HomeMy WebLinkAbout20060260.tiff WOODROW & SOBEL, P.C.
ATTORNEYS AT LAW 1660 Wynkoop Street, Suite 1100
Denver, Colorado 80202
Telephone: 303-296-1400
Molly Sommerville Facsimile: 303-296-1924
msommerville@woodrow-sobel.com E-mail: law@ woodrow-sobel.com •
December 28, 2005
Via Telefax and Federal Express
[1-970-304-6498]
Sheri Lockman, Planner
Weld County Department of Planning Services
918 Tenth Street
Greeley, Colorado 80631
Re: Sonja Stonestreet (Sonja Rose/Craighead)
Case Number PZ-1095
Township 8 North, Range 67 West
Section 31: S/2SE/4; NE/4SE/4
Weld County, Colorado
Dear Sheri:
This law firm represents Anadarko Land Corp. ("Anadarko Land"), formerly known as
Union Pacific Land Resources Corporation, and Anadarko E&P Company LP ("Anadarko
E&P"), formerly known as Union Pacific Resources Company, with respect to the application
that has been filed with Weld County by Sonja Stonestreet for the approval of a PUD sketch plan
for the property referenced above ("Property").
Anadarko Land and Anadarko E&P together own all of the minerals that underlie the
Property. Enclosed is a letter to the members of the Planning Commission and the Board of
County Commissioners for Weld County entitled "Notice of Oil and Gas Interests Owned by
Anadarko Land Corp. and Anadarko E&P Company LP and Objection" which I ask that you
provide to the Planning Commission and the Board to be included in the record of the
proceedings to be held on the application.
As you are aware, C.R.S. § 24-65.5-101 et. seq. requires that developers give notice to
mineral interest owners of hearings on applications for development and certify to the local
jurisdiction that notice was given. Local governments are to require the certification as a
condition for the approval of the application.
EXHIBIT
2006-0260
Sheri Lockman
December 28, 2005
Page 2
Notices of hearings should be provided by the County to the Anadarko entities pursaunt
to C.R.S. § 24-6-402(7) as follows:
Anadarko E&P Company LP
Post Office Box 9149
Houston, Texas 77387-9147
Attention: Land Manager Western Division/CBM
Anadarko Land Corp.
Post Office Box 9149
Houston, Texas 77387-9147
Attention: Manager, Property and Rights-of-Way
As always, thank you for your consideration and attention to this matter.
Very truly yours,
WOODROW& SOBEL, P.C.
72'112--
Molly Sommerville
MS/sa
Enclosure
cc: Tom Marranzino
Dan Casper
Don Ballard
Marla Jones, Esq.
Jim Martell, Esq. / for Sonja Stonestreet
WOODROW 8c SOBEL, P.C.
ATTORNEYS AT LAW 1660 Wynkoop Street, Suite 1100
Denver,Colorado 80202
Telephone: 303-296-1400
Facsimile: 303-296-1924
Molly Sommerville,Esq.
E-mail: law @woodrow-sobel.com
msommerville@woodrow-sobel.com
December 28, 2005
Via Telefax and Federal Express
Members of the Planning Commission of Weld County
918 Tenth Street
Greeley, Colorado 80631
Members of the Board of County Commissioners
of Weld County
915 Tenth Street
Greeley, Colorado 80631
NOTICE OF OIL AND GAS INTERESTS OWNED BY
ANADARKO LAND CORP. AND ANADARKO E&P COMPANY LP
AND OBJECTION
Re: Sonja Stonestreet (Sonja Rose/Craighead)
Case Number PZ-1095
Township 8 North, Range 67 West
Section 31: S/2SE/4; NE/4SE/4
Weld County, Colorado
Ladies and Gentlemen:
This law firm represents Anadarko Land Corp. ("Anadarko Land"), formerly known as
Union Pacific Land Resources Corporation, and Anadarko E&P Company LP ("Anadarko
E&P"), formerly known as Union Pacific Resources Company, with respect to the application
that has been filed with Weld County ("County") by Sonja Stonestreet for a PUD sketch plan for
property that consists of the S/2SE/4 and the NE/4SE/4 of Section 31, Township 8 North, Range
67 West in Weld County ("Property"). The Anadarko entities own all of the minerals that
underlie the Property.
Anadarko Land and Anadarko E&P together own the oil and gas that underlies the
Property, and Anadarko Land owns the minerals other than the oil and gas, including the coal,
that underlies the Property.
Members of the Planning Commission of Weld County
Members of the Board of County Commissioners of Weld County
December 28, 2005
Page 2
Anadarko Land and Anadarko E&P wish to give notice to the County of the oil and gas
interests they own under the Property and object to the approval by the County of a final
development application for the Property unless and until agreements on surface use for the oil
and gas interests are reached between the Anadarko entities and the Applicant. Anadarko Land
does not object to the application because of the hard rock mineral interests that it owns under
the Property.
The following are comments in support of this Notice and Objection:
1. The Oil and Gas Resources Owned by the Anadarko Entities.
The Anadarko entities together own all of the oil and gas that underlies the Property.
Current Colorado Oil and Gas Conservation Commission rules and regulations provide for the
location of four wellsites in a quarter section where the Property is located, one in the center of
each of the quarter quarter sections.
.r-
2. There Is Clear Statutory Authority and Direction for the County to Take into Account the
Rights of Mineral Interest Owners in Its Consideration of Applications for Development.
The State of Colorado recognizes the important rights of mineral owners and lessees in
C.R.S. § 30-28-133(10) which states and acknowledges that both the mineral estate and the
surface estate are interests in land and that the two interests are "separate and distinct." The
subsection specifically recognizes that the owners of subsurface mineral interests and their
lessees have "the same rights and privileges as surface owners."
Further, C.R.S. § 24-65.5-101, et. seq. requires that applicants for development approvals
give notice to mineral estate owners of hearings to be held before local jurisdictions for
applications for development and further requires that the developer certify that he has given the
required notice as a condition to the approval of the application by the local jurisdiction.
3. Government Action Which Allows Surface Development in a Manner Which
Precludes Mineral Development May Impair the Vested Property and Contractual
Rights of the Mineral Interest Owner.
Colorado case law provides that the mineral owner has the right of reasonable access to
and use of the surface estate to extract minerals and that the surface owner and mineral owner
must exercise their rights in a manner consistent with one another.' Actions by a government
'See Frankfort Oil Company v. Abrams,413 P.2d 190(Colo. 1966)and Gerrity Oil&Gas Corporation v.
