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HomeMy WebLinkAbout20060631.tiff 431Pett „, - . LAN__D �T__ _: IORINIIIIIIIIIIII °. �,.. : _ I � �� i loon �� � I ne I 11 I Ina IN I I I I ,bi - ,T a n.'�c+w,s.•sr _.EXHI 2006-0631 a iEZ.,:a £` � a4 S'R• Mena mc.ra®mgr.. Yx�mm�J� Ma I - ter; .. 40, _ , u el Lisp urnamas• i C • /+ t q� Prz _ Y + •• g> SFr - • 0.es • diah • y t i i �"m s ziz IIII al* , MINIUM 39672 RANGEVIEW DRIVE "i p 7 ' ^r ' a -, r. L #�4 mow: 'SGS en.' ^C. tt ".1`• :“±-::,_ �F � t s s:-, j' n ' i I I kite Via .7„ I LILEY, ROGERS & MARTELL, LLC ATTORNEYS AT L A W February 7, 2006 Weld County Planning Department CREELEY OFFICE Ms. Sheri Lockman FEB 1 0 2006 Department of Planning Services RECEIVED 918 10`(' Street Greeley, CO 80631 Re: PZ-1095, Waterford Hill PUD Dear Sheri: In connection with the County Commissioners' consideration of the Waterford Hill PUD Subdivision, enclosed please find the following documents: 1. Lease Agreement between Sonja Craighead and Gary Boxberger for the farming of Lot B. 2. Covenant prohibiting Ms. Craighead from constructing improvements or selling Lot B for a period of one (1) year. I am hopeful that the Lease and Covenant will satisfy the County's concerns that by processing an exemption and a nine lot subdivision at the same time, Ms. Craighead is attempting to evade the County regulations. As we discussed at the Planning Commission hearing, Ms. Craighead could apply for approval of nine lot subdivision one year after the approval of the exemption plat without objection from the County staff. By prohibiting the use or sale of Lot B for any purpose other than farming for a period of one year, I believe we have effectively achieved the same result. Based on the Lease and Covenants, I am hopeful that the planning staff will agree that Ms. Craighead does not intend to evade the County regulations and, thus, will be able to withdraw its objection to the creation of nine lots in the Waterford Hill PUD subdivision. I have also enclosed a Covenant executed by Ms. Craighead agreeing to accept historic runoff from Waterford Hill PUD and an Easement over Tract 13 for the benefit of the North Poudre Irrigation Company. R 1 —I— . 1 035 LUCIA A. LILEY JAMES A. MARTELL " TODD W ROGERS THE PETER ANDERSON HOUSE 300 SOUTH HOWES STREET r FORT COLLINS, COLORADO 80521 TELEPHONE:(970)221-4455 a FAX: (970)221-4242 Ms. Sheri Lockman February 7, 2006 Page 2 If you should have questions with regard to the documents, please do not hesitate to call me. I will provide the Homeowners Association Covenants, Architectural Guidelines, Articles of Incorporation, Bylaws and Resolutions to you prior to the meeting. I appreciate your assistance and cooperation in this matter. Thank you. Sincerely, 14/ 0, fre James A. Martell JAM:bkr Enclosures cc: Ms. Sonja Craighead Mr. Mary Barstow LILEY, ROGERS & MARTELL, LLC ATTORNEYS AT L A W February 8, 2006 Ms. Molly Sommerville Woodrow & Sobel, P.C. 1660 Wynkoop Street, Suite 1100 Denver, CO 80202 Re: Sonja Rose Property Township 8 North, Range 67 West Section 31: S/2SE/4; NE/4SE/4 (100 acre parcel) Weld County, Colorado Dear Molly: Enclosed please find the Agreement Concerning Certain Minerals Rights, the Surface Use Agreement, and the Memorandum of Agreement for Sonja Craighead's property in Weld County executed by Ms. Craighead. I would appreciate it if you would please revise page 1 of the Agreement Concerning Mineral Rights and the Memorandum as I have indicated to show the correct acreage, have the documents executed by Anadarko and return fully executed copies to me. I appreciate your assistance and cooperation in this matter. Thank you. S' cerely, /1/614.6ec ames A. Martell JAM:bkr Enclosure cc: Ms. Sonja Craighead Mr. Mary Barstow LUCIA A. LILEY ^ JAMES A. MARTELL +. TODD W. ROGERS THE PETER ANDERSON HOUSE c. 300 SOUTH HOWES STREET L. FORT COLLINS, COLORADO 80521 TELEPHONE: (970)221-4455 * FAX: (970)221-4242 December 28,2005 AGREEMENT CONCERNING CERTAIN MINERAL RIGHTS THIS AGREEMENT is effective this day of , 2006, by and between ANADARKO LAND CORP., formerly known as Union Pacific Land Resources Corporation ("Anadarko Land"), with an address for business of Post Office Box 1330, Houston, Texas 77251-1330 and Sonja Craighead, an individual ("Surface Owner"), with an address of 5429 East County Road 58, Fort Collins, Colorado 80524 . y A. Surface Owner owns th surface estate for property located in Weld County, Colorado, described as approximately acres in the SE/4 of Section 31, Township 8 North, Range 67 West, which Surface Owner proposes to develop and which is more specifically described in the attached Exhibit 1 and referred to hereinafter as the "Property." B. Anadarko Land owns all of the minerals exclusive of oil, gas and associated liquid hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and associated liquid hydrocarbons in the Property. C. The mineral resources exclusive of oil, gas and associated liquid hydrocarbons that underlie the Property are hereinafter referred to as the "Minerals." D. This Agreement provides for the relinquishment by Anadarko Land to Surface Owner of surface rights for the Minerals; it does not in any respect apply to the oil, gas and associated liquid hydrocarbons for the Property that are owned by Anadarko Land and Anadarko E&P Company LP, an affiliate of Anadarko Land, which are the subject of a surface use agreement among the Anadarko entities and Surface Owner. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the parties agree as follows: 1. Relinquishment and Quitclaim Document. a. Anadarko Land agrees to provide Surface Owner with a relinquishment document in which Anadarko Land relinquishes to Surface Owner the surface rights for the Minerals, generally in the form attached to this Agreement as Exhibit 2. b. Surface Owner shall pay Anadarko Land the amount of$50 an acre for the relinquishment document or the total amount of Five Thousand Two Hundred Ten Dollars ($5-24.0) for the t94,.2 acres that comprise the Property. S5za lto.y c. Surface Owner shall make the payment to Anadarko Land, and Anadarko Land shall provide the relinquishment document to Surface Owner, within thirty (30) days from the date that a local jurisdiction approves a final plat for all or any portion of the Property. 8. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of the Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 9. Notices. Surface Owner shall provide thirty (30) days advance written notice of all hearings in local jurisdictions on applications for development as defined in C.R.S. §24-65.5-101 et. seq. Notices or communications required or permitted by this Agreement shall be given in writing either by; i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered or certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: To Anadarko Land: Anadarko Land Corp. do Anadarko Petroleum Corporation Attn: Don Ballard Post Office Box 1330 Houston, Texas 77251-1330 To Surface Owner: Sonja Craighead 5429 East County Road 58 Fort Collins, Colorado 80524 Notices shall be effective upon receipt and any party may change an address by notice to the other parties. 10. Incorporation of Exhibits. Exhibits 1, 2 and 3 are incorporated into this Agreement by this reference. 11. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed as original. 3 2. Default on Payment when Due. If Surface Owner fails or refuses to make the payment described in section 1.b. within the time provided in section 1.c., the amount due shall bear interest from the date of default at the lesser rate of either twelve percent (12%) per annum or the maximum amount of non-usurious interest. Anadarko Land shall be entitled to collect all reasonable costs and expenses of collection and/or suit, including but not limited to, court costs and reasonable attorneys fees. 3. Recording of Memorandum of Agreement. A memorandum of this Agreement shall be recorded with the Clerk and Recorder of Weld County in the form attached to this Agreement as Exhibit 3. 4. Adjustment to Purchase Price. The amount of the purchase price for the relinquishment document provided for in section 1.b. shall increase each year from the date of this Agreement in accordance with the Consumer Price Index so that the amount of the purchase price due after one year from the date of this Agreement shall be the amount of the purchase price plus an amount of money which reflects the sum of the percentage of increase in the Consumer Price Index to the date that Surface Owner makes the payment. 5. Application and Term of Agreement. This Agreement and the terms included in this Agreement are conditioned upon final plat approval being given by a local jurisdiction for all or portions of the Property within three (3) years from the date of this Agreement; provided, however, this Agreement and its terms shall automatically apply to all of the Property when any portion of the Property is given final plat approval. 6. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the personal representatives, heirs, successors and assigns of the parties, and the benefits of this Agreement shall inure to their personal representatives, heirs, successors and assigns. This Agreement and all of the covenants in it shall be covenants running with the land. 7. