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Home My WebLink About20100323.tiff DEPARTMENT OF PLANN ING SERVICES 1555 N. 17th Avenue,Greeley,Colorado 80631 Phone (970) 353-6100,Ext. 3540 Fax (970) 304-6498 USE BY SPECIAL REVIEW (MINING OPERATION)APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT # /$ CASE#ASSIGNED: APPLICATION RECEIVED BY PLANNER ASSIGN ED: To be completed by APPLICANT is accordance with procedural guide requirements: 1. I (we),the undersigned, hereby request a hearing before the Weld County Planning Commission concerning a proposed gravel (gravel,coal, borrow pit,etc.) mining operation for the following described unincorporated area of Weld County: Legal Description See attached ,Section ,Township North, Range West Flood Plain: Zone A Zone District: A , Total Acreage: 381± ,Overlay District FP-1 Geological Hazard: N/A ,Airport Overlay District N/A 2. Surface owner(s)d area of land described Name: LaFarge West Inc. Address: See attached Phone: Name: Sally A.Parsons Address: See attached Phone: Name: Livingston Leigh Livestock of Weld County,LLC Address: See attached 3. Owner(s)of mineral rights or substance to be mined Name: Lafarge West Inc. Address: See attached Name: Sally A.Parsons Address: See attached Phone: Name:Livingston Leigh Livestock of Weld County,LLC Address: See attached Phone: Colorado State Board of Land Commissioners Address: See attached 4. Applicant's name: LaFarge West Inc.,do&rio Rotheatine- Email Address cric.ru.kCl.tinc@lofarge n?.com Address:ifte-Nr-T-aft-Htll-Ftd7rforHilelliner 90-00621- y Phone:979.1673620 3->:,-/,53-yloI 11409 3 ,s,nc�y4Pc4t (Aluit Str .eo0rjct'*m.p.krC0 806o9 5. Identify any prior permits for mining held by appicant or affiliated person: None for this property I (We) request that the folbwing described property be designated a Recorded Exemption by the Weld County Board of County Commissioners. 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 appicatbn. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the appicatbn.If a corporation is the fee owner, notarized ev; included showing the signatory has to legal authority to sign for the corporation. If elf Si name: Owner or Authorized Age ate Signature: Owner or Authorized Agent Date EXHIBIT I z 15 use.IbS, 2010-0323 rI VECCHI &ASSOCIATES, LLC URBAN PLANNING & DESIGN P O.Box 1 75 Longmont,CO 80502-1175 Phone 303-774-0173 Fax 303-774-0173 VecchiAssociates@comcast.net February 7, 2008 Mr. Kim Ogle Weld County Planning 918 10`h Street Greeley, CO 80631 RE: Initial Submittal for PARSONS MINE Use by Special Review Application Dear Kim: Attached please find four copies of the PARSONS MINE Use by Special Review Application for your initial review. The applicant for this application is Lafarge West, Inc. and their primary contact is Eric Reckentine at 303-885-5594. I will be the primary Consultant contact for processing of the permit application and Pam Flora of TTRMC is available if you are unable to reach me and need immediate assistance. For your convenience, our contact information is listed below. Jennifer E. Vecchi, AICP Pamela Franch Hora, AICP Vecchi &Associates, LLC Tetra Tech P.O. Box 1175 1900 S. Sunset Street, Suite IF Longmont, CO 80502-1175 Longmont, CO 80501 Phone and Fax: 303-774-0173 Phone: 303-772-5282 Email: vecchiassociates@comcast.net Fax: 303-772-7039 Email: pam.hora@tetratech.com Thank you for your consideration. We look forward to hearing from you and working with you on this application. Sincerely, VEC . I&ASSOCIATES, LLC e , ifer E. Vep hi, AICP ncipal Attachments v&alafargeparsonsusrcorrespondence TABLE OF CONTENTS APPLICATION FORM SPECIAL REVIEW QUESTIONNAIRE WELD COUNTY ACCESS INFORMATION SHEET EVIDENCE OF ADEQUATE WATER SUPPLY EVIDENCE OF ADEQUATE SEWAGE DISPOSAL DEEDS AND LEASE AGREEMENTS CERTIFICATE OF CONVEYANCES NOISE IMPACTS AIR QUALITY SOILS REPORT TRAFFIC STUDY LEGAL RIGHT TO ENTER AND MINE OIL AND GAS AGREEMENTS DITCH/IRRIGATION AGREEMENT SURFACE OWNERS WITHIN 500' MINERAL OWNERS AND LESSEES TEMPORARY SUBSTITUTE WATER SUPPLY PLAN HISTORICAL AND ARCHAEOLOGICAL RECORDS SPECIAL REVIEW PLAN SET (11" x 17" and 24" x 36") SHEET I COVER SHEET SHEET 2 EXISTING CONDITIONS PLAN SHEET 3 OVERALL EXTRACTION PLAN (I"=300') SHEET 4 EXTRACTION PLAN (NORTH HALF) (I"=200') SHEET 5 EXTRACTION PLAN (SOUTH HALF) (1"=200') SHEET 6 EXTRACTION PLAN DETAIL SHEET SHEET 7 OVERALL RECLAMATION PLAN (1"=300') SHEET 8 RECLAMATION PLAN (NORTH HALF) (1"=200') SHEET 9 RECLAMATION PLAN (SOUTH HALF) (I"=200') SHEET 10 RECLAMATION PLAN DETAIL SHEET SHEET 11 PLANT SITE DETAIL Parsons Mine Weld County Special Review Application Application Form Attachment Legal Description: E '/2 of the SE 'A of Section 25, T6N, R67W W '/2 of the SW '/4 of Section 30, T6N, R66W NW '/4 of Section 31, T6N, R66W NE '/4 of Section 36, T6N, R67W 2. Surface owner(s) of area of land described: Name: Lafarge West Inc. Address: 10170 Church Ranch Way, Ste 200, Westminster, CO 80021 Phone: 970-407-3620 Name: Sally A. Parsons Address: P.O. Box 336665, Greeley, CO 80633-0612 Phone: 970-351-8817 Name: Livingston Leigh Livestock of Weld County, LLC Address: 4124 Spring Canyon Ct, Ft. Collins, CO 80525 Phone: 970-223-4501 3. Owner(s) of mineral rights or substance to be mined: Name: Lafarge West Inc. Address: 10170 Church Ranch Way, Ste 200, Westminster, CO 80021 Phone: 970-407-3620 Name: Sally A. Parsons Address: P.O. Box 336665, Greeley, CO 80633-0612 Phone: 970-351-8817 Name: Livingston Leigh Livestock of Weld County, LLC Address: 4124 Spring Canyon Ct, Ft. Collins, CO 80525 Phone: 970-223-4501 Name: Colorado State Board of Land Commissioners Address: 1313 Sherman St, Room 620, Denver, CO 80203 Phone: 303-866-3454 January 30, 2008 Mr. Kim Ogle Weld County Planning Department 918 10th Street Greeley,CO 80631 RE: Lafarge's Parsons Mine Use by Special Review Application Dear Kim: 1, Sally A. Parsons, am an owner of a portion of the Parsons Mine property. This letter is to authorize Eric Reckentine with Lafarge \Vest Inc. to be my Authorized Agent for the Parsons Mine Use by Special Review Application being submitted to Weld County. Sincerely, • >zkeiz.67 Sally A. Parsons Authorization for Fee Owner for: Livingston Leigh Livestock of Weld County, LLC Attached please find documentation showing that Lafarge West, Inc. has received permission from Thomas Livingston, Manager for Livingston Leigh Livestock of Weld County, LLC, to make decisions related to the permitting of mining on the Livingston Leigh Livestock of Weld County property. The documentation is a copy of the applicable pages from the Gravel Property Lease between Lafarge West, Inc. and Livingston Leigh Livestock of Weld County, LLC (a complete copy of the lease can be found in the Deeds and Lease Agreements Section of this application package). In addition, attached is a Certificate of Good Standing for Livingston Leigh Livestock of Weld County, LLC as well as evidence from the Secretary of State's records showing that Thomas Livingston is the Manager for Livingston Leigh Livestock of Weld County, LLC. GRAVEL PROPERTY LEASE THIS INDENTURE, dated this 9 3 day of l _ e , 20 D'j(hereinafter referred to as the "Lease"), by and between Livingston Leigh Livestock of Weld County, LLC, A Colorado Limited Liability Company whose address is 4124 Spring Canyon Ct., Fort Collins, CO 80525 (hereinafter referred to as "Lessor," whether one or more) and LAFARGE WEST, INC., a Delaware corporation (hereinafter referred to as the "Company"), with its address at 1800 North Taft Hill Road, Fort Collins, CO 80521, Attention: Front Range Aggregates Land Manager. WITNESSET.11 In consideration of the sum of paid by the Company to or on behalf of Lessor, the receipt of which is hereby acknowledged by Lessor, and on and subject to the terms and conditions provided in this Lease, Lessor hereby leases, lets and demises to the Company the Materials as defined herein, in, on and under the real property situate in Weld County, Colorado, and described in Exhibit A attached hereto and made a part of this Lease (hereinafter referred to as the "Property"), and the exclusive right to sample, drill, and test for, develop, mine, quarry, extract, process, sell, use and remove them during the Term of this Lease, along with the right to locate and use easements as defined herein. 1. Definitions. A. Effective Date shall mean the date first set forth above in the initial paragraph of this Lease. B. Lease Year shall mean a period of one year beginning on the Effective Date, or on any annual anniversary thereof. C. Materials shall mean stone, sand and gravel and any overburden and valuable solid minerals, other than hydrocarbon minerals such as coal, oil, gas and associated liquid hydrocarbons, that are removed incident to sand and gravel operations hereunder and which are saleable and recoverable from the Property in the course of such operations. D. Net Sale Ton shall mean 2000 pounds of Materials from the Property actually sold or used in products that are sold, measured or weighed after any processing of such Materials. Processing of Material from the Property, including washing of sand and gravel, removes approximately ten to fifteen percent of the total Materials mined from the Property, which Materials are not salable and not subject to payment of Production Royalty. If the Company weighs or measures Materials from the Property before processing (such as, but not limited to, weighing on a conveyor belt scale as it leaves the Property), the Company and Lessor shall agree upon a formula that reasonably reflects the loss of Materials in processing being experienced by the Company in the vicinity of the Property for purposes of calculating the Net Sale Tons for Production Royalty purposes. block access, stockpile materials on or conduct mining operations on (1) the areas where the residences and other building are located on the Property, (2) the west Property boundary area where the trees, fence, cattle trail and irrigation lateral are located, and (3) the north Property boundary area where the Whitney Ditch iq�,,s��c� to . The Company will not remove the southern fence without written permission from the's`w"ner he Company shall conduct all mining related operations within the State, County and Federal permit limits for the Property. B. The Company shall have the right to construct, maintain, and use roads, pipe lines, power lines, telephone lines, and stockpile areas and any right-of-way it deems necessary or desirable for its operations on the Property related to the Company's operations under this Lease. The Company shall have the right during the Term of this Lease and without payment to Lessor (except for Production Royalties payable pursuant to Paragraph 3 and Advance Minimum Royalties payable pursuant to Paragraph 4) to strip and remove overburden and otherwise to use and occupy the Property as is reasonably required in connection with mining, quarrying, extracting, processing, storage, transportation, sale and removal of Materials from the Property on which the Company is conducting operations. C. The Company shall consult with Lessor with respect to all permit applications, plans and designs of the Company; provided, however, that all final decisions on mine plans, operations, reclamation, permits and other plans of operations shall be in the Company's sole discretion and control. D. Lessor authorizes the Company on Lessor's behalf and agrees to cooperate with the Company at no additional costs to the Lessor to apply for and obtain zoning or other governmental land use classifications, permits, approvals, licenses, and rights (hereinafter "authority") that are reasonably required in connection with the operations that are contemplated under this Lease; provided, however, the Company shall provide bonds or other financial assurance for its operations, including for the restoration, reclamation or rehabilitation of the Property, as may be required or advisable to obtain such permits and approvals. 8. Conveyer Easement. In addition to the other rights granted under this Lease, Lessor hereby grants to the Company an easement for the term of the Lease to erect, operate, maintain, repair and relocate a conveyor system on, over and across the Property for the purpose of conveying Materials across the Property to the Company's processing plant on the Etters Property from any pit on the Property. Such easement shall include the right of vehicular access for construction, installation, repair, operation, relocation and removal of the conveyor system. 9. Waiver of Lateral Support. With the exception of(a) the west Property boundary area where the trees, fence, cattle trail and irrigation lateral are located, (b) the north Property boundary where the Whitney Ditch is located, and (3) the areas of the Property where residences are located, Lessor hereby waives the lateral support for mining purposes for the lands located between the Property's boundary lines and the boundary lines for those adjacent properties that are owned or leased by the Company, including but not limited to the Etters Property. - 5 - IN WITNESS WHEREOF, this Gravel Property Lease with Option to Purchase Surface has been duly executed as of the date first above written. THE COMPANY LESSOR: LAFARGE WEST, INC. LIVINGSTON LEIGH LIVESTOCK OF a Delaware Corporation WELD COUNTY, LLC, a Colorado Limited Liability Company By: ii.,- C X By: ^��--'- _ ;�,e — Tomas Livingsto _(Title) Title STATE OF COLORADO ) ss. COUNTY O`F j k_ A-7 ) th The foregoing instrument was acknowledged before me this day of f' .`\ `_ ,2004 by Thomas Livingston as M N-PC of Livingston Leigh Livestock of Weld County,LLC, a Colorado limited liabili ..W ompany. STATE OF COLORADO ) • • ss. ' COUNTY OF c •' ilk.08 �t•;POD The foregoing instrument was acknowledged before . • ay of kri I , 2004 by .emmlu ue l oli puy -, as NU'P Aff tlb tf" t w"F"""'""2086f Lafarge West, Inc., a Delaware corporation. Witness my hand and official seal. My commission expires: )rJAjl_aLZA�S.E•A L] 19)4 t tikiki) •'� C, Notary Public t,. I LW o-TAR ' t A--C)'-.-QJ 1)1 ks, - 12 - OFFICE OF THE SECRETARY OF STATE OF THE STATE OF COLORADO CERTIFICATE I, Mike Coffman, as the Secretary of State of the State of Colorado, hereby certify that, according to the records of this office, LIVINGSTON LEIGH LIVESTOCK OF WELD COUNTY,LLC is a Limited Liability Company formed or registered on 06/02/1999 under the law of Colorado, has complied with all applicable requirements of this office, and is in good standing with this office. This entity has been assigned entity identification number 19991104073 This certificate reflects facts established or disclosed by documents delivered to this office on paper through 01/03/2008 that have been posted, and by documents delivered to this office electronically through 01/08/2008 @ 15:58:34 • I have affixed hereto the Great Seal of the State of Colorado and duly generated, executed, authenticated, issued, delivered and communicated this official certificate at Denver, Colorado on 01/08/2008 @ 15:58:34 pursuant to and in accordance with applicable law. This certificate is assigned Confirmation Number 6973747 • w.of c,Ol n - Phi, afro, -it A (44-4, A z / 876 Secretary of State of the State of Colorado ****************************************End of Certificate**************************************** Notice:A certificate issued electronically from the Colorado Secretary of State's Web site is fully and immediately valid and effective. However, as an option,the issuance and validity of a certificate obtained electronically may be established by visiting the Certificate Confirmation Page of the Secretary of State's Web site, http://www.sos.state.co.us/bi✓CertifcateSearchCriteria.do entering the certificate's confirmation number displayed on the certificate, and following the instructions displayed Confirming the issuance of a certificate is merely optional and is not necessary to the valid and effective issuance of a certificate. For more information,visit our Web site, http://www.sos.state.co.ts/click Business Center and select"Frequently Asked Questions." CERT_GS_D Revised 01/02/2007 cop ARAlle m:n rpr•��, t(' ," 1' ARTICLES OF ORGANIZATION OF LIVINGSTON LEIGH LIVESTOCK OF WELD COUNTY, LLC I, the undersigned natural person, of the age of 18 years or more, acting as organizer of the limited liability company under the Colorado Limited Liability Company Act, adopt the following Articles of Organization for such limited liability company: 1 . Name and Principal Place of Business. The name of the limited liability company is LIVINGSTON LEIGH LIVESTOCK OF WELD ' COUNTY, LLC (the "Company") , and its principal place of business is 4124 Spring Canyon Court, Fort Collins, Colorado 80525. 2. Duration. The period of duration of the Company is perpetual, unless sooner dissolved by the members or as provided by statute. 3. Purpose. 19991104073 H 50.00 The Company is organized primarily tossNorAppcFippnve, develop and sell real estate, and, secondarily, fex_ nyopth“. gfi1 and lawful purpose pursuant to the Colorado Limite iabili y' ct. 4 . Registered Agent and Business Address. The name and business address of the registered agent for service of process is: Russell B. Sanford 125 South Howes Street, Suite 1100 P.O. Box 608 Fort Collins, CO 80522-0608 5. Management. The management of the Company is vested in managers rather than members and the name and business address of the initial manager is: Thomas Livingston 4124 Spring Canyon Court Fort Collins, CO 80525 6. Indemnification. The members and manager of the Company shall be entitled to indemnification from the Company in all matters and for all amounts in which indemnification is permitted under the Colorado Limited Liability Act set forth in Title 7, Article 80, of the Colorado Revised Statutes, or any amendment thereto. 7. Organizer. The name and address of the organizer is: Russell B. Sanford 125 South Howes Street, Suite 1100 P.O. Box 608 Fort Collins, CO 80522-0608 1 �� 8 . Rights of Members to Contract With Company. Any of the Members of the Company shall not, in the absence of fraud, be disqualified from his office from dealing or contracting with the Company, either as vendor, purchaser or otherwise, nor shall any firm, association, or corporation of which he shall be a member, or in which he may be pecuniarily interested in any manner be so disqualified. No director or officer, nor any firm, association or corporation with which he is connected as aforesaid shall be liable to account to the Company or its Members for any profit realized by him from or through any such transaction or contract, it being the express purpose and intent of this Article to permit the Company to buy from, sell to, or otherwise deal with partnerships, firms or corporations of which the Members and Manager of the Company, or any one or more of them, may be members, directors, or officers, or in which they or any of them may have pecuniary interests; and the contracts of the Company, in the absence of fraud, shall not be void or voidable or affected in any manner by reason of any such position. Furthermore, Members of the Company may be counted for a quorum at a meeting even though they may be pecuniarily interested in matters considered at such meeting, and any action taken at such a meeting with reference to such matters by a majority of the disinterested Members shall not be void or voidable by the Company in the absence of fraud. Dated this ! = day of June, 1999. f Russell ord STATE OF COLORADO ) ss. COUNTY OF LARIMER I, Russell B. Sanford, being first duly sworn upon my oath, depose and state that I am the organizer of Livingston Leigh Livestock of Weld County, LLC; that I have read the foregoing Articles of Organization of said limited liability company; and that the statements contained in such Articles of Organization are true and correct and constitute my free and voluntary acts. Russ61.1-B. Sanford Subscribed and sworn to before me this AS/ day;rof June, 1999, by Russell B. Sanford. el Witness my hand and official seal. _ : n (, My commission expires: f Notary Public 2 CONSENT TO APPOINTMENT OF REGISTERED AGENT The undersigned, as the initial registered agent of Livingston Leigh Livestock of Weld County, LLC, hereby consents to being appointed as said agent. Effective Date: Li91,02e ( , 1999. Lam. Rus$ 1 B. -San ord, Registered Agent L.-- 3 OFFICE OF THE SECRETARY OF STATE OF THE STATE OF COLORADO CERTIFICATE I, Mike Coffman, as the Secretary of State of the State of Colorado, hereby certify that, according to the records of this office, LAFARGE WEST, INC. is an entity formed or registered under the law of Delaware has complied with all applicable requirements of this office, and is in good standing with this office. This entity has been assigned entity identification number 19871698812 This certificate reflects facts established or disclosed by documents delivered to this office on paper through 01/03/2008 that have been posted, and by documents delivered to this office electronically through 01/08/2008 @ 15:59:48 • I have affixed hereto the Great Seal of the State of Colorado and duly generated, executed, authenticated, issued, delivered and communicated this official certificate at Denver, Colorado on 01/08/2008 @ 15:59:48 pursuant to and in accordance with applicable law. This certificate is assigned Confirmation Number 6973749 EQ'' = = - :.Tel gsk 1876 Secretary of State of the State of Colorado *********************************************End of Certificate*******************************s********fir** Notice:A certificate issued electronically from the Colorado Secretary of State's Web site is fully and immediately valid and effective. However, as an option,the issuance and validity of a certificate obtained electronically may be established by visiting the Certificate Confirmation Page of the Secretary of State's Web site, http://wxw.sos.state.co.us/biz/CertificateSearchCriteria.do entering the certificate's confirmation number displayed on the certificate, and following the instructions displayed Confirming the issuance of a certificate is merely optional and is not necessary to the valid and effective issuance of a certificate. For more information,visit our Web site, http://www.sos.state.co.us/click Business Center and select"Frequently Asked Questions." CERT_GS_F Revised 01/02/2007 SPECIAL REVIEW QUESTIONNAIRE 1. A detailed description of the method of mining operation. The Parsons Mine site is located east of Windsor just south of County Road 64'1 and on both sides of County Road 25. This 381± acre site is comprised of six parcels owned, leased, or under contract for purchase by Lafarge. The other two land owners are Sally A. Parsons and Livingston Leigh Livestock of Weld County, LLC. A reclaimed gravel mine lies southeast of the site, an active gravel mine is to the east and rural residential/agricultural land uses surround the property on all other sides. The typical mining procedure for all phases will be as follows. Any areas slated for protection will be identified in the field to assure that mining operations will be set back as appropriate. Initially, the topsoil and overburden will be stripped with scrapers and stockpiled in designated stockpile areas. Overburden will also be used to construct berms and as fill in the reclamation slopes. Following stripping of the overburden, the deposit will be dry mined through the use of dewatering trenches and pumps. Overburden and topsoil stockpiles will be drilled and seeded as appropriate to prevent erosion. Prior to the mining of new cells, a dewatering trench will be constructed around portions of the perimeters. A sump hole will be created at the lowest point of the dewatering trenches. The sump holes and dewatering trenches will allow sediment to settle before the water is pumped to the Cache La Poudre River using a groundwater discharge pump in accordance with Colorado/NPDES discharge permit regulations. If agreements are obtained, water may also be discharged in the Whitney Ditch. Pipes transporting the water from the mine will discharge the dewatering water directly into the Cache La Poudre River or identified waterway. Pipes will be slotted along areas with a high density of cottonwood trees to minimize impacts of dewatering and preserve mature vegetation. Water may also be pumped into adjoining cells. When the alluvium is sufficiently dry, front-end loaders will excavate the material and deposit it on conveyors. The mining face will be nearly vertical to 1/2:1 slope. The conveyors will transport the material to be processed at the Plant Site area, located in Phase 1A. The Plant Site area contains the crushing, screening and washing equipment used for the processing of the raw materials. The processed materials will be stockpiled for delivery to off- site concrete and asphalt plants or for commercial and government projects. The Plant Site area will be the last phase mined. A site plan for the plant site is included in the Special Review Plan set. Berming and vegetation will be used to screen the plant site from view from County Road 64'1, County Road 25 and existing adjacent residences. a. The types and numbers of structures that will be erected on site including operation and processing equipment to be employed. An aggregate processing plant will be located on the northeast corner of the Parsons Mine Site. Temporary structures will be erected at the plant site to process the aggregate (there will be no concrete or asphalt processing conducted on the Parsons Mine site). The Parsons Mine Weld County Special Review Application Page I ol9 temporary structures that will be at the plant site are an office trailer, two portable toilets, a crushing plant, a washing plant, and conveyor belts. b. The number of shifts to be worked and the maximum number of employees. There will be a maximum of two shifts and up to 10 employees on site at any one time. c. Whether the operation will involve a wet or dry pit. Parsons Mine will be a dry pit. d. County roads and bridges to be utilized, along with site entrance/exit points. There will be one entrance point and one exit point off of Weld County Road 64'1. Both of these points are shown on the Weld County Access Information Sheet and on the Special Review Plan set maps. e. The size of the area and stages to be worked at any one time. See response to 'g' below. f. A time table giving the periods of time and number of phases to be worked, which will be required for the various phases of the operation. See response to 'g' below. g. The depth and thickness of the mineral deposit to be mined and the thickness of overburden to be removed. The Parsons Mine will process up to approximately 1,000,000 tons of aggregate per year and mine approximately 30-40 acres per year. At this rate, Lafarge anticipates mining and reclaiming the Site in 20 years; however, the rate of mining and overall life of the mine is dependent upon demand and market conditions. The mine phases and associated mine cells are depicted on the Mine Plan. Mining in phases will limit the area of disturbance at any one time. The phases depicted on the Mine Plan are used to indicate the order of mining. These phases are neither representative of the maximum area of disturbance nor do they limit disturbance to a particular phase. Generally, Lafarge believes the mine will progress according to the following time table: Parsons Mine Weld County Special Review Application Page 2 of 9 Life of Mine By Phase x SI7 s '. 3�� n$s 3'�!Fy 3 , , �t ' * �a '4 .:;;r. i E e tdga�` r /¢tae I 18 9 37.5 Duration of the Mine' I'hase 1B 10 5 39.1 Duration of the Mine' I'hase 2A 15 8 36.9 6± Phase 2B 5 2 7.5 2± 8 6 6.6 1± Phase 4A 8 4 7.9 1t Phase 4B 9 5 13.7 2± Phase 4C 7 5 34.1 4± I 10 3 3.7 1+ Phase 5B 10 3 10.6 2± I 6 3 4.8 1± OTALS 9.6 4.8 202.4 20± h. The proposed use of reclaimed lands and an explanation of the reclamation process. This site will be mined and reclaimed to create a diverse, stable and sustainable environment. There are significant opportunities to enhance wildlife habitat and the natural aesthetics of the Cache La Poudre River riparian corridor. The reclamation plan is designed to accommodate these opportunities. Existing riparian vegetation and wetlands have been identified and will be monitored and protected throughout mining and reclamation. Mining activities will be set back an appropriate distance from all areas designated for preservation. A combination of open water ponds, wetlands and upland pastures will be created through the mining and reclamation process. Creative use of materials generated by mining and processing operations will enhance and compliment the existing riparian corridor. Silts will be used to form diverse silt basin wetlands. Excess overburden will be used to vary the shape and slopes of the finished unlined ponds. Native and adaptive plantings and ground covers will be used to restore and enhance all areas disturbed by mining activities. The reclamation plan for the Parsons Mine was developed based on: • A thorough evaluation of the environmental resources and existing conditions on and adjacent to the property; • The context of the property relative to existing and planned land uses in the area; Phases IA and 1B are projected to be active for the duration of the mine because the overburden in these phases will be stripped starting in the first year of the mining operation and then the plant site(crushing and washing facilities)will be constructed in this area. Therefore, the sand and gravel in Phases I A and 1B won't be mined until the end of the mining operation. Parsons Mine Weld County Special Review Application Page 3 of 9 • The volume, depth and configuration of the mineral resource; • The landowners' plans for the property; and • The rules and policies of Weld County, the Colorado Division of Minerals and Geology and other applicable local, State and Federal agencies. In particular, the Reclamation Plan was developed with the guidance and assistance of Mr. Larry Rogstad, District Wildlife Manager for Greeley North, Colorado Division of Wildlife and reviewed by Mr. Peter Plage of the U.S. Fish and Wildlife Service. Key considerations for the Reclamation Plan include the following: • The Cache La Poudre riparian corridor passes through the property. In addition, all wetlands on the site have been located and are identified on the Existing Conditions sheet (page 2) of the Special Review Plan set. All efforts will be made to preserve and enhance the resources. • There is an existing bald eagle nest on an adjacent reclaimed gravel mine located south and east of the site. There are also raptor nests located on site along the Cache la Poudre River. • The sequence and timing of mining and reclamation activities will be managed to limit impacts to the eagles and other raptors, during the nesting season. • There is an opportunity to enhance wildlife habitat through the creation of a combination of open water ponds, silt basin wetlands, river corridor enhancement and shoreline plantings. • Silts generated by the mining process will be utilized to create diverse wetlands and add diversity to the habitat along this portion of the river corridor. • There are existing and planned oil and gas facilities on the site. Mining and reclamation activities will be managed to allow for continued operation and development of mineral resources. New drilling activities will be encouraged to utilize existing, disturbed areas at the maximum extent possible. • There is significant overburden on this site. Excess material will be used as much as possible to create wetland benches adjacent to the river corridor, vary the slope and configuration of the open water ponds, create shorelines that are more irregular and limit the surface area of the ponds to minimize evaporative losses from the groundwater. • Groundwater monitoring wells will be installed to establish pre-mining baseline water levels. Groundwater levels in the area of existing vegetation will be monitored. If levels drop below seasonal levels, dewatering water will be diverted to the areas to sustain existing vegetation to limit impacts during mining. The post-mining land use, as proposed in this Reclamation Plan, consists of wetlands, enhanced riparian vegetation, unlined ponds and reclaimed upland areas. All disturbed areas will be vegetated as appropriate with a native seed mix, as recommended by the Soil Conservation Service. These uses are compatible with the surrounding land uses and with the Weld County Comprehensive Plan Goals and Policies. Lafarge will concurrently reclaim mine walls where mining has been completed according to the phases outlined in the Mine Plan. Reclamation, including re-grading and seeding, will be completed within two to five years following the completion of mining or filling Parsons Mine Weld County Special Review Application Page 4 of 9 operations for each phase. The mining and reclamation will leave no high walls on the property. No acid forming or toxic materials will be used or encountered in the mining. There will be no auger holes, adits, or shafts left on the site. t The source of technical advice in that type of reclamation for open cut mining land. Technical advice for the Reclamation Plan was provided by Deere and Ault Consultants, Inc; Resource Conservation Partners, LLC; Queen of the River Consultants; EnviroGroup Limited; the Division of Wildlife and the U.S. Fish and Wildlife Service. 2. A statement which explains how the proposal is consistent with the Weld County Comprehensive Plan. This application is consistent with the Weld County Comprehensive Plan. The mining operation will promote the goals and policies of Section 22-5-80, "Commercial and Mineral Resource Deposits Goals and Policies". Following is a listing of the goals of this section followed by an explanation of how the application is consistent with that goal and its associated policies. CM. Goal 1: Conserve lands which provide valuable natural mineral deposits for potential future use in accordance with state law. According to the map titled Distribution and Quality of Potential Sources of Aggregate Infrastructure Resources Project Area, Colorado and Wyoming by William H. Langer, Gregory N. Green, Daniel H. Knepper, Jr., David A. Lindsey, David W. Moore, L. David Nealey and John C. Reed, Jr. (USGS Open-File Report 97-477; 1997), the Parsons Mine is located in "Areas where deposits are likely to contain sand and gravel with properties that will meet most uses". CM. Goal 2: Promote the reasonable and orderly development of mineral resources. Lafarge is committed to operating a responsible and orderly mining facility and recognizes the fact that the mine will be subject to Development Standards which will be defined as part of this Use by Special Review permit process. • CM. Goal 3: Minimize the impacts of surface mining activities on surrounding land uses, roads and highways. A small portion of the Parsons Mine site is located within Windsor's Community Influence Area which means that the County will refer this application to Windsor for their comments. Lafarge will minimize the visual and noise impacts of the mining operation with the use of berms and landscaping, especially around the plant site area. A detailed description of all the air quality and noise mitigation techniques to be used can be found in the Air Quality and Noise Impacts sections of this application package. A traffic study has been prepared and submitted for the Parsons Mine to define appropriate County road improvements that will be needed as a result of this mining operation and Lafarge will enter into a road maintenance agreement with the County. CM. Goal 4: Minimize hazardous conditions related to mining activities and the mining site. Lafarge will construct and landscape berms to screen the plant site area from public view. In addition, Lafarge will maintain adequate setbacks from adjacent properties and roadways as well as screen mining operations with the use of stockpiles or berms. A traffic study was completed to ensure that the access points to the site are located and designed with safety in mind and to minimize impacts on adjacent property owners. In addition, conveyors will be utilized to transport material to the processing area, thereby eliminating potential impacts to Parsons Mine Weld County Special Review Application Page 5 of 9 adjacent properties from internal haul road traffic. The property will be signed and lit to warn and protect people from the mine site hazards and the active mining areas will be fenced. Finally, Lafarge will comply with federal, state and local environmental and safety regulations in addition to implementing Lafarge's own safety protocols. • CM. Goal 5: Provide for timely reclamation and reuse of mining sites in accordance with this Chapter and Chapters 23 and 24 of this Code. This site will be reclaimed into unlined groundwater-fed ponds as well as silt basin wetland and upland areas, uses which are consistent with the County Regulations. • CM.Goal 6: The extraction of mineral resources should conserve the land and minimize the impact on surrounding land. As explained above, Lafarge will take steps to minimize impacts on the surrounding land. In addition, the mining and reclamation operation is designed to preserve and enhance sensitive habitat on the site as well as adjacent properties. 