HomeMy WebLinkAbout911057.tiff ARtill9792 -RESOLUTION
RE: APPROVE -RELEASE OF COMPLIANCE SECURITY AND AUTHORIZE CHAIRMAN TO SIGN -
-TOWER ENERGY CORPORATION
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s � WHEREAS, the Board of County Commissioners of Weld County, Colorado,
U pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
q with the authority of administering the affairs of Weld County, Colorado, and
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0 3 WHEREAS, Development Standard fill of Amended Use by Special Review
o a 717:85:64 for Sunshine Valley Petroleum Corporation, approved by Resolution dated
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March 4, 1987, on property described as NE'„, E''-zNWI, W?SE; of Section 33, Township
a 6 North, Range 65 West and NINW,' Section 4, Township 5 North, Range 65 West of
OV the 6th P.M. , Weld County, Colorado, provides that security in the amount of
a $5,000 per well is to be retained until each well is capable of production, after
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An which a single $5,000 bond or security shall be held on the entire area, and
c WHEREAS, said wells have been sold and now are under the control of Basin
a Exploration, and
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• U WHEREAS, said security is held by Union Colony Bank (Account #30-25780) in
o H the name of Mazuma Turnkey Contractors, Inc. , now known as Tower Energy
E.W., Corporation, and
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W WHEREAS, current State law may preempt the County from holding post-
CA m completion security in connection with oil and gas operations, and
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o z WHEREAS, the County Attorney staff has recommended that the Board release
,nom 4 $6,794.29 now being held for compliance security, and
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U a WHEREAS, after review, the Board deems it appropriate to release said
W security.
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in n NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
4 Ga County, Colorado, that $6, 794.29 being held for compliance security on the
aforementioned Amended Use by Special Review be, and hereby is, released.
BE IT FURTHER RESOLVED by the Board that the Chairman is authorized to sign
the Request to Close Account for Account #30-25780 at Union Colony Bank with any
funds in said account being paid to Tower Energy Corporation.
911057
APe ; ;CfF, CaE; CAL 1/4'.; &Witt'
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-RE: RELEASE COMPLIANCE SECURITY - TOWER ENERGY CORPORATION
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o U -The above and foregoing Resolution was, nn motion duly made and seconded,
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adopted by the following vote on the 9th day of September, A.D. , 1991.
ND
o W ATTEST: �U BOARD OF COUNTY COMMISSIONERS
o
-WELD COU T OLORADO
9 a Weld County Clerkfo the Board
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D By: _
o a {Deputy` ,lerk(tog ham$ and
rf Sit
\ G o e Ken edy, Pro-Tem
o x APPROVED,ASy}TOt FORM:
a4 � � Constance L. Harber
W ,-- ,- /-y/J y
lttr) 2 /Oar County Attorney E. W. Kiiztfby
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REQUEST-TO CLOSE ACCOUNT
August 8, 1991
TO: Union Colony Bank
1701 23nd Avenue
Greeley,CO 80631
RE: Account 30-25780
Gentlemen:
mo 0 This instrument, when signed-by the parties named thelow, constitutes a written request that-Union
o Colony Bank pay all funBs on deposit, including accrued interest, in account 30-25780, to Tower
S Energy Corporation (formerly Mazuma Turnkey Contractors, Inc.), 1050 17th Street, Suite 1550,
U Denver, CO 80265, and that the account then be closed.
A
o 3 By this letter, Weld County releases any interest it may claim to the funds on deposit in said account.
51), w Very truly yours,
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to BOARD OF COUNTY COMMISSIONERS TOWER ENERGY CORPORATION,
" WELT)COUNTY, COLORADO
o x FORMERLYMAZUMA I URNICY
w CONTRACT:( RS,,INC.
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0-H Gordon a r William G. Crews Attorney-in-Fact
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CREWS & ZEREN
'^+: 72i / r. )"I( PETROLEUM LAND CONSULTANTS
'i 1223 28TH AVENUE,SUITE 2
C( F- GREELEV.COLORADO 80831
TO (_ ' (303)361-0733 GREELEV
,"- r _ (303)668-7710 DENVER
(303)361-0887 FAX
September 20, 1991
Bob Solomon
Tower Energy Corporation
1050 17th Street, Ste. 1550
Denver, CO 80265
Dear Bob:
Enclosed please find:
1. Union Colony Bank Cashier's Check No. I-8655 in the amount of 6,838.46,payable
to Tower.
2. Copy of Request to Close Account.
3. Copy of Resolution Board of Weld County Commissioners.
4. Copy of bank printout at day of closing the account (today).
I believe it's easier to get a serial killer out on bail than to get money back from a governmental
body. At any rate, we can now close the file on this one.
