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RESOLUTION
WHEREAS, at a regularly held meeting of the Board of
County Commissioners, Weld County, Colorado, on November 13 ,
1974, Marlin Oil Company, Denver, Colorado, submitted to the
Board one (1) oil and gas lease covering 5. 37 net acres of
county owned mineral lands situate in the County of Weld and
State of Colorado, and more particularly described as shown
on customer' s draft dated November 6, 1974, marked Exhibit
A, which is incorporated herein for ready reference, and
WHEREAS, Marlin Oil Company has offered to purchase the
hereinabove described lease for the sum of $26. 85 and the
Board deems it to be in the best interest of the County that
said lease be executed in accordance with the terms therein.
NOW, THEREFORE, BE IT RESOLVED, that the Board execute
the hereinabove mentioned oil and gas lease in the form
attached hereto, marked Exhibit B, covering all the interest
which the County has in the above-described lands.
The above and foregoing Resolution was, on motion duly
made and seconded, adopted by the following vote on the 13th
day of November, A.D. , 1974.
THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
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ATTEST: Q ?
Weld County Clerk and Recorder
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Clerk to the Board
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T,eputy County Clerk
• APPROVED AS TO
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)i2P Recorded of o`clock --- -----
1648a5J-
Rec. No. +�- S. Lee Shehee Recorder
Producers 88 (272)3-63—Colorado 3-T
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT made this 6th day of _ November 1974... between
r Weld County, a political subdivision of the State Of Colorado, by the Board of County
Commissioners, for its respective interest.
c/o Bon.t,i t,i ,:,,wIty Connnissione.rs, Weld...County Court House, Greeley., Colorado
G-- Lessor (whether one or more), and Marlin Oil Company, 1507 Denver Club_.Bldg. , UP_llve r, Colorado
Lessee, WITNESSETH:
.-1 1. Lessor in consideration of Ten and..more — — — _..._ _.. — Dollars
($ _... ), 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 propose of investigating, exploring, prospecting, drilling and mining for and producing oil, gas, other hydrocarbons and.
CD without restriction to such enumerated minerals, all other minerals whether similar or dissimilar to those particularly specified herein, laying pipe lines,
, building tanks, power stations, telephone lines and other structures 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:
0
dl
rr Township 7 North, Ranee 67 West
Section 27: R.R. right of way over and across WISS4, as reserved to the County of Weld
tr) in Deed recorded in Rook 1109, Peee 158 of Records of said County.
In addition to the land above described, Lessor hereby grants, 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-
eluding all oil, gas. other hydrocarbons and all other minerals underlying lakes, rivers, streams, roads, easements and rigyts=nf-way which traverse or
adjoin any of said lands. For rental payment purposes, the land included within this lease shall be deemed to contain d i! acres,
c—� whether it actually comprises more or less. 5
2. Subject to the other provisions herein contained, this lease shall be for a term of 11Aears from this date (called "primary term") and 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 be 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; lc) 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 (50<1 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 the 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 period of one year. In like 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 in effect for successive periods of twelve (12) n onths each. p
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from this date, the lease t shall; thep
terminate as to both parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor or to the credit off Lessor llii a
of County...Commissioners...i}ID�i at. G.reeley.,...Colorado (which i a t&cVccessors are Lessor's agent
and shall continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals either by conveyance
or by the death or incapacity of Lessor) the sum of give_.and..3.7/.100- ^ - Dollars
Is 5.37 ), (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a period of
twelve (12) months In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred
for successive periods of twelve (12) months each during the primary term. 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 or before the rental paying date, shall be deemed payment as herein provided. 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 not be held in default for failure to make such payment or tender
of rental until thirty 1301 days after Lessor shall deliver to Lessee a proper recordable instrument, naming another bank as agent to receive such pay-
ments or tenders. 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 to the
acreage surrendered, and thereafter the rentals payable hereunder shall be 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 to a Lessor entitled thereto under this lease
