HomeMy WebLinkAbout20021723.tiff ME Banks and Gesso, LLC 720 Kipling St.,Suitel n
Lakewood, Colorado 80215
(303)274-4277
Fax(303)274-8329
www.banksandgesso.com
August 25, 2000
Mr. Don French
HS Resources, Inc.
1999 Broadway, Suite 3600
Denver, CO 80202
RE: Revised Reclamation Map
Proposed Kurtz Ranch Sand and Gravel Mine
Dear Don,
Attached, please find a revised map that incorporates the changes discussed at out
last site meeting. Specific changes are :
r--
• The mitigated wetlands at the northeast corner will not cross your pipeline
corridor.
• The drilling pad for Well B/R"B" has been increased
If you have any questions or comments, please feel free to call.
Stan Peters, P.E.
Cc: Norm Roche, Aggregate Industries, Inc.
= EXHIBIT
2002-1723 F
Ciselly3/7
Davis Graham & Stubbs LLP
December 14, 2000
Colorado Mined Land Reclamation Board
Division of Minerals and Geology
1313 Sherman Street, Room 215
Denver, Colorado 80203
Re: Gravel Mine in Sections 20 (E/2) and 21 (W/2)
Township 3 North. Range 67 West, Weld County, Colorado
To Whom It May Concern:
This law firm represents HS Resources, Inc. ("HSR"). HSR is concerned about a
proposed gravel mine on the above captioned lands insofar as the proposed development is
located on lands where HSR owns valuable oil and gas rights, including pipeline easements and
the right to further develop the oil and gas resources underlying Sections 20 and 21. A copy of a
Notice of Right to Use Surface of Lands indicating leases and future drillsite locations is
enclosed for your review, as well as certain pipeline easements, including easements granted by
virtue of the enclosed oil and gas leases.
At the present time, HSR and the surface owner have not executed a surface use
agreement covering the proposed gravel mine. HSR requests that any permit approved by your
agency adequately accommodate HSR's rights or be contingent upon the execution of a surface
it EXHIBIT
• F341042t 1 I r-(St 17517
Ikeemhcr u.'_reel uDI pn, Dustin M Ammons 303 892 7488 dustutammons@dgslawcorn
1550 Seventeenth Street • Suite 500 • Denver.Cplorado 80702 • 303 892 9400 • ;.,.303 893 1379
wwv..d o sla w.con'
December 14, 2000
Page 2
use agreement between the surface owner and HSR which addresses HSR's oil and gas rights in
Sections 20 and 21.
Very truly yours,
entel-are'47,1,+7
Dustin M. Ammons
for
DMA/jw DAVIS GRAHAM&STUBBS LLP
Enclosures
cc: Weld County Department of Planning Services
1555 North 17th Avenue
Greeley, CO 80631
Mr. Donald L. Jones - Manager
McFeeders Realty, Appraisal and Management, LLC
221 West Platte Avenue
•
Fort Morgan, Colorado 80701
Mr. Stan Peters
Banks and Gesso
720 Kipling, Ste. 117
Lakewood, Colorado 80215
J. Wason of HS Resources
(without attachments)
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REALTY APPRAISAL & MANAGEMENT LLC
"Serving customers from the plains to the rockies"
January 29, 2001
R. Gregory Stutz
Stutz, Miller, & Ourtz, L.L.C.
Attorney's at Law
1660 Lincoln Street, Suite 2850
Denver,CO 80264
RE: AGGREGATE INDUSTRIES WEST CENTRAL REGION INCORPORATED
(CAMAS COLORADO, INC. KURTZ SAND & GRAVEL LEASE
Dear Greg:
I am in receipt of your faxed 3r°Amendment to the Sand and Gravel Lease. i am awaiting receipt
of approximately four executed original copies. In addition, we have received the $10,000.00
wire transfer funds in our account. I appreciate you attention to this matter. Please forward four
executed copies of the 3'(1 Amendment. I will forward the originals for the Lessor's execution. I
presume the originals will be coming relatively soon as I received your fax January 22, but have
yet to receive any originals by mail. It is my intent to forward this information to Wally Grant
for his review before the Lessor's execute the original copies.
It is my understanding we are currently going to proceed under the following arrangements. We
have reached basically a preliminary agreement with the City of Firestone between the Lessors,
Aggregate Industries and the City of Firestone concerning the use of their right-of-way through
the Kurtz property and crossing the right-of-way during the gravel mining operation. It is my
understanding you are to draft a proposed agreement and forward it to Wally Grant for his
review and subsequently to the City of Firestone. I am hopeful this agreement can be prepared,
reviewed by Wally and off to the City of Firestone in a relatively short period of time. It is my
understanding all parties associated with this gravel mining project have agreed in principal. I
would like to get the agreements formalized so we can proceed with submitting the gravel
mining permitting application. It is my intent to review and forward to Wally Grant the
proposed agreement which was provided by HS Resources previously. HS Resources has
indicated to me if we can reach an acceptable agreement with them, with mining and reclamation
plans attached,they have no problem and will have objection with our gravel mining permit
application. As a result, I am hopeful we can prepare from HS's original proposal agreement m rn
which will be acceptable to all parties. As soon as I have the agreement reviewed I will forward
K �
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neitimetcresies
221 W.Platte Avenue • Fort Morgan,Colorado 80701•(970)867-7816•FAX(970)867-0801•email:mcfeeders@twolcom S
•
it onto Wally. We will subsequently forward an agreement acceptable to the Lessor's and to
Aggregate Industries for your review.
It appears these are the final two obstacles submitting the permit application. I am hopeful we
can complete these items and proceed soon. If there are any questions or if I can assist in
expediting this matter any further, please don't hesitate to contact me. Thank you.
Sincerely,
Donald L. Jones
Dlj/jlh
Cc: Wally Grant •
Norm Roche
Paul Banks
file
LTVF
w - •
REALTY APPRAISAL & MANAGEMENT LLC
"Serving customers from the plains to the rockies"
February 5, 2001
Wally,Grant
•
436 Coffman St, Suite 200
Longmont, CO 80502-0908
RE: KURTZ MINING GRAVEL MINING LEASE HS RESOURCES HAS PURPOSED
OPERATING AGREEMENT
Dear Wally:
I have enclosed an edited copy of the HS Resource agreement submitted to us back in July. I
have modified the agreement in red ink where I felt changes are needed. Please review my
changes and modify the agreement further from the surface owner's perspective.
The procedure, as I understand it, is our modified version of the agreement is to be forwarded to
Aggregate Industries,Norm Roche, and Greg Stutz for their review. Once it is acceptable to us
and CAMAS it is to be submitted to HS Resources as our proposed operating agreement for the
gravel mining operation. My last conversation with HS Resources' representative was with an
individual by the name of Jim Wasson. He apparently is the top guy in Colorado and is Don
French's supervisor. I suggest we submit the proposed draft to Mr. Wasson to expedite the
process. My conversation with Mr. Wasson disclosed HS's position is an acceptable operating
agreement must be in place complete with the proposed mining plan and reclamation plan before
HS releases their objectives to the mining permit application. I have attempted to modify the HS
agreement to accommodate all parties interests.
Hopefully, your edit and modification of the agreement can be accomplished within a relatively
short period of time. As of this writing I currently do not have the original copies of the 3r°
Amendment to our Sand and Gravel Lease. I am awaiting receipt of those from either Mike
Reifer or Greg Stutz. In any event, I will handle the mechanics of Lease Amendments as soon as
I receive the original executed copies from Aggregate Industries. In addition, my most recent
letter to Mr. Stutz indicated we are still awaiting his draft of the proposed agreement with the
City of Firestone for your review. Once you review the Firestone agreement it is to be forwarded
on to legal council for Firestone in an effort to get this agreement in place prior to submission of
. EXHIBIT
221 W.Platte Avenue • Fort Mor
gan,Colorado 80701•(970)867-7816•FAX(970)867-0801•email:mcfeeders Ust'_ Itati 7
•
the mining application. I am hopeful we can proceed on the mining process as a result of these
efforts. If there is a additional items I need to complete, please contact me. Thank you.
Sincerely,
�rlr"--
Donald L. Jones /✓✓✓/////
DIj/jlh
Cc: Paul Banks
Mike Reifer
Norm Roche
file
•
ME Banks and Gesso, LLC 720 Kipling SL,Suite117
Lakewood, Colorado 80215
(303)274-4277
Fax(303)274-8329
www.banksandgesso.com
Transmittal
To: Don French
HS Resources
1999 Broadway, Suite 3600
Denver, CO 8 202
From: Alex Scha
Date: 9 February 2001
cc: 98023 —Other Correspondence
Re: Mining and Reclamation Plans,
Kurtz Ranch Sand and Gravel Mine, Weld County, Colorado
Enclosures Copies Please Urgent
1. Draft mine plan Reply
2. Draft reclamation plan
At your request, please find the enclosed Mining and Reclamation Plans for the Kurtz Ranch
property. These drawings may be considered 95% complete, and we do not anticipate that
further revisions will change the position of mining cells or proposed lakes and wetland areas.
If you have questions related to these maps or the permitting process for this site, please do
not hesitate to call myself or Paul Banks at 303/274.4277.
