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HomeMy WebLinkAbout20040108.tiff Weld County Plan- EXHIBIT GREELET 1-FICF 5A MAY I q 2003 R iv U• ✓ S ? E � �/l Arc lei/2,S f/N4 (-Cc %^ cry �-X 'An 14/ 1,,Y", /i/ t4 , S I E t/ el" r c? c hj cc-1— Ire 1-44 � ; ; A, 7 ct A L=eave P: t li;vvt,v,y j ,45- 1-b e h'C - SAiuJ AA ! Gi-M-v€ / 4/1, / �ss f,oCf}t; c /y 1102CtoN' !3/ fcwIvsh;f / e,-/4/ 'AN,r 6J LVr'5tE /4 PACAACAAt'R•cl%A• A:5 led bticcw A, c the i- eA5oiv5 50/- my ("kJ' ec *,ews' , -71 AA AS14;d fl c w/4 let; Ary/ w:// Stye /4 Aid C/t0Se Any w/4 *i2F we /Is -to erc dry, 2.. 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I have met with Mark Campbell of Southwestern Investment Group, LLC, and he was agreeable to all but one of my concerns, which are as follows: I have a large groundwater pond, approximately 3 acres, which is used for fishing, recreation and wildlife. There is a high probability that the lining of the Heit pit will cause a groundwater shadow, which may permanently lower the level of my pond. I requested that some type of French drain or perimeter piping be installed so that the groundwater would be routed around the lined pit to assure that the groundwater table would be preserved at it's present level. EXHIBIT 1 55 On the west side of the property is an area along Little Dry Creek that may or may not be mined. One site plan showed that this area would be developed into open space. I requested that the area not be developed into open space due to the additional traffic and other problems associated with public use. Such an area would be an attractive nuisance to teens and others looking for a `party' spot as well as a permanent cause of additional traffic. I recommended that the area be kept private for wildlife or be leased for duck hunting, which is a compatible use for this area. Due to the limited nature of the resource being mined, we request that the area be mined to its fullest extent with no curvatures of the shoreline or unnecessary setbacks. I further request that the end use of this site should be designated as water storage, agriculture, and rangeland and that the End Use not include any residential development. As I recall, Mr. Campbell was agreeable to all of these recommendations. However we could not reach agreement on the inclusion of an asphalt plant on the site. I can understand why it would be advantageous to have an asphalt plant, but I must oppose the approval of this special use condition. An asphalt plant would put out noxious fumes which much of the time would be up-wind of my house. This combined with the fact that air is many times trapped in this low valley area should raise concern about air quality in the immediate area. I request that the asphalt plant be denied. Thank you for your concern in this matter. • ely, Ro ert Stahl • LINDSEY & BRUCE, P.C. Attorneys and Counselors at Law 730 17th Street,Suite 370 Denver,CO 80202 Telephone: (303)573-5498 Tele owpy: (303)573-5537 Lr gnjnnnl>lAilh: ww.lindseybruce.com M. DAVID LINDSEY n' HC, Jane M. Lawlis ROBERT J. BRUCE `,, 2003 Robbin A.Lego October 16, 2003 VIA FAX AND REGULAR MAIL Weld County Planning Commission c/o Chris Gothman 1555 N. 17th Ave Greeley, CO 80631 Re: USR 1444, Heit Sand and Gravel Mine Dear Commission Members: I am counsel to SW Meadow, LLC, the applicant for a Use by Special Review Permit scheduled for hearing before the Weld CountyPlanning Commission on October 21, 2003 at 1:30 p.m. Yesterday, I received a copy of a letter written to you by P. Andrew Jones, Esq. requesting a continuance of the scheduled hearing. First and foremost, the applicant is prepared to proceed as scheduled. My client's representatives believe that they are entitled to a hearing on the date scheduled and that a delay is unwarranted and improper. As you are well aware, the upcoming hearing is not a court trial and the Colorado Rules of Civil Procedure and cases interpreting such rules do not apply. The orderly administration of good government requires that the hearing proceed on the 21'. Mr. Jones raises two reasons for the requested continuance: (1) a conflict of interest between his firm and his clients and (2) the inability to present a separate traffic study. Neither excuse supports the request. The applicant should not be prejudiced due to a conflict of interest which the applicant did not create and which involves others. There are plenty of attorneys in Colorado who are capable of representing the objecting parties on the scheduled date. The failure to deal with the conflict earlier should not impact my client's right to proceed according to schedule. SW Meadow, LLC will be delayed in its right to a timely hearing given that its consultants have already spent time and money preparing for the hearing. Unlike a criminal case, there is no absolute right to counsel in a quasi-judicial hearing such as the Planning Commission hearing at issue. Whether or not to have counsel is a matter of choice not a matter of right. Regardless of whether the objecting parties participate in the hearing with counsel, they will still have the EXHIBIT 6 °B Weld County Planning Commission October 16, 2003 Page 2 opportunity to present their concerns and evidence to the Commission. The inability of the objecting parties to produce a traffic study by the date of the scheduled hearing does not justify a delay. Note that the neighboring property owners, including the objectors, have been on notice of the proposed mining permit application for nearly a year. A neighborhood meeting was held on January 7, 2003. The permit application was officially filed on February 27, 2003. A second neighborhood meeting was held on April 10, 2003 and a third neighborhood meeting was held on July 1, 2003. Any concern over traffic or a perceived need for an independent traffic study could have and should have been completed before now. While we have no reason to believe that the request to postpone the hearing lacks a good faith basis, it sets a bad precedent. Delay in government is not a good thing. County resources are best utilized by processing land use matters in a prompt and timely manner and not spending more time on these proceedings than is appropriate and justified under the circumstances. SW Meadow, LLC has tried to work with all parities and address their concerns. The application for approval of a sand and gravel mine is complete. It represents a good land use, and the hearing for its recommendation should proceed this coming Tuesday. Please feel free to contact me if you have any questions. Very. ly oe s, l R rtJ. cc: Mark D. Campbell (via fax) Tug Martin (via fax) P. Andrew Jones, Esq. (via fax) ME Banks and Gesso, LLC 720 Kipling St.,Suite117 M® Lakewood, Colorado 80215 (303) 274-4277 C --:rL—ecrtax (303) 274-8329 www.banksandgesso.com October 16, 2003 ?J03 Weld County Planning Department `,' Attn: Chris Gathman I `"t 1555 North 17th Avenue Greeley, CO 80631 RE: Heit Sand and Gravel Mine - USR-1444; Pre-Conditions to Board Hearing Dear Chris: We are in receipt of the Staffs Administrative Review comments and recommendation for the Heit Sand and Gravel Mine. Attached you will find three items that we believe will satisfy three of the conditions stipulated prior to receiving a hearing before the Board of County Commissioners. A signage discussion follows as well, which we hope will address the final condition. The first item is an executed Surface Use Agreement between the Applicant and Kerr- McGee Rocky Mountain Corporation (KMG). KMG is a mineral owner on the site. This should serve to satisfy Condition 1.6 of the Recommendation of Approval. The second item is the approval letter from the Division of Minerals and Geology, which effectively states that they have reviewed the mine and reclamation plans and found them to be in accordance with the State's rules and regulations regarding the extraction of sand and gravel within the State of Colorado. As part of their approval process, the Division reviewed and approved the Groundwater Impact Analysis and subsequent Monitoring and Mitigation Plan for the project which was prepared by Wright Water Engineers and which the County is in possession of. We believe that the Division's review and approval of the Monitoring and Mitigation Plan demonstrates that "adequate attempt has been made to mitigate property owners concerns in regards to well impacts" (Condition 1.C of Recommendation for Approval). The third item is a letter from Lupton Meadows Ditch Company, which states that they have reviewed the plans and have two concerns. The Applicant commits to the two stipulations expressed in the Lupton Meadows letter, which should satisfy Condition 1.D of the Recommendation for Approval. Signage at the site will include one sign that will be located just inside the property on the north side of the access road. The sign will be 3' tall by 4' wide and will include the name of the operation, the Division of Minerals and Geology permit number, and a contact phone number and address. The sign will be posted on two 4" x 4" posts and will not be lighted. Hopefully this information is sufficient to satisfy Condition 1.A of the Recommendation of Approval. If the County requires more detailed information about the sign, please let us know so that we can supply whatever is needed to satisfy this condition in a timely manner. EXHIBIT If you have any questions about anything discussed herein, please don't hesitate to contact me at 303-274-4277. Thanks. Sincerely, Tug a n Banks and Gesso, LLC Cc: Project File Mark Campbell, SW Meadow LLC Bob Bruce, Applicant Attorney Attach: Kerr-McGee Agreement Lupton Meadows Ditch Letter DMG Approval • Oct • 15. 