HomeMy WebLinkAbout930553.tiff RESOLUTION
RE: APPROVE REQUEST OF SOCO WATTENBERG CORPORATION 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, SOCO Wattenberg Corporation, through its agent, William G. Crews,
has requested that the bidding procedure be waived concerning an Oil and Gas
Lease on the following described mineral acres:
Township 6 North, Range 66 West, 6th P.M.
Section 26: NE4
Weld County, Colorado
WHEREAS, after review, the Board found that SOCO Wattenberg Corporation did
show good cause for waiving the bidding procedure on said Oil and Gas Lease, and
WHEREAS, SOCO Wattenberg Corporation is offering to lease the above
described mineral acres, containing 0.089 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from SOCO Wattenberg
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 SOCO Wattenberg Corporation, 1625 Broadway,
Suite 2200, 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 SOCO Wattenberg
Corporation, as hereinabove stated, be, and hereby is, accepted.
BE IT FURTHER RESOLVED that Weld County waives claims to royalties that
would have been paid had there been a lease which had been properly pooled.
930553
LE Obi
WAIVE BID PROCEDURE - SOCO WATTENBERG CORP.
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 21st day of June, A.D. , 1993.
�� BOARD OF COUNTY COMMISSIONERS
ATTEST:A � /, ��� ? WEL COUNTY, COLORADO
Weld County Clerk to the Board
DConstance L. arber , hairman
BY: Dputt' o the
Deputy Clerk to the B W. Webster, Pro-Tem
APPROV TO FORM: eji
eor E. Baxte
y Attorne Date .. � /
K. Hall
i L ,rk1/!>
arbara J. Kirkmey
930553
WELD COUNTY OIL AND GAS LEASE
AR2339428 (Small Tract)
THIS AGREEMENT, made and entered into this 16thday of June , 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:
SOCO Wattenberg Corporation, a Delaware corporation
1625 Broadwayy, Suite 2200
Denver, CO 56202
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of Two Hundred 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:
Township 6 North, Range 66 West, 6th P.M.
section 26 : A parcel in the NE14 more particularly described on attached
Exhibit A.
and containing 0.089 acres, more or less.
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
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
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
therewith; and operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall
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
thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences
additional drilling or re-working operations within ninety (90) days from date of cessation of production or from
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
or gas is produced from the leased premises or on acreage pooled therewith.
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 ar 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 K:\ctb\oilgas
B 1390 REC 02339428 07/01/93 15 : 32 $0.00 1/004 930553
r A )11 MADV xMM t'FTTRAC'T'TAT f T.F.RK s. RECORDER WELD CO. CO
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.
7. When requested by Lessor, Lessee shall bury Lessee'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
ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee 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 Lessee, and all Lessee's operations may he 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 Lessee's 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 leases.
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 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 R:\ctb\oilgas
B 1390 REC 02339428 07/01/93 15 : 32 $0 .00 2/004 930553
R nave M21RV ANN FE1ERSTEIN CLERK & RECORDER WELD CO, CO
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 possessed 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 UNTY, COLORADO
�F � am/ �
/ �� ` -
ATTEST:li6wr ,G'� /h
By:
Count y CTa Boa
Oh a3/cpri
LESSEE:
By:
William G. Crews, Agent
STATE OF COLORADO
as.
COUNTY OF WELD
The foregoing instrument was acknowledged before me this 14th day of June , 1993, by
Wi11>ani'G. Crews as Agent for SOCO Wattenberg Corporation, a Delaware
Cotpor'a-tj,on, on behalf of said corporation. •
l+" Witness my hand and official seal.
(n ; M comiselon expires:
✓y y/�^��c Notary Public
gyp;-•X•.... ..r
rT
930553
3 K:\ctb\oilgas
B 1390 REC 0233942E 07/01/93 15 : 32 $0 . 00 3/004
F n2'iS MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
Exhibit A
The lands covered by this oil and gas lease are situated in Weld County,Colorado,and are described
as follows:
Township 6 North. Range 66 West. 6th P.M.
