HomeMy WebLinkAbout20130201.tiffRESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING SMALL TRACT
OIL AND GAS LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND
AUTHORIZE CHAIR TO SIGN - JORDANCE ENERGY, INC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Jordance Energy, Inc., 3323 South Birtch Street, Denver, Colorado 80222,
has requested that the bidding procedure be waived according to the policy as set forth in the
Weld County Code for parcels less than five acres, on the following described mineral acres:
Lots 5, 43, 53 and 57, Espanola Subdivision,
according to the recorded Plat thereof; The south
23 feet of Lot 10, and north 17 feet of Lot 11,
Replat of Lots 10 and 1, Espanola Subdivision,
according to the recorded Plat thereof; Section 36,
Township 6 North, Range 66 West of the 6th P.M.,
Weld County, Colorado: Beginning at a point
WHEREAS, Jordance Energy, Inc., is offering to lease the above described mineral
acres, containing .54 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Jordance Energy, Inc., in the
amount of TWO HUNDRED SIXTEEN AND NO/100 DOLLARS ($216.00), is acceptable, with
the further terms and conditions being as stated in said Small Tract Oil and Gas Lease, a copy
being attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the request of Jordance Energy, Inc., to waive the bidding
procedure on an Oil and Gas Lease concerning the above described mineral acres, be, and
hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Jordance Energy, Inc., to
lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized
to sign said Small Tract Oil and Gas Lease.
ex; Put , Le et (ori(-3)
2013-0201
LE0314
WAIVE BID PROCEDURE / SMALL TRACT LEASE - JORDANCE ENERGY, INC.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 16th day of January, A.D., 2013.
BOARD OF COUNTY COMMISSIONERS
WELD2CJUNT'Y COLORADO
ATTEST:
Weld County Clerk to the Board
BY:
D
AP
ounty Attorney
Date of signature: tji
a, Chair
cher, Pro-Tem
P. Conway
Freeman
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ara Kirkmf�eyer / T
2013-0201
LE0314
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this day of , 20 , by and
between WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and
through the Board of County Commissioners of the County of Weld, 1150 O Street, P.O. Box 758,
Greeley, CO 80632, hereinafter called Lessor, and:
Jordance Energy, Inc.
3323 South Birch Street
Denver, CO 80222
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of $400.00 per acre, cash in hand
paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter
described, has granted, demised, leased and let, and by these presents does grant, demise, lease and let
exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose
of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil
and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and
erection of structures thereon to produce, save and take care of said products, all that certain tract of land
situated in the County of Weld, State of Colorado, described as follows, to wit:
Section 36 Township 6 North, Range 66 West of the 6th P.M., Weld County, Colorado:
Lots 5, 43, 53, and 57, Espanola Subdivision, according to the recorded Plat thereof; The South 23
feet of Lot 10, and the North 17 feet of Lot 11, Replat of Lots 10 and 11, Espanola Subdivision,
according to the recorded Plat thereof;
County of Weld, State of Colorado
and containing 0.54 acres, more or less.
1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises
or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the
expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
acreage pooled therewith but Lessee is then engaged in drilling or re -working operations thereon, then
this lease shall continue in force so long as operations are being continuously prosecuted on the leased
premises or on acreage pooled therewith; and operations shall be considered to be continuously
prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one
well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
said land or on acreage pooled therewith, the production thereof should cease from any cause after the
primary term, this lease shall not terminate if Lessee commences additional drilling or re -working
operations within ninety (90) days from date of cessation of production or from date of completion of dry
hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is
produced from the leased premises or on acreage pooled therewith.
2. This is a PAID -UP LEASE. In consideration of the down cash payment, Lessor agrees
that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
operations during the primary term. Lessee may at any time or times during or after the primary term
surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
to the acreage surrendered.
