Loading...
HomeMy WebLinkAbout840325.tiff RESOLUTION RE: APPROVAL OF USE BY SPECIAL REVIEW FOR OIL AND GAS PRODUCTION IN THE R-1 DISTRICT - R.A. RESOURCES, INC. WHEREAS , the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS , the Board of County Commissioners held a public hearing on the 30th day of May, 1984 , at the hour of 2: 00 o' clock p.m. in the Chambers of the Board for the purpose of hearing the application of R.A. Resources, Inc. , P .O. Box 2475 , Greeley, Colorado 80632 , for a Use by Special Review for oil and gas pro- duction in the R-1 District on the following described real estate, to-wit: E2 SEa , Section 33 , Township 6 North, Range 65 West of the 6th P .M. , Weld County, Colorado WHEREAS , Section 24 . 4 . 2 of the Weld County Zoning Ordinance provides standards for review of said Use by Special Review, and WHEREAS , the Board of County Commissioners heard all of the testimony and statements of those present, has studied the re- quest of the applicant and the recommendations of the Weld County Planning Commission and all of the exhibits and evidence presented in this matter , and having been fully informed, finds that this request shall be approved for the following reasons: 1 . The submitted materials are in compliance with the application requirements of Section 24 . 7 of the Weld County Zoning Ordinance. 2 . It is the opinion of the Board of County Commissioners that the applicant has shown compliance with Section 24. 4 . 2 of the Weld County Zoning Ordinance as follows: a. All mineral resources are fixed in location. The mineral extraction industry is, therefore, restricted in its operations to those areas where the resources lay. The subject site is zoned residential (R-1) but the site is not platted for residential devel- opment. The Comprehensive Plan policies encourages mineral extraction prior to residential develop- ment. Residential development on the subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan. b. The proposal is allowed as a Use by Special Review permit in the Residential Zone District. -- \I%i l��/ LHR 308 840325 Page 2 RE: USR - R.A. RESOURCES, INC. c. The attached Operation Standards will make the proposal compatible with existing and future de- velopment of the surrounding area as permitted by the existing zoning and with future develop- ment as projected by the Comprehensive Plan of the City of Greeley. d. The Greeley Planning Commission recommended con- ditional approval at its meeting on April 10 , 1984 . The concerns of the Greeley Planning Commission are addressed in the Operation Standards. e. Use by Special Review Operation Standards provide adequate protection of the health, safety and wel- fare of the neighborhood and County. NOW, THEREFORE , BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado , that the application for a Use by Special Review for oil and gas production in the R-1 Dis- trict on the hereinabove described parcel of land be, and here- by is , granted subject to the following conditions: 1 . The attached Operation Standards for Use by Special Review be adopted and placed on the Use by Special Review plat prior to recording. 2 . No building or electrical permits shall be issued for the Use by Special Review Permit area until the Stan- dards for the Use by Special Review have been placed on the Use by Special Review plat and the plat has been delivered to the Department of Planning Services office. 3 . A note reserving twenty (20) feet of additional right- of-way on Weld County Roads 62 and 43 shall be placed on the Use by Special Review plat prior to recording said plat. The City of Greeley has requested the reservation for the future development of both County Roads. 4. The applicant shall submit plans for berming of tank battery cluster to the Weld County Health Department and Department of Planning Services . The plans shall be approved and the berm corrected, if necessary, prior to scheduling a meeting before the Board of County Commissioners. 5. Prior to scheduling a meeting before the Board of County Commissioners , the operator shall submit a copy of a policy of insurance in the amount of five hundred Page 3 RE: USR - R.A. RESOURCES , INC . thousand dollars ($500 ,000 . 00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out of the drilling , maintenance, production or other work done with respect to such proposed oil or gas well. Such policies shall be written by a company authorized to do business in the State of Colorado. Evidence of the insurance policy shall be filed with the Depart- ment of Planning Services. In case the insurance policy required shall lapse or become void for any reason whatsoever, the Use by Special Review Permit shall cease to exist until a new insurance policy shall be provided and filed with the Department of Planning Services. All well activity shall be shut-down and all operations and production thereof shall be suspended and discontinued, consis- tent with safety consideration, until the operator provides evidence of insurance in the prescribed amount. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 30th day of May, A.D. , 1984 . BOARD OF COUNTY COMMISSIONERS ATTEST{'�j�tI 4-4 WELD COUNTY, COLORADO/J Weld County Clerk and Recorder � o and Clerk to the Board Norman Carlson, Chairman cryw7w4 ai� � EXCUSED DATE OF SIGNING - AYE eputy Count`yy (ll(((Clerk J elinne Johnson, Pro-Tem APPROVE ° AS TO FORM: 01411/ G R. rant���� Atto e County y k Carlso ttc T)27.9;a7-01, hn T. Martin OPERATION STANDARDS R. A. Resources, Inc. U.S.R. - 623:84: 19 1. The permitted use shall be oil and gas production facilities as described in the submitted application materials; and as located on the Use by Special Review plat. 2. The oil and gas production facilities shall comply with the City of Greeley's Ordinance pertaining to oil and gas production. 3. All tank batteries shall be designed to meet the following standards: - The tank battery cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. - A six (6) foot chain link fence with three (3) strand barbed wire top shall enclose the tank battery cluster. 4. All production equipment fixed at the site with a source of ignition, including heater/treator separators, shall be placed a minimum of 75 feet from the well head and tank battery cluster. The well head shall be a minimum of 75 feet from the tank battery cluster. 5. The applicant shall comply with all Eaton Fire Protection District requirements. 6. The operator shall provide the Eaton Fire Protection District a list of four (4) names, phone numbers and addresses of responsible parties it can contact in case of an emergency. 7. Smoking shall not be permitted at any well location or tank battery location at any time, and signs indicating such prohibition shall be placed on the well site and at the tank battery location. 8. Fire extinguishers shall be maintained on the well site at all times during drilling and production. 9. A metal sign shall be placed on the property indicating the name and telephone number of the person(s) to contact in the event of an emergency. 10. All land within twenty-five (25) feet of any oil or gas, tank containing flammable or combustible materials, or other appurtenant well production equipment shall be kept free of dry weeds, grass, or rubbish. 11. A four inch header shall be laid over the top of the berm surrounding the tank battery, and an underground two-and-one-half inch line shall be attached thereto which shall extend from its connection with the header to a point two hundred (200) feet from the tank battery. The end of such line shall be clearly marked by a sign. She manner and method provided for r.onnection at said -end point shall be determined thy the Eaton Fire Protection District so that lire suppression chemicals may lie pumped through the line and header to extinguish fires in the tank battery. An alternate fire suppression method approved by the Eaton Fire Protection District may be substituted. 12. Permittee shall comply with the Drilling and Completion Policies of the Oil and Gas Conservation Commission dated March 19, 1984, _including tut not limited to the equipping of the bradenhead access to the annulus between the production and surface casing with a needle valve and gauge fittings to permit the observation of pressure. The Weld County Health Department may accompany inspectors of the Colorado Oil and Gas Conservation -Commission who are implementing the March 19, 1984 Policy as to the well permitted hereby. 13. Brine water produced at the site during oil and gas production shall be disposed of by formation injection or disposal into a commercial brine disposal site. 14. Drilling muds can be used as an agricultural enhancement. The drilling muds MUST be applied and disked into sandy soils with the landowners consent. 15. Upon cessation of the proposed use, the oil and gas production facilities shall be removed and the land shall be reclaimed to its' prior use. 16. the applicant shall comply with the design standards for the Use by Special Review, Section 24.5 et seq. , of the Weld County Zoning Ordinance. 17. The applicant shall comply with the Operation Standards for Uses by Special Review, Section 24.6 et seq. , of the Weld County Zoning Ordinance. 18. Representatives or members of the Weld County Health Department and Weld County Department of Planning Services shall be granted access onto the site at any reasonable time in order to insure the operations carried out on the site comply with the Operation Standards stated hereon and all applicable Weld County Regulations. 