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Home My WebLink About4.0 CorrespondenceBonneville Fuels Corporation A Subsidiary of Bonneville Pacific Corporation August 26, 1988 Garfield County Planning Department Garfield County Courthouse 109 Eighth Street, Suite 303 Glenwood Springs, co 81601 Ladies and Gentlemen: Re: Special Use Permit ft24-14-W Mead well Rulison Field Area Garfield County, co We forward herewith, in the Garfield County captioned. a copy of the State Permit for your use permit application relative to the Please let us know what else you may need in this regard. BHW/ds encl. Very truly yours, 1600 Broadway I Suite 1123 I Denver, Colorado 80202 J 303-863-1555 I Facsimile 303-863-1558 ·-( .. . ' ... - STATE OF COLORADO OOCCFOAMI ..... tOIM 01 .ND GAS CONSERVATION COM. .iSION • DlPAll)IEffT or NATillAL u.so11Rcu APPLICATION .\. U.ASf. llt:SICONA110N ANO ~t'.llAI. NO. . N/A .. FOR PERMIT TO DRILL, DEEPEN, OR RE:ENTER AND OPERATE . •-11" INDIAN, Al.I.OTT£[ OR llUBf. NAMt: , .. nn or woa1 DRILL iii. DEEPEND RE·ENTER 0 NIA I. UNIT AGREEMENT NAME 1.. rtn orw1LL .. N/A OIL 0 w...e SlNOL! 0 MllLTIPU m wr.u OTHll ION£ ZONl I. rAllM OR Lu.St NAM[ •• . S. PHONE NO • Mead OPERATOR:, Bonneville fuels Corporation ( 303 ) I.WELL NO. ADDRESS: 1600 Broadway, Suite "¥"¥7, lllO 863-1555 24-14-W CITY! Denver STATE: Colorado ZIP: 80202 10. nELD ANO POOL, OR WILDCAT t. LOCATION OF WEU (~ localiun dn~ in l«'Ufdauc:c-wirh any St:11r rn.auirnnC'tMl.I Rulison At •u.U.-. ~(FWL, ~ FSL IJ, Q.Ta. Q.Ta. , • .._ T.I. AND MEIUOonn )J-' (6 3' I At l'"opu><d Pn.d. .. I 'Z. I . . -SV-~ S l ;... \ / as above SW/4SW/4 Sec. 24, T6S-R ... 015TANCf. IF UJ.S ~·rut.ft IOO n. now ANY OCCUPflO ILDC. PUILJC J.OAD. AaOVE ClOUHD unun UNE oa 1i.cou~ MIU.OAD{SHOW IOOTA.CU ON WI.VD PU1) Garf.leld U. DISTANCE fllOM PROPOSED o.uCATION TO NEAREST IS. NO. or ACIES IN L£ASE• 16. NO. OF ACRE.I AND/OR DRILLINC UNIT PROPERTY OR LEA.IE UNE. FT. 12ll' 240 ASSICNED TO nns WELL 160 1Afw iu nt1rn1 drlg. linf, ii a.n 17. DISTANCE fllOM PROPOSED LOCATION TD NEAREST WEU. JI. PROPOSED DEYlll It. OIJ£<.71VE FORMATION DRILUNC. COMPLETED, 2250' v" Wasatch OR APPLIED fOR. ON THIS IV.SE, "· 100' 20. ELEVATIONS !Show whnhn ca or lll I ti. DRILLING CONTRACTOR PHONE NO. 122. APPROX. DATE WORK WIU START <; 7'"" "" Sanders Drilling 659-7480 October 1, 1988 ;U. PROPOSED CASINC AND CEMENTJNC PROCUM SIZE OF HOU SIZE or CA.SIN(; WEICHT l'ER FOOT SETrlNC Dl:rrH ,_. Q.llA.Nflty or CEMENT . c~·. .. ,') 1 /All 0 c:. /QI! ?A 41 300' v' 200 sx .. 11 1 /"l 11 "' <;J; 2250' 375 sx .... ""J "7 /OU t4. IS SURFACE OWNER Al.SO THE MINER.AL OWNER! YES C NO 0 I( NOT wrf.u~ 00.Mf mu11 ~ oa rlk or cup)' of aurf'acf' agrttn1m1 nnul 1w ruruir.hnl. ,, lrripud bnd, tuihcc bond ol15000 "ftqul'ttd. Agr~ement attached "/ "DE.5CRll£ LEASE BY Q.n. Q.Ta., SEC., TWNSHP .. RNC. SW/4SW/4Section 24, T6S, R94W / Pl.>:ASE .. ILL IN APPROPRIAT•: COili:$: OPEk. NO. 08985 DRLI. NO.------- FIELD NO. 75400 U:ASE NO.------- \Al_., FORM CD .... wws.,,T...,.C~--- " SIGNE TITU! Presjdent O..n August 18, 1988 PERMIT N0. __ ~8~8~--8~4~1~--APPROVAL DATE__,A .... U"-"'G'-'2~;J-'J..:.9..:.8.;;..8 __ nt_•v 2 4 \988 EXPIRATION DATE.....;µ;;;__ ______ _ APPROvtD ov _ _,9,lj""-JL= .... -,.,.~'"'tU"""'-'"". :·...------TITU Director -.,,..--'='-"'-'-'""-----------0 ii &:-Cu. ConM"rv. Cunun. DAn-1\\ I G 2 ;1 l~tl8 tONDITIONS OF APPROVAL. IF ANY: A.P.I. NUMRER Str-Instructions On Rtvl'nr Sidr o5 oY:s b'SJO 94W STATE OF COLORADO OOCCFORMI ...... 10/M OIL AND GAS CONSERVATION COMMISSION DEPAllM[NT OF NATUl.AL aaouacu .\. l.t:Ast: ut:SltiNAllON ANU st:llJAJ. NO. . APPLICATION N/A ,. . FOR PERMIT TO DRILL, DEEPEN, OR RE:ENTER AND OPERATE ~.It' INDl..t.N, Al.LOTT£[ OR l'Rlllt: NAMt: 1 ... n.,1: or woax DRILL fill DEEPEND RE·ENTER 0 N/A 1. UNIT AGREEMENT NAME b. rYH or WEU OIL 0 ~LL fJ ~NCU 0 MllL'tln.£ m N/A wr.u OTHER ZONE ZONl I. FARM OR LEASE NAME .. S. PHONE NO. Mead OPERATOR: Bonneville Fuels Corporation ( 303 ) 9. WELL NO. ADDRESS: 1600 Broadway, suite ')'.')'.7} 1110 863-1555 24-14-W CITY:' Denver STATE: Colorado ZIP: 80202 10. nELO AND POOL. OR WILDCAT t. LOCATION OF WELL (~n ioca1ion dc-a~Mi in attord.1.1K~ 'tl'il:h any 5'a1t' ttttuirrtnrnu.) Rulison A1 •urh« ~IFWL, ~ FSL 11. Q.TJ.. Q.Tlt ~E\;.. T.lt.. AND MERID ..... ~ IP co • 3·' / At prnpc.Hot'd Prod. nt l z_ I . · ~.:J\.~ ~ ~~"") i... :~. · as above sw/4SW/4 Sec. 24' T6S-R IS. DISTANCE. IF l.£SS THAN 100 PT. RON ANY OCCUPIED ILDC. PUii.JC lOAD. ABOVE ClOUND UTIJ.J1Y LINE Ol 12.COUNTY ~-Jt.AIUOAO (SHOW FOOTACl.S ON SUlVEY Pl.Al) Garfield . 1-1. DISTANCE f'JlOM PROPOSED LOCATION TO NEAREST 15. NO. or ACRES IN LEA.SE· 16. NO. Of ACRES AND/OR DRILLING UNIT PJlOPERlY OR LEASE UNE. fT. IAhu lu Matt'SC drlg. line-, ii .anJJ 1211' '240 11. DISTANCE f'JlOM PROPOSED LOCATION TO NEAREST WEU.. II. PROPOSED DEPTll DRILLING. COMPLETED, 2250' v" OR APPLIED FOR. ON nus LEAS£. "· 100' '20. ELEVATIONS {Show whnhn Cl or KB) I ti. DRILLING CONUACTOl PHONE NO. r::;7?(\ I r-~ Sanders Drilling 659-7480 1S. PROPOSED CASINC AND CEMENTING PROCK.AM SIZE OF HOU SIZE or CASING WEIGHT rta. FOOT SETrlNG DEPTH ' J I~ II A .r;/P." ?4H 300' ,,,,. " J 2 ' '"7 '"7 ,,..II A 1 /?11 rn ~H 2250' 24. 15 SURFACE OWNER Al.SO THE MINERAL OWNER! YES 0 NO D 1r NOT J.Urfacr-bond muM bf' Oii rik or copy of aurfart' •rt'numr must hr fon1iUird. ASSIGNED TO nus WELL 160 19.0BJE<."TIVI:'. FORMATION Wasatch 122. APPROX. DATE WORK WILL START October 1 , 1988 . 200 375 Q.llANrllY OF CEMENT SX sx Pl.f.ASJ:: fo"ILL IN APPROPRIAT•: l:ODU: Jf irripled b.nd, 1utfatt bond ofl.5000 b ttquittd. ,. ............... ,-1r::"11:?01J\.iJI'\@ Agreement attached" OPER. NO. 0898 5 DRU.. NO.-------- •DESCRIBE LEASE BY Q.Tl. Q.TR.., SEC., TWNSHP., RNC. SW/4SW/4Section 24, T6S, R94W ./ AUG 191988 FIELD NO. 7 5400 II.ASE NO.-------- FORM CD ..... w ... s ... T .. c...__ ___ _ ... TITLE President DAT'B August 18, 1988 PERMIT N0. __ .... 8._Bw...-____,_8'--'-4'-"'l __ _ Au G ?. '.J 1988 APPROVAL DATE--'-'-""'-"'-'~"-'''--'----P E.\., 2 11 \988 EXPIRATION DATE-'-------- APPROVlD &V __ VJ~~il&="''A,&'"'-"'aX'=--'tW~"'°'~·=~----Dirroor TITI..E-----~-----------DAni\! l G 2 :l !~88 CONDITIONS or APPkOVA~ If' ANY: In,.~~~ W)fll' G 2 9 1988 ~~ ll~--······· ... __ ,_]JJ GARFIELD COUNTY Oil &:·Gu. Co111<-n. Cumm. A.P.1. NUMB_ER ~t' lnslructions On Rcvrnr Sidt-o5 o±s bSJO 94W 1-€11 #23-44 1-€11 #24-14 1-€11 #26-12 BONNEVILLE FUELS CORPORATION EXHIBIT A SE 1/4 Section 23-T6S-R94W SW 1/4 Section 24-T6S-R94W NW 1/4 Section 26-T6S-R94W ., ' ·' .. ·l .-,:. < ., ".• .. -.; j~ I ··.: OOCCfOflWt _,_ •• l\tt or WOU DRILL a DEEPEN 0 RE·ENTER 0 ... RPI Of ~LL -~·-'-·"· .... :;;·.---.:...-.·-·--"---"•;. .. :--.. -~-.---... - ..... INDIAN. Al.LOml Ol n11E NAME I. IT AGREEMENT NAME ~o ~HCLI 0 Ml11.TlrU: r;;, ZONl lONl LOI I. A~ Ok LEASE NAME .. OPEllATOR: ADDRESS: Bonneville Fuels Corporation 1600 Broadway, Suite 1123 CITY: Denver STATE: Colorado ZIP: 80202 S. PHONC NO • ( 303 ) 863-1555 t. lOCJ\nON or WELL, • .,.... .......... d.a.ty""' in~ ... h...,. s..... lnjuUmwnu.) .\< ... o!MT < 1320 l'Sb lJ:l(l FEL I /13 1/l:.;;,{ 1/05"1 FEL- "' .,.....,...i l'rud. .... . l I. WELL N • SE/4 Sec. 23 T6S R94W ••. DlSTAHCL ., W$ TRAN IOO rr. now AH"/ OCCUP1tD ILOG. ftJILIC lOAO. AIOVI Cl.OUHD lmUJY UNI 01. lAIL.lOAD (SHOW fOOTACU ON S\111.VlY PU1} 12. COUNTY Garfield . ; U. DISTANCE rt.OM PROPOSED OCATION TO NEAREST • PkOPi:ll.lY 011. LEAS~ U!!E. "· 11':rn //17~ r 1Aho 1u ntunc drfK. lww. ii .. ,, 7 7 IS. N\). or ACR~ IN I.EASE' 240 11. DISTANCE f'kOM PROP'OSED l.OCATION TO NlAkEST WELL 11. PROPOSED DEl'llf DRILUNC. COMPLETtO. 2 250 • OR APPLIED roa. ON THIS UASI. "· N/A ·• 20. EUVATIONS (Show whftl>tt CJ« UJ 21. 011.ILUNC CONTAACTOR PHONE HO. 5600' .... Pl.OPOS£D CASINC A"ID CEMEHTINC PROCIAM Silt or Hou Sill or CUING WIJCKT PU IOOT SCTONC DUTif ... 12"ll/4" 8 5/8" 24# 300 ... 7 7/8" . .. 1/2" 10.~• ~~~u tt. IS SUI.FACE OWN£ .. Al.SO THE MINER.AL OWN£k.' YES 0 NO 0 1r NOT surf.ace-bood muN ~ oa lik or cvpr of .,r!tn-a,";l"C"f1nf'nl 1nust t.r furnh.hC"d.. Wlnipu41uw!,our6a:bondal'50001olft!Wml. Agreement forthcoming .. \UC d 'DESCRllE UASE IY Q.11.. Q.11... SEC.. TWNSHP. II.NC. SE/4 Sec. 23 T6S R94W ... SIO President 1Ttrw. .,..., .. fffnAI ut lf Ut11 "·NO. or ACRES AND/Ok OklLUNC UNIT ASSICNED TO THIS WELL 160 II. OIJECTI • FORMATION 22. APPROX. DATE WORK WIU. START A ril 10 1988 qu.wrrrv 01 ctw ENT ~uu sx 480 sx ,.;;;-__.h.-Pl.f.ASE tll.l. IN APPkO,lL\Tf. /" CObES: ona. NO.· o~<ifts 011.L.l. NO.------- FIELD NO. _7~5~4~0~0~--- II.ASE NO.------- FOAM CD. PElMIT N0. __ 8_8_-_4~3_4 __ _ APrkOVAL DATE--'M"""'-'AY"'-'1~7'--19_8_8 __ _ · SEP J. G 1988 EXPllATION DAR-------- ArPROVlD IY /t!£ &wl6 ;~ \ DATE MAY 1 7 1988 orrrt .. Director '"---~~~'"----------Oil ~Cu. Cotum-. Comm. CONDmONS or APPkOVAL. IF ANY: A.P.I. NUMBER )-.;i(r~~ :~fi'.\\~. ~:'.1 -··-'-··~ { MAY 2 0 1988 \ .•.. _ .. -·-·.. ... ··-···~-- StC' lnscruction1 On Rtvrrst Sidt> o5 Dlf-'6 GARFIELD COUNTY '· " --: ·" ... • ....... •·•••'• ,._.,__. ·-·· •• ·•'•-'••· .J'L ~-~·-·-.... ·•-'-'•---~~·••---~"'...•-'-••·"~"""""' ~= ... ·--· -..... - . '· -~-.~ ~N: CAS ~~~~~~~~~o COMMISSION ° \-v ~~ [ I j /,/GI :0 _J _DUA11WlHTOFllA1\llALIUOlttCU APR 08 1988 -~:-=-=-t...a.:...L::__~~="=--~-----r-ra~~~ ~ f _.. ;. APPLICATION '"u COLO. OIL & GAS CO ··.-FOR PERMIT TO DR.ILL. DEEPEN, OR. RE:ENTER AND OPERATE i..Mtcw-11 DRILLO. DEEPEND R.E·ENTER 0 OTHH llNCU 0 1e111.nru m A IONt toNt LU I. FAaM Ok lUSE NAME ._-------------------------..,~.-,H-O_N_l_N_o. __ --t ~~eves f-C'~c/ OPE• •TOR: Bonneville Fuels Corporation "" • ( 303 ) t. WUL HO. 1600 Broadway, suite 1123 ADDRESS: 863-1555 24 24 -/~/ CITYi Denver STAn:: Colorado ZIP: 80202 10. ntLD ANO POOL, Ol WILDCAT -='•.~U>CA-=::.'::-:TI=o:.::N=:oc:r:,:wcce.u:-1..,."'°"--:1oc,..-.. ,.....,.""';dn'-":-rt,-...i-77'1o"'~;..;;..;.'7'--..,.:-:. •"',"".,.-:s....,..--mi-,."",.,,--,....-.-.,'--------1 "' .. .c.c. 1328 Ftlti 1J6Q FSL I ;2./ I 'f:tuc_/ i7L/ I t-5-L "' ,..,....... Prud. - " sw 4·sec. 24 T6S R94W II. DISTANCE. Ir USS THAN ... FT. ,aow ANY llAIU.OAD (SHOW fOOTACU ON "1lYEY tu.,, t ID tLDG. tlJIL.IC lOAD, AIOYlt Cl.OUHO llTlUTY UHl Ol lt.COUNlY Garfield ... DISTANCE now PIOtoSlD LOCATION TO HCA IS. NO. or AClts IN UAsl' . 24'0 l'aOPEllY Ol UASE UNE, FT. • !Aho ........... drfir ...... ii..,, 11. DISTANCE now tlOtOSlD LOCATION TO NtAllST wtU. II. norosm OEFTH DllWNC, COMtLCnD, 011 Attt.ltD roa. ON THIS u.ui:. FT. N/A ·• • 7000' 20. EUVATIONS 1si.,w wllniott «;I 0< lll II. DalWNC COHTlACTOl PHONE NO. 5720' GR Sill.Of HOU su:t or CA.J1Hco raotoSED CASINC AND CEMENTING raoca.uc ' WDCHT PU FOOT llTtlNC Dtrnf II. NO. or AClU ANOIOI DlJWNC UNIT ASSICHtO TO THIS W£U .c._/, -·•-:.:7- It. OIJEatvE FOIUIATION Mesaverde tt. AtnOX. DATE won WILL STAIT April 15, 1988 OJ...WrfITT or ClMtNT (--. .. . 12 i 14" B 5/8" 24# 300' 200 sx .. 7 7 /8" a 112" 10.5# 7000' 1600 sx ' .. • . tt. 15 SUlrAC£ OWNU Al.SO THE MINtllAL OWNU! Tts D NO D If NOT aurfa« bicMMI MUM IJc. -f'ilco Of n>p)" of 1Ur6CT ai&IT'C"Qiml IUUN be-furnMnt, If lnipft laad, ...r... l.oM °'"°"" It '"'!ul..4. - Agreement forthcoming 0 DlSClllll U.U£ IY Q]ll. Q]ll.. SEC.. lWHSHP. lNC. SW/4 Section 24 T6S R94W u. ~_),_, l'IL\SE flU IN AttlOPllATE ,f" CODES: . oo/lf,C oru. HO. c_..;-·1 J _-__) DlU. NO.------ nU.O N~~7~54~0~0.__ __ _ IS.ASE NO.------ FOlW CD. lY\ \J \<; '\::::,_ .) . L yY,_'~t.o oration tslNr_.:::::o::;n:.===:::...:.79=--=-;:..i;;.;:..;;.;;:;.:,;;.;;..;..;.. _______________________ ~ mupresjdent D>.n 211 a /88 --·-- PllMIT N0. _ _.8._8=---4...._3_5~--APP~OVAL DAYE--------- MAY 1 7 1988 SEP l 6 1988 llCPllATION OATl _______ _ APtlOVlD IY jjt'f~ullz,,~ \ Director TITU---=.;;..:.:"-"'----------Oil fr. Cu. Conlt'n', ComM. MAY 1 7 198( DATE _____ _ CONDffiONS or AttlOVAL, IF ANY: A.P.I. NUMBER (~~~r~1J-~lfLW41m ~1 ~ MAY 2 0 1988 lj IJ I L • .;..._ •. -. ·-··-•..•. ··-· ---. . . . -.• /t::J Set Instructions On Rnrnt Sid<" o5 04-5 bSSJ GAfll'IELD COUNTY ~•An. u~ c;owlll.ADO OIL AND CAS CONSERVATION COM~ISSION /,if;-1,}. 7 DtPAl1MlHT Of N.\lVUL IUOlllCU il[ APR 08 1988 ]Ll, COLO. OIL & GAS CONS COMM ....... L LI.AU: PUIGNA llON ANP SUIAI. NU. (: ;. APPLICATION ···-FOR PERMIT TO DRILL. DEEPEN, OR RE:EmER AND OPERATE ..... INDL\H. AIJ.Oml 01 niu ....... , ",. • ... n?& or-.. DRILL 6 DEEPEN 0 RE-ENTER 0 ... ftflOfWUL .. ........ llNCU 0 IONI .,,._,,,... rn IONl W NIA CITI:" Denver STATE: Colorado ZIP: 80202 10. ntU> AND rooi. 01 WILl>C\T <.LOCATION or wcu 11<pon 1ocao;.,,. dnrty..,. i.. aaun1-. _...., s.w ............,._, Rulison "'""'-1650 Pllb 690 F\il':i /}Lj"Z..1 f:/ffl1 $'i7 1f:VJL 11.Q.n.Q.n.•-T.LANu "',...,.._ ...... _ NW/4 Sec. 26 T6S R94W IL DIJTAHCI, II USS 1lfAN ... "·now ANY OCC1IPllD &lbC. "''I.IC IOAD, UOVI: CIOUND unun UNl 01 It. COUNll &AIU.OADPHOW FOOTACU ON IUIVl:Y Pl>.1) Garfield H. DISTANCE FIOM UOl'OStD LOCATION TO NEAIEST l'aOPU.TY 01 LEAS[ UNE, FT. _.-I !Aho .......... '"'" ..... ii'..,, g Q Q ::;> 17 11. DLSTANCl FIOM PIOPOStD LOCATION TO NEAIEST WU.I .. DJ.IWNC. COMrt.EnD, oa APPU[D roa. ON nus l.£Att. FT. N/A . IL NO. or ACl£S IN LEAS£• '"' IL UOPOS[D DUTH 6300' 20. lt:UVATIONS 1si.o.. ..i...i..r ca .. u1 5300' 111. DklWNC COl<DACTOI PHONl NO. ... PJ.OPOSlD CASING AND ClM ENTINC UOCkAM SIZE. or HOU SIZl or CASIHC wue>n IU IOOT KTTIHCDUDC 16. NO. or ACU.S ANDIOI DIJWNC UNIT ASSIGNED TO TlllS WlU. ~ , I _,,. £--1-0 lt.OIJICTM rOJ.MAllON Mesaverde l'lt.APUOX. DAT£ won WIUSTAJ.T April 15, 1988 · (··_ .. QJJ4Hl'lt'Y or ClMINT . 12 1/4" 8 5/8" 2441 400' 200 SX \ .. 7 7/8" •4 1/2" 10.5# 6300' 1200 sx ... ... IS SUJ.FAC[ OWNU AUD THE MINlL\L OWNllll YU D NO D If NOT Mlrbct-bond •v• W .a lilt or <OpT of aur6tt o11trft11.m1 MV$l br ~ W irrip«4 lul, ...r.c. boM cllSOOO ~ "'l.m.I. Ac;Jreement •DESCJ.llE LEASl IY Q.n. ~SIC. TWNSHP~ &NC. "' NW/4 Sec. 26" TGS R94W tJ f-/4-'S{f... z -r b 'S <[ qlJ-..j -~VG:-~ ~(!_Q V\0 c; Ll co cLE/:, ... . . ) \ --i17PL£ASE tlU. IN APPJ.OPllATE ri:ooES: . c' '-',al c..c, Ol'U. 1:10. . L· •. U ___, DILL NO.------ ntLD NO. _,_7"'-5"'-40,.;0,,_ __ _ lLU£ NO.-....,,...---- FOJ.M CD. ()J \J \<:,~ -D..(., VV:,'-.:J/_:, Bonneville Fu Corporation ~--,,.----.r:.-'---=---------------------------- President DATI 2/10/88 .. 1TIM. .,.. .. p[J.MIT NO. __ --'B'"-S_~·_l_q,_:_ ... _7___ Al'PIOVAL DATt_...._M"'A-'-''-{ ..,1_7'--19_8_8 __ . SEP J 6 1988 l:XPIL\TION DATE_,_.--·----- APl'J.OvtD 1Y_,b._~t;~~"-'-'-'W."'-'-//,,-'-,_,-.~"'"""~------TITU Dirtttor \ Oi ._ C:... Co<u<n. Comm. MAY 1 71988 DATE _____ _ CONDmONS or APPIOV.U..., ANY: A.P.I. NUMBER .r·. - ! . .· ! ,_ . Stt lnllructions On R.ovrnr Sidr OS o+s GSSj Bo nnev ill e Fuels Corpora ti o n !\ Subsidiary of Bonnevi ll e Pacific Co r pora tion May 20, 1988 Mt. Gle11n Hn.rtrn an Garfield Coun ty Planning Department Garfield Co 11nty Co u rthouse 109 8th Street , Suite 3 0 3 Glenwood Springs , CO 81601 Dear Glen n : In fulfi l lment of t h e requ irements f or Specia l Use Permits for natur~l gas wells in Garfield Co u nty , Co l orado , please find attached copies of State Permits to Drill , Surf ace Agreemen ts, Leases and Land Survey P l ats for the fo l lowing we l ls : NW/4 Section 25 , '1'6S I R94W NW/4 Sect i on 26 , T6S , R94 W SW/4 Section 24 , ·r6s , R 94W SE/4 Section 21 , T6S, R94W SW/4 Section 23, 'I'6S , R94W ~I )"J NE/4 s~~ct.i on 28 , T6S , R93W Bonnevi.lle Fuels wi 11 comply with a ll other conditions of a?proval as set forth by the Com mission. The on l y other documentary requ irement set forth with r espect to t h ose l ocations is the for m of security to satisfy condition 3 of the Special Use "Permit. We are working with the coun ty attorney 1 s off ice in listing an acceptable form of security . Regards , BON NEVILLE FUELS CORPORATION 1600 Broadway I Suit e 1123 I Denve r, Colorado 80202 I 303-863 -1555 I Facs im ile 303 -863 -1558 ,, .... . -- OOCCFOMll -·-... .. . .. - STATE OF COLOlt.ADO C.. , AND CAS CON~ERVATION cor.t..-ISSION DUAa1MIHT or 11.\1\JlAL lUOlllCU ~~-......:::~~3~~~·~3~S~~~~l~~N::s::~-:::::-~~~~~~~~Ti:i~iiji~~~ (~ J APPLICATION L a.r....,.,1 """""'' ···-FOR PERMIT TO DRILL, DEEPEN, OR RE:ENTER AND OPERATE , i ; i 1 ·, ' • ..... INDIAN. Al.l.OlTU Ol nllt NAME •• nn Of WO&& DRILL D DEEPEN a RE-ENTER a "nn Oftw&u. , onua llNC:U a IOHl 11111.nru mi ION& W .. OPERATOR: Bonneville Fuels Corporation ADDRESS: 1600 Broadway, Suite 1123 CllY:' Denver STATE: Colorado ZIP: 80202 L PHONE NO. I 303 I 863-1555 •. LOCl<T>ON or WEU.11.,... ........ rltorlr IN In ......i-. ... h ..,. -~ A .... ~. l3.C0 PSfJ U20 FEL 111! 1~;;.L) //-()5"1 Ft:L-"' ................... _ I.WELi. NO. 23=33 SE/4 Sec. 23 T6S R94W IL DISTANCI, ., USS TIWI ... fT, now AHY OCCVPl[D W>G. PUl&JC lOAll, .UOVl caoUND unun UNl oa II. COUN1Y u1uoAD(SHDW JOOTACUON suaVlY "-'11 Garfield ... DISTANCE now PlOPOSED LOCATION TO NlAllST I IL NO. OF ACUS IN LEAS£' ~~ .. ~.!'!~.f..~~~:,1'-ino !IC/? 240 u. DISTANCE FlOM PlOPOSEO LOCATION TO N[AllST WELL. 11. raorosED DEPTH g~·~~'i::~~~~IS lL\Sl. n. N/A 2250' 20. lUVATIONS !Show whnhtt Cl °' lll II. DllWNC CONTIIACTOl PHONE NO. 5600' '.._ PROPOSED CASINC AND Cf.MlH11NC PlOCllAM Sfll OF HOU llZl or CASING "'1.ICKT re& fOOT UlTIHCDUfff 16, NO. Of AClU AND/Ol DllWNC UNIT ASSICNlD TO THIS WELL 160 It. OIJlCTIVE FORMATION IZ. ArPlOX. DATE WOil WIU. STAlT ril 10 1988 (-·. '' ~UAHfltY or ClMlNT ' 12'1/4" 8 5/8" 24# 300 ~uu sx . •' 7 7/8" 4 1/2" 10.!:>lf u~u 480 sx ,. • .. , . . ~ ' ·! i (" ' •' ._; .... s SUlfACE OWNll Al.SO THE WINElAL OWNER! YES a NO a tr NOT wrb« bond 11n111 W 011 fW or cvpy ot .,rf.acT a,;""'11WN atull Leo tumU.M.L ll;,,;p...ilud....r...kndol'IJOOOloooq<oiM. Agreement forthcoming .-\1:-Q..C.' d 0 DESClllE UASE IY Q.n. Q1L. SEC.. TWNSHP~ INC. SE/4 Sec. 23 T6S R94W IS. 110 • tl .......... ~ ... tf'4n.i • If UWI ~ PElMIT N0. __ 8_8_-_4-"3'--'"4 __ President APPROVAL DATE___.M~A~Y~1_7_1_9_8_8 __ l ~Pl.USE tlLL IN ArPROPllATF. .f'o COl>l'.S: OPEi. NO. O<OCffrS Dll.l. NO.------ nELD NO. __,7..::5c.:4"'0-"'0 __ _ LfASE NO,------ fOlM co. · 1.J,)S=(C ~+,.;, ~/10/SS · SEPIG1988 EXPIRATION DATE-------- Arraowo av /pf :&wi6 ,w DATE MAY 1 7 1988 nru_,,~~D~irttt:.:.:.:o~r....,. _______ ~ Oil Ir-Cu. Con.in'T. Comm. tONDmONS Of APrlOVAL, IF ANY: A.P.I. NUMBER f.·. -~ -~ .. :_ ~ Stt lnuructions On Rtvrn• Sidr SEC. Z 3 , T. lP S. , ... 2f W OF THE tJTJI p !tt. 80N'N£ V !LL.f: Ft/£LS ./f EB .. 44 GO. E:LE:J/.. 5573' ... ·+·· . 0--_tgqp_: - - .I I:) ..., SC A 1..1'. i "°"=:i:' ;c;;:i::E;;;;;;;;;;;;;;;;c:=='""O' (\j l() • L E.GE:ND ~ @ •T•HOAl'l'O r.OO"ITIO"' 0' t\j •1.0 IJll'CT'IO# C:O .. Hll" ... ~ (\j @ 01..0 COIUf&' ... '01.JHO ~ t... 0 W&'I. &. 1.0C.Al"IOH •TAOfll'O • ' ~ REFERENCE DOCUME.flTS ~ 191!/P GLO PLAT THIS WELL LOCATION P~AT WAS PREPARED FOR !3oAIAIG:Vtt.a_-l-'€LS TO LOCATE THE ./ es-44-• 11•.nj' F.~ L.a 1205' F..£.. L. IN THE St= 1/4 :5E 1/4, OF SECTION 2'3 ,T.ks._., R . .;;..c:zou..--l OF THE CzTJI P.;lt· G//!?El£l .. D COUNTY, _.....:C::;O""""'LO=R....,4"-"'p_,o'°---------i -' . ~· .... ENE.Rl1Y SURVEYOR'S CERTIFICATE. I, LARRY D. BECKER A REGISTERED LAND SURVEYOR lfl THE STATE OFC()(.,0/2,d/)CJDO HEREBY CERTIF f ~HAT ;'J-11~ SURVEY \.YASqt.,ADE UN.DER MY .DIRE.GT. SUPERVISIOfl AND THAT THI::; PLAT/REPRESENTS SAil: '.;;iUkVE Y. -.... --·74?~(~~-- SURVl!.YS a ENl1/NEERINl1 CORP Tl~ tK>Rl;:Q/li (JHIVE,'..>,11rf_ ...... .,) Ulof,1110 .JUNCTION, <JI Ht:..,Of {~'JJJ ll_,~ -T:.!ltl f-'"O:"e!"...cH::,:O,_ ______ . RIGHT-OF-WAY AND SURFACE DAMAGES AGREEMENT STATE OF COLORADO ss. COUNTY OF GARFIELD THIS AGREEMENT is effective the 5tn day of 7/f ~ , 1988, by and between Norman Mead and Mary Jane Mead, 709 County Road 320, Rifle, CO 81650, hereinafter referred to as "GRANTOR", and Bonneville Fuels Corporation, 1600 Broadway, Suite 1123, Denver, CO 80202, hereinafter referred to as "GRANTEE". WITNESSETH: For and in consideration of the covenants, terms, conditions, and other good and valuable considerations hereinafter set forth, Granter and Grantee hereby agree as follows: Grantee intends to drill wells for oil and/or gas, said wells to be known as the 23-44 Mead and the 24-14-W and 24-14-MV-Mead wells, hereinafter referred to as "the subject wells", to be located in the SE\SE\ Section 23 and SW\SW\ Section 24, Township 6 South, Range 94 West, Garfield County, Colorado. Gran tor does hereby convey to Grantee, its successors and assigns, a right-of-way upon and across the above described land and premises, together with the right so long as said right-of-way is used for the purposes herein granted, to enter upon and across the surface estate of Grantor, to construct, maintain, repair and use limited access roads, together with all necessary bridges for access to the subject well location; and, to construct a wellsite, tank batteries, electrical lines, pipelines, and all such other related facilities as are necessary for Grantee to properly drill, equip, complete for production, produce and/or plug and abandon the subject well. Granter hereby reserves unto itself, its successors and assigns, all surface, water and mineral uses and the right to gr~nt additional and successive rights-of-way which are not inconsistent with the rights granted to Grantee at all times that this right-of-way is in effect. Entry upon the heretofore referenced surface estate and right-of-way for use of the access roads, wellsi te, pipelines and all other related facilities are hereby granted upon the following express conditions: 1. Grantee, save and hold Granter claims, demands and its agents, successors and assigns, will harmless from and against any and all causes of action including reasonable -1- expenses, attorney fees and court costs, arising from or in connection with any claim for damages to persons or property caused in any way by Grantee's entry onto and activities conducted upon Grantor's property. 2. Should Gran tor use the rights-of-way or easement herein, Grantor agrees to indemnify and hold Grantee harmless from and against all claims, demands and causes of action including reasonable attorney fees, for personal injury, death or property damage arising out of Grantor's willful or negligent act or omission while using said right-of-way or easement. 3. Grantee shall notify Grantor prior to its initial entry upon the surface estate of Grantor, and Grantor and Grantee shall mutually agree upon the location of all roads, pipelines, wellsites, tank batteries and any and all other facilities to be located upon the surface estate of Grantor. Grantee shall not commence any operation until Grantor has approved the location of all such improvements, however, such approval shall not be unreasonably withheld. 4. Grantee agrees to use the access road, pipelines, wellsite, and related facilities hereon in conformance with acceptable and prudent oilfield standards and practices. Grantee agrees to tender to Grantor in advance of operations a one-time payment of Forty-five Hundred Dollars ($4,500.00) for the wellsite location and right-of-way over and across the access roads during the drilling, completing, equipping and production operation of the subject well. Grantee agrees to pay for any and all damages to growing crops, livestock, ditches and fences caused by any and all of its operations on said land. 5. This Agreement shall remain in full force and effect from the date hereof, and so long thereafter as the subject well is in production, and/or the oil and gas lease incident thereto and under which the subject well was drilled remains ·valid. 6. Any new road constructed to permit access to the wellsite location and related facilities will not exceed a total surface width of twenty ( 20) feet. Grantee shall at all times maintain said roads in good condition and acceptable repair, all at the sole cost and expense of Grantee. 7. In the event that the subject well does not result in the discovery of oil, gas, or other hydrocarbons in paying quantities, then Grantee agrees to plug and abandon said well in accordance with all laws and regulations of the State of Colorado. If the subject well is plugged and abandoned, Grantee agrees that within a reasonable period it will restore and re-seed the Grantor's surface estate to as near its original condition as practicable. Grantee shall have the right upon termination of its -2- ..... operations hereunder to remove or have removed all of the equipment and materials at its sole cost, risk, and expense. Notwithstanding the foregoing, Grantor may expressly waive portions of said restoration or reclamation. 8. In the event Grantor suffers permanent damages to water well(s) located on the subject lands which render such well(s) incapable of producing water of the same quality and at the same rate as such well(s) were producing water within one year prior to Grantee's operations on Grantor's surface estate, Grantee shall justly compensate Grantor for such damages, which shall be determined by and between Grantor and Grantee, in the event such damages actually occur. 9. The foregoing Agreement shall not be recorded in the office of the Clerk and Recorder of Garfield County, Colorado, unless and until the right-of-way and easement herein have been located and described in which event the right-of-way and easement herein shall not be in blanket form as set forth above but shall apply only to said specifically described portions of Grantor's property. Any breach of this paragraph by Grantee shall be cause for termination of this Agreement which shall give to Grantor a cause of action against Grantee for damages and attorney fees. 10. The terms, covenants, and provisions hereof shall be binding upon and inure to the benefit of the parties hereto, their successors, and assigns and the rights and easements herein granted shall be assignable together or separately, wholly or in part. IN WITNESS WHEREOF, the Agreement is executed the date first set forth above. GRANTOR Yl~'\-v.J ~~~ Norman Mead = th is Mary The foregoi~ent 5w. day of Jane Mead. GRANTEE BONNEVILLE FUELS CORPORATION ifr~doot was acknowledged before me on 1988, by Norman Mead and Witness my hand and official seal. My commission expires: ~hL, ~· ~ -3- ( 1 -~ ', .... 