HomeMy WebLinkAbout20211136.tiffRESOLUTION
RE: APPROVE AGREEMENT FOR REMOVAL OF TANK BATTERY AND ASSOCIATED
FLOWLINES FOR BRIDGE 54/13A REPLACEMENT PROJECT AND AUTHORIZE
CHAIR TO SIGN - KERR-MCGEE OIL AND GAS ONSHORE, LP
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, the Board has been presented with an Agreement for the Removal of a Tank
Battery and the Associated Flowlines for the Bridge 54/13A Replacement Project between the
County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld
County, on behalf of the Department of Public Works, and Kerr-McGee Oil and Gas Onshore, LP,
commencing upon full execution of signatures, and ending December 31, 2021, with further terms
and conditions being as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy
of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Agreement for the Removal of a Tank Battery and the Associated
Flowlines for the Bridge 54/13A Replacement Project between the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the
Department of Public Works, and Kerr-McGee Oil and Gas Onshore, LP, be, and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 28th day of April, A.D., 2021.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: ddia.m) „;e1
Weld County Clerk to the Board
BY:
AP
ounty A orney
Date of signature: OS foL-1 /2.t
Steve oreno ' hair
Sces, Pro -
Perry L. B( k
ike Freeman
Lori
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2021-1136
EG0079
3,n+nAc4 4L-1 Co9
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: Bridge 54/13A Kerr-McGee Facilities Removal Agreement
DEPARTMENT: Public Works
DATE: 4/14/21
PERSON REQUESTING: Don Dunker (County Engineer) and Michael Bedell (Senior Engineer)
Brief description of the problem/issue:
An existing oil/gas tank batery and three associated wells located on the north side of WCR 54 and
east of the Big Thompson River conflicts with the planned replacement of Bridge 54/13A.
Discussions and negotiations with Kerr-McGee have resulted in the proposal to abandon/remove
these facilities, as opposed to relocating them into a nearby area. The resulting Agreement has been
developed by both Public Works and Kerr-McGee staff, and reviewed by County Oil & Gas Energy
staff and County Attorney staff. The estimated cost to the County is $374,775.00.
What options exist for the Board? (include consequences, impacts, costs, etc. of options):
The Board may choose to recommend approval of the attached Agreement.
The Board may choose to offer suggestions or comments to rectify the issue.
The Board may choose to request Public Works staff schedule a work session to discuss the issue.
Recommendation:
Public Works staff recommends approval of the attached Agreement. Abandonment/removal of the
existing oil/gas facilities will have both long-term environmental and safety benefits. The Agreement
will also negate the need for the County to obtain additional easements from the affected landowner
on behalf of Kerr-McGee. If recommended for approval, staff will get this item onto an upcoming
BOCC Meeting agenda. If approved, Kerr-McGee is planning to complete the removal/abandonment
of their facilities during the summer of 2021.
Approve
Recommendation
Perry L. Buck
Mike Freeman
Scott K. James, Pro -tern
Steve Moreno, Chair
Lori Samna
tvi(
Schedule
Work Session
Other/Comments:
2021-1136
aE,OO 19
DocuSign Envelope ID: 8708040C-05CC-41 EB-877E-EE8981861 DDE
AGREEMENT FOR REMOVAL OF TANK BATTERY AND ASSOCIATED FLOWLINES
BETWEEN KERR-MCGEE OIL & GAS ONSHORE LP AND WELD COUNTY
GOVERNMENT FOR THE WELD COUNTY BRIDGE 54/13A PROJECT
THIS AGREEMENT, made and entered into this p I day of I ' , 2021, but
effective as of the Effective Date, by and between KERR-MCGEE OIL & AS ONSHORE LP,
a Delaware limited partnership with Colorado offices at 1775 Sherman Street, Suite 3000, Denver,
CO 80203, (hereinafter called "KERR-MCGEE") and THE COUNTY OF WELD, a political
subdivision of the State of Colorado, by and through the Board of County Commissioners of the
County of Weld, at P.O. Box 758, 1150 O Street, Greeley, CO 80632 (hereinafter called "County").
