HomeMy WebLinkAbout911004.tiff ARea"779
RESOLUTION
RE: APPROVE RELEASE OF OIL AND GAS LEASE TO UNION PACIFIC RESOURCE COMPANY
O WHEREAS, the Board of County Commissioners of Weld County, Colorado,
00 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
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WHEREAS, the Board has been presented with a Stipulation and Release for
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,a approval from Union Pacific Resource Company, and
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• WHEREAS, said Stipulation and Release concerns the mineral rights to a
eR W parcel of ground located in the SW4 of Section 33, Township 9 North, Range 65
a West of the 6th P.M. , Weld County, Colorado, and
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a WHEREAS, upon review by the County Attorney's Office, it has been found
m a that Weld County does not hold title to said parcel, and
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rii x WHEREAS, after review, the Board deems it advisable to approve said
a Stipulation and Release, a copy of which is attached hereto and incorporated
m v herein by reference.
crlNH NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
----ix]• F County, Colorado, that the aforementioned Stipulation and Release with Union
o im Pacific Resources Company be, and hereby is, approved.
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rn D The above and foregoing Resolution was, on motion duly made and seconded,
c. w adopted by the following vote on the 19th day of August, A.D. , 1991.
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N Z BOARD OF COUNTY COMMISSIONERS
o ATTEST:I� ' ki ! WELD COUNTY, OLORADO
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as 04 Weld Countrygelerk to the Board
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fn O By: • '
N De ty Clerk to the Boa George Kenn dy, ro-Tem
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APPROVED AS TO FORM: EXCUSED
Constance L. Harbert
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"Sent A t ey L C. W. Kirby r
W. H. Webster
911004
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BURNS, FIGA & WILL, P.C.
J. KEMPER WILL ATTORNEYS AT LAW OF COUNSEL
PHILLIP S. FIGA ONE OTC, PENTHOUSE THREE HUGH A. BURNS
MOLLY SOMMERVILLE
CANDACE COLE FIGA 5251 DTC PARKWAY
GEOFFREY P. ANDERSON ENGLEWOOD, COLORADO 80111
EMILY KAHN KEMME
DANA L.EISMEIER TELEPHONE (303) 796-2626
NORMAN W. HIGLEY FACSIMILE (303) 796-2777
October 21, 1991
21
rLp CC,UNTY
Lee Morrison, Esq. ATTVr '�Y'S O;-r=ICE
County Attorney
915 10th Street
P. O. Box 1948
Greeley, Colorado 80632
Re: Stipulation and Release dated August 19, 1991
Between Union Pacific Resources Company and
Weld County
Dear Lee:
I enclose for your records a copy of the above-referenced Stipulation and Release
which has been executed by both a representative from Union Pacific Resources Company
and members of the Board of County Commissioners of Weld County. The Stipulation and
Release includes the recording information on it which indicates that it was recorded on
October 10, 1991 at Book 1313, Reception No. 02265809.
If you have any questions regarding this matter, please do not hesitate to call me.
Best regards,
Molly Sommerville
MS/dk
Enc.
cc: Kendor P. Jones, Esq.
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B 1313 REC 02265809 10/10/91 11: 2-8 $20 .00 1/004
AR2265809 F 1848 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
STIPULATION AND RELEASE
THIS STIPULATION made and entered into this 0day of ateeptsf, 1991
between UNION PACIFIC RESOURCES COMPANY ("UPRC"), with art99address for
business of P. O. Box 7, Fort Worth, Texas 76101-0007 and WELD COUNTY,
COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,
for its respective interests, with an address of c/o Board of County Commissioners, Weld
County Centennial Center, 915 10th Street, Greeley, Colorado 80631 ("Weld County").
WHEREAS, Union Pacific Railroad Company (the "Railroad"), a sister company to
UPRC, acquired all of the interest, including both the surface estate and the mineral estate,
in certain property located in Weld County, Colorado, described as Section 33, Township
9 Noah, Rang,. 65 West (the: "described prein1scs') by patina dated Jdnuary 10, i903 from
the United States of America; and
WHEREAS, the Railroad conveyed the surface estate only of the described premises
to Myra B. Cowdin by deed dated April 6, 1909 and recorded in the office of the Clerk and
Recorder for Weld County on April 22, 1909 at Book 233, Page 200, pursuant to which the
Railroad reserved unto itself and its successors and assigns all of the "oil, coal and other
minerals" within or that underlie the described premises; and
WHEREAS,the Railroad quitclaimed the minerals which it reserved in the described
premises to a sister company, Union Pacific Land Resources Corporation ("UPLRC"), by
quitclaim deed dated April 1, 1971 which in turn conveyed certain interests in the minerals
which had been quitclaimed to it to Champlin Petroleum Company by mineral deed dated
March 30, 1976; and
WHEREAS, Champlin Petroleum Company is a predecessor in interest to UPRC;
and
WHEREAS, WELD COUNTY caused certain interests in the W2NW4 and the SW4
of the described premises to be sold at a tax sale pursuant to which a Treasurer's Deed was
issued on May 19, 1938 in favor of Weld County, a quasi-municipal corporation and its
successors and assigns (the "Deed"), which deed was recorded in the office of the Clerk and
Recorder of Weld County on May 23, 1938, at Book 1026, Page 327; and
WHEREAS, Weld County as lessor granted an oil and gas lease (the "Lease") dated
August 8, 1990 to Polaris Energy, Inc. ("Polaris") which was recorded in the Office of the
Clerk and Recorder of Weld County on August 17, 1990 at Book 1273, Reception No.
02223779 and which was stated to cover the SW4 of the described premises and which
purported to grant to Polaris an exclusive lease to drill for, develop and produce oil and gas
which underlies the property described in the Lease; and
WHEREAS, Polaris assigned the Lease to Kappa Nu II Partnership ("Kappa Nu")
by assignment dated December 21, 1990 ("Assignment") which was recorded in the Office
9114°-
B 1313 REC 0«65809 10/10/91 11: 28 ,20 .00 2/004
F 1849 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
of the Clerk and Recorder of Weld County on April 24, 1991 at Book 1296, Reception No.
02248062.
NOW, THEREFORE, the parties stipulate and agree as follows:
1. That by virtue of the tax sale and the Deed, Weld County did not foreclose
upon, encumber in any way or affect the mineral rights in the described premises owned by
any of the Railroad, UPLRC or UPRC.
2. That Weld County owns no mineral rights in the described premises, and Weld
County agrees that the Lease and Assignment give no right to Polaris or to Kappa Nu to
drill for, develop and produce oil and gas which underlies the property described in the
Lease and Assignment.
3. That Weld County hereby releases, remises and relinquishes unto UPRC all
right, title and interest in the mineral estate in the described premises and in the Lease and
Assignment.
4. This Stipulation and Release may be recorded by either party with the Clerk
and Recorder of Weld County, Colorado.
IN WITNESS WHEREOF, the parties have executed this Stipulation and Release
as of the day and year written above.
ATTEST: UNION PACIFIC RESOURCESCOMPANY
By Ue ,c.
BOARD O4t±,
TY COMMISSIONERS
WELD COUNTY, COLORADO
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are
WELD COUNTY CLERK 1 -� `'�
ly
TO THE BOARD
By: A !Li����3�-� A,',X
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B 1313 REC 02265809 10/10/91 11 : 28 $20 .00 3/004
F 1850 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
ACKNOWLEDGEMENTS
STATE OF TEXAS )
) ss.
COUNTY OF TARRANT )
Acknowledged before me this �3eDda ai , 1991 by
EI ivJ 1. r"1. as lift-drx6f ten rai o UNION PACIFIC
RESOIO RCESCOMPANY. J
lair]i"I —y lead d official seal.
6 Donna L. Oaktay
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My commission expires: R // A-1 9 `7'
STATE OF COLORADO )
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COUNTY OF WELD )Acknowledged before me this 3 day of (,/. 4.Q.,4 c,� ,—
1991 by
emotayU a
E. (ACV as �IQ I R"(ALI of BO D OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
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". G. My Commission Expires Jan y1 .i c;ao
M .:eonunission expires:
9110^ 4.
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R 1313 REC 02265809 10/10/91 11 :28 $20.00 4/004
F 1851 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknow edged before f9e this stayof 4i0[457 1991 by
r4'�FOk°TF Kt/WE-DV as 064/RtIft9a 7C4,k of BOARD OF COUNTY
`COMMISSIONERS WELD COUNTY, COLORADO.
r'� O 'WITLESS my hand and official seal.
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My commission expires: My Comcussio a Expires January 10,1;,)5 --
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Ack o ledged before me this 013 day of it.il6(/,S7 1991 by
_ as ealfit/SS/pt 6e, of BOARD OF COUNTY
C2OMM1S IONERS WELD COUNTY, COLORADO.
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. �, ,WITNESS my hand and official seal.