1 ../The foregoing i strument was acknowledged before me on this 4-rvt day of t1. , 1988, by Greg Twombly, Presdient of Bonneville Fuel Corporation. Witness my hand and official seal. -4- MEMORANDUM Page I of I Fred Jarman From: Steve Anthony Sent: Tuesday, November 28, 2006 2:14 PM To: Fred Jarman; jwsmith1951@aol.com; Brenda.LinsterHerndon@encana.com Subject: MemoEncanaSUPParachuteStagingAreaPart2.doc MEMORANDUM To: Fred Jarman From: Steve Anthony Re: Clarification of Comments on the Encana SUP for Parachute Staging Area Date: November 28, 2006 My earlier comments (October 6, 2006) to you are in italics below: The Integrated Vegetation and Noxious Weed Managenzent Plan is acceptable. Because of the unknown tbnetable of final reclan1ation it is recon1111e11ded that the per acre rate ofrevegetation security be $4000 per acre. The project enco111passes 7.2 acres; this would be a total security of $28,800. For further clarification, the seed mix included on page 5 of the Integrated Vegetation and Noxious Weed Management Plan is acceptable. The Landscaping Plan on page 2 of the Supplemental Impact Statement is also acceptable. 11/28/2006 OU. AND GAS I.EASE 'l I rJ AGHElaNT, Jbdc and cnteml into •hi• third d17 o' Qec em her ,p ----------'V{"--'"'--'B"-'-.__.R~•~•~v~•~•~a~n~d~L~e~a~n~o~r~a~R""'e"-"e~v~e~s,_ ____ _ rder Book 293 Page J61 c -:Llf .23 "'-c.o-0 -----19..5.Z.._, b7 and betwem. , p&ttJ ol the fint pan, herdoafter call«!. ieslOI' (whether one or morcJ Joe T. Juhan -·---· PlllJ' of the K<lOlld Part. k»ee. WITNESS£TJ:I.: Thal the~ lot and iD. COAaioiu.tioD of-__ Five and No Ll!l..0-::-.....::...--"'-·=--""-- - - - - - - -''ollu .. in hand paid, receipt of which it b.ereb7 &Wowled&ed, ol the ro7altiel _ benin provided, a.not ol uie qrtti..11ait1 •l lesaee J:icreu:i ""llW.Ocd, bereb7 l(PJ11a, lea .... and le.A uchuiYd.7 unto l~.taee lot the piupo.e of lllYUtig&ti"l(, UJolonna:, vro1vc<:uu1r. drilling and JJJJ..DJ.ng for and produ.;Jng oil. ga1, <:Uloghe&<1 l'U. and all otller llline:nla, ll:rin& pipe liDea, buildiq; tulU, powu &Utioo.s, ldq>houe lien and other tuuctutu Utcnon to prOl!uce, 1a•·c, Wi;e cue 01, uur, tiwsport,, and 01r0. .:Id producu, and boiui.nr iu cmplo7ees. the foUo.m. dacrlbcd Jud . CountJ, State· o' C olorgdg &o-w:lt:,--,-------,..----,--,-------;--:-::---c--ccc·-----------------·~Lthe.._SEf of Sectjgn 23· swt of the~.Qf Section M,"·~-- ____________ _NW4 of the NWf of Sectjon 25; Niof the _ _N,E.._Qf Section 26 Townshjp 6 South. Range 94 West of the 6th Principal Meridian Book 293 Page 362 STATE OF-------· County of _________ _ ACKNOWLEDGMENT On this ______ day of--·-···--------·-·--------·-· 19 __ __, before me personally appear"'---------- ·····------··--to me known to be the penon_ descn'bed in and who executed the foregoing instrument and acknowledged that.·--······-··-·----executed the 12rne as ______ _free act and deed. Given under my hand and seal this-·-···--······-····-···-···-day of.·---------·-----·------• }9 ______ , My Commission Expires---------------- Not1r1 f'.iblic.. ACKNOWLEDGMENT-MAN AND WIFE STATE ·OF· _ __.c....,nul~our~a~d~o.,_ _____ } ..,,.,,,_,,,,u_,·.,,ac:r . .!Jeld ____ "· '·~ •• # day oL--··--· J~ne.. ·················-·• 19_.5.6..__. before me personally appearcd---·-·····--·----- ll!j~:o<;'~·,t...s....a.nd-Le.a.no.i:a . ..Re.e.Y.e.~ ... _____ to me known to be the person_!!.. described in and who executed ~;~e~t and acknowledged that._t.hey ____ executed the same as_J.}lgJ.r._free act and deed, including the release Ue rli._ht. of homestead; the said wife having been by me fully apprised of her right and the effect of signing and _t4_e'µid:instrumenl J. --tQJ.m,·~d and seaJ this ........ ~ ................... day of.. ·····--·-Jun~--· .. ····-········-----·· 19-~-~..!. -:...,-~. -i-'"' ~ • .:.-·.... ""f. eS ___ .7.:;h.~ ... .3., .. l.'."1:.5..E.. ·-------·------... -.'.:7-l:~ ..... ..a..._J.n,..41.!.!fl~t:~{b,k ··,""·"'·'"/,.,·=;~-..... ·~ . 0 "(!-· MONTANA ACKNOWLEDGMENT STATE OF-------·----} ... County of--------------- On this ___ . _____ day of_ .. __ _ ......... , 19 ........ ......, before me.---·-···········-·····-·--·- a notary public, personally appeared.-·-···· known to me to be the person ...... whose name .. --·---·-··-·-subscribed to the within instrument, and acknowledge to me that. .. uccuted the same. Witness my hand and officiaJ seat My Commission Expires--·--···----·· ...... ·-·---·-··--··-·--Notary Public within and for the State of.. ..... -------·······-···········--- l I I ' / I " ' STATE OF----··-··----·-------·-} County of---------·-------- Residing aL---------···--·--·-···--·-····-----·------------ COLORADO ACKNOWLEDGMENT ... "' ? ! i The foregoing i.nstrument was acknowledged before me this.. . .......................... day of ............ _. _____________ , 19 ___ , by WITNESS my hand and oHiciat seal. My Commission Expires. ···-·-----------·--·-:::.::_-··-----------Not;;;'PabliZ'"' P. O. --· ...... _ .. __ .-.... ·----.. -.. -... ·------------- I SUITE 1800 1700 BROADWAY DENVER, COLORADO 80290 SUITE 400 102 NORTH CASCADE AVENUE COLORADO SPRINGS,COLORADO 80903 WILLIAM R, ROBERTS HOLME ROBERTS & OWEN ATTORNEYS AT LAW SUITE 400 1401 PEARL STREET BOULDER, COLORADO 80302 TEL(PHQN[ (303) 4<M-59S5 TtLECOPIER 444·1063 TELEX 45·4460 April 26, 1988 Bonneville Fuels Corporation 1600 Broadway, Suite 1123 Denver, Colorado 80202 Attention: Brian Wert Re: W.B. Reeves Lease; Special Use Permit Gentlemen: SUITE 900 50 SOUTH MAIN STREET SALT LAI\[ CITY, UTAH 84144 OE'.NVER TECHNOLOGICAL CENTE>t SUITE 900 8400 EAST PRENTICE AVENUE ENGLEWOOD, COLORADO 80111 Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas lease is the valid existing lease as to the following described land in Garfield County {the "Land"): T. 6 S •. R. 94 W .. 6th P.M. Section 23: E/2SE/4; Section 24: SW/4SW/4; Section 25: NW/4NW/4; Section 26: N/2NE/4. In connection with our ongoing title examination of leases you acquired from Mobil, I have reviewed abstract of title MT-12102, covering the Land, prepared by Deister, Ward & Witcher of Billings, Montana and certified to February 26, 1988 at 7:30 a.m. {the "Abstract"). Although this letter is not intended to be a complete title opinion it is clear from my review of the Abstract {and subject only to the assumption concerning continuous production described below) that Oil and Gas Lease dated December 3, 1952 and recorded in Book 293 at page 361 of the real property records of Garfield County, Colorado from w. B. Reeves and Leanora Reeves to Joe T. Juhan {the "Lease") is a valid lease covering the Land. It is also clear from the above-described abstract that you, along with others, own the leasehold interest created by the Lease. Bonneville Fuels corporation April 26, 1988 Page Two The Lease was validly committed to a voluntary plan of pooling evidenced by Communitization Agreement dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the 6 Communitization Agreement6 ), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under such section shall be allocated on the basis of surface acreage to each parcel contained within Section 26 of Township 6 South, Range 94 West. Pursuant to the terms of the Lease and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under Section 26 since the date of the Communitization Agreement, or that shut-in royalties have been paid during times of non- production, the Lease is in full force and effect as to all lands originally covered by the Lease. In addition to the then owner of the leasehold interest created by the Lease, the Communitization Agreement was executed by W. B. Reeves, Leanora Reeves, Norman H. Mead and Mary Jane Mead, who, collectively, owned the surface and the mineral fee estate in the Land at the time of the Communitization Agreement. Perhaps the confusion that exists as to this matter arose because of top leases acquired in 1980 by Northwest Exploration Company from some of the owners of surface and mineral interests in portions of the Land. The leases acquired by Northwest Exploration Company were top leases and are subordinate to the Lease. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. Sincerely, °'t./~ Rf~ William R. Roberts WRR/lgm DlPAlTWINT Of 11.\tuv.L IUO\la~ G1 "' .J . (7:"~;~=--L,/.~~__.c:..;..:;;~A~PP~U~CA~n~o~N-=------~-...,.LiLUWco~w~.O~IL~&~GASRiii~o ···-FOR PERMIT TO DRILL. DEEPEN, Oil llE~ENTEll AND OPERATE ..... 1H~11..w.um101n11E1wu ' ., ·' • k MC Of"°" DIULL o. DEEPEN a llE·ENTEll a i.mcor>wUL ~. r.1[ llNCU a ~11PU: m ...... ~~~:=::,..,,.,'=::---- --a.;;J onua IOHI ~-w L fAlll 01 LUSE NAiii .,. .. ------------------------..-L-PH_O_N°"'l'""N-0.,..---t R~9'!96 ~Cl d OPEMTOl: Bonneville Fuels Corporation ADDRESS: 1600 Broadway, Suite 1123 86~~~~~5 CllYi Denver STATE: Colorado ZIP: 80202 L l.OCATION Of WILLI ...... --..c1rar1y .... la"""""-''""..,,.... ~I MMO.W.. 1329 f'lfti 1J29 FGL /-:2/ I '/:Wl/ /7'-11 {.::f.L Al,.._. ....... _ 1.WULNO. SW 4· Sec. 24 T6S R94W IL DISTANCl, If ws THAN ... rr. no11 AH't occurtlD lU>G. PUILIC IOAD, AIOW G&OUND vnun UN& 01 IL COUNTf ltAILl.OAD (SHOW fOO'UCUON SUl\Tt rtA1) Garfield H. DISTANCE ROii PIOl'OSED LOCATION NEAUST IS. NO. OF ACIU IN LEAH' raoru.n 01 UASE UNI. rr. 240 """' "' ....... ·~ -.. r "'11 u. DISTANCE ROii PIOIOUD LOCATION TO NEAIEST WEU. IL raorosED DU111 Dt.IWNG, COllruttD. Ot. APPLIED rot.. ON 1HIS LEA.SI, rr. N/A • 7000 I IO. lUVATIONS !Show ........ Ga .. Ill II. DRIWNG CONTIACrot. PHONE NO. 5720' GR ... raoroSED CASING AND CDl1NTINC PIOCIAll Sill. Of HOU llZl Of C.UINU wtlC'iHT ru R>OT snttHCDUTH IL NO. or ACW AND/Ol DllWNG UNIT ASSIGNED TO 1HIS WW. :j ef 11. OIJECTIVE FO&llATION Mesaverde 11.Arraox. DATE WOt.l WILL ITAt.T April 15, 1988 (-.. .. q,.wcrrrr or CIMlNT :. 12 114" 8 5/8" 2411 300' 200 sx •' 7 718" 4 112" 10.5# 7000' 1600 sx ... • 11. IS SUI.FACE OWNEI Al.SO THl MINllAL OWNll! YU D NOD If NOT Mtfa« Loud •u• lac--lik or cvpy ol Marf'arr a&rf'l'IM"IW aiwc W funs&.hnl. II lnfc-l lao4. ..r.c. ..... o(UOOI) .. ft<jwl .... Agreement forthcoming 'DUCRIH l.£ASl lY Q1L Q1L. SlC. TWNSHr~ ING. SW/4 Section 24 T6S R94W u. ~ PIL\SE nLL IN APPIOlllATI: f" CODES< oria. NO. O?llSS Olli. NO.------ nll.D N0. •7~5~40~0.__ __ ~ nn.apresi dent DATS 2 /] 0/88 rllMIT N0. _ _,8"'-><8_-_4~3,_5...._ __ MAY 1 7 1988 APrllOVAL DATI--------- SEP 16 1988 EXlllATION DATE-------- AnllOVED lY /d.tt.~tll6./a'6 \ mu DirMor ----"~==-----------();! " c:.s. c:o.um.. Com ... MAY 1 7 198ff DATE------ CONDmONS or APPllOVAL, ., ANY: A.P.I. NUMBER S« ln1tniction1 On Revtnt Sidr o5 04-5 b5SJ ' .. ' ~ "' l>J ~ EGE.NO @ eT.UllDAillO a.ooATI-.,, •.i.O 8fl0f'IOll CO,tllffill• . - -_Jg/1.:. ---<r ' .. I 80NN~V!Lt.t:: FL/.€.LG MV#24-/4 (i0. ELCV. 5753 ~ !\, ~ i'!,..G i:.41-lte•• "0Ull8 ,~, • I I :..j ~I " I 0 588°4Z'W. 1704.02 'C,.t.,O. Z7C4-0Z' G,.t..D. h' 0 Wai.. I. l..OOATIO# •TAJlll' .. O. ij\_ REFER~HCE. DOCUMEN'TS 1984 OLO PLAT QUADRANGLE, USGS 8.4GIS OF 8£ARINtJ1 E: '/R /\/. t.!Nl: 5£c. 2& N'.89',f:2'2&>"C. THIS WE:LL LOCATION PLAT WAS PREPARED FORJ,~CUJ.:!t'-"."-..Ji;"JJ.Ji.~Z..-.---1 TO LOCATE THE __ _.M""""V.:...· 4'__.t!"'4"---_./_,~----------.1241' F. _s L.a 1211' F...ti._L. IN THE SW 1/4 SW 1/4, OF SECTION~,T~ .. ,R.-""':c...u"'--1 OF THE~P.M. fiARFIP:lD COUNTY, _ _::C,,,O..:..!=.L.:&...r.s...!t~~--------1 ;'""\ -- l!N/llleY SURVEYOR'S CERTIF'ICA'TE I, LARRf D BECKER A REGISTEREC :....AND SURVEYOR IN THE STATE OF C0(,,0/r!JJOQDO HEREBY CERTIFY ;,,_,AT THIS SURVEY \VAS MADE UNDER MY DfRl!CT SUPERVISION AND THAT THIS PL "r REPRESENTS !JAIC SURVEY. f ( •CAL. .. 1"•1000' et11IV1£Y• A /llle/Nl£1lll/Nfl OOllP. 71~ HCJtlflZOftf OltlV«,~.J/ TC 3"° fl"AHO JUliCTION, <;;O 81~01 <•051. ••e-.,. •• , STATE OF COLORADO COUNTY OF GARFIELD RIGHT-OF-WAY AND SURFACE DAMAGES AGREEMENT SS. THIS AGREEMENT is effective the 5ffi day of ?/I ~ , 1988, by and between Norman Mead and Mary Jane Mead, 709 County Road 320, Rifle, CO 81650, hereinafter referred to as "GRANTOR", and Bonneville Fuels Corporation, 1600 Broadway, Suite 1123, Denver, CO 80202, hereinafter referred to as "GRANTEE". WITNESSETH: For and in consideration of the covenants, terms, conditions, and other good and valuable considerations hereinafter set forth, Grantor and Grantee hereby agree as follows: Grantee intends to drill wells for oil and/or gas, said wells to be known as the 23-44 Mead and the 24-14-W and 24-14-MV-Mead wells, hereinafter referred to as "the subject wells", to be located in the SE\SE\ Section 23 and SW\SW\ Section 24, Township 6 South, Range 94 West, Garfield County, Colorado. Grantor does hereby convey to Grantee, its successors and assigns, a right-of-way upon and across the above described land and premises, together with the right so long as said right-of-way is used for the purposes herein granted, to enter upon and across the surface estate of Grantor, to construct, maintain, repair and use limited access roads, together with all necessary bridges for access to the subject well location; and, to construct a wellsite, tank batteries, electrical lines, pipelines, and all such other related facilities as are necessary for Grantee to properly drill, equip, complete for production, produce and/or plug and abandon the subject well. Grantor hereby reserves unto itself, its successors and assigns, all surface, water and mineral uses and the right to grant additional and successive rights-of-way which are not inconsistent with the rights granted to Grantee at all times that this right-of-way is in effect. Entry upon the heretofore referenced surface estate and right-of-way for use of the access roads, wellsite, pipelines and {Ill other related facilities are hereby granted upon the following express conditions: 1. Grantee, its agents, successors and assigns, will save and hold Grantor harmless from and against any and all claims, demands and causes of action including reasonable -1- \ expenses, attorney fees and court costs, arising from or in connection with any claim for damages to persons or property caused in any way by Grantee's entry onto and activities conducted upon Grantor's property. 2. Should Grantor use the rights-of-way or easement herein, Grantor agrees to indemnify and hold Grantee harmless from and against all claims, demands and causes of action including reasonable attorney fees, for personal injury, death or property damage arising out of Grantor's willful or negligent act or omission while using said right-of-way or easement. 3. Grantee shall notify Granter prior to its initial entry upon the surface estate of Grantor, and Grantor and Grantee shall mutually agree upon the location of all roads, pipelines, wellsites, tank batteries and any and all other facilities to be located upon the surface estate of Grantor. Grantee shall not commence any operation until Grantor has approved the location of all such improvements, however, such approval shall not be unreasonably withheld. 4. Grantee agrees to use the access road, pipelines, wellsite, and related facilities hereon in conformance with acceptable and prudent oilfield standards and practices. Grantee agrees to tender to Grantor in advance of operations a one-time payment of Forty-five Hundred Dollars ($4,500.00) for the wellsite location and right-of-way over and across the access roads during the drilling, completing, equipping and production ope rat ion of the subject well. Grantee agrees to pay for any and all damages to growing crops, livestock, ditches and fences caused by any and all of its operations on said land. 5. This Agreement shall remain in full force and effect from the date hereof, and so long thereafter as the subject well is in production, and/or the oil and gas lease incident thereto and under which the subject well was drilled remains valid. 6. Any new road constructed to pei::mit access to the wellsite location and related facilities will not exceed a total surface width of twenty (20) feet. Grantee shall at all times maintain said roads in good condition and acceptable repair, all at the sole cost and expense of Grantee. 7. In the event that the subject well does not result in the discovery of oil, gas, or other hydrocarbons in paying quantities, then Grantee agrees to plug and abandon said well in accordance with all laws and regulations of the State of Colorado. If the subject well is plugged and abandoned, Grantee agrees that within a reasonable period it will restore and re-seed the Grantor's surface estate to as near its original condition as practicable. Grantee shall have the right upon termination of its -2- . -. operations hereunder to remove or have removed all of the equipment and materials at its sole cost, risk, and expense. Notwithstanding the foregoing, Granter may expressly waive portions of said restoration or reclamation. 8. In the event Granter suffers permanent damages to water well(s) located on the subject lands which render such well(s) incapable of producing water of the same quality and at the same rate as such well(s) were producing water within one year prior to Grantee's operations on Grantor's surface estate, Grantee shall justly compensate Granter for such damages, which shall be determined by and between Granter and Grantee, in the event such damages actually occur. 9. The foregoing Agreement shall not be recorded in the office of the Clerk and Recorder of Garfield County, Colorado, unless and until the right-of-way and easement herein have been located and described in which event the right-of-way and easement herein shall not be in blanket form as set forth above but shall apply only to said specifically described portions of Grantor's property. Any breach of this paragraph by Grantee shall be cause for termination of this Agreement which shall give to Granter a cause o~ action against Grantee for damages and attorney fees. 10. The terms, covenants, and provisions hereof shall be binding upon and inure to the benefit of the parties hereto, their successors, and assigns and the rights and easements herein granted shall be assignable together or separately, wholly or in part. IN WITNESS WHEREOF, the Agreement is executed the date first set forth above. GRANTEE BONNEVILLE FUELS CORPORATION Norman Mead "'" ~kent this Mary The foregoi~ent ~ day of Jane Mead. was acknowledged before me on 19 8 8, by Norman Mead and Witness my hand and official seal. My commission expires: ~ft;_, ~-~ -3- . •, ' The foregoing i strument was acknowledged before me on this q--J--t1. day of a , 1988, by Greg Twombly, Presdient of Bonneville Fuel Corporation. Witness my hand and official seal. My commi•'1oo ''P"'" (:2-?~ Nota u 11c /fP0-8 ~,,y).~Poj''/#/123 Pe~ C'--tJ w;i-ez._ -4- rqRM 88 U,..JT-WYO .• C01.0• OIL AND GAS LEASE AGREEMENT, J.Ude ~d mtercd ioto •hi• tbj rd....----.da1 oL_ ___ J)_e_c.e.m..he_r_ c. -:Lli co-233'- ___ ,. ......... 19..52._., by a.nd hu•ecn _ .. _., __ w_~_!} ......... Jie eve s_ani;l.b.~.~_B.~y~---------·--·-··-···--·--··---------- -··----·---·-------··-----------·---... -.. --, partJ of the fint put, hcni=.ft.::r c.illcd lcuor (whether one or moreJ a.nd--·-··-·--·--·-------·-··-.. -·-----·--Joe T · Juh_~n,-------·-·---·-----·--· .. ·-·----··---·-·· p...-.7 of the 11CCOnd part, Jcs.ee.. W1TXES:.ETJ:i: Th.ii the Je!lOr Jor and hi o;.owicicrallon o1-_____ £j_y_e...an_cLNo./..10.Q_,,, __ .._,, .. :-_ . .=........,,_ __ ,:-..... .,,.-.:: .... ::.-.-- - -LlOJ1ua, in hand p.i.t.;I, rcccll't of .,.hk.h ia htteb7 a<.:kno.,.le<!ged, ol the ro7altict bucin pro·11ded, and ol tb.c agree'11"'1!s <>I lcucc '-"ro.t11 """""-'t1cll, hereby 11ra..n;¥, !ea1u and l•t.s uclullvclY: unto i~!>Sec for the_pu..po!IC 01 1.:n·nugaUJ:i11, '"-">:lor_10g, !Jr<16!JeCU"i• dUUUlll' and uu,,uig "" ar.<J p:wuci::ig oil, ga•, ""'s1ngncao aas, ann aJ.i otbcr wincrala, laruig pipe line1, h111ld.iq ta.11.l<S, power 1u.uon1, =cp11oi.c lwe1 a.an 11ther 1uuctu..e1 uiefcon to pr<.<:~cc, U\·e, lil.l<c caic 01, u-c.at, u·a1.>port, and own Aid product.I, and houMnir itt =plo7cca, the iollo'll'ina" d~ribed land i.n.._____Ga.r.fi.ejd____________ Cowny, State· oL-C_Q_lQ.r_a.,d.Q ___________ to-wit: -··--·-----·---·--- ---------·-·E.i...oL1h.e.-SE.i...of-S.e.cJ.i.C!IL1...J.;....S.W.t.1oi-1h.e __ S~.Qf._S~.QJ:j9_n_f_4_;__ __ _ -·---------·-~J:__QLJ___~W~_2.LS..mi2Il-2-2~.N.~.9.L.tll~ .. .N.~...Q.l.S.~sJ12.n .. 1..Q.,__ __ --·----·-----------'I own sbilL-6..,...SQyJ;_b~n~-w._~_Qf.Jh~.9th Pril]_£iPA.! ... M.~ ridi~ -----'-<>nw.ru.D,!l---··--.1.~.0-·--·---·----·------•cres, m<>rc or lu.a. and .. 1~ir~~~~P. ;ilo o;1!!~~r ~~:a.1 1 :~!~ :if.: :rw:JiYP-:J":f=.• i!=u~~~~:; ~r"':!11 m~cbfoif~1p~~f::~:"~ l':s~d;~-~~:i~1 ~c~ cunduct w-JJ.l.lni: O!Jeni:.ion1 thc.rcon and ahould producU<>D f(llUlt hvm sucb. "puauo110, tb.11 leak 1blll.l =nun 111 iu.JJ 1-.rcc and dlect u lo11g u o!.l or iru or c&ll.ll~hcad iaa. anau he produced therc:rorn. 1n co11aiduauon of the prcmi~• it i• hereby mutu.o.Uy agreed II lollo•1: _ . . . l. 'file Jctlle<I ab.ail ilcuver to the cfedit 01 t~e lcuor u royalt7, Ir~ of co•~ m the pipe line to whu:h Jeu"" wa7 con.nect _IU wells, the equal onc-e.iirhth Ui) p&rt 01 all_otl produce, o< •I Lile lcS1c~• <>puon, may pay lo the loS<>r for .uch 011e·c.ighth l~) <Ofa.tty the IUM.kct pnce 1or otl of like gra<Je own g:ravny prcva.t..lmg io. t.ec uc!d Wbefc _prt>duced on the day 1uc..b. o!.l u nm wto t.n• p1~ liDe, or wlu stoaii'e i.aW<a.. ~. lhc Je»ee 1h&ll v•Y Jo~r, a,s wyal~y, '?"c·Cli!nth 01iJ 01 ~~e procec•U lrO"l tne .ale 01_ U>c gu, as suca., ior ps 1ro1:i well~ _.,.·hue gai only is f.cund, and whe.e no< uted or aold o.h•.H pay Jol!ty \$~U.UOJ l!c.i.i<1 per O..llllum a• foya.lty Zroin uc.h auco well, and wh.i!o •UCh ro)·;i.J1y 1s llO pa.id such .,,.ell ahaJl be held to be a pfooucinii well. l'bc Jesaor 10 have gas !rec oi ct1.<rge from ilO)' i'a• w~li on tile lea.sed prC.!llis~ fof novca a11<l 1na1de lil!'hl.I in the ptmcipal dwcU.utir house on ~d land by maJ<]na-hio own "o<1_necuons "''.th the wcU, tile U6'0 01 ...,d gu 10 ~e at the leasor'a ~le nsk aoo;I apcuoc. J. To pay laaor tor ga$ produced 1rom a,n1 ou 'll'ell and used oif the pr~ml5cs or.m I.be manutactuODa of a-asol.i.ne or any other product a royalty of one- ciMbth lJ.~lrffo~e~a~~tlo~a.1~~ ~~;tli~m~f1! ~~hio;"!a ~~Y~~J: :~n~r ~~"J~:Ja~:.ir.:;~::i.J'1~C,,e. or before on• year from this d~te, thi..t leue "1aU temtio.aie u to both paiuu, u.nle11 the lu..ee i.ha.11, on or before one 7car from l.hU ii.ate. pa7 or t~er to the ieuor or for the lusor'1 credit in First National Bank _ Ban.k a• Bjfle..,..__G..a.loradp, -·--.. -·-·------- or •h "''"u..u' or 1ucC1:a1Dn, wbic.h b~ and u.a 1u1; ..... w•• ii.le leesor'1 aa-w.11 and .-hic.h lhall o:.w.unu, u the <1cvo""l-Ory rci'arul•:a. 111 cJ..4n11:u 1:i· tile <>Wnc.rlh.ip oftheland,tlel'UlDol Tn1 en+.;t _f5"e Ce~a. ner Acre j$Q 25,L ifutttf. wbHn •lla.JJ 01>uu~ ,.. 1 reDtal and COTet t11eiltiv1lcgc ul delernnir tne' com.mcncemcnt 01 epcraQon1 for t!le drUfu;_g c.f a wtll oDe year from =d date. Jn like manner aud 11pon blc.c paynicnt1 or t<:riders the .eco=er.ccment ol opora<1011s for the drilling_ of I well may be rurthcr dc:erred fof like periods successivdy ~~1fv'ti~i;::eJ..';;":':ir~o~ ~~1~~h:":-aid~1~ ;~ ~~~~~~ ~~: .. !!;'J~b~~:i~~~0J~~~~:.~~~o:~f ~~~',~in~"rii:~; ~~.;l";s0 afo~=~~·~~,·~sy :~~ ~Ulyot:;t'.; rigbll conicrrci.1. Jill l'•rwer.u or 1eudcr1 may be maQe by cuccl: or dralt of les1cc or any u"'gnce tl:eoeof, matlen or deli;·cted on or bclo!'e the r_er.<al paying date. L~:iOee w..y at .iny nwc exccutc and nchvc< •o !e.,.or 9r p1ace oi feCOfd a rcle;,11e or releai.c:s <:O~cnng any 1-'oruon o< poruo111 01 the above descnbed prcm•S.Cs and thereb7 J\UTClldcr '"~ lcaM" IO 1uch.p<>n100 or pol"llona and be relieved <?I a.I! ot>li1a.1Jon1_a• IO tbc acrugc •arr~dcrcd and tbereafll:f the rcntall payable hc:rc- 1.U1der UtaJ! be feduc~d,.. the propofuon that tbe acreage covered hcrcm II reduced Oy l3.ld fcl~e Of rcic&Sd. ;.;olW>t.ll5Ul.Ild1ug tho death of_tne lesS<>r, or hi1 succc"""r tn mtcrut, 1.he paymcn1 or tender of 1er.tal.s in the manner provided above 1naU be bi...-,dwir on the l:e1n, devi1ecs, execulOra and ad.m.iniilrat0r1 ol such peroouJ.~. ii at IL!l.J' lime: prior to the disco~ of oil _or iru _on th.is land and during the knn of thia lease, the leo~ee ah all drill a dry hole,_ or hok•, on thi1 la.nd, ~·f=c~e n;a1Y:':":t;e~~~d~ Jf."i;;:r 1:,J 0:Wno~tn!bO:v: b~ ~o~d~":df:du.f! e~t ~~1 P~~~!g ~;~~~agh!0 1ii~r~:~:~u,~11 0.~"~-::W~~~1 rcniab and tnc manner and el!cct tli=I 1hall contwac m force. 6. H hid le-..or ow111 a !cu intcrut in the abore dcKribed _Land than the mt.ire 11.Ild undivided fee simple est;;.te 1b.c:rein, thm the royaltin and rmtab huein pron<!ed for 111&!1 be paid the leasor only In the propomon which hi1 mterclt bear• to _t:ie wbole 1nd undnided lee. 7. Lc.15<:e aha.ll ha~• lhe right 10 u1e, tree o! cost,_ gu( oU, and water pwduced on Ii.Id iaDd for iu operauon the.coo, c.><"CPI wa1er from wclla ol lcuor. Wlilll reque•tcd by lessor, Jenee lb.all bury hi1 pipe lines oclow plow depth. ;'0 well 1ttall be drilled ncare. than 200 Ject to the bouae or barn no .. on u.id prembu, ... ithout the wrin.cn conllel:t of the le..sor. Leo•ee ahaU pay !or da111.0gU caund hy iu opcr-iuon• to gT<>•mg crcp1 on I.lid land. U5sec .ii:&ll hue the ngut at any tim.e 10 r=ove all improvcmcnU, macltinery, and fixtu..u placed or erected by luacc on h.id prcmiou, including the right tQ puU a11d remove cuing. . . . . 8. H the lc1scc ab.all commeocc to _dnU a •ell Within the term of th ... lease or any exteni.ion thereof, the l1:5see tl_ai.l have the rigbi _lo drill 1uch 'll'ell to complttion with rc.aoonable di)lger.ce and dispa1ch, ai::.d if .oil. or gas, or chhcr o! them, be found in paying quanaues, \.!.a lea.sc ab.all co<11u1uc and he in force with IDc like effect u ii 1u~h wtll bad boi:n complettd w:tthin the term 01 yc.ara bere1n first mer.l!Oll<:<l, 9. JI the utstc oi either pany hereto 11 assig?led (and the privilege ol aS><gn111g in wl:oJc or JU part is expre~:y allo'll'ed), the covenants hereof &hall ~:!~.~"'~ ~~~ :j~~· '!~~~~ci'ti.~~:!!lra"'.!~rrt. ~~~b=5f~~~sh.:g:i~_ bti~ ':n~~c":'~a~1.1~~~5~flg~~~ 1::'~ .~~~fi~~ c~r:Y~~i~i~)~a~~e~n ~~ ~=s~;~d~~~~~ this IC11!5-C, w 'll'hole or w pan, lesa..e shall be reliend of all o\ihgauoos with respect lo the awgnt-d portion or rooruocs ans.ic.5 suboequem IO the da•e o! ass•1nr~cn1. 111. 1f the li;a5c<I. pfCIDHCS shall bcrea.llet be ow11ed 1n 1cveralty, or tn .cparatc '!".en, tloe prC11Usc•, 11cv.rthcle•s, >:>all be developed and op~rated a• one lea~ alld all royaluu aocnung hc<eunder shall be treated as .an cntlr~ty and MaJ\ he divided amo::ig a_nd paid to •llcb ~;arate ownen 111 the proµortion that tbe acreage ownN by each 1uch !cparate owner bears to t.':c tntJre Jeaso;n_ acfcagc. There .lhall be DO obhga<1011 oc t_~• v~n oi u:e Jesse_e to ofl•ct .. -•!Is on •eparaie uacn into ,..-hich the land covered by this lcaac may _be locrea[tcr divided by sale, devrnc or othuwisc, o~ to 1urn1s.b. seran.