19. The Use by Special Review area shall be limited to the plans shown hereon and governed by the Standards as stated above and all applicable Weld County Regulations. Any material deviations from the plans and/or Standards as shown or stated above shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans and/or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 20. The property owner and/or operator of this operation shall be responsible for complying with all of the above stated Standards. Noncompliance with any of the above stated Standards may be reason for revocation of the Permit by the Board of County Commissioners. ADDITIONAL COMMENTS R. A. Resources, Inc. U.S.R. - -623:84: 19 The Use by Special Review area is in an Airport Overlay District area. No structure exceeds the maximum allowed elevation of 4,730 feet at the subject site. The Planning Staff Estimates the elevation of the tallest tank battery at less than 4,690 feet. HEARING CE.'PIFIrATION DOCKET NO. 84-27 RE: USE BY SPLLIAL REVIEW, OIL AND GAS PRODUCTION IN THE R-1 DISTRICT, R.A. RESOURCES, INC. A public hearing was conducted on May 40 , 1984, at 2:00 P.M. , with the following present: Commissioner Norman Carlson, Chairman Commissioner Jacqueline Johnson, Pro-Tem Commissioner Gene Brantner - Excused Commissioner Chuck Carlson Commissioner John Martin Also present: Acting Clerk to the Board, Mary Reiff Assistant County Attorney, Lee D. Morrison Planning Department Representative, Rod Allison The following business was transacted: I hereby certify that pursuant to a notice dated May 7, 1984, and duly pub- lished in the La Salle Leader on May 10, 1984, a public hearing was conducted to consider the application of R.A. Resources, Inc. for a Use by Special Review for oil and gas production in the R-1 district. Chairman N. Carlson commented on the fact that only four Commissioners were present and explained the pro- cedure to be used in the event of a tie vote. He also stated that the appli- cant could request that this hearing be continued to a time when all five Commissioners will be present. The applicant chose to continue with the hearing today. Lee Morrison, Assistant County Attorney, read this application into the record. Rod Allison, Planning Department representative, read the favorable recommendation of the Planning Commission into the record and stated that twenty Operation Standards are recommended in connection with this application. Keith Abbott, representative of R.A. Resources, Inc. , stated that the applicant has complied with all standards, rules, and regulations and said the Operation Standards have been or are being complied with. He stated that Operation Standard #11 does seem to present a problem and he was not sure it would be an effective method of fire protection. After discussion, Mr. Morrison suggested that Operation Standard #11 could be amended by adding, "An alternate fire suppression method approved by the Eaton Fire Protection District may be substituted." Further discussion was held concerning the zoning of this area. Commissioner C. Carlson moved to approve this Use by Special Review for R.A. Resources, Inc. , with Operation Standard #11 amended • as discussed. Commissioner Martin seconded the motion which carried unanimously. APPROVED: . BOARD OF COUNTY Ara ST: ate. a jw,to.� WELD COY COUNTY, Weld County Clerk and Recorder //-_ and Clerk to the Board ) Norman Carlson, airman c: EXCUSED DATE OF SIGNING pu unty C erk Jacqueline Johnson, Pro-Ten EXCUSED Gene �Rtner ChIC; Carlson �� TAPE #84-48 J T. Martin DOCKET #84-27 THR 308 A T T E N D A N t £ RECORD DATE: May 30. 1-984 TODAY ' S HEARINGS ARE AS FOLLOWS : Tbcket #84-30 - USR, Church in Residential Four Zone District - Steven Sears Docket #84-31 - USR, Mining permit for wet cut gravel pit - Zigan Sand & Gravel Docket #84-32 - USR, Mining permit for wet cut gravel pit - Weld County Corp. Locket #84-18 - COZ, A to I-3 - Patterson's T miping Services,� Inc. DockPLEASE writet 8or#84-27 print R legl & Gas ibly your name, addren in R-a sssandtth R.A.OCKED='�f (asclisted legibly above) or the applicant ' s name of the hearing you are attending. NAME ADDRESS HEARING ATTENDING 1) Z,- . lyhv)�:JL- c\G, l� R 1Ke-`>c.;v_...- iH0C Sre acs tisic t\� u �h k�dl qR5,,k, iO -Jor, i,L) <= p t H 51y - 3 / ' i �� ) % 17 7 �y / x� v 1 3--V- /it'- ‘'/ j/ (?,,,4777./ y >u : ,� � t - 3 i - Li 5 BEFORE THE WELD COUNTY, _COLORADO PLANNING COMMISSION RESOLUTION OF RECOMMENDATION TO THE BOARD OF COUNTY COMMISSIONERS Moved by Sharon Linhart that the following resolution be introduced far passage by the Weld County Planning Commission. Be it Resolved by the Weld County Planning Commission that the application for: L D T•; 774 cJ� CASE NUMBER: U.S.R. 623:84:19 NAME: R.A. -Resources Inc. �`� MAY 2 1984 i D ADDRESS: T.O. Box 2475, Greeley CO 80632 GREELEY, COLO. -REQUEST: Use by Special Review for oil and gas production in the R-1 district LEGAL DESCRIPTION: Ek SEA, Section 33, T6N, R65W of the 6th P.M. , Weld County, Colorado LOCATION: approximately 1Z miles east of Greeley; be recommended favorably to the Board of County Commissioners for the following reasons: THE WELD COUNTY PLANNING COMMISSION RECOMMENDS THAT THIS REQUEST BE APPROVED FOR THE FOLLOWING REASONS: 1. The submitted materials are in compliance with application requirements of Section 24.7 of the Weld County Zoning Ordinance. 2. It is the opinion of the Planning Commission that the applicant has shown compliance with Section 24.3. 1 et seq. of the Weld County Zoning Ordinance as follows: - All mineral resources are fixed in location. The mineral extraction industry is therefore restricted in its operations to those areas where the resources lay. The subject site is zoned residential (R-1) but the site is not platted for residential development. The Comprehensive Plan policies encourages mineral extraction prior to residential development. Residential development on the subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan. - The proposal is allowed as a Use by Special Review permit in a residential zone district. - The attached operatian standards will make the proposal compatible with existing and future development of the surrounding area as permitted by the existing zoning and with future development as projected by the Comprehensive Plan of the City of Greeley. - The Greeley Planning Commission recommended conditional approval at its meeting on April 10, 1984. The concerns of the Greeley -Planning Commission are addressed in the operation standards. - Use -by Special Review Operation Standards provide adequate protection of the health, -safety and welfare of the neighborhood and County. The Planning Commission recommendation for approval is conditional upon the following: 1. The attached Operation Standards for Use by Special Review be adopted and placed on the Use by Special Review plat prior to -recording. 2. No building or electrical permits -shall be issued for the Use by Special Review Permit area until the Standards for the Use by Special Review have been placed on the Use by Special Review plat and the plat has been delivered to the Department of Planning Services office. U.S.R. 623:-84: 19 R.A. Resources Inc. April 17, 1-984 Page 2 3. A note reserving twenty (20) feet of additional tight of way on Weld County Roads 62 and -43 shall :e placed on the Use by Special Review plat prior to recording said plat. The City of Greeley has requested the reservation for the future development of both County Roads. 4. The applicant shall submit plans fox berming of tank battery -cluster to the Weld County Health Department and Department of Planning Services. The plans shall be approved and the berm corrected, if necessary, prior to scheduling a meeting before the Board of County Commissioners. 5. Prior to scheduling a meeting before the Board of County Commissioners, the operator shall submit a copy of a policy of insurance in the amount of five hundred thousand -dollars ($500,000.00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out of the drilling, maintenance, production as other work done with respect to such proposed oil or gas well. Such policies shall be written by a company authorized to do business in the State of Colorado. Evidence of the insurance policy shall be filed with the Department of Planning Services. In case the insurance policy required shall lapse or become void for any reason whatsoever, the Use ly Special Review -Permit shall tease to exist until a new insurance policy shall be provided and filed with the Department of Planning Services. All well activity shall be shut-down and all operations and production thereof shall be suspended and discontinued, consistent with safety consideration, until the operator provides -evidence of insurance in the prescribed amount. Motion seconded by: Lydia Dunbar Vote: For -Passage Against Passage Doug Graff Lydia Dunbar Paulette Weaver Sharon Linhart Louis ltademacker Jack -Holman The Chairman declared the -Resolution passed and ordered that a certified copy be forwarded with the file of this case to the 2oard of County Commissioners for further -proceedings. CERTIFICATION OF COPY I, Bobbie Good, Recording Secretary of the Weld County Planning Commission, do hereby certify that the above and fore-going Resolution is a true copy of the -Resolution of the Planning Commission of Weld County, Colorado, adopted on April 17, 1984 and recorded in Book No. 1X of the proceedings of the said Planning Commission. Dated the 19th day of April, 1984. cti c ne,-5Z Secretary OPERATION STANDARDS R. A. Resources, Inc. U.S.R. - 623:84: 19 1. The permitted use shall be oil and gas production facilities as described in the submitted application materials; and as located on the Use by Special Review plat. 2. She oil and gas production facilities shall comply -with the City of Greeley's Ordinance pertaining to oil and gas production. 3. All tank batteries shall be designed to meet the following standards: - The tank battery 'cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. - A six (6) foot chain link fence with three (3) strand barbed wire top shall enclose the tank battery cluster. 4. All production equipment fixed at the site with a source of ignition, including theater/treator separators, shall be placed a minimum of 75 feet -from the well head and tank battery cluster. The well head shall be a minimum of 75 feet from the tank battery cluster. 5. The applicant shall comply with all Eaton fire Protection District requirements. 6. The operator shall provide the Eaton Fire Protection district a list of four (4) names, phone numbers and addresses of responsible parties 3t can contact in case -of an emergency. 7. Smoking shall not be permitted at any well location or tank battery location at any time, and signs indicating such prohibition shall be plated on the well site and at the tank battery location. 8. Fire extinguishers shall be maintained on the well site at all times during drilling and production. 9. A metal sign shall be placed on the property indicating the name and telephone number of the person(s) to contact in the event of an emergency. 