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HomeMy WebLinkAbout880893.tiff 1 RESOLUTION RE : APPROVE PARTIAL RATIFICATION OF OIL AND GAS LEASE AND AUTHORIZE CHAIRMAN TO SIGN 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 is the Lessor of a certain oil and gas lease , with Charter Exploration and Production Company as Lessee , said lease having been recorded at Book 751 , Reception Number 1673042 , in the records of the Weld County Clerk and Recorder , and WHEREAS , the Board has been presented with a Partial Ratification of said lease , concerning only the Si of Section 8 , Township 8 North , Range 59 West of the 6th P . M . , Weld County , Colorado , and WHEREAS , after review , the Board deems it advisable to approve said Partial Ratification , a copy cf which is attached h ereto and incorporated herein by reference . NOW , THEREFORE , BE IT RESOLVED by the Board of County Commissioners of Weld County , Colorado , that the aforementioned P artial Ratification of Oil and Gas Lease be , and hereby is , approved . BE IT FURTHER RESOLVED by the Board that the Chairman be , and h ereby is , authorized to sign said Partial Ratification . The above and foregoing Resolution was , on motion duly made and seconded , adopted by the following vote on the 7th day of September , A . D . , 1988 . BOARD OF COUNTY COMMISSIONERS ATTEST : WEI UNTY , COLORADO Weld County Clerk and Recorder and Clerk to the Board ene R . Brantner , Chairman 7-//Xte #4-11 BY : Ati ! C . W • Kirby , Pro - em Deputy County Clerk EXCUSED APPROVED AS TO FORM : Jacqueline ohnson i Go • 91 t County Attorney _ at ' �.-��. _ . . �,,� Frank Yamaqucb; isse. 00e7 e eeeeses, 880893 AR2154926 PARTIAL RATIFICATION OF OIL AND GAS LEASE KNOW ALL MEN BY THESE PRESENTS: THAT, WHEREAS, Heretofore under date of the 25th day of August, 1978 , a certain oil and gas lease was made , executed, and delivered by Weld County, Colorado, as Lessor, to Charter Exploration and Production Company, as Lessee, including the following described lands in Weld County, State of Colorado, to-wit: Township 8 North, Range 59 West Sec. 8 : S/2 said lease having recorded in Book 751 , Reception Number 1673042 , of the records in the office of the Register of Deeds in and for said County, reference to said being hereby made for all purposes. NOW THEREFORE, in consideration of the sum of One Dollar ($1 .00) and other valuable consideration, the receipt and mw sufficiency of which are hereby acknowledged, we, the undersigned, ,.„- and each for himself and herself, as the case may be, do hereby CO N o ratify, adopt, and confirm the above described portion, and only Loco the above described portion, of the hereinabove-described oil and gas lease in all of its terms and provisions and do hereby lease, demise and let said land and premises unto the said lessee hereinabove-named, his assigns and successors in interest, as y t•; fully and completely as if we had originally been names as lessor z in said lease and had executed, acknowledged and delivered the same; provided, however, that this instrument shall cover and bind all interest of the undersigned which may have been acquired ao, subsequent to the date of the aforesaid oil and gas lease and iso intended further to cover and bind any interest which the y1/4O undersigned may hereafter acquire by way of reversion or H o otherwise. z co It being provided further that rentals shall be paid to the r m persons designated to receive such rentals in accordance with the1-1 terms and provisions of said oil and gas lease and their heirs, legal representatives, successors or assigns. e. ” a We hereby agree and declare that the above described portion of the oil and gas lease in all of its terms and provisions is 0 binding on us and each of us and is, to the extent described, a valid and subsisting oil and gas lease and that this instrument z `" ;do shall be binding upon the respective heirs, executors, administrators, successors or assigns of the undersigned. o o � • 880893 Page 2 PARTIAL RATIFICATION OF LEASE EXECUTED this 7th day of September, 1988 . Weld County, Colorado Weld County Board of County Commissioners By: St's Gene R. Brant9aiut , Chairman ATTEST , 1l (][J i1el