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HomeMy WebLinkAbout20032668.tiff Weld Count; LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING {°°` 1011 ELEVENTH AVENUE d _,.,, P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F.LIND (970)353-2323 KIM R.LAWRENCE (970)356-9160 TELECOPIER P.ANDREW JONES (970)356.1111 RICHARD T.LiPUMA ken(aIblaw.com KELLY J.CUSTER September 12, 2003 Patina Oil & Gas Corporation 1625 Broadway, Suite 2000 Denver, CO 80202 Attention: David Siple and P. David Padgett Re: Tire Mountain 2nd Am USR-842 Township 3 North, Range 65 West, 6th P.M. Section 32: S/2N/2SE/4 Weld County, Colorado Gentlemen: Enclosed please find a preliminary updated drawing regarding the Tire Mountain site. We have included (highlighted in green)the drill site range, operations area and flow lines based upon your letter of September 2, 2003. Please review the enclosed diagram and contact me at your earliest convenience. Very truly yours, LIND, R NC TTENHOFF LLP Kenneth F. in KFL/cg Enclosure pc: Vern Nelson, P.E. Jarrald Jamison Department of Planning Services Glen Hoynoski p.s. Vern, Jerry and Sheri: Z,d-cf) Your drawings also include designated areas for shipping, storing and •rocessin• which is highlighted in pink. Please call me with any comments. 4 EXHIBIT F:\KFL\JAMISON\PATINA LTR.wpd //� ig.4 H 4118 I I .. _�' 3 i i i kt, �' / >1?-_/1, P. _�9 O cet 5114 f L d. {" / ' l ,� F �/ a........ A 000azi;iiss "ai°9":°a.e [ULa1 xl 3200000 �I O demo z 4 e �— \ .... ¢ .parcel o � 73300000ia�`w. yy \<, \ \ ��f•`uF.\F j •, ii �x co a \�o„ro .\. �pooe.m..r3. \� _� ?. co,,,,,,0 No. N io7o: \ \\;t - _� _, �N V n. e 0000000o�;i:az�°o�5No. 5 q o oa able�. / 'I` aa.a.zeE ® .................,...............,.............. ....— ,,,n„...., a1._ .,., aw CELL 0IMEV4W TABLE \I ••y 4:.:::::::. • •• • P ATEIGON BOTTOM :::p A• •• yY�i •• •~i' . tiJi•A• OImENSIGN AT ORIGINAL OIMENsipy GROUND rm ••::: • •A a:::-.4.:::::::: gO•••le "1-5 s 5 is —r-x_:PNI •• AN•.• • iiNE••• A• A• •.. •• w , •= C====1,41,0:•:•°,===.:=::!,• l E!!!!I5 e v-,xnit?� ,�••ii I20 z •` ---. v. .iti •4 se„,„,, A ,._• °• — s.al�o, y SCALE AS SNLMry 221EE"'CEcASE`M I TIRE N, COON, INC. JAR BY s� [tn REVIEW PROJECT Na 0 -04i LAVERN C. NELSON P.E DATE S5 zoG3 EO ao63 HUDSON, CO_ORA OO e VIC IN1 iY ndP.PLOT PLAN,DETAILS/ III Weld County Planning Department ,;7-r1 °PEKE • ula 2 003 LIND, LAWRENCE & OTTENHOFF LLP Err I�/ED ATTORNEYS AT LAW C THE LAW BUILDING • 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F.LIND (970)353-2323 KIM R.LAWRENCE (970)356-9160 TELECOPIER P.ANDREW JONES (970)356-1111' RICHARD T.LiPUMA kenallolaw.com KELLY J.CUSTER August 26, 2003 Colorado Department of Public Health & Environment HMWMD-B2 4300 Cherry Creek Drive South Denver, CO 80246-1530 Attention: Glenn F. Mallory Re: Tire Mountain, Inc. Dear Mr. Mallory: • Enclosed please find a revised Cost Calculation related to financial assurance for cover at Tire Mountain. This revision has been made pursuant to your letter dated August 1, 2003. Please review this latest information and we would request that you or Mira Neumiller contact Vern Nelson (phone 970-352-6362). The first public hearing is scheduled for September 4, 2003 and we would appreciate your review and comments sometime prior to the middle of September. Very truly yours, LIND, L E & OTTENHOFF LLP K n ind KFL/cg Enclosure pc: Weld County Department of Planning Servi es Weld County Department of Public Health & Environment Jarrald Jamison Vern Nelson, P.E. F;\XFL\JAMISON\COLO.PUBLIC.HEALTH3.wpd = EXHIBIT TIRE MOUNTAIN, INC. Cost Calculation For Dirt Cover At Closure Prepared Aug. 15, 2003 by LaVern C. Nelson, P.E. 1. The area of tire surface to be covered at final closure, assuming all planned and existing tire storage pits are filled to four feet above adjacent ground utilizing a 1:1 slope for tires above the adjacent ground, is as follows: Cell Design Cell Filled Surface Area Number Surface Dimension Dimension Filled (sq.ft.) of Cells Area(sq.ft.) 102' x 250' 105' x 253' 26,565 55 1,461,075 102' x 305' 105' x 308' 32,340 18 582,120 102' x 285' 105' x 288' 30,240 1 30,240 102' x 220' 105' x 223' 23,415 1 23,415 50' x 305' 53' x 308' 16,324 1 16.324 76 2,113,174 2. The volume of earth to be moved to cover tire surface with 2 feet of dirt assuming a shrinkage factor of 25% is: 2,113,174 sq.ft. x 2 ft. x 1.25/27cu.ft. per cu.yd. = 195,664 cu.yd. 3. The cover dirt availability for final cover using dirt from the 50-foot wide fire lanes is: The total length of fire lanes upon completion of all cell filling is 38,627 feet. Required end area of fire lane excavation is: 195,664 cu.yd. x 27/38,627 = 136.77 sq.ft. At a 4-foot depth of fire lane excavation, the average width of excavation is: 136.77 sq.ft./4 ft. = 34.19 feet. 34.19 ft. =top width+ (top width—16 ft*)/2; then w*= 34.19 x 2 +16/2 =42.19 ft. *Using 2:1 slope in excavation and w representing top width Thus the dirt available in the built-up fire lanes is totally adequate for final cover. 