HomeMy WebLinkAbout700003.tiff Form Bile(Producers) C OIL AND GAS LEAST' ATLOCKS °rv�fi
Kan..Okla.d Colo. I957
THIS AGREEMENT, Entered into this the. 29th -._ day of ?.liril _ , 19 70
heuverri ,;e1d County, a political subdivision of the :tz,te Of Colorado, by The Board Of
County Commissioners, for its r_spective. interest Colorado
C/O Board of County Commissioners, :old County Court 'souse, Greeley, hereinafter called lessor,
and Leland S. Vance 1645 Court f'
lum _Vent/ere COlOs'ad0 SO2CC hereinafter called lessee, does winnows:
1 Thnt lessor, for and In consideration of the sum often F, mQr _,Dollars in hand paid and of the covenants and agreements hereinafter contained
to he performed by the lessee. has this day granted, leased, and let and by these presents does hereby grant, lease, and let exclusively unto the lessee the
hereinafter described land, and with the
right
t to of unitize this lease or any part thereof with other oil and gas leases as to all or any part of the lands covered
thereby hereinafter provided.i [ the carrying geological, geophysical and other explora for work, including core drilling. e
Ii P Y p and the drilling.t onto
K casinghead oil gas, sin power gas
oline and all other gases and their respective constituent d op coerating nstructing
R producing,c laying al saving all b l dntanks, storing oil, building power st lands, telephone lines and otherstructurespthereon necessary
convenient far the economical open-inert ion of said land alone or conjointly with neigh boring lands, to produce, save take care of, and manufacture all of such
subslanew. and for housing and boarding employees, said tract of land with any reversionary rights therein being situated in the County of °.ee1d
Slate of COlorada____ and described as follows:
Township 2 North, 'enge 67 ',Jest
Section 26: NE-:: '
Section 31: The north 40' of the South 340' of the N
nna contama�6 2. 3. acres, more or less.
2. It is agreed that this lease shall remain in full force for a term of five (5 _years from this a ate. and as long thereafter as oil
or gas, or either of them, is produced front said land Ior from lands with it hich said land is consolidated or the premises are being developed or operated.
3. In consideration of the premises the said lessee covenants and agrees:
To deliver to the credit of lessor, free of cost, In the pipe line to which lessee may connect his wells, the equal one-eighth i'WI part of all oil
produced and saved from the leased premises.
4. The lessee shall monthly pay lessor as royalty on gas marketed from each well where gas only is found. one-eighth toe' of the proceeds If sold at the
well, or if marketed by lessee ff the d premises, thenone-eighth n of its market value at the well. The lessee shall pay the lessor: Pal sght[
of the proceeds' received by the lessee from the sale of casinghead gas. produced from any oil well b one eighth list of the value. at the mouth of the well,
computed at the prevailing market price of the casinghead gas produced from any oil well and used by lessee off the leased premises for any purpose or
used on the qs d premises by the lessee for purposes other than the development and operation th rot- Lessor shall have the privilege at his own risk and
expense of using gas Irons any gas well on said land for stoves tod inside lights in the principal dwelling located on the leased premises by making his
connections thereto g own
Where gas from a well or wells, capable 01 producing gas only. Is not sold or used for a period of one year, lessee shall pay or tender as royalty, an
amount equal to the delay rental as provided in paragraph 151 hereof payable annually on the anniversary date of this lease following the end of each such
year during which such gas is not sold or used. and while said royalty is so paid or tendered this lease shall be held as a producing property under para-
graph numbered two hereof.
5. It opera tionstor the drilling of a well for oil or gas arc not commenced on .sail Iona on or before the_29th day of :Ural ly 71
this tease shall terminate as to both parties unless the lessee shall cri or before said date pay or tender to the lessor or for the lea ors it s�6X•
to
Board of :cunt Commissioners ;Imes,
loners x t Greeley, Colorado board
suc-
cessors are the lessor's agent and shall continue as the depository of any and all sumothis-- - r its suscossoal wh of ownershiplKaX its id
payable under lense or
of papggs of in said
land or in the oil and gas or in the rentals to accrue hereunder, the sum I(:re :Ill 'ldyed Sixty Two Lax 43/- V V
rate as a rental and covet the privilege of deferring the commencement ofdrilling - Dollars which n like
paOcooperationsI d llIo pe rater for I r p ❑ e( one year. I like des and upon 11 by
payments tenders.- the t ofK may further 1 the
t for like periodsthrct All lessor o payments tenders may be made by
check draft f lessee any assignee- thereof, mailed delivered before the rental 1 paying date, verse not on to privilege caira or to sale da en
sa k a a [ ai a. t d a "g i ti t al ns lesaLL ❑ a e t n in. ate doon payme t d onld the thr ig grantedcoif to the date when
said first i rental is payable as aforesaid, rot or placeso the lessee's s record, Ll re I t ore g csat period as ylor : d r poy ontl f other rights described es d. Lasses mad
that my t smc exec ate and tlellver ot uchLess p, ti pf tions a be e
or releases a cob cg obligations any portion or acreage portions of the above eaft premises rentals and
Payable surrender this lease 'das to such portion or portions and r relieved covered all r as to the a surrendered. and thereafter the
Payable hereunder shall be reduced in the proportion that the acreage hereon is reduced by said release or releases.
