HomeMy WebLinkAbout20132343.tiffRESOLUTION
RE: APPROVE AMENDMENT TO OIL AND GAS LEASE AND AUTHORIZE CHAIR TO
SIGN (SE1/4 SW1/4 AND LOT 2 [OR W1/2 SW1/4], S18, TIN, R66W) - KERR-MCGEE
OIL AND GAS ONSHORE, LP
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, Weld County, Colorado, is the owner of vast acres of mineral lands located
in Weld County, Colorado, and
WHEREAS, on April 11, 1970, a lease was entered into by Lessors, Helmer and
Josephine T. Getz, and Lessee, T. S. Pace, having been recorded in Book 630, Reception
No. 1551645, for 126.08 net mineral acres, more or less, described to -wit:
SE1/4 SW1/4 and Lot 2 (or W1/2 SW1/4) of
Section 18, Township 1 North, Range 66 West of
the 6th P.M., Weld County, Colorado
WHEREAS, pursuant to a Warranty Deed, recorded at Reception No. 02068408, dated
September 5, 1986, Weld County, Colorado, acquired fifty percent (50%) of said mineral
interest, and
WHEREAS, the current lessor, Kerr-McGee Oil and Gas Onshore, LP, has presented
the Board with an Amendment of Oil and Gas Lease to insert a new Section 13.A with terms as
set forth in said amendment, a copy of which is attached hereto, and incorporated herein by
reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Amendment of Oil and Gas Lease be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said amendment.
eC'.' f%rr_ ,fie c ee dOP;
2013-2343
LE0198
OIL AND GAS LEASE - (SE114 SW1/4 AND LOT 2 [W1/2 SW1/4], S18, T1 N, R66W) -
KERR-MCGEE OIL AND GAS ONSHORE, LP
PAGE 2
The above and foregoing Resolution, was,• on motion duly made and seconded, adopted
by the following vote on the 19th day of August, A.D., 2013.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY. COLORADO
ATTEST:
Weld County Clerk to the Board
ounty Attorney
Date of signatureEP 0 4 2013
i ia�Chair
W Garcia,
arbara Kirkmeyer
2013-2343
LE0198
Kerr-McGee Oil & Gas Onshore LP
A wholly owned subsidiary of Anadarko Petroleum Corporation
Kerr/VtGee
August 1, 2013
Weld County
915 10th Street
Greeley, Colorado 80632
Re: Amendment of Oil and Gas Lease ("Amendment")
Dear Sir or Madam:
1099 18th Street
Denver, CO 80202
P.O. Box 173779
Denver, CO 80217-3779
720-929-6000 (main)
As you may know, horizontal drilling activity is on the increase in and around Colorado, and is expanding into
the Greater Wattenberg Area where you are a royalty owner under a lease owned by Kerr-McGee Oil & Gas
Onshore LP ("Kerr-McGee"). Enclosed for your convenience is a copy of the applicable lease.
Your lease was executed in 1970, at a time when the current development of the Greater Wattenberg Area,
particularly with respect to horizontal drilling, was not anticipated. Horizontal drilling essentially means that
an oil or natural gas well is drilled at an angle to the vertical, so the well runs parallel to and in the formation
containing the oil or gas. Production from the resulting well, known as a horizontal hole, is often several times
greater than that from a well drilled vertically into the same formation.
Kerr-McGee is interested in drilling a horizontal well(s) at a location in which, under your lease, you would
receive a royalty interest if the horizontal well is in fact drilled and is productive. However, in order to receive
such royalty, the pooling clause of your lease (paragraph 13) should be updated to specifically take into
account Kerr-McGee's planned operation. This will enable Ken -McGee to combine your lease with others in a
greater pooled area. The Amendment will be the only change needed to your lease to enable Kerr-McGee to
commence its anticipated horizontal drilling operations.
Enclosed you will find the original and one copy of the Amendment for your review and approval. If the
Amendment meets with your approval, please sign your name in the space provided and have your
signature acknowledged by a notary public. Please return the original to my attention in the enclosed
stamped envelope and keep the "Copy" for your records.
If we do not receive your signed Amendment within thirty (30) days of this letter, we will need to file
applications with the Colorado Oil and Gas Conservation Commission ("COGCC") requesting that the
COGCC enter an order under Colorado Revised Statutes 34-60-116 pooling those interests under the lease(s)
not otherwise pooled.
Should you have any questions regarding this matter, please do not hesitate to call me at 720-929-6701. Your
prompt attention to this matter will be greatly appreciated.
