The URL can be used to link to this page

Browse Search

Home My WebLink About20202529.tifffri)-e j- -TV 4k. 11O III BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW/Regular or Consent Hearing Agenda REQUEST RE: BOCC Agenda Item - Approve Road Maintenance Agreement for: Verdad Resources, LLC — 1041 WOGLA20-0022 DEPARTMENT: Public Works DATE: August 3, 2020 PERSON REQUESTING: Jazmyn Trujillo -Martinez RECEIVED AUG 1 1 2020 WELD COUNTY COMMISSIONERS Brief description of the issue: The Department of Public Works received a request from the applicant, Verdad Resources, LLC, requesting that the Board of County Commissioners consider approving the Road Maintenance Agreement for (1041 WOGLA20-0022). No collateral is required with this agreement. The Oil and Gas Energy Department's hearing for 1041 WOGLA20-0022 is scheduled for August 6, 2020. Weld County Public Works and Oil and Gas Energy Department have reviewed the above -mentioned signed original document and observed the following: • All Public Works related items, of the "Road Maintenance Agreement According To Policy", are found to be acceptable. • This Agreement complies with the terms of the WOGLA Permit, as signed by the Director of Oil and Gas Energy Department. • This Agreement follows the template approved by the County Attorney. What options exist for the Board? 1. Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda. 2. Have this BOCC Hearing item be placed on the next available agenda as part of the Regular Agenda. Recommendation: Option 1. The Departments of Public Works, Planning Services and the County Attorney's Office are recommending approval of the Road Maintenance Agreement According To Policy for 1041 WOGLA20-0022, and that this item be placed on the next regularly scheduled BOCC Hearing, as part of the Consent Agenda. Mike Freeman, Chair Scott K. James Barbara Kirkmeyer Steve Moreno, Pro-Tem Kevin D. Ross edniLevit af.z#106._ /7-ao.Zc.O Approve Recommendation BOCC Hearing Item Other/Comments: Schedule as Regular cam: PWCOA/ ZT(Y1 / TA / TL), ©GCJM/ Coen) oer aorao r-02.7 a° 2020-2529 O cw3 ROAD MAINTENANCE IMPROVEMENTS AGREEMENT Verdad Resources, LLC — 1041 WOGLA20-0022 THIS AGREEMENT is made this ( F' day of Au0v6+ , 202O, by and between Verdad Resources, LLC, a corporation organized under the laws of the State of Colorado, whose address is 1125 17th Street, Suite 550, Denver, Colorado 80202, hereinafter referred to as "Operator," authorized to do business in the State of Colorado, and the County of Weld, a body corporate and politic of the State of Colorado, by and through its Board of County Commissioners, whose address is 1150 "O" Street, Greeley, Colorado 80631 hereinafter referred to as "County." WITNESSETH: WHEREAS, "Operator" is the responsible party of the 1041 Weld Oil & Gas Location Assessment (1041 WOGLA) permit located on the following described property in the County of Weld, Colorado: SW1/4 SW1/4 of Section 30, Township 9 North, Range 59 West of the 6th P.M., Weld County, Colorado hereinafter referred to as "the Property," and WHEREAS, Operator has received approval by the Hearing Officer of the Oil and Gas Energy Department for 1041 WOGLA20-0022, and WHEREAS, Operator acknowledges that the final approval of 1041 WOGLA20-0022 is conditional upon Operator's agreement to fund road maintenance, as described in this Agreement. NOW, THEREFORE, IN CONSIDERATION OF the foregoing and of the promises and covenants contained herein, the parties hereto promise, covenant and agree as follows: PART I: SITE SPECIFIC PROVISIONS A. PRIOR TO CONSTRUCTION AND OPERATIONS: 1.0 Haul Routes: The Operator shall provide haul routes to be reviewed and approved by the Department of Public Works. The Operator shall be financially responsible for its proportional share of the County's costs associated with maintaining and/or improving designated haul/travel routes as related to traffic generation. Traffic generated from this site shall enter and exit at the approved access on CR 100 and travel to the nearest paved arterial or collector road, or highway, and remain on paved roads for further dispersal. Any County roads used by traffic associated with 1041 WOGLA20-0022 may become part of the established haul/travel routes. 1.1 Haul Routes. The following roads are designated as haul/travel routes for any time period designated as construction or high -volume traffic to and from the Property: 1) See "EXHIBIT A" - Haul Route Map. 2) The haul route shall remain in effect during all times of heavy road use including but not limited to, construction, drilling of wells, and hydraulic fracturing. Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 1 of 8 2.0 Notice of Construction. A pre -construction inspection and a post -construction inspection shall be performed by County personnel to determine the site -specific condition of the road. The Operator shall provide the Weld County Department of Public Works with two weeks advance notice of the start of construction activities authorized by the 1041 WOGLA permit and shall give additional notice within two weeks after construction has been completed. 