HomeMy WebLinkAbout20052649.tiff r., -�
SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL.
REVIEW (USR) APPLICATION
FOR PLANNING DEPARTMENT USE DATE RECEIVED:
RECEIPT #/AMOUNT # _/$ CASE ft ASSIGNED tilt.)., /51y
APPLICATION RECEIVED BY _ PLANNER ASSIGNED:
Parcel Number 0 8 0 7 _ 3 5 _ 1 _ 0 0 _ 0 2 9
(12 digit number-found on Tax I.D.information,obtainable at the Weld County Assessor's Office,or www.co.weld.co.us).
Legal Description Part of the N/2 of the NE/4 _, Section 36, Township 6 North, Range 67 West
Flood Plain: Zone District: I1, Z-459 , Total Acreage: 77.02 ,Overlay District
Geological Hazard: _ ,Airport Overlay District
FEE OW NER(S)OF THE PROPERTY:
Name: EASTMAN KODAK COMPANY
Work Phone# (970)686-4741 Home Phone# Email Address
Address: 9952 Eastman Park Drive
City/State/Zip Code Wndsor,0080551
Name:
Work Phone # Home Phone# Email Address
Address:
City/State/Zip Code
Name:
Work Phone# Home Phone# Email Address
Address:
City/State/Zip Code
APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications sgned by Authorized Agent)
Name: Petro-Canada Resources (USA) Inc
Work Phone # 303-297-2300 Home Phone# Email Address Susan.Miner@Petro-Canada.com
Address: 109918th Street,Suite 400
City/State/Zip Code Denver,Colorado 80202
PROPOSED USE:
Drilling,Completion and operation of(2)oil&gas wells.
I(We)hereby depose and state under penalties of perjury that all statements, proposals,a nd/or plans submitted with
or contained within the application are true and correct to the best of my(our)knowledge. Signatures of all fee owners
of property must sign this application. If an Authorized Agent signs, a letter of authorization fro m all fee owners must
be included with the application.If a corporation is the fee owner, notarized evidence must be included indicating that
the signatory has to legal authority to sign for the corporation.
Petro-Canada Resources(USA)Inc
S' n ture:Owner or Authorized Agent Date Signature: Owner or Authorized Agent Date
san M. Miller, Operations Tech
2005-2649
APPLICATION FOR USE BY SPECIAL REVIEW
TOWNSHIP 6 NORTH, RANGE 67WEST
SECTION 35
PARCEL #080735100029
County of Weld
State of Colorado
APPLICANT:
PETRO-CANADA RESOURCES (USA) INC
1099 181.14 STREET, SUITE 400
DENVER, CO 80202
SUBMITTAL DATE:
April 25 2005
EXHIBIT
SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL
REVIEW (USR) QUESTIONNAIRE
The following questions are to be answered and submitted as part of the USR
application. If a question does not pertain to your use, please respond with "not
applicable", with an explanation as to why the question is not applicable.
1. Explain in detail, the proposed use of the property.
Oil and natural gas wells will be drilled on this property. The oil, water and
natural gas produced from the wells will be separated on the property.
The oil and water will be temporarily stored in tanks on the property until
the oil and water can be removed from the property by trucks. The natural
gas will be metered and transferred on the property utilizing small
pipelines.
2. Explain how this proposal is consistent with the intent of the Weld County
Code, Chapter 22 (Comprehensive Plan).
Petro-Canada Resources (USA) Inc (Petro-Canada) will continue to
discuss well locations with both surface and mineral owners, including
Eastman Kodak's tenant farmers and developers who are in the planning
stages for a subdivision. The well locations have been agreed to. Petro-
Canada will follow all state and county regulations and conduct operations
as a prudent operator.
3. Explain how this proposal is consistent with the intent of the Weld County
Code, Chapter 23 (Zoning) and the zone district in which it is located.
This area is zoned Industrial. Petro-Canada is applying for a USR to drill
2 wells in the NE/4-Section 35-Township 6 North—Range 67 West.
4. What type of uses surrounds the site? Explain how the proposed use is
consistent and compatible with surrounding land uses.
The primary use surrounding the site is agricultural. Petro-Canada will
attempt to drill and construct before and/or after the farming season.
