The URL can be used to link to this page

Browse Search

Home My WebLink About20090152.tiffRESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE AND AUTHORIZE CHAIR TO SIGN - PETRO-CANADA RESOURCES (USA) 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, Petro -Canada Resources (USA) Inc., 999 18th Street, Suite 600, Denver, Colorado 80202-1904, 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 tract of land described as Lots 34 through 39, Block 48, inclusive, and vacated alleys as set forth within Minor Resubdivision #374, all lying and being in the Town of Barnesville; being part of Section 18, Township 6 North, Range 63 West of the 6th P.M., Weld County, Colorado WHEREAS, Petro -Canada Resources (USA) Inc. is offering to lease the above described mineral acres, containing 0.50 net mineral acres, more or less, and WHEREAS, the Board finds that the lease offer from Petro -Canada Resources (USA) Inc., 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 Oil and Gas Lease (Small Tract), 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 Petro -Canada Resources (USA) Inc., to waive the bidding procedure on an Oil and Gas Lease (Small Tract) concerning the above described mineral acres, be, and hereby is, granted. BE IT FURTHER RESOLVED by the Board that the offer of Petro -Canada Resources (USA) 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 lease. 2009-0152 LE0260 (70 '. t'E—r-1Z6 aa-/-0`I WAIVE BID PROCEDURE - PETRO-CANADA RESOURCES (USA) INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 19th day of January, A.D., 2009. BOARD OF COUNTY COMMISSIONERS WELD COUNTY. C0 ATTEST: Garcia, Chair Weld County Clerk to Douglas 5tademachr, Pro-Tem BY: Deputy Cler Sea p P. Conway APP arbara Kirkmeyer �oC David E. Long ounty ttorney ->> Date of signature. �n 2009-0152 LE0260 Y 1S1 WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this 1st day of July, 2008 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: Petro -Canada Resources (USA) Inc. 999 18th Street, Suite 600 Denver, Colorado 80202 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: Township 6 North, Range 63 West, 61° P.M. Section 18: Block 48, Lots 34-39, inclusive, and vacated alleys as set forth in that Resolution of the Board of County Commissioners of Weld County, Colorado approving minor resubdivision #374, all lying and being in the Town of Barnesville, County of Weld, State of Colorado. and containing 0.50 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 refeved of all obligation thereafter accruing as to the acreage surrendered. I IIIIII IIIII IIIIII III IIIIII IIIIIII(IIII III IIIII IIII IIII orce, •- 0/5 3603737 02/06/2009 12:41P I 1 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder LEO 24o 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 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 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 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 11111111111111111 III 111111111111111111 III 11111 IIII IIII 3603737 02/06/2009 12:41P Weld County, CO 2 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 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 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 representat ves successors and assigns of Lessor and Lessee. 11111111111 111111 III 111111 1111111 11111 III 11111 I11I IIII 3603737 02/06/2009 12:41P Weld County, CO 3 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 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 Lesee,has �igne. this agreement, the day and year first above written. ATTEST: Weld County Clerk to the Board By: (Lt i'U' �/ �l ,v'� Dep y CleBoard of County Commissioners • J RD OF COUNTY •MMISSIONERS UN Y '• 'ADO STATE OF COLORADO ) ss COUNTY OF DENVER JAN 1 9 2009 PETRO-CANADA RESOUCES (USA) INC. By: - j ° _- Ryan D. Antonio, Landman The foregoing instrument was acknowledged before me this }i thin I 1rI/ 1 by Ryan D. Antonio as Landman for Petro -Canada Resources (USA) Inc., a Colorado Corporation, on behalf of said company Witness my hand and official seal. My Commission Expires: 1 l q 2L H -vV'1• c�.• r'•$ : g" ' C "Z'c (C(//// (a)Z4 Notary Public 1 IIIIII 11111 IIIIII III 11111 1111111 11111 III 111111111 VIII 3603737 02/06/2009 12:41P Weld County, CO 4 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder cCCj-r/S2 Petro -Canada Resources (USA) Inc. Suite 600, 999 18'" Street Denver, CO 80202-1904 Telephone: (303) 297-2100 Facsimile: (303) 297-7708 January 9, 2009 Board of Weld County Commissioners 915 10th Street Greeley, Colorado 80632 Re: Oil and Gas Lease (small tract) Weld County, Colorado Township 6 North, Range 63 West, 6th P. M. Section 18: Block 48, Lots 34-39, inclusive and vacated alleys as set forth in that Resolution of the Board of County Commissioners of Weld County, Colorado approving minor resubdivision #374, all lying and being in the Town of Barnesville, County of Weld, State of Colorado Gross Acres: 0.50 Net Acres: 0.50 