3.0 Weight Limits. No travel vehicles may exceed CDOT required specifications for pounds -per -axle and axle configurations unless overweight permits have been applied for and granted. Operator is responsible for researching weight limited bridges and obtaining a Special Transport Permit in accordance with Chapter 8, Article XV, when establishing haul routes, and furthermore, must follow County overweight permit and regulations. 4.0 Temporary Deviations. The Weld County Department of Public Works Director may approve temporary (six months or less) deviations from the haul routes described above. To receive such approval, the Operator must submit an updated haul route map and written request stipulating the reasons for the deviation, which will be reviewed by the Department of Public Works. Any change in haul route lasting more than six months shall require an amendment to this Agreement approved by the Board of County Commissioners. 5.0 Haul Route Signage. Operator shall install travel route signs, if applicable, as per Manual of Uniform Traffic Control Devices standards, at all exit points of the Property which can be clearly seen by drivers leaving the facility and which clearly depict County approved travel routes. 6.0 No Deviation from Permitted Haul Routes. Except as authorized by the Weld County Board of County Commissioners or the Director of the Department of Weld County Public Works, pursuant to this Agreement, no use of any roads other than those specifically authorized for use in this Agreement is permitted without the prior written amendment of this Agreement. B. Maintenance Requirements: 1.0 Off -site recurring maintenance, if applicable, and as required by the Departments of Public Works and Oil and Gas Energy, shall only be performed by a County approved contractor and have a county Right - of Way permit for that specific location: 2.0 Dust Control. Operator shall be financially responsible for maintaining dust control on unpaved designated haul/travel routes during any period of construction, heavy truck traffic, and/or high -volume trip generation. The amount and extent of dust control will be coordinated with Public Works Gravel Roads Division by site -specific conditions at the time. Operator shall use a County -pre -approved contractor for chemical applications. Chemical treatment of unpaved roads along the relevant haul/travel route(s) is expected to occur approximately two to five times per year, or as required by Public Works. If traffic associated with this use exceeds 200 vehicles per day, per Weld County Code Section 8-6-100, the Operator shall be responsible for dust abatement. On the basis of damage or complaints, as determined by the County, the Operator shall cause to be performed within two days of notification, at its sole expense, chemical dust control, or other treatment, by a contractor approved by Weld County Public Works. Should the traffic related to 1041 WOGLA20-0022 deteriorate the chemical application performed by the County, the Operator will be responsible for re -applying chemical to return the road to pre -construction condition. Depending on the amount of maintenance, as related to traffic associated with this use, the Department of Public Works may require an alternative treatment method which may or may not include: topical chemical application, full -depth chemical application, recycled asphalt or other surface treatment. Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-003 1 Page 2 of 8 3.0 Repair. Operator shall be financially responsible for its proportional share of the repair or improvement, including but not limited to, excavation, patching, pavement and/or gravel repair, grading, installing material on designated haul/travel routes. The amount and extent of repair and/or paving measures will be determined by site -specific conditions at the time, as determined exclusively by County personnel. Weld County and Operator will work together on a plan needed for repair of any roads, including who performs the repair. Operator shall provide the County with a pre -approved contractor to be used for repairs. 4.0 Need for Immediate Repairs: In the event of damage to a designated haul/travel route by project traffic that causes an immediate threat to public health and safety or renders the road impassible ("Significant Damage"), County shall, after inspection, notify Operator of such Significant Damage. Operator shall identify the repair required and shall consult with County on the extent, type, timing, materials and quality of repair (i.e. temporary versus permanent) within twenty-four (24) hours after receipt of such notice and shall commence such repair within forty-eight (48) hours after receipt of such notice. If Operator identifies Significant Damage prior to receiving notice thereof from County, Operator may commence repair of such Significant Damage and shall concurrently notify County of the extent, type, timing, materials and quality of repair (i.e. temporary versus permanent). 