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Light replied that under the conservation easements that will govern the parcel, there is a <br />requirement that the parties, in this case the City and County, will make every effort they <br />can to prohibit or proscribe oil and gas development on the property. There are some <br />severed mineral rights and to the extent those are exercised and obtain approval to be <br />exercised the Warembourgs would be entitled to share in the royalties of those mineral <br />interests. He stated that it is the City's hope that the severed mineral rights are never <br />exercised. <br /> <br />Mayer asked for clarification that the surface owner doesn't have much say in the <br />exercising of severed mineral rights. <br /> <br />Light replied that is correct. They would be subject to a Special Review Use process if <br />the property were annexed to the City of Louisville. If the property were annexed to <br />Boulder County, then it would be subject to their oil and gas regulations. In general, the <br />mineral interest holder would have the ability to exercise those rights under whatever <br />existing severance documents they have. <br /> <br />Mayer questioned whether the royalties referred to are royalties that are severed or <br />royalties that still exist with the property. <br /> <br />Light replied that these are mineral rights that have been severed to the extent that there's <br />any entitlement for the overlying landowner to share in the royalties once those rights are <br />exercised. The Warembourgs are saying that they would like to have that money for <br />themselves for a period of ten years, after closing, should the oil and gas rights ever be <br />developed within that period of time. <br /> <br />Keany asked to recognize the efforts of Rob Lathrop in negotiating with the <br />Warembourgs for this purchase and staffs support for Rob in doing that. He expressed <br />appreciation for Rob's efforts in adding this property to the City's open space parcels. <br /> <br />Sisk agreed with Keany. He stated that he understood the purchase contract to be <br />referring to any oil and gas wells that would be drilled in the future. However, the <br />changes outlined in the Council Communication indicate that the Seller would be entitled <br />to any royalties generated by existing oil and gas wells. He asked for clarification that <br />there are no existing oil and gas wells on the property. <br /> <br />Light replied that this was his understanding also. <br /> <br />Sisk questioned whether this meant that the Warembourgs could enter into an oil and gas <br />lease in eight years, for example. <br /> <br />Light replied that this refers to the minerals that have already been severed. The <br />Warembourgs will only retain the royalties. There is a portion of the property for which <br />the underlying mineral rights were already severed. If that party attempts to exercise that <br /> <br />8 <br /> <br /> <br />