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Home My WebLink About20101616.tiff SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW(USR)APPLICATION • FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# 1$ CASE#ASSIGNED: APPLICATION RECEIVED BY: PLANNER ASSIGNED: Parcel Number: 1207-36-2-00-002 (12 digit number-found on Tax 1.D. information,obtainable at the Weld County Assessor's Office,or www.co.weld.co.us). Legal Description E2NW4, NW4NW4 (Portion) , Section 36 , Township 3 North, Range 68 West Flood Plain: No Zone District: Residential , Total Acreage: 103 , Overlay District: Geological Hazard: No , Airport Overlay District: FEE OWNERS OF THE PROPERTY: Name: Carma Bayshore LLC c/o Chris Bremner Work Phone# 303-706-9451 _Horne Telephone: Email Address: Address: 188 Inverness Dr. West, Ste. 150 City/State/Zip: Englewood, CO 80112 OIL AND GAS LEASEHOLD OWNER: Name: Kerr-McGee Oil &Gas OnShore LP,(an Anadarko company)c/o Matthew Miller Work Phone# 720-929-6000 Home Telephone: Email Address: matthew.miller(a�anadarko.com Address: 1099 18th Street, 6'h Floor City/State/Zip: Denver, CO 80202 • APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications signed by Authorized Agent): Name: Kerr-McGee Oil & Gas OnShore LPjan Anadarko company) Address: 1099 18th Street,6th Floor City/State/Zip: Denver, CO 80202 Business Telephone: 720-929-6000 Fax No: . 720-929-7303 PROPOSED USE: Kerr-McGee Oil & Gas OnShore LP intends to use this site as a location to directionally drill six oil and gas wells and relocate and augment the existing associated production facilities to produce hydrocarbons from underlying formations known to have commercial potential for the production of such substances. I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my (our) knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicting that the signatory has the legal authority to sign for the corporation. • Signature: Owner or Authorized Agent Date Signature: Owner or Authorized Agent Date EXHIBIT • 2 2010-1616 SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW(USR)APPLICATION • FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# 1$ CASE#ASSIGNED: APPLICATION RECEIVED BY: PLANNER ASSIGNED: Parcel Number: 1207-36-0-00-029 (12 digit number-found on Tax I.D.information, obtainable at the Weld County Assessor's Office,or www.co.weld.co.us) Legal Description N2NE4 (Portion) , Section 36 , Township 3 North, Range 68 West Flood Plain: No Zone District: Residential , Total Acreage: 77 , Overlay District: Geological Hazard: No , Airport Overlay District: FEE OWNERS OF THE PROPERTY: Name: Carma Bayshore LLC c/o Chris Bremner Work Phone# 303-706-9451 Home Telephone: Email Address: Address: 188 Inverness Dr. West, Ste. 150 City/State/Zip: Englewood, CO 80112 OIL AND GAS LEASEHOLD OWNER: Name: Kerr-McGee Oil &Gas OnShore LP, (an Anadarko company)c/o Matthew Miller Work Phone# 720-929-6000 Home Telephone: Email Address: matthew.miller ananadarko.corn Address: 1099 18'"Street, 6`" Floor City/State/Zip: Denver, CO 80202 • APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications signed by Authorized Agent): �I Name Kerr-McGee Oil & Gas OnShore LP (an Anadarko company) Address: 1099 189' Street, 6'"Floor City/State/Zip: Denver, CO 80202 Business Telephone: 720-929-6000 Fax No: 720-929-7303 _I PROPOSED USE: Kerr-McGee Oil& Gas OnShore LP intends to use this site as a location to directionally drill three oil and gas wells and relocate and augment the existing associated production facilities to produce hydrocarbons from underlying formations known to have commercial potential for the production of such substances. I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my(our) knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicting that the signatory has the legal authority to sign for the corporation. J' / �� r 14. Signature: Owher or Authorized Agent Date Signature: Owner or Authorized Agent Date • 411 4ID 41/ • KerrNtGee Kerr-McGee Oil&Gas OnShore LP A subsidiary of Anadarko Petroleum Corporation 1099 18th Street Denver,CO 80202 (720)929-6000 February 24,2010 Weld County Department of Planning Services Mr. Kim Ogle Planning Manager 918 10 Street Greeley,CO 80631 Re: Application for Oil and Gas Special Use Permit Carma 4-36, 5-26, 8-36, 12-36,21-36,22-36,28-36,32-36 and 41-36Wells Township 3 North,Range 68 West,6th P.M. Section 36:N/2 Weld County,Colorado Parcel# 120736000029 Parcel# 120736200002 Dear Mr. Ogle: Enclosed please find four copies of the updated Certificate of Conveyance documentation including warranty deeds, as well as an original and three copies of a Use by Special Review(USR)Permit Application for parcel number 120736000029. Also included is a copy of the USR Permit application for parcel number 120736200002. Please note the original permit for this parcel was included with the application packet submitted February 19,2010. I apologize again for the inaccurate information that was previously submitted and thank you for your time and consideration to our application. Should you require further information, please do not hesitate to contact me at 720-929-6303. Very truly yours, - cGee Oil&Gas s nShore LP Kim M.Cooke Land Analyst • Enclosures • • 4,1 • KerrNtGee Kerr-McGee Oil&Gas OnShore LP A subsidiary of Anadarko Petroleum Corporation 1099 18th Street Denver,CO 80202 (720)929-6000 February 18,2010 Weld County Department of Planning Services Mr.Kim Ogle Planning Manager 918 10 Street Greeley,CO 80631 Re: Application for Oil and Gas Special Use Permit Carma 4-36,5-26,8-36, 12-36,21-36,22-36,28-36,32-36 and 41-36Wells Township 3 North,Range 68 West,6th P.M. Section 36:N/2 Weld County,Colorado Parcel# 120736000029 Parcel# 120736200002 • Dear Mr.Ogle: Enclosed please find four copies of Ken-McGee Oil & Gas OnShore LP's (an Anadarko company) Site Specific Development Plan and Use by Special Review (USR) Permit Application. This application is to directionally drill nine4(9)oil and gas wells from two surface locations. These wells fall within the limits of a Planned Unit Development(PUD) in Weld County, Colorado. In addition please find a copy of the Approved Emergency Response and Fire Prevention Plan, a check in the amount of $2,500.00, a Site Specific Development Permit Application form and a digital copy of the complete application packet. Please note upon receiving staff comments to the application, all corrections and full documentation will be submitted with the fmal application. At your earliest convenience, please review the application for completeness and respond with any comments and/or questions after the projected seven day review period. I look forward to hearing from you and should you require further information,do not hesitate to contact me at 720-929-6714. Very truly yours, Kerr-McGee Oil &Gas OnShore LP Kim M.Cooke • Land Analyst Enclosures • Application for Use by Special Review Proposed Drilling of Oil and Gas Wells Carma 3-36, Carma 5-36, Carma 8-36, Carma 12-36, Carma 21-36, Carma 22-36, Carma 28-36, Carma 32-36 and Carma 41-36 Township 3 North, Range 68 West, 6th P.M. Section 36: N/2 Weld County, Colorado Parcel # 120736000029 Parcel # 120736200002 • Applicant: Kerr-McGee Oil & Gas OnShore LP An Anadarko Company 1099 18th Street Denver, Colorado 80202 "1 Aft-Gee February 18, 2010 • TABLE OF CONTENTS 1. Use by Special Review Application 1-1 1.1 Application Form 1-1 1.2 Copy of Check 1-3 2. Executive Summary 2-1 2.1 Description of Intended Use 2-1 2.2 Site Improvements 2-1 2.3 Characteristics of Installation 2-1 2.4 Characteristics of Drilling and Completion Operations 2-1 2.5 Characteristics of Maintenance 2-2 2.6 Disposal Methods Statement 2-2 2.7 Relative Plans 2-2 3. Use by Special Review Questionnaire 3-1 3.1 Explain, in detail,the proposed use of the property. 3-I 3.2 Explain how this proposal is consistent with the intent of the Weld County Comprehensive Plan. 3-1 3.3 Explain how this proposal is consistent with the intent of the Weld County Code, Chapter 23 (Zoning)and the zone district in which it is located. 3-1 3.4 What types of uses surround this site? Explain how the proposed use is consistent and compatible with surrounding land uses. 3-1 3.5 Describe, in detail,the following: 3-1 3.5.1 I-low many employees are proposed to be employed at this site? 3-1 3.5.2 What are the hours of operation? 3-1 3.5.3 What type and how may structures will be erected (built)on this site? 3-2 3.5.4 What type and how many animals, if any,will be on site? 3-2 3.5.5 What kind(type, size,weight)of vehicles will access this site and how often? 3-2 3.5.6 Who will provide fire protection to this site? 3-2 3.5.7 What is the water source on the property(both domestic and irrigation). 3-2 3.5.8 What is the sewage disposal system on the property (existing and proposed)? 3-2 3.5.9 if storage or warehousing is proposed, what type of items will be stored? 3-2 3.6 Explain the proposed landscaping for the site. The landscaping shall be separately submitted as a landscape plan map as part of the application submittal. 3-2 3.7 Explain any proposed reclamation procedures when termination of the Use by Special Review activity occurs. 3-3 3.8 Explain how the storm water drainage will be handled on the site. 3-3 3.9 Explain how long it will take to construct this site and when construction and landscaping is scheduled to begin. 3-3 3.10 Explain where storage and/or stockpile of wastes will occur on this site. 3-3 Carma Wells i T2N-R65W-12: SE/4SE/4 Weld County, Colorado Executive Summary • 311 Stormwater Management/Erosion Control Plans 3-5 4. Weld County Road Access Information Sheet 4-1 5. Property Ownership Documents 5-1 5.1 Title Document 5-1 5.1.1 Evidence of Leasehold Ownership 5-1 5.1.2 Oil, Gas and Mineral Lease 5-3 5.2 COGCC Permits 5-7 5.2.1 Carma 3-36 5-7 5.2.2 Carma 5-36 5-11 5.2.3 Carma 8-36 5-15 5.2.4 Carma 12-36 5-19 5.2.5 Canna 21-36 5-23 5.2.6 Carma 22-36 5-27 5.2.7 Carma 28-36 5-31 5.2.8 Carma 32-36 5-35 5.2.9 Carma41-36 5-39 5.3 Memorandum of Surface Use Agreement 5-43 6. Certificate of Conveyances 6-1 6.1 Certificate 6-1 6.2 Warranty Deed/s 6-3 6.2.1 Reception Number 6-3 7. Soils Report 7-1 • 8. Affidavit and Certified List of Surface Owner Names 8-I 8.1 Copy of Affidavit of Surface Owners 8-I 8.2 Surface Owners within 500' 8-3 8.3 Surface Owners within 500' 8-1 I 9. Affidavit and Certified List of Mineral Owner Names 9-1 9.1 Affidavit of Interest Owners- Mineral and/or Subsurface 9-1 9.2 List of Interest Owners—Mineral and/or Subsurface 9-3 10. Emergency Response Contact List 10-1 11. Special Review Plat 11-3 11.1 Special Review Plat 11-3 • Carma Wells T3N-R68W-36: N/2 Weld County, Colorado Executive Summary • 2. Executive Summary 2.1 DESCRIPTION OF INTENDED USE Kerr-McGee Oil & Gas OnShore LP (KMG), an Anadarko company, intends to use two existing oil and gas operations areas as locations to directionally drill nine (9)oil and gas wells. These wells will be known as the well names listed in Section 1.2 table. For simplicity, the wells in this application will be referred to in the document as "the wells." The desired outcome of this application is to permit the wells to all formations. The purpose is to produce hydrocarbons from underlying formations known to have commercial potential for the production of such substances. 2.2 SITE IMPROVEMENTS KMG shall construct two operations areas of approximately three acres. This space will be utilized for the purpose of drilling the wells to sufficient depths and to adequately test all formations as follows: Well Name Well Name Carma 3-36 Carma 22-36 Carma 5-36 Carma 28-36 Carma 8-36 Carma 32-36 Carma 12-36 Carma 41-36 Carma 21-36 41 A Site Plan is included with this Application for further use and review(See Maps). After the wells have been drilled to their total depths and completed as wells capable of production, KMG will reclaim the drill site. The reclamation will be in accordance with the applicable rules and regulations of the Colorado Oil and Gas Conservation Commission (COGCC). If any of the wells are not capable of production, that specific well (or wells) will be plugged and abandoned as a dry hole and the same reclamation of the site will apply. If the wells are completed as producers, the well head locations will encompass a fenced and gated area approximately twelve (12) feet by twelve (12) feet each. The fences will be constructed of acceptable material to KMG and Weld County's requirements. Flow lines will he laid to connect these wells to production facilities located in the N/2 of Section 36, Township 3 North, Range 68 West.6th P.M. 2.3 CHARACTERISTICS OF INSTALLATION These wells will have a wellhead assembly installed on site. Additional tank batteries, separators, meter houses and possible emissions control devises will be installed, replacing the existing production facilities. Pumping units may he installed well pressure necessitate their use. 2.4 CHARACTERISTICS OF DRILLING AND COMPLETION OPERATIONS KMG management will utilize authorized employees and professional contractors to conduct the drilling and completion operations on site. The actual drilling phase is approximately six (6) to eight (8) days per well, under normal circumstances. Drilling will be continuous, 24 hours a day, for this • six to eight day period. Completion operations will be performed on each well following the drilling Carma Wells --- 2-1 T3N-R68W-36: N/2 Weld County, Colorado Executive Summary phase. The production facilities will be installed and the wells put on-line. The surface will be re- graded to its prior condition as nearly as practicable. The entire process from building location to reclamation will take approximately 120-180 days for both pads. 2.5 CHARACTERISTICS OF MAINTENANCE A lease operator will inspect the wells on a regular basis under normal conditions and as required by any special circumstances under the supervision of the KMG Area Manager. 2.6 DISPOSAL METHODS STATEMENT • All liquid and solid wastes(as defined in the Solid Wastes Disposal Sites and Facilities Act, 30-20-100.5. C.R.S., as amended)shall be stored and removed for final disposal in a manner that protects against surface and ground water contamination. • No permanent disposal of wastes shall be permitted at this site. l'his is not meant to include those wastes specifically excluded from the definition of solid waste in the Solid Wastes Disposal Sites and Facilities Act, 30-20-100.5,C.R.S.,as amended. • Drilling mud will be spread in a manner approved by the COGCC. • A commercial size trash bin for removing debris will be located on site. This bin will be for use by all parties affiliated with the operation. • Human waste will be properly handled by portable sanitary facilities located on site. KMG contracts a sanitary service. They will provide and maintain the self-contained sanitary facilities throughout the oil and gas operation. • Produced water will be disposed of off site as approved by the COGCC. 41. • Waste materials shall be handled,stored and disposed in a manner that controls fugitive dust, fugitive particulate emissions, blowing debris and other potential nuisance conditions. 2.7 RELATIVE PLANS • Noise: KMG will meet all applicable noise requirements set forth by COGCC regulations during operations. Exhaust from all engines, motors and related equipment. shall be vented in a direction away from occupied buildings where practical. • Vibration: KMG will meet all applicable vibration requirements set forth by COGCC regulations during operations. There is not any unusual vibration anticipated from the proposed operation. • Air and Water Quality: KMG will meet all applicable air and water quality requirements set forth by COGCC regulations during operations. KMG will comply with the Colorado Department of Public Health and Environment regulations by filing an Air Pollution Emissions Notice (A.P.E.N.), along with any other additional required application data. If production volumes exceed required thresholds, KMG will install emissions control devices as warranted to obtain required reductions of ozone precursors. The COGCC sets forth specific requirements for casing depth in order to protect ground water sources. Produced water will be hauled away and properly disposed of in accordance with COGCC regulations. • Odor: KMG will meet all applicable odor requirements set forth by COGCC regulations during operations. There is not any noxious, prolonged or unusually high amounts of odor expected from the proposed operation. • Visual Impacts: KMG will meet all applicable visual impact requirements set forth by COO CC regulations during operations. The permanent facilities will be painted in accordance with COGCC regulations and in a manner to harmoniously blend with the Carma Wells 2-2 T3N-R68W-36: N/2 Weld County, Colorado Executive Summary • surrounding environment. The site will be reclaimed to as near the original grades as practicable. • Environmental Impacts: A representative of KMG's Environmental Group will perform a site inspection to clear the location for environmental issues (including wildlife and wetlands)prior to site construction activities. KMG will comply with all applicable wildlife and wetland regulatory requirements. Impacts to regulated wildlife species and jurisdictional wetlands are not expected. • Waste: Please refer to section above,2.6—Disposal Methods Statement. • Dust Abatement: Fugitive dust and fugitive particulate emissions shall be controlled on this site. The facility shall be operated in accordance with the approved dust abatement plan at all times. • Noxious Weed Control: All locations, including wells and surface production facilities,will be kept free of weeds, rubbish and other waste material. During drilling, production and reclamation operations, all disturbed areas shall be kept reasonably free of noxious weeds and undesirable species as practicable. • Public Safety: The completed wellsites will be surrounded with a 6' chain-link fence and gate with adequate lock. KMG personnel will monitor the wellsites regularly upon completion of the wells. Authorized representatives and/or KMG personnel shall be on-site during drilling and completion operations. A complete Emergency Response Plan has been prepared and reviewed by the local Fire Authority. A copy of this Plan is included with this application(See Emergency Response and Fire Protection Plan). • Access Roads: KMG will utilize the existing lease access road from WCR 28. The road will • be properly engineered with a width of 20' feet and an aggregate base course surface of 6" inches. The aggregate base will be compacted to a minimum density of 95% of the maximum density. Access will be properly graded and culverts shall be utilized where necessary. • Carma Wells 2-3 T3N-R68W-36: N/2 Weld County, Colorado Use By Special Review Questionnaire • 3. Use by Special Review Questionnaire 3.1 EXPLAIN, IN DETAIL,THE PROPOSED USE OF THE PROPERTY. Nine natural gas wells will be directionally drilled on the subject property. The oil, water and natural gas produced from the wells will be separated on the property. The oil and water will be temporarily stored in tanks on the property until the oil and water can be removed from the property by trucks. The natural gas will be metered and transported off the property through a natural gas gathering pipeline. 3.2 EXPLAIN HOW THIS PROPOSAL IS CONSISTENT WITH THE INTENT OF THE WELD COUNTY COMPREHENSIVE PLAN. The Weld County Comprehensive Plan recognizes that "oil and gas development in the County is an integral part of the County economy, and has a substantial direct and indirect impact on current and future land use". KMG and Carrna Bayshore, LLC, the property owner, are working together to enter into a Surface Agreement (SUA). A copy of the Memorandum of Surface Agreement is included with this packet. The proposed well locations are within existing oil and gas operations areas, thus minimizing the impact to the future use of the surface. KMG will follow all state and county regulations and conduct its operations as a prudent operator. 3.3 EXPLAIN HOW THIS PROPOSAL IS CONSISTENT WITH THE INTENT OF THE WELD COUNTY CODE, CHAPTER 23(ZONING)AND THE ZONE DISTRICT IN WHICH IT IS LOCATED. Compatibility with existing and proposed uses is assured because KMG will be entering into a surface use agreement with the surface owner and future developer of the site. No currently • productive agricultural lands or residential areas will be impacted. 3.4 WHAT TYPES OF USES SURROUND THIS SITE? EXPLAIN HOW THE PROPOSED USE IS CONSISTENT AND COMPATIBLE WITH SURROUNDING LAND USES. The proposed drilling site is located on zoned residential land; however, there are currently no structures within 200' foot radius of any of the proposed well heads. 3.5 DESCRIBE,IN DETAIL,THE FOLLOWING: During the drilling of the wells there may be as many as 15 individuals on-site. The entire drilling and completion phase for the subject wells will take approximately 120-180 days. It is anticipated that the subject wells will be drilled consecutively. Once the wells have been drilled and completed and the production facilities built, it is anticipated that one individual will visit the site on a regular basis. 3.5.1 How many employees are proposed to be employed at this site? There will be no employees permanently stationed at the well site. A lease operator will visit the site on a regular basis to off-load oil and water and perform any needed maintenance. Remote maintenance equipment will be installed at this site to allow KMG to take measurements and be alerted to maintenance issues. 3.5.2 What are the hours of operation? The wells and production facility will affectively be operated 24 hours a day. • Carma Wells T 3-1 T3N-R68W-36: N/2 Weld County, Colorado Use By Special Review Questionnaire • 3.5.3 What type and how may structures will be erected (built)on this site? During the drilling phase, a drilling rig approximately 140' feet tall and associated structures will be temporarily utilized to drill the wells. After the wells have been drilled and completed, within the Oil and Gas Operations Areas, there will be 9 new wellheads consisting of valving that stands about 4-5 feet above ground level. Underground flowlines will run from each well head to the separators. There will be a production facility at each pad site consisting of oil and water tanks. Low profile (10') tanks will be utilized. There will also be an area consisting of 3 separators (one single and one dual). These areas will also a meter house and Emissions Control Devices (ECD) and/or Vapor Recovery Unit(VRU). Permanent buildings will not be constructed on this site. 3.5.4 What type and how many animals, if any, will be on site? There will not be any animals on site. 3.5.5 What kind (type, size,weight)of vehicles will access this site and how often? During the initial drilling phase, trucks will move the drilling rig in 18 loads and the total weight of the rig is 1,200,000 pounds. During the period of drilling and completion operations there will be ongoing heavy duty vehicle traffic with trucks weighing up to 40,000 pounds along the existing lease access road. Once drilling and completion of the wells has concluded, there will be a one-half ton pickup on the property regularly as well periodic access for removal of oil and water from onsite storage tanks. 3.5.6 Who will provide fire protection to this site? Mountain View Fire Protection District will be the fire protection provider. • 3.5.7 What is the water source on the property (both domestic and irrigation). Any water necessary for the drilling and completion phase will be brought in to the site. During the producing phase KMG will not need a water source. Bottled water will be utilized for drinking and hand washing. 3.5.8 What is the sewage disposal system on the property (existing and proposed)? There will be no need for a permanent sewage disposal system. During the drilling and completion phase human waste will be properly handled by portable sanitary facilities that are located on site. KMG will contract a sanitary service company to provide and maintain the self-contained sanitary facilities throughout the oil and gas operation. A commercial size trash bin will be located on site for use by all parties affiliated with the operations for removing debris. 3.5.9 If storage or warehousing is proposed,what type of items will be stored? The each production facility is proposed to house 1-2 water tanks with capacity to hold 100 bhls, and 3-5 oil storage tanks with capacity to hold 300 bbl each. The water and oil will be trucked away on a regular basis as needed. 3.6 EXPLAIN THE PROPOSED LANDSCAPING FOR THE SITE. THE LANDSCAPING SHALL BE SEPARATELY SUBMITTED AS A LANDSCAPE PLAN MAP AS PART OF THE APPLICATION SUBMITTAL. KMG plans no landscaping around the wellheads or the production facility. The production area facility will be fenced and covered in road base. Additionally, the immediate area around the wellheads will be covered by road base. S Carma Wells 3-2 T3N-R68W-36: N/2 Weld County, Colorado Use By Special Review Questionnaire • 3.7 EXPLAIN ANY PROPOSED RECLAMATION PROCEDURES WHEN TERMINATION OF THE USE BY SPECIAL REVIEW ACTIVITY OCCURS. Once the wells have been drilled, KMG will reclaim the disturbed land to its original condition, as reasonably possible. Once the wells have stopped producing, KMG will plug and abandon the wells, and reclaim the land in accordance with Colorado Oil and Gas Conservation Commission rules and regulations. 3.8 EXPLAIN HOW THE STORM WATER DRAINAGE WILL BE HANDLED ON THE SITE. KMG will adhere to all Colorado Dept. of Public Health and Environment's rules and regulations in regards to storm water discharge. If applicable, the applicant shall obtain a stormwater discharge permit from the Colorado Department of Public Health and Environment, Water Quality Control Division. 3.9 EXPLAIN HOW LONG IT WILL TAKE TO CONSTRUCT THIS SITE AND WHEN CONSTRUCTION AND LANDSCAPING IS SCHEDULED TO BEGIN. KMG's intention is to drill each well in consecutive order. Once drilling begins, it will take approximately 120-180 days to complete the drilling, completion and reclamation process. It is anticipated that KMG will commence drilling operations within 3 months of approval of the USR application. 3.10 EXPLAIN WHERE STORAGE AND/OR STOCKPILE OF WASTES WILL OCCUR ON THIS SITE. No wastes will be stored and/or stockpiled on this site. Drilling mud will be removed and spread on lands designated for this purpose and produced water will be disposed of off site in a manner approved by the Colorado Oil and Gas Conservation Commission Rules and Regulations.• A commercial size trash bin will be located on site for use by all parties affiliated with the operations for removing debris. Human waste will be properly handled by portable sanitary facilities that are located on site. • Carma Wells 3-3 T3N-R68W-36: N/2 Weld County, Colorado • STORMWATER MANAGEMENT PLAN AREA 2 WATTENBERG FIELD, COLORADO REVISED MARCH 2007 Prepared for: KERR-MCGEE ROCKY MOUNTAIN LLC 3939 Carson Avenue Evans, Colorado 80620 Prepared by: LT ENVIRONMENTAL,INC. 4400 West 46th Avenue Denver, Colorado 80212 (303)433-9788 • L' • ( TABLE OF CONTENTS 1.0 CERTIFICATION 1 2.0 INTRODUCTION 2 3.0 SWMP TEAM 2 4.0 SITE DESCRIPTION 3 4.1 Project Overview . . 