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado. 2 12. Entire Agreement. This Agreement sets forth the entire understanding among the parties and supercedes 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 party unless in writing and signed by an authorized representative of each party. IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the dates set forth in the acknowledgements, to be effective on the date first above written. ANADARKO LAND CORP. Sift I CazL '4'• By: Name: Sonja Craighead, an individual Its: 4 ACKNOWLEDGMENTS STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2006, by , as for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2006, by Sonja Craighead, an individual. Witness my hand and official seal. My Commission expires: Notary Public 5 EXHIBIT 1 to Agreement Concerning Certain Mineral Rights effective ,2006 between Anadarko Land Corp. and Sonja Craighead Legal Description or 1: A tract of land situate in the Southeast Quarter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. BEGINNING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02' 11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angel of 15' 59' 23", and a long—chord which bears N 42' 52' 14" E 333.80 feet; thence with a line non—tangent to said curve N 90° 00' 00" E 230.27 feet to the East line of the Southeast Quarter of said Section 31; thence along said line S 02' 11' 35" W 621.74 feet to the POINT OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way. or restrictions now in use or on record. LOT 7- A tract of land situate in the Southeast Quarter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. COMMENCING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet to the TRUE POINT OF BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the South Quarter Corner of said Section 31; thence departing said line and along the North—South Centerline of said Section 31 N 01' 31' 44" E 1322.12 feet to the Center—South Sixteenth Corner; thence S 89° 52' 53" E 1255.56 feet to the Southeast Sixteenth Corner; thence N 01° 51' 37" E 1319.75 feet to the Center—East Sixteenth Corner; thence along the East—West Centerline of said Section 31 S 89' 45' 51" E 616.45 feet to the Southerly line of that tract of land conveyed in Book 1143. Page 388, at Reception No. 945957; thence along said Southerly line the following six courses: 5 45' 06' 25" E 300.46 feet. S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E 85.30 feet, S 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and S 79' 05' 25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31; thence departing said Southerly line and along said East line S 02' 11' 35" W 1663.49 feet; thence departing said East line S 90' 00' 00" W 230.27 feet;'thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angle of 15' 59' 23". and a long—chord which bears S 42° 52' 14" W 333.80 feet; thence with a line non—tangent to said curve S 02' 11' 35" W 376.92 feet to the POINT OF BEGINNING. containing 104.6817 acres, more or less. Sold tract being subject to a 30 foot wide county rood right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. Y+ 6 DECLARATION OF RESTRICTIVE COVENANT KNOW ALL MEN BY THESE PRESENTS THAT: WHEREAS, the undersigned, SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/ka/ SONJA ROSE ("the Declarant") is the owner of the real property legally described as Lot B Recorded Exemption RE-4258 ("Lot B"). WHEREAS, Lot A of Recorded Exemption RE-4258 has been divided into nine (9) lots to be known as Waterford Hill PUD ("the Subdivision"). WHEREAS, in connection with the approval of the Subdivision by the Board of County Commissioners of Weld County ("the County"), the Declarant has agreed to place certain covenants, conditions and restrictions on Lot B. NOW, THEREFORE, for and in consideration of the approval of the Subdivision by the County and other good and valuable consideration, the receipt and adequacy of which are hereby confessed and acknowledged, the Declarant hereby publishes and declares that Lot B shall be held, sold, conveyed, transferred, leased, subleased and occupied subject to the following covenants, conditions and restrictions which shall run with the land and shall be binding upon and inure to the benefit of the Declarant, the County, and all parties having any right, title or interest in or to Lot B or any portion thereof their respective heirs, personal representatives, successors and assigns: 1. Improvements. Except for the existing center pivot sprinkler located on Lot B and all appurtenances thereto, and any perimeter fencing presently located or subsequently installed on Lot B, no building, structure or other improvement shall be constructed or installed on Lot B during the term of this Declaration. 2. Conveyance. Declarant shall not sell, transfer or convey Lot B to any other person or entity during the term of this Declaration. 3. Term. This Declaration and the covenants, conditions and restrictions herein contained shall have a term of one (1) year commencing on the date this Declaration is recorded in the office of the Clerk and Recorder of Weld County, Colorado and ending one (1) year thereafter. On the first anniversary of the date of recording, this Declaration and all the terms, covenants, conditions and restrictions herein contained shall automatically terminate, become null and void, and thereafter be of no further force or effect and Lot B shall be fully and completely released from the covenants, conditions and restrictions herein contained without the necessity of the recording of any additional documents or instruments evidencing such termination. 4. Enforcement. The terms, covenants, conditions and provisions contained in this Declaration may be enforced by the County by appropriate proceeding at law or in equity against those persons or entities violating or attempting to violate any covenants, condition or restriction herein contained. Such judicial proceeding may be for the purpose of removing a violation, restraining a future violation, or for such other and further relief as may be available. In the event it becomes necessary for the County to commence an action to enforce this Declaration, the court shall award to the party that substantially prevails in such litigation all costs and reasonable attorneys' fees. 5. Binding Effect. The covenants, conditions and restrictions herein contained shall run with the land during the term of this Declaration and shall be binding upon the Declarant and inure to the benefit of the County, and their respective heirs, personal representatives, successors and assigns. IN WITNESS WHEREOF, the Declarant has executed this Declaration this (p"N' day of February, 2006. . Gt. SONJA RAaL2../ E f/k/a SONJA ROSE STONESTREET, a/k/a SONJA ROSE STATE OF COLORADO ) )ss: COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this tP da of y February, 2006, by SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/k/a SONJA ROSE. Witness my hand and official seal. My Expires: ) i-q"offPQ v�'''''' Commission o; = RARECDR •}�i /ELI //�� � '�'•• :'8 Notary Public 2 RESTRICTIVE COVENANT KNOW ALL MEN BY THESE PRESENTS THAT: WHEREAS, the undersigned, SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/ka/ SONJA ROSE ("the Declarant") is the owner of the real property legally described as Lot B Recorded Exemption RE-4258 ("Lot B"). WHEREAS, Lot A of Recorded Exemption RE-4258 has been divided into nine (9) lots to be known as Waterford Hill PUD ("the Subdivision"). NOW, THEREFORE, the Declarant hereby publishes and declares that Lot B shall be held, sold, conveyed, transferred, leased, subleased and occupied subject to the following covenants, conditions and restrictions which shall run with the land and shall be binding upon and inure to the benefit of the Declarant, and all parties having any right, title or interest in or to Lot B, the Subdivision, or any portion thereof, their respective heirs, personal representatives, successors and assigns: 1. Stormwater Runoff. The Declarant hereby consents and agrees to the discharge of stormwater runoff from the Subdivision onto Lot B in the same quantity, at the same quality, and at the same rate of flow as historically has been discharged from the real property upon which the Subdivision is located onto Lot B. 3. Enforcement. The terms, covenants, conditions and provisions contained in this Declaration may be enforced by the Waterford Hill Homeowners Association ("HOA") by appropriate proceeding at law or in equity against those persons or entities violating or attempting to violate any covenants, condition or restriction herein contained. Such judicial proceeding may be for the purpose of removing a violation, restraining a future violation, or for such other and further relief as may be available. In the event of any litigation arising out of this Restrictive Covenant, the court shall award to the party that substantially prevails in such litigation all costs and reasonable attorneys' fees. 3. Binding Effect. The covenants, conditions and restrictions herein contained shall run with the land in perpetuity and shall be binding upon the Declarant and inure to the benefit of the HOA, and their respective heirs, personal representatives, successors and assigns. IN WITNESS WHEREOF, the Declarant has executed this Declaration this 'pit day of February, 2006. �. � . SONJA RAI A , f/k/a SONJA ROSE STONESTREET, a/k/a SONJA ROSE STATE OF COLORADO ) )ss: COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this 10µ' day of February, 2006, by SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/k/a SONJA ROSE. Witness my hand and official seal. l. My Commission Expires: 11 ' 1 'O Y1 I _ ' P ��_!. ♦ �• _ - /1 ? BARBARAK .0•. No .ry Public q'•..