HomeMy WebLinkAbout20170854.tiffRESOLUTION
RE: APPROVE MINING LEASE FOR HOKESTRA PROPERTY AND AUTHORIZE CHAIR
TO SIGN - CENTRAL COLORADO WATER CONSERVANCY DISTRICT
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 a Mining Lease for the Hokestra Property
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and the Central Colorado Water Conservancy District,
commencing upon full execution of signatures, with further terms and conditions being as stated
in said lease, and
WHEREAS, after review, the Board deems it advisable to approve said lease, 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 Mining Lease for the Hokestra Property between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and the
Central Colorado Water Conservancy District be and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said lease.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 27th day of March, A.D., 2017.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: ddrif.84) G:..0'‘.i.
Weld County Clerk to the Board
BY:
AP
Coun y Attorney
Julie A. Cbzad, Chair
'Barbara Kirkyer
Date of signature: (-4(12%/ 11
0,C Ca.00(),
F=/GZCT C Ow '21
cx-tir3/(-7
Steve Moreno, Pro -Tern
2017-0854
EG0074
EXHIBIT C
MINING LEASE FOR HOEKSTRA PROPERTY FOR SAND. GRAVEL AND AGGREGATE
THIS LEASE made tha(% day of 4711-44442017 between GROUND WATER
MANAGEMENT SUBDISTRICT OF THE CENTRAL COLORADO WATER
CONSERVANCY DISTRICT BY AND THROUGH ITS WATER ACTIVITY
ENTERPRISE, hereinafter referred to as "CENTRAL," and BOARD OF COUNTY
COMMISSIONERS OF WELD COUNTY, COLORADO, a body corporate and politic
operating pursuant to the laws of the State of Colorado and the Weld County Home
Rule Charter, doing business at 1150 O Street, City of Greeley, County of Weld, State of
Colorado, hereinafter referred to as "COUNTY."
Whe eas, the parties have entered into a PURCHASE AND SALE AGREEMENT dated
otAt✓� , 2017 ("PURCHASE AND SALE AGREEMENT"), pertaining to
two real properties located in Section 2, Township 2 North, Range 68 West of the 6th P.M. in
Weld County, Colorado, and Section 35, Township 3 North, Range 68 West of the 6th P.M. in
Weld County, Colorado (the "Properties"); and
Whereas, COUNTY is in the process of mining sand, gravel and aggregate from a site located on
the Properties known as "the Hoekstra Pit"; and
Whereas, pursuant to the terms of the PURCHASE AND SALE AGREEMENT, CENTRAL
hereby leases to COUNTY the Properties, for the purposes of mining, removing, processing,
storing, and marketing therefrom all sand, gravel, and aggregate, all of which are herein referred
to as materials, and reclamation of the mined areas.
1. TERM OF LEASE — This Lease shall run from the date shown above until completion of
mining, reclamation, and release of the mining permit M-1980-149 by the Division of
Reclamation, Mining and Safety ("DRMS"), by the COUNTY in accordance with the
schedule shown in the following table:
Hoekstra Mining
Schedule
Cell ID
Proposed
Volume (ac -ft)
Complete
Mining
Complete Slope
Reclamation/Cell
Available for
Water Storage
Complete Vegetation
Reclamation
Proposed DRMS
Release
2
405.80
Done
Done
Done
12/31/2021
3
130.23
12/31/2035
3/31/2036
6/30/2036
12/31/2041
4
210.12
12/31/2026
3/31/2027
6/30/2027
12/31/2032
5
337.34 total cells
5and6
12/31/2018
2/28/2019
6/30/2019
12/31/2024
6
337.34 total cells
5 and 6
12/31/2018
2/28/2019
6/30/2019
12/31/2024
2017-0854
Mining Lease
Page 2
COUNTY agrees that it will complete mining and reclamation of the Hokestra Pit, so that
a minimum 1083.49 acre foot space is available for storage of water by CENTRAL, no
later than March 31, 2036. If COUNTY does not excavate the pit and complete slope
reclamation by March 31, 2036, CENTRAL shall have the right to pursue any remedies
available to it by law to enforce the terms of this agreement and the PURCHASE AND
SALE AGREEMENT, and CENTRAL shall have all right, title and interest in and to the
sand, gravel and aggregate on the Properties. Nothing in this Lease shall be interpreted to
preclude COUNTY from excavating in excess of 1083.49 acre feet within the term of the
Lease.
