|
F.;lr'Y'[7 A1~~Gil'.:t_~;I !F" I 1 1y94
<br />F.liii*I:,Y !0 .~a7..5L.(~T. Haa C ;PoVf. L[[;n4n A°;IL'l.G W. fAIIl
<br />OIL, GAS AND MINERALS LEASE ~~++(Q~~~++
<br />1]JIQ`71111laG[ 554
<br />AGREEMENT made and entered into this t=i, day of rah~,~a rte,
<br />1994, by and between MARCf1ETA NEWHOLt1 of P.O. Box 21, Mancos, CO
<br />81]28, party of the first part, hereinafter called lessor (whether
<br />one or more) and STEPIi EIJ H. kI1J tJEY, party of the second part,
<br />hereinafter called lessee.
<br />WITNESSETH, That the said lessor, for and in consideration of
<br />FIVE HUNDRED FORTY-ONE and 70/100 DOLLARS, cash in hand paid,
<br />receipt of which is hereby acknowledged and of the covenants and
<br />agr~emants hereinafter ccnrained cn tl~e part of lessee to be paid,
<br />kept and performed, has granted, demised, leased and let end by
<br />these presents does grant, demise, lease and let unto the Bald
<br />lessee, for the sole and only purpose of mining and operating for
<br />oil, gas, coal, carbon dioxide, minerals, other hydrocarbons and
<br />including gravel, mineral substances and mineral aggregates,
<br />(hereinafter referred to as oil, gas and minerals), and laying pipe
<br />lines, and building tanks, power stations and structures thereon to
<br />produce, save and take care of said products, all that certain
<br />tract of land situate in the County of Montezuma, State of
<br />Colorado, described as follows, to wit:
<br />AN UNDIVIDED ONE-HALF ItITEREST IN AND TO ANY AND ALL GAS, OIL,
<br />COAL, CARBON DIOXIDE, MINERALS, OTHER HYDROCARBONS AND INCLUDING
<br />GRAVEL, MINERAL SUBSTANCES AND MIIV ERAL AGGREGATES, LYINC IN, ON OR
<br />UlIDER THE FOLLOWING DESCRIBED PROPERTY, TO-l4IT:
<br />A tract of land in the Sti/4 of Section 1, Township 75
<br />North, Range 14 West, t1.M.P.M., being more particularly
<br />described as follows:
<br />Beginning at the SW Corner of Section 1, Township ?5
<br />tlorth, Range 14 hest, H.M.P.14., thence running East 17]7
<br />l.a.-,.::a :;crtl:. ~t iO9S foe::; tlJe r.ce I:cr tl: 22°
<br />East 2G1 feet; thenc e~NOrth 00°45' East 796 feet; thence
<br />North 26°70' East 130 feet; thence North 17°70' East 279
<br />feet; thence North 12° East 559 feet; thence South 89°5B'
<br />West 2004 feet to the 1/4 corner between Sections 1 and
<br />2; thence South 2657 feet to the point of beginning.
<br />containing 108.7] acres, more or less.
<br />It is agreed that this lease shall remain in force for a term
<br />of ten years from this date, and as long thereafter as oil, gas and
<br />minerals, or any of them, is produced from said land by the lessee.
<br />In consideration of the premises the said lessee covenants and
<br />agrees:
<br />1. To deliver to the credit of the lessor, free of cost, in
<br />the pipe line to which the lessee may connect his wells, the equal
<br />one-eighth part of all oil produced and saved from the leased
<br />premises, as royalty, or at lessee's election, to pay the lessor
<br />for such royalty the market price prevailing the day the oil is run
<br />into the pipe line, or in storage tanks. To pay the lessor as
<br />royalty sib percent of ali other minucais auu hydrew rbons which
<br />the lessee produces and saves from said lands.
<br />2. To pay for the gas from each well found upon the said
<br />premises, which shall produce gas in marketable quantities, a
<br />royalty of 12.5 percent of the net proceeds derived from the sale
<br />of such gas, or of the gasoline that such gas may be converted into
<br />and marketed off the premises.
<br />If no well be commenced on said land on or before the 15th day
<br />of December, 1994, this lease shall terminate as to both parties,
<br />unless the lessee on or before that date shall pay or tender to the
<br />lessor the sum of Fifty-five and no/100 Dollars ($55.00), which
<br />shall operate as a rental and cover the privilege of deferring the
<br />Page 1 of 4
<br />00061
<br />
|