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Home My WebLink About952417.tiffRESOLUTION RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - SWY4SW' S12, T5N, R65W 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, Weld County, Colorado, is the owner of vast acres of mineral lands located in Weld County, Colorado, and WHEREAS, the Department of Purchasing was authorized to solicit bids for lease of a portion of said mineral acres not currently leased, and WHEREAS, Snyder Oil Corporation, 1625 Broadway, Suite 2200, Denver, Colorado 80202, submitted the high bid to lease 10.99 net mineral acres, more or less, described to -wit: SW'/,SW'% of Section 12, Township 5 North, Range 65 West of the 6th P.M., Weld County, Colorado WHEREAS, Weld County desires to accept the high bid offer submitted by Snyder Oil Corporation to lease the above described mineral acreage for $10.11 per net mineral acre, for a total sum of $111.11, together with a rental fee of ONE DOLLAR ($1.00) per net mineral acre, which lease is to run for a period of three (3) years, commencing December 6, 1995, and ending at 12:00 noon on December 6, 1998, unless otherwise held, as stated in the lease agreement which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the high bid offer of Snyder Oil Corporation be, and hereby is, accepted for a period of three (3) years. 952417 LE0001 C : .vutCQC.7, OIL AND GAS LEASE - SWYSW'% S12, T5N, R65W PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day of December, A.D., 1995. Clerk to the Board a BY: 'Deputy Clerk the Board BOARD OF COUNTY COMMISSIONERS COUNTY, C OgAQO Dale K. Hall, Chairman At 41 arbara J. Kirkmeyee ro-Tem "George axter Constance L. Harbert 1' % 1JASA/ a bsier . 952417 LE0001 AR247240c AR2462455 VELD COUNT! OIL AND GAS LEASE Containing Concaioiag 1Q 99 -cre. man Jr 'sees: In t>9 net mineral acres. ion or Less: TSIS LEASE ACREMORr, dared this 6th day of December 19 q5 , made and encored into by and between w nA coserr. COLORADO. a political subdivision of the SLATE OF COLORADO. acting by and through the BOARD OF COUNT! CM11155IONER5 Of THE fDOMrr OF VELD. for its respective interests. e!o BOARD OF Canal CUmmsslo fns, -VELD mulct DINFENh1AL CENTER. 913 1O17 STREET. CREELZT. CO 60671. hereinafter called Lasser. and: Snyder Oil Coippration 1625 Broadway, Suite 2200 Denver, CO 80202 hereinafter called Lessees tanresstni U1ERFAS, said lessee has applied to Lessor for an oil sod gas lease covering the Land herein described, and has paid a filing fee In the amount of 810.00, plus a boons consideration of 110.11 per mineral acre, (Wet by Lessor as an additional consideration for she granting of this Luse. sad Lessee agrees to pay as annual rental of 8 , computed arm the rate of 8 , par atonal sere or fraction chariot per year, and the following considerations VLiEREAS, all the segsirmeence relative to said application.have been duly complied with sad said application has been approved and allowed by Leasers 77:7100=7, to tomaidetarian of the egra.manas Lenin. us the pert of Lessee to be paid, Rapt and performed. Lassos deem lease exclusively to lessee fat Om sole and only purpose of drilling (or. development of and production of oil and gma, or either of than. thereon and chenfrmm rich the right to on all oil and gee so peudtieed and sowed therefrom end not reserved as royalty by Lessor seder the tens of this lease, together with rights -of -soy. easements and servitudes for pipelines, telephone and telegraph liana teaks and fixtures for producing ad caring for such product, sad bonging aid, boarding employees. end say and all rights and privileges necessary for the exploration gad operation of said load for oil and gas, the following described land situated is the County of Veld. State of Colorado, and son particularly described as fellewss DESCRIPTION OF TARO Steno! SWa5Wjg (See attached) 12 TORINDII7 Twat 5N 65W TO VANS AND TO VOf70 said Lad, and all the rights and privileges granted hereunder to Lessee until the bout of twelve o'clock moon on the 6th day of - December . 19.9SL as primary term, aed so long thuresfter as oil and gas, or either of chum, is produced is paying quantities fro* seid land or Lessee La diligently engaged in bona fide drilling or reworking operations on said land. subject co the tens sod conditions herein. Drilling or no.nrkisg oporacioos shall be deemed to be diligently performed it there is no delay or ressetion thereof for a greater -period then sixty consecutive days unless an extension is writing is granted by 1 h provided that sock drilling or reworking operations are commenced during said primary term or eny extension thereof or Mafia this lea Ls la force .by reason of production of oil and gas or either of them. or char such reworking is commuted within. sixty days upon cessation of production for the purpose of re-establishing the sew, sad provided fuerher that such predeecian is commenced during such primacy termer any extension thereof. or while this lease is in farce by reason of eachdrilling or reworking operations or other production. 