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Home My WebLink About840006.tiff AR1975156 RESOLUTION RE: APPROVE REQUEST OF PETROMAX ENERGY CORPORATION TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE AND AC- CEPTING OFFER TO LEASE MINERAL ACRES WHEREAS, the Board of County Commissioners of Weld County In o I Colorado, pursuant to Colorado statute and the Weld County Home o ' Rule Charter, is vested with the authority of administering the poi affairs of Weld County, Colorado, and U o WHEREAS, Petromax Energy Corporation has requested that o 'WWa the bidding .procedure be waived concerning oil and gas lease o S on the following described mineral acres: o 'h w Part of SE4SEa of Section 25, Township 6 North, o Range 66 West of the 6th P.M. , Weld County, Colorado o Containing .91 acres, more or less . WHEREAS , after review, the Board of County Commissioners found that Petromax Energy Corporation did show good cause co forfor waiving the bidding procedure on said oil and gas lease, z and N N WHEREAS , Petromax Energy Corporation is offering to lease o W the above described mineral acres, containing .91 mineral • acres, more or less, and Ln• w rx4 WHEREAS, said lease is to be for a period of three years .N z with a paid up lease of One Hundred and NO/100 Dollars ($100 .00) , a copy of said lease being attached hereto and. incorporated 'a herein by reference, and a4 C.) C4 WHEREAS, Weld County is desirous of accepting said offer N d from Petromax Energy Corporation to lease the above described m mineral acres. CD c n N 4444 NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado, that the request of Petromax Energy Corporation to waive the bidding procedure on an oil and gas lease, concerning the above described mineral acres, be, and hereby is, approved. g,6 773 C:; fSec - /2 `:,tiv - 840004 tEo2© a • Page 2 RE: WAIVE BIDDING PROCEDURE PETROMAX ENERGY. CORPORATION BE IT FURTHER RESOLVED by the Board that the offer of Petromax Energy Corporation, Building H-140 , 14 Inverness Drive East, Englewood, Colorado 80112, to lease the above Ln O described mineral acres for a period of three years with a o u paid up lease in the amount of One Hundred and. NO/100 Dollars ($100 .00) , be, and hereby is, accepted. NO The above and foregoing Resolution,was,, on motion duly a made and seconded, adopted by the following vote on the 18th c 3 day of July, A.D. , 1984. rz us DI Q PG ATTEST , BOARD OF COUNTY COMMISSIONERS O WELD COUNTY, COLORADO c4 r � MA/R6�A(.yur w We = erk• aid Recorder StAI n_ 6HG,tr.__ and "w c t "`ate ?Pixy„ } � Norman Carlson, Chairman ago U • xY, N H iepuby County erk Jaiquel e Joh.'n, Pro-Tem of APPROVED AS TO FORM: v era„,,,t, Gene R. Brantner a 2 OF SIGNING - AYE jLnty'2Z7 'h/4 'ey Chuck Carlson N min T. Martin 00 ri N 0 44 ICI WELD COUNTY, COIORADO OIL AND CAS LEASE B 1037 REC 01975156 07/24/84 16: 07 $0. 00 3/005 F 2026 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO THIS AGREEMENT made this 18thiay of July 1%4 between Weld County, Colorado, a political subdivision of the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Commis- sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and Petromax Energy Corporation Lessee, WITNESSETH: 1, lessor in consideration of One Hundred & no/100 Dollars ($ 100. 00 ), in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and producing oil, gas and other hydrocarbons, laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees, (subject to all applicable Weld County Zoning Regulations), the following tract of land with pny reversionary rights therein being situated in the County of Weld, State of Colorado, and described as follows: T6N-R66W . r Sec. 25 : . . .a strip of land 60 ' wide lying Northerly of and adjacent to a line drawn 50' Northerly of and parallel to the center line of the Denver, Laramie and Northwestern Railroad as the same is now located, surveyed and staked out over and across the SE/4 of the SE/4 of Section 25, Township 6N, Range 66W, of the 6th P.M. , said strip of land beginning on the Westerly line of said SE/4 of SE/4 and running Easterly to the Northwesterly line of the county road, as the and containing . 91 acres, more or less ( _91 net mineral acres). same now crosses the above- described property, and containin�c 91/10Oths of one_ r . mre or less. 2. Subject to the tither provisions herein aine , this lease snag be or a term of years rom this date (called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder, or drilling or reworking operations are conducted thereon. 