<c 111easunnii or receiving tanks. It ii ber•by sl>fecd th3t, in tbe evt111 llu• lca•c ~ball be a"1gned as to a part or u to paru of the a~o,·e dcS<:nbed Lands, a:id t~e holder Of 0"11er oi any such pa" or parts 1.'lall fa..il Of make (!eiault in th_e payrucnt of ti::c ;>roporuonatc part of t.'lC r~nt due from l:i::n or th=, on a<1 acreage i>asis, such default •haU not operate to defeat or allcct this lease in so Jar u it cover& a p_art or ;>arn of .aid lands upon which tbe Mid le•!.C• or ac_y a.s:gr:ee hcr<of si::all make due payme:it of sail! rentals. 11. l! at any time thel'e be u many as S.lX par;ie1 (or more) <:rilltkd to recc:ve royalti~ under thls I.ea..,, lessee r::ay withhold poymcnt th•t~f uDle.s and until all paniu designated in wnung in a recordable mstrumeot 10 be filed W1th the ~essee I Tru~iec to rece1ve aU royalty pa)'mcnts due hereunde. and 10 c.-.ecute division and tr .. nsfu ord:n on heh"11 of said paiun i!ld their re•PCCIJYc successors 1n title. 12. Ltssec !!hall hue the right to unitize, pool, or combi11e. all or •DJ' part of the aboTe described land& wit!> ct.her. lands iu the ur.ie genera\ atta by :'J~~~ c~;;;g: ocr~~~~~~. 0~n~~~Ji1 ~ia~1 !e"a~~~~~en,;t °..'uJ',Pj~a~~~h a~~~;,"~b~7 1!"Js,_g~~ti~~!~ a~~ih;;;:~!;si~:~· Lf'~~"J~s~0 .~:ii'b:t:fe~~ .. d a~~Y~:~ ~ confo;"m to the term$, conditions, and provision• of such approved cooperative or unit plan of develcprnem or opc:'l!o:on and, po.rticularly, all drillicg and de,-cloprneo.< oequir=enn of this !cue, uprus or ;,,,plied, shall be utisfi<d by compliance .,..,th the <!ni~ino; And c'c;e:opment requirements of •ucb pfao. or a;;nemc.'lt, and thi• lease sbaU cot terminate or expire during the.life ol such plan or agr~cnt. In the e.-ent t!!at said above described land• or auy part t~eo.-of, sb.~!l l:cr••lter be ;,r•ratedyndu any sue!! cooporall\'c or unit ,flan of devcl?pmcnl or oi:.~atlon .,;·hereby tl;e proC::ct'on thereiror.1 is allocatc.d to diiler<:rit &~:~~o;Je~1 t~f e~~ bcv~~ga~~ 8!1~ l~~~~g thb•~n111;,£J;~~t\~~ma~~~a~eartl~uf:{ ~:~coui%ntda;~ ~-~khd i:11;~U~lj~~a~d pa~rJ 0 .. ~t 0 :0 c~~i"o1:~!r ';':..c'i°~f 1 'l:~d17 ~:d p:~~ ro)·,.:ty f'H<Il<llt! to he r:>~do bercunder to lessor sb~l_l be based upon production only u &o allocatffi. Lusor •hall fo:-:lla!ly e;-o;:prus lessor'• co11'ent w any cooper~~~· f ~ tl:'~\~~:~ •• ~1 o1e~~~~~~;~~~ 1~~·~~~~.~tia;iP~fdre~~~i~e~,~~~urabpi~d~h~ ~e:;,,f;;0°{';~e~:-~~t~~:~~;itc~•~dti~f o~te g5a3smaen,T 9c0t~,e~~'t~~t,,,J;, 1 i::::~ shall have t~e right to co<nbine the leased prttniscs wa!i other prcm:s .. in tbe !lmc general area for the pur,io~ of ope:11ting and maiotaimng repressunng and recychng facilitie~, and for auch pu,.-pose may locate such facilities, including input w~b, upo::i t-':ie leased pre!:!i~s, and to royahiea •hall be pa)·able htteundcr upor1 any gos u•ed for rePre55uring and recycling ope,,:,ions bor.efiting the leased premise•. )4. Lesoor hereby warrants and agree• to dele::>d the ntJe to the !and he:e1n deicribed and agree• tbat the les!<-e, at iu option, mar par .1nd <!isc~arire ~~ia:i:d":~ ~~"J;f:~ ~~ ~~~erb~\d~ ~~i~~J'!~;e'j,eedr,eo"t .~:Je~~ ~ci,,';bu~~'jt~}~b/~~;jy~~so~\~dc ~ir;~~a~;~·oina~;e~Jch: ~~;~~s;:, ~::i11o;~~·~~· ii~~h:~ly ~~Y~~; or re<1<a!s accn.tiog hMcunder. JS. All renli'l paymert!I which may fall due under 1l>J9 \case may be made to.-. ____ .. _,_ .. ___ , ......... ____ _. ............. . one of the abo~e named l•OSors, ic the manner he.e.ifl s:ated. 16. 11 within the ~:-imary term of thi• Jcaoc proju<:tion on the lel!-ed premise• shall cease ir<"u at.Y c~"-><, '"'s l•~H shall nut tec:m~.atc prov1ci•d op•"'· lions for tl:_e drilling of a well shall be co"'mcnccd hkrc or oc the next cri•cing rental paying da1e; or, pro,'lded le!"C: begins or "'"'nts tbc paYm•nt of rentals in t~e manner and amount her•\nbeiore provided. II, after tl'e expir3tion of the 1?rimary tenn of tl-,is le~se, pr~C~c,,on on the kased premisc3 1hal1 cu!IC from any c:iuse, thia le3'e !!'.all not tenninate provid.d lHsec resumes op.,auons for dnUing a well whhin si:qy (60) ~an from such cc!..,.tioo, and th.ii leue shall r'r,'_ain;:t'i.'°:;~J.iu~h'ft ~~'l/i'e0a"."ecu•t~i~ ~~ .. ":'rc~eo~~;::,;~d" o~"~;;~cfi~df~:if~i!~~l:~ t1!~f~~mi~ t~eh11ol~• ~~n;;, ~p•a;;""a~~".~f~i;s~i~;\';~d covena,,ts, conditions, or 1tipul3Con• unnl it •hall have lirot bee" finally j-Jd;_ci_ally determined that ouch failure e"-nl..!., aod aitcr such f:n~! Ce1c.-mm1tion, lc.Uec is gi~er. a reasonable time therc.irom to comply with any ruch covenanu, conc,,,0,,1, or .stipulation&. shan n~~· b;\1~~~~~!j~d;:U~b~iep~~inr:o;;:i~n~~r0 /,:~:: S~ir 1ilh61~ ~ne J~~i;~! l~r a}~i\~~~r~~ ·~;,,,'~i;e tt"e~:~-:i~~'i't~voC.n";!T:~~~ '1'~~r!~:n~:f'~;;".;~'·;fns~ic1~1 ifa\'/~;~ i1 the reruit of any rnch IAw, order, rule or regulation, or ii ouch compliance ;, preve11ted by or failur.'" th re!U'.t cf i11abili1y _of l"see through no fault of it! own, 10 ob1ai11 .ufficiec! aud ll!isfactory mat~rial and equipmer.t to ju•ttly the co111meoccr:::eri1 of drillir.g-'lperat1ons or 10 connnuc production of oil or gal /rom the lcas.ed Pttmi•eL 19. T~is kue and 1U ir1 Urml, conditions, and sti:->u!atioru1 shall extend to and be bindhg on all succesStJn of sai~ !o•SOr or Jesoc...,. ~Hi~~io.P~i~e~ ~~ ~~t~e.~d'°~: d~;b~Je~~/ij~[·,b~~e c;c~u~ them. ii there te more than one, be:ct>y :-e.ieo.e and waive tbe ria-ht of bomutead. effL~~~- .~ ' ~ ---/ ~~/ =-:r;;;::::,•_t;/;;,~~=:--= Boo'< 293 ?c5e J62 ST ATE OF ----·---·---·-·-···-------·-i ... County of--·-····-----------·-------- ACKNOWLEDGMENT On this. .......... day of.. . ···-· 19 .... _____ , before me personally appcared----------- ···---to me known to be the person __ described in and who exeeatcd the foregoing instrument and acknowledged that Given under my hand and seal this .. ~ly Commission Expires ..... . ........ -.. -e::i::ecuted the same as ____ _ . ....... day of ACKNOWLEDGMENT-MAN AND WIFE STATE OF ___ .C.alo.rad.o. ... -··-···-····--i County,oL~.U:...._.~.?.-.!.~J..~.~-i;t_________ ••· ... free act and deed. ....... , 19 .. Notary l'i.Jbiit ·'4:~ii!...(~--; ___ .. __ day of June , 19. 56_, before me personally appeared ____ -· __ ,.::.'' ., ... -;.• ··:, : •• • 'e..5. and Le.a.no.ra . .R.ee:v.es __ ----to me known to be the person ~L descnbed in and who executed :~~fll&n.A Jliffrµment and acknowledged that th~y _ --Uecuted the same a• the.1r free act and deed, mclud1ng the release •• 11..'a!Vet of \?ie nght of homestead; the said wite havmg been by me fully appn~ed of her right and the effect of s1gnmg and ~~ :. '-l~g the said mstrumenl ,fl! ~\_. .,p P\~~~r.ID_!' hand and seal this .;::2 da) of June . 19 56.! \ ,,_ .. ~lr·.~'.E. ~tnm ~-3, L~SZ. '":?!~ .Jl. ::n.._,., ""' '----'~ , ·-.;;.-. ,.-, , Q (/-Notary Put.he I;. f Ci\\~ ' MONTANA ACKNOWLEDGMENT County of On this .... -.. ,.,._,_day of .. 19. -...... , before me .. a notary public, personally appeared known to me to be the person ...... whose name .... - executed the same, ...... subscribed to the within instrument, and acknowledge to me tha! .. Witness my hand and official seal. My Commission Expires .. ,, __ _ I STATE OF ... County of (() .~ ~ 0 ' . ~ :;- ~ a " 0 0 Not;iry Public within and for the State of... Residing aL--.--...... COLORADO ACKNOWLEDGMENT The foregoing instrument was acknowledged before me this .... -.... -day of .................. -... .. V."ITNESS my hand and official seal. Mr Commission Expires __ P. 0. . ... ., 19 ... z ' .... ,by .......... N~t~·-~biiZ-" i 1:i l Recent! So. 95-0. ~id·Contineor--88 Rnioed LoiT,;';.,.i C 'JJC!l 1.,.,ha s. S. i\eegen, .\fioiai L•ur. I')/~,µ t./?- Book .?~J P:i.g'°' JOO Oil and Gas Mining Lease THIS AGREEMENT, Entered into thls th~,. ......... o .............................................. day of-·· between ~rd er 53 ...................... A. D. 19 ....... . hereinafter called lessor, and.··-· J.o.e...T •.... Juh1m .. . ......... ·---·-· herelnafter called lessee, does witness: I. That lessor, for and lo comideri.<ioo ol the sum ol ...... ~-~.P. ..... 9.f.':..J. .... D.9:,(l.:;;!,,.. . ........ -........ .... Dollars ($ .... l.9..!.Q.Q __ ,_.) in.b:u:id paid, o.f!d ol the covenaota and a,n~ementa hereinafter contained to be performed by the Je,,.ee, ha. tbiA day grant..d and ln•ed and hereby .RTant.. leasea and Jen unto the lessee for the p~ of mining and operatinll: for and woducing oil and gao, casinghea~ ;p.• and cuinghead gaoolioe, Jayin11: pipe line., hulldinJr tanks. storing_ ?ii• building powers, Btatio:a, telephone Jin .. and other structures thereon tD produce, 1ave, ..u~ care of and manufacture all Df tuch nhstanc .. , and for hou1ing and boarding employe..o, the ~o!low!og describe<:! tract of land lo -· ..... '.!.S;}.~t°J .. ©J .. 4. . County ..... 9.9.J.Q._r..?-.;1.Q ............... to·wit:_ .. .. . .. $?·~Jf.::& ..... C?.f. .. :'.:?.~g .. tJ .. ?!'.-.. _ . .?_§_; __ . al sq ... ?.;:t.F.:;;;~: ... of Sec tlon .g-7.L ... T.?..Y··.'P:.~.h.~.P .... -~.--.. $..~ ... t. ... ~'.~.~g·~·--·'.?j ... W • . /_AA.S..9 .... ;?t_:::r~ ... _9.f. ___ S e:.~ t.~ .9.n .'.? ..... ::on.4. .J•-9 .. t .... ? ..... 9..f. .... $.~.9 .. t.~ o.n .. .:i .. ~., ... :.Qj:ffi.$.f\;1..:9 ..... 7. .... .-?.~ . .J .... DL~?o-=.~ ... ~ ~ ·.·1. "---. : ;,..!_.: 111 Section .................................. , TowMhiP ........ Rani:e .......................... , and cootalni1111: __ .. g.7.?. ................ --· ............... acree. more or leu. 2. ThiA lease shall remain In force for a term of ten (10) yean and u long thereafter aa oil. l(U, c'-"n;tbl'lld gas, cuin1rhead 1ra.;oline or any of them la or can he produced. a. The lessee shall deliver to the credit of the lessor n ronllY. free of cost, in the pipe line to wl:;''; 1.-s••e may connect Jta ,..ell8 the equal one·e!11:hth part or all oi_l produced and saved Imm the Jnoed Dremi•.,, or at le51ee'• option, mar P•r to the lessor for ''"'· o~e~ighth royalty the market price for oil of like grade and rn.nty pno•-ailing on the dar ouch oil io run into the PiPe line, or Into otoraKe tan~s. 4. The lessee ohdl pay lessor. ao royalty. one·eill:hth o! the Proceeds from the Sa!e of the gu. u sue:: for ll:BO from wella ,..here gas only lo louod, and where not oold •hall pay Fifty ($;;0.00) Dollar; Per annum as royalty from each such ,..ell, and while such royally _,'"paid such well shall be held to he a producinll: well under paragraph numbered two hereof. The le,,.or to hue 1ras lree 1!T"C!li}p;e from any It'&< well on the :-~,.,i prem~• for stovo and iruide ligbb in the winci· fe~J.,,~w1~~in~ hg:~u~ •j;:~a::Y b~;l m:e~n:11 ~i~,:;nh;'t~:'l~~~e ~~~h ~~e m':~!!J.1:i~r~·~1 ofussa0l~n~,a•0 .to•~Y• ~,'~:/ ;;~~i;~ :lero~!f cy:n~n:~~'i.5tl; !'J'•~;""r:!.r~ll, . .'!~ ~j such ga>. If &aid gas is a~ld by the Jessee. !hen as royalty oDe-eightb of the proc•eds of tbe .ale lhl'l'eof. 5. II operatioD.'I for the drilling of a "'ell for oil or gas are not commooced on &.aid !and oo or hdo" one year from thlo date. thta leue shall teno!o.ate u to both P•rtleo, unl•u the !eutt shall, on or beforo one year from !hie date, pay or tender to the lea.<or or for t.':e lessor'• credit in the ?irst )rc.tio!!.~:1 ...... _ .. ___ ... -.......................... .. Bank at . .... ~~.; .. f±g.J._~Q.~.2.;r..r_J9. ...... -.. ·-··· or it• aucce•son. which bank apd itl ""~"'"°,.-, are the lessor'• agont and oh.all continue as the depository oi any and all 1ums payable under thU l•aoe. rt1tll'<i! ... of chan1 ... ol owne..,,hip !n said land or in the oil and itaii, or in the notalo to accrue thereunder, the sum ~I ..... '?9. ..... G .. ~}Jt .. $: .... 2:.~.r ... Xog.f.~ .. ...... .......... Xl#lilU\. (l ... 0.1 .2-5 .... -.) ,..hich &hall operate ao rental and corer the prt,·Jlege o! dder:-.~g th• commencement or drilling oporaliono lor a period of one rear. In like manner and upon like payments or tenders, the commeocement of drllling operaho111 n:a1· be further delerred for like periods suC<Oe.sJ•·eJy. All paymenu or tend•ts may he made by ch,ck or draft of lessee or any a .. io:ntt there-:of, mailed or deli•·ered 0 ~ or before the rental payinlt' dat... Notwitbata.odinJI: the death of the l-or. or hta oucceesor in lnt•r.st. the payment or tonder DI rental• in the manner provided ab.J-,o shall be binding oo the heinl, dev!c..eo, uecutors and admini<tri.lon ol 11Uch pen;o11. 6. If at toy time prior to the disc:o<ery ol oil or gas 011 this land and during the tOTm of thii lease. the les.ee shall drill a dry hole, or bol .. on thla land, thi• lease shall not terminate, pro.-ided operation• for the drillinit of a welJ shall be commenced by the ~ut ensuinll: rental pl)'inll' date, or Pro>ided the !eSSH be- ~n~e:~~"";:;:'de\~•J:;n~~D!0df .i;~:ii~·sh~~n~~~t~~e a~°io~~e~~reinabo,·e prol'ided; (and in thie en1a che preceding paragraph• bereo! xovernlng the payme.nt 7. In cue oaid \essor owm a le.. inter.rt lo the aho•e describe<:! land than the entire and undh·id•-~ !ee •imple eatat.? therein, then the ro:raltieo and rental8 herein pro,-ided for Mall be paid the oaid le<sor only io the proponlon which bis interest bearo ID the who!.; •~d uodilided lee. S. The le"'ee shall han the riKht to use, free of co•t, p._o, oil, and water found on said Iaod for i,; ?O<rltion• thereon. execpt water from the wells ol the l•ssor. When required by leasor. the I~~ ;hall bury pipe lines below plow denh and shall par for dunog-e c•~•ed by its operations to i:rowin11: crops on said !and. No well •hall be drilled nearer than 200 !e-et to the house or ham now 011 .,.;d premises without wrinen c·:~><r:t of the lessor. Le.,ee shall ha«e the ri~ht at any time during OT after the upiralion of this lea.,, to remo,·e all machinery, fixtures, houoe;, builJings and ofr•, .:ruotures placeJ on ,aid premises, includinll: the riKht to draw and remo,·e all casiop;. 9 If the ertate ol either partr hereto is a"ii:-nod {and the pri,·ilelt'e of assi1mini: in whole or in part ;, upressly allowed), the covuants hereof shall exteud to the heir!, uecuton;, administrators, succes.ors and a•>iJn>" but no change of owne_rship in 1be land or w tte rental• or royalti .. &hall be binding on the' lessee until after notice to the lessee anJ it bas been :um1ohed "'ilh the written transfer or uS1gntt:ent or a certified copy t~ereo!. 10. H the lused prem!•e• shall here•it<t be owned in severalty or in separate tracts, the ptemi<es, n•Hr:heless, shall be d.-·e]oped and operated as one l•ue •nd •11 royalties accruin" hereunder shall be treated as an entirety and shall be dl,'ided among and paid to such "~"'""te owners in the proponioo that the acreagr owned by each •ucb separate ownrr bearo to the en<ire leased acreai:e. There o.hall be no obligation on the part of tto :.,..., to olhet welle on separate tract.e intD which the land covered by this leas• may he hereafter di•;Jed hr .ale, de1·ise. or otherwise. or to furnish separate .,, .. ,.,,.;c.1< or recei,·ing tanh. It is hereby JJUeed that, in the e\'eDt thi• lease &hall be assigned u to a part or as to part• of the abo\'e described lan<!s. and the hold<r '" owner of any such part er pan• shall !ail or make default rn the pa~m•n< of the proponionue J!•rt of the rent due from him or them, ouch default shall r.ot <~e"1te to defeat or alfect thiA leue i11 so Jar u !t covera a part or put< o! ..,id land upon ,.-bich 1h• said les;;ee or any a"ignee hereof shall ma.ke due pa)·ment of ,..,; rental•. If at any time there be ao many ao lour partln entitled to reota:.O or ro)·•lties. Je .. ee may ..-i!hhold payment• thereof uni .... and until all pu!ie• designate. in ·.-ruing, in a recordable inurument to be flied with the l""••e, a common agent to recei,·e all paym•~t.. due hereunder. and to •Xecu1e dh-i•ion and tran&fer orders c~ ~.half of said parties, and their respective au~c~ots \o title. IL Lessor loereby warrants acd 1i:re0< to defend the title to the land herein described and anee• that'~' 1«>••· at itl option, may pay and discharl(e any tu ... mott~ll!l .... <:Ir other lien• nl6tin11:, IHied, or assessed on or ait•inst •ho,-e described lands and. in Hent it ex.,c:>es •Uch option, it shall be subrogated to the righll of -"'1Y bolder or b<>Mers thereof and may reimbur•e itsilf by applying to the di.charge of any •neh mortgal(e, ::u or other lien, any royalty OT rentals accniinlt' hereunder. 12. :Sotwlthst~odlng anything in thi• leue contained to the contrary. lt i• expressly ai;re..d that if les.;<e shall commence drilJ!ng open.lions at any time wh!!e thi~ l•...,. !1 in forco, thi• !use &hall remarn in force and it& term 1ball continue so long as .ucb operatiot.o "" prosecuted and, ii production nrnlu tbuefrDw, theo "" lol'll: IUt production continues. th~ ~~lli~~ -:1~;n,..:n• .~ib7 c~~":e~:e~h~.i;~eo;r::u1~!0 ~.~~ e~:,i~~"::io1~J":.~~g•hd•1;e ~e~~ ~~~rid~~r 1:,~~· ·b~\~.1 ~r"er:.~~1 •• n~tete~~r~~t P;i"~edn'~.h'Pi"i, .. i~~n~ ner and amoUZ1t berelnabo•·• pro•·ld•d. If. after the upiration ol the primary term o! this lease, produc<'.on on the le .. ed premises ohall ceue from any cause, this leau •hall not terminate providod 1...., .. rrsume• operations for dril!inj{ a well "·itbin oi:uy (60) d•Y• from <11Ch cesi;atioo, and tbia leue ohall remain in forco dur· ing the pro.ecutioo <lf "°"b operation and. U production rnult• therefrom, th•n u \on11: u production contin·~.s. H. Lesatt mPy a' ~or tiroe o...i.~uu•• ,,Jiia iu"" Ly U•li·~rinK or mLiiinit a release thrreof to the ;._..,,,ct, or .,1 vw~"'~ • '"'"....., "'"'""' "' recDrd in the prop.r county. J 5. It '-' •freed that thla leue shall n••er be forfeil•d or cancrlled lor bilurr to perform in whole or ;,, part any ol tte Jmp\led CO>enant., co11dllio!ll, or rtlDu· latlon• until ~t ob•U ha•e first been llodl.• Judicially d•lnmio•d that •uch la!lure exists, and after such final d•rerminaUoa, lel.'lee la Jl:l•en a reaeoMble time there- frytm to comply with any tuch co•enaot... condition•, or rtipulaliooa. / 16. JI lo hl'l'eby mad• the duty of tho le.a.e, and the Je,,.ee l• emJ)O'lfered, in the op•ration ot the dem;!ld prem!1e1. to pretent economic and phy•lctl wute. to delln• the bDUndane• of the POOi upon which the demioed premio .. Dr uy part m•y be •ituate, to conserve <-he nooervoir energy o! the pool, to protect and con~rm tbe CDrtelative ri1rht.. of all the owners in the Pool. to de>elop and l"'ter marlr.eu for the produce. of the pool, a.nd to enter Into a11:reement1 with other owvers of the ~l lo CllTY out the !ore11:o!ng and to unitize the pool and a\\ oil, itU, natural g~ and •••oclated fluid bydrocubo1:5 therein. aD that the pool will be managed and oper- ated ~ an entirety, and all unitized suh<rtan<"ll produced from the Pool •hall be apportion..<!. and aHocac.-d on 1.11 acreage ha6i11 to the ... veral tracts cowprillng the ~1. 17. Tbl1 le-and all !ta hrm1, co~dniorut. and atiplatlorut ah•ll e:rtend to •nd be binding on all JUccu•cn of u.!d le610r or luaee. r.; WITNESS WHEREOF, we oill:D the d1y and ye•r lint aho•·e written. STATE U> .................................................................. } County o<......... . .......................................................... . "· BE IT REMEMBERED, That on this . . .... day of .. Public in and !or said County and State, personally appeared . :Oook 233 Page JC'l ACKNO~'LEDGMENT. Applicable where lands are in Oklahoma, Kansas, Nebraska, South Dakota, Arizona and Nev; Me::dco. ., A. D. 19 ...... , before me, a !\otary to me known to be the identical person ... described In and who executed the within and foregoing Instrument and acknowledged to me that . executed the same as . . ........ free and voluntary act and deed tor the uses and purpoaes therein set forth. In Witness Whereof, have hereunto set my ofll.cial signature and afll.x:ed my notarial seal, the day and year first above written. 1 t(.\\•U•i"lf..••• . ;:.\\ d~ ·~. expires ......................... . . ,·~·,lq .. ~ Notary Public . . f ;.:~-··.·.'"' ~~*~ . ·~.:::·· ······:·:·:·:·:::.:.}SS. ACI~NOWL!::~G:.:::;;T, 7.':•vmlng or Colorado 1!"':~ . W ~ N Pbt St ;\;\~ ~ ~ j[ .... . <?d ~F'~ountyand '.ta,dob"abyo"tlt~tbat t':.;~~~m~. ~ :-,; me to be the personJ. whose name ........................................ subscribed to the within Instrument, appeared betore '> .,, • .,,. ;~ ... ~~·.. ~ ·.. r,.,. -~ n.e"Brson and acknowledged that-··· .............. . . ''"' ~ ·\'." ff ' -'' froa and volontocy aot ond '"' '°' Iha um and P"'"°'" thaca~ My ::::: •• :: :::1:.:·' ~~·~·;;~;L>Z ~~ d•Y ''d~)L~:::;::~:-3 signed, sealed and delivered the said instrument or writing as .. '· .. , STATE OF ... County of .. ACIL'JOWLEDGMENT, CORPORATION Before me, the undersigned, a Notary Public in and for said County and State, on this .. ... day of ... 19 ........ personally appeared to me known to be lhe identical person who subscribed the name of the maker thereof to the foregoing instrument as its . ·············································--···--················· and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set forth. Given under my hand and seal of office the day and year last above written. My commission expires Notary Public. P. 0 .. ~ .... Cl:> " CZ: ~ .... .... ·~ = y z -*:-; z -~ ~~ == 0 0 ~ " Cl:> .. :') CZ: c-:i = :"'i = O!) z ...... CZ: .... -ci z Q OKLAHOMA FonM OF J.CRSOWLEDGMEXT WE£nE GR.-ISTOR SIGNS BY ll.\RK SOIT-\\"itb reference to Oklahoma lands, ..-h•n thi; in1<rument is siirn•d by a P•r>on who cannot ll"rite b\.s name he •hall execute the same b) hi• mark. aud !ii,; n1me •hall be ,..ritten neu 1ucb mark by one of t«"o per.ans ,..bo ia,.. such mark made, who shall write their names on ouch insaum~nt as wirnesso.. STATE OF County of.. ..................... }" On this. ............. day of . . ............. _.\.. D. HI ..... ., before me, the undersigned, a Notary Public. In and for the County and State aforesaid, personally appeared . •ntl idetllical per~on .... who execuled the within and foregoing instrument by . of and as witne~ocs. the said . Signing the name.. of the said and acknowledged to me that .................. . .. executed the ;amc a~ the uses and purposes therein set forth. Given under my hand and ~E"al the day aud year last abor<' written. 1'.ly commission expires to me known to be the mark. .. in my prrsence and in the presence . free and voluntary act and df't'J Cor !\oiary Public. ~~~~~f:J~ .V \~:.:.6'.;: ': -'fu$t17-'. ~oor~e" ~,c-r1-. 'fr .,1 l" .. ,, ( .-. ~-~--~, ~~~-- ., _175 Oil and Gas Mining Lease I{ "' Co-431--v THIS AGREEMENT, En~ int.o this the ____ _l_? ___ ----daY oL._ ___ ~~Ve~b~-~------·-• A. D. 19.52__ between Ber~ Eatoa, aad Mollie Ea\oa ------------·------------ -------------------------------------------• hereinafter called lessor, and ---------Joe T • _Jullaw ------------------------------hereinafter called lessee, does witness: 1. That leMor, for and In con•iderat.ioo ol the 9\lm oIJSn .dollars e.nd D..o/1.0_Q __ Q_ent_s_ _______ ~} $io • QQ_._) in hand pajd, 11.nd of tbe cov~nantll 1.1:1d atnement:o be....U.atter contained to be performeod b:r the l"611tt, ha.s thit d.o.y i;rn.nted and lnm and h.,.,.eby 11ro.nta, !eQes sud Jftl 11nto the leoaee tor the p~ o! m.iniDll" and opuatir:ir for and produoinll" <>ii and lf"S.$, C81.lini;rhead gu 1.nd ca;il111rhe111.d lf&M)line, 1.-rinl' pipe Jin.eg,, bllildinll tank•, •toriDI' oU, bnlldini;r powua, etatloDI, U]epho11e linea and other atruotu:"" thereon to produc-e, uve, take ea.no at "nd manufacture all of aucb 1ubiit.an"""5, and tor bO<Uillll' and bo&nlilli' empl01-, tha followinr deacribed tn.ct of h111d in_.:__G&-Pf-1-&1-4-·---·-Countl'---------·-----··---~-to-wit:---·- 2T. Tp. 6 s. fl• 94 II• .· - !n Seellnn _________ , Towntblp--6--3 0 , Ranll"'----94---W...--':&nd con~·~li" XJQYXt___gQ-""""', more or J..,a, 2. Thia; lea1e 1ball rem.in in forc-e for• '!!!rm of ten (10) Ye&111 and u lonr tbuu.tte.r a. oil, r-u:icultiirh""d gu, caaina"bead. ruol..lne or &lly ot them lo or oan b.. prodw:ed. •· ~ . .-· 3. The !Ha"" ahall deliver to the credit of the le&aor u roralty, free of coet, in th& pipe line to whidi J.,,..ee may coi:u::ieet It. wella the eq1<&l. one-eighth part of all oil produced and oaved from the le&:Oe<l premloes, or at les....,'• option, may P.,. to the les•or for aucb. ou~hth royalt7 the muket prke !or oil of like en.de and gna.ity prev&iling on the day auc.h oil iB run iuto the pipe line, or into etoraga l.a,llkA. '· The 1 ..... ee oball pay 1,,.,or, ,... roY .. lty, on....,ie-bth of the Proceed! from the eale of the e-u, u euob !or 'iru from wdla where KU only is found, a.nd where not aold shall pay Fifty ($50.00) Dollan per annmn"" royalty from each such well, a.nd while auch roy&Jey-is I() pa.id euc.h wall &ball be held to be a produdrig well ender paragn.ph numbered two ber<'Of, The laoor to hue Ii'"" f,..... of charge from any K&! well on the ]e8.$ed premlll• for •llo'l'ea and lnaJde Jighta in the princi· po.I dweUinli' house on said land by making his own connection with the well, the me of e.aid 8'U to b.. at the l""oor's Iola rial< and!upen.e. The lesoee ab.all p&y to t .. sor for 11"1'• produced from &Ill" oil well Lnd n<ed by the leasee for the manufacture of &:aaoline. or any Othar prodw:t, u ""'alt)', on-i!lhth of the market valoe of such li:B.$. U oaid a-a.a ill •Old by the Jeo.see, thetJ aa royalt)' 011,....iirbth o( the 11roceed.! of the oale thereof. 5. It operation• for the drillinK of a well for oil or B"a• are not commenced on •aid land on or before one 1e.r from this date, thlll leaee •h&ll terminate u to both po.rtln, unless the Jes•"" ahall, on or before one year from thill date, p&y or lender to the lessor or for the Je,..or'e credit in the. __________ _ First National ______ Jl .. nk at __ fil·fl e, CQlor.~•yd~o~- or ;i;s succeuore, which bank and ita succes"<>n are the lesoor•s al!"ent and d1all continue u the depository of any and all aum& payable under this le....,, ~a.rdl""• ot ohan!lea of ownenhip in said Jaod or i11 the oil and ga.,, or in the rent.ala to accnie thereunder, the •um oL.2.5----C.en.t-S----P-e.l'------ac-r-s------ ~$ __ .Q.._25. _____ ) which •hall operate u rental and CO>er the pririleire of deferrinir the commenceme11t of drilling operation• for a f>{:riod of one year. In like maoner and upon like paymenta or tenders. the commen<ement of drilling operatioll:!I may be further deferred for like periods suC• cessively. All payments or tenden may be maOe by ch""'k or d:ra.ft of Iese.., or any o.s•ignee thereof, mailed or delivered on or before the rental payina-date. NotwiU..tanding the de.th of the leaaor, or hia ouecenor in intere;t, tbe payment or tender of rentals in the manner provided above shall be binding on the heirs, devise.es, executoro and adminilltratc>111 of. ench penon. 6. H at any time prior W the dlace>VUJ of oil or gu Oil this land and dul'ing the term of this J....,.e, the Jes>..., shdl drill a dry bole, or hol,,. on this land. this leMe shall 11ot i.erminate, pro.