HomeMy WebLinkAbout20160881.tiff RESOLUTION
RE: APPROVE STIPULATION OF INTEREST REGARDING MINERALS AND AUTHORIZE
CHAIR TO SIGN - HEIRS OF CHARLES F. WHEELER
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 affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Stipulation of Interest Regarding
Minerals between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, the living heirs of Charles Wheeler, which are as follows Great
Northern Properties, LLLP, Charles Powell, Charla Spence, Sharon Campbell, Charles J.
Wheeler, John Wheeler, and Marilyn Zelle, commencing upon the full execution of signatures,
with further terms and conditions being as stated in said stipulation of interest, and
WHEREAS, after review, the Board deems it advisable to approve said stipulation of
interest, a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado,that the Stipulation of Interest Regarding Minerals between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and the
Living Heirs of Charles F. Wheeler as listed above be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said stipulation of interest.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 9th day of March, A.D., 2016.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: dial& &C . L
Mike Freeman, Chair
Weld County Clerk to the Board
Sean P.Conway, Pro-T:m
BY•
uty Clerk o the Boar•1�'°"�"+
1.
c4e, 4.arbara irkmeyer
APPR AS
lie ozad
ur y Attorney
11 .4006 Steve Moreno
'"Y°
Date of signature: `° 9
2016-0881
6e : 69003/50 LE0205-1
STIPULATION OF INTERESTS REGARDING MINERALS
This Stipulation of Interests Regarding Minerals is made this 7 t1L day of March, 2016
by and between the Board of County Commissioners of the County of Weld ("County"), a
political subdivision of the State of Colorado and the living heirs of Charles F. Wheeler, which
are as follows (next to each heir is the percentage of the estate to which they are entitled): Great
• Northern Properties, LLLP (1/3 interest); Charles Rollin Powell (1/9 interest); Charla Jeanne
Spence (1/9 interest); Sharon Lynn Campbell (1/9 interest); Charles J. Wheeler(1/9 interest);
John W. Wheeler (1/9 interest); Marilyn A. Zelle (1/9 interest), all of which are collectively
referred to herein as the "Heirs").
RECITALS:
A. By way of explanation, Charles F. Wheeler was born in 1872 and died in 1938.
He was married to K. Blanche Wheeler who was born in 1876 and died in 1965. Charles F.
Wheeler and K. Blanche Wheeler had three children who each inherited a(1/3) interest in the
property of their parents. The three children were:
• Charles A. Wheeler born 3-26-14 and died 1-9-95.
• Sarah Elizabeth Wheeler (Powell)born 5-22-15 and died 1-14-97.
• John R. P. Wheeler born 12-23-16 and died 8-21-92.
All the living heirs of Charles F. Wheeler are grandchildren of Charles F. Wheeler and are the
issue of one of the above listed children of Charles F. Wheeler.
B. On May 11, 1934 Ethel Gooch executed and filed an instrument entitled Deed to
An Undivided Interest in Oil, Gas and Other Minerals. In this document she grants to Charles F.
Wheeler a one-fourth(1/4) interest in her 80 mineral acre parcel with a legal description of; The
East Half of the Northeast Quarter of Section Eight(8), Township Ten(10)North, Range Fifty-
seven(57) West of the 6th P.M., Weld County, Colorado, Hereinafter, the "Subject Property".
This instrument was recorded on May 11, 1934 at Book 960 page 71 of the Weld County Clerk
and Recorder's Office (See Exhibit A).
C. On January 17, 1944 a Treasurer's Deed was issued. The Deed is the vehicle by
which Weld County takes possession of the eighty (80) Acres owned by Ethel Gooch for non-
payment of taxes. This document was recorded on February 4, 1944 in Book 1126, Page 431,
Weld County Records (See Exhibit B). Note that prior to this action taking place the minerals on
twenty (20) acres of the property had already been sold to Charles F. Wheeler via the above
referenced deed.
D. On January 10, 1946 the County sold the Property that they had obtained from
Ethel Gooch to P.H. Ferch for$485.00. The document titled, Deed from County, sold all of the
County's surface rights with regard to the property to Mr. Ferch. This Deed was recorded on
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Carly Koppes, Clerk and Recorder, Weld County, CO
����Eird,1741C19111IVIVIONWIMImillli, III II
January 14, 1946 in Book 1169, Page 259, Weld County Records. The deed does contain a
mineral reservation reserving all rights in the minerals to Weld County, leaving 60 mineral acres
for Weld County since when they took the property from Mrs. Gooch for non-payment of taxes
she had already sold twenty (20) mineral acres to Charles F. Wheeler (See Exhibit C).
E. As between any heirs of P.H. Ferch and Weld County all matters have been
resolved. Contex Energy Company entered into a Paid-Up Oil and Gas lease with Jackie Lee
Fiscus and Shirley Fiscus in March of 2010, under the believe that Mr. and Mrs. Fiscus were the
rightfully owner of 80 mineral acres ( See Exhibit D). Mr. and Mrs. Fiscus are in the chain of
title from P.H. Ferch. The lease from Contex failed to recognize the reservation of minerals by
the County when they sold the property to P.H. Ferch in 1946. This problem has been rectified
and the current lease on the minerals entered into on January 26, 2015, is with the County of
Weld (See Exhibit E). Jackie Lee and Shirley Fiscus have renounced any claims to the minerals
on the land first described above in paragraph A.
F. The current lease between Contex and Weld County is in error in that the lease
contains all eighty (80) acres of minerals originally owned by Ethel Gooch. The County of Weld
recognizes that at the time the County took control of this property in 1944 (See Exhibit B) Ms.
Gooch only had sixty (60) mineral acres as she had previously sold twenty (20) acres to Charles
F. Wheeler. In order to clarify and correct this problem the County of Weld has executed the
attached Affidavit signed by the Chair of the County Commissioners with authority from the
County Commissioners of Weld County. The affidavit is a recognition that twenty (20) mineral
acres on the above described property belong to the heirs of Charles F. Wheeler.
G. The Heirs hereby disclaim any interest in any payment received by the County
pursuant to the lease with Contex, to the extent such payments have already been received prior
to the date this Stipulation is executed. The County agrees to work with Contex to amend said
lease to account for the Heirs'
NOW WHEREFORE, for and in consideration Ten Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
AGREE and STIPULATE that each owns the undivided fractional mineral interest in the
Subject Lands as set forth below, and to the extent necessary to establish ownership as herein
indicated, do GRANT, BARGAIN, SELL, QUITCLAIM, ASSIGN and CROSS CONVEY to
each other their respective interest in the oil and gas in and under the Subject Land described as
follows: The East Half of the Northeast Quarter of Section Eight(8), Township Ten (10)North,
Range Fifty-seven (57) West of the 6th P.M., Weld County, Colorado. The Parties further intend
by this document to clear the title to minerals located on the Subject Land and to clarify that of
the eighty (80) minerals on the Subject Property, twenty (20) mineral acres belong to the living
heirs of Charles F. Wheeler to be divided as follows:
• Great Northern Properties, LLLP (1/3 interest);
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Carly Koppes, Clerk and Recorder, Weld County, CO
•ii IMIFOI 'flifiliCaIi rillo5 ia4'ri ll h 1I III
• Charles Rollin Powell (1/9 interest);
• Charla Jeanne Spence (1/9 interest);
• Sharon Lynn Campbell (1/9 interest);
• Charles J. Wheeler(1/9 interest);
• John W. Wheeler(1/9 interest);
• Marilyn A. Zelle (1/9 interest).
The other sixty (60) mineral acres belong to the County of Weld, a political subdivision of the
State of Colorado.
Effective for all purposes as of the date first written above:
ATTEST: f % ;ei BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the Board WELD COUNTY, COLORADO
By: La
Deputy Clerk t the Board e Freeman, Chair MAR 0 9 2O16
APPROVED AS TO FORM: ISM
County Attorney j�+✓'
THE HEIRS OF CHARLES F. WHEELER
GREAT NORTHERN PROPERTIES, LLLP
BY:
CHARLES ROLLIN POWELL
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03/15/2016 02:49 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO
CHARLA JEANNE SPENCE 1111 '.f�. ��L�ivitoj' '1kittRAI ��„ IN 11111
3
c)2 -dr5
• Charles Rollin Powell(1/9 interest);
• Charla Jeanne Spence(1/9 interest);
• Sharon Lynn Campbell(1/9 interest);
• Charles J. Wheeler(1/9 interest);
• John W.Wheeler(1/9 interest);
G Marilyn A. Zelle(1/9 interest).
The other sixty(60)mineral acres belong to the County of Weld,a political subdivision of the
State of Colorado.
Effective for all purposes as of the date first written above:
ATTEST: BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the Board WELD COUNTY, COLORADO
E See Previous Page.
