HomeMy WebLinkAbout20111671.tiff RESOLUTION
RE: RATIFICATION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY
OWNED BY WELD COUNTY, COLORADO, AND AUTHORIZE CHAIR TO SIGN -
NW114, S12, T7N, R64W
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, Colorado, is the owner of vast acres of mineral lands located
in Weld County, Colorado, and
WHEREAS, the Board has been presented with a Ratification of Oil and Gas Lease
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and Noble Energy WyCo, LLC, with further terms and
conditions being as stated in said ratification, and
WHEREAS, after review, the Board deems it advisable to approve said ratification, a
copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Ratification of Oil and Gas Lease between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and
Noble Energy WyCo, LLC, be, and hereby is, approved.
C� N .\0\Z 2011-1671
LE0117
-:-I I
RATIFICATION OF OIL AND GAS LEASE - NW1/4, S12, T7N, R64W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 13th day of July, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COL RADO
ATTEST: .Y it b Pifc
rbara Kirit km Chair
Chairit /
Weld County Clerk to the Board �_, /� c---•
ELq
BY: , .`� Sea hCon Pro-Tern
w
Deputy erk to the Bo
Garci�
AP D RM: ®t
vid E. Long
unty orney r.,
Dougla ademacher
Date of signature: 3
2011-1671
LE0117
1625 Broadway y� noble
Suite 2000
. t,, energy
Denver,CO 80202
Tel:303.228.4000
Fax:303.228.4280 - -
www.nobleenergyinc.com July 5, 2011 - • -, ,.� C. J
1_
Weld County Colorado: Board of County Commissioners
Attention: Minerals Division
PO Box 758
Greeley, CO 80632
RE: Oil and Gas Lease
Township 7 North, Range 64 West
Section 12: NW/4
160 Acres
Weld County, Colorado
Dear Board,
The captioned lands are subject to that certain Oil and Gas Lease, dated April 9,
2008, by and between the Board of County Commissioners of the County of Weld, as
Lessor, and Petro-Canada Resources (USA), Inc., as Lessee, recorded at Reception
No. 3550766 and re-recorded at Reception No. 3581844 of the Weld County Clerk
and Recorders records. ("Lease")
The Lease is now owned by Noble Energy, WyCo, LLC, a subsidiary of Noble Energy,
Inc. as successor to Petro-Canada Resources (USA), Inc.
An acquired Drilling and Division Order Title Opinion, dated May 7, 2010, requests in
requirement #3 to ratify the Lease due to the fact that the original lease did not
contain an expiration date. Although the re-recorded lease does, the insertion of
that date was not acknowledged by the Lessor.
Therefore, enclosed please find a Ratification of the Lease, submitted in duplicate, as
well as copies of pertinent pages of the title opinion and filings. Please execute the
Ratification and enclose one(1) original for our records in the return prepaid mailing
envelope.
Thank you and should you have any questions, please feel free to contact Darlene
Black via e-mail at DBlack@nobleenergyinc.com or direct line at (303)-228-4232.
Sincerely,
NOBLE ENERGY, INC.
Preston Midkiff
Wattenberg Land
070//-/667/
LEO// 7
•
RATIFICATION OF OIL AND GAS LEASE
WHEREAS, heretofore, effective April 9, 2008, 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, for its respective interests, c/o Board of County Commissioners,as Lessor, did execute and deliver
to Petro-Canada Resources (USA) Inc., as Lessee, an oil, gas, (and mineral) lease which was recorded at
Reception No. 3550766 and re-recorded at Reception No. 3581844 of the records of Weld County,
Colorado (the "Lease"), and described as follows:
Township 7 North, Range 64 West, 6th P.M.
Section 12: NW/4
WHEREAS, the Lease and all rights and privileges thereunder are now owned and held by Noble
Energy WyCo, LLC.; and
WHEREAS, it is the desire of the undersigned to adopt, ratify and confirm the Lease, and to
grant, lease and let said lands in accordance with the terms and provisions hereof.
NOW THEREFORE, in consideration of the premises and the mutual benefits obtained by the
undersigned and Noble Energy WyCo, LLC., the Board of County Commissioners, the undersigned, do
hereby adopt, ratify and confirm the Lease, and let to said Noble Energy WyCo, LLC., any and all
interest which, the undersigned, do have or may hereafter acquire in and to said lands, in accordance with
each and all of the terms and provisions of the Lease, and as fully and completely as if the undersigned
had originally executed, acknowledged, and delivered the Lease as one of the Lessors therein, either on
the date thereof, or on the date hereof, and the undersigned declares that the Lease and all of its terms
and provisions are binding on the undersigned and is a valid and subsisting oil, gas, and mineral lease.