WITNESSETH:
WHEREAS, to promote the safety of the citizens of Weld County and other members of
the travelling public, County has undertaken the construction of a public improvement project,
known as the Bridge 54/13A Replacement Project, (hereinafter the "Project"), and
WHEREAS, to construct the Project, County intends to acquire additional property rights
from private property owners to utilize as CR54 right-of-way, and
WHEREAS, KERR-MCGEE owns the Croissant 19-43, Croissant 19-44, and DeWalt 19-
41 oil/gas wells, tank battery and associated flowlines (hereinafter the "facilities) currently located
outside of the CR 54 right-of-way, and
WHEREAS, the property burdened by the KERR MCGEE facilities is within CR 54 right-
of-way being acquired to complete the Project, and
WHEREAS, KERR MCGEE is willing to remove the facilities located in the future CR54
right-of-way to facilitate the construction of the Project, and
WHEREAS, County is willing to reimburse KERR MCGEE for an agreed upon portion of
the expenses it will incur because of the removal of their facilities.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereby agree as follows:
I. KERR-MCGEE RIGHTS and RESPONSIBILITIES
1. KERR-MCGEE Facilities Removal: KERR-MCGEE shall remove the existing
facilities as depicted on the Project Engineering Drawing, (copy of which are attached hereto as
Exhibit A and by this reference made a part hereof). All work necessary to accomplish the facilities
removal shall be performed in accordance with KERR-MCGEE specifications, in accordance with
accepted engineering practices, and in compliance with all applicable Weld County, State of
Colorado and Federal laws, rules and regulations.
2. Facilities Removal Not to Conflict with Improvements: KERR-MCGEE agrees
that the facilities removal shall not conflict with the proposed bridge replacement as depicted on
Exhibit A.
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Carly Koppel, Clark and Recorder, Weld County , CO
VIII Mini' k' N II III IOWilki 1I 111
DocuSign Envelope ID: 8708040C-05CC-41EB-877E-EE8981861DDE
3. Timing of Facilities Removal: KERR MCGEE shall complete the facilities
removal prior to December 31, 2021. If it is not possible to remove the facilities by the due date,
KERR-MCGEE shall notify Weld County of the potential delay. Weld County may extend the
deadline provided the new deadline does not impact Weld County's construction schedule.
4. KERR-MCGEE Responsible for Traffic Control: Throughout the relocation
process, KERR-MCGEE agrees that it shall be responsible for coordination of traffic control if
necessary and as established by the latest version of the "Manual on Uniform Traffic Control
Devices" (MUTCD).
5. KERR-MCGEE Shall Obtain Right -of -Way Permits: KERR-MCGEE shall
obtain all necessary permits from County required for its work. The County shall timely process
all necessary permits requested by KERR-MCGEE.
6. Reliance on KERR-MCGEE Expertise: County and KERR-MCGEE
recognize that County is relying solely on KERR-MCGEE to perform the facilities removal in a
manner which will ensure the future integrity of the bridge replacement to be constructed by the
County. Therefore, as part of its assurances under this Agreement, KERR-MCGEE affirms that it
maintains sufficient self-insurance, to satisfy any claim of negligence, intentional wrongful acts or
other acts or omissions which may arise because of any failure of the bridge caused by an improper
removal of their facilities.
7. KERR-MCGEE Warranty: KERR-MCGEE warrants that all work performed
under this Agreement will be performed in a manner consistent with the professional standards
governing such work and the provisions of this Agreement.
8. KERR-MCGEE Responsibility to Indemnify and Additional Agreements:
KERR-MCGEE shall defend and indemnify County from and against loss or liability to the extent
arising from its acts, errors, or omissions in seeking to perform its obligations under this
Agreement. Following the execution of this Agreement and for a period of twelve months
following the completion of the project, KERR-MCGEE represents that it is sufficiently self-
insurance and shall provide a letter evidencing such to the county if requested, but only with
respect to and to the extent of the liabilities assumed by KERR-MCGEE in this agreement. KERR-
MCGEE is liable for any damage to any third parties to the extent caused by their work, including
but not limited to, damage to agricultural or other infrastructure.
