HomeMy WebLinkAbout961690.tiff RESOLUTION
RE: APPROVE REQUEST FOR CONSENT TO EXCEPTION LOCATION WELL FROM
PATINA OIL AND GAS CORPORATION AND AUTHORIZE CHAIR TO SIGN
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, Weld County, Colorado, has received a request for Consent to Exception
Location for Meyer J 26-16 Well from Patina Oil and Gas Corporation, 1625 Broadway, Suite
2000, Denver, Colorado 80202, and
WHEREAS, said Consent to Exception Location covers land more particularly described
as follows:
Township 5 North, Range 66 West, 6th P.M.
Section 26: SESE
Weld County, Colorado
WHEREAS, Weld County is entitled to a one-eighth royalty interest on production, and
WHEREAS, in order to receive said royalty interest, Weld County must execute said
Consent to Exception Location, a copy of which is attached hereto and incorporated herein by
reference, and
WHEREAS, said Consent to Exception Location has been reviewed by a member of the
Weld County Attorney's staff and found to be in order, and
WHEREAS, the Board deems it advisable to approve said Consent to Exception
Location on the parcel of land described herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Consent to Exception Location with Patina Oil and Gas
Corporation, on the hereinabove described parcel of land be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said Consent to Exception Location.
961690
CO : Pat[74t LE0054
CONSENT TO EXCEPTION LOCATION - PATINA OIL AND GAS CORPORATION
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 23rd day of September, A.D., 1996.
BOARD OF COUNTY COMMISSIONERS
� WELD COUNTY, COLORADJ0
I� a a ,4 k4Cc %,/ /�. "/ z4
vv
two P Barbar J. Kirkmeyerirman
:a� 1t SiI ty Clerk to the Board 1___,_ft.Thiace Siff(-4 - �T�� t a r e axter, Pro-T m
4eputy Clerk 0 the Board \I
Dale K. Hall
AP VED AS TO FO Consta
acmt e Aceaffe '
Consta ce L. Harbert
.,
C u ttorn y
W. H. We ster
961690
LE0054
PATINA
August 26, 1996 on,&GAS CORPORATION
1625 Broadway Suite 2000
Denver,Colorado 80202
Weld County Colorado Ida
Board of County Commissioners CERTIFIED MAIL (303) 5924687 Fax )
P. O. Box 758 --z
Greeley, CO 80632
RE: Request for Consent to Exception Location -,
Well: Meyer J 26-16
Township 5 North,Range 66 West
Section 26: SESE "
Weld County, CO
Dear Sirs/Madam:
Patina Oil & Gas Corporation ("Patina"), acting as operator for SOCO Wattenberg Corporation is
planning to drill the captioned well to the Codell/Niobrara formations. The proposed location is
1037 feet from the south line and 719 feet from the east line of Section 26. This is outside of the
legal Codell/Niobrara drilling window a distance of 205 feet to the north, therefore Patina hereby
requests your consent to this location variance.
In order to drill this well in the Codell/Niobrara formation, the Colorado Oil & Gas Conservation
Commission (the "Commission") regulations require that the operator of the proposed well
obtain consents from the owners. If you object to the exception location, you must file a written
objection with the Commission. Their address is: the Chancery Building, 1120 Lincoln Street,
Suite 801, Denver, CO 80203. A copy of the objection letter should also be sent to Patina.
Please evidence your consent to the exception location in the space provided below and return
one fully signed copy of this letter to Patina via fax and mail at your earliest convenience. Thank
you for your prompt attention to this matter.
S' ely
a
arie Mc
Properties Administrator
ACCEPTED THIS 23RD '14 . • 1$Q6.
v �
By. .t . - � i_'.®..i�'t 1�/ ► '911^_ 1iL��I, Irl 1_�_� �.
