Loading...
HomeMy WebLinkAbout20132695.tiffSTATE OF COLORADO O DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: 1303) 866-3569 FAX: (303) 832-8106 CONSTRUCTION MATERIAL LIMITED IMPACT (110) OPERATION RECLAMATION PERMIT APPLICATION PACKAGE APPLICABILITY: COLORADO DIVISION OF RECLAMATION MINING -&- SAFETY RECEIVED SEP 2 0 2013 WELD COUNTY COMMISSIONERS This application package is for a construction material extraction operation affecting LESS than 10 acres. If you plan to conduct a construction material extraction operation which meets these criteria, please follow the instructions provided in this package, in the Rules and Regulations, and in the Colorado Land Reclamation Act for the Extraction of Construction Materials, as required. RECOMMENDATIONS PRIOR TO FILING: The Construction Material Rules and Regulations (the Colorado Land Reclamation Act for the Extraction of Construction Materials, Section 34-32.5-101, et seq., C.R.S., and 2 CCR 407-1), and the Colorado Mined Land Reclamation Board (the "Board") regulate the permitting, operational and reclamation requirements for all construction material extraction operations in Colorado. It is your obligation to comply with the Act and Regulations. You are encouraged to obtain and review a copy of the Rules, available for $ 8.00 from the Division of Reclamation, Mining, and Safety (the "Office"). In order to submit your applicationproperly, it is recommended that you review the Act and: Rule 1.1 Definitions; Rule L4 Application Review and Consideration Process; Rule 1.6 Public Notice Procedures; Rule 3.1 Reclamation Performance Standards; Rule 3.3.1 Operating without a Permit - Penalty; Rule 4 Performance Warranties and Financial Warranties; Rule 6 Permit Application Exhibit Requirements; Rule 6.2 General Requirements of Exhibits; Rule 6.3 Specific Permit Application Exhibit Requirements; Rule 6.5 Geotechnical Stability Exhibit (as required). It is recommended that you contact the agencies listed in the application section titled "Compliance With Other Laws" prior to submitting the application to the Office . �u1Sic (fly glasli3 Co. pc imp Office of A Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines 2013-2695 FILING REQUIREMENTS: In order to apply for a Reclamation Permit for a Limited Impact Operation, please provide: o One (1) signed and notarized completed ORIGINAL and one (1) copy of the completed original Limited Impact Operation (110) Application Form. ORIGINAL SIGNATURES MUST BE IN BLUE INK. o Two (2) copies of Exhibits A -J and Exhibit L (required sections described in Rule 6). o Two (2) copies of Addendum 1 - Notice requirements (described in Rule 1.6.2(1)(b)). A sample of this notice is attached for your use. o The Geotechnical Stability Exhibit when required by the Division. o The application fee. The thirty (30) day period for review of the application and exhibits will NOT begin until all required information and fee are submitted. The Office will then review the submitted information for adequacy. NOTICE REQUIREMENTS: 1. You MUST send a notice, on a form approved by the Board, to the local board of county commissioners. A copy of this "Notice of Filing Application" fonn is attached for your use. 2. If the mining operation is within the boundaries of a conservation district, send a notice to the board of supervisors of the conservation district, PRIOR to filing the application. A copy of this "Notice of Filing Application" form is attached for your use. 3. You MUST include proof of notice #1 and #2 above with the application at the time the application is submitted to the Office for filing (Rule 1.6.2(1)(g)). 4. PRIOR to filing the application, place for public review a copy of the application, less confidential items, with the clerk or recorder of the county or counties in which the affected land is located. 5. You MUST include an affidavit or receipt demonstrating that the application was filed with the county clerk or recorder at the time the application is submitted to the Office for filing. 6. Any changes or additions made to an application submittal MUST be filed with the county clerk or recorder. You MUST also provide the Office with an affidavit or receipt demonstrating that the change was filed with the county clerk or recorder no later than the close of business on the day the change was fled with the Office (Rule 1.8.1(2)). 7. Within ten (10) days after your application is considered filed, you must publish once in a newspaper of general circulation, in the locality of the proposed mining operation, the notice described in Rule 1.6.2(1)(d). A copy of a form which includes all required information for the notice has been attached for your use. 8. In addition, after the publication you must mail or personally serve a copy of the notice described in Rule 1.6.2(1)(d) to all owners of record of surface rights to the affected land and all owners of lands that are within 200 feet of the boundary of the affected land (Rule 1.6.2(1)(e)). 9. Prior to the Office making a decision (consideration of the application), you MUST submit a copy of the proof of publication from the newspaper and proof of all required notices. Proof of the notices may be by submitting copies of return receipts of a certified mailing or by proof of personal service (Rules 1.4.1(4), 1.4.2(4)(c), 1.6.2(1)(a)(ii), and 1.6.2(1)(g)). The copy of the application and any changes or additions placed at the office of the county clerk or recorder shall NOT be recorded, but shall be retained there for at least sixty (60) days after a decision on the application by the Office and be available for inspection during this period. At the end of this period, the application maybe reclaimed by the applicant or destroyed (Rule 1.6.2(2)). APPLICATION REVIEW PROCEDURES: The Office shall approve or deny the application within thirty (30) days of filing unless the date for consideration by the Office is extended pursuant to Rule 1.8. The time for consideration shall not be extended beyond thirty (30) days after the last such change submitted. For complex applications, the review period may be extended an additional sixty (60) days. Please see Rule 1.1(10) for the defmition of what constitutes a complex application. APPLICATION APPROVAL/DENIAL: If the requirements of the Act and Mineral Rules have been satisfied, the Office will approve the application. The Act also provides for automatic approval if no action is taken by the Office by the end of the review period. If the Act and Regulation requirements have not been satisfied, the Office will deny the application. If the Office denies the application, you may appeal to the Board for a final determination by submitting a written request for administrative appeal to the Board within 60 days of the decision date (Rule 1.4.7). PERFORMANCE AND FINANCIAL WARRANTIES: A performance warranty, and a fmancial warranty dollar amount determined during the application review process, must be submitted and approved by the Office PRIOR to pennit issuance. A financial warranty should NOT be submitted until a decision on the application has been made. If the applicant is a unit of state or county government, then ONLY a performance warranty is required. Several different types of financial warranties are allowed by the law. Please review Rule 4.0 to determine which type of fmancial warranty you desire to use. You may obtain the appropriate warranty forms from the Office during the application review period. Please note that an application approval DOES NOT convey a right to begin operations. You MUST submit, and have approval of your performance and financial warranties, and receive our copy of the signed permit document PRIOR to beginning on -site mining activity. AUTOMATIC PERMIT APPROVAL: An automatic approval will occur where the Office fails to notify the applicant/operator that the application has been denied. This decision must be made thirty (30) calendar days from the date the application was determined to have been filed. However, the performance and financial warranties must be submitted and approved by the Office before the permit will be issued even if you receive an automatic approval. NO MINING OPERATIONS SHALL BEGIN UNTIL A PERMIT IS ISSUED (Section 34-32.5-109(1), C.R.S.). COMPLIANCE WITH OTHER LAWS: Compliance with the Act and Rules and Regulations of the Mined Land Reclamation Board DOES NOT relieve you of your responsibility to comply with all other applicable state and federal laws. We recommend that you contact the following agencies to determine whether you need to comply with their legal requirements: o The Colorado State Historical Preservation Office regarding properties of historical significance including the need for an archeological survey, procedures for requesting a file search, and inventory fonns to identify structures. o Colorado Division of Water Resources with regard to water rights; o Colorado Department of Health, Water Quality Control Division, with regard to the discharge of pollutants into the State waters; o Colorado Department of Health, Air Pollution Control Division, with regard to the need for a fugitive dust pennit; o U.S. Bureau of Land Management or the U.S. Forest Service if the proposed operation will occur on federal lands; o U. S. Army Corps of Engineers regarding a dredge and fill (404) permit; and o The County Planning Department for the county or counties in which your proposed operation is located. - iv -- Section 34-32.5-109(3), C.R.S. requires a mining operator to be responsible for assuring that the mining operation and the post -mining land use comply with local land use regulations and any master plan for extraction adopted pursuant to Section 34-1-304, C.R.S. COMPLETION OF MINING: Upon completion of any phase of reclamation, you should consult Rule 3.1 for reclamation standards and 4.16 for details on how to request a reclamation responsibility release from the Board. STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 CHECK ONE: CONSTRUCTION MATERIALS LIMITED IMPACT (110) OPERATION RECLAMATION PERMIT APPLICATION FORM There is a File Number Already Assigned to this Operation Permit # M - COLORADO DIVISION OF RECLAMATION MINING — &--- SAFETY (Please reference the file number currently assigned to this operation) New Application (Rule 1.4.5) ST Amendment Application (Rule 1.10) Conversion Application (Rule 1.11) Permit # M - (provide for Amendments and Conversions of existing permits) The application for a Construction Materials Limited Impact (110) Operation Reclamation Permit contains three major parts: (1) the application form; (2) Exhibits A -J, Exhibit L, Addendum 1, any sections of Exhibit 6.5 and Geotechnical Stability Exhibit, as required by the Office, and outlined in Rules 6.1, 6.2, 6.3, 6.5, and 1.6.2(1)(b); and (3) the application fee. When you submit your application, be sure to include one (1) complete sinned and notarized ORIGINAL and one (1) copy of the completed application form, two (2) copies of Exhibits A -J, Exhibit L, Addendum 1, and appropriate sections of 6.5 (Geotechnical Stability Exhibit), as required, and a check for the application fee described under (4) below. Exhibits should NOT be bound or in a 3 -ring binder; maps should be folded to 8 1/2" X 11" or 8 1/2" X 14" size. To expedite processing, please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly, in the space provided, ALL information described below. 