Deputy Clerk to the Board
APPROVED AS TO FORM:
County Attorney
THE HEIRS OF CHARLES F. WHEELER
GREAT NORTHERN PROPERTIES,LLLP
im?,_
BY:
CHARLES ROLLIN POWELL
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CHARLA JEANNE SPENCE Carly Koppes, Clerk and Recorder, Weld County, Co
NUrdNIT IMPL Leif G I4 Waal'i1 aI III
3
SHARON LYNN CAMPBELL
CHARLES J.WHEELER
JOHN W.WHEELER
MARILYN A. ZELLE
SUBSCRIBED AND SWORN to before me this 26( day ofC.er4er ,2015,
by EIS e* CALized r,known to me to be the person who executed the
within instrument and acknowledged to me that the contents therein contained are true to the best
of his knowledge,information and belief, and that he executed the same as his free act and deed.
WITNESS MY OFFICIAL HAND AND SEAL.
}
Notary Public
My Commission Expires: j 1212017
BARBARA n BRACK TT
STA `2 COLC DO
NOTARY ID 10974001427
MY C0 l s11 51f N EXPIRES JAN. 23, 2011
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Carly Koppes, Clerk and Recorder, Weld County, CO
"III
4
Charles Rollin Powell(1/9 interest);
Charla Jeanne Spence(1/9 interest);
Sharon Lynn Campbell (1/9 interest);
Charles J. Wheeler(1/9 interest);
John W. Wheeler(1/9 interest);
Marilyn A. Zelle(1/9 interest).
The other sixty(60)mineral acres belong to the County of Weld, a political subdivision of the
State of Colorado.
Effective for all purposes as of the date first written above:
ATTEST: BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the Board WELD COUNTY, COLORADO
`,r See Previous Page.
Deputy Clerk to the Board
APPROVED AS TO FORM:
County Attorney
THE HEIRS OF CHARLES F. WHEELER
GREAT NORTHERN PROPERTIES, LLLP
CHARLES ROLLI WELL SHERAZ FRANCIS oc�°l.f)
NOTARY PUBLIC
COMMONWEALTH OF VIRGINIA L��
MY COMMISSION EXPIRES FEB.29.201 B
COMMISSION N 7105839
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CHARLA JEANivE SPENCE Carly Koppes, Clerk and Recorder, Weld County, CO
iii RiCtiMEMEXLIMMillhAlialKI MO U. II III
3
a Charles Rollin Powell (1/9 interest);
a Charla Jeanne Spence(1/9 interest);
• Sharon Lynn Campbell(1/9 interest);
• Charles J.Wheeler(1/9 interest);
• John W. Wheeler(1/9 interest);
• Marilyn A. Zelle(1/9 interest).
The other sixty(60)mineral acres belong to the County of Weld,a political subdivision ate
State of Colorado.
Effective for all purposes as of the date first written above:
ATTEST: BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the Board WELD COUNTY,COLORADO
By: See Previous Page.
Deputy Clerk to the Board
APPROVED AS TO FORM:
County Attorney
THE HEIRS OF CHARLES F.WHEELER
GREAT NORTHERN PROPERTIES,LLLP
BY:
CHARLES ROLLIN POWELL
dCHAR JEANNE SPENCE
AL—:9121400-ce--) ee_il_.,
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Carly Koppes, Clerk and Recorder, Weld County, CO
VIII ' 'rf hYLIrlich i14' Iilhk II II
SHARON LYNN CAMPBELL
CHARLES J.WHEELER
JOHN W.WHEELER
MARILYN A.ZELLE
.041.
SUBSCRIBED AND SWORN to before me this 651-1' day of '1-Qx, ucWL. ,2015;
A, r
by -AL-L---NAMES eltirl,; Ietn, 5(44 known to me to be the person Oho executed the
within instrument and acknowledged to me that the contents therein contained are true to the best
of his-knowledge,information and belief,and that he executed the same as his free act and deed.
't Aos6 „plot-
-
WITNESS MY OFFICIAL HAND AND SEAL.
Notary Public
My Commission Expires: KENTON R.HELSER
S n Commi
2N0TARY PUBLIGCALIFORNIAssionNo. 2011828
RIVERSIOE COUNTY
My Comm.Expire*MARCH 14.2017
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Carly Koppes, Clerk and Recorder, Weld County, CO
kirAVVII IAN!,!, "III
4
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SHARON LYNN CAMPBELL
.z„e;
CHARLES J. WHEEL.FR
JOHN W. WHEELER
MARILYN A.ZELLE
2-W6
SUBSCRIBED AND SWORN to before me this /'7 day of lc,h v 2e��el
5-44cc A"n 0411,0,c1/
by ALL NAMES ,known to me to be the person who executed the
within instrument and acknowledged to me that the contents therein contained are true to the best
of his knowledge,information and belief,and that he executed the same as his free act and deed.
WITNESS MY OFFICIAL HAND AND SEAL.
Notary Public
My Commission Expires. /2.2
r. 7` RENEE UNIONS -4
COMM.#2060583
U_t ;•. NOTARY Puetc-cat!F0RNla 0
sa,ANO COUNTY
My Comm.Expires MAR. 9,2018"1
4
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Carly Koppes, Clerk and Recorder, Weld County, CO
lIII l IAMIA hI`�'IY��1 W!'IS f� 'F'�iii � if4rh �I II
SFFi;\RC)\ LYNN C'A\IPF3FI.i
CHARLF.S J. \VIIFI:LER
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J(.)HN \1". WHEELER
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BARBARA IL BRACKETT
NOTARY PUBLIC
MARILYN A. I1:1.I.E STATE OF COLORADO
NOTLLMSSNEXPESJAN23, 20l?J
RY ID
Sl i3SC'R1I3ED AND SWORN to before me this Imo. _ day of __1Ui4 1..ar . 2015.
bk. ALI. NAMES . known to me to he the person who executed the
\vithin instrument and acknowledged to me that the contents therein contained are true to the hest
of his knowledge. information and belief,and that he executed the same as his free act and deed.
1\ fl\j 55 :MY OFFICIAL HAND 4) ANt) SEAL.
' k,„ 61,02iktht—
�,! Notary Public:
My Commission Expires: if 2 ' ! 2017
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Carly Koppes, Clerk and Recorder, Weld County, CO
VIII IMIEriiiiiVINCIOWithtN Mini ilyi III III
4
SHARON LYNN C 1\1PBF:I.I
C1IARI.PE J. \VIIFFI.ER
JOHN W. WHEELER
MAR1i. 'N A..'.FI.I.E
SUBSCRIBED .AND SWORN to before me this 1/—day of 204..
b ALL NAMES . known to me to be ie pet-soti -)executed the
within instrument and acknowledged to me that the contents erein con ed are true to the best
of his knowled._'e. information and belief.and that he executed the sam as his free act and deed.
WITNESS MY OFFICIAL 'LAND AND SEAL.
Notary uhlie
My Commission F:pires:,i"rAv-_ /F
er:pt,�
'�► CAROL G t1LMER
• .� Notary Public-Arizona
Maricopa County
frorllrn.Expires May 10,2018
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Carly Koppes, Clerk and Recorder, Weld County, CO
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EXHIBIT
!` R''ticoaded___(1►!!1C_Ll_19 4_at_io O'clockA_M, ROOk 960 PAGE 71
1 1 O ORA BOOS AND dTASIOsrDIIZ CO. ----k---
Form 04 -_lic�eDfiPn N6S9 OALIER_EJ1 CIRRJ.,IIH,fu corder P
C '97 East Douglas Ave..Wichita.SaltnN
MIIMMINIMMENE
• Deed to An Undivided Interest in Oil, Gas and Other Minerals
THIS INDENTURE,made fills 2nd..,, day of May A.D.,1P..5.4 between
Ethel Gooch
of City of Ft. Collins of Larimer Count: , State of Colorado.
the party of the first part(whether one or more) and Charles F. 1?heeler
Of the Oity of Greeley or Meld County, State of Color0o.party
of the second part. '
WIT N E S S E T H: That the said party of the first part,for and in consideration of the sum of
....Cnq,..D.QUar e.nd other good and valuable considerations
to us...LLe.r in hand paid by the said party of the second part, the receipt whereof is hereby acknowledged, does by these
presents grant,bargain,sell, release and forever quit claim unto the said party of the second part and to his heirs
and assigns forever an undivided 1., 4 interest in a ld to all of the oil, gas and other minerals whatsoever in and
under the following described land situate in
County, State ofNini,Pta. it:
The East Half of the Northeast 2uarter of Section
Eight (8..)., T.Qwash.in....Ten.._(10)....North, Range Fifty-seven (57) West of
the Rth....P Lo, Wen....C.ount.y, C.a.1.o.r.ac1o
uf'Sectlbn ;-cawnehip' sa:,tlt P.'s . ea,t of the-6th-P,-41.1..,and containing 80 •leres more or
less. Together with the rights of ingress and egress at all time::for the purpose of mining,drilling and exploring said land,for
oil,gas and other minerals,and removing the same therefrom,and any and all rights and privileges necessary, incident to, or
convenient for the economical operation of said land for such purpose.
