HomeMy WebLinkAbout20111194.tiff RESOLUTION
RE: ACTION OF THE BOARD CONCERNING EXTENSION OF OIL AND GAS LEASE
COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - S1/2
NE1/4, PT. N1/2 NE1/4, SE1/4 NW1/4, PT. NE1/4 NW1/4, S6, T8N, R59W
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 is the owner of vast mineral lands located in Weld County,
Colorado, and
WHEREAS, on March 30, 2011, Noble Energy, 1625 Broadway, Suite 2200, Denver,
Colorado 80202, submitted a request to extend the lease of 123.0 net mineral acres, more or less,
described to-wit:
S1/2 NE1/4, south 50 feet of N1/2 NE1/4, SE1/4
NW1/4, west 20 feet and south 50 feet of NE1/4
NW1/4, Section 6, Township 8 North, Range 59 West
of the 6th P.M., Weld County, Colorado, and
WHEREAS, Weld County reviewed the request submitted by Noble Energy, to extend the
lease on the above-described mineral acreage for $37.33 per net mineral acre, for a total sum of
$4,592.00, together with a rental fee of one dollar($1.00) per net mineral acre, which is to run for a
period of six (6) months, commencing at twelve o'clock noon on October 27, 2011, and ending at
twelve o'clock noon on April 27, 2012, and the Board determined it would like to continue the matter
to April 25, 2011, at 9:00 a.m., in order to allow adequate time for the Board to conduct a work
session on the matter, and
WHEREAS, on April 25, 2011, after review, the Board deemed it advisable to continue the
matter to May 16, 2011, at 9:00 a.m., in order to allow Bruce Barker, County Attorney, adequate time
to further discuss the matter with Noble Energy, and
WHEREAS,on May 16, 2011, the Board reviewed the modified request submitted by Noble
Energy, to extend the lease on the above-described mineral acreage for $375.00 per net mineral
acre, for a total sum of$46,248.00, together with a rental fee of one dollar($1.00) per net mineral
acre, which is to run for a period of six (6) months, commencing at twelve o'clock noon on
October 27, 2011, and ending at twelve o'clock noon on April 27, 2012,
WHEREAS, after review, the Board deems it advisable to deny said modified extension
request and direct staff to publish a notice soliciting bids on said parcel following expiration of the
current lease, if not held by production.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the modified request submitted by Noble Energy, to extend the lease on the
above-described mineral acreage be, and hereby is, denied, and staff is directed to publish a notice
soliciting bids on said parcel following expiration of the current lease, if not held by production.
111111111111111111ill/ 111111IIII tin DEMO 2011-1194
3770918 05/27/2011 12:30P Weld County, CO Ce b12 LE0149
1 of 2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder la _\ _\
RE: DENY EXTENSION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED
BY WELD COUNTY, COLORADO-S1/2 NE1/4, PT. N1/2 NE1/4, SE1/4 NW1/4, PT. NE1/4 NW1/4,
S6, T8N, R59W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 16th day of May, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WELD UNTY, COL.RADO
ATTEST:'
0. . a Kirkmeyer. hair
Weld County Clerk to the Boa`186 ? 'ist
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BY:ail au 4' P. Co ay, Pro-Tem
Deputy Clerk to the Board kl 1,\
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AP V F
r_Liavid E. Long
my Attorney , ( ,Qa, vle (42 �
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r Dougla Rademach r
'J/Date of signature: 3/il
11111111111111111 lilt 111111 IIII 1111111 III 11111 IIII lilt
3770918 0512 2011-1194
2 of 2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder LE0149
Esther Gesick
From: Esther Gesick
Sent: Wednesday, May 18, 2011 9:40 AM
To: cmoore@nobleenergyinc.com
Cc: Bruce Barker; Monica Mika; Esther Gesick
Subject: RE: Extension Requests
Curt,
I'm sorry I didn't have a more favorable outcome to report, but thanks for the direction. I'll work on getting the check
issued and send that your way as soon as possible, and then we'll send all of the corresponding paperwork once
everything is signed and recorded. Please let me know if I can be of any further assistance!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
915 10th Street
Greeley, CO 80631
tel: (970)336-7215 X4226
IitI loll
wri��l NTY
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: cmoore@nobleenergyinc.com [mailto:cmoore@nobleenergyinc.com]
Sent: Wednesday, May 18, 2011 9:30 AM
To: Esther Gesick
Subject: RE: Extension Requests
Esther,
Please send the check to my attention at 1625 Broadway, Suite 2200, Denver, CO 80202.
