HomeMy WebLinkAbout20142311.tiff INVENTORY OF ITEMS FOR CONSIDERATION
Applicant CKG Incorporated c/o Chad Goens Case Number USR14-0018
Submitted or Prepared
Prior to At
Hearing Hearing
1 Letter from Anadarko dated July 10, 2014 X
I hereby certify that the one item identified herein was submitted to the Department of Planning Services
at or prior to the scheduled Planning Commissioners hearing.
Diana Aungst , Planner
ANADARKO PETROLEUM CORPORATION MAIN ( 720) 929-6000
1099 18'" STREET, SUITE 1800 • DENvER. COLORADO 80202
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pE-:tlolc:urri Corporation
July 10, 2014
Via e-mail
Diana Aungst, Planner
Weld County Planning and Building Department
1555 N 17th Avenue
Greeley, CO 80631
NOTICE OF MINERAL INTERESTS AND OIL AND GAS LEASEHOLD
INTERESTS OWNED BY ANADARKO LAND CORP., ANADARKO E&P
COMPANY LP AND KERR-McGEE OIL & GAS ONSHORE LP AND OBJECTION
Re: CKG Inc. USR14-0018
Township 1 North, Range 66 West
Section 27: part of the E/2W/2SE/4
Weld County, Colorado
Ms. Aungst:
This objection and notice letter is submitted to Weld County ("County") on behalf of
Anadarko Land Corp. ("Anadarko Land"), Anadarko E&P Company LP ("Anadarko E&P"),
and Kerr-McGee Oil & Gas Onshore LP ("Kerr-McGee") with respect to the application for
a Site Specific Develoment Plan and Use by Special Review Permit that has been filed with
the County by CKG Inc. ("Applicant") that includes property in part of the E/2W/2SE/4 of
Section 27, Township 1 North, Range 66 West in Weld County.
Anadarko Land and Anadarko E&P (the "Anadarko entities") together own the
minerals that underlie the property located in part of the E/2W/2SE,/4 of Section 27
("Property"). Kerr-McGee owns oil and gas leasehold interests in the Property.
The Anadarko entities and Ken-McGee wish to give notice to the County of the
mineral interests and oil and gas leasehold interests they own under the Property and make
the County aware that the approval of a final application for development for the Property
may significantly impact the prospective development of the minerals and oil and gas
leasehold interests that underlie the Property. The Anadarko Entities and Kerr-McGee object
to the approval of a final application for development until agreements on surface use are
reached among the Anadarko entities, Kerr-McGee and the Applicant covering the Property.
The following are comments in support of this Notice and Objection:
EXHIBIT
1 . The Mineral Resources Owned by Anadarko Land Corp.
Anadarko Land owns all of the hard rock minerals, including the coal, that underlies
the Property. A senior landman for Anadarko Land has reviewed the Property for coal
resource potential and determined that the Property is underlain with Laramie Formation
coals that are approximately 6.6 feet thick and lie at a depth starting at approximately 924
feet. Laramie Formation coals have a high BTU of approximately 8,900 to 9,800 btu/lb and a
low sulfur content of between .3 and .8 percent. The landman estimates that there may be
over 7.34 million tons of Laramie Formation coal in Section 27.
Enclosed for your ready reference is a copy of the pertinent portion of the Colorado
Coal Resources and Development Map that depicts the type and extent of the coal resources
that underlie the Property.
2. The Oil and Gas Resources Owned by the Anadarko Entities.
The Anadarko entities together own all of the oil and gas that underlies the Property,
and Kerr-McGee owns oil and gas leasehold interests for the Property.
Colorado On and Gas Conservation Commission ("COGCC") reports reflect that
there is currently six producing wells in Section 27. Current COGCC rules and regulation
provide for five drilling windows in a quarter section where the Property is located, one in
the center of the quarter section and one in the center of each quarter quarter section.
3 . There is Clear Statutory Authority and Direction for the County to Take Into Account
the Rights of Mineral Interest Owners in Its Consideration of Applications for
Development.
The State of Colorado recognizes the important rights of mineral owners and lessees
in C.R.S. § 30-28- 133( 10) which states and acknowledges that both the mineral estate and
the surface estate are interests in land and that the two interests are "separate and distinct."
The subsection specifically recognizes that the owners of subsurface mineral interests and
their lessees have "the same rights and privileges as surface owners."
4. Owners of Split Estates Must Exercise Their Rights in a Way that Gives Due Regard
to the Rights of the Other.
Colorado law provides that the mineral owner has the right of reasonable access to
and use of the surface estate to extract minerals and that the mineral estate owner and the
surface estate owner are to give due regard to the rights of the other and reasonably
accommodate each other's rights.
Union Pacific Railroad Company gave a deed to James Denis dated May 20, 1913
and recorded June 6, 1913 in Book 383 at Page 132 in which the Railroad reserved the
minerals for the Property. The Railroad granted the minerals to Champlin Petroleum
Company by an assignment and conveyance of oil and gas rights dated March 31 , 1971 and
recorded on April 14, 1971 in Book 644 at Reception No. 1565709. Applicant had record
notice at the time it acquired its interests in the Property that the minerals were severed from
the surface estate.
5 . The Anadarko Entities and Kerr-McGee Have Entered into Many Agreements with
Developers With Respect to the Disposition of the Minerals at the Time that the
Developer Proposes to Develop the Surface Estate, and the Public Interest is Served
by the Parties Entering into Such an Agreement.
The mineral assets have significant value and consequently the Anadarko entities and
Kerr-McGee are concerned that the approval by the County of an application for
development for the Property and the subsequent build-out of the Property may impair their
ability to develop their minerals and oil and gas leasehold.
Any future surface development plans approved by the County should incorporate
and designate lands to be set aside for oil and gas development and expressly provide
protection for future wells, pipelines, gathering lines and related oil and gas facilities and
equipment. Approval of any surface development plan that forecloses the rights of mineral
owners may be a compensable taking.
The Anadarko entities and Kerr-McGee have extensive mineral and oil and gas
leasehold interests throughout the State of Colorado and have successfully worked with many
parties who wish to develop the surface estate in order to assure the compatible development
of the surface estate and the oil and gas estate or some other disposition of the minerals.
The practice of the Anadarko entities and Kerr-McGee is to meet with surface owners
to reach a mutually acceptable surface use agreement and agreement for the disposition of the
hard rock mineral interests. The Anadarko entities and Kerr-McGee have been in discussions
with the Applicant on this matter; however, no agreement has been reached to date. Because
no agreement has been reached between the parties that covers the Property, and in order to
protect their mineral and oil and gas leasehold interests and private property rights, the
Anadarko entities and Kerr-McGee object to the application and request that the County
make any approval of a final application for development of the Property conditioned upon
an agreement among the Anadarko entities, Kerr-McGee and the Applicant.
Very truly yours,
Dave Haertel
Enclosure --��
cc: Susan Aldridge, Esq.
Don Ballard
Sean Urvan
Mike Brotzman
Chad Goens (ckgoens@q.com)
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