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HomeMy WebLinkAbout20102822.tiff Esther Gesick From: Kim Ogle Sent: Thursday, November 18, 2010 1:12 PM To: Esther Gesick Subject: FW: Documentation of oil and gas communications Attachments: (10-29-2010)#1 Compatible Development Agrement Rocky Mountain Wildlife- revised.pdf; (10-29-2010)#1 Compatible Development Agrement Rocky Mountain Wildlife.pdf; RE_ Contact for Wild Animal Sanctuary.pdf; RE_Minerals Compatible Development Agreement.pdf; RE_Rocky Mountain Wildlife Conservation Center--Weld County USR for exotic animals.pdf; Rocky Mountain Wildlife Conservation Center--Weld County USR for exotic animals.pdf; Rocky Mountain Wildlife Sanctuary_Weld County USR Permit Application.pdf; Signed Proposal Letter for Hard Rock Minerals.pdf; Wild Animal Sanctuary Special Use Permit Meeting.pdf Hello Esther, Please add to AmUSR-1253 File Thanks, Kim From: Pat Craig fmailto:Pat@wildlife-sanctuarv.orol Sent: Thursday, November 18, 2010 12:41 PM To: Kim Ogle Subject: Documentation of oil and gas communications HI Kim, I'm attaching all the correspondence we've had with the Oil and Gas companies that demonstrates we both worked toward agreements pertaining to minerals and oil and gas exploration. Unfortunately,we were unable to reach a written agreement in either case, but we both agreed to continue to respect each other's interests in the property going forward. / .. 0,771) if Pat Craig Executive Director dGL ( Companion 'Y.r,�kr. pro•. Nnctu tvrti ,Net w uw.W. itclA nima lSanr ware.O!. SANCTUARY www.wildanimalsanctuarv.org Saving one animal may not change the world.. out surely, for that one animal.. The world will change forever! 2010-2822 eav'ru en catcrv_v //-c2Z_ !)/O 1 /�L /37 / Draft#1 dated October 25,2010 COMPATIBLE DEVELOPMENT AGREEMENT THIS COMPATIBLE DEVELOPMENT AGREEMENT ("Agreement") is effective this day of , 2010, by and among ANADARKO E&P COMPANY LP("Anadarko E&P"), formerly known as Union Pacific Resources Company, ANADARKO LAND CORP. ("Anadarko Land"), formerly known as Union Pacific Land Resources Corporation(together the"Anadarko Entities"), both with an address of 1099 I8it Street, Suite 1800, Denver, Colorado 80202; FOUNDATION ENERGY MANAGEMENT LLC,Manager of Foundation Energy Fund I,LLC("Foundation"),with an address of 14800 Landmark Boulevard,Suite 220,Dallas,Texas 75254(Foundation and the Anadarko Entities are sometimes referred to hereinafter separately or together as an"Oil Company"or the"Oil Companies") and THE WILDLIFE SANCTUARY ("Surface Owner") with an address of 1946 County Road 53, Keensburg, Colorado 80643. Surface Owner and the Oil Companies are hereinafter sometimes referred to alone or collectively as a"Party"or the"Parties." A. Surface Owner proposes to further develop the surface estate for property located in Weld County,Colorado,described as the SW/4 of Section 21,Township I North, Range 64 West, among other property, as a sanctuary for the rescue and care of exotic animals, boarding, kennels, veterinary clinics and public education buildings ("Sanctuary"), such property being hereinafter referred to as the"Property"and more specifically described in the attached Exhibit 1. B. Surface Owner has applied to Weld County for an amendment to a site specific development plan and use by special review permit to expand the sanctuary facilities on the Property. C. The Anadarko Entities together own all of the oil, gas and associated hydrocarbons that underlie the Property,and Anadarko Land owns the minerals exclusive of oil,gas and associated hydrocarbons that underlie the Property. D. Foundation owns certain oil and gas leasehold rights for the Property that it acquired through the Anadarko Entities or a predecessor of an Anadarko entity and operates a well on the Property,generally located in the SE/4SW/4, identified as the UPRR-Amber 24- 21 X well,and hereinafter referred to as the"Existing Well." E. Current rules and regulations of the Colorado Oil and Gas Conservation Commission("COGCC")allow the owners and/or lessees of the oil and gas for the Property to locate oil and/or gas wells in five drilling windows in a quarter section, one in approximately the center of each quarter section in a 400 by 400 foot window and one in the center of the quarter section in an 800 foot by 800 foot window. F. The Parties enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate for the Property and to reasonably accommodate the other. Page 1 of 13 G. This Agreement is limited to the compatible development of the surface estate and the oil and gas estate for the Property; it does not in any respect apply to the minerals other than the oil, gas and associated hydrocarbons owned by Anadarko Land in the Property. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the Parties agree as follows: 1 . Oil and Gas Operations Areas and Production Facility Location. a. The Oil Companies shall drill and/or operate oil and/or gas wells only within the Oil Gas Operation Area in the SE/4SW/4 that includes the Existing Well ("Existing Well I Location") and in the legal COGCC approved drilling windows in the centers of the SW/4, NEJ4SW/4, NW/4SW/4 and SW/4SW/4, all as depicted on Exhibit 2 ("Undrilled Locations") and as more specifically described herein. All of such areas are referred to alone or together as an "Oil and Gas Operations Area" or the "Oil and Gas Operations Areas." b. The Oil and Gas Operations Area for the Existing Well shall include the area that is in thepize and configuration depicted on,Exhibit,2. The Oil and Gas Operations Areas Formatted: Highlight for the Undrilled Locations shall be selected by the Oil Companies at the time a well is Formatted: Highlight proposed to be drilled and generally in the size and configuration for the Existing Well and { Formatted: Highlight J within the applicable legal window. c. Except as otherwise provided in section 4, the Oil and Gas Operations Areas shall be made available to the Oil Companies for their exclusive use in their present condition for all oil and gas operations to be conducted by them, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing, re- fracturing, twinning, and the drilling of replacement wells and the location of associated oil and gas production and drilling equipment and facilities, including tanks, separators, dehydrators, compressors and other equipment reasonably appropriate for the operation and production of wells. d. The Oil Companies shall continue to have the right to drill one or more wells I with attendant facilities within the Oil and Gas Operations Areas and to deepen, recomplete or twin any well that is drilled or has been drilled, as well as to drill directional and horizontal wells that produce from and drain the Property and lands other than the Property. e. Surface Owner shall not plat any surface property line or install or construct fences, roadways, trees, bushes or any other permanent or temporary improvements,within or Formatted: Highlight beneath the Oil and Gas Operations Area for the Existing Well or the pipeline easement provided for herein for such well, and no temporary or permanent building or other structure or improvement shall be located by Surface Owner within the Oil and Gas Operations Area or the pipeline easement area for the Existing Well. I The provisions in this section I shall apply to the Undrilled Loeations and i ieir re atee Oi ant Gas Operations Areas after tie time t tat a we is proposee to be cri ea in the Undrilled Location. Page 2 of 13 g. Foundation currently has production facilities in the location depicted on Exhibit 2 as the "Production Facility Location" and hereinafter referred to as such. The Production Facility Location shall be the size and configuration depicted on the Exhibit and the restrictions in subsection 1 .e. shall apply to the Production Facility Location. 