TO HAVE AND TO.HOLD all and singular said premises, together with the appurtenances and privileges thereto inci-
dent unto the said party of the second part, hi.& heirs and assigns forever.
If such land is covered by a valid oil and gas or other mineral leas:,the art of the second part, his heirs and
assigns,by this instrument shall have an undivided one—I Our Cri 7�4/ y interest in the Royalties,Rentals,and
Proceeds therefrom, of whatsoever nature.
WITNESSS OUR HANDS AND SEALS the day and year first above writteen(..�� 4
WITN Sff LC .227 ivr•�w\ ,c"Yr�, (Seal)
ce.4 /,/..:f.drA..rl..'��.._,._._.�. • (Seal)
c. /Gj ---Z•-</:
/:
L4,.�rG..� ... .� : c.G.. �/• r _., (Seal)
BOOK "ivy PAGE 71 _ _
• • ACKNOWLEDGMENT ' •
COLORADO (Show the marital relation of the persons,or,if single,state so)
STATE OF=tea '• .l SS. •
County of., WELD- ' J • .
•
:,:1-a
•"v.tlf e.f ncl.a day of may before me personally appeared 19 4, a •Ilv a e ed
....r C?:.''
. C',,�F,t' _Ethel Gooch
.)no knorfa•to be.the pepson....described in and who executed the foregoing instrument,thld acknowledg
E. ed that •-. •
t' .b...t.4 .AV.,.,tj^"1 executed the same as her free act and deed.
Ai ', P6 Fitness s... . -..v and official seal, the day and year last above writteryr�� Q /J
1, , 'Fitness "v it (( �(
x '' LC�i1T�7 ct1 December 16 1936 . ...._._...
o hfy`co�pmisiioizek`pires r
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EXHIBIT
Rewrg�g 4 1944 77 , „ •� c�g
at '_ti'clock-�M. @00�� PAGE 431 I B
Reception NM. An Sommer,Recorder
TREASURER'S DEED TO COUNTY—The McVey Printery,G�rrectey,�o orido
Kama all fl:ell by tbear Ur Ueltto, That,Whereas,the following described real property, viz:
E}N}: Section 8, Township 10 North, Range 57 West of the 6th P. 1'
•
•
•
•
situated in the County of Weld and State of Colorado, was subject to taxation for the year(=Arm)A.D.,19 35
AND WHEREAS,the taxes assessed upon said.property.for the year (ttacyess9) aforesaid remained due and
unpaid at the date of the sale hereinafter named;
AND WHEREAS,the Treasurer of the said County
above described-on-'or—before the second Monday of Beeomber,A.D.,19 ,for and en aceotmt and Lc cause of the
•following-malts
' ,did,on
the....l.L.th...day of_..R.1eg{tUer ,A.D.,19 39 by virtue of the authority vested in him by law, at an
iiii adjourned sale,the sale begun and publicly held on the 1U1t...day of December ,A.D., 19 39,expose
2 to public sale at the office of the Treasurer, in the County aforesaid, in substantial conformity with the require-
ments of the statute in such case made and provided,the real property above described for the payment of the
taxes,interest and costs then due and remaining unpaid on said property;
o
o i AND WHEREAS,at the sale so held as aforesaid by the Treasurer, no bids were offered or made by any
a person or persons for the said property and no person or persons having offered to pay the said taxes,interest and
x costs upon the said property for that year tImgosamsX and the said Treasurer having passed such real property over
c°M for the time,did re-offer it at the beginning of the sale the next day(and each succeeding day of said sale) and the
Treasurer having become satisfied that no sale of said property could be had, therefore,the said property was,by
m'a m7 the then Treasurer of the said County, stricken off to the said County,and certificate....of sale (was) (Itag duly
.—at,3 issued therefor to the said County in accordance with the statute in such case made and provided.
e.)
• - AND WHEREAS the said propert..Y.... (was) (Wegisevertkryl assessed for that year re ) at a sum of
w"v--aO y-o i lase(more) than one hundred dollars:
al(7li`o AND WHEREAS the said County has held said Certificate.... of sale for three years or more and the said
•-i ? propert..y..has thane) not been redeemed therefrom as provided by law.
IX E12
ISI AND WHEREAS the Board of County Commissioners of said County has made application for a tax deed;
QI a a- AND WHEREAS all the provisions of the statutes prescribing prerequisites to obtaining tax deeds have been
aa) fully complied with, and are now of record and filed in the office of the County Treasurer of said County;
NOW THEREFORE, I ...I9rPla H. Seaman ,Treasurer of the County aforesaid,and by virtue
No
- of the statute in such case made and provided,have granted, bargained and sold and by these`presents do grant,
m rn bargain and sell the above and foregoing described real estate unto the said County of Weld, forever, subject to
•"a k 1 all rights of redemption by minors,insane persons or idiots provided by law. .r •
wi-N COG o , Harold H. Seeman
N Y IN WITNESS WHEREOF, I, , Treasurer as aforesaid;by Virtue of'the
authority aforesaid,have hereunto •set my hand and seal this..._.kith of t i-3'.,. u A D.,19. '1q.
co�—= t ;
711.m:75
Treasurer of Weld CoUnty'Colorado.
Certificate No. 92A Book No. 11 Tax Sale Record.
Year of Sale 1939 S.D. 93
BOOKII2O PAGE432 -
STATE OF COLORADO;lss.
COUNTY OF WELD JJf
The foregoing instrument was acknowledged before me this.2X& day of.....E.bhlltdry ,Ai D.,19.4}
by Harold H. Seaman as County Treasurer in and for the County of Weld in the
State of colorado.,
M`CY111ai sinfi1SQ irFa
`yam• fness my tiHnd 2nd official seal this and day of February ,D, 4¢,
•
• �+ Qi l ft4 Of D1 1 RICT 1:OUN I, 4
Oei, , l ti Count„I Colorado.
No.
TREASURER'S DEED
from
TREASURER I TLD COUNTY
County Treasurer.
TO THE
County of Weld, Colorado
STATE OF COLORADO
COUNTY OF WELD SS.
I hereby certify that this deed was filed
for record in my office at 9'°o'clock
FEB 4 1944 19
J�7 / ,
8 and is duly recorded in Book�1a:g..la
Page �n
Llv'V X
• 69 Recorder.
Oyu
• ti o By
rrl
De0y.
go.ro Fees,$
aa_a)�
� Cert. No. Book No.
N •
CO Year of Sale S.D. '
tp b I TAX SALE RECORD
QO m a
NN Y When Recorded Return to
�mc>• °� ,
a141946 9c.%
2
.......----
o ate'
DEED FROM COUNTY—The McVey Printery,Greeley,Colo. A=rrenrlo `t''Vni: 1'"f_-Ann$:""" p,—"' t
Knout .All i'ii Pll blj MiiPSP PTP.Pirllfl3,That Whereas,a Treasurer's Deed(s)wacvc(were)executed
17th • January 1944
on the....LOU....day of..Deceather ,19-.A0,conveying the hereinafter described property.to Weld County,
a lawfully constituted county of the State of Colorado,and said Treasurer's Deed(s)=am (were) duly recorded in
Book(s)1..7.3 :at Page(s)194 in the records of the County Clerk and Recorder of theCounty of Weld,State of
Colorado-26 431
•
AND WHEREAS the County Commissioners of the County of Weld did elect to sell said property as provided
• by law,and did cause notice of sale at public auction of such Real Estate to be advertised in two issues of •
Greeley..Bomater ,a newspaper of general circulation in the said County of Weld;
the first notice advertised not more than thirty days nor less than twenty days before the date of such sale, and
second notice advertised not more than fifteen days nor less than five days before such sale,ai(d did post said notice
in a public place in the County Courthouse for at least thirty days before the date of such sale; and thereupon did
offer such real estate for sale at public auction tpnixvixxm:de)C on the.....19th....day of.December ,194.5,
(at time and place as stated in said advertised notice;)
AND WHEREAS,P...IL....F.ereh of the ersatntgx4tx..0.ity...&..Qounty..of..11enxer
State of 001.oreslo ,bid for said property the sum of..fobr..ht ndrnd..alglity...fiva DOLLARS
and no CENTS,which bid being the highest and best bid for cash in hand (and being more than
one-third of the latest appraisal of the full cash value made by the County Assessor of said property) was accepted
by the Board of County Commissioners of the said County of Weld;
AND WHEREAS, the said......P....ff....Fer..e.h has paid the sum of
i'.our..hortdr.ed..elrthtx..SiYa DOLLARS and n.a CENTS
in full payment of said bid for said property: .