3 4.1.1 Development (Construction/Drilling/Completion/Reclamation)— Active Site3 4.1.2 Production (Operation/Maintenance)—Completed Site 3 4.1.3 Abandonment and Final Reclamation 3 4.2 Site Maps and Pad Information 4 4.2.1 Area 2 Topographic Map 4 4.2.2 Specific Well Site Pad Information/Map 4 4.3 Identification of Potential Pollutant Sources 4 4,3,1 Loading and Unloading Operations 4 4.3,2 Dust or Particulate Generating Processes or Activities 4 4.3.3 On-site Waste Disposal Practices 5 4,3.4 On-site Pad Activities 5 4.3.5 Off-site Soil Tracking Controls 5 4.4 Receiving Waters 5 4.5 Runoff Coefficient 5 5.0 BEST MANAGEMENT PRACTICES 5 5.1 Material Handling and Spill Prevention 5 5.2 Sediment and Erosion Control 6 5.2.1 Erosion Reduction and Control 6 5.2.2 Sediment Reduction and Control 7 5.2.3 Structural Practices 7 5.2.4 Implementation of Structural Practices 8 5.2.5 Non-Structural Practices 8 5.2.6 Pad Preparation 9 5.2.7 Excavation 9 5.2.8 Streams and Sensitive Areas 9 6.0 FINAL STABILIZATION AND LONG-TERM STORMWA'I'ER MANAGEMENT 10 6.1 Long-term Management 10 • ( TABLE OF CONTENTS (CONTINUED) 6.1,1 Reclamation 10 6.1.2 Post-Construction Structural Measures 11 6.1.3 Finally Stabilized 11 7.0 INSPECTION AND MAINTENANCE PROCEDURES I I 7.1 Preventive Maintenance I I 7.1.1 Good Housekeeping 12 7.1,2 Material Storage 13 7.1.3 Waste Removal 13 7.2 Inspections 13 7.2.1 14-day Inspection/Active Site (Development Work Phase) 14 7.2.2 Monthly Inspection/Completed Site (Production Work Phase) 14 7.2.3 Finally Stabilized 14 7.2.4 Winter Conditions 14 7.2.5 Precipitation Event Inspections 14 • 8.0 EMPLOYEE TRAINING 15 9.0 RECORD KEEPING 16 10. 0 SWMP REVIEW/CHANGES 16 FIGURES FIGURE 1 -AREA 2 TABLES TABLE 1 -WELL SITE LOCATIONS APPENDICES APPENDIX A-TECHNICAL DRAWINGS APPENDIX B-SI lb SPECIFIC INFORMATION • ii • 1.0 CERTIFICATION Kerr-McGee Rocky Mountain LLC (Kerr-McGee) has prepared this Stormwater Management Plan(SWMP) for Area 2 of the Wattenbcrg Field, Colorado. I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system or those persons directly responsible for gathering the information, the information submitted is, to the hest of my knowledge and belief, true, accurate, and complete, I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations. Signature Date Name Title • �i • ( 2.0 INTRODUCTION On June 30, 2005, the State of Colorado stormwater regulation went into effect to require Colorado Discharge Permit System (CDPS) permits from the Water Quality Control Division (WQCD) for stormwater discharges from construction activities associated with small construction activity for oil and gas sites that disturb between one and five acres. As part of that requirement, this Stormwater Management Plan (SWMP) has been prepared to identify possible pollutant sources to stormwater and to set out Best Management Practices (BMPs) to reduce or eliminate possible water quality impacts. 3.0 SWMP TEAM The Sr. Superintendent Drilling for Kerr-McGee Rocky Mountain LLC (Kerr-McGee) is responsible for the Implementation and revision of the SWMP. The Sr. Superintendent Drilling has the authority to dedicate the financial and human resources to implement the SWMP. The Sr. Superintendent Drilling with this responsibility is: Mr. Fred Clausen —Sr. Superintendent Drilling, Evans, Colorado Office:(970) 330-0614 The Sr. Superintendent Drilling will ensure that the SWMP is followed, will coordinate SWMP inspections, and will coordinate maintenance of stormwater records. The Area 2 Superintendent will provide support for the Sr. Superintendent Drilling with the implementation of the SWMP. The Area 2 Superintendent is: Mr. Keith Kilcrease- Area 2 Superintendent Office:(970) 330.0614 Both the Sr. Superintendent Drilling and the Area 2 Superintendent manage the SWMP Team. Other foremen or designated personnel in Area 2 may also assist in stormwater inspections and maintenance of records. Overall, the SWMP Team is responsible for: • Implementing spill /upset clean up procedures; • Notification to local authorities and local residents in the event that a significant release of stormwater and sediment that leaves a pad area; • Coordinating various stages of best management practices and implementation; • Conducting inspections; • Maintenance of atl records; and ▪ Coordination of a preventive maintenance program and housekeeping measures. , • 2 L/ 4.0 SITE DESCRIPTION 4.1 Project Overview Kerr-McGee currently owns or leases natural gas mineral rights in the Wattenberg Field area which includes Adams, Boulder, Broomfield, Denver, Larimer and Weld Counties, Colorado. Kerr-McGee has split the field into three project areas for operations management purposes. A map of the project area (Area 2 within the Wattenberg Field) is provided as Figure t, The development of natural gas wells is generally accomplished in three distinct work phases. The first phase is the Development (construction/drilling/completion), the second phase is the Production (operation/maintenance), and the third phase is the Abandonment with final reclamation, Each work phase is briefly discussed below, 4.1.1 Development (Construction/Drilliin¢/Completion/Reclamation)—Active Site Approximately 3A to three acres of surface terrain is disturbed during the construction of a new pad, The Development phase includes the following activities: pad construction, well drilling, well completion, gas Bowline installation, access road building, and pad area reclamation. Pad reclamation is accomplished by back filling the reserve pit, contouring disturbed soils to conform with the surrounding terrain, replacing the stockpiled top soil, seeding of disturbed soil areas in order to reestablish a cover vegetation. 'The completion of a well (gas production) generally triggers a one-year time period in which the reclamation phase of work should be completed. 4.1.2 Production(Operation/Maintenance)—Completed Site The production phase includes the operation and maintenance activities during natural gas production. The typical equipment on a pad during the production phase consists of a wellhead, a separation unit, from one to several 300-barrel capacity aboveground tanks for condensate, and an sump for storing produced water. Reclamation activities during this phase include maintenance of revegetated areas and maintenance of the erosion and sediment control structures. Natural gas wells in the field are projected to produce for approximately 20 to 30 years. 4.1.3 Abandonment and Final Reclamation When the natural gas production of a well is exhausted it will be abandoned. Upon well abandonment each borehole will be plugged,capped, and all surface equipment will be removed. Subsurface pipelines will be removed to specified locations and plugged. The pad area will be reclaimed by contouring disturbed soils to conform to the surrounding terrain, by replacing the stockpiled top soil, by seeding of disturbed soil areas in order to reestablish cover vegetation, and by construction of erosion and sediment control structures as needed. For the purposes of this SWMP and the stormwater construction general permit, only active and completed sites will be monitored. Once a completed site is revcgetated and stable, it will be removed from this stormwater construction SWMP. • 3 4:SP • 4,2 Site Maps and Pad Information Most of the well pad sites are on private land. The pad information is provided on Table I and are discussed in the sections below. Appendix 13 contains site-specific information. 4.2.1 Area 2 Topgraphic Man A topographic map of the area is provided as Figure I. 4,2.2 Specific Well Site Pad Information/Man Pad construction site boundaries, soil disturbance areas, wellhead locations on the pad, typical drill rig layout, chemical storage locations, and maps showing any other pertinent site specifics are attached in Appendix B. Example base maps of typical pad construction sites have been included as a reference. Site specific features may he hand-drawn. 4.3 Identification of Potential Pollutant Sources To identify,evaluate, and assess potential sources of stormwater runoff pollutants that may he at a pad,the following activities and pollutant sources were evaluated: • Loading and unloading operations; Significant dust or particulate generating processes; • On-site pad,waste disposal practices; • On-site pad activities: • Off-site soil tracking controls; and • Significant spills or leaks of toxic or hazardous substances. 44.1 Loadig and Unloadintr Operations The majority of loading and unloading activities occur during well drilling and well completion activities. Well drilling and completion surfactants, friction reducers, dilute hydrochloric acid, potassium chloride solutions, drilling mud, and other fluids are transported or unloaded directly into the well from trucks, on site tanks, and the reserve pit. Dry drilling mud components are contained in paper bags and are stacked on pallets, which are unloaded using a forklift or by hand. In the event of a spill, the SWMP material handling and spill prevention procedures will be followed. Other activities include unloading of drill pipe, completion pipe (casing), and natural gas line pipe,which are riot potential pollution sources. 4.3.2 Dust or Particulate Generatine Processes or Activities An evaluation of dust or particulate generating processes or sources was completed and one source was identified that may produce dust and particulates. Dust and/or particulates generated from vehicle traffic on graveled access roads may produce fugitive emissions. Dust and • 4 • particulate generation is at its highest during dry and hot times of the year. If dust from vehicle traffic on graveled access roads becomes significant, dust suppression procedures will be implemented that include road watering or the application of dust suppressants. 4.3.3 On-site Waste Disposal Practices All waste from materials imported to the construction site are removed for disposal/recycling to an appropriate licensed disposal/recycling facility. This also includes sanitary sewage facilities (typically portable). No waste materials shall be buried, dumped, or discharged to waters of the State. 4.3,4 On-site Pad Activities The most common substances that may be spilled on a pad area are: I) fuel and lubricants used by vehicles and construction equipment; 2) frac fluids (surfactants, friction reducers, hydrochloric acid, and potassium chloride) used during well completion procedures; 3) production water from the well; and 4) produced crude oil and condensates. 4.3,5 Off-site Soil Tracking Controls Properly constructed and graveled roads and pads provide the best off-site tracking control. Access road entrances adjacent to paved county roads are often graveled to prevent or minimize any off-site soil tracking from pad areas or access roads. 4.4 Receiving Waters Drainages within Area 2 include: the South Platte River, Boulder Creek, Beebe Draw, Speer Canal, Box Elder Creek, Barr Lake and Milton Reservoir. The drainage for each pad is entered on each site specific inspection form. 4.5 Runoff Coefficient Runoff coefficients for pad locations within Area 2 vary from 0,10 to 0.30 and are not expected to significantly change. Pad areas range from flat rangeland to hilly areas. 5.0 BEST MANAGEMENT PRACTICES 5.1 Material Handling and Spill Prevention Hazardous materials and petroleum products used in construction of a pad include fuel and lubricants for construction equipment and vehicles; small quantities of paints and solvents; water or gel based frac fluids (surfactant, friction reducer,dilute hydrochloric acid,potassium chloride) used during well completion; produced water; and, crude oil/condensate. Material Safety Data Sheets (MSDS) for materials to he used or that are produced are filed at Kerr-McGee's Denver Office. Refueling and lubrication of vehicles and equipment will be conducted a minimum of 100 feet from flowing streams and wetlands. Any spills will be promptly remediated and contaminated • t5 • ( materials will he hauled off-site and disposed of/recycled properly. Quantities of fuel and lubricates will be limited to "as-needed" for the immediate operations underway. 5.2 Sediment and Erosion Control Sediment and erosion control will be accomplished through a combination of construction techniques, vegetation and re-vegetation, and structural features. The book entitled "Field Manual on Sediment and Erosion Control Best Management Practices for Contractors and inspectors" (Field Manual) by Jerald S. Fifield or similar guidance will he referenced for assistance with controls or BMPs, when needed. Typical configurations of structural controls discussed below and technical drawings are provided in Appendix A. 5.2.1. Erosion Reduction and Control Construction of a pad requires the removal of vegetative cover and topsoil that increases peak flood flows, water velocity, and the volume of stormwuter runoff. An increase in water runoff volume and velocity results in increased erosion. Erosion reduction and control will he accomplished by using the following erosion control methods: • diversion and control of runoff water; • vegetation planting and maintenance;and • application and maintenance of mulches. Runoff control procedures that will be used to mitigate and reduce the erosive transport forces of stormwater during and after construction of a pad will include but will not he limited to the following; • Check dams; • Earth berms; • Culvert protection; • Diversion dikes; ▪ Conveyance channels; ▪ Slope drains; ▪ Rock-lined ditch; • Mulches; and . Geotextiles. • 6 • 5.2.2 Sediment Reduction and Control The control and reduction of sediment contained in stormwater runoff will be accomplished by the use of'sediment containment systems. Sediment containment systems are hydraulic controls that allow the deposition of suspended particles by gravity. Sediment controls that will be used to mitigate and control sediments generated from the erosive transport forces of stormwater during and after construction of a pad will include but will not be limited to the following: . Silt fences; . Bale dikes; . Sediment traps; . Sediment basins; . Vehicle track pads; and . Continuous berms. 5.2.3 Structural Practices The following structural site management practices are expected to reduce, minimize and control 0 erosion and sediment transport. . In order to minimize disturbances associated with installation of pads, level and gently sloping terrain outside the project area will not be graded,except where necessary. . To prevent tracking of sediment (mud and rocks) onto public roads, portions of access roads may he graveled, as appropriate. Other means such as track pads/angular rock or cattle guards may be utilized if appropriate. . Silt barriers (e.g. brush dams, rock filter dikes, silt fences, hay bales, or water bars) will be installed as needed on down-gradient portions of project areas. . Side hill cuts (cut slopes) will be kept to a minimum to protect local resources while providing a safe and stable plane for the efficient and safe use of equipment. . Where conditions warrant, erosion control structures such as berms, water bars, diversion or collection channels, terraces, or culverts will be constructed to dived water away from project areas. These control structures will also reduce soil erosion along and adjoining areas disturbed during construction. . In areas that have steep slopes, water bars or runoff diversions may be installed. Guidelines for the spacing of diversion structures are listed below. When used, water bars will generally begin and end in undisturbed ground at approximately a 2%slope. • 7 —/ • $p ing:forBrosipu•Gontr^d1Strtwtlu s.0A-00dBook) Slope Diversion Spacing(feet) 2% 200 2-4% 100 4-5% 75 5+% 50 • Culverts may be installed at a grade ranging from 2-5 percent. Inlet protection may include inlet aprons and rock armoring around the culvert perimeter while below grade inlet sumps may be installed to enhance sediment deposition. Outfall protection may include the use of a rock barrier to slow the discharge of runoff water. Culvert pipe or outfall protection will be extended to the toe of the slope on the discharge end. • During the reclamation of a pad all cut and fill slopes in steep terrain will be graded and contoured to blend into the adjoining landscape. Natural drainage patterns will also be reestablished. When possible cut and fill slopes will be constructed so they are no steeper than a 1 to 3 ratio. • Reclaimed pads may have a fence constructed around areas that have been seeded. These fences will be installed in order to keep livestock and vehicles off reseeded areas. 5.2.4 Implementation of Structural Practices The following sediment controls may be utilized at pad areas: vegetative filters, brush dams,rock filter dikes, silt fences, straw bale dikes, water bars, sediment traps, sediment basins, or equivalent sediment controls. These sediment controls structures will be installed so as to protect down slope surface waters, wetlands and roads from sediment flow due to runoff from a precipitation event. All graded surfaces, walls, dams and structures, vegetation, erosion and sediment control measures and other protective devices identified in the pad plan will be maintained, repaired, and restored as necessary. 5.2.5 Non-Structural Practices Sediment and erosion control can be implemented via non-structural BMPs. Non-structural BMPs are BMPs that are not engineered as a stormwater barrier and are capable of limiting the amount of potential pollutants available to reach receiving water bodies. Non-structural BMPs can achieve the same effect as structural BMPs through filtration and the settling of sediment load within a perimeter. • 8 /LTA • r Pad sites can include a buffer zone of natural vegetation used as a non-structural BMP to inhibit sediment travel. Appendix B includes a typical pad site figure with the use of a buffer zone as a BMP. 5.2.6 Pad Preparation Existing vegetation cover and topsoil will be removed only where necessary for the operation of equipment and construction of the pad. Trees and large shrubs that are not cleared from the pad area will be protected from damage during construction by avoiding them with equipment. For example, the blade of a bulldozer will maintain in a raised position except for areas designated. Trees will be cut or trimmed only to facilitate clearing, grading, and safe installation of a pad. Trees outside the area of disturbance will not be cut, but may have overhanging limbs removed by cutting. 5.2.7 Excavation Excavated materials will be stored next to the pad in order to construct a flat pad. Topsoil will be stockpile in one location and other soils will be stockpiled in a separate and different location. Excavation in especially sensitive areas may be conducted according to special techniques as specified by the landowner/agency representative. Materials excavated will be utilized as backfill when practical. An exception may be excess rock generated by rock blasting excavates activities. In these areas, some select backfill materials may be required to protect the project area. Excess rock may be pushed into rock filter dikes, used in energy dissipation zones below culverts,constructed into rock check darns within grassed swales, or distributed over a portion of the project area. All cut slopes made in steep rolling terrain during construction will be re-graded and contoured to blend into the adjoining landscape and natural drainage patterns will be reestablished. Temporary workspace areas will be restored to approximate pre-construction conditions. 5.2.8 Streams and Sensitive Areas The majority of Kerr-McGee's pads or access roads do not intrude or encroach on any wetland acreage. If a wetland is designated to be within a pad construction area, Kerr-McGee will obtain permits from Army Corp of Engineers, as appropriate. During construction near perennial streams, lakes or wetlands, the utilization of sedimentation (detention) basins, silt fences, straw hales, or fabric filters may be considered in order to prevent suspended sediments from reaching downgradient watercourses, streams, lakes or wetlands. Where appropriate water bars or sediment filters,such as staked straw bales or silt fences, will be constructed adjacent to crossings to reduce potential sedimentation in streams or wetlands. • L 9 � �i • ( 6.0 FINAL STABILIZATION AND LONG-TERM STORMWATER MANAGEMENT 6.1 Long-term Management 6.1.1 Reclamation Unless otherwise directed by the landowner or a jurisdictional authority, rocks, cut vegetation, and other surface material temporarily stockpiled during construction will he redistributed as backfill on the project area. Disturbed areas will be seeded using seed mixes appropriate to the location, unless the landowner wishes to return the land to agricultural production. Local soil conservation authorities with the U.S. Natural Resources Conservation Service, surface owners and/or reclamation contractors familiar with the area may be consulted regarding the correct seed mix to be utilized. On terrain where drill seeding is appropriate, seed may be planted using a drill equipped with a depth regulator to ensure proper depth of planting. The seed mix will be evenly and uniformly planted over the disturbed area. Drilling will be used where topography and soil conditions allow operation of equipment to meet the seeding requirements of the species being planted. Broadcast seeding will occur on steep terrain and on areas where the cut vegetation and rocks were redistributed over a right-of-way. Seeding will be done when seasonal or weather conditions are most favorable according to schedules identified by the jurisdictional authority, reclamation contractor, or landowner. Whenever possible, seeding will he timed to take advantage of moisture, such as early spring or late fall, which will benefit from winter precipitation. Seed mixes will be planted in the amount specified in pounds of pure live seed/acre. No primary or secondary noxious weeds shall be in the seed mix. The reestablishment of vegetative cover as well as watershed stabilization measures will be scheduled during the working season and before the succeeding winter. Re-vegetation will be accomplished as soon as practical following the reclamation of a pad. Mulch will be laid down during re-vegetation as appropriate. The cut vegetation and rocks will act like mulch in the areas where they are applied. Where straw or hay mulch is applied, the mulch will be applied and crimped into the soil. The need for fertilizers will be determined in conjunction with the landowner, If fertilization is necessary, the rates of application will be based on site-specific requirements of the soil. A special condition exists for pad sites within crop lands. According to the COMAE Stormwater Fact Sheet dated February 3, 2006: when portions of an oil and gas site are restored to crop land in accordance with the COGCC rules, and returned to the control of the fanner following interim reclamation, permit coverage is no longer required for those areas, and it is not • L 10 7 • necessary for the oil and gas site to either stabilize or reassign permit coverage far the area restored to crop land. Therefore,permit coverage may be inactivated jar an oil and gas construction site every if stabilized unpaved surfaces exist and/or disturbed land that has been restored to crop land remains an vegetated as long as construction activities have been completed and all other disturbed areas revegetated in accordance with the definition of Finally Stabilized. When this condition exists for a pad site, inspections will be discontinued and the site will be removed from the stormwater construction permit program. 6.1.2 Post-Construction Structural Measures Permanent water bars and trench plugs may be installed on steep slopes and at wetland and stream crossing boundaries. After restoration and reclamation work is complete, required repairs to vegetation and erosion and sediment control structures will he completed as required by routine scheduled inspections and/or in response to other notifications. 6.1.3 Finally Stabilized According to stormwater regulations, "finally stabilized means that all disturbed areas have been either built on,paved, or a uniform vegetative cover has been established with a density o1'a least 70 percent of pre-disturbance levels and the vegetation cover is capable of providing erosion control equivalent to pre-existing conditions,or equivalent permanent,physical erosion reduction methods have been employed." 7.0 INSPECTION AND MAINTENANCE PROCEDURES 7.1 Preventive Maintenance Preventing stormwater from passing through pad areas where contamination may occur is a key element of preventative maintenance. Another key element of preventative maintenance is the routine inspection and repair of erosion and sediments control structures. Regular cleaning of diversion ditches to keep them free of debris and sediment will be practiced. Spillways and culvert systems will also he routinely cleaned and inspected. These maintenance procedures will help to insure that the stormwater does not leave intended channels. The following preventive maintenance procedures will be implemented to reduce or eliminate potential stormwater contamination sources that may exist on a pad: • Storage containers, fuel tanks, and equipment used during construction activities should be visually inspected routinely for obvious leaks. These inspections should be conducted by site and contractor personnel as they perform their routine duties; ▪ Drums will he properly labeled so an enclosed substance can be quickly identified. OSHA-approved labeling and sign systems will be followed for all secondary containers; • 11 jfin' � • . Erosion damage to the earthen berms, outfalls, silt barriers, collection channel, containment ponds, and any erosion and sediment control will be repaired within seven days of discovery; . Areas of stained soil will be inspected in order to identify the sources of the staining. Contaminated soil will be removed and properly disposed; Energy dissipating material, such as riprap, will be placed at the stortnwater outfalls to prevent erosion damage. Although there may be a number of pads that may not currently have distinct outfalls, energy-dissipating material such as cobbles or gravel may he used to minimize erosion due to stormwater. Barrow ditches should be free from vegetation and debris which may cause impounding of stormwater; and • Stormwater management structures will be cleared of debris and repaired when necessary; and surface runoff controls such as curbing, culverts, and ditches will be used to control runoff. 7.1.1 Good Housekeeping In accordance with Best Management Practices that provide procedures to eliminate contamination; direct, divert, and contain stormwater; Kerr-McGee has implemented a number of housekeeping practices that will help prevent soil sediment, trash, and toxic or hazardous substances from entering navigable waters. 