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Home My WebLink About20140268.tiff RESOLUTION RE: APPROVE AMENDED SMALL TRACT OIL AND GAS LEASE AND AUTHORIZE CHAIR TO SIGN - CONTINENTAL RESOURCES, 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, on September 17, 2012, by Resolution #2012-2517, the Board waived the bid procedure, accepted the bid offer of $1,815.00, and executed a Small Tract Lease with Continental Resources, Inc.; however, the lessee name was inadvertently omitted from the recorded lease, and HEREAS, Diamond Resources Company, leasing agent on behalf of Continental Resources, 63 Inverness Drive East, Suite 200, Englewood, Colorado 80112, has requested an Amended Small Tract Lease and Resolution to reflect the lessee name and full legal description for accurate public record on the following described mineral acres: Tract 5: A strip of land 20 feet wide adjacent and north of the present highway right-of-way, extending westward approximately 5,280 feet from the east boundary line of Section 24 to the west boundary line of said section, in Township 8 North, Range 62 West of the 6th P.M., Weld County, Colorado WHEREAS, the Board finds that the Amended Lease from Continental Resources, Inc., is acceptable, with all terms and conditions being consistent with the Small Tract Oil and Gas Lease originally approved on September 17, 2012, 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 Amended Small Tract Oil and Gas Lease from Continental Resources, Inc., be and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair, be, and hereby is, authorized to sign said Small Tract Oil and Gas Lease. 2014-0268 LE0308 • CA , Lartk tordnQ cQ.1 , lLl AMENDED SMALL TRACT OIL AND GAS LEASE - CONTINENTAL RESOURCES, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of January, A.D., 2014. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO _a� ATTEST: � f^c,� rk (cL ra,:ik.Y _ , -�ouglafRademacher, Chair • Weld County Clerk to the // // J[ •ara Kirkmeyer, Pro-Tern Dept y Clerk to the Board �A Sean P. Conway APPROVED A RM: Mike Free Cep A-6U y Attorney liam F. Garcia Date of signature: &'5.14 2014-0268 LE0308 AMEND -WELD COUNTY OIL AND GAS LEASE (Small Tract) THIS AGREEMENT, made and entered into this 17th day of September 2012, by and between WELD COUNTY, COLORADO, a political subdivision of the State of Colorado acting by and through the Board of County Commissioners of the County of Weld, 1150 O Street, P.O. Box 758, Greeley, CO 80632, hereinafter called Lessor, and: Continental Resources, Inc. 63 Inverness Drive East, Suite 200 Englewood, CO 80112 hereinafter called Lessee. WITNESSETH, that Lessor, for and in consideration of the sum of $ 1815.00 , cash in hand paid, the receipt of which is hereby acknowledged, and the covenants and agreements hereinafter described, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom, oil and all gas of whatsoever nature or kind, with rights of way and easement for laying pipe lines, and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Weld, State of Colorado, described as follows, to wit: Tract 5: A Strip of land 20 feet wide adjacent and North of the present highway right-of-way, extending Westward approximately 5280 feet from the East boundary line of Section 24, to the West boundary line of said section Section 24 Township 8 North, Range 62 West of the 6th P.M., Weld County, Colorado: and containing 2.42 acres, more or less. 1. It is agreed that the lease shall remain in force for a term of three (3) years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then BM this lease shall continue in force so long as operations are being continuously prosecuted on the leased S premises or on acreage pooled therewith; and operations shall be considered to be continuously - prosecuted ii not more than ninety (90) days shall elapse between the completion or abandonment of one 8-- - well and the beginning of operations for the drilling of a subsequent well. It after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working ° operations within ninety (90) days from date of cessation of production or from date of completion of dry -0 a hole. If oil or gas shall be discovered and produced as a result of such operations; at or after the CS) expiration of the primary term of this lease, this lease shall continue in force so long as oil or gas is awl_y produced from the leased premises or on acreage pooled therewith. a,Y o v2 LL°�. 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees ir that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any or operations during the primary term. Lessee may at any time or times during or after the primary term ma mot surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to ax a Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as m t to the acreage surrendered. 01 2014-0268 crN Nmo ul v- C:\Users\kford\Desktop\O&G-LE0308-Diamond Resources\Small Tract Lease LE0308.doc n _ (Revised 1/2012) rom�� 3. In consideration of the premises the said Lessee covenants and agree to pay Lessor twenty percent (20%) of the proceeds received by Lessee, payable monthly, for the oil, gas and other hydrocarbons produced and saved from the leased premises. 4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to Lessor One Dollar per year per net mineral acre owned by Lessor and covered by this lease, such payment or tender to be made on or before the anniversary date of this lease next ensuing after the expiration of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of this lease. 