NOW THEREFORE, Weld County,by Har'Q14..Ii. Seel= its Commissioner appointed to execute
this deed being the same person as..Barrold..H....Beamto ,the duly qualified>( prrtjc) County Treasurer of
Weld County,acting upon the direction of the Board of County Commissioners of Weld County and as J(i)egmt1t);
County Treasurer,in executing this deed,for and in consideration of the sum of.fQMr...huadfed..li iShGY five
DOLLARS and no CENTS,paid as aforesaid,and by virtue of the statutes in such case made and
provided,by these presents does grant,bargain and sell the following described real estate,to-wit:
Vi. 75 ft. lots 14 to 16, Block 45, Hudson.
E NE'Section 8, Twp. 10 N. Range 57 W.
•
•
except reservations in favor of the Union Pacific Railroad Company and except reservations in the United States
Patent and reserving existing reservoir sites and irrigation ditches,if any, existing rights of way for public high-
ways and roads,and to any and all existing easements or rights of way,however evidenced or acquired,and subject to
existing leases and reserving therefrom, to grantor, all oil,gas and other minerals therein or thereunder,
III situate,lying and being in the County of Weld,State of Colorado,unto the said..P...-.H....Eemh
c(tbeircM)rea) his heirs and assigns,without any covenants of warranty whatsoever and subject to all the rights of
redemption by minors, insane persons or idiots as provided by law.
This deed is made pursuant to resolution of the Board of County Commissioners of Weld County, Colorado, •
8 duly made and entered of record in its proceedings the....17-th day of....t afiemtttir ,A.D.19.4D.,
& appointing ..Harold..$...effi8J afl , Commissioner aforesaid,to execute this deed in behalf of Weld County,
and to affix the seal of Weld County, Colorado, conveying said real estate to second party hereto.
3 3 IN WITNESS WHEREOF, I,...Harold..B...Seaman , Commissioner appointed to execute this
a
deed,on behalf of said County and by virtue of the authority contained in the order made by said Board of County
�N•3 Commissioners on the .1 7th day of A4E.4ttltRr 19.45-..;have
‘-'6) =, i r' hereunto set my hand and affixed the seal of said County this 1.Qth , •day of.
• w dan.uery , , 19.4 ...,for the a es and ur ses therein set forth.
O tem—
to u..
o • `> SEAL Y, r�AL)
• re co m -, Its Commissioner to execute this deed and
in 1'fi .•C ' asx( 4n¢7�County Treasurer of*etr(;County.
V a 0"'—■ STATE OF COLORADOi -
Y= COUNTY oP WELD }SS.
A��� •
O_ d The foregoing instrument was acknowledged before me this.aatu....day of alai:mfsry ,A.D.1946
NmU by Harold•..Il..:•-S atnan ,Commissioner appointed to execute this deed.
to d WITNESS my Hand and Official Seal.
COG o .ZEOE ...TAT. . ....
ia to ' • -
L Clerk Dietriet Cour I'1eld ainrtyyi;rtbQfolo.
ermo�
390 •
•
Frodac,r as
Reeky leosnan tale PAID-UP
) "'"`""' OIL AND GAS LEASE
PAS AGREEMENT,made and entered Intl this 29th day of March ,2* IS ,by end between
Jackie Lee Fiscus,a/k/a Jackie L.Fiscusf a/k/a.Jackie Fiscus and Shirley Plseua,a/k/a Shirley A.Risens!husband and
wife,as joint tenants -'
a 9234 County Road 2.5,Merino,CO.80741 ,tareinatbw called beer Whether one or more),and
Coates Energy Company .dose address is 621-17's Street,Suite 1020, Denver,CO 30293 .hereinafter ceded lessee
WfTMFSSETi:
That lessor,lot and In consideration or TEN&MORE doles(s 10.04+ )in hand peid,receipt of which is helm,adanwledgeo,and or
to agreerxne of lessee hereinafter set forth,hereby grams,demises.leases and lets exclusivey was lessee the lands described below for the purpose of awaigaieg.
Pr npeetbig,.xFlddng(by geoPlysk:el end other methods).Mena,mining,operating for end Inducing ad or gas,or both(as domed beer,).together with the fight r
Cntetrct and rasnatn ppesnee,teapronle are*Panic nee tanks,ponds,roadways,planes,egtspnnent,and Miclaree thereon to produce save end take care of said
di end gas(Meth right shell hands Specifically a right-of-way and easement ica ingress to and egress from sad lands by lessee,or its easlNkee,agents or permlleee,
necessary to or assodeted oath the donalNctan and melatertanoe of such pipe Ines,telephone and electric linsa,tanks,ponds,roadways,Puma.eq:oPment,and
atructurae on said tends to produce,save and take dare of the all and gas),and the exdvske tehe lo inleol at.gee,water,brine and other Cu ds tom any same into the
rpibaurrade strata,and wry and an other lights and privileges neoeaary,incident to.or convenient for the econorriref operation of said tend,alone Or oaeloeify well
reigniceng lamb,for the production.sae g and taking ewe ofair and gas and the injection of air,pas.water,brine,and other kids Into the subs afoot strata said lands
being shared in ms County or Weld ,Mete of Colorado
deathbed as alrrrra,toad[
Towushiu 10 North,Range 57 West,6th P.M.
Section 03:PJ2NE/4
3692390 06111/2010 10,'33A Weld County,CO
1 of 2 R 11.00 D 0.00 Steve Moreno Clerk&Recorder
and containing _ 30.00 acres,more or tees.
Ir Walden to the land deeoleed above,bum hereby greats,lames and lets erafaively unto lasses,to the earn.WWII as if specialty described.Wide which are
owned or donned by lessor by one of the following reams:ft)all lands and rights acquired or retained by lessor by avulsion,accretion,rlinden or otherwise es the
result or e ohanpe in the boundaries or centerline of any river or stream traversing or adjoining the lends dewxibed above;(2)al riparian Wee:and ogles which we or
may be Incident,airpurtenam,wood or attributed Al lessor In any bike,stream or river traversing or adpinmg the lands described above by new of lessors ownership
Mete land described above;(3)all lands included in any road,easement or right-m-way traversing or adjoining the lands described above With are or may lea incident
accunenert tented or airtuhed to lessor by virtue of Mar's ownership of the land described above;and(4)all sets or tracts of tae Omen or odetlr,A,ove to the
lends demoted atom owned or bemired by Wear through adverse poaspaon or otter similar states of the date in which the lends are locale.
The tans on as used en tale lease shell be Interpreted to Ingrate any liquid hydrocarbon eube4ances which occur naturally in the earth,inceditg drip gasoline or other
natural condensate recovered from gas without resort to menrAadunng process_The term gas as used in rile less.shaft be Intearetad to hrieie any inelegance,either
oenbusebfe or nnoncmhbueOble.welch is produced in a,mural stale from the earth and when rrwimteira a gaseous or,trued stalest ordinary temperature and pressure
condemn,including but not limited to hefiem,nitrogen,carbon diadde,hydrogen sulphide,coat bed methane s,ge daaitghead gas and auipha.
6 ADM a the other provisions herein contained.this case Man remain in farce tore farm of Five(5) years tom neertate pieced coded"printery
term)and as king thereafter es on and gee,or either at them,is produced ken the teased premises or drift operations are condnuwsly poasou ed.For purposes at
this base.a well completed for the production of combed methane gee shall be deemed to be producing gas under this lease at all Omes wen deraterbbgg of the come
eaten tram which the amend methane gas will be produced is occurring.For punnets of thie base,`dels^g operations'shall indude comae me for to drilling of a new
wad Wei operations for the reworking,deepening or plugging beck its wan or hoe or other epseserre Conducted In an effort to enatiiih,resume or re-establish
production Mail and gar Mang operations shag be considered to be tconinuousty prosecuted'if not more than one hundred twenty(120)taya then naps brtnaen the
completion and abandonment of one well or hose and the commencement of drillng operetbro on another well or hole;drilling decagons shall be deemed to ha
commenced breve*eel el such erne as ease.has begun the construction of the wdbfte location or the road M ed i provides access en ae welol a location;and
drilling operations shall be deemed to be commenced with respect to reworking,deepening,plugging Wok or ether operations conducted in WI effort to resume or ho-
esieblise prrduclor ofd and gas at such time as lessee has the requisite equipment for such opranne at lra walede.