1. Applicant/operator or company name (name to be used on permit): Vesco Consulting Services, LLC 1.1 Type of organization (corporation, partnership, etc.): LLC 2. Operation name (pit, mine or site name): GoodMiller Pit 3. Permitted acreage (new or existing site): 3.1 Change in acreage (+) 3.2 Total Acreage in Permit Area 4. Fees: 4.1 New Application: Amendment Fee (C.R.S. 34-32.5-125(11)): RECEIVED SEP 2 0 2013 WELD COUNTY COMMISSIONERS 5. Primary commoditie(s) to be mined: sand gravel dirt 9.9 permitted acres acres 9.9 acres $1258.00 application fee $827.00 application fee 5.1 Incidental commoditie(s) to be mined: 1. / lbs/Tons/yr 2. / lbs/Tons/yr 3. / lbs/Tons/yr 4. / lbs/Tons/yr 5. / lbs/Tons/yr 5.2 Anticipated end use of primary commoditie(s) to be mined: construction Anticipated end use of incidental commoditie(s) to be mined: 11. Correspondence Information: APPLICANT/OPERATOR (name, address, and phone of name to be used on permit) Contact's Name: Company Name: Street/P.O. Box: City: State: Telephone Number: Fax Number: Michael Miller Title: Owner 1624 E. Hwy 34 p.0. Box: PO Box 336626 Greeley CO (970 1- 356-1853 (970 ) _ 356-1839 Zip Code: 80633 PERMITTING CONTACT (if different from applicant/operator above) Contact's Name: Title: Company Name: Street/P.O. Box: P.O. Box: City: State: Zip Code: Telephone Number: ( 1 - Fax Number: ( ) - INSPECTION CONTACT Contact's Name: Michael Miller Title: Owner Company Name: Vesco Consulting Services, LLC Street/P.O. Box: 1624 E. Hwy 34 P.O. Box: PO Box 336626 City: Greeley State: CO Zip Code: 80633 Telephone Number: (970 ) _ 356-1853 Fax Number: (970 ) _ 356-1839 CC: STATE OR FEDERAL LANDOWNER (if any) Agency: Street: City: State: Telephone Number: State Board of Land Commissioners 1127 Sherman St. #300 Denver CO (303 )_ 866-3454 x3313 CC: STATE OR FEDERAL LANDOWNER (if any) Zip Code: 80203 Agency: Street: City: State: Zip Code: Telephone Number: ( ) - 7. Name of owner of the subsurface rights of affected land: 8. Name of owner of the surface of affected land: 9. Type of mining operation: ✓ Surface Colorado State Board of Land Commissioners Colorado State Board of Land Commissioners Underground _ In -situ 10. Location information: The center of the area where the majority of mining will occur: COUNTY: Weld PRINCIPAL MERIDIAN (check one): 6th (Colorado) 10th (New Mexico) SECTION (write number): s 16 TOWNSHIP (write number and check direction): T 7.0 North RANGE (write number and check direction): R 59.0 East QUARTER SECTION (check one): f °° I NE NW QUARTER/QUARTER SECTION (check one): ✓ NE NW 11 L South West SE SE Ute SW SW GENERAL DESCRIPTION: (the number of miles and direction from the nearest town and the approximate elevation): from New Raymer CO 7 miles west to CR 115, 2 miles south on west side of road 5,060 ft elevation 11. Primary Mine Entrance Location (report in either Latitude/Longitude OR UTM): Latitude/Longitude: Example: (N) (W) 39° 44' 12.98" 104° 59' 3.87" Latitude (N): deg 40 min 34 sec 46 70.00 (2 decimal places) Longitude (W): deg 103 min 58 sec 25 .88.00 (2 decimal places) OR Example: (N) 39.73691° (W) -104.98449° Latitude (N) (5 decimal places) Longitude(W) (5 decimal places) OR Universal Tranverse Mercator (UTM) Example: 201336.3 E NAD27 Zone 13 4398351.2 N UTM Datum (specify NAD27, NAD83 or WGS 84) _ NAD83 Easting Northing 13 Zone 12. Primary future (Post -mining) land use (chec Cropland(CR) Rangeland(RL) Residential(RS) ® Developed Water Resources(WR) • Pastureland(PL) Forestry(FR) Recreation(RC) 13. Prim v resent land use (check one): Cropland(CR) El Pastureland(PL) [1Rangeland(RL) DForestry(FR) Residential(RS) FlRecreation(RC) Developed Water Resources (WR) L General Agriculture(GA) Wildlife Habitat(WL) Industrial/Commercial(IC) Solid Waste Disposal(WD) General Agriculture(GA) Wildlife Habitat(WL) RIndustrial/Commercial(IC) Mining (MN) 14. If this operation will use designated chemicals, or will result, or presently has acid mine dramage - you cannot use this application form. You must submit either a 110d or 112d application form for Designated Mining Operations. In either case, you must list any acidic or toxic -forming materials, exposed or disturbed as a result of the mining operation, and whether the operation will result in or presently has acid mine drainage: 15. Description of Amendment or Conversion: If you are amending or converting an existing operation, provide a brief narrative describing the proposed change(s): Maps & Exhibits: Submit two (2) complete, unbound copies of the following application exhibits: 6.3.1 EXHIBIT A - Legal Description and Location Map 6.3.2 EXHIBIT B - Site Description 6.3.3 EXHIBIT C - Mining Plan 6.3.4 EXHIBIT D - Reclamation Plan 6.3.5 EXHIBIT E - Maps, to include the location of any recorded easements 6.3.6 EXHIBIT F - List of Other Pennits and Licenses Required 6.3.7 EXHIBIT G - Source of Legal Right -to -Enter 6.3.8 EXHIBIT H - Municipalities Within a Two-mile Radius 6.3.9 EXHIBIT I - Proof of Filing with County Clerk 6.3.10 EXHIBIT J - Proof of Mailing Notices of Permit Application 6.3.12 EXHIBIT L - Permanent Man -Made Structures 1.6.2(1)(b) ADDENDUM 1 - Notice Requirements (sample enclosed) 6.5 Geotechnical Stability Exhibit (as required) Responsibilities as a Permittee: Upon application approval and permit issuance, this application becomes a legally binding document. Therefore, there are a number of important requirements which you, as a permittee, should fully understand. These requirements are listed below. Please read and initial each requirement in the space provided, to acknowledge that you understand your obligations. If you do not understand these obligations then please contact this Office for a full explanation. 1. Your obligation to reclaim the site is not limited to the amount of the financial warranty. You assume legal liability for all reasonable expenses which the Board or the Office may incur to reclaim the affected lands associated with your mining operation in the event your permit is revoked and fmancial warranty is forfeited; 2. The Board may suspend or revoke this permit, or assess a civil penalty, upon a finding that the permittee violated the terms or conditions of this permit, the Act, the Mineral Rules and Regulations, or that information contained in the application or your permit misrepresent important material facts; 3. If your mining and reclamation operations affect areas beyond the boundaries of an approved permit boundary, substantial civil penalties, to you as permittee can result; 4. Any modification to the approved mining and reclamation plan from those described in your approved application requires you to submit a permit modification and obtain approval from the Board or Office; 5. It is your responsibility to notify the Office of any changes in your address or phone number; 6. Upon permit issuance and prior to beginning on -site mining activity, you must post a sign at the entrance of the mine site, which shall be clearly visible from the access road, with the following information (Rule 3.1.12): a. the name of the operator; b. a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board; and, c. the permit number. 7. The boundaries of the permit boundary area must be marked by monuments or other markers that are clearly visible and adequate to delineate such boundaries prior to site disturbance; 8. It is a provision of this permit that the operations will be conducted in accordance with the terms and conditions listed in your application, as well as with the provisions of the Act and the Mineral Rules and Regulations in effect at the thne the permit is issued. 9. Annually, on the anniversary date of permit issuance, you must submit an annual fee as specified by Statute, and an annual report which includes a map describing the acreage affected and the acreage reclaimed to date (if there are changes from the previous year), any monitoring required by the Reclamation Plan to be submitted annually on the anniversary date of the permit approval. Annual fees are for the previous year a permit is held. For example, a permit with the anniversary date of July 1, 1995, the annual fee is for the period of July 1, 1994 through June 30, 1995. Failure to submit your annual fee and report by the permit anniversary date may result in a civil penalty, revocation of your permit, and forfeiture of your financial warranty. It is your responsibility, as the permittee, to continue to pay your annual fee to the Office until the Board releases you from your total reclamation responsibility. 10. For joint venture/partnership permittee: the signing representative is authorized to sign when document and a power of attorney (provided by the partner(s)) authorizing the signature of the representative is attached to this application. -6 - NOTE TO COMMENTORS/OBJECTORS: It is likely there will be additions, changes, and deletions to this document prior to final decision by the Office. Therefore, if you have any comments or concerns you must contact the applicant or the Office prior to the decision date so that you will know what changes may have been made to the application document. The Office is not allowed to consider comments, unless they are written, and received prior to the end of the public comment period. You should contact the applicant for the final date of the public comment period. If you have questions about the Mined Land Reclamation Board and Office review and decision or appeals process, you may contact the Office at (303) 866-3567. Certification: As an authorized representative of the applicant, I hereby certify that the operation described has met the minimum requirements of the following terms and conditions: 1. All necessary approvals from local government have been applied for (Section 34-32.5-110(1)(a)(VIII). 2. To the best of my knowledge, all significant, valuable and permanent man-made structure(s) in existence at the time this application is filed, and located within 200 feet of the proposed affected area have been identified in this application (Section 34-32.5-115(4)(e), C.R.S.). (NOTE: For 110 operations, the affected area includes all lands delineated by the permit boundary.) 3. No mining operation will be located on lands where such operations are prohibited by law (Section 34-32.5-115(4)(f), C.R.S.). 4. As the applicant/operator, I do not have any mining/exploration operations in the State of Colorado currently in violation of the provisions of the Colorado Land Reclamation Act for the Extraction of Construction Materials (Section 34-32.5-120, C.R.S.). 5. I understand that statements in the application are being made under penalty of perjury and that false statements made herein are punishable as a Class 1 misdemeanor pursuant to Section 18-8-503, C.R.S. 1984. This form has been approved by the Mined Land Reclamation Board pursuant to section 34-32.5-110,C.R.S., of the Colorado Land Reclamation Act for the Extraction of Construction Materials. Any alteration or modification oftlris form shall result in voiding any permit issued on the altered or modified form and subject the operator to cease and desist orders and civil penalnes for operating without a permit pursuant to section 34-32.5-123, C.R.S. Signed and dated this 30 day of SeP7es ' .cam , a.o 13 1/15W CM161/1-T ► Ak 5S -V -0W Leif_ Applicant/Operator Title: Owner State of U XoraCID County of j -)t204 ) ss. The foregoing instrument was acknowledged before me this r2® ,byIYdiOA^C)lJ 11 -Nn Up/ as Signed: Corporate Secre Seal) or Equi talent ty/County Clerk day of 9-4-6 rot - r 2313 of \It& D t.n-sau airy &Alleys LLC Notary PublicdAe My Commission expires:"CI ,c.[/Q� SIGNATURES MUST BE IN BLUE INK TARA BRISBY Notary Public State of Colorado My Commission Expires January 06, 2015 NOTICE OF FILING APPLICATION FOR COLORADO MINED LAND RECLAMATION PERMIT FOR CONSTRUCTION MATERIALS LIMITED IMPACT (110) OPERATION NOTICE TO THE BOARD OF COUNTY COMMISSIONERS Weld COUNTY Vesco Consulting Services, LLC (the "Applicant/Operator") has applied for a Construction Materials Limited Impact (110) Reclamation permit from the Colorado Mined Land Reclamation Board (the "Board") to conduct the extraction of construction materials in Weld County. The attached information is being provided to notify you of the location and nature of the proposed operation. The entire application is on file with the Division of Reclamation, Mining, and Safety (the "Division") and the local county clerk and recorder. The applicant/operator proposes to reclaim the affected land to Pasture land use. Pursuant to Section 34-32.5-116(4)(m), C.R.S., the Board may confer with the local Board of County Commissioners before approving of the post -mining land use. Accordingly, the Board would appreciate your comments on the proposed operation. Please note that, in order to preserve your right to a hearing before the Board on this application, you must submit written comments on the application within ten (10) days after the date of the applicant's newspaper publication. If you would like to discuss the proposed post -mining land use, or any other issue regarding this application, please contact the Division of Reclamation, Mining, and Safety, 1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567. NOTE TO APPLICANT/OPERATOR: You MUST attach a copy of the application form to this notice. If this is a notice of a change to a previously filed application you must either attach a copy of the changes, or attach a complete and accurate description of the change. NOTICE OF FILING APPLICATION FOR COLORADO MINED LAND RECLAMATION PERMIT FOR CONSTRUCTION MATERIALS LIMITED IMPACT (110) OPERATION NOTICE TO THE BOARD OF SUPERVISORS OF THE LOCAL CONSERVATION DISTRICT West Greeley DISTRICT Vesco Consulting Services, LLC (the "Applicant/Operator") has applied for a Construction Materials Limited Impact (110) Reclamation permit from the Colorado Mined Land Reclamation Board (the "Board") to conduct the extraction of construction materials in Weld County. The attached information is being provided to notify you of the location and nature of the proposed operation. The entire application is on file with the Division of Reclamation, Mining, and Safety (the "Division") and the local county clerk and recorder. The applicant/operator proposes to reclaim the affected land to pasture and use. Pursuant to Section 34-32.5-116(4)(m), C.R.S., the Board may confer with the local Conservation Districts before approving of the post -mining land use. Accordingly, the Board would appreciate your comments on the proposed operation. Please note that, in order to preserve your right to a hearing before the Board on this application, you must submit written comments on the application within ten (10) days after the date of the applicant's newspaper publication. If you would like to discuss the proposed post -mining land use, or any other issue regarding this application, please contact the Division of Reclamation, Mining, and Safety, 1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567. NOTE TO APPLICANT/OPERATOR: You must attach a copy of the application form to this notice. If this is a notice of a change to a previously filed application you must either attach a copy of the changes, or attach a complete and accurate description of the change. An example Structure Agreement which meets the requirements of the Statutes is shown below. **************a;::;:::::kX:t:e*****.:::a::********•Y,.