' Barbara J. rkme 1'� � � 1sf��.0 Clerk to Board
Chair, Weld County pena
Board of Commission %®07
e C rk to Board
961690
4100 East Mississippi Ave. Suite 1200 Denver,Colorado 80222 (303)757-1110 (303) 757-1197 Fax
7_,EDDSE
4 WELD COUNTY ATTORNEY'S OFFICE
PHONE: (970) 356-4000, EXT. 4391
f FAX: (970) 352-0242
915 TENTH STREET
WI '
GREELEY, COLORADO 80632
CSeptember 10, 1996
COLORADO
Marie McCord
Properties Administrator
Petina Oil and Gas Corporation
4100 E. Mississippi Avenue, Suite 1200
Denver, CO 80222
RE: Request for Consent to Exception Location;
Meyer J 26-16 Well, Located in the SESE of
Section 26, Township 5 North, Range 66
West of the 6th P.M., Weld County,
Colorado
Dear Ms. McCord:
This letter is in response to your letter of August 26, 1996, requesting consent by the Board of
County Commissioners of Weld County, Colorado to an exception location for the Meyer J 26-
16 Well, located in the SESE of Section 26, Township 5 North, Range 66 West of the 6th P.M.,
Weld County, Colorado. This letter is also a follow up to our telephone conversation of
Thursday, September 5, 1996.
Although it is my understanding that Weld County's interest in the minerals in this tract consist
of only 1.64 acres, the question of proximity of an oil and gas well to a rural subdivision is of
concern to the Board of County Commissioners. In order to advise the Board as to whether it
should consent to the exception location, I need to know some additional information. First, is
there any surface agreement between Petina and the surface owner? Second, why does Petina
wish to locate the well outside of the drilling window? I understand that these questions may
seem somewhat irrelevant; however, this information will assist the Board in determining
whether it should provide the consent you request.
If you should have any questions regarding this letter or if you wish to speak to me by telephone,
I may be reached at (970) 356-4000, extension 4390.
Sincer
7B T. Bark [Bar [ C
eld County A orney
BTB/db:Let/McCord
961690
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PATINA
OIL at GAS COttFORATION
1625 Broadway Suite 2000
September 19, 1996 t303)Den r.Comrade 80202
00
(303)692-4667 Pan
Bruce Barker
Weld County Attorney
Weld County Attorney's Office VIA FAX
915 10th Street 970-352-0242
Greeley, CO 80632
RE:Request for Consent to Exception Location
Meyer J 26-16 Well
Township 5 North,Range 66 West, Section 26: SESE
Dear Mr. Barker:
This letter is in response to your letter dated September 10, 1996 and also serves as follow up to our
telephone conversation of today.
Per your request, attached is a copy of a surface agreement between Patina Oil& Gas
Corporation and the current surface owners,Merel T. Meyer and Viola Meyer. The reason for
the proposed well location being outside the legal Codell/Niobrara window because there are
commercial storage units located within the legal drilling window.
Should you have any questions or need additional information please call me.
Sine rely,
P A OIL Sc. AS ' RPORATION
j (ti
►"
Marie McCord
Properties Administrator
Attach.
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SURFACE USE AGREEMENT
THIS AGREEMENT is made and entered into this �,•' day of September, 1996, by and
between Merel T. & Viola.Meyer, 1419 15th Street, Greeley, Colorado 80631 ("Surface
Owner"), and Patina Oil & Gas Corporation, a Delaware corporation, 1625 Broadway, Suite
2000, Denver, Colorado 80202 ("Patina").