Regards
/9
i
William G. Crews, CPL
enclosures
WGC/mm
,,i,1_0
-T 30-as28p
717ez Ana 72,6,2 i-4,Zez k 2404.0
AUTHORITY OF CORPORATION TO MAINTAIN DEPOT ACCOUNT ofer
To: Union Colony Bank Northglenn
Greeley, Colorado 80631 RURial Colo. , -February 26 ,19 SA
We, B. G. Solomon , President and Thomas M. Reed _, Secretary of
XXt Mazuma Turnk v Cont r r ^arior StI3a4 {X
do hereby certify that, at a sp_ecial meeting of the Board of Directors of said Company
regularly and properly called and held in Northglenn
, Colorado
on the 26th day of February , 1988 , at which meeting a majority of the Directors
were present, a resolution was unanimously adopted by the Board of Directors of said
Company, of which the following is a true and correct extract, to-wit:
"RESOLVE°,
That %MA Union Colony Bank (hereinafter referred to as the Bank) be and it hereby
is designated as a depository of this corporation, and that the Bank be and it hereby is
authorized to accept for credit to this corporation and/or for collection, any and all
checks, drafts, notes and other negotiable instruments payable to this corporation or in
which it may have an interest, when endorsed in the name of this corporation, in writing,
by rubber stamp, or otherwise, with or without a designation of the party making such
endorsement.
"RESOLVED,
That the account shall be designated as follows:
Ma>nma Tnrnkay rnnrrarrnr S Tnr /Weld County (Am2IIded U.S.R.-717:85:64)
"RESOLVED,
That any and all funds standing to the credit of this corporation with the Bank in said
account may be withdrawn upon checks, drafts and orders or other undertakings for the payment
of money, when signed in the name of the corporation by:
William G. Crews as Attorney-in-Fact , or Cynthia A. E. Zeren as Attorney-in-Fact
or as
or as
and countersigned by: Chairman of the Board of Weld County Commissioners
as , or
as
or as
� or as
"RESOLVED,
That the above authorized officers and employees are empowered in accordance with the
provisions of the next preceding resolution also to collect, discount, negotiate, endorse,
and _assign, in the name of the corporation, all checks, drafts, notes and all other paper,
which are payable to the corporation or in which the corporation has an interest."
"RESOLVED,
That the signatures of the above persons shall be duly certified to the Bank and shall
be submitted on the Bank's own form of signature card and that the Bank is hereby authorized
to honor and pay any and all checks, drafts and orders so signed, without inquiry as to the
circumstances of issue or the disposition of the proceeds thereof, whether drawn for the
individual obligations or for deposit to the individual accounts of the persons above named
or other officers or employees of this corporation, for cash or otherwise. "
The aforesaid resolutions and each of them are in full force and effect and shall so
remain until revoked by similar resolutions properly executed in writing and delivered to
the Union Colony Bank; and, in witness whereof, we have hereunto set our hand and have caused
the seal of the corporation to be affixed this 26th day of February 19 88 .
President
SEAL olomon
Secretary
Thomas M. Reed
Tax ID Number
9/195,
illimiallinisesarweirsiwinurelarossala--
September 3, 1991 CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE, SUITE 2
Lee Morrison, Esq. GREELEY,COLORADO 80631
Assistant County Attorney 303)36,-0 33 cREELEv
303
Weld County O3)35,-0067 FAX
915 10th Street
Greeley, CO 80631
Re: Request for Release of Security - Tower Energy Corporation
USR 717:85:64
Dear_Lee:
Further to my letter of August 8, and at your request, I enclose copies of the following:
1. -Nominee Agreement dated-December 10,1-986, between Sunshine Valley Petroleum,
Sunshine Valley Petroleum Corporation, and Mazuma Turnkey Contractors, Inc. This sets forth that
Sunshine was at all times acting as a nominee of Mazuma in connection with their lease acquisition and
drillingprogram.
2. Authority of Corporation to Maintain Deposit Account (Union Colony Bank) whereby
evidencing that the involved account...30-25780...was opened by, and in the name of, Mazuma Turnkey
Contractors, Inc.
As background, all drilling was done in-the name of Sunshine Valley Petroleum Corporation, but
personnel of Mazuma were actually in charge of all operations. After completion of each well, Sunshine
Valley made all necessary assignments to the working interest owners and Mazuma took over as operator
of record with the Colorado Oil and Gas Conservation Commission and had full responsibility for all
aspects of operating, including the collection of well costs owed by working interest owners, filing of
reports, posting of bonds, maintenance of insurance, arranging oil sales, etc. Mazuma Turnkey
Contractors, Inc. officially changed their name to Tower Energy Corporation (which is evidenced in the
Weld CountyRecords by a recorded Certificate of Name Change from the Colorado Secretary of State),
and it is therefore Tower Energy Corporation that should be the payee of the funds now in the USR
account at Union ColonyBank.
