HomeMy WebLinkAbout20170734.tiffRESOLUTION
RE: APPROVE RELEASE OF COLLATERAL FOR NGL WATER SOLUTIONS DJ, LLC,
AND ACCEPT REPLACEMENT WARRANTY COLLATERAL FROM CENTENNIAL
WATER PIPELINES, LLC
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, by Resolution dated August 24, 2011, the Board approved the application of
Dietzler Water Resources Corporation, 4970 Varsity Drive, Lisle. Illinois 60532, for an Oil and
Gas Support and Service Facility (water supply and storage) on the following described real
estate. to -wit:
N1/2 NW1/4 of Section 13. Township 10 North,
Range 61 West of the 6th P.M., Weld County,
Colorado, and
WHEREAS, on April 23, 2012, the Board of County Commissioners of Weld County,
Colorado. approved an Improvements Agreement According to Policy Regarding Collateral for
Improvements between the County of Weld, State of Colorado, by and through the Board of
County Commissioners of Weld County, and Pawnee Water Management / Halliburton Energy
Services, Inc.. with terms and conditions being as stated in said agreement, and accepted
Performance Bond #K08358989 from Westchester Fire Insurance Company, 436 Walnut Street,
Philadelphia, Pennsylvania 19106, in the amount of $270,283.00. and
WHEREAS, by Resolution dated April 21, 2014, the Board approved a partial release of
said collateral. in the amount of $229,740.55. and accepted replacement collateral in the form of
a Bond Rider to Performance Bond #K08358989. from Westchester Fire Insurance Company in
the amount of $40,542.45, to serve as warranty collateral for a period of two years.
WHEREAS, staff from the Weld County Departments of Public Works and Planning
Services have conducted a visual inspection and, based on staff's recommendation. the Board
deems it advisable to approve the cancellation and release of said collateral from the prior
property owner, Christopher P. Dietzler, and accept the road maintenance warranty collateral
being presented in the form of a Company Check, #4251011730. from the current property owner,
NGL Water Solutions DJ, LLC, in the amount of $2,400.00, and drawn on Bank of America, to
serve as warranty collateral for a period of two years.
WHEREAS, a change in ownership prompts the release of the aforementioned warranty
collateral, and the acceptance of replacement warranty collateral. in the form of a company check
#11886. from new owner, Centennial Water Pipelines, LLC, in the amount of $2,400.00, and
drawn on Citibank, N.A., to serve as warranty collateral for the remainder of the obligation.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the warranty collateral, from NGL Water Solutions DJ, LLC, be released,
and Company Check #11886. from Centennial Water Pipelines, LLC, drawn on the Citibank, N.A.,
in the amount of $2,400.00, be. and hereby is, accepted.
4290225 Pages: 1 of 2 cfc• PL fv J
03/31/2017 10:51 AM R Fee:$0.00
Carly Koppes. Clerk and Recorder. Weld County, CO
11 111 PO r.VCI ltrd.I TIV 4ii', i;ii, h+l V 10.1,11, Tiii i I i 11/2 WM II III
2017-0734
PL2125
APPROVE RELEASE AND ACCEPT REPLACEMENT WARRANTY COLLATERAL -
CENTENNIAL WATER PIPELINES, LLC (USR-1787/USR12-0077)
PAGE 2
BE IT FURTHER RESOLVED by the Board that the Clerk to the Board be, and hereby is,
directed to return said collateral.
The above and foregoing Resolution was. on motion duly made and seconded. adopted
by the following vote on the 13th day of March, A.D., 2017.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLOR' 1O
ATTEST: da,f4A)
s• ��
Weld County Clerk to the Board
BY:
puty Clerk to the Board
APPROVEC� f�TO F
/V
County Attorney
Date of signature: LSt aci I l 7
4290225 Pages: 2 of 2
03/31/2017 10:51 AM R Fee:$0.00
Carly Koppes, Clerk and Recorder: Weld Cour:y CO
Bill
Julie A. Cozad. Chair
Steve Moreno, Pro-Tem
can P. Conway
Barbara Kirkmeye
2017-0734
PL2125
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW/Regular or Consent Hearing Agenda REQUEST
RE: BOCC Agenda Item — Accept New Collateral in Replace of Existing Collateral Due to Ownership Transfer:
Pawnee Water Management / Halliburton Energy Services, Inc. — USR-1787/USR12-0077
DEPARTMENT: Public Works DATE: 3/1/2017
PERSON REQUESTING: Evan Pinkham
Brief description of the issue:
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The Department of Public Works received a request from the current owner of the facility, Centennial Water Pipelines,
LLC, requesting acceptance of new road maintenance collateral to replace the currently held collateral put forth by the
previous owner of the facility, NGL Water Solutions, LLC, for the facility (USR- I 787/USR12-0077), located on CR 95
south of CR 1 18, southeast of the town of Grover.
