HomeMy WebLinkAbout1.16 Mineral Leases•m11r1111r•n1•11111••• 1•1 •11 ··-.. -·····-·· Reception~: 783941 .
03/30/2010 02,42,0s Pl'ID JeaFn ~6b~0·~~RF!ELD COUNTY co 1 of 2 Rec Fee,$11.00 oe ee. ·
ProduceIS 88 -PAID UP
Revised
PAID-UP OIL AND GAS LEASE
AGREEMENT, Made and entered into the __ ._S_th __ day of _____ F_e_b_rn_a_ry~-----, 201 _0_ , by and between
Gregorio Delgado
P.O. Box 207, Silt, CO 81652
--~A~n=t~e~r~o~R~eso~u=rces~~P~lc=ea=n~ce~C~o~rpo~ra=ti=o=n___ whose address is
whose address is
, hereinafter called Lessor (whether one or more) and
1625 17"' Street, Suite 300, Denver, CO 80202
hereinafter called Lilssee:
WITNESSEfH, That the lessor, fur and in consideration of TEN AND MORE DOLLARS ($10.00+) cash in hand paid, the receipt of which is hereby
acknowledged, and the covenants and agreements hereinafter contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter descn"bed, with the exclusive right for the pwposc of drtlling, mining, exploring by geophysical and other
methods, and operating for and producing therefiom oil and all gas of whatsoever nature or kind, specifically including coalbed methane and any and all substances
produced in association therewith from coal-bearing formations, with rights of way and easements for roads, laying pipe lines, and erection of structures thereon to
produce, save and take care of said products, all that certain uact of land situated in the County of Garfield State of Colorado, described as fullows, to-wit:
Township 6 South. Range 92 West of the 6thP.M.
Sections 9 &10:
Lot3
Scott Subdivision Exemption
According to the plat recorded 11/07/2000 under Reception No. 566041
together with any reversionary rights therein, and together with all strips or parcels of land, (not, however, to be conslnled to include parcels comprising a regular 40-
acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above descnbed land and owned or claimed by Lessor, and
containing 3.3!!856 acres, more or less.
I. It is agreed that this lease shall remain in force for a term of five (5) years and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If; at the expiration of the primary
tenn of this lease, oil or gas is llol being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in furce so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of
one well and the beginning of operations for the drilling of a subsequent well. If after discoveiy of oil or gas on said land or on acreage pooled therewith, the
production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
\........._., operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a
result of such operations at or after the expiration of the primary term of this lease, this lease shall continue in futt:e so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, fur the pmpose of developing coalbed gas, the
word "operations" shall mean, in addition to those matters covered in the preceding paragraph. (I) operations of said wells to remove water or other substances from
the coalbed, or to dispose: of such water or other substances, even though such operations do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for surface or underground mining affecting the drillsite or wellbore.
2. This is a PAJD.UP LEASE. In consideration of the down cash payment, Lessor agrees that I.Amee shall not be obligated, except as otherwise provided
herein, to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing fur record a release or releases, and be relieved of all obligation
thereafter accruing as to the acreage surrendered.
3. In consideration of the premisos the said Lessee covenants and agrees:
!st To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal eighteen percent
(18%) part ofall oil produced and saved from the leased pn:mises.
2nd To pay Lessor on gas and casinghead gas produced from said land (I) when sold by Lessee, eighteen percent (18%) of the net proceeds
derived from such sale or (2) when used by Lessee off said land or in the manufilcture of gasoline or otlicr products, the market value, at the
mouth of the well, of eighteen percent (18%) of such gas and casinghead gas, Lessor's interest, in either case, to bear eighteen percent
(18%) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (18%) of the cost of gathering and transporting such gas and casinghead gas from the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas produced from any oil well and used off the premises or in the manulilcture of gasoline or any other product, a royalty of
eighteen percent (18°/o) of the proceeds, at the mouth of the well, payable monthly at the prevailing market rate.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre retained hereunder, such payment or tender to be made on or before the anniversaiy date of this lease next ensuing after the expiration of 90 days from the
date such well is shut in and then:after on or before the anniversuy date of this lease during the period such well is shut in. If such payment or tender is made, it will
be considered that gas is being produced within the meaning of this lease.
5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties (including any
shut-in gas royalty) herein provided for shall be paid the Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee.
6. Lilssee shall have the right to use, free of cost, gas, oil and water produced on said land for Lessee's operation thereon.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth.
8. No well shall be drilled nearer than 200 feet to the house or barn now on said premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shall have the right at any time to remove all machineiy and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee bas been furnished with notice, consisting of certified copies of all recorded instruments or documents and other
information necessary to establish a ~lete chain of record title from Lessor, and then only with respect to payments thereafter made. No other kind of notice,
whether actual or constructive, shall be binding on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without reganl to any such division. If all or any
part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
12. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to
all or any put of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for lhe production of oil and gas, or separately for the production of either, when in
Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to Ibis exists with respect to such other land, lease or leases.
Likewise, units previously fanned to include formations not producing oil or gas, may be refonned to exclude such non-producing fonnations. The fanning or
refonning of any unit shall be accomplished by Lessee executing and filing of record a declar.ltion of such unitization or reformation, which declar.ltion shall
describe the umt. Any unit may include land upon which a well bas theretofore been completed or upon which operations for driiliug have theretofore been
commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be
treated as if it were production, drilling or reworking operations or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive on production ftom the unit so pooled royalties only on the portion ofsucb production allocated to this
lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bears to the
\........._., total number of surface acres in such unil In addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the above described
lands as to one or more of the fonnations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation
approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event,
the terms, conditions and provisions of this lease shall be deemed modified to confonn to the terms, conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all dnliing and development requirements of this lease, express or implied, shall be satisfied by compliance with
the drilling and development requirements of such plan or agreement, and this lease shall not terminate or exJ:>ilc during the life of such plan or agreement. In the
event that said above descnbed lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
the production therefrom is allocated to different portions of the land coveRXI by said plan, then the production allocated to any particular tract of land shall, for the
_.,, ... -· _ ... -··· 11•1•11 •• 111• 11111• •••• , ••• •• ••111. •I Ill
r Reception#: 783910
,;. 03/29/2010 04: 10:24 PM Jean Alberico
1 of 2 Rec Fee,$11.00 Doc Fee,0.00 GARFIELD COUNTY CO
Producers 88 -PAID UP
Revised
PAID-UP OIL AND GAS LEASE
AGREEMENT, Made and entered into the 15th day of ____ __;F;...e""b'"'r'"'u=a=ry,,_ ____ _ , 201 _O__ , by and between
Gregorio Delgado, a single man
P.O. Box 207, Silt, CO 81652
Antero Reiources Piceance Corporation whose address is
hereinafter called Lessee:
whose address is
, hen:inafter called Lessor (whether one or more) and
1625 17,. Street, Suite 300, Denver, CO 80202
WITNESSETII, That the Lessor, for and in consideration of TEN AND MORE DOLLARS ($1 O.oo+) cash in hand paid, the receipt of which is h<=by
acknowledged, and the covenants and agreements hereinafter contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter described, with the eotclusive right ror the pwpose of drilling, mining, aploring by geophysical and other
methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, speci(ically including coalbed methane and any and all substances
produced in association therewith from coal-bearing formations, with rights of way and easements for mads, laying pipe lines, and erection of structures thereon to
produce, save and take care of said products, all that certain tract oflaod situated in the County of Garfield State of Colorado, described as follows, to-wit:
Township 6 South Range 92 West of the 6" P M
Section 9: A parcel of land situated in Section 9, Township 6 South, Range 92 West of the 6"' P.M. being more particularly descnbcd as follows:
Beginning at a point whence the Northeast Comer of said Section 9 bam; N. 00'34'08" W. 1959. 91 feet; Thence S. 00'24 '38" E. 410. 74 feet to the center of
the Colorado River; Thence along said centerline N. 88"26'02" W. 555.48 feet; Thence departing said centerline N. 06"27'30" E. 412.00 feet; Thence S.
88'26'02" E. 506.17 feet to the point of beginning.
County of Garfield, State of Colorado
Also known as:
Lot 2, Sievers Amended Exemption Plat. according to the Map recorded January IS, 1997 as Reception No. 503455. County of Garfield, State of Colorado
together with any reversionwy rights therein, and together with all strips or parcels of land, (not, however, to be construed to include parcels comprising a regular 40-
acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above descnbed land and owned or claimed by Lessor, and
containing 5.00200 acres, more or less.
I. It is agreed that this lease shall remain in force for a term of five (5) years and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. Jf, at the <Ol.piration of the primwy
term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be ccnsidered to be continuously prosecuted if not more than ninety (90) days shall elapse between the ccltlpletion or abandonment of
'Re well and the beginning of operations for the drilling of a subsequent well. If after discoveiy of oil or gas on said land or on acreage pooled therewith, the
"Oduction thereof should cease from any cause after the primary term, this lease shall not tetminate if Lessee commences additional drilling or re-working
'"---'perations within ninety (90) days fiom date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a
result of such operations at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, for the purpose of developing coalbed gas. the
won! "operations" shall mean. in addition to those matters covered in the preceding paragraph. (I) operations of said wells to remove water or other substances from
the coal bed, or to dispose of such water or other substances, even though such operations do not result in the production of ¥.rocatbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production 1iotn said wells to allow fur surfuce or underground mining affilcting the drillsite or wcllbore.
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided
herein, to commence or continue any operations during the priltlal)' tenn. Lessee may at any time or limes during or after the priltlal)' term surrender this lease as to
all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for reconl a release or releases, and be relieved of all obligation
thereafter accruing as to the acreage surrendered.
3. In consideration of the premises the said Lessee covenants and agrees:
1st To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land. the equal eighteen percent
(189/e) part of all oil produced and saved from the leased premises.
