HomeMy WebLinkAbout972804.tiffg.. rat.$ —(Producers)
..olo. 1984—V
AR223267L._ .L AND GAS LEASE
This LEASE AGREEMENT is made and entered into this 2 t h
day of
November
effective on November 1 2,
. 19 9 0 , (hereinafter called "Effective Date"), by and between
V. MOORE, a Widow, of 6710 W. 28th, Denver , Colorado 80214
,1990
WILMA
(hereinafter called "Lessor", whether one or more) and
LOUIS J. GALLERY, 8989 W. 32nd P1., Wheat Rid Lessor, in consideration for dte sum of Ten Dollars ($10. 0) in hand paid, the receipt of which is herebeacknow�ledge8003and of he covenants and agreements hereinafter contained to be performed
by the Lessee, has this day 3
(hereinafter called "Lessee"),
any granted, leased and let and by these presents docs hereby grant, lease. and let exclusively unto the Lessee he lands described below ("Lased Premises"), together with
reversionary rights therein, with the right to pool or unitize the Leased Premises or an
the Lased Premises and die right to use and disturb so much of the surface thereof as may be reasonably necessary, desirable or convenient to carry out thepurposes
y pan hcruf with other hods u hereiaRer provided, wish he right of ingress and egrea on any pan of
ow.
This Lease is granted for the purpose of carrying on geological, gophysical and other exploratory work. Including ore drilling; for the ry set manufacturing and marketing all of the oil, ga, cuinghead gat, condensate, casinghead gasoline, COs. cwt -bed ga, and all other liquid hydrocarbons, and all othr e mid their
t respective constituent
vapors that may be located in or on or produced from the Leased Premises: for the purpose of operating : purpose ofrpos ins for, mining, prods, lay, scoring, saving,
pipe lines, power lines, building tanks, storing nil, building power stations, housing and boarding
wells in connection ingtelephone leh eh neenat fur Ise puu rese n the Lensed reeds, i ng nod Lionopewith
such operations and in connection with the production of any such substances from the Leased Prem esyor anees, y other ladlines sad other structures on the Laud Premises in connection with
The Leased Premises arc situated in the County of Weld
. State of Colorado
Township 1 North, Range 66 West, 6th P.M.
Section 31: Lot 1, a/d/a WNW
4
, and are more particularly described as follows
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Township 1 North, Range 67 West, 6th P.M. aJe co
Section 36: That part of the NE'* more fully n.)
described on Exhibit "A" attached hereto .,.,' co n
co
c Lam]
made a part hereof.
containing 180.00 '� o
--------- acres, more or leesN
, which number of acres shall be the number of acres used to calculate any delay rentals or shut-in royalties payable hereunder. N
The Lased Premises include all lakes, streams, roads, easements, rights
of-way and other lands which traverse or adjoin the above -described lands, and as to which Lessor owns or may claims an Z LO
interest in the mineral estate or the rights to which may hereafter be established in Lessor.
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TO HAVE AND TO HOLD the Leased Premises, subject to the other provisions herein contained, for a term of Threwme N
thereafter as any of the substances listed above is produced from the Leased Premises or from lands with which all or any pan of thcLeased Premises are pooled orDate lunitized "Primary
hether under and
has e terms ia a
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hereof or pursuant to another agreement. This Lease may also be extended past its primary term by actions or payments in lieu of production as hereinafter provided.
