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HomeMy WebLinkAbout890569.tiff RESOLUTION RE: APPROVE POOLING AGREEMENT BETWEEN WELD COUNTY, COLORADO, GUTTERSON AND COMPANY, WEST GREELEY FARMS, AND HENRY F. KOHLHOFF AND ERMA KOHLHOFF AND PANCANADIAN PETROLEUM COMPANY 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, Colorado, Gutterson and Company, West Greeley Farms, and Henry F. Kohlhoff and Erma Kohlhoff are the owners of the royalty interest in the Leases on property located in the Si Section 4 and Ni Section 9 , Township 7 , Range 63 West of the 6th P.M. , Weld County, Colorado, and WHEREAS, the Board has been presented with a Pooling Agreement between Weld County, Colorado, Gutterson and Company, West Greeley Farms , and Henry F. Kohlhoff and Erma Kohlhoff and PanCanadian Petroleum Company, and WHEREAS, the terms and conditions of said Pooling Agreement are as stated in the Agreement, a copy of which is attached hereto and incorporated herein by reference, and WHEREAS, after study and review, the Board deems it advisable to approve said Pooling Agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Pooling Agreement between Weld County, Gutterson and Company, West Greeley Farms , and Henry F. Kohlhoff and Erma Kohlhoff and PanCanadian Petroleum Company be , and hereby is, approved. 890569 Page 2 RE: POOLING AGREEMENT - PANCANADIAN PETROLEUM COMPANY The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 5th day of July, A.D. , 1989 . 2<.v1i (er-) BOARD OF COUNTY COMMISSIONERS ATTEST: �' WELD COUNTY, COLORADO Weld County lerk and Recorder -;?1'"/ and Clerk to the Board C.W. Kirby, Chairman inen n, Pro-Tem Deputy Count erk APPROVED AS TO FORM: Gen . Brantner l � -- eorge K nne y �- County Attorney God a v/ 890569 POOLING AGREEMENT This agreement is made and entered into this 20th day of June, 1989 by and among Weld County, Colorado, Gutterson and Company, a Colorado Limited Partnership, West Greeley Farms, a Colorado General Partnership, and Henry F. Kohlhoff & Erma Kohlhoff, hereinafter collectively referred to as "Lessors, " and PanCanadian Petroleum Company, a Canadian corporation, hereinafter referred to as "Lessee. " WHEREAS, Lessee is the owner of the working interest in those certain oil and gas leases (the "Leases") described below and the Lessors are the owners of the royalty interest in the Leases as indicated below, to wit: Weld County, Colorado Recording Lessor Date of Lease Book, Reception Number Weld County, CO 12-29-86 1141, 02083255 Weld County, CO 12-29-86 1141, 02083254 Gutterson & Company 12-11-86 1139, 02082020 West Greeley Farms 12-09-86 1138, 02079839 Henry F. Kohlhoff & Erma Kohlhoff 12-09-86 1138, 02079838 WHEREAS, the parties desire to consolidate and pool their respective interests in the above described Leases insofar and only insofar as the Leases cover all depths and formations lying under the South-half of Section 4 and the North-half of Section 9 all located within Township 7 North, Range 63 West, Weld County, Colorado (hereinafter referred to as the "Pooled Area") . NOW, THEREFORE, in consideration of the premises the parties hereto agree as follows: 1. Pooled Area. The parties hereto do hereby consolidate and pool their interest in the Pooled Area for the exploration, development and production of oil, gas and related hydrocarbons. The parties execute this instrument as a formal declaration that the royalty and working interest under the Leases covering the Pooled Page 1 of 4 890569 Area are hereby combined and pooled for the production of oil and gas under the provisions of each of the Leases. 2 . Allocation of Production and Costs. The Pooled Area shall be comprised of three tracts as follows: A. Tract A: Township 7 North. Range 63 West Section 4: S/2 B. Tract B: Township 7 North, Range 63 West Section 9: NE/4, S/2 NW/4 C. Tract C: Township 7 North. Range 63 West Section 9: N/2 NW/4 Oil and gas produced from the Pooled Area will be allocated to each Tract in the Pooled Area in the proportion which the surface acreage of that Tract bears to the total surface acreage within the Pooled Area. Royalty will be paid on the production allocated to each separate Tract in accordance with the terms of the Lease covering that Tract. Costs of operations on