5.0 Repair of Road: On or before December 31 of the calendar year in which County staff has determined through site analysis and/or pavement testing that a particular haul/travel route road portion will require paving measures or major gravel maintenance in order to protect the public health, safety, and welfare, and the County has budgeted sufficient funds for the following calendar year to pay its share of the Off -Site Improvement/Repair Costs, County shall notify Operator in writing that the Off -Site Improvements/Repairs shall be undertaken and shall provide an alternate haul route for the duration of those repairs. In County's sole discretion, County may undertake the repairs and/or improvements. Operator's payment for its Proportionate Share of the road repairs/improvements will be calculated as determined in this Agreement. Operator will be invoiced accordingly for those proportional share costs. 6.0 Calculation of Operator's Proportional Share of Costs. The County shall notify Operator of County's preliminary determination and assessment of Operator's proportional share of costs of maintenance, repair, or improvements to Operator's designated haul/travel routes. Prior to County's final determination and assessment, County shall provide Operator with a reasonable opportunity to review, comment upon and supplement County's data, collection methodology, and determinations. The County shall review and consider Operator's input prior to making a final determination and assessment. The County shall have sole responsibility for determination of Operator's proportional share of costs. Operator agrees to pay such proportional share of costs within 30 days of receiving an invoice from County. 7.0 Annual Road Inspection. County may conduct a road inspection annually with the cooperation of — Operator for the haul routes designated in this Agreement. As a result of the annual inspection, County, in its sole discretion, shall determine actual conditions and shall further determine what road repair/improvement/maintenance work is to be performed during that construction season. Notification to the Operator of the required roadway repairs will be given as soon as the data become available. m3 8.0 Notification. The County shall notify Operator of County's preliminary determination and w assessment of Operator's proportionate share of costs of maintenance, repair, or improvements to °LL o Operator's designated haul/travel routes. Prior to County's final determination and assessment, County shall provide Operator with a reasonable opportunity to review, comment upon and supplement County's tea_ data, collection methodology, and determinations. The County shall review and consider Operator's input •m L prior to making a final determination and assessment. d�oti GU PART II: GENERAL PROVISIONS N a — Erg r)N o Sato aM Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 3 of 8 A. Permits: The Operator is required to apply for and receive all permits required by the County or any other applicable local, State, or federal permit, including but not limited to: 1.0 Access Permits. Operator shall not use any access onto any County road unless and until an access permit has been issued by the Department of Public Works. Public Works may condition the issuance of an updated access permit on the amendment of this Agreement if the updated access permit authorizes the use of an additional access point, or if there is a change in use of the current access point, as permitted by Article XIV of Chapter 8 of the Weld County Code. 2.0 Right -of -Way (ROW) Permits. Per Article XIII of Chapter 8 of the Weld County Code, any work occurring within County ROW requires a ROW permit issued by the Department of Public Works. No work shall occur without said ROW permit. 3.0 Transport Permits. Per Article XV of Chapter 8 of the Weld County Code, a Weld County Transport Permit is required for Extra -legal vehicles using Weld County roadways to ensure the operation and movement of Extra -legal Vehicles and Loads occurs in a safe and efficient manner. B. Enforcement and Remedies: 1.0 Violation of Terms of Agreement. If in County's opinion, Operator has violated any of the terms of this Agreement, County shall notify Operator of its belief that the Agreement has been violated and shall state with specificity the facts and circumstances which County believes constitute the violation. Operator shall have fifteen (15) days within which to either cure the violation or demonstrate compliance. If, after fifteen (15) days have elapsed, County believes in good faith that the violation is continuing, County may consider Operator to be in breach of this Agreement. 2.0 Remedies for Breach by Operator. In the event that County determines that Operator has violated the terms of this Agreement, and has failed to correct said violation, County may exercise any or all of the following remedies, or any other remedy available in law or equity. 2.1 Court Action. County may seek relief in law or equity by filing an action in the Weld District Court or Federal District Court for the District of Colorado, except that no such civil action or order shall be necessary to access collateral for the purpose of completing improvements as described above. 