The URL can be used to link to this page

Browse Search

Home My WebLink About770316.tiff RESOLUTION RE : ACCEPTANCE OF URANIUM LEASE PROPOSAL FROM POWER RESOURCES CORPORATION ON 17 ,468 .17 ACRES , MORE OR LESS, IN WELD COUNTY, COLORADO. 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, the Department of Engineering Services has informed the Board of County Commissioners of its negotiations with respect to uranium leasing on behalf of the County of Weld, State of Colorado, and WHEREAS, after careful consideration and review of the facts presented, the Board of County Commissioners of Weld County, Colorado has agreed to accept the offer made by Power Resources Corporation dated September 9 , 1977 , for an approximate total acreage of 17, 468. 17, subject to the following conditions : 1. The size of tracts shall be determined by Weld County and a separate lease issued for each tract on a Weld County lease form; 2. Any offer should be contingent upon abstracting and title searches to verify acres and County owner- ship; title verification is at the Lessee' s expense; 3. All payments due Weld County shall be paid by certified or cashier' s checks or cash. No sight drafts will be accepted by Weld County. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado, that the uranium lease proposal submitted by Power Resources Corporation, be, and hereby is , accepted subject to the above-described conditions. The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 19th day of September, A.D. , 1977 . BOARD OF COUNTY COMMISSIONERS W COUNTY, COLORADO ATTEST: z- 471-11‘77/777-7-,2,-/ .. Weld County Clerk and Recorder atpd, Clerk to the B and Deputy Count lerk iL,},J A PR IED AS mn_ FORM: etentr ., ct R jyLD�N O \ County Attorney ECI 'IL Date Presented: October 5, 1977 770310 ,-I H O O O O O 0 0 0 0 0 0 t N S+ • U 0 0 0 0 0 0 0 0 0 0 0 L. G v ri r-1 .3 H H N N N N N N N W 4- .C/}4j y N Z ll . \ Ln 3 u• H 0 0 0 0 ('1 an l in 0 0 0 0 0 In (d N N 'O t - T00000 DI CO 'D CO d t -1 •1 ii ii O (+1 el •-•1Hi -t an �1 N N N H 0 v)- N V f/} ul u-1 ul ul ul ul (A H H H H H ,� .--I r-,H H H 0- </Y 0 W </r or- 0c' U H d ` r031l N '0 O N • (+l 1J N 0 OO O • (`-1 (n .00 CO 000 COU) 1_, N N .O -,.1' -1 N -S N .0 .O CO Ol n W Z 0 el H .O --I 04 N N H H H H rH U P W F-1 H W W Z W U r 0 Cl � ` r iD en an Cu V) 0 • 41 H N 0) 0 O0 o (n an .000000 1/40 0 6 O P N N 'O d -S N -.1 N .D .0 lO l0 en (+l H .0 -4 en N to H H H en W U- 6 H a (I U w d d I- 43 AAa wz Z H ill a .o H u NI U O a H al H W U U Pad el HI H N H H G4 O) H W an U I v I o U ro U 6 N d • 0• JJ 0 en H 0 0 r- H oA a 0' 0 - N 4J JJ JJ -r1 4-I r -4- in En o 0 m • I 3 3 3 m 3 N COW 1J 0 ,-I H 0 0 " O O N lD . H .D 00 N N rN 0 Cl co 01 N W 0 .-. . P 00 a() 00 •H a)P a(pp un - o E 0S a+ w�' 4-i 6 w' H C'W GO v Z „r \`r 3 H W Z a u Z!' ..k* 3!3' 3F3? .n3 CZ cn .C -C6 .c O riw .rw zz y ., 4-1 J.J 0) 4J rl CO Z CO Z CO I-I H iJ (I SJ ci Zen Zoo Z (n ul W Z •• •• u) r- 0 to H an H N N N a N CO H H N N a o a o o a o o ' a 0 0 0 0 0 0 H •rl •rl •r1 -rI •H .rI .ry -,-I NI +1 •rl •r1 •r1 -ri •r4 •r1 ,.C 4J ,C 4J 4J •.C 4J 1J ,C 1J .J JJ .J 4J JJ JJ CO U (A 0 U ID U 0 4-1 (0 U 0 0 0 0 0 0 VU] 3 V0) (A (n VU) RI . VU) (n (/U) !/l V] (/) H 0 0 0 H 0 a) rl H N U 0 0 0 0 0 0 0 0 0 0 0 0 O 0 O 0 0 0 0 1,) 3-I <4 Lin to in al L1 tt 00 0000 00 0 0000 Ca) • • • . • . . . . . . . a) P. N HI H Hl rl HI HI N N N N N' Hi H H H H H Hz Ird • N to in 0 0 0 0 in y rl el to Ch 0 N N Oa - • cd r t O O i n n O O. 0 0 0 0 0 0 0 O O .Y (+1 O O O 0-. O N H 000n ri 0 0 0 0 (0 0 0 ,.0 -I' N ....t ea CO (0 Y ,0 ,O .O ,O N HI OJ N N W .7 W W N ri H M an 0 rl rI ri Vl HI H d N .Y rI El tD V} <? rI <n- 0)- . al co }+ O• 6U' (n to to to to to to to (n to to ?V .