Section 26: A parcel of land NE1/4 being more particularly described as follows:
Commencing at the North Quarter Corner of said Section 26 and considering
the North line of said NEVI of Section 26 to bear South 89°11'06" East with
all bearings contained herein relative thereto; Thence South 89°11'06" East
along the North line of said NE1 of Section 26, 1,131.76 feet; Thence South
00°48'54" West, 30.00 feet to the right-of-way line of the existing County
Road and the True Point of Beginning; Thence South 89°11'06" East along
said right-of-way line, 144.34 feet;Thence continuing along said right-of-way
line South 17°32'50"East, 144.34 feet;Thence along the arc of a curve to the
left whose central angle is 71°38'16" and whose radius is 200.00 feet and
whose long chord bears North 53°21'58" West,234.09 feet to the True Point
of Beginning, containing 0.089 acres.
B 1390 REC 02339428 07/01/93 15 :32 $0 . 00 4/004
F 0236 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
9::0553
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE,SUITE 2
GREELEY,COLORADO 80631
(303)351-0733 GREELEY
(303)
June 14, 1993 (3 3)351867-0 FAX
Board of Weld County Commissioners
Weld County
910 10th Street
Greeley, CO 80631
Re: Request for Small Tract Oil and Gas Lease
.089 acres in W' NEV4-26-6n-66w
Dear Commissioners:
Following up my conversation of June 7 with Lee Morrison, during which he confirmed that the
County would claim minerals under the .089-acre parcel of land acquired from Bernice Jones in a
deed recorded in Book 584 under Rec.No. 1505821 (copy enclosed for your reference), I obtained
production figures from the Colorado Oil and Gas Conservation Commission for the Walter Jones
1-26 well in the WV2NEY4,which has been producing since 1983. The well was drilled by Bellwether,
and in about 1988 all operations were taken over by Bracewell Development Company and Torch
Operating Company. They do not have accurate revenue figures back to 1983. However, on the
enclosed spreadsheet I have set forth the gross oil and gas production, and then used annual oil and
gas wellhead average prices to estimate the amount which would have been received had Weld
County been leased from the date of first production. As you can see, the production (even if the
gas price were increased by 50% to approximate the higher-than-average prices being paid in this
area through 1985) still does not equal the $200 consideration for a lease covering .089 acres.
I hereby request that the Board approve a lease to SOCO Wattenberg Corporation (the current
owner of the other leases in the unit) dated effective as of date of execution by the Board, but with
a resolution with wording to the effect that the $200 consideration paid for the lease includes all
back royalties to date of first production as if the lease were issued in 1983 and had been properly
pooled into the unit. A Crews & Zeren check for $200 and completed small-tract lease forms
accompany this letter.
If you have any questions or if I can provide any additional information, please let me know.
Cordially,
------------------
William G. Crews, CPL
enclosures
WGC/mm
930553
CREWS & ZEREN
PETROLEUM LAND CONSULTANTS
1223 28TH AVENUE SUITE 2
June 8, 1993 GREELEY, COLORADO 80631
Es
(303)351-0733 GREELEY
Lee Morrison, Esq. 303(303))351-O86)659-7710 DENVER FAX
Assistant County Attorney
Weld County
910 10th Street
Greeley, CO 80631PA4irjiTTroyERULNNE:lyc1:7909NS3FTypicE
Re: Request for Small Tract Oil and Gas Lease.089 acres in WV2NE'4-26-6n-66w
Dear Lee:
Following up our conversation of yesterday, during which you confirmed that the County would
claim minerals under the .089-acre parcel of land acquired from Bernice Jones in a deed recorded
in Book 584 under Rec. No. 1505821 (copy enclosed for your reference), I obtained production
figures from the Colorado Oil and Gas Conservation Commission for the Walter Jones 1-26 well in
the W' NE', which has been producing since 1983. The well was drilled by Bellwether, and in
about 1988 all operations were taken over by Bracewell Development Company and Torch Operating
Company. They do not have accurate revenue figures back to 1983. However, on the enclosed
spreadsheet I have set forth the gross oil and gas production, and then used annual oil and gas
wellhead average prices to estimate the amount which would have been received had Weld County
been leased from the date of first production. As you can see, the production (even if the gas price
were increased by 50%to approximate the higher-than-average prices being paid in this area through
1985) still does not equal the $200 consideration for a lease covering .089 acres.
