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Home My WebLink About20070597.tiff RESOLUTION RE: APPROVE LETTER OF AGREEMENT TO TEMPORARILY CLOSE A PORTION OF THE POUDRE RIVER TRAIL AND AUTHORIZE CHAIR TO SIGN 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,the Board has been presented with a Letter of Agreement to Temporarily Close a Portion of the Poudre River Trail among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, Petro-Canada Resources (USA) Inc., and Poudre River Trail Corridor, Inc.,commencing upon full execution,with terms and conditions being as stated in said letter of agreement, and WHEREAS,after review,the Board deems it advisable to approve said letter of agreement, a copy of which is attached hereto and incorporated herein by reference. NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County,Colorado,that the Letter of Agreement to Temporarily Close a Portion of the Poudre River Trail among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, Petro-Canada Resources (USA) Inc., and Poudre River Trail Corridor, Inc., be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is,authorized to sign said letter of agreement. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 7th day of March, A.D., 2007. BO D OF COUNTY COMMISSIONERS W D COUNTY, CO ORAPO S ATTEST: / //\ / - / , l � c n•• \?avid E. Long, Chair Weld County Clerk to the ?ear _; ''',4 -) / /'L, ) (--- yo�� J illiam. . r - em BY: .�,DepuClerk to the Boar. �- • : -,'' Willi F. Garcia APPROVED FOCI . ,\\\ 9 Robert D. Masde� Attorney .- - Y .<,----- LP S_ °7 Douglas ademache Date of signature: 2007-0597 N 'co,Fw66- S)C,-)y�ht� ay o -o) FPI Pt7ROCANADA Petro-Canada Resources(USA)Inc. February 27,2007 Mr.Scott Rudd,Trail Manager Poudre River Trail Corridor,Inc. 1100 10th Street,Suite 415 Greeley,Colorado 80631 Re: Agreement to Temporarily Close Trail Poudre Valley Trail Section 34,T6N-R67W Kodak 34-41,Kodak 34-44,and Kodak 34-45 wells Weld County,Colorado Dear Mr.Rudd: When executed by Petro-Canada Resources(USA)Inc.("PCR"),Board of County Commissioners Weld County,Colorado,and Poudre River Trail Corridor,Inc.,(collectively"Poudre River")this letter agreement("Agreement")will evidence such parties'agreement to the terms and conditions herein relating to the temporary closure of the Poudre River Trail("Trail")for the drilling of the Kodak 34-41,Kodak 34-44 and Kodak 34-45 wells("Kodak Wells"). Reference is made to that certain Letter Agreement dated February 8,2007,("February 8th Agreement")by and between PCR and Poudre River in which it was agreed to temporarily close the Trail in order for PCR to drill the Christiansen 35-41 and Christiansen 35.45 Wells("Christiansen Wells"). Such February 81°Agreement provided for the Trail to be closed for 22-days for the drilling of the Christiansen Wells. PCR has recently determined that the drilling of the Kodak Wells may immediately follow the drilling of the Christiansen 35-45 Well as discussed in the February 8th Agreement. PCR plans to drill the Kodak Wells at the locations depicted on Exhibit"A"hereto. COGCC Rule No.603(a)1, requires a minimum 150 foot setback of the well or 1.5 times the height of the derrick to be utilized to drill the Wells,whichever is the greater,from the northern edge of the Trail. In order to accommodate this requirement, it is necessary to close the Trail during drilling operations of the Kodak Wells. For the sum of$15,000($5,000 per well)and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,Poudre River hereby agrees to close the Trail for 6 days per well or a total of 18 days("Closure Period")during the drilling operations of the Kodak Wells. The Closure Period for the Kodak Wells will begin upon the completion of the Christiansen 35-45 well. If additional Closure Period is required for drilling the Kodak Wells,PCR agrees to pay Poudre River $500 per day("Penalty Period")for the additional closure,however,in the event that PCR drills the Christiansen Wells in less than the 22 days provided for in the February 8th Agreement,then any of the 22 days not used("Unused Days")will be added on to the Closure Period for the drilling of the Kodak Wells, such that the Penalty Period will not