4110 Housekeeping practices include regular cleaning, organization and maintenance of pad equipment and erosion and sediment control structures throughout the project. Areas where chemicals are stored and used at the project are stored in buildings or containers where there is no potential for stormwater contact. These areas include producing pads that typically consist of wellheads,separator units,dehydration units,and 300-barrel capacity aboveground stock tanks. The following items will be addressed in order to maintain a clean and orderly pad during the development, production, and abandonment phases of work: . Inspect pad areas routinely; . Correct deficiencies noted during inspections; . Clean and maintain stortnwater management structures and components; • Routine trash collection and disposal; . Familiarize employees and contractors with spill clean-up equipment and storage locations;and Familiarize employees and contractors with good housekeeping procedures and pad pollution prevention procedures. / 12 /L' _/ • 7.1.2 Material Storage The following good housekeeping practices will he followed al the material storage. areas: . Storage containers will he stored away from direct traffic to prevent accidents. They will also have proper labels; • Dumpsters and trash receptacles will he enclosed in order to prevent the dissemination of refuse; • Storage areas will be kept free of refuse, • Chemical substances used at pads will be properly labeled and will have proper spill containment; and . Chemical substance containers will be clearly labeled with an MSDS kept on file. 7.1.3 Waste Removal All waste from materials imported to the construction site will be removed for disposal/recycling to an appropriate licensed disposal/recycling facility, including sanitary sewage facilities (typically portable). No wastes of imported materials shall he buried, dumped, or purposely discharged to waters of the State. There are no other pollutant sources from areas other than • construction areas, 7.2 Inspections Inspections will be conducted to document the status of erosion and sediment control structures and re-vegetation efforts. Inspection reports will document non-compliance conditions such as uncontrolled releases of mud, muddy water, or measurable quantities of sediment that are found off-site. Required actions or modifications as documented on the inspection form will he implemented in a timely manner, and completed within seven calendar days after the inspection. Routine inspections will be conducted at pad areas during all phases of work and after a precipitation-related event. All inspection observations will he recorded on the SWMP inspection form that is located in this section, The inspection form provides a standardized format that will be completed during all inspections. A special condition exists for pad sites within crop lands, which is detailed under the Reclamation section of this plan. When pad sites are being returned to a farmer for agricultural usage, and all other disturbed areas have been stabilized or revegetated, the sites may be removed from the stormwater construction permit program. Personnel responsible for inspections shall be trained to evaluate stormwater management concerns, erosion and sediment control structures, and to evaluate pad and surrounding area vegetation. • i3 `/ • 7.2.1 14-day Inspection/Active Site(Development Work Phase) The development work phase includes the construction, drilling, completion, and interim reclamation of the natural gas wells. This phase of work is classified as the active phase and the inspection frequency is every 14 days and after any precipitation or snowmelt event that causes surface erosion. The pad perimeter,disturbed areas,and any stored materials that are exposed to precipitation will be inspected for evidence of, or the potential for pollutants that may enter the drainage system. Erosion and sediment control systems that are identified on the SWMP Inspection and Maintenance form, which is site specific, will be inspected to ensure that they are in good condition and operating property. 7.2.2 Monthly Inspection/Completed Site(Production Work Phasel After final pad reclamation has been initiated and during the production phase of a pad, inspections will be conducted at least once a month, This inspection frequency will be continued until the pad area achieves or reaches final stabilization vegetation conditions, at which time inspections are discontinued. 7.2.3 Finally Stabilized When a pad site has reached final stabilization, it will he removed from the stormwater construction inspection routine. 7.2.4 Winter Conditions Inspections will not be required at pads where snow cover exists over the entire site for an extended period as long as melting conditions do not exist. 7.2.5 Precipitation Event Inspections Active pad inspections will be conducted within 24 hours after a precipitation or snowmelt event that causes surface erosion. Surface erosion generally occurs when precipitation or snowmelt results in surface water flow. If the precipitation infiltrates, then no inspection is required, In order to determine if surface erosion or surface water flow resulted from a precipitation or snowmelt event, a selected few pads will he evaluated for surface erosion, off- site sediment transportation, and/or off-site release of muddy water. These selected pads may have a worst case surface erosion or sediment transportation scenario. If the selected pad and associated areas do not show any off-site surface erosion, off-site sediment release and transport, or off-site muddy water releases, all of the remaining active and completed pads will not be inspected. Inspection results of the pads will determine or trigger the inspection of all active and completed pads. If a significant number of the pads show off-site surface erosion, off-site sediment transportation, or release of muddy water then all of the remaining pads will be inspected. A pad inspection will be positive if any one of the three categories (surface erosion, sediment transportation, or release of muddy water) is marked yes, Selection of a pad is based (( on the following criteria: 14 • . A pad that has a cut or fill slope that has a steeper grade than 1:4 • A pad that has erosion and/or sediment control structures installed • A pad that has vegetation or erosion situations During the inspection of pad areas, associated access road should also be inspected. All culverts should he inspected to see if any inlet,outlet or other problems exist. Inlets or outlets to culverts may have to be cleaned in order to insure proper drainage. If for any reason the above pad erosion and water flow inspection procedure does not achieve the desired result, then all active and inactive pads will be inspected with in 24 hours after a precipitation or snowmen event that causes surface erosion. 8.0 EMPLOYEE TRAINING Kerr-McGee will inform and train employees who are involved with SWMP activities. Training will cover information and procedures contained in the SWMP and will be conducted on an annual basis. Personnel work responsibilities will he used to identify the appropriate attendees. Safety and environmental elements of the SWMP will also be covered. At a minimum, the following topics will be presented and discussed during SWMP training: • Introduction to CDPS Stormwater Permit Stormwater regulations; • Purpose of stormwater permit, • Requirements of stormwater permit. • Components of the SWMP • Identification of potential pollutant sources; • Best management practices; • Preventative maintenance; • Good housekeeping; • Inspections and maintenance, and • Record keeping. • IS L _� • 9.0 RECORD KEEPING The following record keeping procedures will be followed in order to provide accurate and complete documentation of events associated with the stormwater management program. A SWMP Inspection and Maintenance Form is located in Appendix B and will be used for all SWMP inspections. Routine inspections will include the 14-day, monthly, and after a precipitation event. Stormwater related inspection records, site maps, and diagrams will he also kept on file. All stormwater related records will be filed and stored by Kerr-McGee for a minimum of three years. 10. 0 SWMP REVIEW/CHANGES Kerr-McGee will amend the SWMP whenever there is a significant change in design, construction, operation, or maintenance, which has a significant effect on the potential for the discharge of pollutants to water of the state,or if the SWMP proves to be ineffective in achieving the general objectives of controlling pollutants in stormwater discharges associated with pad activities. • • 16 i D COUNTY ROAD ACC SS INFORMATION jug Weld County Public Works Department Del_/ 1/V12O? 1111 H street,P.O,Box 758, Greeley,Colorado UDOU Phone: (970)356.4000,Ext.3750 Fax: (97O)304-6497 Kerr-McGee Oil & Gas Onshore LP 1 AlnlicantName RQhhj Sniflpr Phone 720-929-6614 Address 1O99 18th_Street. _Suite l80( ity Denver _State CO Zip80202 2 Address or location of'access 1=nj.M LA*.+z /I) JS G`r o wcs7 ‘,2 r 1(1 Section 3 L Township 3 M _ Range !o e Suodiivnston Block Lot Weld County Road ;s aB Side of Road Soorr-/ Distance from nearest intersection ex.?,r 5 3. Is there an o de in0 acmes to the property? Yee No . 0 of ec cesaes 3 4. Plopused Use: . ti Permanent 0 Residential/Agricultural 0 industrial 0 Temporary Q Subdivision 0 Commercial 0 Other waweMrMr�y►+.y • _w_. ..N..f/M. ►+MMM.sN.M►....M+..... ..t._M_____ 5. Silo Sketch Wand far Access D+stripdnn: � ' A ti+ = �lK�tf41r{II _ RES r• Residential WCR 0G = oil&Gas 1l D.R. = Ditch Road w o[(s w 9 0 House 0 = Shed C C R R A Proposed Access I /3 A :Existing Access i L_______. ...] . N WCR r______,_,____i• OFFICE USE ONLY. Road —ADTT _Date Accidents Date Road ADT Pete _Accidents , Date, Drainage Requirsmenl CUtveil_ ______ _ Size.___��.. LOn9ih Special CpndR iiv._ 0 Install Mon wrhonred U Infonmotion Insufficient Reviewed 9l ___ _ -- The vI:VANET\Dev Rcvlcw\ACCESS INFO SIIEI T.doc Title and Permit Documents 5. Property Ownership Documents 5.1 TITLE DOCUMENT 5.1.1 Evidence of Leasehold Ownership Through Leasehold acquisitions, Kerr-McGee Oil & Gas OnShore LP (KMG), an Anadarko company, obtained the rights to explore and drill for, as well as produce, oil and gas under the Oil and Gas Leases described below. Copies of the Oil and Gas Leases are attached hereto. LEASE Lessor: State of Colorado Board of Land Commissioners Lessee: Energy Minerals Corporation Date: October 21, 1970 Lands: Township 3 North, Range 68 West,6'h P.M. Section 36: N/2NE/4, NW/4; E/2SE/4 Weld County, Colorado 411 Carma_Wells 5-1 T3N-R68W-36: N/2 Weld County, Colorado • rorel it.I.:I IRO' 1 COLOUADO , OIL AND GAS LASE No. OO ..,:- A.D. 19 ��. THIS LEASE AGREEMENT.Dated this......Z1' -day of..0.C.traber and through the STATE BOARD OF made and entered into by and between the STATE OF COLORADO. acting by LAND COMMISSIONERS, party of the first part and hereinafter called the "lessor", and . . SN7L'i1G" �JNE2.ALS..,C=..03ATIQM • iii l in^ Go.luzucLQ..3Q.z>32 ^ v party of the second part, hereinafter called the "lessee"; WITNESSETH THAT WHEREAS,The said lessee has applied to the State Board of Land CommissioneOrss for an oil rdsd gas bonse covering the land herein described,and has paid a filing fee in the amount of $. consideration of$ I.,�11a,00 fixed by the lessor as an additional consideration for the granting of this lease,and WHEREA r 'all of the requirements relative to said application have been duly complied with and said application has been app,- ed and allowed by the Stale Bourd of Land Commissioners; THEREFORE.For and in consideration of the premises,as well as the payment of rentals hereinafter provided for. and of the covenants arid agreements hereinafter contained. on the part of the lessee to be demised., kept t and dperformed,d• the sold lessor has granted and demised,leased and let, nd by thesepr aents development does grant, production l of oil and gal, or steely unto Inc sold lessee for the sole and only purpose exploration. either of them, thereon and therefrom with the right to own all oil and ndgaa�th rights of s so produced and saved therefrom thereefr and oe reserved as royally by the lessor under the terms of this lease, toga for pipe lines,telephone and telegraph lines,tanks and fixtures for producing and caring for such products,and housing and boarding employees-and any and all rights and privileges necessary for the economical operation of said land for oil and ens,with right to the use of all otherwise unappropriated water from said lands, but not from lessor's water wells y improvement've pieced ies dtorterrectedl of removing on the prem sesther by thering or within essee,Ins udingxt a fright tospull ail ccasing,sub ect,however the terra hereof,an andr to the p the conditions hereinafter set out, the following described land situated In the county of....... ;i:.l. State of Colorado,and more particularly described as follows: SECTION TOWNSHIPRANGEDE DESCRIPTION OF LAND ,--...--. . AGE N/2 NE/4; NW/4; E/2 SE/4 36 3-North 68-West • • a Kurince Nalentx:_ ,,.,'.:r i't: x3391; N41Nt7: „54148 S ITA: 16907; ...E::sr:• Y3416'.;i.sEI 1575.3 . Land Fund:.......... SC hO.O.1. . containing... ...... .....320...Q0...........,acres,more or less: TO HAVE AND TO HOLD Said land.and all the rights and privileges granted hereunder,to and unto the icssee for a primary term of five 141 yours from the hour of twelve o'clock noon on the date hereof,and w long thereafter as nil and Iran. or either of them. Is produced in pnying quantities from said land or e lessee Ee diligently med ll be diligently iin bona fide drilling or reworking operations on said land. Drilling or reworking operation. formed if there le no delay or cessation thereof for a greater period than o thirtyisconsecuutive are nddayyssdunless and extension sin writing Is granted by lessor. Provided that such drilling reworking term or any extension thereof or while this lease Is in force by reason of production of oil and gas or either of them,or that such reworking is commenced immediately upon cessation of production for the purpose of re-establishing the some, and provider)further that such production in commenced during such primary term or any extension thereof, or while this loser Is In force by reason of such drilling of reworking operations or other production, • In consideration of the premises, the parties covenant and agree tor follows:I. During the primary term hereof lessee shall pay to leIWOY an annual rental of$ 16 0...00 computed at r acre or fractiem thereof of the lands covered hereby,and in the event that,upon the rate.4$ . .. ..�.:0... ... pe' the expiration of wed plenary term,this lease is extended for an additional term of five 15i yeare as provided for In Paragraph It hertnf,lessee.shell during maid intended period prey to the lessor an annual rental at double the rate above specifier) for the land. covered hereby. Extension of the term of thin lease solely by discovery and production of oil or gas;ie in the preceding paragraph provided,shall not operate to Increa;o the rentals payable under this paragraph that is to say. the rental In effect at the time of discovery and pereluetlon hail not be increased by reason of extension of the n,hut remaining'llife of thisaone lease`The rentals as reenon only f such above provided o shall be annual pnid nanwilly in advanceh unt on oriti be[be eachuanniverng ! wiry or tii'date of this lease. ise.for ls•i,rz hill 1'•ayltiho to war:ie royalty. ire additio on the loanedn ton the mink provided ded to Lhriello es,ethea or that following}mat•iddahly lost,the eau On nil.one-eighth of the nil produced and saved front the kneed premixes. • At the opium of lessor,Insane may take ill royalty oil In kind,in which event lessee shalt deliver such royally- oil to lessor inn the lrrtsrd pminisre, free of enat or reduction,into the pipe linos or storage t;enki d,'eiurniir,l by leaser. but lessor shall not in such cave tie required to provide free tankage for any such oil for a longer period than one month'miter the same IN run into tanks. • When paid In cash.the royalty.shall be calculated upon the reasonable market value of the oil at the well which shall not he deemed to he less than the price.actually paid or agreed to be raid to the lessee at the well by the purchaser thereof; and in no event Shall the royalties lie based upon a market value at the well less than the posted price In the field for.such oil, or in the absence of a posted price In the field for such oil, upon a market value tt the well less than the prevailing price received by other producers In the field for oil of like grade and gravity at the time such oil Is run into pipelines or storage tank... On gas, including easinghead gas or other gaseous substance, one-eighth of the reasonable market value at the well or of the price received by lessee at the well, whichever is greater,of all gas produced from the leased premises and sold or utilized by lessee. Where gas is sold ale el- awns act ct that hashets been approved prl be the lessor, the reasonable market value of such gas for determining approval by lessor of the price of which such gas Is sold under such contract; provided.a tow`veer threto at no obligate Ivan any way except terms of any such agreement shall operate to make lessor a party as herein provided, and lessee agrees to save lessor harmless from any such bligatiio nsacM1 costs shall not he lessee lei All costs of marketing the oil and/or gas produced shall be borne by t directly or indirectly reduce the royalty payments to the lessor. which report shall be filed with lessor on or before the last day of each month,,and shall be accompanied 3. Lessee agrees to make a monthly production report of the production on the leased premises covering the pre- ceding full settlement tlh, Pgreet royalties the gas produced from by full for allbooks antl recordssnhowing the production month and disposition leof lease; oil ane drtnor n to keep and to a wive a possession, to examine the same. Royalties due the leased premises shall b to permit.the lessor A or its agents,me ut emall nt5,rea unless n eles the hours, are shown to be Incorrect, nr a under this lease be calculated on actual tankage measurement, more accurate meads of measurement Is provided. 4. The lessee may at any time,by paying to the State of Colorado,acting by its State Board of Land Commissioners. . all amounts then due as provided herein, surrender and cancel this lease insofar as the same covers all to the lands or n n ons or of the lands hereinideda that no partial l surd from render or cancellather itionllof this lease lty shall be forrle sllthans contiguous i tracts of surrendered; provided qprovided further tnat thisapp surrender forty heron or Cerein mental lot corresponding sh l cease and section; e lessee,lessor or any assignee of either 4hls surrender clause and the option herein reserved to the lessee shall cease and become absolutely inoperativeImme- diately ny fe concurrently iseasany the institution terms any suit m in abut in court no case shall hsurrender be effective until lessee shall to have made ad this lease, i ro its va express ftheo implied, full provision for conservation of minerals and protection of the surface righ of the and this leasesed shall rsnotses.be 5. All payments due hereunder shall be made on or before the day such payment is due,in cash or the date of this e lease. Nothing sd in or thishe Initial paragraphashall bee construed tosh extendeeds of the expiration ofny kthe primary regardless thereof beyond five(5)years from the date hereof, 6. The lessee, with the written consent of the lessor,shall have the right to assign this lease as to the entire lease- hold interest of such lessee in all or part of the lands covered hereby, not less, however, than contiguous tracts of • approximately forty 1401 acres or Governmental lot corresponding to a quarter-quarter section for any partial assignment.. t and for approval u of thhe assBoard. No the lessor m of mavi an assignment charge iretention the servant set foveh id [ge Cyalen regulations ionized or ape ove b Tle sr; a th of undivided . of ens suchr assignments or s or reservationon of s will royaltiesbe strictly will be r as or approved by lessor; and the effects if any, of any and no dispute between parties to any such and only as between the parties thereto,and outside the terms of this lease, of am terms or conditions hereof or to assignment or reservation shall operate to relieve the lessee from performance or postpone the time therefor. Lessor will and shall at all times be entitled teed notices required by k solely to the lthisess lease his and assIgnee shown on Its books as being the sole owner hereof,and for the sending obi hereby snap be apps d. a new of all terms and conditions hereof. If any assignment of a portiands,n of the lands covered same terms and conditions as a new lease shall be issued to the assignee covering the assigned lands, containing this (e o, and onian as tobI teem as andhis shall l be held to is ed,and the havereleased assignor all rights shall and benefbe its therefter discharged accruing oath further obligations ass and liabilities, respect to the assigned land, as If the same had never been a part of the subject matter of this lease. Although no t ore d,all soeverga on theffecting this lease rd of Land should he Commissioners in therecords of theMineral eDepartment of the State Land Board.ents of every kind and nature what- 7. offset wells located on adjoining laj Lessee agrees to reasonably'protect the leased premises from drainage by lands not owned by lessor,when such drainage is not reasonably compensated far by counter-drainage. It shall be presumed, for the purpose of this lease,that the production of oil and gas from offset wells results in drainage from the leased premises, unless lessee demonstrates t0 lessor's satisfaction by engineering,geo-• logical,or other data,that production from such offset well does not result in such drainage,^r that tthen ril drill- ing of a well or wells on leased premises would not accomplish the purposes of protecting post leased nce of uch nl. and lessee shall complyp with 5ethes. TBoard'ss ordercithereon he Boad's desion asnor,o then lieu ethereofeurrendern this lase sage sha ctoiany such undeveloped acreage as designated by the Board. (hi Upon discovery of ell and gas on the leased lands, lessee shall with reasonable diligenee proceed to develop said premises at a rate and to an extent commensurate with the economic development of the field in which the leased lands lie, ease shallject to Ill ll terms and l conditions os,locaalfordinances h T end of thisor resolutions applicable to performed and binding upon t headmrnistra- all laws, regulations, orddrb flan of grant lands owned by the Slate of Colorado. id In the event lessor r smelts the lands herein leased to be included within a unitization agreement, the terms of this lease and the operation of this Paragraph 7 shall be deemed to be modified to eonforn to skirt,uniti- zation agreement. When only a portion of the lands under this lease is committed to a unit.the lessor lie segregate the lends and Issue a separate lease for wish portion and the terms of the lease on that pot included in the unit shall be deemed to be modified to conform to such unit agreement. a Lessee shall, subject to applicable laws, regulations and orders binding upon the administration of state lands. operate and produce ail wells ugon the leased prem lees so long as the same are capable of producing in felting quantities, find shall Operate the name so as to produce at a rate commensurate with the rate except production rodu tih nnf ells on there ado^lest g hands nds • within the same field and within thc li nuts of good engineering practice, p as may is in ating n storage therefor, and except to for asuch well mtlations on or onthe leased ands productive of t gas etion only nd lessee unable to writing by scasses. If lessee o complete grant lessee suspension of his obligations to produc hero gas due to sack of e market therefor, u may pens period, it shall be produce hereunder until a suitable market for such gas can be found and during any such suspension deemed that gas is being produced hereunder In paying quantities. • h wall e No or- 9. The lessee agrees to notify the lessor of the location ofin eacht gas,shall r be commencing drilling thereon.building oeXPl other anent• impr.improvement. or production r wellln or including Pc Improvement. Including water well reservoir,without the written permission of the owner of said improvements. Lessee shall keep a correct Trig of each well drilled hereunder, showing by name or description the formations passed through, the depth at which each formation was reached, the number of feet of each size casing set in each well,where in ty 130) days act, and the total depth of each shall file t in the officeeof thehStat irBoard of Land after Commissione completion rs, at Denver, Colorado, a any well drilled hereunder, and complete or correct log of such well,together awith o a copy drll stemNtestgresults,score reecordsy log of the and analyses,well record such logs,perforations either of them, arc run, and also any.copy of ntained in reports required tofbelfled with the Oil and uction tests,if Gas lConservatonf any of the 1Commisaonnformation rsof 1 Colorado,hlthe arequirementsoof this paragraph for such information will be satisfied by the filing, with the Oil and Gas Conservation Commission,of extra copies of such reports as is required by Paragraph 19 hereof. crops. 10. Lessee shall be liable and agrees to pay for all dunoperations en es to the surface ofland thetland, lelivestock, understood growingthat water wells, reservoirs, or improvements caused by lessee's described unless Said a and s. the lessee and la derstoo shall no operations shall be commenced on the lands hereinabove have et a good and sufficient bon ah the lessor in ropn s,water or improvements as may be secure caused by lessee for or h� damage s the o of the land, livestock,and alogrowing assignee's operations of said lands and also compliance with all the provisions,conditions,covenants When obligations request d by this lease and the statutes of the State of Colorado,and rides and regulations thereto appertaining. lessor, lessee shall bury pipe lines below plow depth. Lessee shall set and cement sufficient surface casing to protect the fresh water wells of the area. 11.The lessee shall not remove any machinery or fixtures placed on said premises, other than drilling equipment, nor draw the casing from any well unless and until all payments and obligations currently due the lessor under the terms of this agreement shall have been paid nr satisfied 12. Should lessee discover any valuable products other than oil,gas,gasoline,caeinghead gas or other hydrocarbons on or within the leased premises, lessee shall within seven (71 days report such discovery tolessor, ndtlessee sse deemed have no right thereto because of such discovery; provided,that the terms—oil, gas gasoline to include any substance over which the United States Government assumes exclusive control. 13. If lessee shall initiate or establish any water right for the leased promises, the point of surface diversion or ground water withdrawal of which is on the!eased p cs the termination s,such right lll, if the surface rights of said premises are owned by lessor, become property of lessor,without 14. Upon failure or default of the lessee or any assignee,to comply with any of the provisions or covenants hereof, the lesser is hereby authorised to cancel this lease and such cancellation shall extend to and include all rights hereunder as to the whole of the tract so claimed,or possessed,by the lessee or assignee so defaulting,but shall not extend to nor affect the rights of any lessee or approved assignee claiming lands segregated by assignment from this lease; provided, that in the event of any such default or failure to comply with any of the terms and conditions hereof,lessor shall,before any such cancellation shall be made, send by certified mall to the lessee or assignee so defaulting, to the postoffice address of said lessee or assignee, as shown by the records of lessor, a notice of intention to cancel for such default, II specifying the same,and if within thirty (30) days from the date of mailing said notice, the said lessee or assignee shall have paid all rents or royalties in default, and shall have begun in good faith to correct such other default as may have been specified, and shall thereafter diligently prosecute the correction of such default,there shall not be a cancellation therefor If such default Is not corrected, or correction thereof is not begun in good faith as hereinabove required, within thirty (30) days after the mailing of such notice,tide lease will terminate and be cancelled by operation of this paragraph without further action by lessor,or further notice to lessee. t5. If the lessee shall have failed to make discovery of oil and gas or either of them In paying quantities during the primary term hereof,or during drilling operations commenced during the primary term hereof, the lessee may make written application to lessor to extend this lease for an additional term of five years as to all of the land covered hereby (excluding any lands theretofore surrendered am in Paragraph 4 provided, or assigned as in Paragraph 6 pro• videdl and the making of such extension shall be at the option of lessor. ations of theil and Gas Conservation 16. Lessee of will Colorado pp with blest statutory the administration of State owneddlands,l or to the de ele[me t and roduction ofC and ndo app of oil and gas thereon, and will furnish to the Oil and Gas Conservation Commission extra copies of all reports of any kind or nature that are required by said laws,rules and regulations to be furnished to the said Oil and Gas Conservation Commission of Colorado. 