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HomeMy WebLinkAbout20063253.tiff Weld County Planning Department SOUTHWEST BUILDING OCT 1 6 2006 4'! KerrlVtGee RECEIVED Kerr-McGee Oil&Gas OnShore LP 1999 Broadway,Suite 3700,Denver,Colorado 80202 303-296-3600•Fax 303-296-3601 October 13, 2006 VIA FACSIMILEAND U.S. MAIL Weld County Department of Planning Attn: Kim Ogle-Planner 4209 County Road 24.5 Longmont, Colorado 80504 Re: Newby Farms Property-Notification of Surface Development Newby Farms, L.L.C. c/o Village Homes of Colorado, Inc. - Applicant Township 3 North, Range 68 West of the 6th P.M. Section 33: SE/4 & SW/4 Weld County, Colorado Dear Mr. Ogle: 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 Notice of Surface Development being proposed by Newby Farms, L.L.C. ICMG is submitting this comment and objection timely, in accordance with State of Colorado and 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 Weld 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 place before the Weld County approves the developer's application. However, as of this date, KMG and Newby Farms, L.L.C. have not concluded such an agreement. KMG must object to any approval by Weld County of Newby Farms, L.L.C.'s plans that fail to fully accommodate KMG's right to explore for, develop and produce oil and gas from its E CHUNT 2006-3253 1 +4- A Weld County Department of Planning October 13, 2006 Page 2 leasehold interests. KMG requests that the Weld 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 720-264-2642 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 Weld County to accomplish its land use planning goals. Very truly yours, KERR-McGEE OIL & GAS ONSHORE LP ohn Landman cc: Newby Farms, L.L.C c/o Village Homes of Colorado, Inc. —Applicant (by facsimile and U.S. mail) Joseph H. Lorenzo—Kerr-McGee Oil & Gas Onshore LP Joseph Sanchez—Kerr-McGee Gathering LLC Hello