HomeMy WebLinkAbout20161276.tiffBOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW/ WORK SESSION REQUEST
RE: Temporary License for PDC to run a water pipeline over County Property.
DEPARTMENT: County Attorney
PERSON REQUESTING: Assistant County Attorney Frank Haug
DATE: 2/16/17
Brief description of the problem/issue:
PDC Energy approached the County about extending this agreement which allows for them using some property
the county owns near the confluence of the Poudre and South Platte for a temporary water pipeline. See attached
letter. The structure of the agreement is a revocable license. We can terminate it at any time, for any reason.
They are responsible for obtaining all other legal permissions and permits, including access, water rights,
environmental permissions, and for accepting liability for any issues that arise due to the pumping of the water.
They are responsible to not harm our land, are not allowed to modify the land, and must fix any damage at their
own cost. They are to only transport fresh water, no spent water.
COMPENSATION: PDC would pay five hundred dollars ($500.00).
What options exist for the Board? (Include consequences, impacts, costs, etc. of options)
1. Extend the license agreement as written or as modified by the board.
2. Terminate the license agreement.
Recommendation:
No particular recommendation.
Approve
Recommendation
Sean P. Conway
Julie A. Cozad, Chair
Mike Freeman
Barbara Kirkmeyer
Steve Moreno, Pro-Tem')
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Schedule
Work Session
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Other/Comments:
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CONTRACT AGREEMENT EXTENSION/RENEWAL BETWEEN
THE WELD COUNTY ATTORNEY'S OFFICE,
AND_ PDC ENERGY, INC.
This Agreement Extension/Renewal ("Renewal"), made and entered into 10th day of March 2017 by and between the
Board of Weld County Commissioners, and PDC Energy hereinafter referred to as the "Contractor".
WHEREAS the parties entered into an agreement (the "Original Agreement") identified by the Weld County Clerk to the
Board of County Commissioners as document No. 20161276 approved on April 13, 2016.
WHEREAS the parties hereby agree to extend the term of the Original Agreement in accordance with the terms of the
Original Agreement, which is incorporated by reference herein, as well as the terms provided herein.
NOW THEREFORE, in consideration of the premises, the parties hereto covenant and agree as follows:
• The Original Agreement will end on April 13, 2017.
• The parties agree to extend the Original Agreement for an additional 12 month period, which will begin April 13. 2017 and
will end on April 13, 2018.
• The Renewal, together with the Original Agreement, constitutes the entire understanding between the parties. All other
terms and conditions of the Original Agreement remain unchanged.
IN WITNESS WHEREOF, the parties hereto have duly executed the Agreement as of the day, month, and year first above written.
COMPANY:
O.F. Baldwin II
Printed Name
ATTEST:
Weld C
BY:
APPR
Controller
Deputy Cler
AS TO FUN jUNG:_
APPROVED TO FORM:
ounty Attorney
BOARD OF COUNTY COMMISSIONERS
WE OU TV, COLORADO
Julie Cozad, Chair
APPROVED AS TO SUBSTANCE:
Elected
rector of General Services
2 2017
G)
PDC
ENERGY
District Office
4000 Burlington Ave
Evans, CO 80620
970-506-9272
www.pdce.com
February 15, 2017
Weld County Commissioner
Attn: Weld County Attorney's Office
1150 O Street
PO Box 758
Greeley, Colorado 80632
RE: Request to Renew License Agreement for Use of Weld County Property for Purposes of
Temporary Water Pipeline
Township 5 North, Range 64 West of the 6th P.M.
Section 6
Parcel: 096306300023
Weld County, Colorado
To Whom it May Concern,
In accordance with that certain License Agreement for Use of Weld County Property for Purposes of
Temporary Water Pipeline ("Agreement") dated and effective April 13, 2016, PDC Energy Inc.
("Company") hereby requests to renew said Agreement for an additional twelve (12) months. Upon
approval from Weld County, the Agreement will be effective as of April 13, 2017 and shall remain in full
force and effect until April 13, 2018.
This Agreement provides water for completions operations to six different PDC drill pads and significantly
reduces our truck traffic during completions operations. One of these sites is unable to begin drilling until
May 24, putting completions toward the late fall or early winter months of 2017. PDC would prefer to
renew the Agreement in order to complete this site without added strain to local traffic.
Per Paragraphs 2 of the Agreement, Company will provide Owner with compensation of $500.00 as
required. Enclosed, please find a copy of the Agreement along with a check from Company totaling
$500.00.
Respectfully,
Barney Hammond
Senior Surface Landman
PDC Energy, Inc.
