HomeMy WebLinkAbout740001 Producers 88 (272):, es—Colorado
OIL GAS AND MINERAL LEASE
THIS AGREEMENT made this 5th. _. day of loll August 19 7.4 between
Weld County, a-.¢oiitical subdivision of The State of Colorado, by the Board of County
Commissioners, for its respective interest, c/a Board. of County Commissioners, Weld-County
Court_House,_.Greeley, Colorado 80631
Lessor "whether one or snore), and Amoco_Production Company, Security Life.Building, Denver,- Colorado-80202
Lessee, WITNESSETH:
1. Lessor in consideration of.:Ten and..more _ to 11 _.. oleo loll_.. 'Dollars
t$ 10.00.. ..more ). in hand paid, of the royalties herein prove oed, ond of [he agreement of Lessee herein contained, hereby grants, leases and lets
exclusively unto Lessee for the purpose of investigating, exploring prospecting, drilling and mining for and producing oil, gas, other hydrocarbons and,
without restriction to such enumerated minerals, all other minerals whether similar or dissimilar to those particularly specified herein, laying pipe lines,
building tanks, power stations, telephone lines and other structures thereon to produce, save, take rare of. treat, transport and own said products, and
housing its employees, the ;allowing described land in _ _. ._Weld County, Colorado. to-wit:
Township 2 North, Range 65 West
Section 17: NW/4
Section 18: That part of SE/4 SE/4 described as: Beginning at SE corner; Thence North 50
rods; Thence West 36 rods; Thence South 50 rods; Thence East 36 rods to the
point of beginning.
Section 34: That certain 200 foot strip across the SE/4, comprising 10.16 acres, as recorded
in Deed Book 1254, Page 419.
of Section loll...loll loll loll loll Township loll. loll , Range....... loll..
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 otter minerals underlying lakes, rivers, streams, toad's, easements and rights-of-way which traverse or
adjoin any of said lands. For rental payment purposes, the land included within this tease shalt be deemed to contain 8i.56. acres,
1 whether it actually comprises more or less. 1 rr�I
2. Subject to Inc other provisions herein contained, this lease shall he fora !Ain't �� € m(chprittir>arp ytteMY'r"5nd as long
thereafter as oil, gas, other hydrocarbons, or other mineral is produced from said land hereun er, or n mg or reworking operations are conducted
thereon.
3. The royalties to be paid by Lessee are: fa) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the
wells, or In 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; Kb) 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 sited. provided that on gas sold at the wells the royalty shall be one-eighth of the amount
realized from such sale: lc) on all other minerals mined and marketed. one-tenth either in kind or value at the well or "nine, at Lessee's election, except
that on sulfur the royalty shall be fifty cents (50c) per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except
wafer 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 µhodueng gas to 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 suni of $100.00 per well, and, if such payment or
tender is made, this lease shall continue in effect for a fusilier 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 open Ion for drilling are not com fenced said 'land as hereinafter provided, on n before one year Mori d'aQ Lhel9 5 shall then
terminate as to both parties, unless on or before such anniversary date Lessee shall pay or tender to Lessor or tp the cr2di Z dr t(5.The. Board
of� county Commigsioner�e ,fit CIreelav, Colorado $06)31 hie Ib'nc and its successors are Lessors agent
s a 1 con sue s e epository or a ren a s pays hereun er regard ess o cnanges in ownership of said) jd or the rentals either by conveyance
o: by the death or incapacity of Lessor) the sum of One Hundred-Eighty One and 56/100--------•------W-----Dollars
15. . 187 I 56. ). therein called rental). which hr cover the privilege of deferring comntencemunt of operations for drilling for a period of
twelve t z) months- Its 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 mitre's) tei The payment or tender of rental herein referred to may be made in currency,
draft or check at the option of the Lessee; and the depositing of such rummy draft or check in any post office,properly addressed to the Lessor.or said
bank, on or before the rental paying date, shall he deemed payment anerein proviided. If such bank for any successor bank) should fail. liquidate or be
sin:needed by another hank, or for any reason fail or refuse to .incept renlii Lessee shall not be held in default for failure to make such payment or tender
of rental until thirty 130) days after Lessor shall deliver to Lessee a proper '> J lle instrument, naming another bank as agent to receive such pay-
ments or ienders. The down cash payment is consideration for this lease according to its terns and shall not be allocated as mere rental for a period.
Lessee _n.,y at a s line execute and deliver to Lessor or to the depository above naiad or place of record a release or releases covering any portion or
portions s of the above described premises and thereby surrender ih.a, lease as tc such portion or portions and be relieved of sill obligations as to the
acreage surrendered nerd thereafter the rentals p-ycble hereunder shall be reduced in the proportion that the creage covered hereby is itsduced by said
release or releases.