C�' y Perk and Recorder and Clerk to the Board ''n .4 l iii --- 4 h BST v'Th4 , ' .. �-r :%w. ` ountylClerk 4 STATE OF COLORADO ) hi ea ss ACKNOWLEDGEMENT FOR CORPORATION r., F COUNTY OF WELD ) la NJ 00 o CO Be it remembered that on the ,7 1 ) day of 4-41411../ , 1988 , before me, the undersigned, a Nota y Public, duly commissioned , in and for the County and State aforesaid, came k Gene R. Brantner, Chairman of the Board of County Commissioners, a o body corporate and politic, of the State of Colorado, personally z i- known to me to be such officer, and to be the same person who z a executed as such officer the foregoing instrument of writing in m N behalf of said corporation, and he duly acknowledged the execution q o, of the same for himself and for said corporation for the uses and m purposes therein set forth. r.n 0 H t•o IN WITNESS WHEREOF, I have hereunto set my hand and official z 0 CO seal on the day and year last above wri ten . 2 O ou ✓ w X LL-4-1 • r , N Notary Pu c 9/ ,r2e,c A tof - m a MIFGyei anion expires / / o y .. . o X ill Or c',' z o • tt o C C C') o N 880893 0 o ris WALSH PRODUCTION, INC. P O. BOX 30 I�.. PHONE 303-522-1839 AUG i O 19s; j STERLING, COLORADO 80751 •7 August 9, 1988 coLo Clerk of the County Board P. 0. Box 758 Greeley, Colorado 80632 RE: Gray Prospect S/2 Section 8-T8N-R59W Weld County, Colorado Dear Sir: On August 25, 1975, Weld County executed an Oil and Gas Lease covering reserved mineral interest under the captioned land along with other properties. The lease is currently held by production by gas production in Township 5 North, Range 61 West. Crystal Exploration and Production Company, formerly known as Charter Exploration and Production Company, Lessee of the referenced lease, has assigned the captioned land to Walsh Production, Inc. (Walsh) . Walsh, as Assignee and Operator, is planning on drilling a well on the captioned acreage during the term of its assignment. The surface of the captioned land is owned by the United States of America and administered by the Forest Service. In order to obtain a Forest Service permit to drill , we are required to show "Evidence of Authority of the Operator to Exercise the Reserved Rights" . A ratification of the referenced lease would be beneficial in our efforts to comply with this Forest Service requirement. The ratification will evidence Crystal Exploration and Production Company's right to operate on the captioned land under the terms of the referenced lease. Said rights, as to the captioned lands, were then assigned to Walsh. Enclosed for your review are two copies of our Ratification of Oil and Gas Lease. If the form meets with your approval , we request that you present it to the Board for their acceptance and execution. Once the ratification has been executed and notarized, return one fully executed copy to my attention at the above address. For your convenience and review, I have enclosed copies of the following documents: 1. Oil and Gas Lease dated August 25, 1975 between Weld County and Charter. Clerk of the County Board August 9, 1988 Page Two 2. Assignment dated August 2, 1988, between Crystal and Walsh. (The original is being recorded.) 3. Forest Service requirements, see Page 3. Please call me at the above number if you have any questions regarding the ratification or if I should be present at the Board Meeting. Thank you for your cooperation in this matter. Very truly yours, / /ten / / Jim McNay JM:jv Enclosures , SUBLEASE OF OIL, GAS & MINERAL LEASE WITH RESERVATION OF OVERRIDING ROYALTY INTEREST STATE OF COLORADO 4 COUNTY OF WELD i KNOW ALL MEN BY THESE PRESENTS THAT: CRYSTAL EXPLORATION AND PRODUCTION COMPANY, a Florida corporation, whose mailing address is P. 0. Box 21101 , Shreveport, Louisiana 71120, hereinafter referred to as "Assignor" , for and in consideration of the sum of Ten Dollars ($10.00) cash in hand and other good and valuable consideration paid by WALSH PRODUCTION, INC. , whose address is P. 0. Box 30, Sterling, Colorado 80751 , herein referred to as "Assignee" , the receipt and sufficiency of which are hereby acknowledged, does hereby assign, transfer and convey unto Assignee, subject to the reservations and conditions set forth below, all