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Home My WebLink About970574.tiff( RESOLUTION RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS LEASE AND ACCEPT OFFER TO LEASE 1.80 MINERAL ACRES - LCM, LTD., LLC 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, LCM, Ltd , LLC, 10256 Mica Way, Parker, Colorado 80134, has requested that the bidding procedure be waived according to the policy as set forth in the Weld County Administrative Manual for parcels less than five acres, on the following described mineral acres A 30 foot wide strip along the south side of the NE' of Section 13, Township 5 North, Range 64 West of the 6th P M , Weld County, Colorado WHEREAS, LCM, Ltd , LLC, is offering to lease the above described mineral acres, containing 1 80 mineral acres, more or less, and WHEREAS, the Board finds that the lease offer from LCM, Ltd , LLC, 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 LCM, Ltd , LLC, 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 LCM, Ltd , LLC, to lease mineral acres, as hereinabove stated, be, and hereby is, accepted d..C : LCO 1 970574 LE0141 - a WAIVE BID PROCEDURE - LCM, LTD., LLC PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 31st day of March, AD., 1997. Deputy Clerk to the Board unty Attctney BOARD OF COUNTY COMMISSIONERS WELD,COUNTY, CQLORADO George E. Baxter, Chair i tance L. Harberf, Dale K. Hall 4 i( _el/C/4 A Barbara J. Kirkmeyer e ster 970574 LE0141 - a WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this eNst day of /11AJcC}-1 )9 97 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, do Weld County Centennial Center, 915 10th Street, Greeley, CO 80631, hereinafter called Lessor, and: r1M, Ltd., uc, P. O. Box 596, Denver, Colorado 80201-0596 hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of $ 718 on , 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 5 North, Range 64 West, 6th P.M. Section jam: A 30 foot wide strip along the South side of the NE/4 and containing1.80 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. (RB1 2542915 B-1601 P-17 04/15/1997 10:00A PG 1 OF 4 REC DOC liLGA5 Weld County CO JA Suki Tsukamoto Clerk & Recorder 0.00 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 Lessee, 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 (Ravi 2542915 B-1601 P-17 04/15/1997 10:00A PG 2 OF 4 'LGAS 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. 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'terfns 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. 2542915 B-1601 P-17 04/15/1997 10:OOA PG 3 OF 4 :OOILGAS 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 WELDFOUNTY,COLOQADO itd,2-t &IV 102 al _ N STATE OF COLORADO ss. COUNTY OF WELD The foregoing instrument was acknowledged before me this day of 199_, by Witness my hand and official seal. My commission expires: STATE. OF COLORADO )ss. COUNTY OF DO[GlAS ) Notary Public On this 20th day of March,_ 1997, before me personally appeared Joan K. McCormick, Manager of 104, Ltd., I.11', known to me to• be the person described in and who executed the foregoing instrument, and who acknowledged to me that,sbe executed the same. .. .n,a ..,..,,k. and official seal. AR t ate• �0 Y''f ?)*_,An„?, moo 64ised /93) 3) fT• ....... • t ` Or Notary Public'.Sharon R. McDonald Residing At: Littleton, Colorado A K•ICYCI I CM/VIII nAe 2542915 B-1601 P-17 04/15/1997 10:00A PG 4 OF 4 So <� N 0ocoto p0 m u) : U W as : F- ~ m o z xi DI -O Ox J CC sv C. WV DA1 E: 4// 97 No.1241 RECEIVED FROM Ze_Ltl l L� ADDRESS FORT : 7_ i' ,°a% z 2 AMT. OF ACCOUNT AMT. PAID BALANCE DUE /kI.) _D.-B/VEJLe-e9/zu CASH MONEY ORDER Apr -01-97 04:34P P_02 Costilla want INC. B1M{ea,002t • r. D. 4, 10161 • MIDLAND. TA n702 April 1, 1997 Weld County 915 10" Street,,Rm 242 Greeley, CO 80631 Gentlemen: Castilla Energy. Inc, successor in interest to Costilla Petroleum Corporation was the owner of that certain Weld County Olt and Gas Lease dated December 7, 1987, between Weld County, as Lessor, and Transcontinent Oil Company, as Lessee, covering a 30 foot wide trip along the south side of the NE/4 of Section 13, Township 5 North, Range 64 West. The lease was held by the Lohr 13-1 Well, which ceased to produce due to mechanical problems, Costilla acknowledges that the lease expired of its own terms because of a lack of production and does not expect return of the $1.80 delay rentals, paid in error and received by Weld County on November 11, 1996_ Costilla hopes to re-establish production and appreciates your patience and cooperation in this matter. 2/2'd Sincerely DENNIS M. DILDAY, CPL District Landman 311 "alb `W07 Wd6E:SO 2.6, TO eldd 1 LCM, Ltd., LLC P. O. Box 50124 Billings, MT 59105-0124 (406) 245-9031 March 20, 1997 Board of County Commissioners County of Weld Weld County Centennial Center 915 10th Street Greeley, Colorado 80631 Gentlemen: P. O. Box 596 Denver, CO 80201-0596 (303) 623-3122 Re: Oil and Gas Lease (Small Tract) Township 5 North, Range 64 West Section 13 Weld County, Colorado Wattenberg Prospect P. O. Box 1531 Midland, TX 79702-1531 (915) 570-1451 Pursuant to your Mineral Leasing Policy, enclosed herewith, in triplicate, is Oil and Gas Lease covering 1.80 gross/net acres. Also enclosed is our check in the amount of $218.00, being $200.00 minimum bonus and $10.00 per acre for 1.80 acres. Upon approval by the Board, please return two fully executed copies to us at the address shown on the lease. It is our understanding that you retain one originally executed copy for your files. If there are any further requirements, please contact us at 1-800-536-8703 and at the voice prompt enter 9046. Thank you for your prompt attention to this request. J. M a am Con g Landman Ends. OPERATIONS 10256 Mica Way, Parker, Colorado 80134 (303) 840-1685 FAX (303) 840-1689 970574 Hello