5. If said Lessor owns less than the entire oil and gas fee simple estate in the above described lands, then the royalties (including any shut-in gas royalty) herein provided for shall be paid to the said Lessor only in the proportion which Lessor's interest bears to the entire oil and gas mineral fee simple estate. 6. Lessee shall have the right to use, free of cost or royalty, gas, oil and water produced on said land for Lessee's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 200 feet to any occupied building on said premises without the written consent of Lessor. 9. Lessee shall have the right at any time to remove all of Lessee's machinery and fixtures placed on said premises, including the right to draw and remove casing. 10. The rights of Lessor and Lessee hereunder may be assigned in whole, or in part, upon payment of a $25.00 fee and written consent of the Board of Weld County Commissioners, such consent shall not be unreasonably withheld. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then only with respect to payment thereafter made. No other kind of notice, whether actual or constructive, shall be binding upon Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner. Ali 11. Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production, as to all or any part of the land described herein SA and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the r mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the = production or oil and gas, or separately for the production or either, when in Lessee's judgment it is z. .! necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to mo v! such other land, lease or leases. Likewise, units previously formed to include formations not producing oil • or gas may be reformed to exclude such non-producing formations. The forming or reforming of any unit a T shall be accomplished by Lessee executing and filing of record a declaration of such unitization or o v�} reformation, which declaration shall describe the unit. Any unit may include land upon which a well has lio— ce v theretofore been completed or upon which operations for drilling have theretofore been commenced. + Production, drilling or reworking operations or a well shut in for want of a market anywhere on a unit vary r.." which includes all or a part of this lease shall be treated as if it were production, drilling or reworking Rot. operation or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein Z�"—'7 specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled 0 t royalties only on the portion of such production allocated to this lease; such allocation shall be that wmm� '- InN,a-- a1 ' C:\Users\kford\Desktop\O8G-LE0308-Diamond Resources\Small Tract Lease LE0308.doc rO sry VC a ,ME (Revised 1/2012) proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bear to the total number of surface acres in such unit. In addition to the foregoing, lessee shall have the right to unitize, pool or combine all or any part of the above described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to conform to the terms, conditions and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life or such plan or agreement. In the event that said above described lands or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee. 12. All express or implied covenants of this lease shall be subject to all Federal and State laws, executive orders, rules or regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such law, order, rule or regulation. 13. Lessor does not warrant title to the leased premises, but it shall, upon request, allow Lessee access to such abstracts and other title papers as it has in its files. Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands in the event of a default of payment by Lessor, and be subrogated to the rights of the holder thereof. 14. Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance or regulation. ON 15. Upon failure or default of Lessee to comply with any of the terms and provisions hereof ▪ including but not limited to the failure to comply with laws, rules and regulations covering Colorado oil and =ti gas operations, Lessor is hereby authorized upon notice and hearing, as hereinafter provided, to cancel this lease as to all of the leased land so claimed or possessed by Lessee hereunder. In the event of any -=' such default or failure, Lessor shall, before making any such cancellation, send to Lessee by certified ;t mail, to the post office address of said lessee as shown by the records of Lessor, a notice or intention to rc cancel for such failure or default, specifying the same, stating that if within forty-five (45) days from the m= date of mailing said notice, Lessee shall correct such failure or default, no cancellation will be made. If s if m3 ▪ such failure or default is not corrected with forty-five (45) days after the mailing of such notice, and ell' -Jo Lessee does not request a hearing on such notice within forty-five (45) days, this lease will terminate o v ▪ and be canceled by operation of the paragraph without further action by Lessor, or further notice to en al Lessee. waro:a= 16. All of the provisions of this lease shall be binding upon the heirs, personal s c v Y representatives, successors and assigns of Lessor and Lessee. a. m�3 o� c.". !SIC CNo CO m▪ MN c:\Users\kford\Desktop\O&G-LE0308-Diamond Resources\Small Tract Lease LE0308.doc (Revised 1/2012) 17. Lessee shall not conduct operations of any kind upon the surface of the lands herein described without the express written consent of Lessor, such consent shall not be unreasonably withheld. 