2003 4:35PM No•9010 P. 2/15 i uiul iuiiu u�iIo In!ill!IIII Il!IIII III 11111 IIII IIII 0 8009!00 0510!/200$ 04:24P d Doonb,00 1 of 14 R 71.00 D 0.00 $tore Moreno on t RecoMor SURFACE USE AGREEMENT This Surface Use Agreement("Agreement)is made this ILI day of February,2003,and is between KERR-McGEE ROCKY MOUNTAIN CORPORATION C'KMRMC"), a Delaware corporation, successor to HS RESOURCES,INC.and KERR-McGEE GATHERING,LLC("KMG"),formerly known as HS Gathering L.L.C., both with an address of 1999 Broadway,Suite 3600,Denver,CO 80202,and Heit Farms,Ltd.(variously referred to herein as"Owner"or"Surface Owner"),with an address of c/o Southwestern Investment Group,LLC,333 W.Hampden Avenue 0810,Englewood, CO 80110. A. Owner is the current surface owner of a parcel of land located in the Southeast'/.of Section 13,Township 2 North,Range 67 West,Weld County,Colorado("Property"), more particularly described in Exhibit A attached hereto and incorporated herein by this reference. B. Surtbce Owner is subject to the rights of the oil and gas mineral estate of which a portion is now owned by KMRMC; C. Owner intends to apply for and obtain mining permits for a sand and gravel mining and processing operation known as the"Heft Sand and Gravel Mine"("Mine"); D• KMRMC currently operates and has the right to deepen,recomplete or rework the existing wells ("Existing Wells") on the Property and drill new wells ("Future Wells")on the Property. E. This Agreement sets forth the parties' tights and obligations regarding the relationship between the development bf the Property by Surface Owner and KMRMC's operation and development of its oil and gas leasehold estate. 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. EXISTING OIL AND GAS DPERATIONS ARE RESERVED. Surface Owner shall provide KM]tMC no less than a 300 X 350 foot area around each Existing Well (the "Existing Oil and Gas Operations Areas") as depicted on Exhibit A attached hereto for the Existing Wells and for any operations conducted by ICMRMC in connection with any Existing Wells,including,but not limited to,lease operating activities, workovers,well deepenings,recompletions and fracturing. 2. FUTURE WELLS AND FUTURE OIL AND GAS OPERATIONS AREAS. Pursuant to the Colorado O11 and Gas Conservation Commission ("COGCC") rules and regulations,KMRMC has the right to develop,drill and operate additional oil and gas wells(each,a I 111111111111011tiim00 �lo iiilIIII"�II��tyy"ll'IIu vu Na•90I0 P . 3/15 2 el 14 R 71.00 0 0.00 Sieve Moreno Work a Resarder "Future Well")on the Property,including Future Wells which produce from or drain lands other than the Property (which lands are pooled with portions of the Property) at the following drilling locations: a square 400' X 400"area, the center of which is in the center of each quarter-quarter section and a square 800'x 800",the center of which is in the center of each quarter section(each,a "Future Vertical Well She"). Notwithstanding the foregoing,Surface Owner shall have the right to elect to require that KMRMC directionally drill any Future Well from a location within one of the designated Existing or Future Oil and Gas Operating Areas depicted on Exhibit A,by timely fWfilling the requirements of either Section 2.A or 2.B. A: If KMRMC proposes to drill a Future Well on the Property prior to the time Surface Owner has received all necessary permits for its Mine from the State of Colorado Division of Minerals and Geology ("DMG") and from Weld County, Colorado, Surface Owner may elect to require KMRMC to drill the proposed Future Well within an Existing or Future Oil and Gas Operations Area, by timely doing the following: 1. Within 15 days after Surface Owner's receipt of a written notice from KMRMC that it Intends to drill a Future Well on the Property,Surface Owner shall deliver written notice to KMRMC advising that it has elected to require KMRMC to directionally drill the proposed Future Well from one of the Existing or Future Oil and Gas Operations Areas; and 2. Within 15 days after the delivery of Surface Owner's written notice of election to require directional drilling,Surface Owner shall deliver a payment of ollarsampto KMRMC for such Future Well if it elects to require KMRMC to directionally drill from one of the Existing or Future Oil and Gas Operations Areas. If, but only if, Surface Owner timely complies with the requirements of Sections 2.A.1 and 2.A.2, KMRMC shall agree to confine its operations related all Future Wells to those portions of the Property designated as Existing or Future Oil a.'d Gas Operations Areas, including those access roads and all access and necessary easements associated with flowlines, gathering lines and pipelines. Surface Owner also agrees that, even if it has timely complied with the requirements of Sections 2.A.I and 2.A.2,KMRMC may make reasonable emergency,incidental or temporary use of portions of the Property not designated as Existing or Future Oil and Gas Operations Areas,provided such uses do not materially interfere with the operations of Surface Owner's Mine. KMRMC shall be responsible for any damages it causes to portions of the Property not designated as Existing or Future Oil and Gas Operations Areas. B. Surface Owner may also elect to require KMRMC to drill one or more Future Wells within an Existing or Future Oil and Gas Operations Area, by timely doing the ��f III 111111111 N o•9 010 P. 4/15 8 � .00 p 026611960 06/06/110 V elm 1 Wed CI le 4 Recorder following: 1. Delivering a payment ofadollars fummo to KMRMC within 10 days after receiving all necessary permits for its Mine from the DMG and Weld County, Colorado, if such plans to not provide for Future Vertical Well Sites. If requested,KMRMC shall consult with Surface Owner and assist it in determining whether a proposed mining permit covers some or all of a Future Vertical Well Site, If, but only if, Surface Owner timely complies with the requirements of Sections 2.8.1 outlined above, KMRMC shall agree to confine its operations related to all Future Wells to those portions of the Property designated as Existing or Final Oil and Gas Operations Areas, including those access roads and all access and necessary easements associated with flow lines,gathering lines and pipelines, Surface Owner also agrees that, even if it has satisfied the conditions in Sections 2,8.1, KMRMC may make reasonable emergency, incidental or temporary use of portions of the Property not designated as Existing or Future Oil and Gas Operations Areas, provided such uses do not materially interfere with the operations of Surface Owner's Mine. KMRMC shall be responsible for any damages it causes to portions of the Property not designated as Existing or Future Oil and Gas Operations Areas. 3. ACCESS. a. Surface Owner shall at all times provide to KMRMC no less than a 30 foot wide easement for access to the Existing and Future Oil and Gas Operations Areas. KMRMC shall maintain access roads at its sole cost during the period of time that KMRMCconducts operationsron the Property using such access. b. Access to Existing and Future Oil and Gas Operations Areas may be changed by mutual agreement of Surface Owner and KMRMC provided,however,all costs and • expenses of the relocation shall be borne by Surface Owner if such change is requested by the Surface Owner and by KMRMC if such change is requested by KMRMC. c. Surface Owner shall maintain and keep any access jointly used by Surface Owner and KMRMC in good condition and repair,however,if KMRMC causes damage to a road, KMRMC agrees to promptly repair any damage which it caused which is a direct result of its use of the road. Neither KMRMC, nor Surface Owner shall unreasonably interfere with the use by the other party of access roads. 4. BATTERIES AND EQUIPMENT(PRODUCTION FACILITIES), KMRMC shall have the right to locate, build, repair and maintain tanks, separators, dehydrators,compressors and other equipment reasonably appropriate for the operation and production of any Existing or Future Wells within the Surface Facilities Area shown on Illlll 11111uw1111ii iiiollllllllllllllllll(1111 No• 9010 P . 5/15 IONS IC!0V2003 04:2Sf Weld County, CO 4 of 14 N 71.00 D 0.00 Stew Moreno Clerk A Recorder Exhibit A and in any of the Existing and Future Oil and Gas Operations Areas. 