Elbert County Colorado Lease Offer

Oil and Gas Leasing Help
41

Conoco may not be back if Chesapeake is pushing hard to establish a large drilling play. I recomend you call a landman with Chesapeake named Jeff Hindmarsh and ask him what is happening with them in your area. See if they are offering leases. What have you got to loose. His # is 1-501-442-5986.

Don

Jerry Nolan said:

I think Conoco is back peddling on their offers now. They sent a lot of us out here letters and some of the neighbors even got verbal offers which seemed pretty high, but no one ever saw a lease in writing. Now when we call them back they give us excuses about how they are re-evaluating, working maps, etc. I think their just trying to string us along to keep us from signing with another company.
42

I have lands in Adams county and a friend from Church who lives in Elbert County who had a similar experience with Conoco. We had received a few interested parties and then some interest from Conoco, who said they had a good offer, as far as I could tell, and then recently I heard back from them saying they were updating their maps? Is this common? I have another offer that is not quite as good as what Conoco was saying, but I fear that if I wait any longer with Conoco then I might be left out to dry with these other companies. Has anyone else been in this situation? Also, I saw somewhere else on the board that there was a townhall meeting about frackturing in Elbert County? Does anyone have any information on this?

43

I can help you. I wouldn’t sign without knowing any more. there is a lot of information to take in. I can help if you like. Contact me through my profile.

Mateo Townley said:

Shell Oil Offer for Routt County, Colorado

We received an offer from Shell of $250/acre and 17.5% for 3 year lease with an option for 2 more years. This is for Routt CO, Township 5 North, Range 87 West, 6th P.M. Section 22:SW. And Shell says they need it by year end. (sounds a little like a used car salesman, but there could be a legitimate reason for needing this, from what I am reading on this site....)

Of course, I can wait it out and possibly negotiate a better deal, but the offer might also just disappear after the end of the year.

I can't afford an attorney, so can anyone give me information about the wisdom of signing this witout knowing any more than I do?? Is there any chance that there are other mineral owners in Routt County, Colorado in the same boat? Anyone interested in discussing to see if we could speak with a common voice and add strength to our negotiating position?

I appreciate any and all help.

Mateo

44

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Sec 16 - 6S-64W last month - that's Northeast Douglas County about 2 & 1/2 miles east of Parker, Colorado.

45

Jerry - Front Range recorded a lease showing it paid lease bonus in that amount?

46

That’s school lands at auction right?

47

Yes, $2200. per acre. It was some kind of "state owned" mineral rights- I don't have it in front of me right now - could be schools, county, or something.
48

Hi,


Be aware, if you sign your property mineral rights over that also means sand and or gravel. They can turn your property into a sand pit. This info is not to create fear, it is just the facts. Where did I get this info, from an oil and gas engineer


Jerry Nolan said:


Yes, $2200. per acre. It was some kind of "state owned" mineral rights- I don't have it in front of me right now - could be schools, county, or something.
49

Mineral Rights DO NOT include sand and gravel - those are “surface” rights.

Randy said:

Hi,


Be aware, if you sign your property mineral rights over that also means sand and or gravel. They can turn your property into a sand pit. This info is not to create fear, it is just the facts. Where did I get this info, from an oil and gas engineer


Jerry Nolan said:


Yes, $2200. per acre. It was some kind of "state owned" mineral rights- I don't have it in front of me right now - could be schools, county, or something.
50

According to the township index, 6s - 64w will put that section in Elbert county. I think that puts it on the SE corner of County Line Rd and Delbert , right? Let me know if I am totally off base here.

Jerry Nolan said:

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Sec 16 - 6S-64W last month - that's Northeast Douglas County about 2 & 1/2 miles east of Parker, Colorado.

51

It may not be Elbert County, but it's probably within about 2 miles. I was only provided with the sec, twp, range, and the bonus amount ($2200) - I don't have a township map to look at and I also don't know the royalty amount, the years term, or if there was a renewal. Someone else might be able to come up with more information on this. I read somewhere that all sections 16 and 32 throughout the State of Colorado were reserved to the state, but don't know if that's reliable. If someone else comes up with more details on this deal or others, I hope they will post it for the rest of us. Thanks JN


Amy Miller said:

According to the township index, 6s - 64w will put that section in Elbert county. I think that puts it on the SE corner of County Line Rd and Delbert , right? Let me know if I am totally off base here.

