HomeMy WebLinkAbout880168.tiff RESOLUTION
RE: APPROVE REQUEST OF BILL CREWS, ON BEHALF OF CACHE
EXPLORATION, INC. , 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 Cache Exploration, Inc. ,
has requested that the bidding procedure be waived concerning an
Oil and Gas Lease on the following described mineral acres:
Lots 30, 31 and 32 , Block 1; and Lot A, Block
3 , Herrington' s Addition to the Town of
La Salle; being part of the NW*NWI , Section 5 ,
Township 4 North, Range 65 West of the 6th
P.M. ; Weld County, Colorado
WHEREAS, after review, the Board found that Cache
Exploration, Inc. did show good cause for waiving the bidding
procedure on said Oil and Gas Lease, and
WHEREAS , Cache Exploration, Inc. is offering to lease the
above described mineral acres, containing 1 .44 mineral acres , more
or less, and
WHEREAS, the Board finds that the lease offer from Bill
Crews, on behalf of Cache Exploration, Inc. , 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 Cache Exploration, Inc. , P.O. Box 2480 ,
Greeley, Colorado 80632 , to waive the bidding procedure on an Oil
and Gas Lease concerning the 1 .44 mineral acres, be, and hereby
is , approved.
BE IT FURTHER RESOLVED by the Board that the offer of Cache
Exploration, Inc. , as hereinabove stated, be, and hereby is,
accepted.
/
/ / / /;/:r is Let` ,' � < 880168
Page 2
RE: WAIVE BID PROCEDURE - CACHE EXPLORATION, INC.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 17th day of
February, A.D. , 1988 .
�� � • BOARD OF COUNTY COMMISSIONERS
ATTEST: �t Lt e� calW(Q� J WEL OUNTY, COLORADO
Weld County C erk and Recorder 713/6
and Clerk to the Board e R. B,r ntner�an
BY:L � t,,,
. ,,CA) C. . Kir y, Pr Tem
eputy County erk
APPROVED AS TO FORM: J cqu i h so
Gdr La
County Attorney 7
Frank amaguc i
880168
eR21A4003
PRODUCERS 88-PAID UP WELD COUNTY OIL AND GAS LEASE
(no warranty)
(small tracts-bid waived)
THIS AGREEMENT, made and entered into this 17th. day of February, 1988, by and between WELD COUNTY, COLORADO, a "1 W
political subdivision of the State of Colorado acting by and through the Board of County Commissioners of the County o
of Weld, c/a Weld County Centennial Center, 915 10th. Street, Greeley, CO 80631, hereinafter called Lessor, and rn
CACHE EXPLORATION, INC., P.O. Box 2480, Greeley, CO 80631, hereinafter called Lessee. H CO
WITNESSETH, that Lessor, for and in consideration of the sun of Two Hundred Dollars ($200), in hard paid, of
the royalties herein provided, and of the agreements of Lessee herein contained, hereby grants, demises, leases and K
lets exclusively unto the said Lessee the land hereinafter described, for the purpose of investigating, exploring y N
and drilling for, producing, saving, taking, owning, transporting, storing, handling and treating oil and gas, w
together with all rights, privileges and easements useful for Lessee's operations hereunder on said land and onIt a
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lands in the sane field, including, but not Limited to the following rights: to lay pipe lines; to build roads; and trio
to construct tanks, poop and power stations, power and comnnication lines, and other structure and facilities. The p w
phrase "oil and gas", as used in this Lease, shall embrace all hydrocarbons, as well as other substances practiced DD
therewith. Stu
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The land included in this lease is situated in Weld County, Colorado and is described as follows, to wit: Z to
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Township 4 North. Range 65 West, 6th. P.M.
Section 5: Lots 30, 31 & 32, Block 1; and Lot A, Block 3, Herrington's Addition to the Town of LaSalle, • ,p
Colorado, being a part of the NW'kNI&. R'
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and contains 1.44 acres, more or less, and includes alt oil and gas underlying lakes, streams, roads, easements N o
and rights-of-way which traverse or adjoin said land; and includes all lands owned or claimed by Lessor as a part of b
any tract above described. This Lease shall cover all the interest in said land now owned by or hereafter vested in
Lessor. For the purpose of calculating any payments based on acreage, Lessee, at Lessee's option, may act as if O
said land and its constituent parcels contain the acreage above stated, whether they actually contain more or less.
