HomeMy WebLinkAbout20121342.tiff WESTERN OPERATING COMPANY
518 Seventeenth Street, Suite 200
Denver,Colorado 80202
Phone: (303) 893-2438
Fax: (303)629-5735
March 13, 2012
Board of County Commissioners
County of Weld
915 10th Street
P. O. Box 758
Greeley, CO 80632
Attn: Esther Gesick
Re: Oil and Gas Leases listed on Exhibit A
of the Assignment attached to this letter
Ladies and Gentlemen:
Western Operating Company ("Western"), Assignor, entered into an Agreement with
Marathon Oil Company ("Marathon"), Assignee, wherein Western agreed to assign and
convey unto Marathon, the leases listed on Exhibit A of the Assignment, attached to this
letter.
Under the terms of the leases, you may have the right to consent to the conveyance of
these leases to the Assignees.
Please execute the enclosed copy of this letter to indicate your written approval and
consent to the assignment of the leases.
Please return the executed copy in the envelope enclosed. If you have any questions, I
can be reached at 303-893-2438
Sincerely,
1�.
WEST RN RATING COMPANY
S D. James
esident 2012-1342
Enclosure
oonzc9.tf 7/ 134/6/
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Page Two
The Board of County Commissioners of the
County of Weld approve and consent to the
assignment and conveyance of the attached
leases, at the meeting of the Board of County
Commissioners of the County of Weld, held
on May 30 , 2012.
By:
Name:
Name: Sean P. Conway /
Title: Chair
.�?0%7-/394
eRecorded in Weld County,CO Doc Id:3779619
• 07/13/2011 04:56 P
Page:1 of 6 Total Fee:$36.00
• Steve Moreno, Clerk and Recorder
STATE OF COLORADO
COUNTY OF WELD
ASSIGNMENT
This Assignment (the "Assignment"), dated July 7, 2011, is by and between Western
Operating Company, a Colorado corporation, whose address is 518 17th a #200, Denver,
Colorado 80202("Assignor"),and Marathon Oil Company,an Ohio corporation,whose address
is 5555 San Felipe,Houston,Texas 77056("Assignee"). Capitalized terms used but not defined
herein shall have the respective meanings set forth in that certain Lease Acquisition Agreement
(the"IAA"),dated July 7,2011,by and between Assignor and Assignee.
ARTICLE 1
ASSIGNMENT OF OIL AND GAS INTERESTS AND ASSETS
Section 1.1 Assignment. For Ten Dollars and other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged),Assignor does hereby GRANT,
BARGAIN,SELL,CONVEY,ASSIGN,TRANSFER,SET OVER AND DELIVER to Assignee
all of Assignor's right,title and interest in and to the following(collectively,the"Assets"):
(a) all of Assignor's right,title and interest in and to the Leases described in
Exhibit A(the"Acquired Leasehold");
(b) to the extent assignable,rights in,to and under all agreements relating to
the Acquired IPasrhold, including all leases, permits, rights-of-way, easements, road use
agreements, confidentiality agreements, unit agreements, farmout agreements, farmin
agreements, joint venture agreements, participation agreements, operating agreements,
hydrocarbon sales,purchase,gathering,transportation,treating,marketing,exchange,processing
and fractionating agreements, and licenses, options, orders and decisions of state and federal
regulatory authorities establishing units(collectively,the"Contracts");
(c) rights, obligations and interests in any unit or pooled area in which any
Lease or portion thereof is included,to the extent that these rights,obligations and interests arise
from and are associated with the Acquired Leasehold, including all rights and obligations derived
from any unitization, pooling, operating, communitization or other agreement or from any
declaration or order of any governmental agency(the"Existing Units");
(d) all crude oil,natural gas,casinghead gas, drip gasoline, natural gasoline,
petroleum, natural gas liquids, condensate, products, liquids, other hydrocarbons and other
minerals or materials of every kind and description,that are produced from or attributable to the
Acquired Leasehold or the Existing Units and that are produced after the date hereof;
(e) other tangibles, miscellaneous interests or other assets in Assignor's
possession,or which Assignor has the right to obtain,relating to the Assets,including copies of
all lease files, land files, well files, production and operation records, technical files, cores,
physical samples or materials from wells or tests, division order files, abstracts, title opinions,
regulatory files,health,safety and environmental files,contract files and consultants' studies and
reports regarding any of the foregoing,and all interpretive analyses of the foregoing,insofar as
they are related to the Assets; provided,however, Assignor shall have no obligation to furnish
Marathon with any data or information should furnishing such data or information be prohibited
by third party disclosure restrictions; provided further that, as soon as reasonably practicable
following the Execution Date, Assignor shall be obligated to request from such third party a
waiver of any applicable disclosure restrictions;and
(0 to the extent assignable, all right to indemnities and releases from third
persons relating to the Assets and,to the extent not assignable,the benefit of such indemnities
and releases.
