HomeMy WebLinkAbout952416.tiffRESOLUTION
RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED
BY WELD COUNTY, COLORADO - NW' S9, T5N, R61W
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, HS Resources, Inc., 1999 Broadway, Suite 3600, Denver, Colorado 80202,
submitted the high bid to lease 160 net mineral acres, more or less, described to -wit:
NW'/ Section 9, Township 5 North, Range 61 West of
the 6th P.M., Weld County, Colorado
WHEREAS, Weld County desires to accept the high bid offer submitted by HS Resources,
Inc., to lease the above described mineral acreage for $15.00 per net mineral acre, for a total sum
of $2,400.00, together with a rental fee of ONE DOLLAR ($1.00) per net mineral acre, which lease
is to run fora 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 HS Resources, Inc., be, and hereby is, accepted for a
period of three (3) years.
952416
LE0213
CC
OIL AND GAS LEASE - NW% S9, T5N, R61W
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.
ATTEST`1\
Weld e Pc my Clerk to the Board
BY: +� L l Ls/
Deputy Cler
the Board
D AS TO FOR
y
ttor
BOARD OF COUNTY COMMISSIONERS
WE • COUNTY CO •R
arba J. Kirkmeyer ' ro-Tem
c_x.�Cj
i r
eoTye e. Baxter
Constance L. Harb4rt
,g
W. H. ebster
f
952416
LE0081
AR2467456
Containing
Containing
16n
160
WELD COUNTY OIL AND GAS LEASE
acres, more or less:
net mineral acres, more or Less:
THIS LEASE AGREVIENT, dated this 6th ay of December . 1995 . made and entered into by and
between cap COUNTY; COLORADO, a political subdivision of the STATE OF COLORADO, acting by and through the BOARD OF
COUNTY COtf SSIONERS OF THE COUNTY OF WELD, for its respective interests, c/o BOARD OF COUNTY CCtRfISSIONERS, WELD COUNT?
CENTENNIAL CENTER, 915 LOTH STREET, GREELEY, CO 80671, hereinafter called Lessor, and:
HS Resources_, Lnr
1999 Broadway. Suite 3600
Denver, CO $0202
hereinafter called L
WITNFSSTH
WHEREAS, said L has applied co Lessor for an oil and gas lease covering
paid a filing fee in the amount of SI0.00, plus a bonne consideration of $1 5 n
_Lessor as an additional consideration for the granting of this lease, and Lessee
S 160.00 , computed ac the rate of S 1.00 , per mineral acre or
following consideration'
the land herein described, and has
(� per mineral acre, fixed by
agrees to pay an annual rental of
fraction thereof per year, and chat
WHEREAS, all the requirements relative to said application have been duly complied with and said application has
been approved and allowed by Lessor:
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 drilling for, development of and production of oil
and gas, or either of them, thereon and therefrom with the right co awn all oil and gas so produced and saved therefrom
and not reserved as royalty by Lessor under the terms of this lease, together with rights -of -way, easements and
servitudes for pipelines, telephone and telegraph lines, ranks and fixtures for producing and caring for such product,
end 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
particularly described as follows,
DESCRIPTION OF LAND SECTION
NW3
TOWNSHIP RANGE
9 5N 61W
TO HAVE AND TO HOLD said Land. and all the rights and privileges granted hereunder to Lessee until the hour of
twelve o'clock noon on the 6th day of December , 19 98 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 in bona
Side drilling or reworking operations on said land, subject co 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 a 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 then. or that such reworking is comenced 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 primer) term or any extension thereof, or while this lease is in force by reason of such drilling
or reworking operations or other production.
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EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such exploration foes
not interfere with rights granted herein.
In consideration of the -premises, the parties covenant sad agree as follows:
I. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION paragraph hereof.