Jerry Nolan said:

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Sec 16 - 6S-64W last month - that's Northeast Douglas County about 2 & 1/2 miles east of Parker, Colorado.

52

Dear Mr. Nolan,


Per the Land Ordinance of 1785 (as amended), Section 16 was set aside for education purposes in most states, referred to generally as the School Section. In the western states, Section 36 was set aside, also.


Jerry Nolan said:

I read somewhere that all sections 16 and 32 throughout the State of Colorado were reserved to the state, but don't know if that's reliable.

53

I live in section 32 and that is certainly not the case with our section. . .

Jerry Nolan said:

It may not be Elbert County, but it's probably within about 2 miles. I was only provided with the sec, twp, range, and the bonus amount ($2200) - I don't have a township map to look at and I also don't know the royalty amount, the years term, or if there was a renewal. Someone else might be able to come up with more information on this. I read somewhere that all sections 16 and 32 throughout the State of Colorado were reserved to the state, but don't know if that's reliable. If someone else comes up with more details on this deal or others, I hope they will post it for the rest of us. Thanks JN


Amy Miller said:

According to the township index, 6s - 64w will put that section in Elbert county. I think that puts it on the SE corner of County Line Rd and Delbert , right? Let me know if I am totally off base here.

Jerry Nolan said:

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Sec 16 - 6S-64W last month - that's Northeast Douglas County about 2 & 1/2 miles east of Parker, Colorado.

54

YES,that section is in Elbert between CR29 and CR 21 North of Singing Hills(166) on Running Creek Ranch. Sections 16 are set aside for the state. And thanks to Donn for correcting the "sand and gravel" misconception. The lease will identify what "minerals" are being sought after. Always limit the lease to oil and/or gas.

Don

Amy Miller said:

According to the township index, 6s - 64w will put that section in Elbert county. I think that puts it on the SE corner of County Line Rd and Delbert , right? Let me know if I am totally off base here.

Jerry Nolan said:

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Sec 16 - 6S-64W last month - that's Northeast Douglas County about 2 & 1/2 miles east of Parker, Colorado.

55

FYI, Renegade Oil has applied for drilling permit in Section 10 of Township 6S Range 29W. Will anxiously be awaiting the actual drilling and what they find. Mike M

56

RedSky Land, LLC is leasing for Chesapeake Exploration.

57

Actually, the 320 Colorado State mineral acres that went for $2200 per acre in the state auction held Nov. 18th, are in Douglas County. The legal description is Township 6, Range 65 West, Section 16. It is located between Buckboard Rd/Delbert and E. Parker Rd/Delbert, then 1 mile to the west of Delbert Rd. The terms of the lease are on the Colorado State Land Board website http://trustlands.state.co.us/Sections/Minerals/Pages/Auctions.aspx as the lessees have to use the state’s lease (the lease is not on the page I just posted, but if you look around on the website, you can find it). Bonus is usually more for state lands because royalty is only 1/6th and they don’t have as much liability with the state as with individual homeowners, but does definitely set a price range in the area.

So far, no one seems to know who Front Range Development represents. I have not seen any other lands leased by that company other than state lands.

The Renegade well is vertical only, not horizontal and they are interested in the D and J Sands. However, they may do some testing in the Niobrara. They have a couple of others in Arapahoe County.

If anyone has been contacted by an oil company in the last month other than Chesapeake, it would be helpful information for the people in the area. Chesapeake doesn’t seem to want to negotiate with smaller land owners, nor deal with landowner representatives, plus they use a 90 business day payment order (4 1/2 months), now with language that states “a prior unsubordinated mortgage shall constitute a title defect and is basis to render title unacceptable.” Not sure why anyone would sign that.

Debbie

Don Jones said:

YES, that section is in Elbert between CR29 and CR 21 North of Singing Hills(166) on Running Creek Ranch. Sections 16 are set aside for the state. And thanks to Donn for correcting the “sand and gravel” misconception. The lease will identify what “minerals” are being sought after. Always limit the lease to oil and/or gas.

Don

Amy Miller said:

According to the township index, 6s - 64w will put that section in Elbert County. I think that puts it on the SE corner of County Line Rd and Delbert, right? Let me know if I am totally off base here.

Jerry Nolan said:

According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Section 16 - 6S-64W last month - that’s Northeast Douglas County about 2 1/2 miles east of Parker, Colorado.

