HomeMy WebLinkAbout20203392.tiffJesska Rao
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Hi Bruce,
Jessica Reid
Friday, October 1, 2021 2:22 PM
Bruce Barker
Esther Gesick
Amendment to Oil and Gas leases
LE0503.pdf; Amendment to OGL - weld County 4655974.docx
Happy Friday! In processing a DO it was brought to my attention that there are 6 leases, recorded last year, that had the
wrong expiration date on them when they came to us (expiration date was same as effective date). I did not catch the
error, therefore, they were processed and recorded with the wrong date. Extraction has sent over a document for Steve
to sign indicating an amendment with the expiration date. I have included the original lease and the amendment for one
of the leases for you to review, again this would be applicable to 6 different leases. Please advise if I can proceed with
putting these on the Consent Agenda for approval.
if this is an oil and gas commurfic Lion please use the email address G b=
oilandgsieas ng@wel_iolaisecom opposed ter my personal email address,
a s
Deputy Clerk to the Board
Weld County
9150 ® Street
Greeley, CO 80631
fel: 970-400-4292
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise
protected from disclosure. If you have received this communication in error, please immediately notify sender by return
e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
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Jessica Reid
From:
Sent:
To:
Cc:
Subject:
Sean Flanagan <sflanagan@extractionog.com>
Friday, October 1, 2021 1:16 PM
C -B -Oil and Gas Leasing
Jcel Barber; Roland VandenBroeck
Re: U n l eased interests
Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Jess,
That is correct, we will get it executed and flipped back to you ASAP once we are in receipt.
Thanks,
Sean Flanagan
303-877-8709
On Oct 1, 2021, at 12:39 PM, CTB-Oil and Gas Leasing <CTB-0ilandGasLeasing@co.weld.co.us>wrote:
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Hi Sean,
Thanks for those! To clarifywill we sign and notarize then send to you for signature and notarization
then you'll record and send us a copy?
a a oil
/{.fl-nrr�, is an ���F n gas communication plea e use t hem email �i'�°�re ctb-
G u j 1, I� 1 � � � tl .:1 C-� please Cd .l use � � P address u�
°Hand asieasing@widgovacoan opposed to my personal email address.
Jess Reid
Deputy Clerk to the Board
Weld County
9150 O Street
Greeley, CO 80631
tel: 970-400-4212
<image001.jpg>
Confidentiality Notice: This electronic transmission and any attached documents or other writings are
intended only for the person or entity to which it is addressed and may contain information that is
privileged, confidential or otherwise protected from disclosure. If you have received this communication
in error, please immediate y notify sender by return e-mail and destroy the communication. Any
disclosure, copying, distribution or the taking of any action concerning the contents of this
communication or any attachments by anyone other than the named recipient is strictly prohibited.
4769515 10/26/2021 09:35 AM
Total Pages: 2 Rec Fee: $18.00
Carly Koppes - Clerk and Recorder, Weld County , CO
AMENDMENT TO OIL AND GAS LEASE
(To Correct Primary Term)
THIS AMENDMENT TO OIL AND GAS LEASE ("Amendment"), is made and entered
into this I $kh day of October 2021, and effective as of August 26, 2020, by and between Weld
County, Colorado, a political subdivision of the State of Colorado, acting by and through the Board
of County Commissioners of the County of Weld, for its respective interests, c/o Board of County
Commissioners, 1150 O Street, P.O. Box 758, Greeley, CO 80632 described herein as "Lessor," and
Extraction Oil & Gas, Inc. as "Lessee."
WITNESSETH:
WHEREAS, Lessor and Lessee each own interest under and subject to an oil and gas lease
dated August 26th, 2020 which was entered into by and between Weld County, Colorado and
Extraction Oil & Gas, Inc., covering the following described lands in Weld County, State of
Colorado, to -wit:
Township 5 North, Range 65 West of the 6`h P.M.
Section 17: That portion of Lots 1 and 2, SF,/4SE/4 of Union Colony, described by metes
and bounds in that certain Rule and Order dated March 18, 1964, recorded under Reception
No. 1437581
Containing 2.8746 gross acres, more or less
such lease having been recorded at Reception Number 4655978 in the records of Weld County,
Colorado (the "Lease"), Lessor and Lessee now desire to amend certain provisions of said Lease.
WHEREAS, the Primary Term of the Lease was incorrect and it is the intent and purpose of this
Amendment to correct said Primary Term.
NOW, THEREFORE, in consideration of the benefits to be derived by each party
hereunder, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Lessor and Lessee hereby agree as follows:
1) The Lease is hereby amended by deleting the following:
TO HAVE AND TO HOLD said land, and all rights and privileges granted hereunder to
Lessee until the hour of twelve o'clock noon on the 26t clay of August, 2020, as primary
term, and so long thereafter as oil and gas, or either of them, is produced in paying
quantities from said land or lessee is diligently engaged in bona fide drilling or reworking
operations on said land, subject to the terms and conditions herein.
2) The deleted clause is replaced with the following:
TO HAVE AND TO HOLD said land, and all rights and privileges granted hereunder to
Lessee until the hour of twelve o'clock noon on the 26t day of August, 2023, as primary
term, and so long thereafter as oil and gas, or either of them, is produced in paying
quantities from said land or lessee is diligently engaged in bona fide drilling or reworking
operations on said land, subject to the terms and conditions herein.
Lessor acknowledges that said Lease, as amended, is valid and in full force and effect and for such
purpose Lessor hereby ratifies and to the extent necessary grants, leases and lets to Lessee all of
Lessor's interest in the above described lands upon the same terms, conditions and provisions as
are contained in said Lease as amended hereby and by any amendment heretofore executed, as to
the interest owned by Lessee as of the date of this Amendment. Except as hereby amended, all
terms of the Lease shall remain as originally written or previously amended.
aoao - 339 a
�� So -1
4769515 10/26/2021 09:35 AM
Page 2 of 2
This Amendment shall be binding upon and inure to the benefit of the parties hereto, their
successors, personal representatives and assigns.
Executed as of the date first above written.
By:
Name: Steve Moreno
Title: BOCC Chair OCT 1 8 2021
Extraction, Oil &"Gas, Inc.
1
By: "�"�'"✓2
NatiieNatthew R. Owens
Title: Chief Operating Officer
ACKNOWLEDGEMENTS
STATE OF COLORADO )
) ss
COUNTY OF WELD )
The foregoing instrument was acknowledged, subscribed and sworn to before me this 18th day of
October 2021 by Steve Moreno as BOCC Chair of Weld
County, CO.
CHERYL LYNN HOFFMAN
SEAL NOTARY PUBLIC
[SEAL.] STATE OF COLORADO
NOTARY ID 20144048044
MY COMMISSION EXPIRES DEC. 19, 2022
Notary Public, Cheryl L' Hoffman
My Commission Expires: 12/19/2022
STATE OF COLORADO
COUNTY OF 'Nj(1\/er )
) ss
The foregoing instrument was acknowledged, subscribed and sworn to before me this g day of
OCfobe,r , 2021, by Matthew R. Owens, as Chief Operating Officer of Extraction Oil &. Gas, Inc.
[SEAL]
My Commission Expires:
0..4q
Notary Public
KATHERINE C. DALEGOWSKI
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20214019730
MY COMMISSION EXPIRES MAY 20, 2025
End of "Acknowledgements"
oZo,,,z4 - 5 5 �z
WELD COUNTY SMALL -TRACT OIL AND GAS LEASE
THIS LEASE AGREEMENT, dated this 28th day of August , 20 20 ' made and entered into
by and between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO,
acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its
respective interests, do BOARD OF COUNTY COMMISSIONERS, 1150 O STREET, P.O. BOX 758,
GREELEY, CO 80632, hereinafter called Lessor, and:
EXTRACTION OIL & GAS, INC.
