HomeMy WebLinkAbout740006.tiff Producers 83 (272)a as—Colorado
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT made this ........5th.. ....day of August.. _._. 19 7.4between
Weld County, apolitical .subdivision.of the. State of_Colorado, by .the Board_.of_C ounty
Cufmnissioners, for. its_respective_interest., c/o_Board of County Commissioners,...Weld County..
Court Bouse,_.Greeley, Colorado.._80631
Lessor (whether one or more), and Amoco...Production Company, Security. Life_Bdlg. , Denver,. Colorado 80202
Lessee, WITNESSETH:
1. Lessor in consideration of Ten_and..more _..... .. .._._. _...''Dollars
($.10.00 + more ], 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 dissimilar to those particularly specified herein, laying pipe lines.
building tanks, power stations. telephone lines and other structures thereon 10 produce save, take cure of, treat, transport and own said products, and
housing its employees, the following described land in __ Weld _ County, Colorado, to-wit:
Township 2 North, Range 67 West
Section 26: S/2 NE/4
Section 31: The North 40 feet of South 340 feet of NW/4
of Section..... _... , Township. __._.. _ ._ , Range_.. ..
In addition to the lard 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 'rd isant cuntiguous to or form part of the lands above particularly described, in-
cluding all oil, gas. other hydrocarbons and all other Ininelals underlying g lakes, rivers. reams toads, easements is and rights-of-wa which traverse or
adjoin any of said lands. Fur rental payment purposes, the land included within this lease shall he deemed to contain_ . . 82A4 acres,
whether it actually comprisessnore or less. two (2) pears from Aril 9, 1975
2. Subject to the other provisions herein contained this lease shall he for a term of ri aS1Zm311i.Ltlate called 'primary tom") 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 he paid by Lessee are: (a) on oil, ono-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 welts may be connected, Lessee may y from time to time purchase any royalty oil in its
possession, paying the market price therefor prevailing for the field where e 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; (c) 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 (50c) 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 t va Ity on oil and gas shall be computed after deducting any so used. If a well capable
of producing gas in paying quan[tles is completed on the above described land and is shirt 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 5100.00 per well, and, if such payment or
• tender is made, this lease shall continue in effect for a further 1 t io3 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 leaae shall mti to in effect lor successive periods of twwglyee ) wpinths.
4 If operations for drilling are not commenced on said Lind as hereinafter provided, on or before one year front ARSIZIA tgee`yrleasslb then
terntinate as to both parties. unless on or before such anniversary date Lessee shall pay or tender to Lessor or to the credit of Lessor to.. t e Board
of County Commissioners, Greeley, Colorado (whiand its successors are Lessor's agent
ar3 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 Eighty Two and 43 100
of Lesson the suns uf.. g� y Dollars
($ 82.43... ), therein called rental), which shall cover he privilege of deferring commencement of operations for drilling for a period of
twelve 1121 months In Ilke manner and upon like payments tenders annually the commencement of operations for drilling may be further deferred
for successive periods of twelve i12) months each during the I S trni The payment or lender of rental herein referred to may be made in currency,
draft or check at the option of .he Lessee. and the depos t og duch currency,Malt or check in ny post office,properly addressed to the Lessor,or said
bank en r before the rental pry.ng date, shall be deemed 1 ayn i t hen it. 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 rent a., Lessee nee sl all not be held in default for failure to make such payment or tender
of rental until thirty 130) days after Lessor shall deliver to Lessee a prosier recordable instrument, naming another bank as agent to receive such pay-
ments or tenders. The down cash pavntent is consideration for this ase acrordtm. t, its terms and shall not be allocated as mere rental for a period.
Leesee mmay at any time execute arid deliver to I.essor or to the depository shovel .led ur place of record a release or releases covering any portion or
pert'mns of the above described premises and thereby s,talender On, .,sc as to such portico or portions and be relieved of all obligations as to the
acreage surrendered, and thereafter the rentals payable hereunder shall he :educed m the preps rim, that the acreage covered hereby is reduced by said
release or releases.
