HomeMy WebLinkAbout790004.tiff �15
C, AUG 91979
K Recorded at o'clock ....f M
500
8'?8 Rec. No. 1'7`''9.544 M.2+y l -cie Lte..07iGs+i
State of Colorado, Weld County Clerk & Recorder U�
C)�
RESOLUTION
C% RE: APPROVAL OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
o` PURPORTEDLY OWNED BY WELD COUNTY, COLORADO LOCATED IN
PART OF SECTION 2 , TOWNSHIP 1 NORTH, RANGE 65 WEST OF
THE 6TH P.M. , WELD COUNTY, COLORADO.
Q
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
O.
affairs of Weld County, Colorado, and
O.
WHEREAS, Weld County, Colorado is the owner of vast acres
of mineral lands located in Weld County, Colorado, and
WHEREAS, a portion of said mineral acres presently is not
leased, and
WHEREAS, Double Eagle Petroleum and Mining Company, Box 766 ,
Casper, Wyoming 82602, has offered to lease the following
described mineral lands, to-wit:
Northwest Quarter of Section 2 , Township 1
North, Range 65 West of the 6th P.M. , Weld
County, Colorado
WHEREAS, said described mineral lands contain 155 land
acres, which contain 155 mineral acres, more or less , for the
total sum of EIGHT THOUSAND EIGHTY SIX AND 35/100 DOLLARS
($8,086. 35) together with ONE DOLLAR ($1.00) per acre per year
after the first year, which lease is to run for a period of
five (5) years , commencing August 1 , 1979 and ending July 31,
1984 , and
WHEREAS, Weld County is desirous of accepting said offer
to lease the abovedescribed mineral acres .
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the offer of Double
Eagle Petroleum and Mining Company, Box 766 , Casper, Wyoming
82602, as hereinabove recited, be, and hereby is, accepted for
a period of five (5) years .
790004
°� 1799544
v° 02-02
sI8
•
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 1st day of
August, A.D. , 1979 .
BOARD OF COUNTY COMMISSIONERS
VELD, COLORADO
(Aye)
Norman Carlson, Chairman
Absent Date Presented (Aye)
Lydia Dunbar
C4^ iii Xi.,<-4 (Aye)
C. W. Kirby
,00 k_ S?- / -E (Aye)
Leonard L. Roe
(ABSENT)
lit •y , June K. Steinmark
'<r
ATTE� 1'a.
�!` 141 Ct�uhty t rk and twirl
�Elerla ,,to e Board
Bye .
/ De "uty County Clerk
''\ APP O D AS TO FORM:
County Attorney
DATE PRESENTED: AUGUST 8 , 1979
WELD COUNIY, COLORADO OIL AND CAS LEASE
THIS AGREEMENT made this 1 s t day ofAugust t , lg7`:) between Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis-
sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado P0631, Lessor (whether one or more), end
Double Eagle Petroleum and Mining Company, Box 766,Lessee, WITNESSETH:
Casper, lessor 1. WY i6�2consideratton of EIGHT THOUSAND EIGHTY-SIX and 35/100 Dollars ($ 8,086.35*`>Y,
In hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and
producing oil, gas and other hydrocarbons, 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,
(subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights
therein being situated in the County of Weld, State of Colorado, and described as follows:
•
RANGE 65 , TOWNSHIP 1 NORTH, SECTION 2 NWa
and containing 1,55 acres, more or less ( 1 5 5 net mineral acres).
2. Subject to the other provisions herein contained, this lease shall be for a term of 5 years from this date
(called "primary term") and as long thereafter as oil, gas nr other hydrocarbons, is produced from said land hereunder,
or drilling nr 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 he 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 sub-
stance, 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; on sulfur the royalty shall be fifty
cents (SO4) 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 shall then terminate as to both parties. unless on or before such anniversary date Lessee shall
nay or lender to Lessor, and shall continue as the depository 'or all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by convevance or by the death or incapacity of Lessor, the sum of
c15 r, 0p Dollar(s) (t j no) per net mineral acre, (herein called rental), which shall
cover the privilege o7 'defe"rring 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 made in currency, or check at the option of the Lessee; and the depositing of such currency, or
check in any post office, properly addressed to the Lessor, on, or before the rental paying date, shall be deemed pay-
ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not
he allocated as mere rental for a period. 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 hereby is reduced by said
release or releases.