4. The original design height of fire lanes is seven (7)feet. The top four(4) feet of that 7-foot embankment would be used to provide the desired cover over the stored tires. Based upon the 4-foot depth of cut and the calculated 136.71 sq.ft. end area, the top width(w) of the fire lane excavation, as shown above, is 42.19 feet and the bottom width is 42.19 ft.- 16 ft. = 26.19 ft. when cut to the prescribed 2:1 side slopes. A 3.9-foot horizontal ledge remains at each side of the excavated fire lane which will be the support or base for the tire cover dirt that is to be placed on the sloped tire pile. 5. The foregoing analysis shows at completion of all tire cells(at an estimated 10 years hence), that among the other detailed calculations, the total earthwork yardage needed to cover all cells with 2 feet of dirt is 195,664 cu. yds. and that there are a total of 76 tire cells planned for that time. Thus the average dirt volume required to cover each tire cell is 195,664 cu.yd./76 cells or 2,574.5 cu.yd. per cell. 6. The cost to move the soil from the adjacent fire lanes onto the stored tires is based upon the estimated cost of a bulldozer at year 2003. That cost is $1.70 per cu. yd. according to the letter quote given to the Colorado Department of Health and Environment by Mountain Constructors dated July 7, 2003. A copy of that letter is attached hereto. Therefore,the estimated average cost for dirt moving to cover each cell is 2,574.5 cu.yd. x $1.70 = $4,376.65, say $4,377. There are presently 42 cells filled and 4 in the working stage for a total of 46 cells that would be covered now should closure occur at this time. The total cost for dirt cover and closure of 46 cells at year 2003 is estimated as follows: Dirt Cover 46 cells x $4,377 = $201,342 Supervision 3,500 Miscellaneous 3,000 Total Cost $207,842 7. The cost for tire cell cover and supervision and miscellaneous in future years can be adjusted for inflation by using the implicit price deflator or its successor published by the U. S. Department of Commerce, or other mutually agreeable inflation factor. The adjusted cost for dirt cover can be applied to the number of actual cells to be covered. The total cost in future years can be determined by adding the adjusted cost of supervision and miscellaneous to the calculated dirt cover cost as is appropriate for each succeeding year. • July 7, 2003 Mr. Glenn F. Mallory Solid Waste Unit, Compliance Program Hazardous Materials and Waste Management Division Colorado Department of Health and Environment 4300 Cherry Creek Dr. S. Denver, CO 80246-1530 RE: Amended USR-842 (Tire Mountain) Financial Assurances for fire fighting and final closure. This letter is to confirm our availability to perform emergency work, such as fire fighting and dirt replacement as a result of its use for temporary cover to smother fire and to cover filled tire pits are to be filled to grade with soil at that same time. A Caterpillar D7 and a Caterpillar 623 Scraper is available for emergency dirt movement. The Caterpillar D7 is available for final cover that is anticipated in 2023, which is 20 years hence. In an emergency such as a fire, the dozer will be used to push dirt over the tires from the adjacent fire lanes while the scraper will be used to replace the used fire lane dirt from the available dirt replacement locations as shown on the plans. For final cover in 2023, the dozer will be used to push dirt from the existing fire lanes onto the top of the tires. It is estimated that the dozer has a production rate of about 76 cubic yards per hour. At its current rate of $130.00 per hour, the cost of material moved is $1.70 per cubic yard. It is estimated that the scraper has a production rate of about 90 cubic yards per hour. At its current rate of $150.00 per hour, the cost of material moved is $1.50 per cubic yard. The above rates are expected to rise as time passes due to inflationary influences. Based upon an estimated inflation rate of 2% per year, the rate 20 years hence would be $158.47 per hour for the dozer and $193.17 per hour for the scraper. Based on that predicted cost for