HomeMy WebLinkAbout20110679.tiff RESOLUTION
RE: AUTHORIZE OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY
WELD COUNTY, COLORADO, AND AUTHORIZE CHAIR TO SIGN - N1/2:SW1/4,
S27, T7N, R63W
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 Department of Purchasing was authorized to solicit bids for lease of a
portion of said mineral acres not currently leased, and
WHEREAS, Baseline Minerals, Inc., 518 Seventeenth Street, Suite 1050, Denver,
Colorado 80202, submitted the high bid to lease 480.0 net mineral acres, more or less,
described to-wit:
N1/2:SW1/4 of Section 27, Township 7 North,
Range 63 West of the 6th P.M., Weld County,
Colorado
WHEREAS, Weld County desires to accept the high bid offer submitted by Baseline
Minerals, Inc., to lease the above described mineral acreage for$2,250.00 per net mineral acre,
for a total sum of$1,080,000.00, together with an annual rental fee of ONE DOLLAR ($1.00) per
net mineral acre, which lease is to run for a period of three (3) years, commencing March 14,
2011, and ending at 12:00 noon on March 14, 2014, unless otherwise held, as stated in the
lease agreement which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the high bid offer of Baseline Minerals, Inc., be, and hereby is,
accepted for a period of three (3) years.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said lease.
LC. ‘. iz e Lc _A.r.,az
2011-0679
3 - 3D- I ( LE0289
OIL AND GAS LEASE - N1/2:SW1/4, S27, T7N, R63W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 14th day of March, A.D., 2011.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLO DO
ATTEST:
1j arbara Kirkmeyer, air
Weld County Clerk to t B.
Pitc 6T WGonw7rern
BY: C�!// �oIDeputy Clerk to the :r- I-/ ti0
Willi . Garcia
/ E O FORM:
D vid . Long
County Attorney Ckki^
Douglas demache
Date of signature: 3/as
2011-0679
LE0289
WELD COUNTY LARGE-TRACT OIL AND GAS LEASE
Containing 480.0 acres, more or less:
Containing 480.0 net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 14th day of March, 2011, made and entered into by and
between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by
and through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its
respective interests, do BOARD OF COUNTY COMMISSIONERS, 915 10TH STREET, P.O. BOX 758,
GREELEY, CO 80632, hereinafter called Lessor, and B 4$Cl;ne Al;Bent 518
Seventeen Streea-, Sit+e 1050, Denver, CO 50202.
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
$ es-c; °' 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$480.00, computed at the rate of$1.00, per mineral
acre or fraction thereof per year, and the following consideration:
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 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:
DESCRIPTION OF LAND SECTION TOWNSHIP RANGE
N1/2 : SW1/4 27 7N 63W
TO HAVE AND TO HOLD said land, and all the rights and privileges granted hereunder to Lessee
until the hour of twelve o'clock noon on the 14th day of March, 2014, as primary term, and so long
thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee is
diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and
conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is
no delay or cessation thereof for a greater period than sixty consecutive days unless an extension in
writing is granted by Lessor; provided that such drilling or reworking operations are commenced during
said primary term or any extension thereof or while this lease is in force by reason of production of oil and
gas or either of them, or that such reworking is commenced within sixty days upon cessation of
/AD)l - 0&79
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production for the purpose of re-establishing the same, and provided further that such production is
commenced during such primary term or any extension thereof, or while this lease is in force by reason of
such drilling or reworking operations or other production.
EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such
exploration does not interfere with rights granted herein.
In consideration of the premises, the parties covenant and agree as follows:
1. RENTAL - If this lease is extended for an additional term as provided for in the EXTENSION
paragraph hereof, Lessee shall pay to Lessor the sum of One Dollar($1.00) per acre for the land
covered hereby as delayed rental for the term of the extension. Rentals set at the time of
established production shall be paid during the remaining life of this lease, annually, in advance,
on or before each anniversary date hereof. There shall be no refund of unused rental.
