HomeMy WebLinkAbout710001 AUTHORIZING OIL AND GAS LEASE #570
COVERING CERTAIN COUNTY MINERAL LANDS
TOWN OF VOLLMAR - SECTION 13, TOWNSHIP 2 NORTH,
RANGE 67 WEST OF THE 6th P.M. , WELD COUNTY
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
.58 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 the Board of County Commissioners of
Weld County, Colorado, that the offer of Amoco Production Company, as hereinabove
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 Vollmar, Colorado situated in the Si of Section
13, Township 2 North, Range 67 West of the 6th P.M. , being second filing
of said town, a plat of which is recorded in Book 5, at Page 50 of Weld
County Map Records, and described as follows:
Block 1: W150' of Lot 2
Block 7: Lot 1
The above and foregoing resolution was, on motion duly made and seconded,
adopted by the following vote:
AYE
•
i •
THE BOARD OF.ICOUNTY COMMISSIONERS
WELD COUNTY, COLORADO
DATED: December 15, 1971
fit
659 15`'132
Roc.ti� ,.� •I �r„,
Producers 88(272)3-e3--Colorado hr,r0 9.27
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT made this 28th day of October 19 Tf,between
.➢0.,__A--POLITICAL...SUBDIVISION....OF THE, STATE CDLi7RA➢::I-,----BY THE BUAR➢--OF-
CUUUTY._G.. ,raS.,IONEh5,.-Full._.ITS..RLSYECTI.V.E-.INTEREST
C/O BAFIJ OF Ei)U .TY.COMMISSIONERS,..WELD_COUNTY...COURT....Hi U_.t,._G.HEtLEY,--CULUR4UU
Lessor(whether one or more),and...AM.UC4...FRUDUCT.I.UN...COMPANY,_..SECURITY...LIFE._.BLi)S_._,-_.DENVE�t..,._.COLORADO
Lessee,WITNESSETH:
1. Lessor in consideration of -.. Onffi...and...More-- Dollars
$.....1.U.U&MOSa.I.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,ex particularly
ploring,prospecting,drilling and mining for and producing oil,gas, ther hydrocarbons and,
without restriction to s ch enum ated m erals, 11 they nerals hether similar or dissimilar to thosepecified herein,laying pipe lines,
building tanks,power stations,telephone lines and other structures thereon to produce,save,take care of, transport and own said products,and
housing its employees,the following described land in Wald County.Colorado,to-wit:
That portion of the town of Vollmer, Colorado situated in the Si- of Seetiin 13, Township 2
North, Mange 67 ':test of the 6th PM, being second filing of said torn►, a plat of which is
recorded in Book 5, at Page 50 of Weld County Map Records and, described as follows:
[:lock 1: W15U' of lot2.
Aleck ,': Lot 1.
1i
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 djacent,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-way which traverse or
adjoin any of said lands.For rental payment purposes,the land included within this lease shall be deemed to contain .5O acres
whether it actually comprises more or less. Five
2. Subject to the other provisions herein contained,this lease shall be fora term of met 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 it 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,
o 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;(el 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 of oil,gas,coal,wood and water from said land,except
ter from Lessor's wells,for all operations hereunder,and the royalty oil and gas shall be computed after deducting ay used.If a well capable
of a 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 a darters o well iastin.Lessee or any assignee may thereafter, the manner provided herein for the payment or tender of delay
orroyalty.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)months each.
4. If operations for drilling are not commenced on said land as hereinafter provided,on or before one year from this date,the lease shall 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 9i....et...Board.
•
of.CRUllty the tit ositWg #L0BK71kp Cj eel (.6 j,6r tip (which f,16.th ccessors are Lessor's agent
and shall continue as the depository for all totals payable hereundek�i'egard7 ss of changes in ownership of said��d or the rentals either by conveyance
or by the death or incapacity of Lessor)the sum of sa/1.OIIr ...iDollars
(0 .58 ),(herein called rental),which shall cover the privilege of deferring commencement of operations for drilling fora 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(or any successor bank)should fail,liquidate or be
susucceeded
c ededubtil thirty hr bank,
,or for a any
reason
onhalil or delivr refuse o accept rental,Lessee shall not be held in default for failure to make such payment or tender
days proper recordable instrument,naming another bank as agent to receive such pay-
ments or tenders.The down cash payment isconsideration according
for this lease ac o ding to its terms and shall not be allocated asrental for a period.
