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HomeMy WebLinkAbout20193157.tiffAugust 6, 2019 Petitioner: WELLS RANCH 32010 COUNTY ROAD 63 GILL, CO 80624-9314 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBS ITE: www.weldclov.com 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO NOTICE OF DECISION Docket 2019-3157 Appeal 2008224806 Hearing 8/5/2019 Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. §39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2019. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board R1174186 Stipulated - Approved Stipulated Value $198,729 $60,923 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2019, MUST comply with the following provisions of C.R.S. §39-8-107(5): (5)(a)(I) On and after August 10, 2019, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the Board of Assessment Appeals pursuant to C.R.S. §39-8-108(1) or a denial of an abatement of taxes pursuant to C.R.S. §39-10-114 shall provide to the County Board of Equalization or to the Board of County Commissioners of the County in the case of an abatement, and not to the Board of Assessment Appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the Board of Assessment Appeals. (b)(I) The Assessor, the County Board of Equalization, or the Board of County Commissioners of the County, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the Board of Assessment Appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the County may move the Board of Assessment Appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the County Attorney and shall be accompanied by a certification that the County Assessor or the County Board of Equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the Board of Assessment Appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the Board of Assessment Appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: (303) 864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(1), the rules of Colorado appellate review and C.R.S. §24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. §39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e. Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, BOARD OF EQUALIZATION Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Dones, Weld County Assessor COUNTY BOARD OF EQUALIZATION WELD COUNTY Single County Schedule Number R1174186 STIPULATION (As To Tax Year 2019 Actual Value) RE PETITION OF : NAME: ADDRESS: Wells Ranch 32010 COUNTY ROAD 63 Gill, CO 80624-9314 Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation regarding the tax year 2019 valuation of the subject property, and jointly move the Board of Equalization to enter its order based on this Stipulation. Petitioner (s) and Assessor agree and stipulate as follows: 1. The property subject to this Stipulation is described as: ALL 24 6 63 EXC OG&M ON N2 2. The subject property is classified as Agricultural property. 3. The County Assessor originally assigned the following actual value to the subject property for the tax year 2019 : Total $198,729 4. After further review and negotiation, Petitioner (s) and Weld County Assessor agree to the following tax year2019 actual value for the subject property: Total $60,923 5. The valuation, as established above, shall be binding only with respect to tax year2019 6. Brief narrative as to why the reduction was made: Review of ground lease indicates improvement belong to lessee. 7. Both parties agree that: FA I The hearing scheduled before the Board of Equalization on 8/1/19 at 1:30 PM be vacated. A hearing has not yet been scheduled before the Board of Equalization. 1 �0f`1-3157 ASoo3 DATED this 31st day of July 2019 Pa -rick L. McNear Patrick L. McNear (Jul 31, 2019 Petitioner(s) or Agent or Attorney Address: 1212 8th Avenue Greeley Colorado 80631 Telephone: 970-381-0628 Docket Number R1174186 Stip-1.Frm ,n44m-i'IJ (Assistant) County Attorney for Respondent, Weld County Board of Commissioners Address: 1150 "O" Street P.O. Box 758 Greeley, CO 80632 Telephone:(970) 336-7235 County Assessor Address: 1400 N.17th Avenue Greeley, CO 80631 Telephone: (970) 400-3650 R1174186 / Wells Ranch Final Audit Report 2019-07-31 Created: 2019-07-31 By: Wade Melies (wmelies@co.weld.co.us) Status: Signed Transaction ID: CBJCHBCAABAAGcD54If3E5bEFmvN_WvWdLU2jAL-NCLN "R1174186 / Wells Ranch" History fi Document created by Wade Melies (wmelies@co.weld.co.us) 2019-07-31 - 6:50:21 PM GMT- IP address: 204.133.39.9 k--« Document emailed to Wade Melies (wmelies@co.weld.co.us) for approval 2019-07-31 - 6:50:23 PM GMT Document approved by Wade Melies (wmelies@co.weld.co.us) Approval Date: 2019-07-31 - 6:50:33 PM GMT - Time Source: server- IP address: 204.133.39.9 Document emailed to Wade Melies (wmelies@weldgov.com) for approval 2019-07-31 - 6:50:35 PM GMT Email viewed by Wade Melies (wmelies@weldgov.com) 2019-07-31 - 7:12:33 PM GMT- IP address: 204.133.39.9 Co Document approved by Wade Melies (wmelies@weldgov.com) Approval Date: 2019-07-31 - 7:14:57 PM GMT - Time Source: server- IP address: 204.133.39.9 Document emailed to Brenda Dones (bdones@co.weld.co.us) for signature 2019-07-31 - 7:14:58 PM GMT Email viewed by Brenda Dones (bdones@co.weld.co.us) 2019-07-31 - 7:30:57 PM