OTHERAPPROVED

City of Craig Resolution No. 24 (2026) Authorizing Oil and Gas Lease with Carmony Exploration, LLC

City Approves Oil & Gas Lease With Carmony Exploration

$7,647.15; royalty of 15%; potential extension at $75.00 per net mineral acre; shut-in royalty $10.00 per net acreCity of CraigCARMONY EXPLORATION LLCJune 23, 2026

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Description

The City of Craig Council approved an oil and gas lease with Carmony Exploration, LLC for mineral interests benefiting the Museum of Northwest Colorado, providing a $7,647.15 bonus and a 15% royalty over a five-year primary term. The lease includes options for a three-year extension at $75 per net mineral acre and shut-in royalty provisions.

Contract Details

Contract Amount

$7,647.15; royalty of 15%; potential extension at $75.00 per net mineral acre; shut-in royalty $10.00 per net acre

Vendor

CARMONY EXPLORATION LLC

Agency

City of Craig, MO

Contract Type

OTHER

Document Date

June 23, 2026

Contract Term

Primary term of five (5) years from June 23, 2026 with continuation so long as production in paying quantities; option to extend primary term an additional three (3) years by payment of $75.00 per net acre

Renewal Date

2034-06-23

Renewal Info

Lessee has an option to extend the primary five-year term for an additional three (3) years by paying $75.00 per net acre on or before the end of the primary term. Shut-in royalty payments of $10.00 per net acre per year can maintain the lease for up to three years beyond the primary term without production, subject to production requirements thereafter.