Thanks,
Curt Moore
Land Supervisor
303-228-4062 (Denver)
303-228-4285 (fax)
cmoore@nobleenergyinc.com
From: Esther Gesick<egesick@co.weld.co.us>
To: "cmoore@nobleenergyinc.com"<cmoore@nobleenergyinc.com>
Cc: Bruce Barker<bbarker@co.weld.co.us>,Esther Gesick<egesick@co.weld.co.us>,Barbara Kirkmeyer<bkirkmeyer@co.weld.co.us>,Sean Conway
<sconway@co.weld.co.us>,William Garcia<WGarcia@co.weld.co.us>,Dave Long<dlong@co.weld.co.us>,Douglas Rademacher
<DRademacher@co.weld.co.us>,Monica Mika<mmika@co.weld.co.us>
Date: 05/16/2011 10:43 AM
Subject: RE:Extension Requests
1 aZO//—//q 1
Hello Curt,
I just returned from the Board meeting with the following outcome:
• 1) Accept Request of Noble Energy for Extension of Oil and Gas Lease-Lot 1,55,T8N, R59W
• 2) Accept Request of Noble Energy for Extension of Oil and Gas Lease-SE1/4 NE1/4,SS,T8N, R59W
`a 3) Accept Request of Noble Energy for Extension of Oil and Gas Lease-51/2 51/2 NW1/4,55,TBN, R59W
‘i 4) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2 NE1/4,Pt. N1/2 NE1/4,SE1/4 NW1/4, Pt. NE1/4
NW1/4,$6,T8N, R59W
5) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4$8,T8N, R60W
6) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-E1/2 NW1/4,58,T8N, R60W
N 7) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4,$17,T8N, R60W
N 8) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NW1/4,520,T8N, R60W
• 9) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-SW1/4,515,T8N, R60W
10) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-51/2 SE1/4,521,T9N, R60W
11) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2,527,T9N,R60W
N 12) Deny Request of Noble Energy for Extension of Oil and Gas Lease-W1/2 SE1/4,520,T9N, R60W
N 13) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-SE1/4,530,T9N, R60W
14) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4,531,T9N, R60W
N 15) Deny Request of Noble Energy for Extension of Oil and Gas Lease-Lot 4,SW1/4, NW1/4,54,T8N, R59W
16) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2,58,TBN, R59W
Bruce Barker and I explained the logic for the 1/6 bonus amount and the potential for assignment to ensure proper spacing;
however,the discussion came down to the fact that the proposed extension amounts(on the larger parcels specifically)did not
meet the current minimum of$400.00, let alone recent auction amounts which have gone as high as$4,026 per acre. Basically,the
Board moved to deny all but the three 40-acre extension requests,but asked that I express that Noble still has the option to submit
subsequent extension requests on the remaining parcels at the minimum of$400.00 per acre, or higher.
As it currently stands, Noble previously paid$111,487.33,the three lease extensions granted today total$47,161.68,and I need to
issue you a refund in the amount of$64,325.65. I will finalize the Resolutions for all 16 action items, record the three that were
awarded,forward signed copies of everything and include the refund check as soon as all of the paperwork is complete. If you have
any questions, please don't hesitate to contact me. Thanks!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
915 10th Street
Greeley, CO 80631
tel: (970)336-7215 X4226
LI I I 20I
ffr
WELk NTT
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: cmoore@nobleenergyinc.com 1mailto:cmoore@nobleeneravinc.com1
Sent: Monday, May 16, 2011 5:43 AM
To: Esther Gesick
Subject: RE: Extension Requests
2
Hi Esther,
We can't justify increasing our offer on the other 8 leases so you're correct-we'll remove them from our extension offer
and focus on the remaining 8 leases on the revised Exhibit A.