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My commission expires: My Commissar Wires
STATE OF COLORADO )
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COUNTY OF WELD )
kn wledged before me this �? day of 7-9!(o((S r•, 1991 by
7:u )h CZiFAS7e,E--, as eaN/M/SS/OitJf� i of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
-;.•''VVIT'NESS my hand and official seal.
6,4r,e / a/c:1
MyCammission / jj
'Myccommission expires: Expires January 10,19
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STIPULATION AND RELEASE
THIS STIPULATION made and entered into this P8day of , 1991
between UNION PACIFIC RESOURCES COMPANY ("UPRC"), with a address for
business of P. O. Box 7, Fort Worth, Texas 76101-0007 and WELD COUNTY,
COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,
for its respective interests, with an address of c/o Board of County Commissioners, Weld
,p o County Centennial Center, 915 10th Street, Greeley, Colorado 80631 ("Weld County").
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w o WHEREAS, Union Pacific Railroad Company (the 'Railroad"), a sister company to
UPRC, acquired all of the interest, including both the surface estate and the mineral estate,
a in certain property located in Weld County, Colorado, described as Section 33, Township
0 3 9 North, Range 65 West (the "described premises") by patent dated January 16, 1903 from
• x the United States of America; and
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o WHEREAS, the Railroad conveyed the surface estate only of the described premises
w to Myra B. Cowdin by deed dated April 6, 1909 and recorded in the office of the Clerk and
a Recorder for Weld County on April 22, 1909 at Book 233, Page 200, pursuant to which the
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Railroad reserved unto itself and its successors and assigns all of the "oil, coal and other
a minerals" within or that underlie the described premises; and
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rn u WHEREAS, the Railroad quitclaimed the minerals which it reserved in the described
c, z premises to a sister company, Union Pacific Land Resources Corporation ("UPLRC"), by
F quitclaim deed dated April 1, 1971 which in turn conveyed certaininterests in the minerals
co o z which had been quitclaimed to it to Champlin Petroleum Company by mineral deed dated
w March 30, 1976; and
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rI4WHEREAS, Champlin Petroleum Cotnpany is a predecessor in interest to UPRC;
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v a WHEREAS, WELD COUNTY caused certain interests in the W2NW4 and the SW4
a of the described premises to be sold at a tax sale pursuant to which a Treasurer's Deed was
issued on May 19, 1938 in favor of Weld County, a quasi-municipal corporation and its
co
m o successors and assigns (the "Deed"), which deed was recorded in the: office of the Clerk and
N Recorder of Weld County on May 23, 1938, at Book 1026, Page 327; and
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WHEREAS, Weld County as lessor granted an oil and gas lease (the "Lease") dated
August 8, 1990 to Polaris Energy, Inc. ("Polaris") which was recorded in the Office of the
Clerk and Recorder of Weld County on August 17, 1990 at Book 1273, Reception No.
02223779 and which was stated to cover the SW4 of the described premises and which
purported to grant to Polaris .an exclusive lease to drill for, develop and produce oil and gas
which underlies the property described in the Lease; and
WHEREAS, Polaris assigned the Lease to Kappa. Nu II Partnership ("Kappa Nu")
by assignment dared December 21., 1990 ("Assignment") which was recorded in the Office
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of the Clerk and Recorder of Weld County on April 24, 1991 at Book 1296, Reception No.
02248062.
o NOW, THEREFORE, the parties stipulate and agree as follows:
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M o 1. That by virtue of the tax sale and the Deed, Weld County did not foreclose
U upon, encumber in any way or affect the mineral rights in the described premises owned by
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• any of the Railroad, UPLRC or UPRC.
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o x 2. That Weld County owns no mineral rights in the described premises, and Weld
tn.w County agrees that the Lease and Assignment give no right to Polaris or to Kappa Nu to
z drill for, develop and produce oil and gas which underlies the property described in the
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Lease and Assignment.
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... La 3. That Weld County hereby releases, remises and relinquishes unto UPRC all
� z right, title and interest in the mineral estate in the described premises and in the Lease and
w Assignment.
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� z 4. This Stipulation and Release may be recorded by either party with the Clerk
w and Recorder of Weld County, Colorado.
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a IN WITNESS WHEREOF, the parties have executed this Stipulation and Release
aN z as of the day and year written above.
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N E ATTEST: UNION PACIFIC RESOURCE COMPANY
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ACKNOWLEDGEMENTS
STATE OF TEXAS )
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COUNTY OF TARRANT )
0 o Acknowledged before me this day of , 1991 by
o as of UNION PACIFIC
‘r, o RESOURCE COMPANY.
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5 Acknowledged before me this day of /quota sr 1991 by
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a z COMMISSIONERS WELD COUNTY, COLORADO.
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STATE OF COLORADO )
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COUNTY OF WELD )
Ackn !edged before nip this a,3 day of /21-(CoLLS7, 1991 by
as (1#4/40/44t/ 75,7pc of BOARD OF COUNTY
COMMISSI NERS WELD COUNTY, COLORADO.
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" Acknoyvledged before me this op day of Aoas t , 1991 by
as (,dyy/N/SSY/litlEte. of BOARD OF COUNTY
a CociA WIISSIONERS WELD COUNTY, COLORADO.
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A knowledged before me this 4223day of At6aST 1991 by
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•COMMI,S‘SIONERS WELD COUNTY, COLORADO.
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STATE OF COLORADO )
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as of BOARD OF COUNTY
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COMMISSIONERS WELD COUNTY, COLORADO.
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BURNS, FIGA at WILL, P.C.
J. KEMPER WILL ATTORNEYS AT LAW OF COUNSEL
PHILLIP S. FIGA ONE OTC, PENTHOUSE THREE HUGH A. BURNS
MOLLY SOMMERVILLE
CANDACE COLE FIGA 52S1 OTc PARKWAY
GEOFFREY P. ANDERSON ENGLEWOOD, COLORADO SOH
EMILY KAHN KEMME
DANA L. EISMEIER TELEPHONE (3031796-2626
NORMAN W. HIGLEY FACSIMILE (303) 796-2777
August 19, 1991
HAND DELIVERED
The Board of County Commissioners
of Weld County, Colorado
915 Tenth Street
P. O. Box 1948
Greeley, Colorado 80632
Re: Oil and Gas Lease Issued by Weld County to Polaris Energy, Inc.
Township 9 North, Range 65 West
Section 33: SW4
Ladies and Gentlemen:
I represent Union Pacific Resources Company ("UPRC") with regard to an oil and
gas lease dated August 8, 1990 between Weld County, Colorado as lessor and Polaris
Energy, Inc. as lessee ("Oil and Gas Lease") covering the property located in Weld County
(the "Property") referenced above. As you are aware, UPRC asserts that it owns the
minerals that underlie the property that is the subject of the Oil and Gas Lease, and I have
requested by my letter dated June 26, 1991 to Lee Morrison,Assistant County Attorney, that
the Board of County Commissioners execute a stipulation in which the County disclaims any
interest in the minerals (See Attachment 1). I have provided Lee Morrison with copies of
documents which substantiate the claim that UPRC owns the minerals and with duplicate
originals of the stipulation which UPRC requests that the County execute.
The purpose of this letter is to provide you with a summary of information which may
be helpful to you in your decision to enter into a stipulation and to set forth the position
which UPRC takes on the matter.
1. Property Information: The property that is the subject of the Oil and Gas
Lease is property which Union Pacific Railroad Company (the "Railroad") acquired by
patent from the United States in 1903. The Railroad transferred the surface estate to all
of Section 33 to Myra B. Cowdin by warranty deed dated April 6, 1909 (See Attachment 2).
341.1091
BURNS, FIGA & WILL, P.C.
The Board of County Commissioners
of Weld County
August 19, 1991
Page 2
The warranty deed conveyed to the grantee all of the surface, and it reserved to the
Railroad "all oil, coal and other minerals within or underlying said lands." The effect of the
warranty deed was to sever the ownership of the mineral estate and the surface estate in
that the mineral estate continued to be owned by the Railroad.
I understand from Lee Morrison that Weld County at one time owned the surface
estate to certain portions of Section 33 pursuant to a Treasurers Deed dated May 19, 1938
which issued to the County because of a tax sale in 1928. The Treasurers Deed specifically
provides in the legal description that is included in it that the property is conveyed to the
County "except U.P.R.R. Co. reservations" (See Attachment 3). Weld County issued an oil
and gas lease dated August 8, 1990 to Polaris Energy, Inc. ("Polaris") covering the SW4 of
Section 33'. Polaris assigned the Oil and Gas Lease to Kappa Nu II Partnership ("ICappa
Nu") and Kappa Nu and later assignees may have made subsequent assignments. The Oil
and Gas Lease provides for a primary term of three years and a bonus payment of $30.00
an acre.
2. Ownership of the Minerals: I understand from Lee Morrison that the County
does not dispute that it does not own the minerals'. Further, in accordance with my request,
Mr. Morrison has attempted to get representatives from Polaris and Kappa Nu to execute
releases for the Property. Polaris, however, appears to take the position that it will not
execute a release unless the County refunds the bonus payment it paid for the lease, and the
County is not inclined to provide the refund to Polaris.
