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HomeMy WebLinkAbout830020.tiff ARy935612 AR.&943173 RESOLUTION RE : GRANT REQUEST OF BELLWETHER EXPLORATION COMPANY TO WAIVE BIDDING PROCEDURE AND ACCEPT OIL AND GAS LEASE PROPOSAL a WHEREAS, the Board of County Commissioners of Weld County, , M o Colorado, pursuant to Colorado statute and the Weld County Home NJ 1 Rule Charter, is vested with the authority of administering the w C) affairs of Weld County, Colorado, and z zW WHEREAS, Bellwether Exploration Company, through their rep- hi CO H C: N resentative D. L. Percell, Suite 201, 3615 S. Tamarac Street, En C) Denver, Colorado 80237, has requested that the bidding procedure HO Z CO be waived concerning an Oil and Gas Lease on property being more n co t+ w particularly described as follows: 7C H TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE SIXTH PRINCIPAL MERIDIAN _� Section 6 : Right of Way as described in Deed p Book 1063, Page 42, of the Weld d County, Colorado Records over and L� across E/2 SW/4 and containing ° o 2 .50 acres, more or less (2 . 50 * o net mineral acres) . o WHEREAS, the Board of County Commissioners, after review, o found that Bellwether Exploration Company did show good cause n o o u, for waiving the bidding procedure on the above described property and, therefore, the Board desires to accept the offer submitted by Bellwether Exploration Company, and WHEREAS, a copy of said Oil and Gas Lease is attached hereto and incorporated herein by reference, and WHEREAS, the Board deems it advisable and in the best in- terests of Weld County to grant the request of Bellwether Explor- atipn Company. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the request of Bellwether Exploration Company to waive the bidding procedure on the herein- above described property be, and hereby is, granted. BE IT FURTHER RESOLVED by the Board that the lease offer sub- mitted by Bellwether Exploration Company with one-sixth royalties be, and hereby is, accepted. B 1010 REC 01943173 10/11/83 14 : 21 $0. 00 1/005 F 0194 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO _ yJ�/� y RECORDER'S MEMORANDUM 830020 4 Q // TIME RECORDATION, STRUMENT WAS FOUND TO BE INADEQUATE FOR THE BEST PHOTOGRAPHIC REPRODUCTION , J �J O ,l BECAUSE OF ILLEGIBILITY, CARBON OR PHOTO - - ..- COPY, DISCOLORED PAPER, ETC. Page 2 ,� to RE: WAIVE BIDDING PROCEDURE - BELLWETHER EXPLORATION COMPANY oo wo CO The above and foregoing Resolution was, on motion duly made J tTi and seconded, adopted by the following vote on the 22nd day of K 0 August, A.D. , 1983. Zw `� � BOARD OF COUNTY COMMISSIONERS M m 7fl £ATTEST: ' -et,t "" fr " WELD COUNTY, COLORADO C N to �/� mo Weld County Clerk and Recorder �_ lZ. 1/40 and Clerk to the Board Chuck Carlson, Chairman H zo no w D putt' County Clerk J n T. Martin, Pro-Tem Imo / ray Q, .. APPROVED AS TO FORM: (V 63-03-At J ene R. Brantner 0 o 4,/ gkunty Attor ey Norman Carlson too V � cque ne J son DAY FILE: September 7 , 1983 B 1010 REC 01943173 10/11/83 14 : 21 $0. 00 2/005 F 0195 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO WELD COUNTY. COLORADO OIL AND CAS LEASE THIS AGREEMENT made this 2Znray of August 1983, between Weld County, Colorado, a political subdivision of the State of Colorado, by the Board of County Commissioners, for its respective interests, Ce0 Board of County Commis- sieners., Weld County Centennial Center 915 10th Street, Greeley, Colorado 80631 , Lessor (whether one or more), and f3ELLhrzll ER EXPLORATION COMPANY, Denver, Colo. Lessee, WITNESSETH: 1620 Welton, Suite 300 80202 1. lessor in consideration of One hundred forty—three & 90/100 Dollars ($ 143.90 ). In hand paid, of the royalties herein provided, and of the agreement of Lessee herein cnntained, hereby grants, leases and lets exclusively unto Lessee for the purpose of investigating, exploring,, prospecting, drilling and mining for and producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other • structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees, • (subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights therein being situated in the County of Weld, State of Colorado, and described as follows: TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE SIXTH PRINCIPAL MERIDIAN Section 6: Right of Way as described in Deed Book 1063, Page 42, of the Weld County, Colorado Records over and across E/2 SW/4 and containing 2. 50 acres, more or less (2.50 net mineral acres). three (3) 2. Subject to the other provisions herein contained, this lease shall be for a term of / years from this date (called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder, or drilling or reworking operations are conducted thereon, one-sixth (1/6) 3. The royalties to be paid by Lessee are: (a) on oil, XelliM gleteilof that produced and saved from said land, the same to be delivered at the'wells, or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in Its possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub- stance, produced from said land and sold or used off th e,pr m''ie`e�e.