2. Access to Oil and Gas Operations Areas and Production Facility Location. a. Access to the Oil and Gas Operations Area and Production Facility Location for the Existing Well shall be at the location depicted on Exhibit 2. Access to each Undrilled Location shall be determined by the Parties at the time a well is proposed to be drilled within the Undrilled Location, such access route to be convenient to the Oil Companies. b. The Oil Companies shall install and/or maintain access roads they construct on the Property to those state and local standards that apply to oil and gas operations, and such roads shall be at least thirty (30) feet in width. c. Surface Owner, in connection with its use of the surface of the Property, may use the access roads or portions of access roads that are constructed or installed by the Oil Companies; provided, however, the Oil Companies make no representation or warranty as to the condition of the roads or their suitability for use by Surface Owner. 3. Pipelines and Pipeline Easements. a. Subject to the limitations hereinafter described, the Oil Companies and Kerr- McGee Gathering LLC ("KMGG"), an affiliate of the Anadarko Entities, or other designated gas gatherer have a continuing right and entitlement to own, operate, maintain, repair and replace all flowlines, gathering lines and other pipelines that may be necessary or convenient to operations on the Property and to make all necessary well connections to the Existing Well and future wells. b. The pipeline easement for the Existing Well shall be at the location depicted on Exhibit 2. Pipeline easements for future wells shall be determined at the time a well is pro)osec to be cri •ec. wit tin an Uneri lee location; provicer , tuwever, sues location for he pipeline-easement-to be convenient to the Oil Companies. c. Pipeline easements shall be fifty (50) feet in width during construction activities and thirty (30) feet in width for all operations, maintenance and transportation activities. d. Surface Owner shall grant the pipeline easements (for production from the Property and/or other lands) to the Oil Companies or KMGG at the time the Oil Companies request them. Page 3ofl3 4. Coordination of Proposed Oil and Gas Operations with Surface Activities. The Parties understand that there are now and may in the future be structures or improvements in the drilling windows for the Undrilled Locations and that Surface Owner may install additional structures and improvements on the Property related to the Sanctuary, including, animal enclosures and public education buildings and that animals are resident on the Property as part of the Sanctuary. In this respect, the following shall apply to all Oil and Gas Operations Areas: a. The Oil Companies will give Surface Owner sixty (60) days advance written Formatted: centered, Don't adjust space between notice of their intention to commence the drilling of a well or wells within an Undrilled Latin and Asian text ILocation, and Surface Owner, at its sole cost and expense, shall within (20) twenty days from the date it receives notice of intent to drill ("Clean Up Period") remove all structures, improvements and animals from the Undrilled Location and related Oil and Gas Operations IArea to the satisfaction of the Oil-Companies. The Oil Companies will meet at the site with Surface Owner, as requested and as necessary, to coordinate proposed oil and gas operations with the operations of the Sanctuary. b. In the event that Surface Owner for any reason fails to perform the operations described in subsection 4.a. within the Clean Up Period ("Qperations"),-the Oil Companies may perform the Operations, all at the cost and expense of Surface Owner. c. Sur bee Owner wi give tie Oi Com xtnies written notice no ess man thirty (30 eays -prior to tie time t tat Sur ice Owner proposes to construct or instil stir ace or subsurface improvements that intersect or could in anyway interfere with existing or oro Jose( of am gas o aerations wit tin t le Oi am Gas Operations Areas or tie Um ri ed Locations. Surface Owner will meet at the site with the Oil Companies to coordinate such construction or installation with prospective oil and gas operations. d. Surface Owner and the Oil Companies further agree that they will work cooperatively to meet with each other on a periodic basis idler the commencement of further oil and gas operations on the Property and-also from time to time, as necessary, to discuss future operations that each has planned on the Property, to coordinate access, and to resolve existing and future surface use conflicts that may arise in the performance of their separate operations on the Property. 6. Governmental Proceedings. a. Surface Owner Will—Not Object. Provided that the Oil Companies are in comp lance wit i t its Agreement and t tat t le request is consistent wit t t its Agreement and the Exhibits, Surface Owner-agrees that: 1) it-will not object in any forum to the use by the Oil Companies of tie stir nee of tie Property consistent wit 1 t tis Agreement ant. nereby waives any suet rig n to object or to request a permit conc ition, stir 'ace inspection or tearing beibre any state or local jurisdiction; and ii) it will provide such other written approvals and waivers that are requested by the Oil Companies and consistent with this Agreement: including, but not limited to, all approvals and waivers, to conduct oil and gas operations on Page 4 of 13 the Property because of any law or regulation, including any local ordinance and regulations of the COGCC. b. The Oil Companies Will Not Object. Provided that Surface Owner is in compliance with this Agreement and that the request is consistent with this Agreement and the Exhibits, the Anadarko Entities with respect to their oil and gas interests in the Property and Foundation agree that they will not object in any forum to a request by Surface Owner for a site specific development plan and use by special review or amendments thereto. 7. Compliance with Common Law and Statutory and Regulatory Requirements. Surface Owner ane tie Oi Coin merles express y ac-mow edge t iat t uis Agreement s is be ceemee to be s )eci jut y a ) i 'cap e to, ant to u y satisfy, any •ob igations of tie Oil Companies and Surface Owner to reasonably accommodate the use of the surface -of--tie Property by Surface Owner, on the one hand, and the Oil Companies, en the other hand, existing and future, and Surface Owner and the Oil Companies waive any statutory and common law claims to the contrary, including, but not limited to, any claims pursuant to C.R.S. 34 60 127. 8. Notice of 1-learings. Surface Owner shall provide the Oil Companies with thirty (30) days advance written notice of-hearings in local jurisdictions. 9. Drilling and Completion Operations. The Oil Companies shall diligently pursue any drilling operations to minimize the total periods and to avoid rig relocations or startup during the course of drilling. Surface Owner waives any objections to continuous (i.e. 24 hour) drilling operations. 10. Individual Liability of Oil Companies. Nothing in this Agreement is intended to create a cause of action by any Oil Company against any other Oil Company or to enlarge or diminish any right or interest created by any agreement or lease or assignment of lease between or among the Oil Companies. Nothing in this Agreement creates any leasehold rights or gives any mineral rights to an Oil Company where none exists. The liability of the Oil Companies to perform any obligation hereunder or to comply with any agreement included herein or with any state or local rule or regulation is individual and several and not joint or collective. This Agreement does not create a joint venture or partnership between or among the Oil Companies. The Anadarko Entities shall in no event be liable for the acts or omissions o ' t ieir essees or Eirinoutees or tie assignees or contractors and subcontractors o" any of them- 11 . Waiver of Setback Requirements. a. Sur ace Owner uncerstancs anc ac•cnowec ges that t ie COGCC oas rules and regulations--that—apply to the distance between a wellhead and public roads, production hci ities, bus Bing units ant surface property ines, among of ier t sings. Surface Owne} hereby waives all setback requirements in COGCC Rule 603, or any successor nile Of amenc meat to tie COGCC set lac c ru es, ine tic ing lig i tensity ru es, ant to any of ier state