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Home My WebLink About730003.tiff • AUTHORIZING OIL AND GAS LEASE COVERING CERTAIN PURPORTEDLY OWNED COUNTY MINERAL LANDS RANGE 66, TOWNSHIP 1 NORTH, SECTION 24 NE4 Ptns: 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, Thomas G. Vessels of 180 Cook Street, Denver, Colorado, has offered to lease certain mineral lands purportedly owned by Weld County, containing 10.66 acres, more or less, and to pay therefore ($53.30) for the execution of the necessary lease with annual delay rental of $1 .00 per net acre after the first year, and WHEREAS, it is desirous and in the best interest of Weld County to accept said offer to lease the requested mineral acreage. NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Weld County, Colorado, that the offer of Thomas G. Vessels as hereinabove recited, be and it is hereby accepted, for a term of two years, and BE IT RESOLVED, that the mineral acreage is as listed below: Township 1 North, Range 66 West of the 6th P. M. Section 24: NEa tracts described as follows: GREEN ACRES SUBDIVISION - All streets and drainage ditches dedicated to the Public Use per the recorded plat, containing 10.66 acres m/1 The above and foregoing resolution was, on motion duly made and seconded, adopted by the following vote: AYES: - � C, � � , THE D %ANT MMISSIONERS WELD COU+'�Y, CbLORADO DATED: 18, 1973c::_________D , - APPROVE COUNT AT ORNEY LEo /OS t) [-2, oc-0 C.;92 Producers 88 (272)a-e3—Colorado OIL, GAS AND MINERAL LEASE THIS AGREEMENT made this 18th day of April 173 between BOARD OF COUNTY COMMISSIONERS,f WELD COUNTY, COLORADO Lessor (whether one or more), and.....THOMAS. G.......1T.:..S, ^ELS, 180 COok....S.tree.t., Denver, Colo ....B':r..^..:.6 Lessee, WITNESSETH: I. Lessor in consideration of Fifty-three and 30/110tbs Dollars ($..5.3..3.0 ), 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 o£ investigating, exploring, prospecting, drilling and mining for and producing oil, gas, other hydrocarbons and, without restriction to such enumerated minerals, all other minerals whether similar or dissimilar to those particularly specified herein, laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees, the following described land in Weld County. Colorado, to-wit: Township 1 NortL, Range 66 West of 6th P.M. Section 24: NE/4, tracts described as follows: GRE'.',N ACRES SUBDIVISION - All streets and dr inFlue ditches dedicated to the Public Use, per te recor-'e ' plat, containing 10.66 acres, more or less. of Section 24 Township 1 North Range 66 t-est In addition to the land above described, Lessor hereby grants, leases and lets exclusively unto Lessee to the same extent as if specifically described herein all lands owned or claimed by Lessor which are adjacent, contiguous to or form a part of the lands above particularly described. in- cluding all oil, gas, other hydrocarbons and all other minerals underlying lakes, rivers, streams, roads, easements and rtglis-eg�ay which traverse or adjoin any of said lands. For rental payment purposes, the land included within this lease sityy��I1 be deemed to contain acres, / whether it actually comprises more or less. w0 2 2. Subject to the other provisions herein contained, this lease shall be for a term of years from this date (called "primary term") and as long thereafter as oil, gas. other hydrocarbons, or other mineral is produced from said land he eunder, or drilling or reworking operations are conducted thereon. 3. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession, paying 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, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one-eighth of the amount realized from such sale: (c) on all other minerals mined and marketed, one-tenth either in kind or value at the well or mine, at Lessee's election, except that on sulfur the royalty shall be fifty cents (50O per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except water from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting any so used. If a well capable of 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 the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the Sum of$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:414D-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 in -• tiona l ask of Greeley Beekof Greeley, Colo. 8n631 which bank and its successors are Lessor's agent and shall continue as the depository for all rentals payable hereunder re$$..ardles;of changes in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor) the sum o₹ Ten and b6 l �t�'S - Dollars ($ 10.66 ), (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a 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 madein 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 succeeded by another bank,or for any reason fail or refuse to accept rental, Lessee shall not be held in default for failure to make such payment or tender of rental until thirty (30) days after Lessor shall deliver to Lessee a proper recordable instrument, naming another bank as agent to receive such pay- ments or tenders. The down cash payment is consideration for this lease according to its terms and shall not be allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or to the depository above named or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all- obligations as to the acreage surrendered. and thereafter the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or releases. 