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Home My WebLink About20062860.tiff 4*"iiir MEMORANDUM IYII TO: Board of County Commissioners September 14, 2006 COLORADO FROM: Jacqueline Hatch SUBJECT: USR-1455 Mineral Reserves, Inc. subsidiary of Lafarge West/ Duckworth The applicant for USR-1455, Eric Reckentine with Lafarge West has submitted the attached documentation addressing the following conditions. 1. Prior to scheduling a Board of County Commissioners hearing: A. Section 22-5-100.A of the Weld County Code states "oil and gas exploration and production should occur in a manner which minimizes the impact to agricultural uses and the environment and reduces the conflicts between mineral development and current and future surface uses." Section 22-5-100.B of the Weld County Code states "...encourage cooperation, coordination and communication between the surface owner and the mineral owner/operators of either the surface or the mineral estate." Finally, Section 22-5-100.B.1 of the Weld County Code states "new development should be planned to take into account current and future oil and gas drilling activity to the extent oil and gas development can reasonably be anticipated." The applicant shall either submit a copy of an agreement with the property's mineral owner/operators stipulating that the oil and gas activities have been adequately incorporated into the design of the site or show evidence that an adequate attempt has been made to mitigate the concerns of the mineral owner/operators. The plat shall be amended to include any possible future drilling sites. (Department of Planning Services) The applicant has submitted a signed compatible use agreement with Encana. B. The applicant shall provide the Department of Planning Services with a signed agreement between the applicant and the Idaho Creek Ditch Company or evidence that an adequate attempt to address their concerns has been made. The applicant shall contact Madoline Wallace of Bernard Lyons Gaddis and Kahn at 303-776-9900 to facilitate the obtaining of this permit. (Department of Planning Services) The applicant has submitted a letter dated January 19, 2004 from Madoline Wallace were it states "the ditch companies do not own prescriptive easements for the segment of Idaho Creek that crosses the Duckworth Property. As a result, the Ditch Companies have no opinion regarding Lafarge's proposal to mine near Idaho Creek on the Duckworth Property. However, please note that other water users may own prescriptive easements for this segment of Idaho Creek". The applicant has also submitted a letter dated September 6, 2006 from Bernard Lyons, Gaddis 8 Kahn stating that Lafarge West Inc has satisfied the requirement of the agreement with the Smith and Emmons Ditch Company. C. The applicant shall address the concerns of the State of Colorado, Division of Water Resources as stated in their referral dated December 22, 2003. Written evidence of approval shall be submitted to the Department of Planning Services. (Department of Planning Services) The applicant has submitted a substitute water supply plan dated July 20, 2005 from Dick Wolfe with the State of Colorado, Division of Water Resources. EXHIBIT 2006-2860 Are� y‘W COMPATIBLE USE AGREEMENT THIS AGREEMENT is made and entered into this 18th day of August 2005, among EnCana Oil &Gas (USA) Inc.(hereinafter referred to as"ENCANA") with an address of 370 17th Street, Suite 1700, Denver, Colorado 80202, and Lafarge West, Inc. ("LAFARGE"), with an address of 10170 Church Ranch Way Suite 200, Westminster CO 80021. RECITALS 1. LAFARGE owns the surface estate in that tract of land located in the NE/4 of Section 16,Township 2 North, Range 68 West,Weld County, Colorado as more particularly delineated on Exhibit"A"attached hereto(the"Described Premises"), and LAFARGE intends to develop the Described Premises as a gravel mine. 2. Surface operations on the Described Premises are subject to the Oil and Gas Leases described on Exhibit "B"attached hereto("Leases"), and ENCANA, as a successor mineral leasehold owner in and to the Leases,owns certain working interests in the Leases, is the designated Operator of certain wells presently located on the Described Premises, and has the continued right to conduct operations and to drill wells on the Described Premises. 3. Current Colorado Oil &Gas Conservation Commission ("Commission")rules and regulations allow the owner of the oil and gas rights under the Described Premises to drill,twin, deepen or recomplete a well for production from any of the Cretaceous Age formations within drilling locations comprised of a square with sides four hundred(400)in length,the center of which is the center of any quarter/quarter section, and a square with sides eight hundred(800) feet in length,the center of which is the center of any quarter section, ("Drilling Location Windows")as more particularly delineated on Exhibit"A". NOW THEREFORE, in consideration of the mutual benefits, covenants and the mutual promises set forth herein, including the representations set forth in the recitals,the parties agree as follows: 1. Drillsite Location and Access a. In lieu of drilling future wells as conventional vertical wells within the Drilling Location Windows insofar as the Drilling Location Windows fall within the Described Premises,ENCANA agrees to drill and complete certain wells directionally from the surface locations shown as Oil and Gas Operations Area"A" (OGOA"A")on Exhibit"A". Access to OGOA"A" shall be maintained by ENCANA, and LAFARGE shall grant and convey to ENCANA by a Right-of-Way Deed in recordable form continuous unimpeded access to OGOA"A"and associated facilities within existing access routes. b. ENCANA agrees to locate the production facilities for the wells in OGOA "A"which currently services the Duckworth B Unit#1 well in the NE/4 provided that ENCANA is able to expand those facilities to accommodate additional production and drilling. Such expansion may involve, among other things, installation and connection of flowlines, installation of additional tank batteries, separators, combustors, and water and oil tanks and fences surrounding these facilities. LAFARGE agrees that it will