Magness, 946 P.2d 913 (Colo. 1977).
Members of the Planning Commission of Weld County
Members of the Board of County Commissioners of Weld County
December 28, 2005
Page 3
entity which may have the effect of reversing this basic tenet of Colorado property law and
thereby deprive the mineral interest owner of its vested property and contractual rights may
violate federal and state constitutional provisions.
Union Pacific Railroad Company gave a deed to Burton S. Sanborn dated March 29,
1906 and recorded April 9, 1906 in Book 233, Page 24, in which the Railroad reserved the
minerals for the Property. The Railroad granted the minerals to Union Pacific Land Resources
Corporation by quitclaim deed dated April 1, 1971 and recorded April 14, 1971 in Book 644,
Reception number 1565712. Applicant had record notice at the time she acquired her interests in
the Property that the minerals were severed from the surface estate and that she received less
than the entire interest in the Property.
4. An Action by the County to Approve the Application May Amount to a
Regulatory Taking within the Meaning of the State and United States
Constitutions.
Action by the County to approve an application for surface development may constitute a
regulatory taking, especially where the operator is deprived of all economically viable use of
land or his investment-backed expectations to develop his property.2
The United States Claims Court and the Federal Circuit Courts have awarded
compensation or affirmed decisions to award compensation to energy and mining companies
based upon claims by the companies that their mineral properties had been taken by the
government without just compensation because of government regulations which disallowed the
development by the companies of their mineral rights.3
5. The Anadarko Entities Have Entered into Many Agreements with Developers
With Respect to the Disposition of the Minerals at the Time that the Developer
Proposes to Develop the Surface Estate, and the Public Interest is Served by the
Parties Entering into Such an Agreement.
The Anadarko entities have extensive mineral interests throughout Colorado where the
surface estate and the mineral estate have been severed. The Anadarko entities have worked
2See for example, Lucas v. South Carolina Coastal Council, 505 U.S. 1003, 112 S.Ct. 2886, 120 L.Ed. 2d
798 (1992).
.-� 'See for example Whitney Benefits, Inc. v. United States, 18 CI.Ct. 394(1989), corrected, 20 CI.Ct. 324
(1990),affd., 926 F.2d 1169(Fed.Cir.), cert. denied, 112 S.Ct.406(1991); United Nuclear Corporation v. United
States, 17 CI.Ct. 768, affd., 912 F.2d 1432 (1990).
Members of the Planning Commission of Weld County
Members of the Board of County Commissioners of Weld County
December 28, 2005
Page 4
with many parties who wish to develop the surface estate in order to assure the compatible
development of the surface and the minerals or to effect some other disposition of the minerals.
In that regard, the Anadarko entities have reached an agreement in principle with Ms. Stonestreet
concerning a surface use agreement for the oil and gas interests that the Anadarko entities own
for the Property; however, final agreements have not been executed to date.
The Anadarko entities anticipate that agreements will be finalized; however, in the
meantime, they object to the Application in order to preserve their rights under Colorado statutes
and request that the County make any approval of a final application for development for the
Property conditioned upon an agreement between the Applicant and the .Anadarko entities.
Very truly yours,
WOODROW & SOBEL, P.C.
z�-
Molly Sommerville
MS/sa
cc: Marla Jones, Esq.
Don Ballard
Tom Marranzino
Dan Casper
Jim Martell, Esq. / for Sonja Stonestreet
Page 1 of 1
James A. Martell
From: Molly Sommerville [msommerville@woodrow-sobel.com]
Sent: Wednesday, December 28, 2005 1:11 PM
To: jamartell@lileyrogersmartell.com
Subject: Sonja Craig/Stonestreet documents
Jim,
Attached are what I hope are the final versions of both the surface use agreement and the agreement for hard
rock minerals(with attachments)for the mineral interests that the Anadarko entities own for property in Weld
County described as a portion of the SE/4 of Section 31,Township 8 North, Range 67 West which Sonja
Craighead/Stonestreet proposes to develop and which is included in an application for development scheduled to
be heard before the Planning Commission in Weld County on January 3.
Please confirm that I have attached the correct and complete legal descriptions for the property, including the
property in both the NE/4SE/4 and the S/2SE/4, and calculated the correct number of acres. I calculate the total
acreage to be 104.2 acres.
I have attached the plat for SW/4SE/4 as exhibit 2 to the surface use agreement; however, you should also show
the access route and pipeline easement on the plat. I would also like a second plat to attach to the surface use
agreement that shows the SW/4SE/4 within the overall property similar to the document you faxed me described
as "Proposed Recorded Exemption;" however, it should also show the oil and gas operations area in the
SW/4SE/4 and also the access route and pipeline easement.
Also, please confirm that you want to use the name Sonja Craighead and not Sonja Stonestreet.
Because the hearing is scheduled on January 3 in Weld County, I plan to file an objection to the application, but
let the County know that we have an agreement in principle. When the documents are signed by Ms.Craighead, I
will withdraw the objection.
Please call me with questions.
Molly
Molly Sommerville
Woodrow& Sobel, P.C.
1660 Wynkoop Street, Suite 1100
Denver, Colorado 80202
303-296-1400,phone
303-296-1924,fax
e-mail: msommerville(a>woodrow-sobel.com
The information contained in this e-mail message is privileged, confidential and protected from
disclosure. If you have received this e-mail in error, please advise me of the misdirected e-mail by
sending me a message at msommerville@woodrow-sobel.com. In addition, please delete this e-mail from
your system.
EXHIBIT
I
1/2/2006
Draft dated December 28,2005
SURFACE USE AGREEMENT
THIS SURFACE USE AGREEMENT ("Agreement") is effective this day of
, 2006, by and among ANADARKO E&P COMPANY LP ("Anadarko
E&P"), formerly known as Union Pacific Resources Company, ANADARKO LAND CORP.
("Anadarko Land"), formerly known as Union Pacific Land Resources Corporation (together
the "Anadarko Entities"), both with an address of Post Office Box 1330, Houston, Texas
77251-1330 and Sonja Craighead, an individual ("Surface Owner"), with an address of 5429
East County Road 58, Fort Collins, Colorado 80524.