Noble Energy WyCo, LLC., shall have all of the rights, privileges, and options as to the interest in said
lands owned by the undersigned as are conferred by the provisions of the Lease.
This agreement shall extend to and be binding upon the heirs, executors, administrators,
successors, and assigns of each of the undersigned.
WITNESS OUR HANDS THIS 13th DAY OF JULY, 2011.
/
mm'rBoard of County Coissioners
Weld County, Colorado
Barbara Kirkmeyer, Chair
STATE OF COLORADO )
Acknowledgement
COUNTY OF WELD
Before me the undersigned, a Notary bPublic, in and for said County and State, on this 13th
day of July, 2011, personally appeared Kirkmeyer , acting in their capacity as Chair of
the Board of County Commissioners, Weld County, Colorado, to me known to be the identical person
who executed the within and foregoing instrument and acknowledged to me that he or she executed the
same as his or her free and voluntary act and deed for the uses and purposes therein set forth.
Given under my hand and seal the day and year last above written.
SEAL ...,gfCy
Notary Public
Of 40144 ‘..743
My commission expires: t • Address: //`- / ��
lit'.• ........
er)\-0
MY COMMISSION E Ik NES:O*10401?
1111111 111111 IIIII 111111 IIIII III left It It
3781021 07120/20 cb//-/t 7/
1 of 1 R 0.00 0 0.00 Steve Moreno Clerk&
COPY
Jon Erling Johnson Attorney at Law
• 140 South Washington Avenue • Louisville, Colorado 80027 • 303/594-6323 •
May 7,2010
Ms. Carol Meyer,
Land Negotiator
Noble Energy,Inc.
•
1625 Broadway,Suite 2200
Denver, Colorado 80202
Re: WalckerAB12-12 Well
§12:All
T7N,R64W,6th P.M.
Weld County,Colorado
DRILLING AND DIVISION ORDER TITLE OPINION
covering
Township 7 North,Range 64 West, 6th Principal Meridian
Section 12: All
Weld County,Colorado
Containing 640.00 acres,more or less
Hereinafter referred to as the"subject lands".
Dear Carol,
Pursuant to your request, I have examined the below listed materials for the purpose of
rendering a Drilling and Division Order Title Opinion covering the subject lands. As a result of my
examination, I have determined that the current ownership of the surface, mineral, oil and gas
leasehold, oil and gas production, and the proceeds from the sale of the oil and gas production,
effective as of January 26, 2010 at 7:00 a.m., is as specified hereafter, subject to the Exceptions,
Comments and Requirements that follow.
Unsigned Electronic Copy
Noble Energy,Inc.
Drilling and Division Order Title Opinion
Section 12: All,T7N, R64W, 6th PM
COMMENTS AND REQUIREMENTS
• Comment No.1: All references in this Opinion to records and the recording of
instruments refer to the records in the Office of the Clerk and Recorder,Weld County, Colorado,
unless otherwise specified. All references to lands in Section 12 of this Opinion are to lands in
Township 7 North, Range 64 West of the 6th Principal Meridian in Weld County, Colorado, unless
otherwise noted. All references to Leases A through H refer to Leases A through H as described
in the Oil and Gas Leases section of Addendum A to this Opinion.
Requirement No. 1: None, advisory only.
Comment No. 2: Leases A through H, as described herein, are all within their respective
primary terms.There are no instruments in the materials examined to suggest that Leases A through
H are not currently in full force and effect through the effective date of this opinion.
Requirement No.2: None, advisory only.
. Comment No.3: By a Weld County Oil and Gas Lease dated April 9, 2008,recorded at
Reception No. 3550766, Lease B as described herein,the Weld County Board of Commissioners
granted Petro-Canada Resources (USA) Inc. the right to drill, develop and produce oil and gas
from the NW/4 of Section 12. Lease B is on a custom form that does not provide the duration of
the primary term in the habendum clause as a stated number of years, and so long thereafter as
oil and gas, or either of them, are produced. Instead, the form provides the expiration date of the
primary term,absent continuance operations or production therefrom.
As recorded at Reception No. 3550766, the expiration date was not entered into the
habendum clause. Lease B was re-recorded on October 2, 2008 at Reception No. 3581844,
wherein the expiration date of April 9,2011 was added to the habendum clause. However, Lease
B was not re-executed by the parties or re-acknowledged. Based on the absence of any recording
fees, that the instrument was returned to the "Clerk to the Board Inner Office", and a telephone
conversation with the Clerk and Recorder's Office,the examiner has discovered that Lease B was
recorded and re-recorded by the Weld County Board of County Commissioners.