[2. EXHIBIT
1.t50103,7
03/06/2001 11:30 970867E - MCFEEDERS REAL^ PA( 82
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AE are Fr
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REALTY APPI$ pitituf
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"Serving customer from
March 6, 2001
•
•
Donald French �6(/
HS Resources,In
1999 Broadway, : trite 3600
Denver, CO 8020
•
RE: KURTZ GL AVEL MINE SURFACE USE AGREEMENT AND LINE
EXPANSION 11 OJECT
Dear Don:
As per our telepb••ne conversation, I am forwarding to you a proposed copy of the
Surface Use Agre invent.This Agreement has been modified and reviewed by Wally
Grant,counsel for 'the landowners. We are corhfortable with the draft we are submitting
to you. Once you 18VC reviewed it,please give me call so we can set up an appointment
on site to take car:of the arrange eras with expanding your flow line sizes. I am
hopeful all parties can execute this agreement and we can execute an agreement for your
expansion of flow lines and get this matter taken care of to the benefit of all parties
concerned. If yot have any questions,or would like to discuss the agreement thither,
please contact me at 970-867-7816.Thank you.
•
Sincerely,
Donald L. Jones
Cc:Norm Roche .
Paul Banks
•
g. EXHIBIT
•
•
221 W.Platte Avenue • F. Y Morgan,Colorado 80701•(970)867-7816-FAX(970)867-0801•Web:wwwrmdeeders woLcam
03/06/2001 11:30 970867&.,1 MDERS REAL. PAGE 03
SURFACE USE AGREEMENT
(Existing Wells and Future Wells)
This Surface Use Ag eement ("Agreement") is made this day of , 2001,
and is between HS F.esources, Inc. ("HSR"), with an address of 1999 Broadway, Suite 3600,
Denver, Colorado 80::02, Camas Colorado, Inc.,Aggregate Division("Camas"), with an address
of 3605 South Teller.Street, Lakewood, Colorado 80235, and Elverna Burchfield Living Trust
and Sherry Redmond. D/B/A Kurtz Cattle Company (Surface Owner) with an address of c/o
McFeeders Realty, .(.ppraisal & Management, LLC, 221 West Platte Avenue, Fort Morgan,
Colorado 80701.
•
A. Surface Owner is.the owner of the surface and Camas will mine a parcel located in Section
20 and W/2 Section::21, Township 3, North, Range 67 West, Weld County, Colorado, (Property)
more clearly describe i in Exhibit A attached hereto and incorporated herein by this reference.
B. Surface Owner's.)wnership of the Property and Camas' mining operations on this Property
are subject to the righ s of the oil and gas mineral estate which has been leased to HSR;
C. CAMAS will apply for and obtain a raining permit for an open cut gravel mine and batch plant
known as the"Kurtz stanch Sand and Gravel Mine(Mine)";
D. HSR has the righ:to deepen, recomplete or rework the existing oil and gas wells ("Existing
Wells") on the Property;
E. HSR bas the rig a to develop its oil and gas leasehold estate by drilling additional wells
(hereinafter referred o as "Future Wells") on the Property and/or deepening, recompleting, or
reworking these Futu e Wells;and
F. This Agreement lets forth the parties' rights and obligations ing the relationship
between the development of the Property by Camas and Surface OwnerHSR's operation and
development of its of and gas leasehold estate.
In consideration of the mutual covenants contained herein, and other good and valuable
consideration, the reci:ipt and sufficiency of which is hereby acknowledged, the parties agrees as
follows:
1. AREAS RESER 1ED.
Camas and Surface Owner shall provide HSR no less than a 200 foot radius around Existing
Wells (the "Oil and (;as Operation Areas") as described by HSR for the-Existing Wells and for
the Future Wells,joii:tly the("Wells") for any operations conducted by HSR in connection with
any Wells, including, but not limited to, lease operating activities, new drilling, workovers, well
deepening; recompletions and fracturing.
03/06/2001 11:30 9708676va1 MCFEEDERS REAL. . PAGE 04
2. FUTURE WELL LOCATIONS.
HSR shall have the right to drill Future Wells (including horizontal and directional wells that
produce from and drin the Property and lands other than the Property) at any locations within
the Oil and Gas Open.tion Areas, so long as such locations are permitted locations under the then
applicable well spacug regulations of the Colorado Oil and Gas Conservation Commission
("COGCC"). HSR stall not otherwise have the right to drill wells on the Property.
3. SURFACE RECLAMATION AND SURFACE DAMAGES.
HSR shall be respons•ble for all costs of reclamation for its activities on the Property.
4. ACCESS.
a. Camas an I Surface Owner shall at all times provide to HSR no less than a 30 foot
wide ease neat for arncs to the Oil and Gas Operations Areas and production
facilities. ,HSR shall maintain access roads at its sole cost during the period of time
that HSR'nnducts operations on the Property using such access. Whenever possible,
access roa:is will be located over flowlines and/or pipelines.
b. Access to Operation Areas and production facilities may be changed by mutual
agreement of the Camas and Surface Owner and HSR; provided, however, all costs
and expen ,es of the relocation shall be borne by('Auras.
c. Camas shill maintain and keep any access jointly used by Camas and/or Surface
Owner ant.HSR in good condition and repair; however, if HSR causes damage to a
road, HSF agrees to promptly repair any damage which it caused which is a direct
result of i s use of the road. Neither HSR nor ('auras nor the Surface Owner shall
unreason)ly interfere with the use by the other party of access roads.
d. Camas w.i I not allow any extraction or fill, using as a baseline the surface of the
original gnund as of the date of this Agreement, within a radius of 100 feet from the
center of:.ny well head, without first submitting in writing to HSR 60 days prior to
beginning such activity a plan acceptable to HSR for interim emergency procedures
to include satisfactory aer.esc of a workover rig and emergency vehicles. Upon
conclusion: of the extraction, Camas will fill and level the Oil and Gas Operation
Areas wit:tin no less than a 200-foot radius of the wellhead. Extraction within the
100 feet radius of a wellhead will not take longer than 4 months unless a longer
period is a peed to by Camas and HSR.
5. BATTERIES ADD EQUIPMENT(PRODUCTION FACILITIES).
a HSR shat have the right to locate, build, repair and maintain tanks, separators,
dehydrators, compressors and other equipment reasonably appropriate for the
operation ind production of any Wells only within the Oil and Gas Operation Areas
or within lie area of existing production facilities.
ewme rsn.,.7b....Ivenc...ess w3wrm uancsuRwe [f
83/06/2001 11:38 978867t_J1 MC:FEEDERS REAL PAGE 05
b. Camas an Vor Surface Owner shall install and maintain, at its sole cost and expense,
any lands(aping Camas and/or Surface Owner Sods necessary around any Operation
Areas or production facilities. Neither party shall inhibit HSR's access to said
facilities t y landscaping or other installations.
6. FLOWLINES at PIPELINES.
•
a. HSR shall have the right to lay flowlines and pipelines, which to the extent possible,
will be located under arras roads to the Oil and Gas Operation Areas and production
facilities. All pipelines shall be located at a surface depth of approximately 48 inches
from the :.final graded elevation. Flowlines, which are defined as those lines which
carry war x or hydrocarbons from the wellhead to a production unit (such as a
separator). shall be buried to a surface depth of at least 36 inches. The construction
and buryii:g of flowlines and pipelines shall be at the sole cost and expense of HSR or
its gas pc rohaser. All flowlines and pipelines shall have trace wires to facilitate
location a id all flowlines, pipelines and other below-surface facilities shall be shown
on an"as-:iuilt"plat prepared by HSR and furnished to Surface Owner and Camas.
b. Camas w:11 not allow any extraction to occur, commencing at the surface of the
original gi Jund,closer than 12.5 feet from any flowline or pipeline.
c. Camas sh.'it not allow any stockpile of soil exceeding 5 feet in depth to be placed
over any 11.owline or pipeline. Should Camas desire to exceed this limit, HSR agrees
to relocate any flowline or pipeline within 30 days of receiving notice from Camas of
the desire, location of any relocation and Camas shall pay all of HSR's costs of any
relocation
7. NOTICE OF OP EItATIONS.
HSR shall provide atleast seven days' prior written notice to Camas and Surface Owner of any
operations in connecdion with the reworking, fracturing, deepening or other operation on any
Wells;provided,however, that HSR shall provide at least 30 days' prior written notice to Camas
and Surface Owner o: the initial drilling of any Future Wells. Regardless of the foregoing notice
requirements, HSR sl all have immediate access to the Operation Areas and production facilities
in the event of an em(rgency.
The notification shall describe the following:
a. The proper:ed starting date for the proposed activity;
b. The propo zed operations to be performed at the site;and
c. The appro zimate duration of the proposed activities.
Not Less than five working days prior to HSR's mobilization on the applicable Oil and Gas
Operation Areas, either HSR, Camas or Surface Owner may request an on-site meeting. The
purpose of the mee&g shall be to inform Camas or Surface Owner of the expected activity and
to coordinate site acct ss, hazards,barricades, restoration or any other issues.