2. CONSIDERATION - Consideration for this Lease in hand paid is hereby acknowledged in the
form of the mutual obligations contained in the PURCHASE AND SALE AGREEMENT.
3. SURFACE RIGHTS OF COUNTY - COUNTY may clear brush, trees, undergrowth, fences
internal to the property, corrals, and other improvements, as may be reasonably necessary to
explore for materials or to locate pits and stockpile in processing areas and in order to obtain
access to these premises, and to carry on its operations hereunder. COUNTY shall have the
unrestricted right to access the Properties and the Hokestra Pit for purposes of mining and
reclamation activities during the term of this Lease. COUNTY shall have the right to make use
of all roadways presently existing on the leased premises, and shall have the further right to build
such additional roads as may be necessary for the production and removal of materials
hereunder. In building such roads, COUNTY may use materials from the leased area, and shall
not be required to pay any royalties for materials so used. COUNTY may maintain and operate
rock crushing and screening equipment on the leased premises, if it should so desire, to process
materials thereon. This right shall not include the right to operate or maintain any concrete or
asphalt batch plant on the premises. COUNTY may, subject to the provisions contained herein,
also erect such buildings and install such machinery and equipment as may be useful in
connection with its operations hereunder.
5. COUNTY agrees to maintain slurry wall liners which meet the State Engineer's standards
contained in the "State Engineer Guidelines for Lining Criteria for Gravel Pits August 1999" in
the areas as identified on Figure 1 and excavate sufficient material within said slurry walls to
create a minimum storage capacity of 1083.49 acre feet upon completion. COUNTY agrees it
will use its best efforts to mine all the gravel that is economically feasible to mine so as to
maximize the storage capacity.
6. CENTRAL may use each cell for storage of water upon completion of mining and slope
reclamation for that cell. The parties agree that dewatering shall be done at a time and in a
manner so as to maximize the beneficial use of CENTRAL's water stored in the pit. If mining
ceases and CENTRAL uses the pit for storage, COUNTY shall give CENTRAL 90 days written
notice of intent to resume mining so CENTRAL can evacuate its stored water and make
beneficial use of the same. COUNTY and CENTRAL will coordinate and use best efforts during
mining of Cell 3 so as to prevent interference with CENTRAL's use of Cells 5 and 6 for water
Mining Lease
Page 3
storage. In the event of substantial water leakage into Cell 3, the parties will coordinate water
storage and mining activities and use best efforts to minimize the water inflow.
7. PERMITS -COUNTY shall be responsible for maintaining all necessary State, County, and
Federal permits for the operation on the subject premises at its own expense. COUNTY shall
exercise reasonable diligence in maintaining all necessary permits. The operation on the
premises shall be conducted in compliance with those permits as may be determined by the
agency legally responsible for enforcing those permits. COUNTY agrees to obtain amendments
to permits as needed in order for CENTRAL to construct water conveyance facilities on the
subject premises. CENTRAL agrees to cooperate with COUNTY, and not to interfere with the
COUNTY'S compliance with said permits and to execute any necessary documents to assist
COUNTY in maintaining the necessary permits.
8. PROTECTION AND RESTORATION OF SURFACE - COUNTY will be responsible for
restoring the premises in accordance with a reclamation plan approved by the Colorado Mined
Land Reclamation Board. COUNTY'S reclamation shall not damage the slurry wall liners or
otherwise diminish or impair the water storage being created on the premises.
9. REMOVAL OF IMPROVEMENTS AND EQUIPMENT - All improvements and equipment
placed on the leased premises by COUNTY, except access roads, haul road, fences and gates,
shall remain the property of COUNTY and COUNTY shall have the right to remove such
property prior to the expiration of this Lease.