according to Lessee's records or to a Lessor who, prior to such attempted payment or deposit. has given Lessee 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 erroneous in any regard (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 be unconditionaily obligated to pay to such Lessor the rental properly payable for the rental period involved, but this lease shall be maintained in
the same manner as if such erroneous rental payment or deposit had been properly made, provided that the erroneous rental payment or deposit be cor-
rected within 30 days after receipt by Lessee of written notice from such Lessor of such error 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 the primary term before production is obtained be a dry hole, or should production
be obtained during the primary term and thereafter cease, then and in either event, if operations for drilling an additional well are not commenced or
operations for reworking an old well are not pursued on said land on or before the first rental paying date next succeeding the cessation of production
or drilling or reworking on said well or wells, then this lease shall terminate unless 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, shall continue in force just as though there had been no inter-
' ruption in the rental payments. If during the last year of the primary term and prior to the discovery 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
roduction thereof should cease during the last year of said term from any cause, no rental payment or operations are necessary in order to keep the
lease in force during the remainder of the primary term. If. at the expiration of the primary term. Lessee is conducting operations for drilling a new
well or reworking an old well, this lease nevertheless shall continue in force as long as such drilling or reworking operations continue, or if. after the
expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force if drilling or reworking operations
are commenced within sixty 1601 days after such cessation of production; if production is restored or additional production is discovered as a result of
any such drilling or reworking operations, conducted without cessation 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 as 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. at its option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, as to oil
and 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 premises. such pooling to be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent
(IVand forty (40) acres, a for and te exceeding i six created
and forty (640) acres. ac an acreage tt of ten per cent (resc) a six hundred
and forty (640! acres for jurisdiction.
uri exceptdiiothat larger units may be bnet ac toe conform to t spacing or yll unit pattern that bov be prescribed by ga gas
mental eo authorities having a J an units so Lessee may donl rm acreage o covered bh this te,or any portion ich the. aa above provided, o to oil or gas
in any f one tr more m strata, and units formed need not conform in size with area units.with
the unit or units into which lease is pooled llnot or combined arights
to
onyf the other stratum ee e to and oil units need not conform as area ut gas units. The pooling in one or more instances not exhaent the rstru-
oments Lessee nghereunder e describing pool this lease ar thereof into creag units.Le i to a exec sh ll bri t edd o ce op record an instrument instrof
meats as if it and inuedi the pooled acreage. Thg rentire acreage so pooled tn into a unit r shall c be ftreated l for all h purposes.fro . orth except the l payment thereon
of
ofroyalties,el as a it were included in this con. and drilling orreworking purposes,
the payment thereon f production of os or gas rations w,wereone r suchtipn thereon
of r wr as shut-inco gas well a re 1 ne ce aldered for alt this leas, except the royalties, as if e operations p premises
on or such hislease.production
• In were from or such ties sh were on the land d, es by this lease, from
not the welld or wells s be located ion the oyalty stipulated covated he this lease.
un of the r etes elsewhere herein or hisi ro, Lessor lt in shallres herein team ta unitsoof l a area, only sole pnrt a of the rounityvaed. S herein as the
samount ofal his ea acreage d placed in the ini l s a the
maximum interest therein bears the total acreage sofi d.tied in sse p ay ataa u ti a e wh the u e-
fo a or t emote ioneis obi in in less than lee numberby a acres in hereiona specified,tho Lessee mn at any time thereafter,ll whether be-
thee or after g production i obtained sp on then h, vt an such unit adding additional led. aacreageeshall thereto, but theenlarged ofur shall in no exceed
the acreage a oent tiinghereinabove eicbi In the eventexisting unit n so itla provi Led. h suchexecute andplace e of record cl a supplemental f not
fi ofunitizationtiafter
identifying and describing nthe i as added to the aced.tg unit: provided. that if such supplemental dl declaration of ounitization unitization is not
filed a l ect production the is tobtained day f the a as nth e a then and in such event the supplementalc declaration tershall not
become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any
unitized area by filing of record notice of termination.