C1WtIDOWATaepay llleaarIa%C raamauazwltnats SURFACE USE AGIQ N a)dee
03/86/2881 11:30 970867L A MCFEEDERS REAL PAGE 06
r
8. NOTICE TO H(IMEOWNERS AND BUILDERS.
Surface Owner sbal furnish all buyers of the Property with a plat or map showing the
approximate location of access roads,the Oil and Gas Operation Areas, production facilities and
other related faciliti(s. In addition, the Surface Owner shall provide notice to all builders,
homeowners and otir r buyers of the Property from Surface Owner that:
a. There ma", be ongoing oil and gas operations and production in the Oil and Gas
Operation Areas and production facilities on the surface of the Property;
b. There mar: be additional Wells drilled on the Operations Areas;
c. Purchaser': of portions of the Surface Owner's property, as successors in interest to
the Surface Owner, will be acquiring all of the Surface Owner's rights under this
Agreement and assuming those obligations undertaken by the Surface Owner
pursuant r)this Agreement;and
9. DRILLING AN t COMPLETION OPERATIONS.
HSR shall endeavor to diligently pursue any actual drilling operations to rninimi?e the total time
period and to avoid lig relocations or startup during the course of drilling. Camas and Surface
Owner waive any objections to continuous(ie., 24-hour)drilling operations. HSR shall conduct
its operations in corn with the provisions of the rules and regulations of the COGCC set
forth in Rule 603.
10. SETBACK REQUIREMENTS.
f auras and Surface ('wirer will not locate inhabited buildings within 200 feet from the Oil and
Gas Operation Areas it production facilities.
11.MINING PLAN AND RECLAMATION PLAN.
Caning and Surface Owner have provided herewith copies of the proposed Pre-Miming Plan,
Mining Plan and Re;latnation Plan. HSR acknowledges receipt of said Plans and have no
objections to said Pla os as submitted. This acceptance by HSR in no way waives HSR rights in
this agreement or obl gations of Camas and Surface Owner under the terms of this agreement.
12. LIMITATION CPF LABILITY, RELEASE AND INDEMNITY.
a. NO PAR"Y SHALL BE LIABLE FOR, OR BE REQUIRED TO PAY FOR,
SPECIAL PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR
INDIREC f DAMAGES TO ANY OTHER PARTY FOR ACTIVITIES
UNDERTN WITHIN THE SCOPE OF THIS AGREEMENT;
b. Except as to claims arising out of pollution or environmental damage (which claims
are gover:ed by Section 13 below) or out of other provisions of this Agreement
cswpaowsgtp..., Fds.:eye 6 'flOJuna Rana[ee Amgen.(Sibs
03/06/2001 11:30 970867b_v1 MCFEEDERS REAL PAGE 07
(which ch ims shall be governed by the terms of this Agreement), each party shall be
and renal i responsible for all liability arising out of those losses, chips damages,
demands, suits, causes of action, fines, penalties, expenses and liabilities, including
without li:Eitation attorneys' fees and other costs associated therewith (all of the
aforesaid:Jcrein referred to collectively as"Claims"), arising out of or connected with
each such party's ownership or operations on the Property, no matter when asserted,
subject to applicable statutes of limitations. Each such party shall release, defend,
indemnify and hold the other parties, their officers, directors, employees, snrnccors
and assigrs, harmless against all such Claims. This provision does not, and shall not
be consul ad to, create any rights in persons or entities not a patty to this agreement,
nor does i create any separate tights in parties to this Agreement other than the right
to be inde:.anified for Claims as provided herein;
c. HSR shall.not permit any liens to be filed on or otherwise attach to,the Property, and
in the eve It any such liens are filed by a person pursuant to any statute or any lien
attaches by operation of law or otherwise, HSR shall take all necessary action, at its
sole cost and expense, to have such lien discharged and released as promptly as
practicably:, except that HSR shall have the right to file an operator's lien against
other owners of the oil and gas leasehold interest to recover amounts owed to HSR;
and
d. Upon the .issignment or conveyance of a party's entire interests in the Property, that
party shat. be released from its indemnification in Section 12.b above, for all actions
or occurre•ices happening after the assignment or conveyance.
13.ENVIRONMENTAL INDEMNITY.
a. The provi•;ions of Section 12 above, except for Section 12.a., shall not apply to any
environnu ntal matters,which shall be governed exclusively by the following, subject
to the limi ations of Section 13.a. above.
b. "Environmental Claims" shall mean all Claims asserted by governmental bodies or
other thin:: parties for pollution or environmental damage of any kind, arising from
operatiom on or ownership of the Property or ownership of the oil and gas leasehold
interest, v.hichever is applicable, and all cleanup and remediation costs, fines and
penalties ;associated therewith, including but not limited to any Claims arising from
Environrm ntal Laws or relating to asbestos or to naturally occurring radioactive
material. Environmental Claims shall not include the costs of any remediation
undertaken voluntarily by any party, unless such remediation is performed under
imminent !hreat of a Claim by governmental bodies or other third parties;
c. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or order
of any gcvernmental authority(ies), which relate to or otherwise impose liability,
obligation.or staruiards with respect to pollution or the protection of the environment,
including but not limited to, the Comprehensive Environmental Response,
Compensr don and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the
Resource Conservation and Recovery Act of 1976 (42 U.S.C § 6901, et seq.), the
cusumWATwpav)Ma"nua.a.csillM2O25O3WWIS SURFACE USE AGIUMe T/2)Aa
83/06/2001 11:30 9708670c...1 MCFEEDERS REAL PAGE 08
Clean Wa er Act (33 U.S.C. § 466 et se.). the Safe Dinking Water Act (41 U.S.C. §
1401-145(),the Hazardous Material Transportation Act (49 U.S.C. § 1801 et se.),the
Clean Air Act,and the Toxic Substances Control Act(15 U.S.C. § 2601-2629);and
d. "Environr rental Indemnification." HSR shall fully protect, indemnify, and hold
harmless ;auras and/or Surface Owner from any Environmental Claims relating to
the Property or oil and gas leasehold thereunder that arise out of its ownership and
operation of the Oil and Gas Operations. Camas and Surface Owner shall fully
protect, it 3emnify and hold harmless HSR from any and all Environmental Claims
relating to the Property that arise out of Developer's development of the Property.
14. EXCLUSION FROM INDEMNITIES.
The indemnities of.any party herein shall not cover or include any amounts for which the
indemnified party mr y legally recoup from other third party owners without judicial process, or
that for which the indemnified party is reimbursed by any third party. The indemnities in this
Agreement shall not relieve any party from any obligations to third parties.
15.NOTICE OF CL AIM FOR INDEMNIFICATION.
If a Claim is assert d egpinst a party for which another party would be liable under the
provisions of Sealer 12 or 13 above, it is a condition precedent to the indemnifying party's
obligations hereunder: that the indemnified party give the indemnifying party written notice of
such Claim setting brth all particulars of the Claim, as known by the indemnified party,
including a copy of 1 it Cairn (if it was a written claim). The indemnified party shall make a
good faith effort to r otify the indemnifying party within one month of receipt of a Claim and
shall effect such noti.x in all events within such time as will allow the indemnifying party to
defend against such Claim and no later than three calendar months after receipt of the Claim by
the indemnified party
16.REPRESENTAT IONS.
The parties represent to one another that each one has the full right and authority to enter into
this Agreement. HSF::does not represent that it has rights to settle matters for the mineral owners
in the Property. HSI: only has rights as a mineral lessee and this Agreement only pertains to
such rights as HSR m:ty hold.
17. SUCCESSORS.
The terms, covenants and conditions hereof shall be binding upon and shall inure to the benefit
of the parties and their respective successors and assigns; provided, as to HSR, successors and
assigns shall be deemed to be limited to lessees under the oil and gas leases which HSR owns.
18. TERM.
This Agreement shall:become effective when it is fully executed and shall remain in full force
and effect until LISP's leasehold estate expires or is terminated, and HSR has plugged and
abandoned all Wells.and complied with the requirements of all applicable oil and gas leases
caacmowiv..v..e Ia..RISC rir.JESarowowwswtr.a USE ea r Max
03/06/2001 11:30 970867b. .,1 MCFEEDERS REAL PAGE 09
pertaining to remove.,of equipment, reclamation, cleanup and all other applicable provisions of
the leases and existin; laws and regulations. When this Agreement rPAcec 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 h nger apply to the Property.
19.NOTICES.
Any notice or other communication required or permitted under this Agreement shall be
sufficient if depositec in the U.S. Mail,postage prepaid, addressed to each of the following:
If to HSR:
HS Resources,Inc.
1999 Broadway, Suite 3600
Denver, CO 80202
Attention: Land Manager
If to Camas:
Aggregate Industries
West Central Region,Inc.
3605 South Teller Street
Lakewood,CO 80235
Attention: Norm Roche
Surface Owner:
Mr. Donald L.Jones
McFeeders Realty, Appraisal &
Management, LLC
221 West Platte Avenue
Fort Morgan, CO 80701
Any party may, by written notice so delivered to the other parties, change the address or
individual to which d:livery shall thereafter be made.
20.RECORDING.
This Agreement, an) amendment hereto, and any release entered into pursuant to Section 18
above, shall be recopied by HSR, which shall provide the other parties with a copy showing the
recording informatiot as soon as practicable thereafter.