2467455 8-1522 P-413 12/14/95 01:29P PG 1 OF 9 REC D0C Weld County CO Clerk & Recorder 0.00 2472406 B-1528 P-165 01/18/96 04:29P PG 1 OF 10 REC D0C Weld County CO Clerk & Recorder 0.00 952417 EXPLORATION - Lessor reserves the right to conduct exploration on the lensed not rote [f e.. -a wits i h-aherein. land provided such exploration does r B .granted he re i. In consideration of the presses, 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 sun of One Dollar ($1.00) per acre for the land covered hereby as delayed rental for the tern of the erensioo. 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. IOTALTY - 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, 12.5: of the oil produced and saved from the leased land. At the option cf 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 tacks. 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 he 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 lass than the prevailing price received by ether producers in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. g B. On gas, including casicgoead gas or other gaseous substance, 12.5: of the fair market value et 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 walue of rush ;as for determining tha loyalties -payable hereunder shall be the such gas is sold under such price at which ------ e t. No approval by lessor of the ter.: 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' notate to Lessee, Lessor nay 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 awns a lesser interest in the oil and gas deposits of the above-6.sscribed land than the entire and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to lessor only in the porinn which its interest bears to the whole and undivided fee, but no refund of any bonus consideration shall be made by Lessor hereunder, 2467455 B-1522 P-413 12/14/95 01:29P PG 2 OF 9 (Aevi'2472406 8-1528 P-165 01/18/96 04:29P PG 2 OF 10 952417 3- RECORDS - Lessee agrees to keep and to have in possession camnlete and accurate books and records showing the production and disposition of any and all substances produced oa the leased Land and to permit Lessor, at all reasonable hers, to examine the same, or .0 furnish copies of sane 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. A. !R—AsuR s - All production shall be accurately measured using standards established by the American Gas Association (ACA) 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. PLFerrs .'YD ?M'C?.TS ,.-1 pay_em:5 and'reparts due bereunder 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 ter= hereof. Oil royalty payments and sup -do —L-5 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, -qu►lifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. • 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, lines, 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 this 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 et 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 (AO) 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 base, or any of its terns expressed or implied. In no case shall any surrender he effective until Lessee shall have made full provision for conservation of -the leased products and protection of the surface rights of the leased land. 2467455 B-1522 P-413 12/14/95 01:29P PG 3 OF 9 (Ravi2472406 8-1528 P-165 01/18/96 04:29P PG 3 OF 10 952417 9. ASSIGO rrS - 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, that 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 cf this lease. -R. 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 tat portiun 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 terra 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 ins 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 NCF/D). In the event production drops to this amount or less, any overriding royalties which exceed five percent (5t) 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 DELLS - 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 ocher data, the: 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. L2. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceedwith 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 lead lies. 2467455 8-1522 P-413 12/14/95 01:29P PG 4 OF 9 (Rev.2472406 8-1528 P-165 01/18/96 04:29P PG 4 OF 10 952417 13. POOLING CLAUSE - Lessee may at any tine or tines pool any par or all of said land or Lease or any stratum or strata with other lands and leases, stratum or strata, in c`_e 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 baving 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 frc= 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. UNITTZATION - COMMUNITIIZA:ION - in the event Lessor permits the land herein leased to - be included within a commuaitr ation o. ,r.tt-c t_on s ._-_t, the terms of t _s l..ase