4000 Burlinton Ave
Evans, CO 80620
Office: (970) 506-9272
Cell: (970) 371-4190
**ACKNOWLEDGEMENT OF PAYMENT**
Payment is hereby acknowledged by the undersigned parties as consideration for that
certain Contract Agreement Extension/Renewal dated April 13, 2017 covering the
following lands:
Township 5 North, Range 64 West, of the 6th P.M.
Section 6
Tax Parcel Number: 096306300023
Weld County, CO
PAY TO
THE
ORDER
OF
PDC Energy Check No. 00262799 received this. 2nd day of
Weld County Colorado
By:
Name: Barbara J/Connolly
Controller
March ,2017.
WARNING: DO NOT ACCEPT THIS DOCUMENT UNLESS YOU CAN SEE AN ARTIFICIAL WATERMARK ON THE REVERSE SIDE.
PDC Energy JPMorgan Chase Bank, N.A. CHECK NO.
Columbus. OH
P.O. BOX 26
56-1544/441
BRIDGEPORT, WV 26330
�YEj5�doLS00cts
Five Hundred Dollars Only
Weld County Colorado
PO Box 758
Greeley, CO 80632
c�
rr
00262799
VOID AFTER 180 DAYS
DATE
AMOUNT
Feb -28-2017
"3500.00*
•gq Acco o . gtivin-- G9 �A Accou ing Operations
President
RESOLUTION
RE: APPROVE AGREEMENT FOR USE OF WELD COUNTY PROPERTY FOR PURPOSES
OF TEMPORARY WATER PIPELINE AND AUTHORIZE CHAIR TO SIGN -
PDC ENERGY, INC.
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Agreement for Use of Weld County
Property for Purposes of Temporary Water Pipeline between the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, and PDC Energy,
Inc., commencing upon full execution of signatures and ending April 13, 2017, with further terms
and conditions being as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy
of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Agreement for Use of Weld County Property for Purposes of
Temporary Water Pipeline between the County of Weld, State of Colorado, by and through the
Board of County Commissioners of Weld County, and PDC Energy, Inc., be and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 13th day of April, A.D., 2016.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: .K,ldo;c r ;e2
Mike Freeman, Chair
Weld County Clerk to, he Board
oun y t orney
Date of signature: e
teve Moreno
Cc: C4(FR)
5-) 8-ae
2016-1276
CA0015
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW/ WORK SESSION REQUEST
RE: Temporary License for PDC to run a water pipeline over County Property.
DEPARTMENT: County Attorney
PERSON REQUESTING: Assistant County Attorney Frank Ilaug
Brief description of the problem/issue:
DATE: 3/28/16
PDC Energy approached the County about using some property the county owns near the confluence of the Poudre
and South Platte for a temporary water pipeline. A picture of the property is attached. In speaking with Public
Works, as well as Planning, neither Tom nor Jay had an issue with this, as it does not cross any rights of way, or
otherwise involve a land use issue. The structure of the agreement is a revocable license. We can terminate it at
any time, for any reason. They are responsible for obtaining all other legal permissions and permits, including
access, water rights, environmental permissions, and for accepting liability for any issues that arise due to the
pumping of the water. They are responsible to not harm our land, are not allowed to modify the land, and must
fix any damage at their own cost. They are to only transport fresh water, no spent water. The initial term is for
12 months, it is non-exclusive, and we can continue to use the property (although we don't use it for anything).
COMPENSATION: PDC would pay an amount equal to one dollar (s) per foot ($1.00) per year as full
consideration for the License and the rights granted to Company herein. And five hundred dollars ($500.00) for
the temporary pump site.
What options exist for the Board? (Include consequences, impacts, costs, etc. of options)
1. Approve the license agreement as written or as modified by the board.
2. Not approve the license agreement.
Recommendation:
No particular recommendation.
Approve
Recommendation
Mike Freeman, Chair
Sean P. Conway
Julie A. Cozad
Barbara Kirkmeyer
Steve Moreno
Schedule
Work Session
Other/Comments:
2016-1276
LICENSE AGREEMENT FOR USE OF WELD COUNTY PROPERTY FOR PURPOSES OF
TEMPORARY WATER PIPELINE
THIS LICENSE AGREEMENT, made and entered into /8 Td' day of
, A.D., 2016, by and between Weld County, Colorado, by and through the
Boardof County Commissioners of Weld County, whose address is 1150 O Street, Greeley,
Colorado 80631, ("County"), and PDC Energy, Inc., a Delaware Corporation ("Company"),
whose address is 1775 Sherman Street, Suite 3000, Denver, CO 80203 (individually a "Party,"
together "the Parties") with respect to the following described lands (the "Property"): Parcel
096306300023, adjoining the South Platte River, at Section: 6 Township: 5N Range: 64W.
