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AR?zL5156 B 13. REC 02265158 10/03/91 38 $15.00 1/003
<br />F C 4 MARY ANN FEUERSTEIN CLEP~ RECORDER WELD CO, CO
<br />PnJDUCER'S 88-FMcB _ yy + OIL AND GAS LEASE
<br />nid uv PAID UP
<br />Rer. 1986
<br />3,rn.wts.,,
<br />THIS AGREEMENT is nude and cnurtd Into a of Nc_. day of ~~ ~~ A y ~ 1 t. 199 1 q .nd bclw.«n
<br />R r+rnira la~enn,r„ acct ad r.~...ap ciao) ink in hnr cnla anti cAna rata nrnnarfy ___
<br />Q517 ktayna gnarl, af'Fvavn nne,~~nmi n~ R9MQ
<br />hereinaller crllW "Lessor"(wAelher one or more)aM Bataa 011, Inc., 2500 West 29th Street, Greeley, CO 80631
<br />hertirufur WIW "Lessee". NTFNFSS EfH:
<br />I. Lessor, for eM In wnsidention of the sum of Ten and more pG(y~g (j 10.00{' 1
<br />in bud pid, d Ne myalJea Aertin prwidW, aM of Ne a{rtuncnu of Luue henin eonulnW, Acrtq jranu, dcmius, lour and Icu exlusiv<ly once Leswc the land hertirufler deunbW,
<br />(or Ne purpou of Inveuijuinj, uplorinj end drillln{ for, producin j, uvlnj, ukinj, owNn{, uwponin{, tbrinj, handlinj aM ,^•tin j oil and ps, bjrther with JI rt{hu, privile{u cad
<br />usertunY auto) (or L<tsu's operations h[rtunder on old land end on lards In tie came fold, Vuludin j bul not IirNud a Ne fallowin{ ri{hu; b Iry pipe lieu; b build roads; aM b (Oiuwct
<br />uNa, pump end power sutiou, paver end communlutiom Itne, end oNer awcmru end hcilitiu. The phrase "oil aM ju'", u uud N JJS Irau, [full embrace W hydraubou, u well
<br />as other subsunc<s producW therewiN. The old lend Included In Nia Iuse Ir aitualW In Ne Counry of Weld ,
<br />Sate of GOlOradO ,end Is ducribed a follows, to-win
<br />To:::ship 1 '!orth, P.anFa 67 Idest, 5th P.M.
<br />Section 36: All of SE1/4 EXCEFT TRACTS II,
<br />Book 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, page 194 lands
<br />(225' x 300') a parcel in apptoximatley the Northwest corner of ~I!1/4SE1/4
<br />of said Section 36-(1.55 acres, more or less): and Book 613 0 153465P• Land
<br />(206' x 241.50') a parcel adjoining, Book 1016 page 2RG, lands nn rile 1'est-
<br />(1.17 acres, more or less)
<br />See Exhibit "A" attached hereto and by this reference made a part hereof.
<br />includinj all oil aM {at underlyin{ lakes. strums, rows, uumcnu end ri{hoof-wy which Inverse or adjoin aid laid; end includin{ ell 1[nN ovnW or clcimW q (erur u e pn of any
<br />Inct above dexrihW; end eonuinin{ 1 1 6 0 aeru of land, mort or Iw, hertq rclwlnj and walrln{ all ri{his under aM q rutue of tM Aomulud
<br />Gumption law of Nir tote. This Iuu rlWl ewer VI Ne Inurtst In aid 4nd aow owned q or hertafur vuud M L<swr. For Ne purpou d cucularin{ arty prymenu Duel oo urtaje,
<br />Luue, et Luau i option, mry en u If aid lard W lu camJtucnt puula conWn tie carte{e eboe ruled, whether Nry acnully corsairs mort or Icu. fusee mry inject waur, ju or Mer
<br />wuunces trace arty zone or Mnm uMeJylnj old land end rot prMunive of fruA war.
<br />3. Subjut a Ne olhcr prwl;lom hcrtln conuinod, Nls Iuu shall remain N force for a period of tW0 .(2) _ years from Nc daze hcnnf, called "primuy arm",
<br />red ao ionj Gi:ruier u ail or ju it produced from nid laM RertuMes C( i,essu is u~{a{ui In u: ii;inj car rewe:kinj ap_nGON O.l u;,; ;emu ia:cu..;:r a Lac6r p. u. i,.:.:.
