HomeMy WebLinkAbout20032451.tiff 1v
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SURFACE USE AGREEMENT
This Surface Use Agreement("Agreement")is made this 3O;h day of April, 2003, and is
between KERR-McGEE ROCKY MOUNTAIN CORPORATION ("KMRMC", a Delaware
corporation, successor to HS Resources, Inc. and KERR-McGEE GATHERING, LLC ("KMG"),
formerly known as HS Gathering, LLC., both with an address of 1999 Broadway, Suite 3600,
Denver,CO 80202,and NORTHERN COLORADO CONSTRUCTORS,INC. (Referred to herein
as "Surface Owner"), with an address of 9075 Weld County Road 19, Fort Lupton, CO 80621.
A. Surface Owner owns a parcel of land located in the E/2SE/4 of Section 24,
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. Surface Owner is subject to the rights of the oil and gas mineral estate of which a
portion of the oil and gas leasehold is now owned by KMRMC;
C. Surface Owner will apply for and obtain mining permits for a sand and gravel
mining and processing operation known as the"NCCI Pit#1"("Mine");
D. KMRMC currently operates the William E.Gee Gas Unit#2 well("Existing Well")
and associated production equipment located on the Property has the right to
deepen,recomplete or rework the Existing Well and drill new wells on the Property
("Future Wells").
E. This Agreement sets forth the parties' rights and obligations regarding the
relationship between the development of the Property by Surface Owner and
KMRMC's operation and development of its oil and gas leasehold estate.
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. OIL AND GAS OPERATION AREAS RESERVED.
Surface Owner shall provide KMRMC no less than a 300 X 350 foot area around the
Existing Well ("Oil and Gas Operation Area") as described on Exhibit A attached hereto
for the Existing Well and for any operations conducted by KMRMC in connection with the
Existing Well, including, but not limited to, lease operating activities, workovers, well
deepenings, recompletions and fracturing.
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2. FUTURE WELL LOCATIONS.
KMRMC shall have the right to drill Future Wells (including horizontal and directional
wells that produce from and drain the Property and lands other than the Property) at any
locations within any of the Oil and Gas Operation Areas shown on Exhibit A attached
hereto, so long as such locations are permitted locations under the then applicable well
spacing regulations of the Colorado Oil and Gas Conservation Commission ("COGCC").
KMRMC shall not otherwise have the right to drill Future Wells on the Property. Within
30 days of notice from KMRMC, Surface Owner will accommodate any KMRMC request
to remove,relocate, or back-fill any area KMRMC requires for the access to and/or the use
of any Oil and Gas Operation Area shown on Exhibit"A" attached hereto.
3. ACCESS.
a. Surface Owner shall at all times provide to KMRMC no less than a 20 foot wide
easement for access to all of the Oil and Gas Operation Areas. KMRMC shall
maintain access roads at its sole cost during the period of time that KMRMC
conducts operations on the Property using such access.
b. Access to any Oil and Gas Operation Area may be changed by mutual agreement of
Surface Owner and KMRMC provided, however, all costs and expenses of the
relocation shall be borne by the party requesting the change.
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.
d. 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 Oil and Gas Operation Area within no less than a 350 foot X
300 foot area of the wellhead. In no event shall Surface Owner mine within 80 feet
of any wellhead or 50 feet of any production equipment, such as oil storage tanks
and separators.
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 any of the Oil and Gas Operation
Areas shown on Exhibit A.
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 access roads to the 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, commencing at the surface
of the original ground, closer than 25 feet from any flowline or pipeline.
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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 pipelines or flowines with heavy equipment, like earth moving
equipment, Surface Owner will maintain a minimum of four foot and a maximum
of 6 foot of dirt coverage, in addition to the existing cover over the pipeline. When
crossing pipelines or flowlines with trucks and lighter equipment, Surface Owner
will maintain a minimum of two foot and a maximum of 6 foot of dirt coverage,to
the existing cover over the pipeline or flowline.
e. The depth of cover over the pipelines or flowlines shall not be reduced or drainage
altered without KMG's written approval.
f. Any utility crossing must be a minimum of 18" inches beneath pipelines or
flowlines.
g. Parallel utilities must maintain a minimum of ten foot separation, unless KMG or
KMRMC grants a lesser distance of separation. Surface Owner will request that all
utility companies contact KMG and/or KMRMC prior to laying lines parallel to an
pipeline or flowline.
h. Construction of any permanent structure with KMG's pipeline easement is not
permitted.
i. Planting of trees and shrubs is not permitted on ICMG's pipeline easement.
j. A foreign pipeline shall not run parallel to KMG's pipelines within KMG's
easement without written permission from KMG.
k. Surface Owner shall understand that KMG, per federal law,must mark the routing
of its underground facilities with aboveground pipeline markers and maintain those
markers. 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 KMG facilities.
1. In the event that Surface Owner does not maintain the above standards or damages
any KMG pipelines,KMRMC flowlines,or other KMG facilities,while conducting
its mining operations, Surface Owner shall reimburse KMG and/or KMRMC for
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 least 30 days' prior written
notice to Surface Owner of the initial drilling of any Future Wells. Regardless of the
foregoing notice requirements, KMRMC shall have immediate access to any Oil and Gas
Operation Area 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's mobilization on the applicable Oil and
Gas Operation Areas, either KMRMC or Surface Owner may request an on-site meeting.
