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HomeMy WebLinkAbout20061066.tiff RESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - NOBLE ENERGY PRODUCTION, INC. 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,Noble Energy Production, Inc., 1625 Broadway,Suite 2000,Denver,Colorado 80202, has requested that the bidding procedure be waived according to the policy as set forth in the Weld CountyAdministrative Manual for parcels less than five acres,on the following described mineral acres: Part of the E1/2 SE1/4 of Section 12, Township 6 North, Range 64 West of the 6th P.M.,Weld County, Colorado, including all that part laying north of and above the North Side Extension Ditch WHEREAS,Noble Energy Production, Inc.,is offering to lease the above described mineral acres, containing 3.0 mineral acres, more or less, and WHEREAS,the Board finds that the lease offer from Noble Energy Production, Inc., in the amount of Three Hundred Dollars($300.00), is acceptable, with the further terms and conditions being as stated in said Oil and Gas Lease, a copy being attached hereto and incorporated herein by reference. NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County,Colorado,that the request of Noble Energy Production, Inc.,to waive the bidding procedure on an Oil and Gas Lease concerning the above described mineral acres,be,and hereby is,granted. BE IT FURTHER RESOLVED by the Board that the offer of Noble Energy Production, Inc., to lease mineral acres, as hereinabove stated, be, and hereby is, accepted. 2006-1066 LE0174 0, % (4 A/esec.e /pa{_ ay—a27—aim WAIVE BID PROCEDURE - NOBLE ENERGY PRODUCTION, INC. PAGE 2 The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 12th day of April, A.D., 2006. BOARD OF COUNTY COMMISSIONERS WEL COLORADO ATTEST: e4L Weld County Clerk to giEm is,,,=' David . Long, Pro-Tem C7<< Deputy Clerk to the -rak V `\ - - Will H. Jerke APPR AS .• 'Qkj\-D__ Robert D. Masden t Attorney EXCUSED Glenn Vaad Date of signature: /)9-/a-OOtt, 2006-1066 LE0174 541 WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT,made and entered into this day of ,20_,by and between WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the Board of County Commissioners of the County of Weld, 915 10th Street, P.O. Box 758, Greeley, CO 80632, hereinafter called Lessor, and: NOBLE ENERGY PRODUCTION, INC. D tEtEl AcxEsicxgy, 1625 Broadway, Suite 2000, Denver, Colorado 80202 hereinafter called Lessee. WITNESSETH, that Lessor,for and in consideration of the sum of$ 300.00 , cash in hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining,exploring by geophysical and other methods,and operating for and producing therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as follows, to wit: Section 12 Township 6 North, Range 64 West of the 6th P.M., Weld County, Colorado: All that part of the E1/2SE1/4 laying North of and above the North Side Extension Ditch. and containing 3.0 acres, more or less. 1. It is agreed that the lease shall remain in force for a term of three(3)years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith,or drilling operations are continued as hereinafter provided. If,at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and operations shall be considered to be continuously prosecuted if not more than ninety(90)days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith,the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor one- eighth (1/8) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and saved from the leased premises. 11111 11111 11111 1111111111 111111 111111 III 11111 1111 IIII 3381547 04/24/2006 01:14P Weld County, CO M:\CTB\CTBFORMS\Fooilgas.wpd 1 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder (Revised 11/2000) Oil and Gas Lease - Small Tract Page 2 4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of this lease. 5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described lands, then the royalties(including any shut-in gas royalty)herein provided for shall be paid to the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate. 6. Lessee shall have the right to use, free of cost or royalty,gas, oil and water produced on said land for Lessee's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without the written consent of Lessor. 9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures placed on said premises, including the right to draw and remove casing. 10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in ownership of Lessor's interest(by assignment or otherwise)shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner. 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or separately for the production or either,when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to unitize, pool or combine all or any part of the above described lands as to one or more AMU MMUUU 1111111111 11111 MI MI III 11111 IIII �II� M:ICTBICTBFORMS\Fooilgas.wpd 3381547 04/24/2006 01:14P Weld County, CO (Revised 11/2000) 2 of 4 R 0.00 D 0.00 Steve Moreno Clerk& Recorder Oil and Gas Lease - Small Tract Page 3 of the formations thereunder 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 or 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 be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated 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. 12. 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. 13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury,including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or regulation. 