{e�oe. in a manufacture of gasoline or other products therefrom, the market value le, 1 frq o$�'HJA 'df'th€ @S-'4o t.svl& r used, provided that on gas sold at the wells the royalty shall be �di' tbtaMdunt realized from such sale; on sufur the royalty shall be fifty cents (50�) per long ton. Lessees ii 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 any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or any assignee may thereafter. in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well, and, if such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall contLwe in effect for successive periods of twelve (12) months each. 4. If iterations for drilling are not commenced on said land as hereinafter provided, on or before one year from this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall nay or tender to Lessor, and shall continue as the depository fur all rentals payable hereunder regardless of changes n ownership of said land nr the rentals either by convevance or by the death or incapacity of Lessor, the sum of Two dollars & 50/100 Dollar(s) ($ 1.00 e per net mineral acre, (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay- ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or releases. '` 5. Should any well drilled on the above described land during the primary term before production is obtained be 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 chit 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 discovery of 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 expirrti•od of the primary term, Lessee is conducting operations for drilling a new ',dell or reworking an old well, this leo.a reaerfhele>ssnall continue in force as long a; such drilling or reworking operations continue, or if, after the ec c lain of the primary term, prnduc:ion on this lease shall cease, tnis 'ease revertneless ;hill continue in force if drilling or reworking operations are conmenced within sixty (d,^,) 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 ooera ti ons, conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil, 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 tor 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 (10t) 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 authorities having jurisdiction. Lessee may pool or com- bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more strata, and units so formed need not conform in size or area with the unit or units into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in B 1007 REC 01939812 09/08/83 15 : 57 $0. 00 3/005 F 0364 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO B 1010 REC 01943173 10/11/83 14: 21 $0 . 00 3/005 F 0196 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO • one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ- ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil 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 on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease. In lieu of the royalties elsewhere herein specified, Lessor shall receive from a unit so formed, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears 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 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 so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed 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 filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of termination. 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands 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 of 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 he paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is al- located 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. 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 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 or gas 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 dabs nut 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, than, and in that event, the royalties and rentals to be paid Lessor shall be reduced proportionately. B 1010 REC 01943173 10/11/83 14: 21 $0. 00 4/005 F 0197 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 12. Nat-witnstanaing in a provision-of this tease 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. B 1007 REC 01939812 09/08/83 15 : 57 $0. 00 F 0365 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO/,°g0 • 1S. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether it is signed by any of the other parties. IN WITNESS WHEREOF, this instrument is executed on the date first above written. OF COUNTY C'• , SSIONERS Y. CA 1/47Y0-u Wwit. i ki ATTEST: Weld County Clerk and Rtwr k to the Board `. �,,,�• By: 'q} t*STK T t,; , LESSEE: SELL !ER EXPLORATION COMPANY, `• ► aa Sec ry By: .Z '.-. aJSS • Quoriut�Aub►wy, Pros dnnC 1gUNiY'1SF WELD' • The foregoing-Instrument was acknowledged before me this day of 19 ,, by iy, coawission explwes: • Witness my hand and official seal. i ;' Rotary Public • B 1007 REC 01939812 09/08/83 15 : 57 $0.00 5/005 F 0366 NARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO B 1010 REC 01943173 10/11/83 14: 21 $0. 00 5/005 F 0198 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO • • i . ... . . c-cc r4"1, / 7cf D. L. PERCELL Suite 201 —3615 S.Tamarac Street Denver, Colorado 80237 Telephone 303-773-8171 —303-773-8173 PETROLEUM LAND SERVICE August 10, 1983. OIL & GAS PROPERTIES BOARD OF COUNTY COMMISSIONERS, WELD COUNTY, COLORADO, 915 Tenth Street, Greeley, Colorado 80631. Re: Oil and Gas Lease, Pts. Secs. 6, 26, 33 and 34, Township 6 North, Range 66 West, WELD COUNTY, COLORADO. Dear Sirs: The undersigned, as representative for Bellwether Exploration Company, respect- fully requests your consideration of granting an Oil and Gas Lease covering your mineral interests under the following tracts of land, to-wit: TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE SIXTH P.M. , WELD COUNTY, COLORADO Section 6: Right of way as described in Deed Book 1063, Page 