HomeMy WebLinkAbout20042517.tiff Dalmar
Page 1 of 1
r Jacqueline Hatch
From: Clayton Harrison [charrison@pickettengineering.com]
'Mt: Tuesday, March 16, 2004 7:52 AM
Jacqueline Hatch
Subject: Dalmar
Jacqueline,
My thoughts now after a good talk with Jason Lilley of KP Kaufman is that we will need to slightly re-configure the road so that it
does not encroach the 150' setback.
The brutal thing about this issue with KPK is that we have been working with them for over a year and we had a gentleman's
agreement with them that once their court case with Overlook was over that they would work with us on this issue. The difference
in this case was that we were talking about a road, not a building; the road was over 80' away from the well and would be a safe
distance for all work, other than re-drilling the existing well; if the well needed to be re-drilled a closure of the road would be
possible as that it would only affect a few homes for a short period of time. However, they have changed their minds and now are
holding firm to their 150' requirement, because they now have precedence and are not about to allow that to slip.
This project started in 2001. Asking for a continuance at this point will be the straw that broke the camels back. In my discussion
with Jason Lilley yesterday, they do not have rights to drill any additional wells and only want to protect the operations of the one
existing well on the site. By re-aligning the road we are able to comply with their requirements and also the counties.
Attached is an exhibit that we created showing how we can re-align the road and the lots to comply with KPK's last minute
requirement.
I'll give you a call shortly to discuss.
Thu..s,
R. Clayton Harrison, PE
Pickett Engineering, Inc.
808 8th Street
Greeley, CO 80631
Phone: 970-356-6362 ext 15
Fax: 970-356-6486
«new Dalmar.pdf»
r--
EXHIBIT
2004-2517
03/16/2004
--�
4-
G 588'37'28"w :332.90•
---- -----r-----r— r r
F _
Ill
y GG��G � ��� �1 y��mil/ L •'3.251 Acres± j
,� I i •
',a,
LOT 6
I 3.404 AEi — 1 If
Ii 1 1 i
i 1 2.544 Acres± i
I I ? 4.371 Acres
± 1 LOT 8 /
!1 Lc LOT 1 Il s
o- 4.109 ACx i
I; 1 1
I i 1 ;'• , 2.608 Acres
LOT4
41 0 2.900 A€±- 1 t� 1 T 9 ;
f. ...2-ACS -
2.843 Acres / r
i 1 2.946 Acres± �
1� LOT 3 V
v
I!5EE'a0 15 w 390.82' / / II��y "Td.'
i .
fill;•.:'
� f..t • 1 ,,/,'// P
i�``�., \11 3.110 A 4// i .,I\�.i
` • LOS,/ D
3/ / 4- 0% 12.797 Acres±
/i/// � C�9 OUiLOT 1
/
//,%;,/ / 14A99 AC*
/ / / N82•14'27"E 1328.41'
OUTLOT 27 / / /
( /
/ /
1.879 ACt /
(OIL&GAS 1 / /
OPERATIONS ! /
AREA) ' !1 £o 1 /
/
', / 1.691 ACx / /
1 /
/ /
/ 'P,'iL41ff
0z // / /
= I. /
/ / / i 100 YEAR FLOOD HAZARD AREA / ,
f // PER FLOOD INSURANCE RATE MAP ; / /
r / / // NUMBER 080255 0850 C. / /
/ / / /
/ II /
,11m[nnranou / X�1'7'� /
5 5•" V c, FCC " __---
587'50.57 'w 385.20
CR 16 1/2
Mar 15 04 07: 39a Pickettt#Engineering, ##rnG 970_355_0486
p . l
FAX ��' Pickett Engineering, Inc.
E 808 8th Street
Greeley, Colorado 80631
P{CKETT
E NCINEER,NC..NC.
