HomeMy WebLinkAbout740002 Producers 88 (272) -sa--Colorado
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT made this. 5th day of _. __. August _. 19._.74. between
WELD COUNTY, a-political subdivision of The State of Colorado, by The Board of County
Commissioners, Weld County, Colorado, for its. respective interest, County
Commissioners,- Weld -County-Court -House, _Greeley, Colorado 80631
Lessor (whether cane or more), and Amoco_.Production Company, Security Life..Building, Denver, Colorado 80202
Lessee. WITNESSETII:
1. Lessor in consideration of Ten_.and more... _. _. Dollars
($ 10.010-+ zDore-), in hand paid of the royalties herein provided and of the agreement of Lessee herein contained, hereby grants, leases and lets
exclusively unto Lessee for the purpose of investigating exploring, prospecting. drilling and mining for and producing oil, gas, other hydrocarbons and,
without restriction to such enumerated minerals, all other minerals whether similar or divimilar to those particularly specified herein, laying pipe lines.
building tanks, power stations, telephone lines and other struchu es thereon to produce, save, take care of, treat, transport and own said products, and
housing its employees. the following described land in Weld - - - County. Colorado, to-wit:
Township 3 North, Range 66 West
Section 20: W/2 NW/4
r
v
of Section _ __. , Township...... '- _.. __. . , Range...
In addition to the land above described. Lessor hereby grunts, leases and lets exclusively unto Lessee to the same extent as if specifically
described herein all lands owned or claimed by Lessor which are adjacent contiguous to or form a part of the lands above particularly described, in-
cluding all oil, gas, other hydrocarbons and all other minerals underlying lakes. rivers, streams, roads, easements and rights.of-v{�ye which traverse or
adjoin any of said lands. For rental payment purposes, the land included within this lease shall he deemed to contain... 8 .VV _._._.acres.
whether it actually comprises more or less. V(f (�� pq,� oft sp i7 9� Q
2. Subject to the other provisions herein contained. this lease shall be for a tern�tlYw`'''�Cm6 �fdaltFS rpfirna?Pt rm'"j 7a d as long
thereafter as oil, gas, other hydrocarbons, or other mineral is produced from said land hereunder, or drilling or reworking operations are conducted
thereon.
3. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the
wells, or to the credit of Lessor into the pipe line to which the wells may he connected, Lessee may from time to time purchase any royalty oil in its
possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or
other hydrocarbon substance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products therefrom.
the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one-eighth of the amount
realized from such sale; tc) on all other minerals mined and marketed, one-tenth either in kind or value at the well or mine, at Lessee's election, except
that on sulfur the royalty shall be fifty cents (sot') per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except
water from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting any so used. If a well capable
of producing gas in paying quantities is completed on the above described land and is shut in this lease shall continue in effect for a period of one
year from the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for :he payment or tender of delay
rentals. pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of$100.00 per well, and, if such payment or
tender is made, this lease shall continue in effect for a further aeciod of one year In 1-e manner and upon like payments or tenders annually, made on
or before each anniversary of the shut-in date of such well this lease shall continue 'n effect for successive periods of tijvv�eelve�t}2 ont
4. If operations for drilling are not commenced or said land as hereinafter provided. on or before one year from j��)2¢Fgle ll then
nand
terminate as to both parties, unless on or before such anniversary date Lessee shalt
pay or tender to Lessor or to the credit o Lessor LLL= B
�a el15A�RXsu d ''fl"€h depossolQuy or atau ce1Gieel ,heCo Colorado regardless ii changes in ownership wfo sai�rd ord the rental'ssors eitherebyessor's conveyaent
nce
or by the death or incapacity of Lessor) the sum of. Eighty..and no/100 _.. _.. _._...__. Dollars
is 80.00 ), (herein called rental], which shall cover the privilege of deferring commencement of operations for drilling for a period of
twelve 1121 months In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred
for successive perods of twelve t12) months each during the primary t tm The payment or tender of rental herein referred to may be made in currency,
draft or check at the option of the Lessee; and the depositing of such currency,draft or check in any post office,properly addressed to the Lessor.or said
-�.. bank, on -before the rental paying date, shall be deemed payment as herein provid, i. If such bank for any successor bank) should fail, liquidate or be
succeeded by another bank, or for any reason fail or refuse to accept rental, Lessee shall nut be held in default for failure to make such payment or tender
of rental until thirty (3(1) days after Lessor shall deliver to Lessee a proper recordable instrument, naming another bank as agent to receive such pay-
ments or tender,der, The down cash payment is consideration for this lease according to its terms and shall not be allocated as mere rental for a period.