5. FLOWLINES AND PIPELINES. • a. KMRMC and KMG shall have the right to lay flowlines and pipelines,which to the extent possible will be located under or adjacent to access roads to the Existing and Future Oil and Gas Operations Areas. All pipelines shall be located at a surface depth of approximately 48 inches 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 be buried to a surface depth of at least 48 inches. The construction and burying of flowlines and pipelines shall be at the sole cost and expense of KMRMC or its gas purchaser. b. Surface Owner will not allow any extraction to occur, using as a baseline the the surface of the original ground as of the date of this Agreement, closer than 25 feet from any flowline or pipeline or pipeline. c. Surface Owner shall not allow any stockpile of soil exceeding 5 feet in depth to be placed over any flowline or pipeline. d. When crossing KMG pipelines with heavy equipment,like earth moving.equipment, Owner will maintain a minimum of four foot and a maximum of 6 foot of dirt coverage, in addition to the existing cover over any flowline or pipeline, When crossing KMG pipelines with trucks and lighter equipment, Owner will maintain a minimum of two foot and a maximum of 6 foot of dirt coverage,to the existing cover over any flowline or pipeline. e. The depth of cover over the KMO flowlines or pipelines shall not be reduced or drainage altered without KMG's written approval. f. Any utility crossing must be a minimum of 18"inches beneath KMG flowlines and pipelines. g. Parallel utilities must maintain a minimum often foot separation,unless KMG grants a lesser distance of separation. Owner will request that all utility companies contact KMG prior to laying lines parallel to KMO flowlines or pipelines. h. Construction of any permanent structure with KMO's flowline or pipeline easement is not permitted. i. Planting of trees and shrubs is not permitted on KMO's flowline or pipeline easement. j. A foreign pipeline shall not run parallel to KMO's flowlines or pipelines within KMG's easement without written permission from KMG. 0ct• 15. 2003 4:3141No•9010 P• 6/15 Illlu Iln IIINII 111111N mull lII��u 1111!M it 8009900 05/0812008 0425P d bounty, CO 0 of 14 R 71.00 b eM0 Stays Moreno Clerk d Recorder k. Owner shall understand that KMG, per federal law, must mark the routing of its underground facilities with aboveground pipeline markers and maintain those markets. Markers will be Installed,and maintained,at every point the pipeline route changes direction and adequate markers will be installed,and maintained,on straight sections of pipeline to insure the safety of the public, contractors, KMG personnel and KMO facilities. I. In the event that Owner does not maintain the above standards or damages any KMG flowlines or pipelines, or other KMG facilities, while conducting its mining operations,Owner shall reimburse KMO from the cost of relocation,replacement or repair. 6. NOTICE OF OPERATIONS. KMRMC shall provide at least seven days' prior written notice to Surface Owner of any operations in connection with the reworking,fracturing,deepening or other operation on any wells;provided,however,that KMRMC shall provide at lease 60 days'prior written notice to Surface Owner of the initial drilling of any Future Wells. Regardless of the foregoing notice requirements,KMRMC shall have the immediate access to the Existing and Future Oil and Gas Operations Areas in the event of an emergency. The Notification shall describe the following: a. The proposed starting date of the proposed activity; b. The proposed operations to be performed at the site;and c. The approximate duration of the proposed activities. Not less than five working days prior to KMRMC mobilization on the applicable Oil and Gas Operation Areas, either KMRMC or Surface Owner may request an on-site meeting. The p;rpose of the meeting shall be to inform Surface Owner of the expected activity and to coordinate site access,hazards, barricades,or any other issues. 7. NOTICE TO HOMEOWNERS AND BUILDERS, Surface Owner shall furnish all buyers of the Property with a plat or map showing the access roads,the Existing and Future Oil and Gas Operation Areas,production facilities and other related facilities. In addition, the Surface Owner shall provide notice to all builders, homeowners and other buyers of any portion of the Property front Surface Owner that: a. There may be ongoing oil and gas operations and production in the Existing and Future Oil and Gas Operation Areas on the surface of the Property; . Oct• 15. 2003 4:37PM No•9010 P. 7/15 I nllll VIII 1111111 INI IIII IINIII IIIII 1111111th IIII 8068168 061061!001 04188 Weld County, CO e of 14 R 71.00 D 0.00 stove Moreno Clerk 8 Raeors b. There may be additional wells drilled on the Existing and Future Oil and Gas Operations Areas; and c. Purchase of portions of the Surface Owner's Property,as successors in interest to the Surface Owner, will be acquiring all of the Surface Owner's rights under this Agreement and assuming these obligations undertaken by the Surface Owner pursuant to this Agreement, including, but not limited to, the waiver provisions provided in Section 9 below. 8. DRILLING AND COMPLETION OPERATIONS. KMRMC shall endeavor to diligently pursue any actual drilling operations to minimize the total time period and to avoid rig relocations or startup during the course of drilling. Surface Owner waives any objections to continuous (i.e., 24-hour) drilling operations. KMRMC shall conduct its operations in compliance with the provisions of the rules and regulations of the COGCC set forth in Rule 603, subject to the setback waivers provided in Section 9 below. 9. EXTRACTION IN VICINITY OF OIL AND GAS OPERATIONS; SETBACK REQUIREMENTS. Unless otherwise mutually agreed to in writing by the parties,Surface Owner will not allow any extraction or fill,using as a baseline the surface of the original ground as of the date of this Agreement, within a radius of 150 feet from the center of any wellhead, without first submitting in writing to KMRMC 60 days prior to beginning such activity a plan acceptable to KMRMC for interim emergency procedures to include satisfactory access of a workover rig and emergency vehicles. Upon conclusion of the extraction,Surface Owner will fill and level the affected Existing or Future Oil and Gas Operations Areas within no less than a 350 foot X300 foot area around the wellhead. In no event shall Surface Owner mine or extract ' any portion of an access road,or within 80 feet of any wellhead or 50 feet of any production equipment,such as oil storage tanks and separators. Surface Owner will not locate inhabited buildings within 50 feet from the outer boundary of Existing and Future Oil and Gas Operations Areas. Since Future Wells may be located at any location within any Future Oil and Gas Operations Area, Surface Owner waives the 150-foot setback requirement provided in Rule 603 a. (2) of the COGCC rules and regulations insofar as subsequent development may create new surface property lines within 150 feet of any Existing or Future Oil and Gas Operations Area. In the event the high density area rules become applicable to any Future Wells, Surface Owner also waives the high density set back requirements in Rule 603 b.of the COGCC rules and regulations. The waivers provided herein shall be binding upon the successors and assigns of Surface Owner and shall benefit ICMRMC, its successors and assigns under the existing oil and gas leasehold estate. 111111 ii'iiii"'iii mi iiuill I�h Ifl24P Mid cun1y111111111(1N No.9010•9 010 P• 8/15 0050050 05/00/20087 of 14R Ca00 Novo Moreno Cork CO Recorder 10. DEVELOPMENT PLANS. Surface Owner has provided herewith complete copies of the proposed Pre-Mining Plan, Mining Plan and Reclamation Plan. KMRMC has no objections to said plans as submitted as of the date hereof. ICMRMC will not oppose such plans before any governmental agency so long as the contemplated mining activity is materially consistent with such plans and this Agreement. In the event any such plans are amended or revised, Surface Owner shall promptly supply to KMRMC a copy of such amendments or revisions. This acceptance by KMRMC in no way waives KMRMC's rights in this Agreement or obligations of Surface Owner under the terms of this Agreement. Surface Owner acknowledges that KMRMC may conduct oil and gas activities within the Future Vertical Well Sites or the applicable Oil and Gas Operations Areas as provided herein and neither shall oppose KMRMC before any agency or governmental proceeding if such oil and gas activities are proposed and carried out in accordance with the terms of this Agreement. 