7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands with other lands in the same general
area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time. with
like approval, to modify, change or terminate any such plan or agreement and, in such event. the terms, conditions. and provisions of this lease shall be
deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and, par-
ticularly, all drilling and development requirements of this lease. express or implied, shall be satisfied by compliance with the drilling and development
requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said
above described lands or any part thereof. shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
the production therefrom is allocated to different portions of the land covered by said plan. then the production allocated to any particular tract of land
shall, for the purpose of computing the royalties to be paid hereunder to Lessor. be regarded as having been produced from the particular tract of land
to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production
only as so allocated. Lessor shall formally express Lessor's consent to any -ooperative or unit plan of development or operation adopted by Lessee and
approved by any governmental agency by executing the same upon request of Lessee.
8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of
all obligation as to the acreage surrendered. Lessee shall have the right at any time during or after the expiration of this lease to remove all property
and fixtures placed by Lessee on said land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe
lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without
Lessor's consent, The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any
operations of Lessee.
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5 9. The rights of either party her -er may be assigned. in whole or in part, and the pr ions hereof shall extend to the heirs. success
ors and
' assigns of the parties hereto, but no cha r division in ownership of the land. rentals, or rove however accomplished. shall operate to enlarge the
obligations or diminish the rights of Less. No change in the ownership of the land, or any rote. .herein, 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 betI4FNIIIMOIF—rrftA6LGYR��gg7lrfoc py MatiLa@f agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon said land, either in whole or in par n in event Lessee' 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.
12. 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 I
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 !IX'
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 I
I be inoperative and void.
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STATL'OF COLORADO, ,
County of
Weld 1. SS. Col do A nowledgment
c
The.foregoing instrument was acknowledged before me this 13th dayof
November A.D., 19 74 by
, ' Larry S. Ashley, Glenn K. Billings and Roy Moser
•
1. \t ts¢.nty band.and official seal: I
0
My/yomthission expires..) y.tali:Zi SSCOII.Fa[$YPt,S.Jaa,-2.r3,497-o /
. ary t Public.
STATE OF COLORADO,
} SS. Colorado Acknowledgment
County of
The foregoing instrument was acknowledged before me this dz, of
, A.D., 19 by
Witness my hand and official seal: -
My commission expires
Notary Public.
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, 727 161.5J31
9. The rights of either party h der may be assigned. in whole or in part, and the :ions hereof shall extend to the heirs. successors and
assigns of the parties hereto, but no ch, or division in ownership of the land, rentals, or roy s, 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 oroceedinec and all (thee nereccary evidence of any transfer. inheritance. or sale
•
gDOK
727 1648551
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.
XEXHMIHNx / MID COUNTY, ..COLORADO.,. A.-POLITICAL•SUBDIVISIO:
ATTHST:.,----"re Y OF THd STATE• •U! COLORNJO,....BY THELBOAIW...QF
oo�/ �� COIINTY_C tisuss.I tS..
COUNTY �C/URT A U��RfliCORDEL 11Y• (i/� {'L�({ �1
c! ,✓„%e c, k C ca , A..k .,72 BY.:._..,, { .t u..4/L GLL� .r
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BY: c.
STATrOF COLORADO, 1
SS. Col do A nowledgment
County of Weld
J}
13th
The'foregoing instrument was acknowledged before me this day of
November A.D., 19 74 by
,1"harry S. Ashley, Glenn K. Billings and Roy Moser
.. t4i• , - ;le
•
.a `
l; Fv71teitriv band and official seal:
Myrjr thission expires..I Y.tar,;:,iss:na.c rtS.laxr.2C,-177.0
tary Public.
STATE OF COLORADO, •
I. SS. Colorado Acknowledgment
County of 1111
The foregoing instrument was acknowledged before me this day of
, A.D., 19 by
Witness my hand and official seal:
My commission expires
Notary Public.
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