37017TH STREET, SUITE 5300
DENVER, CO 80202
hereinafter called Lessee:
WITNESSETH
WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein
described, and has paid a bonus consideration of $ 1,200.00 per mineral acre, fixed by Lessor as
an additional consideration for the granting of this lease, and the following consideration:
WHEREAS, all the requirements relative to said lease agreement have been duly complied with and
said lease agreement has been approved and allowed by Lessor,
THEREFORE, in consideration of the agreements herein, on the part of Lessee to be paid, kept and
performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,
development of and production of oil and gas, or either of them, thereon and therefrom with the right to
own all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the
terms of this lease, together with rights -of -way, easements and servitudes for pipelines, telephone and
telegraph ikres, tanks and Mures for producing and caring for such product, and housing and boarding
employees, and any and all rights and privileges necessary for the exploration and operation of said land
for oil and gas, the following described land situated in the County of Weld, State of Colorado, and more
particularly described as follows:
SEE ATTACHED 'EXHIBIT A" FOR LEGAL DESCRIPTION AND ACREAGE
TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee
until the hour of twelve o'dock noon on the 26th day of August , 20 20 , as primary term, and so
long thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee
is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and
conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is
no delay or cessation thereof for a greater period than sixty (60) consecutive days, unless an extension in
writing is granted by Lessor; provided that such drilling or reworking operations are commenced during
said primary term or any extension thereof, or while this lease is in force by reason of production of oil
and gas or either of them, or that such reworking is commenced within (60) sixty days upon cessation of
production for the purpose of re-establishing the same, and provided further that such production is
commenced during such primary term or any extension thereof, or while this lease is in force by reason of
such drilling or reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein.
C p r"\ z- Pc V. r a.C.,
11- k to - Z.O 2.O
4635978 Pages: 1 of 13
12/01/2020 01:58 PM R Fee:$0.00
Bill
Carly Koppel, Clerk and Recorder, Weld County, CO
2020-3392
(Revised 08/2014)
�?._.OS O�
Small -Tract Oil and Gas Lease
Page 2
In consideration of the premises, the parties covenant and agree as follows:
1. RENTAL - This is a PAID -UP LEASE. In consideration of the down cash payment, Lessor agrees
that Lessee shall not be obligated, except as otherwise provided herein, to commence or
continue any operations during the primary term. Lessee may at any time or times during or after
the primary term surrender this lease as to all or any portion of said land and as to any strata or
stratum by delivering to Lessor or by tiling for record a release or releases, and be relieved of all
obligation thereafter accruing as to the acreage surrendered.
2. ROYALTY PROVISI NS:
A. Lessee Responsible for All Costs/Expenses: Lessee shall account for any and all
substances produced on the leased land and shall pay to Lessor as royalty, in addition to the
rentals provided, the royalties described in paragraphs B through E below, which shall be free
of all costs of any kind. In this regard, Lessee agrees to bear one hundred percent (100%) of
all costs and expenses incurred in rendering hydrocarbons produced on or from the Leased
Premises marketable and delivering the same into the purchaser's pipeline for immediate
transportation to an end user or storage facility. If a gas purchase contract makes any
deductions for the expenses of dehydrating, transporting, compressing, manufacturing,
processing, treating, gathering or marketing of such gas, then such deductions shall be
added to the price received by Lessee for such gas for the purpose of the payment of
royalties to Lessor. Additionally, royalties payable to Lessor shall never bear, either directly
or indirectly, under any circumstances, the costs or expenses (including depreciation) to
construct, repair, renovate or operate any pipeline, plant, or other facilities or equipment used
in connection with the treating, separation, extraction, gathering, processing, refining,
transporting, manufacturing or marketing of hydrocarbons produced from the Leased
Premises or lands pooled therewith. It is the intent of the parties that the provisions of this
Paragraph 2 are to be fully effective and enforceable.
B. Royalty Payment on Products: On products, Lessee shall pay Lessor a royalty payment of
eighteen and one-half percent (18.5%) of the gross market value or proceeds of sale thereof,
whichever is higher.
C. Rovalty Payment on Residue Gas: On residue gas or gas remaining after separation,
extraction or processing operations, Lessee shall pay Lessor eighteen and one-half percent
(18.5%) of the proceeds of sale or of the market value thereof, whichever is higher.
D. ,Royalty Payment on ON: At the option of Lessor, and with sixty (60) days' note to Lessee,
Lessor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to
Lessor on the leased land, free of cost or deduction, into the pipelines or storage tanks
designated by Lessor, but Lessee shall not in such case be required to provide free tankage
for any such oil for a longer period than one month after the same is run into tanks. With
sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in
cash, Lessee shall pay Lessor for oil produced and saved from the leased land, eighteen and
one-half percent (18.5%) the market value of the oil at the wellhead, or the price actually paid
to Lessee at the well by the purchaser thereof, whichever is higher, and in no event shall the
royalties be based upon a market value at the well less than the posted price in the field for
such oil, or in the absence of a posted price in the field for such oil, upon a market value at
the well less than the prevailing price received by other producers in the field for oil of like
grade and gravity at the time such oil is run into pipelines or storage tanks.
E. No Refund of Bonus: if Lessor owns a lesser interest in the oil and gas deposits of the
above -described land than the entire and undivided fee simple estate, then the royalties and
4655978 Pages: 2 of 13
12/01/2020 01:58 PM R Fee:$0.00
Carly Koppes, Clerk and Recorder, Weld County, CO
Bill
(Revised 06/2014)
Small -Tract Oil and Gas Lease
Page 3
rentals herein provided shall be paid to Lessor only in the portion which its interest bears to
the whole and undivided fee, but no refund of any bonus consideration shall be made by
Lessor hereunder.
F. Timino of Royalty Payments: All royalties payable under the terms of this lease shall be
payable in cash (unless Lessor elects to take such royalty oil or gas in kind) to Lessor within
one hundred twenty (120) days following the first commercial sale of production and
thereafter no more than sixty (60) days after the end of the month following the month during
which production takes place. Subject to the provisions of Paragraph 16 of this Lease
concerning shut-in wells, royalties shall be paid to Lessor by Lessee and/or its assigns or by
the product purchaser for oil and/or gas. Upon the failure of any party to pay Lessor the
royalty as provided in this paragraph, Lessor may, at Lessor's option, elect to terminate this
Lease by sending written notice to Lessee. Lessee shall then have forty-five (45) days from
the date of service of such written notice in which to avoid termination of this Lease by
making or causing to be made the proper royalty payment or payments that should have
been paid. If such royalty payment is not made on, or before, the expiration of the 45 -day
period, or written approval is not obtained from Lessor to defer such payment, Lessor may
elect to terminate this Lease by filing a Notice of Termination with the Weld County Clerk and
Recorder. The effective date of said termination shall be the date said Notice of Termination
is recorded.
