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HomeMy WebLinkAbout20112909.tiff RESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO SIGN - LONETREE ENERGY AND ASSOCIATES, LLC 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, LoneTree Energy and Associates, LLC, 3 West Dry Creek Circle, Littleton, Colorado 80120, 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: A strip of land 150 feet in width, being 75 feet wide on each side of the center line of the track of the Denver Laramie and Northwestern Railway as now located, surveyed and staked out over and across the E1/2 SW1/4 of Section 6, Township 6 North, Range 66 West of the 6th P.M., Weld County, Colorado; said center line being more fully described as follows: Beginning at a point on the south line of said E1/2 SW 1/4,/4, 499 feet west of the east line thereof; thence running north 57° 19' west 954.3 feet; thence northwesterly on a curve to the right with a radius of 5,730 feet, for a distance of 107.7 feet to a point on the west line of said E1/2 SW1/4, crossing said line 595 feet (more or less) north of the southwest corner thereof. A total distance of 1,062 feet. WHEREAS, LoneTree Energy and Associates, LLC, is offering to lease the above described mineral acres, containing 3.65 mineral acres, more or less, and WHEREAS,the Board finds that the lease offer from LoneTree Energy and Associates, LLC, in the amount of ONE THOUSAND FOUR HUNDRED SIXTY AND NO/100 DOLLARS($1,460.00), is acceptable, with 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. 2011-2909 i 0-4A, LavutTra LE0071 IIlDlt WAIVE BID PROCEDURE - LONETREE ENERGY AND ASSOCIATES, LLC PAGE 2 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the request of LoneTree Energy and Associates, LLC, 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 LoneTree Energy and Associates, LLC, 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. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 2nd day of November, A.D., 2011. BOARD OF COUNTY COMMISSIONERS WELp COUNTY, COLORADO ATTEST: , 66/11(11, LtZ (-Ai RRaaarbara Kirkmeyer, CVylair Weld County Clerk to the Board EI,! XCUSED can P. Cony Pro-Tem BY: Deputy C rk to the Boar iam F. Garcia APPROVED AS TO5ORM1: (jl7 7✓✓ � ' vZ David E. Long /� L Y y l'h�t1` L 3 ())C 5/k w�i County Attorney Douglas/Rademach r Date of signature: //-7-// 2011-2909 LE0071 WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this 25th day of October, 2011, 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, &.4-5-49th-Street, P.O. Box 758, Greeley, CO 1150 '0"S{, 80632, hereinafter called Lessor, and LoneTree Energy & Associates, LLC, 3 West Dry Creek Circle, Littleton, CO 80120 hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of$1,460.00, 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: Section 6 Township 6 North, Range 66 West of the 6th P.M., Weld County, Colorado: A strip of land 150 feet in width, being 75 feet wide on each side of the center line of the track of the Denver Laramie and Northwestern Railway as now located, surveyed and staked out over and across the E/2SW/4 of Section 6, in Township 6 North, Range 66 West of the 61h P.M. Said center line being more fully described as follows: Beginning at a point on the South line of said E/2SW/4, 499 feet West of the East line thereof; thence running North 57°19' West 954.3 feet; thence Northwesterly on a curve to the right with a radius of 5730 feet, for a distance of 107.7 feet to a point on the West line of said E/2SW/4, crossing said line 595 feet (more or less) North of the Southwest corner thereof. A total distance of 1062 feet. and containing 3.65 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 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 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 prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the 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. 