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Home My WebLink About20053189.tiff MEMORANDUM Avai wineTO: Board of County Commissioners 9/29/05 COLORADO FROM: Chris Gathman - Planner II 6I A. SUBJECT: PZ-1074 (Highview Ranch) PZ-1074 has reasonably addressed all conditions of approval prior to scheduling Board of County Commissioners hearing. Therefore PZ-1074 can be scheduled for a Board of County Commissioners hearing. • SERVICE,TEAMWORK,❑tTEGRITY.QUALITY EXHIBIT 2005-3189 1 ye#7079 JUL-18-2005 MON 01 : 17 PM SOUTHWEST WELD PLANNING FAX NO. 720 652 4211 P. 01 85/87/1996 87:58 3034431221 WRIGHT PAGE 01 Frank Wright 22 Seven Mb Dr. Boulder CO 50002 303 440 0321 303 443 1221 Pax To: Chris C}atpman Fax: 978.3046498 or 720 652 4211 From: Frank Wright Dab: 11 07/17/05 Re: C, Cledeer‘irao including cover CC: ❑ Uipmt x For Review El Plats Comment 0 Meese Reply 0 Memo Rowel .:• e • • "h•eW C+arm.a-Ri- 1 to n:70••-•‘- ,C��,i9."aa].t V r M v :n iM s V&c L -s- . \i"J u. a7ectjc e c cn Respectfully, \r''‘ C 4.0 I' (,Z caraco 4-4.)-w cs ct4.-1- - _t _l1Unc. L�1 J/II� c;.wc'.c wl; Frank Wright cnw4-4.� i� A'/kuc-cj ;,-Sr- o: a a. .�„a+". Q r • r4,�, Aita ik. • JUL-18-2005 MON 01 : 17 P11 SOUTHWEST WELD PLANNING FAX NO. 720 652 4211 P. 02 05/07/1996 07:58 3834431221 WRIGHT PAGE 02 . ..., n,•• 4‘b {1 Ilk YLvfl J'1R r,AM . ... _+: .SIJr< il. I'.'.'- F. l''.. BERNARD LYONS DAM,.R.913RN 9.D 505-7r(-?' IUGMAXDN,LYONS,a GADDTS & KAHN YFJC 317341;••. .FEFPI EY I YAM' :OW W,CADDIS r RAIL A rnaPSSaIOvAy coar0AA710M TUWnp STUDLEY A.HALL ATTORNZYi AVD COVNSZLOKI PCSTOP)a4'eC.: STEM,'P.gismo LO'�C,ya;rr,CO08v3;�•� `yawl:*SLa5awDM( Street oder, ANTON v.WORSE /WILE L.it Isom& Sb r fl •.. somata 1sP9 AK7t 91y c;. C 1:1.C.*MOLD jkaitnfeb'glaw.con: November 17, 2004 Prank Wright VIA FACSIMILE 303-413-2221 • Re: Proposed Drainage Agreement with the New Consolidated Lower Boulder Reservoir an Ditch Company Dear Mr.Wxright:' • • I am providing this Reimburaoment Agreement pursuant to conversations between you and Dave Yardley, Secretary of the New Consolidated Lower Boulder Reservoir and Ditch Company ("the Company"). Mr. Yardley has indicated you may want to construct certain. drainage structures which will deliver drainage water into the Lower Boulder Ditch("Ditch"). Before pursuing this matter any funhc, the Company requires confirmation that you wil: be responsible for payment of all legal fees and engineering fees, as well as any of the Company's administrative costs incurred in approving plans and specifications and entering late a Drainage Agreement between you and the Company which may license drainage into the Ditch or construction affecting the Ditch or the associated easement. • Once the •Company receives. this confirmation and is assured that you will pay its attorneys' fees, engineering fees and,admiaistrative costs,the Company will review the plans and specifications that you may have-prepared and discuss an agreement with yon. Please understand that at this time the Company is neither panting you a license to begin construction or co interfere with tbe,12itrdh, or the associated easement, nor guaranteeing that it'will enter into ar. Agreement to accept drainage water or to license any construction. Please sign below to confirm that they will be responsible for the Company's expenses in this matter. Please sign and return an original of your signature. JUL-18-2005 MON 01 : 17 PM SOUTHWEST WELD PLANNING FAX NO. 720 652 4211 P. 03 05/07/1996 07:58 '3034431221 WRIGHT PAGE B3 • .. ,.A:>. '� •:i" 1'• .RISABD LYONS:. ADDIS & K A Pf OP!EF:C..rh" :C:.RPS.ir:v% A.TTOaNiY. l'+0 CCi:i`!+:LOBS frank Wright November 12, 2004 !'age 2 please contact me if yoL b questions.uestions. if 311 entity is creccedlAg •ii': 3 this pre ee. 0:ease indicate below and have an aatherizee, re:.cscntat»ve of that c:tiny' sign os;m.. P.i5. phase provide a mailing ade.ress, telepborc t t rr tes and c-mail, if ava1:acit. ..e . iq•: V BERNARD,LYor1S,CADDIS a. KAM'S': a Frofes 1 Co,rporrion ,,e, ey 7.,/Cabo v\C elCrialC i IL,Jr•Ai, ' , y ” ._, , „... .. ..4...,.... ,...,,,..„....,,„ -, „.. ...,. _, ,.. g:b�:a re of Authorized Rel►s�s tat1V= ....5cc.j;i t•t Print Name it tee ti . Iy. t C; «:S Data ••;,, . I;Khali . •w.d•'h,l,fgL+wMvro0.iWa+lwWRtl,'1ur1frtA nL.a,Mt • Memorandum To: C CC:From: f C-��anr,\L wM6kt Date: — — 0 S Re: -c"t S)V,U k G..`) vr�-cam, � t cm i � Y 1 n) w `, 1 Se r l^ 14-41" Cr\ -S0 Q `avt. _ j29-0-e— (*cc- ks i 4\300 23 , EXHIBIT 1 4tYt /O'7y ^ DISCHARGE CERTIFICATE AGREEMENT THIS DISCHARGE CERTIFICATE AGREEMENT is dated I I ' ( C , 2005, and is between Frank E. Wright and Loretta R. Wright ("Developer"), and the New Consolidated Lower Boulder Reservoir and Ditch Company ("Company"), a Colorado nonprofit corporation, (collectively, the"Parties"). RECITALS The real property described in Exhibit A, attached hereto and incorporated herein by this reference, and consisting of approximately 74.73 acres, (the "Property") has historically drained storm water into the Lower Boulder Ditch (the "Ditch"). The Property now is being developed as Highview Ranch. Such development may change the quality and quantity of surface water flowing from the Property. Developer desires to continue to drain storm water from the Property into the Ditch. Subject to the terms and conditions of this Agreement and the continuing performance of all obligations hereunder by Developer or his assigns or the successors in interest to the Property, Company is willing to accept the drainage of surface water from the Property into the Ditch, which includes the historic quality and quantity of water and the developed quality and quantity of water described in the report by Ehrhart Griffin and Associates dated May 6, 2005, as revised on July 11, 2005 and the Addendum thereto dated August 18, 2005. Developer has designed, engineered and provided to Company detailed specifications of structures, improvements and facilities to manage and control the quality and quantity of storm water discharged from the Property into the Ditch based upon the diagram and specification of such structures, improvements and facilities described in the May 6, 2005 report by Ehrhart Griffen and Associates, as revised on July 11, 2005 and the Addendum to the report dated August 18, 2005 (with the exception of Appendix A thereto, "reference materials") which are attached hereto as Exhibit B and incorporated herein by this reference. Company has reviewed and consented to the design and specification set forth in Exhibit B as indicated by the initials in Exhibit B. The Parties have consulted such technical, engineering and legal representatives, as they deem necessary prior to the execution of this Agreement. NOW THEREFORE, in consideration of the recitals above and the mutual promises, benefits, duties and obligations set forth below, the Parities agree as follows: 1. Representations as to Authority. Developer warrants, represents and promises to Company that it is the owner of the Property, and it has full power and authority to enter in this Agreement and undertake the duties and obligations set forth herein. Developer warrants and represents to Company that the persons executing this Agreement on behalf of the Developer have been duly authorized to do so by and upon execution of this Agreement by such authorized representative; this Agreement shall by binding upon the Developer and all successors in interest. 2. Issuance, Ownership and Assessment of Drainage Certificate. Within 30 days of receiving final plat approval of the project from Weld County, Developer shall pay to Company the sum of $5,000 and the Company shall immediately issue to Developer a Drainage Certificate. Said Certificate shall have no par value, have no voting rights for the officers, directors or other matters regarding the management or governance of Company, and be transferable only to Developer's successors and assigns in interest to the Property. Developer (or his successors and assigns) shall pay to Company an annual assessment of $1,000 starting on or before April 1 of each year, commencing in any year when prior to April 1 of that year the facilities in Exhibit B are completed, to reimburse Company for its operating and maintenance costs of the facilities described in Exhibit B 1 b ig 1V li and other operating and maintenance costs of the facilities described in Exhibit B and other operating and maintenance costs resulting from the acceptance of storm water pursuant to this agreement. Fifty percent of the annual assessment shall be allocated to routine annual operation and maintenance cost and the remaining fifty percent shall be credited to Developer (or his successors and assigns) to be used for extraordinary repair and replacement cost. The annual assessment shall be adjusted annually starting with the second payment in accordance with the United States Bureau of Labor Statistics Consumer Price Index for Denver-Boulder, All Items, All Urban Consumers, or its successor index for the previous year. Developer(or its successors and assigns) shall be responsible for the payment of the cost of any extraordinary repairs or replacements of the facilities described in Exhibit B. If Company determines that an extraordinary repair or replacement is necessary, it shall consult with Developer (or his successors and assigns) and provide Developer (or its successors and assigns) a cost estimate of the extraordinary repair or the replacement. In the event