3. A statement which explains how the proposal is consistent with the intent of the district in which the use is located. Parsons Mine site is located in the Agricultural Zone District and open pit mining is a use by special review in this district. 4. If applicable, a statement which explains what efforts have been made, in the location decision for the proposed use, to conserve productive agricultural land in the agricultural zone district. Not applicable 5. A statement which explains there is adequate provision for the protection of the health, safety and welfare of the inhabitants of the neighborhood and the County. Lafarge will construct and landscape berms to screen the plant site area from public view. In addition, Lafarge will maintain adequate setbacks from adjacent properties and roadways as well as screen mining operations with the use of stockpiles or berms. A traffic study was completed to ensure that the access points to the site are located and designed with safety in mind and to minimize impacts on adjacent property owners. In addition, conveyors will be utilized to transport material to the processing area, thereby eliminating potential impacts to adjacent properties from internal haul road traffic. The property will be signed and lit to warn and protect people from the mine site hazards and the active mining areas will be fenced. Finally, Lafarge will comply with federal, state and local environmental and safety regulations in addition to implementing Lafarge's own safety protocols. 6. A statement describing the existing surrounding land uses and explaining how the proposal will be compatible. A reclaimed gravel mine is located to the southeast of the Parsons Mine and an active gravel operation is located to the east. Agricultural and rural residential are the other land uses which surround the property. As explained above, Lafarge will minimize the visual and noise impacts of the mining operation through the use of berms and landscaping, especially in the plant site area. A detailed description of all the air quality and noise mitigation techniques to be used can be found in the Air Quality and Noise Impacts sections of this application package. A traffic study has been prepared and submitted for the Parsons Mine to define appropriate County road Parsons Mine Weld County Special Review Application Page 6 of 9 improvements that will be needed as a result of this mining operation. 7. A statement describing the existing land use. The majority of the property is occupied by irrigated cropland used to grow hay, corn and other row crops. Much of the property is maintained in irrigated and dryland pastures and is used for grazing. 8. Describe, in detail, the following: a. How many people(employees, visitors, buyers, etc.) will use this site? There will be up to 10 employees on the site at any one time. b. What are the hours of operation? Consistent with Section 23-4-290 of the Weld County Code, all sand and gravel operations at the Parsons Mine shall be conducted during the hours of daylight except in the case of an emergency, or to make necessary repairs to equipment. This restriction will not apply to operation of administrative and executive offices or repair facilities located on the property. c. What type and how many animals, if any, will be on this site? There will be no grazing animals on this site during mining. d. What kind(type, size, weight) of vehicles will access this site and how often? Please see the attached Traffic Study by Gene Coppola. e. Who will provide fire protection to the site? The property is located in the Windsor-Severence Fire Protection District. f What is the water source on the property? (commercial well or water district) Due to the limited number of people on site at any one time (10 at the most), the Parsons Mine will use bottled water as potable water. Whitney Ditch Company shares will be used on-site for dewatering, washing the material and dust control. If additional water is necessary, Lafarge will request a tap from the North Weld County Water District's water line that is located in County Road 64'1. g. What is the sewage disposal system on the property? (existing and proposed) There are no existing sewage disposal systems on the property and no sanitary sewer facilities planned for this operation. Lafarge will use portable restrooms near the working face and they will apply for an ISDS permit for the office and plant site area. h. If storage or warehousing is proposed, what type of items will be stored? There will be a 10,000 gallon above ground diesel storage tank on site. The only other materials to be stored will be the sand and gravel resource, and stockpiles of overburden and topsoil. Parsons Mine Weld County Special Review Application Page 7 of 9 L Explain where storage and/or stockpile of wastes will occur on this site. Overburden and topsoil will be stored on the perimeter of the mining cells and north of Phase 2A as shown in the Special Review Map plan set. j. Explain the proposed landscaping/screening for the site. The landscaping shall be separately submitted as a landscape plan map as part of the application submittal. Berming and vegetation will be used to screen the plant site from view from County Road 64'1, County Road 25 and existing adjacent residences. In addition, berms will be placed around the perimeter of the mine cells to serve as a visual barrier where appropriate. The berms will have an average height of 6 to 8 feet tall and are not expected to exceed 15 feet in height; they will have maximum 3:1 (horizontal:vertical) side slopes. The berms will be protected from wind and water erosion by vegetative cover. Sheets 7-10 of the Special Review Map Plan Set are dedicated to illustrating the landscaping that will be installed as part of the reclamation of this site. k Explain how long it will take to construct this site and when construction and landscaping is scheduled to begin. Timetable 23-2-260.O12. It will take approximately 20 years to mine and reclaim the Parsons Mine site; however, the rate of mining and overall life of the mine is dependent upon demand and market conditions. Lafarge practices concurrent reclamation. As mining is completed in a phase, reclamation is initiated and a new mining cell of approximately 30-40 acres is opened. 1. Explain any proposed reclamation procedures when termination of the Use by Special Review activity occurs. Reclamation of the site will include 9 unlined open water ponds (72.6 acres), approximately 43.8 acres of wetlands and enhanced riparian areas and approximately 191.6 acres of upland (approximately 86.6 of these acres are within the mining limits and the remaining 105 acres are other disturbed areas within the permit boundary). The ponds will be reclaimed as un-sealed groundwater ponds. All mine walls will be re- graded with overburden material. Slopes above and 10 feet below the post-mine water level will not exceed 3H:1 V. Slopes more than 10 feet below the post-mine water level will not exceed 2H:1 V. Topsoil will be spread over the surface of the re-graded slopes in all areas (except silt basin wetland) above the post-mining lake levels; all topsoil-covered surfaces will be revegetated with a native seed mix. Scrapers will be used to place the backfilled overburden and topsoil. Using scrapers to layer the lifts at a 3:1 slope ensures a stable configuration. Disturbed areas associated with site access and the conveyor will be scarified, covered with topsoil, and revegetated. Topsoil will be replaced, where required, in reclaimed areas at a depth of approximately six to twelve inches. Site grading will be performed to create stable topography and will be consistent with post- closure land uses. All disturbed areas will be vegetated as appropriate with a native seed mix, as recommended by the Soil Conservation Service. Parsons Mine Weld County Special Review Application Page 8 of 9 Lafarge will concurrently reclaim mine walls where mining has been completed according to the phases outlined in the Mine Plan. Reclamation, including re-grading and seeding, will be completed within two to five years following the completion of mining or filling operations for each phase. The mining and reclamation will leave no high walls on the property. No acid forming or toxic materials will be used or encountered in the mining. There will be no auger holes, adits, or shafts left on the site. m. Explain how the storm water drainage will be handled on the site. A Stormwater Management Plan has been prepared for the site and is included in the Division of Reclamation and Mining Application with Exhibit G as Attachment G-3. n. Method and time schedule of removal or disposal of debris,junk and other wastes associated with the proposed use. All wastes associated with the mining operation will be handled, stored, and disposed of in a manner that controls fugitive dust, blowing debris, and other potential nuisance conditions. No debris,junk or other waste will be left behind on the site following reclamation. o. A statement delineating the need for the proposed use. Sand and gravel mines are needed to satisfy the demand for construction materials in the area. p. A statement which explains the Use by Special Review area is not located in a floodplain, geologic hazard and Weld County Airport overlay district area;or that the application complies with Chapter 23, Article V, Overlay District Regulations as outlined in the Weld County Code. Parsons Mine is not located in a geologic hazard area or in the Weld County Airport Overlay District. However, it is located in the FP-1 (Floodprone)District according to Section 23-5- 230. Because the property is located in the FP-1 District, it will comply with the conditions associated with uses in that District as described in Section 23-5-260 of the Weld County Code. Parsons Mine Weld County Special Review Application Page 9 of 9 NOISE IMPACTS While the land uses in and around the Parsons Mine site(agriculture, sand and gravel extraction and processing operations, industrial operations, and oil and gas development) currently and historically are noise producing operations, Lafarge acknowledges the fact that the Parsons Mine will generate some additional noise in the area. Therefore, noise minimizing and buffering techniques will be used at the Parsons Mine site to provide project compatibility. Sound mitigating measures that will be used include: • Berms will be constructed around the perimeter of the mine adjacent to existing residences to serve as a sound shield. To increase the effectiveness of the berms for sounds shielding, larger than normal setbacks have been provided. The increased setback will allow space to construct taller/more effective berms and move sound producing activities farther from the residences. • Scrapers used for mine development will generally be run at a constant speed and will therefore not be an intrusive sound source. However, backup alarms required by the Mining Health and Safety Association(MSHA) for this equipment can be. Therefore, Lafarge will have scrapers run in a circular pattern to minimize the need to reverse equipment and they will implement white-noise reverse alarms on equipment used frequently near property lines (provided approval for these alarms can be obtained from MSHA). • Mined material will be loaded on a conveyor system for transport to the processing area. The use of conveyors eliminates sound that would otherwise be generated by trucks hauling material. • To further mitigate sound from the crushing and screening operations, shroud covers will be installed on all equipment and sound deadening pads will be installed at material drop points. Parsons Mine Weld County Special Review Application Page l of l AIR QUALITY Lafarge will employ industry best practices at the Parsons Mine in order to minimize offsite fugitive dust impacts. Even though the local area around the Parsons Mine site typically experiences seasonally elevated particulate impacts as a result of existing fugitive dust sources (i.e., agricultural activities, dirt road use and oil and gas development), Lafarge acknowledges the potential exists for an increase in particulate concentrations in the area due to the proposed Parsons Mine operation. Therefore,to increase project compatibility, several mitigating measures will be used to reduce the impacts of the proposed operations to levels at or below those currently experienced due to existing sources. The following measures are planned to be used at the Parsons Mine site: • To control fugitive dust from exposed areas, inactive, exposed areas will be vegetated or stabilized so that they will not be a significant source of fugitive dust. • Fugitive dust from removal activities and the movement of removed material will be inherently controlled by the high moisture content of the material. • A conveyor system will be used to transport material from the extraction area to the material processing and storage area. Use of a conveyor system results in a significant reduction in emissions over transporting the material by trucks. Fugitive dust associated with loading the conveyor will be controlled by the high moisture content of the material. • Fugitive dust from the crushing and screening plant will be controlled through the use of water spray bars. • Fugitive dust from vehicle traffic (haul trucks, front-end loader, etc.)in and around the processing area will be reduced by restricting vehicle speeds and ensuring that high traffic areas are frequently watered or treated with stabilizers. • Unpaved roads and disturbed areas associated with the mining operation will be watered down as often as necessary to minimize re-entrainment of fugitive particulate matter from the road surface. • Dust-forming debris will be promptly removed from paved roads and on-site unpaved roads will be scraped and compacted to stabilize the road surface as often as necessary to minimize re- entrainment of fugitive particulate matter from the road surface. • Loaded haul trucks will be enclosed, covered, watered, or otherwise treated to minimize loss of material due to wind and spillage. • The site will be mined and reclaimed in relatively small (30-40 acre)phases to minimize the area of disturbance at any one time. In addition, concurrent reclamation practices will be used. As mining is completed in a phase, reclamation will be initiated and a new mining cell will be opened. • The proposed berms and mine walls will serve as wind breaks. Parsons Mine Weld County Special Review Application Page I of I LEGAL RIGHT TO ENTER AND MINE Please see the Deeds and Lease Agreements Section of this application for copies of all of the deeds and leases needed to prove that Lafarge has the legal right to enter and mine the site. Parsons Mine Weld County Special Review Application Page I of I OIL AND GAS AGREEMENTS There are four mineral leasehold owners affected by the Parsons Mine: Noble Energy Production, Inc., Blue Chip Oil, Inc., Tigges Oil LLC, and Petro-Canada Resources(USA), Inc. We have met with all four leasehold owners and are in general agreement about the drilling locations for existing and proposed well sites. We are in the process of negotiating Surface Use Agreements with the leasehold owners and will forward copies to the County as soon as they are available. Lafarge acknowledges that the County Staff will require at least a Memorandum of Understanding from each of these mineral leasehold owners prior to scheduling the public hearings associated with this application. Parsons Mine Weld County Special Review Application Page of I Compatible Development and Surface Use Agreement (Livingston Leigh//Lafarge-Tigges) • THIS COMPATIBLE DEVELOPMENT AND SURFACE USE AGREEMENT ("Agreement"), dated effective this Jthiday of,/y,f.fut evr , 2008 is made by and between Lafarge West, Inc, whose( address is 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021, herein called "Lafarge", Livingston Leigh Livestock of Weld County, LLC, whose address is 4124 Spring Canyon Court, Ft. Collins, CO 80525, herein called "Livingston Leigh" and Tigges Oil LLC, whose address is 12406 WCR 64, Greeley, CO 80631, herein called "Tigges." RECITALS: A. Livingston Leigh and Lafarge collectively are the current landowners of those certain tracts of land more particularly described on Exhibit A attached hereto, located in Weld County, Colorado, their respective owned parcels being hereinafter referred to as the "Livingston Leigh Property"and the "Lafarge Property," and collectively as the "Property." B. Lafarge is the current lessee of the Livingston Leigh Property under a sand, gravel and aggregate mining lease (the "Lafarge Lease"). C. Tigges has leasehold interests covering portions of the Property and has the right to develop its oil and gas leasehold estates by drilling and operating wells ("Wells") on the portions of the Property so leased ("Leased Premises"). C. This Agreement provides for the compatible development of the oil and gas estate and the surface estate and sets forth the rights and obligations of the parties with respect to the development of their respective interests in the Leased Premises, with all such rights and obligations to be binding upon the parties and their successors and assigns. AGREEMENT Now, therefore, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Representation and Warranty Regarding Authority to Bind Owner of the Property. Lafarge as to the Lafarge Property and Livingston Leigh as to the Livingston Leigh Property, and subject to the Lafarge Lease, each represents and warrants that it has the right and authority to enter into this Agreement on behalf of and to bind each and every person or entity which owns an interest in the surface estate for its respective portion of the Property constituting the Leased Premises and thereby covered by this Agreement, with respect to all of the terms, provisions and conditions in this Agreement. Lafarge represents and warrants that no other person or entity has any right, title or interest in the Lafarge Lease. 2. Areas Reserved For the Wells; Well Locations. a. Lafarge and Livingston Leigh shall set aside and provide to Tigges those portions of the Property hereinafter referred to as the "Oil and Gas Operations Areas" as depicted on the attached Exhibit B which are locations for existing and future Wells and related Production Facilities (as hereinafter defined). The Oil and Gas Operations Areas shall be made available to Tigges in their present condition (subject to Section 3 below) for all operations conducted by Tigges in connection with any Well, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing and the drilling of twinned and replacement wells. The Oil and Gas Operations Areas shall include the areas shown on Exhibit B which are generally in the shape of a circle with a radius of 200 feet, except as otherwise reflected in the Exhibits. b. Tigges shall also have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities within the Oil and Gas Operations Areas. c. Tigges shall have the right to drill multiple Wells within the Oil and Gas Operations Areas, including horizontal and directional wells that produce in whole or in part from the Property. Oil and Gas Operations Areas shall not be used by Tigges to drill wells with bottom hole locations off of either the Leased Premises or lands within spacing units also including the Leased Premises or portions thereof, or to install Production Facilities that service wells off of the Leased Premises without the prior written consent of Lafarge and, as to the Livingston leigh property, the consent of Livingston Leigh. d. As part of the consideration for this Agreement, Lafarge and Livingston Leigh hereby waive their rights to, and covenant that they will not protest or object to, any exception location or application to drill, redrill, deepen or recomplete any Well on the Property, so long as the Well is located within an Oil and Gas Operations Area. e. Tigges shall drill future Wells as close to the center of the Oil and Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership of the oil and gas horizons. f. Lafarge and Livingston Leigh shall not stockpile mined materials within a radius of 150 feet from existing Wells. 3. Extraction Of Sand And Gravel In Vicinity Of Oil And Gas Operations Areas; Setback Requirements. Lafarge reserves the option, in accordance with the terms of this Section 3, to mine the gravel within those Oil and Gas Operations Areas wherein, at the time of Lafarge's election to mine gravel, there are no existing Wells. a. In the event that Lafarge elects to mine the gravel within an Oil and Gas Operations Area in accordance with this Section 3, Lafarge shall notify Tigges in writing sixty (60)days prior to commencing mining operations within the Oil and Gas Operations Area. b. Lafarge shall conduct and complete its mining operations within the Oil and Gas Operations Area as quickly as is reasonably practicable. In the event that Tigges intends to drill a Well within the Oil and Gas Operations Area, it shall give written notice to Lafarge and meet at the site with Lafarge, as required by Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations, and the parties shall coordinate mining operations with oil and gas operations. 2 c. Excavation within the Oil and Gas Operations Areas will be coordinated with Tigges in a mutually acceptable manner so as to avoid conflict with Tigges's oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. Lafarge will bear all costs associated with such mining operations, including permanent or temporary rerouting and replacement of access roads, flowlines, and utility lines in order to prevent unnecessary interruption of production from any Well. In addition, notwithstanding any other provision of this Agreement, Lafarge and its successors and assigns shall defend, indemnify and hold Tigges harmless from any and all damage, loss and liability, including attorney's fees, incurred by Tigges as a result of Lafarge's excavation operations within the Oil and Gas Operations Areas. Upon completion of mining operations, Lafarge shall fill and level the mined areas to create an even grade throughout the Oil and Gas Operations Area and/or Production Facility Location. d. Lafarge and Livingston Leigh will not locate any future lot line or any building, structure or other improvement within any Oil and Gas Operations Area or Production Facility Location. Lafarge and Livingston Leigh understand and acknowledge 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. In order to give full effect to the purposes of this Agreement, Lafarge and Livingston Leigh each hereby consents to and waives its right to object to the location of any Wells and Production Facilities on the basis of the setback requirements in the rules and regulations of the COGCC, as they may be amended from time to time. Lafarge and Livingston Leigh each further and similarly consents to and waives its right to object to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Tigges, its successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Tigges or its successors and assigns may cite the waiver in this Section in order to obtain a location exception or variance under COGCC rules or from any other state or local governmental body having jurisdiction; provided, however, Lafarge and Livingston Leigh shall not be required to enlarge the amount of the surface area of an Oil and Gas Operations Area to accommodate the location exception or variance. Lafarge and Livingston Leigh will provide Tigges, or its successors and assigns, with whatever written support Tigges may reasonably require to obtain permits from the COGCC or any local jurisdiction and will reasonably cooperate at no material cost to Lafarge or Livingston Leigh in any efforts of Tigges or its successors and assigns to obtain such permits. 4. Gathering Lines and Flowlines. a. Subject to the terms in this Agreement, Tigges has 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 its operations on the Property ("Pipelines"). Except as may be otherwise agreed upon between the parties, the construction and burying of Pipelines shall be at the sole cost and expense of Tigges or its gas purchaser. b. Tigges shall have the right to lay Pipelines within the "Petroleum Pipeline Easements" depicted on Exhibit B or at such other locations as may be mutually agreed to in writing by the parties. Except for those portions of the Petroleum Pipeline Easements that are identified on Exhibits B as specifically being more than thirty(30)feet in width, if any, Petroleum Pipeline Easements shall be fifty (50) feet in width for construction, installation and relocation operations and reduced to thirty (30) feet in width for post-construction usage. Flowline easements shall be thirty(30)feet in width for all operations. - 3 - c. After Tigges installs Pipelines (which shall then be referred to as an "Existing Pipeline"), Lafarge and Livingston Leigh shall have the right to make written requests to Tigges to relocate any Existing Pipeline; provided, however, all costs of such relocations shall be borne by the party making the request. Lafarge, Livingston Leigh and Tigges shall enter into a pipeline relocation agreement prior to the relocation of all or any portion of an Existing Pipeline. The parties shall cooperate with each other to implement pipeline relocations and shall not unreasonably interfere with the operations of the other party. Tigges shall perform the pipeline relocations. d. Lafarge and Livingston Leigh each covenants that it will not attempt to locate any future access road or pipeline easement for Tigges requested by Lafarge or Livingston Leigh within any jurisdictional wetland. The foregoing shall not require Lafarge or Livingston Leigh to consent to well drilling sites outside of legal vertical drilling windows. e. Lafarge and Livingston Leigh shall not disturb the existing cover over Existing Pipelines during their respective operations on the Property, except that: i) when crossing Existing Pipelines with heavy equipment, such as earth moving equipment, Lafarge or Livingston Leigh, as applicable, shall maintain a minimum of four(4)feet and a maximum of six (6) feet of dirt over Existing Pipelines, in addition to the then-existing cover over the Existing Pipeline; and ii) when crossing Existing Pipelines with light trucks and equipment, Lafarge or Livingston Leigh shall maintain a minimum of two (2) feet and a maximum of six (6) feet of dirt coverage over the then existing cover over the Existing Pipeline. The depth of cover over Existing Pipelines shall not be reduced or drainage patterns over Existing Pipelines altered without written approval from Tigges. f. Tigges may install and maintain markers on the Petroleum Pipeline Easements, and Tigges shall mark its flowlines at locations as reasonably requested by Lafarge or Livingston Leigh. g. Lafarge or Livingston Leigh will not conduct or cause to be conducted extraction operations of any kind, including sand, gravel and aggregate mining operations, that are within twenty-five (25) feet from an Existing Pipeline unless an engineer licensed in the State of Colorado and with expert knowledge in the area of soils, opines in a soils stability report, that a setback that is less than twenty-five (25) feet will be sufficient to preserve the integrity of the Existing Pipeline. In such case, upon completion of extraction operations, Lafarge or Livingston Leigh, as applicable, shall backfill and level the area that is within twenty-five (25) feet from the Existing Pipeline. Notwithstanding anything herein to the contrary, Lafarge and Livingston Leigh shall in no event conduct extraction operations closer than fifteen (15) feet from any Existing Pipeline without the prior written approval of Tigges. h. Lafarge and Livingston Leigh shall not stockpile any materials over any Existing Pipeline or in any Petroleum Pipeline Easement. Lafarge and Livingston Leigh shall not permit the construction of any temporary or permanent buildings, structures or other improvements or facilities within or over the Petroleum Pipeline Easements or the Pipelines. Lafarge and Livingston Leigh shall not plant trees or shrubs over the Petroleum Pipeline Easements and Pipelines. -4- 5. Access. a. Lafarge and Livingston Leigh shall provide Tigges with continuous access to all Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements and Pipelines at all times. Tigges agrees to access the Property and the Oil and Gas Operations Areas along those routes depicted and identified as "Access Roads" on Exhibit B. Access to the Oil and Gas Operations Areas may be changed by mutual agreement of Lafarge, Livingston Leigh and Tigges; provided, however, all costs and expenses of such relocations unless requested by Tigges shall be borne by the party requesting the relocation. b. Lafarge or Livingston Leigh shall maintain and keep access roads that are jointly used by Lafarge or Livingston Leigh, repectively, and Tigges in a condition and state of repair that serves the needs of Lafarge or Livingston Leigh or, in the case of relocated existing roads, to at least the standard such road was maintained prior to its relocation, if a more substantial condition. In the event that joint access roads need to be improved in order to serve the needs of Tigges, the parties agree to cooperate to allow Tigges to construct the improvements, such improvements to be at the sole cost and expense of Tigges. Neither Tigges, Livingston Leigh nor Lafarge shall unreasonably interfere with the use by the other of access roads. c. If Lafarge or Livingston Leigh, as part of the relocation of any then existing access road used by Tigges, moves the point of intersection of such road and any public road or highway, the party moving the point of intersection shall be responsible for obtaining and shall pay the costs to obtain from Weld County or any municipal authority having jurisdiction over the Property, as necessary, permits or authorization for the replacement access to and from the public road. d. Construction and Width of Access Roads. Tigges shall be responsible for construction of its own roads in the locations shown on Exhibit B to Oil and Gas Operations Areas for Wells where Lafarge or Livingston Leigh are not constructing roads for their own operations. ii. If Lafarge or Livingston Leigh relocates any then existing road being used by Tigges for access to any Oil and Gas Operations Area, such relocated road shall be built, at Lafarge's or Livingston Leigh's expense, to at least the quality of the road it replaces. iii. Access roads or portions of access roads that are jointly used by Tigges and Lafarge or Livingston Leigh or both shall be thirty(30)feet in width. If Lafarge or Livingston Leigh improves or paves such joint-use roads for regular permanent or extended use, the party improving the roads shall construct or improve them so as to withstand the weight of oilfield equipment. iv. Access roads or portions of access roads that are used exclusively by Tigges shall be thirty (30) feet in width, and Tigges shall install and maintain them to COGCC standards that apply to oil and gas operations. - 5 - e. Lafarge and Livingston Leigh each agrees that it will not mine or extract materials from any portion of the access roads identified on Exhibit B, or those access roads that may be otherwise mutually agreed upon by the parties, without the written consent of Tigges. 6. Batteries and Equipment/ Production Facility Locations/ Electrical Service Lines. a. Tigges shall have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and other equipment ("Production Facility" or "Production Facilities") reasonably appropriate for the operation and production of Wells within the Oil and Gas Operations Areas locations depicted on Exhibit B ("Production Facility Locations.") b. With respect to Production Facilities other than flowlines and Pipelines: Tigges shall install and maintain, at its sole cost and expense, all fences around Wells and Production Facilities in compliance with the Rules and Regulations of the COGCC. ii. Tigges shall install and maintain, at its sole cost and expense, all gates and locks reasonably necessary for the security of the Wells and Production Facilities. iii. Tigges shall paint production facilities for the Wells, including wellhead guards, with a color of paint that is approved by the COGCC. Neither Lafarge nor Livingston Leigh shall prevent or inhibit access by Tigges to the Oil and Gas Operations Areas and Production Facility Locations or prevent or inhibit Tigges' operations within the Oil and Gas Operations Areas or Production Facility Locations by landscaping or other improvements, unless otherwise agreed upon in writing between Lafarge, Livingston Leigh and Tigges. 7. Notice of Future Operations. Tigges shall provide at least seven (7) days prior written notice to Lafarge and Livingston Leigh of operations in connection with reworking, fracturing, deepening or recompletion operations on Wells; provided, however, Tigges shall provide at least thirty (30) days prior written notice to Lafarge and Livingston Leigh of the initial drilling of Wells. Regardless of the foregoing notice requirements, Tigges shall have immediate access to all Production Facilities, Pipelines and Wells in the event of an emergency. After receipt of the above notice, but not less than five (5) working days prior to the date that Tigges plans to commence drilling operations within an Oil and Gas Operations Area, Tigges, Livingston Leigh or Lafarge may request an on-site meeting. The purpose of the meeting shall be for Tigges to inform Lafarge and Livingston Leigh of the proposed oil and gas drilling operations and to coordinate site access, hazards, barricades, restoration or any other issues that may affect the use and development of the Property by Lafarge or Livingston Leigh. 8. Compliance with Safety Regulations. Tigges understands that the surface mining operations of Lafarge on the Property are subject to certain Mine Safety and Health Administration ("MSHA") regulations. Tigges agrees that, while conducting its oil and gas operations on Property, it will make best efforts to comply - 6 - and cause its contractors and subcontractors to comply with MSHA requirements that Lafarge, in writing, notifies Tigges are applicable to Tigges's operations on the Property. 9. Drilling And Completion Operations. Tigges shall endeavor to diligently pursue drilling operations to minimize the total time period for drilling and to avoid rig relocations or startup during the course of drilling. Lafarge and Livingston Leigh waive any objections to continuous (i.e., 24-hour)drilling operations. 