-lded opentiono for the drilling of a well shall he commenced by the next eru;uinir rental payinK date, or poovided the lessee begin• or resume!I the po.yment of rent&b in the manner and amount hereinabove provided; (a.nd in thio event the pr~illll" p•l"all"nPha here()f governina-the pa)'lnent ol rentals and tbe m.annu and effect thereof •ball co11unue in force). 7. In """" aaid l<'!•Or own• a leslJ inte."""t in the above deacribed land than the entire and undivided fee simple-estate therein. then the royaltil'$ and rentals herein Dto,·ided for shall he paid the sa.id la.or only in tbe proportion wbic.h bis interest hul"'il to the whole and undivided fee, s. The lessee ohal! have the right to me. free of coet, gas, oil and water found on oaid land for its o_peration• thereon. except water from the well• of the 1 ... sor. Wben requi,...d by leosor, the 1 .... ee shall bury pif>I! !in"' below plow depth and shall pay for datn"i:e eo.u.se<I by ita operation• to vowing crops on said ]and. No .,,·ell ohall be drille<I nearer than 2UO feet to the howe or barn now on uid premis"" without wrttten consent of the Jes.or. Lessee shall ha,-e the nKht at any time durinir or alter the expiration of thla lease to remoH all maehinory, fi:rtures, houses, buildings and other otruotur"" placed on oaid premises, in· eluding the right to draw and remove all C'-'inir. 9. U the estate o! either party her-elo is ""signed (and the privileire of. u•iirnlnir in whole or in part !• expr .. u!7 allowed), the covenantll hereof shall extend to the beiN, e>;eootoro. admini.nraton, succes•ors and a.ssign•. but no change of ownel"'ilhip in the !and or in the rentals or r<>?alti"" shall he hiodinii: on tbe lessee until &ft.er notice to the les•.., and it h&!l b .... n furnished with the written transfer or sMignment or a <"<'rtified copy thereof. JO. U tbe Jessed premiaes •ho.II hereafter be owned in severalty or in separate tracts. the premises. nevertheless, shall be developed and operaW "" one lease ~nd all roya:ti•• accruinir hereunder •hall be treated •• an entirety and •hall he divi~ed among a":d p_aid to ouch sei>&rate ownen in the proportion tho.t the aort'age owned by each such ••Pante o,,-ner bea'" to the entire ieued acreage. There •ho.JI be no obhgauon on the part of tbe le .. ee to ofbet wells on oepa.- rate tra..cta into-l!'hich the land eovered by tbis leue mar he hereafter divided by sale, devise. or otherwise, or to fun:ii.!h ,eparate meaauring or receiving tank.o. It i• 'nereby airreed that. in the event thill lea.se shall he S!Signed a• to a part or as to paru of the above d .. oribed lands, and the holder or owner of any ouch part or pal"'ta shall !Bil or rn.u.'ke default in the payment ot tbe proportionate part of the rent due from him or them, aneh ddanlt a.hall not openite to dd""t or affect thill lease in so far u it coven a part or part.o; ot ,aid land upon which the uid les•ee or any aui1mee hereof ahall make due payment of said rentaJ... If :,tri~~,,'g,ti\:eath~.1d:bie ~rtn:.,,:.;f"t: \.."1:ie.i"~i~~edth1; l~~!!.13 an~o~~a2~'":g.1~': ~~!;,,:i~l~0~~~:;'i:"~ethb~J':)."'!ndnt.i "!~u~1 Jl:f:l: ~~~~aar:~f~~ orden on behalf of oaid partJ..,, and tbeil te!P"Ctive successon in title. U. Les.or bereb1 warrant.I a11d aneeo to defend tho title to the land herein described and agrees that the lessee, at !ti OPtlon, may pay ai>d di3charve &nl" ~"~~~~!;~~in°; :.!}:r 1~~nbJJ~i'tt~~~d0~~·~~b~~e0 'iuifiib;\~~~i'..:""~rifh": Jls".~~d·oina~·~~J! ::::=.,"~ ~~ti~t'j;.Jt1i::.11 a~ 8~~~1:! rentab aconiina-hereuiule:r. 12. Notwtt.h.otand..illll" anythi~ in tbll leua contained to the contrary, it ia upreeely ureed that if I-shall commence drlWnc o;>Peratlo111 at an7 time wh~ th.is leue ia In force, tbb leue oball ro<maln in fol"<'e and ita term shall continue •o !onir u ouch operations are prosecnted a.nd, lf pNl<[uctiou re•mlta I.her.... from, then. .,. Wnw u production continnea. JS.. It withfn the prhnl.ry Urm ot thil leue production on tl>e 1......,e<1 premise& 1hall eeau !roi:n any <:a.me, thil Jeue .t1aU not tenninat. provided oP<'rat.lona for the drilllnl' o1 a wall •h..tl be eommenoed before or on the no:rt enanlnir rentaJ PAJill.li'" date; OZ'.·Pl'Ovided i-.. be8ina Q!'-~.U.. JlllJ":llil'llt ot rl'lltala 111 · ~~ ':::!~Ui'i:d1.::~i.!u0::m=.t";!!~fa.f~ ,!':r,,".,?;::~~~ ~~ ~~ a~n otwi~ ~:; fttf'd!';_n 1:m ~1:U~~J:i,1.1:,4•1u;1f. :! ~ Nm.all! U. .fo...,. dnrlna" t.h pJ'Ql.eeUtl.on ot •nch operaUon.t and, t! production tfllluita therefrom, then &A lonr u prodvet!Ol:I continua. 1'. _r--rri.a# __ a.t •. &UJ:-.time •lll'"n!llcler'\bla 1-h:r dellverill.li'" or .....uJ.nir •rel .... ~f to U..-lmiiiar, or.hi1'WibiiCAr.;~-~ ot !9COnl fa~ ~, eool~:·~~~\b.~""·aha.U II~ be forlalted or canoelled tor faDlll"I to i>utorm. in whole or fa .put.;,,,.· of l~.:-hnpll~ e<mmantll, eonditfona, or ~•tlo:ria· 11111::ll tt. U.all. baTI fir.t Men fir.a.ill". """°"'.'b detennlned that •aeh. fdl.1;1re Qfata, an.cl &ft.r 1\ld! fui.a.l ~udon, ies-l.t ,.;_,..,, 1 ·reuou&hLI theretrom·to COlllJ)b wftb &n.J' ~ CO'l'enkllta, ~Uons, or atipnlatloaa.. . , , ·-'.'---· ·· ··· · .. • ~r-lt b ~made the dat:r of tbe l!uee, and ~-i-la empow~ fa tbt Oi-atfon of the dfllllud pl'lmiMI, ·to~\ OOCl?IOl:lllc and pb_nte&l ..... i., ti) oe:utl1 the bo!;u::tdart• of th.J'21 Vt>ol:I whie!t the d~ pnmtae. w a1'1l' part ma;y be 1lt%ba, to -.un ~ ~ -.rq-ot tM JIOOl. to p~ J.lld :n~~o11h.~tt;~:;·~.:i:_.:e~~~..::dJt"%'::n:~:=:i.rt:=g~n:r&;;r~~~~....i!x~ ~~=i:i!'a-~~-~ 91!1~.:.~&ll ~.ubda.nus Prod~ ~~-~-~~-f' 1tp011:ke~.,4,~~-~;•n •ereyti 1-11 to th• HV-1 ;-.:;.~tr-:~-~~!" all.~ ~;con~ ~nd~nlaUoa. .•hall.~d,:f!:i,1-~~~'1.~ on . .,ii.~ fl_~~~;«".~·., - ~,d--~··· l I L·. ' I I -·~~"~'"' P8ge 50J ST~OF } ACK.NOV.. ~DGEMENT, Appliea.ble where landa are .in., ;,.. .,._,~ .•. ·~.--.••••. ~ ERED, ~ct on th'-_, --_ 11."" _, Oklahoma, Kansas, Ne~=~~~ Dakota, ~o~-~~;-~ ;fl~ .lilll a J U,l_ _______ .. _. ~·-· -·-·-·-·~A.-D. 19___, before me, a Noh;irr.ter ~.r~1~d C<>unty and State, penonally appeared...._ _____________________ _ County of--------------- ACKNOWLEDGMEXT, CORPORATION Before me, the undersigned, a Notary Public in and for said County and State, on this~----------day of ___ . ____ _ 19. ___ , personally appeared___ ___ . ---·-------~·----- to me known to be the identical person who subscriW the name of the maker thereof to the foregoing instrument as its __ _ -------------------and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deeC of such corporation, for the uses and purposes therein set fo:rth. Given under my hand and se.al of office the day and year last above written. My commission expires···--···-- 0 ... -------··------------Notary Public. P. O, ____ .... ------··------ OK.LAJIOMA FORM OF ACKNOWLEDGMENT WHERE GRANTQR SIGNS BY MARK NOTE---With reference to Oklahoma Jan~. wben thU. fo.atnunent;,, 1lvied by a peraon whe> cannot "'It.. hla n.....,e be ehaU ex<'C~ th• •une hr bi.. mark, and hl.o 11.,ne shall be ...-ntun nu.r 1uch mark by oue o! two pe.-..011.1 wbo oa .. 1och mack made, wbo ah&ll wriw their names on aoch Wtniment u witneNeO. On this --··-----------daY of--------------.-----. A. D. 19 ... ~, before me, the undersigned, a Notary Public, in and for the County and State aforesaid, personally appeared ___ _ and------·-·· ----------------------------------to me known to be the identical person_ who executed the within and foregoing instrument by _____ mark..__, in my presence and in the presence of----------------- and_ ______________ _ .:as witnesses, the sail'---------------------- t:iigning the name_ of the sai~----------------------~------------------> ~ acknowledged to me that .-----exeeuted the same as _________ fr<,., and voluntary act and deed for .' ,-~~e-uses and purposes therein set forth. '" ' ~-Given u1E.~~."PlY band and seal the day and year lut above written. -,1. ¥r commf expiree ----------------~'otary Public. J J '; .. ; . 't& ' '· " <'0";'"··'"' • '"-"'"·. ~I ,~-r~i· ~-i::t .... ·;;;<' --,• .,,,_~ SUITE 400 102 NORTH CASCADE AVENUt COLORADO SPRJNGS,COLORAOO 80903 SUITE 900 50 SOUTH MAIN STREET SALT LAKE CITY, UTAH 84144 ELIZABETH JENNINGS OALTON HOLME ROBERTS & OWEN ATTORNEYS AT LAW 1700 BROADWAY DENVER, COLORADO 80290 TELEPHONE (303) 861·7000 TELECOPIER 861·4578 May 5, 1988 VIA HAND DELIVERY Bonneville Fuels Corporation 1600 Broadway, Suite 1123 Denver, Colorado 80202 Attention: Brian H. Wert Re: Mead Leases; Special Use Permit Gentlemen: DENVER TECHNOLOGICAL CE)(J[FI SUITE 900 8400 EAST PRENTICE AVENUE ENGLEWOOD, COLORADO 80111 SUITE 400 1401 PtARL STREET BOULDER, COLORADO 80302: Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas leases are the valid existing leases as to the following described land in Garfield County (the "Land"): T. 6 S .. R. 94 W., 6th P.M. Section 26: SW/4NW/4. In connection with our ongoing title examination of leases you acquired from Mobil, we have reviewed abstract of title No. C0-12040-DWW, covering the Land, prepared by Deister, Ward & Witcher and certified to January 8, 1988 at 8:00 A.M. (the "Abstract"). Although this letter is not intended to be a complete title opinion, it is clear from our review of the Abstract (and subject only to the assumption concerning continuous production described below) that Oil and Gas Mining Lease dated June 5, 1953 and recorded in Book 283 at page 300 of the real property records of Garfield County, Colorado, from Norman H. Mead and Mary Jane Mead to Joe T. Juhan and Oil and Gas Mining Lease dated June 5, 1953 and recorded in Book 283 at page 302 of the real property records of Garfield County, Colorado from Emma B. Mead to Joe T. Juhan (collectively the "Leases"), are valid leases covering the Land. It is also clear from the Abstract that you, along with others, own the Bonneville Fuels Corporation May 5, 1988 Page 2 leasehold interests created by the Leases insofar as they cover the Land. The Leases were validly committed to a voluntary plan of pooling evidenced by Communitization Agreement dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the •communitization Agreement*), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under the Land shall be allocated on the basis of surface acreage to each parcel contained within the Land. Pursuant to the terms of the Lease and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under the Land since the date of the communitization Agreement, or that shut-in royalties have been paid during times of non-production, the Leases are in full force and effect as to the Land. In addition to the then owner of the leasehold interests created by the Leases, the Communitization Agreement was executed by Emma B. Mead, Norman H. Mead and Mary Jane Mead, who owned the surface and mineral fee estate in the Land at the time of the Communitization Agreement. Perhaps the confusion that exists as to this matter arose because of a top lease acquired in 1977 by Northwest Exploration Company from some of the owners of surface and mineral interests in portions of the lands covered by the Leases. The lease acquired by Northwest Exploration Company was a top lease and should be subordinate to the Leases. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. Very truly yours, ~Jc,/ t L----7a /) tvlhi--- Elizabeth ~nnings lOaltor{}. EJD:LPH:mr:en EJDC-CW9 SUITE 1800 1700 BROADWAY DENVER, COLORADO 80290 SUITE 400 102 NORTH CASCADE ,.t,VENUE COLORADO SPRINGS, COLORADO 80903 WILl..1AM R. ROBERTS HOLME ROBERTS & OWEN ATTORNEYS AT LAW SUITE 400 1401 PEARL STREET BOULDER, COLORADO 60302 TELEPHONE (303) 444.5955 TELECOPJER 444·1063 TELEX 45·4460 April 26, 1988 Bonneville Fuels Corporation 1600 Broadway, Suite 1123 Denver, Colorado 80202 Attention: Brian Wert Re: W.B. Reeves Lease; Special Use Permit Gentlemen: SUITE 900 50 SOUTH MAIN STREET SALT LAii.£ CITY, UTAH 84144 DENVER TECHNOLOGICAL CENTER SUITE 900 8400 EAST PRENTICE AVENUE ENGLEWCOO,COLORAOO 80111 Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas lease is the valid existing lease as to the following described land in Garfield County (the "Land"): T. 6 S .. R. 94 W •. 6th P.M. Section 23: E/2SE/4; Section 24: SW/4SW/4; Section 25: NW/4NW/4; Section 26: N/2NE/4. In connection with our ongoing title examination of leases you acquired from Mobil, I have reviewed abstract of title MT-12102, covering the Land, prepared by Deister, Ward & Witcher of Billings, Montana and certified to February 26, 1988 at 7:30 a.m. (the "Abstract"). Although this letter is not intended to be a complete title opinion it is clear from my review of the Abstract (and subject only to the assumption concerning continuous production described below) that Oil and Gas Lease dated December 3, 1952 and recorded in Book 293 at page 361 of the real property records of Garfield County, Colorado from w. B. Reeves and Leanora Reeves to Joe T. Juhan (the "Lease") is a valid lease covering the Land. It is also clear from the above-described abstract that you, along with others, own the leasehold interest created by the Lease. Bonneville Fuels Corporation April 26, 1988 Page Two The Lease was validly committed to a voluntary plan of pooling evidenced by Communitization Agreement dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the "Communitization Agreement"), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under such section shall be allocated on the basis of surface acreage to each parcel contained within section 26 of Township 6 South, Range 94 West. Pursuant to the terms of the Lease and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under section 26 since the date of the communitization Agreement, or that shut-in royalties have been paid during times of non- production, the Lease is in full force and effect as to all lands originally covered by the Lease. In addition to the then owner of the leasehold interest created by the Lease, the Communitization Agreement was executed by w. B. Reeves, Leanora Reeves, Norman H. Mead and Mary Jane Mead, who, collectively, owned the surface and the mineral fee estate in the Land at the time of the Communitization Agreement. Perhaps the confusion that exists as to this matter arose because of top leases acquired in 1980 by Northwest Exploration company from some of the owners of surface and mineral interests in portions of the Land. The leases acquired by Northwest Exploration Company were top leases and are subordinate to the Lease. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. Sincerely, \ !/ ~, f( ;1-,,~,J,_ William R. Roberts WRR/lgm l i ' l ; , i • i l ' SUITE 1800 r700 BROAOWA.Y DENVER, COLORADO 80290 SUITE 400 102 NORTH CASCADE AVENUE COLORADO SPRINGS, COLORADO 80903 HOLME ROBERTS & OWEN ATTORNEYS AT LAW DENVER TECHNOLOGICAi. CENTER sunt 900 8400 EAST PRENTICE AVENUE ENGLEWOOD, COLORADO 80111 TELEPHONE {303) 796·7005 TELECOPIER 796·0420 May 6, 1988 SUJTE 900 SO SOUTH MAIN STREET SALT LAKE crrr, UTAH 84144 SUITE 400 1401 PtARL STREET BOULDER, COLORADO 80302 Bonneville Fuels Corporation 1600 Broadway, Suite 1123 Denver, Colorado 80202 Attention: Brian H. Wert Re: Farris Lease; Special Use Permit Gentlemen: Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas lease is the valid existing lease as to the following described land in Garfield County (the "Land"): T.6S .. R.94 Section 26: W., 6th P.M. N/2NW/4 except the following tract in the NE/4NW/4 of said Section 26: Beginning at Corner No. 1, a point in the center of the County Road 801 feet West of the Northeast corner of the SE/4NW/4 of Section 27; thence N5l"04'E, 572 feet to corner No. 2; thence S30"10'E, 443 feet to corner No. 3; thence West, 673 feet to Corner No. 1, the place of beginning. In connection with our ongoing title examination of leases you acquired from Mobil, we have reviewed a Drilling Title Opinion, dated April 14, 1982, prepared by Welborn, Dufford, Cook & Brown, addressed to Northwest Exploration Company covering the Land and other lands, and abstract of title No. C0-12030-DWW, covering the Land and other lands, prepared by Deister, Ward & Witcher and certified to December 23, 1987 at 8:00 A.M. (collectiveely, the "Materials"). t 1 ' ·-~ ) ; 'i \ '· ~· ' • ' ) Bonneville Fuels Corporation · May 6, 1988 Page 2 Although this letter is not intended to be a complete title opinion, it is clear from our review of the Materials (and subject only to the assumption concerning continuous production described below) that the oil and gas lease, dated May 18, 1955 and recorded in Book 288 at page 55 of the real property records of Garfield County, Colorado, from Leslie Farris, a/k/a Leslie H. Farris to Joe T. Juhan (the "Lease"), is a valid lease covering the Land. It is also clear from the above-described abstract that you, along with others, own the leasehold interest created by the Lease. The Lease was validly committed to a voluntary plan of pooling evidenced by Communitization Agreement, dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the "Communitization Agreement"), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under the Land shall be allocated on the basis of surface acreage to each parcel contained within the Land. Pursuant to the terms of the Lease and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under the Land since the date of the Communitization Agreement, or that shut-in royalties have been paid during times of non-production, the Lease is in full force and effect as to the Land. In addition to the then owner of the leasehold interest created by the Lease, the Communitization Agreement was executed by Leslie H. Farris, who owned the mineral fee estate in the Land at the time of the Communitization Agreement. Perhaps the confusion that exists as to this matter arose because of a top lease acquired in 1981 by Northwest Exploration Company from some of the owners of surf ace and mineral interests in portions of the lands covered by the Lease. The lease acquired by Northwest Exploration Company is a top lease and should be subordinate to the Lease. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. LPH:mr LPH-C-CCl-050688 l ' i i i j ' SUITEl800 1700 8R0ADWAY DENVER, COLORADO 80290 SUITE 400 102 NORTH CASCADE AVENUE COLORADO SPRINGS1COLORAOO 80903 HOLME ROBERTS & OWEN ATTORNEYS AT LAW DENVER TECHNOLOGICAL CENTER SUITE 900 8400 EAST PRENTICE AVENUE ENGLEWOOD, COLORADO SOlll TELEPHONE (303) 796·7005 TELECOPIER 796·0420 May 6, 1988 Bonneville Fuels Corporation 1600 Broadway, suite 1123 Denver, Colorado 80202 Attention: Brian H. Wert Re: Eaton Lease; Special Use Permit Gentlemen: SUITE 900 50 SOUTH MAIN STREET SALT LAKE CITY, UTAH 8414-4 SUITE 400 1401 PEARL STREET BOULDER, COLORADO 80302 Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas lease is the valid existing lease as to the following described land in Garfield County (the "Land"): T. 6 S. , R. 9 4 W. , 6th P. M. Section 26: NW/4SW/4. In connection with our ongoing title examination of leases you acquired from Mobil, we have reviewed abstract of title No. C0-12035-DWW, covering the Land, prepared by Deister, ward & Witcher and certified to January 8, 1988 at 8: 00 A.M. (the "Abstract"). Although this letter is not intended to be a complete title opinion, it is clear from our review of the Abstract (and subject only to the assumption concerning continuous production described below) that the Oil and Gas Mining Lease, dated November 12, 1952 and recorded in Book 283 at page 502 of the real property records of Garfield county, Colorado, from Bert Eaton and Mollie Eaton to Joe T. Juhan (the "Lease"), is a valid lease covering the Land. It is also clear from the above-described abstract that you, along with others, own the leasehold interest created by the Lease. • Bonneville Fuels Corporation May 5, 1988 Page 2 The Lease was validly committed to a voluntary plan of pooling evidenced by Communitization Agreement, dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the "Communitization Agreement"), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under the Land shall be allocated on the basis of surface acreage to each parcel contained within the Land. Pursuant to the terms of the Lease and the communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under the Land since the date of the Communitization Agreement, or that shut-in royalties have been paid during times of non-production, the Lease is in full force and effect as to the Land. In addition to the then owner of the leasehold interest created by the Lease, the Communitization Agreement was executed by Bert Eaton and Mollie Eaton, who owned the surface and mineral fee estate in the Land at the time of the communitization Agreement. Perhaps the confusion that exists as to this matter arose because of top leases acquired in 1977 by Northwest Exploration Company and in 1987 by Fina Oil and Chemical company from some of the owners of surf ace and mineral interests in portions of the lands covered by the Lease. The leases acquired by Northwest Exploration Company and Fina Oil and Chemical Company were top leases and should be subordinate to the Lease. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. LPH:mr LPH-C-CBB-050588 SUITE 400 102 NORTH CASCADE AVENUE COLORADO SPRINGS, COLORADO 80903 SUITE BOO SO SOUTH MAIN STREET SALT LAKE CITY, UTAH 84144 KAY M. SMALL HOLME ROBERTS & OWEN ATTORNEYS AT LAW 1700 BROADWAY DENVER, COLORADO 80290 TELEPHONE (303) 861-7000 TELECOPIER 861·4578 May 6, 1988 Bonneville Fuels Corporation 1600 Broadway, suite 1123 Denver, Colorado 80202 Attention: Brian Wert Re: Juhan, Luxen and Farris Leases; Special Use Permit Gentlemen: IJJ:'a MAY 6 . 1988 DENVER TECHNOLOGICAL CENTER SUITE 900 8400 [AST PRENTICE AVENUE ENGLEWOOD, COLORADO 80111 SUITE 400 1401 PrARL STREET BOULDER,COLORAOO 80302 Pursuant to your request arising from inquiries of the Garfield County Attorney, we are writing with respect to the issue of which oil and gas leases are valid existing leases as to the following described land in Garfield County (the "Land"): T. 6 S., R. 94 W •. 6thP.M. Section 26: S/2NE/4, SE/4NW/4. In connection with our ongoing title examination of leases you acquired from Mobil, I have reviewed abstract of title C0-12087, covering the Land, prepared by Diester, Ward & Witcher of Billings, Montana and certified to March 4, 1988 at 8:30 a.m. (the "Abstracter") and a prior opinion covering a 2.77-acre tract in the SE/4NW/4 of Section 26. References in this letter to recording information are to the real property records of Garfield County, Colorado. Although this letter is not intended to be a complete title opinion it is clear from my review of the Abstract and prior opinion (and subject only to the assumption concerning continuous production described below) that the following Oil and Gas Leases (the "Leases") are valid leases covering the Land: 1. Oil and Gas Lease dated September 20, 1955, from R.P. Luxen and May Luxen, his wife, to Southern Union Gas Company ("Lease l"), recorded in Book 288 at page 505, covering an undivided one-half interest in the mineral estate in the Land, except 2.77 acres in the SE/4NW/4 of Section 26, and other land; Bonneville Fuels Corporation May 6, 1988 Page 2 2. Oil and Gas Lease dated October 17, 1955, from Joe T. Juhan to Southern Union Gas Company ("Lease 2"), recorded in Book 290 at page 5, covering an undivided one-half interest in the mineral estate in the Land, except 2.77 acres in the SE/4NW/4 of Section 26, and other land, but excluding gas and gaseous substances from the surf ace down to a subsurface depth of 2,000 feet in the S/2NE/4 of Section 26 and other land; 3. Oil and Gas Lease dated January 15, 1958, from Joe T. Juhan to Wasatch Development Co. ("Lease 3"), recorded in Book 404 at page 431, covering the S/2NE/4 of Section 26 and other land from the surface down to a subsurface depth of 2,000 feet; and 4. Oil and Gas Lease dated May 18, 1955, from Leslie H. Farris to Southern Union Gas Company ("Lease 4"), recorded in Book 284 at page 280, covering the 2.77-acre tract in the SE/4NW/4 of Section 26 excepted from Leases 1 and 2 and other land. It is also clear from the Abstract that you, along with others, own the leasehold interests created by the Leases. Leases 1, 2 and 4 were validly committed to a voluntary plan of pooling evidenced by Communitization Agreement dated March 15, 1960 and recorded in Book 328 at page 255 (the "Communitization Agreement") which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under such section shall be allocated on the basis of surface acreage to each parcel contained within Section 26 of Township 6 South, Range 94 west. Pursuant to the terms of Leases 1, 2 and 4 and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under Section 26 since the date of the Communitization Agreement and minimum royalties have been paid under Lease 2, or that shut-in royalties have been paid during times of non-production, Leases 1, 2 and 4 are in full force and effect as to all lands originally covered by such Leases. Lease 3 was for a primary term of 15 years from January 15, 1958. Pursuant to the terms of Lease 3, and assuming that since no later than January 15, 1973 there has been gas production continuously above 2,000 feet underlying any of the land covered thereby as described below and that payment has been made of the lessor's royalties arising therefrom, or shut-in royalties have been paid during times of non-production, Lease 3 is in full force and effect between the respective successors and assigns of the lessor and lessee Bonneville Fuels Corporation May 6, 1988 Page 3 thereunder as to all lands originally covered thereby, such lands being the following: T.6S •• R. Section 25: Section 26: Section 27: section 34: Section 36: 94 W,, 6th P.M. W/2SW/4, SE/4, E/2SW/4; S/2NE/4, N/2SE/4, SW/4SE/4, S/2SW/4, NE/4SW/4; Lot 7, SE/4SE/4 except that portion lying northwesterly of the County Highway as it existed on March 14, 1911; W/2E/2, E/2W/2; W/2E/2, E/2W/2; T. 7 S •. R. 94 W., 6th P.M. Section 1: NE/4. If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. Sincerely, KMS:csg RMSC BX6 .. . . --..... _ --·· _ ..... - ·! ·--(: ooi::c-• -- /11.:f ;;-1J 1 . • , ·,,,/:]; '$<; COLO. OIL & GP.S CONS. CO APPLICATION i. U.ASi DUl!iHA TIOH AND llllAI. NU. . . ..... FOR. PERMIT TO DRILL, DEEPEN, OR RE:ENTER AND OPERATE ..... IHD"N. ...... umt 01 Biil NAM£ .. nTC ... WOU DRIU.0 DEEPENC RE·ENTER 0 ",. r. UNIT AQUNlHT NAM£ .. "'" ... inu. .. .. "I& :fu.O :t.B ontu SINQI a IONl 11111.'llPU ~ IONI I. fAIN 01 ILUl NAM£ • .. Bonneville Fuels Corporation • i.PllONE NO. ·-Head ?~ar?Oh OPEUTOl: I 303 I 1....-........ Nu. ADDlt.ESS: 1600 Broadway, SUite 1123 863-1555 26··12 CITY:" Denver STATE: Colorado ZIP: 80202 10. flUO AND POOi. 01 WILDCAT t. LOCATION Of wtLL (lcpoft locao;... rlnrfr • le ........... -U)' S.-....,.,..... .... , J Rulison "'.....c-iGso Fllfi 600 Flll7 / 7t/z.. 'P/'l l1 > 17 r-:w L ···'C.·"" -T.LA"u ,..,..._.. ..... _ . NW/4 Sec. 26 T6S R94W 11. DISTANCI, U llU THAN 100 n. 11011 ANY OCC\1111D lllJ)Q. PUil.iC IOAD, Ato~ CIOUND UTtUn UNI 01 lll.COUN1Y MILaOADpHOW fOOTACU ON IUIYn flA1) Garfield u. DISTANct now raorosm ........ TioN To NEAaUT 15. NO. Of ACllU IN UAU' 16. NO. OF ACllES AND/01 DIUWNC UNIT raoruTY 01 LEASE UNE, fT. e:;' 7 J ASSIGNED TO THIS WELL~ l-1 /f) !Aho ... .,....,.,,._._,,..,, ~ I o~ "· DISTANCl noM uoro.sm LOCATION TO NEAii.UT wtU. IL noPOSED DUlli lt.OIJlCTIVt: FORMATION DIUWNC:. COMl'Unll, N/A · 6300' Mesaverde oa APrLllD fOI. ON THIS UASt. fT. 20. lllVAllONS !Show .......... Ga oc llJ 111. DlllWNC COKDACTOI PllONl NO. rt. Al'tlOX. DA Tl WOU WILL STAllT 5300' April 15, 1988 . raorostD CASINC AND ClMlNTINC UOCMM SIZ&OJHOU llZl Of CASING "DCHT ... '°"' KTflNCDUIH qµA.Nr&n or CINlNT c~· .... :' :,. 12 1/4" 8 5/8" 241 400' 200 SX ... 7 110• •4 1/2" 10.51 6300' 1200 sx h. IS SUllfACl OWNlll AUO Tiil MINllAL OWNU! YU D NO D If NOT ,..rfott i....i "'"" lo< -filt or "'f'1 el"'"°" ......,_ .,_ lo< r...;.i...t. •ln!pu4 laN, ..r... ._.o(ISOOO ~ ..,....._ Agreement forthcoming -~ d_ •OE.SClllll UASl IY Q.1l. CV'Jl.. SEC.. lWHSHr~ RNC. NW/4 Sec. 26• T6S R94W ti r;/4-"::ill-z_ -t b s <t 4-W .....A7PLEASE tlU. IN .ur1.ora1An: r'i:oDES: orU.No. 069'00 DI.LL NO.------ fllUI NO. .. 7.,.5,.,.40,..0._ __ _ UASl NO. -,..,,.......,.--- fOllM CD. _ffi ':JR,):>_ •.. u..*\)~MQ._ ¥9 tm G. ! l_ cock,c, rz=i~f&~ ,. President DATI 2/10/88 • 1'11Wi. ...... naMIT No. __ -"8_8_-_4-'--3_7 ___ Arri.OVAL DAn-~M""'AY..._..l...;.7_1_98_8 __ txriMTION.DATlSEP 16 1988 /.) ;,.cJ / ' // ty// ~ MAY 1 7 1988 Art'&OV1:D IY pc/ &?77-tr#t.. pt:)'!<. 11TU Dirtttor DATl _____ _ -~'-...._.._.-='----~'-r-...____ ·-O~i~~~C:.....,..-.~Com.n""'-'-=-.-Com-&----r----------------------.. CONDmONS Of Arfl.OYAI. IF ANY: .('·. - I ' . ' . ..... _ .. A.P.I. NUMBER Stt l111INction1 On lttvrnr Sidr OS o+s GS53 ~ ~ SEC . ..zk_, T. ti 5 I I '"'I ltl -1 I I I -"!.'.:._-<) \:) \j \!t. + , R. 9/ H/, OF THE 6rJI 841 ~.(.0. "t ·+· /./.119•4z'2,;•c. Z6,;?>.~8' lM!i/~ OJ' t>e-4121A1'f' 80NN£ VILLE'" Ft/ELS f ZIP-/e LOC4/IOAI GO. £LE.I/ 52~3.0' + • 0 .L.EGENO @ •Tll.HOAltO &.OOATIOH O, ~ ................ . ~ ® •&.o C:o1tH••• t'OVHO ~ 0 WCI. L 1..0CATIOH •TA,,•O. '-!. Q REFERENCE DOCUMENTS ~ VI GLO PLAT RtEt.e: t J!. .114.{(AI PJL. ~~~~~~~~...L~~~~~~~-i(i~~~~~~~.....l.~~~~~~~-«O~ QUADRANGLE,USGS THIS WELL LOCATION PLAT WAS PREPARED FOR_},,~~~'"1:....2:.JJJ.~52.._ ___ -I TO LOCATE THE .JJ Ztp-/Z 1742' F.Ji.: L.& S/7 F....J!I.... L. IN THE ~l/4 NW 1/4, OF SECTION ..M!_,T,.1;J2., R.~'.D...:.--1 OF THE~ P. M. fil4!eF!A'l 12 COUNTY, ---'"""!..!l=..!<'.;,,e'-'!L~~--------1 8UltVE'r'ED OHltOIC/10 ENElteY SURVEYOR'S CER Tl Fl CATE I, LARRY O_ BECKER A REGISTERED LAND SURVEYOR IN THE STATE. OFC0[.0121J00 DO HE.RE.BY CERTIFY ..,..HAT THIS SURVEY WAS tviADE. UNDER MY DIRECT SUPERVISION AND TH-AT THIS PLAT E.PRE.SENTS SAID SURVEY. 8GAL.I!: I"" 1000' BUltVl!YS a ENetNICl!ltlN& CORP. 71~ HORIZON DRIVE,SJITE. ~O '3RANO .JUNCTION, <:.O 81501 ( ~o:sJ 248 -re21 .JO• NO. RIGHT-OF-WAY AND SURFACE DAMAGES AGREEMENT STATE OF COLORADO )s COUNTY OF GARFIELD ) s THIS AGREEMENT is effective the C( day of~'.,f ' 1988, by and between George W. Pearson and Chris Pearson 5805 320 Road, Rifle, CO 81650, hereinafter referred to as 11 G TOR" and Bonneville Fuels Corporation, 1600 Broadway, suite 1123, Denver, Colorado 80202, hereinafter referred to as "GRANTEE 11 • WITNESSETH: For and conditions, hereinafter set follows: in and consideration other good forth, Granter of and and the convenants, terms, valuable considerations Grantee hereby agree as Grantee intends to drill a well for oil and/ or gas, said well to be known as the 26-12 Pearson well hereinafter referred to as "the subject well", to be located in the SW/ 4NW/ 4, Section 26, T6S, R94W, Garfield County, Colorado. Granter does hereby convey to Grantee, its successors and assigns, a right-of-way upon and across the above described land and premises, together with the right so long as said right-of- way is used for the purposes herein granted, to enter upon and across the surface estate of Granter, to construct, maintain, repair and use limited access roads, together with all necessary bridges for access to the subject well location; and, to construct a wellsite, tank batteries, electrical lines, pipelines, and all such other related facilities as are necessary for Grantee to properly drill, equip, complete for production, produce and/or plug and abandon the subject well. Grantor hereby reserves unto itself, its successors and assigns, all surface, water and mineral uses and the right to grant additional and successive rights-of-way which are not inconsistent with the rights granted to Grantee at all times that this right-of-way is in effect. Entry upon the heretofore referenced surface estate and right-of-way for use of the access roads, wellsite, pipelines and all other related facilities are hereby granted upon the following express conditions: 1. Grantee, its agents, successors and assigns, will save and hold Gran tor harmless from and against any and all claims, demands and causes ·of action including reasonable expenses, attorney fees and court costs, arising from or in connection with any claim for damages to persons or property caused by the willful or negligent act or omissions of Grantee in the installation, construction, repair, maintenance and all operations involved with the drilling, completion, production and/or plugging and abandoning the subject well, but not otherwise. 2. Should Granter or any third party use the rights-of-way or easement of Granter herein, said parties agree to indemnify and hold Grantee harmless from and against all claims, demands and causes of action including reasonable attorney 1 s fee, for personal injury, death or property damage arising out of or attributable to Grantor's or third party's willful or negligent act or omission while using said right-of-way or easement of Grantee. 3. Grantee shall notify Granter prior to its initial entry upon the surface estate of Granter, and Granter and Grantee shall mutually agree upon the location of all roads, pipelines, wellsites, tank batteries and any and all other facilities to be located upon the surface estate of Granter. Grantee shall not commence any operation until Granter has approved the location of all such improvements, however, such approval shall not be unreasonably withheld. 4. Grantee agrees to use the access roads, pipelines, wellsite, and related facilities hereon in conformance with acceptable and prudent oilfield standards and practices. Grantee agrees to tender to Granter in advance of operations a one-time payment of Fifteen Hundred ($1soo.oo ) for the wellsite location and right-of-way over and across the access roads during the drilling, completing, equipping and production operation of the subject well. Grantee agrees to line all pits and to pay for any and all damages to growing crops, livestock, and fences caused by any and all of its operations on said land. Grantee further agrees to install culverts at water crossings and gates according to Granter• s specifications. Grantee also agrees to relocate and reconstruct those portions of Granter 1 s irrigation ditches that interfere with Grantee's operations, in accordance with Grantor's specifications. 5. This Agreement shall remain in full force and effect from the date hereof, and so long thereafter as the subject well is in production, and/or the oil and gas lease incident thereto and under which the subject well was drilled remains valid. 6. Any new road constructed to permit access to the wellsite location and related facilities will not exceed a total surface width of twenty ( 20) feet. Grantee shall at all times maintain said roads in good condition and acceptable repair, all at the sole cost and expense of Grantee. 7. In the event that the subject well does not result in the discovery of oil, gas, or other hydrocarbons in paying quantities, then Grantee agrees to plug and abandon said well in :t' accordance with all laws and regulation of the State of Colorado . . i'' If the subject well is plugged and abandoned, Grantee agrees that i, within a reasonable period it will restore and re-seed the Gran tor• s surface estate to as near its original condition as practicable. Grantee shall have the right upon termination of its operations hereunder to remove or have removed all of the equipment and materials at its sole cast, risk, and expense. 8. The terms, convenants, and provisions hereof shall be binding upon and inure to the benefit of the parties hereto, their successors, and assigns and the rights and easements herein granted shall be assignable together or separately, wholly or in part. IN WITNESS WHEREOF, the Agreement is executed the date first set forth above. SUITE 400 102 NORTH CASCADE AVENUE COLORADO SPRINGS, COLORADO 00903 SUITE 900 50 SOUTH MAIN STREET SALT LAKE CITY, UTAH 84144 ELIZABETH .JENNINGS DALTON HOLME ROBERTS & OWEN ATTORNEYS AT LAW 1700 BROADWAY DENVER, COLORADO 80290 TELEPHONE (303) 861-7000 TELECOPIER 861·4578 TELEX 45-4460 May 5, 1988 VIA HAND DELIVERY Bonneville Fuels Corporation 1600 Broadway, Suite 1123 Denver, Colorado 80202 Attention: Brian H. Wert Re: Mead Leases; Special Use Permit Gentlemen: DENVER TECHNOLOGICAL CENTER SUITE 900 8400 EAST PRENTICE AVENUE ENGLEWOOD, COLORADO 80111 SUITE 400 1401 P~RL STREET BOULD£R,COLORADO 80302 Pursuant to your request arising from inquiries of the Garfield county Attorney, we are writing with respect to the issue of which oil and gas leases are the valid existing leases as to the following described land in Garfield County (the "Land"): T. 6 S., R. 94 W •. 6th P.M. Section 26: SW/4NW/4. In connection with our ongoing title examination of leases you acquired from Mobil, we have reviewed abstract of title No. C0-12040-DWW, covering the Land, prepared by Deister, Ward & Witcher and certified to January 8, 1988 at 8:00 A.M. (the "Abstract"). Although this letter is not intended to be a complete title opinion, it is clear from our review of the Abstract (and subject only to the assumption concerning continuous production described below) that Oil and Gas Mining Lease dated June 5, 1953 and recorded in Book 283 at page 300 of the real property records of Garfield County, Colorado, from Norman H. Mead and Mary Jane Mead to Joe T. Juhan and Oil and Gas Mining Lease dated June 5, 1953 and recorded in Book 283 at page 302 of the real property records of Garfield County, Colorado from Emma B. Mead to Joe T. Juhan (collectively the "Leases"), are valid leases covering the Land. It is also clear from the Abstract that you, along with others, own the Bonneville Fuels Corporation May 5, 1988 Page 2 leasehold interests created by the Leases insofar as they cover the Land. The Leases were validly committed to a voluntary plan of pooling evidenced by Communitization Agreement dated March 15, 1960 and recorded in Book 328 at page 255 of the real property records of Garfield County (the "Communitization Agreement"), which provides that all natural gas and liquid hydrocarbons produced from the Mesa Verde formation under the Land shall be allocated on the basis of surface acreage to each parcel contained within the Land. Pursuant to the terms of the Lease and the Communitization Agreement, and assuming that there has been production continuously from the Mesa Verde formation under the Land since the date of the Communitization Agreement, or that shut-in royalties have been paid during times of non-production, the Leases are in full force and effect as to the Land. In addition to the then owner of the leasehold interests created by the Leases, the Communitization Agreement was executed by Emma B. Mead, Norman H. Mead and Mary Jane Mead, who owned the surface and mineral fee estate in the Land at the time of the Communitization Agreement. Perhaps the confusion that exists as to this matter arose because of a top lease acquired in 1977 by Northwest Exploration Company from some of the owners of surface and mineral interests in portions of the lands covered by the Leases. The lease acquired by Northwest Exploration Company was a top lease and should be subordinate to the Leases. . If you or anyone with Garfield County wishes to discuss the matter, please do not hesitate to call. Very truly yours, EJD:LPH:mr:en EJDC-CW9 Oil and Gas Mining Lease Co -Df!-13 THIS AGREEMENT, Entered Into this the .. ~m.."12: .. 3. :·e:;.1 between 5 ·-············day of June ... --............... , A. D. 19 ... . .SC ........... , herelnatter called lessor, and Joe Ju:r_r-n .............. hereinafter called lessee, does Witness: l. T'-..at lessor, for and In consideration ol the •um of ... r;'.!?..~2 ..... ~-._t""'~----~g/J.~;~_Q ············-····-··· Dollan ($ ... lQ. ... Q.Q ...... -.) in ha.Qd pa::!. and ol the covenant• and alt'Teemeoh hereinafter contained to be ~riormed by the lessee, hu this day granted and leaoed and hereby ll'TJ.DtB. leas .. and lets U!:~o the Jeeaee for the purpose of mi11in1;: and operating for and Pro~ucing oil and gu, caslnghead gu and ca•ingbead ~a.soline, layinir pipe linu, buildinl!:'. tanto, otor-'Og oil, building vower•. stations, telephone line• and other strunurei theroon to produce, sa.•·e, take care or and manufacture all of •UCh oubatancei, •nd for bousin, and boarding employees, the Jolfowini: described tract of ]nod in •... ?: ___ ;~.f~,.9..~.?. ... ..... County . ..9.9.l..9.I'.;;",_Q_Q ............. to-wit: . in Section _,_ ............................ , Town.hip . 6 .. ~ • ..... , R.ani:e _ '24 ,_;/.~. •nd containing . ..J~.Q... . ... •cr06, more or Jou. 2. ThiJ ]ea.., ohall remain ln fo!'<'e for a t.nn of ten (10) yeats and as lon11: thereafter •• oil, gn~. Ca<inghead gu. casinghead l\D.Soline or In)' oI them I.I or can be proO~ced.. 3. The lesiee shall deliver to the credit ol the !e~or u royalty. free ol cost, in the p!pe line to "hich l~ssee may connect ita welt.. the eQUal 0 oe·ei11:hth nart of all oil rrc<1uc~d and oa•ed from the lea..,d nremioea, or at le,.ee•a option. may pa-· to the lessor /or '"'n one-eigb1h royalt,y the rnarket price for oil of like tn.de and gnl\itr pre1011ing on the day such oil l• run into tbe pipe line, or into stor•ll'• tonks. t. Th lesue oball pay le.,,or, u royalty. one·eill"bth of the proceeds lro:n th• Sale ol the gas, a• •UC~ for J(U from wells where R<I• onlr i• found. and whero not 1<>ld .i..:1 pa;· Fifty ($50.00) Dollar; per 3nnum "' royalty frcm each such W•!l, and while such. royah,-:s so paid ~ch well aha!l be held to be a producioll' wd\ undor P•r-...,..ph cumbered two bereol. The lesi;or to ha,·e ll'U free ol cbanr• trorn any J<as well on th• le"'ed premi,.• for &to•es and inside lili:hts lo the nrlnci· pal dwelling bouoe on .aid \and by makin11: hi• own ccnne<.'tion with the well, 11'.e '"" o~ ••id l!'U to he 01 the le 5 sor'• sole risk and e~en•e. The lessee ahall pa,y to lessor /or fU produce<! from any oil well and u<ed by the lessee for the m01Ju!.ctnre of 11:a.oline, or any mhr product, as ror•!tr. one-eil!'hth of the market >alue of auch gu. If oaid gl.!J i• o.old by the lessee. tben u royalty one·eightb of tbe procee<ls of the oale lhereoi. 5. If open.tiorui for the dril!inl{ ol a well for oil or i;:a. ore not cornmenceJ on ,aid laod on or before ooe year from tb!s date, thto leue ehall terminate u to both J>trtles, unl .. 1 the IE'SS.., ohall. on or before one year from thia date. pay or tender to the lessor or tor the Jegsor's nedit In the .... ?~.J:'._S_:t .. );_§.t.~g_gg_l__ Bank at .'.J..r..S-;.:J.~~ .... Ju.n.c .. :;2.o.!l1_ .. _i]_o.lar.:idD. ..·-····-·-·-.... -...... or it• suec~l"S. wbich hank and itA 511cc .. son a•• tile lossor'• ai::ent and .hall confome u tbe depository of any aod all rum• Dayable under this leue. rfl!'ardl .. of change1 ~! ownenihip In said ]and or !n the oil and 1\1.S, or in the r ... u.i.. to l<erue thereunder, the sum ol ..... ~.;:::_ ... Q.s;.;.J.t.§ ..... P..e.I'. .... S.C.I'..e . ......... _ ... Jti:;;i~ U ..... Q . .-.2.5 .... ) which &halt operate ao remal and co•·er the pri,il•Ke ol deferrinq the commencement ol dril1inir oporationo for a period of one year. ln like manner and upon like nayments or tenders. the commeneemeot ol dril!ing operations ma;-be further deferred for Uke periC><Js succ"""i'"•lY. All payments w tendtrs may be made by check or draft of l•••ee or any aa.sill'n~ 1her...,f. mailed or de!i\ered on or be/ore the rental na,ying date. Sotwithatanding th1 death of the leosor. or his fUe<:"..,.or in Lntere•t, the payment or tender ol rental• i:! 1he manner prm·ided abo1< shall he binding on the heinl, del·lceea. UK"Utora and administr.>toro of ruch. pen;on. 6. If II any time prior to the diacovery of o!l or 11:as on this land and durini::-the term of this lea<e, the Jessee aha\\ drill • dry bole, or bole1 011 I.hi.I land, th!o lease sl:.all not terminate, pro,·Jded operations for the dr!l!Jo11: ol a w•ll shall be commenced by the n<>t ensuin11: rental payinl!' date, or provided the leSSH be- lrin• or reru1'::es the payment ol rental• in the marwer aod amount hereinabo.-e uv1·ided; (and in this e>eni the pre<.'edmg paragrapha hereof go>emit\R' tb• p~ymeut of rentals a.::'.l the rnanner and effect thereof ohall continue Jn force). i. ln cue oaid lessor oW!ll 1 1 ... interert In tbe abo<e described land tha~ the entire and undividtd fee simple .. tate therein. tb•n the royRltles and rent.da herein pro>i~<'i for &hall he paid the said les•or on!Y In the proportion "hicb bi> lr.terest bean to tbe whole •nd undivided ltt, 8. The !e.ssee shall hll·e the ri.o:ht to use, tree ol ccot. 11:as, oil. and "'•t•r !~und on sa!d land for it• operations thereon, .. ecPt "·ater from the wells of the le~1or. When required by l™or, the le'"'e 1hall bury fliPe Jines below plcw dert.~ and shall pay for damage cou.ed by its operation• to l':TOwin11: crono on ••id land. ~o well oh11l be drilled nearer than 200 feet lo the house or barn now on ,..,;d tirrr::iioes without written cement of the lessor. Lessee shall bHe the Ti11:ht at a11r time durini: c·r after the expiration of thi• I•••• to remo,·e all machin•Q·. nuures, houoe>, buildings and other 5Irudures placed on o.aid premises, inclu~in1t •he ri.o:ht to dr•"" and remo>e all casiosr. • 9. H t!ie e•tate of either party hereto;, asohrned (n.d the privile11:e ol a...-i"'ir.1t in ..-bole or In part is erpressly ~ed), the covenanb _hereof Mall uteud to the hell"!', uecutors, admlnistraton. succesi;ors and "'Sill:Il>. but no chan11:e ol o~·nership In the ]and or 10 the rentalf{;'·;::,yaltiee shall be bindwg on the lessee until after notice to the lessee and it has been lumi•hed "·ith the written transfer or 1<<'11:nn,.nt or a certiHed coPY thereof. IO. !f the !eosed premi•es 5 hal\ h•re•ller he 0 wned in ..,1·eralty or in HPatale iracts, the prem;,.,, nei·•rihele<s, shall be de,-eloped and oPerated as one leue and all ro.nltie; attruinq boreurnler shall be treu..i as an entirety and sh.all be didded arnang and paid lo such <epuate owners in the proponion that the arrean owned hy each •Urh ,.parate owner bears to the entire lea'"d acr~an. There 9hall be no ob\\11:a1ioo on th• nart of .th• \eS<ee to olhet wells on separate tr.>Ct• into ,.-hich th~ land conre<i h; this lease may be hereafter dil'ided b)· sale. dHise, or othe!"Wi ... or to furnish ooparate rne••minll' or receivini:: tank•. It is hereby •~eed that, in tbe ennt this le"'e •hall he asaign0<t a. to a part Pr u to pans ol the abo,. d-'cribeJ l3nd,, and the hold" or owner o! any such part '" pans &boll fall or make default in 1te raymenl ol the proportionate part of the rent due from him or them. nieh d~lault •hall not opera1• to defeat or affect this lease in 10 far u it con,.. :nfi~~ 0~oP~;,~.z,; :C;~oi-~J~;~~J~,::;~'~a;.h;.;~'i.~011d'~:e1~'.n"t~Y 1 h!~~~7·~11~~!.,dh~l;. t\T".'\~ g~i~;)·d';~~i.,~i.,"'';'; ·~~r~:f ~~. Yn a~ ~~~o:~~b1et~~~~,,i;~:~t ~~"be "ft1~~ui;..f ir~ Jes-, a Nn;:non agent to receive all paymentA due hereunder. and lo execute dh·is1on and trans/er orders on behalf of said parties, and their r<Sllective ouccwion lo tille. 11. Le.•or he<eh)' warrants and asrrees to det.nd the title to the lai::d heHin described and a11:reeo that the lessee, at it. option, may pay and diarhlTll:e any tu ... moruaires. or other lien• exlstin11:. le\'ied, or ""esoed on or a.o:ainst abo>·e de>rr!bN land• •nd, in e>ent it ner<ise• ouch option, it shall be subropted to the rii:rbt. ol ~ny holder or h<>Men thereof and may reimhur .. its•lf by anPIJing to the d;,charire ol any such mort.o:•l\e, in or other lien, any royalty or rentalB accrulni:: hereunder. l~. 'So!<T!tboundhii::-1nythin11: in this lellle contained to the ccntr.>r:r, It ;s e:rpressly aqreed that if le>He •hall commence dri!lin11: oneratlo111 at any time while thb Je~ i• in fol'<'e, this lease Wall remain in force and its term o!ull c~ntinue so lool!' os such OP•ratior.• •re proS<'cnted and, !l production resulta therefrom. theu at !on.:-u prod~ction continues. I 3. lf wttllio the Jlr\mary tenn ol thi• leue production on the leapd nremiseg shall cease from any cauoe. this l•Ue shall not terminate pro~ide<l OP•n.tiCJ111 for the dri!!!ni:r of a weil .shall be commenced before or on the nert ensuini: rental pai·rng date: or, provide<! le3'ee hegino or reamn .. tbe nayment of rental.I In the mall· ner U•d arnount bere.i!labo\'e nrOl'ided. If, aller the expiration of the prim1rf term of this lease, produrlioo on the l•ased pren1i1ea shall cuoe frnm al\J' ea1ue, this leue r!uU not tem:iinate pro~ided losse<! resume• operation.o for drillii:,;: a .,-ell within oiny (60) dan from •uch cessation. and thie leue shall remain In force dur· ini" tbe pl'05ee'Utlon of oucb operations and, if production rerolto there/rom, then u lon11: u production continue•. U. Le...., may at any tlm• rurrender thill leL'!e by deli•erini:: or mail!oi:r a rel.._.e theroof to the lessor, or by pllcinsr a releue thenof of record Ill t.D.~ nroper COlUltJ'. J 5. It Is •need that thla lease lhal\ never he forfeited or c1ncellffi for Jai!un to perform Ill whole or Ill part any ol Ila imp\led connanta. condltiou, or 11.lnu- lallon• nntil it eha•J hare ftrst been ~nilly judicially det•rmine<l that sucb failure uiot.o, and after ruch ftnll deietmlnation, leos~ ll JOveu. a nuonab!e time there- from to eoinpiy wJtb llllJ ouch coveunto, condll!ons, or 11.!oulationo. ,/ie. r.;., hereby made the duty of the lt.,...e, and the !euee !A emooTer..J, Ill the optration of the demi"'d premi.seo, to pre~ent e<.'Onornlc and ohy•lcal wute, to de~ne th~ boondanu of tht ooo! upon which the dernioe<J prem!o .. or aoy Part mar be si!u•to, to consel'\·e 1he re8"rv01!' energy o! the pool, to protect and cooHrm the con-el.at!•• riirbll of •!\ tbe ownere in the nool, to denlon and foster ma.rkeu lo? lht producu o! the pool, and to e11ter ioto all:Teement. with other ownel"ll ol the nool to eUTJ' out the foregoing and to unit!•• the noel and all 01!, i:raa. natural u 1 and auoc!ated fiuid hydrocubon1 therein, oo that tho pool will be manned and oJ>er· ated u 111 ezitintJ", o.nd •l! unitized rubou.ocu produced !rom the pool shall be 1pponioned and •llocu..i on on acreage huis to tbe ..,veral tnCU comptl•inll' tbe POOL I 1. Thll lea&e and all lh tenns, conditions, •nd sliplatlon• •hall •nend to and be .binding on all ru~e.,or. ol uld J ... or or le .... e. P.I Wl'r.\tSS \\'Hl:Rl::OF, we slim the day and year ftM aboH ~·ritt•n. -1 " .'7 .. ~~ ..... &c ... ~ .. WIT!.'l:SS: STATE OF .. County of .. BE IT REMEMBERED, That on this . . day Of ... Public ln and for said County and State, personally 3ook ?.-13 Pag"' 303 ACK..'i"OWLC.DGMEXT, Applicable where lands are in Oklahoma, Kansas, Kebraska. S'6w.h Dakota, Arizona an1 New Me%1co . . ... , A. D. 19 __ ... , before .me, a !\otary to me known to be the identical person.. .. described in and who executed the within and foregoing instrument and acknowledged to me that . executed the same as . ...... free and voluntary act and deed for the uses and purposes therein set forth. ,,,,11~;.~ess. Whereof, I have hereunto set my official signature and afiixed my notarial seal, the day and year first above written . .._,,_.,~ ~ ll N 4 t ,.~· .. ~·~ J:.,_""""" ..... :::::·:.,:::::~:::: ·r~,-~~µyi,lbb~n to me to be the person .... whose name.··-----~-_ ... subscribed to the within instrument, appeared before .,~~'tbla~f'Y~ person and acknowledged that-.. ~·-· ... signed, sealed and delivered the said Instrument of writing as. ········-~---free and Yoluntary act and deed for the uses and purposes therein set forth. My ::::::,,:: ::;,:,:•d o~;;;;a~;>f. £ day ")i:::::;;~, ~~:,; ::~~;:J PO,,,{~~- STATE OF .. County oL ACKNOWLEDGMENT, CORPORATIO?-; Before me, the undersigned, a Notary Public In and for said County and State, on this . . .... --··········· day of . 19 ....... , personally appeared to me known to be the Identical person who subscribed the name of the maker thereof to the foregoing instrument as Its. -···········-··----·········----·--···············-·--·"············· and acknowledged to me that he executed the same as bis free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set torth. Given under my band and seal of ofiice the day and year last above written. :My commission expires ci z w en c:c w ...I = :z: -:z: - == en c:c = = :z: c:c ...I -Q 0 " OKL.\HO~!A FORM OF .AC!\SOWLEDG!dE~T WHERE CRASTOR SIG~S B\' ll.\Rli: Notary Public. P. 0 .. -- SOTI-w;th referenee to 0klahoma land" ..-hen this Jnstn.imenc i• si1t11•d by a per;o~ who eannot ..-rite hi.< na~e he •hall eueute.the same~-'· hi•.mark. aud hi• r.am• shall ~. ""rJtlen r.eu •uch mark by one of l"'o persons ..-ho sa..-suoh mark maJe, ..-ho "-'i•ll write their n•m•s on •ueh instrumoot •• \<Ltne""" STATE County of .. On this . . .... day of. .., A. D. 19 .... , before me, the undersigned, a Notary Public. In and for the County and State aforesaid, personally appeared aod identical p<:>r3ou.. who executed the within and fori;-going instrumenl by of to me known to be the ................... mark .. , in my presencl' and in tl1e p1·esence and as witnesses, the said . Signing the name.. c.f the said and acknow!Ecdged to me that . . ...... executed the sam!.' as ..... Cree and voluntary act and deed for the uses and purpose;; therein set forth. Giyen uuder my h:rnd. and seal the day and year last above written. ::O.!y commis.0 1on <.'X\)lrt-~ Notary Public. ( Recorded 0,... .. , Rece?::.Jn 11, 1955 l ?l 771. :::as. S. ? • ~:. Keeg2 ~corder \ .