HomeMy WebLinkAbout20082626.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - 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 located in the E1/2 SE1/4 of Section 2,
Township 5 North, Range 65 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 6.106 gross acres, and 3.053 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.
2008-2626
LE0258
00 . Pe-1�eo
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 29th day of September, A.D., 2008.
I I�, OARD OF COUNTY COMMISSIONERS
ELD COUNTY, COLORADO
ATTEST: ALM f 1861 0 iv `-e-CiP
iam H. Jerke, Chair
Weld County Clerk to the Bo ® A
��vvv s ILA
• Robert D. asden, P Tem
1 Va,G1 �6w1
D:p ty �rk to the Bp rd
Will F. Garcia
AP OV AS TO
David . Long
u y orney oa as
ugla Rademac er
Date of signature: �� /006
2008-2626
LE0258
882 WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this 22nd day of September, 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:
For description see Exhibit "A"attached and made a part hereof
and containing 6.106 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 accruina as
to the acreage surrendered.
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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
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
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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
representatives, successors and assigns of Lessor and Lessee.
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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, Le e a i ne his agreement, the day and year first above written.
ATTEST: L
Weld County Clerk to the rd /�'� OARD OF COUNTY COMMISSIONERS
eon ELD COUNTY, COLORADO
By: F ..y
Deputy Cle o the Board .; hair, Board of County Commissioners
"William H. Jerke, Chair
09/29/2008
LESSEE:
PETRO-CANADA RESOUCES (USA) INC.
B
R . Antonio, Landman
STATE OF COLORADO
ss
COUNTY OF DENVER
The foregoing instrument was acknowledged before me this 22nd day of September. 2008 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: / /5- z-O/1 4 . ( taxi
Notary Public
O : O
rte \o ;
ev
'o;9Te OF G `°
4ennm mo
1111111 11111 111111 11111 111111 1111 111111 III IIII! III! 1111
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C:IDocuments and SettingslrantoniolDesktop1Weldcountyogl GWAA 5.65.2.doc
(Revised 11/2000) CS ,00,2
Exhibit "A"
Exhibit"A"is part of an Oil and Gas Lease dated the 22nd day of September, 2008, from 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 Petro-Canada Resources (USA) Inc. whose address is 999 18`" Street Suite 600, Denver,
Colorado 80202, as Lessee.
Township 5 North, Range 65 West, 6th Principal Meridian
Section 2: A tract of land located in the E/2SE/4 of Section 2 lying south of
Colorado State Highway#263 and north of the north right of way line of
the Ogilvy Ditch, being a portion of the tract of land described in the
Executors' Deed dated January 15, 1975, recorded in Book 732,
Reception No. 1653750, as follows:
Beginning at the Southeast Corner of said Section 2, and considering
the East line of the Southeast Quarter(SE/4) of said Section 2, as
bearing North 01°05'46" East, with all other bearings contained herein
relative thereto; thence North 01°05'46" East, along the East line of the
Southeast Quarter(SE/4) of said Section 2, 1429.39 feet to a point on
the South right-of-way line of Colorado State Highway#263; thence
South 60°39'19"West, along said South right-of-way line, 1535.88 feet;
thence South 01°02'52"West, 672.04 feet to the South line of the
Southeast Quarter(SE/4) of said Section 2; thence South 89°48'16"
East, along the South line of the Southeast Quarter(SE/4) of said
Section 2, 1323.77 feet to the Southeast corner of said Section 2, said
point being the Point of Beginning; said described parcel of land
contains 31.935 acres, more or less.
Containing 6.106 acres, more or less
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C:1Documents and SettingslrantoniolDesktoplWeldeountyogl GWAA 5.65.2.doc
(Revised 11/2000)
pilli Petro-Canada 18thces(USA)Inc.
Suite 600,999 18"'Street
Denver,CO 80202-1904
n ociu UM Telephone: (303)297-2100
Facsimile: (303)297-7708
September 22,2008
Board of Weld County Commissioners
915 10th Street
Greeley, Colorado 80632
Re: Oil and Gas Lease(small tract)
Weld County, Colorado
Township 5 North,Range 65 West, 66 P.M.
Section 2: A tract of land located in the E/2SE/4
Gross Acres: 6.106 Net Acres: 3.053
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 'Ye).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,
yan D. Antonio, Landman
Petro-Canada Resources(USA)Inc.
