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HomeMy WebLinkAbout20081240.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 strip of land 60 feet wide, along the north side of the SE1/4 of Section 29, as conveyed by a Quit Claim Deed, dated October 7, 1887, recorded in Book 43, Page 495, located in Township 4 North, Range 68 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 3.66 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, 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 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. 2008-1240 LE0251 /6) : 7i-c1R°Oy ) os/s4 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 28th day of April, A.D., 2008. BOARD OF COUNTY COMMISSIONERS r WELD COUNTY, COLORADO ATTEST: ° ' i l� jigs] �:;: �� "am H. rke, Chair Weld County Clerk to th � ro � y �� � � ) r ,` _pc:, Robert . Marsden, Pro-Tem Dequ y Cler o the Board "� i W m F. Garcia APPROVED AS TO FORM: GL), c� David E. Long ( /PIQ�/ f0i9 tie , i, Cour t r Attornby ov ougl Rademach Date of signature: -5' I DER 2008-1240 LE0251 r At. O WELD COUNTY OIL AND GAS LEASE (Small Tract) f THIS AGREEMENT, made and entered into this yt~ day of gCk''- , 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 181h 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 4 North, Range 68 West, a P.M. Section 29: A strip of land 60 feet wide along the North side of the SE/4 of Section 29, as conveyed by a QUIT-CLAIM DEED dated October 7, 1887, recorded in Book 43, Page 495 and containing 3.66 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 - o 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 cc 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 -g, said land or on acreage pooled therewith, the production thereof should cease from any cause after the ca primary term, this lease shall not terminate if Lessee commences additional drilling or re-working T 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 �a > expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is _?n produced from the leased premises or on acreage pooled therewith. =M _oo 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees -g c 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 - o -z o surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to o° Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as N to the acreage surrendered. —OD le =rn �M ° —m T C:1Documents and SettingslrantoniolDesktop\Weld Col 2008-1240 � r . 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 9 different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of o 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 o°C leasehold owner. -UoC 11. Lessee, at its option, is hereby given the right and power at any time and from time to - o" time as a recurring right, either before or after production, as to all or any part of the land described herein dand as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the a 3 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 S a d necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to —!R y such other land, lease or leases. Likewise, units previously formed to include formations not producing oil o or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit c shall be accomplished by Lessee executing and filing of record a declaration of such unitization or c reformation, which declaration shall describe the unit. Any unit may include land upon which a well has N o theretofore been completed or upon which operations for drilling have theretofore been commenced. —-r c Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit mom o which includes all or a part of this lease shall be treated as if it were production, drilling or reworking N operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein-ce,la c C:\Documents and Settingslrantonio1Desktop\Weld County Lease.doc —16 01 (Revised 1112000) 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. — I- - 0 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and u actions, including the defense of such claims or actions, based upon or arising out of damage or injury, cc 0 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 - =C regulation. moo — o d 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 � 2 „ gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel d this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any 'r' ch default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified _°COt'o mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to rm _coo cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date