2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and
Lessee shall pay to Lessor as royalty, in addition to the rentals provided, but except for products
used on the leased land, unavoidably lost or flared on the leased land, with approval of Lessor,
the following:
A. On oil, 20% of the oil produced and saved from the leased land.
At the option of Lessor, and with sixty(60)days' notice to Lessee, Lessor may take its royalty
oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land,
free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but
Lessee shall not in such case be required to provide free tankage for any such oil for a longer
period than one month after the same is run into tanks. With sixty (60) days' notice to
Lessee, Lessor may cease taking oil royalty in kind. When paid in cash, the royalty shall be
calculated upon the fair market value of the oil at the well which shall not be deemed to be
less than the price actually paid to Lessee at the well by the purchaser thereof; and in no
event shall the royalties be based upon a market value at the well less than the posted price
in the field for such oil, or in the absence of a posted price in the field for such oil, upon a
market value at the well less than the prevailing price received by other producers in the field
for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks.
B. On gas, including casing head gas or other gaseous substance, 20% of the fair market
value at the well or of the price received by Lessee at the well, whichever is greater, of all gas
produced and sold from the leased land or utilized off the land by Lessee. A copy of all
contracts for sale of gas shall be furnished to Lessor. Where gas is sold under contract that
has been approved by Lessor, the fair market value of such gas for determining the royalties
payable hereunder shall be the price at which such gas is sold under such contract. No
approval by Lessor of the terms of any such agreement shall operate to make Lessor a party
thereto or obligate it thereunder in any way. At the option of Lessor, and with sixty(60)days'
notice to Lessee, Lessor may take its royalty in kind. With sixty(60) days' notice to Lessee,
Lessor may cease taking gas royalty in kind.
C. All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs
shall not directly or indirectly reduce the royalty payments to Lessor. Except that marketing
costs for Lessor's in-kind royalty shall be borne by Lessor.
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D. If Lessor owns a lesser interest in the oil and gas deposits of the above-described land than
the entire and undivided fee simple estate, then the royalties and rentals herein provided
shall be paid to Lessor only in the portion which its interest bears to the whole and undivided
fee, but no refund of any bonus consideration shall be made by Lessor hereunder.
3. RECORDS- Lessee agrees to keep and to have in possession complete and accurate books and
records showing the production and disposition of any and all substances produced on the leased
land and to permit Lessor, at all reasonable hours, to examine the same, or to furnish copies of
same to Lessor upon request along with purchaser's support documentation. Lessor will not be
unreasonable with requests. All said books and records shall be retained by Lessee and made
available in Colorado to Lessor for a period of not less than five years.
4. MEASUREMENTS -All production shall be accurately measured using standards established by
the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all
measuring devices shall be tamper proof as nearly as possible. Oil royalties due within the terms
of this lease shall be calculated on actual and accurate measurements within API standards
unless a different means of measurement, subject to Lessor's approval, is provided.
5. PAYMENTS AND REPORTS - All payments and reports due hereunder shall be made on or
before the day such payments and reports are due. Nothing in this paragraph shall be construed
to extend the expiration of the primary term hereof.
Oil royalty payments and supporting documents shall be submitted prior to the last day of the
month following each month's sale of production, and gas royalty payments and supporting
documents shall be submitted prior to the last day of the second month following each month's
sale of production.
All payments shall be made by cash, check, certified check, or money order. Payment having
restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by
Lessor. A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph
herein.
6. PENALTIES - A penalty shall be imposed for, but not limited to late payments, improper
payments, operational deficiencies, violation of any covenant of this lease, or false statements
made to Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law
and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. A
penalty schedule shall be prepared by Lessor and shall become effective immediately after public
notice. Said schedule may be changed from time to time after public notice.
7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all
laws, rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the
administration of lands and minerals owned by the County of Weld, and to laws, rules and
regulations governing oil and gas operations in Colorado. Violations shall result in penalties as
provided for by law or as set forth in the aforementioned schedule or shall, at the option of
Lessor, result in default as provided hereinafter.