-4to DV r-1 rl ri rl rt rt ri ri ri ri rl O V> V} r an (n Cr) to rl 01 0 to \7 0 O to 01 N N 0 N a) to (n 00 too CO00 .1 (' t 00 0000 0 1000 a/ P N N N N 01 (n rI CO CO N CO N N 0 .O .7 N .' N CO .O Z U rl rl (n (n 0 Cr) Cc) rI 0 ri rl (n (n en in W 0 to .1 0 to ON N N N N • V) a) in M 00 0 (n C'1 00 0000 O 00 .7 M000 O P N N N N .1 C'1 %O co CO N 1/40 N N CO 1/40 .7 N .7 el M W � 1/40 O U r-I .-.4 (n en N Ha el H (n H0 Hrl O < HI en -.1- E-4 E't v 0 c9 g c4 ,G H r. H 00 a) I 0 I M za mp W F ▪0 H HW 3 PO O H H wz w C 1J .., W o co....)e• w a...:C al 1J ..•,") o in Z 1) `-' N P CO W 1 W a) N o ul ON en w 3 w a) a) w - `-' Z (n '0 W r3 o Z 0 ..'F' rn n •D rl in C* .h'Cn ,0 r-. w to 1 en w b w d 0 .k*3 a) al 0 W Fr H 00 C v^co a1 W O P C co r2 A iz3* v (') P C C 00 bp a- (C W as z J• Z ca o .:C�f''W P J) O) f'W W I) C F' yW .WC ya F' orr�� 3 a) 4-' W wza, m � 3m rn (nz3 a) a) ZZ uw N .°awtm CO 0 tn 0 00 .. N o 0 Z .. .. .. N Z •• •• •• ri O (n al Z O r-✓ t\ O r-I 1 al Z •• •• Z •• '•• HI N to I-1 N ,O CO N el an t.7 N N N an an (n a to CO ,0 0 n r-I el N CO ON 01 01 rl I C C C C C C I C C C C C C I C C C C C C C 0. o 0 0 0 0 0 x 0 0 0 0 0 0 0. 0 0 0. o P. 0 0 0 0 (n •rl rl •ri rl rI M rI .1' M rJ r1 -TA •ri rl r1 to r1 rl r1 rl M rl rl M M rl .C L 4J 1J L JJ C 1J L 4.4 11 4-t 4.4 .C L 1J C 1J C ♦J 4J L JJ L CO O U U U U U 4.) al U U U U U U JJ 0 O O 0)�i U (9 0 0 0 0 U (n (n (n (n (n N C CO (n N (n to (n (ua m (n 3 (n (n (n (I)) (01 n F H H O H H H F H c C) CU H U O 0 0 0 0 0 0 0 O 41 U 6 0 0 0 0 0 0 0 0 0 P+ . . • . . P; 0 -CO- C./3- co- or Z CO U 00 a s O 0 0 r-I o00 rZ 00 0 O 0 O 1no in CU N CO W CO N '0 -t N N 4 -t 4i rl CO 1/40 r-I Cl r-1 10 r--I ri O rl F 0r 0r 0r CO- l? or or 01- CU H C C• 6 r-I r i rl r1 ri ri r-I rl O — Cn -CO- 0> 03- PI (0 - 111 d 0 • 4.1 C U 0 0 0 N- 0 0 0 0 0 0 v l O I n CU H 10 N CO CO 10 N 10 'Y N N -7 -1 2. U rl trl r-I Crl r--4 1/40 r'1 r'1 d ri in s O 0 • O 0 O 0 0 � 0 0 0 0 0 0 in 0 In O H 10 N CO CO '.0 N 10 -5 N N 4 4 44 C.1 r1 CO 0 r-I Cr) r4 i l0 rl r C4 d LP .g ..sp n W C/) H H F I 3 I I 1 CII X � a F F F H H CD rS O O El O O ••• N N w 01 C0 4) O 3 3 a 3 3 U k* 3 .�. .moo m .Ho `° N w 000 1/40 00 3 0 Ci1 CO ^ 000 Z W U .zz H O H 0 0 W O N 0 W K UPS N a aK w a w k n cot w v3) 0 PI^Z C' 7 Z 0 az Z N z .cir r z .c \e' .OIS z ..r z rw 41 CO 2; CO 41 Z 3 41 z 41 t/) 40 z CO CU H CU N H CU 1+ CU 4-1 CCI Z 0) 0 n CO 0 z r l CO � .....50) 0 0 Z 01 z CO In I-7 0 N N Cl 1-1 rl ri N N C'1 rl O N I-1 r-1 N H rl H H C C O I C C C I Ch I C I C C a 0 0 o a 0 0 P. 0 a 0 a o 0 1n M r1 M r1 10 r1 •ri •r1 M •rl n M rl a) •rl •rl r1 •C 4f L 4 4 4I ) .C 4J .C 4) .C 41 41 41 0N+ U U U L 0 0 0 C0 U 4) CO U 41 Cn UU Ca S C/1 C/) C/3 CU C/1 C/1 3 Cl) CO V) Cl) a C/) C1) H co H 0 0 H 0 0 H F • F H H H F H H C) CD CD 1`°, y6 CD 0000000000000000000000 G a . ri rl ra ra ra ri ri ri ra c"4 r• � rH rH rH ri r4 r• H ri rH ra r4 r• i D, 0) r4 r4 ri z -Cl- 0 Crl VD N n O O O O In (1 N O N H ✓1 COd H n -t en N 00l Ca ri 0 0 0 0 0 O 0 0 r-1 O 01 .D C1 N O O O O Im mt 0 0 0 O O O �o coo ri W Ca N AD VD N N N N N CO VD 01 01 N 10 N VD N Vl f+1 .t .t VD CO .t N r4 .t .t Cv O el ri r4 en ri O r4 r•1 01 Cl V0 N '0 VD Ill C1 M1 en rl V0 VD VD r1 .t VD C1 Cr) VD CO t1 O v) ft H in a) CO 0+ ri ra "I r-I ri ri ri ri rH H rI ri ri ri ri ri rH H rl ri ri H r-i rI H H H 0) d O if PI 0)- C1 1D N rm. 0 0 VD 0 in T 0l N H Li) W d H I11 -s Cr) 111 N 1-1 N O O O O O 0 O O rl O Ch 1/40 m N O O O O N d 0 0 0 0 0 0 .D O kD mJ U) 1-I N 'D '0 N N OD VD N N N on C1 M N 1/40 N 1/40 N ✓1 01 .t .t VD O] 3 N ri S en Z C) en ri rl Cn ri O rl rl Cl Cn VD N VD Ill (C1 ml C1 V0 10 MD rH .t V0 01 01 '.Dr, Ch ri v) ri C 1 10 N Cm 0 0 0 0 in C n la- N rl ✓1 W d ri C. d en r- H N N OD CO 0) O O O O O Cl O O r i 0 01 V O C 1 N O O O O i d 0 0 0 0 0 0 A 0 o r l O Li CA HO HON C4W en 1/40 N N N 01 C`l C1 N VD N N V1 A0 1 en .t .t VD CO .t N r4 ml- .tMJ HI HI H H O rl rl C1 en �0 N V0 vl C1 v1 Cr1 ri�0 �0 �0 rl .1 .D 01t1 t0 S C.7 ¢ H C+1 hm .. H O -1 CA H H ¢U d W d H H Ei O I i . H w �w a a U) M H M H 3 -VU) Z' a 3 3 en 3 Cr) O 0 v W in en W W i u VD N .Z .