Lessee shall pay to Lessor the sum of One Dollar ($1.00) per acre for the Land covered hereby -as delayed
rental for She tern of the extension. Rentals sec at the time of established production shall be paid during
the remaining lice of this lease, annually, in advance, -on or before each anniversary date hereof. There
shall be no -refund of unused rental.
i. MULTI — 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, 12.52 of the oil produced and saved from the leased land.
At the option of Lessor, and with sixty (60) days' notice co Lessea, 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 cr storage tanks designated by Lessor, but lessee shall not in such
case be required to provide free tankage for any such ail for a longer period than one s:otth after the
same is run into tanks. With sixty (60) days' notice co 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 be 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 less that the prevailLng price received by ocher producers
in the field for oil of like grade and -gravity at the tine such oil is run into pipelines or storage
-tanks.
B.
On gas, 3tludLtg casitghead gas or other gaseous substance, ''' 't of the fair narket value at the
well or of the price received by Lessee at the well, whichever is greater, of -a11 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 value of such gas for determining the -royalties payable hereunder shall be the price at which
such gas is sold under such ct. No approval by Lessor of tee terns of any such agreement shall
operate to make Lessor a party thereto or obligate it thereunder in any way. At the action of Lessor,
and with sixty (60) days' notice to Lessee, Lessor may take its royalty in kind. With sixty (60)4sys'
notice to Lessee. Lessor may cease caking gas -royalty in kind.
C. ALL costa of marketing the oil and/or_gas produced shall be borne by Lessee and such costa shall -not
directly or indirectly reduce tba royalty payments to Lessor. Except that marketing costs for Lessor's
in -kind royalty shall be borne by Lessor.
D. If Lessor owns a 1 interest in the oil and gas deposits of the above -described ]and than the entire
and undivided fee simple estate, then the -royalties and rentals herein provided shall be paid to Lessor
only into portimm which its interest bears to the whole and undivided fee, but no -refund of any bonus
consideration shall be made by Lessor hereunder.
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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 tot be unoreasonable with requests. All said books and
records shall be retained by Lessee and made available in Colorado to Lessor fora -period of not less than
five years.
a. !EASUR EN1S - All production -shall be accurately measured using standards established by the American Gas
Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be
tamperproof as nearly as possible. Oil royalties due withinmhe 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.
S. -PATIENTS AND REPORTS - All payments and reports due hereunder shall be made on or _before the day such
payments and reports are due. Nothing in this paragraph shallde construed to extend the expiration of -the
primary term hereof.
Oil royalty payments and supporting 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 Lastday mf the second month following each month's sale of production.
All payments shall berzade by cash, check, certified check, or -money order. Payment Waving restrictions,
qualifications, orancunbrances of any kind whatsoever shall not be accepted by Lessor. 3 penalty for elate
payment shall be charged as set forth in the PENALIZES paragraph herein.
6. PENALTIES - A penalty shall beiaosed 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 urovidedfor by law and may be in the formof.-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 tine 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 the administration of
lands and minerals owned by the County of Weld, and -to laws, rules and regulations governing oil end 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 optionmf Lessor, -result in default as -provided hereinafter.
8. SURRENDER - Lessee may at any tins, by-payingto Lessor all amounts then due as providedherein, surrender
this lease insofar as the sane covers all or any portion of the land hernia leased and be relieved from
further obligations -or Liability hereunder with -respect to the land so surrendered; provided that no partial
surrender or cancellation ofthislease shallhelor less than contiguous tracts xf approximately forty (40)
acres or Govermental lot corresponding to -e 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 courtof 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 aball baventade full provision for comservation of the leased products -end protection
of the surface rightsof the leased land.
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9. ASSIGNY.ENfS -
A. Lessee, -with prior written consent of Lessor, shall have the right to _assign the -entire leasehold
interest of said Lassa. in _all or part of the land covered hereby, tut not _less, however, that
contiguous tracts of _approximately forty (40) acres or Governmental lot corresponding to a -quarter-
quarter section for any -partial _assignment, end for approval of such assignment Lessor shall -make an
assignment charge inn an amount to be determined by Lessor. Prior to written approval by _Lessor of
assigoment of this lease, Lessee (assignor) -shall not be -relieved of its obligations under the tars
and conditions herein. An assignment shall not extend the team of this lease.