the dozer, the cost for moving cover dirt onto the tires in 2023 would be $2.09 per cubic yard. Costs for intervening years would be increased in accordance with the inflation rate for that time. Each here-in equipment hourly cost includes a qualified equipment operator. = EXHIBIT P.O. BOX 405 • PLATTEVILLE.COLORADO 80651-0405 • (970)785-6161 6 Page 2 Glenn Mallory Since the work anticipated by this letter may be as much as 20 years hence, no confirmation of actual equipment costs can be given for a time so far in advance. However, it is our best estimate of conditions and costs that can now be given. If you have any questions or require further information, please feel free to call. Sincerely, 9Oe Joe Kuntz President JK/aj Corporate Sec (seas) Weld E , LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE (970)353-2323 KENNETH F. ND (970)356-9160 KIM R.LAWREENCE TELECOPIER (970)356-1111 RI ANDREW JONES ken( IIoIaw.com RICHARD T.LIPUMA KELLY J.CUSTER October 7, 2003 Patina Oil & Gas Corporation 1625 Broadway, Suite 2000 Denver, CO 80202 Attention: P. David Padgett Re: Tire Mountain 2nd Am USR-842 Township 3 North, Range 65 West, 6th P.M. Section 32: S/2N/2SE/4 Weld County, Colorado Dear Mr. Padgett: Enclosed please find a new USR plat page (revised October 6, 2003) which has been modified pursuant to our telephone conversations of October 6, 2003. For reference, the 200' x 300' operations area has not been modified but the range for drill site has been relocated 10' further to the East. By moving the drill site 10' to the East, this allows Tire Mountain to maintain the 150' State required distance from all tire cells. Additionally, the 10' relocation is still within the allowance for drill sites in accordance with Oil and Gas Conservation Commission regulations. Specifically,the eastern boundary of the 20'x 100' drill site is located 916.48' West of the East section line of Section 32. Based upon our telephone conversations and this submittal, the revised plat dated October 6, 2003 will be the final plat for which we seek approval by the Board of County Commissioners at the hearing October 22, 2003. We are sending a copy of this letter and plat to Sheri Lockman at the Department of Planning Services but we would appreciate any communication that you can provide to Ms. Lockman to confirm Patina's acceptance of this revised plat. Ms. Lockman's mailing address is 1555 North 17`h Avenue, Greeley, CO 80631 or you can contact her by e-mail at slockman(a)co.weld.co.us. F:\XFLUAMISON\PATINA2 LTR.wpd • g �y�Rn Patina Oil & Gas Corporation October 7, 2003 Page 2 Thank you very much for your continued cooperation in this matter. Very truly yours, LIND, LAW E CE ENHOFF LLP Kenneth F. Lind KFL/cg Enclosure pc: Vern Nelson, P.E. Jarrald Jamison Department of Planning Services Schirmer Engineering F:UffLUAMISON\PATINA2 LTR.wpd STATE OF COLORADO Bill Owens,Governor Douglas H.Benevento,Executive Director OF'C0z, Dedicated to protecting and improving the health and environment of the people of Colorado 0-, ^ ' 4300 Cherry Creek Dr.S. Laboratory Services Division * G°' * Denver,Colorado 80246-1530 8100 Lowry Blvd. Phone(303)692-2000 Denver,Colorado 80230-6928 1g76 TDD Line(303)691-7700 (303)692-3090 Colorado Department Located in Glendale,Colorado of Public Health http://www.cdphe.state.co.us and Environment Weld County Planning Department GREELEY OFFICE SEP 0 8 2003 September 3, 2003 RECEIVED Mr. Jerry Jamison Tire Mountain, Inc. 12311 Weld County Road 41 Hudson, Colorado 80642 RE: Tire Mountain Disposal Facility, 2003 Annual Inspection Weld County, Colorado Dear Mr. Jamison, On Friday, August 29, 2003, a representative of the Solid Waste Unit of the Hazardous Materials and Waste Management Division (Division) inspected the Tire Mountain Disposal Facility, located about seven miles north of State Highway 52 near Hudson, in Weld County. The purpose of the inspection was to assess compliance of the facility with the Solid Waste Disposal Sites and Facilities Act, Title 30, Article 20, Part 1, C.R.S. as amended, and the Regulations promulgated thereunder, 6 CCR 1007-2 (Regulations). A copy of the inspection report is enclosed for your reference. The Board of County Commissioners of Weld County granted approval of an amended certificate of designation for Tire Mountain, Inc. on October 3, 1990. Discarded tires are brought to the facility for disposal, storage and recovery. After arriving at the site at 10:00 a.m., Cindi Etcheverry (Weld County Department of Public Health and Environment) and I were greeted by Jerry