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At'226~~ B 1~.+ REC 02265]57 10/03/91 :38 $15.00 1/003
<br />F 0351 MARY ANN FEUERSTEIN CLFRIr& RECORDER I4ELD CO, CO
<br />PRODUCCR'S g{~Fhfca OIL AND GAS LEASE
<br />P.Id uv PAID UY
<br />ft.-v. 1984 /~/
<br />ill h'aGlrr,~LG/ Ih orq G%L~s /i~ , ), ylr S SG~ nni fLp~l~af~
<br />~' ~rl
<br />T!II$ Ae liC&V ENT is male vW cnureu mIO as 9f she_- 30th Jar ur 1'18Y 19~. y and Delwan
<br />__ David D. Dersllaln and David D. Dersham as Conservator of the estate and affairs of
<br />6L48 Road 210 Pine Bluffs, ldY 82082 ~ IJilliam David Dersham
<br />kaarufur<c11W "Lcswr''(whclher one or mora)anJ Batas 011 Inc. 2500 West 29th Street, Greeley, CO 80631
<br />hcRwfur WIW "Lowe". WrfY1FS5ETi{:
<br />I. Lessor, (or and in considendon of U:e sum of Ten and mOTe DOL1wA5 (g 1 ~ • 0~' 1
<br />In land paid, o(Ne royalties herein prwidW, and of Ne agrumcnu of l<uu hertin <onuicW, berth) gnnu, demise, taus W Ieu eulwively unto Layce be IaN heRirufur dueribW,
<br />for du purpos: of imxrtig+sing, uploring and drilling (or, prWuc'og, caving, eking, owNnp. Vwponinp, coring, Iwdling W Ucating oil W pu, IopeUv< with W righu, pririlepu u.1
<br />esclncnu uxlul for Lesru i opendom hereunder on WJ land and on Wds In Ne same f«Id, including but not limiud b Ne following righu: m Iq pipe Imo; b build mWr; W u couuw-s
<br />unks, pump anJ genet cations. power u.d eommunicadom lino, and other swcrvrer W Lcilides. The phrau "oil W pu'", u uW N des law, shall embrca W hyvocubou, u wed
<br />+s olrtr sxbsun:u plWuud NuewiN. TIe said land indudW in Nis lust is sirvawl in Nc County of We I r1
<br />Su:: ~!_ CO lOTadO ,and is duaibcd n followL w-wd:
<br />Township 1 North, Range 67 (lest, 6th P.M.
<br />Section 36: All of SE1/4 EXCEFT TRACTS II,
<br />Boot: 1016, page 286 land (600' x 206') a parcel. in the SF. corner of
<br />Section 36-(2.84 acres, more or less), Rook 1516, pace 194 lands
<br />(225' x 3001) a parcel in approximatley the Northwest corner of ~Idl/4~F.1/4
<br />of said Section 36-(1.55 acres, more or less): and Book 613 ll 163465P. Land
<br />' (206' x 247.50') a parcel ad,)oininp, Book 1016 page 28G, lands on the I'es[-
<br />(.1.17 acres, more or less)
<br />inc4Cing ail oil and ps underlying lakes, streams, roads, asemenu aW rigbua(-way which Intone or adjoin aid IW; W ircluding dl IWs orrcf or dainrl b/ Lessor u a pn a( any
<br />Out above JescribW; and <onuining _ 1 1 F n sae of land, rtbre or tut, hcrtby Rlwinp W wajrin{ VI rigAU artier W by rinuc a( tM home cad
<br />cmmpdon laws of Nu tau. Thin lust shall erner all Uu lnumal In said 4nd now owned by or hertalur rood in l<swr. For Ur putpou of Wculatu+g cry pryrncnu b+sed oo urcagc,
<br />Lasso, aI Lcru i option, nay act u If aid IW and Ica coudrvwt puult conuin Ns scrape above tulW, wMNcr spry actually mnuin obrt or lea. Lowe nvy Injat w+ur, gu or other
<br />subsunus inb cry wne or tVarvm underlying Wd land and nw produeYre of (rah wsur.