H0003:1269229
eRecorded in Weld County,CO Doc Id:3779619
07/13/2011 04:56 P
Page:2 of 6 Total Fee:$36.00
Steve Moreno, Clerk and Recorder
(g) RESERVING AND EXCEPTING TO ASSIGNOR an overriding
royalty interest in each tract covered by each Lease equal to twenty percent(20.0%)less Existing
Burdens on such tract as of the Effective Date,if such calculation results in a positive number,in
all of the hydrocarbons produced and saved under the terms of the Lease,and any extensions and
renewals thereof obtained within one year after the termination or expiration thereof (the
"Retained Overriding Royalty"). The Retained Overriding Royalty is subject to the following
terms and conditions:
1. "Existing Burdens"means all existing and valid non-cost bearing burdens
in effect as of the Effective Date affecting the Leases including the landowner's or lessor's
royalty,overriding royalties,net profits interests,production payments, and any other charges or
existing non-cost bearing burdens of a similar nature applicable thereto, but excluding the
Retained Overriding Royalty.
2. Proportionate Reduction Clause. If Assignor owns less than 100%of the
leasehold interest under a Lease, or in the event a Lease covers less than the full fee oil gas
mineral estate in any tract covered by the Leases,then the Retained Overriding Royalty shall be
reduced proportionately with respect to Assignor's interest in such Leases or the partial fee oil
and gas mineral interest covered by the I Pose with respect to such tract.
3. Post-Production Costs. The Retained Overriding Royalty shall be free and
clear of all costs of exploring, drilling, development and operation, but shall bear its
proportionate share of: CO post-production costs to the same extent that the landowner's royalty
interest under the applicable lease bears post-production costs pursuant to applicable law,rules
and regulations;and(ii)production and severance taxes.
4. Poolin . Assignee may voluntarily pool, communitize, or unitize the
Retained Overriding Royalty with the Leases and other leases and lands without the consent of
Assignor.
(h) TO HAVE AND TO HOLD the Assets unto Assignee,its successors and
assigns,forever,subject to the terms and conditions of this Assignment.
Section 1.2 Special Warranty. Assignor agrees to warrant and forever defend title to
the Assets, subject to the Permitted Encumbrances, unto Assignee, its successors and assigns,
against all persons claiming or to claim the same or any part thereof, by, through or under
Assignor,but not otherwise.
ARTICLE 2
MISCELLANEOUS
Section 2.1 LAA. This Assignment is delivered pursuant to,and hereby made subject
to,the terms and conditions of the LAA. In the event that any provision of this Assignment
(other than any term defined herein)is construed to conflict with any provision of the LAA,the
provisions of the LAA (other than with respect to terms defined herein) shall be deemed
controlling to the extent of such conflict.
Section 2.2 Successors and Assigns. This Assignment shall bind and inure to the
benefit of Assignor and Assignee and their respective successors and assigns.
Section 2.3 Titles and Captions. All article or section titles or captions in this
Assignment are for convenience only,shall not be deemed part of this Assignment,and shall in
no way define,limit,extend or describe the scope of any provisions hereof. Except to the extent
stated otherwise in this Assignment,references to"Articles"and"Sections" are to Articles and
Sections of this Assignment, and references to "Exhibits" are to Exhibits attached to this
Assignment,which are made a part hereof for all purposes.