of Assignor' s interest in and to that certain Oil, Gas and Mineral Lease, dated August 25, 1975, from Weld County, Colorado, as lessor, in favor of Charter Exploration and Production Company, as lessee, recorded in Book 751 , Reception No. 1673042 of the County of Weld, Colorado Records, INSOFAR AND ONLY INSOFAR as said lease covers and affects the South One-Half (S/2) of Section 8, T8N-R59W. There is hereby reserved, in favor of Assignor, an overriding royalty interest of Three and One-Half percent of Eight-Eighths (3 1/2% of 8/8ths) of all oil, gas and minerals produced from the leasehold assigned, and/or lands pooled therewith, proportionately reduced. Said overriding royalty interest reserved herein shall be free and clear of all production, gathering, compression, dehydration, trucking, transportation, marketing and treating or other costs and taxes whatsoever, except production, severance and windfall profit taxes. Said overriding royalty shall attach to any renewal of said lease or any new lease covering such lands acquired by, or on behalf of, Assignee within one year from the termination of said lease, but only to the extent that such renewed or new lease covers the interest involved herein. This assignment is specifically made subject to the following: (A) the terms, covenants, conditions and provisions of the lease assigned; (B) that certain Letter Agreement dated August 1 , 1988, by and between Crystal Exploration and Production Company and Walsh Production, Inc. This assignment is made without any warranty whatsoever, express or implied, but with full subrogation to all rights of warranty to which Assignor may be entitled. -- r . The provisions contained herein shall be binding upon Assignor and Assignee, their respective heirs, successors, executors, personal representatives and assigns. IN WITNESS WHEREOF, this Assignment is executed on this the likday of Diu SAS , 1988. WITNESSES: ASSIGNOR: CRYSTAL ATION AN PRODU OMPANY l n . CLTN ON L.e.r� ,h✓ Vice—Presi ent ATTEST: \ l J BY' JOHN W. WALSH ssistant-Secretary ASSIGNEE: Int A(V4 (C, (A/14 ✓ 4 WALSH PF D IN B . STATE OF LOUISIANA X PARISH OF CADDO X BEFORE ME, the undersigned authority, a Notary Public in and for said Parish and State, on this day personally appeared SAM J. CLINTON, known to me to be the person whose name is subscribed to the foregoing instrument, as Vice President of CRYSTAL EXPLORATION AND PRODUCTION COMPANY, a corporation, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity stated, and as the free act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2'414( day of 1988. • No ary Public in and for Caddo Parish, Louisiana Lucille A. Robinson Notary Public Bossier Parish. LA Mr commission lo for Ws STATE OF COLORADO X COUNTY OF Logan X BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared Frank H. Walsh , known to me to be the person whose name is subscribed to the foregoing instrument, as President of WALSH PRODUCTION, INC. , and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity stated, and as the free act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 5th day of August . 7988. s . 01-10�I Notary Public MyOanmbslon EtpYes Oct.b. 1933 P1'WNEE NATIONAL GRASSLAND INFORMATION ON RESERVED AND OUTSTANDING MINERAL RIGHTS 1/88 On the Pawnee National Grasslands, mineral rights are generally totally or partially held by the Federal government and are administered by the Bureau of Land Management and Forest Service. However, when the rights beneath the Federal surface are held by private individuals, companies, or institutions, the procedure and processes are managed very differently by the Colorado Oil and Gas Conservation Commission (COGCC) and the Forest Service. The purpose of this discussion is to acquaint oil companies and other interested parties with the definitions and policies of this resource management. A better understanding should minimize delays and confusion. A. DEFINITIONS 1. RESERVED MINERAL RIGHTS - When the surface was acquired by the Federal government, the rights were reserved to the previous owner. Generally, the standard rights are specified by the Bankhead-Jones Farm Tenant Act of 1937, and development requires a Forest Service