The purpose 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 FUTURE PROPERTY OWNERS.
Surface Owner shall furnish all buyers of the Property with a plat or map showing the
access roads,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 from Surface Owner that:
a. There maybe ongoing oil and gas operations and production within the Oil and Gas
Operation Areas on the surface of the Property;
b. There may be additional Wells drilled within any of the Oil and Gas Operation
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.
40, 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. SETBACK REQUIREMENTS.
Surface Owner will not locate inhabited buildings within 50 feet from any of the Oil and
Gas Operation Areas. Since Future Wells may be located at any location within any Oil
and Gas Operation 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 Oil and Gas Operation 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 KMRMC, its successors and assigns under
the existing oil and gas leasehold estate.
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10. DEVELOPMENT PLANS.
Surface Owner has provided herewith copies of the proposed Pre-Mining Plan, Mining
Plan and Reclamation Plan. KMRMC acknowledges receipt of said Plans and has no
objections to said Plans as submitted. 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 applicable Oil and Gas Operation Areas 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 owed to KMRMC; and
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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.b 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 Laws or relating to asbestos or to naturally occurring
radioactive material. 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 other
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 fully 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 Gas Operation 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.
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 terms, covenants, and conditions hereof shall bee 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 full
force and 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.
18. FORCE MAJEURE.
In the event either party is rendered unable by an event of Force Majeure (defined below)
to perform, wholly or in part, any obligation set forth in this Agreement, other than the
obligation to pay money, then the performance by the affected party will be suspended
during the continuance of such event of Force Majeure. The party experiencing an event
of Force Majeure shall provide reasonable notice to the other party as soon as possible with
all reasonable dispatch. As used herein, the term "Force Majeure" shall mean any act of
God, acts of the public enemy, blockages, insurrections, riots, epidemics, landslides,
lightening,earthquakes,fires, severe weather,floods,washouts,arrests and restraints of the
federal, state or local government, civil disturbances, explosions, breakage or accidents to
machinery or lines of pipe,the binding order of any court of governmental authority which
has been resisted in good faith by all reasonable legal means, delay in securing
environmental approvals, the inability to obtain necessary supplies, material, equipment,
machinery or labor and any other causes, whether of the kind herein enumerated or
otherwise not within the control of the party claiming suspension and which by the exercise
of due diligence such party is unable to prevent or overcome.
19. NOTICES.
:HS:
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:
If to KMRMC:
Kerr-McGee Rocky Mountain Corporation
1999 Broadway, Suite 3600
Denver, CO 80202
Attention: Director of Lands Denver Basin
If to Surface Owner:
Northern Colorado Constructors, Inc.
Attn: Mr. John Zadel
9075 Weld County Road 19
Fort Lupton, CO 80621
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. WAIVER OF SURFACE DAMAGE PAYMENTS.
Surface Owner hereby waives all surface damage payments pursuant to any COGCC or
local regulation, state statue, common law or prior agreement for each and every well and
related wellsite that is drilled within the Oil and Gas Operation Areas and for each
production facility. 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 term
"surface damage payments" as used herein shall be given the meaning commonly used in
the oil and gas industry.
21. RECORDING.
This Agreement, any amendment hereto, and any release entered into pursuant to Section
18 above, shall be recorded by KMRMC, which shall provide the other parties with a copy
showing the recording information as soon as practicable thereafter.
22. ARBITRATION.
Any controversy or claim arising out of or relating to this Agreement,or the breach thereof
shall be resolved by arbitration 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.
23. APPLICABLE LAW.
This Agreement shall be governed by and construed in accordance with the laws of the
State of Colorado.
24. 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
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-Me EE CKY OUNTAIN CORPORATION
By: / C
JAMES WjA
ttorney- 'Pact
r
KERR-McGEE GATHERING LLC
a Colorado limited liability company
By its Manager
Kerr-McGe. -•ocky ountain •rporation
By:
Jam:. P. Was.J
Atto ey-in-Fact
NORTHERN COLORADO CONSTRUCTORS, INC.
By: sS7
N z4
Title: /-"
ACKNOWLEDGEMENTS
STATE OF COLORADO )
CITY AND ) ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me this 3eday of April, 2003, by
JAMES P. N, as Attorney-in-Fact for Kerr-McGee Rocky Mountain Corporation, a
Delwar Ytti t, behalf of that corporation.
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official seal. nuvut ?
My wIsiRion expired otary ublic
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STAIcny D )
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401
The foregoing instrument was acknowledged before me this&Yay of April, 2003 by
JAMES P. WASO orney-in-Fact for Kerr-McGee Rocky Mountain Corporation, its
Manager, for E ering LLC, a Colorado limited liability company.
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My commtp epires: Nary Puulic
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My Commission Ernes O 24/2034
STATE OF COLORADO )
_ ) ss.
COUNTY OF .dege, )
The f regoing instrume acknowledged before me this .2Othday of April 2003, by
�� ,Zr, 9 ' as Qi/OD�/��/��i for Northern Colorado
Const tors, Inc., a Co orado corporation, on behalf of that corporation.