Section 2.4 Further Assurances. Assignor and Assignee each agree to take such
further actions and to execute, acknowledge and deliver all such further documents as are
reasonably requested by the other for carrying out the purposes of this Assignment.
HO003'.1269229 2
•
eRecorded in Weld County,CO Doc Id:3779619
07/13/2011 04:56 P
Page:3 of 6 Total Fee:$36.00
Steve Moreno, Clerk and Recorder
Section 2.5 Counterparts. This Assignment may be executed in any number of
counterparts,and by different parties in separate counterparts,and each counterpart hereof shall
be deemed to be an original instrument, but all such counterparts shall constitute but one
instrument.
[Signature Page Follows]
• eRecorded in Weld County,CO Doc Id:3779619
07/13/2011 04:56 P
Page:4 of 6 Total Fee:$36.00
Steve Moreno, Clerk and Recorder
TN WITNESS WHEREOF, the authorized representatives of the parties hereto have
executed this Assignment as of the date first set forth above.
ASSIGNOR:
WESTERN OPE ING COMPANY
By:
Name: •Y� -�
Title: .. ._...re
ASSIGNEE:
MARATHON
OIL COMPANY
By: \p Y , (J2,4
Name: !!! JO"D.Wilcox
Title: Allanwy.m.Fact
• eRecorded in Weld County,CO Doc Id:3779619
07/13/2011 04:56 P
Page:5 of 6 Total Fee:$36.00
Steve Moreno, Clerk and Recorder
ASSIGNOR:
STATE OF Colorado §
ly f COUNTY OF Dotlxr § Af
The foregoing instrument was ack py ged befo a me this 9th day of July, 2011, by
SMJA'A D. mats , the Att [asst £or Western Operating Company, a
Colorado corporation,on behalf of the corporation.
My commission expires: 0thi1.1•
Printn Name:
Notary Public for the State of Clio ,
et County of Dew SA E.
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[SEAL] %tjTAq?� i\
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ASSIGNEE: di`�\ i°UBtA'e'
STATE OF TEXAS § OF COL�PPr
§ My CorralscoExpkes02fl612012
COUNTY OF HARRIS § j�,
JThe foregoing instrument was acknowledged before me this (1 414 of July,2011,by
ON 0. W 411114. , the Attorney-in-Fact for MARATHON OIL COMPANY, an
Ohio corporation,on behalf of the corporation.
My commission expires: 1(11-5114
,
P nt:r Name: 0.N* Z
1- '. -y Pu lic for the State Texas,
*K4'f� Notary AYA AIMS State of A EZ �t County of Y
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My Commission Expires
Octobt lb,2014 [SEAL]
eRecorded in Weld Cou+CO Doc Id:3779619
07/13/2011 04:56P
• Page:6 of 6 Total m
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Esther Gesick
From: mikejshotwell@aol.com
Sent: Wednesday, March 14, 2012 4:15 PM
To: Esther Gesick; mikejshotwell@aol.com
Cc: Bruce Barker
Subject: Re: Mineral Lease-W2, S33, T7N, R60W
Attachments: Restatement& Declaration of the Vivion L Butler Family Trust.pdf
Esther,
Thanks. I believe Western has everything ready to go and will get them to you hopefully this week.
