HomeMy WebLinkAbout20102334.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN - MATRIX ENERGY, 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, Matrix Energy, LLC, P.O. Box 271309, Fort Collins, Colorado 80527, has
requested that the bidding procedure be waived according to the policy as set forth in the Weld
County Code for parcels less than five acres, on the following described mineral acres:
A strip of land ten (10)feet in width lying immediately
north and parallel to the right-of-way of the State
Highway over and across that part of Lot Two (2) in
the NW1/4 of the NE1/4 of Section 15, Township 5
North, Range 65 West of the 6th P.M., Weld County,
Colorado, according to the subdivision of lands made
by the Union Colony of Colorado, lying north of the
State Highway and east of the canal of the Greeley
Irrigation Company, recorded at Reception No.
702599, Book 970, Page 396, on December 14,
1934, and
WHEREAS, Matrix Energy, LLC, is offering to lease the above described mineral acres,
containing 0.2 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Matrix Energy, LLC, in the amount of
TWO HUNDRED AND NO/100 DOLLARS ($200.00), is acceptable, with the further terms and
conditions being as stated in said Small Tract Oil and Gas Lease, a copy being attached hereto and
incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of Matrix Energy, LLC, to waive the bidding procedure on an Oil
and Gas Lease concerning the above described mineral acres, be, and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Matrix Energy, LLC, to lease
mineral acres, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to
sign said Small Tract Oil and Gas Lease.
C C ' 'MUM. J QA 2010-2334
LE0277 1O-13-1O
WAIVE BID PROCEDURE - MATRIX ENERGY, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 4th day of October, A.D., 2010.
BOARD OF COUNTY COMMISSIONERS
Y LD COUNT , LORADO
ATTEST: � .'— �t �ii � �\ OYS2C Au--
Do :I ss Radema her C•air
Weld County Clerk tot - :o
36 t rbara
Kirkmeyer, "r To em
BY:/
c--->
/)
Deputy Clerk G he Bo '�• �� (� ti (/"
"�ri►� / P Cp �y
A O�AS3 RM: Wi v/
am F. Garera
my ttorney EXCUSED
David E. Long
Date of signature:/WC/(.)
2010-2334
LE0277
160
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this 20'" day of September 2010, by and between
WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the
Board of County Commissioners of the County of Weld, 915 10th Street, P.O. Box 758, Greeley, CO
80632, hereinafter called Lessor, and: Matrix Energy, LLC
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$ 200.00
cash in hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements
hereinafter described, has granted, demised, leased and let, and by these presents does grant, demise,
lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for
the purpose of mining, exploring by geophysical and other methods, and operating for and producing
therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe
lines, and erection of structures thereon to produce, save and take care of said products, all that certain
tract of land situated in the County of Weld, State of Colorado, described as follows, to wit:
A strip of land crossing Lot 2 of NWNE, recorded at Book 970, Page 396
Section 15 Township 5 North, Range 65 West of the 6th P.M., Weld County, Colorado:
and containing .2 acres, more or less.
1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises
or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the
— a expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
— acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then
rc 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
- a prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one
- 00 well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
v d said land or on acreage pooled therewith, the production thereof should cease from any cause after the
—�, o primary term, this lease shall not terminate if Lessee commences additional drilling or re-working
. —as 2 operations within ninety (90) days from date of cessation of production or from date of completion of dry
mmi a g hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
rn expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is
produced from the leased premises or on acreage pooled therewith.
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees
-N that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
=6- '2 operations during the primary term. Lessee may at any time or times during or after the primary term
=c o surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
cc Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
o
v to the acreage surrendered.
mmoN 0
ri 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
C:\Documents and Settings\Owner\My Documents\MATRIX\MATRIX\2000\Weld C
2010-2334
LE-0-27 7
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. 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
9 constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to
0
different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of
125—" ; Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any
a°C part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other
Y leasehold owner.
a
=CD 11. Lessee, at its option, is hereby given the right and power at any time and from time to
m r' = time as a recurring right, either before or after production, as to all or any part of the land described herein
d o and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
N d production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
r rat) necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to
o such other land, lease or leases. Likewise, units previously formed to include formations not producing oil
q or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
c c shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
" reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
0 o theretofore been completed or upon which operations for drilling have theretofore been commenced.
si
o Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
o which includes all or a part of this lease shall be treated as if it were production, drilling or reworking
operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
—t " royalties only on the portion of such production allocated to this lease; such allocation shall be that
proportion of the unit production that the total number of surface acres covered by this lease and included
C:\Documents and Settings\Owner\Local Settings\Temporary Internet Files\Content.IE5\OB4YRZZ1\FOSmaiiTract[1].doc
(Revised 1112000)
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,
Eal 9 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.
_ cc
"Y 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and
gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
o
� c
this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
d o such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
dmail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
a N« cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date
r.v, of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does
o not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
las c o operation of the paragraph without further action by Lessor, or further notice to Lessee.
N
0 0 16. All of the provisions of this lease shall be binding upon the heirs, personal
N o o representatives, successors and assigns of Lessor and Lessee.
a 0<
—r 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
Warm N o described without the express written consent of Lessor.
C:\Documents and Settings\Owner\Local Settings\Temporary Internet Files\Content.IE5\OB4YRZZ1\FOSmallTract[1].doc
(Revised 1112000)
IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the
office affixed, and Lessee has signed this agreement, the day and year first above written.