Witness my hand and official seal. ��// �/
//rdn%2 Wt /WI
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My commission expires: (o////200a
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AN-04-03 10:45AM FROM-Davis Graham I Stubbs r 1-492 P.002/009 F-014
070
SURFACE USE AGREEMENT
Aotee J003
This Surface Use Agreement("Agreement")is made this // day of Apci13000,by and between
K.P. Kauffman Company, Inc. (K2K), a California company authorized to do business in Colorado and
whose address is 1675 Broadway, Suite 2800, Denver, Colorado 80202-4628 and Northern Colorado
Constructors,Inc.,(hereinafter referred as"Surface Owner"),with an address of 9075 Weld County Road 19,
Fort Lupton,Colorado 80621.
A. Surface Owner is the surface owner of a parcel of land located on the following described land
located in Weld County,Colorado(which will hereinafter be called the"Property,"to wit.
Section 24.T2N.R67W of 6th P.M
E/2 , SE/4
The Property is further described on Exhibit"A"attached hereto and incorporated herein by reference.
B.Surface Owner's right to develop the surface is subject to the rights of the oil and gas mineral estate
of which a portion is now owned by KPK;
C. Surface Owner will apply for and obtain mining nermitc fnr a sand anri gravel mining and
processing operation known as the NCCI Pit#1 ("Mine")in accordance with the platt set forth in Exhibit"A.";
D. KPK has the right to explore for and produce oil and gas from the Property. including but not
limited to operate,deepen,drill, recomplete, rework,twin the already existing Glen Horton#1 and#2 wells
on the Property(Existing Wells).
E.This Agreement sets forth the parties rights and obligations regarding the relationship between the
development of the Property by Surface Owner and KPK operation and development of its oil and gas
leasehold estate.
Now therefore, 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 Operations Areas: Surface Owner shall provide KPK an area of not less than
the area described on Exhibit"A"as the"Oil and Gas Operations Area",but in no event shall the Oil and Gas
Operations Area be less than 150 feet radius surrounding the Existing Well for any oil and gas operations to
be conducted by KPK in connection with any Existing Wells,including,but not limited to lease operating
activities, workovers, well deepenings,recompletions and fracturing. Surface Owner agrees that it will not
build or install any object or obstruction either above orbelow the surface within 150 feet of any Existing Well,
including but not limited to buildings,sand or gravel piles, extraction equipment,and pipelines. The Oil and
Gas Operations Area surface height and level existing at the time of the execution of this Agreement shall not
be changed by Surface Owner without written permission of KPK.
2. Future Wells. KPK shall have the right to drill Future Wells(including horizontal and directional
wells that produce from and drain or inject into the Property and land other than the Property)at any locations
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JUN-01-03 10:15AM FROM-Davis Graham i Stubbs + 1-492 P.003/009 F-011
within any of the Oi1 and Gas Operations Area shown on Exhibit"A." KPK shall not otherwise have the right
to drill Future Wells on the Property which are not within an Oil and Gas Operations Area..
�-- 3.Ingress and Egress.
a. Surface owner shall at all times provide to KPK no less than a 30 foot wide easement for ingress
and egress to the existing Oil and Gas Operations Areas. Surface Owner shall be solely responsible to assure
that the 30 foot width shall be maintained at all times. KPK shall maintain access roads at its sole cost during
the period of time that it conducts operations on the Property using such ingress and egress.
b. Ingress and egress to the existing Oil and Gas Operations Area as show on Exhibit A" may be
changed by mutual agreement of Surface Owner and KPK provided in the case of such a change,all costs and
expenses of the relocation shall be born solely by the party requesting the change..
c.If the Surface Owner desires to mine within 150 feet of any Existing Well,the Surface Owner shall
submit a written plan to KPK for satisfactory operation of any well,access and deployment ofa workover rig
and emergency vehicle to any well. (Plan). In no event shall the Surface Owner be permitted to mine within
an 80 foot radius of any Existing Well. The Plan shall provide for the mining of sand and gravel in pie shape
wedges to within a 80 foot radius of the well which after mining the affected area shall be backfilled and
compacted to 90% compaction or KPK approval of the original contours of the Property at the time of the
execution of this Agreement. No wedge shape mining shall be such that KPK cannot continue to produce
its Existing Wells and if necessary access any Existing Well with a workover rig. Whether or not to approve
such a Plan in whole or in part shall be in the sole discretion of KPK.
4.Batteries and Equipment(Production Facilities). KPK 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 the Existing Wells or Future Well within the Oil and Gas Operations Areas,
including a road way of sufficient width and turning radius to accommodate a semi-truck to remove the crude
oil. In no event shall such area be less than 75 feet from the battery.
5. Flowlines and Pipelines.
a. KPK has the right to lay flowlines and pipelines which to the extent possible will be located
under roads for ingress and egress to the existing Oil and Gas Operations Areas. All pipelines shall be located
to a surface depth of approximately 48 inches from the final grade elevation. Flow lines,which are defined
as those lines which carry water any/or hydrocarbons to or from the Existing Wells,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 KPK or its gas purchaser. unless Surface Owner requests that such flowlines or pipelines be
moved from their present position at the time of the execution of this Agreement,then such costs shall be paid
for by the Surface Owner.
b. Surface Owner will not allow any extraction to occur, commencing at the surface of the
original ground closer,than 25 feet from any Bowline or pipeline. The Surface Owner shall maintain a side
wall of sufficient distance and angle to assure that such 25 feet shall be maintained at all times.