Date 3/15/2004
Number of pages including cover sheet 14
Pickett Engineering Proj.No. 01-034
Re: Dalmar Estates
•
To: From:
Jacqueline Hatch R. Clayton Harrison,PE
Weld County Planning
1555 N. 17th Avenue
Greeley, CO 80631
Phone#
Fax # (970) 304-6498 Phone 4. 970/356-6362
cc:
Fax 4 970/356-6486
REMAINS:
—
Kerr-McGee O Urgent ® For your review O Reply
ASAP ❑ Please comment
Kerr-McGee Oil and Gas Surface Use Agreement
•
EXHIBIT
Mar 15 04 07: 39a Pickett#Engineering, #Inc. 970-356-6486
p. 2
SURFACE USE AGREEMENT
This Surface Use Agreement("Agreement") is entered into and made effective this 5 day of December, 2003, between Kerr-McGee Rocky Mountain Corporation ("KMG"), with an
address of 1999 Broadway, Suite 3600, Denver, Colorado 80202, and Dallas L. Schneider and
Marjorie A. Schneider ("Surface Owner"), with an address of 520 Weld County Road 18,
Longmont, Colorado 80504.
A. Surface Owner owns the surface (and a portion of the mineral interest which is
currently under an oil and gas lease) of that certain tract of land in a portion of the Ei 2 of
Section 30, Township 2 North, Range 68 West, County of Weld, State of Colorado, and
as more particularly described on Exhibit A attached to this Agreement (the "Property");
B. Surface ownership of the Property is subject to the rights of the oil and gas mineral
leasehold estate, which a portion of is now owned by KMG;
C. Surface Owner plans to develop the surface of the Property as a residential
subdivision known as Dalmar Subdivision;
D. KM@ currently operates a single natural gas well, known as the Sawdey Gas Unit
42 (the "Existing Well"), and associated flow-lines and production facilities on the
Property, which are all depicted on Exhibit A attached to this Agreement;
E. KMG has the right to undertake further development of its oil and gas leasehold
estate on the Property, including the drilling of additional wells;
F. The parties have entered into this Agreement to provide for the orderly and
cooperative development of the surface by Surface Owner to minimize interference with
mineral production operations and to provide for the orderly and cooperative production
ofrninerals by KMG to minimize interference with surface use and development;
G. The parties have specified in this Agreement the specific locations upon the
Property where mineral exploration and production may occur and where access to
mineral exploration and production facilities may be obtained and where facilities and
pipelines may be required to be located. This Agreement also contains a partial release of
surface rights by KMG and a specific grant by Surface Owner for the use of certain
surface areas;
H. - This Agreement sets forth the parties' rights and obligations regarding the
development of the Property by Surface Owner and KMG's operation and development
of its oil and gas leasehold estate, such rights and obligations to be binding upon the
parties and their successors and assigns.
In consideration of the mutual covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:
PaBc I of I I
Mar 15 04 07: 40a Pickett#Engineering, #Inc. 970-356-6486
p. 3
1. AREAS RESERVED FOR EXISTING AND FUTURE OPERATIONS.
1.1 Under the terms of its oil and gas lease and the applicable regulations of the
Colorado Oil and Gas Conservation Commission (the "COGCC"), KMG has the right to drill
additional wells to bottom hole locations on the Property (hereinafter "Future Wells"). KMG
also has the right to undertake any and all related operations in connection with the Future Wells
and the Existing Well, including, but not limited to, production activities, workovers, well
deepenings, recompletions, fracturing, replacement wells, and re-fracturing. In order to provide
for such, KMG shall be entitled to the use of the areas depicted on Exhibit A (the "Oil and Gas
Operations Areas") for such operations, except the location of Future Wells shall be restricted
and limited to the shaded area shown on Exhibit A as the "Oil and Gas Drilling Area".
1.2 During the term of this Agreement, the Oil and Gas Operations Areas shall be
reserved and utilized for the purposes of drilling all Future Wells, which locations of Future
Wells shall be limited to the Oil and Gas Drilling Area, and for the conduct of any and all related
operations by KMG in connection with the Future Wells and the Existing Weil, including, but
not limited to, drilling and production activities, maintenance, workovers, well deepenings,
recompletions, fracturing, replacement wells, and re-fracturing_ Except as otherwise provided
herein, Surface Owner shall not use or occupy any part of the surface of the Oil and Gas
Operations Areas.
1.3 Except for the Oil and Gas Operations Areas, and including the access roads and
all access and necessary' easements associated with flowlines, gathering lines and pipelines
("ROWs) as provided in this Agreement, KMG shall not use or occupy the surface of the
Property except in the event of an emergency in which case such use shall be temporary.