8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided
herein, surrender this lease insofar as the same covers all or any portion of the land herein
leased and be relieved from further obligations or liability hereunder with respect to the land so
surrendered; provided that this surrender clause and the option herein reserved to Lessee shall
cease and become absolutely inoperative immediately and concurrently with the institution of any
suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of
its terms expressed or implied. In no case shall any surrender be effective until Lessee shall
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have made full provision for conservation of the leased products and protection of the surface
rights of the leased land.
9. ASSIGNMENTS-
A. Lessee, upon payment of a $25.00 fee and prior written consent of Lessor, shall have the
right to assign the entire leasehold interest of said Lessee in all or part of the land covered
hereby. Prior to written approval by Lessor of assignment of this lease, Lessee (assignor)
shall not be relieved of its obligations under the terms and conditions herein. An assignment
shall not extend the term of this lease.
B. If any assignment of a portion of the land covered hereby shall be approved, a new lease
shall be issued to the assignee covering the assigned land, containing the same terms and
conditions as this lease, and limited as to term as this lease is limited, and the assignor shall
be released and discharged from all further obligations and liabilities as to that portion so
assigned.
C. Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said
interests will not be recognized or approved by Lessor, and the effect of any such
assignments will be strictly and only between the parties thereto, and outside the terms of this
lease: and no dispute between parties to any such assignment shall operate to relieve
Lessee from performance of any terms or conditions hereof or to postpone the time therefore.
Lessor shall at all times be entitled to look solely to Lessee or his assignee shown on its
books as being the sole owner hereof, and for the sending of all notices required by this lease
and for the performance of all terms and conditions hereof.
D. Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting
this lease should be filed with the Lessor.
10. OVERRIDING ROYALTY - Any and all reservations or assignments or overriding royalties shall
be subject to approval by Lessor. The total of said overriding royalties shall not exceed five
percent (5%), including any overriding royalty previously provided for unless production exceeds
a monthly average of fifteen (15) barrels per day or ninety thousand cubic feet of gas per day(90
MCF/D). In the event production drops to this amount or less, any overriding royalties which
exceed five percent (5%) may be suspended. Lessor's approval of a reservation or assignment
of an overriding royalty shall not bind Lessor for payment of said overriding royalty and shall not
relieve Lessee of any of its obligations for payment of royalties to Lessor as provided by
ROYALTY paragraphs herein.
11. OFFSET WELLS- Lessee agrees to protect the leased land from drainage by offset wells located
on adjoining lands not owned by Lessor, when such drainage is not compensated for by counter-
drainage. It shall be presumed that the production of oil and gas from offset wells results in
drainage from the leased land, unless Lessee demonstrates to Lessor's satisfaction, by
engineering, geological, or other data, that production from such offset well does not result in
such drainage, or that the drilling of a well or wells on the leased land would not accomplish the
purposes of protecting the deposits under the leased land. Lessor's decision as to the existence
of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender
this lease as to any such undeveloped acreage as designated by Lessor.
12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee
shall proceed with reasonable diligence to develop said land at a rate and to an extent
commensurate with the economic development of the field in which the leased land lies.
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13. POOLING CLAUSE- Lessee may at any time or times pool any part or all of said land or lease or
any stratum or strata with other lands and leases, stratum or strata, in the same field so as to
constitute a spacing unit to facilitate an orderly or uniform well-spacing pattern or to comply with
any order, rule, or regulation of the State or Federal regulatory or conservation agency having
jurisdiction. Such pooling shall be accomplished or terminated by filing of record a declaration of
pooling, or declaration of termination of pooling, and by mailing or tendering a copy to Lessor, or
to the depository bank. Drilling or reworking operations upon or production from any part of such
spacing unit shall be considered for all purposes of this lease as operations or productions from
this lease. Lessee shall allocate to this lease the proportionate share of production which the
acreage in this lease included in any such spacing unit bears to the total acreage in said spacing
unit.