11. LIMITATION OF LIABILITY,RELEASE AND INDEMNITY. a. NO PARTY SHALL BE LIABLE FOR,OR BE REQUIRED TO PAY FOR, SPECIAL,PUNITIVE,EXEMPLARY,INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES TO ANY OTHER PARTY FOR ACTIVITIES UNDERTAKEN WITHIN THE SCOPE OF THIS AGREEMENT; b. Except as to claims arising out of pollution or environmental damage(which claims are governed by Section 12 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 arising out of those 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 or operations on the Property, no matter when • asserted, subject to applicable statutes of limitations. Each party shall release, defend, indemnify and hold the other parties, their officers, 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 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; c. KMRMC shall not permit any liens to be filed on or otherwise attach to,the Property, and in the event any such liens are filed by a person pursuant to any statute or any lien attaches by operation of law or otherwise, KMRMC shall take all necessary action, at its sole cost and expense, to have such lien discharged and released as promptly as practicable,except that KMRMC shall have the right to file an operator's lien against other owners of the oil and gas leasehold interest to recover amounts owned to KMRMC;and 15. 20031 4: II1111111011111111111I3MI IIIII 1111 I�tIII No.9010 P. 9/15 !000100 88/0811003 04W Weld County, CO 6 of 14 11 71.00 C 0.00 Stew Monne°lark a Recorder d. Upon the assignment or conveyance of a party's entire interests in the Property,that party shall be released from its indemnification in Section 11.6 above,for all actions or occurrences happening after the assignment or conveyance, 12, ENVIRONMENTAL INDEMNITY. a. The provisions of Section 11 above,except for Section 11.a, shall not apply to any environmental matters,which shall be governed exclusively by the following,subject to the limitations of Section 11.a above; b. "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 Claims shall not include the costs of any remediation undertaken voluntarily by any party,unless such remediation is performed under the imminent threat of a Claim by governmental bodies or other third parties; c. "Environmental Laws"shall mean any laws,regulations,rules,ordinances,or the 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 Clear Air Act,and the Toxic Substances Control Act(15 U.S.C. §§2601-2629); and d. "Environmental Indemnification." KMRMC shall filly protect,indemnify,and hold harmless Surface Owner and any lot owner who purchases a lot from Surface Owner from any Environmental Claims relating to the Property or oil and gas leasehold thereunder that arise out of its ownership and operation of the applicable Oil and Oas Operations Areas. Surface Owner shall fully protect, indemnify and hold harmless KMRMC from any and all Environment Claims relating to the Property that arise out of their development of the Property. 13. EXCLUSION FROM INDEMNITIES. The indemnities of any party herein shall not cover or include any amounts for which the indemnified party may legally recoup from other third party owners without judicial process, or that for which the indemnified party is reimbursed by any third party. The indemnities in this Agreement shall not relieve any party from any obligations to third parties. • ` Oct . 15. 2003 4:38PM . I 111100 Mill 111111111111111111 N o•9 010 P• 10/15 MONO 0510612003 04:NP Weld Coenb,00 9 al 14 1171.00 0 0.00 Stew Moreno Clerklieeorder 14. 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 11 or 12 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 was a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within one month of receipt of a Claim and shall affect such notice in all events within such time as will allow the indemnifying party to defend against such Claim and no later than three calendar months after receipt of the Claim by the indemnified party, 15. REPRESENTATIONS. The parties represent to one another that each one has the full right and authority to enter into this Agreement. KMRMC does not represent that it has rights to settle matters for the mineral owners in the Property. KMRMC only has rights as a mineral lessee and this Agreement only pertains to such rights as KMRMC may hold. 16. SUCCESSORS. The terns, covenants, and conditions hereof shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns;provided,as to KMRMC, successors and assigns shall be deemed limited to lessees under the oil and gas lease which KMRMC owns. The rights and obligations provided in this agreement shall benefit and burden Surface Owner,its successors and assigns. 17. TERM. This Agreement shall become effective when it is fully executed and shall remain in hill • force end effect until KMRMC's leasehold estate expires or is terminated,and KMRMC has plugged and abandoned all wells 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. When this Agreement ceases to be in full force and effect,the parties shall execute any and all releases necessary to evidence the fact that this Agreement shall no longer apply to the Property. 11 iii im2003 i m 4:38PM Mu 11111 ll IIIII Minn N°.9010 P. 11/15 3050050 05100/2008 0420P Weld County, CO 10 of 14 R 71.00 0 0.00 Steve Moreno Clerk&Recorder 19. 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: jf to ICMRNIC: Kerr-McGee Rocky Mountain Corporation 1999 Broadway, Suite 3600 Denver,CO 80202 Attention: Denver Basin Land Manager If to Surface Owner: do Southwestern lnvesteoent Group,LLC 333 W.Hampden Avenue#810 Englewood,CO 80110 and Heit Farm,Ltd. do Southwestern Investment Group,LLC, 333 W.Hampden Avenue#810, Englewood,CO 80110 Any party may, by written notice so delivered to the other parties, change the address or individual to which deliver shall thereafter be made. 20. RECORDING. This Agreement,any amendment hereto,and any release entered into pursuant to Section 17 above, shall be recorded by KMRMC, which shall provide the other parties with a copy " showing the recording information as soon as practicable thereafter. 21. ARBITRATION. Any controversy or claim arising out of or relating to this Agreement,or the breach thereof, shall be resolved by arbitration adnvnistered.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. 22. APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. 23. ENTIRE AGREEMENT. Oct• 15. 2003 4:39PM No.9010 P. 12/15 111110 IINI1111111IIIIIIII1111IIIII IIIINI11IIIIIII 11 of 14 R 71.00 0.05/00/2003 04:20P 00 Stew Matins County, 8 Reorder This Agreement sets forth the entire understanding among the parties hereto regarding the matters addressed herein,and supersedes any previous communications,representations or agreements,whether oral or written. This Agreement shall not be amended,except in written form signed by all parties. The parties have executed this Agreement on the day and year first above written. KERR-McGEE ROCK - TAIN CORPORATION, a Delaware co. . ' n, By: C . J ES t T• ttorney •act KERR-McGEE GATHERING LLC, a Colorado limited liability company By: Kerr-McGee Rocky Mountain Corporation, Its sole memb By: t� AMES SO Attorney-i.-^, t Surface Owner: Helt Farms, Ltd. By: .4 Name: Title: /44 STATE OF COLORADO ) CITY AND )SS. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this22 day of F ,2003,by JAM'' -a-A1— eN as Attorney-in-Fact for KERR-McOEE ROCKY MOUNTAIN M! CO:- re—Aii+ . ' claware corporation,on behalf of that corporation. if Witness my and official seal. 044 VeCaratela bnee1 Oct • 15. 2003 4:39PM No•9010 P. 13/15 111111111111 IIIIIA 111111111111111 11111 III 11111111 IIII CO 12 Of00105/2003 t 71Q 00�D 0 0O Iltr d ono ds*&Recorder Notary Public My commission expires: STATE OF COLORADO ) CITY AND )SS, COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this day of�,2003,by JAMES P. WASON, as Attorney-in-Fact for KERR-McGEE ROCKY MOUNTAIN CORPORATION, the sole member of KERR-McGEE GATHERING LLC, a Colorado limited liability com.any,on behalf of that company. 4. ..d d official seal. ( , . F Jr; otary Public ', sti r. -- M " ' •'• s. ,'a44°1/D lQ rS STATE OF COLORADO ) ~�l I l t'' r / u : 7, 11 CITY AND )SS, ; „ . COUNTY OF DENVER ) " t •'r" N r, • •• •` t.•., y, — The foregoing instrument was acknowledged before me this day of Feb � Lebnyhte �' T-R_,T s1 E=R Z February',2003,by Colorado corporation, 'as forrTy FAz�YI,ArT rporadon,on behalf of that corporation. Witness my hand and official seal. (SEAL) , No ublic My commission expires: A 3 - 1- .9-6 a 4/ 1111111111111111,1111111111'iI1111110liiiI II 11111 No.9010 P. 14/15 • I'I 18 ofIt71,0000 D 00 teve Mae d rtrtinao Olak!Recorder Exhibit A: Kerr McGee Surface Use Agreement; Least Description of the Pr000rty Lot 4 (in the S1/2 of the NE1/4); Lot 5 (in the N1/2 of the SE1/4); and Lot 6 (in the N1/2 of the SE1/4); all in Section 13, Township 2 North, Range 67 West of the 6th P.M., County of Weld, State of Colorado; Platted as Lupton Meadows Land Co., Division No. 1. Also, A strip of land 100 feet wide, being 50 feet wide on each side of the centerline of the Denver, Laramie and Northwestern Railway Co. (formerly a Wyoming Corporation), as originally located over, across and through the NW1/4 of the SE1/4 of Section 13, Township 2 North, Range 87 West of the 6th P.M., County of Weld, State of Colorado, said centerline being more fully described as follows: Beginning at a.point on the south line of said NW1/4 of SE1/4 of said Section 13, a distance of 465 feet, more or less, east of the SW corner of said NW1/4 of SE114 of send Section 13; thence N 7 Degrees 58' W to a point on the north One of said NW1/4 of SE1/4 of said Section 13, a distance of 270 feet, more or less, east of the NW corner of said NW1/4 of SE1/4 of said Section 13, (being a portion of the strip of land described in that certain deed recorded In Book 314 at Page 440). Excepting therefrom a tract of land conveyed to Weld County by deed recorded June 12, 1914 In Book 393 at Page 416: Also excepting therefrom a tract of land conveyed to Meadow Island Irrigation Company No. 1 by deed recorded January 23, 1987 in Book 577 at Reception No, 1499388. Uot.1 . 