Jamison (owner) and Mike Jaso (manager), at which time I presented my credentials. The available operating records were found to be in good order. However, consistent with Condition 4 of the Division's May 23, 2003 letter to the Weld County Commissioners (i.e., concerning an application to expand the facility), the financial assurance has yet to be finalized. We then accompanied Jerry Jamison to observe the facility operations. During the inspection, it was observed that tires were stacked above existing grade in the cells, contrary to the current facility design drawings. However, a formal modification to the Weld County permit that would allow tire placement above grade within specified limits is currently being reviewed by Weld County. EMI EMI:1 and An. 84a Mr. Jerry Jamison September 3, 2003 Page 2 The results of the inspection indicate that the facility is operating in substantial compliance with the Regulations at this time,with the above exceptions (i.e.,pending finalization of the financial assurance and pending resolution regarding above grade tire placement). Please contact me at 303-692-3389 if you have any questions. Sincerely, , .,9 - Douglas M. Ikenberry Solid Waste Unit Compliance Program Enclosure Cc: Sherri Lockman, Weld County Department of Planning Services (w/o enclosure) Cindi Etcheverry, Weld County Department of Public Health and Environment (w/o enclosure) FILE: SW WLD TIR 1.2 COLORADO DEPARTMENT of PUBLIC HEALTH & ENVIRONMENT HAZARDOUS MATERIALS and WASTE MANAGEMENT DIVISION - SOLID WASTE DISPOSAL SITE AND FACILITY INSPECTION This inspection is conducted pursuant to TITLE 30,ARTICLE 20,Part 1,§ 113(6) C.R.S 11 : 00 AQ 9 Date: 8 -29 - 03 Time In: /0: DO a.m . Time Out: t 6 Z- . 4 3 a 0^ O3 Facility Name: TIRE MOUNTAIN Facility Location: 12311 Weld County Road 41 County: WELD ID: 123-LFL-040 Inspection Type: Ro of t M e Photos: Weather Conditions: S u rt Yl y Wind Speed &Direction: Ca(`1/4 Temperature: - 1O ° F Owner '` ' . Operator i' Org: JAMISON TOOL, INC. Org: TIRE MOUNTAIN, INC. Name: Jerry &Faye Jamison Name: Mike Jasso Address: 12311 WCR 41 Address: 12311 WCR 41 City: Hudson City: Hudson State: CO Zip: 80642 - State: CO Zip: 806. 42 - Phone: (303) 573-5744 Phone: 3035735744 Email: Email: FACILITY REPRESENTATIVES Name r r - `Title Phone -Teter Ja„vltsor, Owner - Same as adoue Mike Faso Mana5ele LOCAL GOVERNMENT REPRESENTATIVES . Name Agency Phone ' Ci s r4-cLeverry WCDPRE 970-304-6415 X ZZZo i�__ INSPECTORS Name Agency Phone tou5 kenbeyr,/ CD P (-1 303-69L-3389 9_,9x444.2.01. .., August,2003 -Page 1 of 4 Facility Representative Initia Facility Name: TIRE MOUNTAIN Date: 'S -Z9 - D3 ..`: 41 }! • I uAC S-el INr7PEGTORS, $u r;: Name > '4:11t>"' tAgener l ', s r*="4, Phone ;A' . August, 2003 -Page 2 of 4 Facility Representative Initial . Facility Name: TIRE MOUNTAIN Date: ,- 21 - 03 li,.; .Op) TIONS.' tOMP)CaTANG __ ,. i : 3 N r , Y 'r.N/A u Ili:-. Fatt o �f ;`Regulation > '. . >`YES. NO r. 1 Access Control 2.1.8 X 2 Adequate Signage 2.1.8 x 3 Minimize Nuisance 2.1.3 X 4 Adequate Intermediate Cover 1.2 X _ 5 Adequate Daily Cover 3.3.4(A) X 6 Alternate Daily Cover Type: 3.3.4(B) V 7 Final Cover Integrity 3.6.1(A)(2) 8 Compaction 2.1.10 2. 6dickli es ) 4 X 9 Equipment 3.3.2(E)4ro c .6 I Z to dui rs, K . 10 Waste Distributed in Smallest 2.1.10 9 railer , frada r X 11 Working Face Size (ht x lgth) 2.1.10 der tmw.er X 12 Restricted Unloading Area 2.1.10 )C 13 Wind Speed Monitoring 2.1.11 Y 14 Prevent Windblown Debris 2.1.11 X 15 Prevent Debris From 2.1.7 16 Perimeter Fence 2.1.8 P 17 Lack of Debris Accum. on 2.1.7 X 18 Dust Control 2.1.3 X' -- 19 Perimeter Run-On Controls 2.1.6 X 20 Water Diverted From 3.2.6(a) )t 21 Surface Water Drainage-No 2.1.10 K 22 Ground Water Monitoring 2.2 x 23 GW Mon. Syst. Properly 2.2.1(A) 2C 24 Explosive Gas Monitoring 2.3 ?C 25 ExGas Mon Syst. Properly 2.3.4 OPERATION RECORDS' ID Factor Regulation' Location YES NO NIA 1 Certificate of Designation 1.3.3 5;+r o f ctte c K lo-,- R O 2 Design &Operation Plan 2.4.1 It U 3 As-Built Operation Plan 3.4(D) >e 4 Waivers 3.4(E) & (F) X 5 Waste Characterization Plan 2.1.2(C) X 6 Waste Characterization 2.1.2(C)(2) X 7 Waste Types 3.3.2(C) 3 i+e c,4T e >( 8 Waste Volumes 3.4(A) ti 1' X 9 Financial Assurance 2.4.2(H) U) I P 10 Ground Water Monitoring 3.4(B) X 11 , Explosive Gas Monitoring 3.4(C) K 6 (.)17.-P = WorK to ?receSS. August,2003-Page 3 of 4 l Facility Representative Initial Facility Name: TIRE MOUNTAIN Date: Fj 2.R - OAS dP ' • GQRDS;- ID 'actior',:140.f::'i 5 2 .' .ReguYat�on <` ' YES NO N%A;, 12 Leachate 2.4.2(D) )( _ 13 Employee Training 2.1.2(B)(3) ?