2. BUILDING RESTRICTIONS; SETBACK REQUIREMENTS.
2.1 Except as provided in Section 5.2 a. below, Surface Owner shall not build,
construct or install any improvements upon any portion of the Property lying within the Oil and
Gas Operations Areas, including, but not limited to landscaping, sprinkler system, fences,
sidewalks, access or haul roads, paved streets, and water drainage and sewer systems, without
the prior written consent of KMG. If, after obtaining such consent and constructing any other
improvements within the Oil and Gas Operations Areas, KMG requests that such
improvements be moved or removed to accominodate KMG's oil and gas operations thereon,
Surface Owner shall be obligated, at Surface Owner's expense, to move or remove such
improvements within thirty (30) days from the date such request is received. KMG shall use
reasonable care in conducting its operations on the Oil and Gas Operations Areas, but shall not
be responsible for damage associated with KMG's reasonable operations to any improvements
constructed by Surface Owner in the Oil and Gas Operations Areas.
2.2 Surface Owner understands and acknowledges that the COGCC has rules and
regulations that apply to the distance between a wellhead and public roads, production facilities,
building units and surface property lines among other things. Surface Owner hereby waives all
setback requirements under the COGCC rules and regulations, and under any other state or local
Pagc2 of11
Mar 15 04 07: 40a Pickett#Engineering, #Inc. 970-358-6486
p. 4
•
setback requirements or other requirements or regulations that are or become inconsistent with
this Agreement or that would prohibit or interfere with the rights of KMG or its successors and
assigns, to explore for and produce the oil and gas in accordance with this Agreement. Surface
Owner understands and agrees that KMG or its successors and assigns may cite the waiver in this
paragraph in order to obtain a location requirement exception or variance under COGCC rules or
from a local jurisdiction consistent with the operations within the Oil and Gas Operations Areas
as contemplated by this Agreement. Subject to the waivers set forth herein and in Section 8,
KMG shall otherwise conduct its operations in compliance with all applicable rules and
regulations of the COGCC. Nothing herein shall operate to limit the Surface Owner's rights to
object to KMG's non-compliance with any other law or regulation.
3. FLOWLINES AND PIPELINES.
3.1 Surface Owner's current development plans may require the relocation of existing
flowlines and/or the existing natural gas pipelines now located on the Property (the "Existing
Pipeline(s)"), which pipelines are operated by KMG. Surface Owner shall enter into a separate
aureernent with KMG regarding the relocation of such Existing Pipelines at Surface Owner's
sole cost and expense. All relocated flow lines and pipelines shall be buried at least 4 feet from
the surface.
3.2 KA'IG or its affiliates, at its sole cost and expense, shall have the right to lay now
flowlines and pipelines within existing easements, and shall also have the right to replace any
and all flowlines, gathering lines and pipelines for gas and liquids, including replacement of any
future lines as provided herein, necessary in connection with KMG's production and
transportation of oil and gas from any wells on the Property. Flowlines and pipelines for Future
Wells will be located in the Oil and Gas Operations Areas and additional rights of way shall not
he required for those lines. To the extent KMG reasonably requires any flowlines or pipelines
beyond the Oil and Gas Operations Areas, Surface Owner shall grant the requested non-
exclusive rights-of way (each a "ROW") needed by KMG for such purposes, provided the
location is mutually acceptable to Surface Owner and KMG. To the extent possible all pipelines
and flowlines will be located under or adjacent to access roads to the Oil and Gas Operations
Areas and production facilities. All pipelines shall be located at a surface depth of approximately
4 feet from the final graded elevation. Flowlines, which are defined as those lines which carry
water or hydrocarbons from the wellhead to a production unit (such as a separator) shall he
bred to a surface depth of at least 4 feet. The construction and burying of additional flowlines,
gathering lines and pipelines shall be at the sole cost and expense of KMG or its gas purchaser
and shall be accomplished in accordance with applicable law. If KMG desires to change the
location of any flow line, pipeline or gas gathering located in a ROW, such relocation shall be
subject to the prior written approval of Surface Owner. Surface Owner shall maintain a
minimum of 4 feet of cover over all pipelines and flowlines during any of Surface Owner's
operations.