20113 4:39PM No•9010 P. 15/15 1111111111111111111111111111111111111111111111111111111 14 459050 01106/40011 00 0 04101 000 Sin,MorreCount/in o CI,nrk&Recorder ii '�i d • • 1 lillS 4 t II: • Ill 1' ! r, sg ' T 1 1 II i,i . '°' ^� ~ - 1 • I Itiii ' ! I , ! I o • 1ii • I '. 1I ! , IIII 1 > ; l i! 11 I I I II ® EI1p1p'f�piflfp'iillllppIslllp9p frl , IG illf p l Ills Iloilo IIll llllr h1I'i I I'° '� I I I I I I 1 Iles A li r `5 ,.'::r (le 1 1 I >� J. F HI N is I Ili l'p. I b 1 L{r E: iiitl II' I' ! I 9 — 0CT-16-03 13:26 FROM-Colorado Divlelon of Minerals A Geology ♦13030663667 T-666 P.001/002 F-090 STATE OF COLORACO DIVISION Of MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman st.,Room 215 C O ..O RAD O Denver,Colorado 90203 DIVISION OF Phone:(303)866-3567 MI VE cRA L S FAX:(3oi)832.8106 G E O L O G Y RECLAMATION-MINING SA-!TT.SCIENCt October 16,2OO3 ant OI ens Mr.Mark Campbell Cover or SW Meadow,LI-C Graf Wakher 333 W.Hampden Ave.,Ste.81O r"""'Ye Director Englewood,CO 80110 Banal W.c°"any Drn,«A Director I ne Magee File No.M-2OO3-016,Heft Sand and Gravel Mae, 112c Decision Letter-Conditions,Flnanc ai ink Performance Warranty Request-Construction Material Operation Dear Mr.Campbell: On September 24, 2003, the Division of Minerals and Geology approved your 112c mining permit applica ion. The conditions to the approval are noted below: Stipulation No. Description 1. The Operator has submitted its proposed mining plan to Weld County for review of potential floodplain impacts from the mina The Operator will implement any floodplain requirement imposed by Veld County resulting from this review as part of its mining plan- 2, The Operator will implement the groundwater monitoring system as outlined in the Wright V'ate* Engineers, Inc. report, titled "Groundwater Monitoring and Mitigation Plan for Heit Aggregate Rest urce Operation, Weld County,Aquatic and Wetland Nursery and Coyle Property?and as defined in adequacy re iew. At least 16 months of data will be collected prior to initiating mining activities and/or slurry wall installation 1 t the Heit Mine. Based on analysis of collected data,an augmentation trigger mechanism will be proposed to MG in the form of a Technical Revision to the permit and approved by DMG prior to initiating mining and slurry wall activities at the site. The related information must include specific augmentation parameters as to volum es of water involved,times of year for delivery,and the length of time augmentation will occur. 3. A reportable spill is a spill of any toxic or hazardous substance (including spills of petroleum products) within the mined land permit area reportable to any Division of the Colorado Department of F ablic Health and the Environment, the National Response Center,the Colorado Emergency Planning Commission,any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Minerals and Geology(DMG) of a reportable spill within the r lined land permit area using the same timcframe required by the permit, license, notice, statute, rule or regu ation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be FAX d to: Minerals Program Supervisor,Division of Minerals and Geology,FAX(3O3)832-81O6. The FAX shall incl Ade a callback number of a responsible company official for DMG staff to use a contact_ The amount of financial warranty set by the Division for this operation is 51,O52,152.OO. You must sun mit a financial warranty in this amount and a performance warranty in order for us to issue a permit PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE O of Colorado Ea Sala*satete\Ttno,g7 Is,eet flks'OLK INA-NWIMt"$ lga I geacigteJA93816 10224''AM.der Geological Survey 0CT-18-03 13:28 FROM-Colorado Division of Minerals & Geology +13098663567 T-058 P.002/002 F-030 ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. If you have any questions,please contact me. Sincerely, es"; .Pickford Environmental Protection Specialist Enclosure cc: Paul Gesso,Banks and Gesso,LLC I c000cumca..a scm soRsto i s.uuv\7a,00nin r,wrr.w Fanwt,cnu4-Ar-Iv_M2o03016 KAe}amra16 rozxa1 AM doe LUPTON MEADOWS DITCH COMPANY PO Box 305 Ft Lupton, CO 80621 Phone 970 785-2147 Fax 970 785-6368 October 14, 2003 Banks& Gesso, LLC c/o Tug Martin 720 Kipling St Suite 117 Lakewood, CO 80215 Dear Tug, This letter is to inform all concerned that the Board of The Lupton Meadows Ditch Company has reviewed the plans for the Heit Sand and Gravel Mine. The Board's concerns with the plans were the set back from our ditch for the slurry wall and any crossing specs for ingress and egress points. After my conversation with you on the phone October 6,2003 I assured the Board you were committed to working out these details. The Board has authorized the following statements regarding the plans. 1. The plans are adequate as long as there is a minimum set back of 20'(twenty feet) from our ditch to any slurry wall construction and an adequate access road is maintained for the ditch company's use. 2. Any ditch crossings construction specifications shall be reviewed and approved by the Board before any work is allowed. Any culverts shall be a minimum of a 4'(four foot) squash. type with appropriate construction methods used. Sincerely, Howard (Corky) Cantrell, Lupton Meadows Ditch Secretary, ft::k.C,‘AH r\ V s v • BEFORE THE MINED LAND RECLAMATION BOARD STATE OF COLORADO FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER IN THE MATTER OF THE APPLICATION OF SW MEADOW, LLC FOR A 112c RECLAMATION PERMIT, FILE NO. M-2003-016. THIS MATTER came before the Mined Lands Reclamation Board ("Board") on September 24, 2003 in Denver, Colorado for a hearing on the Section 112c application for a reclamation permit by SW Meadow, LLC ("Applicant") in accordance with C.R.S. § 34-32.5-114. Robert Bruce, Esq. appeared on behalf of the Applicant. Objectors Robert and Lavenia Temmer, and Neil and Laura Coyle appeared on their own behalf. Kate Pickford appeared on behalf of the Division of Minerals and Geology("Division"). The Board, having considered the parties' presentations and having been otherwise fully informed in the premises,hereby enters the following findings of fact, conclusions of law and order: 1. The Applicant seeks a Section 112c reclamation permit for a 102 acre surface sand and gravel pit known as the Heit Pit located in Section 13, T2N, R67W, 6th P.M., Weld County, Colorado. 2. The proposed permit area is located west of the South Platte River, three miles from Fort Lupton. The Applicant proposes a mining disturbance of approximately sixty- one acres. The proposed post-mine land use is a reservoir. The Applicant proposes to construct a slurry wall around the pit, de-water the pit during mining, and discharge the water into the South Platte River. The proposed pit would average twenty-six feet in depth. EXHIBIT J (DD 1 3. The Division received timely objections from Leonard K. Vargas,Aquatic and Wetland Company, William Gee,Will and Linda Piper, Robert E &Lavenia Temmer, Todd and Audrey Schroeder,Robert L. and Mary Ellen Stamm, and Neil and Laura Coyle. 4. The Board has jurisdiction over the parties and the subject matter of this case pursuant to C.R.S. § 34-32.5-114. 5. The Board appointed a prehearing conference officer who conducted a prehearing conference on June 20, 2003 in Denver, Colorado, and prepared a proposed prehearing order. Parties who appeared at the prehearing conference included the Applicant, and Objectors Aquatic and Wetland Company, Robert and Lavenia Temmer, and Neil and Laura Coyle. All other objectors failed to appear, and thereby lost their party status in accordance with Construction Materials Rule 2.7.3(4). 6. At the commencement of the hearing,Aquatic and Wetland Company announced that it has settled its dispute with the Applicant and withdraws as an objector in this matter. 7. The Board adopted the proposed prehearing order with modifications to reflect the withdrawal of Aquatic and Wetlands Company. 8. The Division recommends approval of this application with two stipulations, set forth below. 