9. Test Results and Drawings: Upon completion of the work and if applicable,
KERR-MCGEE shall submit to County originals of any test results, drawings, etc., generated
during completion of this work. Acceptance by County of these documents and incidental material
furnished under this Agreement shall not in any way relieve KERR-MCGEE of responsibility for
the quality and accuracy of the work. Acceptance by the County of, or payment for, any of the
work performed under this Agreement shall not be construed as a waiver of any of the County's
rights under this Agreement or under the law generally.
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Carly Koppee, Clark and Recorder, Wald County , CO
VIII I rdrI4 4ilfi:Ili L I, NI Mt lillit liK7)'I Iiiii kill II
DocuSign Envelope ID: 8708040C-05CC-41 EB-877E-EE8981861 DDE
II. COUNTY RIGHTS and RESPONSIBILITIES
1. Estimates of Expenses: County has agreed to reimburse KERR-MCGEE for an
agreed upon portion of the expenses incurred in fulfillment of its obligations under this Agreement
as set forth in the Exhibit B, estimated to be $374,775.00.
2. Increases/Decreases in Estimated Expenses: KERR-MCGEE has estimated the
total cost of said work, which includes specific work outlined in the Exhibit B. If final actual costs
of the work are less than the estimated amount, KERR-MCGEE shall invoice the County for the
actual costs only. If the final costs exceed the attached Exhibit B, County shall pay those
reasonable additional expenses up to a maximum of an additional five percent (5%).
3. County to Stake Right -of -Way and Easements: N/A.
4. County's Right to Terminate: The County may terminate this Agreement at any
time prior to KERR-MCGEE commencement of the work. In such an event, the County shall pay
KERR-MCGEE for all expenses which were incurred by KERR-MCGEE related to the Project,
including but not limited to engineering, materials, equipment, surveying, crop damages,
payments, paid for by KERR-MCGEE, prior to the date of termination.
III. MISCELLANEOUS
1. Board of County Commissioners of Weld County Approval: This Agreement
shall not be valid until it has been approved by the Board of County Commissioners of Weld
County or its designee.
2. Agreement Binding: This writing, together with the exhibits, constitutes the entire
Agreement between the parties hereto with respect to the subject matter herein, and shall be
binding upon said parties their officers, employees, agents, and assigns and shall inure to the
benefit of the respective survivors, heirs, personal representatives, successors and assigns of said
parties.
3. No Third Party Beneficiary: It is expressly understood and agreed that the
enforcement of the terms and conditions of this Agreement, and all rights of action relating to such
enforcement, shall be strictly reserved to the undersigned parties, and nothing in this Agreement
shall give or allow any claim or right of action whatsoever by any other person not included in this
Agreement. It is the express intention of the undersigned parties that any entity other than the
undersigned parties receiving services or benefits under this Agreement shall be an incidental
beneficiary only.
4. Time of the Essence: Time is of the essence in each and all the provisions of this
Agreement.
5. Effective Date of Agreement: Notwithstanding anything in this agreement to the
contrary this Agreement shall not be effective or create requirements or obligations as to either
party until such time all 13 wells permitted on the Cummings 18-19HZwell pad are completed and
turned over to production which includes three phase flow (water, gas, and oil) to the permanent
facility. KERR-MCGEE shall notify the County within five (5) business days of the last well on
3
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Carly Koppes, Clerk and Recorder, Weld County , CO
lIII MPAIIKIIIiilliNM IFIk'NyErIINIr iIII1I III
DocuSign Envelope ID: 8708040C-05CC-41EB-877E-EE8981861DDE
the Cummings 18-19HZ well pad being turned over to production, with such date the notification
is sent being the Effective Date of this Agreement. In the event the entire Cummings 18-19HZ
well pad is not turned over to production by August 15, 2021, this Agreement shall be null and
void and the parties shall meet and confer regarding appropriate future actions. In such case,
County and KERR-MCGEE hereby agree to work together in a timely manner to initiate a
replacement Agreement, which would consist of relocating the existing facility instead of removal
of the existing facility, and completion of such work would have a tentative deadline of August
15, 2022.