1D. All land within twenty-five (25) feet of any oil or gas, tank containing flammable or -combustible materials, or other appurtenant well Production equipment shall be kept free of dry weeds, grass, or rubbish. 11. A four inch header shall he laid over the top of the berm surrounding the tank battery, and an underground two-and-one-half inch line shall be attached thereto which shall extend from its connection with the header to a point two hundred (200) feet from the tank battery. The end of such line shall be clearly marked by a sign. The manner and method provided for connection at said end point shall be determined by the Eaton Pyre Prevention District so that Tire suppression chemicals may be pumped through the line and header to extinguish fires in the tank battery. 12. Permittee shall comply with the Drilling and Completion -Policies of the Oil and -Gas Conservation Commission dated March 19, 1984, including tut not limited to the equipping of the bradenhead access to the annulus between the production 2nd surface easing with a needle valve and gauge fittings to permit the observation of pressure. The Weld County Health Department -may accompany inspectors of the Colorado Oil and Gas Conservation Commission 'who are implementing the March J9, 1984 Policy as to the well permitted hereby. 13. Brine water produced at the site during oil and gas production shall Be disposed of by formation injection or disposal into a commercial brine disposal site. 14. Drilling muds can be used as an agricultural enhancement. The drilling muds MUST he applied and disked into sandy soils with the landowners consent. 15. Upon cessation of the proposed use, the oil and gas production facilities -shall be removed and the land shall be reclaimed to its' prior use. 16. The applicant shall comply with the design standards for the Use by Special Review, Section 24.5 at seq. , of the Weld County -Zoning Ordinance. 17. The applicant shall comply with the Operation Standards for Uses by Special Review, Section 24.6 et seq. , of the Weld County Zoning Ordinance. 18. Representatives or members of the Weld County Health Department and Weld County Department o₹ Planning Services shall be granted access onto the -site at any seasonable time in order to insure the operations carried out on the site comply with the Operation Standards stated hereon and all applicable Weld County Regulations. 19. The Use by Special Review area shall be limited to the plans shown hereon and governed by the Standards as stated above and all applicable Weld County Regulations. -Any material deviations from the plans and/or Standards as shown or stated above shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans and/or Standards are permitted. Any other changes shall he filed in the office of the Department of Planning Services. 20. The property owner and/or operator of this operation shall be responsible for complying with all of the above stated Standards. Noncompliance with any of the above stated Standards may be reason for revocation of the Permit by the Board of County Commissioners. ADDITIONAL COMMENTS R. A. Resources, Inc. U.S.R. - 623:84: 19 The Use by Special Review area is in an Airport Overlay District area. No structure exceeds the maximum allowed elevation of -4,730 -feet at the subject site. The Planning Staff estimates the elevation of the tallest tank -battery at less than 4,690 feet. LAND USE APPLICATION SUMMARY SHEET Date: April 17, 1984 CASE NUMBER: USR-623:84:19 NAME: R.A. Resources, Inc. ADDRESS: P.O. Box 2475, Greeley, Color-ado REQUEST: A Use by Special Review Permit for oil and gas production facilities in the R-1 Zone District LEGAL DESCRIPTION: East 1/2, Southeast 1/4, Section 33, Township 6 North, Range 65 West of the 6th Y.M. , Weld County, Colorado LOCATION: Approximately 1-1/2 miles east of Greeley; north of WCR 62 and west of WCR 43 SIZE OF PARCEL: 80 acres, more or less POSSIBLE ISSUES SUMMARIZED FROM APPLICATION MATERIALS: The criteria for review is listed in Section 24.3 of the Weld County Zoning Ordinance. The facilities are in place on the property. The Planning Staff gave the applicant a violation notice on March 6, 1984 and explained the Use by Special -Review procedure to the applicant. The property is zoned Residential One (R-1) , but is not platted into lots. Please review field check for more site detail. She gas from this well would be piped to the Colorado Gathering processing plant. The pipeline would -go east from the -oil well along Weld County _Road 62, and then north along Weld County Road 43 to the plant. The City of Ureeley has not reviewed this case and staff has not -received the City's written recommendation as of yet. The Planning Staff has not received any objections to this proposal. RA:dg FIELD CHECK FILING NUMBER: USR-623:84:19 DATE OF INSPECTION: April 5, 1984 NAME: R.A. Resources, Inc. REQUEST: A Ilse by Special Review Permit for oil and_gas production L{GAL DESCRIPTION: E; SE'. Section 33, T6N, R65t4 of the 6th P.M. , Weld County, Colorado LAND USE: N Cropland E Cropland --------- S Shave Pita eedlot. farm residence. Weld County Road 62 W rrnpland u��• (R—L' LOCATION: Approximately 1.5 miles east of E Agricultural (A) Greeley; north of Weld County Road 62 and west S Residential-One (R-1) of Weld County Road -43 IJ Residential One (R-1) COMMENTS: Access to the site is from Weld County Road 62, a paved tural arterial (100 foot right-of-way) . The production equipment; tank battery, oil and gas separator, wellhead and mater tank are in place on the property. The separator and wellhead are setback 100 feet from the tank battery. There is approximately 100 feet between the wellhead and the separator. All of the production equipment is setback approximately 400 feet from Weld County -Road 62. All pf the equipment appears to be new. There is a three (3) foot high berm around the fifteen foot high tank battery. Other than the property owner, the nearest residence is approximately 1 /1 of a mile to the east on the south side of Weld County Road 62. The balance of the property iG in agricultural production. Small feedlot, residence, outbuildings and crop production are the activities. The oil production facility is north of a twelve foot high -silage pit wall. BY: / • v' ��� Rod Allison, Current Planner II RA:rg ,, > L ml\� x,01 J'� � //�,,I ��I/ o9 ,, - , i 7t- l-(. r'__ oj =no, A . iti' _ ....•-• c .. p $e /•j } 0.0Ili / •• 0 LI i N L _�// b : / ' _ �. Nwj ivo . n as 1 a EL 'll ;r Sl a = I II xo o . �e x .a,.: a a. A O1 -Th � m 1p t\ 9m ¢ I III ii:st::; • \\ �- Say,' ! \,,. / °�©\ V-1 "e--• 1 .l ..\ T� j Mme. • �a • n u ti n - AC / 11l n ca 7 It_� _ :1-1y ' -- . a C v —�- *2,(/c `�J r. -t4-. ` 1 — a..- Jr I If,i,...,i:.:�oodo I ✓ FF co 4 ro . _ i e N j 1 J' UNIO X09. -Pd C1 lC. _ .� -'� j_LL 1.1 11 - .a S`y ,f1 p fay , �_ Il dnr II ,ILNIJ Im '--1 ii 1Y ' -114/14L L - 4. '�'T' S I k«'eQ ... I 1 ? Et. ly ,�� i .� I �1 �� ,� Ise �w 4-O / '`3 • N. p I.,N1N931b -1 , ., 0 Ib `C i ..L I WI ! I / �p J •o ,r .+ \ Aab'. ! s —113.1 / • .. I (( Hit 1 �/' �Ilr�l "' )1..' ,(i �• .4•'` I . pl'Y §A.. fffF ,. py i r. •i+i _ h .. YA,. •- _ -N?t v I- Cd. Prc all 2,---:' $ + " , i ', • :$ y E-.(......,,.7.,, c. 3$. YJ�d.rxt�'x . ?. . 1 t.,, ,,,;„ -aa tti\ t•e„�J 1" i.a �t6yRyS.r+. r - ti r < ir= — — x \ Z. J �✓ r AA. �-� - 4 1 ii 11 a '_is.t3 " . s .Y- r f' ,i" pi:,y axy ;wa`.l ^" •��.�.,' + S 4T g, sy .�. �'°r Xu .fir + ay.1 ;. 4 as a im&k..,..e.. . 'T + f -� s''_at+, Ri $ } te^1.. { 7 ys x j r ,�f� M rs 1":!- .3' 1 � 4�.`a• IF L� rY 1 a Y i� k Y '! -911,`44 t : x i I x a - 1 e5. ( 1 �., 1 f I I. �+ R viii ,r "Zeal,' afore �fir•., _ ^rK. �� i;. • �1a• 1 :i • • ly 4 i c y . , ., .....j...c..-,;.-,,,i le tliti.)5. I -, Cp -."...: Cn7`>r'�'#• "�fisS. �r'� .S,i).,1:"1 •. _... .`__ - • , .` urn 11 f:r .'7•711:Crean C REFERRAL LIST APPLICANT: R. A. Resources, Inc. CASE NUMBER: USR-623:84:19 SENT REFERRALS OUT: March 20, 1984 REFERRALS TO BE RECEIVED BY April 6, 1984 Cl) m z z m o Cl) o off 6 m H a Z U U 2W 0 ti £ W W te P W [in . F WW W U W U ai a Z Z v i Wa' Z Z _. County Attorney (plat only) Greeley Soil Conservation Servic 4302 9th Street Road Weld County Health Department Greeley, Colorado 80634 XX Engineering Department Paulette E. Weaver X XX 1725 12th Avenue ;: County Extension Agent Greeley, Colorado 80631 X Eaton Fire Protection District X XX Office r of Emergency Management c/o Duane Wilson c;i� hi � &' C:'w41i sM0,..t4 Route 2 Box 152 Sa-a-t. S'(! c S1-cA±a_IL- 7 Eaton, Colorado 80631 Colorado Department of Natural IResources Oil and Gas Commission 1313 Sherman Street Denver, Colorado 80203 State Engineer City of Greeley Division of Water Resources Ken McWilliams, Planner 1313 Sherman St. , Room 818 919 7th Street Denver, Colorado 80203 Greeley, Colorado 80631 -1 State Highway Department 1420 2nd Street Greeley, Colorado 80631 Colorado Department of Health Water Quality Control Division 4210 East 11th Avenue Denver, Colorado 80220 Date: March 17, 1984 CASE NUMBER: U.S.R. 623:84: 19 NAME: R.A. Resources Inc. ADDRESS: P.O. Box 2475, Greeley CO 80632 REQUEST: Use by Special Review for oil and gas production in the R-1 district LEGAL DESCRIPTION: Ez SEA, Section 33, T6N, R65W of the 6th P.M. , Weld County, Colorado LOCATION: approximately 11 miles east of Greeley; THE DEPARTMENT OF PLANNING SERVICES STAFF RECOMMENDS THAT THIS REQUEST BE APPROVED FOR THE FOLLOWING REASONS: 1. The submitted materials are in compliance with application requirements of Section 24.7 of the Weld County Zoning Ordinance. 2. It is the opinion of the Department of Planning Services staff that the applicant has shown compliance with Section 24.3. 