HomeMy WebLinkAbout880442.tiff RESOLUTION
RE: APPROVE REQUEST OF WILLIAM G. CREWS , ON BEHALF OF THE ROBERT
GERRITY COMPANY, 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 , William G. Crews , on behalf of The Robert Gerrity
Company, has requested that the bidding procedure be waived
concerning an Oil and Gas Lease on the following described mineral
acres:
Section 21 , Township 5 North, Range 66 West of
the 6th P.M. , Weld County, Colorado, as more
fully described in the attached lease
WHEREAS , after review, the Board found that The Robert
Gerrity Company did show good cause for waiving the bidding
procedure on said Oil and Gas Lease, and
WHEREAS, The Robert Gerrity Company is offering to lease the
above described mineral acres, containing 0 . 44 mineral acres, more
or less, and
WHEREAS, the Board finds that the lease offer from The Robert
Gerrity Company 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 The
Robert Gerrity Company, 3200 Cherry Creek South Drive, Suite 200 ,
Denver, Colorado 80209 , to waive the bidding procedure on an Oil
and Gas Lease concerning the 0 .44 mineral acres , be , and hereby
is, approved.
BE IT FURTHER RESOLVED by the Board that the offer of The
Robert Gerrity Company, as hereinabove stated, be , and hereby is ,
accepted.
880442
Page 2
RE: WAIVE BID - THE ROBERT GERRITY COMPANY
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 6th day of
June, A.D. , 1988 .
BOARD OF COUNTY COMMISSIONERS
ATTEST: WE OUNTY, COLORADO
Weld County C erk and Recorder and Clerk to the Board Gene R. Brant er, Chairman
BY: IC -7ILJ z ft _, W C.W. irby, Pr -
7/ Tem
Deputy County Clerk
EXCUSED DATE OF SIGNING - AYE
APPROVED AS TO FORM: Jacquel ' ne n n
f,
Go ,
4; (, County Attorney
Frank amaguchi
880442
M(2144564
PRODUCERS 88-PAID UP WELD COUNTY OIL AND GAS LEASE
(no warranty)
(small tracts-bid waived)
THIS AGREEMENT, made and entered into this 6th. day of June, 1988, 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, c/o Weld County Centennial Center, 915 10th. Street, Greeley, CO 80631, hereinafter called Lessor, and THE
ROBERT GERRITY COMPANY, a Colorado corporation, 3200 Cherry Creek South Drive, Suite 200, Denver, CO 80209,
oOU hereinafter called Lessee.
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WITNESSETH, that Lessor, for and in consideration of the sun of Two Hundred Dollars ($200), in hand paid, of
U the royalties herein provided, and of the agreements of Lessee herein contained, hereby grants, demises, leases and
q lets exclusively unto the said Lessee the land hereinafter described, for the purpose of investigating, exploring
O W and drilling for, producing, saving, taking, owning, transporting, storing, handling and treating oil and gas,
O together with all rights, privileges and easements useful for Lessee's operations hereunder on said land and on
O a lands in the same field, including, but not limited to the following rights: to lay pipe lines; to build roads; and
W 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
U therewith.
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r✓f The lard included in this lease is situated in Weld County, Colorado and is described as follows, to wit:
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~ x Township 5 North. Range 66 West, 6th. P.M.
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Section 21: That part of the NE'% lying south and east of the existing county road and north and west of a
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CO U line described as follows: Commencing at the NW corner of the NE'% of said Section 21; thence S.
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0°47'40" E. along the west line of the NE'% a distance of 570.25 feet to a point, said point
H being the center line of the existing county road; thence N. 89°12'20" E. a distance of 30 feet
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O E to a point of the east right of way line of the existing county road and the true point of
beginning; thence north and west along the arc of a curve whose radius is 376.50 feet a distance
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of 379.40 feet to a point on the southeast right of way of the existing county road, said point
d,
O 1z] being 120 feet southwest of the county road bridge crossing the Greeley-Loveland Ditch as
ka measured along the existing right of way fence
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ry r•C and contains 0.44 acres, more or less, and includes all oil and gas underlying lakes, streams, roads, easements
O and rights-of-way which traverse or adjoin said land; and includes all lands owned or claimed by Lessor as a part of
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U a any tract above described. This lease shall cover all the interest in said land now owned by or hereafter vested in
Ix Lessor. For the purpose of calculating any payments based on acreage, Lessee, at Lessee's option, may act as if
Ch CO said land and its constituent parcels contain the acreage above stated, whether they actually contain more or less.
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r-I o 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date and as long
p0 k+ 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 continued 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
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880442
the primary term of this lease, this lease shalt 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 time 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.
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CD U 3. Royalties to be
O oy paid Lessor are: (a) on oil, one-eighth (1/8) of that produced and saved from said lands,
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to be delivered at the wells or to the credit of Lessor into the pipe line to which the wells may be connected.
U 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
o W substances, produced from said land and sold or used off the premises, the market value at the well of one-eighth
O 3 (1/8) of the gas so sold or used, provided that on gas sold at the well the royalty shalt be one-eighth of the
a the amount realized from such sales; (c) on other substances produced with oil or gas, and covered by this lease,
o: W 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
P4 and/or gas is not being sold or used off the premises, and this Lease is not being otherwise maintained in full
O force and effect, Lessee shallroyalty, the sum of One Dollar ($1.00) per acre per year
U pay or tender to Lessor, as
ri (or the total sum of $50.00, whichever is the greater amount) on the acreage then held be Lessee hereunder, the
rn 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
a (even if such well is again shut in before such date), or if on such date this Lease is being maintained in force
14 and effect other than by reason of such shut in well, Lessee shall not be obligated to pay or tender, on or before
oou that particular anniversary date, said sun as shut in royalty. If such payment or tender is made, it will be
considered that oil and/or gas,
co z as applicable, is being produced within the meaning of this lease. During such
t--1H 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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a4. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple
est.VD W estate therein, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said
LO Lessor only in the proportion which Lessor's interest bears to the whole and udivided fee.