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JUN-04-03 10:46AM FROM-Davis Graham 4 Stubbs s T-402 P.004/000 F-014
c. Surface Owner shall not allow any stockpile of soil exceeding 5 feet in depth to be placed
over any flowline, provided however, if the flowline or pipeline is within the ingress and egress areas, no
stockpile of any sort shall be placed in such area.
d When crossing a KPK flowline or pipeline with heavy equipment, like earth moving
equipment,the Surface Owner will maintain a minimum of four foot and a maximum of6 foot ofdirt coverage
in addition to the existing cover over the flowline or pipeline.When crossing KPK's pipelines with trucks
and lighter equipment,the Surface Owner will maintain a minimum of two foot and a maximum of 6 foot of
dirt coverage in addition to the existing cover over the flowline or pipeline.
e. The depth of cover over the KPK flowlines or pipelines shall not be reduced or drainage
altered without KPK's written approval.
f. Surface Owner shall not issue any right,permit,or easement unless such right permit or
easement requires any third party's flowline or pipeline crossing KPK's flowlines or pipelines to be buried
a minimums of 18"inches beneath KPK's flowlines or pipelines.In no event shall an electrical line of any kind
be buried in such area without written permission of KPK. Any parallel flowlines or pipelines must maintain
a minimum 10 foot separation, unless KPK grants a lesser distance of separation in writing. The Surface
Owner will request all utility companies contact KPK prior to laying any such lines.
g.Construction of any permanent structure within KPK's pipeline easement is not permitted,
nor shall the planting of trees and shrubs be permitted.
h. The Surface Owner understands that KPK by federal law, must mark the routing of its
underground facilities with aboveground markers and maintain those markers. Surface Owner agrees that
such markers may be installed and maintained.
ter i.In the event that Surface Owner does not maintain the above standards or damages any of
KPK's facilities, while conducting its mining operations,then KPK shall have the right to undertake to uphold
those standards and/or mitigate any such damage and the Surface Owner shall reimburse ICPK all of its costs
of relocation,,replacement or repair.
6.Notice to Subsequent Purchasers. Surface Owner shall furnish all buyers of the Property with aplat
or map showing the access roads, the Oil and Gas Operations 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 from Surface Owner that;
a. There will be on going oil and gas operations and production in the Oil and Gas Operations Areas
on the surface of the Property;
b. There may be additional Wells drilled on the Oil an Gas Operations Area; and
c.Purchase ofportions 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 under
taken by the Surface Owner pursuant to this Agreement, including, but not limited to the waiver provisions
provided in Section 9 below.
Page 3 of 8
n
JUN-04-03 10:45AM FROM-Davis Graham i Stubbs +' T-452 P.005/00D F-014
7. KPK Notice. Except in the event of any emergency, or in connection with ordinary scheduled
maintenance or normal operations of the Existing or Future Wells batteries, for which not notice will be
required and immediate access will be available to KPK,KPK shall provide Surface Owner with at least five
business days'prior written notice of any operations in connection with the reworking,fracturing,deepening
or other operations on any Existing Well or Future Well;provided however that KPK shall provide notice
required by COGCC regulations to Surface Owner of the initial drilling of any Future Wells. The notice shall
describe the proposed starting date, approximate duration and operations intended to be performed_ Either
party may request an on-site meeting or telephone conference concerning the intended activity,to coordinate
access or to discuss any other issues.
8.Drilling and Completion Operations. KPK 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. KPK will
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. Setback Requirements. Surface Owner will not locate any permanent or temporary structure which
contains an ignition source within 75 feet from the existing Oil and Gas Operations,pipelines or flowhnes_
Since Future Wells maybe located at any location within the Oil and Gas Operations Area,Surface Owner
waives the 150-foot setback requirement provided in Rule 603a.(2) of the COGCC rules and regulations
insofar as subsequent development may create new surface property lines within 150 feet of any Oil and Gas
Operations Area. In the event new 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 KPK,its successors and assigns under the existing oil and gas leasehold estate.
10. Development Plans. Surface Owner agrees to provide true copies of any proposed Pit-Mining
Plan,Mining Plan and Reclamation Plan.KPK agrees that so long as such mining plans are not in conflict with
this Agreement,it will not object to any such plan and if requested will provide Surface Owner with written
documentation of such. Nothing in this paragraph in any way waives KPK's rights in this Agreement or
obligations of the Surface Owner under the terms of this Agreement.Surface Owner acknowledges that KPK
may conduct oil and gas activities within the applicable Oil and Gas Operations Areas provided herein and
neither shall oppose KPK concerning such activities before any agency or governmental proceeding if such
oil and gas activities are proposed and carried out in accordance with 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 from 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 the
losses, claims,damages,demands,suits,causes of action, fines,penalties. expenses and liabilities,including
without limitation attorneys'fees,consultant,expert fees and other costs associated therewith and any fees a:id
expenses in enforcing this indemnity(all of the aforesaid 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 parry shall releece defend indemn;fv and hold the other party,their
officers, directors, employees, successors and assigns ("Indemnified Parties"), harmless against all such
Claims.This provision does not,and shall not be construe to,create any rights in persons or entities not a pasty
Page 4 of 8
JUN-04-03 10:47AM FROM-Davis Graham I Stubbs + 1-492 P.000/000 F-014
to this Agreement,nor does it create any separate tights in parties to this Agreement other than the rights to
be indemnified for Claims as provided herein;
c. KPK 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,KPK shall take all necessary action.at its sole cost and expense,to have such hen discharged and
released as promptly as practicable, except KPK shall have the right to file an operators lien against other
owners of the oil and gas leasehold interests to recover amounts owed KPK; and
d. Upon the assignment or conveyance of a party's entire interest in the Property, that patty
shall be released from its indemnification in Section 11.b above,for all actions or occurrences happening after
the assignment or conveyance.
