City Attorney
STAFF REPORT
Reference: Ordinance to approve the leasing of City-owned mineral rights in Section 10, Township 1 South, Range 66 West. (Adams County)
To: Mayor Ken Kreutzer and Members of City Council
Through: Philip Rodriguez, City Manager
? Study Session Date:__________________
? City Attorney Approval_______________
? Finance Director Approval:__________
? Regular Council Agenda Date:___________
? City Manager Approval:_____________
Prepared By: Matthew Sura Esq., Oil and Gas Special Counsel
Date Prepared: February 09, 2018
PURPOSE
Consider an ordinance to lease City-owned minerals in Section 10 Township 1 South, Range 66 West (Adams County) to Petro-Operating Company, LLC. Ordinance will allow the Mayor to execute the lease on behalf of the City and the City Manager to execute other documents and take other actions necessary for the implementation of the lease.
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. In June of 2015, Petro Operating Company, LLC met with City staff to request to develop oil and gas resources from within the city limits of Brighton.
4. Over the next year, Petro Operating submitted an application to the City of Brighton and negotiated a Memorandum of Understanding as allowed under Brighton Code Section 17-64. The City of Brighton and Petro Operating entered into the Memorandum of Understanding on March 1st, 2017 and received permits to conduct oil and gas operations within the city limits of Brighton from a well pad in Section 34, Township ...
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