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City Manager's Office
Reference: Oil and Gas Leases
To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Jack Bajorek, Esq. - City Attorney
Philip A. Rodriguez - City Manager
Marv Falconburg, AICP - Assistant City Manager
Prepared By: Matthew Sura, Esq.
Date Prepared: December 10, 2018
PURPOSE
Consider three ordinances to lease City-owned minerals in Sections 13 and 35 in Township 1 South, Range 67 and in Sections 2, 17 and 20 in Township 1 South, Range 66 West of the 6th p.m. in Adams County, Colorado to Great Western Oil and Gas Company, PetroShare Corporation, and Petro Operating Company, LLC ("Operators"). These ordinances will allow the Mayor to execute the leases on behalf of the City and the City Manager to execute other documents and take other actions necessary for the implementation of the leases.
STRATEGIC FOCUS AREA
Financially Responsible
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 the past six months, Brighton received offers from the above listed Operators to lease City-owned minerals in minerals in Sections 13 and 35 in Township 1 South, Range 67 and in Sections 2, 17 a...
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