conduct its development and surface use in such a manner that provides ENCANA continuous access to its locations,well sites and related facilities without cost or expense to ENCANA. ENCANA shall utilize existing access roads established and maintained 1 by ENCANA. ENCANA shall not be required to pay LAFARGE any costs related to the establishment or ordinary maintenance of such access roads. c. OGOA"A" shall cover an area of approximately 400' X 400' in dimension. d. LAFARGE shall grant and convey to ENCANA easements for all pipelines at existing locations which are shown on Exhibit"A." e. There shall be a permanent circle with a 150' (one-hundred and fifty feet)radius around that certain wellhead known as the Duckworth B Unit#1 in OGOA"A" in which no structures shall be constructed by LAFARGE or any successor in interest. During gravel mining operations, LAFARGE will be allowed to remove gravel within this 150-ft.radius provided that LAFARGE provides sufficient backfill to maintain the level 150-ft. radius bordered by a slope with a ratio of three horizontal feet in length to every one foot of vertical drop. This backfill will be completed by LAFARGE within eight weeks of removal of the gravel it intends to mine within the radius and shall be at LAFARGE's sole cost and expense. Except as provided herein, LAFARGE shall not mine gravel in the OGOA. f. In the event that LAFARGE or any successor in interest of all or a portion of the Described Premises erects a fence which interferes with ENCANA's access or pipelines,the fence shall include gates or openings sufficient to provide ENCANA continuous access. g. LAFARGE will not subdivide the Described Premises in such a manner as to create lot lines for surface development within 100 feet of the OGOA. LAFARGE shall not construct or install any permanent or temporary building, structure or other improvement within the OGOA except those required for gravel mining operations contemplated herein. Upon completion of the mining, said items will be removed from the OGOA. 2. Consideration a. In consideration of ENCANA's agreement not to drill wells within the Drilling Location Windows as may be located on the Described Premises identified as the SW/4NE/4 and the SE/4NE/4, as vertical wells by conventional drilling methods, LAFARGE agrees to pay ENCANA, as operator representing owners of certain of the leasehold interest in the Leases, incremental costs of $77,500.00 U.S to defer a portion of the increased cost of directionally drilling and completing the proposed wells. EnCana will submit an invoice to LAFARGE along with an Application for Permit to Drill as approved by the Commission. LAFARGE agrees to pay the invoice within fifteen (15)business days of receipt thereof. b. LAFARGE, its successors and assigns,hereby agrees to cooperate, at ENCANA's sole cost and expense, with ENCANA in its efforts to obtain all necessary permits, licenses and other approvals from state, county and municipal authorities for applications to drill all future wells. 3. Retention of Rights-of-Way: Notwithstanding the foregoing, ENCANA retains and shall have a continuing right of ingress and egress to surface and subsurface facilities currently located or located in the future upon or under the Described Premises, including,but not limited to roads, flowlines and pipelines used in connection with wells owned and operated by ENCANA and operations that are not located on the Described Premises. The entire cost,risk and expense of rerouting any such roads, flowlines and pipelines that are existing prior the completion of mining reclamation shall be borne by LAFARGE exclusive of and in addition to that amount as set forth in Article 2 above, and all rerouting shall be subject to advance approval of ENCANA as operator 2 of such wells.Any roadway rerouted and/or relocated shall be constructed to conform to the standards of any governmental agency. The total cost of any installation and/or relocation requested by LAFARGE of any pipeline or flowline incurred by ENCANA shall be paid by LAFARGE to ENCANA upon completion or the relocation of said line(s) and within thirty(30) days after LAFARGE receives from ENCANA an invoice for such costs. In addition,immediately after the relocation of the line, the parties agree to amend any Right-of-Way Agreement affecting the Described Premises to correctly reflect the location of the relocated transmission line. LAFARGE, its successors and assigns,hereby agrees to cooperate, at its sole cost and expense, with ENCANA in its efforts to obtain all necessary permits, licenses and other approvals from state,county and municipal authorities for the relocation of the pipeline or flowline.Under no circumstances shall ENCANA be prohibited from flowing gas through its pipeline and flowline at any time. 4. Application to Governing Agencies: The Master Plan filed by LAFARGE with the State of Colorado, Weld County or any other governmental agency shall show the location of the proposed drillsites,proposed access roads and existing wellsites,pipelines and facilities which can be determined at the time of such filing. LAFARGE agrees to cooperate fully with and support ENCANA in any application for drilling and operation of oil and gas wells when presented to the State of Colorado or other appropriate governmental authority for approval and which substantially complies with the terms of this Agreement. 5. Indemnities: ENCANA, on the one hand, and LAFARGE on the other hand, shall defend, indemnify and hold the other harmless for injuries to persons and damage to property caused by its own negligence or willful misconduct or for claims for which it is strictly liable. 6. Successors and Assigns: This Agreement and all of the terms included in this Agreement shall be binding upon the successors and assigns of ENCANA and LAFARGE, and the benefits of this Agreement shall inure to such successors and assigns. 