HomeMy WebLinkAbout830009.tiff ARS949793 RESOLUTION
RE: APPROVE REQUEST OF OILCOM CORPORATION TO WAIVE BIDDING
PROCEDURE CONCERNING AN OIL AND GAS LEASE AND ACCEPTING
OFFER TO LEASE MINERAL ACRES
,n p WHEREAS , the Board of County Commissioners of Weld County,
oU
Colorado, pursuant to Colorado statute and the Weld County Home
0
o Rule Charter, is vested with the authority of administering the
o affairs of Weld County, Colorado, and
o w WHEREAS , Oilcom Corporation has requested that the bidding
a
o procedure be waived concerning an oil and gas lease on the follow-
°
VD I:4 ing described mineral acres :
Township 6 North - Range 67 West
Section 15: A parcel of land in the Northeast
M a quarter of the Southeast quarter of Section
co u
15 (NE/4SE/4 Section 15-6-67) described as
H H follows: Beginning at a point 30' West of the
Northeast corner of the Southeast quarter of
cv
said Section, thence West for a distance of
17 feet; thence 18°24 ' West 64 ft. , thence
• p South 25°48 ' West 104 ft. to the northerly ROW
Ch
• w line of the GWRR; thence North 38° 46 ' East
-zrz along said ROW line 105 ft. , thence North 89 '
cAZ
to pt. of beginning.
U a Containing 0 . 10 acres, more or less.
W 4
WHEREAS, after review, the Board of County Commissioners
ll1
rl O
O '"' found that Oilcom Corporation did show good cause for waiving
:° 44 the bidding procedure on said oil and gas lease, and
WHEREAS, said lease is to be for a period of three years
with a paid up lease of Twenty and NO/100 Dollars ($20 . 00) , a copy
of said lease being attached hereto and incorporated herein by
reference, and
WHEREAS, Weld County is desirous of accepting said offer
from Oilcom Corporation to lease the above described mineral
acres.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the request of Oilcom
Corporation to waive the bidding procedure on an oil and gas
lease concerning the above described mineral acres be, and hereby
is, approved.
BE IT FURTHER RESOLVED by the Board that the offer of Oilcom
Corporation, 1600 West First Street, Loveland, Colorado 80537 , to
lease the above described mineral acres for a period of three (3)
830009
l it Ll.
Page 2
RE: WAIVE BIDDING PROCEDURE - OILCOM CORPORATION
in O
0o u years, commencing November 30, 1983, with a paid up lease in the
NO
o amount of Twenty and NO/100 Dollars ($20. 00) be, and hereby is,
ca
o w accepted.
03
o a The above and foregoing Resolution was, on motion duly made
vrw
°x
O and seconded, adopted by the following vote on the 30th day of
U
a November, A.D. , 1983.
o sina7 �j Q BOARD OF COUNTY COMMISSIONERS
~ a ATTEST: ( tnn� f l�l�s✓ WELD COUNTY, COLORADO
ma
i z Weld County Clerk and Recorder �X�..
~
w and Clerk to the Board Ch ck Carlsonthairman
N E
ra
70-7.2.4-1
__
m w Lpeputy County Clerk JY.0-174,,
T. Martin, Pro-Tem
t--
or,
r-i A'� fN
APPROVED AS TO FORM: f/Y�
Gene R. Brantner
to to ett a
ot odnty Attorney Norman Carlson
rl
mw � � . �. ��� i �..•_..�
J qu-ti ine 'o nson
DAY FILE: December 12 , 1983
WELD COUNTY. COLORADO OIL AND GAS LEASE
•
THIS AGREEMENT made this 30thlay of November'198 uetween Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis-
sioners, CORPORATION I , en16O01 W. First' Staley Greeley, CLesssee,do WITTNNESSETHessor (whether one or more), and
Loveland, CO 80537
u,O Dollars (S 20 . 00 )•
o U 1. lessor in consideration of TWENTY DOLLARS
o in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases
and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and
re)O producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other
o structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees,
CI (subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights
a therein being situated in the County of Weld, State of Colorado, and described as follows:
0 w Township 6 North - Range 67 West
Section 15 : A parcel of land in the Northeast quarter •
• Sof the Southeast quarte
o w of Section 15 (NE/4SE/4 Section 15-6-67) described as follows : Beginning at e
C4 point 30 ' West of the Northeast corner of the Southeast quarter of said Sec
-
o Lion, thence West for a distance of 17 feet ; thence 18°24' West 64 ft , thence
u South 25°48 '
w West 104 ft . to the northerly ROW line of the GWRR; thence North
LO x 38°46 ' East along said ROW line 105 ft , thence North 89 ' to pt . of beginning.