G. Effect of "Take or Pav Provision": in the event Lessee enters into a gas purchase contract
which contains what is commonly referred to as a "take or pay provision" (such provision
meaning that the gas purchaser agrees to take delivery of a specified minimum volume or
quantity of gas over a specified term at a specified price or to make minimum periodic
payments to the producer for gas not taken by the purchaser) and the purchaser under such
gas purchase contract makes payment to Lessee by virtue of such purchaser's failure to take
delivery of such minimum volume or quantity of gas, then Lessor shall be entitled to eighteen
and one-half percent (18.5%) of all such sums paid to Lessee or producer under the °pay"
provisions of such gas purchase contract Such royalty payments shall be due and owing to
Lessor within sixty (60) days after the receipt of such payments by Lessee. If the gas
purchaser "makes up" such gas within the period called for in the gas contract and Lessee is
required to give such purchaser a credit for gas previously paid for but not taken, then Lessor
shall not be entitled to royalty on such "make up° gas. If Lessee is not producing any
quantities of gas from the Leased Premises but is receiving payments under the "pay° portion
of such "take or pay" gas purchase contract provision, such payments shall not relieve
Lessee of the duty to make shut-in royalty payments if Lessee desires to continue this Lease,
but such °take or pay" royalty payments shall be applied as a credit against any shut-in
royalty obligation of the Lessee. Lessor shall be a third -party beneficiary of any gas purchase
contract and/or transportation agreement entered into between Lessee and any purchaser
and/or transporter of Lessor's gas, irrespective of any provision of said contracts to the
contrary, and such gas purchase contract and/or transportation agreement will expressly so
provide. Further, Lessor shall be entitled to eighteen and one-half percent (18.5%) of the
value of any benefits obtained by, or granted to, Lessee from any gas purchaser and/or
transporter for the amendment, modification, extension, alteration, consolidation, transfer,
cancellation or settlement of any gas purchase contract and/or transportation agreement.
H. Recovery of Liould Hydrocarbons: Lessee agrees that before any gas produced from the
Leased Premises is used or sold off the Leased Premises, it will be run, free of cost to
Lessor, through an adequate oil and gas separator of a conventional type or equipment at
least as efficient, to the end that all liquid hydrocarbons recoverable from the gas by such
means will be recovered on the lease and Lessor properly compensated therefor.
4655978 Pages: 3 of 13
12/01/2020 01:58 PM R Fee:$0.00
Carly Koppes, Clerk and Recorder, Weld County, CO
INFAVAII Cad 0 IA OMURA' w i6110 4 111 II 1
(Revised 0612014)
Small -Tract Oil and Gas Lease
Page 4
I. Excess Payments to Lessor. Any payment of royalty or shut-in gas royalty hereunder paid to
Lessor in excess of the amount actually due to the Lessor shall nevertheless become the
property of the Lessor if Lessee does not make written request to Lessor for reimbursement
within one (1) year from the date that Lessor received the erroneous payment, it being
agreed and expressly understood between the parties hereto that Lessor is not the collecting
agent for any other royalty owner under the lands covered hereby, and a determination of the
name, interest ownership and whereabouts of any person entitled to any payment
whatsoever under the terms hereof shall be the sole responsibility of Lessee. It is further
expressly agreed and understood that: (I) this provision shall in no way diminish the
obligation of Lessee to make full and punctual payments of all amounts due to Lessor or to
any other person under the terms and provisions of this Lease, and (ii) any overpayments
made to the Lessor under any provisions of this Lease shall not be entitled to be offset
against future amounts payable to parties hereunder.
J. gtfect of Division Omer: The terms of this Lease may not be amended by any division order
and the signing of a division order by any mineral owner may not be made a prerequisite to
payment of royalty hereunder.
K Limitation of Sale to Subsidiaries and/or Affiliates: Oil, gas or products may not be sold to a
subsidiary or affiliate of Lessee as defined herein without the Lessor's prior written
permission.
L Royalty Payable on All Gas Produced: Lessee shall pay Lessor royalty on all gas produced
from a well on the Leased Premises and sold or used off the Leased Premises, regardless of
whether or not such gas is produced to the credit of Lessee or sold under a contract executed
by or binding on Lessee. Should gas be sold under a sales contract not binding on Lessee,
Lessor's royalty will be calculated based on the highest price paid for any of the gas
produced from the well from which such gas is produced. In no event will the price paid
Lessor for Lessor's share of gas be less than the price paid Lessee for Lessee's share of
gas -
3. LESSOR'S ACCESS TO LEASED PROPERTY AND RECORDS
A. Records Generally: Lessee agrees to keep and to have in its possession complete and
accurate books and records showing the production and disposition of any and all
substances produced on the leased land and to permit Lessor, at an reasonable hours, to
examine the same, or to furnish copies of same to Lessor upon request along with
purchaser's support documentation. Lessor will not be unreasonable with requests. All said
books and records shall be retained by Lessee and made available in Colorado to Lessor for
a period of not less than five (5) years.
B. Access to Premises: Lessor shall have free access, at an times, to all wells, tanks, and other
equipment on the Leased Premises, induding drilling wells, and Lessee agrees to furnish
Lessor, or Lessor's nominee, currently and promptly, upon written request, with full well
information including cores, cuttings, samples, logs (including Sdhlumberger and other
electrical logs), copies and results of deviation tests and directional and seismic surveys, and
the results of all drill stem tests and other tests of other kind or character that may be made of
wells on the Leased Premises. Lessor or Lessors nominee shall be fumished with, and have
free access at all times to, Lessee's books and records relative to the production and sale of
oil, gas or other minerals from the Leased Premises, including reports of every kind and
character to local, State or Federal govemmental authorities. Lessor shall have the right, at
its election, to employ gaugers or install meters to gauge or measure the production of all
minerals produced from the premises, and Lessee agrees to prepare and deliver to Lessor or
4655978 Pages: 4 of 13
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Carly Koppes, Clerk and Recorder, Weld County, CO
(Revised ON014)
Small -Tract Oil and Gas Lease
Page 5
Lessor's gauger or nominee duplicate run or gauge tickets for all minerals removed from the
premises. Lessee shall furnish to Lessor daily drilling reports on each well drilled upon
request.
C. Gas Purchase Agreements/Gas Contracts: At least thirty (30) days prior to the delivery or
the execution of any contract for the sale, delivery, transporting or processing of gas
produced from the Leased Premises, Lessee shall provide Lessor with a complete copy of
each proposed contract for the purchase, transportation and/or processing of such gas that
Lessee intends to execute (each a "Gas Contract"), whereupon, Lessor may object if the
terms of said Gas Contract conflict with the terms and conditions of this Lease. Lessee shall
furnish to Lessor, within a reasonable time after its execution, a copy of any Gas Contract or
transportation agreement entered into in connection with the Leased Premises, or if there is
already a Gas Contract or transportation agreement in effect due to Lessee's operations in
the field, then a copy of that contract. Furthermore, a copy of any amendments to the gas
purchase contract or transportation agreement shall be furnished said Lessor within
thirty (30) days after execution thereof; and on request of Lessor and without cost to the
Lessor, lessee shall fumish Lessor a copy of the following reports: core record, core
analysis, well completion, bottom hole pressure measurement, directional survey records,
electrical and induction surveys and logs, gas and oil ratio reports, paleontological reports
pertaining to the paleontology of the formations encountered in the drilling of any welts on the
Leased Premises, and all other reports which pertain to the drilling, completing or operating
of the wens located on the Leased Premises. Such information shall be solely for Lessor's
use, and Lessor shall attempt to keep same confidential for twelve (months after receipt,
subject to its obligation to comply with the Public Records requirements under Colorado law.
Lessee agrees that it win not enter into any contract for the sale, delivery, transporting or
processing of gas produced from the Leased Premises which shall extend more than two (2)
years from the effective date of such sales contract unless such contract has adequate
provisions for redetermination of price at intervals of no less frequency than one (1) year to
ensure that production from this Lease is not being sold for less than the then current market
value.
D. Lessee to Advise Reaardino Well Status: Lessee shag advise Lessor, in writing, of the
location of all wells drilled upon the Leased Premises on or before thirty (30) days prior to
commencement of operations, and shall advise Lessor, in writing, the date of completion
and/or abandonment of each well drilled within thirty (30) days after completion or
abandonment.
4. MEASUREMENTS: All production shall be accurately measured using standards established by
the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all
measuring devices shall be tamper proof as nearly as possible. Oil royalties due within the temps
of this lease shall be calculated on actual and accurate measurements within API standards
unless a different means of measurement, subject to Lessor's approval, is provided.