3. UPRC Position: UPRC believes that the Oil and Gas Lease and the
assignments of the Oil and Gas Lease constitute a cloud on its mineral title to the Property.
This is the case even though the County in the Oil and Gas Lease purports to expressly
recognize in the warranty deed the mineral reservation which the Railroad created in that
the very act of granting an oil and gas lease carries with it the implication that the lessor
believes that he owns the property or property interest that he is leasing.
'It appears that the only basis upon which the County could have believed that it had
the right to grant an oil and gas lease was the interest it acquired through the Treasurers
Deed.
'I have provided the County with a legal analysis as to why the County took no interest
in the minerals pursuant to the Treasurers Deed in my letter dated June 26 to Lee
Morrison.
BURNS, FIGA & WILL, P.C.
The Board of County Commissioners
of Weld County
August 19, 1991
Page 3
The practical effect to UPRC will be that UPRC will be damaged because the
Property is less marketable as an oil and gas property than it would be if the title to the
minerals were clear. In the event that UPRC cannot persuade the County to provide it with
a stipulation and Polaris and its assignees to provide it with releases, a potential lessee or
farmoutee will review title to the mineral estate and understand that in any drilling title
opinion performed on the Property the attorney who provides the opinion will recommend
that the title be cleared. The attorney who prepares the title opinion would probably
recommend either that the operator get a stipulation or quitclaim deed from Weld County
and releases from the lessee and subsequent assignees or that the operator may otherwise
need to clear title pursuant to a quiet title action.
The Colorado Statutes at C.R.S. 38-35-109(3) provides a remedy to the owner of
property whose title has been unjustly clouded by a recorded document (See Attachment 4).
The statute provides that a person who records a document which purports to create a lien
on real property and who knows or who has reason to know that the document is groundless
or is otherwise invalid, among other things, is liable to the owner of the real property for the
greater of not less than $1,000.00 or actual damages. The owner of the real property is also
entitled under the statute to reasonable attorneys' fees. The statute provides further that
a person who benefits from such a recorded document is also liable for damages and
attorneys' fees. The statute has been interpreted by case law to not be limited to apply to
cases in which the document purports to create either a statutory or common law lien, but
also has been held to apply to all documents which create a cloud on title to real property.
See People v. Forgey, 770 P.2d 781 (Colo. 1989); People v Marston, 772 P.2d 615 (Colo.
1989).
The Colorado Legislature clearly intended to create a remedy for parties whose real
estate title is improperly clouded and to create a penalty for those who record documents
which are invalid and groundless and which create a lien or cloud on the title.
4. Conclusion: UPRC requests that the County and Polaris work out any dispute
they have between themselves and not hold documents to clear the ownership of the
minerals in the Property as hostage in the dispute. UPRC again requests that the County
�nr
BURNS, FIGA & WILL, P.C.
The Board of County Commissioners
of Weld County
August 19, 1991
Page 4
Commissioners execute the duplicate originals of the stipulation which I enclose with this
letter.
Very truly yours,
7-rent-,4277:17722Ge"--
Molly Sommerville
MS/dk
Encs.
cc: Lee Morrison, Esq.
Bill Watson
Kendor P. Jones, Esq.
Alan Woodard, Esq.
21.1.1Y),y1
BURNS, FIGA & WILL, P.C.
ATTORNEYS AT LAW OF COUNSEL
J. KEMPER WILL
PHILLIP S. FIGA ONE OTC. PENTHOUSE THREE HUGH A.BURNS
MOLLY SOMMERVILLE 6261 DTC PARKWAY
CANDACE COLE FIGA
GEOFFREY P. ANDERSON ENGLEWOOD, COLORADO SOW
EMILY KAHN KEMME
DANA L.EISMEIER TELEPHONE 13031 796-2626
NORMAN W. HIGLEY FACSIMILE (303) 796-2777
June 25, 1991
ATTACHMENT
1
Lee Morrison, Esq.
Assistant County Attorney
915 Tenth Street
P. O. Box 1948
Greeley, Colorado 80632
•
Re: Oil and Gas Lease Issued by Weld County to
Polaris Energy, Inc.
Township 9 North. Range 65 West
Section 33: SW4
Dear Lee:
This letter is a follow up to our conversation of June 6 and the exchange by us of
certain documents related to the ownership of minerals which underlie the above-referenced
property.
I provided you with a copy of a deed dated April 6, 1909 pursuant to which Union
Pacific Railroad Company transferred the surface of Section 33 in Township 9 North, Range
65 West (the "described premises") to Myra B. Cowdin and reserved the mineral estate for
itself and its successors and assigns. You provided me with a copy of a Treasurer's Deed
dated May 19, 1938 ("Deed") pursuant to which Weld County was granted interests in a
portion of the described premises identified in the Deed as the WZNW4 and the SW4. The
Deed specifically provides in the legal description that is included in it that the property is
conveyed "except U.P.R.R.Co. reservations". We also have determined that Weld County
issued an oil and gas lease dated August 8, 1990 to Polaris Energy, Inc. ("Polaris") which
covers the SW4 of Section 33 and that Polaris thereafter assigned the oil and gas lease to
Kappa Nu II Partnership.
From the documents which I have provided to you it is clear that the mineral estate
was severed from the surface estate prior to both the date that the property was sold for a
deficiency in taxes and that Weld County acquired the property pursuant to the Deed. Case
law is clear that a party which receives a tax deed secures title to no greater interest in the
311.021.
BURNS, FIGA & WILL, P.C.
Lee Morrison, Esq.
June 25, 1991
Page Two
property than was owned by the party whose interests were sold for taxes. See, for example,
Pyles v. Portland Gold Mining Co., 233 P. 618, 76 Colo. 598 (1925) and Gilpin Investment
Co. v. Perigo Mines Company, 421 P.2d 477, 161 Colo. 252 (1967). Several Colorado cases
affirm that the rule of law in Colorado is that where minerals have been severed from the
surface estate and the property is thereafter sold for a deficiency for taxes assessed against
the owner of the surface, the party which claims the property under the tax deed gets only
the surface estate, and the rule of law holds true regardless of whether or not the minerals
have been the subject of a separate assessment and regardless of the language which
describes the property in the tax deed. See for example, Johnson v. McLaughlin, 242 P.2d
812, 125 Colo. 298 (1952); Mitchell v. Espinosa, 243 P.2d 412, 125 Colo. 267 (1952);
Webermeier v. Pace, 552 P.2d 1021, 37 CA 546 (1976), affm'd 563 P.2d 950, 193 Colo. 157
(1977).
From case law it is clear that the County could acquire only the surface estate in the
applicable portion of the described premises from the tax sale and took no interest in the
mineral estate in that the debtor whose property was sold because of the tax deficiency
owned the surface estate only at the time of the tax sale. Further, Weld County owned no
interest in the oil and gas pursuant to which it could issue a valid oil and gas lease to Polaris.
In order to clear the title to the mineral estate in the described premises, I enclose
duplicate originals of a Stipulation and Release which I request on behalf of Union Pacific
Resources Company that the County execute. I also enclose duplicate originals of Releases
which I request that you ask representatives from Polaris and Kappa Nu II Partnership to
sign. Please return all executed documents to me so that I may record them.
If you have any questions regarding this matter, please do not hesitate to call me.
Best regards,
BURNS, FIGA & WILL, P.C.
i
Molly Sommerville
MS/dk
Encs.
cc: Kendor P. Jones, Esq.
31.1004
RELEASE
In consideration of One Dollar ($1.00) and other consideration, the receipt and
sufficiency of which is acknowledged, Polaris Energy, Inc. hereby releases, remises, and
relinquishes to Union Pacific Resources Company, all of its right, title and interest in and
to that certain oil and gas lease dated August 8, 1990, between WELD COUNTY,
COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD
as lessor and POLARIS ENERGY, INC. as lessee recorded in the office of the Clerk and
Recorder of Weld County on August 17, 1990 at Book 1273, Reception No. 02223779 and
the property subject to such lease located in Weld County and described as follows:
Township 9 North. Range 65 West
Section 33: SW4
EXECUTED at , on
POLARIS ENERGY, INC.
By
ACKNOWLEDGEMENT
STATE OF )
) ss.
COUNTY OF )
Acknowledged before me this day of 1991 by
as of POLARIS ENERGY, INC.
WITNESS my hand and official seal.
My commission expires:
RELEASE
In consideration of One Dollar ($1.00) and other consideration, the receipt and
sufficiency of which is acknowledged, Polaris Energy, Inc. hereby releases, remises, and
relinquishes to Union Pacific Resources Company, all of its right, title and interest in and
to that certain oil and gas lease dated August 8, 1990, between WELD COUNTY,
COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD
as lessor and POLARIS ENERGY, INC. as lessee recorded in the office of the Clerk and
Recorder of Weld County on August 17, 1990 at Book 1273, Reception No. 02223779 and
the property subject to such lease located in Weld County and described as follows:
Township 9 North. Range GS West
Section 33: SW4
EXECUTED at , on
POLARIS ENERGY, INC.