The-relationship is indeed a bit confusing, and I hope this is sufficient to explain how the account ended
up in the name of Tower. 1f you need any further clarification or information, please let me know.
Thanks and regards,
William G. Crews, CPL
Attorney-in-Fact for
Tower Energy Corporation, formerly
Mazuma Turnkey Contractors,_Inc.
enclosures
WGC/mm
cc: Ed Arco - Tower Energy Corporation - Denver
J. Michael Morgan, Esq. -1_ohf,Shaiman & Ross, P.U. - Denver
ni 1-0
•
NOMINEE AGREEMENT
THIS NOMINEE AGREEMENT is made December 10 , 1986 (to be
effective for all purposes on January 22 , 198S) , by, between and
among SUNSHINE VALLEY PETROLEUM, a sole proprietorship whose
address is 950 Stafford , Casper , Wyoming 8260$ ( "Sunshime -Sole
Proprietorship") , SUNSHINE VALLEY PETROLEUM CORPORATION, a
Wyoming corporation whose address is 950 Stafford , Casper ,
Wyoming $2609 ("Sunshine Corporation") , and MAZUMA TURNKEY
CONTRACTORS, INC. , a Colorado corporation whose address is 11990
Grant Street, Suite 218 , Northglenn , Colorado 80233
( "Mazuma") . Sunshine Sole Proprietorship and Sunshine
Corporation are collectively referred to herein as "Sunshine" .
1 . Background . On January 22 , 1985 , Sunshine Sole
Proprietorship and Mazuma agreed that Sunshine Sole
Proprietorship (and a corporation then proposed to be formed ,
now Sunshine Corporation) would acquire, as Mazuma' s nominee,
oil and gas leases and farmout agreements in Townships 3 through
6 North , Ranges 63 through 67 West , Weld County, Colorado (the
"Area of Mutual Interest") . This agreement is intended to
confirm and ratify the nominee relationship which the parties
have been using since January 22 , 1985, and to extend such
relationship into the future .
2 . Agreement . Sunshine and Mazuma hereby agree that
the leases and farmout agreements which have been obtained since
January 22 , 1985 , and which are now being obtained , by Sunshine
(whether Sunshine Sole Proprietorship or Sunshine Corporation)
within the Area of Mutual Interest are -beneficially owned solely
by Mazuma.
Promptly following a regoest by Mazuma , Sunshine shall
assign to Mazuma or the parties designated by Mazuma all or any
part of the leases or farmout agreements acquired by Sunshine in
the Area of Mutual Interest . While nothing contained herein
shall require that any such request be in writing , if Sunshine
ever fails to make a requested assignment within 7 days after
written notice by Mazuma , this agreement may be recorded in the
real property records of Weld County, Colorado, where it shall
be deemed a conclusive assignment by Sunshine to Mazuma of
Sunshine' s entire interest in the leases , farmout agreements and
all equipment and other material within the Area of Mutual
Interest .
Sunshine shall not Pledge, mortgage, assign , convey or
otherwise transfer any interest beneficially owned by Mazuma
within the Area of Mutual Interest unless Mazuma has first given
its explicit consent to such transfer .
STATE OF w..lr„„, )
) ss .
COUNTY OF Nqwraas )
The foregoing instrument was acknowledged before -me
this )(�Ciday of December , 1986 , by Joan R. Neumiller d/b/a
Sunshi e Valley Petroleum, a sole proprietorship, and by Wayne
P. Neumiller as President of Sunshine Vall �,;2,14 ocx00c><�
Corporation, a Wyoming corporation, on be a ifioarJ.Wel�d' NoraryPubuc
corporation.
County of '� Stare of
Natrona r Wyoming
Witness my hand and official sea th
.My Commission Expires Apr.4, 1989
My commission expires :
��1�—\ �
.q-e.:3�
Notary PuMOA
STATE OF )
) ss .
COUNTY OF )
The foregoing instrument was acknowledged before me
this ajN- day of December , 198_6 , by B.G. Solomon as President
of Mazuma Turnkey Contractors , Inc . , a Colorado corporation, on
behalf of said corporation .
Witness my hand and official seal .
My commission expires :
GHy Ccr^miwrCH frai:rs ias 6, 196_6
N tary Pu lic
Sunshine has participated and will continue to
participate as a working interest owner in certain wells drilled
by Mazuma within the Area of Mutual Interest . When any
requested assignment is made by Sunshine in strict accordance
with Mazuma ' s request , Sunshine may reserve a leasehold interest
equal to that permitted by Mazuma, which reserved interest shall
be the sole property of Sunshine, not subject in any way to this
Agreement. Any interest reserved by Sunshine shall conclusively
be deemed owned by Sunshine if the concerned assignment has been
recorded in the real property records of Weld County for at
least 180 days; prior to that time, however , Mazuma may
challenge such assignment on the grounds that it reserves a
larger interest to Sunshine than that permitted by Mazuma or
otherwise fails to conform to Mazuma ' s instructions .