Exhibit "A" attached hereto describes one potential drillsite within the SE1/4SE1/4 of
Section 26, Township 5 North, Range 66 West, 6th P.M., Weld County, Colorado (the
"Property'). Patina and Surface Owner have agreed that Patina will pay Surface Owner$2500.00
prior to commencement of drilling operations on the drillsite, said payment to be made not less
than five (5)days prior to the commencement of drilling operations. No payment will be made
for the drillsite described if an oil and gas well is not drilled thereon. In consideration of such
payment and in consideration of the covenants and obligations set forth herein, Patina and Surface
Owner agree as follows:
1. Said payment constitutes the full and entire consideration to be paid by Patina for
the use of the surface and all damages (except as provided for in paragraph 2 hereof) to the land
associated with the drilling, testing,completion,recompletion,reworking, re-entry, operation and
maintenance of the drillsite located on the Property. The payment is for all damages to the
Property, including, but not limited to, damages to growing crops, sod, damage to croplands,
removal, transportation and care of livestock, construction of access roads, preparation and use
of the drillsite area, preparation and use of reserve pits, and construction, installation, and
maintenance of production equipment and facilities such as Bowlines, gas pipelines, separators,
tank batteries and other equipment or facilities necessary or convenient for the production,
transportation and sale of oil, gas and other materials produced by or used for production of oil
and/or gas from the Property. With respect to the construction, installation and maintenance of
production equipment and facilities such as Bowlines, gas pipelines, separators, tank batteries and
other equipment or facilities necessary or convenient for the production, transportation and sale
of oil, gas and other materials produced by or used for the production of the above well, Patina
may exercise the rights granted by this Agreement at any time and from time to time without
further or additional consideration being payable to Surface Owner.
2, It; by reason of Patina's operations, there is damage to personal property located
on the Property or if there is damage to the Property caused by negligence of Patina or an
unreasonable use of the Property by Patina that is not associated with reasonable and normal
drilling, testing, completion, recompletion, reworking, re-entry, pumping, production and
maintenance operations, such as damage to structures, fences, culverts and cement ditches, such
damage shall be repaired or replaced by Patina or Patina shall promptly pay Surface Owner for
such damage.
3. With respect only to the subject matter of paragraph 1 above, Surface Owner agrees
to indemnify and hold Patina harmless from all claims, demands, liability and actions against
Patina by any other surface owner, surface tenant or occupant of the Property arising out of
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damage by Patina to the Property or growing crops thereon caused by the operations contemplated
by paragraph 1 above asserted by any such other surface owner, surface tenant or occupant.
Surface Owner may allocate the payments made hereunder with any surface owner, surface tenant
or occupant as they shall mutually determine between trP.,iPtves and Patina shall have no liability
therefor.
4. As between Surface Owner and Patina, Surface Owner shall have no liability for
the release or discharge by Patina, its contractors or agents, of oil, gas or any other substance on
or under the Property, except as any such release or discharge is caused in whole or in part by
Surface Owner, Surface Owner's tenant, licensees, invitees, or agents, and Patina will indemnify
and hold Surface Owner harmless from and against all costs and expenses (including reasonable
attorneys' fees) for any such release or discharge by Patina.
5. This Agreement constitutes written consent of Surface Owner for Patina to proceed
with the drilling,testing,completion, recompletion,re-working,re-entry,pumping, operation and
maintenance of the above-described well on the Property. This Agreement also constitutes
Surface Owner's written acknowledgment that Patina has complied with Rules 305b. and 305c.
of the Colorado Oil and Gas Conservation Commission, Surface Owner's written waiver of the
notice requirements set forth in Rule 305 and Surface Owner's written acknowledgment that Patina
has complied with the consultation requirements set forth in Rule 306.
6. Except as provided in paragraph 2 hereof, for cases of unreasonable surface use
and/or negligence by Patina, Surface Owner, for itself, and its successors and assigns, does
hereby, release, relinquish and discharge Patina, its successors and assigns from all claims,
demands, damages and causes of action, past, present and future, that Surface Owner may have
by reason of the occupancy of the Property and for the drilling of the wells and all other damage
or injury to the Property caused by the drilling, completion, recompletion, reworking, re-entry,
pumping, operation and maintenance of the wells and Surface Owner accepts the above payment
as full compensation therefor.
7. This Agreement is subject to Exhibit "A" attached hereto and by this reference
made a part of this Agreement.
8. This Agreement is subject to Exhibit "B" attached hereto and by this reference
made a part of this Agreement.
Surface Owner agrees to keep confidential this Agreement and all negotiat
leading up to or re ' cement. Surface Owner shall no tstribute this
tal
Agreement or disclose the substance bereo negotiations to others outside At`117--`A
of Patina unless required to d . ovided,however,Surface ner ' ' a copy 'ff`
of the Agree y potential successor or assign of Surface Owner prior to the closing o
a ► or any portion of the Property.
