HomeMy WebLinkAbout20052488.tiff 2412 Denby Court Fort Collins,Colorado 80526/(970)207-0272
Letter of Transmittal
Date: 18-Jul-05
To: Sheir Lockman
Project: Owl Creek, MF-547
Via. X Fax UPS
Mail Overnight
Pick Up Courier
Hand Deliver
We Transmit for your: InformatiorX Files X
Approval Correction
Signature Return
Number of Copies: 1 Number of Pages:
Remarks: Attached is evidence that Condition of Approval 2J has been satisfied.
From: Todd Hodges Design, LLC
2005-2488
EXHIBIT
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07/06/2005 20:22 9703517851 ORR LAND PAGE 01
-- STATE OF COLORADO
DEPARTMENT OF TRANSPORTATION
REGION 4'TRAFFIC aiggig
1420 Second Street
Greeley,Colorado 80631
(970)3'50.2148 .___..._.1..�..._-.___.
(970)350-2196 fax
anACH TO PERMIT#403050
FINAL EXTENSION
Access Permit Extension
Permit#403050
SR 392/MP 23.490/LT
Patrol 4125
July 5,2005
.. -
Tammy Ellaman . . "'
Orr road Company
826 9'"Street
Greeley,CO 80631
Dear Tammy:
In reply to your written request this letter will be your authorization for the extension of Access Permit#403050,located on
State Highway(SH)392,at Mile Post 23.490/Lett
Access Permit#403050 is hereby extended until June 11,2006.
Sincerely,
tna
tcit—[12___
Rice-Idler
Access Manager
(970)350-2148
xc: Permit File
Applicant
Staff Traffic
Mac Patrol(2)
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07/06/2005 20:22 9703517651 ORR LAND PAGE 02
•
Colorado Department of Transportation
1420 2"d Street
Greeley; CO 80631
970.350-2148
June 30, 2005
' To Whom It May Concern:
In reference to permit number 403050, access permit for
Olando, LLC on Hwy 392:we are requesting one year
extension. The reason for the extension is due to the on going
process of hearings for the final plat of the project. If you have
any concerns please call me at 970-539-8778: .
Sincerely,
Tammy Ellerman
Olando, LLC
•
•
Orr Land Company . . .
be 826 9th Street
Greeley, Colorado 80631
1Ui This • (970) 3514777 Fax • (970) 351-7851 Web • orrland.=
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1269 North Cleveland Avenue Loveland, Colorado 80537/(970)613-8556
Letter of Transmittal
Date: 27-Jul-05
To: Sheri Lockman, Department of Planning Services
Project: Owl Creek , MF-547
Via X Fax 2 UPS
Mail Overnight
Pick Up Courier
Hand Deliver
We Transmit for your: Informatior;: Files
Approval Correction
Signature Return
Number of Copies: 7. Number of Pages:
Remarks: Attached is a print-out from the Colorado Secretary of State indicating the Owl Creek
Estates Homeowners Association is in good standing. This evidence satisfies
condition of approval item 1 E on page 4.
PLEASE CONTACT US FOR FURTHER INFORMATION.
FROM: Todd A. Hodges, Principal Manager
Todd Hodges Design, LLC
(970) 613-8556
EXHIBIT
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Colorado Secretary of State- Information On File Page 1 of 1
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For this Record... Information On File
Cart of Good Standing
File Document
Email Notification
History&Documents ID Number: 20041395225
Name: Owl Creek Estates Homeowner's Association
Business Home ..._._. __._ ......_ .....__ _
Business Information Registered Agent: Ed T Orr
Business Search Registered Agent Street Address: 826 9th Street, Greeley, CO 80631, United States
FAQs Registered Agent Mailing Address:
Glossary _.. _.. _. .. .. . _... .. _...
Principal Office Street Address: 826 9th Street, Greeley, CO 80631, United States
Principal Office Mailing Address:
Status: Good Standing
Form: Nonprofit Corporation
Jurisdiction: Colorado
Formation Date: 11/12/2004
Term of Duration: Perpetual
Annual Report Month: November
You may:
• View History and Documents
• Obtain Certificate of Good Standing
• File a Document
• Set Up Email Notification
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Business Center.303 8942200.Fax:303 869 4864•Forms fax back:303 860 6975•e-mail:sgaggsjnagasssataLea " BG66f
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FW: Owl Creek Estates (W/2 SE/4 16-6N-64W) Agreement Page 1 of 2
Sheri Lockman
From: Ed Orr[edo@orrland.com]
Sent: Monday, July 25, 2005 2:32 PM
To: Sheri Lockman
Subject: Fw: Owl Creek Estates (W/2 SE/4 16-6N-64W)Agreement
Original Message
From: Enright, Terry
To: edoRorrland.com
Cc: Wason, James ; Hayes, Christopher G. ; Bethea, Susan [Contractor]
Sent: Monday, July 11, 2005 7:54 AM
Subject: FW: Owl Creek Estates (W/2 SE/4 16-6N-64W)Agreement
Ed,
To keep this moving, I am going to have a rough draft of an agreement drawn up within a few days for your
review. It will be based on this email. Please call with any additional concerns, if any.
Thank you,
Terry
Original Message
From: Enright,Terry
"-' Sent: Thursday,July 07, 2005 11:03 AM
To: 'edo@ordand.com'
Cc: Wason,James; Bethea,Susan [Contractor]
Subject: Owl Creek Estates(W/2 SE/4 16-6N-64W)Agreement
Ed, •
Here is what we discussed this yesterday:
1) KMG's access road in addition to the roads outlined in your plat, would allow KMG to access the center drill
window from the Owl Creek State#10-16, east to Owl Creek and then south along Owl Creek. These will be dirt
roads with complete access by KMG and will need to be shown on the plat.