6. Fund Availability: This Agreement assumes that the work will be completed on
or before December 31, 2021. Financial obligations of the Board of County Commissioners of
Weld County payable after the current fiscal year are contingent upon funds for that purpose being
appropriated, budgeted and otherwise made available. By execution of this Agreement, County
does not warrant that funds will be available to fund this Agreement beyond the December 31,
2021.
7. Severability: If any term or condition of this Agreement shall be held to be
invalid, illegal, or unenforceable, this Agreement shall be construed and enforced without such
provision, to the extent that this Agreement is then capable of execution within the original intent
of the parties.
8. Attorney Fees/Legal Costs: In the event of a dispute between County and KERR-
MCGEE, concerning this Agreement, the parties agree that neither KERR-MCGEE nor Weld
County shall be liable to or responsible for the payment of attorney fees and/or legal costs incurred
by or on behalf of the other party.
9. Subrogation Waiver: All insurance policies required to be maintained under the
terms of this Agreement or which are in any way related to this Agreement which are secured and
maintained by KERR-MCGEE shall include clauses stating that each carrier shall waive all rights
of recovery, under subrogation or otherwise, against County, its officers, employees, agents, or
volunteers.
10. Governmental Immunity: No term or condition of this contract shall be construed
or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections
or other provisions, of the Colorado Governmental Immunity Act §§24-10-101 et seq., as
applicable now or hereafter amended.
4
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Carly Koppel, Clerk and Recorder, Weld County , CO
VIII IOU Il1f i WWII III II
DocuSign Envelope ID: 8708040C-05CC-41 EB-877E-EE8981861 DDE
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their
duly authorized officials, two duplicate originals of this Agreement, each of which shall be deemed
an original, on the date first written above.
KERR-MCGEE OIL & GAS ONSHORE LP.
,-DocuSigned by:
DS DS
11 -all By: Volt. ( Jolt, Ill 4/6/2021
1/4DdifE2.9N5 ,6III, Attorney -in -Fact Date
ATTEST:
dirA,A) ..(d40:11
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Weld Cou Clerk to the Bo . d Steve Moreno, Chair
BY:
Deputy Clerk t
5
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Carly Koppea, Clerk and Recorder, Weld County , CO
APR 282021
olo 4/56.
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Carly Koppes, Clerk and Recorder, Weld County , CO
iii rrl'R, i'a' '
ii�lti 1111
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71' NEW BRIDGE
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OCCIDENTAL PETROLEUM (OXY)
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DECOMMISSIONED
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PROPOSED 4"
STEEL CONNECTION
TO EXISTING DCP
12'W
P/E
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LOT A
CROISSANT FAMILY FARM, LLC
(REC_NOs 4170160 8 4170162)
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PROPOSED 20'
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& PVREA
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PVREA OHP
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COUNTY ROAD BRIDGE 54/13A
WELD COUNTY
KERR-MCGEE AGREEMENT
EXHIBIT A
CV
P/E
4'G
EXISTING FACILITY WITHIN FENCE
PROPOSED FACILITY WITHIN FENCE
H
4'G
REMOVE 4" STEEL DCP GAS LINE
REMOVE
6* PE XCEL
GAS LINE
CROISSANT FAMILY FARM, LLC
(REC.NOs. 4170160 & 4170162)
0
P/E