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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 or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled
therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term
of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is
then engaged in drilling or re-working operations thereon, then this Lease 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 or abandonment of one welt and the beginning of operations for the drilling of a subsequent well. If
after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from
any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-
working operations within ninety (90) days from date of cessation of 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 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 leased
premises or on acreage pooled therewith.
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880168
2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not
be obligated, except as otherwise provided herein, to commence or continue any operations during the primary tem.
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 delivering to Lessor or by filing for record a release or releases, and
be relieved of all obLigation thereafter accruing as to the acreage surrendered.
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3. Royalties to be paid Lessor are: (a) on oil, one-eighth (1/8) of that produced and saved from said lands,
to be delivered at the wells or to the credit of Lessor into the pipe line to which the wells nay be connected. F~,,
Lessee may from time to time purchase any royalty oil, paying therefor the market value in the field where produced CT N) CO
on the day it is rum to the pipe line or storage tanks; (b) on gas, including casinghead gas or other gaseous
substances, produced from said land and sold or used off the premises, the market value at the well of one-eighth
(1/8) of the gas so sold or used, provided that on gas sold at the well the royalty shall be one-eighth of the f]
the amount realized from such sates; (c) on other substances produced with oiL or gas, and covered by this lease, O
one-eighth (1/8) of their value at the well. If at any time oil and/or gas from a well capable of producing oil
and/or gas is not being sold or used off the premises, and this lease is not being otherwise maintained in full Z to
force and effect, Lessee shall pay or tender to Lessor, as royalty, the sun of One Dollar ($1.00) per acre per year
(or the total sun of $50.00, whichever is the greater amount) on the acreage then held be Lessee hereunder, the C w
first such payment or tender to be made on or before the amiversary date of this lease; provided, however, that if Ezi
oiL or gas from any such well is sold or used off the premises before the applicable anniversary date of this tease rni O
(even if such well is again shut in before such date), or if on such date this lease is being maintained in forcetri
and effect other than by reason of such shut in well, Lessee shall not be obligated to pay or tender, on or before z
that particular anniversary date, said sun as shut in royalty. If such payment or tender is made, it will be
considered that oil and/or gas, as applicable, is being produced within the meaning of this lease. During such p m
time, Lessee may remove the pumping unit, rods, tubing and other equipment from the well or wells for use elsewhere 721
in Lessee's business, consistent with all applicable laws, rules and regulations.
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4. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple o
estate therein, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said t9
Lessor only in the proportion which Lessor's interest bears to the whole and udivided fee. n
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5. Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for Lessee's ti
operations thereon, except water from the wells of Lessor. XI a
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6. When requested by Lessor, Lessee shall bury Lessee's pipe Lines below plow depth. - r
7. No well shall be drilled nearer than 200 feet to any house or barn now on said premises without written O N
consent of Lessor.
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8. Lessee shall pay for damages caused by Lessee's operations to growing crops and improvements on said land. O da
9. Lessee shall have the right at any time to remove all machinery and fixture placed on said premises,
including the right to draw and remove casing.
10. 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 copies of all recorded instruments or documents and other information necessary to
establish a complete chain of record title from Lessor, and then only with respect to payments 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 different portions or parcels of said land shall operate to enlarge the obligations or
diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any 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
leasehold owner.