2) The 800 foot center drilling window would be reduced to 3 acres in the center of the same window just west
of the Owl Creek. This would be designated as a "No Build"Area. A sketch of the approximate area in Lots 6
and 7 will be faxed to your office.
3) The new flowline will run northwest from the new designated operations area described in 2 above. Then it
will run parallel to the existing flowline for Owl Creek State #10-16 and then tie into the Tank Battery in the
southwest corner of the development. Again this should be shown on the plat.
4)The drill window in the lower area by Lot 9 will be eliminated.
5) A release for the surface use agreement executed on March 9, 2001, will be recorded.
6) This agreement between KMG and Orlando Limited will be assignable and recorded.
07/25/2005
FW: Owl Creek Estates (W/2 SE/4 16-6N-64W) Agreement Page 2 of 2
Please advise if there are any questions in this email and we appreciate your cooperation.
Thank you,
Terry
Terry D. Enright
Landman Specialist
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
720-264-2642(o) 970-590-0729(c)
tenright@kmg.com
Important Notice!
If you are not the intended recipient of this e-mail message, any use, distribution or copying of the
message is prohibited.
Please let me know immediately by return e-mail if you have received this message by mistake,
then delete the e-mail message.
Thank you.
07/25/2005
Message Page 1 of 1
Sheri Lockman
From: Ed Orr[edo@orrland.com]
Sent: Monday, July 25, 2005 2:32 PM
To: Sheri Lockman
Subject: Fw: Surface Use Agreement
Original Message
From: Enright, Terry
To: Ed Orr
Sent: Monday, July 11, 2005 1:35 PM
Subject: RE: Surface Use Agreement
Ed,
Thanks for your quick response. I am reviewing the agreement and hope to have a response by tomorrow.
Again thanks,
Terry
Original Message
From: Ed Orr [mailto:edo@orrland.com]
Sent: Monday, July 11, 2005 11:53 AM
To: Enright, Terry
Cc: Tammy
Subject: Surface Use Agreement
Terry -following is a Surface Use Agreement which I have prepared. I am ordering an Exhibit A from the
surveyor which shows the same items you previously hand drew regarding access and no build area.
Please let me know if this agreement is acceptable or not at your earliest convenience. If not acceptable,
please respond with your concerns and reasoning in writing.
Ed Orr
Orr Land Company
Important Notice!!
If you are not the intended recipient of this e-mail message, any use, distribution or copying of the
message is prohibited.
Please let me know immediately by return e-mail if you have received this message by mistake,
then delete the e-mail message.
Thank you.
07/25/2005
SURFACE USE AGREEMENT
This Surface Use Agreement ("Agreement") is entered into and made effective
this 8th day of July, 2005, by and between Kerr-McGee Rocky Mountain Corporation
("KMRMC") and Olando Ltd. Liability Co. ("Surface Owner"). KMRMC and Surface
Owner may be referred to herein individually as a "Party", or collectively as the
"Parties".
Recitals
A. Surface Owner owns the surface estate of that certain tract of land more
particularly described as Lot B of Recorded Exemption No. 0801-16-4-RE2016, located
in W/2SE/4 of Section 16, Township 6 North, Range 64 West, Weld County, Colorado
(hereinafter referred to as the "Property");
B. The State of Colorado is the owner of all minerals underlying the property.
C. Surface ownership of the Property is subject to the rights of the oil and gas
leasehold estate, all or a portion of which is owned by KMRMC;
D. Surface Owner plans to develop the surface of the Property as a residential
subdivision known as "Owl Creek Estates";
E. KMRMC currently operates two wells, the Howard State #1 Well, located
in the SW/4 of the SE/4 of Section 16, and the Owl Creek State #10-16, in the NW/4SE/4
of Section 16, Township 6 North, Range 64 West, Weld County, Colorado (the "Existing
Wells"), and associated flowlines and production facilities located on the Property and
has the right to develop its oil and gas leasehold estate by drilling additional wells on the
Property ("Future Wells" and together with the Existing Wells, the "Wells") and by
deepening, recompleting or reworking the Howard State #1 Well or the Owl Creek State
Well;
F. Orlando and HS Resources, a predecessor in interest to KMRMC, had
previously entered into a surface use agreement on March 9, 2001, recorded at Reception
No. 2834245 in the Weld County Clerk and Recorder's office. That surface use
agreement expired by its own terms and is no further force and effect, and the Parties
wish to enter into a new agreement.
G. This Agreement sets forth the Parties' rights and obligations regarding the
relationship between the development of the Property by Surface Owner and KMRMC's
operation and development of its oil and gas leasehold estate, such rights and obligations
to be binding upon the Parties' successors and assigns.
Agreement
In consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:
1. Well Locations. Surface Owner will provide KMRMC the areas
designated on Exhibit A for any reasonably necessary operations conducted by KMRMC
in connection with the Wells. KMRMC agrees to limit its oil and gas operations
conducted in connection with the Wells, including, but not limited to, lease operating
activities, workovers, drilling, deepenings, and fracturing, to those locations identified on
Exhibit "A" as the "Oil and Gas Operations Areas". KMRMC shall have the right to use
the Oil and Gas Operations Area to deepen, re-enter, re-complete, or re-work Existing
Wells, and to drill Future Wells, including twinned Wells, horizontal Wells and
directional Wells, that produce from and drain the Property as well as lands that are
pooled or communitized with the Property.