By
ACKNOWLEDGEMENT
STATE OF )
) ss.
COUNTY OF )
Acknowledged before me this day of 1991 by
as of POLARIS ENERGY, INC.
WITNESS my hand and official seal.
My commission expires:
31.€0?,1
STIPULATION AND RELEASE
THIS STIPULATION made and entered into this _ day of , 1991
between UNION PACIFIC RESOURCES COMPANY ("UPRC'), with an address for
business of P. O. Box 7, Fort Worth, Texas 76101-0007 and WELD COUNTY,
COLORADO, a political subdivision of the STATE OF COLORADO, acting by and
through the BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD,
for its respective interests, with an address of c% Board of County Commissioners, Weld
County Centennial Center, 915 10th Street, Greeley, Colorado 80631 ("Weld County").
WHEREAS, Union Pacific Railroad Company (the "Railroad"), a sister company to
UPRC, acquired all of the interest, including both the surface estate and the mineral estate,
in certain property located in Weld County, Colorado, described as Section 33, Township
9 North, Range 65 West (the "described premises") by patent dated January 16, 1903 from
the United States of America; and
WHEREAS, the Railroad conveyed the surface estate only of the described premises
to Myra B. Cowdin by deed dated April 6, 1909 and recorded in the office of the Clerk and
Recorder for Weld County on April 22, 1909 at Book 233, Page 200, pursuant to which the
Railroad reserved unto itself and its successors and assigns all of the "oil, coal and other
minerals" within or that underlie the described premises; and
WHEREAS, the Railroad quitclaimed the minerals which it reserved in the described
premises to a sister company, Union Pacific Land Resources Corporation ("UPLRC'), by
quitclaim deed dated April 1, 1971 which in turn conveyed certain interests in the minerals
which had been quitclaimed to it to Champlin Petroleum Company by mineral deed dated
March 30, 1976; and
WHEREAS, Champlin Petroleum Company is a predecessor in interest to UPRC;
and
WHEREAS, WELD COUNTY caused certain interests in the W2NW4 and the SW4
of the described premises to be sold at a tax sale pursuant to which a Treasurer's Deed was
issued on May 19, 1938 in favor of Weld County, a quasi-municipal corporation and its
successors and assigns (the "Deed"), which deed was recorded in the office of the Clerk and
Recorder of Weld County on May 23, 1938, at Book 1026, Page 327; and
WHEREAS, Weld County as lessor granted an oil and gas lease (the "Lease") dated
August 8, 1990 to Polaris Energy, Inc. ("Polaris") which was recorded in the Office of the
Clerk and Recorder of Weld County on August 17, 1990 at Book 1273, Reception No.
02223779 and which was stated to cover the SW4 of the described premises and which
purported to grant to Polaris an exclusive lease to drill for, develop and produce oil and gas
which underlies the property described in the Lease; and
WHEREAS, Polaris assigned the Lease to Kappa Nu II Partnership ("Kappa Nu")
by assignment dated December 21, 1990 ("Assignment") which was recorded in the Office
311.0/71.
of the Clerk and Recorder of Weld County on April 24, 1991 at Book 1296, Reception No.
02248062.
NOW, THEREFORE, the parties stipulate and agree as follows:
1. That by virtue of the tax sale and the Deed, Weld County did not foreclose
upon, encumber in any way or affect the mineral rights in the described premises owned by
any of the Railroad, UPLRC or UPRC.
2. That Weld County owns no mineral rights in the described premises,and Weld
County agrees that the Lease and Assignment give no right to Polaris or to Kappa Nu to
drill for, develop and produce oil and gas which underlies the property described in the
Lease and Assignment.
3. That Weld County hereby releases, remises and relinquishes unto UPRC all
right, title and interest in the mineral estate in the described premises and in the Lease and
Assignment.
4. This Stipulation and Release may be recorded by either party with the Clerk
and Recorder of Weld County, Colorado.
IN WITNESS WHEREOF, the parties have executed this Stipulation and Release
as of the day and year written above.
ATTEST: UNION PACIFIC RESOURCE COMPANY
By
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:
WELD COUNTY CLERK
TO THE BOARD
By:
ACKNOWLEDGEMENTS
STATE OF TEXAS )
) ss.
COUNTY OF TARRANT )
Acknowledged before me this day of 1991 by
as of UNION PACIFIC
RESOURCE COMPANY.
WITNESS my hand and official seal.
My commission expires:
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknowledged before me this day of 1991 by
as of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
My commission expires:
-3-
31.10'21
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknowledged before me this day of 1991 by
as of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
My commission expires:
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknowledged before me this day of 1991 by
as of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
My commission expires:
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknowledged before me this day of 1991 by
as of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
My commission expires:
.l1.1.W''!"e
-4-
STATE OF COLORADO )
) ss.
COUNTY OF WELD )
Acknowledged before me this day of 1991 by
as of BOARD OF COUNTY
COMMISSIONERS WELD COUNTY, COLORADO.
WITNESS my hand and official seal.
My commission expires:
3 .10?4
-5-
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253 Conveyancing and Recording 38-35-109 ii r .,2,,,, p_
I y ., er:t.... .44. .:
see 26 Dicta 321 (1949). For article. "Market- Papers Should Appear of Record?", see 34 I .,y .i"e t't H+ k?ys...,...;-.0
able Title: What Certifiable Copies of Court Dicta 7(1957). i r i+ !I.,.-.41' .it as ,yt
Y Y.-
38-35-108. Reference to some other instrument affects only the parties I 4 ` )}'
(hereto. When a deed or any other instrument in writing affecting title to c-t.-.. .-.. •:age r.-
real property has been recorded and such deed or other instrument contains i t,"ice ,. "':•'iv
a recitation of or reference to some other instrument purporting to affect �' * f'k{" ,'�rs "
title to said real property, such recitation or reference shall bind only the,, i, ._,,g
parties to the instrument and shall not be notice to any other person whatso- ;.''
ever unless the instrument mentioned or referred to in the recital is of record t : a' hR;'
in the county where the real property is situated. Unless the same is so r%it. ii."1::-, „'I
I recorded, no person other than the parties to the instrument shall be required
to make any inquiry or investigation concerning such recitation or reference.
All such recitations or references contained in deeds and instruments ^` '. ti ,, tr lirly;
1 ri}S4r;..,:,-
recorded prior to March 28, 1927, shall, after the expiration of one year from ! � r;� Cr,M � .,
March 28. 1927, cease to he notice unless the instrument referred to in said k' "�'"� ,e .•
reservation, exception, or reference is actually recorded within said one-year .' 0... ":a �' it -'7'
riot. - ff'� `'St'T re.. .
I Source: L. 27, p. 589, § 7; CSA, C. 40, § 113; CRS 53, § 118-6-8; C.R.S. 1 q;L' � " . ..`
1963. § I I8-6-8. ₹'114 t k,#1�ff
^� .4.../...,,11/2,1
}�,
Ira reviews. For article,"Curative Statutes Fees-Krey, Inc., Colo. _. 617 P.2J ,.....0; 4, c.,+Xt
of Colorado Respecting Titles to Real Estate". 1188(1980). vs
see 26 Dicta 3'-1 (1949). For article. "Convert- Description by reference to a prior deed I .,ra; :cm s
ing a Duplex: Party Wall Declaration and recorded in the same county is sanctioned by nr + r, -..�
Other Considerations", see 11 Colo. Law. this section. Linville v. Russell. 168 Colo.459. %y 4;. rtiw `+I
1201(1982). 452 P.2d 18(1969). I „ar ✓
Section limits general rule. The general rule Applied in Rocky Mt. Fuel Co. v. Clayton 4 r p- r}�4 -^«4'-
: that recitals in conveyances in the purchaser's Coal Co.. 110 Cola 334, 134 P.'-d 1062(19431; 4....✓t' ,. '", �^^,V
chain of tide are binding on him has been nar- Swofford v. Colorado Nat'l Bank._Colo. q -;,, i.F �•/.:,
rowed in Colorado by this section. Page v. App._.628 P.2J 184(1981). ' t.'' 'c Y',Y.*,s
> - 1
♦ t 4.