10. Shut-In Of Wells. In connection with its operations on the Property wherein Lafarge or Livingston Leigh will utilize heavy equipment, Lafarge or Livingston Leigh, as applicable, shall maintain dirt coverage over Tigges's flowlines and pipelines as set forth in Section 4.e. above. In the event Lafarge or Livingston Leigh intends to commence construction activities where it will utilize heavy equipment or other equipment likely to damage any of Tigges's flowlines or pipelines which are not covered as set forth in Section 4.e., Lafarge or Livingston Leigh will notify Tigges at least twenty (20) days before commencement of said activities, in which event Tigges may, in its discretion and for safety purposes, shut in any pipeline or flowline over which Lafarge's or Livingston Leigh's heavy earth-moving equipment is to be operated. Further, Lafarge or Livingston Leigh may request Tigges to shut in one or more of its Wells, flowlines or pipelines during Lafarge's or Livingston Leigh's construction activity on the Property. In the event that Lafarge or Livingston Leigh requests Tigges to shut in one or more of its Wells, flowlines or pipelines; or should Lafarge or Livingston Leigh interfere with the operations of Tigges on the Property so that Tigges, in its discretion, is required to shut-in one or more of its Wells, flowlines or pipelines or is otherwise prevented from repairing or returning a Well or Wells to production, the party's whose action caused Tigges to shut in shall, during the period of shut-in of any Well, pipeline or flowline, pay Tigges the following amounts for each shut-in: Shut-In Duration Fee per Well per Day 5 days or less None 6 —29 days $150 30- 60 days $200 Lafarge or Livingston Leigh will also pay Tigges any costs to rework the well in order to place the well in production status after the shut-in and costs to replace pipelines and flowlines that are damaged by the surface construction activities of Lafarge or Livingston Leigh. 11. Governmental Proceedings. Lafarge and Livingston Leigh each acknowledge the rights of Tigges to conduct oil and gas operations on the Property in accordance with this Agreement and shall not object to or oppose Tigges in any agency or governmental proceedings, including, but not limited to, the COGCC, Weld County, or other governmental entity related to the operations of Tigges on the Property, including, but not limited to drilling, workovers, well deepenings and recompletions; provided that, the position of Tigges in such proceedings is consistent with this Agreement. - 7- 12. Mining Plans. Lafarge has provided copies to Tigges of its Mining Permit and the engineering structural report prepared in connection with the Mining Permit (the "Plans"). Tigges acknowledges receipt of the Plans and does not object to the Plans. 13. Restricted Use Of The Surface By Tigges. Except for the Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements, Pipelines and the access roads provided for in this Agreement, Tigges shall not occupy the surface of the Property, except in the events of an emergency or for reasonable incidental, temporary and non-damaging activities, for which Tigges shall be responsible for any damages that it causes that may occur to the Property. Tigges shall not have any right to enter upon or occupy the surface of portions of the Property outside of the Leased Premises in any event. 14. Limitation Of Liability, Release And Indemnity. a. No party shall be liable for, or be required to pay for, special, punitive, exemplary, incidental, consequential or indirect damages to any other party for activities undertaken within the scope of this Agreement. b. Except as to claims arising out of pollution or environmental damage (which claims are governed by Section 15 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement), each party shall be and remain responsible for its own liability for all losses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including without limitation, reasonable attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of or connected with each such party's operations on the Property, no matter when asserted, subject to applicable statutes of limitations. Each party shall release, defend, indemnify and hold the other party, its officers, directors, employees, successors and assigns, harmless against all such Claims. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement, other than the right to be indemnified for Claims as provided herein. c. Upon the assignment or conveyance of a party's entire interest in the Property, that party shall be released from the indemnification in Section 14.b. above, for all actions or occurrences happening after such assignment or conveyance. 15. Environmental Indemnity. The provisions of Section 14 above, except for Section 14.a., shall not apply to any environmental matters, which shall be governed exclusively by the following, subject to the limitations of Section 14.a. above: a. "Environmental Claims" shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on the Property and all cleanup and remediation costs, fines and penalties associated therewith, including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of - 8 - any remediation undertaken voluntarily by any party, unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party. b. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order of any governmental authority(ies), which relate to or otherwise impose liability, obligations, or standards with respect to pollution or the protection of the environment, including but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.), the Clean Air Act, and the Toxic Substances Control Act (15 U.S.C. §§ 2601-262 c. Environmental Indemnification. Tigges shall defend, indemnify and hold harmless Lafarge and Livingston Leigh and their respective successors and assigns, from Environmental Claims relating to the Property that arise out of Tigges's operations on the Property. Lafarge shall defend, indemnify and hold harmless Tigges, its successors and assigns, from Environmental Claims relating to the Property that arise out of Lafarge's operations on the Property. Livingston Leigh shall defend, indemnify and hold harmless Tigges, its successors and assigns, from Environmental Claims relating to the Property that arise out of Livingston Leigh's operations on the Property. Notwithstanding the foregoing, each party shall be responsible for and shall protect, indemnify and hold harmless the other party and its officers, directors, employees, successors and assigns, from Environmental Claims arising out of damage caused by such party's own operations and activities on the Property(including, but not limited to, oil and gas operating activities, reclamation activities, road or line relocation, mining activities, onsite water storage and other surface uses) to the other parties' real or personal property, including but not limited to, any Environmental Claims arising out of damage to structures, wells, wellheads, Pipelines, utility lines, pits, liners, facilities or other equipment on the Property. 16. Exclusion from Indemnities. The indemnities of the parties herein shall not cover or include any amounts for which the indemnified party is actually reimbursed by any third party (other than the indemnified party's own insuror). The indemnities in this Agreement shall not relieve any party from any obligations to third parties. 17. Notice of Claim For Indemnification. If a Claim is asserted against a party for which the other party would be liable under the provisions of Section 14 or Section 15 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of the Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within ten (10) days of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. An indemnifying party shall not be obligated to reimburse an indemnified party for amounts paid in settlement of an indemnified Claim unless the indemnifying party has agreed to the settlement, which agreement shall not be unreasonably withheld or delayed. - 9 - 18. Representations. Each party represents that it has the full right and authority to enter into this Agreement with respect to the surface estate or leasehold interests or oil and gas leasehold interests it owns in the Property. 19. Successors and Assigns. The terms, covenants, and conditions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, successors and assigns for Tigges shall be limited to only those assignees under the oil and gas leases that are owned by Tigges. 20. Term. This Agreement shall become effective as of the date written above and shall remain in full force and effect until the latest to occur of the following: i) all of Tigges' oil and gas leasehold interests in the Property have expired or are terminated, and Tigges has plugged and abandoned all Wells it operates on the Property and complied with all reclamation and other requirements in its oil and gas leases and of the COGCC and other entities having jurisdiction; or ii) all of Lafarge's sand, gravel and aggregate mining leasehold interests in the Property have expired or are terminated (as to the portion of the Property leased by Lafarge), and Lafarge has complied with all reclamation and other requirements in its mining leases and Mining Permit and with all other applicable provisions in the mining leases, Mining Permit and state and local permits and rules and regulations. At the time this Agreement terminates, the parties shall execute releases that state that this Agreement no longer applies to the Property, except with respect to the indemnities in this Agreement, which indemnities shall survive termination to the extent provided herein. 21. Notices. Any notice or other communication required or permitted under this Agreement shall be given in writing by any of: i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered with certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: - 10 - Tigges: Lafarge: Tigges Oil LLC Lafarge West, Inc. 12406 WCR 64% 10170 Church Ranch Way, Suite 200 Greeley, CO 80631 Westminster, Colorado 80021 Attention: Attention: Director of Lands Livingston Leigh: Livingston Leigh Livestock of Weld County, LLC 4124 Spring Canyon Court Ft. Collins, C) 80525 Any party may, by written notice so delivered to the other parties, change the address or individual to whom delivery shall thereafter be made. 22. Recording. This Agreement and any amendments shall be recorded by Tigges, and Tigges shall provide Lafarge and Livingston Leigh with copies showing the recording information as soon as practicable thereafter. 23. Surface Damages; Waiver of Payments. In consideration of the respective rights, obligations and benefits of the parties as outlined herein, this Agreement shall constitute a surface use or surface damage agreement as described or provided for in any current or future rule or regulation of the COGCC or any local jurisdiction, state statute or at common law and in any oil and gas lease. In furtherance of the foregoing, Lafarge and Livingston Leigh expressly acknowledge that this Agreement satisfies the obligations and requirements of Tigges pursuant to COGCC rules and regulations and Colorado statutes to consult in good faith with Lafarge and Livingston Leigh regarding proposed oil and gas operations on the Property. Each party further expressly acknowledges that this Agreement shall be deemed to be specifically applicable to, and to satisfy fully, the obligation of the other to accommodate the party's use of the surface of the Property, existing and future and each party waives any statutory or common law claims to the contrary including, but not limited to, any claims pursuant to C.R.S. 34-60-127; provided, however, that neither party waives claims against the other arising from breach of this Agreement. Lafarge and Livingston Leigh hereby waive all surface damage payments or other such payments for the use of the Property or portions thereof pursuant to any current or future COGCC or local regulation, state statute, common law or oil and gas lease or agreement for each and every well and related wellsite that is or will be drilled and located within the Oil and Gas Operations Areas and for Production Facility Locations and Pipelines and Petroleum Pipeline Easements and access roads. Tigges may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. - 11 - 24. Construction. The parties have participated jointly in the negotiating and drafting of this Agreement. In the event ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including, without limitation. 25. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. Venue for any actions shall be in the courts of Weld County, Colorado. 26. Entire Agreement. This Agreement sets forth the entire understanding between the parties regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written document signed by the parties. 27. Execution And Binding Effect. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same instrument. This Agreement is executed by the parties on the dates set forth in the acknowledgements, but to be effective on the date set forth above. TIGGES OIL LLC By: I (Title) LAFARGE WEST, INC. By: (Title) - 12 - LIVINGSTON LEIGH LIVESTOCK OF WELD COUNTY, LLC By: (Title) - 13 - Acknowledgments STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this / ay of 4.,..a, b,y,2008, by f�,AMY-f ye4 g . alcr,,d , as WeoA;' of Tigges Oil LLC on behalf of such 6mpany. Witness my hand and official seal. 1��,�� (4 Notary Pu is . 9.F S Jt. , My Commission Expires: '2A PA?o/! nil cc ` vi itt � CA _O� u O i xyk.HlNtti,t‘'. STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 2008, by as of Lafarge West, Inc. Witness my hand and official seal. Notary Public My Commission Expires: - 14- STATE OF COLORADO ) ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , 2008, by as of Livingston Leigh Livestock of Weld County, LLC. Witness my hand and official seal. 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A \ 1147 I' 1 'I on--......_ r .. _ /+ ' \ - r + •111\ - ; 4'..,'`r �� a r/I .. - 'l id i to 6. s71 t ..+r /. v �.. —r I - = 0 a I W I O I 0 m Q 3NIW 'NOSRIOW '3WVNa3St1 P Y3 :tno..wl OM0 81I8IHX3\AO83N33180MS1I8IHX3SNOI1vl3d0ll0}S13SNVId}6n^Pt6Z0 L£lb\;8 ONIMVHO Wd0' -600Z 'OE AIM" 'Aepsingj P.O.Box 1175 Longmont,CO 80502-1175 Vecchi& 303-774-0173 Fax: 303-774-0173 Associates, LLC e-mail:vecchiassociates@comcast.net Transmittal To: Kim Ogle From: Jennifer Vecchi Fax: Pages: Phone: Date: January 18, 2010 Parsons Mine — Re: cc: Oil & Gas Agreements o Urgent X For Review 0 Please Comment 0 Please Reply 0 Please Recycle • Comments: Kim, Attached please find copies of the following signed Surface Use Agreements for the Parson's Mine: 1. Tigges Oil, LLC 2. Noble Energy, Inc. 3. Blue Chip Oil, Inc. 4. Petro-Canada Resources (USA) Inc. Please note: copies of Blue Chip Oil, Inc. and Petro- Canada Resources (USA) Inc. still need to be signed by Tom Livingston. I will forward the executed agreements as soon aspossible. Thank you. tn ifer Compatible Development and Surface Use Agreement (Lafarge-Tigges) ` THIS COMPATIBLE ("Agre ment"), dated effect effective this I day Ey of Oc. 17) IQ , 2009 USE is made byand between Lafarge West, Inc, whose address is 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021, herein called "Lafarge," and Tigges Oil LLC, whose address is 12406 WCR 64, Greeley, CO 80631, herein called "Tigges." RECITALS: A. Lafarge owns, leases or otherwise has the right to acquire and exclusively use and develop those certain tracts of land more particularly described on Exhibit A attached hereto, located in Weld County, Colorado, hereinafter referred to as the "Property." B. Tigges has leasehold interests covering portions of the Property and has the right to develop its oil and gas leasehold estates by drilling and operating wells ("Wells") on the portions of the Property so leased ("Leased Premises"). C. This Agreement provides for the compatible development of the oil and gas estate and the surface estate and sets forth the rights and obligations of the parties with respect to the development of their respective interests in the Leased Premises, with all such rights and obligations to be binding upon the parties and their successors and assigns. AGREEMENT Now, therefore, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Representation and Warranty Regarding Authority to Bind Owner of the Property. Lafarge represents and warrants that it has the right and authority to enter into this Agreement on behalf of and to bind each and every person or entity which owns an interest in the surface estate for its respective portion of the Property constituting the Leased Premises and thereby covered by this Agreement, with respect to all of the terms, provisions and conditions in this Agreement. 2. Areas Reserved For the Wells; Well Locations. a. Lafarge shall set aside and provide to Tigges those portions of the Property hereinafter referred to as the "Oil and Gas Operations Areas" as depicted on the attached Exhibit B which are locations for existing and future Wells and related Production Facilities (as hereinafter defined). The Oil and Gas Operations Areas shall be made available to Tigges in their present condition (subject to Section 3 below) for all operations conducted by Tigges in connection with any Well, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing and the drilling of twinned and replacement wells. The Oil and Gas Operations Areas shall include the areas shown on Exhibit B which are generally in the shape of a circle with a radius of 200 feet, except as otherwise reflected in the Exhibits. b. Tigges shall also have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities within the Oil and Gas Operations Areas. c. Tigges shall have the right to drill multiple Wells within the Oil and Gas Operations Areas, including horizontal and directional wells that produce in whole or in part from the Property. Oil and Gas Operations Areas shall not be used by Tigges to drill wells with bottom hole locations off of either the Leased Premises or lands within spacing units also including the Leased Premises or portions thereof, or to install Production Facilities that service wells off of the Leased Premises without the prior written consent of Lafarge. d. As part of the consideration for this Agreement, Lafarge hereby waives its rights to, and covenants that it will not protest or object to, any exception location or application to drill, redrill, deepen or recomplete any Well on the Property, so long as the Well is located within an Oil and Gas Operations Area. e. Tigges shall drill future Wells as close to the center of the Oil and Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership of the oil and gas horizons. f. Lafarge shall not stockpile mined materials within a radius of 150 feet from existing Wells. 3. Extraction Of Sand And Gravel In Vicinity Of Oil And Gas Operations Areas; Setback Requirements. Lafarge reserves the option, in accordance with the terms of this Section 3, to mine the gravel within those Oil and Gas Operations Areas wherein, at the time of Lafarge's election to mine gravel, there are no existing Wells. a. In the event that Lafarge elects to mine the gravel within an Oil and Gas Operations Area in accordance with this Section 3, Lafarge shall notify Tigges in writing sixty (60) days prior to commencing mining operations within the Oil and Gas Operations Area. b. Lafarge shall conduct and complete its mining operations within the Oil and Gas Operations Area as quickly as is reasonably practicable. In the event that Tigges intends to drill a Well within the Oil and Gas Operations Area, it shall give written notice to Lafarge and meet at the site with Lafarge, as required by Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations, and the parties shall coordinate mining operations with oil and gas operations. c. Excavation within the Oil and Gas Operations Areas will be coordinated with Tigges in a mutually acceptable manner so as to avoid conflict with Tigges's oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. Lafarge will bear all costs associated with such mining operations, including permanent or temporary rerouting and replacement of access roads, flowlines, and utility lines in order to prevent unnecessary interruption of production from any Well. In addition, notwithstanding any other provision of this Agreement, Lafarge and its successors and assigns shall defend, indemnify and hold Tigges harmless from any and all damage, loss and liability, including attorney's fees, incurred by Tigges as a result of Lafarge's excavation operations within the Oil - 2 - and Gas Operations Areas. Upon completion of mining operations, Lafarge shall fill and level the mined areas to create an even grade throughout the Oil and Gas Operations Area and/or Production Facility Location. d. Lafarge will not locate any future lot line or any building, structure or other improvement within any Oil and Gas Operations Area or Production Facility Location. Lafarge understand and acknowledge 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. In order to give full effect to the purposes of this Agreement, Lafarge hereby consents to and waives its right to object to the location of any Wells and Production Facilities on the basis of the setback requirements in the rules and regulations of the COGCC, as they may be amended from time to time. Lafarge further and similarly consents to and waives its right to object to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Tigges, its successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Tigges or its successors and assigns may cite the waiver in this Section in order to obtain a location exception or variance under COGCC rules or from any other state or local governmental body having jurisdiction; provided, however, Lafarge shall not be required to enlarge the amount of the surface area of an Oil and Gas Operations Area to accommodate the location exception or variance. Lafarge will provide Tigges, or its successors and assigns, with whatever written support Tigges may reasonably require to obtain permits from the COGCC or any local jurisdiction and will reasonably cooperate at no material cost to Lafarge in any efforts of Tigges or its successors and assigns to obtain such permits. 4. Gathering Lines and Flowlines. a. Subject to the terms in this Agreement, Tigges has 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 its operations on the Property ("Pipelines"). Except as may be otherwise agreed upon between the parties, the construction and burying of Pipelines shall be at the sole cost and expense of Tigges or its gas purchaser. b. Tigges shall have the right to lay Pipelines within the "Petroleum Pipeline Easements" depicted on Exhibit B or at such other locations as may be mutually agreed to in writing by the parties. Except for those portions of the Petroleum Pipeline Easements that are identified on Exhibits B as specifically being more than thirty (30) feet in width, if any, Petroleum Pipeline Easements shall be fifty (50) feet in width for construction, installation and relocation operations and reduced to thirty (30) feet in width for post-construction usage. Flowline easements shall be thirty(30)feet in width for all operations. c. After Tigges installs Pipelines (which shall then be referred to as an "Existing Pipeline"), Lafarge shall have the right to make written requests to Tigges to relocate any Existing Pipeline; provided, however, all costs of such relocations shall be borne by Lafarge. Lafarge and Tigges shall enter into a pipeline relocation agreement prior to the relocation of all or any portion of an Existing Pipeline. The parties shall cooperate with each other to implement pipeline relocations and shall not unreasonably interfere with the operations of the other party. Tigges shall perform the pipeline relocations. d. Lafarge covenants that it will not attempt to locate any future access road or pipeline easement for Tigges requested by Lafarge within any jurisdictional wetland. The - 3 - foregoing shall not require Lafarge to consent to well drilling sites outside of legal vertical drilling windows. e. Lafarge shall not disturb the existing cover over Existing Pipelines during its operations on the Property, except that: i) when crossing Existing Pipelines with heavy equipment, such as earth moving equipment, Lafarge shall maintain a minimum of four (4) feet and a maximum of six (6) feet of dirt over Existing Pipelines, in addition to the then-existing cover over the Existing Pipeline; and ii) when crossing Existing Pipelines with light trucks and equipment, Lafarge shall maintain a minimum of two (2) feet and a maximum of six (6) feet of dirt coverage over the then existing cover over the Existing Pipeline. The depth of cover over Existing Pipelines shall not be reduced or drainage patterns over Existing Pipelines altered without written approval from Tigges. f. Tigges may install and maintain markers on the Petroleum Pipeline Easements, and Tigges shall mark its flowlines at locations as reasonably requested by Lafarge. g. Lafarge will not conduct or cause to be conducted extraction operations of any kind, including sand, gravel and aggregate mining operations, that are within twenty-five (25) feet from an Existing Pipeline unless an engineer licensed in the State of Colorado and with expert knowledge in the area of soils, opines in a soils stability report, that a setback that is less than twenty-five (25) feet will be sufficient to preserve the integrity of the Existing Pipeline. In such case, upon completion of extraction operations, Lafarge shall backfill and level the area that is within twenty-five (25) feet from the Existing Pipeline. Notwithstanding anything herein to the contrary, Lafarge shall in no event conduct extraction operations closer than fifteen (15) feet from any Existing Pipeline without the prior written approval of Tigges. h. Lafarge shall not stockpile any materials over any Existing Pipeline or in any Petroleum Pipeline Easement. Lafarge shall not permit the construction of any temporary or permanent buildings, structures or other improvements or facilities within or over the Petroleum Pipeline Easements or the Pipelines. Lafarge shall not plant trees or shrubs over the Petroleum Pipeline Easements and Pipelines. 5. Access. a. Lafarge shall provide Tigges with continuous access to all Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements and Pipelines at all times. Tigges agrees to access the Property and the Oil and Gas Operations Areas along those routes depicted and identified as "Access Roads" on Exhibit B. Access to the Oil and Gas Operations Areas may be changed by mutual agreement of Lafarge and Tigges; provided, however, all costs and expenses of such relocations unless requested by Tigges shall be borne by Lafarge. b. Lafarge shall maintain and keep access roads that are jointly used by Lafarge and Tigges in a condition and state of repair that serves the needs of Lafarge or, in the case of relocated existing roads, to at least the standard such road was maintained prior to its relocation, if a more substantial condition. In the event that joint access roads need to be improved in order to serve the needs of Tigges, the parties agree to cooperate to allow Tigges to construct the improvements, such improvements to be at the sole cost and expense of - 4- Tigges. Neither Tigges nor Lafarge shall unreasonably interfere with the use by the other of access roads. c. If Lafarge, as part of the relocation of any then existing access road used by Tigges, moves the point of intersection of such road and any public road or highway, Lafarge shall be responsible for obtaining and shall pay the costs to obtain from Weld County or any municipal authority having jurisdiction over the Property, as necessary, permits or authorization for the replacement access to and from the public road. d. Construction and Width of Access Roads. Tigges shall be responsible for construction of its own roads in the locations shown on Exhibit B to Oil and Gas Operations Areas for Wells where Lafarge is not constructing roads for its own operations. ii. If Lafarge relocates any then existing road being used by Tigges for access to any Oil and Gas Operations Area, such relocated road shall be built, at Lafarge's expense, to at least the quality of the road it replaces. iii. Access roads or portions of access roads that are jointly used by Tigges and Lafarge or both shall be thirty (30) feet in width. If Lafarge improves or paves such joint-use roads for regular permanent or extended use, Lafarge shall construct or improve them so as to withstand the weight of oilfield equipment. iv. Access roads or portions of access roads that are used exclusively by Tigges shall be thirty (30) feet in width, and Tigges shall install and maintain them to COGCC standards that apply to oil and gas operations. e. Lafarge agrees that it will not mine or extract materials from any portion of the access roads identified on Exhibit B, or those access roads that may be otherwise mutually agreed upon by the parties, without the written consent of Tigges. 6. Batteries and Equipment/ Production Facility Locations/ Electrical Service Lines. a. Tigges shall have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and other equipment ("Production Facility" or "Production Facilities") reasonably appropriate for the operation and production of Wells within the Oil and Gas Operations Areas locations depicted on Exhibit B ("Production Facility Locations.") b. With respect to Production Facilities other than flowlines and Pipelines: Tigges shall install and maintain, at its sole cost and expense, all fences around Wells and Production Facilities in compliance with the Rules and Regulations of the COGCC. ii. Tigges shall install and maintain, at its sole cost and expense, all gates and locks reasonably necessary for the security of the Wells and Production Facilities. - 5 - iii. Tigges shall paint production facilities for the Wells, including wellhead guards, with a color of paint that is approved by the COGCC. Lafarge shall not prevent or inhibit access by Tigges to the Oil and Gas Operations Areas and Production Facility Locations or prevent or inhibit Tigges' operations within the Oil and Gas Operations Areas or Production Facility Locations by landscaping or other improvements, unless otherwise agreed upon in writing between Lafarge and Tigges. 7. Notice of Future Operations. Tigges shall provide at least seven (7) days prior written notice to Lafarge of operations in connection with reworking, fracturing, deepening or recompletion operations on Wells; provided, however, Tigges shall provide at least thirty (30) days prior written notice to Lafarge of the initial drilling of Wells. Regardless of the foregoing notice requirements, Tigges shall have immediate access to all Production Facilities, Pipelines and Wells in the event of an emergency. After receipt of the above notice, but not less than five (5) working days prior to the date that Tigges plans to commence drilling operations within an Oil and Gas Operations Area, Tigges or Lafarge may request an on-site meeting. The purpose of the meeting shall be for Tigges to inform Lafarge of the proposed oil and gas drilling operations and to coordinate site access, hazards, barricades, restoration or any other issues that may affect the use and development of the Property by Lafarge. 8. Compliance with Safety Regulations. Tigges understands that the surface mining operations of Lafarge on the Property are subject to certain Mine Safety and Health Administration ("MSHA") regulations. Tigges agrees that, while conducting its oil and gas operations on Property, it will comply and cause its contractors and subcontractors to comply with MSHA requirements that Lafarge notifies Tigges are applicable to Tigges's operations on the Property. 9. Drilling And Completion Operations. Tigges shall endeavor to diligently pursue drilling operations to minimize the total time period for drilling and to avoid rig relocations or startup during the course of drilling. Lafarge waives any objections to continuous (i.e., 24-hour) drilling operations. 10. Shut-In Of Wells. In connection with its operations on the Property wherein Lafarge will utilize heavy equipment, Lafarge shall maintain dirt coverage over Tigges's flowlines and pipelines as set forth in Section 4.e. above. In the event Lafarge intends to commence construction activities where it will utilize heavy equipment or other equipment likely to damage any of Tigges's flowlines or pipelines which are not covered as set forth in Section 4.e., Lafarge will notify Tigges at least twenty (20) days before commencement of said activities, in which event Tigges may, in its discretion and for safety purposes, shut in any pipeline or flowline over which Lafarge's heavy earth-moving equipment is to be operated. Further, Lafarge may request Tigges to shut in one or more of its Wells, flowlines or pipelines during Lafarge's construction activity on the Property. - 6 - In the event that Lafarge requests Tigges to shut in one or more of its Wells, flowlines or pipelines; or should Lafarge interfere with the operations of Tigges on the Property so that Tigges, in its discretion, is required to shut-in one or more of its Wells, flowlines or pipelines or is otherwise prevented from repairing or returning a Well or Wells to production, Lafarge shall, during the period of shut-in of any Well, pipeline or flowline, pay Tigges the following amounts for each shut-in: Shut-In Duration Fee per Well per Day 5 days or less None 6 —29 days $150 30-60 days $200 Lafarge will also pay Tigges any costs to rework the well in order to place the well in production status after the shut-in and costs to replace pipelines and flowlines that are damaged by the surface construction activities of Lafarge. 11. Governmental Proceedings. Lafarge acknowledges the rights of Tigges to conduct oil and gas operations on the Property in accordance with this Agreement and shall not object to or oppose Tigges in any agency or governmental proceedings, including, but not limited to, the COGCC, Weld County, or other governmental entity related to the operations of Tigges on the Property, including, but not limited to drilling, workovers, well deepenings and recompletions; provided that, the position of Tigges in such proceedings is consistent with this Agreement. 12. Mining Plans. Lafarge has provided copies to Tigges of its Mining Permit and the engineering structural report prepared in connection with the Mining Permit (the "Plans"). Tigges acknowledges receipt of the Plans and does not object to the Plans. 13. Restricted Use Of The Surface By Tigges. Except for the Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements, Pipelines and the access roads provided for in this Agreement, Tigges shall not occupy the surface of the Property, except in the events of an emergency or for reasonable incidental, temporary and non-damaging activities, for which Tigges shall be responsible for any damages that it causes that may occur to the Property. Tigges shall not have any right to enter upon or occupy the surface of portions of the Property outside of the Leased Premises in any event. 14. Limitation Of Liability, Release And Indemnity. a. No party shall be liable for, or be required to pay for, special, punitive, exemplary, incidental, consequential or indirect damages to any other party for activities undertaken within the scope of this Agreement. b. Except as to claims arising out of pollution or environmental damage (which claims are governed by Section 15 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement), each party shall be and remain responsible for its own liability for all losses, claims, damages, demands, suits, causes of action, - 7 - fines, penalties, expenses and liabilities, including without limitation, reasonable attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of or connected with each such party's operations on the Property, no matter when asserted, subject to applicable statutes of limitations. Each party shall release, defend, indemnify and hold the other party, its officers, directors, employees, successors and assigns, harmless against all such Claims. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement, other than the right to be indemnified for Claims as provided herein. c. Upon the assignment or conveyance of a party's entire interest in the Property, that party shall be released from the indemnification in Section 14.b. above, for all actions or occurrences happening after such assignment or conveyance. 15. Environmental Indemnity. The provisions of Section 14 above, except for Section 14.a., shall not apply to any environmental matters, which shall be governed exclusively by the following, subject to the limitations of Section 14.a. above: a. "Environmental Claims" shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on the Property and all cleanup and remediation costs, fines and penalties associated therewith, including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of any remediation undertaken voluntarily by any party, unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party. b. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order of any governmental authority(ies), which relate to or otherwise impose liability, obligations, or standards with respect to pollution or the protection of the environment, including but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.), the Clean Air Act, and the Toxic Substances Control Act (15 U.S.C. §§ 2601-262 c. Tigges shall defend, indemnify and hold harmless Lafarge and its successors and assigns, from Environmental Claims relating to the Property that arise out of Tigges's operations on the Property. Lafarge shall defend, indemnify and hold harmless Tigges, its successors and assigns, from Environmental Claims relating to the Property that arise out of Lafarge's operations on the Property. Notwithstanding the foregoing, each party shall be responsible for and shall protect, indemnify and hold harmless the other party and its officers, directors, employees, successors and assigns, from Environmental Claims arising out of damage caused by such party's own operations and activities on the Property(including, but not limited to, oil and gas operating activities, reclamation activities, road or line relocation, mining activities, onsite water storage and other surface uses) to the other parties' real or personal property, including but not limited to, any Environmental Claims arising out of damage to structures, wells, wellheads, Pipelines, utility lines, pits, liners, facilities or other equipment on the Property. - 8 - 16. Exclusion from Indemnities. The indemnities of the parties herein shall not cover or include any amounts for which the indemnified party is actually reimbursed by any third party (other than the indemnified party's own insuror). The indemnities in this Agreement shall not relieve any party from any obligations to third parties. 17. Notice of Claim For Indemnification. If a Claim is asserted against a party for which the other party would be liable under the provisions of Section 14 or Section 15 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of the Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within ten (10) days of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. An indemnifying party shall not be obligated to reimburse an indemnified party for amounts paid in settlement of an indemnified Claim unless the indemnifying party has agreed to the settlement, which agreement shall not be unreasonably withheld or delayed. 18. Representations. Each party represents that it has the full right and authority to enter into this Agreement with respect to the surface estate or oil and gas leasehold interests it owns in the Property. 19. Successors and Assigns. The terms, covenants, and conditions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, successors and assigns for Tigges shall be limited to only those assignees under the oil and gas leases that are owned by Tigges. 20. Term. This Agreement shall become effective as of the date written above and shall remain in full force and effect until all of Tigges' oil and gas leasehold interests in the Property have expired or are terminated, and Tigges has plugged and abandoned all Wells it operates on the Property and complied with all reclamation and other requirements in its oil and gas leases and of the COGCC and other entities having jurisdiction. At the time this Agreement terminates, the parties shall execute releases that state that this Agreement no longer applies to the Property, except with respect to the indemnities in this Agreement, which indemnities shall survive termination to the extent provided herein. 21. Notices. Any notice or other communication required or permitted under this Agreement shall be given in writing by any of: i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered with certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: - 9 - Tigges: Lafarge: Tigges Oil LLC Lafarge West, Inc. 12406 WCR 64% 10170 Church Ranch Way, Suite 200 Greeley, CO 80631 Westminster, Colorado 80021 Attention: Attention: Director of Lands Any party may, by written notice so delivered to the other parties, change the address or individual to whom delivery shall thereafter be made. 22. Recording. This Agreement and any amendments shall be recorded by Tigges, and Tigges shall provide Lafarge with copies showing the recording information as soon as practicable thereafter. 23. Surface Damages; Waiver of Payments. In consideration of the respective rights, obligations and benefits of the parties as outlined herein, this Agreement shall constitute a surface use or surface damage agreement as described or provided for in any current or future rule or regulation of the COGCC or any local jurisdiction, state statute or at common law and in any oil and gas lease. In furtherance of the foregoing, Lafarge expressly acknowledges that this Agreement satisfies the obligations and requirements of Tigges pursuant to COGCC rules and regulations and Colorado statutes to consult in good faith with Lafarge regarding proposed oil and gas operations on the Property. Each party further expressly acknowledges that this Agreement shall be deemed to be specifically applicable to, and to satisfy fully, the obligation of the other to accommodate the party's use of the surface of the Property, existing and future, and each party waives any statutory or common law claims to the contrary including, but not limited to, any claims pursuant to C.R.S. 34-60-127; provided, however, that neither party waives claims against the other arising from breach of this Agreement. Lafarge hereby waives all surface damage payments or other such payments for the use of the Property or portions thereof pursuant to any current or future COGCC or local regulation, state statute, common law or oil and gas lease or agreement for each and every well and related welisite that is or will be drilled and located within the Oil and Gas Operations Areas and for Production Facility Locations and Pipelines and Petroleum Pipeline Easements and access roads. Tigges may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. 24. Construction. The parties have participated jointly in the negotiating and drafting of this Agreement. In the event ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including, without limitation. - 10 - 25. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. 26. Entire Agreement. This Agreement sets forth the entire understanding between the parties regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written document signed by the parties. 27. Execution And Binding Effect. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same instrument. This Agreement is executed by the parties on the dates set forth in the acknowledgements, but to be effective on the date set forth above. TIGGES OIL LLC By: cit 4 I/ (Title) LAFA2G WEST-1NC. By: 014 -To ;Dv 0i*cite15664- v p fZ w A—G G (Title) _ tt _ Acknowledgments STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER The foregoing instri ent was acknowledged before me this 1 day of t'9C,0-X-1 , 2009, by 1401W.41- t . 71 G)%c , as Si of Tigges Oil LLC on behalf of such pany. Witness my hand and official seal. f 2 Notary Public 3 My Commission Expires: .3 • 24010 ANNE C. JOHNSON NOTARY Pl.BUC STATE OF GO..:1"/Z10 My Cann..';. ... �. ,:,'050 STATE OF COLORADO ) ss. COUNTY OF fQ$&c& ') ) The foregoing instrument was acknowledged before me this (off day of , 2009, by TbbD O141 as UP Bi4( of Lafarge West, Inc. Witness my hand and official seal. Op eatiAtia Notary Public My Commission Expires: '3IdU\O ` .�\ gP., „ Oi U PUB��' • O �0E O fi m 0� \\\`\\• _ 12 _ EXHIBIT A A PARCEL OF LAND LOCATED IN THE NORTHEAST QUARTER OF SECTION 36,THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 25,TOWNSHIP 6 NORTH, RANGE 67 WEST AND THE NORTHWEST QUARTER OF SECTION 31,THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 30,TOWNSHIP 6 NORTH, RANGE 66 WEST,ALL IN THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SECTION 36,WHENCE THE EAST ONE- QUARTER CORNER OF SAID SECTION 36 BEARS SOUTH 00°01'18"WEST,A DISTANCE OF 2642.50 FEET, SAID LINE FORMING THE BASIS OF BEARINGS FOR THIS DESCRIPTION; THENCE ALONG THE EAST LINE OF SAID NORTHEAST QUARTER OF SECTION 36 SOUTH 00°01'18" EAST,A DISTANCE OF 2642.50 FEET TO THE EAST ONE-QUARTER CORNER OF SAID SECTION 36; THENCE ALONG THE SOUTH LINE OF SAID NORTHEAST QUARTER OF SECTION 36 SOUTH 89°33'49"WEST,A DISTANCE OF 2637.48 FEET TO THE CENTER ONE-QUARTER OF SAID SECTION 36;THENCE ALONG THE WEST LINE OF SAID NORTHEAST QUARTER OF SECTION 36 NORTH 00°0520"WEST,A DISTANCE OF 2642.29 FEET TO THE NORTH ONE-QUARTER CORNER OF SAID SECTION 36;THENCE ALONG THE NORTH LINE OF SAID NORTHEAST QUARTER OF SECTION 36 NORTH 89°33'25" EAST,A DISTANCE OF 1290.77 FEET TO A POINT ON THE WESTERLY BOUNDARY LINE OF A PARCEL OF LAND RECORDED AS AMENDED RECORDED EXEMPTION NO. 0805-30-3- RE1089, RECEPTION NO. 2396108,JULY 6, 1994 ACCORDING TO THE WELD COUNTY RECORDS; THENCE ALONG SAID BOUNDARY LINE THE FOLLOW ELEVEN COURSES; 1)THENCE SOUTH 00°44'27"EAST,A DISTANCE OF 259.67 FEET;2)THENCE NORTH 80°15'59"EAST,A DISTANCE OF 15.29 FEET; 3)THENCE SOUTH 68°5127"EAST,A DISTANCE OF 313.55 FEET;4)THENCE NORTH 02°01'20"WEST,A DISTANCE OF 142.56 FEET;5)THENCE NORTH 82°25'15"EAST,A DISTANCE OF 630.89 FEET;6)THENCE NORTH 14°19'53" EAST,A DISTANCE OF 156.77 FEET; 7)THENCE NORTH 11°21'41"EAST,A DISTANCE OF 12.51 FEET;8)THENCE NORTH 02°14'31"EAST,A DISTANCE OF 237.26 FEET;9)THENCE NORTH 42°29'05"EAST,A DISTANCE OF 221.85 FEET; 10)THENCE NORTH 76°57'05"EAST,A DISTANCE OF 137.25 FEET; 11)THENCE SOUTH 51°05'31"EAST,A DISTANCE OF 389.94 FEET TO A POINT ON THE EAST LINE OF THAT TRACT OF LAND DESCRIBED IN BOOK 933 AT RECEPTION NO. 01854849, PARCEL 2,APRIL 10, 1981 ACCORDING TO THE WELD COUNTY RECORDS;THENCE ALONG SAID EAST LINE SOUTH 00°35'52" EAST,A DISTANCE OF 182.30 FEET TO A POINT ON THE NORTH LINE OF SAID NORTHWEST QUARTER OF SECTION 31;THENCE ALONG SAID NORTH LINE NORTH 86°24'57" EAST,A DISTANCE OF 1356.94 FEET TO THE NORTHEAST CORNER OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID SECTION 31; THENCE ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID SECTION 31 SOUTH 00°20'58"WEST,A DISTANCE OF 1007.72 FEET TO A POINT ON THE SOUTHERLY LINE OF A PARCEL OF LAND RECORDED AS RECEPTION NO.2253418, BOOK 1302, JUNE 17, 1991 IN THE WELD COUNTY RECORDS;THENCE ALONG SAID SOUTHERLY BOUNDARY LINE THE FOLLOWING NINE COURSES; 1)THENCE NORTH 63°06'14"WEST,A DISTANCE OF 308.55 FEET;2)THENCE SOUTH 76°10'08"WEST,A DISTANCE OF 419.98 FEET; 3)THENCE SOUTH 66°20'03"WEST,A DISTANCE OF 477.17 FEET;4)THENCE SOUTH 06°09'41"WEST,A DISTANCE OF 425.31 FEET;5)THENCE SOUTH 31°21'08" EAST,A DISTANCE OF 265.50 FEET;6)THENCE SOUTH 04°18'18"WEST,A DISTANCE OF 125.54 FEET; 7)THENCE SOUTH 30°30'33"WEST,A DISTANCE OF 186.53 FEET; 8)THENCE SOUTH 43°32'41"WEST,A DISTANCE OF 301.48 FEET;9)THENCE SOUTH 67°20'04"WEST,A DISTANCE OF 215.43 FEET TO A POINT ON THE EAST LINE OF THAT PARCEL OF LAND RECORDED IN BOOK 429, PAGE 512,MARCH 18, 1916 IN THE WELD COUNTY RECORDS; THENCE ALONG SAID EAST LINE NORTH 00°01'18"WEST,A DISTANCE OF 2300.35 FEET TO A POINT ON THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 31;THENCE ALONG SAID NORTH LINE SOUTH 86°24'56"WEST,A DISTANCE OF 30.06 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 205.452 ACRES. 8 8 Ei E g l3 yogi X o 8 8 a ss o R sw R z ,.. tuCD z ▪ • I O •It: I H U • - G r . . 1 0 m e 1 J 9•▪ y - 0I W Ew6 c? / ,i I- _ o __ iI E a I F. gfrp / I —q F fril 13 r_itt_ Cri "till y I .� I ¢U~ 6O6W e I /• ' Q z>rc °' n I 1 '� gD 1 $320 o gg 1,111\ ((J I ®i aoI0 I i F DIY oz o o w 99 in I 4 e _ i AI I A\ u w° 14J \ ir# ,. l*rr I U u k/H1.-- •1 . ii n �� ••'••'� iss �• r : I w xe_f • •' •. G _J h x N$ WzCCP- SZNJM w e '7' — J ra STWAV _— - - - ----r,,a• L. s = _ — - - - \ 2n0 1 \ f I N 3%IW'NDSNOW 3WVN tl3sn 9113111%31fOAYI DMA 91191N%3f110 S390111sng'H%3 SNJLLYtl3GO 11015133 Nv,tN0P9[0[SLN 90N9/MNO WY 99':IS'01 NOi R^Pw.•GS AepwpM /L' Compatible Development and Surface Use Agreement (Parsons/Lafarge-Noble) THIS COMPATIBLE DEOPMEN,T /,ND SURFACE USE AGREEMENT ("Agreement"), dated effective this /P-day of ,r,4jt�.{j , 2009 is made by and between Lafarge West, Inc, whose address is 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021, herein called "Lafarge", and Noble Energy, Inc., whose address is 1625 Broadway, Suite 2200, Denver, Colorado 80202, herein called"Noble." RECITALS: A. Lafarge is either the (i) current landowner or (ii) the current lessee under one or more sand, gravel and aggregate mining leases of those certain tracts of land more particularly described on Exhibit A attached hereto, located in Weld County, Colorado, and hereinafter referred to collectively as the"Property." B. Noble has oil and gas leasehold interests covering portions of the Property and has the right to develop its oil and gas leasehold estates by drilling and operating wells ("Wells") on the portions of the Property so leased ("Leased Premises"). C. This Agreement provides for the compatible development of the oil and gas estate and the surface estate and sets forth the rights and obligations of the parties with respect to the development of their respective interests in the Leased Premises, with all such rights and obligations to be binding upon the parties and their successors and assigns. AGREEMENT Now, therefore, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Representation and Warranty Regarding Authority to Bind Owner of the Property. Lafarge represents and warrants that it has the right and authority to enter into this Agreement on behalf of and to bind each and every person or entity which owns an interest in the surface estate for all or any portion of the Property constituting the Leased Premises and thereby covered by this Agreement, with respect to all of the terms, provisions and conditions in this Agreement. 2. Areas Reserved For the Wells;Well Locations. a. Lafarge shall set aside and provide to Noble those portions of the Property hereinafter referred to as the "Oil and Gas Operations Areas" as depicted on the attached Exhibit B which are locations for existing and future Wells and related Production Facilities (as hereinafter defined). The Oil and Gas Operations Areas shall be made available to Noble in their present condition (subject to Section 3 below) for all operations conducted by Noble in connection with any Well, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing and the drilling of twinned and replacement wells. The Oil and Gas Operations Areas shall include the areas shown on Exhibit B which are generally in the shape of a circle with a radius of 200 feet, except as otherwise reflected in the Exhibits. b. Noble shall also have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities within the Oil and Gas Operations Areas. c. Noble shall have the right to drill multiple Wells within the Oil and Gas Operations Areas, including horizontal and directional wells that produce in whole or in part from the Property. Oil and Gas Operations Areas shall not be used by Noble to drill wells with bottom hole locations off of either the Leased Premises or lands within spacing units also including the Leased Premises or portions thereof, or to install Production Facilities that service wells off of the Leased Premises without the prior written consent of Lafarge. d. As part of the consideration for this Agreement, Lafarge hereby waives its right to, and covenants that it will not protest or object to, any exception location or application to drill, redrill, deepen or recomplete any Well on the Property, so long as the Well is located within an Oil and Gas Operations Area. e. Noble shall drill future Wells as close to the center of the Oil and Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership of the oil and gas horizons. f. Lafarge shall not stockpile mined materials within a radius of 150 feet from existing Wells. 3. Extraction Of Sand And Gravel In Vicinity Of Oil And Gas Operations Areas; Setback Requirements. Lafarge reserves the option, in accordance with the terms of this Section 3, to mine the gravel within those Oil and Gas Operations Areas wherein, at the time of Lafarge's election to mine gravel,there are no existing Wells. a. In the event that Lafarge elects to mine the gravel within an Oil and Gas Operations Area, Lafarge shall notify Noble in writing sixty (60) days prior to commencing mining operations. In the event Lafarge elects to mine gravel in an Oil and Gas Operations Area that has an existing Well or Wells, Lafarge shall conduct mining within the Oil and.Gas Operations Area by excavating pie shaped wedges of gravel and aggregate and thereafter backfilling and compacting the area with overburden or other suitable material prior to excavating the next pie shaped area; provided, however, in no event shall Lafarge mine within 90 feet of an existing Well or Production Facility, and provided further, that in no event shall more than one quarter circle segment of the pie shape be excavated at any one time. b, In the event that Noble intends to drill a Well within the Oil and Gas Operations Area, it shall give written notice to Lafarge and meet at the site with Lafarge, as required by Colorado Oil and Gas Conservation Commission (°COGCC°) rules and regulations, and the parties shall coordinate mining operations with oil and gas operations. In the event that Noble notifies Lafarge of its intent to conduct operations within an Oil and Gas Operations Area that Larfarge is conducting mining operations, Lafarge shall conduct and complete its mining operations within the Oil and Gas Operations Area as quickly as is reasonably practicable. -2- c. Excavation within the Oil and Gas Operations Areas will be coordinated with Noble in a mutually acceptable manner so as to avoid conflict with Noble's oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. Lafarge will bear all costs associated with such mining operations, including permanent or temporary rerouting and replacement of access roads, flowlines, and utility lines in order to prevent unnecessary interruption of production from any Well. In addition, notwithstanding any other provision of this Agreement, Lafarge and its successors and assigns shall defend, indemnify and hold Noble harmless from any and all damage, loss and liability, including attomey's fees, incurred by Noble as a result of Lafarge's excavation operations within the Oil and Gas Operations Areas. Upon completion of mining operations, Lafarge shall fill and level the mined areas to create an even grade throughout the Oil and Gas Operations Area and/or Production Facility Location. d. Lafarge will not locate any future lot line or any building, structure or other improvement within any Oil and Gas Operations Area or Production Facility Location. Lafarge 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. In order to give full effect to the purposes of this Agreement, Lafarge hereby consents to and waives its right to object to the location of any Wells and Production Facilities on the basis of the setback requirements in the rules and regulations of the COGCC, as they may be amended from time to time. Lafarge further and similarly consents to and waives its right to object to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Noble, its successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Noble or its successors and assigns may cite the waiver in this Section in order to obtain a location exception or variance under COGCC rules or from any other state or local governmental body having jurisdiction; provided, however, Lafarge shall not be required to enlarge the amount of the surface area of an Oil and Gas Operations Area to accommodate the location exception or variance. Lafarge will provide Noble, or its successors and assigns, with whatever written support Noble may reasonably require to obtain permits from the COGCC or any local jurisdiction and will reasonably cooperate at no material cost to Lafarge in any efforts of Noble or its successors and assigns to obtain such permits. 4. Gathering Lines and Flowlines. a. Subject to the terms in this Agreement, Noble has 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 its operations on the Property (Pipelines"). Except as may be otherwise agreed upon between the parties, the construction and burying of Pipelines shall be at the sole cost and expense of Noble or Its gas purchaser. ,Although this Agreement identifies the locations for existing pipelines, flowlines and pipeline easements, nothing herein limits the rights of Noble to route pipelines or flowlines to Wells in the event of unforeseen circumstances associated with mining operations, topographic matters and any other circumstance that Noble could not have foreseen and so long as such pipelines or flowlines do not materially impact the then current operations for the development of the surface estate or the Plans supplied to Noble pursuant to Section 12. b. Noble shall have the right to lay Pipelines within the "Petroleum Pipeline Easements" depicted on Exhibit B or at such other locations as may be mutually agreed to in writing by the parties. Except for those portions of the Petroleum Pipeline Easements that are -3 - identified on Exhibits B as specifically being more than thirty(30)feet in width, if any, Petroleum Pipeline Easements shall be fifty (50) feet in width for construction, installation and relocation operations and reduced to thirty (30) feet in width for post-construction usage. Flowline easements shall be thirty (30)feet in width for all operations. c. After Noble installs Pipelines (which shall then be referred to as an "Existing Pipeline"), Lafarge shall have the right to make written requests to Noble to relocate any Existing Pipeline; provided, however, all costs, risk and expense of such relocations shall be borne by Lafarge. Lafarge and Noble shall enter into a pipeline relocation agreement prior to the relocation of all or any portion of an Existing Pipeline. The parties shall cooperate with each other to implement pipeline relocations and shall not unreasonably interfere with the operations of the other party. Noble shall perform the pipeline relocations. Lafarge covenants that it will not attempt to locate any future access road or pipeline easement for Noble requested by Lafarge within any jurisdictional wetland. d. Lafarge shall not disturb the existing cover over Existing Pipelines during Lafarge's operations on the Property, except that: i)when crossing Existing Pipelines with heavy equipment, such as earth moving equipment, Lafarge shall maintain a minimum of four (4) feet and a maximum of six (6) feet of dirt over Existing Pipelines, in addition to the then-existing cover over the Existing Pipeline; and ii) when crossing Existing Pipelines with light trucks and equipment, Lafarge shall maintain a minimum of two (2) feet and a maximum of six (6) feet of dirt coverage over the then existing cover over the Existing Pipeline. The depth of cover over Existing Pipelines shall not be reduced or drainage patterns over Existing Pipelines altered without written approval from Noble. e. Noble may install and maintain markers on the Petroleum Pipeline Easements, and Noble shall mark its flowlines at locations as reasonably requested by Lafarge. f. Lafarge will not conduct or cause to be conducted extraction operations of any kind, including sand, gravel and aggregate mining operations, that are within twenty-five (25) feet from an Existing Pipeline unless an engineer licensed in the State of Colorado and with expert knowledge in the area of soils, opines in a soils stability report, that a setback that is less than twenty-five (25) feet will be sufficient to preserve the integrity of the Existing Pipeline. In such case, upon completion of extraction operations, Lafarge shall backfill and level the area that is within twenty-five (25) feet from the Existing Pipeline. Notwithstanding anything herein to the contrary, Lafarge shall in no event conduct extraction operations closer than fifteen (15)feet from any Existing Pipeline without the prior written approval of Noble. g. Lafarge shall not stockpile any materials over any Existing Pipeline or in any Petroleum Pipeline Easement. h. Lafarge shall not permit the construction of any temporary or permanent buildings, structures or other improvements or facilities within or over the Petroleum Pipeline Easements or the Pipelines. Lafarge shall not plant trees or shrubs over the Petroleum Pipeline Easements and Pipelines. 5. Access. a. Lafarge shall provide Noble with continuous access to all Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements and Pipelines at all times. -4- Noble agrees to access the Property and the Oil and Gas Operations Areas along those routes depicted and identified as "Access Roads" on Exhibit B. Access to the Oil and Gas Operations Areas may be changed by mutual agreement of Lafarge and Noble; provided, however, all costs and expenses of such relocations unless requested by Noble shall be borne by Lafarge. b. Lafarge shall maintain and keep access roads that are jointly used by Lafarge and Noble in a condition and state of repair that serves the needs of Lafarge or, in the case of relocated existing roads, to at least the standard such road was maintained prior to its relocation, if a more substantial condition. In the event that joint access roads need to be improved in order to serve the needs of Noble, the parties agree to cooperate to allow Noble to construct the improvements, such improvements to be at the sole cost and expense of Noble. Neither Noble nor Lafarge shall unreasonably interfere with the use by the other of access roads. c. If Lafarge, as part of the relocation of any then existing access road used by Noble, moves the point of intersection of such road and any public road or highway, Lafarge shall be responsible for obtaining and shall pay the costs to obtain from Weld County or any municipal authority having jurisdiction over the Property, as necessary, permits or authorization for the replacement access to and from the public road. d. Construction and Width of Access Roads. Noble shall be responsible for construction of its own roads in the locations shown on Exhibit B to Oil and Gas Operations Areas for Wells where Lafarge is not constructing roads for its own operations. ii. If Lafarge relocates any then existing road being used by Noble for access to any Oil and Gas Operations Area, such relocated road shall be built, at Lafarge's expense,to at least the quality of the road it replaces. iii. Access roads or portions of access roads that are jointly used by Noble and Lafarge shall be thirty (30)feet in width. If Lafarge improves or paves such joint-use roads for regular permanent or extended use, Lafarge shall construct or improve them so as to withstand the weight of oilfield equipment. iv. Access roads or portions of access roads that are used exclusively by Noble shall be thirty (30) feet in width, and Noble shall install and maintain them to COGCC standards that apply to oil and gas operations. e. Lafarge agrees that it will not mine or extract materials from any portion of the access roads identified on Exhibit B, or those access roads that may be otherwise mutually agreed upon by the parties, without the written consent of Noble. 6. Batteries and Equipment/Production Facility Locations/Electrical Service Lines. a. Noble shall have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and other equipment ("Production Facility" or "Production Facilities") reasonably appropriate for the operation and production of Wells within the Oil and Gas Operations Areas locations depicted on Exhibit B ("Production Facility Locations.") - 5- b. With respect to Production Facilities other than flowlines and Pipelines: Noble shall install and maintain, at its sole cost and expense, all fences around Wells and Production Facilities in compliance with the Rules and Regulations of the COGCC. ii. Noble shall install and maintain, at its sole cost and expense, all gates and locks reasonably necessary for the security of the Wells and Production Facilities. iii. Noble shall paint production facilities for the Wefts, including wellhead guards, with a color of paint that is approved by the COGCC. Lafarge shall not prevent or inhibit access by Noble to the Oil and Gas Operations Areas and Production Facility Locations or prevent or inhibit Noble's operations within the Oil and Gas Operations Areas or Production Facility Locations by landscaping or other improvements, unless otherwise agreed upon in writing between Lafarge and Noble. Further, at Lafarge's risk and expense it agrees to coordinate efforts with Noble in locating conveyor systems to cross Noble's access roads and shall locate-conveyor systems so as not to delay or prevent Noble the ability to conduct Oil and Gas Operations on the Property. Lafarge shall place temporary concrete barriers around Production Facilities as directed by Noble, before the commencement of mining operations within the Oil and Gas Operations Area. In no event shall Lafarge mine within ninety(90) feet of Production Facilities or stockpile mined materials within a radius of fifty (50)feet of Production Facilities. 7. Notice of Future Operations. Noble shall provide at least seven (7)days prior written notice to Lafarge of operations in connection with reworking,fracturing, deepening or recompfetion operations on Wells; provided, however, Noble shall provide at least thirty (30) days prior written notice to Lafarge of the initial drilling of Wells. Regardless of the foregoing notice requirements, Noble shall have immediate access to all Production Facilities, Pipelines and Welts in the event of an emergency. After receipt of the above notice, but not less than five (5) working days prior to the date that Noble plans to commence drilling operations within an Oil and Gas Operations Area, Noble or Lafarge may request an on-site meeting. The purpose of the meeting shall be for Noble to inform Lafarge of the proposed oil and gas drilling operations and to coordinate site access, hazards, barricades, restoration or any other issues that may affect the use and development of the Property by Lafarge. 8. Compliance with Safety Regulations. Noble understands that the surface mining operations of Lafarge on the Property are subject to certain Mine Safety and Health Administration ("MSHA") regulations. Noble agrees that, while conducting its oil and gas operations on Property, it will use reasonable efforts to comply with MSHA requirements that Lafarge notifies them in writing are applicable to their operations on the Property. Noble agrees to notify its contractors and subcontractors about such requirements. -6- 9. Drilling And Completion Operations. Noble shall endeavor to diligently pursue drilling operations to minimize the total time period for drilling and to avoid rig relocations or startup during the course of drilling. Lafarge waives any objections to continuous(i.e., 24-hour) drilling operations. 10. Shut-In Of Wells. In connection with its operations on the Property wherein Lafarge will utilize heavy equipment, Lafarge shall maintain dirt coverage over Noble's flowlines and pipelines as set forth in Section 4.d. above. In the event Lafarge intends to commence construction activities where it will utilize heavy equipment or other equipment likely to damage any of Noble's flowlines or pipelines which are not covered as set forth in Section 4.d., Lafarge will notify Noble at least twenty (20) days before commencement of said activities, in which event Noble may, in its discretion and for safety purposes, shut in any pipeline or flowline over which Lafarge's heavy earth-moving equipment is to be operated. Further, Lafarge may request Noble to shut in one or more of its Wells,flowlines or pipelines during Lafarge's construction activity on the Property. In the event that Lafarge requests Noble to shut in one or more of its Wells, flowlines or pipelines; or should Lafarge interfere with the operations of Noble on the Property so that Noble, in its discretion, is required to shut-in one or more of its Wells, flowlines or pipelines or is otherwise prevented from repairing or returning a Well or Wells to production, Lafarge shall, during the period of shut-in of any Well, pipeline or flowline, pay Noble five-hundred-dollars ($500.00) per day for each Well that is shut-in. Lafarge will also pay Noble any costs to rework the well in order to place the well in production status after the shut-in and costs to replace pipelines and flowlines that are damaged by the surface construction activities of Lafarge. 11. Governmental Proceedings. Lafarge acknowledges the rights of Noble to conduct oil and gas operations on the Property in accordance with this Agreement and shall not object to or oppose Noble in any agency or governmental proceedings, including, but not limited to,the COGCC, Weld County, or other governmental entity related to the operations of Noble on the Property, including, but not limited to drilling, workovers, well deepenings and recompletions; provided that, the position of Noble in such proceedings is consistent with this Agreement. 12. Mining Plans. Lafarge has provided copies to Noble of its Mining Permit and the engineering structural report prepared in connection with the Mining Permit (the "Plans"). Noble acknowledges receipt of the Plans and does not object to the Plans; provided that the Plans remain consistent with this Agreement. 13. Restricted Use Of The Surface By Noble. Except for the Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements, Pipelines and the access roads provided for in this Agreement, Noble shall not occupy the surface of the Property, except in the events of an emergency or for reasonable -7- incidental, temporary and non-damaging activities, for which Noble shall be responsible for any damages that it causes that may occur to the Property. 14. Limitation Of Liability, Release And Indemnity. a. No party shall be liable for, or be required to pay for, special, punitive, exemplary, incidental, consequential or indirect damages to any other party for activities undertaken within the scope of this Agreement. b. Except as to claims arising out of pollution or environmental damage (which claims are governed by Section 15 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement), each party shall be and remain responsible for its own liability for all lasses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including without limitation, reasonable attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of or connected with each such party's operations on the Property, no matter when asserted, subject to applicable statutes of limitations. Each party shall release, defend, indemnify and hold the other party, its officers, directors, employees, successors and assigns, harmless against all such Claims. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement, other than the right to be indemnified for Claims as provided herein. c. Upon the assignment or conveyance of a party's entire interest in the Property, that party shall be released from the indemnification in Section 14.b. above, for all actions or occurrences happening after such assignment or conveyance. 15. Environmental Indemnity. The provisions of Section 14 above, except for Section 14.a., shall not apply to any environmental matters, which shall be governed exclusively by the following, subject to the limitations of Section 14.a.above: a. "Environmental Claims" shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on the Property and all cleanup and remediation costs,fines and penalties associated therewith, including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of any remediation undertaken voluntarily by any party, unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party. b. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order of any governmental authority(ies), which relate to or otherwise impose liability, obligations, or standards with respect to pollution or the protection of the environment, including but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended(42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.), the Clean Air Act, and the Toxic Substances Control Act (15 U.S.C. §§2601-262 -8- c. Environmental Indemnification. Noble shall defend, indemnify and hold harmless Lafarge, its successors and assigns, from Environmental Claims relating to the Property that arise out of Noble's operations on the Property. Lafarge shall defend, indemnify and hold harmless Noble, its successors and assigns, from Environmental Claims relating to the Property that arise out of Lafarge's operations on the Property. Notwithstanding the foregoing, each party shall be responsible for and shall protect, indemnify and hold harmless the other party and its officers, directors, employees, successors and assigns, from Environmental Claims arising out of damage caused by such party's own operations and activities on the Property (including, but not limited to, oil and gas operating activities, reclamation activities, road or line relocation, mining activities and onsite water storage) to the other parties' real or personal property, including but not limited to, any Environmental Claims arising out of damage to structures,wells, wellheads, Pipelines, utility lines, pits, liners, facilities or other equipment on the Property. 16. Exclusion from Indemnities. The indemnities of the parties herein shall not cover or include any amounts for which the indemnified party is actually reimbursed by any third party (other than the indemnified party's own insuror). The indemnities in this Agreement shall not relieve any party from any obligations to third parties. 17. Notice of Claim For Indemnification. If a Claim is asserted against a party for which the other party would be liable under the provisions of Section 14 or Section 15 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the Indemnifying party written notice of the Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within ten (10) days of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. An indemnifying party shall not be obligated to reimburse an indemnified party for amounts paid in settlement of an indemnified Claim unless the indemnifying party has agreed to the settlement,which agreement shall not be unreasonably withheld or delayed. 18. Representations. Each party represents that it has the full right and authority to enter into this Agreement with respect to the surface estate or leasehold interests or oil and gas leasehold interests it owns in the Property. 19. Successors and Assigns. The terms, covenants, and conditions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, successors and assigns for Noble shall be limited to only those assignees under the oil and gas leases that are owned by Noble. 20. Term. This Agreement shall become effective as of the date written above and shall remain in full force and effect until the latest to occur of the following: i) all of Noble's oil and gas leasehold interests in the Property have expired or are terminated, and Noble has plugged and abandoned all Wells -9- it operates on the Property and complied with all reclamation and other requirements in its oil and gas leases and of the COGCC and other entities having jurisdiction; or ii) all of Lafarge's sand, gravel and aggregate mining leasehold interests in the Property have expired or are terminated (as to the portion of the Property leased by Lafarge), and Lafarge has complied with all reclamation and other requirements in its mining leases and Mining Permit and with all other applicable provisions in the mining leases, Mining Permit and state and local permits and rules and regulations. At the time this Agreement terminates, the parties shall execute releases that state that this Agreement no longer applies to the Property, except with respect to the indemnities in this Agreement, which indemnities shall survive termination to the extent provided herein. 21. Notices. Any notice or other communication required or permitted under this Agreement shall be given in writing by any of: I) personal delivery; ii) expedited delivery service with proof of delivery; ill) United States mail, postage prepaid, and registered with certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Noble: Lafarge: Noble Energy, Inc. Lafarge West, Inc. 1625 Broadway, Suite 2200 10170 Church Ranch Way, Suite 200 Denver, CO 80202 Westminster, Colorado 80021 Attention: Wattenberg Land Manager Attention: Director of Lands Any party may, by written notice so delivered to the other parties, change the address or individual to whom delivery shall thereafter be made. 22. Recording. This Agreement and any amendments shall be recorded by Noble, and Noble shall provide Lafarge with copies showing the recording information as soon as practicable thereafter. 23. Surface Damages;Waiver of Payments. In consideration of the respective rights, obligations and benefits of the parties as outlined herein, this Agreement shall constitute a surface use or surface damage agreement as described or provided for in any current or future rule or regulation of the COGCC or any local jurisdiction, state statute or at common law and in any oil and gas lease. In furtherance of the foregoing, Lafarge expressly acknowledges that this Agreement satisfies the obligations and requirements of Noble pursuant to COGCC rules and regulations and Colorado statutes to consult in good faith with Lafarge regarding proposed oil and gas operations on the Property. Each party further expressly acknowledges that this Agreement shall be deemed to be specifically applicable to, and to satisfy fully, the obligation of the other to accommodate the party's use of the surface of the Property, existing and future and each party waives any statutory or common law claims to the contrary including, but not limited to,any claims pursuant to C.R.S. 34-60-127; provided, however, that neither party waives claims against the other arising from breach of this Agreement. - 10- Lafarge hereby waives all surface damage payments or other such payments for the use of the Property or portions thereof pursuant to any current or future COGCC or local regulation, state statute, common law or oil and gas lease or agreement for each and every well and related weilsite that is or will be drilled and located within the Oil and Gas Operations Areas and for Production Facility Locations and Pipelines and Petroleum Pipeline Easements and access roads. Noble may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. 24. Construction. The parties have participated jointly in the negotiating and drafting of this Agreement. In the event ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise.The word°including"shall mean including,without limitation. 25. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. 26. Entire Agreement. This Agreement sets forth the entire understanding between the parties regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written document signed by the parties. 27. Execution And Binding Effect. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same instrument. This Agreement is executed by the parties on the dates set forth in the acknowledgements, but to be effective on the date set forth above. - 11 - NOBLE ENERGY, INC. t3y. Oiltb/ P. avid PadgettL Attorney-In-Fact 'AFAR E WEST plG By. raDr7 0H-LI+z5G-Vc V? (4w~- A-(oc (Title) - 12- Acknowledgments STATE OF COLORADO ) CITY AND )ss. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this vYG day of ' fI1oi,Y' , � 2009, by P. David Padgett, as Attorney-In-Fact of Noble Energy, inc. on behalf of such corporation. otNUHlrrl! 'I ipwrisrjd and official seal. -. O :• '•O? 'yy �cr OS AR Y __s`._ o - ota Public My G�a�ti�scion Etf, ' 4/Ao/zOiL STATE OF COLORADO ) ss. COUNTY OF�,Cck6bfl. ) e foregoing instrumen was acknowledged before me this f rd�aY,,�of 2009, by -Oil y b - r.�ee as i7 �/r'/ of Lafarge West, Inc. Witness my hand and official seal. 3:14A Sfrka,,Ag , � No ry Public My Commission Expires: 11(3V aotD :::--CI I tPRY . , Ez- P� ;n�Qc - 13- EXHIBIT A PROPERTY The NE1/4 of Section 36,Township 6 North, Range 67 West,6'h P.M., Weld County, Colorado 0B • ,b t t :a'n, ke �- s i '"' 'fir'`--•�. ,,,. lor--r---r, :. i :ill r'. x Ed tirfg. Gx 9 •:rf':-r t _ p —I MO i, -=, �� X25' Q z m m ooxi _ •+ • o II• ® • m - f I a Z n M 'o iii "J IF20 ° P t g o;—rm E CO H > m Iz - # C..if O0r f^ ZQO m Zm - v }g r_. , 4 _ M D Y� : Z Z i,•itr37 a s . 51 Y i I I Eft { ..e.RK ....,a .„,. ,a / get nca.ntnmY.m, .._. ._.- ..... lL TETRA TECH 3 '. 4 EXHIBIT-1r f ge �'" °•NOBLE ENERGY „ In,.MIdlIGI tl i OIL&GAS OPERATIONS ' e - n.. 1 I Compatible Development and Surface Use Agreemer (Livingston Leigh//Lafarge-Blue Chip) THIS COMPATIBLE DEVELOPMENT AND SURFACE USE AGREEMENT ("Agreement"), dated effective this lI'day of /Vote"G-€1 , 2008 is made by and between Lafarge West, Inc, whose address is 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021, herein called "Lafarge", Livingston Leigh Livestock of Weld County, LLC, whose address is 4124 Spring Canyon Court, Ft. Collins, CO 80525, herein called "Livingston Leigh" and Blue Chip Oil, Inc., whose address is 155 E. Boardwalk Dr., Suite 400, Ft. Collins, CO 80525, herein called "Blue Chip." RECITALS: A. Livingston Leigh and Lafarge collectively are the current landowners of those certain tracts of land more particularly described on Exhibit A attached hereto, located in Weld County, Colorado, their respective owned parcels being hereinafter referred to as the "Livingston Leigh Property" and the "Lafarge Property," and collectively as the "Property." B. Lafarge is the current lessee of the Livingston Leigh Property under a sand, gravel and aggregate mining lease (the "Lafarge Lease"). C. Blue Chip has leasehold interests covering portions of the Property and has the right to develop its oil and gas leasehold estates by drilling and operating wells ('Wells") on the portions of the Property so leased ("Leased Premises"). C. This Agreement provides for the compatible development of the oil and gas estate and the surface estate and sets forth the rights and obligations of the parties with respect to the development of their respective interests in the Leased Premises, with all such rights and obligations to be binding upon the parties and their successors and assigns. AGREEMENT Now, therefore, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Representation and Warranty Regarding Authority to Bind Owner of the Property. Lafarge as to the Lafarge Property and Livingston Leigh as to the Livingston Leigh Property, and subject to the Lafarge Lease, each represents and warrants that it has the right and authority to enter into this Agreement on behalf of and to bind each and every person or entity which owns an interest in the surface estate for its respective portion of the Property constituting the Leased Premises and thereby covered by this Agreement, with respect to all of the terms, provisions and conditions in this Agreement. Lafarge represents and warrants that no other person or entity has any right, title or interest in the Lafarge Lease. 2. Areas Reserved For the Wells; Well Locations. a. Lafarge and Livingston Leigh shall set aside and provide to Blue Chip those portions of the Property hereinafter referred to as the "Oil and Gas Operations Areas" as depicted on the attached Exhibit B which are locations for existing and future Wells and related Production Facilities (as hereinafter defined). The Oil and Gas Operations Areas shall be made available to Blue Chip in their present condition (subject to Section 3 below) for all operations conducted by Blue Chip in connection with any Well, including, but not limited to, drilling and production activities, workovers, well deepenings, recompletions, fracturing and the drilling of twinned and replacement wells. The Oil and Gas Operations Areas shall include the areas shown on Exhibit B which are generally in the shape of a circle with a radius of 200 feet, except as otherwise reflected in the Exhibits. b. Blue Chip shall also have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities within the Oil and Gas Operations Areas. c. Blue Chip shall have the right to drill multiple Wells within the Oil and Gas Operations Areas, including horizontal and directional wells that produce in whole or in part from the Property. Oil and Gas Operations Areas shall not be used by Blue Chip to drill wells with bottom hole locations off of either the Leased Premises or lands within spacing units also including the Leased Premises or portions thereof, or to install Production Facilities that service wells off of the Leased Premises without the prior written consent of Lafarge and, as to the Livingston Leigh Property, the consent of Livingston Leigh. d. As part of the consideration for this Agreement, Lafarge and Livingston Leigh hereby waive their rights to, and covenant that they will not protest or object to, any exception location or application to drill, redrill, deepen or recomplete any Well on the Property, so long as the Well is located within an Oil and Gas Operations Area. e. Blue Chip shall drill future Wells as close to the center of the Oil and Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership of the oil and gas horizons. f. Lafarge and Livingston Leigh shall not stockpile mined materials within a radius of 150 feet from existing Wells and shall not construct or allow to be constructed any pond, body of water, or public water system at a location that would prevent Blue Chip from continuing to operate the existing well and from drilling the additional well sites within the Oil and Gas Operations Area identified on the attached Exhibit B. 3. Extraction Of Sand And Gravel In Vicinity Of Oil And Gas Operations Areas; Setback Requirements. Lafarge reserves the option, in accordance with the terms of this Section 3, to mine the gravel within those Oil and Gas Operations Areas wherein, at the time of Lafarge's election to mine gravel, there are no existing Wells. a. In the event that Lafarge elects to mine the gravel within an Oil and Gas Operations Area in accordance with this Section 3, Lafarge shall notify Blue Chip in writing sixty (60) days prior to commencing mining operations within the Oil and Gas Operations Area. b. Lafarge shall conduct and complete its mining operations within the Oil and Gas Operations Area as quickly as is reasonably practicable. In the event that Blue Chip intends to drill a Well within the Oil and Gas Operations Area, it shat: give written notice to Lafarge and - 2 - meet at the site with Lafarge, as required by Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations, and the parties shall coordinate mining operations with oil and gas operations. c. Excavation within the Oil and Gas Operations Areas will be coordinated with Blue Chip in a mutually acceptable manner so as to avoid conflict with Blue Chip's oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. Lafarge will bear all costs associated with such mining operations, including permanent or temporary rerouting and replacement of access roads, flowlines, and utility lines in order to prevent unnecessary interruption of production from any Well. In addition, notwithstanding any other provision of this Agreement, Lafarge and its successors and assigns shall defend, indemnify and hold Blue Chip harmless from any and all damage, loss and liability, including attorney's fees, incurred by Blue Chip as a result of Lafarge's excavation operations within the Oil and Gas Operations Areas. Upon completion of mining operations, Lafarge shall fill and level the mined areas to create an even grade throughout the Oil and Gas Operations Area and/or Production Facility Location. d. Lafarge and Livingston Leigh will not locate any future lot line or any building, structure or other improvement within any Oil and Gas Operations Area or Production Facility Location. Lafarge and Livingston Leigh understand and acknowledge 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. In order to give full effect to the purposes of this Agreement, Lafarge and Livingston Leigh each hereby consents to and waives its right to object to the location of any Wells and Production Facilities on the basis of the setback requirements in the rules and regulations of the COGCC, as they may be amended from time to time. Lafarge and Livingston Leigh each further and similarly consents to and waives its right to object to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Blue Chip, its successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Blue Chip or its successors and assigns may cite the waiver in this Section in order to obtain a location exception or variance under COGCC rules or from any other state or local governmental body having jurisdiction; provided, however, Lafarge and Livingston Leigh shall not be required to enlarge the amount of the surface area of an Oil and Gas Operations Area to accommodate the location exception or variance. Lafarge and Livingston Leigh will provide Blue Chip, or its successors and assigns, with whatever written support Blue Chip may reasonably require to obtain permits from the COGCC or any local jurisdiction and will reasonably cooperate at no material cost to Lafarge or Livingston Leigh in any efforts of Blue Chip or its successors and assigns to obtain such permits. 4. Gathering Lines and Flowlines. a. Subject to the terms in this Agreement, Blue Chip has 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 its operations on the Property ("Pipelines"). Except as to pipeline relocations mentioned below or as may be otherwise agreed upon between the parties, the construction and burying of any subsequently constructed Pipelines shall be at the sole cost and expense of Blue Chip or its gas purchaser. b. Blue Chip shall have the right to lay Pipelines within the "Petroleum Pipeline Easements" depicted on Exhibit B or at such other locations as may be mutually agreed to in - 3 - writing by the parties. Except for those portions of the Petroleum Pipeline Easements that are identified on Exhibits B as specifically being more than thirty (30)feet in width, if any, Petroleum Pipeline Easements shall be fifty (50) feet in width for construction, installation and relocation operations and reduced to thirty (30) feet in width for post-construction usage. Flowline easements shall be thirty(30)feet in width for all operations. c. After Blue Chip installs Pipelines (which shall then be referred to as an "Existing Pipeline"), Lafarge and Livingston Leigh shall have the right to make written requests to Blue Chip to relocate any Existing Pipeline; provided, however, all costs of such relocations shall be borne by the party making the request. Lafarge, Livingston Leigh and Blue Chip shall enter into a pipeline relocation agreement prior to the relocation of all or any portion of an Existing Pipeline. The parties shall cooperate with each other to implement pipeline relocations and shall not unreasonably interfere with the operations of the other party. Blue Chip shall perform the pipeline relocations. d. Lafarge and Livingston Leigh each covenants that it will not attempt to locate any future access road or pipeline easement for Blue Chip requested by Lafarge or Livingston Leigh within any jurisdictional wetland. The foregoing shall not require Lafarge or Livingston Leigh to consent to well drilling sites outside of legal vertical drilling windows. e. Lafarge and Livingston Leigh shall not disturb the existing cover over Existing Pipelines during their respective operations on the Property, except that: i) when crossing Existing Pipelines with heavy equipment, such as earth moving equipment, Lafarge or Livingston Leigh, as applicable, shall maintain a minimum of four (4) feet and a maximum of six (6) feet of dirt over Existing Pipelines, in addition to the then-existing cover over the Existing Pipeline; and ii) when crossing Existing Pipelines with light trucks and equipment, Lafarge or Livingston Leigh shall maintain a minimum of two (2) feet and a maximum of six (6) feet of dirt coverage over the then existing cover over the Existing Pipeline. The depth of cover over Existing Pipelines shall not be reduced or drainage patterns over Existing Pipelines altered without written approval from Blue Chip. f. Blue Chip may install and maintain markers on the Petroleum Pipeline Easements, and Blue Chip shall mark its flowlines at locations as reasonably requested by Lafarge or Livingston Leigh. g. Lafarge or Livingston Leigh will not conduct or cause to be conducted extraction operations of any kind, including sand, gravel and aggregate mining operations, that are within twenty-five (25) feet from an Existing Pipeline unless an engineer licensed in the State of Colorado and with expert knowledge in the area of soils, opines in a soils stability report, that a setback that is less than twenty-five (25) feet will be sufficient to preserve the integrity of the Existing Pipeline. In such case, upon completion of extraction operations, Lafarge or Livingston Leigh, as applicable, shall backfill and level the area that is within twenty-five (25) feet from the Existing Pipeline. Notwithstanding anything herein to the contrary, Lafarge and Livingston Leigh shall in no event conduct extraction operations closer than fifteen (15) feet from any Existing Pipeline without the prior written approval of Blue Chip. h. Lafarge and Livingston Leigh shall not stockpile any materials over any Existing Pipeline or in any Petroleum Pipeline Easement. Lafarge and Livingston Leigh shall not permit the construction of any temporary or permanent buildings, structures or other improvements or facilities within or over the -4 - Petroleum Pipeline Easements or the Pipelines. Lafarge and Livingston Leigh shall not plant trees or shrubs over the Petroleum Pipeline Easements and Pipelines. 5. Access. a. Lafarge and Livingston Leigh shall provide Blue Chip with continuous access to all Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements and Pipelines at all times. Blue Chip agrees to access the Property and the Oil and Gas Operations Areas along those routes depicted and identified as "Access Roads" on Exhibit B. Access to the Oil and Gas Operations Areas may be changed by mutual agreement of Lafarge, Livingston Leigh and Blue Chip; provided, however, all costs and expenses of such relocations unless requested by Blue Chip shall be borne by the party requesting the relocation. b. Lafarge or Livingston Leigh shall maintain and keep access roads that are jointly used by Lafarge or Livingston Leigh, respectively, and Blue Chip in a condition and state of repair that serves the needs of Lafarge or Livingston Leigh or, in the case of relocated existing roads, to at least the standard such road was maintained prior to its relocation. In the event that joint access roads need to be improved in order to serve the needs of Blue Chip, the parties agree to cooperate to allow Blue Chip to construct the improvements, such improvements to be at the sole cost and expense of Blue Chip. Neither Blue Chip, Livingston Leigh nor Lafarge shall unreasonably interfere with the use by the other of access roads. c. If Lafarge or Livingston Leigh, as part of the relocation of any then existing access road used by Blue Chip, moves the point of intersection of such road and any public road or highway, the party moving the point of intersection shall be responsible for obtaining and shall pay the costs to obtain from Weld County or any municipal authority having jurisdiction over the Property, as necessary, permits or authorization for the replacement access to and from the public road. d. Construction and Width of Access Roads. Blue Chip shall be responsible for construction of its own roads in the locations shown on Exhibit B to Oil and Gas Operations Areas for Wells where Lafarge or Livingston Leigh are not constructing roads for their own operations. ii. If Lafarge or Livingston Leigh wishes to relocate any then existing road being used by Blue Chip for access to any Oil and Gas Operations Area, such relocated road shall be built, at Lafarge's or Livingston Leigh's expense, to at least the quality of the road it replaces and subject to the written consent of Blue Chip, which consent shall not be unreasonably withheld, conditioned or delayed. iii. Access roads or portions of access roads that are jointly used by Blue Chip and Lafarge or Livingston Leigh or both shall be thirty (30) feet in width. If Lafarge or Livingston Leigh improves or paves such joint-use roads for regular permanent or extended use, the party improving the roads shall construct or improve them so as to withstand the weight of oilfield equipment. - 5 - iv. New access roads or portions of access roads that are used exclusively by Blue Chip shall be thirty (30) feet in width, and Blue Chip shall install and maintain them to COGCC standards that apply to oil and gas operations. e. Lafarge and Livingston Leigh each agrees that it will not mine or extract materials from any portion of the access roads identified on Exhibit B, or those access roads that may be otherwise mutually agreed upon by the parties, without the written consent of Blue Chip. 6. Batteries and Equipment/Production Facility Locations/Electrical Service Lines. a. Blue Chip shall have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and other equipment ("Production Facility" or"Production Facilities") reasonably appropriate for the operation and production of Wells within the Oil and Gas Operations Areas locations depicted on Exhibit B ("Production Facility Locations.") b. With respect to any new Production Facilities other than flowlines and Pipelines constructed by Blue Chip: Blue Chip shall install and maintain, at its sole cost and expense, all fences around Wells and Production Facilities to the extent required by the Rules and Regulations of the COGCC. ii. Blue Chip shall install and maintain, at its sole cost and expense, all gates and locks reasonably necessary for the security of the Wells and Production Facilities, to the extent required by the Rules and Regulations of the COGCC. iii. Blue Chip shall paint production facilities for the Wells, including wellhead guards, with a color of paint that is approved by the COGCC, to the extent required by the Rules and Regulations of the COGCC. Neither Lafarge nor Livingston Leigh shall prevent or inhibit access by Blue Chip to the Oil and Gas Operations Areas and Production Facility Locations or prevent or inhibit Blue Chip's operations within the Oil and Gas Operations Areas or Production Facility Locations by landscaping or other improvements, unless otherwise agreed upon in writing between Lafarge, Livingston Leigh and Blue Chip. 7. Notice of Future Operations. Blue Chip shall provide at least seven (7) days prior written notice to Lafarge and Livingston Leigh of operations in connection with reworking, fracturing, deepening or recompletion operations on Wells; provided, however, Blue Chip shall provide at least thirty (30) days prior written notice to Lafarge and Livingston Leigh of the initial drilling of any new Well. Regardless of the foregoing notice requirements, Blue Chip shall have immediate access to all Production Facilities, Pipelines and Wells in the event of an emergency. After receipt of the above notice, but not less than five (5) working days prior to the date that Blue Chip plans to commence drilling operations within an Oil and Gas Operations Area, Blue Chip, Livingston Leigh or Lafarge may request an on-site meeting. The purpose of the meeting shall be for Blue Chip to inform Lafarge and Livingston Leigh of the proposed oil and gas drilling - 6 - operations and to coordinate site access, hazards, barricades, restoration or any other issues that may affect the use and development of the Property by Lafarge or Livingston Leigh. 8. Compliance with Safety Regulations. Blue Chip has been advised by Lafarge that the surface mining operations of Lafarge on the Property are subject to certain Mine Safety and Health Administration (`MSHA") regulations. Blue Chip agrees that, while conducting its oil and gas operations on Property, it will use reasonable efforts to comply and to cause its contractors and subcontractors to comply with MSHA requirements that Lafarge notifies Blue Chip are applicable to Blue Chip's operations on the Property. Lafarge shall notify Blue Chip of the MSHA requirements that are applicable to Blue Chip's operations within Lafarge's mining permit area. 9. Drilling And Completion Operations. Blue Chip shall endeavor to diligently pursue drilling operations to minimize the total time period for drilling and to avoid rig relocations or startup during the course of drilling. Lafarge and Livingston Leigh waive any objections to continuous (i.e., 24-hour)drilling operations. 10. Shut-In Of Wells. In connection with its operations on the Property wherein Lafarge or Livingston Leigh will utilize heavy equipment, Lafarge or Livingston Leigh, as applicable, shall maintain dirt coverage over Blue Chip's flowlines and pipelines as set forth in Section 4.e. above. In the event Lafarge or Livingston Leigh intends to commence construction activities where it will utilize heavy equipment or other equipment likely to damage any of Blue Chip's flowlines or pipelines which are not covered as set forth in Section 4.e., Lafarge or Livingston Leigh will notify Blue Chip at least twenty (20) days before commencement of said activities, in which event Blue Chip may, in its discretion and for safety purposes, shut in any pipeline or flowline over which Lafarge's or Livingston Leigh's heavy earth-moving equipment is to be operated. Further, Lafarge or Livingston Leigh may request Blue Chip to shut in one or more of its Wells, flowlines or pipelines during Lafarge's or Livingston Leigh's construction activity or. the Property. In the event that Lafarge or Livingston Leigh requests Blue Chip to shut in one or more of its Wells, flowlines or pipelines; or should Lafarge or Livingston Leigh interfere with the operations of Blue Chip on the Property so that Blue Chip, in its discretion, is required to shut-in one or more of its Wells, flowlines or pipelines or is otherwise prevented from repairing or returning a Well or Wells to production, the party's whose action caused Blue Chip to shut in shall, during the period of shut-in of any Well, pipeline or flowline, pay Blue Chip the following amounts for each shut-in: Shut-In Duration Fee per Well per Day 5 days or less None 6—or more $500 per day Lafarge or Livingston Leigh will also pay Blue Chip any costs to rework the well in order to place the well in production status after the shut-in and costs to replace pipelines and flowlines that are damaged by the surface construction activities of Lafarge or Livingston Leigh. - 7 - 11. Governmental Proceedings. Lafarge and Livingston Leigh each acknowledge the rights of Blue Chip to conduct oil and gas operations on the Property in accordance with this Agreement and shall not object to or oppose Blue Chip in any agency or governmental proceedings, including, but not limited to, the COGCC, Weld County, or other governmental entity related to the operations of Blue Chip on the Property, including, but not limited to drilling, workovers, well deepenings and recompletions; provided that, the position of Blue Chip in such proceedings is consistent with this Agreement. 12. Mining Plans. Lafarge has provided copies to Blue Chip of its Mining Permit and the engineering structural report prepared in connection with the Mining Permit (the "Plans"). Blue Chip acknowledges receipt of the Plans and does not object to the Plans. 13. Restricted Use Of The Surface By Blue Chip. Except for the Oil and Gas Operations Areas, Production Facility Locations, Petroleum Pipeline Easements, Pipelines and the access roads provided for in this Agreement, Blue Chip shall not occupy the surface of the Property, except in the events of an emergency or for reasonable incidental, temporary and non-damaging activities, for which Blue Chip shall be responsible for any damages that it causes that may occur to the Property. Blue Chip shall not have any right to enter upon or occupy the surface of portions of the Property outside of the Leased Premises in any event. 14. Limitation Of Liability, Release And Indemnity. a. No party shall be liable for, or be required to pay for, special, punitive, exemplary, incidental, consequential or indirect damages to any other party for activities undertaken within the scope of this Agreement. b. Except as to claims arising out of pollution or environmental damage (which claims are governed by Section 15 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement), each party shall be and remain responsible for its own liability for all losses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including without limitation, reasonable attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of or connected with each such party's operations on the Property, no matter when asserted, subject to applicable statutes of limitations. Each party shall release, defend, indemnify and hold the other party, its officers, directors, employees, successors and assigns, harmless against all such Claims. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement, other than the right to be indemnified for Claims as provided herein. c. Upon the assignment or conveyance of a party's entire interest in the Property, that party shall be released from the indemnification in Section 14.b. above, for all actions or occurrences happening after such assignment or conveyance. _ g _ 15. Environmental Indemnity. The provisions of Section 14 above, except for Section 14.a., shall not apply to any environmental matters, which shall be governed exclusively by the following, subject to the limitations of Section 14.a. above: a. "Environmental Claims" shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on the Property and all cleanup and remediation costs, fines and penalties associated therewith, including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of any remediation undertaken voluntarily by any party, unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party. b. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order of any governmental authority(ies), which relate to or otherwise impose liability, obligations, or standards with respect to pollution or the protection of the environment, including but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.), the Clean Air Act, and the Toxic Substances Control Act (15 U.S.C. §§ 2601-262 c. Environmental Indemnification. Blue Chip shall defend, indemnify and hold harmless Lafarge and Livingston Leigh and their respective successors and assigns, from Environmental Claims relating to the Property that arise out of Blue Chip's operations on the Property. Lafarge shall defend, indemnify and hold. harmless Blue Chip, its successors and assigns, from Environmental Claims relating to the Property that arise out of Lafarge's operations on the Property. Livingston Leigh shall defend, indemnify and hold harmless Blue Chip, its successors and assigns, from Environmental Claims relating to the Property that arise out of Livingston Leigh's operations on the Property. Notwithstanding the foregoing, each party shall be responsible for and shall protect, indemnify and hold harmless the other party and its officers, directors, employees, successors and assigns, from Environmental Claims arising out of damage caused by such party's own operations and activities on the Property (including, but not limited to, oil and gas operating activities, reclamation activities, road or line relocation, mining activities, onsite water storage and other surface uses) to the other parties' real or personal property, including but not limited to, any Environmental Claims arising out of damage to structures, wells, wellheads, Pipelines, utility lines, pits, liners, facilities or other equipment on the Property. 16. Exclusion from Indemnities. The indemnities of the parties herein shall not cover or include any amounts for which the indemnified party is actually reimbursed by any third party (other than the indemnified party's own insuror). The indemnities in this Agreement shall not relieve any party from any obligations to third parties. _ 9 _ 17. Notice of Claim For Indemnification. If a Claim is asserted against a party for which the other party would be liable under the provisions of Section 14 or Section 15 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of the Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within ten (10) days of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. An indemnifying party shall not be obligated to reimburse an indemnified party for amounts paid in settlement of an indemnified Claim unless the indemnifying party has agreed to the settlement, which agreement shall not be unreasonably withheld or delayed. 