****:ha==k#'X%k%k*:;:*:1*******XA**:;:>. ***.k.kx:k:k;l*X:; **.'.:*:,:** 1: Structure Agreement This letter has been provided to you as the owner of a structure on or within two hundred (200) feet of a proposed mine site. The State of Colorado, Division of Reclamation, Mining and Safety ("Division") requires that where a mining operation will adversely affect the stability of any significant, valuable and permanent man-made structure located within two hundred (200) feet of the affected land, the Applicant shall either: a) Provide a notarized agreement between the Applicant and the Person(s) having an interest in the structure, that the Applicant is to provide compensation for any damage to the structure; or b) Where such an agreement cannot be reached, the Applicant shall provide an appropriate engineering evaluation that demonstrates that such structure shall not be damaged by activities occurring at the mining operation; or c) Where such structure is a utility, the Applicant may supply a notarized letter, on utility letterhead, from the owner(s) of the utility that the mining and reclamation activities, as proposed, will have "no negative effect" on their utility. ( Construction Materials Rule 6.3.12 and Rule 6.4.19 & Hard Rock/Metal Mining Rule 6.3.12 and Rule 6.4.20) The Colorado Mined Land Reclamation Board ("Board') has determined that this form, if properly executed, represents an agreement that complies with Construction Materials Rule 6.3.12(a), Rule 6.4.19(a), and C.R.S. ,¢ 34-32.5-115(4)(e) and with Hard Rock/Metal Mining Rule 6.3.12(a), Rule 6.4.20(a), and C.R.S. § 34-32-115(4)(d). This form is for the sole purpose of ensuring compliance with the Rules and Regulations and shall not make the Board or Division a necessary party to any private civil lawsuit to enforce the terms of the agreement or create any enforcement obligations in the Board or the Division. The following structures are located on or within 200 feet of the proposed affected area: none 1. 2. 3. 4. 5. N� S7tkici-'Ua5 (Please list additional structures on a separate page) CERTIFICATION The Applicant, (print applicant/company name), by (print representative's name), as Owner (print representative's title), does hereby certify that (structure owner) shall be compensated for any damage from the proposed mining operation to the above listed structure(s) located on or within 200 feet of the proposed affected area described within Exhibit A, of the Reclamation Permit Application for LLC (operation name), File Number M- - This form has been approved by the Colorado Mined Land Reclamation Board pursuant to its authority under the Colorado Land Reclamation Act for the Extraction of Construction Materials and the Colorado Mined Land Reclamation Act for Hard Rock, Metal, and Designated Mining Operations. Any alteration or modification to this form shall result in voiding this form. NOTARY FOR PERMIT APPLICANT ACKNOWLEGED BY: Applicant Representative Name Date Title STATE OF ) ) ss. COUNTY OF ) The foregoing was acknowledged before me this day of _ as of 20 by My Commission Expires: Notary Public NOTARY FOR STRUCTURE OWNER ACKNOWLEGED BY: Structure Owner Date STATE OF ) )ss. COUNTY OF ) Name Title The foregoing was acknowledged before me this day of _ as of Notary Public ,20 ,by My Commission Expires: Weld County Colorado Assessor Map Feet 0 500 00 1 inch = 1,142 feet 2,000 Map created on 9/17/2013 at 2:57:27 PM by mdixon Weld County GIS; 1400 N 17th Ave, Greeley, CO maps@co.weld.co.us; 970-304-6570 x 2520 Mil4 5a.i N s product has been developed solely for internal use only by Weld County. The GIS database and I in the product is subject to constant change and the accuracy and completeness cannot be and is tot guaranteed. The designation of lots or parcels or land uses in the data base does not imply that the lots or parcels were legally created or that the land uses comply with applicable State or Local law. UNDER NO CIRCUMSTANCE SHALL THE PRODUCT BE USED FOR FINAL DESIGN PURPOSES. WELD COUNTY MAKES NO WARRANTIES OR GUARANTEES, EITHER EXPRESSED OR IMPLIED AS TO THE COMPLETENESS, ACCURACY, OR CORRECTNESS OF SUCH PRODUCT, NOR ACCEPTS ANY LIABILITY, ARISING FROM ANY INCORRECT, INCOMPLETE OR MISLEADING INFORMATION CONTAINED 1EREIN. No part of the product may be copied, reproduced or transmitted in any form or by any Jeans whatsoever, including, but not limited to, electronic, mechanical, photocopying, recording, anning, or by any information retrieval system or any non -approved purpose without the express written consent of Weld County. Map Legend O GIS Section Corner Township / Range Grid F-- GIS Sections GIS Quarter Section Line --- - GIS Section Line ---- GIS Township Line — -- — GIS Range Line Parcels pp Highway a ea — - Highway (Gravel) County Road (Paved) County Road (Gravel) Municipal Road (Paved) — Municipal Road (Gravel; — Other Road 1►1iit fla a rnann nm 0 1 6 5 459 2 1 8 12 7 8 1 9 10 11 12 7 07 18 1 160 N 14 13 7N 24 24 8 19 19 20 21 220 23 25 30 29 28 27 26 25 30 36 31 32 33 34 35 36 31 I -r -yam 4= ``O 'I'l'/. : , e ` : a SCR 93_ a 1 % 3 F 120 . ip a 1- `1 1 c 43- CR 115 o- cRile_—a: 1i8 57% — - ic i ../� CR 1954 --,....1 s _ ° 0,, f1 .,. 22 3 / �ir� c LL ,�0- - i 1 ¢o,. f - IA , vi n 190... qgg.✓rig °11'^}1} 4Y3 9i21"a'--1.2&-t25-#27_ :129-__-131_....q —405-407 705 ,A. 1 , I 1m i 0:‘,1 is 22 //2 oa ° � 9 �� %CR 105= cl /2"297 102(4 22 22 r 19 /Ft 92 it si `� s ,: ,:. 4. 1 K . 1 a, CR 12+2 1 It 22 CRl5i7: I; 7S 1� I 9N S Iv,. , 84 li 32 a j v 13 105 107 109 111 1i"1 54000 CR 89 113 115 117 22 a 52 . J I 1 i C `` CR 104 9 ¢3 i . of i a e- I " 1 1 -_Iv _ a 1 I 1 ICR 82111 i Ic c _ I to;_ ca :. ;, 1 n 1 1 1 .�,� 1 1A 1- 1 F3— g —g ICR351 I . , 1 i 1 ICR75 i F_ _4__-__N__. i = s ree 1 CRriff) 119 121 123 50000 hid County Road Code ddress Position Key. 4321 or Even Roads: Double postions 4 and 5 rd present). . Add 1 to the result -This will be the intersecting road. . Position 3 is the distance East of the intersection in tenths of a mile- . Position 1 is which side of the road. Odd is North, Even is South. or Odd Roads: . Double positions 4 and 5 (d present). . Add2 to the result -This will be the intersecting road. . Position 3 is the distance North of the intersection in tenths of a mile. Position 1 is which side of the road. Odd is West, Even is East. 125 127 129 131 133 135 P rus1 Address Grid Highway r\-_, County Road (Paved) County Road (Gravel) "-\._y Municipal Road (Paved) Municipal Road (Gravel) Other Road 66000 CR 994.5 1 .. OCR 114 O r ,ca cni a ,_-- e2 freel , 1 is 137 139 141 72 °� fs% 1 a i CR 112 1 1 I t .. -153---955- ' 1 reiel ✓1 9 1I I I F 1 —j-C-12-54 3'I 1 CR 821, cO __I,,, 0 1744; 17, 17 IU . c,. S___Io ICR 808 1 - 1 I 1 CR 73 —_1__i—St 32 I 3 143 145 147 149 151 153 151 72000 5 Weld Cou Roads Weld County GIS July 2013 ROADISTREET CROSS REFERENCE 'rr Nafinnal fraccianrle EXHIBIT B SITE DESCRIPTION FOR THE GOODMILLER PIT APPLICATION SUBMITTED BY VESCO CONSULTING SERVICES, LLC This property is located in the nw % of section 16, T7N, R59W, of the 6th PM. The site is owned and managed by the Colorado State Board of Land Commissioners, 1127 Sherman St. #300, Denver, Co. The land is currently rangeland used as pasture and leased to a local rancher for that purpose. The site was previously mined for sand and gravel and partially reclaimed after mining ended. The site is near the top of a hill and is covered with native grasses and some cactus. There are no existing structures or improvements except for a perimeter fence of barbed wire in fair condition. There are no water resources on the property or in the immediate vicinity. The soils in the area are Olney fine sandy loam and Cascajo gravelly sandy loam. The nearest defined drainage is Wildcat Creek to the west southwest approximately 150 ft lower in elevation. It is our opinion that neither surface or groundwater systems will be affected by this mining operation and that no discharge permits will be required. Applicant: _YE Sc.' Girt cur pc, 66iL1ha , LC Case #: AT t6 Location: _ iv&/ti cEc 16 ritv'FtqLc W Miles ®.032565 0.13 0.195 0.26 J ti VI z J vs C• C, U c ' a C) O 0 C) Q O W 0 C, O as co O C3 ist of the soi Additional Comments Prime Farm z C) >- z z L E5 2 U) Co — O} C E E� CI) E Q U to C) (n a) O L a) CO CO 2 U) a)) a) CO) a) > a) (1) Soil Texture CO J E E � O OI J J a CO A >, '- c c rt3 ca 4O a) co co > O O�-6 CLII C c UO E co co Co 0) o CO _C 0 U O O a o d- Lc) 'co N d d' in o • O 0 a) a '- a) a) O a) o U, Ct� `) 0 o Q• E IN 0 O U) Li_ C) C C' O >, U C C O C O -c U C U co •_ O Q- Q O � Cz • Cll Q a) O •i-d O v-- cn • N O O c o? O co C O a • ti O O 4-4 Co' co U U Co ▪ O co ca - C N O C O O E C) o co 4- Q C C c O O CO -p • C) CO C C!) U- a) Cl) c 2 o O c ,o a i2 a9 t— -o U 0 O Co U Produced by the West Greeley Conservation District EXHIBIT C MINING PLAN GOODMILLER PIT/ VESCO CONSULTING SERVICES, LLC The mining plan is to strip the topsoil using scrapers and pile it along the northern perimeter of the permit area. The topsoil pile will be graded and seeded to prevent erosion. After stripping material will be fed into the processing equipment on the eastern side of the permit area and processed, then conveyed to the stockpile area on the southern edge of the permit area where it will be loaded, scaled and delivered using CR 115. The pit run will be mined using a front end loader, loaded into a crushing/screening plant and then stockpiled using conveyors. When the deposit is mined to its maximum depth the area will be graded and sloped to a 4:1 slope in preparation for reclamation. The pit will be mined from the northeast to the southwest, with the processing equipment moving to the mined area as needed to facilitate mining of the complete permit area. The mine will use an existing access previously used in the abandoned mine and now used by the rancher. The access will be widened and the gate will be moved west to allow for the installation of a cattle guard far enough from the road to allow a truck to stop in the access without blocking the county road. The road surface will be improved with compacted road base and dust will be controlled using a water truck as needed. There will be no disturbance to the hydrologic balance as a result of this mining operation. Storm water will be contained on site by berming the perimeter and released in a controlled manner so as not to damage off site areas. There will be no injury to Colorado water rights as a result of this mining operation. No explosives will be used. All trash will be manages on site and hauled by a commercial trash company. • Applicant:VE Sc a (an u rH!J 6Lt'1 ,5 , 4.LC Case #: et Location: _ cf-c 16 r l of izszt v) F, -we ■ ■ ■� Miles ®.032565 0.13 0.195 0.26 EXHIBIT D RECLAMATION PLAN