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Home My WebLink About981544 RESOLUTION RE: EXTENSION OF TWO OIL AND GAS LEASES COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO, AND AUTHORIZE CHAIR TO SIGN - NW'/. S15 AND SE'/. S15, T5, R61 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, is the owner of vast acres of mineral lands located in Weld County, Colorado, and WHEREAS, Sovereign Energy, LLC, submitted a request to extend the lease of 320 net mineral acres, more or less, described to-wit: NWY of Section 15 and SE% of Section 15, Township 5 North, Range 61 West of the 6th P.M., Weld County, Colorado WHEREAS, Weld County desires to approve the request submitted by Sovereign Energy, LLC, to extend the leases on the above described mineral acreage, for a period of 90 days from August 15, 1998, to and until November 13, 1998. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the request of Sovereign Energy, LLC, to extend oil and gas lease be, and hereby is, granted for a period of 90 days from August 15, 1998. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said extension. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 24th day of August, A.D., 1998, nunc pro tunc August 15, 1998. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ' n ATTEST: . , � ,�/ '4<<1�//�.,� /'la��ip�o Constance L. ar ert, Chair Weld County Clerk .e rs 11S1 1,414)-10/0 ( ' ` AS I W. H. ebs er, ro-Tem BY: '.4iwi�C:— Deputy Clerk to NtrlidN � — t Atli.— ►r ' eorg E. Baxter OV AS M: Dale . Hall unty Attorne t EXCUSED Barbara J. Kirkmeyer 981544 CG : CAS LEO2Iq SDYCce;J 2 6 TO: Board of County Commissioners FROM: Bruce T. Barker, Weld County Attorney imp DATE: August 14, 1998 C� RE: Request for Extension of Oil and Gas Lease From COLORADO Sovereign Energy LLC, Lease No. 950266/LE0081 Attached is a letter from Sovereign Energy LLC requesting the extension of an oil and gas lease for property located in the Southeast quarter and Northwest quarter of Section 15, Township 5 North, Range 61 West of the 6th P.M., Weld County, Colorado. Also attached is a copy of a map which accompanied the letter from Sovereign Energy. As the letter explains, Sovereign Energy has already received one six month extension for this lease. The expiration of the lease is August 15, 1998. Attached is a copy of a Board of County Commissioners resolution extending the lease to August 15th, and a copy of the Mineral Leasing Policy Concerning Extensions from the Weld County Administrative Manual. The Mineral Leasing Policy Concerning Extensions states the following: "No lease term will be extended for more than six months from the original date as contained in the mineral lease." Sovereign Energy is asking for an extension of 90 days (August 15, 1998 to November 13, 1998). It seems counterproductive to deny the extension. Sovereign Energy has been very conscientious in communicating with me and the Clerk to the Board's Office regarding this lease. In most of our leases, we do not hear back from the lessee and never really know if the property is being produced or has been abandoned. I hate to penalize Sovereign Energy just because that company has been conscientious enough to let us know that it has experienced some set backs in anticipated production. I believe the Board of County Commissioners should alter the Mineral Leasing Policy Concerning Extensions such that any extension may be granted upon a showing that good faith efforts to produce have been made. I also believe that even though the Policy says that the original expiration date may not be extended for more than six months, the Board retains it's jurisdictional authority to waive the extension policy if the circumstances justify. It is my understanding after speaking with Thomas Metzger, Manager of Sovereign Energy, that there are no other companies which are interested in this lease at the present time. I believe this representation is correct. q?l5cj Memo, Sovereign Energy August 14, 1998 Page 2 I recommend that the Board approve the extension for 90 days from August 15, 1998, but let Sovereign Energy know that no further extensions will be granted. To do so, we will need to make certain that the Board extends the Lease by Resolution which I will place on the agenda on Wednesday, August 19, 1998, nun pro tunc to August 15, 1998. (_ 'Bruce T. Barker' Weld County Attorney Revise Mineral Leasing Grant Deny Work Session Policy Concerning Extension Extension Session Extensions as Recommended George Baxter V Dale Hall Connie Harbert _ Barb Kirkmeyer /' Bill Webster BTB/db:Memo/BOCC/Sovereign Attachments pc: Don Warden gg-i svy SOVEREIGN ENERGY LLC. July 31, 1998 Bruce Barker Weld County Attorney P.O. Box 1948 915 10th Street Greeley, CO 80632 RE: Request for Oil and Gas Lease Extension Township 5 North,Range 