2nd To pay Lessor on gas and casinghead gas produced fiom said land (I) when sold by Lessee, eighteen percent (189/e) of the net proceeds
derived 1iotn such sale or (2) when used b)! Lessee off said land or in the manuf.tcture of gasoline or other products, the market value, at the
mouth of the well, of eighteen percent (18%) of such gas and casinghead gas. Lessor's inteR:st, in either case, to bear eighteen eercent
(18•/o) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (1 S-/o) oflhc cost of gathering and transporting such gas and casinghead gas flom the mouth oflhe well to the point of sale or use.
3nl To pay Lessor for gas produced from any oil well and used off the premises or in the manufilcture of gasoline or any other product, a royalty of
eighteen percent (18%) of the proceeds, at the mouth of the we!~ payable monthly at the prevailing marl<:et rate.
4. Where gas fiom a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre retained hereunder, such payment or tender to be made on or before the aonivers:uy date of this lease next ensuing after the expiration of 90 days from the
date such well is shut in and thereafter on or before the anni~ date of this lease during the period such well is shut in. If such payment or tender is made, it will
be considered that gas is being produced within the meaning of this lease.
5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties (including any
shut-in gas royalty) herein rrovided for shall be paid the Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee.
6. Lessee shal have the right to use, free of ccst, gas. oil and water produced on said land for Lessee's operation thereon.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth.
8. No well shall be drilled nearer than 200 feet to the house or barn now on said premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shall have the right at any time lo remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all reconled instruments or documents and other
information neces5ary to establish a complete chain of reconl title from Lessor, and then only with respect to payments thereafter made. No other kind of notice,
whether actual or constructive, shall be binding on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall
operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regatd to any such division. If all or any
part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
12. Lessee, at its option, is hereby given the right and power at any time and ftom time to time as a recurring right, either befure or after production, as to
all or any part of the land descnbed herein and as to any one or more of the fonnations hereunder, to pool or unitiu the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in
Lessee's judgment it is necessaiy or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases.
Likewise, units previously formed to include formations not producing oil or gas, may be reformed to exclude such non-producing formations. The forming or
refonning of any unit shall be accoltlplished by Lessee executing and filing of reconl a declaration of such unitization or reformation, which declaration shall
describe the unit Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling hav~ theretofore been
commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includcs all or a part of this lease shall be
treated as if it wen: production, drilling or reworking operations or a well shut in for want of a market under this lease. In lieu of the royahies elsewhere herei.n
.._ified, including shut-in gas royahies, Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this
•se; such allocation shall be that proportion of the unit production that the total number of surfitce acres covered by this lease and included in the unit bea1S to the
\.. _,,.1tal number of surface acres in such unit. In addition to the foregoing. Lessee shall have the right to unitize, poo~ or combine all or any part of the above described
-iands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation
approved by a~ governmental authority and, ftom time to time, with like approva~ to modify, change or terminate any such plan or agreement and, in such event.
the terms, ccndttions and provisions of this lease shall be deemed modi lied to conform to the tenns, conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drilling and development toqulmnents of this lease, express or implied, shall be satisfied by compliance with
the drilling and devdopment toquirements of such plan or agreement. and this lease shall not terminate or expire during the life of such plan or agreement. In the
event that said above descnbed lands or any part then:of, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract ofhmd shall, for the
Producers 88 -PAID liP
Revised
PAID-UP OIL AND GAS LEASE
AOREEMENT, Mad.: and entered into the 27th day of November
Robert P. Gould
, 201 3 , by and het'M'len
"'nose address is
15600 County Road 306 Buena Vista, C.O. 81211
Ursa Piceance LLC \\i1 ose address is
, hereinafter called Lessor (\~hether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Les~:
WITNESSC.'TH, That the Lessor, for and in consideration ot TEN AND MORE OOLLARS (Sl0 .00") cash in hand paid, the receipt of which is herehy
acknowledged, and the covenants and agreements h.:reinatter contained, has gi:-anted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said L.:ssee, the land hereinafter described, with the exclusive right for the purpose of drilling, mining, exploring hy geophysical and other
methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, specifically including coalbed methane and any and all substances
produced in association therewith from coal-bearing formations, with rights of way and easements for roads, laying pipe lines, and erection of structures thereon to
produce, save and take care of said products, all that certain tract ofland situated in the County of Garfield State of Colorado, described as follows , to-wit :
Township 6 South. Range 92 West of the 6th P.M.
Section 9: Tr.tct in the NE/4 NE/4 and 1.-0t 7.
together with any reversionary rights therein , and together with all strips or parcels of land , (not, hO\..ever, to be construed to include parcels comprising a r"'b'Ular 40·
acre legal ;·ubdivision or lot of approximately corresponding size) adjoining or contiguous to the above described land and owned or claimed by Lessor, and
containing 11.4560 acres, more or less.
l . It is agreed that this lease shall remain in force for a lem1 of three (3) years and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operations arc continued as hereinafter provided. rt; at the expiration of the primary
term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse bet\wen the completion or abandonment of
one well and the beginning of operations for the drilling of a subsequent well . If after discovery of oil or gas on said land or on acreage pooled therewith, the
production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a
result of such operations at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lamls, or on the lands pooled therewith, for the purpose of developing coalbed gas, the
word "operations" shall mean, in addition to those matters covered in the preceding paragraph. (1) operations of said wells to remove water or other substances from
·the eoalbed, or to dispose of such water or other substances, even though such operations do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for surface or underground mining affecting the drillsite or wellbore.
2 . This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided
herein , to commence or continue any operations during the primary term. Lessee may at an y time or times during or after the primary term surrender this lease as to
all Of' any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation
thereafter accruing as to the acreage surrendered .
3. In consideration of the premises the said I .essee covenants and agrees :
1st To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal eighteen percent
(18°/o) part of all oil produced and saved from the leased premises.
2nd To pay Lessor on gas and casinghead gas produced from said land (I) when sold by Lessee, eighteen percent (18°/o) of the net proceeds
derived from such sale or (2) when used b_}'. Lessee off said land or in the manufacture of gasoline or other products, the market value, at the
mouth of the well, of eighteen percent (18°/o) of such gas and casinghead gas, Lessor 's interest, in either case, to bear eighteen percent
(18°/o) of the cost of compressing, dehydrating and otherwise treating such gas or casinghcad gas to render it marketable or usable and elghteim
percent (18°/o) of the cost of gathering and tmn~-porting such gas and casinghead gas from the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas produced fn~n any oil >M:IJ and used off the premises or in the manufacture of gasoline or any other product, a royalty of
eighteen percent (18°/o) of the proceeds, at the mouth of the well, payable monthly al the prevailing market rate.
4 . Where gas from a well capahle of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty om:iers One Dollar per year per
net acre retained hereunder, such payment or tender to be made on or hefore the annivers31)' date of this )o!Sse next ensuing after the expiration of90 days from the
date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in . lf such payment or tender is made, it will
he considered that gas is being produced within the meaning of this lease.
5 . If said Lessor om:is a less interest in the above described land than the entire and undivided foe simple estate therein, then the royalties (including any
shut-in gas royalty) herein provided for shall be paid the Lessor CM1ly in the proportion which Lessor 's interest bears to the whole and undivided f~.
6 . Lessee shall have the right to use, free of cost , gas, oil and water produced on said land for Lessee 's operation thereon .
7 . Wht:m requested by Lessor, Less..., shall bury l .essee's pipeline below plow depth .
&. No y;ell shall be drilled nearer than 200 ti.."Ct to the house or barn now on said premises ,.,,;thou! written cons<.'111 of Lessor .
9 . Lessee shall pay for damages cau""d by Lessee 's operations to growing crops on said land .
JO. Lessee shall have the right at any time tn remove all machinery and fixtures placed on said premises, including th.: right to draw and remove casing .
. 11. The rights of Lessor and Lessee h.:reunder may be assigned in whole or part. No change in ownership of Lessor's interest (by assignment or
otherwise) shall be binding on Lessee until I .essee has been furnished with notice, consisting of certified copies of all recorded instmments or documents and other
in formation necessary to establish a complete chain of rccord title from Lessor, and then only with r..spect to payments thereafter made. No other kind of notice,
"'hether actual or constructive, shall be binding on Lcsse.::. Nn prcwnt or fulur.: divi sion of Lcssor's 0\\11ership a; to different portion; ur parcels or s;,jJ lanJ sh ill
operate to enlarge the obligations or diminish the rights nf Lessee, and all Lessee's operations may be conducted without regard to any such division . If all or a1y
part of this lease is assigned, no leasehold o'Afler shall be liable for any act or omission of any other leasehold o'Afler .
12. Lessee, at its option, is hereby given the right and po'wr at any time and from time to time as a recurring right, either hefore or after production, as to
all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in
Lessee 's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land , lease or leas.~s.