18% 3. The royalties to be paid by Lessee are: (a) on oil, lflielOkliti of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub- stance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products 18% therefrom, the market value at the well ofJaic xlglttt of the gas so sold or used, provided that on gas sold at the 18% wells the royalty shall be acoottOlk of the amount realized from such sale; on sulfur the royalty shall be fifty cents (50(t) per long ton. Lessee shall have free use of oil , gas, coal, wood and water from said land, except water from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner. and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall continue in effect for successive periods of twelve (12) months each. 1. If operations for drilling are not coesnenced on said land at hereinafter provided, on or before ere year from thin date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lateen shell nay c, tends to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes h. e..n..,.,1.;,, of aa;e 104 e, tl,e aoma.e<itln., b, een...,ane„ e. by the $.eth e. i„eup..eitf of L..a.e„ th, sda of Tar('s) /, T ( •__ r_-._1\ u_l _hill cover--the privilege of deferring coarmencement of operations for drilling for a period of twelve (12) months. In like Laaaer and upon like payments or tenders annually the conetencement of operations for drilling ray be further deferred c.--successive periods of twelve (12) months each during the primary term. The payment or tender of rental heroin r..:f�. •..4 t„ ha, b,—.‘J, ;,, e,.,ie„c„ er eh.,ck at th.. „,ti,,,, of th,. Le.,m, and the d..rusiti„gef such cul,o„c,,, a, check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay mcnt as herein provided. The down cash payment is consideration for the lease according to its term and shall not he allocated as mere rental for a period, Lessee nay at any time execute and deliver to Lessor or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations ea to the ac,eagc su,,endcred, and thereafter tbe-renia-l-s—payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or rcleasee. This is a paid up lease, no rentals shall be due. 5. Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, • if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease 'shall terminate unless Lessee, on or before said date, shall re- sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals, shall continue in force just as though there had been no interruption in the rental payments. If during the last year of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the primary term the production thereof should cease during the last year of said term from any cause, no rental payment or operations are necessary in order to keep the lease in forge during the remainder of the primary term. If, at the expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this lease nevertheless shall continue in force as long as such drilling or reworking operations continue, or if, after the expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force if drilling or reworking operations are commenced within sixty (60) days after such cessation of production; if pro- duction is restored or additional production is discovered as a result of any such drilling or reworking operations, conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil , gas, other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had without cessation of such drilling or reworking operations for more than sixty (60) consecutive days. 6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty (40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent (10%) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com- bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more strata, and units so formed need not conform in size or area with th'e unit or units into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in • a 7X3 B 1037 REC 01975156 07/24/84 16 : 07 $0. 00 4/005 F 2027 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into other units, Lessee shall execute in writing and place of record an instrument or instruments identifying and describ- ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of oil or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be (Dnsigi red for all purposes, except the payment of royalties, as if such operations were on or such production wei`.e)from )r sq"h completion were on the land covered by this lease, whether or not the well or wells be located on VI )remises covered by this lease. in lieu of the royalties elsewhere herein specified, Lessor shall receive from a unr._ so fo .ned, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled in the particular unit involved. Should any unit as originally created hereunder con- tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of termination. 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands 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 of 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 al- located 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. 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of all obligation as to the acreage surrendered. Lessee shall have the right at any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are to be returned to original condition within time designated by Lessor. 9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease- hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli- gations with respect to the assigned portion or portions arising subsequent to the date of assignment. 10. 