If Lessee shall, on or before y rental date male a bona Ldc floc ft to pay or deposit rental to a Lessor entitled thereto under this lease
according to Lessee's _ tun Lessor who, prior to nth 311atten,pled payment ent r deposit his given Lessee notice. in accordance with the terms of
this lose hereinafter set forth, of his right to receive rental and it ,such paymeint t depuslt shall be el roueous in any regard (whether deposited in the
wrong d linitory, paid to persons other than the parties entitled thereto a- hewn by Lessee's r r rd: in m incorrect amount, or otherwise), Lessee
shall be unconditionally obligated to pay to such Lessor the properly pa able for the rental pttiod nvolved, but this lease shall be maintained in
the sane manner as if such erroneous rental p ymerd or deposit VA m mymerly made, provided that the erroneous rental payment or deposit be cor-
rected within 30 days after receipt by Lessee of written notice iron _i rah Lesser of such error accompanied by any documents and other evidence neces-
sary to enable Lessee to make proper payment.
5. Should any well dulled on the eh ve described land during VI,. To minify icion 1 el e prodiletiOn la obtained be a dry hole, or should production
he obLdined during the primary l.om and theseafter cease. then and ln either 'e t 1 operations for didIi rag an additional well are not commenced or
operations for lewnrking an old well are not pasted s ;,1 land on before th. first v,al ping dale next succeeding the cessation of production
or drilling or reworking on said well or wells then this , st:_t tr on,tude unle.s Lussee,on or before said date, shall resume the payment of rentals.
Upon resumption of the payment of rentals, Section 4 gove slag the I-Yn,eut of rentals. shall continue in furee just as though there had been no inter-
ruption in the rental payments. If during the last year of the primary tern: at.d prior to the discovery of nti gas, or other hydrocarbons on said land
Lessee should drill a dry hole 11 ereon, or if after discovery of a 1. gas, Or other hydrocarbons Ielore or during the last year of the primary term the
production thereof should cease during the last year of Laid term on- li an cane y rental payment or operations are necessary in order to keep the
lease in force during the ;em:tinder of the primary term It at tire emuration of the primary term, Lessee is conducting operations for drilling a new
well or reworking an old well, this lease nevertheless shall continue 111 force as bug as such drilling or reworking operations continue, or rf, after the
expiration of tine primary terra, production on this lease shall cease, this lease nevertheless shall _ontmue in force if drilling or reworking operations
are commenced within sixty IG0) clays after such cessaliun ° pro durti if production is restored or ad d'liont rl production is discovered as a result of
any such c drilling rf e ah o ondu 'e wI thou' r f _ than tr Gw d us tl ore shall had
fish s long thereafter as oil,
gars other hydrocarbons operations
r (idler 1 is F 0) rice nag adrbl sal drilling or rcwurkiag operations are had without eersaUon of such drill-
ing sir reworking opera Dons for more sixty c vGve days.
r6 Lessee. at .ts option, is hereby given the right and pews- to pro or combust the land covered by this lease, or any portion thereof, as to oil
and gas, or either of them. with a y other land, lease or leases when in Less :s Judgment it is e ecessary r advisable to do so in order to properly
develop and operate nt 1--ramie...such pooling to be into well n its not eedir g forty (401 acres. plus an acreage tolerance of ten per cent
i0c) of1 forty ,sc a oil, :nil not eeut six i t 1 i ' nil rutty L 61(1) i t an g wage tolerance of ten per cent t r0 t o six govern-
me forty t on :s e for gas, di cot that larger may b se e i t o Lo t> sparing or anyLesseepool
re.ics on thereof, a above ohedprovided, o to oil or gas
Inam n or t .r strata, and dery o tamed need not c f a unit the unit li o into which the lease is pooled or combined as is
any other stratum o' strata, and units or
need not s there'd
t with g t The pooling one or more place
of ecshall not exhaust the rstru-
ofthe Lessee 'ing under s tool h s lease ar acreages Oren t ue order see 11F251=1 earn ase i writing and dace of record an instrument m' trof
meals ass asi if i II e included i the please acreage.n The t o r eigc , p .,red into shall be treated for all purposes,fr , except the l paymentthereon
of
royalties. as if it were need inthis lease, and drilling oa or reworking c-pt suerp thereon of syoltos. of oil or gas rationsow, or the completion s pm thereon
of a well as n shut in gas well, shall be considered for a;l 4 u pleas. exit-pt t the payment ro vat Cell as if such non t premise on or such p lease
Liwere front or royalties
completion esewh were on the land covered cby shall this lease, whether or not the well nr wells be located the pr stipulated aed by this lease_
:n lieu of the royals ease d m herein o his roc Lessorres • team „ ro¢ so formed, nub- such portion of the royalty unvaed herein as the
Dan ou al td his -eta g placed m the unit or his royalty hate err Ih me a bears to s the totalacreage :o ,pooled in the lsyparticular unto involved. ter,Should she unit
e
DS coriginallyfie dead.n has i ndercontain less than the maximum 'ni Der of acres h diii r bl a specified,eto, fusee may at d any time all in tor,whether ee-
the c age peer c non a obtained if the n the h enlarge such cif- bi adding additional a :ego a ll execute
but the enlarged record
shall in no event exceed
the acreagecontent he tifyi nave specified In eanent nl e t' e a .enlarged, Lessee sh f1 cxecu lu and place of ar a supplemental unitization
isnot
fi ofunitizationafter
d ct on is and describing the and added 1 the existing a unit, pt such. oven if suchsupplemental declaration of of it not
filed until it ectiv production t is obtained on the calendar
as originally t ns created, then and i e 1event the supplementalencof declarationti unitization aylea shall not
become effective until the first of the rminatr month neat following the filing therea in sue absence of production Lessee may ',marinate any
unitized area by filing of record notice of termination.