The reclamation of the site will take place after completion of mining. The topsoil will be stripped and stockpiled on the edge of the permit area. The banks of the pit will be sloped to a minimum slope of 4:1 then covered with topsoil to the same depth as found originally. The entire area will be seeded with a seed mix approved by the soil conservation service at a rate exceeding the recommended rate to ensure a good stand of grass. The recommended seed mixes and application rates are attached. The estimated cost of reclamation is as follows. Placement and preparation of topsoil $1,000 per acre Seeding and straw crimping of the site $800.00 per acre Grading and sloping $ 175 per acre Total reclamation cost $1,975 per acre x 10 acres $19,750 During the mining process the base elevation will be established and sloping work will be done. The only earthwork remaining after mining will be the placing of the topsoil. Map Legend Weld County Colorado Assessor Map Feet 0 500 00 1 inch = 1,142 feet 2,000 Map created on 9/17/2013 at 2:57:27 PM by mdixon Weld County GIS; 1400 N 17th Ave, Greeley, CO maps@co.weld.co.us; 970-304-6570 x 2520 THE 01) Lt' t /6WW6$TT3 l iota t) ALE. E Pic le (2/4-5 � 'his product has been developed solely for internal use only by Weld County. The GIS database and Ma in the product is subject to constant change and the accuracy and completeness cannot be and is not guaranteed. The designation of lots or parcels or land uses in the data base does not imply that the lots or parcels were legally created or that the land uses comply with applicable State or Local law. UNDER NO CIRCUMSTANCE SHALL THE PRODUCT BE USED FOR FINAL DESIGN PURPOSES. WELD COUNTY MAKES NO WARRANTIES OR GUARANTEES, EITHER EXPRESSED OR IMPLIED AS TO THE COMPLETENESS, ACCURACY, OR CORRECTNESS OF SUCH PRODUCT, NOR ACCEPTS ANY LIABILITY, ARISING FROM ANY INCORRECT, INCOMPLETE OR MISLEADING INFORMATION CONTAINED THEREIN. No part of the product may be copied, reproduced or transmitted in any form or by any means whatsoever, including, but not limited to, electronic, mechanical, photocopying, recording, scanning, or by any information retrieval system or any non -approved purpose without the express written consent of Weld County. O GIS Section Corner Township / Range Grid GIS Sections GIS Quarter Section Line GIS Section Line GIS Township Line GIS Range Line Parcels Highway Highway (Gravel) County Road (Paved) County Road (Gravel) Municipal Road (Paved) Municipal Road (Gravel) Other Road I(1RM 31 32 wN aF 'F ■8N„ 60W 5 4 59W 1 6 3 13 18 0711 -- i 60W 24 19 25 30 29 36 31 2 8 9 10 1 11 17 16 i 114 1 � 12 20 21 23 22 8W 6 7 4.18 13 •7N 24 8W 19 28 27 26 25 r 32 33 34 35 36 31 30 I 455 11111111111 Illlu III hull INN III III Ilul lul ull 185SLB 193-6 3602459 01/30/2009 02:15P Weld County, CO Rev: 8/89 1 of 7 R 36.00 0 0.00 Steve Moreno Clerk & Recorder STATE OF COLORADO BOARD OF LAND COMMISSIONERS OIL AND GAS LEASE NO. 9519.8 Containing 640.00 acres, more or less: Land Fund School THIS LEASE AGREEMENT, Dated this 21 "' day of February. 2008 made and entered into by and between the STATE OF COLORADO, acting by and through the STATE BOARD OF LAND COMMISSIONERS, hereinafter called Lessor and Centex Energy Company, 621 I7th Street, Suite #1020, Denver, CO 80293 hereinafter called Lessee: ASSIGNED WITNESSETH WHEREAS, Said Lessee has applied to Lessor for an oil and gas lease covering the land herein described, and has paid a filing fee in the amount of $20.00, plus a bonus consideration of $26,880.00 fixed by Lessor as an additional consideration for the granting of this lease, and Lessee agrees to pay an annual rental of $960.00 computed at the rate of $1.50, per acre or fraction thereof per year, WHEREAS, All the requirements relative to said application have been duly complied with and said application has been approved and allowed by Lessor; THEREFORE, In consideration of the agreements herein, on the part of Lessee to be paid, kept and performed, Lessor does lease exclusively to Lessee for the sole and only purpose of drilling for, development of and production of oil and gas, or either of them, thereon and therefrom with the right to own, except as set forth in the METHANE FROM COAL SEAMS paragraph herein, all oil and gas so produced and saved therefrom and not reserved as royalty by Lessor under the terms of this lease, together with rights -of -way, easements and servitudes for pipelines, telephone and telegraph lines, tanks and fixtures for producing and caring for such products, and any and all rights and privileges necessary for the exploration and operation of said land for oil and gas, the following described land situated in the County of Weld, State of Colorado, and more particularly described as follows: DESCRIPTION OF LAND ALL Surface Patents: No TOWNSHIP RANGE SECTION SURVEY 7N 59W 16 6th PM TO HAVE AND TO HOLD Said land, and all the rights and privileges granted hereunder to Lessee until the hour of twelve o'clock noon on the 21t° day of February, 2013, as primary term, and so long thereafter as oil and gas, or either of them, is produced in paying quantities from said land or Lessee is diligently engaged in bona fide drilling or reworking operations on said land, subject to the terms and conditions herein. Drilling or reworking operations shall be deemed to be diligently performed if there is no delay or cessation thereof for a period greater than 60 consecutive days unless an extension in writing is granted by Lessor; provided that such drilling or reworking operations are commenced during said primary term or any extension thereof or while this lease is in force by reason of production of oil and gas or either of them, or that such reworking is commenced within 60 days upon cessation of production for the purpose of re-establishing the same, and provided further that such production is commenced during such primary term or any extension thereof, or while this lease is in force by reason of such drilling or reworking operations or other production. METHANE FROM COAL SEAMS - Coalbed methane may be produced, saved and/or sold by a coal mining lessee from mineable coal measures and from roofs and floors of mineable coal measures and the gas shall be the property of that lessee provided that the gas is removed only as a mining safety procedure prior to or during mining. Gas that is uneconomical. to produce may be vented or flared provided that such venting or flaring complies with all Federal and State requirements. Gases produced by the oil and gas lessee from the mineable coal measures and from roofs and floors of mineable coal measures prior to, during, or after mining shall be the property of the oil and gas lessee under the terms of this lease. Oil and gas operations shall not render coal seams unmineable. EXPLORATION - Lessor reserves the right to conduct exploration on the leased land provided such exploration does not interfere with rights granted herein. In consideration of the premises, the parties covenant and agree as follows: 1. RENTAL - If lease is extended for any reason beyond primary term rental will be determined by Lessor. The rental in effect at the time production is established shall not be increased due to the term of this lease being extended by such production. Rentals set at the time of established production shall be paid during the remaining life of this lease, annually, in advance, on or before each anniversary date hereof. There shall be no refund of unused rental. 2. ROYALTY - Lessee shall account for any and all substances produced on the leased land and Lessee shall pay to Lessor a royalty on same in addition to the rentals provided. Products used on the leased land, unavoidably lost or flared on the leased land, may be exempt with approval of Lessor: (a) (b) On oil, one -eighth of the oil produced and saved from the leased land. At the option of Lessor, and with 60 days' noticg essor may take its royalty oil in kind, in which event Lessee shall deliver such royalty oil to Lessor on the leased land, free of cost or deduction, into the pipelines or storage tanks designated by Lessor, but Lessee shall not in such case be required to provide free tankage for any such oil for a longer period than 1 month after the same is run into tanks. With 60 days' notice to Lessee, Lessor may cease taking oil royalty in kind. When paid in cash, the royalty shall be calculated upon the fair market value of the oil at the well which shall not be deemed to be less than the price actually paid to Lessee at the well by the purchaser thereof; and in no event shall the royalties be based upon a market value at the well less than the posted price in the field for such oil, or in the absence of a posted price in the field for such oil, upon a market value at the well less than the prevailing price received by other producers in the field for oil of like grade and gravity at the time such oil is run into pipelines or storage tanks. On gas, including casinghead gas or other gaseous substance, one-eiahth of the fair market value at the well or of the price received by Lessee at the well, whichever is greater, of all gas produced and sold from the leased land or utilized off the land by Lessee. A copy of all contracts for sale of gas shall be furnished to Lessor. Where gas is sold under a contract that has been approved by Lessor, the fair market value of such gas for determining the royalties payable hereunder shall be the price at which such gas is sold under such contract. No approval by Lessor of the terms of any such agreement shall operate to make Lessor a party thereto or obligate it thereunder in any way. At the option of Lessor, and with 60 days' notice to Lessee, Lessor may take its royalty in kind. With 60 days' notice to Lessee, Lessor may cease taking gas royalty in kind. (c) All costs of marketing the oil and/or gas produced shall be borne by Lessee and such costs shall not directly or indirectly reduce the royalty payments to Lessor, except that marketing costs for Lessor's in -kind royalty shall be borne by Lessor. (d) If Lessor owns a lesser interest in the oil and gas deposits of the above described land than the entire and undivided fee simple estate, then the royalties and rentals herein provided shall be paid to Lessor only in the proportion which its interest bears to the whole and undivided fee. 3. RECORDS - Lessee agrees to keep and to have in possession complete and accurate books and records showing the production and disposition of any and all substances produced on the leased land and to permit Lessor, at all reasonable hours, to examine the same, or to furnish copies of same to Lessor upon request along with purchaser's support documentation. Lessor will not be unreasonable with requests. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than 5 years. All gas contracts and subsequent agreements and amendments shall be submitted to Lessor within 60 days of execution. 4. MEASUREMENTS - All production shall be accurately measured using standards established by the American Gas Association (AGA) and/or the American Petroleum Institute (API) and all measuring devices shall be tamperproof as nearly as possible. Oil royalties due within the terms of this lease shall be calculated on actual and accurate measurements within API standards unless a different means of measurement, subject to Lessor's approval, is provided. 5. PAYMENTS & REPORTS - All payments and reports due hereunder shall be made on or before the day such payments and reports are due. Nothing in this paragraph shall be construed to extend the expiration of the primary term hereof. Page 2 of 6 1111111111fir10121 amid1101iiinoii1111111! 3002459 09/30/2009 02:1sp Weld Coun 2 of 7 R 36.00 C 0.00 Steve Mn.e,,.. AII, C0_ Oil royalty payments and supporting documents shall be submitted prior to the last day of the calendar month following each month's sale of production, and gas royalty payments and supporting documents shall be submitted prior to the last day of the second calendar month following each month's sale of production. Payments and supporting documents for new wells shall be submitted prior to the last day of the third calendar month following first month's sale of production. All payments shall be made by cash, check, certified check or money order. Payments having restrictions, qualifications, or encumbrances of any kind whatsoever shall not be accepted by Lessor. A penalty for a late payment shall be charged as set forth in the PENALTIES paragraph herein. 