Nearly all of the disturbed land will be reclaimed to allow the farming to
continue. The tank and metering facilities will be located outside of the
farm fields
Page 2
Petro-Canada Resources (USA) Inc
USE BY SPECIAL REVIEW(USR) QUESTIONNAIRE
5. Describe, in detail, the following:
a. How many people will use this site? 1 — 15. More people will use the
site during the drilling and construction, which will only be for a short
period. After this period one person will check the facility each day.
b. How many employees are proposed to be employed at this site? None
c. What are the hours of operation? Twenty-four
d. What type and how many structures will be erected (built) on this site?
There will be two wellheads, which are basically one valve on each
well. The separation, storage and meter facility will include one
separator, two oil tanks, one water tank (buried) and one meter facility.
e. What type and how many animals, if any, will be on this site? Not
applicable. Oil and gas wells.
f. What kind (type, size, weight (of vehicles will access this site and how
often? During the initial drilling phase trucks will move the drilling rig in
12 loads and the total weight of the rig is 125,000 lbs. During the two-
week period after the drilling is complete there will be ongoing heavy-
duty vehicle traffic with trucks weighing up to 40,000 lbs. During the
producing phase there will be one quarter-ton pickup on the property
every day.
g. Who will provide fire protection to this site? Fire District.
h. What is the water source on the property? (Both domestic and
irrigation). Not applicable.
i. What is the sewage disposal system on the property? (Existing and
proposed). Not applicable. Not necessary, oil and gas wells only.
j. If storage or warehousing is proposed, what type of items will be
stored? There will be 42 bbls. of water storage capacity and 600 bbls.
of oil storage capacity.
6. Explain the proposed landscaping for the site. The landscaping shall be
separately submitted as a landscape plan map as part of the application
submittal.
Not applicable. Oil and Gas wells only.
Page 3
Petro-Canada Resources (USA) Inc
USE BY SPECIAL REVIEW(USR) QUESTIONNAIRE
7. Explain any proposed reclamation procedures when termination of the
Use by Special Review activity occurs.
Each well will require approximately 2 acres of disturbance. Once drilling
and construction is complete all the disturbance with the exception of
approximately 1000 square feet around each well will be reclaimed.
8. Explain how the storm water drainage will be handled on the site.
Not applicable. Wells are not located in a storm water drainage area.
9. Explain how long it will take to construct this site and when construction
and landscaping is scheduled to begin.
Assuming both wells are drilled sequentially, the drilling and construction
will take about six weeks. The schedule is uncertain depending on USR
approval and farming activities.
10. Explain where storage and/or stockpile of wastes will occur on this site.
The only waste is drilling cuttings. These cuttings are often used by the
farmers to improve soil productivity. If the farmers do not want the
cuttings, the waste will be disposed of offsite.
EMERGENCY INFORMATION LIST
Dave Gipson Petro-Canada
(970) 284-6006
Josh Thomason Petro-Canada
(303) 297-2300
Business Hours 8:00 A.M. — 5:00 P.M.
24 Hour Answering Service 1-800-766-7762
Bob Kuehn or Dave Gipson
•
PEN 4IAN Petro-Canada Resources(USA) Inc.
•
April 29 2005
Via Facsimile
Weld County Department of Planning
1555 N. 17th Avenue
Greeley, CO 80631
Attention: Ms. Sheri Lockman
Re: Application for Use by Special Review (USR) -Authority to Sign
Township 6 North — Range 67 West
Section 35: NE/4
Weld County, CO
Dear Ms. Lockman:
r^
Susan M. Miller is authorized to sign for Petro-Canada Resources (USA) Inc. in
regards to the noted USR application and any related documents.
Please contact me with any questions or comments. Thank you in advance for
your cooperation.
PETRO-CANADA RESOURCES (USA) INC
Very truly yours,
Alan Vrooman
Permitting Director
SMM
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Suite 400,1099 18th Street • Denver, CO 80202.1904
Office:(303)297-2300 • Fax(303)297-7708 • www.petro-canada.ca
PEA Anon, Petro-Canada Resources(USA) Inc. Weld County Planning Department
GREELEY OFFICE
MAY 0 6 2005
May 4, 2005 RECEIVED
Ms. Sheri Lockman
Weld County Department of Planning
1555 North 17th Avenue
Greeley, Colorado 80631
Re: Application for Use by Special Review (USR) - Authority to Sign
Township 6 North, Range 67 West
Section 35: NEy
Weld County, Colorado
Dear Ms. Lockman:
Please accept this letter as authorization for Susan M. Miller, Operations
Technician for Petro-Canada Resources (USA) Inc., to execute the USR
application referenced above and all related documents thereto.
