HomeMy WebLinkAbout20022890.tiff DEPARTMENT OF PLANNING SERVICES
' PHONE (970)353-6100, EXT.3540
CFAX (970)304-6498
1555 N. 17TH AVENUE
GREELEY, COLORADO 80631
COLORADO
October 11, 2002
TO: SURROUNDING PROPERTY/MINERAL OWNERS
CASE NUMBER: CZ-603
There will be a Public Hearing before the Weld County Planning Commission on Tuesday,September 3,2002,
at 1:30 p.m., in Room 210, Weld County Planning Department, 1555 N. 17th Avenue, Greeley, Colorado
concerning the request of:
NAME: Don & Lisa Buxman
C1/4 FOR: Change of Zone from A(Agricultural)to E (Estate)for an 8-lot minor subdivision.
LEGAL DESCRIPTION: Part of the W2 SW4 of Section 21, T6N, R66W of the 6th P.M., Weld County,
Colorado.
LOCATION: East of and adjacent to WCR 29; approximately 1/4 mile north of WCR 66.
Your property is within five-hundred (500)feet of the property on which this request has been made or you
may have an interest in the minerals located under the property. For additional information write or telephone
Chris Gathman, Planner.
Comments or objections related to the above request should be submitted in writing to the Weld County
Department of Planning Services, 1555 N. 17th Avenue, Greeley, Colorado 80631, on or before the date of
public hearing.
For your convenience,the Department of Planning Services has instituted a Planning Commission Agenda
Phone Line. In some circumstances cases need to be continued to a later date. To ensure that this case
is being heard, you may call 970-304-6499, up to the day of the scheduled hearing for this information.
2002-2890
(9 r"1
SURROUNDING PROPERTY OWNERS AND/OR
SUBSURFACE ESTATES/INTEREST OWNERS
r
CZ-603
FRITZLER
13653 HWY 392
GREELEY CO 80631
LEFFLER
14492 HWY 392
GREELEY CO 80631
SWANSON
31518 WCR 29
GREELEY CO 80631
SWANSON
31793 WCR 29
GREELEY CO 80631
WARD
32301 WCR 29
GREELEY CO 80631
FOUNTAINHEAD RESOURCES LTD
7860 E. BERRY PLACE SUITE 120
ENGLEWOOD CO 80111
HYNDREX RESOURCES
300 E. 16TH STREET
GREELEY CO 80631
CERTIFICATE OF MAILING
I hereby certify that I have placed a true and correct copy of the surrounding property owners and owners
and lessees of minerals in accordance with the notification requirements of Weld County in Case Number
CZ-603 in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached
list this 9th day of July, 2002.
Donita May
AFFIDAVIT OF INTEREST OWNERS
SURFACE ESTATE
Subject Property Buxman Estates-SW%of Sec 21, T6N, R66W of the 6th PM, Weld County, CO
THE UNDERSIGNED, states that to the best of his or her knowledge the attached list is a true and accurate
list of the names, addresses, and the corresponding Parcel Identification Number assigned by the Weld
County Assessor of the owners of property (the surface estate) within 500 feet of the property being
considered. This list was compiled from the records of the Weld County Assessor,or an ownership update
from a title or abstract company, or an attorney. The list compiled from the records of the Weld County
Assessor was assembled within thirty days of the application's submission date.
Signature
V/2-010 e
Date
8
PROPERTY OWNERS WITHIN 500 FEET
Please print or type
NAME MAILING ADDRESS CITY/STATE/ZIP CODE ASSESSOR'S PARCEL
IDENTIFICATION#
Buxman, Harold C & Doris F. 14441 Weld Co. Rd. 66, Greeley, CO 80631 Parcel#080521000052
Buxman, Harold C & Doris F. 14441 Weld Co. Rd. 66, Greeley, CO 80631 Parcel #080521000006
Fritzler, Paul 13653 Highway 392, Greeley, CO 80631 Parcel#080521200049
Leffler, Donn 14492 Highway 292, Greeley, CO 80631 Parcel #080521000003
Swanson, Helen 31518 Weld Co. Rd. 29, Greeley, CO 80631 Parcel#080528000001
Swanson, John T. & Ruth 31793 Weld Co. Rd. 29, Greeley, CO 80631 Parcel#080529000026
Ward, Harlan R. & Darlene S. 32301 Weld Co. Rd. 29, Greeley, CO 80631 Parcel#080520000010
Ward, Harlan R. & Darlene S. Trustees 32301 Weld Co. Rd. 29, Greeley, CO 80631 Parcel#080520000037
9
AFFIDAVIT OF INTEREST OWNERS
MINERALS AND/OR SUBSURFACE
Property Legal Description: The SW% of Sec 21, T6N, R66W of the 6th PM, Weld County, Colorado
Property Legal Parcel Number: 080521000053, 080521000052 & 080521000006
STATE OF COLORADO
ss.
COUNTY OF WELD
THE UNDERSIGNED, being first duly sworn, states that to the best of his or her knowledge, the
attached list is a true and accurate list of the names and address of all mineral owners and lessees of
mineral owners on or under the parcel of land which is the subject of the application as their names appear
upon the real property records in the Weld County Clerk and Recorder's Office.
By: a./I
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The foregoing instrument was subscribed and sworn to me this ` day of /_2Q0,09..
WITNESS my hand and official seal.