7. Covenants Run With the Land: This Agreement and all of the covenants in it shall be covenants running with the land and shall be binding on all parties who succeed to any interest of LAFARGE in the Described Premises. Any subsequent sale of the Described Premises shall be subject to the terms of this Agreement. LAFARGE agrees to provide notice to any and all mining entities, developers,homebuilders or other buyers of the Described Premises that there are likely to be oil and gas operations and production on the surface of or in the vicinity of the Described Premises; that buyers, as successors in interest to LAFARGE, will be acquiring all of the rights of LAFARGE under this Agreement and assuming those obligations undertaken by LAFARGE pursuant to this Agreement. 8. Assignment: This Agreement shall not be assigned by either party without the prior written consent of the other party,which consent shall not be unreasonably withheld. 9. Incorporation of Attachment: Exhibits"A"and"B"are hereby incorporated into this Agreement by this reference. 10. Additional Lands required for Operations: In the event that full development of the Leases requires ENCANA to conduct operations on lands in addition to those locations described and illustrated on Exhibit"A"as provided for above, ENCANA shall so notify LAFARGE. Upon notification,ENCANA and LAFARGE shall enter into good faith negotiations toward an agreement,which will provide additional surface use in a manner satisfactory to both parties. LAFARGE shall not unreasonably withhold its approval of ENCANA's additional surface use request. ENCANA shall make all reasonable efforts to limit such request for use to those portions of the Described Premises which would cause the least possible damage and least interference with 3 the other users of the Described Premises. This provision will be applicable in the event that ENCANA is unable to obtain all necessary permits required to drill from OGOA "A." 11. ENCANA's Operations: ENCANA agrees to conduct its operations in conformance with the rules and safety regulations as set forth in the Rules and Regulations, Rules of Practice and Procedure,and Oil and Gas Conservation Act, as amended of the Commission. Both parties recognize the future oil and gas operations on the Described Premises may fall under the Commission"High Density Area Rules"and by incorporating Exhibit"A" in this Agreement, LAFARGE, for itself and on behalf of all its successors and assignees in interest, agrees to forever waive the setback requirements for both wellheads and production equipment and facilities in favor of the planned location for wellheads and production facilities as specified on Exhibit"A". 12. Remedy of Default: In the event the operations of either ENCANA or LAFARGE are not at any time being conducted in compliance with this Agreement,the non-defaulting party shall notify the defaulting party in writing by certified mail of the facts relied upon as constituting a breach hereof, and the defaulting party shall within thirty(30) days after receipt of such notice commence compliance with the obligations imposed by this Agreement. If the defaulting party does not commence compliance with the obligations imposed by this Agreement within said thirty (30) day period, the non-defaulting party may enforce its rights under this Agreement. In addition, if LAFARGE does not make any payment required by Paragraph 2 of this Agreement, ENCANA may drill the well as a vertical well in the appropriate Drilling Location window by conventional drilling methods. The defaulting party agrees to pay any and all costs and reasonable attorney's fees of the other party incurred as a result of a breach of this Agreement. 13. Term: This Agreement shall become effective when it is fully executed by both parties and shall remain in full force and effect until ENCANA's leasehold estate expires or is terminated, and ENCANA has plugged and abandoned the wells and complied with the requirements of the applicable oil and gas lease pertaining to removal of equipment, reclamation, cleanup and all other applicable provisions of the lease and 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 Described Premises. 14. Entire Agreement: This Agreement sets forth the entire understanding between the parties and supersedes any previous communications,representations or agreements, whether oral or written. No change of any of the terms or conditions herein shall be valid or binding on any parties unless in writing and signed by an authorized representative of each party. 15. Notices: Notices provided for in this Agreement shall be considered given when placed in the U.S. Mail, Certified/Return Receipt with postage prepaid to the parties at the following address or addresses provided subsequently by the parties or their assigns by virtue of certified mail: ENCANA: EnCana Oil & Gas (USA)Inc. LAFARGE WEST, INC. 370 17th Street, Suite 1700 10170 Church Ranch Way Suite 200 Denver, CO 80202 Westminster, CO 80021 Attn: D-J Basin Team Lead Attn: Director of Resource Management 4 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly ^horized representative on the day and year first above written. ENCANA OIL & GAS(USA) INC. LAFARGE WEST, INC ^' / ./ /? i ` ' By: By:\---- \ ' v L- Byron R. Gale, Attorney-in-Fact C. R. Herro Director of Resource Management ACKNOWLEDGMENTS STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER ) On this day of August, 2005, before me personally appeared Byron R. Gale, who, being by me duly sworn, did say that he is an Attorney-in-Fact for EnCana Oil & Gas(USA) Inc., that he signed the foregoing instrument on behalf of said corporation and acknowledged the instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I hereunto set my hand and affixed my official seal the day and year first above written. My Commission Expires: December 5, 2005 ..— (SEAL) Notary Public: STATE OF COLORADO ) T- ) ss. COUNTY OF l7',ILL% ) I On this [,?)-1-{) day of P.U.qi T , 2005, before me personally appeared ; , c "*)110 who, being by me duly sworn, did say tha he/she is the LiA ,1. PN`i.!f'Q PPP pi)• for Lafarge West, Inc. and acknowledged that he/she executed the foregoing instrument on behalf of Lafarge West. Inc. as a free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I hereunto set my hand and affixed my official seal the day and year first above written. n t My Commission Expires: . ...! I N (SEAL) Notary Public: A )C Z l_.