HomeMy WebLinkAbout20082423.tiff 483 AEI 11111 11111111111 ���� 111111111111 ��� 11111 ���� IIII
35824 10/08/2008 03:31P Weld County, CO
2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
024 RESOLUTION
RE: ACTION OF THE BOARD CONCERNING EXTENSION OF OIL AND GAS LEASE
COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO-SW114,
S14, T5N, R62W
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, Weld County is the owner of vast mineral lands located in Weld County,
Colorado, and
WHEREAS, Bonanza Creek Energy Operating Company, LLC, submitted a request to
extend the lease of 160.0 net mineral acres, more or less, described to-wit:
SW1/4 of Section 14, Township 5 North, Range 62
West of the 6th P.M., Weld County, Colorado, and
WHEREAS, Weld County does not desire to approve the request submitted by Bonanza
Creek Energy Operating Company, LLC, to extend the lease on the above-described mineral
acreage for$10.00 per net mineral acre, for a total sum of$1,600.00, together with a rental fee of
one dollar($1.00) per net mineral acre, to run for a period of six (6) months.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County,Colorado,that the request submitted by Bonanza Creek Energy Operating Company, LLC,
to extend the lease on the above-described mineral acreage for $10.00 per net mineral acre, for
a total sum of$1,600.00, together with a rental fee of one dollar($1.00) per net mineral acres, to
run for a period of six (6) months, be, and hereby is, denied.
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3584483 10/16/2008 12:05P Weld County, CO
1 of 2 R 0.00 0 0.00 Steve Moreno Clerk& Recorder 2008-2423
LE0223
00 ; 73Ocvq-N-2/1 /O-o ? -08'
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358 10/08/2008 03:31P Weld County, CO
2 R 0.00 0 0.00 Steve Moreno Clerk & Recorder
RE: DENY EXTENSION OF OIL AND GAS LEASE COVERING CERTAIN PROPERTY OWNED
BY WELD COUNTY, COLORADO - SW1/4, S14, T5N, R62W
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 8th day of September, A.D., 2008.
BOARD OF COUNTY COMMISSIONERS
r
E,il,� WELD COUNTY, COLORADO
ATTEST: G!/ ;�(z/
iii 4: 1'r. illiam H. Jerke, Chairman
Weld County Clerk to the a 'V, I,
�� 1,EXCUSED
/ � Robertt.. Mas Pro-Tem
BY: )� lac '"` /
De ty Cler to the Board
Willi F. Gar i
ED AS C7- ,k,
• David E. Long
c_____________) V
ount ttorney
I0� ouglas ademacher
Date of Signature:
IBM 11111 111111 11111111 1111111 111 11111 111 Ili
3584483 10/16/2008 12:05P Weld County, CO 2008-2423
2 of 2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder LE0223
BC BONANZA CREEK ENERGY OPERATING. COMPANY, LLC
CORPORATE OFFICE HOUSTON OFFICE DENVER OFFICE
4900 California Ave.Suite 350B 1331 Lamar Street,Suite 1135 41017"Street,
Bakersfield,CA 93309 Houston,TX 77010 Suite 1380
P.O.Box 21974 Office' (713)337-1250 Denver.CO 80202
Bakersfield,CA 93390 Fax: (713)337-1255 Office: (720)279-2330
Office: (66/)638-2730 www.bonanmcrk.com Fax: (720)279-2331
August 19, 2008
Mr. Lee Morrison
Weld County FED EX: 846187323843
915 10`" Street, 3rd Floor �o
Greeley, CO 80631 EC IF AV
RE: Extension Request AUG 2 2 mog
Weld County Oil and Gas Lease
Pronghom Area, Weld County, Colorado WELD COUNTY
ATTORNEY'S OFFICE
Dear Mr. Morrison:
Bonanza Creek Energy Operating Company has an active drilling program to develop our
leasehold position in what we refer to as the Pronghorn area in Township 5 North, Ranges 61 and
62 West, Weld County, Colorado. Bonanza Creek has an oil and gas lease (copy enclosed for
your reference and convenience) with Weld County in the Pronghorn area that will expire on
September 13, 2008, which is described as follows:
SW/4 Section 14,T5N,R62W, recorded September 23,2005,#3325617,Weld County Records.
As provided in Article 24 of said lease, Bonanza Creek hereby requests an extension of
said lease. To allow us the necessary time to properly schedule our drilling program and obtain
the necessary drilling rigs and permits, it is requested that Weld County grant a one-year
extension to the aforementioned lease.
Additionally, enclosed as required under Article 24 of said lease, please find Bonanza
Creek's check number 43461 in the amount of$1,760.00 covering the $10 per acre bonus and
$1.00 per acre rental payment for a six-month extension. Should Weld County agree to extend
the aforementioned lease for one-year, Bonanza Creek will immediately forward a check to Weld
County in the amount of$1,760.00, covering the additional six-month extension period.