A. Surface Owner owns the surface estate for approximately 110 acres of property
located in Weld County, Colorado, in the S/2SE/4 and the NE/4SE/4 of Section 31, Township
8 North, Range 67 West, which is more specifically described in the attached Exhibit 1 and
referred to hereinafter as the "Property."
B. The Anadarko Entities together own all of the oil, gas and associated liquid
hydrocarbons that underlie the Property, and Anadarko Land owns the minerals exclusive of
oil, gas and associated liquid hydrocarbons.
C. Current Colorado Oil and Gas Conservation Commission rules and regulations
allow the owners and/or lessees of the oil and gas for the Property to locate oil and/or gas
wells in four drilling windows in a quarter section, one in approximately the center of each
quarter quarter section.
D. The parties enter into this Agreement to provide for the coexistence and joint
development of the surface estate and the oil and gas estate for the Property and to delineate
the process with which they shall comply with respect to the development of the two estates.
E. This Agreement is limited to the compatible development of the surface estate
and the oil and gas estate for the Property; it does not in any respect apply to the minerals
other than the oil, gas and associated liquid hydrocarbons owned by Anadarko Land in the
Property which is the subject of a separate agreement between Anadarko Land and Surface
Owner.
NOW THEREFORE, in consideration of the covenants and mutual promises set forth
in this Agreement, including in the recitals, the parties agree as follows:
1. Oil and Gas Operations Area.
a. The Anadarko Entities agree that they shall drill and/or operate oil and/or gas
wells only within the one location identified on Exhibit 2, which is generally in the center
drilling window in SW/4SE/4 and which is hereinafter referred to as the "Oil and Gas
Operations Area." Operations and uses within the Oil and Gas Operations Area include, but
are not limited to, drilling, completion, and maintenance of wells and equipment, production
operations, workovers, well recompletions and deepenings, fracturing, twinning, and drilling
of replacement wells and the location of associated oil and gas production and drilling
equipment and facilities.
b. The Oil and Gas Operations Area shall include the area which is generally in
the shape of a circle with a radius of 250 feet as reflected on Exhibit 2.
c. The Anadarko Entities shall continue to have the right to drill more than one
well with attendant facilities within the Oil and Gas Operations Area and to deepen,
recomplete or twin any well that is drilled or has been drilled, as well as to drill directional
and horizontal wells that produce from and drain the Property or lands other than the
Property.
d. Surface Owner shall not plat any surface property line within the Oil and Gas
Operations Area, and no temporary or permanent building or other structure or improvement
shall be located by Surface Owner within the Oil and Gas Operations Area. The Oil and Gas
Operations Area shall be for the exclusive use of oil and gas operations and production and
for the location of oil and gas wells and associated oil field drilling and production equipment;
provided that, the Anadarko entities understand that the Oil and Gas Operations Area is
designated as open space within the subdivision.
e. The Anadarko Entities shall also have the right to locate, build, repair and
maintain tanks, separators, dehydrators, compressors and all other associated oil and gas
drilling and production equipment and facilities within the Oil and Gas Operations Area.
2. Access to the Oil and Gas Operations Area.
a. Access to the Oil and Gas Operations Area shall be at the location identified on
Exhibit 2.
b. Access may be changed by mutual agreement of Surface Owner and the
appropriate oil and gas interest owners; provided however, all costs and expenses of such
relocations shall be borne by the party which requests them.
c. No party shall unreasonably interfere with the use by the other of an access
road.
d. Surface Owner shall keep the portions of access roads jointly used by both
Surface Owner and the Anadarko Entities in good condition and repair until such roads are
dedicated to a local jurisdiction; provided, however, if one of the Anadarko Entities causes
damage to a portion of a road that is jointly used by both the Anadarko Entities and Surface
Owner and which is constructed to the specifications in section 2.e.(1), the Anadarko Entities
agree to promptly repair any damage which they cause which is a direct result of their use of
the road.
2
e. Construction and Width of Access Roads.
(1) Access roads or portions of access roads that are jointly used by the
Anadarko Entities and Surface Owner shall be thirty (30) feet wide, or the width required by
the County, whichever is greater, and Surface Owner shall construct or improve all paved or
improved joint access roads so as to withstand the weight of oilfield equipment. Specifically,
Surface Owner shall construct the roads so that they can be used to withstand the weight of
104,000 pounds and 26,000 pounds per axle.
(2) Access roads or portions of access roads that are used exclusively by
the Anadarko Entities shall be generally thirty (30) feet in width, and the Anadarko Entities
shall install and maintain such roads or portions of roads to those state and local standards that
apply to oil and gas operations.
3. Pipelines, Flowlines and Pipeline Easements.
a. Flowlines and pipeline easements shall be at the locations identified on Exhibit
2.
b. Locations of pipelines, flowlines and such easements may be changed by
mutual agreement of Surface Owner and the appropriate oil and gas interest owners; provided,
however, all costs and expenses of such relocations shall be borne by the party which requests
the relocation. In the event that Surface Owner requests the relocation of a pipeline or
swat
flowline, the applicable oil company shall provide Surface Owner with a written estimate of
the relocation costs which Surface Owner shall thereafter promptly remit to the oil company.
The payment shall be adjusted up or down upon completion of the work and after an itemized
statement is provided to Surface Owner.
c. Pipeline easements shall be fifty (50) feet in width during construction
activities and thirty (30) feet in width for all operations, maintenance and transportation
activities. Flowline easements shall be thirty (30) feet in width for all operations.
d. Pipeline and flowline easements shall be for the exclusive use of oil and gas
production operations; provided, however, the easements may be shared by the oil companies
and their lessees, assignees of lessees and successors and assigns.
e. Surface Owner shall be entitled to reserve the right to cross the pipeline
easements at approximately right angles, and Surface Owner shall also have the right to install
and maintain easements that are adjacent to, but not within, the easements identified herein,
for utility lines, including those for water, gas, sewer, electric, telephone, cable, television,
and fiber optic and other pipelines; provided, however; i) any new underground facilities
which travel along a pipeline easement identified herein shall be located a distance
horizontally of at least ten (10) feet from parallel existing pipelines; ii) any new underground
facilities shall have at least twenty-four (24) inches of vertical clearance between such new
3
facility and a pipeline provided for herein; and iii) any overhead power lines shall be at least
twenty (20) feet above the ground.
f Surface Owner shall grant the pipeline easements (for production from the
Property and/or other lands) to the Anadarko Entities at the time the Anadarko Entities
request them and at no cost to them.