2.The lessee shad dskvar to the credit of the lessor as royally,free of cost.Into the Wes or e the pipe line en the leased premise.to wind lessee may maimed its
wens the emit!One Sleet(7ete)of all on produced and saved from the lessee pernises,or aaee may from ems to time at is credos prate see any royalty oh in Its
possession,paying the market peas thereof prevailing tie ca of Ina grade and gravy in the kid where produced on the date of purchase.
The leases Wall pay lessor.se royalty,on gas,including caeirgheed gas or other gaseous substances,produced hem the seed prensue and sold or used on the
n-emien or used h the meaaadure of gasoline or other products,the medial value al the eel of One Sixth(Ilalh)M We gas sold r used,weeded that on gas sold the
royalty shed be One Sixth(116th)of fie amount Merced horn aural ale.The*mourn reeked Iron he sale of gas anal be the price eaabished by the gas soles
contract entered 1ato in goad With by lapse and a gas purchaser for audh term and under such commons es are customary in the ihdrsey.Rim still manes the net
amount repaired by lessee sitter giving effect to imitable regulatory order,and after ap licailon of any applicable pees adjustments spelled!n such contract or
regWgtory cetera b the avert lessee compresses.items,puttees or dehydrates such gas(whether on or alt the land trellises)or baragorb gas off tie leased
plemaas,lessee to COMPnding royalty hereunder may deduct cram such price a reasonable charge Er each of such functions performed;irrludrg asaodated Reel
3.This is a paid-up Leese and at rash consideration fret recited above and annual rentals have been paid to lessor in severest to keep tines amine in full tom and effect
thowillmut the primary ben.In con eeeneon of the payment of such cash consideration and advents annual rentals,lessor agrees that wren elan ial lea dbugaled,
except as wheMse provided herein,to commence Or coaenCa any opratbn*during tie primary barn Lessee may at airy time or times dire;or altar the primary term
surrender this base as b al r any portion drthe tend dencdbed above,and ea to any strata or strata,by degrade*to lessor or by fling of raved a releea rreleeaa•
and be regard of ail obligations theratar accruing to the acreage emendated.
4.Any peymeNe required to be made to lawn pursuant to this lase,°EM then the payment of toyffiies,may be paid by lessee b to tea:or or to lessor's coda in
Iles N/A Sank,at N/A
forks successor or successors,or any bank With which It may be merged or consolidated or welch succeeds to its business assets or wry pout thereof,by purchase or
otherwise)when seen memos as the depoeitory regardless of changes h the ownership or seid and or the dt and gas.M such payments may be made by ash,cheek
or draft,maid or deemed on or before the due dote for that paynerd.Any payments so mede nine be binding on the hero,devisees.exact"administrators.and
personae repre enistives of beer end on lames a wessors In interest or on lessors assigns.
e•it,at ea exar eon of the Snag term of uhle tease,od or gas a net benne pmxarces from the leased animines bed lease**hen engage(,r ddlhtg operetta,into
less shell eaninue in rem 10 long as Oiling°Orator's are continuously prosecuted;and d prodoeeon of es or gas mums ham any such mi Pori opereaoa.Ibis Man.
shag isonfinue in fora so long as os or gas shell be produced foe the eased promisee.II,seer the aspiration of the primary term of this lease production on the leased
premiees should cease for any roue,Iles Wise Well not terrsInsht if lessee is tan engaged in dnlsing operations.or within ore hundred Wirer(120)days after welt
such cessation r emu:son commences or returned drilling Operations.and this ease grad remain in force so long as dining operations are contin
uously prosecuted,
*ltd If production,toots therahom,then as long thanhstbr as cif or pee a produced from nine leased premises.
6,gat cry tans,shine before of after the expiration of the primary term of this lease,there teasel capable of producing oil or gas on lands covered by this base or
on other lends wile whedi lands covered by this lease are posed or unitized,but the well Is Mu6in,whether before Or alter producOon thereitl4 s.d its tease es net
being malntabned otherwise as provided herein,this tease shall not ermine*(unless released by lessee)and it shall nevert ereos be considae that d or gab being
produced tun sands covered by this sae during ati times white the well is so strut-1n.Lewes shall nee reasonable dirgeno°to market the cl or gas capable of being
produced acs such ahrbh,wed,but shall be under so Obligation to matte the oil or gas under terms,conditions or aranelencee which,in let seas Magnet exercised
In good faith,are onestiaradloy Veen the lease Is continued in force In miss manner,lessee shall pay or terser to the ever or Mean's eurcessore or melees,en snWLm
equal to 31.00 par year per nab mineral acre covered by to est a Such payments shell ea made on or before the ehul-in royalty payment data,as dared below,next
occurring after Ile aspiration of one hundred twenty(120)days from the dale the welt was ahul•h,unless ono-es such date oil or gas km the she is soil or wed firths
lease Is ohenvise maintained as provtlad herein.In eke miner,on or before each succeeding stag-In royalty payment dem 040 such wee miens ns sheen,lease shah
moire peewit of shoal-in royalty in the same amount end manner The tan shuFln royalty payment date"shad man Hat anniversary dale to boa tau.My(Amin
royahy payment mei be made by oeti,dray or check,mailed or tendered on Or before the shuouh royalty date.Lessee's failure to pay or tender,of property pay or
tender,any sodh cam Wan render laoeee dame for Me amount due but a shall nil Operate to terminate(Ottawa.
7.t asst owns a lesser keenest al the above described lnd than the entire and undvid.d be simple estate therein.then the roysttes,Educible shut-in royalty,
herein provided Man be pied to reser only to the pmportbn which lessors interest beefs to Ina whole and undivided fa.Any Interest In I rodolon from the lands
described herein to which tint Interest of lessor may be ablest sisd be denuded tom the royalty herds reaemed.
K.Lessee sten have the,hided to use,free of cost,gas,oil and water produced on said land for its operation thereon,except water from wean and reservoirs of lessor
Lessee shall has.the right al any time to remove all machinery and triures placed on sand premises,inducting the right to drew any Amore aeinp.
a.Lessee shell pay to lessor reeeonab le*mane for damages caused byes operations to groping crops on aid lent When requested by leer,aaase shall lorry es
pipelines winch traverse calmed ante below plow depth.Mo well shall be drilled nearer than bib hundred(200)feet toe house or barn now on said premises.without
ertlen consent Cl lessor.Lama elan have the right at any tams(but not the obigekel,to remove at improvements,machinery,and astern MOM Or erected by*sane
an said pep isle,including the right to pus and remove castngt
4188248 Pages: 16 of 31
03/15/2016 02:49 PM R Fee:$0.00
Carly Koppes, Clerk and Recorder, Weld County, CO
lid Bill
10.Lessee Is hereby given the right and power at any tens and Imre thee to time as a recurring right either betas matter pmdrrodoe,as to ore or any part d the fend
described above and as to any me or more of the formations hereunder,to pod or mink*the leasehold estate and the mineral estate covered by this these with other
lard,ke s or teases in the Irraiadlete vicinity for the production of on end gee,or arg erntay for the production of either,when in Iaeea's Judgment it is necessary or
edvbeale to do so,a+d lr epecen of whether authority similar to the edits with reaped to such oaer lend,lease or teases.Likewise,units previously formed to Include
lemratoo not producing dl or gea may be reformed to exclude such non-Woducleg a meaaons.The taming or return%of any unit shed ha acaompleehed by leewa
executing and Ielag in record a daekreym or suds unitization or reformation,whith dedaretm steal deemSle the unit Any unit may Include tend upon which a wall has
hatetdfore been completed or upon which skiling operations have been canmenned.Producron,dritlne or reeorldrg operations or a well sitrabh for any feaeon
anywhere on o and which Includes ea or a part of this we shad be treated eeriness pmduc don,drilling or rew rtkng operations or a nee Munn under Ind lease.In
lieu din Royale=elsewhere heroin apectted.lessor shall receive on production room the urn so posed mean omy m the pardoner such production albo*ed to 1155
leesa;ouch alWwdm shalt be tut proportion of the unit protection that the total surlier of outface acres covered by title lase and inducted in the unit beers to Me total
number of surface was in such unit
it Lessee she new the right to unitize,pod,or combine slatted part at the tend deserted above as to one or more of the'aerations thereunder with other lands
in the same general arse by entering ems montane or unit than of development or°pennlon approved by any governmental au horty end,ham time to lbw,nth Ike
approval,to motley,change or laminate any such plan or agreement end.in such event.the terms.cadmons,end provisions ether lass*shed be deemed modified to
conform to the terns,imitations,oral provisions of such approved cocprative et unit plan of development or operation and partaaery.at*ding and deehlopmenl
requirements Odes lease.express or implied,shit be satisfied by compliance Oh the Mang and development requirements of each plan or agreement and this lease
seem not rennet"or wine dunng the lite of soon plan or agreement.In the event that Na land described above or any part dead shad hereafter be opened under
any such coopoNye or unit plan Of development or operation whereby the preen:Om therefrom Is allocated to dtaeyt Odeon of the land revered by said plan,then
the poduenm adoc eted to any particular tract of lend shad.far the purpose of computing the royamea to be paid hereunder to law',be regarded es ho ng been
produced horn Ire parch er bat of land to which it is allocated and sot to tiny other had of end,and ere royalty peyms*s to be made hereunder to lessor shed be
based upon Production only as so allocated.