2. Production Facilities. KMRMC shall have the right to locate, build,
repair and maintain tanks, separators, dehydrators, compressors and other equipment
reasonably appropriate or convenient for the operation and production of any Wells, only
within the Oil and Gas Operations Areas. In the event KMRMC drills additional Wells,
KMRMC shall use the Oil and Gas Operations Areas.
3. Access.
a. Existing Access Routes. Surface Owner acknowledges and
understands that KMRMC has the right to continue to use the access routes that it
is currently using to access existing Wells and production facilities, as shown on
Exhibit A.
b. Surface Owner hereby grants to KMRMC easements for access to
the Oil and Gas Operations Areas shown on Exhibit A. At such time as Surface
Owners develop the surface of the Property, KMRMC shall restrict its use of
access routes to those shown on Exhibit A or as otherwise mutually agreed upon
by the parties.
4. Flowlines. KMRMC currently operates a flowline that runs from the
Existing Well to the Existing Production Facility shown on Exhibit A. In addition,
Surface Owner shall provide KMRMC with such additional easements as are necessary to
service Future Wells on the Oil and Gas Operations Areas.
5. Impact Mitigation and Improvements.
a. KvIRMC Mitigation. KMRMC may install and maintain, at its
sole cost and expense, fences, gates and locks if required by the Colorado Oil and
Gas Conservation Commission ("COGCC") or if necessary or convenient for the
security of any Wells or production facilities. In addition, KMRMC shall paint its
production facilities, including wellhead guards, with paint that is approved by the
COGCC and which shall be earth tone in color.
b. Surface Owner Mitigation. Surface Owner shall not inhibit
KMRMC's operations within the Oil and Gas Operation Areas by landscaping or
other improvements, unless otherwise agreed to in writing between Surface
Owner and KMRMC.
6. Setback Requirements and Waivers. Surface Owner will not locate any
buildings or structures within the Oil and Gas Operations Areas. The parties
acknowledge that the Colorado Oil and Gas Conservation Commission ("COGCC") has
rules and regulations that set forth minimum distances between well sites and public
roads, railroads, overhead power lines and surface property lines. Surface Owner hereby
waives COGCC Rule 603 or any successor rule to COGCC setback requirements, or
other state or local setback requirements as they apply to surface property lines in
connection with any permits for which KMRMC may apply to drill, deepen, refracture or
otherwise service the existing Wells and future Wells contemplated hereunder.
7. Drilling and Completion Operations. KMRMC shall provide notice to
Surface Owner of any operations in connection with the reworking, fracturing, deepening
or other operation on its Wells in accordance with the rules and regulations of the
COGCC. KMRMC shall endeavor to diligently pursue any drilling operations to
minimize the total time period and to avoid rig relocations or startup during the course of
drilling. KMRMC may use continuous (24 hour) drilling operations in the course of
diligently pursuing operations.
8. Representations. Each Party represents that it has the full right and
authority to enter into this Agreement. KMRMC does not represent that it has rights to
settle matters for all of the mineral owners in the Property, and this Agreement shall only
apply to and bind operations conducted by KMRMC and its successors and assigns on the
Property, in the capacity of operator.
9. No Waiver of Rights. KMRMC does not waive its rights pursuant to its
oil and gas leasehold interest to explore for, drill and produce the oil and gas on the
Property or for ingress and egress to any Oil and Gas Operations Areas, except as
specifically provided in this Agreement.
10. Successors and Assigns. The terms, covenants and conditions hereof
shall be binding upon and shall inure to the benefit of the Parties and their respective
heirs, devises, executors, administrators, successors and assigns.
11. Termination. This Agreement shall automatically terminate and be of no
further force and effect at such time that KMRMC's oil and gas leasehold estate expires
or is terminated, and KMRMC has plugged and abandoned all Wells owned all or in part
by KMRMC and complied with the requirements of all applicable oil and gas leases
pertaining to removal of equipment, reclamation, cleanup, COGCC rules and regulations
and all other applicable provisions of the oil and gas leases and existing laws and
regulations. At the request of Surface Owner, KMRMC shall execute and record such
documents or instruments as Surface Owner shall reasonably request in order to evidence
such termination.
12. Notices. Any notice or other communication required or permitted under
this Agreement shall be sufficient if deposited in U.S. Mail, postage prepaid, or sent via
expedited delivery service, with proof of delivery, addressed as follows:
If to KMRMC:
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
Attention: Director of Lands Denver Basin
If to Surface Owner:
Orlando Ltd. Liability Co.
826 9th Street
Greeley, Colorado 80631
Attention: Ed On
Any Party may, by written notice so delivered to the other Parties, change the address or
individual to which delivery shall thereafter be made.
13. Recording. KMRMC may record a Memorandum of Surface Use
Agreement evidencing the existence of this Agreement.
14. Surface Use Limitation. Except for the Oil and Gas Operations Areas,
access roads and all easement associated with flowlines, gathering lines and pipelines as
provided in this Agreement, KMRMC shall not occupy any other portion of the surface
of the Property, except in the event of an emergency or for reasonable incidental,
temporary and non-damaging activities, and KMRMC will be responsible for any
damages that may occur as a result of its activities on such other portions of the surface
of the Property.
15. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado, without reference to its conflict of
laws provisions.