become applicable for the Kodak Wells until the expiration of the 18 day Closure Period plus any Unused Days,if any. If by reason of the activities of PCR,including,but not limited to,drilling,completing, equipping and operating of the Kodak Wells,there is unanticipated damage to the Trail,PCR will repair the Trail after consultation with and to the reasonable satisfaction of Poudre River. Such repairs performed by PCR or contractors will be properly signed and fenced for safety from damage by livestock,trail users,etc. PCR warrants any concrete work for a period of one(1)year. Poudre River will notify PCR of any items Suite 400,1099 18th Street • Denver,CO 80202-1904 Office:(303)297-2300 • Fax(303)297-7708 • www.petro-canada.ca 2007-0597 Page 2 February 27,2007 damaged after the Kodak Wells' construction and PCR will repair the Trail after consultation with Poudre River within 15 days of occurrence. PCR hereby agrees to indemnify against liability and to save harmless Poudre River from any liability or damages Poudre River may suffer as a direct result of claims,demands, costs,or judgments instituted by PCR, its agents,employees, invitees,or any person claiming through them,against Poudre River arising directly out of PCR's, its agents' or employees' negligent operation or use of the Trail,or arising directly from any accident, injury or damage, however caused, including the acts and omissions of third parties,to any person or persons,or to the property of any person,or corporation occurring during the term of this Agreement in relation to the aforementioned Trail closure for PCR's drilling purposes. PCR further agrees to defend Poudre River,by counsel reasonably satisfactory to Poudre River, against all claims and demands directly arising out of Poudre River's coordination and supervision of the Trail Closure for PCR's drilling operations and PCR's agents or employees, no matter whether such claims are made informally, in arbitration or mediation proceedings,or in court proceedings. PCR will provide Poudre River with a minimum of 7 days prior notice before closing the Trail, in order to allow adequate time for press releases and signage. In addition, PCR shall install a temporary fence and signage around the perimeter of the respective setback in the area of the Trail easement, and shall notify Poudre River 48 hours prior to the Trail closure and 24 hours prior to any Trail re-opening. PCR shall not commence drilling operations April ls'to October 31'' without written consent from Poudre Trail.This agreement will be null and void if PCR has not commenced actual drilling operations for the Kodak Wells by March 31,2009. Sincerer Beau Fritz Landman AGREED TO AND ACCEPTED THIS 7thDAY OF March ,2007. POUDRE RIVER TRAIL CORRIDOR,INC. By: ��//�i'f Title: (`v fr ATTEST: /jJG�// MELD COUNTY CLERK TOTH:t? BOARD OF COUNTY COMMISSIONERS 4.1 - WELD COUNTY,COLORADO BY: DEATTrESTIyRCby6v- Aff�F 7 By: c Long, COMMISSIONER SIGNATURES 0 Title:David . Chair, Bo rd of Weld County Commissioners MAR n 7 ?oo7 2 ,fo7-CS9 EXHIBIT "A" ::::, -,-4::,i-iiii . :, fr,,, ti, pill.1:::,;:c.::;1.1,it]:,:::...,,,:1, .. : , , ,., ,, , ,_::::::,.,11_,Itlit.laILI:l.c.L3_1,:bl,101,.7!71.17.1!:.:177:17.tc:::21;:i.tilli a �.� 45 56 - 32 S IIIIFR tz i `°. 'z•a a t �.4 r ₹y 1;a, a 1 # 'v / xk "w '^i` �}}g. Kodak 34-41. .44'.....1:,..,",.t +{ tt�w4 Kod`ak34 4g „ ittil,;.,..;"4: , ,,,,:iF ;,::: J-w>^I. ei ,,,,::::::::;,..,..7., ��. Kodak3444. .strvet.:-‘4,4',:se3/4",,,. ._ ;.sc,"a,> X7 v 1.;) .:„, ;;I:1 l r i 2 AO c q`.4y" .'"a a �k^c'':47.. 'tYf`4:7 �' ,4-44::r4414:ry��.✓ Li` r5, fM1..e' r';" ,+ : ?:2-.. d ryMp# 3� rte ^s ? S y_ uIt 7.444',-, s„F .1' ,r x 4 a 7C171- :MO ii,i r ` °t {.,.s ✓'z u�F. T' ,.'"--'d ... tdd `.�" -�k "�„t" �..r .,..