Developer or its successors and assigns object to the repair or replacement or the cost, the objection may be subject to binding arbitration pursuant to the rules of the American Arbitration Association. The initial costs of the arbitration shall be shared equally by the parities; however, the final costs of the arbitration shall be apportioned between the parties (and if necessary reimbursed) in accordance with the Arbiter's ruling. The standard in arbitration shall be the extraordinary necessity of the extraordinary repair or replacement and the reasonableness of the cost. The obligations of this paragraph shall run with the Property, although these obligations may be assigned to and performed by a homeowners association, which performance shall not relieve the owners of the Property of their proportionate responsibility for performance of the obligations assigned Developer herein. Prior to requesting any payment for any extraordinary repairs or replacements, Developer (or its successors and assigns) shall be given credit for fifty percent of the annual amounts previously paid pursuant to this paragraph (not including the $5,000 initial payment). Company shall give the Developer (or his successors and assigns) an accounting of funds received and expended at the time it makes a request for an extraordinary repair or extraordinary replacement. Any amount greater than $1,000 for extraordinary repairs or replacements will not be required to be paid in full but can be paid by Developer (or his successors and assigns) in equal monthly installments over a period of three months without having liens placed on the Property. 3. Agreement to Permit Discharge of Storm Water. Subject to the terms and conditions of this Agreement, Company agrees that, so long as there is no default under this Agreement, the ownership by Developer (or his successors and assigns) of this Drainage Certificate shall entitle Developer(or his successors and assigns)to discharge storm water from the Property into the Ditch as described in Exhibit B. No surface water shall be discharged from the Property into the Ditch other than as specified in Exhibit B without the prior written consent of the Company. The rights granted herein to discharge storm water from the Property into the Ditch shall be permanent and perpetual, and no party may terminate this Agreement without the consent of the other, except as otherwise provided in Paragraph 8 or 9, below. 4. Prohibited Material. Developer agrees that it(and his successors and assigns) shall not knowingly or negligently cause or permit the discharge into the Ditch, which is prohibited under this Agreement. For the purposes of this Agreement, "prohibited material" shall mean any contaminant, hazardous waste, or other material regulated or controlled by federal, state or local statue or ordinance, in concentrations or quantities exceeding those permitted by applicable federal, state or local statute or ordinance, as such statutes and ordinances now exist or as are hereafter enacted or amended, and in addition, any other material or substances which would materially interfere with Company's use, operation, or maintenance of the Ditch. Developer(and his successors and assigns)agrees to comply with all applicable federal, state and local statutes and ordinances, as now exist or as are hereafter enacted or amended, pertaining to the discharge of any substance or material in the Ditch. It is understood by all parities that there will be livestock on the property and a means to control the weeds on the Property that will not be prohibited unless such activity generates a prohibited material to be discharged into the Ditch. N 2v 5. Obligations Following Release of Prohibited Material. In the event that any prohibited material is discharged from the Property into the Ditch, Developer (or his successors and assigns) shall immediately, upon becoming aware of such discharge, give written notice of such release to Company and all federal, state and local agencies that require such notice, including, but not limited to, the U.S. Environmental Protection Agency, the Colorado Department of Public Health and Environment, and the Weld County Health Department. In addition, Developer(or his successors and assigns) shall take, or cause to be taken, at its sole cost and expense, any and all actions necessary or required by law to abate, control, eliminate and remediate such release in compliance with all federal, state, and local laws, rules and regulations. If Developer(or his successors and assigns) is in violation of paragraph 4, above, fails to abate, control, eliminate and remediate such releases as provided herein within three days after becoming aware of such discharge, or in the event of a health and safety emergency, Company is specifically empowered, but not obligated, by the terms of this Agreement to take any action and advance any reasonable and necessary sums as it deems reasonable or necessary, as determined in Company's sole and absolute discretion, to abate, control, eliminate or remediate any such release and to terminate and prevent further such releases or discharges of prohibited material into the Ditch. In that case, Developer(and his successors and assigns) shall reimburse Company for all such reasonable costs and expenses incurred or sums advanced. 6. Indemnity. Developer(or his successors and assigns)shall indemnify, defend, and hold Company and its officers, employees and agents harmless from any and all loss, liability, claims or damages arising from the discharge of any prohibited material from the Property into the Ditch by Developer(and his successors and assigns). Such indemnity shall include, but shall not be limited to all Company's losses, damages, costs, expenses, expert witness fees, and attorneys fees paid, incurred or resulting from or arising out of this Agreement or the discharge of prohibited material from the Property into the Ditch, including all costs and expenses paid or incurred to control, abate and remediate the release of prohibited material. In addition, Developer(or his successors and assigns) shall indemnify and hold Company and its officers, employees and agents harmless from any, liability, federal, state or local agency concerning the discharge of a prohibited material from the Property into the Ditch. Such indemnity shall specifically include, but not be limited to, any and all response and/or remediation costs paid or incurred by any such federal, state or local agency for which Developer or (his successors or assigns) are liable for. Company shall indemnify and hold harmless Developer or its successors and assigns, officers, agents, and employees from any and all loss, liability, federal, state or local agency arising from Ditch Company's release of water from the facilities shown in Exhibit B into the Ditch. 7. Recording. This Agreement and exhibits hereto shall be recorded at Developer's expense with the Clerk and Recorder of Weld County, Colorado,shall run with the Property, and shall be binding upon all successors in legal and equitable title to the Property and all successors and assigns of the Company. 8. Default by Developer and Remedy. A default shall be deemed to have occurred on the part of Developer(or successors) by any failure or refusal to comply with the terms and conditions of this Agreement or any other violation thereof, following thirty(30) days written notice of such violation (or such longer period as may be necessary to comply, if compliance cannot be reasonable accomplished within such 30 day period and so long as Developer(or his successors and assigns) commences compliance during the 30 day period and diligently proceeds to completion); provided, however, in the event of an emergency involving the discharge or a threatened discharge of a prohibited material from the Property into the Ditch, Company may, without having the obligation to do so, act to abate, control, remediate or prevent such release of a prohibited material into the Ditch, and any notice of default under such circumstances shall be deemed waived on the part of Developer (or successors and assigns) by any failure or refusal to pay assessments on this Drainage Certificate when due. In the event of a default, Company may, without limitation upon any other legal or equitable remedy available to it under this Agreement or otherwise, exercise any or all of the following remedies: 3 iy `a• 8.1 Terminate this Agreement and prevent any further discharge of storm water from the Property into the Ditch; 8.2 With or without terminating this Agreement, bring suit against Developer(or successors and assigns) to recover Company's damages, including interest, as a result of such default; 8.3 With or without termination of this Agreement, an action or actions for injunctive relief and/or specific performance or for any other equitable remedy allowed or provided by law; and/or 8.4 With or without termination of this Agreement, and after notice and opportunity to cure, file and record a lien against all or any part of the Property for all sums due Company, including assessments and interest. In any action brought by either party to enforce the terms and provisions of this Agreement, the prevailing party shall be entitled to recover its legal costs and expenses therefore, including attorneys' and expert witness fees. 9. Default by Company and Remedy.A default shall be deemed to have occurred by Company (or its successors) by