<br />). Rgalllu a be pid Lesor art: (a) on oil, oneKijhN (VA) d Nal producW end send from old hM, m be deliverW a the cells or m Ne eredil of Lessor trace the pipe line a which
<br />N< wells troy be corauud. Lessu may from lime a Jrne purtluse any rtryalry oB, pryln j therefor Ne rrurket slue In she Reld when producW on Ne dry it h run b the pipe line or eon{e
<br />arks; (b) on {u, includinj coin{hod {ar or other juwus wbsuncu, produced from old lend end Gold or used oR she prtmiur, Nc market value at Ne wll of one<i{hN (VB) of Ne
<br />jet so old or usW, prwidW tNt on jas cold al the well N< rvyalry shall be oasijhN (UB) of the amount realized from ruch ales; (<) an other aubsunces prWuced wiN oil or ps, and
<br />cwertd q Nis~luu, once) jhN (Vj) of Nc'v slue el N< well. If at arty time oil wd/or {u from < well upble of producin j oil and/or ju is nos heirs{ avid or usW oR the prtmius, and
<br />this Iwe Is not bein{ olherwiu mainulnW N full farce aM dfut, Lester still pry or under m Luxor, as royalry, N< sum of Gne Dollu ({1.00) per ecrt per yw on the urtaje Ncn held
<br />q Lease hertuMCr, Ne tint ruch payment or under b be crude on or befort Ne arulrerury daze of Nis Iuu nut ensuln j oiler tie upin0on of 90 drys afar Ne du such well Is sAul
<br />in and rubsequent paymenu or linden m be nude on or befon Ne arudrenary daze of IIJa Iwe; prwldW, htnvever, slur If oil or {u fmm M' such well Ir wL1 or urod off tie prtmisu
<br />before Ne applicable anniverury Nu of Nls Iuu (even if wch well la spin Mul N bdort wch daze), or.l(on ruch d.u Nit Ina Is bcinj malnnlnW N tone aM e(fat ,pNcr Than q noon
<br />of wcA tAut in well, tease dull rat De ablijalW m pry or under, on or bdort Jut peNCUlu emJrcrury daze, aid sum u shut in mlalry. V such pryment or under h Dude, Y will Dc
<br />considerW that of and/or {u, u applicable, Is belnj prMuud wiNin she munlnj of Nls Iwe. Darin{ ruch lime, Leslie m.y rtmwe flu pumpinj uNl, rods, tuDlnj aM oNcr equipment
<br />from N< weV or wells !or uu elscwhert In Lusu'a buslws, eouisunt wish VI applicable Inn, rvlca and rtjulations. Leslie may uu, {rte of rolalry, oil, ju and war produced fmm aid
<br />land q Lcasu for all opcntlou Acrtusdcr, t
<br />1, TAIL is a PAID-UP LEASE. In eonridention dthe easA pryment herewlN, Lessor <{cur Jut lesue still not b<obli{atM, eacept err otheniu providW henin, to commence or continue
<br />any opcrtsions durlnj Ju primary arm. Lune mry et arty tone or Jmu durinj err afar tie pr4rury arm wnend<r Nis Itu< as m all or any ponion of aid land and u w arty stnu or
<br />rtnmm q deliverin j a 4saor or q filinj of ncoN • rtlure or rtluw, aM be nllcved of W obliption NcrtaBCr accrvlnj u a the ecru jc surstMcred.
<br />3. IL a Nc upinJan of the pHrrury arm d Wa Iuu, oil or pa Is ram beln{ produced on tie ItaaW prtrruua or on acrtaje poolW NcrewiN but Lessu h Ncn enja{W In drillin{, wmplnin{
<br />or rcwarkin{ opentiou thereon, Wen Nir lure dull contnue In forte ro ionj u openJom zee heirs{ wntinuously proucurW on tie lased prtmiur or on ecru{e pool W therewiN; and
<br />operations aiWl be eonslderW a be eontlnuourly proseeutW If nos mart Jun nlnery (90) d.n rhJl elapu between tie completion or abandomncnt of one wll aM Ne Mjlmin{ of operations
<br />for Ne drillln{ of a subrcqucnt well. If e0er discovery d oil or jas on old land or on acru{e poolW NerewiN, Ne prrducJOn Ncreof should cue from any cauu afar Ne primary term,
<br />Nice lust dull not urmlruu If leaue commence additioul drillin{ err rewarkln{ opentlonr wiNln nlnery (90) days !rom uu of eesutlon of production err fmm daze of eompletlon of dry
<br />hole. If oil or {sa aNll be diuoverW and predueW u e rtault of ouch opcnrionr at or afar Ne uplntion of Nc primary arm of Chia Iuu, Nir Iuu dull continue In force u ionj as o,1
<br />or pr is producW from N< IwW prcmias er acru{e poo1W therewiN.
<br />h L<sue still pry for or rcpalr duiw{e uurW q lessee's opentiom m {rowinj crops, buildinjs, Iniption diuhct, culveru u.d fences. 1: rtqucst<d bl l.esar. 4ssu will b+ry PIK
<br />Lnes below ordinary plw depN when croarln{ eulJnsW IoM. No wll NJI be aW11W wlNln two huMrd (300) tut of arty rnidence or Nm now on aid IoM wiNwt Ne eoivent d luwr.
<br />Levu atoll cove Ne ri{At et arty time a nrmve all loco i property and fiamma, Ineludinj Ne ri{ht a draw and rtmwe all win{. Na deuult of I<rsee hcrturdcr wiN rtrpeet a any well
<br />or portion of aid IoM ah.ll Impair Leru<i rijhu rIN rupoct b arty oNcr well or ponlan of aid IoM.