18. Representations. Each party represents that it has the full right and authority to enter into this Agreement with respect to the surface estate or leasehold interests or oil and gas leasehold interests it owns in the Property. 19. Successors and Assigns. The terms, covenants, and conditions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, successors and assigns for Blue Chip shall be limited to only those persons or entities which are assigned interests in the oil and gas leases issued in favor of Blue Chip. 20. Term. This Agreement shall become effective as of the date written above and shall remain in full force and effect until the latest to occur of the following: i) all of Blue Chip's oil and gas leasehold interests in the Property have expired or are terminated, and Blue Chip has plugged and abandoned all Wells it operates on the Property and complied with all reclamation and other requirements in its oil and gas leases and of the COGCC and other entities having jurisdiction; or ii) all of Lafarge's sand, gravel and aggregate mining leasehold interests in the Property have expired or are terminated (as to the portion of the Property leased by Lafarge), and Lafarge has complied with all reclamation and other requirements in its mining leases and Mining Permit and with all other applicable provisions in the mining leases, Mining Permit and state and local permits and rules and regulations. At the time this Agreement terminates, the parties shall execute releases that state that this Agreement no longer applies to the Property, except with respect to the indemnities in this Agreement, which indemnities shall survive termination to the extent provided herein. 21. Notices. Any notice or other communication required or permitted under this Agreement shall be given in writing by any of: i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered with certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: - 10 - Blue Chip: Lafarge: Blue Chip Oil, Inc. Lafarge West, inc. 155 E. Boardwalk Dr., Suite 400 10170 Church Ranch Way, Suite 200 Ft. Collins, CO 80525 Westminster, Colorado 80021 Attention: Tim Hager Attention: Director of Lands Livingston Leigh: Livingston Leigh Livestock of Weld County, LLC 4124 Spring Canyon Court Ft. Collins, CO 80525 Any party may, by written notice so delivered to the other parties, change the address or individual to whom delivery shall thereafter be made. 22. Recording. This Agreement and any amendments shall be recorded by Lafarge or Livingston Leigh, and Lafarge and Livingston Leigh shall provide Blue Chip with copies showing the recording information as soon as practicable thereafter. 23. Surface Damaoes; Waiver of Payments. In consideration of the respective rights, obligations and benefits of the parties as outlined herein, this Agreement shall constitute a surface use or surface damage agreement as described or provided for in any current or future rule or regulation of the COGCC or any local jurisdiction, state statute or at common law and in any oil and gas lease. In furtherance of the foregoing, Lafarge and Livingston Leigh expressly acknowledge that this Agreement satisfies the obligations and requirements of Blue Chip pursuant to COGCC rules and regulations and Colorado statutes to consult in good faith with Lafarge and Livingston Leigh regarding proposed oil and gas operations on the Property. Each party further expressly acknowledges that this Agreement shall be deemed to be specifically applicable to, and to satisfy fully, the obligation of the other to accommodate the party's use of the surface of the Property, existing and future and each party waives any statutory or common law claims to the contrary including, but not limited to, any claims pursuant to C.R.S. 34-60-127; provided, however, that neither party waives claims against the other arising from breach of this Agreement. Lafarge and Livingston Leigh hereby waive all surface damage payments or other such payments for the use of the Property or portions thereof pursuant to any current or future COGCC or local regulation, state statute, common law or oil and gas lease or agreement for each and every well and related wellsite that is or will be drilled and located within the Oil and Gas Operations Areas and for Production Facility Locations and Pipelines and Petroleum Pipeline Easements and access roads. Blue Chip may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. - 11 - 24. Construction. The parties have participated jointly in the negotiating and drafting of this Agreement. In the event ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including, without limitation. 25. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws provisions. 26. Entire Agreement. This Agreement sets forth the entire understanding between the parties regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except by written document signed by the parties. 27. Execution And Binding Effect. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same instrument. This Agreement is executed by the parties on the dates set forth in the acknowledgements, but to be effective on the date set forth above. BLUE CHIP OIL INC. By: Y� d_ C41a ci.1 (Title) LAFARGE WEST, INC. By. 41tiSH� LAM Sta yriyr (Title) - 12 - LIVINGSTON LEIGH LIVESTOCK OF WELD COUNTY, LLC By: (Title) Acknowledgments STATE OF COLORADO ) ) ss. COUNTY OF Lax t nne-r ) 9f. The Fo ng instrument was acknowledged bef a this I ( day of rov e./v n , 2008, by /A 44 0-14.,1 r Y6 cf,, , as sidr of Blue Chip Oil, Inc. on'behalf of sub corporation. Witness my hand and official seal. Notary Pu lb is U My Commission Expires: CiAA.S. 5 aD t . LORI KING Notary Public State of Colorado STATE OF COLORADO ) Wart . IG� ss. My commission expires Aug.5,2012 COUNTY OF I� ) cLThe fore 9oing 7 instru ant was Acknowledged before me this y of �1rCAr 2008, by Anne. 44'0hribd ) as Ca\cticLY of Lafarge West, Inc. Witness my hand and official seal. Notary Public My Commission Expires: /611zO1)--- BARBARA BRUNK NOTARY PUBLIC STATE OF COLORADO My Commission Expires 10/14/2012 - 13 - STATE OF COLORADO ) ss. COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2008, by as of Livingston Leigh Livestock of Weld County, LLC. Witness my hand and official seal. Notary Public My Commission Expires: - 14 - EXHIBIT A PROPERTY LIVINGSTON LEIGH PROPERTY Lot B, of Amended Recorded Exemption No. 0805-30-3-RE 1089, recorded July 6, 1994 in Book 1449 as Reception No. 02396108, being a part of the Southwest Quarter of Section 30, Township 6 North, Range 66 West and the East Half of the Southeast Quarter of Section 25 and the Northeast Quarter of Section 36, All in Township 6 North, Range 67 West of the 6'" P.M., County of Weld, State of Colorado. LAFARGE PROPERTY Lot B of Corrected Recorded Exemption No. 0805-30-3-RE-2870, recorded April 18, 2002 at Reception No. 2943958, being a part of the SW1/4 of Section 30, Township 6 North, Range 66 West of the 6th P.M., County of Weld, State of Colorado. II z 1 o 0 EXISTING I !j Y RESIDENCE w z \ (3) PROPOSED 16'O.C.TYP. z co GAS WELLS 01•••• immi-to.„ , 7 - " [30'WIDE ?% w 16 O.C. t7 y , ,. a - '•ataa a _� a a� aa.a a a a a a.aaa a. leo o it ` 1 .fi 1 r'• • I �I 3 ( ' \ al/ EXIST. : I I �ta .9�E I `�, ; FLOWLINE % o � to BLUE CHIP OIL•� '� x INC. SLOAN 3 EXIST.IGAS ,' I _ _ _ WELL (2) PROPOSEo I TANKS EXIST_, LIVINGSTON LEIGH 3 1 ! m I LIVESTOCK OF WELD TANKS II = COUNTY w I EXISTING I I WCR 25 R.O.W. z PIPELINE I EASEMENT w „II I I O o LEGEND: i_ w N � , ..,.> 30 PETROLEUM PIPELINE O EXISTING GAS WELL y""T' -ion."".I4 I4 EASEMENT AND ACCESS ROAD a 100' 0' 200' In EXISTING SEPARATOR s — DRILL WINDOWS • PROPOSED TANKS SCALE IN FEET o••.. OIL AND GAS OPERATIONS AREA 0 PROPOSED GAS WELL - -G- -EXISTING PETROLEUM PIPELINE LAFARGE WEST, INC. 3 • EXISTING TANK NE 1/4, SE 1/4, SEC. 25, T6N, o R67W, 6TH P.M, COUNTY OF z WELD, STATE OF COLORADO a Drawing Description Project No.: 80-4137.029.00 © TETRA TECH EXHIBIT "B" Date: 10-31-08 N OIL & GAS Designed By: www.tetratech.com OPERATION AREAS Sheet No. p 1900S.Sunset Street,Ste.1-F BLUE CHIP OIL, INC. 1 OF 1 i; Longmont,Colorado 80501 q PHONE:(303)772-5282 FAX'.(303)772-7039 LL rnn,rinht Tctre,Tcrh AMENDMENT TO SURFACE DAMAGE AND RELEASE AGREEMENT AND JOINDER This Amendment to Surface Damage and Release A reement and Joinder(this "Amendment") is made and entered into as of the ZZday of UL-CM$EL. , 2009, by and between Lafarge West, Inc. ("Lafarge")whose address is 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021, Livingston Leigh Livestock of Weld County, LLC ("Livingston Leigh"), whose address is 4124 Spring Canyon Court, Ft. Collins, CO 80525, and Petro-Canada Resources (USA) Inc., formerly known as Prima Oil &Gas Company ("Operator"), whose address is 999 18th Street, Ste 600, Denver, CO 80202, sometimes referred to each as a "Party,"or collectively as the Parties. Recitals Livingston Leigh and Lafarge collectively are the current landowners of those certain tracts of land more particularly described on Exhibit A attached hereto, located in Weld County, Colorado, their respective owned parcels being hereinafter referred to as the "Livingston Leigh Lands"and the"Lafarge Lands,"and collectively as the "Lands." Lafarge is the current lessee of the Livingston Leigh Lands under a sand, gravel and aggregate mining lease (the "Lafarge Lease"). Operator has leasehold interests covering portions of the Lands and has the right to develop its oil and gas leasehold estates by drilling and operating wells ("Wells") on the portions of the Lands so leased ("Leased Premises"), including those Wells depicted on Exhibit B attached hereto and incorporated by this reference. Lafarge and Operator are Parties to a certain Surface Damage and Release Agreement dated June 15, 2006 ("SUA") concerning the Lafarge Lands, pertaining to a single well within the Lafarge Lands, a copy of which is attached hereto as Exhibit C. Operator desires to drill additional wells within legal drilling windows located on the Lands. Lafarge and Operator desire to amend the SUA and for Livingston Leigh to join in the SUA, as so amended, to provide for the location of such additional Wells and their related Facilities, as defined in the SUA. Amendment and Joinder Now therefore, for and in consideration of the covenants and agreements in the SUA and this Amendment, Livingston Leigh joins in the SUA as a landowner Party and the Parties agree to amend the SUA in the following respects: 1. Terms defined in the SUA shall have the same meaning in this Amendment unless defined otherwise herein. 2. Any reference to Owner in the SUA shall mean Lafarge and Livingston Leigh or either of them, as the context may require. 3. Exhibit "A" to the SUA is replaced in its entirety by Exhibit B attached hereto, and the location of all Wells, Facilities and Access Roads, as defined in the SUA shall be governed by Exhibit B hereto. 4. Any reference to a Well in the SUA shall mean all of the existing and proposed wells depicted on Exhibit B. 5. Compensation set forth in Paragraph 5 of the SUA shall be paid to Lafarge for any Well on the Lafarge Lands and to Livingston Leigh for any Well on the Livingston Leigh Lands. 6. The SUA shall continue to apply as to all operations by Operator on the Lands as to the Wells and related Facilities and Access Roads, provided that the circular setbacks depicted on Exhibit B hereto shall supersede the area and dimensions for Well sites set forth in paragraph 3 of the SUA. 7. Except as otherwise set forth above, the SUA shall continue in full force and effect in accordance with its terms. Executed to be effective as of the date first set forth above. PETRO-CANADA E�RC�A) INC. By: L,yA 0 AN-rwNrto Agent for Petro-Canada Resources (USA) Inc. LAFARGE: LAFARGE WEST, INC. By: I kn4 AnnQte,/ (Title) LIVINGSTON LEIGH LIVESTOCK OF WELD COUNTY, LLC By: (Title) - 2 - STATE OF COLORADO ) )ss. COUNTY OF DEr"ven- ) The foregoing instrument was acknowledged before me this d)."d day of 0e-t,,.ae+- , 2009, by A-t o. AY-oNIo as agent for Petro-Canada Resources (USA) Inc. •rayed official seal. J pOTAq f ,P II^^ ,, ^^ 12 r C P /1j2C"Vi'W u},.• PUBLIC 00 /03 otary Public STATE OF COLORADO ) ��pp" " ) ss. COUNTY OFlt. k isO(1 ) The foregoing instrument was acknowledged before me this tilt day of :SAINA - , 2011$ by Anal�oitnsen as `And ry441h of Lafarge West, Inc. Witness my hand and official seal. �f7�LJ4w.Q` O : AOTAR y f / Notary Public - O : ` OE (311� 01O = PUB��G 'O My Commission Expires: �' ,.,,..... 9TFOFCOO\' STATE OF COLORADO ) ss. COUNTY OF The foregoing instrument was acknowledged before me this_day of , 2009, by as of Livingston Leigh Livestock of Weld County, LLC. Witness my hand and official seal. Notary Public My Commission Expires: - 3- EXHIBIT A LANDS LIVINGSTON LEIGH LANDS LEGAL DESCRIPTION A PARCEL OF LAND LOCATED IN THE EAST HALF OF THE SOUTHEAST QUARTER OF SECTION 25 AND THE NORTHEAST QUARTER OF SECTION 36, BOTH IN TOWNSHIP 6 NORTH, RANGE 67 WEST AND THE SOUTHWEST QUARTER OF SECTION 30, TOWNSHIP 6 NORTH, RANGE 66 WEST ALL IN THE 6T" P.M., COUNTY OF WELD, STATE OF COLORADO AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: LOT B, OF AMENDED RECORDED EXEMPTION NO. 0805-30-3-RE 1089, RECORDED JULY 6, 1994 IN BOOK 1449 AS RECEPTION NO. 02396108, SAID PARCEL CONTAINS 91.316 ACRES. LAFARGE LANDS LEGAL DESCRIPTION LOT B OF CORRECTED RECORDED EXEMPTION NO. 0805-30-3-RE-2870, AS RECORDED IN THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER AS RECEPTION NO. 2943958 ON APRIL 18, 2002, BEING PART OF LOTS ONE (1) AND TWO (2) OF THE SOUTHWEST QUARTER (SW1/4) OF SECTION 30, TOWNSHIP 6 NORTH, RANGE 66 WEST OF THE 6TH PM., COUNTY OF WELD, STATE OF COLORADO. SAID DESCRIBED PARCEL OF LAND CONTAINS 87.837 ACRES MORE OR LESS AND IS SUBJECT TO ANY RIGHTS OF WAY OR OTHER EASEMENTS AS GRANTED OR RESERVED BY INSTRUMENTS OF RECORD OR AS NOW EXISTING ON SAID DESCRIBED PARCEL OF LAND. EXHIBIT B WELLS, FACILITIES AND ACCESS ROADS 5; , '',',i .ur a a. I 9i----__ 0 m - , 5mc73 - � 1 ' ll r. rz03 D CSI 0 } ' r7. ..._ . . I • �, ' 'I . o ), - - „I- I:I ; o c1i A�gd a AI O = 3 ;`: 6 ;E A o • a z ,,, f .:;a ; �: F1! D Z o Phi :,• ▪ a3 , #9 6�, ::�.� 3M P 1 . xom I ` nzo ,. D m Z• mm D O 23 - "Oj U m3 fil y r 2 z - o m -1 ci g CI)A lis Z 0 — 0 f co 0 m Z eA ?; a n C 3m 3a C Crr e° F m N < 3; 1 - - gg gg 9 DZm - a g i ARM!. 3 3 a Z m a t v p$ z I e r Z m • i 1i li ail 3 3 = e 3H , ns3y ��i'E a - - a a 9 ;MPE b Ian rR ill Z i i gi Ii 6 O D L. 4 a71 � � e r NE,,.. as Q TETRA TECH (p PETRO CANADA RESOURCES ry5A)NC ! OIL&GAS OPERATIONS EXHIBIT C SURFACE DAMAGE AND RELEASE AGREEMENT DATED JUNE 15, 2006 SURFACE DAMAGE AND RELEASE AGREEMENT This Surface Damage and Release Agreement("Agreement")is made and entered into this 15th day of June, 2006,by and between Lafarge West, Inc.("Owner"),and Petro-Canada Resources(USA)Inc.,formerly known as Prima Oil&Gas Company("Operator");sometimes referred to each as a"Party,"or collectively as the"Parties." WITNESSETH: For and in consideration of the covenants and agreements contained herein,and for other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the Parties agree as follows: 1. OWNERSHIP. Owner is the surface owner of certain lands located in Weld County,Colorado as more specifically described as follows("Lands"): Township 6 North,Range 66 West,6'k P.M. Section 30:Part of the W/2SW/4 Operator owns a working or operating interest in an oil and gas lease or leases covering all or portions of the Lands or lands pooled or included in a spacing unit therewith(each a"Lease,"collectively,the"Leases"). 2. OPERATOR'S OIL AND GAS OPERATIONS ON THE LANDS. Operator may drill or cause to be drilled an oil and/or gas well on.the Lands("Well"). In order for Operator to drill,construct,complete,produce, maintain,and operate the Well and all facilities associated therewith,including,but not limited to,access roads("Access Roads"),pipelines,flow lines,separators,tank batteries,electric lines and any other facilities or property necessary for Operator to conduct operations on the Well(each a"Facility"collectively,the"Facilities"),it is necessary that Operator enter and utilize a portion of the surface of the Lands. The Parties enter into this Agreement to evidence their entire agreement regarding the payment of surface damages,entry,surface use,and any other matters relating to Operator's use of the Lands. 3. LOCATION. The approximate location of the Well,the Access Roads to the Well site and certain other Facilities to be constructed on the Lands are depicted on Exhibit"A." Any material changes to such locations may be made by Operator with the consent of Owner,which will not be unreasonably withheld,but will not unduly interfere with Owner's existing use of the surface estate. Operator agrees not to use any more of the surface of the f muck than is reasonably necessary to conduct its operations;provided,however,that each Well site will not exceed 1.75 acres,or 230 feet by 330 feet in area,absent written consent from the Owner. 4. CONDUCT OF OPERATIONS. Operator's operations on the Lands will be conducted pursuant to the terms of the Leases,this Agreement,lawful local governmental ordinances,resolutions or permits and the rules and regulations of the Colorado Oil&Gas Conservation Commission("COGCC"). 5. COMPENSATION AMOUNT. Operator will pay Owner the sum of$5,000 per Well location and the associated Facilities, prior to the commencement of actual drilling operations ("Amount"). The Amount is hereby • acknowledged by Owner as full and final consideration for Operator's use of the Lands for the purposes enumerated in this Agreement and for any and all damages caused or created by reason of the reasonable and customary ingress,egress, rights-of-way,drilling,completion,production and maintenance operations associated with the Well and Facilities. Such damages will include, without limitation, damage to growing crops,cropland, the removal, transportation and care of livestock,re-seeding,construction and use of Access Roads and the preparation and use of the Well site areas;provided, however, that if after the initial drilling, completing and equipping of the Well and Facilities for production, Operator commences subsequent operations thereto, including,but not limited to, re-fracturing operations on the Well, and such operations result in additional crop losses on the Lands affected thereby, operator will timely reimburse Owner for the actual net value of such loss.If by reason of the activities of the Operator,including,but not limited to,drilling,completing, Page I of 5Error!Bookmark not defined. equipping,and operating of the Well,there is unanticipated damage to personal property or improvements of the Owner, including, but not limited to, irrigation Well, fences, culverts, bridges,pipelines, ditches, or irrigation systems,Operator will repair or replace such items after consultation with and to the reasonable satisfaction of the Owner. Owner will notify Operator of any items damaged after the Well's construction and Operator will repair or replace such items after consultation with the Owner within 15 days of occurrence.The fixed Amount does not cover damage caused by Operator's negligent performance of operations on the Lands. 6. ADDITIONAL SURFACE USE PROVISIONS, ACCESS ROADS, FENCES AND FACILITIES. With respect to its operations on the Lands,Operator will comply with the following provisions: A. Access Roads: (i) Access Roads will not exceed 20 feet in width. (ii) Operator will take reasonable steps to insure that all of its vehicles accessing the Lands on its behalf remain on the Access Roads by installing a temporary fence if applicable. (iii) Operator will provide Owner with a minimum of 10 days prior written notice before restoring the surface of all Access Roads to be permanently abandoned by Operator. No later than 10 days following receipt of such notice, Owner may elect, in writing, not to have such Access Roads abandoned by Operator. In such event,Operator will have no liability under this Agreement,the Lease, or otherwise,to restore the surface of the Lands utilized as Access Roads. Failure to timely respond will be deemed as Owner's election that Operator proceed with the abandonment of the Access Roads and the restoration of the surface thereof. (iv) Operator will stockpile and save any topsoil removed while constructing Access Roads for rehabilitation or re-seeding as reasonably directed by Owner. (v) Operator will maintain all Access Roads in good repair and condition. B. Fences: (i) Owner may request that Operator install fences and livestock guards on the Lands. If installed,all such fences and livestock guards will be maintained in good condition by Operator,and upon termination of this Agreement,will become the property of Owner. (ii) During drilling operations, Operator will install a temporary fence around the perimeter of the well site. (iii) Surface Restoration: Upon permanent cessation of Operator's operations on the Lands,all areas thereof occupied or utilized by Operator will be restored by Operator to their original contour as nearly as is reasonably practicable,and re-seeded if so requested by Owner;provided however,that Operator's intent o abandon any Access Roads will be subject to the provisions of Paragraph 6(A)(iv)herein C. Other. Cl) Operator will install culverts on the Lands that may be necessary to maintain present drainage and irrigation otherwise affected by its operations on the Lands. Page 2 of 5 (ii) If by reason of the activities of the Operator,including,but not limited to,drilling, completing,equipping,and operating of the Well,there is unanticipated damage to personal property of the Owner,including,but not limited to,irrigation Well,fences,culverts,bridges,pipelines,ditches,or irrigation systems,Operator will repair or replace such items after consultation with and to the reasonable satisfaction of the Owner. Owner will notify Operator of any items damaged afterthe Well's constriction and Operator will repair or replace such items after consultation with the Owner within 15 days of occurrence. (iii) Operator agrees that all trash, refuse pipe, equipment, liquids, chemicals,or other materials brought on the Lands that are not necessary for continued operations of the Well will be removed and disposed away from the Lands including bentonite dug up during pit excavation no later than 30 days after the completion of the Well. No such items will be burned or buried on the Lands. 7. DEFAULT AND RIGHT TO CURE. In the event of alleged default by Operator in the payment of any of the sums hereinabove provided to be made, in obligations to be performed, or any other terms,conditions or covenants of this Agreement,Owner will notify Operator,by certified mail, return receipt requested,of the alleged default. Operator will have 30 days from receipt of the written notification in which to dispute or otherwise respond to the notification before Owner may allege default. Except as otherwise agreed in writing, no waiver by Owner of any breach by the Operator of any of its obligations,agreements,or covenants hereunder will be deemed to be a waiver of any subsequent or continuing breach of _ the same,nor will any forbearance by Owner to seek a remedy for any breach by the Operator be deemed to be a waiver by Owner of its rights or remedies with respect to such breach;however,in no event will Operator be liable for additional payment for reasonably anticipated damages to the Lands caused by Operator's oil and gas operations,and in no event will Operator be liable for consequential damages. 8. INDEMNITY/RELEASE. Operator agrees to indemnify and hold Owner harmless from any and all claims,damages and causes of action arising out of and caused by Operator's operations on the Lands that may be asserted by any of Operator's agents,employees,subcontractors,contractors or persons entering upon the Lands at the request of Operator or by any governmental authority or other third party for injury or damage that arises directly from Operator's operations on the Lands. Such indemnity shall include but not be limited to Owner's reasonable costs and attorneys fees in defending against any such claims,damages and causes of action. 9. WAIVER OF 30-DAY NOTICE. Owner hereby waives the minimum 30-day written notice requirement for operations to begin and any other notice or consultation requirements of the COGCC. Without waiving the foregoing, Operator agrees it will provide an initial notice to Owner after it has submitted a request for permit to drill from the COGCC. 10. NOTICE FOR ADDITIONAL OPERATIONS. Operator will comply with COGCC rules and regulations requiring that advance notice be provided to Owner for subsequent operations on the Well,including,but not limited to,reworking operations thereto. 11. NOTICES. Notice by either Party will be promptly given,orally if possible(with the exception of the default notice described in Paragraph 7), with subsequent written confirmation sent by United States mail, postage prepaid and addressed to either Party at the address as designated below;or to such other place as either Party may from time to time designate by notice to the other: Owner Operator Lafarge West,Inc. Petro-Canada Resources(USA)Inc. 10170 Church Ranch Way Suite 200 Attention: Edward L.McLaughlin Westminster,CO 80021 1099 18th Street,Suite 400 (303)657-4000 Denver,CO 80202-1904 Phone: (303)297-2100 Fax: (303)297-7708 Page 3 of EXHIBIT "A" Township: 6 North, Range 66 West, 6th P.M. Section 30: All 1„�t++a-rt` � yx .er,A�.,.�'" �Y {p Y•iii r 'R It +:.�. F a.: ..:;. `,:�F n*'..s✓...:'� «A ;�3 tr" rC 'r6 , ry 19 s s c?1K„✓. "1•I CR66 _ ./ xt�ro rS "JM 4 A. My 2 S 1� ` 14 ,Y .. ,X �L • i;1". iL y ,J , A . J q 1 1� '----"' ' ' �-ice,} 4 -,:.,'„t:-,A.:4, °"'i e �` - 9' } MJ .� ,1 } 1•L.; •- .' ' ' H, :r .. , � ii 1:., {. 1, F °acs: 1 _ Fs f rf � 2 y � . �E 4 tl i i i E� r ;-e— f F , i 4. '4,r'', 7 f l �� k T rr VIM1`�'Is ,sz�rs 1e� 3` is " ` -I CR 27 , • f —.�5 J�f-t 154• ^. r z r �o r '4 ry c -r {t m 'vr r %.� .'g C �e '"a. Fr f eh_.Y) f•4,-,. nr r- * . t '1 �: h.g 4�� < �11f ,.��LT s L F ias �' TIF -_, .a. � t ry L:. 3 { x ys �, is �w@r ;k � it CR645 • '� „� ,29 _ Y Y:::-; 2$... . i �� Sd r•,":P",::: ,.M1� � . Q _ �,hs p IY (> ,I-44 t �.�.t Q 3; d iY 4' .. -P y.�h� \ i Lt w En+.i5hre� r .y (r"."1 ! ! k4 -f :?1" ...� t *,:1'>�+ � �k 4.b..+ q , e .e- + , -_ P 1r "yp' ₹! Lr F t s c,� Well Site Y t P Y i l CR25 v -s' �71 f 4 -',-,. "s 225 Sol Center sr ', a'w-�n&e.rf tn� ₹' (� �'+'' -*7-1-. " ' , e -f h.` s+ 390 W of Center .s i' s x x t h x _ y r I *�€ Ca r se r Sv ?Li" YaMM- i - i'cnF,Fi n "- l °'s `s\- t -.. t : ��'i�#f'� ty - �r ' �'' ` rz. �a FiiR .n s+a t ...Er ..,,,,ii- -. � �w-f' -� m i�r ,. Ebsling Tank _ r a x f r Jam"@ ,� li s :r' Y '-'?,s ASS �' 'oan), 1 - .^� , �r,.,a s 3,1} rid f4 1 10Ytl CYYeH.Csk •''`d4 yu °f .... . , _.�_, ... ;_L�..■$.�:s,Q14,:... ge.00 .FF St Access Road Flow Line Tank Battery . DITCH/IRRIGATION AGREEMENT There are no irrigation ditches within the boundary of the Parsons Mine;just ditch laterals. The Whitney Ditch is adjacent to the site within the County Road 64/ right-of-way. We have met with the President of the Whitney Ditch Company to confirm this. If needed, we will obtain an agreement with the Whitney Ditch Company to release water into their ditch. Parsons Mine Weld County Special Review Application Page I of I DITCH/IRRIGATION AGREEMENT There are no irrigation ditches within the boundary of the Parsons Mine;just ditch laterals. The Whitney Ditch is adjacent to the site within the County Road 64%z right-of-way. We have met with the President of the Whitney Ditch Company to confirm this. Lafarge will obtain an agreement with the Whitney Ditch Company to release water into their ditch. Lafarge acknowledges that the County Staff will require at least a Memorandum of Understanding from the Whitney Ditch prior to scheduling the public hearings associated with this application. Parsons Mine Weld County Special Review Application Pagel of i TEMPORARY SUBSTITUTE WATER SUPPLY PLAN Attached please find a letter from Richard Raines with Applegate Group, Inc. regarding the Temporary Substitute Water Supply Plan. Parsons Mine Weld County Special Review Application Page 1 of I ra Applegate Group, January 14, 2008 Mr. Eric Reckentine Northern General Manager Lafarge West, Inc. 1800 North Taft Hill Road PO Box 2187 Fort Collins, CO 80522 Re: Short and Long-term Augmentation of the Parsons Mine Dear Eric: Per your request, Applegate Group, Inc. summarized the water rights available to Lafarge West, Inc. (Lafarge)to meet the short and long-term augmentation requirements of the Parsons Mine. Substitute Water Supply Plan and Gravel Well Permit Application The projected starting date for the Parsons Mine is 2010. Lafarge will submit a Substitute Water Supply Plan (SWSP) for the site to the State Engineer's Office (SEO) nine months to one year prior to the start of mining. Lafarge owns 12 Whitney Ditch shares and has a lease for five additional shares historically used on the property as a future source of augmentation water during mining. Since mining is several years away, Lafarge will keep the Whitney Ditch shares in irrigation to maintain the historic consumptive use of these water rights until they are needed for augmentation. Lafarge also owns other water rights such as 8.5 Box Elder Ditch shares and 550 Boyd and Freeman Ditch shares in this reach of the Poudre River Basin. These water rights are currently used to augment other active mining sites, but could also be used in the future to augment the Parsons Mine. Lafarge's water right portfolio in this reach of the Poudre River can augment the Parsons Mine during mining and after reclamation. Lafarge will also complete the required 600-foot well inspection with the water commissioner and submit the required gravel pit well permit application to the SEO. Lafarge will not expose groundwater at the Parsons Mine until both the SWSP and well permit are approved by the SEO. Long-term Augmentation A water court application for a long-term plan for augmentation will be filed three years prior to the completion of mining as required by the SEO. Lafarge will identify which water rights in its portfolio will be included in the plan for augmentation as Lafarge reaches the end of mining. The decreed plan for augmentation will replace all stream depletions from evaporation of the unlined lakes after reclamation. 1499 West 120th Avenue,Suite 200 (303)452-6611 •Fax(303)452-2759 Denver,Colorado 80234-2759 www.applegategroup.com Mr.Eric Reckentine RE:Parsons Mine Augmentation January 14, 2008 Page 2 of 2 If you have any questions or need further information, please do not hesitate to contact me at (303)452-6611 ext. 214 or richardraines@applegategroup.com. Cordially, Applegate Group, Inc. /6,1Y- -77-Z:e-d Richard T. Raines,P.H. Senior Water Resource Specialist RTR/ta cc: Pam Hora,TetraTech AG File No. 05-105 N:\05105 Lafarge Water Planning\Disciplines(Technicaf)\Water Rights\Parsons Ptvy.-rty\ltr EReckentine County LIRS-Parsons Augmentation 1.14.0S.doc HISTORICAL AND ARCHAEOLOGICAL RECORDS The Colorado Historical Society Office of Archaeology and Historic Preservation performed a search of their records for the Parsons Mine site. The search of their records determined that portions of the Parsons Mine site were included in two different surveys performed by others in the past. Based on the results of these two surveys, no significant sites were identified on the portions of the Parsons Mine site that were surveyed. A letter from the Colorado Historical Society Office of Archaeology and Historic Preservation summarizing these findings along with a print of the survey data are attached. Parsons Mine Weld County Special Review Application Page I of I COLORADO HISTORICAL SOCIETY Office of Archaeology and Historic Preservation 1300 Broadway Denver, Colorado 80203 January 10, 2008 Tetra Tech EM Inc. Pam Hora 1900 S Sunset St.,Suite 1-F Longmont,CO 80501 Re: Parsons Mine #133-4137.-029.00 Task 01.05 File Search No. 14522 (TetraParsons-sy) At your request,the office of Archaeology and Historic Preservation has conducted a search of the Colorado Inventory of Cultural Resources for the following locations: P.M. Township Range Section 6th 6N 66W 30 (SW) and 31 (NW) 6th 6N 67W 25 (SE)and 36(NE) 0 sites and 2 surveys were located in the designated area(s). If information on sites in the project area was found,detailed information follows the summary. If no sites or districts were found, but surveys are known to have been conducted in the project area, survey information follows the summary. We do not have complete information on surveys conducted in Colorado,and our site files cannot be considered complete because most of the state has not been surveyed for cultural resources. There is the possibility that as yet unidentified cultural resources exist within the proposed impact area. Therefore,in the event there is Federal or State involvement,we recommend that a professional survey be conducted to identify any cultural resources in the project area,which are eligible to be listed in the National Register of Historic Places. We look forward to consulting with you regarding the effect of the proposed project on any eligible cultural resource in accordance with the Advisory Council on Historic Preservation Procedures and the Preservation and Protection of Historic and Cultural Resources(36 CFR 800). Please provide this office with the results of the cultural resource survey for our review of professional adequacy and compliance with regulations. If you have any questions,please contact the Office of Archaeology and Historic Preservation at(303) 866-3395 or 3392. Thank you for your interest in Colorado's cultural heritage. Susan M. Collins Deputy State Historic Preservation Officer for Archaeology *Information regarding significant archaeological resources is excluded from the Freedom of Information Act. Therefore, legal locations of these resources must not be included in documents for public distribution. p ppp eeee ttttt eeee r rrr ssss poop n non once e t e e rr r s s o o nn n p p eeeeee t eeeeee r ss o o n n p p e t e r ss n o n n none a t t e er s so On n p ppp eeee tt eeee r ssss pope n n D U UN NK K U UNN NK K U UNN NK K U UN N NK K U UN NNKt U UN NN KKK U UN N K K U UN N K K UUUUU N NICK t ssss ii ttttt eeee ssss s s i t e es s ss i t eeeeee ss ss i t e ss s s i t t e es s ssss iii tt eeee ssss Spool job id: usp00182 Account nate: Peterson User task id: UNK Date printed: Thu Jan 10 06:29:26 2008 L.. 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OCC C.O =r 00000 CO0) 000000 C/CO 99 a 9 JCa 0'0Q a al .'t I a 06 a a a 0 0 o _ CH 0 ~ Q I <.)J a= x } I.— V xLLJ=W0 .Qe 0—a 00 4: D OI 4i O aC.— ! u 0 ] L9 0 J?' 0 Q C4 WQ a^i� as W yxrr STATE OF COLORADO DIVISION OF RECLAMATION,MINING AND SAFETY Weld County Planning Department Department of Natural Resources GREELEY OFFICE .13 Sherman St., Room 215 Denver,Colorado 80203 APR 15 2008 nOLORADO Phone:(303)866-3567 FAX:(303)832-8106 RECEIVED Bill Ritter,it Governor Notice of 112 Construction Materials Reclamation Permit Application Consideration Harris D.Sherman Executive Director Ronald W.Cattany Division Director Natural Resource Trustee DATE: April 14,2008 TO: Monica Mika-Daniels Weld County Planning Department Planning Director 918 10th St Greeley,CO 80631 FROM: Peter S. Hays, Environmental Protection Specialist 1M t Sot 4SN RE: Lafarge West, Inc.,Parsons Mine,File No. M-2007-088 Please be advised that on April 14, 2008, Lafarge West, Inc., whose address and telephone number are 1800 North Taft Hill Road , Fort Collins, CO 80521; (970) 407-3620, filed an application to conduct Surface extraction of construction materials and reclamation, at or near Section 36, Township 6N, Range 67W, 06th Prime Meridian, in Weld County. Please be advised that the permit area may be located in more than one Section, Township, and Range. The application decision is scheduled for July 13,2008. A copy of the application is available for review at the Weld County Clerk & Recorder's office and at the office of the Division of Reclamation, Mining and Safety, Room 215, 1313 Sherman Street,Denver, Colorado 80203. If you desire to make comments or objections, they must be submitted within twenty (20) days of the date of the last newspaper public notice to be considered in the application review process by the Division. You should contact the applicant for the newspaper publication date. If we do not receive your comments or any objection by the end of the public comment period,the Office will assume you have no objection or comment to the proposed activity. Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines Weld County Planning Department ^•mlimms GREELEY OFFICE lbTETRA TECH MAR 2 0 7nn8 • RECEIVED March 11, 2008 Weld County Via Hand Delivery Clerk to the Board of County Commissioners 915 10ei Street Greeley, CO 80631 RE: Parsons Mine, 112 Reclamation Permit Application, DRMS File/Permit No. M-2007-088 Dear Clerk: Attached please find a copy of a cover letter and some attachments requested by the Division of Reclamation, Mining and Safety that pertains to the Parsons Mine,112 Reclamation Permit Application, DRMS File/Permit No. M-2007-088. These documents were requested by the DRMS for submittal prior to their commencement of a technical review of the application. Please file these documents with the copy of the Parsons Mine Application that we provided you on December 19, 2007. As proof that you have received these documents, please sign and time and date stamp below. Thank you for your assistance. Sincerely, TETRA TECH �—/J�/J Pamela Hora, AICP Senior Planner Attachments This is to certify that the above referenced documents for the Parsons Mine DBMS application were hand delivered to the Weld County Clerk to the Board of County Commissioners to be kept on file for public viewing. Certification: The above mentioned cover letter and attachments were received by: .._ -'I,( f�W-2Bn Weld unty Clerk to the Board of County Commissioners Time and Date Stamp Here: 1900 5.Sunset Street,Suite I-F Longmont,CO 80501 rpH\e137 oziNoams \Clerk « letter anea .ac,cover doc Tel 303.772.5282 Fax 303772.7039 wwwtetratech.com BuGII9,/iCTAD 00 f. 4) 3 Ezi TETRA TECH March 11, 2008 Weld County Via Hand Delivery Clerk to the Board of County Commissioners 915 10th Street Greeley, CO 80631 RE: Parsons Mine, 112 Reclamation Permit Application, DRMS File/Permit No. M-2007-088 Dear Clerk: Attached please find a copy of a cover letter and some attachments requested by the Division of Reclamation, Mining and Safety that pertains to the Parsons Mine,112 Reclamation Permit Application, DRMS File/Permit No. M-2007-088. These documents were requested by the DRMS for submittal prior to their commencement of a technical review of the application. Please file these documents with the copy of the Parsons Mine Application that we provided you on December 19, 2007. As proof that you have received these documents, please sign and time and date stamp below. Thank you for your assistance. Sincerely, TETRA�TECH 79/471,66- 1 Pamela Franch Hora, AICP Senior Planner Attachments This is to certify that the above referenced documents for the Parsons Mine DRMS application were hand delivered to the Weld County Clerk to the Board of County Commissioners to be kept on file for public viewing. Certification: The above mentioned cover letter and attachments were received by: Weld County Clerk to the Board of County Commissioners Time and Date Stamp Here: H w u7 o2I yams commcnatclerk and accords cover lamcdoc 1900 5 Sunset Street,Suite I-F 1_ongmont,CO 80501 Tel 303.772.5282 Fax 303 772 wwwtetratech.cam VECCHI &ASSOCIATES, LLC URBAN PLANNING & DESIGN P O.Box 1 175 Longmont,co 80502-I 175 Phone 303-774-0173 Fax 303-774-0173 VecchiAssociates@comcast.net March 4, 2008 Mr. Peter Hays Colorado Division of Reclamation, Mining and Safety 1313 Sherman St., Room 215 Denver, Colorado 80203 RE: Parsons Mine,File No. M-2007-088, (112 Construction Materials Reclamation Permit) Dear Peter: On behalf of Lafarge West, Inc., I am responding to your letter dated January 14, 2008 pertaining to the additional items needed prior to commencement of your technical review. Attached you will find the following items: APPLICATION FORM Attached is a new application form with the operator name consistent throughout the application. EXHIBIT N-Source of Legal Right to Enter (Rule 6.4.14) 1. Attached is a copy of the Lease to Lafarge West Inc. to mine gravel in Section 36 with the Colorado State Board of Land Commissioners. In addition, attached is a revised copy of Exhibit C;the lease area is indicated on Sheet I of the Exhibit. 2. Attached is a signed statement by landowner, Dr. Sally Parsons, acknowledged by a Notary Public stating the applicant has legal right to enter and mine. EXHIBIT R—Proof of filing with County Clerk and Recorder(Rule 6.4.18) Attached is a signed and dated receipt indicating that the Parsons Mine application was placed with the local County Clerk and Recorder on December 19, 2007. With these additional items addressed, the application should be complete. Please contact me once you consider the application submitted or if you have any questions. Thank you for your consideration. Sincerely, VE CHI&ASSOCIATES, LC • e 'fer E. /ecchi,AICP .ncipal Attachments cc: Eric Reckentine STATE OF COLOIADO DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources 1313 Sherman St.,Room 215 nOLORA Denver,Colorado 80203 Phone:(303)866-3567 CONSTRUCTION MATERIALS FAX:(303)832 8106 REGULAR(112)OPERATION RECLAMATION PERMIT APPLICATION FORM 65 Omens Governor CHECK ONE: X There is a File Number Already Assigned to this Operation Russell George Permit It M Q007-088 -, (Please reference the file number currently assigned to this operafii5fl)°"°Ire<t°r X Ronald W.Cattan' New Application(Rule 1.4.5) Amendment Application(Rule 1.10) Division Director Conversion Application(Rule 1.11) Natural Resource Trustee Permit 1t M - - (provide for Amendments and Conversions of existing permits) The application for a Construction Materials Regular 112 Operation Reclamation Permit contains three major parts:(1)the application form;(2)Exhibits A-S,Addendum 1,any sections of Exhibit 6.5(Geotechnical Stability Exhibit;and(3)the application fee. When you submit your application, be sure to include one (1) complete signed and notarized ORIGINAL and one(1)copy of the completed application form,two(2)copies of Exhibits A-S,Addendiun 1,appropriate sections of 6.5(Geotechnical Stability Exhibit,and a check for the application fee described under Section(4)below. Exhibits should NOT be bound or in a 3-ring binder;maps should be folded to 8 1/2"X 11"or 8 1/2"X 14"size. To expedite processing,please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly,in the space provided,ALL information requested below. 1. Applicant/operator or company name(name to be used on permit2: _Lafarge West,Inc. 1.1 Type of organization(corporation,partnership,etc.): corporation 2. Operation name(pit,mine or site name): Parsons Mine 3. Permitted acreage(new or existing site): 381+ permitted acres 3.1 Change in acreage(1-) 0 acres 3.2 Total acreage in Permit area 381+ acres 4. Fees: 4.1 New Application $2,344.00 application fee 4.2 New Quarry Application $2,906.00 quarry application 4.4 Amendment Fee $1,938.00 __ amendment fee 4.5 Conversion to 112 operation(set by statute) .J2 344.00 conversion fee 5. Primary commoditie(s)to be mined: Sand gravel fill 5.1 Incidental commoditie(s)to be mined: 1. gold/less than 1 Ibs/Tons/fl 2. _ / ...-ibsiJonslyr 3. / lbstrons/yr 4._ i lbsiTonsfx 5. / Ihs/Tonslyr 5.2 Anticipated end use of primary commoditie(s)to be mined: construction materials 5.3 Anticipated end use of incidental commoditie(s)to be mined: n/a Office of Office of Mined Land Reclamation Active and Inactive Mines -2- 6. Name of owner of subsurface rights of affected land: refer to Exhibit O If 2 or more owners,"refer to Exhibit O". 7. Name of owner of surface of affected land: refer to Exhibit O 8. Type of mining operation: X Surface Underground 9. Location Information: The center of the area where the majority of mining will occur: COUNTY: Weld PRINCIPAL MERIDIAN(check one): X 6th(Colorado) 10th(New Mexico) Ute SECTION(write number): S 36 TOWNSHIP(write number and check direction): T 6 X North South RANGE(write number and check direction): R 67 East X West QUARTER SECTION(check one): X NE NW SE SW QUARTER/QUARTER SECTION(check one): X NE NW _SE SW GENERAL DESCRIPTION:(the number of miles and direction from the nearest town and the approximate elevation): 1/4 mile East of Windsor with an approximate elevation of 4730 feet 10. Primary Mine Entrance Location(report in either Latitude/Longitude OR UTM): Latitude/Longitude: Example: (N) 39° 44' 12.98" (W) 104° 59' 3.87" Latitude(N): deg 40 min 27 sec 28 85 (2 decimal places) Longitude(W): deg 104 min 49 sec 42 35 (2 decimal places) OR Example: (N) 39.73691° (W) -104.98449° Latitude(N) (5 decimal places) Longitude(W) _ (5 decimal places) OR Universal Tranverse Mercator(UTM) Example: 201336.3 E NAD27 Zone 13 4398351.2 N UTM Datum(specify NAD27,NAD83 or WGS 84) Zone Fasting Northing -3 - I I. Correspondence Information: APPLICANT/OPERATOR (name,address,and phone of name to be used on permit) Contact's Name: Eric Reckentine Title: Area Manager,N.Colo.Agg.Div. Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hill Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: ( 970 )- 407-3620 Fax Number: ( 970 )_ 407-3900 PERMITTING CONTACT (if different from appIicant/operator above) Contact's Name: Jennifer Vecchi Title: Project Manager Company Name: Vecchi&Associates,LLC Street/P.O.Box: P.O.Box: 1175 City: Longmont State: Colorado Zip Code: 80502-1175 Telephone Number. ( 303 )- 774-0173 Fax Number: ( 303 )_ 774-0173 INSPECTION CONTACT Contact's Name: Eric Reckentine Title: Area Manager,N.Colo.Agg.Dix Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hill Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: ( 970 )- 407-3620 Fax Number: ( 970 )- 407-3900 CC: STATE OR FEDERAL LANDOWNER(if any) Agency: Street: City: ----- State: Zip Code: Telephone Number: ( )- CC: STATE OR FEDERAL LANDOWNER(if any) Agency: Street: City: State: --____-- Zip Code: Telephone Number: L____- )- —_ ---- — -- -4- 12. Primary future(Post-mining)land use(check one): Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(FR) Wildlife Habitat(WL) Residential(RS) Recreation(RC) Industrial/Commercial(IC) Developed Water Resources(WR) Solid Waste Disposal(WD) 13. Primary present land use(check onel: Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(FR) Wildlife Habitat(WL) Residential(RS) Recreation(RC) Industrial/Conunercial(IC) Developed Water Resources(WR) 14. Method of Mining: Briefly explain mining method(e.g.truck/shovel): Materials will be mined using front end loaders,trucks,conveyors,and scrapers. 15. On Site Processing: X Crushing/Screening 13.1 Briefly explain mining method(e.g.truck/shovel): Excavate with a front-end loader and convey material to a fixed processing plant then crush and wash excavated materials. List any designated chemicals or acid-producing materials to be used or stored within permit area: There will be a 10,000 gallon above ground diesel storage tank on-site. 16_ Description of Amendment or Conversion: If you are amending or converting an existing operation,provide a brief narrative describing the proposed change(s). N/A -5- Maps and Exhibits: Two(2)complete,unbound application packages must be submitted. One complete application package consists of a signed application form and the set of maps and exhibits referenced below as Exhibits A-S.Addendum 1,and the Geotechnical Stability Exhibit. Each exhibit within the application must be presented as a separate section. Begin each exhibit on a new page. Pages should be numbered consecutively for ease of reference. If separate documents are used as appendices,please reference these by name in the exhibit. With each of the two(2)signed application forms, you must submit a corresponding set of the maps and exhibits as described in the following references to Rule 6.4,6.5,and 1.6.2(I)(b): EXHIBIT A Legal Description EXHIBIT B Index Map EXHIBIT C Pre-Mining and Mining Plan Map(s)of Affected Lands EXHIBIT D Mining Plan EXHIBIT E Reclamation Plan EXHIBIT F Reclamation Plan Map EXHIBIT G Water Information EXHIBIT H Wildlife Information EXHIBIT I Soils Information EXHIBIT J Vegetation Information EXHIBIT K Climate Information EXHIBIT L Reclamation Costs EXHIBIT M Other Permits and Licenses EXHIBIT N Source of Legal Right-To-Enter EXHIBIT O Owners of Record of Affected Land(Surface Area)and Owners of Substance to be Mined EXHIBIT P Municipalities Within Two Miles EXHIBIT Q Proof of Mailing of Notices to County Commissioners and Conservation District EXHIBIT R Proof of Filing with County Clerk or Recorder EXHIBIT S Permanent Man-Made Structures Rule I.6.2(1)(b) ADDENDUM I -Notice Requirements(sample enclosed) Rule 6.5 Geotechnical Stability Exhibit(any required sections) "Ifie instructions for preparing Exhibits A-S,Addendum 1,and Geotechnical Stability Exhibit are specified under Rule 6.4 and 6.5 and Rule 1,6.2(1)(6)of the Rules and Regulations. If you have any questions on preparing the Exhibits or content of the information required, or would like to schedule a pre-application meeting you may contact the Office at 303-866-3567. Responsibilities As a Permitter: Upon application approval and permit issuance,this application becomes a legally binding document. Therefore, there are a number of important requirements which you,as a permittee, should fully understand. These requirements are listed below. Please read and initial each requirement,in the space provided.to acknowledge that you understand your obligations. If you do not understand these obligations then please contact this Office for a full explanation. rex) I. Your obligation to reclaim the site is not limited to the amount of the financial warranty. You assume legal liability for all reasonable expenses which the Board or the Office may incur to reclaim the affected lands associated with your mining operation in the event your permit is revoked and financial warranty is forfeited; -6- �Y 2. The Board may suspend or revoke this permit, or assess a civil penalty, upon a finding that the permittee violated the terms or conditions of this permit, the Act, the Mineral Rules and Regulations, or that information contained in the application or your permit misrepresent important material facts; �t) 3. If your mining and reclamation operations affect areas beyond the boundaries of an approved permit boundary, substantial civil penalties,to you as permittee can result; "'Far 4. Any modification to the approved mining and reclamation plan from those described in your approved application requires you to submit a permit modification and obtain approval from the Board or Office; 5. It is your responsibility to notify the Office of any changes in your address or phone number: ( C49 6. Upon permit issuance and prior to beginning on-site mining activity,you must post a sign at the entrance of the mine site,which shall be clearly visible from the access road,with the following information (Rule 3.1.12): a. the name of the operator; b. a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board;and, c. the permit number. 1711 7. The boundaries of the permit boundary area must be marked by monuments or other markers that are clearly visible and adequate to delineate such boundaries prior to site disturbance. LO 8. It is a provision of this permit that the operations will be conducted in accordance with the terms and conditions .....1 listed in your application, as well as with the provisions of the Act and the Construction Material Rules and Regulations in effect at the time the permit is issued. 9. Annually,on the anniversary date of permit issuance,you must submit an annual fee as specified by Statute, 1---- and an annual report which includes a map describing the acreage affected and the acreage reclaimed to date(if there are changes from the previous year),any monitoring required by the Reclamation Plan to be submitted annually on the anniversary date of the permit approval. Annual fees are for the previous year a permit is held. For example,a permit with the anniversary date of July 1, 1995,the annual fee is for the period of July 1, 1994 through June 30, 1995. Failure to submit your annual fee and report by the permit anniversary date may result in a civil penalty, revocation of your permit.and forfeiture of your financial warranty. ft is your responsibility,as the permittee,to continue to pay your annual fee to the Office until the Board releases you from your total reclamation responsibility. ittE 10. For ioint venture/partnership operators:the signing representative is authorized to sign this document and a power of attorney(provided by the partner(s)) authorizing the signature of the representative is attached to this application. Permit Condition: Condition: '4-___/ A reportable spill is a spill of any toxic or hazardous substance(including spills of petroleum products)within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment,the National Response Center,the Colorado Emergency Planning Commission,any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Reclamation,Mining and Safety(DRMS)ofa reportable spill within the mined land permit area using the same timeframe required by the permit,license,notice,statute,rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be FAXed to: Minerals Program Supervisor,Division of Reclamation,Mining and Safety,FAX(303)832-8106. The FAX shall include a call-back number ofa responsible company official for DRMS staff to use as a contact. -8- Certification: As an authorized representative of the applicant,thereby certify that the operation described has met the minimum requirements of the following terms and conditions: 1. To the best of my knowledge,all significant,valuable and permanent man-made structure(s)in existence at the time this application is filed,and located within 200 feet of the proposed affected area have been identified in this application (Section 34-32.5-1 15(4)(e),C.R.S.). 2. No mining operation will be located on lands where such operations are prohibited by law (Section 34-32.5-115(4)(f),C.R.S.; 3. As the applicant/operator,I do not have any extraction/exploration operations in the State of Colorado currently in violation of the provisions of the Colorado Land Reclamation Act for the Extraction of Construction Materials (Section 34-32.5-120,C.R.S.)as determined through a Board finding. 4. I understand that statements in the application are being made under penalty of perjury and that false statements made herein are punishable as a Class 1 misdemeanor pursuant to Section 18-8-503,C.R.S. This form has been approved by the Mined Land Reclamation Board pursuant to section 34-32.5-112,CR.S.,of the Colorado Land Reclamation Act for the Extraction of Construction Materials. Any alteration or modification of this form shall result in voiding any permit issued on the altered or modified form and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to section 34-32.5-123,C.R.S.Signed and dated this 5 day of 1 `',,�^ 6 , ar5-05 Todd Ohlheiser Lafarge West,Inc. If Corporation Attest(Seal) Applicant/Operator or Company Name Signed:7-.,/6'76d(.. ----------A--•r----- Signe 750e z . r'` c .41,71--., 4�--f• • .f'.,,r.4.09- 4--.7,-27(--„, Corporate Secretary or Equivalent it Title:V1 Ito cAG 41 wto a,J,�gr.) A.60 G. Town/City/County Clerk State of cQ. -.-OL<) ) ss. County of____ er ) 54 (\tThe foregoing instrument was acknowledged before me this—__- day of taitmer , by_add Ohiheiser _as VP Rocky Mounlain Agg -of Lafarge West.Inc. Note blici My Commission expir ,tJ�' WEF�1,I, 5O •qy,: '1 e SIGNATURES MUST BE IN BLUE INK -t- / M'nrin•sharel,fo ms'conetroction 112 doc (Approved 05/I 1:2(1)5) 11 isl%dp G. O' h( .e CtgL. oqs.. I, )F OF COV MY •T ISSION EXPIRES DEC.19,2009 • • STATE QF COLORADO DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources Weld County Planning Department 1313 Sherman St.,Room 215 GREEK FY OFFICE nCLAMATION ION OF *heone: Colorado r 1 l G , DIVI hone:(303)866-3567 F P j e, L0s�B FAX:(303)832-8106 RECEWED Bill Ritter,Jr. Notice of 112 Construction Materials Governor Reclamation Permit Application Consideration Harris D.Sherman Executive Director Ronald W.Cattany Division Director Natural Resource Trustee DATE: April 14,2008 TO: Weld County Commissioners County Commissioner 915 10th St Greeley, CO 80631 FROM: Peter S. Hays, Environmental Protection Specialist Mr Sc Ps„ RE: Lafarge West, Inc., Parsons Mine,File No. M-2007-088 • Please be advised that on April 14, 2008, Lafarge West, Inc., whose address and telephone number are 1800 North Taft Hill Road , Fort Collins, CO 80521; (970) 407-3620, filed an application to conduct Surface extraction of construction materials and reclamation, at or near Section 36, Township 6N, Range 67W, 06th Prime Meridian, in Weld County. Please be advised that the permit area may be located in more than one Section, Township, and Range. The application decision is scheduled for July 13,2008. A copy of the application is available for review at the Weld County Clerk & Recorder's office and at the office of the Division of Reclamation, Mining and Safety,Room 215, 1313 Sherman Street,Denver,Colorado 80203. If you desire to make comments or objections, they must be submitted within twenty (20) days of the date of the last newspaper public notice to be considered in the application review process by the Division. You should contact the applicant for the newspaper publication date. If we do not receive your comments or any objection by the end of the public comment period,the Office will assume you have no objection or comment to the proposed activity. • 'Ob//C Rev/ e ii ._/-O),-- a O Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines • • STATE OF COLORADO DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources 1313 Sherman St.,Room 215 nCOLORADO Denver,Colorado 80203 Phone:(303)866-3567 CONSTRUCTION MATERIALS FAX:(303)832 8106 REGULAR(112)OPERATION RECLAMATION PERMIT APPLICATION FORM Sal Owens Governor CHECK ONE: X There is a File Number Already Assigned to this Operation Russell George. Permit tt M 2007-088 -_ (Please reference the file number currently assigned to this operathSfIlive Director X Ronald W.Cattany New Application(Rule 1.4.5) Amendment Application(Rule 1.10) Division Director Conversion Application(Rule 1.11) Natural Resource Trustee Permit tt M - - - (provide for Amendments and Conversions of existing permits) The application for a Construction Materials Regular 112 Operation Reclamation Permit contains three major parts:(1)the application form;(2)Exhibits A-S,Addendum 1,any sections of Exhibit 6.5(Geotechnical Stability Exhibit;and(3)the application fee. When you submit your application, be sure to include one (1) complete signed and notarized ORIGINAL and one(1)copy of the completed application form,two(2)copies of Exhibits A-S,Addendum 1,appropriate sections of 6.5(Geotechnical Stability Exhibit,anda check for the application fee described under Section(4)below. Exhibits should NOT be bound or in a 3-ring binder;maps should be folded to 8 1/2"X 11"or 8 1/2"X 14"size. To expedite processing,please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly,in the space provided,ALL information requested below. • I. Applicant/operator or company name(name to be used on permit): Lafarge West,Inc. -- 1.1 Type of organization(corporation,partnership,etc.): corporation 2. Operation name(pit,mine or she name): Parsons Mine 3. Permitted acreage(new or existing site): 381± permitted acres 3.1 Change in acreage('+-) 0 acres 3.2 Total acreage in Permit area 381± acres 4. Fees: 4.I New Application $2.344.00 application fee 4.2 New Quarry Application $2.906.00 quarry application 4.4 Amendment Fee $1.938.00 amendment fee 4.5 Conversion to 112 operation(set by statute) _$2.344.00 conversion fee 5. Primary commoditie(s)to be mined: Sand gravel fill 5.1 Incidental commoditie(s)to be mined: 1. gol Jless than 1 Ibli I'onsiff 2. _/ Ibsi I opsiyr 3..__ /___----.-lbs/Tons/tr 4. --- ' lbs/Tons/yr 5.--- / lbs/Tons/yr 5.2 Anticipated end use of primary commoditie(s)to be mined: construction materials 5.3 Anticipated end use of incidental commoditie(s)to be mined: n/a • Office of Office of Mined 1 and Reclamation Active and Inactive.Mine -2- • 6. Name of owner of subsurface rights of affected land: refer to Exhibit O If 2 or more owners,"refer to Exhibit O". 7. Name of owner of surface of affected land: refer to Exhibit O 8. Time of mining operation: X Surface Underground 9. Location Information: The center of the area where the majority of mining will occur: COUNTY: Weld PRINCIPAL MERIDIAN(check one): X 6th(Colorado) 10th(New Mexico) Ute SECTION(write number): S 36 TOWNSHIP(write number and check direction): T 6 X North South RANGE(write number and check direction): R 67 East X West QUARTER SECTION(check one): X NE NW SE SW QUARTERJQUARTER SECTION(check one): X NE _NW SE SW GENERAL DESCRIPTION:(the number of miles and direction from the nearest town and the approximate elevation): 1/4 mile East of Windsor with an approximate elevation of 4730 feet 10. Primary Mine Entrance Location(report in either Latitude/Longitude OR UTM): Latitude/Longitude: Example: (N) 39° 44' 12.98" (W) 104° 59' 3.87" Latitude(N): deg 40 min 27 sec 28 85 (2 decimal places) Longitude(W): deg 104 min 49 sec 42 35 (2 decimal places) OR Example: (N) 39.73691° (W) -104.98449° Latitude(N) (5 decimal places) Longitude(W) (5 decimal places) OR Universal Tranverse Mercator(UTM) Example: 201336.3 I; NAD27 Zone 13 4398351.2 N UTM Datum(specify NAD27,NAD83 or WGS 84) Zone Easting Northing • { • • -3- III11. Correspondence Information: APPLICANT/OPERATOR (name,address,and phone of name to be used on permit) Contact's Name: Eric Reckentine Title: Area Manager,N.Cob.Agg.Div. Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hill Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: ( 970 )- 407-3620 Fax Number: ( 970 )- 407-3900 PERMITTING CONTACT (if different from applicant/operator above) Contact's Name: Jennifer Vecchi Title: Project Manager Company Name: Vecchi&Associates,LLC Street/P.O.Box: P.O.Box: 1175 City: Longmont State: Colorado zip Code: 80502-1175 Telephone Number: ( 303 )- 774-0173 Fax Number: ( 303 )_ 774-0173 INSPECTION CONTACT • Contact's Name: Eric Reckentine Title: Area Manager,N.Cob.Agg.Div. Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hill Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: ( 970 )- 407-3629 Fax Number. ( 970 )- 407-3900 CC: STATE OR FEDERAL LANDOWNER(if any) Agency: Street: City: State: Zip Code: Telephone Number: ( )- QC: STATE OR FEDERAL LANDOWNER(if anv) Agency: Street: City: - State: Zip Code: Telephone Number: ( )- __ • -4 - III12. Primary future(Post-mining) land use(check one). Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(FR) Wildlife Habitat(WL) Residential(RS) Recreation(RC) Industrial/Cornmercial(IC) Developed Water Resources(WR) ___ Solid Waste Disposal(WD) 13. Primary present land use(check onel: Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(ER) Wildlife Habitat(WL) • Residential(RS) Recreation(RC) Industrial/Commercial(IC) Developed Water Resources(WR) 14. Method of Mining: Briefly explain mining method(e.g.truck/shovel): Materials will be mined using front end loaders,trucks,conveyors,and scrapers. 15. On Site Processing: X Crushing/Screening 13.1 Briefly explain mining method(e.g.truck/shovel): Excavate with a front-end loader and convey material to a fixed processing plant then crush and wash excavated materials. • List any designated chemicals or acid-producing materials to be used or stored within permit area: There will be a 10,000 gallon above ground diesel storage tank on-site. 16. Description of Amendment or Conversion: If you are amending or converting an existing operation,provide a brief narrative describing the proposed change(s). N/A 1111 • 1111 -5- • Maps and Exhibits: Two(2)complete,unbound application packages must be submitted. One complete application package consists of a signed application form and the set of maps and exhibits referenced below as Exhibits A-S,Addendum 1,and the Geotechnical Stability Exhibit. Each exhibit within the application must be presented as a separate section. Begin each exhibit on a new page. Pages should be numbered consecutively for ease of reference. If separate documents are used as appendices,please reference these by name in the exhibit With each of the two(2)signed application forms, you must submit a corresponding set of the maps and exhibits as described in the following references to Rule 6.4,6.5,and 1.6.2(1)(b): EXHIBIT A Legal Description EXHIBIT B Index Map EXHIBIT C Pre-Mining and Mining Plan Map(s)of Affected Lands EXHIBIT D Mining Plan EXHIBIT E Reclamation Plan - EXHIBIT F Reclamation Plan Map EXHIBIT G Water Information EXHIBIT H Wildlife Information EXHIBIT I Soils Information EXHIBIT J Vegetation Information EXHIBIT K Climate Information EXHIBIT L Reclamation Costs EXHIBIT M Other Permits and Licenses • EXHIBIT N Source of Legal Right-To-Enter EXHIBIT O Owners of Record of Affected Land(Surface Area)and Owners of Substance to be Mined EXHIBIT P Municipalities Within Two Miles EXHIBIT Q Proof of Mailing of Notices to County Commissioners and Conservation District EXHIBIT R Proof of Filing with County Cleric or Recorder EXHIBIT S Permanent Man-Made Structures Rule 1.6.2(I)(b) ADDENDUM 1 -Notice Requirements(sample enclosed) Rule 6.5 Geotechnical Stability Exhibit(any required sections) The instructions for preparing Exhibits A-S,Addendum 1,and Geotechnical Stability Exhibit are specified under Rule 6.4 and 6.5 and Rule 1.6.2(1)(b)of the Rules and Regulations. If you have any questions on preparing the Exhibits or content of the information required. or would like to schedule a pre-application meeting you may contact the Office at 303-866.3567. Responsibilities a a Perinittee: Upon application approval and permit issuance, this application becomes a legally binding document. Therefore, there are a number of important requirements which you,as a permittee, should fully understand. These requirements are listed below. Please read and initial each requirement,in the space provided,to acknowledge that you understand your obligations. If you do not understand these obligations then please contact this Office for a full explanation. 1. Your obligation to reclaim the site is not limited to the amount of the financial warranty. You assume legal liability for all reasonable expenses which the Board or the Office may incur to reclaim the affected lands associated • with your mining operation in the event your permit is revoked and financial warranty is forfeited; • r 0 -6- • k� 2. The Board may suspend or revoke this permit, or assess a civil penalty, upon a finding that the permittee violated the terms or conditions of this permit, the Act, the Mineral Rules and Regulations, or that information contained in the application or your permit misrepresent important material facts; �t� 3. If your mining and reclamation operations affect areas beyond the boundaries of an approved permit boundary, substantial civil penalties,to you as permittee can result; LAP 4. Any modification to the approved mining and reclamation plan from those described in your approved application requires you to submit a permit modification and obtain approval from the Board or Office; TirS. It is your responsibility to notify the Office of any changes in your address or phone number; (c 6. Upon permit issuance and prior to beginning on-site mining activity,you must post a sign at the entrance of the mine site,which shall be clearly visible from the access road,with the following information(Rule 3.1.12): a. the name of the operator; b. a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board;and, /n c. the permit number. "�"' 7. The boundaries of the permit boundary area must be marked by monuments or other markers that are clearly visible and adequate to delineate such boundaries prior to site disturbance. la 8. It is a provision of this permit that the operations will be conducted in accordance with the terms and conditions • listed in your application, as well as with the provisions of the Act and the Construction Material Rules and Regulations in effect at the time the permit is issued. �� 9. Annually,on the anniversary date of permit issuance,you must submit an annual fee as specified by Statute, and an annual report which includes a map describing the acreage affected and the acreage reclaimed to date(if there are changes from the previous year),any monitoring required by the Reclamation Plan to be submitted annually on the anniversary date of the permit approval. Annual fees are for the previous year a permit is held. For example,a permit with the anniversary date of July 1, 1995,the annual fee is for the period of July 1, 1994 through June 30, 1995. Failure to submit your annual fee and report by the permit anniversary date may result in a civil penalty, revocation of your permit, and forfeiture of your financial warranty. It is your responsibility,as the permittee,to continue to pay your annual fee to the Office until the Board releases you from your total reclamation responsibility. ( 10. For joint venture/partnership operators: the signing representative is authorized to sign this document and a power of attorney(provided by the partner(s)) authorizing the signature of the representative is attached to this application. Permit Condition: Condition: 4�--- A reportable spill is a spill of any toxic or hazardous substance(including spills of petroleum products)within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment,the National Response Center,the Colorado Emergency Planning Commission,any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Reclamation,Mining and Safety(DRMS)of a reportable spill within the mined land permit area using the same timeframe required by the permit,license,notice,statute,rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be FAXed to: Minerals Program Supervisor,Division of Reclamation,Mining and 0 Safety,FAX(303) 832-8106. The FAX shall include a call-back number ofa responsible company official for DRMS staff to use as a contact. -8- • Certification: As an authorized representative of the applicant,I hereby certify that the operation described has met the minimum requirements of the following terms and conditions: 1. To the best of my knowledge,all significant,valuable and permanent man-made structure(s)in existence at the time this application is filed,and located within 200 feet of the proposed affected area have been identified in this application (Section 34-32.5-I 15(4)(e),C.R.S.). 2. No mining operation will be located on lands where such operations are prohibited by law (Section 34-32.5-115(4)(0,C.R.S.; 3. As the applicant/operator,I do not have any extraction/exploration operations in the State of Colorado currently in violation of the provisions of the Colorado Land Reclamation Act for the Extraction of Construction Materials (Section 34-32.5-120,C.R.S.)as determined through a Board finding. 4. I understand that statements in the application are being made under penalty of perjury and that false statements made herein are punishable as a Class 1 misdemeanor pursuant to Section 18-8-503,C.R.S. This form has been approved by the Mined Land Reclamation Board pursuant to section 34-32.5-I12,C.RS.,of the Colorado Land Reclamation Act for the Extraction of Construction Materials Any alteration or modification of this form shall result in voiding any permit issued on the altered or modified form and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to section 34-32.5-123,C.R.S. Signed and dated this S ¢ day of 1\14.4.3k- , c9Ca8 • Todd Ohlheiser Lafarge West,Inc. If Corporation Attest(Seal) Applicant/Operator or Company Name Signe K:f d Signe Lea eI �s.r�1c-- T/'- 4$.,s( t'nz Y4.7- 4,-,- 2F Corporate Secretary or Equivalent Title:" 1740C-44 S ww rd�r4-it-) 0.66 Town/City/County Clerk State of ) )ss. County of ) The foregoing instrument was acknowledged before me this 64 day of Dirt 6 , ,by__],OcIrl C)hlhelce!________ __as.