any failure or refusal to comply with the terms and conditions of this Agreement, or any violation thereof, following thirty(30)days written notice of such violation (or such longer period as may be necessary to comply, if compliance cannot be reasonable accomplished within such thirty(30) day period and so long as Company and its successors and assigns commences compliance during the 30 day period and diligently proceeds to completion. In the event of a default, Developer or his successors or assigns may, without limitation upon any other legal or equitable remedy available to it under this Agreement or otherwise, exercise any or all of the following remedies: 9.1 Terminate this Agreement and discontinue any further discharge of storm water from the Property into the Ditch; 9.2 With or without terminating this Agreement, bring suit against Company(or its successors and assigns)to recover Developer's damages, including interest, as a result of such default; 9.3 With or without termination of this Agreement, bring an action or actions for injunctive relief and/or specific performance or for any other equitable remedy allowed or provided by law. In any action brought by either party to enforce the terms and provisions of this Agreement, the prevailing party shall be entitled to recover its legal costs and expenses therefore, including attorneys' and expert witness fees. 10. Severability of Terms. It is understood and agreed by the Parties that if any part, term or provision of this Agreement which is not material to the essence of this Agreement is held by a court or courts of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular part, term or provision held illegal or invalid. 11. Applicability of Drainage Certificate. It is understood and agreed by the parties hereto that the Discharge Certificate provided for herein shall be granted only for the facilities 4 �v r described in Exhibit B and that Developer or his assigns and successors shall be required to enter into a new Agreement and obtain a new Discharge Certificate for any other discharge facilities. The Company agrees to negotiate in good faith with Developer(and his successors and assigns)to enter into a new Agreement and issue a new Discharge Certificate in the event additional discharge facilities are required. This agreement and any discharge certificate issued pursuant to this agreement shall become null and void if the Developer or his successors or assigns gives written notice to the Company within two years of the date of this agreement that the proposed development of the Property will not occur, in which case all further rights and obligations of the parties under this agreement and the discharge certificate shall terminate. Within 30 days of receipt of the notice by the Company, the parties shall jointly execute a termination and release agreement, which agreement shall be recorded in Weld County. 12. Termination of Developer's Obligations. As used in this Paragraph 11, "Developer Termination Date" means: the date the Developer has sold or transferred all interests in the Property and transferred the Drainage Certificate to one or more successors and assigns in interest to the Property. Notwithstanding anything to the contrary set forth in this Agreement, Developer shall have no obligations under this Agreement after the Developers Termination Date. All of Developer's obligations under this Agreement shall terminate as of the termination date, provided, however, that Developer shall remain liable under this Agreement after the Developer Termination date for any event, including default, which occurred prior to the Developer Termination date, subject to applicable statutes of limitation. 13. Notice. Whenever required hereunder, written notice shall be given to the Parties at their addresses specified below, by United States certified mail, return receipt requested, and postage prepaid or by overnight delivery service. Any party may change the address to which notice is given by giving notice or a change of address in compliance with this paragraph. es- 14. Benefit. The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the Parties and their successors and assigns and legal representatives. The obligations under this Agreement shall run with the Property described in Exhibit A 15. Fees. Developer has reimbursed the Company, at or before closing, for all of the company's legal, engineering, inspection and recording and other fees incurred in connection to this Agreement in the amount of$4,691.63. (See itemized list attached hereto as Exhibit C). It is hereby agreed by the Parties that the agreement letter signed by the developer on May 15, 2005 to reimburse Ditch Company for legal, engineering and all other fees has been paid in full and that the agreement signed May 15, 2005 is now null and void, except the Developer shall pay additional fees up to$500.00 for remaining work by Ditch Company consultants on the Agreement. 16. Lien Waiver. The Company, on behalf of itself and its agents, contractors and employees who have performed work for the Company in connection with paragraph 14, of this Agreement, for value received, hereby waives all rights which may have been acquired by the Company and its agents, contractors and employees to file a lien against the Property for any work done prior to the date of this Agreement for labor, skill or material furnished to premises, legal fees, administrative cost, engineering cost and any other cost. 17. Assignment. Developer may assign his interest in this Agreement to a homeowners association and/or to the successors in interest to the Property. DATED the day and year first above written. Gbv 5 Developer: Frank E.Wright and Loretta R.Wright Address: 22 Seven Hills Drive, Boulder, CO 80302 By: ', `C`yThv Lisink� Frank E.Wright Loretta R.`VOright STATE OF COLORADO J3[nJnn AA , ) ss. COUNTY OFteLJ The foregoing instrument was acknowledged before me this /0 day of Nlotha , 200 5 , by Frank E.Wright and Loretta R. Wright. WITNESS my hand and official seal. My CommissionEpires 06/07/2009 My commission expires: Notary Public New Consolidated Lower Boulder Reservoir and Ditch Company A Colorado nonprofit Corporation 3838 Florentine Circle, Longmont, CO 80503 By:4 � Alfred Sa r, President Att-� David Yardley, Secretary / 6 Exhibit A Lot B, of Amended Recorded Exemption No. 1467-05-2AMRE 3381, recorded January 21, 2003 as Reception No. 3025375, being a part of S %of the NW Y of Section 5, Township 1 North, Range 68 West of the 6th P.M., County of Weld, State of Colorado. n vr> l l„,_ . 6 I n2 3. i / 3_ a \ as : ` x (GRAVEL ROAD) O.X \ �" R + T WELD COUNTY ROAD 3 =I8 _ WELD COUNTY ROAD 3 5005_ ril ' - '' a ,v\ a ) \ \ K\ ''9-i -&-_-_-1:------ " '- -_"-- -- /_ - - I II 1 o PENGAD800-631-6989 k \ w laMEMMIP M 31 al _-- ' ' m i Ji --' a,�.' tt' ild a=ao _ - Nz� =n agg a s0 0 o . y .___13�—- o�.' _� mac`°`'•- , NNNO 7 f : d�' 45Ds'I4lZS(Bi'(vEl.. _ _ I _. _--— ZZ S • i uit,i xAMv1[W „z;50 ;6-:�_ 0d \.';/,.'k(. 1. a 'd;m:“. l,n N .-)•Ia. 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TIN. 369W 6IH P..I. s/2 ]>mum R Ir 15 133 Meew \ TAO /5 ,U^ M / ,o wa m o.0 w I OR FILING 3/22/55 /35/95 RD O N 05 .m.LOr 3 n�L\ ACCEPTED IxDPOND RE Gills 5/0A-5 w AFIRELOT E n 3/5/93 — DESIGNED 60 :IIn' LEGEND razD BYI • 91E L, "� �-NN N\� AAA'1AA 1 APV-WC,' . w OAFRS, b ,rtm-„Ili.. I r�°I � d1'� .,.,.�, A ,..ma.-cpurCENTS J�NEI+c /F9 I• sI �L I al li lilt i. JAm I� `fir le=i ` e L'rnWll "gnUm1 Q II�n nE5nrRlrR�ti,o_,J - \\I \\6 \ rS j\11 ��\G, -� om„c nas .c „..\ o.\ EXHIBIT `t".1 i \111_ ;» ENS,. ,W. °/zsor S �, 2 3,¢.w,>,,..,�>,w.,.\., ,00unD,`5nir.", .. . �`1 roRm GRASS"""CI"'"" SWALE SECTION TYP. <\J `\ =`o, w 6"" B Ea \ s.¢ $ -y.l HEADCATE DETAIL ® ® ®-Dem�m..9 "a d Y^ REVIEWED 6y POUPENUINEERINfLI N6. A-- C__--, i FOR CONFOR`APNCE TO LOWER EOULOER DITCH REQUIREMENTS 10.26.20[5 ilVi ) ) ) • PROJECT NO. C045198 co — —05' IB.SR• —2p• c—. 1]]•_y kg B W E Al CM' S toCC E O 4DO —r 2.66• i, i TIN _I I I p_ EHRHART SIT rTP L Za] GRIFFIN & B6r I ASSOCIATES ITTL B C- I5ENC(ToTIIHEERME6 INSTALL TRASH RACK • PLANNING BOLT L 1KI 10 CONCRETE MEMBER • LANO SURVEYING WELD I 6 REMIT TO ANGLE HON PLAN VIEW I ON CENTER _a d H W TOP OF BERM C7 ELEV. - 5000.50 1 100-IR WATER SURFACED i— M E""1 ° ELEV.•500].]5 W 1/0"STEEL PLATE LBXI B.J5 AUCflI<nN Sip DIETER FpmIRY uEOAL U a M a GRATE MODEL 32]6 — ,_ p a iiHuW/IHfl fE(3)0.NN DInM HOLES U.5.ALTER 51AINLE55 STRUCTURAL STEEL CHANNEL SWIVEL HINGED -,1' O 0 C O.C.BOLT TO CHANNEL STEEL WELL-SCREEN R OCX CLOSED �y WA TER SURFACE TY 0.1]9. /156 NEC 03 VIE T OPENING SUPPORT WATER QUALITY SURFACE• _ — -rHi III PLAIE•WITH19 STEEL cc w 0 cc 0 P(A C[• �. . RDO 3"O.L.,0.]I iH CK ELEV. • 5003.50 . i OPINING IO ExPANsrom CONCRE Er Q Z F AND 1'X 0'FLAT BAR FRAME ____,,''.■■.. lill � CONTROL STRUCTURE v_ . CONTROL 5 RUCTURE. �` _ j- H Zy O ELEV. SOo3.50 ELEV. !5002.50• 7 STEEL PERFORATED — ��..I C0 FLOW CONTROL C -W w p .. = 01.5 P1510 1DPE OUTLET V Z ITT 3 J FIPE To',much, • �y O a rv�oim� WITH FEs ® SLOPE no 0 OUTLET, H K -SCREE FRAME OUTLET Z Y 1 INIEPW IiP TERV TA C EL Ni WEL OS W2Ei 0,00 =5001 30 F msTATI.MBARL =5001.5) RASH RACKCBXIO.]5 AMERICAN SID OUTLET FLOOR 100-TN ORIFICE PLATE W STRUCTURAL STEEL CHANNEL ELEV. -5001.10 24,24.A.