HomeMy WebLinkAbout940279.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BIDDING PROCEDURE CONCERNING OIL AND GAS LEASE
AND ACCEPT OFFER TO LEASE MINERAL ACRES - SE'y S2, TIN, R64W
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 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:
Part of the SE* of Section 2, Township 1
North, Range 64 West of the 6th P.M. , Weld
County, Colorado, as more fully described
in Quit Claim Deed dated March 28, 1979 and
recorded in Book 866 at Reception #1787720,
Weld County, Colorado records, and
WHEREAS, Contex Energy Company is offering to lease the above described
mineral acres, containing 0.207 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, 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 Contex Energy Company
to lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
940279
•
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 21st day of March, A.D. , 1994.
BOARD OF COUNTY COMMISSIONERS
ATTEST:�r �/e1444 WELD COUNTY OLORADO
/ ,
Weld Co Any C erk to the Board � / /N.F.6
H. Webste , hairman
BY: v ye
Deputy Cle k to the Eo�xd\ a e K. Hall, Pro em
APPROV AS TO FORM: , c <ss�L�`
e000rrge . Baxter
J/ /
County Attorey Constance L. Harbert
12r Barbara J. Kirkmey
940279
Mid 360798 •
PAID-UP WELD COUNTY OIL AND GAS LEASE
Rev. 3/93 (Small Tract-Paid Up)
THIS AGREEMENT,made and entered into this day of March , 19_9_4_,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:
Contex Energy Company
1645 Court Place, Suite 212
Denver, CO 80202
hereinafter called Lessee.
WITNESSETH,that Lessor, for and in consideration of the sum of Two Hundred and No/100
($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 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 1 North, Range 64 West, 6th P.M.
Section 2 • a 0.207 acre parcel of land located in the SE1, as
more fully described in Quit Claim Deed dated March 28,
1979 and recorded in Book 866 at Reception #1787720,
Weld County, Colorado records.
and containing 0.207 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 pooiea 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 1434 REC 02380798 03/29/94 16 : 46 $0 . 00 1/004
F 0089 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 940279
,v , 140
•
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.
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 I p«Pe, and all
Lessee'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 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
2
3 1434 REC 02380798 03/29/94 16 : 46 30 . 00 2/004 940279
F 0090 MARY ANN FEUERSTEIN CL FR;{ X. RFrnpn'R ?aP r n nn nn
•
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.
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 T essor, 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 ;a 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.
1
B 1434 REC u^^2380798 )3/29/94 16 : 46 $0 . 00 /004
F 0091 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO , CO 9402,4
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
/Pi 'f / 4I I'67
ATTEST:
- G
Weld County
Clerk to the Board --9t(/ L,Atte,= ' i
by: 6` a X // / . . / /f�, Ir `G'
03/x3/99
LESSEE: l'Atex E rgy Company
ary Butler, President
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
The foregoing instrument was acknowledged before me this /6+./day of "Yfrt•.,..d ,199 ''t.
by
Ggrr terrier Pre..ri'.Le.v♦ a1 Co Are Eves+ y Ce-• , . �y �__
•
Witness my hand and official seal.
• Vv:nmissit E_
fI t 197 7Y 03 &, a..., o , Notary Public
CO 8d sJ1
-
B 1434 REC 02380798 03/29/94 16 : 46 $0 . 00 4/004
F 0092 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO , CO
4
940279
17D 4.7,grrf'ii e_ islo„LitTM'JF�N� f�- 'J •.
.. q•;•- --T, it TS, ne�xy:,T-s�5 �fi�rr...y�Vs::,:-., e.n...�t• ,,,,,,al-W-,
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` et 866 Nicardad el "" ? M
1787720 7)1LMa.oZ,n ' =
9.". .• Css :,W.:4 Can C1nk a Ilwvev - --
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24' m QUIT CLAIM DEED
THIS QUIT CLAIM DEEn made on this, the _') day of March,
e y arc ..
1979, by Dorothy Hammond Reed, a single woman, whose address is .F;y
,: - r 3427 West 45th Avenue, Denver, Colorado 80211, as Grantor, in -rt.'.
,< N
: .>i a consideration of Improving and widening to a width of 24 feet -i
q an existing field entrance approximately 100 feet to the South E-_2.
J
of a new County culvert adjacent to the property covered by
r.
this Deed and further in consideration of installing a new -
Y, • 24 foot wide field entrance approximately 100 feet Worth of -
-t;, the new County culvert located adjacent to the property covered tC--`f;
:;:, by this Deed, the construction of which has been c ompleted as ,
of the data of the execution of this agreement, said Grantor
`-t
hereby sells, devises and quit claims to WELD COUNTY, COLORADO, ^ t..
whose address is 915 10th Street, Greeley, Colorado 80631,
the following real property located in the County of weld and
s State of Colorado:
r
See Exhibit "B"
-.I (attached hereto)
This Quit Claim Deed executed the day and year first above . 'd
wr'.tten. gear .s." &Az. r
t
' Dorothy Hammond Reed
t: _
i - t STt1Tt Of COLORADO ) _ __
7:, - C [ )ss.
ptitTY pP' tNVER I .;-*is:.-- -
• _
- T foregoing instrument was acknowledged before me this
c day of / p ... • . , 1979. s. _
x. -
C "•�,
Notary Public i
My commission expires: c,agmermtwemsat luw , 7,.,' r, .,
- C -u•.
