C153314 Transfer

• Contract/PO #: C153314
• Contractor Name: Town of Parachute
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

■lli Im'i rarc iinu i•111.11/1J1f,TfIlli'-N111P'1 1I11A MI's 11111
Reception#: 783697
.. 03/24/2010 11:52:32 AM Jean Alberico
3 of 7 Rec Fee:$36.00 Doc Fee:0.00 GARFIELD COUNTY CO
and particularly, all drilling and development requirements of this lease, expressed 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 expire during the life of such plan or agreement. In the event that said
above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit
plan of development or operation whereby the production there from is allocated to different portions of
the land covered by said plan, then the production allocated to any particular tract of land shall, for the
purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced
from the particular tract of land to which it is allocated and not to any other tract of land; and the royalty
payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor
shall formally express Lessor's consent to any cooperative or unit plan of development or operation
adopted by Lessee and approved by any governmental agency by executing the same upon request of
Lessee.
6. Lessee may not assign any right, title, or interest without the prior consent of the Lessor
and consent will not unreasonably be withheld.
7. Lessor expressly does not warrant title to these premises.
8. Lessee shall comply with all laws and regulations of any governmental body purporting to
exercise taxing authority over the lands covered by this lease or the person of the Lessor herein and in so
complying, Lessee shall not be responsible for determining the legality, validity, or constitutionality of any
such law or regulation enacted or issued by any such governmental body. In determining the residence
of Lessor for purpose of complying with such laws or regulations, Lessee may rely upon the address of
Lessor herein set forth or upon the last known address of the Lessor. Neither any error in the
determination of the residence or status of Lessor nor an error in the payment of any sums of money due
or payable to Lessor under the terms of this lease which is made during the course of or as a result of
Lessee's good faith efforts to comply with any such laws or regulations shall terminate this lease or
constitute grounds for any cause of action against Lessee. All of Lessee's obligations and covenants
hereunder, whether expressed or implied, shall be suspended at the time or from time to time as
compliance with any thereof is prevented or hindered by or is in conflict with federal, state, county, or
municipal laws, rules, regulations, or Executive Orders asserted as official by or under public authority
claiming jurisdiction, or Act of God, adverse field, weather, or market conditions, inability to obtain
materials in the open market or transportation thereof, war, strikes, lockouts, riots, or other conditions or
circumstances not wholly controlled by Lessee, and this lease shall not be terminated in whole or in part,
nor Lessee held liable in damages for failure to comply with any such obligations or covenants if
compliance therewith is prevented or hindered by or is in conflict with any of the foregoing eventualities.
The time during which Lessee shall be prevented from conducting drilling or reworking operations during
the primary term of this lease, under the contingencies above stated, shall be added to the primary term
of the lease; provided, however, that delay rentals as herein provided shall not be suspended by reason
of the suspension of operations and if this lease is extended beyond the primary term above stated by
reason of such suspension, Lessee shall pay an annual delay rental on the anniversary dates hereof in
the manner and in the amount above provided.
9. It is specifically provided, notwithstanding any provision contained herein to the contrary,
that the Lessee shall not conduct any drilling or exploration operations or any operation in connection
therewith on any part of the above described land. Further, the Lessee shall not go upon or in any
manner occupy the premises above described without first having obtained permission in writing from the
Lessor specifically granting its consent to such operations or occupation.
10. The Lessee agrees that subsurface support necessary for highway purposes shall not in
any way be disturbed.
11. In the event the Lessor's needs require that this lease be canceled for reasons of the
safety, welfare, and convenience of the public, this lease is terminated within ninety (90)days after notice
of such termination is either served on or mailed to the Lessee. The Lessor shall be the sole judge of its
3 of 7 Rev 03/06