61 West Section 15: NW/4 (950266/LE0081) Section 15: SE/4 (950265/LE0081) Weld County, Colorado Dear Mr. Barker: Per our conversation dated July 30, 1998, Sovereign Energy LLC. ("Sovereign") has drilled a well (Weld County #22-15) in the SE/4NW/4 Section 15 on Weld County Lease #950266/LE0081. This well was drilled to a total depth of 6850 feet and was temporarily abandoned on July 8, 1998. Both of the above referenced leases have extension expiration dates of August 15, 1998. Sovereign wishes to continue its efforts to establish oil and/or gas production on these leases and therefore respectfully requests an additional period of time, approximately 90 days to complete its current operations due to the following circumstances: 1. Sovereign drilled its Weld County#22-15 to test the D-Sandstone at a depth of 6850'. The D-Sandstone was not productive but the uphole Niobrara zone was worthy of a completion attempt subject to associated costs. Sovereign owns the Galloway- Packard#41-15, also in Section 15 (see attached map) and determined that a completion attempt for the Niobrara on this existing well was more cost effective due to the risk of achieving Niobrara production at the higher expenses associating with using new pipe and equipment on the Weld Co. #22-15. Therefore the Weld Co. #22- 15 was temporarily abandoned pending the results of re-completing the Niobrara in the Galloway-Packard#41-15 first. Sovereign is currently waiting on a service rig to process its completion attempt on the Galloway-Packard#41-15. This will occur during August, 1998. 2. If successful results are achieved on the Galloway-Packard#41-15, Sovereign will then move back on the Weld Co. #22-15, run and cement production pipe to attempt a completion in the Niobrara. If production is not established in the Weld Co. 621 17T0 STREET,Stint 1145,DENNVER,COLORADO 80293.303/297-0347•FAX 297-9075 ! . /OLI• Request for Oil and Gas Lease Extension Bruce Barker July 31, 1998 Page 2 #22-15, Sovereign shall then plug and abandon the well as required by the Colorado Oil and Gas Conservation Commission and reclaim the surface location to its original condition. 3. If successful results should occur on the Weld Co. #22-15, Sovereign would then want to drill a new well in the NW/4 SE/4 Sec. 15, T5N-R61 W on Weld Co. Lease #950265/LE0081. Please note that Sovereign is diligently processing the development of these Weld County Oil and Gas leases for the mutual benefit of both parties and respectfully requests that Weld Co. grant us some additional time to determine the economic value of these mineral interests. In addition, Sovereign feels it must await your decision regarding an extension on both of these leases before proceeding with our larger plans as set forth above. Please review the foregoing and if acceptable, please so indicate by executing and returning (by fax or mail) to the undersigned, one copy hereof. Should you have any questions, comments or need further information, please don't hesitate to advise. Sincerely, SOVEREIGN ENERGY LLC. Thomas S. Metzger N Manager AGREED to and ACCEPTED this 24th day of August, 1998. BOARD OF WELD COUNTY COMMISSIONERS BY: Constance L. Harbert (08/24/98) TITLE: Chair R� istk RESOLUTION RE: AUTHORIZE EXTENSION OF TWO OIL AND GAS LEASES COVERING CERTAIN PROPERTY OWNED BY WELD COUNTY, COLORADO - NW'/e S15 AND SE!. S16, T5, R61 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, is the owner of vast acres of mineral lands located in Weld County, Colorado, and WHEREAS, Sovereign Energy, LLC, submitted a request to extend the lease of 320 net mineral acres, more or less, described to-wit: NW1% of Section 15 and SE% of Section 15, Township 5 North, Range 61 West of the 6th P.M., Weld County, Colorado WHEREAS, Weld County desires to approve the request submitted by Sovereign Energy, LLC to extend the leases on the above described mineral acreage for $10 per net mineral acre, for a total sum of$3,200, together with a rental fee of ONE DOLLAR ($1.00) per net mineral acre, which is to run for a period of six (6) months, commencing, February 15, 1998, and ending August 15, 1998. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the request of Sovereign Energy, LLC to extend oil and gas lease be, and hereby is, granted for a period of six (6) months. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 1st day of December, A.D., 1997. BOARD OF COUNTY COMMISSIONERS WELD OUNTY, COLO:RADO c I I , rCr it 44* eorg . Baxter, Chair - „ 40'0'ry s-s e Board ApH��ir 10.14 ` onstance L. Harbert, Pro-Tem 47WIT.0 the Board p Dale K. Hall APP D AS T ORM: 6".410,Li1bara J. Kirkmeyer �j ,q ounty Att neY / , %h14,r�I f/ ,l /,�,r ! 