• : 8:` P •...OF Co�oP: 2 GRANT OF EASEMENT THIS GRANT OF EASEMENT is made and entered into this (p 41 day of February, 2006, by and between SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/k/a SONJA ROSE, whose address is 5429 East County Road 58, Fort Collins, CO 80524 ("the Grantor"), and THE NORTH POUDRE IRRIGATION COMPANY, whose address is 3729 Cleveland Avenue, Wellington, CO 80549 ("the Grantee"). For good and valuable consideration, the receipt and adequacy of which are confessed and acknowledged, the Grantor has granted, bargained, sold, and conveyed, and by these presents does hereby grant, bargain, sell, convey, and confirm unto the Grantee, the Grantee's successors and assigns, forever, a nonexclusive, perpetual easement over, across, and upon Tract B, Wasterford Hills PUD, according to the recorded plat thereof, County of Weld, State of Colorado (the "Easement Premises"). The Grantee shall have the right, but not the obligation, to construct, install, maintain, repair, pave, and otherwise improve a road over, across, and upon the Easement Premises. The Grantee shall also have the right, but not the obligation, to maintain, repair and improve an irrigation ditch/canal within the Easement Premises. The Grantor acknowledges that in maintaining the Easement Premises, the Grantee may control weeds and other plant materials by burning or spraying of chemicals. The Grantor, for herself, her heirs, personal representatives and assigns, hereby releases the Grantee, its successors and assigns, from any and all damages and losses which the Grantor, her hers, personal representatives or assigns may suffer arising out of or as a result of any activity performed by the Grantee to control weeds and other growing plants within the Easement Premises including, but not limited to, damage to fences and other improvements as a result of burning of weeds and plants, and damage to trees, shrubs and grasses as a result of chemical spraying of weeds and other plant materials within the Easement Premises. IN WITNESS WHEREOF, the Grantor has executed this Grant of Easement the day and year first above written. SIN(ca:1(2ezel SONJJ G D Ida SONJA ROSE STONESTREET, f/k/a SONJA ROSE STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this /q day of February, 2006, by SONJA CRAIGHEAD, f/k/a SONJA ROSE STONESTREET, f/k/a SONJA ROSE. Witness my hand and official seal. ay.a� My commission expires: :• _j BARBARAK. i REEB Nota'ty Public °•..... FARM LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into, effective as of the <3/— day of December, 2005 ("the Effective Date"), by and between SONJA CRAIGHEAD, whose address for purposes of this Agreement is 5429 E. County Road 58, Fort Collins, CO 80524 ("the Landlord"), and GARY BOXBERGER, whose address for purposes of this Agreement is ("the Tenant"). WITNESSETH: WHEREAS, the Landlord is the owner of that certain 100 (+ or -) acre hay farm located in the County of Weld, State of Colorado, commonly known as 6691 Weld County Road 86, Fort Collins, CO 80524 ("the Property"). NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto agree as follows: 1. Lease of the Property. The Landlord does hereby lease, demise, and let unto the Tenant and the Tenant does hereby hire and take from the Landlord the Property r— on the terms and conditions herein set forth. 2. Term. The initial term of this Lease shall be for a period of one year, commencing on February 1, 2006 and ending on October 31, 2006. The term of this Lease shall automatically renew from year-to-year thereafter unless one party gives notice to the other of the termination of this Lease not less than sixty (60) days prior to the end of any lease year. 3. Taxes. The Landlord shall pay, before delinquent, all general property taxes and assessments against the Property. The Tenant shall pay, before delinquent, all personal property taxes assessed against the equipment, supplies, and other assets used by the Tenant in farming the Property. 4. Use of Premises. (a) Use. The Property shall be used for farming and for no other purposes without the prior, written consent of the Landlord. No cattle grazing shall be permitted on the Property. (b) Hazard. The Tenant shall not permit the Property to be used for any purpose which would render the insurance thereon void or make the insurance risk more hazardous. (c) Laws and Ordinances. The violation of any federal, state, county, municipal, special district, or other governmental or quasi- governmental statute, law, code, resolution, ordinance, rule, regulation, condition, restriction, or limitation (including, by example and not limitation, any criminal code, land use code, zoning ordinance, or public nuisance law) by the Tenant, any employee, agent, guest, invitee, or any other person entering upon the Property with the permission of the Tenant shall constitute a violation of this Lease. 5. Costs, Maintenance and Repair. a) Landlord shall be solely responsible for water assessments and water rental fees. b) Landlord and Tenant will equally split on a 50% x 50% basis, the expense of fertilizing the Property one time during the term of this Lease. Both parties agree to only fertilize the 70 acre portion of the Property that is not currently under contract to close on October 31, 2006. Tenant will be responsible for all coordinating of custom fertilizing, and keep the Landlord in current information on such. Landlord and Tenant will both immediately equally split the expense of such action and will not cause the other party to incur any late fees or interest charges caused by the entire fertilization bill not being paid when due. c) Tenant will, at his sole expense and labor, either disc, harrow, or aerate the entire 100 acres of the Property before the growing season begins. d) Tenant will contact the North Poudre Irrigation Company in Wellington, Colorado, to obtain updated scheduling of their running of the Cactus Hill Lateral Ditch. The scheduling of the running of water in the Cactus Hill Lateral Ditch is usually only two to three times per summer and the dates change as the summer progresses. It is therefore important and imperative for the Tenant to remain in touch with the North Poudre office throughout the summer for these changes in dates. Tenant is solely responsible for ordering and receiving all water from the Cactus Hill Lateral Ditch and North Poudre Irrigation Company. Tenant agrees to use the entire amount of water that the Landlord owns and rents on the Property and not allow water to either run down the ditch or be diverted to any other property. In the past, the North Poudre office has graciously allowed 2 the Property to catch the early water that sweeps the Cactus Hill Lateral Ditch to begin the irrigation season. Tenant agrees to use this free water if North Poudre Irrigation Company again offers it for irrigation of the Property. e) Landlord agrees to pay for all parts needed to keep the Reinke 7 arm pivot sprinkler in good working condition. f) Tenant agrees to provide all labor to keep the Reinke 7 arm pivot sprinkler in good working condition. g) Both Tenant and Landlord agree to equally, in a timely manner, split all electric bills for usage of the Reinke 7 arm pivot sprinkler. PVREA charges a monthly fee for usage from early spring through the fall season. Landlord will pay PVREA for the entire bill each month, and then provide Tenant with a copy of each bill. Upon receiving the copy of each PVREA bill, Tenant will immediately reimburse Landlord for one-half (1/2) of the amount of each of the PVREA sprinkler bills each month. It is noted that there is a service charge of about $46 (+ or -) each month from spring to fall from PVREA for the sprinkler pump, even on months it is not used, and both parties agree to split this charge. h) Tenant agrees to treat the Property in a preferential manner and use good farming skills to irrigate, cut, bale, and stack hay crop. Tenant agrees to assume all expense, labor, and responsibility for all irrigating, cutting, baling, and stacking of hay. i) Tenant agrees to equally, on a 50% x 50% basis, divide all hay with Landlord. Tenant agrees to divide all hay on a quality as well as quantity basis with Landlord. Tenant agrees to bale hay on the Property in small bales of 60-70 #'s. j) Tenant agrees to stack all of Landlord's portion of hay on the southeast corner of County Road 86, where the pivot does not reach. Tenant agrees to haul Landlord's hay to Landlord's residence at a charge of fair market value for such delivery. k) Landlord agrees that Tenant may store all or any portion of Tenant's hay on the remaining area of the 70 acres where the pivot does not reach. Tenant may store hay on the Property after the term of this Lease expires, if Landlord and Tenant have signed a 2007 lease for the 70 acres. Landlord agrees that Tenant may keep all necessary 3 equipment on the Property during the term of this Lease. Tenant fully understands and agrees that any hay and/or equipment stored on Landlord's property is stores at Tenant's full and sole risk of damage and/or theft. If Tenant desires that any portion of his hay and/or equipment be insured for damage or theft while stored on Landlord's property, then Tenant is solely responsible for such insurance policy to be kept in force. 1) Tenant is responsible to park the Reinke 7 arm sprinkler along the Property boundary to the west at the close of the 2006 farming season. Tenant is responsible for all draining and winterizing of the Reinke 7 arm sprinkler. 