<br />y. $ub~CCl 10 NC ONLr rwl:imm hClCin COn']inW, Nlr IaK {hall lCrrYip N (pre fof 1 rW of ~.tWO (2 )
<br />1 P pc ' Yen from Ur dau L<nof, W ld "primary unn",
<br />anJ w tart{ Nuulur a oil or pu Is prWucW from uiJ land hc«uWcr or Lesw< is cngagW N dr;llin{ or Rworkin{ apenoom on cad IW hereurder a Main prwiJc.1.
<br />7. Rvya!Yct to be paid l<twr ue: (Q on oil, one<ighN (Vg) of NaI prWucW and aarW Gom aid land, b be delivercl a Um wel4 or b UK crWil o! I<rwr Nm sM pipe lase b which
<br />:Ee wells nay Ls cormuud. testa may from lime W lime purchaaa any ro~alry oil, Paying Iherrlor the nurkcl nluc In Ne fold wAcra prWucW on Ur day Is la rvn b UK pipe lire ar uongc
<br />uN:.s; (b) an pas, including cuinphud gas or olhcf getout rvbsunccs, PtoducW from uiJ land and told or usW off U,e pnmiwr, Ne market riluc a1 the well of orc<ighN (V{) of the
<br />pu so wIJ or usW, prwidW Na: on pr wIJ al Use we!I she royahy shall be one<ighN (Uq al U,c amount rduad from wch Wu; (q on other wbwncu prWuud wiN o0 or gu, W
<br />cosaW VY i~Iis lase, or~esiphN (Ug) of Nev slue al she well. If al any tlrne oU and/or gu from a well apable of prWucing aJ ard/or gu u rot temp w10 or uw1 e(( the prtsasiw, W
<br />Nis Iwo is naI being oNerwise mainulnW U full fora and effect, Luce UWI py or under b Lewr, u royalty, Ne wm of Orc Dolfu (k1J10) per sue pu yea oo ttr a<ruge Urn t<Id
<br />b/ Les:u hereunder, Ne sett such piymem or under b be nude on ar before Ne armiverury daK a(Nis Iwo nut are airy also Use upindan o! 90 days afar Use du such well V NuI
<br />in and :ubscquem prymenu or tendon b De wde on cr tcfore Ne amdrenary dau of Nis Iwo; pro+idW, however, UYI if of or gu from arty wch well V aL1 mr anti ol( the pRmuea
<br />F<(ore Ne a{pliable arudraury dau of Ibis luu (era, If such well is agalm abut b bNon such dau), or U oo such due Ihia 1,.. 4 bring '^~~^^~ -" b fora W rlfaa ashu Ihao b/ reaaoo
<br />cf such shut in xell, Lcasu shW rot be obtigaud b pny or under, on or bdort Thal pudcuLr annircrury ZK, aid tam u shut b t~'alry. U wch prysssw or undo la~tdadc,V v11 b<
<br />considerW that oil and/or pu, u appliuble, is bring produced within UIe rncudng of Nia lose. During wch time, Isucc wy nmovc Uu pooping mnll, rWt, Nbir+g pisd whet a{uiplpau
<br />irons U.e wc!1 or wells for caw elsewhere in Lutu't bwin:s4 eouisuct with all appliuble laws. rvlu W reguladmm. Lwu may uu, !ru d rvyalry, oil, gu W w+ua prodwwl Irvp aj;l
<br />lard by Lessu (or all openlions henundcr. '
<br />i. This is a PAID-UP LEASE. In <onsiden:ion of Ne ash payment MrtwiN, 4swr egret Nat L<asu dull not be oDligaud, uccpt a olhcrw iw provided Mrein, m wmrncoce a,c9cainui.