Enclosed for your review is an Oil and Gas Lease and Bonus Check. Petro -Canada Resources (USA) Inc., will pay you a flat $200.00 for a three-year (3), paid -up lease term with a landowner's royalty rate of twenty - percent (20 %). If you have questions, I can be reached by cell phone (303) 621-5196. If you notice any errors or changes that need to be made, please give me a call. Sincerely, Ryan D. Antonio, Landman Petro -Canada Resources (USA) Inc. 2009-0152 NOTES 0 OO RECEIP DATE /4/3 NO. RECEIVED FROM 1-O CctIGti6 ,1A4`t.ulQr 111 AIM) �.C.'1c • ch CO ADDRESS 'Co O C] J CD wCJ L cc 44u.n4 u../ �`0/oo— i p FOR :SniL,.i-1 .l'tfd Q)Li `I' Cr?ri:.") ACCOUNT HOW PAID AMT. Or ACCOUNT CASH AMT. PAIN CHECK l BALANCE DUE MONEY ORDER (512,T4u, e.tl3w) LF021co q#5014-i(a BY 0.�f1+ 2001 rsn!.rr+±E! BLBBB LEco2icC Page 1 of 4 Esther Gesick From: Antonio, Ryan [Ryan.Antonio@petro-canada.com] Sent: Tuesday, January 13, 2009 9:00 AM To: Esther Gesick Subject: RE: Weld County Small Tract OGL Attachments: 20081120081924408. pdf See attached deed and comments from our title attorney (below): As requested, I have attached a .pdf copy of the deed from Weld County we discussed which reserves the minerals. It is a little bit difficult to read, so here's the pertinent information: Abstract Document No. 164: County Deed dated June 10, 1947 and recorded on June 11, 1947, in Book 1205 at Page 421, Reception No. 1007948, of the records of Weld County, Colorado, from the Board of County Commissioners of Weld County, as grantors, to R.V. !vie, as grantee, covering Block 48, Lots 33-39, Amended Plat of Barnesville, recorded on August 23, 1911, at Reception No. 169678 of the records of Weld County. The County Deed reserves "all oil, gas and other minerals therein or thereunder" to the grantors. Based upon the Materials Examined for the DDOTO update, Weld County remains the owner of 100% of the minerals underlying Block 48, Lots 33-39 of the Amended Plat of Barnesville. Ryan D. Antonio, Landman Petro -Canada Resources (USA) Inc. 999 18th Street, Suite 600 Denver, Colorado 80202 303-865-7458 (Office) 303-621-5196 (Cell) 303-297-7708 (Fax) ryan.antonio@petro-canada.com From: Esther Gesick [mailto:egesick@co.weld.co.us] Sent: Tuesday, January 13, 2009 8:42 AM To: Antonio, Ryan Cc: Esther Gesick Subject: RE: Weld County Small Tract OGL Ryan, I received the Small Tract Lease today; however, my records research does not include this parcel. Would you please forward a copy of the title work which indicates the County's ownership? Thanks! Esther E. Gesick Deputy Clerk to the Board 915 10th Street Greeley, CO 80631 (970)356-4000 X4226 (970)352-0242 (fax) 1/13/2009 Page 2 of 4 From: Antonio, Ryan [mailto:Ryan.Antonio@petro-canada.com] Sent: Thursday, January 08, 2009 7:41 AM To: Esther Gesick Subject: RE: Weld County Small Tract OGL Esther - I will be sending out this lease today. I will send a fully prepared small tract lease along with $200.00 bonus payment. Is there anything else I need to send? Thanks! Ryan D. Antonio, Landman Petro -Canada Resources (USA) Inc. 999 18th Street, Suite 600 Denver, Colorado 80202 303-865-7458 (Office) 303-621-5196 (Cell) 303-297-7708 (Fax) ryan.antonio@petro-canada.com From: Esther Gesick [mailto:egesick@co.weld.co.us] Sent: Tuesday, December 16, 2008 3:18 PM To: Antonio, Ryan Subject: RE: Weld County Small Tract OGL Ryan, I just wanted to let you know I have not received anything regarding the Small Tract Lease you mentioned. I don't mean to rush you, but if you have sent it, I wanted you to be aware that it hasn't arrived. Esther E. Gesick Deputy Clerk to the Board 915 10th Street Greeley, CO 80631 (970)356-4000 X4226 (970)352-0242 (fax) From: Antonio, Ryan [mailto:Ryan.Antonio@petro-canada.com] Sent: Monday, December 08, 2008 3:44 PM To: Esther Gesick Subject: Weld County Small Tract OGL Ester - Attached is the vesting deed for mineral interest in which Weld County owns. I'll be sending a lease along with a bonus payment in the mail this week. Please review the deed and let me know if you have any questions. 1/13/2009 Page 3 of 4 Thanks, Ryan D. Antonio, Landman Petro -Canada Resources (USA) Inc. 999 18th Street, Suite 600 Denver, Colorado 80202 303-865-7458 (Office) 303-621-5196 (Cell) 303-297-7708 (Fax) ryan.antonio@petro-canada.com From: Danielle Kelley [mailto:danielle.kelley@yahoo.com] Sent: Thursday, November 20, 2008 11:00 AM To: Antonio, Ryan Cc: Frase, Janet; Smith, Aubrie; Gillman, Mari; Cruickshank, Diane Subject: Fw: Weld County Deed ... & Last unleased interest in Wilson wells Ryan, Will you please prepare & get the lease from Weld County for the following tract. "Block 48, Lots 33- 39 of the Amended Plat of Barnesville" in 18 -6N -63W. The vesting deed (showing the reservation) is attached since they always want us to prove that they own what they forgot they own --we were surprised that they reserved in this situation, as that's not how they normally treat these kinds of