Lessee
may at of the any time
describedand deliver to Lessor or to the depository above named or place of record a lease or releases covering any portion or
Less thereafter therentals premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the
acreage
or
surrendered,and payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
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
coding to Lessee's records or to a Lessor who,prior to such attempted payment or deposit.has given Lessee notice,in accordance dance 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 unconditionally obligated to pay to such Lessor the rental properly payable for the rental period involved but this lease shall be maintained in
thecor-
rected me min ierd s if sucherroneous rental payment or deposit hadbeen properly made,provided that theerroneous rental payment or deposit be neces-
sary do within
0 days after aka receipt
pptpb[LesseeL toff written nonce from such Lessor of such error accompanied by any documents and other evidence n -
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 inter-
ruption ption the rental payments.If during the last year of the primary term and prior to the discovery of
n
oil,gas,o other hydrocarbons on said land
Lessee should drill dry hole thereon, y
if after discovery of oil,gas,or other hydrocarbons before during the last year f the primary term the
production thereof should cease during the last year of said term from any cause, o rental payment or operations are n cessary 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 c d within sixty(60)days after such cessation of production;if production is restored or additional production is discovered 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,
e 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 order to properly
e develop o prate said premises,oil, such pooling i be into a well unit r units t c ceding forty acre,plus an acreage tolerance of ten her r t
i10';rf of forty acres,for oil,and not exceeding six ere and forty(640)m acres,spacing
an well att of ten peace t(resc)of s hundred
andforty authorities
acres,uying gas,except that larger units may be created to cover toy spacing or well unit pattern that may be prescribed by govern-
mental a
one
or more
having jurisdiction.ansLessee may donl or form acreage covered by this nit(,or any portion chthereof,th as above provided. to oil or
strata,and units sots etl need not conform in 00 area with the unit or units into which the lease is pooled no or combined theigto
is
s
i any the other here or strata,and oil unitsorneed io conform as t a unit gas units.The pooling in one or more instances shall a not exhaust the instrof u-
ments Lessee hog nded describing rib th lease acr age.thereof into creag units.Leese(shall a tush. citing add place of record a nsti en[ y i ntrof
iyals is,asi if it and the lapooled acreage.The or red acreage so pooled lo a or p production
be oftreated Inc all purposes,except the payment thereon
of
royalties,well ass it were included in this lease,and drilling o purposes,
a apt the payment thereon or pyaltie.a of oil or gas rat w.or the r sulhupn thereon
w a ell as a s ch gas well,shell be o atdered for 11 this leas,e pt thenott of royalties.a if c e onoperationsse on ors h phis learn
e from or such completion were re the land d.covereds byr shall this leceiv oeo or nos the med o ass be located the premises alys po ated he this lease.
In lieuoun of the r e es elsewhere herein or hified,Lt in rest receive from a its formed,only such portion of the royalty v herein the
as o igi of his created acreage placed r the unit ha heltm interest therein bears to the total acreage sod,pooled in the particular atar ti involved.thereafter,Should any unit
e
oror originallyhereunder contain lesst than the maximum mbar acres additional
specified,thereto.
Lessee n at any time in whether be-
thee crafter production is blamed i the unit,enlarge n such unit by addingis enlarged) acreage thereto,but theenlarged r shall a p enom event exceed
the acreage content ey specified.In the event existing unit et; provi Lessee fl so execute one place of record a supplemental unitization
is not
file ofunitizationi p identifying ucon and n describing the land order to l the existingte then
ennan pnvsuch,that if pelts supplemental dllarati declaration unitization not
filco of after civ production isobtained the unit aas originally nexy created,t the i in such event the e absence
of supplemental declaration se ayfe natel not
become effective nag 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
deemg d m dified to conform to the terms,conditions,a d provisions of such approved cooperative or unit plan of development or operation a d,par-
ticularly,all drilling and development requirements of this lease.express im
plied,mplied,shall be satisfied by u 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 c y 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
hall,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 cooperative or unit plan of development or operation adopted by Lessee and
approved by any governmental agency by a executing the same upon request of Lessee.
6.Lessee shall have the right at a y time without Lessor's co sent 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 rem all property
and fixtures placed by Lessee said land.including the right to draw andall easing. When required by Lessor, Lessee will remove
all pipe
lines Lessor's blowio ordinary
Lesseew epth.ando no well n shall be drilled within two hun remove 2001 feet of ay residence or barn n aid land without
operations of Lessee. agrees promptly pay to the owner thereof any damages to crops, or improvements. caused by or resulting from any
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.
k
\ 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
i 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
c 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 heniw SiYr1f4, sAAY 9PrY9' (§ �t O ' 7l�alliAtk tagrees that Lessee at its option may discharge any tax, mortgage or
other lien upon saitl Td�lE t lfAiV CKWAtr #9 n ev esse oes au. 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.
�JC##JFiI9WC WELB CO.tSFlTY,-GOLOFtAAOM4 A.._ftILITIEAl i $T)IVI5ION
A-TTE_24.FiF12 . ` 74'1W OFT -CT-ATE OF COLORADO Y THE BOARD OF
666��� C h`I AE2X
HYt uY
�"� f,0l11TY-[a.Ff3JC_AND RECORDER raX.;
1..+y G%�'`y4'l ' �fs_<E'ow�/ .fit.;,^ + Cltu�.. n BY t )L�.Q,I`.i<r � ��
(144------1/67
STATE OF COLORADO, •,
ss. Colorado Acknowledgment
County of wE.LI
The foregoing instrument was acknowledged before me this 15th day of
December , A.D., 19 71 by Marshall H. Anderson,
Glenn...K.....Bil.11fg.$.s Harry S. Ashley,, The Board o£ County Commissioners
Weld County., Colorado
Witness my hand and-Official seal: • y
My commission expires.`,e' ' / 2'/ /7. / N, ,e�/
/��t
` Notary Public.
//
r,
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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