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Home My WebLink About20062217.tiff RESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - BRIGHT STAR ENERGY SERVICES, 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, Bright Star Energy Services, Inc., 1580 Lincoln Street, Suite 635, Denver, Colorado 80203, has requested that the bidding procedure be waived according to the policy as set forth in the Weld County Administrative Manual for parcels less than five acres,on the following described mineral acres: E1/2E1/2NE1/4 of Section 20, Township 5 North, Range 64 West of the 6th P.M., Weld County, Colorado WHEREAS, Bright Star Energy Services, Inc. is offering to lease the above described mineral acres, containing 0.2841 mineral acres, more or less, and WHEREAS, the Board finds that the lease offer from Bright Star Energy Services, Inc., in the amount of Two Hundred and Ten and No/100 Dollars($210.00), 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 Bright Star Energy Services, 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 Bright Star Energy Services, Inc., to lease mineral acres, as hereinabove stated, be, and hereby is, accepted. 2006-2217 LE0238 a : _s-r(I 6-kitI 6g 5'o a� WAIVE BID PROCEDURE - BRIGHT STAR ENERGY SERVICES, INC. PAGE 2 The above and foregoing Resolution was,on motion duly made and seconded, adopted by the following vote on the 14th day of August, A.D., 2006. BOARD OF COUNTY COMMISSIONERS /1/4 a WELD COU , COLORADO ATTEST: . J. s`ile, Chair , Weld County Clerk to the Board i lb ,4 t•. . :s ;T: g,4,7 BY: Dep y Cler the Board APP D AS TO FOR • ul Robert D. Masden OgLelaout At rney A l Glenn Vaad Date of signature: g Zi'C 2006-2217 LE0238 2j WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this 8 day of August, 2006, 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: Bright Star Energy Services, Inc., 1580 Lincoln Street, Suite 635, Denver, Colorado 80203 hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of $210.00 , 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: Township 5 North, Range 64 West, 6th P.M. Section 20: A tract of land in the E/2E/2NE/4 Town of Kersey, as described in book 563, Reception No. 1485270, dated March 16, 1966 and more particularly described as follows: Beginning at a point 231 feet North of the center of the Main Line Track of the Union Pacific Railroad, as it now exists; running thence North 125 feet on a line 30 feet West of the East line of the Northeast quarter(NE%) of Section Twenty (20), Township Five (5) North, Range Sixty-four(64)West of the 6th P.M., said line being the West boundary of the present County Road; thence due West 125 feet; thence due South 125 feet; thence due East 125 feet to the point of beginning. Excepting therefrom a tract of land as described in Treasurer's Deed recorded in the office of the County Clerk and Recorder in Book 1166 at Page105, of the records of Weld County, Colorado. (Part of Block 1, Ewing's Subdivision) and containing 0.2841 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 ,e 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 _ a expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on 8 a acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then =9 d 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 5. well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on r H said land or on acreage pooled therewith, the production thereof should cease from any cause after the o primary term, this lease shall not terminate if Lessee commences additional drilling or re-working O a operations within ninety (90) days from date of cessation of production or from date of completion of dry Cl hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the N N o expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is c produced from the leased premises or on acreage pooled therewith. limo cc2006-2217 INS-N 4.4 a ! \\Serverlpublic\CLIENTS\Merit Energy CompanylWeld,Adams E2E2NE 2 Counties,O r l 4 0-20 -R64W1WeldCounty\\Small Tract Oil and Gass Le e-88-06-m k docLCOa3 (Revised 1112000) 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. 