GMT- IP address: 204.133.39.9 Leo Document e -signed by Brenda Dones (bdones@co.weld.co.us) Signature Date: 2019-07-31 - 7:31:09 PM GMT - Time Source: server- IP address: 204.133.39.9 Document emailed to Patrick L. McNear (topmojo@aol.com) for signature 2019-07-31 - 7:31:11 PM GMT t Email viewed by Patrick L. McNear (topmojo@aol.com) 2019-07-31 - 9:48:07 PM GMT- IP address: 98.138.18.116 Zit• 1 � Adobe Sign • _ o Document e -signed by Patrick L. McNear (topmojo@aol.com) Signature Date: 2019-07-31 - 9:50:47 PM GMT - Time Source: server- IP address: 96.88.82.153 Document emailed to Karin McDougal (weld-cboe@weldgov.com) for signature 2019-07-31 - 9:50:49 PM GMT Email viewed by Karin McDougal (weld-cboe@weldgov.com) 2019-07-31 - 10:48:33 PM GMT- IP address: 204.133.39.9 Document e -signed by Karin McDougal (weld-cboe@weldgov.com) Signature Date: 2019-07-31 - 11:13:07 PM GMT - Time Source: server- IP address: 204.133.39.9 Q Signed document emailed to Karin McDougal (weld-cboe@weldgov.com), Patrick L. McNear (topmojo@aol.com), Wade Melies (wmelies@co.weld.co.us), Brenda Dones (bdones@co.weld.co.us). and 2 more 2019-07-31 - 11:13:07 PM GMT Adobe Sign Thank you for submitting an appeal to the Weld County Board of Equalization. We will review the information submitted and you will receive a date to appear before the board. Contact Information: Contact Name: Patrick McNear Contact Email: topmojo@aol.com Contact Phone: 970-381-0628 Appeal Submitted: 03:58 PM July 15, 2019 Appeal submitted for: R1174186 - WELLS RANCH Legal: 7693 ALL 24 6 63 IE,XC OG&M ON N2 Reason: Incorrect Info - The property owner does not own the improvements being taxed as industrial and receives rental revenue based on a limited agricultural use for the real property owned. Estimate of Value: $16,004.00 Document(s) Submitted: Account: All Accounts - Executed Wells Ranch Surface Lease 1.pdf You have selected the following Date Preferences: Thursday, July 25, 2019, from 1:30 p.m. to 4:30 p.m. Thursday, July 25, 2019, from 9:00 a.m. to 12:00 p.m. Friday, July 26, 2019, from 9:00 a.m. to 12:00 p.m. Friday, July 26, 2019, from 1:30 p.m. to 4:30 p.m. Monday, July 29, 2019, from 3:00 p.m. to 4:30 p.m. Tuesday, July 30, 2019, from 1:30 p.m. to 4:30 p.m. Thursday, August 1, 2019, from 1:30 p.m. to 3:30 p.m. Thursday, August 1, 2019, from 9:00 a.m. to 12:00 p.m. The Appeal process can take several weeks for us to complete. You will receive a written decision on your appeal within five (5) working days of your hearing. We thank you for your submittal. Weld County Board of Equalization 2019-3157 ASO%03 SURFACE LEASE This SURFACE LEA SE dated as of May , 2012 (the "Lease"), is by and between Steven T. and Teresa L. Wells tenants in common and Wells Ranch, LLLP,whose address is 32010 CR 63, Gill, Colorado 80624 "Owner"), and Noble Energy, Inc., whose address is 1625 Broadway, Suite 2200, Denver, CO 80202 ("Noble"). RECITALS A. Owner owns approximately ro imatel 61 acres in Weld County, Colorado more particularly described on Exhibit A hereto (the "Property"). B. Owner desire s to lease to Noble, and Noble desires to lease from Owner, the Property on the terms and conditions set forth herein. AGREEMENT Section 1. Lease pe of Pro . In consideration of the rents and covenants to be paid _ and performed by Noble � and upon the terms and conditions of this Lease, Owner hereby leases to Noble and Noble hereby leases from Owner, the Property. Section Term. The term of this Lease shall commence on the date first set forth "Commencement Date") and shall expire on the last day of the calendar month first above(the occurring Ten (10) years from the Commencement Date (the "PrimaryTerm"). At the expiration of the Primary Term, Noble, or any successor in interest to Noble pursuant to the terms of this Lease, shall have the opt ion to renew and extend this Lease for two (2) additional terms of Fifty (50) years(the "Secondary upon the terms, covenants and conditions herein contained. Terms") Such right to extend shall be exercised by written notice from Noble delivered to Owner at least three months prior to the expiration of the Primary or Secondary Term. Section 3. Rent. Noble covenants and agrees to pay Owner for the Property, in of the United States, without offset, deduction or demand fixed rent (the "Base lawful money a amount of Three Hundred Dollars ($300) per acre per year during the Primary Rent ) in the ' Dollars($50) acre ear during the econdar Terms. Base Rent shall be Tenn and F� per per � due and payable on the first day of each calendar month during the Term, without offset, Base Rent for any portion of a calendar month shall be prorated based on deduction or demand. the actual number of days accruing during such month. o Use f Pro ert . Noble's use of the Property shall be limited to the Section 4. � planning, construction, _ operation, maintenance, repair and replacement of an oil, gas and water collection and treatment facility "Facility, and all related activities, in compliance with applicable laws. Section 5. Real and Personal IflTaxesairtilities. (a) From and after the Commencement Date, Noble shall pay or cause to be paid, without abatement, deduction, or offset, all