nay be leaned to be modified to conform to such agreement. When -only a portion -of the Land -under this lease is committed by an agreement, Lessor say 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 ter -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 evert prior to the end of the primary term cf the lease or the extension term:nf 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 rata of production of wells on adjoining lands within the same field and within the licit: 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 wars - if Lessee stall complete a well on the leased lard 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 tit -is 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 mini= 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 maxiran 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 easing set in each well, where yet, 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 ruu; 2467455 B-1522 P-413 12/14/95 01:29P PG 5 OF 9 (R."ia24724©6 B-1528 P-165 01/18/96 04:29P PG 5 OF 10 952417 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 cf the inforncion required by this paragraph is contained in reports required to be filed with the Gil ann Gas Conservation Commission of Colorado, the requirements of this paragraph for such iniormation tay be satisfied by such filing with said Commission, except for copies of the reports as are retired 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 Belo. 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 pr -_r to co®encing drilling operations thereon. Lessee shall notify Lessor before cotmencing to plug and arancon 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 cm said land. No operations shall be commenced on the land hereinabc.e described unless and until Lessee shall have filed a good and sufficient bond with Lessor, in an =curt to be fixed by Lessor, to secure :he payment for such damages as may be caused by Lessee's operations on said land and to assure co= liance with all she terms and provisions of this lease, the laws of the State of C-'---^-, and the rules and regulations thereto appertaining. A bond may be held in effect for the life of production of any well. 20. SE1L21ENT - 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 tens 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 expiation hereof, shall automatically become the property of Lessor. O ri O B-1528 P-165 01/18/96 04:29P PG 6 kip O 1 N N- N (Revised 5/91) 21. OTHER DISCOVER? - 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. DATER - 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. .f Lessor is the surface owner, said permission shall not be unreasonably withheld. If Lessee desires to establish or adiud. ate any water right for beneficial use on the leased land, any such adjudication or application scull be in the mace 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 bearing, as hereinafter provided, to cancel this lease as to ell of the leased land so claimed or possessedby1 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 retards 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 sailing said notice, Lessee shall correct tutu failure or default, no cancellation will be made. If such 2467455 B-1522 P-413 12/14/95 01:29P PG 6 OF 9 952417 failure or default is not corrected within thirty (30) days after the mailing of such notice, and `_ 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. =TENSION - 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 ter= 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 core than six (6) months from the original expiration date. B. That the Lessee shall pay to the Lessor the s„- cf one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre. C. The Lessee asst pay to the Lessor the sum of One Collar ($1.00) per acre leased as delayed rental for the tee 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 0 'i O N B-1528 P-165 01/18/96 04:29P PG CD CD et (N N r eq N 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 XXXXXXXXX of such specific award(s) shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall he removed by Lessee per terms in the S2itiL*5D7T 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 sr taken. 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including tut 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. 2& ARCHAEOLOGY - Lessee shall not destroy, disturb, car, collect, remove or alter resources of any kind on Weld County lands as provided by law. These resources to, all artifacts of stone, wood or metal, pictographs, strictures, and bones. prehistoric or historic nature shall be reported to Lessor or the State immediately. 