17.-Paying quantities" as used herein shall mean and refer to quantities of oil and gas or of either of them sufficient to pay for the current cost of producing same. 18. If lessor owns a lesser interest in the oil and gas deposits of the above described land than the entire and undivided fee simple estate, then the royalties and rentals herein provided shall be paid the lessor only in the proportion which Its Interest bears to the whole and undivided fee. 19. The benefits and obligations of this lease shall inure to and be binding upon the heirs, legal representatives, successore or assigns of the lessee; but no sublease or assignment hereof, or of any interest herein, shall be binding upon lessor until the same has been approved by it as provided for In Paragraph 6 hereof. IN WITNESS WHEREOF, The party of the first part hal hereunto signed and caused its name to be signed by the STATE BOARD OF LAND COMMISSIONERS, with the seal of the office affixed, and the lessee has signed this agreement,the day and year first above written. STATE BOARD OF LAND COMM IONERS yr /r-7 gY ((.4.44 ........si e, ......_... Recommended: Free Went r y, `f ' -/ , Resister Y r �e/ mil(_ Mineral Director I BY /J�""'^'�. G".,.o'rr .... &nxhtrr • / LF39xx .417•eir.9y1.Miparal.s...tQr.poration . ... By: ',1')/.7O,�%�. ? 1 •:.lt_____,-".4-- Weldon C. JulanliIrf Prsident rFORM� l r i 2 State of Colorado r:,-.',V.;;,, —t l ne(see Oil and Gas Conservation Commission .i .- t f` 1120 unto.Street.San 001,Denver,Colorado 80203 Phone i303i8O-2100 rat;303)694-2'0S APPUCATION FOR ^ L TO: 1 '7 1. �X Drik, n Deepen, a I- -1 Re-enter, 1 1 Recomplete and Operate •12 TYPE OF WELL Retying Pluggug Bo-u Surety'De j OIL ID GAS X COALBED7 OTHER: Sidetrack 20010124 I SINGLE ZONE MULTIPLE ZONES X COMMINGLE ZONES Complete me Attachment Chechliet .3. Name d opeceta Ken-McGee Oil CC O d Gas Onshore LP 4.COGCC Number 47120 OP ;-OO0C 5 Address P.O Box 173779 APD Ong 6 1 Copy City' Denver State CO Zip. 80217-3779 Form TA 6. Contact Name: Cheryl Light Phone: 720-929-6461 Fax' 720-929-7461 Well location p1St 7. Well Name CARMA Wee Number: 3-36 Topo map 8. Unit Name{if apply: Unit Number Mineral tease map 9 Proposed Total Measured Depth: 7981 Surface agrmtlStrety WELL LOCATION INFORMATION 30 Day notice Muer 10. Ob07: SENW Sec: 36 Two 3 Rng:_ 68 Meridian 6th.PM Deviated Drilling Plan Latitude: N.40.18578° Longitude. W.104.95557' Exception Location nyysi. Fll.,wu Request Footage At Surface. 1478 ® 1422 PNL Exception Loc Waivers 1 Field Name: Wattenberg Field Number: 90750 H2S Contingency Plan 12. Ground Elevation. 4865 13 Count. Weld i Federal Drilling Permit 14. GPS Data: - - Dale of Measurement 11/18/2009 PDOP Rearing: 2 instrument Operators Name. Travis Kraich • 15 II well is I I Directional p Horizontal(highly deviated), stdsrltk deviated drit ing plan. Boltomhole Sec Twp Rng: NENW-T3N-RBBW-Sec 36 NUM ELe Footage At Top of Prod Zone. 660 ® L 1980 I l'At Bottom Hole 660 gin i 1980 I I FWL, 16 Is location in a high density area(Rule 6030)? l l Yes [ No 17. Distance to the nearest building,pubic road above ground utility or railroad 1059 18 Distance to Nearest Property Line: 1411 19 Distance to newest wait permitted/completed in the same tonnwvon 995 20 LEASE,SPACING AND POOLING INFORMATION _ Objective Formation(s) Formation Code Spacing Order Number(s) Una Acreage Assigned to Well Unit Configuration(N/2,SDI,etc.) Nlobrara-Codell _ NB-CD 407 80 E2NW-T3N-R68W-Sec 36 J Sand JSND 232 320 N2-T3N-R68W-Sec 36 21. Mineral Ownership Fee (�X State Federal Indian Leased 70/8538 •22 Su face 0enserstr . Fee Stale Federal Indian 23. Is the Surface Owner also the Mineral Owner" L._Yes X No Surface Surety IDd 20010125 23a If 23 is Yes Is the Surface Owner(s)signature on the lease? Yes [No 23b If 23 is No [Surface Owners Agreement Attached or X $25,000 Blanket Surface Bond 052,000 Surface Bond 0$5,000 Surface Bond 24. Using standard Qtrge,Sec,Twp.Rng formal enter entire mineral lease description upon which this proposed well site is located(attach separate sneet/map tf you prefer): See Lease Attached(St of Colorado) 25. Distance to Nearest Mineral Lease Line. 660' 26. Total Acres in Lease 320 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? [Yes El No If Yes.attach contingency plan 28. Will salt sections be encountered dung dieing? I^I Yes I-7( No 29. Will salt(>15,000 ppm TDS CI)or oil based muds be used during drilling? Yes X No 30. If questions 27 or 28 are yes,is this location in a sensitive area(Rule 903)1 Yes No If 28,29 or 30 are"Yes"a pit permit maybe required. R`31. Mud disposal. Offsite Q Onsise Method Land Farming [Land Spreading I---1 Disposal Facility n Otter: NOTE The use of an earthen pa for Recornpletmn fluids requires a pit permit(Rule 905b.)II airlgas drilling,notify local fire officials. Sing Size of Hole I Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Surface 12-1/4" 8'--- --5/8" 24$ 800 560 BOO Surface Production 7-718 4-1/2" 11.6$ 7981' 200 7981' Liner NA . Stage Tool 32. BOP Equipment Type F Annular Prevent(n Double Ram [Rotating Head r--1 None 33. Comments No conductor casing will be used 34. Location ID: 336220 35. Is this application in a Comprehensive Drilling Plan? eves Olio a yes enter COPS _ 36 Is this application pan of a submitted Oil and Gee Location Assessment? jags Quo Signed Print Name: CHERYL LIGHT Title SENIOR REGULATORY ANALYST Date: Email• 1 Based on the information provided herein.this Application for Permit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved COGCC Approved Director of COGCC Date. Permit Number. Expiration Date. API NUMBER CONDITIONS OF APPROVAL,IF ANY' • 05. .1111..., ili.ltaliFaMMIINEIMMISIIISIIIIIMMII WELL LOCATION CERTIFICATE : CARMA 3-36 SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. NW SEC.36 N 88'58'2.6" E 2642.29' N 88'30'57" E 2633.50' NE SEC.36 $ CAP 33'4"ALUM.CAP et---- I N Y4 SEC.36 LS 23500 LS 18482 I 2Y2"ALUM.CAP I BH-660'FNL LS 28273 1980' FWL I SURFACE LOCATION 1n -Tr 10 I - GROUND ELEVATION=4865' q a 0 fl? NAD83 tlo I N A� LATITUDE=40.18578' o `" CARMA 3-36 •° ‘-, c,, LONGITUDE= 104.95557° c° CARMA 328 r,., BOTTOM HOLE LOCATION o --- ---1422'--- '- • I NAD83 tn rn in le LATITUDE=40.18804" o AMLIN STATE 6-36 LONGITUDE=104.95356° N on o STATE OF COLORADO' PDOP=2.04 L BB UNIT 1 I GPS OPERATOR:TRAVIS KRAICFI EY4SEC 36 W Ya SEC.36 _ _ _---_ - -- ------ -- - -----et 3Y4"ALUM.CAP 2Y2"ALUM.CAP - --- -. -� I LS 29420 LS 38065 LL.i NOTES n I o o THIS IS A DIRECTIONAL WELL C) 1 BH LOCATION TO BE 660'FNL&1980'FWL W d BH LOCATION PROVIDED BY CLIENT. a in N LAND SURFACE USE-DRYLAND CROP 6 ----, TWINNING PROPOSED WELL CARMA 32-36 z3 mTOBE15'SE PROPOSED WELL CARMA 32-36 TO BE W� 1488'FNL&1432'FWL N a)c 0 HAMLIN STATE 6-36 IS 66'S vo +,,7 STATE OF COLORADO BB UNIT 1 IS 127'SW u, O g SEE ATTACHED MAP FOR ADDITIONAL c° t/`1 Z IMPROVEMENTS WITHIN 400'. I v) S Y4 SEC.36 m ZYz"ALUM.CAP SE SEC. 36 SW SEC 36 LS 38065 2Y2"ALUM CAP 3Y4"ALUM.CAP S 8613'03" W 2637.33' ILLEGIBLE LS 18482 S 88'13'09" w 2637.41' WELL CARMA 3-36 TO BE LOCATED 1478' FNL AND 1422'FWL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND 0 S 0 0 1000 40.EXISTING MONUMENT ♦ =BOTTOM HOLE BH=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE:11=10001 SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES: CERTIFY TO KERR-MCGEE OIL S GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C 0 G.C.C,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO.215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 3-36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT ,,p, . ........1-1C - REDUCTIONSARC.,,0, VERTICAL=NAVD88; HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP %/t((, e�SO 3 THE BEARINGS SHOWN HEREON ARE BASED ON GPS OBSERVATIONS BETWEEN THE MONUMENTS SHOWN81i .' HEREON AS FOUND ON THE FIELD DATE BELOW. i � 4 4. DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED tut^ i' IN THE FIELD,WITH TIES TO WELLS MEASURED AT A PERPENDICULAR TO SECTION LINES JERRY F HARCEK JR,PLS 34997 COLORADO LICENSED PROFESSIONAL LAND SURVEYOR °•,•��'',.•••. '�+°• FOR AND ON BEHALF OF P F.S.,LLC 41vA. HIPM.H. . f IELO DATE: NEIL NAM: -- °. 11-18-O9 CARMA 3.36 MVO DM: -SURFACE LOCATION: NOTICE ACCORDING EO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION BASED UPON ANY Imo_ l'-..''',7 11-20.09_ _WELD COUNTY,COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT.IN NO EVENT INOIM.MM. 1Y: SE 114 NW 1/4,SEC.36,T3N.R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS Ornwr,C0�004 SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON. Ili WELL LOCATION CERTIFICATE : CARMA -36 SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 \VEST, 6TH P.M. N 88'30'57" E 2633.50' NE SEC 36 NW SEC.36 N 88'58'26" E 2642..2.9' w' 2"ALUM.CAP 3Y.,"ALUM.CAP IV 1 "-N Y4 SEC.36 LS 23500 LS 18482 1 2r ALUM CAP LS 28273 I I in n SURFACE LOCATION to I GROUND ELEVATION=4865' o e NAD83 a t I CARMA 5-36 LATITUDE=40.18581" p " LONGITUDE=104.95560° t° 3 - ^ + 7/--CARMA 3-36 r', -..----1 41 t' --: BOTTOM HOLE LOCATION o A • l NAD83 tv n .41-•�. ♦ I LATITUDE=40.18438° a O 50° \h I♦ HAMLIN STATE 6.36 LONGITUDE=104.95829° N a co z BH- 1980' FNL PDOP=2.04 660' FWL GPS OPERATOR:TRAVIS KRAICH STATE OF COLORADO E Y4 SEC.36 WY4SEC.36 BB UNIT 1 -- -- --- - - - `463Y4"ALUM.CAP 23S"ALUM.CAP et-- - I LS 29420 LS 38065 NI LaJ NOTES' in c)-0 THIS IS A DIRECTIONAL WELL o ^. BH LOCATION TO BE 1980'FNL 8 660'FWL [u BH LOCATION PROVIDED BY CLIENT. a �i N LAND SURFACE USE-DRYLAND CROP I 0 . TWINNING PROPOSED WELL CARMA 3.36 Lo -- c TO BE 15'SE rn • z PROPOSED WELL CARMA 3-36 TO BE 1478'FNL 8 1422'FWL rn m in HAMLIN STATE 6-36 IS 77'S p u.7 STATE OF COLORADO BB UNIT I IS 133'SW I U, O o SEE ATTACHED MAP FOR ADDITIONAL t0 v1 z IMPROVEMENTS WITHIN 400'. I tn S Y4 SEC.36 vt 2y2"ALUM.CAP SE SEC.36 SW SEC.36 IS 38065 23/2"ALUM.CAP 3Y4'ALUM.CAP S 88'1 3'03'' W 2637.33' ILLEGIBLE LS 18482 S 88'13'09" W 2637.41' WELL CARMA 5-36 TO BE LOCATED 1467' FNL AND 1411' FWL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND - 0 500 1000 41,=EXISTING MONUMENT +=BOTTOM HOLE BH=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR..A LICENSED PROFESSIONAL LAND SCALE 1`-1000' SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES: CERTIFY TO KERR-MCGEE OIL&GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O G.C.C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO.215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 5-36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT le,�•`n••-'CFA, REDUCTIONS USING 0 P.0 S SOLUTIONS. SURVEY PLAT AS DEFINED BY C.R S.38-51.102 AND 0.."1.04:4%. ,NAI+�C%.V,tS1 VERTICAL=NAVD88. HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. V 4� �°�� 3 THE BEARINGS SHOWN HEREON ARE BASED ON GPS T OBSERVATIONS BETWEEN THE MONUMENTS SHOWN ;� 34997 c-'; HEREON AS FOUND ON THE FIELD DATE BELOW °yi 4. DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED IN THE FIELD,WITH TIES TO WELLS MEASURED AT A ;• PERPENDICULAR TO SECTION LINES. JERRY F.HARCEK JR.,PLS 34997 �1��•T., •' COLORADO LICENSED PROFESSIONAL LAND SURVEYOR SAL LA�� FOR AND ON BEHALF OF P F S.t L C L LIN.+• MIIYII If fIILO WI: WELL NAME: ' • t, 11-18-09 CARMA 5-36 ✓:. MVO DAIS: MIME LD[AIIII: -~ NOTICE ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION BASED UPON ANY lliiLD ''~• 11.20-09 'SE COUNTY.COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVENT IIDIW.Wis. II IT: SE 1/4 NW 1/4.SEC.36,T3N,R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS Down.CO M110L SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON. Jr t .. r FORSI State of Colorado r• y.:;;'-a:r.,. __---.--.1.�_-__ Rev Oil and Gas Conservation Commission _ I'M..,nreAn street Sole 801 None Coio'uifu 002c3 Phone(3031894.2100 Fax;303)eal-210. APPLICATION FOR PERMIT TO: aR 4„,. DX Drill. I-1 Deepen, n Re-enter. D Recomplele and Operate 2. TYPE OF WELL I Retying Pk.gu,ng Bond Surety IDs OLD GAS X COALBEDn OTHER Sidetrack Et 20010124 SINGLE ZONE MULTIPLE ZONES X COMMINGLE ZONES Complete the Attachment Checklist 3. Name or operator Kerr-McGee Oil 8 Gas Onshore LP 4 COGCC Operator Number: 47120 OP coOCcl 5. Address P 0-Box 173779 APD Ong 8 1 Copy I City Denver Stale: CO Zip 80217-3779 Form 2A 6 Contact Name: Cheryl Light Phone: 720-929.8461 Fax: 720-929-7461 Wee location plat 7 Well Name CARMA Well Number: 5-36 Topo map B Unit Name Id appll. Unit Number' Mineral lease map 9. Proposed Total Measure°Depth 7954' - — Surface agrmt/Surety -- I WELL LOCATION INFORMATION 30 Day notice letter DO OtrOa:_SENW_ Sec: 36 Twit' 3 Rng: 68 Meridian: 8th.PM Deviated Drilling Plan I Latitude: N.40.18581° Longitude. W 104.95560' Exception Location ne u FrI1W. Request I Footage At Surface 1467 ® 1411 a Exception LocWaivers `11. Field Name: Wattenberg Field Number 90750 H2S Contingency Plan 112. Ground Elevation: 4855 13 County: Weld Federal DnNng Permit 14 GPS Data: Date of Measurement 11/1812009 P00P Reading 2.04 Instrument Operaar'sName: Travis Kraicn 15 9 well is: M Directional D Horizontal(highly deviated). submit deviated drilling plan. 8ottomhole Sec Twit Rng. SWNW-T3N-R68W-Sec 36 MX& FE'Fie MARL tkkbYA ;Footage Al Top of Prod Zone 1980 1 in I 660 n1 AI Bottom Hole: 1980 an 660 I FWL 16. Is locator)in a high density area(Rale 6030)? I—I Yes n No 17. Distance to the nearest budding,publ c road,above ground utility or railroad: 1048' 18. Distance to Nearest Property Line: 1400' 19 Dams to nesee ed pemuledroomgeteu n the same rernaten 815 20. LEASE,SPACING AND POOLING INFORMATION Objective Formation(s) Formation Code Spacing Order Number(s) Unit Acreage Assigned to Well Unit Configuration(N/2.SEI4,etc.) Niobrara-Code II NB-CD 407 80 W2NW-T3N-R68W-Sec 36 J Sand JSND 232 320 N2-T3N-R68W-Sec 36 21 Mineral IFlFee 1AX J �State Federal Indian Lease# 70!8536 Fee ill 13. s Surface Surf Owner also the Mineral Owner? Yes Federal Indian No Surface Surety ID# 20010125 23a If 23 is Yes Is the Surface Owners)signature on the lease? I Yes I—INo 23b 1123 is No: nSurlace Owners Agreement Attached or [$25 000 Blanket Surface Bond r]$2,000 Surface Bond [1 55 000 Surface Bond 24. Using standard Ob01r,Sec:Tap,Rng lormal enter entire mineral lease description upon which this proposed vellsite is located(attach separate sheevmap it you prefer) See Lease Attached(St of Colorado) 25. Distance to Nearest Mineral Lease Line. 660' 26 Total Acres in Lease: 320 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? Ekes Yes nNo II Yes,attach contin r.ncy plan 28. We salt sections be encountered duing Eking? rI Yes ©No 29. Will salt('15,000 ppm TDS CI)or of based muds be used during drilling? IIMI Yes Fl No 30. If questions 27 or 28 are yes.is firs location in a sensitive area(Rule 903)? -Yes No If 28,29 or 30 are"Yes"a pi permit may be required. 31 Mud disposal: X Olfslb Onstte Method: 8 Land Fearing I I Land Spreading n Disposal Facility n Other NOTE:The use of an earthen pt for Recompilation fluids requires a pit permit(Rule 905b.)It avlgas drilling,notify local lire officials. Sting Size of Hole Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Surface 12.1/4" 8-5/8" 240 B00' 560 800' Surface Production 7-7/8' 4-1/2" 11.6# i 7954' 200 7954' Liner NA 1 Stage Tod 32 BOP Equipment Type: I 'Annular Prevent,0 Double Ram n Rotating Head D None 33. Comments No conductor casing will be used 34 Location ID 336220 35 Is ties application in a Comprehensive Drilling Plan? []Yes nNo a Yes enter COPO 36 Is thus application part of a submitted Oil and Gas Location Assessment? 'Yee FIN* Signed: Print Name: CHERYL LIGHT Title- SENIOR REGULATORY ANALYST Date: Erna: Based on the information provided heroin.this Application for Permit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved Director of COGCC Date Permit Number: Expiration Date. API NUMBER CONDITIONS OF APPROVAL,IF ANY: •05- rr. r El 1 FOAM State of Colorado IT, -1 a,OM cx Oil and Gas Conservation Commission i .' 112:1 Linton Skeet sum eat Denver.Colorado 802u1 Pnone 130,1)89-21st Fax:{ le94-21a9 . APPLICATION FOR PERMIT TO: (' ' �`s 40 1 ,X Dtil. Deepen. I-1 Re-enter in Recompile and Operate 2. TYPE OF WELL I Reuling Plugging Bond Suety IDs OLD GAS X COALBED OTHER Sidetrack 20010124 SINGLE ZONE MULTIPLE ZONES COMMINGLE ZONES ` cunerue see Awdtm.m CrNcahr 3. Name of Op.rata Kerr-McGee Oil 6 Gas Onshore LP 4.COGCC Operator Number 47120 O' CCGCC 5 Address P.0 Box 173779 APD Ong 8 1 Copy City Denver State: CO Zip' 80217-3779 Form 2A __ 6. Contact Name: Cheryl Light _Phone: 720-929-6461 Fax:720-929-7461 Well location plat 7 WeN Name: CARMA Well Number: 8.36 Topo map 8 Unit Name(if apply: Unit Number: Mineral lase map - 9 Proposed Total Measured Depth: 8016' Surface agrrnt/Surety WELL LOCATION INFORMATION 30 Day notice letter 10 OtrOtr NWNE Sec: 36 Twp 3 Rng: 68 Meridian: 6th.PM Deviated Drilling Plan Latitude: N 40.15781° Longitude W.104.94854' Exception Location Mersa MAMA Request Footage At Surface' 853 FNL 1332 ® Exception Loc Wavers 11 Feld Name: Wattenberg _Feld Number 90750 H2S Contingency Plan , 12 Ground Elevation 4631 13.County Weld Federal Dnling Permit 14 GPS Data. Date ol Measurement 11/18/2009 POOP Reading. 2 Inslrument Operator's Name: Travis Kra ich 15 If ma,s El Directional El Horizontal(highly deviated), submit deviated drilling plan, Botbmhole Sec Twp Reg SENE-T3N-R68W-Sec 36 r.ura& KU1N rwsaL FELexa Footage At Top or Prod Zone 1980 ® 660 ®Al Bolton Hob: 1980 FN 660 I FEL • 16 Is location in a high density area(Rule 603b)? O Yes O No 17 Distance to the nearest building,public road.above ground utility or railroad 853' 18. Distance to Nearest Property Line: 472' 19.DiNsnoe to nearest**pwmxsdMpmpiat.e jn no same rermyor 1104' Z0. LEASE,SPACING AND POOLING INFORMATION Obtecuve Formation(s) Formation Cone Spacing Order Number(s,) Unit Acreage Assigned to Well Unit Configuration(N/2,SE/4,etc I Niobrara-Codell NB-CD 407 80 EZNE J Sand JSND 160 N2 1 •21. Surface Ownership. nFee RStale�Federal Indian Lease A 22. Suriace Ownership Fee State Federal Indian 23 Is the Surface Owner also the Mineral Owner? Yes I x No Surface Surety ID# 23a II 23 is Yes Is the Surface Needs)signature on the teasel I Yes nNo 236 If 23 is No QSurface Owners Agreement Attached or L'S25,000 Blanket Surface Bond n92.000 Surface Bond FIS5 000 Surface Bond 24 Usng standard O,r0b.Sec.Twp.Rng format enter entire mineral lease descnipton upon wyich this proposed wellslte is'scaled(attach separate sheet/map if you prefer) SEE LEASE ATTACHED(Bailey) 25. Distance to Nearest Mineral Lease Line' 660 26. Total Acres in Lease. 160 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? ri Yes M No II Yes,attach conbngency plan. 28. Will salt sections be encountered duing drilling? n Yes X No 29. Wilma(a15,000 ppm TDS CI)or al based muds be used during drilling? Yes I_I No ,30. II questions 27 or 28 are yes is mis location in a sensitive area(Ruh 903)? Yes No If 28,29 or 30 are'Yee a pit permit miry be required 31. Mud disposal. X Otsite Onsite Method R Land Farming IZI Lard Spreading Disposal Facility El Otter: NOTE. The use ol an earthen pit for RecornpleCan Buds r les a pit permit(Rule 905b)II air/gas drilling.nobly local fire officials. Sling Size of Hole Size ol Casing WeigM Per Foot i Setting Depth r Sacks Cement Cement Bottom Cement Top Surface 12.1/4' 8-518" 244 600 _ 560 600' Surface Production 7-7/8" 4-1/2" 11.64 8016' 200 8016' Liner NA IStaaaye Tool . 32. BOP Equipment Type: QX Annular Preventor Il Double Ran I—I Rotating Head n None 33. Comments No conductor casing will be used 34. LocauonID 336328 35. Is this application in a Comprehensive Drilling Plan? Ayes r-IN. Ir y.s enter CDPt 36. Is this application part of a submitted Oil and Gas Location Asseaarnent? Elyse nNo Signed Pnnt Name CHERYL LIGHT Title. SENIOR REGULATORY ANALYST Date: Email: 1 Based on the information provided herein,this Application for Permit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved COGCC Approved Director of COGCC Date. Permit Number: Expiration Date API NUMBER CONDITIONS OF APPROVAL,IF ANY: 0• 05- WELL LOCATION CERTIFICATE : CARMA 8-36 • SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. NW SEC.36 N H8'58'26" C 2642.29' N 88'30'57" E 2633.50' NE SEC.36 w-2"ALUM.CAP 34"ALUM CAPS N Y I SEC.36 !° LS 23500 LS 18487 2Y2'ALUM.CAP LS 28273 SURFACE LOCATION cn GROUND ELEVATION=4831' ' CARMA 8-36 I O to a NAD83 1332' o n LATITUDE=40.18761° N LONGITUDE=104 94654° o r ' -- to R&M STATE 2 36 "'�. BOTTOM HOLE LOCATION - — rJ — -- - - m J NAD83 R&M STATE 1-36 o° o`?• oo LATITUDE=40.18455° I c„ Tv in LONGITUDE= 104 94414' .n o PDOP=2.04 o GPS OPERATOR:TRAVIS KRAICIi BH- 1980' FNL co. L I 660' FEL EY<SEC36 L W)a SEC.36 _ �_ - - -- 34"ALUM.CAP 2)S"ALUM.CAP e--- - - - - - -- I - - LS 29420 LS 38065 in kJ NOTES' of 0-0 THIS IS A DIRECTIONAL WELL o BH LOCATION TO BE 1980'FNL&660'FEL q LI W i BH LOCATION PROVIDED BY CLIENT. I A Ln I° LAND SURFACE USE-DRYLAND CROP I ci N TWINNING EXISTING WELL R&M STATE 2-36CD C9 WHICH IS 48'SW r., • Z, EXISTING WELL R&M STATE 2-36 IS 0 888'FNL&1365'FEL N coH)in R&M STATE 1-36 IS 89'SE v 4.o SEE ATTACHED MAP FOR ADDITIONAL I o iii o p IMPROVEMENTS WITHIN 400'. w Ln Z In S%i SEC.36 2)12"ALUM.CAP SE SEC. 36 SW SEC. 36 LS 38065 3Y,"ALUM CAP S 88'13'03" W 2637 L°ALUM.CAP LS 18482 S 88'13'09" w 2637.41' .33' ILLEGIBLE WELL CARMA 8-36 TO BE LOCATED 853' FNL AND 1332' FEL, SECTION 36, T3N, R68W OF THE fith P.M LEGEND _-., 0 5 0 0 1000 >r 0=ExIS11NG MONUMENT 4 =BOTTOM HOLE BH=BOTTOM HOLE el =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE:1`=100 lill SURVEYOR IN THE STATF OF COLORADO DO HEREBY NOTES CERTIFY TO KERR-MCGEE OIL&GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE COG C.C.RULE SHOWN HEREON WERE DONE BY ME OR UNULR MY DIRECT NO 215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2. ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 6-36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT O yr+F,�" REDUCTIONS USING O P.U S SOLUTIONS. 'Y SURVEY PLATAS DEFINED BY C.R.S.38•St-102 AND VERTICAL=NAVD08. HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. rO,•�,W°►RC�;•SF 3. THE BEARINGS SHOWN HEREON ARE BASED ON GPS �t - `d OBSERVATIONS BETWEEN THE MONUMENTS SHOWN 34997 HEREON AS FOUND ON THE FIELD DATE BELOW. S 4 DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED IN THE FIELD,WITH TIES TO WELLS MEASURED AT A PERPENDICULAR TO SECTION LINES. JERRY F.HARCEK JR.,PLS 34997 ?:A..•..1.1),„, ° COLORADO LICENSED PROFESSIONAL LAND SURVEYOR ' S,j;''••••••• FOR AND ON BEHALF OF P.F S.,LLC ••, °NAL l,Ar- _ .. FIELD DAI1, WILL MAZE: •+nrT� ,, 11-1809 CARMA 8-36 P.,8 OMAYI M6 WI: SOMIMI LOLAI IOM: NOTICE ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION PASFO UPON ANY 11_07 .'• WELD COUNTY,COLORADO 11.20-09 DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT.IN NO EVENT UMW. IY: NW 1/4 NE 1/4,SEC 36,T3N,REM MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS • � SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON. :et r• 0, en FORM State of Colorado RNee Oii and Gas Conservation Commission _ .,v __ i 1125_um,nSeeat i.,iv5)i Gene•CoarauolU.,i3Fro-e .C3:55e-2iOo'aixlX1ta54.2'55 �t APPLICATION t� FOR PERMIT TO: t"\2 57 1. OX ^ l Dull, l ,Deepen El Re-enter El Recomplele and Operate ii, 2 TYPE OF WELL Raffling Plugging bond Surely lOe O:L❑GASX COALBEOD OTHER: Sidetrack 20010124 SINGLE ZONE MULTIPLE ZONES X COMMINGLE ZONES I Complete the Attachment Checklist 3 Name of O slur Kerr-McGee Oil 6 Gas Onshore LP 4.COGCC Operates Number 47120 CCGCC - 5 Address: P.0.Box 173779 APD Ong&1 Copy 04: Denver Slate: CO Zip: 80217-3779 Form 2A 6. Contact Name: Cheryl Light Phone: 720-929.6461 Fax: 720-929-7461 Well location plat 7. Well Name. CARMA Well Number. 12-36 Tapp map S. Unit Name Id app)_-. Unit Number: Mineral lease map 9 Proposed Total Measured Depth. 8320' Surface agrmt/Surely WELL LOCATION INFORMATION 30 Day notice letter 10 OhOir SEN_W Sec 36 Twp 3 Reg: 68 Meridian: 6 lh PM Deviated Drilling Plan Latitude. N.40.18572• Longitude W.104.95549• Exception Location rrtkML Request Footage At Surface: 1499 FNL 1443 El Exception Lac Waivers .11 Field Name. Wattenber Field Number 90750 H2S Contingency Plan 112 Ground Elevation. 41364 13.County Weld Federal Drilling Permit 14 GPS Data Dale of Measurement: 11/18/2009 PROP Reading: 2 instrument Operator's Name- TravisKraieh • 15. N wel a• ED Deeclional El Horizontal(highly deviated). submit deviated drilling plan Bollanhole Sec Twp Ring. NWSW-T3N-R68W-Sec 36 NUM Run% Mat starlet Footage Al Top of Prod Zone 1980 FSL 660 ©At Bottom Hole: 1980 1 frS-Q 680 f FWL 16 Is location at a high density area(Rule 603b)? n Yes n No 17 Distance to the nearest building:public road.above ground utdty or railroad 1081' 18. Distance to Nearest Property Line: 1433' 19.bs;arce to nearest well frermilledkompleltA r the sane lamaloe 844' 20 LEASE,SPACING AND POOLING INFORMATION r Objective Formation(s) Formation Code Spacing Order Number(5) Unit Acreage Assigned to Well Unit Configuration(N/2,SE/4,etc.) I Niobrara-Codell _ NB•CD 407 BO N2 SW — J Sand , JSND 160 S2 1✓ _. l 21 Mineral Oswlershp. Rx Fee State Federal _Indian Lease• fill22. Surface Oaeersh p: Fee State Federal Indian 23. is the Surface Owner also the Mineral Owner? L._Yes ( x No Surface Surety IDS 20010125 23a II 23 is Yes: b the Surface Owner(s)signature on the lease? 1 Yes oNo 23b(123 is No: nSudace Owners Agreement Attached or L X 925,000 Blanket Surface Bond 052.000 Surface Bond 11 95,000 Surface Bond 24. Using standard ObOt.Sec.Tap.Rog lormat enter entire mineral lease description upon which this proposed weasite is located(attach separate sheeVrnap ityou prefer) SEE LEASE ATTACHED(Guertner) _ 25. Distance to Nearest Mineral Lease Line: 585' 26. Total Acres In Lease: 240 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated n Yes n No lI Yes.attach urn' plan. 28 Will salt sectors be encountered cluing drilling') n Yes X No_ 29 Will salt(>15,000 ppm TOS Cl)or oil based muds be used during diming? Yes X No 30 II questions 27 or 28 are yes.S514 location n a sensitive area(Rule 903)7 Yes X No N 28,29 or 30 are"Yes-a pit permit may be required. 31 Mud disposal: X Ofhlte p Ongte Method: 'I�"�"11 Land Farming n Land Spreading n Disposal Facility n Other NOTE.The use of an earthen pit to Recornpletan fluids Wes a pit paint(Rule 905b.)If aergas drilling,notify local fire officials. Sling Size of Hoe See of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Surface 12-1/4" r 8-5/8` 24# 800' 580 800' Surface Production 7-718" 4-1/2" 11.6# 8320' 200 8320' Liner NA !Stage Tool _ l 32. BOP Equipment Type: El Annular Preventor n Double Ram O Rotating Head n None 33. Comments No conductor casing will be used 34 Location ICr 336220 35. Is this application in a Comprehensive Drilling Plan, []Yes r--1 NoJr Yes enter CDPe 36 is this application part of a Submitted Oil and Gas Location Assessment, rives nNo Signed. Print Name: CHERYL LIGHT Title: SENIOR REGULATORY ANALYST Date: Email 1 Based on the rnformalion provided herein,this Application for Permit-to-Drill oomph's with COGCC Rules and applicable orders and is hereby approved COGCC Approved: Director of COGCC Date Permit Number: Expiration Date: — API NUMBER CONDITIONS OF APPROVAL,IF ANY. 0 05- ii WELL LOCATION CERTIFICATE : CARMA 1. 2, 36 .36 SEC-I-IQN 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. 1.11 NW SEC 30 N 88'58'26" E 2642.29' N88'30'57" E 2633.50' NE SEC.3;, 2"ALUM.CAP 3Y, 1V"ALUM CAP N Ye SEC.36 LS 23500 I_S 18482 2YZ"ALUM CAP LS 28273 ! 