HomeMy WebLinkAbout881204.tiff RESOLUTION
RE: APPROVE REQUEST OF HOWARD AND ASSOCIATES, LTD. , 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, Howard and Associates, Ltd. , has requested that the
bidding procedure be waived concerning an Oil and Gas Lease on the
following described mineral acres:
Section 3 : Township 7 North, Range 58 West of
the 6th P.M. : Block 11 , Lot 27 , Baldwin and
Whitttiers Addition to the Town of Raymer; and
Block 10 , Lot 6 , Town of Raymer, Weld County,
Colorado
WHEREAS, after review, the Board found that Howard and
Associates, Ltd. , did show good cause for waiving the bidding
procedure on said Oil and Gas Lease, and
WHEREAS, Howard and Associates, Ltd. , is offering to lease
the above described mineral acres , and
WHEREAS, the Board finds that the lease offer from Howard and
Associates, Ltd. , 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 Howard
and Associates, Ltd. , 518 17th Street, Suite 640 , Denver, Colorado
80202 , 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 Howard
and Associates, Ltd. , as hereinabove stated, be, and hereby is ,
accepted.
// f;/f( 881204
Page 2
RE: WAIVE BID - HOWARD AND ASSOCIATES, LTD.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 19th day of
December, A.D. , 1988 .
BOARD O COUNTY COMMISSIONERS
ATTEST: ��� WELD NTY,//�COL` ADO
Weld County Jerk and Recorder ((iC=� �
and Clerk to the Board ene R. ,�Brantner, Chairman
C D'�1�' �. C.W�irly, *Tem
eputy County lerk
APPR VED AS TO FORM: a que '"4_p - on
�Z7z Go o,� ✓ ac
ounty Attorney
Frank <'amaguchi
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Mr. Howard never signed this lease. This Resolution was rescinded by
Board action 2/1/89
/'7y
881204
WELD COUNTY OIL AND GAS LEASE
Form #3
(paid up-no warranty)
(small tracts-bid waived)
Containing acres, more or less:
Containing net mineral acres, more or less:
THIS LEASE AGREEMENT, dated this 19th day of December, 1988, made and entered into by and
between WELD COUNTY, COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, for its respective interests,
c/o BOARD OF COUNTY COMMISSIONERS, WELD COUNTY CENTENNIAL CENTER, 915 10TH STREET, GREELEY, CO
80631, hereinafter called Lessor, and:
HOWARD AND ASSOCIATES, LTD.
518 17th STREET, SUITE 640
DENVER, COLORADO 80202
hereinafter called Lessee:
WITNESSETH
WHEREAS, said Lessor, for and in consideration of the sum of TWO HUNDRED DOLLARS
($200.00), in hand paid, of the royalties herein provided, and of the agreements of Lessee
herein contained, hereby grants, demises, leases and lets exclusively unto the said Lessee the
land hereinafter described, for the purpose of investigating, exploring and drilling for,
producing, saving, taking, owning, transporting, storing, handling and treating oil and gas,
together with all rights, privileges and easements useful for Lessee's operations hereunder on
said land and on lands in the same field, including, but not limited to, the following rights:
to lay pipe lines; to build roads; and to construct tanks, pump and power stations, power and
communication lines, and other structure and facilities. The phrase "oil and gas", as used in
this lease, shall embrace all hydrocarbons, as well as other substances produced therewith.
The land included in this lease is situated in Weld County, Colorado, and is described as
follows, to wit:
Township 7 North, Range 58 West, 6th P.M.
Section: 3
Block 11, Lot 27, Baldwin and Whittiers Addition to the Town of Raymer
Block 10, Lot 6, Town of Raymer
and contains acres, more or less, and includes all oil and gas underlying lakes,
streams, roads, easements and rights-of-way which traverse or adjoin said land; and includes
all lands owned or claimed by Lessor as a part of 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 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 continue 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 well 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.
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 term. Lessee may at any tine 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.
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 may be connected. Lessee may from time to time purchase any royalty
oil, paying therefor the market value in the field where produced on the day it is run 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 (1/8) of the amount realized from such sales; (c) On other substances
produced with oil or gas, and covered by this lease, 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
force and effect, Lessee shall pay or tender to Lessor, as royalty, the sum of ONE DOLLAR
($1.00) per acre per year (or the total sum of $50.00, whichever is the greater amount) on the
acreage then held by Lessee hereunder, the first such payment or tender to be made on or
before the anniversary date of this lease; provided, however, that if oil or gas from any such
well is sold or used off the premises before the applicable anniversary date of this lease
(even if such well is again shut in before such date), or if on such date this lease is being
maintained in force and effect other than by reason of such shut in well, Lessee shall not be
obligated to pay or tender, on or before that particular anniversary date, said sum 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 time, Lessee may
remove the pumping unit, rods, tubing and other equipment from the well or wells for use
elsewhere 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 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.
5. Lessee shall have the right to use, free of cost, gas, oil and water produced on
said land for Lessee's operations thereon, except water from the wells of Lessor.
6. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth.
7. No well shall be drilled nearer than 200 feet to any house or barn now on said
premises without written consent of Lessor.
8. Lessee shall pay for damages caused by Lessee's operations to growing crops and
improvements on said land.
9. Lessee shall have the right at any tine to remove all machinery and fixtures 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
chain 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
change 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 of any
other leasehold owner.
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 more 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 of oil and gas, or separately for
the production of either, when in Lessee's judgment it is necessary or 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. The forming or reforming of any
unit shall be accomplished by Lessee executing and filing of record a declaration of such
unitization or reformation, which declaration shall describe the unit. Any unit may include
land upon which a well has theretofore been completed or upon which operations for drilling
881204
have theretofore 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 operations or a well shut in for want
of a market under this lease. In lieu of the royalties elsewhere herein specified, including
shut-in gas royalties, Lessor shall receive on production from the unit so pooled royalties
only on the portion of such 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 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 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 requirements of this lease, express or implied,
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 of such plan or
agreement. 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 and 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.
12. 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.
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 lease shall be binding upon the heirs, personal
representatives, successors and assigns of Lessor and Lessee.
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IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the
BOARD OF COUNTY COMMISSIONERS OF TB2 COUNTY OF WELD, with the seal of the office affixed, and
Lessee has signed this agreement, the day and year first above written.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:
Weld County Clerk and Recorder
and Clerk to the Board
By:
LESSEE:
STATE OF COLORADO )
) SS.
COUNTY OF WELD
The foregoing instrument was acknowledged before me this day of
19 by
Witness my hand and official seal.
My Commission Expires:
Notary Public
s 8812,'24
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