10. INDEMNIFICATION — COUNTY shall indemnify and hold harmless CENTRAL and its
agents from any and all claims, suits, expenses, damages or other liabilities, including reasonable
attorney fees and court costs arising out of damage or injury to persons, entities or property
caused or sustained by any person or persons as a result of any intentional or negligent act by
COUNTY in conducting the mining and reclamation operations at the Hoekstra Pit during the
term of this Lease. COUNTY shall procure and maintain comprehensive public liability
insurance providing coverage from any and all loss occasioned by an accident or casualty on the
Properties. Said liability policy shall be written on an "occurrence basis" with limits of not less
than $1,000,000 bodily injury liability coverage and $600,000 property damage liability
coverage naming CENTRAL as the insured. CENTRAL shall indemnify and hold harmless
COUNTY and its agents from any and all claims, suits, expenses, damages or other liabilities,
including reasonable attorney fees and court costs arising out of damage or injury to persons,
entities or property caused or sustained by any person or persons as a result of any intentional or
negligent act by CENTRAL in conducting the water storage operation at the Hoekstra Pit during
the term of this Lease.
11. FENCING - COUNTY shall maintain the existing perimeter fence around the Properties in
good repair during the term of this Lease.
12. USE OF SURFACE BY CENTRAL - CENTRAL may use the surface of the premises during
the term of the Lease for the purpose of installation, operation, security and maintenance of the
storage reservoir. No recreational use shall be allowed on the Properties during the term of this
Lease Central agrees that its inspections of the property shall not interfere with the mining
Mining Lease
Page 4
operations or create a safety hazard for the COUNTY or its agents or employees. This shall not
preclude CENTRAL from inspecting the premises to determine compliance with this Lease
provided such inspections do not interfere with the operations or create a safety hazard for
COUNTY or its agents or employees.
13. SURRENDER -COUNTY shall have the right to surrender this Lease at any point to
CENTRAL upon written notice provided that all restoration has been completed in accordance
with the Mined Land Reclamation Permit. Provided, further, that should the COUNTY have not
excavated the reservoirs to 1083.49 acre-feet by March 31, 2036, CENTRAL shall have the
rights set forth in paragraph 1 herein.
14. NO WAIVER OF IMMUNITY- No portion of this Agreement shall be deemed to constitute
a waiver of any immunities the parties or their officers or employees may possess, nor shall any
portion of this Agreement be deemed to have created a duty of care which did not previously
exist with respect to any person not a party to this Agreement.
15. NO THIRD PARTY BENEFICIARY ENFORCEMENT- 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.
16. NOTICE - Any notice required or permitted to be given under this Agreement shall be in
writing and shall be deemed given and effective when delivered by electronic mail, Express
Mail, Federal Express, or like service, or on the third mail delivery day after it is deposited in the
United States mail, postage prepaid by certified or registered mail, return receipt requested,
addressed to the parties as follows:
If to Buyer: Ground Water Management Subdistrict of the Central Colorado Water
Conservancy District
3209 W. 28th Street
Greeley, CO 80634
If to Seller:
Board of County Commissioners of the County of Weld
P.O. Box 758
1150 O Street
Greeley, CO 80632
17. Reservation of Other Minerals to CENTRAL - This Lease pertains only to the removal
of sand, gravel, and aggregate. All other minerals located on the property are reserved
unto CENTRAL.
Mining Lease
Page 5
18. Waiver of Trespass and Nuisance Claims_ CENTRAL recognizes that the operations
contemplated by the Lease may, even when conducted in accordance with regulatory
requirements, cause interference with adjacent land uses. CENTRAL hereby waives
any tort including trespass and nuisance claims based upon such interference but, in so
doing, expressly reserves any cause based upon this Lease and the right to seek
administrative remedies from the agencies responsible for regulating such operations.
Notwithstanding the preceding, CENTRAL does not waive any trespass or nuisance
claim based upon the willful and wanton or grossly negligent acts of the COUNTY or
its employees.
19. VENUE - Venue for any dispute arising under this Lease shall be proper in and for the
District Court in and for the County of Weld, State of Colorado, 19th Judicial District.