14. UNITIZATION - COMMUNITIZATION - In the event Lessor permits the land herein leased to be
included within a communitization or unitization agreement, the terms of this lease may be
deemed to be modified to conform to such agreement. When only a portion of the land under this
lease is committed by an agreement, Lessor may segregate the land and issue a separate lease
for each portion not committed thereunder; the term of such separate lease shall be limited as to
the original term of this lease. The terms of the lease on that portion remaining in the unit shall
be deemed to be modified to conform to such agreement. Non-producing leases shall terminate
on the first anniversary date of the lease following the termination date of the unit or part thereof
modifying the lease, but in no event prior to the end of the primary term of the lease or the
extension term of the lease.
15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders, operate and
produce all wells upon the leased land so long as the same are capable of producing in paying
quantities, and shall operate the same so as to produce at a rate commensurate with the rate of
production of wells on adjoining lands within the same field and within the limits of good
engineering practice, except for such times as there exist neither market nor storage therefore,
and except for such limitations on or suspensions of production as may be approved in writing by
Lessor. Lessee shall be responsible for adequate site security on all producing properties.
16. SHUT-IN WELLS - If Lessee shall complete a well on the leased land productive of gas and
Lessee is unable to produce such gas due to a lack of suitable market therefore, Lessor may
grant Lessee suspension of his obligations to produce hereunder until a suitable market for such
gas can be found, and during any such suspension period, it shall be deemed that gas is being
produced hereunder in paying quantities. Except, however, that beginning on the anniversary
date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to
Lessor a shut-in royalty equal to $2.00 per acre of the lease per annum in addition to the annual
rental. The minimum amount of such shut-in royalty payment shall be$240. Each year's shut-in
royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during which the
well begins production. The maximum extension of the lease, due to the existence of a shut-in
well, shall be five years beyond the extension term as described in the EXTENSION paragraph
herein. The granting of any further extensions shall be at the sole option of Lessor.
17. OPERATIONS - No exploration, drilling or production operation, including permanent
installations, shall be within 200 feet of any existing building or other improvement, including
water well or reservoir,without the written permission of the owner of said improvements. Lessee
shall keep a correct log of each well drilled hereunder, showing by name or description the
formations passed through, the depth at which each formation was reached, the number of feet of
each size casing set in each well, where set, and the total depth of each well drilled. Lessee,
within thirty(30)days after the completion or abandonment of any well drilled hereunder, shall file
in the office of Lessor a complete and correct log of such well, together with a copy of the electric
log and the radioactivity log of the well when such logs, or either of them, are run; and also a copy
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of all drill stem test results, core records and analyses, record of perforations and initial
production tests, if any. If any of the information required by this paragraph is contained in
reports required to be filed with the Oil and Gas Conservation Commission of Colorado, the
requirements of this paragraph for such information may be satisfied by such filing with said
Commission, except for copies of the reports as are required by the following paragraph, and
provided that all such information is immediately available to Lessor. Any proprietary information
so submitted shall not be subject to public inspection under Colorado law.
Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface
casing to protect the fresh water wells of the area.
18. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the
location of each drill site at least two weeks prior to commencing drilling operations thereon.
Lessee shall notify Lessor before commencing to plug and abandon any well by copy of Lessee's
request for approval or sundry notice of intent to plug and abandon.
19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing
crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No
operations shall be commenced on the land hereinabove described unless and until Lessee shall
have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure
the payment for such damages as may be caused by Lessee's operations on said land and to
assure compliance with all the terms and provisions of this lease, the laws of the State of
Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for
the life of production of any well.
20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on said
land, other than drilling equipment, nor draw the casing from any well unless and until all
payments and obligations currently due Lessor under the terms of this lease shall have been paid
or satisfied. Any machinery, equipment or fixtures left on this land for a period of more than six
(6)months after the expiration hereof, shall automatically become the property of Lessor.
21. OTHER DISCOVERY- Should Lessee discover any valuable products other than oil and gas, on
or within the leased land, Lessee shall within seven (7) days report such discovery to Lessor, in
which event Lessee and Lessor may negotiate a provision for production of such discovery.