58

Debbie you wrote:

“Chesapeake doesn’t seem to want to negotiate with smaller land owners, nor deal with landowner representatives, plus they use a 90 business day payment order (4 1/2 months), now with language that states “a prior unsubordinated mortgage shall constitute a title defect and is basis to render title unacceptable.” Not sure why anyone would sign that.”

Are you referring to LANDOWNERS or mineral owners? As for the payment order - if you warrant title in the lease, you can demand a check at signing…forget the bank draft. If you are talking about mineral interest in your last sentence, a “mortgage” could be a lien…foreclosure in process…etc. One cannot lease what one does not own = therefore a title defect. Chesapeake is obviously not going to the County Treasurer to see what liens might have been filed, so this may well be their “out.”

59

I am referring to both landowner and mineral owner. I stated it that way because I was referring to small acreage landowners. Most of the homeowners in the area own their mineral rights. I read the statement as mortgage. The majority of homeowners/mineral owners in the area have a mortgage. Not many have their homes paid off. I do believe the statement is there for an “out”.

mahoney said:

Debbie you wrote:

“Chesapeake doesn’t seem to want to negotiate with smaller land owners, nor deal with landowner representatives, plus they use a 90 business day payment order (4 1/2 months), now with language that states “a prior unsubordinated mortgage shall constitute a title defect and is basis to render title unacceptable.” Not sure why anyone would sign that.”

Are you referring to LANDOWNERS or mineral owners? As for the payment order - if you warrant title in the lease, you can demand a check at signing…forget the bank draft. If you are talking about mineral interest in your last sentence, a “mortgage” could be a lien…foreclosure in process…etc. One cannot lease what one does not own = therefore a title defect. Chesapeake is obviously not going to the County Treasurer to see what liens might have been filed, so this may well be their “out.”

60

Is GFL (Lario) out of the mix? I think I did hear that they quit leasing for the time being. I believe they have begun some seismic down south recently (Elbert County I think), and we got a letter stating that Anadarko in conjunction with Lario would be seeking to do the seismic on our property (Arapahoe/Elbert County line) very soon. Lario filed for permits in northern Arapahoe County just a few days ago to do test wells. So, I think if the news from the seismic and the test wells are good, things should further pick up in the Douglas County/Elbert area.

Debbie said:

Actually, the 320 Colorado State mineral acres that went for $2200 per acre in the state auction held Nov. 18th, are in Douglas County. The legal desc. is Township 6, Range 65 West, Section 16. It is located between Buckboard Rd/Delbert and E. Parker Rd/Delbert, then 1 mile to the west of Delbert Rd. The terms of the lease are on the Colo. State Land Board website http://trustlands.state.co.us/Sections/Minerals/Pages/Auctions.aspx as the lessees have to use the state’s lease (the lease is not on the page I just posted, but if you look around on the website, you can find it). Bonus is usually more for state lands because royalty is only 1/6th and they don’t have as much liability with the state as with individual homeowners, but does definitely set a price range in the area.

So far, no one seems to know who Front Range Development represents. I have not seen any other lands leased by that company other than state lands.

The Renegade well is vertical only, not horizontal and they are interested in the D and J Sands. However, they may do some testing in the Niobrara. They have a couple of others in Arapahoe County.

If anyone has been contacted by an oil company in the last month other than Chesapeake, it would be helpful information for the people in the area. Chesapeake doesn’t seem to want to negotiate with smaller land owners, nor deal with landowner representatives, plus they use a 90 business day payment order (4 1/2 months), now with language that states “a prior unsubordinated mortgage shall constitute a title defect and is basis to render title unacceptable”. Not sure why anyone would sign that.

Debbie

Don Jones said:

YES, that section is in Elbert between CR29 and CR 21 North of Singing Hills(166) on Running Creek Ranch. Sections 16 are set aside for the state. And thanks to Donn for correcting the “sand and gravel” misconception. The lease will identify what “minerals” are being sought after. Always limit the lease to oil and/or gas.

Don

Amy Miller said: According to the township index, 6S - 64W will put that section in Elbert County. I think that puts it on the SE corner of County Line Rd and Delbert, right? Let me know if I am totally off base here.

Jerry Nolan said: According to public records: Front Range Development (a Texas based company) paid $2,200 per acre for 320 acres in the south 1/2 of Section 16 - Township 6S, Range 64W last month - that’s Northeast Douglas County about 2 1/2 miles east of Parker, Colorado.