B. If any assignment of _a portion -of that landtovered 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 :ease, and
limited as to term as this lease is limited, and the assignor shall be released sad -discharged from all
further obligations and liabilities as to -that portion so assigned.
C. Lessee shall mmtify Lessor. of all sssigments 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 tba parties thereto, and outside the terns us: this leases' and no 4ispute
between parties to any such tssigmeut shall operate to relieve Lessee from performance of -any terns
or conditions hereof or to postpone the tine therefor. Lessor shall at all times be entitled to look
solely to ixssee or his assignee shownsn its books as being the sole otter hereof, and for the sending
of all notices required by this _lease and for the performance of .all terns and conditions _hereof.
D. Although not binditgxnlassor, all instruments of every kind andaature whatsoever affecting this lease
should be filed with the Lessor.
10. OVEiRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall be subject to
approval bylassor. :'he total of said overriding -royalties stall not exceed five percent (51), _including
any overriding royalty previously provided for_unless production exceeds a nonthly averagemf fifteen (15)
barrels per day or ninety thousand cubic feet of gas per day (90 P:CFfD). In the event -production drops to
this amount or less, any overriding -royalties which exceed five percent (5:) may be suspended. Lessor's
approval =of a reservation or assignment =of an overriding royalty shall tot 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 WELLS — Lessee .grees to protect the leased land from drainage by -offset wells located -on adjoining
Lands not owed by lessor, -when such drainage is -not compensated for by mpunter-drainage. It shall he
presumed that the =pmduction of rail std gas from offset wells -results 1n 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 smell or wells
on the leased lsnd would not accomplish the purposes 'of protecting the _deposits under the leased land.
assorts decision es to the exiateme of such drainage shall be final, and Lessee shallsomply with Lessor's
order thereon or surrender -this leasers to any such undeveloped acreage as designated by lessor.
12. DEVIIDPlfT --Upon discovery of rail and gas or either of them -on the leased land, Lessee shall proceed with
reasonable diligence to develop -said land -at -a rate and to an extent cosensurace -with the economic
development of the field in which the leased land lies.
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U. POOLING CLAUSE - Lessee may at any tins or times pool any part or all of said land or lease or any stratum
or strata _with other lands and leases, stracsn or strata, in the same _field so as to constitute a spacing
unit to facilitate _an orderly or uniform well -spacing patter= or to comply with any order, rule, or
regulation_of the State or Federal regulatory or conservation agency having 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 co lessor, or -to the depository bark. Drilling or reworking
operations upon or production from anypartof such spacing unit shall be considered for all purposes of this
lease as operations or productions frm this lease. Lessee shall allocate to -this lease the proportionate
share of production which the acreage 'in this lease included an any such spacing unit bears to the total
acreage in said spacing unit.
1+. ON=T12ATION - C@21UNITIZATION - In -the event Lessor permits -the land herein leased to be included -within a
commanitixation or unitization agreement, the tens of this lease may be steamed tole modified -to conform
to such agreement. When only a portion sif the Land under this lease is committed by an agreement, lessor
may segregate the land and issue a separate lease for-each-portioc not toomitted thereunder; -the term of such
separate lease shall -be limited as to the original ter= of -this lease. The -terns 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 anaiversarydate of the lease following the ter_ioacion-cane of the unit
or part -rhereo£ modifying the lease, but into event -prior to the end of the primary tern of the lease or
the -extension term of the Lease.
13. PRODUCTION - Lessee shall, subject to applicable laws, rsgula:tont and orders, operate end produce all -wells
upon she 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 rare commensurate with the rate of production of wells on adjoining lands
within the _same field and within the limits 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 _'n writing by Lessor. Lessee shall be -responsible for adequate site security on all
producing properties.