My Commission Expires: `- (0. O C
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�-. NAMES OF MINERAL OWNERS AND LESSEES OF MINERAL OWNERS
(Please print or type)
NAME MAILING ADDRESS CITY/STATE/ZIP
Fountainhead Resources, LTD 7860 E. Berry Place. Suite 120 Englewood, CO 80111
Hyndrex Resources(prior to Fountainhead Res., LTD) 300 E. 16th Street Greeley. CO 80631
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10
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4311 Highway 66, Suite 4
Longmont, CO 80504
Office (970) 535-9318
Denver (303) 485-7838
Fax: (970) 535-9854
Weld County Planning Department
ENVIRONMENTAL SERVICES, LLC GREELEY OFFICE
JUL 2 5 2002
July 22, 2002 R CL L A E D
David A. Gottenborg, Manager
Fountainhead Resources, LTD
7860 E. Berry Place, Suite 120
Englewood, CO 80111
Dear Dave,
This letter is to notify you that the Weld County Department of Planning Services is
reviewing the Change of Zone application for the Buxrnan Subdivision and has
scheduled a hearing with the Weld County Planning Commission. The hearing is
scheduled for Tuesday, September 3r°, 2002 at 1:30 p.m. It will be held in Room
210, Weld County Planning Department, 1555 N. 17th Avenue, Greeley, Colorado.
For your convince, I have included a drawing of the subdivision with the easements,
and conditions we discussed shown on the Preliminary Plat. If you have any
questions, please contact myself or Chris Gathman, Planner, Department of Planning
Services, (970) 353-6100 ext. 3540.
Sincerely,
Robb Casseday
Architect, Land Planner
AgPro Environmental Services, LLC
4311 Highway 66, Suite 4
Longmont, CO 80504
(970) 535-9318 EVISIT
rcasseday(l agpros.com
Cc: Department of Planning Services, Weld County, Colorado •
Your "Pro Ag"Environmental Professionals
•
SEN aE•: Ca M•LETE THIS SECTI aN C e M•LETS THIS SECTUN eN •ELIVE••
• Complete Items 1,2,and 3.Also complete A. Signature
Item 4 If Restricted Delivery is desired. O Agent
• Print your name and address on the reverse • X O Addressee
so that we can return the card to you. B. Received by(Printed Name) C. Date of Delivery
• Attach this card to the back of the mailpiece,
or on the front If space permits. F
D. Is delivery address different from item 1? ❑Yes
1. Article Addressed to: If YES,enter delivery address below: O No
David Gottenborg, Manager .
I Fountainhead Resources, Ltd
7860 E. Berry Pl, Ste. 120
Englewood, CO 80111 3. Servi ype
Certified Mail O Express Mail
❑Registered O Return Receipt for Merchandise
❑Insured Mail O C.O.D.
•
4. Restricted Delivery?(Extra Fee) O Yes
' 2. Article Number
(Transfer from service labs) 70OO 1 53O actg. 4'54$ glib
\PS Form 3811,August 2001 Domestic Return Receipt 102595-01-M-2509
U.S.Postal Service
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GAS DIVISION ORDER r
T. PanEnergy Field Services,Inc. d Lease No:4296
(fka Associated Natural Gas, Inc.)
P.O. Box 5493
Denver, CO 80217 ✓ Date:December 17, 1996
The undersigned certifies and warrants that we are entitled to receive and distribute payments for Gas(as more individually defined herein)
produced and saved from the Doris#1 lease or unit, located in the County of Weld, State of Colorado,more particularly described as
follows:
Township 6 North.Range 66 West
Section 21: W/2 SW/4,containing 80 acres more or less
Owner No. Credit To Division of Interest Decimal
21944 Harold C.Buxman&Doris F.Buxman,joint tenants 20.0%RI .200000
59101_3 Hyndrex Resources 80.0%WI .800000
Effective at 8:00 A.M. date of first purchase,you are hereby authorized to take or retain possession of all Gas from said property(ies)
ofd after the effective day and to give credit as set forth above for all proceeds derived from the sale of Gas from said property(ies)
st ;t to the conditions, covenants and directions set out below:
FIRST: It is understood that the Gas produced from the above-described property(ies)is being sold under that certain Gas Purchase and
Processing Agreement dated June 22,1984 between Frontier Oil&Gas of Texas Inc.,as"Seller,"and PanEnergy Field Services, Inc.,
as"Buyer,"and that all terms and covenants contained therein,and in any amendments,extensions,or renewals thereof shall govern and
be binding upon the parties hereto in alt respects which shall include,but not be restricted to,the price to be paid for said Gas and the time
when such payments are to be made. As used in this Division Order,the term"Gas"shall be deemed to include casinghead gas,gasoline
and all other products which PanEnergy Field Services,Inc.receives and/or recovers by processing from Gas produced from wells on said
property(ies).
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall be deemed
and considered an essential part of this division order in like manner and with the same effect as if printed above our signatures.
The undersigned expressly waive any claim against you for any and all amounts which may be due us from others for production prior to
the effective date hereof.
Signatures of Witnesses Owners Sign Below Taxpayer I.D.Number or
(Enter Mailing Address) Social Security Number
Address
•
esf
EXHIBIT
copy
SECOND: Payments are to be made monthly by checks of PanEnergy Field Services,Inc.to be delivered or mailed to
the parties thereto entitled at the addresses above given,provided that if the amount due any owner is less than Twenty-
five Dollars(S25.00)per month, PanEnergy Field Services, Inc.,at its option,may defer the making of such payment
until such time as the aggregate amount due exceeds said sum. The undersigned authorizes PanEnergy Field Services,
Inc.to withhold from the proceeds of any and all Gas referred to herein the amount of any tax placed thereon,or on the
production thereof, including but not limited to any severance, production or occupation tax, by any governmental
authority, local, state and/or federal,and to pay the same in our behalf with the proceeds so withheld.