LEoa58
PETRO-CANADA RESOURCES (USA) INC. Page 1 of 1
999 18th Street,Suite 600
Denver,Colorado 80202
(303)297-2300
VENDOR NO. VENDOR NAME CHECK DATE CHECK NO. CHECK TOTAL
100780 WELD COUNTY BOARD OF COMMISSIONERS Sep-18-2008 46510 5200.00
VOUCHER VENDOR INV # INV DATE TOTAL PRIOR PMTS NET
AMOUNT & DISCOUNTS AMOUNT
09-AP-170 091808 09/18/08 200. 00 0. 00 200 .00
LEASE BONUS (SMALL TRACT)
TOTAL INVOICES PAID 200.00
0QTE5 RECEIPT ci-d? -a038
DATE NO. 19 0 414
r)CC C\I
RECEIVED FROM P-172,121 -Lkil--g i. IALeo (UM) LW
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OWinO ADDRESS /� /
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D I- O >, ACCOUNT HOW PAID n /( L t
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ACCOUNT CASH
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0U-I (R PAID CHECK e7S1.
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DUE ORDER
!'2001 IEDFa1Ul .!8L808
DETACH AND RETAIN THIS STUB
Esther Gesick
From: Esther Gesick
Sent: Thursday, September 18, 2008 10:59 AM
To: 'Antonio, Ryan'
Subject: FW: 5N-65W Sec 2 Deeds and Documents
Attachments: FOSmallTract.doc
FOSmalfhact.doc
(48 KB)
Ryan,
The Small Tract Lease Form is attached. Please complete and then return the signed
original to me for processing on the Board's Agenda. If you have any questions, just let
me know.
Thanks
Esther E. Gesick
Deputy Clerk to the Board
915 10th Street
Greeley, CO 80631
(970) 356-4000 X4226
(970) 352-0242 (fax)
Original Message
From: Bruce Barker
Sent: Thursday, September 18, 2008 10:34 AM
To: Esther Gesick; Stephanie Arries
Cc: 'Antonio, Ryan'
Subject: RE: 5N-65W Sec 2 Deeds and Documents
I am convinced Weld County owns the oil and gas, and should be the lessee. Go ahead and
proceed with a small tract lease.
Bruce.
Original Message
From: Esther Gesick
Sent: Thursday, September 18, 2008 10:23 AM
To: Bruce Barker; Stephanie Arries
Cc: Antonio, Ryan; Esther Gesick
Subject: FW: 5N-65W Sec 2 Deeds and Documents
Bruce or Stephanie,
Ryan Antonio, Petro-Canada, previously requested a small tract lease for the following
legal description, and Bruce stated it was fine to proceed with the net acres of 3 .053;
however, he requested an opportunity to review the title documents to ensure the rights
are in fact owned by Weld County and have not been conveyed to the Airport. Ryan has
submitted the attached documents for your review. If it appears this is the County's, I
will establish a Lease File and proceed with the small tract paperwork.
Thanks - Esther
Esther-
1
Attached is a title chain of all the important docs showing how Weld County acquired
title. After your review, please let me know how to proceed with the leasing process.
Please let me know if you have any questions.
Thanks,
Ryan D. Antonio, Landman
Weld County owns 50% mineral interest in below described lands (6.106 Gross Acres, 3 .053
Net Acres) .
Please let me know how to proceed. Thanks!
Ryan Antonio, Landman
Petro-Canada Resources (USA) Inc.
Tract 3, Township 5 North, Range 65 West, 6th Principal Meridian
Section 2 : A tract of land located in the E/2SE/4 of Section 2 lying south of
Colorado State Highway #263 and north of the north right of way line of the Ogilvy Ditch,
being a portion of the tract of land described in the Executors' Deed dated January 15,
1975, recorded in Book 732, Reception No. 1653750, as follows:
Beginning at the Southeast Corner of said Section 2, and considering the East line of the
Southeast Quarter (SE/4) of said Section 2, as bearing North 01°05'46" East, with all
other bearings contained herein relative thereto; thence North 01°05'46" East, along the
East line of the Southeast Quarter (SE/4) of said Section 2, 1429.39 feet to a point on
the South right-of-way line of Colorado State Highway #263; thence South 60°39' 19" West,
along said South right-of-way line, 1535.88 feet; thence South 01°02'52" West, 672.04 feet
to the South line of the Southeast Quarter (SE/4) of said Section 2; thence South 89°
48'16" East, along the South line of the Southeast Quarter (SE/4) of said Section 2,
1323.77 feet to the Southeast corner of said Section 2, said point being the Point of
Beginning; said described parcel of land contains 31.935 acres, more or less.
Containing 6.106 acres, more or less.
2
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