16. SSUT-IN LAS - if lessee shall asplete a well on the leased land productive of gas and lessee is able
to produce such gas due to a lack of suitable market therefor, Lessor nay 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
asbnc-in well. Lesseeshall'pay to lessor a shut-in royalty equal -to 62.00 per acre -of the lease per an=
in addition to the annual rental. The minimum amount of such s sttin royalty payment shall be S240. Each
_ year's shut -An royalty shall be _forfeited to Lessor except far theshut-in royalty paid -for the year during
which the well tegins production. The maximum 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 EritiSION paragraph herein. The
granting of any further extensions shall best the sole option of Lessor.
17. of l.TIONS - 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 .all
drilled hereunder, shoving by name or description the formations passed through, the depth at -which _each
formation was _reached, the member of feet of -each size casing set in each -well, -where set, end the total
depth of each -well drilled. Lessee, within thirty (30)stays after the completion or abandonment of any -well
drilled hereunder. shall file in -the office of laser s -c plate and correct logof such well, together with
a copy -of tba electric log and -the radioactivity log of the -well when such logs, or either of -them, are rut.:
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and also a copy of all drill stem zest 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 in.fcreation may be satisfied by such filing with said Commission, except for copies of
the reports as an required by the following paragraph, and provided that all such information is immediately
available co Lessor. Any proprietary information so submitted shall not be subject to public inspection
under Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to
protect the fresh water wells of the area.
18. -NCTIe CATION - Lessee shall notify Lessor and the surface lessee or surface owner -of the location of each
4ri11 site at least two -weeks prior to commencing drilling operations thereon. Lessee shall notify Lessor
before commencing to plug and abandon 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 an said nand. No operations shall be
commenced -on the land hereinabove described unless and until Lessee shall have filed -a _good and sufficient
bond with Lessor, in an amount to be fined by_.essor, to secure :he parent for such damages as may be caused
by Lessee's operations on said land and to assure compliance with all the xrns and provisions of this lease,
the laws of the State of Colorado, and :he -rules and regulations thereto appertaining. A bond -may rue held
in effect for the life of production of _any well.
20. SS^..E!Fl7T - lessee shall tot 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 terms 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 expiration hereof, shall
automatically become the property of _Lessor.
21. OEER DISCOVER! - Should -Lessee discover an valuadle products other than oil and gas, on or-w.ttin the
leased land, Lessee shall within seven (7) days -report such discovery to Lessor, in which avert Lasses and
Lessor may negotiate a provision for production of suchiiscnvery.
iZCER --This lease -does not grenc-permission,azpress or implied, to Lessee for water -exploration, drilling,
or establishing water wells without the -Mitten permission of the surface owner. If Lessor is the surface
owner, said permission shall not be unreasonably withheld. If L desires to establish or adjudicate any
water right for beneficial ruse on the leased land, any such adjudication or application _shall be in the nave
of lessor if Lessor is the surface -owner. -The same shall -apply co any nontributary water rights established
on the leased nand which may be put so beneficial qua 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 Sy 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 off ice. address of said lessee as sown by she records of Lessor, • notice of intention to cancel
for such failure= default, specifying the same, stating that if within thirty (30) days from the data of
mailing -said notice, Lessee shall correct each failure or default, -no cancellation -will be made. If such
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failure or default is not corrected within thirty (50) days after thex ailing of such notice, and if Lessee
does_mot requesta 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. LXTENSION --If Lessee failstormaka discovery of oil and gas, or-tither_mf them, inlaying quantities during
the primary term hereof, or during drilling operations commenced during the -primary term hereof, Lesseeimay
make written application to Lessor for an extension of this lease. The granting of such-esaensionshall be
at it sole option -of Lessor, according to the following conditions:
A. No lease termwill be extended for more Shan six (6) months from the original -expiration date.
B. That theLassee shall pay to the Lessor the sun of ona-third.of the original bonus, with a minia:um bonus
of Ten Dollars (310.00) per acre.