Sincerely,
KERR-MCGEE OIL & GAS ONSHORE LP
A wholly owned subsidiary of Anadarko Petroleum Corporation
1As•
Lauren Anderson
Landman
2013-2343
AMENDMENT OF OIL AND GAS LEASE
THIS AMENDMENT ("Amendment"), made and entered into the 1st day of August, 2013 but
effective for all purposes as of April 11, 1970, by and between Weld County, with an address of 915 10th
Street, Greeley, Colorado 80632, and Kerr-McGee Oil & Gas Onshore LP, a Delaware limited partnership
with an address of 1099 18th Street, Suite 1800, Denver, Colorado 80202-1918, the "Parties".
WITNESSETH:
WHEREAS, the Parties, as successors in interests to that certain oil and gas lease dated April 11,
1970, which was entered into by and between Helmer Getz and Josephine T. Getz, husband and wife, as
Lessors, and T. S. Pace, Lessee, covering the following described lands in Weld County, State of
Colorado, to -wit:
Township 1 North, Range 66 West, 6th P.M.
Section 18: SESW & Lot 2 (or W2SW)
Containing 126.08 acres, more or less
Weld County, Colorado
such lease having been recorded in Book 630, Reception No. 1551645 of the records of said County and
State, and is now in full force and effect and is made a part hereof by reference (the "Lease"); and
WHEREAS, the Parties now desire to amend the Lease by inserting section 13A as set forth
below.
NOW, THEREFORE, in consideration of the premises and of the mutual benefits to be derived
herefrom and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby amend the Lease by inserting into the Lease the following Section 13A:
13A. Subject to the limitation set forth below, Lessee, at its option, is hereby given
the right and power at any time to pool or unitize all or any part of the leased premises and
the formations and products under the leased premises with other leases and lands when in
Lessee 's judgment it is necessary or advisable to do so. The pooling and unitization
permitted by this lease shall be limited to spacing units approved or permitted by the
Colorado Oil and Gas Conservation Commission, or any other governmental authority
having jurisdiction, and shall include spacing units designated in an approved application
to drill and units for maintenance of pressure.
The forming of any pooled or unitized area may be accomplished by Lessee
executing and filing of record a declaration of such pooling or unitization, which shall
describe the area pooled or unitized. However, the absence of such a recorded declaration
will not affect the continued validity of this lease or the area pooled or unitized evidenced
by actual operations and/or the payment of royalties on a pooled or unitized basis.
Production, drilling, reworking or any other operations conducted anywhere on a
pooled or unitized area which includes all or part of the leased premises shall be treated as
if it were production, drilling, reworking or other operations under this lease. Lessor shall
receive, on production from the pooled or unitized area, royalties only on the portion of
such production allocated to this lease in the proportion the total number of surface acres
covered by this lease and included in the pooled or unitized area bears to the total number
of surface acres in the pooled or unitized area.
3962264 Pages: 1 of 3
09/09/2013 10:59 RM R Fee:$0.00
Steve Moreno, Clerk and Recorder, Weld County, CO
to PrArKNOTIEVIV iMaikil%K+tAAYI F Ill III
OPo/, &S9S
Lessee has the continuing right to revise any pooled or unitized area formed
hereunder when in Lessee's judgment it is necessary or advisable to do so. Any revision
may be accomplished by Lessee in same manner used to form the pooled or unitized area
being revised and Lessee may file of record a written declaration describing the revised
pooled or unitized area and stating the effective date of revision.
Except as hereby amended, all terms of the Lease shall remain as originally written, or previously
amended.
This Amendment shall be binding upon and inure to the benefit of the Parties hereto, their
successors, personal representatives and assigns.
Executed as of the date first above written.
KERR-MCGEE OIL & GAS ONSHORE LP
STATE OF COLORADO
) ss.
CITY & COUNTY OF DENVER )
By:
3
atthevv T. Miller
Agent and Attorney -in -Fact tV -
The foregoing instrument was acknowledged before me this 1st day of August, 2013, by Matthew
T. Miller, as Agent and Attorney -in -Fact of Kerr-McGee Oil & Gas Onshore LP, a Delaware Limited
Partnership.
WITNESS my hand
My commission ex
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Steve Moreno, Clerk and Recorder, Weld County, CO
VIII Ml�1R;��P�tiI�G'til6'!��'ltLE �FW'�Fhti+�4 �fi1+Yl h II III
Weld County
c C
Name: William F. Garcia
Title: Chair. Board of Weld County Commissioners
AUG 1 9 2013
STATE OF G.Dia12tdo
COUNTY OF axle/d
) ss.
The foregoing instrument was acknowledged before me this /7 -Clay of %IKyi
2013, by &lil:am f. at-alitas Nair Roam? 0i CDuitl'9 of Weld
County. Coiniltissioger -
WITNESS my hand and official seal.
My commission expir
Set v
Zetea
Notary Public
MY COMM. EXP. 0440-2016
3962264 Pages: 3 of 3
09/09/2013 10:59 AM R Fee:$0.00
Steve Moreno, Clerk and Recorder, Weld County, CO
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