12. Environmental Indemnity.
a,The provisions of Section 11 above,except for the definition of"Claims"and"Indemnified
Party or Parties,"shall not apply to any environmental matters, which shall be governed exclusively by the
following;
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 Laws or relating to asbestos or to naturally occurring radioactive material.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 other
governmental authority(ies),which relate to or otherwise impose liability,obligation,or standards withrabpa.a
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 etp.),
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 er.seq.),The Clear Air Act,and the Toxic Substances Control Act(15
U.S.C. §§ 2601-2629);and
d_ KPK agrees to fully protect,indemnify,and hold harmless Surface Owner and any lot owner
who purchases a lot from Surface Owner and its Indemnified Parties from any Environmental Claims relaxing
to the Property or oil and gas leasehold thereunder that arise out of its ownership and operation of the
applicable Oil and Gas Operations Areas, flowlines and pipelines or any such claims resulting from acts or
KPK,its employees and agents. Surface Owner shall fully protect,indemnify and hold harmless KPK and its
Indemnified Parties from any and all Environmental Claims relating to the Property that arise out of their
development of the Property or any such claims resulting from the acts of the Surface Owner, its employees
and agents.
13. Exclusions 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.
Page 5 of 8
JUR-04-03 10:48AM FROM-Davis Graham i Stubbs + T-402 P.007/000 F-014
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 parry,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 not later than three calendar
months after receipt of the Claim by the Indemnified Party. Indemnified Party shall forward the originals or
adequate copies of all materials received concerning the claim as soon as reasonably possible.
15. Representations. The parties represent to one another that each one has the full right and authority
to enter into this Agreement KPK does not represent that it has rights to settle matters for the mineral owners
in the Property.KPK has only the right as a mineral lessee and this Agreement only pertains to such rights as
KPK may hold.
16. Successors and Assigns. The terms,covenants,and conditions hereof shall be binding upon and
shall inure to the benefit of the parties and their respective successors and assigns; provided, as to KPK,
successors and assigns shall be deemed limited to lessees under the oil and gas lease which KPK owns.The
rights and obligations provided in this Agreement shall benefit and burden Surface Owner.its successors and
assigns.
17. Tenn. This Agreement shall become effective when it is fully executed and shall remain in full
force and effect until KPK's leasehold estate expires or is terminated, and Existing or Future Wells are
plugged and abandoned and KPK has complied with 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.
18.Force Majeure. In the event either party is rendered unable by an event of Force Majeure(defined
below) to perform,wholly or in part. any obligation set forth in this Agreement,other than the obligation to
pay money then the performance by the affected party will be suspended during the continuance of such event
of Force Majeure.The party experiencing an event of Force Majeure shall provide reasonable notice to the
other party as soon as possible with all reasonable dispatch.As used herein,the tenn"Force Majeure"shall
mean any act of God,acts ofthe public enemy,blockages,insurrections,riots,epidemics,landslides,lightning,
earthquakes,fires,severe weather,floods,washouts, and restraints of the federal,state or local government,
civil disturbances,explosions,breakage or accidents to machinery or lines of pipe, the binding order of any
court of governmental authority which has been resisted in good faith by all reasonable legal means,delay in
securing environmental approvals,the inability to obtain necessary supplies,material,equipment,machinery
or labor or any other causes(other than the failure to pay money),whether of the kind herein enumerated or
otherwise not within the conlrol of the party claiming suspension and which by the exercise of due diligeire
such party is unable to prevent or overcome.
Page 6 of 8
r•
JUN-04-03 10:50AM FROM-Davis Graham & Stubbs + 1-402 P.000/00➢ F-014
19.Notices. Any notice or other communication required or permitted under this Agreement shall be
sufficient if deposited in U.S. Mail, postage prepaid or by sent by facsimile transmission addressed as
following:
if to KPK:
K.P. Kauffman Company,Inc.
1675 Broadway,Suite 2800
Denver,CO 80202
Attention:Kevin P.Kauffman
Facsimile No. 303-825-4825
If to Surface Owner.
Northern Colorado Constructors,Inc.
9075 Weld County Road 19
Ft.Lupton,CO 80621
Attention John 7adel
Facsimile No. 303-857-2933
Any notice shall be considered to have been sent and deliver,when hand delivered by whatever means;three
days after the same is deposited in the U.S.Mails as described above,or when received via facsimile on the
recipients fax facilities(as confirmed on the fax facilities of the notifying party. 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.Waiver of Surface Damage Payments. Surface Ownerhereby waives all surface damage payments
pursuant to any COGCC or local regulation.state statue,common law or prior agreement for each and every
well and related well site that is drilled within the Oil and Gas Operations Areas and for each production
facility. KPK may provide a copy of this Agreement to the COGCC or to any local jurisdiction,person or
si. entity or any court of law as evidence of this waiver."Surface damage payments"as used herein shall be given
the meaning commonly used in the oil and gas industry.
21. Recording. This Agreement, any amendment hereto, and any release entered into pursuant to
Section 18 above,shall be recorded by KPK,which shall provide all other parties with a copy showing the
recording information as soon as practicable thereafter.
