Tract No. 4
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Tract No. 4
Auction has ended
8/8/2019 10:06 AM CDT / 9:06 AM MDT
8/15/2019 10:06 AM CDT / 9:06 AM MDT
Total Lease Cost at Highest Bid:
(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)
T16S, R55W 6th PM
Sec. 36: N2, SE
Tract No. 4
T16S, R55W 6th PM
Sec. 36: N2, SE
State Owns Surface
Rental/Acre (Per Year)
CO Application Fee
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:
- 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
- Addition of Paragraph 4(e)(vii) "Unmanned Aerial Systems (UAS)": Lessor's right to use UAS (otherwise known as drones) to inspect property
- Updated "Natural Gas Liquids", "Shut-in", and "Temporarily Abandoned" definitions
- Elimination of the six-months' royalty-free flaring provision
- Reduction of overriding royalty allowance to 3%
- Clarification regarding the requirement to obtain a Communitization Agreement to pool state trust minerals
- 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
- 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
- Insurance requirement update
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.
OG STIP 2- JOINT ESTATE WITH NO KNOWN BIOLOGICAL ISSUES
As of the effective date of the Lease, there are no known 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), on the leased land. Prior to surface access for operations and in connection with any Location Assessment for oil and gas operations, or the submittal of an Application for Permit to Drill (APD) with the Colorado Oil and Gas Conservation Commission (OGCC), Lessee shall consult with and obtain approval of the Lessor’s District Manager, or his designee, for operations, including without limitation, exploration activities, well siting and access, and facilities locations. In connection therewith, Lessee shall consult with CPW and CNHP representatives regarding appropriate design measures and best management practices (BMPs) to avoid and minimize adverse impacts to biological resources, species and habitats. Lessor’s conservation mandate may require Lessee’s compliance with site specific measures to address CPW and CNHP concerns relating to the siting of facilities and the implementation of BMPs to avoid, minimize and mitigate adverse impacts. Site specific requirements may include, but are not limited to: 1) restricted or prohibited surface occupancy, 2) noise limitations or mitigation measures, 3) seasonal operations restrictions, 4) biological resource mapping, 5) ground or surface water testing, 6) air quality testing and 7) adoption of a comprehensive soil management plan. Lessor does not waive any OGCC consultation requirements with the surface owner, and Lessee shall not seek a variance to any required consultation without the advance written approval of the Lessor. Without excluding other penalties or remedies available under this Lease or as provided by law, Lessor shall impose penalties, subject to the applicable Lease notice and cure rights, including Lease cancellation and fines of up to $10,000 per day, for any violation of this special stipulation or the resulting BMPs, in whole or in part, arising directly or indirectly from the use, occupation or control of the Leased Premises by Lessee, Lessee’s contractor or operator under this Lease. If Lessor determines any oil and gas operations pose a risk of immediate damage to public health, safety or welfare Lessor may order the immediate suspension of operations to investigate and remedy the issues.
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.
A 2% Buyer Premium, calculated as 2% of the total bonus plus rental, will be added to the cost of this lease.
VP, Government Resources
Managing Director, Government Resources
Global Markets Strategic Analyst
8/15/2019 8:41:06 AM