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Home My WebLink About20082554.tiff • • Property Ownership 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 Lease described below. A copy of the Oil and Gas Lease is attached hereto. LEASE Lessor: J. P. Camenisch and Mary M. Camenisch Lessee: Pan American Petroleum Corporation Date: February 16, 1971 Lands: Township 2 North, Range 68 West, 6'h P.M. Section 10: E/2NW/4 (East-half of Northwest-quarter) Weld County, Colorado Recorded: Book 640, Reception No. 1562238 • EXHIBIT 1 7 • 2008-2554 Milky Way 3-10, 18-10 and 21-10 Wells 5-1 T2N-R68W-10: NE/4NW/4 Weld County, Colorado Q - t 640 R.e.Bea a.L� -e FFB 1 6 1971 luerzrp sloduer.5$I r21)aa.ea—Colorado 15b2238 -- OIL, GAS AND IV4ERAL ZEASE— 1_-Ann Spurner,Record. THIS AGREEMENT made this 31 day of December 1L70 person :7, .P. Camenisch..and...Mary...M Camenisch Route. Nn . 4., Box...159, Longmont, Colorado • Ither one or morel.anaFan Ame.rican._Petrole.um Corporation, Security._.Life Bldg. Le LTNTSSE1'H: Denver, Colorado 310,00 1 in hand paid,of the royalties herein provided, ose of investigating,exploring. and of the agreement of Lessee herein y contained,hereby grants,,ed herein, leasesp and lets exclusively unto Lessee for the s. building tanksas,other hydrocarbons and. without �P power station.,on to such enumerated once liiines`I`nL other structures therll other minerals `reeon to produce,er Winner or dissimilar taakeecting.drilling and g those transport rtf for and producing oil,�and oven said produccts,pe and housing its employees,the following described land 1n__.._.____._Weld County.Colorado,to-wit: Township 2 North - Range 68 West Section 10: •872nW/4 (East-half of Northwest-quarter) of Section.. ltXXXXXX%X$.$XR Township XXXXXXXXXXXXXXXXXXX,Range. XXXRXXXYXXYXX. In addition to the land above deathbed. Lessor hereby grants. lease and lets exclusively unto Lessee to the same extent if specifically described herein all lands owned or claimed by Iawr which are adjacent. contiguous to or form prt of the e lands above prticularly described. in- cluding all oil.gar.other hydrocarbons yand n all other minerals nderlying ees, .streams. m ds, a to d right o(pay which traverse or adjon a Iy of oflssaid lands. anmp[Wr rentrental e payment t purposes,the land included within this lease shall bedeemed r to containwh . Q • e.. ng thereafter as oh,gas othother r hydrrocarbon`s,or otthherr mineral s produced from said lard hereundeer, or drilllinng or reworking operations"primary are and thereon. 2. The royalties to be paid by Levitt are: la)on oil.one-eighth of that produced and saved from said land.the same to be delivered at the wells,or to the credit of tenor into the pipe line to which the wells may be connected;Lessee may from time to time purchase any royalty oil In Ite possession,paying the market price therefor prevailing for the field where produced on the date of purchase: (b) on gas,Including wingheed gas or other hydrocarbon substance,produced from said land and sold or used off the premises or in the manufacture of gasoline or other products therefrom. the market value at the well of one-eighth of the gas w sold or used.provided that on gas sold at the wells the royalty shall be one-egnth of the amount that realized from sulfuruch the`royalty shallll other minerals be fifty ent,ll000)per long ton.d and Lessee shall have free u onthenth either In se of oil.gas.d or value`t thecoa, wood and water at from saidction,land. except pt water erfromp�Lesso gasr wellll,for all openness hereunder.and the royalty on oil and gas shall be computedlease shall ttniingige in o used.U a well capable ofthe paying well a abut in.Les L. see or any assignee the may theeed land reafer, in Is theshut uaner fns. period of y year from date m provided.theof 51 for the payment such payment @ ntle • alr,pay d e is l as Lsssol co nnuease shall e i oef ec b_fo or•fire yeaitram ofe nee such well Is Nut r and sum on li a ke pay per or t,and @ ,made or ornder Is befo a each anniversary of the shut.in datn e`t of such well, ter hisriod leasef one shall year. In`effect for successive periods ri of payments or 112)nders annually, nths each`de on 4. lE operationa for drilling are not commenced an said land as hereinafter provided.on or before one year from the date,the lease shall then terminate as to both parties.union on or before such onal �annniivversary date Lessee shall pay or tender to Lessor or to the credit of Lessor in and null ntinue as the.depository for all rentals payable hereunderQnn Colorado of adNnges in ownership)offsaid ch pank and its successors land or the rentals either`by`onveyan`nt ce or by thedeath or incapacity of Lessor)the sum of_Eighty....and__N0j100 Dollars II 80....00 -).(herein called rental),which shall cover the privilege of deferring mnunncement of operations for drilling for a period of twelve 112).months:In31ke m and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for assonant periods are t .ql 112)months each during the primary en.The payment or tender of rental herein reerred to may be made m currency draft or check at the option pp the Le and the depositing of ouch currency,draft or check in any post office,properlyaddressed to the Lessor.or said nefore_q` tal paying dats be deemed payment as herein provided I1 such bank(or any aurae should fall,liquidate ar he by etiothe+(HO o)or any fall o[efuse to aeept enter Lessee shall not be hemp default for f:nme to make ouch reymntNr tender o r ill thirty(Ill Oa after Levee Well deliver to Lessee a proper recordable irutrumen eoing another bank as agent to roe such pay- ae[a The do-an ink payment t e to Lessor on for this lease ry above ng to its term.and shall of e allocated as mere rental for a period. L icy at nY L+ae executsnd deliver b Lessor or to the depository e named or place of record a a lee`are eta`E`acovering l v iii gtioru portion or portion,of te above described premises and thereby(amender td portion n acreage.umndred.•end.there,fter the retals payable erender shall be reduced r In th proportion that the acreage covered hereby I.reduced by said he eease or releaser.J _ orateg ttoLessee's-,(hell, or torn uwrental whw prior make o ouchfatte ptedpaymenit or r deposit.`hastgivenLessee Lessor ientitled ti:`corda`nce with the tder fe`erms off this lease herei afer et,forth`of his right to receive rental.and if such payment or deposit shall be erroneous In any regard(whether deposited in the depository.paid b other than the parties entitled thereto shown by Lessee'. record..or in an incorrect amount. therxisel. Lessee wrong • 11 besame manner ane as Iflssuch obligated rental payment en o:postnn d beepnrpropo pi m e,vpovi rental that thInvolved. erns erroneous but rental lease or be ttabbem in - recte within a0 days after receipt by Lessee of written wr notice from such Lessor of such error accompanied by any documents and other evidence neces- sary to enable Lessee to make proper payment 5. Should any well drilled on the above described end during the primly term before production is obtained be a dry hole,or should production be obtained during the primary term and thereafter cease.then and In either event.if operations for drilling an additional well are not commenced or operation.for reworking an old well are not pursued on sald land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wellterminate,then this lease shallterminatee,unless Less on or before said date.shall resume payment of rentals. Upon resumption of the payment of rental..Section.governing the payment of rneh,shall continue in force jmt as though there had been no a inter- ruption in the rental payment..If during the last year of the rimary term and prior to the discovery of oil.gas.or other hdrocarbons on said land essee should drilldry hole thereon. H after discovery of oft,gas,or other hydrocarbons before during the last year of the mary term the production thereof a ould cease during or e last year of said term from any a e[lypayment or operations are necessary a order to keep the lean in force duringthe remainder of the rimary term.U.at the expiration of`the primary imsuch .Lessee is conducting operations for drilling a or reworking old well,this lease nevertheless shall continue in force as long reworkingoperations continue. If.after the expiration of the prmary term.production on this lease shall cease.this lease nevertheless shall continue in force if drilling or reworking operation commenced within slab(6Y)days after such cessation of production:if production le restored or additional production a discovered as result of ar▪my such drilling or reworking operations,conducted without cessation of than sixty ti)) day..this lease shall continue long thereafter a '1. gas,ms otther hydrocarbons ydrong obduor for mineral I produced ce and as long)consecutive asadditional drilling or reworking operations ice had without cessation of such drill- ys. e. Levee.at its optlon.L hereby givn en the right and power to pool or combine the land covered by this lease.o y portion thereof.as to ll and gas or eiterof them. with any other land. lease or to be intolt"well whe in n Less a not exceedingemtit bis v necessary or advisable to do In order to properly premiseR such pool rtn140)acres,pies acreage tolerance of ten p cent 110%)of forty 0 (00)acres,for oil.and not exceeding six hunted and forty 16.01 aci plus an acreage tolerance of ten per cent 110R) f six `nhundred and fortyie4fli authorities for gal except that larger nits may be created to conform m y�acing or well unit pattern that y be prescribed bygovern- mentalhaving jarhmon.Lessee may pool or combine acreage covered by this lease.or any pod thhreo'ar above pro idm•combinedai r gas ny one or more strata.and units so formed need not conform m sire or area with the unit r units which or ✓ y other stratum or strata.and oil units need not cordorm as to area with gas units.The pooling inn or r instances shall not exhaust the rights of the Lessee hereunderto pool`this lease or portions thereof into other units Lessee shall execute in writing and place of record an Instrument or Instru- ments(den lying and describing Inihee pooled d,acreage. reThe entire acreage so pooled into unit shall be treated for all purposes, except the payment of it drilling r reworking operations thereon or roduction Of sit or ges therefrom,or the completion thereon of a well as a sh t-en g well.shall be Considered for all purposes, pt the pament of royalties. es if such operations were h production were from or such completion were on the land covered by this lease.whether o not the well or wells be such portion the premisvove d by this lease. In oun of the of his a lease`elsewhere hhe unit or`or hislroyalt intor erest therein bean to the totalall receive from a unit so oacreage so ed.only In then of the royalty,vi lved stipulated herein as the amounts iinally created hereunder contain less than the maximum number of acres hereinabove spcified,then Lessee particular anntme thereafter,whetheunit be fort or after production is obtained on the unit.enlarge such unit by,ridding additionalacreage thereto.but the enlarged unit shall In no event exceed the acreage content hereinabove specified.In the event existing a It a so enlarged Lessee shall execute and place of record a supplemental declara- tion of unitization identifying and describing the land added to the existing unit: provided. that if such supplemental declaration of unitization Is not flied until after production is obtained on the unit as originally created.then and in such event the supplemental declaration of unitization shall not become area effective tifiling the first day of the calendar month next following the filing thereof. In the absence of production Lea's may terminate any o un by of record notice of termination. 7.Lessee also shall have the right to unitize.pool,or combin all or any art of the above described land.with other lands in the same general l •by entering into a cooperative or unit plan of development or operation approved by any governmental authority and.from time to time, with ike approval.to modify.change termnate any such plan or agreement and.i such event.the terms,conditions,and provisions of this lease shal be deemedmodified to conform to the enms.conditionand provisions of suchapprovedcooperative or unit lan of development r operation and.par- ticularly, ll drill and development requirements of s ease.expev or ipe shl e satisfied by compliance with the drilling and development requirements of such plan oragreement,re (e andof. this lease ea a shall i hereafter terminate or expire during the life of su plan agreement. In the era nt that s ld • the production therefrom any snallocated to different portions of t operated under byysaid`plan,then producti plan alloc ated :ytparticularttractwBand thal for the purpose of computing the royalties to he pai hereunder to Lessor.be regarded as having been produced from the particular tract f land o which it is allocad and not to any other tract of land: and the royalty payments to bemade hereunder to Lessor shall be based upon produmon onlyr. allocated.Lessor shall forally express Lessor's consent to any u cooperative or unit lan of development or operation adopted by Lessee. • approved y any governmental agency bye coring upon request ofeLesee. 