master special use permit, operating plan, bond, and may require a fee. 2. OUTSTANDING RIGHTS (also known as third party rights) - the previous owner of the surface and mineral rights deeded either all or part of the mineral rights to a third party before the surface was acquired by the Federal government. In this case, all parties must abide by the rights in the previous deeds. These rights are generally specified in the deed and may vary in each situation. Development requires a Forest Service special use permit, operating plan, and may require a bond, depending on wording in the deed. 3. SEVERED MINERALS - another name for reserved and outstanding rights. The mineral rights are "severed" from the surface. E. PROCEDURES AHD POLICIES As was stated above, the process for administering reserved and outstanding rights is different from that of Federal leasing. The Bureau of Land lianagement is not involved--downhole requirements are administered by the COGCC, and surface concerns are managed separately by the Pawnee National Grassland. The initial step is to determine the type of mineral rights present--check the deed(s) involved. These can be found in county records and/or Forest Service files. An initial discussion between the operator and the Forest Service is recommended as early as possible. Note that Forest Service direction requires that the Grassland respond to a complete application within 60 days. After an onsite i:iE;et L pet' eeni the operator, a Forest . .:rvice representative, and the dirt contractor, if i:mown, and receiving at least the approved APD, Permit Application, and evidence of authority to operate, the Grassland will review these documents to determine that surface impacts are ritigated to the etent possible. i:ote that the right to c::ercise the mineral rights Generally cannot be denied. When the above documents are satisfactory and the bond amount and fee have been posted, the Grassland will issue: a. A Special Use Permit authorizing the activity - This master permit will contain a standardized operating plan for the Grassland, with specific amendments as required. Additional well permits will be administered as amendments to the master permit. This will minimize delays in issuing the permit. This permit will also authorize pipelines, processing facilities and roads on the private lease--again to minimize delays. Note that activities off the private lease will require a standard Forest Service special use permit. b. A Bill for Collection for the fee, if any. The operator may commence operations when the special use permit has been signed by the operator's representative and the Forest Service. 2. Outstanding Rights As was stated above, deeds must be examined to determine the extent of the mineral rights. To initiate the process, the operator must provide: a. Application for Special Use Authorization, Form FS 2700-3 - As discussed under Reserved Rights. b. Approved APD - As discussed under Reserved Rights. c. Evidence of Authority of the Operator to Exercise the Rights - As discussed under Reserved Rights. d. Reclamation Pond - A bond may be required, depending on the deed wording and requirements. e. Cultural Resource Survey - As discussed under Reserved Rights. After the onsite and a satisfactory review of the above documents, the Grassland issues: a. A special use permit authorizing the activity, as discussed under Reserved Rights. The operator may commence operations when the permit has been signed by the operator's representative and the Forest Service. 1. RESERVED RIGHTS - The Bankhead-Jones Act describes the reserved mineral rights stipulations in the deeds and this process is more standardized than in outstanding rights. To initiate the process, the operator must provide: a. Application for Special Use Authorization, Form FS 2700-3. The additional attachments required are: 1. Survey plat 2. Well location and access route map (scale 1:24,000) 3. Pad layout J4 Cut/fill diagram 5. Production facility layout 6. Possible production facility, rlowline, pipeline and road location map (scale 1:24,000) Note that the six attachments above can be submitted after the onsite meeting. b. Reclamation Bond - The bond required by