0 �. SURFACE LOCATION 0 a I t I GROUND ELEVATION=4864' o n NAD83 A N LATITUDE=40.18572' o CARMA 12-3 LONGITUDE=104 95549° to CARMf11 2I 8 rn 0 1443 BOTTOM HOLE LOCATION I NAD83 Iu In STATE OF COLORADO II LATITUDE=40.18059° o b BB UNIT l I AMLIN STATE 5-36 LONGITUDE=104.95830° O iv o w z 3 PDOP=2.04 A GPS OPERATOR:TRAVIS KRAICH .N orya E Y4 SEC.36 W Y4 SEC.36 4, ^ I ,-- -_ _. _-__ .-- - •_--- 3Y4"ALUM CAP 2Y2"ALUM.CAP --- -- - (4 I LS 29420 LS 38065 "-1 NOTES ti THIS IS A DIRECTIONAL WELL 0 Z"0 BH LOCATION TO BE 1980'FSL&660'FWL Q V BH- 1980' FSI_ BH LOCATION PROVIDED BY CLIENT q W `O 660' FWL I LAND SURFACE USE-DRYLAND CROP A0 N I TWINNING PROPOSED WELL CARMA 21-36 co ins TO BE 15'SE Z I PROPOSED WELL CARMA 21-36 TO BE IT ID ODDOD Ln 1509'FNL&1454'FWL .(„, Li. HAMLIN STATE 6-36 IS 50'SW rn STATE OF COLORADO BB UNIT 1 IS 120'SW o j b SEE ATTACHED MAP FOR ADDITIONAL is' t_,Z I IMPROVEMENTS WITHIN 400'. i° In SY4 SEC.36 1 2Y2"ALUM.CAP SE SEC.36 SW SEC. 36 LS 38065 q}2Y2"ALUM.CAP 3Y4"ALUM.CAP ak LS 18482 S 88'13'O9" W 2637.41' S 88'13'03" W 2637.33' ILLEGIBLE WELL CARMA 12-36 TO BE LOCATED 1499' FNL AND 1443'FWL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND 0 500 1000 M •=EXISTING MONUMENT AI-=BOTTOM HOLE RH=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I.JERRY F.HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE:V=1000' I] SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES' CERTIFY TO KERR-MCGEE OIL S GAS ONSHORE LP, 1. THIS SURVEY WAS UONI:BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO TIIE MINIMUM STANDARDS SET BY THE C.O.G.C.C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO.215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 12.36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT W..'t:1O..+'CF REDUCTIONS USING O P U.S SOLUTIONS. SURVEY PLAT AS DEFINED BY C.R.S.35.51.102 AND ()'•' M VERTICAL=NAVD88; HORIZONTAL=NADB3192 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. OV 4N'11ARL' ..v' 3 THE BEARINGS SHOWN HEREON ARE BASED ON GPS OBSERVATIONS BETWEEN THE MONUMENTS SHOWN Vf HEREON AS FOUND ON THE FIELD DATE BELOW 115" 34997 4. DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED 1Z', IN THE FIELD,WITH TIES TO WELLS MEASURED AT A , PERPENDICULAR TO SECTION LINES JERRY F HARCEK JR.,PLS 3499/ � COLORADO LICENSED PROFESSIONAL LAND SURVEYOR • /• " 5 FOR AND ON BEHALF OF P F.S..LLC '•• AL LA�p r� • FIELD DATE. YQI N[, '! 11-1 ••.•nrff rf 1-1tl-O9-OB CARMA 1i-.113- - -� INAYIN6 OAT[ SUIFA[I L0CATI0N:al NOTICE ACCORDING 1O COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION BASED UPON ANY IL 1P7. � 11-20-09_._. _WFLD COUNTY,COLORADO DEFECT IN I HIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVEN I 1p1M.NTIAw. IT: SE 1/4 NW 1/4.SEC 36,T3N,R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS Dow,cocoa SMF FROM THIS SAID GATE OF THIS CERTIFICATION SHOWN HEREON FORM 1 State of Colorado 2 I f rt.voems Iigir Oil and Gas Conservation Commission 1? =/ 1120 Leo*shot.Sucre 901,Ocmar.Cal r.us t 4 Phone'(703)894.2i oc Fax(3031s34-2103 L, APPLICATION FOR PERMIT TO: 1 EX Ore, ED Deepen. n Re-enter, n Recomple!e and Operate • 2. TYPE OF WELL ^^^1ff RnWerg Plugging Bond Surety ea OIL❑GAS'X I COALBED� OTHER I Sidetrack 20010124 . SINGLE ZONE MULTIPLE ZONES X COMMINGLE ZONES) compiles Anaciiner4 Cheeklig 3. Name of Openior Kerr•MCGee Oil&Gas Onshore LP 4.COGCC Operator Number: 47120 DP COGCC 5 Address: P.O.Box 173779 APD Org 8 1 Copy City Denver Slate CO Zip: 80217-3779 Form 2A 6 Contact Name: Cheryl Light T_Plane: 720-929-6461 Fax: 720-929-7461 Wet location pat 7. Wet Name. CARMA Well Number: 21-36 Topo map 8. Unit Name(if apply Unit Number: Mineral lease map 9 Proposed Total Measured Depth. 6057' Surface agrmtlSuey WELL LOCATION INFORMATION 30 Day notice letter 10. OtrOtr SENW Sec 36 Twp 3 Rng 68 Meridian. 6th.PM Deviated Drilling Plan Latitude N.40.18570° Longitude W.104.95545' Exception Location _ rr[rst rflnw Request Footage Al Surface. I 1509 j m L_ 1454 ® Exception Loc Waivers 11 Feld Name: Wattenberg Field Number 90750 H2S Contingency Plan 12 Ground Elevation 4863 13 County Weld Federal Drilling Parent n4 WS Data ( Date fa Measurement 11/18/2009 PDOP Rearing 2 lnsvumenl O0eralor's Name' Travis Kraich 15 If well is El Directional ❑Horizontal(highly deviated). submit deviated drilling plan. Boltarnhole Sec 7wp Rng: SWNE-T3N•R68W-Sec 36 truFSl liurwL rruao MAW Footage At Top of Prod Zone' I 1330 I ® 2560 ®Al Bottom Hole: 1330 I---L 1 2580 1 1,FEL 16. is location in a nigh density area(Rule 603b)2 Q Yes n No 17 Distance to the nearest building,public road.above ground utility or railroad: 1092' II. Distance 10 Nearest Properly Lee 1444' 19.Us!ance to nearest well permmeaicampleled m Bo sane lomieeon 927' 20. LEASE,SPACING AND POOLING INFORMATION Objective Famation(s) Formation Code Spacing Order Number{s) Unit Acreage Assigned to Well Unit Configuration(Nr2.SE/4.etc) Niobrara-Codell NB-CD 407 180 W2NE,E2NW J Sand JSND 160 W2NE,E2NW 21 Mneralownerah0 X Fee RSV* Federal Indian Leasex ip22. Surface Ownership Fee Stale Federal -\Indian 23. Is the Surface Outer also the Mineral Owner? j_Yes ( X No Surface Surety iDs 20010125 23a 1123 is Yes: Is the Surface Owner(s)signature on the lease? I Yes XONo 23b d 23 is No: IlSurface Omen Agreement Attached or X 525,000 Blanket Surface Band nS2.000 Surface Bond n55.000 Surface Bond 24 Using standard OtrOtr,Sec'wp,Rag lormat enter entire mineral lease descnplee upon which this proposed wellstte is located(attach separate sheeurnap r you prefer): SEE LEASE ATTACHED(Bailey) 25. Distance to Nearest Mineral Lease Line- 5' 26. Total Acres in Lease: 160 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? n Yes n No It Yes,attach con�tragency plan. 28. Wil salt sections be encountered doing drilling? a Yes 1 X No 29. Will sail(>15 000 ppm IDS CI)or al based muds be used during dnlhngi Yes l l No 30. I Yes No If 28,29 or 30 are questions 27 or 28 are yes,is this location in a sensitive area(Rule 903)? Yes"a pit permit may be required. 31 Mud disposal X Oftsite n Onsite Method Land Farming EX Land Spreading n Disposal Facilely In Other NOTE The use of an earthen pit for Recompletion fluids recuees apit permit(Rule 905b.)It airlgas drilling.notify local fire officials Strxng Size of Hole Size of Casing Weight Per Fool Setting Depth _ Sacks Cement Cement Bottom Cement Top Surface 12-1/4" 8-5/8" __ 24* 800' 560 800' Surface Production 7-718" 4-1t2- 11.68 8057' 200 8057' Liner NA Stage Tool 32. BOP Equipment Type EX Annular Prevento 0 Double Ram O Rotating Head O None 33. Comments No conductor casing will be used 34 Location ID 336220 35. Is this application in a Comprehensive Drilling Plan" eYes nNo if vas amn COPS 36 Is this application part of a submitted Oil and Gas Location Assessment? El YesnNo Signed Print Name: CHERYL LIGHT Title SENIOR REGULATORY ANALYST Date: Email Based on the information provided herein.this Application for Permit-to-Drill complies with CO0CC Rules and applicable orders end is hereby approved. COGCC Approved Director of COGCC Date Permit Number Expiration Date: API NUMBER CONDITIONS OF APPROVAL,IF ANY: • WELL LOCATION CERTIFICATE ° CARMA 21, .36-1 SECTION 36, TOWNSHIP 3 NORTH. RANGE 68 VVEST, 6TH P,M. NW SEC.36 N 88'58'26" E 2642.29' N 88'30'57" E 2633.50' NE SEC.36 2"ALUM.CAP 3Y4"ALUM.CAP b I N Y4 SEC.36 LS 23500 LS 18482 2Yz"ALUM CAP LS 28273 I SURFACE LOCATION N v §§ I GROUND ELEVATION=4863' o NAD83 — N I BH- 1330' FNL LATITUDE=40.18570° d CARMA 21-3 2580' FEL LONGITUDE=104 95545° _ E.— m Nf� BOTTOM HOLE LOCATION O --.---------.1454'----41---- 1256 I NAD83 IV LATITUDE=40.18623° cn M OI AML.IN STATE.6-136 LONGITUDE=104.95101° Q o STATE OF COLORADO m o 7 BB UNIT 1 PDOP=2.04 I GPS OPERATOR:TRAVIS KRAICH EY4SEC 36 W Y4 SEC.36 I _ ._ _ ---- - - --,3Y4"AS CAP 2Yz"ALUM.CAP - - - - - --_._ LS 29420 LS 38065 NOTES: ul O O THIS IS A DIRECTIONAL WELL. o Z N BH LOCATION TO BE 1330'FNL&2580'FEI. q Lki Li n BH LOCATION PROVIDED BY CLIENT. I 1+ u1 N LAND SURFACE USE DRYLAND CROP I c5 TWINNING EXISTING WELL HAMLIN STATE 6.36 - Lel 3 48'SW m EXISTING WELL HAMLIN STATE 6-36 IS • Q� 1543'FNL 81420'FWL too)cti Ln STATE OF COLORADO B8 UNIT 1 IS 119'SW• o 4. SEE ATTACHED MAP FOR ADDITIONAL I u, O o IMPROVEMENTS WITHIN 400'. i° Inz I SY4 SEC.36 11 2Y,"ALUM.CAP SE SEC.36 SW SEC.36 LS 38065 •2y,"ALUM.CAP 34"ALUM.CAP jik5 88.13'03" W 2637.33' ILLEGIBLE LS 18482 S 88'13'09" W 2637.41' WELL CARMA 21-36 TO BE LOCATED 1509'FNL AND 1454' FWL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND 0 500 1000 ..EXISTING MONUMENT 4- =8O11OM HOLE BH=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE:1`=1000' SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES' CERTIFY TO KERR-MCGEE OIL&GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O.G.C.C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO 215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 21-36.THIS CERTIFICATE DOES NOT •,4'..�••••�. DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT ,4`� OTU DO REDUCTIONS USING O P U.S.SOLUTIONS. ••°° °°'•• SURVEY PLAT AS DEFINED BY C.R.S 38-51-102 AND �� O•••• �};��q�.•% VERTICAL=NAVD88. HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. C 144.0 3. THE BEARINGS SHOWN HEREON ARE BASED ON GPS : ) C3%*k OBSERVATIONS BETWEEN THE MONUMENTS SHOWN iW i 1T1 HEREON AS FOUND ON THE FIELD DATE BELOW. • i`7 9497 ?S= p 4 DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED 3 C.: IN THE FIELD,WITH TIES TO WELLS MEASURED AT A _ - .-bt PERPENDICULAR TO SECTION LINES. JERRY F.HARCEK JR.,PLS 34997 ti• COLORADO LICENSED PROFESSIONAL LAND SURVEYOR ' FOR AND ON BEHALF OF P.F.S.,LLC • Arvo S IT: IMO 0 M .. 11-18-09 CARMA 21.36 • !.� DAAYIY6 DATI SYIFAR SD[AIIIi. NOTICE.ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL.ACTION BASED UPON ANY ' �• 11-20-09 WELD COUNTY,COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVENT IIIN AT, SE 114 NW 1/4,SEC.36,T3N,R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS . a Tti COUI SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON ~FORM 1 State of Colorado r• r --� Y fn%.nn Re.Wee I• Oil and Gas Conservation Commission i' Da '- J 1,2u Lincoln 3ueet.Susie 501 Doom.Colorado 80OJ3 Phons[3031994-7100,a.(301)894.2'.09 APPLICATION FOR PERMIT TO: t_�® 1. ©Drill. D Deepen. I-1 Re-enter, O Recomplete and Operate ill2 TYPE OF WELL Rafting Pwggrng Bond Surety IDS OILD GAS(X I COALBED� OTHER. Sidetrack R 2OO1O124 SINGLE ZONE MULTIPLE ZONES X COMMINGLEZONESI Compet.a. — Auscnment Checklist 3. Name or operator Ken-McGee Od 8 Gas Onshore LP _ 4 COGCC Operator Number: 47120 OP coocc 5. Address P.O.Box 173779 APD Ong 8 1 Copy City Denver Stale: CO Zip 80217-3779 Form 2A 6. Contact Name: Cheryl Light Phone: 720-929-6461 Fax' 720.929-7461 Weil location plat 7. Wet Name: CARMA Well Number 22-36 Topo map 8 Unit Name(it apps) Unit Number Mineral lease map 9 Proposed Total Measured Depth: 8066' Surface egrmVSurely WELL LOCATION INFORMATION 30 Day notice later 10 0005 SENW Sec 36 Tyre 3 Rng: 88 Meriden: 6th.PM Deviated Drilling Plan Latitude. N.40.16567` Longitude: W.104.95541" Exception Location vn,eL entewM Request Footage At Surface 1520 FNL 1485 [ E.,pe ton Ldc Waivers �_r 11. Field Name. Watlenberg Feb Number: 90750 H2S Contingency Plan 12. Ground Elevation 4863 13 County. Weld Federal Driing Permit 14 GPS Data. Date of Measurement 11/18/2009 POOP Reading 2 Instument Operator's Name: Travis Kraich • 15. It well is: El Directional ❑Horizontal(highly deviated), submit deviated drilling plan. Botbmhole Sec Twp Rng NWSW-T3N-R68W-Sec 36 NUM rEUrwt fte031. MAYA Footage At Top of Prod Zone: L 2625 I ® 1320 EllAt Bolan Hole 1 2625 ® 1320 1 1 FWL- 16. Is location in a high density area(Rule 603b)? rl Yes n No 17. Distance to the nearest budding,pubic road,above ground utity or railroad 1103' 18. Distance to Nearest Properly Line: 1455' -_•_ 19.Distance to newest well penntlaclioornileied it the same ro'roam 986' 20. LEASE,SPACING AND POOLING INFORMATION Objective Formation(s) Formation Code Spacing Order Number(s) Unit Acreage Assigned to Well Un+.Configuration(N12,SE/4.etc.) Niobrara-Codell NB-CD 407 160 S2NW,N2SW J Sand JSND _ 16O S2NW,N2SW ill21. Mineral Oeerershp: 8X Fee State ^�Federal ~'Indian Lease* 22. Surface X Fee State __ Federal �lndian 23 Is the Surface Owner also the Mineral Owner? LYes X No Surface Surely ID* 20010125 23a If 23 is Yes: is the Surface Owner(s)signature on the leaser 1 Yes nNo 23b I123 is No: nSurface Owners Agreement Attached or L.(_,S25.000 Blanket Surface Bond 082.000 Surface Bond E355.000 Surface Bond 24. Using standard OtrQt.Sec,Twp.Rng format enter entire mineral lease oescriphon upon which this proposed white is located(attach separate sheetmap it you prefer) SEE LEASE ATTACHED(Bailey) 25. Distance to Nearest Mineral Lease Ise: 15' 26. Total Acres in Lease: 160 DRILLING PLANS ANO PROCEDURES 27. Is H2S anticipated, ! 1 Yes X No B Yes,attach conlin plan. 28. Will salt sections be encountered duing'drr'trig? n Yes X No 29. Wit salt(>15,000 ppm TOM Cl)or oil awed muds be used during dnl!ing? Yes X No 30 If questions 27 or 28 are yes.is this location in a sensitive area(Rule 903)? Yes No If 28,29 a 30 are"Yes"a pit pamK may be required. 31. Mud dispose: X Otsne O Onsite ^ Method: Land Fanning 0X Land Spreading n Disposal FacilityI J Other: NOTE:The used an earthen pit for Recomplehon fluids requires a pit permit(Rule 905b.)If aulgas ailing,notify local foe officials String Size of Hole Size of Casing Weight Per Foot Semng Depth Sacks Cement Cement Bottom Cement Top Surface 12-1/4" 8-5/8" 24* 800' 560 800' _ Surface Production 7-718" 4-112" 11.64 8066' 200 8066' Liner NA f _- ,Stage Tool 32. 80P Equipment Type: [ Annular Preventor Fl Double Ram O Rotating Head n None 33. Comments No conductor casing will be used J4 Location tO: 336220 35. Is this application in a Comprehensive Drilling Plan', Ores nNo It Yes enter CDPa 36 Is this application part d a submitted Our and Gas Location Assessment" DX Yes nNo Signed: Print Name. CHERYL LIGHT Title. SENIOR REGULATORY ANALYST Date. Email _ i Based on the information provided herein.this Application for Permit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved COGCC Approved: Director of COGCC Dale Permit Number Expiration Date: API NUMBER CONDITIONS OF APPROVAL,IF ANY: 4005- 1 ........_ _ 4 WELL LOCATION CERTIFICATE : CARMA 22-36 SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. D NW SEC.36fin N 88'5/3 26" E 2642.29' N 88'30'57" I 2633.50' NE SEC.3D 3Y4"ALUM CAP N Y4 SEC.30 2"ALUM.CAP LS 23500 LS 18482 2Y,"ALUM CAP LS 28273 I w SURFACE LOCATION (0 I N I GROUND ELEVATION=4863' q a O NAD83 to LATITUDE=40 18567° o N CARMA 21-36 I CARMA 22 36 LONGITUDE=104.95541° cn — • /� m BOTTOM HOLE LOCATION M +----1465' I NAD83 cn ;n I LATITUDE=40 18241° in o b HAMLIN STATE 6-36 LONGITUDE=104.95594° N GD STATE OF COLORAD 'n io POOP=2.04 Z 89 UNIT 1 I lb o� GPS OPERATOR:TRAVIS KRAICH v, E Y4 SEC.36 W Y4 SEC.36 I _- -- - -- --- - - -0-34"ALUM CAP 2YZ'ALUM.CAP(1)--- - --- -- - LS 29420 LS 38065 BH-2625' FSL '-) 1320' FWL I W 0 '.. NOTES: o N THIS IS A DIRECTIONAL WELL q I - BH LOCATION TO BE 2625'FSL&1320'FWL I A Li r- BH LOCATION PROVIDED BY CLIENT. 6 N LAND SURFACE USE-DRYLAND CROP I 0 i TWINNING PROPOSED WELL CARMA 21-36 Z> m TOBE15'NW • 0.p PROPOSED WELL CARMA 21-36 TO BE n1 W''1 i 1509'FNL&1454'FWL N HAMLIN STATE 6.36 IS hU'SW o 4-b STATE OF COLORADO BB UNIT 1 1S 120'SW Ilb SEE ATTACHED MAP FOR ADDITIONAL I in-Z IMPROVEMENTS WITHIN 400' s Y4 SEC.36 2.Y"ALUM.CAP SE SEC 36 SW SEC. 36 LS 38065 2Y2'ALUM.CAP 3Y4"ALUM.CAP S 88'13'03" W 2637.33' ILLEGIBLE LS 18482 S 68'13'09" W 2637.41' WELL CARMA 22-36 TO BE LOCATED 1520' FNL AND 1465' FWL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND 0 5 0 0 1000 Ad =EXISTING MONUMENT ♦=BOTTOM HOLE 8H=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I I,JERRY F HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE:1�=1000' III SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES CERTIFY TO KERR-MCGEE OIL S GAS ONSHORE LP 1 THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O.G.C C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO.215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2. ELEVATIONS SHOWN AT THE WEI.L HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL.,ARE BASED ON GPS-RTK VALUES WELL CARMA 22-36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT �� REDUCTIONS USING 0 P.0 S SOLUTIONS. SURVEY PLAT AS DEFINED BY C.R.S.38.51-102 AND •'O Lie VERTICAL=NAVD88; HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. O°.•' MO 'V 3. THE BEARINGS SHOWN HEREON ARE BASED ON GPS 07' Q• C�4� OBSERVATIONS BETWEEN THE MONUMENTS SHOWN V '�LQ HEREON AS FOUND ON THE FIELD DATE BELOW. i A997 N"= 4. DISTANCES SHOWN ARE AT GROUND LEVEL.AS MEASURED �v IN THE FIELD,WITH TIES TO WELLS MEASURED ATA _ to .� �' PERPENDICULAR TO SECTION LINES JERRY F HARCEK JR,PLS 34997 % COLORADO LICENSED PROFESSIONAL LAND SURVEYOR °••. FOR AND ON BEHAI F OF P F S.LIC r1IHuo n• I!ILO DATE Wit NAME: ,; 11.18-09 CARMA 22-36 ►.5 DAMNS DAZE: SUPAIE LOCATION: NOTICE ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LLICILL ACTION FIASCO UPON ANY Mil-17 l'1:-i'• 11-20-09 WELD COUNTY,COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVENT ummVDvein01 SE 114 NW 114.SEC.36,T3N,R68W'MAY ANY ACI ION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE 1-IAN TEN YEARS OM i Oenv.ODl�I SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON t, ,r A it FORM State of Colorado 2 Rev Web Oil and Gas Conservation Commission .�; 1125 Urea Steele.Sude Bei Ginter Coloradc 8:203 Phu.r F1)3:894-2,10%,,A(303)0t4-7109 ".- n, APPLICATION FOR PERMIT TO: tZ _:,j,, 1. ❑X NI, 11 Deepen. n Re-enter, l=Recomplete and Operate • 2 TYPE OF WELLLL 1 n Refiling Plugging Bond Su eiy IDS OIL GASI X I COALBED OTHER. i Sioelrack 20010124 . SIN LE ZONE MULTIPLE ZONES X COMMINGLE ZONES eomprore me Anseimenl CMcpal 3. Name of operator Kerr-McGee Oil S Gas Onshore LP 4.COGCC Operator Number: 47120 OP COGCC 5 Address: P 0.Box 173779 APD Ong&1 Copy City: Denver State CO Zip' 80217-3779 Form 2A 6. Contact Name. Cheryl Light Phone: 720-929-6461 Fax: 720-929-7461 Wet location plat 7 Well Name: CARMA Wall Number. 28-36 Topo map 8. Unit Name(it app) Unit Number: Mineral lease map 9. Proposed Total Measured Depth: 8115' Surface agm llSurety WELL LOCATION INFORMATION 30 Day notice letter - 10. OKA, NWNE Sec: 36 Twp:_ 3 _Rug _ 68 Meridian: 61h.PM Deviated DnlIm Plan Latitude. N.40.18766' Longitude W.104 94662° Exception Location FANS!. FEUFW, Request Footage At Surface: 831 ® I 1356 1 I FEL Exception Loc Waivers -- 11 Field Name. Wattenberg Feld Number: 90750 H2S Contingency Plan 12 Ground Elevation 4831 13 County: Weld Federal Drilling Permit in GPS Data: Date of Measurement 11/18/2009, POOP Reading 2 Instrument Operabes Name: Travis Kraich 15. II wells: ❑X Directional El Horizontal(highly deviated). submit deviated drilling plan. Bodonnole Sec Twp Rag. NENW-T3N-R68W-Sec 36 Felten FfJFwl PeFA RKMs Footage At Top of Prod Zone: 50 In 2590 ®At Bottom Hole: 50 I On 2590 I FWL 16 Is location in a high density area(Rule 603b)? I I Yes n No 17. Distance to the nearest Puking,public road,above round utility o railroad. 831' 18. Distance to Nearest Property Line: 494' 19.Dalanoe to nearest wet pe ntledbomple:ed n the same boeatos 667 20. LEASE,SPACING AND POOLING INFORMATION , Objective Formation(s) I Formation Code __ Spacing Order Nixnber(s) Unit Acreage Assigned lo Well Und Configuration(N12,SE/4,eg1 , Niobrara-Codell NB-CD 407 160 SESW,SWSE-T3N-R68W-Sec.25 NWNE,NENW-T3N-R68W-Sec.36 .1 Sand JSND 160 SESW,SWSE-T3N-R68W-Sec 25 I NWNE,NENW-T3N-R6BW-Sec.36 .21. Mineral Ownership: pee X Slate Federal Indian Lease# • 22 Surface Ownership Fee FI"—tSlate Federal ~Indian 23. Is the Surface Owner also the Mineral Owner? LYes ( X No Surface Surely ID# 70/8538 23a If 23 is Yes Ls the Surface Owner(s)signature on the leaser 1 Yes olio r 23b 1123 is No. ID Surface Owners Agreement Attached or L.325.000 Blanket Surface Bond 1152,000 Surface Bond 11$5.000 Surface Bond 24. Using standard OMOtr,Sec,Twp.RN formal enter entire mineral lease description upon which this proposed wellsite is located(attach separate sheeUmap it you prefer): SEE LEASE ATTACHED(Slate of Colorado) 25. Distance to Nearest Mineral Lease Line: 50' 26. Total Acres in Lease 320 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? n Yes n No If Yes,attach conttn,.ncy plan. 28. Will salt sections be encountered cluing dN ^ling? 1 1 Yes Q No 29. Will salt(>15.000 ppm TDS CI)cc oil based muds be used during drilling? II.Yes X No 30. II questions 27 or 28 are yes.Ls this location in a sensitive area(Rule 903)7 II. Yes X Noll 28,29 or 30 are"Yes'a pit permit may be required. 31. Mud disposal: 19 Offsite D Onsite Method. Land Farming n Land Spreading El Disposal Facility 0 Other. NOTE The use of en earthen pit for Recompletion fluids requires a pit permit(Rule 905b)If ar/gas drilling,notify local the officials. Strng Size of Hole Size o1 Casing Weigh!Per Foot _ Seeing Depth Sacks Cement Cement Bottom Cement Top Surface 12.1/4" 8-518" 24* 800' 560 800' Surface Production 7.718" 4.1/2" 11.60 8115' 200 8118' Liner — NA Stage Tool 32 BOP Equipneet Type 11 Annular Preventor n Double Ran Q Rotating Head n None 33 Comments No conductor casing will be used 34. Location ID: _ 336328 35 is this application in a Comprehensive Drilling Plan'? Oyes nNo If Yes enter CDP* _ 36 Is this application part ol a submitted Oil and Gas Location Assessment' O Yes nNo Signed Print Name. CHERYL LIGHT Title: SENIOR REGULATORY ANALYST Date: Email Based on the information provided herein.this Application for Perrnil-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. C OGC C Approved: Director of COGCC Date Permit Number Expiration Date: _ API NUMBER CONDITIONS OF APPROVAL,IF ANY: imil WELL. LOCATION CERTIFICATE : CARMA 28-36 , w SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. NW SEC.36 N 88'58'26" E 2642.29' N 88'30'57" F 2633.50 � NE SEC.36 �- 'NY, SEC.36 BH-50 FNL ` 2"ALUM.CAP 334"ALUM.CAP 1I LS 233500500 LS 18482 272"ALUM.CAP 4, 590' FWL LS 28273 60 , w SURFACE LOCATION � 9'+v I En .1- GROUND ELEVATION=4831' Iszj, o NAD83 1356'-..-•---•-� • N LATITUDE=40.18766° - � a CARMA 28-38 c° LONGITUDE=104 94662" ��CARMA 41-36 0 N BOTTOM HOLE LOCATION R&M STATE 2.36 _/ L ___ ___ NAD83 __ rn R&M STATE 1-36 i o LATITUDE=40.18974° I N ern LONGITUDE=104.95138" I No I N b PDOP=2 04 I co Z GPS OPERATOR:TRAVIS KRAICH E Y,SEC.36 W Y4 SEC.36 _-- _ - 1-- - -- - --Q?34"ALUM.CAP 2Y1"ALUM CAP 4?- - - - LS 29420 LS 38065 Lo NOTES: o o THIS IS A DIRECTIONAL WELL o N BH LOCATION TO BE 50'FNL&2590'FWL q N BH LOCATION PROVIDED BY CLIENT. 1 A Wn v1 N LAND SURFACE USE-DRYLAND CROP 6 TWINNING PROPOSED WELL GARMA 41-36 - In z3 TOBE16'SE m PROPOSED WELL CARMA 41-36 TO BE • • 4..1 842'FNL&1344'FEL rn op,n R&M STATE 2-36 IS 58'SW 1r o p R&M STATE 1-36 1S 11T SE O o SEE ATTACHED MAP FOR ADDITIONAL co (-1.1z IMPROVEMENTS WITHIN 400'. v) S Y4 SEC.36 2YZ'ALUM.CAP SE SEC.36 SW SEC.36 LS 38065 ill 2Y2"ALUM.CAP 3Ya"ALUM.CAP w S 88'1 3'03" W 2637.33 ILLEGIBLE LS 18482 S 88.1 3'09" W 2637.41' WELL CARMA 28-36 TO BE LOCATED 831'FNL AND 1356' FEL, SECTION 36, T3N, R68W OF THE 6th P.M. LEGEND 0 500 1000 =EXISTING MONUMENT •1 =BOT TOM HOLE BH=BOTTOM HOLE =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR..A LICENSED PROFESSIONAL LAND SCALE:1`v1000' SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES: CERTIFY TO KERR-MCGEE OIL&GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O.G.C.C.RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO.215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES WELL CARMA 28-36.THIS CERTIFICATE DOES NOT DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT .O ,Cf:REDUCTIONS SOLUTIONS. SURVEY PLAT AS DEFINED BY C R S.38-51-102 AND VERTI AL NAVDE8;USING 0 P U.S.HORIZONTAL=NAO83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. OvfO••N'µ 04(..•.,,(A 3 THE BEARINGS SHOWN HEREON ARE BASED ON CPS Oa`, .��d OBSERVATIONS BETWEEN THE MONUMENTS SHOWN HEREON AS FOUND ON THE FIELD DATE BELOW W 34997 ≤ 4 DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED ECM .1 IN THE FIELD,WITH TIES TO WELLS MEASURED AT A ..: •• PERPENDICULAR TO SECTION LINES. JERRY F.HARCEK JR..PLS 34997 '•• COLORADO LICENSED PROFESSIONAL LAND SURVEYOR 7.i;' A s FOR AND ON BEHALF OF P.F.S.,LLC ,• '•'�`,E+L, 'mg uu IT. . FIELD OATS: WELL MARE, .. 11-18-09 CARMA 28-36 — — Pa!' HAYI MS°ATI. SURFACE L OCAT I ON:• NOTICE ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL.ACTION BASED UPON ANY A. 11-20-09 _WELD COUNTY,COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVENT 1NIW.>TAr. M1 o NW 1/4 NE 1/4,SEC.36,T3N,R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN'IEN YEARS Wm,(DM0a1 SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON. 1 n FORM State of Colorado r: .I_..._ 2 I i ar.(eroa Oil and Gas Conservation Commission 1120 Lmron Steel,Snle 401.Dever,Cota'ado 00203 Phore 13030394.2100 Facr3W)894-2t0e o;L a APPLICATION FOR PERMIT TO; L r- ?' 1 EX Drfll, Q Deepen. a Re-enter, n Recanplele and Operate III12. TYPE OF WELL RefikngR Pugging Bond Surety iOw OILEd GAS x 1 COALBEDE OTHER: Sidetrack 20010124 J SINGL ZONE MULTIPLE ZONES[ ] COMMINGLE ZONES centers me Artachmonl CMekM 3, Name of operator Kerr-McGee Oil&Gas Onshore LP 4.COGCC Operator Number. 47120 op cock 5 Address P.O.Box 173779 APD Ong B'Copy City Denver Sate: CO Zip: 80217.3779 Form 2A 16 Contact Name Cheryl Light Phone 720-92.9-8481 Fax: 720-929-7461 Well location plat 7. Well Name: CARMA _Well Number: 32-36 Topo map f8. Unit Name(rfappl) _ Unit Number: ._.- Mineral lease map 9 Proposed Total Measured Depth. 8239' Surface agrmbSurety WELL LOCATION INFORMATION 30 Day notice letter 10. O/Ot: SENW Sec: 36 Two. 3 Rog' 68 Meridian: 6th.PM Deviated Drilling Plan Latitude: N.40 18575' Longitude: W.104.95553' Exception Location mum. FeFM Request Footage Al Surface 1488 R. 1432 FWL Exception Loc Waivers 11. Field Name Wattenberg _Field Number 90750 H2S Contingency Plan 12. Ground Elevation: 4864 13 County Weld Federal Dotting Permit 14 GPS Data Date of Measurement 11/1812009 PDOP Reading:_ 2 Instrument Operator's Name. Travis Kreich • 15. II well is: �X Deectional O Horizontal(highly deviated), submit deviated drilling plan. Borlomhole Sec TwpRng: SWNWT3N-R68W-Sec 36 MAT& %E!FN1 MIST mL,Mt Footage At Top of Prod Zone 2625 J ® 50 1 FM Al Bottom Hole: i 2625 1 ® 50 I FM. 16. Is location in a high density area(Rule 603b)? a Yes �x No 17. Distance to the nearest building,public road,above ground utility of rarkoad: 1070' 11 Distance la Nearest Property Lne. 1422' 19.Distance to newest wee penrefeiimngleted n the same formation 1005' 20. LEASE,SPACING AND POOLING INFORMATION Objective Formation(s) Formation Cade Spacing Order Number(a) Unit Acreage Assigned to Well Unit Configuration(NO.SE/4,at.) Niobrara-Codell NB-CD 407 160 SWNW,NWSW-T3N-R68W-See 36 SENE,NESE-T3N-R68W-Sec 35 J Sand JSND T^ - 160 SWNW,NWSW-T3N-R68W-Sec 36 SENE.NESE-T3N-R68W-Sec 35 iiil21. Mineral Ownership Fee EX Slate ^r Federal Indian Lease1 70/8538 22 Surface Ownership: Fee Stale ..--Federal Indian 23 Is the Surface Owner also the Mineral Owner? L_Yes X No Surface Surety 1011 20010125 23a If 23 is Yes: Is the Surface Oamar(s)signature on the lease? Yes nNo 23b 11 23 is No nSurface Owners Agreement Attached or X 525,000 Blanket Surface Bond 7152.000 Surface Bond x55.000 Surface Bond 24. Using standard OVOV.Sec.Twp.Rng format enter entire mineral lease descnphon upon which this proposed website is located(attach separate sheet/map if you prefer). SEE LEASE ATTACHED(State of Colorado) 25 Distance to Nearest Mrlerai Lease Line 50' 26. Total Acres it Lease: 320 --- DRILLING PLANS AND PROCEDURES 27. fo H2S anticipated, CD Yes I f No �11- '1 Yes,- attach conbn•=ncy plan 28. Will salt sections be encountered cluing drillings I I Yes ©No 29. Will salt(>15,000 ppm TDS CI)a oil based muds be used during drilling? IIM Yes I_I No 30. II questions 27 a 28 are yes,is this location in a sensitive area(Rule 903)7 Yes No If 28,29 or 30 are'Yes'a pit permit may be required. 