o o of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such =N o failure or default is not corrected with thirty (30) days after the mailing of such notice, and if Lessee does o6 not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by - cc operation of the paragraph without further action by Lessor, or further notice to Lessee. -Nle _ 07 16. All of the provisions of this lease shall be binding upon the heirs, personal —-i representatives, successors and assigns of Lessor and Lessee. C:1Documents and Settingslrantonio1DesktoplWeld County Lease.doc (Revised 1112000) • 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, ess ee sii n d •;011,m1:•••nt, the djj and year first above written. ATTEST: '1� ` �' 1E \ Weld County Clerk to the Boards 0: .. )' OF COUNTY COMMISSIONERS ; . dal OUNTY, COLORADO Depty -rk to the Board NZ u / . ' .\ /, Board of County Commissioners r ill - `illiam H. Jerke APR 2 8 2008, ATTESTING 10 BOARD CF CO'JtITY LESSEE: _i. LY Petro-Canada Resources (USA) Inc. Gfa,,,.oaWi. ' / � Ryan D. Antonio Landman STATE OF COLORADO ss COUNTY OF DENVER )The foregoing instrument was acknowledged before me this I I�f irk day of April, 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. Q �t My Commission Expires: 4n I Aq t C`x`["�,./M� " Tr No ry Public �gg\cA�d! 4 • • $OTARy; • (40 *Commissmn Expires April 29,2009 1 11111111111 1111111111111111111111111111111111111111111 3553532 05112/2008 03:51P Weld County, CO 4 of 4 R 0.00 D 0.00 Steve Moreno Clerk & Recorder C:\Documents and SettingslrantoniolDesktop\Weld County Lease.doc (Revised 1112000) plirl Petro-Canada Resources(USA)Inc. Suite 600,999 Street Denver,CO 80202-1904 nnrOQNADA Telephone: (303)297-2100 Facsimile: (303)297-7708 April 14,2008 Board of Weld County Commissioners 915 10th Street Greeley, Colorado 80632 Re: Oil and Gas Lease(small tract) Weld County,Colorado Township 4 North,Range 68 West,61h P.M. Section 29: A strip of land 60 feet wide along the North side of the SE/4 of Section 29, as conveyed by Quit Claim Deed dated October 7, 1887, recorded in Book 43,Page 495 Gross Acres: 3.66 Net Acres: 3.66 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 DAntonio, Landman Petro-Canada Resources(USA) Inc. Petro-Canada Resources(USA)Inc. PEr�- Ryan D.Antonio Landman Suite 600,999 18th Street Denver,CO 80202-2499 Telephone: (303)865-7458 Facsimile: (303)297-7708 Cell: (303)621-5196 E-mail: ryan.antonio@petro-canada.com LEO2 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 Apr-14-2008 40419 $200.00 VOUCHER VENDOR INV # INV DATE TOTAL PRIOR PMTS NET AMOUNT & DISCOUNTS AMOUNT 04-AP-228 41108 04/11/08 200 . 00 0.00 200.00 LEASE BONUS (SMALL TRACT) TOTAL INVOICES PAID 200.00 Elizabeth Strong From: Antonio, Ryan [Ryan.Antonio@petro-canada.com] Sent: Thursday, April 24, 2008 10:16 AM To: Elizabeth Strong Subject: RE: small tract oil and gas lease Great! Thanks for the update. 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 Original Message From: Elizabeth Strong [mailto:estrong@co.weld.co.us] Sent: Thursday, April 24, 2008 9:58 AM To: Antonio, Ryan Subject: small tract oil and gas lease Hi Ryan. I just wanted to let you know that this item will be presented to the Board on Monday, April 28th. You are welcome to attend; however, it is not necessary. Please let me know if you have additional questions. Elizabeth 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 l'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 avise, par les presentee 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 recu par erreur, veuillez en aviser l'expediteur original immediatement. Nous respectons les demandes similaires qui touchent la confidentialite des communications par courrier electronique. 1 Elizabeth Strong From: Esther Gesick Sent: Wednesday, April 16, 2008 11:18 AM To: Antonio, Ryan; Marcia Walters Cc: Elizabeth Strong Subject: RE: Bid Documents Ryan, We received your Lease and payment. We are requesting the Clerk and Recorder send us a copy of the recorded document you referenced to set up a file and then it will be listed on the next available Agenda. We'll be sure to notify you of the date, although your attendance is not mandatory. 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: Antonio, Ryan [mailto:Ryan.Antonio@petro-canada.com] Sent: Monday, April 14, 2008 2:02 PM To: Esther Gesick; Marcia Walters Subject: RE: Bid Documents Hello- I am mailing out the small tract oil and gas lease along with bonus payment. Please let me know if you need anything else. Also, do I need to attend the Board meeting? Please let me know. 