3.3 Surface Owner shall be enticed to install, erect or construct within or across any
ROW parallel to existing and/or future flow lines and pipelines of KMG, located outside an Oil
and Gas Operations Area, Surface Owner's own utility lines for water, sewer, telephone and
cable as may be reasonably required for residential development of the Property. Surface
Owner agrees that, except in cases of emergency, Surface Owner will contact KMG at least ten
Page 3 or n
Mar 15 04 07: 40a Pickett#Engineering, #Inc. 570-356-6466
p. 5
(10) business days prior to commencing any trenching or digging activities within a ROW and
that during its installation, maintenance and use of its utilities in any ROW of KMG, it will not
unreasonably interfere with KMG's use and operation of flow lines or other pipelines in such
easements. Surface Owner agrees that all such utilities that are placed in the ground after
KMG's pipeline or flowline shall be placed horizontal to KMG's pipeline or flowline at a
minimum of 7.5 feet from the centerline of the pipeline or flowline, and any such utilities that
cross the ROW shall be placed below KMG's pipeline or flowline and there shall be a minimum
clearance of 18 inches between KMG's pipeline and such utility lines placed in the ground and
crossing the ROW.
4. ACCESS.
4.1 Surface Owner shall at all times provide to KMG non-exclusive access easements,
18 feet in width, and which are sufficient to access the Oil and Gas Operations Areas as depicted
on Exhibit A hereto. Unless shown on Exhibit A hereto, such access shall be mutually agreed
upon by the Parties and shall be of sufficient scope to allow KMG to conduct the operations
contemplated for the Existing Wells and the Future Wells, and shall be built to withstand a
minimum of 26,000 pounds per axle. The access roads to be used by KMG will be those roads
either that are presently in place, future roads which are depicted on Exhibit A, or that are
anticipated to be constructed by Surface Owner at Surface Owner's sole cost and expense as part
of Surface Owner's development of the Property. KMG shall maintain and use the existing
access or future access roads depicted on Exhibit A until such time Surface Owner requests a
change of access. During construction activities on the Property, Surface Owner will not
unreasonably interfere with access to all of KMG's wellheads and production facilities.
5. PRODUCTION FACILITIES AND EQUIPMENT.
5.1 KMG shall have the right to locate, build, repair and maintain tanks, separators,
dehydrators, compressors and other equipment reasonably necessary, appropriate or convenient
for the operation and production of the Existing Well and Future Wells within the Oil and Gas
Operations Areas; provided any new, expanded or relocated facilities shall be restricted and
limi ted to the shaded area shown on Exhibit A as the "Oil and Gas Production Facility Area".
5.2 With respect to KMG's equipment and facilities other than flowlines and
pipelines and access roads:
a. KMG shall install and maintain, at its sole cost and expense, all fences
around Existing Wells and Future Wells in compliance with the rules and regulations of
the COGCC. At its sole expense, Surface Owner may install privacy fencing and/or
landscaping within the Oil and Gas Operations Area to shield the oil and gas facilities
from surrounding view. Installation of such fencing or landscaping by Surface Owner
shall be subject to the prior review and approval of KMG, to ensure that the same do not
impose any undue safety or operational constraints;
b. KMG shall install and maintain, at its sole cost and expense, all gates and
locks necessary for the security of any wells and/or facilities in the Oil and Gas
Operations Areas. Such gates and locks shall be of a type and quality customarily used
by KMG for such purpose; and
Pasoan
Mar 15 04 07: 40a Pickett#Engineering, #Inc. 970-356-6486
p . 6
c. KMG shall paint any production facilities for any wells, including
wellhead guards, with paint that is approved by the COGCC.
6. NOTICE OF FUTURE OPERATIONS.
6.1 KMG shall provide at least seven (7) days prior written notice to Surface Owner
of any operations in connection with the reworking, fracturing, deepening or other operation on
any Existing Well, Future Well or any replacement well; provided, however, that KMG shall
provide at least thirty(30) days prior written notice to Surface Owner of the initial drilling of any
Future Well. Regardless of the foregoing notice requirements, KMG shall have immediate
access to the well site in the event of an emergency.