-k' n o f F* vies 3 aN en Z U) rml enCO CO MD en pc WC11 W V0 Z 0 1/40 N -T1 CA N N .t N d CA N CO• a Z N C) " 3 qi " N .k* " " " C)) 0Z p Ora a H HH or z enH v3i el �* W 7 N D W k7 �3�' en Z' 4-1 co a) rril 4 1.1 "1 N 4N.1 HI ri .kr HI U H Z o .:C o 'f' ¢ 0 0 m .X°.:f' a -C 0 OH H 3 p" r� ' o Hi al uzmZ3W 0) � a 3aN a a a' v1 Z NN a a ¢ C CnZ ¢ Wad N H fa 1i .. .. .. .. a) 0 .. •<rl I!i 1m CA Orn ri 011 d la- 0\ O ri crl ✓ 2HH CA v; Co a Z a 0\ H r N N N I t\ r N 1 7 u1 n CO Q r r r N N N N N a. o o o o o 0 a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01 rl H +i rl rI r1 HI r1 HI HI HI ri M H M HI M A4 HI r1 HI r1 r1 H r1 ri HI H ri •ri p JJ 11 L 1-) 1-I p 1-1 11 11 11 i) 11 Y L LJ L i.J L 1-1 11 Y 1-1 1-I i 11 11 4J L 1.1 0) 0 0 Cl 0 U U CD U U U U U U U U O D U Cl U 0 U U U 0 U 0 Cl O CCC.)d 3 VOl co en CA CO CCaa 3 C/nl CO Cn V)) C al %1 Can V)) m CA (11 Ell CO1 CC) C/Dn CO CA v0] CO CO CO VI C al n EH-H H F H POW RCO PAWNEE JOINT VENTURE rte•` POWER RESOURCES CORPORATION, OPERATOR 1709 HEATH PARKWAY • FORT COLLINS, COLORADO 80521 • (303) 221-0113 September 30, 1977 Mr. Gilman Olson Weld County Greeley, Colorado Dear Gil: Enclosed herewith, for the approval and execution of Weld County, are ten leases, prepared pursuant to Power Resources Corporation's bid of September 9, 1977, and incorporating amendments according to the letter of Dennis L. Yakobson dated September 28, 1977, a copy of which is attached hereto. A cashier's check in the amount of $56,375.00 is hereby submitted as payment of bonus, as agreed. Please note a discrepancy in the bonus amount as compared with that quoted in the September 9 bid. This, as well as an adjustment of the total acreage figure is the result of my conference of September 29 with Mrs. Keitha Hubbard, Deputy County Clerk, regarding County title in the subject lands. We trust the enclosed meets with the County's approval. Yours very truly, POWER RESOURCES CORPORATION By Ellen B. Mann Landman EBM:dc Enclosures `� POWER RESOURCES CORPORATION . li 0 �..--- 0 Septauber 28, 1977 SFp 4 Mr. Gilman Olsen /10 - / ' Weld County Engineering Department s �like/p /82y P. O. Box 758 eerIn r Greeley, Colorado 80631 46"li vTy parf Dear Gil: ',Grp Per our conversation today I am hereby confirming in writing our offer made verbally at the recent Weld County uranium lease sale of an increase in royalty rate of 0.25% over the State of Colorado royalty schedule now in your current lease for all grades of ore. In addition, per our conversation and my feeling that the County should receive a royalty amount no less than we are offering to other fee mineral owners in the area, an amendment to the ten uranium leases will be submitted to the County Commissioners for their review which will include an alternate royalty provision of 3 1/3% NUEXCO per pound uranium and the greater royalty amount calculated by either method will be due to the County. These two above changes will be provided in writing as an amendment to the basic lease within two weeks. Very truly yours, POWERCO C1)----- 09 Dennis L. Yakobson Vice President - Administration/Land DLY:ljm pc: P. Bosse T. Barrett el Witnessed by;_-_ , dot -? 