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: Friday, April 11, 2008 8:55 AM To: Marcia Walters; Antonio, Ryan Subject: RE: Bid Documents Good Morning Ryan, I've attached the Small Tract Oil and Gas Lease, and the Mineral leasing policy is pasted below for your reference. Upon receipt of a signed/notarized Lease and payment, the Clerk to the Board's Office will list the matter as a regular item of business on the next available agenda. The Board meets every Monday and Wednesday, at 9:00 a.m. 1 Sec. 2-2-70. Mineral leasing policy. A. The County owns mineral rights for approximately forty thousand (40,000) acres. On November 19, 1986, the Board of County Commissioners adopted the following mineral leasing policy by resolution: 1. The term of the leasing period shall be a maximum of three (3) years. 2. There shall be a continuation of the sealed bid process with the amendment that the top two (2) bidders and any other bidder within ten percent (10%) may participate in an auction. The opening of the sealed bids and the auction shall be held on the same day. 3 . A bid of at least ten dollars ($10.00) per acre shall be the minimum amount required. 4 . There shall be a continuation of the requirement for certified funds. 5. Where there is a conflict concerning the ownership of the lease, the owner of the lease shall provide evidence of ownership. 6. Royalty interest in the production to be paid to the County shall be at least twenty percent (20%) . Specific amount of royalty interest shall be set by the Board of County Commissioners prior to the bidding process. 7. Royalty interest in the production to be paid to the County shall be twenty percent (20%) when bidding is waived on small parcels under five (5) acres, with a minimum of a two-hundred-dollar royalty bonus for the parcel. B. On August 29, 1985, the Board of County Commissioners adopted the following policy for extending the terms of all mineral leases. The Board will extend the terms of all mineral leases in which it is the Lessor according to the following conditions: 1. No lease term will be extended for more than six (6) months from the original expiration date as contained in the mineral lease. 2. The Lessee shall pay to the Lessor the sum of one-third ('/3) of the original bonus, with a minimum bonus of ten dollars ($10.00) per acre. 3 . The Lessee must pay to the Lessor the sum of one dollar ($1.00) per acre leased as delayed rental for the term of the extension. 2 4 . The royalty will remain the same as in the original lease. 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: Marcia Walters Sent: Thursday, April 10, 2008 11:01 AM To: Antonio, Ryan Cc: Esther Gesick Subject: RE: Bid Documents I'm not sure on that question so maybe Esther can help you. :) Original Message From: Antonio, Ryan [mailto:Ryan.Antonio@petro-canada.com] Sent: Thursday, April 10, 2008 11:00 AM To: Marcia Walters Subject: RE: Bid Documents Marcia- It was nice to meet you yesterday! Anyways, have a quick question. We are drilling a well, and have a small unleased Weld County tract and need to know what the process is of getting a lease from Weld County. Thanks, Ryan D. Antonio, Landman Petro-Canada Resources (USA) Inc. 999 18th Street, Suite 600 Denver, Colorado 80202 303-865-7458 (Office) 3 303-621-5196 (Cell) 303-297-7708 (Fax) ryan.antonio@petro-canada.com Original Message From: Marcia Walters [mailto:mwalters@co.weld.co.us] Sent: Monday, March 31, 2008 10:23 AM To: Antonio, Ryan Subject: RE: Bid Documents Ryan, I can send them to you or you can get them off of our website quicker and use your own envelopes. (notice the instructions) www.co.weld.co.us under Purchasing. Do you want me to send them to you? Let me know! Thanks! Marcia Original Message From: Antonio, Ryan [mailto:Ryan.Antonio@petro-canada.com] Sent: Monday, March 31, 2008 10:19 AM To: Marcia Walters Subject: Bid Documents Marcia: I just wanted to let you know that I faxed the bid request form a few minutes ago. Please let me know if you have any questions. 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) 4 303-297-7708 (Fax) ryan.antonio@petro-canada.com 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 1'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 avise, 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 1'avoir recu par erreur, veuillez en aviser l'expediteur original immediatement. Nous respectons les demandes similaires qui touchent la confidentialite des communications par courrier electronique. 5 Hello