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HomeMy WebLinkAbout1.02 Mineral LeaseFiled . for record July 12, 1960 at • NC Form L B. a8-tz Reception p210 q�r� CsSSPeeo�:1 :'ft�s0—UE PinC.ctl Kan., Okla. '&. col;,. VIL AND GAS LEASE Recorder 23 THIS 'AGREEMENT, Entered into this the 5 between_ F. D. Dashnerya single man Carbondale, Colorado day of May hereinafter called lessor, and Francis W. Christensen, Glenwood Springs, Colorado hereinafter called lessee, does witness: 1. That lessor. for and In consideration of the sum of — —Ten and more motions (4 10.00— —. - In hand paid, and 0f the covenants and agreements hereinafter contained to be performed by the lessee, has this day granted and leased and hereby grants, leases and lets tanks, the lessee for the purpose Of mining and operating for and producing oil and gas, casinghead gas and casinghead gasoline, laying pipe Indicting lines, H 8 g powers. stations, telephone lines and other structures thereon 10 produce, save, take care of and manufacture all of ouch substances, and for housing and boarding employees, the following described tract Of land In County Cplorado to -wit• Garfield Twp. 7 South, RRe. 87 West, 6th Vii. Sec. 31i Lots 2 to 7inclusive, Lots 12, 13, 18, 19, part of Lot 1-11 and of NE SWy described in Book 217 at Page 312, Garfield County records. in Sectio',. )CX , Township XX Range ' XX and containing 274.86 anmore or` less. 2, This lease shall remain In force for a term of ten- HUI $00 and as long thereafter as .oil, gas, casinghead gas,. casinghead gasoline or 005 of them la produced f iQ e / • 2, The lessee hall deliver to thecredit f theles s royalty, free of cost, in the pipe line to which lessee may eminent its wells the equalone-eighth 00,1 of 011 011 produced and saved f the leased premises, r at the lessee's option, mai pay t thelessor for such one-eighth royalty the market price for 011 grade and gravity prevailing the day such oil is run into the pipe line o into storage tanks ' 4, The lessee shall pay lessor, royalty, one-eighth ofthe proCeeds from the sale of the gas, as such, for gas from wells where gas only U round, and where not sold shall pay Fifty (45000) Dollars per annum as royalty from each such well, and while such royalty 1s so paid Such well .shall be held to be a producing well under paragraph numbered two hereof. The lessor to have: gas free of charge from any gas well on the leased premises for stoves and inside ghts In the principal dwelling house on said land by making his own connections with the well, the use of said gas to be at the lessor's sole risk and ex- pense. The lessee shall pay to lessor for gas produced from any ail well and used by the lessee for the manufacture of gasoline orany they alty, one-eighth of the market value of such gas at the mouth of the well If said gas Is sold by the lessee, then a royalty one-eighth of the proceedsoof thesale thereof. 6, If operations for the drilling of a well for oil or gas are t commenced on said land on or before one year from this date, this lease shall terminate as to both parties, Unless the lessee shall, or before one year from this date, pay or tender to the lessor or for the lessor's credit in the First National Rankat Glenwood Springs, Colorado or Its successors, which bank and Its successors are the lessor's agent and shall continue as the depository of any and all sums payable underthis lease, -re- gardless of changes of ownership in said landor in the oil and gas, or In the rentals to accrue thereunder, the sum of Two Hundred Seventy - Four anal_ 86/100 • Dollars (g 274.86- - -) which shall operate as rental.and cover the privilege of deferring the commencement of drilling Operations for a period of one year. In Like manner and upon like paynierits or tenders, the commencement of drilling operations may be further deferred for like periods successively. All payments or tenders may be made by check or draft of lessee or any assignee thereof, mailed 'or delivered on or before the rental paying date. Notwithstanding the death of the lessor, or his successdr In Interest, the payment or tender of rentals in the manner provided above shall be binding on the heirs, devisees, executors, andadministrators of such person. 8. It of any time prior to the dfseovery of oil of gas on this land and during the term of this lease, the lessee shalt drilla dry hole, or holes, on this land, this lease shall not terminate, provided operations for the drilling of a well shall be commenced within twelve months from the expiration of the last rental period for which rental has been paid. or provided that within said period the. le55ee begins or resumes the payment of rentals in them and amount herein above provided; and In this event the preceding paragraphs hereof governing the payment of ra rentals and the m and effect thereofshall continue to force. 