5.Lessee shall'have the right t any time without same mr's consent to surrender all orany portion of the leased premise.and be relieved of all obli lion m the revue surrendered.Lessee shall have the right at any durig or fer the expiration of this lease m remove a roperty placed by ac said land.Including the right to draw and remove ❑ casing. When required by Lessor. Lessee will bury all t'op'e a w ordinary plow depth,and no well shall be drilled within two hnre (2001 eet f any residence bans a said land without [ t.The Lessee eeee to Promptly pay b the owner thereof any damages m crops, or improvements. caused by or resulting Irons any onsent. Lessee. GO/6 70 90°4 640 1562238 �1 9.The rights of either party hereunder may be assigned,in hole In pert,and the provisions hereof shall extend to the heirs.sue son and f))"t2 assign.agns of the porno.hereto,but no change or division in ownership of the land rentala.or royalties,however accomplished.shall operate to enlarge the blgaattiioanns or almWN the fights of Lessee.Noe change in the owneeNlyp of the land,or any Interest therein,shalt be binding on Levee wLl Lessee shin e hf said rights invent of theanI m rat of this lease a segregated l portion of g said land,the rentals payable a hereunder ebWl benapporti noble among ownerthe several s hereunnd der.In rasa Lessee assign.this lease.according to the surface whole or In part.Lessee shall be relievedlt In of t all obligation one shall s with respect to the lease- holdassigned affect the rights of other por- tion or portion.arising subsequent to the date of assignment 10.Al express or implied covenants of this lease shall be subject to all Federal end State Law',Executive Orders.Rules or Regulations,and this lease shall not be terminated in whole or W y rt,nor Lessee held liable In damages,for failure to comply therewith,if compliance b prevented by. 1f lure la the remit of,any such Law,Order.Rule or Regulation,or if prevented by an act of God.of the public enemy.labor disputes viability to Medal,failure of transportation,or other cause beyond the control of Lessee. V If,oing the to elof aso lei e,oil am of 0eauses or et ou�[Ws Section,s or other mineral heltt nevertheless be he ladeerred aMvreducinss"aeenddshalt continue ted force and effect wtfi Lessee is permitted e produce operation.are otberhcarbons,ore herein provided 11. aes long thereafter a ch production continues In paying quantities or aNWs 11.Lessor hereby warrants end agrees to defend the title to said Mod and agrees that Lessee at its option may discharge any tax,mortgage or other ten upon id land slaw a whole or In part,and hi event Levee does so,it ao.,u be aubmgsted to such uen with die right m enforce rime and 'yylr rents al and royalties accruing hereunder toward asurtying same.Without impairment of 4evee's rl hts under the warranty In event of failure oe title n ls agreed that u Leuar owns en Interest Iv wa Iand Iw than u.entlrc fee simple estaR.then tfie roraltlea and rentals N be paid Lessor shalt be reduced proportionately. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their help, administrators, mccesann and sasgos. This agreement shall be binding on each of the above named parties who sign the same,regardless of whether It is signed by any of the other parties. IN WITNESS WHEREOF.this instrument is executed on the date first above written. WITNESSES: «. s1.c.,_N0 .......5 2/-.d9-1726 f,.. /7 SLATE OP COLORADO, 1 155. Colorado Acknowledgment County of....._-.a.Qlllder..__.___._....... The foregoing instrument was acknowledged before me this.. 31St _..._...._..._day of December . .. A.D., 1970 by.J. P. CAMENISCH and MARY Pl. CAMENISCH I . .h. Witnesk9dtgha df il e A l oral: My it— mmalis � alfu-1 i_14, 1971. �L 'O Notary Public. S OF„COLOAADO, IS. 'Colorado Acknowledgment The foregoing instrument was acknowledged before me this _ __......._..__.._._.._....day of .._.__._—...._..._ A.D., 19____._ by witness my hand and official seal: . My commission expires Notary Public. Ti 4 W `o G 5 g I. 1.1 —4 W' a r �` S o 5. . .. offs\I ILA o W m I OF t�i • C o s` co! ,1 NN rim ct 2 a m! q .1. see Z to , _ O 9c I (a9 U. n O� �e I �s > > B i o f E . . .e .,o o \VVC e e 2 A 2 y 3 . 8 eS B . row - • State of Colorado e..,a,� Oil and Gas Conservation Commission r'“ %, �2 t1Mtt°mir SYeetSarBll,Mm rColoab 20203 Phone PONM4-21m Fa1S3)M4Dm ,- APPLICATION FOR PERMIT TO: . • 1. MOTE n Deepen, n Re-enter. I-7 Reompbb and Opera* 2. TYPE OF WELL Rang X Plugging Bond Suretylotql�nec GOPIBEO❑ GTHER: Sldatndc 200101244 SINGLE zoNEI f MULTIPLE ZONES x COAIANGLE ZONES commas 3. Hama of Opener Kerr-McGee m&Gas oeharsLP 4.COGCC Operator Number. 47120 CP CO= 5. Address: 109918th Street APO Ong&f Copy Cty Denver State: CO ZW: 80202 Form 2A 6. Cooled Name: Cheryl Light Phone 720-929-6461 Fir 720-929-7461 W¢0 location plat 7. WelNere MILKY WAY Well Number: 3-10 Topo map 6. Unit Name Ofappp: UnnitNumber.. Mineral lease map 9. Proposed Total Measured Depth: 751V Surface agmeSurety WELL LOCATION INFORMATION 30 Day nonce letter 10. DOOM NENW Sec 10 Tare 2N RN: 68W Median: 6th P.M. Deviated Odin Plan tatudE N.40.15883° Longitude W.104.99214° Excepton L0caban leaea reasa Request Footage At Surface: 871' E 1796' ® Exception LocWaivas 11. Field Nana Wattenberg Feb Number. 90750 1425 Confmgency Plan It Ground Elevation: 4847' 13.Co1ny: Weld Federal Drig Pent 14. GPS Data: Date of Measurement 26-Jan-07 PROP Reedits: <6 Instrument Operators Name: Robert B.Nimrod 15. If well is: 0 Directional rl Hokans(highy devbted), sten*deviated drilling plan Bokomhoe Sec Twp Rng: Footage At Top of Rod Zaye: I I Q I I nAt Bottom Hob: ) rOI I Ism - 16. labration in ahigh density arm 0ba&l3b)? =Yes =No 17. Distance to the nearest balding,public mad,a rave groan ditty or rabbet 671' 18. Distance to Nearest Pmpety tie: 175' 14 Min is nemewl pemwvmmatted n be Sara foramen: 865' 20. LEASE,SPACING AND POOLING INFORMATION Obieste Famata{s) . Fomre(un Code F Slating Order bunter(s) UnitAoeage Assigned to Well Unit Canfigeaon(W2,SEy4,et:) Niobrara-Codel NBCD 407 80 Er2NW/4 J Sand JSND 232 320 1412 21. Mmes Oanes*p: OFee FIState nFed l Indian — Leased. 22. Sabin Oa Deter Fee State Federal Indian23. bee Surface Mrerabothe Mnera Cromer? m X No Surracesuiety BY N23'w Yo: bee Surface Osman)egeamre oaths Jesse? Yes I�No 234 If 23 Is Nes ©' - Owners AgreenentAeached or 000 Blast Surface Bond MS2.000 Surface Band I—I%,000 Surface Bond 24. Using standard IBOb,Sec,Twp.Rng beat ere-eMre mineral lease Mention upon whit the proposed welae'Is located tench separate sheetlmap if you parer): E2NW/4,Sec.10,T2N-R58W 25. Distance to Nearest Mere'Lease Lire 472' 26. Total Acres In Lease: 80.00 DRILLING PLANS AND PROCEDURES 27. b125 anticipated? n Yes f No NYes,attach cadaveric,'plan. 28. WE setsedNs be encountered dung dales? =Yes FXX'No 29. WSsaa(>15,000 ppm TOS CI)or o0 based muds be used dog dig? Yes X No 30. 0quations 27or26areyes,lends brake Ineeenaite area(Rule _de 903)? Yes X No i28,29 or30ere"Yes"a pit paring may be required 31. Mud dkpost R OMia ❑Oriels I� Men et lad Farming n Land Speeding r l Disposal Fusty n Other NOTE The use of an earthen pa forRttarpann Buts Bodies rattan*(Rule 905b.)If airfgas ddrong,nobly local Ina Odds. String She of Hole SW ofCasing Weight Per Foal SeMg Depth Sado Caren Cement Bottom CememTop Surface 12-1/4" 85/8" 245 775' 543 775' Surface Production 7-7/8" 4-1/2* 11.68 - 7511' 200 7511' Liner NA Stageitol 32 BOP EqugmeraType: n AnworPmvenM n Doubt Ram n Rotating Head I--I None 33. Comments No Conductor Casing will be used Nothing has changed since well was orginaly permitted 34. Inn]Run 306 Corasibdon took piece on(date) 04/302008 ,was waived,or is not required Provide supporting documentation if conrvaatian his been waved or If good faith effort and not result in cenaetatlorc PERMIT SUBMITTED TO COG=PR10R TO COMPLIANCE WITH RULE 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. I hereby deify theta permit package has bean sad to the applicable Local Government Designee(s),and all statements made in this form are, to the best of my*noel �y and nplete. Signed: In,w4 hi R)(�C ' Prim Name: lr Cheryl Light Tae: Regtd Ana it Date: sJ ,-.-0 Y. Email: mom eoneeaadako.ror0 Based on the mbmetian provided herein,this Apparition for Permit-to-DO orn fides with COGCC Rules and applicable orders and is hereby approved COGCC Approved: Director of COGCC Dad: Permit Number. Expiration Date: API NUMBER CONDrnONS OF APPROVAL.IF ANY: 05-123-26497 WELL LOCATION CERTIFICATE . SECTION 10 , TOWNSHIP 2 NORTH , RANGE 68 WEST , 6TH P . M . BASIS OF BEARINGS N114 SEC. 10 NW SEC. 10 N 89°46'43' E 2648.21' 3.5' AC LS 7239 3' AC LS 28666 MO I I MILKY WAY 18-101-v - LO 176 •• mi CO HSR CARLSO)V 6-10 GROUND ELEVATION = 4847' cv LAT./LONG. = N 40.15883° in - - - - - = — — — —W-#94.992#4° — N In o iIW1/4 SEC. 10 - - -I- - - r - - - - 2.5' AC LS 12374 , �,/ NOTES: THIS A VERTICAL DRILL WELL. TWINNING PROPOSED WELL MILKY WAY 18ti0 WHICH IS 30' NW. PROPOSED WELL M LKY WAY 18-10 IS 66 ' FNL & 1768' FWL, EXISTING WELL H6R CARLSON 6-10 IS 6g' SW. • EXISTING WELL F¢R CARLSON 6-10 IS 6' FNL & 1741' FWL. - SEPEAATOA ENOLOPUREIS 125'r TANK BATTERY E LOSURE IS 135' SW. I - NO OTHER VISIBLE IMPROVEMENTS WITHIN 200'. I I I I I I HEREBY STATE TO KERR-MCGEE OIL & GAS ONSHORE LP THAT THIS WELL LOCATION CERTIFICATE FOR THE WELL MILKY WAY 3.10 IS LOCATED 671' FNL & 1796' FNL, SEC. 10, T2N, R68W, 6PM. ®r:°�l cse: LEGEND NORTH ®v��OP'v�®li..0 • = FOUND MONUMENT 0 510 1000 C=C9 G.t® • = PROPOSED WELL z \ = IMPROVEMENTS 20. 15 (AS LABELED) SCALE: 1'=1000' -p,‘..,�szo-7/k.' ELEVATION SOURCE = USGSNGVD 7.195'9 QUAD DATU P CONTOURS R. DAVID RUX PLS 37045 �A[LAN®% LAT. & LONG. SHOWN ARE DIFFERENTIALLY CORRECTED (NAD '83) PETROLEUM FIELD SERVICES, LLC USING (DGPS) WITH (PDOP) VALUES LESS THAN SIX(6) THIS IS NOT A MONUMENTED BOUNDARY SURVEY IT IS ONLY A DISTANCES ARE FIELD MEASURED DRAWING INTENDED TO DEPICT THE WELL LOCATION TO SECTION LINES DISTANCES TO WELL SHOWN PERPENDICULAR FIELD DATE: PREPARED BY:1-26-07 PA TO SECTION LINESlill RING DATE: 66 WELL NAME; 27-07 pF.../ .:r-"411 / MILKY WAY 3-10 BY: / / llc LOCATION; AYE Petroleum Field Services LLC COUNTY, CO SIGNED: 215 Union Blvd. Suite 410 NW WELD CSTY, CO T2N, R68W, Lakewood, CO 80228 1/4, 6TH P.M. • • pzr mr. a .1 iii + n t" i1. o zs • \ �' I1 `` Y 3-i'' :a' y� e� it � Q N Q :lilt- Trai " _ _ s —\s.?,,,_1/4iip. ■ __ a ' 4856 t0 . _ _ lnn _ . , „. �` - ^� GI 1 N gas '1 I � fIB.isi : I . V • Olaf . 76 ice`\ • '`' ' `570_ ) , ,, DELORME CC ®,••a,,...,00.ft XMN w sooz w6emro.so ro-ocu.as®.wm coPyne�,m conerm owner. WO Y °1N www.e.io.mr.00m Io 10 re m m r I-OR 00OC USE ONLY State of Colorado Oil and Gas Conservation Commission DEPARTMENT OF NATURAL RESOURCES DRILL SITE/ACCESS RECLAMATION FORM . 10 This form shall be submitted in duplicate with the applicafion for permit-to-drill(OGCC Form 2)unless a Federal 13 point surface plan is included. Also required are a minimum f two photographs(site and access road).Soil and plant community Information from J Ire I u 1 ISE United States Natural Resources Conservation Services(USNRCS). t,Ompiete me 1.OGCC Operator Number: 47120 4.Contact Name&Phone Attachment Checklist 2.Name of Operator. Kerr-McGee Oil and Gas Onshore LP Cheryl Light Dper OGCC 3.Address: 1099 18th Street No: 720-929-6461 Drill site and access photographs City: Denver State: CO Zip: 80202 Fax: 720-929-7461 coo Section 404 documentation 5.Well Name&Number: MILKY WAY 3.10 6.County: Weld 7.Location(QtrQtr,Sec,Twp,Rng,Meridian): NENW Sec.10 T2N-RG8W 6TH PM. Pre-Drilling Information Current Land Use 8.Crop Land: Irrigated X Dry Land Improved Pasture I I Hay Meadow I I CRP 9.Non-crop land: Rangeland Timber RecreaUonal I I Other(describe) 10.Subdivided: Industrial Commercial Residential "Attach color photographs of drill site and access road;identify each photo by dale,well name and location. Soils II map units from USNRCS survey: Sheet No: NRCS Soil Complex/Series No: 10 s Series name: Bankard Sandy Loam Horizon thickness(in Inches): A: 0-4" ;8: NA C: 480" Soils Series name: Horizon thickness(in Inches): k ;B: - ;C: Plant Community • "Complete only If operations to be conducted upon non-crop land 12.Plant species from: I I USNRCS or I I Field Observation Date of Observation: List Individual species: • 13.Check one predominant plant community for the drip site: Disturbed Grassland (Cactus,Yucca,Cheatgrass,Rye,Thistle) Grassland (Blueslem,Grama,Wheatgrass,Bu0alograss,Fescue,Oatgrass,Biome) Shrub and-Brush Land (Mahogany,Oak,Sage,Servicebeny,Chokecherry) Plains and Deciduous Riparian (Cottonwood,Willow,Aspen,Maple,Poplar,Russian Olive,Tamarisk) Mountain Conifer Riparian (Spruce,Fir,Ponderosa,Pine) Aquatic (Bulrush,Sedges,Called,Arrowhead) Tundra (Alpine,Widow,Currant,Raspberry) Other(describe): • 114.Was an Mny Corps of Engineers Section 404 Perms Red? I I Yes I x I No If yes,attach appropriate documentation. - ( Comments,if any: I hereby certify that I,or persons under my direct supervision,have Inspected the proposed dral site and access road;that I am familiar with the conditions which presently exist,that the statements made In this form are,to the best of my knowledge,true,correct,and complete. .me Cheryl Light Signed ^,, mil"\l A J ki (44-- Title: Regulatory Analyst ll Date: S-aA,4)ce F 5� .; . . ,nbix t. Y '�x�3 1.4-1..'",:.:c;2;c.