Thanks again,
Mike
Original Message
From: Esther Gesick<egesick@co.weld.co.us>
To: mikejshotwell <mikejshotwell@aol.com>
Cc: Bruce Barker<bbarker@co.weld.co.us>; Esther Gesick <egesick@co.weld.co.us>
Sent: Wed, Mar 14, 2012 3:12 pm
Subject: RE: Mineral Lease-W2, S33, T7N, R60W
No, since technically the actual recorded assignments have already taken place, all of the rental payments are
current, and we're retroactively getting the consent paperwork and fees cleaned up for Commissioner record
purposes. I guess my disclaimer would be that they do so at their own risk, in the event the Board would take
issue with anything, although I suspect that to be very unlikely. I guess for their peace of mind, the quicker
they can get the three letters drafted the better, because it will only take me a week to get the signature
accomplished and returned. I've copied the County Attorney on this in case he thinks otherwise.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O StreetIP.O. Box 758IGreeley, CO 80632
tel: (970) 336-7215 X4226
a
Confidentiality Notice:This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is
addressed and may contain information that is privileged,confidential or otherwise protected from disclosure.If you have received this communication in
error,please immediately notify sender by return e-mail and destroy the communication.Any disclosure,copying,distribution or the taking of any action
concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: mikejshotwell@aol.com imailto:mikeishotwelk&aol.coml
Sent: Wednesday, March 14, 2012 3:06 PM
To: Esther Gesick; mikeishotwellaol.com
Subject: Re: Mineral Lease-W2, S33, T7N, R60W
Esther,
Thank you so much for all your help with this; I did read the lease again, specifically the"Rentals" paragraph and saw the
"life of the lease" language; it was great to get the attorneys opinion on this as well.
I have contacted Westerns office and they are completing the three assignments and will hopefully have them to you this
month.
1
Question - Due you see any issues with Marathon moving forward with their pooling plans while the assignments are
being completed?
Thanks again,
Mike
Original Message
From: Esther Gesick <egesick(a,co.weld.co.us>
To: mikejshotwell <mikeishotwell(c aol.com>
Cc: Bruce Barker<bbarker4co.weld.co.us>; Stephanie Arries <sarries(a)co.weld.co.us>; Brad Yatabe
<bvatabe(a.co.weld.co.us>; Bob <robertrwinklerxxCcilvahoo.com>; Tonya Disney <tdisnev(cr�.co.weld.co.us>
Sent: Mon, Mar 12, 2012 4:11 pm
Subject: RE: Mineral Lease-W2, S33, T7N, R60W
Mike,
Please see the attached response from the County Attorney. Based on his instruction, I think all we need to do and get
the three Assignments(and associated fees)to bring everything up to date and then just continue with the rentals and
production royalties going forward.
As follow-up to our telephone conversation last week, I've provided a written summary of the responses to your questions
below.
Questions-
1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble
Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008). Yes, by document#2010-0393,
page 3, approved 2/22/2010.
2) Besides the 2011 Smith Energy $320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental
Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing
wells? Our records reflect annual rental payments being made from the year of the original lease in 1986 through current
as of 7/26/2011, which is consistent with the terms of the lease as summarized by the County Attorney in the attached e-
mail.
3) Marathon Oil Company (MOC) is purchasing rights from Western Operating; What is necessary for MOC to make
this Assignment right and to have the lease file complete and up-to-date?As discussed, you will be submitting three
retroactive requests for"Consent to Assignment" and the associated $25 per assignment. Upon receipt, I will list them on
the Consent Agenda for Chair signature and attach a copy to the recorded assignments you provided for our files. You
will also be sent a fully executed original for your records.
Thanks for your patience and diligence in getting all of this straightened out! Let me know if you need anything
further.
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O Street]P.O. Box 758IGreeley, CO 80632
tel: (970) 336-7215 X4226
r/`r� .
Confidentiality Notice:This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is
addressed and may contain information that is privileged,confidential or otherwise protected from disclosure.If you have received this communication in
error,please immediately notify sender by return e-mail and destroy the communication.Any disclosure,copying,distribution or the taking of any action
concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: mikeishotwell@aol.com fmailto:mikeishotwellaaol.com]
Sent: Tuesday, March 06, 2012 11:22 AM
To: Esther Gesick; mikeishotwell(r≥aol.com
Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W
2
Hello Esther,
Hope all is well with you. Do you have time to discuss the below questions regarding the Assignment between Western
and Marathon.
Marathon is ready to move forward with the declaration of pooling encompassing the captioned lands and would like to
have all this settled as quickly as possible.
Thank you,
Mike Shotwell
720-837-4969
Original Message
From: mikejshotwell <mikeishotwellaaol.com>
To: egesick<eqesickco.weld.co.us>; mikejshotwell <mikeishotwellaaol.com>
Sent: Wed, Jan 11, 2012 11:09 am
Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W
Good Morning Esther,
Hope this email finds you doing well!