31. Mud disposal: X Offsite ❑Onsde Method: Land Farming 0 Land Spreading O Disposal Facility Q Outer: NOTE.The use of an earthen pit for Recompletiorr fluids reouires a pit permit(Rule 905b.)It air/gas drilling,notify local ice officials. Sting Size of Hole See of Casing Weight Per Foot Seeing Depth Sacks Cement Cement Bottom Cement Top _ Surface 12-1/4" 8-5/8" 244 800' 560 800' Surface Production 7-718" 4-112" 11 84 8239' 200 8239' Liner NA Stage Tod -- 32. BOP Equipment Type: 1 7 Annular Prevenbr n Double Ram n Rotating Head I I None 33. Comments No conductor casing will be used 34 Location ID 336220 35. Is this application in a Comprehensive Drilhrlg Plan? Oyes nNo If Yes annr cone 36. Is this application pert of a submitted Oil end Gas Location Assessment? nYes nNo Signed: Print Name: CHERYL LIGHT Title: SENIOR REGULATORY ANALYST Date Email: Rased on the information provided herein,this Application for Permit-lo-Drill complies with COGCC Rules and applicable orders and is hereby approved COGCC Approved Director of COGCC Dale Permit Number Expiration Date API NUMBER CONDITIONS OF APPROVAL,IF ANY: • 05- WELL. LOCATION CERTIFICATE : CARMA 32,:,36 SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. NW SEC.36 N 88'58'26" E 2642.29' N 88'30'57" F 2633.50' NE SEC 36 2"ALUM.CAP 3Ya"ALUM.CAP N Y4 SEC.36 LS 23500 LSi8482 2Yi'ALUM CAP LS 28273 SURFACE LOCATION N la m' GROUND ELEVATION=4864' o `r 00 NAD83 NLATITUDE=40.18575° a CARMA 32-36--\\ LONGITUDE= 1O4.95553° 'o CARMA 12-36 m BOTTOM HOLE LOCATION p ...,-- 1432'— . I NAD83 N) rl a) in ♦ II LATITUDE=40.18259° o AMLIN STATE 6-36 LONGITUDE"- 1O4.96O48° o O iv o N` I I 1p 2 t,c) to1 STATE OF COLORADO ' PDOP=2.04 5 • IBS UNIT 1 GPS OPERATOR TRAVIS KRAICH EY4SEC 36 W Y SEC.36 I __ - _ __ _ -- -- -- -- 3Y4"ALUM CAP 2W'ALUM.CAP BFI 2625' FNL — - _ 36-' LS 29420 LS 38065 rT 50' FWL In O o NOTES 0 2 THIS IS A DIRECTIONAL WELLWm: o 4., BH LOCATION TO BE 2625'FNL&50'FWL I 4` "N BIi LOCATION PROVIDED BY CLIENT. 0 LAND SURFACE USE-DRYLAND CROP Z S TWINNING PROPOSED WELL CARMA 12.36 , r-9 • TO BE15'SE QoM PROPOSED WELL CARMA 12-36 TO BE 4T Trt 1499'FNL&1443'FWL 01 I-L.o HAMLIN STATE 6-36 IS 56'SW I 'LP O o STATE OF COLORADO B8 UNIT 1 IS 123'SW co z SEE ATTACHED MAP FOR ADDITIONAL I to IMPROVEMENTS WITHIN 400'. SY4 SEC.36 2Y2"ALUM.CAP SE SEC.36 SW SEC 36 LS 38065 3Ya"ALUM.CAP ILLEGIBLE ALUM.CAP LS 18482 S 88-13'09" w 2637.41' S 88'13'03" W 2637.33' WELL CARMA 32-36 TO BE LOCATED 1488' FNL AND 1432'FWL, SECTION 36, T3N, R68W OF THE 6th P.M. LEGEND 0 5 0 0 1000 w .=EXISFING MONUMENT } -BOTTOM HOLE BH=BOTTOM HOLE PROPOSED WELL • =EXISTING WELL - I.JERRY F.HARCEK JR,A LICENSED PROFESSIONAL LAND SCALE;1~1000' il SURVEYOR IN THE STATE OF COLORADO DO HEREBY NOTES: CERTIFY TO KERR-MCGEE OIL&GAS ONSHORE LP, 1 THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O.G.C.C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO 215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL,ARE BASED ON GPS-RTK VALUES ........ 1L�CE�L. DERIVED FROM DOING 2-HOUR STATIC UPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT 4°44. % REDUCTIONS USING O.P.U.S.SOLUTIONS SURVEY PLAT AS DEFINED BY C R.S.38-51-102 AND .4. '°° ',YS VERTICAL c NAVD88. HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP. ;° • �AR('.1•ti.�Q• 3 THE BEARINGS SHOWN HEREON ARE BASED ON GPS : O4(' T•°' OBSERVATIONS BETWEEN THE MONUMENTS SHOWN J► 4., • HEREON AS FOUND ON THE FIELD DATE BELOW. ( �y SA 199 �i 4. DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED as JT^ IN THE FIELD,WITH TIES TO WELLS MEASURED AT A ' 1 ,lf PERPENDICULAR[0 SECTION LINES. :•. r JERRY F.HARCEK JR..PLS 34997 • COLORADO LICENSED PROFESSIONAL LAND SURVEYOR •°''•• •••:� 4. FOR AND ON BEHALF OF P.F S.LLC •••`tONA .• rum-inn . MID 0511: WELL MANE: ''•aa•.•."'�• • .. _11-1L-042______, CARMA 32.36 =•� 0AAVi1G IA1t MACE 10151 IN NOTICE'ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION BASED UPON ANY -� 1 1-20-09 DEFECT IN THIS SURVEY WITHIN THREE.YEARS AFTER YOU FIRST DISCOVER SUCH DE FEC F IN NA EVENT If WELD COUNTY,COLORADO 101 W II) U. II; SE 1/4 NW 1/4,SEC.36,T3N,R68W MAY ANY AC I ION BASED UPON ANY ULI-EC I IN THIS SURVEY 81 COMMENCED MORE THAN TEN YEARS •CO I»I SAW FROM THIS SAID DATE OF 1 H1S CERTIFICATION SHOWN HEREON. r. r p u 9 FORM State of Colorado f' ;;-;:; I - 2 1 ne°owoe I Oil and Gas Conservation Commission ' ' . ) I125Lfr ,Street S.rde tot Denver.Coif'silo 6020 i Phone(303l8&42'vJ Fax(303)894-2I09 'v, APPLICATION FOR PERMIT TO: L 4r`n! 1 0 Drill, 11 Deepen, n Re-enter, n Recomplete and Operate • 2. TYPE OF WELL Reeling pluggrng Bond Surety 101 0p X GASI X t COALBEDE] OTHER: Sidetrack 20010124 I Si E ZONE[" MULTIPLE ZONES COMMINGLE ZONESnn Complete UM Aaedment Cheekier _ l3. Name or operator Kerr-McGee Oil a Gas Onshore LP 4 COGCC Operator Number: 47120 OP COal 5 Address: P O.Box 173779 APD Ong 61 Copy City Denver State. _ CO Zip: 80217-3779 Form 2A 6 Contact Name Cheryl Light Phone 720-929-6481 Fax. 720-929-7461 Well location plat 7 Well Ne ne CARMA Well Number 41-38 Topo map 8 Unit Name(6 apple Unit Number: ,Mineral lease map 9 Proposed Total Measured Depth: 7617' Surface agrmtlSurety WELL LOCATION INFORMATION 30 Day notice letter 10. QlrQR NWNE Sec. 36 Twp: 3 Rng 68 Meridian: 6th.PM Deviated Dnling Plan Latitude: N.40.18763' Longitude: W.104.94658° Exception Location Fwsu FEvwt Request Footage At Surface: 842 ® f 1344 FEL Exception Loc WaNers 11 Field Name: Wattenberg Feld Number. 90750 H2S Contingency Plan 12. Ground Eevahon: 4831 13 County' Weld Federal Drilling Permit 14 GPS Data. Date of Measurement ,11/18/2009 POOP Reading. 2 Insbumenl Operator's Name: Travis Kraich • 15. 1!well is: �X Directional I-1 Horizontal(highly deviated), submit deviated drilling plan. Bottornhole Sec Twp Rng NENE-T3N-R68W-Sec 36 MASI fr1pWt FMK rEucw. Footage At Top of Prod Zone 1325 ® I 50 ; FEL AI Bottom Hate. 1325 ® f 50 1 I FEL 16 is location in a high density area(Rule 603b)7 n Yes n No 17 Distance to the nearest building,public road,above ground ulilty or railroad: 842' 18 Distance to Nearest Properly Line: 483' 19.balance In newest well yemdredrmmpwled is as sare brmA.on: 957' 20. LEASE,SPACING AND POOLING INFORMATION Objective Formation(s) Formation Code Spacing Order Number(s) _ Unit Acreage Assigned to Well . Unit Configuration(N12,SE/4,etc.) Niobrara-Codell NB-CD 407 160 E2NE-T3N-R68W-Sec 36 W2NW-T3N-R67W-Sec 31 J Sand JSND 160 E2NE-T3N-R68W-Sec 36 W2NW-T3N-R67W-Sec 31 , 21 Mineral Ownership' Rae �X State Federal . Indian Lease4 70/8538 fib22. Surface Ownership X Fee State Federal Indian 23. Is the Surface Owner also the Mineral Owner? LYes I X No Surface Suety Olt 23a If 23 is Yes: Is the Surface Owner(s)signature on the lease? I Yes nNo 23b to 23 is No: nStrface Owners Agreement Attached or LS25.000 Blanket Surface Bond 1152.000 Surface Bond 1755.000 Surface Bond 24 Using standard QYOb.Sec,Twp.Rng format enter entire mineral lease description upon which this proposed welisie is located(attach separate sheellmap d ycu prefer): SEE LEASE ATTACHED(State of Colorado) 25 Distance Is Nearest Mineral Lease Line 1' 26 Total Acres in Lease: 320 DRILLING PLANS AND PROCEDURES 27. Is H2S anticipated? 1-7 Yes O No 8 Yes,attach contingency� plan. 28 Will sag sections be encountered dung drilling? Fl Yes I No 29 Will sap( 15,000 ppm IDS Cl)or oil based mutts be used during ailing? Yes I_'No 30 If questions 27 a 28 are yes.is this location in a sensitive area(Rule 903)? Yes No It 28,29 or 30 are"Yes'a pit permit may be required. — 31. Mud disposal X'Ofisite El Onsile Method Land Farming �X Land Spreading n Disposal Facify n Other NOTE:The use of an earthen pit for Recompletion fluids recuires a pit permit(Rule 905b.)If air/gas trilling,nobly local Ere Ocials. String Size of Hole Sae of Cesmg Wei ghf Per Foot Setting Depth _-Sacks Cement Cement Bottom Cement Top Surface 12-1r4 8-518" 24$ 800' 560 BOO' Surface Production 7-7/8" 4-1/2" 11.68 7617' 200 7617' Liner NA t Stage Tool 1 32. BOP Equipment Type O Annular Preventor n Double Ram I-1 Rotating Head Q None 33 Comments No conductor casing will be used 34 Location ID. 336328 35 Is Misapplication In a Comprehensive Drilling Plan? aYes[-I Noif Yes enter Cope 36. Is this application part of a submitted Oil and Gas Location Assessment" lives CDNo Steed. ... _ ^Print Name: CHERYL LIGHT Title' SENIOR REGULATORY ANALYST Date' Email. Based on the information provided herein,this Application for Permit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved COGCC Approved:___- Director of COGCC bate Permit Number Expiration Date: API NUMBER CONDITIONS OF APPROVAL,IF ANY: 005- WELL LOCATION CERTIFICATE CARMA 41:36 II SECTION 36, TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH P.M. NW SEC.36 N 88'58'26" L 2642.29 N 88'30'51" E 2633.50' NE SEC.36 ILI 2"ALUM.CAP 3Y4"ALUM.CAP iii, N Y4 SEC.36 LS 2.3500 LS 18482 2Y2"ALUM.CAP LS 28273 SURFACE LOCATION , LA v GROUND ELEVATION=4831' a `D NAD83 I ,1344•----.--- n LATITUDE=40.18763" CARMA 41-3 ! } S '0s�43 4 1° N LONGITUDE=104.94658" "E o BOTTOM HOLE LOCATION R&M STATE 2-3f J CARMA 8-36 ,J37' w m NAD83 BH- 1325' FNL col LATITUDE=40.18638° I R&M STATE 1.36 I 50' FEL cn ,n LONGITUDE=104.94195° ul o o PDOP=2.04 I Do'o z GPS OPERATOR:TRAVIS KRAICH E 4 SEC 36 W Y4 S£C. 36 I -_._ - - - - -- gb 31/4"ALUM.CAP 2Y1'ALUM.CAP{t---" -- - --- - - - - LS 29420 LS 38065 Ni NOTES• cR o o THIS IS A DIRECTIONAL WELL CD N- 1314 LOCATION TO BE 1325'FNL&50'FEL c I-0 N- BH LOCATION PROVIDED BY CLIENT. I a L LAND SURFACE USE-DRYLAND CROP I 6 TWINNING PROPOSED WELL CARMA 8-36Fri - c TO BE 16'SE m• PROPOSED WELL CARMA 8-36 TO BE M 853'FNL&1332'FEL ft,4-) R&M STAIE2-36IS51'SW o 4 o R&M STATE 1-36 IS 102'SE I 0 p SEE ATTACHED MAP FOR ADDITIONAL to cn Z IMPROVEMENTS WITHIN 400'. 1n Q SY. SEC.36 m 23'x'ALUM.CAP SE SEC.36 SW SEC.36 LS 38065 a 2Yz'ALUM.CAP 3Y4"ALUM CAP, S 88'13'03" W 2637.33' ILLEGIBLE LS 18482 S 88'13.09" W 2637.41' WELL CARMA 41-36 TO BE LOCATED 842' FNL AND 1344'FEL, SECTION 36,T3N, R68W OF THE 6th P.M. LEGEND 0 500 1000 =EXISTING MONUMENT ♦ =BOTTOM HOLE 8H=BOTTOM HOLE • =PROPOSED WELL • =EXISTING WELL I,JERRY F.HARCEK JR.,A LICENSED PROFESSIONAL LAND SCALE 1`-1 SURVEYOR IN THE STATE OF COLORADO DO HEREBY NO TES. CERTIFY TO KERR-MCGEE OIL b GAS ONSHORE LP, 1. THIS SURVEY WAS DONE BY GPS METHODS AND CONFORMS THAT THE SURVEY AND WELL LOCATION CERTIFICATE TO THE MINIMUM STANDARDS SET BY THE C.O.G.C.C.,RULE SHOWN HEREON WERE DONE BY ME OR UNDER MY DIRECT NO 215 SUPERVISION AND THAT THE DRAWING SHOWN HEREON 2 ELEVATIONS SHOWN AT THE WELL HEAD,AS WELL AS ACCURATELY DEPICTS THE PROPOSED LOCATION OF THE HORIZONTAL CONTROL ARE BASED ON GPS-RTK VALUES WELL CARMA 41.36.THIS CERTIFICATE DOES NOT 0 Lie DERIVED FROM DOING 2-HOUR STATIC GPS SESSIONS AND REPRESENT A LAND SURVEY PLAT OR IMPROVEMENT r"-..' F� REDUCTIONS USING O P.U.S.SOLUTIONS. SURVEY PLAT AS DEFINED BY C.R.S.38-51-102 AND �0.�(.•R()''tis� VERTICAL=NAVU88; HORIZONTAL=NAD83/92 CANNOT BE RELIED UPON TO DETERMINE OWNERSHIP VO"'� �is.'t Q 3 THE BEARINGS SHOWN HEREON ARE BASED ON GPS OBSERVATIONS BETWEEN THE MONUMENTS SHOWN L.; HEREON AS FOUND ON THE FIELD DATE BELOW ‘I) An 4. DISTANCES SHOWN ARE AT GROUND LEVEL,AS MEASURED • IN THE FIELD,WITH TIES TO WELLS MEASURED AT A , . ' PERPENDICULAR TO SECTION LINES. JERRY F HARCEK JR..PLS 34997 •/n(�'-- '',•, COLORADO LICENSED PROFESSIONAL LAND SURVEYOR -MkLitto FOR AND ON BEHALF OF P F S.,LLC n ruu a FI1-D 0 VEIL ME: • t. 11-18.09 CARMA 41-38 - - 6:1, MIME VATS: SVRFACE LOWION, NOTICE.ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTON BASEL)UPON ANY _ _�-�• 11-20-09 WELD COUNTY,COLORADO DEFECT IN THIS SURVEY WITHIN THREE YEARS AFTER YOU FIRST DISCOVER SUCH DEFECT IN NO EVENT TIIM.1DllM �� IT: NW 1/4 NE 1/4,SEC.36,T3N,R68W MAY ANY ACTION BASED UPON ANY DEFECT IN THIS SURVEY BE COMMENCED MORE THAN TEN YEARS ate.COMP SMF FROM THIS SAID DATE OF THIS CERTIFICATION SHOWN HEREON. • .1(;ftEI:VlENT I'his vlc'tll+.iratndwn shall provide notice to all parties that Kerr-\lcUec Oil &(.ia•(inshore. I.1'. a f)clit\cart: linlilrcl partnership-Kerr-I Ic(ic•cr and('; 'ma l;ayshore I.1.(•. li i\t.entcred inln a \tirlace agreement J;itcil rthe "Agrrt'nIcnt"I covering the lands CIC,crihra i1n i.`.111E111 \ lit oilier i1I;IItt-r,. Ills' r\`'It'c11tt'llI rirmitk'. et•rl:iin iIC�'tiI11111i,di1iu�l� lip Ili Illiltli h both parties. and atnhtlriies. Kerr \Ic(il't' to i;+'ndut't drilliii operation%on Ihc' nisi \1-LIk;II Olt' 100011 iii It+t:;iliinl\ in I iwri'Iiill 3 North. Ranee($ti \4'rq. Section 3(+: K\1(i 2_•3ei (enter of lht' V\V/-4 of Svoion 3h FOR; _:i +h t enter or the NE/4 UI Section zh 111 h\1(; .;' It: ('enlel tsi'Ihe NW/1 +prSedum .th l \•Ili I I tt ( t iuer t i! I ln' `�1,'101 Set"ion ;to \1(i 3 .;ti (. ruler c+l Ilk' NM,./.4 of Soo iou ;(i K\•i(i ' 4() (.eliter ! tha \N:1 of Sec uti11 ≥(l Km ' .4, t rlllt:l't+I ilte \I .(4 t+t tic•t'lit+tt 3h K\E(i l... .;t, (.enter i+l Ilti NW!! <il Section .'() The it:rr:' of the A ireerrient .Shall he liir the tiitialiot) i+I the oil and ;:as. lL i', I'il�•x!;11. :O'erill! lilt' slihjeci L{Ililti. Further iitfo'itl,iliosl o1 lilt .��iitt'111t'lll 111;1\ l ihlalinell h\ c'Olt;tt:llni Kerr ? le(iee at 1t)) ) ;dui Stl'..t. Sulk: I$IK). l.)C11\ci.CO$021)2. itnaallliill Dvii\er Basin I..tad \1an,ti_:r. • • L; tifet.I this - ..... . �l;t. c'i ....:....• _..(ilr:►. KLRR-\'k(iiLL OIL& OAS ONSHORL. I_i' By: J.\AIL: :1NN B1 KU:\L) Title: A1tortscv-if-rags )alp ('r\RM:\ Li.\1'SHORL: Lt_C liy: f'Hkl i(WHIR IiRI:MNF.k "rifle: tioIiiI I I).•\:•hysnen! \I.sssa;'cr 11ast�: • • ACKNOWLEDGMENTS STATE OF ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of _ 2009.by Jane Ann Byroad as Agent&Attorney in Fact of Kerr-McGee Oil&Gas Onshore LP,a Delaware limited partnership. WITNESS my hand and official seal. My commission expires: Notary Public STATE OF (dile.(4-6L� ) ) ss. COUNTY OF Y &ea ) The oregoing instrument was acknowledged beibre me this 1 day of k ffetbk 6E4' 200'). by Christopher Bremner as Senior Development Manager of Carma Bayshorc LLC. WITNESS my hand and official seal. My commission expires: ;� _.�{—I/'�•IJL{ ^; AA.. A Notary Public LA { uEMNJFE•ii 1��• M1Lts • vi1'w': 1'`'I'. kt4T4 ATE ;'-3(i i"XI STItlr) - i rii:i'c1SCU WE.LS ,-` •--. �i IC:0.,..ALONG NW LI'Jk 0' ` ,y% Iej. _ _ ;' 't 48' ? I . / co ,.,., N., . ':.,cv" •. :•. _HMO STAT %-,•4.5 I N.1 � i \• ' ' i tr.,.. t . f R r 1 • ifs i ' • - . _ . _. . Vii.` • V • SAK r K1 ,1'x:77'1-•Y;, • i Y N F1 SECTION 36 — NE is kE r) LA\ N WELL L0CAT ON EXHIBIT I ',ra•,:,, iv,- ,.,+,,,,i. BAYSHORE 06129/09 0 N 0 sGr,, d 0.Nniiitt:l I / •,'` =:KISIINC WEL_I Air- „1 i „ 0 , I;,,,, fi.. X150 (+'I'f , s, --:'_:;..4:3 ./ - .r L.XIS I ING 'r•_L_h;.AL; 4// , . s� i 0'{ ', • J.% f x _04). %fill`lank bath' , ; t • .7- � II . it • I SECTION 36 - NW 14 IZE ni_A\ N WELL LOCATION EXHIBIT 1 11►J*,:ll Ill.l. i.li,1++,' BAYSHORE 06/29109 0 Emergency Response Contact List . 10. Emergency Response Contact List Incident Contact Phone Number Comments Fire,explosion, Mountain View Fire 911 or serious injury Protection District (303) 772-0710 Weld County Sheriffs 911 or Department (970) 356-4015 COGCC (303)894-2100 Fire, explosion, Mountain View Fire 911 or associated with loss Protection District (303)772-0710 of well control Weld County Sheriffs 911 or Department (970)356-4015 COGCC (303)894-2100 Wild Well Control, Inc. (281)353-5481 Commercial well control contractor. Reporting required for spills of crude Spill or release COGCC (303)894-2100 oil, produced water,or E&P waste exceeding 5 bbl or all spills that impact surface or ground water. Reporting required for spills Mountain View Fire 911 or impacting surface water or for Protection District (303)772-0710 reportable quantity spills of CERCLA hazardous substances. Reporting required for spills Colorado Department of Public Health and (800)886-7689 impacting surface water or for Environment reportable quantity spills of CERCLA hazardous substances. Reporting required for spills US EPA (800)227-8917 impacting surface water or for reportable quantity spills of CERCLA hazardous substances. Reporting required for spills National Response (800)424-8802 impacting surface water or for Center reportable quantity spills of CERCLA hazardous substances. KMG and Contractor Tommy Thompson, (720)929-6724 o Drilling and completion operations. Contacts General Manager, Drilling (303)681-6011 m David Dalton, (970)330-0614 o Drilling/Completion (970)590-6245 m Drilling and completion operations. Foreman Keith Kilcrease, (970)506-5881 o Drilling, completion, and production Production Supervisor (970)590-6246 m operations. Tim Spencer, (970)506-5926 o Drilling,completion,and production Safety Analyst (970)590-6252 m operations. Paul Schneider, (720)929-6726 o Drilling,completion, and production Staff EHS&Regulatory (303)868-6665 m operations. Analyst Cindy Haefele, (970)506-5925 o Drilling,completion, and production Area Manager (970) 590-6280 m operations. Joe Freeman, (720)929-6534 o Drilling,completion, and production S&H Manager (303)710-9988 m operations. • Carma Wells 10-1 T3N-R68W-36: N/2 Weld County, Colorado • • xr Ntia Kerr-McGee Oil&Gas OnShore LP A subsidiary of Anadarko Petroleum Corporation 1099 18th Street Denver,CO 80202 (720)929-6000 February 5,2010 Mountain View Fire Protection District Attn:LuAnn Penfold,Fire Marshal 9119 County Line Road Longmont,CO 80501 Re: Emergency Response and Fire Protection Plan—Proposed Oil and Gas Wells Township 3 North,Range 68 West,6th P.M. Section 36:N/2 Weld County,Colorado Dear Ms.Penfold: Kerr-McGee Oil and Gas Onshore LP (KMG), an Anadarko company, proposes to directionally drill 9 wells from two existing oil and gas operations areas and associated production facilities. The proposed well locations fall within an approved Planned Unit Development in Weld County, Colorado known as St. Vrain Lakes PUD. The County requests that KMG prepare and submit an Emergency Response and Fire Protection Plan for review by the fire district responsible for the area where the wells will be located. Attached for your review is a copy of the plan covering the wells listed below: Well Names Surface Locations -S.of WCR 28,N.of WCR 26 between WCRs 11&13 • Ops Area I:Carma 3-36 T3N,R68W,Section 36:NW/4 Canna 5-36 Carma 12-36 Carma 21-36 Canna 22-36 Carma 32-36 Ops Area 2:Carma 8-36 T3N,R68W,Section 36:NE/4 Canna 28-36 Canna 41-36 Provided that the enclosed materials meet with your approval, and so that Weld County is certain that their requirement has been met,please date and sign below,returning one original to me in the enclosed envelope. If you have any questions or comments regarding the enclosed materials,please contact me at(720)929-6303. Thank you for your time and consideration in this matter. Sincerely, KERB`&GAS ONSHORE LP Kimberly M.Cooke Land Analyst Enclosures Reviewed and accepted this n�- day of We. e.s o r ,2010 —\ • By:r �� , ' _k r.Qc'J LuAnn Penfold,Fire Marshal, ountain View Fire Protection District • Eves. Response&Fire Protection 1.1 EMERGENCY RESPONSE& FIRE PROTECTION PLAN • 1.1.1 Scope Kerr-McGee Oil & Gas OnShore LP (KMG), an Anadarko company, has prepared this Emergency Response and Fire Protection Plan (the Plan). The Plan has been put together to address potential emergency response issues associated with the drilling, completion, and production of 9 oil and gas wells. KMG plans to drill the following wells in 2010,within Weld County, Colorado. Well Name Well Name Carma 3-36 Carma 22-36 Carma 5-36 Carma 28-36 Carma 8-36 Carma 32-36 Carma 12-36 Carma 41-36 Carma 21-36 1.1.2 Regulatory Requirements The Plan has been prepared to comply with the land use regulations of Weld County. Incorporated in the Plan are the best management practices and safety, health, fire prevention, and environmental requirements outlined in the rules of the Colorado Oil and Gas Conservation Commission(COGCC). A complete copy of the COGCC 600 and 900 Series rules addressing safety and environmental protection are included as Attachment 1. 1.1.3 Location of Wells The well sites will be located in the N/2 of Section 36, Township 3 North, Range 68 West. The well names, locations, and directions necessary for access by emergency responders are presented below. The wells and tank battery locations are also shown on the aerial photograph included as Attachment 2. Well Names Location Directions Carma 3-38, 5-36, 12- NW/4 Sec. 36,T3N-R88W FROM THE INTERSECTION OF WCR 11 36,21-36,22-36 and and WCR 28: Proceed east on WCR 28 to the 32-36 lease access road. Turn right onto the lease access road and head south to the well heads and production facilities. Carma 8-36, 28-36 NE/4 Sec 36,T3N-R68W FROM THE INTERSECTION OF WCR 11 and 41-36 and WCR 28: Proceed east on WCR 28 past the NW access road to the NE lease access road. Turn right onto the lease access road and head south to the well heads and production facilities. 1.1.4 Emergency Response All drilling, completion, and production activities will be performed by KMG and its contractors. This process will be carried out in a manner that is protective of public health, safety, welfare, and the environment, to minimize the potential need for emergency response activities. In the event of fire, injury, spill or release of hazardous materials, or any other incident requiring and emergency response,the following contacts will be made: • Carma Wells 1 T3N-R68W-36: N//2 Weld County, Colorado Emergency Response &Fire act. • 1.1.5 Emergency Response Contact List • Incident Contact Phone Number Comments Fire,explosion, Mountain View Fire 911 or serious injury Protection District (303) 772-0710 Weld County Sheriffs 911 or Department (970)356-4015 , COGCC (303)894-2100 Fire,explosion, Mountain View Fire 911 or associatedwith loss Protection District (303)772-0710 of well cont rol well control Weld County Sheriffs 911 or Department (970) 356-4015 COGCC (303) 894-2100 Wild Well Control, Inc. (281) 353-5481 Commercial well control contractor. Reporting required for spills of crude Spill or release COGCC (303)894-2100 oil, produced water, or E&P waste exceeding 5 bbl or all spills that impact surface or ground water. Reporting required for spills Mountain View Fire 911 or impacting surface water or for Protection District (303)772-0710 reportable quantity spills of CERCLA hazardous substances. Reporting required for spills Colorado Department of impacting surface water or for Public Health and (800)886-7689 Environment reportable quantity spills of CERCLA • hazardous substances. Reporting required for spills impacting surface r or for US EPA (800)227-8917 reportable quantity apes of CERCLA hazardous substances. Reporting required for spills National Response (800)4248802 impacting surface water or for Center reportable quantity spills of CERCLA hazardous substances. KMG and Contractor Tommy Thompson, (720)929-6724 o Drilling and completion operations. Contacts General Manager, Drilling (303)681-6011 m David Dalton, (970)330-0614 o Drilling/Completion (970)590-6245 m Drilling and completion operations. Foreman Keith Kilcrease, (970)506-5881 o Drilling, completion,and production Production Supervisor (970) 590-6246 m operations. Tim Spencer, (970)506-5926 o Drilling,completion, and production Safety Analyst (970)590-6252 m operations. Paul Schneider, (720)929-6726 o Drilling,completion, and production Staff EHS&Regulatory (303)868-6665 m operations. Analyst Cindy Haefele, (970) 506-5925 o Drilling, completion, and production Area Manager (970)590-6280 m operations. Joe Freeman, (720)929-6534 0 Drilling,completion, and production S&H Manager (303)710-9988 m operations. Emergency response personnel will have unrestricted access to all KMG wells and production • facilities. Carma Wells 2 T3N-R68W-36: N//2 Weld County, Colorado • •e ,Response &Fire Protection 1.1.6 Spill/Release Response • All KMG and contractor activities will be operated in a manner that prevents spills and releases of crude oil, natural gas, produced water, and other wastes to the environment and will comply with federal and state spill response/reporting requirements. KMG employs a formal spill response and reporting guidelines for responding to and reporting spills. All KMG field employees are provided with annual spill response training. In addition, all tank batteries comply with federal Spill Prevention Control and Countermeasure(SPCC)requirements. If a spill or release were to occur, field personnel are instructed to: • Assess immediate danger or threat to health, safety, and welfare and contact emergency responders, if appropriate; • Locate and stop the source of the spill, if safe to do so; • Report the spill to the field supervisor or area manager and arrange for additional response support, including contact support; • Take whatever steps are necessary to prevent the spill from impacting surface water, public health, safety, and welfare; and, • Report to the spill to a KMG Environmental representative, who will coordinate follow-up spill clean-up and environmental assessment activities and who will report the incident to appropriate authorities. 