9. The issues set forth in the prehearing order are: A) Has the Applicant proposed measures to minimize impacts to the hydrologic balance in the aquifer beneath the proposed mine site to protect surface vegetation,including nursery stock and wetlands? B) Has the Applicant complied with the State Engineer's rules governing injuries to water rights? C) Has the Applicant planned to minimize impact to surface water systems within and adjacent to the proposed permit area? 2 D) Did the Applicant post notice of the application at the site of the proposed mine of sufficient size and number to clearly identify the site,providing its name, address and phone number? E) Has the Applicant proposed a plan that complies with state and federal water quality protection laws? F) Has the Applicant proposed a plan to strip, stockpile and protect topsoil? G) Has the Applicant proposed a weed control plan? H) Is the proposed financial warranty amount set at a level, which reflects the actual current cost of completing the reclamation plan? Impacts to Surface Water and Ground Water 10. The Objectors are concerned that the proposed operation could impact shallow water wells as well as wetlands in the vicinity of the pit. They seek a condition that would require the Applicant to monitor groundwater and report results. They are also concerned about possible impact to surface waters. 11. Construction Materials Rule 3.1.6 provides that"disturbances to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quantity or quality of water in surface and groundwater systems both during and after the mining operation and during reclamation shall be minimized..." 12. Among other means of satisfying this requirement is that the Applicant comply with applicable Colorado water laws and regulations governing injury to existing water rights, and that the Applicant comply with applicable federal and Colorado water quality laws. 13. The Applicant plans to monitor groundwater for sixteen months prior to constructing the slurry wall to establish existing conditions. It expects the slurry wall to draw down the aquifer approximately two or three feet down-gradient from the pit, and cause the water level to rise, or"mound "to the same degree on the up-gradient side of the pit. However, these effects on groundwater level should occur only in the 3 immediate vicinity of the pit;there should be no draw-down or mounding effect in the aquifer at the locations of any domestic wells. 14. According to data from the Office of the State Engineer, the average depth of wells within six hundred feet of the proposed pit is thirty feet, and the average static water level is six feet below ground level. Thus, a drawdown of three feet would not adversely affect any of these wells, assuming the drawdown is that significant at any one well location; the drawdown effect substantially decreases as the distance from the wall increases. 15. The Applicant also proposes to minimize the mounding and drawdown effect of the slurry wall through means of a French drain system. The Applicant plans to install the system along the southern and western sides of the proposed permit area to divert water from the areas of mounding to the areas that could be affected by a draw-down. 16. If this mining operation did de-water a well,the Applicant has proposed several alternative measures to ensure that the water right is replaced. 17. The State Engineer's Office recognizes that the proposed operation will consume water through evaporation, dust control and de-watering the pit. The Applicant must have an approved Temporary Substitute Supply Plan and a Gravel Well permit prior to affecting groundwater. The State Engineer's Office requires that the Applicant identify the location of all wells within 600 feet of the permit area and obtain a waiver of objections from the owners. Alternatively, any dispute over these rights would be addressed through a formal hearing with the State Engineer's Office. 18. This operation would be subject to a Stormwater Management Plan through the Department of Health to protect surface water from such events as a hazardous 4 material spills or flooding from a major storm. Aggregate processing water will be managed separately. The slurry wall will seal groundwater from the pit,preventing infiltration and possible contamination. 19. The Applicant proposes to store hazardous materials on site. It would store these materials in approved, above-ground vessels within an area that is protected with berms and a heavy-duty liner to ensure that leaks and small spills are contained. 20. The weight of the evidence supports the conclusion that impacts to the prevailing hydrologic balance and to the quantity and quality of surface and groundwater systems in the vicinity of the proposed mine site would be minimized, and would comply with state and federal water quality laws and the laws governing injury to existing water rights as well as Colorado water quality laws. 21. The Applicant's plan complies with Construction Materials Rule 3.1.6. Notice At the Proposed Mine Site 22. The Objectors argue that the Applicant did not post a notice at the proposed mine site for a sufficient duration, and that the notice was too small to practically inform the public. 23. Construction Materials Rule 1.6.2(1)(b)requires the Applicant to post notices at the location of the proposed mine site of sufficient size and number to clearly identify the site as the location of a proposed mining operation. 24. The Applicant posted a 24"X36"sign on a post at the entrance to the mine site on February 28a',prior to the time the Division found the application complete. This notice was sufficient to identify the site as a proposed mining operation. 5 Topsoil Protection 25. The Objectors are concerned that the Applicant will remove topsoil and fail to protect it from erosion. 26. Construction Materials Rule 3.1.9 requires that mine operators strip and stockpile topsoil in a location separate from overburden and mineral. Operators must stockpile topsoil in locations and configurations that minimize erosion,vegetating the stockpiles as necessary to stabilize the stockpiles. 27. The Applicant plans to segregate topsoil from overburden and vegetate any stockpiles that exist for longer than one growing season. The Applicant plans to spray the stockpiles with water to control dust. It plans to redistribute topsoil at a depth of approximately sixteen inches on the reservoir shorelines, with contour furrows to reduce erosion and encourage plant growth. 28. The weight of the evidence supports the conclusion that the Applicant's plan would adequately protect topsoil. 29. These measures satisfy Rule 3.1.9. Weed Control 30. The Objectors are concerned that weeds will infest the Applicant's mine site. 31. Construction Materials Rule 3.1.10(6)requires the Applicant to control all prohibited noxious weeds. 32. The Applicant plans to inspect the mine site for noxious weeds at least twice per month once it has commenced operations. If it finds noxious weeds, it plans to use 6 mechanical controls first; if that fails to effectively control the weeds, it plans to use chemical controls, and cultural or biological controls would be used as a last resort, in accordance with the Weld County Code and the Colorado Noxious Weed Management Act. 33. The weight of the evidence suggests that this plan would control weed infestation. 34. The Applicant's plan satisfies Rule 3.1.10(6). Financial Warranty 35. The Objectors are concerned that the size of the financial warranty is sufficient to ensure that the proposed operation is adequately reclaimed. 36. Construction Materials Rule 4.2.1 requires that the Applicant post a warranty that reflects the actual current cost of fulfilling the requirements of the Reclamation Plan. It must include an amount equal to five (5%)percent of the cost of reclamation to cover the Division's administrative costs. 37. The Division evaluated the sufficiency of the Applicant's proposed warranty using a computer program designed for use in the coal program and approved by the U.S. Department of Interior, Office of Surface Mining. This program assigns values to each reclamation task based on the details associated with the particular operation, including time, equipment and materials. The program also accounts for the Division's 5% administrative costs. 38. Based on this evaluation, the Division is requiring a warranty of$1,052,152.00. 39. The weight of the evidence supports the conclusion that this warranty amount is sufficient to cover reclamation costs for the proposed operation. 7 40. The Applicant's proposed warranty amount satisfies Rule 4.2.1. 