·-.• It: Oil and Gas Mining Lease .' ....[ :::: THIS A.GREE~1ENT, Entered Into this the ...... 18th ............... day ot . . ...... ~-Y. .. ; ;; ........ A. D. 19-~. between -·-.... i..E'l.S.1.:i.JL .. f_sJ:r_i_~-•-··a __ ;..tido.wer .. {J...~~.l.i.e .. Fe--r.r.i.s ... i.s .. al.so .. .knwon .. as ... Les.l..i.e._ ~ .. .Ea.r.ti.s) ......... , herelnalter called lessor, '"' ........ hereinafter called lessee, does witness:. I. Thal lessor, for and in consideration of the sum of .................. --··· -~~ .!'l-.!'}1: _J}Q.JJ.9'?.~h.~:'.".::".::".:::::~... DoUon (S ... 1.0 . ._Q.Q _____ ) "' ha.nd P•id, and of the col·enaot. and •l:'T.ements hereinafter contained to ~ performed by the i .... ee, bu !Ilia daY granted and leued and benbJ i;rn.ota. ln>H and letl unto tbe 1 .. eee for the purpose of mining and opern.tio1r for and pr"~ucing oil and gas, ca.si.!lghead gu and cuit1ghead ga•ollne, !ai·inl{ pi~ lines, bm:dml{ tank.I, "ortog oil, building powers. •tatioos. telephone line• and other •truc.-tcre-. thereon to produce, i.a•e, take care of and manufacture all ol ouch 'IUbstanceo.. aod for houi<illg and boord!nir emploree•. the loll~win1< described tract of land Jn . .G:a.r.field ... County . . .. Colar.ado .. y '-J \~ v ~~ ....... S..~.~----?,i.G.o;.r.. ___ i\_tt~.c.he.d __ . ':;-~c·r~~ ······· Boot:· zan ... P§ge.2.61 (LO·t···NUiriber t~ree ( 3) i:1 Secti'J:--, Twt=-:~ty-tT.o (22); :.o; ~lum Seven (7) in Section Twenty-three (23); Lot ~''""'ber One·(!)" in Section T·,.enty-seven. (27) ;,.• the IT or th one-half of tc.e Northwest Quarter (N!NW;i-) of Sec,ion Twenty-eix (26)EXC":: 2.77 acres of land, more or less, fo t!"·e Northe.,ct Quarter of the Northwest Qua.rter (:;;:.;-!Pl~) of said Section 26 descriced as follows, to-wit: Beginning at a corn~:<;o. l, a point in the center of the county road 810 feet .,:est of the northeast corner of the southeast Quarter of the !iio:-thwest Q_uarter (SE"¢N~) of Section 26; tl',erce north 51°4• ee.st 572 feet to to corner No. 2; thence eout!'l ))0 10 1 east 443 :::'eet to corner No. 3; thence west 673 feet to corner No 1, t:-.e place of beginning. And inciuding also 2.77 acres of l&.nd, more ,?r l~se of the southeast Quarter of the NorthWest Qua."ter (SE~N~t) of said section 26 and described as follows, tO-~i t: Beg inning ;:it corner No. 1, a ooint in thecenter of the -:--,·J .. ~v toad 001 feet west of t··1e Northeast corner of t.t,e :-:,-, l·,~.east Q.•JBrte:r of t:·.e Northwest Cuarter (s::!1rN¢) of s?. ict section 26; thenc::- South 5104• weat jo2 feet to corn•!: No. 2; thence North c:42 feet to corner No. 3; thence east ,4-7 feet to .::orner No. 1, the place of be~ irmipg. All of the above la.~d bPing in Two. 6 south, 2ge. 94 West of the 6th P.1'.. and containing 152, 64 Acree more or l eea. ' . B. The Ioiuee •hall have the ril'."ht to "'"· Ire<' of roost. 0<"--9. oil. and W•Hr foUDd on ••id land for its ooetarions thereon. necpt ·••atH from :.'oe w•ll• o! '"'e lesgor. \\-nen required by lessor, the l•ss•e •h'-'1 bury pipe lin-. b•low plow d•i;<!i. 2nd shall P•Y /or da!':'.a~e eanoed by il9 operationa to JUQwin1r croH on .aid :L~d. 'l.'" o well ...:oall h• drilled nearer than 200 1 .. t to the house or barn now on sai<l nemise• without wrinen con•ent of the l•s•ot. Lessee sila\l ba.-e t~e no ht at ._,, time dunni:-or after the expiration of thi• le._.. to r•mo•e all machinery_ fu.tur«, houoes, buildi!lf:"• and ether •ttuctures placed on oaid premb.,_, inc>..:dini:-the :-.;o:~t to draw and remo,·o all casinlf. 9. JI the estate ol either party hereto ;, u•iJPlein~ in whole or in part is e~ress!Y allowed), the rovenanta hereof >-'all erte:nd the heirs. e~!'Cutors. administrators. succeosor. and assins. but no chanl{e of 0"1let.hip in the land or in the renta1" o, royalties £hall be b!nd~ on the 1<,.tt 11 a her not;ce to the l<S••• and it has been fu:-::i;hed with the written transfer or U>iii(llnl<nt or a certifi•d copy thereof. . llJ. If the lea;;ed ~romi•~ •hall hereafte' be owned in o.•·eralty or in •er•.rate tract;;, the premises. n.-·enheles•, 1ball be de,·elope<I and nnorated 3, one lease b!-1 .'~1h1 ~0:b as~·;:~~Q ~~~~~db~.~~~l~ ~l~e t;~~~'.;_1!!,:~ :~/:~~;: ~K~,;ii.i:~1~ied~~~~~li~~r~~i ~~dt~:1 ~.~ ~~c~h:er:::;,~e t~"~ff~~tinw~~I~ ~~o~~~~~teth,•r~ct~• ;~~~"",:h;r~"' ,•011d co•·•red b}· this l•a•e may be herealter O;<':detl hY ..,_le. del'i>e, or otherwi;o. or '" furnish oeparate rnea;unni:: or r..,eh·ini:: tanks. It 1• heteb}· Hree<I that. in ·.,.;ent this le••• •hall h .. sii::ned as to a r•n or •• to paru cl ihc abo1·e d"c:-i~ed lands, and the holder or owner ol any such part er parts iba~I fail or ii: d•fault in the payment of the woponionate ~•n ot 1he rent duo from him or tte:::i. ,uc~ defau!t shall not operate to defeat or aliect thi• lose in so ~"' >< it ro a ~·rt or p~s of ••id land upon which the ••i·.l 1-.ooe or an)' aHiiwoe hereof ,:;.11 make due payme!'t or "'1i<l re~tals. l! at anr time there be •• man~ a~ lour PU entitled to rental• or roy;;Jtie<. le .. ee may w:Shold parmenu thereof unless an·: =•il all p..nfea deSll(Tllte. in writing. In a recordable inotrumeot to be ~led •nth le.B<'<', • C<'Dlmon •l'onl to r!'Ceh-e all paym•"'-' due hereunder. and to e>erute OP~ion and trander ordern on behalf of '3id parties, aud their rcwecu<e •ucce=n title. lL Less•>r herob; warrant• and ai::;ee• t~ d•fend the title to th• land b•reb d•.eribed and •I:'"••• tht the_ lessee, at it.e option, may pay and disc~r1<e any u :."n~rtf~d':; ~i h~~d~~'~h!r::Fi~~· ~:'.i~·~~;~b~·~:'i'1~~1:'b1°~:i~-\~~t t~btl;: ~r::h~~ ~t:1a~~h1 nro~';~~~~~. "t~~c~~e!th~~\~~:;~y '~~-~& ~~ ~~~f;f.a~cdc~_:-:n~eh;;:~: 12. :Sotwithsun<lin1< anr1hin1r in thi• le....., contained to th• contrarJ"", lt i< •XJ>re&.<ly agr""d that !f les;•• •hall commence dtillinll:' 0>1eration1 al a!ly <imo • !hi• loll.Se ;~ jn fore•, thi• [ea .. F-ha\1 r.maln lD !nu·• •n.-\ it• tnm •hall c~ntinu• •o )<'Ill:'. B• ouch <'peration1 or• J,lrnse<-uted and. lf produdion reorulta thor•lrom, &B Joni{ as production continues. l S. !! within the prtmarJ"" term ol this !faoe production on the leased Prerr:!s.1 •hall cease lrom any cau .. , th!s 1 • .,. •h&ll not terminate pro'Oid<-d one,..tiOll! the drillinl{ of • well $hall be co.mmenced b•fore or on the next ensuin1r rental ~•ying date; or, pro•·lded lessee bt.gina or resumes. the payment of renU.1.. in the 1 rhf1 ~:.:!e ash~:in~o~e;:~i~~t: :::~1J::1"1e';;..,a:~·.ru~~: :;::~~It~~~ I~~ ~f11;~~1 i°,J"~1h~ !~~y l(e;;o) J':}~~~~;n':ns:c~ ~~•ltei~~:da~Je~~"ie:!:.a~:ir::m~min 11~vrc~ ~-ir- i'lf{ the pr.,.,...,utlon ol ouch operations and. ii NOductio~ ,,...._,, •• '.~~~'~'~""~ t!>': :..o !oni:: ;~-productlco contllluee. 14. L.••"" mlJ' at any time IWTender this le~ hy doli\"eri.n1:: or mailinf:" • nl"1."" theNol to the leasor, or by placinr a release thereof or r!'Cord lo th• Pro!><'? COUlllY. 15. It ii ait-r••d thot thll lease lh•ll 11•••r be forfeited or cancelled !or failure to perform In wholo or in part any ol It• !mplled covenant.a, conditions. or rt~11- latlono until it ohall ba'" first boen Onally :~dicial!y determined that euch la!lur. uist., and after such find determination, l"""ee 1" i:rlven a l'e&•on&t>l• tune lh~re from to comply with any lllch co•·enant.e. conditi~. or rtipulationa. 14. It IA hereby made the duty of the le.>1ee. and the leuee is empowered, Ill the oprration of the demi•ed premi•eo. to preHnt economic and physic1\ W!"1e. to deftne the boundano• ol the POol upon whicb t!>e de111io.ed premis,,. or any part "'"Y be oituate, to coneen-e the reauvoir energy ol the pool, to prot!'Ct •nd confirm the correlative rigbt.e of all tbe owners in the pool. to derelop and lorter m&rlceto !or th• producu ol tbe POOl, and to enlor into ane..menta with othor "'""" of the t<><>l to carry out the rorei::oillg and to uoltl.ze the root and all oil. Ji::u. natural Kl.II •nd a•soc:!ate<I fluid h1drocubons therein. eo that the Pool will be mans.~"<! 1.11d o~ ateOOL l?. Thia leue and di t~ tum.1, conditiG~--'. and 1tip!Ui<>t1• •hall ertend to and h• bindini' on all auccnso'" of said l0$60r or Ju...,o, I!'! wrnu:ss WHEIU:OF, wt 11.lm th~ du •nd rur Brat abo•e 1>.·r;ri..n. Wln'ESS· :1.eco:-ded co-, " 1955 at 2: ,, . ~-'.. H, , 0 . : =-:1 .__,CC.'\ Recep:ior l 9l 771. r.;.. ::i "' ' ,, --- Book 28$ Page 56 in Seetton ........... Xl.:X... , Township .. . .... .XXX ......... Ran.ire ..... XXX ·········--·····• .tnd containing .............. _.l.52 .• 6.4. . ....... 11.cr .. , more or le .. . 2. Thi• le••• Ci.all remain in force /or 11. torm of ten (10) year. and u Jon~ thoreaf:~r as oil, ga•, casini::head i::a.s, casini::head 11a.soline or any of them U or un he produced. 3. The Iese .. •hall deli1·er lo the credit of the lessor as royalty. tree of cost, in the pipe line to "\>ich Je.,ee may connect its wello the eouaJ one-e\o:rhtb P•rt of 11.\l ol\ produced and .._,·ed from the leased premiseo, or at les•ee's option. ma_1· pay to the lessor for such one.eiirhth royalty the market price for oil of like gnde •nd gra>ity pr01·1ilinir on tbe day such oil is run into the pipe line, or into storarc·e tank.a. '· The \eo .. e s!all pay l•..,or, ao royalty. one-ei.l:hth of the riroceed• from the Sale o~ the gas. as •udi for gas from wells ..-here ns onlY i• found, and wh.,,.. not oo!d shall pay Fihy /$50.001 Dollar• per annum a,; royalty fr~m each such well. and w':ile such royalt)" i• so paid ouch ..-.11 •hall be held to he a productD.lf well under para~aph numherPd h·o her<"Of. The lessor to ha,·e ii:•• free of chull'.e from any ~s well on the leased premisea for stoves 11.nd inllide l~hto in the pr\nci· pal d<>·elling houoe on said ]and by makinir ilio O"'n connection wlth the well. the use or ui:I ii:u to be at 1he lessor"• sol• rfak and eXJJ•nse. The leosee oha\l J>•Y 10 leuor for 11as produc«l from a::y oil well and US<'d by the !e£<ee for the manufactuN! of gasoline. or •DY other product, aa royalty, one-ei)!."ilth ol the market •·aJu. of auch gas. If oaid gas i• eo\d by the les&ee, then as royalty one-eighth of the procePd;; ol th• sale there-0!. 5. II ooeruion• lor the drillini:: of a ..-ell for oil or i::as are not commenced on said land on or b•fore one year from this date. thb lea.e sh.all termlnde u to both parties, unles. the lessee oha\I, on or before one i-ear !tom this date, pay or tender to the lessor or for the leasor"s credit In the . . -......... F.i.r.~.t. .. .Ne..ti.onal. Bank at .......... C.l.e.r.w.o.o.d ... $.,.?.r.iD.£;;;.,_ .. Cal.or.a.do. or ita succe>son;. which bank and it• r;uccesson; are the 1 .. sor'1 aa-ent and shall continue a. the depo•itory or any and all eums payable under thia \eue. reirudle&< of chan;;-c• of owner>hip in o.o.!d land or in the oil and Jl."U, or in the rentals to ac-crue the;•Under, the •Um ol .. fhir.ty~Ei.ght ... and - 16flOOt.1:..s Dollan; ($ .... )8. ... 16. ...... ) which oball oPerate as rents! and co1·er the pril'il•Rc of ddenim; the commencement ot drillinll: operations for a peli<>d ol one year. lo like manner and upon like payments or tender.. the commencement ol dril:ing opera11ons mar he further deferred tor like peri<Yls •ucce,.h~ly_ All p1.ymenta or tend<,. ma;-be made by check or draft of lessee or any ... io:rnee there<>!, maile1 or deJn·ered on or before the rent.al payin)!." due. Notwltbatandinjr the death of the Je,.or. or bis successor In interest, the payment or tender of rentals ia the mano<r pro,·ided aho\·e •hall be binding on tbe belts, de•·ice .. , uecutors and adm!nistntora of ruch ~er•on. 6. If at any time prior to the dioconry ol oil or 1i:as on this land and during the t.rm of this lease. the le5See shall drill a dry hole. or holes on thU land, ~}! ~,"";es~~!~ ~b! ;~~';,i;;t1e~f p;.on'~:l~d ~p1eii.1~~~n~~r .~,~e aa;~!~tR h~~ei'na'b~~~e •;:~;.i~:d ~07~~n~:d t~i. t~<~n~extth:n;~~~~~;;t~~rai.~µk dl~~eo'f' :;,?;;:~ ~:e l~a:;em!:t of rentals and the manner an~ effect thereof !hall continue in force). 7. In case 11.lioi le5'or O<l"m a lees interesc in the abo•·e desclihed land than the •~tire and undi•ided fee simple ei;tate therein, then the royalties and rentalo herein pro,·!ded for sha;J be paid the said lesoor only in the proportion which hi• interest beor• to the whole and undi1ided f ... S. The 1 .. s .. !hall ha•·e the rll!"ht to use. 1r .. or cost. JI.""', oil. and water found or. said land for its ooerations thereon. e.ocpt "·ater from the well• of the lessor. \\11en requit•<l hy lessor. the lessee •hail bury pire line• below plow rleoth and shall pay for damage caused by its operation• to J:Tol'."inR crops on said ll.!ld. :So wc11 shall be drilled nearer than ~00 i,..., to the house or ham now on said Premises -.·ichout written con.eat oi the loosor. Lessee shall hal'e !he rii::ht u anr time durrni:: or after the upiralion of this le""e 10 remo1·e all machinery. Jhtur.,, houses, builciini::• and othc·r •tructures place•J on o.aid promi,;<S, includin~ ihe ri1i:ht to draw and remo\"e all casinir. I>. Ir the estate ol •ither nartl" hereto is •s.izned (and th• vrh·i!e)!."e o! a.,;i1tTiin1i: in "'hole or ln part is expr~ssly allowed), the co,·enanh hereor shall erle.nd the hein;, e~ecutors. •dmini>trator.: sucre .. nrs ao.d a"ii::ns. but no chan)!."e of ownership in the land or m the renra\a or roraltles WU be binding on tbe le""ee u after notice to the 3.,,.,. and it has been fumi•hed with the written transfer or OS•iirnment or a certified copy thereof. IO. It tbe lea;;,d premi•eo shall herea!ter h owned In •H•ralty or in separa!e tr•c1'. the premise'!. nel"enheless, •hall be de;eloped and operated a• one Ju ... all royaltie" accruin" bor,mtdor shall be t,.ated as an entirely and !!hall be dil"ided amon~ and paid to such >eparate owners in the proportion that the acreue ow hr ~ach such se~arato owner bear; to the entire ]ea;ed acreag•. There shall be no obli"ation on the pan ol the lossee to offset '>·ell• on separate tract• into which ,'•n•l co•ererl b~· thiS leue may be hereafter dn·ideJ b)· ... 1., dHise, or othen<i•e. or to furni•h s.parate me~sur-ini: or recei<inir tanks. It 1s hereby an•e<l that. Ul ·~·~~~~ltt~~ i~:s;.;~~~" ~! a,b';~:~J>:~i~~a~e P:a~t ~rl :~e 1 ~c~t"~~e 0ir~~e b~~'dr ~;i;;'.b~c~a~·;~~uj~dsh;~f ;:tldi~.~:te0~~"de~1at':J; !fi~~t Pt"hi~ J:.:.a7~ :!al!r 1~~ i~r ~ a t_•rt or p.ltto of ,._;d l>nd upon which the aid l•so•e or an)" U5'ignee hereof ehall make d~• .P•Yment of ••_l. JI at any tim• there be u many u four PU enhtled to rema:s or ro)•hi<>. l••see may ..-11hhold payments thereof unl•-"" and u.nt!l all p:rrnes des1Rnate. in wntrn)(. !n a recordable 1n.irument to be filed Wlth lesa..•e, a cooimon ai:-cr.t t•, ,ecei1·e all paJm•nts due hereunder. •nd to ~xecute di\"1<1on and 1rau,Jer orders on behalf ol said parties, and their >O"Jlfcth·e •UCCO•On titJ~. I I. LesMr hereb_< warrants and al(Tee;; to delend the title to the land herein deS(riheent 1t exorci'"s such option, It shall he subroi::ated to the lill:bl any bolder or holders thereof and may reimbur>e it,.H by applyinl( to the discharge ol any ruoh mortgaire, ta~ or other lleo. lDY roy1lty or rental• accruloll: heretil 12. :Soiwith>tandinz an.nhin~ in thi,; lease contained to the conuo.ry, !t ie e:rpre£<1y a;-r .. d that [f lcs,;ee 1ho.U commence dlil!fog operation• at 11.ny time 11 thi~-Uue is in lo"'•· 1hi• lease f.halt remain in forr~ •n~ it• tfTm •haU continue oo lon1i: •• rurh {»><'rations ore prosecuted and. ii production result• therefrom. !Ui lon1i: a• production cor.tinufi. I3. II "ithio !he otimary term ol thi• lease production on the leased Premises •hall cea•e from •ny cau.e, thi• 1'ase shall not terminate vro•·ided ooeratio111 th~ drillinir of o v;ell •hall be comm•nCeJ before or on the next ensu!nlt rental payinir date: or. pro•·ided lea•ee begins or reeumes the pa)·ment ol rentalt in the r ner and amount bete!nabore pro1·ided. If. 3her the e.•Piration of the primary tum ol thi< lease, production on the leuod Premi•ea aha!] ce ... e lrom •DY Cl thi• l•a.se shall not t•rm!nate pro•·ided lessee re•umes operation• for drillirul: a well '>·ithin ,;ny (60) days from such C•SSation. and this lea.e •hall remain In force dur- ing the prosecution of •~ch over•.:u~• ~ .. u. ;; ,...u,:uu.:u .. ·~•u; ••• a~,_;,om, th•n as lonll'. u production continues. It. Lesoee may u aor time rurreoder thi.o leau by deliterinir or malling 11. releue ther.of to the lea:aor, or by pladog I N!le11e thereof of record In the prouer county. 15. It Ii airreed that this lea.e !hall ne~er be forfeited or canceUod for !allure to Perform in whole or In part any of ita implied co10nants, condition&. or 1tipu- lotlons until it Bh•ll h._,. Orn! bun ftnally Judicially d<termlnod that ouch failure nlot.!, and after ouch final delermillat!on, le..oee is gi~en a reuooahle time there- from to eomply with lny •uch co>'•o11.nt1. condit\on.s. or otipu\ationo. I G. lt ia hereby made the duty of the leMee. and the !"""'" is emDOwered. in the oporatlon of the demi9ed premi•.._ to pre>·ent economic l.!ld PhYBic•I <l'&S!t. to deftne the houndam• of Ult J>Ool upon whieh the demioed prem;, .. or any pan m•Y be •itul!e, to conae..,e the reoervotr energy ol the pool,_ to protect and ~on6rtn the eorrelati•• lii:;-hu of ail the owners In the pool, to de\'OIOD ind fo•t•r markeu for the producu ol the pool, and to enter into ~~ment.! v;ith other OWilers of tbe pool to carry out the forei:oing and to unitize the pool and all oil, g-.,_ natural o:rao and •'"ocfatM 6uid hydrourbon• therein. so. that the pool w!ll be m•nall'.ed Ind ope,. 1\ed aa an enlirtlY. and all unitize<! oub;-tancet produced from the pool ahall be &ppori!oned and aUoc•ted on •n acrea)!."e b .. 11 to the oevenl tncta comprwna: the P<>ol. I 7. Thie leaoe l.!ld dl it.I terms, condiUono. •nd otiulatlon• •hall extend to and be biu<iing on 1!1 oucceuon ol oald ]eMOr or lU••••· I~ WlT:sESS WHERLOF, we •lll'll the day and yur ftrst abo1·e ~·ritten. WlT~"F.SS: STATE u'····························-···· ············ ·······················I "· County o> ............................................................................ . BE IT REMEMBERED, Tbat on tbls . . day of .. Public In and for said Coui:.ry and State, personally appeared .. ACK.'\O\l;L.EDGME:-.;T, Applicable "Where lands are ln Oklahoma. Kansas, Nebraska, South Dakota, Arizona and New Mexico . ......... A. D. 19 ....... , before me, a Notary . ......... to me known to be tbe Identical person ... described In and who executed the wlthin and foregoing instrument and acknowledged to me that . executed tbe same as .. free and voluntary act and deed for the uses and purposes therein set forth. In Witness Wbereo[, I bave hereunto set mY official signature and affixed my notarial seal, tbe day and year first above written. My commission expires STATE OF .. t..:ounty or.. .............. GCLORADO .. ... GAaF.!ELI) .. Notary Public . ACKNOWLEDGMENT, Wyoming or Colorado ~~:;~~~~~~~:~~~-~~:~~-~-n--6~::~~~esli.e .. F.ar.ri~----~:l::~::::~.b:: ~~::~.ir.:~ .. ;:l.~.:.:.~:~s~~d State, do hereby certify that , "·t':: .._, ' t .. ru. me to be the person ... whose name ................. ie... subscribed to the within Instrument, appeared before ..._:,:. •.1-~ •• : ~-~ · iltJit;!If,and acknowledged that -........ be ............. signed, sealed and delitered the said instrument of writing as . ~:!,Ji~. • 4~~:;·~~ toluntary act and deed for the uses and purposes therein set .!orth. ~ ~?;~~'.'.~~;~t,;:od:::~:;\,t:~;l8th················· d>yor.~)(ay;~ ~~~~~::;::: • ·i1 1 qr\;t.· P. o... .~.nY.e.t.,. ... C.olorado .. STATE u>·~········································································/ "· ACKNOWLEDGMENT, CORPORATION County o<. ............................................................................ ·) Before me, the undersigned, a Notary Public in and for said County and State, on this ....................... day of . 19 ....... , personally appeared to me known to be the identical person vtho subscribed the name of the maker thereof to the foregoing Instrument as Its . . .. ············-·· and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set !orth. Given under my hand and seal of office the day and year last above written. My commission expires 0 ~ P. 0 ... Notary Public. .. -, .. OKLAHU~IA YUll!l (J}' A~KSuWLJ::DGilEST \\HUIE GRAS.TOR SIG:->"5 BY M..\.l(E: · :SOTE-1\"ith relerene• to Oklaho:r.a hncl•, when this instrument i• si£ned b,· .11. Denon who cannot ,.-rite ~i> name be shall e<ernte .the same b)· hi•_ mark, alld hi< name aha!J be 'IH-.Cten near •ue1 mark by one ol two per;ons "ho saw such mark made, ,..ho shall "'·'" their names on •UCh insuumeut as "ltne .. es. STATE OF .. · f:ounty or... ·············•••• }" On this . day of . . .................................. A. D. 19 ....... , bf!ore me, the undersigned, a Notary Public. in and for till' County and State aforesaid, personally appeared aod identical per~on. who eitcuted the witllin and foregoing instrument by and as witnes5fS, the said Signing the name of the said and acknowledged to me that . . ... executed tbe same as tbe uses and purposes therein set forth. Given under my hand and seal the day and year last aboYe written. commission 10xpires .... ............................ ............. . ... to me known to be the mark .. , in my presence and in the presence ....................... free and voluntary act and deed for :-;otary Public. ~· !! ;.... . .,:: -'·:.... ~ Reception Fo{m L. B. 88·42 KaJL, Okla. & Colo. THIS AGREEMENT, EIIL•nd 1nto tbu tb••-----l~?LJt~h._ __ dar "''---~Q~c~t~o~be~r~-------- ----------------------------------------~ere!nalter caUed leuor. . 1uch 1ubato.nC•lii·:ih~ tor housing and boarding employees, the following described tract of land W1"~---"G~AuR~1"LIT4E~Tu.P..,_ _________ _ .. , cou.ntr ____ C"'-'Oc.L<>O!JRADCY>,,_,,Q._ ____ to-wa: __________ _,,-\,,---------ill ,_ ___ _ 1 '. I , ~~~~~' ~~., 1 ~+' Section 25: -.. ·"' ·-~. "' Section 26: ; , . Section 35: Tract No. 2 Section 27: Section 34: ( C'·''O 33 SEE RIDER ATTACHED Towship 6 South, J!ange 94 West, 6th P.M. ~l SWtwt SEt; s!J!Et; *'*; ~; SEkNWf.less approx. 2,77 acres de- Bcribed as nBeginning at a point in the center of the Count7 Road 8ol' 'W. of !IE-corner of~' Sec. 26, T.6 S., R.94 w., thence S,51° 04' W. 702 1, thence 11. 442'1 thence E. 547' to the place of beginning"; Portion of 11EtNWt containing approx. 2. 77 acres described as "Beginning nt a point in the center of the County Road 8ol' W. of the !IE corner of the SEtllWt Sec . 26, T. 6 S ., R. 94 W., thence l/.51° 04' E. 572'1 thence s.30° 10' E. 443', thence W. 673• to the place of beginning" NWt!iEt Township 6 South, Range 94 West, 6th P.M. wt 7, and SEf;BEt except that portion of the SE-ksEt qing llorth-l, westerly of the County Highway as the same was on March 14, ~ll, ,, ,,. ,., constructed over, through and across said 40 acre tract, said ..f{.v. "' e~cepted portion containing about 15 acres. y.se;.30 ~t 1, ~sEt, NEt, EM ~ A~e Such lands in this .Tract No. 2 being the la.nds designated a.s Red Apple Orchards in the plat spo"ll .in Plat Book 2, Page 16 of the Records of the Recorder, Garfield CoUnty, Colorado. ·zxcepting anC ~·eserving unto the Lessor, his heirs, successors a!1d assigns, all of t!:e gas 1 r J and ~asecus _ substar:ces in all hor1ZO!"!.S and formations in ana mder t.he ~ .. '~'Jf'-;i Sec. 25; ..,..~ .. \. N*8E~) s~:_s~~ ::.1;S·:i~, 12~5",·f~, S':l 1;SE~· Sec. 26; Lot 7 and SS}sE~ Sec. 27 except that portion o.{ · tlle SE-:;-SE;i-l:r'...ng N"orthwesi::erly of the Count:,· Highway as the sa..>:;e was on March lL., 1911, constructed over, through and across said L.o acre tract, saidexceoted portion containing about 15 acres; E~.ft, '··%E~_ Sec. 34 l:ting above the de::th of tw-o th9~ana (2 Q:Vl feet be.low· the surface, and the right to explore for,,prbduce, treat a~d CTa'i-'ket such gas and gaseous substances. ' ~~·~·---~---·------·----- -'' ,, . ,, .J~o"e'"°"T'".-.J"UHall==--~~~~--------. ' j I l '' ., . ' '~ !?b9k'290 Pae 6 _¥ ----____ -'l/fk . In Seetlo Townsb! , Range and cont&IDll:!i' 1 OJ 6 )0 •ere., more,.. llM. ' 2. Tbia Juae gball remain In foree for a urm ot ten 1101 years and as lon1 tbere&l'ter u oil. gu, culn11head ,.,., culn&hts.d U produced. ruollne or a.u7 ot ~ II> 3. Tbt lalaet IJll.ll delJTer Lo tb.t eredlt of Ute leuor u f07"1$J, fl'M of lallt, bl I.hi pj;pe It.Ile Lo wblcll 1-.., ~ Ill ...W tbe equ.1 G11.t--11!1U!. I pt.r1. of all eU prodlleod ~ aued. ff'Olll. Liit leuect pnmlMI, w at tbt ..._., crpt,lOn.. 11u.7 pay Jo tb.1 Jeuor fCll' Alb _....... Nf'attJ' ~ lll.irl;irt prtot tor _ o':'_or_ ~i-~~!-&11d IH'fttJ' Pr•o.Ul'!,~_on 1_!~~ aueh oil II nm tni.o.'1!~ p~e. or l.lll~~r~ . ..u. ~---."~--..,.---- ill'._:~:.~§~i\:~{~gH§t~~1~·0~f'i-'.:i. :~-:·: ·2:~~. :=----~!·~~~-:_:i ~·:·. -{~~:< .. ~l;:~;~~~~;~~;,-~;'.i·:·: ~Li~:-~_:_..~-~~~ , 4. '!'he .lessee shall pay lessor as royalty one-eighth of the proceed.a !roa the sale ot P' as HUch for gas frolli. veils vhere gas only is fotmd. Where gas is not sold or where the ro~ &ltie.s_ &:>~ .. _,t eq. ual the annual delay rentals as set forth in paragraph 5 hereo:f 1 t. his lea'se. · shall te · · __ unless the lessee shall pay on or before the date that such delay rentals are due or aey s\t9_ · uent yearly anniversary thereafter, whether or not within the primary teri., a sum of money which shall equal the amount of said annual delay rentals, ·w'hich payment shall continue this lease as a producing lease and the absence of such payment shall terminate said lease. The lessor to have gas free of charge from any gas well on the leased premises for stoves a.pd inside "l"igb.ts in the principal dwelling house on said land by ma.king ·his own con.nee ... tions Vi.th the veil, the use of said gas to be at the lessor's sole risk and expense. The les- see shall pa7 to lessor for gas produced from any oil well and used by the lessee for the manu- facture ot gasoline or any other product, as royalty, one-eighth of the market value ot such gas at the ~uth or the veu. / ~ \I leuO.:.~~~~·\;'~~'..t;;~r;'sSeeshiJ1-~~;-~ow i1owCleptnfii'ns1i.nr-Pnh6i''1a!n&ri"e~ by Jt• oPeatloc.s to growing eroPs -oil i ....-~"id 19.nd. No wel! sh9.ll be drHled n.e&rer tha.n 209 feet to the house or barn DOW on sa!d prem!ses without Wr!tlen consent ol the ies.sor_ L .. sl!<! shall have th• _,....