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 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. E__0O71 IIIIII VIII IIIIIII III VIII IIIIIII VIII III VIII IIII IIII n actract)ases\Weld Co.ase_SmallTraactof Updated _ .1 -"(111 3804378 11/08/2011 12:22P Weld County, CO 2011-2909 1 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 3. In consideration of the premises the said Lessee covenants and agree 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. 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, shall 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. 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. 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 HBO 11111 DID III 11111 IIIIIII VIII Ill 11111 IIII I'll n Lake)leases ase Board SmallTrrat f Updated Legal 102611.doc 3804378 11/08/2011 12:22P Weld County, CO (Revised 1/2011) 2 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 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. 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 gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by operation of the paragraph without further action by Lessor, or further notice to Lessee. 16. All of the provisions of this lease shall be binding upon the heirs, personal 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. 1111111 11111 1111111 III VIII 1111111 11111 111 11111 1111 1111 3804378 11/08/2011 12.22P Weld County, CO rerd Lake)\Leases\Weld Co.Board of Commissioners\10-25-2011 3 of 4 R 0.00 0 0.00 Steve Moreno Clerk& Recorder (sm ac tract)\FOLease_SmallTract-Updated Legal 10.26.11.doc (Revised 1/2011) 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 Board BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO y I By. � fl' " - - l c. �/Mt/bC eputy Cl r c tot aSe Ilea hair, Board of Cou ty Commissi ners NOV 0 2 2011 LESSEE: LO REE EN &ASSOCIATES, LLC 4, .^ By J�)��� Aus in Mater Title: nacc,Y/ M ahager STATE OF COLORADO ss COUNTY OF ARAPAHOE The foregoing instrument was 1acknowledged before me this 7 day of l JC.5 0-F�l' , 20 LI , by Li��C�r. f..y �.., rCc�r�v� n i Wi 1py, ‘a 1_,4, LAC, Witness my hand and official seal. PATRICIAA KOENIG Notary Public \c/am` --c. GI" NOTARY PUBLIC,STATE OF COLORADO My Commission Expires: 3, 1 -c l N My Comm. Expires March 27,2015 11111111111 DID III 11111 till 11111 III IIIII IIII IIII 3804378 11/08/2011 12:22P Weld County, CO 4 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder W:\Clients\PDC\Prospects\Colorado Prospects\Wattenberg(Howard Lake)\Leases\Weld Co.Board of Commissioners\i 25-2011 6-66 Sec 6(sm ac tract)\FOLease_SmallTract-Updated Legal 10.26.11.doc (Revised 1/2011) ! LONETREEENERGY -- - - & ASSOCIATES, LLC October 26,2011 Weld County Board of County Commissioners 915 10th St. P.O. Box 758 Greeley,CO 80632 RE: Howard Lake Prospect(HOW-745, 313-21) Oil and Gas Lease and Bonus Consideration Township 6 North-Range 66 West,6th P.M. Section 6: A tract of land in the E/2SW/4 containing 3.65 ac Dear Ms. Gesick, Per our recent emails and phone conversation, enclosed please find check No. 69130 in the amount of$1,460.00 from LoneTree Energy (on the behalf of Petroleum Development Corporation). I have also included Oil and Gas form for the small tract of land we are leasing referenced above. Per your email on October 12,2011,you will send the original Oil and Gas Lease to us after it has been filed in the county records. Please acknowledge receipt of this check for the full bonus consideration by signing and dating this letter below. Return the executed original to us and retain the copy of this letter for your records. If you have any questions regarding this matter, do not hesitate to call me at 303-233-8700 ext. 107. Respectfully, Patti oenig LoneTree nergy&Associa , LLC Agent fo Petroleum opment Corporation /pk Enclosures Received LTE Check#669130 from LoneTree Energy&Associates LLC as agent for Petroleum Development Corporation,in the amount of$1,460.00 on this 271' day of(t f,,, ,2011. Board of County Commissioners of the County of Weld By: Cz:Zlfu . Its: Z/ t .614 , tlj 3 WEST DRY CREEK CIRCLE • LITTLETON, CO 801 20 T: (303) 233-8700 • F (303) 233-8787 a RECEIPT DATE Ca; ' ,.,`..7 ,'�`'// NO. 8 6 1 0 1 a -0 m RECEIVED FROM (X� n i, 174G '7` CL C-- C-- U o o ADDRESS m