Just checking in to see if you've had time to look into this?
Thanks for the update,
Mike
720-837-4969
Original Message
From: mikejshotwell <mikeishotwellaaol.com>
To: egesick <eoesickeco.weld.co.us>; mikejshotwell <mikeishotwell4aol.com>
Sent: Fri, Jan 6, 2012 5:06 pm
Subject: Fwd: Mineral Lease-W2, S33, T7N, R60W
Hello Esther,
Hope your Holidays were great! Marathon has inquired again about the status of what is needed to bring the
Assignments current for Marathon - I copied an earlier email to you below for reference;
Below are the wells and operators of record off of the COGCC web site for the W2 of Section 33-7N-60W;
WELD WEITZEL#5-33
Operator Effective Date Termination Date
70385 - SMITH ENERGY CORP 1/1/2011
95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011
100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010
72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010
94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008
WELD-WEITZEL#11-33
Operator Effective Date Termination Date
70385 - SMITH ENERGY CORP 1/1/2011
95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011
100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010
3
72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010
94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008
Questions-
1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble
Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008).
2) Besides the 2011 Smith Energy $320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental
Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing
wells?
3) Marathon Oil Company(MOC) is purchasing rights from Western Operating; What is necessary for MOC to make
this Assignment right and to have the lease file complete and up-to-date?
I've attached the Merger Doc and Assignments of record in Weld County for your review.
Thanks for your help with this.
Mike
720-837-4969
Original Message
From: Esther Gesick <eaesickeco.weld.co.us>
To: mikejshotwell <mikejshotwelk aol.com>
Sent: Tue, Dec 6, 2011 1:11 pm
Subject: RE: Mineral Lease -W2, S33, T7N, R60W
Mike,
I received your initial e-mail but have not had time to address this matter. I'll be in touch soon.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O StreetIP.O. Box 758]Greeley, CO 80632
tel: (970) 336-7215 X4226
124 ] 1011
W Fi� .[O UN1Y
u
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended
only for the person or entity to which it is addressed and may contain information that is privileged, confidential
or otherwise protected from disclosure. If you have received this communication in error, please immediately
notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the
taking of any action concerning the contents of this communication or any attachments by anyone other than
the named recipient is strictly prohibited.
From: mikeishotwell(a)aol.com [mailto:mikejshotwell@aol.com]
Sent: Tuesday, December 06, 2011 1:02 PM
To: Esther Gesick; mikeishotwell(rDaol.com
Subject: Fwd: Mineral Lease -W2, S33, T7N, R60W
4
Esther,
Resending this email to ensure you received it.
Thanks for your reply,
Mike
Original Message
From: mikejshotwell <mikeishotwell(cilaol.com>
To: egesick <eaesickaco.weld.co.us>; mikejshotwell <mikeishotwellcWaol.com>
Sent: Thu, Dec 1, 2011 2:47 pm
Subject: Re: Mineral Lease -W2, S33, T7N, R60W
Esther,
Below are the wells and operators of record off of the COGCC web site for the W2 of Section 33-7N-60W;
WELD WEITZEL#5-33
Operator Effective Date Termination Date
70385 - SMITH ENERGY CORP 1/1/2011
95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011
100322 - NOBLE ENERGY INC 3/1/2010 11/30/2010
72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010
94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008
WELD-WEITZEL#11-33
Operator Effective Date Termination Date
70385 - SMITH ENERGY CORP 1/1/2011
95620 - WESTERN OPERATING COMPANY 11/30/2010 1/1/2011
100322 -NOBLE ENERGY INC 3/1/2010 11/30/2010
72085 - PETRO-CANADA RESOURCES (USA) INC 12/2/2008 3/1/2010
94090 - WALSH PRODUCTION INC 1/1/1999 12/2/2008
Questions-
1) In the documents you emailed is a letter dated 2/10/10 from Petro-Canada requesting approval of Assignment to Noble
Energy; was this Assignment approved? (Walsh and Petro-Canada merged in 2008).