20. ASSIGNMENT - This Lease is intended to be binding on the heirs, assigns and
successors in interest to the parties hereto.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date
set forth above:
ATTEST: C/ SC ;e1 COUNTY OF WELD, a political
subdivision of the State of Colorado
Weld County Clerk to the Board
De.uty Clerk to the Board
STATE OF COLORADO
COUNTY OF WELD
Board of County Commissioners
of of the County of Weld
Acknowledged before me thisa7 day 2017, by
Julie A. Cozad. Chair, Board of County Commissioners of the County of
Weld.
WITNESS my hand and official seal.
My Commission Expires: 1OZ// 9/020/0.
CHERYL LYNN HOFFMAN
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20144048044
MY COMMISSION EXPIRES DEC. 19, 2018
ao,7-- cast
Mining Lease
Page 6
GROUNDWATER MANAGEMENT
SUBDISTRICT OF THE CENTRAL
COLORADO WATER CONSERVANCY
DISTRICT BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE
By:
Title.
STATE OF COLORADO
COUNTY OF WELD
/Lersossi-C-44.
Acknowled ed before me this a, day of°724p(-41, , 2017, by
as t -,,a ( q for the Central Colorado Water Conservancy District and
Groundwater Management Subdistrict of the Central Colorado Water Conservancy District.
WITNESS my hand and official seal.
My Commission Expires: 4 ( f 3
TAMMY l RUSt
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 2034030345
MAY 13, 2021
MY COMMISSION EA
RE: MINING LEASE FOR HOKESTRA PROPERTY FOR SAND, GRAVEL AND
AGGREGATE
APPROVED AS TO SUBSTANCE:
Elected Official or Department Head
Director of General Services
APPROVED AS TO FUNDING:
r
1�D�Q
Con roller
Esther Gesick
From:
Sent:
To:
Cc:
Subject:
Chloe and Devin,
Esther Gesick
Monday, January 15, 2018 4:46 PM
Chloe Rempel; Bruce Barker
Cheryl Hoffman; Devin Traff; Chris D'Ovidio; Esther Gesick
RE: Transfer of Lupton Meadows Ditch Stock Certificates
1) Bruce can correct me if I don't quite accurately capture this, but he and I just spoke and he indicated we do not
need to have items #2017-0052 thru #2017-0586 recorded (which included the original documents with Central
Colorado Water Conservancy District for the Purchase and Sale Agreement, Assignment of Water Shares, Mining
Lease, ROW Operations Agreement, and Water Storage Agreement all dated 3/27/2017). Please proceed with
finalizing distribution and filing.
2) Similarly the related Stock Assignment (#2017-3870, dated 11/13/17) does not need to be recorded. He also
indicated that we may go ahead and release the original Stock Certificates that we have in our possession (No.
0475 = 18 shares; No. 0624 = 8 shares; and No. 0631 = 26 shares) to Devin to come and pick up, and Bruce is
working on providing an Indemnification from the County for the 0.25 Share from the Slavic property, which will
be the final piece to satisfy the obligations under the Bearson Court Decree and the resulting agreement
between the County and Central.
3) On a separate item of business, but somewhat related is document #2017-1058, dated 4/17/2017, for the Four
(4) Petitions for Class C Irrigation and Non -Irrigation Water Allotment Contracts with Central — please contact
Lynn Kramer to see if the last two Contracts No. 1177 and No. 1178 have been signed. If so, we need to have
the originals returned so we can have them recorded (perhaps not because it is required, but because the other
two No. 1174 and 1175 were already recorded and we should stay consistent within this same document).
4) Accounting is copied on this message and is cleared to go ahead and make the necessary Banner entries and
payments.
Thanks!
Esther E. Gesick
Clerk to the Board
1150 O Street P.O. Box 7581 Greeley, CO 80632
tel: (970) 400-4226
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed
and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please
immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents
of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: Chloe Rempel
Sent: Monday, November 13, 2017 11:22 AM
1
To: Bruce Barker <bbarker@weldgov.com>
Cc: Cheryl Hoffman <choffman@weldgov.com>; Esther Gesick <egesick@weldgov.com>; Devin Traff
<dtraff@weldgov.com>
Subject: Transfer of Lupton Meadows Ditch Stock Certificates
Bruce,
Attached are the items we discussed this morning. I am hoping to close out 2017-0853 pending revisions
regarding the Class C Contract and recording. If you would like that document recorded, then I believe I will
also need to record 2017-3870. Esther will create new certificates once we have the go ahead from you.
