HomeMy WebLinkAbout930609.tiff RESOLUTION
RE: APPROVE REQUEST OF CONTEX ENERGY 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, Contex Energy Company has requested that the bidding procedure be
waived concerning an Oil and Gas Lease on the following described mineral acres:
Part of the NW* of Section 6, Township 6 North, Range 65
West of the 6th P.M. , Weld County, Colorado
WHEREAS, after review, the Board found that did show good cause for waiving
the bidding procedure on said Oil and Gas Lease, and
WHEREAS, Contex Energy Company is offering to lease the above described
mineral acres, containing 1.86 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from Contex Energy 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 Contex Energy Company, 1645 Court Place,
Suite 212, Denver, Colorado 80202, to waive the bidding procedure on an Oil and
Gas Lease concerning the above described mineral acres, be, and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the offer of Contex Energy
Company, as hereinabove stated, be, and hereby is, accepted.
930609
/ Cr)/ 11 ecd cox
WAIVE BID PROCEDURE - CONTEX ENERGY COMPANY
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 14th day of July, A.D. , 1993.
•
/ ' BOARD OF COUNTY COMMISSIONERS
ATTEST: // At WELD COUNTY, COLORADO
lJl7A �
Weld County Clerk to the Board EXCUSED DATE OF SIGNING (AYE)
Y \y_� Constance ta L. H rbert,r/ Chairman
o
BY: %II t` / I VVC r (.L ,GI A iU 1 i WDeputy rk to the Board W. k W bster, P7em �VJ
APPROVED AS TO FORM: W.
eorge . Baxter
t --)�%�Z
Co my Attorney - Dale K. Hall
arbara J. Kirkmeyer
930609
•
AR23439].7
_._ WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this j1•-aay of July , 19 93, by and between WELD COUNTY,
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:
Contex Energy Company
1645 Court Place, Suite 212
Denver, Colorado 80202
hereinafter called Lessee.
WITNESSE E, that Lessor, for and in consideration of the sum of Two Hundred and No/100
Dollars ($200.00) , 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 Lessee, the land hereinafter described, with the exclusive
right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing
therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines,
and erection of structures thereon to produce, save and take care of said products, all that certain tract of land
situated in the County of Weld, State of Colorado, described as follows, to wit:
Township 6 North, Range 65 West, 6th P.M.
Section 6
SEE EXHIBIT "A" CONTAINING DESCRIPTION ATTACHED HERETO
AND MADE A PART HEREOF FOR ALL PURPOSES.
and containing 1.86 acres, more or less.
V' O
GV 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on
'"I O acreage pooled therewith, or drilling operations are continued as hereinafterprovided. If, at the expiration U of
the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled
O WC] 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
O $ therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall
0 C4 elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a
y. [s1 subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production
Dp4 thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences
0 additional drilling or re-working operations within ninety (90) days from date of cessation of production or from
Wdate of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations;
01 PC at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil
:!1 or gas is produced from the leased premises or on acreage pooled therewith.
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2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee
m ,4 shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the
cm U primary term. Lessee may at any time or times during or after the primary tea surrender this lease as to all or
O z any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release
M H or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered.
EA
N E
O PG 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor one-eighth
(1/8) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and
r •�- saved from the leased premises.
ri
01 ELI
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as
g royalty to Lessor One Dollar par year per net mineral acre owned by Lessor and covered by this lease, such payment
Nor tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days
O from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period
U O4 such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within
W Q! the meaning of this lease.
N 5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described
01 O lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the said Lessor
en rA only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate.
Dq a. a ;i
1 K:\ctb\oilgas
330609
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 walla of Lessor.
7. When requested by Lessor, Lessee shall bury L '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
O ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been
at) furnished with notice, consisting of certified copies of all recorded instruments or documents and other
O information necessary to establish a complete chain of record title from Lessor, and then only with respect to
NO
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 L 'a operations may be conducted without
Fa regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for
O W any act or omission of any other leasehold owner.
O
O c4 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as
49- fa a recurring right, either before or after production, as to all or any part of the land described herein and as
2 to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
Ucovered by this lease with other land, lease or leases in the immediate vicinity for the production or oil and gas,
W or separately for the production or either, when in Lessee's judgment it is necessary or advisable to do so, and
Cat p4 irrespective of whether authority similar to this exists with respect to such other land, lease or leases.
Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such
N non-producing formations. The forming cr reforming of any unit shell be accomplished by Lessee executing and
IN4 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
en U theretofore been commenced. Production, drilling or reworking operations or a well shut in for want of a market
GN
anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling
O Z or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere
NF-I herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
E royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion
O a 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
N unitize, pool or combine all or any part of the above described lands as to one or more of the formations
W thereunder with other lands in the same general area by entering into a cooperative or unit plan of development
M 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
N a' shall be deemed modified to conform to the terms, conditions and provisions of such approved cooperative or unit
c plan of development or operation and, particularly, all drilling and development
U L4 express or impled, shall be satisfied by compliance requirementsrequirements
of this lease,
with the drilling and development of such plan
N g 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
t0 plan of development or operation whereby the production therefrom is allocated to different portions of the land
M0 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
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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 lases' and approved by any
governmental agency by executing the same upon request of L .