}r
Tr
940i :144.1-;!).
an -�-.-
866 '1787720 t.
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�'• •- Exhibit "B -
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t� A parcel of land located along the East line of Section 2, Township 1 North,
Range 64 West of the 6th P.::., Weld County, State of Colorado. _
Beginning at the !brtheast Corner of Section 2, Tamshir 1 ::..;h,
v Range 614 West, said corner being Station 95 • 63.00 BK and 95 + 22.12 Ali
1:- - with the bearing of the East northssouth section line bearing S 00-00-00W
and all other bearings contained therein being relative thereto.
•
More particularly described as follows:
1°-,- +
- Along East Section Lane S 00-00-00W 3178- • thence leaving
said Section Line S 90-00-COW 30' to the West R.O.W. Line of
..--- - - County Read 59; said ?hint to be True Point of Peginning; thence
continuing S 90-0O-0CA 30'; thence SO-oo-OC1: 300'; thence
r- S 90-00-OOE 30' to a Ibint on the West R.O.W. Line of Count' Road
[' .x.- 59; thence !:o-CO-0OE 300' along West R.O.U. Line to the 7k.:e Point
�.Xi of aeginning
! f'.'�• Said Parcel containes .107 Acres mote of less.
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CONTEX ENERGY COMPANY
1645 COURT PLACE
SUITE 212
DENVER, COLORADO 80202
(303)623-3444
Facsimile O03O234523
March 15, 1994
Board of County Commissioners •)
Weld County J;
P.O. Box 758
Greeley, CO 80632
RE: Offer to lease for oil and gas exploration
Township 1 North. Range 64 West, 6th P.M.
Section 2 : a 0.207 acre parcel of land in the SE:
as described in Book 866, Rec.#1787720
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
Contex Energy Company check in the amount of $210. 00 for the
minimum royalty bonus and filing fee.
If you have any questions regarding this offer or Contex Energy
please call me at the above number.
Thank you for your consideration of Contex Energy's offer.
Verypruly'7ours,
/Gar Butler
9407,79
ry r ,t l`' fs 1" 3 ke il4,hy,7n'airF 4r1'q •i. t1e'*,0,^ayi. at ¢ +i
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V4/ APR f979 •w
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�I tp 866 keco,ae0 at o'clock .�v h1 f
F / d
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178'7720byar v
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07_4 ter '_
Sado of Colorado, Weld Count Clerk a Recorder'
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f a ~,53 y.
•M; q QUIT CLAIM DEEDr'
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,i THIS QUIT CLAIM DEED made on this, the _S day of March,
• ^ rr. a 1979, by Dorothy Hammond Reed, a single woman, whose address isft
,,
i, E
3427 West 45th Avenue, Denver, Colorado 80211, as Grantor, in 4i
A f KJ
o consideration of improving and widening to a width of 24 feet
- ryrygg an existing field entrance approximately 100 foot to the South M,-
, r A of a new County culvert adjacent to the property covered by ..4, t.
- y •,„� this Deed and further in consideration of installing a new
+,.1A 24 foot wide field entrance approximately 100 feet North of ^,
rra z
* �; the new County culvert located to the
�' adjacent property covered •,,,*
si d ,.k"..
," oy this Deed, the construction of which has been completed as
_-trr of the date of the execution of this agreenent, said Grantor ?fir "'?
r hereby sells, devises and quit claims to WELD COUNTY, COLORADO,
whose address is 915 10th Street, ureeley, Colorado 80631, .$.;t.
-1 the following real property located in the County of Weld and `°t=
i,,
4I! State of Colorado:
.' See Exhibit "S" ;attached hereto) , : .
;t3 This :wit Claim Deed executed the day and year first above `
IA written. -
r rtjj
- &Leaf WA,“t+w..44 ;'
Dorothy Hammond Reed
,
a;1 STATE O7 COLORADO ) I ,r
..COUNTY pw ENvER )
lcrr,' • . ,:11108 fcregoing instrument was acknowledged before me this k4 x
'
d% , 1
-e day of /',/; t 1979.
,' Notary/Public
• r
My commission expires: o-,.rm�ef,Aetw iti Rk
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866 1787720 r`f!
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Exhibit "B"
•
A parcel of land locate-! .along the Fast line of Cecticn 7, Township 1 North,
Range P. vest of the ft^ P.1 , '^'d County, State of Loloredo.
Peginning at the '.:rtheast Corner of section 2, 1o0.: rh nnhip 1 ,.1.h,
Pantie f•a Vest, sail eo:Ter being 'tetion 95 + 63.n0 PE and 95 + 22.12 /4i
with the hearing cf the Fast nor11'-e'rth. section line leering E CO-00-0CW
and all oLbee tearing:: contained therein being relative thereto.
:bre particularly described as follas:
F. +
a Ai2ng Fast Section Line 2 C^-00-10W 3178 ; thence leaving 'lj',
said Section in_ ..C-C^ 3 to the West.t P. . line of ACCILT.
^o.:nty .d so; tau! 'pint to t Thee
ee Point of ?eginning; thence .,M�:
-
( continuing, g 9n_M CC1 10'; n .,--e :0-no-C7/ 30f1i; thence
i T
air sr theWest P.O.Y. fine of county Poi?
n , _ 37 along ..net 1t.0.;.. L;rr• to the Ti'-;., Point
of %, eionirg
.,.. P-ssr'r : _on-a ir.er, .. .' reres ra^• of less. k '
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