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HomeMy WebLinkAbout20131465.tiffSITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW (USR) APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT # /AMOUNT # /$ CASE # ASSIGNED: APPLICATION RECEIVED BY PLANNER ASSIGNED: Parcel Number 0 8 0 5- 3 6- 0- 0 0- 0 0 9 (12 digit number - found on Tax I.D. information, obtainable at the Weld County Assessor's Office, or www.co.weld.co.us) Legal Description SW 1/4 of the SE 1/4 , Section 36 , Township 6 North, Range 66 West Zone District: R-1 , Total Acreage: 5.24 Airport Overlay District: N/A FEE OWNER(S) OF THE PROPERTY: Name: Richmark Energy Partners, LLC Work Phone # (970) 352-9446 Home Phone # Address: PO Box 328 Address: City/State/Zip Code Flood Plain: yes , Geological Hazard: N/A Email collln@mineralresourcesinc.com Greeley, CO 80632 Name: Work Phone # Home Phone # Email Address: Address: City/State/Zip Code Name: Work Phone # Home Phone # Email Address: Address: City/State/Zip Code APPLICANT OR AUTHORIZED AGENT (See Below: Authorization must accompany applications signed by Authorized Agent) Name: Lamp Rynearson & Associates, Inc Work Phone # (970) 226-0342 Home Phone # Address: 4715 Innovation Drive, Ste 100 Address. Email erin.mathews@LRA-inc.com City/State/Zip Code Fort Collins, Colorado 80525 PROPOSED USE: Multiple oil and gas well pad and associated production equipment. I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my (our)knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicating that the signatory has to legal authority to sign for the corporation. Signature: Owner or Authorized Agent Date Signature: Owner or Authorized Agent Date RICHMARK ENERGY PARTNERS, LLC Mail: P.O. Box 328 Greeley, Colorado 80632 * Phone: 970.352.9446 * Fax: 970.339.8321 December 4, 2012 Weld County Department of Planning Services 1555 North 17th Avenue, 2nd Floor Greeley, Colorado 80631 RE: Agent Authorization C Street Directional Project Weld County, Colorado Planning Staff: Richmark Energy Partners, LLC hereby authorizes Lamp, Rynearson and Associates, Inc. to act as the authorized agent for Richmark Energy Partners, LLC in processing the Use by Special Review application for the above referenced project. Enclosed is the Articles of Organization indicating me as a signatory for Richmark Energy Partners, LLC. If you have any questions, please contact me at (970) 352-9446. Sincerely, Richmark-Energy Partners, LLC Arlo Richardson Managing Partner enclosure Document Processing Fee If document is on paper: If document is filed electronically: Fees are subject to change. For electronic filing and to obtain copies of filed documents visit www.sos.state.co.us Deliver paper documents to: Colorado Secretary of State Business Division 1560 Broadway, Suite 200 Denver, CO 80202-5169 Paper documents must be typed or machine printed. -Filed $50.00 $ .99 Colorado Secretary of State Date and Time: 08/03/2004 04:32 PM Entity Id: 20041273185 Document number: 20041273185 ABOVE SPACE FOR OFFICE USE ONLY Articles of Organization filed pursuant to 7-90-301, et seq. and §7-80-204 of the Colorado Revised Statutes (C.R.S) I. Entity name: 2. Use of Restricted Words (if any of these terms are contained in an entity name, true name of an entity, trade name or trademark stated in this document, make the applicable selection): 3. Principal office street address: 4. Principal office mailing address (if different from above): Richmark Land Company, LLC (The name of a limited liability company must contain the term or abbreviation "limited liability company", "ltd. liability company", "limited liability co." "ltd. liability co.". "limited" "Ilc" "tic.", or "ltd" §7-90-60I, C.R.S.) ❑ "bank" or "trust" or any derivative thereof ❑ "credit union" ❑ "savings and loan" ❑ "insurance", "casualty", "mutual", or "surety" 3031 8th Avenu (Street name and number) Denver CO 80620 (City) (State) (Postal/Lip Code) United States (Province - if applicable) (Country - if not US) (Street name and number or Post Office Box information) (City) (State) (Postal/Zip Code) (Province - if applicable) (Country - ifnot US) 5. Registered agent name (if an individual): Richardson OR (if a business organization): Arlo (Last) (First) (Middle) (Suffix) 6. The person identified above as registered agent has consented to being so appointed. 7. Registered agent street address: 3031 8th Avenue (Street name and number) Evans CO 80620 Rev. 6/14/2004 I of 3 8. Registered agent mailing address (if different from above): 9. Name(s) and mailing address(es) of person(s) forming the limited liability company: (if an individual): OR (if a business organization): (if an individual) OR (if a business organization) (if an individual) OR (if a business organization) (City) (State) (Postal/Zip Code) (Street name and number or Post Office Box information) (City) (State) (Postal/Zip Code) (Province - if applicable) (Country- if not US) Richardson Arlo (Last) (First) (Middle) (Suffix) 3031 8th Avenue (Street name and number or Post Office Box information) Evans CO 80620 (City) Unifga)StateS (Postal/Zip Code) (Province - if applicable) (Country— if not US) (Last) (First) (Middle) (Suffix) (Street name and number or Post Office Box information) CO (City) Un($2a"state5 (Postal/Zip Code) (Province - if applicable) (Country —fnot US) (Last) (First) (Middle) (Suffix) (Street name and number or Post Office Box information) CO (City) unlSteO)StateS (Postal/Lip Code) (Province - if applicable) (Country- if not US) (If more than three persons are forming the limited liability company, mark this box U and include an attachment stating the true names and mailing addresses of all additional persons forming the limited liability company) Rev. 6/14/2004 2 of 3 10. The management of the limited liability company is vested in managers El OR is vested in the members O. 11. There is at least one member of the limited liability company. 12. (Optional) Delayed effective date: (mm/dd/yyyy) 13. Additional information may be included pursuant to other organic statutes such as title 12, C.R.S. If applicable, mark this box and include an attachment stating the additional information. Notice: Causing this document to be delivered to the secretary of state for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the secretary of state, whether or not such individual is named in the document as one who has caused it to be delivered. 14. Name(s) and address(es) of the individual(s) causing the document to be delivered for filing: Richardson Arlo 30318tff ktenue (First) (Middle) (Suffix) (Street name and number or Post Office Box information) Evans CO 80620 (City) urfilid8 states (P(istal/Zip Code) (Province - if applicable) (Country— if not US) (The document need not state the true name and address of more than one individual However, if you wish to state the name and address of any additional individuals causing the document to be delivered for filing, mark this box 7 and include an attachment stating the name and address of such individuals.) Disclaimer: This form, and any related instructions, are not intended to provide legal, business or tax advice, and are offered as a public service without representation or warranty. While this form is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form. Questions should be addressed to the user's attorney. Rev. 6/14/2004 3 of 3 Document processing fee If document is filed on paper If document is filed electronically Fees & forms/cover sheets are subject to change. To file electronically, access instructions for this form/cover sheet and other information or print copies of filed documents, visit www.sos.state.co.us and select Business Center. Paper documents must be typewritten or machine printed. E -Filed $125.00 $ 25.00 Colorado Secretary of State Date and Time: 06/30/2006 10:32 AM Id Number: 20041273185 Document number: 20061268718 ABOVE SPACE FOR OFFICE USE ONLY Articles of Amendment filed pursuant to §7-90-301, et seq. and §7-80-209 of the Colorado Revised Statutes (C.R.S.) ID number: 20041273185 1. Entity name: 2. New Entity name: (if applicable) 3. Use of Restricted Words (if any of these terms are contained in an entity name, true name of an entity, trade name or trademark stated in this document, mark the applicable box): 4. Other amendments, if any, are attached. 5. If the limited liability company's period of duration as amended is less than perpetual, state the date on which the period of duration expires: Richmark Land Company, LLC (If changing the name of the limited liability company, indicate name BEFORE the name change) Richmark Energy Partners, LLC ❑ "bank" or "trust" or any derivative thereof O "credit union" ❑ "savings and loan" ❑ "insurance", "casualty", "mutual", or "surety" (mm/ddlyyyy) OR If the limited liability company's period of duration as amended is perpetual, mark this box: 6. (Optional) Delayed effective date: Notice: (mm/dd/yyyy) Causing this document to be delivered to the secretary of state for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes, AMD LLC Page I of2 Rev. 11/15/2005 This perjury notice applies to each individual who causes this document to be delivered to the secretary of state, whether or not such individual is named in the document as one who has caused it to be delivered. 7. Name(s) and address(es) of the individual(s) causing the document to be delivered for filing: Richardson Collin (Last) (First) 3109 35th Ave B-101 Melbourne (Middle) (Suffix) (Street name and number or Post Office Box information) Greeley CO 80634 (City) (Stare Unite States (Postal/Zip Code) (Province - if applicable) (Country— if not US) (The document need not state the true name and address of more than one individual However. if you wish to state the name and address of any additional individuals causing the document to be delivered for filing, mark this box El and include an attachment stating the name and address of such individuals.) Disclaimer: This form, and any related instructions, are not intended to provide legal, business or tax advice, and are offered as a public service without representation or warranty. While this form is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form. Questions should be addressed to the user's attorney. AMD_LLC Page 2 of 2 Rev. 11/15/2005 USE BY SPECIAL REVIEW (USR) QUESTIONNAIRE C STREET DIRECTIONAL PROJECT WELD COUNTY, COLORADO On behalf of our client, Richmark Energy Partners, LLC, Lamp, Rynearson & Associates is filing a Use by Special Review application for the C Street Directional Project located at 2621 West C Street. The property is located approximately 1,800 feet west of the intersection of 23rd Avenue and C Street. The property is located on the north side of C Street, south of the Great Western Railway. Richmark Energy Partners has entered into an agreement with Mineral Resources, Inc. allowing Mineral Resources to utilize the surface of the property to conduct drilling operations and to install and operate related oil and gas production facilities. A copy of this agreement can be provided upon request. The proposed C Street Directional Project has been evaluated in accordance with the Weld County's Use by Special Review procedural guide. The following questions are to be answered and submitted as part of the USR application. If a question does not pertain to your use, please respond with "not applicable", with an explanation as to why the question is not applicable. 1. Explain, in detail, the proposed use of the property. The proposed use is a multiple well, oil and gas well pad located in the northwest corner of the property. The well pad will include up to 32 wells that will be directionally and/or horizontally drilled, 16 oil tanks, 2 water tanks, 10 separators, and an access road from C Street. Drilling of the wells will be completed in multiple phases. Mineral Resources has obtained a setback waiver from the neighboring property to the east owned by Alejandro and Charlene Chumacero. The waiver reduces the required Colorado Oil and Gas Conservation Commission (COGCC) high density setback, per COGCC Rules 603.e.(2) and 603.e.(3), from 350 feet to 200 feet. A copy of this agreement can be provided upon request. Mineral Resources has also obtained a property line setback waiver from the neighboring property to the west owned by the Greeley Broadcasting Company. The waiver waives the 150 -foot property line setback requirement for wellheads per COGCC Rule 603.a.(2). A copy of this agreement can be provided upon request. The proposed project provides an efficient manner for multiple oil and gas resources to be extracted from one location. Rather than disturbing multiple sites to drill individual wells, the C Street Directional Project minimizes the amount of surface disturbance through the use of directional and horizontal drilling. The project also utilizes an area that is currently undeveloped without affecting development in the surrounding neighborhood. The existing residence and outbuildings on the property will remain. The proposed location has been submitted and approved by the COGCC. A copy of the approved Oil and Gas Location Assessment, Form 2A, is included with this application. 2. Explain how this proposal is consistent with the intent of the Weld County Code, Chapter 22 of the Comprehensive Plan. The C Street Directional Project is consistent with Section 22-5-90, Oil and Gas Deposits, and Section 22-5-100, Oil and Gas Goals and Policies, of Chapter 22 of the Weld County Code. Section 22-5-90, Oil and Gas Deposits: The proposed operation meets the intent of both Sections A and B. Section A states that oil and gas development is an integral part of the County economy and Section B states that in addition to in -state use, oil and gas resources are important exports for Colorado and lessen the country's Lamp, Rynearson & Associates, Inc. Page 1 Project No. 0210012.00 dependence on foreign supplies. This proposed use directly aligns with both sections as this project will support the County's oil and gas industry and promote local oil and gas exploration ultimately reducing the need for foreign import. Section 22-5-100, Oil and Gas Goals and Policies: The proposed operation meets the intent of Sections A through C as shown below. • The proposed project promotes the reasonable and orderly exploration and development of oil and gas mineral resources through coordinated communication between the surface owner and the mineral owners (OG Goal 1). • The proposed project promotes the use of directional drilling to protect surface rights of agricultural lands and possible future land uses (OG Goal 2). • The proposed project encourages the clustering of oil and gas well sites through use of directional drilling (OG Goal 2). • The proposed project encourages the use of minimal drill window areas through use of directional drilling (OG Goal 2). • The proposed project will be designed to prevent surface and groundwater contamination by providing secondary containment around tanks (OG Goal 3). • All oil and gas wells drilled will follow COGCC regulations pertaining to well cementing to prevent commingling of water, oil, and gas into other formations (OG Goal 3). 3. Explain how this proposal is consistent with the intent of the Weld County Code, Chapter 23 (Zoning) and the zone district in which it is located. Section 23-2-200, Intent and Applicability: The proposed site is zoned Low Density Residential (R-1) and, per Weld County Code, oil and gas production, storage, support and service facilities are permitted when approved by the Use by Special Review process. Section 23.2-240-A, Design Standards: The proposed operation meets the intent of Section A as shown below. Section B is not applicable. A. An applicant for a Use by Special Review shall demonstrate compliance with the following design standards in the application and shall continue to meet these standards if approved for development. 