If Lessee shall, or, or before any rental date, make a bona fide attempt to pay or deposit rental to a Lessor entitled thereto under this tease
'a'cs d e l0 Lessee's see s e e d• or k. a Lessor who prior to such attempted payment deposit, has given Lessee notice, n accordance with the terms of
this lease hereinafter set forth. of ins right to receive rents i, and if such payment or deposit sits Il 0e s n my regard I whether deposited t 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 uncond it iohally obligated to pay to such Lessor the ren_:,] pro).cr.Y payable for the rental period invlved, but this lease shall be maintained in
the same ananner as if such erroneous rental ow'ment or deposit h.,d been properly made, provided that the erroneous rental payment or deposit be cor-
rected w 'hin 30 days after receipt by Lessee of written notice from suck Lessor of such error accompanied by any documents and other evidence neces-
sary lo enable Lessee to snake proper payment
Should any well drilled on the above fese,ibed land dining the 1rtmary -term before production is obtained he a dry hole, or should production
be obtained during the primary team and thereafter cease, then and in cattle, event, if operations for drilling ,an additional well are rot commenced or
onewinons' for i' f an old well are not pursuedait s 1 land of u to 'u the first rental paying date _t ley the the
cessation o of production
:ton
d ll nc or velour x the on paymentsaid sell eorn wets then 4 g le ni ig II n met t oft ae e s t o bnuer sfor d'ju hst l ough t the pays Went nt rentals.
rip ti e tmhe or st mts. of urinals rst 4 governing the payment of and
sal 'hurl i continue in force just as though there had been no inter-
ruption m the rental payments. or the last year of the primary term noel prior ar the discovery of oil, gas of nth r hydrocerprms on ter (the
rodu should drip a stay hole thereon, torh if stt stover; tof ml, ow m other hydrocarbons before or during the last year r the primary term the
production there'd. have -lase during f the last year nfc a term bow m c.eve. e rental pay i. : - e operations necessary in or d to g keep the
were ' force during the w alb,r f's the primary term If at the esl t ce s, the primary v term Lessee conducting operations u d itl g new
well at rewm of the.. r n aid well p e leasei never athis ess she continue in fleas as ever nasevertheless
such drilling in reworkingforce al drilling
rili gr e or IY after the
arei rot onof the i primary term. p odic toe n this lease shall cease, io lease f uctioneis restored sho continue in force if tr 111 fi over k a g peso t of
are somnnced within sort} t(o days after such cesswitbc t ps,'town"; if pe l hat's si ty a or his lease hall conon e discoveredthereafter
as a reS o[
gay suhe drydng io sew a, king r mi (erns co roduted and ;assn ion ch more Iran sixty ew kindayg tpe Lion shell adnwithe it el sg onofsi as oil,
gas, other hydro c .ms on other ore a is produced(60) and as long a addil'v¢nal drilling or reworking operations are had without cessation of such drill-
ing r reworking onerafiuna for more than sixty f1i0) consecutive Uays.
1. Lessee at its oouoo is hereby given the right and power to pool or mrnb'me the land covered by this le,se, or any potion thereof. as to oil
and gas. or either of them. withany other land, lease or leases when in L e 'e judgment it is necessary or advisable to do so in order to properly
develop and operate said premises such pooling to he into a well unit or units not exceeding forty 1101 acres, plus an acreage tolerance of ten per cent
of forty 145. wires, for oil, and not exceeding six hundred and forty ,640) acres. plus an acreage tolerance of ten per cent 110';) of six hundred
and forty file a except that larger units mr y be 1 coiform to any spacing or well unit pattern that may be prescribed by govern-
mental authorities having jurisdi ra _Lessee may pool or e r uti ne aererige covered by this leas.., r any portion ,hereof, as above provided as to nit or gas
in any e or more.,oats end units so formed need not conform n .slat' or area with the unit or units into which the lease is pooled or ombined as to
any other stratum re :'rata, and oil units reed not confo n s to sac a with gas units. The pooling in one or more instances shall not exhaust the rights
of the Lessee hercumlea _ pool th s cease or portions thereof Into list" 1 user shall execute in writing and place of recordecord an instrument or mitru-
merits idcntifyint'' and de__nil:Cop.the pooled d rreage. The 'mull" .acreage ro po=led 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 shot-in gas well, shall be considered for all purposes, except the payment of royalties, as if such operations were on or such production
were front 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 el,ewhere herein specified. Lesser shall reserve from a unit so formed, only' such portion of the royalty stlptilat_I herein as the
amount al his ace bge ill=sued in the unit or his royalty Interc,(totem hear.: so ttm total acreage so pooled in the particular emit involved- Should any unit
r gsn '.ly created he bu,r der contain less than the maxineim numberof e-elsabove specified,then Lessee mayat any time thereafter,whether be-
fore or niter production obtained cm the land. enlarge 'wch unit by addoig additional acreage thereto, but the enlarged unit shall is no event exceed
the acreige content bereinabove specified. In the event an existing unit is so enlarged, Lessee shall execute and place of record a supplemental declara-
tion of unitization Identlfying and describing the :and added to the existing tints; provided, that if such supplemental declaration of unitization is not
filed until after production is obtained on the unit as originally created, then ;rod in such event the supplemental declaration of unitization shall not
become effective until the first day of the calendar month neat following the tiling thereof, In the absence of production Lessee may e:Inmate any
unitized area by filing of record notice of termination.