Likewise, units previously formed to include formations not producing oil or gas , may be reformed to exclude such non-producing formations. '!be fonning or
reforming of any unit shall be accomplished hy l .essee eiwcuting and filing of record a declaration of such unitization or reformation, "'11ich declaration shall
describe the unit . Any unit may include land upon \\l1ich a well has theretofore been completed or upon which operations for drilling have theretofore been
commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall he
treated as if it were production, drilling or reworking operations or a well shut in for want of a market under this lease . In lieu of the royalties elsewhere hen:in
specified, including shut-in gas royalties, Lessor sh1tll receive on production from the unit so pool"d royalties only on thc portion of such production allocated to this
lease; such allocation shall be that proportion of the unit productit~1 that the total number of surface acres covered by tl1is lea~ and included in the unit bears to !he
total number of surface acres in such unit. In addition to the foregoing, Lessee shall have the right to uniti1.c, pool, or comhine all or any part of the above described
lands as to one Of' more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation
approved by any governmental authority and. !Tom time to time, \\'lth like approval, to modify, change or terminate any such plan or agreem.,nt and, in such even!,
the terms, conditions and provisions of this lease shall be deemed modified to conform to !hi! terms , conditions, and provisions of such approved cooperative or unit
plan of development Of' operation and, par1icularty, all drilling and development requirements of !his lease, express or implied, shall be satisfied by compliance with
the drilling and development requirements of such plan or agreement, and this lease shall not terminare or expire during the lifo of such plan or agreement. In !he
event that said above descrihed lands or any part thereoC shall hereaft.:r be operated under any such cooperative or unit plan of development or operation wher.::by
the production therefrom is allocated to diff.:rent portions of th\! land covered by said plan , then the production allocated to an y particular Imel of land shall, for rhe
Producers 88 -PAID L1'
Revised
PAID-UP OIL AND GAS LEASE
AGREEMENl', Made and "'1tcred into the 27th day of November
Arthur P. Gould
'201 3
---------------------------------------------------------
, by and betv.tien
whose address is
1502 E. 12th Street, Rifle, C.O. 81650
Ursa Plccance LLC V1i1osc addn:ss is
, hert:innfter called Lessor (whether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Lessee :
WITNESS ETH, TI1at the Lessor, for and in consid<!ration of TEN AND MORE DOLLARS ($10 .00 i) cash in hand paid, the receipt of which is h.:rehy
acknowledged, and the covenants and agreements hereinaft~r contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and kt
exclusively unto the said Lessee, the land hereinaft.:r described, with the exclusive right for the purpose of drilling, mining, exploring by geophysical and other
methods, and operating for and producing th~efrom oil and all gas of whatsoever nature or kind, specifically including coal bed methane and any and all substances
produced in association therewith from coal-bearing formations, "'ith rights of way and easements for roads, laying pipe lines, and erection of structures thereon to
produce, save and take care of said products, all that certain tract of land situated in the County of Garfield State of Colorado, described as follows , to-.... it:
Township 6 South. Range 92 West of the 61h P.M.
Section 9: Tract in the NE/4 NE/4 and Lot 7.
together with any reversionary rights therein, and together with all strips or parcels ofland, (not, ho~ver, to be construed to include parcels comprising a regular 40-
acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above described land and owned or claimed by Lessor, and
containing 11.4560 acres, more or less_ _
1 . It is agreed that this lease shall remain in force for a term of three (3) years and as long thereafler as oil or gas of Vli1atsoever naturt: or kind is
produced from said leased premises or on a~i:cage poolc<l thc;rewith, or drilling opcrutions ar" continu::d as hereinaft~ provided . If, at the expiration of the primary
tenn of this lease, oil or gas is not heing produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonmt::nt of
one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the
production thereof should cease from any cause after the primary -t.:rm, this lease shall not terminate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a
resull of such operations ·at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, for the purpose of developing coalbed gas, the
word "operations" shall mean, in addition to those matters covered in the preceding paragraph. (1) Op.lrations of said wells to remove water or other substances from
the coalbed, or to dispose of such water or other substances, even though such operations do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for surface oc underground miniog affecting the drillsite or wellbore.
2. This is a PAID-UP LEASE . In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided
herein, f<) commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation
thereafter accruing as to the acreage surrendered.
3. ln consideration of the premises rhe said Lessee covenants and agrees:
1st To deliver to the credit of Lessor. free of cost, in the pipe line to which I .essce may conn""! wells on said land, the equal eighteen percent
(18°/e) part of all oil produced and saved from the leased premises.
2nd To pay Lessor on gas and casinghead gas produced from said land (1) w11en sold by Lessee, eighteen percent (18%) of the net proceeds
derived from such sale or (2) ....tien used b_x Lessee off said land or in the manufacture of gasoline or olht:r products, the market value, at the
mouth of the well, of eighteen percent (18°/o) of such gas and casinghead gas, Lessor's interest, in either case, to bear eighteen percent
(18 °/e) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (18°/o) of the cost of gathering and trnnsporting such gas and casinghead gas fi-om the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas pr:oduced from any oil Viel! and used off the premises or in the manufacture of gasoline or any other product, a royalty of
eighteen percent (18 9/o) of the proceeds, at the mouth of the V1ell payable monthly at the prevailing market rate_
4 . Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre retained hereunder, such pa)'ment or tender to be mad" on or before the anniversary date of this lease next ensuing aftt:r the expiration of 90 days from the
date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in_ If such payment or tender is made, it will
be considered that gas is being produced within the meaning of this lease _
.5 . If said L:ssor owns a less interest in the above described land than the entire and undivided fee simple estate therein, th.:n the royalties (including any
shut-in gas royalty) herein provided for shall be paid the Lessor only in the proportion ....tiich Lessor's int..,rest hears to the ....tiole and undivided fee .
6 . Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for Lessee's operation thereon .
7 . Wh"'1 ruquestc:d by ~sor, i .essec sliali bury l.,.,ss"e ·s pipeliue he low piow d"pth_
8. No well shall he drilled nearer than 200 feet to the house or barn now on said premises without ,..,.-itten consent of Lessor .
9_ less"" shall pay for damages caused by l.ess.,.,•s operations to growing crops on said land.
IO _ Lessee shall have the right at any time to remove all machinery and fixtures placed o n said premises, including the right to draw artd remove casing.
11 . The rights of J .essor and Lessee hereund~r may be assigned in "'imle or part. No change in o"'nership of L:ssor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee has been fumished \\~th notice, consisting of c~ified copies of all recorded instruments or documents and other
information necessary to estahlish a complete chain of record title ti'om Lessor, and then only \\;th respect to payments th...-eafter made_ No other kind of notice,
V1i1ether actual or constructive, shall be binding on Lessee . No present or future division of l"'ssor's owni!rship as to dilforent ponions or parcels of said land shall
opi!rate to enlarge the obligations or diminish tht: rights of I .essee, and all Lesse;:'s op~'T"ations may be conducted Vlithout regard to any such division_ lf all or an)'
part of this lease is assigned, no leasehold owner shall be liable for any act or Oinission of any other leasehold O\\>Tl..:r.
12. Lessee, at its option, is hereby given the right and powa-at any time and from time to time as a recurring right , either before or after production, as to
all or any part of the land described herein and as to llllY one or more of the formations hereunder, to pool or unitize the li:asehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for th" production of oil and gas, or separately for the production of either, when in
l.essce's judgment it is necessary or advisable to do so, and irrespective of "'hether authority similar to this exists with respect to such other land, lease or leases.
Lik~"'ise, units previously formed to include formations not producing oil or gas, may be reforrned to exclude such non-producing formations. The forming or
refonning of any unit shall be accomplished by Lessee executing and filing of record a declaration of such uniti7-ation or refonnation, -Mlich declaration shall
describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have thereto fore been
conunenced. Production , drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall he
treated as if it were production, drilling or reworking operations or a well shut in for want of a market under this lease _ In lieu of the royalties elseVli1ere herein
specified, including shut-in gas royalties, Lessor shalt receiv.:: on production from the unit so pooled roy<1lties only on the portion of such production allocated to this
lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in rhe unit hears to the
total number of surface acres in such unit. ln addition to the foregoing, Lcliscx shall have the right to unitize, pool, or combine all or any part of the above described
lands as to one or more of the formations thereunder with other lands in the same geni!ral area by entering into a cooperative or unit plan of development or operation
approved by any governmental authority and, from time to time, ,,..;th like approval, to modify, change or terminate any such plan or agreement and, in such ew!H,
thd terms, conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drilling and development requirt:mt:nts of this lease, express or impliec.l, shall be satisfied hy compliance with
the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the
event that said above described lands or any part thert:of, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
the production thi!refrorn is allocated to different portions of the land covered hy said plan, then the pnxluction allocated to any particular tract of land shall, for the
t>foduccrs 88 -PAID UP
Revised
PAID-UP OIL AND GAS LEASE
AGREEME"<T. Made an d entered inlo the 27th dav o f November
Michael L Gould
. 201 _3__ _ bv and bet=..-
141 Valley Drive Kamiah, 1.0. 83536
l ;rs11 Piceance LLC v.+.ose address is
whose address is
. heremafter called Lessor (whether one or more) and
1050 17•• Street Denver. CO 80265
hereinafter called i....css1.:.
W!TNESSETI!, That lhe Lessor. for and in consideration of TEN AND MORE DOU.A RS (SIO .oo+) cash in hand paid, the receipt of which is nere"'
ackno<Medsed, and tile covenants and agreements hereinafter cmtained, has wanted, dem ised, leased and let , and by these presents does !'f1!!l'-demise. lease and l•f
exctusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of drilltng, mining, exploring by geophysicaf and otne~
;nc"l nods. and operating for Md JYnduclng therefrom <>41 and all gas of whatsoever nature Of ki nd . specifically induding coalbed methane and any and all substances
:.-rO<Juccd in associat ion thercw;th from coal-beanng formations . with rights of way and easements for roads, laylng pipe lines, and erection of structures thereon to
produce, save and talie care of said products. all that ccrtam tr•ct of land situated in the County oH:arfield State of Colorado, described as follow.;, to-wit :
Township 6 South. RHge 92 West of the 6'" P.M.
Stttion 9: Tract in th~ NE/4 NF./4 and Lot;,
together with any revcnionary rights !herein, and together IMtlt all strips Of parcels of land, (not, h~. to be cmstrued to include pan;cls comprising a regular 40-
acre legal subdivision or lot of oppmximately corresponding ~) adjoining or contiguous to the above described land and owned or claimed by Lesoor, and
<e•nrainino I l.4560 ac~. more or leo.s _
; ~ It IS awee<f that this lease shall mnain in force for a tenn of three (3) years and as long thereafter as oil or gas of whatsoever natun: or kind is
produced from said leased pmnises or on acreage pooled therewith, or drilling operalions 8R continued as hereinaft..-provided. If, al the e>tpiration of the primary
1enn of this lease. oil ar gas is not being produced on the leased premises or on 8Cf'e88e pooled therewith but Lessee is then engased in drilling or re-...n:ing
operations thereon. then this lease shaJI continue in force so long u operations arc being continuously prosecuted on the leased premises or on 8Gfeagc pooled
!herewith; and operations shall be coruidered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of
one well and the beginn ing of operations foe the drilling of a sub~ueot well . If after discovery of oil or gas on said land or on acrease pooled therewith, the
production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re--\Wfkm g
operanons within ninety (90\ days from dale of cessation of production or from date of completion of dry hole . If oil or gas shall be discovered and produced as a
result of such operations at or aft..-the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the lea.ed
prenuses or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or oo tbc lands pooled therewith , for the purpose of developing coalbed gas. the
Vw1lrd "operations" diaJl me.an, in addition to those matters covered in the prccc:ding paragraph. ( l ) operations of said wells to remove \W.ter or other substances from
the coal bed, or to dispose _of auch -i..-or other substances, even though such operations do not resul t in the production of h_ydmcarbons in paying quantities, or (2)
shut!tng-in or othCTV11se dtscont1nu1ng production from said wells to allow for surface or undcrsround mining affecting the dnllstte or well bore
2 . This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall oot be obligated, except as otherwise provided
hettin. to commence or continue any operations durins the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and .. to any sln!ta OI stratum by delivcrin8 to Lessor or by filing f0< record a release or releases, and be relieved of all obligation
thereafter accruing as to the acreaae surrendered.