'r r� Not Public • 1660 South Albion, Suite 827 • Denver, Colorado 80222 • (303) 759-5660 mEmORAnDum y }-a WileTo County Commissioners Date September 14, 1977 COLORADO From Uranium Leases subject: As of this date Weld County has no indication as to the amount of U308 , if any at all , on any of their acreage of mineral properties. I have been negoiating two offers for County owned minerals in the North and East part of Weld County. Power Resources Corporation has made a bid ranging from $ 1 . 00 to $15. 00 per acre bonus , with a delay rental ranging from $1 . 00 to $2. 00 per acre for the total of 18 , 146 .32 acres ± as shown in their bid dated September 9 , 1977 and in green on the attached map . Also to accept our County Lease as drawn up by the County Attorney' s office including advance royalty provisions similar to that currently being implemented by the State of Colorado or other reasonable values authorized by the Weld County Commissioners . An overriding royalty percentage not to exceed two percent . Consolidated Minerals has made a proposal of some changes in the lease form as drawn up by the County Attorney and also other suggestions. Their proposals and suggestions are as follows : 1. Interested in leasing four separate tracts located in T8N,R59W, T8N, R60W, T9N, R60W, and T10N, R61W totaling 4453 ± acres as shown in their bid dated September 2 , 1977 and their revised bid dated September 9 , 1977 also on attached map in purple. 2. Suggests a change in the Overriding Royalty Limitation part of the County Lease and the limit be at least 4%. 3 . If the royalty interest of the County is taxed to the lessees , then the County should consider an appropriate reduction in royalty. 4. Propose the following financial offer; 1. Bonus ranging from $ 2 . 00 to $11. 50 per mineral acre 2. Delay Rental years 1-5 at $1. 50 per acre 3. Advance Royalty Year 6 - $ 10. 00 Year 7 - $ 11 . 00 Memo - Uranium Leases 2 Year 8 - $ 12. 00 Year 9 - $ 13. 00 Year 10- $ 15.00 5. Propose to increase the royalty percentage on a portion of acres , by 1/10 of 1% as shown in the County Lease , and 1/4 of 1% on the balance. Both of the above offers are contingent upon abstracting and title searches to verify the County ' s ownership . After much discussion and research my recommendation to the Weld County Board of County Commissioners would be to accept the Power Resources Corporation ' s bid as submitted, said re- commendation is based on the following : 1 . Sizable difference in the Bonus Offer . 2. The 18146 . 32 acres ±includes most of the County mineral acres in said area while the 4453 acres± includes the apparent heart of the uranium area at this time . 3 . Overriding Royalty limitations should not exceed 2%. 4 . Not feasible for the County to reduce royalty to subsidize lessees severance tax. 5 . The difference in delay rentals is very small . 6 . It is my opinion the difference in advance royalty payments should not bear much weight due to the fact that at the end of 5 years all non-uranium mineral acres will be dropped leaving only advance royalty on anticipated producing acres . 7. Number 8 in the Weld County lease spells out the Royalty Schedule , which is the same as the State of Colorado , and both applicants based their proposals on the said schedule. 8. Averages for the 4453 acres requested by Consolidated Minerals are as follows : Powerco Bonus per acre $ 9. 92 Consolidated Minerals per acre 7 . 29 Powerco Delay Rental per acre 1 . 31 Consolidated Minerals Delay Rental per acre 1 . 50 9 . Total proposed bonus Consolidated Minerals (4454 acres ±) $ 32 ,466 . 00 Powerco (18 , 146. 32 acres -) 58 , 025. 