7, In c se said lessor owns a less interest 1n the above described land than the tire and undivided fee simple estate therein, then the royalties and rentals herein provided for shall be paid the said lessor only In the proportion which his interest bears to the whole and undivided fee. 8. The lessee shall have the right to use free of cost, gas, oil and water found on said land for its operations thereon, except water from the wells of the lessor. When required by lessor, the lessee shall bury .pipe lines below plow depth and shall pay for damage caused by its operations to growing crops on said land, No well shall be drilled nearer than 200 feet to the house or barn now on said premises without written consent of the .lessor. Lessee. shall have the right at any• time during Or. atter. the expiration of this lease to remove all machinery, fixtures, houses, buildings and other struetures placed on said premises, Including the right to draw and remove all casing. 9. If the estate Of either party hereto is assigned (and the privilege Of assigning in whole or In part is expressly allowed), the covenants hereof shall extend to the heirs, executors, administrators, Successors and assigns, but no change of ownership in the land or in the rentals or royalties shall be binding n the leesoe until after notice to the .lessee and it has .been furnished with the written transfer or assignment or certified copy thereof, 0n the event this Lease shall be assigned a5 to a part Or a5 to parts of the above described lands, and the holder or of any such part or parts shall Sall or make default in the payment of the proportionate part of the rent due from him or them, such default shall not operate to defeat or affect this (ease in so Sar a5 it 'covers part or parts of said land upon which the said lessee or ny assignee hereof Shall make due payment of said rentals. Ifi at writing, time there be as able 007 0s four parties entitled to rentals or royalties, lessee may withhold payments thereof unless and until all parties designate,n a instru- ment to be filed with the lessee. a common agent to receive' all payments due hereunder, and to execute division and transfer orders an behalf of said parties, and their respective successors in title. 10. Lessor hereby warrants and agrees to defend the title to the land herein described and agrees that tho lessee, at its option, may pay and discharge any taxes, mortgages, or other liens existing, levied, or assessed on or against the above described lands and, In event It exercises such option, it shall be subrogated to the rights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other lien, any royalty or rentals accruing hereunder. 11. Notwithstanding anything in this lease contained to the contrary,it 1s expressly agreed that if lessee shall commence drilling operations at any time while this lease Is 10 force, this lease shall remain in force and Its .term shall continue so long as such operations are prosecuted and, If production results therefrom, then as long as production continues. 12, If within the primary term of this lease production on the leased premisesshall cease from any cause, this lease shall not terminate provided opera- tions for the drilling o/ a well shall be commenced before or on the next ens Ing rental paying date; sr, provided lessee begins or resumes the. payment f rentals In the manner and amount hereinbefore provided. If, after the expiration of the primary term of this lease, production on the leased premises shall ease from. any cause, this lease shall not terminate provided lessee resumes operations for drilling a well within sixty (601 days fromsuch cessation, and this lease shall remain In force during the prosecution Of such operations and, if production results therefrom, then as long as production continues. 13. Lessee may at any time and from time to time surrender this lease as to any part or parts of the leased premises by delivering or mailing a. release thereof to the lessor, or by placing a release thereof of record In the proper county. 14. This lease and all Its terms„ conditions, and stipulations shall extend to and be binding on all successors of said lessor or lessee. 