38-35.109. Instrument may be recorded -validity of unrecorded instruments I +�afi ,<4: ;-�
- liability for fraudulent documents. (1) All deeds, powers of attorney, agree- > �'
ments. or other instruments in writing conveying, encumbering, or affecting i #'`4f , '
the title to real property, certificates, and certified copies of orders, judg- ', v';,y
men's, and decrees of courts of record may be recorded in the office of the F F
county clerk and recorder of the county where such real property is situated. ! r3, >�
and no such instrument or document shall be valid as against any class of viiir
persons with any kind of rights, except between the parties thereto and such "t .`� °
as have notice thereof, until the same is deposited with such county clerk ».` r 4 h.t,
and recorder. In all cases where by law an instrument may be filed, the filing 4F I °
thereof with such county clerk and recorder shall be equivalent to the record- ?
ti
ing thereof, and, except for statements filed pursuant to the "Uniform Com- '�r'n--
mercial Code", title 4, C.R.S. 1973, the recording thereof in the office of
such county clerk and recorder shall be equivalent to the filing thereof. Ir,
(2) All deeds dated after January 1, 1977, and recorded with the county , '; -C :f
clerk and recorder pursuant to subsection (I) of this section shall include
a notation of the legal address of the grantee of the instrument, including
road or street address if applicable. Any such deed submitted to the county ',,-;.,`,41-. -.,...r. r...;-,-
clerk and recorder lacking such address shall not be recorded and shall be ' ���.. -1.,,,r,„,r t
,`. ::,
Y� R
ATTACHMENT t4
q . s
•=xr.
13.1 ., 1... .: N
"
> «- ,
c
Vin' -
, :y;YS..
4: r . , f `ff,� asr
38-35-109 Property- Real and Personal 254 255
I
returned to the person requesting the recordation. Acceptance of a deed by the working interest in an
the county clerk and recorder in violation of this subsection (2) shall not make Page v. Fees-Krey. Inc.. _
such deed invalid. A notation as required in this subsection (2) may be made P.2d 1lxx(19xu).
by a person other than the grantee after the execution of the deed. limy protection effected.
subsequent purchasers I.cff.
(3) Any person who offers to have recorded or filed in the office of the every deed to be recorded b
county clerk and recorder any document purporting to create a lien against any effect as against su:h r.
real property, knowing or having a reason to know that such document is I v. Alexander. 50 Colo 37
forged or groundless, contains a material misstatement or false claim, or is L.R.A. (n.s.) 328. 19128
otherwise invalid, shall be liable to the owner of such real property for the F.590; Lewin Ci v.92II.Telluride 1.`
sum of not less than one thousand dollars or for actual damages caused i F Applied intr Gillett) v. Gall
thereby, whichever is greater, together with reasonable attorney fees. Any (1877); First Nat'l Bank s. I
grantee or other person purportedly benefited by a recorded document which App ?71. 3^ P. 35711x4'1:
v. Cohen. 7 Culp. App. 341.
creates a lien against real property and is forged or groundless, contains a Shannon s. Timm. 22 Colo
material misstatement or false claim, or is otherwise invalid who willfully (1896); wahrenberger v. W.
refuses to release such document of record upon request of the owner of 200. 45 P. 518 (18961: Sim
the real property affected shall be liable to such owner for the damages and col". App. 554. 80 P. 4.4 I
attorney fees provided for in this subsection (3). Rowland. 4s cola. n2-. u
Brinker v. Malloy. 53 Cobs
(4) Anyone who violates the filing limitations of subsection (3) of this I (1912): Brackett v. merlin
section commits a class 1 misdemeanor and shall be punished as provided I 524, 135 P. I I In(19131:CI.0
in section 18-1-106, C.R.S. 1973. v. Atencio. 74 Colo. 17. 2
Steller v. Winegar. 75 Cal.
Source: L. 27, p. 590, § 8; CSA, C. 40, § 114; CRS 53, § 118-6-9; C.R.S. (ma): Donahue v. Iconic
1963, § 118-6-9; L. 76, p. 753, § 2; L. 80, p. 708, § 1. Co.,81 Colo. 244.254 P.9x,
rel. Federal Land Bank c.GI
106 P.2d 479 (1940): Stew;
1. General Consideration. This section Is constitutional, and does not Colo. 484. 289 P'd 416
II. Instruments to Which Section violate the 14th amendment to federal consti- McBee. 161 Colo. 130. 4't
Applies. tution. Moore v. Chalmers-Galloway Live Plew v. Colorado Lumber
III. Notice. Stock Co.,%Colo.548, RI P.2d 950(1932). App. 557,481 P.2d 127(1970
A. Record as Notice. Evident purpose of this section is to provide v.Groussman.29 Colo.App
B. Notice of Unrecorded an effectual remedy against the loss accruing • (1971);Shamrock Land&C:
Instruments. to subsequent purchasers of real estate arising •
30 Colo. App. 127. 4x9
IV. Priorities. from the existence of secret or concealed con- Thomas & Son Transf. Liras
veyunces thereof unknown to the subsequent
A. General Principles. 40 Colo. App. 1511. 574 P._I
B. Illustrative Cases. purchaser. Hallett v. Alexander, 50 Colo. 37, I % Colo. 386. 586 P.2d I
114 P. 490, 34 L.R.A. (ns.) 328, 19128 Ann. Brown. Colo. A 535.hi
Cas. 1277 (1910; Lewin v. Telluride Iron 1 pp'
IL L GENERAL CONSIDERATION. Works Co.,272 F.590(8th Cir. 1921). IL INSTRUDIENTS TO II
Am.Jur.2d.See 66 Am.Juc2d,Records and Recording acts have been enacted in APPLIES.
response to a need to provide protection for •
Recording laws,§ 157.
C.J.S.See 7fi C.J.S..Records,§32. purchasers of real property against the risk of Bond for cume3anre of
prior secret conveyances by the seller.Page v. assignment by the obligee o
t-aw reviews. For article, "Curative Statutes Fees-Krey, Inc., Colo. _, 617 P.2d bond for the conveyance of
of Colorado Respecting Titles to Real Estate", 1188(1980), i clearly within the provision,
see 26 Dicta321 (1949). For article, "The This section was not enacted for the benefit 1 of this section and, unless
Perennial Problem of Security Priority and of lienholders and the owners of incumbrances take effect as against a sub
Recordation". see 24 Rocky Mt. L. Rev. 180 upon real estate only,but for all bona fide pur- purchaser or encumbrance
(1952). For article,"Conclusiveness of United chasers as well.McMuririe v.Riddell,9 Colo. McFarran v.Knox.5 Colo.:
States Oil Shale Placer Mining Claim Patents". 497, 13 P. 181(1886). Quitclaim deed effectual
see 43 Den. L. Ctr. J. 24 (1966). For note, Applicability of section.This section applies property. A quit claim deer
"Creditor's Rights in Colorado and the Fed- to a deed which was theretofore executed but pass the title to real estate
eral Tax Lien Act of 1966",see 40U.Colo.L. withheld from record eight years before the the purchaser accepting st.
Rev.433(1968). For comment on Eastwood v. statute became operative and two years after notice of prior rights.will bt
Shedd, 166 Colo. 136. 442 P.2d 423 (1968), the passage of the act. Moore v. • as if his deed contained full
appearing below, see 41 U. Colo. L. Rev.290 Chalmers-Galloway Live Stock Co.,90 Colo. ' runty. Bradbury v. Davis. '
(1%9). For note, 'Mx Colorado Recording 548, 10 P.2d 950O932). Delta County Land&Cattle
Act: Race-Notice or Pure Notice?", see 5I The recording act applies to an instrument Colo. App. 316. 68 P.985 11
Den.L.J.(1974). creating an overriding royalty carved out of�' I Finance Consul. Mining Co
�w,
' I,�y�cn �� ..;4';)
255 Conveyancing and Recording 38-35-I09 i � ' �''''� ;C.
"
the working interest in an oil and gas lease.lr P. 484 (1905); Hallett v. Alexander. 50 Colo. ! , 4 ' +'f€t k k V'v
Page v. Fees-Krey, Inc.,_Colo. ,617 II 37, 114 P. 490, 34 L.R.A. (n.s.) 328, 1912B ! ;e '4 0k y+�l ' '
P.2d 1188(1980). Ann. Cas. 1277 (1911); Kelsey v. Norris, 53 + Veit a How protection effected. The protection of Colo.3O6, 125 P. 111(1912). I 4 ° ,<"
subsequent purchasers is effected by requiring A contract for future conveyance of lands is I ( a�vdf" s\"'•"' �� •;z-
every deed to be recorded before it can be of within subsection (1), and an assignment by I t,••( 3'' � ,sue t ; r'I
any effect as against such purchasers. Hallett the purchaser of his right under such contract. R �e ,•3..,tYl c',
I v. Alexander, 0 Colo. 37, 114 P. 490, 34 not recorded, is without effect as to a creditor :z�
L.R.A. (n.s.) 328. 1912B Ann. Cas. 1277 of such purchaser who, without notice of the hq •"r y,I �7z,a- --.?
