HomeMy WebLinkAbout930440.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, 1645 Court Place, Suite 212, Denver,
Colorado 80202, has requested that the bidding procedure be waived concerning
an Oil and Gas Lease on the following described mineral acres:
Township 6 North, Range 64 West of the 6th P.M.
Section 12: All that part of the E;SEt lying North of
and above the North Side Extension Ditch,
Weld County, Colorado
WHEREAS, after review, the Board found that Contex Energy Company 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 3.00 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.
930440
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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 17th day of May, A.D. , 1993.
ATTEST: p�� BOARD OF COUNTY COMMISSIONERS
WEL COUNTY, COLORADO
Weld County Clerk to the Board —nt l i /2.. --
Constance L. Harbert, hairman
BY: /`u' / tx„t EXCUSED DATE OF SIGNING (AYE)
Deputy Cler to the L.. d W. H ebster, Pro-Tern
APPROVFDAS TO FORM: �T.jj�7�x ..
� J � orge/ Baxte
_...2„,,,,y,, _ 7 z—_ 1
County Attorney ' Dais K. Hall
/& - .I /e/
Barbara J. Kirkmeye
930440
WELD COUNTY OIL AND GAS LEASE
A 22133901 (Small Tract)
THIS AGREEMENT, made and entered into this .1.44,4 day of May , 19 93, by and between WEIJ) 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, CO 80202
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O hereinafter called Lessee.
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U WITNESSETH, that Lessor, for and in consideration of the sum of Two Hundred and No/100
Q 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
O W grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive
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right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing
O 124 therefrom; oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines,
Vq-w Q and erection of structures thereon to produce, save and take care of said products, all that certain tract of land
ai situated in the County of Weld, State of Colorado, described as follows, to wit:
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(,.) Township 6 North, Range 64 West, 6th P.M.
cr a section 12 : all that part of the E}SEi lying North
o :n of and above the North Side Extension Ditch.
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M :-7 and containing 3.00 acres, more or less.
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r•i Z 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
N H and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on
lf1 H acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of
o U1 the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled
ar] therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continued
v-I D in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
O a\ 44 therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall
en elapse between the completion or abandonment o£ one well and the beginning of operations for the drilling of a
M 2 subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production
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• F4 thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences
O additional drilling or re-working operations within ninety (90) days from date of cessation of production or from
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date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations;
III 5at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil
CC or gas is produced from the leased premises or on acreage pooled therewith.
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r-I 0 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.
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
saved from the leased premises.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as
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 930440
LP C d
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.
M O 7. When requested by Lessor, Lessee shall bury Lessee's
O V q pipe lines below plow depth.
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8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without
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U the written consent of Lessor.
9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures placed
O [x] on said premises, including the right to draw and remove casing.
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O 0 10. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in
44 W ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been
2 furnished with notice, consisting of certified copies of all recorded instruments or documents and other
CO information necessary to establish a complete chain of record title from Lessor, and then only with respect to
.7
payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee.
CA a No present or future division of Lessor's ownership as to difference portions or parcels of said land shall operate
O to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without
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regard to any such division. If all or any assigned,
8 part of this lease is assi no leasehold owner shall be liable for
.--I x any act or omission of any other leasehold owner.
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r+) a 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as
V a recurring right, either before or after production, as to all or any part of the land described herein and as
,.y .Z to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate
N H covered 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
In
O 0) irrespective of whether authority similar to this exists with respect to such other land, lease or leases.
WLikewise, 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
O W filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any
onunit may include land upon which a well has theretofore been completed or upon which operations for drilling have
M Z theretofore been commenced. Production, drilling or reworking operations or a well shut in for want of a market
N a anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling
O or reworking operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere
Ua. herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
(s� royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion
Ri .`z. of the unit production that the total number of surface acres covered by this lease and included in the unit bear
V' el to the total number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to
03 l0 unitize, pool or combine all or any part of the above described lands as to one or more of the formations
N NO 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
• W 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.
2 K:\ctb\oilgas
930440
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
0 of a default of payment by Lessor, and be subrogated to the rights of the holder thereof.
CD
M O 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
p G7 created thereby, or based upon any violation of any statute, ordinance or regulation.
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O a, 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof including
n W 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
O the leased land so claimed or possessed by Lessee hereunder. In the event of any such default or failure, Lessor
W shall, before making any such cancellation, send to Lessee by certified mail, to the post office address of said
• rz lessee as shown by the records of Lessor, a notice or intention to cancel for such failure or default, specifying
O the same, stating that if within thirty (30) days from the date of mailing said notice, Lessee shall correct such
t•• failure or default, no cancellation will be made. If such failure or default is not corrected with thirty (30)
,y g4 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,
1.-, or further notice to Lessee.
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r\-I 16. All of the provisions of this lease shall be binding upon the heirs, personal representatives,
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N H successors and assigns of Lessor and Lessee.
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O � 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described
CC without the express written consent of Lessor.
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O [s] IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
Ch
M Z
M Z BOARD OF COUNTY COMMISSIONERS
en Z WELD -COUNTY, COLORADO
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61
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ATTEST:
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W VD
M N Weld Co ty Clerk to th Bo d
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en Gr4 By.
111 `j�`�-'/F7�3 A Aj
1" ,: .,, :=j p,. � LESSEE: tex E gy C mpany
% .1 ,_ � '• rt
\c��,�✓r-1. Gary utler, President
STATE OF COLORADO'1 i �ysp;.f e
as.
COUNTY OF WELD
/The foregoing instrument was acknowledged before me this /�T-day of Mal i V ___fff���• y
l`i Q. C'tief'_
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ni
Witness my hand and official seal. //;; �.�
My commission expires: kte IC
/ �• . Notar
'
ys t\b`kic
MY COMMISSION EXPIRES JAN. 1, 1996_
3 R:\ctb\cilgas
930440
CONTEX ENERGY COMPANY
1645 Court Place, Suite 212
Denver, Colorado 80202
(303) 623-3444
May 3, 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 64 West, 6th P.M.
Section 12 : All that part of the EzSE; lying
North of and above the North side
extension ditch
3 . 00 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.
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 trull yours,
Gar Bdtler
930440
LC
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