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HomeMy WebLinkAbout20260344 Resolution Approve Ratification Agreement for Two (2) Oil and Gas Leases (S1, T5N, R65W) and Authorize Chair to Sign — PDC Energy, Inc., a Wholly Owned Subsidiary of Chevron USA, 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, the Board has been presented with a Ratification Agreement for two (2) Oil and Gas Leases between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and PDC Energy, Inc., a wholly owned subsidiary of Chevron USA, Inc., with further terms and conditions being as stated in said ratification agreement, and Whereas, after review, the Board deems it advisable to approve said ratification agreement, a copy of which is attached hereto and incorporated herein by reference. Now, therefore, be it resolved by the Board of County Commissioners of Weld County, Colorado, that the Ratification Agreement for two (2) Oil and Gas Leases between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and PDC Energy, Inc., a wholly owned subsidiary of Chevron USA, Inc., be, and hereby is, approved. Be it further resolved by the Board that the Chair be, and hereby is, authorized to sign said ratification agreement. The Board of County Commissioners of Weld County, Colorado, approved the above and foregoing Resolution, on motion duly made and seconded, by the following vote on the 18th day of February, A.D., 2026: [Insert Resolution Attestation Block Post Meeting] 2026-0344 LE0186 LE0187 Chevron RECEIVED FEB 0 4 2025 WELD COUNTY COMMISSIONERS January 29, 2025 Board of Commissioners of the County of Weld P.O. Box 758 Greeley, Colorado 80632 RE: Oil and Gas Leases recorded @ Doc. 2408870, 2408871 (see enclosed) Gentlemen, PDC Energy, Inc, a wholly owned subsidiary of Chevron USA, Inc, is successor in interest to the Lessee under the above referenced leases and operates both the LDS 1W-314 and the LDS 1W-414 horizontal wells which embrace said leases. Although the leases have been HBP since 1994, neither lease has a primary term set forth in the provisions thereof. As we informed you back in 2015, our counsel has made the requirement that we ask the Lessor to ratify the leases. Chevron asks that the Board of Commissioners review the ratification document and if acceptable, kindly execute both originals and return one such to us in the enclosed envelope. Please keep the other for your records. Upon receipt of the duly executed Ratification, any royalty funds held in suspense will be released. Should you have any questions about the matter please contact the undersigned. Yours tr Philip ardson Phil.Shepardson@chevron.com 2026-0344 ( �) Chevron Rockies Business Unit 1099 18th Street,Suite 1500 O l S3 Denver,Colorado 80202 U�o ZA B LE O 1 �-1 RATIFICATION OF OIL AND GAS LEASE THIS AGREEMENT,effective as of the 29th day of January,2025 by and between Weld County,Colorado, a political subdivision of the State of Colorado,acting by and through the Board of Commissioners of the County of Weld,whose address is 915 10th St.Greeley,CO 80631,hereinafter called"Lessor",and PDC Energy,Inc.,a wholly owned subsidiary of Chevron USA, Inc., whose address is 1099 18th Street#1500 Denver, CO 80202, hereinafter called"Lessee", WITNESSETH: THAT WHEREAS,by Oil and Gas Lease dated September 14, 1994, recorded at Doc. #2408871,records of Weld County,Colorado, Weld County,Colorado, a political subdivision of the State of Colorado,acting by and through the Board of Commissioners of the County of Weld,leased,let and demised unto Snyder Oil Corporation,for oil and gas development and production purposes those lands more particularly described in said Oil and Gas Lease, and listed herebelow: Township 5 North,Range 65 West,6th P.M. Section 1: Beginning at the SE corner of the N2SE; thence West 1,118 feet; thence North 6 degrees 19 minutes West 702 feet;thence Northwesterly to the Southerly right of way of Colorado State Highway No 263; thence Northeasterly 400 feet more or less;thence Southeasterly to a point of on the East line of the N2SE;thence South 315'to the Point of Beginning. Weld County,Colorado,and, THAT WHEREAS,by Oil and Gas Lease dated September 14, 1994, recorded at Doc. #2408870,records of Weld County, Colorado, Weld County,Colorado, a political subdivision of the State of Colorado, acting by and through the Board of Commissioners of the County of Weld,leased,let and demised unto Snyder Oil Corporation,for oil and gas development and production purposes those lands more particularly described in said Oil and Gas Lease, and listed herebelow: Township 5 North,Range 65 West,6th P.M. Section 1: That portion of the N2SE beginning at a point on the East line of Section 1,315 feet North of the SE corner of the N2SE; thence North along the East line of Section 1 to its point of intersection with the right-of-way of Highway known as 8th St.Road,thence West along the South right-of-way of said Highway 820 feet;thence SE 1,082 feet to the Point of Beginning. Weld County,Colorado which Oil and Gas Leases herein incorporated by reference will hereinafter be referred to as"Said Leases";and WHEREAS,PDC Energy,Inc.,a wholly owned subsidiary of Chevron USA, Inc., is successor in interest to Snyder Oil Corporation,Lessee under Said Leases,and, For and in consideration of ten and more dollars($10.00+),the receipt and sufficiency of which is hereby acknowledged,the undersigned does hereby ratify, confirm, approve and adopt Said Leases and does hereby grant, lease, let and demise unto Lessee, its successors and assigns,all of the land described in Said Leases according and subject to the terms and for the uses and purposes set forth in Said Leases. Lessor hereby acknowledges full performance by Lessee of all of its obligations under Said Leases to this date and agrees that Said Leases are in full force and effect. Mai)-054 4-U/ IN WITNESS WHEREOF,Lessor has executed this Agreement this I day of FebvuCtly ,202K(Q Weld County,Colorado,a political subdivision of the State of Colorado,acting by and through the Board of Commissioners of the County of Weld )(1\--V STATE OF COLORADO COUNTY OF WELD The Nreping instrument was acknowledged ibefigeA me this ,___ day of FQbV.A(1� 2024 by C(SA"f aiA61(XS Caw/ �OGU'CI 6 un'1mt N LQ S , on behalf of Weld County, Colorado, a political subdivision of the §tate of Colorado,acting by and through the Board of Commissioners of the County of Weld, My commission expires: Q2 0/2 02 HM lM Vl� SEAL Notary Public HOUST N MARIE NOTARY PUBLICAGON STATE OF COLORADO NOTARY ID 20244035426 MY COMMISSION EXPIRES SEPTEMBER 20,2028 702 �o-03 (Vt' Hello