1 et seq. of the Weld County Zoning Ordinance as follows: - All mineral resources are fixed in location. The mineral extraction industry is therefore restricted in its operations to those areas where the resources lay. The subject site is zoned residential (R-1) but the site is not platted for residential development. The Comprehensive Plan policies encourages mineral extraction prior to residential development. Residential development on the subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan. - The proposal is allowed as a Use by Special Review permit in a residential zone district. - The attached operation standards will make the proposal compatible with existing and future development of the surrounding area as permitted by the existing zoning and with future development as projected by the Comprehensive Plan of the City of Greeley. - The Greeley Planning Commission recommended conditional approval at its meeting on April 10, 1984. The concerns of the Greeley Planning Commission are addressed in the operation standards. - Use by Special Review Operations and Design Standards provide adequate protection of the health, safety and welfare of the neighborhood and County. The Department of Planning Services staff recommendation for approval is conditional upon the following: 1. The attached Standards for Use by Special Review be adopted and placed on the Use by Special Review plat prior to recording. 2. No building or electrical permits shall be issued for the Use by Special Review Permit area until the Standards for the Use by Special Review have been placed on the Use by Special Review plat and the plat has been delivered to the Department of Planning Services office. 3. A note reserving twenty (20) feet of additional right of way on Weld County Roads 62 and 43 shall be placed on the Use by Special Review plat prior to recording said plat. The City of Greeley has requested the reservation for the future development of both County Roads. 4. The applicant shall submit plans for berming of tank battery cluster to the Weld County Health Department and Department of Planning Services. The plans shall be approved and the berm corrected, if necessary, prior to scheduling a meeting before the Board of County Commissioners. OPERATION STANDARDS R. A. Resources, Inc. U.S.R. - 623:84: 19 1. The permitted use shall be oil and gas production facilities as described in the submitted application -materials; and as located on the Use by Special Review plat. 2. The oil and gas production facilities shall comply with the City of Greeley's Ordinance pertaining to oil and gas production. 2. All tank batteries shall be designed to meet the following standards: - The tank battery cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. - A six (6) foot chain link fence with three (3) strand barbed wire -top shall enclose the tank battery cluster. 4. All production equipment fixed at the site with a source of ignition, including heater/treator separators, shall be placed a minimum of 75 feet from the well head and tank battery cluster. The well head shall be a minimum of 75 -feet from the tank battery cluster. 5. The applicant shall comply with all Eaton Fire Protection District requirements. 6. The operator shall provide the Eaton Fire Protection District a list of four (4) names, phone numbers and addresses of responsible parties it can contact in case of an emergency. 7. Smokinc shall not he permitted at any well _oction or tan's battery location at any time, and signs indicating such pronibition shall be placed on the well site and at the tank battery location. 8. Fire extinguishers shall be maintained on the well site at all times during drilling and production. 9. A metal sign shall be placed on the property indicating the name and telephone number of the person(s) to contact in the event of an emergency. 10. All land within twenty-five (25) feet of any oil or gas, tank containing flammable or combustible materials, or other appurtenant well production Equipment shall be kept free of dry weeds, grass, or rubbish. 11. A four inch header shall be laid over the top of the berm surrounding the tank battery, and an underground two-and-one-half inch line shall he attached thereto which shall extend from its connection with the header to a point two hundred (200) feet from the tank battery. The end of such line shall be clearly marked by a sign. The manner and method provided for connection at said end point shall be determined by the Eaton Fire prevention District so that fire suppression chemicals may be pumped through the line and header to extinguish fires in the tank battery. 12. Applicant shall comply with the Drilling and Completion Policies of the Oil and Gas Conservation Commission dated March 19, 1984, including but not limited to the equipping of the bradenhead access to the annulus between the production and surface casing with a needle valve and gauge fittings to permit the observation of pressure. The Weld County Health Department may accompany inspectors of the Colorado Oil and Gas Conservation Commission who are implementing the March 19, 1984 Policy as to the well permitted hereby. 13. Prior to commencing drilling, the operator shall submit a copy of a policy of insurance in the amount of five hundred thousand dollars ($500,000.00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out of the drilling, maintenance, production or other work done with respect to such proposed oil or gas well. Such policies shall be written by a company authorized to do business in the State of Colorado. Evidence of the insurance policy shall be filed with the Department of Planning Services. In case the insurance policy required shall lapse or become void for any reason whatsoever, the Use by Special Review Permit shall cease to exist until a new insurance policy shall be provided and filed with the Department of Planning Services. All well activity shall be shut—down and all operations and production thereof shall be suspended and discontinued, consistent with safety consideration, until the operator provides evidence of insurance in the prescribed amount. 14. Brine water produced at the site during oil and gas production shall be disposed of by formation injection or disposal into a commercial brine disposal site. 15. Drilling muds can be used as an agricultural enhancement. The drilling muds MUST be applied and disked into sandy soils with the landowners consent. 16. Upon cessation of the proposed use, the oil and gas production facilities shall be removed and the land shall be reclaimed to its' prior use. 17. The applicant shall comply with the design standards for the Use by Special Review, Section 24.5 et seq. , of the Weld County Zoning Ordinance. 18. The applicant shall comply with the Operation Standards for Uses by Special Review, Section 24.6 et seq. , of the Weld County Zoning Ordinance. 19. Representatives or members of the Weld County Health Department and Weld County Department of Planning Services shall be granted access onto the site at any reasonable time in order to insure the operations carried out on the site comply with the Development Standards stated hereon and all applicable Weld County Regulations. 20. The Use by Special Review shall be limited to the plans shown hereon and governed by the Standards as stated above and all applicable Weld County Regulations. Any material deviations from the plans and/or Standards as shown or stated above shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans and/or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 21. The property owner and/or operator of this operation shall be responsible for complying with all of the above stated Standards. Noncompliance with any of the above stated Standards may be reason for revocation of the Permit by the Board of County Commissioners. ADDITIONAL COMMENTS R. A. Resources, Inc. U.S.R. - 623:84: 19 The Use by Special Review area is in an Airport Overlay District area. No structure exceeds the maximum allowed elevation of 4,730 feet at the subject site. The Planning Staff estimates the elevation of the tallest tank battery at less than 4,690 feet. l ( rLY CIVIC CENTER, GREELEY, COLORADO 80631 City of GREELEY 353-6123 Greeley April 13 , 1984 Rod Allison Weld County Dept . of Planning Services 915 1Dth Street Greeley, E0 80631 Dear Rod : The Planning Dommission at its April 10 , 1984 , meeting reviewed the request by R . A. Resources for a Use by Special Review for oil and gas production in an R-1 ( Single Family Residential) district . The Commission recommended no objections to the use conditional on compliance with all City ordinances regulating oil and gas drilling and production . Additionally , the Commission requested a note be placed on the plans noting the need for the surface landowner to reserve 20 feet of additional right-of-way for the future development of both County Road 62 and 43 . Thank you for the opportunity to review and comment on this application . If you need any clarification on this -matter , please do not hesitate to contact me . Sincerely , K-en McWilliams City Planner AsKt MEMORAnDUM ep , A,.. • To Wes Potter Date April 10, 1984 COLORADO From George Vargulich Subject: R.A. Resources, Inc. / USR-623:84: 19 The oil and water holding tanks proposed in USR-623:84:19 Addendum are to be surrounded by "a berm" in order to contain liquids in the tanks in the event of a leak. Although the construction details of this berm are not stipulated in the Addendum, it is common practice to use soil materials available at the site to construct the berm. Results of site evaluations for I.S.D.S. in the area of the proposed site and experience with past actual spills :at similar _x-sting facilities indicate that a berm constructed of on-site soil material at the proposed facility would likely be inadequate to perform its intended function; i.e. , contain any spilled liquids to prevent ground and surface water contamination. GV/br • i nj _..'d i ill• .Ua April 12 , 1984 Wald County Planning Commission Grealey, Colorado Re: Use ty Special Review Permit Koehler Well #1 EiSE± of Section 33 , T6N—R65W Dear Commissioners : There will be a Use by Special Review hearing on April 17 , 19B4 regarding the granting of a permit for oil and gas production to R A Re-sources for this well. Unfortunately I will be unable to attend this meeting , however, as the landowner , both surface and minerals , I would like to express my approval with the way R A Resources have conducted their operations . They have worked with me as far as drill site location, tank battery site and roads . -They have sought to minimize the effect of their operations on my cattle and farming operations and at all times appear to conduct themselves in a professional and safety conscious manner . If you have any questions please contact me . Sincerely , James R. Koehler APPLICATION USE BY SPECIAL REVIEW Department of Planning Services, 915 Tenth Street, Greeley, Colorado