HomeMy WebLinkAbout760008.tiff RESOLUTION
RE: AUTHORIZING OIL AND GAS LEASE COVERING THE NORTH HALF OF
THE NORTH HALF OF SECTION 5, TOWNSHIP 3 NORTH, RANGE 61
WEST OF THE 6TH P.M. IN WELD COUNTY, COLORADO.
WHEREAS, the County of Weld and State of Colorado, as the
owner of various severed mineral interests in land in Weld
County, Colorado, and
WHEREAS, a portion of said mineral acres presently are
not leased, and
WHEREAS, E. B. O'Hara of 555 17th Street, Denver,
Colorado 80202 ,has offered to lease certain mineral lands
purportedly owned by Weld County, Colorado, containing 160. 20
acres, more or less, and to pay therefor, One Thousand Six
Hundred and Two Dollars and no/100 ($1, 602 . 00) for the execution
of the necessary lease with annual delay rental of One Dollars
($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
E. B. O'Hara be accepted for the following described mineral
acreage:
Township 3 North, Range 61 West
Section 5: N1/2N2 (ada Lots 1, 2
3 and 4)
The above and foregoing Resolution was , on motion duly
made and seconded, adopted by the following vote on the 29th
day of December, A.D. , 1976.
n/� �� BOARD OF COUNTY COMMISSIONERS
ATTEST: {itr` ?C4��tTil,CnJ WELD OUNTY, COLOO
Weld County cLerk and Recorder RAD
and Clerk to the Board Pg-1-f-"I'L /•�-rlar
Deputy County Clerk 7
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Vet No. -. .'�t�8284 Mary Ann ierst in, Recorder
NO.950C.—Bradford Publishing Co..1824-44 Stout Street,Denver.Colorado-9-74 (-I_I
FORM OS UNIT—WYO..COLO.
OIL AND GAS LEASE
AGREEMENT, Made and entered into this 29th day of January , 19 77 by and between
WELD COUNTY BOARD OF COUNTY COMMISSIONERS, Greeley, Colorado 80631
-__ ,party of the first part, hereinafter called lessor (whether one or more)
and E. B. O'HARA, 812 Patterson Bldg., Denver, Colorado 80202 party of the second part, lessee.
WITNESSETH: That the lessor for and in consideration of ._Ten_and..moxe Dollars,
in hand paid, receipt of which I. hereby acknowledged, of the royalties herein provided, and of the agreements 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, casinghead gas, and all
other minerals, 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,
State of Colorado to-wit:
Township 3 North, Range 61 West
Section 5: Weil, fads Lots i, 2, 3 and 4)
Containing 16D.20 fives_ 5) acres,more or less.
TO HAVE AND asTO HOLD the same ad(subject the other of the herein contained)therefrom;
for a term sfuc years from this e date r (calledth term")
and as c long oil or gas or rand shout gas or either or any of them, produced or as much longer and as thelesseeas in goodsfaith
shall drilling conduct h operations the
reon and should production result from such operations, this lease shall remain in full force and effect as long oil or gas or
caeingIn d gas, raall be produceda ises it om.
In consideration of the premises it is hereby mutually agreed as follows:
1. The lessee shall deliver to the credit of the lessor as royalty, free of cost, in the pipe line to which lessee may connect its wells, the equal one-eighth
price for oil of like grade and
part of all
oil produced
and from the leased premises, or at the lessee's option, may pay to the lessor for such one-eighth (1) royalty the market
gravity prevailing in the field where produced on the day such oil is run into the pipe line,or into storage tanks.
2. The lessee shall pay lessor, as royalty, one-eighth (%) of the proceeds from the sale of the gas, as such, for gas from wells where gas only is found.
and where not used or sold shall pay Fifty ($50.00) Dollars per annum as royalty from each such well, and while such royalty is so paid such well shall be held
to be a producing well. The lessor to have gas free of charge from any gas well on the leased premises for stoves and inside lights in the principal dwelling
house on said land by making his own connections with the well, the use of said gas to be at the lessor's sole risk and expense.