3908202 Pages: 1 of 4
02/06/2013 10:02 AM R Fee:$0.00
Steve Moreno. Clerk and Recorder. Weld County. CO
VIII hY i�lUh�+�f�Iftf��lr"�4�� W� County,
LI�YiN 1 II
2013-0201 / e°311j
ig Activity Weld County, CO\Weld County OGL Small Tract.doc
(Revised 1/2012)
•
3. In consideration of the premises the said Lessee covenants and agree to pay Lessor
twenty percent (20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and other
hydrocarbons produced and saved from the leased premises.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or
tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this
lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing
after the expiration of 90 days from the date such well is shut in and thereafter on or before the
anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it
will be considered that gas is being produced within the meaning of this lease.
5. If said Lessor owns less than the entire oil and gas fee simple estate in the above
described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid to
the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee
simple estate.
6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on
said land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth.
8. No well shall be drilled nearer than 200 feet to any occupied building on said premises
without the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures
placed on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee hereunder may be assigned in whole, or in part, upon
payment of a $25.00 fee and written consent of the Board of Weld County Commissioners, such consent
shall not be unreasonably withheld. No change in ownership of Lessor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified
copies of all recorded instruments or documents and other information necessary to establish a complete
chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of
notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of
Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations
or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any
such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or
omission of any other leasehold owner.
11. Lessee, at its option, is hereby given the right and power at any time and from time to
time as a recurring right, either before or after production, as to all or any part of the land described herein
and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to
such other land, lease or leases. Likewise, units previously formed to include formations not producing oil
or gas may be reformed to exclude such non -producing formations. The forming or reforming of any unit
shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
theretofore been completed or upon which operations for drilling have theretofore been commenced.
Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
which includes all or a part of this lease shall be treated as if it were production, drilling or reworking
operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
3908202 Pages: 2 of 4
02/06/2013 10:02 RM R Fee:$0.00
Steve Moreno, Clerk and Recorder, Weld County CO
VIII iIIIIhNMII tiIIINIV'I+, II,t i r#Sh#CLIIV,INl1IIIII
g Activity\Weld County, COW/Veld County OGL Small Tract.doc
(Revised 1/2012)
royalties only on the portion of such production allocated to this lease; such allocation shall be that
proportion of the unit production that the total number of surface acres covered by this lease and included
in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall
have the right to unitize, pool or combine all or any part of the above described lands as to one or more of
the formations thereunder with other lands in the same general area by entering into a cooperative or unit
plan of development or operation approved by any governmental authority and, from time to time, with
like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms,
conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and
provisions of such approved cooperative or unit plan of development or operation and, particularly, all
drilling and development requirements of this lease, express or implied, shall be satisfied by compliance
with the drilling and development requirements of such plan or agreement, and this lease shall not
terminate or expire during the life or such plan or agreement. In the event that said above described
lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of
development or operation whereby the production therefrom is allocated to different portions of the land
covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of
computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the
particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments
to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall
formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by
Lessee and approved by any governmental agency by executing the same upon request of Lessee.
12. All express or implied covenants of this lease shall be subject to all Federal and State
laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor
Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such
failure is the result of, any such law, order, rule or regulation.
13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow
Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at
any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described
lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder
thereof.
14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and
actions, including the defense of such claims or actions, based upon or arising out of damage or injury,
including death, to persons or property caused by or sustained in connection with operations on this
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
regulation.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and
gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
cancel for such failure or default, specifying the same, stating that if within forty-five (45) days from the
date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If
such failure or default is not corrected with forty-five (45) days after the mailing of such notice, and if
Lessee does not request a hearing on such notice within forty-five (45) days, this lease will terminate
and be canceled by operation of the paragraph without further action by Lessor, or further notice to
Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal
representatives, successors and assigns of Lessor and Lessee.
3908202 Pages: 3 of 4
02/06/2013 10:02 All R Fee:$0.00
Steve Morena. Clerk and Recorder, Weld County,CO
■ui hr VDU IOTI INIC �u :lirNoiiN'i III ill
Y:\706\Espanola Sub\Leasing Adivity\Weld County, CO\Weld County OGL Small Tract.doc
(Revised 1/2012)
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor, such consent shall not be unreasonably
withheld.