I propose to the County that the Board approve a lease to SOCO Wattenberg Corporation (the
current owner of the other leases in the unit) dated effective as of date of execution by the Board,
but with wording to the effect that the $200 consideration paid for the lease includes all back
royalties to date of first production as if the lease were issued in 1983 and had been properly pooled
into the unit.
I will be out of town for three weeks beginning on June 17, so I would very much appreciate it if
you could set up this matter as an agenda item for the June 14 meeting of the Board. Please let me
know as soon as possible if this is possible.
If you have any questions or if I can provide any additional information, please let me know.
Regards,
William G. Crews, CPL
enclosures
WGC/mm
930553
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4.
D� KNOW 41.L *EN'BY THESE PRESENTS,That 7 HERNICE-'JONES
.1/4' .
� '1pf tM )•' County of Weld ,and State of Colorado,
il. •por the coonsllkratloa of other valuable Considerations and Ten - - - Dollars,
( . ,h hand paid,hereby sell and convey m Weld County, at Municipal Corporation,
Ii ',seed the County of Weld 'i : ,and Stale of Colorado,
� }the following real property, situate in the -County of ..Weld ,'
Ca., • tlnd State Of Colorado, to•wit: - '
\ ee--s 'A parcel of land located in the Northeast Quarter (NE+) of Section 26,
c.; pn; Township 6 North, Range 66 West of the Sixth Principal Meridian, Weld
• p.. i County, Colorado, being more particularly described as follows
r� p.. J Commencing at the North Quarter Corner (N Cor.) of said Section 26 and '
.li e° `,considering the North line of said Northeast Quarter (NE}) of Section 26
;i 0 .''to bear South 890 11 ' 06" East with all bearings contained herein relative
� .° thereto; Thence South 89° 11 ' 06" East along the North line of said
Northeast Quarter (NE}) of Section 26, 1 ,131.76 feet; Thence South 00°
48' 54" West, 30.00 feet to the right-of-way lino of the existing County
▪ .lot Road and the True Point of Beginning;
I4
•.":, I ',Thence South 890 11 ' 06" East along said right-of-way line, 144.31: feet;
r ' Thence continuing along said right-of-way line South 170 32' 50" East,
14x•.34 feet; Thence along the arc of a curve to the left whose central
{ j , angle is 71u 38' 16" and whose radius is 200,00 feet and whose long chord .
}•' - boars North 530 21 ' 58" West, 234.09 feet to the True Point of Beginning,
< . -:.containing 0.089 acres. a'
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91'
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.;,Iritnh all its appurtenances, and warrant the title to the same, subject to ;;h.
9p
t
' tti 1 Signed and delivered this 20th day of June ,A. D. 19 67.
L r In the presence of rue.<.1 e. instal (SEAL)
t;,. • Bernice Jones
(SEAL)
4. d:-.-17.' : . (SEAL) °
I9 ' STATE OF COLORADO, f",
I , '-e1'+SdCOUNTY OF WELD. 5"' N
• x1.!, The foregoing instrument was acknowledged belure me this.28th.....clay of shells �'3
gl4\ - d ' 1967 ,be Bernice Jones. fS
lot k f,1,"
nit 1 i WITNESS my hand and kcal seal.
v it C2.7').-,\\..i $44;eonlnlnslon 'vices . , 9 n','
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