real and personal property taxes, general and special assessments, and all other charges, assessments and taxes of every description, levied on or against(a)the Pro e the Facility and the improvements located thereon; (b) any assessedP'"� personal property located on the Property; and (c) the leasehold estate, to the full extent of installments assessed during the Tern. Notwithstanding anything herein to the contrary, Noble shall be toobllobligatedpay for all development and impact fees for the Facility, and all related p construction development and develo ment expenses for the Facility from and after the Commencement Date. make all such payments directly to the appropriate charging or taxing authority at Noble shall p' � fifteen(15)days before delinquency and before any fine, interest, or penalty shall become least � � . by operation of law for their nonpayment, provided Noble has received from due or be imposed Owner or otherwise all relevant documentation, assessments and notices from such taxing authorities t�.es (the "Tax Documentation") . Owner shall promptly provide the Tax Documentation to Noble upon receipt from taxing authorities. All payments of taxes or assessments or both, including permitted installment payments, shall be prorated for the initial Lease year and for the xncludin� P year in which in this Lease terminates, based on the actual number of days n each such year that are included in the Terra. Noble shall not be obligated to pay income taxes, estate taxes, 1 franchise taxes or any similar taxes imposed on Owner or based on the net income or value of the assets of Owner. (b) Noble shall pay directly to the provider of such utilities the cost of all electrical, gas, water, sewer, telephone and other utilities serving the Improvements on the Property, Section 6. Construction of Itnprovcrnents; Title to Improvements. (a) Construction. Subject to the provisions of this Lease, Noble may (I) construct on the Property buildings, structures, roads and other improvements ("Improvements") reasonably necessary for the Facility; (ii) make such additions, alterations, changes, and improvements in and to any Improvements now or hereafter on the Property as Noble may deem necessary or desirable; and iii remove, and demolish any Improvements now or hereafter constructed and erected on the Property by Noble. Noble may construct or relocate existing roads and driveways on the e only �l with the prior written approval of owner, not to be unreasonably withheld. Noble may construct fencing around the perimeter of the Property as Noble may deem necessary or appropriate ro riate to secure or enclose the same and take other security precautions if it is determined by Noble, in its sole discretion, that such fencing and/€ir security measures will reduce such risks of damage, death or injury without unduly burdening owner's use of the Property adjacent acent property Owner holds any interest to. The expense for any and all P or � Improvements authorized herein to be constructed by Noble, or other security measures taken by Noble, shall be borne solely by Noble. (b) Work. All work desired to be done by Noble on the Property shall be done at the sole cost and expense of Noble, shall be performed in a good and workmanlike manner, free of mechanics' and materialmen's liens. Noble covenants and agrees to indemnify, defend and hold Owner harmless from and against any losses or expenses, including attorneys' fees, resulting from any and all mechanics' or materialmen's liens or any other liens against the Property by any supplier for any work performed during the entire term of this Lease. (c) Title to Improvements. All Improvements placed or erected upon the Property by Noble and all personal property situated therein shall, during the term of this Lease and any extension or renewal hereof, shall vest exclusively in Noble, and Noble shall have the right in Noble's sole discretion to remove prior to the expiration or termination of the Term any such Upon _ fm rovementson the termination of this Lease for any reason, whether by expiration of the p term or otherwise, the title to the portion of any Improvements then situated on the Property and not yet removed by Noble, including roads, gravel, road base, buildings, concrete foundations, ponds and buried pipelines abandoned in place, shall, at owner's option within its sole discretion pp forthwith vest in and be the sole property of the Owner, free of any right, title, interest, claim, or demand of the Noble, or of anyone claiming through or under Noble, provided, however, that Noble shall have the right, by written notice delivered to Owner prior to the date of such termination or expiration, to reserve title in and to any tanks, separators, dehydration units and other oilfield equipment and appurtenances on the Property, which Improvements Noble shall remove in any event no later than thirty (30) days after such date of termination or expiration and for which purpose Noble shall retain a limited license to access the Property. If Noble fails to remove any such Improvements within such thirty (30 day period, title to such Improvements shall, at Owner's option within its sole