4. Plats and Local Applications. Surface Owner shall identify the Oil and Gas
Operations Area and all access routes and pipeline easements on her plats and in all
applications for development she files with a local jurisdiction, and the plats shall include
restrictions that no property line or temporary or permanent building, structure or other
improvement related to the surface development shall be located, constructed or installed
within the Oil and Gas Operations Area. Surface Owner shall record the plats in the Office of
the Clerk and Recorder of Weld County and provide written evidence to the Anadarko
Entities of the recording.
5. Waiver of Surface Damage Payments. Surface Owner hereby waives all
surface damage payments or other such payments for the use of the Property or portions
thereof pursuant to any current or future COGCC or local regulation, state statute, common
law or prior agreement for each and every well and related wellsite that is or will be drilled
and located within the Oil and Gas Operations Area and for associated oil and gas equipment
and facilities, flowlines, access and pipeline easements. The Anadarko Entities or their lessees
or their assignees may provide a copy of this Agreement to the COGCC or any local
jurisdiction, person or entity or court of law as evidence of this waiver.
6. Waiver of Setback Requirements. Surface Owner understands and
acknowledges that the COGCC has rules and regulations that apply to the distance between a
wellhead and public roads, production facilities, building units and surface property lines,
among other things. Surface Owner hereby waives all setback requirements in COGCC Rule
603, or any successor rule or amendment to the COGCC setback rules, and to any other state
or local setback requirements that are or become inconsistent with this Agreement or that
would prohibit or interfere with the rights of the Anadarko Entities to explore for and produce
the oil and gas in accordance with this Agreement. Surface Owner understands that the
Anadarko Entities may cite the waiver in this section 6 in order to obtain a location exception
or variance under COGCC rules or from a local jurisdiction.
7. Governmental Proceedings.
a. Surface Owner Will Not Object. Surface Owner agrees that she will not object
in any forum to the use by the Anadarko Entities of the surface of the Property consistent with
this Agreement and hereby waives any such right to object. Surface Owner further agrees that
she will provide such other written approvals and waivers which are requested by an oil
company and consistent with this Agreement, including, but not limited to, all approvals and
waivers to drill a well or to conduct oil and gas operations on the Property because of any law
or regulation, including any local ordinance and regulations of the COGCC, and including, for
4
example, waivers to state and local setback requirements and to any setback requirements
from a surface property line or for an exception location.
b. Oil Companies Will Not Object. The Anadarko Entities agree that they will
not object in any forum to a request by Surface Owner to annex, zone, rezone, plat or replat
all or any portion of the Property to extent such request is consistent with this Agreement.
8. Notices of Hearings. Surface Owner shall provide the Anadarko Entities with
written notice not less than thirty (30) days before each hearing for consideration of a plat
application or other land use application for the Property or portions of the Property to be held
before a local jurisdiction.
9. Notice to Homeowners and Builders. Surface Owner shall furnish all builders
and developers which purchase all or any portion of the Property and each person or entity
who proposes to enter into a contract to purchase a lot which is adjacent to, or any part of
which is within, 350 feet from the Oil and Gas Operations Area or a flowline or pipeline
easement, with a plat that shows the locations of the Oil and Gas Operations Area and the
flowlines and pipeline easements. In addition, Surface Owner shall provide written notice to
all such purchasers that includes the following:
i. they are not purchasing and will not own any rights in the oil, gas and
mineral estate in and to the Property;
ii. there may be ongoing oil and gas operations and production on the
surface of the Property within the Oil and Gas Operations Area, pipelines and flowline
easements and access routes;
iii. there are likely to be wells drilled and additional oil and gas production
facilities constructed and installed within the Oil and Gas Operations Area and
additional flowlines and pipelines constructed and maintained on the Property;
iv. heavy equipment will be used by the Anadarko Entities from time to time
for oil and gas drilling and production operations and such operations may be
conducted on a 24-hour basis; and
v. homeowner associations and buyers of individual lots or homes will be
subject to and burdened by all of the covenants and waivers made by Surface Owner
in this Agreement, including, but not limited to those covenants and waivers; a)
prohibiting the location of any temporary or permanent building, structure, or other
improvement within the Oil and Gas Operation Area; b) waiving objections to the
drilling of wells, the construction of facilities, and the conduct of oil and gas
operations on the Property consistent with this Agreement; c) waiving surface damage
payments; and d) waiving objections to the setback requirements under the rules of the
COGCC or any local jurisdiction.
5
10. Notice of Oil and Gas Operations. The Anadarko Entities shall provide
Surface Owner with notice of drilling operations and subsequent well operations in
accordance with COGCC rules and regulations.
11. Impact Mitigation. Surface Owner shall bear all costs to install such noise and
visual impact mitigation measures she desires or the local jurisdiction requires at or around
the Oil and Gas Operations Area which are in excess of or in addition to those measures
which are required by COGCC regulations for areas which are not high density; provided,
however, the operator of the well within the Oil and Gas Operations Area shall have
reasonable discretion to veto or protest the types and locations of impact mitigation measures
in order to allow for safe oil and gas operations.
12. Individual Liability of Oil Companies. Nothing in this Agreement is intended
to create a cause of action by any oil company against any other oil company or to enlarge or
diminish any right or interest created by any agreement or lease or assignment of lease
between or among any oil company. Nothing in this Agreement creates any leasehold rights
or gives any mineral rights to an oil company where none exists. The liability of the Anadarko
Entities and any other oil company to perform any obligation hereunder or to comply with any
agreement included herein or with any state or local rule or regulation is individual and
several and not joint or collective. This Agreement does not create a joint venture or
partnership between or among any of the oil companies. The Anadarko entities shall in no
event be liable for the acts or omissions of their lessees or farmoutees or the assignees or
contractors or subcontractors of any of them.
13. Authority to Execute Agreement. Each party represents that he/she/it has the
full right and authority to enter into this Agreement with respect to the surface rights or the oil
and gas interests he/she/it owns in the Property, as applicable.
14. No Waiver of Rights. The Anadarko Entities do not waive the rights they have
pursuant to each of their respective oil and gas interests to explore for, drill and produce the
oil and gas for the Property or for ingress and egress to the Oil and Gas Operations Area,
except as specifically provided in this Agreement.
15. Successors and Assigns. This Agreement and all of the covenants in it shall be
binding upon the subsequent lessees and assignees of lessees and also the personal
representatives, heirs, successors and assigns of all of the parties, and the benefits of this
Agreement shall inure to all of them. This Agreement and all of the covenants in it shall be
covenants running with the land.