Thank you for your consideration in this regard.
Sincerely,
lc/kat/2M)-
Edward L. McLaughlin, Vice President
Land & Business Development and Director
ELM/kv
Enclosures
cc: Susan Miller
Suite 400, 1099 18th Street • Denver,CO 80202-1904
Office:(303)297-2300 • Fax(303)297-7708 • www.petro-canada.ca
��I� Weld County Planning Department
t�F Al1ADA, Petro-Canada Resources(USA) Inc. GREELEY OFFICE
MAY 17 2005
RECEIVED
May 12, 2005
Ms. Sheri Lockman
Weld County Department of Planning
1555 North 17th Avenue
Greeley, Colorado 80631
Re: Authorization to Sign
Use by Special Review Applications
Weld County, Colorado
Dear Ms. Lockman:
Please accept this letter as authorization for Ms. Susan M. Miller, Operations Technician
for Petro-Canada Resources (USA) Inc., to execute the referenced applications and all related
documents thereto on behalf of Petro-Canada.
Thank you for your consideration in this regard.
Sincerely,
Edward L. McLaughlin, Vice President
Land& Business Development and Director
ELM/kv
Enclosures
cc: Susan Miller
Suite 400, 1099 18th Street • Denver,CO 80202-1904
Office:(303)297-2300 • Fax(303)297-7708 • www.petro-canada.ca
DEC-03-2004 10:_2 cl ,F,'F 333 029 7c.1-7 P.0_
OFFICE OF THE SECRETARY OF STATE
OF THE STATE OF COLORADO
CERTIFICATE
I, Donetta Davidson, as the Secretary of State of the State of Colorado, hereby certify that,
according to the records of this office,
Petro•Canada Resources(USA)Inc.
is a
Corporation
formed or registered on 02/29/1980 under the law of Colorado, has complied with all applicable
requirements of this office, and is in good standing with this office. This entity has been
assigned entity identification number 19871393712
This certificate reflects facts established or disclosed by documents delivered to this office on
paper through 11/24/2004 that have been posted, and by documents delivered to this office
electronically through 12/03/2004 @ 10:31:00 •
I have affixed hereto the Great Seal of the State of Colorado and duly generated, executed,
authenticated, issued, delivered and communicated this official certificate at Denver, Colorado
on 12/03/2004 @ 10:31:00 pursuant to and in accordance with applicable law. This certificate is
assigned Confirmation Number 6100398 .
•
•
•
•
•
fig( t*F
, caxc al2{D 441
Secretary of State of the State of Colorado
C-
End of Certi icat
Notice:4 certificate retied electronically from the Colorado Secretory of State h Web Me is filly and immediately valid and efkettve However,
a,an option,the issuance and validity of a certificate obtained electronically may be established by visiting the Certificate Conftrmaion Page of
the Secretary of Statel, Web site, hn!._/www cat'tate cn.vehi;Sen;fcatC$enrchQritsrin.Jg entering the certificate c confirmation number
displayed an the certificate, and following the infractions displayed ¢onfirmin_g the issuance of a nrrficate is merely optional and is not
nettmman to the valid and effective issuance of a r4nifiratr. For more information.visit our Web site, hitp://www.sossiate.co.us/click Sternness
Center and reject"Frequently Asked Question."
DE:-0?-2004 -@:_2 _ -F -_
Z6V . CQ4n.N.
STATE' ; N ; RADO
X187 ,
DEPARTMENT OF
STATE
CERTIFICATE
I, DONETTA DAVIDSON, SECRETARY OF STATE OF THE STATE OF
COLORADO HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF
THIS OFFICE, ARTICLES OF AMENDMENT WERE FILED ON NOVEMBER
30, 2004 CHANGING THE CORPORATE NAME OF
PRIMA OIL & GAS COMPANY
(COLORADO CORPORATION)
TO
PETRO-CANADA RESOURCES (USA) INC.
Dated: November 30, 2004
Ala lat,{14-e.<-)' -.
SECRETARY OF STATE - �
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TOTAL. P.04
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3241874 12/0712004 11:68A Weld County, CO
€62141 of 3 R 16.00 D 0.00 Steve Moreno Clerk& Recorder
•
Document Processing Fee
If document is ou paper. $25.00
If document is filed electronically. CturentlyNot Available
Pees are subject to change.