21. ARBITRATION.
Any controversy or cairn arising out of or relating to this Agreement,or the breach thereof chat!
be resolved by arbitration administered by the American Arbitration Association under its
commercial rules,am:Judgment pudgment on the award rendered by the arbitrator(s) may be entered in any
court having jurisdict on thereof
CAMNDOWIFfapov,Meet RCM:vtFll oluAU6 SURFACE USE AaIs INTcc.=
03/06/2001 11:30 978867t ..41 MC:FEEDDERS REAL PAGE 10
22. APPLICABLE I AW.
This Agreement shall be governed by and construed in accordance with the laws of the State of
Colorado.
23.ENTIRE AGRE CMENT.
This Agreement set: forth the entire understanding among the parties hereto regarding the
matters addressed he+:ein. This Agreement shall not be amended, except in written form signed
by all parties.
The parties have exec.tted this Agreement on the day and year first above written
HS RESOURCES, INC.
By:
Janet W. Pasque, Attorney-in-Fact
CAMAS
By:
Name:
Title:
SURFACE OWNERS
Elvema Burchfield Living Trust
By: Trustee
Name:
Sherry Redmond
t DOWI apav beadMAC flS i2CQ,WVN6 SURFACE USE AGPErilad«
03/06/2001 11:30 97886708u1 MCFEEDERS BEAU , PAGE 11
STATE OF COLOR.DO )
) ss-
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20C1, by , as
for HS Resources,In. _, a Delaware corporation,on behalf of that corporation.
Witness my h and and official seaL
(SEAL)
Notary Public
My commission espies:
STATE OF )
) ss•
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20C 1, by , as
for ,on behalf of
Witness my h ind and official seal
(SEAL)
Notary Public
My commission expi:es:
commwrsg..p..,s....e,sx,wa$ arowwfs suvvsummagranm.
03/06/2001 11:30 9708670bd1 MCFEEDERS REAL, . PAGE 12
•
STATE OF NEVAD.
)
COUNTY OF CLARK )
The forego':ig instrument was acknowledged before me this day of
2001, by Elverna Burchfield,as Trustee of the Elverna Burchfield Living Trust.
Witness my h tad and official seal
(SEAL)
Notary Public
My commission expi es:
STATE OF COLORDO )
) ss.
COUNTY OF )
The foregoir.g instrument was acknowledged before me this day of
,200 t,by Sherry Redmond.
Witness my hold and official seal.
(SEAL)
Notary Public
My commission expi:es:
r
G+ n.v..r tm..wsc scs Qaaiuxunarwciuseecar ,rrrga:
03/86/2001 11:30 9708670801 MCFEEDERS RFJILTY PAGE 13
•
•
D'1 ALBERS, DREXEL & POHLY, INC.
3205≤Main Street• P.O. Box 1:78 . Longmont - Colorado • 805024438 Telephone:(303) 682-1131 . Fax:(303)682-114
EXHIBIT "A"
December 2. 1999
A description of two treats of land located in the Kurtz Ranch in the E1/2 of Section 20 and in Section
21, T3N, R67W of the. 6th P.M., in Weld County, Colorado. For: McFeeders Realty, Appraisal &
Management. LLC.
PARCEL A
•
A tract of land located in the E1/2 of Section 20 and in Section 21, T3N, R67W of the 6th P.M.,
County of Weld, State c`Colorado, described as follows:
COMMENCING at the Southwest Corner of said Section 21. from which the S1/4 Corner of said
Section 21 bears S89°58'02"E, 2601.08 feet (Basis of Bearing), thence N00°53'55'9, 50.01 feet
along the West Line of the SW1/4 of said Section 21 to the Northerly Right-of-way Line of State
Highway No. 66 conve/ed to The Department of Highways, State of Colorado, as described in
Special Warranty Deed "'ecorded March 30, 1956, in Book 1440" at Page 402 of the records of Weld
County, Colorado, and t 7e TRUE POINT OF BEGINNING'
Thence N89°42'31"W, E 15.50 feet along the Northerly Right-of-way Line of said State Highway No. .
66 to the approximate C:ntertine cf the St. Vrain River;
The following courses ac d distances are along the approximate Centerline of said St. Vrain River. -
Thence N08'35'°7"E, 309.77 feet;
•
Thence N00'59't 3"W, 395.08 feet;
Thence N24'27'15"E, 227.14 feet;
Thence N06'33'CS"W, 256.91 feet;
Thence N37°29'43"W, 467.02 feet;
Thence N05°30'4 3"E, 207.44 feet;
Thence N33'11'1 3"E, 271.40 feet:
Thence N6o"56'G "E, 330.53 feet;
Thence N30'49'0 l"E.332.30 feet;
A Full Strike Land Surveying Company
•
03/06/2001 11:30 9788678801 MCFEEDERS REAL1 . PAGE 14
•
F'
'O I ALBE13S, DREXEL & POHLY, INC.
Legal Description
Thence NO3'1f'56"E, 231.70 feet;
Thence N37°0' 40"E, 354.42 feet;
Thence•N00'44 46"E, 406.68 feet;
Thence N32'0S 43"E, 254.03 feet;
•
Thence N15'33 49"E, 317.32 feet
Thence N25°22 36'W, 394.24 feet;
Thence N48'51 35'W, 190.17 feet;
Thence NO0'53'')5"W, 234.13 feet;
Thence N35'15' t3"E, 599.10 feet;
Thence N74°53' ?5"E, 334.67 feet;
Thence N30.09',x5"E, 159.34 feet to the North Line of the NW1/4 of said Section 21;
Thence leaving the app -primate Centerline of said St. Vrain Riv :r, S89°41'06"E, 1779.30 feet along
the North Line of the Nl''1/4 of said Section 21 to the N1/4 Corner of said Section 21;
Thence S89'41'45"E, :.79.09 feet along the North Line of the NE1/4 of said Section 21 to the •
.Westerly Right-of-way L ne of the Former Union Pacific Railroad conveyed to the Town of Firestone
as described in Quit Clam Deed recorded March 19, 1997, in Book 1596 as Reception No. 2538622
of the records of Weld County, Colorado, said Westerly Right-of-way Line being 100 feet Westerly of,
as measured at right an .lea to and parallel with, the Centerline of the main fine track (now removed);
Thence S10'38'19'W, :.107.02 feet along the Westerly Right-of-way Line of said Former Union
Pacific Railroad to a poir t of curve to the right;
Thence Southwesterly, 1236.79 feet along the arc of said curve and along the Westerly Right-of-way
Line of said Former Uni 3n Pacific Railroad to a point tangent, said arc having a radius of 3719.83
feet, a central angle of 1 3'03'00", and being subtended by a chord that bears S20'09'49"W, 1231.11
feet:
Thence 629'41'19'W, 8€3.14 feet along the Westerly Right-of-way Line of said Former Union Pacific
Railroad to the North Lint of the SE1/4 of the SW1/4 of said Section 21;
Thence N89'53'53'W, 51.50 feet along the North Line of the SE1/4 of the SW1/4 of said Section 21
to the Westerly Right-of-. vay Line of said Former Union Pacific Railroad. said Westerly Right-of-way
03/06/2001 11:30 9708670801 MCFEEEDRS REAL_ PAGE 15
f .gajALBE HS, DREXEL & POHLY, INC.
Legal Description
Line being 150 feet We sterly of, as measured at right angles to and parallel with, the Centerline of the
main line track (now re:loved);
Thence S29"41'19"W, -;90.58 feet along the Westerly Right-of-way Line of said Former Union Pacific
Railroad to the Northea;terty Line of that tract of land conveyed to Raymond E. Collins, Jr. and Lisa .1.
Robinson as described in Warranty Deed recorded February 5, 1999, at Reception No. 2671698 of
the records of Weld Cc :nty, Colorado;
•
Thence N60'18'411/1/, ?5:00 feet along the Northeasterly Line of that tract of land as described at
said Reception No. 267:698 to the most Northerly Corner thereof;
Thence S29'41'19"W, -023.43 feet along the Northwesterly Line of that tract of land as described at
said Reception No. 267 698 to Northerly Right-of-way Line of said State Highway No. 66;
Thence N89'47'02"W, `.31 feet along the Northerly Right-of-way Line of said State Highway No. 66
to an angle point therec;
Thence N29-41'19"E, 1• ,94 feet along the Northerly Right-of-way Line of said State Highway No. 66
to an angle point thereof•
Thence N89'47'02"W, E.15.86 feet along the Northerly Right-of-way Line of said State Highway No.
66 to the West Line of time SW1/4 of said Section 21 and the TRUE POINT OF BEGINNING.
Area =279.617 acres, rr ore or less. •
PARCEL B
- A tract of land located in the E1/2 of the SW1/4 of Section 21, T3N, R67W of the 6th P.M., County of
Weld, State of Colorado. described as follows:
COMMENCING at the C.outhwest Corner of said Section 21, from which the S1/4 Corner of said
Section 21 bears 689-51 '02"E, 2601.08 feet (Basis of Bearing), thence S89"58'02"E, 1300.54 feet
along the South Line of he SW1/4 of said Section 21 to the Southwest Corner of the SE1/4 of the
SW1/4 of said Section 21 and the TRUE POINT OF BEGINNING:
Thence N00.54'07"W, 2£3.20 feet along the West Line of the SE1/4 of the SW1/4 of said Section 21
to the Easterly Right-of-lay Line of the Former Union Pacific Railroad conveyed to the Town of
Firestone as described it Quit Claim Deed recorded March 19, 1997. in Book 1596 as Reception No.