18. Neither party shall be responsible for delays or failures in performance resulting from acts
or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion,
power failure, flood, earthquake or other act of God; war, revolution, civil commotion, terrorism, or acts of
public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or
any representative of any such government or legal body; or labor unrest, including without limitation,
strikes, slowdowns, picketing or boycotts. In such event, the party affected shall be excused from such
performance (other than any obligation to pay money) on a day-to-day basis to the extent of such
interference (and the other party shall likewise be excused from performance of its obligations on a day-
to-day basis to the extent such party's obligations relate to the performance so interfered with).
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
ATTEST: %--'\',\
Weld County CIer the Board
By:
STATE OF COLORADO
) ss
COUNTY OF DENVER
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Chair, Bodrti of County Commissioners
JAN 1 6 2013
LESSEE: JORDANCE ENERGY, INC.
By:
A.
Lane M. Jungers, •r-sident
The foregoing instrument was acknowledged before me this 4'" day of January, 2013 by Lane
M. Jungers.
Witness my hand and official seal.
My Commission Expires: NoVimbee /lr, a0/b
3908202 Pages: 4 of 4
02/06/2013 Steve�Moreno, Clerk nRFee:$0.00
and
codr,Weld
County, �1� Co �11
,III FR IAIONliN W41,1'414111fl1'CO III III
ALICIA ROCHELLE BEAL
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20124075212
MY C0IMSSION EXPIRES NOVEMBER 16,2016
_n tease G Lei Q
`' ry Public
9C/3-1'- /
Y:\706\Espanola Sub\Leasing Activity\Weld County, CO\Weld County OGL Small Tract.doc
(Revised 1/2012)
LAND ENERGY. INC.
REOFIN/Fp
WELD COUNTY
COMMISS;n r`FiS
1615 California Street, Suite 206, Denver, Colorado 80202
T: 303-825-5263 I F: 303-825-6629 I lane@landenergyinc.com
January 4, 2013
Weld County, Colorado
Attn: Esther Gesick
1150 O St.
P.O. Box 758
Greeley, CO 80632
Re: Oil and Gas Lease covering lands in:
Township 6 North, Range 66 West, 6`h P.M.
Section 36: Lots 5, 43, 53, and 57, Espanola Subdivision, according to the recorded Plat
thereof; The South 40 feet of Lot 10, and the North 17 feet of Lot 11, Replat
of Lots 10 and 11, Espanola Subdivision, according to the recorded Plat
thereof;
County of Weld, State of Colorado
Net Acres:
Gross Acres:
Dear Esther Gesick,
0.537194
0.537194
Please find enclosed for your review:
1. Jordance Energy, Inc. Check #1030 in the amount of $216.00
2. Original executed Oil and Gas Lease
3. Copy of Replat of Lots 10 and 11 for the Espanola Subdivision
4. Copy of Treasurer's Deed recorded at Reception No. 867260
After reviewing, please have the appropriate parties execute the Oil and Gas Lease by signing
where indicated in the presence of a notary public. Once executed, please have the original
document recorded and then returned to Land Energy, Inc. at the address above. Please let us know
if you would prefer for Land Energy, Inc. to cover recording; we would be content to do so. The
additional documents are for your records in support of current title. Please note that in the
Treasurer's Deed, Weld County conveys Lot 32 without reserving the mineral rights and the Replat
of Lots 10 and 11 shows where the original lot line was altered to the current lot line.
If you have any questions at all, please do not hesitate to call Land Energy, Inc. toll free at (800)
873-3054 or at (303) 825-5263. Thank you for your time and consideration in this matter.
l_EO31tf
Sincerely,
JORDANCE ENERGY, INC.
Lane M. Jungers
President
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REPLAT OF
LOCATED IN THE NW I/4, NE I/4, SEC. 36, T6N, R66W, 6th PM., WELD
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DEED FROM COUNTY —The McVey Printery, Greeley, Colo. .