6. PENALTIES - A penalty shall be imposed for, but not limited to, late payments, improper payments, operational deficiencies, violation of any covenant of this lease, or false statements made to Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of; but not limited to, interest, fees, fines, and/or lease cancellation. 7. LAW - The terms and conditions of this lease shall be performed and exercised subject to all laws, rules, regulations, orders, local ordinances or resolutions applicable to and binding upon the administration of lands owned by the State of Colorado, and to laws, rules and regulations governing oil and gas operations in Colorado. Violations shall result in penalties as provided for by law or as set forth in the aforementioned schedule or shall, at the option of Lessor, result in default as provided hereinafter. 8. SURRENDER - Lessee may at any time, by paying to Lessor all amounts then due as provided herein, surrender this lease insofar as the same covers all or any portion of the land herein leased and be relieved from further obligations or liability hereunder with respect to the land so surrendered; provided that no partial surrender or cancellation of this lease shall be for less than contiguous tracts of approximately 40 acres or Governmental lot corresponding to a quarter -quarter section; provided further that this surrender clause and the option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of its [elms express or implied. In no case shall any surrender be effective until Lessee shall have made full provision for conservation of the leased products and protection of the surface rights of the leased land. 9. ASSIGNMENTS - (a) Lessee, with written consent of Lessor, shall have the right to assign the entire leasehold interest of said Lessee in all or part of the land covered hereby, but not less however, than contiguous tracts of approximately 40 acres or Governmental lot corresponding to a quarter -quarter section for any partial assignment, and for approval of such assignment Lessor shall make an assignment charge in an amount to be determined by Lessor. Prior to written approval by Lessor of assignment of this lease, Lessee (assignor) shall not be relieved of its obligations under the terms and conditions herein, An assignment shall not extend the term of this lease. (b) If any assignment of a portion of the land covered hereby shall be approved, a new lease shall be issued to the assignee covering the assigned land, containing the same terms and conditions as this lease, and limited as to term as this lease is limited, and the assignor shall be released and discharged from all further obligations and liabilities as to that portion so assigned. (c) Lessee shall notify Lessor of all assignments of undivided percentage or other interests. Said interests will not be recognized or approved by Lessor, and the effect of any such assignments will be strictly and only between the parties thereto, and outside the terms of this lease; and no dispute between parties to any such assignment shall operate to relieve Lessee from performance of any terms or conditions hereof or to postpone the time therefor. However, if Lessee assigns 100 percent of said interest in this manner, a leasehold assignment must be received and approved by Lessor to assure that a leasehold interest is maintained by the record lessee. Lessor shall at all times be entitled to look solely to Lessee or his assignee shown on its books as being the sole owner hereof, and for the sending of all notices required by this lease and for the performance of all terms and conditions hereof. (d) Although not binding on Lessor, all instruments of every kind and nature whatsoever affecting this lease shall be filed in the records of the Mineral Department of Lessor. 10. OVERRIDING ROYALTY - Any and all reservations or assignments of overriding royalties shall not exceed 5 percent, including any overriding royalties previously provided for. In the event that production drops to an amount that would cause the well to be shut-in or to be plugged, then overriding royalties based on last in first Page 3 of 6 Ihill!IIII,1111111!1811111111111(III!III11111IIIIill! 3502459 09!30/2009 02:d5P Weld County. Co out, or prorated, may be suspended to allow the well, if possible, to be economic. A reservation or assignment of an overriding royalty interest shall not relieve Lessee of any of its obligations for payment of royalties to Lessor as provided by ROYALTY paragraph herein. II. OFFSET WELLS - Lessee agrees to protect the leased land from drainage by offset wells located on adjoining lands not owned by Lessor, when such drainage is not compensated for by counter -drainage. It shall be presumed that the production of oil and gas from offset wells results in drainage from the leased land, unless Lessee demonstrates to Lessor's satisfaction by engineering, geological, or other data that production from such offset well does not result in such drainage, or that the drilling of a well or wells on the leased land would not accomplish the purposes of protecting the deposits under the leased land. Lessor's decision as to the existence of such drainage shall be final, and Lessee shall comply with Lessor's order thereon or surrender this lease as to any such undeveloped acreage as designated by Lessor. 12. DEVELOPMENT - Upon discovery of oil and gas or either of them on the leased land, Lessee shall proceed with reasonable diligence to develop said land at a rate and to an extent commensurate with the economic development of the field in which the leased land lies. l3. UNITIZATION - COMMUNITIZATION - In the event Lessor permits the land herein leased to be included within a communitization or unitization agreement, the terms of this lease maybe deemed to be modified to conform to such agreement. When only a portion of the land under this lease is committed by an agreement, Lessor may segregate the land and issue a separate lease for each portion not committed thereunder; the term of such separate lease shall be limited as to the original term of this lease. The terms of the lease on that portion remaining in the unit shall be deemed to be modified to conform to such agreement. Nonproducing leases shall terminate on the first anniversary date of the lease following the termination date of the unit or part thereof modifying the lease, but in no event prior to the end of the primary term of the lease or the extension term of the lease. • 14. DISPOSAL WELLS - No well on State land shall be used as a disposal or injection well without a Disposal Well Lease approved by Lessor, 15. PRODUCTION - Lessee shall, subject to applicable laws, regulations and orders binding upon the administration of state lands, operate and produce all wells upon the leased land so long as the same are capable of producing in paying quantities, and shall operate the same so as to produce at a rate commensurate with the rate of production of wells on adjoining lands within the same field and within the limits of good engineering practice, except for such times as there exist neither market nor storage therefor, and except for such limitations on or suspensions of production as may be approved in writing by Lessor. Lessee shall be responsible for adequate site security on all producing properties. 16. SHUT -N WELLS - If Lessee shall complete a well on the leased land productive of oil and/or gas and Lessee is unable to produce such oil and/or gas due to a lack of suitable market therefor, Lessor may g rat Lessee suspension of his obligations to produce hereunder until a suitable market for such oil and/or gas can be found, and during any such suspension period, it shall be deemed that oil and/or gas is being produced hereunder in paying quantities. Except, however, that beginning on the anniversary date next, of the year of an extension of the lease by reason of a shut-in well, Lessee shall pay to Lessor a shut-in royalty equal to payment acre of the lease per annum in addition to the annual rental. The minimum amount of such shut-in royalty a ent shall be $320. Each year's shut-in royalty shall be forfeited to Lessor except for the shut-in royalty paid for the year during which the well begins production. The maximum extension of the lease, due to the existence of a shut-in well, shall be 5 years beyond the extension term as described in the EXTENSION paragraph herein. The granting of any further extensions shall be at the sole option of Lessor. 17. OPERATIONS - No exploration, drilling or production operation, including permanent installations, shall be within 200 feet of any existing building or other improvement, including water well or reservoir, without the written permission of the owner of said improvements. Lessee shall keep a correct log of each well drilled hereunder, showing by name or description the formations passed through, the depth at which each formation was reached, the number of feet of each size casing set in each well, where set, and the total depth of each well drilled. Lessee, within 30 days after the completion or abandonment of any well drilled hereunder, shall file in the office of Lessor a complete and correct log of such well, together with a copy of the electric log and the radioactivity log of the well when such logs, or either of them, are run; and also a copy of all drill stem test results, core records and analyses, record of perforations and initial production tests, if any. If any of the information required by this paragraph is contained in reports required to be filed with the Oil and Gas Conservation Commission of Colorado, the requirements of this paragraph for such information may be satisfied by such filing with said Commission, except for copies of the reports as are required by the following paragraph, and provided that all such information is immediately available to Lessor. Any proprietary information so submitted shall not be subject to public inspection under Colorado law. Lessee shall bury pipelines below plow depth. Lessee shall set and cement sufficient surface casing to Page 4 of 6 14111111111111111INIIIIIIIIIIII1111IIIIIIIIIIIIIIII 3502459 01/30/2009 02:15p Weld CperdV- cn protect the fresh water wells of the area. 18. NOTIFICATION - Lessee shall notify Lessor and the surface lessee or surface owner of the location of each drill site at least two weeks prior to commencing drilling operations thereon. Lessee shall notify Lessor before commencing to plug and abandon any well by copy of Lessee's request for approval or sundry notice of intent to plug and abandon. 19. BONDS - Lessee shall be liable for all damages to the surface of the land, livestock, growing crops, water wells, reservoirs, or improvements caused by Lessee's operations on said land. No operations shall be commenced on the land hereinabove described unless and until Lessee shall have filed a good and sufficient bond with Lessor, in an amount to be fixed by Lessor, to secure the payment for such damages as may be caused by Lessee's operations on said land and to assure compliance with all the terms and provisions of this lease, the laws of the State of Colorado, and the rules and regulations thereto appertaining. A bond may be held in effect for the life of production of any well. 20. SETTLEMENT - Lessee shall not remove any machinery, equipment or fixtures placed on said land, other than drilling equipment, nor draw the casing from any well unless and until all payments and obligations' currently due Lessor under the terms of this lease shall have been paid or satisfied. Any machinery, equipment or become the property of Lessor. fixtures left on this land for a period of more than 6 months after the expiration hereof, shall automatically 21. OTHER DISCOVERY - Should Lessee discover any valuable products other than oil and gas, on or within the leased land, Lessee shall within 7 days report such discovery to Lessor, in which event Lessee and Lessor may negotiate a provision for production of such discovery. 