42, of the Weld County Records over and across E/2 SW/4, containing 2.5 acres, more or less; Section 26: Right of way as described in Deed Book 1063, page 43, of the Weld County Records over and across W/2 NW/4, containing 2.5 acres, more or less; Section 33:,;'L A tract of land beginning SO feet East of the Northwest corner of NE/4 NE/4; thence East SO feet; thence South to the right of way of C $ S RR Co. ; thence North 74° along right of way to point due South of place of beginning; thence North to point of beginning, and containing 0.5 acres, more or less; ALSO a tract in NW/4 NE/4 beginning 1672.6 feet West of the Northeast A. corner; thence South 16°, West 105 feet to North line of C FT S RR Right of way; thence North 74°'along right of way 63 feet; thence North 16°, East 87 feet to North line of Section 33; thence East 65.5 feet to point of beginning, containing 0.5 acres, more or less; cu ALSO a tract of land in NE/4 NE/4, beginning on North line of Section 33, 100 feet East of the Northwest corner of NE/4 NE/4; thence East 75 feet; thence South 166 feet to C S RR right of way; thence Northwesterly along right of way to a point 100 feet East of West line of NE/4 NE/4; thence North to the point of beginning, con- taining 0.5 acres, more or less; ALSO a tract in NW/4 NE/4 beginning 100 feet West of the Northeast corner of NW/4 NE/4; thence West 81 feet; thence South 16 feet; thence West 152.20 feet to C $ S RR right of way; thence Southeasterly along right of way to a point 100 feet West of the East boundary line of NW/4 NE/4; thence North to the point of beginning, containing 1.0 acres, more or less; k ALSO a tract in S/2 SE/4 lying and being in the Southwest corner of S/2 SE/4 containing 1.43 acres, more or less; Section 34: 4.10 acres in S/2 SW/4 SW/4 as same is recorded in Book 163, page 486, Deed Records of Weld County, Colorado. continued. Board of County Commissioners, August 10, 1983, page no. 2. Therefore, the total acreage for which we are requesting an Oil and Gas Lease is 13.03 acres and Bellwether Exploration would be willing to pay a bonus consider- ation in the amount of $750.00, with said lease providing for 1/6th royalties and being for a primary term of three (3) years. We further request that the bidding procedure be waived insofar as we feel in view of Bellwether's extensive leasehold coverage within these areas, they would quite possibly be the only party interested in obtaining such a lease due to the small acreage contents thereof. We further request that you schedule this request for your August 22, 1983, hearing and would appreciate confirmation of this date. Your early consideration and advisement will he greatly appreciated.. Yours very truly, C' D. L. Percell. cc: Bob Richardson, Bellwether Exploration Company. D. L. PERCELL Suite 201 —3615 S.Tamarac Street Denver, Colorado 80237 Telephone 303-773-8171 —303-773-8173 PETROLEUM LAND SERVICE August 29, 1983. OIL & GAS PROPERTIES BOARD OF COUNTY COMMISSIONERS, WELD COUNTY, COLORADO, 915 Tenth Street, Greeley, Colorado 80631. Re: Oil and Gas Leases, Pts. Secs. 6, 26, 33 and 34, Township 6 North, Range 66 West, Weld County, Colorado, BELLWETHER EXPLORATION COMPANY. Dear Sirs: Herewith please find the following, to-wit: 1. Original and one copy of Oil and Gas Lease covering Pt.Section 6-6N-66W, by and between Weld County, Colorado, Lessor, and Bellwether Exploration Company, Lessee; 2. Original and one copy of Oil and Gas Lease covering Pt. Section 26-6N-66W, by and between Weld County, Colorado, Lessor, and Bellwether Exploration Company, Lessee; 3. Original and one copy of Oil and Gas Lease covering Pts. Section 33-6N-66W, by and between Weld County, Colorado, Lessor and Bellwether Exploration Company, Lessee; 4. Original and one copy of Oil and Gas Lease covering Pt. Section 34-6N-66W, by and between Weld County, Colorado, Lessor, and Bellwether Exploration Company, Lessee. This transmittal is in accordance with your instructions and the resolution of the Board of County Commissioners and the check in payment of the total $750.00 bonus consideration has previously been furnished you. We respectfully request the execution of the enclosed and return of the recorded instruments direct to the undersigned at your earliest convenience. Yours very truly, D. L. Percell. enc. (8) . cc: Bellwether Exploration Company. D. L. PERCELL Suite 201 —3615 S. Tamarac Street Denver, Colorado 80237 Telephone 303-773-8171 —303-773-8173 PETROLEUM LAND SERVICE August 24, 1983. OIL & GAS PROPERTIES BOARD OF COUNTY COMMISSIONERS, WELD COUNTY, COLORADO, 915 Tenth Street, Greeley, Colorado 80631. Re: Oil and Gas Lease, Pts. Secs. 6, 26, 33 and 34, Township 6 North, Range 66 West, Weld County, Colorado, BELLWETHER EXPLORATION COMPANY. Dear Sirs: In accordance with your Hearing of August 22, 1983, wherein you did approve the undersigned's request to waive the bidding procedure for an Oil and Gas Lease covering the captioned, I have formally prepared and transmit herewith original and one copy of Oil and Gas Lease covering the captioned, together with check in the amount of $750.00 representing bonus consideration therefor. I respectfully request your approval of granting the enclosed Lease be considered at your August 29, 1983, hearing and that upon such approval that the original lease be properly executed by Weld County, recorded and returned direct to the undersigned. Your fine cooperation in this matter is greatly appreciated. Yours very truly, t D. L. Percell. enc. (3) . Hello