HomeMy WebLinkAbout20191843.tiffDavid R. Bickerstaff
Independent Petroleum Geologist
6040 Greenwood Plaza Blvd
Greenwood Village, CO 80111
303.345.1289
david@bainc.net
4/25/19
Subject: Weld County Mineral Lands Minimum Auction Bid
Dear Sir/Madame:
RECEIVED
MAY 0 2 2019
COMMISSIONERS
This letter is to ask the Weld County Commission to reconsider the minimum bid and royalty rate for
county owned minerals. The minimum bid as it stands now is $600.00 acre and a 22.5% royalty rate. I
would respectfully suggest that the minimum bid and royalty is too high for certain parcels contained
within the county.
Because of the prominence of the Oil and Gas industry in Weld County, you may be familiar with the
"fairway" of the Niobrara/Codell horizontal oil and gas play and may have seen maps or illustrations that
depict the play. The drilling and production fairway generally trends from the southwest to the
northeast of Weld county and lands contained within this trend are the most active and valuable. In the
northwest and southeast areas of Weld County there are large triangular areas that are outside the
production fairway and are therefore far less valuable and are of higher risk to oil and gas explorers. For
example, recent (August 2018) state of Colorado Land Board sales data for lands contained within the
southeast non -fairway "triangle" had bids ranging from $0.00 to $669.00 per acre. Average bid for the
auction was $149.28/acre, only one of fourteen tracts was over $600.00.
In addition, recent state level Oil and Gas rule changes have brought uncertainty to exploration and
production to Colorado, particularly the front range. Justified or not, it is likely that current actions by
the legislature has devalued minerals owned by Weld County and the of value associated lease bonuses.
In an effort to have Weld County minerals explored outside the fairway and possibly increase royalty
income to the County, I would encourage the commission to consider lowering or eliminating the
minimum bonus bid and • . er the royalty rate to 18% on tracts outside the Niobrara/Codell fairway
as described abov
Very t my
David R. Bickerstaff
Petroleum Geologist
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