HomeMy WebLinkAbout980906.tiff RESOLUTION
RE: APPROVE REQUEST TO WAIVE BID PROCEDURE CONCERNING OIL AND GAS
LEASE AND ACCEPT OFFER TO LEASE MINERAL ACRE - NORTH AMERICAN
RESOURCES COMPANY
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, North American Resources Company, 1700 Broadway, Suite 2000, Denver,
Colorado 80290, 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:
Section 23, Township 2 North, Range 68 West of
the 6th P.M., Weld County, Colorado
WHEREAS, North American Resources Company is offering to lease the above
described mineral acres, containing .988 mineral acres, more or less, and
WHEREAS, the Board finds that the lease offer from North American Resources
Company in the amount of TWO HUNDRED AND NO/100 DOLLARS ($200.00), is acceptable,
with the further terms and conditions being as stated in said Oil and Gas Lease, a copy being
attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the request of North American Resources Company, to waive the
bidding procedure on an Oil and Gas Lease concerning the above described mineral acres, be,
and hereby is, granted.
BE IT FURTHER RESOLVED by the Board that the offer of North American Resources
Company to lease mineral acres, as hereinabove stated, be, and hereby is, accepted.
980906
LE0193
NA R C
WAIVE BID PROCEDURE - NORTH AMERICAN RESOURCES COMPANY
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 1st day of June, A.D., 1998.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:
onstance L. Harbert, Chair
Weld County Clerk to the ' .�rr1 d auto_ 1Q l /fAI9 (l
H. IA/ ster, Pro-Tern
BY: • �$A `
Deputy Clerk to the Boat`
orge . Baxter
A D AS TO F M:
Dale K."Hall ounty Attorney
Barbara J. Kirkmeyer
980906
LE0193
WELD COUNTY OIL AND GAS LEASE
(Small Tract)
THIS AGREEMENT, made and entered into this i - day of June 19 98 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:
North American Resources Company, 1700 Broadway, Suite 2000, Denver, Colorado 80290
hereinafter called Lessee.
WITNESSETH, that Lessor, for and in consideration of the sum of$ 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 2 North Range 68 West.6th P.M.
Section 2223: A piece or parcel of land 20 feet aide and lying 50 feet right of the
center line of the sun c6-for A WP 7007-B and parallel to the West Section line for
centerline)and contained isithin the boundaries of the NW/4.Section 23.more
particularly described as follows:
Beginning at a point from which the Northwest Corner bears Westerly 50 feet
and North 0 degrees 13 minutes East 2l.9 feet.more or less:Thence South 0 degrees
13 minutes West 2153 0 feet,more or less,to a East and West Division fence;
Thence Easterly 20 feet,along the said disision fence;Thence North 0 degrees 13
mutates East 2153.0 feet,to the North boundary fence of the said NW/4 of Section
23; Thence Westerly along the said boundary fence,a distance of 20 feet to the point of beginning_
containing 0.988 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 fling for record
a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered.
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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.
S. 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 Lessors 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 Lessors 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 Lessors 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
AIM 11111111111 III ill EMIR MINIM'
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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 Lessors 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 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.
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9090
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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
WE t4 COUNTY, COLORADO
(((/fer7-72-5`rich®_., 7ZI ''i�.01—
ATTEST:
r f �' LG 4 �'L t / �a '1
Weld County Cie to h \ ,• �I r � � �
11// Wes . y
(06101/98)
--�.
LES EE: 7----- -1
'1
MONTANA-
STATE OF Mtge2IIIW ) North American Resources Company
SILVERBOW ) ss. James J. Benner, Vice-President and
COUNTY OF 1 ) General Manager
The foregoing instrument was acknowledged before me this 7 day of May 1998,
by James J. Benner, Vice-President and General Manager of North American
Company.
hh tYir apd official seal. My commission expires: 5-°-4 - `16
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B' ; ,L : _Public
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1 /y NORTH AMERICAN RESOURCES COMPANY'
) ,I �� I DENVER DISTRICT OFFICE
\•�/ 1700 BROADWAY, SUITE 2000, DENVER, COLORADO 80290
• TELEPHONE (303) 861-9183 m`'
1
-I
May 8, 1998
FTC r—
Weld County Board of County Commissioners m
P. O. Box 758
Greeley, CO 80632
Attention: Esther—Clerk to the Board
Re: Oil and Gas Lease(Small Tract)
T2N-R68W—Weld County, CO
Sec. 23: .988-acre parcel in NW/4
Dear Esther:
Enclosed please find two(2)originally executed Weld County Oil and Gas Lease(Small
Tract) forms that have been fully executed by North American Resources Company. North
American Resources Company's check#1498 in the amount of$200.00 is enclosed as
consideration for same.
When executed by the Board, please return one(1)original to my attention at the
letterhead address for recording and our internal processing. Your help in this matter is greatly
appreciated.
If you have any questions or comments, please call at(303) 839-3010.
Very truly yours,
NORTH AMERICAN RESOURCES COMPANY
'r
Robert J. Bram
Senior Land Technician
/rjb
enclosures
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