-right at aoy time dlU'll>g or alter the upU:ati<>n ol th!s lease t.o remove all maCb!ntry, fl:nures, hoUSh, building• and other 11ruCt1Ues placed OD said pretn1ses, !ncludiog the right t<> drn• and remove all ctl.s!ng. ' 9. rt the utate or e!ther party hereto lJJ a5.1ll!1led (aDd the Privllege o( assil!1l!ng In Whole or In put ls expres•IY allowed), :he covenants hereof_ shall extend t<> the heirs. uecutora, admJnlatn.ton. successors and asstgns, but no Cllange of ownership In the land or In the rontalA or royalties shall be binding on the Jessee until ..Cler notice to the le&stt a.nd It b9.S been furnished with the written trander or au!gnment or a eert!!led copy thero<>t-_In the event tbl• lease shall be assigned u to a pan or u to pans ol the above de:s.crlbed Jands, 9.nd the holder or owoer ol any such part or par~ shall Jail or m9.k~ de!Bult in the payment of the proportionate put of the rent due !row him or them, such default sh&JI not operate to defe&t or a.Hect thl• lease in so lar M it covers a p9.r1. or parts ol said land upon which the utd lusee or &ny ass1gn..e hereof shall make due p&yment ol said rental•. rt at _any :lme there be as many "" __ fo_UL.l'!'_rt!e_s_eJ!tlt.l.N.tlLJ:eQt~U-9_t_royalties. le~ee m&y W!tbho:_d pe.yments t_heteQ.f_unless and until &!l parties des!gnate;-ln-v;tit:.i:i. in a recordable icstru-Jl ,-, men! to be filed •!th the lessl!<!. "co111J:¥_On agenl_./-_O receive ,a:J payw_i;nt~ due.,hereun~r, and to ex•"l.l.l"-!ilV!sloD "l'd tran~ter ordo:~ on behalf ol said parties. ty f and their respective successors 1n tale.oy l;;nrOUf!:n anu unaer Le~or UUl.. Il01;; otnerw1se '" :-1 10. Lessor hereby warrants and 9.greu t& del•nd the t"T!!e to the l&Dd bereiD descrlb nd aJees that the lessee, at Its opt_!on. "'"Y pay and dhcharge any taus. mortgagos. or other Ueiu existmg, levied. or "-S•ossed on or against the above escrlbed lo.nds and. ln event lt eurcu;es such option, It sh9.ll be subrogated to !be rights ol o.ny holder or holders thueof and may re1mbur.., ltselt by applying to the discharge of any such mortgage, tax or other hen, aDY royalty or rentals accruing hereunder. v;h!J~ \h~0i:.!!~11tsa~~i 'i~.c~~ytt~/~ ~e~e t~~!1/"~:!,.c~nt~!nf~~c!0 .. ~~e i;:'0t~·,•~Y ·.~~Js c~~ri'ci~~Jysoa~~~": ~~astu~h 1 ~~:r",.~1~~~ ~~~~i~.i:ci:'t:.f"~d~P~f a~~~~~c~:o~n ~.!~ri; therefrom. then as long as product1on continues. tion;2iorilth~11~r~ll~~e o~r~m!~ ~!Jib~ 1c~~~ee~c"eJ''b~~~~10o~ ~~ i~! ~·.•:cec1e_~ru~i:;i~s~senst~illp~;~~~ 'J:~:a~r c;~i:id~~1 "i::::; g~;fn.n~tr 1 ~~~1~:;• t~reov~~~-~~~i'~f rentals m (he manner and amount here!Dhefore pro1·1ded. It. after the expiration of the primary torm ol this lease. production on the leased premi5"S shs!! cease lrom any cause. thls Je"-Se shall not terminate provided les.s'1! H•umes oper&l!ons Jor drUllng a v;ell Within sJxty (6()) days hom such cessauon, and th!S le .. se s.baJI remalo 10 force durlll.g the prosecution ol such operations and. JI production results tberetrom. then o.s long as production cont1nuos. IJ_ Les.see may at any time &nd lrom time to time surrendor thU l•Me as to any part or parts of the le&sed premlJes bf deUrn!ng or malling a release thereof .lo the les.sor. or by placlllg a relea.se thereof ol record In the proper county. H. This·Je,.se and-al! Jts terms, condlt!ODs, and stlpulat!om shall utend to 9.0d be blDding on all succes$0rl of Hid Je .. or or lessee. 15. Tb!s lease shall not be tenninated. in whole or In part, nor sh&ll leUI!<! be held liable Jn d9.mages, tor failure to comply 'With !he express or Jm· Pl!ed covenants ht.reol. J! compliance there~Jth ts prevented by, or II such !•!lure ,. the result ol, 9.ny Federal or State law1, Ul'eutlve order•. rules. or regulations. II, at the end ol the primary term bereor. such term ha& not been ez-tendtd bf production or drilling a• in thlJ le .. e Ptov!ded. and lessee. by rea1on of any of ~he aboV• recited ea.uses. U uno.ble to drill a well on the leased preml!:e• for oLI or gu, the primary term 'nd !he re111al prottllon hetP<lf aball be enended automatleally from yur to year unt!l th• lint &11nlver .. ry hueof occurring ninety !POI or mon day1 toilO'll'lni the '"''OT&! of 1ueh de!.,ylng cause. Dur!na-any period that lessu !s un&ble 10 prOOue: &11d/or market a.ny prOOuct1 from the leased prem1Je11 by nuoD of any of the ab<:n"I recited uuou. thll Jeue atiall remain In full torce· and Ufeet. If. Lessee I& beub7 lfl•ffl the rich! &t ~ option, at a10 7 Ume and f;"Om time lo time. to pan! or unltln &1J. ~r.n7 part nr Plrit 61 ·~-'" E.- scrlbed ta.nd wltl;> other i&nd, leue, or le.uea In the Lmmed!ato v1cin1t1 thlreo!, •uCb P>0llnJ to be Into unit.a not e:s.~r lbe mlnil;aum slse t;..;:;. '"" 'Whleh :u~•l:n:~i!: g;u~~ ':!:~ t1::!'.·~e:;,.~~ ~t~:!lo~'ce~ ~r~!a!::; ~im:ro.°ir 1t'!cb:0~1 ,:),r a':!~~t1~D~~f:~:!'a ~~w~ ~su~':1t~1.=.':! Hid optkw, _s...tlt/eaeb 11.Mlred unJt, by encutlnl" ud fl!COrdlni an Instrument ldmtlf)"lng lbe unltl&ed ue&. AnY ..-eu dr1lled ~ operat1on1 ~ on ~M.Oll iNah ~ ~IM _~ed a 'Well drUled or oper..uoitJ .:on<hu:ted Wider thlJ Jtue, and Uiare lb.U be Llll>C&ted to the portion Clf Ult! , •bon ..._Jtiel .b.114 .,..._. 11111 llllJ' ..e 1Dltt -a ,.-oPOrt!on at as -ltll ,....._ ~ all •ellA on 1ucb unJt "3 !euof'1 1nteru1, If any. l1l ...,.- POnlan,. elllli~i!-.......... ....._ illMn a. &bt 11nllrt aerup fll. nail ..._ .... Ii Ill ~ MW! ......,.. that tht produ~tlon '° &IJotated . • be ~-'Ill! -~ l!9llD4llll U.. ~ or do.linry ., J'01d1, a. lie ~ tat1" '"4oaHoa ti.. llM. portion ol Ult. abo'f'e dutribed I,.. 111• ·"' ctlldf4 .. lllQ . _; ___ ..... -W Milqli. ffld,UOed frO!ll tk U0Te· ~ 1-M. 1Pl4ft \be ...... tadl leut. .•. .' -1-----. ---------------------------------- . . . IN lt1'nmll 'ffBIUO!I",_-!"·• -a. -__, ·-,.U ... d lbart nttta. ., • Joe T. Jfill.iii ,- ..... : __ .T~h~e~~F~1~r~s~t~N=a~t~1~oun~•~l~~Ba-~a~k~-----~·•·nk at GJ enwoad Spr 1 ngs 1 Colored o Jts successors, wbJch bank and Jts successors a.re the le:ll!or's agent a.nd shall continue u the depository of any and Ill S'Ollll payable under thl• lea..e, r'" gardleu of ebangU of o,..,.ersh!p !n oa!d land or in the oU and gL'!, or In the rentals to a.eerue thereunder, the awn G<------------- Seven hundeed thirty six dollars and 301100---nGJlau tt 736.30 I whlcb. shall OP<!rate as rental .and cover the prlvJlege of deferring the commencement ol drilling operations for a period of one yur. In like manner and upon Hke payments or tenders, the commencement of drilling operations ·may be further deferrod tor like period$ •1JecesS1vely. Al! paYments or lenders rnsy be made bY check or dnft of lessee or anJ' arngnee thereof, ma!led or delivered on or belort the untal pay!og date. Notwithstanding the dbtb of the Iusor, or hi• !ll«eU<lr In Interest, the PUment or tender of rentals Jn tbe manner provided above •hall be binding on the heirs, devisees, executors, and admlnJstralor• of such perlOI>. 6. It at any time prior to the d!aeovery of oil or gas on th!s land and during the t.rm of this lease, the !esse.. shall drill a dry hole, or holes, on tbl.I aM, thts lease shall no! termJnale. provided operations tor the drllllng of a "''ell shall be commenc«:I w1thln twelve months lrom tbe up!rat1011 o! the last rental pUiOd for which re11tsl bU been paid, or provided tbat W!<b1n sB!d period the lesstt beQ1ns or resume• the payment of rent•b In lhe manner and amount bereiL abo»e -- provided; a.nd In tbJS event the preeed!ng paragraph! hereof govern.Ing the payment of rmtals Bild the manner and effect tbereof shall continue ln loriioo-J," · 11 7. In case sald lessor owns a leu lntenst In the above described land tban the en!lre and und!Yid•d fee sJmple estate therein, then the roya!Ue. t 1'J t ~herein provided tor llliaU be paid the nld leuor only in the proportion which hJs Jxi1erest bean to the whole and undtV!ded tee. 0/. ! t. The !eue-e •hall have the right to uae tree of cost, gu, oil and water found on said land tor Jts operation• tbereon. e:rcept w&ler from the wells of the • .~e.•,~tlanT''Wo ~~l~~~11bkl~":;j[~t~!a!!~~ha~h~~9 b!~ fdPt'h~t~~";,s!"~~"bf:~wn::P~~ :~I~ ~~~if.";' ,;~~o':i~m:~~t:;u~,::t 1!~ ;::r1!~~~s f!.,~~o~~~t ~rao:e" t~: . { _.,,,.-·right at any time dlU'!D.f or after the e:rpti:atlon of thU lease to remove all ma~hln•ry, !inures. hous~s. buildings a11d other struttures placed on ·said PtemJ:ott, ~ 1ncJud1ng the r!ght to draw and remove all cli.i;Lng. ' 9. If the estate o! eJth.r party hereto Is a:ll!!gned (and the privilege o! assigning lll whole or Jxi put 1S upresaly allowed!. the covenants hereof shall ~>:tend to the he!r5. uecywrs, admln!atrators, succeJ.SOU and assigns, but no cnange of oWllU•hip Jn the land or !n the rental.! or roraltles 5ha!l be b!nd!ng on the lessee untU after notice to the lessee and It bas been lurn!shed wltb the written tnn.s!H or ualgnmellt or a certified copy thereof. In the eYent thts lease 5hall be asstgned as w a pan or as to parts of the above described land•. a.nd tbe holder or owner ol any such pa.rt or psrts sha.ll fall or make dehul~ In the pa1ment ol the proportionate part o! the rent due fr!>ID him or them. such <1.etauJt shall l:\ot operate to defeat or alfeot this lease In so far as It covers a part or pans ol said land upeo Which the said lessee or any usignee hereof !hall malte due payment of said rentals. _u_!t,_any Ume there be u man)' .., four___yartles_entultd...ta._rent~!s or royalties, lessee may Withhold pa,yments_thereof unleJ.S and until all parties designate, In wrumg, lD a recordable 1nstru-~ ~ • -lnerit tO Oe-f1led With the lessOe:li-com~on a gen.!_ ,t_o _Jecelve .,a_Jl ·paym_;iit~ dui ,Jieii'Uiltt, and to eX•oU.l<;.Jl.iv!sion !jnd traru!er order:-; on bebalt of said parties, ty' J and their respee1n·e su~eesson Jn t!tle.oy ~Ill'OUE!:Il anu unaer ~Or UU\. IlOii OtherWl.59 ~ :-, 10. Leuor hereby warn.nts a11d agre<os tt delend tbe il'tle to the land herein deter! Dd aJeo !hat the les.ee. at its optton, may pay and discharge any taus. mortgages. or otber Uens existing. te.,ied. or a..sessed on or agaJnst the above esor1bed lands and, Jn event !t uerollies such option, 1t shall be subrogated to tbe rights of any holder or holders thereof and may reimburse !ts~lf by apply;ng to the d!scharge ol an1 such mortgage, ta~ or other !:en, any royalty or rentals accruing hereunder. ,..hil! 1 ih ~0~:!~s~a~i1 ~!rc~~~~l~~e~e t~~!1le~;~:1~nt~lnf~c~0 a~~ e l~~~r~ry~!llu c~~t;~!1 rso8 ~~~e;1 !~as1u!~ 1 ~~s::a:i~~~ !~~";i:s":cudt~~ll~~d ~Pl~ra~~~c~ o~0 ie!~Ti~ therelrom, then a$ long u production contl11uu. tion;2iorrrth'!ltk.~u:' tr'~m~7ll t~!LJ ~ ~~~~";; • .frb0:1~;~1 ~i ~~ :~: ~~~~~:S~"in"'is~~n"t~i 1 ~!~.~~~ fJ~~:a~~. c:~~:id~~u1~!::: :~~~.n~tr t~:i~~~· fh;"~~;~~~~t~i rentals Jn tbe manuer a11d &ulount herelnbetore provided. If. after the e:rplratlon of the prl!llary term of this Jeue. production on the Jeased premises 1hall r:::: i!,';,i°l r~~at°na~~e, !~~~ ~~bt~lJe ~~~.~~ru'it1.:'n&t~f p:~~ d:C:.e~~StS!~:e:::ii"."ff 0~~~~~~6~o:.:~~~te~e~re~~~!:g~ ~:iro~:i; .. /~~~f~~:t,~IJ~n~~::u~~t.on, and tblS JJ_ LesMe 111ay at &ny time and lrom time to time surrender thU lease u to 1-flY part or parts of ttH, le•ued premlaes by dellver1ng or malling a relea.se thereof.-to the Ieaso!, or by !llac!rlg B releai;e thereof of record Ill the proper county. 14. Thi$ lease· and-all JC& termt. condltloM. and stJpulatJon• shall extend to and be bllld!nr an all succeasors of •aid leasor or le.sue. IS. Thls le.&se ilutll 11ot be tennlllated, 1n whole or m part, nor •b~ 1u.att be beld !!able 1n damaret, for tlllure t<l comply •Ith tbe express or Im- plied covena<1ti b-Ueof, tt wmpl1an04 therewJth 11 prevented by, or U •Ueh !ailure ls the r~ull of. a.ny Federal or stlte laws, e:reeutlve orders, rulei.. or regulation•. If, at tbe end of the prlnla:y term hereat, 1uCh term hai not ~ enend.td by ptodUe-Uon or drUUng u In tbJ1 leaae proYlded, and leo.11e-e. ~~r!~~~.llf ~U:n~~J~ :=!:t~~~ ~~=·;e1:r ~a~~· .. t<J u~Uill t:e ~~1.i 0~ur:.;:::,edb!'::on;~~~;1 ~~~1:-:w)t~•r :~·z,.~~o;::!r 1t'J. ~:~ delaYlll( cau.w, Dur!nr any perJDd that l...,u ls Unable IG produce and/or inarket B0-1 producu lroin the le"66 prem.1.tea b7 HUOU ot any of Sb9 "'°" r«-!ted cau1e1;\b1.li lea.te &hall remain In fu1J tore.! and ffiect. f; 18. Le..aa. 1£. h••Bl>f JlffQ U>I rlgh~ M 14 Optlo<l. a' ..,, time lllol """'""'-tlnte lo \bl, io !)(l'!I OI" uiUUw -.It w-.mr,7 ,pa.rt .flt ~ ~ 'f $)~ scribed land •ltJ;l t1thl!r land. lta.s.1, or l"5M In the Immediate rtcinlly th~"<>t. rueh p:>ollng c.o W 1nt<l llllltt <1ot ueMdinl' Ult l!llnl-luw:a lliM u:;;;;.-\\· a ••II may be•lhfilM undtl' lt'WS, rr111e1;. er tesulllllan.a 1n force 11 the 1lme of rneb poolln1 er un11ua11Pu1:·. Ptorid9d, .bn•n·nr, \hat\ llUb; IU!Jt1 IUI ~ ] ::f: :=um '!..~ l!l~.UU~b~c:re"!e~t~~~ .;,~ce::CO~d(..7~~tni!."::i ~ai~~~ :, ~tj~Pu~1 ~etir 41~ 1:~~ ~ ?: .-,.: .. ~ . ~.,...~~bl~• •ell 4rtlled or Gpe~ Den.di::io:tecl UIM!er ihll leue. -IUld lhtre lll&U, M &ll&eated t<J Ill• poruo11-llC.IM 1 l abore *-ilNll,_laad:-....... w.. _,, •• '&llU llldt )roportlon ot t¥: .-.fil ,......_ tNm I.II w1lb Ol1 ruch ll?lll u 1-tor'1 Jntgru>.; I~ an,. t. ..... "" ... , • DOrt!_~~· ~ -.n I.ti '\M mure ec:re.r1 .r AG W1aL ..._ • ii ........_ ul: _.... tb&t Ult lll'DdUetl011 ao al!Di:lltld -.al· " ;J ~ll~-~---...==-~~~~e:r::r~ ~.:.::.~~=--==rc~~ of th•~· datrt.bed 1.-1&-:f' .p -~~ -::.____. ____ .. ;...;;.;~-~*r"aho'f•wrlt-.---· --------·-----·-~~-. '· ~, ~ -1<· \ ··:, Joe T. JUhii DOO:\ t'.. 'jV Page 7 STATE OF } - -------------ss. ACKNO¥i'LEl?GMEN1 R IXDTYIDUAL \Kans. Okla. and Colo.) COUNTY OF Before me, the undersigned, a N"otary Public, within and for said County and State, on thi~---------- day ''~---------------~ 19_____, personally appeare~----------------• an<>.---------------------------------------------~ < to me personally known to be the ider.tical person_ who executed the within and foregoing irutrument and acknowledged toi~ .~ · .. ' ,. tha executed the same ree and voluntary act and deed for the uses and purposes therein set fo~ (.. i- "·' "\ IN WITNESS WHEREOF. I have hereunto 1et my band and off1cial seal the day and year last above written. f • -" (. . My comminion ~ire '·' t , ..,. .· , . :: Notary Pubhc L ~:~j STATE OF·~· ~:~ } . .,,..., __,. OOUWft"·x·· · .. ;\~ . ss. ACKNOWLEDGMENT FOR INDMDUAL (Kans. O~~-a?~. Colo.1 !-'~-~&igned, a Notary Public, within and for said County and State..,_ till• ttft ·2ltb ., . ·-. ,, 55 J~ f Juhan da;r IA·~ · ~..,.___ , 19__, personally appeare"d ___ _c~:__;_,.~~~~-~~°"'!"S'::~oo--- a•d,':-',l~tJ~.~ tcf nfe .~~-~dml.J&~~ fU .be the ider.tical person............ who executed the within and foregoing instrument and acknowledged to me tfu>j.: ~'@~.fJ. "efsam. e as ~is ree and voluntary act and deed for ~e uses and purposes therein set forth. ~ ~ ~ ~ '-. . REOF, I have hereunto set my hand and official':.:.al the d3f and ~e~ Jai;t !ill£.'·: written. 11 ,-;o,.,~ -· ·;i\M,~' :th nl ,. 15 l956 ---yr;<,. ~ ~~ ',~ir;·~~!,·~ .. -· ' .. -...... ,.--Xotary Public ...... _;:-.~.~ ·1~.U~';:;,, ... IJlfj01"t",r•f-•• STATE OF } COUNTY OF-------------"· ACKNO'\\'LEDGMENT FOR CO~PORATION Be it remembered that on. t~is ___ day of ______________ ,, 19 __ , before me, the undersigned, a Notary Public, duly commissioned, in znd for the county and state aforesaid, came------------------ ----pr~sident of--------------------------------· a corporation of the State of , personally known to me to be such officer, and to be the same person who executed as such officer the foregoing instrument of writinj:(' in behalf of said corporation, and he duly ac· knowledged the execution of the sarn-o for himself and for ·said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal on the day and year last above written. My comm.ission expires _______________ _ t ii fl J I " " 0 8 " ~ ' I 0. 1 Notary Public ' z .... ~ .; ,-· .. I ~ i NOTE: When signature by mark ii: Kansas, said mark to be witnessed by at least .one person and also acknowledged. For ackMwledgment by mark, use regular Kansas acknowledgment. STATE OF· } , • · --------------ss. ACK!\OV.'LEDG~IEXT FOR J:\'DIYIDl."AL !Kans. Okla. and Colo.J cou'NTY o~ ... Before me, the undersigned, a :\otary Public, within and for said County and State. en this----------- day of _________________ , J9 __ , personally appeare"------------------- '""-------------------------------------------------- to me personally known to be the ider.::cal person-who executed the within and foregoing i~nrument and acknowledged to me tha executed the same as ree and voluntary act anri deed for the u.<es and purr0~e~ therein ~et forth. I!\ V."IT!>.'"ESS Vi.HEREOF, I ha>e hereunto set my hand and official seal the day and y~ar la~t ab'""'' written. My commission expir~-------·---------- Notary Public • , -aeceptio11 , __ I. .. ""42 laa... o.la. .. c.I&. £o). 244351 ,,.. OIL AND Page 431 "fr~.::~ THIS AGREEMENT, tn1end mi.o l.hll th"·-~1-S~t~h~-----'dar 01 January .. ....& Colorado IHt•tt~" _IuoLe~~T~·~·Llu!l~huaun_._,_, ~1~1_3LJ~P a lmer Aye nu e , G 1 enwo od Springs . C<J -231/-C... • ---------------------------------------------hettlll•lter called lel40!', 1.nd Wasatch Development Co., (a Colorado Corporation) henlnaner called !tu~. dDe1 1rttneu: 1. That lnMtr, for and Ln eon•ldtntlon of tbe aum o<--------------_-_T"-'eon,,___-----------------------"'U•u f __ l_0_._0_0 ___ ), in hand pa.Id, and of the c0Yenant1 1.nd ureemmt1 Mttlnlfter conhtned to be ~rtormed br tM lellff, has thl• d"J' traDted and le~ •nd herebJ rrant.i. Je&&H and ltU unto the Jeuee tor the puri>oJe or mln!n1 and o~r&tlnll for and prO'duclnt on and 1u. culnghe-.d ru and culnrhu.d 111ollne, J111n1 p1pe J111u, bulld!nr tanta, 1torl111 oil, bulldlnr J>O•er1, 1t11!on1, telephone Jinn and other 1truet11ru thoreon lo product, nu, t•kt t•fl of Mid nunuf•l.'f.ure au ol 1uch 1ub1tancet, and tor boutlnl' and boardlnr miploytt1, the tollow1nr dHcrlbtod tract of 11.nd ~->Gca=rcf=i"e"l=d~------------ ""'""'-~c~oul~o~r~a~d=o ________ ,to.wtt:.~S~e~e~=a~t~t~a~c~h~e~d~~d~e~s~c~r~1~· P~t=i~o~n~---------~ Township 6 South, Range 94 West of the 6th P.M. Sec. Sec. Sec~ s\?.c. Sec. 25: 26: 27: 34: 36: sEt, El;swt, wl;swt _, Nl;sEt, sl;NE~, sl;sw~, NEtswt, swtsEt Lot 7, .SEtSEt, except that portion of the SEtSEt lying Northwesterly of the County Highway as the same was on March 14, 1911, constructed over, through and across said 40 acre tract, said excepted portion con• taining about 15 acres; El;Wl;, Wl;El; Wl;El; I El;Wl; Township 7 South, Range 94 West of the 6th P.M. Sec. 1: Insofar only as said above described lands cover the oil and gas rights from the surface to a depth of two thousand (2,000) feet below the surface, and providing also· that the Juhan Ranch property has the first right to gas out of the presently drilled and existing gas wells for ranch use, including the right to pump water with gas. \ 1.ny to.lU, mortg•ges. or other Uen• oisttng, lnled, or MSHSed on or agaln•I the above described !Bnds and. In event !t nPr'elso such option. It shall be subrogl\ed to lhe rl~ht• of any holder or holderl th.reot and may rellnburu !t1elf by app!yJnir to the discho.rge of any auch mortgage, tu or other ]Jen, anr ro11Jly or rentaJa accruing hereunder. Ii. NotwJthstand!ng Bnflhlng !n this Jenie contained to the C<Jntrary, JI J1 Upressly agreed th.t If leuu •hall commence drilling OP'>l.llons •t any Ume while thl& Jeue 11 !n force, thl1 leue shall remain Ill fore.e and !ts term &llBU continue so lollg as Jueh operation• are prosecuted and, !r producuon re1ult• therefrom. then u Jong u productloll conllnut1. 12. If l'"lthln the pr!mnry term or this le1..1e production ori the lea1ed preml1es shall cease from any cause. thl1 Jeue shall not terminate provided opera· tlons for the drll!lng or a well 1hall be commencO<I before or on the n•U ensuing rental paying date; or, provided lessee begins or rtsumes the poyment of rentals In the manner and amount heretnbefore provided. tt, Bfter the exp!ralloll of the primary term ot thl• ]ease. production on the leased premise• •hall ceue from Bl\)' cause. this lease •hall not lermll\&te provided leuee rernmes operations for dtllllng a "'ell within &IUJ IMJ dBys from such tcsutlon, 1.nd thl• lease 1hall rematn Jn lotu dur!ng the proseeulion of 1ucb operation& and, LI production results therefrom, theD B.'I loDr BS production C<Jntlnun. 13. Leuee may •t any Ume and from time to time surrender thU lust BS to an)' put or part1 of the leued premises bJ dellverinr or mamna: & releue thereof to the Jes.or. or by placing 1. release thoreof of record Ln the proper county. U. This lease and al\ It• terms. cond!tJons, and sllpulatlon1 1h&ll extend to &nd be binding on 1oll 1uccu1ora of said lusor or Jenee. I~. Thia lease 1hall not be terminated, In •hole or Jn part, nor ahall lessee be held Hable In d•magf!, for failure to C<Jmply •Ith \l>e exprt•• or lm• piled eovenanta hereol, H C<Jmpllance therewith u prevented by, or II 1ueh f&llure ls the result of, any Federal or St•te laws, execull'" ordeu, ruleJ. or regulailono, If, 1t the end of the prJma.ty term htr«>I. such term hit not beell exten<l.!d by produetlon or drlllln.g a• !n thl1 lea!t proTlded, •nd le.,.ee, bY rel.Ion of any of tbe &bovt recited cauau, 11 unable to drill 1. 5'ell on the Jeued preml&u for oll or JU. the primary term and the reni.l prov!olon btreof sh•ll be extended 111tomatlcally ltom year to year until the flrlt t.nllhersary hereof occurring ninety (~()) or more day1 lol!owln1 the removal ol •uch del1y1ng co.uae. During any perlOd that lustt Is 11nabl1> to prOdu'° .,nd/or mu:r.1t any pr11<1uct1 from tho 11a10<1 premlua by re.,aon or 1ny of the •llOYO recited ct.uses, tbll le&M! •h•ll rem&ln In full for« BDd tttect. 18. Lu1ee ls herebJ 11nn the right at lia option, Rt BllY ttme and from tllne In time, to pool or unmze all or any p&rt or puu of the 1tx>n dt· ~er~~ ~~;di:1 ~~11~~·~:~~·1~~~·ru\~.'.e~~e~nu1~~~oi.irurned::~ '!~~~! !:1r:~~1i =~~ ~J::: !i'!. ~nm~tfc:'~~ p~~;i~~~:e!~;, n:~n.1im~:M11 :i1tt~1 ~•01n e~~~~~ 111eb minimum by not more th&n tell •cro II ouch U«All II neees.ary In ol'11u to conform to o•Dttlhlp aubd!Tl1!0111 or lt&ae Unea. """"" 1hall nert!U a11.ld option, 1.1 to eBch dealred unit, by uecutlnt and reeordln1 Bl!. l!Htrument Identifying the untttsed are&. Any well drilled Of opent1on1 eondueted on any part of each 1ueh unit •hall be eon1tdered 1 "ell drilled or opu1tton.a eondue~ under tbla leue, ud tbeu &hall be allouted kl tht po"lo11 of the above de.er1bed l•lld l.nduded Ill •llY 111eb unit rueb proporUon of lb• aetua.I prod.udlon from all well& on 111c.h unit 11 leuor'J Lnterut, If •n1. Jn •u~n portion, compuled on an •c:rea.,,. buia, be•H to I.he tnUH 1.crure ol 111ch ult. And It II u..ndtrnood and t.Jntd lbat the production '° aU0010<! •hi be eon•ldered for all purpo1e1, lncludl~ the p•rmen1 or deUttFJ of toya.111, kl be lh• entire ProducUO!l trom I.he portion of I.ht &bon·deurJ!loed ltnd ID• cJllded ID rue.ti ullll l.n I.he aam1 ma.nnu u l.houJb produoed from l.hl.BboH· ducrtbed 11.nd !Ind.tr I.ht~ oJ U1.Ja J-. 1 .J \ .:\·, \j .. '-\I , "" I Fifteen (15) In &edlo~ -• To.,Mhlp , nanr~-------111d contalnlnr-.1, 4 7...5.....8._Q eru, more or 1eaa, 2. Thla Juu &hall remain In force for a tum 0(~1nrs and u tonr thereafter u OIL ru, c111n1hud cu, ca11h:i1hud 1uol!11e or NI)' of thera JI PfOduUd J. The lu•ee shall deUt'er lo the credit of the lessor u r<171lt7. frtt ot cost. In the pl~ line to which le:.se.. mar conned It.I 'll'ella the equal mie·elghth Pitt of all oll produced and .aved rrom the Jel\.Sed premises. or at \he luue'• opUon, nay pay lo the JeMOr for 1uch one·elrhtb ro7aJ\7 the market price lor oil ot IJta 1rade and rravltY prevalllnr oo thf d•7 111eh oil 11 run l.clto the pipe Une, or 11Ho ltor•re t1nk1. 4. The Jusu ohall pay lusor, u ro11.n7, ooe-eJrhth of tht pr~• Jro1:11 the aale of tbe ru. LI 1uch, tor gu from •ella •htre ru onty Ja found, and Where not sold ahall pa7 F'lfly fU0.00) Dollau per ann1.lm a• ro7alt7 from eaeh 1uch well, .ad •hJle 1uch ro1'lt7 11 so paid aueh well &hall be held to be a prod11clnlf well und•t puo.graph numbert<I two hereof. The _le..aor to hn·e gu free of charge from an7 ga1 well on the lea•t<I preml1U lot 1ton1 and 1n1Zde llght1 In the principal d•elllnlf houn on said larid b7 malling h1• own eonnect1on1 with the 1rell, the uu of n!d gu to be It the leMDr"1 sole rial< and U• penae. The l•U•e ahall Pl1 to leuor for ru prOducod from an7 oil weU and u1ed b7 the le»ee for the manufacture of ruo!Jne or 107 other product, I.I to7· 1!1)', one-eighth ot the market value or sue.ti p..1 at lhe mouth of lhe •ell. If uld ru i. &old b7 the Jeuee, then aa r011lt7 one-flgMh or the procnd1 of the ule Lhueof. S. Jr operltl<ma for the drllUn1 'or 1 ••II tor oil or 10 ue not commenced on nJd land on or before one 7ear trom thla date, thl• leue •hlU termhi&te U to both putlU, unlea.i the les1u ah&JI. on or before one 7ur trom th!• date, pay or lender to the Jeasor or for the Jeuor'a credit In the "-F~i~r,_s=t_,_N"a,_,t,_,i"o"n"-a=l ___________ _,,.0 )< 1 ,_G"'-'l"'e"n"w,_,0,,,0"-d,,_.,,S.,p"r'"'i"n"g"'s,,_.._, _,,C"o"l"'o"r,_,a"'d,..o"-----,. th aucceuou, •hkh bank and ua 1ucceuor1 are the Juaor•• arent llCld ahaU continue as the deJ>Oaltory of &117 and au 1um1 p1.11b!e under thl• lta.ae, r .. gudleu ot ehanae• nf ownenhlp In nld land or In the oll and gu, or in the rent•ill to accrue thereunder, the •urn oL• _.S"i"x~~H~Uun.d~r_e~d~--- F if ty Seven and 90/100------------------------J!ara !t 657, 90 ) •hlch shall operltf aa renl1l.1nd eonr the prlvl!ege of deferring the eommen°'ment ot drllllng opet.o.tloM for a. ~rlod of one fear. In like m•nnet and upon !Ille puments or tendera. the commencement of drllUng opeuUon• m1y be further deferr...:I for Ul<e perJod1 succeu!voly. All pa7ment1 or tend.rs ma7 be made by cheek or draft ot 1euee or any uslgnee thereof. malled or delivered on or before the renhl paylr>g date. Notwllh1tandlnr the d'ath of the le~or, or hl1 1ueeessot In lnlertn, the p17ment or tender Of rentals In the manner provided above shall be b!ndJng on the heJu. devlseu, executor•, and a.dmlnl1tra1ora of 1uch per•on. G. If 11 1n7 Ume prior lo the discovery of oil or gas on this land and during the lerm of thia lease. the leuee 1h1ll drill a dry hole. or hole•, on this land, tl>I• Ju ... ol>all not terminate. provided oporatlon• for the drllllnl of 1 well shall be commenced •!thin twelve month• from the e~ptratlon of the lut ren\aJ period for WhlCJ\ rental hu been paid. or provided that •Jtbln 11ld period lM le!5eo begins or resumes the payment of renul& Jn the manner and amount herein abon proYJded; and Jn thl• event the preceding pararraph1 hereof rovernlnr tl>e payment of reolala and the manner and effect thereof shall eontln11e Jn force. ?. tn ea1e uld !esaor owns a lesa lnlerul Jn the above deacrlbed land thin the entire and undl•!dcd lee 1Jmple utate thereJn, lhen the ro7aLUea &nd unlaJ1 heroin provided for •h•ll be p&ld the u1a lesaor on!7 Jn !he ptoJ>Or!lon •hl•h hi• interest bears to the "hole and undivided ftt. 8. The Jeuee 1hall hoe tl>e rlghl to uu free of C<J1t. ru. oJl and waler round on said land tor na operaUon• thereon. except water lrom the wells ot the feuor. Whrn re11u1red by !es•or. the Jenee 1h1U bury pipe ltne• b•low plow depth and ah•ll pay for damage eauud br 1t1 operat1on1 to rrowlng crops on 1Ald land. No ... n shall be drilled n,earer th•n 700 rttt to the houoe or barn now on old premhu w1thoul written COMenl of the lusor. Lenee aha!l have the tlRht at any lime during or alter the UPl(l\lon of lhla Jeau to nmove 11J maehlnlty, !Juurea, boU•~S. buUdlnll'I and other atrueturu Placed on a&Jd prem!au, 1nclud1ng the right to dra .. and remove au cULnr. g_ II the eatde ot ellhtr part7 hereto Js U•litled fand the prJ,llege of au!gn!nr In WhOle or In parl la e~preasl7 aUowedl, tht co•·enanta hereat 1hall " extend to the htira. encutora. admlnJ1tr1tou. succusoro and au11ms. but no cnange of ownership Jn the land or Jn the rentals or royalt!