HomeMy WebLinkAbout840012.tiff AR1969212
RESOLUTION
RE: APPROVE REQUEST OF GOLDEN BUCKEYE PETROLEUM CORPORATION TO
WAIVE BIDDING PROCEDURE CONCERNING AN OIL AND GAS LEASE
AND ACCEPTING OFFER TO LEASE MINERAL ACRES
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 , Golden Buckeye Petroleum Corporation has requested
that the bidding procedure be waived concerning an Oil and Gas
lease on the following described mineral acres:
Township 5 North, Range 64 West, 6th P .M.
Section 15: a tract of land situated in
the SWa , Weld County, Colorado
Said tract containing 7 . 07 Acres , more or less
WHEREAS , after review, the Board of County Commissioners
found that Golden Buckeye Petroleum Corporation did show good
cause for waiving the bidding procedure on said Oil and Gas
lease, and
WHEREAS , Golden Buckeye Petroleum Corporation is offering
to lease the above described mineral acres , containing 7 . 07
minerals acres , more or less , and
WHEREAS , said lease is to be for a period of three years
with a paid up lease of Seven Hundred Twenty-One and 14/100
Dollars ($721 . 14) , a copy of said lease being attached hereto
and incorporated herein by reference, and
WHEREAS , Weld County is desirous of accepting said offer
from Golden Buckeye Petroleum Corporation to lease the above de-
scribed mineral acres.
NOW, THEREFORE , BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the request of Golden
Buckeye Petroleum Corporation to waive the bidding procedure
on and Oil and Gas lease concerning the above described mineral
acres be, and hereby is , approved.
BE IT FURTHER RESOLVED by the Board that the offer of Golden
Buckeye Petroleum Corporation, 1064 Bannock Street, Denver,
B 1032 REC 01969212 06/04/84 16 : 10 $0 . 00 1/006
F 1197 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
2
84CCL2
Page 2
RE: WAIVE BIDDING PROCEDURE - GOLDEN BUCKEYE PETROLEUM CORP .
Colorado 80204 , to lease the above described mineral acres for
a period of three (3) years with a paid up lease in the amount
of Seven Hundred Twenty-One and 14/100 Dollars ($721 . 14) be, and
hereby is, accepted.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 9th day of
May, A.D. , 1984.
_, L`T7� BELDD OF COUNTY COMMISSIONERS
ATTEST: ,/? WELD COUNTY, COLORADO
W d Co 4 and Recorder —
a (} l wBoard , Norman Carlson, Chairman
YIv4 .
By., , v rely_,)," . L_ G.c"u_) EXCUSED
-Q p y County Clerk Jacqueline Johnson, Pro-Tem
APPROVED AS TO FORM:
C ene R. Brantner
09-Oa-412 0c -4 EXCUSED
County Attorney Chuck Carlson
�n T. Martin
J n T. Martin
B 1032 REC 01969212 06/04/84 16: 10 $0. 00 2/006
F 1198 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
WELD COUNTY, COLORADO OIL AND GAS LEASE
PAID UP
THIS AGREEMENT made this 9th day of May 1984, between Weld County, Colorado, a political subdivision of
the State of Colorado, by the Board of County 'Commissioners, for its respective interests, C/0 Board of County Commis-
sioners, Weld County Centennial Center, 915 10th Street, Greeley, Colorado 80631, Lessor (whether one or more), and
Golden Buckeye Petroleum Corporation Lessee, WITNESSETH:
1064 Bannock St., Denver, Colorado 80204
1. Lessor in consideration of • ten and more--- Dollars ($ 10.00 + ).
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 any reversionary rights
therein being situated in the County of Weld, State of Colorado, and described as follows:
See Exhibit "A" attached hereto and made a part hereof.
Wherever the term "one-eighth 1/8" appears in the ease, it s 1 y this reference be
amended to read "eighteen percent 18%". p, ,
and containing 7.07 acres, more or less ( 7.07 net mineral acres).
2. Subject to the other provisions herein contained, this lease shall be for a term of 3 years from 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.
3. The royalties to be paid by Lessee are: (a) on oil , one-eighth 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
therefrom, the market value at the well of one-eighth of the gas so sold or used, provided that on gas sold at the
wells the royalty shall be one-eighth of the amount realized from such sale; on sulfur the royalty shall be fifty
cents (50t) 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•yearfrom 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 $100.00 per well, and, if
such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner
and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this
lease shall continue in effect for successive periods of twelve (12) months each.
4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from
this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall
nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes
in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of
One and No/100 Dollar(s) ($ 1 .00 ) per net mineral acre, (herein called rental), which shall
cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like
manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred
for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein
referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or
check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay-
ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not
be allocated as mere rental for a period. Lessee may 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 as to the acreage surrendered, and thereafter
the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said
release or releases.
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 h&c' 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 force 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 neverthelessshall 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
B 1032 REC 01969212 06/04/84 16 : 10 $0. 00 3/006
F' 1199 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 considered for all purposes,
except the payment of royalties, as if such operations were on or such production were from or such completion were
on the land covered by this lease, whether or not the well or wells be located on the premises covered by this lease.
In lieu of the royalties elsewhere herein specified, Lessor shall receive from a unit so formed, 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.
B 1032 REC 01969212 06/04/84 16: 10 $0. 00 4/006
F 1200 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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. s -
BOARD OF COI}NTY :L!IMIS"TONERS
W LD COUN' COLORADO eit-ei. -
Ja¢ /7eline Johnson - EXCUSED
ATTEST? 11_wv�"�'Q.W/w�W��
�:v Chnr c Carl aon — FrUSED
Weld County C rk and ,8pord o
and Clerk;to, e it":
7 L G cJ
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c.„:: • LES
/ 111
STATE OF COLORADO )
COUNTY OF N ) SS.