� L�e ,4hy��Y�•Ait� g w fi,. A r °qi`l �Y� y�p`` � P.. F.� KaeYr W'Y 'h 4,4 Y,',1 ' }n b � F3 I-.;‘,,.., 14'. W htrt M pW+9 AWh yµ,µ ,'`I''''''' &�I'"d` h a « r4 p`$1� !F ,Tr".,Y »sit u:. �. i: Mtr � J F� hMe.i g + i n .x',:.. • MILKY WAY 3-10 Location North NENW Section 10-T2N-R68W 05/07/07 • ' �n fia« .. y yta� �An� �tX S L. W5't�.>: 5 ' fA ktnye �- .-szg ".' u^; i* . ti≥o " + L §�r - . . y ra+ n � + a LS`x44 , b rb+ .1, r • • MILKY WAY 3-10 f Access EAST • ' state of Colorado In: w Ice 17 M,?A: . • ON and Gas Conservation Commission ^ >h 112D Lisa Basataasl,Dente.Comb erma Rent(30;894-21e0 F x33)894-2101 i'.., ra - APPIJCA710N FOR PERMIT 1 TO: ► • 1. MUM, n 1—Deepen, n Roar, 1 Recompets and Operate 2. TYPE OF WELL Raging X ragging Band Sorely a CL GAS❑X COALSED❑ OTHER: Sidetrack 20010124 SINGLE ZONE X MULTPLEZCNES EMINaE ZONES( came m• Amami meat 3. Name*Operator Kart-tSee OE&Gas Onshore LP 4.COGCC Operator Number. 47120 GP COGC0 5. Address: 10991581 Street APD Odg E 1 Copy Ciy: Denver ' Stale: CO Zip: 80202 Form 24 6. ConactNeme: Cheryl Light Phone: 720-929-6461 Fax: 720-929-7461 Wet location plat 7. Well Name: MILKY WAY Well Number. 18.10 Topo map 8. Uric Nang R appq: - Urdt Number Mineral lease map 9. Proposed Taal Measured Depth: 7530 Sudan*s nndety WELL LOCATION INFORMATION 30 Day notice leper 10. OBOE NENW Sec 10 Tam: 2N Rng 68W Meridian: 6th P.M. Deviated Dying Plan Silas: N 40.1588T Lorgtde: W 104.99222- Exception Landon Min rePw. Rquast Footage At Surface: SW ® 1788' FWL Exception La Wass 11. Feld-Name: Wattenberg Fell Number 90750 H2S Contingency Plat 12. Ground Etvaenm 484T 13.Count: Weld Federal Drilling Prat 14. GPS Data: ' Dale cMneurment 254en-07 PROP Rea*¢ <6 Ins-Bement Operator's Name: R.David Rux - 15. Yea e: n Directional ❑Hortaxd*(hlthy devoted), submit deviated drilling plan. Bottomhole Sec Twp Rng: piny sec.10,1241-Reaw RUM NUM Ma Footage Al Too of Prod Zone: I 1320' I n I 1320' i IFWLlAt Bottom Hole: I 1320' I IFNLI I 1320' f I FWL 16. Is Italia In a high density area(Rule tap in Ys n No 17. Dianneb the neenestbuding,pubic mad,aboveground uliy arrayed 660' 18. Datera in Neared Pmpedy Lire: 176' 19.Dan mmaarmi pastetieneinetiff in.same bonbon: 805 20. I FARE SPACING AND POOLING INFORMATION Objedte Formatnts) Realm Code Spaag Order Numbers) Il aAaeage Assigned to Well Unit Configuration IN/2.SE/4,etc.) Niobrara-Codell NBCD 407 180 NW/4 21. Mineral OMlersHp: X Fee Sate Feame _Indian Lease • 2. Surface Owneahlp: Fee Rae bloat Indian 23. Is the Surface Owner also the Mineral Cohere es IX No Surface Surety Ed23at23 as: le la the Surface OAmen(s)signature an tie lease? X IYs ace 236It231s Nix nsluhce Owners Agreement Attached or LS25A00 Blanket Sudan Bond f$2,000 Surface Bond 1E5,000 Surface Bond 24. Using standard ObOB,Sec.Tap,Rng ferret enter Sala mineral lease description upon which this proposed webs a located(attach separate shesprcep if you prefer): W/2NW/4,Sec.10,T2N-R68W 25. Dist:most Neatest Mmeral Lees Line: 4' 26. Told Acres in Lease: 80 DRILLING PLANS AND PROCEDURES 27. N li2S anpdpted? nye, INo IfYes,attach cy plan. 28. WE Mattes be encountered dung drNg7 nYe X No 29. WI salt(>15,000 ppm IDS Patti based muds be and during dtg? Yes X No 30. I qustos27 or 28 rem le the location Mammas (Rule 903)? Ys X No 828,29 or 30 are'Yes-a p8 permit nay be ragwred, 31. Mud deport R Offal nOraa Belled: Land Farming n Land Spreading (n Disposal Facility In Other NOTE The use a afar eaten r RemrrpleeOn Los requirement peakale 905b.)If a b/9s dnitng,nobly local tire officials. Stag I She of Halm Siaedesmp Weight Per Fool Stung Depth Sacks Cement Cement Bottom Cement Top Surface I 12.1/4• 8-5/8- 241E 775' 543 775' Surface Production 7-7/8" 4117 11.64 7630' 200 7630' Liner NA 32. BOP Equipment Type: n Annular Predsbr n Double Ram n Rotating Head n None 33. Comments No Conductor Casing will be used Nothing has changed since well was originaly permitted 34. Biaal Rub 306 Consultation took pace on(date) 04/30/2008 was waived,or is not required Provide supporting documentation if consultation has been warred or',goad aaMl effort did not result In cambi on. PPRMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE WITH RULE 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. I here by certify mats permit package has been Sent to the appilpae Local Go+enxnent Designee(s),and all statements made In this form are, to the bast of my iris—ICkit signed: A Print Name:� ll Cheryl Light Tice: Regulato Ma ll Date:Etf..[-01 Emil: menlantetisrearmias Based on the intonation provided herein,this Application for Frit-toDMI complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: Director of COGCC Data: Permit Number. Expiration Date: API NUMBER CONDITIONS OF APPROVAL,IF ANY: 05-123-26496 . . • WELL LOCATION CERTIFICATE SECTION 6TH P . M . BASIS OF BEARINGS .5' SEC. 10 NW SEC. 10 N 89°46'43' E 2648.21' 3.5' A 7239 3" ACLS28666 � I MILKY WAY 3-10 1768' f N C., ces to I HSR CARLSNI 6-10 L., BH 1320' FNL I GROUND ELEVATION = 4847' 7- I 1320' FWL I LAT./LONG. = NI40.15887° cv WI 104.99222° 0 W1/4 SEC. 10 -----I----- - - - - - 2.5' AC LS 12374 NOTES: I THIS A DIRECTIONAL DRILL WELL. I BOTTOM HOLEIAT 1320' FNL & 1320I' FWL. TWINNING PROPOSED WELL MILKY WAY 3-10 WHICH IS 30' 3E. PROPOSED WE L MILKY WAY 3.10 IS 671' FNL & 1796' • EXISTING WELL HSR CARLSON 6-10 S 47' SW. _ - EXISTING WELL--HSR GARLSON-6-10 S 696' FNL-&c-174-1- - I SEPERATOR ENCLOSURE IS 99' W. TANK BATTERY ENCLOSURE IS 118' W NO OTHER VISIBLE IMPROVEMENTS I I WITHIN 200'l I I I I I I I HEREBY STATE TO KERR-MCGEE OIL & GAS ONSHORE LP THAT THIS WELL LOCATION CERTIFICATE FOR THE WELL MILKY WAY 18-10 IS LOCATED 660' FNL & 1768' FWL, SEC. 10, T2N, R68W, 6PM. vu -- eG. LEGEND N 0 RT H C). pair'.°° �. = FOUND MONUMENT 0 5 0 1000 Vim,.:-Q a • = PROPOSED WELL CalCie-ITIL"<1 \ = IMPROVEMENTS (AS LABELED) SCALE: 1'=1000° ELEVATION SOURCE = USGS 7.5' QUAD.MAP CONTOURS °••••'; NGVD 1929 DATUM R. DAVID RUX PLS 37045 L LANs'" LAT. & LONG. SHOWN ARE DIFFERENTIALLY CORRECTED (NAD '83) PETROLEUM FIELD SERVICES, LLC " USING (DGPS) WITH (PDOP) VALUES LESS THAN SIX(6) THIS IS NOT A MONUMENTED BOUNDARY SURVEY IT IS ONLY A DISTANCES ARE FIELD MEASURED DRAWING INTENDED TO DEPICT THE WELL LOCATION TO SECTION LINES DISTANCES TO WELL SHOWN PERPENDICULAR FIELD DATE: PREPARED BY: A, TO SECTION LINES 1-26-07 WIND DATE: /.6 WELL MANE: -27-07 PFS ID MILKY WAY 18.10 BY: twill Ile LOCATION; RME Petroleum Field Services LLC SIGNED: 215 Union Blvd. Suite 410 WELD COUNTY, CO Lakewood, CO 80228 MW 1/4, SEC. 10, T2N, R68W, 6TH P.M. • • 0 r'i;'' . : ..".; ' •• :' : ; - ' . - # L aY 18-10 ' . :. i • • S r �Na • 1t 3 - i t , . - . . . fr fiD -i _ ____ .4/h) :,_:,, 4070.- ._, ... • , :.:,i, ., : . -:: . - . . " 50.,..,:12.000 le . 4 l''=1000 ft 02002 D-Lor,ne.3-D TopoQuad■®.Date copyright of content owner. ��..- �_ www.delorme.cwn • m for •M O " i lam '1111111 11111 11111 III 1111111 II 111111r:0 111111111 IIII • 1 2893758 of 75 18 ft 95.00 10/22/2001 D O0032P Weld Suki County Tsukamoto County CO SURFACE USE AGREEMENT AND EASEMENT • (Existing Well and Future Wells) This Surface Use Agreement and Easement (this "Agreement") is made this l714day of August,2001,by and between Kerr-McGee Rocky Mountain Corporation("KMC"),with an address of 1999 Broadway, Suite 3600, Denver, Colorado 80202, and Bromley 132, LLC and Parkwood Properties,LLC(collectively,the"Owners")and Dairy Farmers of America,Inc.("DFA")and Milky Way Owner's Association, Inc. ("Milky Way") (collectively, Owners, DFA and Milky Way are referred to as "Developer"), with an address of 12460 1st Street, Eastlake, Colorado 80614. Recitals A. Developer is the owner of the surface of the E/2NW/4 and W/2NE/4 of Section 10, Township 2 North, Range 68 West, 6th P.M., Weld County,Colorado(hereinafter referred to as the "Property"); B. Developer's surface ownership of the Property is subject to the rights of the oil and gas mineral estate, which is owned by third parties and which has been leased to KMC; C. Owners have plans to develop the surface of a portion of the Property as a housing development known as Idaho Creek Planned Unit Development; • D. KMC has the right to deepen,recomplete or rework the existing well in the NW/4NE/4 of Section 10 on the Property more particularly described as the David E.Camenisch Gas Unit#1,990' FNL, 1440' FEL (the "Existing Well"). E. KMC has the sole and exclusive right to develop the oil and gas resources beneath the Property by drilling additional wells (hereinafter referred to as "Future Wells") on the Property and/or deepening, recompleting, or reworking each such Future Well and the Existing Well. F. Developer desires to acquire KMC's agreement to locate Future Wells in the Future Oil and Gas Operations Area(as hereinafter defined)and to relinquish surface rights as to all portions of the Property except in the Existing Oil and Gas Operations Area(as hereinafter defined) and in the Future Oil and Gas Operations Area. G. This Agreement sets forth the parties' rights and obligations regarding the relationship between the development of the Property by Developer and KMC's operation and development of its oil and gas leasehold estate. Agreement In consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: • • 11111111111111111111III1111111IIIlllllii111111111III! • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 2 of 18 R 95.00 D 0.00 Weld County CO 1 AREA RESERVED FOR FUTURE WELLS. Developer shall provide KMC the surface locations designated on Exhibit "A" (the"Oil and Gas Operations Areas") for the Existing Well (a radius of 150' from the wellhead, and a radius of 200' from the tank battery of the Existing Well for DFA and Milky Way, and a radius of 250' from the wellhead for the Owners,the"Existing Oil and Gas Operations Area")and for the Future Wells (the "Future Oil and Gas Operations Area") for any operations conducted by KMC in connection with the Wells, including, but not limited to, drilling, directional drilling, completions, workovers, well deepenings, recompletions, fracturing and lease operating activities. Collectively, the Existing Well and the Future Wells are referred to herein as the "Wells". Developer hereby consents to all of the operations of KMC described above which are conducted in the Oil and Gas Operations Areas during the period from April 1st through November 1st of each year. Except for the space associated with the Oil and Gas Operations Areas, and associated with the access roads provided for in Section 5 below, KMC shall not occupy the surface of the Prnnerty except in the event of an emergent' or for reasonable incidental, temporary or non-damaging activities, and KMC shall be strictly and solely responsible for any property damages directly caused by KMC or that may occur on such portions of the Property as a direct result of KMC's acts or omissions in either of the Oil and Gas Operations Areas. 2 ADDITIONAL CONSIDERATIONS. • Contemporaneously with execution of this Agreement, Owners shall deliver a cashiers' check or wire transfer of immediately available funds in the amount of$80,000.00 and DFA shall deliver a cashiers' check or wire transfer of immediately available finds in the amount of $40,000.00 (such payment totaling $120,000.00) to either (i) KMC, or (ii) an escrow account with an escrow agent under an escrow agreement which is mutually acceptable to the parties hereto. KMC acknowledges receipt of said funds by its execution of this Agreement. In consideration of such payment,KMC hereby relinquishes,quit claims,abandons and releases its surface use rights on the E/2NW/4 and W/2NE/4 of Section 10 on the Property, except on those lands in the Oil and Gas Operations Areas, those lands associated with the access roads provided for in Section 5 below, and those lands associated with the flowlines and pipelines provided for in Section 7 below. 