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HomeMy WebLinkAboutC12-045 State Land Board Restrict Mineral Development SLB 241 -4 09/2005 STATE OF COLORADO STATE BOARD OF LAND COMMISSIONERS Department of Natural Resources LONG -TERM AGREEMENT TO RESTRICT MINERAL DEVELOPMENT NO. LT 3507 THIS AGREEMENT, dated this 1 day of February, 2012, is made and entered into by and between the STATE OF COLORADO, acting by and through the STATE BOARD OF LAND COMMISSIONERS, hereinafter called the State and Eagle County, by and through the Board of County Commissioners, Post Office Box 850, Eagle, CO 81631, hereinafter called the surface owner: WITNESSETH WHEREAS, the surface owner has applied for a mineral development restriction covering all minerals* underlying the land described below and has paid a filing fee in the amount of $ 20.00; and WHEREAS, said application has been approved by the State and is hereby made a part hereof; and WHEREAS, the surface owner is the record owner of the surface interest of the land covered hereby, or is the designated agent or trustee for the record owner or owners (proof of said ownership to be furnished at the State's request); and WHEREAS, to protect the surface owner, the surface owner desires to acquire from the State an agreement to restrict the development of the mineral estate owned by the State; and THEREFORE, for and in consideration of the premises, the State covenants and agrees that it will not lease, or cause to be developed, any and all minerals owned by the State except as described herein in the following land, situated in the County of Eagle, State of Colorado, more particularly described as follows: ACRES SUBDIVISION SEC.TWP.RGE. PATENTS 17.13 Fractional portion of Lots E & F,Tract 50 8 2S 83W 8021 Fractional portion of Lots D & G, Tract 50 9 2S 83W Fractional portion of Lot N, Tract 50 16 2S 83W as further described in Exhibit A containing 17.13 acres, more or less FUND: School (NOTE: The State assumes no responsibility for the accuracy of descriptions furnished by the surface owner nor does it admit any liability for loss or damage due to inaccuracy on the surface owner's part in describing the land involved.) *See Item 8, Protection from Offset Drainage. Subject to the following existing mineral leases: None 1. TERM -- The term of this agreement shall be ninety -nine (99) years from the hour of twelve o'clock noon on the date hereof, to the hour of twelve o'clock noon on February 1, 2111. 2. RENTS -- The surface owner shall pay to the State advance rental of Five thousand three hundred forty-six and no /100 dollars, ($5,346.00) computed at the rate of $3.00 per acre, or fraction thereof, per year for the term of 99 years of the lands covered hereby. 3. NON- DEVELOPMENT BONUS -- The surface owner shall pay to the State on the date of execution of this agreement a non - development bonus of NA dollars ($ ), in addition to the rentals provided for in this agreement. This bonus, based on the value of the minerals as set by the State, is a one -time payment. Page 1 of 3 4. PENALTIES -- A penalty shall be imposed for, but not limited to, late payments, improper payments, violation of any covenant of this lease, or false statements made to the State. Penalties shall be determined by the State and may be in the form of, but not limited to, interest, fees, and fines. 5. SURRENDER -- The surface owner may at any time with the written consent of the State, surrender and cancel this agreement insofar as the same covers all or any portion of the land herein, provided that this surrender clause shall become inoperative immediately and concurrently with the institution of any suit in any court of law by the surface owner, the State, or any assignee of either to enforce this agreement or any of its terms, express or implied. If this agreement is terminated for any reason, no rental or bonus refund shall be made, nor will rental or bonus be transferred or credited in any way to another account. All paid up rental and bonus shall be forfeited unless otherwise agreed to by the State. 6. RECEIPT FOR PAYMENTS -- This agreement shall not be in effect until the State has received cash or the cash proceeds of any check tendered in payment for fees, bonus, or rental. All payments shall be made on or before the date due and any default may subject this agreement to cancellation as set out in Paragraph 15. 