Please let me know if there is anything further you need with respect to our revised offer- I'll look forward to hearing the
results.
Regards,
Curt Moore
Land Supervisor
303-228-4062 (Denver)
303-228-4285 (fax)
cmoore@nobleenergyinc.com
From: Esther Gesick<egesick@co.weld.co.us>
To: "cmoore@nobleenergyinc.com"<cmoore@nobleenergyinc.com>
Date: 05/13/2011 03:40 PM
Subject: RE:Extension Requests
Hi Curt,
I just want to make sure I'm understanding. The new Exhibit A only contains 8 of the 16 leases. What is your intension for the
remaining 8 that are now unlisted?
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
915 10th Street
Greeley, CO 80631
tel: (970)336-7215 X4226
1{41.2011
WW f NTY
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: cmoore@nobleenergyinc.com fmailto:cmoore@nobleenerovinc.com]
Sent: Friday, May 13, 2011 11:28 AM
To: Esther Gesick
Cc: Joe Lorenzo; dpadgett@nobleenergyinc.com
Subject: Re: Extension Requests
Esther,
Please see Noble's attached letter dated May 13, 2011 and the attached Exhibit A Lease Schedule referencing Noble's
supplemental bid for certain Weld county lease extensions. As we discussed, the bid comprises a$375 per net mineral
acre offer which equates to 1/6 of the$2250 per net mineral acre amount that Noble paid for 1120 net acres at Weld
County's March lease sale. We believe paying 1/6 of the$2250 per acre amount coincides with the six month extension
being 1/6 of the three year primary lease term.
3
Please contact me if you need anything further regarding this matter.
Curt Moore
Land Supervisor
303-228-4062 (Denver)
303-228-4285(fax)
cmoore@nobleenergyinc.com
From: Esther Gesick<egesick@co.weld.co.us>
To: "cmoore@nobleenergyinc.com"<cmoore@nobleenergyinc.com>
Cc: Bruce Barker<bbarker@co.weld.co.us>
Date: 05/13/2011 09:20 AM
Subject: Extension Requests
Good Morning Curt,
I'm in the process of proofing the Agenda and Draft Resolutions for Monday and was wondering if Noble reps have come to a
consensus on the counter-proposal for the extension requests. As previously discussed, I will need your letter and revised Exhibit A
at some point this morning in order to draft Resolutions for everyone's consideration on Monday. We can sort out the money
aspect of it all after a final decision has been made.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board/Office Manager
915 10th Street
Greeley, CO 80631
tel: (970)336-7215 X4226
I , I -1011
J
WEL - 0 PITY
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.
4
1825 Broadway ■ v noble
Sune0002 energy
Denver.CO 80202
Tel:303.228.4000
Fax 303.228.4280
www.nobleeneryyinc.com
May 13,2011
Weld County,Colorado
c/o Board of County Commissioners
P.O.Box 758
Greeley,CO 80632
RE: Weld County Oil and Gas Leases
Dated October 27,2008
Weld County,Colorado
Ladies and Gentlemen:
Noble Energy, Inc. ("Noble") is the current leasehold owner of the referenced Weld County Oil and Gas
Leases, as described in Exhibit"A" ("Leases"). The Leases are due to expire at twelve o' clock noon on
October 26,2011.
Noble previously submitted on March 14,2011 written application for extensions of the Leases under the
terms provided for in Paragraph 24. The previous offer for the six(6)months extension from October 26,
2011, included a total bonus payment of$109,393.83, which sum represented one-third of the original
bonus, plus $2,093.50 as the cumulative rental fees for the term of the extension. Noble previously
submitted a check in the amount of$111,487.33.