3 WELL LOCATIONS. KMC shall have the right to drill Future Wells(including horizontal and directional wells that produce from and drain lands other than the Property)at any location within the Oil and Gas Operations Areas, so long as such locations are permitted locations under the then-applicable well spacing regulations of the Colorado Oil and Gas Conservation Commission("COGCC"). Except as otherwise provided in Section 1 and 2 above and its rights within the Oil and Gas Operations Areas as set forth in this Section 3,KMC shall not have the right to drill Wells on the Property. • 4 SURFACE RECLAMATION AND SURFACE DAMAGES. CIwRUYEMK MD f4Trwas Pi.wCAkL oML,KA SEMNOi'ilkt?RAll'NM NorflLErWNTrxr It wV AtiMPOIT a M1eXNixunVuImmAn¢FCEKI I D X. • 111111 IINI 111111 III 1111111 II IIIII11111 Iii! Iill • 2893758 10/22/2001 12:32P a Suki Tsukamoto 3 of 18 R 95.00 D 0.00 Weld County CO • KMC shall be responsible for all costs of reclamation for its activities on the Property and shall perform same in a timely fashion pursuant to applicable law and regulations. 5 ACCESS. a) Developer shall provide to KMC a 30-foot wide easement for access to the Oil and Gas Operations Areas. The Existing Oil and Gas Operations Area has frontage to an existing public road. An existing access road to the Future Oil and Gas Operations Area meets the requirements of this paragraph. Any change to the path or course,by the Developers, of the existing access roads will be at the Developers sole cost and expense. The altered access roads shall be constructed at Developer's sole cost and expense, and shall be constructed as all-weather surface(gravel)roads. Access shall extend from either State Highway 119 or Weld County Road 7%. KMC shall maintain the access roads at its sole cost and expense during the period of time that KMC conducts operations with respect to its leasehold rights. If such access is not by means of public roads, upon the request of KMC,Developer shall execute and record a separate easement and right-ol-way in favor of KMC, confirming the rights of access granted in this Agreement. Within an Oil and Gas Operations Area, KMC may locate such roads as it determines necessary and convenient for its operations, at its sole cost and expense. b) Access to a Well may be changed by the mutual written agreement of Developer and • KMC; provided, however, all costs and expenses of the relocation shall be borne by Developer. c) Developer shall keep access used by Developer or the subdivision occupants and KMC in good condition and repair until such roads are dedicated to the local governmental jurisdiction; provided, however, if KMC, its agents, contractors, subcontractors or invitees causes damage to a road or other improvements,KMC agrees to promptly repair any damage so caused which is a direct result of the acts or omissions of KMC, its agents, contractors, subcontractors or invitees. Neither KMC nor Developer shall unreasonably interfere with the use by the other of an access road. 6 BATTERIES AND EQUIPMENT. KMC shall have the right to locate, build, repair and maintain tanks, separators, dehydrators,heaters,meters,compressors and other equipment reasonably appropriate for the operation and production of the Wells within the Oil and Gas Operations Areas. With respect to KMC's equipment and facilities other than pipelines: a) KMC shall install and maintain,at its sole cost and expense,all fences around any Wells in compliance with the Rules and Regulations of the COGCC, or as are mutually agreed in writing by Developer and KMC. KMC shall install its standard warning signs on the • fences surrounding any Wells; IXA.133712 3 11111 11111 1111111 III 1111111 II II11111I 1111111111111 • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 4 of 18 R 95.00 D 0.00 Weld County CO • b) KMC shall install and maintain,at its sole cost and expense,all gates and locks necessary for the security of any Wells. Such gates and locks shall be the standard gates and locks used by KMC; c) KMC shall paint all production facilities for any Wells, including wellhead guards,with colors that are approved by the COGCC; and d) Developer shall install and maintain,at its sole cost and expense,any and all landscaping around any Wells. Developer shall not inhibit KMC's access to any Wells by landscaping or other installations, and any landscaping or trail in an Oil and Gas Operations Area which interferes with or impedes KMC's oil and gas operations will be removed at Developer's sole cost and expense. KMC consents to installation by Developer of landscaping,regional trails,and other landscaping improvements as shown on the Idaho Creek Planned Unit Development within the Oil and Gas Operations Areas and acknowledges that the Idaho Creek Homeowner's .Association may msinto', such landscaping improvements and pericciicaily mow native grass areas on the Existing Oil and Gas Operations Area. Should KMC remove or damage any landscaping or trails within an Oil and Gas Operations Area, Developer will be responsible for all costs associated with the repair or replacement of such landscaping or trails. 7 FLOWLINES AND PIPELINES. • KMC shall have the right to lay any and all new flowlines and pipelines for gas and liquids necessary in connection with KMC's production and transportation of oil and gas from any Wells,which new flowlines and pipelines shall be located in public rights-of-way or adjacent tracts or easements as shown on the subdivision plat of the residential portions of the Property. If any new flowlines or pipelines are necessary, KMC agrees to locate and route such lines along the access roads shown on Exhibit "A" or otherwise in the rights-of-way, tracts or easements designated for such purposes on the plat of the Property, or on lands outside the Idaho Creek Planned Unit Development, but within the boundaries of the Property. KMC agrees to restore the surface of the Property or any improvements located thereon or therein to its prior condition (including, without limitation, repair of curb, gutter, streets, sidewalks, and landscaping) promptly after the completion of installation, maintenance, repair or replacement of any of its facilities located in any such right-of-way,tract or easement. KMC further agrees to comply with any and all applicable county, state or federal regulations pertaining to the location of such pipeline or flowlines. All pipelines shall be located at a surface depth of approximately 48 inches from the final graded elevation. Flowlines, which are defined as those lines that carry water or hydrocarbons from the wellhead to a production unit (such as a separator), shall be buried to a surface depth of at least 36 inches. Developer shall furnish information regarding the final grade of the Property to KMC. The construction and burying of flowlines and pipelines shall be at the sole cost and expense of KMC or its gas purchaser. Developer and KMC shall consult and cooperate regarding their respective development plans. 8 NOTICE OF OPERATIONS. • CMOCUM......MlO.rr.,. �C4SL.o.LLou.E,,,"a.,nm.,,o.�,,..E,NET.,.� ,,.rE.,,.,...,,., e,a, ., ..,,.,,,,,,,,, ,,,,x...J, , • I IIIIII 111111111111 III 1111111 II iiii•I III 11111 iii iii • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 5 of 18 R 95.00 D 0.00 Weld County CO • KMC shall provide at least fourteen (14) days prior written notice to Developer and/or any homeowner's association formed by Developer of any operations in connection with Section 7 above or in connection with the reworking, fracturing, deepening or other operation on any Wells;provided,however,that KMC shall provide at least thirty(30)days prior written notice to Developer and/or any homeowners' association formed by Developer, of the drilling of any Future Wells. Regardless of the foregoing notice requirements, KMC shall have immediate access to the Property in the event of an emergency. The Notification shall describe the following: a) The proposed starting date for the proposed activity; b) The proposed operations to be performed at the site; and c) The approximate duration of the proposed activities. Not less than five (5) working days prior to KMC's mobilization on either Oil and Gas Operations Area. KMC, Developer or any homeowner's association formed by Developer may request an on-site meeting. The purpose of the meeting shall be to inform such parties of the expected activity and to coordinate site access, hazards, barricades, restoration or any other issues that affect the use of and the safety of Developer's development. • 9 NOTICE TO HOMEOWNERS AND BUILDERS. Developer shall furnish all buyers of the Property from Developer with a plat or map showing the Existing Well,future roads,the Oil and Gas Operations Areas and other related facilities. Developer shall provide record notice to all builders,homeowners and other buyers of the Property from Developer and the homeowner's association that: a) Such buyers are not purchasing and do not own any interest in the oil and gas mineral estate; b) There may he ongoing oil and gas operations and production at the Oil and Gas Operations Areas on the surface of the Property; c) There are likely to be Future Wells drilled and oil and gas operations and production activities on the surface of the Property at the Oil and Gas Operations Areas; d) Builders and other"wholesale" purchasers from Developer of portions of the Property larger than one residential lot, and property zoned for multifamily use, as successors in interest to Developer, will acquire rights under this Agreement and will assume those • obligations undertaken by Developer pursuant to this Agreement; and 5 1111III 1111111111111111111111 II IIIIIII 1111111111111 • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 6 of 18 R 95.00 D 0.00 Weld County CO • e) Homeowner's associations and buyers of individual lots or homes, as successors in interest to Developer, will acquire rights under this Agreement,but will be subject to the waivers contained in Section 10 and the covenant contained in Section 11 of this Agreement. The requirements set forth in this Section 9 may be satisfied by Developer furnishing recorded copies of this Agreement to the parties identified in this Section 9, or by recording this agreement against the separate property parcels owned by the Developer. 10 DRILLING AND COMPLETION OPERATIONS. KMC shall endeavor to diligently pursue drilling operations on the Property in a manner that will minimize the total time period that a drilling rig is on the Property and to avoid rig relocations or startup during the course of drilling. Developer waives any objections to continuous(i.e., 24-hour)drilling operations with respect to the drilling of new wells at the site of either of the Oil and Gas Operations Areas. Developer also waives any right to require that wellhead or production equipment located at an Oil and Gas Operations Area be located in conformance with any setback requirements (including but not limited to those concerning any "high density" rules of the COGCC) that are more restrictive than those specified in Section 11 or as depicted on Exhibit "A". Subject to the waiver of setback requirements as set forth above, • KMC shall conduct its operations in compliance with the provisions of the Rules and Regulations of the COGCC as amended from time to time. 11 SETBACK REQUIREMENTS. a) Any Future Well, at the time KMC initially drills it, shall be located at least 150 feet or 1.5 times the rig height,whichever is greater,from any occupied building,public road or major above-ground utility line. If KMC desires to drill a Future Well less than 150 feet from a public road, Developer shall provide to KMC any waivers necessary to enable KMC to comply with the Rules and Regulations of the COGCC; b) Consistent with the COGCC's Rules and Regulations, Developer shall not locate any residential lot line within 150 feet from an Oil and Gas Operations Area; and c) Developer shall not sell any portion of the Property or residential lot that does not meet the criteria set forth in Section 11.b. above,unless and until the affected Well is plugged and abandoned and KMC has provided notice that it does not anticipate drilling a new Well at the abandoned location. The prohibition in this Section 11.c. shall not prevent transfer of landscape, openspace or drainage tracts to any homeowner's association formed by Developer. 12 GOVERNMENTAL PROCEEDINGS. • Developer shall not oppose KMC in any agency or governmental proceedings,including but not limited to COGCC or local governmental body proceedings, related to KMC's drilling, CnK.,,,E",,No,E„I.C.