or loca setbacK £requirements t iat are or become inconsistent wit i his Agreement or trial would prohibit or interfere with the rights of the Oil Companies to explore for and produee Page 5 of 13 the oil-and-gas in accordance with this Agreement. Surface Owner understands that the Oil Companies may cite t to waiver in t tis section in orcer to obtain a ocation exception or variance under COGCC rules or from a local jurisdiction. b. t lose areas o t w property of per t ian t ze Oil ane Gas O )erations Areas, pipeline easements and access roads, in the event that surface development for all or portions o' t ie 7roperty ;nig it be consicerec to Je a "eesignatec outside activity area" tinter COGCC rules and regulations. Surface Owner agrees and consents to the location, configuration and setbaccs 'or t w Oi ane Gas Operations Area 7w- he -existing We ant proc action -aci ity Location depicted on Exhibit 2, and for Oil and Gas Operations Areas established hereunder for Uncri 1.oeations, ane Sur aee Owner lereby waives any rig-its it as to ob.ect to or to request a gearing before tie COGCC or any ocu jurisciction to request setbaccs t iat are different from those that are contemplated in this Agreement and depicted on Exhibit 2. Sur ace Owner wi l jroviee tie Oi Corn lames wit w latever written consents or sunor that the Oil Companies -may request-in order to-drill wells and locate production facilities within the Oil and Gas Operations Areas. 12. Amendments to the Agreement. The Parties shall amend this Agreement from time to time to reflect the locations of Oil and Gas Operations Areas for Undrilled Locations and related access routes and pipeline easements, and they shall record the amendments in Weld County. 13. Authority to Execute Agreement. Each Party represents that it has the full right and authority to enter into this Agreement with respect to the surface rights or oil and gas interests it owns in the Property, as applicable. 14. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the subsequent lessees and the personal representatives, heirs, successors and assigns of all of the Parties, and the benefits of this Agreement shall inure to all of them. 15. Recording. The Anadarko Entities shall record this Agreement with the Clerk and Recorder of Weld County and provide a recorded copy to the other Parties. 16. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado, without reference to its conflicts of laws provisions. 17. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. Page 6 of 13 18. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by: i) personal delivery; ii) expedited delivery service with proof of delivery; iii)registered or certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Anadarko E&P Anadarko E&P Company LP and Anadarko Land c/o Anadarko Petroleum Corporation and KMGG: 1099 18th Street,Suite 1800 Denver,Colorado 80202 Foundation: Foundation Energy Management,LLC 14800 Landmark Boulevard,Suite 220 Dallas,Texas 75254 Surface Owner The Wildlife Sanctuary do Pat Craig 1946 County Road 53 Keensburg,Colorado 80643 Any Party may, by written notice as provided in this section, change the address of the individual to whom delivery of notices shall be made thereafter. 19. Incorporation by Reference. Exhibits 1 and 2 are incorporated into this Agreement by this reference. 20. Entire Agreement. This Agreement sets forth the entire understanding among the Parties and supersedes any previous communications, representations or agreements, whether oral or written.No change of any of the terms or conditions herein shall be valid or binding on any Party unless in writing and signed by an authorized representative of each Party. 21. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original,but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF,the undersigned Parties have caused this Agreement to be executed by duly authorized representatives on the dates set forth in the acknowledgments, but to be effective on the date first above written. THE WILDLIFE SANCTUARY ANADARKO E&P COMPANY LP By: By: Name: Name: Its: Its: Page 7 ofl3 FOUNDATION ENERGY ANADARKO LAND CORP. MANAGEMENT LLC By: By: Name: Name: Its: Its: ACKNOWLEDGMENTS STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by , as ,for ANADARKO E&P COMPANY LP. Witness my hand and official seal. My Commission expires: Notary Public STATE OF ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by as _,for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public Pages of 13 STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by as , for FOUNDATION ENERGY MANAGEMENT LLC. Witness my hand and official seal. My Commission expires: Notary Public STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by , as ,for THE WILDLIFE SANCTUARY. Witness my hand and official seal. My Commission expires: Notary Public Page 9 of13 Exhibit 1 to Compatible Development Agreement effective ,2010 by and among Anadarko E&P Company LP,Anadarko Land Corp.,Foundation Energy Management LLC and The Wildlife Sanctuary Legal Description Township 1 North,Rance 64 West Section 21:SW/4 Weld County,Colorado Page 10 of13 Exhibit 2 to Compatible Development Agreement effective ,2010 by and among Anadarko E&P Company LP,Anadarko Land Corp.,Foundation Energy Management LLC and The Wildlife Sanctuary See attached map consisting of one page. Page 11 of 13 ray, iza13 bla. ' -(o a) Draft#1 dated October 25, 2010 COMPATIBLE DEVELOPMENT AGREEMENT THIS COMPATIBLE DEVELOPMENT AGREEMENT ("Agreement") is effective this day of , 2010, by and among ANADARKO E&P COMPANY LP ("Anadarko E&P"), formerly known as Union Pacific Resources Company, ANADARKO LAND CORP. ("Anadarko Land"), formerly known as Union Pacific Land Resources Corporation (together the "Anadarko Entities"), both with an address of 1099 18`h Street, Suite 1800, Denver, Colorado 80202; FOUNDATION ENERGY MANAGEMENT LLC, Manager of Foundation Energy Fund I, LLC ("Foundation"), with an address of 14800 Landmark Boulevard, Suite 220, Dallas, Texas 75254 (Foundation and the Anadarko Entities are sometimes referred to hereinafter separately or together as an "Oil Company" or the "Oil Companies") and THE WILDLIFE SANCTUARY ("Surface Owner") with an address of 1946 County Road 53, Keensburg, Colorado 80643. Surface Owner and the Oil Companies are hereinafter sometimes referred to alone or collectively as a"Party"or the"Parties." A. Surface Owner proposes to further develop the surface estate for property located in Weld County, Colorado, described as the SW/4 of Section 21, Township 1 North, Range 64 West, among other property, as a sanctuary for the rescue and care of exotic animals, boarding, kennels, veterinary clinics and public education buildings ("Sanctuary"), such property being hereinafter referred to as the "Property" and more specifically described in the attached Exhibit 1. B. Surface Owner has applied to Weld County for an amendment to a site specific development plan and use by special review permit to expand the sanctuary facilities on the Property. C. The Anadarko Entities together own all of the oil, gas and associated hydrocarbons that underlie the Property, and Anadarko Land owns the minerals exclusive of oil, gas and associated hydrocarbons that underlie the Property. D. Foundation owns certain oil and gas leasehold rights for the Property that it acquired through the Anadarko Entities or a predecessor of an Anadarko entity and operates a well on the Property, generally located in the SE/4SW/4, identified as the UPRR-Amber 24- 21X well, and hereinafter referred to as the "Existing Well." E. Current rules and regulations of the Colorado Oil and Gas Conservation Commission ("COGCC") allow the owners and/or lessees of the oil and gas for the Property to locate oil and/or gas wells in five drilling windows in a quarter section, one in approximately the center of each quarter section in a 400 by 400 foot window and one in the center of the quarter section in an 800 foot by 800 foot window. F. The Parties enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate for the Property and to reasonably accommodate the other. Page 1 of 12 G. This Agreement is limited to the compatible development of the surface estate and the oil and gas estate for the Property; it does not in any respect apply to the minerals other than the oil, gas and associated hydrocarbons owned by Anadarko Land in the Property. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the Parties agree as follows: 1. Oil and Gas Operations Areas and Production Facility Location. a. The Oil Companies shall drill and/or operate oil and/or gas wells only within the Oil Gas Operation Area in the SE/4SW/4 that includes the Existing Well ("Existing Well Location") and in the legal COGCC approved drilling windows in the centers of the SW/4, NE/4SW/4, NW/4SW/4 and SW/4SW/4, all as depicted on Exhibit 2 ("Undrilled Locations") and as more specifically described herein. All of such areas are referred to alone or together as an"Oil and Gas Operations Area" or the"Oil and Gas Operations Areas." b. The Oil and Gas Operations Area for the Existing Well shall include the area that is in the size and configuration depicted on Exhibit 2. The Oil and Gas Operations Areas for the Undrilled Locations shall be selected by the Oil Companies at the time a well is proposed to be drilled and generally in the size and configuration for the Existing Well and within the applicable legal window. c. Except as otherwise provided in section 4, the Oil and Gas Operations Areas shall be made available to the Oil Companies for their exclusive use in their present condition for all oil and gas operations to be conducted by them, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing, re- fracturing, twinning, and the drilling of replacement wells and the location of associated oil and gas production and drilling equipment and facilities, including tanks, separators, dehydrators, compressors and other equipment reasonably appropriate for the operation and production of wells. d. The Oil Companies shall continue to have the right to drill one or more wells with attendant facilities within the Oil and Gas Operations Areas and to deepen, recomplete or twin any well that is drilled or has been drilled, as well as to drill directional and horizontal wells that produce from and drain the Property and lands other than the Property. e. Surface Owner shall not plat any surface property line or install or construct fences, roadways, trees, bushes or any other permanent or temporary improvements within or beneath the Oil and Gas Operations Area for the Existing Well or the pipeline easement provided for herein for such well, and no temporary or permanent building or other structure or improvement shall be located by Surface Owner within the Oil and Gas Operations Area or the pipeline easement area for the Existing Well. f. The provisions in this section 1 shall apply to the Undrilled Locations and their related Oil and Gas Operations Areas after the time that a well is proposed to be drilled in the Undrilled Location. Page 2 of 12 g. Foundation currently has production facilities in the location depicted on Exhibit 2 as the "Production Facility Location" and hereinafter referred to as such. The Production Facility Location shall be the size and configuration depicted on the Exhibit and the restrictions in subsection 1.e. shall apply to the Production Facility Location. 2. Access to Oil and Gas Operations Areas and Production Facility Location. a. Access to the Oil and Gas Operations Area and Production Facility Location for the Existing Well shall be at the location depicted on Exhibit 2. Access to each Undrilled Location shall be determined by the Parties at the time a well is proposed to be drilled within the Undrilled Location, such access route to be convenient to the Oil Companies. b. The Oil Companies shall install and/or maintain access roads they construct on the Property to those state and local standards that apply to oil and gas operations, and such roads shall be at least thirty(30) feet in width. c. Surface Owner, in connection with its use of the surface of the Property, may use the access roads or portions of access roads that are constructed or installed by the Oil Companies; provided, however, the Oil Companies make no representation or warranty as to the condition of the roads or their suitability for use by Surface Owner. 3. Pipelines and Pipeline Easements. a. Subject to the limitations hereinafter described, the Oil Companies and Kerr- McGee Gathering LLC ("KMGG"), an affiliate of the Anadarko Entities, or other designated gas gatherer have a continuing right and entitlement to own, operate, maintain, repair and replace all flowlines, gathering lines and other pipelines that may be necessary or convenient to operations on the Property and to make all necessary well connections to the Existing Well and future wells. b. The pipeline easement for the Existing Well shall be at the location depicted on Exhibit 2. Pipeline easements for future wells shall be determined at the time a well is proposed to be drilled within an Undrilled Location; provided, however, such location for the pipeline easement to be convenient to the Oil Companies. c. Pipeline easements shall be fifty (50) feet in width during construction activities and thirty (30) feet in width for all operations, maintenance and transportation activities. d. Surface Owner shall grant the pipeline easements (for production from the Property and/or other lands) to the Oil Companies or KMGG at the time the Oil Companies request them. Page 3 of 12 4. Coordination of Proposed Oil and Gas Operations with Surface Activities. The Parties understand that there are now and may in the future be structures or improvements in the drilling windows for the Undrilled Locations and that Surface Owner may install additional structures and improvements on the Property related to the Sanctuary, including, animal enclosures and public education buildings and that animals are resident on the Property as part of the Sanctuary. hi this respect, the following shall apply to all Oil and Gas Operations Areas: a. The Oil Companies will give Surface Owner sixty (60) days advance written notice of their intention to commence the drilling of a well or wells within an Undrilled Location, and Surface Owner, at its sole cost and expense, shall within (20) twenty days from the date it receives notice of intent to drill ("Clean Up Period") remove all structures, improvements and animals from the Undrilled Location and related Oil and Gas Operations Area to the satisfaction of the Oil Companies. The Oil Companies will meet at the site with Surface Owner, as requested and as necessary, to coordinate proposed oil and gas operations with the operations of the Sanctuary. b. In the event that Surface Owner for any reason fails to perform the operations described in subsection 4.a. within the Clean Up Period ("Operations"), the Oil Companies may perform the Operations, all at the cost and expense of Surface Owner. c. Surface Owner will give the Oil Companies written notice no less than thirty (30) days prior to the time that Surface Owner proposes to construct or install surface or subsurface improvements that intersect or could in anyway interfere with existing or proposed oil and gas operations within the Oil and Gas Operations Areas for the Undrilled Locations. Surface Owner will meet at the site with the Oil Companies to coordinate such construction or installation with prospective oil and gas operations. d. Surface Owner and the Oil Companies further agree that they will work cooperatively to meet with each other on a periodic basis after the commencement of further oil and gas operations on the Property and also from time to time, as necessary, to discuss future operations that each has planned on the Property, to coordinate access, and to resolve existing and future surface use conflicts that may arise in the performance of their separate operations on the Property. 