HomeMy WebLinkAbout20122517.tiff CORRECTED RESOLUTION
(Corrected as to Legal Description)
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 - DIAMOND RESOURCES
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, Diamond Resources, 63 Inverness Drive East, Suite 200, Englewood,
Colorado 80112, 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:
Section 24, Township 8 North, Range 62 West of
the 6th P.M., Weld County, Colorado
WHEREAS, Diamond Resources is offering to lease the above described mineral acres,
containing 2.42 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Diamond Resources in the amount
of ONE THOUSAND EIGHT HUNDRED FIFTEEN AND NO/100 DOLLARS ($1,815.00), 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 Diamond Resources, 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 Diamond Resources 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.
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WAIVE BID PROCEDURE - DIAMOND RESOURCES
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 17th day of September, A.D., 2012.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:y • �.�
4 \Sean P. Co , Chair
Weld County Clerk to the =>"-r. ) C T
18619 (tea
illiam F. Garcia, Pro-Te
BY: . I; !�]" ate, c4, y
Deputy Clerk to the Boar•%(LF-O ' , '"'f 1Di)— / - li,/ ti—
pri.- - Bar Kirkmeyer�
AP D O M: a C
avid E. Long
ounty ttorneyUt.let df-Q
CL.cr1
Douglad Rademacher
Date of signature: /0/9
2012-2517
LE0308
• •
RESOLUTION
RE: APPROVE REQUEST TO AIVE BID PROCEDURE CONCERNING SMALL TRACT
OIL AND GAS LEASE, CCEPT OFFER TO LEASE MINERAL ACRE, AND
AUTHORIZE CHAIR TO SIG -DIAMOND RESOURCES
WHEREAS,the Board of County ommissioners of Weld County;Colorado,pursuant to
Colorado statute and the Weld County ome Rule Charter. is vested with the authority of
administering the affairs of Weld County.C lorado,and
WHEREAS, Diamond Resources. 63 Inverness Drive East, Suite 200, Englewood,
Colorado 80112,has requested that the biddin rocedure be waived according to the policy as
set forth in the Weld County Code for parcels I s than five acres. on the following described
mineral acres:
i.n , ownship 8 Nort Range 62 West of
the 6t .M.,Weld County,Col redo
WHEREAS,Diamond Resources is offenng to I se the above described mineral acres.
containing 2.42 mineral acres,more or less,and
WHEREAS,the Board finds that the lease offer fro Diamond Resources in the amount
of ONE THOUSAND EIGHT HUNDRED FIFTEEN AND O1100 DOLLARS (51,815.00). Is
acceptable, with the further terms and conditions being as ated in said Small Tract.Oil and
Gas Lease,a copy being attached hereto and Incorporated herkin by reference.
\
NOW, THEREFORE, BE IT RESOLVED by the Boart County Commissioners of
Weld County.Colorado,that the request of Diamond Resources,t waive the bidding procedure
on an Oil and Gas Lease conceming the above described minertsl acres. be. and hereby is.
granted.
BE IT FURTHER RESOLVED by the Board that the offer of Diamond Resources to
lease mineral acres,as hereinabove stated,be.and hereby Is,accepte&
y
BE IT FURTHER RESOLVED by the Board that the Chair,be,an hereby is,authorized
to sign said Small Tract Oil and Gas Lease.
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Ic-a-/a LE0308
•
WELD COUNTY OIL AND GAS LEASE
(Small Tract) cc
THIS AGREEMENT, made and entered into this /7 day of S1 irrrbar-; 20 /Z, 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 0 Street, P.O. Box 758,
Greeley, CO 80632, hereinafter called Lessor, and:
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$13.15.00 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:
Tract 5: "A strip of land 20 feet wide adjacent and North of the present highway right-of-way, extending
Westward approximately 5280 feet from the East boundary line of Section 24, to the West boundary line
of said section, Township 8 North, Range 622West of the 6th, P.M., containing 2.42 acres."