2 /? /� W. H. Websfer 2584189 B-1637 2-1740 12/12/1997 02:58P PG 1 OF 1 REC DOC Weld County CO JA Suki Tsukamoto Clerk & Recorder 0.00 97 LC �avereln 081 7°- T0: Board of County Commissioners I FROM: Bruce T. Barker, Weld County Attorne� > nir 7 0• ! i� ni DATE: November 26, 1997 CLERK Niue. Tei H E RE: Request for Extension of Oil and Gas Leases from COLORADO Sovereign Energy, LLC A request for an extension of two oil and gas leases has been submitted by Sovereign Energy, LLC. Each lease comprises 160 acres. (Lease #950266/LE0081 for the Northwest Quarter of Section 15-5-61, and Lease #950265/LE0081 for the Southeast Quarter of Section 15-5-61.) Sovereign is asking to extend each of the leases for a period of six months. Attached is a copy of the Board's mineral leasing policy which states that one six month extension may be granted for each lease. Sovereign has submitted a check in the sum of$1,600 to cover the bonus for the extensions for both leases. Sovereign figures the bonus as follows: the original bonus was $15 per acre. One- third would be $5, so the minimum bonus of$10 per acre applies. The total bonus for 320 acres is $3,200. Sovereign says the bonuses are usually for one year. Given that Weld County extends only for 6 months, the company has cut that amount in half, or $1,600. Tom Metzger of Sovereign has expressed to me that his company will pay $3,200 if the Board desires. I recommend that the Board extend both leases by resolution, each for a period of six months, but pay the $3,200. .Bruce T. Bark Weld County Attorney BTB/db:MemoB OCC/Sovereign 972474 � ' �O 52/ ...? GENERAL ADMINISTRATION Mineral Leasing Policy Concerning Extensions Latest Revision Date: May 6, 1996 On August 29, 1985, the Board of County Commissioners adopted the following policy for extending the terms of all mineral leases. The board will extend the terms of all mineral leases in which it is the Lessor according to the following conditions: 1. No lease term will be extended for more than six (6) months from the original expiration date as contained in the mineral lease. 2. That the Lessee shall pay to the Lessor the sum of one-third of the original bonus, with a minimum bonus of Ten Dollars ($10.00) per acre. 3. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per acre leased as delayed rental for the term of the extension. 4. That the royalty will remain the same as in the original lease. 37 24 Unit Serial No: 492411 Version: 01.06 Network Address: 00:40:af:3c:lb:d8 Network Topology: Ethernet Connector: 10 Base T Network Speed: 10 Mega Bits Novell Network Information enabled Novell Print Server Name: AD-3RD Password Defined: No Directory Services Tree: weld Directory Services Context: cent.weld Bindery Emulation printing disabled Peer-to-Peer Information enabled Frame Type: Novell 802 .3 Network ID: -863687935 AppleTalk Network Information disabled TCPIP Network Information enabled Frame Type: Ethernet II Protocol Address: 204 .133 .43 .207 Subnet Mask: 255.255.255.0 Default Gateway: 204 .133 .43 .226 Port Number: 1 Port Type: Parallel Novell Connection Information Printer Name: AD-3RD_PO File Server: CS39 No Queue attached No Notify Defined File Server: ADO1 Queue: AD-KONICA Priority: 1 Attached: Yes No Notify Defined Peer-to-Peer Connection Information Printer Name: KN2_492411-0 Appletalk Inactive TCP Connection Information Port Number : 10001 9 tiSW R6IW 4- / —_ - _A. ¢ ¢ + A 20/450/ fT8 A,lobo OR _- f\j�(� A. nbm• 9 10 II 12 Greasewood Flats Y " �-- (Dire 19831 A 27/580/ 12 MBO B 3/130/ 2 637 MMCFG C. A,above 1 A 20/957/ 9 MBW L_( 8. 4/771/6 1 C A. nbove I ®F4J Galloway•Pickard 12/22lLrN41 t5i'. /1 //0 T Weid C1g; ,lam-T Ott 0 C.As aloe• + I T #22-15 '' f I Ib � . IS , , 5 •• In 13 5 � ` -� N ` ®' ,J (� '.eu • µ Ci.C6A-rC J �� *�A.24B/201 115 -A. F'yr3A.396/495 I � B 242/1150/02 YY ��TT-��B 116/72J/9 A "C. S.1 A 740/411/ C 120/744/9 L_�B 10P/4U0/.2 l ' C 11;11/4U0/,2 412/398 I `v0 A.52 Sd5/20 -•C 52/549/29 114 2122 . A /P200/23 c o I + n �` u -- 8. 13/688/16 + O• c NE. RiversideII C Abd'924. U I e Disc 1980 A. 60/227/ ' e 0 535 MBO 8 4/66/I 3' 3572 MMCFG C Abd'93 124 MBW - (A.127//4- -— "IA.50//®A.160/ / A.97/553 A.JIB// ry B. 2/39/02 A.175// fp C. Abd'90 WA.310// ° 4:1- A.90// ® Y 4 29 27 a - 26 I Dist 5531 25 A 135// ers • o p i5 460 MBO 1539 MMCFG + Y RIVERSIDE I A COMPR SSOR I_- Y ITS Scale 1"=2000' PRODUCTION DATA MAP T--- LEGEND Pr odocing Iloretons: Abbreviations \-/ D. Sandslone I P = Initial Potential / --- (.) Sandstone Cum = Camulalive Production SOVEREIGN ENERGY 1.LC. FUR = Estimated Illiinicim Recovery Denver,Colorado 1303)297-0347 (15-) L ocolion, O Potential Location ARD = Abandoned 1'1oduction: IA. = TernpornrilyAbandoned GREASEWOOD FLATS A I P DDFO,MCFGro/Bwpo 5.1. Shot In PROSPECT El, I (10 R Com MRO/MMCF/MPW(A,of No✓97 I WELD COUNTY, COLORADO C FUR MRFI/MMCF/MOW PRODUCTION DATA MAP Leasehold _ , \ Fipar•-5 ' / 95 .. . .._. ,.._-._-. . . .., Hello