2.2 Revocation of 1041 WOGLA Permit. Operator acknowledges that failure to comply with the terms of this Agreement constitutes cause to revoke the 1041 WOGLA, and County may exercise this option in its sole discretion by proceeding with revocation under the current provisions of the Weld County Code. 3.0 events: Termination of Agreement. This Agreement shall terminate upon the earliest of the following 3.1 Failure to Commence. County may terminate this Agreement upon or after rescission of the underlying 1041 WOGLA permit approval under Weld County Code Chapter 21. However, County may still exercise all necessary activities under this Agreement that the County determines necessary to protect the health, safety, and welfare of the residents of Weld County. 3.2 Cessation of all Permit Related Activities. Termination of this Agreement shall occur upon Operator's complete cessation of all activities permitted by the 1041 WOGLA, including any clean Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 4 of 8 up or restoration required. A partial cessation of activities shall not constitute a Termination of this Agreement, nor shall County's issuance of a partial release/vacation constitute a Termination. Unless informed in writing by the Operator of cessation of activities, and verified by the County, cessation shall only be presumed if the County determines that the site has been inactive for three (3) years. 3.3 Execution of Replacement Agreement. This Agreement shall terminate following County's execution of a new Improvements Agreement with a new Operator who has purchased the Property or has assumed the operation of the business permitted by the 1041 WOGLA, and intends to make use of the rights and privileges available to it through the then existing WOGLA. 3.4 Revocation of 1041 WOGLA. This Agreement shall terminate following County's revocation of Operator's WOGLA, except that the Operator shall only be released from this Agreement after the successful completion of any/all reclamation required under this Agreement. C. General Provisions: 1.0 Successors and Assigns. 1.1 Except for the assignment of all or substantially all of Operator's assets, Operator may not delegate, transfer, or assign this Agreement in whole or in part, without the prior express written consent of County and the written agreement of the party to whom the obligations under this Agreement are assigned. Consent to a delegation or an assignment will not be unreasonably withheld by County. In such case, Operator's release of its obligations shall be accomplished by County's execution of a new Agreement with the successor Operator of the property. 1.2 County's rights and obligations under this Agreement shall automatically be delegated, transferred, or assigned to any municipality which, by and through annexation proceedings, has assumed jurisdiction and maintenance responsibility over roads affected by this Agreement. 2.0 Severability. If any term or condition of this Agreement shall be held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, 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. 3.0 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. 4.0 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. 5.0 Entire Agreement/Modifications. This Agreement including the Exhibits attached hereto and incorporated herein, contains the entire agreement between the parties with respect to the subject matter contained in this Agreement. This instrument supersedes all prior negotiations, representations, and Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 5 of 8 understandings or agreements with respect to the subject matter contained in this Agreement. This Agreement may be changed or supplemented only by a written instrument signed by both parties. 6.0 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, Colorado or its designee. 7.0 Choice of Law/Jurisdiction. Colorado law, and rules and regulations established pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included or incorporated herein by reference which conflicts with said laws, rules and/or regulations shall be null and void. In the event of a legal dispute between the parties, the parties agree that the Weld County District Court or Federal District Court for the District of Colorado shall have exclusive jurisdiction to resolve said dispute. 8.0 Attorneys' Fees/Legal Costs. In the event of a dispute between County and Operator, concerning this Agreement, the parties agree that each party shall be responsible for the payment of attorney fees and/or legal costs incurred by or on its own behalf. 9.0 Release of Liability. Operator shall indemnify and hold harmless the County from any and all liability loss and damage County may suffer as a result of all suits, actions, or claims of every nature and description caused by, arising from, or on account of the design and construction of improvements, and pay any and all judgments rendered against the County on account of any such suit, action or claim, and notwithstanding Section 7.0 above, together with all reasonable expenses and attorney fees incurred by County in defending such suit, action or claim whether the liability, loss or damage is caused by, or arises out of the negligence of the County or its officers, agents, employees, or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the County or its employees while acting within the scope of their employment. All contractors and other employees engaged in construction of the improvements shall maintain adequate worker's compensation insurance and public liability insurance coverage and shall operate in strict accordance with the laws and regulations of the State of Colorado governing occupational safety and health. 