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail,to the post office address of said lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying the same, stating that if within thirty(30) days from the date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such failure or default is not corrected with thirty(30)days after the mailing of such notice, and if Lessee does not request a hearing on such notice within thirty (30) days, this lease will terminate and be canceled by operation of the paragraph without further action by Lessor, or further notice to Lessee. 16. All of the provisions of this lease shall be binding upon the heirs, personal representatives, successors and assigns of Lessor and Lessee. 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor. 1111111 11111 11111 11111 11111 111111 111111 111 11111 1111 IIII 3381547 04/24/2006 01:14P Weld County, CO M:\CTB\CTBFORMS\Fooilgas.wpd 3 of 4 R 0.00 0 0.00 Steve Moreno Clerk& Recorder (Revised 11/2000) Oil and Gas Lease - Small Tract Page 4 IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. BOARD OF COU COMMISSIONERS WELD ELD COON , COLORADO ATTEST: gigu ps{..„ M. J. Geile ¢TiafiF,$'rd of County Commissioners Weld County Clerk to the Board 04/12/2006 By: ILt I atttC ,t v D ty Cle t to the Board Imo= E lle, LESSEE: imi �1 :z �" NOBLE ERGY PRO ION, INC. ojii ` ` r Neu N S/ D id W. Si e, Attorney-In-Fact /11/.�/ STATE OF COLORADO ) City and ) ss COUNTY OF Wan DENVER ) 10.6 The foregoing instrument was acknowledged before me this / 7 day of marcicucluglc January 20 Wfr r by David W. Siple, Attorney-In-Fact for Noble Energy Production, Inc. Witness my hand and official seal. Pfivt Notary Publi KATHRYN P f u �:� M My Commission Expires: �NOTPG r Pt Iht STATE OF COLORADO MY CO i'MiSSIOa` E XPiRES 2!‘,:y1 111111 IIIU In 1111111111111111111111 11111 It IIII 3381547 04/24/2006 01:14P Weld County, CO 4 of 4 R 0.00 0 0.00 Steve Moreno Clerk& Recorder M:1CTBICTB FORMS1Fooi Igas.wpd (Revised 11/2000) ,wcc /Ce6 1625 Broadway �^ noble Suite 2000 .i Denver,Colorado 80202 energy Tel:303.389.3600 Fax:303.389.3680 noble energy production,inc. - .. a subsidiary of noble energy,inc. October 11, 2005 Weld County Attn: Carol Harding Clerk to the Board's Office P.O. Box 758 Greeley, CO 80632 RE: Oil and Gas Lease Application Township 6 North, Range 64 West, 6th P.M. Section 12: Part of E/2SE/4 Weld County, CO Dear Ms. Harding: Noble Energy Production, Inc. would like to obtain an Oil and Gas Lease from Weld County on the following described lands: Township 6 North, Range 64 West, 6th P.M. Section 12: All that part of the E/2SE/4 lying North of and above The North Side Extension Ditch. Containing 3.00 acres, more or less Please send your Oil and Gas Lease application form to my attention at the letterhead address. Thank you for your attention to this request. Very truly yours, NOBLE ENERGY PRODUCTION, INC. Debra A. Wittke Landman 1625 Broadway noble Suite 2000 119, Denver,Colorado 80202 energy Tel: 303.389.3600 Fax: 303.228.4280 noble energy production,inc. a subsidiary of noble energy,inc. March 2, 2006 Clerk to the Board of Weld County Attn: Carol A. Harding P.O. Box 758 Greeley, CO 80632 RE: Small Tract Lease Offer Township 6 North, Range 64 West 6`b P.M. Section 12: Part of the E/2SE/4 Weld County, CO Dear Ms. Harding: Enclosed are two (2) originally executed Weld County Oil and Gas Lease (Small Tract) applications which have been executed on behalf of Noble Energy Production, Inc. • Noble offers $300.00 consideration for the 3.0 acre tract described as: All that part of the , E/2SE/4 laying North of and above the North Side Extension Ditch in Section 12, . • Township 6 North, Range 64 West. Please place this lease on the Board's agenda for consideration. Thank you for your attention to this lease offer. If you have any questions please call me at 303-228-4067. Very truly yours, NOBLE ENERGY PRODUCTION, INC. Debra A. Wittke • Landman Enclosure CLERK TO THE BOARD PHONE (970) 336-7215, Ext.4225 FAX: (970) 352-0242 P. O. BOX 758 O GREELEY, COLORADO 80632 • COLORADO October 12, 2005 Debra Wittke Noble Energy 1625 Broadway, Suite 2000 Denver, Colorado 80202 RE: Small Tract Lease Application Dear Ms. Wittke: Enclosed is a Small Tract Oil and Gas Lease form used by Weld County for those acreages less than 5.0 acres. The date will be filled in upon acceptance by the Board of County Commissioners. If you agree with the terms of the contract, please fill in the amount offered in the appropriate place and have the proper individual sign the contract (with notarization). When you return it to me, I will place it on the Board's regular agenda for consideration. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4217. Very truly yours, / If Carol A. Harding Office Manager Coordinator Enclosure 1,. V.- /17 1625 Broadway tl�� noble Suite 2000 9, energy l/ Denver,Colorado 80202 Tel:303.389.3600 Fax: 303.228.4280 noble energy production,inc. a subsidiary of noble energy,int. April 5, 2006 Clerk to the Board of Weld County Attn: Carol A. Harding P.O. Box 758 Greeley, CO 80632 RE: Small Tract Lease Offer Township 6 North,Range 64 West, 6`' P.M. Section 12: Part of the E/2SE/4 Weld County, CO • Dear Ms. Harding: On March 2, 2006,Noble Energy Production, Inc. ("Noble") sent two (2) originally executed Weld County Oil and Gas Lease(Small Tract) applications with an offer of $300.00 consideration for the 3.0 acre tract in Section 12, Township 6 North, Range 64 West. Noble is now sending a check in the amount of$300.00 with the request that this lease offer be placed on the Board's agenda for consideration. Thank you for your attention to this lease offer. If you have any questions please call me at 303-228-4067. Very truly yours, NOBLE ENERGY PRODUCTION, INC. /0-elqAt Debra A. 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