6.2 The notification of operations shall describe the following:
a. The proposed starting date for the proposed activity;
b. The proposed operations to he performed at the site;
c. The approximate duration of the proposed activities.
6.3 Not less than five (5) working days prior to KMG's entry date on the applicable
Oil and Gas Operations Areas for the operations set fonh in its notice described above, either
1,3,16 or Surface Owner may request an on-site meeting. The purpose of the meeting shall be to
provide further information to Surface Owner of the expected activity and to coordinate site
access, hazards, barricades, restoration or any other issues that affect the use of the Property and
the safety of Surface Owner's development.
7. NOTICES TO HOMEOWNERS AND BUILDERS.
7.1 Surface Owner shall provide on its subdvision plat written notice to all such
builders, homeowners and other buyers of the Property and any homeowners associations Thal:
a. there may be ongoing oil and gas operations in the Oil and Gas Operations
Areas;
b. there are likely to be Future Wells drilled and associated oil and gas
operations taking place on the surface of the Oil and Gas Operations Areas, as well as the
vehicular traffic necessarily associated with such operations; and
c. purchasers of all or a portion of the Property, as successors in interest to
Surface Owner, will be acquiring a proportionate interest in Surface Owner's rights and
obligations under this Agreement, including but not limited to the panting of waivers as
set forth in Section 2.2 hereinabove and Section 19.2 below.
7.2 Such notice shall be deemed to have been given through recordation of a plat in
the real property records of Weld County containing the above information.
Page$ofI
Mar 15 04 07: 41a Pickett#Engineering, #Inc. 970-356-6486
p. 7
8. DRILLING AND COMPLETION OPERATIONS.
KMG shall diligently pursue any drilling operations to minimize the total time period and
to avoid rig relocations or startup during the course of drilling. Subject to the waiver of setback
requirements as set forth above, KIMIG shall conduct its operations in compliance with the
provisions of the Rules and Regulations of the COGCC set forth in Rule 603 and with applicable
law in a good and workmanlike manner.
9. GOVERNMENTAL PROCEEDINGS.
9.1 So long as there is no default under this Agreement by K,MG, Surface Owner
shall not, directly or indirectly, oppose KMG in any agency or governmental proceedings,
including but not limited to the COGCC, Weld County, or other governing body proceedings,
related to K VIG's operations on the Property, including but not limited to drilling, workovers,
well deepeaings and recompletions, provided that KMG's position in such proceedings is
consistent with this Agreement. Surface Owner will provide KMG or its successors and assigns
with whatever written support they may reasonably require to obtain permits from the COGCC
or any local jurisdiction.
9.2 So long as there is no default under this Agreement by Surface Owner, KMG
shall not, directly or indirectly, oppose Surface Owner in any agency or governmental
proceedings, including but not limited to Weld County, or other governing body proceedings,
related to Surface Owner's development of the Property, including but not limited to applications
regarding zoning, platting, subdivision, dedications, subdivision improvement agreements and
development, provided that Surface Owner's applications are consistent with this Agreement.
KMG will provide Surface Owner or its successors and assigns with whatever written support
they may reasonably require to obtain development approvals from the appropriate governing
body.
10. LIMITATION OF LIABILITY, RELEASE AND INDEMNITY.
10.1 No party shall be liable for, or be required to pay for, special, punitive, or
exemplary damages to any other party for activities undertaken within the scope of this
agreement;
10.2 Except as to claims arising out of pollution or environmental damage (which
claims are governed by Section 11 below) or out of other provisions of this Agreement (which
claims shall be governed by the terms of this Agreement), each party shall be and remain
responsible for all liability for losses, claims, damages, demands, suits, causes of action, fines,
penalties, expenses and liabilities, including without limitation attorneys' fees and other costs
associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out
of or connected with each such party's ownership of or operations on the Property, no matter
when asserted, subject to applicable statutes of limitations. Each such party shall release, defend,
indemnify and hold the other party, its officers, managers, agents, contractors, subcontractors,
directors, employees, successors and assigns, harmless against all such Claims. This provision
does not, and shall not be construed to, create any rights in persons or entities not a party to this
Paye6 oflr
Mar 15 04 07: 41a Pickett#Engineering, #Inc. 970-356-6486
p. e
Agreement, nor does it create any separate rights in parties to this Agreement other than the right
to be indemnified for Claims as provided herein;
10.3 Upon the assignment or conveyance of a party's entire interest in the Property,
that party shall be released from its indemnification in Section 10.2 above, for all actions or
occurrences happening after such assignment or conveyance.