5. PAYMENTS AND REPORTS: All payments and reports due hereunder shall be made on or
before the day such payments and reports are due. Nothing in this paragraph shall be construed
to extend the expiration of the primary term hereof. Oil royalty payments and supporting
documents shall be submitted prior to the last day of the month following each month's sale of
production, and gas royalty payments and supporting documents shall be submitted prior to the
last day of the second month following each month's sale of production. All payments shall be
made by cash, check, certified check, or money order. Payment having restrictions,
qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A
penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein.
4655978 Pages: 5 of 13
12/01/2020 01:58 PM R Fee:$0.00
Carly Koppes, Clerk and Recorder, Weld County, CO
II
(Revised 082014)
Small -Tract Oil and Gas Lease
Page 6
6. PENALTIES: A penalty shall be imposed for, but not limited to, late payments, improper
payments, operational deficiencies, violation of any covenant of this lease, or false statements
made to Lessor. Penalties shall be determined by Lessor, unless otherwise provided for by law,
and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. A
penalty schedule shall be prepared by Lessor and shall become effective immediately after public
notice. Said schedule may be changed from time to time after public notice.
L6.W.: The terms and conditions of this lease shall be perfomied and exercised subject to all
laws, rules, regulations, orders, local ordinances or resolutions applicable to, and binding upon,
the administration of lands and minerals owned by the County of Weld, and to laws, rules and
regulations governing oil and gas operations in Colorado. Violations shat resuk in penalties as
provided for by law or as set forth in the aforementioned schedule or shall, at the option of
Lessor, result in default as provided hereinafter.
8. SURRENDER: Lessee may at any time, by paying to Lessor all amounts then due as provided
herein, surrender this lease insofar as the same covers all or any portion of the land herein
leased and be relieved from further obligations or liability hereunder with respect to the land so
surrendered; provided that this surrender clause and the option herein reserved to Lessee shall
cease and become absolutely inoperative immediately and concurrently with the institution of any
suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of
its terms expressed or implied. In no case shall any surrender be effective until Lessee shall
have made full provision for conservation of the leased products and protection of the surface
rights of the leased land.
S. ASSIGNMENTS:
A. Fee for Assianments: Lessee, upon payment of a $100.00 fee and prior written consent of
Lessor (which shall not be unreasonably withheld), shall have the right to assign the entire
leasehold interest of said Lessee in all or part of the land covered hereby. Prior to written
approval by Lessor of assignment of this lease, Lessee (assignor) shall not be relieved of its
obligations under the terns and conditions herein. An assignment shall not extend the term
of this lease.
B. Partial Assianment: 1f any assignment of a portion, of the land covered hereby shall be
approved, a new lease shall be issued to the assignee covering the assigned land, containing
the same terms and conditions as this lease, and limited as to term as this lease is limited,
and the assignor shall be released and discharged from all further obligations and liabilities
as to that portion so assigned.
C. Lessee to Notify: Lessee shall notify Lessor of all assignments of undivided percentage or
other interests. Said interests will not be recognized or approved by Lessor, and the effect of
any such assignments will be strictly and only between the parties thereto, and outside the
terms of this lease, and no dispute between parties to any such assignment shall operate to
relieve Lessee from performance of any terms or conditions hereof or to postpone the time
therefore. Lessor shall at all times be entitled to look solely to Lessee or his assignee shown
on its books as being the sole owner hereof, and for the sending of all notices required by this
lease and for the performance of all terms and conditions hereof.
D. Filing with Lessor. Although not binding on Lessor, all instruments of every kind and nature
whatsoever affecting this lease should be filed with the Lessor.
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Carly Koppes, Clerk and Recorder, Weld County, CO
IIII MPAirnil��h ' h��'M F���II� wl4wtl ii4�is �I III
(Revised 0612014)
Small -Tract Oil and Gas Lease
Page 7
10. OVERRIDING ROYALTY: Any and all reservations or assignments or overriding royalties shall
be subject to approval by Lessor. The total of said overriding royaliies shall not exceed
five percent (5%), induding any overriding royally previously provided for unless production
exceeds a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas per
day (90 MCF/D). In the event production drops to this amount or less, any overriding royalties
which exceed five percent (5%) may be suspended. Lessor's approval of a reservation or
assignment of an overriding royalty shall not bind Lessor for payment of said overriding royalty
and shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as
provided by ROYALTY paragraphs herein.
11. OFFSET WELLS: Lessee agrees to protect the leased land from drainage by offset wells
located on adjoining lands not owned by Lessor, when such drainage is not compensated for by
counter -drainage. It shall be presumed that the production of oil and gas from offset wells results
in drainage from the leased land, unless Lessee demonstrates to Lessor's satisfaction, by
engineering, geological, or other data, that production from such offset well does not result in
such drainage, or that the drilling of a well or wells on the leased land would not accomplish the
purposes of protecting the deposits under the leased land. Lessor's decision as to the existence
of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender
this lease as to any such undeveloped acreage as designated by Lessor.
12. DEVELOPMENT: Upon discovery of oil and gas or either of them on the leased land, Lessee
shall proceed with reasonable diligence to develop said land at a rate, and to an extent,
commensurate with the economic development of the field in which the leased land lies.
13. POOLING CLAUSE: Lessee may at any time or times pool any part or all of said land or lease
or any stratum or strata with other lands and leases, stratum or strata, in the same field so as to
constitute a spacing unit to facilitate an orderly or uniform well -spacing pattern or to comply with
any order, rule, or regulation of the State or Federal regulatory or conservation agency having
jurisdiction. Such pooling shall be accomplished or terminated by filing of record and with the
Colorado Oil and Gas conservation Commission a declaration of pooling, or declaration of
termination of pooling, and by mailing or tendering a copy to Lessor,. Drilling or reworking
operations upon or production from any part of such spadng unit shall be considered for all
purposes of this lease as operations or productions from this lease. Lessee shall allocate to this
lease the. proportionate share of production which the acreage in this lease included in any such
spacing unit bears to the total acreage in said spacing unit.
14. UNITIZATION — COMMUNITIZATION: In the event Lessor permits the land herein leased to be
included within a communitization or unitization agreement, the terms of this lease may be
deemed to be modified to conform to such agreement. When only a portion of the land under this
lease is committed by an agreement, Lessor may segregate the land and issue a separate lease
for each portion not committed thereunder, the term of such separate lease shall be limited as to
the original term of this lease. The terms of the lease on that portion remaining in the unit shall
be deemed to be modified to confomn to such agreement. Non -producing leases shall terminate
on the first anniversary date of the lease following the termination date of the unit or part thereof
modifying the lease, but in no event prior to the end of the primary term of the lease or the
extension term of the lease.
15. PRODUCTION: Lessee shall, subject to applicable laws, regulations and orders, operate and
produce all wells upon the leased land so long as the same are capable of producing in paying
quantities, and shall operate the same so as to produce at a rate commensurate with the rate of
production of wells on adjoining lands within the same field and within the limits of good
engineering practice, except for such times as there exist neither market nor storage therefore,
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Carly Koppes, Clerk and Recorder, Weld County, CO
It'll
(Revised 08x2014)
Small -Tract Oil and Gas Lease
Page 8
and except for such limitations on, or suspensions of, production as may be approved in writing
by Lessor. Lessee shall be responsible for adequate site security on all producing properties.