18. Neither party shall be responsible for delays or failures in performance resulting from acts or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion, power failure, flood, earthquake or other act of God; war, revolution, civil commotion, terrorism, or acts of public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or any representative of any such government or legal body; or labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts. In such event, the party affected shall be excused from such performance (other than any obligation to pay money) on a day-to-day basis to the extent of such interference (and the other party shall likewise be excused from performance of its obligations on a day- to-day basis to the extent such party's obligations relate to the performance so interfered with). IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the CHAIR, BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF WELD, with the seal of the office affixed, and Lessee hass7siigned this agreement, the day and year first above written. ATTEST: CCcOl'�c�'ck Weld County Clerk to the Board BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ir • .. ; Dep 1 Clerk to the Bq- d6t 4O1 ir, ':oard of boun y Commissioners glas Rademacher Fie IAN 2 9 2014 FY ets ' SSE By: tAkc Title: d STATE OF COLORADO n ) ss o y COUNTY OF Aram) arc _ ) The foregoing instrument was acknowledged before me this I) day of 1 l C�c 7Gnv�ry 20�, by c P Car may nil: Witness my hand and official seal. k y° III o LLU-a e0 Notary Public` 10 �C Sta My Commission Expires: /� \ �r()stalk ti <6� ockiol AO a • g .) BRENDA L. SALE crNP I/ I i ilg. dVre i / /1 Notary Public r- — J3 B V�3;IV II , a (/' State of Colorado flow c:\Users\kford\Desktop\O&G-LE0308-Diamond Resources\Small Tract Lease LE0308.doc • Karla Ford 1 From: Karla Ford alatif Sent: Tuesday,January 14, 2014 2:34 PM �r�Ar��(j {„�, To: 'Bonnie Janssen' 5u_J l -1712d- Attachments: Subject: RE. O&G Lease Amendment rTy�J7/ Small Tract Lease LE0308.pdf Bonnie, Thanks for your patience. I have attached an "Amended Lease" which has the correct company title of Continental Resources, Inc and also the correct legal. We put the original dates, fees, etc. We just need to have your end re-sign and notarize and mail back to my attention. As soon as I receive it, we will put it on the Commissioners' Agenda. Then it will be recorded and a recorded copy will be mailed back to you. � Please let me know if you have any questions. Thank you! Penthr /y� "'/ Karla Ford / Deputy Clerk to the Board 1150 O Street/P.O. Box 758 Greeley, CO 80632 tel: (970)336-7215 X4228 ,x. r.. te r ' CC NT , Confidentiality Notice:This electronic transmission and any attached documents or other writings ore 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: Bonnie Janssen [mailto:bonnie@diamondnd.com] Sent: Saturday, January 11, 2014 12:33 PM To: Karla Ford Subject: RE: O&G Lease Amendment Karla Diamond Resources is the leasing agent for Continental Resources. Hope to hear from you soon. Sgv,v.Le)a vsseA„ Diamond Resources P. O. Box 1938 Williston, ND 58801 1-866-572-4523 From: Karla Ford [mailto:kford©co.weld.co.us] Sent: Friday, January 10, 2014 5:26 PM 1 To: Bonnie Janssen Subject: O&G Lease Amendment Bonnie, Thanks for your return call. I had a question for you before I send this over to our County Attorney for review. The letterhead we receive info for you is Diamond Resources, but on the agreement it states Continental Resources. What is the difference, why two different names. I will also try to get back with you next week after the Attorney looks at the file. Thanks for your help and I hope you have a great weekend! Karla Ford 2 Deputy Clerk to the Board 1150 O Street/P.O. Box 758 Greeley, CO 80632 tel: (970)336-7215 X4228 NN I, r = ; • Confidentiality Notice:This electronic transmission and any attached documents or other writings ore 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 ‘NR,spy D IAMON D RESOURCES REULIvED JAN 102014 January 6, 2014 WELD COUNTY COMMISSIONERS Board of County Commissioners PO Box 758, 1150 O Street Greeley, CO 80632 RE: Lease Amendment of Oil and Gas Lease Township 8 North, Range 62 West of the 6th P.M. Section X: Tract 5: A strip of land 20 feet wide adjacent and North of the present 2 highway right-of-way, extending Westward approximately 5280 feet from the East boundary line of Section 24, to the West boundary line of said section, Township 8 North, Range 62 West of the 6th P.M., containing 2.42 acres. Dear Commissioners: Please find enclosed for your review a Lease Amendment for your Oil and Gas Lease to add the Lessor, which was inadvertently left blank on the original lease. Please sign the enclosed Amendment in the presence of a Notary Public and return it to our office in the envelope provided. A copy is included for your files. Should you have any questions or need further information, please do not hesitate to call me toll free at 1-866-572-4523. Sincerely, DIAMOND RESOURCES CO. )0I- Bonnie Jannsen Landman BJ:mkh Ericl./Broncho South 179,534.667 63 Inverness Drive East, Suite 200 P.O. Box 1938 602 11th Street West 107 West Main Avenue, Suite 200 Englewood,CO 80112 Williston,ND 58801 Bismarck,ND 58501 (720)287-5660 (701)572-4523 Fax(701)572-1490 (701)751-2832 Fax(720)287-5666 Toll Free(866) 572-4523 Fax(701) 751-2838 Hello