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40
80 r
1!5:1•0,00
SCALE IN FEET
11"X17"
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D: 8708040C-05CC-41 EB-877E-EE8981861 DDE
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Carly Koppes, Clerk and Recorder, Weld County , CO
in 111111
WCR 54 Bridge Project - Cost Estimate for Removal of Oil and Gas
3/25/2021
P&A (Plug & Abandon)
Well plugging (rig work)
Cut and Cap and remove flowlines
Remove 2 tanks, 1 pit, 1 sep, 1 ECD and flood anchors
Camwsler vis)
CROISSANT 19-43 CROISSANT 19-44 DEWALT 19-41 FACILITY (TB)
$ 125,000 $
$ 9,000 $
125,000 $ 125,000
9,000 $ 17,000
$ 10,000
TOTAL
SUBTOTAL P&A
Reclamation
Average Reclamation (per well)
Extensive recontouring
Road base and topsoil (Facility/Access Road)
Maintenance Reclamation (4 yrs in pasture)
SUBTOTAL RECLAMATION:
$ 11,000 $
50,000
10,000 $
71,U00 $
11,000 $
11,000 (Incl. in well)
$ 10,000
10,000 $
21,000 $
$ 50,000
10,000 (Incl. in well)
31,000 $ 50,000
$ 420,000
$ 173,000
REMOVAL COST ESTI MATE
ESTIMATED PROJECT SCHEDULE - P&A 3 Wells and Remove Production Facility
Schedule of events for abandonment of the following wells: DEWALT 19-41, CROISSANT 19-44, CROISSANT 19.43
$ 593,000
Activity Type 6/14/2021 6/21/2021 6/28/2021 7/S/2021 7/12/2021 7/19/2021 7/26/2021 8/2/2021 8/9/2021 8/16/2021 8/23/2021 8/30/2021 '/4
Equipment Abandonment/Flowline Removal/Road Base Removal
P&A Operations
Cut & Cap Operations
Reclamation Activities
'Schedule assumes there are no eagle stips.
Disclaimer: This estimate is an approximation and not a guaranteed of the cost and schedule anticipated for this project, based on information available at this time.
The estimate provided is subject to change based on economic conditions, supply availability and regulatory permitting requirements.
D: 8708040C-05CC-41 EB-877E-EE8981861 DDE
New Contract Request
Entity ID*
KERR-MCGEE OIL & GAS ONSHORE '00O38581
❑ New Entity?
Name* Contract ID
BRIDGE 54-13A AGREEMENT FOR FACILITIES REMOVAL 4-694
tract Status
REVIEW
Contract Lead*
MBEDELL
Contract Lead Email
MBedell@co.weld.co.us
Parent Contract ID
Requires Board Approval
YES
Department Project #
GR-57
Contract Description*
AGREEMENT FOR REMOVAL/ABANDONDMENT OF THREE OIL/ GAS WELLS AND ASSOCIATED FACILITIES WHICH CONFLICT
WITH THE PROPOSED REPLACEMENT OF BRIDGE 54-1 3A.
Contract Description 2
Contract Type
AGREEMENT
Amount*
$374,775.00
Renewable
NO
Department
PUBLIC WORKS
Department Email
CM-
PublicWorks@weldgov.com
Department Head Email
CM-PublicWorks-
DeptHeadAveIdgov.com
County Attorney
GENERAL COUNTY
Al IORNEY EMAIL
County Attorney Email
CM-
COUNTYATTORNEYOWELDG
OV.COM
if this is a renewal enter previous Contract ID
If this is part of a MSA enter MSA Contract ID
Requested BOCC Agenda
Date*
04/28/2021
Due Date
04/24,2021
Will a work session with BOCC be required?
NO
Does Contract require Purchasing Dept. to be included?
NO
Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in
OnBase
Effective Date
Review Date*
12 X31 =2021
Renewal Date
Termination Notice Period
Committed Delivery Date
Expiration Date s
1 2 '31/2021
Contact Information
Contact Info
Contact Name
Purchasing
Purchasing Approver
Approval Process
Department Head
JAY MCDONALD
DH Approved Date
04; 19,+2021
Final Approval
BOCC Approved
BOCC Signed Date
BOCC Agenda Date
04/28/2021
Originator
MBEDELL
Contact Type Contact Email
Finance Approver
BARB C0NNOLLY
Contact Phone 1 Contact Phone 2
Purchasing Approved Date
Finance Approved Date
04120'2021
Tyler Ref #
AG 042821
Legal Counsel
BOB CHOATE
Legal Counsel Approved Date
04'20c2021
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