THIRD: In the event of any adverse claim of title or in the event title shall not be satisfactory to PanEnergy Field
Services, Inc.at any time during the term of this Division Order, each of the undersigned agrees to furnish complete
abstracts of title and other evidence of title satisfactory to PanEnergy Field Services,Inc.and authorizes PanEnergy Field
Services, Inc. to withhold payment, without obligation to pay interest on the amount so withheld, until satisfactory
indemnity shall be furnished to PnnEncrgy Field Services,Inc.against such adverse claims or any such defects in the title,
or until title shall be made satisfactory to PanEnergy Field Services, Inc. Each undersigned party,as to the interest of
such party hereunder,respectively agrees,in the event suit is filed in any court affecting title to said Gas,either before
or after severance,to indemnify and save harmless PanEnergy Field Services,Inc. against any and all liability for loss,
cost,damage,and expense which PanEnergy Field Services,Inc.may suffer or incur on account of receiving and paying
said party the proceeds derived from the sale of said Gas. Where PanEnergy Field Services, Inc. pursuant to the
provisions hereof, withholds payment, or any part thereof, each undersigned party from whom payment is withheld
severally agrees to indemnify and hold PanEnergy Field Services, Inc. harmless of and from all liability for any tax,
together with all interest and penalties incident thereto, imposed or assessed against,or paid by it on account of the sum
or sums so withheld from payment to said party,and deduct all such taxes,interest and penalties so paid it from any sums
owing by it to said party.
FOURTH: The undersigned severally agree to notify PanEnergy Field Services,Inc.of any change of ownership,and
no transfer of interest shall be binding upon PanEnergy Field Services, Inc. until transfer order and the recorded
instrument evidencing such transfer, or a certified copy thereof,shall be furnished to PanEnergy Field Services, Inc.
Transfer of interest shall be made effective 8:00 A.M.on the first day of the calendar month in which proper notice is
received by PanEnergy Field Services,Inc. PanEnergy Field Services,Inc. is hereby relieved of any responsibility for
determining if and when any of the interests hereinabove set forth shall or should revert to or be owned by other parties
as a result of the completion of discharge of money or other payments from said interests,and the signers hereof whose
interests are affected by such money or other payments, if any,agree to give PanEnergy Field Services,Inc.notice in
writing by registered letter addressed to PanEnergy Field Services,Inc.,P.O.Box 5493,Denver,Colorado 80217, Attn:
The Division Order Department,when any such money or other payments have been completed or discharged, or when
any division of interest other than that set forth above shall,for any reason,become effective and to furnish transfer order
accordingly,and that in the event such notice shall not be received,PanEnergy Field Services,Inc.shall be held harmless
in the event of,and is hereby released from,any and all damage or loss which might arise out of any overpayment.
FIFTH: If any portion of the proceeds derived from the sale of Gas is subject to refund under any order, rule or
regulation of the Federal Energy Regulatory Commission or the provisions of the Natural Gas Act or Natural Gas Policy
Act of 1978, PanEnergy Field Services, Inc. may hold without interest the portion of the proceeds subject to refund
unless indemnity satisfactory to PanEnergy Field Services,Inc.has been furnished, or until PanEnergy Field Services,
Inc's.refund obligation has been finally determined. If any portion of the proceeds derived from the sale of Gas is paid
over by PanEnergy Field Services,Inc.under any order,rule or regulation of the Federal Energy Regulatory Commission
or the provisions of the Natural Gas Act or Natural Gas Policy Act of 1978,PanEnergy Field Services,Inc. is authorized
to recover the amount of the refund applicable to the interest of each of the undersigned from future payments,or at
PanEnergy Field Services, Inc's. election, it may therefore invoice the undersigned, plus the legal rate of interest
PanEnergy Field Services,Inc. is or may be required to pay in connection with the undersigned's portion of the refund.
SIXTH: This Division Order shall become valid and binding upon each and every owner above named upon execution
hereof by such owner regardless of whether or not any of the other above-named owners have so signed. Each
undersigned owner ratifies and confirms his oil and gas lease as being in full force and effect as of the date hereof.
SEVENTH: The Owner executing this Division Order, in consideration of payments by you as above provided for,
agrees to pay all royalty owners and all other persons who may have right,title or interest in said gas and further agrees
to protect,indemnify and hold you harmless from and against any and all loss,cost or expense which you may suffer or
sustain by reason of such payment regardless of how any such claim or demand may arise,including all costs or expenses
incurred by you in defending your position in any such claim,suit or action.
, ,
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
On this Aso day of '41c- 1 1996, before me personally appeared _
e 4 � , of Hyndrex Resources, the Lessee, known to me to
be the person wJtose nahf is subscribed to the within instrument, and acknowledged that _
.-r. executed this instrument for the purposes therein contained.
In witness whereof, I have hereunto set my hand and official seal.
My Commission expires:
Notary Public
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
On this 972 day of -_13 , 1996, before me personally appeared
/fcr rc/d e . ewe titan .t. Do re s F: (3u K rn Q n . , the Lessors, known to me
to be the persons whose names are subscribed to the within instrument, and acknowledged that
Harold C nOrts f u crho-executed this instrument for the purposes therein contained.
In witness whereof, I have hereunto set my hand and official seal.