7. TRANSFER AND ASSIGNMENT -- The parties expressly agree that the mineral development restrictions set forth in this agreement run with the land, and shall be binding upon all subsequent owners of all or any portion of the land covered hereby. If a portion of the subject surface estate is sold or transferred the State upon request shall be provided with a copy of the executed assignment and transfer document. If the surface owner desires to transfer an interest in this agreement to a successor, and an assignment of this agreement is approved by the State, which approval shall not be unreasonably withheld, conditioned or delayed, a new agreement shall be issued to the assignee covering the assigned land, containing the same terms and conditions as this agreement and limited as to terms as this agreement is limited, and the assignor shall be released and discharged from all further obligations and liabilities as to that portion so assigned. An assignment shall not extend the term of this agreement. Notwithstanding the foregoing, failure of the assignor to assign this agreement upon sale or transfer of the surface shall not negate any portion of this agreement. 8. PROTECTION FROM OFFSET DRAINAGE -- In case of offset drainage the surface owner will be offered an oil and gas lease and will be required to develop any and all oil or gas underlying this surface or, in lieu of drilling, pay a in -lieu royalty based on technical information and set by the Board. 9. NO RIGHT TO DEVELOP MINERALS -- Except as expressly set forth herein, this agreement does not give the surface owner any authority to explore for, prospect, develop, extract or use any minerals associated with the mineral estate of the State. 10. INDEMNIFICATION OF THE STATE — To the extent permitted by law, the surface owner agrees to hold the State harmless for, and to indemnify the State against any and all manner of claims arising or to arise from this agreement or the State's mineral estate whether from soil or surface subsidence or from any other cause. 11. UNIT AGREEMENTS -- In the event the State permits the lands herein to be unitized or pooled with other lands, the terms of this agreement shall be modified to conform to such unit agreement. 12. GOVERNMENT CONTROL -- Any matter over which the United States Government assumes exclusive control is exempted from any of the provisions of this agreement. 13. EXTENSION -- Any request for an extension of the term of this agreement will not be considered prior to the last year of the term. All requests must be in writing. The granting of an extension will be at the option of the State. 14. COMPLIANCE WITH LAW -- Nothing in this agreement shall be construed as a waiver by the State of any right or remedy given to it by law for the administration of State -owned minerals. 15. FORFEITURE -- Upon failure or default of the surface owner or its assignee to comply with any of the provisions or covenants hereof, the State is hereby authorized to cancel this agreement, and such cancellation shall extend to, and include, all rights hereunder as to the whole of the tract so claimed or possessed by the surface owner or its assignee so defaulting, but shall not extend to nor affect the rights of any surface owner or approved assignee claiming land separated from this agreement by assignment; provided, that in the event of any such default or failure to comply with any of the tenns and conditions hereof, the State shall, before any such cancellation may be made, send by certified mail to the surface owner or assignee so defaulting, to the post office address of the surface owner or assignee, as shown by the records of the State, a notice of intention to cancel for such default, specifying the same, and if within thirty (30) days from the date of mailing said notice, the surface owner or assignee shall have paid all rents or bonuses in default, and shall have begun in good faith to correct such other default as may have been specified, and shall thereafter diligently prosecute the correction of such default, there shall not be a cancellation therefor. If such default is not corrected, or correction thereof is not begun in good faith as hereinabove required, Page 2 of 3 within thirty (30) days after the mailing of such notice, this agreement will terminate and be cancelled by operation of this paragraph without further action by the State, or further notice to the surface owner. 16. FALSE STATEMENTS -- Misrepresentation or false statements on the part of the applicant or surface owner, or failure to comply with any of the conditions set out in this agreement or in the application which is a part hereof, may subject this agreement to cancellation by the State. 17. CONDEMNATION -- If the State's mineral estate shall be taken in any condemnation proceeding, this agreement shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to the State. If only a portion of the mineral estate is taken by condemnation, the State may, at its option, terminate this agreement or terminate only that portion of the agreement covering the mineral estate so taken. 