2538622 of the records II Weld County, Colorado, said Easterly Right-of-way Line being 100 feet
Easterly of. as measurec at right angles to and parallel with, the Centerline of the main line track
(now removed);
Thence N29`41'19"E, 59'.93 feet along the Easterly Right-of-way Line of said Former Union Pacific
Railroad;
03/06/2001 11:30 970867080' M(FEEDERS REAL. PAGE 16
.1.
A0 ALBERS, DREXEL & POHLY, INC.
Legal Description
Thence S60'18'41"E, ::00.00 feet at right angles with the Easterly Right-of-way Line of said Former
Union Pacific Railroad;
Thence N29'41'19"E. : 9t00 feet parallel with the Easterly Right-of-way Line of said Former Union
Pacific Railroad;
Thence N05'39'S1"E, 1 31.22 feet;
•
Thence N45'27'46"W. 229.82 feet to the Easterly Right-of-way Line of said Former Union Pacific
Railroad;
Thence N29'41'19"E, 733.34 feet along the Easterly Right-of-way Line of said Former Union Pacific
Railroad to a point of curve to the left;
Thence Northeasterly, 35.93 feet along the arc of said curve and along the Easterly Right-of-way
Line of said Former Uni.+n Pacific Railroad to the East Line of the SW1/4 of said Section 21, said arc
having a radius of 3919.33 feet, a central angle of 10°45'26", and being subtended by a chord that
bears N24°18'36"E, 734 85 feet;
Thence S00°54'20"E, 2€49.11 feet along the East Line of the SW1/4 of said Section 21 to the S1/4
Corner of said Section 2 •
Thence N89'58'02"W, 1300.54 feet along the South Line of the SW1/4 of said Section 21 to the
Southwest Corner of t'.e SE1/4 of the SW1/4 of said Section 21 and the TRUE POINT OF
BEGINNING.
Area = 38.299 acres, mo t or less.
NOTICE: According to C'slorado law you must Frank N. Drexel
commence any legal aCJon based upon any defect Colorado Registered Professional
in this survey within t ee years after you first Land Surveyor No. 24305
discovered such defect. .n no event, may any 320'/•-Main Street, Longmont, CO 80501
action based upon any dt;fect in this survey be
commenced more than ter.years from the date of `.Z-7--5%*-
the certification.shown here:A. Date:
File:LGL-1202_DOC ADP Project 157-0
■M Banks and Gesso, LLC 720 Kipling St.,Suite117
Lakewood, Colorado 80215
(303)274-4277
Fax(303)274-8329
www.banksandgesso.com
Transmittal
To: Don French
HS Resources
1999 Broadway, Suite 3600
Denver, CO 80202
From: Alex Scha�
Date: 7 March 2001
cc: 98023 — Other Correspondence
Re: Mining and Reclamation Plans,
Kurtz Ranch Sand and Gravel Mine, Weld County, Colorado
Enclosures
1. Draft mine plan Copies Please Urgent
2. Draft reclamation plan Reply
The enclosed plans are being retransmitted to you are your request. The mining and
reclamation plans in this transmittal replace those sent to you on February 9 of this year.
If you have questions related to these maps or the permitting process for this site, please do
not hesitate to call myself or Paul Banks at 303/274.4277.
= EXHIBIT
Lae #13&17
Banks and Gesso, LLC 720 Kipling SL,Suitel r7
®■ Lakewood,Colorado 80215
(303)274-4277
Fax(303)274-8329
www.banksandgesso.com
Transmittal
To: Donald Jones
McFeeders Realty, Appraisal and Management, LLC
221 W. Platte Avenue
Ft. Morgan, Col rado 80701
From: Alex Scha
Date: 22 March 2001
cc: %:98023—Other Correspondence`
Re: Memorandum of Surface Use Agreement
Paul Banks asked me to send you a draft memorandum document for the transaction at the
Kurtz Ranch property. This memorandum, signed and notarized, would allow us to proceed
with Weld County and Colorado State permitting for the sand and gravel operations of
Camas/Aggregate Industries.
Please review the enclosed and advise the sellers that Aggregate Industries would appreciate
their signatures so that we may make submittals. If the language in the enclosed document is
acceptable, please make three copies and return them to us upon execution. Once all
signatures have been obtained, we will distribute an executed copy to each of the parties.
Please call myself or Paul Banks at 303/274.4277 if you have questions.
EXHIBIT
it U54#1347
MEMORANDUM OF SURFACE USE AGREEMENT
This MEMORANDUM OF SURFACE USE AGREEMENT (herein
"Memorandum") is made this day of , 2001 by and between
Elverna Burchfield Living Trust and Sherry Redmond D/B/A Kurtz Cattle
Company having a principal address of c/o McFeeders Realty, Appraisal and
Management, LLC, 221 West Platte Avenue, Fort Morgan, Colorado, 80701
(herein "Lessors") and CAMAS COLORADO, INC., having a principal office
located at 3605 South Teller Street, Lakewood, Colorado, 80235 (herein 'Sand
and Gravel Lessee"), HS RESOURCES, INC., having a principal office at 1999
Broadway, Suite 3600, Denver, Colorado, 80202 (herein 'Oil and Gas Lessee").
WHEREAS, Lessors, the Sand and Gravel Lessee, and Oil and Gas Lessee
desire to enter into said Surface Use Agreement and all of its terms, Lessors
agree to allow entry and use of the land described in Exhibit "A" attached hereto
and made a part hereof by Lessees.
NOW, THEREFORE, for and in consideration of the sum of One Dollar ($1.00)
and other good and valuable consideration, Lessors and Lessees, do hereby
covenant, promise and agree as follows:
1. The Surface Use Agreement provides in part that the Surface Owner will
allow the Sand and Gravel Lessee to extract construction materials from
the site in a manner which does not interfere with continued oil and gas
extraction at the Site.
2. The sole purpose of this instrument is to give notice of said Surface Use
Agreement, as required to substantiate a Right to Enter and perform sand
and gravel mining and reclamation operations at the Site.
1
The parties to this Memorandum further acknowledge that Camas Colorado, Inc.,
Aggregate Division, may be represented for permitting purposes by Aggregate
Industries West Central Region, Inc. As required, Camas Colorado, Inc. will
grant Aggregate Industries West Central Region, Inc. the Right to Enter realized
by virtue of said Surface Use Agreement.
ELVERNA BURCHFIELD LIVING TRUST
By: Trustee
Name: Elverna Burchfield
Sherry Redmond
CAMAS, COLORADO, INC.
By:
Name:
Title:
HS RESOURCES, INC.
By:
Name:
Title:
2
r.
STATE OF NEVADA )
)ss.
COUNTY OF CLARK )
The foregoing instrument was acknowledged before me this day of
, 2001, by Elvema Burchfield, as Trustee of the Elvema
Burchfield Living Trust.
Witness my hand and official seal.
(SEAL)
Notary Public
My commission expires:
STATE OF COLORADO )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2001, by Sherry Redmond.
Witness my hand and official seal.
(SEAL)
Notary Public
My commission expires:
3
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day
of , 2001, by , as
for CAMAS Colorado, Inc., a Colorado corporation, on behalf of that corporation.
Witness my hand and official seal.
(SEAL)
Notary Public
My commission expires:
STATE OF COLORADO )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day
of , 2001, by , as
for HS Resources, Inc., a Delaware corporation, on behalf of that corporation.
Witness my hand and official seal.
(SEAL)
Notary Public
My commission expires:
4
APR. 3.2001 10:39AM h...aoIPCES 9802,3 - Cw1e5pe.„--'«e 190.734 P.1,12
O717
Broadway,Sulu 3600
O DOOOT����Xfr t HS Resources,, Inc.
O303-2964601 ant
Fax transmittal
tie Donald Jones do McFeeders Realty,Appraisal&Management LLC
Floc 970867-0801
From: Donald French
Date: Apn13,20O1
Re: Surface Use Agreement
Pages 12,including this cover sheet
•Comments:
Don, am faxing our most recent revisions to the Surface Use Agreement. Our changes to your
revisions are double undefined for your quids reference. As to Exhibits, do you agree with the
!clawing?
Exhibit'A' Legal Desaipton of the Mine
ExitA's' Pre-Mining Plan •
Exhibit IC Mining Plan
Exhibit' Reclamation Plan
1Me need to be sure all existing production facilities are shown on the Exhibits
I believe you and I agreed as to paragraph 9 and the setbacks,whkh would be necessary for us to dnll
a new well or replacementwell In the operational areas. Lets discuss if you have any concers.
As to paragraph 10,the addition Is just a repeat of item 9.
As to paragraph 19,it was added at your representative's request and or agreement
Don, at this time my biggest concern Is that none of the maps reflect the 200'radius around =fisting
wells which becomes the'Operational Area'. We want to be sure we have this room after mining so we
can reinc and/or drill a new Welke)or replace she should it be necessary.
