City of Brighton - File #: ID-163-21

• File #: ID-163-21
• Version: 1
• Type: Ordinance
• Status: Agenda Ready
• File created: 5/25/2021
• In control: City Council
• On agenda: 7/20/2021
• Title: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, APPROVING AN AMENDMENT TO AN OIL AND GAS LEASE WITH GREAT WESTERN OIL AND GAS COMPANY TO CORRECT THE LAND DESCRIPTION AND ADD +/- 0.271 NET MINERAL ACRES IN CERTAIN PORTIONS OF SECTION 13 IN TOWNSHIP 1 SOUTH, RANGE 67 WEST IN ADAMS COUNTY, COLORADO; FINDING THAT THE TERMS OF SAID LEASE AMENDMENT ARE REASONABLE AND THAT IT IS IN THE BEST INTEREST OF THE CITY TO ENTER INTO SAID LEASE AMENDMENT; AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE AMENDMENT ON BEHALF OF THE CITY; AND AUTHORIZING THE CITY MANAGER TO UNDERTAKE SUCH TASKS AND EXECUTE SUCH DOCUMENTS AS MAY BE REQUIRED TO IMPLEMENT SAID LEASE AMENDMENT

Date	Ver.	Action By	Action	Result
7/20/2021	1	City Council

To: Mayor Greg Mills and Members of City Council
Through: Lena McClelland, Esq. - Acting City Attorney
Marv Falconburg - Deputy City Manager
Jane Bais DiSessa - City Manager
Prepared By: Matthew Sura, Esq.
Date Prepared: May 24, 2021

PURPOSE

Consider an ordinance to amend a lease of City-owned minerals in Section 13 Township 1 South, Range 67 West of the 6th p.m. in Adams County, Colorado to Great Western Oil and Gas Company ("Operator") dba Grizzly Petroleum Company, LLC. This ordinance will allow the Mayor to execute the lease amendment on behalf of the City and the City Manager to execute other documents and take other actions necessary for the implementation of the leases.

BACKGROUND

1. The City owns an estimated 1,400 acres of surface lands within and near the City of Brighton. For most of these lands, the City owns at least some portion of the mineral rights.
2. In March 2015, the City passed amendments to its Municipal Code that would facilitate the development of oil and gas resources within the City of Brighton, while mitigating potential impacts to the City's groundwater resources as well as potential land use conflicts between such development and other land uses.
3. It has always been the objective of the City of Brighton to be open to leasing of its minerals and responsible development of resources.
4. The oil and gas industry is having good success in drilling and developing oil and gas wells in and around Brighton.
5. On December 15, 2015, the City entered into a lease with Ward Petroleum for 341.232 acres of City-owned property in Section 18, 1 South 66 West and Section 13, 1 South 67 West of the 6th p.m. in Adams County, Colorado. The ("Ward Petroleum Lease") was recorded on December 21, 2015 at Reception Number 2015000105746 (Attachment A).
6. Great Western subsequently purchased Ward Petroleum's assets in Colorado, including the Ward Petroleum Lease with Brighton.
7. Great We...