The materials examined did not include a Resolution by the Weld County Board of
County Commissioners approving the execution of Lease B, or attaching an executed and
acknowledged copy thereof that included an expiration date in the habendum clause.
A written instrument that is required to be acknowledged affecting title to real property,
whether acknowledged or unacknowledged, after being recorded in the County Clerk and
Recorder's Office where the property is situate, is notice to third parties claiming any interest in
Page 19 of 55 Unsitntet. Electronic Copy
Noble Energy,Inc.
Drilling and Division Order Title Opinion
Section 12: All,T7N,R64W,6`"PM
the property. Colorado Revised Statutes §38-35-106. However,Colorado law does not permit the
examiner to conclude that the insertion of the expiration date in the habendum clause in Lease B
is genuine,without Lease B being re-executed and re-acknowledged.
The examiner has presumed for purposes of this Opinion that April 9, 2011 is the
expiration date of the primary term of Lease B.
Requirement No.3(a): You should confirm the examiner's presumption that
the expiration date of the primary term of Lease B is April 9, 2011. If you
determine the examiner's presumption is correct,you should record your duplicate
original of the above referenced Weld County Oil and Gas Lease that was
properly executed and acknowledged, which included the expiration date typed in
the habendum clause. If such an instrument is not available, you should obtain
and record a certified copy of the Weld County Oil and Gas Lease recorded at
Reception No. 3550766, which has been re-executed by the parties and re-
acknowledged that has the expiration date typed in the habendum clause.
If you determine that the examiner's presumption is incorrect, you should notify
this office for purposes of a supplemental opinion.
Lease B contains many unusual provisions including Lessor's right to explore, record
retention and inspection, measurement standards, surrender of acreage, maximum overriding
royalties(5.0%), extensions,and archeology.
Requirement No.3(b): You should also familiarize yourself with all the terms
and conditions set forth in Lease B and conduct your operations accordingly.
Comment No.4: Leases C, D and E are all dated July 1, 2008 and have a three year
primary term. Each of the Lessors granted the Lessee the exclusive right and option to extend the
primary term of the respective leases for two additional years by mailing to Lessor at the address
listed on the lease, on or before the end of its primary term, a bonus consideration equal to one
hundred percent of the bonus consideration originally paid,which payment shall represent payment
in full of consideration for the extension.
• Requirement No.4(a): If you should elect to exercise the option to extend
Leases C, D and E for an additional two years,you should obtain and record,prior
to the expiration of their primary terms, i.e. July 1, 2011, a ratification from each
of the Lessors acknowledging the receipt of the bonus consideration, and
confirming, letting and ratifying said lease for an additional two year primary
term. •
Leases C,D and E also contain an Exhibit"A"that supersedes the printed terms of the lease
Page 20 of 55 Unsigned Electronic Copy
166
Jil and Gas Lease
. Page 1
WELD COUNTY OIL AND GAS LEASE
Containing 160.00 acres, more or less:
Containing 160.00 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this RA-v._ day of ( 1r, , 20 0`3r made and
entered into by and between WELD COUNTY,COLORADO,a political ubdivision of the STATE OF COLORADO,
acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,for its respective
interests,do BOARD OF COUNTY COMMISSIONERS,915 10TH STREET,P.O. BOX 758,GREELEY,CO 80632,
hereinafter called Lessor, and:
Petro-Canada Resources(USA) Inc.,999 18111 Street,Suite 600
Denver, Colorado 80202-2499
hereinafter called Lessee:
WITNESSETH
WHEREAS,said Lessee has applied to Lessor for an oil and gas lease covering the land herein described,and has
paid a filing fee in the amount of$10.00,plus a bonus consideration of$-1.014.30-per mineral acre,fixed by Lessor
as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
S 160.00 . , computed at the rate of$ 1.00 ,per mineral acre or fraction thereof per year,and the following
consideration:
One-Hundred Sixty Two Thousand Two Hundred Eighty Eight Dollars and No/00(162,288.00)
WHEREAS,all the requirements relative to said application have beer duly complied with and said application
has been approved and allowed by Lessor;
THEREFORE,in consideration of the agreements herein,on the part of Lessee to be paid,kept and performed,
Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,development of and production
of oil and gas,or either of them,thereon and therefrom with the right to own all oil and gas so produced and saved
therefrom and not reserved as royalty by Lessor under the terms of this lease,together with rights-of-way,easements
and servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring for such
product,and housing and boarding employees,and any and all rights and privileges necessary for the exploration
and operation of said land for oil and gas, the following described land situated in the County of Weld. State of
Colorado,and more particularly described as follows: o
MEIN[a°a
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE m
c_
=U
NW1/4 12 7N 64W a0 2
0 N
TO HAVE AND TO HOLD said land,and all the rights and privileges granted hereunder to Lessee until the hour "-=',3
of twelve o'clock noon on the day of , 20 as primary term, and so long Irma.
thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee is diligently m 2
engaged in bona fide drilling or reworking operations on said land,subject to the terms and conditions herein. Drilling _r
or reworking operations shall be deemed to be diligently performed if there is no delay or cessation thereof for a r g
greater period than sixty consecutive days unless an extension in writing is granted by lessor;provided that such =m 6
drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease N o
is in force by reason of production of oil and gas or either of them,or that such reworking is commenced within sixty =g c
days upon cessation of production for the purpose of re-establishing the same, and provided further that such aoo
production is commenced during such primary term or any extension thereof,or while this lease is in force by reason rc
of such drilling or reworking operations or other production. �LO CC
S
EXPLORATION-Lessor reserves the right to conduct exploration on the leased land provided such exploration fP
does not interfere with rights granted herein.
Z 0019-'°4-0 I
tF oil 7
$44 6 ..y y
I6
�.Jil and Gas Lease
Page 1
WELD COUNTY OIL AND GAS LEASE
Containing 160.00 acres, more or less:
Containing 160.00 net mineral acres, more or less:(�,
THIS LEASE AGREEMENT, dated this "1A-n, day of V- S 20 O made and
entered into by and between WELD COUNTY,COLORADO,a political ubdivision of the STATE OF COLORADO,
acting by and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,for its respective
interests,do BOARD OF COUNTY COMMISSIONERS,915 10TH STREET,P.O. BOX 758,GREELEY,CO 80632,
hereinafter called Lessor,and:
Petro-Canada Resources (USA) Inc., 999 18TH Street, Suite 600
Denver, Colorado 80202-2499
hereinafter called Lessee:
WITNESSETH
WHEREAS, said Lessee has applied to Lessor for an oil and gas lease covering the land herein described,and has
paid a filing fee in the amount of$10.00,plus a bonus consideration of$-1.014.30-per mineral acre,fixed by Lessor
as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of
$ 160.00 . , computed at the rate of$ 1.00 , per mineral acre or fraction thereof per year,and the following
consideration:
One-Hundred Sixty Two Thousand Two Hundred Eighty Eight Dollars and No/00(162,288.00)
WHEREAS,all the requirements relative to said application have been duly complied with and said application
has been approved and allowed by Lessor;
THEREFORE, in consideration of the agreements herein,on the part of Lessee to be paid,kept and performed,
Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for,development of and production
of oil and gas,or either of them,thereon and therefrom with the right to own all oil and gas so produced and saved
therefrom and not reserved as royalty by Lessor under the terms of this lease,together with rights-of-way,easements
and servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring for such — ,
product,and housing and boarding employees, and any and all rights and privileges necessary for the exploration — I
and operation of said land for oil and gas, the following described land situated in the County of Weld, State of O )
Colorado, and more particularly described as follows: imi c a
'ana
NMI— DESCRIPTION OF LAND SECTION TOWNSHIP RANGE n.
c t
— V a cc
o NW1/4 12 7N 64W chi i
—9s
TS,'—a a.e TO HAVE AND TO HOLD said land,and all the rights and privileges granted hereunder to Lessee until the hour - 2
III".z 1 of twelve o'clock noon on the 9th day of April , 20 11 as primary term, and so long red 5
—=a thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee is diligently =is L
=8 g engaged in bona fide drilling or reworking operations on said land,subject to the terms and conditions herein. Drilling on iNi
Ellolm P— E or reworking operations shall be deemed to be diligently performed if there is no delay or cessation thereof for a — `e
— oo
M greater period than sixty consecutive days unless an extension in writing is granted by lessor, provided that such =o a
0 drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease aigi
Min-H is in force by reason of production of oil and gas or either of them,or that such reworking is commenced within sixty =g 2
a o days upon cessation of production for the purpose of re-establishing the same, and provided further that such o e
o production is commenced during such primary term or any extension thereof,or while this lease is in force by reason a
in$o of such drilling or reworking operations or other production. _I
Ia.
=a g EXPLORATION-Lessor reserves the right to conduct exploration on the leased land provided such exploration
0
S'o does not interfere with rights granted herein.
Imo 4 am. it
a-s LF c// 7
Hello