the COGCC covers plugging and abandonment and leveling of the wellsite. The amount of the bond required by the Forest Service will vary depending on the reclamation needs of each wellsite. Note that administration costs for the Forest Service are included in the bond in case the operator defaults. A Certificate of Deposit is recommended instead of cashier's checks or money orders. On producing wells, a production facility reclamation bond will be held for the life of the well. c. Approved Application for Permit to Drill from the COGCC. • d. Evidence of Authority of the Operator to Exercise the Reserved Rights - An abstract of the rights from the initial reservation through the current lease holder, and the agreement authorizing the operator to exercise the drilling rights arc sufficient. e. Fee - The regulation providing the authority for the reservation determines the fee requirements. Many of the reservations on the Grassland were authorized under the Bankhead-Jones Act of 1937, and no fee is required. However, the authority for each deed must be examined to determine the fee requirement. f. Cultural Resources Survey - A survey of the wellsite and access route by a professional archaeologist permitted by the Forest Service is required. A survey of the entire 40 acres is recommended to allow for moving the well location due to topography or cultural sites. Sites that are found should be staked if they interfere with the wellsite location or access route. A 100 foot buffer is needed between the cultural site and drilling activities. In winter, 'note that 70 clearance of snow is required for the survey. • 3. Combined Rece. ed/Outstanding Rights - in sor.ie ..ases, both types of rights may be present. Generally, the process least restrictive for the operator will be used by the Forest Service. 4. Post •Drilling Procedures - if the well is a dry hole, the :,;:llsite will be rehabilitated as discussed in the Operating Plan of the master permit, for both reserved and outstanding rights. If the well is a producer•, the location of production facilities and necessary fees will be in accordance with rights described in the reserved or outstanding rights deeds. The Forest Service may attempt to negotiate a location off the private lease to minimize surface Impacts. These locations may be advantageous to the operator. Although an additional special use permit may be needed for a different facility location, the decreased road construction and maintenance costs may outweigh the cost of the permit. The above discussions should provide a basic understanding of Forest Service procedures for reserved and outstanding mineral rights administration. If questions arise, do not hesitate to contact the Pawnee I;ational Grassland office at 303-353-5004. RATIFICATION OF OIL AND GAS LEASE i KNOW ALL MEN BY THESE PRESENTS: 25th August 19 75 ,a certain oil and gas THAT,WHEREAS,Heretofore under date of the —day of lease was made,executed,and delivered by Weld County, Colorado as Lessor—,to Charter Exploration and Production Company Colorado Weld County,State of to-wit: as Lessee,covering the following-described lands in Township 7 North, Range 61 West Township 8 North, Range 59 West Sec. 10: Sec. 4: Lot 4, SW/4NW/4 Sec. 10: N/2N24 Sec. 5: Lot 1, SE/4NE/4, S/2S/2NW/4 Sec. 20:ip9 North, Range 61 West Sec. 8: S/2 Sec. 6: Lot 7, E/2SW/4 Township 8 North, Range 60 West Township 8 North, Range 62 West Sec. 817:NE/4, E/2NW/4 Sec. 19: SE/4 To . 5 NE/4 Township 5 North, Range 62 West Tow. 5 North, Range 61 West Sec. 4: Lot 3, SE/4NW/4, E/2SW/4 Sec. 14: SW/4 Sec. 9: NW/4, Sec. 15: NW/4, SE/4 Township 11 North, Range 61 West Sec. 21: NE/4, Sec. 22: SE/4 Sec. 28: N/2SW/4, S/2NW/4, W/2NE/4, Sec. 28: E/2, Sec. 34: S/2 NE/4NW/4, NW/4SE/4 751 Rec. # 1673042 said lease being recorded in Book at Page of the records in the office of the Register of Deeds in and for said County,reference to said lease and to the record thereof being hereby made for all purposes. NOW,THEREFORE,In consideration of the sum of One Dollar ($1.00) and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,we, the undersigned,and each for himself and herself,as the case may be, do hereby ratify,adopt and confirm the