•a •hall bo binding · on the l•u•e untH atier notice to the lenet and JI ha& been turnnhed •!th the •rltten tran&ler or usJgnment or a certl!led cop7 thereot. In the event thla leue •hall be uslirned as to a part or as to p1rt1 o! the abon deS<:r!bed Jand1. and the holder or owner of any such part or parts •hall fall or ma~e dd,.ul~ ..,. Jn the ;iaymenl of th• proJ>Ortlonate tiart o! !la relit due Crom hJm or them. auch default ahall not operate to defeat or 1fleot this lease In so rar as Jt coven ~o~~r~a0:tJ~:r!~ 1rt1e~1tr, 1~~~t~~0~r "~~~~1~!. •:~:.~: ... ~!y0rw~t~bo~~t~~:~[:0/h!~e~1: ~:1~~. da"rid t>!~~J°~~I 0~a~~l:s r:~;J~~&te~t 1:t -~~fin~':'1~ l~•~:.~~d!~1em~i:1!tr~~ m~nl 10 be llled ~-lth the les.ee. a common areot to receive all pa7ment1 due hereunder. and to necute dlYl1lon and tranafer ordera on behalf of u!d PlfllO, and thelt rupectlve aueceuora in title. , 10. Lener her•bY ..-arrant• and arrees to defend the titH to the land herein dncrJbed and 11-reu that the leasee, at Jt1 Option, mai• pay and dlschAra-e an7 taus. mortgage•. or other liens exJsttnr. levied. or a.aseued on or aratn•I the above descrJbed lands and, ln event It eurc!aea auch Opllon. It ahall be aubror•tr-d to the rl~ht• of an7 holder or hoJdeu thn~f and mar relmbune ltaelt by appl7Jn1 to the dlacharge of 1n7 1ucb mortgage, tu or other Uen, any ro1a1Ly or rtn\ah accruJor hereunder. wh 11~ 1.lh~0l:~!~"1tsa~~1 ~!rc~~rt1~/.11 'f.e!~. t!i:~i]e~::.,;1~n t~Jnf~~c!0 a~~· 1f:nt~r::U1 ·U:!u1" e~~ri'~~!1 ~oa~~~~ !!1aatu!~ 1!t"."r"&:i~~~ ~~i~;~::c~i':J11~~d~P1•[·~:~d~c~~o~n~e!~TI~ thetelrom. then as long u production continues. 12. If a-fthJn the primar7 term of thh lei.!• production. ort the leasr-d premises shall cease tram an7 cau•e. thla leue ahall not terminate provided opera-~~0n11l~l;o~n t~~.d~~~ri'er0f.~d "."i::o~~~uh:;.~~~fo~~c~o~~J~~e rr. ~~t!~·u~:~;;1~!~I~: ~;ntt:~ ~~f~"a~/~!~;.. 0:1 f~1~'11~!~ •. 1·~~:iu~tfo~' o°.: ih:ur:::ed1 h~,:~r;;,en,~a~f ceue lrom an7 cau&e. this leue 1hall not terminal• pro,.ld•d Jesse• retumes operations for drUl!ng a weH Within 11xt7 (80! d1Ji trom •uth ce»atlon, and thll lease shall remaln In force durlng the prosecuuon 01 such operatlona and. If production result• thnefrorn. then &I Jong u production tontlnuea. ll. r.... ... ee may at any time and from ume to time aurrender thl1 lease u to 1n7 pa.rt or part• ot the lea•ed premJ1e1 b1 dellverlng or ma!Ung a releue thereof to lhe le&1Sor, or by placing a release thereof of record In lhe proper county, H. Thu Jeue and &JI Its terms. conditions. and s-tJpu!Ulona 1haU extend to and be blndlnl on 1U 1ucce11or1 of a&Jd lessor or leaaee. J!_ Thi! Jeue •hall not be terminated. In whole or In part, nor 1hall lessee be held llable In d•m•ru. for hllurt to comply •Lth the expres& Or Im· piled to~eoanta hereof. J! compliance there.,!lh !o prnrnted b7, or U sue.ti tauure JI the result o(, any Federal or State l1w1, nec11Uve order., rulu. or rr1ulatJon1. Jf. at the end of the primary term hereof. 1uch term hal not been utend.d b7 production or drlJJU'i " ln lhll Jeaae Provided, Mnd I•"-'• ~!r!~;·~.1~1 b:n;xt01n~~ :~~:~:,~~~~~ ~~~:U"y.1:r ut~a~~~/0u~[iVJ t~e ~~~11°!n~~:.:;::;"h~;:~;i:~u~~~n;1~1~~t:~,ti;.~ ~~~·z,:e~::lio~n~, t~~e ~~i,!~!,rro0f~~~~ de!1y1nr cause. D11rJnr 1n7 period that lraau la \lllabl& to produco and/or market a117 producu Jrom the lo1.11ed preml&al b7 reuon of 1n7 ol the •~n recited. uuses, thl3 Jea.w •hall remain ln full for~ and effect. u. Lei.lee ls hereby rhen the r11ht a.1 Ill option, 11 a117 time and rrom time to time. to t>OQI or unJtJze au ot any '"" or partl of the aboJe d~· acrlbed !and with other land. leue, or Jeuu In the llru!lodlat..a Ylclnll7 thertof, 1ucb P,Jollna: to be lnlO unit.a not ueee<!.lnr the minimum 11.w tract on •hlCh a. •ell m.0.7 be drllled under la•a. rulu. or rerul1Uo111 In force at the time ot 1uch 1><»lln1 ot unlllutlon: pto¥1ded, however, tb&t 111e.h unltthm1~1 uer1 ~ 1uch m1111murn b7 not more than ien acru II 1ue.ti exec ... u neceuary In order 1-o conform t.o o•net•hlp 1ubdl11&lo11ji or IHM llnu.. Lu1H 1 a nerc sald option. u 10 eae.h de1lred unll, b7 ·~ecuUnf and ~rdlnl an lnolru.rneDI JdentJty1n1 the unltJ.Hd area. An7 well drWcd ot opent1on1 c.induet1 i~~ 1n7 put af eae.h •Uch unJt ah&ll be con.Jdered 1 well drilled or operaUoru conduct.Mo wider thu zea.u, 111d there I.hill be &Uoc:atecl to th• portJon o • above dualbtd land Included Ill 1n7 1ucb unit 1ucb ProJ>Ottlon of lht 1c-tu&J production from all •ells on •ucb unll ., lt9IC!r'1 1nt1rut, JI 1~n7, t: 1~ ?i :rt~:~1dC:r':J'u:~ ~~ ~~~::."iii'd~~ina: beti;! ~17~~ni'~~ d:ti~~~· o~t ro~~U~~ be~. 1 ~~1re uop~~:?on~~,i::~e;1 r!t;:1~:h:t Pa:'~:~. d~t~1:ri 1111; ~- eluded 1n 111eb unit In th 1&.1111 manner && lho12ah produQW fro111 th• .•bo'lt· d-10ed l&n.d. u.dv \h4' l4:11n-11 of \blt le.LN. J J . ·I >k 404 Page 433 } ss. ACKNO"'LEDGME~T} ~•< IXDIVIDt' AL \Kan><. Okla. a.id roJo.) cOUXTY OF JEFFERSON STATE OF_~C~O~L~O~RAD=~O __ Befort' me. the undcrsil'!'ned, a Xotary Public, within and for said County and State. on thi~_-CllLL _____ _ day of_~A=u~a1c.~·~s~t~----------• 18__QQ_, personally .appeared Joe T • Juhan ---------------------------··------ to me per.:'onally known to be the identical perso~who executed the within and foregoing instr:Jml'tl'. :1·~~·! ::'' :"n•;::. d::t'd tom" tha he executed the same as his free and voluntary act and deed for the uses ~?'l 1i~•;.;~·."r·•."-~::•:!'·_.::i ~e: furth. ).fv eommi~sion expires /,2 'c:? f, cf ff -. a/u,C/i_,, 't/_,_:./:;Z::.f._,'/::.·~---I::\ '\\'ITNESS '\\'HEREOF, I have hereunto set my hand and o!!"ic~"al pl h<' day an~ 7:ea~ ~/'~C'.'.~,(,·>e ·1·.'.";::-m. . ·-_ _!__~;Jr;l:_r~: l'_ublic STATE OF--------------i ss, ACKNOWLEDGMENT FOR IXDIVIDUAL (Kan~. Okla. and Colo.) COUNTY or ____________ J Before me, the undersigned, a Notary Public, within and for said County and State, on this __________ _ day of------------------• 19____, persona!ly appeare~---------------~--~ •n"----------~--------------------~------------------- to me personally known to be the identical person._ who executed the within and foregoing instrument and acknowledged to me. tha executed the same as ree and voluntary act and deed for the uses and purposes therein set forth, IN ~'IT~ESS WHEREOF, I have hereunto set my hand and official seal the day and year last ab<:-'·~ written. Mr commission expires'-----------------· z,;otars Public STATE OF-------------} "· COUNTY OF-----------~ ACKNOWLEDG!tlENT FOR CORPORATION" Be it remembered that on this ____ day of ______________ ,i9 __ , before me, the undersigned, a Notary Public, duly commissioned, in a:nd for the county and state aforesaid, came•------------------ ----president of-------------------------------- a corporation of the State of , personally known to me to be such officer, and to be the same person who executed as such officer the foregoing instrument of writing in behalf of sai<l corporation, and he duly ac- knowledged the execution of the same for himself and for -said corporation for the uses and purposes therein set forth. IN WITNESS \VHEREOF, I have hereunto set my hand and official seal on the day and year l.ast above written. :My commission expires ________________ _ L.U "' jj ....J "' 0 a z <( ....J c Notary Public ' \.~ . ' '' <• ·NOTE: V...'hen signature by mark in Kansas, said mark to be witnessed by at lea.it one person and also acknowledged. ,:, ' For aekMwledgment by mark, use regular Kansas acknowledgment. STATE OF } . - -------------sa. ACKNOWLEDGMENT FOR INDIVIDUAL (Kans. Ok!a. an<l Colo.) COUNTY OF Before me, the undersigned, a Notary Public, within and for said County and State, on this __________ _ dayo·'-----------------~ 19--. personally, appeare~------------------- ·"~------------------------------------------~ to rr.e personally known to be the identical perso~who executed the within and foregoing instrument and acknow!l!dg-~<l to ~~e tha executed the same as rre and voluntary :i.ct anrl deed for thl' u:<es :ind purpo,:1•,: ther<'i~. s('t i·nth. IN WIT!{ESS WHEREOF, I have hereunto set my hand and off[('ial seal th(' d:1y and y1•:i.r b~t :tlll>\"1' writt1•n. Mr commission expires, ________________ _ Xotar)' Pub!:c ~,.... l'--i sa a.... s.. u. a. F<>TID 1os-w;--\1"'6f.9i06; CttaS S .. : Keegan, RA~crrder · O Reception w , _ ' _, , _ y ,' '-v 1'00K ,G/j/j · Page. 505 014. ;AS AND MINERAL t _ _,SE nilS AG!iln<&NT ..... u.i. 2 oth 'q R. P. LUXEN and MAY LUXEN, his wife Leuor ,~ at!Cb1' mo,..), ud -'801'Q"IwgEBLCJiJ:i.•N£L;IlliJJLTuQ""N~G"A,S~,C"Q"'-'PcA~NY~--------------Leu .. (whrihu ,,,,., or more), -.. WITNESSETB THAT1 Section 25: Section 26: Section 35: Township 6 ·south, Range 94 West, 6th P;M. -· · w~swt; swtmT-*" SEt; s!NEt; stswt; NEfswt; SEiNWt less approx. 2.77 acres de- scribed as "Beginning at a ooint in the center of the County Road 801 1 W. of NE corner of SEf;NWf;, Sec. 26, T.6 S., R.94 W., thence s.51° 04' W. 702 1 , thence N. 442', thence E. 547' to the place of beginning"; . . Portion of NEiNWi containing approx. 2.77 acres describea as 4 4 d 80 ' ·-"Begirming at a point :.n the center of the County Roa l "· of the NE corn~r of the SE~NWt Sec. 26, T.6 S., R.94 W., thence N.51° 041 E. 572 1 , thence S.30° 10 1 E. 443 1 , thence W. 673' ~o the ulace of beginning 11 NWtrIBf;- ~~~-----·~-a 'xv-..reu OJ' ant ~a<ltbOriii!d so..,.~iaf--or-~-> WWWJ, ae GISWl@lld Oh bid iind, or IiiiQWffilwhleh it or &n7 part tha-eof ma;y be POOied, and whkh pa Ol' other tuhrlanee or s!;lbttanees cannot be profitably produ~ for lack of a. marbt at the well or welb, or for an7 othu came 11ot within thfl :reuonable control of 1-. Lea.ee ina7 ])1.7 IL eompene.atory royalty to the parties entitled to royalty under this leu.e from the aho..,.e i&ud a oum eqnal to the amonnt of thfl annn.al nntl..ll p&Jable In lieu of drilline opent.llons {1uch p&fmeut to be made on or before the da.te that ouch delaY renlll.4 &re due, or au aw.....:i11ent 7e&r!,. anninru.ry th~ter whether or 1>ot within lhe prim&ry term, and in the manner. time, &lid place pr.,.,ided below for the p1.f1Dent of de!&,. reat&ll, and while &11ch ronJty ill ao pa.Id this le&&e oh&U be eonoldered u producin1r in pafinr Quautitios ouch of the above mentioned ~u or other 1ubotanee or 1ubotancea u the wtil or wello are capable of prodncing; however, that where aneh well or wel!A have heen ohut in tor lack of ma'rket or for an7 other caUH uot reaaonab!,. within the control of ~~.~.;t~~~h •.:eir;: ~e~~.~!o~~" ...::=~r~~10: ~~ ~f~~~h (~;fd".n;. i!':!'!.li:~~e ;rio~h::;e .:~ '.°u7~t~":n'l!;::.;'~t!r:..1d"'::J'"'1:eU"o~er...,';'j: ~:_;':,,~~~~t ;: :h!J1la~!v:~~~eti,!r ~~id:~t~~t""J:: an~v!";J:.-)j7 o~~~er~ ~:~ID;t p=~ i~ ·~~.,~~1:ut~Z7umiir fo~r ~-~m~o!'I=~ ouch e.nnivenaq date. Such paymeut or tender may be made jointl7 to the c<edit of an7 adnrse elaiinanb of the ...,,,e roy,.}fy inier-t. n7 panzienta inade u royalt7 on .,,eh a oh11t-ln well or wells ma7 be c<edited against an7 roya.ltiee which may become due on oil, gu, or other minerala p need !n>m the land covered hereby, or Jand with which it or any part thereof maY be pooled therewith, during any portion of the 101.r tor which ouch p&J'ment for a. 1hnt well or wel!A is made; (~/on all other minerala mined and marketed, one-tenth (1/10) eitbu in kind or valne at the we!! or mine at i.e... ... ·, election, o:i:cept that on aulphur the ro7alty sh&ll be one dollar \SI) per Jong ton. Each ro1alt7 hen!iu provided in a.JI IDotaoc"" oh.all bear~ production. oeverance o.nd other direct tax or tax"" applicable thereto. Le.see oball have tree UH of oil, gu, other minerala, wood and/or water from uid land, except wa.t.er from LC880r'• weU(a), tor 111 opioratlon1 berennder, including but not limited to, oil, ra1 and/or other minerala used fDl' tnel, oil. ru, and/or other minent.4 returned to formation for represo=int:", presoure maintenance, cycling a.nd/or other oecondl.l')' recove.ry oper&t!un1, and the royalty on oil, zu, and/or other mlnera!o ahall be computed a.lter dednctinr any &<> u&ed.. I') l.esaee, at its option, la hereb7 ciVl'D the rla"ht and powior to pOo\ e>r combine the 1ere.o.ge eovered by this leue, or any portion thert'Qf, with other land, lease or leas"" In the immediate vicinity thereof, when, in L!!Mee'1 iudJflllent it lo neces.ul'J' or adviAab!a to do "" in ordu properl,r to develop and operate a.aid premlaos in compliance with &DJ lawful 1pacinr rul"" or orders which ilta7 be prescribed by a.DY duly anthorhed authorify, for the field(•) in ..-bieb thia leue aereage or l.ll7 part thereof ill aitw.ted, or when to do so wonld, In the judJflllent ot Lea.see, promote the coiuerva.t.ion or economical prodnction of the oil, iru, and/or other minuah from uld preml&ee, auch POOliur to be Into a nnit or ll!:lltl not uceedlng the number of •er .. reqnired or recommended by the atate regulato:ry authority having juriadiction over well •pacinr, drilling unit.I, and other mattel'a relatlnir to the production of oil, ru, and utha minenla. To accornpllllh aneh POOiing, Lea.ee ob.all ""eeute In wrltinr and file for record in the proper count7 •u m.trument id..,,tifrinir and deecribinir the pooled acreare.. 'I'bl enlir9 acreage so poa]ed Into a tract or unit ab.all be tre&ted for all PUJ'pOSes, except for the p&J'D>ent nf royalties on prodnetie>n from lhe p0oied unit, u lt it were included in thla J.....,e, and lt production ill h.ad from any portiou o! the pooled acreage, it ob.&11 be treated u produetlou from the laud covered by thill leue. whether the well or wella be located on the land coviored by thia lease or not. In lieu ot the royaltiea e!Aewhere herein opedtied, Lesaor oh.all receive OD production from a unit ao POOied such portion of tbe royalcy stipulated hemn u the amount of hia acreo.ge placed In tbe unit or his ro:ra.lt7 intere!t therein on an acreage buis bears to the total aereare so pooled in the particular unit inve>h-ed. (6) I! operationo for drillinr are not commenced on •aid land, or on other land POOied with u!d land, or any pa.rt thereof, on or Wore one year from this date, the leu.e ohall then tenninate u to both parties, unless on or before e11eh aunive,..•'7 date l'..es..ee shall pa7 or tender to Le&&or or to the credit of Lessor io .Ban.k__of. tm.,,rjc,;.I t.~_a].s__Gar.:f' ":;r~nch Bank at .1.nt;~~_,. _ ___C_alif.ornie (which bank and its auecesgors are Lessor'• agent and •hal continue u the depooito.ry for a!! rent&b pauble hereunder reirsrdlas of chanireo in own.,..bip ot Hid land or rentab nntll and unlesa Hid deposit<>ry bank ill chanired ae hereiualter provided) t'.i.Ye____Eund.re.d....S.ir~--Dollan (S _-5-6Q...QQ_ ... ), (herein <&lied "rental" or "rent.ah") wbicli •hall cover the priv1leire of de!uring lhe <e>mmence111ent of drilliDt: operat10D!I for a period of twelv• months. In like manner and 11p0n like payment. or tenders annually the commencement ot drilling opera.tiono may be further deterred for 1ucc....,iv• perioda ot twelve months ea.eh durinr the prim•TJ" term. Tbe payment or tender of rental may be made by the check or dnt.ft of Leae..., or anye>ne actinr on behalf e>f Lessee, mailed or delivered to said depooitory bank on or before 1uch date of P•fment. I! such bank (or any oucc.,...or bank) 1honld h.il, !iQuidate, or be oueceeded by an~ther .bank, or for any reuon f&il or refuse to accept rental or make proper etedlt therefor, Lesaee 1hall not be held in def.ult tor failnre to make 111ch P•J'D>•nt or tender of rental until thll't1 (30) daya after Lessor tball deliver to 1-ee a. proper recordable ln1tnnnent, d""irnulnr another bank •• a.gent to re<!eive ouch paymeolll or tende,... If •ueb bank charge!I or dedDcta a fee for act!nr u d"1>06itoq, 1neh charge shall be borH by L ... oor and 1ball not a.lf""Ct the validity of the lease. The cash payment described in pant.irraph l above ii con1ideratiou for this leue ae«irdinir to it:I ter11111 and 1ha.H not be a.llocaeed u mere r.ntal for a perind. Leeoee may at an7 time execute and deliver to Lessor or to the d"POl!olb:>ry abova named, or place of record. a rele&i11 or re]eu.., eoverinr a. portion or portions of the land covered hereby, and theroby 1 urrender thill leue u to n1ch portion or p0rt!o111 and be relieved of all oblint!otl! u to the acrean onrrendered, and thereafter, If within the Pri!nl.'7 term, the renta.11 p&J'•ble hen-under shall be red11eed in the proportion tha.t th<! acreap covered hereh7 1' reduced by 111.id rel....., or releuea. (6) I! a.t a.n7 tline or tim"I dnrinr the primary term ~ U..U.dons a well &1 a dr7 bole on ea.Id land or land pooled with 1ueh land, or any part ~reo!. ur ll produetion. haTinr once been obtained therefrom. 1hould ooue from &llJ' cauie, and ll In either cue thla 1-ill not otherwiH mah>t&ined, this 1-oh.all nevutbe!""' rema.fn In fo:roe It prodnetion or OJ>Uatlona for drillinr or reworkiug on oald land or land POOied with Reh land. ar .•nT part thereof. are comlllftloed or resnmed. or pa.:rment or tender of rent&ll Is commeneed or resumed, 011 or befor. th., rental Jlll.Yilllr data-next e<Uu1ug after the expln.t>oo..of ninet:J (tO) dayw from .tho ~of .aba.ndi;inment of the ...-el] u a d'7 hole or ceuation of production; proTlded, tha.t 110 re:itnlli or opera- ~~~-.:tt~~~~ thillprlo~~;~~t4 o~r:~terii>._~.it*~~·:~~~~#··~~~~ -. of 11rod11ct1on Oe=n "1lhln r>inet,. {t0) <Ia,.. prior fb 'or 1t·any tfme "attertbft exp~n oJ'\M'prlm.iy"biirtil' and'lhl.-·~ .,-. Ji.Of'·(llhrihe ~!"tahl~_; thki ....... ahall •~1-nma.in in force If production or operatintl! tor drUllng or nrworklng an commenced or naumed on ..W land or ......, poo-. with 9'>Ch land, or a117'pa.rt thei-eof, withlll"'tlinet7 CtOl dar1 after "'eh abandonmea.t or -Uoa of pro•h1ct>oa.. ·Upon the.~ ..... -u.. Jlrin:>uT-.tc'm .... at &DJ' U-or tbnd theradter wbla tht. leaM i.. not otherwiM maintained, tht. i.u.. o.hall remain In· tore. '° -loni' a U'1 ~ far UiUlU Dr t"e"Woridu an ~ <1111 llaJd hlld or laJHI JIOOkd with 1ucb land, or UJ'" put ther«if, with "°--t:lo• at. mo.., thu. 1lhl4tr: (ff) ~tff-i dQ'a. and, U the,-re.ult· in JIT<>dgetioti of oil, 111'&1 ..,. oth~ lllineral, .., lonr u oil, pa or other mbaraJ _ i..-.Pl"O<lne.ed. ~ .,,-,Mt S·"PQ'hlr _.., •· ·· ·. ·(7) ln. u.e ......... t • ..n ar .... u. Prootadn& on O'I' Pl Jn p.,.Jrir Q'<Wlt:lti<!ll ~ M li~ht m·.~·~ ~:~o~~'i!.t'Oi'&IL'.ii.wiot u dxed · ~ th. 1p&ci.,.. 1"0.1-prese:ribtd lo7 tU J'0..,.""'1DentrJ or resuialor7 a•thorUT ha~ Jun.dietlo>I OTV tbe-Allli· Jn -wbkb•d ,.,.a ... looued. .... ~.~in· tn.-t.Ji.·1-.ed J>Nm'-es. 1-~tit drlll 1ueh olbet -Ila a& IL .-aonabb' Jl ........ t.~ wo-.Jd drill.-.1.u-ta. .._Ill!:~•~--•:_c-·' .. ·-·· · -CB/.;.!:-•hall 11.a-. the ri~M •l •"! tim<! -;,Wtnl' °"within a ..-.Oiiabla .tluie'anu th. ~tJOi[·Ql·w;Jie&ae-t.;""~:t.lf._~ -. . _a.114.~ plaaod by on II.Id land, btdgdjlll" the nrht to araw a.nd ttmo..,.a all eulnr, ~"bltlir, and other ~ .-;i~t. WlWli-~_._~ ~· 1-will ~ .:=.!~ btlow °rdln.uJ: plo...-dep~ a:id IMl.!-11 •b.all be drilled withl-D. t1f!) 1!1111~ feet ol &JU" µddene.,~·~-~ ~ .. ~~~~~-~~~ ·:·-..----· 'or The rlttbt. of'eiibe part)< i..reu"u.;.. 1111.J' 1.e-.:...lruod In whole or ln pa.rt, and the prmitlotl! baeof ~hall utwDl! ta~~~ ud ... {po) D..t nQ e~a or d1rlalon in ownnlllp al the land, rentall 0~ royalties, bow...-er M:OOlllJlliahod. .11hall (lpl!r&te to ~·U..·ohllp,tltlaii OI' d1m1niab lOO t'li-ht.- of t.-,-and ao cha~ or,<lhiriou In rnclii m.erahlp ah&Il be. blndlu on t... un.tO forQ--ftn" (U} dan llfter 1-illtaD."bl't"Eieell ~ b resb\ered Unlt.d SQ.tel inail at 1-I Jlllnc4iaJ. lllaee of 1im1n .. with • ~ CQPJ: of recorded fnab'Wlmlt OI' lnot.rumeuta ~ ...-, ~ as,-ln~i:. !';:!~ ~ -~=:,11ta. 111 lb"tt, evnit ol ~t loereot In whole or In J>&rt, Uabiltq fcir brach of •D.1 aOllptionJ i-.u.ndei' AaD Nn _u~ QOD tM ieder nieh l'Gltak in ti.·~ ~ ~!'? eonun.lto Reil brach. In the nent of U.. 4-tll al ill:J' Jlftl.O'll .ntltled t.o reniab: ~; 1-... .Z ~ . tQ nideu f th.a laW"fGl narlnp ._,ye to U.. ere.lit ot the deeeu.i or the eaute af tli. 4-..d a.ntU ouch time aa I.-~!:::' _ i!:s. 1rith ___ ,-~--.:iI.11e111 .. ;:f~ to It u ~~ t;::.t and Qu.liflcatton of an cecal.or or a<lminbtrator of U.. .Ute. or It theni be nona,· etil ·'!~a.le ~ _ =du 1-w Dl' tag,d or~ of the deceued. U at aDJ' time two or _,.. ~ bt etitttled to partldpm"--tzr, tile ;.a.., "'""~ l>Ortio°nate pt.nm:: :::U of ..Jda ~ raitaJ ~tb to aueh PllSOD! or to th.!r Joint cndtt In tha depotlto.ry na.med berein: or, d 1-ae'I ~,:H-~ rat.)J' or tQ their ~ to which a111 particlpant or puticlpanU Jna7 be t1ntltled, mq bt pa1d or tendered. to neb ppJ'tidpct' t<.,..... be •• ~ =tled. to part(d at.t !~ta tal In .. Id d~to17, and tb• balance of I.be rental, U 1.:17, 1111.J' be paid or tendered jaintJ7 to ilid:l·l)tber~ ·~da' •bell ma.latah:i th~ 1-u to rt.nc:h ;,:'dthetr .fo!nt credit in .. !d d"POll!tory; and ptJD>ent or tender to 1117 p&rtldpant oL hll. portion ~.!!'6' .. [ftl~d ihall ;,-. H ai>J>Ordol>ll.ble n h.t th...,_ P&nta. In U.. '"~nt of aait:"nment <d tbb l.eaa4' u to a lql"lpt.ed portioi:i of thir land, l'Dl&ls .....--tJM,IJI' JiPbl · .. "'j'.-~, of othu Je&q,boJd • .....;:j,~d~ J,~Jd o...,,era ratably accordin11r to tbe •urfaoo area of each, a.lid de!an.lt In n:11tal by -•ball notol af~l N.d...-tio DP<9d and ope:ratad u ..,..,.. lea.ae er. • *" Pl"enli1• •hall hereafter be owned in HYenlt.Y or lo MJl&J'l,te tra.cto, tha p~ a...nh - In tli• ~rtio.n that the 1 •nd a.ll ro71.Jtla aO<!r'tli,,. heretiuder oh.all boo trMted u an •ntlrfiJ' and ahall be divided UDOnr an4·"1d IRl4h ~own.,... C~• owned by each aneh Mpa.r&t<o ownior bean to U,. enUN lo.ue<i ~ , , , · ' ' · ;i · revenlo~1:) tla'l'h4_.!~!.1?__.Lesu.h .~~f &nJ' oblil'atlon uloina' hereunder shall not work a forf•ltntt or tttmhu.tlon of thk leue, nor •-IL ~naUon~ ...., ..-.....-, nor be rroun<la fOI' cancellation hereof Jn who!d or In part. Jn lhd evnt Leuor co11.1!de:rf that 1-b&I """ rol!U' ""=- \ ~,...._ ,..,..~ u Rn.·s. u. ca. F......._ 1os.-wr"1~n-i"06~ ·c-ttas:. _ s .. ~. Kee-gan ,3P:C~_rder --0 Reception N 1~~c _ : ,, __ , _: -· =--=.-C ~ ..GAS AND., MINERAL ~-;\.SE -I v JIOOK .c:'()O.=--.t Page 505-- .- THIS AG~nn -o. this __ 20th _____ "" __ S_ep~t_em_be~r _______________ , a.55.--. t...t .. een R. P, LUXE:r{ and YAY LUXEN, bis vife, -r j D - -CO -2:':? Tf-'f-' Les.. ("h.eth~ ou or mon), (15) It is mutually understood and agreed by all parties that the Lessee agrees to commen<::e tt.e d:r!..llini; of a we~l on tr..e Southwest One-Quarter {3Wi-) of Section 26, 'Township 6 South, R;_nge 94 Pest, within one year from the date of this leese, or fa.:i.Jing to do so Lessee Will execute and deliver to Lessor a p:roper form o!' release relinquishi~g this lease. IN WI'!':N'ESS \..':::E...~OF: this instrument is executed on the da-::.e fi:rst above writte:c. ,., .... ,-~- JOINT ACKNOWLEDGMENT {TEX..!SJ 'I'BE STATE 01' } County ot~~~~~~~~~~~~- Before me, the undenilrtled anthority, on thil day penon&lly appeared and hill wife, kno'IVTI to me to be the pel'SOlU wb~ names are subscribed to the fol"e¥(llng instrni:nent, and acknowledged to me that tbt-y a"1lted the aa"!e tor the purpooea and consideution therein aprased: and the llfore&a!d wile having-been examlnl!'d by me privily and.apart lf?m her Hid h1111b.lind, and hanng-tbe o.ame.tnlly e>;pla!ned to her, ackn,,,..,.]edged ouch Instrument to be ber a.ct aud deed and declared that ahe bad willingly aurned the llAllle for tlle P~ and t:0n1ideo-11.- tion therein ..rpresi;ed and that abe dld not WU.b to retract it. Given nnder mY hand and 1eal nt office this the GJ "' 0 .!l . ,· I, ' :~·1· ~ '. ; ,,.= "' I ·" day of Ncrt&ry PubUe In and for )i'i ~ ' . ' g ", · . j ,, ( p i ~ ~ ,A.D.19 Connty, • .+ -....... .,-.. . .... ~ ~-- _'..'.:.-~; ·~ ',_ ; ~-.. I . I. a .l 4 · · AA$CU .;tJ %4! his wife L>&OR. STATE OF:n~---:! COUNTIOF ,.E!:. ___ a ._ _ ACKNOWLEDGMENT _ , , ..... ..,.,,--~-· " - :. ~-· . ~· --·to me_..l:no:U to be tbe penou(•) deicribed in &1>.d who Uec'llted the fo~olnir inztrume:at, and aclcnowl~ " -ted tbe R!ll<! u ~ free ad: and deed. -,-._ ~ beuanto aet D1J' b&nd and 0111.cW ual on the do· and 7ea.r In thll eertltiute Mt abaft "'11ttan.. . . --,... ~ c:. ·-:s ,,,_.e. Notary Publlc ho &1>.d fw . " . . -:-··.;;,/;'-· Tl1E STATE OP' } Countr O•L------------ eae.o ... Couut.Y.~ JOINT ACKNOWLEDGMENT (T&L\S) Before rne, the 'l111deni.¥Ued authorlt,-, on thb da7 pen;o1u.lb" zppeared known to me to be the personz whoee nl.mez are 1nh•eribed to tbe forq"Q!nlr tn~~!.~n~~d aelro~wlednd to ti>.• that ther e:o:ecnted-tl:ie ......,., for the p!IrJ>08S and eo?Ltlduation thueln npreo.aed; and the afor$a!d wife h.&vin.w been e:i:an:iioed by me privl!,-and apart from bet n!d bn.oband. and having the aame fnil7 uplaln&d to her, ad::uowledi"ed nob innro:mmt to be her a.ct and deed and de~ that she h&d williqlr 1i1r1>ed the aame for the l>~ and MD.el~· tiou therein e:xpr .... ed and that 1he did not ..-Uh to l'rlr'act it. Given ondu D1J' baud and 1-.l of otlice thiA the ··<-:..• . Gl "' Cl ~- .L·JI . ...-. ··:....i· .. ~.:. ~I I~ -· _o i .; i i ·-1--.--l- ! ~J:~. • I_. ·1 ··..:..i·: ' . ,,j· ,J ·:·~.A I I ! da7 of ,A.D.19 Not&rr Public In and for -~X .• I~ ) /3 nz ,,1;1, f.,~ r,;,,_,l ,,,.;,~ ,;>~ t/a~tf / (;_,,../; ( ,J.u.~.~0~/ (,. (J:~~/ .. ~,e~\tEO A\.P'~1 . ;A~R \ :5 \988 j ~ j;(/;.~ ~/£{fl. 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L~az -~ . .J/ M t.v-_ .J.0) te..d-r