<br />any openliom during Nc primary arm. l.esee nay a any tune or timer during or afar Use Primary arm sur«nhr This Iwo u b all or any poniom d caw lad W u b arty slnu nr'
<br />unwm by Lcliveing m 4twr car by sling of ruord a « law or nluwa, W be rdiaW of W oblipdon UscrWUr accrving u b Use wru{a mrrtWerW. ~ _ - .
<br />5. I(, at she upintion of Ne prirtury Knn or thin lose, oU or gar is nut bclnp proJucW on Ne leased prtndwa or on scrape poo1W Ne«wiN buI Luxe U Jun en{agW in Jri:limp; eomplctinp
<br />or reworking oper.Iions Ncrwn, Ncn Nit Iese shall continue in (o«< w long u opandou us being continuoudy prowcutW on tM IwW prtmiw or om acRage puo1W thuewiN; W
<br />a;.cntions shall be <ansidcrW b be eonlinuously prosuuud i(r,dt more Usan ninety (90) days shall elapu tenon Jc completion or abardarvrcnt a(arc wall W sM Oc{iruing of opendom
<br />Wr Nc JrJhng a! a wbsequem well. If afar disorery of oil or pr on aid land or on arts{c poolW NerwiN, Nr praduaion thaw( should raw fwm any ouu slur she primary arm,
<br />Nn lust stall nos unmmu it testa commencer addiliorul drilling or reworking opendom within ninety (90) days from data d ovation of prolucdon or from du of completion of dry
<br />note. If ail or {ar rhall be discwcrW and prsaducW u a rcrult of ruck opcntions aI or slur Ur upintion N Nc prinury arm of Uus law, Nit I,... shJl continua in fora w long u oil
<br />or pa is prWucW from Ne IwW premise or a:uge poo1W NerewiN.
<br />Q Lcus shall pay for or Rpair dcmgu eased by L<nu i opcmiom b {twiny trope. buildings, irriplion diuhn. cul.eru anJ lcrcu. U rcquurW M I<awr. terse will bury DIDe
<br />liner below ordinary plow dcpN when cnssing eulJnsW land. No well aAall be dri11W wlNln Iwo hYWrW (g(q) (cat al any ruidanu or Dun now on Wd IW wiNwt dw wucw d Luwr.
<br />Lessu shall lure Ne right c any time b remove all Luts's property W fiarvru, Including Ne right b dnw W rtmwa all wing. No dcGult d tests MRUWer wiN raper b any well
<br />or portion or aid IoW mall Impair l.esui r rigAU wIN rupsa b any other wee or portion of Wd Wd.
<br />7. The righu of l,ewr and Leru hereunder may ba usigrcd In whole or H pan. No change In owrcnNp a( I<swfa buret (b/ utigMw11 or oJ<niw) NJI b< biWinp oo l.caacc
<br />emit Lcssu bar born IurNrhW wIN noU<c, confining of cersifiW topic of all reeoAcd bawnrau or documcnu W oNer b(omuUOn maca+s+rY b uublials a <omplua drab of record
<br />slue from Lesror, and Ncn oNy wiN napul b paymcnu Nertaficr made. No other kIW W node, wMlhcr sent or wmuuctive, rhJl be binding on 1,.. _, WWas mq wndww b
<br />make prymcnu pruirely u 1(no change haJ aecunW. No pnwm or futon dlvldom or Luwr'r ownership u b dilfcnnt poruom w panels d raW lad shall openu b aNuge dse oDli{aUOru
<br />or diminiM Ne righu of Lessee, and Leslie i openderu may Da wnducW widqut «gard b arty such dir(sion, If all or any Pan a(Uu Leslie i inner Mnursdar shall be usi{rcd, ro Ieawauld
<br />o«na sh>JI t< liable (or any cal or amution of any oNCr lwehold owacr.