discretion forthwith vest in and be the sole property of the Owner, free of any right, title, interest, claim, or demand of the Noble, or of anyone claiming through or under Noble. In the event Owner chooses not to accept title to any Improvements abandoned on the Property by Noble as described above, Noble shall, upon written notice from Owner specifying the Improvements to be removed, remove all such specified Improvements and return the Property as near as reasonably possible to the condition it was in on the date of this Agreement, including, without limitation, the grading and successful reseeding of the y� Property, provided that Noble shall be not be obligated to remove footers and foundations in the p ound beyond an 18 inch depth. Noble shall have a limited license to access the Property to l e � accomplish the foregoing, as necessary. (d) Mechanic's Liens, Noble shall keep the Property and the Improvements, at all times during the Term free of mechanics and materialmen's liens and other liens of like nature arising out of Noble's actions, and at all times shall fully protect and indemnify Owner against all such liens or claims and against all attorneys' fees and other costs and expenses growing out of or incurred by reason or on account of any such liens or claims. 2 (e) Further Assurances.. Upon the expiration or termination of the Term and Owner's exercise of rights pursuant to (c) above, Noble shall execute and deliver to Owner such instruments as Owner shall reasonably request to transfer the Improvements to Owner and to confirm Owner's ownership thereof. Section 7. Maintenance of Improvements. Noble shall, throughout the term of this Lease, at its own cost, and without any expense to Owner, keep and maintain the Property, including Improvements Im rovements and all appurtenances to the Property used by Noble, in good, sanitary and neat order, condition and repair, and, except as specifically provided in this Lease Agreement, restore and rehabilitate any Improvements of any kind that may be destroyed or damaged by fire, casualty, or any other cause whatsoever pursuant to criteria consistent with typical business practices of prudent operators of similar facilities. Owner shall not be obligated to maintain or make any repairs, replacements or renewals of any kind, nature or description, whatsoever to the Property or any Improvements. Section 8. Limitation of Liability; Indemnification. Owner shall not be liable for . death or damage topersons or property that at any time may be suffered or any loss, injury, � l� p sustained by Noble , its employees, contractors or invitees who may at any time be possessing, controlling,using,occupying or visiting the Property or Improvements or be in, on, or about the e or Improvements, p rovements, whether or not the loss, injury, death or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of Noble or of any occupant, subtenant, visitor, invitee or user of any portion of the Property or Improvements. Noble shall defend, indemnify and hold harmless Owner against any and all claims, liability, loss, expense (including, without limitation, reasonable attorney's fees and costs) whatsoever on account of any such loss, injury, death or damage. Noble waives all claims against Owner for damages to the Improvements and facility that are now on or hereafter placed or built on the Property and to the property of Noble in, on or about the Property, and for injuries to persons or property or death in or about the Property or Improvements, from any cause arising at any time. This Section 8 shall not apply to loss, injury, death, claims or damage arising by reason of the negligence or misconduct of Owner, or Owner's agents, employees, invitees or anyone else acting by, through or under Owner. Section 9. Environmental Matters. (a) Compliance with Laws. Noble shall and shall cause its agents, employees, contractors and invitees to use the Property and conduct any operations on the Property in compliance with all applicable licable Environmental Laws. As used herein, "Environmental Laws" P means, as of the Commencement Date, any federal, tribal, state, local or foreign law (including common law),statute, rule, regulation, requirement, ordinance and any writ, decree, bond, authorization, approval, license, permit, registration, binding criteria, standard, consent decree, settlement agreement, judgment, order, directive or binding policy issued by or entered into with a any national, state, local, native, or tribal government or any subdivision, agency, court, commission, department, artment, board, bureau, regulatory authority, or other division or instrumentality thereof pertaining or relating to: (1) pollution or pollution control, including storm water; (2) p g protection of human health from exposure to Hazardous Substances or protection of the environment; (3) employee safety in the workplace; or (4) the management, presence, use, generation, processing, extraction, treatment, recycling, refining, reclamation, labeling, transport, storage, collection, distribution, disposal or release or threat of release of Hazardous Substances. "Hazardous Substances" shall mean any and all hazardous or toxic