Per electronic filing and to obtain
copies of filed dacumanta visit
vvnw tuna sMa.m.41
Deliver paper documents to: _nigli.1C616 C
Colorado Seneeny of State 75.60
Badness Division
1560 Broadway,Suite 200 `=CFE7R'i i ST iTE
• Denver,CO 80202.5169 11-30-2 I; 13rls:17
Paper docomeots must be typed ormachineprintd. novasrnaru onciun ONLY
Articles of Amendment
Sled pursuant to§7-90.301,et sea.and§7-110-106 of the Colorado Revised Statutes(C.RS.)
ID number. 19871303712
1.Entity name:
/'• Prima O1&Gas Company
•
ganging dm mime grinscorporation indicate moat
BEFORE the mane cheap)
2.New Entity name:
(if applicable)
Petro-Canada Resources(USA)Inc.
3.Use of Restricted Words(finny of thaw
rum.are contained in an emlyawa,eve 0"bank"or"trust"or any derivative thereof
name Nan moony.trade name or trademark D"credit union" 0 "savings and loan"
stamina this dmmmmr.make she wlicabb ❑"mince"."casualty","mutual",or"surety"
sdcnlaa:
4.Other amendments,If any,are attached.
5.1f the amendment provides for an exchange,reclassification or cancellation of issued shares,the attachment
states the provisions for implementing the amendment
6.If the corporation's period of duration
as amended is less than perpetual,state
the date on which the period of duration
expires:
addd1»y)
OR
If the corporation's period of duration as amended is perpetual,mark this box: ❑
7.(Optional) Delayed effective date:
Notice:
Causing this document to be delivered to the secretary of state for filing shall constitute the affirmation or
acknowledgment of each individual causing such delivery,under penalties of perjury,that the document is the
individual's act and deed,or that the individual in good faith believes the document is the act and deed of the
person on whose behalf the individual is causing the document to be delivered for filing,taken in conformity
r with the requirements of part 3 of article 90 of title 7,C.RS.,the constituent documents,and the organic
Rev.7/I3/2004
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3241874 12/07/2004 11:68A Weld County, CO
2 of 3 R 16.00 D 0.00 Steve Moreno Clerk&Recorder
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statutes,and that the individual in good faith believes the facts stated in the document are true and the
document complies with the requirements of that Part,the constituent documents,and the organic statutes.
This perjury notice applies to each individual who muses this document to be delivered to the secretary of
state,whether or not such individual is named in the document as one who has caused it to be delivered.
8.Name(s)and address(es)of the '
individual(s)causing the document
to be delivered for filing: Shepaton Michelle H.
gait) (Fds0 (Middle) (Shit)
1550 17th Street,Swta 800
(gat mime and mother or Pon O)pcebjwnailo&
Denver CO 80202
(Ca/) !save (mnalaip Cde)
(Peodmn-rao➢lee^hde (Como-rug t/S)
(The document seed not Male the to mit mid allies eonJan one lndhidaf However,ryas wish to store the name and address
(any additional ladhldusla cawing the document so be dellwdfaryrlhQ,mark IMF MiDaed&dude an aarheentstattg the name
and address afsad d&ed.dn)
Disclaimer:
This form,and any related instructions,are not intended to provide legal,business or tax advice,and are
offered as a public service without representation or warranty. While this form is believed to satisfy minimum
legal requirements as of its revision date,compliance with applicable law,as the same may be amended from
time to time,remains the responsibility of the user of this form. Questions should be addressed to the user's
attorney.
•
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0' - Rev.7/13/2004
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DEPARTMENT OF STATE
I hereby certifycomplete copy cthis office anddmitted to record in
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Secretary of State
By ___StAlf it.t.r4_.&_2
•
OFFICERS AND DIRECTORS
OF PETRO-CANADA RESOURCES (USA) INC.
FORMERLY KNOWN AS
PRIMA OIL& GAS COMPANY
Name Titles Address
Donald M. Clague President and Director 1099 18'"Street, Suite 400,
Denver, CO 80202
Charles W. Pollard Vice President Engineering and 1099 18`" Street, Suite 400,
Operations Denver, CO 80202
Edward L. McLaughlin Vice President Land and Business 1099 18`" Street, Suite 400,
Development and Director Denver, CO 80202
Robert L. Friesen Chief Accounting Officer 1099 18b'Street, Suite 400,
Denver, CO 80202
Hugh L. Hooker Secretary 150 -6rAvenue S.W.