1. Adequate Water Service: The proposed well pad will not require water service. No changes or improvements are proposed to the existing residence on the property; therefore, no changes to the existing water service are required. 2. Adequate Sewer Service: The proposed site will not require sewer service. During construction of the pad and drilling of the wells, portable sanitary facilities will be provided per COGCC Rule 602.f. No changes or improvements are proposed to the existing residence on the property. A copy of the Statement of Existing Septic Permit, completed in 2006, is included with this submittal. 3. Soil Conditions: The on -site soils are sandy in nature and do not present any limitations to the construction of the project. 4. Adequate Fire Protection: The site is currently located within the Western Hills Fire Protection Area. In addition, Mineral Resources has an Emergency Response and Fire Protection Plan. A copy of which is included with this submittal. Lamp, Rynearson & Associates, Inc. Page 2 Project No. 0210012.00 5. Stormwater Management Standards: To accommodate the proposed use, the property will be regraded in some areas. The proposed grading will maintain the existing drainageway that crosses through the property. No on -site detention will be provided. 6. Parking: No off-street parking will be necessary for this project. 7. Setbacks and Offsets: The proposed project complies with the setback and offset requirements as defined by the Bulk Requirements for R-1, R-2, R-3, and R-5 Zone Districts. 8. Access: The access point has been designed to accommodate large trucks entering the site. The access point's location supports ingress and egress, while providing visibility to the traveling public approaching from the west and east. Since the use does not generate a large volume of traffic or a large number of slow accelerating vehicles, acceleration and deceleration lanes will not be needed. 9. Access Construction: The access has been designed to accommodate large trucks entering and exiting the site. It is our understanding that C Street is actually within the jurisdiction of the City of Greeley and therefore the access will be built per the City's specifications. 10. Buffering and Screening: To provide visual and noise buffering from the residences to the south, Mineral Resources will install evergreen trees along the south property line. Evergreen species shall include Austrian Pine and Colorado Spruce, 6 feet tall in size at the time of installation. 11. Agricultural Soils: Not applicable as the property is not in the A (Agricultural) Zone District. Section 23-2-250, Operation Standards: The proposed operation meets the intent of Section 23-2-250 as shown below. An applicant for a Special Review Permit shall demonstrate conformance with the following operation standards in the Special Review Permit application to the extent that the standards affect location, layout and design of the Use by Special Review prior to construction and operation. Once operational, the operation of the uses permitted shall conform to these standards. A. Noise: To mitigate noise levels during drilling, Mineral Resources will conform to COGCC Rule 802, Noise Abatement. The maximum permissible noise levels for the Residential/Agricultural/ Rural zone are as follows: 7:00 a.m. to the next 7:00 p.m. = 55 db(A) 7:00 p.m. to the next 7:00 a.m. = 50 db(A) To the maximum extent possible, exhaust from all engines, motors, coolers, and other mechanized equipment shall be vented away from all occupied buildings. B. Air Quality: Mineral Resources will comply with all COGCC regulations pertaining to air quality and therefore those of the Colorado Air Quality Control Act, 25-7-101, C.R.S. If necessary, Mineral Resources will file an Air Pollution Emissions Notice (APEN) with the Colorado Department of Public Health and Environment (CDPHE) if production volumes exceed the required thresholds. C. Water Quality: The COGCC sets forth specific requirements for casing depth to protect groundwater. Mineral Resources will set surface casing per Rule 317A to protect the Fox Hills aquifer transition zone. In addition, the operations will comply with the water quality regulations promulgated by the Colorado Water Quality Control Act. Mineral Resources maintains a field wide permit for stormwater discharges associated with construction activities with the CDPHE, Certification Lamp, Rynearson & Associates, Inc. Page 3 Project No. 0210012.00 Number COR03H509. Part of this permit includes the Stormwater Management Plan, which addresses all BMPs that will be utilized on -site to control stormwater discharge. The Stormwater Management Plan will be maintained by Mineral Resources until final stabilization is achieved and will be kept in their office. D. Lighting Standards: During drilling, lighting will be utilized on -site to facilitate a twenty-four hour drilling schedule. The lighting will be directed away from residential areas and shielded to prevent glare onto C Street and the surrounding residences. Upon completion of drilling, permanent lighting will be installed on -site for safety and to reduce the likelihood of trespassers. F. Heat: There are no large heat sources from the normal operations of the well pad. F. Landscape Maintenance: Maintenance of the natural grasses will be completed as needed to prevent growth taller than 12 -inches. A noxious weed management plan has been provided on the landscape plan. Mineral Resources will provide temporary irrigation until the native grasses and trees become established. G. Improvements Agreement: Since there are no public improvements proposed as part of this project, an off -site improvements agreement is not anticipated. 4. What type of uses surround the site (explain how the proposed use is consistent and compatible with surrounding land uses). • The 8.8 -acre parcel to the west is within Weld County and is zoned low density residential (R-1). Current use of the property is a radio tower for the Greeley Broadcasting Company. • The 0.25 -acre parcel to the east is within Weld County and is zoned low density residential (R-1). Currently the parcel is used as a residential property. The principal residence is located approximately 300 feet from the pad site. The 1.4 -acre parcel to the east is within Weld County and is zoned low density residential (R-1). Currently the parcel is used as a residential property. The principal residence is located approximately 400 feet from the pad site. • The parcel is bound on the south by C Street. The 55 -acre parcel south of C Street is within the City of Greeley and is zoned Residential Mobile Home (RMH). Currently the parcel is used as a mobile home park, with the closest mobile home located 400 feet from the pad site. • The parcel is bound on the north by the Great Western Railway. The 16.5 -acre parcel north of the Great Western Railway is within the City of Greeley and is zoned industrial medium (I -M). Currently the parcel is vacant. The proposed use is compatible with the surrounding uses as the property is surrounded on the north and west by relatively vacant property. The well pad will be located in the northwest corner of the property, thereby minimizing the impact to the residential parcels to the south and east to the greatest extent possible. 5. Describe, in detail, the following: a. Number of people who will use this site During drilling and completion of the wells, Mineral Resources will contract with various companies to provide drilling, hydraulic fracturing, and general construction services. Upon completion of the wells, a Mineral Resources employee will monitor the wells daily. Mineral Resources will contract with a water pumper and oil gatherer to collect the produced water and oil. b. Number of employees proposed to be employed at this site Lamp, Rynearson & Associates, Inc. Page 4 Project No. 0210012.00 As stated above, Mineral Resources will contract with various service providers to drill, complete, and construct the wells and well pad. Once construction is complete, the wells will be monitored daily by a Mineral Resources employee. The site itself will not have any employees. c. Hours of operation During drilling of the wells, a 24 -hour, 7 days a week schedule will be adhered to. Once drilling and construction of the well pad is complete, the site will be in operation 24 hours a day, 365 days a year, as long as the wells continue producing. d. Type and number of structures to be erected (built) on this site The proposed well pad will consist of up to 32 directionally or horizontally drilled wells and the following production equipment: • 16 oil tanks to store produced oil, 500 bbl capacity, welded steel • 2 water tanks to store produced water, 500 bbl capacity, fiberglass • 10 separators to separate production fluid into their constituent components of oil, gas, and water • Meter houses to meter produced gas • Vapor Recovery Unit (VRU) to compress natural gas emitted off the oil • Flare to eliminate excess gas that cannot be recovered by the VRU • Compression Per COGCC regulations, secondary containment will be constructed around the tanks. A galvanized metal containment ring, 30 to 44 inches in height, will be utilized around the tanks in conjunction with a top mount geomembrane liner. Equipment will be fenced as required by the COGCC. Drilling of the wells will be completed in multiple phases and therefore the construction of the production equipment may also be completed in phases. The existing residence and outbuildings will remain. e. Type and number of animals, if any, to be on this site No animals will be kept on -site. f. Kind of vehicles (type, size, weight) that will access this site and how often During drilling of the wells traffic at the site will increase. However, once drilling is complete, the site will only be accessed for general maintenance and inspection purposes and for oil and water pickups. Ultimately, the amount of traffic to the site will depend on the production of the wells but it can be assumed that over time, traffic to the site will decrease as the production of the wells decreases. The anticipated traffic to the site includes one pickup truck per day for monitoring, an oil tanker truck up to five times per day to collect oil, and a water tanker truck once every three days to collect produced water. Trucks types will include semi -trucks with 130 bbl tankers with a max weight of 80,000 pounds. All associated traffic will access the site from C Street. g. Who will provide fire protection to the site The site is located within the Western Hills Fire Protection Area. In addition, Mineral Resources has an Emergency Response and Fire Protection Plan. A copy of which is included with this submittal. h. Water source on the property (both domestic and irrigation) Lamp, Rynearson & Associates, Inc. Page 5 Project No. 0210012.00 J. The proposed well pad will not require water service. No changes or improvements are proposed to the existing residence on the property; therefore, no changes to the existing water service are required. i. Sewage disposal system on the property (existing and proposed) The proposed site will not require sewer service. During construction of the pad and drilling of the wells, portable sanitary facilities will be provided per COGCC Rule 602.f. No changes or improvements are proposed to the existing residence on the property. A copy of the Statement of Existing Septic Permit, completed in 2006, is included with this submittal. If storage or warehousing is proposed, what type of items will be stored No warehousing is proposed; however, storage of produced oil and water will be contained in the tank farm prior to pick up. 6. Explain the proposed landscaping for the site. The landscaping shall be separately submitted as a landscape plan map as part of the application submittal. Proposed landscaping for the site is expected to be minimal to match the surrounding area and will consist of seeding disturbed areas with a native dry land seed mix. To provide visual and noise buffering from the residences to south, evergreen trees will be installed along the south property line. Evergreen species shall include Austrian Pine and Colorado Spruce, 6 feet tall in size at the time of installation. The applicant is also exploring alternative landscaping designs for this site, including xeriscaping. 7. Explain any proposed reclamation procedures when termination of the Use by Special Review activity occurs. Termination of the Use by Special Review activity is not expected. However, reclamation of the site will be completed per the COGCC Rules and Regulations, Rule 1000, for reclamation. In addition, financial assurance has been posted with the COGCC to guarantee final reclamation of the site is completed. 8. Explain how the stormwater drainage will be handled on the site. The site will be re -graded to create a suitable pad to conduct oil and gas drilling operations as well as to maintain historic drainage patterns. Currently, the property has a high point running across the site from the northeast to the southwest. Generally, stormwater either sheet flows to the northwest and is collected within a swale within the railroad right-of-way or sheet flows to the southeast and is collected within an existing drainageway and carried to the railroad right-of-way. The property will be graded to create a pad with minimum cross slope to conduct drilling operations and for placement of the production equipment. Stormwater will sheet flow along the toe of the well pad, maintaining historic drainage patterns. Per the Colorado Oil and Gas Conservation Commission (COGCC), containment devices shall be constructed around crude oil, condensate, and produced water storage tanks and shall enclose an area sufficient to contain 150% of the largest single tank. On this site a steel containment berm will be utilized around the tank farm to meet the secondary containment requirements. As a result of this secondary containment device, all stormwater that falls within the limits of the proposed tank farm will be retained within the containment berm. All retained stormwater will be pumped into one of the on -site produced water tanks and hauled off -site for disposal. The on -site separators will be placed above ground on skids. Therefore, all stormwater that falls on or between the separators will be allowed to infiltrate back into the ground or sheet flow across the surface following natural drainage patterns. Lamp, Rynearson & Associates, Inc. Page 6 Project No. 0210012.00 The access road will be graded to provide drainage from the road surface and to allow for cross drainage of low points as needed. Since the road will be constructed of aggregate material, the access road will be pervious allowing for stormwater infiltration. An 18 -inch culvert will be provided under the access road to allow natural drainage patterns to be maintained. Once constructed, the proposed well pad and access road will occupy less than 3 acres. Due to the nature of the project, all stormwater that falls within the facility will either be contained within the secondary containment system or allowed to follow the natural drainage patterns. No detention system will be provided. 