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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 I E '#5Y7 'd SLLB-ET9-OLB 011 6o2Tsaa sa2pol-{ ppol e5Z =BO so BT inc 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) E 'd SLLB-ET9-0L6 011 `u21sau se2poH ppol eS2 :60 SO ST Inr 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.= a •a Stt8-CTS-0tS 011 `u2isaa sa2poH ppol eSe :8o SO 81 inc - t' ...rk- ..► 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 int #Sy9 T 'd SLLB-ET9-OL6 911 °u2Tsa0 sa2poH PPol eTb = TT SO La inc Colorado Secretary of State- Information On File Page 1 of 1 ��e-N Colo ado Secretary of State �•+ld"' 164( `� BUSINESS CENTER wt.ISI• t 7Faarm aeseSetiesiteeM Business.Center Information Center _ Secretary of State Home (t 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 Previous Page 1 Business Center.303 8942200.Fax:303 869 4864•Forms fax back:303 860 6975•e-mail:sgaggsjnagasssataLea " BG66f Search I Contact us I Privacy statement l Terms of use tp://wwwsosstats.co.us/biz/BusinessEntityDetail.do;jsessionid=0000Canq WnBPZSIiukNl TXwiim V a 0e... 6/30/2005 2 -d SLIM-EIS-0GS 311 `u2tsau sa2poH ppol eTf+ = TT so L2 Inc RC ' Cc ,L 67cttyhCc U.4 ait a, (- 111/2_11 CA" :Lx,Cf (I(HA etc CC n.2-CC'l.. ;ice ttc/- G< "-k. d7Zt•fru y) C'1-t iz t�2 EXM18R MF #5Y7 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 ATM%A. 8,o7Lc t persai Casa LAURA ImoLRY "r°a'ua Cakinibis Dnwo R. Lrrn.e dale*adnnnen n a aww a Kure-M. PEneasm Itoackr C. MATrrks+o DARN s. &neeat Jan S.&were OmL!TOP, RG. Hnii_s- AW M. Ensmunn+ Esciwagnsiagagai 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 PRTgn A.erne Last"lane b1CMfetl DAMP R.!Jima goer stoat M. uiiW •11e* ame In%Waft Kant PY*Rosen C.MATnce• ia6oAfYgMled in se risen IX courts DAI@I a.50 CM 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 m A43 te t 1`s'frff., ft : }a :+fir t l ji g �t�k"4� Eynir EZi .::fait i n ' 3 `ii st Ot r _riyi r f c, r, ,, . t 7.719„ 70.377.1kxs t 3' "� t t �t r �, ".- f § tz ' , } <� 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 co I ', m W EXHIBIT 'A' e d LOT 6 OF RECORDED EXEMPTION NO. 2016, SITUATE IN THE SOUTHEAST QUARTER OF SECTION 16. TOWNSHIP 6 NORTH. RANGE 64 WEST OF THE 6TH P.TL.. COUNTY OF WELD, STATE OF COLORADO- rt.ar.a•.• �r LnL),AE W'I�iYv . .....Y�..Pr YQr...r.-Y Y5. ._Y�� s Oa e.4 u.OZ CO ' V: ,V.Cr (A state\ WB �I ' t • aaa".•°'--.: �r-.•a•r... `. 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