hereinabove-described oil and gas lease in all of its terms and provisions and do hereby lease, demise and let said land and premises unto the said lessee hereinabove-named,his assigns and successors in interest,as fully and completely as if we had originally been named as lessor in said lease and had executed,acknowledged and delivered the same; provided,however, that this instrument shall cover and bind all interest of the undersigned which may have been acquired subsequent to the date of the aforesaid oil and gas lease and is intended further to cover and bind any interest which the undersigned may hereafter acquire by way of reversion or otherwise. It being provided further that the undersigned shall not be entitled to receive any portion of the rentals payable under said lease but such rentals shall be paid to the persons designated to receive such rentals in accordance with the terms and provisions of said oil and gas lease and their heirs,legal representatives,successors or assigns. We hereby agree and declare that said oil and gas lease in all of its terms and provisions is binding on us and each of us and is a valid and subsisting oil and gas lease and that this instrument shall be binding upon the respective heirs,executors,administrators, successors or assigns of the undersigned. EXECUTED This day of— ,19 88 Weld County, Colorado Weld County Board of County Commissioners by: STATE OF ss. ACKNOWLEDGMENT FOR INDIVIDUAL (Kans. Okla. and Colo.) COUNTY OF Before me, the undersigned, a Notary Public, within and for said County and State, on this day of , 19 , personally appeared and to me personally known to be the identical person—who executed the within and foregoing instrument and acknowledged to me that executed the same as free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year last above written. My commission expires Notary Public STATE OF Las, ACKNOWLEDGMENT FOR CORPORATION COUNTY OF J Be it remembered that on this day of , 19 , before me, the undersigned, a Notary Public, duly commissioned, in and for the county and state aforesaid, came , president of a corporation of the State of personally known to me to be such officer, and to be the same person who executed as such officer the foregoing instrument of writing in behalf of said corporation, and he duly ac- knowledged the execution of the same for himself and for said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal on the day and year last above written. My commission expires Notary Public • ' `11 4 ' • . . • R.araw et��'_-°.` o'abck _AL,. JAN ! 81981 - 925• Rau Na..18.46c,57 g 7 . - Sins of Calmedo, Weld Canty Recorder & Recod I AFFIDAVIT • , IOF LEASE E%TENSION OR PRODUCTION ' Cs WHEREAS, MGF OIL CORPORATION is the owner or operator of a o portion of the lands covered by the oil and gas lease described here- inafter; and e WHERFSS, the lease described herein is for a definite term as provided for therein and for as long thereafter as oil and gas or either of them is produced from said land; and s' e WHEREAS, a well, capable of producing oil and/or gas in ....-• commercial quantities has been dallied and compl ete'? on the lands as • --, covered in the below described oil and gas lease, to wit: O LESSOR: Weld County .-c LESSEE: Charter Exploration and Productio:. Company V' " `� August 25, 15 � DATED: 19 9 .0 ' '- Rec. No 1673042 i 1 RECOPDING: Book 751, 4• I. , LANDS COVERED: Per attached Exhibit "A" NOW, THEREFORE, the undersigned dces hereby give public notice :-.4,, . pursuant to Colorado Revised Statues 1973, Section 38-42-106 that the i above described lease is extended beyond the definite term by the production i.'. from one or more producing oil and/or gas wells. y'•; r .. IN WITNESS WHEREOF, this instrument is executed this 7-9 _ 19 .