Subject to the above information and facts, Bonanza Creek hereby requests Weld County
grant their consent to extend the above reference lease. Your consideration regarding this
request will be greatly appreciated. Should you have any questions, please call me at 661-377-
3230.
Sincerely,
R. Michael McPhetridge
Vice President Land
Enclosures
2008-2423
BONANZA C *JEER OPERATING C® , LLC
CORPORATE OFFICE ^ ROCKY MOUNTAIN OFFICE
4900 California Avenue-Suite 350B / \ 41017^Street,Suite 1380
Bakersfield,CA 93309 ,1 Denver,CO 80202
P.O.Box 21974 BC Office:720-279-2330
Bakersfield,CA 93390 www.bonanzacrk.com Facsimile:720-279-2331
Office: 661/638-2730
Fax: 661/638-2733
November 29,2005 Diacmpy
Mr. Lee Morrison
Assistant County Attorney DEC 0 6 2005
Weld County
915 10t' Street, 3'd Floor WELD COUNTY
Greeley, CO 80631 ATTORNEY'S OFFICE
RE: Approval of Assignment of Oil and Gas Lease
Mountain States Fuels,Inc./Bonanza Creek Operating Company, LLC
Dear Mr.Morrison:
Pursuant to Article 9 under the lease, Bonanza Creek Operating Company, LLC hereby requests your
written approval and consent of the assignment from Mountain States Fuels, Inc.to Bonanza Creek
Operating Company of the following Weld County Oil and Gas Lease:
• Oil and Gas Lease dated September 14, 2005 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,for its respective interests,c/o Board of County
Commissioners,Lessor and Mountain States Fuels, Inc.,Lessee, covering Section 14: SW/4,
T5N,R62W, and recorded September 23, 2005,#3325617, Weld County Records.
Bonanza Creek is a private independent energy company engaged in the exploration, development,
production,operation and acquisition of oil and natural gas resources.
Bonanza Creek currently maintains a$30,000 blanket bond with the Colorado Oil and Gas Conservation
Commission.
Subject to the above information and facts,Bonanza Creek hereby requests the State grant their consent to
assign the above referenced lease. Should you have any questions or require additional information,
please contact our office in Bakersfield, California at 661.638.2730.
2 � Sincerely,
L.�/t.4.r[Z2s BOYt�
h d ; std
d7-t1 JDD Monica L.Ward-Keller
g• e/4/3 y Business Development Coordinator
• •
g� ASSIGNMENT OF OIL AND GAS LEASE
STATE OF COLORADO
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF WELD
THAT, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned Mountain States Fuels, Inc.,
whose address is 1444 Wazee Street, Suite 350, Denver, Colorado 80202 (hereinafter Ce.ferred to as"Assignor"),
ou^tn
does hereby sell, assign, transfer, set over and convey to Bonanza Creek 9il•rCopmpanyi ,'whose address is 4900
California Avenue, Suite 350-B, Bakersfield, CA 93309 (hereinafter referred to as "Assignee"), all of
Assignor's right, title and interest, subject to the terms and provisions set forth herein, in, to and under, or
derived from, the oil and gas lease (hereinafter referred to as "Lease") located in Weld County, Colorado
specifically described as follows:
Date: September 14, 2005
Lessor: 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
Lessee: Mountain States Fuels, Inc.
Description: Township 5 North—Range 62 West, 6'h P.M.
Section 14: SW/4
Containing 160.00 acres, more or less.
Recorded: Reception No. 3325617
TO HAVE AND TO HOLD the Lease unto Assignee, its successors and assigns forever, and such
terms, covenants and conditions shall be covenants running with the land with each transfer or assignment of the
Lease, subject to the following:
1) This Assignment of Oil and Gas Lease is made by Assignor and accepted by Assignee with
warranty of title by, through and under Assignor, but not otherwise.
2) Assignor will execute and deliver all such other and additional instruments, notices, releases
and all other documents, and will do all such other acts and things, as may be necessary more
fully to assure to Assignee or its successors or assigns all of the respective rights and interests
herein and hereby granted or intended to be granted.
3) By its acceptance of this Assignment of Oil and Gas Lease, Assignee shall comply with and
does hereby assume and agree to perform Assignee's proportionate part of all express and
implied covenants, obligations and encumbrances set forth in the Lease.
EXECUTED this 3151 day of October 2005, but effective as of September 14,2005.
ASSIG OR: �;�s'sooirse,,,
[No attestation required] M ntain States els,Inc.141‘L' '
L
t.
