HomeMy WebLinkAbout940651.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE
AND ACCEPT OFFER TO LEASE MINERAL ACRES - S15, T4N, R68W
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, Snyder Oil Corporation, 820 8th Street, Greeley, Colorado 80631,
has requested that the bidding procedure be waived according to the policy as set
forth in the Weld County Administrative Manual for parcels less than five acres,
on the following described mineral acres:
Section 15, Township 4 North, Range 68 West
of the 6th P.M. , Weld County, Colorado, as
described on Exhibit "A" attached hereto.
WHEREAS, Snyder Oil Corporation is offering to lease the above described
mineral acres, containing 1.205 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Snyder Oil Corporation
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 Snyder Oil Corporation, to waive the
bidding procedure on an Oil and Gas Lease concerning the above described mineral
acres, be, and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of Snyder Oil
Corporation to lease mineral acres, as hereinabove stated, be, and hereby is,
accepted.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 11th day of July, A.D. , 1994.
BOARD OF COUNTY COMMISSIONERS
ATTEST: �� WELD COUNTY, COLORADO
Weld County Clerk to the Board /iU'/( / JPtta24
W. H. Webs er, Ci irm
BY:
Deputy Cler to theBoar . Hall, [rp T m
APPROVED AS TO FORM: C .
Georg E. Baxter
•
County Att rney Constance L. Harbert
44AL,_ i vf.�xfyljc
Barbara J. Kirkme r OO
940651
/ r) 1 47,3-
Age"161125 5 WELD COUNTY OIL AND GAS LEASE
(Small Tract)
his lllthda of , 19 94, by and between WELD COUNTY,
THIS AGREEMENT, made and entered into t y July
COLORADO, a political subdivision of the Sate 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:
Snyder Oil Corporation
R70 Rrh Stroat
Greeley. CO 80631
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of Two Hundred Dollars
and no/100 Dollars , cash in hand paid, the receipt of which is hereby acknowledged, and the
covenants and agreements hereinafter described, has granted, demised, leased and let, and by these presents does
grant, demise, lease and let exclusively unto the said L , the land hereinafter and operibed, with the erating for and producing
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right for the purpose of mining, exploring by geophysical and other methods, perib g
therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement layingfor
ai tract e of land
and erection of structures thereon to produce, save and take care of said products, all
thOU situated in the County of Weld, State of Colorado, described as follows, to wit:
O
Township 4 North, Range 68 West, 6th P.M.
`i section j : As described on Exhibit "A", attached hereto and
incorporated herein by reference.
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o CG and containing 1.205 acres, more or less.
41,
1. It is agreed that the lease shell remain in force for a term of three (3) years from this date
U▪ and as long 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
ul OG the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled
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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
r-1 `.e. 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
ep o-7 subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production
• c) thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences
CO Z 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;
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(ti at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil
CD VI or gas is produced from the leased premises or on acreage pooled therewith.
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Cu DO2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that
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00 shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the
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" primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or
(\7 ,Q any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release
O or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered.
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Drl 3. In consideration of the premises the said Leesae covenants and agree to pay Lessor one-eighth
aa-a g t
a" (1/8) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and
' 00 saved from the leased premises.
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r-j O 4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as
03 w royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment
or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days
from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period
such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within
the meaning of this lease.
5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described
lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said Lessor
only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate.
1 K:\ctb\oilgas
940651
Revised 3/93
Small Tract Oil and Gas Lease
Page 2
6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on said
land for Lessee's operations thereon, except water from the wells of Lessor.
7. When requested by Lessor, L hall bury Lessee's pipe lines below plow depth.
8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without
the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures 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
payment 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 difference portions or parcels of said land shall operate
to enlarge the obligations or diminish the rights of L , 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 of 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 part of the land described herein and as
to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
covered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas,
or separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and
irrespective of whether authority similar to this exists with respect to such other land, lease or 1 .
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 of any unit shall be accomplished by Lessee executing and
filing 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 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 operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere
herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion
of the unit production that the total number of surface acres covered by this lease and included in the unit bear
to the total number 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 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 impled, 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 or 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 allocated 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.