00 Memo-Uranium Leases 3 If lease is granted the following should be required. a. Size of tracts shall be determined by Weld County and a separate lease issued for each tract on a Weld County Lease form. b . Any offer should be contingent upon abstracting and title searches to verify acres and County ownership. c. All payments due Weld County shall be paid by certified or cashier ' s checks or cash. No sight drafts will be accepted by Weld County. Gilman E. Olson mfm Artipir 1. Rng rr, j,I 9 September 1977 5r.P ;! � , ltj J'� VVELD enp• L ;Vl} EnCince,u; Mrs . June Steinmark, Chairperson J Department Weld County Commissioners Centennial Building Greeley, Colorado 80631 Re : Uranium Leases Dear Mrs. Steinmark: Pursuant to conferences with Mr. Gil Olsen of the Weld County Engineer' s office, I am authorized on behalf of Consolidated Minerals to submit the following revised offer. Reference is made to a letter dated September 2 , 1977 from Consolidated Minerals to Mrs. June Steinmark, which letter is incorporated herein. Consolidated Minerals makes the following revised financial offer with regard to tracts 2 and 3 as described in the letter of September 2, 1977 : (1) Bonus : Eleven and 50/100 ($11 . 50) per mineral acre . (2) Delay Rental : Years 1 - 5 of the lease term at One and 50/00 ($1 . 50) per mineral acre . (3) Advanced Royalty : Years 6 - 10 of the lease term. Year 6 - $10. 00 Year 7 - $11. 00 Year 8 - $12. 00 Year 9 - $13. 00 Year 10 - $15. 00 (4) Royalty : I II III Assay Percentage Royalty Percentage Dollar Value Quotient 0. 001 - 0. 075 2. 25% 0. 076 - 0. 15 4 .25% 0. 16 - 0. 20 6.25% 0. 21 - 0.25 8. 25% NUEXCO + ERDA 0 . 26 - higher 10. 25% 2 The Law Building — 1011 11th Avenue — Greeley, Colorado 80631 -- Telephone (303) 356-5400 Mrs . June Steinmark, Chairperson Page Two 9 September 1977 The offer relating to tract 1 and 4 as described in the letter of September 2 , 1977 remains the same . This offer remains contingent upon abstracting and title searches to verify the County' s ownership. Sincerely, CONSOLI ATED MINERALS( yy BY,;>a�1' ' ° ', ARTHUR P. ROY, Agent APR/sc cc : CONSOLIDATED MINERALS \‘,, • DeMAR PERKINS JOHN X. BROWN BOX 248 BOX 1172ah Monticello,Utah 84535 Moab,-259- 697 801.587-2206 8 012 5 9-5 69 7 CONSOLIDATED MINERALS 2 September 1977 Mrs . June Steinmark , Chairman Weld County Commissioners Centennial Building Greeley , Colorado 80631 Re : Uranuim Leases Dear Mrs . Steinmark: Pursuant to the Weld County ' s program for leasing all uranium , vanadium , other fissionable source materials , other spatially associated minerals and all other minerals of every kind and character whatsoever , tog ' with all deposits thereof , except oil , gas , and associated liquid hydro- carbons and coal owned by the County ; Consolidated Minerals submits the following proposal. From a review of a list of properties in which the County owns the min- eral interests presented to us by the County , we would express interest in leasing the following described parcels and propose that said parcels be grouped in tracts as follows , to wit : Tract 1 - Township 8 North , Range 59 West Section 4 : Lot 4 Section 5 : Sl of S'- , NW* and Lot 1 , a part of the SE* NE* Section 6 : S', NE . and SEI NW* Section 8 : S' - Section 13 : SEA NE* Section 21 : Ez Section 30 : NE* and E? SE Tract 1 consists of 1 , 253 acres more or less . Tract 2 - Township 8 North , Range 60 West Section 2 : EL Section 8 : NE-k and E', NWT Section 15 : S- Section 17 : NEn Section 20 : NW* • Section 25 : NW* Tract 2 contains 1 , 360 acres more or less . Mrs . June Steinmark , Chairman Page Two 2 September 1977 Tract 3 - Township 9 North , Range 60 West Section 20 : W - SEA Section 21. : S SWA Section 27 : S Section 30 : SEA Section 31 : NE - and SW Section 34 : SEA