substances, hazardous constituents, contaminants, wastes, pollutants or petroleum (including, without limitation, etude oil or any fraction thereof), including, without limitation, hazardous or toxic substances, pollutants and/or contaminants as such terms are defined in applicable Enviromnental Laws; asbestos or material containing asbestos; and PCBs, PCB articles, PCB containers, PCB article containers, PCB equipment, PCB transformers or PCB -contaminated electrical equipment (as such terms are defined in Part 761 of Title 40, Code of Federal Regulations), or any waste, substance, product, or other material which is otherwise regulated or restricted under any Environmental Law. (b) Normal Use. No Hazardous Substances shall be generated, treated, stored or disposed of, or otherwise deposited in or located on the Property other than the normal use of Hazardous Substances typically used by businesses engaged in the types of activities authorized by this Lease so long as such use is in full compliance with all applicable Environmental Laws. 3 (c) Survival. The obligations of Noble set forth in this Section 7 shall survive the Term or earlier termination of this lease or the exercise by Owner of any of its remedies hereunder. Section 10, Insurance. Noble shall, during the entire Term, keep in full force and effect, solely at Noble's cost and expense, all of the applicable insurance coverages set forth below: (a) A policy of commercial general liability insurance and excess liability insurance with respect to the Property and the activities of Noble thereon, for which the limits of not less F p than Two Million and no/100 Dollars ($2,000,000,00) per occurrence combined single limit bodily injury, sickness or death and loss of or damage to Property, including Owner as an additional insured but only to the extent of Noble's indemnity obligation under this Surface Lease (b) Statutory worker's compensation insurance and employer's liability insurance. (c) Automotive liability insurance covering owned, non -owned or hired vehicles affording minimum coverage of One Million and no/100 Dollars ($1,000,000.00) per occurrence combined single limit bodily injury or death and loss of or damage to property. (d) If not otherwise covered under (a) above, coverage for pollution liability with mini um limits of Two Million and no/100 Dollars ($2,000,000.00) to cover bodily injury; property damage, including natural resource damage, cleanup costs, removal and disposal, g covering both sudden and gradual pollution conditions resulting from the escape or release of petroleum or natural gas, or by products from the exploration or production of the same. Any or all of the above coverages may be satisfied by purchasing commercial insurance or through self-insurance Section 11. Casualty. If the Facility or Improvements, if any, or any portion thereof, shall be damaged or destroyed by fire, casualty or the elements, this lease shall continue in full force and effect without any abatement of or reduction in the Base Rent payable hereunder. 7 Section 12. Condemnation. In the event that all or a part of the Property is taken by eminent domain or conveyed in lieu of eminent domain, if the Property cannot reasonably be used by Noble for their intended purpose (a "Total Taking"), then this Lease will terminate effective as of the date that the condemning authority shall take possession of the same. In the event of a taking which does not prevent Noble from using the Property for their intended purposes (a Taking"), "Partial " , this Lease shall not terminate but shall continue in full force d effect without modification to Base Rent or other obligations hereunder. In the event of either a Total Taking or a Partial Taking, Owner shall beentitled to retain all portions of any condemnation award except to the extent expressly allocated to the value of the Improvements or Noble's leasehold estate, and Noble shall be free to seek such separate condemnation award for Noble's interest in the Improvements or leasehold estate as Noble deems to be appropriate. Section 13. Assignment and Subletting. Noble shall not assign (in whole or in part), or otherwise encumber this Lease, nor sublease all or any part of the Property, without Owner's prior consent, which consent shall not be unreasonably withheld or delayed. Section 14. Quiet Enjoyment. (a) Noble, upon paying the Base Rent and all other sums and charges to be paid by it under this Lease, and observing and keeping all covenants, warranties, agreements, and conditions of this Lease on its part to be kept, shall quietly have and enjoy the Property during the term of this lease, without hindrance or molestation by anyone claiming through or under Owner, subject to all liens, encumbrances, easements, restrictions and other matters of title as of the date hereof (the "Permitted Exceptions"). (b) Owner represents and warrants to Noble that it has fee simple title to the Property, free and clear of all liens, encumbrances, easements, restrictions and any other matters or defects other than the Permitted Exceptions, and the power and authority to execute and deliver this Larry and to carry out and perform all covenants to be performed by it hereunder. 