16. Entire Agreement. This Agreement sets forth the entire understanding
among the Parties hereto regarding the matters addressed herein, and supersedes any
previous communications, representations or agreement, whether oral or written. This
Agreement shall not be amended, except by written document signed by all Parties.
17. Counterpart Execution. This Agreement may be executed in any number
of counterparts each of which shall be deemed an original instrument but all of which
together shall constitute one and the same instrument.
The Parties have executed this Agreement on the day and year first above written.
KERR-McGEE ROCKY MOUNTAIN CORPORATION
By:
James P. Wason, Attorney-in-fact
SURFACE OWNER
By:
Its:
Acknowledgments
STATE OF COLORADO )
CITY AND ) ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this day of
, 2005, by JAMES P. WASON, as Attorney-in-Fact of Kerr McGee Rocky
Mountain Corporation, on behalf of such corporation.
Witness my hand and official seal.
(SEAL)
Notary Public
My Commission Expires:
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2005, by as
for Olando Ltd. Liability Co., a Colorado limited liability company.
Witness my hand and official seal.
(SEAL)
Notary Public
My Commission Expires:
Important Notice!
If you are not the intended recipient of this e-mail message, any use, distribution or
copying of the message is prohibited.
Please let me know immediately by return e-mail if you have received this message by
mistake,
then delete the e-mail message.
Thank you.
Owl Creek Estates SUA Page 1 of 1
Sheri Lockman
From: Enright, Terry [TEnright@kmg.com]
Sent: Tuesday, July 19, 2005 2:53 PM
To: Ed Orr
Cc: Wason, James
Subject: Owl Creek Estates SUA
Ed,
Let's tentatively shoot for 4:30 today. I have not confirmed with Mr. Wason, but I believe it might work. We will call
you at your office.
Thanks,
Terry
Terry D. Enright
Landman Specialist
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
720-264-2642(o) 970-590-0729(c)
tenright@kmg.com
Important Notice!!
If you are not the intended recipient of this e-mail message, any use, distribution or copying of the
message is prohibited.
Please let me know immediately by return e-mail if you have received this message by mistake,
then delete the e-mail message.
Thank you.
07/25/2005
SURFACE USE AGREEMENT
This Surface Use Agreement ("Agreement") is entered into and made effective
this 8th day of July, 2005, by and between Kerr-McGee Rocky Mountain Corporation
("KMRMC") and Olando Ltd. Liability Co. ("Surface Owner"). KMRMC and Surface
Owner may be referred to herein individually as a "Party", or collectively as the
"Parties".
Recitals
A. Surface Owner owns the surface estate of that certain tract of land more
particularly described as Lot B of Recorded Exemption No. 0801-16-4-RE2016, located
in W/2SE/4 of Section 16, Township 6 North, Range 64 West, Weld County, Colorado
(hereinafter referred to as the "Property");
B. The State of Colorado is the owner of all minerals underlying the property.
C. Surface ownership of the Property is subject to the rights of the oil and gas
leasehold estate, all or a portion of which is owned by KMRMC;
D. Surface Owner plans to develop the surface of the Property as a residential
subdivision known as "Owl Creek Estates";
E. KMRMC currently operates two wells, the Howard State #1 Well, located
in the SW/4 of the SE/4 of Section 16, and the Owl Creek State #10-16, in the NW/4SE/4
of Section 16, Township 6 North, Range 64 West, Weld County, Colorado (the "Existing
Wells"), and associated flowlines and production facilities located on the Property and
has the right to develop its oil and gas leasehold estate by drilling additional wells on the
Property ("Future Wells" and together with the Existing Wells, the "Wells") and by
deepening, recompleting or reworking the Howard State #1 Well or the Owl Creek State
Well;
F. Olando and HS Resources, a predecessor in interest to KMRMC, had
previously entered into a surface use agreement on March 9, 2001, recorded at Reception
No. 2834245 in the Weld County Clerk and Recorder's office. That surface use
agreement expired by its own terms and is no further force and effect, and the Parties
wish to enter into a new agreement.
G. This Agreement sets forth the Parties' rights and obligations regarding the
relationship between the development of the Property by Surface Owner and KMRMC's
operation and development of its oil and gas leasehold estate, such rights and obligations
to be binding upon the Parties' successors and assigns.
Agreement
In consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:
1. Well Locations. Surface Owner will provide KMRMC the areas
designated on Exhibit A for any reasonably necessary operations conducted by KMRMC
in connection with the Wells. KMRMC agrees to limit its oil and gas operations
conducted in connection with the Wells, including, but not limited to, lease operating
activities, workovers, drilling, deepenings, and fracturing, to those locations identified on
Exhibit "A" as the"Oil and Gas Operations Areas".
2. Production Facilities. KMRMC shall have the right to locate, build,
repair and maintain tanks, separators, dehydrators, compressors and other equipment
reasonably appropriate or convenient for the operation and production of any Wells, only
within the Oil and Gas Operations Areas. In the event KMRMC drills additional wells
KMRMC shall use the existing production facility area.
3. Access.
a. Existing Access Routes. Surface Owner acknowledges and
understands that KMRMC has the right to continue to use the access routes that it is
currently using to access existing Wells and production facilities.
b. At such time as development of the surface occurs by Surface
owners KMRMC. Access shall be those access routes as shown on Exhibit A or as
otherwise mutually agreed upon by the parties.