22. WATER - This lease does not grant permission, express or implied, to Lessee for water exploration, drilling or establishing water wells without written permission of the surface owner and other required state permits. If Lessee desires to establish or adjudicate any water right for beneficial use on the leased land in direct relationship to lease operations this adjudication or application shall be in the name of Lessor if Lessor is the surface owner. Water for use off the lease may only be used with permission of the surface owner and a charge may be imposed for this use. 23. DEFAULT - Upon failure or default of Lessee to comply with any of the terms and provisions hereof; including but not ted to the failure to comply with laws, rules and regulations governing Colorado oil and gas operations and'Sric y essor's policy now or hereafter in force relative to this lease, provided that no policy made after theca rh€fr 's lease affecting either the length of the term hereof, the rate of royalty,or a hereunder{ t payment y ¢r no .g. �rA�ryi reof, shall operate to alter the terms and conditions of this lease, Lessor is hereby author/44d t�hnand 7i ing, as hereinafter provided, to cancel this lease as to all of the leased land so claimer pasee5sed_by{pLepee ereunder. In the event of any such default or failure, Lessor shall, before making any sucfi cancellation, sent:le ssee by certified mail, to the post office address of said lessee as shown by the records of Lessor a notice'of tention to cancel for such failure or default, specifying the same, stating that if within 30"daSfrgrµ,th?d%,e mailing said notice, Lessee shall correct such failure or default to the satisfaction of Lessor ro Ince Din, be made. If such failure or default is not corrected within 30 days after the mailing of such n0tic.e, alifit.tc ee does not request a hearing on such notice within 30 days, this lease will terminate and be cancelledTiy operation of this paragraph without further action by Lessor, or further notice to Lessee. 24. EXTENSION - If, at the expiration of the primary term of this lease, production of oil or gas has not been obtained on the leased premises but drilling operations are being conducted thereon in good faith and in a good and workmanlike manner, Lessee may, on or before the expiration of the primary term, make written application to Lessor for an extension of this lease for a term equal to one year. Such application must be accompanied bye payment of S 10 per acre or portion thereof. This lease shall not be extended for more than one year past the primary term unless production in paying quantities has been obtained or unless extended by some other provision hereof. 25. HOLD HARMLESS - Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connection with operations on this leased land or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. 26. CONDEMNATION - If the leased land shall he taken in any condemnation proceeding, this lease shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for severed oil and gas reserves, in which event a percentage of such specific awards equal to royalty as specified under Item 2 (Royalty) shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by Lessee per terms in the SETTLEMENT paragraph herein. If only a portion of the leased land is taken by condemnation, Lessee may, at its option, terminate this lease or terminate only that portion of the lease so taken. Page5 of 6 11111111111111111I01111111111111!1111III IIIII1111!III 3502459 01/30/2009 02:15? Weld County, CO _ _ 27. ERRORS - Every effort is made by Lessor to avoid errors in all procedures including but not limited to auction listings and lease preparation. Lessor shall not be liable for any inconvenience or loss caused by errors which may occur. Lessee shall notify Lessor immediately upon discovery of any errors or discrepancy whatever. 28. ARCHAEOLOGY - Lessee shall not destroy, disturb, mar, collect, remove or alter any prehistoric or historic resources of any kind on state lands as provided by law. These resources include but are not limited to all artifacts of stone, wood or metal, pictographs, structures, and bones. A discovery of anything of prehistoric or historic nature shall be reported to Lessor or the State Archaeologist immediately. 29. DEFINITIONS - A. "Gas" as used herein shall mean all gases (combustible and noncombustible), including but not limited to all gaseous hydrocarbons, gaseous compounds, carbon dioxide, and helium. B. "Oil and gas" as used herein shall include all substances produced as by-products therewith, including but not limited to sulfur. C. "Paying quantities" as used herein shall mean and refer to quantities of ail and gas or of either of them sufficient to return to Lessor an amount equal to the shut-in royalty. 30. TAXES - Lessee shall pay all property taxes, or payments in lieu of taxes, lawfully assessed for the leased premises or improvements thereon. 31. HEIRS AND ASSIGNS - The benefits and obligations of this lease shall inure to and be binding upon the heirs, legal representatives, successors or assigns of Lessee; but no sublease or assignment hereof, or of any interest herein, shall be binding upon Lessor until the same has been approved by Lessor as explained in the ASSIGNMENTS paragraph provided. 32. IN WITNESS WHEREOF, Lessor has hereunto signed and caused its name to be signed by the STATE BOARD OF LAND COMMISSIONERS, with the seal of the office affixed, and Lessee has signed this agreement, the day and year first above written. Recommended: Mark W. Davis, Minerals Director STATE BOARD OF LAND COM RS Contex Energ LESSEE Sea or Authority r ATTEST • State of Colorado County of Denver The foregoing instrument was aclmowledged before me this 14th day of April 2,en9 , by Cary Butler as being authorized to execute same. LAUREN BUCHHOLZ Notary Public State of Colorado mission Expires March 16, 2009 Notary Public /wit, $1e-" `fr My Commission Expires March 16, 2009 Page 6 of 6 I111111 I i 1111111I I I I I I I I 11 I I I I I 111111 r 1111111111111111 COLORADO STATE BOARD OF LAND COMMISSIONERS ASSIGNMENT RECORD FULL _X PARTIAL ASSIGNMENT OF LEASE NO. 9519.8 1. In consideration of One dollar ($1.00) and other valuable consideration Contex Energy Company (4ssignm'. please print nr rypel 2. the within named lessee(s). does (do) hereby assign, transfer and (or) sell all rights, title, interest and (or) claim in and to 3. this lease in its entirety, or namely the of the Section, can. niacre.s nm//)nm/l) 4. Township and Range described in this lease, unto 5. address is 500 N. Water St„ Ste, 1100S rrveec y,nmme or p o Rat :�'n: — LSuhdivisfon n[,Section) Eseniay Oil and Gas Ltd /Assignee. pleoae prim nr type, Corpus Christi Texas 78471 /rug', (oma) rrpl whose 6. who will he the new lessee of record for all, or that part of this lease above described, to have, hold and enjoy all rights and 7, covenants of this lease a who w/illa cbpt and abide by all laws. rules, regulations and responsibilities pertinent to and (or) S. contained herein and cofonh from 12:00 noon on this 18th day of November , A.D., 20 08 10. c Gary Eutler, President deal nr dulhnrinr I I. Signed and acknowledged before me this 1801 day of November 12. My commission expires March '16 3. 14. Est j ttj Ot1e-E CYQS Lauren Buchholz ✓Lee ectcPPvi i.4vacQ ',Seal ru. whorinv Commisalon Expires March 16, 2009 I5. Signed and acknowledged before me this r � day of /6. ,My commission expires Prp' �r.: I , A.D. 20 , A,D., 20 09 LISA MARIE MELISSE Notary Public, Slate of Texas Comm. Exp. 04-16.11 APPROVAL OF ASSIGNMENT This assignment approved by order of the State Board of toners this day of January Recommended r A.D„ 20 08 LAUREN BUCHHOLZ Notary Public State of Colorado ee der ,A,D.,20 0r A,D„ 20 09 Davis MINERALS DIRECTOR 1 /1111111111111111111 IIIII! 0!111I IIIII III 1111111111111 3602459 nvm/onn¢ no',eo ,,,_„ Or ASSIGNMENT OF OIL AND GAS LEASES KNOW ALL MEN BY THESE PRESENTS: That the undersigned, Contex Energy Company, 621 17th Street, Suite 1020, Denver, CO 80293, hereinafter called "Assignor" for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration to it paid by Esenjay Oil and Gas, Ltd, of 500 N. Water Street, Suite 1100S, Corpus Christi, TX 7847I, the receipt and sufficiency of which is hereby acknowledged, and subject to the conditions hereinafter stated, does hereby bargain, sell, transfer, assign and convey unto the said Esenjay Oil and Gas, Ltd, hereinafter called "Assignee", its successors and assigns, the Oil and Gas Leases, described in EXHIBIT "A" attached hereto and made a part hereof, and all rights thereunder or incident thereto, and personal property thereon or used or obtained in connection therewith which said leases cover the lands identified and described therein situated in Weld County, Colorado. Reference is hereby made to said leases, and the recordings and/or filings thereof in Weld County or the State of Colorado Board of Land Commissioners, for further description and all other lawful purposes. TO HAVE AND TO HOLD, the leasehold estates, interests, rights, and property hereby assigned and conveyed unto the said Assignee herein, its successors and assigns, subject to and in accordance with the terms, provisions, and conditions of said lease, and Assignee by acceptance hereof, agrees to comply with and hereby assumes all of the express and implied covenants and obligations of the original lessee under said leases. And for the consideration aforesaid, the Assignor for itself and its successors and assigns, does covenant with said Assignee, its successors and assigns, that Assignor is the lawful owner of said leasehold estate and property herein assigned, and that Assignor has good right and authority to sell and convey same, that said rights, interests and property are free and clear from all liens and encumbrances, and that Assignor, its successors and assigns, will warrant and defend the same against the lawful claims and demands of all persons whomsoever claiming or to claim the same or any part thereof, by, through or under Assignor, but not otherwise. IN WITNESS WHEREOF, this instrument is executed this the 18th day of November, 2008. Contex Energy Company 111111!11111111111111111111 IIIII IiJill! III 11111 IIII Jill 3790025 09/02/2011 11:56A Weld County, CD 1 of 2 R 16.00 Q 0.00 Steve Moreno Clerk & Recorder By STATE OF COLORADO COUNTY OF DENVER ary Butler, President BEFORE ME, the undersigned authority, allotary Public, on this day personally appeared Gary Butler, to me known to be the identical person who subscribed the name of the maker thereof to the foregoing instrument as its President and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set forth, Given under my hand and seal of office, this the 18Th day of November, 2008. My Commission Expires: March 16, 2009 Notary Public: Lauren Buchho Address: Denver, CO LAUREN BUCHHOLZ Notary Public State of Colorado My Commission Expires Mach 16, 2009 11111111111 IIIIII 111111 III Ell 111111 III Hill IIII IIII 3790D25 09/02/2011 11:56A Weld County, CO 2 0l 2 R 16 00 0 0.00 Steve Moreno Clerk & Recorder 8002 'Ty kienigaj N • CM ° r7 a O O n*n ro � 0• 0- G' 0 d n 7 0 a NH . 0 a J r p r 20 cp v. 0' Q `W'd ql9 7saA 09 800Z`IZ T1enugaj tm NJ .00 S00Z `t Z,Gerugaj o y O y 6 g 0 n r O n o 3 a nuedwo3 d21au3 xaluop Q 8002 `I Z /Cm -oiled O 0 J Z A y W'd 419 1saM 6S a p N A O a O a a 3, O01 2] O C 0 ry 0 M m O a n P.' " a a n £ n a a 0 w v - g .27 °. q m o. d °. R na^ 3 r " o °+ ° R, o "o g..c "o a ° y 0 y O „V,,,LIUIHXH 0 n o a y 0 012. 0.5 a n o Y. • O IL' in e IC", 3' rt rd tl9 4 n p O 0 n Oc To N O O ,0 3 0 • 'y O n O Y m m n 0 a 0 K EXHIBIT F LIST OF OTHER PERMITS AND LICENSES REQUIRED 1. Road access permit from Weld County. May not be necessary since there is an existing access. 2. Air quality permit from CDPHE for the mining equipment used in the operation EXHIBIT G SOURCE OF LEGAL RIGHT TO ENTER Attached is a copy of the lease executed with the State Board of Land Commissioners granting the right to mine the subject property. State of Colorado Department of Natural Resources STATE BOARD OF LAND COMMISSIONERS 1127 Sherman Street, #300 Denver, Colorado 80203 MINING LEASE NO. GL 3466 This Mining Lease (the "Lease"), is made in duplicate and entered into this 1st day of August, 2013, by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafter referred to as, "Lessor", and VESCO Consulting Services, LLC., P.O. Box 336626, Greeley, CO, 80633, hereinafter referred to as "Lessee:: WITNESSETH: Lessor, for and in consideration of the sum of recei it of which is hereby acknowledged as payment of the filing fee in the amount o ` first year's rent in the amoun of.