6. Governmental Proceedings. a. Surface Owner Will Not Object. Provided that the Oil Companies are in compliance with this Agreement and that the request is consistent with this Agreement and the Exhibits, Surface Owner agrees that: i) it will not object in any forum to the use by the Oil Companies of the surface of the Property consistent with this Agreement and hereby waives any such right to object or to request a permit condition, surface inspection or hearing before any state or local jurisdiction; and ii) it will provide such other written approvals and waivers that are requested by the Oil Companies and consistent with this Agreement, including, but not limited to, all approvals and waivers to conduct oil and gas operations on Page 4 of 12 the Property because of any law or regulation, including any local ordinance and regulations of the COGCC. b. The Oil Companies Will Not Object. Provided that Surface Owner is in compliance with this Agreement and that the request is consistent with this Agreement and the Exhibits, the Anadarko Entities with respect to their oil and gas interests in the Property and Foundation agree that they will not object in any forum to a request by Surface Owner for a site specific development plan and use by special review or amendments thereto. 7. Compliance with Common Law and Statutory and Regulatory Requirements. Surface Owner and the Oil Companies expressly acknowledge that this Agreement shall be deemed to be specifically applicable to, and to fully satisfy, any obligations of the Oil Companies and Surface Owner to reasonably accommodate the use of the surface of the Property by Surface Owner, on the one hand, and the Oil Companies, on the other hand, existing and future, and Surface Owner and the Oil Companies waive any statutory and common law claims to the contrary, including, but not limited to, any claims pursuant to C.R.S. 34-60-127. 8. Notice of Hearings. Surface Owner shall provide the Oil Companies with thirty(30) days advance written notice of hearings in local jurisdictions. 9. Drilling and Completion Operations. The Oil Companies shall diligently pursue any drilling operations to minimize the total periods and to avoid rig relocations or startup during the course of drilling. Surface Owner waives any objections to continuous (i.e. 24 hour) drilling operations. 10. Individual Liability of Oil Companies. Nothing in this Agreement is intended to create a cause of action by any Oil Company against any other Oil Company or to enlarge or diminish any right or interest created by any agreement or lease or assignment of lease between or among the Oil Companies. Nothing in this Agreement creates any leasehold rights or gives any mineral rights to an Oil Company where none exists. The liability of the Oil Companies to perform any obligation hereunder or to comply with any agreement included herein or with any state or local rule or regulation is individual and several and not joint or collective. This Agreement does not create a joint venture or partnership between or among the Oil Companies. The Anadarko Entities shall in no event be liable for the acts or omissions of their lessees or farmoutees or the assignees or contractors and subcontractors of any of them. 11. Waiver of Setback Requirements. a. Surface Owner understands and acknowledges that the COGCC has rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. Surface Owner hereby waives all setback requirements in COGCC Rule 603, or any successor rule or amendment to the COGCC setback rules, including high density rules, and to any other state or local setback requirements that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of the Oil Companies to explore for and produce Page 5 of 12 the oil and gas in accordance with this Agreement. Surface Owner understands that the Oil Companies may cite the waiver in this section 11 in order to obtain a location exception or variance under COGCC rules or from a local jurisdiction. b. For those areas of the Property other than the Oil and Gas Operations Areas, pipeline easements and access roads, in the event that surface development for all or portions of the Property might be considered to be a "designated outside activity area" under COGCC rules and regulations, Surface Owner agrees and consents to the location, configuration and setbacks for the Oil and Gas Operations Area for the Existing Well and Production Facility Location depicted on Exhibit 2, and for Oil and Gas Operations Areas established hereunder for Undrilled Locations, and Surface Owner hereby waives any rights it has to object to or to request a hearing before the COGCC or any local jurisdiction to request setbacks that are different from those that are contemplated in this Agreement and depicted on Exhibit 2. Surface Owner will provide the Oil Companies with whatever written consents or support that the Oil Companies may request in order to drill wells and locate production facilities within the Oil and Gas Operations Areas. 12. Amendments to the Agreement. The Parties shall amend this Agreement from time to time to reflect the locations of Oil and Gas Operations Areas for Undrilled Locations and related access routes and pipeline easements, and they shall record the amendments in Weld County. 13. Authority to Execute Agreement. Each Party represents that it has the full right and authority to enter into this Agreement with respect to the surface rights or oil and gas interests it owns in the Property, as applicable. 14. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the subsequent lessees and the personal representatives, heirs, successors and assigns of all of the Parties, and the benefits of this Agreement shall inure to all of them. 15. Recording. The Anadarko Entities shall record this Agreement with the Clerk and Recorder of Weld County and provide a recorded copy to the other Parties. 16. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado, without reference to its conflicts of laws provisions. 17. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. Page 6 of 12 18. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by: i) personal delivery; ii) expedited delivery service with proof of delivery; iii) registered or certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Anadarko E&P Anadarko E&P Company LP and Anadarko Land c/o Anadarko Petroleum Corporation and KMGG: 1099 18th Street, Suite 1800 Denver, Colorado 80202 Foundation: Foundation Energy Management, LLC 14800 Landmark Boulevard, Suite 220 Dallas, Texas 75254 Surface Owner The Wildlife Sanctuary do Pat Craig 1946 County Road 53 Keensburg, Colorado 80643 Any Party may, by written notice as provided in this section, change the address of the individual to whom delivery of notices shall be made thereafter. 19. Incorporation by Reference. Exhibits 1 and 2 are incorporated into this Agreement by this reference. 20. Entire Agreement. This Agreement sets forth the entire understanding among the Parties and supersedes any previous communications, representations or agreements, whether oral or written. No change of any of the terms or conditions herein shall be valid or binding on any Party unless in writing and signed by an authorized representative of each Party. 21. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the undersigned Parties have caused this Agreement to be executed by duly authorized representatives on the dates set forth in the acknowledgments, but to be effective on the date first above written. THE WILDLIFE SANCTUARY ANADARKO E&P COMPANY LP By: By: Name: Name: Its: Its: Page 7 of 12 FOUNDATION ENERGY ANADARKO LAND CORP. MANAGEMENT LLC By: By: Name: Name: Its: Its: ACKNOWLEDGMENTS STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by , as , for ANADARKO E&P COMPANY LP. Witness my hand and official seal. My Commission expires: Notary Public STATE OF ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by as , for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public Page 8 of 12 STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by as , for FOUNDATION ENERGY MANAGEMENT LLC. Witness my hand and official seal. My Commission expires: Notary Public STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2010, by , as , for THE WILDLIFE SANCTUARY. Witness my hand and official seal. My Commission expires: Notary Public Page 9 of 12 Exhibit 1 to Compatible Development Agreement effective , 2010 by and among Anadarko E&P Company LP,Anadarko Land Corp.,Foundation Energy Management LLC and The Wildlife Sanctuary Legal Description Township 1 North, Range 64 West Section 21: SW/4 Weld County, Colorado Page 10 of 12 Exhibit 2 to Compatible Development Agreement effective , 2010 by and among Anadarko E&P Company LP,Anadarko Land Corp., Foundation Energy Management LLC and The Wildlife Sanctuary See attached map consisting of one page. Page 11 of 12 pie iaot is b6 — Gm L/ From: Voelker.Andrew To: at Crain Subject: RE: Minerals Compatible Development Agreement Date: Friday,November 05,2010 3:51:46 PM Thanks Pat, I will take a look and get back with you shortly. Andrew J. Voelker Landman Anadarko Petroleum Corporation (303) 655-4322 (Office) (303) 710-1481 (Mobile) (303) 655-4380 (Fax) From: Pat Craig [mailto:Pat@wildlife-sanctuary.org] Sent: Friday, November 05, 2010 11:59 AM To: Voelker, Andrew Subject: RE: Minerals Compatible Development Agreement Hi Andrew, Thank you for getting this to me for review. I have highlighted a couple portions that I have concerns with and/or need to see the forthcoming exhibit to feel comfortable with... and have crossed out portions that we disagree with. Once you have reviewed my changes, feel free to contact me for further discussion, thanks. Pat Craig Executive Director • y t f� RV Compassion '! Fort Print... , M �' ` 1 it t7�t 11 y, ,..` G W u'a.\\'ikiAnintalSancluury.Org ANC, „rl SANCTUARY www.wildanimalsanctuarv.ore ,5javin&one animal may not change the world... but surely, for that one animal.. The world will change forever! From: Voelker, Andrew [mailto:Andrew.Voelker@anadarko.com] Sent: Thursday, November 04, 2010 3:01 PM To: Pat Craig Subject: RE: Minerals Compatible Development Agreement Hi Pat, I just wanted to follow-up after the hearing earlier this week to see if you had any comments on the Agreement I sent over? I see that we have just under 2 weeks before your final hearing and I am confidant we can work through any issues you see in the agreement before then. Thank you very much, «(10-29-2010) #1 Compatible Development Agrement Rocky Mountain Wildlife.doc» Andrew J. Voelker Landman Anadarko Petroleum Corporation (303) 655-4322 (Office) (303) 710-1481 (Mobile) (303) 655-4380 (Fax) From: Voelker,Andrew Sent: Monday, November 01,2010 11:12 AM To: Pat Craig Cc: '<jsauer@foundationenergy.com>'; 'Molly Buchanan' Subject: Minerals Compatible Development Agreement Pat, Attached is a first draft of a Compatible Development Agreement. Please feel free to make any comment in a red-lined Word version, or however you would feel comfort providing comments. Anadarko will have a representative at the hearing tomorrow to record our objection into the hearing record, and also to report that we are currently moving towards an agreement and hope to have it executed before your final hearing on the 17th. I am unable to attend personally as I will be working in WY for a couple days. I will try to get you a form of an Exhibit for the property by the end of the week, but wanted to try to get you the draft document before the hearing tomorrow. Please feel free to give me a call on my cell anytime if you would like to discuss. Thank you very much, « File: (10-29-2010) #1 Compatible Development Agrement Rocky Mountain Wildlife.doc >> Andrew J. Voelker Landman Anadarko Petroleum Corporation (303) 655-4322 (Office) (303) 710-1481 (Mobile) (303) 655-4380 (Fax) Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Pat Craig To: "Molly Buchanan" Cc: "Voelker Andrew' "Ballard Don"• "Larry Harvey" Subject: RE: Rocky Mountain Wildlife Conservation Center--Weld County USR for exotic animals Date: Monday,October 18,2010 3:34:00 PM HI Molly, Thank you for getting this Mineral document to me for my review... and for the record, I have not received anything from Andrew or Joel as yet concerning a possible oil and gas access agreement. We appreciate the concept of Anadarko and/or Foundation Energy being willing to relinquish the right to retrieve minerals via surface access —theoretically resolving any possible conflict with our wildlife habitats during the extraction of coal. However, the idea that Anadarko, or anyone else would expect our non-profit organization to pay $24,000 for right to protect our surface use, when the coal in question is nearly 800 feet underground, is questionable at best—and in my opinion —is more akin to extortion. As I discussed with Andrew and Joel, our Sanctuary development consists mostly of fencing- in large-acreage portions of the natural landscape that have existed here for decades — leaving them relatively untouched... so our USR does not represent typical development concerns associated with subdivision, industrial, or other uses that usually create access issues due to large amounts of construction, or the influx of multiple residential domiciles. The access to current oil and gas drilling envelopes was also discussed, and I had asked both gentlemen if Anadarko or Foundation Energy had a comprehensive drilling plan on file with the state, but did not receive a clear answer. As such, we do not have a full understanding of either company's plan to develop oil and gas interests in our area, and question the need for an agreement addressing anything outside of the state-defined drilling envelopes that are currently provided for. The contract that you provided which would release surface access rights to minerals also states that under such agreement, Anadarko Land and any lessee, licensee, successor or assign would then "...remove the minerals from the subject lands by subterranean entries, by means conducted on the surface of other lands or otherwise by any means or methods suitable to Anadarko Land... without entering upon or using the surface of the Subject Lands..."which clearly demonstrates that Anadarko and other companies have the ability to access the coal in question via underground mining techniques— rather than creating a giant open-pit strip mine in southern Weld County. At this point, I am very concerned with Anadarko and Foundation Energy's approach to working with us, especially since our USR amendment amounts to little more than adding more fencing around open space. With all the development that is going on in Colorado, it's hard to imagine either oil company has the time and resources to meet with every person or entity that has filed for a USR or other change of use (which at any given time probably amounts to thousands of cases)... so I'm, of course, very curious as to why there is so much interest in our case —as well as why our minimal use is of such great concern? Being a public non-profit entity, we are obviously not a giant corporation looking to build an industrial complex... or a rich developer looking to build a sprawling subdivision... or even a salt of the earth farmer who's heavily invested in this or next year's crop... so the idea of us needing to pay $24,000 to protect our entire surface access is disturbing—especially when you consider the extreme depth of the subject mineral (coal). At this point I think it would very helpful if either or both companies would follow state rules that require them to consult with us about the locations of wellsites and access roads... rather than dictate what we can or cannot do without paying for the right to protect our open space. /;://H- 0 Pat Craig Executive Director ,Nair rerr ! w • •� Compassion / VL P Y l-t vL t Ftibt Print... !4 � NN‘C cteti, tu hers; www.W ildA nimalS;uictuary.Or . SANCTUARY www.wildanimalsanrtuary.org javing one animal may not change the world... but sure/y, for that one animal... The world will change forever! From: Molly Buchanan [mailto:msb@msbuchananlaw.com] Sent: Monday, October 11, 2010 4:03 PM To: pat@wildlife-sanctuary.org Cc: Voelker, Andrew; Ballard, Don Subject: Rocky Mountain Wildlife Conservation Center--Weld County USR for exotic animals Pat This e-mail follows up your telephone conversation with Andrew Voelker regarding the Anadarko Land Corp. hard rock mineral interests for the property in Weld County described as the SW/4 