3. In coosidenLtion of the premises the said Lessee covenants and atzrecs:
Isl To deliv..-to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on !laid land, the equal eigbleftl pen:ent
(18°/o) part of all oil produced and saved from the leas«! premises
2nd To pay Lcowr on gas and casinghcad g,.. produced frorn said lorn! (I) when :sold by Lessee, <ighkal pcra:nt ( 111•/o) of the ner proceodll
derived from such sale OI (2) when u>ed by U:ssee off said land or in the manufa.cturc of gasoline or other produces, the marltet value, at the
mouth oftbe well, of eighteen perunt (18"/o) of such g .. lllld casinghead gas, L<:ssor's intcest, in either case, to bear eigbteeo PC!l'Ullt
(18%) of the cost of compn:ssing, datydrBling and othc™se treating such!!"" or casinghead gas to render it matketable or usable and etgbteea
percent (18"/o) of the cost of gathering and transporting such gas and casinghcad gas from the mouth of the well to the point of sale or use.
3rd to pay l...cssot-(ors~ produced from any oil well and used off the pn:m•ses or U\ the manufacture of gasoline or any other product., a royalty of aclltem percent (18%) of the proceeds, at the mouth of the well, poyablo monthly at the prevailing mar1cer rote.
4. Where sas trom a well "-hie of producing gas is not sold "' used, Lcsscc may pay or tender as royalty to the royalty owners One Dollar per ycac per
net acre rewned hereunder. auch payment or tender to be made on or before the anniversary date of this )ease next ensuing after the expirmion of90 days from the
date such well is shut in and thereafter on or bef~ the anni~rsary dale of this lease during tho period such well is shut in _ lf•uch payment or ter>der is made, it will
be considered that gas is being produced within the meaning of this lease.
S. If said Less.or OVwTl5 a less interest in the above described land than the entire and undivi ded fee simple estate therein> then the royalties {mcludLng kn)
shut-m gas royalty) herein rrovidcd for shall be paid th• Lcs.sor only in the proportion v.i>ich Lessor's interest bears to the whole and undivi ded fee
6 . Lessee shat have the right to use, free of cost. gas. oil and W1Ier prOOuccd on said land for Lessee's operation thercc;>n .
7. When requcoted by Lessor, Lessee shall bury Lessee's pipeline below plow depth
8 . No ..... u shall be drilled n.._ titan 200 feet to the house or barn now on ..id premises without written consent of Lessor .
9 . Lessee shall pay for damages caused by Les.see 's opentions to growing crops on said land.
I 0 . Lessee shall have the right at any ti me to remove all machinery and fixtures placed on said premises. including the right to draw and remove casing
11. The rights of Lessor and Les.see hereunder may be &&!igned ii\ whole or part No change in ovmership of Le5sor's interest (by ass1gnrnent or
otherwise) shall be binding on Lessee until Lessee has been furn ished. with notlce, consisting of certified copies of all rccorde.d instruments or documents and other
1orormllion nec.....y to establish a complete chain of record title trom Lessor, and then only with rcspecl to payment! thereafter made. No oth..-kind of notice,
whether actual or con.ruuctivc. shaJJ be banding on Les.sec. No present or future division of U!ssor's o'Mlership as to different portions or parcels of said land shall
operate to enlarge the obligations or diminish the rights of Lessee, and a II Lessee's op<n<tions may be cooducted without regard to any such division. If all o.-any
part of this IC&3e is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
12 . Lessee, at its option. is hereby given the right and po-wcr at any time and from time to time as a recurring right, either before or aft.er production, as to
al l or any part of the land described herein and as to any one or more of the forma tions hereunder, to pool or unitize the leasehold estate and the mineral estate
<overecl by this lease with other land. lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, omen in
Lessee 's Judgment it is necessary or advisable to do so, ond irrespective of whether authority similar-to this exists w;th respect to such other land, lease or leases _
Likewise, units inviously fonned to include formations ool producing oil or gu, may be reformed to exclude such non-producing formations . The forming "'
reforming of any unit shall be accomplished by Lessee executing a.nd fHing of record a declaration of sueh unitization or reformation. "Which declarauon shali
describe tho unit . Arry unit may include land upon which a =II has theretofore been completed or upon 1Mti<:h operations for drilling have thcretofure been
commenced. Pmd11Ction, drilling or rC'M)fking operations or a v.<:ll shut in for want of a marl< ct anywhere on a unit which includes all or a port of this lease shall be
treated as if it were production, drillins or reworking operations or a well shut in for want of a market under th is lease. In lieu of the royalties elsewhere herein
spec1tied. illQluding shut-in gas royalties, Lessor shall recei"" on production from the unit so pooled royal~ only on the portion of such production allocated to this
lease; such allocation ohall be th.i proportion of the unit production that the total number of surface acres cover«! by this lease and included in the unit bears to the
total number of surface acres in such unit. In addition to the forcgoing, Lessee shall have the right lo unitize, pool, or combine all or any part of the above described
lands as to ooe or more of the fonnations thereund..-with otlier lands in the same general area by enterins into a cooperati"" or unit plan of de..,lopmcnt or operation
approved by any sovcmmental authority and, from time lo time, IMth li ke approval, lo modify, change or terminate any such plan or agreement and, in such even~
the terms, conditlom and provisions of th.is le~e shal l be deemed modified to conform to the term!, conditions, and provisions ofsueb approved cooperafrve or unit
pJan of development or operation and, particularly, aU drilling and development requirements of this lease, cxprC:!.S or i mplied, shall be satisfJed by compliance with
the drilling and dcwlopment 1t>quircments of such plan or asreemen~ and this lease shall not terminate or expire during the life of such plan or agreement. In the
event that said above described lands or any port thertof, shall hereafter be operated under any such coopmitive or unit plan of development or operation ..men.by
the proc:h.action tbettffom ls allocated to different ponions of the land covered by said plan. then the production aJloca1ed to any pan:ie ular tract of !and ~aJl. for the
1111 w,1~ .. r~rr1 ~.1 rLH1.~ w.•, rJJt11 ~~~~''i·'i'J 1 ~'1i~~r~iH 11111 Recept~on~: 844568 ''
12 123 12013 12 :52 2 1 PM Jean Alber i co 1 of 2 Rec Fee $16 00 Ooc l'"ee :O 00 GARFIEL D COU NT Y CO
Producers R8 -PAID UP
Revised
PAID-UP OIL AND GAS LEASE
AOREEMENT, Made and entered into the 27th day of November
Harriet J. Gore
'20 1 3 , by and bt:t \\een
wimse address is
131 Cashway Road, Kamiah, l.D. 83536
Ursa Piceance LLC \\i1ose address is
, hereinafter called I essor (v.hether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Lessee:
WITNESSETIJ, lliat th.; Lessor, for and in considerat ion of TEN AND MORE IX>LLARS ($10 .00+) cash in hand paid, the receipt of which is hereby
acknowledged, and the covenants and agreements hereinafter contained, has grunted, demised , lea sed and let, and by these presents does grant, demise, lease and lc:t
exclusively unto the said l...cssee, the land hereinafter described, v.ith lhe exclusive right for the purpose of drilling, mining, exploring by geophysical and other
methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, specifically including coalhed methane and any and all substances
produced in association therewi th from coal-hearing fo rm ations, with rights of way and easements for roads, laying pipe lines, and erection of structures thereon to
produce, saw and take care of said products, all that certain tract ofland situat"'1 in the County of Garfield State of Colorado, described as follows, to-wit:
Township 6 South, Range 92 West of the 61h P.M.
Section 9: Tract in the NE/4 NE/4 and Lot 7.
together with any reversionary rights therein, and togeth<:r with all strips or parcels ofland, (not, hov.ever, to be construed tu include parcels comprising a regular 40 -
acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above described land and owned or claimed by Lessor, and
containing 11.4560 acres, more or less.
1. It is agreed that this lease shall remain in force for a term of three (3) years and as long thereaJler as oil or gas of v.hatsoever nature or kind is
produced from said lensed premises oc on acreage pooled therewith, or drilling operations are continued as herninafter provided . If, at the expiration of the primary
tenn of this lease, oil or gas is not bein g produced on 1he leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in focce so long as operations are being continuously prosecuted on the leased premises or on acreage pcx>led
therewith ; and operations shall be considered to be continuously prosecuted if not moce than ninety (90) days shall elapse between the completion or abandonment of
one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oi l or gas on said land or on acreage pool_ed there,\ith, the
production thereof should cease from any cause after the primary term, this lease shall not tenninate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or frorn date of completion of dry hole. If oi l or gas shall be discovered and produced as a
result of such operations at or after the expiration of the primary term of this lease, this lease sha ll continue in force so long as oil or gas is produced frorn the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, for the purpose of developing coalbed gas, the
word "operations" shall mean, in addition to those matters covered in the preceding paragraph . (I) opera tion s of said wells to remove water or other substances from
the coalbed, or to dispose of such water or other substances, even though such OJk."l'atio ns do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or othern.ise discontinuing production from said wells to allow for surface or undergroond min ing affecting the drillsite or wellbore.