4. Impact Mitigation and Improvements.
a. KMRMC Mitigation. KMRMC may install and maintain, at its
sole cost and expense, fences, gates and locks if required by the Colorado Oil and Gas
Conservation Commission ("COGCC") or if necessary or convenient for the security of
any Wells or production facilities. Such fencing shall be the smallest area possible
around such facilities which allow KMRMC to conduct its operations. In addition,
KMRMC shall paint its production facilities, including wellhead guards, with paint that is
approved by the COGCC and which shall be earth tone in color.
b. Surface Owner Mitigation. Surface Owner shall not inhibit
KMRMC's operations within the Oil and Gas Operation Areas by landscaping or other
improvements, unless otherwise agreed to in writing between Surface Owner and
KMRMC.
5. Setback Requirements and Waivers. Surface Owner will not locate any
buildings or structures within the Oil and Gas Operations Areas. KMRMC operations
within the Oil and Gas Operations Areas shall include all reasonably necessary use of the
surface, including access, which shall be mutually agreed upon by the Parties, for
maintenance, well deepenings, re-completions, work overs, fracturing and other activities
required for reasonably prudent operantions of the existing wells and any replacement
well. The parties acknowledge that the Colorado Oil and Gas Conservation Commission
("COGCC") has rules and regulations that set forth minimum distances between well
sites and public roads, railroads, overhead power lines and surface property
lines. Surface Owner hereby agrees that, provided KMRMC is in strict compliance with
the terms of this agreement, it shall waive such COGCC setback requirements for
surface property lines in connection with any permits for which KMRMC may apply to
drill, deepen refrac or otherwise service the existing wells and future well contemplated
hereunder. Surface Owner shall, upon request by KMRMC, evidence such waiver in
writing to the COGCC.
6. Drilling and Completion Operations. KMRMC shall provide notice to
Surface Owner of any operations in connection with the reworking, fracturing, deepening
or other operation on its Wells in accordance with the rules and regulations of the
COGCC. KMRMC shall endeavor to diligently pursue any drilling operations to
minimize the total time period and to avoid rig relocations or startup during the course of
drilling.
7. Representations. Each Party represents that it has the full right and
authority to enter into this Agreement. KMRMC does not represent that it has rights to
settle matters for all of the mineral owners in the Property, and this Agreement shall only
apply to and bind operations conducted by KMRMC and its successors and assigns on the
Property, in the capacity of operator.
8. No Waiver of Rights. KMRMC does not waive its rights pursuant to its oil
and gas leasehold interest to explore for, drill and produce the oil and gas on the Property
or for ingress and egress to any Oil and Gas Operations Areas, except as specifically
provided in this Agreement.
9. Successors and Assigns. The terms, covenants and conditions hereof shall
be binding upon and shall inure to the benefit of the Parties and their respective heirs,
devises, executors, administrators, successors and assigns.
10. Termination. This Agreement shall automatically terminate and be of no
further force and effect at such time that KMRMC's oil and gas leasehold estate expires
or is terminated, and KMRMC has plugged and abandoned all Wells owned all or in part
by KMRMC and complied with the requirements of all applicable oil and gas leases
pertaining to removal of equipment, reclamation, cleanup, COGCC rules and regulations
and all other applicable provisions of the oil and gas leases and existing laws and
regulations. At the request of Surface Owner, KMRMC shall execute and record such
documents or instruments as Surface Owner shall reasonably request in order to evidence
such termination.
11. Notices. Any notice or other communication required or permitted under
this Agreement shall be sufficient if deposited in U.S. Mail, postage prepaid, or sent via
expedited delivery service, with proof of delivery, addressed as follows:
If to ICVIRIVIC:
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
Attention: Director of Lands Denver Basin
If to Surface Owner:
Olando Ltd. Liability Co.
826 9`h Street
Greeley, Colorado 80631
Attention: Ed On
Any Party may, by written notice so delivered to the other Parties, change the address or
individual to which delivery shall thereafter be made.
12. Recording. This Agreement shall be recorded by Surface Owner
subsequent to the final plat approval of Owl Creek Estates by Weld County and shall
become effective upon the approval of the final plat of Owl Creek Estates by Weld
County.
13. Surface Use Limitation. Except for the Oil and Gas Operations Areas,
access roads and all easement associated with flowlines, gathering lines and pipelines as
provided in this Agreement, KMRMC shall not occupy any other portion of the surface
of the Property, except in the event of an emergency or for reasonable incidental,
temporary and non-damaging activities, and KMRMC will be responsible for any
damages that may occur as a result of its activities on such other portions of the surface
of the Property.
14. Surface Damage Payment. Prior to commencing earth moving
operations in connection with the future well hereunder, KMRMC shall pay Olando a
reasonable amount as payment for all regularly anticipated normal damages in connection
with the drilling of the Future well.
15. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado, without reference to its conflict of
laws provisions.
16. Entire Agreement. This Agreement sets forth the entire understanding
among the Parties hereto regarding the matters addressed herein, and supersedes any
previous communications, representations or agreement, whether oral or written. This
Agreement shall not be amended, except by written document signed by all Parties. In
the event the Final Plat is not approved by Weld County this agreement shall terminate
and become null and void and of no further force and effect and shall not be recorded by
either party.
r
17. Counterpart Execution. This Agreement may be executed in any number
of counterparts each of which shall be deemed an original instrument but all of which
together shall constitute one and the same instrument.
The Parties have executed this Agreement on the day and year first above written.