Lessor and Lessee agree to the following additional provisions:
U a
_ L The Lessee shall pay to the Lessor one -eighth (I/8th) of the actual proceeds received for all oil and condensate produced from the Leased Premises and sold after the
coon and after deduction of applicable transportation charges, if any. The Lessor shall bear and shall pay any other cotes Imposed on its share of production by law, .h1
. Subject to Lessee's right to use gas, free of cost, for Its operations as hereinafter provided, the Lessee shallhergof all substan on CD N
procured from the Leased Premises and sold. The royalty on such gas shall be one -eighth (I/eh) of the actual proceeds natal sod by Lessee for gas, including efthe cuinghad gat or other gaseous naendmtree, H ~
thereto entered into by and between Lessee and a gas purchaser on such terms and conditions u Lessee may in its sole judgment, exercised in \
Lessee for the ale of gas, pursuant to any contract or amendments H Hi
the net amount received by Lessee after giving effect to applicable regulatory orders and after application of any applicable price adjustntemr specified In such contract or regulatory good faith, deem appropriate. "Proceeds" chats mean Z W
J. If a gas well capable of producing gas only and located on the Leased Premises, or on lands with which the Leased Premises or a portion thereof are pooled or unitized. is, at any time, shubin,
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and no gas therefrom is sold or used, nevertheless such shut-in g ry order. 0
ions of and this Lease shall continue in force during all the time or links while such well ris all
shthe ut-In,swheherlbefore or after the eexpirahis Lease, be deemed to ation of ta well he Prithe mary TTeerm, on the following conditions:
producing gat in paying n er terms, t-i O
(U Lessee shalt use reasonable diligence to market gmethe gas capable of being produced from any such abut -in gat well, but shall be under no obligation to market such gas order terms,fill
conditions or circumstances which, in Lessee's judgment, exercised in good faith, are not In the best interest of both Laser and Lessee.
Ito) The tern "stated date" as used in this paragraph shall mean any rental paying date of this Lease, or any subsequent anniversary thereof if there be a rental paying date, but if no rental
paying date is specified in this Lease, then "sated date" shall man any anniversary date of the Effective Date of this Lease. If on any such sated dale there be on the Leased Premises or H
on ands with which the Leased Premises or portion thereof are pooled or unitized. one or more such gas wells capable ofN
of such gas wells at any lime during the twelve months period ending with such stated date, Lessee shall, before the pexpirationnof sixtygas ) only and no gas has stated do sold , or so ode from any a,.,
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gas royalty for such period to each owner of the right to receive royalty on the gas produced front any pan of the above -described lans(60)days
covered by this such
on such statedor d dated each such O1
owner's 'address as last known to Lessee, or to the credit of each such owner in the depository bank named herein, in the manner provided herein for payment of delay rentals.
(d The total asnout s of nlut.in gas royalty payable to alt such owners shall be determined by multiplying One Dollar ($t.00) by the total number of area of land covered by this Lease n
on such stated date, and each such owner shall receive that part thereof which is In the proportion that his mineral interest in the Leased Premises bears to the total number of acres or land V
covered by his Lease on such stated date; provided, however, siat if on such staled date This Lease Is being nainaned in force and effect otherwise than by reason of any such shudngas
well or shut-in gas wells, Lessee shall not be obliged to pay or tender any such sum of money as shoo-in gas royally,P0
(J) The language "a gas well capable of producing el L natural gas or condensate or distillate; ore well classified as anlas well by used anerein shall mean and Include a well capable of producing gas or natural gas only; or a well capable of producing DJ 1-+
permit liquid hydrocarbons to be produced therefrom unless theegas Is maketed. Lessee shall not bgovernmemal e required any
ce perforate well in which
he casing in a -oil rwell foatio is r suchih weh lltoqualify as a gwell authority will pable of 7
producing gas for purposes hereof, and Lessee may, in is sole discretion and judgment, cxerdsed in good faith, determine the capability of a well based upon an analysis of well logs or other E O
data, without perforation.
4. If operations for he drilling of a well for oil or gas are not commenced on the Leased Premises on or before one year from the Effective Date, this Lease shall terminate u to both panic, unless tzl
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the Lessee shall on or before such date pay or tender to the Lessor or for the Lessor's credit in the Lakeside National Bank 17
Bank. whose address Is Lakeside, Colorado (Acct. No. 408241) n
or its suecesson. The sum of --- One Hundred Eighty and no/100 ($d.1uco l' —'al and cover the privilege of deferring the conuencemenl of operations for drilling for a period of one year. Such Bank its successors are the Lefler'. agent andlshall cotntinuelaa the l operate as •depository re
of any and all sums payable under this Lease regardless of changes of ownership in the Leased Premises or in the royalties or rentals to accrue hereunder. In like manner and upon like payments or O
tenders the comtncneement of operations for drilling nay Nether be deferred for like periods successively. All payments or leaden may be made by check or draft of Lessee or any assighereof. n O
mailed or delivered on or before the rental paying date, either direct to Lessor or assigns or to said depository bank. This Lease shall not terminate in the event Lessee does not pay or tender such rentals, O Lid
or does of calculate such rentalsproperly,,but makes
recited in this Lease covers not only e privilege granted eood to the dateh ort to do so and cores such when said first rental I. payable as aforeswithin aid, bu�umys hefter Leased� optioof ns notice
Lewd that
such failure. The id and ration tint
other rights conferral,extending period as aforesaid and any and all
S. This Lease shall cover any seversioary or after -acquired interest which the Lessor may own in the Leased Premises including any Interest which the Lessor may acquire by virtue of the termination
of a life esua, tenn'minersl interest or other precedent estate. With respect to the payment of and the right to receive delay rentals and royalties (including slim-'
acquisition or vesting otsdch interest shall be deemed to have occurred on she date on which the Lessor furnishes satisfactory evidence to Lessee of such event.