•R,µ<,ARIS„N„ou.Er"Nc,,.,,,w ,,..,.N.,,,,<,c„"..,Ic,,,.,,.,vA,gv,..,,..,,,N„,,..,,ao.,„ «., x 111111111111111111 III 1111111 �� r�� 101 VIII • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 7 of 18 R 95.00 D 0.00 Weld County CO • workovers,well deepenings,recompletions or other operations in either Oil and Gas Operations Area, provided that KMC's position in such proceedings is consistent with this Agreement. 13 LIMITATION OF LIABILITY, RELEASE AND INDEMNITY. a) NO PARTY SHALL BE LIABLE FOR,OR BE REQUIRED TO PAY FOR, SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES TO ANY OTHER PARTY FOR ACTIVITIES UNDERTAKEN IN GOOD FAITH WITHIN THE SCOPE OF THIS AGREEMENT; b) Except as to claims arising out of pollution or environmental damage(which claims are governed by Section 14 below) or out of other provisions of this Agreement (which claims shall be governed by the terms of this Agreement),each party shall be and remain responsible for all liability arising out of those losses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including without limitation attorneys' fees and other c gists associated therewith (all of the aforesaid herein referred,to collectively as "Claims"), arising out of or connected with each such party's ownership or operations on the Property, no matter when asserted, subject to applicable statutes of limitations. Each such party shall release, defend, indemnify and hold the other parties, their officers, directors, shareholders, employees, successors and assigns, harmless against all such Claims arising from the acts or omissions of the indemnifying party giving rise to the subject Claims. This provision does not, and shall not be construed to, • create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement other than the right to be indemnified for Claims as provided herein; c) KMC shall not permit any liens that arise out of KMC's acts or omissions to be filed on or otherwise attached to, the Property, and in the event any such liens are filed by a person pursuant to any statute or any lien attaches by operation of law or otherwise,KMC shall take all necessary action, at its sole cost and expense, to have any such lien discharged and released as promptly as practicable,except that KMC shall have the right to file an operator's lien against other owners of the oil and gas leasehold interest to recover amounts owed to KMC; d) Developer shall not permit any liens which arise out of Developer's acts or omissions to be filed on or otherwise attached to,the mineral estate associated with the Property, and in the event any such liens are filed by a person pursuant to any statute or any lien attaches by operation of law or otherwise, Developer shall take all necessary action, at its sole cost and expense, to have any such lien discharged and released as promptly as practicable; e) Developer shall bear all risk of loss for any reason with respect to any improvements constructed by Developer or its assigns that are located within either Oil and Gas Operations Area, the non-public access roads contemplated in Section 5, or those • lands associated with the flowlines and pipelines provided for in Section 7, and Developer hereby waives and releases KMC and its affiliates, shareholders, officers, agents, representatives, employees, successors and assigns, from any and all liability DOS 351742 I1111111 III 1111111 IIIIII�11 Iii! • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 8 of 18 R 95.00 0 0.00 Weld County CO • for any claims, damages or losses associated in any way with such improvements or surface damages thereon, regardless of any negligence on the part of or on behalf of KMC or its affiliates, shareholders, officers, agents, representatives, employees, successors or assigns; provided that Developer's obligation to bear the risk of loss and the associated waiver and release of KMC is conditioned upon the obligation of KMC to use reasonable care with respect to buried utilities and landscape improvements on such lands; and f) Upon the assignment or conveyance of a party's entire interest in the Property,that party shall be released from its indemnification obligations in Section 13.b. above, for all actions or occurrences happening after the assignment or conveyance;provided,however, that the assignee of such party shall thereafter be deemed to have assumed the indemnification obligations of such party as of the date of such assignment. 14 ENVIRONMENTAL INDEMNITY. a) The provisions of Section 13 above, except for Section i3.a., shall not apply to any environmental matters,which shall be governed exclusively by the following, subject to the limitations of Section 13.a. above; b) "Environmental Claims"shall mean all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on or ownership of the Property or ownership of the oil and gas leasehold interest, • whichever is applicable, and all cleanup and remediation costs, fines and penalties associated therewith,including but not limited to any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims shall not include the costs of any remediation undertaken voluntarily by any party,unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party; c) "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order of any governmental authority(ies),which relate to or otherwise impose liability,obligation, or standards with respect to pollution or the protection of the environment,including but not limited to,the Comprehensive Environmental Response,Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C- §§ 1801 et seq.), the Clean Air Act, and the Toxic Substances Control Act(15 U.S.C. §§ 2601-2629); and d) "Environmental Indemnification" shall mean that KMC shall fully protect, indemnify, defend and hold harmless Developer and any lot owner from any Environmental Claims relating to the Property or oil and gas leasehold thereunder that arise outof its ownership and operation of the Oil and Gas Operations Areas, and Developer shall fully protect, • indemnify, defend and hold harmless KMC from any and all Environmental Claims relating to the Property that arise out of Developer's development of the Property. L.NTLIININTS ANTS ETTNGNINVANLMLSUNV°LAI=INIAOTRIPORAR1'INTE F NET 41L ES I tJNIEN f 1ENIPAIIITVPMOAN;ISNVI[SIIINIIAvliAEIIXIDAIRICMEEAIII Due 1 IIIIII 11111 1111111 III 1111111 II 111111 l 11111 �� IIII • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 9 of 18 R 95.00 D 0.00 Weld County CO • 15 EXCLUSIONS FROM INDEMNITY. The indemnification of any party herein shall not cover or include any amounts for which the indemnified party recoups from third parties without judicial process, or that for which the indemnified party is reimbursed by any third party. The indemnifications set forth in this Agreement shall not relieve any party from its obligations to third parties. 16 NOTICE OF CLAIM FOR INDEMNIFICATION. If a Claim is asserted against a party for which another party would be liable under the provisions of Section 14 or 15 above, it is a condition precedent to the indemnifying party's obligations hereunder that the indemnified party give the indemnifying party written notice of such Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it was a written Claim). The indemnified party shall make a good faith effort to promptly notify the indemnifying party of receipt ofa Claim and shall effect such notice in all events within such time as will allow the indemnifying party to defend against such Claim. 17 REPRESENTATIONS The parties each represent to one another that it has the full right and authority to enter • into this Agreement. KMC does not represent that it has rights to settle matters for the mineral owners in the Property. KMC only has rights as a mineral lessee and this Agreement only pertains to KMC's rights. KMC represents that it is the sole and exclusive lessee of oil, gas and other minerals with respect to the Property,and that no other person, firm or entity has any right to develop, extract, remove or exploit the oil, gas and other minerals underlying the Property. 18 SUCCESSORS. The terms, covenants and conditions hereof shall not be joint but rather shall be several as to the parties comprising Developer as to the portion of the Property owned by such party. This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns;provided that KMC's successors and assigns shall be deemed to be limited to lessees under the oil and gas leases which KMC owns. 19 TERM. This Agreement shall become effective when it is fully executed and shall remain in full force and effect until KMC's leasehold estate on the Property expires or is terminated,and KMC has plugged and abandoned all Wells and complied with the requirements of all applicable oil and gas leases pertaining to removal of equipment,reclamation, cleanup and all other applicable provisions of the leases and existing laws and regulations. When this Agreement ceases to be in full force and effect,the parties shall execute any and all releases necessary to evidence the fact • that this Agreement shall no longer apply to the Property. 20 NOTICES. D(,,,,,,,,, 9 filial Iilllll III 1111111 lip IIII • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 10 of 18 R 95.00 0 0.00 Weld County CO • Any notice or other communication required or permitted under this Agreement shall be sufficient if deposited in U.S. Mail, postage prepaid, addressed to each of the following: If to KMC: Kerr-McGee Rocky Mountain Corporation 1999 Broadway, Suite 3600 Denver, Colorado 80202 Attention: Land Manager If to Developer: Bromley 132, LLC Parkwood Properties, LLC Attention: Scott L. Carlson, Manager PO Box 247 Eastlake, Colorado 80614 Dairy Farmers of America, Inc. do Western Dairy Coop PO Box 26427 • Salt Lake City, Utah 84115 Milky Way Owner's Association, Inc. c/o Western Dairy Coop PO Box 26427 Salt Lake City, Utah 84115 Any party may, by written notice so delivered to the other parties, change the address or individual to which delivery shall thereafter be made. 21 RECORDING. This Agreement,any amendment hereto,and any release entered into pursuant to Section 19 above,may be recorded by KMC or Developer, who shall provide the other parties with the associated recording information as soon as practicable thereafter. 22 SURFACE DAMAGES. In consideration of the parties'rights and obligations, as outlined herein,this Agreement shall constitute the agreement for surface damages required pursuant to the COGCC's Rules and Regulations and under any oil and gas lease between the parties for the Oil and Gas Operations • Areas. 23 ARBITRATION. L LOOCUMENTS M'C6LrrINCY'.0.,'ANC ANLSONN.004L SETrINCSTEIIPUMUV INTL{Nrr ruts C,NTzNrLE1.PYIITO7 Orbit ISRM,ION{lwkrOk IuulLt IlLrAI L I INK • 11111 1111111 III 1111111 11 IIIIIII►�IIIIII III Jill 2893758 10/22/2001 12:32P JA Suki Tsukamoto 11 of 18 R 95.00 0 0.00 Weld County CO • Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by arbitration administered by the American Arbitration Association under its commercial rules in Denver, Colorado, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 24 APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the law of the State of Colorado, without reference to its conflict of laws provisions. 25 ENTIRE AGREEMENT. This Agreement sets forth the entire understanding among the parties hereto regarding the matters addressed herein, and supersedes any previous communications, representations or agreement, whether oral or written. This Agreement shall not be amended, except in written form signed by all parties. 26 OTHER ACTS AND DOCUMENTS. The parties agree to undertake such other acts and execute and deliver such other • documents as may be reasonably appropriate or necessary to effect the purpose and intent of this Agreement. 27 MERGER. This Agreement represents the culmination of all prior negotiations,representations,and agreements between the parties with respect to the purchase and sale contemplated hereby. All such prior negotiations, representations, and agreements are merged herein. 28 COUNTERPARTS. This agreement may be executed in any number of counterparts. Each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same agreement The parties have executed this Agreement on the day and year first above written. KERR-McGEE ROCKY MOUNTAIN CORPORATION By: ( , --/tka • Janet W. Pasque Vice President ‘ 1111111111111111111111111111111111111.1111111111111 • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 12 of 18 R 95.00 D 0.00 Weld County CO • DEVELOPER: Bromley 132, LLC By: Name: Kent D. Carlson Title: Manager Parkwood Properties, LLC By: lla^YS `� Name: Clay Carlson Title: Manager Dairy Farmers o£America, Inc. By: • Name: Title: Milky Way Owner's Association, Inc. By: Name: Title: • �Ocxvuwn.wr,venwueuewe,wuuuw.ru arrwusreumn,wrirvru xer n¢s.awrrrr.eewru..rmo a.n vruawwnu.uoxiuouxxrrcnu+a 111111111111111111 III 1111111 lilt� 111111 III ID • 2893758 10/22/2001 12:32P JA Suki Tsukamoto 13 of 18 R 95.00 D 0.00 Weld County CO DEVELOPER: • Bromley 132, LLC By: Name: Kent D. Carlson Title: Manager Parkwood Properties, LLC By: Name: Clay F. Carlson Title: Manager Dairy Farmers of America, Inc. 1� g., By: e2, .,(.ZA.cd • Name: f3GIQti'44-IQ /7 Meia/vFkL Title: ,45515r4^' r sQ C 4/ 4/d y Milky Way Owner's Association, Inc. By: _t Name: 13F R,4"4/20 /MO ""1-"; Title: (4-SS/5T4 "'' SEC/ E )14y • C EEII ONTavNPEaCE I4NrtnIOWOCREERNM V6 NfR VEP]IONOF N�EOR IPNp CREEL 12 . ACKNOWLEDGMENTS • STATE OF COLORADO ) 111111111111 1111111 III 11111111111111111 III IIIIII III IIII CITY AND ) ss. 2893758 10/22/2001 12:32P JA Suki Tsukamoto COUNTY OF DENVER ) 14 of 18 R 95.00 D 0.00 Weld County CO The foregoing instrument was acknowledged before me this o(.