2) Besides the 2011 Smith Energy$320 Annual Rental payment, is there proof of the 1987, 1988 and 1989 Annual Rental
Payments being made? Also, why would a Annual Rental payment be made by Smith Energy in 2011 on producing
wells?
3) Marathon Oil Company (MOC) is purchasing rights from Western Operating; What is necessary for MOC to make
this Assignment right and to have the lease file complete and up-to-date?
I've attached the Merger Doc and Assignments of record in Weld County for your review.
Thanks for your help with this.
Mike
720-837-4969
5
Original Message
From: Esther Gesick <eoesickCcilco.weld.co.us>
To: mikejshotwell <mikejshotwellaaol.com>
Cc: Esther Gesick<egesickaco.weld.co.us>
Sent Thu, Dec 1, 2011 1:10 pm
Subject: RE: Mineral Lease -W2, S33, T7N, R60W
Mike,
I do not have any Assignment to Smith Energy. I show a Rental payment of$320.00 from PetroCanada on
4/2/10, a Division Order from Suncor Energy on 2/23/11, another Division Order from Smith Energy on 5/9/11,
and a Rental payment from Smith Energy in the amount of$320.00 made on 7/26/11.
Per the lease terms any Assignments are supposed to obtain prior consent from the Board of Commissioners
and pay a $25.00 fee per lease (similar to the document#2010-0393). If the Assignment has already taken
place, it would be helpful if you sent a copy to update our records, and submit the fee, so we can sign the
consent to document that everything is current, although retroactively.
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O StreetlP.O. Box 7581 Greeley, CO 80632
tel: (970) 336-7215 X4226
'-'`
W f l'0_'COU N'v
u
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended
only for the person or entity to which it is addressed and may contain information that is privileged, confidential
or otherwise protected from disclosure. If you have received this communication in error, please immediately
notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the
taking of any action concerning the contents of this communication or any attachments by anyone other than
the named recipient is strictly prohibited.
From: mikeishotwellaaol.com ]mailto:mikeishotwell@aol.com]
Sent: Thursday, December 01, 2011 11:57 AM
To: Esther Gesick
Subject: Re: Mineral Lease-W2, S33, T7N, R60W
Esther,
Would you happen to have proof of the Annual Rental payments being made and would you say this lease is in good
standing with Weld County with all approved assignments up to the current operator, showing on the COGCC web site as
Smith Energy Corp.?
Thanks for your reply,
Mike
Original Message
From: Esther Gesick<egesick(rilco.weld.co.us>
To: mikejshotwell <mikeishotwell(a).aol.com>
Sent: Wed, Nov 30, 2011 3:25 pm
Subject: Mineral Lease-W2, S33, T7N, R60W
Mike,
6
Please let me know if you need anything further.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
1150 O StreetIP.O. Box 758IGreeley, CO 80632
fel: (970) 336-7215 X4226
li{ 1 'OP
VI E C 0.' O V N TV
uC
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the
person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected
from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and
destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this
communication or any attachments by anyone other than the named recipient is strictly prohibited.
Attached Message
From: Bruce Barker<bbarker rr,co.weld.co.us>
To: Esther Gesick<egesick(iiico.weld.co.us>
Cc: Stephanie Arries<sarries(rilco.weld.co.us>;Brad Yatabe<bvatabe(Mco.weld.co.us>;Bob Choate<bchoate(Mco.weld.co.us>
Subject: Annual Rentals for Oil and Gas Leases
Date_ Mon, 12 Mar 2012 15:06:55-0600
Esther:
You asked about the rentals paid over the years since initial production as to whether they should have
been suspended because of production. The rentals are required to continue even if production occurs.
So, as per Section 1, rentals continue and must be paid annually, and we were correct in taking the $320
per year.
Bruce T. Barker, Esq.
Weld County Attorney
P.O. Box 758
1150 "O" Street
Greeley, CO 80632
(970) 356-4000, ext. 4390
Fax: (970) 352-0242
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