1.1.7 Safety and Fire Prevention Guidelines KMG and its contractors will employ best management practices during the drilling and production of its wells and facilities and will comply with appropriate COGCC rules concerning safety and fire. • • Employees will be familiar with the COGCC rules and regulations concerning safety and fire prevention as they apply to their specific job duties; • All facilities will be visited daily by KMG field personnel. Unsafe or potentially unsafe conditions will be reported immediately to the field supervisor, Area Manager, or Safety representative; • Accidents that result in significant injury or property damage will be reported to the COGCC within 24 hours; • KMG and its contractors will cooperate fully with local and state emergency responders; • Vehicles not involved in drilling, production, or well servicing operations will be kept at least 100' feet from the well bore, or a distance equal to the height of the drilling derrick, whichever is greater; • Appropriate weed abatement measures will be taken prior to and during drilling, workover, and production operations to minimize fire danger; • The drilling rig shall be positioned a distance of 150' feet or one and one-half times the height of the rig derrick, whichever is greater, from any occupied building, public road, major above ground utility line, or railroad; • During well drilling and well servicing operations, a safety valve with connections suitable for use with each size and type of tool joint or coupling being used will be present on the rig floor; • Carma Wells 3 T3N-R68W-36: N//2 Weld County, Colorado , Emergency Response&Fire lipa. • • The drilling rig substructure, derrick, or mast will be designed and operated to prevent the accumulation of static charge; • • Prior to well servicing operations, the well's pressure will be checked and appropriate steps taken to remove pressure or operate safely under pressure before beginning servicing operations; • Appropriate blowout prevention equipment (BOPS) will be utilized during well drilling, completion, workover, or servicing activities, as required by COGCC Rule 317, and in accordance with American Petroleum Institute (API) RP 53: Recommended Practices for Blowout Prevention Equipment Systems, as amended; • BOP equipment will be inspected daily and a preventer operating test shall be performed on each round trip (not to exceed more than once per 24 hour period). Notes of the tests shall be made on the daily report; • All fittings, valves, and unions connected to the BOP, well casing, casinghead, drill pipe, or tubing will have a working pressure rating suitable for the maximum anticipated surface pressure and will be maintained in good working order; • The BOP will contain pipe rams to enable closure of the pipe being used and the choke lines and kill lines will be anchored or secured; • All rig employees shall have an adequate understanding to operate the BOP system; • The drilling contractor will place a sign or marker at the following intersection of WCR 28 and the lease access road that will include emergency contact telephone numbers; • The WCR numbers used to access the rig and appropriate emergency response numbers will be posted on the drilling rig; • • All wells and tank batteries will be kept free of weeds, debris, surplus equipment, and surplus vehicles; • Above ground storage tanks (ASTs) for storage of crude oil and hydrocarbon condensate will be constructed of materials compatible with the materials stored in accordance with appropriate API and Underwriters Laboratories,Inc, standards; • ASTs will be located at least two tank diameters or 35' feet , whichever is smaller, from property boundaries; • ASTs will be located at least one-sixth the sum of their diameters apart; • ASTs will be located at least 200' feet from residences, normally occupied buildings, or well defined normally occupied outside areas; • Earthen berms or a metal firewall sufficient to contain the contents of the largest AST will be constructed and maintained at each tank battery, and no ignition source will be located within the berm/firewall; • ASTs will be located at least 75' feet from the wellhead, any fired vessel, or other ignition source; • Hatches on all ASTs will be kept closed when not in use; • All fired vessels will be located at least 75'feet from the wellhead; • Production facilities will be fenced to prevent access from the public. KMG will comply with the IFC 2006 Fire Codes that require additional labeling of the tanks and storage areas. The required information will be either placards on the storage tanks and containers, or • Carma Wells 4 T3N-R68W-36: N//2 Weld County, Colorado • E•et. Response&Fire Protection signage at the facility. The information will contain the following language: "FLAMMABLE-KEEP FIRE AND FLAME AWAY". Tanks shall bear the additional • marking: "KEEP 50'FEET FROM BUILDINGS;" • Location signs will be posted and maintained identifying the wells, KMG as the operator, emergency contact telephone members, and directions to the facility; • All valves, pipes, and fittings will be securely fastened and inspected at regular intervals to ensure they are maintained in good working order; • Smoking will be prohibited in the vicinity of any fire hazard and signs will be posted to state "No Smoking or Open Flame"; • No source of ignition will be permitted within the "No Smoking" area unless it is determined by the Safety Department safe to do so; • Adequate fire extinguishers will be carried in every field vehicle, plainly labeled as to their type and method of operation, and field personnel will be trained in their use; and, • Fire protection equipment will be inspected regularly and maintained in good working order, in accordance with NFPA 10 requirements. 1.1.8 Material Safety Data Sheets (MSDS) Material Safety Data Sheets (MSDS) for hazardous materials used during the drilling, completion, and production processes are available upon request. This includes crude oil and hydrocarbon condensate stored in the ASTs. Please contact Terry Clark, Health & Safety Manager at 720-929-6597 or Joe Freeman, Safety&Health Supervisor at 720-929-6534 for copies of the MSDS. • • Carma Wells 5 T3N-R68W-36: N//2 Weld County, Colorado • • • Attachment 1 - COGCC 600 and 900 Series Rules • Carma Wells T3N-R68W-36: N//2 Weld County, Colorado • SERIES SAFETY REGULATIONS 601. INTRODUCTION The rules and regulations in this section are promulgated to protect the health, safety and welfare of the general public during the drilling, completion and operation of oil and gas wells and producing facilities. They do not apply to parties or requirements regulated under the Federal Occupational Safety and Health Act of 1970(See Rule 212). 602. GENERAL The training and action of employees, as well as proper location and operation of equipment is an important part of any safety program. While this section is general in nature, it is considered a basic part of the foundation of any safety program. a. Employees shall be familiarized with these rules and regulations as provided herein as they relate to their function in their respective jobs. Each new employee should have his job outlined, explained and demonstrated. b. Unsafe and potentially dangerous conditions as defined by these rules, should be reported immediately by employees to the supervisor in charge and shall be remedied as soon as practical. Any accident involving injury to wellsite personnel or to a member of the general public which requires medical treatment or significant damage to equipment or the wellsite shall be reported to the Director as soon as practicable, but In no event later than twenty-four(24) hours after the accident. A COGCC Accident Report, Form 22, shall be submitted to the Director within ten (10) days of the accident. Accidents that require • only first aid treatment are not subject to these reporting requirements. Where unsafe or potentially dangerous conditions exist, the owner or operator shall respond as directed by an agency with demonstrated authority to do so (such as sheriff, fire district director, etc.). c. Vehicles of persons not involved in drilling, production, servicing, or seismic operations shall be located a minimum distance of one hundred (100)feet from the wellbore, or a distance equal to the height of the derrick or mast, whichever is greater. Equivalent safety measures shall be taken where terrain, location or other conditions do not permit this minimum distance requirements. d. Existing wells are exempt from the provisions of these regulations as they relate to the location of the well. e. Existing producing facilities shall be exempt from the provisions of these regulations with respect to minimum distance requirements and setbacks unless they are found by the Director to be unsafe. f. Self-contained sanitary facilities shall be provided during drilling operations and at any other similarly staffed oil and gas operations facility. 603. DRILLING AND WELL SERVICING OPERATIONS AND HIGH DENSITY AREA RULES a. Statewide setbacks. Subparagraph (1) below shall apply to all areas of the state except as provided under subparagraphs b. and e. of this rule. Subparagraph (2) below shall apply to all areas of the state. • 600-1 As of April 1,2009 • (1) At the time of initial drilling of the well, the wellhead shall be located a distance of one hundred fifty (150)feet or one and one-half(1.1/2)times the height of the derrick, whichever is greater, from any building unit, public road, major above ground utility line, or railroad. (2) A well shall be a minimum distance of one hundred fifty (150) feet from a surface property line. An exception may be granted by the Director if it is not feasible for the operator to meet this minimum distance requirement and a waiver is obtained from the offset surface owner(s). An exception request letter stating the reasons for the exception shall be submitted to the Director and accompanied by a signed waiver(s) from the offset surface owner(s). Such waiver shall be written and filed in the county clerk and recorder's office and with the Director. b. High density area rules for building units. A high density area shall be determined at the time the well is permitted on a well-by-well basis by calculating the number of building units within the seventy-two (72) acre area defined by a one thousand (1000)foot radius from the wellhead or production facility. If thirty-six(36) or more actual or platted building units (as defined in the 100 Series rules) are within the one thousand (1000) foot radius or eighteen (18) or more building units are within any semi-circle of the one thousand (1000) foot radius (i.e., an average density of one (1) building unit per two (2) acres), it shall be deemed a high density area. If platted building units are used to determine the density, then fifty percent (50%) of said platted units shall have building units under construction or constructed. c. High density area rules for other facilities. If an educational facility, assembly building, hospital, nursing home, board and care facility, or jail Is located within one thousand (1000)feet of a wellhead or production facility, high density area rules shall apply. • d. Designated outside activity area. The Commission, upon application and hearing, shall determine the appropriate boundary and setbacks for a designated outside activity area as defined in the 100 Series rules, The minimum setback from the boundary of the designated outside activity area shall be three hundred fifty(350)feet. e. The following rules shall apply in high density and designated outside activity areas: (1) Provisions for encroaching development. If, by virtue of subsequent future surface development, an area becomes a high density area, subsections (2), (3), (7) and (14)shall not apply to the operator. (2) Setbacks for wellheads. At the time of initial drilling of the well, the wellhead location shall be not less than three hundred fifty (350) feet from any building unit, educational facility, assembly building, hospital, nursing home, board and care facility, or jail. (3) Setbacks for production equipment. At the time of initial installation or construction, production tanks, pits, or associated on-site production equipment shall be located not less than three hundred fifty(350)feet from any building unit. Such production tanks, pits, or associated on-site production equipment shall be located five hundred (500) feet from an educational facility, assembly building, hospital, nursing home, board and care facility,jail or designated outside activity area. However, such five hundred (500) foot setback shall be decreased to the maximum achievable setback if five hundred (500)feet would extend beyond the area on which the operator has a legal right to place or construct such facilities. Should the operator object to such five hundred (500) foot setback for any reason, a variance hearing shall be conducted at the next regularly scheduled • meeting of the Commission, subject to the notice requirements of Rule 507. 600.2 As of April 1,2009 • (4) A. Blowout preventer equipment ("BOPE" ) for high density area drilling operations. Blowout prevention equipment for drilling operations shall consist of (at a minimum): I. Rig with Kelly. Double ram with blind ram and pipe ram; annular preventer or a rotating head. ii. Rig without Kelly. Double ram with blind ram and pipe ram. Mineral Management certification or Director approved training for blowout prevention shall be required for at least one (1) person at the wellsite during drilling operations. B. BOPE testing for high density area drilling operations. Upon initial rig-up and at least once every thirty (30) days during drilling operations thereafter, pressure testing of the casing string and each component of the blowout prevention equipment including flange connections shall be performed to seventy percent (70%) of working pressure or seventy percent (70%) of the internal yield of casing, whichever is less. Pressure testing shall be conducted and the documented results shall be retained by the operator for inspection by the Director for a period of one (1) year. Activation of the pipe rams for function testing shall be conducted on a daily basis when practicable. C. Pit level indicators.Pit level indicators shall be used. D. Drill stem tests. Closed chamber drill stem tests shall be allowed in high density areas.All other drill stem tests shall require approval by the Director. (5) A. BOPE for well servicing operations. Adequate blowout prevention equipment shall be used on all well servicing operations. B. Backup stabbing valves shall be required on well servicing operations during reverse circulation. Valves shall be pressure tested before each well servicing operation using both low-pressure air and high-pressure fluid. (6) Location requirement exceptions and waivers. Exceptions to the location requirements set out in (2) and (3) above shall be granted by the Director if the Director determines that Rule 318. has been complied with and that a copy of waivers from each person owning a building unit or building permitted for construction within three hundred fifty (350) feet of the proposed oil and gas location is submitted as part of the Form 2, and that the proposed location complies with all other safety requirements of the rules and regulations. (7) Fencing requirements.At the time of initial installation, if a wellsite falls within a high density area, all pumps, pits, wellheads and production facilities shall be adequately fenced to restrict access by unauthorized persons. For security purposes, all such facilities and equipment used in the operation of a completed well shall be surrounded by a fence six (6) feet in height, constructed in conformance with local written standards as long as the material is non- combustible and allows for adequate ventilation, and the gate(s)shall be locked, (8) Control of fire hazards. Any material not in use that might constitute a fire hazard shall be removed a minimum of twenty-five (25) feet from the wellhead, tanks and separator.Any electrical equipment installations inside the bermed area shall • 600-3 As of April 1,2009 • comply with API RP 500 classifications and comply with the current national electrical code as adopted by the State of Colorado. (9) Loadllnes. In high density areas, all loadlines shall be bullplugged or capped. (10) Removal of surface trash. All surface trash, debris, scrap or discarded material connected with the operations of the property shall be removed from the premises or disposed of in a legal manner. (11) Guy line anchors. All guy line anchors left buried for future use shall be identified by a marker of bright color not less than four (4) feet in height and not greater than one (1)foot east of the guy line anchor. (12) Berm construction. Berms or other secondary containment devices in high density areas shall be constructed around crude oil, condensate, and produced water storage tanks and shall enclose an area sufficient to contain and provide secondary containment for one-hundred fifty percent(150%) of the largest single tank. Berms or other secondary containment devices shall be sufficiently impervious to contain any spilled or released material. No more than two (2) crude oil or condensate storage tanks shall be located within a single berm. All berms and containment devices shall be inspected at regular intervals and maintained in good condition. No potential Ignition sources shall be installed inside the secondary containment area unless the containment area encloses a fired vessel. Refer to American Petroleum Institute Recommended Practices, API RP -D16. (13) Tank specifications. All newly installed or replaced crude oil and condensate • storage tanks In high density areas shall be designed, constructed, and maintained in accordance with National Fire Protection Association (NFPA)Code 30 (2008 version). The operator shall maintain written records verifying proper design, construction, and maintenance, and shall make these records available for inspection by the Director. Only the 2008 version of NFPA Code 30 applies to this rule. This rule does not include later amendments to, or editions of, the NFPA Code 30. NFPA Code 30 may be examined at any state publication depository library. Upon request, the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado 80203, will provide information about the publisher and the citation to the material. (14) Access roads. If a wellsite falls within a high density area at the time of construction, all leasehold roads shall be constructed to accommodate local emergency vehicle access requirements, and shall be maintained in a reasonable condition. (15) Well site cleared. Within ninety (90) days after a well is plugged and abandoned, the well site shall be cleared of all non-essential equipment, trash, and debris. For good cause shown, an extension of time may be granted by the Director. (16) Identification of plugged and abandoned wells in high density areas. The operator shall identify the location of the wellbore with a permanent monument as specified in Rule 319.a.(5). The operator shall also inscribe or Imbed the well number and date of plugging upon the permanent monument. (17) Development from existing well pads.Where possible, operators shall provide for the development of multiple reservoirs by drilling on existing pads or by multiple completions or commingling in existing wellbores (see Rule 322), If any operator • 600-4 As of April 1,2009 • • • asserts it is not possible to comply with, or requests relief from, this requirement, the matter shall be set for hearing by the Commission and relief granted as appropriate. f. Statewide rig floor safety valve requirements. When drilling or well servicing operations are in progress on a well where there is any indication the well will flow hydrocarbons, either through prior records or present conditions, there shall be on the rig floor a safety valve with connections suitable for use with each size and type of tool joint or coupling being used on the job. g. Statewide static charge requirements. Rig substructure, derrick, or mast shall be designed and operated to prevent accumulation of static charge. h. Statewide well servicing pressure check requirements. Prior to initiating well servicing operations, the well shall be checked for pressure and steps taken to remove pressure or operate safely under pressure before commencing operations. i. Statewide well control equipment and other safety requirements. Well control equipment and other safety requirements are: (1) When there is any indication that a well will flow, either through prior records, present well conditions, or the planned well work, blowout prevention equipment shall be installed in accordance with Rule 317 or any special orders of the Commission. (2) Blowout prevention equipment when required by Rule 317 shall be in accordance with API RP 53: Recommended Practices for Blowout Prevention Equipment Systems, or amendments thereto. • (3) While in service, blowout prevention equipment shall be inspected daily and a preventer operating test shall be performed on each round trip, but not more than once every twenty-four (24) hour period. Notation of operating tests shall be made on the daily report. (4) All pipe fittings, valves and unions placed on or connected with blowout prevention equipment, well casing, casinghead, drill pipe, or tubing shall have a working pressure rating suitable for the maximum anticipated surface pressure and shall be in good working condition as per generally accepted industry standards. (5) Blowout prevention equipment shall contain pipe rams that enable closure on the pipe being used. The choke line(s) and kill line(s) shall be anchored, tied or otherwise secured to prevent whipping resulting from pressure surges. (6) Pressure testing of the casing string and each component of the blowout prevention equipment, if blowout prevention equipment is required, shall be conducted prior to drilling out any string of casing except conductor pipe. The minimum test pressure shall be five hundred (500) psi, and shall hold for fifteen (15) minutes without pressure loss in order for the casing string to be considered serviceable. Upon demand the operator shall provide to the Commission the pressure test evidence. Drilling operations shall not proceed until blowout prevention equipment is tested and found to be serviceable. (7) If the blind rams are closed for any purpose except operational testing, the valves on the choke lines or relief lines below the blind rams should be opened prior to opening the rams to bleed off any pressure. • 600-5 As of April 1,2009 • • • (8) All rig employees shall have adequate understanding of and be able to operate the blowout prevention equipment system. New employees shall be trained in the operation of blowout prevention systems as soon as practicable to do so. (9) Drilling contractors shall place a sign or marker at the point of intersection of the public road and rig access road. (10) The number of the public road to be used in accessing the rig along with all necessary emergency numbers shall be posted in a conspicuous place on the drilling rig. j. Statewide equipment,weeds, waste, and trash requirements.All locations, including wells and surface production facilities, shall be kept free of the following: equipment, vehicles, and supplies not necessary for use on that lease; weeds; rubbish, and other waste material. The burning or burial of such material on the premises shall be performed in accordance with applicable local, state, or federal solid waste disposal regulations and in accordance with the 900-Series Rules. In addition, material may be burned or buried on the premises only with the prior written consent of the surface owner. k. Statewide equipment anchoring requirements.All equipment at drilling and production sites in geological hazard and floodplain areas shall be anchored to the extent necessary to resist flotation, collapse, lateral movement, or subsidence. 604. OIL AND GAS FACILITIES. a. Crude Oil and Condensate Tanks. • (1) Atmospheric tanks used for crude oil storage shall be built in accordance with the following standards as applicable: A. Underwriters Laboratories, Inc., No. UL-142, "Standard for Steel above ground Tanks for Flammable and Combustible Liquids"; B. American Petroleum Institute Standard No. 650, "Welded Steel Tanks for Oil Storage"; C. American Petroleum Institute Standard No. 12B, "Bolted Tanks for Storage of Production Liquids"; D. American Petroleum Institute Standard No. 12D, "Field Welded Tanks for Storage of Production Liquids";or E. American Petroleum Institute Standard No. 12F, "Shop Welded Tanks for Storage of Production Liquids". (2) Tanks shall be located at least two (2) diameters or three hundred fifty (350) feet, whichever is smaller, from the boundary of the property on which it is built. Where the property line is a public way the tanks shall be two thirds (2/3) of the diameter from the nearest side of the public way or easement. A. Tanks less than three thousand (3,000) barrels capacity shall be located at least three (3)feet apart. B. Tanks three thousand (3,000) or more barrels capacity shall be located at least one-sixth (1/6) the sum of the diameters apart. When the diameter • 800-6 As of April 1,2009 • • • of one tank is less than one-half(1/2) the diameter of the adjacent tank, the tanks shall be located at least one-half (1/2) the diameter of the smaller tank apart. (3) At the time of installation, tanks shall be a minimum of two hundred (200) feet from any building unit. (4) Berms or other secondary containment devices shall be constructed around crude oil, condensate, and produced water tanks to provide secondary containment for the largest single tank and sufficient freeboard to contain precipitation. Berms and secondary containment devices and all containment areas shall be sufficiently impervious to contain any spilled or released material. Berms and secondary containment devices shall be inspected at regular intervals and maintained in good condition. No potential ignition sources shall be installed inside the secondary containment area unless the containment area encloses a fired vessel. (5) Tanks shall be a minimum of seventy-five (75) feet from a fired vessel or heater- treater. (6) Tanks shall be a minimum of fifty (50) feet from a separator, well test unit, or other non-fired equipment. (7) Tanks shall be a minimum of seventy-five(75)feet from a compressor with a rating of 200 horsepower, or more. (8) Tanks shall be a minimum of seventy-five(75)feet from a wellhead. • (9) Gauge hatches on atmospheric tanks used for crude oil storage shall be closed at all times when not in use. (10) Vent lines from individual tanks shall be joined and ultimate discharge shall be directed away from the loading racks and fired vessels in accord with API RP 12R-1. (11) During hot oil treatments on tanks containing thirty-five (35) degree or higher API gravity oil, hot oll units shall be located a minimum of one hundred (100) feet from any tank being serviced. (12) Labeling of tanks. All tanks and containers shall be labeled in accordance with Rule 210.d. b. Fired Vessel, Heater-Treater. (1) Fired vessels (FV) including heater-treaters (HT) shall be minimum of fifty (50) feet from separators or well test units. (2) FV-HT shall be a minimum of fifty (50) feet from a lease automatic custody transfer unit(LACT). (3) FV-HT shall be a minimum of forty (40)feet from a pump. (4) FV-HT shall be a minimum of seventy-five (75)feet from a well. • 600-7 As of April 1,2009 • • • (5) At the time of installation, fired vessels and heater treaters shall be a minimum of two hundred (200) feet from residences, building units, or well defined normally occupied outside areas. (6) Vents on pressure safety devices shall terminate in a manner so as not to endanger the public or adjoining facilities.They shall be designed so as to be clear and free of debris and water at all times. (7) All stacks, vents, or other openings shall be equipped with screens or other appropriate equipment to prevent entry by wildlife, including migratory birds. c. Special Equipment. Under unusual circumstances special equipment may be required to protect public safety. The Director shall determine If such equipment should be employed to protect public safety and if so, require the operator to employ same. If the operator or the affected party does not concur with the action taken, the Director shall bring the matter before the Commission at public hearing. (1) All wells located within one hundred fifty (150) feet of a residence(s), normally occupied building units, or well defined normally occupied outside area(s), shall be equipped with an automatic control valve that will shut the well in when a sudden change of pressure, either a rise or drop, occurs. Automatic control valves shall be designed so they fall safe. (2) Pressure control valves required in (a) shall be activated by a secondary gas source supply, and shall be inspected at least every three (3) months to assure they are in good working order and the secondary gas supply has volume and pressure sufficient to activate the control valve. • (3) All pumps, pits, and producing facilities shall be adequately fenced to prevent access by unauthorized persons when the producing site or equipment is easily accessible to the public and poses a physical or health hazard. (4) Sign(s) shall be posted at the boundary of the producing site where access exists, identifying the operator, lease name, location, and listing a phone number, including area code, where the operator may be reached at all times unless emergency numbers have been furnished to the county commission or its designee. d. Mechanical Conditions. All valves, pipes and fittings shall be securely fastened, inspected at regular intervals, and maintained in good mechanical condition. e, Buried or partially buried tanks, vessels, or structures. Buried or partially buried tanks, vessels, or structures used for storage of E&P waste shall be properly designed, constructed, installed, and operated in a manner to contain materials safely. Such vessels shall be tested for leaks after installation and maintained, repaired, or replaced to prevent spills or releases of E&P waste. f. Produced water pits,special use and buried or partially burled vessels,or structures. At the time of initial construction, pits shall be located not less than two hundred (200) feet from any building unit. 605. RESERVED • 600-8 As of April 1,2009 • 606A. FIRE PREVENTION AND PROTECTION a. Gasoline-fueled engines shall be