29. DEFINITIONS - any prehistoric or historic include, but are not limited A discovery of anything of of Colorado Archaeologist 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. '0i1 and gas' as used herein shall include all substances produced as by-products therewith, including But not limited to sulfur. (Revised 5/91) 2467455 B-1522 P-413 12/14/95 01:29P PG 7 OF 9 952417 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. IRS 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 on sublease or assignment hereof, cr 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 :he 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, cc the right of Lessee to use such abstracts upon request at any time during the tern of the lease. IN WITNESS efl?_OF, lessor has hereunto signed and caused its name :c be signed by the BOARD OF COW C01!fISSiONERS OF "'E.c COUNTY OF 4r.:;), with the seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. ATTEST:, Weld Cowley C46rk to the Board tlitili 67:'11,l-1 Dany Clerk the Board Rio G r p NA\\ a opouoo • 'telnofDenver SS BOARD OF COUNTY CO•i" ISSIONERS 4e' OUNTY, COLORADO LESSEE: CORPORATION By; Leoir : Hinton Attorney -in -Fact The foregoing instrument was acknowledged before me this 5th day of December , 19 95 by Ton .T Hinton , Attorney -in -Fart on behalf of Snyder Oil Corporation, a Delaware Witness my band and official seal.,/ My Commission Comssion Expires: /G - 50 / I/ Notary Public Corporation. 2467455 B-1522 P-413 12/14/95 01:29p PG 8 OF 9 2472406 8-1528 P-165 01/18/96 04:29P PG 8 OF 10 (Revised 5/91) 952417 EXHIBIT "A" Attached to and made a part of that certain Oil and Gas Lease dated ,Uro /7t 1OA ) lic 1995, between Board of Weld County Commissioners and Snyder Oil Corporation. Township 5 North, Range 65 West Section 12: A 1.518 acre tract in the SW/4SW/4; and that portion of the SW/4SW/4 lying E of the S. Platte River, and those lands lying W of the S. Platte River, but North of the County Road, except a 1.518 acre tract; and a part of the SW/4SW/4, beginning at a point 30 ft. South of the Northwest corner of the SW/4SW/4, thence by true bearing, var. 14 degrees, 00 minutes East, South 1 degree, 30 minutes East 108 feet; thence South 76 degrees. 30 minutes East, 790 feet: thence North 64 degrees, 20 minutes West 500 feet; thence North 60 degrees, 18 minutes, West 100 feet North; thence North 79 degrees, 00 minutes, West 130 feet; thence South 87 degrees. 40 minutes West 90 feet to the true point of beginning (containing 1.5 acres, more or less). Containing 10.99 acres, more or less. END OF EXHIBIT "A" 2467455 B-1522 P-413 12/14/95 01:291' PG 9 OF 9 2472406 8-1528 P-165 01/18/96 04:29P PG 9 OF 10 952417 ";: WI�Y� COIAAADO Snyder Oil Corporation Attention: Leon J. Hinton 1625 Broadway, Suite 2200 Denver, CO 80202 Dear Mr. Hinton: WELD COUNTY CCY! tIFFF t! COUNTY ATTORNEY PHONE (970) 356-4000 EXT.4391 1496 J" -5 An D 31 FAX (970) 352-0242 P.O. BOX 1948 GREELEY, CO 80632 December 27. 1995 RE: Annual Rental for Oil and Gas Leases Enclosed is a copy of the Weld County Oil and Gas Lease with Snyder Oil Corporation as the lessor. The property which is leased is the southwest quarter of the southwest quarter of Section 12, Township 5 North, Range 65 West of the 6th P.M., Weld County, Colorado. A total of 10.99 net mineral acres are involved. The oil and gas lease has been signed by all parties involved and recorded in the office of the Weld County Clerk and Recorder. Unfortunately, the oil and gas lease did not include the annual rental which is required for all Weld County oil and gas leases. Normally the annual rental is $1.00 per mineral acre or a fraction thereof. Thus, for this oil and gas lease, the annual rental should be $11.00 and should be stated on the first page. I respectfully request that you agree to the annual rental of $11.00 by signing this letter below and sending the same to my office. I will then include this letter with the original oil and gas lease with the records of the Clerk to the Board of County Commissioners of Weld County. If you should have any questions regarding this letter, please feel free to call me at (970) 356-4000, extension 4390. rs trul Attorney David W. Siple l6cdd/Jhl$ huJAttorney In Fact for Snyder Oil Corporation, a Delaware Corporation BTB/DB: SNYDER Enclosure pc: Shelly Miller 2472406 8-1528 P-165 01/18/96 04:29P PG 10 OF 10 952417 SLIM V': ELD CCL' , I October 16, 1995 r75 ITT 17 21 CLEM* TO THE LP WeldCounty Colorado Board of County Commissioners P. O. Box 758 Greeley, CO 80632 RE: Request for Oil and Gas Lease TownshjL5 North, Range 65 West Section 12: SW/4SW/4 Weld County, Colorado Gentlemen: Snyder Oil Corporation 1625 Broadway Suite 2200 Denver, CO 80202 303/592-8500 Fax 303/592-8600 Snyder Oil Corporation ("SOCO") respectfully requests Weld County Colorado, Board of County Commissioners grant an Oil and Gas Lease for 10.99 gross and net acres in the referenced lands. This acreage is described as follows: A 1.518 acre tract in the SW/4SW/4: and that portion of the SW/4SW/4 lying E of the S. PlatteRiver, and those lands lying W of the S. Platte River, but North of the County Road, except a 1.518 acre tract; and a part of the SW/4SW/4. beginning