<br />g. Whcnercr, u a rwll of any uuu beyond Leuu'uonuol (m<h u fin. OoW, adverse fold or weaJser eordiliom, winNmrm or other M dGov); law, order or n{elation d any govammcm
<br />cal apenq~; or inability b ruurc man, rruurial or wuponation), Leta la prtrcnud from complying wiN any provision o! Nia lase, Lucca shall na Dc lubk for damage or (orfcirvrt
<br />of Nu lure, In whole or in pan, W Lesu's eoligadou hereunder aNll b< wtpeWW to long a ouch eauu penisu.
<br />9. Lessu may at any time or lima pool or unitiu Nis Iea« and Ne lands ewerW hertby, N whole or N pan, Jr u b any suarvm or thee, wiN olAcr 4nir W laws in tM came («IJ,
<br />w as b connil~iu a uni: or uniu, wh<ncvcr, In Lestu i judgement, rcquirW b promou or encounge Ne comcmtion o! wluW nmurci b/ fwiliuUng an orderly or uniform well spacing
<br />paiurn; a cycling, pnnuremainurunee, rc•p«uuring or suondary ruovery Program; or any eoopendre or uNt plan o! dcrclopmenl or oPcndon approval by Ne pccnsary o! Use Inurior
<br />c(Nc I1nI1W Suus. Thc tie of any such unit may be Incrcaud by Including scrape bclievW b bs prWucdvc, W dsreascl bl exludbg KIe{e bclicscd b De unprodunivc, or the awnn
<br />of whi:h Gil car rc(uu bjoin Nc unit, hul any incrw<or durwe in L.uwi t myalUu ruulUng from any wch change b any such ufJl stall rsa De ruroacUw. Any such wd1 mry be uublislsW,
<br />er.!arpeJ, or d'urwUshW, and, ir. she abxn<e o(producdon Therefrom, may be aboDshW W ditbl'rW, by fdb{ far neord a decluatioo o(pooDng or sWliratimm ducriDbg Ne I. M1r. W furma-
<br />tiem w poolW or unltiud. Drilling or reworkng opendom ufno or production d mil or gu from any pea of wch attic ahW be wad W wuLderW, W W purpoua of Nia law, u ruN
<br />opcruioru upon or wch prWuction from shin Iwo. Lwu alas Wouu b Use pordoo of she Iran Irc1udW b any such uNt • frwUorW pu: N W pruLscsion from soy pea sal such utis,
<br />on One of Nc following bate: (Q Ne ndo betwun the puticipaUrtg acruge b ILIa law IrlcludW b wch unit W she IoW of W panicipat{n{ aretgc lalWaf b Wnh emir; a (b) Us nsio
<br />Ceswun N: quantity of ruwenble praducdon underlying Uw portion of Ihit law Irc1uJW b wch unit W Use mW of W tacwerabla pruducdom underlying ouch unit; or (c) cry what buu
<br />appro+W b, Suu mr FWcN aushor{du taring juriWkdoo UarW(. Upmm prWucUon from any pan of wch coil, Luwr MRin Dull D< cuidW b tk rorelricr prv.idoJ b shin Inc on u<
<br />:ncsieral pus of Nc unll praducdon w al!warW b Nit portion of Wa Ina Included b ouch unit, W ro more.
<br />10. I<swr wa.s+nu aW agrw b defend Nc We b uIJ IanJ. The myalUu Mrcin above prwidW art deurminW wiN rupst b Use enti« mircW uuu b oil W {u W if Leaver wm
<br />a I<swr inures, Ne rgalliu b be paid Lessor shall be redueW proponionauly. Leave aI lu option may puchau or diwhuge b whole or b pan any tu, nwnpgc or otMr lien upon aid
<br />IacJ, or Ircy redeem Ne came from any purchawr at any ua We mr adjudiullon, W shall b< wbrogaud b Ne righu of U,e holder Usereof.
<br />~. .aria. < _ ~ _ _ __ ._ YI::-i„~-
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