NGL Water Solutions, LLC is requesting that their road maintenance collateral ($2,400.00) be released since they no longer
have ownership interest in the facility. The current owner, Centennial Water Pipelines, LLC, has provided road maintenance
collateral to replace the existing collateral ($2,400.00).
Frank Haug Assistant County Attorney has reviewed the Improvements Agreement and Collateral requirements and
recommends this release of collateral and replacing it with road maintenance collateral fr ReCogy�jions, LLC.
Weld County Collateral List: 11//
Pawnee Water Management / Halliburton Energy Services, Inc. MAR - 2 2017
(#2012-1064 - PL2125, USR #1787) 04/23/2012 Improvements
Agreement - Performance Bond #K08358989 from Westchester WELD COUNTY
Fire Insurance Company COMMISSIONERS
Noncancellable — Renews Annually Automatically $270,283.00
Partial Cancellation (2014-1251) 04/21/2014 -229,740.55
Bond Rider accepted as warranty collateral 40,542.5
Release/Returned Bond Rider and accepted
Check #4251011730 from NGL Water Solutions DJ, LLC
For warranty collateral — (2016-3450)
Deposited 11/15/16
$2,400.00
What options exist for the Board?
1. Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda.
2. Have this BOCC Hearing item be placed on the next available agenda as part of the Regular Agenda.
Recommendation:
Option 1. The Departments of Public Works, Planning Services and the County Attorney's Office are recommending release
of collateral, as shown above from the Weld County Collateral List, in the amount of $2,400.00. Weld County would then
accept $2,400.00 from Centennial Water Pipelines, LLC to serve as road maintenance collateral, and also requests that this
item be placed on the next regularly scheduled BOCC Hearing, as part of the Consent Agenda. Centennial Water Pipelines,
LLC has submitted replacement collateral in the form of a Check (#01
$2,400.00.
Sean P. Conway
Julie A. Cozad, Chair
Mike Freeman
Barbara Kirkmeyer
Steve Moreno, Pro-Tem
2017-0734
Approve Schedule as Regular
Recommendation BOCC Hearing Item
2 pt- — l S
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CENTENNIAL
Centennial Water Pipelines LLC
1200 17th St, Ste 2850
Denver CO 80202
Ph. 720.881.7100
Fax 720.881.7101
February 14, 2017
Weld County Public Works
Development Review
1111 H Street, P.D. Box 758
Greeley, CO 80632
(970) 400-3727
Attn: Evan Pinkham
Re: Pawnee Water Station Bond Transfer
Dear Evan:
Centennial Water Pipelines LLC understands and has reviewed the Improvements Agreement found at
Reception # 3848158 in the Weld County Records, and further understands that Centennial Water
Pipelines LLC will be bound to the expectations within that Improvements Agreement.
If you have any questions please do not hesitate to contact me.
Sincerely,
Chad Leavitt CPA
Chief Financial Officer
Centennial Water Pipelines, LLC
Evan Pinkham
From:
Sent:
To:
Cc:
Subject:
Mr. Pinkham,
Chad Leavitt <cleavitt@sterlingenergy.us>
Wednesday, January 25, 2017 5:32 PM
Evan Pinkham
Dan Watson; msherock@grasslandwatersolutions.com
FW: Pawnee Water Station Bond Transfer...
I am requesting that that Weld County place new collateral on the facility we acquired from NGL (referenced in the
email forwarded below) because we, Centennial Water Pipelines LLC, are the new owner of the facility. Can we pay the
$2400.00 with a credit card? If not, we will make out a check to Weld County Public Works for the amount.
I look forward to your response.