( i T4R, f U3 �' ,, c 5 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly prized representative on the day and year first above written. ENCANA OIL& GAS (USA) INC. LAFARGE WEST,INC. By: "h/141 • AI By: Byron R. Gale, Attorney-in-Fact C. R. Herro Director of Resource Management ACKNOWLEDGMENTS STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER On this lq day of August, 2005,before me personally appeared Byron R. Gale,who,being by me duly sworn, did say that he is an Attorney-in-Fact for EnCana Oil &Gas(USA)Inc., that he signed the foregoing instrument on behalf of said corporation and acknowledged the instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I hereunto set my hand and affixed my official seal the day and year first above written. b'^Commisston Expires: December 5, 2005 / /� (SEAL) Notary Public: MUL STATE OF COLORADO )ss. COUNTY OF ) On this day of , 2005,before me personally appeared who, being by me duly sworn, did say that he/she is the for Lafarge West, Inc. and acknowledged that he/she executed the foregoing instrument on behalf of Lafarge West, Inc. as a free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I hereunto set my hand and affixed my official seal the day and year first above written. 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Ni .1r:.._. :_ .. EXHIBIT"B" Attached to and made part of that certain Surface Use Agreement by and between EnCana Energy Resources Inc. dated and effective August 18, 2005. Oil and Gas Leases Located in Weld County, Colorado Lease 1 Date: June 17, 1980 Recorded: Book 906,reception#1827988 Lessor: Robert D. Duckworth et ux Lessee: The Vessels Company Description: Township 2 North, Range 68 West, 6e°P.M. Section 16: Lot"B"of recorded Exemption 1313-16-1-RE347, recorded November 6, 1978 in Book 850,reception#1772067, being a portion of the S/2NE/4 Section 16 T2N-R68W of 6"i P.M. 6 MEMORANDUM OF COMPATIBLE USE AGREEMENT Pursuant to the terms of that certain unrecorded Compatible Use Agreement dated and effective the 18th day of August, 2005 by and between EnCana Oil & Gas (USA) Inc.. with offices at 370 Seventeenth Street, Suite 1700. Denver, CO 80202 ("EnCana"") and Lafarge West, Inc., with offices at 10170 Church Ranch Way. Suite 200, Westminster, CO 80021 ("Lafarge"), and subject to the conditions set forth therein, EnCana and Lafarge entered into a Compatible Use Agreement ("Agreement"). The Agreement details the compatible development of oil, gas and associated hydrocarbons by EnCana and gravel mining by Lafarge. cost sharing, operational details and other matters between Lafarge and EnCana for a portion of the following described lands, to-wit: Township 2 North, Range 68 West. Weld County. Colorado Section 16: S/2 NE/4 This Memorandum of Surface Damage and Release Agreement is executed by EnCana Lafarge and is tiled of record in Weld County, Colorado for the purpose of placing all persons on notice of the existence of the Agreement. A true and complete copy of the Agreement is available at the offices of EnCana and/or Lafarge to persons with an interest in the above-described land. In witness whereof this instrument is executed effective the 18th day of August. 2005. ENCANA OIL & GAS (USA) INC. Byron R. Gale,Attorney-in-Fact LAFARG WES INe C. R. Herro, Director of Resource Management ACKNOWLEDGMENTS STATE OF COLORADO )ss CITY AND COUNTY OF DENVER ) On this day of August. 2005. before me personally appeared Byron R. Gale, known to me to be an Attorney-in-Fact of EnCana Oil & Gas (USA) Inc. and that he executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. My Commission Expires: December 5, 2005 Notary Public: -1- STATE OF COLORADO )ss ,--- COUNTY OF On this !(2 0q,day of August, 2005, before me personally appeared C. R. Hero, known to me to be the Director of Resource Management of LaFarge West, Inc, and that he executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. My Commission Expires: ±LUiU jLu v (SEAL) �� Notary Public: I > . `f,V� '�l 'f .............. f .. ... O R ; r'_ i ;, MEMORANDUM OF COMPATIBLE USE AGREEMENT Pursuant to the terms of that certain unrecorded Compatible Use Agreement dated and effective the 18th day of August, 2005 by and between EnCana Oil & Gas (USA) Inc., with offices at 370 Seventeenth Street, Suite 1700, Denver, CO 80202 ("EnCana") and LaFarge West, Inc., with offices at 10170 Church Ranch Way, Suite 200, Westminster, CO 80021 ("LaFarge"), and subject to the conditions set forth therein, EnCana and LaFarge entered into a Compatible Use Agreement ("Agreement"). The Agreement details the compatible development of oil, gas and associated hydrocarbons by EnCana and gravel mining by LaFarge, cost sharing, operational details and other matters between LaFarge and EnCana for a portion of the following described lands, to-wit: Township 2 North, Range 68 West,Weld County, Colorado Section 16: S/2 NE/4 This Memorandum of Surface Damage and Release Agreement is executed by EnCana LaFarge and is filed of record in Weld County, Colorado for the purpose of placing all persons on notice of the existence of the Agreement. A true and complete copy of the Agreement is available at the offices of EnCana and/or LaFarge to persons with an interest in the above-described land. In witness whereof this instrument is executed effective the 18'h day of August, 2005. EN NA O &rr5 A)INC. Byr n R. Gale,Attorney-in-Fact LAFARGE WEST,INC. C.R.Herro,Director of Resource Management ACKNOWLEDGMENTS STATE OF COLORADO ) )ss CITY AND COUNTY OF DENVER ) • On this 'lr- day of August, 2005,before me personally appeared Byron R. Gale, known to me to be an Attorney-in-Fact of EnCana Oil &Gas(USA) Inc. and that he executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. My omm:ssion Expires: December 5, 2005 Notary Public: w/,,(h 1111 -1- STATE OF COLORADO ) )ss �^ COUNTY.OF ) On this day of August, 2005,before me personally appeared C. R. Herro,known to me to be the Director of Resource Management of LaFarge West, Inc, and that he executed the within and foregoing instrument,and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. My Commission Expires: (SEAL) Notary Public: -- ---- -- -- ,.