Phone - 756-4000 - Ext. 400 Case Number 11-51? Date Received .3-/€-S'Y Application Checked by .1}.. Applicaticn Fee 1 755,p p Receipt Number /3a'? Recording Fee Receipt Number TO BE COMPLETED BY APPLICANT: (please print or type, except for necessary signature) I (we) , the undersigned, hereby request hearings before the Weld County Planning Commission and the Weld County Board of County Commissioners concerning the pro- posed Special Review Permit of the following described unincorporated area of Weld County Colorado: LEGAL DESCRIPTION OF SPECIAL REVIEW PERMIT AREA: E4SEa Section 33 T (1 N, R (rW 1,EGAL DESCRIPTION of contiguous property owned upon which Special Review Permit is proposed: W S E ( Section 33 T6 N, R65 W SNEk Section 33 T6N , R65W Property Address (if available) 1005 East "C" Strnot . Gren] ny no R0631 PRESENT ZONE R-1 OVERLAY ZONES 'TOTAL ACREAGE 80 acres PROPOSED LAND USE Drill and orodluce Oil & Gas Well -EXISTING LAND USE crops ( corn ) SURFACE FEE (PROPERTY OWNERS) OF AREA PROPOSED FOR REZONING: Name: James R . Koehler address: 1005 East "C" Street City Greeley Zip Rf631 Home Telephone # 352-8536 -Business Telephone # saran Name: Address: City Zip Home Telephone -# Business Telephone # Name Address: City Zip Home 'Telephone # -Business Telephone # APPLICANT OR AUTHORIZED AGENT (if different than above) : Name: R A Resources , Inc . Address: Y .O . Box 2475 City Greeley Zip 8Q632 Home -Telephone # 353-2717 -Business Telephone # 353-6066 Dwner(s) and/or lessees of mineral rights on or under the subject properties of record in the Weld County Assessor's Office: Name: James R . Koehler Address: 1005 East "C" Street City Greeley Zip RnA31 Name: Address: City Zip Name: Address: City Zip I hereby depose and state under the penalities of perjury that all statements, proposals and/or plans submitted with or contained within this application are true and correct to the best of my knowledge. COUNTY OF WELD STATE OF COLORADO ) It A Re ources ,r c e s , Inc . $ IL- 10.:41. Siyaturefly Authorized"D Agent-Subscribed and sworn to before me this 7gday of )) 19 // . SEAL .{f Y /l�L?1 NO Y PUBLIC J -My coomission -expires T �� ,T`J R A RESOURCES, INC. ADDENDUM Attached to and made a part of the application for Use by Special Review before the Weld County Planning Commission submitted by R A Resources , Inc . dated March 9 , 1984. The purpose of this application is to drill and produce an Oil and Gas well located in the E2SEk of Section 33 , Twp. 6N . , Rng . 65 W . , 6th P .M . , Weld County , Colorado . We believe that this proposal will be consistent with the Weld County Comprehensive Plan in that a very small amount of acreage ( i .e . 1h acres) will actually be taken out of agriculture production . Our object is to preserve the agriculture land and to reimburse the land owner for any actual loss incurred because of oil and gas production. We also believe that oil and gas production on this tract of land will be consistent with the development of the City of Greeley . All requirements and standards have been followed as if drilling and production were being done within the city limits of Greeley , when in fact the well is located approximately 1 '! miles outside the city limits . Even though this District has been zoned R-1 , it is basically agriculture land supporting crops and livestock. The well site lies over 500 feet from the nearest dwelling unit which is owned by the landowner, James R. Koehler. This District has not been developed for residential housing and we believe the proposal is consistent with the intent of the District , both now and in the future . Since there are no foreseeable plans for residential development in this area , by the time , if ever , residential housing becomes a factor, the production life of the well should be completed and all signs of the well removed. urv, I ._L, r..:,.'tA 110., 10Th . I NFF i • r l L IA :!.:7'.i Gria Li.EY C Ol Oil and gas production on the subject tract of land will be compatible and consistent with the existing surrounding land uses . The surrounding area is farmland growing crops or raising livestock in feedlots . There are in fact three producing oil and gas wells within a mile east of the proposed location. We are therefore not the first to drill in the area , however , our well will be the first well in Section 33 which is zoned R-1 . The well location is in the Airport Overlay District , Instrument Approach Zone subclassification. All height limitations prescribed by the Weld County Ordinance will be strictly observed . The tallest structure on the sight will be one , three hundred barrel tank which will not exceed twenty feet in height . Equipment and structures at the wellsite will consist of one ( 1 ) three hundred barrel oil holding tank , one ( 1 ) one hundred barrel water holding tank , one ( 1 ) horizontal separator, one ( 1 ) meter house and the well-head valve . As mentioned above , the highest structure will not exceed twenty feet . All distance requirements of the Colorado Oil and Gas Conservation Commission , Weld County Ordinances and City of Greeley Ordinances will be observed . All structures and equipment will be painted with the company colors (white with red trim) and a fence will be erected around the battery site . A berm will be built around the two tanks and will be of sufficient height to contain liquids in the tanks in the event of a leak, assuming both tanks are full. The tanks will be set back over 300 feet from any building , property line or easement . Upon the abandonment of the well the hole will be plugged in accordance with the Colorado State Oil and Gas Conservation Commission regulations , and the abandoned well site will be restored to a condition substantially similar to the original contours and condition or better . The underlying theme throughout all drilling and -2- and production is safety , not only for the people working at the site but also by doing the job the right way to prevent any possible mishaps in the future . Nobody respects the power of natural gas move than the people who work with it. We are well aware of the hazards involved and we conduct all operations accordingly . If an accident were to occur one of the biggest losers would be the oil company. Vehicular traffic into the site will be minimal and will _consist of daily inspections made by employees in pick-up trucks and approximately once a week a tanker truck will go into the site on the access road to load oil from the 400 barrel oil holding tank. Any water produced from the well in conjunction with the oil and gas produced will be separated and held in the 100 barrel water tank. A water truck will pick up the stored water approximately once a month and will dispose of it at a Weld County disposal site . fire protection measures on the well site will comply with the 1982 version of the Uniform Fire Code , Section 79 .1101 . Tank battery ' s will be located 100 feet from the well head, the well site is more than 300 feet from the nearest structure , and R A Resources , Inc . will have a sign at the site giving a number to call in case of emergency. Even though the well site is located in the Eaton Fire :District , we consulted with both Brian Johnson , Chief of the Western Hills Fire Department and with Reuben Bopp, Chief of the Eaton Fire District . Our well will be in compliance with both Districts . In conclusion, we have tried to comply with the Weld County Ordinance as well as the more strict City of Greeley requirements . We have worked in conjunction with the landowner in order to minimize damage to agriculture producing lands . The natural gas from this well will be sold to Greeley Gas Co . for local use . This in turn will reduce the cost the residents of Greeley and Weld County -3- pay for natural gas consumption as well as stabilizing the price for years to come . Our wells also provide a valuable source of revenue for the County and hopefully will help compensate for any inconvenience caused to the people of Weld County. Sincerely , Keith E. Abbott Vice President KEA/bj -4- AFFIDAVIT OF INTEREST OWNERS SURFACE ESTATE Application No. Subject Property E„'-Sea of Section 33 . Twp. 6N . . Rnd_ 6-5W _ STATE OF COLORADO ) ss. COUNTY OF WELD THE UNDERSIGNED, being first duly sworn, states that to the best of his or her knowledge the attached list is a true and accurate list of the names, addresses and the corresponding Parcel Identification Number assigned by the • Weld County Assessor of the owners of property (the surface estate) -within five hundred (500) feet _of the property subject to the application. This list was compiled from the records of the Weld County Assessor, or an ownership update from a title or abstract company or attorney, derived from such records, or -from the records of the Weld County Clerk and Recorder. The list compiled from the records -of the Weld -County Assessor shall have been assembled within thirty (30) days of the application submission date. Ft A Resources , Inc . n � . • b _,C. biter Keith E . Abbott - Vice President The foregoing instrument was subscribed and sworn to before me this 71 day Maroh , by Keith E . Abbott , Vice -President of- R A Resources , Inc . WITNESS my hand and official seal . My -Commission expires : mew Not y Public (/ NAMES OF OWNERS OF PROPERTY WITHIN 500 FEL' Pleese print or type NAME -ADDRESS, TOWN/CITY, ASSESSOR'S PARCEL STATE AND ZIP CODE IDENTIFICATION # Melvin T . -Bickling and 212_85 WCR 62 #62080336000030 Diana M . Bickling Greeley . CO 80631 Charles W . Bliss Kinikinik Ranch ({62080333000016 40738 Toudre Canyon (SWkSE1 of Sec . 33 ) Bellvue , CO 80512 #62080334000018 (W2SW4 of Sec . 34) Davis Farms , Inc . , 922 - 10th Street #62080333000032 Gr-eeley , CO 80631 (SINE**- of Sec . 33 ) #62096104000010 (NE± of Sec . 4 . 5-65 ) Fred J . Winters and 390 N . Cherry Avenue #62096103000044 Ann Winters Greeley , CO -80631 (NWINWI of Sec . 3 . ) ( or 4925 W . 