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HomeMy WebLinkAbout952415.tiffRESOLUTION RE: AUTHORIZATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - NE1/4 S21, 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, Amicus Energy Company, LLC, 1275 Sherman Street, Suite 101, Denver, Colorado 80203, submitted the high bid to lease 160 net mineral acres, more or less, described to -wit: NE% Section 21, 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 Amicus Energy Company, LLC, to lease the above described mineral acreage for $12.00 per net mineral acre, for a total sum of $1,920.00, 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 Amicus Energy Company, LLC, be, and hereby is, accepted for a period of three (3) years. 952415 LE02 i5 C C Q;7iuca�.� OIL AND GAS LEASE - NE% S21, 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. ATWT / W d CouhtyClerk to the Board to the Board ROV AS TO F BOARD OF COUNTY COMMISSIONERS W t& FOUNTY, QQLOR/ DO Dale K. Hall, Chairman Barbaja J. Kirkmeye Pro -Tern 0 ri George . Baxter Constance L. Harbert 1 tL W. Webst r 952415 LE0081 AE2467454 WELD COUNTY OIL AND GAS LEASE Containing L, a acres, sore or Less: Containing If,n net nineraL acres, more or Less: THIS LEASE AGRE£T, dated this 6th day of December 19 95 , Wade and entered into by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and through the BOARD OF COUNTY C ttiISSIONERS OF THE COUNTY OF VELD, for its respective interests, c/a BOARD OF COUNTY CO11ISSI0NERS, VELD COUNTY CENTENNIAL MITER, 915 10TH STREET. GREELrf, CO 80631, hereinafter called Lessor, and: Amirric Energy Company LAC 1275 Sherman Street. Suite tfj1 Denver, Colorado 80203 hereinafter called L u WITNESSEI1I 1/HExLAS, said Lessee has applied Lu Lasso, for a.. oil _..d ga_ 'amine :.._ 1 -.red `t --in _-__ bed, _ paid a filing fee in the amount of $10.00. plus a bonus consideration of $12.00 per mineral acre, fixed by Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of $160.00 , computed at the rats of $1.00 per mineral acre or fraction thereof per year, and the following consideration, WHEREAS, all the requirements relative co 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 pert 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 to own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the tercet of this lease, together with rights -of -way, easements and servitude. for pipelines, telephone and telegraph lines, tanks and fixture& for producing and caring for such product, and housing and boarding employees, and any and all rights and privileges necessary for the exploration and operation of said land for oil and gas, chi. following described Land situated in the County of UeLd, State of Colorado, and more particularly described as follows: DESCRIPTION OF LAND SECTION NE1 21 TOWNSHIP RANGE 5N 61W TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee until cbs hour of twelve o'clock noon on cbs 6th dal of December . 1998 as primary ten, and so long thereafter as oil and gas, or either of them, is produced in paying quantities from said Land or Lassie is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and conditions herein. Drilling or reworking operation. shell be deemed co 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 corm or any extension thereof or while this lass. is in force by reason of production of oil and gas or either of them, or that such reworking is comenced within sixty days upon cessation of production for the purpose of n -establishing the MAWS, and provided further that mach production is commenced during such primary term or any extension thereof, or while this lease is in force by reason of such drilling or reworking operations or other production. 2467454 B-1522 P-412 12/14/95 01:29P PG 1 OF 8 REC DOC Weld County CO Clerk & Recorder 0.00 (Revised 5/91) I 952415 EXPLORATION - Lessor reserves the right co conduct exploration on the leased land provided such exploration does not interfere with rights granted herein. In consideration of the prenises, 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 sum of One Dollar (51.00) per acre for the land covered hereby as delayed rental for the term of the extension. Rentals set et 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. ROYALTY - 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 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 p pelioes 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 tanks. 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 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 than the prevailing price received by other producers in the field for oil of like grace and gravity at the tine such oil is run into pipelines or storage tanks. 