•,. ..,...._ Juibb(4212 P.01/04 JAFARGE NORTH AMERICA AGGREGATES, CONCRETE & ASPHALT FAX TRANSMISSION Date: 4/21/05 To: Jacquelyn Hatch Company: Weld County Planning olio- 3Of— (0411$ Fax Number: — No. of pages (including cover sheet): 4 From: Suzanne Janzen Subject: Duckworth USR-1455 Resolution Recommendation#1B—Idaho Creek Hi Jacquelyn, The following is a letter Madoline Wallace, of Bernard Lyons Gaddis&Kahn, submitted to the DMG regarding the portion of Idaho Creek that crosses the Duckworth property. The company does not claim a prescriptive easement across the Duckworth property. I will assume this letter satisfies condition#1B of the resolution unless I hear otherwise from you. Thanks, ? '" ( Suzanne Janzen Land Specialist 303-657-4421 office 303-829-6511 mobile 303-657-4037 fax LAFARGE WEST INC. -Lafarge Construction Materials 10170 Church Ranch Way, Suite 200,Westminster, Colorado 80021 Telephone: (303)657.4421 Facsimile: (303)657-4037 JOHN W.UALUIS A PROFESSIONAL CORPORATION A " Mailing address: BRADLEYSTE ATTORNEYS AND COUNSELORS.JEFFERSTI�.I .555 LONGMSTO OFFICE CO 80502-0978 WENDY SLEE RUDNIK ANTON V.DWORAK Street address: ADELE L REESTER SECOND FLOOR MADOL B4E E.S.WALLACE 515 KLMBARK STREET EVE L CANFIELD mwallace®blglaw.com January 19, 2004 Ms. Erica Crosby Division of Minerals and Geology 1313 Sherman Street, Rm. 215 Denver, CO 80203 Re: Application for Duckworth Pit Mining and Reclamation Plan (M-2003-091) Dear Erica: • As you know, I represent the Smith & Emmons Ditch Company ("Ditch Company"), which provided comments to Lafarge West, Inc.'s ("Lafarge") Application for Duckworth Pit Mining and Reclamation Plan. I reviewed your Adequacy Review Letter dated January 16, 2004 and want to clarify a point regarding ¶43 related to Idaho Creek on the Duckworth Property in the NE '/4 of Section 16, Township 2 North, Range 68 West of the 6th P.M. To aid with my point, please find enclosed a map entitled "Locations of Ditches in Relation to the Duckworth Pit." The map shows the Duckworth Property, Idaho Creek and the headgates for the Rural Ditch Company, the Godding Ditch Company and the Smith and Emmons Ditch Company ("Ditch Companies") on Idaho Creek as well as the headgate for Idaho Creek on Boulder Creek. The Ditch Companies own 130-foot-wide prescriptive easements to carry water for irrigation from the Idaho Creek headgate on Boulder Creek to their individual headgates on Idaho Creek. Because the Duckworth Property occurs downstream of the Ditch Companies' headgates, the Ditch Companies do not own prescriptive easements for the segment of Idaho Creek that crosses the Duckworth Property. As a result, the Ditch Companies have no opinion regarding Lafarge's proposal to mine near Idaho Creek on the Duckworth Property However, please note that other water users may own prescriptive easements for this segment of Idaho Creek. Please do not construe the Ditch Companies' positions for the Duckworth Pit as contradictory to the Ditch Companies' positions for the Shaw Pit. Because the proposed relocation of Idaho Creek on the Shaw Property occurs upstream of the Ditch r1 G9[u ENTS131SAEDCtDUCKILT-CROSBY RE IDAHO CREEK.DOC 1/19/04 .n .♦ • I n'.-- JCJJJJ I YGSG F .CJJ/Y'$ BERNARD LYONS GADDIS & KAHN A PROFESSIONAL CORPORATION ATTORNEYS AND COUNSELORS Ms. Erica Crosby January 19, 2004 • Page 2 Companies' beadgates on Idaho Creek, the Ditch Companies own a 130-foot-wide prescriptive easement for that segment of Idaho Creek that crosses the Shaw Property, Please call or email if you have any questions or comments. Best regards, BERNARD, LYONS, G DDIS & KAHN, a Profe : ona o $Y Madoli a .S. a i MEW:mew Enclosure cc: William L. Engelhard, President, Smith and Emmons Ditch Company Dan Grant, Secretary, Smith & Emmons Ditch Company Francis Gregerson, President, Godding Ditch Company James T. Burch, President, Rural Ditch Company Eric Reckentine, Lafarge West, Inc. Mark McLean, P.E., Tetra Tech RMC • G:ICLIENTSISISAE00I00CK\LT-CROSBY RE IDAHO CREEK.OOC I/19/04 -- JGJVJ IYGIG r.GY/GY J 1 `c J`• -fi 8` ( rW6D i A,: i%--1/41.---,----"" G J i - L r�/(� 1 �� ,1 9 yCciy �N Il I 444E \ N 0 yF�' i Y .W u :m" 1CiCW Ottil Pit \ 4900 �• Swam /) ..4 \.� . 4.,l.4II . UN BM . _. • ft443 17 ._e • 27 16 1 4 II 7= 1$ '$ o il it I N ---- .1 4 PPS a :S 11,0 o_ �J Rural Headgate \l 1 II ///J�J --- a-?. _\. s93r ��:77.2 /�J e 44692 49 n ,) . F..) Dro1Th////� /�/J y pig F ; 444 poam•N. U \ i Smith and Emmons Headgate /,/.....1:1 1/..7 pernz3a- 119 j 2 1 ��•^_ 7. • \ Via /' „ ta. / 49IS. -k Godding Headgate ) I ' *ii li Iiew Ridge ju �.�, n ≤'\# 4a r_� i 9 ;'I �. ,r,Itavol Fit , /-r+—�. �0i a 1 i i• :pe. ,`Z• i� �� 'Y vy0� Idaho Creek Headgate P./� '' 1 _p i r -•••••••., l ..• X .� lye I 1_ l ri / 1414 - y , T, / ^ ` J o+ ,,,..... LOCATION OF DITCHES IN k, ;� (" —v� o� ._� --f RELATION TO 1.13E •,...- Q ..V> s: :I e°Py t: u : / DUCKWORTH PIT J 4991 yy darnel Tom?! JUDO ,- ^7�k f in the NE 1/4 of Section 16, Tr I ./ ' j ., Township 2 North, Range 68 West / ; (' of the 6th P.M. ^^TT TOTAL P.04 Bernard Lyons Gaddis Si. Kahn A Professional Corporation �'-''"` Attorneys and Couns County Planning Department SOUTHWEST BUILDING September 6, 2006 SE(' I 2006 RECEIVED Jacqueline Hutch Planning Department Weld County Planning Department 1555 N. 17th Avenue Greeley, CO 80631 Re: Weld County Referral No. USR-1455 (Application of Mineral Reserves, Inc.) To Whom It May Concern: Lafarge West Inc./Mineral Reserves, Inc., has satisfied the requirement of the agreement with the Smith and Emmons Ditch Company by providing an Ownership and Encumbrance Report showing clear title to the property involved. The Smith and Emmons Ditch Company therefore consents to Lafarge's USR application consistent with the terms and conditions of the parties'agreement. Sincerely, BERNARD, LYONS, GADDIS& KAHN, a Professional Corporation By .-;4 Eve I. Canfield ecanfield@blglaw.com cc: Michael Refer, President,Smith & Emmons Eric Rickentine, Lafarge (VIA E-MAIL: eric.reckentine©lafarge-na.com) James King, Baker& Hostetler LLP Dan Grant,Secretary,Smith & Emmons f;\clients\s\saedc\duck\l-weld county 090606.doc 515 Kimbark Street • Second Floor • P.O. Box 978 • Longmont, CO 80502-0978 Phone: 303-776-9900 • Fax: 303-413-1003 • www.blglaw.com 1L t V v✓ JUL 2 e ZOOS STATE OF COLORADO OFFICE OF THE STATE ENGINEER Division 0'Water Resources ��' 9, Department of Natural Resources w 1.. �.. 