16. Recording. Surface Owner shall record this Agreement with the Clerk and
Recorder of Weld County and provide evidence to the Oil Companies of the recording.
17. Governing Law. The validity, interpretation and performance of this
Agreement shall be governed and construed in accordance with the laws of the State of
Colorado.
6
18. Severability. If any part of this Agreement is found to be in conflict with
applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such
laws; however, the remainder of this Agreement shall be in full force and effect. In the event
that any part of this Agreement would otherwise be unenforceable or in conflict with
applicable laws due to the term or period for which such part is in effect, the term or period
for which such part of this Agreement shall be in effect shall be limited to the longest period
allowable which does not cause such part to be unenforceable or in conflict with applicable
laws.
19. Notices. Any notice or communication required or permitted by this
Agreement shall be given in writing either by; i) personal delivery; ii) expedited delivery
service with proof of delivery; iii) United States mail, postage prepaid, and registered or
certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which
shall be acknowledged, addressed as follows:
Anadarko E&P Anadarko E&P Company LP
and Anadarko Land: c/o Anadarko Petroleum Corporation
Attention: Land Manager—Western Division/CBM
Post Office Box 9149
Houston, Texas 77380-9149
Surface Owner: Sonya Craighead
5429 East County Road 58
Fort Collins, Colorado 80524
Any party may, by written notice as provided in this section, change the address of the
individual to which delivery of notices shall be made thereafter.
20. Incorporation by Reference. Exhibits 1 and 2 are incorporated into this
Agreement by this reference.
21. Entire Agreement. This Agreement sets forth the entire understanding among
the parties and supersedes any previous communications, representations or agreements,
whether oral or written. No change of any of the terms or conditions herein shall be valid or
binding on any party unless in writing and signed by an authorized representative of each
party.
22. Counterpart Executions. This Agreement may be executed in counterparts,
each of which shall be deemed an original.
7
IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be
executed by a duly authorized representative on the dates set forth in the acknowledgments, to
he effective on the date first above written.
ANADARKO E&P COMPANY LP
By:
Name:
Its:
ANADARKO LAND CORP.
By:
Name:
Its:
Sonja Craighead, an individual
8
ACKNOWLEDGMENTS
STATE OF TEXAS )
) ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by , as
for ANADARKO E&P COMPANY LP.
Witness my hand and official seal.
My Commission expires:
Notary Public
STATE OF TEXAS )
ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by as
for ANADARKO LAND CORP.
Witness my hand and official seal.
My Commission expires:
Notary Public
9
STATE OF COLORADO
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this_ day of
2006, by Sonja Craighead, an individual.
Witness my hand and official seal.
My Commission expires:
Notary Public
10
EXHIBIT 1
to
Surface Use Agreement
effective , 2006
between and among Anadarko E&P Company LP, Anadarko Land Corp.,
and Sonja Craighead
Legal Description
LOT 1
A tract of land situate in the Southeast Quarter of Section 31, Township 8 North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' 00" W and with oil bearings contained herein relative thereto.
BEGINNING at the Southeast Corner of said Section 31; thence along the South line of
said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02'
11' 35" E 376.92 feet; thence 334.89 feet along o non—tangent curve, concave to the
Northwest having a radius of 1200.00 feet, a central angel of 15' 59' 23", and a
long—chord which bears N 42' 52' 14" E 333.80 feet; thence with c line non—tangent
to said curve N 90' 00' 00" E 230.27 feet to the East line of the Southeast Quarter
of said Section 31; thence along said line S 07 11' 35" W 621.74 feet to the POINT
OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a
30 foot wide county road right—of—way on the most Easterly and Southerly lines and
any easements, rights—of—way, or restrictions now in use or on record.
LOT 2-
A tract of land situate in the Southeast Quarter of Section 31, Township 8 North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' 00" W and with all bearings contained herein relative thereto.
COMMENCING at the Southeast Corner of said Section 31; thence along the South line
of said Southeast Quarter N 90' 00' 00" W 448.00 feet to the TRUE POINT OF
BEGINNING; thence continuing along sold line N 90' 00' 00" W 2047.98 feet to the
South Quarter Corner of said Section 31; thence departing said line and along the
North—South Centerline of sold Section 31 N 01' 31' 44" E 1322.12 feet to the
Center—South Sixteenth Corner; thence S 89° 52' 53" E 1255.56 feet to the Southeast
Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth
Corner; thence along the East—West Centerline of said Section 31 S 89' 45' 51" E
616.45 feet to the Southerly line of that tract of land conveyed in Book 1143. Page
388, at Reception No. 945957; thence along said Southerly line the following six
courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E
85.30 feet, S 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and S 79' 05'
25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31;
thence departing said Southerly line and along said East line S 02' 11' 35" W 1663.49
feet; thence departing said East line S 90' 00' 00" W 230.27 feet;"thence 334.89 feet
along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet,
a central angle of 15' 59' 23", and a long—chord which bears S 42' 52' 14" W 333.80
feet; thence with a line non—tangent to said curve S 02" 11' 35" W 376,92 feet to the
POINT OF BEGINNING, containing 104.6817 acres, more or less. Said tract being
sub ject to a 30 foot wide county road right—of—way on the most Easterly and
Southerly lines and any easements, rights—of—way, or restrictions now in use or on
record.
11
EXHIBIT 2
to
Surface Use Agreement
effective ,2006
between and among Anadarko E&P Company LP, Anadarko Land Corp.,
and Sonja Craighead
Oil and Gas Operations Area
EXHIBIT
Or paoroali OIL.a QAs opauncets AflA
IN.TNt AW}.OMTHE'.fti'OPSaC SOH-31.TV M.it 07.W
SW or mat its 4
SECTION a1..T H 87 W
{III
COOLIMMTION
-. "4
WELD COUNTY ROAD 86
DATE'07-25- 05
TITLE:EXHIBIT 'SCALE:1"=300.