<br />7. The ri jhu of Lutor and Leslie heeunder may be usl{rcd In whole err In pen. No elan{e In ownership d Lour i Inun:t fb/ usi{rmtcnt or nlherwiul still he Alndin{ on le::u
<br />umil lLSru Ns been furrtiJ:W wpJ, euice, e:nulnin{ d eeNficd wpiu o! dl rceoNW Imwm<nu or daemncnu aM oJur Information neuaury a uublish a eompleu duln of rtcord
<br />sine from lector, and Ncn oNy wiN rtrput to prymcnu Ncru(ur made. No Met kind of mtiu, rhether ecmal or comtrvcJve, null Le blMlnj on Lcrscc, and lesaa mry continue to
<br />make paymcnu pruiuly u If no elunje lad ouurrW. No prtuns or futon divlrion d lerur i owncnAip as a diffcrtns ponlonr or prtclr of old IoM dull apenu a eNarye Ne oblijarions
<br />or diminiaA Ju ri jhu d L<aau, and luse~ a opentiou may b<eoMuctad wiNwt rt jard m arty such division. If all or any pen of N< lusu'a inures) heeunder shall be assijnW, no IcauA0ld
<br />owner slWl be )able for eny act or omission of any Mer IweAOld yrncr.
<br />L Whenever, u a retail of cep uuu beyond Lusei r wntrol (such u fin, Rood, adreru field or rather conditions, windstorm or oJ,er Act of Gad; lrw, oNer or rt julatian of any jovernrnen~
<br />cal a{envy; or Vubiliry n auurt men, maurW or uwpoNJon), )cosec la prereotW from tompiyinj wiN an, prvlsian of Ni: Iwe, 4uu shall not D< liable for damaju or lorfcirvrt
<br />of N4 Iuse, In wAOle or N put, and I,na<e'a oblijauou hereunder a1Wl be wpesdW ao ionj u such uuu penlsu.
<br />9. W su may at any Jme or Cirrus pool or unlliu Nit Iuu and Ju IaMs ewertd hertq, In whole or in pn, or u b eny stnmm or stnu, wiN other lands and loos in Ne came fold,
<br />so as b eonsliluu a unit or unto, whenever, In leaaee'a jud{emenl, requirtd m promou or <ncoun je Ju contcrntion of urunl rtwurtcr q 4<iliutin{ N oNerly or uniform wc0 spacin{
<br />patum; a cyelinj, psessuremalnurunce, reprtssurlnj or suortdary recovery projnm; or any <oopentire or unit plan of dcrclopmcnt or operation approved q Nc Surtury of Nc lnurior
<br />d Ne Uniud Suus. The size of any such unit troy be Inereued q Includin{ a<ro je believed m be praduNre, and dcenascd q euludinj ecru{e believed a be unprodaclir[, or tie wncn
<br />of which hit or rtfuu ajoin Ju unit, but any incrtau Or dusease In )clot i myalJe rtadtlnj fmm Ny fach Chanjt bl Ny IYCh aryl Ihall nq be RU01<Jre. Aury Inch Ylllt Try bt cab)))bed,
<br />enlarjW, or dirNnishW, aM, N tie absence d production Nerdrom, mry he ebobshW and disulved, q (din{ for rtcoN • dulandon d poolinj or uNtintion dcuribin{tie IaMr aM (orma-
<br />tioru w poolW or unitized. DNllnj or teworkln j opcnJona upon or production doJ err ju from arty put of wch unit stall be uutW aM wmiderW, br W purpose of this Iuu. u wNi
<br />operuiou upon or wch producion from Nis Iuu. Leaaoe slsaR Wouu m the potion d Nla Iuu includW N any wch uNt a Indaul•pan d W producioo fmm arty pan d ruch unit,
<br />on one of Ne followinj baua: p) tie ratio between the puticipeJnj ecru{e b thla lease Included N such uNt eM N< bW of all pankipatin{ once{e IrscludW N ruch uNt; or (b) JK ratio
<br />between tie quanury of rtcartnble ptodus9oo undulyln{ the potion of Jda Ieaae 4uludW In wch uNt aM the WW of W recrrrtnble productim un]erlyiaj ruch uNt; or (q ary ocher buu
<br />approval q Suu err Federal auVaridu lurlnj JurWictioo Nertof. Upon prMuedan from arty put d web uNl. Lour henin shW be entiJW b the rolaltic provided N Nir Iuu on tM
<br />fnctiorW pn of Ne unit praducJon w ailauted a Jut potion d Jdr Iwe IncludW N rvch urtit, aM no mort. '
<br />IQ Luwr wnanu and a{tees m ddeM sAe JJe a old IoM. The syelJc hcrtln above provldW ert detrmJnW wiN feepect a Ne entire mincN uuu N oil aM ju aM if [e.uor a.u
<br />a leer Inurut, tie toyaltlu to 4 pid lour ahW D< sWuced proponlouuly. luue at lu opJon story purchue or dircAuje N whole or N p.n arry w, monp{e or Mcr lien upon aid
<br />land, or mry rWum N< came from any purthaur at eny as ale or adjudlcatlon, eM mull be aubrojatW a Nc ri{hu of N< holder Ncrtof.
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