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Tract No. 74
TRMS1660

Larimer County, CO
Colorado State Land Board Lease Sale, February 21, 2019

AUCTION SOLD

Registration Status:

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Your Bid Status:

You have not bid on this lot

Tract:

Tract No. 74
TRMS1660

Gross Acres:

280.00

Net Acres:

280.00

Time Remaining:

Auction has ended

Start Time:

2/14/2019 12:26 PM CST / 11:26 AM MST

End Time:

2/21/2019 12:26 PM CST / 11:26 AM MST

Your Bid:

-

Highest Bid:

$102/acre

Starting Bid:

$0/acre

Bid Increment:

$1

Total Lease Cost at Highest Bid:

$29,945.20
(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)

Legal Description:

Tract Details

Tract No.

Tract No. 74
TRMS1660

County, State

Larimer, CO

Legal Description

T5N, R68W 6th PM
Sec. 16: N2S2, S2SW, SWSE

Gross Acres

280.00

Net Acres

280.00

State Owns Surface

No

Royalty Rate

20%

Rental/Acre (Per Year)

$2.50

CO Application Fee

$100.00

Buyer Premium

2.00%

Lease Terms and Conditions

Purchase price includes the lease bonus and 1st year rental and buyer's premium. Buyer will be responsible for paying rental payments for years 2 through 5.

Data represented on these maps is for REFERENCE USE ONLY and is not suitable for legal, engineering, or surveying purposes. Neither Colorado nor EnergyNet.com shall be liable for any direct, indirect or consequential damages to any party arising out of or in connection with the use of data on these maps.

There is no assurance that there is any potential for production on any tract offered for leasing by the State Board of Land Commissioners.

The State Land Board revised the oil and gas lease in April 2018 - here are some highlights of some of the changes to the oil and gas lease:

  1. Addition of Paragraph 4(d) "Land Board Policies, Directives and Schedules": Lessee's responsibility to be aware of and comply with all published Board Policies
  2. Addition of Paragraph 4(e)(vii) "Unmanned Aerial Systems (UAS)": Lessor's right to use UAS (otherwise known as drones) to inspect property
  3. Updated "Natural Gas Liquids", "Shut-in", and "Temporarily Abandoned" definitions
  4. Elimination of the six-months' royalty-free flaring provision
  5. Reduction of overriding royalty allowance to 3%
  6. Clarification regarding the requirement to obtain a Communitization Agreement to pool state trust minerals
  7. Revision of Shut-in Wells Paragraph: shut-in is permitted for lack of market only, limits shut-in period to two (2) years, requires payment of shut-in royalty within 90 days of shutting-in a lease, and clarifies plugging and abandonment of a well will end shut-in period
  8. Inclusion of a new "Temporarily Abandoned Wells and Mechanical Delays" paragraph permitting 60 days to repair a well with extensions to be granted by Staff

Click here to view the updated lease form.

Lease Royalty Rate Information

Colorado State Land Board oil and gas leases will be initially offered at a 20% royalty rate. If a lease does not sell at auction, it will be available at the next subsequent auction at a 18.75% royalty rate. If a tract is unsold at the 18.75% rate, it will be placed back into the State Land Board inventory and can be nominated for future auctions starting at the 20% royalty rate. For questions about this process please contact Catie Stitt at 303-866-3454 ext. 3326.

Lease Stipulations

OG STIP 3- SEVERED ESTATE WITH BIOLOGICAL ISSUES

Lease contains Colorado Parks & Wildlife (CPW) mapped High Priority Habitat (HPH) and/or occurrences of Federally-listed Endangered, Threatened, or Candidate wildlife or plant species as mapped by Colorado Natural Heritage Program (CNHP). Lessee must notify Lessorís District Manager prior to surface access and proposed surface occupancy and in connection with any proposed oil and gas operations, including, without limitation, the submittal of a Location Assessment or an Application for Permit to Drill (APD). Lessee is encouraged to notify CPW and CNHP in connection with the required surface owner notice.

Successful Bidder Notification

After all auctions have closed, the successful bidder will be notified via email with closing instructions, including total amount due.

Payment must be made within two business days.

Buyer Premium

A 2% Buyer Premium, calculated as 2% of the total bonus plus rental, will be added to the cost of this lease.

Colorado State Land Board Points of Contact

Minerals Director
Christel Koranda

Email
Christel.Koranda@state.co.us

Office
(303) 866-3454 ext 3321


Oil and Gas Specialist
Catie Stitt

Email
Catie.Stitt@state.co.us

Office
(303) 866-3454 ext 3326

EnergyNet Points of Contact

VP of Government Lease Sales
Gus Rivero

Email
Gus.Rivero@energynet.com

Office
(806) 463-3616


Manager of Government Lease Sales
Brandon Savage

Email
Brandon.Savage@energynet.com

Office
(806) 463-3621


Government Lease Sales Analyst
Heather Fugger

Email
Heather.Fugger@energynet.com

Office
(806) 463-3619

Bid History (Top 10)

Bidder

Placed

Amount

Bidder #25

2/21/2019 12:23:26 PM

$102

Bidder #32

2/21/2019 12:18:02 PM

$101

Bidder #20

2/21/2019 8:31:22 AM

$2

Bidder #25

2/20/2019 10:44:44 AM

$1