HomeMy WebLinkAbout890977.tiff RESOLUTION
RE: APPROVE REQUEST OF BILL CREWS, ON BEHALF OF EDDY OIL COMPANY,
TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE AND
ACCEPT 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, Bill Crews, on behalf of Eddy Oil Company, has
requested that the bidding procedure be waived concerning an Oil
and Gas Lease on the following described mineral acres:
Township 4 North, Range 67 West, 6th P.M.
Section 26 : A rectangular parcel of land in
the SE} , 106 feet wide and 127 feet long,
marked at the corners with concrete blocks,
being the site of old "Fort St. Vrain" , as
shown on the plat of the Town of Fort St.
Vrain (now vacated) , and being on a parcel of
land shown on said plat bordered on the North
by Roubidoux Avenue, on the East by Ceran
Place, on the South by Sarpey Avenue, and on
the West by Kiowa Street, including all
vacated streets and alleys .
WHEREAS, after review, the Board found that Eddy Oil Company
did show good cause for waiving the bidding procedure on said Oil
and Gas Lease, and
WHEREAS, Eddy Oil Company is offering to lease the above
described mineral acres, containing 0 .309 mineral acres, more or
less, and
WHEREAS, the Board finds that the lease offer from Bill
Crews, on behalf of Eddy Oil Company, 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 Bill
Crews , on behalf of Eddy Oil Company, 1432 South Lansing, Aurora,
Colorado 80012 , to waive the bidding procedure on an Oil and Gas
Lease concerning the 0 .309 mineral acres, be, and hereby is,
approved.
890977
Page 2
RE: WAIVE BID PROCEDURE - EDDY OIL COMPANY
BE IT FURTHER RESOLVED by the Board that the offer of Eddy
Oil Company, as hereinabove stated, be, and hereby is, accepted.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 6th day of
September, A.D. , 1989.
BOARD OF COUNTY COMMISSIONERS
ATTEST: : fgfr 'c.t o+ eflAci
1 WELD COUNTY, COLORADO
Weld County Clerk and Recorder A
and Clerk to the Board C.W.Kir y, C airman
BY: /7Th y/�/ , EXCUSED
/7�-��- � J Jac ine Johnson, Pro-Tem
Deputy,aunty rk ��
APPROVED AS TO FORM: Gene R. Brantner
- - George Kennedy
County Attorry EXCUSED
Gordon E. Lacy
890977
AR2191647
PRODUCERS 88-PAID UP WELD COUNTY OIL AND GAS LEASE
Rev. 5-60, No. 2
(no warranty)
THIS AGREEMENT,made and entered into this 6th day of September,1989,by and between WELD COUNTY,COLORADO,
en 0 a political subdivision of the Sate of Colorado acting by and through the Board of County Commissioners of the County of Weld,c/o
O U Weld County Centennial Center, 915 10th. Street, Greeley, CO 80631, hereinafter called Lessor, and EDDY OIL COMPANY, a
Colorado corporation, 1432 So. Lansing, Aurora, CO 80012, hereinafter called Lessee.
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U WITNESSETH,that Lessor,for and in consideration of the sum of Two Hundred Dollars($200),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
a by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described,with the exclusive
7.4 right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom; oil and all
O gas of whatsoever nature or kind,with rights of way and easement for laying pipe lines,and erection of structures thereon to produce,
O ft save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as
V) PAl 4 follows, to wit:
O Township 4 North, Range 67 West, 6th P.M.
U Section 26: A rectangular parcel of land in the SEY, 106 feet wide and 127 feet long, marked at the corners with concrete
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blocks,being the site of old "Fort St.Vrain",as shown on the plat of the Town of Fort St.Vrain (now vacated),
r) and being on a parcel of land shown on said plat bordered on the North by Roubidoux Avenue, on the East by
Ceran Place, on the South by Sarpey Avenue,and on the West by Kiowa Street, including all vacated streets and
.• Y, alleys.
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aand containing 0.309 acres, more or less.
Coll
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
'• T. or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are
H~ continued as hereinafterprovided. If, at the expiration of the primary term of this lease, oil orgas is not being produced on the
P 6
CA El leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon,then this lease
O CO• shall continued 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
N D 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
`r 43 said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall
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,..{ not terminate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of
Z 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
Z 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
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p leased premises or on acreage pooled therewith.