Lessee may at any time execute and deliver to Lessor or to the depository above named or place of record a release or releases covering any portion or
portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as In the
acreage surrendered, and thereafter the rentals payable hereunder shall lie reduced in the proportion that the acreage covered hereby is reduced by said
release or releases-
If Lessee shall. on or before any rental date, make a bona fide ,attempt to pay or deposit rental Ic a Lessor entitled thereto under this lease
according Lessee's records or to a Lessor who prior to such attempted payment or deposit, has giver I essee notice, in accordance with the terms of
this lease hereinafter set forth of his right to receive rental, and if such payment or deposit shall be e' eaeous in any regard I whether deposited in the
wrong depository, paid to persons other than the parties entitled thereto as shown by Lessee's records, in an incorrect amount, or otherwise). Lessee
shall he unconditionally obligated to pay to such Lessor the rental properly payable fur the rental period involved. but this lease shall be maintained in
the same manner as if such erroneous rental payment or deposit had Imen pope ly made, provided that I h erroneous rental payment or deposit be cor-
rected w,,hin 30 days after receipt by Lessee of written notice from such Lessor of such er.nr:Accompanied by any documents and other evidence neces-
sary to enable Lessee to make proper payment.
5 Should any well drilled on the above described land during die priniar,,a c before production is obtained be a dry hole, or should production
be oWained during the primary team and thereafter fter e e then and in either event, f operations for drilling an additional well are riot commenced or
operations for reworking an oId well are not pursued on: said land en or before the first rental paying date next succeeding the cersation of production
or drilling or reworking on said well or well-, then this lease shall to rnin.ile unle s Lessee. on Or before said date shall resume the payment of rentals.
Upon resumption of the payment of rentals. Section 4 governing the payment of rentals, shai! continue in force just as though there had been no inter-
ruption in the rental payments- If during the last year of the primary tern: and poor to the dscovery of oil, gas. or other )hydrocarbons on said land
Lessee should drill a dry hole thereon or if after discovery of oil, gas, or other hydrocarbons before or during the last year of the primary term the
pry,dwction thereof should cease during rho last year of said term tom) a -u e, no rental pa art or Operations are necessary in order to keep the
lease in force during the recta ode- of the primary term If at the exiAration of the primacy erne Lessee is conducting operations for drilling a new
well or reworking an old well, this lease never 'neles shall continue -n force as long as such drilling or reworking operations continue, or if, after the
explran on of the primacy term. production on this lease shall cease, this lease nevertheless shall continue in force if drilling or reworking operations
are commenced wthur sixty 601 days after suck cessation of p -h het n: if production is restored or additional production is discovered as a result of
any such drilling or rcwoiking operations,tiers, conducted without ce -lion of more than sixty (60) days. this lease shall continue as long thereafter as oil,
gas, other hydrocarbons or other mineral is produced and as long s additional drilling or reworking operations are had without cessation of such drill-
ing or reworking operations for more than sixty .60) consecutive days.
6- Lessee a t its option. is hereby given the right and power to pool or combine the land crvered by this lease. or any portion thereof, as to oil
'old gas. or either of them, with any other land, lease or leases when in Lessee's Judgment it is necessary or advisable to do so in order to properly
develop and operate said premses. such pooling to be into a well unit r units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent
110;1 I of forty .40) acres, for oil, and not exceeding six hundred and forty x640) acres, plus an acreage tolerance of ten per cent Ito'; I of six hundred
and holly t1401 acres, for Feu except that larger units may be ct d cont.irrn to any pacing or well unit pattern that may be prescribed by govern-
mental authorities flaying j m:'sd shone 1 see »lay pool or combine:nocraze covered by this lease,or any portion thereof, as above provided, as to oil or gas
in any one or moth strata, and units sn formed need not co to area with the unit u units into which the lease is pooled or combined as to
any other stratum strata, and l mite ne d of conform s l ,with gas units, the pooling in one or more instances shall not exhaust the rights
of the Lessee hereunder to pool this lease cr portions thereof inh,ouuer ,uls-Lessee shall exende a 6ti. and place of record an instrument or instru-
ments identifying and desclihiig the pooled acreage- The entire arieuge so pooled into a unit shall be treated for all purposes, except the payment of
royalties, as if it stein included in this lease, and drilling or reworking operations thereon or production of oil or gas therefrom, or the completion thereon
of a well as a shut-in gas well, shall be considered for ail pmpo es, except the payment of royalties, as if such operations were on or such production
were nom or such ecomplettou were on the land covered by this lease whether or not the well or wells be located on the premises covered by this lease.
In lieu of the revselsewhere herein specified. Lessor shall receive horn a snit so formed, only portion of the royalty stipulated herein as the
amount c i his acreage placed in the unit'Jr his royalty interest thereto Incurs r' o the total acreage pooled in the particular unit involved.Should any unit
as originally created hereunder contain less than the maxth.rurn n n nhei of acres here ,,above specified_then Lessee may at any time thereafter,whether be-
fore or after pr,,cluction is obtained or the unit, enlarge such unit by adding additon l acreage thereto, but 'he enlarged unit shall in no event exceed
the la cage content hereinabove specified In the event an existing unit is so enlarged Lessee shall extmule and place of record a supplemental declara-
tion of unitization identifying and describing the land added to the existing nil- provided, that if such supplemental declaration of unitization is not
filed until after production Is obtained on the unit as originally created then and in arch event the supplemental declaration of unitization shall not
become effective until the first day of the calendar month nest following the filing thereof. In the absence of production Lessee may ,erntinate any
unitized area by filing of record notice of termination.