Section 24 Township 8 North, Range 62 West of the 6th P.M., Weld County, Colorado:
and containing 2.42 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
8 is 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
-E,N 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
may prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one
m3 well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
a�L said land or on acreage pooled therewith, the production thereof should cease from any cause after the
w a.� primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
°i 8j operations within ninety (90) days from date of cessation of production or from date of completion of dry
wirer-- hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
d,216 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.
army
so 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
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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.
3. In consideration of the premises the said Lessee covenants and agrees 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, shalt 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.
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a3 11. Lessee, at its option, is hereby given the right and power at any time and from time to
v w - time as a recurring right, either before or after production, as to all or any part of the land described herein
u D and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
a 4-8 mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
re�� production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
nE necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to
maY such other land, lease or leases. Likewise, units previously formed to include formations not producing oil
aM mom- or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
co c.) shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
H reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
N o theretofore been completed or upon which operations for drilling have theretofore been commenced.
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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
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.
IN
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
v
. gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
w3 this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
• 9 such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
c v -r mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
en v- cancel for such failure or default, specifying the same, stating that if within thirty (45) days from the date
NEB of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
ma to K failure or default is not corrected with thirty (45) days after the mailing of such notice, and if Lessee does
ay
mm not request a hearing on such notice within thirty (45) days, this lease will terminate and be canceled by
- operation of the paragraph without further action by Lessor, or further notice to Lessee.
..o"k" 16. All of the provisions of this lease shall be binding upon the heirs, personal
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representatives, successors and assigns of Lessor and Lessee.
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 Clerk to the Bo• <I` �► BOARD OF COUNTY COMMISSIONERS
L WELD COUNTY, COLORADO
By: eat V U=4t?�
Deputy Clerk to the :2. -r. '° '� ,, air, Board of County Commissio s
O V,1 SEP 1 7 2
' LESSEE:
Contirnta ce T dc.
By:
c ar
Title: Agent
STATE OF COLORADO
8+. ) ss
COUNTY OF WELD )
°U The foregoing instrument was acknowledged before me this /0 day of
/ r
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e�3-.
u LLvD A Witness my hand and official seal.
rc" II Sal
to
Notary Public` rlGit t
m BRENDA L. SALE
ay)v v My Commission Expires: I '9)'1 C Notary Public
mE2 State of Colorado
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WNW a,v C 0704,2—0257 7
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1 Diamond Resources
Tod G.Maleckar, CPL
Complete Energy Land Services President
maleckar@diamondnd.com
63 Inverness Drive East, Suite 200 • Englewood, CO 80112
720-287-5660 •Fax: 720-287-5666
July 17, 2012
Weld County
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P.O. Box 758 ;
1 150 O Street 171 c rn
Greeley, CO 80632 C) r Pr—
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RE: Paid-up Oil and Gas Lease covering lands in Weld County, Colorado m �2
Township 8 North, Range 62 West of the 6th P.M. 0 Wco
Section 23: Tract 5 w
2.42 Gross Acres 2.42 Net Acres
To Whom It May Concern:
Please find enclosed for your review and execution a Paid-up Oil and Gas Lease and check covering the captioned
lands.
If the enclosed package meets with your approval, please complete the following:
l. SIGNATURE/NOTARY Please sign the Oil and Gas Lease in the presence of a Notary Public. The
individual acknowledgment on the back of the lease has been partially completed.
2. RETURN ORIGINALS Return the signed and notarized Oil and Gas Lease in the enclosed envelope to
Diamond Resources. The copies marked "copy" are for your files.
Should you have any questions or need additional information, please do not hesitate to call me at
720-287-5660. You may also email me at tim(iildiamondnd.com. Prior to being accepted, this offer may be
withdrawn at any time for any reason.
Sincerely,
DIAMOND RESOURCES CO.
Tim Barbre
Agent Landman 2012-2517
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