18. SUCCESSORS CLAUSE -- The benefits and obligations of this agreement shall inure to and be binding upon the heirs, legal representatives, successors or assigns of the surface owner. IN WITNESS WHEREOF, The parties hereto have executed the foregoing, the same to be effective as of the day and year first above written. STATE BOARD OF LAND COMMISSIONERS Recommended: Timothy J. Kelly, Minerals Leasing Mgr. Pete Milonas, Minerals Director SURFACE OWNER Eagle County, Colorado K 3 t MO J1 e,ot ATTEST State of Colorado County of Eagle t f The foregoing instrument was acknowledged before me this 1 day of�1 ) , l by . ' • : " ' 1-1 IU Q1NTi N v i ' wAi∎ zi2.. as being authorized to execute same. (SEAL play ", ,.7= dl- Notary Public t � ` a� My Commission Expires -3 / 4 ) 1 tom' NN COMMISSION EXPIRES X24/209 � ATTEST State of Colorado County of Denver The foregoing instrument was acknowledged before me this day of , , by Pete Milonas, Minerals Director as being authorized to execute same. (SEAL) Notary Public My Commission Expires Page 3 of 3 ' 05/19/2011 9:00:53 AM C� Cljttment No.: 454 H0308831 060 - MH1 Exhibit "A" Attached Legal Description A parcel of land in Lots E and F in Section Eight, and Lots D and G in Section Nine, of the State Subdivision of Tract 50, Township 2 South, Range 83 West of the Sixth Principal Meridian, in Eagle County, State of Colorado. The North boundary of said Parcel being that part of North boundary of said Tract 50 lying between the centerline of the Denver and Salt Lake Western Railroad Right of Way No. 602 -6 and the Colorado Department of Highways Right of Way No. being 1499 -14; The Easterly boundary of said parcel being the centerline of the Colorado Department of Highways Right of Way No. 1499 -14; the Westerly boundary of said Tract being the centerline of the Denver and Salt Lake Western Railroad Right of Way No. 602 -6; and the Southerly boundary of said parcel being the North line of a parcel of land common to both Rights of Way No. 1499 -14 and 602 -6 and extended Northeasterly to the centerline of the Colorado Department of Highway Right of Way No. 1499 -14 and also being extended Southwesterly to the centerline of the Denver and Salt Lake Western Railroad Right of Way No. 602 -6. The exterior boundary of said parcel being more particularly described as follows: Beginning at a point on the North boundary of said Tract 50, which point is the point of intersection of the centerline of said railroad right of way and the North boundary of said Tract 50, and bears East a distance of 99.3 feet from the Northwest corner of said Tract 50, thence East along the North boundary of said Tract 50 a distance of 923.69 feet, more or less, to the intersection of the centerline of said highway right of way and the North boundary of said Tract 50, thence South 01 degree 14 minutes East along the centerline of said highway right of way a distance of 580.8 feet to a point of spiral curve; thence along a spiral curve to the left, (being the centerline of said highway) having a Delta of 5 degrees, for a distance of 200 feet to a point of simple curve, thence along the arc of a simple curve to the left (being the centerline of said highway right of way), having a delta of 13 degrees 49 minutes and a radius of 1,146 feet, for an arc distance of 276.3 feet to a point of spiral curve; thence along a spiral curve to the left (being the centerline of said highway right of way), having a delta of 5 degrees for a distance of 200 feet to a point of tangent; Thence South 25 degrees 03 minutes East along the centerline of said Highway right of way, a distance of 48.94 feet, more or less, to a point of intersection of the centerline of said highway right of way with the Northeasterly extended boundary of a parcel of land which is covered by both Railroad Right of Way No. 602.6 and Highway Right of Way No. 1499 -14, thence South 55 degrees 54 minutes West along the Northeast extension of said common right of way a distance of 46.43 feet, more or less, to the Northeast corner of the parcel of said common rights of way, thence continuing South 55 degrees 54 minutes West along the Northerly boundary of the parcel of common right of way, a distance of 150 feet to the Northwest corner of the parcel of said common right of way, thence continuing South 55 degrees 54 minutes West along the Southwesterly extension of the Northerly boundary of the parcel of said common right of way a distance of 50 feet to a point on the centerline of said railroad right of way, thence Northwesterly, along the centerline of said railroad right of way, on a Searle's Spiral to the right having 4 chords 50 feet in length, for a total length of 200 feet to a point of tangent, thence North 32 degrees 25 minutes West along the centerline of said railroad right of way, for a distance of 1,486 feet, more or less, to the point of beginning. Being a point on the North boundary of said Tract 50, County of Eagle, State of Colorado Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and =mom AMERIAN ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American LAND TITLE ASSOCIATION Land Title Association.