16. SHUT-IN WELLS: If Lessee shall complete a well on the leased land productive of gas and
Lessee is unable to produce such gas due to a lack of suitable market therefore, Lessor may
grant Lessee suspension of his obligations to produce hereunder until a suitable market for such
gas can be found, and during any such suspension period, it shall be deemed that gas is being
produced hereunder in paying quantities. Except, however, that beginning on the anniversary
date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to
Lessor a shut-in royalty equal to $2.50 per acre of the lease per annum. The minimum amount of
such shut-in royalty payment shall be $240. Each year's shut-in royalty shall be forfeited to
Lessor except for the shut-in royalty paid for the year during which the well begins production.
The maximum extension of the lease, due to the existence of a shut-in well, shall be five (5) years
beyond the extension term as described in the EXTENSION paragraph herein. The granting of
any further extensions shall be at the sole option of Lessor.
17. OPERATIONS: Exploration, drilling or production operation, induding permanent installations,
shall be in compliance with all Colorado Oa and Gas Conservation Commission and State of
Colorado Regulations. Reports required to be filed with the Colorado Oil and Gas Conservation
Commission shall be made immediately available to Lessor upon request.
18. NOTIFICATION: Lessee shall notify Lessor and the surface lessee or surface owner of the
location of each drill site at least two weeks prior to commencing drilling operations thereon.
Lessee shall notify Lessor before commendng to plug and abandon any well by copy of Lessee's
request for approval or sundry notice of intent to plug and abandon.
19. BONDS: Lessee shall be liable for all damages to the surface of the land, livestodc, growing
crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No
operations shall be commenced on the land hereinabove described unless and until Lessee shall
have filed a good and suffident bond with Lessor, in an amount to be fixed by Lessor, to secure
the payment for such damages as may be caused by Lessee's operaticris on said land and to
assure compliance with all the terms and provisions of this lease, the laws of the State of
Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for
the life of production of any well.
20. SETTLEMENT: Lessee shall not remove any machinery, equipment or fixtures placed on said
land, other than drilling equipment, nor draw the casing from any well unless and until all
payments and obligations currently due Lessor under the terns of this lease shall have been paid
or satisfied. Any machinery, equipment or fixtures left on this land for a period of more than
six (6) months after the expiration hereof, shall automatically become the property of Lessor.
21. OTHER DISCOVERY: Should Lessee discover any valuable products other than oil and gas, on
or within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in
which event Lessee and Lessor may negotiate a provision for production of such discovery.
22. AtUr It This lease does not grant permission, express or implied, to Lessee for water
exploration, drilling, or establishing water wells without the written permission of the surface
owner. If Lessor is the surface owner, said permission shall not be unreasonably withheld. If
Lessee desires to establish or adjudicate any water right for beneficial use on the leased land,
any such adjudication or application shall be in the name of Lessor if Lessor is the surface owner.
The same shall apply to any non -tributary water rights established on the leased land which may
be put to beneficial use off said land.
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Carly Koppes, Clerk and Recorder, Weld County, CO
poi ; n Kra � "Ill
(Revised 08/2014)
Small -Tract Oil and Gas Lease
Page 9
23. DEF ULT: Upon failure or default of Lessee to comply with any of the terms and provisions
hereof including, but not limited to, the failure to comply with laws, rules and regulations
governing Colorado oil and gas operations, Lessor is hereby authorized upon notice and hearing,
as hereinafter provided, to cancel this lease as to all of the leased land so claimed or possessed
by lessee hereunder. In the event of any such default or failure, Lessor shall, before making any
such cancellation, send to Lessee by certified mail, to the post office address of said lessee as
shown by the records of Lessor, a notice of intention to cancel for such failure or default,
specifying the same, stating that if within forty-five (45) days from the date of mailing said notice,
Lessee shall correct such failure or default, no cancellation will be made. If such failure or default
is not corrected within forty-five (45) days after the mailing of such notice, and if Lessee does not
request a hearing on such notice within forty-five (45) days, this lease will terminate and be
canceled by operation of this paragraph without further action by Lessor, or further notice to
Lessee.
24. EXTENSION: If Lessee fails to make discovery of oil and gas, or either of them, in paying
quantities during the primary term hereof, or during drilling operations commenced during the
primary term hereof, Lessee may make written application to Lessor for an extension of this
lease. The granting of such extension shall be at the sole option of Lessor, according to the
following conditions:
A. Extension Limit: No lease term will be extended for more than six (6) months from the
original expiration date.
B. Extension Payment: The Lessee shall pay to the Lessor the sum of one-third of the original
bonus.
C. No Chance in Royalty: The royalty will remain the same.
25. }TOLD HARMLESS: Lessee shall indemnify Lessor against all liability and loss, and against all
daims and actions, including the defense of such claims or actions, based upon, or arising out of,
damage or injury, including death, to persons or property caused by, or sustained in connection
with, operations on this leased land or by conditions created thereby, or based upon any violation
of any statute, ordinance, or regulation.
26. CONDEMNATION: If the leased land shall be taken in any condemnation proceeding, this lease
shall automatically terminate as of the date of taking. The award for such condemnation shall be
paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves,
in which event 21% of such speclfic award(s) shall be paid to Lessor in lieu of royalty lost by
virtue of the condemnation. Improvements shall be removed by Lessee per terns in the
SETTLEMENT paragraph herein. If only a portion of the leased land is taken by condemnation,
Lessor may, at its option, terminate this lease or terminate only that portion of the lease so taken.
27. ERRORS: Every effort is made by Lessor to avoid errors in all procedures including, but not
limited to, auction listings and lease preparation. Lessor shall not be liable for any inconvenience
or loss caused by errors which may occur. Lessee shall notify Lessor immediately upon
discovery of any errors or discrepancy whatsoever.
28. ARCHAEOLOGY: Lessee shall not destroy, disturb, mar, collect, remove or after any prehistoric
or historic resources of any kind on Weld County lands as provided by law. These resources
include, but are not limited to, all artifacts of stone, wood or metal, pictographs, structures, and
bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the
State of Colorado Archaeologist immediately.
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Carly Koppes, Clerk and Recorder, Weld County, CO
IA I'll'
(Revised 06/2014)
Small -Tract Oil and Gas Lease
Page 10
29. DEFINITIONS: For purposes of this Lease, the following definitions apply.
A. "Products" refers to any and all substances produced on the leased property, including all oil
and gas, found on or under the leased property.
B. "Market Value" shall mean for gas and products therefrom (i) the gross price at which gas or
products therefrom are sold pursuant to a Gas Contract, as defined in paragraph 2C, or (ii) if
not sold pursuant to a Gas Contract, as defined in paragraph 2C, the highest gross price
reasonably obtainable for the quantity of gas or products available for sale, through good faith
negotiations for gas or products produced from the Leased Premises at the place where such
gas or product is available for sale on the date of such a contract with adequate provisions for
redetermination of price at intervals of no less frequency than two (2) years to ensure that the
production is being sold for no less than the current market price. Included within the
definition of "Market Value" as used herein is the presumption that Gas Contracts are
arms -length contracts with purchasers who are not subsidiaries or affiliates of Lessee.
"Market Value° shall never be less than the amount actually received by the Lessee for the
sale of hydrocarbons.
C. "Affiliate" is defined as the parent company or a subsidiary of Lessee, a corporation or other
entity having common ownership with Lessee, a partner or joint venturer of Lessee with
respect to the ownership or operation of the processing plant, a corporation or other entity in
which Lessee owns a ten percent or greater interest, or any individual, corporation or other
entity that owns a ten percent or greater interest in Lessee.
D. 'Costs' and/or 'Expenses° shall mean all costs of gathering, production, transportation,
treating, compression, dehydration, processing, marketing, trucking or other expense, directly
or indirectly incurred by Lessee, whether as a direct charge or a reduced price or otherwise,
including fuel use attributable to any of the services listed above. "Costs" or 'Expenses' also
include depreciation, construction, repair, renovation or operation of any pipeline, plant, or
other facilities or equipment used in connection with the treating, separation, extraction,
gathering, processing, refining, transporting, manufacturing or marketing of hydrocarbons
produced from the Leased Premises or lands pooled therewith.
