HomeMy WebLinkAbout780646.tiff RESOLUTION
RE: APPROVAL OF GRAVEL LEASE BEWTEEN HAROLD F. BAUMGARTNER AND
WELD COUNTY, COLORADO AND AUTHORIZATION FOR COMMISSIONERS
TO SIGN SAME.
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, a gravel lease between Harold F. Baumgartner and
Weld County, Colorado has been presented to the Board of County
Commissioners. A copy of said gravel lease is attached hereto
and incorporated herein by reference, and
WHEREAS, said gravel lease covers the property described
as follows:
The West one-half of the Northeast one-quarter
of Section 2, 1 reship 2 North, Range 68 West of
the 6th P.M. , and the Southwest one-quarter of
the Southeast one-quarter and the North one-half
of the Southeast one-quarter of Section 35, Township
3 North, Range 68 West of the 6th P.M. , and the
Northwest one-quarter of the Southwest one-quarter
of Section 36, Township 3 North, Range 68 West
of the 6th P.M. , Weld County, Colorado.
WHEREAS, the Board of County Commissioners deems it advisable
and in the best interests of Weld County to approve said gravel
lease.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the gravel lease between
Harold F. Baumgartner and Weld County, Colorado be, and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the Commissioners be,
and hereby are, authorized to sign said gravel lease.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 27th day of
December, A.D. , 1978.
} "7 G BOARD OF COUNTY COMMISSIONERS
ATTEST: "1`a.A- r4^/°"^^. -CUL .QAWfl1 WELD COUNTY, COLORADO
Weld County Clerk and Recorderand Clerk to the B rd
eputy Count "L erk 7
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APVED AS TO FORM: I / L
�� /
- �'<'E 780646
County Attorney
DATE PRESENTED: JANUARY 22 , 1979
GRAVEL LEASE
THIS AGREEMENT made this 29th day of December, 1978 by and
between HAROLD F. BAUMGARTNER, hereinafter called the Owner and
BOARD OF COUNTY COMMISSIONERS, Weld County, Colorado, hereinafter
called Lessee :
For and in consideration of the mutual covenants and condi-
tions hereinafter set forth, the parties do hereafter mutually
agree as follows:
1. RIGHTS GRANTED - PROPERTY DESCRIPTION
In consideration of the sum of $2 , 000. 00 received this date
and subject to the following terms and conditions of this Agree-
ment, the Owner hereby grants to Lessee an exclusive lease to
explore for, develop, excavate, process, stockpile, remove and sell
sand, gravel and rock overburdern only and for no other purposes,
but specifically excluding oil, gas hydrocarbons, etc. and all other
minerals from the following described property situated in Weld
County, Colorado:
Legal description attached as Exhibit "A" .
The Owner reserves the right to farm and utilize all of the
premises not affected or needed by Lessee' s operation. Lessee shall
have the right to make excavations, openings, stockpiles, reject
material dumps and conduct all necessary activities for the exca-
vation of gravel, and to place such machinery thereon as Lessee
may deem necessary for efficiently excavating and preparing gravel
on said described lands with the right to Lessee to remove all such
property at any time or within 90 days after termination of this
Agreement.
2. TITLE
The Owner warrants that it owns the leased premises and the
minerals thereunder and has full right and authority to execute
this lease. The ownership of Owner is encumbered by a Deed of
Trust to C. Frank Guertner and Lois J. Guertner, which Owner
shall keep current, and an Oil and Gas Lease and existing easement.
Page 1 of 6 pages
3. GRAVEL PERMITS - ZONING
Lessee shall hold the Owner completely free and harmless
from and against all State and County requirements pertaining
to the operation of a sand and gravel mining operation on the
described lands.
4. TERM
The term of this Lease shall be for a period commencing
the 28th day of December, 1978 and ending on the 30th day of
September, 1979. It is contemplated by the parties to this
Lease that the Lessee shall have a full nine (9) months in
which to mine the gravel from the premises covered by this
lease, and any delay caused by the inability of the Lessee to
obtain the necessary permits for mining gravel from the Mined
Land Reclamation Board of the State of Colorado, shall have the
force and effect of extending the term of this Lease so as to
allow the Lessee a full nine (9) months of mining operation on
said premises.
5. EQUIPMENT AND OPERATIONS
Lessee agrees to work the described lands in good and work-
manlike manner in accordance with the customs and practices of
sand and gravel pit operators.
6. ROYALTY ON SAND AND GRAVEL AND OVERBURDEN
Lessee agrees to pay owner a royalty of twenty-five cents
(250) per ton for all sand, gravel and overburden removed during
the term of this Lease. Lessee agrees to pay royalty for 120 , 000
tons ($30 , 000. 00) as follows:
a) $2, 000. 00 this date
b) $28 , 000. 00 on January 22 , 1979
)1.1(?)