Calgary, Alberta T2P 3E3
Kathleen R. Vigil Assistant Secretary 1099 18`" Street, Suite 400,
Denver, CO 80202
Dennis J. Gustafson Assistant Secretary 1099 18`" Street, Suite 400,
Denver, CO 80202
W.A. (Alf) Peneycad Director 150- 6`"Avenue S.W.
Calgary, Alberta T2P 3E3
#606858.1
07/01/2005 13 : 57 FAX 303 629 3450 HORSEY & WHITNEY a 002/003
r, Sj) !DORSEY
MICHAEL.1.WOZNIAK
(303)620-3424
•
FAX(303)629-3450
woznlak.mlketadorsey.com
•
July 1, 2005
VIA TELECOPY TO: (970) 304-6498
Ms. Sheri Lockman
Planning and Zoning Department
Weld County, Colorado
918 10"' Street
Greeley, CO 80631
Re: Petro Canada Resources (USA), Inc.'s ("PCR")Application for Use by Special
Review (Case Number USR 1514 ("USR")— N/2NE/4 of Section 35 Township 6 •
North, Range 67 West, Weld County, Colorado ("Property")— Kodak 35-11 and
Kodak 35-12 ('Wells")
Dear Ms Lockman:
We represent PCR in the Use by Special Review referenced above currently pending
before the Board of County Commissioners and set for hearing on Tuesday, July 5, 2005 at
1:30 p.m. We are in receipt of Broe Land Acquisitions II, LLC's ("Broe") June 30, 2005
correspondence to you in which it asks for a 30-day continuance and suggests other conditions
of approval on the USR.
Please accept this letter as our request that you deny any request for such a
continuance. This matter has been properly pending on the BOCC's docket and both Broe and
PCR have discussed these two wells over an extended period of time. Moreover, PCR has
appeared at the Town of Windsor hearings and has secured the Town's approval through its
public hearing process. Broe chose not to participate in the Town's process to any meaningful
degree. A continuance at this late date would prejudice the rights of PCR.
Furthermore, Broe's suggested condition that the Kodak 35-11 and Kodak 35-12 Wells
be drilled directionally from the Christensen 1-35 Well pad is not economically and technically
feasible. Evidence of the technical and economic ramifications of this proposed condition will be
presented at the hearing-
DORSEY A WHITNEY LLR • WWW DORSEY.CON T 303.1929.3400 • F 303 020 3450
REPUBLIC PLAZA RUILDING SUITE 4700 070 SEVENTEENTH STREET DENVER.CO 90202-5U'7
.•annc ca-
07/01/2005 13:57 FAX 303 629 3450 D0RSEY & WHITNEY RI 003/003
� n
)00 DORSEY
Ms. Sheri Lockman
July 1, 2005
Page 2
Thank you in advance for your cooperation. Please feel free to call me should you have
any questions.
Very truly yours,
DORSEY& WHITNEY LLP
lady 4,5,4i_al<
Michael J. Wozniak
cc: Cynthia Danner-Weide (via telecopy)
John Stone (via telecopy)
Lee Morrison
DORSEY &wHITNCY LLP4847-9362-35521 7/1/2005 2:07 PM
t7RrI1DA, Petro-Canodo Resources(USA) Inc.
VIA FACSIMILE and U.S. Mail
June 14, 2005
Mr. John Stone
Broe Land Acquisitions II, LLC ("Broe")
352 Clayton Street
Denver, Colorado 80206
Re: Petro-Canada Resources (USA), Inc. ("PCR")
Kodak 35-11 and 35-12 Wells (the "Wells)
NE/4 of Section 35, Township 6 North, Range 67 West
Weld County, Colorado (the "Property")
Dear Mr. Stone:
We have reviewed your letter dated June 7, 2005 and wanted to follow up with our June
9, 2005 call concerning the requests contained in your letter.
As you acknowledge, PCR and Broe have been communicating for some time concerning
PCR's Wells on the Property. As a result, we had hoped to see our proposed Wells reflected on
your plat, but did not. As you know, PCR received applications for permits to drill ("APDs")
from the Colorado Oil and Gas Conservation Commission("COGCC") on April 5, 2005 with
respect to each of the Wells. Accordingly, PCR filed applications for use by special review with
Weld County, and the final hearing on the approval of those applications is scheduled for July 5,
2005. We do not anticipate a problem in obtaining approval on those applications.
We have, however, heard your concerns regarding the Wells and your development, and
are hopeful we can reach an agreement acceptable to all parties concerning the location and
drilling of the Wells. You have requested that we drill the Wells directionally. As we discussed
in our telephone call, we will consider drilling directionally but not without Broe being
responsible for the additional directional costs.
