HomeMy WebLinkAbout20092665.tiffRESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE, ACCEPT OFFER TO LEASE MINERAL ACRE, AND AUTHORIZE CHAIR TO
SIGN - GREAT WESTERN OIL AND GAS COMPANY, 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, Great Western Oil and Gas Company, LLC, 1700 Broadway Street, Suite 1170,
Denver, Colorado 80290, 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:
NE1/4NE1/4, S26, T6N, R67W West of the 6th P.M.,
Weld County, Colorado
WHEREAS, Great Western Oil and Gas Company, LLC, is offering to lease the above
described mineral acres, containing 0.1762 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Great Western Oil and Gas
Company, LLC, in the amount of TWO HUNDRED AND NO/100 DOLLARS ($200.00), is
acceptable, with 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 Great Western Oil and Gas Company, 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 Great Western Oil and Gas
Company, 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.
2009-2665
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WAIVE BID PROCEDURE - GREAT WESTERN OIL AND GAS COMPANY, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 12th day of October, A.D., 2009.
BOARD OF C-QUNTY COMMISSIONERS
WELD COY,COrY, COLORADO
ATTEST:
Weld County Clerk to the
BY.
Dep y Cle • to the Board
ARVEDS TO,F 31
Date of signature. ifIk 1
Iliam F. Garcia, Chair
iougla•. Rademach •r, Pro-Tem
Cr
Sean P. Conway
2009-2665
LE0230
862
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this 9'" day of September, 2009, 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:
Great Western Oil and Gas Company, LLC
1700 Broadway Street, Suite 1170
Denver, CO. 80290
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 parcel of land being part of the Northeast Quarter of the Northeast Quarter (NE'ANE'%) of Section
Twenty Six (26), Township Six North (T.6N.), Range Sixty-seven West (R.67W.) of the Sixth Principal
Meridian (6th P M.), County of Weld State of Colorado, and being more particularly described in a Quit
Claim Deed dated March 11, 2005, recorded April 8, 2005 in Reception No 3275783 of the Weld County,
Colorado Records.
and containing 0.1762 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
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2009-2665
Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as
to the acreage surrendered.
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
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.
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
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
shall be accomplished by Lessee executing and fling 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
theretofore been completed or upon which operat ons for drilling have theretofore been commenced.
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Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit
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
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
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 w thout further action by Lessor, or further notice to Lessee.
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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.
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, ayrgl Les ep t}ps sjgped is agreement, the day and year first above written.
ATTEST:
Weld County Clerk to the Bo
By
Deputy Cle ' to the B
S t ATP. nP COLORADO
ss
COUNTY OF WELD
BOARD OF COUNTY COMMISSIONERS
ELD COUNTY, COLORADO
air, Board of County Commissioners
LESSEE:
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Titl41-17e h/ j
GUT' 2009
The foregoing instrument was acknowledged before me this 9th day of September, 2009, by Keith
Kress as President of Great Western Oil and Gas Company, LLC, a Colorado limited liability company, on
behalf of said limited liability company.
Witness my hand and official seal.
Notary Public
My Commission Expires:
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C:\Documents and Settings\srodriguez\My Documents\Weld County Small Tract OGL.doc
(Revised 11/20(30
1700 Broadway
Suite 1170
Denver, Colorado 80290
September 22, 2009
Esther Gesick, Deputy Clerk to the Board
Weld County, Colorado
915 10th Street
Greeley, CO. 80631
Santiago Rodriguez
Petroleum Landman
Tel: 303-398-0596
Fax: 1.866-776-1057
E-mail: srodriguez@gwogco.com
RE: Oil and Gas Lease covering a tract of land located in the NE'/<NEA of Section 26, Township 6
North, Range 67 West, of the 6`" P.M., County of Weld, State of Colorado, being more fully
described in a Quit Claim Deed dated March 11, 2005 in Reception No. 3275783 of the Weld
County, Colorado records, containing 0.1762 acres, ±.
Dear Esther Gesick:
Enclosed you will find the signed and notarized small tract oil and gas lease pertaining to the above
described lands. Also included is Check No. 15257 in the amount of $200.00 as payment for the lease
bonus as stipulated in Section 2-2-70.A.7 of the Weld County Code. Once the lease has been signed and
notarized on your end, please forward a recorded copy via email. Thank you for your time.
Please feel free to contact me with any questions and/or concerns.
Best Regards,
Santiago Rodriguez, Petroleum Landman
Great Western Oil and Gas Company, LLC
Esther Gesick
From: Esther Gesick
Sent: Wednesday, September 02, 2009 10:44 AM
To: Santiago Rodriguez
Cc: Bruce Barker; Esther Gesick
Subject: RE: Information pertaining to unleased Weld County tract
Attachments: FOSmallTract.doc
Santiago,
Thanks for your follow-up call; I appreciate your patience. The Small Tract Lease is attached to be completed and signed
and submitted back to me with the appropriate fee. The County Attorney is currently reviewing the property
information you submitted, and I'll let you know when this matter will be listed on the Commissioners' Agenda.
Thanks!
Esther E. Gesick
Deputy Clerk to the Board
Weld County, Colorado
915 10th Street
Greeley, CO 80631
(970)356-4000 X4226
(970)352-0242 (fax)
From: Santiago Rodriguez [mailto:srodriguez@gwogco.com]
Sent: Tuesday, August 18, 2009 4:02 PM
To: Esther Gesick
Subject: Information pertaining to unleased Weld County tract
Dear Esther Gesick,
Thank you for taking the time in speaking with me today. Once again, my name is Santiago Rodriguez; I am a landman working for
Great Western Oil and Gas Company (GWOG) based out of Denver. Attached you will find information pertaining to a tract in the
NEY,NE''A of Section 26, Township 6 North, Range 67 West of 6th P.M. My recent research revealed this tract to be unleased and
GWOG desires to acquire an oil and gas lease on this tract to consolidate our leasehold in this section. Attached you will find the
following information pertaining to said tract.
I . Quit Claim Deed recorded at #3275783 of the Weld County records vesting title into Weld County
2. Plat recorded at #3592743 with said tract circled
3. Property Profile from the Weld County Assessor website
4. Map of parcel from Weld County Assessor website.
If there is any other information I can provide, please let me know. Thank you for your time into this matter. Best regards.
Santiago Rodriguez
Petroleum Landman
Great Western Oil and Gas Company
1700 Broadway, Suite 1170
Denver, CO 80290
(303) 398-0596 (Office)
(866) 776-1057 (Fax)
(303) 929-5922 (Cell)
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