HomeMy WebLinkAbout20102104.tiff 4
RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN -CARRIZO OIL AND GAS, 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, Carrizo Oil and Gas, Inc., 1000 Louisiana Street, Suite 1500, Houston, Texas
77002, 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 25, Township 8 North, Range 61 West of the
6th P.M., Weld County, Colorado; being further
described as a strip of land 20 feet wide, adjacent
and south of the present highway right-of-way
extending westward 7,920 feet from the north and
south center line of Section 25 to the west boundary
line of Section 26
WHEREAS,Carrizo Oil and Gas, Inc., is offering to lease the above described mineral acres,
containing 3.64 mineral acres, more or less, and
WHEREAS,the Board finds that the lease offer from Carrizo Oil and Gas, Inc., in the amount
of THREE HUNDRED SIXTY AND NO/100 DOLLARS ($360.00), is acceptable, with the further
terms and conditions being as stated in said Small Tract Oil and Gas Lease, a copy being attached
hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the request of Carrizo Oil and Gas, Inc., to waive the bidding procedure on
an Oil and Gas Lease concerning the above described mineral acres, be, and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Carrizo Oil and Gas, Inc., to
lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to
sign said Small Tract Oil and Gas Lease.
rri z o 2010-2104
Le_ LE0276-�
q - aO--1O
WAIVE BID PROCEDURE - CARRIZO OIL AND GAS, INC.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 13th day of September, A.D., 2010.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COI RADO 14 A
ATTEST:�7 �'♦ � = _ 4 GALL"'
las ademach , Ch r
Weld County Clerk to the Bod + R61 `
'1 / �9' x"'� bara Kirkmeyer, o-Tem
BY. (
Dep Clerk t. he oard P
Sean P.,Co way
APP D AS T
F. Garcia
ounty Attorney OC
David E. Long
Date of signature: girdC7/0
2010-2104
LE0276
545
WELD COUNTY OIL AND GAS LEASE
(Small Tract)THIS AGREEMENT, made and entered into this . 3� day of C x r , 20 I L , by and
between WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and
through the Board of County Commissioners of the County of Weld, 915 10th Street, P.O. Box 758,
Greeley, CO 80632, hereinafter called Lessor, and:
Carrizo Oil & Gas, Inc.
1000 Louisiana Street, Suite 1500
Houston, Texas 77002
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$_360.00 , 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:
Sections_25 &26_Township_8_ North, Range_61_West of the 6th P.M., Weld County, Colorado:
SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF
and containing 3.64 acres, more or less.
ism. 0
d 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
o 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
to expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on
- c acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then
- n d this lease shall continue in force so long as operations are being continuously prosecuted on the leased
o 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
a well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on
5 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
L. operations within ninety (90) days from date of cessation of production or from date of completion of dry
-o c 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
- c
— o produced from the leased premises or on acreage pooled therewith.
aims°C 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees
=vii Ln that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any
o operations during the primary term. Lessee may at any time or times during or after the primary term
—0),- 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.
2010-2104
P:\Renee Calhoun\NiobraralweldCountyLeaseOrlandoHillWell090210.doc L.EO29)
(Revised 612007)
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. 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
— -2 then only with respect to payment thereafter made. No other kind of notice, whether actual or
own 8 constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to
o cc different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of
4-5°e Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any
.61 part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other
ca leasehold owner.
0 C
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0 11. Lessee, at its option, is hereby given the right and power at any time and from time to
3 time as a recurring right, either before or after production, as to all or any part of the land described herein
= c; and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the
y mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the
r production or oil and gas, or separately for the production or either, when in Lessee's judgment it is
s o 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
N or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit
—r o shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
o o reformation, which declaration shall describe the unit. Any unit may include land upon which a well has
— cc theretofore been completed or upon which operations for drilling have theretofore been commenced.
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
M N operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein
P:\Renee Calhoun\Niobrara\WeldCountyLeaseOrlandoHillWell090210.doe
(Revised 11/2000)
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
proportion of the unit production that the total number of surface acres covered by this lease and included
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
a 72 any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described
O 0 lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder
mail cc
thereof.
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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,
o including death, to persons or property caused by or sustained in connection with operations on this
g, leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or
-34, regulation.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
ti including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and
o gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel
o
—4=6 this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any
0 o such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified
-Ila!,N mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to
o cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date
o
— cc of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such
MIM LO 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
-M M 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.
P:\Renee Calhoun\Niobrara\WeldCountyLeaseOrlandoHillWell090210.doc
(Revised 11/2000)
17. Lessee shall not conduct operations of any kind upon the surface of the lands herein
described without the express written consent of Lessor.