KERR-McGEE ROCKY MOUNTAIN CORPORATION
By:
James P. Wason, Attorney-in-fact
SURFACE OWNER
By:
Its:
Acknowledgments
STATE OF COLORADO )
CITY AND ) ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this day of
, 2005, by JAMES P. WASON, as Attorney-in-Fact of Kerr McGee Rocky
Mountain Corporation, on behalf of such corporation.
Witness my hand and official seal.
(SEAL)
Notary Public
My Commission Expires:
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2005, by as
for Olando Ltd. Liability Co., a Colorado limited liability company.
Witness my hand and official seal.
(SEAL)
Notary Public
My Commission Expires:
Important Notice!
If you are not the intended recipient of this e-mail message, any use, distribution or
copying of the message is prohibited.
Please let me know immediately by return e-mail if you have received this message by
mistake,
then delete the e-mail message.
Thank you.
• Page 1 of 1
Sheri Lockman
From: Ed Orr [edo@orrland.com]
Sent: Monday, July 11, 2005 1:35 PM
To: TEnright@kmg.com
Subject: Fw: Surface Use Agreement
Original Message
From: Ed Orr
To: TEnright@kmg.com
Cc: Tammy
Sent: Monday, July 11, 2005 11:52 AM
Subject: Surface Use Agreement
Terry -following is a Surface Use Agreement which I have prepared. I am ordering an Exhibit A from the
surveyor which shows the same items you previously hand drew regarding access and no build area. Please let
me know if this agreement is acceptable or not at your earliest convenience. If not acceptable, please respond
with your concerns and reasoning in writng.
Ed Orr
Orr Land Company
07/25/2005
-AUG-05-2005 FRI 04:43 P11 WELD CO GOVT FAX NO. 9703520242 P. 01
AUG-06-08 18:12 FROM-BJ0RK LINDLEY LITTLE PC +303802140i T-R$2 P.001/003 F-68t
BiJORK . LINDLEY . Lints . Pc
LAWYItf9
1OOO Stout Street • Suite 14OO • Denver • Colorado 8O2O2
Telephone: 3034392.1400 • Facsimile:3O343O2-14O1 • www.bJOrlOnaleY.cOrn
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CONFIDENTIAL
DATE: August 5,2005
TO: Shed Lockman,Planner
COMPANY: Weld County Department of Planning Services
FAX NO,: (970)352-0242
FROM: Christopher G.Hayes
MESSAGE: Please see attached letter dated August 5,2005.
NUMBER OF PAGES: (Including Cover Sheet) 3
ORIGINAL TO FOLLOW: yes , no
PLEASE CHECK THE TRANSMISSION AFTER THE LASTPAGE. IF YOU ARE NOT RELIEVING ALL PAGES
OR HAVE ANY PROBLEM WITHTHETRANSMISSION.PLEASE CALL THEOPERATORThavIEDIATELYAT
(303)892-1400.
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF TIE INDIVIDUAL OR ENTITY TO'WHICH IT IS
ADDRESSED AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,CONFIDENTIAL AND EXEMPT
FROM DISCLOSURE UNDER APPLICABLE LAW. IF TILE READER OF IRIS MESSAGE IS NOT THE
INTENDED RECIPIENT.YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION.DISTRIBUTION.OR
COPYING OP THIS COM2vIUNICATION 1S STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS
COMMUNICATION IN ERROR,PLEASE NOTIFY US IMMEDIATELY BY TELEPHONE AND RETURN THE
ORIGINAL MESSAGE TO US AT THE ABOVE ADDRESS VIA THE US.POSTAL SERVICE, THANK YOU.
i
g�'q h t f
AUG-05-2005 FRI 04:43 PM WELD CO GOVT FAX NO. 9703520242 P. 02
AUG-OS-05 It:I2 FM-BJORK LINDLEY LITTLE PC +8081021401 T-012 P.002/003 Fill
B.Iowc • LINDLEY • LITTLE • pc
LAWYERS
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JILL S.GReenl
Cw,etewm G.War
AM M.vaguer
•
August 5, 2005
Weld County Department of Planning Services
915 10th Street
Box 758
Greeley. CO 80632
Attention: Sheri Lockman
Planner
Re: 547
Olando Limited LiabUJty Corporation
SE/4 Section 16,Township 6 North,Range 64 West
Minor Subdivision Final Plan
Owl Creek Estates
Dear Ms. Lockman:
This firm represents Kerr-McGee Rocky Mountain Corporation ("KIVIRMC"), which is
an interested party. in the above-captioned subdivision filing. KMT MC owns valid and
subsisting mineral leases underlying the property, access to which may be affected if the filing is
approved- KMRMC and Mande Limited Liability Corporation have been attempting to
negotiate a surface use agreement according to which both parties would be able to realize the
value of their property interests in the captioned tract. The parties have reached agreement on
substantially all of the issues between them, with the exception of the question of when the
agreement becomes effective and when it would be recorded.
Kerr-McGee expects that the parties will be able to reach an agreement, However.
because the parties have not yet executed a final agreement,KMRMC requests that the planning
1000 Syour Smut•Manilla;•Draw',Camanikea
T/.1.w«eNe 80-802.1400•Pala 303.502-1401 •%N1 aloridindey.cam
AUG-05-2005 FRI 04:43 PN WELD CO GOVT FAX NO. 9703520242 P. 03
AUG-06-06 16:12 FROM-BJORK LINDLEY LITTLE PC +30380214El T-OE2 P.008/003 F-6AB
Weld County Department of Planning Services
August 5,2005
Page
commission withhold approval of Olando Limited Liability Corporation's minor subdivision
final plan proposal until the parties can agree on a surface use agnxrnent that will be effective
and mutually satisfactory to both of than.