E. "Gas" as used herein shall mean all gases (combustible and noncombustible) including, but
not limited to, all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
F. "Oil and gas" as used herein shall include all substances produced as by-products therewith,
including, but not limited to, sulfur.
G. "Paying quantities" as used herein shall mean and refer to quantifies of oil and gas or of
either of them suffident to pay for the current cost of producing same.
30. HEIRS AND ASSIGNS: The benefits and obligations of this lease shall inure to, and be binding
upon, the heirs, legal representatives, successors or assigns of Lessee; but no sublease or
assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has
been approved by Lessor as explained in the ASSIGNMENTS paragraph provided above.
31. WARRANTY OF TITLE: Lessor does not warrant title to the leased premises, but it shall, upon
request, allow Lessee access to such abstracts and other title papers as it has in its files. There
shall be no obligation on Lessor's part to purchase new or supplemental or other title papers, nor
to do any curative work in connection with titre to the subject lands.
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Carly Koppes, Clark and Recorder, Weld County, CO
14111SMI KIWI ill II
(Revised 06/2014)
Small -Tract Oil and Gas Lease
Page 11
32. FORCE MAJEURE: Neither party shall be responsible for delays or failures in performance
resulting from acts or occurrences beyond the reasonable control of such party, including, without
limitation: fire, explosion, power failure, flood, earthquake or other act of God; war, revolution, civil
commotion, terrorism, or acts of public enemies; any law, order, regulation, ordinance, or
requirement of any govemment or legal body or any representative of any such govemment or
legal body, or labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts.
In such event, the party affected shall be excused from such performance (other than any
obligation to pay money) on a day-to-day basis to the extent of such interference (and the other
party shall likewise be excused from performance of its obligations on a day -today basis to the
extent such party's obligations relate to the performance so interfered with).
33. SURVEYS. ABSTRACTS. TITLE OPINIONS AND CURATIVE WORK:
A. If Lessee shall cause any of the exterior or interior lines of the property covered by this lease
to be surveyed, Lessee shall fumish Lessor a copy of such survey. Lessee shall furnish
Lessor, within a reasonable time, with a copy of all maps submitted to the Corps of Engineers
of the United States Army, Railroad, or other governmental or official agency or department
having jurisdiction, showing the proposed location of all roads, pipelines, canals and drip sites
on the Leased Premises.
B. All abstracts of title, whether new or supplementary, obtained by Lessee and covering the
subject lands shall become the property of, and be delivered to, Lessor after Lessee has
completed its title examination and curative work, subject, however, to the right of Lessee to
use such abstracts upon request at any time during the tern of the lease. Therefore, if
Lessee causes an abstract of titre to be prepared covering the property herein leased, or any
portion thereof or if Lessee shall cause the title to be examined or should obtain a title opinion
or title certificate upon the property herein leased, Lessee agrees to fumish Lessor a copy
thereof within two (2) weeks of Lessee's receipt thereof. Lessor agrees that neither Lessee
nor the attorney or firm of attomeys rendering the opinion or certificate shall be responsible to
Lessor for its correctness, the said opinion or certificate being furnished to Lessor simply for
its own convenience, information and personal use. Similarly, if any curative material is
obtained by Lessee, a copy thereof shall immediately be furnished Lessor under the same
conditions of non -liability on the part of the Lessee or the persons who may have obtained or
prepared the same.
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
ATTEST'
Weld n . ler k
By:
Deputy CI
LESSOR:
BOARD OF COUNTY COMMISSIONERS
WELD CO NTY, COLORADO
By: -
Steve Moreno, Pro-Tem
NO/ 1 6 2020
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Carly Koppes, Clerk and Reoorder, Weld County, CO
IIIII rink MSM ilh.1l94a.1hhilillitik Ill III ,,20,0 - 339
Small -Tract ON and Gas Lease
Page 12
LESSEE:
EXTRACTION OIL & OAS, INC.
MATT OWENS, CEO
STATE OF6A0 0'0! )
se
COUNTY OFPOUE )
The foregoing Instrument was acknowledged before me the 2' 1 day of /t5 tJO
20a, by /21 at-eil �J
Prbited Name and Title
my h and official seal.
Public
/flao2i-4
My Commission Expires:
JACK NAPE
Notary Public
State of Colorado
Notary ID 9 20204008918
My Commission Expires 02-19.2024
LESSEE: (second signature if applicable)
Company Name
Signature
Printed Name and Ttle
STATE OF )
)se
COUNTY OF )
The foregoing instrument was aciknowiedged before me this day of
20 . by
Witness my hand and official seal.
Notary Public
My Commission Expires:
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Carly Koppes, Clerk and Reoorder, Weld County, CO
II�W�h Bill
(Revised 08/2014)
Small -Tract Oil and Gas Lease
Page 13
N4A
Pis ova a\
1,4373 ACRES
LEGAL DESCRIPTION:
EXHIBIT A
2.8746 acres of land, more or less, of which 0.000 acres are centerline presumption acres, being a portion of
Lots 1 and 2 of the SE/4SE/4, Union Colony, described by metes and bounds in that certain Rule and Order
dated May 18, 1964, recorded under Reception No. 1437581, lying in the SE/4SE/4 of Section 17, Township
5 North, Range 65 West, 6th P.M.
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Carly Koppel, Clerk and Reoorder, Weld County, CO
!kik/1 111III
(Revised 08/2014)
349% ‘1.yL4.it
katordsd 0 I./ : ��.►46,ek. "`� .M
�M. ��� *81_ Ann Spowaq Recorder
S -I
zN THE DISTRICT COURT IN AND FOR THE
COUNTY OF WELD ,AND
STATE OF COLORADO
BOARD OF COUNTY COMMISgONERS
OF THE COUNT"! OF WELD, and the
DEPARTMENT OF HIGHWAYS i -
STATE OF COLORADO,
Petitioners,
VS*
j.
DAVID M. LEWIS; MARLETTE LEWIS;
MOUNTAIN SAVINGS AND LOAN ASSOCIATION;
J. EAROLD SELBY; '{ LENXOLA SELBY;
JAMES H. SHELTON`as Public Trustee
of Weld County; and CHARLES O. BURSIEL4
as Treasurer of Weld County,
Respondents.
CIVIL ACTION NO. 14852
RULE AND ORDER
THIS MA'VEH came on regularly for hearing this day
upon the Commissioners, Certificate of Ascertainment filed
herein on the "a --day of March, 1964, which Commission was
duly appointed to determine the compensation to be allowed
the respondents interested in Parcel No. 69 Revised, and the
access rights appurtenant thereto; and it appearing to the
Court from the records and files herein that the respondents,
David M. Lewis and Mardette Lewis, are the record owners of
said parcel, -'that it is subject to a Deed of Trust recorded
in Book 1526 at page 545 of the records of the Clerk and
Reaorder of Weld County in favor of Mountain Savings and Loan
Association, and a Deed of Trust recorded in Book 1542 at
page 582 of said records in favor of J. Harold Selby and
•
iNDEAF.33
1 -4g -?!.3_
parties as required by law) and that the Commission, after
hearing the proofe and allegations of the parties, and after
viewing the premises, did find and determine in accordance
with Chapter- 50, Article 1, Section 18, Colorado Revised
Statutes 1953:
1. The accurate description of Parcel No. 69 Reprised,
and access.
2. The value of the land or property actually taken
to be $6,314.00.
3. The damages, if any, to the residue of such land
or property to be $525.00.
4. The amount and value of the benefit, if any, to
be none.
