HomeMy WebLinkAbout891076.tiff AR2195857
RESOLUTION
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RE: GRANT EXTENSION OF OIL AND GAS LEASE TO KILROY COMPANY OF
^' O TEXAS, INC.
c 3 WHEREAS, the Board of County Commissioners of Weld County,
• Colorado, pursuant to Colorado statute and the Weld County Home
/4• 4 Rule Charter, is vested with the authority of administering the
a affairs of Weld County, Colorado, and
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m a WHEREAS, Weld County, Colorado, is the holder of a certain
w Oil and Gas Lease currently held by Kilroy Company of Texas, Inc. ,
2g which will expire December 29, 1989, and
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co `� WHEREAS, said lease covers land more particularly described
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as follows:
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� Section 24 : Ni , Township 5 North, Range 61
West of the 6th P.M. , Weld County, Colorado
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WHEREAS, Edward J. Cronin, on behalf of the Kilroy Company of
Z Texas, Inc. , has submitted a request that the Board of County
o4 Commissioners grant an extension of said Oil and Gas Lease, and
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a WHEREAS, pursuant to Weld County' s policy concerning the
r -a extension of Oil and Gas Leases, Edward J. Cronin, on behalf of
CN Kilroy Company of Texas, Inc. , has submitted Three Thousand Five
"' Hundred Twenty and no/100 Dollars ($3,520. 00) , representing Ten
CO w Dollars ($10 .00) per acre minimum bonus and One Dollar ($1 .00) per
acre rental, and
WHEREAS, the Board deems it appropriate to extend said Oil
and Gas Lease with Kilroy Company of Texas, Inc. , to December 29 ,
1990 .
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado, that the extension of the
Oil and Gas Lease with Kilroy Company of Texas, Inc. , to December
29 , 1990 , on the hereinabove described parcel parcel be, and
hereby is, granted.
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RE: EXTENSION OF LEASE - KILROY COMPANY OF TEXAS, INC.
NO
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The above and foregoing Resolution was, on motion duly made
` ' O and seconded, adopted by the following vote on the 9th day of
o October, A.D. , 1989.
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z BOARD OF COUNTY COMMISSIONERS
o a ATTEST: t u,,t) WELD COUNTY, COLORADO
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oO Weld County lerk and Recorder
and Clerk to the Board C.W. Irby, airman
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0 BY: /�7 v J Gene R. Brantner, Pro-Tem
x Deputy County erk �-
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APPROVED AS TO FORM: onstance L. Harbert
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George Ke II y oiL�H
721 County Attorney
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Edward J. Cronin
1660 Lincoln Street 303/860-0606
Suite 1412 303/237-5895
Denver, CO 80264 October 20, 1989
Clerk to the Board
Board of County Commissioners
Weld County, Colorado
P.O. Box 758
Greeley, CO 80632
Dear Tommie,
In following up our recent telephone conversations regarding extension
of the oil and gas lease covering the Nz of Section 24, Township 5 North, Range
61 West, I am enclosing a check from Lomita Operating Company, The Kilroy Com-
pany' s partner in this prospect, in the amount of $3,520.00, as requested.
Please process the board's resolution, and forward to this office a
copy of the recorded resolution as it becomes available.
If I can be of any further assistance in this matter, please call.
Thank you for your help in handling this matter.
Sincerely,
)
Edward J. Cronin
891076
mEmoRAnDum
WilDe Board of
To County Commissioners Data October 6, 1989
COLORADO From Thomas O. David, Weld County Attorney
subject: Request of Edward Cronin
On Monday, October 9, 1989 , there will appear on the agenda the
request of Edward J. Cronin for an extension of an oil and gas
lease on behalf of the Kilroy Company of Texas. The attached
letter from Mr. Cronin sets forth the factual situation. We have
discussed this matter several times with Mr. Cronin and explained
to him the terms of the policy resolution by the Board dated
August 28, 1985 , which allows for an extension of six months and a
bonus of ten dollars per acre and one dollar per acre delayed
rental for the six-month period.
In Mr. Cronin' s letter of August 22 , 1989, he indicated that they
would attempt to commence drilling operations on or before October
15 , 1989, but I am not aware as to whether or not any drilling
operations have been commenced at this time.
Tom
TOD: sa
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EDWARD J. CRONIN
1660 Lincoln Street 7 303/860-0606
Suite 1412 303/237-5895
Denver, CO 80264
August 22, 1989
The Board of County Commissioners
of Weld County, Colorado
P. O. Box 758
Greeley, CO 80632
Re: Weld County Oil & Gas Lease
Maple Prospect
Weld County, CO
Gentlemen:
Reference is made to that certain Weld County Oil and Gas
Lease, dated December 29, 1986, by and between Weld County,
Colorado, as Lessor and the Kilroy Company of Texas, Inc. , as
Lessee, covering the North-half of Section 24, Township 5 North,
Range 61 West.
This lease was issued for a primary term of 3 years and is
due to expire on December 29, 1989. Recently, we inquired about
obtaining an extension of the lease in accordance with the terms
of paragraph 24, which states as follows:
"If Lessee fails to make discovery of oil and gas,
or either of them, in paying quantities during the
primary term hereof, or during drilling operations
commenced during the primary term hereof, Lessee may
make written application to Lessor for an extension of
this lease for a term equal to the primary term as to
all of the mineral acres covered hereby (excluding any
mineral acres theretofore surrendered as in the
SURRENDER Paragraph provided, or assigned as in the
ASSIGNMENTS Paragraph provided) . The granting of such
extension shall be at the sole option of Lessor at
double the rental for the primary term hereof.
We were informed that the extension would be denied, for the
reason of a resolution dated August 28, 1985, which prohibits an
extension of the lease at the terms provided for in paragraph 24
of the subject lease. We were informed,' however, that the County
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would be willing to extend the lease for a 6 month term at a
bonus of $10.00 per acre and the sum of $1 . 00 per acre for
rental.
Currently we are in the process of conducting additional
seismic operations in the prospect that contains the subject
lease. It is our intent to commence drilling operations in the
prospect on or before October 15, 1989. Based on the results of
that well we will then decide whether additional exploration
efforts are necessary.
In order to conduct our operations and protect our acreage
position as well as our investment, we have relied heavily on the
terms of our Oil and Gas lease. Undoubtedly you can appreciate
our dismay in not being able to obtain the extension in
accordance with the terms of paragraph 24 . Granted, paragraph 24
provides for the extension to be granted at your sole option and
there may be some negligence on our part for not reviewing all
the resolutions and ordinances that have been passed by Weld
County concerning oil and gas leasing. We understand your
reluctance to extend the lease based on the stated terms, but we
don' t feel that your reasoning is in accordance with the spirit
and the intent of the lease. Accordingly, we would like to
suggest as a compromise that Weld County grant the Kilroy Company
of Texas, Inc. , a one year extension at a bonus of $5 . 00 per acre
and rental of $2. 00 per acre. Said extension would be subject to
all of the terms and conditions of the December 29, 1986 lease.
Your consideration to our proposal is greatly appreciated.
CERespectfull „
Edward J. Cronin
EJC/hsp
Weld. let
891076
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