This letter should be considered to be a procedural objection, which will be withdrawn
when the parties execute a mutually satisfactory surface use agreement.
Please contact me if you have any questions or concerns.
Very truly yours,
Zr.).___HINDCEARE it
Chrism O.Ha
COH:jad
cc: Client
BOARD OF COUNTY COMMISSIONERS' SIGN POSTING
CERTIFICATE
THE LAST DAY TO POST THE SIGN IS AUG. 23, 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, SHERI LOCKMAN, 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 MF-547 IN THE AGRICULTURAL ZONE DISTRICT.
SHERI LOCKMAN
Name of Person Posting Sign
Sign f of PersiVbst7
Sign
STATE OF COLORADO
)ss.
COUNTY OF WELD )
7
The foregoing instrument was subscribed and sworn to me this4,J.day of , 200
WITNESS my hand and official seal.
kx :ix,(,__)4 -) au i -c•
Notar ipublic
BILLIE J. MOORE
My Commission Expires: , .- - '\STATEOFCOLORAD
EXHIBIT
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Posted August 23, 2005 by Sheri Lockman
.
08/18/2005 00:58 9703517851 ORR LAND PAGE 02
SURFACE USE AGREEMENT
This Surface Use Agreement ("Agreement") is entered into and made effective
this 8th day of July, 2005, by and between Kerr-McGee Rocky Mountain Corporation
("KMRMC") and Olando Ltd. Liability Co. ("Surface Owner"). KMRMC and Surface
Owner may be referred to herein individually as a "Party", or collectively as the
"Parties".
Recitals
A. Surface Owner owns the surface estate of that certain tract of land more
particularly described as Lot B of Recorded Exemption No. 0801-16-4-RE2016, located
in W/2SE/4 of Section 16, Township 6 North, Range 64 West, Weld County, Colorado
(hereinafter referred to as the"Property");
B. The State of Colorado is the owner of all minerals underlying the property.
C. Surface ownership of the Property is subject to the rights of the oil and gas
leasehold estate, all or a portion of which is owned by KMRMC;
D. Surface Owner plans to develop the surface of the Property as a residential
subdivision known as "Owl Creek Estates";
E. KMRMC currently operates two wells, the Howard State #1 Well, located
in the SW/4 of the SE/4 of Section 16, and the Owl Creek State #10-16, in the NW/4SE/4
of Section 16, Township 6 North, Range 64 West, Weld County, Colorado (the "Existing
Wells"), and associated flowlines and production facilities located on the Property and
has the right to develop its oil and gas leasehold estate by drilling additional wells on the
Property ("Future Wells" and together with the Existing Wells, the "Wells") and by
deepening, recompleti.ng or reworking the Howard State #1 Well or the Owl Creek State
Well;
F. Olando and 1-IS Resources, a predecessor in interest to KMRMC, had
previously entered into a surface use agreement on March 9, 2001, recorded at Reception
No. 2834245 in the Weld County Clerk and Recorder's office. That surface use
agreement expired by its own terms and is no further force and effect, and the Parties
wish to enter into a new agreement.
G. This Agreement sets forth the Parties' rights and obligations regarding the
relationship between the development of the Property by Surface Owner and KMRMC's
operation and development of its oil and gas leasehold estate, such rights and obligations
to be binding upon the Parties' successors and assigns.
EXHIBIT
MF-547
08/18/2005 00: 58 9703517851 ORR LAND
PAGE 03
•
Agreement
In consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:
1. Well Locations. Surface Owner will provide KMRMC the areas
designated on Exhibit A for any reasonably necessary operations conducted by KMRMC
in connection with the Wells. KMRMC agrees to limit its oil and gas operations
conducted in connection with the Wells, including, but not limited to, lease operating
activities, workovers, drilling, deepenings, and fracturing, to those locations, which are
identified on Exhibit A as the "Oil and Gas Operations Areas". KMRMC shall have the
right to use the Oil and Gas Operations Area to deepen, re-enter, re-complete, or re-work
Existing Wells, and to drill Future Wells, including twinned Wells, horizontal Wells and
directional Wells, that produce from and drain the Property as well as lands that are
pooled or communitized with the Property.
2. Production Facilities. KMRMC shall have the right to locate, build,
repair and maintain tanks, separators, dehydrators, compressors and other equipment
reasonably appropriate or convenient for the operation and production of any Wells, only
within the Oil and Gas Operations Areas. In the event KMRMC drills additional Wells,
KMRMC shall use the Oil and Gas Operations Areas.
3. Access.
a. Existing Access Routes. Surface Owner acknowledges and
understands that KMRMC has the right to continue to use the access routes that it
is currently using to access existing Wells and production facilities, as shown on
Exhibit A.
b. Surface Owner hereby grants to KMRMC easements for access to
the Oil and Gas Operations Areas shown on Exhibit A. At such time as Surface
Owners develop the surface of the Property, KMRMC shall restrict its use of
access routes to those shown on Exhibit A or as otherwise mutually agreed upon
by the parties.
4. Flowlines. KMRMC currently operates a flowline that runs from the
Existing Well to the Existing Production Facility shown on Exhibit A. The easement for
such flowline is shown on Exhibit A. In addition, Surface Owner shall provide KMRMC
with such additional easements as are necessary to service Future Wells on the Oil and
Gas Operations Areas.