My Commission expires: My Commission Expires May 14,2000
Notary P Ic
OIL DIVISION ORDER
TO: DUKE ENERGY TRANSPORT & TRADING COMPANY Lease No. 53018
(flea PanEnergy Transport&Trading Company)
•1'O Box 5493
Denver, CO 80217 Date: February 10, 1998
The undersigned,and each of us, guarantee and warrant that we are the legal owners of our respective interest,in the
proportions hereinafter stated, in all oil,condensate and/or other hydrocarbons produced and saved from the DORIS#1
lease, located in Weld County, State of Colorado,described as follows:
Township 6 North,Ranee 66 West
Section 21: W/2 SW/4, containing 80 acres more or less
•
Effective at 8:00 A.M. August 1, 1996 and until further written notice,you are authorized to receive all such oil production,
for your own purchase or for resale,to receive payment therefore, to give credit for all proceeds derived therefrom and pay
therefore us follows:
Owner No, Credit To .4e.e° Interest Decimal Interest
21944 Harold C. Buxman &Doris F. Buxman,joint tenants 20.0%RI .200000
59101_3 Hyndrex Resources 80.0%WI .800000
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each
shall be deemed and considered an essential part of this division order in like manner and with the same effect as if printed
above our signatures.
The undersigned expressly waive any claim against you for any and all amounts which may be due us from others for
production prior to the effective date hereof.
r
Signatures of Witnesses Owners Sign Below Taxpayer ID Number or
(Enter Mailing Address) Social Security Number
Harold/,C/ gq C.Buxman&D �,F.iu an
Address/ 5`'`� / —to J ;ft fa •
• e 3 TELEPHONE(Optional)
�r�P//Pn �! Dk'
Hyndrex Resources
Address
TELEPHONE(Optional)
•
•
•
Address
TELEPHONE(Optional)
ESF:red
•
• C i•, V
The following covenants arc also part of this division order and shall be binding upon u,.,above signal and upon his or hei
successors,legal representatives and assigns.
FIRST: The'word "oil"as used herein is hereby declared to include,but is not limited to,condensate and all marketable
�— liquid hydrocarbons produced and saved hereunder. All oil received and purchased hereunder shall be merchantable oil and
shall become your property as soon as the same is received into your custody or that of any carrier designated by you. You
are not expected to receive oil in definite quantities,nor for fixed periods, nor to provide storage.
SECOND: The oil received and purchased hereunder shall be delivered f.o.b.to any carrier designated by you which gathers
and receives said oil,and you agree to pay for such oil to the above signed according to the division of interests herein
specified at die price agreed upon between you and the lease operator.
THIRD::Quantities of oil purchased hereunder shall be determined by the method of measurement and computation
employed by you or the Agent designated by you to receive such oil including but not by way of limitation,the gauging of
storage tanks using regularly compiled tank tables, the use of certified truck gauges,and the use of meters or any other
reasonably accurate method of measurement and computation. You shall correct the volume and gravity to a temperature of
60°Fahrenheit and you shall deduct from such corrected volume the full percentages of basic sediment,water and other
impurities as shown by your test. You may refuse to receive any oil not considered merchantable to you.
FOURTH: Payments shall be made monthly for oil received and purchased during the proceeding month,by your checks
delivered or mailed to the above signed at the address above stated,provided that if, at any time,the monthly payment due
the above signed shall be less than twenty-five dollars($25.00),you may defer such payment,without interest, until the
amount payable to the above signed equals or exceeds the sum of twenty-five dollars($25.00), in which event,payment shall
be made at the next regular settlement date. You are hereby authorized to with hold from the proceeds of any and all runs
made hereunder the above signed proportionate share of any tax levied and assessed by any governmental authority on the oil
received and purchased hereunder and to pay the same.
FIFTH: The above signed agrees to furnish evidence of title satisfactory to you. Until such evidence is furnished or in the
event of any adverse claim,oil related lien or dispute at any time concerning tide in the above described real property or the
oil produced therefrom,you may withhold payment for oil accruing to the interest or interests affected thereby until you are
indemnified to your satisfaction or until such adverse claim, lien or dispute shall have been fully settled,without liability for
interest in either case. If suit is filed affecting the interest of the above signed,written notice thereof shall be given you,at
the above address by the above signed,together with a certified copy of the complaint or petition filed. If you arc made a
party to such proceedings, the above signed agrees to indemnify you against any judgment rendered therein and to reimburse
you for any costs, attorney's fees or other expenses incurred in connection therewith.
SIXTH: You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof
thereof. Each signer agrees to notify you in writing of any change in their ownership and agrees that any transfer,
assigmnent,or conveyance of any of his or her interest,however accomplished,shall be made subject to the division order
and effective at 8:00 A.M.on the first day of the calendar month following the receipt of said notice by you. In the event said
writtep�notice is not received by you,you shall be held harmless for error resulting in over or underpayment,or wrong
payment of any such sum or sums. Should adjustments be necessary you shall have rights to set off any and all individual or
joint liabilities the above signed has with you, including but not limited to proceeds from this and other lease interests owned
by,the above signed.
SEVENTH: If the above signed is a working interest owner and/or operator,we guarantee and warrant that all oil tendered
hereunder has been or will be produced and delivered in compliance with all applicable federal,state and local laws,orders,
rules and regulations.
EIGHTH: This order shall bind each interest owner as soon as signed by them,whether or not signed by any other owner.
All provisions herein contained shall apply to each signer hereof separately and not jointly. This order may be executed in
counterparts,all of which together shall constitute one division order. No termination of this order shall be effective without
giving thirty(30)days'prior written notice. In consideration of the purchase of oil hereunder,consent is given you and any
pipeline company which you may cause to connect with the wells and tanks on said land,to disconnect and remove such
pipelines,in case of termination by either you or the above signed of purchases under this division order.