ATTEST:
Weld County Clerk to the rr a BOARD OF COUNTY COMMISSIONERS
LL°�� WELD COUNTY, COLORADO By: Deputy Cler' o t `'oa . � air, oard of unty Commissioners
®U141 OCT 0 4 2010
�►�.��� LESSEE:
By: t ? /4
Title: C.6- (11/9ni990i7e
STATE OF COLORADO )
ss
COUNTY OF WELD )
The foregoing instrument was acknowledgeed before me this ZO-i-t day of
SC tkohCv , 20 / 0 , by OinL. LW)CCNIz_
Witness my hand and official seal. iY'P'ar j
.(RTO&aSEK .
111!
Notary Public OWL .-
OF
My Commission Expires: Iu01 Z4 Z01 2- W C0IAIISSI0NEXPIRES:
Oebaber 27,2012
I IIIIII 11111 III 1111 11111 1111 IIIII III 11111 III IIII
3723160 10/05/2010 11:12A Weld Coun 4 of 4 R 0.00 D 0.00 Steve Moreno Clerk:Recorder
C:\Documents and Settings\Owner\Local Settings\Temporary Internet Files\Content.lE5\0B4YRZZ1\FOSmallTract[1].doc
(Revised:::Ty V c?3_
MATRIX ENERGY, LLC
P.O. Box 271309
Ft. Collins,CO 80527
Phone: 970-282-1211
Fax: 970- 282-1233
N-,
September 21, 2010 f
Q
w
Weld County Clerk to the Board ;j
Esther Gesick f
PO Box 758 "'U.)
Greeley, CO 80631 ` -
RE: Two small parcels
Proposed Oil and Gas leases
Dear Ms. Gesick:
Pursuant to your e-mail, enclosed are two proposed oil and gas leases from Weld
County to Matrix Energy, LLC. Along with the oil and gas leases are two checks to cover the
consideration and bonus. If there is anything else needed in order to submit the leases
please call me at 970-282-1211 or e-mail me at matrix@frii.com. Thank you for all of your
help.
Sincerely yours 3MAT 2,7
X ENERGY, LLC
i
Dan L. Schwartz
Co-Manager
Encl.
RECEIPT DATE 9 a3-/c7 NO_ 85552
///R7ik,. /fM v RECEIVED FR0My,s / LfCIi
T Do ADDRESS
E w 00 jtuo #au44sap�..' �Veeo • $.a(C'
8 ° o ri FOR Snail'.�ac • Lew—, (c./5-1 75Af E45J
2 Y m N
C) O 2 C- HOW PAID
CASH 4tlSi91/
0
�� �i
CHECK
i ii ,,780 . BY it,
F 58 MONEY
ORDER
O RECEIPT DATE 9- 23_ Jo NO 85553
--o M RECEIVED FROM Q&,y Silly,/ •a L
v o m ADDRESS Silly,/
U ° o a'i FOR Y a . 1 .. Sa 7. ' .�
'p Y 07 N
5 2 E HOW PAID
/ CASH r 57 9s
// r` O
CHECK K BY
\e �S
etasi HONEY
\_ ORDER
Esther Gesick
From: Esther Gesick
Sent: Wednesday, September 22, 2010 3:53 PM
To: Adela Segura
Cc: Esther Gesick
Subject: Weld County Mineral Interest documentation
Hi Adela,
I have another records request for the following properties to establish a file for Oil and Gas Leases to be considered by
the Board of Commissioners:
1) A strip of land crossing Lot 2 of NW1/4 NE1/4 in Section 15,Township 5 North, Range 65 West; recorded at Book
970, Page 396. Containing .2 acres
2) A strip of land 30' wide located on the east side of the E1/2 SW1/4 of Section 29,Township 6 North, Range 65
West,said tract being that tract conveyed in that certain Warranty Deed dated March 8, 1909, and recorded
April 19, Book 300, Page 390. Tract contains 1.82 acres.
As always,thanks in advance for all of your help!!
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
Esther Gesick
From: matrix@frii.com
Sent: Monday, September 20, 2010 4:00 PM
To: Esther Gesick
Subject: Re: FW: Oil and Gas Lease from Weld County for acres less than 5 acres
Esther,
Here are the two tracts:
1) A strip of land crossing Lot 2 of NWNE in Section 15, Township S
North, Range 65 West; recorded at Book 970, Page 396. Containing .2
acres.
2) A strip of land 30' wide located on the east side of the EXSWX of
Section 29, Township 6 North, Range 65 West, said tract being that tract
conveyed in that certain Warranty Deed dated March 8, 1909 and recorded
April 19, Book 300, Page 390. Tract contains 1.82 acres.
On Fri, 17 Sep 2010 14:33:48 -0600, Esther Gesick
cegesick@co.weld.co.us> wrote:
> Dan,
> Attached is the Small Tract Lease form and a copy of Weld County's
> Oil and Gas Leasing Policy. You will need to sign, notarize and
> return the lease to me at the address below with a check for the
> appropriate lease amount and then I can list it on the Agenda for the
> Commissioners to review. Also, would you please send me the legal
> description for the parcel so I can verify whether we have it in our
> records.
> 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)
> Original Message
> From: Bruce Barker
> Sent: Friday, September 17, 2010 2:25 PM
> To: Esther Gesick
> Subject: FW: Oil and Gas Lease from Weld County for acres less than S acres
> Esther:
> Could you send to Mr. Schwartz our small tract lease.
> Thanks!
> Bruce.
> Original Message
> From: matrix@frii.com [mailto:matrix@frii.com]
1
> Sent: Friday, September 17, 2010 11:33 AM
> To: Bruce Barker
> Subject: Oil and Gas Lease from Weld County for acres less than 5 acres
>
> Dear Mr. Barker:
> Thank you for the return phone call regarding oil and gas leases in
> Weld County. My e-mail is matrix(dfrii.com and I would appreicate all
> the guidance you can give me. Thank you.
>
> Dan Schwartz
> Matrix Energy, LLC
2
Hello