7 Lessee also shall have the right to unitize. pod, ot condom. ❑ or Any pa ' of the above described Janda with other hinds in the same general
area by entering into a cooperative or unit plan of development 01 nperat.un rpproved by any ,mvernrnental authority and, from time to time. with
like approval to modify, change or terminate any such plan r and ins such event, the tennis, conditions, and provisions of this lease shall be
deemed modified 'o conform to the terms, condition, and provision:. of such ..pp loved 1 otpertt unit plan of development or operation and. par-
ticularly, all drilling and development requirement., of this lease express nn implied, shall be satisfied by compliance wills the drilling and development
requirements of such plan or agreement, and ihis lease shall not template m ercpae during the life of sub plan or agreement_ In the event that said
above described lands d- or my part thereof. shall I e-e fte be npetaltd csuch o _rd .e or unit plan of development or operation whereby
the production therefrom is allocated to different p tons ot the land covered said plan. then the production Ile L d to any particular tract of land
shall. for the purpose of computing the y.d to be paid Mocunder crgauled - 1flung beer Plojoced fort the Particular tract of land
to which it is allocated and not to ray other tract of Itnf arid I,. r y payment. tie madc hereunder ode to Lessor shall be based upon production
only as so allocated 1 essw shell formally express Lessors consent _ Lny c,oprisave ;,r r nit pl.in of development or operation adopted by Lessee and
approved by any governmental agency by executing the same ti as ienue.. of Lessee
K. Lessee shall have the right at any time without I 'ar nil nil v portam of the leased premises and be relieved of
all obligation as to the acreage surrendered Lessee shall h right t,vi> una. during u axtCr the expiration of this lease to remove all property
and fixtures placed by Lessee Oil sari land. including (h. t 1 1 .ig When qua d by Lessor,, Lessee will bury all pipe
lines below ordinary plow eptl and t no well shall be tirliled a twu loindrsd t 0 teat tic any re Aeon. barn now on said land without
Lessor s consent The Lessee. :gn,., lobs nni-i > Pa' totsthe Sc tl-. nr sc a. smi u . cis, e.ased by or resulting from any
operations of CeLsee
740006
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 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 parties regardless of whether it Is signed by any of the other
parties. named who sign the same, (SEE RELEASE RIDER ATTACHED)
IN WITNESS WHEREOF, this Instrument is executed on the date first above written.
Ailiviiiiiiigc ATTEST: 7/ ,r WELD COUNTY, a political subdivision of the
e ,./'Z'
/'-c ` State of o orad q, j Board of County Commissioner
&y County Clerk and Recorder, ' By 1 t((.f: A 1ckc.li c
.,...crl U4l-/,/i,., Prove By y r .. , t) gCtc<< (`.).
C J gy. ` /
X/ G JCL .
t
STATE OF COLORADO,
County of
WELD SS. Colorado Acknowledgment
The foregoing instrument was acknowledged before me this 28th day of
August. 74
, A.D., 19 by
Harry....8......Ashley, Glenn K. Billings & Roy Moser
Witness my hand and official seal:
My commission expires_11.toppmiSSHlf expires u n. 26, 1978 /_ z t/. ////1,,
//�- N ary Public.
\ . .
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.
Notary Public.
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