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided
herein, to commence OI' continue any operations during the primary term . Lessee may at any time or times during or after the primary tenn surrender this lease as to
all or any portion of said land and as to any strata or stratum by delivering to I .essor or by tiling for record a release or releases, and be relieved of all obligalion
thereafter accruing as to the acreage surrendered.
3 . In consideration of the premises the said Lessee cove nants and agrees:
1st To deliver to the credit of Lessor, tree of cost, in th" pip.; line to which Lessee may connect \Velis on said land, the equal eighteen percent
(18%) part of all oil produced and saved fron1 the leased premises.
2nd Tu pay Lessor on gas and casinghead gas produced from said land (1) when so ld b y Lessee, eighteen percent (18°/o) of the n<lt proceeds
derived from such sale or (2) v.hen used bJ. Lessee off said land or in the manufacture of gasoline or other products, the market value, at the
mouth of the well of eighteen percent t18°/o) of such gas and casinghead gas, Lessor 's interest, in either case, to bear eighteen {>ercent
(18°/o) of the cost of compr.:ssing. dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (18°/o) of the cost of gathering and transporting such gas and casinghead gas from the mouth of the well to the p oin t of sale or use.
3rd lo pay Lessor for gas .P!:oduced th~n any oi l well and used off the premises or in the manufacture of gasoline or any other product, a royalty of
eighteen percent (18°/o) of the prm.-eeds, at the mouth of the well, payable monthly at the prevailing ma rket rate.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalt y to the royalty owners One Dollar per year per
net acre retained hereunder, such pa:1-ment or tender to he made on or before the anniversary date of this lease next ensuing after the expiration of90 days from the
date su ch well is shut in and thereafter on or before the anniversary date of this lease during the period such we ll is shut in . If such payment or tender is made, it "'-ill
be considered that gas is being produced within the meaning of this lease .
5. If sai d Lessor owns a les s interest in the above described land than the entire and undivided foe simp le estate therein, then the royalti es (incl ud ing any
shut-in gas royalty) herein provided for shall he paid the Lessor only in the proportion wl1ich Lessor's interest bears to the v.iiole and undivided fee.
6. Lessee shall ha ve the right to use, free of cost, gas, oi l and water produced on sa id land for Lessee 's o~ratio n thereon.
7 . When requested by Lessor, J .essee shall bury Lessee 's pipeline below pl ow depth.
8. Nu well shall be drilled nearer than 200 feet to the hou se or ham now on said premises without written consc:nt of I..<..-ssor.
9 . Lessee shall pay fi)!' damages caused by Lessee's operations to growi ng crops on sa id land.
10. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premisc:s, includin g the right to draw and remove casing.
11. The rights of Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of I ..:ssor's in terest (hy assignment or
otherwise) shall b e binding on Lessee until Lessee has been fumishc.:d with notice, consisting of certified copies of all recorded instnunents or docwnents and other
in form ation necessary to establish a comp lete chain of record title from Lessor, and then onl y "ith respect to payments th.,,..oafier made. No other kind of notice,
whether actual or constructive, shall he binding on l...cssee . No present or ftiture division of Lessor's ownership as to difterent portions or parcel s of said land shall
operate to enlarge: the ohligatiru1s or diminish the rights "!'Less~~. and all J...es~ee·s ~perations may he c.:onducted ;\·ithout regr.rd to any such di~ision . Jf all or aay
part of this lease is assigned, no leasehold o v.ner shall be liable for any act or ornission of any other leasehold owner.
12. Lessee, at its option , is hereby given th e right and power at any time and from time to time as a recurring right, either before or after product ion , as to
all or any part of the land described herein and as to any one or more of the fonnations hereunder, tu pool or unitize th e leasehold e state and the mineral estat.::
covered by this lease with other land , lease or !<lases in the immediate vici nit y for the production of oil and gas, or separately for the production of either, when in
Lessee 's judgment it is necessary or advisable to do so, and irrespective of \WJether authority similar to this exists \\ith respect to such other land, lease or leases.
Likewise, units previously fom1ed to include form ations not producing oil oc gas, may be refonned to exclude such non-producing formations . The fonning or
reforming of any unit shall he accomplished by Lessee executing and filing of record a declaration of such unitizati on or reformatirn1 , \\hich declaration shall
describe the unit. Any unit may include land upon "'hich a well has theretofore heen completed oc upon which operations for drilling have theretofore heen
commenced. Production, drilling or reworking o~rat i o ns or a well shut in for want ofa market anywhere on a unit which includes all or a part of this lease shall he
treated as if it were production, drilling or reworking operatirnis or a well shut in for want of a market under thi s leas e. ln lieu of the royalties elsev.here herein
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this
lease; such allocation shall he that proportion of the unit production that the Iota! numb~-r of surface: acres covered hy this lease and included in th<> unit bears to the
total number of surface acres in such unit. In addition to the foregoing, I .essee shall have the right to unitize, pool , or comb ine all or any part of the above described
land s as tu one or more of the fonllations t;1ereunder v.i th other lands in the same general area hy entering into a cooperntiv.; or unit plan of development o r opc:rdtion
approved by any governmental 11uthority and. from time to time, '~ith like approval , to modi!)'. change or terminate any such plan oc agreement a nd, in such event,
the terms, conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drilling and devdopment requirements oftl1is lea se, c:xpress or implied, shall be satisfied by compliance with
the drilling and development requiren1ents of such plan or agreement, and this lease shall not terminate or expire durin g the life of such plan or agreement. In the
event that said above described lands or any part thereof, sha ll hereafter be opera ted under any such cooperative or unit plan uf development or operation whereby
thu production therefrom is allocated to different por1ions of the land covered by said plan, th.on the production allocated to any particular trac t of l:md shall , for the
1111 ~11 ~ .. r.'tT1 ~4~r-r1~r~1t~'~,1~,~~·l~~w ~r~'·J11,1 i1,11, 11111
Reception~: 844569
12123 /2013 12 :52 :2 1 PM Jean Albe rico
1 of 2 Rec Fee ·$16 .DO Doc Fee :0 .00 GARFIELD COUN TY CO
Produc= &8 PAID LP
Revised
PAID-UP OIL AND GAS LEASE
AUREEMENf", Made and entered into the 27th day of November
Ruth G. Vetter
• 201 3 , by and between
""i1ose address is
8623 Gladiola Circle Arvada, C.O. 80005
Ursa Piceance LLC \\hose address is
, hereinafter called Lessor (-M1ether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Lessee:
WITNESSETH, That the Lessor, for and in consideration of TEN AND MORE DOLLARS ($ 10.00 +) cash in hand paid, the receipt of which is hereby
acknowledged, and the covenants and agreements hereinafter contained, has granted, demised , leased and let, and by 1hese presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter descrihed , with the exclusive right for the purpose of drilling, mining, exploring by geophysical and other
methods, and operating for and producing there!Tom oil and all gas of-M1atsoever nature or kind, specifically including coalbed methane and any and all substances
produced in association therewith from coal-bearing formations , ""ith rights of way and easements for roads, laying pipe Jines , and erection of structures thereon to
produce, save and take care of said products, all that certain tract of land situated in the County of Garfield State of Colorado, descrihed as follows , to-wit:
Township 6 South. Range 92 West of the 61b P.M.
Section 9: Tract in the NE/4 NE/4 and Lit 7.
together with any reversionary rights therein, and together with all strips or parcels ofland, (not, however, to be construed lo include parcels comprising a regular 40-
acre legal subdivision or lot of approximately corresponding size) adj oi ning or contiguous to the above descrihed land and owned or claimed hy I .essor, and
containing 11.4560 acres, more or less.
I. It is agreed that 1his lease shall remain in force for a term or three (3) years and as long thereafter as oil or gas of \Miatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provi ded . If, at the expiration of the primary
tenn of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are heing continuously prosecuted on the leased pren1ises or on acreage pooled
therewith; and operations shall be considered 1o be continuously prosecuted if not more than ninety (90) days shall elapse he~n the completion or abandonment of
one well and the heginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith , the
production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
opt:rations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a
result of such o perations at or after the expiration ofrhe primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leas.:d
nremises or on acrea2e oooled therewith.
· In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, for the purpose of developing coalbed gas, the
word "operations" shall mean, in addition to those matters cover~d in the preceding paragraph . (I) operations of said wells to remove water or other substances from
!he coalbt:d, or to dispose of such water or other substances, even though such opt:rations do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for surface or underground mining affecting the drillsite or wellhore.
2 . 11lis is a PA IO-UP LEASE. In consid.,.-ation of the dm~n cash payment, Lessor agrees that L<:ssee shall not be obligated, except as otherwise provided
herein, tn commc:nce or continue any operations during the primary tem1. Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and as to any strnta or stratum by delivcring to Lessor or h y filing for record a release or releases, and be. relit:ved of all obligation
thereaner accruing as to the acreage surrendered .
3 . In consideration of the premises the said t.essee cov.:n:mts and agrees:
1st To deliver to the credit of Lessor, !Tee of cost, in the pipe line to which I .essee may conn.:ct wells on said land , the equal eighteen percent
(18°/o) part of all oil produced and saved from the leas.:..! premises.
2nd To pay Lessor on gas and casinghead gas produced from said land (1) -Mien sold by Lessee, eighteen percent (18°/o) of the net proceeds
derived from such sale or (2) ....+tt:n used by Lessee off said land or in the manufacture of gasoline or other products, the market value, at the
mouth of the well , of eighteen percent (18°/o) of such gas and casinghead gas, Lessor 's interest, in either case, to bear eighteen .(>ercent
(18°/e) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usahle and eighteen
percent (18°/o) of the cost of gathering and transpor1ing such gas and casinghead gas from the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas produced !Tom any oil -ll and used off the pren1ise s or in the manufacture of gasoline or an y other product, a royalty of
eighteen percent (18°/o) of the proceeds, at the mouth of the well, payable monthly at the prevailing market rate.
4 . Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre retained hereunder, such pa)ment or tender to be made on or before tht: anniwrsary date of this lease next ensuing after the expiration of90 days !Tom the
date such well is shut in and thcn:afh:r on or before lhe nnniversarydatt: of this lease during the period such well i s shut in . If such payment or tender is made, ir will
be c1~1sidered that gas is being produced within the meaning ofthis lease.