3. To pay lessor for gas produced from any oil well and used off the premises or in the manufacturing of gasoline or any other product a royalty of
one-eighth (14) of the market value, at the mouth of the well, payable monthly at the prevailing market price.
4. If operations for the drilling of a well for oil or gas are not commenced on said land on or before one year from this date, this lease shall
terminate as to both parties, unless the lessee shall, on or before one year from this date, pay or tender to the lessor or for the lessor's credits's to
-_B52ard_Q. _Co.unty-_.Conmissioaenfl Beak at GreeJ.oYs.__Sc4i2ri452_$Q634- _________
or its successor or successors, which bank and its successors are lessor's agents and which shall continue as the depository regardless of changes In the ownership
of the land, the sum of One Hundred Sixty & 20/100 _Dollars
which shall operate as a rental and cover the privilege of deferring the commencement of operations for the drilling of a well one year from said date. In like
manner and upon like payments or tenders the commencement of operations for the drilling of a well may be further deferred for like periods successively
during the primary term of this lease. And it is understood and agreed that the consideration first recited herein, the down payment, covers not only the
privileges granted to the date when said rental is payable as aforesaid, but also the lessee's option of extending that period as aforesaid.and any and all other
rights conferred.All payments or tenders may be made by check or draft of lessee or any assignee thereof,mailed or delivered on or before the rental baying date.
Lessee may at any time execute and deliver to lessor 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 herein is reduced by said release or releases.Notwithstanding the death of the lessor, or his
successor in interest, the payment or tender of rentals in the manner provided above shall be binding on the heirs, devisees,executors and administrators of such
persons.
5. If at any time prior to the discovery of oil or gas on this land and during the term of this lease, the lessee shall drill a dry hole, or holes. on this land,
this lease shall not terminate,provided operations for the drilling of a well shall be commenced by the next ensuing paying date, or provided the lessee begins or
resumes the payment of rentals in the manner and amount above herein provided: and in this event the preceding paragraphs hereof governing the payNIMISt of
rentals and the manner and effect thereof shall continue in force.
e. If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties sad rentals
herein provided for shall be paid the lessor only in the proportion which his interest bean to the whole and undivided fee.
' .' see reverse sr'Ce r _
...
8. If the lessee shall commence to drill a well within the term of this lease or any extension thereof,the lessee shall have the right to drill ouch well to
completion with reasonable diligence and dispatch, and if oil or gas or either of them, be found in paying quantities, this lease shall continue and be in force
with the like effect as if such well had been completed within the terms of years herein first mentioned.
9. If the estate of either party hereto is assigned (and the privilege of assigning in whole or in part is expressly allowed), the covenants hereof shall
extend to their heirs, executors. administrators, successors and assigns, but no change of ownership in the land or in the rentals or royalties shall be binding on
the lessee until after notice to the lessee and it has been furnished with the written transfer or assignment or a certified copy thereof. and in case lessee assigns
this lease,in whole or in part,lessee shall be relieved of all obligations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. If the lease premises shall hereafter he owned in severalty, or in separate tracts, the premises, nevertheless, shall be developed and operated as one
lease and all royalties accruing hereunder shall be treated ea an entirety and shall be divided among and paid to such separate owners in the proportion that the
acreage owned by each such separate owner bears to the entire leased acreage. There shall be no obligation on the part of the lessee to offset wells en separate
tracts into which the land covered by this lease may be hereafter divided by sale, devise or otherwise, or to furnish separate measuring or receiving tanks. It is
hereby agreed that,in the event this lease shall be assigned as to a part or as to parts of the above described lands,and the holder or owner of any such Dart or
parts shall fail or make default in the payment of the proportionate part of the rent due from him or than,on an acreage basis,such default shall not operate to
defeat or affect this lease in so far as it covers a part or parte of said lands upon which the said leases or any assigns hereof shall make due payment of said rentals.
11. If at any time there be as many as six parties (or more) entitled to receive royalties under this lease, lessee may withhold payment thereof unlees and
until all parties designated in writing in a recordable instrument to be filed with the lessee a Trustee to receive all royalty payments due hereunder and to execute
division and transfer orders on behalf of said parties and their respective successors in title.