the Pooled Area and the working interest share of production shall be allocated to each separate Tract in the proportion which the surface acreage of that Tract bears to the total surface acreage within the Pooled Area. The production of oil, gas, casinghead gas and other hydrocarbon substances from the Pooled Area shall be taken and accepted as production under the terms of each of the Leases within the Pooled Area above described. Such production shall have the effect of continuing each of the Leases described above in full force and effect as though production had been secured separately from each of the Leases described in accordance with the terms and provisions of each such respective Lease. 3 . Term. This agreement shall be effective June 15, 1989 and so long thereafter as the Leases subject to this Agreement remain in full force and effect as to the Pooled Area. 4. Counterpart Execution. This Agreement may be executed in any number of counterparts, all of which shall constitute one document and shall be effective upon each party executing this Agreement from the date set forth above, regardless of the individual date of execution by any of the parties, and regardless of whether all parties have executed this Agreement. 890569 Page 2 of 4 IN WITNESS WHEREOF, this instrument is executed as of this 5th day of July , 1989, but effective as herein provided. ATTEST: LESSOR: Weld County lerk and Recorder BOARD OF COUNTY COMMISSIONERS and Clerk to the rd WELD COUNTY, COLORADO l— ATTEST: GUTTERSON & COD ANY, A COLORADO LIMITED PARTNERSHIP Secretary By: Michael Gutterson, Sr. , General Partner WEST GREELEY FARMS, A GENERAL PARTNERSHIP Partner Partner Partner Partner Partner Partner HENRY F. KOHLHOFF and ERMA KOHLHOFF LESSEE: PANCANADIAN PETROLEUM COMPANY Attorney-in-Fact Page 3 of 4 890569 Individual STATE OF ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1989, by Notary Public My Commission Expires: STATE OF ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1989, by Notary Public My Commission Expires: Corporate STATE OF ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1989, by , of , a Delaware corporation, on behalf of the corporation. Notary Public My Commission Expires: STATE OF ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1989, by , of , a Delaware corporation, on behalf of the corporation. Notary Public My Commission Expires: Page ;i of 4 83(i569 518 17th STREET e'Gn.G SUITE 460 PETROLEUM LAND SERVICES DENVER, CO 80202 (303)629-0999 June 26, 1989 Mr. Thomas David c/o County Attorney office JUN 2 6 1839 P. 0. Box 1948 Greeley, Colorado 80632 U -- WELC7 CO )h1T RE: Pooling Agreement in ORNEY'S Q 'ICE TOWNSHIP 7 NORTH. RANGE 63 WEST. 6th P. M. Section 4: Si Section 9: Ni Dear Mr. David: As per our recent phone conversation, enclosed please find a Pooling Agreement. Union Pacific Resources Company proposes to drill an approximate 8,900' Lyons formation test well in the SW* SE* of Section 4-T7N-R63W. UPRC's geological staff believes that should production be established in this well , the gas reservoir will encompass a 640 acre area under Ni of Section 9 and the Si of Section 4 to the north. In order to economically pursue this exploration proposal UPRC wants to pool or combine the mineral ownership in the 640 acre area. As you are probably aware, deep gas tests in this area are often spaced by the state on 640 acre basis within the governmental section. UPRC is therefore asking everyone in the S3 of said Section 4 and the N3 of said Section 9 to sign this pooling agreement to pool the 640 acres together to form a single drilling unit. Your royalty will be proportionately shared with the other mineral owners, but will not be any less than if a well in your section were spaced by the state on 640 acres. As we discussed, UPRC does not believe that this area will justify the drilling of two wells. Please have the Pooling Agreement executed the same way you would execute a Oil and Gas Lease on page three and have the agreement notarized on page 4. If you or anyone else have any questions regarding this matter, do not hesitate to call me collect at (303) 0999. Thank you for your cooperation in this matter. Very truly yours, .fie_ Dennis D. Hansen, Landman /`:>C1 89 )569 Hello