9. Explain how long it will take to construct this site and when construction and landscaping is scheduled to begin. Under normal drilling conditions, it is anticipated that drilling will take 12-16 days per well. It is anticipated that drilling will begin in the Summer of 2013. The drilling of the wells will be completed in phases. In compliance with the COGCC Rules and Regulations, the well pad will undergo interim reclamation. All debris and waste materials will be removed and all exploration and production waste will be removed and handled per COGCC Rule 900. All areas compacted by drilling and subsequent oil and gas operations shall be cross -ripped. Drilling pits, if used, shall be closed in accordance with COGCC Rule 1003.d. Once all wells have been completed and construction is finalized, all disturbed areas, other than those needed for operation of the oil and gas wells, will be restored and revegetated as soon as practical. Evergreen trees will be installed along the south property line at this time. 10. Explain where storage and/or stockpile of wastes will occur on this site. Storage and/or stockpiling of wastes are not expected on -site. During construction of the pad, solid waste generated by the site will be collected and disposed of by a contracted waste disposal company. Disposal will follow the rules and regulations as defined by the CDPHE. Lamp, Rynearson & Associates, Inc. Page 7 Project No. 0210012.00 C STREET DIRECTIONAL PROJECT USE BY SPECIAL REVIEW WASTE HANDLING PLAN In conjunction with filing an Oil and Gas Location Assessment (Form 2A) with the Colorado Oil and Gas Conservation Commission (COGCC), operators must submit a Waste Management Plan meeting the general requirements of Rule 907.a of the COGCC Rules and Regulations. A copy of Mineral Resources Waste Management Plan for the C Street Directional Project is included below. Exploration and Production Waste Handling Operations The following outlines the typical procedures that Mineral Resources will use to handle and dispose of exploration and production (E&P) waste. Drilling Fluids • Water based bentonitic drilling fluids and associated drill cuttings will be disposed of through land application at a COGCC approved mud farm. Mud Farm: Location to be determined by transporter Petroleum Contaminated Waste • Petroleum contaminated soils will be disposed of at either a COGCC approved land farm or a commercial solid waste disposal facility. • Tank bottoms will be disposed of at either a COGCC approved land farm or a commercial solid waste disposal facility. Land farm: Location to be determined by transporter Solid Waste Disposal Facility: Waste Management - North Weld Landfill 40000 WCR 25 Ault, CO 80610 Waste Management- Buffalo Ridge Landfill 11655 WCR 59 Keenesburg, CO 80643 Produced Water • Flowback fluids recovered after hydraulic fracturing is complete are temporarily stored in on -site tanks. When necessary, the tanks will be pumped and the fluids will be trucked off -site to a Class II Injection Facility. • Produced water is stored on -site in 100-150 bbl fiberglass tanks located within the tank battery. Produced water will be collected and trucked off -site to a Class II Injection Facility at an appropriate interval determined by production. Lamp, Rynearson & Associates, Inc. C Street Directional Project, Waste Handling Plan January 3, 2013 Project Na 0210012.00 Page 1 Class II Injection Facility: High Sierra Water Services, LLC. C1 -Kersey 25849 WCR 46 Kersey, CO 80644 C2 -Brighton 1191 WCR 19 Brighton, CO 80601 C3 -LaSalle 19094 WCR 40 La Salle, CO 80645 C4 -Greeley 22625 WCR 64 Greeley, CO 80631 C6 -Platteville 13159 WCR 39 Platteville, CO 80651 C7 -Cornish 35857 WCR 74 Briggsdale, CO 80611 Transportation • All E&P wastes will be trucked off -site. Truck transport frequency will vary depending on the site and the volume of waste produced. • Fluids and produced water will be hauled in tanker or vacuum trucks and cuttings will be hauled in dump trucks. Transporter: Integrity Trucking 23466 WCR 55 Kersey, CO 80644 (970) 356-4487 Solid Waste Solid waste generated by the proposed site use will be collected and disposed of by a contracted waste disposal company. Lamp, Rynearson & Associates, Inc. C Street Directional Project, Waste Handling Plan January 3, 2013 Project Na 0210012.00 Page 2 C STREET DIRECTIONAL PROJECT USE BY SPECIAL REVIEW DUST ABATEMENT PLAN During construction and through the life of this project, Mineral Resources will utilize watering and other best management dust suppression practices to control fugitive dust. Mineral Resources will utilize water trucks as needed to control dust. The access road will be constructed with road base to reduce dust emissions. Vehicle speeds will be limited to ten miles per hour to reduce dust. Revegetation of the disturbed area shall be completed within one year. To prevent dust emissions, disturbed soil shall be furrowed a minimum of six inches deep at right angles to prevailing winds. If needed, silt fence shall be installed as a wind break. A stormwater management plan will be implemented during construction to mitigate soil erosion through the use of structural and nonstructural sediment and erosion control devices and best management practices. Lamp, Rynearson & Associates. Inc. C Street Directional Project, Dust Abatement Plan January 3. 2013 Project No. 0210012.00 Page 1 Emergency Response & Fire Protection Plan C Street Directional Drilling Project Mineral Resources, Inc. Mineral Resources, Inc (MRI) operations are designed to comply with the following sections of the 1994 Edition of the Uniform Fire Code, Drilling Operation: Section 7904.3 Well drilling and operating Section 7904.3.1 General Section 7904.3.2 Location Section 7904.3.2.1 Storage Tanks Section 7904.3.2.2 Streets & Railways Section 7904.3.2.3 Buildings Section 7904.3.3 Waste Control Section 7904.3.4 Sumps Section 7904.3.5 Prevention of Blowouts Section 7904.3.6 Storage tanks and sources of ignition Section 7904.3.7 Soundproofing Section 7904.3.8 Signs Section 7904.3.9 Field loading racks All roads leading to and those in the drilling/storage area will be designated and maintained to support fire apparatus. In addition to the above -referenced rules and regulations, MRI is also subject to COGCC Rule 606A pertaining to Fire Prevention and Protection. MRI has support personnel in the field or on call at all times to provide technical assistance in fire prevention and elimination. Emergency 24 -hour phone numbers will be prominently posted on site. A. General Information The purpose of the Emergency Response Plan is to provide procedures to cover emergency conditions which may arise during the development of oil and gas resources. The procedures contain the policies applicable to facility emergencies. The following information can be vital during emergencies. It may be used by outside agencies, as well as company employees and contract labor, to help secure a speedy recovery from an emergency situation: 1. Name and Address: Mineral Resources, Inc. P.O. Box 328 Greeley, CO 80632 5200 West 20`x' Street Greeley, CO 80634 Office Number (24 hours): (970) 352-9446 Site Manager: Collin Richardson 2. Type of Facility: Oil and gas wells/multiple wells from single pad site 3. Location: Located in the southwest quarter of the southeast quarter of Section 36, Township 6 North, Range 66 West of the 6th PM , Weld County, Colorado. More specifically, 2621 West C Street. 4. The location accessed as follows: Access to Wells: From the intersection of 35th Avenue and C Street, travel east on C Street to the C Street Directional Project access road on the north side of the street. The fenced facility may be entered via an automatic gate equipped with a KNOX box. Sips will be posted in conformance with the regulations of the COGCC. Access to tank battery: From the intersection of 35th Avenue and C Street, travel east on C Street to the C Street Directional Project access road on the north side of the street. The fenced facility may be entered via an automatic gate equipped with a KNOX box. Signs will be posted in conformance with the regulations of the COGCC. 5. Property Owner: Richmark Energy Partners, LLC P.O. Box 328 Greeley, CO 80632 Attn: Arlo Richardson 6. Owner and Operator: Mineral Resources, Inc. P.O. Box 328 Greeley, CO 80632 Attn: Collin Richardson 7. Tank and Piping Inspections: All tanks and piping are visually inspected on a regular basis for leakage, malfunction of seals etc. Inspections are made by MRI personnel on all storage tanks and properly noted. All storage tank material and construction comply with API specifications for hydrocarbon storage. 8. Drainage: Berm Area: Drainage from bermed area is controlled by MRI personnel. All fluids inside burned areas will be moved by tank truck to a permitted disposal facility for proper disposal. 9. Spill Containment: Berms: Tank berms will be of steel construction and enclose an area with sufficient volume to contain 150% of the entire contents of the largest tank in the enclosure. The steel berm will be lined with a geomembrane liner. 10. Entrance/Exit Driveways: The entrance/exit gate is located on the south end of the pad site. Access to Wells: From the intersection of 35th Avenue and C Street, travel east on C Street to the C Street Directional Project access road on the north side of the street. The fenced facility may be entered via an automatic gate equipped with a KNOX box. Signs will be posted in conformance with the regulations of the COGCC. Access to tank battery: From the intersection of 35th Avenue and C Street, travel east on C Street to the C Street Directional Project access road on the north side of the street. The fenced facility may be entered via an automatic gate equipped with a KNOX box. Signs will be posted in conformance with the regulations of the COGCC. All roads within the site area are approximately 20 feet in width and constructed of an aggregate base course surface, a minimum of six (6) inches thick which meets the requirements for Class 6 Aggregate Base Course as specified by CDOT. No turnaround is required for the proposed tank battery. All tanker trucks and any emergency equipment travel a one-way road all the way around the well- site(s). 11. Security: All proper warning signs and equipment guards will be installed where necessary. All equipment will be fenced as required by the COGCC 600 Series Rules. B. Training• MRI personnel are properly instructed in the operation and maintenance of equipment to prevent oil discharges and applicable pollution control laws, rules, and regulations. C. Emergency Organization Contact List: The following is a list of MRI personnel and emergency organizations that may be contacted in the event an emergency occurs at the wellhead or the tank battery. I. NIRI: The Site Manager or his representative in charge is responsible for an emergency at the well location at all times: Collin Richardson, 24 -hour phone, (970) 352-9446 or (970) 590-7523 All facility emergencies are reported immediately to the appropriate person by the dispatcher or answering service both of which can be reached 24 hours at (970) 352-9446. 2. City and County Agencies: Greeley Fire Department Station #3 911 or (970) 352-2900 Greeley Fire Department Station #2 911 or(970)330-1771 Greeley Police Department 911 or (970) 350-9600 All Emergencies Call 911 Weld County Sheriffs Office (970) 356-4000 3. State Agencies: Colorado Oil and Gas Conservation Commission (COGCC) (303) 894-2100 Colorado Dept. of Public Heath and Environment (303) 692-2000 4. Federal Agencies: Emergency Fires or spills that cannot be contained by employees Fires or spills that cannot be contained by employees Fires or spills not contained within the facility Contact as emergencies dictate Discharges to surface water only Environmental Protection Agency — Region VIII (303)293-1788 (800) 227-8914 (24 -hour number) 5. Emergency Response Contractors Vacuum Truck Service Terry's Well Service Backhoe Service Mineral Resources Amen Oilfield Services Spill Cleanup Services Mineral Resources Amen Oilfield Services D. Emergency Response Procedures (970) 539-0614 (970) 352-9446 (970) 539-9313 (970) 352-9446 (970) 539-9313 The Site Manager has responsibility for implementing the Emergency Response Plan. The implementation of the plan will depend on the type of emergency. The Emergency Response Plan for a wellhead or tank battery emergency shall be as follows: 1. Immediately after a facility emergency has been reported to the Site Manager, he will investigate the location to determine the extent of the emergency and potential hazard to the public. 2. If necessary, rescue injured and render first aid. 3. Evacuate the area of all non -company personnel. 4. Follow MRI Spill/Emergency Reporting Guidelines. 5. Close all load and fill lines on storage tanks. 6. Place all electrical breakers in the off position. 7. Obtain whatever assistance is needed from local Police/Sheriff Department The Site Manager will notify the local MRI Management of any emergency which might result in news media coverage. Required notifications and reports to State and Federal auencies shall be handled as applicable by MRI. E. Contingency Procedures/SPCC Plans: A spill Prevention Control and Countermeasure (SPCC) Plan is maintained and kept on - site. This plan should be referred to if a major product spill occurs. F. Release of Information: Release of information is the responsibility of Collin Richardson Phone: (970) 590-7523 From: fdn K. Mathews To: Tiffan Johnson Subject: FW: T-53 Drawings Date: Thursday, May 16, 2013 2:11:34 PM Attachments: T53 - 50K BBL TANK OPT -2 -Model RFV1,2dj Tiffane, Please see email below from Collin Richardson from Mineral Resources. Attached is some additional information pertaining to the above ground water storage tank. Thanks, Erin Erin Mathews, PE Project Engineer LAMP, RYNEARSON & ASSOCIATES, INC. 4715 Innovation Drive Fort Collins, Colorado 80525 Phone (970) 226-0342 Fax (970) 226-0879 Email Frin.MathPwsPI RA-INC corn Website www.l RA-inc.rom From: Collin M. Richardson[mailto:collin@mineralresourcesinc.com] Sent: Thursday, May 16, 2013 2:09 PM To: Erin K. Mathews Subject: FW: T-53 Drawings Here are the drawing for the tank. We feel like this is the best engineered system available right now. Resource West has not experienced any tank failures to date. In addition to using a well -engineered system, we will use a fabric reinforced 36 mil polyethylene liner to prevent zippering should the integrity of the liner be compromised. The site prep will receive special attention to ensure that the tank is assembled on solid footing. From: JR Dalandsheer [tnailto:ir(&resourcewestnet] Sent: Thursday, October 11, 2012 3:26 PM To: Derek.GlnasnnaGreelevaov.corn Cc: Collin M. Richardson; Derek Gingerich Subject: T-53 Drawings Derek, Here is the drawings for the T-53 Commander Series Tank, please fill free to contact me with any questions you may have. When we have the tank up and operational, I would like to invite you to come to location and give us any feedback you may have. Thank You, Jr Delandsheer Project Manager •■ RESOURCE M■ WEST 326 Main ST Suite230 Grand Junction, CO 81501/USA C: 970-712-3423 O: 970-245-7104 F: 970-241-9943 Email jreresourcewest.net Web www.resourcewest.net COMMAN f.,; LLOPOI op oco <3 8 May 15, 2013 Ms. Tiffane Johnson Planner Weld County Department of Planning Services 1555 North 17th Avenue Greeley, Colorado 80631 RE: Traffic Memorandum C Street Directional Project, USR 13-0009 Weld County, Colorado LRA Project No. 0210012.00 Dear Ms. Johnson: LAMP RYNEARSON & ASSOCIATES ENGINEERS I SURVEYORS I PLANNERS 4715 Innovation Drive, Suite 100 Fort Collins, Colorado 80525 [P] 970 226 0342 [F] 970.226 0879 www. LRA-Inc. corn As requested by the City of Greeley, Lamp, Rynearson and Associates (LRA) is providing a memorandum detailing the temporary construction traffic and full build out traffic that will be associated with the proposed oil and gas directional drilling project located at 2621 West C Street known as the C Street Directional project. Due to the uncommon use of the proposed project, the ITE Trip Generation Manual was not used to estimate trips as no data collected was applicable to a multiple well oil and gas operation. The anticipated traffic to the proposed site was determined by the operator, Mineral Resources, based on their knowledge and observations of other similar sites they operate in Greeley and surrounding areas. The proposed use is to drill up to 32 oil and gas wells from the property, however drilling of the wells will be completed in phases. It is anticipated that the first phase of drilling will include two horizontal wells. Ultimately, the traffic