HomeMy WebLinkAbout710003 AUTHORIZING OIL AND GAS LEASE # 570
COVERING CERTAIN COUNTY MINERAL LANDS
TOWN OF FIRESTONE - SECTION 30 TOWNSHIP 2 NORTH
RANGE 67 WEST OF THE 6th P. M. , WELD COUNTY, COLORADO
AMOCO PRODUCTION COMPANY - EXPIRES DECEMBER 15, 1976:
WHEREAS, the County of Weld, State of Colorado, is the owner of vast
acres of mineral lands in Weld County, and
WHEREAS, a portion of said mineral acres presently are not leased,
and
WHEREAS, the Amoco Production Company, Security Life Building, Denver,
Colorado, has offered to lease a certain block of County mineral lands, containing
49.03 net mineral acres, more or less, and to pay therefore$5.00 per net mineral acre,
for the execution of the necessary leases with annual delay rentals of $1.00 per net
mineral acre after the first year, and
WHEREAS, it is desirous and in the best interest of Weld County to accept
said offer to lease the requested mineral acreage.
NOW, THEREFORE, BE IT RESOLVED, by t'.ie Board of County Commissioners of
Weld County, Colorado, that the offer of the Amoco Production Company as hereinabowe
recited, be and it is hereby accepted, for a term of five years, and
BE IT FURTHER RESOLVED, that the County mineral acreage in each are as
listed below:
That Portion of the Town of Firestone, situated in the NW't of Section
30, Township 2 North, Range 67 West of the 6th P. M. , Weld County, Colorado
Block 3: Lots 1 thru 20
Block 4: Lots 1 thru 20
Block 5: Lots 1 thru 20: 23 thru 40
Block 6: Lot 30 except beginning at the SE corner, N75' , W2' , thence SWly
to the SW corner of Lot 30, thence E25' to Point of Beginning
Block 8: Lots 1 thru 40
Block 9: Lots 1,2, and 16
Block 10: Lots 21 thru 24: 30 thru 32: 25, 26
Block 11: Lots 1 thru 20; 25,26: 33 thru 40
Block 12: Lots 1 thru 23: 28 thru 40
Block 13: Lots 1 thru 40 (all)
Block 14: Lots 8, 11, 12: 21 thru 26
Block 17: Lots 1 thru 6: 15 thru 20: 25 thru 32
Block 18: Lots 1 thru 40 (all)
Block 19: Lots 1 thru 40 (all)
Block 20: Lots 1 thru 40 (all)
Block 22: Lots 1 thru 18: 27 thru 40
Block 23: Lots 1 thru 34
Block 24: Lot 33
The above and foregoing resolution was, on motion duly made and seconded,
adopted by the following vote:
AYES:/
7 l6
THE BOARD Of COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
DATED:DECEMBER 15, 1971
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,< 0K 659 Recorded en
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Producers 88(272)s-en—Colorado Rec.No___________ ,.V C
.__.Ann Soc.mer,(scorch
OIL, GAS AND MINERAL LEASE - - -
THIS AGREEMENT made this 28th day of October 19.._-Ft,between
WELD-COUNTY,-_A-POLITICAL SUBDIVISION OfTHE STATE--OF-COLORADO,-BY THE BOARD-OF
COUNTY COMMISSIONERS, FOR ITS RESPECTIVEINTEREST
C/O-.HOARD-Of___COUNTY...COMMISSIONERS,...WELD-COUNT.Y...COURT.._HOUSE, GRE€LEY,....COLORA-DO
Lessor(whether one or more),and_AMOCD-PRODUCTION.._COMPANY,.SECURITY--LIFE-BLDG..,.-DENVER, COL';+RADO
Lessee,WITNESSETH:
'u 1 1. Lessor in consideration of «__Ton-Auld Mora.... Dollars
($ 10.00...R...More_) r hand paid of the royalties herein p guided,and of the agreement of Lessee herein contained,hereby grants,leases and lets
-,\ exclusivelys unto Lessee for the purpose of investigating,exploring,prospecting,drilling and mining for and producing oil,gas, ther hydrocarbons and,
jthoutrestriction to s ch enumerated m erals, llother mineralswhether similar orc dissimilar to those partiecatlat=ay specified herein,laying pipe lines,
building rtanks,power stations,telephone clines and other structures thereon to produce,save,take ca ff port and own said products,and
housing its employees•the following described land in WELD County,Colorado,to-wit:
(See attached description rider)
sibeatbot Islet**
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-
cluding all oil,gas,other hydrocarbons and all other minerals underlying lakes.r streams.roads,easements and rights-of-way which traverse
adjoin any of said lands.For rental payment purposes,the land includedfivers, asem or
whether;t actually comprises more or less. within this lease shall be deemed to monta;n_..._-43,03 acres,
2. Subject to the other provisions herein contained,this lease shall be for a term of #ers from this date(called"primary term")and as long
thereafter as oil,gas.other hydrocarbons,or other mineral is produced from said land he der,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
ayi the
substance,price
therefor prevailing
iling for thefield f where e produced on the date of purchase; (b) on gas,including ca Inghead gas or
y and 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 soldor 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@)per long ton.Lessee shall have free use of all,gas,coal,wood and water from said land,except
water from ggLessor's wells,for q all operations hereunder,and the royalty oil and gas shall be computed after deductng ay used.If a well capable
of
producing
the date in
such anfhiesiis completed on the above described land and is shut in.this lease shall continue in effect for period of one
any assignee may thereafter,in the manner provided herein for the payment or tender of delay
rentals,pay or tender to Lessor es royalty,on r 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)months each.