4 Section 15. Defaults. (a)' _ the following events (each an "Event of Default") shall constitute defaults on the part of the Noble with respect to its obligations hereunder: (1) The failure to pay any amount due hereunder when the same shall become due, and the continuance of such failure for a period of thirty (30) days after written notice of such default has been given by Owner to Noble. (2) The failure to observe or perform any other material covenant, agreement, or obligation herein contained on the part of Noble to be observed and performed, and the continuance of such failure for a period of thirty (30) days after written notice thereof has been given by Owner to Noble or, if such failure, because of its nature, cannot be cured completely within thirty (30) days, the failure to commence the correction of such failure within such thirty (30) days or the failure to diligently prosecute the correction of such failure. (3) The filing or execution or occurrence of: (1) a petition in bankruptcy by or against Noble; (ii) a petition or answer seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution or other relief of the same or different kind under any *_ � law;(iii)rovision of the Federal Bankru tcy Code or any state bankruptcy or insolvency � P adjudication of Noble asa bankrupt or insolvent; (iv) an assignment by Noble for the benefit of creditors whether by trust, mortgage, or otherwise; (v) a petition or other proceeding by or against Noble for, or the appointment of, a trustee, receiver, guardian, conservator or liquidator of Noble with respect to all or substantially all its property; or (vi) a petition or other proceeding by or against Noble for its dissolution or liquidation, or the taking of possession of the property g of Noble by any governmental authority in connection with dissolution or liquidation. (b) Upon the occurrence or existence of an Event of Default, Owner may at any time thereafter while such Event of Default continues: (1) Subject to compliance with Section 15(b)(6), below, give a written termination notice to Noble, and upon the date specified in such notice, the Term of this Lease shall expire and terminate, and all rights o f Noble under this Lease shall cease without the P ' or on behalf of Owner, such as necessity of reentry or any other act on Owner's part. No act by entry of the Property by Owner to perform maintenance and repairs and efforts to relet the Property, other thangiving Noble written notice of termination, shall terminate this Lease. Upon any in of this Lease, Noble shall quit and surrender to Owner the Property n accordance with this Lease. If this Lease is terminated, Noble shall be and remain liable to Owner for damages as hereinafter provided and Owner shall be entitled to recover forthwith from Noble as damages an amount equal to the total of: 0) all costs, fees and expenses incurred by Owner (including reasonable attorney's fees) in regaining possession of the Property; plus cii) any and all amounts payable hereunder by Noble as of the date on winch Owner regains possession Property; plus of the Pro ert ; (iiii) all other amounts necessary to compensate Owner fully for all damage caused by Noble's default, subject to any duty of Owner under applicable law to p (iv) lusmiti ate•interest at the rate of twelve percent (12%) per annum on such items (1)— (iii) g� (the sum of items (i) — (iv) is referred to herein as the "Default Rent"). (2) Subject to compliance with Section 15(b)(6), below, without demand or notice,upon enter and repossess the Property or any part thereof, and repossess the same as of Owner's former estate and expel Noble and those claiming through or under Noble, and remove the effects of any and all such persons, by force, summary proceedings, ejectment or otherwise, without being deemed guilty of any manner of trespass or forcible entry and without prejudice to Owner's rights to recover Default Rent and damages. Owner shall be under no liability for or by reason of any such entry, repossession or removal. IfOwner elects to reenter as provided herein, or if Owner takes possession pursuant to legal proceedings or pursuant to any notice provided for by law, Owner may, from time to time, without terminating this Lease, relet the Property or any part thereof No such reentry, repossession or reletting of the Property by Owner shall be construed as an election on Owner's part to terminate this lease unless a written notice of termination is given to Noble by Owner. No such reentry, repossession or reletting of the Property shall relieve Noble of its liability and obligation under this Lease, all of which shall survive such reentry, repossession or reletting, provided that Owner's obligation at law, if any, to mitigate its losses shall remain. Upon the occurrence of such reentry or repossession, Owner shall be entitled to the amount of the monthly Default Rent, and all other sums, which would be 5 payable hereunder if such reentry or repossession had not occurred, less the net proceeds, if any, of any reletting of the Property after deducting all of Owner's expenses in connection with such p reletting. Noble shall pay such