HomeMy WebLinkAbout830021.tiff AR193981G
AR1943175
RESOLUTION
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RE : GRANT REQUEST OF BELLWETHER EXPLORATION COMPANY TO WAIVE O H
BIDDING PROCEDURE AND ACCEPT OIL AND GAS LEASE PROPOSAL
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WHEREAS, the Board of County Commissioners of Weld County,
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Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the z
affairs of Weld County, Colorado, and v
to
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WHEREAS, Bellwether Exploration Company, through their rep-
resentative D. L. Percell, Suite 201, 3615 S . Tamarac Street, to \
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Denver, Colorado 80237 , has requested that the bidding proceduren co
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be waived concerning an Oil and Gas Lease on property being more H
particularly described as follows: a, ..
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to
TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE SIXTH
C1
P.M. , WELD COUNTY, COLORADO O
d
Section 33: A tract of land beginning 50 feet to o
East of the Northwest corner of £ o
NE/4 NE/4; thence East 50 feet; r o
thence South to the right of way
of C & S RR Co. ; thence North 74°
along right of way to point due o
South of place of beginning; thence
North to point of beginning, and rn
0
containing 0 . 5 acres, more or less;
ALSO, a tract in NW/4 NE/4 begin-
ning 1672 . 6 feet West of the North-
east corner; thence South 16° , West
105 feet to North line of C & 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;
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 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 begin-
ning 100 feet West of the North-
east 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 be- 830021
ginning, containing 1. 0 acres,
more or less;
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Rk OC1Q F 0204 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Page 2 hi CO
RE: WAIVE BIDDING PROCEDURE - BELLWETHER EXPLORATION COMPANY o I--
(.0 0
in o
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ALSO, a tract in S/2 SE/4 lying
and being in the Southwest corner m n
of S/2 SE/4, containing 1. 43 acres, 'c
more or less . z E-
zw
WHEREAS , the Board of County Commissioners, after review, It m
ti7 H
found that Bellwether Exploration Company did show good cause m• o
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for waiving the bidding procedure on the above described property t
H O
OD
and, therefore, the Board desires to accept the offer submitted z
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by Bellwether Exploration Company, and m w
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N I-1
WHEREAS, a copy of said Oil and Gas Lease is attached hereto '
01
and incorporated herein by reference, and m °
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WHEREAS, the Board deems it advisable and in the best in- o
rain
terest of Weld County to grant the request of Bellwether Explor- z O
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ation Company. r o
0
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- n• N
`
missioners of Weld County, Colorado that the request of Bellwether no o
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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.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 22nd day of
August A.D. , 1983 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: " (OX C��r v-.` . ,:�: ti., WELD COUNTY, COLORADO
Weld County C"erk and Recorder
and Clerk to the Bo Chuck Carlson, Chairman
: (1.4C , , T. 2771n� ci
_1-Deputy County Clerk J T. Martin, Pro-Tem
APPRO D AS TO FORM: 0
4Gene R. Bran ner
]ttnimow- _- l./�-,N�19t._ _
County Attorney Norman Carlson
SJ soh son
DAY FILE: September 7, 1983
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F 0205 MARY ANN FEUERSTEIN CEERK & RECORDER WELD CO, CO
•
WELD COUNTY, COLORADO OIL AND CAS LEASE
THIS AGREEMENT made this 22nd day of August , ic83, between Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis-
sioners, Weld County Centennial Center 915 10th Street, Greeley, Colorado 80631 , Lessor (whether one or more), end
BELLWETHER EXPLORATION COi')PANt, Denver, Cob Lessee, WITNESSETH:
1630 Welton, Suite 300 80262
1. lessor in consideration of Two hundred twenty—six & 20/100 1 Dollars ($ 226.20 ' ).
in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, 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:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
FOR DESCRIPTION COVERED BY THIS WELD COUNTY COLORADO
OIL AND GAS LEASE
and containing 3.93 acres, more or less (3.93 i 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 ,VOICEttibtliof 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�ii ,,ppreg,mis {{,�ori,i a manufacture of gasoline or other products
therefrom, the market value ig j�of( x�ig 4I `th2 a `40 sbrl�br used, provided that on gas sold at the
wells the royalty shall be �(1Y tgr,5 un alized from such sale; on sulfur the royalty shall be fifty
cents (504) per long ton. Lessees ll have free use of oil, gas,.coal, wood and water from said land, except water
from L2ssor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting
any su 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 $100.00 per well, and, if
such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year frail
this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes
'thownership of said land nr the rentals either by conveyance or by the death or incapacity of Lessor, the sum of
ree and 93/100 Dollar(s) ($ 1.00 '' 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.