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 pur-
sued 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 re-
sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals,
shall continue in force ,lust as though there had been no interruption 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 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 pro-
duction 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 drilling 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 in 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 (10X) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(lot) 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 governmental authorities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, as above provided, as to nil 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 nil units need not conform as to area with gas units. The pooling in
PURPORTED COPY,
8785
s.t - AUG 7�y/
o'clock
Recorded at n AUG
Rec. No. 1'7
3-I u89545 OY'�t,,,,Q,,,,,. �.
State of xrodo, Weld County Clerk G Recorder
•
- eo°8'78 • 1799545
•
.3-O2
one or more instance_; shall not exhaust the rights r , wt. I • ton i•. , • to pool this lease er portions thereof into
other units. Lessee shall execute ie writing and pia' ,• ' it of I ;I." t, nr nstrrnents identifying and describ-
ing the pooled acreage the entire atreag„ so pool( ' • - 'r :aa' I he tir'ated fur all purposes, except the payment
of royalties, a4 if it were ins hided in this Ir.Ist', an d, -Inn,., n, , rn; tog operations thereon or production of oil
or gas therefrom, or the r,ornplet.ion thereon of a well r Hier le y, wolf , shall be considered for all purposes,
except the payment of royalties, as if such operation were on er n. ,duction were from or such completion were
On the land covered by this lease, whether or not the v, ll nr walls h heated yo the premises covered by this lease.
In lien of the' royalties elsewhere herein specified. Ley u, .!, ,:I „_' ''ivi, from a unit So formed, only such portion of
the royalty stipulated herein as the a;„o.mt of his acreage iii' rd in 'hr unit r,r his royalty interest therein bears
to the total acreage sn pooled in the p?rt.i,.ular unit involved. Shou',i any unit as originally created hereunder con-
tain less than the maximum number of acre; nterinahove specified, then , '' 'c' may at any time thereafter, whether
before or after production is obtained en the unit , enlarge s.u^h unit by adding ,additional acreage thereto, but the
enlarged unit shall in no event exceed the acreage rnptrnf her'inabfr.e specified. lei the event an existing unit is
so enlarged, Lessee shall execute and place of record a .hnplenontal declaration of unitization identifying and
describing the land added to the existing unit; proi+c,xd, ,hat i' such supplemental diclarot inn of unitization is not
filed until after production is obtained on the unit sally created, then and in such event the supplemental
declaration of unitization shall not become effectisc ,,n, ; ' the first day of the calendar month next following the
filing thereof. In the absence of production Lessee may tin m,!- ate any unitized area by filing of record no ce of
termination.
7. Lessee also shall have the right to unitize, por.i , or rrr,hhice all or any part of the above described lands
with other lands in the same general area by entering into ., coo/oral-lye or unit plan of development or operation
approved by any governmental authority and, from time :n ' im-, wall; like approval , to modify, change or terminate
any such plan or agreement and, in such event, the term;. rr,,,,li; I005, and provisions of this lease shall be deemed
modified to conform to the terms, cnndit ions,,ard pr-virions of such approved cooperative or unit plan of development
or operation and, particularly, all drilling and develolment requirements of this lease, express or implied, shall
he satisfied by compliance with the drilling and developmr'rt requirements of such plan or agreeryent, and this lease
shall not terminate or expire during the life of such plan ur .-..p'ecmcnt. In the event that said above described
lands or any part thereof, shall hereafter be operated minor 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, he regarded as having been orodirzat from the particular tract of land In which it is al-
located and not to any other tract of land and the royalty p,,yineots to he mode hereunder to Lessor shall be based
upon production only as so allocated. Lessor shall focally express lessor's consent to any cooperative or unit.
plan of development or operation adopted by Lessee and ,gq.rov^d by any governmental agency by executing the same
upon request of Lessee.
li. lessee ;hal ! have the right at any time wilhc,,t lessor': r;rnsent to so,render all re any portion of the
leased premise; and be reliever) of all Ohliqutiun as to the a, n'ap, Serrendered le;sce shall have the right at
any time during or after the expiration of this lease Ir, rernve All property and fixtures placed by Lessee on said
land, including the right to draw and remove all casing. 'dorm required by Lessor, Lessee will bury all pipe lines
below ordinary plow depth, and no well shall be drip e-r 'r,'tHi,, two hundred (2nn) feet of any residence or barn now
On raid land without Lessor's consent. Jhe Lessee agree, ; -.•ortot ly pay to the owner thereof any damages to crops,
or improvements, caused by or resulting from any oper,,.-ii.r. - Lessee. All disturbed portions of surface land are
to he returned to original condition within time designota ' by Lessor.