6. Defects; Defective Condition; Acts of Third Persons. (a) Landlord's Liability. The Landlord shall not be liable to the Tenant for any damage or injury to the Tenant or the Tenant's property occasioned by any defect or defective condition on or about the Property, or occasioned by the act or omission of any third party, or from any other cause whatsoever. (b) Waiver of Claims Against Landlord. All claims against the Landlord for any damage or injury to the Tenant or the Tenant's property are hereby expressly waived by the Tenant, except such damage or injury as may be caused by the Landlord. 7. Indemnification of Landlord. (a) Liens and Encumbrances. The Tenant shall indemnify the Landlord and the Property and all improvements thereon against all claims, liens, claims of lien, demands, charges, encumbrances, or litigation arising directly or indirectly out of or by reason of any work or activity authorized by the Tenant on the Property and shall forthwith, within ten (10) days after the filing of any lien of record, fully pay and satisfy the same and reimburse the Landlord for all loss, damage, and expense, including reasonable attorney's fees, which the Landlord may suffer or be put to by reason of any such claims, liens, demands, charges, encumbrances, or litigation. If the Tenant desires to contest any such claim or lien, the Tenant may do so after satisfactorily indemnifying the Landlord against loss or expense thereon, in which event the Landlord shall not have the right to pay such claim or lien. In the event the Tenant shall fail to pay and fully discharge any claim, lien, demand, charge, encumbrance, or litigation 4 or should proceedings be instituted for the foreclosure of any lien or encumbrance, the Landlord shall have the right, at the Landlord's option, at any time after the expiration of the ten-day period, to pay the same or any portion thereof, with or without the costs and expenses claimed by such claimant; and in making such payment, the Landlord shall be the sole judge of the legality thereof All amounts so paid by the Landlord shall be repaid by the Tenant to the Landlord upon demand. (b) Personal Injuries; Violation of Law. The Tenant shall indemnify the Landlord and the Property against any cost, liability, or expense arising out of any claims of any person or persons whatsoever by reason of the use or misuse of the Property by the Tenant shall indemnify the Landlord against any penalty, damage, or charge incurred by reason of any violation of law or ordinance by the Tenant, its agents, employees, guests or invitees. 8. Transfer or Pledge of Leasehold Interest by Tenant. The Tenant shall not assign this Lease or any interest therein, sublet the Property or any part thereof, permit any other person to occupy the Property, or encumber or hypothecate this Lease without first obtaining the written consent of the Landlord; and any assignment, subletting, occupancy, encumbering, or hypothe-cating of this Lease without such prior written consent shall, at the option of the Landlord, terminate this Lease. 9. Transfer by Landlord. In the event of a sale or conveyance by the Landlord of the Landlord's interest in the Property other than a transfer for security purposes only, the Landlord shall be relieved from and after the date specified in any such notice of transfer of all obligations and liabilities accruing thereafter on the part of the Landlord, provided that any funds in the hands of the Landlord at the time of transfer in which the Tenant has an interest shall be delivered to the successor of the Landlord. This Lease shall not be affected by any such sale; and the Tenant agrees to attorn to the purchaser or assignee, provided that all the Landlord's obligations hereunder are assumed in writing by the transferee. 10. Subordination of Lease. The Tenant shall execute any instrument permitting a mortgage or deed of trust to be placed on the Property or any part thereof as security for any indebtedness and subordinating this Lease to such mortgage or deed of trust if required to do so by the secured party. 11. Landlord's Right of Access. The Landlord shall have access to the Property, and each part thereof, during normal business hours of the Tenant for the 5 purpose of inspecting the Property and posting such notices as the Landlord may deem to be necessary for the protection of the Landlord or the Property. 12. Surrender of Property. The Tenant shall, at the termination of this Lease, vacate the Property and leave the Property and all improvements thereon in as good condition as it was in at the commencement of the term of this Lease. 13. Holding Over. No holding over by the Tenant after the expiration of the term hereof shall be considered to be a renewal or extension of this Lease unless written approval of such holding over and a definite agreement to such effect is signed by the Landlord defining the length of such additional term. 14. Hazardous Substances. (a) Tenant's Covenants. The Tenant will not allow any hazardous substance to be located on the Property and will not conduct or authorize the use, generation, transportation, storage, treatment, or disposal at the Property of any hazardous substances, except in compliance with environmental laws; provided, however, that nothing contained herein will permit the Tenant to allow any so-called "acutely hazardous," "ultra-hazardous," "imminently hazardous chemical substance or mixture," or comparable hazardous substance to be located on or about the Property. If the presence, release, threat of release, placement on the Property, or the generation, transportation, storage, treatment, or disposal on the Property of any hazardous substance as a result of the Tenant's use or occupancy of the Property (1) gives rise to liability (including, but not limited to, a response action, remedial action, or removal action) under environmental laws; (2) causes a significant public health effect; or (3) pollutes or threatens to pollute the environment, the Tenant will promptly take any and all remedial and removal action necessary to clean up the Property and mitigate exposure to liability arising from the hazardous substance, whether or not required by law. (b) Tenant's Indemnity. The Tenant will indemnify, defend, and hold the Landlord harmless from and against all damages, costs, losses, and expenses (including, without limitation, actual attorney's fees and engineering fees) arising from or attributable to (1) the existence of any hazardous substance at the Property as a result of the acts of the Tenant or its agents, employees, or contractors or the Tenant's use of the Property; or (2) any breach by the Tenant of any of the Tenant's covenants contained in this paragraph. 6 (c) Survival. The parties' obligations under this paragraph will survive the expiration of the term or other termination of this Lease. 15. Default. If the rental reserved by this Lease or other charges to be paid hereunder by the Tenant, or any part thereof, are not paid when due and shall remain unpaid for a period of ten (10) days after notice thereof in writing, or if the Tenant shall violate any other covenant, condition, or provision to be performed hereunder by the Tenant and shall fail to commence correction of such violation within ten (10) days after notice thereof in writing specifying the nature of such violation and continue to proceed diligently to complete correction of such violation within a reasonable period of time thereafter, or if the Tenant abandons the Property, or if the Tenant breaches any obligation under this Lease to be performed by the Tenant which cannot be cured, then and in any such event, the Tenant shall be deemed to be in default; and the Landlord, without further notice, may, at the Landlord's option, terminate this Lease and regain possession of the Property as permitted by applicable law. 16. Expenses of Enforcement. In the event of default in performance of any of the terms or obligations under this Lease, the party in default expressly agrees to pay all costs and expenses incurred in enforcing this Lease, including reasonable attorney's fees incurred or paid by the party not in default. 17. Quiet Enjoyment. The Landlord hereby covenants and warrants that, subject to any deeds of trust or mortgages now of record or hereafter placed of record, the Landlord is the owner of the Property; and that the Tenant, on payment of rent as herein provided and performance of the provisions hereof to be performed by the Tenant, shall and may peacefully possess and enjoy the Property during the term hereof without any interruption or disturbance. 18. Estoppel Certificate. The Tenant shall, at any time, upon not less than ten (10) days' prior written notice from the Landlord, execute, acknowledge, and deliver to the Landlord such statements in writing as may be requested by the Landlord (a) certifying that this Lease is unmodified and in full force and effect (of if modified, stating the nature of the modification and certifying that this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any; and (b) acknowledging that there are not, to the Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder or specifying such defaults, if any are claimed. 19. Waiver of Breach. No waiver of any breach or breaches of any provision of this Lease shall be constituted to be a waiver of preceding or succeeding breaches of such provision or any other provision hereof. 7 20. Time of the Essence. Time is of the essence of each and every provision hereof. 21. Amendments to be in Writing. This Lease may be modified or amended only by a writing duly authorized and executed by both the Landlord and the Tenant. It may not be amended or modified by oral agreements or understandings between the parties unless the same shall be reduced to writing duly authorized and executed by both the Landlord and the Tenant. 