15. This lease shall not be' terminated, In whole or in part, .nor shall lessee be held ]able In damages,for failure to comply with the expresslin- Plied 'covenants hereof, If compliance therewith is prevented by, or 1f such failure is the re sult of, any Federal or State laws, executive orders,1 or regulations. I1, at the end Of the primary term hereof, such term has not been extended byproduction or drilling as in this lease provided, and lessee, by reason of any of the above recited causes, is unable t0 drill a well on the leased premises for oil or gas, the primary term and the rental provision hereof shall be extended automatically from year to year until the first anniversary hereof occurring ninety (00) or more days following the removal of such delaying cause. During any period that lessee is unable to produce and'or market any products from the leased premises by reason of any of the above recited causes, this lease shall remain n In full force and effect. 16. Lessee Is hereby given theright at its option, at any time and from time to time, to pool or unitize all or any part or parts of the above de- scribed land with other land lease, or leases In the immediate vicinity thereof, Such pooling to be into units not exceeding the minimum .size tract on which well may be drilled under laws, rules, or regulations in force at the time of such pooling or unitization: provided. however, that such units may exceed Such minimum by not re than ten acres 11 such excess is necessary 1n order to conform to ownership subdivisions or lease lines. Lessee shall exercise said option, as to each desired unit, by executing ands recording an instrument identifying the unitized area. Any well drilled or operations conducted on any Part of each such unit shall be considered a well drilled or operations conducted under this lease, and there shagbeallocated to the portion of the above described land Included In any such unit such proportion of the actual production from all wells on such unit as lessor's Interest, if any, in such portion, computed o an acreage basis, bears to the entire acreage of such unit. And, It is understood and agreed that the production So allocated hall boas considered for all purposes, Including the payment or delivery of royalty, to be the entire production from the portion of the above described land In eluded In such unit In the same manner as though produced from the above described Land under the terms of this lease, IN WITNESS WHEREOF, we sign the day and year first above written. o /G v� ttshner Book 32$ 17. "Notwithstanding anything in this lease to the contrary Page 234 this lease shall cease and terminate three years from its date unless there shall be commenced operations for the dtilling of a well for oil and gas at a location within 4 miles from the corner common to Townships 7 and 8 South, Ranges 87 and 88 West of the 6th P.M." 18. "If Lessee hag encountered water in a well which it has determined to plug and abandon, Legsee shall notify Lessor at the address shown in this lease, who, within twenty-four (24) hours thereafter, shall notify Lessee whether he elects to take over said well. If he does so elect he shall pay Lessee the reasonable salvage value of the casing in the well and execute proper instruments indemnifying Lessee against all liabilities which may there- after arise relative to said well including the plugging and abandonment thereof. If he does not so elect or fails to timely make any election this section shall terminate and be of no further force or effect." SIGNED FOR IDE IFICAT : STATE OF Colorado } ss. ACKNOWLEDGMENT FOR INDIVIDUAL (Kans., Okla., and Colo.) Garfield 11 undersigned, a Notary Public, within and for said county and state, on this , 19 60 , personally appeared 5th 1- • - n: to be the identical person_who executed the within and foregoing instrument and acknowledged to me ecuted the same as his free and voluntary act and derrd for the uses and purposes therein set forth. HEREOF, I have hereunto set my hand and official seal th9zday and year last above written. July 12, 1960 Notary Public. }ss. ACKNOWLEDGMENT FOR INDIVIDUAL (Kans., Okla., and Colo.) Before me, the undersigned, a Notary Public, within and for said county and state on this day of 19 , personally appeared and to me personally known to be the identical person_who executed the within and foregoing instrument and acknowledged to me hat executed the same as free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my handand official seal the day and year last above written. y commission expires ATE OF OVNTP OF } ss. On this day of nd for the county and state aforesaid, personally appeared o me personally known to be the identical person who signed the name of the maker thereof to the within and foregoing strument as its_._.— President and ackhowledged to me that _executed the same as free and luntary act anddeed, and as the free and voluntary act, and deed of said corporation, for the uses and purposes therein set forth. Given under my hand and seal the day and year last above written. y commission expires Notary Public. ACKNOWLEDGMENT FOR CORPORATION A D 19 before me, the undersigned, a Notary Public O 00 P'. 3 9 H No. of Acre Notary Public. 7 a P. 0. Box 569 •