6004075 PAGE465
lKnaui Alt Ili en jig Ul12e$e 3jreient., That Whereas, a Treasurer's Deed was executed on the
8th . day of April , 19_49., conveying the hereinafter described property to Weld County,
a lawfully constituted county of the State of Colorado, and said Treasurer's Deed was duly recorded in Book
1061 at Page 1;92-.. in the records of the County Clerk and Recorder of the county of Weld, State of
Colorado;
AND WHEREAS the County Commissioners of the County of Weld did, (wittrircmintetcttlagecobitcrliteasall
fictuniceirentitechibearferat"to ihuatumactm4saAfxsalxxxatopnblianniamxa6Ca tris a nkeat[tft
wopireartenantortaneataohorataxtcroaranenentaratztrerrawtownerefettizotkoot
nxpanr iognAtarofxotaorda an¢tyKyf i[l) offer such real estate for sale at public
auction (priventztnrat4 on the bth.... day of Inner 9 , 1941., (ettrItrtimeconnixitrlatrate Rtoig1icin
aaixixa) .. .
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AND WHEREAS, Melia..Marilnet , of the County of Well
State of Colorad.o..,/:bid for said property the sum of -Thirty._....._..._.._..-.- .-.DOLLARS
and.RS1�19.Q,.....r.�.,.ti... .CENTS, which bid being the highest and best bid for cash in hand and being more
than one-third of the latest appraisal of the full cash value made by the County Assessor of said property, was ac-
cepted by the Board of County Commissioners of the said County of Weld;
AND WHEREAS, the said Celia Martinez
in full payment of said bid for said property;
NOW THEREFORE, Weld County, by Harvey E. Vlitwer , its Commissioner appointed to
execute this deed being the same person as UarvQy._E. Witwer , the duly qualified County Treasurer of
Weld County, acting upon the. direction of the Board of County Commissioners of Weld County and as County
Treasurer, in executing this deed, for and in consideration of the sum of ...-Thirty ... ..... r_r_,_,-,.,-„ ,-,.,.,, ........ :.,.r.•
DOLLARS and .ztQ/1A0.,_..,.,.......,., CENTS, paid as aforesaid, and by virtue of the statutes in such case made and
provided, by these presents does grant, bargain and sell the following described real estate, to -wit:
has paid .the sum of
Lot Thirty-two (32), Northwest Quarter of the Northeast Quarter (NWINE*): Section Thirty -Six
(36), Township Six (6) North of Range Sixty-six (66), West, Espanola Sub.
situate, lying and being in the County of Weld, State of Colorado, unto the said ..-..-.--orate..Mart Inez
(her) Inn heirs and assigns, without any covenants of warranty whatsoever and subject to all the rights of re-
demption by minors, insane persons or idiots as provided by law.
This deed is made pursuant to resolution of the Board of County Commissioners of Weld County, Colorado,
duly made and entered of record in its proceedings the 6th.. day of January , A. D., 1941.,
appointing : Itarv9y_.l E• Wirer , Commissioner aforesaid, to execute this deed in behalf of Weld County,
and to affix the seal of Weld County, Colorado, conveying said real estate to second party hereto.
it Harvey SIV, Wf'fNE5rS, WHEREOF, I, E. Witwer
, Commissioner appointed to execute this
deed,. `,rbelialf of 'said County and by virtue of the authority contained in the order made by said Board of County
' d:.. -i Commissioners on the ...6th day of January ,'iq,}i, have
hereunto set my hand and affixed the seal of said County this ....lath- day of
January , / 19.4]„ the uses and purposes therein set
f /
;SEAL forth.
STATE OF COLORADO,1
COUNTY or WELD fes.
The foregoing iostrurgent:was acknowledged
by
]iervei fi 1s :J4 merY Commissioner appointed to execute this deed.
I
as
and as Cou
before me this ...24th.. day of
_. SEAL)
is deed,
y Treasurer of Weld County.
January
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