22. WATER - This lease does not grant permission, express or implied, to Lessee for water
exploration, drilling, or establishing water wells without the written permission of the surface
owner. If Lessor is the surface owner, said permission shall not be unreasonably withheld. If
Lessee desires to establish or adjudicate any water right for beneficial use on the leased land,
any such adjudication or application shall be in the name of Lessor if Lessor is the surface owner.
The same shall apply to any non-tributary water rights established on the leased land which may
be put to beneficial use off said land.
23. DEFAULT - 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 governing
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 of 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 within thirty (30) days after the mailing of such notice, and if Lessee does not
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request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled
by operation of this paragraph without further action by Lessor, or further notice to Lessee.
24. EXTENSION - If Lessee fails to make discovery of oil and gas, or either of them, in paying
quantities during the primary term hereof, or during drilling operations commenced during the
primary term hereof, Lessee may make written application to Lessor for an extension of this
lease. The granting of such extension shall be at the sole option of Lessor, according to the
following conditions:
A. No lease term will be extended for more than six(6)months from the original expiration date.
B. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a
minimum bonus of Ten Dollars($10.00)per acre.
C. The Lessee must pay to the Lessor the sum of One Dollar($1.00) per acre leased as delayed
rental for the term of the extension.
D. That the royalty will remain the same.
25. HOLD HARMLESS - 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.
26. CONDEMNATION - If the leased land shall be taken in any condemnation proceeding, this lease
shall automatically terminate as of the date of taking. The award for such condemnation shall be
paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves,
in which event of such specific award(s)shall be paid to Lessor in lieu of royalty
lost by virtue of the condemnation. Improvements shall be removed by Lessee per terms in the
SETTLEMENT paragraph herein. If only a portion of the leased land is taken by condemnation,
Lessor may, at its option, terminate this lease or terminate only that portion of the lease so taken.
27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not
limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience
or loss caused by errors which may occur. Lessee shall notify Lessor immediately upon
discovery of any errors or discrepancy whatsoever.
28. ARCHAEOLOGY- Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric
or historic resources of any kind on Weld County lands as provided by law. These resources
include, but are not limited to, all artifacts of stone, wood or metal, pictographs, structures, and
bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the
State of Colorado Archaeologist immediately.
29. DEFINITIONS-
A. "Gas" as used herein shall mean all gases (combustible and noncombustible), including but
not limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium.
B. "Oil and gas" as used herein shall include all substances produced as by-products therewith,
including But not limited to sulfur.
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C. "Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of
either of them sufficient to pay for the current cost of producing same.
30. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding
upon the heirs, legal representatives, successors or assigns of Lessee; but no sublease or
assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has
been approved by Lessor as explained in the ASSIGNMENTS' paragraph provided.
31. WARRANTY OF TITLE - 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. There
shall be no obligation on Lessor's part to purchase new or supplemental or other title papers, nor
to do any curative work in connection with title to the subject lands. All abstracts of title, whether
new or supplementary, obtained by Lessee and covering the subject lands shall become the
property of and be delivered to Lessor after Lessee has completed its title examination and
curative work, subject, however, to the right of Lessee to use such abstracts upon request at any
time during the term of the lease.
32. FORCE MAJEURE - 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).
M:\CTB\AGPENDING12011\031411\Lease_27-07-63_N2,SW 4.doc
(Revised 1/2011)
AMEN VIII Olt IIIIII III IIIIII IIIIII III VIII IIII IIII
3758315 03/25/2011 10:41A Weld County, CO
8 of 9 R 0.00 0 0.00 Steve Moreno Clerk& Recorder
Large-Tract Oil and Gas Lease
Page 9
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: � �- - � � BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the B#'d WELD COUNTY, COLORADO
B .it (d `piu' �,�'-_ % 2
Deputy Clerk to the Bdarc SC-cis air, Board of Count Commissi ers
7 , `. LESSEE: MAR 1/ ZOj�
ato tral s-
By:
STATE OF
1Gra-/ _ sWts
ss
COUNTY OF /U 1)
{E /
The foregoing instrument was acknowledged before me this // day of [ air ,
20L, by itZ1911 b( 'M a/7W . {' '` 1 v7 lL4."Cc Jtl Igo ft.ci ey1,
Witness y . d and offs ' Ise I.