8 ORDER Based on the foregoing findings of fact and conclusions of law, the Board orders that the application of SW Meadow, LLC for a 112c reclamation permit,M-2003-016 is hereby approved,with the following conditions: 1) A reportable spill is a spill of any toxic or hazardous substance (including spills of petroleum products)within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment, the National Response Center, the Colorado Emergency Planning Commission, any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Minerals and Geology (DMG) of a reportable spill within the mined land permit area using the same time frame required by the permit, license, notice, statute,rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be faxed to Minerals Program Supervisor, Division of Minerals and Geology, Fax Number(303) 832-8106. The fax shall include a callback number of a responsible company official for DMG staff to use as a contact. 2) The operator will implement the groundwater monitoring system as outlined in the Wright Water Engineers, Inc. report, titled"Groundwater Monitoring and Mitigation Plan for Heit Aggregate Resource Operation, Weld County,Aquatic and Wetland Nursery and Coyle Property," and as defined in adequacy review. At least 16 months of data will be collected prior to initiating mining activities and/or slurry wall installation at the Heit Mine. Based on analysis of collected data, an augmentation trigger mechanism will be proposed to DMG in the form of a Technical Revision to the permit and approved by DMG prior to initiating mining and slurry wall activities at the site. This trigger mechanism must be specific as to volumes of water involved, times of year for delivery, and the length of time augmentation will occur. 3) The operator has submitted its proposed mining plan to Weld County for review of potential floodplain impacts from the mine. The operator will implement any floodplain requirements by Weld County, resulting from this review, as part of its mining plan. DATED this /71 day of Arlie. r , 2003. FOR THE COLORADO MINED LAND RECLAMATION BOARD Harry Jav -nick,Vice Chairman Mined Land Reclamation Board 9 CER1ThICATE OF SERVICE I, 01-tri L1 L „o ftr&Q , hereby certify that on this day of Ob,Q,r , 2003, I deposited a true copy of the foregoing Findings Of Fact, Conclusions Of Law, And Order in the United States Mail, first class postage paid, addressed to the following: S.W. Meadow,LLC Robert Bruce, Esq. 333 W.Hampden Ave., Suite 810 730 17th Street, Suite 370 Englewood, CO 80110 Denver, CO 80202 Counsel for the Applicant Robert and Lavenia Temmer Neil and Laura Coyle 10691 WCR 25 9046 WCR 25 Fort Lupton, CO 80621 Fort Lupton, CO 80621 Aquatic and Wetland Company Leonard K. Vargas 9999 WCR 25 11503 WCR 20 ''A Fort Lupton, CO 80621 Fort Lupton, CO 80621 William Gee Will and Linda Piper 8995 WCR 25 11230 WCR 20 Fort Lupton, CO 80621 Fort Lupton, CO 80621 Todd and Audrey Schroeder Robert L. and Mary Ellen Stamm 8721 WCR 25 11076 WCR 18 • Fort Lupton, CO 80621 Fort Lupton, CO 80621 And by inter-office mail to: Tawnya Deherrera Division of Minerals and Geology Kate Pickford • Division of Minerals and Geology Stephen Brown Attorney General's Office 10 0ct . 21 . 2003 8 : 09AM ND •9201 P . 3 10/14/03 TUE 10:18 FAX 970 356 1111 LL00 Ij002 AGREEMENT • 5 THIS AGREEMENT is made thiso2f day of September, 2003 between Welt Farm, Ltd. ("Landowner") and SW Meadow, LLC and Aquatic and Wetland Company, Brad Windell, John T. Wendell, and Gregory Wendell (collectively, "AWC"). RECITALS A. Landowner owns property located in Section 13, Township 2 North, Range 67 West of the 6th P.M., as more specifically set forth on Exhibit "A," attached hereto (the "Landowner Property"). B. Landowner.and SW Meadow, LLC (collectively, "Applicant") propose to mine sand and gravel on the Landowner Property, and have filed DMG 112 Permit Application Number M-2003-016 with the Colorado Division of .Minerals and Geology ("DMG")and Use By Special Review Application 1444 in Weld County in furtherance of this objective. C. Brad Windell, Jay .Windell and Gregory Windell own lands contiguous to the Landowner Property, specifically described in Exhibit "B" attached hereto (The "Windell Property"), which lands are used by the Aquatic and Wetland Company for the purpose of cultivating wetland and other plant species for sale.. AWC was `� concerned that Applicant's proposed mining activity would negatively affect the Wells and the cultivated fields on the Windell Property, and for this and other F' reasons, filed objections to DMG 112 Permit Application No. M-2001-046 and USR Application 1444. AWC remains an interested party in each of these proceedings, D. Landowner, SW Meadows and AWC wish to resolve their differences with regard to M-2003-016 and USR 1444. AGREEMENT In consideration of the mutual promises and other valuable consideration exchanged herein, Applicant and AWC agree as follows: 1) Recitals. All recitals are incorporated here. 2) Slurry Wall. Applicant shall not dry mine the Landowner Property. . A slurry wall shall be installed surrounding the entire area proposed for mining prior to the commencement of mining. Such slurry wall, as installed, shall meet or exceed the standards set forth by the Office of the State Engineer in place at the time of its construction. So long as Applicants meet said standards, AWC shall not tender any objection to the Office of the State Engineer regarding the specifics of the slurry wall. EXHIBIT 6E- 1 H..\GWWE.MININGtAgreement 03092324oc Oct . 21 . 2003 8 : 10AM No . 9201 P . 7 10/14/U3 1Ut5 10:A! rm. 970 356 1111 LLRO X008 13) Attorneys Fees. The substantially prevailing party shall be awarded attorneys fees in any dispute arising out of or related to this agreement. 14) .Cooperation Regarding Parties. It is the intent of the parties hereto that the parties to this agreement shall be the Aquatic and Wetland Company, the owner of the AWC lands, if different,than AWC, the owner of the lands proposed for mining, and the gravel operator contracted to remove the gravel from the property. Because of time constraints, the parties must act upon information and belief regarding the identity of some parties, without the benefit of formal title and contractual review. Should it appear,.upon further review, that an entity that should have been included was not, or that a party has been improperly joined, the parties agree to cooperate in the amendment of the agreement to effectuate their intent. HEIT FARM, LTD. By: -11-4/(-ti-0-1- of Aa z./a6fi a7 Its tte-iti,fsA_ SW MEADOW,y LLC/�/ % By: . Itsy AQUATIC AND WETLAND COMPANY By; i1� Its :' /Id 4N. � J /J (JOHN T. WINDELL �+ GREGOlgt43tELL 5 H:tGRAVEL MININOWgreement 0309Z32.doc 0ct .21 . 2003 8 : 10AM No . 9201 P. 9 10/14/uo suss 10:cu rite 970 366 1111 LI@O X1008 STATE OF COLORADO ) COUNTY OF WELD j 0 T e for going inst ment was acknpwl#dged before me tills da of n , 2003, b 7 Y Aquatic and Wetland Company, asx � for WITNESS my hand and official seal. My Commission Expires: 3. 331.( - :,V fis s i c, t ry 'ublic ��y "` o% 5 . Iten"may .-est. : �tF,e44o• STATE OF COLORADO ) Nr Conway hakes:oa36imb COUNTY OF WELD ) ) SS. � Th foregoing Instrument was acknowledged before me this day of , 2003, by Brad Windell. 7S WITNESS my hand and official seal: My Commission Expires: '6• Y PU �i v ' � �, an► . I. O IIC q\ ,/ STATE OF COLORADO ) op C04_ as- COUNTY Mr Conn 0330-2C05OF WELD ) OThe foregoing instrument was acknowledged before me this R day of Cii , 2003, by John T. Windell. • • WITNESS my hand and official seal. My Commission Expires: �j `;�-Z r WwN ..pos, / '4_ / ���� i Hit i Nota is � A 1p$4711 gjF ..... pQPs H:IGRAVEL MININGVigreement 0309232N My gams tokn:O*30 jW1 oct • 21 . 2003 8:09AM No . 9201 P . 4 10/lama sun icesu me 970 356 1111 LIAO f�003 3) Pre-Slurry Wall Requirements. Prior to the installation of the slurry wall, Applicant shall, at Its sole cost and expense: a) Perform.a 24 month site specific study of groundwater conditions. Such plan shall include but shall not be limited to biweekly monitoring of ground water levels in and around the Landowner Property, for the first year, and monthly monitoring thereafter. AWC and. applicant shall jointly agree on a party to perform the monitoring. At the conclusion of the study period, the Applicant shall present a report summarizing its findings to AWC, and the Division of Minerals and Geology, estimating the impact of the proposed slurry wall on ground water levels In the area generally, and on the Windell Property specifically, and identifying specific mitigation strategies designed to minimize Impact to groundwater levels. The study shall identify a "trigger point" for groundwater mitigation action of no more than 2 feet in deviation from pre-mining levels, and shall require monitoring of ground water levels on the Windell Property no less than quarterly for the life of the DMG permit. b) Install an equalizing pipeline in the area to be outside and to the North, East and West of the slurry wall boundary. The purpose of such pipe shall be to capture water and direct it around the slurry wall to the Windell Property, in such manner as to mitigate the shadow effect caused by the slurry wall. Prior to installation, the Applicant shall provide AWC plans for the pipeline prepared by a Colorado Registered Engineer. At its sole cost and expense, AWC shall have the right to have such plans reviewed by its own