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 o placed on said premises, including the right to draw and remove casing. g d 10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No cc raja change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until y, Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or — g g documents and other information necessary to establish a complete chain of record title from Lessor, and '0 c then only with respect to payment thereafter made. No other kind of notice, whether actual or —a a) 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 —`•:,1 en leasehold owner. T . —,0 0 11. Lessee, at its option, is hereby given the right and power at any time and from time to -o c time as a recurring right, either before or after production, as to all or any part of the land described herein Z-41 O and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the o mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the —o ce production or oil and gas, or separately for the production or either, when in Lessee's judgment it is N,n 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 N or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit \\Server\public\CLIENTS1Merit Energy Company\Weld,Adams Counties,D-J BasinlVictor Klein Wells\T5N-R64W 20 NE\Title E2E2NE-20-T5N-R64W\Weld CountylSmall Tract Oil and Gas Lease-8-8-06-mkk.doc (Revised 11/2000) 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 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. 0 13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow o 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 =a cr lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. — _ mod =" 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and " g actions, including the defense of such claims or actions, based upon or arising out of damage or injury, o 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. LO SIM cr)N 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof c including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and o o gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel cm this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any N o such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified o mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to cc 0.1 cancel for such failure or default, specifying the same, stating that if within thirty (30) days from the date —e., of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If such �get \\Servenpublic\CLIENTS\Merit Energy Company\Weld,Adams Counties,D-J Basin\Victor Klein Wells\T5N-R64W 20 NE\Title co M E2E2NE-20-T5N-R64W\Weld County\Small Tract Oil and Gas Lease-8-8-06-mkk.doc (Revised 1112000) 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. 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. Ty «,k. k � ATTEST: �w'�' 1 t Weld County Clerk to th a ,+ �'j e ARIDOF CO NTY COMMISSIONERS ' '` 1 El COU , COLORADO By: 1t i1' a,c;i C • Dep Cler o the Board Chair, oard of County Commissioners AUG 1 4 2006 STATE OF COLORADO}. ACKNOWLEDGMENT INDIVIDUAL }ss COUNTY OF WELD} BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this f day of Ikuqq,iSV , 2006, personally appeared ('1 (3ec Ie , , to me known to be the-identical person, described in and who executed the within and foregoing instrument of writing and acknowledged to me that duly executed the same as a free and voluntary act and deed for the uses and purposes therein set forth. d IN WITNESS WHERE0.7•".. c, reunto set my hand and affixed my Notary seal the _g s, day and year last above writ ?P••• '••••••;� mom.i. i'NOTARY `• — / _ My Commission Expires r. —a— • �0 PUBLIC ., ublic :' •°. ' Address: a o_ My Commission sinuses May 15,2010 _ N N T O a o ii. val 0 =Oo a N O ENO Mil OD O O cc ENO N —N v o \\Server\public\CLIENTS\Merit Energy Company\Weld,Adams Counties,D-J BasinWictor Klein Wells\T5N-R64W 20 NE\Title co mr E2E2NE-20-T5N-R64W1Weld County\Small Tract Oil and Gas Lease-8.8-06-mkk-Corp-Notary.doc (Revised 1112000) a,x6-aai7 LESSEE y: Steven W. Curtis Bright Star Energy Services, Inc. Title: President STATE OF COLORADO } }ss Acknowledgment Corporation COUNTY OF DENVER } On the P day of U yo jf ,2006 , before me the undersigned notary, personally appeared Steven W. Curtis, known personally to me to be the President of Bright Star Energy Services, Inc. and acknowledged that he, as an officer in fact being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as an officer. IN WITNESS WHEROF, I have hereunto set my hand and affixed my notary seal the day and year last above written. Martha Kale, Notary Public ate My Commission expires:as ado •ti;. E Notary Public r ,e Address: 701 Harlan St. E-34 dd . 