(1911);Lewin v.Telluride Iron Works Co.,272 assignment,levies an execution upon the land. i 4 + c ,`' '
F.590(8th Cir. 1921). Salisbury v. La Fitte,57 Colo.358, 141 P.484 ' r , a "'t � eti,
Applied in Gillett v. Gaffney, 3 Colo. 351 (1914). "� , ° .+ - `.;•a',
0877); First Nat'l Bank v. Campbell, 2 Colo. Deed of release Is a deed affecting title to real
App. 271, 30 P. 357(1892);Gates Iron Works estate. Delta County Land & Cattle Co. v. p' 'a,, ^,t;'(ar: ,t
v. Cohen. 7 Colo. App. 341,43 P. 667(1896); Tulcott, 17 Colo.App.316,68 P.985(1902). '27,< ',a• c 'dr'
Shannon v. Timm, 22 Colo. 167, 43 P. 1021 Contract of joint adventure which gives a ti
a -' -t +'^r
(1896); Wahrenberger v. Wald, 8 Colo. App. party an equitable interest in the real estate § ' w
200. 45 P. 518 (1896); Smith v. Russell, 20 involved is one "affecting the title" thereto :,012v+F >
Colo. App. 554. 80 P. 474 (1905); Mulford v. under subsection(1),and is recordable.Austin
Rowland. 45 Colo. 172, 100 P. 603 (1909); v.Stephen,89 Colo. 177,300 P.364(1931). z.•••;. "D. ;,,fit rc_ 4
Brinker v. Malloy, 53 Colo. 186, 125 P. 507 Water adjudication decrees. The court 2M�3y•rtF- f 'x� -x-
(1912); Brackett v. McClure. 24 Colo. App. recommended that a certified copy of water r �'t'
524, 135 P. 1110(1913);Clay,Robinson&Co. adjudication decrees be filed in the county r:(
Y }. '' s � a NC
v. Atencio. 74 Colo. 17. 218 P. 906 (1923); clerk and recorder's office, as permitted by v+ k 'YM1`•'‘ ,�' A,,w
Steller v. Winegar. 75 Colo. 500, 226 P. 858 subsection (1), to give notice as there •ty ets s^°w' '-''1
(1924); Donahue v. Kohler-Mc Lister Paint provided. Davis v. Hurt. 81 Colo. 10, 253 P. "4e {fr• y',
! Co..81 Colo.244,254 P.989(1927);People ex 394(1927). .e +may. its
ref. Federal Land Bank v.Ginn, 106 Colo.417, Overriding royally carved out of working7.;
r` �",
106 P.2d 479 (1940); Stewart v. Lamm, 132 interest in oil and gas lease is an interest in real
Colo. 484, 289 P.2d 916 (1955), Doyle v. property and is therefore subject to the rules fin 4� c'e; `-`-.'
x
McBee. 161 Colo. 130, 420 P.2d 247 (1966); of priority of this article. Fees-Krey, Inc. v. , +}};;� aM»� . r•1
Piew v. Colorado Lumber Prods., 28 Colo. Page, 42 Colo. App. 8, 591 P.2d 1339(1978). $' '!k '
App.557.481 P.2d 127(1970);First Nat'l Bank rev'd on other grounds, _ Colo. _,617 ` v ' �a Y
v.Groussman.29 Colo.App.215,483 P.2d 398 P.2d 1188(1981). V. , ° _ i �s,�,
(1971);Shamrock Land&Cattle Co.v.Hagen, Spouse's interest following filing of ;F yr A
30 Colo. App. 127, 489 P.2d 607 (1971); dissolution proceeding. Whatever interest a + +`fit s' .�''r'
Thomm& Son Trmsf. Line v. Kenyon,Inc., wife has in her husband's property upon the ,'.• 1-1s.7;,&,& ��j�__t',�1"S,��?���--.
40 Colo. App ISO, 574 P.2d 107(1977),off'd, filing of a dissolution proceeding is still subject pUIs HI?" •'_ Y;�';of
% Colo. 386, 586 P.2d (1978); Brown v. to the requirements of Colorado's recording �" a , •` -,•, srl
Brown.43 Colo.App.535,608 P.2d 840(1980). laws. If the wife does not record, the +.' •i; E'--sz- d >~'
ex-husband's trustee in bankruptcy may ` a w 'y
11. INSTRUNIENTS TO WHICH SECTION t'2' 7
acquire superior rights. In re Harms, 7 B.R. �+�},{+ } c t
APPLIES. - 398(D.Colo. 1980). 7f'a` -4 1,4, y 74:-C-
Bond for conveyance of real estate. The J, s ►
assignment b the obligee or his assignee of a 111• NOTICE. I , ir >< "ti3:
B by E 8 — ;TA's,.:144 r ,
bond for the conveyance of real estate comes A. Record as Notice. 'r
Ai x %.
clearly within the provisions of subsection(1) I ;ww a --,: yr.-R£ t.p��
of this section and, unless recorded will not This section is a pure notice statute. I 4; •a•
r +ytfe. £
take effect as against a subsequent bona fide Fees-Krey, Inc. v. Page,42 Colo.App.8,591 .. w -+sY3 .; ''
purchaser or encumbrancer without notice. P.2d 1339(1978),rev'd on other grounds, I '` `t a a
McFarran v.Knox,5 Colo.217(1880). Colo. ,617 P.2d 1188(1980);Page v.Fees- ! 7,�,'. : 4ik TA.
Quitclaim deed effectual to pass real estate Krey, Inc., _ Colo. _, 617 P.2d 1188 ! -e ,'
property. A quit claim deed is as effectual to (1980). I 44 .'L• :•::,,,. '''' ''
pass the title to real estate as any other, and Recording of deeds under this section is notice
the purchaser accepting such deed, without to all the world of the interest in land held by `tuf,"„ •t•576'•.'17.--"---
of"� l:
notice of prior rights.will be as fully protected the person recording. Botkin v.Pyle,91 Colo. �7 k;-4,-4,1
as if his deed contained full covenants of war- 221, 14 P.2d 187 0932). a. , t sO.v��":-"3d;
ranty. Bradbury v. Davis,5 Colo. 265(1880); Purchaser may rely upon records. If, upon w' 'tt,, '�x. �_
Delta County Land&Cattle Co.v.Talcott, 17 their face,the records are complete,and show r AY ','
Colo. App. 316,68 P.985(1902);Houlahan v. that the title is good,in the absence of informs- - �'�y
Finance Consol. Mining Co.,34 Colo. 365,82 lion to the contrary from any other source,he ic r r !.}"°
i
}.n l �^
adife:A..At'ar re , is
ia' ' 1 0 w "X. ,,k
VI ..' t F' -'4Cdt
r a /-.vof '
j ,.
Jilt; o."4
t r,
„.�;*'�"-'3r •"-x'°:.'xa'tP4`5.. .x7'7,'4`}a 4sv a;�?' ,1^m `7 x':xm w r?,tP:� a ypn-,.,+x. +s '� .RilM` °•` y'. �� air �'yr :
•
38-35-109 Property- Real and Personal 256 257
may safely rely upon them.Della County Land the same tract of land.McMurtrie v.Riddell,9 The purchaser whose
& Cottle Co. v.Talent!, 17 Colo. App.316,68 Colo.497, 13 P. 181(1886). filed for reeord is entitled
P. 906(1'X12). See Perkins v. Adams. I6 Colo. Unrecorded deed Ineffective against creditor obtains the title. rcgardle
App. %,63 P.792(1901):King v.Ackroyd,28 without notice. An unrecorded deed does not execution. Houb,hun v
Colo.488,66 P.9(16(1901). take effect as against an execution creditor Alining Co..34 Colo. 366.
And purchaser is bound by record. A without notice. Knox v.McFarrun.4 Colo. 586 Where two trust deeds
purchaser of real estate is bound to know what 0879); McMurtrie v. Riddell. 9 Colo. 497. 13 payment of the purchas,
the records disclose concerning the title,and if P. 181 (18%6); Jerome v. Carbonate Nat'l they are of equal dignity
they indicate the existence of some outside Bank, 22 Colo. 37, 43 P. 215(18%);Western the one which is recorded
condition by which it may be affected, he is Chem. Mfg. Cu. v. McCaffrey,47 Colo. 397, senior lien of the two.
bound to investigate, and he is charged with 107 P. 1081, 135 Am.St.R.234(19I0);Hallett Colo.240.2%6 P.'_75 275(1931
knowledge of the facts to which the investigu- v. Alexander, 50 Colo. 37, t 14 P. 490, 34 •
k .A junior deed first re,
lion would lead. Delta County Land&Cattle L.R.A. (n.s.) 328. 1912B Ann. Cos. 1277 purchases in good faith.i•
• Co. v, Totem!, 17 Colo. App. 316. 68 P. 985 (1911)• deed not recorded. Ee1s,-
(1902). See Perkins v. Adams. 16 Colo. App. And as to bona fide purchasers. An 306. 125 P. 11111912).