•STEEL Q FORMED Ago SIDNCRfFL'WHOM gn'0 AmAND SIDES OF 9'WIDTH SECTION C-C SECTION A-A SECTION B-B DATE; TO/35/05 DESIGNED III C\v ODRAINAGE CONTROL STRUCTURE (DCS 1 ) ORE6gr DRAWN BY: ,r NOT TO SCALE �P ER F9FL CNEa5p Lar: EXHIBIT PSNIOuED IN PgURENGI �INa,IN . ct / '2 PoR EnNWRu,RNCE TO 'V '3 ; SHEET NO. M LOAM ELH.ILCER DRG7 FecauIRQMENYJ 9 'N L>/a zr/ar L. 1 OF 1 10.22.ws 14 -',5:S/ONAlEO Exhibit C Legal Fees Statement Date Amount 11/30/04 $117.00 5/31/05 82.00 6/30/05 62.27 7/31/05 20.50 8/31/05 184.00 9/30/05 1,318.50 10/31/05 1,049.90 11/1/05 to 11/4/05 246.00 Total Legal Fees $3,080.17 Engineering Fees 7/22/05 $760.50 9/2/05 850.96 Total Engineering Fees $1,611.46 GRAND TOTAL $4,691.63 11 2; 11111111111111111111111111111 'III 1111 11 I I 11111111111111 3305267 07/21/2005 04:35P Weld County, CO 1 of 6 R 31.00 D 0.00 Steve Moreno Clerk & Recorder MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is entered into this 22nd day of June, 2005, by and between ANADARKO LAND CORP., formerly known as Union Pacific Land Resources Corporation ("Anadarko Land"), with an address for business of Post Office Box 1330, Houston, Texas 77251-1330 and Frank Wright, an individual ("Surface Owner"), with an address of 22 Seven Hills Drive, Boulder, Colorado 80302. A. Surface Owner owns the surface estate for 74.43 acres of property located in Weld County, Colorado, in the S/2NW/4 of Section 5, Township 1 North, Range 68 West, which Surface Owner proposes to develop as a residential subdivision and which is referred to hereinafter as the "Property" and more specifically described in the attached Exhibit A. B. Anadarko Land owns all of the minerals exclusive of oil, gas and associated liquid hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and associated liquid hydrocarbons; the minerals exclusive of oil, gas and associated liquid hydrocarbons are hereinafter referred to as"Minerals." C. Anadarko Land and Surface Owner have entered into an agreement that provides for the sale by Anadarko Land to Surface Owner of certain surface rights associated with the Minerals that is entitled"Agreement Concerning Certain Mineral Rights" ("Agreement"). D. The oil, gas and associated liquid hydrocarbons that underlie the Property are not the subject of the Agreement; however, they are the subject of a separate surface use agreement among Anadarko Land, Anadarko E&P Company LP, an affiliate of Anadarko Land, and Surface Owner and others. E. The parties desire, through the execution and recording of this Memorandum, to reaffirm and give notice of the Agreement and the rights and interests created in the Agreement. NOW, THEREFORE, in consideration of the covenants and mutual promises set forth in the Agreement and this Memorandum of Agreement, including in the recitals, the parties agree as follows: 1. Anadarko Land has granted to Surface Owner the right to purchase a relinquishment and quitclaim of surface rights for the Minerals under the terms, provisions and conditions set forth in the Agreement. 2. This Memorandum is not a complete summary of the Agreement and shall not be used in interpreting the provisions of the Agreement; nor in any way or manner does it amend, modify or affect the terms, provisions, conditions and exceptions of the Agreement, and the Agreement shall govern and control in all respects, the duties, obligations, covenants, warranties and agreements of the parties. 1 EXHIBIT �i #/o74 1111111 11111 010 III 11111 IIII 111111 III 11111 IIII IIII 3305267 07/21/2005 04:35P Weld County, CO 2 of 6 R 31.00 D 0.00 Steve Moreno Clerk& Recorder 3. This Memorandum shall be recorded in the Office of the Clerk and Recorder of Weld County. 4. This Memorandum may be executed in counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have executed this instrument, to be effective on the date first above written. ANADARKO LAND CORP. By: Name: ? —4.6. s. Frank Wright, an individual Its: J:c.e— rie 2 11111111111111111111111111111 IIII 111111 III 11111 IIII 101 3305267 07/21/2005 04:35P Weld County, CO 3 of 6 R 31.00 D 0.00 Steve Moreno Clerk& Recorder 3. This Memorandum shall be recorded in the Office of the Clerk and Recorder of Weld County. 4. This Memorandum may be executed in counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have executed this instrument, to be effective on the date first above written. ANADARKO LAND CORP. C- By: If �� Name: Frank Wright, an individual Its: 2 111111 Mil 1111111 11111 1111 EMI Ill 11111 3305267 07/21/2005 04:35P Weld County, CO 4 of 6 R 31.00 0 0.00 Steve Moreno Clerk& Recorder -- ACKNOWLEDGMENTS STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The for going iyistrunientAwas acknowledged before me this 1 ' "day of lit/Li , 2005 by (t Ltq l�Pe-Ytk rS as ✓,` !' /d_Al for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: 70 1' c 0 j otary P lic '°'„3 JUDY GAYLE THAF� _ �y NOTARY PUBLIC,STATE OF TEXAS'3 ` in MY COMMISSION EXPIRES OCT. 1, 2005 STATE OF COLORADO ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2005 by Frank Wright, an individual Witness my hand and official seal. My Commission expires: Notary Public 3 I 11111111111 111111111111 21111 111111 11111111 1111 1111 3305267 07/21/2005 04:35P Weld County, CO 5 of 6 R 31.00 D 0.00 Steve Moreno CIerk& Recorder ACKNOWLEDGMENTS STATE OF TEXAS ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of 2005 by as for ANADARKO LAND CORP. Witness my hand and official seal. My Commission expires: Notary Public STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this a;<& day of 3wnffi - , 2005 by Frank Wright, an individual Witness my hand and official seal. My Commission expires: '7 -30 - CJ w�;- o�6 D s E ametx Notary Public 3 iii IIIII 1111111111%\\\\I 111111 III Ilill 11111111 I I'of i R 81.00 0 D 0.004: Steve Moreno Clerk&Recorder EXHIBIT A to Memorandum of Agreement dated , 2005 between Anadarko Land Corp. and Frank Wright Legal Description Lot B, of Amended Recorded Exemption No. 1467-05-ZAMRE 3381 recorded January 21, 2003 as Reception No. 3025375, being a part of S 1/2 of the NW 1/4 of Section 5, Township 1 North, Range 68 West of the 6th P.M., County of Weld, State of Colorado. 74.43 acres, more or less also known by street and number as Lt B, WCR 3, Erie, Colorado 80516 4 111111 11111 111111111111 X111111111 MEIN' 3322566 09/13/2005 04:13P Weld County, CO 1 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder .b6� SURFACE USE AGREEMENT THIS SURFACE USE AGREEMENT ("Agreement") is made and entered into this 15th day of August, 2005, by and among ANADARKO E&P COMPANY LP ("Anadarko E&P"), formerly known as Union Pacific Resources Company, and ANADARKO LAND CORP. ("Anadarko Land"), formerly known as Union Pacific Land Resources Corporation (together the "Anadarko Entities"), both with an address of Post Office Box 1330, Houston, Texas 77251-1330; ENCANA OIL & GAS (USA) INC. ("EnCana") with an address of 370 Seventeenth Street, Suite 1700, Denver, Colorado 80202; KERR-McGEE ROCKY MOUNTAIN CORPORATION ("Kerr-McGee") with an address of 1999 Broadway, Suite 3600, Denver, Colorado 80202 (the Anadarko Entities, EnCana and Kerr-McGee are sometimes referred to hereinafter together as the "Oil Companies") and FRANK WRIGHT ("Surface Owner"), an individual, with an address of 22 Seven Hills Drive, Boulder, Colorado 80302 A. Surface Owner owns the surface estate for 74.43 acres of property located in Weld County, Colorado, in the S/2NW/4 of Section 5, Township 1 North, Range 68 West, which is hereinafter referred to as the "Property" and more specifically described in Exhibit 1. B. Surface Owner proposes to develop the surface estate as a residential subdivision. C. The Anadarko Entities own all of the minerals that underlie the Property. D. Anadarko Land owns all of the minerals other than the oil, gas and associated liquid hydrocarbons that underlie the Property, as well as a reversionary interest in the oil, gas and associated liquid hydrocarbons, and Anadarko E&P and Anadarko Land together own all of the oil, gas and associated liquid hydrocarbons. E. Anadarko E&P or a predecessor company has granted an oil and gas lease for the Property, interests in which have been assigned to EnCana; EnCana operates two producing oil and gas wells on or adjacent to the Property which are generally located in the SE/4NW/4 and identified as the Brown 22-5 and in the SW/4NW/4 and identified as the Brown 5-5 (together the "Existing Wells"). F. EnCana and Surface Owner have entered into a surface damages agreement that applies to the SE/4NW/4 of Section 5 and is dated October 2, 2003 ("EnCana Agreement"), and, with respect to the agreements in this Agreement as between EnCana and Surface Owner only, this Agreement supplements the EnCana Agreement and supercedes it to the extent that it conflicts with the EnCana Agreement and covers additional matters and additional or other lands. G. Anadarko E&P or a predecessor company has granted other oil and gas leasehold interests in the Property, interests in which has been assigned to Kerr-McGee. H. This Agreement provides for and is limited to the compatible development of the surface estate and the oil and gas estate for the Property; it does not in any respect apply to EXHIBIT 'P₹ #/D74 111111111111111111111 111 III 1111111 III IIIII 1111 IIII 3322566 09/13/2005 04:13P Weld County, CO 2 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder the minerals other than the oil, gas and associated liquid hydrocarbons that are owned by Anadarko Land and which are the subject of a separate agreement between Surface Owner and Anadarko Land. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the parties agree as follows: 1. Oil and Gas Operations Areas. a. The Oil Companies shall drill and operate oil and/or gas wells and locate future oil and/or gas wells only in the three areas depicted on Exhibits 2A, 2B and 3 as the Oil and Gas Operations Areas which include the locations for the two Existing Wells and an area that is generally in the center of the quarter section. Uses within the Oil and Gas Operations Areas include, but are not limited to, drilling, completion, and maintenance of wells and equipment, production operations, workovers, well recompletions and deepenings, fracturing, twinning, the drilling of replacement wells and the location of associated oil and gas production and drilling equipment and facilities and also the location and drilling of oil and gas wells that are directionally or horizontally drilled to bottomhole locations either within or outside the Property. b. The Oil and Gas Operations Areas for the Existing Well in the SW/4NW/4 and for the future well location in the center of the quarter section are located only in part on the Property. Surface Owner understands and acknowledges that the Oil Companies have entered into a Surface Use Agreement with Highland Acquisition Group, L.L.C. ("Highland") dated August 31, 2004 and recorded in the Weld County Clerk and Recorder's Office on September 27, 2004 ("Highland SUA") which applies to the lands in the N/2NW/4 of Section 5, Township 1 North, Range 68 West adjacent to the Property and which does not provide for a future well location in the center of the NW/4. Surface Owner shall obtain the signature of the appropriate representative for Highland or its successor to an amendment to the Highland SUA in which Highland consents to the location of a future well site in the center of the quarter section as depicted on Exhibits 2A, 2B and 3 in the form of amendment attached to this Agreement as Exhibit 4. c. The Oil and Gas Operations Areas shall include the geographic areas and dimensions that are depicted on Exhibits 2A, 2B and 3, including the additional no-build zone, for particular Oil and Gas Operations Areas as depicted on the Exhibits. d. The Oil Companies shall continue to have the right to drill more than one well with attendant facilities within each of the Oil and Gas Operations Areas and to deepen, recomplete or twin any well that is drilled, as well as to drill directional and horizontal wells that produce from and drain the Property or lands other than the Property. e. The Oil Companies shall locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities only within the Oil and Gas Operations Areas. 2 111111111111 IIIII 111111 OBI III IIIIII1 III 11111 IIII IIII 3322566 09/13/2005 04;13P Weld County, CO 3 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder f. Except as otherwise depicted on Exhibits 2A, 2B and 3, Surface Owner shall not plat any surface property line within the Oil and Gas Operations Areas. No temporary or permanent building, structure, or other improvement shall be constructed or installed by Surface Owner within the Oil and Gas Operations Areas. The Oil and Gas Operations Areas shall be for the exclusive use of oil and gas drilling and production operations. g. Except for the pipeline and flowline easements, access and the Oil and Gas Operations Areas identified in this Agreement, the Oil Companies shall not use the surface of the Property except in cases of emergencies. 2. Access to the Oil and Gas Operations Areas. a. Access to each of the Oil and Gas Operations Areas shall be along the routes depicted on Exhibit 2A. b. Access to an Oil and Gas Operations Area may be changed by mutual agreement of Surface Owner and the operator(s) of the well(s) for which the access is used; provided however, all costs and expenses of such relocations shall be borne by the party which requests the relocation. c. Surface Owner shall keep the portions of any access roads jointly used by both Surface Owner and its subdivision occupants and the Oil Companies in good condition and repair until such roads are dedicated to the local jurisdiction; provided, however, if one of the Oil Companies causes damage to a portion of a road that is jointly used by both the Oil Companies and Surface Owner or its subdivision occupants, the Oil Companies agree to promptly repair any damage which they cause which is a direct result of their use of the road. d. No party shall unreasonably interfere with the use by the other of an access road. e. Access roads or portions of access roads that are used exclusively by the Oil Companies shall be approximately thirty (30) feet in width, and the Oil Companies shall install and maintain them to those state and local standards that apply to oil and gas operations. 3. Pipelines, Flowlines and Pipeline Easements. a. Pipeline easements shall be at the locations identified on Exhibit 2A, and pipelines shall be installed at depths of approximately forty-eight (48) inches below the surface of the ground. b. Locations of pipelines and pipeline easements may be changed by mutual agreement of the applicable parties; provided, however, all costs and expenses of such relocations shall be borne by the party which requests the relocation. In the event that Surface Owner requests the relocation of a pipeline or flowline, the applicable oil company shall provide Surface Owner with a written estimate of the relocation costs which Surface Owner 3 111111 11111 11111 111111111111II11111111 I I 11111 1111III 3322566 09/13/2005 04:13P Weld County, CO 4 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder shall thereafter promptly remit to the oil company. The payment shall be adjusted up or down upon completion of the work and after an itemized statement is provided to Surface Owner. The Oil Companies shall use their contractor of choice. Surface Owner shall, in addition, pay EnCana all costs and expenses that EnCana incurs to encase its pipelines and flowlines to the extent that such pipelines and flowlines underlie a road either in advance of or at the time that Surface Owner commences construction of such road, at the place where the EnCana pipelines and flowlines intersect with the road. c. Pipeline easements shall be fifty (50) feet in width during construction activities and thirty (30) feet in width for all operations, maintenance and transportation activities. Flowline easements shall be thirty (30) feet in width for all operations. EnCana is currently the grantee or assignee of the grantee of that certain recorded easement dated August 9, 1995 and recorded on December 15, 1995 in the Weld County Clerk and Recorder's Office in Book 1522, Page 743, at Reception No. 2467785 that crosses the Property. d. Surface Owner shall be entitled to reserve the right to cross the pipeline easements at approximately right angles, and Surface Owner shall also have the right to install and maintain access to such easements for utility lines, including those for water, gas, sewer, electric, telephone, cable, television and fiber optic and other pipelines that travel along, but not within, the pipeline easements provided for herein; provided, however; i) any new underground facilities which travel along a pipeline easement identified herein shall be located a distance horizontally of at least ten (10) feet from parallel existing pipelines; ii) any new underground facilities shall have at least twenty-four (24) inches of vertical clearance between such new facility and a pipeline provided for herein; and iii) any overhead power lines shall be at least twenty(20) feet above the ground. e. Surface Owner shall grant the pipeline easements (for production from the Property and/or other lands) to the applicable oil and gas interest owners at the time the Oil Companies request them and at no cost to them. f Surface Owner shall maintain a minimum ground cover of 36 inches and not more than 72 inches over pipelines and flowlines in the conduct of his operations and his construction activities on the Property. 4. Subdivision Plat. Surface Owner shall identify the Oil and Gas Operations Areas and all access and pipeline easements on his subdivision plats and in all applications for development that he files with a local jurisdiction, and the plats shall include restrictions that no property lines, and no temporary or permanent buildings, structures, or other improvements shall be located, constructed or installed within the Oil and Gas Operations Areas. Surface Owner shall record the subdivision plat in the Office of the Clerk and Recorder of Weld County and provide written evidence to the Oil Companies within fifteen (15) days of recording. 5. Waiver of Surface Dama2e Payments. Surface Owner hereby waives all surface damage payments pursuant to any present or future Colorado Oil and Gas Conservation 4 1111111 11111 lit 11111111111111 1111111111 11111 IIII III 3322566 09/13/2005 04:13P Weld County, CO 5 of 26 R 131.00 0 0.00 Steve Moreno Clerk& Recorder Commission ("COGCC") rule or regulation or local regulation, state statute, common law or prior agreement for each and every well and related wellsite that is drilled within an Oil and Gas Operations Area and for each production facility and access and pipeline easement. The Oil Companies or their lessees or their assignees may provide a copy of this Agreement to the COGCC or to any local jurisdiction, person or entity or any court of law as evidence of this waiver. 