The Court further finds that the petitioner has hereto-
fore deposited with the Clerk of this Court the total sum of
$7,490.93, which represents the amount of the award in the sum
of $6,839.00, respondents, allowable costs in the sum of $367.50,
and interest on the award in the sum of $284.43, and therefore
it is,
ORDERED, RAVED AND DECD that Parcel No. 69 Revised,
described in Exhibit "A" attached hereto and incorporated herein
by reference, and a description of the access line over which
ingress and egress is to be denied, described In Exhibit "B",
attached hereto and incorporated herein by reference, have been
duly and lawfully taken by the petitioner pursuant to the Statute
and Constitution of the State of Colorado, that the interests of
the respondents in said parcel have been acquired by the peti-
tioner and the title to said property, together with all appur-
tenances thereunto belonging, is hereby vested in the petitioner
for the use and purposes specified in the Petition in Condemnation
J4,17581
t'3_'�58 p
5-3
Recorder of Weld County, in like manner and with like effect
as if it were a geed Of conveyance from the canners and parties
interested to the petitioner her in.
DATED this /S/1 (jay of ?"-k2-4-,► 1
BY/ HE COURT:
cf ( 1 Z u1 ,:_/2
t
\\1C'7' e._,,
�1 .,........
• c.�rk,t L'svlct- �d�e
.311 _�•_ .7
A.D. 1964.
t-
143'7581
5-y.
EXHIBIT "A"
.Legal Description
Project No. U 006-1(22) - Greeley By -Pass
Parcel No. 69 Rev.
A tract or parcel of land No. 69 Rev. of Colorado Department of
Highways' project No. U 006-1(22). containing 2.87 acres, more or
less, in the SE4 of the SE4 of Section 17, Township 5 North,
Range 65 West, of the Sixth Principal Meridian in Weld County,
Colorado, said tract or parcel being more particularly described
as follows:
That part of Lots 1 and 2 of the SE4 of the SE4 of Sec. 17, T. 5
N., R. 65 W., according to the subdivision of lands by the Union
Colony of Colorado, described as follows:
Beginning at a point on the N. line of Lot 1 of the SE4 of the SE4
of Sec. 17, T. 5 N., R. 65 tip!., from which the SE corner of Sec. 17
bears S. 17° 05' E., a distance of 1,394.2 feet;
1. Thence S. 0° 15' E., a distance of 332.3 feet to
the S. line of said Lot 1;
2. Thence N. 89° 22' W., along the S. line of said
Lots 1 and 2, a distance of X38.5 feet;
3. Thence N. 56° 00' E., a distance of 39.2 feet;
4. Thence N. 11° 36' E., a distance of 316.0 feet
to the N. line of said Lot 2;
5 Thence S. 89° 19' 30" E., along the N. line of
said Lots 1 and 2, a distance of 341.0 feet, more
or less, to the point of•beginning.
The above described parcel contains 2.87 acres, more or less.
EXHIBIT "A"
Parcel No. 69 Rev.
1437581
EXHIBIT "B"
Access Description
Project No.' U 006-1(22) - Greeley By -Pass
Parcel No. 69 Rev.
EASTERLY LINE:
Beginning at a point on the N. line of Lot 1 of the SE* of the SE, -
of Section 17, Township 5 North, Range 65 West of the Sixth Prin-
cipal Meridian in Weld County, Colorado, according to the subdivi-
sion of lands by the Union Colony of Colorado, from which the SE
corner of Section 17 bears S. 17° 05' E., a distance of 1,39-.2
feet;
1. Thence S. 0° 15' E., a distance of 332.3 feet to
the S. line of said Lot 1.
Exhitit "B"
Parcel No. 69 Rev.
I
17-21
Treatment of Minerals Under Lands from Condemnations
In 2008 the Colorado legislature amended the statutes governing eminent domain and the
taking of minerals under lands used for highway purposes to be limited exclusively to that which
is necessary for subsurface support thereby preventing the taking of oil, gas and other
hydrocarbons. 2°5 However, prior to 2008 the statutory scheme did not place any express limitation
upon the ability of the state to acquire the minerals in condemnation proceedings, and left open
the possibility that property condemned for highway pumoses also included the mineral estate.
In the Dept of T'ransp. v. Glpsrrm Ral7 h Co., LLC, in a majority decision the Colorado
Supreme Court overfilled the Court of Appeals' prior decision that `prohibits the department from
acquiring mineral interests in laird condemned for highway purposes."2°6 Therefore, (guotiila the
dissent) "when the Department of Transportation condemned property for a state highway prior to
2008, it also received title to the subsurface mineral estate lying beneath the laird necessary to build
the highway." 2°7 The ruling of the case sloes not expressly state that prior to 2008 all minerals
underlying condemnations for high -way purposes were included in eminent domain proceedings
but rattler leaves open the prospect that minerals may have been taken by the State.
The Materials Examined include the following orders concerning the ownership of lands
previously condemned for highway purposes:
1 Rule and order dated May 7, 1962, recorded under Reception No. 138 3295, City
of Greeley, Board of County Commissioners of the County of Weld, and the
Department of Highways, State of Colorado, et al as Petitioners and Lewis 1\I.
Black, et al as Respondents, the District Court of Weld County, Colorado
concerning Tract 17S-309;
? . Rule and order dated March 30, 1964, recorded udder Reception No. 1437581,
Board of County Commissioners of the County of Weld, and the Department of
°5 See Senate Bill 08-041.See Colo. Rey-. Stet § 43-1-2008(4) (2008) See Colo. Rey-. Stet ti 3$-1-105(4) (2008).
°6 244 P.3d 127 (Colo. 2010 ) paLre 133
'°' Id at 128.
Highways, State of Colorado, et a1 as Petitioners and David M. Lewis and Mardette
Lewis, et al as Respondents, the District Court of Weld County, Colorado
concerning, Tract 17S-305;
3. Rule and Order dated March 17, 1964, recorded under Reception No. 1.33598,
Board of County Commissioners of the County of Weld, and the Department of
Highways, State of Colorado, et al as Petitioners and L.S. Perry and Helen C. Perry,
et al as Respondents, the District Court of Weld County, Colorado concerning
Tract 17S-300.
The subsequent devolution of title for the mineral estate of the Respondents and following
tracts is as follows:
1. The Estate of Helen C. Perry, Cheryl B. Lamberson as Personal Representative for
Tract 17 S-3 00, presently unleased, suspended;
2.
Gil and Gas Investors, LLC and David M. Lewis owning Tract 17S-305 in equal
pats, covered by Subject Lease 3375387, suspended;
The Estate of Lewis M. Black, deceased, owing Tract 17S-309, covered by Subject
Leases 3375392 and 3303930, suspended. (See Confluent 17-22 for further
discussion).
Given the lack of a bright -line rule of law in the Gvpszini case, the examining attorney has
suspended all parties' interests in Tracts 17S-309, 17S-300, and 17S-305 pending the outcome of
the requirement below. However, given factual similarity of the orders and the Gypsum case, the
examining attorney has presumptively credited title to said tracts with the Petitioners.
Requirement 17-214.k: Extraction should (1) hold all parties interests
in suspense covering Tracts 17S-309, 17S-300, and 17S-305, (2) should obtain Quiet Title
Decrees ascertaining all parties interests in the lands and leasehold thereto (3) then file the
same of record in Weld County, Colorado, and submit the same to examining attorney for
review and comment.
Requirement 17-218: For greater security of title, Extraction should
obtain and file of record in Weld County, Colorado a protective lease covering Tracts 17S-
309, 17S-3oo, and 17S-305 pending the outcome of the requirement above and submit the
same to examining attorney for review and comment.
EXTRACTION OIL & GAS, INC
370 17TH STREET, SUITE 5300
DENVER, CO 80202
720-481-2380
Page 1 of 1
VENDOR No.
