HomeMy WebLinkAbout860899.tiff RESOLUTION
RE: SUSPENSION OF OPERATIONS ON UNECONOMICAL OIL AND GAS WELLS
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, the Board of County Commissioners of the County of
Weld finds that the current market and price of oil endangers the
continuing production of oil and gas on County leaseholds, and
WHEREAS, the Board of County Commissioners of the County of
Weld also finds that long-term cessation of such production could
cause wells on these leaseholds to be plugged and abandoned,
thereby permanently eliminating future revenue, and
WHEREAS, Weld County' s oil and gas lease makes provision for
shut-in production, if approved by the Board of County
Commissioners, on payment of shut-in royalties.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the Board of County
Commissioners may grant the operators of oil and gas wells on Weld
County leaseholds the opportunity to temporarily suspend operation
on those wells that are, in the operator' s opinion, uneconomical
to produce.
BE IT FURTHER RESOLVED by the Board that such suspension may
be granted by the Board on receipt of a proper request for the
same. The Board will, however, review such request on a
case-by-case basis and will grant or deny the request as
warranted.
BE IT FURTHER RESOLVED by the Board that such a suspension
will be granted for a term of one year from the next anniversary
date of the said oil and gas lease, subject to renewal if
appropriate.
BE IT FURTHER RESOLVED that when a well is permitted to be
shut in by the Board, the lessee will be required to pay ONE
DOLLAR ($1. 00) per acre delayed rental and TWO DOLLARS ($2 . 00) per
acre shut-in royalty each year; however, the minimum per well
shall be TWO HUNDRED FORTY DOLLARS ($240 . 00) per year.
860899
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RE: SUSPENSION OF OPERATIONS ON UNECONOMICAL OIL AND GAS WELLS
BE IT FURTHER RESOLVED that the request for suspension of
production shall include the following:
1 . The production costs associated with the well (s) and the
current production and revenues received for the
production and other reasons justifying the request for
suspension.
2. A listing of all working interest parties in the
leasehold (attach Division Order if applicable) .
3 . A plat showing the amount of production from the well (s)
and current production from other producing wells of
non-county ownership in the reservoir (identify operator
of non-county production) .
4 . Proposal of lessee, if required, to protect County
mineral lands from drainage by adjoining wells located
on non-county lands.
BE IT FURTHER RESOLVED that the Board of County Commissioners
of the County of Weld will not entertain , pursuant to this
Resolution, a waiver of the shut-in royalty or per-acre lease
rental provisions of its oil and gas leases.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 19th day of
November, A.D. , 1986.
/J BOARD OF COUNTY COMMISSIONERS
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ATTEST: (L. A#nl WELD COUNTY, COLORADO
Weld County Clerk and Recorder
and Clerk to the B rd cq li on, Chairman
B
D uty County lerk Go y Tem
APPROVE AS TO FORM:
GyeellBr tn r
County Attorn
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Frank Yamag�if lif:/4��7����� "
860899
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