Tract 3 contains 1 , 120 acres more or less . Tract 4 - Township 10 North , Range 61 West Section 11 : EA Section 12 : W- NWA Section 25 : 8z N- , and SWA , and SWA SEA Tract 4 contains 720 acres more or less . These descriptions are from the list provided by the County , as afore- mentioned, and are subject to modification if a title search indicates the same . We understand that the County may wantto divide the parcels into different tracts for lease purposes and we are willing to discuss such redivision . We have reviewed a proposed lease form prepared by the County Attorney and would make the following comments and suggestions : (1 ) Paragraph 8 & 11 . ,I4 Overriding Royalty Limitation : We understand that the County is contemplating limiting overriding royalty to two percent (2%) . We would suggest that that limitation, if imposed, be four percent (4%) . Regardless of which limitation , if any , is imposed , we would suggest that the paragraph provide that that limita- - tion be computed on the same basis as the royalty provisions for the County contained in Paragraph 6«) We feel this is desirable because it may become necessary or it may be most fair to offer a royalty interest to the surface owner . (2 ) Severance Taxes : From an initial review of JIB 1076 enacted in the last ses- sion of the General Assembly , it does not appear that the Act contemplates the state being the owner of a mineral interest being severed. The Act does provide that no tax Mrs . June Steinmark , Chairman Page Three 2 September 1977 will be withheld from the State of Colorado by the lessee , whereas it is to be withheld from individuals . If the royalty interest of the County is taxed to the lessees , then the County should consider an appropriate reduction in royalty. Since the tax is 2 . 25% of revenue in excess of $11 , 000 ,000. 00 , this should not result in any sub- stantial diminishing of the royalty but the absence of it would mean the lessee would have to pay the tax on the County ' s interest which , as to the County, is untaxable . We would propose the following financial offer : ( 1 ) Bonus : Two Dollars ($2 . 00) per mineral acre . (2 ) Delay Rental : Years 1 - 5 of the lease term at One and 50/100 Dollars ($1 . 50) per mineral acre . ( 3) Advanced Royalty : Years 6 - 10 of the lease term. Year 6 - $10 . 00 Year 7 - $11 . 00 Year 8 - $12 . 00 Year 9 - $13 . 00 Year 10 - $15 . 00 (4 ) Royalty : I II III Assay Percentage Royalty Percentage Dollar Value Quotient 0 . 001 - 0. 075 2 . 1% 0. 076 - 0 . 15 4 . 1% NUEXCO + ERDA 0 . 16 - 0. 20 6 . 1% 0 . 21 - 0 . 25 8 . 1% 2 0. 26 - higher 10 . 1% This offer is contingent upon abstracting and title searches to verify the County ' s ownership . Sincerely , CONSOLIDATED MINERALS :�t ! /' By JOHN K. BROWN, Partner // LJKB/sc POW RCO PAWNEE JOINT VENTURE POWER RESOURo ES CORPORATION,5 0PERATOR 1709 PARKWAY 221-0113 September 9, 1977 ,,S.- Mr. Gilman Olson - CONFIDENTIAL Weld County Department of Engineering P.O. Box 758 Greeley, Colorado 80631 Re: Uranium Leasing - Weld County Dear Gill: Enclosed is our revised bid which cancels and supersedes our initial bid of August 19, 1977 for the leasing of uranium mineral rights from Weld County. We have broken down the bonus monies, which include the first year rental, by detailed identification. We hope that this additional information will aid in your evaluation of any valid competitive bids. While the negotiation rules for acquisition of county minerals have not been firmly set down by the appropriate county officials, we feel that all bids should be evaluated on a uniform basis. We have reviewed the latest draft of the Weld County uranium mining