5. Impact Mitigation and Improvement.
a. I{MRIviC Mitigation. KMRMC may install and maintain, at its
sole cost and expense, fences, gates and locks if required by the Colorado Oil and
08/18/2005 00:58 9703517851 ORR LAND PAGE 04
Gas Conservation Commission ("COGCC") or if necessary
the
security of any Wells or production facilities. In addition KMRMC shall paint its
production facilities, including wellhead guards, with paint that is approved by the
COGCC and which shall be earth tone in color.
b. Surface Owner Mitigation. Surface Owner shall not inhibit
KMRMC's operations within the Oil and Gas Operation Areas by landscaping or
other improvements, unless otherwise agreed to in writing between Surface
Owner and KMRMC.
6. Setback Requirement and Waivers. Surface Owner will not locate any
buildings or structures within the Oil and Gas Operations Areas. The parties
acknowledge that the Colorado Oil and Gas Conservation Commission ("COGCC") has
rules and regulations that set forth minimum distances between well sites and public
roads, railroads, overhead power lines and surface property lines. Surface Owner hereby
waives COGCC Rule 603 or any successor rule to COGCC setback requirements, or
other state or local setback requirements as they apply to surface property lines in
connection with any permits for which KMRMC may apply to drill, deepen, refracture or
otherwise service the existing Wells and future Wells contemplated hereunder.
7. Reserved
8. Representations. Each Party represents that it has the full right and
authority to enter into this Agreement. KMRMC does not represent that it has rights to
settle matters for all of the mineral owners in the Property, and this Agreement shall only
apply to and bind operations conducted by KMRMC and its successors and assigns on the
Property, in the capacity of operator.
9. No Waiver of Rights. KMRMC does not waive its rights pursuant to its
oil and gas leasehold interest to explore for, drill and produce the oil and gas on the
Property or for ingress and egress to any Oil and Gas Operations Areas, except as
specifically provided in this Agreement.
10. Successors and Assigns. The terms, covenants and conditions hereof
shall be binding upon and shall inure to the benefit of the Parties and their respective
heirs, devises, executors, administrators, successors and assigns.
11. Termination. This Agreement shall automatically terminate and be of no
further force and effect at such time that KMRMC's oil and gas leasehold estate expires
or is terminated, and KMRMC has plugged and abandoned all Wells owned all or in part
by KMRMC and complied with the requirements of all applicable oil and gas leases
pertaining to removal of equipment, reclamation, cleanup, COGCC rules and regulations
and all other applicable provisions of the oil and gas leases and existing laws and
regulations. At the request of Surface Owner, KMRMC shall execute and record such
documents or instruments as Surface Owner shall reasonably request in order to evidence
such termination. This Agreement may be terminated by mutual consent of the parties,
their successors or assigns.
08/18/2005 00:58 9703517851 ORR LAND
PAGE 05
12. Notices. Any notice or other communication required or permitted under
this Agreement shall be sufficient if deposited in U.S. Mail, postage prepaid, or sent via
expedited delivery service, with proof of delivery, addressed as follows:
If to KMRMC:
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
Attention: Director of Lands Denver Basin
If to Surface Owner:
Olando Ltd. Liability Co.
826 9th Street
Greeley, Colorado 80631
Attention: Ed Orr
Any Party may, by written notice so delivered to the other Parties, change the address or
individual to which delivery shall thereafter be made.
13. Recording. This Agreement shall be recorded by Surface Owner within
fifteen days following final plat approval of Owl Creek Estates by Weld County. Tn the
event the Final Plat is considered and rejected by Weld County, this agreement shall
terminate and become null and void and of no further force and effect and shall not be
recorded by either party.
14. Surface Use Limitation. Except for the Oil and Gas Operations Areas,
access roads and all easement associated with flowlines, gathering lines and pipelines as
provided in this Agreement, KMRMC shall not occupy any other portion of the surface
of the Property, except in the event of an emergency or for reasonable incidental,
temporary and non-damaging activities, and KMRMC will be responsible for any
damages that may occur as a result of'its activities on such other portions of the surface
of the Property.
15. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado, without reference to its conflict of
laws provisions.
16. Entire Agreement. This Agreement sets forth the entire understanding
among the Parties hereto regarding the matters addressed herein, and supersedes any
previous communications, representations or agreement, whether oral or written. This
Agreement shall not be amended, except by written document signed by all Parties.
17. Counterpart Execution. This Agreement may be executed in any number
of counterparts each of which shall be deemed an original instrument but all of which
together shall constitute one and the same instrument.
08/18/2005 00: 58 9703517851 ORR LAND PAGE 06
The Parties have executed this Agreement on the day and year first above written.
KERR-McGEE ROCKY MN CORPORATION
By: aA
James ' onorney-in-fac
SURFACE R
By.'�►C��
Its: ``
08/18/2005 00:58 9703517851 ORR LAND
PAGE 07
Acknowledgments
STATE OF COLORADO )
CITY AND )ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this day of
Au�us`k , 2005, by JAMES P. WASON, as Attorney-in-Fact of Kerr McGee Rocky
Mountain Corporation,on behalf of such corporation,
-: Witness thy hand and official seal.
(SEAL)
Notary Public
My Commission Expires: to( aaben
STATE OF COLORADO )
ss.
COUNTY OF )
•' D $gyp`/ going instrument acknowledged before me this /g day of
• 2005, by as 'y,}.�,'`7_
for lando Ltd. , bility Co.,a Colorado limited liability company.
`titre I band and official seal.
Notary Public
My Commission Expires: 6 --/1-O 5
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