11. ENVIRONMENTAL I.NDEMNITY.
11.1 The previsions of Section 10 above, except for Section 10.1, shall not apply to
any environmental matters, which shall be governed exclusively by the following, subject to the
limitations of Section 10.1 above:
a. "Environmental Claims" shall mean all Claims asserted by governmental
bodies or other third parties for pollution or environmental damage of any kind, arising
from operations on or ownership of the Property or ownership of the oil and gas
leasehold interest, whichever is applicable, and all cleanup and remediation costs, fines
and penalties associated therewith, including but not limited to any Claims arising from
Environmental Laws or naturally occurring radioactive material. Enviromnental Claims
shall not include the costs of any remediation undertaken voluntarily by any parry, unless
such remediation is performed under the imminent threat of a Claim by a governmental
body or other third party;
b. "Environmental Laws" shall mean any laws, regulations, rules, ordinances, or
order of any governmental authority(ies), which relate to or otherwise impose liability,
obligation, or standards with respect to pollution or the protection of the environment,
including but not limited to, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.),the Clean Water Act
(33 U.S.C. §§ 466 et seq.); the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the
Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.), the Clean Air Act,
and the Toxic Substances Control Act (15 U_S.C. §§ 2601-2629); or their state
counterparts.
c. Environmental Indemnification. KMG shall protect, indemnify, and hold
harmless Surface Owner, the homeowners association, any lot owner who purchases a lot
from Surface Owner and any other successor and assign of Surface Owner from any
Environmental Claims relating to the Property or oil and gas leasehold thereunder that
arise out of KMG's ownership of the leasehold estate or use of the Property including but
not limited to, oil and gas operations or KMG's ownership and operation of its pipeline
easement or rights-of-way on the Property. Surface Owner shall fully protect, indemnify
and hold harmless KMG from any and all Environmental Claims relating to the Property
that arise out of Surface Owner's development of the Property.
Page 7 of l l
Mar 15 04 07: 41a Pickett4Engineering, *Inc. 970-358-6486
P- 9
12. EXCLUSION FROM INDEMNITIES.
The indemnities of any party herein shall not cover or include any amounts, which the
indemnified party may recoup from any third party, or that for which the indemnified party is
reimbursed by any third party.
13. NOTICE OF CLAIM FOR INDEMNIFICATION.
If a Claim is asserted against a party for which another party would be liable under the
provisions of Section 10 or 11 above, it is a condition precedent to the indemnifying party's
obligations hereunder that the indemnified party give the indemnifying party written notice of
such Claim setting forth all particulars of the Claim, as known by the indemnified party,
including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good
faith effort to notify the indemnifying party within thirty days of receipt of a Claim and shall
provide such notice in all events within such time as will allow the indemnifying party to defend
against such Claim.
14. REPRESENTATIONS.
Each party represents that it has the full right and authority to enter into this Agreement.
Surface Owner specifically confirms its capacity to validly execute the ROWs and easements
provided for herein. KMG 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 hind the KMG
leasehold and operator interests in the property.
15. SUCCESSORS.
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
assi Lms.
16. TERMINATION.
This Agreement shall automatically terminate when KMG's leasehold estate expires or
is terminated, and KMG has plugged and abandoned all wells owned all or in par. by KMG and
complied with the requirements of all applicable oil and gas leases pertaining to removal of
equipment, reclamation, cleanup and all other applicable provisions of the leases and existing
laws and regulations.
