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HomeMy WebLinkAbout830012.tiff AN1933943 RESOLUTION RE: APPROVE REQUEST OF W.G. VAN BEBBER TO WAIVE BIDDING PRO- CEDURE 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 o xs c: o Rule Charter, is vested with the authority of administering the co u affairs of Weld County, Colorado, and 74 M WHEREAS, W. G. Van Bebber has requested that the bidding z . z procedure be waived concerning an Oil and as lease on the m `" following described mineral acres : o Township 5 North, Range 66 West of the 6th P.M. Section 25: Ni of Lot 2 of the SEaSE4 (5. 0 Ac . ) ; z w Right of way 100 feet wide over and across Lots 1 and 3 of the NEaSEa and over Lot 2 of the 7 `4 SW4SE4 and over Lot 4 of the NWaSEa (4 . 67 ac. ) ; Right of way 100 feet wide over Lot 3 in the NWaSEa ( . 46 ac. ) ; Right of way 100 feet wide over Lots 1, 2 and 3 of the SEaSWa and over Lots 4 and 5 of the SWaSWa (6 . 51 ac. ) ; Right of way 100 feet wide over Lot 2 of the NEaSEa; Right of way over Lot 16 of the NEa; Part of T Lot 16 South of the 100 foot wide right of way in the NEa (1. 5 ac. ) ; £ 0 71 0 All reference to "Right of way 100 feet wide" in the above description refers to the abandon- s, ed right of way of the former Denver, Laramie y and Northwestern railroad. WHEREAS, after review, the Board of County Commissioners found that W. G. Van Bebber did show good cause for waiving the bidding procedure on said Oil and Gas lease, and WHEREAS, W. G. Van Bebber is offering to lease the above described mineral acres , containing 18. 14 mineral acres, more or less, and WHEREAS , said lease is to be for a period of three years with a paid up lease of One Thousand Three Hundred Sixty and NO/100 Dollars ($1, 360 . 00) , a copy of said lease being attached hereto and incorporated herein by reference, and WHEREAS , Weld County is desirous of accepting said offer from W. G. Van Bebber to lease the above described mineral acres. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the request of W. G. 830012 Page 2 RE: WAIVE BIDDING PROCEDURE - W. G. VAN BEBBER Van Bebber to waive the bidding procedure on an 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 W. G. Van Bebber, 1860 Lincoln Street, Denver, Colorado 80295 , to lease �_ ,. CD the above described mineral acres for a period of three (3) years r,z with a paid up lease in the amount of One Thousand Three Hundred a r: Sixty and NO/100 Dollars ($1, 360. 00) be, and hereby is, accepted. j The above and foregoing Resolution was , on motion duly made z and seconded, adopted by the following vote on the 13th day of m _b July, A.D. , 1983 . BOARD OF COUNTY COMMISSIONERS ATTEST: WELD COUNTY, COLORADO Z v r- cpi Weld County Clerk and Recorder � and Clerk to the Board Cliuc�n�irman 13kT� t� EXCUSED (, Deputy County Clerk Joh T. Martin, Pro-Tem rn r APPROVE%AS TO FORM: �� n"p✓ E Gene R. Brantner fi County Attorney Norman Carlson c CD CN J. qu ine J.hn.on DAY FILE : July 18, 1983 WELD COUNTY. COLORADO OIL AND GAS LEASE THIS AGREEMENT made thisl3ti1 day of July , lc(13, 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 W. G. Van Bebber, 1860 Lincoln St. Denver, CO Lessee, WITNESSETH: and 50/10Q 1. lessor in consideration of ONE THOUSAND THREE HUNDRED & SIXTY DOLLARS/Dollars $1,360.5'0 ), 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: BUR DESCRIPTION, SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF and containing __ 18. 14 acres, more or less ( 18.14 net mineral acres). a 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. 3rz rn 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- z: rh 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 m' cents (504) 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 c^, 0 shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or :2: any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender '" -k to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if z .4.