Y m gas royalties), it is agreed that the
6. If prior to discovery of ditor gat on the Leased Premises or on lands pooled or unitized therewith, Lessee should drill a dry hole or holes thereon, or if after discovery of oil or gas production
thereafter should tense rgra'ru aisle; shin Lease shell no, reunions If Lessee commences additional drilling or reworking operations within ninety (90) drys hereafter, or, if it be within the primary
a muneea or rasusrks 'll�. payment or tender of rental on or before the rental -prying date next ensuing after the eapintion of throe (3) months from the date of completion of a dry hole or cessation
o. action. If at sbaaypjatiion of Me Primary Tenn, oil or gat is not being produced on the Leased Premises, or on acreage pooled or unitized therewith, but Lessee is then engaged In drilling or
reworking operations hereon, this Lease shall remain in effect so long as operations are praeculed, either on the same well or any other well thereafter commenced, with no cessation of non than
ninety (90) consecusivedays.'and If they result in the production of oil or gas, this Lease shall remain in effect as long thereafter as such production continues. It is expressly agreed that if Lessee shall
commence operations furas drilling atany time while this Lease is In force, this Lease shall remain in force and Its terms shall continue as long as such operations are prosecuted and if production results
therefrom, hen as long ion continues. Drilling operations shall be deemed to be commenced ii long as Lessee has obtained the necessary permits and financing for the well and Is making
a good effort to spud the well,e1L
Lesser only in he proportion which its Interest bean to the whole and undivided fee,
7. If Lessor owns a less interest in the Leased Premises than the entire and undivided fee simple estate therein, then the royalties, shut -In royalties and rentals herein provided shall be paid to the
IL The Lessee shall have the right to use, free of cost, gas, oil end water found on the Leased Premises for Its opeaslona thereon, except wafer from the wells of the Lessor. When required by
Lessor, the Lessee shall bury its pipe lines below plow depth and shall pay for damage caused by its operations to growing crops on the Leased Premises. No well shall be drilled nearer Jan 200 feet
to any structure now on the Leased Premises without written consent of the Lessor. Lessee shall have the right at any time during or after the expiration of this Lease to remove all machinery. fixtures,
houses, buildings and other structures placed on the Leased Premises, including the right to draw and remove all casing. Lessee agrees, upon the completion of any test at a dry hole or upon the abandonment
of any producing well, to restore the Leased Premises to their original contour as near as practicable and to remove all Gals a:ions within a reasonable time,
9. Either party hereto may assign its interest herein, in whole or in pen, and Je provisions of this Lease shall be binding upon and inure to the benefit of heirs, devisees, executors, administrators.
successors, and assign of the parries hereto. No change of ownership In the Leased Premises or In the rentals or royaltica or any sum due under this Lease shall be binding on the Lessee until it has
been furnished with either the original recorded inurement of conveyance or a duly certified copy thereof or a certified copy of the will of any deceased owner and of the probate thereof, or certified
copy of the proceedings showing appointment of an administrator for the estate of any deceased owner, whichever Is appropriate, together with all original recorded Instruments of conveyance or duly
certified copies thereof necessary to demonstrate a complete chain of title back to Lessor to the hill Interest claimed. All advance payments of rentals made hereunder before receipt of said documents
shall be birding on any direct or indirect assignee, grantee, devisee, administrator, executor, or heir of Lessor.