3. On gas, includirg casingcead gas or otter gaseous substance, of the fair =rice: value at 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 utilised off the land by Lessee. A copy of all contracts for sale of ;as 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 sun'_ ====== cm. No approval by Lessor of the terns of any such agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the cytion of Lessor, and with sixty (60) days' notice to Lessee, Lessor nay take its royalty in kind. With sixty (60) days' notice to Le , 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. in -kind royalty shall be borne by Lessor. Except that marketing costs for Lessor's D. If Lessor owns a lesser interest in the oil and gas deposits of the above -described land than the entire and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to Lessor only in the portion which its interest bears to the whole and undivided fee, but no refund of any bonus consideration shall be made by Lessor hereunder. 2467454 8-1522 P-412 12/14/95 01:29P PG 2 OF 8 (Revised 5/91) 2 952415 3. RECORDS - Lessee agrees to keep and to have in possession 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 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. 4. MEASu^RrS - 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 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. PATY.ENTS AND REPORTS - All payments and reports due hereunder shall be made on or before the day such parents and reports are due. Nothing in this paragraph shall be 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 last day of the second .....-_ following each month's sale of production. All payments shall be made by cash, check, certified check, or money order. Payment having restrictions, qualification, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A 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, fines, 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 the administration of lands and minerals owned by the County of Weld, and to laws, rules 'nd regulations governing oil and gas operations in Colorado. VicLaticns 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. a. SURRENDER - lessee may at 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 pfurther 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 (40) -acres or Governmental lot corresponding to a quarter -quarter section; provided further chat this surrender xlause 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 lease, or any of its terms expressed or implied. In no case shall any surrender be -effective until Lessee shall have made full provision for conservation of the leased products and protection of the surface rights of the leased land. 2467454 B-1522 P-412 12/14/95 01:29P PG 3 OF 8 (Revised 5/91) 3 952415 9. ASSIGNMENTS - A. Lessee, with prior Written consent of Lessor, shall have the right to assign the entire leasehold interest of said Lessee in all or parr of the land covered hereby, but not less, however, t_:_ contiguous tracts of approximately forty (40) acres or Governmental lot corresponding to a quarter- -quarter section for any partial assigment, and for approval of such assignment Lessor shall cake 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 hers and conditions herein. An assignment shall not extend the tern of this lease. B. 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 that portion 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 terns of this lease: and no dispute between parties to any such assignment shall operate to relieve Lessee from performance of any tern -or conditions hereof or to postpone the tine therefor. Lessor shall at all times be entitled to lock solely to Lessee or his assignee shown an its books as being the sole owner hereof, and for the sending of all notices required by this lease and for the performance of all terns and conditions hereof. it. 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 MCT!D). 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 reser-ration or assignment of an overriding royalty shall not bind Lessor for payment of said overriding royalty and shall not relieve Lessee of any cf its obligations for payment of royalties to Lessor as provided by ROYALTY paragraphs herein. 11. OFFSET VEIL'S - 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 chat 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 other data, that 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. ii. DEVEIOPlh2TT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceed with reasonable diligence to develop said land at a race and to an extent commensurate with the economic development of the field in which the leased land lies. 2467454 B-1522 P-412 12/14/95 01:29P PG 4 OF 8 (Revised 5/91) b 952415 13. POOLING CLAUSE - Lessee may at any tine or times pool soy part or all of said land or lease or any stratum or strata with other lands and leases, erratum or strata, in the same field so as to constitute a spacing unit to facilitate an orderly cr '-•°^— well -spacing pattern or to comply with any order, role, 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 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 frm 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. UNITIZATION - CQUNNI'_17ATION - in the event Lessor permits the land herein leased to be included within a communitization or unitization agreement, the terns of this lease may be deemed to be modified to conform to much .greement. Then only a portion of the land under this lease is committed by an agreement, Lessor may 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 term of this lease. The tern of the Lease on that portion remaining in the unit shall be deemed to be modified to conform tc such agreement. Nonproducing leases shall terminate on the first anniversary date of the lease following the terninatioc late of the unit or part thereof modifying the lease, but in no event prior to the end of the primary tern cf the lease or the extension term of the lease. 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and produce all wells upon the leased land sc long as the same are capable of producing in paying quantities, and shall operate the same so as to produce at a rate comoensurate with the rate of production cf 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 in writing by Lessor. Lessee shall be responsible for adequate site security on all producing properties. 16. SE'T.-IN Gi:3 - If Lessee shall complete a well on the leased land productive of pas and Lessee is unable to produce such gas cue 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. Eicept, however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of shut-in well, Lessee shall pay to Lessor a shut-in royalty equal tt $2.00 per acre of the lease per annum in addition to the annual rental. Mx minim:^. amount of such shat -in royalty payment shall be 5240. Each year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid ror the year during which the well begins 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 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 • 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 casing set in each well, where set, and the total depth of each well drilled. Lessee, within thirty (30) days after the completion or sbandopment 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 run: 2467454 8-1522 P-412 12/14/95 01:29P PG 5 OF 8 252415 ' and also a copy of all drill stem test -results, pare records and analyses, record of perforations and initial production tests, if any. If any of the information required by this paragraph is contained it reports required to be filed with -the Oil and Gas Conservation Cocission of -Colorado, the requirements of this paragraph for such information may be satisfied by such filing with said Cocniss_oa, extent for copies of the reportsasare required by the following paragraph, and provided that all such information is immediately available to Lessor. Any proprietary information so submitted shall cot 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. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location of each drill site at least =wo weeks prior to tormenting drilling operations thereon. Lessee shall notify Lessor before commencing to plug and abandon any well by copy of:essee's request for approval or sundry notice of in cut 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 commented on the land hereinabove described unless and until Lessee shall have filed a good and sufficient bond with Lessor, in an snour.t to be fixed by Lessor, to secure the payment for such damages as may be caused by Lessee's operations on said land and to assure tom liance with all the terns and previsions of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond _nay be held in effect for the life of production of any well. 20. SIT^.?'=hT - Lessee shall not remove any machinery, equipment or fixtures placed en 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 :his Land for a period of more than six (6) months after the expiration hereof, shall automatically _become the property of Lessor. 11. UR DISCOVER! - Should :Lessee discover any valuable products other than oil act gas, on or wit__. .he leased Land, Lessee shall w -"- seven (7) days report such discovery to Lessor, in which eventLessee and Lessor may negotiate a provision fer production of snob discovery. 22. 37ATFR --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 sv:face owner. If Lessor is the surface owner, said permission shall not be unreasonably withheld. If Lessee desires tc -establish er adj'udicatr any water right for beneficial use on the leased land, any such adj • : or application stall be i... t_. cane of Lessor if Lessor is the surface owner. The same shall apply to any nor -tributary 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 sad amazing, as hereinafter provided, to cancel this lane as CO all of the leased land so claimed or possessed by 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 officeaddress of said lessee as show by the records 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 mailing said _notice, Lessee shall correct such failure or default, no -cancellation will be made. If such 2467454 18-1522 P-412 12/14/95 01:29P PG 5 OF 8 952415 failure or default is not corrected within thirty (30) days after the mailing of such notice, and if lessee does not request a hearing on such notice within -'• —y (30) days, this lease will terminate and be candied by operation of this paragraph without further action by Lessor, or further notice to Lessee. 