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Home My WebLink About850016.tiff RESOLUTION RE: APPROVE REQUEST OF MAYERS & COMPANY TO WAIVE BIDDING PROCEDURE CONCERNING AN OIL AND GAS LEASE AND ACCEPT LEASE PROPOSAL 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, Mayers & Company has requested that the bidding procedure be waived concerning an Oil and Gas Lease on the following described mineral acres: Township 5 North, Range 67 West, 6th P.M. Section 33 : That part of the SW/4 lying South and West of the railroad Weld County, Colorado Contains 6 . 80 acres, more or less. WHEREAS , after review, the Board of County Commissioners found that Mayers & Company, did show good cause for waiving the bidding procedure on said Oil and Gas Lease, and WHEREAS, Mayers and Company is offering to lease the above described mineral acres, containing 6 .80 acres , more or less, and WHEREAS, the Board finds that the lease offer from Mayers and Company in the amount of SIX HUNDRED EIGHTY AND NO/100 DOLLARS ($680 .00) is acceptable, with further terms and conditions being as stated in the Oil and Gas Lease, a copy of which is 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 Mayers & Company, 5500 South Syracuse Circle, Woodside Plaza, Suite 118 , Englewood, Colorado 80111 , 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 Mayers and Company, as hereinabove stated, be, and hereby is, approved. 850016 Page 2 RE: WAIVE BID PROCEDURE - MAYERS & COMPANY The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 14th day of January, A.D. , 1985 . BOARD OF COUNTY COMMISSIONERS ATTEST: �'ea -- WELD COUNTY, COLORADO Weld County Clerk and Recorder ,yy, \� • and Clerk to the Board J que ine Jo' n•on, Chairman ___` / 7- BY. 0-214_0(..: ,j ( tc,,u&) Gene R. f , Pro-Temntner De uty County Cl k Le /7,AL--t LPL/ APPROVED AS TO FORM: C.W. Kirb . /2 - , C 2 C,ST.;: W'. ac I % r, ;;; ;20,j;:://2 County Attorney Frank am chi AR199s462 WELD COUNTY COLORADO OIL IMO CAS LEASE THIS AGREEMENT made this 14thday of January , 19 85 between Weld County, Colorado, a political subdivision of the State of Colorado, by the Board of County Commissioners, for its respective interests, C/0 Board of County Conmis- sioners, Weld County Centennial Canter, ?15 I)th Street, 5reeley, Colorado 80631 , Lessor (whether one or more), and Mayers & Company, /Englewood, Colorado , 80111 Lessee, WITNESSETH: m O 55q9 § S AyEcA9y49a.Wyrje7enoodside Plaza3 Suite 118 Dollars (S 10.00 )• oU in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and ,-i O producing oil, gas and other nyarocaroons, laying pipe lines, building tanks, power stations, telephone lines and other U structures thereon to produce, save, take care of, treat, transport and own said products, and housing its employees, A (subject to all applicable Weld County Zoning Regulations), the following tract of land with any reversionary rights ,. therein being situated in the County of Weld, State of Colorado, and described as follows: g 3 Township 5 North, Range 67 West, 6th P.M. : Section 33: Beginning at the Southwest corner of • said Section 33; Thence North on the West line of said Section 33 for a distance of 1,242 feet to the West line of The Great Western Railway Company's right—of—way; Thence Southerly 40 feet afrom and parallel to the centerline of said railway right-of-way for a distance of 1,419 feet O to the South line of said Section 33; Thence West on said South section line 400 feet to the W place of beginning. ix to and containing 6.80 acres, more or less ( 6.80 net mineral acres). ~ x CO 2. Subject to the other provisions nerein contained, this lease shall be fora term of 3 years from this date pa (called "primary term") and as long thereafter as oil, gas or other hydrocarbons, is produced from said land hereunder, in or drilling or reworking operations are conducted thereon. co Lp z 3. The royalties to be paid by Lessee are: (a) on oil , 21% -of that produced and saved from said land, the H same to be delivered at the wells, or to the credit of Lessor into the pipe line to which the wells may be connected; 1X Lessee may from time to time ourchase any royalty oil in its possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other hydrocarbon sub- astance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other products therefrom, the market value at the well of 21% of the gas so sold or used, provided that on gas sold at the N wells the royalty shall be 21% of the amount realized from such sale; on sulfur