� i§4 q -Z-D3 14 Location Restriction 2.4.2(A) }{ 15 Closure&Post-Closure 2.4.2(F) s;+e oceiee- ?� HSRF: Yes Quantity Verification Method: Time PeriO rn :,..,, t:,..w t.:_�t ��,. .i;., �,:�t '.,.:e e, ptF t f:: ,L;i "::. h~ r.''•'>,ui� ,ti rt•,, August,2003 -Page 4 of 4 Facility Representative Initial SOLID WASTE DISPOSAL SITE AND FACILITY INSPECTION BACKGROUND INFORMATION REPORT . ;... . c; FACILITY INFORMATION c7O-t, 1,7g, Facility Name: TIRE MOUNTAIN Facility ID: 123-LFL-040 Facility Address: 12311 Weld County Road 41 Section: Township: Range: County: WELD Date of Last Inspection: 7/23/2002 Inspector: Doug Ikenberry Date Facility opened: 12:00:00 AM Comp. Status: Non-Compliant Anticipated closing date: 12:00:00 AM CD Issuing Jurisdiction: Weld County Commissioners CD Expansion date: CD Issue Date: 12:00:00 AM Acres added for disposal: Total acres added: Financial assurance type: Certificate of Deposit Financial assurance status: Subject to HSRF: YES NPL: NO ERS: NO PRIMARY FACILITY= Primary Facility Type: Landfill co-12-ea Acres permitted: 80 50 c�� �' Acres approved for (to'X 2 CO' X 1 5 disposal: 80 Vol. Approved: 694,444 Acres Constructed: 61 Vol. Used: 66,418 Acres remaining: 19 Vol. Remaining: 628,026 SECONDARY FACILI I Il.S Facility Type - - • t.. Facility Type! MONITORING INFORMATION' Monitoring Type Description Quantity Landfill Gas Ground Water Wells Leachate APPROVED WASTE STREAMS # Description Y/N # Description Y/N 1 Tires Y 2 Animal Burial N 3 Brine N 4 Industrial N 5 Ash N 6 Septage N August,2003-Page 1 of 2 Facility Representative Initial Facility Name: TIRE MOUNTAIN Date: 0-29 - b3 7 Bio Medical N 8 Water Treatment N 9 International Flight Waste N 10 Contaminated Soil N 11 Construction Demolition N 12 Asbestos Friable N 13 Sand Trap N 14 Inert Rubble N 15 Sludge N 16 Mine Waste N 17 Municipal Commercial N 18 Waste Water N OTHER PERMITS ' '' #` Description.; ; "` nl YIN `# Description YIN Mine Land Reclamation 1 Air N 2 Bureau N 3 Water N _. '. QITATERLY REPORTS"' uarter 1- ,a _ Quarter 2 k; `: .,' darter 3 , I Qaarter 4 ' 7,000 14,092 12,547 15,398 DEFICIENCY;NOTED'AT LAST INSPECTION. .' Factor s° Proposed Resolutiod Status/Date OPERATION RECORDS':-.COMPLIANCE ID Factor'' Regulation".a Location 1 Certificate of Designation 1.3.3 Site 2 Design & Operation Plan 2.4.1 Site 3 As-Built Operation Plan 3.4(D) Site 4 Waivers 3.4(E) & (F) Site 5 Waste Characterization Plan 2.1.2(C) Site 6 Waste Characterization Records 2.1.2(C)(2) Site 7 Waste Types 3.3.2(C) Site 8 Waste Volumes 3.4(A) Site 9 Financial Assurance 2.4.2(H) Site 10 Ground Water Monitoring 3.4(B) Site 11 Explosive Gas Monitoring 3.4(C) Site 12 Leachate 2.4.2(D) Site 13 Employee Training 2.1.2(B)(3) Site _ 14 Location Restriction Demonstration 2.4.2(A) Site 15 Closure & Post-Closure 2.4.2(F) Site August,2003 -Page 2 of 2 Facility Representative Initial LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F. (970)353-2323 LIND (970)356-9160 KIM R.LAWRENCE TELECOPIER (970)356-1111 P.ANDREW JONES ken®Ilolaw.com RICHARD T.LiPUMA KELLY J.CUSTER October 14, 2003 Colorado Department of Public Health & Environment HMWMD-B2 4300 Cherry Creek Drive South Denver, CO 80246-1530 Attention: Mira Neumiller • Re: Tire Mountain, Inc. (Financial Assurance) Dear Ms. Neumiller: Enclosed please find the following original signed documents: (1) Two original Collateral Account Control Agreements including Exhibits "A" and "B"; and (2) Security Agreement including Exhibit "A". As to the Collateral Account Control Agreements, it is necessary that the Director(as Creditor)sign and date the signature line on Page 3. Both Control Agreements including Exhibit "A" then need to be mailed to the Schwartz Mabry Group which is the Merrill Lynch representative firm. The mailing address for Schwartz Mabry Group is Plaza Tower One - Suite 1100, 6400 South Fiddler's Green Circle, Englewood, CO 80111-4912. Merrill Lynch will then sign both documents and, by a copy of this letter, we are requesting that Merrill Lynch return a signed original to you and a copy to our firm on behalf of Tire Mountain and Jerry Jamison. You should retain in your files the original Security Agreement (enclosed) as that becomes a part of the Collateral Account Control Agreement. We have retained a copy of the Security Agreement in our files. ' F:U(FL\JAMISON\COLO.PUBLIC.HEALTH4.wpd a4 • I y Colorado Department of Public Health & Environment October 14, 2003 Page 2 As you can see, Merrill Lynch has already established an account(#416-10122)but