12. All express or implied covenants of this lease shell be subject to all Federal and State laws,
executive orders, rules or regulations, and this lease shell not be terminated, in whole or in part, nor L
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.
a ti'
2 &tictb\oilgaa
9306,09
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 po d by Lessee hereunder. In the event of any such default or failure, Lessor
o00 shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said
C lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying
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the same, stating that if within thirty (30) days from the date of mailing said notice, Lessee shall correct such
U failure or default, no cancellation will be made. If such failure or default is not corrected with thirty (30)
o days after the mailing of such notice, and if Lessee does not request a hearing on such notice within thirty (30)
a days, this lease will terminate and be cancelled by operation of the paragraph without further action by Lessor,
0 W or further notice to Lessee.
03
0 P4 16. All of the provisions of this lease shall be binding upon the heirs, personal representatives,
fa G successors and assigns of Lessor and Lessee.
a
U17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described
W without the express written consent of Lessor.
o+ a
in IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
m7i
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HI bq BOARD OF COUNTY CCMMISSIONERS
WWELD UNTY, COLORADO
el la
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Weld Let] tCounty Cls1*to the Board
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0 n LESSEE: fsotergy Company
W >4 /l("3dneSSIC
g ;,K B. It/ By:
a ", Gary Butler, President
, /
mr P MIE OE COLORADO )
Os 0 ) is.
fh re
re re COUNTY OF WELD Cd i )
D ; I Q
CC1 W Tha foragoinR�,$'atrumaat was acknowledged before me this /,J ' day of CIO + 1993, by
(&Lr,j �i C a .
Witness my band and official seal.
•
My commission expires:
Notary Public
HY COMMISSION EXPIRES JAN. le 1996
3 R:\ctb\oilgas
930609
EXHIBIT "A"
Attached to and made a part of that certain Oil And Gas Lease
dated the /T tt— day of July, 1993, by and between Weld County,
Colorado, a political subdivision of the State of Colorado, as
Lessor, and Contex Energy Company, as Lessee.
le O Township 6 North, Range 65 West, 6th P.M.
c' o Section 6: A tract of land Sixty (60) feet wide, the center line
of which is described as follows: Beginning at a point
O on the West line of the right of way of the Union Pacific
o Railroad Company, whence the intersection of the West
line of said right of way and the North line of said
Section 6, bears North 16°09 ' West, 648.2 feet; thence
North 50°39 ' West 656.7 feet to a point of curve; thence
o• w on a 23° curve to the right, 213. 6 feet to a point on the
@ South line of the present County road which is 1328 . 3
u feet West and 30 feet South of the North one quarter
corner of said Section
ON a and containing 1.23 acres, more or less
.. o
� Dt Section 6: A strip or parcel of ground within the boundaries of the
NW4, more particularly described as follows: Beginning
a at a point on the Union Pacific Westerly line, said point
being South 16°09 ' East 702 . 5 feet, from the North
M H boundary of said Section 6; thence bearing North 49°39 '
West 720 feet; thence on a 20°30' curve right 239. 6 feet,
oci� more or less; thence South 57°11' East 164.4 feet, more or
less; thence on a 5°11' curve right 369. 6 feet, more or
less; to a point on the Union Pacific Railroad Westerly
ka R.O.W. line; thence North 16°09 ' West along U.P.R.R.
Westerly R.O.W. line 122 .4 feet, more or less to point of
"� beginning, containing 1. 18 acres, more or less.
um SAVE AND EXCEPT that certain 0.39 acre tract as described in Book 933,
mg Page 459 and that certain 0. 16 acre tract as described in Book 985,
Page 249, Weld County, Colorado, records, both tracts conveyed to
V' CO
o Potato Growers Co-op.
M
.—I N
C1 rra
SIGNED FOR IDENTIFICATION:
Weld County
( �/,.ialr:��clPi BY: - Lfi'�•t/E
• 930699
CONTEX ENERGY COMPANY n „
1645 COURT PLACE
SUITE 212
DENVER, COLORADO 80202
26
(303)623-3444 r
Facsimile(303)6231523 �'��" �
1:
June 23 , 1993
Board of County Commissioners
Weld County
P.O. Box 758
Greeley, CO 80632
RE: Offer to lease for oil and gas exploration
Township 6 North, Range 65 West, 6th P.M.
Section 6: Two tracts of land located in the
NW;, totaling 1.86 acres, more or
less
Weld County, Colorado
To the Board of Commissioners:
This letter represents Contex Energy Company' s offer to
lease the above referenced land for oil and gas exploration.
The complete description is attached to the lease form as
EXHIBIT "A" .
Contex respectfully requests the Board to waive its bid
requirement as per county policy for parcels under 5 acres.
Enclosed please find duplicate Weld County Oil And Gas Lease
(small tract) forms covering the above referenced tract and a
Convex Energy Company check in the amount of $200. 00 for the
minimum royalty bonus.
If you have any questions regarding this offer or Contex
Energy please call me at the above number.
Thank you for your consideration of Contex Energy' s offer.
Very truly yours,
Gary Butler
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