amounts to Owner on the days on which the Rent would have been payable hereunder if possession had not been retaken. (3) any time or from time to time after the repossession of the Property by Owner following an Event of Default by Noble, regardless of whether the Term of this Lease has terminated, Owner shall have the right to relet the Property or any part thereof for the account of Noble, in the name of Noble or owner, without notice to Noble, for such term or terms (which may be greater or less than the period which would otherwise have constituted the balance of the Term of this Lease) and on such conditions (which may include concessions or free rent) and for such uses as owner, in its uncontrolled discretion, may determine, with the right to make alterations and repairs to the Property, and may collect and receive the rents therefor. In no event shall Noble be entitled to receive the excess, if any, of net rent collected by Owner as a result of such reletting over the sums payable by Noble to Owner hereunder, (4) Subject to compliance with Section 15(b)(6), below, in the event of any termination of this Lease by its terms or by operation of law or any repossession of the Property pursuant to the terms of this Lease, Noble, so far as permitted by law, waives (i) any notice of reentry or of the institution of legal proceedings to that end, (ii) any right of redemption, re-entry or repossession, and (iii) the benefits of any laws now or hereafter in force exempting property from execution for rent or for debt. (5) Owner's exercise of any or all of the remedies set forth in this Section shall not in any way restrict Owner's right to exercise any or all available remedies at law and in equity (6) Notwithstanding anything to the foregoing in this Section 15(b), Owner and Noble acknowledge that Noble intends to invest substantial capital and time in the Improvements and operations on the Property and, as a result, termination of this Lease, or repossession by Owner of the Property may result in a substantial hardship to Noble. prior rior to any termination of this Lease by Owner or repossession by Owner of the Property,owner and Noble agree first to try in good faith to settle the dispute by mediation. The parties mediation expert shall use a t reasonably acceptable to both sides and shall convene the mediation at a location mutually acceptable to the parties in the State of Colorado. The costs of mediation shall be borne equally by the parties. In the event the parties are unable to resolve the dispute by mediation through the exercise of good faith efforts by the date that is thirty (30) days p from the occurrence of the Event of Default, then Owner shall be entitled to pursue the remedies set forth in this Section 15(b), and Owner shall be entitled in the pursuit of such remedies to recover the costs of mediation incurred by Owner hereunder. Section 16. Waivers. Failure of Owner or Noble to complain of any act or omission on the part of the other party, no matter how long the same may continue, shall not be deemed to be a waiver by said party of any of its rights hereunder. No waiver by Owner or Noble at any time express or implied, of any breach of any provision of this Lease shall be deemed a waiver 7 of a breach of any other provisions of this Lease or a consent to any subsequent breach of the same or any other provision. rovision. To acceptance by Owner of any partial payment shall constitute an accord or satisfaction but shall only be deemed a part payment on account. Section 17. Force Majeure. In the event that Owner or Noble shall be delayed in, hindered in or prevented from the performance of, any act required hereunder by reason of 3 strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason beyond their control, then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. Section 18. Notice. Every notice, approval, consent or other communication authorized or required by this Lease shall not be effective unless same shall be in writing and pe rsonally delivered or sent postage prepaid by United States registered or certified mail, return receipt requested, addressed to the other party as follows: As to Owner: Wells Ranch, LLLP Steven T. and Teresa L. Wells 6 32010 WCR 63 Gill, CO 80624 Telephone: 970-356-4671 As to Noble: Noble Energy, Inc. 1625 Broadway, Suite 2200 Denver, CO 80202 Phone: 303-228-4062 Attn: Wattenberg Land Manager Either party to this Lease may from time to time change its address for receipt of notice and other communications by giving notice to the other party in writing and in accordance with the procedure set forth above in this Section, Certificates. Eithershall without charge at any time and from time to time, Section 19. party within thirty (30) days after request written re uest of the other, certify by written instrument duly executed and acknowledged mortgagee to any purchaser, or proposed mortgagee or proposed purchaser, or any � � or other person, firm or corporation p specified in such request: (i) whether this Lease has been supplemented or amended and if so the substance of the supplement or amendment; (ii) whether the Lease is in full force and effect; (iii)ether an default