City of Brighton - File #: ID-145-17

• File #: ID-145-17
• Version: 1
• Type: Ordinance
• Status: Agenda Ready
• File created: 3/14/2017
• In control: City Council
• On agenda: 4/4/2017
• Title: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO APPROVING AN OIL AND GAS LEASE (NO SURFACE OCCUPANCY) WITH PETRO OPERATING COMPANY, LLC FOR +/- 36.1607 NET MINERAL ACRES IN CERTAIN PORTIONS OF SECTION 3 TOWNSHIP 1 SOUTH, RANGE 66 WEST OF THE 6TH P.M. IN ADAMS COUNTY, COLORADO AND IN SECTION 34 TOWNSHIP 1 NORTH, RANGE 66 WEST OF THE 6TH P.M. WELD COUNTY, COLORADO; FINDING THAT THE TERMS OF SAID LEASE ARE REASONABLE AND THAT IT IS IN THE BEST INTEREST OF THE CITY TO ENTER INTO SAID LEASE; AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE ON BEHALF OF THE CITY; AUTHORIZING THE ACTING CITY MANAGER TO UNDERTAKE SUCH TASKS AND EXECUTE SUCH DOCUMENTS AS MAY BE REQUIRED TO IMPLEMENT SAID LEASE; AND SETTING FORTH OTHER DETAILS RELATED THERETO

Date	Ver.	Action By	Action	Result
4/4/2017	1	City Council

City Attorney
STAFF REPORT

Reference: Ordinance to approve the leasing of City-owned mineral rights in Sections 3 (Adams County) and 34 (Weld County) to Petro Operating

To: Mayor Richard N. McLean and Members of City Council
Through: Clint Blackhurst, Acting 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: March 14, 2017


PURPOSE

Consider an ordinance to lease City-owned minerals in Sections 3 Township 1 South, Range 66 West (Adams County) and Section 34 Township 1 North, Range 66 West to Petro-Operating Company, LLC. Ordinance will allow the Mayor to execute the lease on behalf of the City and the Acting 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, once the amendments to the City Code were in place.
4. The oil and gas industry is having good success in drilling and developing oil and gas wells in and around Brighton.
5. Over a year ago, Brighton received an offer from Petro Operating Company, LLC ("Petro Operating") to lease City-owned minerals in Sections 3 Township 1 South, Range 66 West (Adams Cou...