6. Waiver of Setbacks and Other Requirements. Surface Owner understands and acknowledges that the COGCC has rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. Surface Owner hereby waives all setback requirements in COGCC Rule 603, or any successor rule or amendment to the COGCC setback rules, and to any other state or local setback requirements, or other requirements or regulations, that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of the Oil Companies or their lessees and assignees to explore for and produce the oil and gas in accordance with this Agreement. Surface Owner understands, and shall notify parties who purchase all or portions of the Property from Surface Owner, that the Oil Companies may cite the waiver in this section 6 in order to obtain a location requirement exception or variance under COGCC rules or from a local jurisdiction. 7. Governmental Proceedings. a. Surface Owner Will Not Object. Surface Owner agrees that he will not object in any forum to the use by the Oil Companies of the surface of the Property consistent with this Agreement and hereby waives any such right to object. Surface Owner further agrees that he will provide such other written approvals and waivers which are reasonably requested by the Oil Companies and consistent with this Agreement, including, but not limited to, all approvals and waivers to drill a well or to conduct oil and gas operations on the Property because of any law or regulation, including any local ordinance and regulations of the COGCC, and including, for example, waivers to state and local setback requirements and to any setback requirements from a surface property line or for an exception location. b. Oil Companies Will Not Object. The Oil Companies agree that they will not object in any forum to a request by Surface Owner to annex, zone, rezone, plat or replat all or any portion of the Property to the extent such request is consistent with this Agreement. 8. Notices of Hearings. Surface Owner shall provide the Oil Companies with written notice not less than thirty (30) days before each hearing for consideration of a plat application or other land use application for the Property or portions of the Property that is to be held before the County or other local jurisdiction. 9. Notice to Homeowners and Builders. Surface Owner shall furnish all builders and developers which purchase all or any portion of the Property and each person or entity who proposes to enter into a contract to purchase a lot which is adjacent to, or any part of which is within 350 feet from an Oil and Gas Operations Area or a pipeline easement, with a plat that shows the locations of the Oil and Gas Operations Areas, access routes, and pipeline 5 1111111 11111 11111 111111111111 III 1111111 III 11111 EMI 3322566 09/13/2005 04:13P Weld County, CO 6 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder easements. In addition, Surface Owner shall provide written notice to all such purchasers that includes the following: a. they are not purchasing and will not own any rights in the oil, gas and mineral estate in and to the Property; b. there may be ongoing oil and gas operations and production on the surface of the Property within the Oil and Gas Operations Areas, pipeline easements and access routes; c. there are likely to be wells drilled and oil and gas production facilities constructed and installed within the Oil and Gas Operations Areas and flowlines and pipelines constructed and maintained on the Property; d. heavy equipment will be used by the Oil Companies from time to time for oil and gas drilling and production operations and such operations may be conducted on a 24-hour basis; and e. homeowner associations and buyers of individual lots or homes will be subject to ancl burdened by all of the covenants and waivers made by Surface Owner in this Agreement, including, but not limited to those covenants and waivers; i) prohibiting the location of any building, structure, or other improvement within the Oil and Gas Operations Areas; ii) waiving objections to the drilling of wells, the construction of facilities, and the conduct of oil and gas operations on the Property consistent with this Agreement; and iii) waiving objections to the setback requirements under the rules of the COGCC or any local jurisdiction. 10. Notice of Oil and Gas Operations. The Oil Companies shall provide Surface Owner with notice of drilling operations and subsequent well operations in accordance with COGCC rules and regulations. 11. Impact Mitigation. a. Oil Company Mitigation. The Oil Companies agree that they shall install and maintain at their sole cost and expense such fences, gates and locks around the wells and production facilities as are required by the COGCC. Surface Owner may upgrade fences, gates and locks at his expense and with the consent of the Oil Companies, such consent not to be unreasonably withheld, and provided that such fences, gates and locks comply with COGCC and local regulations. b. Surface Owner Mitigation. Except as provided in section 11.a., Surface Owner shall bear all costs and expense to install such noise and visual impact mitigation measures he desires or the County or other local jurisdiction requires at or around the Oil and Gas Operations Areas which are in excess of or in addition to those measures which are required by COGCC regulations for areas which are not high density; provided, however, the operator of the well at the particular Oil and Gas Operations Area shall have reasonable discretion to 6 III 11111 11111111111111 Iiii 3322566 09/13/2005 04:13P Weld County, CO 7 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder veto or protest the types and locations of impact mitigation measures in order to allow for safe oil and gas operations. 12. Individual Liability of Oil Companies. Nothing in this Agreement is intended to create a cause of action by any oil company against any other oil company or to enlarge or diminish any right or interest created by any lease or assignment of lease between or among the Anadarko Entities and any other oil company, including any lessee, farmoutee, or assignee of either of them. The liability of the oil companies to perform any obligation or comply with any covenant hereunder or to comply with any state or local rule or regulation is individual and not joint or collective. This Agreement does not create a joint venture or partnership between or among any of the oil companies which now have or which may in the future own oil and gas interests in the Property. The Anadarko entities shall in no event be liable for the acts or omissions of their lessees, assignees of lessees, or the contractors or subcontractors of any of them. 13. Authority to Execute Agreement. Each party represents that he/it has the full right and authority to enter into this Agreement with respect to the surface rights or oil and gas interests or oil and gas leasehold interests that he/it owns in the Property, as applicable. 14. No Waiver of Rights. The Oil Companies do not waive the rights they have pursuant to their respective oil and gas interests to explore for, drill and produce the oil and gas for the Property or for ingress and egress to the Oil and Gas Operations Areas, except as specifically provided in this Agreement. 15. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the personal representatives, heirs, successors and assigns of all of the parties, and the benefits of this Agreement shall inure to their personal representatives, heirs, successors and assigns. This Agreement and all of the covenants in it shall be covenants running with the land. 16. Recording. The Oil Companies shall record this Agreement with the Clerk and Recorder of Weld County and provide evidence to Surface Owner of the recording. 17. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado without reference to its conflicts of laws provisions. 18. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 7 1111111111111111111111111111III1111111 11111111 1111 3322566 09/13/2005 04:13P Weld County, CO 8 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder 19. Notices. Any notice or other communication required or permitted under this Agreement shall be given in writing either by; i) personal delivery; ii) expedited delivery service with proof of delivery; iii) United States mail, postage prepaid, and registered or certified mail with return receipt requested; or iv) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Anadarko E&P and: Anadarko E&P Company LP Anadarko Land Attention: Land Manager—Western Region/CBM Post Office Box 1330 Houston, Texas 77251-1330 EnCana: EnCana Oil & Gas (USA) Inc. Attention: DJ Land Department 370 17th Street, Suite 1700 Denver, Colorado 80202 Kerr-McGee Kerr-McGee Rocky Mountain Corporation 1999 Broadway, Suite 3600 Denver, Colorado 80202 Surface Owner: Frank Wright 22 Seven Hills Drive Boulder, Colorado 80302 Notices shall be effective upon receipt and any party may change an address by notice to the other parties. 20. Incorporation of Exhibits. Exhibits 1, 2A, 2B, 3 and 4 are incorporated into this Agreement by this reference. 21. Entire Agreement. This Agreement sets forth the entire understanding among the parties with regard to the subject matter herein and supersedes any previous communications, representations or agreements, whether oral or written; provided, however, that this Agreement supercedes the EnCana Agreement described in Recital F to the extent set forth in Recital F. No change of any of the terms or conditions herein shall be valid or binding on any party unless in writing and signed by an authorized representative of each party. 22. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original. 8 11111 1111 11111111111 I I 11111111 I I 11111111111111 3322566 09/13/2005 04:13P Weld County, CD 9 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative, to be effective on the date and year first above written. ENCANA OIL & GAS (USA) INC. ANADARKO E&P COMPANY LP By: By: r Name: Name: mes ewcomD Its: Its: gen an Attorney-in-Fact KERR-McGEE ROCKY MOUNTAIN ANADARKO LAND CORP. CORPORATION By: By: a^ — Name: Name: James L. Nowc„mo Its: Its: Agent and Attomoy in Fact FRANK WRIGHT, an individual r. • 9 I3322566 09/13/2005 11111111111IIIII FIN 111111 III 1111111 III Ililll III 1111 P 10 of 26 R 131.00 D 0.00 S evedMoeno Clerk& Recorder IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative, to be effective on the date and year first above written. ENCANA OIL & GAS (USA) INC. ANADARKO E&P COMPANY LP By: fl _ By: Name: Name: �( � Name: Its: Its: KERR-McGEE ROCKY MOUNTAIN ANADARKO LAND CORP. CORPORATION By: By: Name: Name: Its: Its: FRANK WRIGHT, an individual 9 11111 11111 11111 1111111U III 1111111 III 111111111111 3322566 09/13/2005 04:13P Weld County, CO 11 of 26 R 131.00 0 0.00 Steve Moreno Clerk & Recorder IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative, to be effective on the date and year first above written. ENCANA OIL & GAS (USA) INC. ANADARKO E&P COMPANY LP By: By: Name: Name: Its: Its: KERR-McGEE ROCKY MOUNTAIN ANADARKO LAND CORP. CORPORATION By: By: Name: Name: Its: 113.2- Its: FRANK WRIGHT, an individual 9 111111111111 11111 111111111111 III IIIIIII III HIIII III R 3322566 09/13/2005 04:13P Weld County, CO 12 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder , IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative, to be effective on the date and year first above written. ENCANA OIL & GAS (USA) INC. ANADARKO E&P COMPANY LP By: By: Name: Name: Its: Its: KERR-McGEE ROCKY MOUNTAIN ANADARKO LAND CORP. CORPORATION By: By: Name: Name: Its: Its: 1\0",/i4,_ m M0� .. FRANK WRIGHT, individual 9 1111111111111111111111111111111111111111111111111111111 3322566 09/13/2005 04:13P Weld County, CO 13 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder ACKNOWLEDGMENTS STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this_ /7 day of 6i�fe,tnhw _ 2005, by Some5 L fl rkuromh , as - =F s for ANADARKO E&P COMPANY LP. My Commission expires: Tanuon1 ',fib . Witness my hand and official seal. .x •,. ANGELA;;�^. " ,� A9�.LA MICHELLE CIL9REtiTFI I; k:�' ! MV COMtd IS5iOPi EXPIFcS ,!' :e: fig`§ L l, ( '::;'nos�+' eawarY➢.2005 Jy m,�NotaryAria blic STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this '7 day of 5,Orr:11r , 2005, by ,T/YIES L/2&. womb , as tt1a ��i i/1 for ANADARKO LAND CORP. My Commission expires: CFinuprt1 1,02D00 Witness my hand and official seal. AiCELA E /(� \ p �'CYI?.�. ) ill t 1 Not P tit to I Iillll ILIUM 1111111 HMI III la 3322566 09/13/2005 04:13P Weld County, CO 14 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder STATE OF COLORADO ) ) ss. The foregoing instrument was acknowle ed before me this;/� day of l/sF , 2005, by AN t /C6,/�as rHp� iR Fo( e for ENC A OIL & GAS (USA) INC. ission expires: &jac ' ,72OOC • •b r, • ` ' Witnes my hand and official seal. I o r ¢ J .741 n 1• •- D h Notary Public STATE OF COLORADO ) ) ss. County of The foregoing instrument was acknowledged before me this_ day of , 2005, by as for KERR-McGEE ROCKY MOUNTAIN CORPORATION. My Commission expires: • Witness my hand and official seal. Notary Public ii 1111 11111 IIIII 111111111111111 1111111111 111111 Mill 3322566 09/13/2005 04:13P Weld County, CO 15 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder STATE OF COLORADO ) ) ss. County of ) The foregoing instrument was acknowledged before me this_ day of , 2005, by as for ENCANA OIL & GAS (USA) INC. My Commission expires: • Witness my hand and official seal. Notary Public STATE OF COLORADO ) ) ss. County of nVCC ) The foregoing instrument was acknowledged before me this_ 4-k day of ello rif-¢_vn b2c- 3 2005, by S Glrvv es S , Lti son as R+-to`nay- ‘'n - �ac� for KERR-McGEE ROCKY MOUNTAIN CORPORATION. My fission expires: to I a I p� it ` b__, iWitness my hand and official seal. ' o % C>,41 Y Notary Public 11 AEI 1111111111111111111111 III 1111111 III 111111 III IIII 3322566 09/13/2005 04:13P Weld County, CO 16 of 26 R 131.00 D 0.00 Steve Moreno Clerk & Recorder STATE OF COLORADO ) ) ss. County of (-BOA]djx ) I The foregoing instrument was acknowledged before me this a2 day of , 2005, by FRANK WRIGHT, an individual. mmission expires: / OI aO© S `�0 1.F.4y S Witness my hand and official seal. �syr A At;y -1t(iLL1?j Notary Public a t F OF CO 40,./„/ .4'14+1:tb"a 12 11111111111 IIIII 111111111111 III 1111111 III BEI RIB 3322566 09/13/2005 04:13P Weld County, CD 17 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT 1 to Surface Use Agreement dated August 15, 2005 between and among Anadarko E&P Company LP, Anadarko Land Corp. EnCana Oil & Gas (USA) Inc., Kerr-McGee Rocky Mountain Corporation and Frank Wright, an individual Legal Description Lot B, of Amended Recorded Exemption No. 1467-05-ZAMRE 3381, recorded January 21, 2003 at Reception No. 3025375, being a part of the S/2 of the NW/4 of Section 5, Township 1 North, Range 68 West of the 6`h P.M., County of Weld, State of Colorado Also known by street number as Lot B,WCR 3, Erie, Colorado 80516 11111111111111111111111111111 III 1111111 III 111111 III III' 3322566 09/13/2005 04:13P Weld County, CO 18 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recc OIL AND GAS OPERATIONS AREAS EXHIBITS to Surface Use Agreement dated August 15, 2005 between and among Anadarko E&P Company LP, Anadarko Land Corp. EnCana Oil & Gas (USA) Inc., Kerr-McGee Rocky Mountain Corporation and Frank Wright, an individual See attached: Exhibit 2A, General overview of oil/gas wells... Exhibit 2B, Close up of Exhibit 2A... Exhibit 3, Revised lot line location... 11111111111111111111111111111I111111111III "III IIt 1111.. ME 1 LOT., 3322566 09/13/2005 04:13P Weld County, CO EXHIBIT 2A 19 o1 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder .,Ti LATE ' // General overview of oil/gas wells on or partially on LOT B AMRE- 3381 and the proposed well between Lot B AMRE-3381DM AMMO and Lot S RE-3105 IB°1"'wr",.�m OT. ✓ NO SCALE DATE: 8/01/2005 e < to,. f F _ — _A PARCEL OF LAND SITUATED IN ✓ N.- THE S 1/2 OF THE.NW 1/4_ - " r S5-T1N-R68W CCOUNtY OF OLORADO.WELD; "" °' �� ...�a..w OG.: �a r E"BY,.,oA..MNE� b / / FX r¢�new rota \ \ E/.aExEX*/ / nese I I -Y � IV On ff _ ".w Ynrmm el •r •r. PROPOSE.,30e GAM ¢1 \ „EEEEA3�EMEXT and sews./ PROPOSEOlew EASEMENT E?Y it N lu.SdNwN.".w.wl /1 FOEAccueXow. �1 NOM 30 // Pert:Me 113! pSO" EOXE. — — N.O.NV EASEMEXT IwirvN["Yo rurv** E LOT. � zSElln a!li r OT AEI I VIA 3 � ,° se, non 3, \ �. LOTS .L�1 'I M. On'HELL \ e1A _ — \ ✓ -\ .� / / r F , r I QL WELL 120 TM \ \ tw I my�3B m. L ( C @ NOM A \ \ 'TOWN.a.3 / W NO WILD /��'r ,g5 200E \� \� —.OLnu/"°"' // ; yy -T BE wrS.Y, Sf + fE L ill 1 t 9 30'WIDE EASEMENT. 12'WIDE ROAD(60.0000 ROAD BASE MIN.)ACCESS • ROAD FOR OIL/GAS CO..SECONDARY ACCESS FOR FIRE DEPARTMENT AND ACCESS TO OPEN SPACE TO THE EAST.MAINTAIN BY OIL/GAS.THE HOA TO MAINTAIN PORTION TO WCR 3 IF ACCESS BY OIL CO.WERE TO BE ABANDONED.AN EMERGENCY BREAK AWAY GATE TO LIMIT ACCESS TO ROAD ouoni co"L�z[Bioe SUBDIVISION TO EMERGENCY VECHICLES ONLY WILL BE INSTALLED ON THE M"'"*"mzo BY oiw".co. NOTH/SOUTH PORTION OF ROAD.INCLUDED WILL BE SIGNAGE STATING FOR ' .. - EMERGENCY USE ONLY.EASEMENT FOR UTILITIES ALLOWED. e \ 11111111111111111111111111111III1111111 ill Ill[. VIII! LUIU �; ) Q°� 3322565 09/13/2005 04:13P Weld County, CO LOT 5 / At 20 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder POINT OF �, °a J COMMENCEMENT _ OPERATIONS` /�� LOTH CENTER N 1/16 CORNER / 150' R �— AREA I/ " RE-3105 SECTION 5, TIN, R6BYF / and Center of ( EXISTING GAS LINE FND 2-1/2" ALUM. / / proposed 150• R ,/ EASEMENT CAP, LS 25937 PER ' I new gas well 1/ MON. RECORD ACCEPTED I / FRO FILING 12/B/93 / lriE I I - Seed 4i46^71 I��//� gj^ N88d45'46'E \ 2 t OPERATIONS --- 72, r AREA 1 PROPOSED 30'w GAS FLO)^e/ /J .C1 LINE EASEMENT and contin don ✓/, PROPOSED 30'w EASEMENT a� of road access. / GD-0^ FOR ACCESS ROAD E4o (Cross Hatched area only) // fr... R3 • NOTE: 50' ` IE ' NOTE: THIS EXHIBIT DOES O Z NO BUILD ✓//�J� OT REPRESENTA E' ZONE. - - - /V: R.O.W.R.OWECP. NO.EASEMENT24 MONUMENTED SURVEY. 0p'. BOOK 1522 2600 LOT 9 ,;(4__________-- OP EXHIBIT 2B og gag 4 °o �s'^ � Close up of Exhibit • Q vie: r 2A and the proposed 4, ,,,,/, AMR E-3381 1nand Lo t B p LOT 8 , tie Lot B RE-3105 fit° // • M ✓/ / r SCALE 1" = 150' OIL, GA wEu Izo A PARCEL OF LAND RADIUS I I I SITUATED IN THE S 1/2 I LOT7 I I igt I OF THE NW 1/4 250-o" S5 - T1 N - R68W ik_T/1\ 150' li / PROPOSED 30' NOTE: 50' I I BROWN 22-3 / / ACCESS ROAD W=� COUNTY OF WELD, / EASEMENT, ACCESS o COLORADO ZONENO . OPERATIONS / / ROAD FORM THIS G AREA WELL HEAD SOUTH 0 <0; � _l •' TO E%ISIHG ROAD TO O,W ;u // BE MOVED HERE s nvno[ueO.EM Iiwrol For.D11eA�Eoes uet Mx 1cauLnor,o ran onwe ` = DATE: 8/01/2005 CO ECOHOAR]AZCEOIORNREDEFMIMINrWNAOcEb OOEMVIOE IO ME •,-, _ 888 tl UST'MVNUM RY GRIME.11a HCA tO MVNMMMRrp,50 MCA]N ACCESS SVGA_CO — r-2HERE iO E!AMNOONEO.Ni EMCAO[NCY CRGXRYMY MiE rU IIMr.1CCESS rO — ' 1{1 , �u OEMEROEHCYVCCN,REOM�WM1EEETS'ItlOONTRMOLWRWM — — SM1- 1111111111111111111111I1111I1III1111111III1111111 :_ X11 . . 