12. All express or implied covenants of this lease shall be subject to all Federal and State laws,
executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee
held liable in 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.
B 1451 REC 02398125 07/18/94 15 : 45 $0 . 00 2/004
F 0849 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
2 Ks\ctb\oilgas
940651
Revised 3/93
Small Tract Oil and Gas Lease
Page 3
13. Lessor does not warrant title to the leased 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. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions,
including the defense of such claims or actions, based upon or arising out of damage or injury, including death,
to persons or property caused by or sustained in connection with operations on this leased land or by conditions
created thereby, or based upon any violation of any statute, ordinance or regulation.
15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof including
but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and gas operations,
Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease as to all of
the leased land so claimed or possessed by Lessee hereunder. In the event of any such default or failure, Lessor
shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said
lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying
the same, stating that if within thirty (10) days from the date of mailing said notice, Lessee shall correct such
failure or default, no cancellation will be made. If such failure or default is not corrected with thirty (30)
days after the mailing of such notice, and if Lessee does not request a hearing on such notice within thirty.(30)
days, this lease will terminate and be cancelled by operation of the paragraph without further action by Lessor,
or further notice to Lessee.
16. All of the provisions of this lease shall be binding upon the heirs, personal representatives,
successors and assigns of Lessor and Lessee.
17. L hall not conduct operations of any kind upon the surface of the lands herein described
without the express written consent of Lessor.
IN WITNESS WHEREOF,this instrument is executed as of the date first above written.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY COLORADO - i�.^Y�^/'Ij
ATTEST: aft'v/ M��
Weld Co y Clerk//to the Board ..,,
if
LESSEE:. Y t•
4h
By: `/
STATE OF COLORADO )
as.
COUNTY OF' SUl DCMUER—)
/7 ____-
The foregoing instrument was acknowledged before me this f day of —it)CE , 1994 by
i Alei< J. egoutey , A-rroRnrg/-iN-rAc7-
Witness my hand and official seal. /1 /1 � � p,,
My compi�iop expipass / / ' W(i4Nota Public
1. ;pis / Notary Public
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B 1451 REC 02398125 07/18/94 15 : 45 $0 . 00 3/004 940651
P 0A S0 MARY ANN FRl)RRSTF. IN CLRRK & RRCORnRR WRi.n Cn . rn
"EXHIBIT A"
THIS "EXHIBIT A" IS PART OF THAT CERTAIN OIL AND GAS LEASE
DATED MAY 26 , 1994 , BY AND BETWEEN WELD COUNTY BOARD OF
COUNTY COMMISSIONERS, AS LESSOR AND SOCO WATTENBERG
CORPORATION, AS LESSEE . THE FOLLOWING LANDS ARE LOCATED IN
WELD COUNTY, COLORADO :
Township 4North, Range_68_West, 6th P . M.
Section 15 : A piece or parcel or land twenty feet (20 ' ) wide
and two thousand six hundred twenty five and seven-tenths
feet (2 , 625 . 7' ) long, lying within the boundaries of the
Northeast Quarter of Section fifteen (15) , Township 4 North,
Range 68 West, of the 6th P . M. and eastern boundary line of
which lies parallel to and fifty feet (50 ' ) distant Westerly
from survey centerline for P.W.A. Project 352-F . Said center
line being more particularly described as follows :
Beginning at a point which is the East Quarter (E/4) corner
of Section Fifteen (15) , Township Four (4) North, of Range
Sixty Eight (68) West of the Sixth (6th) Principal Meridian,
and which is survey center line Station 1905-70 . 0 ; thence
North No degrees One Minute and Thirty Seconds West along
East line of said Section for a distance of Two Thousand Six
Hundred Twenty Five and Seven-tenths feet (2 , 625 . 7' ) to a
point which is survey center line Station 1931-95 . 7 .
Weld County, Colorado.
Containing 1 . 205 acres , more or less
B 1451 REC 02398125 07/18/94 15: 45 $0 .00 4/004
F 0851 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
940651
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