22. Notices. All notices or demands of any kind which the Landlord may be required or may desire to serve on the Tenant under the terms of this Lease shall be in writing and may be personally delivered to the Tenant, posted on the Property, or mailed registered or certified mail, postage prepaid, addressed to the Tenant at the address herein specified or at such other address or addresses as may from time to time be designated by the Tenant in writing to the Landlord. Service shall be deemed complete at the time of leaving of such notice as aforesaid or within three (3) days after mailing of the same. All notices and demands from the Tenant to the Landlord shall be in writing and may be similarly served on the Landlord at the address herein specified. 23. Representations and Warranties. The Tenant hereby expressly acknowledges and agrees that the Tenant has not relied upon any statements, representations, agreements, or warranties made by the Landlord or any of the Landlord's agents or employees, except as expressly set forth herein. The Tenant has inspected the Property and accepts the Property in its present condition. The Tenant expressly acknowledges that the Tenant is leasing the Property AS IS, WITH ALL FAULTS, patent and latent, without any representations or warranties by the Landlord or the Landlord's agents. The Tenant has carefully and thoroughly made every investigation and inquiry the Tenant deems necessary concerning all aspects of the Property which is or may be of concern to the Tenant, including, but not limited to, the physical condition of the Property, and all improvements thereon; the environmental condition of the Property; the location of the boundaries; the gross and net area within the Property; the nature of the soil thereof; utility extension and services; the easements, rights-of-way, and encroachments, if any; access to the Property; the zoning classifications, subdivision regulations, environmental regulations, and building code requirements applicable to the Property; the suitability of the Property for the Tenant's intended use; compliance or noncompliance with governmental rules and regulations, including, but not limited to, laws relating to land use, environmental conditions, or health or safety; and all other matters or things relating to the Property which are of concern to the Tenant. The Landlord shall have no obligation to conduct any environmental studies or investigations with respect to the Property, nor shall the Landlord have any obligations to furnish to the Tenant a survey or environmental audit, of the Property. The Tenant acknowledges that neither the Landlord nor the Landlord's agents have made any representations or 8 warranties whatsoever regarding the Property. The Tenant agrees that if the Landlord or any of the Landlord's agents have made any representations whatsoever regarding the Property, the Tenant shall not rely upon, directly or indirectly, any such representations. The Tenant assumes all risk that any adverse matter, of whatever kind or nature, including, by example and not limitation, physical and environmental conditions of the Property, may not be revealed by the Tenant's inspection and investigation of the Property. 24. Parties Bound. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and to the extent permitted by this Agreement, assigns. 25. Additional Conditions. It is understood and agreed that the upper 30 acres of the Property are currently under contract with Developer, Marvin A. Barstow ("the Developer"). The Developer and Landlord are scheduled to close no later than October 31, 2006 on the 30 acres. However, the Developer may choose to close on the 30 acres at any time before October 31, 2006 as long as he gives Landlord sixty (60) days notice of his intent to do so. Landlord agrees to immediately inform Tenant of any notice given by the Developer to close and the date closing will take place. In the event the Developer closes on the upper 30 acres of the Property during the fanning season, it is understood that the Developer has the right to terminate all farming of the 30 acres for the Developer to begin development. IN WITNESS WHEREOF, the parties hereto have executed this Farm Lease Agreement as of the day and year first above written. LANDLORD: • SONJA C I HEAD TENANT: GARY B ER E 9 Draft dated December 28,2005 SURFACE USE AGREEMENT THIS SURFACE USE AGREEMENT ("Agreement") is effective this day of , 2006, by and among ANADARKO E&P COMPANY LP ("Anadarko E&P"), formerly known as Union Pacific Resources Company, ANADARKO LAND CORP. ("Anadarko Land"), formerly known as Union Pacific Land Resources Corporation (together the "Anadarko Entities"), both with an address of Post Office Box 1330, Houston, Texas 77251-1330 and Sonja Craighead, an individual ("Surface Owner"), with an address of 5429 East County Road 58, Fort Collins, Colorado 80524. A. Surface Owner owns the surface estate for approximately 110 acres of property located in Weld County, Colorado, in the S/2SE/4 and the NE/4SE/4 of Section 31, Township 8 North, Range 67 West, which is more specifically described in the attached Exhibit 1 and referred to hereinafter as the "Property." B. The Anadarko Entities together own all of the oil, gas and associated liquid hydrocarbons that underlie the Property, and Anadarko Land owns the minerals exclusive of oil, gas and associated liquid hydrocarbons. C. Current Colorado Oil and Gas Conservation Commission rules and regulations allow the owners and/or lessees of the oil and gas for the Property to locate oil and/or gas wells in four drilling windows in a quarter section, one in approximately the center of each quarter quarter section. D. The parties enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate for the Property and to delineate the process with which they shall comply with respect to the development of the two estates. E. This Agreement is limited to the compatible development of the surface estate and the oil and gas estate for the Property; it does not in any respect apply to the minerals other than the oil, gas and associated liquid hydrocarbons owned by Anadarko Land in the Property which is the subject of a separate agreement between Anadarko Land and Surface Owner. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the parties agree as follows: 1. Oil and Gas Operations Area. a. The Anadarko Entities agree that they shall drill and/or operate oil and/or gas wells only within the one location identified on Exhibit 2, which is generally in the center drilling window in SW/4SE/4 and which is hereinafter referred to as the "Oil and Gas Operations Area." Operations and uses within the Oil and Gas Operations Area include. but are not limited to, drilling, completion, and maintenance of wells and equipment, production operations, workovers, well recompletions and deepenings, fracturing, twinning, and drilling of replacement wells and the location of associated oil and gas production and drilling equipment and facilities. b. The Oil and Gas Operations Area shall include the area which is generally in the shape of a circle with a radius of 250 feet as reflected on Exhibit 2. c. The Anadarko Entities shall continue to have the right to drill more than one well with attendant facilities within the Oil and Gas Operations Area and to deepen, recomplete or twin any well that is drilled or has been drilled, as well as to drill directional and horizontal wells that produce from and drain the Property or lands other than the Property. d. Surface Owner shall not plat any surface property line within the Oil and Gas Operations Area, and no temporary or permanent building or other structure or improvement shall be located by Surface Owner within the Oil and Gas Operations Area. The Oil and Gas Operations Area shall be for the exclusive use of oil and gas operations and production and for the location of oil and gas wells and associated oil field drilling and production equipment; provided that, the Anadarko entities understand that the Oil and Gas Operations Area is designated as open space within the subdivision. e. The Anadarko Entities shall also have the right to locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities within the Oil and Gas Operations Area. 2. Access to the Oil and Gas Operations Area. a. Access to the Oil and Gas Operations Area shall be at the location identified on Exhibit 2. b. Access may be changed by mutual agreement of Surface Owner and the appropriate oil and gas interest owners; provided however, all costs and expenses of such relocations shall be borne by the party which requests them. c. No party shall unreasonably interfere with the use by the other of an access road. d. Surface Owner shall keep the portions of access roads jointly used by both Surface Owner and the Anadarko Entities in good condition and repair until such roads are dedicated to a local jurisdiction; provided, however, if one of the Anadarko Entities causes damage to a portion of a road that is jointly used by both the Anadarko Entities and Surface Owner and which is constructed to the specifications in section 2.e.