Regards,
•
Chad Leavitt
Chief Financial Officer
6
Sterling Energy
Midstream and Infrastructure Services
One Tabor Center 11200 17th Street, Suite 2850 I Denver, CO 80202
D 720.881.7099 I M 720.881.7100 I C 720.335.3521
cleavitt@ sterlingenergv.us I www.sterlingenergy.us
From: Mark Sherock [mailto:msherock@grasslandwatersolutions.com]
Sent: Wednesday, January 25, 2017 4:53 PM
To: Chad Leavitt; Dan Watson
Subject: FW: Pawnee Water Station Bond Transfer...
Chad & Dan,
Please note that Centennial will need to replace the road maintenance collateral bond with Weld County in the amount
of $2,400. NGL actually paid this amount to replace Halliburton's original bond, but Grassland not made aware of that
matter until after NGL acquired Chris' interest in 2016. As such, NGL paid for this directly, and it was not paid using GWS
funds. (This was one of the remaining issues regarding reconciliation of Working Capital.) NGL will obtain a direct
refund of this amount, but only after Centennial acquires the replacement bond.
Please contact Evan Pinkham of Weld County Public Works, by e-mail or directly by phone as indicated below.
Mark
From: Evan Pinkham [mailto:epinkham@co.weld.co.us]
Sent: Wednesday, January 25, 2017 2:11 PM
To: Mark Sherock <msherock@grasslandwatersolutions.com>
Subject: RE: Pawnee Water Station Bond Transfer...
Mark,
In order to move forward with the request to release the collateral put forth by NGL, I will need to have a replacement
collateral put in place by the current owner of the facility (Centennial Water Pipelines). I will need you to have a
representative from Centennial Water Pipelines LLC contact me regarding this request. Please have them send me an
email requesting that we place new collateral on the facility because they are the new owner. I will also need a
check/bond for $2400.00 from them. If a check is used, please have them make it out to Weld County Public Works.
Once the replacement collateral is in place, I will work to release the current collateral to NGL.
Please let me know if you have any questions.
Thanks,
Evan
Evan Pinkham
Development Review
Weld County Public Works
1111 H Street, P.O. Box 758
Greeley, CO 80632
(970)400-3727
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: Mark Sherock [mailto:msherock@grasslandwatersolutions.com]
Sent: Thursday, January 19, 2017 6:40 PM
To: Evan Pinkham <epinkham@co.weld.co.us>
Subject: RE: Pawnee Water Station Bond Transfer...
Hi Evan,
A few months back, you assisted in transferring the road maintenance collateral associated with USR-1787/USR12-0077
from Halliburton to NGL, which at the time was the sole owner Grassland Water Solutions LLC. To complicate your life a
bit more, on 11/30/16, an affiliate of ours, Poudre Valley Capital LLC, re -acquired 100% ownership of Grassland Water
Solutions LLC, and immediately sold the assets to Centennial Water Pipelines LLC (a subsidiary of Sterling Energy). As
such, the collateral bond of $2,400 that was posted by NGL in late October will now need to be replaced in the name of
Centennial Water Pipelines LLC (Centennial).
2
Based on previous correspondence, it appears that such collateral bonds are not transferrable between parties. I expect
that the County will refund the $2,400 bond back to NGL and that Centennial would then have to submit a check for a
replacement bond of $2,400.
Please confirm if my understanding is correct, and let me know what other steps are required to make this change
occur. I am working with both NGL and Centennial on some post -close reconciliation items and would appreciate a
quick response. Thank you.
Mark
AGRASSLAND
WATER SOLUTIONS
J. Mark Sherock
Chief Financial Officer
Grassland Water Solutions LLC
1400 16th Street Mall, Suite 400
Denver, CO 80202
O: 970.286.0248
C: 303.815.3997
From: Evan Pinkham[mailto:epinkhamPco.weld.co.usj
Sent: Tuesday, October 11, 2016 1:23 PM
To: Doug White <Doug.White@nglep.com>; Jack Lopez <Jack.Lopez@nglep.com>
Cc: Mark Sherock<msherock@grasslandwatersolutions.com>; Jim Winter <Jim.WinterPnglep.com>;
Bonita.Johnson@Halliburton.com; Kim Ogle <kogle@co.weld.co.us>; Janet Lundquist <jlundquist@co.weld.co.us>
Subject: RE: Pawnee Water Station Bond Transfer...
