HomeMy WebLinkAbout20110055.tiff Y_�
RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN - BAYSWATER EXPLORATION AND PRODUCTION, 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, Bayswater Exploration and Production, LLC, 730 17th Street, Suite 610,
Denver, Colorado 80202, 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:
N1/2 NW1/4 NW1/4 NE1/4, Section 24, Township 3
North, Range 63 West of the 6th P.M., Weld County,
Colorado
WHEREAS, Bayswater Exploration and Production, LLC, is offering to lease the above
described mineral acres, containing 5.0 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Bayswater Exploration and
Production, LLC, in the amount of FOUR HUNDRED AND NO/100 DOLLARS ($400.00) PER
ACRE, FOR A TOTAL OF$2,000.00, is acceptable,with the 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.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of Bayswater Exploration and Production, 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 Bayswater Exploration and
Production, 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.
• , bo.�sv- Y Lc�°3 2011-0055
�t IIC1 LE0190 5
WAIVE BID PROCEDURE - BAYSWATER EXPLORATION AND PRODUCTION, LLC (N1/2
NW1/4 NW1/4 NE1/4, S24, T3N, R63W)
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 5th day of January, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLO, DO
.�� E Ili
ATTEST: "Ah AYc
arbara Kirkmeyer, hair
Weld County Clerk tot • tclk , /]
r (�
Sean P. Cori_ Pro-Tem C
Deputy Clerk to the Boar• '. ► i \ G a CTh
APP D A
David E. Long
•
ounty Attorney Z 4 L\ina !A^
/ DouglgRadema h r
Date of signature: /( 20
2011-0055
LE0190
r
dillik BAYSWATER q
�. EXPLORATION & PRODUCTION, LLC ;; GEC 91 A ! 0
December 21, 2010
Deputy Clerk to the Board
Attn: Esther E. Gesick
915 10th St
Greeley, CO 80631
RE: Small tract leases 24-3N-63W, Weld County, CO
Dear Esther,
Please find the following enclosed:
a) 14 oil and gas leases
b) Check for$24,000 (60 net acres x $400)
c) Check for $140 ($10 filing fee x 14 leases) — ,Vofi nest.; t teubsteni4
The enclosed documents represent our offer to lease Weld County minerals in the above
described lands. Please do not hesitate to contact me if you would like to discuss this matter
further.
Respectfully,
Ben Schuessler
Landman
730 SEVENTEENTH STREET,SUITE 61 0, DENVER,CO 80202.3529
P:303.893.2503 F:303.893.2508
LC
730 17TH STRE
ET,ET,SUITE 61ER 10 PRODUCTION,DEENVER, CO L
80202 • 303-623-1777 CHECK NO. 010974
012-AP-13 12/20/10 122010B 24000 . 00 0 . 00 24000 . 00
0
RECEIPT DATE AR-a-7-zvho Na 85711
2 �j n
p RECEIVED FROM Ckl�w„u�(1 �w c Plod a �j ,L/L',
U o a ADDRESS J-
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U O (7 HOW PAID
CASH l 0974Argsk0
CHECK
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BY gil-ht
MONEY
ORDER
•
2227 BOARD OF WELD COUNTY 12/21/10 24, 000 . 0C
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lA:Aouiuo-nn PITT errCor,'WIC nnrl IKACKIT I TII CCC VAN I rnu CCC A 1A/ATCORAAOV
488 WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this _ J� day of _January
20_11 , 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, 915 10th
Street, P.O. Box 758, Greeley, CO 80632, hereinafter called Lessor, and:
Bayswater Exploration & Production, LLC
730 17th St, Ste 610
Denver, CO 80202
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of $ 2000 , 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_24_Township_3_North, Range_63 West of the 6th P.M., Weld County, Colorado:
N2NW NWNE
and containing 5 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
d or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the
a expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
0
m acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then
cc__ 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
- d prosecuted if not more than ninety (90)days shall elapse between the completion or abandonment of one
- o o well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
"Sm = said land or on acreage pooled therewith, the production thereof should cease from any cause after the
m
mEm-8 8 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
--0- d hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
-Rrn expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is
—r c produced from the leased premises or on acreage pooled therewith.
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arc 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees
may
NO
that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
c.r o operations during the primary term. Lessee may at any time or times during or after the primary term
imimo surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
Urmco cc Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
co"tr
=v to the acreage surrendered.
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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
a- is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
Wa" m
sccoti11. Lessee, at its option, is hereby given the right and power at any time and from time to
mmmY time as a recurring right, either before or after production, as to all or any part of the land described herein
— d and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
,3 c mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
= o g production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
=737) 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
MS
d or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
CI0 shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
ro reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
o theretofore been completed or upon which operations for drilling have theretofore been commenced.
g Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
IMIM
which includes all or a part of this lease shall be treated as if it were production, drilling or reworking
r-
Nc operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
o� specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
moo . royalties only on the portion of such production allocated to this lease; such allocation shall be that
=v proportion of the unit production that the total number of surface acres covered by this lease and included
r
C.)04
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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
v leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
— , regulation.
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o� 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
- t d gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
cthis lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
N 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
—N CO failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does
- o not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
o
operation of theparagraph without further action by Lessor, or further notice to Lessee.
f-ro P
=NO
-no 16. All of the provisions of this lease shall be binding upon the heirs, personal
c representatives, successors and assigns of Lessor and Lessee.
o
�co� 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
co described without the express written consent of Lessor.
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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:
..5
Weld County Clerk to the Board BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORA O
By: / C�-
Deputy Cler t fie Fla Chair, Board of Count Commissio ers
as1 'sA4'7,t� JAN 0 5 2011
� s-- LESSEE:
--„‹,.;,.,. . -sTal,
By: Lynn S. Belcher
Title: Director
STATE OF COLORADO )
) ss
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this 1/'r day of
‘79e.cP.n6«i , 20 /o , ......3..--r-
7 -
Witness my hand and official se I.
TOM BLYTH - a}
NOTARY PUBLIC
STATE OF COLORADO
Notary Public
My Commission Expires July 23,2014
My Commission Expires: 7./..<L7,„46)./5.-
I
111111 IIIII 111111 IIIII 111111 III 1111111 III IIIII IIII IIII
7of44S 2
R 0.00 01 12:08P W 0.00C0
4 Steve MorenooClerk& Recorder
act//- 2J5c
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