7_Lessee also shall have the right in unitize. pool combine all m any part of the above described lands with other lands a h the same general
area by entering into ioperative or unit plats of development t pe bon approved by any governmental authority and, from .e t time, with
like approval, to modify. change or terminate any such plan o agreement and Ir such event she terms tonditinns, and provisions of this lease shall he
deemed modified to conform to the terms ditions and p lienr n es of ',len approved ipproved coopernrve or unit plan of development or operation and, par-
ticularly all drilling and development requirements of the, 'ewe. espresa r i hplled, shall be satisfied by compliance o ane with the dl aing and development
requirements of such plan:or agreement, and this lease sib I not ter ate exiere during the -ifs' of such plan of agreement In the (Went that said
above described lands or any part th =h ereof. all heteafter he nper.ated s il,r any such cooper,rive or mil plan of development or mation whereby
the production the of ern is allocated to different portions of the lied covraoal bie er id plan. the, the production allocated to any particular treat of land
shall for the purpose of :onputing the royalties to he paid he r a.udea f l vs-or. be regarded es hzv,ne been prndueed from the p'r',icss le b-act of Wnd
in winch it is allocated and not to anyother tract of land, (mai the royalay royal niyrients lo be insidehereunder to Lessor shall he based Upon production
only as so allocated Lessor shall formally express Lessor's cement o a f rod t .plan of development or opinn adopted b' Lessee and
approved by any g v -r m utsl agency by executing;. , r the epc�r ego era of Lessee
8. Lessee shall h.ve the right at any hoe without I min: constad t -wade- al of any poinon of the leased premises and be relieved of
all obligation as to the icreage surrendered Lessee shall hove 1 1), n gl tone during co atter he expiration tins leise to remove all property
and fixtures placed by Lessee so id o d land including the rig: In drew and a r casm When required by Lessor Lessee will bury all pipe
hoes below o d'na y 11 depth. and no well snail he didlad wither two hood's' d fuel of any reandenue or bornnow r said land without
Lessors consent. 'The Lessee -,creea to promptly Pay to the w f 'Laded ans c u e o a n1 n annmo‘eelents noised let er 'Cog trop. any
(wordIons of Lessee ,�,^��/3
740001 / F(0C3
9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and
assigns of the parties hereto, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the
obligations or diminish the rights of Lessee. No change in the ownership of the land, or any interest.therein, shall be binding on Lessee until Lessee shall
be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale
of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among
the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obligations with respect to the assigned por-
tion or portions arising subsequent to the date of assignment.
10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this
lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if
such failure is the result of, any such Law, Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability to
obtain material, failure of transportation, or other cause beyond the control of Lessee.
If. during the term of this lease,oil or gas or other hydrocarbons or other mineral is discovered upon the leased premises, but Lessee is prevented
from producing the same by reason of any of the causes set out in this Section, this lease shall nevertheless be considered as producing and shall continue
in full force and effect until Lessee is permitted to produce the oil, gas, other hydrocarbons, or other mineral and as long thereafter as such production
continues in paying quantities or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor -agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon saibi 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. (SEE RELEASE RIDER ATTACHED.)
ttlatxxxx ATTEST: WELD rnUNTY, a political-subdision of The State
/� of- Co#erato( iy th rd County Commissioners
.. , ff �( t4 . Li
By = r By �� C 1_5 . .1. . •
Clerk a�d R{corder _ r r/ , >
'County By
-"''' ,.% ....s tr„mot, . 1• i I)MA By t -`!- - C' ,✓ --C 't- "
= 1 A _
l t Il`ul
STATE OF COLORADO,
} SS. Colorado Acknowledgment
County of Weld 1
The foregoing instrument was acknowledged before me this 28-th day of
August , AD„ 19 74 by
Harry S. Ashley, Glenn K. Billings & Roy Moser
Witness my hand and official seal:
My commission expires M ilCommission expires Jan.-26,.-1976
2/CC '-:. :- -4/Notary Public.
STATE OF COLORADO. 1 ^�,. b.`... . I,..L.. ._.:
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.
•
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