'' 6. 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 this 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 lest 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
expiration of the primary tern, Lessee is conducting operations for drilling a new well or reworking an old well, this
lease neverthelessshall continue in force as long as such drilling or reworking operations continue, or if, after the
expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force
if drilling or re orxin9 operations are commenced within iix ty (60) Jays after such cessation of product inn; If pro-
duction is restored or additional production is discovered as a result of any such drilling or reworking operations.
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 or 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
judynient 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 (lot) of forty
(40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent
(lot) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing
or welt 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
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F 0206 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 thjs 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 be
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.
ho 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 does not warrant title to said real estate or to the mineral inter-sts in said real estate, hriwever,
It i; agreed that 1F Lessor iwn5 less than 1001 ar the ii rats, tnen, :,nd In that .lent, the royalties anu rentals to
be paid Lessor snall be reduced proportionately.
12. Not withstanding in a provision of this lease 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.
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15. 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.
BOARD OF COUNTY COMMISSIONERS
WELD •O TY COL�■ca:
ATTEST: af-t%J �ei
Weld County,Clerk and incotder
e to-the Board \
Ave$T: LESSEE: •
$CGL IFR FXPIARATiON l'.OMPAPIIL
r hiitant Secr ary By:
SYATQ I C
o SS. Cwor•gu Pthrey, Prost lit.
•
The foregoing instrument was acknowledged before me this day of 19 , by
My commission expires: Witness my hand and official seal.
Notary Public
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F 0208 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT "A" Tr EIED TO AND MADE A PART OF Weld County, Colorado Oil and Gas Lease
dated August , 1983, by and between Weld County, Colorado, lessor, and
Bellwether 'F, plorat'on Company, lessee.
iir ,1 w
TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE SIXTH P.M. , WELD COUNTY, COLORADO c) o
Section 33: A tract of land beginning 50 feet East of the Northwest corner of a' ---1
NE/4 NE/4; thence East S0 feet; thence South to the right of way o.l
C $ S RR Co. ; thence North 74° along right of way to point due w n
South of place of beginning; thence North to point of beginning, I-‹ O
and containing 0.5 acres, more or less; - '
z �Lo
z
ALSO, a tract in NW/4 Nli/4 beginning .1672.6 feet West of the Northeast o,
corner; thence South 160 , West 105 feet to North line of C & S RR G o
Right of way; thence North 74° along right of way 63 feet ; thence m
North 16° , East 87 feet to North lino of Section 33; thence East x O
• 65.5 feet to point of beginning, containing 0.5 acres, more or less; m
H O
CO
ALSO, a tract of land in NE/4 E/4, beginning on North line of Section Z ,_
33, 100 feet Fast o the Northwest corner of NE/4 NE/l; thence n Lo
.
ti w
East 75 feet ; thence South lt!;) feet to C & S RR right of way; thence m
Northwesterly along right of way to point 10') feet East of West x
line of NE/4 NF./4; thence North to the point of beginning, containing q, :'
0. 5 acres, more or less; rn
m
ALSO, a tract in NW/4 NE/4 beginning 100 I•cet West of the Northeast p
corner of NW/ 1 NE/4; thence West. 81 feet; thence South 1', feet ;
thence West 152. 20 feet to C & S RR right of way; thence Sontheasterl , m
along riiht of way to :1 point 100 feet hest of the East boundary lineO
of NW/4 NI' I; thence North to the point of besinning containing 1.0 O
beginning, tr1 c)
acres, more or less; f-'
d
ALSO, :1 tract in Si.). SNi l lyieg and being in the Soutk e.•:t corner of n
p rn
S/2 SF/-4, l'Onta in ill:, 1.43 acres, more or less.
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Signed for identification:
O m
BO.\I,11 01= COUNTY CO.\AITSSfoN[;RS, BLLL4c1 T1 7,R EXPLORATION COMPANY.
,
W1 Li► COLIN1'Y, COI.O 1
1y:
— — -- --— George Aub .y, President.
. . 47-4/;75.../ ...2.2?.[2e. .
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F 0209 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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