lease which we received on September 6, 1977, and find it entirely acceptable as written. Since certain pertinent financial data was left open still for negotiation, our total proposal is as follows: (a) Desired lands, bonus monies and delay rentals are set forth on Exhibit A. (b) An overriding royalty percentage not to exceed two percent. (c) Advance minimum royalties similar to that currently being implemented by the State of Colorado for uranium leases or such other reasonable values that may be authorized by the Weld County Commissioners. (d) The proposed production royalty is identical to that adopted by the State of Colorado this past February after detailed review of all economic factors and found to be equitable to all parties involved. Should, however, the County Commissioners wish to reasonably modify the proposed royalty schedule, our offer would still be valid. Mr. Gilman Olson September 9, 1977 Page Two In summary, we feel that it would be most advantageous for Weld County to seriously consider our offer, not only for the near term income that will be realized, but also looking forward to the time when significant revenues will be obtained from production royalties in addition to the required delay rentals. Very truly yours, P SOURCES CORPO T Dennis L. Yakobs Vice President - Administration/Land DLY:dc Attachment HH 0 OO O OOOOO O0000O OO OO F T RI o OO Un ululululul OOOOOO OO OO zm ,J 7-I . • . . • . . • . • . . . . • . . w H 0 T H H H H H H H H H N N N N N N H H r-1 H Q I) C) ) V} 4} 4}U} ill-- VT L}l/}V}-CO- 0)-CO-CO-</}V}CO- V}OD- CO-CO W z O U H O O O CO 1/49 0 0 0 0 0 0 0 0 0 0 O -t CO O O <a N N 1O N H O OO O OOOOOO -.1- CO- W l0d ♦! M M H VD VD VD VD N CO CO 1/40 CO d -T .t V0 N H V} O En- En-a> CO- CO-H H H CO- - Cr) -.t N N N -CO H 0>0>t/} O>V}OD-L}-CO-V} CO N W CO H W < i-) O 2g (nH ul ul Lin ul ul ul a O W cl d' H H H LE) ul u1 it) LC) ul H H H H H H H H H H O W O -. 4} V}C/} f/} </}-CO-In V}LO- V}CO-0>CO-l/}O)- 0>V} CO-CO U W PO CO O H H H W O ON P a O VD H U) H▪ O p a) O O O In M O O O O O O O O O O O M N O O H Lpal P N N H H N N N Ct r0 N ct N VD H IH 't H �' F O W+ .F. C) M M H H HMMN H MNMH H H ‘O O H d H O W H 0X Pi w wo En W Ps 60HCC)) H ' P Q PO H i4 U U W Envi W H zwz en a w w wzw to H Ppi CJI X2 O •rrl 0 2 u ai 14 0 0 aI +J •r91 H u P H 0) W N Fr ul W to N CO W W a) W W — $ U) W +J W m P 3 3 3 z o m H 3 N 3 0 3 O v) B O H W b W X H (-) C+ .o �o ut 0 cn 2 .o Z a. ui O a) a) W W W W W •rl W .-V 2 b0 00 00 H x- \4 00 b0 H b0 W H m0 A�CCa N 0 W o W 0 3 N0N +� NN0 z3 (>~ 2� c3n ain 3 cow wzwzzz � C aZR 4-1M +'� 4 JOO I 0 J •• •• •• H � 4-1 •• •• Iii ymtn 44 •• •• P M P H N P ul V0 CO N M M P N CO H H N N P N rV P ul CO O O O o O O 20 2 0 0 3 0 0 0 0 0 0 Z000000 0 0 0 0 0 300 z 0 0 O O o O o 0 0 0 0 0 0 0 0 0 0 O O O O r- •rI r- •r1 •rl CO •r1 r4 •rl •rl •r1 •r1 CO •H •rl •rl •rl •H •rl W •rl •rl o\ •ri •rl 44 44 4-I 44 IJ 44 L iJ 1J JJ IJ L JJ 44 1J IJ 11 Ll IJ CL U O. o o a. C) U U U U U P, Cl U U O D U P. U U P4 u U H •rl a) •r1 a W •ri W W a) a) W W •rl W W a W W W •r1 W W N •rl W W .C t/) C VI VI ,C VI VI En VI VI V] .C VI VI VI VI VI VI , VI fA . VI VI p p p CC Enq U pp � O 30 30 3W O C O H F H H H H F H a Hr1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 El 1�s c, ca 0 0 0 0 0 0 O O O O O O O O O O O O 0 0 0 F.N Ca-1 S+ • • • • • •. I• ' • • • • • • • • WH HI HI• H HI H1 H I H HI HI H H al ) W r C N N N N N N 41 r-1 V}V} V}-CO-4)- V}CO--C.0-V} V} V} u} HH Q R+ <n- o., t?CO--CO-V}VY V} -CO-41-V} z 0 0 H 0 0 0 0 0 0 in 00 ul u10 0 0 0 d 000 0 0 0 it 0000 00 NI •D 1/40 -0 01- •S 1/40 N CO 0 N CO VD N ,o M L) N N CO 00O d HI H H -t 4) HI M 4} 4T M V}M H HI 0 HI Hat N -t N -CO-CO--CO- a L}LT V} 4} u} V} <n H 4}4}V}-C/)-0)-V} 1N H 4r a) CO LI O C) Vl ul V1 ✓) u1 Lr, H Hi H e-1 HI H Hri H H Hri C 6 U) H HI H H H) U H H }CO- CO-CO-V} 0)-VY VY V} V} V} 4} o � CO-V}VT V}4}V<1} u}V}(/Y 4 I0 -CO 0 0 in N N N CO • ul O O O O M O O D 0 0 ON a) 000000 -1- 00 7 1/40 CV CO 0 N CO •.0 N N co co N HO N ,O Ho HO •O H M M M H HI M 6 M HIM HIH H H r-1 rHI N z H 0 H .