2017-0853: Pending decision on Class C Contract and recording
2017-3870: 11/13 Consent Agenda
Thank you!
Chloe A. Rempel
Deputy Clerk to the Board
Weld County
1150 O Street
Greeley, CO 80631
tel: 970-400-4225
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise
protected from disclosure. If you have received this communication in error, please immediately notify sender by return
e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
2
% O t +e-\ l tc)
rL) c.e, or, q r a5 / 1 i
Chloe Rem pel
From:
Sent:
To:
Cc:
Subject:
Bruce Barker
Friday, April 14, 2017 9:38 AM
Chloe Rempel; Don Warden; Barb Connolly
Esther Gesick; Cheryl Hoffman
RE: FINAL RESOS - 5 Agreements
Not yet. I need to finalize some things on them regarding th
Bruce T. Barker, Esq.
Weld County Attorney
P.O. Box 758
1150 "O" Street
Greeley, CO 80632
(970) 356-4000, Ext. 4390
Fax: (970) 352-0242
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is attorney privileged and confidential, or
otherwise protected from disclosure. If you have received this communication in error, please immediately notify
sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action
concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly
prohibited.
From: Chloe Rempel
Sent: Friday, April 14, 2017 9:15 AM
To: Bruce Barker <bbarker@co.weld.co.us>; Don Warden <dwarden@co.weld.co.us>; Barb Connolly
<bconnolly@co.weld.co.us>
Cc: Esther Gesick <egesick@co.weld.co.us>; Cheryl Hoffman <choffman@CO.WELD.CO.US>
Subject: RE: FINAL RESOS - 5 Agreements
Bruce,
None of the five documents have been recorded, per your conversation with Esther and Cheryl. The
documents have been finalized as they appear in the above attachments. Would you like me to have them
recorded?
Chloe A. Rempel
Deputy Clerk to the Board
Weld County
1150 O Street
Greeley, CO 80631
tel: 970-400-4225
o - /7- D�'•�
. /t /7-054
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise
protected from disclosure. If you have received this communication in error, please immediately notify sender by return
e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
From: Bruce Barker
Sent: Friday, April 14, 2017 8:33 AM
To: Chloe Rempel <crempel@co.weld.co.us>; Don Warden <dwarden@co.weld.co.us>; Barb Connolly
<bconnollv@co.weld.co.us>
Subject: RE: FINAL RESOS - 5 Agreements
Have these been sent to recording? We need to double-check to see they have all of their attachments.
Bruce T. Barker, Esq.
Weld County Attorney
P.O. Box 758
1150 "O" Street
Greeley, CO 80632
(970) 356-4000, Ext. 4390
Fax: (970) 352-0242
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is attorney privileged and confidential, or
otherwise protected from disclosure. If you have received this communication in error, please immediately notify
sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action
concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly
prohibited.
From: Chloe Rempel
Sent: Thursday, April 13, 2017 9:36 AM
To: Bruce Barker <bbarker@co.weld.co.us>; Don Warden <dwarden@co.weld.co.us>; Barb Connolly
<bconnolly@co.weld.co.us>
Subject: FINAL RESOS - 5 Agreements
Hello,
Attached are the final resolutions signed by the Board of County Commissioners. Please forward as necessary.
2017-0852: Purchase and Sale Agreement for Hokestra Pit — Central Colorado Water Conservancy District
2
I
2017-0853: Agreement for Assignment of Water Shares — Central Colorado Water Conservancy District
2017-0854: Mining Lease for Hokestra Property —Central Colorado Water Conservancy District
2017-0855: Right -of -Way Operations Agreement for Hokestra Pit Central Colorado Water Conservancy District
2017-0856: Agreement for Use of Water Stored in Koenig Reservoir — Central Colorado Water Conservancy
District
Sincere regards,
Chloe A. Rempel
Deputy Clerk to the Board
Weld County
1150 O Street
Greeley, CO 80631
tel: 970-400-4225
Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise
protected from disclosure. If you have received this communication in error, please immediately notify sender by return
e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited.
3
Hello