Doug/Jack,
After speaking with our legal department, we will be able to transfer the bond to NGL since they have ownership of
Grassland Water Solutions. NGL will need to provide the $2,400.00 road maintenance collateral for this site, and we will
be able to release the remainder of the bond that Halliburton has on file.
Let me know if you have any questions.
Thanks
Evan Pinkham
Development Review
Weld County Public Works
1111 H Street, P.O. Box 758
Greeley, CO 80632
(970)400-3727
3
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: Doug White [maitto:Doug.White@rntiep.cornj
Sent: Tuesday, October 11, 2016 10:31 AM
To: Evan Pinkham <eoinkhamteco.weld.co.us>; Jack Lopez <Jack.LooezPnaleo.com>; Kim Ogle <kogle0Bco.weld.co.us>
Cc: msherock@arasslandwatersotutions.com; Jim Winter <Jim.Wintertanalea.com>
Subject: RE: Pawnee Water Station Bond Transfer...
Grassland Water Solutions, LLC (GWS) owns the asset. NGL Water Solutions DJ, LLC owns 100% of the
equity of GWS. Therefore the asset remains a GWS asset.
Doug
Energy Partners LP
Doug White I Executive Vice President I NGL Water Solutions
3773 Cherry Creek N Dr, Suite 1000 I Denver, CO 80209
Tel: (303)-815-1010 ext 3179 I Moblie: (303)-809-3326
doug.white@nglep.com I www.nglenergypartners.com
4
From: Evan Pinkham [mailto:epinkham@co.weld.co.us]
Sent: Tuesday, October 11, 2016 9:41 AM
To: Jack Lopez; Kim Ogle
Cc: msherock@grasslandwatersolutions.com; Doug White
Subject: RE: Pawnee Water Station Bond Transfer...
Jack,
I spoke to Kim Ogle, the planner on this a few weeks ago about this case and he said that we are waiting to get
some documentation showing that NGL has acquired the site. It still shows on our records that Grassland Water
Solutions has ownership of the site.
Kim — Do you know if we have received documentation saying that NGL has ownership of the site?
Thanks,
Evan Pinkham
Development Review
Weld County Public Works
1111 H Street, P.O. Box 758
Greeley, CO 80632
(970)400-3727
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
5
taking of any action concerning the contents of this communication or any attachments by anyone other than the
named recipient is strictly prohibited.
From: Jack Lopez [mailto:Jack.Lopez@nglep.com]
Sent: Monday, October 10, 2016 2:56 PM
To: Evan Pinkham <epinkham@co.weld.co.us>
Cc: msherockna.grasslandwatersolutions.com; Doug White <Doug.White@nglep.com>
Subject: Fwd: Pawnee Water Station Bond Transfer...
Hi Evan,
I know that it has been a while on this, but can you please update us on where we are in this process? From
what I understand, there should not have been anything preventing the release of this bond after our work a few
months ago?
Thank you,
Jack Lopez
*Please note: I am out of country and may not immediately reply to messages.
Sent from my Verizon, Samsung Galaxy smartphone
Original message
6
From: Mark Sherock<msherock@grasslandwatersolutions.com>
Date: 10/10/16 8:17 PM (GMT+01:00)
To: Bonita Johnson <Bonita.Johnson@Halliburton.com>
Cc: Todd Bessler <Todd.Bessler@Halliburton.com>, David Kasnoff <David.Kasnoff@l lliburton m,>,
epinklatm@weldgov.com, Jack Lopez <Jack.Lopez@a,nglep.com>
Subject: RE: Pawnee Water Station Bond Transfer...
Hi Bonita,
I do not have a current status on this. The responsible party for the USR bond is NGL Water Solutions DJ,
LLC. I have copied Jack Lopez on this correspondence, who was the NGL representative that I believe this was
handed off to. I'd expect that either he or Evan would be your best bet.
Mark
From: Bonita Johnson [mailto:Bonita.Johnson@lEfallilmrtoo.com]
Sent: Monday, October 10, 2016 12:02 PM
To: David Kasnoff <David.Kasnoffta talbiburton,com>; epinicliam@weldgov.com Mark Sherock
<msberocl asslandwatersolutions.com>
Cc: Todd Bessler <Todd.Bessler@lIalliburton.com>
Subject: RE: Pawnee Water Station Bond Transfer...