10.0 Binding Arbitration Prohibited. Weld County does not agree to binding arbitration by any extra judicial body or person. Any provision to the contrary in this Agreement or incorporated herein by reference shall be null and void. 11.0 Authority to Sign. Each person signing this Agreement represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Agreement. Each party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such party's obligations hereunder have been duly authorized and that the Agreement is a valid and legal agreement binding on such party and enforceable in accordance with its terms. If requested by the County, Operator shall provide the County with proof of Operator's authority to enter into this Agreement within five (5) days of receiving such request. 12.0 Acknowledgment. County and Operator acknowledge that each has read this Agreement, understands it and agrees to be bound by its terms. Both parties further agree that this Agreement, with the attached or incorporated Exhibits, is the complete and exclusive statement of agreement between the parties and supersedes all proposals or prior agreements, oral or written, and any other communications between the parties relating to the subject matter of this Agreement. Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 6 of 8 13.0 Notwithstanding any other provision contained in this Agreement, for any conflict or potential conflict between any term in this Agreement and the Resolution of the Board of County Commissioners approving the underlying land use permit, the provisions of the Board's Resolution shall control. In the event of a discrepancy between this agreement and the Weld County Code in effect at the time of the agreement, the terms of the Weld County Code shall control. Veredad Resources, LLC — 1041 WOGLA20-0022 - RMA20-0031 Page 7 of 8 OPERATOR: - ' ad Re e rces, LLC By: Name: Title: /P, Lot. - STATE OF COLORADO County of Wet 1) 44 .f(c Date: 3;4- Z Z c z_v ss. The foregoing instrument was acknowledged before me this A day of �•+ne. 202V, by oa,':S 2; 4Rrd Ion WITNESS my hand and official seal. JEFFREY ALLEN BERGHORN Notary Public State of Colorado Notary 1O # 20164017266 My Commission Expires 04-30-2023 mer WELD COUNTY: ..,Q : ( ATTEST: ) v• JC.O•(.1 Weld County Clerk to the Board BY eputy Clerk to the Bo VP L 4n J BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ike Freeman, Chair AUG 17 2020 Veredad Resources, LLC — 1041 WOGLA20-0022 — RMA20-0031 Page 8 of 8 000 - asaq • • 4 I p r 1041 WOGLA20-002 _ . - M 11% Tamera K. Martin t N 7 part Access Lat/Long Mike Shull Living Trust A Lot: 40.714848 Lon: -104.027586 % "i WCR 100 �,, -N -as-i a OD AM s in SS al a� M . Wit- 4. , Access ' 1 Road State of Colorado .. Driving Directions: Starting North on WCR 105, turn East at the intersection of WCR 105 and WCR 100. Continue East for 2.20 miles, turn North onto access road for Martin 3030-3031 pad for 470'. • C 019 0O - 'a -3 O W LL- O U • W Cr 1IC 13 41a (0� -CeL CL 'e w Z_ Gs N N a MNMr) CO a a. MAY ID CO eGoU mr. • • Michael Shull Living Trust LEGEND Proposed Access Road am as no .. Driving Route Proposed Access Road: 470' .0 • t. • • • 2 Contract Form New Contract Request Entity Information Entity Name* VERDAD RESOURCES LLC Entity ID* @00038645 Contract Name* RMA20-0031 1041WOGLA20-0022 VERDAD RESOURCES. LLC Contract Status CTB REVIEW Contract Description* RMA20-0031 1041 WOGLA20-0022 VERDAD RESOURCES. LLC Contract Description 2 Contract Type* AGREEMENT Amount * $0.00 Renewable* NO Automatic Renewal Grant IGA Department PUBLIC WORKS Department Email CM- PublicWorks@weldgov.com Department Head Email CM-PublicWorks- DeptHead@weldgov.com County Attorney BOB CHOATE County Attorney Email BCHOATE@CO.WELD.CO.US CO. US ❑ New Entity? Contract ID 4014 Contract Lead* DRANDERSON Contract Lead Email dranderson@co.weld _co us NO COLLATERAL REQUIRED Requested BOCC Agenda Date* 08/17/2020 Parent Contract ID Requires Board Approval YES Department Project # Due Date 08/13/2020 Will a work session with BOCC be required?* NO Does Contract require Purchasing Dept. to be included? NO If this is a renewal enter previous Contract ID If this is part of a MA enter MA Contract ID Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in On8ase Contract Dates Effective Date Termination Notice Period Review Date* 08/10/2021 Renewal Date Committed Delivery Date Expiration Date* 08/17/2021 Contact Information Contact Info Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2 Purchasing Purchasing Approver CONSENT Approval Process Department Head JAY MCDONALD DH Approved Date 08/11/2020 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 08/17/2020 Originator DRANDERSON Finance Approver CONSENT Purchasing Approved Date 08/11/2020 Finance Approved Date 08/11/2020 Tyler Ref # AG 081720 Legal Counsel CONSENT Legal Counsel Approved Date 08/11/2020 Submit Hello