of Section 21,Township 1 North, Range 64 West("Property")that is the subject of an application for a special use permit for the care of exotic animals. Attached please find the proposal for a relinquishment of surface rights for the hard rock mineral interests that Anadarko Land owns in the Property. I understand that you are working with Andrew and Joel Sauer with Foundation Energy Management LLC regarding a compatible development agreement for the Anadarko oil and gas interests. Thanks Pat Please let me know if you have any questions. Molly Molly Sommerville Buchanan MOLLY SOMMERVILLE BUCHANAN, P.C. 1580 Lincoln Street, Suite 700 Denver CO 80203 Phone: 303.825.0416 Fax: 303.825.3202 E-mail: msb@msbuchananlaw coral The information contained in this e-mail message is privileged, confidential and protected from disclosure. If you have received this e-mail in error, please advise me of the misdirected e-mail by sending me a message at msb( msbuchananlaw com. Also, please delete this e-mail from your system. Thank you. IRS CIRCULAR 230 DISCLOSURE: Pursuant to U.S. Treasury Regulations, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used or relied upon by you or any other person, for the purpose of(i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another person or legal entity any transactions or matter addressed herein. MOLLY SOMMERVILLE BUCHANAN. P.C. Molly S. Buchanan 1580 Lincoln Street, Suite 700 msb@msbuchananlaw.com Denver CO 80203 Telephone: 303.825.0418 Fax: 303.825.3202 October 12, 2010 Via E-Mail pat©wildlife-sanctuarv.org Pat Craig 1946 County Road 53 Keensburg,Colorado 80643 Re: Rocky Mountain Wildlife Conservation Center Township 1 North,Range 64 West Section 21 Weld County,Colorado Dear Pat: This letter is in response to the application that Rocky Mountain Wildlife Conservation Center ("Wildlife Center") filed with Weld County for the approval of an application for a site specific development plan and use by special review permit for the rescue and care of exotic animals, boarding, kennels, veterinary clinics and public education buildings for property in Weld County that includes portions of Section 21, Township 1 North,Range 64 West("Property"). This law firm represents Anadarko Land Corp. ("Anadarko Land") and Anadarko E&P Company LP with respect to the prospective surface development of the Property. The Anadarko Entities own the minerals that underlie the Property. This letter includes a proposal to resolve the potential conflicts between the development of the hard rock mineral interests owned by Anadarko Land and the prospective development of the surface estate for the Property. 1. The Oil and Gas Interests Owned by the Anadarko Entities: The Anadarko Entities own the oil and gas interests that underlie the Property. Anadarko or a predecessor or affiliate company granted an oil and gas lease for the Property, interests in which are currently owned by Foundation Energy Management LLC. I understand that you have met with Andrew Voelker with Anadarko and Joel Sauer with Foundation for a preliminary discussion about an agreement between the oil companies and the Wildlife Center for the compatible development of the surface and oil and gas estates. Pat Craig October 12,2010 Page 2 2. The Hard Rock Mineral Interests Owned by Anadarko Land: Anadarko Land owns the hard rock mineral interests that underlie the Property. As you may know, Anadarko Land typically enters into arrangements with surface developers for the disposition of its coal and hard rock minerals in cases where such mineral development will be precluded because of surface development. The disposition of the coal and other hard rock mineral interests can range from a mineral deed to a long term non-development lease to a relinquishment of surface rights. A representative for Anadarko Land has reviewed the Property for coal resource potential and determined that the Property is underlain with Laramie Formation coals in one or more seams that are approximately 16.3 feet thick at a depth beginning at approximately 756 feet. Laramie Formation coal typically has a high BTU of about 8900 to 9800 btu/lb and a low sulfur content of between .3 and .8 percent. The representative estimates that Section 31 may contain approximately 18.494 million tons of Laramie Formation coal. In light of the nature and extent of the coal resources that underlie the Property and in line with agreements that Anadarko Land has reached in the past with other surface owners, Anadarko Land would propose to provide the Wildlife Center with a relinquishment of surface rights for the hard rock mineral interests in exchange for a payment of $150.00 an acre (with a minimum transaction fee of $5,000.00). From a review of the map of the proposed surface development submitted by the Wildlife Center to the County, it appears that surface impact will occur within the 160 acres comprising the SW/4 of Section 21, and so the payment for the relinquishment document would be approximately$24,000.00. Enclosed is the form of relinquishment document that Anadarko Land generally provides to surface developers in similar circumstances. Also enclosed is the pertinent portion of the Colorado Coal Resources and Development Map which documents the coal resources that underlie the Property. The proposal included in this letter is subject to final management approval of Anadarko Land. Please let me know how you would like to proceed. Very truly yours, Molly Buchanan Enclosures cc: Don Ballard Andrew Voelker _r ., f , . • • Map Series 9 ' - ,Pocky r4.1 6-7/24 -i - w/ - • • #" /Nora etc:. 4.914, ff EXPLANATION . Se-1,11 Z • - - I- MUTE Ytfi LEST im Fl.. E( r - :. so Er. (is IL) 1a r,Qaa Fr(3aE IX cF �oa N - OF OIE {� -OMLE5S IRO ism- Vial .: l d COAL IIT�{..N3 THAN 3,003-M (910 IL) OF o.. .•i «.ugW _- ••. \tea• ARM OF PAST oa PRESQ(j COKING-COAL FROcuCTIOIF • • -pQt1(EIt REGION •COAL-BEARING REGION • • s • 42.47 ESuNATE' ORIGINAL 1RCES t2 as IN BILLIONS OF T TO 6:000 FT. (1820 [1.j. . ESTINATe INI Ik-P(ACE RCS 10:x,000 FT. (1920-n.), iN Illusions-it TIRIS, AS-OF 1/1/77 NIKES MDfR-DU 1917 FROOIICCIQ(I IN ION TOILS IN (IDR NINES TMT P'u •041 >0 1 NILLIOH' TONS N 19%) It wiDERGROUNO NIKE (UMW AS•OF NEMER 31, 1977) C3 WI(OONEO UNDERGROUND HIRE • ii SURFACE NIKE (LICERS0 AS OF OECEIUQI 31, 197T) _-=' 4A MAROONED SURFACE NINE I I It x z x : Ill } 226 1611‘. ' : .;ile-'l*' ' ' ,\ A ev<sw•• t? st F , v �9 ,„-* lwMap.a ` . k F v+ 11.ar4 j'^ SS. r —1.-- 0.eG ,I � ��?'Xt'J -1.34y J --St a x { t g d J AimI Wh+(7 n b k x4 4 atl t Y !nena es rr +as.Z'3'."9}KRi el It.A?,gi �1tss -e ;§r ,-x _ `t e tlatn 5,a, --a Pier{ .Sr. Will?" .e r � T 0. ' . eu - fi"rn 4 j keo } " t i ¢ It Win. 'a.: N i a ro A. t F. 57 /!0_i� ...S... 01 s r- �$ t fo aolli wa >, �t • b, awl &t. tore. 4 V 't.,y a ,]� "P''° la t. • • ' DI m , f ^ oar .J 1, `' .•ea ..... r • .T r1� � ' ___ {ey ,I , :‹A:,,,/.,04,,,� h * •`✓;). v. .,-.d',y7Hsy..... .. • k• '4 rye, '. n`WA 7,Hren r olrmaw 11_pas N M' — .. akilik f4M y '.„y. . rt a •r. _ Bert ' ma ----I nt •/10 aaty �+ r ,d Pen i L Mod.. / I J { ('� Q , -net, �` a �' / , I. ter; U.YI NM* ..fa.Me ' - Sy IIII A rf 4. .ii+ K ` z �Ji" at�. xM , ls.xp o — ai ..a M u .n ti . t ard,, ,z, met, wag tell - iW Suea.wa - qua} lilt ?tom+ a' FY. 4?a p { t .. � - aide gnola ea• '•SNM',° lf¢• . "1S.ir es a 't t 'i.421'JF Ye tar-, If rKtMt ,• a'N33 ps ek yv r� V, 3 i lai c r .Ae.,. . '4 It , '�' 4. e at nap, 47// / St t i d. ithiegi. t:: ✓%(I ter.,._ il? ,I .�4.t:i. .r .... st.111C _R.'�+�RaiitteVaaanane,:---- L`.•. _...aaflAhC4t'�Ft:Y:'s:.iF" __ I Se.uN � 466.'1° CI tiSkel pe Veera j9 •. ter• .. tat • ' • •c. •I .4 a• J e e7 ' t • e • &• Pat. .. -G • J� / I • _.• •_••:A• ✓•. / RELINQUISHMENT AND QUITCLAIM THIS RELINQUISHMENT AND QUITCLAIM effective this day of ,20_,by and between ANADARKO LAND CORP.,formerly known as Union Pacific Land Resources Corporation, with an address of Post Office Box 1330, Houston, Texas 77251-1330 (hereinafter "Anadarko Land"), and with an address of (hereinafter"GRANTEE"). WITNESSETH: RECITALS 1. The lands which are the subject of this Relinquishment and Quitclaim are the lands that are described on attached Exhibit A and are hereinafter referred to as the"Subject Lands." 