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Home My WebLink About20111205.tiff O% O RESOLUTION RE: ACTION OF THE BOARD CONCERNING EXTENSION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - LOT 4, SW1/4 NW1/4, S4, T8N, R59W WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, Weld County is the owner of vast mineral lands located in Weld County, Colorado, and WHEREAS, on March 30, 2011, Noble Energy, 1625 Broadway, Suite 2200, Denver, Colorado 80202, submitted a request to extend the lease of 85.07 net mineral acres, more or less, described to-wit: Lot 4, SW1/4 NW1/4, Section 4, Township 8 North, Range 59 West of the 6th P.M., Weld County, Colorado, and WHEREAS, Weld County reviewed the request submitted by Noble Energy, to extend the lease on the above-described mineral acreage for $37.00 per net mineral acre, for a total sum of $3,147.59, together with a rental fee of one dollar($1.00) per net mineral acre, which is to run for a period of six (6) months, commencing at twelve o'clock noon on October 27, 2011, and ending at twelve o'clock noon on April 27, 2012, and the Board determined it would like to continue the matter to April 25, 2011, at 9:00 a.m., in order to allow adequate time for the Board to conduct a work session on the matter, and WHEREAS, on April 25, 2011, after review, the Board deemed it advisable to continue the matter to May 16, 2011, at 9:00 a.m., in order to allow Bruce Barker, County Attorney, adequate time to further discuss the matter with Noble Energy, and WHEREAS, on May 16, 2011,the Board reviewed the modified request submitted by Noble Energy, to extend the lease on the above-described mineral acreage for $375.00 per net mineral acre, for a total sum of$31,986.32, together with a rental fee of one dollar ($1.00) per net mineral acre, which is to run for a period of six (6) months, commencing at twelve o'clock noon on October 27, 2011, and ending at twelve o'clock noon on April 27, 2012. WHEREAS, after review, the Board deems it advisable to deny said modified extension request and direct staff to publish a notice soliciting bids on said parcel following expiration of the current lease, if not held by production. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the modified request submitted by Noble Energy, to extend the lease on the above-described mineral acreage for$375.00 per net mineral acre, for a total sum of$31,986.32, together with a rental fee of one dollar ($1.00) per net mineral acres, which is to run for a period of six (6) months, commencing at twelve o'clock noon on October 27, 2011, and ending at twelve o'clock noon on April 27, 2012, be, and hereby is, denied, and staff is directed to publish a notice soliciting bids on said parcel following expiration of the current lease, if not held by production. I11111111111111111111111111111111111 III 11111111111II Noble 2011-1205 3770907 05/27/2011 12:30P Weld County, CO - I t t LE0207 1 of 2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder RE: EXTENSION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - LOT 4, SW1/4 NW1/4, S4, T8N, R59W PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 16th day of May, A.D., 2011. BOARD OF COUNTY COMMISSIONERS WELD C UNTY, COL RADO ATTEST: � ' �.. Bar a Kirkmeyer air !`k Weld County Clerk tot � Wq v Sean P. Co ay, Pro-Tem BY: Deputy Clerk to the Boar: Wil F. Ga . AP OV ofI vid E. Long yU - i�—� Long n y Attorney c- JJJ, � r c. vh4 (LA-- Douglas Rademacher Date of signature: 2.3//1 1111111111111111 11111111 3770907 05/27/2011 12:30P Weld County, CO 2011-1205 2 of 2 R 0.00 0 0.00 Steve Moreno Clerk& Recorder LE0207 Esther Gesick From: Esther Gesick Sent: Wednesday, May 18, 2011 9:40 AM To: cmoore@nobleenergyinc.com Cc: Bruce Barker; Monica Mika; Esther Gesick Subject: RE: Extension Requests Curt, I'm sorry I didn't have a more favorable outcome to report, but thanks for