•
ADDENDUM ATTACHE ., f0 OIL AND GAS LEASE
DATED MAY 1, 1996
BETWEEN HAROLD C. BUXMAN, DORIS F. BUXMAN, DONALD D. BUXMAN AND
LISARAE BUXMAN, LESSORS
and
HYNDREX RESOURCES
THIS ADDENDUM shall supersede and modify the printed Oil and Gas Lease of same
date, to the extent the provisions herein conflict therewith.
1. Nature of Lease: The Lease shall be granted only to oil, gas, casinghead
gasoline, and all other gases, whether in liquid or gaseous form.
2. Royalty: The royalty on oil, gas, and other hydrocarbons covered by this Lease
shall be one-fifth (20%) and wherever one-eighth (1/8) appears, it will be amended to read
one-fifth (20%).
3. Minimum Use of Surface: Under any circumstance, Lessee shall make all
reasonable efforts to use only the minimum amount necessary of Lessors' property in its
operations so as to minimize any damage to, or interference with, Lessors' property. The
maximum acreage affected shall be no more than three (3) acres. "Affected acreage" shall
include the well site, any roads installed, areas for pipelines and utilities, tank batteries, and any
other use of the property.
.-. 4. Location of Facilities: Approval of Lessor: Facilities, including the drilling site,
shall generally be located so as to minimize damage or interference with Lessors' property.
Lessee shall consult with Lessors prior to the proposed location of any exploration, well site,
or facility related to this Lease, and Lessee shall not conduct any activities on the subject
property without the prior written approval of Lessors as to the location of such activities.
Lessors shall not withhold such approval if the proposed location avoids unreasonable damage
or interference with the subject property and its development and so long as any such location
is consistent with the other terms hereof.
5. Distance from Established Improvements: Any drilling site shall not be nearer
than 300 feet to improvements on the leased premises without the written consent of Lessors.
The term "improvements" shall include all buildings, irrigation facilities, and other permanent
structures on the property.
6. Pipelines: Pipelines shall be buried not less than 48" beneath the surface and
water packed upon installation. In excavating, the soil shall be separated and then returned back
in the same order and leveled, with topsoil on top. No pipeline shall be permitted which serves
any well not located on the leased premises, unless the leased premises are unitized with such
well.
7. Roadways: Whenever reasonably possible, Lessee shall use established or planned
roadways on the premises and avoid damage to the subject property. Should it be reasonably
required that Lessee establish its own roadway, then the same shall be located consistent with
the terms of this Addendum in order to minimize interference with the surface usage and avoid
unreasonable damage consistent with the other terms hereof.
8. Damages: Bonuses and rentals paid or promised to be paid are considerations
solely for the privilege of leasing and not compensation in any way for the surface use of the
leased premises. In addition to crop damage, Lessee shall pay and be responsible to Lessors for
all damages to the leased premises and for the right to use the same by reason of its exploration
and production activities in accordance with the following terms:
•
a. Restoration: Upon completion of any activity by Lessee, the leased
premises shall be restored to its original condition as near as is reasonably practicable. If a well
site is drilled, all matters brought upon the premises and not required for production shall be
removed within a reasonable time, including any and all concrete, betonite, sludge pits, etc., and
not just buried. Upon completion of all activities, the facilities of Lessee shall be completely
removed from the premises and the same restored as above provided.
b. General and Special Damages: The Lessee shall be liable to Lessors for
"IN
all general and special damages caused by operations hereunder including, but not limited to,
damages to tangible personal property, real property, crops, fences, livestock, irrigation wells,
pumps, sprinklers, and other equipment, including damages for disruption of irrigation water for
normal farming and harvesting operations. Damages for the well site and initial drilling
operation are established at $2,500, payable one month after drilling operations commence. If
a producing gas or oil well is established which requires roads and structures, the Lessee will
provide satisfactory culverts, ditches, and the like to maintain an adequate flow of irrigation
water to the surface owner's fields at Lessee's sole expense. In addition, Lessee will pay Lessors
a minimum damage of Five Hundred ($500) dollars per year, or fraction thereof, plus other
actual damages caused by its operations that have not been specifically covered by this
agreement.
9. Providing of Information: At Lessors' request, Lessee shall provide Lessors with
all geological information obtained from Lessee's drilling and exploration upon the leased
premises free of charge. Such information will remain confidential so long as this lease is in
existence.
10. Limitations on Unitization and Pooling: Lessee shall not unitize, pool, or
combine the leased premises with other lands for oil production. Any unitization, pool, or
combination for production of gas purposes shall be subject to Lessors' approval, which will not
be unreasonably withheld so long as the proposed unit, pool, or combination is in accordance
with established rules and regulations of the Colorado Oil and Gas Commission, and the same
will not be detrimental to Lessors sharing in the production from the applicable well.
11. Limitation on Shut-in Provision: Notwithstanding the terms of the printed form
to which this exhibit is attached, if a well is drilled which is capable of producing gas and the
same is not sold or used for a period of nine (9) months, Lessee shall pay or tender as royalty
an amount equal to $100.00 per acre of the leased premises on or before the next anniversary
date of this Lease after the expiration of said nine (9) month period. Upon payment of such
amount, this Lease shall be held as a producing property under paragraph 2 of the printed Lease
form for an additional year, but no longer. If there is no actual production before the end of that
additional year, this Lease shall terminate unless capable of extension in accordance with other
terms hereof.
12. Force Majeure. The force majeure clause or the clause of the Lease relating to
interference with Lessee in the development and production or for want of a market shall in no
event extend the Lease beyond its stated primary term for more than one (1) year.
13. Access-Fencing of Operations: Subject to well competition, Lessee will, at
Lessors' request, fence any roads used or constructed by it and other operations, including the
well site, to allow livestock to pasture safely on the balance of the leased property.
