HomeMy WebLinkAbout930379.tiff RESOLUTION
RE: GRANT EXTENSION AND RATIFICATION OF OIL AND GAS LEASE TO CACHE
EXPLORATION, INC.
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, Weld County, Colorado, is the holder of a certain oil and gas
lease currently being leased by Cache Exploration, Inc. , and
WHEREAS, said lease covers land more particularly described as follows:
Township 5 North, Range 65 West, 6th P.M.
Section 30: WOW,
Weld County, Colorado
WHEREAS, William G. Crews, on behalf of Cache Exploration, Inc. , submitted
a request for extension and ratification of said oil and gas lease, and
WHEREAS, the Board deems it advisable to extend said oil and gas lease with
Cache Exploration, Inc. to, and until May 31, 1993.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the extension and ratification of oil and gas lease with
Cache Exploration, Inc. , pertaining to the above-described parcel to May 31, 1993
be, and hereby is, granted.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 26th day of April, A.D. , 1993.
BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUNTY, COLORADO
Weld County le 4i4 rd
Constance L. Harbert, Chairman
/4.-car,BY: Deputy /erke Board W. tubs4Pr4�d�l�"�' -6/ I
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APP AS TO FORM: ��
eorge Baxt r
2tiZ
County Attorney Dale a 1
Barbara J. Kirkm yer OO
930379
LEbo03 ce
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AR23318g5 EXTENSION AND RATIFICATION OF OIL AND GAS LEASE
Cache Exploration, Inc. is the owner of those oil and gas leases (the "Lease") covering the
W' NW'a of Section 30, Township 5 North, Range 65 West, 6th P.M., Weld County, Colorado
described on Exhibit A attached hereto.
In consideration of the sum of Ten Dollars,in hand paid,the receipt and sufficiency of which
en o are hereby acknowledged, the undersigned, whether one or more, does hereby agree that the term
o
of the Lease to which the undersigned is the Lessor or the successor to the Lessor shall be and is
▪ o hereby extended, with the same tenor and effect as if such extended term had been originally
U expressed in such lease, through May 31, 1993, and as long thereafter as oil or gas (including
a casinghead gas) may be produced from the lands covered by the involved Lease or lands pooled
o w therewith, subject to the conditions contained in the Lease.
o
•
a• w The undersigned, and each of them, hereby state that all payments, if any, necessary to
• extend the involved Lease to the end of its primary term, as herein extended and amended, have
o been fully and timely paid, and that the Lease is now in full force and effect in respect to all lands
covered thereby. For the same consideration, the undersigned do hereby (i) lease, let and demise
M unto Cache Exploration, Inc., its successors and assigns, subject to and under all of the terms and
provisions of the involved Lease, all interest the undersigned may now own or hereafter acquire in
• x� the W1/2NWV4 of said Section 30,whether or not correctly described in the involved Lease, and (ii)
• revive the involved Lease, as herein amended and extended, to any extent necessary.
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Z To simplify recording,one or more of these extensions may be recorded in the real property
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records with but one single set of Exhibit A pages attached.
Ei /�- nl
o IN WITNESS WHEREOF, this instrument is signed on this a-'1444 day of , 1993.
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CREWS & ZEREN
` PETROLEUM LAND CONSULTANTS
MAR 12 1993 ) 1223 20TH AVENUE,SUITE 2
GREELEY COLORADO 00631
au) (303)351-0]33 GREELEY
—D COUNTY 303( 3510 DENVER
FAX
X(303)351-0867
ATTORNEY'S OFFICE,,,,;
March 10, 1993
Dear Vaughan 21-30 Well Unit Mineral Owners:
Please excuse the use of a form letter, but we want to make certain all mineral owners receive
identical information.
Cache Exploration,Inc.has acquired the Vaughan 21-30 oil and gas well in the WV2NWV4 of Section
30, Township 5 North, Range 65 West, Weld County, Colorado. It was Cache's original intent to
plug and abandon the well for its salvage value. After conducting a review of the well's logs and
production records, Cache is now of the belief that the well may be returned to production if Cache
performs certain workover operations. . . expected to cost in excess of$20,000. Cache is willing to
proceed with such operations, but only if all mineral owners execute an extension and ratification
of their leases to assure Cache that title to the leases is sufficient to support such an expenditure.
We have enclosed your original (and a copy) of such an extension and ratification, along with
Cache's check to you in the amount of$10 as consideration and a stamped return envelope. Please
sign,have notarized, and return your original of the document in the enclosed envelope just as soon
as possible, retaining the "copy"for your files. If you have any questions, please feel free to call me
at the above numbers, or to call Ed Holloway of Cache Exploration, Inc. in Greeley at 353-1100.
We appreciate your prompt reply to our request.
Cordially,
•aa57
William G. Crews, CPL
Agent for Cache Exploration, Inc.
enclosures
WGC/mm
cc: Cache Exploration, Inc.
930379
BOARD OF COUNTY COMMISSIONERS
REVIEW/WORK SESSION REQUEST
DEPARTMENT: COUNTY ATTORNEY DATE: April 15, 1993
PERSON REQUESTING: Lee D. Mor i on, Assistant Weld County Attorney
Brief description of the problem/issue:
Cache Exploration has asked the lease holders to extend and ratify
terms of a lease in the West} North West} of Section 30, Township
5 North, Range 65 West of the 6th P.M. , Weld County, Colorado. The
County's interest goes back to a 1983 lease for 17 net mineral
acres, the County would be entitled .0081975 decimal interest in
the proceeds . Cache is intending to expend more money in reworking
the well and Ed Holloway has indicated that they are in the process
of actually doing the work over. He also indicates that the
request for extension and ratification is to insure that lessors do
not raise an issue of lack of production or improper shut in. He
indicates that it probably will make no difference whether the
County ratifies the lease at this stage and only if someone
actually challenges Cache' s right to continue to operate will there
be a change in the process they are following. If someone actively
challenges whether the leases have expired, he indicates that Cache
will simply shut the well down.
The well, prior to Cache taking over the well, was producing three
days a month. Since Cache has taken over they have produced 5 MCF
a day during the week and one to two barrels of oil and they hope
to get up to 50 MCF of gas and five barrels. The well itself is in
an area east of Evans and although spacing would allow a second
well within the 80 acres the second well could only be drilled
directionally since there is a trailer court on the other 40 acres
available under spacing.
What options exist for the Board?
1 . Ratify
2 . Do nothing.
3 . Challenge Cache's right to operate.
Recommendation to the Board:
Under the circumstances, there is no real benefit to the County in
refusing to sign the extension unless the County wished to contest
the extension of the lease. The likelihood for further
development, given the need for directional drilling appears small
and therefore the County would appear to benefit by ratifying the
lease.
LDM/db
pc: Bruce T. Barker
Attachments
Initial :
Approve Schedule
Recommendation Work Session Other
Baxter
Hall
Harbert
Kirkmeyer 'V
Webster
wercache.db
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