impacts resulting from the proposed use can be categorized into three phases: drilling, completion, and production. All traffic associated with the proposed use will access the site from the proposed access point along C Street, located approximately 3,490 feet east of the intersection of 35th Avenue and C Street. It is anticipated that traffic will make a left turn from 35th Avenue onto C Street and enter the site. Upon exiting the site, it can be assumed that trucks will travel back to 35th Avenue and head north towards O Street. Due to the railroad crossing at the intersection of C Street and 23r l Avenue it is assumed that trucks will not use this intersection. Drilling Phase Upon completion of site grading, the drill rig will be moved on -site and rigged up in preparation to drill. It is anticipated that the rig will be moved on site from C Street using Leaving a Legacy of Enduring Improvements to Our Communities - PURPOSE STATEMENT ENGINEERS SURVEYORS PLANNERS Traffic Memorandum, C Street Directional Project USR 13-0009 May 15, 2013 Page 2 of 3 the proposed access. On average, a horizontal well takes 12 to 16 days to drill and will utilize a 24 hour drilling schedule. It is estimated that there will be approximately 20 employees working on -site per 12 hour shift, therefore during the drilling phase there will be 80 trips, 40 trips entering the site and 40 trips exiting the site, per day. It is assumed that the 12 hours shifts will run from 7 to 7, however the shifts times will ultimately be decided by the company performing the drilling. Therefore, the 40 trips during the morning shift change and the 40 trips during the evening shift change could be considered peak hour trips. Employees will be using personal vehicles to access the site. In addition to employee traffic, it is estimated that there will be an additional 2 to 3 semi trailer or tanker trucks entering and exiting the site per day for material deliveries, fresh water transport and drilling fluid and cuttings transport. These trips will be dispersed throughout the day and will not be concentrated at one time. Completion Phase Completion operations of the wells will begin once the phase one drilling program is complete. The completion process includes perforating the steel casing of the wellbore and then hydraulically fracturing the target formation. The completion process requires that multiple, high pressure, truck mounted pumps and other miscellaneous portable equipment, including storage tanks for water, fracturing fluids, and propping agents, be brought on site. The setup phase of the completion process is estimated to take 3 days and will include 40 to 50 semi trailer trips to the site. After fracturing is complete, all associated equipment will be moved offsite. To finish the completion phase, the completed wells will be flowed back. This process is anticipated to last 5 to 7 days. It is estimated that 5 to 8 tanker trucks will make trips to and from the site per day to collect and dispose of flowback fluids. Production Phase Traffic associated with the production phase of the project, ultimately depends on the production of the wells but it can be assumed that over time, traffic to the site will decrease as the production of the wells decreases. The anticipated traffic to the site is as follows: • One (1) pickup truck per day for daily monitoring • An oil tanker truck up to five (5) times per day to collect oil • A water tanker truck once every three (3) days to dispose of produced water Based on this breakdown, it can be assumed that the maximum trips to the site on an average day will be 10 trips, 5 trips entering the site and 5 trips exiting the site. It can also be assumed that the 10 trips to the site will not occur at the exact same time, but rather will be spread throughout the typical work day. Trucks types will include semi -trucks with 130 bbl tankers with a max weight of 80,000 pounds. In conclusion, the traffic associated with the construction and completion phases of the project are temporary, in that the associated traffic will only occur during the drilling and completion phases of the project. It is anticipated that 2 wells will be drilled initially. Therefore the construction phase of this project will last approximately four weeks and the Traffic Memorandum, C Street Directional Project USR 13-0009 May 15, 2013 Page 3 of 3 completion phase approximately 2 weeks. The traffic associated with the production phase of this project can be considered the full build out traffic anticipated from the proposed project The 10 trips per day generated during the production phase of the proposed project are not a significant impact to the surrounding traffic and are well below the City of Greeleys Traffic Impact Studies (TIS) requirement of 50 or more build -out peak hour trips on an arterial or major collector, or 100 or more on a minor collector or local street. Please contact us if you require any further information. Sincerely, LAMP RYNEARSON d ASSOCIATES,, Erin K. Mathews, PE Project Engineer RESPONSES TO PROJECT REFERRAL COMMENTS Project: C Street Directional Project, USR 13-009 Referral By: Mary Evett, Weld County Environmental Health Date of Referral: March 20, 2013 Responses By: Erin Mathews, PE Date of Responses: May 13, 2013 LRA Project No.: 0210012.00 ODL04 LAMP RYNEARSON & ASSOCIATES ENGINEERS I SURVEYORS I PLANNERS 4715 Innovation Drive, Suite 100 Fort Collins, Colorado 80525 PT 970.226.0342 [Fl 970.226.0879 www.LRA-Incmm The following responses generally follow the format of the comments received from Weld County. • The property owner, Richmark Energy Partners, will have the existing absorption bed located by a septic professional. Once the location and size is determined it will be added to the USR Plot Plan. Environmental Health also noted that there is an existing illegal greywater discharge line. Richmark Energy Partners will locate the illegal discharge and have it connected to the existing septic system. Once completed, documentation will be provided to the county. • The existing residence will continue to be served by the existing water tap from the City of Greeley. • For drilling and completion of the proposed wells, Mineral Resources, Inc. (MRI) has acquired Colorado Big Thompson (CBT) water. MRI will access the acquired water through the City of Greeley's water system. MRI will utilize a temporary waterline from the proposed project location to the existing fire hydrant located northeast of the intersection of C Street and North 28th Avenue Court. The temporary waterline will be located within the C Street right-of-way from the existing hydrant to the subject property. The temporary waterline will then be brought onto the property, routed to the north around the existing residence, and connected to the proposed temporary above ground water storage tank. Refer to the included Conceptual Hydraulic Fracturing Layout and Temporary Waterline Exhibit provided with this submittal for more information. Based on previous Mineral Resources projects within the Greeley area, the hydraulic fracturing job is anticipated to have a demand of 2,287,000 gallons per well. It is our understanding that the meter used in conjunction with the hydrant will allow a flow rate of 300 gallons per minute. A water demand analysis can be completed for this specific project if requested. • Secondary containment will be provided around the proposed tank battery in accordance with the requirements of the Colorado Oil and Gas Conservation Commission. MRI intends to use a secondary containment system manufactured by Falcon Technologies. The Falcon Liner system includes a custom built steel containment ring that is constructed to meet the necessary storage volume requirements. The containment ring is then sealed using a spray -on modified polymer system that creates a seamless and puncture resistant liner. A copy of product information is included with this submittal. More information can be provided at your request. Leaving a Legacy of Enduring Improvements to Our Communities - PURPOSE STATEMENT ENGINEERS SURVEYORS PLANNERS Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 2 of 6 RESPONSES TO PROJECT REFERRAL COMMENTS Project: C Street Directional Project, USR 13-009 Referral By: Heidi Hanson, Weld County Public Works Date of Referral: April 1, 2013 Responses By: Erin Mathews, PE Date of Responses: May 13, 2013 LRA Project No.: 0210012.00 The following responses generally follow the format of the comments received from Weld County. • We contacted the City of Greeley Review Engineer on Wednesday May 15, 2013 to discuss access and right-of-way requirements. Please refer to the response to City of Greeley project referral comments included in this submittal. • Over an acre will be disturbed during the construction of this project. Mineral Resources maintains a field wide permit for stormwater discharges associated with construction activities with the CDPHE, Certification Number COR03H509. Part of this permit includes the Stormwater Management Plan, which addresses all BMPs that will be utilized on -site to control stormwater discharge. The Stormwater Management Plan will be maintained by Mineral Resources until final stabilization is achieved and will be kept in their office. • A grading permit application will be completed prior to the start of construction. Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 3 of 6 RESPONSES TO PROJECT REFERRAL COMMENTS Project: C Street Directional Project, USR 13-009 Referral By: Frank Piacentino, Weld County Department of Building Inspection Date of Referral: March 27, 2013 Responses By: Erin Mathews, PE Date of Responses: May 13, 2013 LRA Project No.: 0210012.00 The following responses generally follow the format of the comments received from Weld County. • The Oil and Gas Permit Application will be completed prior to the start of construction of the tank battery and other associated production equipment. Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 4 of 6 RESPONSES TO PROJECT REFERRAL COMMENTS Project: C Street Directional Project, USR 13-009 Referral By: Brandon Gossard & Justin Scholz, City of Greeley Community Development Planning & Engineering Review Date of Referral: April 1, 2013 Responses By: Erin Mathews, PE Date of Responses: May 13, 2013 LRA Project No.: 0210012.00 The following responses generally follow the format of the comments received. Community Development Planning General Comments • The proposed project has been designed in accordance with Weld County Code requirements and is meeting the requirements that have been asked for by county staff. It is understood that the project will be accessed via City of Greeley right-of-way and all concerns pertaining to access and traffic will be addressed. As they have done on other projects within the City of Greeley, Mineral Resources will utilize an existing City of Greely fire hydrant to deliver the CBT water that MRI has purchased to be used during drilling and completions operations. The hydrant is located northeast of the intersection of C Street and North 28th Avenue Court and will be used to fill a temporary above ground water storage tank located on the proposed project via a temporary waterline. Mineral Resources will coordinate directly with the City on use of the hydrant. Screening/Landscaping • A landscape plan was submitted with the first USR submittal to Weld County. All proposed landscaping and screening will meet the requirements asked for by Weld County staff. Notice • All notice to surrounding land owners will be conducted by Weld County staff and performed in accordance with Weld County code. Noise • Per the approved Oil and Gas Location Assessment with the COGCC, MRI has agreed to construct a temporary buffer using hay bales between the neighborhood to the west and the mobile home park to the south to aid in attenuation of noise generated during drilling and hydraulic fracturing. Prior to the start of drilling, MRI will conduct a noise mitigation study to determine the most efficient way to mitigate noise. Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 5of6 Community Development Engineering Review General Comments • The proposed project will be phased. Upon Use by Special Review approval from Weld County, earthwork will begin to prepare the site for drilling. It is anticipated that two wells will be drilled in the late fall from this site. Once drilled, the wells will be completed. The timeline as to when additional wells will be drilled will depend on the production obtained from the first two wells. • The proposed project is meeting the COGCC and Weld County's oil and gas setbacks. Copies of all setback waivers are included with this submittal. Fire • Mineral Resources will obtain all applicable permits with the City of Greeley Fire Department and will schedule a site inspection once phase I drilling and construction of the production equipment is complete. Water/Sewer • Water used for drilling and completion of the wells will be obtained through use of a City of Greeley fire hydrant. Mineral Resources will coordinate directly with the City on use of the hydrant. Refer to pages 1 and 4 of this document for additional information pertaining to water usage. • Per Weld County Environmental Health Department's request, the existing septic system will be located and shown on the USR Plot Plan to prevent damage during construction. • All irrigation will be hand irrigated for 2 years or until landscaping becomes established. • Refer to the Conceptual Hydraulic Fracturing Layout provided with this submittal for location of completions equipment. Storm Drainage • Storm drainage was discussed with the Greeley Review Engineer on Wednesday May 15, 2013. The concerns that the city has with regard to this project affecting storm drainage conditions within the city were discussed. The city is going to review the storm drainage conditions within the surrounding area and will provide a recommendation. Floodplain • A Flood Hazard Development Permit (FHDP-8818) has been completed and conditionally approved for this project by the Weld County Department of Public Works. The proposed project will meet the requirements listed by the Public Works, Planning Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 6 of 6 Services, and Building Departments. A copy of FHDP-8818 is included with this submittal. Erosion Control • Per Weld County requirements, a grading permit application will be submitted prior to the start of construction. Included in the grading permit application is a stormwater management plan and copy of the approved CDPHE stormwater permit. This information can be shared with the City of Greeley. Development Agreement • Please provide a copy of the development agreement to Weld County so that the property owner can review. Traffic • The access from C Street will be paved for 30 feet into the property to provide vehicle tracking control. • The access radii have been revised to be 30 feet. • A Public Works Right -of -Way permit will be obtained prior to beginning any construction within the City of Greeley right-of-way. • A traffic memo detailing the truck traffic for each phase of the project is included with this submittal. Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 4 of 6 RESPONSES TO PROJECT REFERRAL COMMENTS Project: C Street Directional Project, USR 13-009 Referral By: Brandon Gossard & Justin Scholz, City of Greeley Community Development Planning & Engineering Review Date of Referral: April 1, 2013 Responses By: Erin Mathews, PE Date of Responses: May 13, 2013 LRA Project No.: 0210012.00 The following responses generally follow the format of the comments received. Community Development Planning General Comments • The proposed project has been designed in accordance with Weld County Code requirements and is meeting the requirements that have been asked for by county staff. It is understood that the project will be accessed via City of Greeley right-of-way and all concerns pertaining to access and traffic will be addressed. As they have done on other projects within the City of Greeley, Mineral Resources will utilize an existing City of Greely fire hydrant to deliver the CBT water that MRI has purchased to be used during drilling and completions operations. The hydrant is located northeast of the intersection of C Street and North 28th Avenue Court and will be used to fill a temporary above ground water storage tank located on the proposed project via a temporary waterline. Mineral Resources will coordinate directly with the City on use of the hydrant. Screening/Landscaping • A landscape plan was submitted with the first USR submittal to Weld County. All proposed landscaping and screening will meet the requirements asked for by Weld County staff. Notice • All notice to surrounding land owners will be conducted by Weld County staff and performed in accordance with Weld County code. Noise • Per the approved Oil and Gas Location Assessment with the COGCC, MRI has agreed to construct a temporary buffer using hay bales between the neighborhood to the west and the mobile home park to the south to aid in attenuation of noise generated during drilling and hydraulic fracturing. Prior to the start of drilling, MRI will conduct a noise mitigation study to determine the most efficient way to mitigate noise. Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 5 of 6 Community Development Engineering Review General Comments • The proposed project will be phased. Upon Use by Special Review approval from Weld County, earthwork will begin to prepare the site for drilling. It is anticipated that two wells will be drilled in the late fall from this site. Once drilled, the wells will be completed. The timeline as to when additional wells will be drilled will depend on the production obtained from the first two wells. • The proposed project is meeting the COGCC and Weld County's oil and gas setbacks. Copies of all setback waivers are included with this submittal. Fire • Mineral Resources will obtain all applicable permits with the City of Greeley Fire Department and will schedule a site inspection once phase I drilling and construction of the production equipment is complete. Water/Sewer • Water used for drilling and completion of the wells will be obtained through use of a City of Greeley fire hydrant. Mineral Resources will coordinate directly with the City on use of the hydrant. Refer to pages 1 and 4 of this document for additional information pertaining to water usage. • Per Weld County Environmental Health Department's request, the existing septic system will be located and shown on the USR Plot Plan to prevent damage during construction. • All irrigation will be hand irrigated for 2 years or until landscaping becomes established. • Refer to the Conceptual Hydraulic Fracturing Layout provided with this submittal for location of completions equipment. Storm Drainage • Storm drainage was discussed with the Greeley Review Engineer on Wednesday May 15, 2013. The concerns that the city has with regard to this project affecting storm drainage conditions within the city were discussed. The city is going to review the storm drainage conditions within the surrounding area and will provide a recommendation. Floodplain • A Flood Hazard Development Permit (FHDP-8818) has been completed and conditionally approved for this project by the Weld County Department of Public Works. The proposed project will meet the requirements listed by the Public Works, Planning Responses to Project Referral Comments C Street Directional Project, USR 13-009 Page 6 of 6 Services, and Building Departments. A copy of FHDP-8818 is included with this submittal. Erosion Control • Per Weld County requirements, a grading permit application will be submitted prior to the start of construction. Included in the grading permit application is a stormwater management plan and copy of the approved CDPHE stormwater permit. This information can be shared with the City of Greeley. Development Agreement • Please provide a copy of the development agreement to Weld County so that the property owner can review. Traffic • The access from C Street will be paved for 30 feet into the property to provide vehicle tracking control. • The access radii have been revised to be 30 feet. • A Public Works Right -of -Way permit will be obtained prior to beginning any construction within the City of Greeley right-of-way. • A traffic memo detailing the truck traffic for each phase of the project is included with this submittal. March 30, 2012 Mr. Thom Kerr, Interim Director Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801 Denver, Colorado 80203 Re: Request to the Director for Setback Waiver COGCC Rules 603E.(2) & 603E.(3) Location: C Street Directional Protect #1 Township 6 North, Range 66 West, Section 36 Weld County, Colorado Dear Mr. Kerr. LOP-1- RYNEARSON & ASSOCIATES BIGINEERS I SODOM I PUINDEID 4715 Innovation Drive, Suite 100 Fort Collins, Colorado 80525 IPJ 970.226.0342 WI 970.226.0879 www.LRA-lnccoin Mineral Resources is planning to develop the above mentioned location within Weld County. The well pad will be located within a designated high density area. Rule 603e.(2) of the Rules of the Colorado Oil and Gas Conservation Commission (COGCC) states that any tract of land identified as a 'High Density Area," as defined by Rule 603b, requires that at the time of initial drilling of the a well, the wellhead location shall be not less than three hundred fifty (350) feet from any building unit, educational facility, assembly building, hospital, nursing home, board and care facility, or jail. Rule 603e.(3) states that any tract of land identified as a "High Density Area," as defined by Rule 603b, requires that at the time of initial installation or construction, production tanks, pits, or associated on -site production equipment shall be located not less than three hundred fifty (350) feet from any building unit. Due to the layout of the wells and the associated production equipment and the proximity of existing building units on the property, it is unfeasible to comply with the requirements of Rules 503e.(2) and 603e.(3). Therefore, the surface owner has agreed and consented to allow Mineral Resources to obtain a variance from the COGCC or any other governmental entity, including the City of Greeley, to decrease all setbacks from the proposed location of the wells, tanks, and production equipment located on the drilling and production site to the maximum achievable setback of 200 feet from any building unit that may be constructed on the property. A copy of the setback waiver is attached. Mineral Resources has also obtained a setback waiver from the property owner to the southeast, Alejandro and Charlene Chumacero. The referenced well site location Is within 350 feet of an occupied structure owned by the Chumaceros; however, it shall be no closer than 200 feet from any occupied structure. A copy of the signed setback waiver from the Chumaceros is attached. Mineral Resources respectfully requests that the COGCC review the enclosed Information and approve the exception location request per Rule 603e.(6) for the above referenced location. Thank you for your attention to this matter. Please contact Lamp Rynearson and Associates at (970) 226-0342 with any questions or concerns. Sincerely, LAMP, RYNEARSON & ASSOCIATES, INC. Daniel Hull, PE Designated Agent Mineral Resources, Inc. enclosures Leaving a Legacy of Enduring Improvements to Our Communities - PURPOSE STATEMENT ENGINEERS SURVEYORS PLANNERS 3834359 Pages: 1 of 4 03/28/2012 11:57 AM R Fee:$2B.00 Steve Moreno, Clerk and Recorder, Weld County, CO Ell hti~'iII N�i+r'IiIM I+YIJ dril,ti�4�tN�ILLiiI �ELIH tl III SET BACK WAIVER AND CONSENT TO VARIANCE This Set Back Waiver and Consent to Variance is executed by Richmark Energy Partners, LLC. WHEREAS, Richmark Energy Partners, LLC ("Richmark") is the sole owner of a parcel of land which is referred to herein as the "Captioned Lands" and which contains the following legal description: Township 6 North, Range 66 West, 6th P.M. Section 36: Part of the S/2SE/4, more particularly described in Exhibit "A" attached hereto and made part hereof and containing 5.24 acres more or less. WHEREAS, Richmark Energy Partners, LLC has entered into an agreement with Mineral Resources, Inc., allowing Mineral Resources, Inc. to utilize the surface of the Captioned Lands to conduct drilling operations and to install and operate related oil and gas production facilities thereon. WHEREAS, Mineral Resources intends to use the Captioned Lands to conduct drilling operations and to install and operate related oil and gas production facilities thereon ("Drilling and Production Site"). Now, therefore, for good and valuable consideration, Richmark agrees as follows: (1) Richmark expressly waives any setback requirement required by any governmental entity now or hereafter in effect including any revisions or amendments (including Rule 603(e) of the Colorado Oil and Gas Conservation Commission Rules and Regulations, by the City of Greeley, and/or by Weld County) as to Mineral Resources, Inc.'s use of the Drilling and Production Site; and (2) Richmark agrees and consents to Mineral Resources, Inc. or any assignee obtaining a variance from the Colorado Oil and Gas Conservation Commission or any other governmental entity including the city of Greeley to decrease all setbacks from the proposed location of the wells, tanks and production equipment located on the Drilling and Production Site to the maximum achievable setback of 200 feet from any building unit, house, church, school or any other structure, in whole or in part, that may be constructed on the Captioned Lands. Richmark agrees further that it is not feasible or otherwise possible to relocate the well, tanks, and production equipment elsewhere. Now, therefore, in consideration of the covenants and mutual agreement by the parties, Richmark Energy Partners, LLC hereby approves and grants to Mineral Resources, Inc., as operator of the proposed wells and/or the surface property owner of the Drilling and Production Site, this Setback Waiver as may be required by the Director of the Colorado Oil and Gas Conservation Commission to request an Exception to Rule 603e and Rule 318 and any revisions or amendments of said rules. This agreement shall run with the lands, be binding upon and inure to the benefit of all parties, their successors and assigns. Signed this day 023 of //, 2012: Richmark,En� i By&Aflif Richardson, Manager 3834359 Pages: 2 of 4 03/26/2012 11:57 AM R Fee:$26.00 Steve Moreno, Clerk and er, Weld County, CO Ell I "+ir1ridnotil�i�YItVtlihi,totfirUJhfUrf'i i III STATE OF eOIorAdo COUNTY OF We/c1 ) SS. BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on thiy _ ertdiday of 2012, personally appeared Arlo Richardson as Manager of Richmark Energy Partners, LLC, known to be the identical person described in and who executed the within and foregoing instrument of writing, acknowledged to me that he duly executed the same as his free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. My Commission Expires: MOIL . / 7t aaz N YY) —y J �r- Nolaty ublic. 3)334359 es: 3 of 4 03/26120/ X11:57 1: h9 and R Fee $26.O County, CO 1111 1A.R1,trililiTIViileM Wi.tt tirktImil 4Y.iN"i 11111 Exhibit "A" Captioned Lands TOWNSHIP 6 NORTH. RANGE 66 WEST. 6TH P.M. SECTION 36: PART OF THE SW/4SE/4 BEING MORE PARTICUALARLY DESCRIBED AS FOLLOWS: PARCEL 1: ALL THAT PART OF THE SW'''A SE'. OF SECTION 36, TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE 6th P.M., COUNTY OF WELD, STATE OF COLORADO, LYING SOUTH OF THE RIGHT OF WAY OF THE GREELEY SALT LAKE AND PACIFIC RAILROAD (NOW KNOWN AS THE COLORADO AND SOUTHERN RAILROAD). EXCEPTING THEREFROM THE FOLLOWING THREE TRACTS OF LAND DESCRIBED AS FOLLOWS: 1) THE EAST 158.00 FEET OF THE ABOVE DESCRIBED TRACT; 2) THE SOUTH 122.00 FEET OF THE EAST 150.00 FEET OF THAT Part of THE SW%. OF THE SE% LYING WEST OF THE EAST 158.00 FEET; 3) ALL OF THAT Part of THE SW'/. OF THE SE / OF SECTION 36, TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE 6TH P.M. IN THE COUNTY OF WELD, STATE OF COLORADO, DESCRIBED AS FOLLOWS: BEGINNING 26.00 FEET NORTH OF THE SOUTHWEST CORNER OF THE Seast 1/4 OF SAID SECTION 36, THENCE NORTH 00° 28' WEST ALONG THE WEST LINE OF SEV. 740.00 FEET TO THE SOUTH LINE OF THE RIGHT OF WAY OF THE GREELEY SALT LAKE AND PACIFIC RAILROAD (NOW KNOWN AS THE COLORADO AND SOUTHERN RAILROAD) AS SAID RAILROAD IS NOW OCCUPIED AND USED; THENCE SOUTH 74° 12' EAST 628.00 FEET ALONG SAID RAILROAD RIGHT OF WAY; THENCE SOUTH 00° 28' EAST 502.00 FEET; THENCE SOUTH 84° 32' WEST 54.20 FEET; THENCE SOUTH 00° 28' EAST 58.00 FEET; THENCE WEST 546.00 FEET TO THE POINT OF BEGINNING. PARCEL 2: A TRACT OF LAND LOCATED IN THE SW'. OF THE SE'. OF SECTION 36, TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE 6th P.M., WELD COUNTY, COLORADO AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SW'% OF THE SE'. OF SAID SECTION 36 AND CONSIDERING THE SOUTH LINE OF THE SE'b TO BEAR NORTH 90° 00' 00" EAST, AND WITH ALL OTHER BEARINGS CONTAINED HEREIN RELATIVE THERETO; THENCE NORTH 90° 00' 00" EAST, 546.84 FEET ALONG SAID SOUTH LINE; THENCE NORTH 00° 23' 34" WEST, 24.87 FEET TO AN EXISTING MONUMENT ON THE APPARENT NORTH RIGHT OF WAY LINE OF WEST "C" STREET; THENCE ALONG THE EASTERLY BOUNDARY OF SAID TRACT OF LAND RECORDED IN BOOK 1587 AT PAGE 362 BY THE FOLLOWING TWO (2) COURSES: 1) NORTH 00° 23' 34' WEST, 58.00 FEET (58 FEET DEED); 2) NORTH 84° 32' 00" EAST, 13.22 FEET TO AN EXISTING FENCE, AND THE (..I834359 Pages: 4 of 4 03/26/2012 11:57 Steve Moreno, Clerk and Recorder, Weld County, CO ���� htiril'�i nt+wlt,h' L4�Llti1 i Nd't fill Inil IVMH'l 11111 TRUE POINT OF BEGINNING; THENCE NORTH 04° 35' 45" EAST, 507.37 FEET ALONG SAID EXISTING FENCE TO THE SOUTH RIGHT OF WAY LINE OF THE COLORADO AND SOUTHERN RAILROAD; THENCE ALONG THE EASTERLY BOUNDARY OF SAID TRACT OF LAND RECORDED 1N SAID BOOK 1587 AT PAGE 362 BY THE FOLLOWING TWO (2) COURSES: 1) SOUTH 00° 00' 57" EAST, 501.83 FEET (502 FEET DEED); 2) SOUTH 84° 32' 00" WEST, 40.98 FEET TO THE TRUE POINT OF BEGINNING. PARCELS 1 AND 2 CONTAINING A COMBINED TOTAL OF 5.24 ACRES, MORE OR LESS SET BACK WAIVER COGCC Rule 60313 Proposed Oil and Gas Directional Well Site: (Currently owned by Amy E Boyd) Township 6 North. Range 66 West, 6'h P.M. Section 36: Part of the SW/4SE/4, being more particularly described in the attached Exhibit "A" Offset Surface Property Owner: (Currently owned by Alejandro Chumacero And Charlene Chumacero) Lot B of Recorded Exemption No. 0805-36-4-RE939, being a Part of the SW/4SE/4 of Section 36, Township 6 North, Range 66 West of the 6th P.M., Weld County, Colorado as per map recorded November 17, 1986 in Book 1135 as Reception No. 2077256. Mineral Resources, Inc., as operator, intends to drill oil and gas wells directionally from a single site on lands in the SW/4SE/4 of Section 36, Township 6 North, Range 66 West, 6th P.M. (Proposed Oil and Gas Directional Well Site). The referenced well site location is situated nearer than 350 feet from an occupied structure owned by Alejandro Chumacero And Charlene Chumacero (Offset Owner), but shall be located no closer than 200 feet from any occupied structure. It has been determined by the operator of the proposed wells, the surface owner of the proposed well site and the offset surface property owner (the Parties) to the proposed well site and mutually agreed to by the Parties that it is not feasible or otherwise possible to relocate the well site elsewhere because any and all other locations within the SW/4SE/4 of Section 36, T6N, R66W, 6'h P.M. are nearly impossible to access because of surface development. Now, Therefore, in consideration of the covenants and mutual agreement by the parties, Alejandro Chumacero And Charlene Chumacero, the undersigned offset surface property owner, hereby approves and grants to the operator of the proposed