1313 Shuman Street Room 818 Denver,Colorado 80203 phone 13031 866.3581 Sill Owens Frx:303?866-3589 Governor M.NKwater.SCite.c3.uc July 20, 2005 Russell George Executive weCIDr Hal O.Simpson. P.E. Sett Engineer Mr. Richard T. Raines, P.H. Applegate Group, Inc. • 1499 West 120th Ave, Suite 200 Denver, Colorado 80234-2759 Re: Duckworth Pit, Substitute Water Supply Plan DMG File No. M-03-091 Section 16, T2N, R68W, 6'" P.M. Water Division 1, Water District 6 Approval Period —July 20, 2005 through June 22, 2006 (October 31, 2006 if extended) Dear Mr. Raines: This letter is in response to your application of March 17, 2004 requesting a substitute water supply plan (SWSP) for a sand and gravel pit to be operated by Lafarge West, Inc. ("Applicant") in accordance with 37-90-137(11), C.R.S. The Applicants shall be responsible for compliance with this plan, but the State Engineer's Office may also pursue the landowner, for eventual compliance. The required fee of$1,343 for the SWSP has been paid. This plan describes the proposed water uses through October 2006 for this new mining operation. The proposed plan anticipates a maximum annual consumptive use of 26.9 acre- feet for up to 1.1 acres of exposed dewatering trench and sediment pond. Because this is a new mining operation, no groundwater was exposed within the permit boundary prior to January 1, 1981. You have provided a monthly breakdown of the maximum annual depletions totaling 2.8 acre-feet of evaporative loss from a maximum of 1.1 acres of exposed groundwater. 2.0 acre- feet of water used and consumed for dust control, and 22.1 acre-feet of water lost with the mined product, • This current plan anticipates dry mining of the Duckworth Pit by dewatering. The operator proposes to continuously dewater and dry mine the site. Should the dewatering cease, the maximum exposed groundwater surface area will be no greater than 37.0 acres with an annual evaporative loss of approximately 94.5 acre-feet. The Applicant has committed more than 112 acre-feet of consumptive use credit from 1.0 share of the Smith and Emmons Ditch (67.4 acre- feet per year) and 1.0 share of the Rural Ditch (45.4 acre-feet per year)to offset the evaporative depletions that would occur annually should dewatering cease. The mining operation is located more than 100 feet from the Boulder Creek. The Applicant has provided a monthly schedule of lagged depletions to the river system resulting from the operational losses at this site. The proposed replacement amount (2.4 acre-feet for July 2005 through October 2005 and 14.8 acre-feet for November 2005 through October 2006) represents Mr. Richard Raines July 20, 2005 Page 2 ^ the lagged depletions resulting from operation in 2005 and 2006. Subsequent approvals of this substitute water supply plan will be contingent upon adequate accounting of all operational depletions to the Boulder Creek system that have not been previously replaced. The proposed source of replacement for this pit is from 86.8 acre-feet of transferable consumable use associated with the dry-up of historically irrigated has already comm areas associated tied 41.4 th 2.0 shares of Rural Ditch owned by Lafarge West, Inc. The App acre-feet of this amount to the existing Heaton Batch Plant. This leaves a total of 45.4 acre- feet available to offset the depletions associated with the Duckworth Pit. The Applicant proposes to store the available consumptive use credits in Heaton Reservoir for later release to offset non-irrigation season depletions. An application for a change of water right was filed with the Division 1' Water Court under Case No. 2001 CW 194 for two shares of the Rural Ditch water and an application for a water storage right was filed under Case for No. 2001CW193 is proposed water the Heaton Reservoir. A SWSP was approved under 37-92-308(4) C.R.S. right change and storage right pending the Water Court process. The Heaton Batch Plant SWSP has an effective date of June 23, 2005 and expires on June 22, 2006. The lining of this reservoir was shown to meet the performance standard as stated by letter dated April 7,from David L. Nettles, P.E. (Office of the State Engineer) to Chris 2003 Weber (Bishop-Brogden Associates, Inc.). The monthly depletions and replacement requirements for this operation can be found on the attached Table No. 3. As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been provided to an outside consultant for review. The consultant has rommdended approval ra of i the plan by way of a draft of this letter. Based upon statutory requirements in accordance with ns of the consultant, I hereby approve the proposed substitute water supply plan Section 37-90-137(11), C.R.S., subject to the following conditions: 1. This plan shall be valid through June 22, 2006, unless otherwise revoked or modified. This plan will automatically be extended through October 31, 2006 if a court decree or a 2006 Substitute Water Supply Plan for the Heaton Batch Plant change of water right is obtained prior to June 22, 2006. If this plan will not be made absolute by a water court action by the plan's expiration date, a renewal request must be submitted to this office with the statutory fee (currently $217) by April 22, 2006 (August 31, 2006 if extended). 2. A well permit must be issued for the gravel pit in accordance with Section §37-90-137(2) and (11), C.R S prior to the exposure or use of groundwater. A well permit application was submitted to this office under receipt no. 522471 and this application is pending evaluation. Until a gravel pit well permit is approved, consumptive use and exposure of groundwater on this site is prohibited. The provisions of §37-90-137(2) C.R.S. prohibit the issuance of a permit for a well to be located within 600 feet of any existing well, unless the State Engineer finds that circumstances so warrant after a hearing held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you are able to obtain statements from the owners of all well within 600 feet, verifying that they have no objection to your use of the proposed well. Should a new well per this it b denied for reasons of 600 foot spacing, or any other legitimate reason, approval substitute supply plan will be cancelled. Mr. Richard Raines July 20, 2005 Page 3 3. The total surface area of the groundwater exposed at the Duckworth Pit must not exceed 1.1 acres resulting in a maximum annual evaporative loss of 2.8 acre-feet. 4. The annual total product mined at the Duckworth Pit shall not exceed 750,000 tons per year resulting in 22.1 acre-feet of water lost with the mined aggregate and 2.0 acre-feet of water lost due to dust suppression. 