§ 30-11-303 — Oil and gas rights - leases - royalties

(1) Any county acting by
its board of county commissioners may lease any real estate or any interest therein
owned by the county for oil and gas exploration, development, and production
purposes upon such terms and conditions as may be prescribed and contracted by
the board of county commissioners in the exercise of its best judgment, and as such
board deems to be for the best interests of the county.

(2) Any such lease of oil and gas rights shall be for a term not to exceed five
years and as long thereafter as oil or gas is produced and shall provide for a royalty
of not less than twelve and one-half percent of all oil and gas produced, saved, and
marketed, or the equivalent market value thereof, which royalty may be reduced
proportionately under appropriate provision in such lease if the interest of the
county is less than a full interest in the land or oil and gas rights in the land
described in such lease.

(3) When, in the opinion of the board of county commissioners and because
of the size, shape, or current use of any tract of county real estate, the public
interest so requires, any lease of such tract may provide that no drilling shall be
conducted on the land covered thereby, in which case such lease shall be for a term
not to exceed ten years and so long thereafter as the county may share in royalties
payable on account of production of oil or gas from lands adjacent to such tract of
county land so leased.

Legislative History

Source: L. 49: p. 327, � 2. CSA: C. 45, � 25(2). L. 53: p. 218, � 1. CRS 53: � 36-11-2. C.R.S. 1963: � 36-11-2.