Specifically, for PCR to drill the Wells directionally, Broe would be required to pay the
incremental costs of directionally drilling prior to PCR drilling the Wells. Our costs, however,
obtained from CAZA, differ significantly from what you have suggested as reasonable costs
concerning the directionally drilling of two wells. We estimate the directionally drilling costs for
both Wells to be approximately $200,000. Broe would need to pay those costs for it to be
economically productive for PCR to drill the Wells directionally versus vertically. The estimates
you received from CAZA appear to include only the additional drilling costs. There are other
costs in addition to the directional drilling, including additional casing costs, down-hole
Suite 400, 1099 18th Street • Denver,CO 80202-1904
Office:(303)297-2300 • Fax(303)297-7708 • www.petro-canada.ca
equipment, down-hole tools, as well as additional personnel costs that are not associated with
CAZA's directional bid.
Rather than Broe paying the costs in advance, PCR may also be amenable to having Broe
relinquish its approximate 7.27%royalty interest in the two Wells and pay PCR the incremental
cost of drilling less and except the value of the royalty interest, if the reserve value would cover
the cost of directional drilling.
If paying the directional costs is unacceptable to Broe, and if Broe is unwilling to
relinquish its royalty interest, PCR would consider one other alternative. PCR would consider
foregoing the drilling of the two Wells, if Broe were willing to grant PCR a lease or leases on
other mutually agreeable tracts where Broe owns the unleased minerals. However, any wells that
may be drilled in a newly leased area would be drilled as straight hole locations.
We would like to meet to discuss these options at your earliest convenience. If you have
another reasonable alternative, we are willing to entertain that as well. If we cannot agree to an
alternative solution, PCR intends to drill the Wells as straight hole locations. Please contact me
to schedule a mutually agreeable time and location to discuss these proposals.
Sincerely,
Cindi Danner-Weide, CPL
Senior Landman
r
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•
d°J( h/3o/ZAoc
Weld County Planning Department
j31kOE GREELEY OFFICE
JUL 5 2005
__Clayton Street RECEIVED
Denver,Colorado 80206
Telephone 303-393-0033
Facsimile 303-393-0041
www.broe.com
June 30, 2005
Ms. Sheri Lockman
Planning and Zoning Department
Weld County, Colorado
918 10th Street
Greeley, Co 80631
VIA FACSIMILE (970-304-6498) and OVERNIGHT DELIVERY
RE: Petro Canada Resources (USA), Inc.'s ("PCR") Application for Use by Special
Review (Case Number USR 1514) ("USR")—N/2 NE/4 of Section 35 Township 6 North,
Range 67 West, Weld County, Colorado ("Property") - Kodak 35-11 and Kodak 35-12
("Wells")
Dear Ms. Lockman:
As a follow up to our recent discussions, this letter outlines certain objections of Broe
Land Acquisitions II, LLC ("Broe") to the location of the Wells outlined in the PCR's
USR application.
Broe has recently purchase the subject property, and certain surrounding property from
Eastman Kodak Company. Broe has planned real estate development uses for the
Property, which are allowed under the current Weld County zoning for the Property, I-1
(Industrial) Zone District. The planned locations of the Wells conflict with these planned
uses. A copy of our current proposed development plan, indicating PCR's proposed
surface well locations, is annexed to this letter as Exhibit 1. Broe has shared these
development plans with PCR, Weld County staff and with the Board of County
Commissioners.
Included in Broe's development plans is the proposed future alignment of Crossroads
Boulevard, which is planned to be extended east from state highway 257 to connect to
"0" Street in Greeley. Broe has participated in meetings at the request of engineering
staffs from Weld County, City of Greeley and Town of Windsor to discuss the alignment
of the future Crossroads Boulevard and "0" Street. It is apparent that at least one of the
planned Wells could interfere with this road alignment. See, Exhibit 1. The comments of
the Town of Windsor on this application recognize this apparent conflict.
r
Profound Performance,-
,,.., Broe has proposed an ample oil and gas operations area, around PCR's existing
Christensen#1-35 Well, from which PCR could drill both of these wells directionally.