Please review the draft of this Agreement and contact our office. Thank yowl
r
1 EXHIBIT
USr2 #13y7
APR. 3.2001 10240AM H:..-SOtRCES 110.734 P.2,12
3/30/20017:06 AM
SURFACE USE AGREEMENT
(Existing Wells and Future Wells)
This Surface Use Agreement("Agreement")is made this day of .2001,and
is between HS Resources,Inc.("FHSR"),with an address of 1999 Broadway, Suite 3600,Denver,
Colorado 80202, Camas Colorado, Inc., Aggregate Division ("Cw its"), with an address of
3605 South Teller Street, Lakewood, Colorado 80235,and Elvema Burchfield Living Trust, and
Sherry Redmond, D/B/A Kurtz Cattle Company ("Surface Owner") with an address of do
McFeeders Realty,Appraisal&Management,LLC,221 West Platte Avenue,Fort Morgan,Colorado
80701.
A. Surface Owner is the owner of the surface and Camas will mine a parcel located in
Section 20 and W/2 Section 21, Township 3 North, Range 67 West, Weld County, Colorado
("Property"),more particularly described in Exhibit A attached hereto and incorporated herein by
• this reference.
B. Surface Owner's ownership of the Property and flames' mining operations on this
Property are subject to the rights of the oil and gas mineral estate which has been leased to HSR;
C. f'ernas will apply for and obtain a mining permit for an open cut gravel mine and
batch plant known as the"Kurtz Ranch Sand and Grave Mine"("Mine');
D. HSR has the right to deepen, recomplete or rework the existing wells ("Existing
Wells")on the Property.
E. HSR has the right to develop its oil and gas leasehold estate by drilling additional
wells(hereinafter referred to as"Future Wells")on the Property and/or deepening,recompleting,or
reworking these Future Wells; and
F. This Agreement sets forth the parties'rights and obligations regarding the relationship
between the development of the Property by Camas and Surface Owner and HSR's operation and
development of its oil and gas leasehold estate.
In consideration of the mutual covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,the parties agree as
follows:
1. AREAS RESERVED.
Ca .as and Surface Owner shall provide HSR no less than a 200 foot radius around Existing
Wells(the"Oil and Gas Operation Areas")as described A nn Rxhtbit B attachedhhereto for
the Existing Wells and for the Future Wells, jointly the ("Wells"), for any operations
wx>sos.1
w a3a210t trier+
APR. 3.2001 1e:40RM ..._RESOIRCES '140.734 P.3/12
3/30/200'7'06 AM
conducted by HSR in connection with any Wells, including, but not limited to, lease
operating activities,new drilling,workovers,well deepenings,recompletions and fracturing.
2. FUTURE WELL LOCATIONS.
HSR shall have the right to drill Future Wells(including horizontal and directional wells that
produce from and drain the Property and lands other than the Property) at any locations
within the Oil and Gas Operation Areas, so long as such locations are permitted locations
under the then applicable well spacing regulations ofthe Colorado Oil and Gas Conservation
Commission ("COGCC"). HSR shall not otherwise have the right to drill wells on the
Property.
3^. ACCESS.
a) Camas and Surface Owner shall at all times provide to HSR no less than a 30 foot
wide easement for access to the Oil and Gas Operations Areas and production
facilities. HSR shall maintain access roads at its sole cost during the period of time
that HSR conducts operations on the Property using such access. Whenever possible,
access roads will be located over flowlines and/or pipelines.
b) Access to Operation Areas and production facilities may be changed by mutual
agreement of^Camas:Surface Owner and HSR;provided,however,all costs and
expenses of the relocation shall be borne by Camas,
c) Camas shall maintain and keep any access jointly used by rlamaq and/or Surface
Owner and ESA in good condition and repair;however,if HSR causes damage to a
mad,HSR agrees to promptly repair any damage which it caused which is a direct
result of its use of the road. Neither HSR,nor Camas nor the Surface Owner shall
unreasonably interfere with the use by the other party of access roads.
d) Camas will not allow any extraction or fill, using as a baseline the surface of the
original ground as of the date of this Agreement,within a radius of 100 feet from the
center of any wellhead, without first submitting in writing to HSR 60 days prior to
beginning such activity a plan acceptable to HSR for interim emergency procedures
to include satisfactory access of a workover rig and emergency vehicles. Upon
conclusion of the extraction, Camas will fill and level the Oil and Gas Operation
Areas within no less than a 200-foot radius of the wellhead. Extraction within the
100-foot radius of a wellhead will not take longer than 4 months unless a longer
period is agreed to by Camas and HSR
^�. BATTERIES AND EQUIPMENT(PRODUCTION FACILITIES).
a) HSR shall have the right to locate, build, repair and maintain tanks, separators,
dehydrators, compressors and other equipment reasonably appropriate for the
$3mfiO3v1
Moth 304001 07AM:4
APR. 3.2001 10:41AM r.._.EbtRCES N0.734 P.4/12
3/30/20017:06 AM
operation and production of any Wells only within the Oil and Gas Operation Areas
or within the area of existing production facilities,which facilities are shown on
Fsbibit B attachedh ereto.
b) Camas and/or Surface Owner shall install and maintain,at its sole cost and expense,
any landscaping Uprose and/or Surface Owner finds necessary around any Operation
Areas or production facilities. Neither party shall inhibit HSR's access to said
facilities by landscaping or other installations.
5. PLOWLINES AND PIPELINES.
a) HSR chall have the right to lay flowlines and pipelines,which to the extent possible
will be located under access roads to the Oil and Gas Operation Areas and production
facilities. All pipelines shall be located at a surface depth of approxirm'tely 48 inches
from the final graded elevation. Flowlines,which are defined as those lines which
• carry water or hydrocarbons from the wellhead to a production unit (such as a '
separator),shall be buried to a surface depth of at least 36 inches. The construction
and burying of flowlines and pipelines shall be at the sole cast and expense of HSR
or its gas purchaser. A
b) C'rmac will not allow any exit-action to occur, commencing at the surface of the
original ground,closer than 115 feet from any flowline or pipeline.
' N c) (amps shall not allow any stockpile of soil exceeding 5 feet in depth to be placed
over any flowline or pipeline",or otherwise stockpile any eniount of soil overcurrent
contours or ermundle_vels which total depth exceeds the 5 font limit nnovided herein.
,Should COMA 1,desire to exceed this limit,then it nmayrtrinr•ct TnlnePtinn pc pmvidrd
jp this Section below
41 Should Camas desir�e/�arelocation of tlowlhes or nin kin c HSR agrees to relocate^
such lines within^yf days of receiving notice from Camas^of the desired location
of any relocation and Camas shall pay all gi HSR's costs^ any relocation.
^Ji• NOTICE OF OPERATIONS.
HSR shall provide at least seven days'prior written notice to Camas and Surface Owner of
any operations in connection with the reworking,fracturing,deepening or other operation on
any Wells;provided,however,that HSR shall provide at least 30 days'prior written notice to
scrips and Surface Owner of the initial drilling of any Future Wells. Regardless of the
foregoing notice requirements,HSR shall have immediate access to the Operation Areas and
production facilities in the event of an emergency.
The Notification shall describe the following:
a) The proposed starting date of the proposed activity;
APR. 3.2001 10:41AM h _SOURCES N0.734 F.5,12
3/30120017:06 AM
b) The proposed operations to be performed at the site;and
c) The approximate duration of the proposed activities,
Not less than five working days prior to HSR's mobilization on the applicable Oil and Gas
Operation Areas,either HSR,Camas or Surface Owner may request an on-site meeting. The
purpose of the meeting shall be to inform Camas or Surface Owner of the expected activity
and to coordinate site access,hazards,barricades,restoration or any other issues.
A 2. NOTICE TO HOMEOWNERS AND BUILDERS.
Surface Owner shall furnish all buyers of the Property with a plat or map showing the access
roads,the Oil and Gas Operation Areas,production facilities and other related facilities. In
addition, the Surface Owner shall provide notice to all builders, homeowners and other
buyers of the Property from Surface Owner that:
a) There may be ongoing oil and gas bperations and production in the Oil and Gas
Operation Areas and production facilities on the surface of the Property;
b) There may be additional Wells drilled on the Operations Areas; and
c) Purchasers of portions of the Surface Owners property,as successors in interest to the
Surface Owner, will be acquiring all of the Surface Owners' rights under this
Agreement and Assuming those obligations undertaken by the Surface Owner
pursuant to this Agreement, incl+din . but no limited t . the_waiyer nmtiisions
provided in Section 9 below.
^a. DRILLING AND COMPLETION OPERATIONS.
HSR shall endeavor to diligently pursue any actual drilling operations to min1miw.the total
time period and to avoid rig relocations or startup during the course of drilling. Camas and
Surface Owner waive any objections to continuous(i.e.,24-hour)drilling operations. USE
shall conduct its operations in compliance with the provisions of the rules and regulations of
the COCrCC set forth in Rule 603. subiect to she setback waivers nrtvided in Section 9
below.
A 2. SETBACK REQUIREMENTS.
