Laserfiche WebLink
conduct sand and gravel mining operations. In addition, the Division has received correspondence from <br />surface and mineral owners and their representatives contesting the applicant's claims of having <br />adequate right of entry to conduct sand and gravel mining operations within the proposed permit area. <br />Please adequately address each of the concerns identified below: <br />The copies of two of the recorded Oil and Gas Leases contained in Exhibit P of the application, one <br />from the Youngs and one from the Willburns, are not signed by the lessee. As such, both leases may <br />be invalid. <br />After reviewing the terms of the Young and Willburn Oil and Gas Leases, it does not appear that either <br />lease provides the applicant adequate right of entry to commercially mine sand and gravel resources <br />within the portion of the proposed Orion Pit permit area situated within the NW 1 /4 NW 1 /4 of Section <br />1, T35N, R14W, N.M.P.M., and the NE 1/4 NE 1l4, SE 1/4 NE 1/4, and NE 1/4 SE i/4 of Section 2, <br />T35N, R14W, N.M.P.M. Both leases are entitled "OIL AND GAS LEASE", and both leases limit <br />activities to "the sole and only purpose of mining and operating for oil and gas, and laying pipe lines, <br />and building tanks, power stations and structures thereon to produce, save and take care of said <br />products". The words "sand" and "gravel" do not appear in either the Young or Willburn leases. <br />One of the lessors of the Young Oil and Gas Lease, Mr. George Mike Young, has stated in <br />correspondence to the Division dated 1 1 /14/94 that "nothing in those leases grants the right to mine <br />and produce for sale any material other than gas and oil". Mr. Young also stated that "the sand and <br />gravel resources located upon or within or beneath the described premises are the property of solely <br />my wife and myself as sole owners of the surface estate of the premises, and that we have not <br />granted the applicant any rights to mine sand and gravel". <br />The Division has received a copy of an affidavit from the Youngs dated May 29, 1997 indicating that: <br />1) Since Mr. Kinney never signed the lease, the Youngs had their attorney notify Mr. Kinney that the <br />Ydungs were revoking their previous signatures on the lease and were returning to Mr. Kinney the <br />bonus and any of the deferral payments that previously had not been returned; 21 The sand and gravel <br />within the Young's lease area are part of the surface estate and were not included in their discussions <br />with Mr. Kinney prior to the Young's signing the Oil and Gas Lease; 31 In signing the Oil and Gas <br />Lease, the Young's did not intend the terms "mineral substances" or "mineral aggregates" to grant Mr. <br />Kinney the right to commercially develop sand and gravel or to convey to Mr. Kinney the right to use <br />"mineral aggregates" for any and all purposes; 41 Mr. Kinney's right to use "mineral aggregates", if <br />at all, is limited by the Oil and Gas Lease to use "for the sole and only purpose of mining and operating <br />for oil and gas, and laying pipe lines, and building tanks, power stations and structures thereon to <br />produce, save and take care of said products"; and 51 On January 9, 1997, the Youngs entered into <br />an Option to Buy Material Agreement with Nielsons, Inc. pursuant to which Nielsons has the right to <br />purchase and remove sand and gravel, and sub-soil earth-fill material, from the Youngs property. <br />Regarding the copy of the Oil and Gas Lease from Robert Francis Willburn, Jr. contained in Exhibit P <br />of the application, the Division has received a copy of a Quit Claim Deed executed between Robert <br />Francis Willburn Jr. and George Mike and Shirley L. Young wherein it appears that Mr. Willburn has <br />sold all of whatever interest he may have had iri sand and gravel in the portion of the proposed permit <br />area situated within the NW 1/4 NW 1/4 of Section 1, and the NE 1/4 NE 1/4, SE 1/4 NE 1/4, and NE <br />1/4 SE 1/4 of Section 2, T35N, R14W, N.M.P.M. As such, it appears that the applicant does not <br />currently have a leasehold interest in sand and gravel resources situated within the area subject to the <br />Quit Claim Deed from Mr. Willburn. <br />Exhibit P of the application contains copies of two mineral owner Warranty Deeds, one from Betty L. <br />00248 <br />s <br /> <br />