10. This Agreement shall be binding upon and Sure to the benefit of the successors and
assigns of the parties hereto.
961690
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' EXHIBIT"S"
Attached to and by reference made a part of that certain Surface Use Agreement dated September �'A . 1996.
by and between Patina Oil&Gas Corporation, as"Patina', and Mere!T.&Viola Meyer. as 'Surface Owner'
covering the following lands:
Township 5 North,Range 66 West,6th P.M.
Section 26: SESE
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Agreed to and accepted the day and year first written above.
PATINA OIL&GAS CORPORATION
A Delaware corporation
By:
Curt Moor I ands tan
SURFACE OWNER ''/ dod-4
By: " *�" !.C��G�/
Mere Viola Moyer /
SSNor Tax IDA : 3,13 *XJ?Y/
961690
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EXEIIBIT "A"
Attached to and by reference made a part of that certain SurfaceSurface Use tina", and Meres &ment dated
SeptemberViol
1996, by and between Patina 011 &Gas Corporation,
Meyer, as "Surface Owner" covering the following lands:
Township 5 North. Range 66 West 6th P M
Section 26: SESE
1. The wellsite shall be located in the SESE according to the governing regulations.
2. Consideration herein shall be for one (1) well.
3. The topsoil shall be removed from the area over the pits, stockpiled and held in
reserve until the contour of the site is re-established. The welisite shall be ripped and returned
to original slope and contour, as is reasonably practicable, following completion operations.
Following completion, recompletion, reworking and/or re-entry operations, Patina shall return
the topsoil to its relative position over excavated areas and shall place any culverts necessary to
practically and adequately drain the wellsites and tank battery site.
4. Rule 1003.4.(1)provides that Patina may dispose of de minims amount of drilling
fluids in the reserve pit during reclamation operations. It is agreed that the amount of drilling
fluid that may remain in the reserve pit shall be that portion of the fluids that cannot be suctioned
out of the pit by a pump. It is further understood that the drilling muds not removed shall be
mixed with the sub soils during the backfilling operation and that the top soil / sub soil horizons
shall be re-established to their same relative position as found prior to excavation.
For non-cropland locations, Patina reserves the right to dispose of drilling fluids and
cuttings in the reserve pit, after the pit is sufficiently dry,by backflling the reserve pit with soils
removed from the pit area.
During the two (2) year period following reserve pit closure, if additional topsoil is
necessary to return the reserve pit to its original contour, Patina shall provide such topsoil to the
pit area. The quality of the topsoil king returned shall be subject to the approval of Surface
Owner which approval shall not be unreasonably withheld by Surface Owner. Patina and Surface
Owner recognize and agree that Patina is not guaranteeing that the reserve pit area will be restored
to its original contour and agricultural productivity in the absolute sense. Patina will, however,
use its best efforts to restore the same to its original contour to the extent practical.
5. Patina agrees to be responsible for any alterations needed to existing fences for the
purpose of drilling, testing, completing or production of the wells herein proposed.
6. Patina agrees to bury all flowlines to a depth of forty-eight (48) inches below the
surface of the ground.
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7. Patina agrees to pay Four Hundred Dollars($400)per acre proportionately reduced
for damages occurring as a result of future reworking, recompletion or re-entry operations.
8. Patina is authorized to occupy a maximum of three acres for the well to be drilled
on the Property. If Patina occupies more than three acres for the drillsite, it shall pay Surface
Owner at the rate of Four Hundred Dollars ($400)per additional acre, proportionately reduced.
9. In consideration of the payment provided herein, Surface Owner hereby accepts
responsibility for compliance with sentences#2 and#3 of Rule 1003.e.(1) and sentence #2 and
the remainder of Rule 1003.e.(2) of the Colorado Oil and Gas Conservation Commission.
10, Patina agrees to install a wellhead guard around the wellhead following completion
and reclamation operations. Said wellhead guard shall prevent livestock that may pasture in the
field from coming in contact with the wellhead.
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