Prior to such assignment, all leases , farmout
agreements and equipment shall be the sole property of Mazuma,
and Mazuma shall be solely responsible for the payment of all
bonuses , rentals , surface damage allowances , and other amounts
that may arise in connection therewith . Mazuma hereby agrees to
indemnify and hold Sunshine harmless from any such payment
obligations arising prior to Sunshine ' s assignment in accordance
with Mazuma' s request.
3 . Term. This Nominee Agreement shall be deemed
effective January 22 , 1985, and shall remain in effect until
January 22, 2005 , unless sooner terminated by mutual agreement
of the parties set forth in writing .
4. Binding Effect . This Nominee Agreement shall be
binding upon and inure to the benefit of the parties hereto ,
their heirs , successors and assigns ; provided , however , that
this agreement may not be assigned without the express written
consent of the other party and no assignment shall relieve the
assigning party of debts and liabilities incurred prior to the
effective date of assignment .
SUNSHINE VALLEY PETROLEUM MAZUMA TURNKEY CONTRACTORS , INC .
CORPORATION \
BY:1). L!1-1. ,1.t D Y n 1 v.ec Dui FILL( BY '
Wayne P. Neumiller , President B. , olo , President
Joan R. Neumiller d/b/a
SUNSHINE VALLEY PETROLEUM
Jdan R. Neumil er ^
/'
24.1
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NOTICE: SEE 1
REVERSE SIDE w FOR IMPORTANT INFORMATIAN A ,jam
21.1
BOARD OF COUNTY COMMISSIONERS
REVIEW/WORK SESSION REQUEST
DEPARTMENT: COUNTY ATTORNEY DATE: August 30, 1991
PERSON REQUESTING: Lee D. Morrison 0(1O13A-
Brief description of the problem/issue: Should the Board release
the USR required collateral in the form of an account with Union
Colony Bank for Mazuma Turnkey a/k/a Tower Energy Corporation. The
well has since been sold to Basin Exploration but no accounting was
made for the collateral when Basin bought out a large number of
wells . Currently, state law precludes local regulation of oil and
gas . (See attached letter. )
What options exist for the Board?
Board could release collateral or refuse to do so until Basin posts
collateral .
Recommendation to the Board:
The current law probably precludes the county holding the
collateral and it should be released. If state law changes, we
would have to pursue Basin.
Initial :
Approve Schedule
Recommendation Work Session Other
Lacy
Kennedy
Kirby
Harbert
Webster !�
LDM:bp
attachments
wsrmazum.rmm
911097
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
p /� 1223 28TH AVENUE,SUITE 2
August 8, 1971 GREELEY. COLORADO 80631
(303)351-0]33 GREELEY
(303)659-]]10 DENVER
Lee Morrison, Esq. 303)351 0867FAX
Assistant County Attorney
Weld County
91510th Street
�SSL1 }Ir
Greeley, CO 80631
AUG 0 ') 1991 I�
Re: Request for Release of Security L
Tower Energy Corporation
USR 717:85:64 ELL) COUNTY
ATTORNEY'S CFFICE
Dear Lee:
Several years ago, Mazuma Turnkey Contractors, Inc., a Colorado corporation which later changed
its name to Tower Energy Corporation, opened an account at Union Colony Bank to hold the post
completion security required by Development Standard 11 of Use by Special Review 717:85:64. This
account still exists, and now holds more than $6,700.
As we recently discussed, a fair reading of the °bonze, La Plata County and Greeley cases suggests
that counties and other local governments may not require the posting and maintenance of such post-
completion security in connection with oil and gas operations. Tower consequently would like to get
its money back from the Union Colony bank account, especially since it sold its interest in the
particular wells to Basin Exploration, Inc. nearly two years ago.
I enclose copies of the Resolution and Development Standards in USR 717:85:64, a recent bank
statement from Union Colony Bank concerning the account, and a possible form of bank request for
execution by Mr. Lacy as Chairman of the Weld County Board of County Commissioners.
If you have any questions, or if there's a better way to do this, please give me a call.
Thanks and regards,
William G. Crews, CPL
Attorney-in-Fact for
Tower Energy Corporation, formerly
Mazuma Turnkey Contractors, Inc.
enclosures
WGC/mm
cc: Ed Arco - Tower Energy Corporation - Denver
J. Michael Morgan, Esq. - Lohf, Shaiman & Ross, P.C. - Denver
a -r• 3-*9
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