Camas and Surface Owner will not locate inhabited buildings within 200 feet front the Oil
and Gas A Cbajahlta Areas or production facilities. Since Future W lls may to d t
any location within annv Oil and Gas Operation nun S re Owner a d Ca a
150-foot sathack reo+item rovided in Rule 3_a- (2' of_the COGCC L
and
reet�lationsinenfar a b ea eat loom tmavcr aten
� �. eu�si+rfar,�nroA�' •Goes within
150 feet of antGi] nd ,asOneratkmaArca n ha venthnl+lohdensityarf'atL+le9 m
seek;cable to anv ti+*+*r Well¢ Ctxfare Owner a++d C_+++ac Liao waive re ; 1, denc;ry
setback ru au•cements in Rule 603 b of the COGC` r l rid rl
atiOAcClre waivers
provided herair shall be binding noon the sucPessors and assigns of m nd S era e
APR. 3.2001 10.42AM , ..£5dI.R S P93.734 P.6.12
7:06 AM
Oiler and shall benrfit H R its successors and assl2n5 under the a 3x�stina oiltanclgas
le seho� ld t
SD. D VFr.APMP]WrP ANa A
Camps and Surface Owner have provided herewith copies of the proposed Pre-Mining Plan,
Mining Plan and Reclamation Plan. HSR acknowledges receipt of said Plans and have no
objections to said Plans as submitted. This acceptance by HSR in no way waives HSR's
rights in this agreement or obligations of Camas and Surface Owner under the terms of this
agreement Camas and Surface Owner aclosowledne hat H R may conduct oil and eas
a&tihitiis within the on and Gas Onera-ions Ares_a nrovidcd hrrrin and nritlrr shall nnnncr
•
•
A. LIMITATION OF LIA.BII..ITY,RELEASE AND INDEMNITY.
a) NO PARTY SHALL BE LIABLE FOR, OR BE REQUIRED TO PAY FOR,
SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR
INDIRECT DAMAGES TO ANY OTHER PARTY FOR. ACTIVITIES
UNDERTAKEN WITHIN THE SCOPE OF THIS AGREEMENT;
b) Except as to claims arising out of pollution or environmental damage(which claims
are governed by Section A,u,below) or out of other provisions of this Agreement
(which claims shall be governed by the terms of this Agreement),each party shall be
and remain responsible for all liability arising out of those losses,claims,damages,
demands,suits,causes of action,fines,penalties,expenses and liabilities,including
without limitation attorneys' fees and other costs associated therewith (all of the
aforesaid herein referred to collectively as'flaims' arising out af or connected with
each such party's ownership or operations on the Property,no matter when asserted,
subject to applicable statutes of limitations. Each such party shall release,defend,
indemnify and hold the other parties,their officers,directors,employees,successors
and assigns,harmless against all such Claims. This provision does not,and shall not
be construed to,create any rights in persons or entitles not a party to this Agreement,
nor does It create any separate rights in parties to this Agreement other than the right
to be indemnified for Claims as provided herein;
c) HSR shall not permit any liens to be filed on or otherwise attach to,the Property,and
in the event any such liens are filed by a person pursuant to any statute or any lien
attaches by operation of law or otherwise,HSR shall take all necessary action,at its
sole cost and expense, to have such lien discharged and released as promptly as
practicable, except that HSR cba11 have the right to file an operator's lien against
other owners of the oil and gas leasehold interest to recover amounts owed to HSR;
and
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APR. 3.2001 10:42AM Ft..ESOIRCES 14.734 P.7/12
3130/20017;06 AM
d) Upon the assignment or conveyance of a party's entire interests in the Property,that
party shall be released from its indemnification in Section^ lija. above, for all
actions or occurrences happening after the assignment or conveyance.
ENV IRO I• AL INDEMNITY.
a) The provisions of Section^11,above,except for Section^ILA.,shall not apply to
any environmental matters, which shall be governed exclusively by the following,
subject to the limitations of Section"jl,a. above;
b) "Environmental Claims"shall mean all Claims asserted by governmental bodies or
other third parties for pollution or environmental damage of any kind,arising from
operations on or ownership of the Property or ownership of the oil and gas leasehold
interest, whichever is applicable, and all cleanup and remediation costs, fines and
penalties associated therewith,including but not limited to any Claims arising from
Environmental Laws or relating to asbestos or to naturally occurring radioactive
material. Environmental Claims shall not include the costs of any remediation
undertaken voluntarily by any party,unless such remediation is performed under the
imminent threat of a Claim by governmental bodies or other third parties;
c) "Environmental Laws"shall mean any laws,regulations,rules,ordinances,or order
of any governmental autbority(ies), which relate to or otherwise impose liability,
obligation, or standards with respect to pollution or the protection of the
environment, including but not limited to, the Comprehensive Environmental
Response,Compensation and Liability Act of 1980,as amended(42 U.S.C.§ 9601 et
,MgJ,the Resource Conservation and Recovery Act of 1976(42 U.S.C. §§6901 et
zg;),the Clean Water Act(33 U.S.C. §§466 et se ,the Safe Drinking Water Act
(14 U.S.C. §§ 1401-1450),the Hazardous Material Transportation Act(49 U.S.C.
§§ 1801 eI ,the Clean Air Act,and the Toxic Substances Control Act(15 US.C.
§§2601-2629); and
d) "Environmental Indemnification." HSR shall fully protect, indemnify, and hold
harmless Developer and any lot owner who purchases a lot from Developer from any
Environmental Claims relating to the Property or oil and gas leasehold thereunder
that arise out of its ownership and operation of the Oil and Gas Operations Areas.
ram and Surface Owner shall fully protect, indemnify and hold harmless HSR
from any and all Environmental Claims relating to the Property that arise out oftheir
development of the Property.
^a,}. EXCLUSION FROM INDEMNITIES.
The indemnities of any party herein shall not cover or include any amounts for which the
indemnified party may legally recoup from other third party owners wi)houtjudicialprocess,
or that for which the indemnified parry is reimbursed by any third party. The indemnities in
this Agreement shall not relieve any party from any obligations to third parties.
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APR. 3.2001 10:43RM htr.._SOURe..ES 110.734 P.8/12
3130/20017:06 AM
^14. NOTICE OF CLAIM FOR INDEMNIFICATION.
If a Claim is asserted against a party for which another party would be liable under the
provisions of Section A jj, or^12,above, it is a condition precedent to the indemnifying
party's obligations hereunder that the indemnified party give the indemnifying party written
notice of such Claim setting forth all particulars of the Claim,as known by the indemnified
party,including a copy of the Claim(if it was a written Claim). The indemnified party shall
make a good faith effort to notify the indemnifying party within one month of receipt of a
Claim and shall effect such notice in all events within such time as will allow the
indemnifying party to defend against such Claim and no later than three calendar months
after receipt of the Claim by the indemnified party.
A ja. REPRESENTATIONS.
The parties represent to one another that each one has the full right and authority to enter into
• this Agreement. HSR does not represent that it has rights to settle matters for the mineral •
owners in the Property. HSR only has rights as a mineral lessee and this Agreement only
pertains to such rights as HSR may hold.
A 11. SUCCESSORS.
The terms, covenants and conditions hereof shall be binding upon and shall inure to the
benefit of the parties and their respective snrrtcsors and assigns; provided, as to HSR,
successors and assigns shall be drPmed to be limited to lessees under the oil and gas leases
which HSR owns.
AZ. TERM.
This Agreement shall become effective when it is fully executed and shall remain in full
force and effect until HSR's leasehold estate expires or is terminated,and HSR has plugged
and abandoned all Wells and complied with the requirements of all applicable oil and gas
leases pertaining to removal of equipment,reclamation, cleanup and all other applicable
provisions of the leases and existing laws and regulations. When this Agreement ceases to
be in full force and effect,the parties shall execute any and all releases necessary to evidence
the fact that this Agteetttent shall no longer apply to the Property.
^n. NOTICES.
Any notice or other communication required or permitted under this Agreement shall be
sufficient if deposited in U.S. Mail,postage prepaid, addressed to each of the following:
If to HSR:
HS Resources,Inc.
1999 Broadway, Suite 3600
Denver,CO 80202
Attention: Land Manager
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•
APR. 3.2001 10:43AM al:LACES ND.? 4 P.9i12
3/30/20017:06 AM
to Camas:
Aggregate Industries
West Central Region,Inc.
3605 South Teller Street
Lakewood,CO 80235
Attention: Norm Roche
Surface Owner.
Mr.Donald I.Jones
McPeeders Realty,Appraisal&Management,LLC
221 West Platte Avenue
Port Morgan,CO 80701
Any party may, by written notice so delivered to the other parties, change the address or
individual to which delivery shall thereafter be made.
A j. RECORDING.
^AMemorandutn nail Agreement^pt any amendment hereto,and any release entered into
pursuant to Section^12 above, shall be recorded by HSR, which shall provide the other
parties with a copy showing the recording information as soon as practicable thereafter,
Aa ARBITRATION.
Any controversy or claim arising out of or relating to this APlerment,or the breach thereof,
shall be resolved by arbitration administered by the American Arbitration Association under
its commercial rules,and judgment on the award rendered by the arbitrator(s)may be entered
in any court having jurisdiction thereof.
^a. APPLICABLE LAW.
This Agreement shall be governed by and construed is accordance with the laws of the State
of Colorado.
^21. ENTIRE AGREEMENT.
This Agreement sets forth the entire understanding among the parties hereto regarding the
matters addassed herein,and supersedes any previous communications,representations or
agreement,whether oral or written. This Agreement shall not be amended,except in written
form signed by all patties.