17. NOTICES. •
Any notice or other communication required or permitted under this Agreement shall be
sufficient if deposited in U.S. Mail, postage prepaid, addressed to each of the following:
Pages otn
Mar 15 04 07: 42a Pickett#Engineering, #Inc. 970-358-6486 p. 10
If to KMG:
Kerr McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, Colorado 80202
Attention: Director of Lands Denver Basin
If to Surface Owner: -
Dallas L. Schneider
Marjorie A. Schneider
Weld County Road 18
Longmont, Colorado 80504
Any party may, by written notice so delivered to the other parties, change the address or
individual to which delivery shall thereafter be made.
18. RECORDLVG.
This Agreement, any amendment hereto shall be recorded by KMG, which shall provide
the other parties with a copy showing the recording information as soon as practicable thereafter.
19. SURFACE DAMAGES; WAIVER OF PAYMENTS.
19.1 In consideration of the Parties' respective rights, obligations and benefits, as
outlined herein_, this Agreement shall constitute the surface use or surface damage agreement
provided for under the COGCC's Rules and Regulations or under any oil and gas lease covering
the Property.
19.2 The term "surface damage payments" as used herein shall be given the meaning
commonly used in the oil and gas industry. As part of the consideration for this limitation by
KMG, of what would otherwise be the right to make reasonable use of any part of the Property in
the conduct of its operations, and without limiting the applicability of Sections 10 and 11 above,
ILMG shall not be obligated to pay, and Surface Owner hereby waives any right to receive, any
further surface damage payments, license or use fees including all damages provided for under
any oil and gas lease or leases now or hereafter covering the Property, with respect to any
operations conducted within the Oil and Gas Operations Areas or upon access roads, flowlines,
gas gathering pipelines, or other easements used in connection with the Oil and Gas Operations
Areas. KMG may provide a copy of this Agreement to the COGCC or to any local jurisdiction,
- person or entity or any court of law as evidence of this waiver. The waiver of surface damages
provided herein shall include any claim for excessive surface use insofar as the Oil and Gas
Operations Area is used to produce oil and gas from any portion of the Property or other lands
pooled therewith. In the event KMG is ever required to cross, occupy or utilize any part of the
Property other than the Oil and Gas Operations Areas, the access roads thereto or any ROWs
Page 9 0£11
Mar 15 04 07: 42a Pickett#Engineering, #Inc. 970-356-6486
p. 11
used in connection with the Oil and Gas Operations Areas, KMG shall be liable for any and all
damages that may occur as a result thereof.
20. ARBITRATION.
Any controversy or claim arising out of or relating to this Agreement, or the breach
thereof, shall be resolved by arbitration conducted in Denver, Colorado and shall be administered
by the American Arbitration Association under its commercial rules, and judgment on the award
rendered by the arbitrator(s)may be entered in any court having jurisdiction thereof.
21. 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.
22. 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.
25. EXECUTION AND BINDING EFFECT
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, and shall be binding upon and inure to the benefit of the parties, and each of their
respective heirs, executors, administrators, successors and assigns and is executed by the parties
as of the Effective Date set forth above.
26. HEADINGS. The section headings contained herein are for convenience in reference
and are not intended to define or limit the scope of any provision of this Agreement.
27. TIME OF ESSENCE. Time is of the essence in this Agreement.
28. NON-WAIVER. Waiver by either party or of the failure of either party to insist upon
the strict performance of any provision of this Agreement shall not constitute a waiver of the
right or prevent any such party from requiring the strict perfounance of any provision in the
future.
29. SEVERABILITY. Any covenant, condition or provision herein contained that is held to
be invalid by any court of competent jurisdiction shall be considered deleted from this
Agreement, but such deletion shall in no way affect any other covenant, condition or provision
herein contained so long as such deletion does not materially prejudice the Surface Owner or
KMG in their rights and obligations contained in valid covenants, conditions or provisions.
Page 10 orl l
Mar 15 04 07: 42a Pickett#Engineering, #Inc. 970-356-6486 p. 12
30. NO JOINT VENTURE. This Agreement is not intended to, nor shall it be interpreted to
create a joint venture, partnership or any other relationship between the Surface Owner and
KMG, other than that of surface owner and oil and gas lessee, respectively.
The parties have executed the thre ent on the day and year first above written.