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, butno such assignment shall be effective or
binding until written notice of the assignment is suba.rtled I-y 'uo as;ir.ning party to the other party. Open the
receipt of such notice by lessor'. Lessen shall he relieved r° all obligations with respect to the as':i-prod portion
or portions arising subsequent to the date of assignment. ."In change in the ownership of land or any interest
therein, shall he binding on Lessee until Lessee shall he famished with evidence of any transfer, inheritance or
sale of said rights. In tho .event of the .r,sirrnment of the, Ira as to a segregated portion of said land, the
rentals payable hereunder shall be appnrt ienahle among Urn - wets: 1nrcohulyd owners ratably a,.cording to the surface
area of each, and default in rental payment by one shall oar affnn t the ri!ihts of other leasehold owner'. hereunder.
10. All express or implied covenants of this lease 'hall be anhjrrt In all federal and State Laws. Ixe, olive
Orders, Put-es nr Pegulations, and this lease shall not he ,rno-inated, in while or In part , nor lessen held liable in
damages, for failure Jo comply therewith, if conipl dance is pr -vented tn, nr if such failure is the result of, any
such Law, Order, Putr or t,..rlrlr ti'in, or it prevented by an ;lit ri 'r'ol, of the public enemy, labor disputes, inability
to obtain material , failure of transportation, or other rnn,n beyond fhp- - ontrnl of Lessee -
If during the t-.rn, ar this Ieate, oil or gas or ether hydrocarbon; is disci-tarred upon the leased premises, but
Lessee is prevented from producing the same by reason of any rf the rouses set out in this Section, this lease shall
nevertheless he considered as producing and shall continue in full fm ce and affect until Lessee is permitted to pro-
duce the oil, gas and other hydrocarbons, and as long there,oftcr as ;ueh production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided..
11: Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor ems less than for of the minerals, then, aed in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
•
17. Not withstanding any provision of this lease to the contrary, nn Operations shall he conducted on the above
described land without written entire to the lessor.
13. Upon the termination of this lease in whole- or in part b' election or by failure to cake payments as afore-
said, Lessee or its assigns shall within thirty (30) days retrace by written instrument. the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the hock and pane number 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 hoards of county commissioners, and any provision
herein in conflict therewith shall he inoperative and void.
14. All of the provisions of this lease sha/1 inure to the benefit of and he binding upon the parties hereto,
their heirs, administrators, successors and assigns.
•
8OK
878 1799545
3 -3
15. This agreement shall be hindinq 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,
BOARD or COUNTY COMMISSIONERS
W LP COUNTY, COLORADO �Q -
Aye _:_Dunbar._-_ AbssLLt—Date Presented
r
Aye �1 --'---
Weld County Clerk and Recorder — teinntark
and Clerk I-q the Board Aye /lam Jcfff,
•
_ L4rv�CJ.E'. •
DOUBLE EAGLE PETROLEUM AND MINING COMPANY
LESSEE:By: (/��
_ KM�kUsti_
Richard B. Laudon, President
WYOMING Box 766, Casper, WY 82602
STATE orX%XIXX)O ) (A Wyoming Corporation)
COUNTY orN RONA1 ss.
The foregoing Ins trument was art newt edged before me this 25th daY of July 19 79 by
Richard B. Laudon, President of Double Eagle Petroleum and Mining Company.
M con
Y ss % •-. r,s: Sept. I1 , 1981 Witness my hand and official ;eat.
4s . •••.•.• *`.���`.�.� T A R`pp�
PUBLIC 77/2.,-} s / / a
• MY COMMISSION; 7 Notary PuLlir
-is • EXPIRES Residing in Casper, WY
.•••
,,,,'C011 lit\"�,,,
(303) 623-5055
&and&n -1 WaOatalian
1150 PETROLEUM CLUB BUILDING
DENVER, COLORADO 80202
May 9 , 1979
Weld County Commissioners Office
P. O. Box 758
Greeley, Colorado, 80632
Attention: Ms . Bette Rhoden
Dear Ms . Rhoden:
Sandlin Oil Corporation would like to request that
the following acreage be placed on your next sale of
Oil and Gas Lease List:
Township 1 North, Range 65 West
Section 2: NW/4
Weld County, Colorado
containing-140—acres, more or less
It is our understanding that you are having a sale
at the end of this month, therefore, it might be three or
four months before this tract might appear on a sale.
Please check your records to see if we are on your
mailing list for these sales , if not, please place us on
your list.
Yours very truly,
L tI d
SANDLIN OIL CORPORATION
Kathie D. Kimbrough
KDK: s
Hello