4th Street Greeley , CO 80634 • AFFIDAVIT OF INTEREST OWNERS MINERALS AND/OR SUBSURFACE Application No. Subject Property EeSE1 of Section 33 . Twp. EN . . -Rug. 65W . Weld County . Colorado STATE 01 COLORADO ss. COUNTY DF MELD ) THE UNDERSIGNED, being first duly sworn, states that to the best of his or her dcnowledge the attached list is a true and -accurate list of the names and a-ddr-esses of all mineral owners and lessees of mineral -owners on or under the parcel of land which is the subject of the application as their names appear upon the records in the Weld County Clark and Recorder's Office, or from an ownership update from a -title or abstract company oran attorney. R A Resources , Inc . by ;f" 1-el'/ v Keith E . Abbott , Vice President The foregoing instrument was subscribed and sworn -to before me -this 7th :day of March , 19 84 By Keith T . Abbott , Vice "'resident of R Al Resources , Inc . • WITNESS my hand and official seal . My Commission expires : -/S- 85 Notary ublic U NAMES OF ITTEREST OWNERS MINERALS AND/OR SUBSURFACE Name Interest Owned James R . Koehler 100% Mineral Owner 1D05 East "C" Street Greeley , LO 80631 R A Resources , Inc . 100% Working Interest P .O . Box 2475 Leasehold -Owner 1100 10th Street Suite 202 Greeley , CO B0632 51 3 '32 1 4 to 1 y °_50 I 15 '' i \' - 46 —29 f , 21 I ,28 __ 27 78 0 32 . .�. . 1 31 'I _ Id 1 " L S`�1 x s t Ek+`4ya"` 52 y, 79 0.5' I, jlumpierT.om.r F ... !. I • 11 T 51 • - . HY 7 . � :4: a. 1 ` ' _ rat . � •fit !` R. J ♦ 4 32 32 4116••t? 14g�.;fir:• I• \ }. :5� • F j 1 ; 21 :: 4. 31 -4 S • 31 x ► ` I ' � ` •32 ,` 33 I _ 1 34 C I..S. w 2. 32 ... : 32 L1 9 i9 i k Y'1 iJ ' + dC + '1 50 ..�..; 32 - t 1 • A ..} "".� •{ '- ' $ '132 5 • 5... . , •- . • Jy ' + 4V-9,.,04• • �.. aY,. 3 ill P at' .•` f. $,'yl arti v 68 . 78 Y.3>r..: 21 • re; i • 44c e : i9 ..." 1 .. 14 4 y 6 •, -ao' t^v, 7, \ 5 121 ; 10 1 1 •t ♦ '., 't •$€.* .sX.f'' �j - -'. .a.rF. ; 32 :' .- .�I xr . }J . t •'�' • uil .4- r -*Pi; , \dL3n' -tt # • 68 • rCT &x 3Y cp �1 y .- 7 y i�>y'Y'-.....*S Tj :-....4...'� T"(. r-• .. a i a C`. a j.y 63 . '!<--� ^l , `X. M so 1. :e� tryl` w to -1x- "'� r. ; i- ae a"10 • �y K sir•- • .t • a•.. , 50 - 3 r .6 . •y : ,4�^+r } .I ,f CACHE y ' a l4 JXI, i *Jet t • a el' i f 1 C fF ', --, E - ,•1 • -.� `% 3 a• •'�i ' -' u 2 u 4 • eiti �4x ::• I . . _ I - `� 10`''- F • t r cT, . •.'�f ,: ti eJs' -p • { �� • .� 9 . > S' ; - . .1f ZgREELEY , �; f . -Tr:: .e ~. ti • M •'K J., 1' l Skitl -2 -: ,.j ' ' 50 .. 39.- ,r1�t'I uNN cwevc B 1020 REC 01955241 02/03/84 14 : 20 $6 . 00 1/002 F 0342 MAi ANN FEUERSTEIN CLERK & 12E RDER WELD CO, CO AR1955241 ASSIGNMENT OF OIL AND GAS LEASE ICNCW ALL MEN BY THESE PRESENTS: WHEREAS, the undersigned, WEEKS ENERGY MINERALS CORPORATION, a Colorado corporation, whose address is 1000 Security Life Bldg. , Denver, Colorado 80202, hereinafter called "Assignor", is the owner of the oil and gas lease described in Exhibit A attached hereto and incorporated herein by this reference, insofar as said lease covers the interest in the lands described in said Exhibit A situate in Weld County, Colorado. NCW, THEREFORE, the said Assignor, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable considerations to it in hand paid by R A Resources, Inc. , a Colorado corporation, whose address La.?... D. Box 2475 Greeley, Colorado 80632, hereinafter called "Assignee", the receipt and sufficiency of which are hereby confessed and acknowledged, has sold, assigned and conveyed and by these presents does hereby sell, assign and convey unto the said Assignee all of the Assignor's right, title and interest in and to the oil and gas lease described on Exhibit A insofar as said lease covers the lands described in Exhibit A in Weld County, Colorado. TO HAVE AND TO HOLD the same unto the said Assignee, its successors and assigns, subject, however, to the following reservations, terms and conditions: 1. Assignor reserves an overriding royalty interest in the amount of 7.33% of 8/8ths in and to the oil, gas and other minerals which may be produced and saved frau the herein described lands under the terms of the oil and gas lease described herein, which overriding royalty interest shall be exclusive of and not in addition to the lessor's royalty reserved in such lease and any and all overriding royalty interests previously reserved and conveyed. Said overriding royalty interest shall be subject to proportionate reduction to the extent that the interest covered by said lease bears to the full and undivided mineral fee estate under the lands covered by said lease and shall further be subject to proportionate reduction to the extent that the interest of the Assignor in said lease bears to the full working interest in said lease. Any overriding royalty interest reserved herein in excess of the royalty interest provided for in the respective oil and gas lease described herein shall apply to any extensions or renewals of the oil and gas leases described herein or any new leases taken in lieu thereof and shall be payable to present owners of said overriding royalty interests. 2. This assignment is made without warranty of title, either express or implied. 3. Assignee agrees to carmen ;orb use to be commenced the actual drilling of a well on or before F nry'8, 1984 at a legal location of its choice in the E2SE4 of Section 33, Township 6 North - Range 65 West, of the 6th P.M. 4. Assignee agrees to drill said well to a depth of 80 feet below the base of the "Codell" Formation. 5. Assignee agrees to test the "f n7P11" and "Larimer" (Perlman) Formations and to furnish Assignor with all geological data. .AIVLWITNESS WHEREOF, this assignment is executed this 2nd day of F bt44 .984. WEEKS ENERGY MINERALS CORPORATICN calTESTe "..c (I n -a Bye !flies-L..4 "" �� seph M. Alf Pr ident J', (xjemes ;6oding, Secretary ( Sa'PE VP Lao ) CTTY•lAND•CDUN'1'Y OF DENVER ) C�.......\ The foregoing instrument was acknowledged be itd me ttii's•.` d day of February, 1984 by Joseph M. Alfano as President J * h4 flooding as Secretary of Weeks Energy Minerals Corporation, 1 a®rp4tation. C c et2t ;1 Cfr+.r � My Commission Expires: 9/12/84 Notaty lic ). es e : 1000 Security 14. S0 dggSE',. Denver, Colorado'' �,, / B 1020 REC 0 55241 02/03/84 1-4:20 6 . 00 2/002 F 0343 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO ri O Iz Pu M N F1 �J O PI IIIIIIGGGGGG i \ M Q O �uYz N ° n a, O N (� \ b N kWW 7 8 g N F H a crl 4 5 w a i w ° " `145' O -2 C a c a, -.+ m N v o ro 44B z4 C) 8 ri, lD t`M'1 4J 10 W co r j N N 4-) b o Q 0 4 co -4i ro O a@ 0 2 a) Ts A L A 4: Q --, U) V Sa N 8 a O cn co i— h d+ IItDI:_R WELD CU , Cu kiiy 12u459 r Iti ', le Y NN fl�[:RS ELrd• �L.LKK I LC "� C053002031 • ASSIGNMENT -OF OIL AND GAS LEAS—ES C053002032 0053002033 A, .B C053002034 KNOW ALL MEN BY THESE PRESENTS : That the undersigned, St. Michael Exploration Co. ; Quatro Exploration Co. , a Colorado Partnership; Polfam Exploration Co. , -a Colorado Partnership; William M. Butler; H 6 I Investments , Ltd. ; Coors Energy Company; Toltek Drilli-ng Company; Vince Allen XI 2i Program, Ltd. ; Larry Grace; SBH Financial _Corporation, hereinafter Called Assignor (whether one or more) , for and in Consideration of Ten Dollars ($10tI70 an other valuable consideration to it Cor or in hand paid by -Energy erer nergy Minerals Corp. , fie renafter referred to as "Assignee", the receipt and sufficiency of which are hereby acknowledged and confessed, has transferred, assigned and conveyed and -by these presents does transfer , assign and convey unto said Assignee, all right , title and interest. Said interest being in and to the Oil and Gas Leases set out and described in Exhibit "A" which is attached hereto and by this reference made a part hereof. In the event the Assignee herein shall elect to not pay the rentals due under the leases herein assigned, Assignee agrees, at least 60 days prior to any such rental date, to notify Assignors of its intention to not _pay such rentals , and Assignors shall have 10 days from such notification to request reassignment of leases herein assigned. Assignors are the lawful owners of and have good title to the interest above assigned in and to said lease, estate, rights and property, free and clear from all liens , encumbrances or adverse claims; that said leases are valid and subsisting leases on the land above described, and all rentals and royalties due thereunder have been paid and all conditions -necessary to keep same in full forte have been duly performed. This Assignment is made without warranty of title, either express or implied. This Assignment may be signed in counterpart, and when executed by 311 parties will be consi-dered as one instrument. IN WITNESS -WHEREOF, this instrument is executed this '`")t= day of i )/^, '' '" C y jT.� C AEL EXPLORATION TO. A� 1ST:-. :-) '4i �. eF � Q ' AlLW� Y Jud( ne•.M�....Tat�lram, Secretary J. Anthony Potumbus , President STATE OF COLORADO ) CITY AND COUNTY OF DENVER ) On this / 7:), -day of i,ti: L; u ri , 198$, before me personally appeared J. Anthony Polumbus , to me personally known, who, being by -me duly sworn, did say that he is the President of St. Michael Exploration to. , and that the seal affixed to said instrument is the corporate seal of said corpora- tion and that sai4 instrument was signed and sealed in behalf of said corpora- tion by authority of its Board of Directors , and said J. Anthony Polumbus acknowledged said instrument to be the free act and deed of said _corporation. Witness my hand and seal this ;'1�1, day of i(;; . . , 1383. •WWIfr,,., ., .t ;,y/) , Notary Public ' Hy' Coymi ss i4n Expires 3— 'J - 4,. . 3-,. O a r- ,_ O -O (.;; c1I OI en M n • - > 1 sel 4- -ca a J -0 %0 CO -. CO W G \ \ \ \ \ .- -.1 3 O -O CC W n en 'a Y+1 aa) 0 N — 3 —r In G In n 01 O X CL. CO CO CO 01 1)1 O cO a> co co CD LI '- — .— — -._ W Y -CC O in - 0.0 '0 -1, O 10 'O 00 Vp 'O c0 a1 01 01 O1 -01 V1 V1 -0 0 n h lr, D O - ID OD I- o o al -- w 03 CO — .-- N ._. W K L/I O 0 en If O0 U ✓1 0 O - I- n Co CC O 0 O1 in C) 0 CO CO N N N 4-I aJ -I D \ 4) aJ O) -I 4) N YI in C2 >. UI UI U1 VI 1/1 C) C) 4) 10 — 4) 0) 4) 4) N 3 3 3 - -.1.) I_ C) 3D 4) 4) 3D 4) 4) L () — CC — C1 — in Vl lu ♦/ — in 10 L in N a) '0 %0 a0 O 7 C 1O — 0) >- C 00 - 4) >- C CO ..- CL. . .— C L — . a) (3) 4) N ._ ._ 0) Li-- 0 L O w .- O I.- al u 4.I D 01 O E N D O E m D -C _ C C U D L O) C D - 4) C D .- 4) N (0 CO (0 0) 03 .0 4) u 4) S 7 .0 +0 u N 7 it \ C \ CC L u a-- C O .4-0 --... U - IY U u \ O .- W N (a L 10 N W •— L Ip a W -- L 0.) Li - L 7Zuk - L -7Z uU C (N C N -C O u L in C u u N I- U1 C u u IN L N N \ J, \ Y 3 .- _O 4) 4- \ la 4) L — \ IO 4) O WL 3 0 F- in E D OQ•N W 0D LL < •UIW at -. Z Z Z Z A ).0 n VJ n '.0 N %p N sO N n en en en en I- a b •- C •- C •- _ ._ C ._ C L O co .co _C O L O In .