4. If operations for drilling are not commenced on said land as hereinafter provided,on o before one year from this date,the lease sh ll then
terminate as to both parties,unless on or before such anniversary date Lessee shall pay or tender to Lessor or to the credit of Lessor'
�4y, anyy,s♦�� �f^" tttt�j�.sqq■�y..�O/,��®�yram� yy{rp� s g�a ]may fp. tt� a. �p.�t xx-.st.._�oard
Rtel SNe]itMtinicgir1fi.)0SIS 95fitr alit/ A pl bCVneekgrRregal` es3 ranges in ownership(of 5 1 the rent Ireit are by Less 'ssame
or the rentals either conveyance
or by the death or incapacity of Lessor)the sum of_Forty•Aline,•and•03/100.. am wawa_--...—_.r..Dollars
(7..49.03 1.(herein called rental),which shall cover the privilege of deferring commencement of o er goes for drilling for a period of
months. n twelve( ) In like a 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 ncy,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(or any successor bank)should fail,liquidate or be
ceded 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
ofc rental until thirty(30)days after Lessor shall deliver to Lessee proper recordable instrument,naming another bank agent toreceivesuch pay-
ments or tenders.The down h 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 executepp d deliver to Lessor or to the depository abovenamed or place of record a release or releases covering any portion or
portion surrendered,above
described
thereafter the rentals
thereby surrender this lease as to such portion or portions and be relieved of all obligations to the
release o releases.
n payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced s by said
If Lessee shall,on r 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, given
i Lessee notice,in accordance dance with the terms of
this lease hereinafter set forth,of his right to receive rental,and if h payment or deposit shall be erroneous in any regard(whether deposited in the
wrong depository,paid to persons other than the partiese entitled thereto as shown by Lessee's records,in an amount,
incorrect. m t, therwise),Lessee
shall be unconditionally obligated to pay to such Lessor the r tal properly payable for the m rental period involved,but this lease shall be maintained
the same warmer 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
o 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 P5in the a tal payments.If during the last year of the primary term and prior to the discovery off oil,gas, other hydrocarbons on said land
Lessee should drill dry hole thereon, oil, y if after discovery of gas,or other hydrocarbons before during the last year of the primary term the
production thereof should cease during the last year of said term from any cause, rental payment or operations are necessary in der to keep the
a 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 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 neverthelessshall continue in force if drilling or reworking operations
commenced within sixty(60)days afters h cessation of production;if production is tored or additional production is discovered as result of
any such drilling or reworking operations,conducted without cessation of more than sixty(60)days,this lease shall continue as long thereafter a oil,
ga other or ydro operations the mine ral is
ss producedixty ce consecutive ndsongdas aditional drilling or reworking operations are had without cessation of such drill-
ing 6. Lessee,at its option,is hereby given the right d power to pool or combine the land covered o by this lease.or any portion thereof,as to oil
and gas,or either them,with any other land,lease or leases when in Lessee's judgment it is necessary advisable to do in order to properly
dev
elop and operate said premises,such pooling to be into a well unit or units not exceeding for (40)acres,plus acreage tolerance of ten per cent
)ld f)of forty
(640)(40)acres.for gas,fa oil,exc and not
lar exceeding s six
m hundred
be and
s foctyf(6400)tocr s,plus an acreage tolerance of ten per cent(10%1 f s' hundred
mental forty
sacres,having jurisdiction.Lesseeger y or combine acreage any pea or wyll unit pattern that may be prescribed by gov or gas
may pool covered thisnilease.or any portionn which thereof.a above ooled or o to oil oa gto
in ststrat and nits so tsrnied'ne a not rmhf s ti i gas with th uno r amts to mrthe lease is shall pled a pmt the as is
o yn ih es stratumhere o errtoa,a d it nits r pdo ofc form as o areater unit gas units.The ecut rig in i o r ins, recrd not exhaust the rights
theoto Lessee hereunder and
s pool lease portions thereof into other so e i hall execute ritingtand placeall of record an instrument the payment tro-
enls;semi if it and describing the spooledase o pooled r a r p shall oe treatedo fgrh purposes. t sect ape Cher of
of royalties,as a it were included in this lease,acreage.
