HomeMy WebLinkAbout20052487.tiff _ Weld County Planning Department
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_' EXHIBIT
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2005-2487 3
JUN-29-2005 WED 05 11 PM KERR-MCGEE FAX NO. 303 296 9523 P. 02
• KERR-MCGEE ROCKY MOUNTAIN CORPORATION
1999 9ROAOMAV•SUITE 360D•DENVER,COLORADO 60202
June 29, 2005 PHONE.F301/296-3600
03rz 6-360
VIA FACSIMILE AND LS. MAIL
Weld County Planning Commission
Sheri Lockman,Planner
Re: Minor Subdivision Final Plat
Owl Creek Estates
Orlando Ltd. Liability Company, Applicant
Township 6 North, Range 64 West of the 6th P.M.
Lot B RE-2106: Part of Section 16: S W/E (the "Property")
Weld County, Colorado
Dear Weld County Planning Commission and Ms. Lockman,
• The purpose of this letter is to inform you that Kerr-McGee's oil and gas rights may be
adversely affected by the Owl Creek Estates development currently proposed by Orlando Ltd.
Liability Company. It is my understanding that an initial public hearing on Orlando Ltd. Liability
application for zoning and preliminary plat approval is scheduled for Monday,July 5,2005, at 1:30
p.m.
Kerr-McGee owns 100%of the oil and gas leasehold estate as to all depths in the Property.
This real property interest, which has been recorded, entitles Kerr-McGee to produce oil and gas
from these lands. To this end, Kerr-McGee currently operates two Codell wells, the Howard State
# I and the Owl Creek State # 10-16, both located in the W/2 SE/4 of Section 16, Township 6N,
Range 64W. Kerr-McGee also has the legal right to drill future wells on the Property in
accordance with Colorado Oil and Gas Conservation Commission Rule 3I8A and other applicable
law. Kerr-McGee believes that the oil and gas resources underlying the Property have significant
value and, therefore, is concerned about any surface use or plan of use that would restrict or
preclude the use and enjoyment of these rights.
Kerr-McGee previously entered into a surface use agreement dated March 9,2001, with the
previous owner, but since then, that surface use agreement has expired. Kerr-McGee has been
working with Orlando Ltd. Liability Company and has begun discussions regarding a new surface
use agreement for this development. Although it is crucial that an agreement be in place prior to
the County's approval of the developer's application,as of this date no agreement has been reached
and no surface use agreement with Orlando Ltd. Liability Company relating to Kerr-McGee's right
• to explore for and produce oil and gas in Section 16, T6N, R64W, is in place.
EXHIBIT
�6
JUN-29-2005 WED 65; 11 PM KERR-MCGEE FAX NO. 303 296 9523 P. 03
•
Weld County Planning Commission
c/o Sheri Lockman
June 29, 2005
Page 2
For these reasons, Kerr-McGee objects to any future plat approval or surface development
that fails to fully recognize and accommodate Kerr-McGee's access to, and utilization of, its
valuable property rights in Section 16, T6N, R64W. Kerr-McGee requests that the County require
an executed surface use agreement between the surface owner and the mineral owners prior to final
plat approval as a condition of this application. Moreover, any future plans should incorporate and
designate those lands to be set aside for mineral development and expressly address what measures
will be taken to protect Kerr-McGee's current and future wells, pipelines, gathering lines and
related oil and gas facilities and equipment. There are two points of contention on the Owl Creek
Estate Plat. First Kerr-McGee requires that the applicant designate a portion of Lots 6 and 7 as a
"no build" area to protect Kerr-McGee"s future oil and gas operations area. Secondly, the access
road, "Owl Creek Lane", does not meet the required standards for oil servicing equipment to be
able to withstand 104,000 pounds and 26,000 pounds per axle.
• Please contact Terry Enright at 720-264-2642 if you have any questions or comments
about this matter, Kerr-McGee hopes to conclude a mutually acceptable surface use agreement
with the surface owner of the Property and looks forward to cooperating with the County to
accomplish its land use planning goals.
Sincerely,
cGec cy untain Corporation
James P. as
�r of Land Denver Basin
cc: Ed On, Orlando LW. Liability Company (by facsimile and U.S. mail)
Terry D. Enright—Kerr-McGee Rocky Mountain Corporation
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