10, There shed be no obligation on the pan of the Lessee to offset wells on separate tracts into which the and covered by this Lease may be hereafter divided by ale, devise, or oherwise,
or to furnish separate measuring or receiving tanks. If al any time there be as many as four panics entitled to rentals or royalties, Lessee may withhold payments thereof unless and until all panics designate,
in writing, ice a recordable instrument to be filed with the Lessee, a common agent to receive all payments due hereunder, and to execute division and transfer orders on behalf of said parties, and their
respective successors In tide. -
I I. In the event this Lease shall be assigned as to a part or as to parts of the Leased Premises and the holder or owner of any such pan or parts shall make default In he payment of he proportionate
pay--,*
pan of the rent due from him or them, such default shall not operate to defeat or affect his Lease insofar as It covert a pan of such land upon which the Lessee or any assignee hereof shall make due
of said rentals.
Lessor hereby warrants and agrees to defend the tide to the Leased Premises and agrees that the Lessee, at Its option, may pay and discharge in whole or in pan any axes, mortgages, or
other „ens existing, levied, or assessed on or against the Leased Premises and, In event it exercises such option, It shall be subrogued to the rights of any holder or holden thereof and may reimburse
itself by applying to the discharge of any such mortgage, tax or other lien, any royalty or rentals accruing hereunder.
13, Lessee, at its option, Is hereby given the right and power to pool or unitize the Leased Premises, or any portion hereof, or formations thereunder, as to oil and gas, or either of them, NY
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either before or after production, with any other land, lease or leases when In lessees judgment it la necessary or advisable to do so in order no properly develop or operate the Leased Premises, and CO
regardless of whether authority similar to this exists with respect to such other and, lease or leases, such pooling to he into a unit or units not exceeding the minimum size tract on which a well may N
be drilled under laws, sales or regulations in force at the time of such pooling or unitization.N tlon. the event that no such minimum dze Is prescribed by law, such wits shall not exceed eighty (80) acres r
for oil, and shall of exceed six hundred and forty (640) acres for gas. Any such unit may exceed the minimum by up to len percent (10%) of the minimum where necessary in order to conform to
ownership subdivision or lease lines. The pooling or unitization in one or more Instance, shall not exhaust the rights of the Lane hereunder toO)
thereunder, Into other units. Such pooling shall be accomplished by Lessee executing and placing of record an instrumented instruments Identifying unitize and describing the or portions or unitized
or reagsuba
declaring such acreage to be pooled or unitized under the provisions hereof. Production, drilling or reworking operations anywhere in a unit which includes all a pan of herLeased Premises shall
be treated as if It were production, drilling or reworking operations under this LOU oo the Leased Premises. In lieu of the royalties, excepting shut-in gas royalties, elsewhere herein specified. Lessor
shall receive from a unit so formed only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled
or unitised in the particular unit Involved. In the absence of production, Lessee may terminate any pooled or unitized um by filing of record notice of Wminetion unless the instrument or Instruments
identifying and describing the pooled or unitized Ina contain provisions for termination upon certain contingencies.
14. In the Interest of conacn.s •.. the protection of reservoir pressures and recovery of the greatest ultimate pcld of oil or gar :. •.e shall have the right to combine the Leased Premises with
other premises in the general area lot the purpose of operating and maintaining reprenuring and recycling fseililiea, and for such purpot may locate such facilities. Including injection wells, upon the
Leased Premises, and no royalties shall be payable hereunder upon any gas used for repressudng and recycling operations benefiting the Leased Premises.
IS. Lessee may. at any time, and form time to time, exeeon' and deliver to Lessor or place of record a release or releases covering either a MI interest or an undivided interest in all or any pan
of the Leased Premises or in any one or more zones, formation., or depth underlying all or any pan of the Leased Premises and thereupon shall be relieved of all obligations thereafter to accrue with
respect to llw area, zones, formations, depths or undivided interests covered by such release. In the event of a release of this Lease as to all rights in only • pan of the area embraced In the Leased
Premises, or a to an undivided interest in all formation in all or a pan of the Leased Premises, thereafter the delay rentals hereinabove provided for shall be reduced proportionately.
16. When drilling• production or other operations are .1 l yeti, Interrupted or stopped by lack of water, labor. material. Inability to obtain aceen to the Leased Premises, fire, flood, war, rebellion.
insurrection, dot, strike, differences with workmen, failure • I carriers to transport or furnish facilities for transportation of any product produced hereunder, lack of available or satisfactory market.
in Lessee's opinion, for the oil or gas produced, or as s t ::: f an order of any governmental agency (including, but not limited to orders restricting productions or as a result of any cause beyond
the control of Lessee, the time of such delay, Interruption or stoppage shall not be counted against' the Lessee under any provision of this Lease, and this Luse shell not terminate by reason of any
such delay. interruption or stoppage, and the period of such delay, interruption or stoppage shall be added to the term of this Lease.