the royalty shall be fifty Lo W Ga cents (sot) per long ton. Lessee shall have free use of oil , gas, coal, wood and water from said land, except water in from Lessor's wells, for all operations hereunder, and the royalty on oil and gas shall be computed after deducting o Z any so used. If a well capable of producing gas in paying quantities is completed on the above described land and is • shut in, this lease shall continue in effect for a period of one year from the date such well is shut in. Lessee or any assignee may thereafter, in the manner provided herein for the payment or tender of delay rentals, pay or tender to Lessor as royalty, on or before one year from the date such well is shut in, the sum of $100.00 per well , and, if U fx such payment or tender is made, this lease shall continue in effect for a further period of one year. In like manner. • G] and upon like payments or tenders annually, made on or before each anniversary of the shut-in date of such well, this lease shall continue in effect for successive periods of twelve (12) montns each. U1 N u1 .-1 4. If operations for drilling are not commenced on said land as hereinafter provided, on or before one year from O V' this date, the lease shall then terminate as to both parties, unless on or oefore such anniversary date Lessee shall `i nay or tender to Lessor, and shall continue as the depository for all rentals payable hereunder regaraless of changes p0 Ga in ownership of said land or the rentals either by conveyance or by the death or incapacity of Lessor, the sum of One _Dollar(s) ($1.00 ) per net mineral acre, (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for a period of twelve (12) months. In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the primary term. The payment or tender of rental herein referred to may be made in currency, or check at the option of the Lessee; and the depositing of such currency, or check in any post office, properly addressed to the Lessor, on or before the rental paying date, shall be deemed pay- ment as herein provided. The down cash payment is consideration for the lease according to its terms and shall not he allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations as to the acreage surrendered, and thereafter the rentals payable hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or releases. 5. Should any well drilled on the above described land during the primary term before production is obtained be a dry hole, or should production be obtained during the primary term and thereafter cease, then and in either event, • if operations for drilling an additional well are not commenced or operations for reworking an old well are not pur- sued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease 'shall terminate unless Lessee, on or before said date, shall re- sume the payment of rentals. Upon resumption of the payment of rental, Section 4 governing the payment of rentals, • shall continue in force just as though there had been no interruption in the rental payments. If during the last year of the primary term and prior to the discovery of oil, gas, or other hydrocarbons on said land Lessee should drill a dry hole thereon, or if after discovery of oil, gas or other hydrocarbons before or during the last year of the primary term the production thereof should cease during the last year of said term from any cause, no rental payment • or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the expiration of the primary term, Lessee is conducting operations for drilling a new well or reworking an old well, this lease nevertheless shall continue in force as long as such drilling or reworking operations continue, or if, after the expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue in force if drilling or reworking operations are commenced within sixty (60) days after such cessation of production; if pro- duction is restored or additional production is discovered as a result of any such drilling or reworking operations, conducted without cessation of more than sixty (60) days, this lease shall continue as long thereafter as oil , gas, other hydrocarbons or other mineral is produced and as long as additional drilling or reworking operations are had without cessation of such drilling or reworking operations for more than sixty (60) consecutive days. 6. Lessee,at its option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, as to oil and gas, or either of them, with any other land lease or leases when in Lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said premises, such pooling to be into a well unit or units not exceeding forty (40) acres, plus an acreage tolerance of ten per cent (10%) of forty (40) acres, for oil, and not exceeding six hundred and forty (640) acres, plus an acreage tolerance of ten per cent (10:) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to any spacing or well unit pattern that may be prescribed by governmental authorities having jurisdiction. Lessee may pool or com- bine acreage covered by this lease, or any portion thereof, as above provided, as to oil or gas in any one or more strata, and units so formed need not conform in size or area with the unit or units into which the lease is pooled or combined as to any other stratum or strata, and oil units need not conform as to area with gas units. The pooling in one or more instances shall not exhaust the rights of the Lessee hereunder to pool this lease or portions thereof into other units. Lessee shall execute in writing and place of record an instrument or instruments identifying and describ- ing the pooled acreage. The entire acreage so pooled into a unit shall be treated for all purposes, except the payment of royalties, as if it were included in this lease, and drilling or reworking operations thereon or production of bil or gas therefrom, or the completion thereon of a well as a shut-in gas well, shall be insiiered for all purposes, except the payment of royalties, as if such operations were on or such production werle)from .r completion were on the land covered by this lease, whether or not the well or wells be located on th ;remises covered by this lease. In lieu of the royalties elsewhere herein specified, Lessor shall receive from a un'._. so fe ned, only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein bears to the total acreage so pooled in the particular unit involved. Should ar.y unit as originally created hereunder con- tain less than the maximum number of acres hereinabove specified, then Lessee may at any time thereafter, whether before or after production is obtained on the unit, enlarge such unit by adding additional acreage thereto, but the enlarged unit shall in no event exceed the acreage content hereinabove specified. In the event an existing unit is so enlarged, Lessee shall execute and place of record a supplemental declaration of unitization identifying and describing the land added to the existing unit; provided, that if such supplemental declaration of unitization is not filed until after production is obtained on the unit as originally created, then and in such event the supplemental declaration of unitization shall not become effective until the first day of the calendar month next following the filing thereof. In the absence of production Lessee may terminate any unitized area by filing of record notice of termination. 7. Lessee also shall have the right to unitize, pool, or combine all or any part of the above described lands 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 al- located 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. 8. Lessee shall have the right at any time without Lessor's consent to surrender all or any portion of the leased premises and be relieved of all obligation as to the acreage surrendered. Lessee snail have the right at any time during or after the expiration of this lease to remove all property and fixtures placed by Lessee on said ri o land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines o U below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any residence or barn now on said land without Lessor's consent. The Lessee agrees to promptly pay to the owner thereof any damages to crops, N o or improvements, caused by or resulting from any operations of Lessee. All disturbed portions of surface land are c...) to be returned to original condition within time designated by Lessor. • 9. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, successors and assigns of the parties hereto, but no change or division in ownership of the land, o3 rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. • No change in the ownership of the land or any interest therein, shall be binding on Lessee until Lessee shall be o a furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence ▪ i''l of any transfer, inheritance, or sale of said rights. In event of the assignment of this lease as to a segregated aportion of said land, the rentals payable hereunder shall be apportionable among the several leasehold owners rataoly o according to the surface area of each, and default in rental payment by one shall not affect the rights of other lease- U• hold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obli- pG gations with respect to the assigned portion or portions arising subsequent to the date of assignment. •• '.a 10. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive . x Orders, Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in cc damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any W Such Law. Order, Rule or Regulation, or if prevented by an act of God, of the public enemy, labor disputes, inability tm a to obtain material, failure of transportation, or other cause beyond the control of Lessee. co U If during the term of this lease, oil or gas or other hydrocarbons is discovered upon the leased premises, but • z Lessee is prevented from producing the same by reason of any of the causes set out in this Section, this lease shall H nevertheless be considered as producing and shall continue in full force and effect until Lessee is permitted to pro- • ". W duce the oil, gas and other hydrocarbons, and as long thereafter as such production continues in paying quantities o p or drilling or reworking operations are continued as elsewhere herein provided. I24 W 11. Lessor does not warrant title to said real estate or to the mineral interests in said real estate, however, • N D it is agreed that if Lessor owns less than 100% of the minerals, then, and in that event, the royalties and rentals to • wbe paid Lessor shall be reduced proportionately. T M z 12. Not withstanding in a provision of this lease to the contrary, no operations shall be conducted on the above 0 >i described land without the written consent of the Lessor. () Z W �.'� 13. Upon the termination of this lease in whole or in part by election or by failure to make payments as afore- A~ said, Lessee or its assigns shall within thirty (30) days release by written instrument the land or portion thereof u1 ri which said lease terminates, and said notice shall also be sent to Lessor giving the book and page number of said rn ti lease. It is expressly understood that this lease is subject to and controlled by any law of the State of Colorado now in effect restricting or limiting the powers of counties or boards of county commissioners, and any provision ~ H herein in conflict therewith shall be inoperative and void. pa tr. 14. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators, successors and assigns. -2- 7 - CO o t) o 15. This agreement shall be binding on each of the above named parties who sign the same, regardless of whether 'O it is signed by any of the other parties. fn IN WITNESS WHEREOF, this instrument is executed on the date first above written. - Q BOARD OF COUNTY COMMISSIONERS oo 3 WELD COUNTY, COLQRADO in- W r,� Q a r o y/Jy,',�_ W ATTEST: ' - �•�•y �. ��” ,3 Weld County Cl k a 4 fo , and Clerk to the rd mac — a ' aa co utN(c.v 1/40 zH ATTES . f�i S LESSEE MAYERS & OMP. Y E By C&ttneen..L.„ • tn.V a Assistant Secretary o �sident W Lessee's Address: 5500 South Syracuse Circle w STATE OF COLORADO ) Woodside Plaza, Suite 118 - SS rn Z COUNTY OF WELD ) Englewood, Colorado 80111 � Z � I o The foregoing instrument was acknowledged before me this day of 19 , by U fx My commission expires: Witness my hand and official seal. u1 ri o vI Notary Public STATE OF COLORADO) )ss. COUNTY OF Asia/4144g The foregoing instrument was acknowledged before me this 14th day of January, 1985, by Lawrence M. Mayers, as President of MAYERS & COMPANY, a Colorado corporation, on behalf of the corporation. My commission expires: Witness my hand and official seal. fSmmTikll..,#.November 15,1988 5500 St Syracuse pr. 0 118 /j. 1�„r. c Englewood,CO 80111 Notar Pub≥lc f Cr- cam' ��' Qt. . ,, t't��'/,p F,C0 1 11`x.. 1 t t -3- LAW OFFICES PETER J.WALL BURNS, WALL,SMITH AND MUELLER TELEPHONE GREGORY J.SMITH 303 H30-7000 GEORGE W.MUELLER SUITE BOO JAN B.DE E-GRAHAM OF COUNSEL RICHARD T.CARROLL 303 EAST SEVENTEENTH AVENUE THOMAS M.BURNS L A.MAXWELL JAMES E. DENVER,COLORADO 80203 THOMAS J.FILES JAMES FRANK H.HOUCK ROUSE P. K STEVEN F.MUELLER LYNN R.CARDEY-YATES JOHN 0T CARVER ". M try,'" ROBERT T.CARVE ROVE ��LLC66IT MARK A.FOGG December 27, 1984 Qrn.,yS DEC 2 87984 7% Clerk to the Board of County Commissioners Weld County, Colorado P. O. Box 758 Greeley, Colorado 80632 Re: Township 5 North, Range 67 West, 6th P.M. Section 33 : That part of the SW/4 lying South and West of the railroad Weld County, Colorado Dear Sir or Madam: This firm represents Mayers & Company, a Colorado corporation, which is in the process of acquiring oil and gas leases covering the S/2 of Section 33, Township 5 North, Range 67 West, 6th P.M. We understand that Weld County owns that part of the SW/4 of said Section 33 lying South and West of the railroad, and containing 6 or 7 acres, more or less . Mayers & Company would be interested in obtaining a three-year oil and gas lease from the county, in consideration of a bonus of $100 per net mineral acre, a royalty of 16% and an annual delay rental of $1. 