6. Should the fit st well drilled on the above described land be a dry hole, then, and in that event, if a second well is not commenced on said land
within twelve months from expiration 01 the last rental period l'or which rental has been paid, this lease shall terminate as to both parties, unless the
lessee on or before the expiration of said twelve months shall resume the payment of rentals in the same amount and In the same manner as hereinbefore
proctled. And it is agreed that upon the resumption of the payment of rentals, as above provided, that the last preceding paragraph hereof, governing the
payment of rentals and the effect thereof shall continue in force just as though there had been no Interruption in the rental payments.
7 If said lessor owns a less interest in the above described land than the entire and undivided fee simple est ate therein. I hen the royalties and rentals
herein provided shall he paid the lessor only in the proportion which his interest bears to the whole and undivided fee. However. such rental shall be in-
creased at the next succeeding rental anniversary after Piny reversion occurs to cover the interest so acquired.
8. The lessee shall have the ht to free of cost gas, oil and water found on said land for its operations thereon. except water from the wells of
the lessor When required by lessor. the lessee shall bury as pipe Imes below plow depth and shall pay for damage caused by its operations to growing crops
on said land No tl shall be drilled r than 200 feet to the house or barn now on said premises without written consent of the lessor. Lessee shall have
the right at any time during. or after the expiration f. this lease to 11 machinery, fixtures houses. buildings and other structures placed on said
right to draw and re all Lessee premises. Including tothe tagrees, upon the completion of any lest a dry hole hi upon the abandonment of any
producing well L rest ore the plume s to their original contour i as near as practicable and to remove all installations within a reasonable time.
9. If the estate of either party hereto is assigned,and the privilege of assigning m whole or in part is expressly allowed the covenants hereof shall extend
to the heirs, devisees, executors, administrators, successors. and assigns, but no n change of ownership in the land or in the rentals or royalties or any sum
due under this lease shall be binding on the lessee until it has been furnished with either the original recorded instrument 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 p.aceedings 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 certi-
fied ne
cessary thereof in showing x complete chain of title back to lessor to the full interest claimed, and all advance payments of rentals made here-
under before receipt of said documents shall be binding on any direct or indirect assignee, grantee, devisee, administrator, executor, or heir of lessor"
19 It is herebi agreed that in the t this lease "h ll be -sgned as to a part or as to parts of the above described land and the holder or owner
of any such part or parts shall a k default the payment of the proportionate part of the e t due from him or them such default shall not operate to
defeat of affect tlia, lease insofar is a covers a part of said land upon which the lessee or any impaµnee hereof shall make due payment of said rentals.
ll. L - rXX ZXXXXXXX6 arpXXXe!XIYHW .AX x ,qye ,y vs, agrees that the lessee at its option. may discharge whole pa part ally taxes, other hens existing. levied r d t tl above described v bed lands and. in event exercisessexercisessuch option,
it shall be subsea't d to the rights of any holder or holders thereof and may reimburse itself byp
lien, any royalty or rentals accruing hereunder. applying to the discharge of any such mortgage, tax or other
12. Notwithstanding nyth 6 in this lease L d to the contrary, it is expressly agreed that if lessee shall commence operations for drilling at any
time while this lease is force. this shall remain in force and its terms shall continue so long as such operations are prosecuted and, if production
results therefrom, then as long as production continues r
If within the primary term of this lease, production on the leased premises shall cease from any cause, this lease shall not terminate provided ope-
rations for the drilling of a well shall be commenced before or on the next ensuing rental paying date; or, provided lessee begins or resumes the payment of
rentals in the manner and amount hereinbefore provided If, after the expiration of the primary term of this lease, production on the leased premises shall
cease frmn any cause. this lease shall not terminate provided lessee resumes operations for re-working or drilling a well within sixty '60, days from such
cecessation and this lease shall remain in force during the prosecution of such operations and, if production results therefrom, then as long as production
13. Lessee Is hereby expressly granted the right and privilege P which Lessee may exercise at any time either before or after production has been
obtained upon this premises or any premises consolidated herewithi to consolidate the jras or leasehold estate created by the execution and delivery of this lease,
or any part or parts thereof. with any other gas leasehold estate or estates to form one more gas operating units of not to exceed approximately 640 acres
each. If such operating unit or units Is so created by Lessee. Lessor agrees to accept and shall receive out of the gas production from each such unit such
portion of the gas royalty as thenumber of acres out of this lease placed In such unit bears to the total number of acres included in such unit The com-
mencement or completion of a well, or the continued operation or production of gas from an existing well, on any portion of an operating unit shall be
construed and considered as the commencement or completion of a well, or the continued operation of, or production of gas from a well on each and all
of the lands within and comprising such operating unit; provided, that the provisions of this paragraph shall not affect the payment or non-payment of
delay rentals with respect to portions of this premises not included Ina unit, but this lease as to such portions of this premises not included in a unit.
shall be deemed to be a separate lease. In the event portions of the above described lands are included in several units, each portion so included shall
constitute a separate lease and the particular owner or owners of the lands under each separate lease shall be solely entitled to the benefits of and be
sub
ject t obligations d.
o the f lessor under each separate lease. Lessee shall execute in writing and record in the conveyance records of the county in which
the land herein leased is situated an instrument identifying and describing the consolidated acreage.
14. 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
signed
whether such lessor Is named above t and
regardless o' whether it signed by any of the other parties herein names a s lessors This lease may be
In counterparts. each to have the n effect as the original. (see attached release rider)
a t
IN WYTNNSS,WItREOF,rwerfign)the day and year first above written. %old County Colorado, a political subdi�a9sion
Witness: 11 11 •t 1 Of The ;tote Of Colorado, by The hoard Of
by County Clerk corder_ - 7
by_
by
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