% such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well , this '. lease shall continue in effect for successive periods of twelve (12) months each. T 4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from z `~ this date, the lease shall then terminate as to both parties, unless on or before such anniversary date Lessee shall 7 nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of z '0 One Dollar(s) ($ 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 T for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein v 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 £ 0 he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record " 0 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. C W 5. Should any well drilled on the above described land during the primary term before production is obtained be n a a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, O =^ 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 discoverycof 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 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 he 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 the 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 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 thjs 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 X or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall m 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 a; 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, he 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 z `O upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit z`,1 plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same r .. upon request of Lessee. T -- r 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 rTi below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now Z -40 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 ^ O 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- r rs 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 -.^, C+ 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 in to obtain material, failure of transportation, or other cause beyond the control of Lessee. C .� 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 r-, nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro- Tr; r%. 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. 14a. Notwithstanding anything herein contained to the contrary, this lease is a PAID UP lease and no rental payment shall be due under the provisions of paragraph Four (4) hereof during the 3 (three) year primary term of this lease. 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. BOARD OF COUNTY COMMISSIONERS -WELD COUNTY, COLORADO ' I �:lMJ1'\�C'i�J ( ,f�,1r . //%/�i tl✓�sr ATTEST: 1 � �1 0.,,,,,... Weld County Clerk and Recorder Boardx _� LES E :n 1 .3. n r a z W. G. Van Bebber Z v4 r STATE OF COLORADO ) -2) SS. C COUNTY OF WELD — s; The foregoing instrument was acknowledged before me this/3. —day of July 1983 by My commission expires: Witness my hand and official seal. r `` My CommissionExpires j' tuber 5, 1986 / r f(7zt)cc u c 73 .Z., T .��. ✓. / � 1 �`_ -/O :i. r O A" tv ` Pt" \_\t.\G , G_ . 'T�... ... , 6 Cr C` ' ,-; o s EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL AND GAS LEASE DATED JULY 13, 1983 BY AND BETWEEN WELD COUNTY, COLORADO, A POLITICAL SUBDIVISION OF THE STATE OF COLORADO AS LESSOR AND W. G. VAN BEBBER AS LESSEE. TOWNSHIP 5 NORTH, RANGE 66 WEST OF THE 6th P.M. Section 25: NZ of Lot 2 of the SEkSE1/4 (5.0 ac.) ; Right of way 100 feet wide over and across Lots 1 and 3 of the NEkSE4 and over Lot 2 of the SW1SE4 and over Lot 4 of the NWkSEk (4.67 ac.) ; Right of way 100 feet wide over Lot 3 in the NW4SEk (.46 ac.) ; Right of way 100 feet wide over Lots 1, 2 and 3 of the SEkSW1/4 and over Lots 4 and 5 of the SWkSWk (6.51 ac.) ; Right of way 100 feet wide over Lot 2 of the NE4SE4; Right of way over Lot 16 of the NE' ; Part of Lot 16 South of the 100 foot Coe wide right of way in the NEB (1.5 ac.) ; 7? m All reference to "Right of way 100 feet wide" in the above description refers to the abandoned right of way of the former Denver, Laramie and Northwestern railroad. Z .a z T y T f y -t ti i J CO • Ci 0 a' Ti 7.7 v '. v :J T 0 r) v v V` W. G. VAN BEBBER PETROLEUM&MINERAL PROPERTIES 1050 LINCOLN TOWER BUILDING 1860 LINCOLN STREET DENVER.COLORADO 80295 (3031861-0872 July 8, 1983 Weld County Commissioners P.O. Box 758 Greeley, CO 80632 RE: Leasing of County Lands for Oil and Gas. Dear Commissioners: Thank you for waiving the bid procedure as per my request on June 23rd. I am looking forward to being at the Commissioners' meeting next Wednesday to make my proposal for leasing the lands. In further reviewing the layout of the County lands on a map, and seeing them in relationship to the lands I have leased already, I have decided to lease only those County lands in Sections 25 and 35, T5N, R66W and in Section 30, T5N, R65W. Total acreage: about 46.37a. I will prepare a lease so that its completed form will be ready for your review on Wednesday. Thank you for your cooperation. Since e , \ \.,I ) . Li --- W. G. Van Bebber WGV/tvb C f... fin,, hf Y -e , ... 1 '... rar ;7' Fes Corr W. G. VAN BEBBER ?4 44-0— ( PETROLEUM 9 MINERAL PROPERTIES JUN 2 71983 1050 LINCOLN TOWER BUILDING 1860 LINCOLN STREET I/ 1 jd & ' DENVER.COLORADO 80295 p�r (3031861 0872 ,( .1 y_I - . F / I `1 ^ ' * 1, r June 23, 1983 x�x iJ t�s I\ ,S RE: Leasing of County Lands for Oil & Gas Exploration Board of County Commissioners Weld County Colorado P.O. Box 758 Greeley, Colorado 80632 Dear Commissioners: Earlier this month I wrote you a letter in which I requested that certain county-owned tracts be put up for bid. I hereby request that the bid procedure be waived for the fol- lowing reasons: 1) The tracts are small and somewhat scattered. 2) The tracts are adjacent to larger tracts for which I already hold Oil and Gas Leases. I will pay the County $33.00 per net mineral acre for a three year, paid-up lease. I will lease the tracts in any combination or all on one lease if you prefer. Your prompt attention to this matter will be greatly appreciated. If you have any questions, please call collect at 861-0872. Sincerely, Thomas Van Bebber Personal Rep. for W. G. Van Bebber TVB/pp W. G. VAN BERBER PETROLEUM&MINERAL PROPERTIES 1050 LINCOLN TOWER BUILDING 1860 LINCOLN STREET DENVER.COLORADO 80295 13031861-0872 June 13, 1983 Board of County Coumissioners Weld County, Colorado P.O. Box 758 Greeley, CO 80632 Dear Commissioners: I am interested in leasing the following described county-owned minerals for Oil and Gas exploration. T5N, R66W of the 6th P.M. Section 11: A strip of land 30 fcct wide off the entire West side of the SWa (1.82A) Section 25: North 5 of Lot 2 in the SE4SE4 (5A) r/w 100 feet wide over Lots 1 and 3 of the NE' SE4 and over Lot 2 of the SWaSE4 and over Lot 4 of the NWaSEa (4.67A) r/w 100 feet wide over Lot 3 of the NW3SE4 (.46A) r/w 100 feet wide over Lots 1, 2 and 3 of the SE4SWa and over Lots 4 and 5 of the SWI SWa (6.51A) r/w 100 feet wide over Trot 2 of the NE4SEa (1.51A) Part of Lot 16 Southe of 100 foot r/w in the NEa r/w 100 feet wide over Lot 16 in the NE4 Section 35: r/w 100 feet wide over NzNE4 and over the SiNWa and over the N32NWa (12A) T5N, R65W, 6th P.M. Section 19: r/w 100 feet wide over and across Lots 1, 2, 5, 6, 7 and 8 of the NE4SEn and over Lots 1, 2 and 8 of the SWn4S.E4 and over the SE%SE4 (2.5A) r/w 100 feet wide over Trots 5 and 6 of the SW1/4SE4 (2.5A) Section 20: r/w 100 feet wide over the NWcor of th&5Wa5Wa 1.21A) Section 21: A 150 foot strip across the W1/2W'SE4 (2.5A) Section 30: r/w 100 feet wide over vats 1 to 3 and 5 to 7 in the NFANWa (2.5A) r/w 100. feet wide over Lots 1 to 4 in the SW3NWa (2.37A) Part of Lot 5 of the NE3NWa south of the old Denver, Laramie and N.Western RR(2.5A) Part of Lot 5 of the SWW.V south of the old Denver, Laramie and N.Western RR(4A) Part of Dots 5 and 6 of the SW'NWa and also part of Lot 5 North of r/w and part of Trot 6 Nort`i of r/w (5A) r/w 100 feet wide over Lot 8 of the NWIANW4 Please notify me as soon you have made a decision as to the leasing of these minerals. �• 1� 1 �c3pnn Yours erY 1Yr -`tr;. ` �' �- JUN 1 51983 . G. an Bebber I GREELEY. COLO. Hello