it has not yet been activated as the bonds will not be transferred to this account until all documentation has been submitted to Merrill Lynch and signed. As to Exhibit "B" on the Collateral Account Control Agreements, this is the sample notice that you would need to complete on behalf of the State and submit to Merrill Lynch at the address as indicated which transfers total control of the account to the State except for the fact that the Jamisons will receive the interest payments upon their bonds. Regarding the pledged accounts,we are also providing to you an account statement dated September 30, 2003 which provides the estimated market price and market value of the bonds as pledged by Jamisons to the State. I have been advised by Merrill Lynch that the State will receive a regular accounting regarding the pledged accounts once the account has been activated. It is my understanding that the statements should be forwarded to the State at the above address to your attention. If you have any questions regarding this letter or enclosures, please call me at your earliest convenience. Very truly yours, LIND, LAW OTTENHOFF LLP Kenneth . Lind KFL/cg Enclosure pc: Weld County Department of Planning Services Weld County Department of Public Health & Environment Jarrald Jamison The Schwartz Mabry Group Vern Nelson, P.E. F:UCFLWAMISON\COLO.PUBLIC.HEALTH4.wpd STATE OF COLORADO UNIFORM COMMERCIAL CODE—SECURITY AGREEMENT Tire Mountain, Inc. , Jerreld A. Jamison and Debtor: a Colorado corporation Faye L. Jamison Name: (Exact Legal Name Required) Address: 15721 WCR 10 Fort Lupton CO 80621 Residence: No. Street City State Business: 12311 WCR 41 Hudson CO 80642 No. Street City State Colorado Department of Public Health and Environment, Secured Party: Hazardous Materials and Waste Management Division, Name: a Regulatory Agency of the State of Colorado 4300 Cherry Creek Drive South Denver CO 80246-1530 Address: No. Street City Slate Debtor, for consideration, hereby grants to Secured Party a security interest in the following property and any and all addi- tions, accessions and substitutions thereto or therefor(hereinafter called the "COLLATERAL"): Merrill Lynch Account 416-10122 (Merrill Lynch Collateral Account Control Agreement) To secure payment of-theindebtedttess-evidenced-by to ratty pP0pifi+nory noTe oTiTten dale fferNiTIT payabterto-BieSaTiretPafty,or order, asTolrows: for closure and post-closure in connection with Debtor' s obligation demonstrated by financial responsibility under Section 1.8.9 of the regulations pertaining to solid waste disposal sites and facilities (6 CCR 1007-2) , as amended. The preliminary financial assurances worksheet is attached as Exhibit "A". DEBTOR EXPRESSLY WARRANTS AND COVENANTS: I. That except for the security interest granted hereby Debtor is, or to the extent that this agreement states that the Collateral is to be acquired after the date hereof,will be,the owner of the Collateral free from any adverse lien. security inter- est or encumbrances; and that Debtor will defend the Collateral against all claims and demands of all persons at anytime claiming the same or any interest therein. 2. The Collateral is used or bought primarily for: ❑ Personal, family or household purposes; ❑ Use in farming operations; 3 Use in business. 3. That Debtor's residence, state of organization or chief executive office is as stated herein. and the Collateral will be kept at Merrill Lynch in accordance with a Collateral Account Control Agreement attached hereto as Exhibit "B". No.and Street City County State 4,4f-any ef-thwCat1ateralis•eih-gas;eemineM3sta fie ex-traeted-er-tirrtbertodte-car orgtmdsahich-arr=T,r SlTi io become -fizroresrsaid-C6ltaTe7al-Co-ncernr Tffe TalfowtngaesEfiEeer rear estate situate in the County -of- an33TaTe oFCoTorado,to wit: No.UCC 1205. Rev.8-01. UNIFORM COMMERCIAL CODE—SECURITY AGREEMENT rE Bradford Publishing. 1743 Wazee St..Denver.CO 80202—(303)292-2500—www.bradfordpuhlishing.com— 1-03 5. Promptly to notify Secured Party of any change in the location of the Collateral. 6. To pay all taxes and assessments of every nature which may be levied or assessed against the Collateral. 7. Not to permit or allow any adverse lien,security interest or encumbrance whatsoever upon the Collateral and not to permit the same to be attached or replevined. 