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HomeMy WebLinkAbout20071160.tiff kill KerrivtGee Kerr-McGee Oil&Gas OnShore LP 1999 Broadway,Suite 3700,Denver,Colorado 80202 303-296-3600•Fax 303-296-3601 April 12, 2007 VIA FACSIMILE AND U.S. MAIL Weld County Board of County Commissioners 915 10th St P.O. Box 758 Greeley, CO 80632 Re: Correction of Legal Description—Prior Letter Dated April 9,2007 Union Pacific Railroad Company- Site Specific Development Plan and Use by Special Review Permit Union Pacific Railroad Company c/o Tony Love and Gregg Larsen, Applicant Township 3 North, Range 66 West, 6th P.M. Sections 7: E/2E/2SW/4 Weld County, Colorado Dear County Commissioners: This letter is being sent to inform you that Kerr-McGee Oil & Gas Onshore LP ("KMG") holds valid and subsisting oil and gas lease rights in the captioned property. KMG's rights may be adversely affected by the Site Specific Development Plan and Use by Special Review Permit being proposed by Union Pacific Railroad Company. KMG is submitting this comment and objection timely, in accordance with State of Colorado and the Weld County's procedural requirements. KMG's recorded oil and gas leases are real property interests entitling it to produce oil and gas from the leased lands. The company has the right to produce from existing wells, to maintain, rework, recomplete, and fracture those existing wells to enhance production, and to drill new wells to produce oil and gas, in accordance with applicable Colorado Oil and Gas Conservation Commission regulations and Colorado Statutes. KMG's oil and gas assets have significant value, and the company is consequently concerned about any development, surface use, plan of use, PUD, zoning or rezoning, or other action by the County that would impair or preclude its ability to develop its property. KMG's preferred practice is to meet with surface owners and attempt to conclude a mutually acceptable surface use agreement. It is essential that such an agreement be in LC gl3 S/t/S�5 44/S/1-&5 2007-1160 Weld County Department of Planning April 12, 2007 Page 2 place before the County approves the developer's application. However, as of this date, KMG and Union Pacific Railroad Company have not concluded such an agreement. KMG must object to any approval by the County of Union Pacific Railroad Company's plans that fail to fully accommodate KMG's right to explore for, develop and produce oil and gas from its leasehold interests. KMG requests that the County withhold final plat approval until such time as the surface owner and KMG have concluded a surface use agreement. Any future surface development plans should incorporate and designate lands to be set aside for mineral development and expressly provide protection for KMG's current and future well, pipelines, gathering lines and related oil and gas facilities and equipment. Weld County has a constitutional obligation to ensure that the property rights of mineral interest owners are accommodated in its land use planning process. Approval of any surface development plan that forecloses the rights of mineral owners may be a compensable taking. Please contact me at 720-264-6772 if you have any questions or comments about this matter. KMG hopes to conclude a mutually acceptable surface use agreement with the surface owner of the property and looks forward to working with the County to accomplish its land use planning goals. Very truly yours, KERR-McGEE OIL & GAS ONSHORE LP 4,4444.2,0+44._ Daniel Casper Senior Staff Landman cc: Union Pacific Railroad Company c/o Tony Love and Gregg Larsen —Applicant (by U.S. Mail) Joseph H. Lorenzo—Kerr-McGee Oil & Gas Onshore LP Kevin Osif—Kerr-McGee Gathering LLC Hello