Gardner, Colorado – Absolute Auction September 28th, 2012 9:30am MST Pueblo, Colorado Marriot

The Fortune Ranch consists of 10,557 deeded acres plus 6,200 leased acres offered in total or six individual parcels. Four of the parcels will be sold on absolute auction, **NO MINIMUMS – NO RESERVES**. The ranch is located on the eastern slope of the majestic Sangre De Cristo mountain range in the beautiful Huerfano Valley. The ranch features everything from lush irrigated hay meadows to high mountain pastures and alpine forests. According to the Natural Resource Conservation Service (NRCS) the Fortune Ranch can handle approximately 325 to 350 animal units, in an average year, depending on range management and annual precipitation. The Fortune Ranch offers fishing on approximately three miles of the Huerfano River, which runs through the Red Wing and the Higby parcels, and hunting for elk, deer, antelope, bear, and big horn sheep. The Fortune Ranch has magnificent views from most parts of the property, and provides endless opportunities for hiking, horseback riding, four wheeling, snowmobiling, and dirt and mountain biking. There are currently three surface leases in effect for outfitting and cattle grazing.

DATE: Friday, September 28th, 2012 9:30 a.m. MST.

AUCTION LOCATION:
Pueblo Marriott, 110 W. 1st Street Pueblo, CO. (to book a room call 719-296-3088)

LOCATION OF FORTUNE RANCH:
From Pueblo, CO take I-25 south to the northern exit of Walsenburg, CO, then proceed west 25 miles on Hwy 69 to Gardner, CO. From Gardner go west 10 miles on CR 550, then CR 580 to ranch Headquarters. To schedule a private viewing of the ranch please contact: Ted Schaal with Mason & Morse Ranch Co. 303.748.9779.

PARCELS & DESCRIPTIONS:
Parcel # 1 Higby – Selling Absolute No Reserve!

911 deeded acres +/-, of which 450 acres +/- are irrigated, and containing an apple orchard, and 2 +/- miles of the Huerfano River courses through the ranch. The main house has 1-1/2 to 2 foot thick adobe walls, 3 bedrooms, 1.5 baths. The house has been remodeled including a chef’s kitchen with commercial appliances. Water is from a well. There is an employee house (2007) with approx. 1,860 sq. ft., 3 bedrooms, 2 baths. Other improvements include: 30’ x 120’ metal calving barn w/Vet room and 6 stalls, a 50’ x 100’metal machine shop with one half a concrete floor. There is a 12 car metal garage with concrete floor and is insulated. There is a good set of cattle working pens w/ squeeze chute and scales. Several ponds, Alfalfa/ grass meadows, and grass rangeland and trees covering the remaining non-irrigated property.

Minerals: Seller will convey one hundred (100%) of the oil and gas and mineral rights owned by Seller in the Higby Parcel.

Leases: There is an Agricultural Lease that covers the Higby Parcel and the Mosca Parcel. The term is for one year – April 30, 2012 to April 30, 2013. Lease payment is $30,000.00. This lease can be terminated upon sale.

Parcel # 2 Red Wing Headquarters – Selling Absolute No Reserve!
966 Deeded acres, of which 450 acres +/- are irrigated, and 40 BLM acres, 40 State Lease acres. The Huerfano River meanders through the Red Wing portion of the Fortune Ranch for approximately one mile offering some very good fishing. The main house on this parcel is an older 2 story home with 4 bedrooms, 1 bath. There is a domestic water well, older cattle working facility, as well as an older hay barn, loafing sheds and an employee house (2007) with approx. 1,860 sq. ft., 3 bedrooms, 2 baths. The remaining, non-irrigated land is primarily open, grass range land with treed areas along the river.

Minerals: There is an oil and gas lease in place on a portion of the Red Wing parcel. Seller will convey one-half (50%) of all oil and gas rights and one-half (50%) all mineral rights owned by Seller in the Red Wing Parcel.

Leases: There is an Agricultural Lease that covers the Red Wing Parcel. The term is for one year, April 30, 2012 to April 30, 2013. Lease payment is $18,000.00. This lease can be terminated upon sale.

Parcel # 3 Muddy – Selling Absolute No Reserve!
2,920 Deeded acres, 2,600 BLM acres, and 640 State acres. This parcel is located at lower elevation with mostly flat to rolling dryland pasture with some arroyos, open meadows, and areas of Pinion pine.

Minerals: There is an oil and gas lease in place on a portion of the Muddy Parcel. Seller will convey one-half (50%) of all oil and gas rights and one-half (50%) all mineral rights owned by Seller in the Muddy Parcel. Drilling will commence on, or about, September 8, 2012.

Parcel # 4 Mosca – Selling Absolute No Reserve!
5,040 Deeded acres, 720 BLM acres, 640 State acres. The Mosca Parcel has a period house and compound that could be restored to serve as a high mountain cabin for hunting and other recreational activities. The Mosca Parcel is made up of high mountain grass pastures and alpine lands covered with Spruce, Pine, and Aspen trees. The Mosca Parcel borders the National Forest.