Eric S. McGlone,P sident Okl
l�i 11�• ''
ASSIGNEE:
ATTEST: Dp e.-aiin� •
Bonanza Creek OR-Company,LL ,� _ I
Z
Nf/11) 1
Cklo rett4e4,O _ Oll1S . . Vc
MICHAEL R.STARZER,PRESIDENT
BONANZA CREEK OPERATING COMPANY,LLC
4900 CALIFORNIA AVE.,SUITE 350-B
BAKERSFIELD,CALIFORNIA 93309
3346984 12/13/2005 02:WtLIIIUU y CO
1 of 3 R 16.00 0 0.00 Steve Moreno Clerk& Recorder
_ �•I>MN hl �'
Administration—General Policies Sec.2-2-70
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 (''A) 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.
4. The royalty will remain the same as in the original lease. (Weld County Codification Ordinance 2000-
1;Weld County Code Ordinance 2007-6)
Sec.2-2-80. Uneconomical oil and gas wells.
A. By resolution on November 19, 1986, it is the policy of the Board of County Commissioners that the
Board may grant the operators of oil and gas wells on County leaseholds the opportunity to temporarily suspend
operation on those wells that are,in the operator's opinion,uneconomical to produce.
B. The suspension may be granted by the Board of County Commissioners on receipt of a proper request for
the same. The Board will, however, review such request on a case-by-case basis and will grant or deny the
request as warranted.
C. The suspension will be granted for a term of one (1) year from the next anniversary date of said oil and gas
lease,subject to renewal if appropriate.
D. The request for suspension of production shall include the following:
1. The production costs associated with the well and the current production and revenues received for the
production and other reasons justifying the request for suspension.
2. A listing of all working interest parties in the leasehold(attach Division Order if applicable).
3. A plat showing the amount of production from the well and current production from other producing
wells of non-County ownership in the reservoir(identify operator of non-County production).
4. Proposal of lessee, if required, to protect County mineral lands from drainage by adjoining wells
located on non-County lands.
E. The Board of County Commissioners will not entertain a waiver of the shut-in royalty or per-acre lease
rental provisions of its oil and gas leases. (Weld County Codification Ordinance 2000-1)
2-24
Supp. 13
Esther Gesick
From: Bruce Barker
Sent: Thursday, September 04, 2008 8:21 AM
To: Monica Ward-Keller
Cc: Esther Gesick
Subject: RE:Weld County Lease Extension Request
Ms. Ward-Keller:
Thanks. I received the letter from Bonanza about a week or two ago, and have set the
matter for the Board of County Commissioners' agenda on Monday, September 8, 2008. Our
policies allow for one 6 month extension.
Bruce Barker
Weld County Attorney
Original Message
From: Monica Ward-Keller [mailto:mwk@bonanzacrk.com]
Sent: Wednesday, September 03, 2008 2 :29 PM
To: Bruce Barker
Cc: Mike Mcphetridge; Ralph Mcphetridge
Subject: Weld County Lease Extension Request
Dear Mr. Barker:
Bonanza Creek is seeking an extension of a Weld County Lease that is due to expire
9/13/2008. Attached for your convenience please find a copy of said Weld County Lease
dated 9/14/2005, recorded 9/23/2005, document #3325617 covering the SW/4 of Section 14,
T5N, R62W. This lease was assigned to Bonanza by Assignment of Oil and Gas Lease
effective 9/14/2005, recorded 12/13/2005, document #3346984 .
On August 19, 2008 Bonanza sent a letter (copy attached) to Mr. Lee Morrison requesting an
extension of said lease. Included with the letter was Bonanza' s check number 43461 in the
amount of $1, 760.00 covering the $10 per acre bonus and $1.00 per acre rental payment for
a six-month extension. We would appreciate being granted a one-year extension and should
Weld County agree to extend the aforementioned lease for one-year, Bonanza Creek will
immediately forward a check to Weld County in the amount of $1,760.00, covering the
additional six-month extension period.
We are hopeful that you can and will be able to assist us with the extension of this
lease. Your consideration regarding this request will be greatly appreciated. Should
you have any questions, please call Mike McPhetridge at 661-377-3230 or myself at
661-377-3205.
Sincerely,
Bonanza
Creek Energy Operating Company, LLC
Monica L. Ward-Keller
Business
Development Coordinator
1
Monica L. Ward-Keller
Business Development Coordinator
Bonanza Creek Energy Operating Company, LLC
4900 California Avenue, Suite 350-B
Bakersfield, California 93309
Voice: 661-377-3205
Fax: 661-638-2733
www.bonanzacrk.com
2
BONANZA CREEK ENERGY OPERATING CO., LLC CHECK NO. 43461
P.O.BOX 21974 • BAKERSFIELD,CA 93390 • (661)638-2730
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