APR. 3.2001 10:44AM k £S0lRCE5 N0.734 P.1O/12
3!30/20017:06 AM
The parties have executed this Agreement on the day and year first above written.
HS RESOURCES,INC.
By:
Janet W.Pasque,Attorney-in-Fact
CAMAS
By.
Name:
Title:
•
SURFACE OWNERS
By:
Name:
Title:
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-. -,
PPR. 3.2U31 10:44AM1 FL`.,.._SOLRCES •NO.734 ' P.11,12
3/30/20011:06 AM
STATE OF COLORADO )
CITY AND )ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this day of
2001,by Janet W. Pasque as Attorney-in-Fact for HS Resources,Inc.,a Delaware corporation,on
behalf of that corporation.
Witness my band and official seal.
(SEAL)
Notary Public
My Commission Expires:
•
STATE OF )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2001, by as for , on
behalf of
Witness my hand and official seal.
(SEAL)
Notary Public
My Commission Expires:
APR. 3.2001 10:441t1 I'''SOURCES N0.734 P.12/12
3/30/2001706 AM
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#43634874
March 29,2001 ^04:10=
-FOOTER 2-
Footer Discontinued
•
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LA v r cf 1D` z
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REALTY APPRAISAL & MANAGEMENT LLC
"Serving customers from the plains to the rockies"
April 11, 2001
Wally Grant
The Cob. Natl. Bank Bldg.
436 Coffinan St. Suite 200
Longmont, CO 80502-0908
RE: HS RESOURCE PROPOSED SURFACE USE AGREEMENT
Dear Wally:
I have reviewed Mr. French's draft of the Proposed Surface Use Agreement and
have incorporated the modifications requested by Aggregate Industries along with
Exhibit A(Legal Description), (Exhibit B Pre Mining Map), Exhibit C2 (Mine
Map), Exhibit F (Reclamation Map). All exhibits have been incorporated into the
agreement per Mr. French's request.
I have enclosed 3 copies of each one of the exhibits. In addition I have
incorporated the memorandum of Surface Use Agreement to be recorded in Weld
County once these agreements are executed by all parties.
Please review the draft incorporating the modifications requested by Aggregate
Industries. They are primarily changing their name from Camas to Aggregate.
I am hopeful the changes and modifications made by both HS Resources and
Aggregate Industries will be acceptable. I suggest we draft three original copies of
the agreement with attached exhibits, forward them to Sherry& Elverna for their
execution, return them to Aggregate for their execution, and deliver them to HS
Resources for their execution.
I am hopeful this will expedite the process of the Mine Permitting process. If you
have questions after you have reviewed the information please contact me. I am
hopeful we can get this agreement executed, and to proceed the mining
application process.
4 EXHIBIT
usk #13'17
221 W.Platte Avenue • Fort Morgan,Colorado 80701•(970)867-7816•FAX(970)867-0801•email:mcteeders@twoLeom
r-
I still have in my possession the HS Gathering Agreements for the pipeline
easement and will proceed according to your instructions on those agreements.
If I can be of assistance in expediting this process please do not hesitate to contact
me.
Thank you,
Sincerely,&in e /96 7- A e' r f
Donald L. Jones
•
D1j/oc
Cc: Don French/HS Resources
Norm Roach/Aggregate Industries
Paul Banks/Banks &Gesso
Elverna Burchfield
Sherry Redmond
Si Haliburton
„ r mot a liSit‘ I..
! 1 1 i ; ; I ! I : U
"Serving customers from the plains to the rockies"
April 27, 2001 9u)0 3
Scott R. Knutson
Consulting Landman frktAcGC
HS Gathering L.L.C.
1999 Broadway Suite 3600
Denver, CO 80202 •
RE: PIPELINE RIGHT OF WAY EASEMENT SECTION 21.N1/2 NW T3N
R67W OF 61° P.M. WELD COUNTY, COLORADO
Dear Mr. Knutson:
Mrs.Burchfield and Mrs. Redmond's agreements have now been reviewed by their
attorney. He has suggested making the changes reflected on the copy I have
forwarded to you. I am hopeful you can draft a new Right of Way agreement for
both the Elvema Burchfield Trust and for Sherry Redmond execution and forward
them to me. Once I receive the corrected copies from you I will forward them to
Mrs.Burchfield and Mrs.Redmond for their execution.
Our delivery and acceptance of the agreements on this Right of Way Grant still
remains predicated on HS Resources approval of our Surface Use Agreement.
The Surface Use Agreement is being drafted in first form and will be sent to Mrs.
Burchfield, and Mrs. Redmond directly by Wally Grant their attorney.
I am hopeful we can execute all documents so we can proceed with our plans and
you can proceed with yours. If you have any questions of if you would like to
discuss the matter further please do not hesitate to contact me.
Thank you,
Sincerely
Donald L. Jones
Dlj/oc
Cc: Don French
Norm Roach = EXHIBIT
Paul Banks o
1(5Q t13y7
221 W.Platte Avenue • Fort Morgan,Colorado 80701•(970)867-7816•FAX(970)867-0801•email:mcfeeders@twol.com
SEP-25-01 TUE07: 19AM WELD 9.4"'VTY PUBLIC WKS7 FAX:9703046497, PAGE 1
(,\ MEMORANDUM
TO: Robert Anderson,Planner I DATE: July 6,2001
4§ t
FROM Drew Scheltinga,Engineering Supervisor
O SUBJECT: USR-1347,Kurtz Ranch Sand&Gravel
COLORADO
The Weld County Public Works Department has reviewed the Traffic Study for this Special Use Permit. Comments
made during this phase of the USR process may not be all-inclusive,as other concerns or issues may arise during
the remaining application processes.
COMMENTS:.:
This study estimate 50 hips per hour: Although this seems high,the Weld County Department of Public Works has
accepted this number. However,we do not agree that only 10 vehicles leave this site in the A.M.peak hour. It is more
reasonable to assume 80-90%of the trips leave in the A.M.peak hour and return in the P-M.peak hour.
Since this operation will access directly to SH 66,an access permit from CDOT will be required. The engineer and
developer should be aware that the left turn bay will require a 65:1 redirect taper. Please investigate the possibility of
installing a left turn bay crossing the railroad and the bridge.
This traffic study is required to bear the stamp of a professional engineer,licensed in the State of Colorado.
Please resubmit the traffic study addressing the above concerns.
RC. USR-1347,Donald Carroll \\
Krager and Associates
Banks.&Gesso
t' 6r�
`
e ,
•
. .. l- Q .
M:\VR+FILPS‘dianc\DAvgIAPMfiNTWar-1941 wpd � � � �\' (J
1 EXHIBIT
, ti 2
uSe4, r
Varra Companies, Inc.
Office of Special Projects
1431 East 16th Street + Greeley,Colorado 80631 + Telephone(970)353-8310 + FAX 970)353-4047
Friday 24 August 2001
Weld County Department of Planning Services
1555 North 17th Avenue
Greeley,Colorado 80631
Subject: USR 1347—Kurtz Ranch Sand and Gravel—Aggregate Industries.
USR 1343—Owens Bros.Concrete Company.
Dear Planner:
Attached is correspondence from my office to Banks and Gesso relevant to the above reference Weld County USR
applications. As you are aware, Varra Companies, Inc. has operations and established access at Highway 66,
adjacent to these proposed sand and gravel operations. Varra Companies, Inc. is interested in traffic analysis and
negotiation respective of these operations.
Specifically; while all requirements and expenses have already been met by Varra Companies, Inc., in this regard; it
appears reasonable for us to express concern that our existing operations be fully considered in combination
respective of the two proposed operations. As our existing operations develop to include full production from our
approved aggregate, asphalt and concrete plants, including approved 24 hour operations, the combined operations
proposed by our two neighbors must not be allowed to adversely bear upon our previously approved circumstances
at worst. At best,the resulting cumulative impact to Highway 66 should be adequately evaluated to take into
consideration not only ingress and egress considerations pertaining to the proposed operations,respective of our
existing approved operation; but seriously entertain any additional safety measures warranted to the benefit of the
traveling public respective of signage, signaling, speed limits, shoulders, bridges, roadway expansion, and related
features.
In short, we believe it would be misguided to consider these proposed operations singularly from each other; or
otherwise apart from their singular or combined influence on our existing approved operations, or the traveling
public. Therefore, please consider the cumulative potential of these proposals respective of our existing approved
operations. We desire an opportunity for representatives of Varra Companies, Inc. to be kept informed and our
interests regarded respective of any traffic impact studies performed on behalf of these proposals; including
adequate opportunity to comment on the nature, character and composition of those studies, conclusions, and any
proposed accommodations. If you need clarification or additional information,please feel free to contact us.
Thank-you for your kind consideration.
Sincerely lleirct
OO4O2,
Varra Companies, Inc. `1'p,
Bradfo Janes ed <tt ept,
Prof onal Forester Cep
cc. Ross M. Horvath, P.E. Weld County Commissioners ��®
Banks and Gesso Weld County Public Works
Colorado Dept. of Transportation
Christopher L. Varra, President
Varra Companies, Inc.
BLJ/blj. 1 EXHIBIT
u3E*1317
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