22.Arbitration. Any controversy or claim arising out of or relating to this Agreement. or the breach
thereof, shall be resolved by arbitration 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.
23.AUulicable Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Colorado.
Page 7 of 8
JUN-04-03 10:51AM FROM-Davis Graham i Stubbs + T-492 P.009/009 F-014
24. Entire Agreement. This Agreement sets forth the entire understanding among the parties hereto
regarding the matters addressed herein, and supersedes any previous communications, interpretations or
agreements,whether oral or written.This Agreement shall not be amended,except in written form signed by
all parties.
The parties have executed Agreement on the day and year first above written..
K.P.KAUFFMAN COMPANY,INC.:
By:
Title: •
SURFACE OWNER:
NORTHERN COLORADO CONSTRUCTORS,INC.
Name:
By:
STATE OF COLORADO )
CITY AND COUNTY OF DENVER)
The foregoing instrument was acknowledged before me this day of , 2003, by
as of the K.P. Kauffman Company, Inc. on behalf of that
corporation.
Notary Public
Witness my hand and official seal. (SEAL)
Notary Public My commission expires:
STATE OF COLORADO
COUNTY OF )
The foregoing instrument was acknowledge before me this day of 200 by
as ,of Northern Colorado Constructors,Inc_on
behalf of that corporation.
Notary Public
W7itness my hand and official seal. (SEAL)
Notary Public My commission expires:
Page 8 of 8
JAtd-1,-2:03 NA 03; 16 F". ROCKY in CONSULTANTS AX ND, 3036656959 ?, 02
STATE OF COLORADO
OFFICE OF THE STATE ENGINEERF``�,
Dr lion of Waler Resources rkts/. v
Depvtment of Natu,aI Resos.rcts (b7
1313 Sherman Street,Room 918 � ssse:
Denver.Colorado 90203
Phut*(3J3)968-:1581 aT' �.---
FAX 13031866-3589 December 30, 2002
Gil Owen.
w.vw.watter gate.co.u5 Oo.emor
Cws E.Wakter
Mr. Douglas C. Seely, P.E. Execum€Oremir
Rocky Mountain Consultants, Inc. Hal° " pi"" Or:
Stow cw«r
825 Delaware Ave.; Suite 500
Longmont, Colorado 80501
Re. NCCI Pit No, 1 Gravel Mine, Substitute Water Supply Plan
DMG File No. M-2001-107
Section 24, T2N, R67W, 6th P.M.
Water Division 1, Water District 2
Dear Mr. Seely
This letter is in response to your application of April 15, 2002 requesting a substitute water
supply plan for a sand and gravel pit to be operated by Northern Colorado Constructors, Inc.
(NCCI), in accordance with 37-80-120 C.R.S. The Applicants shall be responsible for compliance
with this plan, but the State Engineer's Office may also pursue the landowner, for eventual
compliance. The required fee of$1.343 for the substitute water supply plan has been paid.
This plan describes the proposed water uses for this new mining operation. The plan
anticipates a depletion of 14.3 acre-feet for up to 0.62 acres of exposed groundwater.
According to the information submitted no water surface was exposed within the permit
boundary prior to January 1, 1981.
You have provided a monthly breakdown of the maximum annual depletions totaling 1.8
acre-feet of evaporative loss from a maximum of 0.82 acres of exposed groundwater. 2.2 acre-
feet of water used and consumed for dust control and 10.3 acre-feet of water lost with the
mined product. No phreatophyte credit has been applied to this plan.
This current plan anticipates dry mining of the NCCI Pit No. 1 by way of a dewatering
trench with aggregate processing nearby. The dewatering trench, aggregate mining area and the
settling ponds are located greater than 100 feet from the South Platte River. The Applicant has
provided a monthly schedule of lagged depletions to the river system resulting from losses at this
site.
The proposed source of replacement for this aggregate mining operation is 3 shares of the
Lupton Meadows Ditch and effluent credits leased from the Consolidated Mutual Water Company.
A 0.50 percent transit loss per mile (15.0 percent overall loss) has been accounted for in the
replacement schedule for the leased water from Consolidated Mutual Water Company. The
monthly depletions and replacement requirements are found on your attached tables 5,6 and 7.
The final reclamation plan for the NCCI Pit No. 1 calls for lined storage ponds with a
total water surface area of approximately 68 acres. This site is currently being dewatered,
however, if the dewatering of the site is discontinued, the pit would fill creating additional
depletions to the stream system due to increased evaporation. To assure that this depletion to
:AN-13-2:03 MJN 03: 16 F4. ROCKY MTh CONSULTANTS FH}; NJ, 3036656E,59 ?. 03
Mr. Doug Seely.P.E.
December 30,2002
Page 2
the river does not occur, a bond for$824,800 through DMG for lining or backfilling of the lakes
has been obtained, Therefore, if dewatering is discontinued this bond can finance the
completion of the lining of the pit or the backfilling, thus preventing depletions to the stream
system.
