HomeMy WebLinkAbout20043162.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRES - KERR-MCGEE
ROCKY MOUNTAIN CORPORATION
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,Kerr-McGee Rocky Mountain Corporation, 1999 Broadway,Suite 3600, Denver,
Colorado 80202, has requested that the bidding procedure be waived according to the policy as set
forth in the Weld County Code for parcels less than five acres, on the following described mineral
acres:
A strip of land lying in the NE1/4 NE1/4 of Section 3,
Township 4 North, Range 67 West of the 6th P.M.,
Weld County, Colorado, and
WHEREAS,said parcel is more fully described in ExhibitA of the Weld County Oil and Gas
Lease(Small Tract),a copy of which is attached hereto and incorporated hereby by reference,and
WHEREAS, Kerr-McGee Rocky Mountain Corporation is offering to lease the above
described mineral acres, containing 0.53 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Kerr-McGee Rocky Mountain
Corporation in the amount of TWO HUNDRED TEN AND NO/100 DOLLARS ($210.00), is
acceptable, with the further terms and conditions being as stated in said Oil and Gas Lease.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County,Colorado,that the request of Kerr-McGee Rocky Mountain Corporation,to waive the bidding
procedure on an Oil and Gas Lease concerning the above described mineral acres,be,and hereby
is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Kerr-McGee Rocky Mountain
Corporation to lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
2004-3162
LE0012
('g ; 0/1
WAIVE BID PROCEDURE - KERR-MCGEE ROCKY MOUNTAIN CORPORATION
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 1st day of November, A.D., 2004.
BOARD OF COUNTY COMMISSIONERS
O
�q W SCAT Y O Z
a• MRobert� D. Masden, Chair
Clerk to the B and
1861 - l �--.�
� ' William H. •rke, Pro-Tem
O� epU Clerk to the Board w!
M eile
y ED AS TO (C)
David
fl ong '
County A orney
Glen Vaad
Date of signature: a
2004-3162
LE0012
/j WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT,made and entered into this 19th day of October 20 , by and between
WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the Board
of County Commissioners of the County of Weld, 915 10th Street, P.O. Box 758, Greeley, CO 80632,
hereinafter called Lessor, and:
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600, Denver, Colorado 80202
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$ 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:
Section 3 Township 4 North, Range 67 West of the 6th P.M., Weld County, Colorado:
see the attached Exhibit "A"
and containing •53 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 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 expiration of the
primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled
therewith but Lessee is then engaged in drilling or re-working operations thereon, then 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 well and the beginning of operations for the drilling
of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith,the production
thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee
commences additional drilling or re-working operations within ninety (90) days from date of cessation of
production or from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of
such operations; at or after the expiration of the primary term of this lease, this lease shall continue in force
so long as oil or gas is produced from the leased premises or on acreage pooled therewith.
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.
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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 placed
on said premises, including the right to draw and remove casing.
10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change
in ownership of Lessor's interest(by assignment or otherwise)shall be binding on Lessee until Lessee has been
furnished with notice, consisting of certified copies of all recorded instruments or documents and other
information necessary to establish a complete chain of record title from Lessor, and then only with respect to
payment thereafter made. No other kind of notice, whether actual or 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 leasehold owner.
11. Lessee, at its option, is hereby given the right and power at any time and from time to time
as a recurring right, either before or after production, as to all or any part of the land described herein and as
to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas,
or separately for the production or either, when in Lessee's judgment it is 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 or gas may be reformed to exclude
such non-producing formations. The forming or reforming of any unit 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
AIM 11111 IIII' II'I'l1 IIII 11111 III'll III IIII' II'I IIII M:\CTS1CTBFORMS1Fooilgas.wpd
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Oil and Gas Lease - Small Tract
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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.
13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow 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 lands in the
event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof.
14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions,
including the defense of such claims or actions, based upon or arising out of damage or injury, 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.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof
including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and gas
operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease
as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any such default
or failure, Lessor shall, before making any such cancellation, send to Lessee by certified mail,to the post office
address of said lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or
default, specifying the same, stating that if within thirty(30) days from the date of mailing said notice, Lessee
shall correct such failure or default, no cancellation will be made. If such failure or default is not corrected with
thirty(30)days after the mailing of such notice, and if Lessee does not request a hearing on such notice within
thirty(30) days, this lease will terminate and be canceled by operation of the paragraph without further action
by Lessor, or further notice to Lessee.
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.
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Oil and Gas Lease - Small Tract
Page 4
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.
41Ml .
E La BOARD OF COUNTY COMMISSIONERS
GG 1/ �� //� q W LD COUNTY, COLORADO
/6�7Yfir/1/i�� �/�,yA.Jr-� Chair, Board of County Commissioners
1' (C'W i ,Co Clerk to the Board Robert D. Masden NOV 0 1 2004
Cz/ /By:
Deputy Clerk to the Board <---
LESSEE: Ke Gee Ro y Mounts n Corporation 7
`
James /4ason
Attorney-in-Fact
TE OF COLORADO ) e_ Co.----/-71-ar--e-/s-e,
ss
COUNTY OF )
The foregoing instrumen acknowledged before me this ,
20
Witness my hand and official seal.
Notary Public
My Co sion Expires: \
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M:1CTBICTBFORMSIFooi Igas.wpd
(Revised 11/2000)
STATE OF COLORADO )
) ss
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this 19th day of October
2004, by James. P. Wason, Attorney-in-Fact of Kerr-McGee Rocky Mountain Corporation, a
Delaware corporation, on behalf of the corporation.
