HomeMy WebLinkAbout20080713.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - BONANZA CREEK
ENERGY OPERATING, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Bonanza Creek Energy Operating Company, LLC, P.O. Box 21974, 4900
California Avenue, Suite 350B, Bakersfield, California 93309, has requested that the bidding
procedure be waived according to the policy as set forth in the Weld County Administrative Manual
for parcels less than five acres, on the following described mineral acres:
SW1/4 of Section 35, Township 5 North, Range 63
West of the 6th P.M., Weld County, Colorado
WHEREAS, Bonanza Creek Energy Operating Company, LLC, is offering to lease the
above described mineral acres, containing 3.27 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Bonanza Creek Energy Operating
Company, LLC, 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 Bonanza Creek Energy Operating Company, LLC, to waive
the bidding procedure on an Oil and Gas Lease concerning the above described mineral acres, be,
and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Bonanza Creek Energy
Operating Company, LLC, to lease mineral acres, as hereinabove stated, be, and hereby is,
accepted.
2008-0713
LE0249
(7g ' /Po✓3A i 0-us.) 04,61 (08
WAIVE BID PROCEDURE - BONANZA CREEK ENERGY OPERATING, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 3rd day of March, A.D., 2008.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: ��
� H. Jerke, Chair
Weld County Clerk to the Board
IF61qG. r ° 1� I �.
BY: � /"li�,�f� Rgbeft! Ms e 7Pr�em
Deputy Clerk to the Bo rd � . ._, / L
Will. F. Garcia
:
David E. Lon
n Attorney
ougl s Rademach r
7 u
Date of signature:
2008-0713
LE0249
31B WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this 22nd day of February, 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:
Bonanza Creek Energy Operating Company, LLC, a Delaware limited liability company
P.O. Box 21974
4900 California Avenue-Suite 350B
Bakersfield, CA 93309
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$232.70 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 5 North, Range 63 West, 6th P.M.
Sections 35: The following two parcels of land:
1. A strip of land 25 feet feet in width being 25 feet on the east side of the west section
line of said Section 35
2. A tract in the SWY, of Section 35 more particularly described as follows:
Considering the West line of Section 35 to bear N 0°17'19" East and with all other
bearings contained herein relative thereto; thence Beginning on the West line of
said Section 35 from which point the Southwest section corner bears S 0°17'19"
West a distance of 1,326.75 feet; thence S 0°17'19" East a distance of 514.33 feet;
thence 200.63 feet along the arc of a curve to the left whose radius is 1,004.93 feet,
central angle is 11°26'20" and whose chord bears N 6°39'20" East a distance of
200.3 feet; thence N 0°56'10" East a distance of 315.0 feet; thence N 89°03'50"
West a distance of 25.77 feet, more or less to the point of beginning.
and containing 3.27 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
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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 accruing as to the acreage surrendered.
3. In consideration of the premises the said Lessee covenants and agree to pay Lessor
twenty percent(20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and
other hydrocarbons produced and saved from the leased premises.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may
pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and
covered by this lease, such payment or tender to be made on or before the anniversary date of this
lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter
on or before the anniversary date of this lease during the period such well is shut in. If such
payment or tender is made, it will be considered that gas is being produced within the meaning of
this lease.
5. If said Lessor owns less than the entire oil and gas fee simple estate in the above
described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be
paid to the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas
mineral fee simple estate.
6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water
produced on said land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor,Lessee shall bury Lessee's pipe lines below plow depth.
8. No well shall be drilled nearer than 200 feet to any occupied building on said
premises without the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and
fixtures placed on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part.
No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on
Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded
instruments or documents and other information necessary to establish a complete chain of record
title from Lessor, and then only with respect to payment thereafter made. No other kind of notice,
whether actual or constructive, shall be binding upon Lessee. No present or future division of
Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the
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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 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
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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.
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 Lessee has signed this agreement, the day and year first above
written. .v f I
ATTEST: - y<; , ,t Iis )c:
r
Weld County Clerk to the Board BOARD OF COUNTY COMMISSIONERS
.WELD COUNTY, COLORADO
By: !/'ii/_...1f _5 .,y.S vA, `2 —w
Deputylerk to the Board (.--/ Chair, Board of County Commissioners
MAR 0 3 2008
TO BOA"D OF COUNTY
ATTESTING NBonanza Creek Energy
COMMISSIONER SIGATURE' ONLY LESSEE: Operating Company, LLC
l-
By: /f
William G. Crews, Agent
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STATE OF COLORADO )
ss
COUNTY OF WELD
The foregoing instrument was acknowledged before me this 22-S. day of February,
2008, by William G. Crews as Agent for Bonanza Creek Energy Operating Company, LLC, a
Delaware limited liability company, on behalf of said company.
Witness my hand and official seal.
My Comm'_l�•t%•• """•
••w...J'' g /S /2
'" Notary P blic
Y f 0ThRY~
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NOTES
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X2001 BKIMBP1 4 ere08
.. rws & Zeren, LLC
lor
William G. "Bill" Crews, CPL
Certified Professional Landman
8203 W.20th Street,Suite B
Greeley,CO 80634
Phone:970-351-0733 303 484 I t„ Fax iridsp ing 0
E-mail:wgcrews@m'rndspring corn
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