5. Total consumption at the Duckworth Pit must not exceed these aforementioned amounts unless an amendment is made to this plan. 6. Approval of this plan is for the purposes as stated herein. Any additional uses of this water must first be approved by this office. Any future historical consumptive use credits sought for this site (e.g., agricultural water transfer) must consider all previous credits applied. 7. All pumping for dust control shall be measured in a manner acceptable to the Division Engineer. 8. The replacement water that is the subject of this plan cannot be sold or leased to any other entity. As a condition of subsequent renewals of this substitute water supply • plan, the replacement water must be appurtenant to this site until a plan for augmentation is obtained. A copy of this approval letter should be recorded with the County Clerk and Recorder. All replacement water must be concurrent with depletions in quantity, timing and locations. 9. The Water Commissioners responsible for the administration of this plan are Mr. Robert Carlson, P.O. Box 380, Erie, CO. 80516, 970-438-9303 and Mr. Scott Edgar, 1735 Dolores River Drive, Windsor, CO 80550. The Applicant shall maintain daily records of all diversions, replacements, and the amount of water used for each • particular purpose. The Applicant shall provide a report of these records to the Division Engineer and the Water Commissioners on a monthly basis on a form approved by them. The accounting must be submitted within five (5) calendar days of the end of the month for which the accounting is being made. As part of the monthly accounting • prepared by the operator, the location of the discharge points from each dewatering trench must be located on a map and submitted with the accounting. 10. The name, mailing address, and phone number of the contact person who will be • responsible for operation and accounting of this plan must be provided on the accounting forms to the Division Engineer and Water Commissioners. 11. Dewatering at this site will produce delayed depletions to the stream system. As long as the pit is continuously dewatered, the water returned to the stream system should be adequate to offset the depletions. However, once dewatering at the site ceases the delayed depletions must be addressed. At least three years prior to completion of dewatering, a plan must be submitted that specifies how the post pumping dewatering • depletions will be replaced, in time, place and amount. 12. The approval of this substitute water supply plan does not relieve the Applicant and/or landowner of the requirement to obtain a Water Court decree approving a permanent plan for augmentation or mitigation to ensure the permanent replacement of all depletions, including long-term evaporation losses and lagged depletions after gravel Mr. Richard Raines July 20, 2005 Page 4 mining operations have ceased. If reclamation of the mine site will produce a permanent water surface exposing groundwater to evaporation, an application for a plan for augmentation must be filed with the Division 1 Water Court at least three (3) years prior to the completion of mining to include, but not be limited to, long-term evaporation losses and lagged depletions. If a lined pond results after reclamation, replacement of lagged depletions shall continue until there is no longer an effect on stream flow. 13. This substitute water supply plan may be revoked or modified at any time should it be determined that injury to other water rights has or will occur as a result of this plan. 14. Should this substitute water supply plan expire without renewal or be revoked prior to adjudication of a permanent plan for augmentation, all excavation of product from below the water table, and all other use of water at the pit, must cease immediately. 15. In accordance with amendments to Section §25-8-202-(7), C.R.S. and Senate Bill 89- 181 Rules and Regulations adopted on February 4, 1992, the State Engineer shall determine if this substitute water supply plan is of a quality to meet requirements of use to which the senior appropriation receiving the substitute supply has normally been put. As such, water quality data or analyses may be requested at any time to determine if the requirement of use of the senior appropriator is met. 16. The decision of the State Engineer shall have no precedential or evidentiary force, shall not create any presumptions, shift the burden of proof, or serve as a defense in any water court case or any other legal action that may be initiated concerning the substitute water supply plan. This decision shall not bind the State Engineer to act in a similar manner in any other applications involving other plans or in any proposed renewal of this plan, and shall not imply concurrence with any findings of fact or conclusions of law contained herein, or with the engineering methodologies used by the Applicant. Please contact Joanna Williams in Denver at (303) 866-3581, or Dave Nettles in Greeley at (970) 352-8712, if you have any questions concerning this approval. • erely, / /�� o fe, ,E. (J Assistant State Engineer Attachment: Table No. 3 cc: Dave Nettles, Assistant Division 1 Engineer Robert Carlson, Water Commissioner, Water District 6 Scott Edgar, Water Commissioner, Water District 5 Gary Witt, Wright Water Engineers, Inc. DMG N C E c3 c o Z c C o - D co n i- . C , Z o > 0 2 a c `Oa- v o co� � OOg N , COOCCONLOn, f� CNIT y y ea I) >> 0,0 in arm 05.,2- y o o0.w aN 7 i -c.:O . wd U s zi __ x o V7 c i C 11 t * a `0 O cWO-�,= 0 0 0 o o C o 0 0 o O 0, 0 0 0 0 O O 0 0 0 o C 0 0, a ,l E K E C. C i`•'IA. NN m N 17 Nf-) 0O n N M ap0 C70 n co. 00O r - 2 O Q 4 c _. t^ N ,- .