3322566 09/13/2003 04:13P Weld County, CO to IBIT 3 • REVISED LOT LINE LOCATION to exhibit how lot lines are ploted around the operations areas and location of access road running north and south through the east open space.The calls are / ' IL - • subject to change to match depiction of lot lines. - -Ro K. �-- xO ewLO AREPA1X)Ns ` General overview of oll/gas wells on or partially Ott f ;NN.RET0M0R0N•FD[ ZONE / aic.a AREA -\\` LOT B AMRE-3381 and the proposed well EASEMENTOAS w"` between Lot B AMRE-3381 and Lot B RE-3105 rE'"^"1"N^t°eG«Ltn°M / 11NDT /ISO NI,I".YftUTILITYE« UNCHANGED. .DS HmmAxo MnTo I ']!?L}p 1 _ 1i raRNlt.or:.. 1- f I L—,,;„ seed75'1e w-- saedliew DATE: 8/01/2005 ■W - Sae 7 NO SCALE __, LILYOSEMENT VLon tCf I fWMM NIARREYµtrt I I E_ wNE EASEMENT JI MOPO]EOAEADEMEM 9 Mal lMlu ZTiEwW \ 11 E_ E ` VATS— ' rIAL FOR ACCESS POOR by EC A PARCEL OF LAND SITUATED IN THE ``--_E ORxR.TRxx. I x yak S 1/2 NW 1/4 __RD_E_E I .l EpinviEo°GEa NOT D r REPRESENTA OF PO.W,rzw MwNMENTEO SS-TIN-RBBW COLOCOURADO DO 1NECD, ^^0D.e REDf.No ]«T« ,DR.E (Sig SOON ISM tort.MNRN1.n -- L=� «^ ttl. . / 1 ___ 13 / L 1 y I I trEME - - OIL OAS WELL \ L'L� E N ti • � =Art __L--1-__ ¢¢ >1 1 2'y ^"'are a •'°'E: :. _-.__�'___ IB IMO ewLo ZONE 1 rRoxN,a / u ® • _ - - J \ CAI BOA ii.:,.;____I / M�RATIMT\ 3 t°RIB' 2 , ` T / OIL SN NE L `RAD J1/�1 \ tr _ - eRlcRr-or-wRY i-_ ' p F" • Ia L_-B— 1 SR.wrJoa/ if ope4�S ENTRY ixiwral ` _ .> / jIiriMr -N _ 1 v__ -7-_ _ L:L ` .`EL \ _ yq III111��Fentont ___ .�eM to 43/4 NOR:eJ FCe {Er� RE rMxLnwn xoE \ SNORT.In T // FRCNEOeinfelt al• PI ` BEST`________- il :-___ __REd'9_A __, f I zaNE. \A / oMPEMTONe_// .+i Rowlo.f.4.4.-7rB.e G uow oveo�pErRE- e. - E 1 - ' Era RPOE _ .._ ! ₹r I uts.I•A TURNOUT 1 _ AyA0- - ' LL �.Ie L. J L e B INDIVIDUAL MNLeORB B.IS CONCRETE PAO t �_A EPIRNVM Di STREET LIMIT ' la) Lp,A --Lig� ,2 ysp r�r' _ R�_' BA4EEA 17:77P91:- ByB� c! N•9Ij n- 33 Ltd m 1-- . I f'., y1 OPEN SPACE LI m a I ACRES even BO ppG� I DE 11 ACRES DRAINAGE 7 NBd kB ______ a .b ---- efdkt4 -- --- 1 DErexnoxMEN - Cd d ___ �l kw EASEMENT Ir MOE ROAD I ALGA ROAD BASE 1�� g1 y NIAccE]sRwOkoRaVDAS CO eEl.•dIDMrICtu, �vBBy CS FOR FIRE DEPARTMENT ANO ACCESS YO OPEN SPACE TO THE EAST.MAINTNXED aY pVON CO.MW TO MAINTAIN I x PORTION Of ROM THAT RUN,NORTH Off THE NEST/EAST 4;«B L b. S•y1-1 POAD MDIMO,UBgNEipIMOPg1N1XTO NCP]IF A QA IroO _ —Accaas eroRco.HERE To eaAwDw. M •Rry tl,,"E fr MIN OPEN EDACE wg p EMERGENCY ERECKAwLY DATE TO WAND ACCESS TO 4ry Q I Z •"'v SUBDIVISION TO EMERGENCY VECNICLETN MLL SE _ '7 ___ 40,0])]]]0 FT.110 ACRES Sy' I INSTALLED ONML THE MORTW]OVMPORTION Of ROAD. I eq_1 AND UTILITY INCLUDED MLL SE NT FOR STATNO FOR EMERGENCY L_�I 1:::1 J r USE ONLY.EASEMENT FOR UTILITIES NAMED. L E !_ E / I 3 Y 'BYYL. ^B 1r LM`E rwE [LOAD Oran SPACE NOB IE R� FRta E�OY Ltii E lw7o ACRES AND AVM wF EHT FOR HIV 1111111(11111111111111 III 1111111 III 1111111111111 3322566 09/13/2005 04:13P Weld County, CO 22 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT 4 to Surface Use Agreement dated August 15, 2005 between and among Anadarko E&P Company LP, Anadarko Land Corp. EnCana Oil & Gas (USA) Inc., Kerr-McGee Rocky Mountain Corporation and Frank Wright, an individual See attached Amendment to Surface Use Agreement between Anadarko E&P Company LP, Anadarko Land Corp., EnCana Oil & Gas (USA) Inc. and Highland Acquisition Group, L.L.C. 1111111111111111111111111111111111111111111111111111111 3322566 09/13/2005 04:13P Weld County, CO 23 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder. AMENDMENT TO SURFACE USE AGREEMENT THIS AMENDMENT TO SURFACE USE AGREEMENT ("Amendment") is made and entered into this day of , 2005, among ANADARKO E&P COMPANY LP, formerly known as Union Pacific Resources Company, and ANADARKO LAND CORP., formerly known as Union Pacific Land Resources Corporation, (together the "Anadarko entities"), both with an address for business of Post Office Box 1330, Houston, Texas 77251-1330; ENCANA OIL & GAS (USA) INC. ("EnCana") with an address of 370 Seventeenth Street, Suite 1700, Denver, Colorado 80202 (the Anadarko Entities and EnCana are sometimes referred to hereinafter together as the "Oil Companies") and HIGHLAND ACQUISITION GROUP, L.L.C. ("Highland") with an address of 6297 South Potomac Way, Centennial, Colorado 80111. RECITALS A. The Oil Companies and Highland entered into that certain Surface Use Agreement dated August 31, 2004 and recorded in the Weld County Clerk and Recorder's Office on September 27, 2004 ("Agreement") covering approximately 54 acres of property located in Weld County, Colorado, in the N/2NW/4 of Section 5, Township 1 North, Range 68 West("Property"). B. A copy of the Agreement is attached to this Amendment as Exhibit 1. C. The parties in the Agreement identified two Oil and Gas Operations Areas where oil and gas operations will take place on the Property. D. The Oil Companies intend to enter into a surface use agreement with Frank Wright ("Wright") which will apply to the parcel of land adjacent to the Property in the S/2NW/4 of Section 5, Township 1 North, Range 68 West ("Adjacent Property"). E. Wright and Highland have agreed that an Oil and Gas Operations Area will be located generally in the center of the NW/4 in part on the Property and in part on the Adjacent Property("Future Wellsite Location"). F. The purpose of this Amendment is for the parties to the Agreement to agree to an additional Oil and Gas Operations Area in part on the Property as hereinafter described. NOW THEREFORE, in consideration of the covenants and mutual promises of the parties set forth herein, and in the Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows: 1. The Oil Companies and Highland agree that an Oil and Gas Operations Area (in addition to the two Oil and Gas Operations Areas identified in the Agreement) shall be located generally in the center of the NW/4 in part on the Property and in part on MID 11111IIIII11111111111111111111 �M1111111 �� 1111 3322566 09/13/2005 04:13P Weld County, CO 24 of 26 R 131.00 D 0.00 Steve Moreno Clerk a Recorder the Adjacent Property as identified in Exhibit 2. The Future Wellsite Location shall be the size and configuration described in Exhibit 2. 2. The access route and pipeline easement for the Future Wellsite Location shall be at the locations identified in Exhibit 2. 3. The terms of the Agreement shall apply to the Future Wellsite Location. 4. Exhibits 1 and 2 are incorporated into this Amendment by this reference. 5. Except as specifically amended by this Amendment, the terms and conditions included in the Agreement shall continue in full force and effect. 6. The Oil Companies shall record this Amendment to Surface Use Agreement in the office of the Clerk and Recorder of Weld County and provide Highland with a copy of the recorded document. 7. This Amendment is binding upon the parties and their successors and assigns and shall be a covenant running with the land. IN WITNESS WHEREOF, the undersigned parties have caused this Amendment to be executed by a duly authorized representative on the date first above written. ANADARKO E&P COMPANY LP ANADARKO LAND CORP. By: By: Name: Name: Title: Title: ENCANA OIL & GAS (USA) INC. HIGHLAND ACQUISITION GROUP, L.L.C. By: By: Name: Name: Title: Title: 2 1111111 11111 11111 in ILA 1111111 I I 11111111111111 3322566 09/13/2005 04:13P Weld County, CO 25 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder ACKNOWLEDGMENTS STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of , 2005, by as for ANADARKO E&P LP. My Commission expires: Witness my hand and official seal. Notary Public STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The foregoing instrument was acknowledged before me this day of , 2005, by as for ANADARKO LAND CORP. My Commission expires: Witness my hand and official seal. Notary Public 3 • 3322566 09/13/2005 04:13P Weld County, CO 26 of 26 R 131.00 D 0.00 Steve Moreno Clerk& Recorder STATE OF COLORADO ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , 2005, by as for ENCANA OIL & GAS (USA) INC. My Commission expires: Witness my hand and official seal. Notary Public STATE OF COLORADO ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , 2005, by as for HIGHLAND ACQUISITION GROUP, L.L.C. My Commission expires: Witness my hand and official seal. Notary Public 4 BOARD OF COUNTY COMMISSIONERS' SIGN POSTING CERTIFICATE THE LAST DAY TO POST THE SIGN IS November 8, 2005. THE SIGN SHALL BE POSTED ADJACENT TO AND VISIBLE FROM A PUBLICALLY MAINTAINED ROAD RIGHT-OF-WAY. IN THE EVENT THE PROPERTY BEING CONSIDERED FOR A SPECIAL REVIEW IS NOT ADJACENT TO A PUBLICALLY MAINTAINED ROAD RIGHT-OF-WAY, THE DEPARTMENT OF PLANNING SERVICES SHALL POST ONE SIGN IN THE MOST PROMINENT PLACE ON THE PROPERTY AND POST A SECOND SIGN AT THE POINT AT WHICH THE DRIVEWAY (ACCESS DRIVE) INTERSECTS A PUBLICALLY MAINTAINED ROAD RIGHT-OF-WAY. I, Chris Gathman, HEREBY CERTIFY UNDER PENALTIES OF PERJURY THAT THE SIGN WAS POSTED ON THE PROPERTY AT LEAST FIFTEEN DAYS BEFORE THE BOARD OF COMMISSIONERS HEARING FOR PZ-1074 IN THE AGRICULTURAL ZONE DISTRICT. Chris Gathman Name of Person Posting Sign Aa-A g.6 /4144/(-- 7 1 Signature of Person Posting Sign STATE OF COLORADO )ss. COUNTY OF WELD The foregoing instrument was subscribed and sworn to me this-±7i day of i �( (/�i77%�C 1 , 2005. WITNESS my hand and official seal. 1 . 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