engineer. No construction shall begin until AWC approves the plans; provided, however, that such approval shall not be unreasonably withheld. Unless agreed otherwise In writing by the parties, once installed, the pipeline shall remain in place and shall remain operational, regardless of the outcome of the 24 Month Water Study or any triggers Imposed therein. c) Relocate Well No. 50354-F to a point further North on the Windell Property designed to minimize the shadow effect of the slurry wall on the well. The Applicant shall be responsible for all costs arising out of or related to the relocation of the well and its integration with existing AWC Irrigation systems, including but not limited to obtaining all required administrative or legal approvals, connecting the well to the existing irrigation system, and installing a new pump and other mechanical devices, if necessary: Applicant shall 'select technical and legal counsel to perform the necessary tasks, should AWC desire its own counsel in the process in addition to Applicants selected counsel, AWC shall bear the cost of such counsel. The parties shall cooperate In the selection of a well site and the routing of necessary pipelines. Prior to any construction or application for a replacement permit, the Applicant shall submit plans, prepared by a.Colorado registered engineer, depicting the proposed new well location, the equipment to be installed at the well site, and the pipeline(s) or other devices needed to connect the new well to the existing AWC irrigation system. At its discretion and at its sole cost and expense, have such plans reviewed by its own 2 H'1GRAVEL MININGIAgrooment 0309232.doc 0ct • 21 . 2003 8 : 10AM No . 9201 P . 5 10/14/U3 1VE 10:19 1Aa 970 366 1111 LLAO X1004 • engineer. No construction shall begin until AWC approves the plans; provided, however, that such approval shall not be unreasonably withheld. The intent of this provision is to provide an operational well substantially similar to well 60354 in its existing location. If a site proves non-productive through no fault of AWC, the Applicant shall have the burden of selecting another site beginning the process anew. 4) Post-Slurry Wall Requirements. After the Installation of the slurry wall, should ground water fluctuations on the Windell Property exceed the trigger identified by the 24 month study, the Applicant shall implement the following incremental measures: a) The Applicant shall deliver surface water to the Windell Property in an amount necessary to restore groundwater levels to pre-mining levels. Such water rights shall be legally available for delivery to and use upon the Windell Property for the purposes of groundwater recharge. Applicant shall promptly reimburse AWC for any loss of nursery stock incurred as a result of the lowering of the water table below the trigger point. b) If, in spite of Applicants efforts to mitigate, groundwater levels remain below the Identified trigger point for a period of 90 days, the Applicant shall pay AWC the lesser of 1) the appraised value of all affected acres; or 2) $90,000 in cash. The $90,000 figure shall be escalated at 6% per annum for the life of the permit no. M-2003-016. The parties shall jointly select a hydrologist and a real estate appraiser who shall identify the affected areas and the value, per acre, of the affected acres, respectively. AWC shall retain ownership of the affected acres. AWC, at its discretion, may use the funds provided by the Applicant to purchase an alternative property, and, if it does, the Applicant shall relocate AWC nursery stock to the newly selected property at its sole cost and expense. Once a payment has been made for affected acres, AWC shall not be entitled to an additional payment for the same acres, regardless of ground water fluctuations, provided, however, that additional payments may be made in later years for additional affected acres. Nothing in this provision shall be construed to relieve Applicant of the responsibility for implementation of the ongoing groundwater mitigation strategies set forth herein, including, but not limited to the provision of surface water to AWC under subparagraph (a) above. 5) Miscellaneous Provisions. As further consideration for the withdrawal of AWC's objections in the DMG and County proceedings, Applicant agrees to : a) To plant wetland vegetation on the shorelines of the pit, as reclaimed. b) Include weed control and watering the seeding plan, c) Include cool season grasses in the planting mix, and to Increase the seeding rate to 40 pounds pure live seed per acre. 3 H,IGRAVEL MININGIAgruemerrt 0309232,doa Oct • 21 . 2003 8 : 10AM No • 9201 P. 6 10/larua sun 10:4u rags. 970 356 1111 LLO'O zoos d) To eliminate berms along the Northern boundary of Landowner Property as mining adjacent to that boundary Is completed, if practicable, Applicant shall confer and consult with AWC regarding the berm design criteria. e) To identify tree species planned for planting and the quantity and location of proposed plantings and to confer and consult with AWC regarding those selections. 6) Amendment to Existing Applications. Applicant shall amend Application M-2OO3- 016 and USR 1444 to be consistent with the terms of this Agreement. 7) Term. This agreement is intended to be perpetual, unless such term is amended in writing by the parties. 8) Covenant. This Agreement is intended to be and is a covenant burdening the Landowner Property for the benefit of the AWC property, shall run with the lands of landowner and AWC, and shall be binding upon the heirs, successors and assigns of the parties. This agreement shall be recorded in Weld County at Applicant's expense. 9) Mutual Release. AWC agrees to withdraw all objections to .DMG 112 Permit Application M-2OO3-016 and to USR Application 1444, so long as the final mining and reclamation plan submitted to the Mined Land Reclamation Board and the Weld County Board of County Commissioners complies with the terms of this Agreement. AWC reserves the right to attend and participate in the USR proceeding to the extent necessary to ensure compliance with the terms of this Agreement. Applicant releases and waives any claim it has or may have arising out of the irrigation practices presently in use on the AWC property or Water Court Decree No. 99 CW 15O. 10) Contingency. This Agreement is contingent on the approval of DMG Permit Application M-2003016 and USR Application 1444, as they may be amended. 11) Landowner Bears Obligations. At present, Heit Farm Ltd. has contracted to sell the Landowner Property to SW Meadow, LLC. Upon dosing, Heft Farm, Ltd. and shall be relieved of all obligation under this Agreement, and SW Meadow shall assume such obligations. In like manner, each successive owner of the Landowner Property.shall bear the burdens associated with this Agreement. In the event Heit Farm, Ltd. does not close with SW Meadow, LLC, Heit Farm, Ltd. shall not be obligated to perform its obligations under this Agreement until it determines to mine the property. 12) Entire Agreement. This Agreement represents the entire agreement between the parties and no oral modification shall be recognized. Any amendment to this Agreement shall be in writing signed by both parties. 4 H:IGRAVEL MININGIAgree 0309232.doo Oct . 21 . 2003 8 : 10AM No . 9201 P . 8 10/19/uo our 10:cu me LP 870 360 1111 LO @1007 STATE OF COLORADO ) ss. COUNTY OF WELD ) The foregoing ins ument was ac owledged befge e this eli day of Qc-k_ , 2OO3, by as t for Heit Farm, Ltd. WITNESS my hand and official seal. My Commission Expires: Arno/War VIRGINIA DONOA1 NOTARY PUBLIC STATE OF COLORADO No PUbIIC My Commission Expires 413012065 STATE OF COLORADO ) COUNTY OF WELD ) The foregoing instrument was acknowledged before me this I 0 day of �d�1 , 2003, by rnv1._ (;,per as fl iencr',v- for SW Meadow, LLC, WITNESS my hand and official seal. My Commission Expires: NePS/61 = :�` t ' mom:; .V _L q\ 14 9 � .N. My Commission Expires Aug.25,2007 r 6 H:IGRAVEL MINiNGVlgreement 0300232doc 0ct • 21 . 2003 8 : 19AM No .9201 P . 10 10/1s/ua rus i0:z1 rxa 970 356 1111 LLOO tail009 STATE OF COLORADO ) ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this Sr day of O', atsf/', 2003, by Gregory Windell. WITNESS my hand and official seal, My Commission Expires: • �: • • Rlia;t ll i N0016. l NYNES-MIELE 4:1\ eh'?':CaCt �S *COMMhint w,304:m 8 H:IGRAVEL MINING Agreement 030923240c EXHIBIT 1 (OF Ca5. 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L, ,�,. +, r4 '� ro `, ) i j titi � }$ r Vilir cif 1:7 WELL fotI4 g NO`5 `. t A ' U p p P '- •, DRAWDO .0 5 .c-t,•\4 It � AWC \ NO 50354-F PERMIT WELL:ajl 1 NURSERY 75 C ‘ AREA OFtir , ` POSSIBLE 1 -'-' __ +. rl UNLINEfI PIT r Thin- / ®I' SMALLir-' d `w r; K0ENI0 � ` ' "MOUND/NC, ' I EC 40 - k\ C Y. { '♦, x'tCµ F o- fp y .{ k7 nY Viit Z:\ '" 0 F30 Fr m HEIT PIT w'M"K'MA(A13103-1190N MINE GROUNDWATER EVALUATION , , ,� Exhibit 6G is Oversized , Color Map of Mine Groundwater Evaluation Please see Original File Hello