WITNESSETH:
WHEREAS, County is the owner of land which is located at Weld County, Colorado, (the
"property"), and
WHEREAS, Company is the current owner of certain oil and gas leasehold or other rights
in adjacent properties ("Leased Lands"), on which Company intends to conduct certain oil and gas
operations including, but not limited to, drilling, completing, operating, and producing from wells
located on the Leased Lands ("Operations");
WHEREAS, Company desires to construct an above ground temporary water pipeline
across, over, and through the Property for purposes related to its Operations on the Leased Lands;
and
WHEREAS, the parties desire to enter into this Agreement to set forth the Parties rights
and obligations relating to use of the Property.
NOW, THEREFORE, in consideration of the covenants contained herein and the
agreements of Company to be performed hereunder and upon the conditions herein stated, County
does grant to Company, its successors and assigns, a non-exclusive license to use the property for
the purpose of constructing an above ground temporary water pipeline.
1. Grant of License. Subject to the conditions and terms of this Agreement, County
hereby grants, unto Company, its successors and assigns, an non-exclusive temporary
license to be thirty (30) feet in width for the installation, construction, operation, repair,
replacement, reconstruction, removal and maintenance of an above ground temporary
fresh water pipeline, along with any fittings, tanks, portable pumps and anchors that
may be necessary or convenient for the operation of the pipeline on, over, and through
the Property as described and depicted on Exhibit A, together with the right of ingress
and egress to and from the License, on, over and across the Property. It is agreed that
the License herein granted shall be used by Company to transport fresh water to and
1
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from the Leased Lands for the purpose of conducting Company's Operations.
Company shall have the right to select, change and/or alter the location of the
Temporary Waterline License through the Property depending upon the source of and
availability of water at the time of construction with consent of County, which shall not
be unreasonably withheld, conditioned or delayed. This license allows only for the
legal transport of fresh water, and does not include any transport, pumping, or
discharge of any water that has been used in oil and gas production.
2. Compensation. Contemporaneously with the execution of this Agreement by
County, Company shall pay County an amount equal to one dollar (s) per foot ($1.00)
per year as full consideration for the License and the rights granted to Company herein.
And five hundred dollars ($500.00) for the temporary pump site.
3. Effective Date and Term. This Agreement shall be effective as of the Effective
Date and shall remain in full force and effect for a period of twelve (12) months, any
additional time period must be approved in writing by County.
4. Reservation of Rights. The County reserves the right to use and occupy the property
for any purpose consistent with the rights and privileges herein granted, provided that
such use does not interfere with or endanger any of the facilities therein, or Company's
use thereof.
5. Damages. Company shall be responsible for any damage to the property or its
immediately surrounding premises that is not ordinary wear and tear and is caused by
Company's activities. Company shall take all reasonable measures to protect the
Property. If the Property is damaged by Company, Company agrees to return the
Property to its previous condition, to the reasonable satisfaction of the County, as soon
as practicable. Upon termination of this license, Company shall be responsible to
return the property to substantially the same condition as it was prior to Company
accessing the land. Company is not to modify or alter the Property, and may not
grade, construct any foundation or pad, or complete any earthwork that modifies the
Property without separate written approval of County.
6. Indemnification. Company hereby agrees to indemnify and hold County harmless
from and against any and all third party claims, losses, liability, damages, and causes of
action for personal injury or property damage arising out of Company's construction,
use and operation of the License, unless, and to the extent that, the negligence of
County, or any invitee or guest of County, causes or contributes to such third party
claims.
7. Compliance with Applicable laws. Company agrees to perform all operations and
reclamation in accordance with the rules and regulations of the Colorado Oil & Gas
Conservation Commission ("COGCC") and any applicable local, state and federal
agencies ("Government Agencies"), unless a variance therefrom is granted by the
COGCC and/or Government Agencies upon the request of County. Company agrees
2
to follow all laws and regulations regarding use, access, and transport of water.
Company agrees to transport only fresh water. Company agrees not to pollute the
land, or to utilize the land in any way to pollute the watersheds around it, and agrees to
follow all applicable environmental law and regulation.
8. Permissions. Company is responsible for obtaining all necessary permits and
permissions, including, but not limited to, water rights, access to third party property,
and any other permits or permissions required by law.
9. Construction Notice. Company will provide County with three (3) days' notice by
mail, phone call or personal visit prior to commencing operations on the Property.
Company agrees to use its best efforts to minimize disruption of County's use and
enjoyment of the Property and to prosecute all work diligently as possible to
completion following its commencement.