shut down during fueling operations if the fuel tank is an integral part of the engine. b. Handling, connecting and transfer operations involving liquefied petroleum gas (LPG) shall conform to the requirements of the State Oil Inspector. c. Flammable liquids storage areas within any building or shed shall: (1) be adequately vented to the outside air; (2) have two (2) unobstructed exits leading from the building in different directions if the building is in excess of five hundred (500) square feet. (3) be maintained with due regard to fire potential with respect to housekeeping and materials storage; (4) be identified as a hazard and appropriate warning signs posted; d. Flammable liquids shall not be stored within fifty (50)feet of the wellbore, except for the fuel in the tanks of operating equipment or supply for injection pumps. Where terrain and location configuration do not permit maintaining this distance, equivalent safety measures should be taken. e. Liquefied petroleum gas (LPG) tanks larger than two hundred fifty (250) gallons and used for heating purposes, shall be placed as far as practical from and parallel to the adjacent • side of the rig or wellbore as terrain and location configuration permit. Installation shall be consistent with provisions of NFPA 58, "Standards for the Storage and Handling of Liquid Petroleum Gases". f. Smoking shall be prohibited at or in the vicinity of operations which constitute a fire hazard and such locations shall be conspicuously posted with a sign, "No Smoking or Open Flame". Matches and all smoking equipment may not be carried into"No Smoking"areas. g. No source of ignition shall be permitted in an area where smoking has been prohibited unless it is first determined to be safe to do so by the supervisor in charge or his designated representative. h. Open fires, transformers, or other sources of ignition shall be permitted only in designated areas located at a safe distance from the wellhead or flammable liquid storage areas. i. Only approved heaters for Class I Division 2 areas, as designated by API RB 500B, shall be permitted on or near the rig floor. The safety features of these heaters shall not be altered. j. Combustible materials such as oily rags and waste shall be stored in covered metal containers. k. Material used for cleaning shall have a flash point of not less than one hundred (100° F) degrees Fahrenheit. For limited special purposes, a lower flash point cleaner may be used when it is specifically required and should be handled with extreme care. I. Firefighting equipment shall not be tampered with and shall not be removed for other than fire protection and firefighting purposes and services. A firefighting water system may be used for wash down and other utility purposes so long as its firefighting capability is not • 600-9 As of April 1,2009 • • • compromised. After use, water systems must be properly drained or properly protected from freezing. m. An adequate amount of fire extinguishers and other firefighting equipment shall be suitably located, readily accessible, and plainly labeled as to their type and method of operation. n. Fire protection equipment shall be periodically inspected and maintained in good operating condition at all times. o. Firefighting equipment shall be readily available near all welding operations. When welding, cutting or other hot work is performed in locations where other than a minor fire might develop, a person shall be designated as a fire watch. The area surrounding the work shall be inspected at least one(1) hour after the hot work is completed. p. Portable fire extinguishers shall be tagged showing the date of last inspection, maintenance or recharge. Inspection and maintenance procedures shall comply with the latest edition of the National Fire Protection Association's publication NFPA 10. q. Personnel shall be familiarized with the location of fire control equipment such as drilling fluid guns, water hoses and fire extinguishers and trained in the use of such equipment. They shall also be familiar with the procedure for requesting emergency assistance as terrain and location configuration permit. Installation shall be consistent with provisions of NFPA 58, "Standards for the Storage and Handling of Liquefied Petroleum Gases". 6068. AIR AND GAS DRILLING a. Drilling compressors (air or gas) shall be located at least one hundred twenty five (125) feet • from the welibore and in a direction away from the air or gas discharge line. b. The air or gas discharge line shall be laid in as nearly a straight line as possible from the wellbore and be a minimum of one hundred fifty (150) feet in length. The line shall be securely anchored. c. A pilot flame shall be maintained at the end of the air or gas discharge line at all times when air, gas, mist drilling, or well testing is in progress. d. All combustible material shall be kept at least one hundred (100) feet away from the air and gas discharge line and burn pit. e. The air line from the compressors to the standpipe shall be of adequate strength to withstand at least the maximum discharge pressure of the compressors used, and shall be checked daily for any evidence of damage or weakness. f. Smoking shall not be allowed within seventy-five (75)feet of the air and gas discharge line and burn pit. g. All operations associated with the drilling, completion or production of a well shall be subject to the Colorado Air Quality Control Act, 25-7-101, C.R.S. 607. HYDROGEN SULFIDE GAS a. When well servicing operations take place in zones known to contain at or above one hundred (100) ppm hydrogen sulfide gas, as measured in the gas stream,the operator shall file a hydrogen sulfide drilling operations plan (United States Department of the Interior, Bureau of Land Management, Onshore Order No. 6, November 23, 1990). • 600-10 As of April 1,2009 b. When proposing to drill a well in areas where hydrogen sulfide gas in excess of one hundred (100) ppm can reasonably be expected to be encountered, the operator shall submit as part of the Form 2, Application-for-Permit-to-Drill, a hydrogen sulfide drilling operations plan (United States Department of the Interior, Bureau of Land Management, Onshore Order No. 6, November 23, 1990). c. Any gas analysis indicating the presence of hydrogen sulfide gas shall be reported to the Commission and the local governmental designee. 608. COALBED METHANE WELLS a. Assessment and monitoring of plugged and abandoned wells within one-quarter (1/4) mile of proposed coalbed methane(CBM)well. (1) Based upon examination of the Commission and other publicly available records, operators shall identify all plugged and abandoned (P&A) wells located within one-quarter(1/4) mile of a proposed coalbed methane (CBM)well. The operator shall assess the risk of leaking gas or water to the ground surface or into subsurface water resources, taking into account plugging and cementing procedures described in any recompletion or P&A report filed with the Commission. The operator shall notify the Director of the results of the assessment of the plugging and cementing procedures. The Director shall review the assessment and take appropriate action to pursue further investigation and remediation if warranted and in accordance with Colorado Revised Statute 34- 60-124(4)(A). (2) Operators shall use reasonable good faith efforts to obtain access to all P&A wells identified under Rule 608.a.(1) above to conduct a soil gas survey at all P&A • wells located within one-quarter (1/4) mile of a proposed CBM well prior to production from the proposed CBM well and again one (1) year and thereafter every three (3) years after production has commenced. Operators shall submit the results of the soil gas survey to the Director within three (3) months of conducting the survey or advise the Director that access to the P&A wells could not be obtained. b. Water well sampling. (1) If a conventional gas well or P&A well exists within one-quarter (1/4) mile of a proposed CBM well, then the two (2) closest water wells within a one-half (1/2) mile radius of the conventional gas well or the P&A well shall be sampled ("Water Quality Testing Wells"). If possible, the water wells selected should be on opposite sides of the conventional gas well or the P&A well not exceeding a one- half (1/2) mile radius. If water wells on opposite sides of the conventional gas well or the P&A well cannot be identified, then the two (2) closest wells within a one-half (1/2) mile radius of the conventional gas well or the P&A well shall be sampled. If two (2) or more conventional wells or P&A wells are located within one-quarter (1/4) mile of the proposed CBM well, then the conventional well or the P&A well closest to a proposed CBM well shall be used for selecting water wells for sampling. If there are no conventional gas wells or P&A wells located within a one-quarter (1/4) mile radius of the proposed CBM well, then the selected water wells shall be within one-quarter (1/4) mile of the proposed CBM well. In areas where two (2) or more water wells exist within one-quarter (1/4) mile of the proposed CBM well, then the two (2) closest water wells shall be sampled. If possible, the water wells selected should be on opposite sides of the proposed CBM well. If water • 800-11 As of April 1.2009 • wells on opposite sides of the proposed CBM well cannot be identified, then the two (2) closest wells within one-quarter(1/4) mile radius shall be sampled. If two (2) water wells do not exist within a one-quarter(1/4) mile radius, then the closest single water well within either a one-quarter (1/4) mile radius or within a one-half (1/2)mile radius shall be selected. If no water well is located within a one-quarter(1/4) mile radius area as described above or if access is denied, then a water well within one-half (1/2) mile of the proposed CBM well shall be selected. If no water wells meet the foregoing criteria, then sampling shall not be required. If the Commission has already acquired data on a water well within one-quarter (1/4) mile of the conventional well or the P&A well, but it is not the closest water well, then it shall be given preference in selecting a water well to be tested. (2) The "initial baseline testing` described in this section shall include all major cations and anions, total dissolved solids (TDS), iron, manganese, selenium, nitrates and nitrites, dissolved methane, field pH, sodium adsorption ration (SAR), presence of bacteria (iron related, sulfate reducing, slime, and coliform), and specific conductance, Hydrogen sulfide shall also be measured using a field test method. Field observations such as odor, water color, sediment, bubbles, and effervescence shall also be included. The location of the water well shall be surveyed in accordance with Rule 215. (3) If free gas or a dissolved methane concentration level greater than two(2) milligrams per liter (mg/I) is detected in a water well, gas compositional analysis and stable isotope analysis of the methane (carbon and deuterium) shall be performed to determine gas type. If the test results indicate biogenic gas, no further isotopic • testing shall be done. If the test results indicate thermogenic or a mixture of thermogenic and biogenic gas, then the operator shall submit to the Director an action plan to determine the source of the gas. If the methane concentration increases by more than five (5) mg/1 between sampling periods, or increases to more than ten (10) mg/I, the operator shall notify the Director and the owner of the water well immediately. (4) Operators shall make a good faith effort to conduct initial baseline testing of the selected water wells prior to the drilling of the proposed CBM well; however, not conducting baseline testing because access to water wells cannot be obtained shall not be grounds for denial of an Application for Permit-to-Drill, Form 2.Within one(1) year after completion of the proposed CBM well, a"post-completion" test shall be performed for the same analytical parameters listed above and repeated three (3) and six (6) years thereafter or in accordance with the requirements of field rules developed pursuant to Rule 608.f. If the methane concentration increases by more than five (5) mg/I between sampling periods or increases to more than ten (10) mg/I, the operator shall prepare an action plan to determine the source of the gas and notify the Director and the water well owner immediately. If no significant changes from the baseline have been identified after the third test (i.e. the six-year test), no further testing shall be required. Additional "post-completion° test(s) may be required if changes in water quality are identified during follow-up testing. The Director may require further water well sampling at any time in response to complaints from water well owners. (5) Copies of all test results described above shall be provided to the Commission and the water well owner within three (3) months of collecting the samples. The analytical data and surveyed well locations shall also be submitted to the Director in an electronic data deliverable format. • 600-12 As of April 1,2009 • • • c. Coal outcrop and coal mine monitoring. (1) If the CBM well is within two (2) miles of the outcrop of the stratigraphic contact between the coal-bearing formation and the underlying formation, or within two (2) miles of an active, inactive, or abandoned coal mine, the operator shall make a good faith effort to obtain the access necessary to survey the outcrop or mine prior to drilling the CBM well to determine whether there are gas seeps and springs or water seeps that discharge from the coal-bearing formation in the area. (2) If a gas seep is identified during the survey, then its location and areal extent shall be surveyed in accordance with Rule 215 and the concentration of the soil gas shall be determined. If possible, a sample of gas shall be collected from the seep for compositional analysis and stable isotope analysis of the methane (carbon and deuterium). Thereafter, the operator will inspect the gas seep, survey its areal extent, and measure soil gas concentrations annually, if access can be obtained. The operator shall submit the results of the outcrop or mine monitoring to the Commission and the landowner within three (3) months of its completion of the field work. The analytical data shall also be submitted to the Director in an electronic data deliverable format. (3) If a gas seep is identified during the survey, the Director shall advise the landowners, local government, Colorado Geological Survey (CGS), and the Colorado Division of Reclamation, Mining, and Safety (DRMS), as appropriate, of the findings. In collaboration with state, local, and private interests, the CGS, DRMS, and the Commission may elect to develop a geologic hazard survey and determine whether the area should be recommended to be designated as a geologic hazard in accordance with Colorado Revised Statute 34-1-103 and 24.65.1-103.• (4) If the CBM well is within two (2) miles of the outcrop of the stratigraphic contact between the coal-bearing formation and the underlying formation, the operator shall survey the outcrop, review publicly available geologic and hydrogeologic data, and interview landowners to identify springs or water seeps that discharge from the coal-bearing formation. If such a water feature is identified, then the operator shall survey its location and areal extent in accordance with Rule 215, measure the flow rate, photograph the feature, and collect and analyze a water sample in accordance with Rule 608.b.(2). Thereafter, the operator will inspect, survey the areal extent of, and measure the flow rate of the spring or water seep annually, if access can be obtained. The operator shall submit the results of the spring or water seep monitoring to the Commission and the landowner within three (3) months of its completion of the field work. The analytical data shall also be submitted to the Director in an electronic data deliverable format. d. Prior to producing - static bottom-hole pressure survey. Prior to producing the well, the operator shall obtain a static bottom-hole pressure test on at least the first well drilled on a government quarter (1/4) section. The survey shall be conducted by either a direct static bottom-hole pressure measurement or by a static fluid level measurement. The data acquired by the operator and a description of the procedures used to gather the data shall be reported on a Bottom Hole Pressure, Form 13, and submitted with the Completed Interval Report, Form 5A, filed with the Director. After reviewing the quality of the static bottom-hole pressure data and the adequacy of the geographic distribution of the data, or at the request of the operator, the Director may vary the number of wells subject to the static bottom-hole pressure survey requirement. If an application for • 600-13 As of April 1,2009 increased well density or down spacing is filed with the Commission, then additional testing may be required. e. Bradenhead testing. Upon completion of any well, and on wells presently completed, the operator shall equip the bradenhead access to the annulus between the production and surface casing, as well as any intermediate casing, with approved fittings to allow safe and convenient determination of pressure and fluid flow. This rule shall apply to all wells, regardless of function, completed for CBM production or below the coal-bearing formation. All wells capable of production, injection, or observation shall be tested by the operator for pressure and flow, with results submitted to the Director on a bradenhead test report, Form 17, and to other applicable regulatory agencies. Bradenhead tests shall be performed on all wells on a biennial basis. Remedial requirements shall be determined by the appropriate regulatory agency. The bradenhead testing requirement shall not apply if the operator demonstrates to the satisfaction of the Director annular cement coverage greater than fifty (50) feet above the base of surface casing and zonal isolation is confirmed by reliable evidence such as a cement bond log or cementing ticket indicating that the height of cement coverage is fifty (50) feet above the base of the surface casing, and zonal isolation is confirmed by two consecutive bradenhead tests preceded by a minimum shut-in period of seven (7)days each. f. Locally specific field orders. The provisions of this Rule 608 may, with the Director's approval, be modified or superseded on a basin, region, or county specific basis by field orders developed by the Commission in consultation with affected parties, including operators, county governments, and other state or local agencies,taking into account the goals of the 600-Series Rules and particular local geologic and operational conditions. In addition, the operator or other affected party shall have the right to file an application with the Commission to develop field orders for the basin, region, or county that modify the • Rule 608 requirements as provided herein, which application shall set forth an explanation of good cause for the development of such orders. • 600-14 As of April 1,2009 • • • E&P WASTE MANAGEMENT 901. INTRODUCTION a. General. The rules and regulations of this series establish the permitting, construction, operating and closure requirements for pits, methods of E&P waste management, procedures for spill/release response and reporting, and sampling and analysis for remediation activities. The 900 Series rules are applicable only to E&P waste, as defined in § 34-60-103(4.5), C.R.S., or other solid waste where the Colorado Department Of Public Health And Environment has allowed remediation and oversight by the Commission. b. COGCC reporting forms. The reporting required by the rules and regulations of this series shall be made on forms provided by the Director. Alternate forms may be used where equivalent information is supplied and the format has been approved by the Director. c. Additional requirements. Whenever the Director has reasonable cause to believe that an operator, in the conduct of any oil or gas operation, is performing any act or practice which threatens to cause or causes a violation of Table 910-1 and with consideration of water quality standards or classifications established by the Water Quality Control Commission ("WQCC" ) for waters of the state, the Director may Impose additional requirements, including but not limited to, sensitive area determination, sampling and analysis, remediation, monitoring, permitting and the establishment of points of compliance. Any action taken pursuant to this Rule shall comply with the provisions of Rules 324A. through D. and the 500 Series rules. • d. Alternative compliance methods. Operators may propose for prior approval by the Director alternative methods for determining the extent of contamination, sampling and analysis, or alternative cleanup goals using points of compliance. e. Sensitive area determination.When the operator or Director has data that indicate an impact or threat of impact to ground water or surface water, the Director may require the operator to make a sensitive area determination and that determination shall be subject to the Director's approval. The sensitive area determination shall be made using appropriate geologic and hydrogeologic data to evaluate the potential for impact to ground water and surface water, such as appropriate percolation tests that demonstrate that seepage will not reach underlying ground water or waters of the State and impact current or future uses of these waters. Operators shall submit data evaluated and analysis used in the determination to the Director. f. Sensitive area operations. Operations in sensitive areas shall incorporate adequate measures and controls to prevent significant adverse environmental impacts and ensure compliance with the concentration levels in Table 910-1, with consideration to WQCC standards and classifications. 902. PITS-GENERAL AND SPECIAL RULES a. Pits used for exploration and production of oil and gas shall be constructed and operated to protect public health, safety, and welfare and the environment, including soil, waters of the state, and wildlife, from significant adverse environmental, public health, or welfare impacts from E&P waste, except as permitted by applicable laws and regulations. b. Pits shall be constructed, monitored, and operated to provide for a minimum of two (2) feet of freeboard at all times between the top of the pit wall at its point of lowest elevation and • 900-1 As of April 1,2009 • • • the fluid level of the pit. A method of monitoring and maintaining freeboard shall be employed. Any unauthorized release of fluids from a pit shall be subject to the reporting requirements of Rule 906. c. Any accumulation of oil or condensate in a pit shall be removed within twenty-four (24) hours of discovery, Operators shall use skimming, steam cleaning of exposed liners, or other safe and legal methods as necessary to maintain pits in clean condition and to control hydrocarbon odors, Only de minimis amounts of hydrocarbons may be present unless the pit is specifically permitted for oil or condensate recovery or disposal use. A Form 15 pit permit may be revoked by the Director and the Director may require that the pit be closed if an operator repeatedly allows more than de minimis amounts of oil or condensate to accumulate in a pit. This requirement is not applicable to properly permitted and properly fenced, lined, and netted skim pits that are designed, constructed, and operated to prevent impacts to wildlife, including migratory birds. d. Where necessary to protect public health, safety and welfare or to prevent significant adverse environmental impacts resulting from access to a pit by wildlife, migratory birds, domestic animals, or members of the general public, operators shall install appropriate netting or fencing. e. Pits used for a period of no more than three (3) years, or more than three (3) years if the Director has issued a variance, for storage, recycling, reuse, treatment, or disposal of E&P waste or fresh water, as applicable, may be permitted in accordance with Rule 903 to service multiple wells, subject to Director approval. f. Unlined pits shall not be constructed on fill material. • g. Except as allowed under Rule 9042, unlined pits shall not be constructed in areas where pathways for communication with ground water or surface water are likely to exist. h. Produced water shall be treated in accordance with Rule 907 before being placed in a production pit. i. Operators shall utilize appropriate biocide treatments to control bacterial growth and related odors as needed. 903. PIT PERMITTING/REPORTING REQUIREMENTS a. An Earthen Pit Report/Permit, Form 15, shall be submitted to the Director for prior approval for the following pits: (1) All production pits. (2) Special purpose pits except those reported under Rule 903.b.(1) or Rule 903.b.(2). (3) Drilling pits designed for use with fluids containing hydrocarbon concentrations exceeding 10,000 ppm TPH or chloride concentrations at total well depth exceeding 15,000 ppm. (4) Multi-well pits containing produced water, drilling fluids, or completion fluids that will be recycled or reused, except where reuse consists only of moving drilling fluids from one (1) oil and gas location to another such location for reuse there. b. An Earthen Pit Report/Permit, Form 15, shall be submitted within thirty (30) calendar days after construction for the following: • 900-2 As of April 1,2009 Emergency Response&Fire Protection • signage at the facility. The information will contain the following language: "FLAMMABLE-KEEP FIRE AND FLAME AWAY". Tanks shall bear the additional marking: "KEEP 50' FEET FROM BUILDINGS;" • Location signs will be posted and maintained identifying the wells, KMG as the operator, emergency contact telephone members,and directions to the facility; • All valves, pipes, and fittings will be securely fastened and inspected at regular intervals to ensure they are maintained in good working order; • Smoking will be prohibited in the vicinity of any fire hazard and signs will be posted to state "No Smoking or Open Flame"; • No source of ignition will be pennitted within the "No Smoking" area unless it is determined by Environmental Affairs safe to do so; • Adequate fire extinguishers will be carried in every field vehicle, plainly labeled as to their type and method of operation, and field personnel will be trained in their use; and, • Fire protection equipment will be inspected regularly and maintained in good working order, in accordance with NFPA 10 requirements. 7.2.8 Material Safety Data Sheets (MSDS) Material Safety Data Sheets (MSDS) for hazardous materials used during the drilling, completion, and production processes are available upon request. This includes crude oil and hydrocarbon condensate stored in the ASTs. Please contact Terry Clark, Safety Advisor at 720-929-6597 or Joe Freeman, Safety& Health Manager at 720-929-6534 for copies of the MSDS. • • 7-7 Barron Wells T3N-R66W-18: NW/4SE/4 Town of Platteville, Weld County, Colorado Attachment 2 - Aerial Photograph with Wellsite Location and Access • ill Carma Wells T3N-R68W-36: N//2 Weld County, Colorado • • ttI ',`, I<UAI/ i M i E WCK 28 Y ') C'VR'lV1.8:160, r . . t z** .t,a, a m' 4„ '.1.' r`•• °t (•.ARM-% k-%O. rte ti. -- c Ni( „\I 211-,i6 V l� ; jy =u K,. L . j y } •AI +r a f ti • a CA.'.' . =kJ ' • • • vW, • • i • 0 • • `', Access Road + - KMG Gathering Line " 7,/ iti+t i₹' 'Ge�' Duke Pipeline —.---.-- RGSI Pipeline Proposed Flowline Photo • Legal Drilling Wind ow See. 36-T3N-R68W Exist Battery Location Weld County, CO , New Battery Location Q Proposed Wellhead Author: Edited By: Last Edited: 0 Bottomhole Location Teddy Ruampant Dave Haertel 12/16/2009 • File contains CD with digital version of Application materials • See Original in File • Hello