'f1 Lakewood, CO 80214 11' . in 111 1422IIIIVIIIVIII(IIIIIIIIII IIIIII III(IIII IIII IIII 3414222 08/24/2006 11 Weld County, CO 5 of 5 R 0.00 0.00 Steve Moreno Clerk& Recorder Server\public\CLIENTS\Merit Energy Company\Weld,Adams Counties,DJ BasinWictor Klein Wells\T5N-R64W 20 NE\Title E2E2NE-20-T5N-R64W\Weld County\Small Tract Oil and Gas Lease-8-8-06-mkk-Corp-Notary.doc (Revised 11/2000) '41 a pa Bright Star Energy Services, Inc. _ 1580 Lincoln St.,Suite 635 Complete Land Services Denver, Colorado 80203 303-864-9680 (Fax)303-861-7362 August 8, 2006 Bruce Barker Weld County Attorney 915 10th Street Greeley, CO 80632 Dear Bruce: RE: Township 5 North, Range 64 West, 6th P.M. Section 20: A tract of land in the E/2E/2NE/4 Town of Kersey, as described in book 563, Reception No. 1485270, dated March 16, 1966 and more particularly described as follows: Beginning at a point 231 feet North of the center of the Main Line Track of the Union Pacific Railroad, as it now exists; running thence North 125 feet on a line 30 feet West of the East line of the Northeast quarter(NE/) of Section Twenty (20), Township Five (5)North, Range Sixty-four (64) West of the 6th P.M., said line being the West boundary of the present County Road; thence due West 125 feet; thence due South 125 feet; thence due East 125 feet to the point of beginning. Excepting therefrom a tract of land as described in Treasurer's Deed recorded in the office of the County Clerk and Recorder in Book 1166 at Page105, of the records of Weld County, Colorado. (Part of Block 1, Ewing's Subdivision) Enclosed are the 2 executed originals of the Weld County's Small Tract Oil and Gas Lease supplied to us by your office and check #9096 in the amount of$210.00. Please execute the lease in front of a notary, and return the executed and notarized lease to us in the self-addressed and stamped envelope, keeping a copy of the Oil and Gas Lease for your records, ,and please deposit the check in your bank. Please advise us immediately if you do not own this interest. The oil and gas lease provides that we cannot enter on your land to drill a well or conduct any other operations. In the oil and gas business, this is called a "No surface occupancy lease". Our client will be drilling a well somewhere in the quarter-section on which your land is located, but again, not on your property. If our client finds production, you will participate as to your proportionate royalty amount. Please do not hesitate to call us at(800) 721-8399, if you have any questions. Sincerely, /c'44 Martha K. Kale Landman Bright Star Energy Services, Inc. Cc: Dave Moses Cc: Esther Gesick Bright Star Energy Services, Inc ENCLEw000NA BANK m z 9 09 6 1580 Lincoln St.,Suite 635 82-195/1070Denver,CO 80203 303-864-9680 8/]/Z006 PAY TO ORDER OFE Weld County. Colorado $**21 0.00 Two Hundred Ten and 00/100*****************************s**s***-**s*******a*#*****s*** DOLLARS a Weld County,Colorado •/MEMO Oil& Gas IFase ('• Re 11'00909611' I: L0700L957I: LL 0454911' • WELD COUNTY ATTORNEY'S OFFICE 915 TENTH STREET P.O. BOX 758 GREELEY, CO 80632 W ok IWEBSITE: www.co.weld.co.us PHONE: (970) 336-7235 FAX: (970) 352-0242 COLORADO August 4, 2006 Martha K. Kale, Landman Bright Star Energy Services, Inc. 1580 Lincoln Street, Suite 635 Denver, CO 80203 Re: Weld County's Small Tract Oil and Gas Lease Dear Ms. Kale: Enclosed are two originals of Weld County's Small Tract Oil and Gas Lease. Last month, you sent to Esther Gesick of the Weld County Clerk to the Board's Office two original lease agreements for property located in Section 20, Twonship 5 North, Range 64 West of the 6t'P.M., Weld County, Colorado. Included was a check made payable to Weld County in the sum of$100.00. I am returning to you the two lease agreements you sent to Ms. Gesick, along with the check for $100.00. I ask that you see that the two enclosed originals of Weld County's Small Tract Oil and Gas Lease be executed and returned for approval and signature. Also enclosed is a copy of Weld County's Mineral Leasing Policy. Please note that although this provision allows for waiving the bid process for the lease, it does require the payment of$200.00 bonus. Given that the total acreage involved appears to be less than an acre in size, the total amount due would be $210.00. I will be happy to ask the Board of County Commissioners to approve the lease when I receive the two signed originals and a check made payable to Weld County, Colorado in the sum of $210.00. Please call me at (970) 356-4000, ext. 4390, if you have any questions or wish to discuss. ce T. er !�� Weld County Attorney pc: Esther Gesick I f n1 c 1 O DES RECEIPT DATE //CiC cNO. 316 9 0 Q RECEIVED FROM 8,7i,h A `5 ,- E/�C•,El-7e,', .Se,-s ire.S, //2 C _ ".Oc? •% , ADDRESS Omin • o w r. cc -AA, Acihd,S u tip/ Aril ez."/ °%0c) $ Q/0 co S x 2p00 FOR 0// akid 3R..s /rose mi.-O ACCOUNT HOW PAID O AML OF A V (� ACCOUNN T CASHC?L 7�-IO 47_47 - CC ty 0 Lu AMT. CHECK PAID E S 14,1 BALANCE LI MONEY BY ` DUE _ ORDER ©2001REpPaRM4 8L808 J Hello