Denver
The foregoing instrument was acknowledged before me this 1st day of June 1984, by
G. Walter Lunsford, Attorney-in-Fact, Golden Buckeye Petroleum Corporation
IaHI ,
My commission expires: Witness my hand and official seal.
4/3/88
x
of ry Public
1064 Bannock trbetd4-� '
Denver, CO 80774%
%urrrrrNr�urYd
B 1032 REC 01969212 06/04/84 16: 10 $0 . 00 5/006
F 1201 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
EXHIBIT "A"
This Exhibit "A" is attached to and by this reference made a part of
that certain PAID UP Oil and Gas Lease dated May 9, 1984 between Weld
County, Colorado, a political subdivision of the State of Colorado,
by the Board of County Commissioners, for its respective interests,
C/O Board of County Commissioners, Weld County Centennial Center, 915
10th Street, Greeley, Colorado 80631 as LESSOR, and Golden Buckeye
Petroleum Corporation, 1064 Bannock Street, Denver, Colorado 80204 as
LESSEE, covering land in Weld County, Colorado, described as follows:
A tract of land situated in the Southwest Quarter of Section
Fifteen and the North Half of Section Twenty-two, Township
Five North of Range Sixty-four West of the 6th P.M. , said
tract being eighty feet in width, being forty feet on each
side of the following described center line of State Highway
No. 2, and more particularly described as follows:
Beginning at the northwest corner of Section Twenty-two, Town-
ship Five North of Range Sixty-four West; Thence North 89°53'
East along the north line of said Section Twenty-two, a dis-
tance of 2142.8 feet, more or less; Thence southeasterly on a
3° curve right, whose radius is 1910 feet, a distance of 1046.7
feet, more or less; Thence South 58°43' East a distance of
1914.5 feet, more or less, to a point in the said North Half,
Section Twenty-two, from whence the northeast corner of said
Section Twenty-two bears North 22° 44k' East a distance of
1362.9 feet, more or less.
Said tract containing 7.07 acres, more or less.
SIGNE FOR IDENTIFICATI N PURP ONLY
\ff
B 1032 REC 01969212 06/04/84 16: 10 $0 . 00 6/006
F 1202 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
D
GOLDEN BUCKEYE PETROLEUM
CORPORATION ` SAY YYS4
1064 Bannock Street
Denver, Colorado 80204
April 30, 1984
Board of County Commissioners
Weld County, Colorado
P .O. Box 758
Greeley, Colorado 80632
Gentlemen:
Golden Buckeye Petroleum Corporation has recently been assigned
certain Oil & Gas Leases located within Weld County. We have
completed our title research on each tract contained within said
leases and have found a small parcel belonging to Weld County in
which is not under lease. We need this particular tract to com-
plete a full one hundred sixty ( 160 ) acre block and wish to have
the normal bidding procedures waived.
Our proposal to aquire an Oil & Gas Lease would be $100 per acre,
18% royalty, and a 3 year term.
I ' ve attached a copy of the open parcel of land and wish to hear
from you as soon as possible. Please call ( 303 ) 892-0919 .
Sincerely,
Walt Lundsford, by
Lew Hagenlock
WL/lh
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GOLDEN BUCKEYE PETROLEUM CORPORATION
May 22, 1984 WELD
Clerk to the Board's Office
P.O. Box 758 MAY 2 5 1984 :
Greeley, CO 80632
ATTN: Tommie 'GREEDY.
RE: Bonus Payment
Dear Tommie:
Per our telephone conversation this morning, enclosed please find a check
in the amount of $721 .14. If you have any questions, please don't hesitate to
call me.
Sincerely,
�. A.
V
Robin D. Clark
Land Assistant
1064 BANNOCK STREET, DENVER, COLORADO 80204 /(303) 892-0919
if I
1 ikSt OFFICE OF WELD COUNTY CLERK AND RECORDE
3 DEPARTMENT OF CLERK TO BOAR
42
PHONE (3031 356-4000 EXT. p,
WI 1 p O P.O. SOX 4.
GREELEY, COLORADO 806:
COLORADO• May 31 , 1984
Golden Buckeye Petroleum Corp.
1064 Bannock Street
Denver, CO 80204
Dear Sirs:
Enclosed are two copies of an Oil and Gas lease between
Weld County and Buckeye Petroleum Corporation covering
7. 07 acres in the SWa of Section 15 and the NZ of Section
22 , Township 5 North, Range 64 West of the 6th P.M. , Weld
County, Colorado.
They were submitted to us without having been signed by
a representative of your company. Please have both copies
signed in the presence of a notary public and return both
copies to:
Weld County Commissioners
P.O. Box 758
Greeley, CO 80632
Upon receipt of the fully executed copies we will have
the lease recorded and return a purported copy to you.
Sincerel ,
Deputy County Clerk
GOLDEN BUCKEYE PETROLEUM CORPORATION
June 1, 1984
Office of Weld County Clerk and Recorder
Department of Clerk to Board
P.O. Box 459
Greeley, CO 80631
Gentlemen:
Enclosed please find the two copies of the lease between Weld County and Golden
Buckeye Petroleum. Both copies have been signed and notorized. If you have any
questions, please feel free to call me. /1
Sincerely,
c%
Robin D. Clark
Land Assistant
1064 BANNOCK STREET, DENVER, COLORADO 80204 /(303) 892-0919
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