(1), the Anadarko Entities agree to promptly repair any damage which they cause which is a direct result of their use of the road. 2 e. Construction and Width of Access Roads. (1) Access roads or portions of access roads that are jointly used by the Anadarko Entities and Surface Owner shall be thirty (30) feet wide, or the width required by the County, whichever is greater, and Surface Owner shall construct or improve all paved or improved joint access roads so as to withstand the weight of oilfield equipment. Specifically, Surface Owner shall construct the roads so that they can be used to withstand the weight of 104,000 pounds and 26,000 pounds per axle. (2) Access roads or portions of access roads that are used exclusively by the Anadarko Entities shall be generally thirty (30) feet in width, and the Anadarko Entities shall install and maintain such roads or portions of roads to those state and local standards that apply to oil and gas operations. 3. Pipelines, Flowlines and Pipeline Easements. a. Flowlines and pipeline easements shall be at the locations identified on Exhibit 2. b. Locations of pipelines, flowlines and such easements may be changed by mutual agreement of Surface Owner and the appropriate oil and gas interest owners; provided, however, all costs and expenses of such relocations shall be borne by the party which requests the relocation. In the event that Surface Owner requests the relocation of a pipeline or flowline, the applicable oil company shall provide Surface Owner with a written estimate of the relocation costs which Surface Owner shall thereafter promptly remit to the oil company. The payment shall be adjusted up or down upon completion of the work and after an itemized statement is provided to Surface Owner. c. Pipeline easements shall be fifty (50) feet in width during construction activities and thirty (30) feet in width for all operations, maintenance and transportation activities. Flowline easements shall be thirty (30) feet in width for all operations. d. Pipeline and flowline easements shall be for the exclusive use of oil and gas production operations; provided, however, the easements may be shared by the oil companies and their lessees, assignees of lessees and successors and assigns. e. Surface Owner shall be entitled to reserve the right to cross the pipeline easements at approximately right angles, and Surface Owner shall also have the right to install and maintain easements that are adjacent to, but not within, the easements identified herein, for utility lines, including those for water, gas, sewer, electric, telephone, cable, television, and fiber optic and other pipelines; provided, however; i) any new underground facilities which travel along a pipeline easement identified herein shall be located a distance horizontally of at least ten (10) feet from parallel existing pipelines; ii) any new underground facilities shall have at least twenty-four (24) inches of vertical clearance between such new 3 facility and a pipeline provided for herein; and iii) any overhead power lines shall be at least twenty(20) feet above the ground. f. Surface Owner shall grant the pipeline easements (for production from the Property and/or other lands) to the Anadarko Entities at the time the Anadarko Entities request them and at no cost to them. 4. Plats and Local Applications. Surface Owner shall identify the Oil and Gas Operations Area and all access routes and pipeline easements on her plats and in all applications for development she files with a local jurisdiction, and the plats shall include restrictions that no property line or temporary or permanent building, structure or other improvement related to the surface development shall be located, constructed or installed within the Oil and Gas Operations Area. Surface Owner shall record the plats in the Office of the Clerk and Recorder of Weld County and provide written evidence to the Anadarko Entities of the recording. 5. Waiver of Surface Damage Payments. Surface Owner hereby waives all surface damage payments or other such payments for the use of the Property or portions thereof pursuant to any current or future COGCC or local regulation, state statute, common law or prior agreement for each and every well and related wellsite that is or will be drilled and located within the Oil and Gas Operations Area and for associated oil and gas equipment and facilities, flowlines, access and pipeline easements. The Anadarko Entities or their lessees or their assignees may provide a copy of this Agreement to the COGCC or any local jurisdiction, person or entity or court of law as evidence of this waiver. 6. Waiver of Setback Requirements. Surface Owner understands and acknowledges that the COGCC has rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. Surface Owner hereby waives all setback requirements in COGCC Rule 603, or any successor rule or amendment to the COGCC setback rules, and to any other state or local setback requirements that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of the Anadarko Entities to explore for and produce the oil and gas in accordance with this Agreement. Surface Owner understands that the Anadarko Entities may cite the waiver in this section 6 in order to obtain a location exception or variance under COGCC rules or from a local jurisdiction. 7. Governmental Proceedings. a. Surface Owner Will Not Obiect. Surface Owner agrees that she will not object in any forum to the use by the Anadarko Entities of the surface of the Property consistent with this Agreement and hereby waives any such right to object. Surface Owner further agrees that she will provide such other written approvals and waivers which are requested by an oil company and consistent with this Agreement, including, but not limited to, all approvals and waivers to drill a well or to conduct oil and gas operations on the Property because of any law or regulation, including any local ordinance and regulations of the COGCC, and including, for 4 example, waivers to state and local setback requirements and to any setback requirements from a surface property line or for an exception location. b. Oil Companies Will Not Object. The Anadarko Entities agree that they will not object in any forum to a request by Surface Owner to annex, zone, rezone, plat or replat all or any portion of the Property to extent such request is consistent with this Agreement. 8. Notices of Hearings. Surface Owner shall provide the Anadarko Entities with written notice not less than thirty (30) days before each hearing for consideration of a plat application or other land use application for the Property or portions of the Property to be held before a local jurisdiction. 9. Notice to Homeowners and Builders. Surface Owner shall furnish all builders and developers which purchase all or any portion of the Property and each person or entity who proposes to enter into a contract to purchase a lot which is adjacent to, or any part of which is within, 350 feet from the Oil and Gas Operations Area or a flowline or pipeline easement, with a plat that shows the locations of the Oil and Gas Operations Area and the flowlines and pipeline easements. In addition, Surface Owner shall provide written notice to all such purchasers that includes the following: i. they are not purchasing and will not own any rights in the oil, gas and mineral estate in and to the Property; ii. there may be ongoing oil and gas operations and production on the surface of the Property within the Oil and Gas Operations Area, pipelines and flowline easements and access routes; iii. there are likely to be wells drilled and additional oil and gas production facilities constructed and installed within the Oil and Gas Operations Area and additional flowlines and pipelines constructed and maintained on the Property; iv. heavy equipment will be used by the Anadarko Entities from time to time for oil and gas drilling and production operations and such operations may be conducted on a 24-hour basis; and v. homeowner associations and buyers of individual lots or homes will be subject to and burdened by all of the covenants and waivers made by Surface Owner in this Agreement, including, but not limited to those covenants and waivers; a) prohibiting the location of any temporary or permanent building, structure, or other improvement within the Oil and Gas Operation Area; b) waiving objections to the drilling of wells, the construction of facilities, and the conduct of oil and gas operations on the Property consistent with this Agreement; c) waiving surface damage payments; and d) waiving objections to the setback requirements under the rules of the COGCC or any local jurisdiction. 5 10. Notice of Oil and Gas Operations. The Anadarko Entities shall provide Surface Owner with notice of drilling operations and subsequent well operations in accordance with COGCC rules and regulations. 11. Impact Mitigation. Surface Owner shall bear all costs to install such noise and visual impact mitigation measures she desires or the local jurisdiction requires at or around the Oil and Gas Operations Area which are in excess of or in addition to those measures which are required by COGCC regulations for areas which are not high density; provided, however, the operator of the well within the Oil and Gas Operations Area shall have reasonable discretion to veto or protest the types and locations of impact mitigation measures in order to allow for safe oil and gas operations. 