HomeMy WebLinkAbout20030272.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - 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 Administrative Manual for parcels less than five acres, on
the following described mineral acres:
A strip of land 30 feet in width off the entire east
side of the E1/2 NE1/4 of Section 34, Township 4
North, Range 66 West of the 6th P.M., Weld
County, Colorado
WHEREAS, Kerr-McGee Rocky Mountain Corporation is offering to lease the above
described mineral acres, containing 1.818 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 AND NO/100 DOLLARS ($200.00), is
acceptable, with the further terms and conditions being as stated in said Oil and Gas Lease, a
copy being attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the request of Kerr-McGee Rocky Mountain Corporation, to waive
the bidding procedure on an Oil and Gas Lease concerning the above described mineral acres,
be, and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Kerr-McGee Rocky
Mountain Corporation to lease mineral acres, as hereinabove stated, be, and hereby is,
accepted.
2003-0272
LE0229
c e ; kR, ci
WAIVE BID PROCEDURE - KERR-MCGEE ROCKY MOUNTAIN CORPORATION
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 29th day of January, A.D., 2003.
BO D OF COUNTY COMMISSIONERS
W EcO,1�ORADO
jetted ATTEST: p-))
n ',= avid E. Long, Chair
Weld County Clerk to the poard
` SobertD D asden, Pro-am
g BY: �• r
tr
Deputy Clerk to the Board i {
M. J. Geile
A9PROV AST / a7,
/ WILL erk
ty Attorney �(f�
Glenn Vaad
Date of signature: �/0
2003-0272
LE0229
1111
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3038055 031441 2003 1Q: Weld County,CO
1 of 8 R 31.04 D 0.00 Stave Moreno Clerk&Recorder
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT,made and entered into this 29th day of January ,20 03,by and
between WELD COUNTY,COLORADO,a political subdivision of the State of Colorado acting by and
through the Board of County Commissioners of the County of Weld,91510th Street,P.O.Box 758,Greeley,
CO 80632,hereinafter called Lessor,and:
Kerr-McGee Rocky Mountain Corporation, A Delaware corporation,
1999 Broadway, Suite 3600, Denver, Colorado 80202
hereinafter called Lessee.
200.00
WITNESSETH,that Lessor,for and in consideration of the sum of$ ,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:
A strip of land 30 feet in width off the entire east side of the E/2NE/4
Section 34 Township 4 North,Range 66 West of the 6th P.M.,Weld County,Colorado:
and containing 1.81jcres,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.
M:1CTBlCTBFORM SiFooilgas.wpd
(Revised 11!2000)
,2O03-0 -7a.
111031 1111111 INIIIIIIM1111101111111111I
ld County,CO
2 of 0 R 31.00 D 0.00 Steve Meoreno Clerk&Recorder
Oil and Gas Lease-Small Tract
Page 2
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 maybe 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 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
M:lCT8ICTBFORMStFooilgas.wpd
(Revised 11!20001
3038065 03/04/2003 10:46A Weld County,CO
3 of 6 R 31.00 D 0.00 Steve Moreno Clerk&Recorder
Oil and Gas Lease-Small Tract
Page 3
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 tease,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 mode 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.
M:1CTBICTBFORMSiFooilgas.wpd
(Revised 110000)
HUM 11111 1111111 1111111111 HI IIIIIII III 11111 III I II
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4 of 6 R 31.00 D 0.00 Steve Moreno Clerk&Recorder
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.
BOARD OF COUNTY COMMISSIONERS
WEVUNTY,COLORAD
i
ATTEST:
Davi .Long,Chair, O /2o4
Board of County Commissi ers
Weld County Clerk to B
261 ..to ate'
By;
Deputy Clerk top
LESSEE: r Mo'Ce- Rocky :untain Corporation
By:
James W Win, Attorney-in-Fact
STATE OF COLORADO
ss
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this-C1 1₹1'day of F Ai ,
202.
Witness my hand and official seal.
AL,4 •
Notary Public
My C!..--7 c Ea..�
'�►•s•;6(ig %C;...r?
OFCp1.�---
111OOMMINiO0 t t1N 092Ir2004
M:ICTBICTBFORMS1Fooilgas.wpd
(Revised 11/2000)
IIII11111111111111 1111111111 1111111111111111
3038055 p3/04/24IY1003 10:46A weld County,CO
5 of 6 R 31.00 D 0.00 Steve Moreno Clerk&
Recorder
RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE-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 Administrative Manual for parcels less than five acres,on
the following described mineral acres:
A strip of land 30 feet in width off the entire east
side of the E1/2 NE1/4 of Section 34,Township 4
North,Range 66 West of the 6th P.M.,Weld
County,Colorado
WHEREAS,Kerr-McGee Rocky Mountain Corporation is offering to lease the above
described mineral acres,containing 1.818 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 AND NO/100 DOLLARS($200.00),is
acceptable,with the further terns and conditions being as stated in said Oil and Gas Lease,a
copy being attached hereto and incorporated herein by reference.
NOW,THEREFORE,SE 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.
2003-0272
LE0229
Ce; C/9
r
I 111111 11111 1111111 111 111111111 11111 liii Illl
3038055 03/04/2003 10:46A Weld County,CO
6 of 6 R 31.00 D 0.00 Steve Moreno Clerk Recorder
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 29th day of January,A.D.,2003.
BO D OF COUNTY COMMISSIONERS
W OU�TY�C�0RADO
ATTEST:Lill �3 „;
avid E.Long,Chair
Weld County Clerk to the ,Aro
t,..r, XCUSED
overt D. asden,Pro- m
BY:
Deputy Clerk to the Boards .
M.J.Geile
9PPROVI AST / f✓1•''
Willis H.Jerk
ty Attorney
Glenn Vaad
Date of signature:
2003-0272
LE0229
Cos>) KERR-MCGEE ROCKY MOUNTAIN CORPORATION
1999 BROADWAY,SUITE 3600 • DENVER,COLORADO 80202
January 24, 2003 PHONE: 303-296-3600
FAX: 303-296-3601
Mr. Bruce Barker
Weld County Attorney
P.O. Box 758 r� `• .
Greeley, CO 80632 E , 'i ,
Re: Oil and Gas lease •'v JAN 2 7 20L
Township 4 North, Range 66 West, Section 34: NEW/4
{ 1-tWeld County, Colorado 8 en, LD COW;
( Aw ¢ t-ZNEY'S -
Dear Mr. Barker:
Attached are two copies of the completed Oil and Gas lease form for your processing.
Also enclosed is check# 052014 for $200 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
vY` � (Melvin Stah
Landman
Enclosure
Kik6 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
Q FAX: (970) 352-0242
COLORADO
January 13, 2003
Mr. Melvin R. Stahl, Landman
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, CO 80202
Re: Requested Lease for 1.818 Acre Tract in
NE'/4 of Section 34-4-66
Dear Mr. Stahl:
This letter is in response to your letter of January 9, 2003, offering on behalf of Kerr-McGee
Rocky Mountain Corporation to lease a tract of land being 1.818 acres in size and located in the
NE'/ of Section 34-4-66.
Enclosed are two originals of Weld County's Small Tract Oil and Gas Lease form. Please
execute these and send them, along with the appropriate payment, to me at: P.O. Box 758, 915
10th Street, Greeley, CO 80632. I will then see that they are placed on the Board of County
Commissioners' Agenda for approval.
Please feel free to call me at(970) 356-4000, ext. 4390:4you have questions.
Sin ely,%%
nice T. Barker
Weld County Attorney
Enclosures
pc: Clerk to the Board
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