Notary? li
My Commission Expires:
Notary Public
State of Colorado
.;ommisstonEtpdesAugust 15,2014
c7‘2O//—o. 79
Le-40a9
M:\CTB\AGPENDING\2011\031411\Lease_27-07-63_N2,SW 4.doc
(Revised 1/2011)
161 DIN 111111 IIIIII III 1kIIItIIt
3758315 03125/2011
9 of 9 R 0.00 D 0.00 Steve Moreno Clerk&Recorder
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COURTESY BID FORM
FEBRUARY 10T", 2011 ***Fax to 970-336-7226 % Purchasing/Marcia Walters or
BID REQUEST NO. B1100026 email it to mwaltersOco.weld.co.us.***
RE: OIL AND GAS LEASES
Weld County, Colorado will receive sealed bids for the gas and oil leases on the parcels shown below until:
Wednesday, March 14`h, 2011 8:30 a.m. in the office of the Director of Finance & Administration
!Purchasing Department), 915 10th Street, Greeley CO 80631 **Notice Purchasing is on the 3rd floor of the
Centennial Center*. The opening of the sealed bids and an auction will be held in the Weld County Public Board
Meeting shortly after 9:00 a.m. on the same day (on the 1s'floor).
#1 E1/2 ( ) Section 28, Township 5N, and Range 61W containing 320.00 acres
#2 NW% NE% ( ) Section 10, Township 3N, and Range 63W containing 40.00 acres
#3 SWY.NE% ( ) Section 10, Township 3N, and Range 63W containing 40.00 acres
#4 E% NE% ( ) Section 10, Township 3N, and Range 63W containing 80.00 acres
#5 SWY. ( ) Section 26, Township 3N, and Range 63W containing 160.00 acres
#6 N% SE% NEY. ( ) Section 23, Township 7N, and Range 63W containing 20.00 acres
#7 S'% SEY. NEY. ( ) Section 23, Township 7N, and Range 63W containing 20.00 acres
#8 W% NE% ( ) Section 23, Township 7N, and Range 63W containing 80.00 acres
#9 NEY< NE% ( ) Section 23, Township 7N, and Range 63W containing 40.00 acres
#10 NW% ( ) Section 23, Township 7N, and Range 63W containing 160.00 acres
#11 SEY. ( ) Section 23, Township 7N, and Range 63W containing 160.00 acres
#12 SWY. ( ) Section 23, Township 7N, and Range 63W containing 160.00 acres
a7
1/-#13 NW SWY. ( ) Section 83, Township 7N, and Range 63W containing 480.00 acres
Please fill this courtesy bid form out and send back to the Weld County Purchasing Dept. This lets us know
what companies are interested in bidding on the leases stated in the bid documents. Please mark the (
!Example (X)1 of the parcel/parcels that you are going to bid on, then fax or email your form back to
Purchasing. Please call 970-356-4000 x4223 if you have any questions.
FIRM BY
SIGNATURE EMAIL
BUSINESS
ADDRESS TITLE
CITY, STATE, ZIP CODE DATE
TELEPHONE NO. FAX NO. TAX PAYER I.D. #
I I PLEASE MARK IF YOU WISH TO BE TAKEN OFF BIDDERS LIST
( ) PLEASE MARK WITH fX1 IF THIS IS AN ADDRESS CHANGE.
Date: March 14, 2011
W.O. # F95744
85��y
Weld County Government JOB: Oil and Gas Lease Auction TO: Baseline Minerals,Inc.