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: 75
Weld County Clerk to the BOARD OF COUNTY COMMISSIONERS
0 w WELD COUNTY, COLORADO
Mrs f�
By:
Deputy Cle to the jt�' ? � / Chair, =oard of i ounty Commissioners
SEP 1 3 2010
�•.rr�
LESSEE:
CARRIZO OIL & GAS, INC. E9fJ
By: VAT
Title: Richard H. Smith
Vice President-Land
STATE OF COLORADO
ss
COUNTY OF WELD
The foregoing instrument was acknowledged before me this G - day of
Septem.6er , 20 /0, by R,e%ard ff. Lit Hit •
Witness my hand and official seal.
�!f �� D^f, � 1 A R CHMONU
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Notary Public
My Commission Expires: Tu4 e / .1.0 It
1 111111111111111111111111111 11111111111 111 111111 1111 III'
3718545 09/15/2010 11:42A Weld County, CO
4 of 5 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
P:\Renee Calhoun\Niobrara\WeldCountyLeaseOrlandoHillWell090210.doe
(Revised 11/2000)
Exhibit"A"
Attached to and made a part of that certain Weld County Oil and Gas Lease (Small Tract) made and
entered into this _ day of 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, as lessor, and Carrizo Oil & Gas, Inc.,
1000 Louisiana Street, Suite 1500, Houston,Texas 77002, as lessee.
DESCRIPTION OF LANDS:
Township 8 North, Range 61 West, 6th P.M.
Section 25 and Section 26: A 20 foot strip of land out of Section 25 and Section 26 containing 3.64 acres
of land, more or less, as more fully described in a Final Ruling of Court in Cause No. 9006, entitled Board
of County Commissioners of Weld County, Colorado, Plaintiff versus Arvada Lodge No. 145 I.O.O.F., et al
Defendants dated September 16, 1935, and being recorded in Book 983 at Page 30 of the Official
Records of Weld County, Colorado, said land being more specifically described as follows:
A strip of land 20 feet wide adjacent and South of the present highway right-of-way, extending
westward approximately 7920 feet from the North and South center line of Section 25, to the West
boundary line of Section 26,Township 8 North, Range 61 West of the 6th P.M., containing approximately
3.64 acres.
Weld County, Colorado
SIGNED FOR IDENTIFICATION:
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
By: Sl
Title: Chair, B and of C unty Commissioners
1 111111 11111 111111 11111 11111 11111 111111 III 11111 11111111
3718545 09/15/2010 11:42A Weld County, CO
5 of 5 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
R R I Z O
September 8, 2010 Via Overnight Mail
Ms. Esther Gesick
Deputy Clerk to the Board
Weld County, Colorado
915 10th Street
Greeley, Colorado 80631
Re: Oil and Gas Lease
T8N-R61W, 6th P.M.
Sections 25 &26
3.64 acres of land, more or less
Weld County, Colorado
Dear Ms. Gesick:
As per previous email communications, Carrizo Oil &Gas, Inc. ("Carrizo")would like to acquire an oil and
gas lease from Weld County covering the lands described on the enclosed lease. In this regards,
enclosed herewith please find the following:
• Weld County Oil and Gas Lease executed on behalf of Carrizo; and
• Carrizo check number 52276, payable to Weld County, in the amount of$360.00 representing
the bonus consideration for the lease.
Please add this lease request to the agenda for the Board of Commissioners to consider and sign.
Should you require additional information, please contact the undersigned by mail at the address shown
on this letter, by email at renee.calhoun@crzo.net or by telephone at 713-358-6458.
Your assistance in this matter is greatly appreciated.
Yours truly,
P
Renee D. Calhoun
Contract Landman
enclosures
CARRIzo OIL&GAS,INC. • 1000 LOUISIANA STREET • SUITE 1500 • HOUSTON,TEXAS 77002 • PHONE(713)328-1000 • FAX(713)328-1035
'PLEASE DETACH AT PERFORATION ABOVE" "PLEASE DETACH AT PERFORATION ABOVE'
CARRIZO OIL & GAS, INC.
L 1000 LOUISIANA STREET
SUITE 1500
HOUSTON TX 77002
Check Number 0000052276
Invoice# Inv. Date Description Amount Discount li Net Amount
CKRQ20100903 09/03/2010 BONUS CONSIDERATION FOR OIL,GAS 360.00 0.00 360.00
AND MINERAL LEASE FOR WELD
COUNTY-3.64 ACRES,SECTIONS 25
I AND 26,T8N-R61 W,WELD COUNTY,
COLORADO
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RECEIPT DATE 0-1,- in NO. 85540
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o a M RECEIVED FROM l Qi YI W Oaf GGin.5 � C_
T m 8 ADDRESS
ca2O JJew pdMd1�w�ry 4°'Y10 $ 36c.OO
8 a o t FOR 3nIGM Ggd L ( '(,4 tuxes)
-O -6 CO N
U a (0 HOW PAID Sai43l0 -TS k.1-kb' l.."
CASH CR1�'_/ Saa'1L 0
aim `4 C ,-160 0O BY S •
ei
MONEY
ORDER
047962 $1 Vendor Check Date: 09/07/201O Check Amount 360.00 I,
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