Tract 10; TRMS2806

Adams County, CO
Colorado State Land Board Oil, Gas, and Helium Lease Sale, May 18, 2023

SOLD

Property Schedule

Due Diligence Began 5/1/2023
Bidding Started 5/11/2023
Bidding Ended 5/18/2023 10:18 AM
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Tract 10; TRMS2806
640.00
640.00
Auction has ended
5/11/2023 9:18 AM MDT / 10:18 AM CDT
5/18/2023 9:18 AM MDT / 10:18 AM CDT
-
$2,457/acre
$0/acre
$1
$1,605,661.60
(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)
Tract Details
Tract No.
Tract 10; TRMS2806
County, State
Adams, CO
Legal Description
T3S, R66W
Sec. 36: ALL
Gross Acres
640.00
Net Acres
640.00
State Owns Surface
Partial
Royalty Rate
20.00%
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.

Click here to view the 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
  • 1. OG STIP 1- JOINT 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). 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.
  • 3. OG STIP 3- SEVERED ESTATE WITH KNOWN BIOLOGICAL ISSUES: Lease contains Colorado Parks and 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 Lessor’s 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.
  • B.1 HISTORICAL, PREHISTORICAL AND ARCHAEOLOGICAL RESOURCES (FEB, MAY 2023) This Stipulation shall replace in its entirety Paragraph 40(j) of the Lease. Under no circumstances may any person injure, destroy, disturb, mar, appropriate, collect, remove, alter, or excavate any historical, prehistorical or archaeological site or resource (collectively, “cultural resources”) on state lands. Discovery or indication of cultural resources shall be immediately brought to the attention of the Lessor and the State Archaeologist. Lessee shall comply with the requirements of C.R.S. § 24-80-401 through 411, as the same may be amended from time to time. Prior to any surface disturbance or before submitting an Application for a Permit to Drill (“APD'') or a spacing application, Lessee shall arrange for a Class III archaeological survey of all sites subject to surface development. The surveyor shall provide the completed survey, including site management recommendations, to Lessor and the Office of Archaeology and Historical Preservation (“OAHP”). If the Class III survey or OAHP identifies any cultural resources on the Leased Lands, Lessor shall consult with OAHP and determine whether any specific site management activities will be required. Lessor, in its sole and absolute discretion, may impose additional requirements, conditions, restrictions, or stipulations under this Lease to protect or preserve cultural resources. Lessee acknowledges that Lessor is under no obligation to refund any bonus payment, rental or fee paid under this Lease.
  • B.3 LONG TERM NON DEVELOPMENT AGREEMENT (LT 3451)- EXISTING AGREEMENT: This lease is subject to a Long Term Agreement to Restrict Mineral Development LT 3451, recorded on March 28, 2003, at Reception No. C1116614, all amendments to LT 3451, recorded in the county now or in the future, and all conversions of LT 3451 into No Surface Occupancy Agreements, recorded in the county now or in the future, as may be applicable with respect to certain lands covered by LT 3451 (the “Development Restrictions”). The Development Restrictions require, among other terms, no surface occupancy for the acreage listed, but allow for the development of oil and gas under the property. Therefore, there shall be no surface occupancy for the entire legal description originally described in LT 3451. Lessee shall not enter upon or use the surface of the lands originally subject to LT 3451 for conducting any surface, drilling or other operations, and Lessee shall comply with the terms of the applicable Development Restrictions as provided therein.
    This lease will require the acceptance and execution of multiple forms of Addendum and Supplemental Agreement(s), attached hereto and incorporated as Exhibit(s) to oil and gas lease No. _____________

Seller Acquisition Agreement(s)

The Colorado State Land Board forms associated with Oil and Gas leasing may be found at https://slb.colorado.gov/lease/oil-gas/.

Lease Notice(s)

This tract is subject to the following leases:

  • NSO Lease- 111921
  • NSO Lease - 115398
  • Amended Long-Term Non-Development Lease 102741
This lease will not be valid until all supplemental agreements (Attachment 1 ) between surface owners and the winning bidder are signed. Please contact the State Land Board with questions about this concurrent use.
Notice(s)

Any Colorado State Land Board lease obtained at the May 2023 Lease Auction will be issued electronically via DocuSign for signature. If you have any questions on this process, please contact Sherry Lee at 303-866-3454 x 3322 or sherry.lee@state.co.us.

Successful Bidder Notification and Buyer Premium

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.

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 Point of Contact

Government Resources

Email
government@energynet.com

Office
(877) 351-4488

Bid History (All)

Bidder

Placed

Amount

Bidder #59

5/18/2023 10:00:30 AM

$2,457

Bidder #345

5/18/2023 10:17:54 AM

$2,456

Bidder #59

5/18/2023 10:00:30 AM

$2,255

Bidder #345

5/18/2023 10:16:48 AM

$2,254

Bidder #59

5/18/2023 10:00:30 AM

$1,635

Bidder #345

5/18/2023 10:14:08 AM

$1,634

Bidder #59

5/17/2023 2:39:16 PM

$502

Bidder #354

5/17/2023 9:52:16 PM

$501

Bidder #59

5/17/2023 2:39:16 PM

$401

Bidder #354

5/17/2023 9:51:55 PM

$400

Bidder #59

5/17/2023 2:39:16 PM

$301

Bidder #354

5/17/2023 9:51:33 PM

$300

Bidder #59

5/17/2023 2:39:16 PM

$201

Bidder #354

5/17/2023 9:51:16 PM

$200

Bidder #59

5/17/2023 2:39:16 PM

$2

Bidder #354

5/17/2023 11:11 AM

$1

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