- and a bonus in the amount of $ -0- and in further consideration of Lessee's agreement to pay per acre or fraction thereof annually as rental in advance of the anniversary date of this lease so long as said lease shall remain in effect; and in further oration of the terms, conditions and agreements herein and of the payment of royalties reserved herein, to be kept and performed by Lessee, its successors and assigns, does hereby lease to Lessee the right and privilege of exploring and prospecting for, developing, and mining of and taking of sand and gravel minerals from the lands herein described, situated in the County of Weld, State of Colorado, to wit: ACRES 160.00 FUND: School SUBDIVISION NE SEC-TWP-RGE PATENTS 16 -7N -59W None containing 160.00 acres, more or less, (the "Leased Premises") together with the right to use as much of the surface as may be reasonably required, including the right to reasonable ingress and egress; the right to make excavations, stockpiles, and other improvements as may be reasonably necessary in the mining and removal of said minerals; subject, however, to all existing easements and rights -of -way of third parties, as detailed on Exhibit A to this agreement, and the rights of surface lessees and surface owners, and further subject to the terms, conditions and agreements set out in this Lease. The above -mentioned rights may be exercised in connection with mining on other or adjacent lands only when mining on such lands is carried on in conjunction with the actual mining on the Leased Premises. The benefits, terns, and obligations of this Lease shall extend to and be binding upon the heirs, executors, administrators, successors, or assigns of the respective parties hereto. RESERVING, however, to Lessor: A. Ail rights and privileges of every kind and nature, except as are herein specifically granted. B. The right to use or lease said premises or any part thereof at an ,,time for any purpose, including the right to explore and prospect said premises, which use and leasing Mir premises shall be for purposes other than and not inconsistent with the rights and privileges herein specifically granted. C. The right to dispose of or lease the surface where Lessor is the surface owner. D. The right at all times during the life of this lease to go upon said premises and every part thereof for the purpose of inspecting said premises, and the books of accounts and records of mineral workings therein, and of ascertaining whether or not said Lessee and those holding thereunder by and from it, are carrying out the terms, covenants and agreements in this lease contained. exceed the rate of increase of the average Producer's Price Index for Construction Sand, Gravel and Crushed Stone for the previous 5 -year period, as published by the U.S. Department of Labor, Bureau of Labor Statistics. Failure to comply with any new royalty rate set by Lessor may subject this lease to cancellation by thirty -day written notice by Lessor. Reporting of production royalty that is credited against advanced minimum royalty is also due on or before the last day of each calendar month for mining during the preceding calendar month. 3. EXTENSION -- Lessee may have a preferential right to renew the lease or to receive a new lease, whichever may be determined by Lessor to be in the best interest of the State, under the following conditions: A. An advance minimum royalty, the amount to be negotiated before expiration of the lease, will be due and payable annually commencing on the date this lease is renewed or a new lease is executed and shall continue until the expiration of the new or renewed lease. This amount may be adjusted by Lessor at the end of each five-year period of the renewed or new lease. B. Lessee shall furnish to Lessor satisfactory evidence of plans for mining during the term of the renewed lease or during the tenn of a new lease. C. Lessee shall furnish adequate geological evidence to Lessor that the acreage subject to the renewed or new lease is in fact an integral part of and contains reserves in a logical mining unit. Whether the acreage is or is not a part of a logical mining unit will be determined by Lessor. D. An extension of this Lease as determined by Lessor would be in the best interest of Lessor. 4. EXTENSION BY PRODUCTION — The Lease may continue in effect for a Secondary Tenn of 10 years to the 1st day of August, 2033 as long as sand and gravel are being produced in paying quantities from the Leased Premises. Paying quantities is defined as production and sales of a quantity sufficient to return to Lessor production royalty payments of a minimum of SFr year. Cessation of production for a period in excess of 180 days will automatically remove lease from producing status unless otherwise agreed to in writing by Lessor. 5. ANCILLARY USE -- Lessee may remove approved minerals, and place on the Leased Premises stock piles of material mined from the Leased Premises and other such equipment as is approved by Lessor for this removal and processing. All temporary ancillary uses such as concrete plants, asphalt plants, accessory equipment, offsite aggregate materials and any other uses not specifically mentioned herein will be subject to the approval of Lessor, which approval may require a yearly rental payment to Lessor of not less than Two thousand and no/100 Dollars ($2,000.00) per acre. Haul roads and/or access roads which do not directly benefit the Leased Premises will be subject to a separate permit and approval of Lessor. REPORTS AND RECORDS -- After operations begin, it is agreed that on or before the last day of each month during the term of this lease Lessee shall submit a sworn, verified, written report to Lessor, in which report shall be entered and set down the exact amount in weight of all products and the assay thereof mined and removed from said Leased Premises during the preceding calendar month. Lessee agrees to keep and to have in possession complete and accurate books and records showing the production and disposition of any and all substances produced on the Leased Premises and to permit Lessor at all reasonable hours, to examine the same or to furnish copies of same to Lessor within 60 days following written request along with purchaser's support documentation. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than 10 years. If any such examination shall reveal, or if either party shall discover any error or inaccuracy in its own or the other party's statement, payment, calculation, or determination, then proper adjustment or correction thereof shall be made as promptly as practicable thereafter, except that no adjustment or correction shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. Page 3 of 11 If an assignment of a part of this Lease is approved, a new lease designated as an assignment lease will be issued to the assignee covering the lands assigned for the balance of the term of the base lease on the mining lease form in use at the time of assignment and limited as to term as said lease is limited. The assignor will be released and discharged from all further obligations for such lands assigned, as if the same had never been a part of this Lease. 11. ASSIGNMENT CONSIDERATION -- The consideration for approval of assignment by Lessor shall be 10% of the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence of the value of these considerations shall be mandatory, in affidavit form, which form shall be presented to Lessor along with the other assignment instruments in order to obtain Lessor's approval for the assignment. An assignment does not constitute a new lease but is a continuation of the base lease. Any attempt to withhold this information shall be construed as an attempt to defraud the State of Colorado and shall render this lease null, void and nonexistent, and all moneys paid to Lessor shall be forfeited to Lessor. In addition, the current statutory fees will be paid at the time the assignment record form is submitted. 12. WEIGHTS -- It is agreed that all ores, minerals and other materials mined and taken from the Leased Premises shall be weighed and assayed and the weight and assay thereof shall be entered in due form in weight and assay records kept for such purposes by Lessee. Ton means 2000 pounds. Ton shall be determined by Colorado State certified scales or other methods approved by Lessor. 13. STEWARDSHIP TRUST STIPULATION-- Lessor shall specify certain stipulations with respect to use of the surface if said surface is included in the Stewardship Trust prior to the issuance of this Lease. 14. MINING METHODS -- Only mining methods that will insure the extraction of the greatest possible amount of minerals consistent within the laws and with prevailing good mining practice shall be used. 15. OPERATION PLAN -- All plans for exploration and mining shall be submitted to Lessor for approval by Lessor before such operations begin. These plans will include, but not be limited to, location of additional roads, location of access points to the Leased Premises, and location of any cattle guards or gates. These plans shall include provisions for control of weeds. 16. ENVIRONMENTAL ANALYSIS -- Lessor may require that Lessee submit an environmental analysis for approval by Lessor before any exploration or mining begins. 17. RECLAMATION -- Lessee shall submit all plans for restoration and reclamation of Leased Premises to Lessor for Lessor's approval before submitting the appropriate permit or permits pursuant to the Colorado Mined Land Reclamation Act 34-32-101 ET SEQ., C.R.S. 1973 as amended. Rules and regulations as set forth by the Division of Reclamation, Mining, and Safety for recovery and restoration of mined land will apply where applicable to the Leased Premises. Variations from the reclamation plan as originally submitted to the Board for approval may be granted only with the written approval of Lessor. 18. LESSOR'S APPROVAL -- Whenever approval by Lessor is required or contemplated by Lessee, approval must be in writing and shall be optional and shall be within the sole and absolute discretion of Lessor. 19. OTHER STATE AGENCIES -- Lessor may determine that instruments and documents required by other State agencies satisfy certain requirements of this lease. In the event that Lessee is required to file instruments and Page 5 of 11 Lessee shall, upon execution of this lease, at its cost, prepare a Notice, pursuant to C.R.S. 1973, § 38-22-105 and cause the same to be posted for the purpose of protecting Lessor against any liens or encumbrances upon the Leased Premises by reason of work, labor, services or materials contracted for or supplied to Lessee. 26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until Lessee or Lessee's agent has filed a good and sufficient bond with Lessor in an amount fixed by Lessor, to secure the payment for damages caused by Lessee's or Lessee's agent's operations on said lands. Lessor reserves the right to grant relief from the foregoing bond requirements. Lessor may require such bond to be held in full force and effect for one year after cessation of operations for which the bond was intended. This requirement may be waived in favor of the requirements of the Division of Reclamation, Mining, and Safety. 27. WATER -- If Lessee initiates or establishes any water rights for which the point of surface diversion or ground water withdrawal is on the Leased Premises, title to such water rights shall, upon termination of the lease, become the property of the surface owner without cost, and title to the water rights shall be conveyed to the surface owner immediately upon termination, except that if Lessor is the surface owner the water right shall be taken in the name of Lessor in the first instance and shall be the property of Lessor without cost. 28. SURRENDER AND RELINQUISHMENT -- Lessee may, at any time, by paying to Lessor all amounts then due as provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the lands herein leased and be relieved from further obligations or liability hereunder with respect to the lands so surrendered; provided that no partial surrender or cancellation of this lease shall be for less than tracts of approximately forty (40) acres or governmental lot corresponding to a quarter -quarter section, the rental being reduced proportionately. This surrender clause and option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of its terms, express or implied, but in no case shall surrender be effective until Lessee shall have made full provision for conservation of the minerals and protection of the surface rights of the Leased Premises as may be determined by Lessor. Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective unless and until all reports, documents and information of any kind required to be submitted to Lessor under this lease, or to such state agencies as provided in this lease have been submitted to Lessor or such state agency. 