HomeMy WebLinkAbout20102813.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 - NOBLE ENERGY, INC.
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, Noble Energy, Inc., 1625 Broadway, Suite 2200, 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:
Section 9, Township 6 North, Range 63 West of the
6th P.M., Weld County, Colorado: That part of a strip
of land 60 feet wide lying south and east of the strip
conveyed to the Union Pacific Railroad Company by
Deed dated February 8, 1909, filed of record at Book
300, Page 35, lying in the E1/2SW1/4 and containing
1.36 acres, more or less; and
Section 9, Township 6 North, Range 63 West of the
6th P.M., Weld County, Colorado: That part of a strip
of land 60 feet wide lying south and east of the strip
conveyed to the Union Pacific Railroad Company by
Deed dated February 8, 1909, filed of record at Book
300, Page 35, lying in the W1/2SW1/4 and containing
2.69 acres, more or less; and
WHEREAS, Noble Energy, Inc., is offering to lease the above described mineral acres,
containing 1.36 and 2.69 mineral acres, more or less, respectively, and
WHEREAS, the Board finds that the lease offer from Noble Energy, Inc., in the amount of
FOUR HUNDRED AND NO/100 DOLLARS ($400.00) PER ACRE, FOR A TOTAL OF$1,620.00, 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.
l Noo\� 2010-2813
1 on-cis \- N()\")\{- '. LE0288
//-a3-lo la-S -ID
WAIVE BID PROCEDURE - NOBLE ENERGY, INC. (PT. SW1/4, S9, T6N, R63W)
PAGE 2
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of[Company Name], 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 Noble Energy, Inc., 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.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 22nd day of November, A.D., 2010.
BOARD OF COUNTY COMMISSIONERS
WELD COUDT.Y„/COLORADO
ATTE �'i, \
T '
ugl Radem , air .
Weld County Clerk to the Bo d ,t,,C.-•
xEi , ,,�, , - arbara4irkmeY4TeYm
Deputy Clerk to the Board ); ' EXCUSED
N-% Sean P. C ay
APPROVED AS ORM:
j - Wiliam -. Ga
ounty`Attorney «\A -`\\
David E. Long
Date of signature: / AT
2010-2813
LE0288
558
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this ',,)a"day of November, 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, Noble Energy, Inc., whose address is 1625 Broadway, Suite 2200,
Denver, CO 80202, hereinafter called Lessee.
$400.00 (per acre)
WITNESSETH, that Lessor, for and in consideration of the sum of$200.00 f Fwe-bki died Dollars
and NO/100), 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 9 Township 6 North, Range 63 West of the 6th P.M., Weld County, Colorado: That part of a strip
of land 60 feet wide lying South and East of the strip conveyed to the Union Pacific Railroad Company by
deed dated February 8, 1909, filed of record at Book 300 Page 35, lying in the E/2SW/4 and containing
1.36 acres, more or less; and,
Section 9 Township 6 North, Range 63 West of the 6th P.M., Weld County, Colorado: That part of a strip
of land 60 feet wide lying South and East of the strip conveyed to the Union Pacific Railroad Company by
deed dated February 8, 1909, filed of record at Book 300 Page 35, lying in the W/2SW/4
and containing 2.69 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
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
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
prosecuted if not more than ninety(90) days shall elapse between the completion or abandonment of one
well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
said land or on acreage pooled therewith, the production thereof should cease from any cause after the
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
hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the
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
that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
operations during the primary term. Lessee may at any time or times during or after the primary term
surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to
Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
to the acreage surrendered.
111111111111111111III111111 IIII IIIIIIII III fl IIII till 2010-2813
3734558 11/24/2010 01:03P Weld County, CO
1 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder Le 0A2
c:\oocu ME-1\B I LLBE-1\LOCALS-1\Temp\notesD30550\FOSm allTract.doc
(Revised 10/2010)
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
is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
a
11. Lessee, at its option, is hereby given the right and power at any time and from time to
time as a recurring right, either before or after production, as to all or any part of the land described herein MIEN
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
production or oil and gas, or separately for the production or either, when in Lessee's judgment it is �'
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
or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit i�
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 —Z
theretofore been completed or upon which operations for drilling have theretofore been commenced. !-T—.&
Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit a°
which includes all or a part of this lease shall be treated as if it were production, drilling or reworking �4:
operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein ma
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of such production allocated to this lease; such allocation shall be that im_sig
proportion of the unit production that the total number of surface acres covered by this lease and included —d
C:\DOCu ME-1\B I LLBE-1\LOCALS-1\Temp\notesD30550\FOSm allTract.doc
(Revised 10/2010)
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
leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
regulation.
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
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 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
failure or default is not corrected with thirty(30) days after the mailing of such notice, and if Lessee does
not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by
operation of the paragraph without further action by Lessor, or further notice to Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal
representatives, successors and assigns of Lessor and Lessee.
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor.