(mday of August 2001, by Janet W.Pasque as Vice President of Kerr-McGee Rocky Mountain Corporation, a Delaware corporation, on behalf of that corporation. ".Witness my hand and official seal°- ;> (SAL) LYNDA K. HENDRIX NOTARY PUBLIC - STATE_OF Qn t,/ \-(X M'Commission Expires 3110/20112Notar§Public My Commission Expires: STATE OF ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of August 2001, by as for Mountain Empire Dairymen's Association, Inc., a corporation, on behalf of that corporation. • Witness my hand and official seal. (SEAL) Notary Public My Commission Expires: STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of August 2001, by as for Milky Way Owner's Association, Inc., a corporation, on behalf of that corporation. Witness my hand and official seal. (SEAL) • Notary Public My Commission Expires: 13 111IIII11111 OEM III 1111111I1'Hill i11111111III IIIf • 15or 8 p3758 t 96.00 D 1 0.00 Weld County COmoro STATE OF COLORADO) � )ss. COUNTY OF �lata+ti ) fra— The foregoing instrument was acknowledged be ore me thisd/ day of August 2001,by Kent D. Carlson,as Manager of Bromley 132,LLC,a _ limited liability company on behalf of that limited liability company. Witness my hand and official seal. (SEAL) Not lic My Commission Expires: D /Gt en STATE OF COLORADO) ne^ )�• 01 COUNTY OF "-34+-)" The foregoing instrument was acknowledged before me this illy of August 2001,by Clay F. Carlson,as Manager of Parkwood Properties,LLC,a (S-ar.I2 limited liability company on behalf of that limited liability company. ��it snt- ep 41 seal. Witness�>,n tsk(SEAL) a a TA • s Et a •0 Vi c;•. p iZ UBL�� .:4:3 Notary lic 4% OF c0 p0�y My Commission ca/o/3a z • civ.JCM,at afl ns.4tatXittA. r11WrY4MN,M!hat_nc.. ts'WYMIN.OI��Yv®YYWd�WYY.l1M11 WY' -,, ACKNOWLEDGMENTS • STATE OF COLORADO ) 11111111111111111101111111111111111111111111111111111 CITY AND )ss. 2993758 of 11 1012212001 0 0.00 00 t3 Id SindCou Tty ulC moto COUNTY OF DENVER ) 18 The foregoing instrument was acknowledged before me this day of August 2001,by Janet W.Pasqua as Attorney-in-Fact for HS Resources,Inc.,a Delaware corporation,on behalf of that corporation. Witness my hand and official seal. (SEAL) Notary Public My Commission Expires: STATE Oral 'd: ss. COUNTY OFD e foregoing " strument was acknaowledd ed before this ' ay of August 2001, by as C-LC �A� fra Mountain Empire Dairymen's ion, c a corporation,on half of that corporation. VNiItir,,.smY hand and official seal. •�.� :sac . � Y a st"` rVr. • • Notary Public ISY Mg SO ..M pA yConunissionExpires: padic•stataedt aW N4 �y Green ourdY ee Nre5.2 STATE 61522-et. ) gyp )ss. COUNTY OE.8. &etc-aU- The foregoing ' !anent was acknowled d �be/fore ape this jLday of August 2001, by f"4�.�.1(as 4 ' Jr P ed o .s4A for Milky Way er's Association,Inc.,a — corporation,on behalf of that corporation. ylr npy(tand and official seal. r... • 4' 16IN • Notary Public My rimisemn'Expires: • • • tu4Yt•: bmtsot! Nine S Almon Greene Counti BO=Mt 42003 t 3 • 1 Illill lllll Illllll III 1!11111 II IIIQG� jinni III Ill 2893758 10/22/2001 12:32P JA Sold Taulomoto .17 of 18 R 95.00 D 0.00 Weld County CO C.4 m oa oz o m boa z w~ <N J 'H 1-Y. W N n0W00 N Q YORK OO.. 1y W2 20 W`.+w w <I� Z OF-COO 2IN� 11. U - U O NCOW Z ...lQ m0.111Z SX•CluI- lW.(1'4 X - OINy<w Iw O¢ ..an �52c9< Ott J 'Ott- m f1J Q F. 20l-z¢ .11- 2 2 ( ow It-Z ,LL 500p0o< "4000 ~= �J. W 0 N �Z(n O>00NO ¢` ¢r<= -1 w wm �O W O J ¢H Z 21q w WYJF-uji-. F.SF- I- a<< SSe IaWn = p(j0H W ell . �20Ua JO_1 �3p �miri� 2 W - H I— i1r ¢ 1- < NN rig z F- F- 6p is to H16.mI I1��W� 3 ....NJ lap, O 2 O WXCC Q WNHCO26Wy it AllVO W �o F-mm 1- d 7 ¢W Q. F tuU1ZZ rYttoppt•1p¢CCu¢wtg 1d mgu< oN 1[72 • m --� —eweei ",ou pn.el4=01.4 Wg- 4110 _i LO Ca 86 rZu gilt y¢ NNO 5z F-Nm -z rPi a. 3gWWy2::r-1Oftp�7o NSE`U7¢OII�� "VIE U 2 W G*1�HZ-0010pSaQr*1-C op--J�II�1�Or�U01<O`JJ N�j{y{Y��ypr -.1 (� ! 1-WO<7NN2wEe4422204820<6WRZ Z LLZp_z e lim2 • �y2-'CF, 01/){ 1-JO< h1SSSw G¢¢J2=CG < OM < 2WZ3y IF<m=Fmh<<FO-g)-.1-OC $ N am. ` S am NO0'35'On 243.45' /NO0 '35'02'N 249.36' — _�` as j- O. e - ' ¢ N • wz - -z t W ¢w h Nw ii-IS % ifill a in tee eel \gi \ , v°• r a iaaa it URI '9 Na•111...t asan..twa lcaanwwv\M iiiIIHJIlIFrIlIr lIIIlJiiItfr Ait _1 923774 10/229001 12:32/ JA Sold Tout. F 9 of 11 II MAO 0 COO WoIO OMIT CO • • *0 WEST LIPS OF WESTERN OAIRYAEN /e COOPERATIVE INC. SUBDIVISION P I . NZ m loZ cala • �N - -. 7 m na on ! �( A NI MI ES N yO p 2 SOYB Q M.SZ.BS.00M .SIEZ► M.OOj? 0001 _ _ �{ __ lam si m mmi I m d izm - d n i I o. 0 .. m s. NO g O- n 33 I fl In '._ 907'99'0!'-.128.22''—— gl�lli i 0 s ....taL9P. gh _ I my W co 0 fli ski k NZ >13 OD i • tx N i o JJII? I VCR.7-1/Y f (-01 • i _ ii \ D _ lIOLIMIMS I l OXIOSITMJCIllatal at: LOST 71,MINI CAL MD „""" I 1-800-922-1BBT rtmerireggeteg ...I OAS Or0MIXIONW '�' 0o'.OIP0IOATm PS liVANICES car. s. CONKLIN°/Mmm.! 111. kg KerrNtGee KemMaGe.OG&Gas OISh.r.LP April 10,2007 19999emd ay,Suite 3700,Denver,Colorado 80202 303-296360o•Fax 30;-2964301 WA FACSIMILE AND U.S MAIL Lehigh Enterprises Acquisition Corp. Ms.Marsha Irwin 10220 North Ambassador Drive P.O.Box 909700 Kansas City,Missouri 64190-9700 Re: Milky Way Lease Township 2 North,Range 68 West of the 6th P.M. Section 10:NE NW Weld County,Colorado Dear Gentlemen: • This surface agreement will confirm and set forth the terms of an agreement that you and I reached in our conversation of November 10,2006 concerning the operations of Kerr-McGee Oil & Gas Onshore LP C`ICMG")on your property. We agreed to execute this surface agreement to allow KMG to move forward with its oil and gas operations while we negotiate a more detailed and definitive surface use agreement. The promises exchanged in this surface agreement are valuable consideration and shall be recorded as a memorandum to the agreement. Attached and made part of this agreement is Exhibit"A"showing the three locations as described in below. Accordingly, the parties agree to the following: I. KMG may drill one vertical well on your property,entirely at its own expense,in the following locations: KMG Milky Way 3-10: 660'FNL, 1768'FWL 2. KMG may drill one directional"318a-e"well,entirely at its own expense,from surface locations at; KMG Milky Way 21-10:682'FNL, 1824'FWL This well may be use to reach oil and gas resources that are located partially or entirely under the surface property of another landowner. • Lehigh Enterprises Acquisition Corp. April 10,2007 Page 2 3. KMG may drill one directional well to accommodate your request for directional drilling to legal drilling window locations on your property.The surface location for this well is at KMG Milky Way 18-10: 671'FNL and 1796'FWL and the bottom hole location will be at 1320'FNL and 1320'FWL respectively. 4. 1CMG may drill the one well described in paragraph 3 directionally at its expense. 5 1CMG will pay$25,000 total to compensate you for any and all surface damages, • including the use of oil and gas operations areas,access ways,surface facilities such as tank batteries and separators, flowlines, and gathering lines. No other surface damages will be due or paid. 6. You will execute any COGCC property line waivers if necessary,as well as other Oil and Gas Conservation Commission waivers that may be necessary to drill in the locations specified in Paragraph 1,2 and 3 of this surface agreement within three weeks of the execution of this agreement. 7. After the execution of this surface agreement,KMG will seek to enter into a final amended surface use agreement with you as soon as reasonably possible,however, this letter grants KMG your consent to begin operations on your property before that agreement is finalized. KMG may use this surface agreement to show the GOGCC that we have held consultation and that you have agreed to the surface locations described above. • • • • Lehigh Enterprises Acquisition Corp. April 10,2007 Page 3 If you agree that this surface agreement accurately reflects our understanding,please sign and date both originals of this surface agreement in the space indicated below, return one to me in the enclosed self-addressed stamped envelope,and retain one for your files. Do not hesitate to contact me if you have any questions. THIS OFFER IS GOOD FOR TWO WEEKS FROM THE DATE OF THIS LETTER Sincerely, Kerr-McGee Oil&Gas Onsh LP Terry D. nri t Landman alist Si ed: t\ gn • Ron$ilmes Title: Assistant Secretary Date: '+ 16(ul cc: Joseph Lorenzo • • iR",.. : t ;41.+ , I' S' i ja r 17 ! 8e 7 •gq i k 1. t h s 2 t... a " ! 44 , b 01 P !. f;. T I- " _ BT. '~ '• i j: tt > ii I \ F. I .. .ht, :a ` • x' ,. 7 i S8 . a. .L P « tam "�\ ' P .. # ,ww • 9 y : u A7.1: . i d i 1e rFT W... " y , f 1-,,i 'Al . I . f?! :4 *`- ' \ _ ,- k a I! } ;.. ! r f • � . � . . Ill • is e • CERTIFICATE OF CONVEYANCES WELD COUNTY • STATE OF COLORADO DEPARTMENT OF PLANNING SERVICES COUNTY OF WELD Lawyers Title Insurance Corporation hereby certifies that it has made a careful search of its records and finds the following conveyances affecting the real estate described herein since August 30, 1972, and the most recent deed recorded prior to August 30, 1972. LEGAL DESCRIPTION Open Space Tracts as shown on the Plat of Western Dairymen Cooperative, Inc. PUD recorded July 25, 2005 at Reception No. 3306003, County of Weld, State of Colorado. CONVEYANCES (If none appear, so state): Reception No. 1072223 Book 1258 Page 508 Reception No. 1592877 Book 671 Reception No. 2166213 Book 1220 • Reception No. 2674187 Book None Included for information Reception No. 2674822 Book None Included for information Reception No. 2914198 Book None Reception No. 3001806 Book None Reception No. 3139163 Book None Reception No. 3153217 Book None Reception No. 3274587 Book NONE This certificate is made for the use and benefit of the Department of Planning Services of Weld County, Colorado. This certificate is not to be construed as an Abstract of Title, Opinion of Title or a Guarantee of Title and the liability of Lawyers Title Insurance Corporation is hereby limited to the fees paid for this Certificate. In Witness Whereof, Lawyers Title Insurance Corporation, has caused this Certificate to • be signed by its proper officer this 2nd day of July, 2008, at 7:00 am. • • • Order No. 52-0004831 Lawyers CJTitlle �/Insurrrance Corporation/ By - 'll' Cie � PO'G/OM Authorized Signature • • _ _ � t0 DEC 141949• e Reception No.1.�.l �r 2 .t3 ANN FPQL Recorder. r e6 • aK • SNOW ALL MEN DY THESE PRESENTS. That Jesse J. Peek and'Prank Hart-tent Jr. as executorsof the Estate of Alice E. Jewett, Deceased; -- -- , of the -- County of :ou1:!er and State,of Colorado, fortheconsiderationot thirty-seven thousand (D7,0E0.0')) -- -- Dollar*. In land paid,hereby sell and convey to J. I'. Canenisch and iltry 4 Ca;aenisch -- of the _- County of aetxl .and State of Colorado. the following real property,situate ha the -- County of :"old and State of Colorado,to-wit: The east half (ED of the northwest quarter (MD; and, the northeast quarter (IIE% all in section ten (10), township two (2) north, rangy: sixty-eir'ht (GE) west of the 6th P. 1;., Yield County, Colirado, fogetter with all ::itch and water rllght9 in any way connected with or apnertatning to said land inci- ling five (5) shares of the capital stock of The Rural :itch Company; oat 'orether with all imnmv'-ments there on located. The above described property is h;•aeby expressly .''ea•.tr.: 'n loss unto the parties of the second part, not in tenancy in co:imon, :-•at in join'. tenancy, the survivor of then, their ass-Lens and the !heirs and assirus of such survivor forever. This deed is e.x:'::t.ed in accordance with the authority granted to the executors in the last will an! tester::ent of Alice `;. Jowet`., Incensed, dully admitted to probate in the County ":curt of Iloulf.er County, :o1-,rxio, on the 7th rlay, of September, .. . 