- 1J C a+ C u C u C u C u r. -- ~ J^ 3 U 7 u 3 u 3 u 3 u m C] F— N )— V1 I-- V1 = X W — Ir in IP 01 O CO CO OD CO ao \ \ \ \ \ -F' Ol N ‘O O VD -C 0 0 -0 N 0 V 3TIC \ \ . \ en en S S — O O O O D >C N N N N N 1L W aJ CO CO CO 17 w \ \ \ \ \ N al N '.0 0 'D w C 0 O O (NJ O Q J In -rn -I' -7 1> 0 0 O O 0 O -O O O O 0 0 y C) C) C) U '.` Z - C - C C - C 0) 0 4) O 4) 0 -4) 0 4) 0 a •- a .- a .- la •- a -- L++ -C u -C u C u C u U N 0 IO U N -U N 0 0 l W E O E O E O E O S O V a— - - a . a :T VI - a - a w ++ x a• X — x +-I x .. X ett I, J VI W N W U) W in W _/I W ^.) f C n a Y E D E In D a -C N D O C D - Ya ...4 C 0— ._ _ IO C 7 -Ia _ .y •— O1 -) N . W • CO W al C V) _ CC L V -- T >- • T CC 4) L N C -4+ C C 7 D L f� a v. - O L N a) IV u l O N U L 1.0 ++ D a 0 N -t0 •� w a O 4) 4) 7 0 9 C E IO 3 In — -J —1 Y J O V) E O I--• J S E N 0 O \ \..-, en in 111 W W O — N N N VI CZ1 Sn 01 01 al al w D O O 0 0 O J 2, C) L) W L) L �' 238 mluce a) B v OIL AND GAS LEASE K an:,S/KLA,s[Colo,I:963-Rev.(J-V) • THIS AGREEMENT made and entered Into this 9th day of March 3gJ- 0 • by and between James R. Koehler, a single man 1005 fast "C" Street, Greeley, Colorado $0631 tenor (whether r ape or more), .ndST, MICHAEL IXPLORATI ON CO, One Park Gen ra S ' 0702 lessee WITNESSETH: 10 That the lessor, brand In consideration of Ten and -more bells M,y 10.00 + ) In �`'�i can and sufficiency of which is hereby acknowledged, and the covenants and agreements hereinafter contained, does hereby grant, demise, lease and let unto the said lessee, �gtIp successor' producing the following(described land for the purpose of Carrying on geological, geophysical and other exploratory work, including core drilling, and the drilling acing ler, saving gas, gas condensate, gas distillate, euloghead em, casinghead gasoline, and all other gases and their constituent parts, and other minerals g� connection Ia with oil and cos operations hereunder, or as a by-product of oil and gas, and.the exclusive right of Injecting water,brine and-other fluids and substances into eta, with J rights of way and easements for laying pipe lines, telephone and telegraph lines, tanks, prover hours, stations, ponds, roadways and other fixtures or stuvctures fo sting and caring for such Products, and any and all other rights and privileges necessary, Incident to w convenient in the economical or efficient operation, alone or conlol t lands, of Sid mid land for the production of-said products or substances-old the erection of structures thereon to produce, saw and tabs Care of said products and substances a tO of water, 3 brine and other substances into the subsurface strata of said tract of land, together with any reversionary rights therein, said tract el lad being shunted In the GA* Weld Stab of Colorado -ead deeeruw a felMwg, to-wit: 1 p IX Li TOWNSHIP 6 NORTH, RANGE 65 WEST OF THE 6TH P. M. Cr: Section 33: E#SE* 0 :.) -8 a `I l i i i,<.,� of Section 3J Township_ 6th , together with all-submerged lands, accretions, strips and gores -adjacent or contiguous—Norma and owned or claimed by the lesser, which laMhetlull, for the ��W Ypurpose of calculating the amount of any money payment permitted or required by the terms of IX this lease, be considered as containing exactly 80,00 acres, whether there is more or less. Ili TO HAVE AND TO HOLD the same tsubject to the other provisions herein contained) for a term of Two _l__2 —J J years from this date thereafter called "Primary Term") and as long thereafter as oil, gas, gas condensate, gas distillate, casingMad gas, winghead gasoline, and other minerals may he produced Irom said lease premises or operations for cone drilling or production thereof are continued as hereinafter Provided. In consideration ol the premises, it is hereby mutually agreed as follows: 1. To deliver, free of cost, to the lessor at the well or to the credit of lessor into the pipe line to which lessee may connect Its well, an equal one-eighth Meth) part of all oil produced and saved from the lease premises or at the lessee's option to pay to the lessor for such One-eighth (Valhl the market price at the wellhead for oil of a like grade and grants Z prevailing on the day such oil is run into the pipe line or storage tanks. 2IM manufacture. Onsas,of condensate gas distillate, casinghead cos and all other gases, Including their Constituent parts, produced from said land and sold or used off the lease premises or la gasoline or other products, essee shall pay to lesor equal to one-eighth INthl of the gross proceeds received from the sale,of such produced substances where iI.J the same is sold et the mouth of the well or, if not sold at themouth of thewell, then one-eight (frith) of the mark., value thereof at the mouth of the well, Out in no event n j— than one-eighth VA the of the actual amount received by lessee for the sale thereof. more Si 3. If gas from any well Cr wells on the premitee capable of producing gas In commercial quantites Is not sold or used off the premises or in the manufacture of gasoline fur a CC period of one (II year or r during which time there Is no other production from the lease premises, then lessee shall become obligated to pay as royalty for such annual period a sum equal to the delay rentals provided paragraph number 6 hereof, whether during or after the primary term. In consideration of the obligation so to pay, it shall within the meaning iii of all the terms of this lease, including the habendum clause, be conclusively deemed that gas is being produced from the premises during the time such gas is not sold or used. 4. On all other minerals produced and marketed, lessee shall pay one-eighth I VethI of the current market price at ins mouth of the well, but in nu event more than one-eighth (Valhi. • of the actual amount received by the lessee. ere Ll. 5. If surplus gas well on the lease pmises produces dry gas In excess of that needed for operations hereunder, lessor shall have the privilege, at his sole risk, cost and expense, of usin such ur lus gas for stoves and inside lights in the principal dwelling located upon the lease premises. Notwithstanding any of the provisions alore,aid, lessee shall have free use of oil, distillate, condensate, gas, casinghead gas, casinghead gasoline and all other petroleum products, water and other minerals and materials from the lease premises, except water from -z lessor's-wells and tanks, for all operations hereunder. 6. If operali-ns for the drilling of a well for oil or gas are not commenced on the lease premises on or before one (I) year from the date hereof, then this lease, except as other- a *Ise provided, shall terminate as to both parties unless the lessee, on or before that date, shall pay or tender to lessor or to lessor's credit in the )-. Unifed Bank of Greeley ,,nka, 1000 10th Street, Greely, Colorado 80631 (or to any bank designated in writing by lessor whether or not such written designation is recorded), or Its successor or successors,which bank and Its successors are lessor's agents and shall continue as the depository bank regardless of changes in the ownership of said land or the right to receive rentals, the sum of.,,. Eighty and 00/100 ----Domes (s 80.00 I, which shall operate as a rental and cover the privilege of deferring the commencement of operations for the drilling of said well for a period of one (1) year from said date. In a like manner and upon like payments or tenders, the commencement of operations for the drilling of sad well may be further deferred for like periods successively, It is understood and agreed that the consideration first recited herein, the down payment, covers all the privileges, option and other rights conferred upon the lessee. Lessee may, at any lime, execute and deliver to lessor or place of record a release or releases covering any portion or portions of the above described premises, as to any or all horizons, and thereby surrender this lease as to such portion or portions and be relieved of all obligations eas to the portion surrendered. and where a or portion of this lease is released as to all horizons, then rentals thereafter payable hereunder may be reduced in the proportion that the acreage covered by,this lease is -,educed by Said release or releases. Payment or tender of rental may be made by draft or check of the lessee, transmitted, delivered or mailed to the authorized depository bank or to the lessor at his last known address las shown by lessee's records) on or before the rental date, and the payment or tender shall be deemed to have been made when the check or draft Is so transmitted, delivered or mailed. T. It is expressly agreed that if lessee shall commence operations for the drilling of a well at any time while its lease Is In force, this lease shall remain n force and Its term fall continue for so long as such operations are prosecuted and, if production results therefrom, then so long as such production may continue. Should the lint well drilled on the anise described land be a dry hole or fall to establish production, then and In that event if a second well Is not commenced on said land within twelve 112) months following the expiration of the last rental period for which rental has been paid (or within twelve 1121 months from the first anniversary of this lease if such well Is drilled during the first year of the primary term), this lease shall terminate as to both parties unless the lessee on or before the expiration of said twelve (12) months shall resume or commence the payment of rentals in the same amount and in the same manner as hereinabove p operations If, within the primary term of this lease, production on the lease premises shall cease from any cause (other than a cessation contemplated In paragraph 3), this lease shall not terminate provided for the drilling or reworking of a well shall be Commenced before or on the next ensuing rental paying date falling more than ninety (90) days after such cessation; or, provided lessee begins or resumes the payment of rentals in the manner and amount hereinhefore provided. If, after the expiration of the primary term of this lease, production on the lease premises shall cease from any cause (other than a cessation contemplated in paragraph 3), this lease shall not terminate provided lessee resumes or commences operations for the drilling or reworking of a well within ninety 1901 days from the date of such cessation, and this lease shall remain in force and effect during the prosecution of such operations, and if production results therefrom, then as long as such production continues or the well or wells are capable of producing. 