at a point 30 ft. South of the Northwest corner of the SW/4SW/4, thence by true bearing, var. 14 degrees, 00 minutes East, South 1 degree, 30 minutes East 108 feet; thence South 76 degrees, 30 minutes East, 790 feet; thence North 64 degrees, 20 minutes West 500 feet; thence North 60 degrees, 18 minutes, West 100 feet North: thence North 79 degrees, 00 minutes, West 130 feet: thence South 87 degrees, 40 minutes West 90 feet to the true point of beginning (containing 1.5 acres, more or less). Enclosed for your information is a copy of the applicable pages of Drilling Title Opinion dated August 31, 1993 covering the spacing unit for said lands. Please advise the undersigned should you require additional information in order to grant an Oil and Gas Lease for the 10.99 acres. Very truly yours. Rebecca E. Van Blaricom Properties Administrator revb Enclosures 952417 KUHN, CARNES, & ANDERSON, P.C. ATTORNEYS AT LAW GREfC,EN RUN ,a A. ANDERSON orCw teen N CARNES October 20, 1993 SUITE 307,1350 SEVENTEENTH STREE DENVER COLORADO 80202 (303)623-9183 FAX (303) 623-9180 Snyder Oil Corporation 1625 Broadway, Ste. 2200 Denver, CO 80202 Attention: Ms. Rebecca E. Van Blaricom Ladies/Gentlemen: DRILLING TITLE OPINION August 31, 1993 W/2SW/4 Sec. 12, T5N-R65W, 6th P.M Weld County, Colorado LANDS COVERED BY OPINION TOWNSHIP 5 NORTH, RANGE 65 WEST, 6th P.M. Section 1-2: W/2SW/4 (80,00 acres,more or less) c0(;6i(1),, -Weld County, Colorado TITLE DATA EXAMINED In preparing this drilling title opinion, the undersigned has examined the following: 1. Tract index of Transamerica Title Company, Greeley, Colorado, covering instruments relating to the captioned lands, recorded from inception to June 1, 1993, and tract index of Stewart Title Company covering instruments related to the captioned lands, recorded from June 1, 1993, to August 31, 1993. 2. Records of the Clerk and Recorder of Weld County pertaining to instruments on index at Transamerica Tide Company and Stewart Title Company, covering the captioned lands recorded from inception to August 31, 1993. 952417 Snyder Oil Corporation October 20, 1993 Page 2 OWNERSHIP Each interest tabulated below is an undivided interest and has been proportionately reduced where appropriate: Based upon the title data examined, and subject to the exceptions, comments, and requirements set forth herein, the undersigned fords title to the captioned lands and the leases tabulated herein, as of August 31, 1993, to be owned and encumbered as follows: TRACT A, the NW/4SW/4, except Tract B (containing 38.00 acres, m/p: SURFACE OWNERSHIP W. Catherine Mathews Roadifer and Paul R. Mathews 3791 East 18th St. Greeley, Colorado 80631 (Lease II) MINERAL OWNERSHIP: W. Catherine Mathews Roadifer and Paul R. Mathews (Lease 11) Maggie F. Johnson 1605 Fifth St. Greeley, Colorado 80631 (Lease I) All 1/2 1/2 TRACT B, a portion of the NW/4SW/4, described as beginning at the NW corner of the SW/4 of Section 12, th. N 90 deg. 00 min. E, 275.82 ft.; th. S 2 dew. 47 min. W, 30.00 ft. to the true point of beginning; th. N 90 deg. 00 min. E, 871.66 ft., th. S 00 deg. 00 min. E, 100.00 ft.; th. N 89 deg. 59 min. W 874.39 ft.; th. N 01 deg. 34 min. E, 99.83 ft. to the true POB (containing 2.00 acres, m/I): SURFACE OWNERSHIP: Norman Gene Cox 1620 Holly Ave. Greeley, Colorado 80631 (Lease III) All Snyder Oil Corporation October 20, 1993 Page 3 MINERAL OWNERSHIP: Norman Gene Cox 1/2 (Lease III) Maggie F. Johnson (Lease I) I'RACT C, a 1.518 acre tract in the SWSW: SURFACE OWNERSHIP: Weld County (Unleased) MINERAL OWNERSHIP: Weld County (Unleased) TRACT D, that portion of the SWSW lying E of the S. Platte River, and those lands lying W of the S. Platte River, but North of the County Road, except Tract C: 7 ,)_7 4; SURFACE OWNERSHIP: Josephine Clough and Robert M. Gilbert, Co -Trustees of Share No. 2 under the Will of Albert C. Clough, Deceased 2112 40th Ave. Greeley, Colorado 80634 (Unleased) MINERAL OWNERSHIP: Weld County (Unleased) All MI 952417 Snyder Oil Corporation October 20, 1993 Page 4 TRACT E, part of the SWSW, begining at a point 30 ft. South of the Northwest corner of the SWSW, th. by true bearing var. 14 deg. 00 min. E, S 1 deg. 30 min. E, 108 ft.; th. S 76 deg30 min. E, 790 ft.; th. N 64 deg. 20 min. W, 500 ft.; th. N 60 deg. 18 min. W, 100 ft.; N 60 deg. 18 min. W, 100 ft.; th. N 79 deg. 00 min. W 130 ft.; th. S 87 deg. 40 min. W, 90 ft., to the true point of beginning (containing 1.5 acres, mil): SURFACE OWNERSHIP: Weld County (Unleased) MINERAL OWNERSHIP: Weld County (Unleased) TRACT F, .767 acres in SWSW and .804 acres in SWSW: SURFACE OWNERSHIP: Weld County MINERAL OWNERSHIP: All All All Maggie F. Johnson 1/2 (Lease I) W. Catherine Mathews Roadifer and Paul R. Mathews (Lease II) 1/2 TRACT G, the SWSW lying W of the S. Platte River, and S of the County Road, except Tracts E and F: 2'j SURFACE OWNERSHIP: W. Catherine Mathews Roadifer and Paul R. Mathews (Lease II) All 952417 Hello