10. Site Condition. Company has inspected property and accepts it as is. County makes
no warranties or guarantees about the suitability of the property for Company's
purpose. Company agrees to return Property to substantially the same condition that
as existing prior to Company's use. Company shall be responsible to keep the
Property and its immediately surrounding premises clean and free of debris or trash that
may result from Company's activities.
11. Notice. Any notice, inquiry, or communication required or permitted under this
Agreement may be sent to the Parties as set forth below. Any communication or
delivery shall be deemed to have been duly made and the receiving Party charged with
notice (i) if personally delivered, when received, (ii) if sent by telecopy or facsimile
transmission, when received, (iii) if mailed, five (5) business days after mailing,
certified mail, return receipt requested, or (iv) if sent by overnight courier, one business
day after sending. All notices shall be addressed as follows:
To County:
Weld County Commissioners
1150 O Street
PO Box 758
Greeley, CO 80632
970-336-7235
Attn: Weld County Attorney's Office
To Company:
To:
Department to Contact:
Address:
3
PDC Energy, Inc.
Evans Land
3801 Carson Avenue
Evans, CO 80620
Phone Number:
Fax Number:
970-506-9272
970-506-9276
Toll Free 24 -Hour Emergency Phone Number: 1-877-350-0169
12. Governing Law. This Agreement shall be subject to, and construed under, the laws
of the State of Colorado, without regard to its conflict of law provisions, and
jurisdiction and venue shall be solely in the state or federal courts of Colorado.
13. Authority to Execute. Each of the undersigned principals of the Parties represents
and warrants that such person has the requisite corporate or legal authority to bind the
respective Parties to this Agreement.
14. Successors and Assigns. This Agreement shall extend to and bind County and
Company, and their respective heirs, personal representatives, successors and assigns.
The rights and obligations contained herein shall constitute covenants running with the
Property.
15. Entire Agreement. This Agreement constitutes the entire understanding among the
Parties with respect to its subject matter, superseding all negotiations, prior discussions
and prior agreements and understandings relating to such subject matter. This
Agreement can be amended only by written agreement signed by the both Parties.
16. Severability. If any provision of this Agreement is illegal, invalid, or unenforceable
under present or future laws, then, and in that event, it is the intention of the Parties that
the remainder of this Agreement shall not be affected.
17. Counterparts. This Agreement may be executed by the Parties in any number of
counterparts, each of which shall be deemed an original instrument, but all of which
together shall constitute but one and the same instrument. Electronically delivered
signatures shall be considered binding and deemed to be original counterparts for all
purposes.
18. Termination and Revocation. County retains the right revoke this license at any
time for any reason. County shall give Company written notice of its intent to revoke
this license at least fifteen (15) days prior to the day of such revocation. Such notice
shall be sent to the Company at its address written above, or served upon Company in
accordance with the Colorado Rules of Civil Procedures. Upon revocation, Company
is to vacate the land within fifteen (15) days of the date of revocation, and at that time
return the Property to substantially the same condition that existed prior to Company's
access.
19. Assignment. Company shall not assign any or all of its rights under this License
Agreement without first obtaining written consent to the assignment from the County.
4
20. Extension or Modification. Any amendments or modifications to this agreement
shall be in writing signed by both parties.
21. Interruptions. Neither party to this Agreement shall be liable to the other for delays in
delivery or failure to deliver or otherwise to perform any obligation under this
Agreement, where such failure is due to any cause beyond its reasonable control,
including but not limited to Acts of God, fires, strikes, war, flood, earthquakes or
Governmental actions.
22. 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-lO-lOl et seq., as applicable now or hereafter amended.
It is mutually agreed that this License Agreement and all the terms and conditions hereof shall
extend to be binding upon the parties hereto, and their successors and assigns.
EXECUTED the day and year first written above.
•
•
ATTEST: did&
Clerk to the Board
By:
Deputy C l
WELD COUNTY, COLORADO, by and through
through the Board of County Commissioners of the
ounty of Weld, State of Colorado
Mike Freeman, Chairman
APR 13 ZIPS
Company:
PDC Energy, Inc.
y: O.F.`3aldwin II
Title: Vice President Land
5
of.o/40 said 76
RE: TEMPORARY LICENSE FOR WATER PIPELINE - PDC ENERGY
ATTEST: Cj.dV G:.'A
Weld C , m nt Clerk to the oard WELD COUNTY, COLORADO
BY:
Deputy Crk to the B
BOARD OF COUNTY COMMISSIONERS
ke Freeman, Chair
APR 1 3 2016
APPROVED A T•f UNDI '! PROVED AS TO SUBSTANCE:
Controller
APPROVED AS TO FORM:
Coun" £ t orney
Elected Official or Department Head
NIA
Director of General Services
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