5 . If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein , then the royalt ies (including any
shut-in gas royalty) herein provided for shall be paid 1hc I .essor only in the proportion which I .essor 's interest hears to the whole and undivided fix.
6 . Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for l.essee's operation thereon .
7 . Wh"11 requeslt:•.f hy l.essor, Lessee shall hury Lc:ssee 's pipeline below plow depth.
8 . !'ll'o well shall be drilled nearer than 200 feet to the house or barn now on said premises \"1thout ""ritten consent of Lessor .
9. Lessee shall pay for damages caused by Lessee's operations to gro·wing crops on said land .
JO. L:ssee shall have the right at any time to rem ove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor and Lessee hereunder may be assignc:d in whole or part. No change in ownership of l .essor's interest (hy assignment or
otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other
infonnation necessary to establish a complete chain of record ti1le from I.essor, and then only with respect to payments !hereafter made. No other kind of notice,
\Miether actual oc constructive, shall be bmding on Lessee . No present or future division nf Lessor's ownership as to different portions or parcels of said land shall
operate to .,nlarge the obligations or diminish the rights of l essee. and all Lessee's o!'erutions may be conducted without regard to any such divi~i"" If all or an y
p11r1 of this lease is assigned, no leasehold O"-ner shall be liahle for any act or omission ofuny other leasehold owner.
12 . Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to
all or any part of the land described herein and as to any one or more of the fonnations hereunder, to pool or unitize the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately for the productioo of either, when in
Lessee's judgment it is necessary or advisable to do so, and irrespective of .... 1iether authority similar to this exists with respect to such other land, lease or leases .
Likewise, units previously formed to include formations not producing oi l or gas, may he reformed to exclude such non-producing formations. The fanning or
reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, ....+tich declaration shall
describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore heen
commenced. Production, drilling or reworking operations or a well shut in for want ofa mark~! anywhere on a unit which includes all or a part of this lease shall be
treated as if it were production, drilling or reworking operations or a wdl shut in for want of a market under th is lease. In lieu of the royalties else\Miere herein
spc:~ified , including shut-in gas royalties, Lessor shall receive on production from the un it so rxioled royalties only on the portion of such production al10C11tal to thi s
lease; such allocation shall be that proportion of the unit production that the total numher of surface acres covered by this lease and included in the unit bears to the
total number of surface acres in such unit. In addition to the foregoing, Lessee shall have the right to tmitize, pool , or combine all or any part of the above described
lands as to one or more of the formations thereunder with other lands in the same general ar.,a by entering into a coopernti ve or unit plan of development or operntion
approved by any governmental authority and, from time to time, \\ith like approval, lo modify, change or tenninate any such plan or a~reement and, in such event,
the terms, conditions and provisions of this lease shall he deemed modified to confonn to the 1erms , conditions. and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drilling and development requ:rements of this lease, express or implied , shall be satisfied b y compliance with
lhe drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the li fe of such plan or agreement. In the
event that said ahove descrihed lands or any part thereof, shall hereafter be operated undo.:r any such coopenttive or unit plan of development or operation whereby
the production therefrom is allocated to different portions of the land covei·ed by said plan , then the production allocated to any particular tract ofland shall, for th.;
1111 N,1r_.~,J~~U~1 ""'U rlH W1h'~~,,~ m,-,u,~'~,,,I J~·i1,1/, 11111
Reception ~: 845442
01 120/2014 03 :27 :21 PM Jean Alberico
1 of 2 Rec Fee :$16 00 Doc Fee :0 .00 GARFIELD COUNTY CO
Pr od ucers 88 -PAID l IP
Revised
PAID-UP OIL AND GAS LEASE
AGREEMENT, Made and entered in10 lhe 20th day of December
Gloria Elliott
.• 201 3 , by and ~h..cen
whose address is
845 County Road 296 Rifle, C.O. 81650
Ursa Piccance LLC whose address is
, hereinafi<>r called Lessor (\11he lh e r one or more) and
1050 17th Street Denver, CO 80265
hereinaHer called Lessee:
WITNESSJ::TI!, Tiiat the Lessor, for and in consideration of TEN AND MORE DOJ.l.ARS ($ I0 .00+) cash in hand paid, the receipt of which is hereby
acknowledged, and lhe covenants and agreements hereinafter contained, has granted, d emised, l<!ased and let , and by these presents does grant, demise, lease and let
excl usi vely unto the said Lessee, the land hereinaner described, with the exclusive right for the purpose of drilling, m ining, exploring by geophys ical and other
method s, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, specifically including coal bed methane and any and all substances
produced in association therewith from coal-bearing fom1ations, with rights of w.ty and easements for roads, la ying pipe lines, and erection of structures thtlfeon to
produce, save and take care of said products, all that certain lract ofland situated in the County of Garfield State of Colorado , described as follows, to-wit :
Township 6 South, Range 92 West of the 61h P.M.
Section 10 : Parcel in NW/4NW/4.
together v.ith any reversionary rights therein, and together with all strips or parcels o f land, (not, ho\>.ever, to be construed to include parcels comprising a regul:ir 40-
acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above described land and owned or claimed by Lessor, and
containing 10.3860 acres , more or less.
1. It is agreed that this lease shall remain in force for a tenn of three (3) years and as long thereafter as oil or gas of v.i1atsoever natur~ or kind is
produ ced from said leased premises or on acreage pooled thcr~with , or drilling operations are continued as hereinafter provided . If, at the expiration of the primary
term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be considered to be continuously prosecuted if not more than ninely (90) days shall elapse between the compl.:tion o r abandonment of
one well and the beginning of operations for the drilling of a subsequent Wt!ll. If after discovery of oil or gas otl said land or on acreage pooled therewilh, the
production thereof should cease from any cause after the primary term, !his lease shall not tenninate if Lessee commences additional drilling or re-working
operations within ninety (90) days from date of cessation of production or from date o f completion of dry hole. If o il or gas shall be discovered and produced as a
result of such operations at or after the exp iration o f the primary term of this lease, 1his lease shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the <lVenl a well or wells is <lrilh:d and completed on the lands, Jr on lhe land s pooled therewith, for the purpose of developing coalhad gas, !he
word .. operations" shall mean, in addition to those matters covered in the preceding paragraph. (I) operations of said wells to remove waler or othar substances from
tl1d coalbed, or to dispose of such water or o ther substances, even th o ugh such operntions do not result in the producti<Ml of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for surface or underground mining affecting the drillsite or wellbore.
2. '!his is a PAID-UP LEASE. In consideration of the down cash pa)1nent, I .cssor agrees that Lessee shall not be obligated, except as otherwise provided
herein, to commence or continue any operations during the primary tenn. Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and as to any strata or strntum hy delivering lo I..cssor or hy filing for ro cord a release or r<>leases, and be relieved of all obligation
thereafter accruing as lo the acreage surrendered .
3. In consideration of the premises the said Lessee covenants and agrees :
I st To deliver to the credit of Lessor, free of cost, in lh e pip<! line to \\i1ich Lesse.! may connect wells on said land, the equal eighteen percent
(18°/o) part of all oil produced and saved from the leased premi ses.
2nd To pay Lessor on gas and casinghead gas produced from said land (1) wheri sold hy Lessee, eighteen percent (18°/o) of the net proceeds
derived from such sale or (2) "hi!n used hJ. Lessee off said land or in the manufacture of gasoline or other products, the market value, at the
mouth of the well, of eighteen percent t18°/o) of such gas and casinghead gas, l .1.-ssor's interest, in either case, to bear eighteen percent
(18°/o) of the cost of compressing, dc:hydrating and otherwise treating such gas or ca~inghead gas to render it marketable or usable and eighteen
percent (18°/o) of the cost o f gathering and transporling such gas and ca.,inghcad gas from the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas produced from any oil v.ell and used off the premises or in the manufacture of gasoline or any other product, a royally of
eighteen percent (18°/o) o fd1c proreeds, a l the m outh of the well, pa yd ble monthly at the prevailing market rate.
4. Where gas !Tom a well capahle of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre r~tained hereunder, such pa}ment or tender to hi! made on or before the anniversary date of this lea se next ensuing after the expiration of 90 days rrom the
date such v.ell is shut in and thereafter on or be fo re the anniversa ry date of this lease during lhe period such well is shut in. If such paymerit or tender is made, it v.,ill
be considered thal gas is heing produced within the meaning of this lease .
5 . If said L:ssor owns a less interest in th!! above described land than the entire and undivided fee si mple estate therein , then the royalties (i ncluding any
shut-in gas royalty) herein provided for shall be paid the I .essor only in the proportion which Lessor 's interest bears to the v.hole and undivided fee . ·
6 . Lessee shall have th e right to u se, free of cost. gas, o il a nd water produced on sai d land for Lessee 's OJ"'ration thereon .
7 . When requested by Lessor, ! ,;:ssee shall bury Less<Je 's pipeline below plow dapth.
8. No well shall be drilled nearer than 200 feet t o the house or ham no w on said premises without written consent of Lessor.
9. Lessee shall pay for damages caused by l<lssee 's opt.'!"ations to growing crops m said land .
10 . [ .essee shall have the right at any time to remove all machinery and fixtures placed on said premises, including lhe right to draw and rem ow casing.
11 . The rights of Lessor and I .essee hereunder may ha assigned in whole or part. No change in m~nership of Lessor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee has heen furnished with notice, con sisting o f certified copies of all recorded instnnnents or docum;mts and other
information necessary to establish a complete chain of record title from Lessor, and then only v.ilh respect to payment s thereafter made. No other kind of notice,
v.tielher actual or constructive, shall~ binding on I .essee. No present or future division of Lessor's ownership as to di fK,.ent portions or parcels of said land shall
operate to enlarge the ohligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to an y such divisi on. If all or an y
part of this lease is assigned, no leasehold owner shall be liable for an y act or omission of any o ther leasehold own~r.