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 according to Lessee's records or to a Lessor who, prior to such attempted payment or deposit, has given Lessee notice, in accordance 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 the same manner as if such erroneous rental payment or deposit had been properly made, provided that the erroneous rental payment or deposit be cor- rected within 30 days after receipt by Lessee of written notice from such Lessor of such error accompanied by any documents and other evidence neces- sary to enable Lessee to make proper payment. 5. Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, if operations for drilling an additional well are not commenced or operations for reworking an old well are not pursued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall resume the payment of rentals. Upon resumption of the payment of rentals, Section 4 governing the payment of rentals, shall continue in force just as though there had been no inter- ruption in the rental payments. If during the last year of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery of oil, gas, or other hydrocarbons before or during the last year of the primary term the production thereof should cease during the last year of said term from any cause, no rental payment or operations are necessary 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 commenced within sixty (60) days after such cessation of production; if production is restored or additional production is discovered as 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, 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 to order to properly develop and operate said premises, such pooling to be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty (40) acres. for oil, and not exceeding six bundled and forty (640) acres, plus an acreage tolerance of ten per cent (10!9) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by govern- mental authorities having jurisdiction.Lessee may pool or combine acreage covered by this lease,or any portion thereof. as above provided, as to oil or gas in any one or more strata, and units so formed need not conform in size or area with the unit or units into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into other units.Lessee shall execute in writing and place of record an instrument or instru- ments identifying and describing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be considered for all purposes, except the payment of royalties, as if such operations were on or such production were from or such completion were on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease. In lieu of the royalties elsewhere herein specified. Lessor shall receive from a unit so formed, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder contain less than the maximum number of acres hereinabove specified,then Lessee may at any time thereafter,whether be- fore or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is so enlarged, Lessee shall execute and place of record a supplemental declara- tion of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not become effective until 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 deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and. Par- ticularly. all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof, shall hereafter be operated under any 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 shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and the 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 executing the same upon request of Lessee. 8. Lessee shall have the right at any time without Lessor's consent 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 remove all property and fixtures placed by Lessee on said land, including the right to draw and remove all casing. K'hen required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any operations of Lessee. ' 69��` 1613'769 3-,2/ Y The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No change in the ownership of the land, or any interest therein, shall be binding on Lessee until Lessee shall be furnished with o 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 hereby r ete -^^ ^g.`o" to n^feosl as one to -^'d '^,g —A agrees that Lessee at its option may discharge any tax, mortgage or other lien upon said land, either in whole or in part, and in event Lessee does so, it shall be subrogated to such lien with the right to enforce same and apply rentals and royalties accruing hereunder toward satisfying same. Without impairment of Lessee's rights under the warranty in event of failure of title, it is agreed that if Lessor owns an interest in said land less than the entire fee simple estate, then the royalties and rentals to be paid Lessor shall be reduced proportionately. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators, successors and assigns. This agreement shall be binding on each of the above 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. m,m....c. ATTEST: HOARD OF COUNTY COMMISSIONERS, a...vet/it., � � / iRl$ >rOurrit, COLORADO t. County C1 k� y an -Recorder (Lc. -( ��r/,,L� / and Clerk, tO Board 8-r2,14/4-- _,a_-c z1 By:: r�. /G� ,./Deputy County Clerk STATE OF COLORADO, weld } SS. Colorado Acknowledgment County of The foregoing instrument was acknowledged before me this 18th day of April , A.D., 19 73 by Glenn K. Billings, Harry S. Ashley, Roy Moser, T.he._Board...of._County Commissioners, Weld County, Colorado Witness my hand and official seal: My commission expires AlY Commission expires dune IQ_1g76 • f Notary Public. 12. Upon the termination of this lease in whole or in part by election or by failure to make payments as aforesaid, lessee or his assigns shall within 30 days release by written instrument the land or portion thereof which said lease terminates, and said notice shall also be sent to the lessor giving the book and page of said lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado now in effect restricting or limiting the powers of Counties or boards of-County Commissioners and provision herein in conflict therewith shall be inoperative and void. . _4 a Q el- /it.my hand and official seal: Recorded at '1 o4(oeyEl�'�✓_ {". MQI 2 2 1973 • My commission expires Roc. No..,...-_��+3Lv9 _ Ann Stwmer, Recorder • / Notary Public. t .a v .vc 0 0 0 N ° o " I CI 0 as V a al v i— W v jr R u `' FacG na 0 o c fly o a 4 Ill 4 Z ri rn a a O a y r Y Q N V. e•I o\Z y Cy`oQ dc U Q E" 0.'i Q 'v^V.8f�.7i Q 0 �v\ Vl 0Ur vU c � ° o _ic O {, 8 _ c VO o v .°.O „ I), ccv o c it rt„ o v 28 ❑ i 0 ,i Z v V v n .9-.v. W THOMAS G. VESSELS April 19, 1973 Mr. Samuel S. Telep County Attorney, Weld County First National Bank Building Greeley, Colorado 80631 Dear Mr. Telep: In re Oil and Gas Lease on Green Acres and Nelson Subdivisions, Section 24-1N-66W, Weld County, Colorado. Pursuant to information given us by Mr. J. H. Mills, who called on you Monday, April 16 , 1973, we submit the follow- ing oil and gas leases for consideration and approval by the Board of Commissioners for Weld County at your early convenience. Tract No. 1 - Green Acres Subdivision, NE4 of Section 24- 1N-66W, Weld County: Background: The NE4 was originally owned by Matthew Walpole (Pat) , who sold to Patrick Cronin (1917) , who deeded to wife and children (1966) , who sold to Vantage Builders, Inc. , (a Colorado corporation) , but reserved one half of the mineral in- terest. Vantage filed a subdivision plat on a portion of the NE4, approved July, 1967, by Weld County; but they dedicated "all streets and drainage ditches" (in their work) to the Public Use, and there is no recorded mineral reservation by Vantage of any minerals prior to the plat approval. Using the survey data from the plat of record on the Green Acres Subdivision, we calculate the area in which Weld County owns one half the mineral interest as follows : 2ND FLOOR • 180 COOK STREET • DENVER, COLORADO 80206 • 303-399 - 6621 Mr. Samuel S . Telep April 19, 1973 page 2 Street/Avenue Length Width Sq. Feet (feet) (feet) Arabian 1400 60 84, 000 Appaloosa 2600 60 158, 400 Palomino 1920 60 106, 200 Pinto 300 60 18, 000 Shetland (Gn Ac side) 1507 40 60, 280 Drainage ditches in Blocks 4 and 6 1500 25 37, 500 464, 380 At 43, 560 sq. £t. per acre -- 10.66 acres - Net 5. 33 Attached to this lease is our Check No. 21293 in the amount of $53. 30 in payment thereof. The lease is for a term of two years with rental payable to the County' s account in the First National Bank of Greeley at the rate of $1. 00 per year. Tract No. 2 - Nelson Subdivision, SE4 of Section 24-1N-66W, Weld County: Background: The SE4 was owned after mesne conveyances by P. Ralph Ritchey (1946) , who died and after probate approval of the heirs, they, in turn, conveyed to Carl A. and George E . Nelson (February, 1958) , but reserving one half the mineral interest. The Nelson ' s filed a subdivision plat on Nelson Sub- division, approved by Weld County in January, 1961. There is no recorded prior mineral reservation affecting the streets (no drainage ditches) by the Nelsons. We calculate the area under which Weld County owns one half the mineral interest as follows : r • s • Mr . Samuel S . Telep April 19 , 1973 page 3 Street/Avenue Length Width Sq . Feet ( feet ) ( feet ) Appaloosa 1320 60 79 , 800 Nelson 920 60 46 , 200 Shetland ( Nelson side ) 1507 40 60 , 280 185 , 680 At 43 , 560 sq . ft , per acre -- 4 . 3 acres - Net 2 . 15 Attached to this lease is our Check No . 21292 in the amount of $ 50 . 00 in payment thereof . The lease is for a term of two years with rental payable to the County ' s account in the First National Bank of Greeley at the rate of $ 1 . 00 per year . On both of the above leases , we do ask that you initial where the warranty clause has been deleted . It will be appreciated if , after the enclosed leases are approved by the Board , you will transmit the original copy of each lease to this office , together with an official nota- tion as to the Item of business in the County Commissioners ' records which refers to the approval of these leases . Your co-operation and assistance is appreciated . Sincerely , THOMAS G . VESSELS ` , "By : ' 'LC Victor M . Grant VMG : BW Enclosures Hello