The Lessee agrees to purchase a minimum of 120, 000 tons during
the term of this Lease.
At such time as the Lessee has removed quantities equal in
value, at the rate of 250 per ton, to the total amount paid as
royalty, the Lessee shall thereafter commence paying the royalty
monthly on the 1st day of each month for all sand, gravel and
overburden removed during the preceding calendar month.
Page 2 of 6 pages
Lessee shall have the right to remove, within ninety (90)
days after the expiration of this lease, any material stock-
piled on the premises provided Lessee has paid for same.
7. BOOKS AND RECORDS
Lessee agrees to keep accurate records of all sand, gravel
and rock removed from said described lands, and will at all
reasonable times make said records available to Owner for his
inspection.
8 . TAXES
Lessee agrees to pay all taxes lawfully assessed against all
machinery, tools , equipment, supplies, improvements, and all
other property placed by Lessee on the above described lands. The
Owner shall pay all taxes lawfully assessed against the real pro-
perty and the machinery, tools , equipment, supplies, improvements ,
and all other property now on or placed by Owner on the above
described lands. Any and all severance tax on the sand and gravel
shall be paid by Lessee.
9. INSURANCE AND OTHER OBLIGATIONS OF LESSEE
Lessee agrees to indemnify, save and keep Owner harmless of
and from all claims and demands of whatsoever kind and character
resulting from any act, operation, or negligence of Lessee on
the above described lands or in connection therewith, and to carry
liability insurance for such purpose. Lessee agrees at all times
during the life of this lease to comply with all applicable provi-
sions of the State Workmen' s Compensation Act to maintain adequate
workmen' s compensation and public liability insurance for the pro-
tection of Owner and provide certificates of insurance before
entering. Lessee shall maintain and keep in force public liability
insurance for injuries caused to persons and damage to or destruc-
tion of property with limits of not less than $100, 000. 00 - $300 , 000. 00
for injury or death to persons and of not less than $50, 000. 00 for
damages to or destruction of property.
Protection of Premises. Lessee agrees to cooperate with the
Owner and the farmer farming the place with regard to Lessee' s
Page 3 of 6 pages
operation so as not to unduly interfere with the farmer' s opera-
tion and in keeping gates closed and/or locked as agreed.
10. LESSEE' S RIGHT TO PAY LIENS
If any indebtendness, including taxes of Owner which may
become a lien against the described lands during the term of
this Agreement, should not be paid when due, then Lessee at his
option, may pay the same in order to protect its rights hereunder,
and for all payments so made Lessee shall be reimbursed by
deducting such amounts from royalties next becoming due to Owner.
11. OWNER' S RIGHT OF TERMINATION
Upon failure of Lessee to perform any of the covenants,
agreements, or conditions herein contained to be performed by
Lessee, except payment of the royalty monthly, Owner may give
notice thereof to Lessee as hereinafter provided, stating in such
notice wherein Lessee is in default hereunder. Lessee shall then
have thirty (30) days from the time of the giving of such notice
to rectify his defaults and if Lessee shall fail within said
thirty-day period fully to rectify such defaults specified in
said notice, then Owner shall have the right immediately to cancel
and terminate this entire Agreement.
Any cancellation or termination of this Agreement by Owner
shall be made by giving Lessee written notice thereof as herein-
after provided. No waiver by Owner of any breach or default shall
affect or be deemed to affect any of Owner' s rights or remedies as
to any subsequent or other breach or default.
12. AFTER TERMINATION
Upon any such termination of this Agreement by Owner, all
sums theretofore paid hereunder to Owner shall be and remain the
property of Owner and no further consideration as rental for the
demised premises or for the granting of this lease shall be recover-
able by Owner except any sum or sums due as royalty prior to the
date of cancellation, together with any sum or sums becoming due
under the terms hereof until the date on which possession is sur-
rendered by Lessee. Lessee, shall not, by reason of such termina-
tion, be released or relieved from any other claim, demand or
Page 4 of 6 pages
liability incurred hereunder prior to such termination, and Lessee
shall have no further rights on the described premises except to
remove his property therefrom, as provided in Paragraph 1 herein.
Lessee shall transfer any and all gravel permits to the Owner upon
such termination or cancellation.
13. It is further specifically and particularly agreed:
a) Lessee and Owner shall mutually agree upon a proce-
dure to be followed to record and keep track of the amount of sand,
gravel and overburden removed.
b) Lessee acknowledges that the premises are leased for
oil and gas exploration and production. The necessary well sites,
access roads and pipeline rights of way are excluded from the lease
and reserved and Lessee shall not interfere with same whether same
are drilled and installed before or during the term of this lease.