17. This lease and all its terms, conditions and stipulations shall extend to, and be binding on each of the parties who signs this Lease. regardless of whether such Lessor is named above and
regardless of whether It is signed by any of the other parties herein named as Lessors. This Lease may be signed in cotmteryans, each to have the tame effect as the original.
IN WITNESS WIIEREOF, the undersigned Lessor([) have executed this Lease as lessor es of the Effective Date set forth above.
18. Lessee agrees to fence in all wells and �;/ �/
egai-psnent f_rtaining thereto. i•`�L f
Wilma V. Moord,�' a�`Sidow
S.S. No.: 327-05-1827
B 1282 REC 02232870 11/13/90 12:16 x15.00 2/003
F 0419 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Plorado
S1ATt. (1Ft.L.T. ='s Oklahoma, Konsas, New Mexico, Wyoming, Montana, Colorado, Utah,
Neb
raska, North Dakota, South Dakota
COLINTX Iv tiCf*'SOn ss. ACKNowLIi ioNtENT—TNDIVIDUAI.
\\JIH Zt
'� j11 C`F .t;idiipiticrsigncd, a Notary Public, in and for said County and State, on this 12th
.fir te!Pti 8 "t' 0°44 r , 19 90 , personally appeared Wilma V. Moore, a Widow
? N.••
.. • cc
" c O F; G O ON'
and "Ph ... t
n
, to me known to be the identical person --- , described in and who executed
the within and foregoing instrument of writing and acknowledged to me that ohs duly executed the same as hpr free
and voluntary act and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOPa1 have hereunto set my hand and affixed my notarial seal he he day and year last above written.
My Commission Expires September 5, 1992 s►rNt--
Notary Public.
Address:
8989 W. 32nd P1.
Wheat Ridge, CO. 80033-5859
STATE OF _ ACKNOWLEDGMENT (For use by Corporation)
sot.
COUNTY OF JJJ
On this day of A D 19 before me personally
appeared - to me personally known, who, being by
me duly sworn, did say that he is the —of
and that the seal affixed to said instrument is the corporate seal of
said corporation and that said instrument was signed and sealed in behalf of said corporation by authority of its Bpard of Directors, and said
acknowledged said instrument to be free act and deed of said corporation.
Witness my hand and seal this day of , A.D. 19_
(SEAT.)
My Commission expires
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Address:
Notary Public.
This instrument was filed for record on the
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of the records of this office.
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9'72804
B 1282 REC 010'870 11/13/90 12:16 00 3/003
F.0420 MARY FEUERSTEIN CLERK & RECOR.'WELD CO, CO
EXHIBIT "A"
ATTACHED TO AND MADE PART OF THAT CERTAIN OIL AND GAS LEASE
DATED November 12, , 19 90 , EFFECTIVE ON November 12
19 90 , BY AND BETWEEN WILMA V. MO0RE, a Widow
LESSOR(s) and LOUIS J. GALLERY
, LESSEE.
Township 1 North, Range 67 West, 6th P.M.
Section 36: Part of the NEI more particularly described as: Beginning
at the Northeast corner of Section 36; thence South to the
East Quarter corner of said Section 36; thence South
88 37'40" along the South line of the NEI 1813.63 feet;
thence North 00°16'20" East 1343.05 feet; thence North
89°25'20" East along the North line of the SW4 of the NEI
484.65 feet to tdhe center of the NEI of said Section 36;
thence North 00 07'20" East along the West line of the E₹
of the NEI 1336.35 feet to a point on the North line of
said Section 36; thence South 89 ° 49' East along the North
line of the NEI 1319.25 feet to the true point of beginning.
EXCEPT: 3.49 acres as conveyed in the SWINE+ by instrument
recorded in Book 650 Reception Number 1572480 in the official
records of Weld County, State of Colorado.
Signed for I en i i ion•
Wilma V. Moore, Lessor
4.;:aerizrz--
Cortland P. Brown, Agent for
Lessee
972894
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