HomeMy WebLinkAbout940650.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE
AND ACCEPT OFFER TO LEASE MINERAL ACRES - S31, T5N, R65W
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, 1625 Broadway, Suite 2200, Denver,
Colorado 80202, 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:
A tract in the NE,' (see attached) of
Section 31, Township 5 North, Range 65 West
of the 6th P.M. , Weld County, Colorado
WHEREAS, Snyder Oil Corporation is offering to lease the above described
mineral acres, containing .460 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 followin vote on the 11th day of July, A.D. , 1994.
rD BOARD OF COUNTY COMMISSIONERS
ATTEST: J / / WELD COUNTY, COLORADO
Weld County Clerk to the Board f n `
j W H. Webster, Chat'
BY: I
Deputy Clerk to the oa Dale K. Hall, P -Tem
APPROVED AS TO FORM:
Geor E. Baxter
County At orn Z,onstance L. Harbert
arbara J. Kirkm yer
��/ � / c i 50C0; MIL
940650
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this If day of T,,r , 1994 , 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, clo Weld County Centennial Center, 915 10th Street, Greeley, CO 8.0631, hereinafter called
Lessor, and:
Snyder Oil Coweiration
1625 Broadway, Suite 2200
Denver, CO 80202
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of Two Hundred Dollars
and 00/100 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 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:
er o Township 5 North, Range 65 West, 6th P.M.
o U Section 31 : A tract in the NEI (See attached)
o —
• U
,.] and containing .46 acres, more or less.
O pe
O S
1. It is agreed that the lease shall remain in force for a term of three (3) years from this date
O W+' and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on
41414
q acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of
the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled
O
o therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continued
CO in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled
Tul
r therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall
•• el elapse between the completion or abandonment of one well and the beginning of operations for the drilling of a
subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production
re A4
04 thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences
DO additional drilling or re-working operations within ninety (90) days from date of cessation of production or from
CM sa CM U date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations;
at or after the expiration of the primary term of this lease, this lease shall continue in force so long as oil
CO 'Y"' or gas is produced from the leased premises or on acreage pooled therewith.
ei H
n E
Co N 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that L
7 shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the
ell
N M primary term. Lessee may at any time or times during or after the primary term surrender this lease as to all or
ei D. any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release
CO PG or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered.
lee
N 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor one-eighth
O (1/8) of the proceeds received by Lessee,-payable monthly, for the oil, gas and other hydrocarbons produced and
U � saved from the leased premises.
P4 4. Where gets from a well capable of producing gas is not sold or used, Lessee may pay or tender as
s"a royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment
• eM
V O or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days
.-e O from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period
O P4 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 oleos 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.
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940650
Lr C /0
Revised 3/93
Small Tract Oil and Gas Lease
Page 2
6. Lessee shall have the right to use, free of coat 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 L ' 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. L hall have the right at any time to remove all of L '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 L 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 L '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 L ' 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 hewing 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 02398124 07/18/94 15: 45 $0.00 2/004
F 0845 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
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940650
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
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 (30) 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. Lessee shall 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
ATTEST: 41/ '
Weldothe Bo s
I
LESSEE:
Bye Vs 1 tde. , • 4:JO
Wade R. Hill, n
STATE OF COLORADO
) as.
COUNTY OF WELD 2^
The foregoing inat�t n�t� was acknowledged before me this ..fJ 1 day of (J —7241 . , 199y, by
Wade ,f'. Ni/l •
Q
Witness my band and official seal. �����J
My commission expires: Ski/Lt. IC7 "'^—
Notary Public
MY COMMISSION EXPIRES JAL L 1998
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B 1451 REC 02398124 07/18/94 15 : 45 $0.00 3/004
F 0846 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 940650
Snyder Oil Corporation November 10, 1993
Page 2
OWNERSHIP
Each interest tabulated below is an undivided interest and has been proportionately
reduced where appropriate.
Based upon the title data examined, and subject to the exceptions, comments, and
requirements set forth herein, the undersigned finds tide to the captioned lands and the leases,
tabulated herein, as of October 4, 1993, to be owned and encumbered as follows:
TRACT A. a .5 acre tract in the W/2NE/4, situated on the South side of the right-of-way
for the Lower Latham Ditch. as described in Deed at Book 260. Page 501, to be on the
south side of the present right-of-wav of the ditch of said party of the second part as said
ditch is now constructed over and across said land and lying immediately south of the old
original headgate of said second party. being the same land upon which the house and barn
of said second party are now located:
SURFACE AND MINERAL OWNERSHIP:
The Lower Latham Ditch Company All
c/o M. E. H. Smith
905 10th Ave.
Greeley, CO 80631
(Unleased)
TRACT B. described as begfpming at a point in the NE/4 of Section 31. from which the NW
corn r of Secti•on 31 bears N 63 deg 10 min W 5222 4 ft • th S 16 deg 21 mi E 300 ft.:
th. S 73 deg,39 min. W 180 ft.: to intersection of a right-of-wav line 30 ft. W from the . .
center line of proposed location of State Highway No. 49: th. in a general Northerly
direction on a 10 deg. curve parallel to said center line 370 ft.more or less to the point of
beginning (containing app. 20.000 sq. ft.. or .459 acres m/l1:
SURFACE AND MINERAL OWNERSHIP:
r
All
Weld County
(Unleased)
TRACT C. described as commencing at the SE corner. th.W 300 ft:along the S line of thet
NE/4. to the Westerly right-of-way line of the Union Pacific Railroad Company. th.
B 1451 REC 02398124 07/18/94 15:45 $0 .00 4/004
F 0847 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
940650
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