- •36'� ba,:1516 3 Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Page 1 of 2 Esther Gesick From: Bruce Barker Sent: Friday, March 02, 2007 3:57 PM To: Jennifer Luna; Esther Gesick Subject: FW: CORRECTION: Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Attachments: Poudre River Trail Agreement Kodak directional wells 3-1-07.pdf; Amendment to Feb 8 letter agreement 3-1-07.pdf Please place on agenda for Wednesday. Thanks! Bruce. From: Scott Rudd [mailto:Scott.Rudd@Greeleygov.com] Sent: Friday, March 02, 2007 1:48 PM To: Don Feldhaus; Mike Ketterling; Phil Neville; Tim Thissen; Fred Otis; Tom Jones; Pete Barden; Mike Phillips; William Garcia; Bruce Barker Cc: Melissa Chew; Becky Safarik; Karen Scopel; Wade Willis; Vicky Sprague Subject: CORRECTION: Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Please discard the previous attachment dated 2-26-07 and replace it with this agreement dated 3-1-07—My apologies. Language pertaining to liability was added to this draft. Scott From: Scott Rudd Sent: Friday, March 02, 2007 1:32 PM To: Don Feldhaus; Mike Ketterling; Phil Neville; Tim Thissen; Fred Otis; Tom Jones; Pete Barden; Mike Phillips; 'wgarcia@co.weld.co.us'; Bruce Barker Cc: 'Melissa Chew'; Becky Safarik; Karen Scopel; Wade Willis; 'Vicky Sprague' Subject: FW: Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Board: Please read this email and the attached agreement, and cast your vote regarding passage of this agreement. As you know, A Petro Canada rep attended a trail board meeting last month to discuss one well on the Kodak property that will require a closure of the trail—this well was scheduled to be drilled in 2008. As you also know, we have an agreement with Petro Canada to Close the trail for 22 days to drill 2 wells on the Broe Property in exchange for$5k per well. (Drilling started Wed. Feb. 21st and is scheduled to be completed next week.) Because the current drilling schedule on the Broe property is moving faster than expected, Petro Canada would like to drill the Kodak wells next week, instead of in 2008. They are also planning to use a taller drilling rig than originally planned, meaning ALL 3 Kodak wells will require a trail closure. Therefore they are requesting that we grant them a trail closure on the Kodak property for 18 days starting next week. This will allow them to move the drilling equipment directly from the current Broe drilling site to the Kodak site. They are offering $15,000 ($5k/well). I recommend we sign the agreement for the following reasons* 1. The trail is already closed —an extension of that closure will be more efficient and less confusing than re- opening and closing again. 3/2/2007 Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Page 2 of 2 2. A closure during the time Petro is proposing will have less impact on our trail users due to current snow conditions and large pools of water on the trail. Use will remain very low until the snow and ice melts. 3. Fundraising is currently a high priority. This agreement will get us 3%closer to our$500k fundraising goal. 4. They will drill these wells with or without our permission, at some point in time. We cannot stop them. Please cast your vote via email and let me know if you have any questions. Scott From: Fritz, Beau [mailto:Beau.Fritz@petro-canada.com] Sent: Tuesday, February 27, 2007 7:39 AM To: Scott Rudd Subject: Agreement to Temporarily Close Trail (Kodak 34-41, Kodak 34-44, Kodak 34-45) Scott: Pursuant to our telephone conversation, attached please find the captioned agreement for your review. Please note we have changed the closure penalty to $500 dollars and changed the term to 6 days per well (18 days total). If this agreement is acceptable to Poudre River Trail and the Board of County Commissioners please sign and return one fully executed copy to Petro-Canada Resources. Thank you for your timely attention to this matter. If you have any questions, please call me directly at(303)350- 1220. Thanks, «Poudre River Trail Agreement Kodak Wells 2-26-07.pdf>> Beau Fritz Landman Petro-Canada Resources(USA) Inc. 1099 18th Street, Suite 400 Denver, CO 80202 (303) 350-1220- Phone (303)297-7708- Fax Beau.Fritz@petro-canada.com This email communication is intended as a private communication for the sole use of the primary addressee and those individuals listed for copies in the original message. The information contained in this email is private and confidential and If you are not an intended recipient you are hereby notified that copying, forwarding or other dissemination or distribution of this communication by any means is prohibited. 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