BOOK:N/A DRAWN"RJL�
CLIENT:BARSTOW PROJECT:05-2418
RJL SURVEYS
e' 1.13 CAMERON DRIVE. SUITE B
80
FORT COLLINS. COLORADO 80525
12
December 28, 2005
AGREEMENT CONCERNING CERTAIN MINERAL RIGHTS
THIS AGREEMENT is effective this day of , 2006, by and
between ANADARKO LAND CORP., formerly known as Union Pacific Land Resources
Corporation ("Anadarko Land"), with an address for business of Post Office Box 1330, Houston,
Texas 77251-1330 and Sonja Craighead, an individual ("Surface Owner"), with an address of
5429 East County Road 58, Fort Collins, Colorado 80524 .
A. Surface Owner owns the surface estate for property located in Weld County,
Colorado, described as approximately 104.2 acres in the SE/4 of Section 31, Township 8 North,
Range 67 West, which Surface Owner proposes to develop and which is more specifically
described in the attached Exhibit 1 and referred to hereinafter as the "Property."
B. Anadarko Land owns all of the minerals exclusive of oil, gas and associated liquid
hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and
associated liquid hydrocarbons in the Property.
C. The mineral resources exclusive of oil, gas and associated liquid hydrocarbons
that underlie the Property are hereinafter referred to as the "Minerals."
D. This Agreement provides for the relinquishment by Anadarko Land to Surface
Owner of surface rights for the Minerals; it does not in any respect apply to the oil, gas and
associated liquid hydrocarbons for the Property that are owned by Anadarko Land and Anadarko
E&P Company LP, an affiliate of Anadarko Land, which are the subject of a surface use
agreement among the Anadarko entities and Surface Owner.
NOW THEREFORE, in consideration of the covenants and mutual promises set forth in
this Agreement, including in the recitals, the parties agree as follows:
1. Relinquishment and Quitclaim Document.
a. Anadarko Land agrees to provide Surface Owner with a relinquishment
document in which Anadarko Land relinquishes to Surface Owner the surface
rights for the Minerals, generally in the form attached to this Agreement as
Exhibit 2.
b. Surface Owner shall pay Anadarko Land the amount of$50 an acre for the
relinquishment document or the total amount of Five Thousand Two Hundred Ten
Dollars ($5210) for the 104.2 acres that comprise the Property.
c. Surface Owner shall make the payment to Anadarko Land, and Anadarko
Land shall provide the relinquishment document to Surface Owner, within thirty
(30) days from the date that a local jurisdiction approves a final plat for all or any
portion of the Property.
2. Default on Payment when Due.
If Surface Owner fails or refuses to make the payment described in section 1.b. within the
time provided in section 1.c., the amount due shall bear interest from the date of default at the
lesser rate of either twelve percent (12%) per annum or the maximum amount of non-usurious
interest. Anadarko Land shall be entitled to collect all reasonable costs and expenses of
collection and/or suit, including but not limited to, court costs and reasonable attorneys fees.
3. Recording of Memorandum of Agreement.
A memorandum of this Agreement shall be recorded with the Clerk and Recorder of
Weld County in the form attached to this Agreement as Exhibit 3.
4. Adjustment to Purchase Price.
The amount of the purchase price for the relinquishment document provided for in
section 1.b. shall increase each year from the date of this Agreement in accordance with the
Consumer Price Index so that the amount of the purchase price due after one year from the date
of this Agreement shall be the amount of the purchase price plus an amount of money which
reflects the sum of the percentage of increase in the Consumer Price Index to the date that
Surface Owner makes the payment.
5. Application and Term of Agreement.
This Agreement and the terms included in this Agreement are conditioned upon final plat
approval being given by a local jurisdiction for all or portions of the Property within three (3)
years from the date of this Agreement; provided, however, this Agreement and its terms shall
automatically apply to all of the Property when any portion of the Property is given final plat
approval.
6. Successors and Assigns.
This Agreement and all of the covenants in it shall be binding upon the personal
representatives, heirs, successors and assigns of the parties, and the benefits of this Agreement
shall inure to their personal representatives, heirs, successors and assigns. This Agreement and
all of the covenants in it shall be covenants running with the land.
7. Governing Law.
The validity, interpretation and performance of this Agreement shall be governed and
construed in accordance with the laws of the State of Colorado.
2
8. Severability.
If any part of this Agreement is found to be in conflict with applicable laws, such part
shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder
of this Agreement shall be in full force and effect. In the event that any part of this Agreement
would otherwise be unenforceable or in conflict with applicable laws due to the term or period
for which such part is in effect, the term or period for which such part of the Agreement shall be
in effect shall be limited to the longest period allowable which does not cause such part to he
unenforceable or in conflict with applicable laws.
9. Notices.
Surface Owner shall provide thirty (30) days advance written notice of all hearings in
local jurisdictions on applications for development as defined in C.R.S. §24-65.5-101 et. seq.
Notices or communications required or permitted by this Agreement shall be given in
writing either by; i) personal delivery; ii) expedited delivery service with proof of delivery; iii)
United States mail, postage prepaid, and registered or certified mail with return receipt
requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed
as follows:
To Anadarko Land: Anadarko Land Corp. c/o Anadarko Petroleum Corporation
Attn: Don Ballard
Post Office Box 1330
Houston, Texas 77251-1330
To Surface Owner: Sonja Craighead
5429 East County Road 58
Fort Collins, Colorado 80524
Notices shall be effective upon receipt and any party may change an address by notice to
the other parties.
10. Incorporation of Exhibits.
Exhibits 1, 2 and 3 are incorporated into this Agreement by this reference.
11. Counterpart Executions.
This Agreement may be executed in counterparts, each of which shall be deemed as
original.
3
12. Entire Agreement.
This Agreement sets forth the entire understanding among the parties and supercedes any
previous communications, representations or agreements, whether oral or written. No change of
any of the terms or conditions herein shall be valid or binding on any party unless in writing and
signed by an authorized representative of each party.
[N WITNESS WHEREOF, the undersigned parties have caused this Agreement to be
executed by a duly authorized representative on the dates set forth in the acknowledgements, to
be effective on the date first above written.
ANADARKO LAND CORP.
By:
Name:
Sonja Craighead, an individual Its:
4
ACKNOWLEDGMENTS
STATE OF TEXAS )
) ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by , as for
ANADARKO LAND CORP.
Witness my hand and official seal.
My Commission expires:
Notary Public
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _day of •
2006, by Sonja Craighead, an individual.
Witness my hand and official seal.
My Commission expires:
Notary Public
5
EXHIBIT 1
to
Agreement Concerning Certain Mineral Rights
effective , 2006
between Anadarko Land Corp. and Sonja Craighead
Legal Description
LOT 1.