12.If the estate of at ei parr hereto Is assigned or sublet,and the plwhge of sobering or subatdng in whole or In pail la apresay shooed.the magmas and Implied
movaniere hereof she Oland to the subs,successors and assigns of the parlor,and in the event of an assignment or subletting by lessee,lose sae be
reined and dadtarged es to the leaeaiold rights so assigned or sublet horn any lately to Maw thereafter accnilrg upon any of the covenants or contingent of this
lease.either expense or implied.No cringe In Ownership of the land.royalties,of other payment,however accomplished,shag operate to enlarge the obligations or
diminish the more of lessee or require aepsrete rnaeeuring r Installation of separate tardy by lessee.Notaithpt nding any actual or oouseldiee knewledge of or notice
to lessee,no change In ownership is said Wd Or of the light to redeye cycles or offer payments hereunder,or of any Interest therein,whetter by mason Od death,
conveyance or any other maser,seed be binding on leases(weed at tessera option in any particular case)until one handed twenty(120)dale alter lessee Ms been
furnished written noon Mend,and the supporting iMan50m baehielter referred to by the party dalndng as a resist of such liege to awnentep or harlot.Such
notice shed be supported by ori¢nef and canted copies of all documents and other instrument or proceedings necessary in lessee's opinion in establish the oeNran4
of the claiming party.
13.In the interest of conservslion,the protection of reasrvom preeeurs and recovery or Me greatest Mans yield of re an der gas,lessee fish bays the fight to
combine the leased prendees WM other premises in the scree general area for the purpose or operating and maintaining represawing and recycling halides,and for
such purr rney locate such trollies,Including g input wells,upon leaved demises,and no royeies one be walla hereunder upon any gas used for rapraawrbg and
recycling°peratbre Oenefieri the leased premises.
14.If lessor,during the Omani term vitas lease,receives a bona rids offer from a dlbd party to purchase horn lessor a lean covering any or en of the substances
crewed by tat lease and severing en or a cannon of the kind described Wren.with such lease m become effective upon siphon d the Wee.ankh lasso k Wtakg to
accept hen the offering party,lessor homey agrees to molly lassos In writing of said altar immediately.including In the notice the name and address of the offeror,the
price offered and all other peldnent to ms end conditions of the offer.Lessee,fora period of fifteen(11)days otter the receipt of the none,sane hew the prior and
pretend right and°pion to purchase the lease or part thereof or Mast Osretn covered by Me offer et the price and on the terms and oondlors opened In the offer.
All otters made up to and teduring to last day of the primary tern dank apse shall be subject to the tams and carnations d togs paragraph 14.Should lessee elect to
panne the lease pursuant to the terns heleot It shat so malty lessor in wrong by men,telefax,or telegram pear to expiration of said them (161 day period.Leewe
shall promptly thereafter*srdeh to land the new lease kr eaecutlon by lessor along with lessee's sight*net payable to bear in payment of the soothed anoint as
mrtaideration for to new lean,such draft being subject to approval of dee omen to the terns thereof.Upon receipt thereof.lessor Mal promptly execute sold lase
rani rebore same along web lay draft through lease's bank of record Tor payment
taints event lessor coraiden that teases has nor oompeed with at its obligations hereunder,ether express or Implied,lessor shall racing testes In wwtrg,seeing
Out spacikaiy In what respects tense has breached this llrase,tsetse shall then have shay(et)days altar receipt of said nice Within wtddi to meet or co thence to
meet as or any pat et the breaches alleged by lessor.The sane of sale notice Mat be precedent to the bnngfng of any stet by leant on saki law for any muse,
and no such anon shall be brought unlit the lapse of ably(to)days alter serve of cud'hobo on lessee.Netter the service Of Saki matzos nor the doing of any lace by
keno awed to meet at or arty of the Gaged broaden shed be deemed an adrNaaion or prsawmpirt that lessee has failed to perform al is°begedars hereurefe.This
lase shall never be fodeitMM Cr canceled for tenure to perform id wino or h pert any offended coweems,Oenenn,or atpuleaons unit a judicial deknkstm le
made that sure failure ache end knee fork within a reasonable time to WON any such Oovena te.oonditlos,or atputefxns
le Al express and implied covenants of this lease shell be subject to al tederat and state,county or municipal bas.eseaitive orders,riles and nguteaas,and
lessee's dbhpdions and covenants hereunder,whetter sigma or implied,Mel be suspended al the time or from Imo to time as=caw=with etch dbegatdns and
Montana is prevented or Modeled by or re in conflict with federal,late,county,or munklpal laws,rules regrilalbns or executive orders awarkd is Ode by Or bide
public authority claimhig judsdidion w Ad of Ood.adverse held.water,or market conditions,irately to obtain ntetenal$In the open mereet or eaneporlelbn thereof,
users,strikes,lockouts,rids,or other oondaons or dramttanoes not wholly connoted by lessen and this lees shall not be lemereed In whole or in part nor lessee
held liable in damages for thine to comply with any such obtisatona or covenants if compliance therewith is prevented or hindered by or is in correct with any of the
cent about slated,shall during
hd to thee printery tam prevented
ef v addax conducting dating or rewadcieg operations during the primary arm d this ken,under Ma
e.
17.tenor hereby waran s and egress to defend the anode lands described above and agrees that 0e lessee,at Its opus n,Nell haw the right at try Pena to pay
for beer,any mortgage,was or other Lase easing,levied or assessed on er agetnet rise above described lames in the event of default d payment by lessor end he
eubrtgat d to the edits of the holder Oared.and lessor hereby agrees that any such payments made by teases fel the lessor may be deducted horn any amowhe of
money whin may become due the lass under the terns of this kite,
19.This Thine and OA lb terns,mndtons,end stipulations shall extend to and be binding on all successors in intend,In while cc In part,deed lessor or lessee.
1e.Wti reaped to and for the purpose of We lease,aura and each d them if there to more than one.hereby re ease end weeny the not of homawd.
WHEREOF wtlnvw our hands as el the day and year I net above eaten
vL r'• 9 1.:.,C,4,P1 tip 7,74.
Jackie Lee Flaeue,afk/a Jackie L.Fiscus, i ,a/k/a Shirley A.Fiscus
alk/a Jackie Fiscus
STATE at COLORADO _ Acmuowceodeeaerrr-rxowfovu.
COMFY of
BEFORE me,nits undersigned,a Notary Pub O In and for add Court'and gets.on Mini rS day or [;.,�.n.ti.Q .70 10 ,
pereaeay appeared Ikeda Lot Fire.slide aegis'.Fhegs,Mae.adds fiscal end Marley Pans,all/a Shirley A.Aida,honied ad Mir,as islets wean ,It
no trrasvnto be the kankai pesos t ,daotbed In and who mould the ckirin and foregoing Inatome*at weekend edmowledgsdto me en be are sae
ihulyecacifcd di.same as theft' free ant nanny ant and deed,torment the relay are waivrd the right et homestead,endtn Ns MEW Wed therein
hi*IT etUS wuNEREOP,then oens t eumo eel my hand and Won cry Adana seal the day aid year tar anon written. l
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3692390 06111/2010 10:331! Wald County,CO
°Fat. 2 of 2 R 11.00 I) 0.00 Steve Moreno Clerk&Recorder
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Carly Koppes, Clerk and Recorder, Weld Count1■y■, CO
.III l �trl�'1�I� �L'� ���{,h; l�l ��'y-I.1■l��fYrl�l 11111
WELD COUNTY LARGE-TRACT OIL AND GAS LEASE "
Containing 80.0 acres, more or less:
Containing 80.0 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 26th day of January , 2015 , 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:
Contex Energy Company
621 17th Street, Suite 1020
Denver,CO 80293
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 filing fee in the amount of $10.00, plus a bonus consideration of
$ 600.00 per mineral acre,fixed by Lessor as an additional consideration for the granting of this
lease, and Lessee agrees to pay an annual rental of$ 200.00 , computed at the rate of$2.50, per
mineral acre or fraction thereof per year,and the following consideration:
WHEREAS, all the requirements relative to said application have been duly complied with and said
application 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 lines, tanks and fixtures 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
t for oil and gas, the following described land situated in the County of Weld, State of Colorado, and more
,;$1i particularly described as follows:
33 SECTION TOWNSHIP RANGE
m= 8 1ON 57W
u�� DESCRIPTION OF LAND(attach exhibit if additional space is required)
111
3_
co 0
LL v
r'oc� E1/2 NE1/4
0)0.