VENDOR NAME
CHECK DATE
CHECK No.
CHECK TOTAL
4317
WELD COUNTY COLORADO
Sep -25-2020
067180
$1,724.76
VOUCHER
VENDOR INV # INV DATE
TOTAL
AMOUNT
PRIOR PMTS
& DISCOUNTS
NET
AMOUNT
09 -AP -1242 CKR09142020E 09/14/20
TOTAL INVOICES PAID
R- ccsClop\-.
ciWZ, ktA
1,724.76
0.00
OCT U Z 202::
"Jt7cLD COUNTY
COMMISSIONERS
PAYEE: DETACH THIS STATEMENT BEFORE DEPOSITING
1,724.76
1,724.76
Lto O �
Sec i on 17, T5N, R65V4
SEE/SE4
E05
0
7
2.8746 acres
C
Township/Range
Section
litr Qtr Sections
j Parcels
[inch = 2E,0 ₹P -r
Disclaimer
This product has been developed solely for internal use only by Well County.
The GIS database, applications, and data in the product is subject to constant change and the accuracy
and completeness cannot be and is not guaranteed. The designation of lots or parcels or land uses in
the database does not imply that the lots or parcels were legally created or that the land uses
comply with applicable State or Local law. UNDER NO CIRCUMSTANCE SHALL ANY PART THE
PRODUCT BE USED FOR FINAL DESIGN PURPOSES. WELD COUNTY MAKES NO WARRANTIES
OR GUARANTEES, EITHER EXPRESSED OR IMPLIED AS TO THE COMPLETENESS, ACCURACY,
OR CORRECTNESS OF SUCH PRODUCT, NOR ACCEPTS ANY LIABILITY, ARISING FROM ANY
INCORRECT, INCOMPLETE OR MISLEADING INFORMATION CONTAINED THEREIN.
Jessica Reid
From:
Sent:
To:
Subject:
Attachments:
Jack Hape <jhape@extractionog.com>
Friday, October 30, 2020 10:27 AM
CTB-oil and Gas Leasing
RE: Weld County Small Tract Leases
Weld County Requirement.docx
1JCaution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Hi Jess,
First off I would like to apologize for such a late response to your request and hope this email finds you well!
Below there are snippets from title that show which tracts are unleased and owned by Weld County. As for the back-up
information on those certain tracts that Weld County has a mineral ownership of less than 100%, I have attached the
title requirement from the Title Attorney that prepared the opinion and briefly explained below.
Comment 17-21, in the attached word document, should define the reason that Weld County does not hold 100%
mineral ownership For Tracts 17S-300, 17S-305 and 17S-309. Requirement 17-21A states that Extraction should hold all
parties in suspense and obtain Quiet Title Decrees ascertaining all parties interest in order to move the parties from a
suspense standing. Extraction is currently in the process of curing this title requirement. However, requirement 17-21B
states that extraction should obtain and file a lease for greater security of title for each tract.
As for Tract 13 -SE -1, comment 13-35, in the attached word document, will explain the history of this tract and the
mineral interest division. Requirement 13-35 states that Extraction should obtain Quiet Title Decrees ascertaining all
parties interest in the lands. Extraction is currently working to cure this title requirement as well.
'Working Interest Summary
* ' orking Mineral
Interest in Interest covered'.
Lease by Lease
50.000000%
- .. ,.
T.he
County of
Weld,
State of
Colorado
1
-S _1
.::::.C1_
100.0W0O09
%t
4; Ci_0 0
t: t ,:O
C0.inty
of Weld,
Colorado
1
S-305
UNL
100.0000009,-.I
.50_000090%
r
k
it
Weld
� othi y Colorado
16-7.
T TNT
100..000000%
1
cl�
00.000000:1".6
d
Count: r_L t
t .? do
16-.14
LEI
100.000000%
00:0%
1003_00 000%
Weld
i
Tract
Tract Description
1 7S-300
2.3679 acres of land,
more or less_,
of which.
.O1IPO acres are centerline
presumption
acres, being that:
portion of Lots 7 and 8, TEM:
described by mares
and
bounds in that certain
Rule and Order dated March
17„ 19
64,, recorded. under
Reception
No. 1433598, lying
1.7; Toiynship
5 North; Range 65 West,
6th. Plsl.
13 -SE -1
1.019 acres, more
Of
less, of which 0_072 are centerline: presumption awes: described
as a parcel of 12nd.
No_ 4 of the. State.
Departmen
EILS-U
034-1(11) as more
described by metes and. bounds
in
that certain Rue and Order Civil Action No_ 2 368 recorded
particdarlv
160
x`9O._ _ lying in the SE54SE`24 of Section 13_ Township
5 North, Range • West 6th.
17S-305
2,8746 acres of land, move or less, of which OsiXt0
acres are cent'erlinepresumption
arms., being a pro of Lots I andof the SE'4!
described by metes and bounds
in
that certain Rule and
Order dated
May 18.1
9'64: receded
!under
Reception. N.0.
.2
1437581,
Piing in
Towns 5 North, age 64 'West_ 6th
PAL
17S-309
x.4.-49
acres
of land,
more orless, of which 0.000 acres are centerline presumption acres,. those two portions of Colorado
Departmed
1 as described by me=tes mid beds in that certain Rule
and. Oder
dated Issitta:tt 7, 1962, recorded. Wider ReceptionNo_ 13832
portions of land timing within 400 feet of the
centerline of the Union Pam woad: bing in the SE4SE 4
of Section 17, Township 5
.
KM.
16-9
x}_61O3 land,
less, berg the
South teet the
SW. 4
Section
16,
Township
5 North, Range 65 West 6th 13241
acres of
more or
30 of
-ISM-:
of
of the
16-1-
for acres of land, more Of less, being the South 20 feet of the
SE'4SW4 of Section 16, Township 5 No
�artge 65. West of the 6th PAL
«
I hope this information covers what you need, if not please reach out to me.
Regards,
Jack Hape
Land Technician
Extraction Oil & Gas, Inc.
370 17th Street, Suite 5300
Denver, CO 80202
Office: (720)-354-4624
jhape@extractionog.com
From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us>
Sent: Monday, October 5, 2020 11:55 AM
To: Jack Hape <jhape@extractionog.com>
Subject: Weld County Small Tract Leases
[EXTERNAL]
Hi Jack,
2
am in receipt of the six small tract oil and gas leases you sent. I do not show these parcels in our system,
which is not to say we don't own them, it just means they haven't been leased before. Please email a Title
Opinion, or Quit Claim Deed, etc. showing that weld county owns the mineral interests for each of the six
tracts, as well as documentation showing we own a lesser interest than 100% in any given tract. Thanks!
If tlis is an oil and gas communication please use the email d. ress
Sad asleasing(a�weldgov.com osed to my personal e ail adoires
Jess Reid
Deputy Clerk to the Board
Weld County
1150 O Street
Greeley, CO 30631
tel: 970-400-4212
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise
protected from disclosure. If you have received this communication in error, please immediately notify sender by return
e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
3
*PLEASE KEEP AND SCAN IN TYLER*
Notes for Distribution Clerk
Please send the Lease to Recording
When the Oil and Gas Lease comes back from Recording, please be
sure to make a copy for our files and mail the original, recorded lease
to:
Please mail to:
Jack Hope
Land Technician
370 17th Street, Suite 5300
Denver, Colorado 80202
Please include the following in the mailing:
*Only the Original Recorded Lease and copy of resolution - DO NOT
SEND BACK-UP OR MAP, THAT STAYS WITH OUR COPY OF THE
LEASE.
Thanks.
Jess
Date sent to Recording I I/2.5 /IQ
Date mailed outat t raft I
B
O 1,
Hello