properties. I'll get the acreage figure for you; it should be under the 5 -acre threshold that would require additional clearance. Weld County reprepsents 100% of the minerals in the tract. D.O. Dept: I am working with Brent and he is working feverishly to finish the opinion. I'll let you know when it's in and when the Weld County lease comes in. THANKS!! Danielle Kelley (303) 523-9096 This email communication is intended as a private communication for the sole use of the primary addressee and those individuals listed for copies in the original message. The information contained in this email is private and confidential and If you are not an intended recipient you are hereby notified that copying, forwarding or other dissemination or distribution of this communication by any means is prohibited. If you are not specifically authorized to receive this email and if you believe that you received it in error please notify the original sender immediately. We honor similar requests relating to the privacy of email communications. --- On Thu, 11/20/08, Chicken, Brent <behicken@bwenergylaw.com> wrote: From: Chicken, Brent <bchicken@bwenergylaw.com> Subject: Weld County Deed .. . To: "Danielle Kelley" <danielle.kelley@yahoo.com> Date: Thursday, November 20, 2008, 8:35 AM 1/13/2009 Page 4 of 4 Dani: As requested, I have attached a .pdf copy of the deed from Weld County we discussed which reserves the minerals. It is a little bit difficult to read, so here's the pertinent information: Abstract Document No. 164: County Deed dated June 10, 1947 and recorded on June 11, 1947, in Book 1205 at Page 421, Reception No. 1007948, of the records of Weld County, Colorado, from the Board of County Commissioners of Weld County, as grantors, to R.V. (vie, as grantee, covering Block 48, Lots 33-39, Amended Plat of Barnesville, recorded on August 23, 1911, at Reception No. 169678 of the records of Weld County. The County Deed reserves "all oil, gas and other minerals therein or thereunder" to the grantors. Based upon the Materials Examined for the DDOTO update, Weld County remains the owner of 100% of the minerals underlying Block 48, Lots 33-39 of the Amended Plat of Barnesville. Thanks, BDC Brent D. Chicken Beatty & Wozniak, P.C. Columbine Place Suite 1100 216 Sixteenth Street Denver, CO 80202-5115 303.407.4499 (main) 303.407.4463 (direct) 303.407.4494 (fax) bchicken@bwenergylaw.com Confidentiality and Disclosure Notice: This e-mail and any attachments contain information from Beatty & Wozniak, P.C., and are intended solely for the use of the named recipient or recipients. This e-mail may contain privileged attorney/client communications or work product. Any dissemination or review of this e-mail by anyone other than an intended recipient is strictly prohibited. If you are not a named recipient, you are prohibited from any further viewing of the e-mail and any of its attachments, and from making any use whatsoever of the e-mail or its attachments. If you believe you have received this e-mail in error, notify the sender immediately, and permanently delete the e-mail, any and all attachments, and all copies thereof from any electronic hard drives or other storage media, and destroy any printouts of the e-mail or its attachments. Further, nothing set forth herein is intended to provide tax advice; however, pursuant to IRS Circular 230, any U.S. tax advice contained in this communication (including any and all attachments) is not intended or written to be used, and cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any matters addressed herein. This email communication is intended as a private communication for the sole use of the primary addressee and those individuals listed for copies in the original message. The information contained in this email is private and confidential and If you are not an intended recipient you are hereby notified that copying, forwarding or other dissemination or distribution of this communication by any means is prohibited. If you are not specifically authorized to receive this email and if you believe that you received it in error please notify the original sender immediately. We honour similar requests relating to the privacy of email communications. Cette communication par courrier electronique est une communication privee a ('usage exclusif du destinataire principal ainsi que des personnes dont les noms figurent en copie. Les renseignements contenus dans ce courriel sont confidentiels et si vous n'etes pas le destinataire prevu, vous etes aviie, par les presentes que toute reproduction, transfert ou autre forme de diffusion de cette communication par quelque moyen que ce soit est interdite. Si vous n'etes pas specifiquement autorise a recevoir ce courriel ou si vous croyez l'avoir requ par erreur, veuillez en aviser l'expediteur original immediatement. Nous respectons les demandes similaires qui touchent la confdentialite des communications par courrier electronique. 1/13/2009 Hello