By this letter,Noble wishes to supplement its original offer for certain leases and respectfully submits the
attached Exhibit A that has been amended to reflect a $375 per net mineral acre offer for each lease
shown. Exhibit A reflects a Total Amended Bonus Offer of$396,116.00 for the leases shown. Noble
makes this supplemental offer with the understanding that Weld County will administratively approve
assignments of the I lanes during the extended term. The royalty for the extended terms will remain the
same. Should Weld County accept this offer Noble will remit a supplemental check in the amount of
$284,628.67 ($396,116.00 - $111,487.33 = $284,628.67) within seven (7) days of notice of arr.eptance
from Weld County.
Please contact me at(303)228-4062 if you have any questions.
Very truly yours,
NO LE ENERGY,INC.
Cu More
Land Supervisor
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1625 Broadway y� noble
o y 2200 _ ener
Denver,Colorado 80202 V 9 7
Tel:303.228.4000
Fax:303.228.4280
2011 un 18 A II: 2b
March 14,2011
Weld County, Colorado
do Board of County Commissioners
P.O. Box 758
Greeley, CO 80632
RE: Weld County Oil and Gas Leases
Dated October 27, 2008
Weld County, Colorado
Ladies and Gentlemen:
Noble Energy, Inc. ("Noble") is the current leasehold owner of the referenced Weld
County Oil and Gas Leases, as described in Exhibit"A" ("Leases"). Enclosed for your
reference is a copy of the Leases as well as a copy of the Assignment from
Transcontinent Oil Company, the lessee, to Petro-Canada Resources recorded at
Reception No. 3601828, and the Assignment from Petro-Canada, successor lessee, to
Noble recorded at Reception No. 3678594. The Leases are due to expire at twelve o'
clock noon on October 26, 2011.
Noble is hereby making written application for an extension of the Leases under the
terms provided for in Paragraph 24. The extension will be for six (6) months from
October 26, 2011, with a total bonus payment of$109,393.83,which sum represents one-
third of the original bonus,plus $2,093.50 as the cumulative rental fee for the term of the
extension. Enclosed is Noble's check in the amount of$111,487.33. The royalty for the
extended terms will remain the same.
Your earliest consideration of this extension request is appreciated. Please call me at
(303) 228-4062 if you have any questions.
Very truly yours,
NOBLE ENERGY, INC.
Curt oore
Land Supervisor ii
or gams Stwas+cr
,303' zzg— 44147S
Page 1 of I
INVOICE NUMBER INVOICE DATE DESCRIPTION DISCOUNT NET AMOUNT
031511WELD 15-MAR-11 WATTNBRG BONUS 0.00 111,487.33
0.00 111,487 .33
NOBLE ENERGY,INC.
03/16/11 2011010240 124102 P.O. BOX 909 110 W.BROADWAY $****111,487.33
ARDMORE,OKLAHOMA 73402 (800)220-5824 TOTAL
DATE CHECK NO. ACCT. NO.
O
RECEIPT DATE : -:8 -1 I NO. 8 5 81 6
112
o -0 c\Ico RECEIVED FROM N o«1e E e+cj i I kc -
0 m 8 ADDRESS
Z• cll 2 0 a,4 e A(/n/•sc16,le vrri -Ore vso rd-o yr h u?d .d 7, $ j 1 I /LI g7. 3�'
8 o o a FOR 1~1 Extensc,r:ry amo) if, b,,,,, 7L.a��`�o ,zo xi, /cog.v8
-o - m a,- _ l 406 Le-4:2/v.craDis, Le°or, ''
au ai a 2 HOW PAID LEa2zz [EC253 Lk253 c.Eax1F
v a O H *d011010 6NO GE 7
�� III, � C�-,'
, y g 7 .?3 BY .S �
�511 MONET
ORDER'
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