wells and the surface property owner of the proposed well site this Setback Waiver as required by the Director of the Colorado Oil and Gas Conservation Commission to request an Exception to Rule 603b. The 350 foot setback requirement shall be reduced to 200 feet. This agreement shall ��run with the lands and inure to the benefit of all parties, their successors and assigns. /V Signed this day of UCI VY/efr2011: dro Chumacero PUBLIC WORKS DEPARTMENT 1111 H STREET, P.O. BOX 758 GREELEY, COLORADO 80632 WEBSITE: WWW,CO.WELD.CO.US PHONE: (970) 356-4000, EXT. 3750 FAX: (970) 304-6497 January 10, 2013 Lamp, Rynearson, & Associates, LLC Attention: Erin Mathews 4715 Innovation Dr, Suite 100 Fort Collins, CO 80525 Re: Flood Hazard Development Permit application (FHDP-8818) — Construction of a new oil and gas tank battery and associated facilities Dear Ms. Mathews, As a participant in FEMA's National Flood Insurance Program (NFIP), Weld County is required by FEMA to compliant that any with FEMA, (as defined by FEMA) occurring in a designated 100 -year floodplain or floodway is of me floodplain MA. Colorado Wad Conservation Board, and Weld County floodplain regulations. The Intent safe h flo flood damugehand ons is to ensure that sOoS not adversely occurs in a manner that keeps proposed development FHDP Conditional loo�y impact the health and safety of the public. The purpose of this Approval Letter is to provide the applicant with a brief history of the floodplain issues involved with the proposed project and to make the applicant aware of specific requirements which must be satisfied in order for Weld County and this proposed project to remain in good standing with the NFIP requirements. Failure to abide by the floodplain regulations and requirements may result in a violation case being brought before the Weld County Board of County Commissioners and potential fines. The Weld County Public Works Department has reviewed the requested Flood Hazard Development Permit (FHDP) application for the construction of a new tank battery and associated facilities. The current FHDP application an be condition* approved at this time based on the comments and requirements below. COMMENTS Applicant Request: Legal Description: Location: FIRM Community Panel Map No. 080266-0628C, September 28, 1982 and 080266-0003, September 28, 1990 Parcel Number 0805-36-0-00-009 Public Works Deoartment The FHDP application was submitted on January 7, 2013 in support of the construction of a new tank battery (18 tanks and 8 separators) and associated facilities on Parcel 0961-21-0-00-013 located approximately 1,800 feet west of 25th Ave and north of and adjacent to C St In the SW1/4 of the SE1/4, Section 36, T6N, R66W of the 6th P.M., Weld County, Colorado in the Cache La Poudre River Special Flood Hazard Area (SFHA), also known as Page 1 of 3 A roalN1O-DEVELOPMENT HEVEN1Fpm ppHNN1EC Street D'ntllyyp gTy*9MMResources DkafLllV cProject Talk Battery COMMAS Richmark Energy Partners, LLC PO Box 328 Greeley, CO 80632 Flood Hazard Development Permit number 818 for the construction of a new tank battery and associated facilities located in the Cache La Poudre River floodplain. SW1/4 of the SE1/4, Section 36, T6N, R66W of the 6th P.M., Weld County, Colorado. Approximately 1,800 feet west of 25th Ave and north of and adjacent to C St the 100 -year floodplain. Portions of the parcel are designated as Zone B on Flood Insurance Rate Map (FIRM) Panel 080266-0628C and on Flood Boundary and Floodway Map (FBFM) Panel 080266-003. This Zone B designation indicates there are published base flood elevations (BFE) and a 1 foot floodway for the floodplain on the current effective FIRM dated September 28, 1982 and FBFM dated September 28, 1990. All FIRMS are prepared, distributed, managed, and revised by the Federal Emergency Management Agency (FEMA). The FIRM has been superceded by the Army Corps of Engineers study dated 2003 which shows this area as Zone AE. The Corps study is considered best available data and is in the process of being incorporated into the Weld County DFIRM. The proposed site appears to be in a backwater area in the 2003 Corps study. The study shows that the proposed site is over 3,000 feet from the floodway boundary.applicant's engineer Corps study as the effective and duplicate effective models.They then added one cross section through the tank battery location to make the corrected effective model. They then added the topography for the tank battery for the proposed model. The HEC-RAS modeling performed by the applicant's engineer shows that the addition of the tank battery to the HEC-RAS model does not impact the 100 -year water surface elevations. The FHDP application includes the following documentation: 1. FHDP Application (Page 6) 2. FHDP Narrative that has been stamped, signed and dated by Omar R Herrera, P.E. number 42160 3. Setback waiver and consent to variance 4. Vicinity Map 5. Copy of the FEMA FIRM Map Panel Number 080266-0628C 6. FHDP Map showing the proposed tank battery facility and floodplain boundaries 7. Copy of Sheet 3 of the Corps Study Work Map 8. Copy of the Corrected Effective HEC-RAS output table. 9. Examples of anchoring that is proposed for the tank battery he following information was added to the file: 1. Copy of the current effective FIRM map (FIRMette), Panel 080266-0628C 2. Copy of Weld County GIS map showing the proposed location of the tank battery Since the oil and gas facility is a non -insurable structure and there will be no buildings on -site, an elevation certificate is not required. Please refer to the REQUIREMENTS section of this memorandum for further instructions. Department of Plannina Services Please refer to the REQUIREMENTS section of this memorandum for specific instructions. Building Departments Please refer to the REQUIREMENTS section of this memorandum for specific Instructions, Environmental Health Services Since an Individual Sewage Disposal System (ISDS) and water well will not be constructed in the floodplain or floodway, Environmental Health Services does not have concerns with the application. REQUIREMENTS: Public Works Department 1. The tanks in the tank battery shalt be anchored to prevent floatation during a flood event. Photoaraphic evidence must be submitted to Public Works upon installation of the tank battery facilities. 2. The tank battery and associated production facilities shall be oriented parallel to flood flows within the floodplain to minimize the obstruction in the 100 -year floodplain. 3. Fencing around the tank battery facility shall be of an open rail design to prevent the accumulation of debris during a must water to rise and 4. All stockpiles from the facility pad conevent. The struction lshal�rem removed to a location ronthat is outsidee without r of the FFEEMA- defined 100 -year floodplain. 5. Any future placement of fill that falls within the FEMA defined 100 -year floodplain shall obtain an amended flood hazard development permit prior to the placement of any fill. Page 2 of 3 AFww'd 1-70-I3.cloc T REVIEYA1f�opp MarEbiB C SMI wnesenr Project Tank sw.ylFrrora�9 Waalre.a.w. C SI 04xyp,r Project Tank Battey Cenaile,y 6. My future proposed development activities on this parcel that fall within the FEW -defined 100 -year floodplain shall not cause a rise in the BFE on adjacent or upstream properties or structures. My future activities on this site that may cause adverse flooding impacts must be approved through an amended flood hazard development permit (AmFHDP). 7. My fill material in the floodplain must be designed to withstand the erosional forces associated with the 100 -year storm. 8. Pursuant to Chapter 15, Articles I and II of the Weld County Code, if noxious weeds exist on the property or become established as a result of the proposed development, the applicant/landowner shall be responsible for controlling the noxious weeds. All vegetation, other than grasses, needs to be maintained at a maximum height of 12 inches until the area is completely developed. Department of Planning Services 1. Stockpiling of any material in the floodplain is not permitted due to the highly erosional nature of placement of said material in this location. Stockpiling of, and storage of, materials in the Floodway is prohibited. 2. Construction, including post construction anchoring of vessels shall comply with all requirements/conditions of the Weld County Building Code, Colorado Oil and Gas Conservation Commission and other applicable Codes, Ordinances and standards. 3. All proposed or existing structures will or do meet the minimum setback and offset requirements for the zone district in which the property is located. 4. Any future structures or uses on site must obtain the appropriate zoning and building permits. Building Department 1. All equipment installed with in the floodplain shall be secured to resist all lateral forces created by flood waters. 2. Fill used to elevate equipment within the floodplain shall be compacted to resist erosion created by flood waters. 3. All electrical equipment shall be above BFE. 4. A building permit is required for all tank battery installations. RECOMMENDATIONS: The Weld County Public Works Department or conditionally approve this FHDP application at this time. If you have any questions please feel free to contact me at the above number. Sincerely, Clayltlmmi, P.E., CFM Weld County Public Works Original: Lamp, Rynearson, S Associates, Inc, Engineer CC to File: FHDP-e1a PC by Post Klm Ogle, Planning Services Lauren Light Environmental Hearth Lin Dodge, Panning Services Richmark Energy Partnere, LW, Applicant Page 3 of 3 M'PUMNNG-DEVELOPMENT REVIEWffbod HsrrdelB C Street Directional Project Tank BaOsy1FHOP-01B Mired Rewws C St Directions' Prefect Took Battery Conant' Approval 1-101Adoc September 21, 2012 Mr. Matthew Lepore, Director Colorado Oil and Gas Conservation Commission 1120 Lincoln Street,'Suite 801 Denver, Colorado 80203 LAMP RYNEARSON & ASSOCIATES ESKERS I SlNW1Vts I PU11a% 4715 Innovalion Drive, Suit* 100 Fort Collins, Colorado 80525 (P1 970.226.0342 (PP 970.226.0879 www.LRA-Inc.com Re: Exception Setback Request to Rule 603.a.(2) Oil and Gas Location: C Street Directional #1 Township 6 North, Range 66 West, 6th PM Surface Location: SW 1/4 of the SE 1/4, Section 36 Weld County, Colorado Dear Mr. Lepore: Mineral Resources, Inc. (MRI) is planning on drilling wells at the above referenced oil and gas location, which is within one hundred and fifty (150) feet from the west property line of the property owned by the Greeley Broadcasting Corporation. MRI hereby requests an exception to Rule 603.a.(2). This exception is requested in an effort to minimize the amount of surface disturbance and the impact to surrounding land uses. MRI has obtained written consent from the Greeley Broadcasting Company (the offset surface owner). A signed copy of the Land Lease Agreement and the Oil and Gas Lease with the Greeley Broadcasting Company was submitted with the Oil and Gas Location Assessment (Document Number 400215195). MRI respectfully requests that the COGCC approve the requested exception setback request and Oil and Gas Location Assessment for the C Street Directional #1 project. Thank you for your attention to this matter. Please contact Lamp Rynearson and Associates at (970) 226- 0342 with any questions or concerns. Sincerely, LAMP, RYNEARSON & ASSOCIATES, INC. Erin Mathews, PE Designated Agent Mineral Resources, Inc. ekmlz Leaving a Legacy of Enduring Improvements to Our Communities - PURPOSE STATEMENT ENGINEERS SURVEYORS PLANNERS OIL AND GAS LEASE This Oil end Gas Lease ("Lead) is made this in of r P .2612 try and between Greeley B Corporation whose edam is C/O =RE AM RADIO 000 tit A STE 304 Conan,, CO 80631, Maas", whether one or tee) and MINERAL RESOURCE; INC, whose ddreas is P.O. Box MS, Gewmsy, COLORADO 80631("Lena-). ViTIgood and rarNESSE711, Fa EL sadinCorsidaWm of TEN DOI T.ARR the eoenaaa and agreements cared h and alter _ moist led sufficiency of which n baby aziowledged, Lea does baby pa, dam, Jesse ad 1* elesiat ad OW Lean with the exclusive rights forams*. of mkt *paths by biophysical aid other atodee Sc operating rights add palates thrdoa oil ad slips of whatsoever aura a lied (iaemding allied gas) ad the achupa necessary, rights e d a canto* Meted maw meaner to my ad all each opmtions, ad any sad all other rigia and ration aloes as cotokaly with neighboring bad certain tern or aura of al situated hi Weld Catty, Calmedn, described to wt fa sock purposes, all at TOWNSHIP 6NORTH. RANOR66 War 61M10 M, SECTION 36: PART WIRE S WAISSµ BEING MORE PARTICULARLY DESCRIBED AS FOLLOW& ALL OF THAT PART OF THE SW 1/4. OF nista 1/4 OF SECTION 36, TOWNEMP *ECRU'S!, RANGE 66 WEST OF MB 6T flu IN THE COUNTY OF WELD, STATE OF COLORADO, DEISCIUDED AS FOLLOWS: BEGINNING 26 noir NORTH OF THE SOUTHWEST CORNER OF THE SE 1/4 OF SAID SECTION 36, THENCE NORTH 0068' WEST ALONG TEE WEST I.QM OF SS 1/4 740 min TO THE SOUTH LINE OF TIM RBEiT- P -WAY OP TEE GREELI Y SALT LAKE AND PACIFIC RAILROAD (MAWINOWMAS- THE COLORADO-OCCCUP11 AND -tAnsn4rltRAS- SAID RAILROAD IS NOW SAIDRDawuSED;D sO =WU' EAST e0 EMIT ALCM* RECE SOWN FM EAST NU FEET; THENCE sans 84'3? WEST 54.2 PERTS MEWS SOUTH ow EAST 5$ FEET, TAGS WEST 546 PET TO THE POINT OF BSGQBIQ4O. INCLUDING ALL STRIPS AND PARCELS OF LAND CON1IGUODs 1B StETO ORIN SAID SECTION. CONTAINING 0.76 ACRES, MORE OR LESS (the Rsambsa•) I This leas is a a "No orI San �Y OR and Gas Lear. Re goad admdobedthat Leew b noosera or amigos shell et chat not b nt ray akin m the =bee dihe leased ha R h mdersbod hat Lessee, seam or taigas s dud any asaa b h• man oft leased leads without written cones of laser t h ithr agreed hem Lease wells. To this ed. lane the right le drM ad tle drM ad epos directional well thrash and ender said advnysotve oft beam hole latices of said baby oats tolrsmaabaahee aaaamathe all reposes aaeaehaed with sack diadem* wells. 1. athaoeeddathis eras :herb rams la it face an= dthe (S) yeas from this date Mang Tarim* as bas thereat a oil spa etwbhoevaare a kind is produced Ina Premises or on seep pooled or third therm* a apeman as arbed as baairfa provide" At any tins dabsffis Lee, Imam, ale tadr to Ian payola is its fleet of A'�Y 15thdthb option easy make at!ffW tw(S) yen Mat tM apkatlm a me � s sae dye bag bdr Mary TermdsW Iwwbya pooled or unitised herewith** laws h the eggdid aBnwallkia ow *dst to a soa he , the is m image this la than carte in Sate a lot f atl spate. at bd�t prosecuted. Hai apt AM bediscoveredad prodred a • net of rich opaubo doatla oLamp pooled or =Ma therewith. r ter the exp dub himay lira this Lana&ballco*foe is three so long as oil agar h produced tom the 2. 