Witness my hand and official seal. 014
}V\\ C�►l/E_/;t's'TA j`r, Notary Puc 1
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II'IIII11IIiiiSi IIt\1 12:Sie a Moreno Clerk&Re
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601 6R
Exhibit "A"
Attached to and made a part of that certain Weld County Oil and Gas Lease
dated October 19, 2004 between Weld County, Colorado, a political subdivision
as lessor and Kerr-McGee Rocky Mountain Corporation, as lessee.
Township 4 North, Range 67 West, 6th P.M.
Section 3: That portion of the NE/4NE/4NE/4 of Section 3 in the following
description contained in Book 114, Page 491:
Commencing at the Northeast corner of the Northeast quarter of
Section 3; thence running West on the North line of said quarter
Section 255 feet to a point; thence in a Southerly direction 102 feet
to a point about 250 feet West of the East line of said quarter
Section, thence in a Southeasterly direction 250 feet to a point on
the East line of said quarter Section 190 feet South of the North
East corner of said quarter Section; thence North on the said East
line to the place of beginning. Being the same parcel of land in the
Northeast corner of said quarter Section now outside the present
fence located upon said land at said point (as of June 1, 1896);
less and except the following parcel described in a Quit Claim Deed
dated September 8, 1971, recorded in Book 653, Reception No.
1575026:
Beginning at a point on the southerly property line from which the
NE Corner of Section 3, bears North 26° 13' East a distance of
175.7 feet; Thence South 68° 07 30" E., along the southerly
property line, a distance of 86.7 feet to the E. line of Section 3;
Thence North 0° 51' 30" W., along the E. line of Section 3, a
distance of 790.0 [sic.] feet to the NE Corner of Section 3; Thence
North 89° 35' 30" W., along the N. line of Section 3, a distance of
80.0 feet; Thence S. 0°51' 30" E., a distance of 158.3 feet, more or
less, to the point of beginning, containing 0.32 acres, more or less;
I IIIIII VIII VIII IIIIIII IIII 11111101011114,1!III Ilil IIII
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KERR-MCGEE ROCKY MOUNTAIN CORPORATION
REFERENCE • REFERENCE COMMENT GROSS DISCOUNT NET
NUMBER TYPE DATE AMOUNT AMOUNT AMOUNT
041019 I 10/19/04 LOVELAND 8-3 210 . 00 . 00 210 . 00
CHECK TOTALS 068004 210 . 00 . 00 210 . 00
*TYPE(I)INVOICE,(C)CREDIT MEMO DETACH BEFORE DEPOSITING
67-1/532
K KERR-McGEE ROCKY MOUNTAIN CORPORATION Waohovle Bank,N.A.
1999 BROADWAY,SUITE 3600 Greenville,South Carolina
DENVER,CO 80202 In Cooperation With 8 Payable If Desired at
Wells Fargo Bank,N.A.
(303)296-3600 4759-611106
DATE CHECK
IDENUMBER 10/22/04 NTICATLON O68OO4' $ ******21Q . 00*4
WWTLLWOl144Hundred TEN Dollars and 00 Cents
PAY Weld County, ColoradoT RDER p O Box 758
ORDER lrr34)(tjdL
Greeley CO 80632
OF
0 200 L0680040 411' i:0532000 Vii: 5404 633870
DETACH BEFORE DEPOSITING
SKERR-MCGEE ROCKY AMOUNTAIN CORPORATION
1999 BROADWAY,SUITE 3600• DENVER, DO 80202
PHONE: 303-236-3600
FAX: 303-296-3601
October 22, 2004
Mr. Bruce Barker
Weld County Attorney
P.O. Box 758
Greeley, CO 80632
Re: Oil and Gas lease
Township 4 North, Range 67 West, Section 3:NE/4
Weld County, Colorado
Dear Mr. Barker:
Attached is a completed copy of the Weld County Oil and Gas Lease Form for your
processing. Also enclosed is check# 068004 for$210 for lease bonus and processing charges.
Thank you for your help in this matter. My telephone number is (720) 264-2630 is you have any
questions.
Sincerely,
KERR-McGEE//ROCKY MOUNTAIN CORPORATION
Melvin tahl
Landman
Enclosure
® [ flVE �
OCT25am
WELD COUNTY
ATTORNEY'S OFFICE
j oV1 a
' a WELD COUNTY ATTORNEY'S OFFICE
915 TENTH STREET
P.O. BOX 758
GREELEY, CO 80632
WEBSITE: www.co.weld.co.us
PHONE: (970) 336-7235
FAX: (970) 352-0242
COLORADO
October 14, 2004
Mr. Melvin R. Stahl, Landman
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, CO 80202
Re: Requested Lease for .53 Acre Tract in NE'/4
of Section 3-4-667
Dear Mr. Stahl:
This letter is in response to your letter of October 1, 2004, offering on behalf of Kerr-McGee
Rocky Mountain Corporation to lease a tract of land being .53acres in size and located in the
NE'/4 of Section 3-4-67.
Enclosed is one of Weld County's Small Tract Oil and Gas Lease forms. Please execute the
form and it, along with the appropriate payment, to me at: P.O. Box 758, 915 10th Street, Greeley,
CO 80632. I will then see that it is placed on the Board of County Commissioners' Agenda for
approval.
Please feel free to call me at (970) 356-4000, ext. 4390, if you have uestions.
f Sin ely,
ceT. ker
Weld County Attorney
Enclosures
pc: Clerk to the Board
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