12. Lessee 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, enditions, 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, particularly, 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 ay 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 ➢articular 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.
13. In the interest of conservation,the protection of reservoir pressures and the recovery of the greatest ultimate yield of oil,gas and other minerals.lessee
shall have the right to combine the leased➢remises with other premises in the same general area for the purpose of operating and maintaining repressuring and
recycling facilities, and for such purpose may locate such facilities, including input wells, upon the leased premises, and no royalties shall be payable hereunder
upon any gas used for repressuring and recycling operations benefiting the leased premises.
14. Lessor hereby warrants and agrees to defend the title to the land herein described and agrees that the lessee, at its option, may pay and discharge
any taxes,mortgage,or other liens existing,levied,or assessed on or against the above described lands and,in event it exercises such option,it shall be subrogated
to the rights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other lien, any royalty or
rentals accruing hereunder. above lessor
15. All rental payments which may fall due under this lease may be made to
one of the above named lessors, in the manner herein stated.
16. If within the primary term of this lease production on the leased premises shall cease from any cause, this lease shall not terminate provided
operations for the drilling of a well shall be commenced before or on the next ensuing rental paying date:or,provided lessee begins or resumes the payment
of rentals in the manner and amount hereinbefore provided. If, after the expiration of the primary term of this lease,production on the leased premises shall cease
from any cause, this leas shall not terminate provided lessee resumes operations for drilling a well within sixty (60) days from such cessation, and this lease
shall remain in force during the prosecution of such operations and, if production results therefrom, then as long as production continues.
17. It is agreed that this lease shall never be forfeited or cancelled for failure to perform in whole or in part any of its implied covenants, conditions,
or stipulations until it shall have first been finally judicially determined that such failure exists, and after such final determination,lessee Is given a reasonable
time therefrom to comply with any such covenants, conditions, or stipulations.
18. All exprssd end implied covenants of this lease shall be subject to all federal and state laws, executive orders, rules and regulations, and this lease
shall not be terminated, in whole or in part, nor lessee held liable in damage 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 ouch compliance is prevented by or failure is the result of inability of lessee through no fault of
its own,to obtain sufficient and satisfactory material and equipment to justify the commencement of drilling operations or to continue production of oil or gas
from the leased premises.
19. This lease and all its term, conditions, and stipulations shall extend to and be binding on all successors of said lessor or lames.
20. With respect to and for the purpose of this lease lessor,and each of them if there be more than one, hereby :eleaas and waive the right of homestead.
WHEREOF witness our bands as of the day and year first above written.
ATPEST: Weld County, Colorado, A Political
AtntE1RRrbl CLERK TO THE BOARD Subdivision of the State of Colorado,
By The Board of Coun s nets
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ice r r� /l � ._ �* ��y, )27,‘,41 r neAcert t/
r is 96 1768284
ACKNOWLEDGMENT
STATE OF Colorado 1 A
County of
Weld }sa'
On this 29.th day of Dec.emhex 1 j&., before me personally appeared..Glenn_.K_....hillings
Roy Moser.,.—Vic.tar._Sacnhucci,..NnrmaA...Cr1T'.LSD.A,_..7Uz1e toe11 mecanEwn to be the person...s...described in and who executed
the foregoing instrument and acknowledged that they executed e same as a---.......free act and deed.
Given under my hand�d seal this �"''' -e day of YX-4:z 'GC.: 19....x.7
My Commission Expires 4-e—le.. .- .,2'.,.....Z..7 2 // - k../
Notary Public.
ACKNOWLEDGMENT—MAN AND WIFE
STATE OF
ss.
County of
On this day of , 19 , before me personally appeared
to me known to be the person........described in and who executed
the foregoing instrument and acknowledged that executed the same as free act and deed, including the release
and waiver of the right of homestead; the said wife having been by me fully apprised of her right and the effect of signing and
acknowledging the said instrument.
7. Lessee shall have the right to use, free of cost, gas, oil and water produced
on said premises, without the written consent of the lessor. When requested by
lessor, lessee shall bury his pipe lines below plow depth.