redrfora entire acreage
operationsttpayment thereon f oyalt es, of oil or gas ra ionso r one mpch[ipn thereon
ofw rll as a shut-ino gas well,shell be considered for I]purposes,,ex pt thenot gorillas,as if such goon the premises se h p learn
e fro r ooh iesr elsewh re on the Jana esds rbyo this]ease, nomea o nos the welld o ass he for ion the oals stipulated
by this lease.
In lieuamount
of the royalties elsewhere herein o his ro royalty
shall receive therein from toa unit sototal
formed,only such portion of the royalty stipulated herein as the
as o igi al his acreage placed in the unit or his heltm interest number
bears c s the total acreage d.tied the particular any unit a Ie h any unit originally created rdeion is hereunder contain less than the ge mbar gs additional
acreage specified,eto, Lessee ny rg ti thereafter,wil0nwhether be-
fore agar production i brained on then 'h,event ansuchex unit u addingis en ir e shall execute
but the of nor shall event exceed
the acreage content hereinabove niingspecified.In the event existing unit o enlarged.r Lessee such su andplacee of record ti a supplemental funitization
is not
file of unitization identifying andt describing th the ions added to l the aced.tgenunit;o provided.that if such plemental dl declaration
of unitization unitization ll not
feco a el after pun t it brained the nda as nthinext ollowin t the and in ach a ant the bsence of pl ducliontiLe se ye shall a not •
become effective by until the o y of the rminatr month next following the filing thereof. In the absence of production Lessee may terminate a
unitized area by flng 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 c perative or unit plan of development or operation approved by any governmental authority and,from time to time,with
like approval,to modify.f and
terminate any such plan or agreement and,in eve
nt,
such a t,the terms,conditions.and provisions of this lease shall be
deemed modified to conform to the terms,conditions, provisions of such approved cooperative nit plan of development or operation and.par-
ticularly.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 e
described lands or any part thereof.shall hereafter be operated under nys h 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 royaltty 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 c perative or unit plan of development or operation adopted by Lessee and
approved by any governmental agency by executing the same upon request of Lessee.
08.Lessee shall have the right at any time without Lessor's consent
to surrender tir during
or after portion of the leased premises and be relieved of
all obligation as t theacreagesurrendered.Lessee shall have the any g or expiration of this lease to remove all property
and fixtures placedby Lessee said land,including the right to draw andremove all sing.When required by Lessor. Lessee will buryall pipie
lines below ordinary plow depth,and no well shallbe drilled within two hundred (2001 feet of any residence or bar said land without
Lessor's consent.The Lessee agrees to promptly pay to the owner thereof any damages to crops, o improvements, caused by or resulting from any
operations of Lessee.
12. Notwithstanding any provision of this lease to the contrary, no operations shall
be conducted on the above described land without the written consent of lessor.
13. 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 Countes
or boards of..County Commissioners and provision herein in conflict therewith shall
be inoperative and void. •
•
✓) r! >1 •
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. Lessorgagergnm y n gtheli �aryipp agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon said lali either 1H-Whb dr[R� �
affrITS'e1rlR'ZAT3..i�gN'dtl24'S0, 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.
pmt: WELD COUNTY.,_COLORADO,...A POLITICAL..SUBDIVISION
ATTEST .-iLt-ti÷rneste OF _.. 5 ATE OF COLORADII*...H. ... E _BOARD OF
C OMM
BYt
£ONNTY-CLERK AND RECORDER B t
>�/' "".`/De�i:',' Corn Py G,tr: BYt (et_r ,���� ��t�
STATE OF C°6E
WELD S. Colorado Acknowledgment
County of l
The foregoing instrument was acknowledged before me this 15th day of
December , A.D., 19 71 by Marshall H. Anderson, Glenn K. Billings
and_Harry_..$.....Ashley,...The BR.a.d of County Commissioners, Weld County, Colorado
Witness my hand and"9ficial seal:
a��' itit / �7
My commission expires r /.......... L�,._.
. v .
/ Notary Public.
,f /ter/
STATE OF COLORADO,
SS. Colorado Acknowledgment.
County of
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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