12. Individual Liability of Oil Companies. Nothing in this Agreement is intended to create a cause of action by any oil company against any other oil company or to enlarge or diminish any right or interest created by any agreement or lease or assignment of lease between or among any oil company. Nothing in this Agreement creates any leasehold rights or gives any mineral rights to an oil company where none exists. The liability of the Anadarko Entities and any other oil company to perform any obligation hereunder or to comply with any agreement included herein or with any state or local rule or regulation is individual and several and not joint or collective. This Agreement does not create a joint venture or partnership between or among any of the oil companies. The Anadarko entities shall in no event be liable for the acts or omissions of their lessees or farmoutees or the assignees or contractors or subcontractors of any of them. 13. Authority to Execute Agreement. Each party represents that he/she/it has the full right and authority to enter into this Agreement with respect to the surface rights or the oil and gas interests he/she/it owns in the Property, as applicable. 14. No Waiver of Rights. The Anadarko Entities do not waive the rights they have pursuant to each of their respective oil and gas interests to explore for, drill and produce the oil and gas for the Property or for ingress and egress to the Oil and Gas Operations Area, except as specifically provided in this Agreement. 15. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the subsequent lessees and assignees of lessees and also the personal representatives, heirs, successors and assigns of all of the parties, and the benefits of this Agreement shall inure to all of them. This Agreement and all of the covenants in it shall he covenants running with the land. 16. Recording. Surface Owner shall record this Agreement with the Clerk and Recorder of Weld County and provide evidence to the Oil Companies of the recording. 17. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado. 6 18. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 19. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by; i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered or certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Anadarko E&P Anadarko E&P Company LP and Anadarko Land: c/o Anadarko Petroleum Corporation Attention: Land Manager—Western Division/CBM Post Office Box 9149 Houston, Texas 77380-9149 Surface Owner: Sonya Craighead 5429 East County Road 58 Fort Collins, Colorado 80524 Any party may, by written notice as provided in this section, change the address of the individual to which delivery of notices shall be made thereafter. 20. Incorporation by Reference. Exhibits I and 2 are incorporated into this Agreement by this reference. 21. Entire Agreement. This Agreement sets forth the entire understanding among 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 party unless in writing and signed by an authorized representative of each party. 22. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original. 7 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the dates set forth in the acknowledgments, to be effective on the date first above written. ANADARKO E&P COMPANY LP By: Name: Its: ANADARKO LAND CORP. By: Name: Its: � nd`�I Sonja Cray head mdi idual 8 ACKNOWLEDGMENTS STATE OF TEXAS ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2006, by , as for ANADARKO E&P COMPANY LP. Witness my hand and official seal. My Commission expires: Notary Public r—. STATE OF TEXAS ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2006, by as for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public 9 STATE OF COLORADO ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2006, by Sonja Craighead, an individual. Witness my hand and official seal. My Commission expires: Notary Public 10 EXHIBIT 1 to Surface Use Agreement effective ,2006 between and among Anadarko E&P Company LP, Anadarko Land Corp., and Sonja Craighead Legal Description OT r A tract of land situate in the Southeast Quarter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. BEGINNING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02° 11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, o central angel of 15' 59' 23", and a long—chord which bears N 42' 52' 14" E 333.80 feet; thence with a line non—tangent to said curve N 90' 00' 00" E 230.27 feet to the East line of the Southeast Quarter of said Section 31; thence along said line S 02' 11' 35" W 621.74 feet to the POINT OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. LOT 2 A tract of land situate in the Southeast Quarter of Section 31, Township 8'North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" 'N and with all bearings contained herein relative thereto. COMMENCING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90° 00' 00" W 448.00 feet to the TRUE POINT OF BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the South Quarter Corner of said Section 31; thence deporting said line and along the North—South Centerline of said Section 31 N 01' 31' 44" E 1322.12 feet to the Center—South Sixteenth Corner; thence S 89' 52' 53" E 1255.56 feet to the Southeast Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth Corner; thence along the East—West Centerline of said Section 31 5 89' 45' 51" E 616.45 feet to the Southerly line of that tract of land conveyed in Book 1143, Page 388, at Reception No. 945957; thence along said Southerly line the following six courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E 85.30 feet, 5 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and 5 79" 05' 25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31; thence departing said Southerly line and along said East line S 02' 11' 35" W 1663.49 feet; thence departing said East line S 90' 00' 00" W 230.27 feet;"thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, o central angle of 15' 59' 23", and a long—chord which bears S 42' 52' 14" W 333.80 feet; thence with a line non—tangent to said curve S 02° 11' 35" W 376.92 feet to the POINT OF BEGINNING, containing 104.6817 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. 11 EXHIBIT 2 to Surface Use Agreement effective ,2006 between and among Anadarko E&P Company LP, Anadarko Land Corp., and Sonja Craighead Oil and Gas Operations Area EXHIBIT orPaoaoSxn OrliataittowsAR a1.Ma SW Or manly" T B'IN,'IR 67 s '. SW-*:Or Tai'sot ,3 SECTION 01,.TS'ii:W 57 W NLLL --il IF--iPR�4f,N' Si'4fL5a WELD COUNTY ROAD 66 DATE:07-25-05 TITLE:EXHIBIT ' SCALE:1"=30CE BOOK:N/A DRAWN:RJL CLIENT:BARSTOW PROJECT:05-2416 1// RJL SURVEYS - >\ FORT COLLINS, COLORADO 113 CAMERON DRIVE, SUITS `/�—/ e052s .(470)225-4097 12 EXHIBIT 3 to Agreement Concerning Certain Mineral Rights effective ,2006 between Anadarko Land Corp. and Sonja Craighead MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is effective this day of 2006, by and between ANADARKO LAND CORP., formerly known as Union Pacific Land Resources Corporation ("Anadarko Land"), with an address for business of Post Office Box 1330, Houston, Texas 77251-1330 and Sonja Craighead, an individual ("Surface Owner"), with an address of 5429 East County Road 58, Fort Collins, Colorado 80524. Iio.y A. Surface Owner owns the surface estate for property located in Weld County, Colorado, described as approximately t9Qacres in the S/2SE/4 and the NE/4SE/4 of Section 31, Township 8 North, Range 67 West, which Surface Owner proposes to develop and which is more specifically described in the attached Exhibit A and referred to hereinafter as the "Property." B. Anadarko Land owns all of the minerals exclusive of oil, gas and associated liquid hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and associated liquid hydrocarbons for the Property. .-� C. The mineral resources exclusive of oil, gas and associated liquid hydrocarbons are hereinafter referred to as the"Minerals." D. Anadarko Land and Surface Owner have entered into an agreement that provides for the sale by Anadarko Land to Surface Owner of certain surface rights associated with the Minerals that is entitled "Agreement Concerning Certain Mineral Rights" ("Agreement"). E. The oil, gas and associated liquid hydrocarbons that underlie the Property are not the subject of the Agreement; however, they are the subject of a surface use agreement among Anadarko Land, Anadarko E&P Company LP (an affiliate of Anadarko Land) and Surface Owner. F. The parties desire, through the execution and recording of this Memorandum, to reaffirm and give notice of the Agreement and the rights and interests created in the Agreement. NOW, THEREFORE, in consideration of the covenants and mutual promises set forth in the Agreement and this Memorandum of Agreement, including in the recitals, the parties agree as follows: 1 . Anadarko Land has granted to Surface Owner the right to purchase a relinquishment document for the surface rights for the Minerals under the terms, provisions and 1 conditions set forth in the Agreement. r 2. This Memorandum is not a complete summary of the Agreement and shall not be used in interpreting the provisions of the Agreement, nor in any way or manner does it amend, modify or affect the terms, provisions, conditions and exceptions of the Agreement, and the Agreement shall govern and control in all respects, the duties, obligations, covenants, warranties and agreements of the parties. 3. Exhibit A is incorporated into this Memorandum by this reference. 4. This Memorandum shall be recorded in the Office of the Clerk and Recorder of Weld County. 