8. That the Collateral is in good condition, and that Debtor will, at Debtor's own expense, keep the same in good condition and from time to time, forthwith, replace and repair all such parts of the Collateral as may be broken, worn out, or damaged without allowing any lien to be created upon the Collateral on account of such replacement or repairs, and that the Secured Party may examine and inspect the Collateral at any time. wherever located. 9. That Debtor will not use the Collateral in violation of any applicable statutes. regulations or ordinances. I0. The Debtor will keep the Collateral at all times insured against risks of loss or damage by fire(including so-called extended coverage),theft and such other casualties as the Secured Party may reasonably require,including collision in the case of any motor vehicle,all in such amounts,under such forms of policies,upon such terns,for such periods,and written by such companies or underwriters as the Secured Party may approve, losses in all cases to be payable to the Secured Party and the Debtor as their interest may appear.All policies of insurance shall provide for at least ten days'prior written notice of cancel- lation to the Secured Party;and the Debtor shall furnish the Secured Party with certificates of such insurance or other evidence satisfactory to the Secured Party as to compliance with the provisions of this paragraph. The Secured Party may act as attor- ney for the Debtor in making,adjusting and settling claims under or cancelling such insurance and endorsing the Debtor's name on any drafts drawn by insurers of the Collateral. UNTIL DEFAULT Debtor may have possession of the Collateral and use it in any lawful manner, and upon default Secured Party shall have the immediate right to the possession of the Collateral. DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the following events or con- ditions: (a) default in the payment or performance of any obligation, covenant or liability contained or referred to herein or in any note evidencing the same; (b) the making or fumishing of any warranty,representation or statement to Secured Party by or on behalf of Debtor which proves to have been false in any material respect when made or furnished; (c) loss, theft, damage, destruction, sale or encumbrance to or of any of the Collateral, or the making of any levy seizure or attachment thereof or thereon; (d) death,dissolution,termination of existence,insolvency,business failure,appointment of a receiver of any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding under any bankruptcy or insolvency laws of, by or against Debtor or any guarantor or surety for Debtor. UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure, Secured Party may declare all Obligations secured hereby immediately due and payable and shall have the remedies of a secured party under Article 9 of the Colorado Uniform Commercial Code. Secured Party may require Debtor to assemble the Collateral and deliver or make it available to Secured Party at a place to be designated by Secured Party which is reasonably convenient to both parties. Expenses of retaking, holding, preparing for sale, selling or the like shall include Secured Party's reasonable attorney's fees and legal expenses (including the allocated fees and expenses of in-house counsel) and such portion of the Secured Party's overhead as it may in its reasonable judgment deem allocable to and includable in such expenses. No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on a future occasion. The taking of this Security Agreement shall not waive or impair any other security Secured Party may have or hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such additional security waive or impair this Security Agreement;but Secured Party may resort to any security it may have in the order it may deem proper, and notwithstanding any collateral security,Secured Party shall retain its rights of set-off against Debtor. All rights of Secured Party hereunder shall inure to the benefit of its successors and assigns; and all promises and duties of Debtor shall bind Debtor's heirs,executors or administrators or Debtor's successors or assigns. If there be more than one Debtor, their liabilities hereunder shall be joint and several. Dated: October , 2003 Debtor: Tir Mountain, Inc. By: Colorado A. miso rest en t Debtor's state of organization,or if not a regi,uered organization.chief executive officer a aid A. a Debtor's State Identification No. 0 Fay . Ja i No.UCC 1205. (Page 21 TIRE MOUNTAIN, INC. Cost Calculation For Dirt Cover At Closure Prepared Aug. 15, 2003 by LaVern C. Nelson, P.E. 1. The area of tire surface to be covered at final closure, assuming all planned and existing tire storage pits are filled to four feet above adjacent