As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been
provided to an outside consultant for review: The consultant has recommended approval of the
plan by way of a draft of this letter. Based upon statutory requirements and the recommendations
of the consultant, I hereby approve the proposed substitute water supply plan in accordance with
Section §37-80-120, C.R.S., subject to the following conditions:
1. A well permit must be obtained for the gravel pit in accordance with §37-90-137(2)
and (11). C.R.S. prior to exposure or use of ground water. The provisions of
Colorado Revised Statute 37-90.137(2) prohibits the issuance of a permit for a
well to be located within 600 feet of any existing well, unless the State Engineer
finds that circumstances so warrant after a hearing held in accordance with the
procedural rules in 2CCR402.5. This hearing may be waived if you are able to
obtain statements from the owners of all wells within 600 feet, verifying that they
have no objection to your use of the proposed well. In your submittal you
indicated that you had obtained a waiver from the one affected well owner.
However, if a new well permit is denied for reasons of 600 foot spacing, or any
other legitimate reason, approval of this substitute supply plan will be cancelled.
2. The losses associated with this mining operation must not exceed a total of 14.3
acre-feet for the duration of this permit approval. These losses include 1.8 acre-
feet of evaporation from the proposed exposure of groundwater, 2.2 acre-feet of
water used for dust suppression and 10.3 acre-feet of water lost with the 350,000
tons of mined aggregate. Should the lagged annual depletions to the South Platte
River exceed 14.3 acre-feet from this operation prior to the expiration date of this
plan, an amendment will need tc be filed with this office,
3. Approval of this plan is for the purposes as stated herein. Any additional uses of
this water must first be approved by this office. Any future additional historic
consumptive use credit given (e.g., agricultural water transfer)for this site must
consider all previous credits given.
4. All pumping for dust control shall be measured in a manner acceptable to the
Division Engineer.
5. Adequate accounting of depletions and replacements(in acre-feet) must be
provided to the Water Commissioner and/or Division Engineer on forms and at
times acceptable to both of them. The accounting form(s) shall be sufficient to
demonstrate that the net effective replacement equaled or exceeded the total
depletion on.a monthly basis. All replacement water must be concurrent with
depletions in quantity, timing and location, except that releases aggregated at the
discretion of the Division Engineer may occur in a later month than the depletions.
Said accounting must be received by the 10t°of the month following the reporting
period.
SiN-13-2 03 DN 03: 17 P . ROCKY MTh CONSULTANTS ?AX NJ. 3036656959 ?, 04
Mr. Doug Seely, P.E.
December 30,2002
Page 3
6. The name, mailing address, and phone number of the contact person who will be
responsible for operation and accounting of this plan must be provided on the
accounting forms to the Division Engineer and Water Commissioner.
7. The approval of this substitute water supply plan does not relieve the Applicant
andior landowner of the requirement to obtain a Water Court decree approving a
permanent plan for augmentation or mitigation to ensure the permanent
replacement of all depletions, including long-term evaporation losses after gravel
mining operations have ceased. If reclamation of the mine site will produce a
permanent water surface exposing groundwater to evaporation, an application for
a plan for augmentation must be filed with the Division 1 Water Court at least
three (3)years prior to the completion of mining to include, but not be limited to,
long-term evaporation losses. If a lined pond results after reclamation,
replacement of lagged depletions shall continue until there is no longer an effect
on stream flow.
8. Three shares of the Lupton-Meadows Ditch have been allocated to this plan for
replacement of depletions to the South Platte River created by this operation. The
amount and location of the dry-up of the irrigated acreage associated with the
uses of the Lupton-Meadows Ditch water must be documented and approved by
the Division Engineer and Water Commissioner. A map and legal description of
the dry-up must be submitted to the Water Commissioner, Division Engineer and
the State Engineer by April 30, 2003.
9. This plan is valid through December 31, 2004 unless otherwise revoked or
modified. A signed copy of the lease agreement for replacement water with
Consolidated Mutual Water Company must be submitted to this office prior to
exposure of groundwater. Should the lease agreement expire prior to expiration
of this plan, the plan will be changed so as to terminate with the termination of the
lease agreement.
10. This office must receive a copy of the $824,600 bond before mining commences.
11. This substitute water supply plan may be revoked or modified at any time should it
oe determined that injury to other water rights has or will occur as a result of this
plan.
12. If this plan will not be made absolute by a water court action by the plan's
expiration date, a renewal request must be submitted to this office with the
statutory fee(currently$217)at least 45 days prior to the expiration date of this
plan (by November 16, 2004).
13. Should this substitute water supply plan expire without renewal or be revoked prior
to adjudication of a permanent plan for augmentation, all excavation of product
from below the water table, and all other use of water at the pit, must cease
immediately.
JAN-13-2:03 MON 03: 17 PM ROCKY MTh CONSULTANTS FAX NJ. 30E6656959 9. 05
Mr. Doug Seely, P.E.
December 30, 2002
Page 4
14. In accordance with amendments to Section §25-8-202-(7), C.R.S. and "Senate Bill
89.181 Rules and Regulations'adopted on February 4, 1992, the State Engineer
shall determine if this substitute water supply plan is of a quality to meet
requirements of use to which the senior appropriation receiving the substitute
supply has normally been put. As such, water quality data or analyses may be
requested at any time to determine if the requirement of use of the senior
appropriator is met.
IS. Acceptance of these conditions is assumed unless a letter to the contrary is
received by this office, the Division office (Dave Nettles, 800 8th Avenue, Suite
321, Greeley, CO 80631) and the District 2 Water Commissioner(Robert Stahl.
9378 Weld County Road 25, Ft. Lupton, CO, 80621)within two weeks of your
receipt of this letter.