Y a (On . �,u.) r cw y,-f:/ .. �` 6°40 $ %44 O. U a o ai FOR �'mad ,itAci ac . (Lrto71 ` t2Sw' , (v-(o-(oL4) -p Y m ru O ,42 O HOW PAID . �)r CASH .441YC,�� ,,37 _mi '{�l CHECK i T CoO BY L,C�7f N „. F MONEY ORDER Esther Gesick From: Patti Koenig [pkoenig@lonetreeenergy.com] Sent: Monday, October 17, 2011 9:06 AM To: Esther Gesick Subject: RE: Oil and Gas Lease Mineral Interest Open Good Morning Esther, Please review the notes from the Title Attorney regarding this 3.65 ac tract or as per your notes a 2.5 ac tract. We would like to get this under lease and wondering if you will review the notes below and decide if we could lease as the 3.65 acres or if Weld County is only willing to use the 2.5 ac description. By WARRANTY DEED dated February 28, 1910, recorded at Book 357, Page 248, Reception No. 175003, Orville T. Austin conveyed a strip of land 150 feet in width across the E/2SW/4 of Section 6, containing 3.65 acres, more or less,to The Denver, Laramie and Northwestern Railway Company for use as a right-of-way. This strip of land is described as Tract 2 in this opinion. Pursuant to the decree of foreclosure and sale dated April 24, 1915, issued by the District Court of the City and County of Denver, State of Colorado, in cause numbered Consolidated No. 55132 (as described in [Sheriffs] DEED dated June 4, 1917, recorded at Book 471, Page 508, Reception No. 255640 on July 10, 1917), the Sheriff of the City and County of Denver executed a DEED dated June 4, 1917, recorded at Book 471, Page 508, Reception No. 255640, conveying, to M.S. Radetsky, all of the interest owned by The Denver, Laramie and Northwestern Railway Company in a "One hundred and fifty (150) foot right of way and grade, extending in a northwesterly direction across the southeast quarter (SE1/4) of the southwest quarter (SW1/4) of section six (6), township six (6) north, range sixty six (66) west", among other lands. By TREASURER'S DEED TO COUNTY dated April 8, 1940, recorded at Book 1063, Reception No. 845149, the Weld County Treasurer conveyed a "R/W over & across E1/2SW1/4: Section 6, Township 6 North, Range 66 West" to Weld County, Colorado.The deed states that the property conveyed was acquired by the Weld County Treasurer as a result of a foreclosure of the tax lien for unpaid 1924 taxes (Certificate No. 1256, Book No. 6 Tax Sale Record, Year of Sale 1925, S.D. 52), but does not identify the name of the person or entity that lost the right-of-way to foreclosure. The aforementioned Certificate No. 1256 was not available for examination in Office of the Weld County Treasurer. A DECREE IN QUIET TITLE dated November 10, 1942, recorded at Book 1102, Page 340, Reception No. 908802, issued in the case of The Board of County Commissioners of the County of Weld, State of Colorado, as Plaintiff, and Esther K. Mitchell, The Denver, Laramie and Northwestern Railroad Company, M.S. Radetsky, et al., as Defendants, Case No. 10118, District Court, Weld County, Colorado, states that: "...Weld County, State of Colorado is now and was at the time of the commencement of this action, seized in fee simple of...Right of way across East 1/2 SW1/4 Sec. 6, Tp 6 N.R. 66W.", among other lands, but the decree made no reference to the 150 foot wide right-of-way containing 3.65 acres that was conveyed in WARRANTY DEED dated February 28, 1910, recorded at Book 357, Page 248, Reception No. 175003 or DEED dated June 4, 1917, recorded at Book 471, Page 508, Reception No. 255640. Subsequently, Weld County, Colorado conveyed, to Gotfret Hergert (who was the current owner of the remainder of the E/2SW/4 of Section 6), a "R/W over& across E1/2SW1/4: Section 6,Township 6 North, Range 66 West of the 6th P.M....reserving therefrom, to grantor, the oil, gas or other minerals therein" (see DEED FROM COUNTY dated December 9, 1943, recorded at Book 1124, Page 170, Reception No. 929568). A Parcel Map of Section 6 printed from the website of the Office of the Weld County Assessor on May 13, 2011, does not show any right-of-way or narrow tract of land crossing the E/2SW/4 of Section 6. /SOOT/ The materials examined