ORDINANCE NO. 2015-01
AN ORDINANCE APPROVING A PAID-UP OIL AND GAS LEASE WITH NOBLE ENERGY, INC.
WHEREAS, the Board of Trustees is authorized by C.R.S. § 31-15-713(1)(c) to lease real estate owned by the municipality when deemed by the Board of Trustees to be in the best interest of the Town; and
WHEREAS, the Board of Trustees is authorized by C.R.S. § 31-15-714 to lease real estate owned by the municipality for oil and gas exploration, development, and production purposes when deemed by the Board of Trustees to be in the best interest of the Town; and
WHEREAS, there has been proposed a Paid-Up Oil and Gas Lease between the Town of Keenesburg and Noble Energy, Inc. for the purpose of prospecting, drilling, mining, operating for and producing oil and gas associated with certain Town-owned property; and
WHEREAS, the term of the lease is for five (5) years and as long thereafter as oil and gas is produced in paying quantities; and
WHEREAS, such lease is subject to the requirement that the lessee and its successors and assigns shall not enter upon or use the surface of the leased premises for conducting any surface or drilling operations under the lease, which requirement is a material consideration of the lease and the Board’s approval thereof; and
WHEREAS, the royalty proposed to be paid to the Town pursuant to the lease exceeds the minimum requirements of C.R.S. § 31-15-714, and the proposed lease complies with the other applicable provisions of said statute; and
WHEREAS, the Board of Trustees has determined that the proposed lease is in the best interests of the Town and desires to enter into such agreement with Noble Energy, Inc.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF KEENESBURG, COLORADO:
Section 1. The proposed Paid-Up Oil and Gas Lease (the “Agreement”) between the Town of Keenesburg and Noble Energy, Inc. for the purpose of prospecting, drilling, mining, operating for and producing oil and gas associated with certain Town-owned property as described in said Agreement is hereby approved in essentially the same form as the copy of such Agreement accompanying this ordinance.
Section 2. The Mayor is authorized to execute the Agreement, except that the Mayor is hereby granted the authority to negotiate and approve such revisions to said Agreement as the Mayor determines are necessary or desirable for the protection of the Town, so long as the essential terms and conditions of the Agreement are not altered.
Section 3. The Mayor and Town staff are further authorized to do all things necessary on behalf of the Town to perform the obligations of the Town under the Agreement, and to execute and deliver any and all documents necessary to effect the lease upon the terms and conditions of said Agreement, upon lessee’s compliance with its obligations thereunder and all terms and conditions of said Agreement.
Section 4. If any article, section, paragraph, sentence, clause, or phrase of this ordinance is held to be unconstitutional or invalid for any reason, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The Board of Trustees hereby declares it would have passed this ordinance and each part or parts hereof irrespective of the fact that any one part or parts be declared unconstitutional or invalid.
Section 5. All other ordinances or portions thereof inconsistent or conflicting with this ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict.
INTRODUCED, READ, ADOPTED, APPROVED AND ORDERED PUBLISHED IN FULL this 16th day of March, 2015.
TOWN OF KEENESBURG, COLORADO
Danny Kipp, Mayor
Debra L. Chumley, Town Clerk
3/11/2015 11:27 AM [kmk] R:KeenesburgOrdinancesOil and Gas Lease Noble 20150116.doc