__VP Rocky Mountain Agq -of Lafarge West.Inc. LlJ-�'f/� No blic My Commission expir. ,J4 ..4-ri. i SIGNATURES MUST BE IN BLUE INK 9 ---r- I • Un_e•nuham m•v5roxHontimelwn 111 d.c (Approved 05/11/2005) I SL.A (; f ,1�lii.�B�.:oP�o° 15v`OF OM' = MY CO^ISSION . - EXPIRES DEC.19,2009 • • • EXHIBIT A Legal Description Metes and Bounds Legal Description A PARCEL OF LAND LOCATED IN THE NORTHEAST QUARTER OF SECTION 36,THE SOUTHEAST QUARTER OF SECTION 25,TOWNSHIP 6 NORTH,RANGE 67 WEST AND THE NORTHWEST QUARTER OF SECTION 31,THE SOUTHWEST QUARTER OF SECTION 30,TOWNSHIP 6 NORTH,RANGE 66 WEST,ALL IN THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD, STATE OF COLORADO AND BEING MORE 'PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE EAST ONE-QUARTER CORNER OF SAID SECTION 25,WHENCE THE SOUTHEAST ONE-QUARTER CORNER OF SAID SECTION 25 BEARS SOUTH 00°35'52"EAST,A DISTANCE OF 2634.91 FEET, SAID LINE FORMING THE BASIS OF BEARINGS FOR THIS DESCRIPTION;THENCE ALONG SAID LINE SOUTH 00°35'52"EAST A DISTANCE OF 30.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 86°17'47"EAST,A DISTANCE OF 12.24 FEET;THENCE SOUTH 00°35'52" EAST,A DISTANCE OF 388.35 FEET;THENCE NORTH 86°17'47"EAST,A DISTANCE OF 225.17 FEET;THENCE NORTH 00°09'28"WEST,A DISTANCE OF 378.51 FEET;THENCE ALONG A LINE 40.00 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 30 NORTH 86°17'47"EAST,A DISTANCE OF 1298.11 FEET TO A POINT ON THE EASTERLY BOUNDARY LINE OF LOT B, CORRECI ED RECORDED EXEMPTION NO.0805-30-3 RE2870 RECORDED 4-18-2002 ACCORDING TO THE WELD COUNTY RECORDS;THENCE ALONG SAID EASTERLY BOUNDARY LINE THE FOLLOWING TEN COURSES; 1)THENCE SOUTH 01°09'01"EAST,A DISTANCE OF 350.78 FEET;2)THENCE NORTH 88°50'59"EAST,A DISTANCE OF 219.78 FEET;3)THENCE SOUTH 01°09'01"EAST,A DISTANCE OF 984.28 FEET;4)THENCE SOUTH 88°50'59"WEST,A DISTANCE OF 274.15 FEET; 5)THENCE SOUTH 01°09'01" EAST,A DISTANCE OF 624.44 FEET;6)THENCE NORTH 88°50'59"EAST,A DISTANCE OF 312.79 FEET; 7) THENCE SOUTH 02°12'44"EAST,A DISTANCE OF 86.34 FEET; 8)THENCE SOUTH 02°20'17"EAST, A DISTANCE OF 191.70 FEET;9)THENCE SOUTH 01°58'20"EAST, A DISTANCE OF 212.95 FEET; 10)THENCE SOUTH 02°2629" EAST,A DISTANCE OF 135.01 FEET TO A POINT ON THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 31;THENCE ALONG SAID LINE SOUTH 86°25'00" WEST,A DISTANCE OF 256.20 FEET TO THE SOUTHWEST CORNER OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 30;THENCE ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID SECTION 31 SOUTH 00°20'58" WEST,A DISTANCE OF 1007.80 FEET TO A POINT ON THE SOUTHERLY LINE OF A PARCEL OF LAND RECORDED AS RECEPTION NO. 2253418, BOOK 1302,JUNE 17, 1991 IN THE WELD COUNTY RECORDS;THENCE ALONG SAID SOUTHERLY BOUNDARY LINE THE FOLLOWING NINE COURSES; 1)THENCE NORTH 63°06'14" WEST,A DISTANCE OF 308.55 FEET;2)THENCE SOUTH 76°10'08" WEST,A DISTANCE OF 419.98 FEET;3)THENCE SOUTH 66°20'03" WEST,A DISTANCE OF 477.17 FEET;4)THENCE SOUTH 06°09'41" WEST, A DISTANCE OF 425.31 FEET; 5)THENCE SOUTH 31°21'08" EAST,A DISTANCE OF 265.50 FEET;6)THENCE SOUTH 04°18'18" WEST,A DISTANCE OF 125.54 FEET; 7)THENCE SOUTH 30°30'33" WEST, A DISTANCE OF 186.53 FEET; 8) THENCE SOUTH 43°32'41" WEST,A DISTANCE OF 301.48 FEET; 9)THENCE SOUTH 67°20'04" WEST,A DISTANCE OF 280.45 FEET;THENCE ALONG A LINE 30.00 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 SOUTH 00°01'18" EAST,A DISTANCE OF 319.20 FEET TO A POINT ON THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36; THENCE ALONG SAID SOUTH LINE SOUTH 89°33'49" WEST,A DISTANCE OF 2607.48 FEET TO THE CENTER ONE-QUARTER CORNER OF SAID SECTION 36;THENCE ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 NORTH 00°05'20" WEST,A DISTANCE OF 2642.29 FEET TO THE NORTH ONE-QUARTER CORNER OF SAID SECTION 36;THENCE ALONG THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 NORTH 89°33'25" EAST,A DISTANCE OF 1320.15 FEET TO THE NORTHWEST CORNER OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 36; • Parsons Mine DRMS 112 Reclamation Permit Application Page A I of A2 • STATE if COLORADO DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources 13 Sherman St.,Room 215 COLORADO enver,Colorado 80203 D t o N OF Phone:(303)866-3567 RECLAMATION FAX:(303)832-8106 MINING —&— SAFETY Bill Ritter,Jr. Notice of 112 Construction Materials Governor Reclamation Permit Application Consideration Harris D.Sherman Executive Director Ronald W.Cattany Division Director Natural Resource Trustee DATE: April 14,2008 TO: Weld County Commissioners County Commissioner 915 10th St Greeley,CO 80631 FROM: Peter S. Hays, Environmental Protection Specialist rise- 4ev 9$9 RE: Lafarge West, Inc.,Parsons Mine,File No. M-2007-088 •Please be advised that on April 14, 2008, Lafarge West, Inc., whose address and telephone number are 1800 North Taft Hill Road , Fort Collins, CO 80521; (970) 407-3620, filed an application to conduct Surface extraction of construction materials and reclamation, at or near Section 36, Township 6N, Range 67W, 06th Prime Meridian, in Weld County. Please be advised that the permit area may be located in more than one Section, Township, and Range. The application decision is scheduled for July 13,2008. A copy of the application is available for review at the Weld County Clerk & Recorder's office and at the office of the Division of Reclamation,Mining and Safety,Room 215, 1313 Sherman Street,Denver,Colorado 80203. If you desire to make comments or objections, they must be submitted within twenty (20) days of the date of the last newspaper public notice to be considered in the application review process by the Division. You should contact the applicant for the newspaper publication date. If we do not receive your comments or any objection by the end of the public comment period,the Office will assume you have no objection or comment to the proposed activity. • • C Rev; C( PE / '(A/ Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines • • • STATE of COLORADO • DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources 1313 Sherman St.,Room 215 Denver,Colorado 80203 C O L O R A D O O r v I s I O N O F Phone:(303)866-3567 CONSTRUCTION MATERIALS RECLAMATION FAX:(303)832-8106 REGULAR(1 I2)OPERATION MINING RECLAMATION PERMIT APPLICATION FORM SAFETY Bill Owens Governor CHECK ONE: X There is a File Number Already Assigned to this Operation Russell George Permit# M 3007-088 - (Please reference the file number currently assigned to this operaffoll 1e Dlrecrnr X Ronald w.Cottony New Application(Rule I.4.5) Amendment Application(Rule 1.10) Division Director Conversion Application(Rule 1.11) Natural Resource Trustee Permit# M - - - (provide for Amendments and Conversions of existing permits) The application for a Construction Materials Regular 112 Operation Reclamation Permit contains three major parts:(1)the application form;(2)Exhibits A-S,Addendum 1,any sections of Exhibit 6.5(Geotechnical Stability Exhibit;and(3)the application fee. When you submit your application, be sure to include one (1) complete sinned and notarized ORIGINAL and one(1)copy of the completed application form,two(2)copies of Exhibits A-S,Addendum 1,appropriate sections of 6.5(Geotechnical Stability Exhibit,and a check for the application fee described under Section(4)below. Exhibits should NOT be bound or in a 3-ring binder;maps should be folded to 8 1/2"X I I"or 8 1/2"X 14"size. To expedite processing,please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly,in the space provided,ALL information requested below. 1. Applicant/operator or company name(name to be used on permitl: Lafarge West,Inc.4. V` 1.1 Type of organization(corporation,partnership,etc.): corporation 2. Operation name(pit,mine or site namel: Parsons Mine 3. Permitted acreane(new or existin¢sitel: 381± permitted acres 3.1 Change in acreage(+l-) 0_ acres 3.2 Total acreage in Permit area 3813= acres 4. Fees: 4.1 New Application $2,344.00 application fee 4.2 New Quarry Application $2.906.00 quarry application 4.4 Amendment Fee _$1.938.00_ amendment fee 4.5 Conversion to 112 operation(set by statute) _$2.344.00 conversion fee 5. Primary commaditie(s1 to be mined: Sand gravel fill 5.1 Incidental commloditie(s)to be mined: 1. .gold/less than 1 Ibllfons/fir 2. /_ _„ 1bsiTonsi r 3. / IbsffoiLl 4. I lbs/Tons/yr 5. I lbs/Tons/yr 5.2 Anticipated end use of primary commoditie(s)to be mined: construction materials — — _______ 5.3 Anticipated end use of incidental commoditie(s)to be mined: n/a _ ` • Office of Office of Mined land Reclamation Active and Inactive Mines • • -2- • 6. Name of owner of subsurface rights of affected land: refer to Exhibit O if 2 or more owners,"refer to Exhibit O". 7. Name of owner of surface of affected land: refer to Exhibit O 8. Type of mining operation: X Surface Underground 9. Location Information: The center of the area where the majority of mining will occur: COUNTY: Weld PRINCIPAL MERIDIAN(check one): X 6th(Colorado) 10th(New Mexico) Ute SECTION(write number): S 36 TOWNSHIP(write number and check direction): T 6 X North South RANGE(write number and check direction): R 67 East X West QUARTER SECTION(check one): X NE —NW SE _SW QUARTER/QUARTER SECTION(check one): X NE NW SE SW GENERAL DESCRIPTION:(the number of miles and direction from the nearest town and the approximate elevation): 1/4 mile East of Windsor with an approximate elevation of 4730 feet 10. Primary Mine Entrance Location(report in either Latitude/Longitude OR UTM): • Latitude/Longitude: Example: (N) 39° 44' 12.98" (W) 104° 59' 3.87" Latitude(N): deg 40 min 27 sec 28 85 (2 decimal places) Longitude(W): deg 104 min 49 sec 42 35 (2 decimal places) OR Example: (N) 39.73691° (W) -104.98449° Latitude(N) (5 decimal places) Longitude(W) _ _(5 decimal places) OR Universal Tranverse Mercator(UTM) Example: 201336.3 F NAD27 Zone 13 4398351.2 N UTM Datum(specify NAD27,NAD83 or WGS 84) _ Zone Fasting Northing i • • -3- • 11. Correspondence Information: APPLICANT/OPERATOR (name,address,and phone of name to be used on permit) Contact's Name: Eric Reckentine Tide: Area Manager,N.Colo.Agg.Div. Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hilt Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: ( 970 )- 407-3620 Fax Number: ( 970 )- 407-3900 PERMITTING CONTACT (if different from applicant/operator above) Contact's Name: Jennifer Vecchi Title: Project Manager Company Name: Vecchi&Associates,LLC Street/P.O.Box: P.O.Box: 1175 City: Longmont State: Colorado Zip Code: 80502-1175 Telephone Number. ( 303 )- 774-0173 Fax Number: j 303 )_ 774-0173 INSPECTION CONTACT • Contact's Name: Eric Reckentine Title: Area Manager,N.Colo.Agg.Div. Company Name: Lafarge West,Inc. Street/P.O.Box: 1800 North Taft Hill Road P.O.Box: City: Fort Collins State: Colorado Zip Code: 80521 Telephone Number: 1 970 )- 407-3620 Fax Number: 1 970 1- 407-3900 CC: STATE OR FEDERAL LANDOWNER(if any) Agency: Street: City: State: Zip Code: Telephone Number: ( )- CC: STATE OR FEDERAL LANDOWNER(if anv) Agency: Street: City: State: Zip Code: Telephone Number: ( ) • • • -4- • 12. Primary future(Posbnunint)land use(check one): Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(FR) Wildlife Habitat(WL) Residential(RS) _ Recreation(RC) Industrial/Commercial(IC) Developed Water Resources(WR) Solid Waste Disposal(WD) 13. Primary present land use(check one(: Cropland(CR) Pastureland(PL) General Agriculture(GA) X Rangeland(RL) Forestry(FR) Wildlife Habitat(WL) Residential(RS) Recreation(RC) _ Industrial/Commercial(IC) Developed Water Resources(WR) 14. Method of Mining: Briefly explain mining method(e.g.truck/shovel): Materials will be mined using front end loaders,trucks,conveyors,and scrapers. 15. On Site Processing: X Crushing/Screening 13.1 Briefly explain mining method(e.g.truck/shovel): Excavate with a front-end loader and convey material to a fixed processing plant then crush and wash excavated materials. • List any designated chemicals or acid-producing materials to be used or stored within permit area: There will be a 10,000 gallon above ground diesel storage tank on-site. 16. Description of Amendment or Conversion: If you are amending or converting an existing operation,provide a brief narrative describing the proposed change(s). N/A • -5- • Mans and Exhibits: Two(2)complete,unbound application packages must be submitted. One complete application package consists of a signed application form and the set of maps and exhibits referenced below as Exhibits A-S,Addendum I,and the Geotechnical Stability Exhibit. Each exhibit within the application must be presented as a separate section. Begin each exhibit on a new page. Pages should he numbered consecutively for ease of reference. If separate documents are used as appendices,please reference these by name in the exhibit. With each of the two(2)signed application forms, you must submit a corresponding set of the maps and exhibits as described in the following references to Rule 6.4,6.5.and 1.6.2(I)(b): EXHIBIT A Legal Description EXHIBIT B Index Map EXHIBIT C Pre-Mining and Mining Plan Map(s)of Affected Lands EXHIBIT D Mining Plan EXHIBIT E Reclamation Plan EXHIBIT F Reclamation Plan Map EXHIBIT G Water Information EXHIBIT H Wildlife Information EXHIBIT I Soils Information EXHIBIT J Vegetation Information EXHIBIT K Climate Information EXHIBIT L Reclamation Costs EXHIBIT M Other Permits and Licenses • EXHIBIT N Source of Legal Right-To-Enter EXHIBIT O Owners of Record of Affected Land(Surface Area)and Owners of Substance to be Mined EXHIBIT P Municipalities Within Two Miles EXHIBIT Q Proof of Mailing of Notices to County Commissioners and Conservation District EXHIBIT R Proof of Filing with County Clerk or Recorder EXHIBIT S Permanent Man-Made Structures Rule 1.6.2(l)(b) ADDENDUM 1 -Notice Requirements(sample enclosed) Rule 6.5 Geotechnical Stability Exhibit(any required sections) The instructions for preparing Exhibits A-S, Addendum 1,and Geotechnical Stability Exhibit are specified under Rule 6.4 and 6.5 and Rule 1.6.2(1)(b)of the Rules and Regulations. If you have any questions on preparing the Exhibits or content of the information required, or would like to schedule a pre-application meeting you may contact the Office at 303-866-3567. Responsibllitias as a Porinittee: Upon application approval and permit issuance, this application becomes a legally binding document. Therefore, there are a number of important requirements which you,as a permittee, should fully understand. These requirements are listed below. Please read and initial each requirement,in the space provided,to acknowledge that you understand your obligations. Ifyou do not understand these obligations then please contact this Office for a full explanation. erte.2 I. Your obligation to reclaim the site is not limited to the amount of the financial warranty. You assume legal liability for all reasonable expenses which the Board or the Office may incur to reclaim the affected lands associated • with your mining operation in the event your permit is revoked and financial warranty is forfeited; • • -6- • k� 2. The Board may suspend or revoke this permit, or assess a civil penalty, upon a finding that the permittee violated the terms or conditions of this permit, the Act, the Mineral Rules and Regulations, or that information contained in the application or your permit misrepresent important material facts; �� 3. If your mining and reclamation operations affect areas beyond the boundaries of an approved permit boundary, substantial civil penalties,to you as permittee can result; �(1"�J 4. Any modification to the approved mining and reclamation plan from those described in your approved application requires you to submit a permit modification and obtain approval from the Board or Office; 17, 5. It is your responsibility to notify the Office of any changes in your address or phone number; �� 6. Upon permit issuance and prior to beginning on-site mining activity,you must post a sign at the entrance of the mine site,which shall be clearly visible from the access road, with the following information (Rule 3.1.12): a. the name of the operator; b. a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board;and, c. the permit number. 44 7. The boundaries of the permit boundary area must be marked by monuments or other markers that are clearly visible and adequate to delineate such boundaries prior to site disturbance. •�L' 8. It is a provision of this permit that the operations will be conducted in accordance with the terms and conditions listed in your application, as well as with the provisions of the Act and the Construction Material Rules and Regulations in effect at the time the permit is issued. �49 9. Annually,on the anniversary date of permit issuance,you must submit an annual fee as specified by Statute, and an annual report which includes a map describing the acreage affected and the acreage reclaimed to date(if there are changes from the previous year),any monitoring required by the Reclamation Plan to be submitted annually on the anniversary date of the permit approval. Annual fees are for the previous year a permit is held. For example,a permit with the anniversary date of July 1, 1995,the annual fee is for the period of July 1, 1994 through June 30, 1995. Failure to submit your annual fee and report by the permit anniversary date may result in a civil penalty, revocation of your permit, and forfeiture of your financial warranty. It is your responsibility,as the permittee,to continue to pay your annual fee to the Office until the Board releases you from your total reclamation responsibility. (» 10. For joint venture/partnership operators: the signing representative is authorized to sign this document and a power of attorney (provided by the partner(s)) authorizing the signature of the representative is attached to this application. Per�miit�Condition: -1---� A reportable spill is a spill of any toxic or hazardous substance(including spills of petroleum products)within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment,the National Response Center,the Colorado Emergency Planning Commission,any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Reclamation,Mining and Safety(DRMS)of a reportable spill within the mined land permit area using the same timeframe required by the permit,license,notice,statute,rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be FAXed to:Minerals Program Supervisor,Division of Reclamation,Mining and • Safety,FAX(303) 832-8106. The FAX shall include a call-back number of responsible company official for DR,MS staff to use as a contact. . • • -8- • Certification: As an authorized representative of the applicant,I hereby certify that the operation described has met the minimum requirements of the following terms and conditions: 1. To the best of my knowledge,all significant,valuable and permanent man-made structure(s)in existence at the time this application is filed,and located within 200 feet of the proposed affected area have been identified in this application (Section 34-32.5-I 15(4)(e),C.R.S.). 2. No mining operation will be located on lands where such operations are prohibited by law (Section 34-32.5-115(4X0, C.R.S.; 3. As the applicant/operator,I do not have any extraction/exploration operations in the State of Colorado currently in violation of the provisions of the Colorado Land Reclamation Act for the Extraction of Construction Materials (Section 34-32.5-120,C.R.S.)as determined through a Board finding. 4. I understand that statements in the application are being made under penalty of perjury and that false statements made herein are punishable as a Class 1 misdemeanor pursuant to Section 18-8-503,C.R.S. This form has been approved by the Mined Land Reclamation Board pursuant to section 34-32.5-112,C.RS,of the Colorado Land Reclamation Act for the Extraction of Construction Materials. Any alteration or modification of this form shall result in voiding any permit issued on the altered or modified form and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to section 34-32.5-123,C.R.S. ii Signed and dated this S ¢ day of I t4.CJ . , Cots . • Todd Ohlheiser Lafarge West,Inc. If Corporation Attest(Seal) Applicant/Operator or Company Name Signed: -----,,---.. - Sign (, ai c cW2 eia:�r (J .n--; 4L1� tan r lliq�y�=j c7e Corporate Secretary or Equivalent eJ Title:Vi f)-4 A4 / 14i4 61,e-17,74-1r-1 14-O6 Town/City/County Clerk li State of &614-04-0' ) )ss. County of ) The foregoing instrument was acknowledged before me this 6 day of t A-4- art , ,by__Sndd nhlheicer —__as_ i1P Rocky Mountain Agg of Lafarge West.Inc • _ Not@ blic� My Commission expir ter ox._yi WFF`rh. coO-t AR ,' 'II • SIGNATURES MUST BE IN BLUE INK ; 5 --at— •. r N^nnmsnaremtonmi'nertuenan l I'1 doc (Approved 05/11(2105) III Ip•,/4 `G iej ik % •P: 1a'`OF CO-_- MY COr'ISSION EXPIRES DEC.19,2009 • EXHIBIT A Legal Description Metes and Bounds Legal Description A PARCEL OF LAND LOCATED IN THE NORTHEAST QUARTER OF SECTION 36,THE SOUTHEAST QUARTER OF SECTION 25,TOWNSHIP 6 NORTH,RANGE 67 WEST AND THE NORTHWEST QUARTER OF SECTION 31,THE SOUTHWEST QUARTER OF SECTION 30,TOWNSHIP 6 NORTH,RANGE 66 WEST,ALL IN THE SIXTH PRINCIPAL MERIDIAN,COUNTY OF WELD,STATE OF COLORADO AND BEING MORE 'PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE EAST ONE-QUARTER CORNER OF SAID SECTION 25,WHENCE THE SOUTHEAST ONE-QUARTER CORNER OF SAID SECTION 25 BEARS SOUTH 00°35'52" EAST,A DISTANCE OF 2634.91 FEET, SAID LINE FORMING THE BASIS OF BEARINGS FOR THIS DESCRIPTION;THENCE ALONG SAID LINE SOUTH 00°35'52"EAST A DISTANCE OF 30.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 86°1747"EAST,A DISTANCE OF 12.24 FEET;THENCE SOUTH 00°35'52"EAST,A DISTANCE OF 388.35 FEET;THENCE NORTH 86°17'47"EAST,A DISTANCE OF 225.17 FEET;THENCE NORTH 00°09'28" WEST,A DISTANCE OF 378.51 FEET;THENCE ALONG A LINE 40.00 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 30 NORTH 86'17'47"EAST,A DISTANCE OF 1298.11 FEET TO A POINT ON THE EASTERLY BOUNDARY LINE OF LOT B, CORRECTED RECORDED EXEMPTION NO.0805-30-3 RE2870 RECORDED 4-18-2002 ACCORDING TO THE WELD COUNTY RECORDS;THENCE ALONG SAID EASTERLY BOUNDARY LINE THE FOLLOWING TEN COURSES; 1)THENCE SOUTH 01°09'01" EAST,A DISTANCE OF 350.78 FEET;2)THENCE NORTH • 88°50'59"EAST,A DISTANCE OF 219.78 FEET;3)THENCE SOUTH 01°09'01" EAST,A DISTANCE OF 984.28 FEET;4)THENCE SOUTH 88°50'59"WEST,A DISTANCE OF 274.15 FEET;5)THENCE SOUTH 01°09'01" EAST,A DISTANCE OF 624.44 FEET;6)THENCE NORTH 88°50'59"EAST,A DISTANCE OF 312.79 FEET;7) THENCE SOUTH 02°12'44"EAST,A DISTANCE OF 86.34 FEET; 8)THENCE SOUTH 02°20'17"EAST,A DISTANCE OF 191.70 FEET;9)THENCE SOUTH 01°58'20" EAST,A DISTANCE OF 212.95 FEET; 10)THENCE SOUTH 02°26'29" EAST,A DISTANCE OF 135.01 FEET TO A POINT ON THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 31;THENCE ALONG SAID LINE SOUTH 86°25'00" WEST,A DISTANCE OF 256.20 FEET TO THE SOUTHWEST CORNER OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 30;THENCE ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID SECTION 31 SOUTH 00°20'58" WEST,A DISTANCE OF 1007.80 FEET TO A POINT ON THE SOUTHERLY LINE OF A PARCEL OF LAND RECORDED AS RECEPTION NO.2253418, BOOK 1302,JUNE 17, 1991 IN THE WELD COUNTY RECORDS;THENCE ALONG SAID SOUTHERLY BOUNDARY LINE THE FOLLOWING NINE COURSES; 1)THENCE NORTH 63°06'14" WEST,A DISTANCE OF 308.55 FEET;2)THENCE SOUTH 76°10'08" WEST,A DISTANCE OF 419.98 FEET;3)THENCE SOUTH 66°20'03" WEST,A DISTANCE OF 477.17 FEET;4)THENCE SOUTH 06°09'4 t" WEST, A DISTANCE OF 425.31 FEET; 5)THENCE SOUTH 31°21'08" EAST,A DISTANCE OF 265.50 FEET;6)THENCE SOUTH 04°18'18" WEST,A DISTANCE OF 125.54 FEET; 7)THENCE SOUTH 30°30'33" WEST, A DISTANCE OF 186.53 FEET;8) THENCE SOUTH 43°32'41" WEST,A DISTANCE OF 301.48 FEET;9)THENCE SOUTH 67°20'04" WEST, A DISTANCE OF 280.45 FEET;THENCE ALONG A LINE 30.00 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 SOUTH 00°01'18" EAST, A DISTANCE OF 319.20 FEET TO A POINT ON THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36; THENCE ALONG SAID SOUTH LINE SOUTH 89°33'49" WEST,A DISTANCE OF 2607.48 FEET TO THE CENTER ONE-QUARTER CORNER OF SAID SECTION 36;THENCE ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 NORTH 00°05'20" WEST,A DISTANCE OF 2642.29 FEET TO THE NORTH ONE-QUARTER CORNER OF SAID SECTION 36;THENCE ALONG THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 36 NORTH 89°33'25" EAST,A DISTANCE OF 1320.15 FEET TO • THE NORTHWEST CORNER OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 36; Parsons Mine DRMS 112 Reclamation Permit Application Page A I of A2 • • THENCE ALONG THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 25 NORTH 00°25'35" WEST,A DISTANCE OF 2004.25 FEET;THENCE NORTH 89°32'02" EAST, A DISTANCE OF 265.00 FEET;THENCE NORTH 00°25'35" WEST,A DISTANCE OF 600.00 FEET TO A POINT ON THE SOUTH RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO.64 1/2;THENCE ALONG SAID SOUTH RIGHT-OF-WAY LINE NORTH 89°32'02"EAST,A DISTANCE OF 1048.42 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 380.621 ACRES MORE OR LESS. Mine Entrance Location The location of the mine entrance is: Latitude (N): 40°27' 28.85" Longitude (W): 104°49' 42.35" • • Parsons Mine DRMS 112 Reclamation Permit Application Page A2 of A2 C • • 1 • 3 S 2 / •�t \ CY h-� V o J .. —c_ f//1J CO CD I . / N - --- 1 • 10 i 12 7 )3Th l9 1 0 3000• 6000' -_._-._--- - �------ --- - - �'• ------- 10 11 12 —. 7 8 1 ' .. n Rd n 70 SCALE:t'=6000' /?J� z 17 o u)14 rc 13 z 18 16 ' Y / ///�If V. / i..R i / / "�"^,i'. 1N �Stamw/n J92 ,.........., , , I : PARSONS w ... rn , 7 // ,fjW mais�i� /% 3� 23 g 20 21 , W /W = MINE ` , ///' l I I~ \ m / ,u.: .4. i coun R066 . �\ m r H 2 /yH .. /� �� 'Coen Rd I _.� \ -71 O Vw� /%/:�j�� , RIVER ^'. ` 13.3-1 4 J '< 34 35, Wose w 31 I,\ \ 0 32 L \ 33 3 OD � . /// 36 county -A S \\\ \;,\:„4 \ \ \\\\ 2 ��v�' y �' j hh v V 1 II ' v�tq m Z \ \� � i t TTY A`h2� (\\ \\</8V C j' . • `N ' v i y, AA ►' v Y v ' \\1 v \ r�Y �AV .A is s o C l-\, w z -� S. _ \ ' v %% �� '. v. A l, A - ,d 0 21 ,�iL22 3 4 18 K\\;\\K 0 6 Sc Project No.: 80-4137.029.00 RI © TETRA TECH PARSONS MINE Date: 8/31/07 as INDEX MAP Designed By. MAM/KJW ill www.letratedi com Exhibit No. ffi 1900 S.SUNSET ST..SUITE 1-F, n LONGMONT,CO 80501 UR 2 PHONE:(303)772-7039 FAX:(303)772-5282 l Copyright: Tetra Tech Permanent Man-Made Structures within 200 Feet of the Affected Land Recomm. Mining Setback Setback Phase from based on Within Proposed Stability 200 Feet High Wall Analysis No. Structure Structure Owner 344 (feet) (feet) Mailing Address 1 Whitney Ditch Whitney Irrigation Company IA 87 47 11492 WCR 64 3/4,Greeley,CO 80631 2 WCR 64.5 City of Greeley IA 110 47 1000 10th Street,Greeley,CO 80631 3 Mobile Home Vernon J and Patricia Etter IA 251 47 12344 County Road 64.5,Greeley,CO 80631-9342 4 House Vernon J and Patricia Etter IA 95 47 12344 County Road 64.5,Greeley,CO 80631-9342 5 House Vernon J and Patricia Etter IA 114 47 12344 County Road 64.5,Greeley,CO 80631-9342 6 House Vernon J and Patricia Etter IA 176 47 12344 County Road 64.5,Greeley,CO 80631-9342 7 Barn Vernon J and Patricia Etter I A 158 47 12344 County Road 64.5,Greeley,CO 80631-9342 8 Silos Vernon J and Patricia Etter 1 A 103 47 12344 County Road 64.5,Greeley,CO 80631-9342 _ 1B 160 39 9 Shop Vernon J and Patricia Etter IA 151 47 12344 County Road 64.5,Greeley,CO 80631-9342 1B 159 39 10 Shed Vernon J and Patricia Etter 1B 194 39 12344 County Road 64.5,Greeley,CO 80631-9342 11 Oil/Gas Well(Etter 30-32) Petro Canada Resources, Inc. 1 A 140 47 1099 18th St,Suite 400,Denver,CO 80202 12 Road Petro Canada Resources, Inc. I A 59 47 1099 18th St,Suite 400,Denver,CO 80202 IB 61 39 13 Oil/Gas Pipeline(assumed to be Petro Canada Resources, Inc. 1 A * 47 1099 18th St,Suite 400, Denver,CO 80202 in road-not field located) I B * 39 14 Oil/Gas Well Petro Canada Resources, Inc. 1 A 67 47 1099 18th St,Suite 400, Denver,CO 80202 15 Road Petro Canada Resources, Inc. I A 88 47 1099 18th St,Suite 400, Denver,CO 80202 lB 61 39 16 Oil/Gas Well Petro Canada Resources, Inc. 1 A 145 47 1099 18th St,Suite 400,Denver,CO 80202 1B 142 39 17 Fence Lafarge West,Inc. 1B N/A N/A 10170 Church Ranch Way,Ste 200,Westminster,CO 80021 18 Fence Sally A. Parsons 1 B N/A N/A P.O. Box 336665 Greeley,CO 80633-0612 IC N/A N/A 19 Road Petro Canada Resources, Inc. 1 A 50 47 1099 18th St,Suite 400,Denver,CO 80202 IB 45 39 20 Oil/Gas Pipeline Petro Canada Resources, Inc. I A 47 47 1099 18th St, Suite 400,Denver,CO 80202 IB 64 39 21 Field Ditch Lafarge West,Inc. IA 85 47 10170 Church Ranch Way, Ste 200,Westminster,CO 80021 22 Concrete Irrigation Lateral Lafarge West,Inc. I A N/A N/A 10170 Church Ranch Way, Ste 200,Westminster,CO 80021 23 Fenced Tank Batteries Petro Canada Resources, Inc. I A 193 47 1099 18th St,Suite 400, Denver,CO 80202 IB 215 39 24 Gas Treater and Meter Petro Canada Resources,Inc. I B 155 39 1099 18th St,Suite 400, Denver,CO 80202 25 Oil/Gas Pipeline Petro Canada Resources, Inc. I A 74 47 1099 18th St,Suite 400, Denver,CO 80202 IB 121 39 26 Telephone line Qwest Corporation,Attn: Don Somer 1 A 105 47 12680 WCR 58,Greeley,CO 80634 27 WCR 25 City of Greeley I A 104 47 1000 10th Street,Greeley,CO 80631 IB 61 39 2 107 39 3 63 25 4A 113 25 4B 114 25 28 Natural Gas Gathering Pipelines, DCP Midstream(formerly Duke Energy) IA 73 47 1324 N. 7th Ave,Greeley,CO 80631 Meters, and Valves Attn: Lew Hagenlock 1B 39 39 2 157 39 3 117 25 4A 79 25 46 90 25 29 Underground drainage pipe Lafarge West, Inc. 1B 47 39 10170 Church Ranch Way,Ste 200,Westminster,CO 80021 30 Siphon Lafarge West, Inc. IB 60 39 . 10170 Church Ranch Way,Ste 200,Westminster,CO 80021 31 CMP Lafarge West, Inc. I B 88 39 10170 Church Ranch Way,Ste 200,Westminster,CO 80021 32 Concrete Irrigation Lateral Lafarge West, Inc. 1B 67 39 10170 Church Ranch Way,Ste 200,Westminster,CO 80021 33 Field Ditch Sally A. Parsons N/A N/A N/A P.O. Box 336665 Greeley,CO 80633-0612 IC N/A N/A 3 N/A N/A 34 Road Tigges Oil LLC 1B 207 39 12406 WCR 64 1/2,Greeley,CO 80631 IC 172 30 3 40 25 35 Oil/Gas Pipeline(assumed to be Tigges Oil LLC 1B * 39 12406 WCR 64 1/2,Greeley,CO 80631 in road-not field located) IC * 30 3 * 25 36 Fenced Petroleum Tanks Tigges Oil LLC 3 79 25 12406 WCR 64 1/2,Greeley,CO 80631 37 Fenced Petroleum Tanks Tigges Oil LLC 3 62 25 12406 WCR 64 1/2,Greeley,CO 80631 38 Fenced Petroleum Tank Tigges Oil LLC 3 62 25 12406 WCR 64 1/2,Greeley,CO 80631 39 Fenced Petroleum Tank Noble Energy Production, Inc. 3 147 25 1625 Broadway, Ste. 2000,Denver,CO 80004 4B 100 25 40 Fenced Petroleum Tank Noble Energy Production,Inc. 3 198 25 1625 Broadway,Ste.2000,Denver,CO 80004 4B 195 25 41 Gas Well(State M36-1) Noble Energy Production,Inc. 4A 150 25 1625 Broadway,Ste. 2000,Denver,CO 80004 4B 150 25 4C 150 25 42 Gas Well(State M36-17) Noble Energy Production, Inc. 4C 187 25 1625 Broadway,Ste. 2000, Denver,CO 80004 43 Gas Well(State M5-36) Noble Energy Production, Inc. 5B 196 26 1625 Broadway,Ste. 2000,Denver,CO 80004 44 Gas Pipeline Noble Energy Production,Inc. 5B 200 26 1625 Broadway, Ste. 2000, Denver,CO 80004 Parsons Mine DRMS 112 Reclamation Permit Application Page S2 of S3 Permanent Man-Made Structures within 200 Feet of the Affected Land Recomm. Mining Setback Setback Phase from based on Within Proposed Stability 200 Feet High Wall Analysis No. Structure Structure Owner 344 (feet) (feet) Mailing Address 45 Road Noble Energy Production,Inc. 4A 46 25 1625 Broadway,Ste. 2000, Denver,CO 80004 4B 45 25 46 Gas Pipeline Noble Energy Production,Inc. 4A 44 25 1625 Broadway,Ste. 2000,Denver,CO 80004 4B 57 25 47 Road Noble Energy Production, Inc. 4B 152 25 1625 Broadway,Ste. 2000,Denver,CO 80004 48 Gas Pipeline Noble Energy Production,Inc. 4B 150 25 1625 Broadway,Ste. 2000,Denver,CO 80004 49 Field Ditch Sally A. Parsons 4C N/A N/A P.O. Box 336665,Greeley,CO 80633-0612 50 Field Ditch Sally A. Parsons 4C N/A N/A P.O. Box 336665,Greeley,CO 80633-0612 51 Reinforced Concrete Pipe Sally A.Parsons 4C N/A N/A P.O. Box 336665,Greeley,CO 80633-0612 52 Gas Well(State M6-36) Noble Energy Production,Inc. 4C 150 25 1625 Broadway,Ste.2000, Denver,CO 80004 53 Gas Pipeline Noble Energy Production, Inc. 4C 45 25 1625 Broadway,Ste.2000, Denver,CO 80004 54 Gas Well(M36-7) Noble Energy Production, Inc. 5A 182 25 1625 Broadway,Ste.2000, Denver,CO 80004 5B 151 26 55 Road Noble Energy Production,Inc. 4C 96 25 1625 Broadway, Ste.2000,Denver,CO 80004 56 Road Noble Energy Production,Inc. 5A 49 25 1625 Broadway, Ste. 2000,Denver,CO 80004 5B 43 26 57 Gas Pipeline Noble Energy Production, Inc. 5A 52 25 1625 Broadway, Ste.2000,Denver,CO 80004 5B 49 26 58 Field Ditch Livingston Leigh Livestock of Weld County,LLC 4A 75 25 4124 Spring Canyon Ct,Fort Collins,CO 80525 59 Concrete Irrigation Lateral Sally A. Parsons 4A 41 25 P.O. Box 336665,Greeley,CO 80633-0612 4B 44 25 4C 45 25 60 Fence Livingston Leigh Livestock of Weld County,LLC 2 45 37 4124 Spring Canyon Ct,Fort Collins,CO 80525 61 Stock Tank with Windmill Livingston Leigh Livestock of Weld County,LLC 2 N/A N/A 4124 Spring Canyon Ct,Fort Collins,CO 80525 62 Underground Irrigation Pipe Livingston Leigh Livestock of Weld County, LLC 2 40 37 4124 Spring Canyon Ct, Fort Collins,CO 80525 63 Syphon Livingston Leigh Livestock of Weld County,LLC 2 40 37 4124 Spring Canyon Ct,Fort Collins,CO 80525 64 Field Ditch Livingston Leigh Livestock of Weld County, LLC 2 N/A N/A 4124 Spring Canyon Ct,Fort Collins,CO 80525 65 Concrete Irrigation Lateral Livingston Leigh Livestock of Weld County,LLC 2 38 37 4124 Spring Canyon Ct,Fort Collins,CO 80525 66 Gas Well(Sloan 3) Blue Chip Oil, Inc. 2 66 37 155 E. Boardwalk Dr,Ste.400,Fort Collins,CO 80525 67 Gas Pipeline Blue Chip Oil,Inc. 2 76 37 155 E. Boardwalk Dr,Ste.400,Fort Collins,CO 80525 67.5 Fenced Petroleum Tanks Blue Chip Oil, Inc. . 1 A 174 47 155 E. Boardwalk Dr, Ste.400, Fort Collins,CO 80525 68 Field Ditch Livingston Leigh Livestock of Weld County,LLC 2 N/A N/A 4124 Spring Canyon Ct,Fort Collins,CO 80525 69 House Livingston Leigh Livestock of Weld County,LLC 2 154 37 4124 Spring Canyon Ct,Fort Collins,CO 80525 70 Natural Gas Pipeline DCP Midstream(formerly Associated Natural Gas) I A 144 47 1324 N. 7th Ave,Greeley,CO 80631 (assumed in easement) 71 Overhead Electric Line Xcel Energy I A 140 47 1500 6th Avenue,Greeley,CO 80631 72 Telecommunications facilities Qwcst Corporation,Attn: Don Somer I A 150 47 12680 WCR 58,Greeley,CO 80634 73 Driveway and Mailbox Dana L.Christiansen I A 133 47 12269 CR 64 1/2,Greeley,CO 80634 74 Fence Dana L.Christiansen IA 153 47 12269 CR 64 1/2,Greeley,CO 80634 75 Waterline(not field located) North Weld County Water District I A 142 47 P.O. Box 56, Lucerne,CO 80646 76 Road Vernon J and Patricia Etter IA 62 47 12344 County Road 64.5,Greeley,CO 80631-9342 77 Overhead Electric Line Xcel Energy 1 A 78 47 1500 6th Avenue,Greeley,CO 80631 78 Fence Lafarge West, Inc. 1 B 67 39 10170 Church Ranch Way,Ste 200, Westminster,CO 80021 Vernon J and Patricia Etter 12344 County Road 64.5,Greeley,CO 80631-9342 79 Fence Lafarge West,Inc. 1B 44 39 10170 Church Ranch Way,Ste 200, Westminster,CO 80021 Kenneth Eugene Tigges 12406 WCR 64 1/2,Greeley,CO 80631 80 Fence Sally A.Parsons I C 320 30 P.O. Box 336665,Greeley,CO 80633-0612 Kenneth Eugene Tigges 12406 WCR 64 1/2,Greeley,CO 80631 81 Fence Sally A. Parsons 3 100 25 P.O. Box 336665,Greeley,CO 80633-0612 4A 100 25 4B 99 25 82 Fence Ed and Susie Ann Orr 5B 43 26 1813 61st Avenue,No.200,Greeley,CO 80634 Sally A. Parsons 5C 44 26 P.O. Box 336665,Greeley,CO 80633-0612 83 Fence Ed and Susie Ann On 5B 70 26 1813 61st Avenue, No.200,Greeley,CO 80634 Weld County 5C 68 26 915 10th St,Greeley,CO 80632 84 Concrete Bike Path Weld County 5B 52 26 915 10th St,Greeley,CO 80632 5C 51 26 85 Fence Ed and Susie Ann Orr 5B 72 26 1813 61st Avenue, No. 200,Greeley,CO 80634 86 Fence Sally A. Parsons 4C 43 25 P.O. Box 336665,Greeley,CO 80633-0612 Broe Land Acquisitions II, LLC 5C 41 26 252 Clayton St.,4th Floor, Denver,CO 80206 87 Fence Lot Holding Investments, LLC 4C 94 25 301 Centennial Dr.,Milliken,CO 80543 88 Fence Lot Holding Investments, LLC 4C 73 25 301 Centennial Dr., Milliken,CO 80543 Sally A. Parsons P.O. Box 336665,Greeley,CO 80633-0612 89 Fence Livingston Leigh Livestock of Weld County, LLC 4A 25 25 4124 Spring Canyon Ct,Fort Collins,CO 80525 Sally A. Parsons 4C 57 25 P.O. Box 336665,Greeley,CO 80633-0612 90 RCP Irrigation Lateral Sally A. Parsons 4C 41 25 P.O. Box 336665,Greeley,CO 80633-0612 91 Fence Lot Holding Investments, LLC 2 82 37 301 Centennial Dr.,Milliken,CO 80543 Notes: I. N/A appears in the above table for those existing structures which will be removed prior to mining. 2. *appears in the above described table for structures that may exist but were not field located. 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