2. By deed dated recorded on in the Office of the Clerk and Recorder of County in Book ,Page_,Union Pacific Company conveyed to certain real estate in County,Colorado, a portion of which are the Subject Lands. Said deed was made subject to the reservation by the grantor of,among other things,"(a)11 coal and other minerals within or underlying said lands." 3. By quitclaim deed dated recorded on in the Office of the Clerk and Recorder of County in Book Page Union Pacific Railroad Company quitclaimed to Union Pacific Land Resources Corporation,all of its right,title,and interest in and to certain real estate in County,Colorado,a portion of which was the Subject Lands. 4. This Relinquishment and Quitclaim relates to surface entry only for the minerals other than the oil, gas and associated liquid hydrocarbons that Anadarko Land owns in the Subject Lands. The minerals exclusive of oil,gas and associated liquid hydrocarbons are hereinafter referred to as"Minerals." 1 RELINQUISHMENT AND QUITCLAIM NOW THEREFORE,Anadarko Land for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration to it paid, the receipt of which is hereby acknowledged, has RELINQUISHED and forever QUITCLAIMED, and by these presents does RELINQUISH and forever QUITCLAIM unto GRANTEE,its grantees,successors and assigns,with respect to the Subject Lands only,the right to enter upon the surface of the Subject Lands to explore for and remove the Minerals by virtue of the reservation contained in the deed described in Recital 2,it being the intent hereof to relinquish only the right to enter upon the surface of the Subject Lands to explore for and remove the Minerals,and to leave in full force and effect all other rights reserved to Union Pacific Company in that deed, it being expressly understood that Anadarko Land's title to the Minerals shall be in no way affected and that Anadarko Land and any lessee, licensee,successor or assign of Anadarko Land shall have the right to remove the Minerals from the Subject Lands by subterranean entries, by means of operations conducted on the surface of other lands or otherwise by any means or methods suitable to Anadarko Land, its lessees, licensees, successors and assigns, but without entering upon or using the surface of the Subject Lands,and in such manner as not to damage the surface of the Subject Lands or to interfere with the use thereof by GRANTEE, its grantees, successors and assigns. This Relinquishment and Quitclaim is made subject to the specific understanding that all of the terms, conditions, provisions and reservations contained in the deed dated referenced in Recital 2 and not heretofore relinquished shall continue in full force and effect with respect to all lands conveyed thereby and not covered by this Relinquishment and Quitclaim,and it is further specifically understood that all the terms,conditions,provisions and reservations contained in that deed and not relinquished hereunder shall continue in full force and effect with respect to the Subject Lands. IN WITNESS WHEREOF, Anadarko Land has executed this Relinquishment and Quitclaim on the date set forth in the acknowledgment,to be effective on the date first written above. ANADARKO LAND CORP. By: Name: Its: 2 STATE OF TEXAS ) ) ss. County of Montgomery ) The foregoing instrument was acknowledged before me this day of 20_, by ,as for ANADARKO LAND CORP. My Commission expires: Witness my hand and official seal. Notary Public 3 EXHIBIT A to Relinquishment and Quitclaim effective 20_ between Anadarko Land Corp.and Legal Description Township .Range West Section : County,Colorado 4 From: Voelker.Andrew To: at Craig; msb(amsbuchananlaw.com;jsanef@afnundatinnenernv.roin Shawna Finkenbinder Subject: Wild Animal Sanctuary Special Use Permit Meeting Start: Wednesday,September 15,2010 10:00:00 AM End: Wednesday,September 15,2010 12:00:00 PM Location: Foundation Energy, 1801 Broadway,Ste 408,Denver,CO 80203 Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged,confidential or otherwise protected from disclosure.If you have received this communication in error,please immediately notify sender by return e-mail and destroy the communication.Any disclosure, copying,distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Voelker.Andrew To: Pat Craio Cc: msbCamsbuchananlaw.rom•lsanerafnundationenernv.conB Shawna Finkenbinder Subject: RE:Contact for Wild Animal Sanctuary Date: Wednesday,September 08,2010 6:52:41 AM Pat, 10:00 AM on the 15th should work. We will plan on meeting at Foundation's offices at 1801 Broadway Ste. 408. I look forward to meeting you next week. Thanks, Andrew J. Voelker Landman Anadarko Petroleum Corporation (303) 655-4322 (Office) (303) 710-1481 (Mobile) (303) 655-4380 (Fax) From: Pat Craig [mailto:pat@wildlife-sanctuary.org] Sent: Tuesday, September 07, 2010 4:14 PM To: Voelker, Andrew Cc: <msb@msbuchananlaw.com>; <jsauer@foundationenergy.com>; Shawna Finkenbinder Subject: Re: Contact for Wild Animal Sanctuary Hi Andrew, Thank you for contacting me... I apologize I'm stuck in a planning meeting. I am available to meet on the 15th, and would prefer an AM meeting, so would LOAM work for you? Pat Craig Executive Director The Wild Animal Sanctuary www.wildanimalsanctuary.org On Sep 7, 2010, at 4:07 PM, "Voelker, Andrew" <Aftdrew.VoelkerCalanadarko.com.> wrote: Pat, I apologize that we have missed each other via phone today. Anadarko is the mineral owner under your property in the SW/4 of Section 21 and Foundation Energy is our Lessee. Myself and Joel Sauer with Foundation would like to schedule a meeting with you next week to discuss the joint surface use of the property. Joel and I are available on Wednesday the 15th to meet at Foundation's offices at 1801 Broadway, Ste. 408, Denver, CO 80203. If you are available, please propose a time and we can plan on getting together then. Please feel free to give me a call as well to touch base when it is convenient. Thank you very much, Andrew J. Voelker Landman Anadarko Petroleum Corporation (303) 655-4322 (Office) (303) 710-1481 (Mobile) (303) 655-4380 (Fax) From: Pat Craig [mailto:Pat@wildlife-sanctuary.org] Sent: Tuesday, September 07, 2010 10:45 AM To: Voelker, Andrew Cc: rnsbemsbuchananlaw.corn Subject: Contact for Wild Animal Sanctuary Hi Andrew, Molly Buchanan said you would be contacting me about your mineral rights as related to our properties here in SE Weld County. We filled for an amendment to our USR, which your company filled a letter of opposition through Molly's firm. I would greatly appreciate being able to speak with you as soon as possible about this. I can be reached at the Sanctuary at 303-536-0118, or by cell phone at 303-748-8091. I look forward to hearing from you, Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Molly Buchanan To: Voe ker.Andrew Cc: patewildlife-canctuarv.orQ Subject: Rocky Mountain Wildlife Sanctuary/Weld County USR Permit Application Date: Tuesday,September 07,2010 1:38:34 PM Hi Andrew Pat Craig left me a message regarding the objection letter that Anadarko sent to Weld County with respect to the Rocky Mountain Wildlife Sanctuary in Weld County. I think you may have already tried to reach Pat. If not, please call him at (303)536-0118. I have copied Pat on this e-mail. Thanks Andrew Molly Molly Sommerville Buchanan MOLLY SOMMERVILLE BUCHANAN, P.C. 1580 Lincoln Street, Suite 700 Denver CO 80203 Phone: 303.825.0416 Fax: 303.825.3202 E-mail: rnsb@msbuchananlaw corn The information contained in this e-mail message is privileged, confidential and protected from disclosure. If you have received this e-mail in error, please advise me of the misdirected e-mail by sending me a message atmsb@msbuchananlaw.com. Also, please delete this e-mail from your system. Thank you. IRS CIRCULAR 230 DISCLOSURE: Pursuant to U.S. Treasury Regulations, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used or relied upon by you or any other person, for the purpose of(i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another person or legal entity any transactions or matter addressed herein. Hello