Evan or Mark,
Is there an update on the release of this bond?
Thanks,
Bonita Johnson
Halliburton Risk Management Services
7
Ph. 281 575-4320 VOIP 88 216 4320 Fax 281 575-4377
bonitajohnson@halliburton.com
From: David Kasnoff
Sent: Monday, August 08, 2016 9:57 AM
To: epinkham@weldgov.com; msherock@grasslandwatersolutions.com
Cc: Bonita Johnson; Todd Bessler
Subject: Pawnee Water Station Bond Transfer...
Importance: High
Evan/Mark — Just checking in to see if there's been any movement on this. Please provide an update at your
earliest convenience and let us know if there's any additional information you need from the Halliburton side.
Thanks.
David Kasnoff
Real Estate Services Manager - Rockies Area
3199 D Rd
Grand Junction, CO 81504-6185
Email: david.kitsnoff@halliburton.com
Office: +1 970-523-3615
Mobile: +1 970-623-9359
Follow Halliburton: Linkedln I Facebook I Twitter I YouTube Rog
HALL aU rrpN
This e-mail, including any attached files, may contain confidential and privileged information for the sole use of
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WARNING: ORIGINAL DOCUMENT HAS A VOID PANTOGRAPH • MICROPRINTING • FLUORESCENT FIBERS • CHEMICAL REACTANTS
CENTENNIAL WATER PIPELINES LLC
1200 17th STREET. SUITE 2850
DENVER. CO 8020x,
720-881-7100
PAY
TO
THE L,
ORDER
OF
OPERATING ACCOUNT
TWO THOUSAND FOUR HUNDRED DOLLARS AND NO CENTS
Fr
Weld Cdeiuty Public Works
1111 H Street.
PO Box 758 x.i` (Clyl�
Greeley, CO 80632
CITIBANK, N.A.
88-9353
011886
CHECK NO. M DATE PAY EXACTLY
11886 02/03/17 ******2,400.00
VOID AFTER 90 DAYS
THE ORIGINAL DOCUMENT HAS A WATERMARK
PAYEE I PAYEE NO. I CHECK NO.
Weld County Public Works
VOUCHER VENDOR INV # INV DATE
TOTAL
AMOUNT
01 -AP -24 BOND2017 01/25/17 2,400.00
TOTAL INVOICES PAID
1695 11886 02/03/17
PRIOR PMTS NET
& DISCOUNTS AMOUNT
0.00 2,400.00
2,400.00
or(
CENTENNIAL WATER PIPELINES LLC
1200 17th STREET, SUITE 2850
DENVER, CO 80202
DETACH AND RETAIN
FOR TAX PURPOSES
Weld County, Colorado
WARRANT NUMBER 3322062
INVOICE NUMBER
OR REFERENCE
INVOIC:F
fATF
INVOIC.F
AMOUNT
DISCO! INT OR
nFDI ICTIONS
ADDITIONAL
AMOUNT
NET
AMOUNT
03/09/17
2,400.00
0.00
0.00
2,400.00
REMOVE DOCUMENT ALONG THIS PERFORATION
THIS DOCUMENT IS PRINTED IN TWO COLORS. DO NOT ACCEPT UNLESS BLUE AND BROWN ARE PRESENT.
SW MO
STATE OF COLORADO
Weld County
By Order of The Board Of County Commissioners
P.O. Box 758
Greeley, CO 80632
(970) 356-4000 FAX: (970)352-0242
Greeley, CO 80634
Two Thousand Four Hundred Dollars
PAY TO THE ORDER OF
NGL WATER SOLUTIONS DJ LLC
A SUBSIDIARY OF NGL ENERGY PART
3773 CHERRY CREEK N DR STE 1000
DENVER CO 80209
82-91
1021
DATE 3/13/2017
"
CHAIRMAN BOARD OF COUN
WARRANT
NUMBER 3322062
OUT OF MONIES IN THE TREASURY
APPROPRIATED THEREFOR AND
CHARGEABLE TO THE
PAY FXACTI Y
$****"2,400.00
OID IF NOTiC)l6HED N 60 DAYS
SS
TY COM TONE
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CLERK OF THE BOARD
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