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NV`
4 u TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee
c N o' until the hour of twelve o'clock noon on the 26th day of January , 2018 , 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
co = is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and
7:Pm II conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is
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Carly Koppes, Clerk and Recorder, Weld County, COIIIR C�CC u
1 I I
ikkiNt-11 1 1 II I I I (Revised 0612014)
Large-Tract Oil and Gas Lease
Page 2
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.
In consideration of the premises,the parties covenant and agree as follows:
1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
paragraph hereof, Lessee shall pay to Lessor the sum of Two and 50/100 Dollars ($2.50) per
acre for the land covered hereby as delayed rental for the term of the extension. Rentals set at
the time of established production shall be paid during the remaining life of this lease,annually, in
advance,on or before each anniversary date hereof. There shall be no refund of unused rental.
2. ROYALTY PROVISIONS:
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
o ra 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
m a Paragraph 2 are to be fully effective and enforceable.
rlB3�
wG� B. Royalty Payment on Products: On products, Lessee shall pay Lessor a royalty payment of
o v twenty-five percent(25%)of the gross market value or proceeds of sale thereof,whichever is
a)u-o higher.
• Et
C. Royalty Payment on Residue Gas: On residue gas or gas remaining after separation,
e a extraction or processing operations, Lessee shall pay Lessor twenty-five percent(25%)of the
e m proceeds of sale or of the market value thereof,whichever is higher.
No
D. Royalty Payment on Oil: At the option of Lessor, and with sixty (60)days' notice to Lessee,
:°m Lessor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to
N N o ti Lessor on the leased land, free of cost or deduction, into the pipelines or storage tanks
co 1,a� 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
rS sixty (60) days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in
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i Revised 0612014
Large-Tract Oil and Gas Lease
Page 3
cash, Lessee shall pay Lessor for oil produced and saved from the leased land, twenty-five
percent(25%)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
rentals herein provided shall bepaid to Lessor only in theportion which its interest e est bears to
the whole and undivided fee, but no refund of any bonus consideration shall be made b
by
Lessor hereunder.
F. Timing 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 Lessors 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 Pay 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
8 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
C�
gas purchase contract makes payment to Lessee by virtue of such purchaser's failure to take
� delivery do_..�e., of such minimum volume or quantity of aas, then Lessor shall be entitled to
.T°=V twenty-five percent (25%) of all such sums paid to Lessee or producer under the "pay"
3
r, • 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
0 purchaser"makes up"such gas within the period called for in the gas contract and Lessee is
mLL o---
N w 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
E2* 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
da Lessee of the duty to make shut-in royalty payments if Lessee desires to continue this Lease,
m but such "take or pay" royalty payments shall be applied as a credit against any shut-in
iii royalty obligation of the Lessee. Lessor shall be a third-party beneficiary of any gas purchase
co aM contract and/or transportation agreement entered into between Lessee and any purchaser
:'°c ~ and/or transporter of Lessor's gas, irrespective of any provision of said contracts to the
°p!' contrary, and such gas purchase contract and/or transportation agreement will expressly so
co
c.ro" provide. Further, Lessor shall be entitled to twenty-five percent (25%) of the value of any
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Large-Tract Oil and Gas Lease
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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 Liquid 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.
1. 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. Effect of Division Order: 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
o whether or not such gas is produced to the credit of Lessee or sold under a contract executed
0 y 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
m a. gas.
M •3�
69
m = 3. LE=SSOR'S ACCESS TO LEASED PROPERTY AND RECORDS
Gva�
.yli o A. Records Generally: Lessee agrees to keep and to have in its possession complete and
N � accurate books and records showing the production and disposition of any and all
N a substances produced on the leased land and to permit Lessor, at all reasonable hours, to
a m 1- examine the same, or to furnish copies of same to Lessor upon request along with
v purchaser's support documentation. Lessor will not be unreasonable with requests. All said
m 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.
�
co m a 1
• NY ti B. Access to Premises: Lessor shall have free access,at all times,to all wells, tanks,and other
equipment on the Leased Premises, including drilling wells, and Lessee agrees to furnish
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Carly Koppes, Clerk and Recorder, Weld ;ounty,l C011 `I II i1 Revised 0612014
II I 1 I /
I r
Large-Tract Oil and Gas Lease
Page 5
Lessor, or Lessor's nominee, currently and promptly, upon written request, with full well
information including cores, cuttings, samples, logs (including Schiumberger 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 Lessor's nominee shall be furnished 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,
ca, State or Federal governmental 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
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 furnish 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 wells on the
Ai Leased Premises, and all other reports which pertain to the drilling, completing or operating
0 of the wells 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.
S Lessee agrees that it will 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)
,i m w:- years from the effective date of such sales contract unless such contract has adequate
m 3 provisions for redetermination of price at intervals of no less frequency than one (1) year to
,..`•Aa, ensure that production from this Lease is not being sold for less than the then current market
o ` value.
Na8re w
CC CSI
D. Lessee to Advise Regarding Well Status: Lessee shall advise Lessor, in writing, of the
0E-2 location of all wells drilled upon the Leased Premises on or before thirty (30) days prior to
ii
IT
t commencement of operations, and shall advise Lessor, in writing, the date of completion
a v v z and/or abandonment of each well drilled within thirty (30) days after completion or
G°M abandonment.up corn Q� 4. MEASUREMENTS: All production shall be accurately measured using standards established by
N aY�~ the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all
co arm measuring devices shall be tamper proof as nearly as possible. Oil royalties due within the terms
�m�� 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.
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Carly oppas lerk and Recorder, Weld County, CO
) 1111
a li ) ) i Revised 06/2014
Large-Tract Oil and Gas Lease
Page 6
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.
6. PENALTIES: A penalty shall be imposed for, but not limited to, fate 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.
7. LAW: The terms and conditions of this lease shall be performed 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 shall result 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
- E suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of
all its terms expressed or implied. In no case shall any surrender be effective until Lessee shall
o x have made full provision for conservation of the leased products and protection of the surface
rights of the leased land.
g 9. ASSIGNMENTS:
0
U y
es.P-a A. Fee for Assignments: Lessee, upon payment of a $100.00 fee and prior written consent of
M •3ac 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
e a)-O K approval by Lessor of assignment of this lease, Lessee(assignor) shall not be relieved of its
N LL m obligations under the terms and conditions herein. An assignment shall not extend the term
of this lease.
O1a '-r. B. Partial Assignment: if any assignment of a portion of the land covered hereby shall be
v — approved, a new lease shall be issued to the assignee covering the assigned land, containing
..m
N 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
CO m a_ as to that portion so assigned.
iitN o
000 1,12, C. Lessee to Notify: Lessee shall notify Lessor of all assignments of undivided percentage or
°0 = 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
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i5 , ` i Revised 06/2014
Large-Tract Oil and Gas Lease
Page 7
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.
10. OVERRIDING ROYALTY: Any and all reservations or assignments or overriding royalties shall
be subject to approval by Lessor. The total of said overriding royalties shall not exceed
five percent (5%), including any overriding royalty 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 Lessors 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.
0
---
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
m3 jurisdiction. Such pooling shall be accomplished or terminated by filing of record and with the
•
�`►m Colorado Oil and Gas Conservation Commission a declaration of pooling, or declaration of
•L termination of pooling, and by mailing or tendering a copy to Lessor. Drilling or reworking
operations upon or production from any part of such spacing unit shall be considered for all
• N -=al 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
vim pc spacing unit bears to the total acreage in said spacing unit.
arri.1 m+▪ - 14. UNITIZATION—COMMUNITIZATION: In the event Lessor permits the land herein leased to be
included within a comm unitization or unitization agreement, the terms of this lease may be
to
rte-' deemed to be modified to conform to such agreement. When only a portion of the land under this
ama_ lease is committed by an agreement, Lessor may segregate the land and issue a separate lease
N�Y for each portion not committed thereunder; the term of such separate lease shall be limited as to
00^' the original term of this lease. The terms of the lease on that portion remaining in the unit shall
gr m ram be deemed to be modified to conform 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
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el` 'i Revised 06/2014
Large-Tract Oil and Gas Lease
Page 8
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,
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 in addition to the annual
rental. 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, including permanent installations,
shall be in compliance with all Colorado Oil 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.
- E 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 commencing 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, livestock, growing
-O t crops, water wells, reservoirs,or improvements caused by Lessee's operations on said land. No
MC0 operations shall be commenced on the land hereinabove described unless and until Lessee shall
have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure
o 409, the payment for such damages as may be caused by Lessee's operations on said land and to
v assure compliance with all the terms and provisions of this lease, the laws of the State of
N�° Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for
g the life of production of any well.
