HomeMy WebLinkAbout20051730.tiff RESOLUTION
RE: APPROVE RATIFICATION OF DECLARATION OF POOLING - CFG ENERGY, 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, Weld County is the holder of an Oil and Gas Lease with CFG Energy, Inc.,
concerning certain mineral acres located in the SW1/4SW1/4 of Section 4, Township 5 North,
Range 61 West of the 6th P.M., Weld County, Colorado, and
WHEREAS, the Board has been presented with a Ratification of a Declaration of Pooling
concerning said mineral acres, and
WHEREAS, after review, the Board deems it advisable to approve said Ratification,
retroactive to March 30, 2005, and
NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County,Colorado,that the Ratification of the Declaration of Pooling concerning the above mentioned
mineral acres be, and hereby is, approved.
The above and foregoing Resolution was,on motion duly made and seconded,adopted by
the following vote on the 13th day of June, A.D., 2005, nunc pro tunc March 30, 2005.
BOARD OF COUNTY COMMISSIONERS
ftWELD COUNTY, COLORADO
% William H. rke, Chaire Board
Geile, Pro- m
Deputy Clerk to the Boar
D 'd E. Long
AP D AS •
Robert D. Masden
n y Atto ey
Glenn Vaa
Date of signature: l e-
2005-1730
LE0212
a )
a
resTO: Board of County Commissioners
FROM: Lee D. Morrison, Assistant Weld County Attorney
WI IBCDATE: June 6, 2005
gr — JcO2_/
RE: Pooling Agreement
COLORADO
Mr. Bill Crews has requested that the County enter into the attached Pooling Agreement. The
County lease recorded January 12, 2004 already includes a pooling clause. However, Mr. Crews
is concerned that the terms of the existing pooling clause are too narrow since it suggests that
pooling is appropriate only to comply with a spacing Order or rule. That is not technically the
case here. However, there does not appear to be any reason to decline to pool on a narrow
technical distinction. I also am not aware of any economic reason not to pool.
Therefore, I recommend approval of the Ratification of Pooling.
(7— f c)-1 /
Lee D. Momson
Assistant Weld County Attorney
CREWS & ZEREN, LLC
May 16, 2005 Petroleum Land Consultants
P.O. Box 336337
Greeley, CO 80633
Lee Morrison (970) 351-0733
Assistant County Attorney Fax(303)484-2110
Weld County info®crews-zeren.com
1015 10th Street, 3rd. Floor
Greeley, CO 80631
Re: Ratification of Pooling
Dear Lee:
This is to request that the Board of County Commissioners ratify the attached
Declaration of Pooling which pools the S'%SW'% of Section 4, Township 5 North, Range
61 West, as a unit for production of oil and gas.
The pooling clause in the County lease form is perhaps not quite broad enough to
permit pooling in the absence of spacing. CFG Energy, Inc. has drilled and completed
the Pronghorn 14-4 well, in the SW%SW% of Section 4, as a producer of both oil and
gas from the Niobrara formation in . The Niobrara formation in the Wattenberg field to
the west is spaced on 80-acre units, so this pooling is consistent with the nearest unit
size from the same formation.
By pooling as a lay-down, the County will receive proceeds from this well from first
production (when perhaps the provisions of the Tabor Amendment are affecting County
revenues) and will be assured of a revenue stream at the earliest date of production in
the section. Dennis Grotheer as Trustee of the Dennis W. Grotheer Living Trust, the
other mineral owner in the unit, concurs with the pooling as CFG et al. have done it.
Please let me know if you need any other information. Thanks for taking this matter
before the Board to ratify the pooling.
Regards,
William G. "Bill" Crews, CPL
Agent for CFG Energy, Inc.