00 per net mineral acre. These figures are open to negotiation. Mayers & Company should own the leasehold rights in the "J" Sand formation underlying the entire balance of the S/2 of Section 33 (approximately 313 or 314 of the 320 acres) by January 13, 1985, and therefore requests that bidding on a lease from the county be waived. We ask that this matter be brought up for the Board' s consideration as soon as possible and that we be notified when the matter has been put on its agenda. BURNS, WALL, SMITH AND MUELLER Clerk to the Board of County Commissioners December 27 , 1984 Page 2 If you have any questions with regard to this matter, please feel free to contact me. Very truly yours, BURNS, WALL, SMITH AND MUELLER r -17_...- C 4-A Bt—d9 E. Bosik JEB:dc cc: Mayers & Company Attn: Lawrence M. Mayers President LAW OFFICES PETER J.WALL BURNS,WALL,SMITH AND MUELLER TELEPHONE GREGORY J.SMITH 303 890-7000 GEORGE W.MUELLER SUITE 000 OF C EL JAN ARRELPAHAM 303 EAST SEVENTEENTH AVENUE THOMAS M.BURNS RICHARD T A.CA MARRELL MICHAEL L A.MAXWELL DENVER COLORADO 80203 THOMAS J.FILES JAMES P.ROUS FRANK H.HOUCK STSTEVEMES P..MUELLER LYNN R.N ARDE YA LYNN R.CARDEY-YATES JOHN D.CARVER `M ROBERT T.COSGROVE qt llE MARK A.FOGG December 28 , 1984 ((f e,Q lOTy 44 Clerk to the Board of County Commissioners Weld County, Colorado 3198$ P. O. Box 758 G�^ Greeley, Colorado 80632 co; Attention: Mary Reiff Re: Township 5 North, Range 67 West, 6th P.M. Section 33: That part of the SW/4 lying South and West of the railroad Weld County, Colorado Dear Sir or Madam: To confirm my telephone conversation of this date with Mary Reiff, I, along with one or more officers of Mayers & Company, will be present at the meeting of the Board of County Commissioners scheduled for January 14 , 1985 at 9 :00 a.m. at 915 10th Street, Greeley, Colorado, so that the matter of Mayers & Company obtaining an oil and gas lease from the County on the captioned lands may be discussed. At such time, we will present to the Board two copies of the proposed lease executed by Mayers & Company, calling for a three-year primary term, a 16% royalty and an annual delay rental of $1.00 per net mineral acre. We will also have in hand a check payable to the Weld County Board of Commissioners in the sum of $680.00, representing a bonus of $100. 00 per net mineral acre. If you should have any questions with regard to this matter prior to the January 14th meeting, please feel free to contact me. Very truly yours, BURNS, WALL, SMITH AND MUELLER J es E. Bosik JEB:dc cc: Mayers & Company Attn: Lawrence M. Mayers President LAW OFFICES PETER J.WALL BURNS,WALL,SMITH AND MUELLER TELEPHONE GREGORY J.SMITH 303 H30-7000 GEORGE W.MUELLER SUITE BOO JAN B.DELBRIOGE-GRAHAM OF COUNSEL RICHARD T.CARROLL 303 EAST SEVENTEENTH AVENUE THOMAS M.BURNS MICHAEL A.MAXWELL DENVER,COLORADO 80203 THOMAS J.FILES JAMES E.BO SIK FRANK H.HOUCK JAMES P.ROUSE STEVEN F.MUELLER LYNN R.CARDEY-TATES JOHN D.CARVER ROBERT T.COSGROVE MARK A.FOGG January 3, 1985 U Clerk to the Board of County Commissioners ,'in Weld County, Colorado JAN 748 P. 0. Box 758 Greeley, Colorado 80632 ►. Attention: Mary Reiff Re: Township 5 North, Range 67 West, 6th P.M. Section 33 : That part of the SW/4 lying South and West of the railroad Weld County, Colorado Dear Sir or Madam: Please note that my letter to you dated December 28 , 1984 , regarding the matter of Mayers & Company obtaining an oil and gas lease from the County on the captioned lands, erroneously stated that such lease would provide for a 16% royalty. The correct amount of royalty in the lease shall be 21%. All other proposed lease terms set forth in the letter remain the same. If you have any questions with regard to this matter, please feel free to contact me. Very truly yours , BURNS, WALL, SMITH AND MUELLER ByO,-,,,---- J es E. Bosik JEB:dc cc: Mayers & Company Attn: Lawrence M. Mayers President Hello