29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiration of its term, and all obligations of Lessee under this lease are satisfied, all Lessee's improvements, equipment, man-made objects of any type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to the reclamation plan, shall be removed from the Leased Premises within six months from the date of such termination at Lessee's expense. Such removal is to be accomplished without unnecessary waste or damage to the premises and Lessee shall restore the surface of the Leased Premises to the same condition as immediately prior to the execution of this lease as it pertains to such removal. All improvements and equipment remaining on the Leased Premises six months after the termination hereof shall be forfeited to Lessor, at Lessor's discretion, without compensation and without necessity of execution of additional documents. 30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, this lease shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for severed minerals reserves, in which event a percent of such specific award(s) equal to royalty shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by Lessee per terms in the RIGHT OF REMOVAL paragraph herein. If only a portion of the Page 7 of 11 and royalties due Lessor, or to protect Lessor against liens, or to indemnify Lessor against any loss or damage sustained by Lessor by reason of the default of Lessee, for which purpose Lessor is hereby given a lien upon all such property, improvements, and equipment, which lien shall attach as the same are placed upon the premises. In the event Lessor shall foreclose the lien in this article given to Lessor by Lessee, Lessor may itself be a purchaser at any sale thereof under such foreclosure. Upon the termination of this lease for any cause, if Lessee shall remain in possession of said premises, Lessee shall be guilty of an unlawful detainer under the statutes in such case made and provided, and shall be subject to all the conditions and provisions thereof and to eviction and removal, forcibly or otherwise, with or without process of law, as above provided. 34. TAXES -- Lessee shall be liable for all taxes lawfully assessed on property of Lessee located on the Leased Premises. IN WITNESS WHEREOF, Lessor has caused these presents to be executed in duplicate by the State Board of Land Commissioners and sealed with the official seal of said Board, and Lessee has hereunto set his hand and seal, all on the day and year first above written. - Recommended: gst- hillip J. Courtney, Minerals Leasing Mar ATTEST State of t'ii uClc County of $ g 0, SSOR: TE BOARD OF LAND COMMISSIONERS ,n e ilonas, Minerals Director ESSEE: VESCO Consulting Services, LLC By: Michael Miller, President The foregoing instrument was acknowledged before me this Mt day of -_oiy- 4i rr I t ✓ as being authorized to execute same. (SEAL) TARA BRISBY Notary Public State of Colorado My Commission Expires January 06, 2015 Page 9 of 11 mimeo' , "Di rci by Notary Public,N\ thi.a My Commission Expires 0-1p-20ij EXHIBIT A SAND AND GRAVEL LEASE # GL 3466 dated August 1, 2013 between State of Colorado, acting through the State Board of Land Commissioners, Lessor and VESCO Consulting Services, LLC, Lessee Existing leases, right -of ways, and agreements: Legal Description: NE %, Section 16, T7N, R59W (66 PM), Weld County Lease # Lessee Lease Type AG 45997 Roy Ashbaugh Grazing OG 9519.8 Esenjay Oil & Gas, Inc. Oil & Gas ROW 1630 Morgan County Rural Electric Association Right -of -Way Total Lease Acreage: 160.00 Page 11 of 11 EXHIBIT H MUNICIPALITIES WITHIN A 2 MILE RADIUS There are no municipalities within a 2 mile radius of the subject property. La? C O a) U 2 Co a al-E' U co p m WELD COUNTY COLORADO LAND RECORDS AFFIDAVIT OF INTERESTED LAND OWNERS SURFACE ESTATE THE UNDERSIGNED, States that to the best of his or her knowledge the attached list is a true and accurate list of the names, addresses, and the corresponding Parcel Identification Number assigned by the Weld County Assessor of the owners of the property (the surface estate) within 500 feet of the property being considered. This list was compiled utilizing the records of the Weld County Assessor available on the Weld County Internet Mapping site, http://www.co.weld.co.us, and has not been modified from the original. The list compiled for the records of the Weld County Assessor was assembled within thirty days of the applications sub ion date. Signature et -A• 137 Date Property Owners Within 500 ft. of Parcel # 072116000001 Account Parcel Owner Mailing Address R1049086 072117000008 AMBER WAVES 25210 HWY 392 GREELEY CO 80631 R4945707 072115300004 ARCHULETAJESSE 39140 CR 115 NEW RAYMER CO 80742 R4945707 072115300004 ARCHULETA STEPHANIE R4417906 072110300001 ASHBAUGH KEITH LIVING TRUST 2000 S DAYTON STREET APT 218 DENVER CO 802475721 R4945607 072115100003 ASHBAUGH KEITH LIVING TRUST 2000 S DAYTON STREET APT 218 DENVER CO 802475721 R4417906 072110300001 ASHBAUGH SHIRLEY LIVING TRUST R4945607 072115100003 ASHBAUGH SHIRLEY LIVING TRUST R1050586 072122000005 BRENINGER JAMES L R1050586 072122000005 BRENINGER JILL E 13000 PLUMAS WOOD LANE BAKERSFIELD CA 93314 R1046986 072109000003 CASTOR LANDS LLC 22791 HWY 39 WELDONA CO 80653 R1048986 072116000001 COLORADO STATE OF 600 GRANT ST STE 640 DENVER CO 80203 N1049286 072117000009 CUNNINGHAM C D ESTATE CIO WALTER ZOTT 1887 MARGIE LANE CASTLE ROCK CO 80104 N0083488 072122000005 DIVERSIFIED OPERATING CORPORATION C/O TERRY CAMMON 10455 W 73 PL ARVADA CO 80005 N1000298 072117000009 FAY BETTY MARIE (50% INT) 583 AVENIDA MAJORCA UNIT B LAGUNA WOODS CA 92637 R1050186 072120000007 FORD PATTY L 2202 69 AVE GREELEY CO 80634-7919 R1050286 072121000002 FORD PATTY L 2202 69 AVE GREELEY CO 80634-7919 Account Parcel Owner Mailing Address N1019803 072108000006 HAWKEN BROWN CAROLYN (50%) N1050686 072122000005 HODYC BARBARA & RUSHTON ALICE CIO BARBARA A HODYC 139 IDLEWILDE BLVD COMFORT TX 78013 N1000298 072117000009 KANE WINIFRED JUNE (50% INT) R1049186 072117000009 LIVENGOOD CONNIE J M0149990 072108000006 LIVENGOOD MIKE 40501 CR 113 NEW RAYMER CO 80742 R1046786 072108000006 LIVENGOOD MIKE L 40501 CR 113 NEW RAYMER CO 80742 R1049186 072117000009 LIVENGOOD RONALD L 39961 COUNTY RD 127 NEW RAYMER CO 80742 M0040202 072108000006 LIVENGOOD SHANNA 40501 CR 113 NEW RAYMER CO 80742 M0040102 072108000006 LIVENGOOD SHANNA 40501 CR 113 NEW RAYMER CO 80742 N1050686 072122000005 OSWILL MYRNA N1047086 072109000003 PEC MINERALS LP C/O KIRWOOD DARBY INC 307 W7 ST STE 1110 FORT WORTH TX 76102 N1050786 072122000005 PEC MINERALS LP C/O KIRWOOD DARBY INC 307 W7 ST STE 1110 FORT WORTH TX 76102 N1019803 072108000006 SANKEY PAMELA BROWN (50%) P O BOX 28535 BELLINGHAM WA 98228 The following is an example that you may wish to use for the Notice required for Rule 1.6.2(1)(b). NOTICE This site is the location of a proposed mining operation. (Name of the Applicant/Operator) whose address and phone number is (Address and Phone Number of the Applicant/Operator) Pao=„ss,s. - --, cJ ea6,3 9,e,=-ks has applied for a Reclamation Permit with the Colorado Mined Land Reclamation Board. Anyone wishing to comment on the application may view the application at the (County Name) 1 la County Clerk and Recorder's Office, (Clerk and Recorder's Office Address) 1402 N. 17th Ave, Greeley CO , and should send comments prior to the end of the public comment period to the Division of Reclamation, Mining and Safety, 1313 Sherman St., Room 215, Denver, Colorado 80203. Certification: ',Michael Miller , hereby certify that I posted a sign containing the above notice for the proposed permit area known as the (Name of Operation) ®, on (Date Posted) SIGNATURE DATE M:\ ,`ahec clvsfottneHsrdrockl 1 D.doc - An example Public Notice which meets the requirements of the Statutes is shown below. The blanks, which require dates, will need to be filled in according to the following instructions. PLEASE READ CAREFULLY. Publication Instructions: Date of commencement and date of completion should represent the dates which you feel most accurately describe the life of the operation. For all Limited Impact (110) types of operations, this notice must be published once within ten (10) days of the date the application is considered submitted to the Division of Reclamation, Mining, and Safety (the "Division"). The final date for receiving comments is ten (10) days after the date of publication or the next regular business day. All notices must be published in a newspaper of general circulation in the locality of the proposed mining operation and mailed to the landowners as set forth in the Construction Materials Rules and Regulations. Since the date for consideration of your application may change, DO NOT include it in this notice. For a complete discussion of the notice procedures and objections, please refer to C.R.S. 34-32.5-110(7)(c), 114 and 115. *******************:;:************y:***:kx:;c:k**dv.:*:r*:tv.:*8:***********x*v,:*********************:k*:t*�:d:k8' *******8: .*** PUBLIC NOTICE (Operator Name) Vesco Consulting Services, LLC ; (Address and Phone Number) _, has filed an application for a Construction Materials Limited Impact (110) Reclamation Permit with the Colorado Mined Land Reclamation Board under provisions of the Colorado Land Reclamation Act for the Extraction ofConstruction Materials. The proposed mine is known as the (Name of the Mine) GoodMiller Pit , and is located at or near Section 16 , Township 7.0 , Range 59.0 , Prime Meridian. The proposed date of commencement is November 1, 2013 , and the proposed date of completion is November 1, 2023 . The proposed future use of the land is (Future Landuse) Additional information and tentative decision date may be obtained from the Division of Reclamation, Mining, and Safety, 1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567, or at the (County Name) Weld County Clerk and Recorder's office; (Clerk and Recorder's Address) 1402 N. 17th Ave, Greeley, co , or the above - named applicant. A complete copy of the application is available at the above -named County Clerk and Recorder's office and at the Division's office. Comments concerning the application and exhibits must be in writing and must be received by the Division of Reclamation, Mining, and Safety by 4:00 p.m. on (Final Date for Comments) Please note that under the provisions of C.R.S. 34-32.5-101 et seq. Comments related to noise, truck traffic, hours of operation, visual impacts, effects on property values and other social or economic concerns are issues not subject to this Office 's jurisdiction. These subjects, and similar ones, are typically addressed by your local governments, rather than the Division of Reclamation, Mining, and Safety or the Mined Land Reclamation Board M:\min\share\vsforms\07-07-01 vsforms\Construction110 07/23/2007 The following is an example that you may wish to use for the Notice required for Rule 1.6.2(1)(6). NOTICE This site is the location of a proposed mining operation. (Name of the Applicant/Operator) ViSco (v1T7a ,- whose address and phone number is (Address and Phone Number of the Applicant/Operator) P. o, 3;b)S tp, Tao } has applied for a Reclamation Permit with the Colorado Mined Land Reclamation Board. Anyone wishing toq`o �3^ comment on the application may view the application at the (County Name) �J4 7 County Clerk and Recorder's Office, (Clerk and Recorder's Office Address) 1}50 p fir, G' , and should send comments prior to the end of the public comment period to the Division of Reclamation, Mining and Safety, 1313 Sherman St., Room 215, Denver, Colorado 80203. Certification: r, tom— , hereby certify that %posted a sign containing the above notice for the proposed permit area known as the (Name of Operation) (-6S0)'I+t IW-14 - 17/ 1 , on (Date Poste€1) 1-12- 13 giA.aolittA SIGNATURE SIGNATI DATE 13 M Arrinlsbarlvsfoems&Hardrock11D.doc -- :;*.td,:: a! re rah* A'ALOSSAFc 44100ttalitifr THIS SITE IS THE LOCATION OF A PROPOSED MINING OPERATION. VESCO CONSULTING SERVICES, LLC., WHOSE ADDRESS IS PO BOX 336626, GREELEY, COLORADO 80633, 970-356-1853, HAS APPLIED FOR A RECLAMATION PERMIT WITH THE COLORADO MINED LAND RECLAMATION BOARD. ANYONE WISHING TO COMMENT ON THE APPLICATION MAY VIEW THE APPLICATION AT THE WELD COUNTY CLERK AND RECORDERS OFFICE AT 1150 O ST., GREELEY COLORADO AND SHOULD SEND COMMENTS PRIOR TO THE END OF THE PUBLIC COMMENT PERIOD TO THE DIVISION OF RECLAMATION, MINING AND SAFETY,1313 SHERMAN ST , ROOM 215, DENVER, COLOr ADO, 80203 Z t 1.. ? rr P0571D g 17-13 Hello