96.63 P.792(19111);King v.Ackroyd,28 Colo. unrecorded deed, though binding upon the This section is a "race-t
481(.66 P.906(1901). grantor, his heirs, and devisees, is a nullity as Mg priori!)to a second gr
Unless otherwise provided by statute.a pur- to bona fide purchasers or encumbracers the instrument wilhout no
without notice. Hallett v. Alexander,5(I Colo. vey:mce and gets his t
chaser is bound by recitals in conveyances or
other instruments of transfer in his chain of 37. 114 P. 490, 34 L.R.A. (n.s.) 328, I912B ahead of the prior instn,
1 title even where the instrument containing the Ann. Cas. 1277 (1911);Carroll v. Kit Carson Shedd. 166 Colo. 136.442
recitals is not recorded. Page v. Fees-Krey, Land Co., 24 Colo. App. 217, 133 P. 148 Order of judgment
Inc.,_Colo._,617 P.2d 1188(1980). (1913). transcripts tiled. Fyuic,hh
I Creditor is charged with knowledge of home- Notice constructive if means exist to obtain benefit ul judgment iwJn
knowledge. Notice may be constructive or the transcripts of fiftieth,
stead claims through recording statute, and his
+ lack of knowledge through inadvertence would implied from the fact that there existed means Lupton State B:mk v.Uur
be immaterial. American Heritage Bank & of knowledge which the party did not use. _.626 P.2d 757(1481),
Trust Co. v. Trees. 35 Colo. App. 147, 532 Jarumillo v. McLoy, 263 F. Supp. 870 (D. Attachment lien takes pi
1( P.2d 380(1974). Colo. 1%7). corded lisle. the lien of
Notice or lark(hereof to joint tenant is irrele- All instruments affecting title have sane encumbrance within the n
• van) to the determination of validity of the standing for recording purposes. All (I). and takes precedence
iI conveyance.Carus»ck v. Place, I%%Colo.3(13, instruments affecting the title to real property •
tide or interest.Of w fuck t.
535 P.2d 197(1975), are given the same standing for recording pur- had no notice at the time
� Recording in office of federal bureau of land poses and,by the terms of subsection(I),they Perkin v. AJ:uns. I6(',d.
Imanagement is not constructive notice to a may all be recorded, and if they are not (19111).
S
person a m:acquiring an interest property in Col- recorded, they are without validity as against
orado. Fees-Krey, Inc.v. Page,42 Colo.App. any class of persons holding any kind of rights
%, 591 P.2d 1339 (1978), rev'd on other except as between the parries themselves and 38-35-I 111. Lis pc
grounds, Colo. 617 P.2d 1188 those who have actual notice of the I pendency of :m act'
(198(). unrecorded instrument. Plew v. Colorado filing thereof 1)e no
Lumber Prods., 2% Colo. App. 557. 4%1 P.2d right. title. interest,Status of purchaser of leased properly. Hay- -
ing notice of tenancy by virtue of the lessee's 127(1970)' nO[ICe from any gram•
•
possession, the purchaser of leased property Joint tenant not protected from unrecorded
has a duty to inquire of the lessee concerningdeed. A joint tenant is not in the"class of per-
sans with an kind of rights"in the property, Source: L. 27, p.
its rights in the leased property,and such pur- y 8 P a y. 1963. § I I8-6-I0.
•
chaser takes subject to all rights which would and thereby is not protected from an
have been revealed by reasonable inquiry, unrecorded deed. Carmack v. place, 188 Colo, i
including the lessee's rights of first refusal. 303,535 P.2d 197(1975). Cann reference: Fn
Defense of bona fide purchaser must he pre-
Cohen v. Thomas & Son Transf. Line, 1%
Colo.386.586 P.2d 39(1978). sented by answer unless it appears by the com- law rrs 4.'14. For :mile.
plaint. Allen v, Blanche Gold Mining Co.,46 of Colorado Respecting Ti'
B. Notice of Unrecorded Instruments. Colo. 199,102 P. 1072(1909). see 26 Dicta 321(1944).
Purpose of subsection (l)• The meaning and • IV. PRIORITIES. ! Effect of filing lis mod
intent of subsection (I) is that no prior unre- A. General Principles. AskerlunJ.96 Colo.'_7.34
corded conveyance or contract, affecting the Instrument first recorded has priority. As 38.35-11 I. Option
title to land, shall take effect as to any subse- between two truss deeds on the same property instruments in R'fiiin
quent bona fide purchaser without notice, or
ax to any one who, in good faith and withoutexecuted al the same time and as a part of the
sametransaction,the instrument first recorded to real pmperiy unde
notice of a prior unrernrded deed or otherisfirst inright. Brayv. Trower,87 Colu.240,
instrument,acquires a lien or incumbrance on ered to the purchase
III
286P.275(1930), of more than one y(
.1-1.0:7:
.s. .y,,.
257 Conveyancing and Recording 38-35-111 �'�v+g�w'1�° '', sr;`
H S
it The purchaser whose conveyance is first B. Illustrative Cases. a ",,� r `�,, :r s 4,,�++,,ys, f
filed for record is entitled to u preference,and .. strp,.;'.t„' YJf,. • >'
obtains the title, regardless of the date of its l)onee with duly recorded instrument entitled e A''�
execution. Houlihan v. Finance Consol. to protection.The donee of real property,who k,opol.
1z v j, - •4 - -.
Mining Co..34 Colo 365,82 P.484(1905). has duly recorded the instrument of convey ' Sri �.p?. A a#1.��J
Where two trust deeds are given to secure once, is entitled to the protection of the Colo- I q .'' 4 . js Bt� •. e
payment of the purchase price of property, radio conveyancing and recording act. t s Y�,_ � Y --
they are of equal dignity in this respect, and Eastwood v. Shedd, 166 Colo. 136, 442 P.2d -4;,M si w4 1 ` 'the one which is recorded first constitutes the 423(1%8).
senior lien of the two. Bray v. Trowel-, 87 Failure to file assignment. Where plaintiff '� s � DV
5.
Colo 240.286 P 275(1930). neglected to avail himself of the permission ^ .. C.A.
A junior deed full recorded, to one who afforded by subsection (I) to file his assign- � 'v1`fs�'cr r - 'e •Y >��"'
purchases in good faith,is preferred to a prior ment, his equity must be held inferior to the I , a � s ' n
deed not recorded. Kelsey v.Norris,53 Colo. equity of a subsequent purchaser of the mort- , ^1, '?�" '?. .`5, fY;.`�•'fi'
316, 125 P. 111(1912). gaged property, who relied solely upon the I lig l� o 'l-4+ liar.. - 1
This section is a "race-notice statute"grant- record tide,which showed on its face an unen- . tltil r r o4yy`f
ing priority to a second grantee only if he takes cumbered title n his remote grantor. Steller v. 2'g,',�) s v ee e 4-44 • °.:
the instrument without notice of the prior con- Winegar.75 Colo.500.226 P.858(1924). �• !1,..t.`:; -1.:-..:*t7 '-:, .-4 4'
veyance and gets his instrument recorded Judgment lien superior to secret lien created _ + 'r- 1rY g �'-
ahead of the prior instrument. Eastwood v. by oral agreement. A judgment lien was held I
Shedd. 166 Colo. 136.442 P.2d 423(1968). superior to any secret lien or trust existing in '- 1_ +'
oki
Order of judgment creditors is order favor of the trustee created by oral agreement & �`; �_r
transcripts filed. Equitable liens accrue to the between the trustee and the cesmis que trust of t 4
benefit of judgment creditors in the order that which the judgment creditors had no notice. n "+` a , 3-t '1`,'
the transcripts of judgment were filed. Fort Teller v. Hill, 18 Colo. App. 509, 72 P. 811
Lupton State Bank v. Murata._Colo.App. (PXB). 'tie,q E�'40'
y
_,626 P.2d 757(1981). Judgment under creditor's bill deemed bind- i -,..1'‘,4-,'r t .•
Attachment lien lakes precedence over unre- ing on purchasers from debtor. A judgment �` v ' `
corded line. The lien of an attachment is an under a creditor's bill subjecting debtor's 4 z * t
encumbrance within the meaning of subsection interest in lands to plaintiff's claim, is binding o; 4 ...I.'''.�./
(I). and takes precedence over an unrecorded on purchasers from the debtor. although they `I 'F.4..1-. yl- —4
title or interest.of which the attaching creditor were not parties to the suit, their deed being s , • tl„-..p 11,.
had no notice at the time of his attachment. unrecorded at the time the action was (C 41 ,•
Perkins v. Adams. 16 Colo. App.96,63 P.792 instituted. Shuck v. Quackenbush, 75 Colo. a f as s _
(1911). 592,227 P. 1041,38 A.L.R.259(1924). '* + ,,o,
.ri 5+..'.fx+x �N Sir .