7. Lessee also shall have the right to unitize, pool ir combine bine all or any part of the abovc described lands with th lands in the same general
area by entering into a cooperative or unit plan of development or operatlon approved by any governmental authority and from time to time with
like approval, to modify. change or terminate ane such plan p m t and. in such even,. the terms. a inditions and provisions of this le se shall be
deemed modified to conform to the terms conditions and urns un; fsurh oporoved cooperative or unit plan of development or operation and par-
ticularly, all drilling and development requhrenen s of this e se express or implied shall he all ished 1 s -'camp lilmee with the dulling and development
requirements of such plan or agreement, :nd this lease shall not turmin,de or expire doom; Me f or So.h plan or agreement In the event that said
above described lands or any part thereof, shall hemeattel be operated ondorany soch o p 'aa unit plan h f development or operation hereby
the production therefrom is allocated ted to different portions of the I cnvezed by said pima. tl r. the ed ctien allocated to any particular tract of land
shall. fur the purpose of computing the royalties to be paid hereunclm to Lessor, b leganiea tiamne been moduced from the pat ticular hart of land
to whirls it is allocated and not to any other tract of land: and nieI y payment, to be made Inneunder to Lessor shall be based upon production
only as so allocated Lessor shall formally express Lessons cnso en, r any craper.t .e or unit plan of development or operation adopted by Lessee and
approved by any governmental agency by execut sob the dame up,, moquea of Lessee.
8- Lessee shall have the right at any time withom Lessor', consent to curie curiendec all portlim of the leased premises and be relieved of
all obligation as to L the acreage surrendered Lessee shall have the right - n anv time t rg niter the -sl i.-atron of this lease to remove all property
and fix) res placed by Lessee on ,tad land, including lb right to draw and ra mom. aP When required by Lessor, Lessee will bury all pipe
tees brst ordinary plow deatr cad n well t a be drilled w 1 e hand u -:a o few residence m barn now on said land without
Lees consent The Le see. agrees to Prc.n t pay to she hw.ri 'eat I-:n'. 1t r ire r. ta, caused be m resulting from :n
operation,:of Lessee - cap-tg any
740002 /....660&47
9 The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and
assigns of the parties hereto, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the
obligations or diminish the rights of Lessee. No change in the ownership of the land, or any interest therein, shall be binding on Lessee until Lessee shall
be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale
of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among
the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obligations with respect to the assigned por-
tion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders. Rules or Regulations. and this
lease shall not be terminated, in whole or in part. nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by. or if
such failure is the result of, any such Law, Order. Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes. inability to
obtain material, failure of transportation, or other cause beyond the control of Lessee.
If, during the term of this lease, oil or gas or other hydrocarbons or other mineral is discovered upon the leased premises, but Lessee is prevented
from producing the same by reason of any of the causes set out in this Section. this lease shall nevertheless be considered as producing and shall continue
in full force and effect until Lessee is permitted to produce the oil, gas, other hydrocarbons, or other mineral and as long thereafter as such production
continues in paying quantities or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor k ' ' ' - ' agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon said land either in whole or in part, and in event Lessee does so, it shall be subrogated to such lien with the right to enforce same and
apply rentals and royalties accruing hereunder toward satisfying same. Without impairment of Lessee's rights under the warranty in event of failure of
title. it is agreed that if Lessor owns an interest in said land less than the entire fee simple estate, then the royalties and rentals to be paid Lessor shall
be reduced proportionately.
All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators. successors and
assigns.
This agreement shall be binding on each of the above named parties who sign the same, regardless of whether it is signed by any of the other
parties.
IN WITNESS WHEREOF, this instrument is executed on the date first above written. (SEE REASSIGNMENT RIDER ATTACHED)
IUDDENNIK ATTEST: WELD_COUNTY,_..a political subdivision of I'he
. State .o.f..Colorado, by The Board of County
By • t •
fl )0_2.4isyC , � C (
C,qunty Clerk and Rec rder By kLc s,
pc /STATE ofCOLORADO, i By
l
} SS olora�o Acknowledgment
County of WELD
111
The foregoing instrument was acknowledged before me this 2.8.th day of
August , A.D., 19 74 by Harry S. Ashley,
Glenn-_.-K. Bill-ing.s., &-...Roy--Moser
Witness my hand and official seal:
My commission expires My Commission expires tan. 26, 1916
Notary Public.
STATE OF COLORADO,
I. SS. Colorado Acknowledgment
County oE_--_._- .....
m. 1 I. 1.....) L..l..,,.. .�.. •L:..
Upon the termination of this lease in whole or in part by election or by
failure to make payments as aforesaid, lessee or his assigns shall within
30 days release by written instrument the land or portion thereof which
said lease terminates, and said notice shall also be sent to the lessor
giving the book and page of said lease. It is expressly understood that
this lease is subject to and controlled by any law of the State of Colorado
now in effect restricting or limiting the powers of Counties or boards of
County Commissioners and provision herein in conflict therewith shall be
inoperative and void.
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