Minerals: Seller will convey one hundred percent (100%) of the oil and gas and mineral rights owned by Seller in the Mosca Parcel.

Leases: There is an Agricultural Lease that covers The Higby Parcel and the Mosca Parcel. The term is for one year – April 30, 2012 to April 30, 2013. Lease payment is $30,000. This lease can be terminated upon sale.

SPECIAL NOTE: A preliminary site evaluation was done to determine the potential of minerals including gold, silver, and others. A copy of the evaluation of the findings can be downloaded below.

Parcel # 5 South Huerfano Selling subject to Seller’s Confirmation.
400 Deeded acres. This parcel is made up of high mountain grass pastures and alpine lands covered with Spruce, Pine, and Aspen trees and has a small year – round stream running through a portion of the parcel. The parcel borders the Rio Grande National Forest on the south and the east.

Minerals: Seller will convey one hundred percent (100%) of the oil and gas and mineral rights owned by Seller in the South Huerfano Parcel.

Parcel # 6 Cottonsack – Selling Subject to Seller’s Confirmation
320 Deeded acre and 1,520 BLM acres. This parcel is located at lower elevation, compared to the South Huerfano Parcel and has mostly flat to rolling dryland pasture with some open meadows and dense areas of Pinion pine and great views of the surrounding area.

Minerals: Seller will convey one hundred percent (100%) of the oil and gas and mineral rights owned by Seller in the Cottonsack Parcel.

OVERALL SUMMARY

HUNTING LEASE INFORMATION: The hunting lease is a one year lease (August 30, 2012 to August 30, 2013) income from lease is $30,000.00.

WATER: The ranch holds numerous water rights for irrigation purposes and storage rights in one reservoir. Contact Ted Schaal for more information (303) 748-9779.

RANCH PREVIEWING DATES: Broker and Auction staff will be available September 15, 2012 from 10:30 am to 5:00 pm MST and the day before the auction 10:30 am to 5:00 pm.

TERMS/CONDITIONS:
A 2% Buyer’s Premium will be added to the high bid price to establish the total contract price. 10% of the total contract price will be placed in escrow the day of the auction with the balance being due at closing. A US $10,000.00 Cashier’s Check will be required the day of the auction with the balance of the escrow deposit accepted by personal or company check.

INTERNET BIDDING: Internet bidding will be available by logging into the INTERNET BIDDING PORTAL. You will need to register at least 48 hours prior to auction date. Neither Auction Company, Broker, nor the Seller is responsible in the event of loss of connection by either side.

EXCLUSIONS:
All personal property and equipment. Note: The Equipment will sell at auction September 28th at 4:30PM. Auction Location: Higby Ranch, Parcel #1. Look for signs. A list of equipment is below

TRACTORS/BACKHOE/SWATHERS: J.D. 4320 tractor, cab, PTO, 18.4-38 rubber, 2 remotes, 8,919 hrs; J.D. 4320 tractor, cab, 3pt, PTO, 18.4-38 rubber, 2 remotes,; J.D. 4020 tractor, 3pt, PTO, 2 remotes; Case 580 Super M Extendahoe, 4×4, 5,255 hrs (good cond.); New Holland 1118 swather, 16’ header, 3,590 hrs; New Holland 1118, 14’ header, 3,249 hrs;

EQUIPMENT: Hesston 4655 sq baler; Hesston 855 rd baler; New Holland 425 Hayliner sq baler; Rhino 950 8’ hyd 3 way blade; Speedco 3pt post hole digger; 3pt pto sprayer w/500 gallon tank and 30’ booms; Darf 12 wheel hyd hay rake; 2-New Holland 1037 hay stackers; 2010 Cimarron 10’ rotary mower; Bonanza 24’ full cover stock trailer; portable loading chute; Schafer 12’ offset disk; trailer mounted pto water pump; 1990 Dodge flatbed truck

MISC. ITEMS: Yamaha 400 Big Bear ATV; Husky 3 stack tool box; Porter Cable 7hp 60 gallon air compressor; portable gas air compressor; Lincoln 225 arc welder; J.D. (Scott’s) 20hp 48” riding mower; 2-pallets hay twine; misc. fencing materials; overhead fuel tanks; bunk & rd bale feeders; cattle panels; misc hand tools; 28 joints of 2 7/8 tubing; 2-trailer house frames w/axles (12’ x 60’); etc.

TERMS /CONDITIONS ON EQUIPMENT AUCTION:
A 2% Buyer’s Premium will be added to the high bid price to determine total purchase price. Total amount will be due day of auction in the form of cash, or personal/business check. All equipment will be sold in its “AS IS” condition.

DISCLAIMER:
All information is taken from sources believed reliable; however, no guarantee is being made by Mason & Morse Ranch Company LLC, Lippard Auctioneers, Inc., or the Seller. Buyers should satisfy themselves as to any due diligence and inspections prior to bidding. Financing must be arranged prior to bidding. All parcels sell in their “AS IS CONDITION”.