'l eh LEASE. caaWmskn site payment made ob 1pbd, aaapea otherwise provided bait, to mean OF camLme herewith, Irma cow hest Una shellons tag a tosery tern lass mgr not rd p to or bytimesduring deliveries r dr to i tit s May Tam amend& this Brea ale all�pmion of the Remises admire my spate or theatres° smndrd belwii format amass orldeaa,adheslievddaBc data *adogab hid ka4 6r na3. The oyalties tote pe�sbLam ao: (s) m a0 ad ehr lagaid iydroarbw, ofthat p odroed and aawed Rom wiryad,tieb pambae rawlydlbibs meat ofLessorlahs pipeline to whirhthe wells maybelaws predict o he date etpatdw;(b)onpe adds saatlt4e�df� old or meat pios dada rused Sfa mass royalty et ia the ail be ere ddpro a thetaa the ' dffis fat prow* ea PmEnsold o met Oa prodoc sold theewq the curat tive te, of pumas pooled, be tatmolltab. suck stet ellyies admit storm* off lt of allw m ow iaodatlm and wawa axes, p 5_ RwramaaaCab todhE repor the wellad to the efetheth R.a d Cap edalada he win, the royalty d he 1316 oft, w Nomaldtrad epees, tr my. sale, stn ashy Lett sre aaeeale amemt of all of the above pod'piodasian am end tenses ogress, boomer, rest total deduction shall net exceed the -mitered Mee oft pat production 4wit stormed .hew gee Somata atbnd� ofprodces pi (or Samna is tick dmsahs operation have commamsh, h t per yea per at t Pnal y Tea Lave tkhuR pay or tadr as royalty b Ion a tb address at fart* above -"s WIZ the 3 pation d are, sera papa or blab be made o or befom the sevatsy dais dish Lease mare. m or bee upthn� s Sam the date sari wen is that in a deviating tea= am commenced ad conducted. aadverasy dais of this Lae Axes the period each well h fat e or dewaaeb operations era bang Pading any shot gas 5. IfLace owns a lesser interest she Pemba than the attire am cdivided the simple estate tease, he the roa royally) beret provided /or shagsor be paid Laark the pat=which Lessor's whole and undivided ft Interest bears toto thereon, except wean from the wileofd�awr. freed cost, gas, oil end water produced on the Premiss for Lessee's operations 7. The dghtaLessorMeaderof the Land Lessen Meader may be assigned in whole or part No change in ownership of Lessor's interest (by assignment or otmwhe) shall be binding on Lame natal Lessee is been famished with notice, consisting of cafifed copies of of recorded instruments or doh and ether infanta= necessary to establish a complete d ein of record title from Lessor, sod then only with respect to payments thereafter made. No *her kind of notice, whether actual or constructive, shall be binding onLesee. No present or fntme division of Las's ownership as to different pullout orpmceh of the Premises shall operate to enlarge the obligations or diminish the rights of lase, and eft Lesee•s operations may be conducted without regard to an, suds division. Eder any pert of this Lease is assigned, no lesehold owner shall be Roble for say act or omission of any other leasehold owner. f. Lases, a its option, k hereby titan the eight and lowers any then and from time b time es e reaming right, either bey* or deer podhctm, se to all or any pert of is Premises vedette wry me or mine of the formsims thereunder, to pool or Dane S leasehold eats and the mineral mete cowed by Ms Lem with other led, lease or hoses doted immediate vicinity for the production of oil sad p, or aTarsely Ser the productions *Cahn, when in l.esess jodgmmt R i sway or anal* to do so, sod hrapactauthority of whether auority similar to (tab exists with rea ped to such other lend, leas or et My unit may � npm'whi h a well has theretofore been completed or upon which operations for dulling have theretofore bean commmeed. Pro&ctioo, drilling, reworking or dewatedog operations or a well shut in for wen of a masks anywhere man* which includes all crape of this Lease shall be treated as if it were productio , drilling, reworking or twittering spend= or a well shot In for want oft mtmt ant this Lease. In lien of the royalties elsewhere herein specified, including Sin gas royalties, Is all receive royalty on production from such mit only catboat of soul pmdmtioo allocated to this Lem; such allocates theft be that proportion atS adpo&Mim hat the total ember of arts we covered by this Lease end included in the Unit beers tot total ember of anion areas suck Unit It AR express or implied comma of the Leas Wee be subject to all Federal and Sae laws, Beath* Qders, Rules or tester, sod this Lam Well not be termb tied, In whole n s pet, nor lam hold gable in damages, for Afton to comply Sawa If.-- mw b pavuasd by, or if inch an b ht result o4 any ads law, Order, Rale reRepddos Any delay co lanmption snored by storm. Soak at at God or miser swot of three mejeme Wore not be coaled sepia lama 1g, due to the Wove cases or my came whatsoever beyond he mttrd ofLame, Lame it prevented torn om6sisg operations hereunder, such time shell not he canned against learn, and this Le dell be extended for a pried of time equal to Is time Lessee was so pavmsd, anything inthis lase to the oodhmynotwithstading. 10 Lessor hereby agrees that the Lessee shall bate the rifle at any time to redeem for Len by payment any mdlpgs, taxes cc other hens on the above described lends, his the ea of default appmat by Ian, , and be abrogated to the rights oft holder old and the =designed Lesson, y themselves and their heirs, =Mac and snips, hereby snout ad myna all right of dower which the Lease h made, asrecitdbres, buds right ddown and homestead any bdWy way orient the purposes for iii. told any one or more the pates named as Lessor heal fall to create this lam, it shall nevertheless binding upon all pries who do execute it as lent. Ilse wed' Lessor', as used in this Lease, shat man any one or more or all of the pities who ans this Lease s Lessor. Mlle provisions of this Lease shall be binding on the has, acoraco and amigos of Lessor sod Lame. IN wino= WHEREOF, his sW®m h exsomtl as oft the doe first above v oltam. stem OF ED/eafd MUM OP pat( r MOPS rdwsi�. hr rertsaeetrr IS a de oaten_ mU. posses +pourCteardn amC4LRr ag the of Greeley Broadcastingdr Carnation, stare . am~er b eeae lieSS puma *Seed e r W .sr r wino al Spine Su ea el Skis wtaahryaerr IS r, Nesmess d..eget da at camaswan,itertarmam yesrerrq.mwad wa.eaean.b aer O2/2445 1 rombees MUM LAND LEASE AGREEMENT This Land Lease Agreement is entered into the day of execution below between Greeley Broadcasting Corporation, 800 8th Ave., Suite 304, Greeley, CO 80631 ("Surface Owner") and Mineral Resources, Inc., a Colorado corporation, P.O. Box 328, Greeley, CO 80632 (referred to as "MRI"). RECITALS WHEREAS, Surface Owner owns the lands described below: Township 6 North. Range 66 West. 6th P.M, Section 36: Part of the SW/4SE/4, being more particularly described as follows: All of that Part of the SW 1/4 of the SE 1/4 of Section 36, Township 6 North, Range 66 West of the 6th.P.M. in the County of Weld, State of Colorado, described as follows: Beginning 26 feet North of the Southwest Comer of the SE 1/4 of said Section 36, thence North 0028' West along the West line of SE 1/4 740 feet to the South line of the right-of-way of the Greeley Salt Lake and Pacific Railroad, also known as the Colorado -and- Southern -Railroad as said railroad is now occupied and used; thence South 74°12' East 628 feet along said railroad right-of-way;- thence South 0°28' East 502 feet; thence South 74°12' East 628 fed along said railroad right-of-way;- thence South 0°28' East 502 feet; thence South 84°32' West 54.2 feet; thence South 0°28' East 58 feet; thence West 546 feet to the point of beginning. Including all strips and parcels of land contiguous thereto or in said section. Containing 8.76 acres, more or less (Referred to as "Subject Lands"). WHEREAS, MRI wishes to use the Subject Lands, as owned by Surface Owner; to operate and produce oil and gas wells and facilities; and WHEREAS, Surface Owner agrees to lease the surface of its property to serve as an operations/production area for the production of oil and gas wells and installation of tanks and other oil and gas equipment for wells drilled on lands adjacent to the Subject Lands. MRI agrees that it shall not locate any oil and gas wells on the Subject Lands; • NOW, THEREFORE, for good and valuable consideration, including the payment of a bonus under an Oil and Gas Lease that is executed concurrently with execution of this agreement, the receipt and sufficiency of which are acknowledged herein, the parties agrees as follows: (1) Surface owner agrees to lease and hereby leases to MRI, and its successors, assigns and designees, the surface of the Subject Lands, as described above. This Lease shall commence on February 14, 2012 and shall remain in effect at lease as long as the Oil and Gas Inane between the same parties remains in effect and as long as any oil and gas is produced from wells that are operated in whole or in part from the Subject Lands or lands adjacent thereto, which are owned by Mill or related entities or individuals, or if production ceases, as long as production is restored within a period of 180 days from the date it ceases. 1 (2) The rent for this Lease shall be the sum of , per month per acre, based on the actual acreage used by MRI front the Subject Lands. The amount of such acreage and associated rent shall be determined on a monthly basis based on the amount of acreage that is defined by fences or markers constructed by MRI on the Subject Lands. (3) MRI and any designee or assignee is given the right to use the surface of the Subject Lands to conduct oil and gas operations for the purposes of development and production of oil and gas from lands adjacent to the Subject Lands, which are owned by MRI or related entities or individuals. This right shall include, without limitation, the authority to produce oil and gas wells; to install and maintain tank batteries, meters, separators and any other production facilities; and to construct and maintain flow lines, gathering lines, pipelines, and cress roads. Further, Surface Owner conveys to MRI a non-exclusive easement as to the above flow lines, gathering lines, pipelines, and access roads and including the right of ingress and egress over the Subject Lands to access the above facilities. MRI agrees not to locate any oil and gas wells on the Subject Lands. (4) Surface Owner specifically and expressly consents to placement of oil and gas operations facilities by MRI on the Subject Lands as a surface exception location not within the drilling windows created by Rule 318A of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission, and hereby waives any setback requirements from the Colorado Oil and Gas Conservation Commission, Weld County, and the City of Cheeky (including the 150 feet setback from the property line and the 350 feet setback from building and dwelling units). Further, upon request by MRI, Surface Owner agrees to execute a Surface Use Agreement, Waiver, or whatever further documents are reasonably requested by MRI to facilitate the permitting of the wells contemplated above. (5) MRI will install fencing or markers on the leased lands, at locations in its sole discretion, to define the area being used and will not use any portion of the Subject Lands that is not enclosed within such fencing or markers. Legsf." further agrees to install concrete protective barriers around Lessor's above ground guy -wire cables and anchors. In order to protect the ground base/radials, which extend underground from the base of the tower, MRI agrees not to disturb any lands within 100 feet from the center point of the tower, as now constructed. (6) MRI agrees to indemnify, defend and hold Lessor harmless as to any losses or damages that Lessor incurs as to its property that result from the actions taken by MRI. (7) The I se shall inure to the benefit of and shall be binding upon each party's successors, assigns and designees. (8) Upon termination of the Lease, MRI shall properly reclaim the Subject Lands in accordance with the regulations of the Colorado Oil and Gas Conservation Commission. (9) Any future development or construction on the surface of the Subject Lands by Surface Owner shall be mutually agreed upon by both parties. 2 Effective as of the I �)44 date of cOotiKu ri, 2012. Surface Owner: Greeley iroadcasting corporation r•Gcc,a,4; (2,/ c'rl Ricardo Salazar, President Date: ,;52 c">( -2c"' / 2. MRI: Miners 16;6 , c. Arlo Richardson, President Date: o? -l5' /a STATE OF COLORADO COUNTY OF Aka' ss Subscribed, sworn to, and acknowledged before me this 11 day of FE'�,r'dLQ ✓1� 2012, by Ricardo Salazar as President of Greeley Broadcasting Corporation. O WITNESS my hand and official seal. My commission expires: STATE OF COLORADO ,1 COUNTY OF [Ala ) ) ) Subscribed, sworn to, and acknowledged before me this, day of 2012, by Arlo Richardson as President of Mineral Resources, Inc WITNESS my hand and official seal. My commission expires: mr6grcdey broadcasting corp\LAND LEASE AOREEMENf.doc t` i 3 Pub YADIRA RODRIGUEZ NOTARY PUBLIC STATE OF COLORADO Expkec Rovers 17, 7016 FORM 2A Rev 04/01 State of Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801, Denver, Colorado 80203 Phone: (303) 894-2100 Fax'. (303) 894-2109 Fe New Location Oil and Gas Location Assessment Amend Existing Location Location#: Submit original plus one copy. This form is to be submitted to the COGCC prior to any ground disturbance activity associated with oil and gas development operations. This Assessment may be approved as a standalone application or submitted as an informational report accompanying an Application for Permit -To -Drill, Form 2. Approval of this Assessment will allow for the construction of the below specified location; however, it does not supersede any land use rules applied by the local land use authority. This form may serve as notice to land owners and other interested parties, please see the COGCC web site at http://colorado.gov/cogcc/ for all accompanying information pertinent to this Oil and Gas Location Assessment. This location assessment is included as part of a permit application. Document Number: 400215195 Date Received: 04/02/2012 Location ID: 430474 Expiration Date: 10/16/2015 1. CONSULTATION This location is included in a Comprehensive Drilling Plan. CDP # This location is in a sensitive wildlife habitat area. This location is in a wildlife restricted surface occupancy area. This location includes a Rule 306.d.(1)A.ii. variance request. 2. Operator Operator Number: 57667 Name: MINERAL RESOURCES, INC. Address: PO BOX 328 City: GREELEY State: CO Zip: 80632 3. Contact Information Name: Collin Richardson Phone: (970) 352-9446 Fax: (800) 850-9334 email: collin@mineralresourcesinc.com 4. Location Identification: Name: C Street Directional Number: #1 County: WELD QuarterQuarter: SWSE Section: 36 Township: 6N Range: 66W Meridian: 6 Ground Elevation: 4664 Define a single point as a location reference for the facility location. This point should be used as the point of measurement in the drawings to be submitted with this application. When the location is to be used as a well site then the point shall be a well location. Footage at surface: 345 feet FSL , from North or South section line, and 1878 feet FEL , from East or West section line. Latitude: 40.438390 Longitude: -104.722620 PDOP Reading: 2.1 Date of Measurement: 08/31/2010 Instrument Operator's Name: David Berglund 5. Facilities (Indicate the number of each type of oil and gas facility planned on location): Special Purpose Pits: Condensate Tanks: Gas or Diesel Motors: Electric Generators: Gas Compressors: 1 Drilling Pits: Wells: Water Tanks: Cavity Pumps: Gas Pipeline: 2 Separators: LACT Unit: Oil Pipeline VOC Combustor: Other: Gas motor and compressor are part of VRU 32 13 Production Pits: Electric Motors: Pump Jacks: Water Pipeline: Oil Tanks: 1 16 Dehydrator Units: Multi -Well Pits: Pigging Station: Flare: Fuel Tanks: 2 6. Construction: Date Run: 10/17/2012 Doc (#4002151951 Loc Name: C Street Directional #1 Page 1 of 7 Date planned to commence construction: 11/01/2012 Size of disturbed area during construction in acres: 6.50 Estimated date that interim reclamation will begin: 06/01/2013 Size of location after interim reclamation in acres: 2.00 Estimated post -construction ground elevation: 4664 Will a closed loop system be used for drilling fluids:Yes Will salt sections be encountered during drilling: Yes No V Is H2S anticipated? Yes No jX Will salt (>15,000 ppm TDS CI) or oil based muds be used: Yes No V Mud disposal: Offsite r Onsite Method: Land Farming Land Spreading Disposal Facility Other: 7. Surface Owner: Name: _ Address: Address: City: State: Surface Owner: jX Fee Mineral Owner: r Fee The surface owner is: Zip: State State Phone: Fax: Email: Date of Rule 306 surface owner consultation: Federal Federal Indian Indian the mineral owner committed to an oil and gas lease is the executer of the oil and gas lease the applicant The right to construct the location is granted by: oil and gas lease (X Surface Use Agreement Right of Way applicant is owner Surface damage assurance if no agreement is in place: $2000 $5000 Blanket Surety ID 8. Reclamation Financial Assurance: (K Well Surety ID: 20090133 Gas Facility Surety ID: Waste Mgnt. Surety ID: 9. Cultural: Is the location in a high density area (Rule 603.b.): Yes V