KERR-MC
CKY MOU AIN CORPORATION
By:
JAMES P. WAS-ON
Attorney-in-Fact
MAR.IORIE A. SCHNEIDER DALLAS L. SCHNEIDER
^
V ACKNOWLEDGMENTS
STALE OF COLORADO )
CITY AND ) ss.
COUNTY OF DENVER ) yy��
Th .foregung_instrument was acknowledged before me thisI`1,,'day of 1Y k✓ _2003,
by J&MES P ASON as Attorney-in-Fact for Ken-McGee Rocky Mountain Corporation, on
behal fi';nfsuch.corgoir
tiWitness my hand official seal.
tar} Psblio
Q CorritnissionL .
hiv Ccmmission`
STATE OF COLT )
) ss.
COUNTY OF o'-' 1-O an— )
r The foregoing instrument was acknowledged before me this � day of F`"�'
2003, by.DALLAS L. SCHNEIDER and MARJO IDE
Witness my hand and official seal.
(SEAL)
Notary Public
My Co 'scion Expires: t`'.'l 2 ? J
'•.ter.,
r. i P H,'U P A.
GOMM!
ti.•. Poge l l of l l
Mar 15 04 07: 42a Pickett#Engineering, #Inc. 970-356-6486 p . 13
EXHIBIT "A"
Attached hereto and made a part of that certain Surface Use Agreement dated December
18, 2003 by and between Kerr-McGee Rocky Mountain Corporation, Dallas L. Schneider,
and Majorie A Schneider
LEGAL DESCRIPTION
Lot B of Recorded Exemption No. 1313-30-I-RE2293 recorded on February 2, 1999 at
Reception No. 2670877, and being a part of the Northeast Quarter of Section Thirty (30),
Township Two North, Range Sixty-Eight West of the Sixth Principle Meridian, County
of Weld, State of Colorado
•
.Irk
Page 1 of 2
Mar 15 04 07: 42a Pickett#Engineering, ItInc. 970-356-6486 p. 14
Page 2 of 2
OF RRRMCOE£APF,Q USE AGREEMENT
r
/ S:'FikI, r ' "'
559'37 28',4 1332 90
is'° LOT `. \ LOi 7
a S57 ACS I''I I
340 ACx :.. M. .,- III .
Lo ,� L "14111" (');
LOT 5 3 65x
�' 4.11 ACx ^,� \ �.�. ��
0
rc
�� y m ., LOT 4 LOT 9 %/ / -
.., 2t.
.90 AC �R• T 2.56 ACx ,CJs/ ° v.,r. �x
3.08 ACxc.
0+10'_S W 390 2 .. -77'' ,Hr, -j_:----C- (-,A _...
� OT 2. ��!/�
/ A/- 2.7s AC x /., .,,
�_ r! A ; may /
7 ' /% 6t OUTLOT 1
��� ' , ../ ' �4° 2.en Act / I
OUTL0T2 71--,
.IJr �'%.v NBa 4 'e7'E 3 8.41 !�1.83 ACx �6LCC lY T %%". (OIL&GAS /, ,/ -4-144-W.5SL4:11
OPERATIONS �' eI '• ,
AREA) �� ,-_,� „a :� e /
IF LOT I ! -x"^ u—. / /
Ri 3.65A , / / / /
.,.I s _ / / / �/ ,II
HI /�jY o 7 XS ,,,., � °, . . // , /'I
N
NE 1/4 OF . �i1 '' i / /j
6.39 ACx / / ///if////
i
% / '100 YEAR FLCO,. HA'AH0 AREA /" / /
.._�//7;,21-'7:C./
�'/ / PER FLOOD INSJ ANTE RATE MAP I / /
, .. _ / / // NU+BER 08„25/ nSEc C. / �' //
G' // / / / P/ / / / �// / / �/i
I
/ CR 16 1/2 -,,,,, ,.,
r ,k CALHAR E5TATE5 "" ''
mil coat non1 BC 92 1957 PICK I
fR,
� , LAND USE MAP ,n, T 5 l ', y 'T �EN6 NEEQIN6— l
N 1 l INCOR_ ORA D i
A LLNS0IWCR ^'IP 1.. L 'SJL CRS
,.. , .... u .II..S_Jp .». ...a...vv ..
Hello