exists under this Lease; (iv) whether any offsets, counterclaims whether defenses 5ses exist-(v)the commencement and expiration dates of the Term; and (vi) with respect to any or other matters reasonably requested. Any certificate may be relied upon by the party requesting and receiving it. Section 20. Governing Later, The terms and conditions of this Lease shall be governed, interpreted, constructed, regulated and enforced by the laws of the State of Colorado. Secti on 21. Partial Invalidity. If any term, covenant, condition or provisions of this Lease or to any person or circumstance shall at any time or to any extent be invalid or the application thereof =enforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances other than tho se to which it is held invalid or unenforceable shall not be affected and each term, covenant, condition and d provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. Section 22. Entire Agreement. eement. No oral statement or prior written matter shall have any force agrees that it i s not relying on any representations or agreements other than those or effect, noble g contained in this Lease. Section 23. Parties. Except as herein otherwise expressly provided the covenants, conditions p and agreements contained in this Lease shall bind and inure to the benefit of Owner, Noble and their respective successors, administrators, heirs and assigns. Section 24. Recording. Upon the mutual execution and delivery of this Lease, Noble shall _ have the right to record a Memorandum of this Lease in the Clerk and Recorder's Office of Weld County, Colorado. ' � Voluntary Termination Right. Notwithstanding anything to the contrary in this Section T n 2� . a � � Lease, Noble shall have the right at any time to terminate this Lease upon not less than six (6) s1 onths prior written notice and payment a ent of six months of Base Rent, whether in the Primary or Secondary Term, to Owner. Upon the date of termination specified in such written notice from Noble, this Lease parties terminate and the shall have no further rights or obligations hereunder, except as expressly survive expiration or termination hereof, [signatures appear on next page] IN WITNESS S WHEREOF, the parties hereto have hereunder set their hands as of the day and year first -above written. OWNER: \\) -%1—: Steven T. Wells lu Teresa L. Wells Wells Ranch, LLLP By: 11/4,k3J Steven T. Wells Title: General Partner NOBLE: Noble Energy, Inc_, a Delaware Corp tien B. Name: Josep Its: Aft. y .�, r. 1120 I f. — Fact ti • 8 STATE OF COLORADO ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this L day of May, 2012, by Steven Ti* Wells. Witness my hand and official seal. f My commission expires: V f ii3s'1 drz7t-41, ' c 4a 4� \c • a CI Fr + 1ra J' a p,.% } ' } s a a 'kL; to Ca (SWE) 7 /1 s t •4ti t 4- � 11� v+V 11l�V r Notary Public STATE OF COLORADO ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this tKday of May, 2012, by Teresa L. Wells_ Witness my hand and official seal. My commission expires: i-_.•e r4+ ti{ aa subi 6 4 C tS3 4)470 8f 3 ,., `.� ' 4ti sue." (SEAL) ��� .:_seoRPM013 STATE OF Ci , O I Q04,441fe y , )ss. COUNTY OF WELD c)-1/St i)to 13 Notary Public The foregoing instrument was acknowledged before me this (,� day of May, 2012, by Steven T. Wells, as General Partner of Wells Ranch, LLLP. Witness my hand and official seal. My commission expires:. _ (SEAL) a ! it ' .r {~T' I i r s. &J. tsce--,4Q- spat 40 /kr- :, ...I a 4.091 • r 1y ~ i ti4J OR 11 �t N)0 Notary Public 9 STATE OF COLORADO ) ss. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this le day of May 012, by Joseph H. Lorenzo as Attorney — In — Fact of Noble Energy, Inc. Witness my hand and official seal. My commission expires: _ ti 1O6 (SEAL) 1/4 Se%1S.SS*Cfle, rolls a et ce 1113 iii4 -%. • . o r +.. t ir e . t a • ti• . .. t cri c, O;k-a ...... •Veage 43/ COL OCkt*; -43/14/1/11 '111;100;r ExPires r averi • ryr t Notary Public 10 EXHIBIT LEGAL DESCRIPTION OF PROPERTY Township 6 North, Range 63 West, 6th P.M. Section 21: Lot A of Recorded Exemption RE -2676 Parcel # 079921100016 (+1- 5.179 acres) Township 6 North, Range 63 West. 6th P.M. Section 21: Lot B of Recorded Exemption RE -2676 Parcel # 079921 100017 (+1- 20.996 acres) Townshi 6 North Flan c 63 West 6th P.M. Section 22: NWNW Pt of Parcel # 079922200014 (+1- 34.9 acres) July 26, 2019 Petitioner: WELLS RANCH 32010 COUNTY ROAD 63 GILL, CO 80624-9314 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.weldgov.com 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO NOTIFICATION OF HEARING SCHEDULED Docket 2019-3157, AS0103 Appeal 2008224806 Hearing 8/1/2019 1:30 PM Account(s) Appealed: R1174186 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 1, 2019, at or about the hour of 1:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2019, and mailed to you within five (5) business days. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to discuss your value with the Assessor's Office, please call them at (970) 400-3650. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request to assessor@weldgov.com. Upon receipt ofyourwritten request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Danes, Assessor Hello