Distance, in feet, to nearest building: 264 , public road: 329 , railroad: 242 , property line: 210 No , above ground utilit: 296 10. Current Land Use (Check all that apply): Crop Land: Irrigated Dry land Non -Crop Land: Rangeland Timber Subdivided: Industrial Commercial Improved Pasture Hay Meadow Recreational Other (describe): TR Residential CRP 11. Future Land Use (Check all that apply): Crop Land: Irrigated Dry land Non -Crop Land: Rangeland Timber Subdivided: Industrial Commercial Improved Pasture ! Hay Meadow Recreational Other (describe): V Residential CRP 12. Soils: List all soil map units that occur within the proposed location. Attach the National Resource Conservation Service (NRCS) report showing the "Map Unit Description" report listing the soil typical vertical profile. This data is to used when segregating topsoil. The required information can be obtained from the NRCS web site at http://soildatamart.nrcs.usda.gov/ or from the COGCC web site GIS Online map page found at http://colorado.gov/cogcc. Instructions are provided within the COGCC web site help section. NRCS Map Unit Name: Aquolls and Aquents, gravelly substratum Date Run: 10/17/2012 Doc (#4002151951 Loc Name: C Street Directional #1 Page 2 of 7 NRCS Map Unit Name: NRCS Map Unit Name: 13. Plant Community: Complete this section only if any portion of the disturbed area of the location's current land use is on non -crop land. Are noxious weeds present: Yes No Plant species from: NRCS or, field observation Date of observation: List individual species: Check all plant communities that exist in the disturbed area. Disturbed Grassland (Cactus, Yucca, Cheatgrass, Rye) Native Grassland (Bluestem, Grama, Wheatgrass, Buffalograss, Fescue, Oatgrass, Brome) Shrub Land (Mahogany, Oak, Sage, Serviceberry, Chokecherry) Plains Riparian (Cottonwood, Willow, Aspen, Maple, Poplar, Russian Olive, Tamarisk) Mountain Riparian (Cottonwood, Willow, Blue Spruce) Forest Land (Spruce, Fir, Ponderosa Pine, Lodgepole Pine, Juniper, Pinyon, Aspen) Wetlands Aquatic (Bullrush, Sedge, Cattail, Arrowhead) Alpine (above timberline) Other (describe): 14. Water Resources: Rule 901.e. may require a sensitive area determination be performed. If this determination is performed the data is to be submitted with the Form 2A. Is this a sensitive area: No r Yes Distance (in feet) to nearest surface water: Was a Rule 901.e. Sensitive Areas Determination performed: No Yes 1076 , water well: 985 , depth to ground water: 6 Is the location in a riparian area: JR No Yes Was an Army Corps of Engineers Section 404 permit filed JRNo Yes Is the location within a Rule 317B Surface Water Suppl Area buffer zone: jx No 0-300 ft. zone 301-500 ft. zone 501-2640 ft. zone If the location is within a Rule 317B Surface Water Supply Area buffer have all public water supply systems within 15 miles been notified: No Yes 15. Comments: 1. Depth to groundwater determined from static water level of nearby well, receipt #9066454. 2. A surface use agreement between Richmark Energy Partners, LLC and Mineral Resources, Inc is attached allowing Mineral Resources, Inc to utilize the surface of the property to conduct drilling operations and to install and operate related oil and gas facilities. 3. Mineral Resources is requesting a variance to Rule 603e.(2) and 603e(3). A letter to the director is attached. The surface owner, Richmark Energy Partners waived any setback requirements in paragraph (1) of the attached surface use agreement. 4. Mineral Resources is requesting a variance to Rule 303.d(5). A letter to the director is attached. 5). Mineral Resources has entered into a Land Lease Agreement with the property owner to the west, Greeley Broadcasting Company, to use the surface of their land to conduct oil and gas operations for the purposes of development and production of oil and gas. The agreement allows Mineral Resources to produce oil and gas wells, install and maintain tank batteries, meters, separators, and any other production facilities, and to construct and maintain flow lines, gathering lines, pipelines and access roads. No oil and gas wells will be located on the Greeley Broadcasting property. The agreement also waives property line setback of 150 feet of Rule 603.a(2). A copy of the Land Lease Agreement and the Oil and Gas Lease with Greeley Broadcasting Company is attached. I hereby certify that the statements made in this form are, to the best of my knowledge, true, correct and complete. Signed: Date: 04/02/2012 Email: dan.hull@LRA-inc.com Print Name: Dan Hull Title: Senior Project Manager Date Run: 10/17/2012 Doc [#400215195] Loc Name: C Street Directional #1 Page 3 of Based on the information providin, t Application for Permit -to -Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: Director of COGCC Date: 10/17/2012 CONDITIONS OF APPROVAL, IF ANY: All representations, stipulations and conditions of approval stated in this Form 2A for this location shall constitute representations, stipulations and conditions of approval for any and all subsequent operations on the location unless this Form 2A is modified by Sundry Notice, Form 4 or an Amended Form 2A. Attachment Check List Att Doc Num Name 1699104 EXCEPTION LOC REQUEST 2113508 MINERAL LEASE MAP 400215195 FORM 2A SUBMITTED 400252830 WAIVERS 400252831 OIL & GAS LEASE 400252832 SURFACE AGRMT/SURETY 400252833 NRCS MAP UNIT DESC 400252834 LOCATION PICTURES 400252835 LOCATION PICTURES 400252840 ACCESS ROAD MAP 400253496 HYDROLOGY MAP 400253497 LOCATION DRAWING 400253498 MULTI -WELL PLAN 400266732 EXCEPTION LOC WAIVERS 400266733 VARIANCE REQUEST 400267612 WASTE MANAGEMENT PLAN 400267615 EXCEPTION LOC REQUEST Total Attach: 17 Files Date Run: 10/17/2012 Doc (#400215195] Loc Name: C Street Directional #1 Page 4 of 7 General Comments Comment Comment Date User Group Permit Approval of 502b variance allowing a 2A to be approved without an APD received from Director Lepore. Final reviw complete. 10/15/2012 11:17:48 AM OGLA Finalized noise BMP with the operator; passed OGLA task for final review 10/10/2012 9:50:54 AM OGLA Revised noise BMP and added a BMP stating the limit of drilling during phase 1 of the operations, per operator conversation. 10/4/2012 7:55:58 AM OGLA Phone call held with operator: operator to send additional details on noise mitigation and drilling duration; information expected by 10/4 10/3/2012 9:50:07 AM OGLA Left message for operator 9/19/12 requesting language modification on noise mitigation BMP. 9/25/2012 8:31:51 AM Permit Attached exception location to rule 603.a.(2). 9/24/2012 11:26:47 AM Permit Asked Opr for an exception location request letter for wellheads that will be less than 150' from the property line, Rule 603.a.2. Noted to Opr that when the APD's come in, the well heads at the North East end that are within 210' of the railroad will be expected to have the comment referring to the rig height per rule 603.a. 9/20/2012 10:51:51 AM OGLA Finalized residential operating BMPs with operator via phone call; OGLA review complete; changed water resources sensitive area designation to yes. 9/12/2012 1:48:57 PM OGLA The operator is requesting an exception location per Rule 603.e.(6); waivers from the two affected building unit owners are attached. 9/12/2012 1:47:53 PM OGLA Emailed requested BMPs to operator 8/8/2012 1:41:46 PM OGLA Onsite meeting held on 6/29/2012 with operator, consultant and Weld County; site development plans and urban operational BMPs were discussed; urban development BMPs are in development 7/9/2012 1:08:31 PM Permit Rec'd and uploaded mineral lease map. 502.b variance request to Rule 303.d.(5) letter attached. 4/16/2012 11:35:58 AM Permit Requested lease map from opr. 4/9/2012 9:18:05 AM Total: 13 comment(s) BMP Tvoe Comment Drilling/Completion Operations Noise abatement measures: To the extent economically practicable and technically feasible, operator will minimize nuisance noise through the following measures: 1. Schedule conspicuous noise producing activities to avoid the hours of 9:00 p.m. to 6:00 a.m. To the extent practicable the operator will avoid tripping pipe, moving heavy equipment, handling drill pipe or casing, and receiving deliveries during nighttime hours. 2. Attempt to conduct hydraulic fracturing operations during daylight hours (7:00 a.m. to 7:00 p.m.). If it is necessary to conduct 24 hour hydraulic fracturing operations, the operator shall make a effort to limit the operations to no more than a 72 hour continuous period, and notice will be given to COGCC as soon as practicable prior to the start of 24 hour operations. 3. Construct a temporary buffer using haybales between the neighborhood to the west and the mobile home park to the south to aid in attenuation of noise generated on the location during drilling and hydraulic fracturing. Additional noise mitigation will be contemplated if the measures employed are deemed insufficient. Site Specific Any compressor or vapor recovery unit installed on the location will be equipped with hospital grade mufflers and quiet design fans. age 50 Date Run: 10/17/2012 Doc (#4002151951 Loc Name: C Street Directional #1 Drilling/Completion Operations The first phase of drilling for the C -Street project will consist of 2-3 horizontal wells. The second phase of drilling is not expected to commence for 2-5 years after completion of the first. Drilling/Completion Operations Lighting abatement measures beyond the requirements of Rule 803. will be implemented, including the following, at a minimum: (1) rig oriented to direct light away from nearby residents; (2) install lighting shield devices on all of the more conspicuous lights; and (3) rig shrouded on the south and west sides. Drilling/Completion Operations Reduced emissions completions: Operator will employ completion practices that will ensure compliance with COGCC Rule 805.b.(3). Site Specific Emissions from condensate, crude oil, and produced water tanks and from glycol dehydrators shall be controlled with devices capable of achieving 95% efficiency destruction of volatile organic compounds. Operator shall comply with applicable Colorado Department of Public Health and Environment, Air Pollution Control Division permitting requirements. Planning Operator will make best efforts to reduce truck traffic related to water hauling by using an onsite water source, if available in sufficient supply from the City of Greeley, to supply drilling and completion water. Material Handling and Spill Prevention Land -farming of E&P waste will not be conducted on the location. This shall not preclude onsite disposal of E&P waste in accordance with COGCC Rules and permit conditions. Material Handling and Spill Prevention A Waste Management Plan for the land application or other beneficial reuse of drill cuttings will be submitted to COGCC for review and approval prior to moving drill cuttings from the location. Planning The operator will obtain a Use by Special Review permit for the location through Weld County. The USR requires a traffic control plan be developed and reviewed by Weld County and the City of Greeley. Material Handling and Spill Prevention Spill Prevention -All materials, waste, and fluids kept on -site will be stored in an appropriate manner to prevent contamination of the environment. -If a spill occurs, it will be cleaned up using absorbent material and by removing the contaminated soil. -Any contaminated soil will be disposed of appropriately. -All efforts will be made to prevent the spill from migrating off -site or coming into contact with stormwater runoff. -The Spill Control and Countermeasures plan will address and control all spill procedures. Storm Water/Erosion Control Fugitive Dust and Vehicle Tracking -Traffic speeds will be limited to control fugitive dust. -Watering will be completed to control fugitive dust as needed. -Graveled entries will be provided for vehicle tracking control. Refer to the Stormwater Management Plan for location. -Furrowing of disturbed soil will be provided at right angles to prevailing winds as needed. Drilling/Completion Operations Public Notice -A sign with Mineral Resources' contact information and a 24 hour contact number will be placed at or near the access road entrance. -For this project, per Weld County's Use by Special Review process, public notice will be provided by the county staff. Interim Reclamation Reclamation Interim and or final reclamation of the site will be completed per the COGCC rules and regulations. Date Run: 10/17/2012 Doc (#400215195] Loc Name: C Street Directional #1 Page 6 of 7 Storm Water/Erosion Control Stormwater -Mineral Resources maintains a Field Wide Stormwater Management Permit, Certification No. COR03H509. This site falls under this permit. -Stormwater best management practices will be completed per the site specific stormwater management plan. -Permanent seeding will be installed once all drilling and completion activities are finalized. -All stormwater best management practices will remain in place until final stabilization is achieved. Planning Construction Project Phasing -The drilling of the wells at this location will be phased. -Phasing the drilling schedule will minimize impacts to surrounding neighbors by reducing the length of continued drilling periods. Noxious Weeds -The site will be inspected for weed infested areas. -Prompt action will be taken to mitigate infested areas. -All noxious weeds identified will not be allowed to reach the flowering or seed dispersal stage. -Vehicles will not be allowed to drive through weed infested areas. -Machinery will not be parked in weed infested areas. -Vehicles sent off -site regularly will be inspected to assure that undercarriages and grill works are kept free of weed seed. -Undercarriages of vehicles or machinery potentially contaminated with noxious weed seeds will be washed before entry is made into noninfested areas. Solid Waste -The site will be cleaned of all trash and waste as soon as practical. -All waste will be stored in sealed containers until it can be disposed of appropriately. -Solid waste will be removed from the site and disposed of per state regulations for solid waste. General Housekeeping Total: 18 comment(s) Date Run: 10/17/2012 Doc [#400215195] Loc Name: C Street Directional #1 Page 7 of 7 Secondary Containment Conventional containment. 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FalconTSl.com Aromatic Modified Polymer Spray Weatherability Characteristics QUV 3800 hours QUV 1000 hours Xe Arc 1000 hours HI spc000000coirp0000ciooc HI HI IIIHIII[IIIIIIIIIIIIIIII ll llI 0000000 IIIF lHI III IIIill IIIIIIIIIIIIII C 00000000Ala 'lilt l. 0 of 111 III 0 0 0 III 0 10 0 III 0 20 IIIIIIIklllIIIIIIIIIII 0 0 30 o c 40 o 50 o o 60 0 0 70 0 0 80 SWAM 90 100 Percent of Retention Elastorner Physical Properties Tensile strength, psi 2265 Elongation, 96 190 Tear strength, pli 460 Shore D hardness 52 The polymer spray used in our patented liner retains its properties even after years of exposure to UV light and extreme weather conditions. FALCON LINER` The most durable liner in the industry Falcon Technologies produces a family of high-performance products using the patented Falcon Liner technology. The Falcon Liner is a spray -on polymer that provides a seamless, impermeable and extremely durable barrier resistant to chemicals commonly found in oil and gas operations. Weather is not an issue either —the Falcon Liner is UV resistant and retains its properties to -20°F. With a proven useful life of 20+ years, the Falcon Liner significantly extends asset life, resulting in dramatically reduced maintenance and replacement costs and a much lower life cycle economic impact. ' FALCON® TECHNOLOGIES Falcon Technologies and Services, Inc. 375 Commerce St., Suite 100 Southlake, Texas 76092 USA T: +1-817-251-0525 FalconTSl.com Barnett I Eagle Ford I Fayetteville I Haynesville I Marcellus I Niobrara I Permian I San Juan I Utica A CARBO Company O2012 Falcon Technologies and Services, Inc. All Rights Reserved. 1001_116 Hello