Please contact Joanna Williams of this office or Dave Nettles, in Greeley at (970) 352-
8712, if you have any questions concerning this approval. We conclude that approval of this
substitute water supply plan does not imply a position by this office on any related litigation.
Sincerely,
7/ 2 6-171
Kenneth W. Knox
Chief Deputy State Engineer
Attachment
cc: Dave Nettles,Assistant Division Engineer
Robert Stahl, Water Commissioner,Water District 2
George Zadel, Northern Colorado Constructors, Inc.
Gary Witt, Wright Water Engineers, Inc_
D:\011-009\170gdw\NCCI Pit 1 Approval Letter.doc
WEED MANAGEMENT PLAN
NCCI PIT #1
PREPARED FOR:
NORTHERN COLORADO CONSTRUCTORS
18100 WELD COUNTY ROAD 19
JOHNSTOWN, CO 80534
PREPARED BY:
ROLLIN CONSULTING
840 EAGLE DRIVE
EATON, CO 80615
970-454-0404
FEBRUARY 14, 2002
Weed Management Plan
Site Location
The NCCI Pit #1 is a 102 acre parcel at the northwest corner of the intersection of Weld
County Roads 25 and 18 two miles northwest of Fort Lupton, Colorado. It is in the East 1/2
of the Southeast 1/2 of Section 24 Township 2 North, Range 67 West. The land is currently
used for pasture of cattle. The proposed use is for a gravel pit.
Objective
To control undesirable plants in Weld County and that occur on the property, a weed control
plan is proposed. Plants listed in the Weld County Code Chapter 15 —Vegetation and found
on the property include: Scotch Thistle, Musk Thistle and possibly Canada Thistle.
Management Techniques
The methods of control will be cultural, mechanical, biological and chemical. These methods
are defined as follows:
Cultural - The method or management practices encourage the growth of desirable plant to
crowd out or discourage the growth of noxious weeds.
Mechanical - The method and practices physically disrupt the growth of the plant and include
mowing, tilling, burning, flooding, mulching, hoeing or hand pulling.
Biological—The use of organisms such as sheep, goats, cattle, insects and plant diseases to
disrupt plant growth of undesirable plants.
Chemical—The use of herbicides or plant regulators to disrupt the growth of undesirable
plants.
The site has a mix of wetlands and flat pasture areas. There were no noxious weed found in
the wetland areas. The flat areas where there is disturbance of the surface Scotch Thistle and
Musk Thistle were found. There is also the possibility of some Canada Thistle.
Wed management for the site will be as follows:
Scotch and Musk Thistle:
The site will be treated with herbicide during the rosette stage. Herbicide may be used to the
bud stage. Mowing will be used, as needed, during the growing season to prevent the plants
from going to seed.
Canada Thistle
The site will be treated with herbicide during the rosette stage to the bud stage. Mowing will
be used during the growing season to prevent the plants from going to seed.
Should other noxious weeds be found on the site they will be managed in a manner as outlined
in the Guidelines For Noxious Weed Management Plans as provided by the Weld County
Department of Public Works.
This plan was prepared from information and help provided by Mr. Ron Broda.
RC ROLLIN CONSULTING
970-454-0404
June 12, 2003
Mr. Chris Gathman
Weld County Planning
Hand Delivered
Dear Mr. Gathman,
Enclosed please find the following information:
2 - Copies of a well monitoring plan.
2 - Copies of a weed control plan.
1 - Copy of a substitute water supply plan.
1 - Copy of the approval letter for the plan.
If you have questions or comments please contact me.
Respectfully,
Rollin Co ulting
K Rollin P.E.
99-517-002 NCCI
..----
840 EAGLE DRIVE, EATON, COLORADO 80615
DEC-03-2002 TUE 04:33 PM K P KAUFFMAN FAX NO. 303 825 4825 P. 02
K. P. KAUFFMAN COMPANY. INC.
\ WORLD TRADE CENTER
1675 apoADwAY,SUITE 2800
DENVER,COLORA00 80202-4628
T¢LC►nOnt(303)626^4922
December 3, 2002
FACSIMILE(303)825-4825
wwwkpk.Com ..
VIA FACSIMILE: (970) 304-6498
HARD COPY TO FOLLOW VIA
CERTIFIED UNITED STATES MAIL
Planning Commissioner
Weld County Planning Commission
1555 N. 17 Avenue
Greeley, CO 80631
RE: Northern Colorado Constructors, Inc.
Proposed Special Use Permit
KPH - Glenn Horton #1-#2 Wells
East/2 of SE/4 of Section 24 T2N-R67W, 6th PM
Weld County, State of Colorado
Dear Sir or Madam:
r
Please be advised that K. P. Kauffman Company, Inc.
("KPK") received notice for today' s Weld County Planning
Commission Meeting without proper notification of the time
of the meeting. KPK has not reviewed Northern Colorado
Constructors, Inc. surface plan or has not been notified by
the developer.
KPK has mineral interest within the subject property
and will need a Surface Use Agreement before any surface
development is performed to the said property. Until such
time, KPK is objecting of the proposed special use permit
for mining and gravel until KPK can review the surface plan
and formalize a surface agreement.
Should you have any questions please contact me at
anytime. Thank you for your attention to this matter.
shoerel ,
IP. a{ EMAN COMPANY, INC.
J'a on D. illey, RLP
La d man ger
Hello