•• w and containing .0 . 10 acres, more or less ( 0 10 net mineral acres).
0
'—. x 2. Subject to the other provisions herein contained, this lease shall be for a term oftw0 years from this date
a
W (called "primary term") and as long thereafter as o11, gas or other hydrocarbons, is produced from sold land hereon er,
en I1 or drilling or reworking operations are conducted thereon.
co O
3. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the
M Z same to he delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected;
tiH
---,al Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevail ng
N E for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub-
riu7stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products
41 therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the
rn wells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
m w cents (50e) per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except water
from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
Ch
cy, z any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is
rn Z shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or
ti 4 any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender
o Co Lessor as royalty, on or before one year from the date sucn well is shut in, the sum of $100.00 per well, and, if
u a such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
W Ic4 and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
a X lease shall continue in effect for successive periods of twelve (12) months each.
u1 d' 4 1 n .a Kcrelnefte, • •r; a .n er •cf•re •nc year fr•,.-
0 o
o el this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lesse
'H 'H nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardl • changes
CO W in ownership of said land or the rentals either by conveyance or by the death or incapacity of L- the sum of
Dollar(s) ($ ) per net mineral acre, (herein rental), which shall
-------9-- cover the privilege of deferring commencement of operations f;r drilling for a per •+ • twelve (12) months. In like •d
9 manner and upon like payments or tenders annually the commencement of opera for drilling may be further deferred H
H for successive periods of twelve (12) months each during the primal- - . The payment or tender of rental herein d
I referred to may be made in currency, or check at the option • essee; and the depositing of such currency, or r
[ check in any post office, properly addressed to the Le , on or before the rental paying date, shall be deemed 'pay- c
'd ment as herein provided. The down cash payment -•nsideration for the lease according to its terms and shall not
eci
he allocated as mere rental for a period. - see may at any time execute and deliver to Lessor or place of record
a release or releases covering any on or portions of the above described premises and thereby surrender this
lease as to such portion or •• ons•and be relieved of all obligations as to the acreage surrendered, and thereafter
the rentals payable he •er shall be reduced in the proportion that the acreage covered hereby is reduced by said
5. •Should any well drilled on the above described land during the primary term before production is obtained be
j a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event.
if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur-
sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling
or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall re-
sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals,
shall continue in force just as though there had been no interruption in the rental payments. If during the last year
of the primary term and prior to the discoverycof oil, gas, or other hydrocarbons on said land Lessee should drill a
dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the
primary term the production thereof should cease during the last year of said term from any cause, no rental payment
or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the
expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well , this
lease neverthelessshall continue in force as long as such drilling or reworking operations continue, or if, after the
expiration of the primary term, production on this 'lease shall cease, this lease nevertheless shall continue in force
if drilling or reworking operations are commenced within sixt.r (60) days after such cessation of production; if pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations.
conducted without cessation of more than sixty (60) days, thi- lease shall continue as long thereafter as ofl, gas.
other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had
without cessation of such drilling or reworking operations for more than sixty (60) consecutive days.
6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease,
or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's
judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to
be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(107•) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or well unit pattern that may be prescribed by governmental a -Torities having jurisdiction. Lessee may pool or com-
bine acreage covered by this lease, or any portion thereof, a above provided, as to oil or gas in any one or more
strata, and units so formed need not conform in size or area 4th the unit or units into which the lease is pooled or
combined as to any other stratum or strata, and oil units nee' not conform as to area with gas units. The pooling in
IT IS FURTHER AGREED THAT THE LANDOWNERS ROYALTY BE CHANGED FROM
ONE—EIGHTH TO FIFTEEN PERCENT.
u, •
o U
0
'It 0 one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into
o other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ-
o ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment
W of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil
CD
0 al or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be considered for all purposes,
except the payment of royalties, as if such operations were on or such production were from or such completion were
o IX on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease.
yr W In lieu of the royalties elsewhere herein specified, Lessor shall receive from a unit so formed, only such portion of
athe royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears
o to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con-
tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether
Wx before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the
enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is
,,a so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and
o describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not
afiled until after production is obtained on the unit as originally created, then and in such event the supplemental
declaration of unitization shall not become effective until the first day of the calendar month next following the
r, .-1 filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of
co U termination.
on H 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands
• W with other lands in the same general area by entering into a cooperative or unit plan of development or operation
N E approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate
''i En any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed
r4
modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development
en D or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall
CA W be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease
G+ shall not terminate or expire during the life of such plan or agreement. In the event that said above described
• 2 lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or
a' z operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then
o FC 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 al-
() Z located and not to any other tract of land and the royalty payments to be made hereunder to Lessor shall be based
Wrci4 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.
tri
o rn 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the
''- leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at
W Ga any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said
land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines
below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now
on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops,
or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are
.to be returned to original condition within time designated by Lessor.