for this opinion included an OIL AND GAS LEASE dated June 12, 1956, recorded at Book 1461, Page 470, Reception No. 1239487, from Sara Radetsky, a widow, as "Lessor", to The California Company, as "Lessee", for a primary term of twenty(20) years (the "Radetsky lease"), covering "All that land lying and being situated in the County of Weld, State of Colorado, which lands are described in that certain [Sheriffs Deed]...dated the 4th of June, 1917, and recorded in the records of the Clerk and Recorder of Weld County, State of Colorado, in Book 471, Page 508". On January 31, 1957, G.B. Radetsky and Florence R. Lindner, as the "sole heirs of SARA RADETSKY", executed an amendment of the Radetsky lease. The materials examined also included four oil and gas leases executed by Weld County as "Lessor", issued in 1970, 1974, 1977, and 1983, all covering a "Right of way as described in [the TREASURER'S DEED TO COUNTY recorded at] Book 1063, Page 42, of the Weld County Records over and across the E/2 SW/4, containing 2.5 acres, more or less" (emphasis added) in Section 6,T6N, R66W, 6th P.M. The above-described deeds, decree and leases do not answer, with certainty, whether the right-of-way granted in WARRANTY DEED recorded at Book 357, Page 248, Reception No. 175003 is the same tract of land conveyed in TREASURER'S DEED TO COUNTY recorded at Book 1063, Reception No. 845149. Nevertheless, the examiner has presumed that the tracts are the same and has credited Weld County, Colorado with all of the oil, gas or other minerals in Tract 2, and has credited R. H. Farms, Inc. (successor-in-interest of Gotfret Hergert) with 100%of the surface rights in Tract 2. I look forward to hearing from you. Thanks for your time. Thank You, Patti Koenig LoneTree Energy&Associates, LLC 3 West Dry Creek Circle Littleton,CO 80120 pkoenig@lonetreeenergy.com P: 303-233-8700 ext. 107 F: 303-233-8787 CONFIDENTIALITY STATEMENT This email transmission (and/or the attached electronic documents) may contain confidential information belonging to the sender or other privileges. The information is intended only for the named recipient. If you are not the named recipient in the text of the message, or it is otherwise evident that the transmission was not intended to be sent to you, you are hereby notified that any use, disclosure, copying, or distribution of the contents hereof is strictly prohibited. From: Esther Gesick [mailto:egesick@co.weld.co.us] Sent:Wednesday,October 12, 2011 12:28 PM To: Patti Koenig Cc: Esther Gesick Subject: RE: Oil and Gas Lease Mineral Interest Open Patti, Our records reflect a 2.5-acre parcel, acquired by Deed 1671, recorded in Book 1063, Page 42, on 4/8/40. If the parcel you are describing is separate from this, please provide similar recorded documentation for me to use in establishing a separate file. 2 As for process,the County leasing policy waives the auction process for parcels that are five (5) acres or less. Please complete the attached Small Tract Lease form and return it to me for processing with the Commissioners. Upon recording, we will return the original to the leasing party for their records. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 1150 O Street P.O. Box 758'Greeley, CO 80632 tel: (970)336-7215 X4226 of =911 'N C0 USNTY 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: Patti Koenig (mailto:pkoenig@lonetreeenergy.com] Sent:Wednesday, October 12, 2011 8:36 AM To: Esther Gesick Subject:Oil and Gas Lease Mineral Interest Open Good Morning Esther, I am contacting you today regarding a 3.65 acre tract that is open in the following lands. Township 6 North, Range 66 West,6th P.M. Section 6: A 3.65 ac tract in the E2SW Please let me know how we can go about securing a lease on this parcel. I know you typically require this to go through auction but due to the small size of the tract we were curious if there were any alternatives. Please advise. Regards, Thank You, Patti Koenig LoneTree Energy&Associates, LLC 3 West Dry Creek Circle Littleton,CO 80120 pkoenig@lonetreeenergy.com P: 303-233-8700 ext. 107 F: 303-233-8787 3 Hello