12 . Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to
all or any part of the land described herein and as to any one or more of the formations hc:reundcr, to pool or unitize the leasehold estate and the mineral estate
covered by thi s lease with other land , lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in
l .essee's judgment it is necessary or advisable to do so, and irrespective of wheth~r authority similar to this exists with respoct to such other land, lease or leases .
Likewise, units previous ly formed to include formations not producing oi l or gas, may b~ refom1ed to exclude such non-producing formations. The fom1ing or
reforming of any unit shall be accomplished b y l.<1ssee executing and tiling of record a declaration of such unitizati on or reformation, v..hich declaration shall
describe the unit. Any unit may i11clude land upon v.hich ll well has th<!Tetofore be.:n completed or upon which operations for drilling have theretofore been
commenced. Production , drilling or reworking operations or a wdl shul in for want of a market ~nyv .. +.cre on a unit which includes all or a part of this tease shall be
treated as if it Wtlfe production, drilling or rewnrking operations or a well shut in for Wdllt of a mark.:t under this lease. In lit:t1 of the royalties elsel>J1ere herein
spacified, including shut-in gas royalties, ! .essor shall rc:cei ve on production from the unit so pooled royallies (l nly Llll 1he portion of such production allocatt:<l to this
lease; such allocation shall be that proportion o f the unit production that the total number of surface acres covered by this lease and inchtdoo in the unit bears to the
total number of surface acres in such unit. In addition to ti!<! foregoing, L<:ssee shall have the right to unitize, pool , or comhine all or any part of the above descrihcd
lands as to one or more of the formali(lns thereunder with oth.:r lands in the same gcn~nl area hy entering into a cooperative or unit plan of development or Op<!ration
approved by any govemmental authority an d, from time to lime, v.1th like approval, to modify, change o r tcnninate any such plttn or agreement and, in such event,
the terms, conditions and provisions of this lea se shall be deemed modi lied lo confom1 to th.: terms, conditions, and provisions of such approved cooperative or unit
plan of development or operation and, particularly, all drillin g and development requirements of this lease, express or implied, shall be satisfied by compliance with
the drilling and development requiren1ents of such plan o r agreemenl, and this lease shall not terminate or expire during tha life of such plan or agreement. In the
event that said a hove described lands or an}' part thereat; shall h..,,-ca fter be operated under any such coopcrative or unit plan of development or operation whereb y
the production therefrom is allocated to dirt'=:r.:nt portions of the land covered hy said plan, th~n rhe production allocated to any particular tract of land shall, for the
1111 ~,1 ~ .. r~,,~~.~~,H~ ~11,,r,t~~~~~~~.UN~~~IA~~'~M, 11 ll I
Receptionn : 845443
0 11 20 /2014 03 :27 :2 1 PM Jean Rlberico
1 of 2 Rec Fee :$16 .00 Doc Fee :0 .00 GRRFIELD COU NTY CO
Producers 88 · PAID UP
lkvised
PAID-UP OIL AND GAS LEASE
AGREEMENr, Made and entered into the 18th day of December
Gloria Elliott
• 201 3 , by and betwee!I
·whose address is
845 County Road 296 Rifle, C.O. 81650
Ursa Piceance LLC v.hose address is
, hereinafter called Lessor (\\nether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Lesse.::
WITNESSETII, llial the I.cssor, for and in con sideration of TEN AND !\.!ORE DOLL'\RS ($10.00+) cash in hand paid , the receipt of which is hereby
acknowledged, and the covenants and agreements hereinafter contained, has granted , demised, leased and let, and by these presents does grant, demise, lease and let
~xclusively unto the sa id Lesse.:, the land hereinafter described, v.ith the exclusive right for the purpose of drilling, mining, exploring by geophysical and other
methods, and operating for and producing therefrom oil and all gas of whatsoeve r nature or kind , specifically including coalhed methane and any and all substances
produced in association th.:rewith from coal-bearing fo nnalions, v.ith rights of way and easements for roads, la yi ng pipe lin es, and erection of stmcnires thereon to
produce, save and take care of said products, all that certain tract ofland silua led in the County of Garfield State of Colorado , described as follows, to-wit:
Township 6 South. Range 92 West of the 61h P.M.
Section 9: Tract in the NE/4 NE/4 and Lot 7.
together with any reversionary rights therein, and together v.ith all strips or parcels of land, (not, howev.:r, lo be construed 10 include parcels comprising a regular 40 -
acre legal subdivision or lot of approximately corresponding si7.c) adjoining or contiguous to the above described land and ov.ned or claimed by Lessor,_ and
containing 11.4560 acres, more or les s.
I . It is agreed that this lea se shall remain in force for a term of three (3) years and as Jong thereafter as oil or gas of v.hatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operati ons are continued as hereinafter provided. If, at the expiration of the primary
tenn of this lease, oil or gas is not being produced on the lea sed premises or on acreage poolM therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
therewith; and operations shall be considered to b e con tinuou sly prosecuted if not more than ninety (90) days shall elapse bet\wen the completion or abandonment of
one well and the beginning of operations for the drilling of a s ub sequent \\ell. If after discovery of oil or gas on said land or on acreage pooled there'l'.ith, the
production thereof should cease from any cause after the primary term, this !ea sel shall not terminate if Lessee conunences additional drilling or r<>working
operation s v.ithin ninety (90) days from date of cessation of production or fron1 date of completion of dry hole. If oil or gas shall be discovered and produced as a
result ofsuc:h operations at or after the expiration of the primary tenn of this lease, this lease shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith .
In the event a well or wells is drilled and con1pleted on the lands, or on the lands pooled therewith, for the purpose of developing coalbed gas, the
word "operation s" shall mean, in addition to those matters covered in the preceding paragraph. (I) operations of said wells to remove water or other substances from
the coalbed, or to di spose of such water or other substances, even though such operations do not result in the production of hydrocarbons in paying quantities, or (2)
shutting-in or otherwise discontinuing production from said wells to allow for su rface or underground mining affecting the drillsite or wellbore.
2 . 111is is a PAID-UP LEASE. In consideration of the dov.n cash payment, Lessor agrees that Lessee sha ll not he obligated, except as otherwise provided
herein, to commence or continue any operations during the primary term . Lessee may at any time or times during or after the primary term surrender this lease as to
all or any portion of said land and as to an y strata or strahm by ddivering to I .cssor or by tiling for record a relea se or release.,, and he relieved of all obligation
thereafter accrning as to the acreage surrendered .
3 . In consideration of the premises the said ] .essce cownants and agrees:
1st To deliver to the credit of Lessor, !Tee of cost, in th.: pipe line to which Lessee may connect wells on said land, the equal eighteen percent
(18°/o) part of all oil produced and saved from the lea sed premises.
2nd To pay Lessor on gas and casinghead gas produced from said land (1) when ~'Old by Lessee, eighteen percent (18°/o) of the net proceeds
derived fmm such sale or (2) v.hen used b)'. Lessee off said land or in the manufacture of gasoline ·or other products, the market va lue , at the
mouth of the well, of eighteen percent l 18°/o) of such gas and casinghead gas, Lessor's interest , in either case, to bear eighteen tJercent
(18°/o) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (18°/o) of the cost of gathering and transporting such gas and casing.h ead gas from the mouth of the well to the point of sale or use.
3rd To pay Lessor for gas produced from any oil well and used off the premises or in tht: manufacture of gasoline or any other product, a royalty of
eighteen percent (18°/o) of the proceeds, at th e mouth of the \\e ll, payable monthly at the prevail in g market rate.
4. Where gas from a well capable of producing gas is not sold or used , Lessee may pay or tender as royalty to the royalty owners One Dollar per year per
net acre retained hereunder, suc h pa)'!llent or tender to be made on or before the ann iversary date of this lease next ensuing after the expiration of90 days from the
dale such ""'11 is shut in and thereafter on or before th" anniversary date of th is lea se during the period such well is shut in . If such payment or tender is made, it will
he considered that gas is being produced within the meaning of this lease.
5. If sai d I .essor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties (including any
sh ut-in gas royalty) herein provided for shall be paid the Lessor only in the proportion which (;;ssor 's interest hears to the v.hole and undivided fee.
6 . Lessee shall have the right to use, free of cost, gas, oil and waler produced on said land for I .essee 's operation !hereon .
7 . When requested by Lessor, Lessee shall bury I .essee's pipeline below plow dt:plh .
&. No well shall be drilled nearer than 200 feet to the l10ust: or barn now on said premises withour wrillen con sent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land .
l 0 . Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor and Lessee hereunder may be assigne d in \\~1ole or part. No change in ownership of l.cssor 's interest (by assigrunent or
otherwise) shall be binding on Lessc.: until Lessee ha s been fumished with notice, consisting of certified cop ies of all recorded instruments or documents and other
information necessary to establish a complete chain of record title tTom I .essor, and then only \\llh respect ro payments thereafter made. No other kind of notice,
\\hether actual or constrnctive, sha ll he binding on Lessee. No present or future divi sion of Lessor 's ownership as to different portions or parcels of said land shall
operate to enlarge the obligations or diminish th.: rights of I .essee, and all Lessee's operations may he conducted without regard to WlY such divisi on . If all or any
part of this lease is assigned, no leaseho ld ov.ncr shall be liable for any act or omission of any other lea sehol d owner.
12 . Lessee, at its option, is hereby given the righl and power at any time and from time to tim.: as a recurring ri ght, either before or after producti<~1 , as to
all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estale and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production of oi l and gas, or separate ly for the production of either, when in
Lessee's judgment it is necessary or advisable to do so, and irrcsp.:ctive of whether authority similar to this <!Xists with respect to such other land, lease or l<!ases .