8 Where required by lessor, lessee shall bury all pipe lines below ordinary plow depth in cultivated land. Lessee shall pay lessor for damages caused by lessee's operations to all cultivated crops growing on said land. Lessee shall have the right, but shall not be obligated, at any time, either before or after expiration of this lease, to remove all fixtures and other property placed by lessee on the lease premises, including the right to draw and remove all casing. Any structures and facilities placed on the lease premises by lessee for opera- tions hereunder end any well or wells on the lease premises drilled or used for the injection of salt water or other fluids may also be used for lessee's operation on other lands in the same area; the right to so use such facilities may be continued beyond the term of this lease by payment in advance of the sum of One Hundred Dollars ($100.00) per year. No well shall be drilled nearer than 200 feet to any house or barn now on the premises without the consent of lessor. 9. Lessee is granted the right, from time to time while this lease is in force, to pool into a separate operating unit or units all or any part of the land covered by this lease with oth the er land, lease or leases, or interest therein (whether such other interests are pooled by a voluntary agreement on the part of the owners thereof or by the exercise of a right to poolobybth n lessees the production), when inal lesseblee's l judgment om any governmental it is necessary or advisable in order to promote conservation, to properly develop or operate the land and interests to be pooled, the substances [hound by this lease, and may [over one more agency having control over such matters. Any pooling hereunder fray cover all oil and gas, or any one or more of or all zones or formations underlying all or any portion or portions of the lease premises. Any unit formed by such pooling shall be of abutting or cornering tracts and shall not exceed 640 acres for gas, gas distillate or gas condensate and shall not exceed 80 acres for any other substance covered by this lease; or vidd that if any governmental regulation or order shall prescribe a spacing pattern for the development of a field wherein the above described land, or a portion thereof, is locate , allocate a producing allowable based on acreage per well, then any such unit may embrace as much additional acreage as may be so prescribed or as may be permitte in such allocation f allowable. The area pooled and the zones or formations and substances pooled shall be set forth by lessee In a "declaration of pooling" filed for record in the county counties which the pooled is located. Such pooling shall be effective on the date such declaration is filed uniess a later effective date is specified in such declaration. In lieu of absence tohe such elsewhere whe herein specified, except shut-in gas well royalties, lessor shall receive on production from an area so pooled only such portion of the royalties which, in the pooling, payable hereunder to lessor on production from the land covered by this lease which Is placed in the pooled area as the amount of the surface acreage in effect any covered f by this lease any leasehold,placed oo in the poled area bears to the amount of the surface acreage of the entire pooled area. Nothing herein contained shall authorize or Y any royalty or other interest pooled pursuant hereto. The commencement of a well, the conduct of other drilling operations, the completion of a well or of a dry hole, or the operation of a producing well on the pooled area, shall be considered for all purposes (except for royalty purposes) the same as if said well were lo- cated on, or such drilling operations were Conducted upon, the lands covered by this lease whether or not such well is located upon or such drilling operations are conducted upon, said lands. lessee may terminate any pooling effected pursuant hereto at any time the pooled unit Is not capable of producing and no drilling operations are being conducted thereon by exe- cuting and filing of record in the county or counties in which the pooled area is located a w itten declaration of the termination of such pooling, provided that the pooling of all Interests not covered by this lease which comprise a part of such pooled unit be also terminated in some effective manner. 10. The rights of either party hereunder may be assigned In whole or in pert and the provisions hereof shall extend to their heirs, successors and assigns, but no change or division In the ownejehip of the land, rentals or royalties, however accomplished, shall operate or be construed so as to enlarge or increase the obligations or burdens of the lessee, or diminish Its rghts' S,peciiaelly, but not by way of limitation of the foregoing, the lessee shall not be required to offset wells on separate tracts into Which the land covered by this lease may 'retailer be f Eels m to furnish separate measuring or receiving tanks. Notwithstanding any actual or constructive knowledge of or notice to the lessee, no change In the ownership of said land ty M right to reaelw rentals or royalties hereunder, or any interest therein, however accomplished, shall be binding on the lessee (except at lessee's option) until thirty (30) days alter lyesee has Men furnished with written notice thereof, together with the supporting Information hereinafter referred to, by the party claiming as the result of such change In hwnsyhip or Interest. Such notice shall he supported by original or certified copies of all recorded documents and other instruments or proceedings necessary In lessee's opinion to establish the cmdnp nrn of the Claiming.party. All advance payments of rentals made hereunder within thirty (30) days after receipt of said documents shall be binding on any direct or indirect assignee, grantee, devises administrator, executor, heir or successor to the lessor. In the event of an assignment or sublease of this lease as to segregated portions of the lard above descnho-Ebvental payments hereunder shall be apportioned as to the several leasehold owners (including sublessees) ratably according to the surface area of each, are, defrill it the rental payment by ode shall not affect the rights of the other leasehold owners. II. In lhe cant sensor raiders that the lessee has failed to comply with any obligation hereunder, express or implied, lessor Shall notify lessee in welting, specifying in what respect Namur mains lessee has breached this lease. The service of such notice and elapse of sixty (60) days without lessee meeting or commencing to meet the alleged breaches shall be a eyrition µ'ecedent to any action by lessor for any Caine, If, within sixty 160) days after the receipt of such notice lessee shall meet or commence to meet the breaches alleged by lessor, lessee shall not be deemed In default hereunder. 12. if Ins& *ems a less interest than the entire fee or mineral estate (whether or not a lesser Interest is stated above), the rentals and royalties herein provided shall be paid to lessor only in the proportion that his interest bears to the entire fee or mineral estate. If, however, during the term of this lease any remnion of interest to lessor should occur, then and in that event on the nest succeeding rental anniversary after lessor shall have notified lessee of the occurrence of such reversion and shall have furnished lessee with satisfactory proof thereof, the rental shall be increased to cover the additional interest so acquired by the lessor. 13. All provisions hereof express or implied shall be subject to all federal and'state lava and the orders, rules and regulations of all governmental agencies administering the same land interpretations thereof by such agencies or Courts having jurisdiction), and this lease shall not in any way be terminated wholly Or partially ear shall the lessee be liable in duiiages for failure b comply with any of the express or Implied covenants hereof if such failure Is caused by any such laws, orders, roles or regulation (or interpretations thereof by aid agencies or courts having jurisdiction). If lessee should be patented during the last six (6) months of the printery teem hereof from drilling a well hereunder by the order of any duly cor onstituted authority having or asserting jurisdiction thereover, or if lessee should be unable during said period to drill a well hereunder due to equipment necessary In the drilling completion thereof not being available from any cause, the primary term of this lease shall continue until six (6) months after said order is suspended and/or said equipment is -available. 14. This lease and all of Its terms and conditions shall be binding upon all successors of the lessors and the lessees. Should any one or more of the parties above named as lencors fail to execute this lease, It shall nevertheless be binding upon all lesson who de execute it. Notwithstanding any language herein to the contrary, it is expressly understood and agree* that any payment or payments made by the lessee to the owner of any interest subject to this lease shall be sufficient payment hereunder as to such interest notwithstanding the joinder herein of the spouse of any such party as a µaty-lessor for the purpose of waiving homestead, dower or Inchoate rights of Inheritance, If any. 15. Lessor hereby warrants and agrees to defend the title to the land above described and agrees that the lessee shall have the right at any time to redeem for lessor, by payment, and any mortgage, than or other liens on the above described land in the event of default of payment by the lessor and the lessee shall be abrogated to the rights of the holder thereof, the lessor under the rams that this lease. wmWnts made by the lessee for the lessor may, at lessee's option, be deducted from any amoab of money which may become due or payable to IN WITNESS WHEREOF, we sign this a of the day and year first abaft seem. O.),,_, .e /may//� 9 ate Vim. .22,7 Q..._ James R. Koehler SS# S.2/ 50 O20(. Hello