Clerk to the Board 518 Seventeenth Street
915 10th Street Suite 1050
P.O. Box 758 Denver,CO 80202
Greeley CO 80632
970-336-7215
Fax 970-352-0242
CHECK 8 DESCRIPTION UNIT PRICE , LINE TOTAL
5334502262 Bonus Amount(N2SE4NE4, 23-07-63) 45,000.00
CASH Filing Fee 10.00
5334502263 Bonus Amount(525E4NE4, 23-07-63) 45,000.00
CASH Filing Fee 10.00
5334502264 Bonus Amount(W2NE4,23-07-63) 180,000.00
CASH Filing Fee 10.00
5334502265 Bonus Amount(NE4NE4, 23-07-63) 90,000.00
CASH Filing Fee 10.00
5334502258 Bonus Amount(NW4,23-07-63) 360,000.00
CASH Filing Fee 10.00
5334502259 Bonus Amount(SE4, 23-07-63) 360,000.00
CASH Filing Fee 10.00
5334502260 Bonus Amount(SW4, 23-07-63) 360,000.00
CASH Filing Fee 10.00
5334502261 Bonus Amount(N2:SW4, 27-07-63) 1,080,000.00
CASH Filing Fee 10.00
. . ...Subtotal
Total $2,520,080.00
(it(
II o Make all checks payable to Weld County Government
Attention: County Commissioners
COLORADO THANK YOU FOR YOUR BUSINESS!
Date: March 14, 2011
W.O. # [85791]
Weld County Government JOB: Oil and Gas Lease Auction TO: Lonetree Energy and
Clerk to the Board Associates, LLC
915 10th Street 3 West Dry Creek Circle
P.O. Box 758 Littleton,CO 80120
Greeley CO 80632
970-336-7215
Fax 970-352-0242
CHECK# DESCRIPTION UNIT PRICE LINE TOTAL
0478309562 Filing Fee 10.00
0478309563 Filing Fee 10.00
0478309564 Filing Fee 10.00
0478309565 Filing Fee 10.00
0478309566 Filing Fee 10.00
0478309567 Filing Fee _... 10.00 _.
0478309568 Filing Fee 10.00
0478309569 Filing Fee 10.00.
Subtotal
Total $80.00
W I ID C
Make all checks payable to Weld County Government
Attention: County Commissioners
COLORADO THANK YOU FOR YOUR BUSINESS!
O
RECEIPT DATE 3 -NN_ 201i NO. 85790
v -0
RECEIVED FROM `�Y�( _+y„ r P „
o O ADco
�Dj RESS
n r r--- .
U ° o > FOR ti LI:U. J:02-
-O Y m w
'7-35 13 O 22 S O a 0
HOW PAID
J4-
j, (oQ� CASH -4 a(, 3
cis CHECK iho .- T�
�$
HONEY
4 � ORDER
Esther Gesick
From: Esther Gesick
Sent: Tuesday, February 01, 2011 1:21 PM
To: Ben Schuessler
Cc: Esther Gesick
Subject: RE: 7N63W
That's fine...l'll be sure to add it to the list. Thanks! (23 7-7A) 24,3w - N'. 3EVvlUE'/y ( o ) LE
- S iZz SE 7'/AJE ply(a/D/0 LE-0/6
Esther E. Gesick _ tAY/2 NE1/4 (SO 4-60/491
Deputy Clerk to the Board —
Weld County, Colorado - NE%NErQ (qo Q� LEO/G8
915 10th Street V „ - A14P/y ((tom@O LEA/&?
Greeley, CO 80631 _ SE '�y (/(cam@) 150142
(970)336-7215 X4226
(970)352-0242 (fax) — Suj'f y (I too(LCb N8
From: Ben Schuessler Jmailto:ben.schuessler(alamail.coml
Sent:Tuesday, February 01, 2011 12:31 PM
To: Esther Gesick
Subject: Re: 7N63W
ul/z :Sw/y
Esther, NM&- Lrcat84}
In addition to re-nominating 7N63W Section 27, can we also nominate section 23 lands?
Thank you,
On Wed, Jan 12, 2011 at 4:06 PM, Esther Gesick <egesick@co.weld.co.us> wrote:
Yes,but I do these on a monthly basis, so I will not start working on it until the first of February, in hopes that we may
have a few other nominations to lump together for publication. If I don't receive anything further by that time, I'll go
ahead and process just the one.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board
Weld County,Colorado
915 10th Street
Greeley,CO 80631
(970)336-7215 X4226
(970)352-0242(fax)
1
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