5. This Memorandum may be executed in counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the dates set forth in the acknowledgements, to be effective on the date first above written. ANADARKO LAND CORP. • 4-71/./e{ , lzra ei z By: Sonja Crafghea , and idual Name: Its: 2 ACKNOWLEDGMENTS STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2006, by as for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2006, by Sonja Craighead, an individual. Witness my hand and official seal. My Commission expires: Notary Public 3 EXHIBIT A to Memorandum of Agreement effective , 2006 between Anadarko Land Corp. and Sonja Craighead Legal Description LOT1: A tract of land situate in the Southeast Quarter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. BEGINNING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02° 11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angel of 15' 59' 23", and a long—chord which bears N 42° 52' 14" E 333.80 feet; thence with a line non—tangent to said curve N 90° 00' 00" E 230.27 feet to the East line of the Southeast Quarter of said Section 31; thence along said line S 02° 11' 35" W 621.74 feet to the POINT OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. LOT 2: A tract of land situate in the Southeast Quarter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. COMMENCING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90° 00' 00" W 448.00 feet to the TRUE POINT OF BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the South Quarter Corner of said Section 31; thence departing said line and along the North—South Centerline of said Section 31 N OF 31' 44" E 1322.12 feet to the Center—South Sixteenth Corner; thence S 89° 52' 53" E 1255.56 feet to the Southeast Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth Corner; thence along the East—West Centerline of said Section 31 S 89° 45' 51" E 616.45 feet to the Southerly line of that tract of land conveyed in Book 1143. Page 388, at Reception No. 945957; thence along said Southerly line the following six courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E 85.30 feet, S 73' 07' 25" E 48.80 feet, N 88' 40' 35" E 78.70 feet, and S 7W 05' 25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31; thence departing said Southerly line and along said East line S 02' 11' 35" W 1663.49 feet; thence departing said East line S 90' OD' 00" W 230.27 feet;"thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angle of 15' 59' 23", and a long—chord which bears S 42' 52' 14" W 333,80 feet; thence with a line non—tangent to said curve S 02° 11' 35" W 376.92 feet to the POINT OF BEGINNING, containing 104.6817 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. EXHIBIT 2 to Agreement Concerning Certain Mineral Rights effective ,2006 between Anadarko Land Corp. and Sonja Craighead RELINQUISHMENT AND QUITCLAIM THIS RELINQUISHMENT AND QUITCLAIM is effective this day of , 2006, by and between ANADARKO LAND CORP., formerly known as Union Pacific Land Resources Corporation, with an address of Post Office Box 1330, Houston, Texas 77251- 1330 (hereinafter "Anadarko Land"), and Sonja Craighead, an individual, with an address of 5429 East County Road 58, Fort Collins, Colorado 80524 (hereinafter "GRANTEE"). WITNESSETH: RECITALS 1. The lands which are the subject of this Relinquishment and Quitclaim are the lands that are described on attached Exhibit A and are hereinafter referred to as the "Subject Lands." 2. By deed dated March 29, 1906 recorded on April 9, 1906 in the Office of the Clerk and Recorder of Weld County in Book 233, Page 24, Union Pacific Railroad Company conveyed to Burton S. Sanborn certain real estate in Weld County, Colorado, a portion of which are the Subject Lands. Said deed was made subject to the reservation by the grantor of, among other things, "(a)11 coal and other minerals within or underlying said lands." 3. By quitclaim deed dated April 1, 1971 recorded on April 14, 1971 in the Office of the Clerk and Recorder of Weld County in Book 644, Reception No. 1565712, Union Pacific Railroad Company quitclaimed to Union Pacific Land Resources Corporation. all of its right, title, and interest in and to certain real estate in Weld County, Colorado, a portion of which was the Subject Lands. 4. This Relinquishment and Quitclaim relates to surface entry only for the minerals excusive of oil, gas and associated liquid hydrocarbons that Anadarko Land owns in the Subject Lands. The minerals exclusive of oil, gas and associated liquid hydrocarbons are hereinafter referred to as the "Minerals." RELINQUISHMENT AND QUITCLAIM NOW THEREFORE, Anadarko Land, for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration to it paid, the receipt of which is hereby acknowledged, has RELINQUISHED and forever QUITCLAIMED, and by these presents does RELINQUISH and forever QUITCLAIM unto GRANTEE, her grantees, successors and assigns, with respect to the Subject Lands only, the right to enter upon the surface of the Subject Lands to explore for and remove the Minerals by virtue of the reservation contained in the deed described in Recital 2, it being the intent hereof to relinquish only the right to enter upon the surface of the Subject Lands to explore for and remove the Minerals, and to leave in full force and effect all other rights reserved to Union Pacific Railroad Company in that deed, it being expressly understood that Anadarko Land's title to the Minerals shall be in no way affected and that Anadarko Land and any lessee, licensee, successor or assign of Anadarko Land shall have the right to remove the Minerals from the Subject Lands by subterranean entries, by means of operations conducted on the surface of other lands or otherwise by any means or methods suitable to Anadarko Land, its lessees, licensees, successors and assigns, but without entering upon or using the surface of the Subject Lands, and in such manner as not to damage the surface of the Subject Lands or to interfere with the use thereof by GRANTEE, her grantees, successors and assigns. This Relinquishment and Quitclaim is made subject to the specific understanding that all of the terms, conditions, provisions and reservations contained in the deed dated March 29, 1906 referenced in Recital 2 and not heretofore relinquished shall continue in full force and effect with respect to all lands conveyed thereby and not covered by this Relinquishment and Quitclaim, and it is further specifically understood that all the terms, conditions, provisions and reservations contained in that deed and not relinquished hereunder shall continue in full force and effect with respect to the Subject Lands. IN WITNESS WHEREOF, Anadarko Land has executed this Relinquishment and Quitclaim on the date set forth in the acknowledgment, to be effective on the date first written above. ANADARKO LAND CORP. By: Name: Its: 2 STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2006, by , as for ANADARKO LAND CORP. My Commission expires: Witness my hand and official seal. Notary Public 3 EXHIBIT A �.. to Relinquishment and Quitclaim effective , 2006 between Anadarko Land Corp. and Sonja Craighead Legal Description LOT 1: A tract of land situate in the Southeast Quorter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. BEGINNING at the Southeast Corner of said Section 31; thence along the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet; thence departing said line N 02' 11' 35" E 376.92 feet; thence 334.89 feet along a non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angel of 15' 59' 23", and a long—chord which bears N 42° 52' 14" E 333.80 feet; thence with a line non—tangent to said curve N 90° 00' 00" E 230.27 feet to the East line Of the Southeast Quarter of said Section 31; thence along said line S 02' 11' 35" W 621.74 feet to the POINT OF BEGINNING, containing 5.7186 acres, more or less. Said tract being subject to a 30 foot wide county rood right—of—way on the most Easterly and Southerly lines and any easements, rights-of—way, or restrictions now in use or on record. LOT 2: A tract of land situate in the Southeast Quorter of Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado, described as follows: Considering the South line of the Southeast Quarter of said Section 31 as bearing N 90' 00' 00" W and with all bearings contained herein relative thereto. COMMENCING at the Southeast Corner of said Section 31; thence olong the South line of said Southeast Quarter N 90' 00' 00" W 448.00 feet to the TRUE POINT OF BEGINNING; thence continuing along said line N 90' 00' 00" W 2047.98 feet to the South Quarter Corner of said Section 31; thence departing said line and along the North—South Centerline of said Section 31 N 01' 31' 44" E 1322.12 feet to the Center—South Sixteenth Corner; thence S 89' 52' 53" E 1255.56 feet to the Southeast Sixteenth Corner; thence N 01' 51' 37" E 1319.75 feet to the Center—East Sixteenth Corner; thence along the East—West Centerline of said Section 31 S 89' 45' 51" E 616.45 feet to the Southerly line of that tract of land conveyed in Book 1143, Page 388, at Reception No. 945957; thence along said Southerly line the following six courses: S 45' 06' 25" E 300.46 feet, S 55' 29' 25" E 123.60 feet, S 65' 33' 25" E 85.30 feet, S 73' 07' 25" E 48.80 feet, N 86' 40' 35" E 78.70 feet, and S 79° 05' 25" E 117.70 feet to the East line of the Southeast Quarter of said Section 31; thence departing said Southerly line and along said Eost line S 02' 11' 35" W 1663.49 feet; thence departing said East line S 90' 00' 00" W 230.27 feet;'thence 334.89 feet along o non—tangent curve, concave to the Northwest having a radius of 1200.00 feet, a central angle of 15' 59' 23", and a long—chord which bears S 42' 52' 14" W 333.80 feet; thence with a line non—tangent to said curve S 02' 11' 35" W 376.92 feet to the POINT OF BEGINNING, containing 104.6817 acres, more or less. Said tract being subject to a 30 foot wide county road right—of—way on the most Easterly and Southerly lines and any easements, rights—of—way, or restrictions now in use or on record. Exhibit J is oversized Final Landscape Plan Please see original in File Hello