19h9. The authority as c n'.ained in said will is as foll,rrs: - 11 J'1'!!: I authorize and-empr.::.r ::5/ e;ec::rjis, ...r•einarter • m-ted, and the survivor of them, to sell an! dispose of all or any of the real and ,-.ersonal property of-which I snail -lie seized or possessed, n.t. public or private sale, at such times and on ouch terms and earl-ii tines as they shall deep :hoot or proper, and to execute, - acknowledge a:,l deliver all proper in•itings, deeds of convesanncc and transfers tf�e,efor.n - • al I� D 1a I 1,4, , J with all its appurtenances,and warrant the title to the nine,soh act to any lien resulting from om the ircl :lion of s:.ii •,ronerty in the-Northern Colorado '',later Conservancy -its trict, Iand except right of way over the NE4 as conveyed by .feed recorded in nook 10211, page 101, Weld County records. 3r ,' v� jrj L`a 1', ' it: Fr- "- Signedanddeli'erid alb 29th ago! November'Y ,A.D.19119 in the presence of An Executors of-the Estate - Alice E. Jewett Deceased.-...._..__....._._...._.._.J._..._ (SEAL) rf fiT'ATE OP COLORADO 1 Ceuaty of Poulder as xz R7iPE-4 y� v; rent w+a eekoowledged before The this 29th day of November • _ { t (, , 4it!n�r '71;; P ]g pad Frank Hartman, Jr„ as Executors of the Estate of 4 �, :1 ( �r+oRslyjal.eat Alice E. Jewett, deceased. �, J �'u J IA��S.�� ta,:`fc..3F' u — �,z✓t y,Kg W-45r,M1x l�'C� r RAp � ��C g q / �oaat- k - -"-J '�..: i< �..taYeeu°.'�ma°f t!p4K . A4 ra1l� .. e/'; o es...ises .F brio cart- : tea �i D3 �' JUL , ',2 7 K 671 Recorded at o'clock M.. ._ c •-$ C p A'I ea., sawn0• Reception No._. Yl9M��l.�f.. _.. _. _ _ -.liemrder. • • S. P. CAMENISCH and MARY M.J�AMENISCIt, c„•u o' whose address is Route 4, Longmont, I JUL- -'.' 1972 I :ul_ r Qo j ' County of Weld ,State of '" - 1 ' Colorado , for the consideration of FIFTY o THOUSAND AND NO/100 I dollars, in hand paid, hereby sells) and convey(s) to i DAVID E. CAMENISCU and GLORIA F. CAMENISCU, o in joint tenancy, i whose address is Route 4, Longmont County of o I• I o P. Weld , and State of Colorado, the following real property in the o + es s County of Weld ,and State of Colorado,to wit; O O The east half (E of the northwest quarter (Nrft) l A) ✓ of section 10, township 2 north, range 68 west of the 1 6th P.M. , EXCEPT rights of way as conveyed by deeds i� tn recorded in Book 270, page 486, and in Book 1358, page l J ' 46; easement as granted by Instrument recorded in .. Book 1358, page 47, and except parcel of land as con- veyed by Deed recorded under Reception No. 1558219, in 1 Book 636, Weld County, Colorado records; BUT TOGETHER WITH all ditch and water rights apper- taining to said premises including one and one-half (11/2) shares of the capital stock of The Rural Ditch Company; RESERVING, however, to the grantors an undivided • one-half interest in and to all oil, gas and other hydro- carbons underlying said premises for and during the : natural lifetime of grantors. with all its appurtenances,and u:urant(s) the title to the mane,subject o, any lien by reason of the inclusion of said premises in the Northern Colorado Water Conservancy District, The Longmont Soil Conservation District and the Longmont Fire Protection District, and the 1972 taxes. Signed this 30th day of June .- , 19 72. ' - f 1 '1'-.ct'r'l . '61 real J P came:,lsc'h. Mai-y' M. Camenisch. >>• ,t. : _ 4 . _ - „re, STATE OF COLORADO, "- County of Boulder, tax i The foregoing instrument was acknowledged before me this 30th day f �June , 1972 ,by J. P. CAMENISCH and MARY M. CAMENISCH. ' t,........ t . p 7,m,l'l'y Fttnrnhs4n expires July 14th, 1975. 'itlaiiipy hgnd and official seal. j - .1p' Notary Public slanticry_ckaoiryd arse.,.—I(lir natural person or persons here inners n m.or=iota;It by porenn noting In repreacnteUrs or ((Iel 1 Pup in' r aA isomer-W-rant then 14eert name ( nun a iy,cutnr atLorney-in-(act ar other ity r dewrlp- lionileuhnaminR irtnr n.rpc�atm Ism m;err name„r sueI,n mgr or'nio<en m,lb, precool or ahoy mrFer. _i.nun en I 1 No.897. Weirnntr Owl—Molt Eons—See.us.1.u.en.s.oar—sraala,d Publishing co_Ieal-l6 stoat Street,Denser,Comlwo 441 • _a 8 1220 REC 02166213 12/28/88 11x08_ $3 00 1/001 Y= AR21BId213 F 0045 MARY AMti'-FEH8RCTEIH C11BRE a RECORDER WELD COa• CO PUBLIC TRUSTEE'S DEED• Sale No. 2707 • THIS DEED h made December 27 .19 88 .between _ ANNE D. NYE as the Public Tluslec,of the County of WELD ,Colorado,and - .. MOUNTAIN EMPIRE DAIRYMEN'S ASSOCIATION, Inc., • a Colorado Corporation Purchaser. whose legal address is 12450 Washington Street, Thornton, Colorado 80241 WHEREAS, DAVID E. CAMENISCH and GLORIA P. CAMENISCH did.by Deed of'Rust dated June 15 ,19 83,and morded in the office of the Clerkiad I colder of the County of Weld ,Colorado,on July 26 ,19 83 ,In Bock 1003 ,Page ,(Film No. ,Reception No.1934785 I•convey to the Public Trustee,Initust,the property hereinafter described to secure the payment of the indebtedness provided In said Deed of Trust;and Whereas,a violation was made in cer lain of the terms and covenants of said Deed of Rust as shown by the notice of election and demand for sale filed with the Public Rustee,a copy thereof being recorded in the office of saidCount)Clerk and Recorder,the said propertywasadvenisedforsaleatpubitcauctionatthepiaceandinthemannerprovidedbl lawatdbyssidDeedofRust.ands copy of the notice of sale was in apt time mailed to the persons requited by statute,and said property was in pursuance of said notice soldto Mountain Empire Dairymen's Association, Inc. **** for the sum hereinafter set forth and acertificate of purchase thereof was made and recorded" for the benefit of Mountain Empire Dairymen's Association, Inc., a Colorado corporation and said properly not having been redeemed from said sale; Now,Therefore,the Public Rusteepursuant to the power and authority vested by law and by the said Deedofmsst as such Public Trustee and in consideration of the sum of Two Hundred and Eighty Two Thousand, Two Hundred and Seventy Six and 38/100 ($282,276.38) dollars,to the Public'Rusleepald by the said Purchaser,the receipt whereof is hereby acknowledged.conveys to the said Purchaser,the heirs.successors and assigns of the Purchaser,foment" all the right,title and Intern, Rich the Publiclkuslee acquiredpursuanttosaid Deedofltustiasedto she following described property situate loth. . County of Weld .Sete of Colorado,to wit: The FhNW4 and WIFNElr of Section 10, Township 2 North, Range 68 Vest of, the 6th P.M., County of Weld, State of Colorado **** a Colorado Corporation also known by street and number as n/a lb Have and to Hold the same unto the said Purchaser,and the heirs.successors and assigns of the Purchaser,forever. The singular shall include the plural and the plural the singular. Executed the day and year first above written. Public Tonto of'be County or Weld Sine of Colorado By Deputy Public Mite STATE OF COLORADO County of Weld In. . •.' . - .� y6 The foregoing instrument was acknowledged before me this 27th day F Decembe 141, ti v o /by Anne D. Nye asthe Public Dunce of the ( .4 JUNE 8 County of Weld ,State of Colorado. 471.1\%Iiel • r, -e`�+,:•2,c My commission expires r 1032 ..A b Witness my hand and official seal. °rasa 'In comities when boas and page cambers hat bus abotited. rv2U 9th Street, Greeley, CO 80631 .•• •eIf certificate bat beau wiped lenn'aod said nniteate of purchase was sniped to UsNaa wieaee)I If sale la es a esepontba.to fat%aimed corpontbs arid malt or iscoeparenan "'Cheap for Jul.,heap. No.30.Rev.288. PUBLIC TRUSTEES DEED Bradford Puwhsal.SW VIM Me..lalnced.COWIN 1101111di900 Ell � � • • omo ARTICLES OF MERGER• �n no ra ix m:c U T • COLORADO src:wnAar of STAn Pursuant to the provisions of Article 56 of Title 7 of the Colorado Revised Statutes Annotated, the .undersigned certify and agree as follows: 1. The names of the corporations merging axe: Dairy Farmers of America, Inc. a Kansas cooperative marketing association("parent"), and 1446it385{3 !S • tr $ R Western Dai rymen Cooperative, Inc.lnc. SECRETARY OF STATE a Colorado cooperative association esubsidiary _JD-1998 i 1:00:03 • 2. An Agreement and Plan of Merger (the "Merger Agreement") between the parent and the subtldissy has been approved, adopted, certified, executed and acknowledged by the parent and the subsidiary in accordance with Kansas and Colorado law. The Merger Agreement provides, inter olio, that (a) The subsidiary shall be merged into the parent, with the parent, Dairy Famltts of America,Inc.,being the surviving association. (b) The merger is effective upon filing a certificate of merger with the Kansas Secretary of State(tit "Effective Date") (c) As of the Effective Date, 100%of the subsidiary's equity shall be owned by the parent and the parent shall be the sole member of the subsidiary. On the Effective • Date,the subsidiary's equity shall be converted into the parent's equity on the books and records of the parent end ill the subsidiary's membership interests shall be cancelled,without any action by any holder thereof and without any consideration therefor. The parent's equity and membership interests outstanding as of the Effective Date shall be unaffected by the merger. (d) No changes were made to the certificate of incorporation of the parent, which shall be the certificate of incorporation of the surviving association. 3. The number of votes cast for the Merger Agreement by each voting group entitled to vote separately on the Merger Agreement was sufficient by that voting group. 4. 'the merger is effective as of the Effective Date. 11111111111111111111111111111111111111 III IIIII III!101 3. rmnn 2674187 02/19/1999 10:068 Weld County CO 1 of 3 R 16.00 D 0.00 JA Sukl Isukamoto awcn•A Acct •ti.3an • 1111111 11111 111111 11111 11111 11111111111111 11111 1111111 2874187 02/19/1999 10:06P Weld County CO 2 of 3 R 16.00 D 0.00 JR Sukl Isukamoto 5. The tame and address of the registered agent of the surviving entity in • Colorado Is CT Corporation Company, 1675 Broadway, Denver, Colorado 80202. The name and address of the principal office of the surviving entity is Dairy Farmers.of America, Inc.,Nosthpointe Tower, 10220 North Executive Hills Boulevard, Kansas City, Missouri 64153. Dated this /flt•Lday of July, 1998 DAIRY FARMER. OF RICA, INC. (SEAL) By: O E. Hannan t: (it Went and Chief Executive Officer A. l Daviavl A. Gelder Assistant Secretary WESTERN DAIRYMEN COOPERATIVE. INC. (SEAL) CC E. Haman tQLJCLJ? L • DavidA. Ge Assistam Setretny 510»3.$ 2 � ,• , OUb nm u,n,vm, in eniwwn IOlun own o Oct •ii•earl • � • STATE OF MISSOURI ) 1111111 1111111111 111 1111 1111111111 III IIIII IIII IIII • )aa, 2674167 02/19/1999 10:06A Weld County CO COUNTY OF PLATTE ) 3 of 3 R 16.00 D 0.00 JR Sukl Tsukenoto The foregoing instrument was acknowledged before me this li day of July,1998, by GARY E. IIANMAN, President and Chief Executive Officer of Dairy Farmers of America,Inc., a Kansas cooperative marketing association,on behalf of the association. Law.) go.t.) Notary Public My Commission-expires: • mug It.ort' Im�ri M hCfl1 o4o35.7:Ko • • STATE OF MISSOURI ) )ss. COUNTY OF PLATTE The foregoing instrument was acknowledged before me this I i)t day of July, 1998, . by GARY E.I{ANMAN,Chairman of Western Dairymen Cooperative,Inc.,a Colorado cooperative association,on behalf of the essociatlon. • &lidetfreL. otary Public' My Commission expires: . oAvw AGt1Wlle� County fitle MyOme nnMaen D4Oal Jima 05.MOO, • • • • • • ea7u.i 3 TOTAL P.08 • k" I sa a ��1��Hill 111111111111�� • ��III IIIII VII in 2874822 02/23/1998 10 131 ki Coun1Y CO • 1 of 1 R 8.00 D 0.00 JR Sukl Tsukamoto I . f �� . .. -. ?i. V ,440 IH I Ds*wamiirs ltit* CERTIFICATE' I ■ $, NATALIE MEYER , 9eoseta4y of Week oP £4 ,Qtah aP %Poach Iset4 os i* Lal Le AusereoiI a Pao As faoaana 1 1 Ma ce tcale have keen. `dtaa et coma ante cat late snag afe Pain to conlolm to tape. .. Mdecaadngy,, l/se undezarred, ly 1,4444 oP au aul/iolay ,pedtea( »1e im 4us, fd4Ned A CERTIFICATE OF MERGER I10 2 NON UUPLIFIED COOPERATIVE CORPORATIONS f MOUNTAIN EMPIRE DAIRYMEN'S ASSOCIATION, INC_, (COLORADO CORPORATION), INTO WESTERN ' DAIRYMEN COOPERATIVE. INC. (COLORADO CORPORATION). THE SURVIVOR `" .r .Ii= j.-E2 , it. SRZ %6' :" 1 *tale)) SECRETARY OF STATO • IDATED- JULY 31. 