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, or if prevented by an act of God, of the public enemy, labor disputes, inability to obtain material, failure of transportation, or other cause beyond the control of Lessee. If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro- duce the oil., gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities or drilling or reworking operations are continued as elsewhere herein provided. 11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however, it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to be paid Lessor shall be reduced proportionately. 12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above described land without the written consent of the Lessor. 13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore- said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision herein in conflict therewith shall be inoperative and void. 14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators, successors and assigns. • 15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether it is signed by any of the other parties. IN WITNESS WHEREOF, this instrument is executed on the date first above written. • a BOARD OF.COUNTY COMMISSIONERS LD COUNTY, COLQRAQO • \ I \�►►� . ..�%ATTEST!' I( r '• r Weld County An a erk to iliesi.-.1-22-A2-4.7r.Th .: c t ,f^ PETROMAX EN Y CORPORATION LE SEE: ALI- By: Richard D. D'Es rada Vice President STATE OF COLORADO ) ) SS. COUNTY OF WELD The foregoing instrument was acknowledged before me this 1%.41/4 day of .TNI-Q 19n by R'1O,,0..a. O. b E-4v 4a.) ,ulee_. Prestc ex.*- os PeArm s>-Y vi CoY9ord.4wmv • My commission expires: 5-46:1S- Witness my hand and official seal. AO 1 s.. b,'A"�'� No ary u c , s R c.: $ aA- r� 4Q a • tint CbV�� .tooI • B 1037 REC 01975156 07/24/84 16: 07 $0.00 5/005 • F 2028 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO • Y O PETROMAX ENERGY CORPORATION 14 Inverness Drive East Building H Suite 140 Englewood, Colorado 80112 Phone (303) 799-9800 WEED �CCOUNTY MMISSl�pS July 9, 1984 D JUL 1 1 1984 Clerk to the Board of County Commissioners Weld County Centennial Center 915 - 10th Street GREELEY. COLO. Greeley, Colorado 80631 Attention: Jeannette Sears RE: Submittal to Lease for Oil and Gas T6N-R66W Section 25: A tract of land E/2SE/4 Monfort #25-1 Weld County, Colorado Gentlemen: Please accept this letter as a formal proposal to lease the following land owned by Weld County: " . . .a strip of land 60' wide lying Northerly of and adjacent to a line drawn 50' Northerly of and parallel to the center line of the Denver , Laramie and Northwestern Railroad as the same is now located, surveyed and staked out over and across the SE/4 of the SE/4 of Section 25, Township 6N, Range 66W, of the 6th P.M. , said strip of land beginning on the Westerly line of said SE/4 of SE/4 and running Easterly to the Northwesterly line of the county road, as the same now crosses the above-described property, and containing 91/100ths of one acre, more or less. " Said lands were conveyed to Weld County by Warranty Deed dated September 3rd, 1910 recorded in Book 337, Page 268 (copy enclosed) as given by Charles A. and Alice Carlson, former owners of the entire SE/4SE/4, Section 25, T6N-R66W, Weld County, Colorado. On February 12, 1984, Petromax Energy Corporation completed a Codell well, the Monfort #25-1, which spacing unit consists of the E/2SE/4 of Section 25, hence encompassing above-described property. Because of the split nature of S/2 of Section 25, a Clerk to the Board -2- July 9, 1984 survey and indepth title search was required in order to determine the ownership of various parcels, said process was very time consuming. At this time, Petromax Energy Corporation wishes to waive its priority of bidding on this acreage and hopes the Board will advise us at its earliest possible convenience of its decision. Should the Board approve our leasing proposal, we respectfully request the effective date of said lease to be the date of first production of the Monfort #25-1 Well which was February 14, 1984. Also at this time, we wish the Board to consider execution of the enclosed Stipulation to Acreage and Ratification of Pooling instrument in order to conform with the pooling regulations as determined by the State Oil and Gas Conservation Commission concerning the Monfort #25-1 Well. Should you have any questions, or require further information, please do not hesitate to contact the undersigned. Very truly yours, Sandra M. 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Ilse sal i.tyet/ o the hr.! sari -m tit. lerum...rl y6�1.t bound' amt ..d.' il...dal awl l:'a - Y Jw d1i1 •. - • -t �I4ai.Iridlied Hdii.td is Hartle*4/ ' 'S.. ..1 Lf, ;.....4,-.14-..4-e-••:-- S • s'1.4- 1 • `. ` . Cs-c.L' �ih Ca si t c • fist i wet I +• 4 �' C04tiRA I • soh i , ^ 1 !gyp. • •- a Notary ruble it, sal foe ill, t i _. 1,ht ue State ah.is,�Lrd<.m May.,certify that xi Lot-n.4 i..-%..- ..44.-AL; .4.-w / .� il' j .t b'�}in«.allt Lanai map he tie it-.t.v .1..e halta..'te tC.Juaithad 10 the ''• I Hello