Likewise, units previously fonned to include fonnations n ot producing oil or gas, may he refonned to exclude such non-producing formations. The forming or
reforming of an y unit shall be accomplished by 1.essee executing and filing of record a declaration of such unitiza1i on or reformation , v.hich declarati on shall
describe the unit . Any unit may include land upon v.ilich a well has theretofore been completed or upon which operation s fo r drilling have theretofore been
commenced. Production, drilling or n:working operat ions or a well shut in for want of a market anywhere on a unit which includes all o r a part of this lease shall be
treated as if it wer.~ production, drilling or reworking opt:rations or a well shut in for Wdllt of a market under this lease . In lieu of the royalties elsewhere herein
sp.:cific:d, including sh ut-in gas roydltics, Lessor shall receive on production from the unit so pooled royalties onl y on the portion of such production allocated to this
lease; such allocation shall be that proportion of the unit production that th.: total number of surface acres covered by this lease and included in the unit bears to the
total number of surface acres in such unit. In addition to the ti::>regoing, Lessee shall hav.: the right to unitize, p ool, or combine all or an y part of the above described
lands as to one or more ofth<l fonnations thereunder v.1th other lands in the same general area hy entering into a cooperative or unit plan of development or operation
approved by any governmental authority and, from time to time, with like approval, to modify, change or tenninate any such plan or agreement and, in such event,
the terms, conditions and provisions of this le ase shall be deemed modified to conform to the term s, conditions, and provisions of such approved cooperative or unit
pla11 of devdopment or operation and, particularly, all drilling und development requirements of this lease, express o r implied, shall be satisfied by compliance with
the drilling and devel o pment requirenients of s uch plan or agreement , and this ll!ase shall nol lenninat~ or expire during the life of such plan or agreement. In the
event that said above desLTibed lands or any part thereof; shall herea lh.T he operated under ru1y such cooperalive or unit plan of development or operation whereby
the producti on therefrom is allocated to difforenr portions of the land cover"'d hy said plan , then lht: production a ll oca h:d to any particular tract ofland shall, for the
1111 w,1~_.,J11~M~irf1i.11tH il~ll ki.'f IU, iM11 ~~ri.,N l•'l,i1,1~. 11111
Reception~: 849593
05127 120 14 04 .42 :24 PM Jean Alberico
1 of 2 Rec Fee $16 00 Doc Fee :0 .00 GARFIELD C:OUNTY CO
Producers 88 -PAID UP
Revised
PAID-UP OIL AND GAS LEASE
AOREEMENT, Made and entered into the 10th day of April
Mary Susan Sievers
• 201 4 , by and between
whose address is
9924 114th St., Southwest, Lakewood, WA 98498
Ursa Piceance LLC whose address is
, hereinafter called Lessor (whether one or more) and
1050 17th Street Denver, CO 80265
hereinafter called Lessee:
WITNESSETI I, That the Lessor, for and in consideration of TEN AND MORE DOLLARS ($10.00+) cash in hand paid, the receipt of which is hereby
acknowled ged, and the covenants and agreements hcrcin afic r contained, has granted, demised , leased and let, and by these presents does grant, demise, lease and let
exclusively unto lhe said Lessee, the land hereinafter described, with the exclusive righl fo r the purpose of drilling, mining, exploring by geophysical and olher
meth ods, and operating for and producing therefrom oil and all gas of whalsoever nature or kind, specifically including coal bed methane and any and all substances
produced in association therewith from coal-bearing formations , with rights of way and easements for roads, laying pipe lines , and erection of stru ctures thereon to
produce, s ave and take care of said products, all that certain tract of land situated in the County of Garfield State of Colorado, described as follows, to-wit:
Township 6 South, Range 92 West 6th P.M.
Section 9 : Tract or parcel of land in the NE/4NE/4 and in Lot 7
together with any rcversionary rights therein, and together with all strips or parcels of land, (not, however, to be construed to include parcels comprising a regu lar 40-
acre legal subdivision or lot of approximately corresponding siz.e) adjoining or contiguous to the above described land and owned or claimed by Lessor, and
containing I 1.4560 acres, more or less .
I. lt is agreed that this lease shall remain in force for a term of three (3) years and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said leased premises or on acreage pooled therewilh , or drilling operations arc continued as hcrcinatier provided. lf, at the expiration of the primary
term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working
operations thereon, then this lease shall continue in force so long as operations are being continuously proseculed on the leased premises or on acreage pooled
therewith ; and operations shall be considered to be continuousl y prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment o r
o ne well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on a creage pooled therewith, the
produclion thereof shou ld cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
nperations within ninety (90) days from date of =~sation or production or from date of completion or dry hole. If oil or gas shall be discovered and produced as a
rc:sult of such operations at or after the expiration of the primary term of this lease, this kase shall continue in force so long as oil or gas is produced from the leased
premises or on acreage pooled therewith.
In the event a well or wells is drilled and completed on the lands, or on the lands pooled therewith, for the purpose of developing cualbed gas, the
word '"o perations" shall mean, in addition to those matters covered in the preceding paragraph . ( 1) operations of said wells to remove water or other substances from
the coal bed, or to dispose nf such water or other substances, even though such operations do not result in the production of hyd rocarbons in paying quantities, or (2)
shutting-in or olherwi se discontinuing pwduction from said wells to allow for surface or underground mining alkcting the drillsile or well bore.
2 . This is a PAID-UP LEASE . ln consideration of the down cash payment, Lessor agrees that Lessee s hall no t be obligated , except as otherwise provided
herein, to commence or continue any operalions during the primary term . Lessee may at any lime or times during or after the primary term surrender this lease as to
all or any portion of said land and as to any strala or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation
thereafter accruing as to the acreage surrendered .
3 . In consideration of the premises the said Lessee covenants and agrees :
I st To deliver to the credit of Lessor, free of cost, in the pipe line to which 1.essee may connect wells on sai d land, the equal eighteen percent
(18%) part of all oil prodm:cd and saved from the leased premi ses .
2nd To pay Lessor on gas and casinghead gas produced from said land ( 1) when sold by Lessee. eighteen percent ( 18%) of the net proceeds
derived from such sale or (2) when used by Lessee off said land or in th~ manufacture of gasoline or ot her products, the markc:t value, at the
mouth of lhe well , of eighteen percent (18%) of such gas and casinghead gas, Lessor's interest, in either case:, to hear eighteen percent
( 18%) of the cost of compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and eighteen
percent (18%) of the cost of gathering and transporting such gas and casinghead gas from the mouth of the well to the point of sale or use .
3 rd To pay Lessor for gas produced from any oil well and used off the premises pr in the manufacture of gasoline or any other product, a royalty of
eighteen percent (l 8°/o) of the proceeds, at the mouth of the wdl. payable monthly at the prevailing mark el rate .
4 . Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royally to the royalty owners One Dollar per year per
net acre retained hereunder, such payment or tender to be made: on or before the anniversary date or this lease next ensuing after the expiration of 90 days from the
date such well is shut in and thereafte r on or before the anniversary date of this lease during the period such well is shut in . If such payment or tender is made, it will
be considered that gas is being produced wilhin the meaning of this lease.
5 . If said l.essnr owns a less interest in the above described land than the entire and undivided tee simple estate therein, then the royalties (including any
shut-in gas royalty) herein prov ided for shall be paid the Lessor r>nly in the proportion which Lessor 's interest bears to lhe whole and undivided Jee .
6 . Lessee shall have the right to use. free of cost , gas. oil and water produced on said land for Lessee's operntion thereon.
7. When requested by Lessor, Lessee s hall bury Lessee 's pipeline below plow depth .
8 . No well shall be drilled nearer than 200 feet to the house or barn now on said premi ses wilhout written consent of Lessor.
9 . Lessee shall pay for damages caused by Lessee's operations to growing crops on said la nd .
I 0 . Lessee shall have th e right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor and Lessi:e hereunder may be assigned in whole or part. No change in ownership of Les sor's interest (by assignment or
otherwise) shall be binding on Lessi:e until Lessee has been furnished with noti ce, consisting of certified copies of all recorded inslruments or documents and other
information necessary to establish a complete chain of reco rd title from Lessor, and then only with respect to payments 1hereaflcr made. No mher kind of notice.
whether ac1ual or construc1ive, shall be binding on l .cssec. No present or future divisio n nf I .cs~nr's own~rsh i !' as to differen t port ions or parcels of said land shall
o perate to enlarge the obligations or diminish the rights of Lessee, and all Lessee 's operations may be conducted without regard lo an y such division . If all or any
part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
I 2 . Lessee, al its option, is hereby given the right and power at any lime and from time to time as a re c urring right , either befo re or after production , as to
all or any part or the land described herein and as to any one or more of the formations hereunder, to pool or unitii.e the h:asehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in
Lessee's judgment it is necessary or advisable -to do so, and irrespective of whether authority similar to this exists with respect to s uch other land , lease or leases .·
Likewise, units previously formed to include formations not producing oil or gas, may be reformed to exclude such non-producing formations . 111e torming or
reforming of any unit shall be accomplished by l.cssee executing and filing of record a declaration of such unitization or reformation, which declaration shall
describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which o perations for drilling have theretofore been
cummenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which in c ludes all or a part of this lease shall be
treated as if it were production, drilling o r reworking operations or a well shul in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor s hall receive on production from the unit so pooled royalties only on the portion of such production allocated to this
lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bears to the
tota l number of surface acres in such unit. In addition to the toregoing, Lessee shall have the right to unitize, p oo l, or combine all or any part of the above described
lands as to one or more o f the formations thereunder with other lands in the same general area by en tering into a cooperative o r unit plan of development or operation
approved hy a ny governmental authority and, from Lime to time, with like approval, to modify, change o r terminate any such plan o r agreement and , in such event,
the terms , conditions and provisions or this lease shall be deemed modified to confom1 tn the terms , conditions , and provisions of s uch approved cooperative or unit
plan of development or operation and, particularly, all drilling and development requirements o f this lease, express or implied, shall be satisfied by compliance with
lhe drilling and de velopment requirements of such plan or agreement, and th is leas.: shall not lcm1inate or expire during the lifo of such plan o r agreement. In the
event that said above described lands or any part thereof, shall hereafter be o perated under any su ch cooperative or unit plan of development or operation whereby
lhe production therefrom is allocated to different portions of the land covered by said plan , then the production a ll ocated to any particular tract or land shall , for lhe
•''"t