the direction. I'll work on getting the check issued and send that your way as soon as possible, and then we'll send all of the corresponding paperwork once everything is signed and recorded. Please let me know if I can be of any further assistance! Esther E. Gesick Deputy Clerk to the Board/Office Manager 915 10th Street Greeley, CO 80631 tel: (970)336-7215 X4226 Iet1 -1011 W EIACtiCO N Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication.Any disclosure,copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: cmoore@nobleenergyinc.com [mailto:cmoore@nobleenergyinc.com] Sent: Wednesday, May 18, 2011 9:30 AM To: Esther Gesick Subject: RE: Extension Requests Esther, Please send the check to my attention at 1625 Broadway, Suite 2200, Denver, CO 80202. Thanks, Curt Moore Land Supervisor 303-228-4062 (Denver) 303-228-4285(fax) cmoore@nobleenergyinc.com From: Esther Gesick<egesick@co.weld.co.us> To: "cmoore@nobleenergyinc.com"<cmoore@nobleenergyinc.com> Cc: Bruce Bather<bbarker@co.weld.co.us>,Esther Gesick<egesick@co.weld.co.us>,Barbara Kirkmeyer<bkirkmeyer@co.weld.co.us>,Sean Conway <sconway@co.weld.co.us>,William Garcia<WGarcia@co.weld.co.us>,Dave Long<dlong@co.weld.co.us>,Douglas Rademacher <DRademacher@co.weld.co.us>,Monica Mika<mmika@co.weld.co.us> Date: 05/16/2011 10:43 AM Subject: RE:Extension Requests (;?6//_/d^;��/ 1 Hello Curt, I just returned from the Board meeting with the following outcome: • 1) Accept Request of Noble Energy for Extension of Oil and Gas Lease-Lot 1,55,T8N, R59W 2) Accept Request of Noble Energy for Extension of Oil and Gas Lease-SE1/4 NE1/4,55,TSN,R59W `n 3) Accept Request of Noble Energy for Extension of Oil and Gas Lease-51/2 51/2 NW1/4,55,T8N, R59W N 4) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2 NE1/4, Pt. N1/2 NE1/4,SE1/4 NW1/4, Pt. NE1/4 NW1/4,$6,TSN, R59W N. 5) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4 S8,T8N, R60W N' 6) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-E1/2 NW1/4,58,T8N, R60W N 7) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4,517,TSN, R60W 8) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NW1/4,S20,T8N, R60W • 9) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-SW1/4,515,T8N, R60W N 10) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-51/2 SE1/4,521,T9N, R60W N, 11) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2,527,T9N, R60W 12) Deny Request of Noble Energy for Extension of Oil and Gas Lease-sA/1/2 SE1/4,520,T9N, R60W 13) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-SE1/4,530,T9N, R60W N. 14) Withdraw Request of Noble Energy for Extension of Oil and Gas Lease-NE1/4,531,T9N, R60W N 15) Deny Request of Noble Energy for Extension of Oil and Gas Lease-Lot 4,SW1/4, NW1/4,54,T8N, R59W 16) Deny Request of Noble Energy for Extension of Oil and Gas Lease-51/2,S8,T8N, R59W Bruce Barker and I explained the logic for the 1/6 bonus amount and the potential for assignment to ensure proper spacing; however,the discussion came down to the fact that the proposed extension amounts(on the larger parcels specifically)did not meet the current minimum of$400.00, let alone recent auction amounts which have gone as high as$4,026 per acre. Basically,the Board moved to deny all but the three 40-acre extension requests, but asked that I express that Noble still has the option to submit subsequent extension requests on the remaining parcels at the minimum of$400.00 per acre,or higher. As it currently stands, Noble previously paid$111,487.33,the three lease extensions granted today total$47,161.68,and I need to issue you a refund in the amount of$64,325.65. I will finalize the Resolutions for all 16 action items,record the three that were awarded,forward signed copies of everything and include the refund check as soon as all of the paperwork is complete. If you have any questions, please don't hesitate to contact me. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 915 10th Street Greeley, CO 80631 tel: (970)336-7215 X4226 fy • WEE!2@O N1r u Confidentiality Notice:This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged,confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure,copying,distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: cmoore@nobleenergyinc.com (mailto:cmooreenobleenergvinc.coml Sent: Monday, May 16, 2011 5:43 AM To: Esther Gesick Subject: RE: Extension Requests 2 Hi Esther, We can't justify increasing our offer on the other 8 leases so you're correct-we'll remove them from our extension offer and focus on the remaining 8 leases on the revised Exhibit A. Please let me know if there is anything further you need with respect to our revised offer- I'll look forward to hearing the results. Regards, Curt Moore Land Supervisor 303-228-4062 (Denver) 303-228-4285 (fax) cmoore@nobleenergyinc.com From: Esther Gesick<egesick@co.wekl.co.us> To: "cmoore©nobleenergyinc.com"<cmoore@nobleenergyinc.com> Date: 05/13/2011 03:40 PM Subject: RE:Extension Requests Hi Curt, I just want to make sure I'm understanding. The new Exhibit A only contains 8 of the 16 leases. What is your intension for the remaining 8 that are now unlisted? Esther E. Gesick Deputy Clerk to the Board/Office Manager 915 10th Street Greeley, CO 80631 tel: (970)336-7215 X4226 14.11 .2011 WEL ' .e1OUN Ty Confidentiality Notice:This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged,confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure,copying,distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: cmoore@nobleenergyinc.com lmailto:cmoore©nobleenergvinc.com] Sent: Friday, May 13, 2011 11:28 AM To: Esther Gesick Cc: Joe Lorenzo; dpadgett@nobleenergyinc.com Subject: Re: Extension Requests Esther, Please see Noble's attached letter dated May 13, 2011 and the attached Exhibit A Lease Schedule referencing Noble's supplemental bid for certain Weld county lease extensions. As we discussed, the bid comprises a$375 per net mineral acre offer which equates to 1/6 of the$2250 per net mineral acre amount that Noble paid for 1120 net acres at Weld County's March lease sale. We believe paying 1/6 of the$2250 per acre amount coincides with the six month extension being 1/6 of the three year primary lease term. 3 Please contact me if you need anything further regarding this matter. Curt Moore Land Supervisor 303-228-4062 (Denver) 303-228-4285 (fax) cmoore@nobleenergyinc.com From: Esther Gesick<egesick@co.weld.co.us> To: "cmoore@nobleenergyinc.com"<cmoore@nobleenergyinc.com> Cc: Bruce Barker<bbarker@co.weld.co.us> Date: 05/13/2011 09:20 AM Subject: Extension Requests Good Morning Curt, I'm in the process of proofing the Agenda and Draft Resolutions for Monday and was wondering if Noble reps have come to a consensus on the counter-proposal for the extension requests. As previously discussed, I will need your letter and revised Exhibit A at some point this morning in order to draft Resolutions for everyone's consideration on Monday. We can sort out the money aspect of it all after a final decision has been made. Thanks! Esther E. Gesick Deputy Clerk to the Board/Office Manager 915 lath Street Greeley, CO 80631 tel: (970)336-7215 X4226 1 $41 -10II l'y Wrl o NTT u Confidentiality Notice:This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged,confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure,copying,distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 4 1825 Broadway noble Suite 2000 energy Denier,CO 800202 Tel:303.228.4000 Fax 303.228.4280 v.ww.nobleenecgytnc.can May 13,2011 Weld County,Colorado c/o Board of County Commissioners P.O.Box 758 Greeley,CO 80632 RE: Weld County Oil and Gas Leases Dated October 27,2008 Weld County,Colorado Ladies and Gentlemen: Noble Energy, Inc. ("Noble") is the current leasehold owner of the referenced Weld County Oil and Gas