No well shall be drilled nearer than 200 feet to any house or barn on the premises
without the written consent of the lessor, whether said house or barn is on the
premises at the time of the execution of this lease or is placed on said premises
after the execution of this lease.
Lessee shall pay for damages caused by its operations to growing crops on said
land and shall also pay for the restoration of said land at the conclusion of
any oil drilling or extraction operations by the lessee herein.
Lessee shall have the right at any tine to rennve all improvements, machinery,
and fixtures placed or erected by lessee on said prendese, including the right
to pull and remove casing.
Known to me to be the person whose name subscribed to the within instrument, and acknowledged to me that
executed the same.
Witness my hand and official seal.
My Commission Expires Notary Public within and for the State of
Residing at
Upon the termination of this lease in whole or in party by election or by failu.e 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,
said lease.
said notice shall also be sent to the lessor giving the book and page
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.
........00 ...y Haim WHl unlclal seat.
My Commission Expires
Notary Public.
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KNOW ALL MEN BY THESE PRESENTS:
The undersigned, E. B. O'HARA, hereinafter called "Assignor",
for and in consideration of the sum of Ten Dollars ($10.00) and other good
and valuable considerations to him in hand paid by HOBE, INC. OF WYOMING,
a Wyoming corporation qualified to do business in the State of Colorado
under such name, whose address is 2904 Lincoln Center Building, 1660
Lincoln Street, Denver, Colorado 80264, hereinafter called "Assignee",
has sold, assigned and conveyed and by these presents does hereby sell,
assign and convey unto the said Assignee, its successors and assigns,
an overriding royalty interest in the amount of 9.50% of 8/8ths in and
to the oil, gas and other minerals which may be produced and saved from
the lands described in Exhibit A under the terms and provisions of the
oil and gas leases described in Exhibit A, situate in Weld County, Colorado.
Said overriding royalty interest shall be subject to proportionate reduc-
tion to the extent that the interest covered by each particular lease bears
to the full and unvidided mineral fee estate under the lands covered by
said lease and shall further be subject to proportionate reduction to the
extent that the interest of the Assignor in any particular lease bears to
the full working interest in such lease. Any overriding royalty interest
conveyed herein shall apply to any extensions or renewals of the oil and
gas leases described in Exhibit A or any new leases taken in lieu thereof.
TO HAVE AND TO HOLD the same unto the said Assignee, its suc-
cessors and assigns forever.
This assignment is made without warranty of title, either express
or implied.
IN WITNESS WHEREOF, this assignment is executed this 1st day of
May, 1979.
E. B. O'Hara
STATE OF COLOaADO )
CITY AND ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this 1st day
of May, 1979 by E. B. O'Hara.
7.---Notary Pubtic
My Commission Expires: L
May 14, 1982
EXHIBIT A
Lessor: Weld County Board of County Commissioners
Lessee: E. B. O'Hara
Date: Janaury 29, 1977
Expiration Date: January 29, 1982
Recorded: January 7, 1977 under Reception No. 1708284
Lands Covered: Township 3 North, Range 61 West, 6th P.M.
Section 5: N'Ni (a/d/a Lots 1, 2, 3 and 4)
Cross Acres: 160.20
Net Acres: 160.20
Royalty: 1/8th
E. E. O'HARA
OIL AND GAS PROPERTIES
BEE-ITTH STREET
DENVER, COLORADO 80202
HOME PRONE: 23%-29S> OFFICE PHONE, 303-893.1213
October 29, 1976
Mr. Thomas 0. David
Weld County Attorney
915 - 10th Street
Greeley, Colorado 80631
Re: N1N0 Section 5, T 3 N, R 61 W
Weld County, Colorado
Dear Mr. David:
Pursuant to the request contained in your letter of October 15,
1976, enclosed please find my check in the amount of $1,602.00 represent-
ing consideration of $10.00 per acre for the enclosed oil and gas lease.
I believe the lease as submitted in correct in that the rental figure
of $1.00 per acre is correct and the lease date coincides with the ex-
piration date of the present lease.
If you have any questions, please do not hesitate to call.
Very truly your,,
E. B. O'Hara
EBO:js
Enclosures
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