WGC/mm
See accompanying copy of Declaration of Pooling
1111111 11111 11111 110 10111 IIIINI 11111 III 111111111111
3276054 04/11/2005 12:15P Weld County, CO
1 of 3 R 16.00 D 0.00 Steve Moreno Clerk& Recorder
DECLARATION OF POOLING
054
KNOW ALL MEN BY THESE PRESENTS:
1. CFG Energy, Inc., Albert E. Yetter, RAAM Production, LLC, Ronald E. Yetter and
Tonie E. Yetter are the owners of the oil and gas leases ("Leases") set forth on Exhibit
A hereto covering the S'ASW% of Section 4, Township 5 North, Range 61 West, 6th
P.M., Weld County, Colorado. Each of the Leases contains provisions authorizing the
Lessee to unitize or pool the Leases and the lands covered thereby, in whole or in part,
in order to create an orderly well spacing pattern.
2. Acting under and by virtue of the pooling authority contained in the Leases, the
undersigned hereby pool, combine and designate the following lands (and the
leasehold, mineral and royalty rights thereunder) as a unit for the production of oil, gas
and associated liquid hydrocarbons.
Township 5 North. Range 61 West. 6th P.M.
Section 4: S%SW%
IN WITNESS WHEREOF, this instrument is executed as of this 30th day of March,
2005, but shall be effective for all purposes as of the earliest date of production from
the CFG Pronghom #14-4 well in the SW%SW%of said Section 4. This Declaration of
Pooling may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same document.
CFG ENERGY, INC. RAAM PRODUCTION, LLC.
�/r�.m By: / ee /1 (: By: .
Thomas B. Croke, Ill, President Ronald E. Yetter
_cc
Albert E. Yetter Ronald E. Yetter
`1JCneu'i'J4 2641TO
Tonie E. Yetter
(acknowledgments attached)
111110 11111111111111111111111111111111111111111111111
3276054 04/11/2005 12:15P Weld County, CO
2 of 3 R 16.00 D 0.00 Steve Moreno Clerk& Recorder
STATE OF COLORADO )
) ss.
COUNTY OF WELD
The foregoing instrument was acknowledged before me this 9n- day of March, 2005, by
Thomas B. Croke, Ill, as President of CFG Energy, Inc., a Colorado corporation, on behalf of
said corporation.
Witness my hand and official seal.
My commission expires: ;. n i1 - °o'o 8
4"..: '/,it ' = f
STATE OF COLORADO ) &Op'•;: ao
r. d• 134,•.t
•
COUNTY OF MORGAN )
) ss. 13
The foregoing instrument was acknowledged before me this L�day of a y r;,
2005, by Ronald E. Yetter, as Manager of RAAM Production, LLC, a Colorado limitied liability
company, and by Ronald E. Yetter and Tonie E. Vetter.
Witness my hand and official seal.
My commission expires: C, naAlt4,k
-13-,,70) Nota
RISTA BARBEFIrel
NOTARY PUBLIC
STATE OF COLORADO ) STATE OF COLORADO
) ss. MY COMMISSION EXPIRES 211412008
COUNTY OF LOGAN )
The foregoing instrument was acknowledged before me this 1 day of A? 1
2005, by Albert E. Vetter.
Witness my hand and official seal.
My commission expires: iSc4n
I3- dno2 Notary Public
CHRISTA BARBER
NOTARY PUBLIC
STATE OF COLORADO
MY COMMISSION EXPIRES 2i13.2C48
• 1111111 III1I IIIII IIII 111111111111111111 III 111111111 IIII
3276054 04/11/2005 12:15P Weld County, CO
3 of 3 R 16.00 0 0.00 Steve Moreno Clerk 8 Recorder
Exhibit A
Declaration of Pooling
S'YSW%-4-5n-61w
Lessor Lessee Description Date Rec.
Dennis W. Grotheer CFG Energy, Inc. Two. 5 North. Rae 61 West 11/18/2003 3127857
and Debra A. Grotheer Sec.4: SW%SW%
as Co-Trustees of the
Dennis W. Grotheer
Living Trust
Weld County, CO CFG Energy, Inc. Twp. 5 North. Roe 61 West 1/12/2004 3143332
Sec.4: SEY.SWY. 3146390
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