By consolidating their operations PCR should be able to reduce certain of its operating
costs. Broe would also consider the possibility of expanding this area to accommodate
certain future wells, to the advantage of PRC. A copy of Broe's correspondence to PCR,
dated June 7, 2005, is annexed to this letter as Exhibit 2. There appears to be no dispute
that directional drilling of these wells from the Broe-proposed surface location is
technically feasible and within oil industry norms. Broe is currently negotiating in good
faith with PCR to reach a feasible and mutually accommodating agreement regarding the
location of the Wells.
We believe the incompatibility is supported by Section 23-3-220 (A)(4) of the Weld
County Planning Code provides that an applicant for a USR must show that the proposed
USR, "will be compatible with future development of the surrounding area as permitted
by the existing zoning and with the future development as projected" under the
Comprehensive Plan. As shown above, the surface locations of the wells, as proposed by
PCR, would not have such compatibility.
We understand that directional drilling of the proposed wells from the proposed oil and
gas operations area is both authorized by the rules of the Colorado Oil and Gas
Conservation Commission, and is consistent with established industry practice.
Accordingly, we believe the requirements of Section 23-3-220(A)(4) of the Planning
Code, that Proposed USR be located so as to be compatible with future development
already permitted by the Code, is an enforceable local regulation.
Based on the above, Broe respectfully requests that (1)the hearing in this matter be
continued for 30 days to permit continued negotiations between the parties, or in the
alternative, that (2) the USR be conditioned upon a surface location for the wells that is
within an oil and gas operations area surrounding the Christensen #1-35 Well.
Sincerer
oh n Stone
Broe Land Acquisitions II, LLC
Encl: Exhibits I & II
Cc: Ms. Monica Daniels-Mica, Weld County Planning & Zoning
Ms. Cynthia Danner-Weide, PCR
Mr. Lee Morrison, Weld County Assistant Attorney
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252 Clayton Street
Denver,Colorado 80206
Telephone 303-393-0033
Facsimile 303-393-0041
June 7,2005 VIA FAX(303)297-7708 AND
FEDERAL EXPRESS
•
Cynthia A.Danner-Weide,CPL
Senior Landman
Petro-Canada Resources(USA)Inc.
1099 18th Street,Suite 400
Denver,Colorado 80202
Re: Request For Accommodation Regarding Surface Locations
Proposed Kodak 35-11 and 35-12 Wells(the"Wells")
NE/4 of Section 35,Township 6 North,Range 67 West
Weld County,Colorado(the"Property") •
Dear Ms. Danner-Weide:
We have previously advised Petro-Canada Resources(USA)that the Broe Land Acquisitions II,LLC("Broe")is
under contract to purchase the Property and certain adjacent lands. Petro-Canada has also notified us of its intent to
drill the Wells on the Property. Because industrial development of the Property is the reason for its acquisition by
Broe,the surface location of the Wells and other oil and gas facilities is of serious concern. In fact,placement of
those facilities at certain surface locations could have severe and adverse economic impacts on Broe.
We therefore requested negotiations with Petro-Canada regarding the surface location of proposed oil and gas
facilities. Based on our conversations with Petro Canada and subsequent investigation we have developed the
following proposal under which we believe the respective rights of Broe and Petro-Canada to use of the surface of the
Property may be mutually accommodated.
Background
We began sharing our land development plans with you and your team in February 2005. Since then, we have met
over the phone and in person to reiterate our plans for developing the land both on the east and west sides of the
Kodak plant site.Since we last met in April 2005,we have expended significant resources to understand your
concerns including meeting with a number of experts in the oil and gas industry,including drillers,petroleum
engineers,well service companies and oil and gas drilling consultants. Through this process,we feel we now
adequately understand the issues surrounding the location of these planned wells and believe we have a reasonable
and mutually accommodating solution.
Our Development Plans
We have spent a significant amount of time and money working with a team of land planners,civil engineers and other
consultants during our land planning and development process at the Property. We have begun the annexation process
for a portion of the land and a large manufacturer is expected to begin construction of facilities within the annexed area
within the next few months. We have also met and shared our land plan and roadway plans with the following public
entities:
1. Town of Windsor—Mayor,Town Manager,Town Attorney,Planning Department,Engineering Department
2. City of Greeley—Mayor, City Manager,Planning Department, Engineering Department
3. Weld County—All of the County Commissioners,Planning Department,County Attomey.
Profound Performance" E
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Broe's surface development plans have been well received in these informal discussions and the plans appear to be
consistent with the development plans for each of the municipalities.