38.35.110. Lis pendens as notice, when sufficient. The filing of notice of ;:iii..--,` 4 �`,f4. �., sa
pendency of an action in compliance with law shall from the time of the ° ,, e • ..'w4:4,,,,,,3e
filing thereof be notice to all persons who may subsequently acquire any of yc P ► 4:S,
right, title, interest, or estate in and to the real property described in such 41,4. a , tie �' f°
notice from any grantor or from any source whatsoever. '+a 'n "t li +' i'
Source: L. 27, p. 590, § 9; CSA, C. 40, § 115; CRS 53, § 118-6-10; C.R.S. Ai: o
1963, § 118-6.10. ,yam q
,- el- ``t
Cross reference: For the filing of a notice of lis pendens.see Rule IOW.C.R.C.P. ' a v �± . fo . y
"
M: 'lam review. For article, "Curative Statutes Applied in Hammersley v. District Court, tixl�t,, -
of Colorado Respecting Titles to Real Estate", 199 Colo.442.610 P.2d 94(1980);In re Harms, ., : lt,t vR l, '
. see 26 Dicta 321(1949). 7 B.R.398(D.Colo. 1980).
Effect of filing lis pendens. See Tinglof v. « e' 'V
Askerlund.%Colo.27.39 P.2d 1039(1934). .5.4O'..1°3 u f �,
1 t,iG� 3 c'''.t �ii y ;{�i
38-35-111. Option to purchase - notice for one year only. (I) Recorded .. !co-L.-
instrumentsr
in writing of the nature of an option to purchase affecting title i' �` f, ` .f}s'`
to real property under the terms of which instruments possession is not deliv- '> a *+'=-
. ered to the purchaser shall not constitute notice to any person for a period f'' ;),,x,,.., ,
of more than one year after the time specified in such instrument for the
s7 , -.0kr
311017/N :I
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FAS C Z M S LE MEMORANDUM
Kt;cto
WELD COUNTY
915 10TH STREET
P. 0.. BOX758
GREELEY, COLORADO
80632
COLORADO
This message consists of 2—pages plus this cover sheet.
SENT s
yy am
Date: �lZIL� Time/a_:(xs—Z
PLEASE DELIVER THE FOLLOWING PAGE(S) TO: " Sna-mtMC✓d/c-
COMPANY: (//J
FAX NO: 79G - .2. 7? 7
FROM: Ler /ion' l sort ! l
SPECIAL INSTRUCTIONS: hie_ too re +Yc1l � �o/e / 2 6, for
taxes in )1 CCer (ca/ � I-� /J2 -A
,217), -7 rare ce? vd
1Cou,atj �C
Coin mh, ,S/OneYS e- Q eece /SSre/ ;rl 193 6a11eACci)
"Tile C/ C o a r d GY/f��a rc n yx�y Cad /-ito Sic r Fcc c %PI /q`f 3
qr Y e.SerVece- mincra 15 , �ZGt on /t ha re 1-Ater do ca. men de-t-
bwfi = (17r'esKme The Cou ti 61,1 wAai- -/Acy taxa y did)
COMPANY: Weld County U
Phone #: 303-356-4000
Fax No. : 303-352-0242
CONTACT: 4 _ Ext. /
JUN-07-'91 FRI 14:1" 'D: TEL N0: 1377G P01
BURNS, FICA & WILL, P.C.
J WILL ATTORNEYS AT LAW Or CODUUUU
PMILLI►S nem. ONC OTC,►CNTNOUSC NOON A.■URNS
CANDACE COLL Fla a:u OTC w►R.ewAV
OEO N ENGLEWOOD,COLORADO SOIII
EMILY RANH RENME
DANA L.niacin! TCLEMIONE ISOM 7110-ESES
NORMAN W.NIGLEY FACSIMILE 0031 7SS-7777
TELECOPIES TRANSMITTAL SHEET
RECEIVING TELEPHONE
NUMBER 1352-0242
DATE: Jame 7. 1991
'ram 3:10 am.
DELIVER TO: Lee Morrison -Weld County
FROM: Molly Sommerville
COMMENTS: 4 Pate Ownership Report
TOTAL NUMBER OF PAGES INCLUDING COVER SHEET:
TEE DWORMATION CONTAINED IN THIS FACSIMILE MESSAGE (Alm ANY DOCUMENTS
ACCOMPANYING IT)IS CONFIDENTIAL AND INTENDED ONLY FOR TEE USX OF TO8 INDIYENLH,OR
Minn NAMED Mat THIS TRAN>OAA'SION MAY ALSO BE PROTECTED BY THE IAWYSUCLIENF
rannza TES MEESE WORK PRODUCT PRINIA➢ox Olt EOM ONA[RHOR®DISCLOSURE,
DETTIESIMI N OE COPYING OF rms COMMUNICATION IS STRICTLY PROIfETTED. 111100 HAVE
MEWED TIES ISAN IEsSION IN EDROR,PLEASE NOTIFY THIS MICE IMMEDIATELY TOARRANGE
FOR ITS EEEURR
If you have any problems receiving this transmission, please call pa at
(303)796-2626.
9110)2, •
JUN 7 ' 91 14: 22 PRGE . 001
JUN-07-'91 FRI 14:1r D: TEL NO: 17776 P02 --------
OWNERSt-1IP IiEPOHT
PROSPECT: Wildhorse LEASE 344
COUNTY: Weld STATE: ,Colorado
CONTAINING 640.00 ACRES,MORE OR LESS.
DESCRIPTION
Township 9 North, Range 65 West, 6th P.M.
Section 33: All
SURFACE 01tNERSNIP:
As to 33: NW}
Virgil R. Stewart and Rose w. Stewart
22496 Weld' County Road 86
Ault, CO 80610
As to 33: Ei, SWI
Sophie Nordhausen, etal
Box 92
Waunita, NE 69045 .
•
(.--J NOTE: Al o0 and gas leases expire at midnight of the expiration date shown.
( _ —) NOTE: The following ware examined for this report:
Mortgages, Liens, L.—) Judgements, Easements.
L_J NOTE: The taxes with respect to the lands described herein are/are not current as of the date of this report.
Lr___) NOTE: Production status for the above captioned lands has been included in this report only if reflected in the
County records of the County and State cited above. State records pertaining to production have not
been examined.
(11--) NOTE: This report pertains to oil and gas minerals only.
1 CERTIFY THAT I HAVE:
L..JL_J PERSONALLY EXAMINED THE COUNTY RECORDS
L—J BEEN FURNISHED WITH ABSTRACTER'S RECORD CHECK �� 1.0
u ,
IN CONNECTION WITH THE C T10NED TRACT, AND INTERPRET THE NERSHIP TO BE AS FOLLOWS:
See Page 2
DATED: 3-1-91
By:
Lane M. Jungers, Landman
Noel
JUN 7 ' 91 14:23 PRGE . 002
31.1.0PA
JLN-07-'91 FRI 14:1 '0: TEL N0: U776 P03 -
• U V% 4 1L115111[' lit:JA 1
PROSPECT:
MINERAL OWNERSHIP INTEREST NET ACRES LEAWAIDLD&EXP. DATE
Township 9 North, Range 65 West
Section 33: All
Union Pacific Resources 100.00% 640.00 Appears OPEN
Company
P.O. Sox 1257
Englewood, CO 80150 ,
•
•
•
•
•
31.10C4
Pay° 2 of 2 Lane M. Jungers 3-1-91
JUN 7 ' 91 14:23 PRGE . 003
91..x.0"1
JUN 7 ' 91 14:25 PRGE . 004
9110?4,
JUN 7 ' 91 14: 26 PRGE . 005
JUN-07-'91 FRI 14:2 D: TEL NO: 14776 PO5 - -
• INDEX SHEET
I LEGAL DESCRIPTION
COUNTY: We 1f d 7 9 Ai-1C � �- tJ
STATE: CnlOf��a Sec, 3
LANDMAN: LwnG 140114.5
DATE:
Ins_ Book/Page Notes Ins. Book/Page Notes
Pa r 2o1/yQl to UP Pe
W o Z33A•0 h f C4�-�c1�It t�(e/�� Co.r a-o
' V
21_10'1
JUN-07-'91 FRI 14:1 D: TEL N0: 14776 PO4 -
...rv... ._._ .Assoc+ _...._ ..
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r.red r roved r Mrr
It pce� n't ''nine"UAW'
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A I' J DNION PACIFIC RAILROAD COMPANY, _
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i
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.91_10-14
** TX CONFIRMATION REPORT ** AS OF SEP 3 ' 91 13: 16 PAGE . 01
DATE TIME TO/FROM MODE MIN/SEC PGS STATUS
01 9i 3 13: 12 3033994791 G3--S 04"02 07 OK
1.10,1 �,
F ACS CSI MI I L E M E MO RANDLTM
• (�
WELD C O U N T Y rt MOIR 915 10TH STREET
P. O. BOX O
GREELEY, COLORADO 80632
1111111e.
COLORADO
This message consists of pages plus this cover sheet.
SENT:
am
Date: L ) /li Time — _ pm
PLEASE DELIVER THE FOLLOWING PAGE(S) TO: __
o (tivr./d / 7 a 9- 11V
COMPANY: 0
FAX NO: -796 - 7.727 FROM: I e� O io rre So i.,
SPECIAL INSTRUCTIONS:
COMPANY: Weld County
Phone it: 303-356-4000
Fax No. : 303-352-0242 "
CONTACT: Let Ext. "13 9 I
31.1.95M
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