9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall
extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land,
rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee.
No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be
furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence
of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated
portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners ratably
according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease-
hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli-
gations with respect to the assigned portion or portions arising subsequent to the date of assignment.
10. 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, or if prevented by an act of God, of the public enemy, labor disputes, inability
to obtain material, failure of transportation, or other cause beyond the control of Lessee.
If during the term of this lease, oil orJgas or other hydrocarbons is discovered upon the leased premises, but
Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall
nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro-
duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities
or drilling or reworking operations are continued as elsewhere herein provided.
11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however,
it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to
be paid Lessor shall be reduced proportionately.
12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above
described land without the written consent of the Lessor.
13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore-
said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof
which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said
lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado
now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision
herein in conflict therewith shall be inoperative and void.
14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto,
their heirs, administrators, successors and assigns.
in o
O O
0
'no
0
Q 15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether
a it is signed by any of the other parties.
o W
0 3 IN WITNESS WHEREOF, this instrument is executed on the date first above written.
O W. BOARD OF COUNTY COMMISSIONERS
CI _ WELD .O NT COL
a
O
U
41
w C4
ri
fj �y
w Qug ( t,�Rn 1 FRfCJ
,o z ATTEST: (/
a
m a Weld County Clerk and Recorder
co U and Clark-ip the Board C
S\CCWISXN%
mI-I H By: LA -�
W
N N E i
r-I CO
d
LESSEE:
°‘‘,.11.l .,
: * : —c•-•vtr ' z
r-i < a STIETE CDL0�pp0 )4
O tr. P . �1-/i, Cl" : }Z. SS.
o a .COW tic.oF-WEta--'Q ci-
a st I� _ j
Theo4oregoirig instrument was acknowledged before me this day of � '�iII � 19 Yj by ,44.,
,-I O g , - Pic v .2-I rQy,, c7fr, C.ID Q.®,-r, 0 L i a-c1 Q- C.-n1
O M
My commission expires: _j-/-,cj Witness my hand and official seal.
k4
or u c
1.
/x 42/3
111 it a
J p Li; g tiI ii 0L "IQ 1
in W ao r-I ill a0 o D I M 4 �
N w z r sQQ ]]],] O
La S w z O •J Oir
WW ro �' CO 4 . `� ��
I Ns
il L.01 ii. c'g illW == � � ,1 c) LLI
i i
;4 'uj
N a ulQ of
vs Form Win,Jmr lcez '>•"' /2c- 2`O/20/7,97 RETURN RECEIPT
(Ii)
()ikom corporation
1600 west first street•loveland,colorado 80537•telex:wu450694•telephone 303/669-4885
December 5 , 1983
Weld County Board of County Couuuissioners
915 10th Street
Weld County Centennial Center
Greeley, Colorado 80631
Attention: Jeannie
RE : Oil & Gas Leases as discussed
at November 30th meeting
Dear Jeannie :
Please find enclosed two (2) original oil and gas leases
on Section 1 and Section 15 . Also, enclosed are cheeks representing
the amounts the Board agreed upon on last Wednesday. Thank you again
for your assistance. Please return the completed lease forms to me
at the following address :
R. M. RICHARDSON
550 East 12th Ave . - #1906
Denver, Colorado 80203
V y, truly yours ,
" ' �R in M. Richardson
/ / Ag nt for Oilcom Corporation
•
engineering • procurement • construction • import-export • oil-exploration
C)no iUM'S I c () m corporation
.__.
mks rir
1600 west first street 2615 waugh drive, suite 507
loveland.colorado 80537 houston, texas 77006
303/669-4885 telex, wu450694•
October 19, 1983 CpriiS cl,""Th
Board of County Commissioners QV 2 4 1983
Weld County, Colorado VeM�
Greeley, Colorado 14:A 9- v
GREELEY. •LO,
RE: Acreage owned by the county,
described in attached deed.
Attention: Jeannie
Dear Jeanie:
The purpose of this letter is to request the Board to waive the Bid Procedure
to lease the acreage described in the attached deed.
Oilcom Corporation has all the surrounding. acreage under lease, and is
offering the following terms: $100/acre with 15% royalty.
Please contact me at the following address and telephone numbers:
Robin M. Richardson
550 East 12th Ave. - #1906
Denver, Colorado 80203
573-7336 - office
831-0570 - home
Thank you for your assistance in this matter.
ry tr y yours,
d
o n . Richardson
oil & gas development • project management • engineering • procurement • construction
Hello