• a 2. This is a PAID-UP LEASE. In consideration of the down cash payment,Lessor agrees that Lessee shall not be obligated,
a2-' 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
re) delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage
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N O't surrendered.
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PCl W 3. In consideration of the premises the said Lessee covenants and agrees:
1st. To deliver to the credit of Lessor,free of cost,in the pipe line to which Lessee may connection wells on said land,
the equal one-eighth (1/8) part of all oil produced and saved from the leased premises.
2nd. To pay Lessor one-eighth (1/8) of the proceeds received by Lessee each year, payable quarterly, for the gas from
each well where gas only is found,while the same is being used off the premises, and if used in the manufacture of gasoline a royalty
of one-eighth (1/8),payable monthly at the prevailing market rate for gas, but in no case shall such market rate be deemed more than
Lessee actually receives from the sale of such gas.
3rd. To pay Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or
any other product a royalty of one-eighth (1/8) of the proceeds received by Lessee from the sale of such gas.
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 me 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.
1 QQ�Q77
890
5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein,
then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said Lessor only in the proportion which
Lessor's interest bears to the whole and undivided fee.
pUU 6. Lessee shall have the right to use,free of cost,gas,oil and water produced on said land for Lessee's operations thereon,
a except water from the wells of Lessor.
NO
U 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth.
la 8. No well shall be drilled nearer than 200 feet to any house or barn now on said premises without written consent of Lessor.
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a '3 9. Lessee shall pay for damages caused by Lessee;s operations to growing crops on said land.
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t? ra 10. Lessee shall have the right at any time to remove all machinery and fixture placed on said premises, including the right
2 to draw and remove casing.
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U 11. The rights of Lessor and Lessee hereunder may be 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
ul
M copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from
W 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 difference portions or parcels of said land shall
~ r operate to enlarge the obligations or diminish the rights of Lessee,and all Lessee's operations may be conducted without regard to any
rz such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission or any other
• Uleasehold owner.
N z 12. Lessee,at its options, 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,
cr,• El E to pool or unitize the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate
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O Cl) vicinity for the production or oil and gas, or separately for the production or either, when in Lessee;s judgment it is necessary or
ai 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.
C' is The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization
G. or reformation,which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed
mz or upon which operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a well shut
e4 Z 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
0 4 or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified,
>4 including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties only on the portion of such
U ai 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
en co 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 authority and, from time to time,with like approval, to modify, change or terminate any such plan or agreement
,Ni N 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
PO Ga requirements of this lease,express or impled, 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 agrement. 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 an 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.
13. 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.
14. I ecsor does not warrant title to the leased premises, but it shall, upon request, allow Lessee arress 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.
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590977
15. All of the provisions of this lease shall be binding upon the heirs,personal representatives,successors and assigns of Lessor
and Lessee.
16. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express
written consent of Lessor.
MO IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
O
M O BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
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H By William G. Crews, Agent
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COUNTY OF WELD )
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O The foregoing instrument was acknowledged before me this �aS day of September, 1989, by William G. Crews as Agent for
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Eddy Oil Company, a Colorado corporation, on behalf of said corporation.1.PG •Wittlds-my hand and official seal.
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• to �Xrbmmt oeket�rr s: i, 'l�Pi ,(
—/J/bi Notary Public
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L. Ci� &reelect', CO (906
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3 890977
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE, SUITE 2
GREELEY, COLORADO 80631
(303)351-0733 GREELEY
- (303)659-7710 DENVER
September 5, 1989
Board of Weld County Commissioners
915 10th Street
Greeley, CO 80631
Dear Commissioners:
This is to request an appearance before the Board tomorrow, September 6, 1989, to request a small tract
bid-waived oil and gas lease for my client, Eddy Oil Company, covering a rectangular parcel of land 106'
wide and 127' long, being the site of old Fort St. Vrain (now vacated) in the SE'/ of Section 26, Township
4 North, Range 67 West, Weld County, Colorado. The involved parcel contains 0.309 acres, more or less.
Eddy Oil Company agrees that no operations will be conducted on or across the parcel.
Thank you for your assistance. -
Cordially,
William G. Crews, CPL
WGC/mm
9C 911
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