�d. i:- e day, of ➢< C . " MGF OIL CORPORATION • �:� tEst m ,� fir',0 . - e, cretary Sszai'e-61 .aebelnmD ) O,,,, 197 e,„L) ss. • coUNTY"at -0BMVFR ) ' (k, . , 19 90 before me, a notary On this _ i2__day of ,,_ Public in and for said County and ;state, personally appeared R. O. Major, 4I President, of NSF Oil Corporation, to me known to be the person who acknow- ledged the above instrument. '' WITNESS my hand and official seal the day and year above written. t r ' .lies Le@�rg IXpireso •,�•. < , ����� � , trw / Not ry Public - •1/4. .,, w .. U - X CINTIIIA EDGE Notary Public •�,., C -�'., '. b In and for Midland Count*,Texas p ')�.',z_ . .Ti- ' g , My Comm+ on Egiplree a-14-1a dL `,,. .. MIDI l''. ,i r l' _•. .x Boo( M'5 f ' 925 1846657 � y a'A ' r I � i EXHIBIT "A" IN , _ Township 8 North, Range 59 West, 6th P.M. Weld County, Colorado Section 4: Lot 4, SW/4 NW/4 • Section 5: Lot 1, SE/4 NE/4, S/2 S/2 NW/4 Section 8: S/2 % A' Township 8 North, Range 60 West, 6th P.M. Weld County, Colorado• • Section 8: NE/4, E/2 NW/4 Section 17: NE/4 `.. .r. Township 5 North, Range 61 West, 6th P.M. ` Weld County, Colorado • Section 4 : Lot 3, SE/4 NW/4, E/2 SW/4 .'.. s1 Section 9: NW/4 • , 1f Section 15: NW/4, $6/4 ' ,� ;SO Section 21: NE/4 + _ `i` Section 22: SE/4 . Section 28: E/2 Section 34: S/2 Township 7 North, Range 61 West, 6th P.M. '..!1'! • Weld County, Colorado : . f Section 10: N/2 `, Section 20: SW/4 • Township 9 North, Range 61 West, 6th P.M. Weld County, Colorado • Section 6: Lot 7, E/2 SW/4 AL Township B North, Range 62 W .st, 6th P.M. Weld County, Colorado Section 19: SE/4 1,'s '1 Township 5 North, Range 62 West, 6th P.M. held County, Colorado r: Section 14: SW/4 1`;x . Township 11 North, Range 61 hest, 6th P.M. , - Weld County, Colorado Section 28: N/2 SW/4, 5/2 NW/4, W/2 NE/4, NE/1 NW/4, NW/4 SE/4 ./ti, r 1 • �t (I) OFFICE OF COUNTY ATTORNEY PHONE(303)356-4000 EXT.4391 P.O. BOX 1948 ' GREELEY,COLORADO 80632 • COLORADO December 2 , 1987 Bob Yount, Jr. DiNardo & Markham Oil and Gas Properties P . O. Box 1018 Denver, CO 80201 RE: Oil and Gas Leases on Township 8 North, Range 59 West, Portions of Section 5 and Section 8 Dear Mr. Yount: This is in relation to your letter of November 16 , 1987 , regarding a request for information as to the availability for leasing of Sections 5 and 8 of Township 8 North, Range 59 West, in Weld County, Colorado . The Southeast Quarter of the Northeast Quarter and the South Half of the South Half of the Northwest Quarter of Section 5 , Township 8 North, Range 59 West, are shown in the Clerk to the Board' s records as having been leased to Charter Exploration, dated August 25 , 1975 , and recorded at No. 1673042 . This lease also included the South Half of Section 8 of the same Township and Range. Charter Exploration' s address was found at 1612 Court Place, Suite 350 , Denver, Colorado 80202 . In 1976 , the County was given notice that Crystal Oil Company had acquired Charter and at that time, Crystals ' address was P. O. Box 21101 , Shreveport, Louisiana 71120 . On January 23 , 1981 , at Reception No. 1846725 , an Affidavit of Production was recorded for the entire lease by an officer of MGF Oil Corporation. At the time , MGF was in the MetroBank Building in Denver. MGF apparently acquired an interest by virtue of a "farmin" agreement with Crystal which included portions of the original lease , but did not include the portion you are interested in. Proceeds have been received from the well in production on the lease, the last being received December 29 , 1986 , under a Division Order from Union Oil. In summary, it does appear that the property in T8N, R59W, Sections 5 and 8 , is currently held by production, but no royalties or shut in payments have been made for the year 1987 . That portion of the lease you are interested in appears still to be held by Crystal. The information I have gathered is simply from review of Clerk to the Board' s records which are public Bob Yount, Jr. Page 2 December 2 , 1987 record and are available for your own review. I have made no effort to review the records recorded in the Recording Office and information contained herein is in no way intended to constitute a title opinion or warranty of any particular interest held by Weld County. Thank you for your interest in Weld County oil and gas properties. You may wish to contact me or the Clerk to the Board after the first of the year to see that status of royalty or shut in payments or with any further information you may have regarding production on the subject lease. Yo truly, CiQ L4 ''`'� '' Le, D. M rrison ' Assistant County Attorney LDM: s xc : clerk to the Board Hello