14. Reclamation: At the completion of any drilling operations, the Lessee will
complete its move-out and the reclamation of any affected land within one hundred eighty (180)
days of the completion of said drilling operations.
15. Construction. The Oil and Gas Lease shall be construed pursuant to the laws of
the State of Colorado and the implied covenants of development, and production of the State of
Colorado shall be applicable thereto.
LESSEE: LESSORS:
HYNDREX RESOURCES
H OLD . BUXMAN
\_/ DO IS F. BUXMAN .�
JUN-24-2002 MON 04:01 PM JiLLD CO GOVT FAX NO, 97"620242 P, 02/02
LEE Morrison Buxman
Pape 1
From:
LEE Morrison
To: Chris Gathman
Date: 6/24/02 3:48PM
Subject: Buxman
I have reviewed the Joint Development Agreement for minerals and the North Weld Water agreement
submitted by AgPro on the behalf of the Buxman's and find themto be adequate for a change of zone
application.
Lee D. Morrison
Assistant Weld County Attorney
915 10th St., PO Box 768
Greeley,CO 80834
(970)366-4000 x 4395
FAX 352 0242
This a-mall contains confidential
and/or privileged information,
If the reader Is not the Intended recipient,
please reply end delete your copy of this
message."
r
t.
FOUNTAINHEAD RESOURCES, LTD.
A COLORADO LA9ra'LIABILITY COMPANY
SUITE 120
GREENWOOD PARK EAST
7860 EAST BERRY PLACE
ENGLEWOOD, COLORADO 80111
Telephone(303)488-9983
Facsimile(303)773-3042
August 22, 2002
Mr. and Mrs. Harold C. Buxman
Mr. and Mrs. Don Buxman
14441 WCR 66
Greeley, CO 80631
Re: Joint Development Agreement -Doris#1 Well
Section 21: SW/4, T6N, R66W, Weld County, Colorado
Ladies and Gentlemen:
Attached to this letter is a copy of a Joint Development Agreement to be executed by and
re% among yourselves and the undersigned covering certain aspects of the joint development
of the referenced property.
It is our understanding that our joint execution of this Agreement is contingent upon the
Weld County governmental authorities approving a Change in Zoning Request that you
have submitted regarding a proposed real estate development affecting the property.
Please be assured that Fountainhead Resources, Ltd. will execute the attached Agreement
upon approval of such Zoning Request in substantially the form you have requested.
Fountainhead's execution of the same is, of course, contingent upon a simultaneous
execution of the same by and amongst yourselves.
If you have any questions or comments, please do not hesitate to call. Thank you.
Sincerely,
Fountainhead Resources, Ltd.
l
By:
� . id A. o enborg, Manager
r , ..
JOINT DEVELOPMENT AGREEMENT
THIS JOINT DEVELOPMENT AGREEMENT ("Agreement") is made , 2002,
by and among FOUNTAINHEAD RESOURCES, LTD., a Colorado limited liability
company, 7860 East Berry Place, Suite 120, Englewood, CO 80111 ("FR"), HAROLD C.
BUXMAN and DORIS F. BUXMAN, 14441 WCR 66, Greeley, Colorado 80631 and DON
BUXMAN and LISA BUXMAN, 2478 North 35`h Avenue, Greeley, Colorado 80634 (with
Harold C. Buxman, Doris F. Buxman, Don Buxman and Lisa Buxman collectively referred
to herein as "Surface Owner").
A. Surface Owner owns the surface estate of that certain tract of land known as
the SW/4 of Section 21, T6N, R66W, County of Weld, State of Colorado, (Weld County Tax
Assessor Parcel Nos. 080521000053, 080521000052, and 080521000006) containing 160
acres, more or less (the"Property");
B. A portion of the Property has been subdivided and designated as the Buxman
Estates Subdivision (the "Subdivision"), the plat of which was recorded , 2002,
Reception # , Weld County, Colorado records (the "Subdivision Plat"), and all
references herein to Tracts, Lots and/or Blocks shall be to those identified as such on the
Subdivision Plat.
C. The Subdivision is subject to that certain Oil and Gas Lease dated May 1,
1996, recorded July 29, 1996, in Book 1558, Page 641, Reception #2503007, from Harold C.
Buxman, et ux, lessor, to Hyndrex Resources, lessee (the "Lease"). FR has succeeded to the
lessee's rights and obligations under the Lease and is the current owner of the leasehold
interest thereunder;
D. FR's predecessor in interest has drilled an oil and gas well (the "Doris #1
Well") on the Property and has installed certain production facilities associated therewith,
including but not limited to a separator, production storage tank, flowline (i.e., a 2-3/8`h inch
diameter iron pipe which carries water or hydrocarbons from the wellhead to a production
facility such as a separator or storage tank), and a 3/8ths inch diameter stainless steel gas
supply line which carries natural gas from the wellhead to a motor valve unit located on the
separator. The existing flowline and gas supply line lie generally in a northwest to southeast
direction extending from the Doris #1 wellhead to the existing production storage facilities
across the proposed Subdivision.
E. The Subdivision is being developed by Surface Owner for residential estate
uses (the "Development"). Such development requires the relocation of the existing flowline
and stainless steel supply line into and within the easements established therefor on the
Subdivision Plat. Surface Owner shall pay the costs attributable to such relocation as
provided herein; and
F. This Agreement sets forth the parties' respective rights and obligations
regarding the relocation of the described production facilities, with such rights and
obligations to bind the parties hereto, and their respective heirs, successors and assigns.
In consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:
1. Well Operation Area. The Doris #1 Well shall be buffered from the surface
development of the Property by an area (the dimensions and approximate square footage of
each are shown on the Subdivision Plat) in which FR shall have the right to conduct
operations associated with such well ("Well Operation Area"), all as shown more particularly
EXHIBIT
15c
on the Subdivision Plat). Surface Owner shall not locate any buildings, barns, sheds, fences,
corrals, or other structures within the Well Operation Area. Within such area, FR shall be
authorized to conduct all oil and gas operations as may be permitted under the Lease.
2. Production Facility Site. All production storage tanks, separators, dehydrators,
treaters, and meters associated with the Doris #1 Well shall be located within that certain
tract of land situated in the northwest corner of the Development, referred to herein as the
Production Facility Site, all as shown more specifically on the Subdivision Plat. FR shall
have the discretion to use the area within such site as it may determine to be most beneficial
to FR, provided, however, that none of the above-described equipment shall be located any
further south or east of that equipment currently located within the site. Surface Owner shall
similarly not locate any buildings, barns, sheds, fences, corrals, or other structures within the
Production Facility Site, but shall nevertheless continue to have the right of ingress and
egress through such site on existing or relocated access roads.
3. Batteries and Equipment. FR shall have the right to locate, build, repair and maintain
tanks, separators, dehydrators, meters, compressors and other equipment reasonably
appropriate for the operation and production of the Doris #1 Well only within the Production
Facility Site as described above. With respect to FR's equipment and facilities other than
flowline and the supply line:
(a) FR shall install and maintain, at its sole discretion, cost and expense, all
fences around the Doris #1 Well, provided, however, that all other areas within the Well
Operation Area shall remain accessible to Surface Owner (for landscaping, farming, and
other use as provided in subparagraph (d), below), on a non-exclusive basis, subject to FR's
operation rights under this Agreement and the Lease;
(b) FR shall install and maintain, at its sole discretion, cost and expense, all gates
and locks necessary for the security of any wells or other facilities on the Property;
(c) FR shall paint all production facilities associated with the wells, including
wellhead guards, with paint of a type and color approved by the COGCC. FR shall promptly
repaint such facilities in the event of any graffiti or other defacement and shall otherwise
make reasonable efforts to keep its Well Operation Areas and Production Facility Site free
and clear of trash, weeds, and debris; and
(d) Surface Owner may install and maintain, at its sole discretion, cost and
expense, any landscaping around any wells or facilities on the Property, provided, however,
that (i) such landscaping shall not inhibit FR's access or operations with respect thereto, and
(ii) FR shall not be liable for any damage or destruction of such landscaping within the Well
Operation Area, Production Facility Site or within any easements containing flowlines or
supply lines belonging to FR, except for damages to growing crops as provided by the Lease.
4. Relocation Payment. Surface Owner shall pay FR the sum of Four Thousand Five
Hundred and no/100 Dollars (US$4,500.00) as an advance estimated payment in connection
with the relocation of certain production facilities associated with the Doris #1 Well as
described herein (the "Relocation Payment"). Such payment shall be made by Surface
Owner and received by FR prior to the commencement of any relocation activities by FR
hereunder. Such payment is estimated to cover the actual costs of such relocation work and
shall be subject to re-adjustment following the completion of such work in accordance with
the provisions of Section 7, below.
5. Work Items Subject to Relocation Payment. The Relocation Payment is an estimated
payment payable by Surface Owner to FR prior to the commencement of any relocation work
hereunder. The payment shall be used only for reimbursement of FR's actual out-of-pocket
expenses incurred with respect to third-parties in connection with the relocation operations,
2
including but not necessarily limited to, contractor expense in removing the existing flowline
and gas supply line, cost of new flowline and gas supply line pipe, installation expense of
new flowline and supply line, roustabout work in connection with connecting the new
flowline and supply line to the wellhead and production facilities, signs marking the new
location of such lines, reclamation expenses associated with removal and installation
operations, and surveyor expenses. Notwithstanding the foregoing, the Relocation Payment
shall not be used for FR's (or any contractor's) insurance expenses, administrative overhead,
or any other expense not directly associated with the relocation work described in this
Agreement.
6. Relocation of Production Facilities. Upon FR's receipt of the Relocation Payment,
FR shall undertake to relocate (or cause the relocation of) the flowline and supply line
associated with the Doris #1 Well in and along the Oil and Gas Flowline Easements
established therefor on the Property as shown more specifically on the Subdivision Plat.
All of the easements established by the Subdivision Plat are non-exclusive easements, except
those identified solely as oil & gas flowline easements which shall be utilized exclusively for
oil and gas purposes. Any other non-exclusive easement located adjacent to a flowline
easement (including but not limited to utility easements) may be used by FR as a
construction easement with respect to the installation and/or replacement, repair, etc. of any
flowline and/or supply line. A similar and reciprocal right shall exist with respect to other
users of the non-exclusive easements.
FR shall have the right, at its cost and expense, to subsequently repair and/or replace any of
the flowlines or supply lines relocated pursuant to this Agreement; provided, however, that
any such replacement shall be within the easements provided by the Subdivision Plat. All
flowlines and supply lines shall be located at a depth of approximately 48 inches from the
surface. Surface Owner shall maintain a minimum of 48 inches and not more than 72 inches
of cover over all flowlines during any of Surface Owner's operations. Should Surface Owner
fail to maintain the specified amount of soil cover over any of the flowlines located on the
Property, Surface Owner shall request and pay FR to raise or lower the flowline(s)
accordingly.
