HomeMy WebLinkAbout881233.tiff RESOLUTION
RE: APPROVE AMENDMENT TO OIL AND GAS LEASE AND AUTHORIZE CHAIRMAN
TO SIGN
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, Weld County currently holds an Oil and Gas Lease
originally issued to Cache Exploration and Conquest Oil Company on
a parcel of land containing . 46 acres, more or less, located in
the SE}SW} of Section 12 , Township 5 North, Range 65 West of the
6th P.M. , Weld County, Colorado, and
WHEREAS, the Board has been presented with an Amendment to
said Oil and Gas Lease, and
WHEREAS, after study and review, the Board deems it advisable
to approve said amendment.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Amendment to Oil
and Gas Lease covering land in the SE}SW} of Section 12 , Township
5 North, Range 65 West of the 6th P.M. , Weld County, Colorado, be,
and hereby is approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and
hereby is, authorized to sign said Assignment.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 28th day of
December, A.D. , 1988 .
L BOARD OF COUNTY COMMISSIONERS
ATTEST: cEt,,JAke WELD COUNTY, COLORADO
Weld County lerk and Recorder EXCUSED
and Clerk to the Board Gene
,�R. BBrantner, Chairman
BY: �y � C.W. Kirby, Pr` Tem
eputy County Clerk
• �. ►u .�
APPROVED AS TO FORM: a qu-'b• •e nson
7
County Attorney
Frank j ama " c i
i,, 46,(9 -9/ 881233
Aft 21,66950
AMENDMENT TO OIL AND GAS LEASE
THIS AMENDMENT is made and entered into this 28th. day of December, 1988, by and between
WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through
o u the Board of County Commissioners of the County of Weld ("Weld County"), as Lessor; and FRANCIS
ENERGY, INC. 1988 #1 JOINT VENTURE, a Colorado joint venture; and SILVERADO LTD. #1-88,
O a Colorado limited partnership, as Lessees.
U
a 1. BACKGROUND. By Resolution dated February 8, 1988, but effective as of December 11, 1985,
c ra recorded in Book 1186 under Rec. No. 2131428, Weld County amended that certain Oil and Gas Lease
(the "County Lease") dated December 11, 1985 and recorded in Book 1099 under Rec. No. 2039432,
o
W covering certain parcels of land in the NY2SEY and SEA/aSW'/s of Section 12, Township 5 North, Range 65
a West,6th. P.M.,to change certain provisions concerning assignment,bonding, pooling and overriding royalty
O provisions therein.
UWW
rn a That portion of the County Lease covering a .46 acre, more or less, strip of land in the SEV4SWY of
w said Section 12 is now owned 50% by Francis Energy, Inc. 1988 #1 Joint Venture and 50% by Silverado
1/4° Ltd. #1-88. Both Weld County and other adjoining mineral owners currently claim ownership of the
minerals under the involved strip. The County Lease provides for a royalty of 21%, but the aggregate
a, a royalty burdens against the oil and gas leases covering the other parties'claimed mineral ownership are 20%.
U Since prompt resolution of the disputed mineral ownership does not seem likely, Francis Energy, Inc., as
• Z managing venturer of Francis Energy, Inc. 1988 #1 Joint Venture, and Silverado Oil Company, as general
rj partner of Silverado Ltd. #1-88, have requested that Weld County reduce the royalty payable under the
E'' County Lease from 21% to 20% in order that such disputed ownership does not work a hardship on the
c4 leasehold owners, who are unable to resolve the mineral ownership dispute.
o
w 2. AMENDMENT. In consideration of $25, the receipt and sufficiency of which are hereby
ON w 2 acknowledged, the Board of County Commissioners of Weld County, Colorado does hereby amend the
County Lease to provide that all reference to royalty therein, insofar as the County Lease covers lands in
o• < the SEYSWY of said Section 12 only, is changed, effective as of December 11, 1985, to read twenty percent
WU P4 (20%) instead of twenty-one percent (21%).
g 3. RATIFICATION. Weld County does hereby ratify and confirm the County Lease, as herein
o o amended, and.does hereby lease, let and demise all lands described therein to the current owners of the
m IP.ase under all of the terms and provisions of the County Lease, as herein amended and as amended by
that certain Resolution recorded in Book 1186 under Rec. No. 2131428. By their execution hereof, no party
m W asserts any claim to the minerals or to unpaid royalty which did not exist prior to the execution hereof, and
the County agrees that if it should prevail in any court of competent jurisdiction in any action to determine
the ownership of the oil, gas and other minerals in, on and under the involved strip, that the current
leasehold owners, their successors and assigns shall not be liable for more than 20%of all oil, gas and other
hydrocarbon substances produced, saved and sold from the involved parcel under the terms of the County
1 ease as herein amended.
The County acknowledges that production proceeds attributable to the involved strip shall be held in
suspense by the respective oil and gas production purchasers until the mineral ownership dispute is resolved,
by legal action or otherwise.
IN WITNESS WHEREOF, this instrument is executed as of the date first above written, but shall be
effective for:,all p [,poses as of December 11, 1985.
A ` �w � �• �v ��tf''""^ BOARD OF COUNTY COMMISSIONERS
WEL� a� R' '4'ECORDER WELD COUNTY, COLORADO
by tit:
C.W. Kirby, Chairman o-Tem
SILVERADO LTD. #1-88
BY: Silverado I n 1 Partner
by:
William . Crews, Attorney-in-Fact
FRANCIS ENERGY, INC. 1988 #1 JOINT VENTURE
BY: Francis Ener , I c Managing Venturer
by: /sT-c-7
William G. Crews, Attorney-in-Fact
[acknowledgment attached]
881233
STATE OF COLORADO )
) ss.
o U COUNTY OF WELD )
0
NI U The foregoing instrument was acknowledged before me this ay of December, 1988, by William
G. Crews`as Attorney-in-Fact for Silverado Oil, Inc., a Colorado corporation, on behalf of said corporation
Was General Partner of Silverado Ltd. #1-88, a Colorado limited partnership, on behalf of said partnership.
o s 1~ and official seal.
Notary Public
U ), •...
al
01W r. t. .a`'
QS
k STATE OF COLORADO )
cx ) ss.
I-4 COUNTY OF WELD )
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VI Z The foregoing instrument was acknowledged before me this day of December, 1988, by William
W G. Crews as Attorney-in-Fact for Francis Energy, Inc.,a Colorado corporation,on behalf of said corporation
o y as Managing Venturer of Francis Energy, Inc. 1988 #1 Joint Venture, a Colorado joint venture, on behalf
a of said joint venture.
W
m W Witness my hand and official seal. 1� ��� /
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881233
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