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ni z 5. Lessee shall have the right to use, free of cost, pr
oduced• ry g gas, oil and water on said land for Lessee's
O operations thereon, except water from the wells of Lessor.
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az 6. When requested by Lessor, Lessee shall bury Lessee's pipe Lines below plow depth.
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7. No well shall be drilled nearer than 200 feet to any house or barn now on said premises without written
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consent of Lessor.
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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 time to remove all machinery and fixture 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 change 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 chain 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
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880442
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 or 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 pert of the land described herein and as to any
O one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by
crio U - this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas, or
separately for theproduction or either, when in Lessee'snecessary
ePa Y judgment it is or advisable to do so, and
rn O irrespective of whether authority similar to this exists with respect to such other land, lease or leases.
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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 p ng of any unit shall be accomplished by Lessee executing and filing
o 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 have theretofore
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N. W 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
O operations or a well shut in for want of a market under this tease. In lieu of the royalties elsewhere herein
W specified, including shut-in gas royalties, Lessor shaLL receive on production from the unit so pooled royalties
I14 only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit
•• 'a production that the total number of surface acres covered by this lease and included in the unit bear to the total
tinumber 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
co I-1 in the same general area by entering into a cooperative or unit plan of development or operation approved by any
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governmental authority and, from time to time, with like amodify, change any pl
an approval, to or terminate such or
op z agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to conform
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W to the terms, conditions and provisions of such approved cooperative or unit plan of development or operation and,
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o to particularly, all drilling and development requirements of this lease, express or impled, shall be satisfied by
P4 compliance with the drilling and development requirements of such plan or agreement, and this lease shall not
mrterminate or expire during the life of such plan or agreement. In the event that said above described lards or any
ut Gw part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby
ND the production therefrom is allocated to different portions of the land covered by said plan, then the production
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Z allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to
o Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to
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any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only
W 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.
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12. All express or implied covenants of this lease shall be subject to all Federal and State laws, executive
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orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in
0164 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 teased 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. Lessor recognizes that the surface owner of the WINES has the right, under that certain oil and gas lease
recorded in Book 1194 under Rec. No. 2139206, to use gas, free of cost, from any well which Lessee may drill in the
NE'&NE'A, for the purpose of domestic use in the existing dwellings located in the NE'A of said Section 21. Lessor
hereby waives any right it may have to landowner royalty on free gas so used.
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880442
15. All of the provisions of this lease shall be binding upon the heirs, personal representatives, successors
and assigns of Lessor and Lessee.
L P 0 IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
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BOARD OF COUNTY COMMISSIONERS
a
o uELD/r TY, COLORADO
o ain- PI
ATTEST: • <"�'� - J '
w9C c/
Nai f •,..qa, .• 7V'4,e O r Y �rN Weld County ClerKapd'ke�'gordeP�" �1 ING
a and clerk td t� B ,a4 t'> ;— JACQUELINE JOHN `B
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—I H LESSEE:
V)W
• E
O U) THE ROBERT GERRITY COMPANY
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William G. Crews, Attorney-in-Fact
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STATE OF WELD
,.. ) ss. Acknowledgment
rn N COUNTY OF COLORADO
PO N The foregoing instrument was acknowLedged before me this CO YA� day of June, 1988, by William G. Crews as
Attorney-in-Fact for The Robert Gerrity Campany, a Colorado corporation, on behalf of said corporation.
Witness my hand and official seal.
MyQ '
c,oImm000Q'is,sion expires:
"ail)/ 15-N l9`l L Notary Public
J/ \\QI AT, •
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880442
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE,SUITE 2
GREELEY COLORADO 80631
(303)351-0733 GREELEY
(303)659-7710 DENVER
May 31, 1988 1 MAY 3 1-198a
Clerk to the Board of ---
Weld County Commissioners
Centennial Building
915 10th. Street
Greeley, CO 80631
This is to request a hearing on Monday, June 6 at 9:00 a.m. before the Board
of Weld County Commissioners in order to request a waived bid paid-up oil and
gas lease from Weld County covering less than one acre in the NE$ of St Lion
21, Township 5 North, Range 66 West for The Robert Gerrity Company.
A copy of the proposed leasn, in the County form, is enclosed herewith.
Plean bring the provisions of Paragraph 14 of the proposed lease to the
attention of the Board, since it is a special provision unique to this
situation. I am providing Tom David with a copy of the proposed leas= in
order that he may review the special paragraph prior to the requested meeting.
Your scheduling of my appearance before the Board will be sincerely
appreciated.
Cordially,
William G. Crews, CPL
cc: Thomas David, Esq.
County Attorney
Weld County
WGC/mm
880442
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE SUITE 2
GREELEY,COLORADO 80631
(303)351-0733 GREELEY
(303)6597710 DENVER
June 8, 1988
Tommie Antuna
Clerk to the Board's Office
Weld County Camnissioners
Centennial Building
915 10th. Street
Greeley, CO 80631
Tear Runde:
Enclosed please find two originals of the oil and gas lease to The Robert
Gerrity Company (waived-bid) which was approved at the June 6 meeting of the
commissioners, along with Gerrity's check no. 2489 in the amount of $200 as
required.
As you will note, I have already executed the lease originals on behalf of
Gerrity. After execution by the CatmLissioners, please return the recorded
lease and resolution copies directly to me at the above address. If you have
any questions, please let me know.
Regards,
William G. Crews, CPL
Attorney-in-Fact for
The Robert Gerrity Company
enclosures
WGC/tmn
880442
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