0a
d a 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
m" payments and obligations currently due Lessor under the terms of this lease shall have been paid
;,� or satisfied. Any machinery, equipment or fixtures left on this land for a period of more than
co NY` six(6)months after the expiration hereof,shall automatically become the property of Lessor.
°0~' 21. OTHER DISCOVERY: Should Lessee discover any valuable products other than oil and gas, on
er
m 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.
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Carly Koppes, Clerk and Recorder, Weld County CO
1 •
II I Revised 06/2014
Large-Tract Oil and Gas Lease
Page 9
22. WATER: 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.
23. DEFAULT: 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.
-a
Y B. Extension Payment: The Lessee shall pay to the Lessor the sum of one-third of the original
rft bonus.
C. Delay Rental: The Lessee must pay to the Lessor the sum of Two and 50/100 Dollars
($2.50)per acre leased as delayed rental for the term of the extension.
• •
if, D. No Change in Royalty: The royalty will remain the same.
m
0 01-0
U.L-
ip 25. HOLD HARMLESS: Lessee shall indemnify Lessor against all liability and loss, and against all
N 1 CC
- claims and actions, including the defense of such claims or actions, based upon, or arising out of,
a E C, damage or injury, including death, to persons or property caused by, or sustained in connection
w a." with, operations on this leased land or by conditions created thereby, or based upon any violation
molt of any statute,ordinance, or regulation.
Nv�
a 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
NN Y 7 paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves,
co in which event 50% of such specific award(s) shall be paid to Lessor in lieu of royalty lost by
r,�, virtue of the condemnation. Improvements shall be removed by Lessee per terms in the
425
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.
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,, I III Revised 06/2014
Large-Tract Oil an
d a d Gas Lease
Page 10
27. ERRORS: Every effort is Lessor
made by to avoid errors in all procedures including, but not
9
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 alter 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.
29. DEFINITIONS: For purposs3 of this Le ass,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.
2 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.
o
D. "Costs" and/or "Expenses" shall mean all costs of gathering, production, transportation,
m� - treating,compression, dehydration, processing, marketing, trucking or other expense, directly
7,1)G-42
or indirectly incurred by Lessee, whether as a direct charge or a reduced price or otherwise,
f,� including fuel use attributable to any of the services listed above. "Costs` or 'Expenses" also
° f� include depreciation, construction, repair, renovation or operation of any pipeline, plant, or
N" _ other facilities or equipment used in connection with the treating, separation, extraction,
gathering, processing, refining, transporting, manufacturing or marketing of hydrocarbons
ui d a produced from the Leased Premises or lands pooled therewith.
rom Y 5.-
0-'1'a)3 E. "Gas"as used herein shall mean all gases (combustible and noncombustible) including, but
oo not limited to,all gaseous hydrocarbons,gaseous compounds, carbon dioxide,and helium.
p
ANY M F. "Oil and gas"as used herein shall include all substances produced as by-products therewith,
nu
including, but not limited to, sulfur.
ao��=
�m�� G. "Paying quantities"as used herein shall mean and refer to quantities of oil and gas or of
either of them sufficient to pay for the current cost of producing same.
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Carly Koppes: Clerk and Recorder. Weld County, CO
Revised 06/2014
Large-Tract Oil and Gas Lease
Page 11
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 title to the subject lands.
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 government or legal body or any representative of any such government 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-to-day 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 furnish 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 drill sites
on the Leased Premises.
B.AII 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 term of the lease.Therefore, if Lessee
causes an abstract of title to be prepared covering the property herein leased, or any portion
thereof or if 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 furnish Lessor a copy
thereofwithin two (2) weeks of Lessee's receipt thereof. Lessor agrees that neither Lessee
nor the attorney or firm of attorneys 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.
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Carly Koppes. Clerk and Recorder Weld County, CO
II
„ II II I
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Carly Koppes, Clerk and Recorder, Weld County, CO
II i i Revised 06/2014
Large-Tract Oil and Gas Lease
Page 12
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.
!� 1E.La� LESSOR:
ATTEST: V• ' r , BOARD OF COUNTY COMMISSIONERS
Weld C. n�lerk to the Boa WELD COUNTY, COLO DO
By: / �.! .''r 1 B . 4.4
Deputy Clerk t e :oard `� hair, Board of C unty Comm sioners
�''••,. ,JAN 2 6 2ei15
LESSEE:
Contex Energy Company
Company Name lam,
Ignature
Heather Sondergaard,Vice President
l J Printed Name and Title
STATE OF Colt)r'aclo )
) ss
COUNTY OF\‘' (?n vi--'r )
The foregoing instrument was acknowledged before me this&-,)d day offin La,-v
20 I S , by 1-4 Pa l cr c,ui?Gf 1-5-7;G�,-'!
•rss my hand and official see /�'�
�� i DIONNE E ERHARD
J��'�1?�1 /-' --.-- ---21C----/ NOTARY PUBLIC
fN. STATE OF COLORADO
Otary Public NOTARY ID 0 20094000517
Mr COMMISSION EXPIRES JANUARY 22,2017
My Commission Expires:1/„?,-/�C%/1
LESSEE: (second signature if applicable)
Company Name
Signature
Printed Name and Title
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Carly
ulKoppess, IClerk and uRecorder, Weld County, C04 W
es: 12 of 13
02/$04833/2015 12:009 PM P Fee:$0.00 ,III NPAI�yl'y�7rIK+�yl LEAI�IIAIKIM I I ��it iWi ,I II
Carly Kop s Clek and RecorderI: Weld County. CO
' Itl id, I Ili I I I I Revised 06/2014
cob/5-Oo?7.2.
Large-Tract Oil and Gas Lease
Page 13
STATE OF
ss
COUNTY OF
The foregoing instrument was acknowledged before me this day of
20 , by
Witness my hand and official seal.
Notary Public
My Commission Expires:
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Carly Kopp Cler d Record r, Weld C ty, CO
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Carly Koppes, Clerk and Recorder, Weld County, CO
VIII I rdltiP WICPRZliNikiV NO N IN i III II
Revised 06/2014
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Carly Koppes, Clark and Recorder, Weld County, CO
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,
Esther Gesick
From: Esther Gesick
Sent: Tuesday, January 26, 2016 3:17 PM
To: Bob Choate
Cc: Karla Ford; Esther Gesick
Subject: FW: Correcting Oil and Gas Ownership/Lease
Attachments: STIPULATION OF INTERESTS REGARDING MINERALS (clean copy).docx
Bob,
Please verify signature status. We will continue to hold in Agenda Pending tray until further direction is received from
you.
Thanks!
Esther E. Gesick
Clerk to the Board
1150 O Street/P.O. Box 758/Greeley, CO 80632
tel: (970)336-7215 X4226
ti r
`P!
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.
From: Bob Choate
Sent: Wednesday, December 23, 2015 3:13 PM
To: Commissioners<COMMISSIONERS@co.weld.co.us>
Cc: Bruce Barker<bbarker@co.weld.co.us>; Don Warden <dwarden@co.weld.co.us>; Esther Gesick
<egesick@co.weld.co.us>
Subject: Correcting Oil and Gas Ownership/Lease
Commissioners,
Bruce and I have been working with attorney Tom Grant to correct the ownership of some mineral interests the County
has currently leased to Contex Energy. When doing title research, Contex (or its predecessor) incorrectly determined
that the County owned 80 mineral acres on a parcel,when in fact the County only owns 60 mineral acres.Tom Grant
represents the "heirs of Charles Wheeler", who actually own the other 20 acres. I've independently researched the title
work, and I agree with this conclusion. (The attached document has much more specific information).
In order to fix this error,Tom wants to have all of the owners, including the County, sign a stipulation as to ownership
interests.We have negotiated a stipulation (attached) in which everyone agrees that the County has 60 acres and his
clients have 20 acres, but that his clients waive any right to previously paid compensation from the Contex agreement. If
approved, the County would agree to ask Contex to amend the lease to give Tom's clients any future royalties from their
20 mineral acres. I don't believe this is a producing property yet, so the only payments made so far are bonus payments.
Bruce and I recommend you approve this stipulation.Tom Grant would like to have it executed by the end of the year,
and so I ask that you authorize me to put this on your agenda for next Wednesday December 30th. Let me know if you
would like to discuss.
1
Merry Christmas!
Bob Choate
Assistant Weld County Attorney
1150 "O" Street; P.O. Box 758
Greeley, Colorado 80632
Tel: 970-336-7235
Fax: 970-352-0242
Email: bchoate@weldgov.com
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2
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