Said oil and gas lease and its requirements shall have full priority
over this gravel lease and Lessee shall defer its operations to the
oil and gas operations .
c) This lease is personal to Lessee and Lessee shall not
assign, encumber, or transfer its interest, directly or indirectly,
without the prior written consent of Owner.
d) The Lessee shall restore the premises to their state
and condition as exist at this date at request of Owner, reasonable
wear and tear excepted and allowance for Lessee' s operations excepted
such as pits, excavations, etc. which cannot reasonably be expected
to be restored.
e) The Owner shall have the right at all reasonable
times to enter upon Lessee' s operations and inspect same and to
determine quantities of materials removed and examine Lessee ' s
records.
14. NOTICES
Any notice of default or of termination of this Agreement and
all other notices and demands in writing required or that may be
given hereunder, if to Owner shall be forwarded by Certified. Mail
O
addressed to Harold F. Baumgartner, P. O. Box ItA , Brighton, Colo-
Page 5 of 6 gages
rado, 80601, and if for Lessee shall be forwarded by Certified
Mail addressed to Board of County Commissioners, County of Weld,
915 10th Street, Greeley, Colorado 80631.
15. OPTION TO PURCHASE
As further consideration for this lease, the Owner hereby
grants to Lessee the first right and option to purchase the pre-
mises described on Exhibit "B" , in the event the Owner, during
the term hereof, desires to sell same. The premises shall not,
during the term of the lease, be sold to another party without
first offering same to Lessee on the same terms and shall not be
sold to a third party on more favorable or different terms than
those presented to Lessee. Lessee shall have twenty (20) days
after receipt of the written offer within which to accept or
reject any such offer.
IN WITNESS WHEREOF, the parties hereto have duly executed
this indenture the day and year first above written.
LESSEE:
�'J}� �J �, BOARD OF COUNTY COMMISSIONERS
ATTEST: " `Litt Vtt .�2 ��''+ 4r' COUNTY OF WELD Weld County Clerk and Recorder 1141±-27-11---- C'//
---
and Clerk to the Beard
Deputy County Clerk • ¢ � / r�J��lr�G.2 .S f20-Ci 4 .L'i-'i 12ildi!C'
/
OWNER:
(AROLD F. BAUMGARTNIR
Page 6 of 6 pages
EXHIBIT "A"
ATTACHED TO
GRAVEL LEASE
DATED , 1978
LESSOR: Harold F. Baumgartner
LESSEE: Board of County Commissioners
Weld County, Colorado
The West 1/2 of the Northeast 1/4
of Section 2, Township 2 North,
Range 68 West of the 6th P.M. , and
the Southwest 1/4 of the Southeast
1/4 and the North 1/2 of the
Southeast 1/4 of Section 35,
Township 3 North, Range 68 West of
the 6th P.M. , and the Northwest
1/4 of the Southwest 1/4 of Section
36, Township 3 North, Range 68 West
of the 6th P.M. , Weld County,
Colorado.
EXHIBIT "B"
ATTACHED TO
—.., GRAVEL LEASE DATED 1978
,�1G-L
LESSOR: Harold F. Baumgartner
LESSEE: Board of County Commissioners
Weld County, Colorado
The West 1/2 of the Northeast 1/4
of Section 2 , Township 2 North,
Range 68 West of the 6th P.M. , and
the Southwest 1/4 of the Southeast
1/4 and the North 1/2 of the
Southeast 1/4 of Section 35 ,
Township 3 North, Range 68 West of
the 6th P.M. , and the Northwest
1/4 of the Southwest 1/4 of Section
36, Township 3 North, Range 68 West
of the 6th P.M. , Weld County,
Colorado, together with two (2)
shares of the capital stock of the
Rural Ditch Company and all water
and water rights pertaining to the
property and four (4) shares of the
capital stock of Hay Seed Ditch
Company.
DANIEL, McCAIN & BROWN
ATTORNEYS AT LAW
1]RIc;IN(1N P HOI I '.'.IGNAI IHIII um,.
ORREL A. DANIEL IOG BRIDGE STREET TILE PHONE
LEONARD H. MCCAIN BRIGHTON, COLORADO 80601 B0IGHTON BRO-o]T
EDWARD A BROWN
WILLIAM WAII A,. f
STEVEN N ROECHENITI, January 16 , ] 979
Mr. Thomas O. David
Weld County Attorney
P. O. Box 1948
Greeley, Colorado 80631
Dear Tom:
I enclose original and two copies of the Gravel Lease
that have now been signed by Harold F. Baumgartner. Please
return a fully signed copy to me.
You will note that I changed the date for the second
payment to January 22 , 1979. Harold initialed this change.
You can send your check to me for delivery to Harold
or to him directly at your option.
Sincerely yours ,
DANIEL, McCAIN & BROWN
Et3ward , . 4rown
EAB:dj
Enclosures
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