24. EXTENSION - 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 caenced during the primary tern hereof, Lessee may make written application to Lessor for an -extension of this lease. The -granting of such extension shall be at she sole option of_Lessor, according tc the following conditions: A. No lease tern will be extended for more than six (6) months from the original expiration date. B. Thatthe Lessee shall pay to the Lessor the sum of one-third of the original bonus, with aainimum bonus of Ten Dollars ($10.00) per acre. The Lessee must pay to the Lessor the run of Cue Lofar -( 1.00) pain at:c le:aid as felsyod rental for the ton of the extension. 0. 'That the royalty will main the same. 25. EEOLD 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 cut of damage cr 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. CONDE21ATI0N - if the leased land shall Se taken = any condemnation proceeding, this lease shall automatically terminate as of the date of taking. The award for such condemnation shall he paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which -event XXXXXXXXX of such spe-"'o award(s) shsllre oat- to Lessor in lieutf royalty lost by -virtue of the condemnation. Improvements shall be removed 'c7 Lessee re: terns in the =12= paragraph herein. If only a portion of the Leased land is taker. by ccnde-=.at ton, lessor ray, at its option, terminate this lease or term -=ate only that portion of the lease sc taken. 27. ERRORS — Every effort is made by Lessor to avoid errors in all procedures includigg tut not limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by errors which may ^-"' -. I _son" stall. motif; Lessor t _;'.ately u.)on 4"--..e.-y of ay-errorc a discrepancy whatsoever. ARCdAE0LOGT - Lessee shall not_destroy,_disturb, mar, c-lleot,-¢dove or alter any -prehistoric or historic resources of may kind on Feld County landsas provided by law. These -resources include, but are not limited to, all artifacts of stone, wood _or metal, pictographs, structures, and bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the State of Colorado Archaeologist immediately. 29. DEFINITIONS - 1. "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. "Oil and gas" -as used herein shall include all substances produced as by-products therewith, including But not limited to -sulfur. (Revised 5/91) 2467454 B 1522 P-412 12/14/95 01:29P PG 7 OF 8 952415 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. EI-nS AND ASSIGNS - The benefits and obligations of this lease stall inure to and be binding upon the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, Cr of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor -as expLnined in the , ASSIGNMENTS' paragraph provided. 31. WARRANTY OF .7712 - Lessor does not -warrant title to :he leased premises, but it shall, upon request, si'_w Lessee access to such abstracts and other title papers as it has in its files. There shall be no obligation an 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 act covering :he subject lands shall become the property of and be delivered to Lessor after Lessee has completed its title examination and curative work, subject, however, to the right -0f Lessee to use such abstracts upon revues: at any time rg r, to - ni the lease. IN WITNESS 4.717I0F, Lessor has hereunto signed and caused its name to be signed by the BOARD OF COUNT: 002e1ISSiONZPS OF TEE COUNTY OF 'wt.:, with the seal of the office affixed, and Lessee has signed this agreement, -the day and year first above written. STATE OF COLORADO ) 0.4.gagty Di) Denver BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO L �f LESSEE: Amicus Energy Company LLC By LL? ?4, ? ..c"" //John A. Redeker, Manager pn f4 The regoing instrument was acknowledged before me this / day of November 1995 ',John A. Rezleker, Manager, Amicus Energy Company LLC. Witness my band and official seal. :t Cormisaion Expires: 978/g'] ot-ry Public 4275 2467454 8-1522 P-412 12/14/95 01:29P PG 8 OF 8 (Revised 5/91) g do 0,79. 952415 ski AMICUS ENERGY COMPANY LLC 1275 SHERMAN STREET, SUITE 101 DENVER, COLORADO 80203 (303)837-1668 FAX (303)837-1669 September 3, 1995 Ms. Carol Harding Clerk of the Board Weld County P.O. Box 75-8 Greeley, CO 80632 Re: NE Riverside II Weld County, CO Dear Ms. Harding: JOHN A. REDEKER, CI'1. MANAGER Will you kindly arrange for the following lands to be put on the next Weld County Oil & Gas Lease Sale: Township 5 North -Range 61 West Section 21: NE/4 Thank your for your cooperation Very truly yours, John A. Redeker cc: Rodney Knutson Chris Katselas 952415 Hello