C. The Lessee must -pay to the_.assor the sum of 0-a Dollar ($1.00) peracre leased as delayed rental for
the term of the extension.
D. That the royalty -will rer:aio the sane.
25. 2OLDzBAdtili5S - Lessee shallinde_.ify L-essor agai3c all liability andlass, and against all claims and
actions, including :he befetse of such clais or ac. cs, based upon or arising -out of damage or injury,
including,death, to persons or property caused by or sustained in connactsn with operations on this leased
land orby conditions created thereby, or based upon any violation of any statute, ordinance, or -regulation.
26. CONDE%ATION - If the leased -land shall be taken _ any condemnation proceeding, this lease shall
automatically terminate as of the date of taking. The award for such condemnation shalibe paid tolessor,
except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which -event
XXXXXXXXX of such speci= c award(s) shallbe paid to Lessor in lieu of royalty lost by virtue of the
condemnation. Improvements shall be removed by Lessee per terms in the S Ti 2 1T paragraph herein. If only
a -portion of the leased land is taker, by condemnation, Lessor may, at its option, t-erminate this lease nor
terminate only that portion of the lease so taken.
27. EBBORS -Every effort is made by Lessor to avoid errors in all procedures including hut mot limited to
auctionlistingsand lease preparation. Lessor shall mot be liable for any inconvenience or loss caused by
errors whichoay occur. Lessee shall notify lessor immediately upon discovery -of any errors or discrepancy
whatsoever.
28n ARCBAZ0L00T -lessee shall not destroy, disturb, car, collect, remove or alter any prehistoric -or historic
resources Of myJtimd on Reld County lands as provided by law. These resources include, but are mot limited
to, all artifacts of stone, wood or metal, pictographs, -structures, and bones. A4iscovery of anything of
prehistoric or historic _mature shall be reported to lessor or -the State of Talorado _archaeologist
immediately.
29. DEFINITIONS -
A. Las' as used herein shallumean all gases (combustible andsoncombustible), including but not limited
to-all'gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
B. '0i1 and gas' as used herein shall include ell substances produced as by-products therewith, -including
But not limited to sulfur.
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C. 'paying quantities" as used herein shall mesa and refer _to quantities of oil and gas or of either of
them sufficient to pay for the murrent cost of producing-sase.
30. EIRS AND ASSIGNS - the benefits and obligations of -this lease shall inure to and be binding upon the hairs,
legal representatives. successors 0r assigns of lessee; but no sublease or assignment _hereof, or of any
interest herein, shall be binding upon lessor until the same hes been approved by Lessor as explained in the
ASSIONIEIYI'S' paragraph provided.
]l. WARRANTY OF TITLE -lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lasses access to such abstracts end other title papers as It has in its files. There shall -be no obligation
on _Lessor'. part to -purchase new or supplemental or other title papers nor -CO 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
ban completedits title-exanination adsurativesmrk, subject, however, to.the right of Lessee co use such
abstracts upon request at any -time during the term of -the Lease.
IN PITNZSS V"mc. ICF, Lessor has hereunto siped and caused its mane to be signed by the ABOARD OF COUN.^.
C4! LSSIONElS OF 'Fa -COUNTY OF C. with the seal of this offics affixed, and _Lessee has signed this _agreement, the
_day _and year first -above written.
BOARD OF COUNTY CYt2iISSIONE'S
COUNTY, COLORADO
V ( r
LESsi:; HS IRESOURCESINC.
By:
STATE Or COLORADO )
Denver ) SS
COUNTY or Ottiax )
The foregoing instrument was acknowledged before am this 5th lay -of December 19 95
bY Janet W- LaGg1lP, Attornsy in Tart fur HS Resources, Inc.
Jansen my hand mut afficial -seal.
My omission -Empires: 2—r-1 i 97
U .
anet W. Pasque,/Attorney-in-Fact
2467456 8-1522 P-414 12/14/95 01:301' PG 8 OF 8
inevxsed J171) a
952416
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