Leases, as described in Exhibit "A" ("Leases"). The Leases are due to expire at twelve o' clock noon on October 26,2011. Noble previously submitted on March 14,2011 written application for extensions of the Leases under the terms provided for in Paragraph 24. The previous offer for the six(6)months extension from October 26, 2011, included a total bonus payment of$109,393.83, which sum represented one-third of the original bonus, plus $2,093.50 as the cumulative rental fees for the term of the extension. Noble previously submitted a check in the amount of$111,487.33. By this letter,Noble wishes to supplement its original offer for certain leases and respectfully submits the attached Exhibit A that has been amended to reflects $375 per net mineral acre offer for each lease shown. Exhibit A reflects a Total Amended Bonus Offer of$396,116.00 for the leases shown. Noble makes this supplemental offer with the understanding that Weld County will administratively approve assignments of the I Paces during the extended term. The royalty for the extended terms will remain the same. Should Weld County accept this offer Noble will remit a supplemental check in the amount of $284,628.67 ($396,116.00 - $111,487.33 = $284,628.67) within seven (7) days of notice of acceptance from Weld County. Please contact me at(303)228-4062 if you have any questions. Very truly yours, NOBLE ENERGY,INC. C� Land Supervisor 1 :EA . ■ 888 £ ' ' | ' ! ! $ - L ; §n § 5 H a a a : 8 5 8 ! } , \ AAP r4 : f n.� . . . . , 88 w ! f r ! ! [ \ ) q / & ! | | ; | ; | ! - | . . . . ! ! ! ! \ ; ] ) ) ( . , ! gs $ $ Al :9 V; r ; LI LI , B B : 8 B ! 0 ! ! | ! ! ! | ! | cri� 2 ffff / § f \ Ka. _ | ( c 11 ! | IIIIIII , ■ § | § § § § § | } E 333 33 1111 t § \ $ fs Iz! I \ \ , ! ■ , ! 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Box 758 Greeley, CO 80632 RE: Weld County Oil and Gas Leases Dated October 27, 2008 Weld County, Colorado Ladies and Gentlemen: Noble Energy, Inc. ("Noble") is the current leasehold owner of the referenced Weld County Oil and Gas Leases, as described in Exhibit"A" ("Leases"). Enclosed for your reference is a copy of the Leases as well as a copy of the Assignment from Transcontinent Oil Company, the lessee,to Petro-Canada Resources recorded at Reception No. 3601828, and the Assignment from Petro-Canada, successor lessee, to Noble recorded at Reception No. 3678594. The Leases are due to expire at twelve o' clock noon on October 26, 2011. Noble is hereby making written application for an extension of the Leases under the terms provided for in Paragraph 24. The extension will be for six (6)months from October 26,2011,with a total bonus payment of$109,393.83, which sum represents one- third of the original bonus,plus $2,093.50 as the cumulative rental fee for the term of the extension. Enclosed is Noble's check in the amount of$111,487.33. The royalty for the extended terms will remain the same. Your earliest consideration of this extension request is appreciated. Please call me at (303) 228-4062 if you have any questions. Very truly yours, NOBLE ENERGY, INC. Curt oore Land Supervisor or Mans Se.h.uzs+rr 3o3- zzg- yV75 Page 1 of 1 INVOICE NUMBER INVOICE DATE DESCRIPTION DISCOUNT NET AMOUNT 031511WELD 15-MAR-11 WATTNBRG BONUS 0.00 111,487.33 0. 00 111,487.33 NOBLE ENERGY, INC. 03/16/11 2011010240 124102 P.O. BOX 909 110W BROADWAY $****111,487 .33 DATE CHECK NO. ACCT. NO. ARDMORE,OKLAHOMA 73402 (800)220-5824 TOTAL 0 RECEIPT DATE 18 -1 I NO. 85816 o -o cN RECEIVED FROM JJ o��1� �vLe+ y' , 141C' - 0 5 ADDRESS J c a) 20 as a Au`E-imi e'4e yr<t -1-Av,.:so i d7t L'r i ,1-th d evil, $ III 141 97• 3___.) ' U 0 0 tQ7 u FOR �"1t0IV $i Extensci 7v ((nmo} (J" 1(0�l.tc,,c�rcl� " " tE 1, LEO'o' -0 . m i.e ,LE6,:Lv,x'40!r, LEC% j,L_E6.�5 y HOW PAID LE4'127 L_EU253. LE 7,j.4x 18 CcASN *I7701/010 6190 ``!,y a � CHECK /aim1/ / Ji 7 .J 3 BY r S 1e� T MONEY ORDER Hello