\-* I N W CO CO CO 4 en Li Li a CO " CO a) CO 3 N 0 CO 3 3 3 " 0 N 0 H 3 � z H vii CO OUAW W Ca)t" OUA 14 G 3 G� 4' G Xs a Oa 3 q 3 v) 0 CO CO <*N t' C3 Cwti ro .T° CO m i a2 z 3FTZ t' �. �" ) W ) w� 'N taw grEttZV) u" aN C/)) C z3z v w� v m nz � NZZ ZV) a a .. .. .• u y .. ai . G J�-1 O ri n O r1 4t 4-1 •• OH � CO in }a O l-. M N •• ri N if) }a 0 H ri co •r1 )-i N N N M Cr) M NCO N N H HI N O N N Cr) O r H H N O N O H N C Z000000 0 0 0 C 0 ,Z� C 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 H O 0 O O, 0 0 0 0 0 0 O, •rO4 O O an .-I •� H H H H H HI •rl H •rl H •ri H •ri •r1 �.• 1J LJ Li ,I.J L) U 4J U LL JJ L) L) Li Li L) 44 L1 U J-1 U N aUUUUUU nouci en p.. c.) aucc HI 000 •ao •aoo N •ri a) a) a) al a) a) r1 a) a) a! 4 (/) En V) V) C./) V)Li CO CO V) V) V) CLI CI) V) V) ,CCO V) V) V) CO CO CO CO CO .0 V) .C CO CO COCO H 0 00000 0000000000000 0000000 1y 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CliI .J .+ HI HI HI HI H r• 1 HI HI HI H H H HI r-1 H r-1 HI r-I HI H 0) C >, HI C rD C H HI Ul N � Vr yr yr Vr yr yr or yr-co-Vr yr CO-Or CO-CO-CO-yr CO-Vr yr yr-CO-yr yr CO-CO- al 124 CO- H F Z w a H w Z 0 0 H 0 0 0 0 0 0 O 0 0 0 0 0 0 0 H 0 0 0 0 0 H ...-. 0c) 0000 N AD N VD 1/40 N N t 10 N N N t t t H AD N 1/40 N 1/40 I". M t t �O •.O CO t .1 HI M H .-I M H N H H M M 10 N 10 u} ul m ul M H co N.O ‘.O ‘.O H I t Vr O Vr or 0)-Vr Vr V} M Vr OD-U}Vr-CO-Vr U} V)-Vr VI-Vr O)- Vr CO-Vr-CO-CO-Vr F c N CO I+ • uH0 4 I--1 H I-ACO-HI ri r-1 CD H H H I-1 H Ct •1 r-1 -CO- r-i H HI H H HI H O \ VS- V}V CO-Or CO- Vr-CO-VI-KO-OD-CO-OD--CO-U C0--CO-U SO--CO- -CO-<fr Vr-CO-V V}Vr Vr FO Vr N 0 N t Co O 0 0 0 0 0 0 CO 0 0 0 0 0 0 0 r-I 0 0 0 0 0 H -1 0 0 0 0 0 0 N '.O N AD 1/40 N N t AO N N N t t t H ED N 'D N VO N- M t t VO ••O CO t C)6 r-I no H I H M H <Nn H ,H M M '.O N '.O In CO V) M H crs en ‘O1O 1/40 H r 1 t -4 M X4 X H Ill F41 w 0 0 V V N H z En 3 ro H Z N AN XX I CD w w I I w a z w a a .Z l° t r. t o N Z H d a) Co z Cr.) O m w k n n n Fi h' 3 \N 0 m !n H N cn Cn M '.O Cr) bO ri 7w-. Z w H M 3 3 ..W n n " I-1 cn n n AO 1/49 CO M N ,i'1 N N N a t M N 1/40 X '0 3 n O ' a 00 N rilz N H a H H I--I 0 vSi 0 1 z M 00 r-I En tC g c'X.X° co C N VJ N U) H Co C Co CD 3 w w 3 x x .1 cn u H .1 .1 ..{ . . H H k b nz w� zvJz3w a3 .O-1anCaaw% CNZCDzf4 ` a . cnHZ ZZCD a .. c n .. .. .. .. .. .. .. 4-IrnHMt on I-- 00 H O M 14 H H N N N I+ H N M t M 'D N- 00 O\ T I H H H 0 H N N N N N N 4I Z 0 0 O O Z00000 0 0 0 0 Z00000 C C 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 O N1 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9-4 0 0 0 0 0 0 0 0 0 C)v JJ JJ .J .J .J 41 JJ JJ .J 4-1 .J .J ♦J .J L u .J 1J .J .J JJ U 41 JJ JJ W a u a C O O D U a 0 0 0 U 0 O D U O O . U U D. 0 0 0 u 0 u 0 en Ill .0 cn Ccn Cncn aD VJ t 4 cn cn co cn nD cn cn cn cn cn cn cn cf0J .d cn cn cD a cn cn CD -1 En Co 41 Co JJ CO m N 0) g 0 F 0 H H H 0 H ?,m 0000 H m u s 2 H G 7 H H H H AA yr-cr r r Tn. H W O O U H OO r- O N L/1 .O M M 1/4O ,O O �O <t-<n oD-ar . W 0)- ul U N H • U G C HHHH H 0 O ) vT vT</).of p7 VT U r- N M 1- M N N O O ,D O O ,O Y+ N H -s I- 6 'O M CO 'O O H CO H .. Un C) N H U aa 1.4 I 4-i U)) H H 0 OH F7 1J 0 CO W O N H U' M N C N G H H Cl -a: c' ¢ U C .C GJ.J O, O H M •ri N M M M 4J O O o 2 0 0 0 0 U N- •r4 •ri •rI v-I U U J {J CL U U U U tn H N N N 4) Cl) U Cl) U) 1) N U H O H H Hello