A tract of land situate in the Southeast Quarter of Section 31. Township 8 North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' 00" W and with all bearings contained herein relative thereto.
BEGINNING at the Southeast Corner of said Section 31; thence along the South line of
said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02'
11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the
Northwest having a radius of 1200.00 feet, a central angel of 15' 59' 23", and a
long—chord which bears N 42' 52' 14" E 333.80 feet; thence with a line non—tangent
to said curve N 90' 00' 00" E 230.27 feet to the East line of the Southeast Quarter
of said Section 31; thence along said line S 02' 11' 35" W 621.74 feet to the POINT
OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a
30 foot wide county road right—of—way on the most Easterly and Southerly lines and
any easements, rights—of—way, or restrictions now in use or on record.
LOT 2-
A tract of land situate in the Southeast Quarter of Section 31, Township 8 -North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' OO" W and with oil bearings contained herein relative thereto.
COMMENCING at the Southeast Corner of said Section 31; thence along the South line
of said Southeast Quarter N 90' 00' 00" W 448.00 feet to the TRUE POINT OF
BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the
South Quarter Corner of said Section 31; thence deporting said line and along the
North—South Centerline of said Section 31 N 01' 31' 44" F_ 1322.12 feet to the
Center—South Sixteenth Corner; thence S 89' 52' 53" E 1255.56 feet to the Southeast
Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth
Corner; thence along the East—West Centerline of said Section 31 S 89' 45' 51" E
616.45 feet to the Southerly line of that tract of land conveyed in Book 1143, Page
388, of Reception No. 945957; thence ❑long said Southerly line the following six
courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, 5 65' 33' 25" E
85.30 feet, S 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and S 79' 05'
25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31;
thence departing said Southerly line and along said East line S 02' 11' 35" W 1663.49
feet; thence departing said East line S 90' 00' 00" W 230.27 feet;"thence 334.89 feet
along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet,
a central angle of 15' 59' 23". and a long—chord which bears S 42' 52' 14" W 333.80
feet; thence with a line non—tangent to said curve 5 02° 11' 35" W 376.92 feet to the
POINT OF BEGINNING, containing 104.6817 acres, more or less. Sold tract being
subject to a 30 foot wide county road right—of—way on the most Easterly and
Southerly lines and any easements, rights—of—way, or restrictions now in use or on
record.
6
EXHIBIT 2
to
Agreement Concerning Certain Mineral Rights
effective , 2006
between Anadarko Land Corp. and Sonja Craighead
RELINQUISHMENT AND QUITCLAIM
THIS RELINQUISHMENT AND QUITCLAIM is effective this day of
, 2006, by and between ANADARKO LAND CORP., formerly known as Union Pacific
Land Resources Corporation, with an address of Post Office Box 1330, Houston, Texas 77251-
1330 (hereinafter "Anadarko Land"), and Sonja Craighead, an individual, with an address of
5429 East County Road 58, Fort Collins, Colorado 80524 (hereinafter "GRANTEE").
WITNESSETH:
RECITALS
1. The lands which are the subject of this Relinquishment and Quitclaim are the lands that
are described on attached Exhibit A and are hereinafter referred to as the "Subject
Lands."
2. By deed dated March 29, 1906 recorded on April 9, 1906 in the Office of the Clerk and
Recorder of Weld County in Book 233, Page 24, Union Pacific Railroad Company
conveyed to Burton S. Sanborn certain real estate in Weld County, Colorado, a portion of
which are the Subject Lands. Said deed was made subject to the reservation by the
grantor of, among other things, "(a)11 coal and other minerals within or underlying said
lands."
3. By quitclaim deed dated April 1, 1971 recorded on April 14, 1971 in the Office of the
Clerk and Recorder of Weld County in Book 644, Reception No. 1565712, Union Pacific
Railroad Company quitclaimed to Union Pacific Land Resources Corporation, all of its
right, title, and interest in and to certain real estate in Weld County, Colorado, a portion
of which was the Subject Lands.
4. This Relinquishment and Quitclaim relates to surface entry only for the minerals excusive
of oil, gas and associated liquid hydrocarbons that Anadarko Land owns in the Subject
Lands. The minerals exclusive of oil, gas and associated liquid hydrocarbons are
hereinafter referred to as the "Minerals."
RELINQUISHMENT AND QUITCLAIM
NOW THEREFORE, Anadarko Land, for and in consideration of the sum of TEN
DOLLARS ($10.00) and other good and valuable consideration to it paid, the receipt of which is
hereby acknowledged, has RELINQUISHED and forever QUITCLAIMED, and by these
presents does RELINQUISH and forever QUITCLAIM unto GRANTEE, her grantees,
successors and assigns, with respect to the Subject Lands only, the right to enter upon the surface
of the Subject Lands to explore for and remove the Minerals by virtue of the reservation
contained in the deed described in Recital 2, it being the intent hereof to relinquish only the right
to enter upon the surface of the Subject Lands to explore for and remove the Minerals, and to
leave in full force and effect all other rights reserved to Union Pacific Railroad Company in that
deed, it being expressly understood that Anadarko Land's title to the Minerals shall be in no way
affected and that Anadarko Land and any lessee, licensee, successor or assign of Anadarko Land
shall have the right to remove the Minerals from the Subject Lands by subterranean entries, by
means of operations conducted on the surface of other lands or otherwise by any means or
methods suitable to Anadarko Land, its lessees, licensees, successors and assigns, but without
entering upon or using the surface of the Subject Lands, and in such manner as not to damage the
surface of the Subject Lands or to interfere with the use thereof by GRANTEE, her grantees,
successors and assigns.
This Relinquishment and Quitclaim is made subject to the specific understanding that all
of the terms, conditions, provisions and reservations contained in the deed dated March 29, 1906
referenced in Recital 2 and not heretofore relinquished shall continue in full force and effect with
respect to all lands conveyed thereby and not covered by this Relinquishment and Quitclaim, and
it is further specifically understood that all the terms, conditions, provisions and reservations
contained in that deed and not relinquished hereunder shall continue in full force and effect with
respect to the Subject Lands.
IN WITNESS WHEREOF, Anadarko Land has executed this Relinquishment and
Quitclaim on the date set forth in the acknowledgment, to be effective on the date first written
above.
ANADARKO LAND CORP.
By:
Name:
Its:
2
STATE OF TEXAS )
ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by , as for ANADARKO LAND
CORP.