7. Adjustment of Relocation Payment. All costs properly attributable to the relocation
operations described herein shall be itemized by FR and furnished to Surface Owner within
90 days following completion of such operations. Detailed information relating to any
itemized account shall be provided upon request in order to support such itemization. If the
costs of such relocation are less than the Relocation Payment, FR shall include a check made
payable to Surface Owner for the difference together with the itemized bill. If the costs of
relocation are greater than the Relocation Payment, FR shall include a statement for the
difference together with the itemized bill (which statement shall be due and payable no later
than 30 days following the delivery thereof); provided, however, that FR shall notify Surface
Owner as soon as practicable if such costs exceed the Relocation Payment.
8. Access. FR shall, at all times, have access to the Doris #1 Well and the Production
Facility Site via the rights-of-way and access roads shown on the Subdivision Plat. Any
roads built or improved by Surface Owner, at its expense, shall be maintained by Surface
Owner, and any roads built or improved by FR shall be maintained by FR. Any damage
caused by one party to the roads built or improved by the other shall be promptly repaired by
the party causing such damage.
9. Notice of Future Operations. FR shall provide such prior written notice to Surface
Owner of any proposed reworking, fracturing, deepening, drilling, or other operation on the
Doris #1 Well or any additional well that may be drilled on the Property under the Lease as
may be required by the COGCC. Regardless of the foregoing notice requirements, FR shall
have immediate access in the event of an emergency.
3
Each required notification of operations shall describe the following:
(a) the proposed starting date of the proposed activity;
(b) the proposed operations to be performed at the site;
(c) an approximate summary of the on-site equipment to be utilized; and
(d) the approximate duration of the proposed activities.
Not less than five working days prior to FR's mobilization on the Property, either
party may request an on-site meeting. The purpose of the meeting shall be to inform Surface
Owner of the expected activity and to coordinate site access, hazards, barricades, restoration
or any other issues that affect the use of and the safety of Surface Owner's development.
10. Diligent Operations. FR shall diligently pursue each and every drilling, workover,
fracturing, deepening, plugging, reclamation or other oil and gas operation conducted on the
Property so as to minimize the total time period involved and to avoid rig relocations or
startup during the course of each such operation.
11. Governmental Proceedings. So long as FR's position with respect to any matter
pending before an agency or governmental entity is consistent with its rights and obligations
under this Agreement and the Lease, Surface Owner shall not oppose FR in any hearing or
proceeding conducted by such agency or governmental relating to FR's operations on the
Property, including proposed drilling, workover, well deepening, and recompletion
operations. FR shall not protest or object to any PUD application, rezoning, or other
proceeding proposed by Surface Owner with respect to the Property so long as such proposal
recognizes and is made subject to this Agreement.
12. No Amendment of Lease. This Agreement is not intended to modify, alter or amend
any of the terms of the Lease except those relating to surface use specifically in connection
with the Doris #1 Well. All other terms and conditions of the Lease shall remain as stated
therein.
13. Representations. Each party represents that it has the full right and authority to enter
into this Agreement. FR represents that it is the Operator of the Doris #1 Well and has the
right to relocate the facilities described herein and bind itself and its working interest
partners, if any, to the surface use and development restrictions contained herein.
14. Successors. The terms, covenants and conditions hereof shall bind and inure to the
benefit of the parties hereto and their respective heirs, successors and assigns.
15. Term. This Agreement shall remain in full force and effect until FR's leasehold estate
expires or is terminated, and FR has plugged and abandoned all wells owned all or in part by
FR and complied with the requirements of the Lease pertaining to removal of equipment,
reclamation, and cleanup, at which time this Agreement shall terminate.
16. Notices. Any notice or other communication required or permitted of a party under
this Agreement shall be sufficient if deposited in the U.S. mail, postage prepaid, addressed to
the other at their respective address first set forth above. For purposes of simplifying the
notification process, the parties hereto designate Don Buxman as their agent to receive all
such notifications from FR.
17. Recording. This Agreement, together with any and all subsequent amendments
hereto, or a memorandum thereof, may be recorded by any of the parties hereto who shall
4
thereupon provide the other parties with a copy showing the recording information as soon as
practicable thereafter.
18. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or
the breach thereof, shall be resolved by arbitration conducted in Greeley, Colorado and shall
be administered by the American Arbitration Association under its commercial rules, and
judgment on the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. The party or parties prevailing in such proceeding shall be awarded all
of its reasonable costs and expenses relating thereto, including attorneys' fees.
19. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Colorado, without reference to its conflict of laws provisions.
20. Entire Agreement. This Agreement shall create no rights in any third parties,but sets
forth the entire understanding among the parties hereto regarding the matters addressed
herein, and supersedes any previous communications, declarations, representations, notices
or agreements, whether written or oral. This Agreement shall not be amended except by
written document signed by all parties.
The parties have executed this Agreement on the day and year first above written.
FOUNTAINHEAD RESOURCES, LTD.,
a Colorado limited liability company
By:
Manager
HAROLD C. BUXMAN DORIS F. BUXMAN
DON BUXMAN LISA BUXMAN
ACKNOWLEDGMENTS
STATE OF COLORADO )
ss.
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this day of
, 2002,by David A. Gottenborg, as Manager of Fountainhead Resources,
Ltd., a Colorado limited liability company.
Witness my hand and official seal.
My commission expires:
Notary Public
5
i\ /^e
STATE OF COLORADO )
ss.
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this day of
, 2002,by Harold C. Buxman and Doris F. Buxman.
Witness my hand and official seal.
My commission expires:
Notary Public
STATE OF COLORADO )
ss.
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this day of
, 2002, by Don Buxman and Lisa Buxman.
Witness my hand and official seal.
My commission expires:
Notary Public
6
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