- .— U) e0 a QN m el N .- - O 00*CO0 m, N coo 1X 0. 03, ..._ ..._ . . 0 C w' 0 -6 .n C _ O N x6 C N = O G ��` m � � v �i o e rn a � m e � g o 0 , o `0 N W l7 n l0 ` N �D O r- v7 I-. 0 0. 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BOX 758 GREELEY, CO 80631 PHONE: 970-356-4000 EXT. 4226 FAX: 970-352-0242 To: Eric Reckentine Date: October 26, 2006 Fax: (970)407-3900 Pages: 14, including cover page From: Esther Gesick, Deputy Clerk to the Board Subject: Copy of Notice and Draft Resolution COMMENTS: Eric, Per our phone conversation, I've included a copy of the Notice, Draft Resolution, verification of mailing for your review. Please update the mailing/telephone information for the corporate office on the application page and fax it back to me to update the file. Thanks! Esther CONFIDENTIAL This facsimile is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged,confidential,and exempt from disclosure under applicable law. If the reader of this facsimile is not the intended recipient nor the employee or agent responsible for delivering the facsimile to the intended recipient,you are hereby notified that any dissemination,distribution,or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone and return the original message to us at the above address via the U.S.Postal Service. Thank you. c t"'"?,1 P. 01 * TRANSACTION REPORT OCT-26-2006 THU 10:59 AM * FOR: WELD CO GOVT 9703520242 T DATE START RECEIVER TX TIME PAGES TYPE NOTE Nit DP * t * OCT-26 10:54 AM 94073900 4' 54" 14 SEND OK 491 * t t t t TOTAL : 411 54S PAGES: 14 x * x YYY1ctlK****#t1cYX*********ttYttttXXtX:K1C****ttttlKt*XXXtxYtXXttY************K****lK********lC****XttYXXxtt FAX TRANSMISSION fitit in lc^ CLERK TO THE BOARD 915 10TH STREET P. O. BOX 758 GREELEY, CO 80631 PHONE: 970-358-4000 EXT.4226 FAX: 970-352-0242 To: Eric Reckentine Date: October 26,2006 Fax: (970)407-3900 Pages: 14,including cover page From: Esther Gesick, Deputy Clerk to the Board Subject: Copy of Notice and Draft Resolution COMMENTS: Pursuant to the zoning laws c hearing will be held in the Chamber to 0 a Colorado, Weld County Centennial CE m , at the time specified. Cw ^ ; o 2 If a court reporter is desired, r I < o w e days prior to the hearing. The cost ui e 4, , '' ta a party. In accordance with the Amer n w r required in order for you to participate moo o ° _ at (970) 336-7215, Extension 4226, p wag on The complete case file may b o.tiN = z 04 LINO o �`i Commissioners, Weld County Center " +�y rna� _ 80631. E-Mail messages sent to an it OLIO — + , I-wi- To ensure inclusion of your E-Mail . ' . Zaw a to egesick@co.weld.co.us. Y :::-.:O,61 n �wm m «ra. 0 I--fa in = DOCKET#: 2006-70 u Z a �� o DATE: November 1, 2006 Z TIME: 10:00 a.m. in N o (Y U CO O u z APPLICANT: in Lu Lo co x Mineral Reserves, Inc. 1121 U N O z u do Lafarge West, Inc. J ce x U Attn: Eric Reckentine t CO Lij 1400 West 64th Avenue LIJ Z Denver, Colorado 80221 Z Q la: wd r - REQUEST: A Site Specific Develc ` Mineral Resource Development Fac... i. Zone District cm LEGAL DESCRIPTION: Lot B of it a m Section 16, Township 2 North, Range ,9p `U a °o LOCATION:North of and adjacent to v m 00 v County Road 7 (See Legal Descriptic W K BOARD OF COUNTY COMMISSIOF ' 0 LTA WELD COUNTY, COLORADO F so po mOt9 DATED: October 13, 2006 ce d PUBLISHED: October 18, 2006, in ti d thd' l11 Ca a Pursuant to the zonir - hearing will be held in the l Ft', Colorado, Weld CountyCenteni. o o at the time specified. If a court reporter is desirt ,+ 2 days prior to the hearing. The ccc 0 u party. In accordance with the Am n = 0 _- required in order for you to participate �❑ o at (970) 336-7215, Extension 4226, pric - ua°a o - The complete case file may bee 'd-sly _ _ O¢3 n - Commissioners, Weld County Centenni a pia;, wcIo o 80631. E-Mail messages sent to an ind to ,; i wit:. To ensure inclusion of your E-Mail c ow) to egesick@co.weld.co.us. ! z°¢u 0 krrN TNccwc_s in DOCKET #: 2006-70 ° i- 5 w o DATE: November 1, 2006 Z Z t!3 0 TIME: 10:00 a.m. U Z Q hi r' Z C F. 0 =- APPLICANT: F V _ C id a ° Mineral Reserves, Inc. "' "' v ° x Go Lafarge West, Inc. U N z o Attn: Eric Reckentine w w w a 1400 West 64th Avenue Denver, Colorado 80221 LL Z 0 Z It Q CI { REQUEST: A Site Specific Developr ' Mineral Resource Development Facilit '. Zone District LEGAL DESCRIPTION: Lot B of R e cm Section 16, Township 2 North, Range p ,p re 0 Ili LOCATION:North of and adjacent to V O co O County Road 7 (See Legal Descriptic CO in V BOARD OF COUNTY COMMISSIOI\ F K WELD COUNTY, COLORADO O CO & iii H . ad DATED: October 13, 2006 IX • O 0 PUBLISHED: October 18, 2006, in ti la o. V tog LIvrej stlit :o lits BOARD OF COUNTY COMMISSIONERS' SIGN POSTING CERTIFICATE THE LAST DAY TO POST THE SIGN IS ‘—c-1v22 topE; THE SIGN SHALL BE POSTED ADJACENT TO AND VISIBLE FROM A PUBLICALLY MAINTAINED ROAD RIGHT- OF-WAY. IN THE EVENT THE PROPERTY BEING CONSIDERED FOR A SPECIAL REVIEW IS NOT ADJACENT TO A PUBLICALLY MAINTAINED ROAD RIGHT-OF-WAY, THE DEPARTMENT OF PLANNING SERVICES SHALL POST ONE SIGN IN THE MOST PROMINENT PLACE ON THE PROPERTY AND POST A SECOND SIGN AT THE POINT AT WHICH THE DRIVEWAY (ACCESS DRIVE) INTERSECTS A PUBLICALLY MAINTAINED ROAD RIGHT-OF-WAY. I, Jacqueline Hatch, HEREBY CERTIFY UNDER PENALTIES OF PERJURY THAT THE SIGN WAS POSTED ON THE PROPERTY AT LEAST 1`EN�/ tFTT EN DAYS BEFORE THE BOARD OF COMMISSIONERS HEARING FOR 4S. IN THE AGRICULTURAL ZONE DISTRICT. \J L.A.); A-fl* Name of Person Posting Sign —Jacqueline Hatch Signature of Pet'on Posting Sign STATE OF COLORADO )ss. COUNTY OF WELD q The foregoing instrument was subscribed and sworn to me this icy day of 00,..: lagiZ _ , 2006. WITNESS my hand and official seal. Notary Public 0 1O My Commission Expires: r`d I`f 70“--)13 EXHIBIT imbf " .,f•6.rt: T• k Z3 { r 441+...1.1i2 ''r ,ryyr . vr.r•> ,,' , y t 4fr , J'. s '' + ."�`'` ` • � ... � ` {-;-----s...,'� t.G`'�� i+, Y ♦ ' 1. — �. \,yy '•1. "':r•'MK '.1 y ,�?V. Cy4 t •\.. Y /1. . • {' t. h ..,•£ r, 1 •.,),- iy� i ^ \ ��rrrn'nnn' \l '4yC ".. ; ` w „' \ V. L.....: ++ ' { " ,,. _- .---y ry r t S �• . ♦ls f4.h + ; •A .. '- •:' ¢-.:14Rry•aa, {a .y2 J'.' .4.-1-1,,,:' •.J -.11 s••••• _b.' 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