111111 11111 IIIIII 111111111111111111111 III VIII III11111
3734558 11/24/2010 01.031' Weld County, CO
3 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
C:\Docu ME-1\B I LLBE-1\LOCALS-1\Temp\notesD30550\FOSmailTract.doc
(Revised 10/2010)
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.
fat
ATTEST: y ✓ �_
Weld Count Clerk to the = ar OARD OF COUNTY COMMISSIONERS
S7& 1/42- ELD COUNTY, COLORADO
�
'!J
By: �r�--
Deputy Clerk the =oa`► �� ( ( ® Chair, oard of ounty Commissioners
NOV 222010
LESSEE: Noble Energy, Inc
By: /UR--t!/ 4// 13(3
P. David Padgett
Title: Land Director
STATE OF COLORADO
) ss
COUNTY OF WELDfil
)
The foregoing instrument was fac nowledged �before me this 1A day of
lovember 20 , by La VIA �Q(�/ 7 ' o^n _'n_l OC-t 'U bbl„
ine qv, �n
Witness my hand and official seal. O`≤ ;`1tV tA�Fi
.....
Notary Public A '.. PUBLIC .!o
My Commission Expires: 6/2. /2---) OF COvO�
1 11111111111111111 III 111111 /III11111111 111111111111 111
3734558 11/24/2010 01:03P Weld County, CO
4 of 4 R 0.00 0 0.00 Steve Moreno Clerk & Recorder
&O/i -ca/v
C:\DOCUME-1\BILLBE-1\LOCALS-1\Temp\notesD30550\FOSmallTract.doc
(Revised 10/2010)
Esther Gesick
From: BBetson@nobleenergyinc.com
Sent: Thursday, November 18, 2010 5:10 PM
To: Esther Gesick
Subject: Re: Small Tract Lease
Thanks Esther. Yes, I am agreement with the change to$400 per acre.Thanks. Bill Betson for Noble Energy.
From: Esther Gesick[egesick@co.weld.co.us]
Sent: 11/18/2010 03:45 PM MST
To: Bill Betson
Subject: Small Tract Lease
Bill,
I received the Small Tract Lease and check that was delivered today. Just wanted to let you know I made a correction to
the front page to strike"$200.00" and typed in "$400.00 per acre". Please respond to this message that you are in
agreement with that and I'll include your response with the file as documentation. This will be considered by the Board
meeting at 9:00 on Monday. You are not required to attend, but are welcome to if you're interested. The Agenda will
be posted on the Commissioners website mid-day tomorrow at:
http://www.co.weld.co.us/Departments/Comm issioners/Age ndas/i ndex.htm I
Let me know if you have any questions. 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
Esther Gesick
From: BBetson@nobleenergyinc.com
Sent: Wednesday, October 27, 2010 8:22 AM
To: Esther Gesick
Subject: Tracts for Oil and Gas Lease
Attachments: SKMBT_C45010102708070.pdf
Dear Ms. Gesick:
I reference to your earlier email, I have attached hereto a copy of the pages from our Drilling Title Opinion which identifies
tracts 7 and 8 within the SW/4 of Section 9, T6N R63W., 6th P.M. Tract 7 is 1.36 acres in the E/2SW/4. Tract 8 is 2.690
acres in the W/2SW/4. The owner of the surface and oil and gas is Weld County. Noble would like to obtain an Oil and
Gas Lease from Weld County covering these two tracts which total 4.05 acres in the SW/4-9-T6N R63W. Please advise
as to how we are to proceed.
Bill Betson
Senior Land Negotiator
Noble Energy, Inc.
970-785-5052 Phone
970-785-5099 Fax
970-302-1028 Cell
Forwarded by Bill Belson/Platteville/NobleEnergy/Samedan on 10/27/2010 08:14 AM
DoNotReply To bbetsonAnobleenergvinc.com
cc
10/27/2010 09:07 AM Subject Message from KMBT_C450
Please respond to
DoNotReply
RECEIPT DATE /— /e?-iv NO. 85652
o m RECEIVED FROM "Odle gnittlyo eel
° o ADDRESS
aeu-
8 o o x e,Snal/ .1.44 J ba.a) f P&3 w) 1f0a 88
m>. FOR
U Y m N
U a t'7 HOW PAID
CASH #61.0100509461-'
�E�� CHECK ��II '^
\Ng la yJ /, l0a?O - BY
�3.1 no=G=
ORDER
1
Esther Gesick
From: BBetson@nobleenergyinc.com
Sent: Wednesday, October 20, 2010 9:04 AM
To: Esther Gesick
Subject: Correction of Description for Nomination for Oil and Gas Lease auction
Dear Ms. Gesick:
Please amend my legal description for the tract of the land to be nominated for your next Oil and Gas Lease auction to
read as follows: That part of a strip of land 60 feet wide lying South and East of the strip conveyed to the Union Pacific
Railroad Company by Deed dated February 8, 1909, filed of record at Book 300, Page 35, lying in the E/2SW/4 and
W/2SW/4 of Section 9, Township 6 North, Range 63 West, 6th P.M., containing 4.05 acres, more or less.
Please accept my apology for inconvenience this has caused.
Thanks you.
Bill Betson
Senior Land Negotiator
Noble Energy, Inc.
070 785 6052 Phone 363 _yon
970-785-5099 Fax
970-302-1028 Cell
1
Hello