1987 I I • • • 1111111 IIIII 1111111 IIIII IIIII IIIII IIIII III IIIII IIII II11 2914198 01/04/2002 12:28P JA Suki Tsukamolo 198 • 1 of 3 R 15.00 D 0.00 Weld County Co QUIT CLAIM DEED (Statutory Form) Know all Men by these Presents, that Dairy Farmers of America, Inc., a Kansas cooperative marketing association, for the consideration of One Dollar and other good and valuable consideration, in hand paid, hereby sells and quit claims to Lehigh Enterprises Acquisition Corporation, a Delaware corporation, whose mailing address is 10220 N. Executive Hills Blvd.,Kansas City, Missouri, 64153, the following Real Property situate in the County of Weld and State of Colorado. (Assessor's Schedule Number 13131a2o3oox)1314ratoseel,ISJS,oreloel, )to wit: rantetel eo73rsfs tofezoot, 1315 ro o2oo3 r3r3,e rozeoS ,S1S,olozeo9 ins lotoxoo6 ir�,ow2 sot 2 tsii terezott, 121&4,.a•to t3w,o 1eo4-;,pn101010oq See Attached Legal Description mitereieei with all its appurtenances subject to. Dairy Farmers of America, Inc. is the owner of the above referenced property by merger. Signed and delivered this Alt day of December, 2001 • DAIRY FARMERS OF AMERICA, INC. ,1" :� try 6UJá'JULAJ sBr • t David A Geisler ,y Corporate Vice President/Legal Pr,p,..sd 6y Rn4.Retum to:Pete Bodonyi, Escrow Officer Lender Recording Services 22350 Westwood Ave Cleveland,OH 44126 440-333-3400 1111111 11111 11111111111 11111 111011111 III 11111 HEMP I 11111 2914198 01/04/2002 12:28P JA Suki Tsukamoto • 2 of 3 R 15.00 D 0.00 Weld County CO STATE OF MISSOURI ) ) ss. COUNTY OF PLATTE ) The foregoing instrument was acknowledged before me this 23 t'", day of December,2001,by David A. Geisler, as Corporate Vice President/Legal of Dairy Farmers of America, a Kansas cooperative marketing association. Witless my hand and official seal, MOT MOTAIRTPEOUC rat(11WOCR1 *Commission Expires M1O0MMINONt0CR 0CLJti71Ri D A Y Notary Public Colorado Quitclaim (Welt) • • • 1111111111 1111111111111111111111111111111111111111111 2914198 01/04/2002 12:28P JA Suld Taukamoto • 3 of 3 R 13.00 D 0.00 Weld County CO Legal Description A tract of land located in the N %2 of Section 10,Township 2 North, Range 68 West of the 6`s P.M., Weld County,Colorado3 more particularly described as follows: Commencing at the Northwest corner of Section 10 and considering the North line of the West Half of the Northwest Quarter(W 1/2NW 1/4)to bear North 89° 01' 55" E with all other bearings relative thereto: Thence N 89° 01' 55" E, 1324.07 feet to the Northeast corner of the West Half of the Northwest Quarter(Wl/2NW1/4); Thence S 00° 31' 00" E, 88.59 feet to the South right- of-way line of Colorado State Highway 119; Thence continuing S 00° 31'00"E, 894.95 feet to the True Point of Beginning; Thence N 89° 01'39" F,2645.93 feet to a point on the East line of said property and the East line of the West Half of the Northeast Quarter (W 1/2NE1/4)of Section 10; Thence along the East line of said West Half S 00° 35' 02" E, 156.94 feet;Thence continuing S 00° 35'02" E, 1496.35 feet to the East One- Sixteenth(E1/16)corner of Section 10, a#5 rebar with cap (LS #6630)replaced with a #6 rebar with 3" alum. cap LS #7239; Thence S 89° 05' 35" W, 1323.30 feet to the Center Quarter Corner Section 10, set#6 rebar with a 3" alum. cap, LS#7239, on the North-South Centerline of Section 10, 4.00 feet south of found Witness corner(#4-rebar with alum. cap LS #6716); Thence S 89° 05' 07" W, 1324.55 feet to the West one- sixteenth (W1/16) corner of Section 10, a#6 rebar with a 3" alum. cap, LS #11434; Thence N 00° 31' 00" W, 1395.57 feet; thence continuing N 00° 31' 00" W, 254.89 feet • to the True Point of Beginning. Colorado Quitclaim (Welt) • 3 1111111111111111111 Ihiflll 11111111111 III 111111111 III, • 8,006 3001806 11/04/2002 11:13A Weld County,CO 1 of 1 R 6.00 D 21.60 J.A."Sukl"Teukamoto WAllftANTY DEED • THIS DEED, Made this day of October 16, 2002, between LEHIGH ENTERPRISES ACQUISITION CORPORATION a corporation duly organised and existing under and by virtue of the laws of the State of DEWGRE, grantor, and \I OCON GROUP, LLC whose legal address is PO BOX 93, LONGMONT, COLORADO 80502 of the County of BOULDER and State of COLORADO, grantee: WITEESSETH, that the grantor, for and in consideration of the sum of 9215,000.00 Dollars, the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confine unto the grantee, his heirs and assigns forever, all the real property, together with improvements, if any, situate, lying and being in the County of MELD and State of Colorado, described as follows: LOT 1, BLOCK 3, WESTERN DAIRYMEN COOPERATIVE, INC., N COUNTY OP WELD, sw STATE OP COLORADO. Reserving unto Grantor, its heirs, successors and assignees, all mineral rights, including all ores, metals, and minerals of any kind and character including rights Ilk to sand and gravel, coal, and to oil, gas, and other like substances. Together with the rights of ingress and egress for the purpose of exploring, mining, drilling enough of the surface of the same as may be necessary for the proper and convenient working of such minerals and substances. also known by street and number as 3529 STAGECOACH ROAD, LONGMONT, COLORADO 80504 TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining and the reversion and reversions, remainder end remainders, rents, issues and profits thereof; and all the estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of, in and to the above • bargained premises, with the hereditaments and appurtenances. TO HAVE AND TO HOLD the said premises above bargained and described, with the appurtenances, unto the grantee, his heirs and assigns forever. And the grantor, for itself, and its successors, does covenant, grant, bargain and agree to and with the grantee, his heirs and assigns, that at the tine of the annealing and delivery of these presents, it is well seized of the premises above conveyed, has good, sure, perfect, absolute and indefeasible estate of inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in manner and fora aforesaid, and that the same are free and clear from all former and other grants, bargains, sales, liens, taxes, assessments, encumbrances and restrictions of whatever kind or nature soever, AND EXCEPT FOR TAXES FOR THE CURRENT YEAR, A LIEN OCT NOT YET DUE OR PAYABLE, EASEMENTS, RESTRICTIONS, COVENANTS AND RIGHTS-OF-WAY OF RECORD, IF ANY, The grantor shall and will WARRANT AND FOREVER DEFEND the above-bargained grandees in the quiet and peaceable po ion of the grantee, his heirs and assigns, against all and every person or persons lawfully claiming the whole or any put thereof. The singular meter shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. II WITNESS WHEREOF, The grantor has caused its corporate some to be hereunto subscribed by its President, and its corporate seal to be hereunto af£ired, attested by its Secretary, the day and year first written. Attest: ��J"L-- LBBI0R ENTERPRISES ACQUISiTION CCSICSMION a Delaware Corporation Secretary bi VI e President STATE OF F9IFI44bP Missouri) l ISS. coon OF heithiil Greene I. ELLEN F.PAINTER Notary Public-State of 14.111E,kle -!! , The foregoing instrument was acknowledged before m on October 16, 2002, County Of CreteN fr &Z - :otof2.1 1 as 1 CQ 41y Commission EXPIF0 Jun Y,'20� byL Pt t I Yreaitlent n as • and S • V Iv n [laL��Q.C� 'CL11�lfJlsl Secretary of ISHIGH ENTERPRISES ACQUISITION % ? ` • ' • CORPORATION a elaware Corporation ';/'... 1....* to Witness my hand and official seal. /T Ny commission expires: Notary Public: Q&4AJ _J'.ir-eu- ') 110108 ICorporatienl Camel 183015E DOC FEE $ 21.50 /eke wK 12/19/2003 11:00 •03-651-1320 DYER REALTY INC • PAGE 01 1. 111111IIIII IIII LINE IIII Hill IIIII III 1111111III '1,..... CO ; of 1 139163 R1 6.00 2003 0 0.00 9Steve Moreno Cler Weld k&Recorder • wean ►NTY D$1m17 THIS DEED, Nada this day of October 1.6, 2002, between DAIRY Paawaaa OP AMERICA, INC. A RANIAl COOPERATIVE NARRRTTNO AeaoCxATTOM oorporatiea duly organised and existing under and by virtue of the lag of the ate of DIGIOAI, grantor, and OCON GROUP, LLC whose legal address is PO BOX 03, LONGMONT, COLORADO 00502 of the County of BOULDER and State of COLORADO, grantee: IIITIRMMTII. that the grantor, for and io mseiderat ion of the ma of 5215,008.00 Dollars, the receipt and sufficiency of which is hereby acknowledged, has granted, bergeined, cold end conveyed, and by thee• presents don grant, hasgain, sell, convey and confine unto the grantee, his heirs and anion' forever, all the real property, together with improvements, if any, eituEe. lying and being in the County of IRO and State of Colorado, deocrlhed es follows: LOT 1, BLOC( 3, WESTERN Maranon coo►lnTTVE, INC., COUNTY OP MILD, STATE OP COLORADO. NO DOC FEE REQUIRED. THIS DEED BEING RECORDED TO CORRECT GRANTOR'S NAME AS SHOWN^ON WARRANTP.DEED"RECORDED NOVEMBER 4, 2002 AS RECEPTION NO. 3001806. also known by street and number an 3529 STAGECOACH ROAD, LONOMONT, COLORADO 00304 TONTIIR with all and singular the bereditaeente and appurtenances thereunto belonging, or in anywise appertaining and the reversion end rewerelone, rwindet and realnderr, rents, teems and profit thereof! and all the estate, right, title, interest, demandand data and whatsoever of the grantor, either in law or equity, of, in to the above bargained predsee, with the hereditament, end appurtenances. TO HAVE AID TO 'OLD the laid crashes chews bargained and described, with the appurtenances, unto the grantee, his hairs and assigns forever. And the grantor, for ieelf, and its eunmeeora, dose covenant, grant, bargain end agree • to end with the grantee, hie hair. and assigns, that at the time of the unsealing and delivery of these present, it is well seised of the praise. above conveyed, hie goad, sure, perfect, absolute and indefeasible estate of inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the sane in sander and fort eforeiid, end that the seas are free end clear free all forcer and other grant!, bergalna, sales, lien, tau, ussssaents, enmabsances and restriction: of whether kind or nature enever, am - txaPt f Rpicric, ggiTT MG DM COMMIT M, A MN ROT NOT YET Ogg OR SAMNA, RAPIMMITA, RIellucrIDYS, CORRAYTS AND RI r ssd o, Ir an, the at AL-AN-r 11 INNR=R MID reav6N maim the above-bargained premiene la the quiet and peaceable passedia e wi8's :hie heirs end aesigne, ',plait all end every person or persons lawfully claiming the Mole;odg en t The singular nweber shall include the plural, the plural the singular, and the use of any ,, gipi*ball a to ell gender.. L Y 8 renter bee wed its corporate rase to hereunto subscribed by its President, • it at e a be Se bereunte affixed, attested by !t BSecretary, the day am year Sint written. s eat \ DAIRY rARINR3 Q•'NaltICA, DN. ' A KANSAS COCPDOATIVI IESXSTINO As80CIATION secretaryAsst. ieetary M / /`9 , (l /) t David A. Ceisler said MISSOURI Corporate Vice President/Legal Una Of d6%dF%dbr 2 Pt ATTE 188. many 0! ODYg[ 1 the foregoing instrument wee er]nwledged before as on October 11, 2802, by David A. Geisler as SQUAW Corporate Vice President/Legal am David G. Meyer as Asst.sashes!•I/,o/nf AM DAIRY Mane CI U INC. lame my /hand and official seal. `-�6C�l�fh.- a My nomeission expires: Batary Publics — WONOO ICerparatlonl Cased 11301W coo rG s 21.50 'NOTARY SEAL' /e<2 Marsha A.Irwin,Notary Public - Clay County,State of Missouri My Commission Expires 10!312000 11110111111 IOIl 1.111111111111111 III 11111111111 • 3274587 04/05/2005 02:02P Weld County, CO 581 1 of 2 R 11.00 D 0.00 Steve Moreno Clerk&Recorder Recorder BARGAIN AND SALE DEED • KNOW ALL MEN BY THESE PRESENTS,That LEHIGH ENTERPRISES ACQUISITION CORPORATION, a Delaware corporation Slate of DELAWARE ,for the consideration of CONSIDERATION UNDER FIVE HUNDRED dollars, in hand pnid.hereby.NCll(s):uul convey(s)1n MILKY WAY OWNERS' ASSOCIATION, INC. whose legal address is c/o MARVIN L. DYER 520 MAIN STREET SUITE A LONGMONT, CO 80501 • County of ,and State of ' the following real property.situate in the County of WELD and Slate of Colorado,to wit: A PARCEL OF LAND DESCRIBED AS 19.53 ACRES OF OPEN SPACE AS SHOWN ON THAT CERTAIN PLAT RECORDED JANUARY 21, 1998 AS RECEPTION NO. 2590085 IN THE REAL PROPERTY RECORDS OF WELD COUNTY, COLORADO MORE PARTICULARLY DESCRIBED ON "EXHIBIT A" ATTACHED HERETO. • • also known by street and number as assessor's schedule or parcel number: a4 hi CSw14..; A .. �it•CM?..JsJ 2- with all its appurtenances. • a.. Signed and delivered this /L day of MARCH, 2005 ,'ti�!f'•' /IIIII14IIIIDRI . LEHIGH ENTERPRISES ACQUISITION CORPORATION, a Delaware corporation Marvin L. Dyer, Registered Agent by; J re 4)4-1-? ) 19A40 w;- 520 Main Street, Suite A Ailatiele��iat/ Longmont, CO. 80501 STATE OF Ty) 1 - ss. County of �51QR,tN�ff The foregoing instrument wasacknowledged before me this ) Ia day of NutiAt ifki 1005, BERNARD BROWNELL as VICE PRESIDENT for LEHIGH ENTERPRISES ACQUISITION CORPORATION, a Delaware corporation. Ellen F Pails( Noisy PuCEt•Noisy Set Witness my hand and official seal. • My commis ion expires &Me Wlbran ".Comb .9r F 3. PaL,, , Notary Public •Il in Dosser.in,vn"Cily ani Name and Addrol of Parson Coming*wig Ceased I<PI Dn.criTion f4 71.23.106.l.CF.st No.901.Rey.4.94. BARGAIN AND SALE DEED(SIalulury Burn) 111,i Bre,lfmd Publishing,1743 Wang Si,Danner.CO 80203—13031292-2500-9.94 �� 1 o.suI „ ,,,,, 11 1�I.r-.�-`.Y1V ANYdHfI] tlNItl33N29N3 113NJId 11_ �y *MO= ICIMANI Iris Toni��np s1,1 � 1 i 4 o ! i r ;-,5i ,.-tri 1. Ifl 1 V' YS al t 9+iRR Y ea • Eas i nt gYi Ii n 4rIa , ,m ...,..14".,:.; 410.11lini . 5 '‘.":".46°"70.1a7.1 `pe brie . 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