My Commission expires:
Witness my hand and official seal.
Notary Public
3
EXHIBIT A
to
Relinquishment and Quitclaim
effective ,2006
between Anadarko Land Corp. and Sonja Craighead
Legal Description
LOT 1:
A tract of land situate in the Southeast Quarter of Section 31, Township 8 North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' 00" W and with all bearings contained herein relative thereto.
BEGINNING at the Southeast Corner of said Section 31; thence along the South line of
said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02'
11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the
Northwest having a radius of 1200.00 feet, a central angel of 15° 59' 23", and a
long—chord which bears N 42' 52' 14" E 333.80 feet; thence with a line non—tangent
to said curve N 90° 00' 00" E 230.27 feet to the East line of the Southeast Quarter
of said Section 31; thence along said line S Or 11' 35" W 621.74 feet to the POINT
OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a
30 foot wide county road right—of—way on the most Easterly and Southerly lines and
any easements, rights—of—way, or restrictions now in use or on record.
LQI_2;
A tract of land situate in the Southeast Quarter of Section 31, Township 8 North,
Range 67 West of the 6th P.M., Weld County, Colorado, described as follows:
Considering the South line of the Southeast Quarter of said Section 31 as bearing N
90' 00' 00" W and with all bearings contained herein relative thereto.
COMMENCING at the Southeast Corner of said Section 31; thence along the South line
of said Southeast Quarter N 90' 00' 00" W 448.00 feet to the TRUE POINT OF
BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the
South Quarter Corner of said Section 31; thence departing said line and along the
North—South Centerline of said Section 31 N 01' 31' 44" E 1322.12 feet to the
Center—South Sixteenth Corner; thence S 89° 52' 53" E 1255.56 feet to the Southeast
Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth
Corner; thence along the East—West Centerline of said Section 31 S 89' 45' 51" E
616.45 feet to the Southerly line of that tract of land conveyed in Book 1143, Page
388, ❑t Reception No. 945957; thence along said Southerly line the following six
courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E
85.30 feet, S 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and S 79° 05'
25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31;
thence departing said Southerly line and along said East line 5 02' 11' 35" W 1663.49
feet; thence departing said East line S 90' 00' 00" W 230.27 feet;'thence 334.89 feet
along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet,
a central angle of 15' 5W 23", and a long—chord which bears S 42° 52' 14" W 333.80
feet; thence with a line non—tangent to said curve S 02' 11' 35" W 376.92 feet to the
POINT OF BEGINNING, containing 104.6817 acres, more or less. Said tract being
subject to a 30 foot wide county road right—of—way on the most Easterly and
Southerly lines and any easements, rights—of—way, or restrictions now in use or on
record.
EXHIBIT 3
to
Agreement Concerning Certain Mineral Rights
effective , 2006
between Anadarko Land Corp. and Sonja Craighead
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT is effective this day of
2006, by and between ANADARKO LAND CORP., formerly known as Union
Pacific Land Resources Corporation ("Anadarko Land"), with an address for business of Post
Office Box 1330, Houston, Texas 77251-1330 and Sonja Craighead, an individual ("Surface
Owner"), with an address of 5429 East County Road 58, Fort Collins, Colorado 80524.
A. Surface Owner owns the surface estate for property located in Weld County,
Colorado, described as approximately 100 acres in the S/2SE/4 and the NE/4SE/4 of Section 31,
Township 8 North, Range 67 West, which Surface Owner proposes to develop and which is
more specifically described in the attached Exhibit A and referred to hereinafter as the
"Property."
B. Anadarko Land owns all of the minerals exclusive of oil, gas and associated liquid
hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and
associated liquid hydrocarbons for the Property.
C. The mineral resources exclusive of oil, gas and associated liquid hydrocarbons are
hereinafter referred to as the "Minerals."
D. Anadarko Land and Surface Owner have entered into an agreement that provides
for the sale by Anadarko Land to Surface Owner of certain surface rights associated with the
Minerals that is entitled "Agreement Concerning Certain Mineral Rights" ("Agreement").
E. The oil, gas and associated liquid hydrocarbons that underlie the Property are not
the subject of the Agreement; however, they are the subject of a surface use agreement among
Anadarko Land, Anadarko E&P Company LP (an affiliate of Anadarko Land) and Surface
Owner.
F. The parties desire, through the execution and recording of this Memorandum, to
reaffirm and give notice of the Agreement and the rights and interests created in the Agreement.
NOW, THEREFORE, in consideration of the covenants and mutual promises set forth in
the Agreement and this Memorandum of Agreement, including in the recitals, the parties agree
as follows:
1. Anadarko Land has granted to Surface Owner the right to purchase a
relinquishment document for the surface rights for the Minerals under the terms, provisions and
1
conditions set forth in the Agreement.
2. This Memorandum is not a complete summary of the Agreement and shall not be
used in interpreting the provisions of the Agreement, nor in any way or manner does it amend,
modify or affect the terms, provisions, conditions and exceptions of the Agreement, and the
Agreement shall govern and control in all respects, the duties, obligations, covenants, warranties
and agreements of the parties.
3. Exhibit A is incorporated into this Memorandum by this reference.
4. This Memorandum shall be recorded in the Office of the Clerk and Recorder of
Weld County.
5. This Memorandum may be executed in counterparts, each of which shall be
deemed an original.
IN WITNESS WHEREOF, the parties hereto have executed this instrument on the dates
set forth in the acknowledgements, to be effective on the date first above written.
ANADARKO LAND CORP.
By:
Sonja Craighead, an individual Name:
Its:
2
ACKNOWLEDGMENTS
STATE OF TEXAS )
) ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by as for ANADARKO LAND
CORP.
Witness my hand and official seal.
My Commission expires:
Notary Public
STATE OF COLORADO )
) ss.
COUNTY OF )
"1'he foregoing instrument was acknowledged before me this day of
2006, by Sonja Craighead, an individual.
Witness my hand and official seal.
My Commission expires:
Notary Public
3
ACKNOWLEDGMENTS
STATE OF TEXAS
ss.
COUNTY OF MONTGOMERY )
The foregoing instrument was acknowledged before me this day of
2006, by as for ANADARKO LAND
CORP.
Witness my hand and official seal.
My Commission expires:
Notary Public
STATE OF COLORADO
) ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2006, by Sonja Craighead, an individual.
Witness my hand and official seal.
My Commission expires:
Notary Public
3
Hello