Petro-Canada's Drilling Plans
Petro-Canada currently proposes to drill both of the Wells vertically;the Kodak#35-11 Well at a location that is 850 FNL and
619 feet FEL of Section 35,and the Kodak#35-12 Well at a location that is 849 FNL and 1,857 feet FEL of Section 35. Each
well would be within the drilling window authorized by COGCC Rule 318A(a)(I). However,COGCC Rule 321 permits Petro-
Canada to directionally drill the Wells,such that their bottom-hole locations remains within the authorized drilling window,but
their surface location accommodates surface development considerations.
Because Petro-Canada proposes to drill on lands which have been zoned industrial by Weld County,"use by special
review"permits are required from the County. Petro-Canada has applied for these permits and its applications are
scheduled for hearing before the Weld County Planning Commission on July 5,2005.
Our Rationale
The surface locations you currently plan to utilize in drilling have significant conflicts with our development plans,a
concern which we have shared with you previously.
The well planned in the NE/4NE/4 of Section 35(the Kodak#35-I I)would conflict with the intersection of future
north/south County Road 21 Y.and future east/west Crossroads Boulevard.Crossroads Boulevard is a planned 5
lane major arterial road which will provide regional east west access between I-25 and O Street in Greeley. We also
have a combination of light industrial, flex,retail and residential planned for the site. Clearly,an oil&gas well is not
suitable or compatible with the planned roadway network nor is it compatible with the planned uses.
The well planned for the NW/4NE/4 of Section 35(the Kodak #35-12)is also in close proximity to the future
,�. Crossroads Boulevard and is within an area planned for light industrial,flex and/or office space. None of these
planned uses are suitable or compatible with an oil and gas well operation.
Proposed Well and Facilities Locations
Given the land planning constraints mentioned above and the incompatibility of these plans with the operation of oil
and gas wells in the immediate area,we feel that the most reasonable surface location for the two new wells,and their
related production facilities,is immediately adjacent to your existing Christiansen#1-35 Well and its production
facilities("Existing Well"). This location would allow Petro Canada the opportunity to consolidate its operations,
similar to what is planned for wells 34-45,34-41 and 34-44 in Section 34.
The horizontal kick component of the directional drilling requirement for each well would be approximately 1,300'
from the currently permitted bottom hole location. This equates to an approximate increase of only about 100-200
foot total borehole distance when compared to a vertical bore hole,which we understand has minimal cost impacts on
both drilling and operations. The finished array of well heads should be in a linear pattern,in an area that is as
condensed as is practically possible. All surface equipment should be located as close as possible to the Existing Well
and lie to the south of the latitudinal line running through the Existing Well.
We contemplate that Broe would grant Petro-Canada,for the life of its lease,an exclusive"oil and gas operations
area,"large enough to accommodate the Existing Well and the proposed Wells. Broe would also consider waiving
setbacks for the drilling of future wells and placement of related production facilities. In this way,Petro-Canada
would be assured of having a surface location for these wells,regardless of the timing of surface development in
relation to oil and gas development. Reasonable rights of way for the necessary gathering line and access road would
also be granted.
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We have discussed the planned location with a number of oil and gas industry experts and they agree that this solution
is a reasonable one. This location would result in deviated drilling, which is currently planned for the 3 wells in
Section 34 and it is reasonable to expect that if coordinated well,the two proposed wells in Section 35 could be
drilled using the same rig as is planned in Section 34,thus making the drilling operation more economical and cost
effective. We note that a cursory review of Weld County drilling permits issued by COGCC in April 2005, include
numerous Codell/Niobrara wells permitted for directional drilling. These include many in which the surface and
bottom-hole locations are in excess of 1,300 horizontal feet.
Conclusion and Request
Overall,we feel this is a reasonable and mutually accommodating request. We would like to work with Petro-Canada
in the next few weeks toward a surface use agreement incorporating these terms,which we could then present to the
Weld County Planning Commission at its scheduled hearing.
When you have had the opportunity to consider the above,please contact me so that we can begin in earnest that
process
Sincerely,
I
John Stone
cc: Ted Hannon—Petro Canada
Dwight Johnson—Broe
Dan Noland-Broe
/.. Craig Stith—Kodak
Eric Swanson—Broe
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