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880168
11. Lessee, at its option, 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 mere of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by
this lease with other land, lease or Leases in the immediate vicinity for the production or oil and gas, or
separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and .2jw
irrespective of whether authority similar to this exists with respect to such other land, lease or leases. o
Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such o m
non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing L.ual m
of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit mayX Pd
include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore n
been commenced. Production, drilling or reworking operations or a well shut 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 or reworking O
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operations or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein z w
specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties 4a
only on the portion of such production allocated to this tease; such allocation shall be that proportion of the unit M Oo
production that the total number of surface acres covered by this lease and included in the unit bear to the total a w
number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to unitize, pool or t4
carbine all or any part of the above described lands as to one or more of the formations thereunder with other lands H CD
in the same general area by entering into a cooperative or unit plan of development or operation approved by any a
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governmental authority and, from tine to tine, with like approval, to modify, change or terminate any such plan or z �
agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to conform0 Co
to the terms, conditions and provisions of such approved cooperative or unit plan of development or operation and, co
particularly, all drilling and development requirements of this Lease, express or impled, shall be satisfied by VI
compliance with the drilling and development requirements of such plan or agreement, and this lease shall not 7C
terminate or expire during the life of such plan or agreement. In the event that said above described lards or any Q7 ..
part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby off
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 p0
Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to l7
any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only LIJ
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. O
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12. All express or implied covenants of this lease shalt be subject to all Federal and State laws, executive f]
orders, rules or regulations, and this lease shalt not be terminated, in whole or in part, nor Lessee held liable in 2 to
damages, for faiLure to comply therewith, if compliance is prevented by, or if such failure is the resuLt of, any ` C
such Law, order, rule or regulation. C) O
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13. Lessor does not warrant title to the Leased premises, but it shall, upon request, allow Lessee access 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.
14. All of the provisions of this tease shall be binding upon the heirs, personal representatives, successors
and assigns of Lessor and Lessee.
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
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880168
BOARD OF COUNTY COMMISSIONERS
WELD V.
COLORADO
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ATTEST:`! I" ,( 1/4cn Co
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Weld Canty Clerk and Recorder %O
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and Clerk to the @@ait i . 0 w n
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CACHE EXPLORATION, INC. CO O
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by•, %l� ! 2 Ln
William G. Crews, Agent 0 Co
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STATE OF COLORADO ) + f..
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COUNTY OF WELD ) O
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The foregoing instrument was acknowledged before me this 17th. day of February, 1988, by William G. Crews as n
Agent for Cache Exploration, Inc., a Colorado corporation, on behalf of said corporation. O
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Witness my hand and official seal. CD
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My conmissi an expires: C7
i,','. O;u;Ti;SS;3.1 rlcni YWy'5, it Notary Public n
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880168
•
WILLIAM G. CREWS, CPL
OIL AND GAS
Ea 1 ( 1223 28TH AVENUE. SUITE 2
GREELEY COLORADO 80631
L 13 0. ( 7:1 (303)351 0733 GREELEY
1 f 1II (303)6597710 DENVER
January 25, 1988
JAN 251988 Hf
Clerk to the Board of =736-
Weld County Commissioners
Centennial Building =:;:. CaLC,.
915 10th. Street
Greeley, CO 80631
This is to request a hearing on Wednesday, January 27 at 9:00 a.m. before the
Board of Weld County Commissioners for the following:
1. Request amendment, on behalf of The Robert W. Gerrity Company and
Snyder Operating Partnership L.P., of Weld County Oil and Gas 7eacn dated
August 5, 1987 covering portions of the W1 of Section 27, Township 4 North,
Range 64 West.
2. Request amendment, on behalf of Silverado Oil, Inc. , Cache
Exploration, Inc., and Conquest Oil Company, of Weld County Oil and Gas 7sae
dated December 19, 1985 covering portions of the S1 of Section 12, Township 5
North, Range 65 West.
3. Request waived-bid paid-up oil and gas laasi from Weld County
covering less than two total acres in MANTA of Section 5, Township 4 North,
Range 65 West (Lots in Herrington's Addition, Town of Ta.Sa11e) . This is
basically a continuation of a previous request.
I will have met with Tam David concerning all three requests prior to the
netLing on January 27.
Your scheduling of my appearance before the Board will be sincerely
appreciated.
Cordially,
William G. Crews, CPL
cc: Thomas David, Esq.
County Attorney
Weld County
WIC/mm
880092
880168
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