ground utilizing a 1:1 slope for tires above the adjacent ground, is as follows: Cell Design Cell Filled Surface Area Number Surface Dimension Dimension Filled (sq.ft.) of Cells Area (sq.ft.) 102' x 250' 105' x 253' 26,565 55 1,461,075 102' x 305' 105' x 308' 32,340 18 582,120 102' x 285' 105' x 288' 30,240 1 30,240 102' x 220' 105' x 223' 23,415 1 23,415 50' x 305' 53' x 308' 16,324 1 16.324 76 2,113,174 2. The volume of earth to be moved to cover tire surface with 2 feet of dirt assuming a shrinkage factor of 25% is: 2,113,174 sq.ft. x 2 ft. x 1.25/27cu.ft. per cu.yd. = 195,664 cu.yd. 3. The cover dirt availability for final cover using dirt from the 50-foot wide fire lanes is: The total length of fire lanes upon completion of all cell filling is 38,627 feet. Required end area of fire lane excavation is: 195,664 cu.yd. x 27/38,627 = 136.77 sq.ft. At a 4-foot depth of fire lane excavation, the average width of excavation is: 136.77 sq.ft./4 ft. = 34.19 feet. 34.19 ft. =top width+(top width—16 ft*)/2; then w*= 34.19 x 2 +16/2= 42.19 ft. *Using 2:1 slope in excavation and w representing top width EXHIBIT "A" Thus the dirt available in the built-up fire lanes is totally adequate for final cover. 4. The original design height of fire lanes is seven (7)feet. The top four(4) feet of that 7-foot embankment would be used to provide the desired cover over the stored tires. Based upon the 4-foot depth of cut and the calculated 136.71 sq.ft. end area, the top width (w) of the fire lane excavation, as shown above, is 42.19 feet and the bottom width is 42.19 ft.- 16 ft. = 26.19 ft. when cut to the prescribed 2:1 side slopes. A 3.9-foot horizontal ledge remains at each side of the excavated fire lane which will be the support or base for the tire cover dirt that is to be placed on the sloped tire pile. 5. The foregoing analysis shows at completion of all tire cells (at an estimated 10 years hence), that among the other detailed calculations, the total earthwork yardage needed to cover all cells with 2 feet of dirt is 195,664 cu. yds. and that there are a total of 76 tire cells planned for that time. Thus the average dirt volume required to cover each tire cell is 195,664 cu.yd./76 cells or 2,574.5 cu.yd. per cell. 6. The cost to move the soil from the adjacent fire lanes onto the stored tires is based upon the estimated cost of a bulldozer at year 2003. That cost is $1.70 per cu. yd. according to the letter quote given to the Colorado Department of Health — and Environment by Mountain Constructors dated July 7, 2003. A copy of that letter is attached hereto. Therefore, the estimated average cost for dirt moving to cover each cell is 2,574.5 cu.yd. x $1.70= $4,376.65, say $4,377. There are presently 42 cells filled and 4 in the working stage for a total of 46 cells that would be covered now should closure occur at this time. The total cost for dirt cover and closure of 46 cells at year 2003 is estimated as follows: Dirt Cover 46 cells x $4,377 = $201,342 Supervision 3,500 Miscellaneous 3,000 Total Cost $207,842 7. The cost for tire cell cover and supervision and miscellaneous in future years can be adjusted for inflation by using the implicit price deflator or its successor published by the U. S. Department of Commerce, or other mutually agreeable inflation factor. The adjusted cost for dirt cover can be applied to the number of actual cells to be covered. The total cost in future years can be determined by adding the adjusted cost of supervision and miscellaneous to the calculated dirt cover cost as is appropriate for each succeeding year. I, • July 7, 2003 Mr. Glenn F. Mallory Solid Waste Unit, Compliance Program Hazardous Materials and Waste Management Division Colorado Department of Health and Environment 4300 Cherry Creek Dr. S. Denver, CO 80246-1530 RE: Amended USR-842 (Tire Mountain) Financial Assurances for fire fighting and final closure. This letter is to confirm our availability to perform emergency work, such as fire fighting and dirt replacement as a result of its use for temporary cover to smother fire and to cover filled tire pits are to be filled to grade with soil at that same time. A Caterpillar D7 and a Caterpillar 623 Scraper is available for emergency dirt movement. The Caterpillar D7 is available for final cover that is anticipated in 2023, which is 20 years hence. In an emergency such as a fire, the dozer will be used to push dirt over the tires from the adjacent fire lanes while the scraper will be used to replace the used fire lane dirt from the available dirt replacement locations as shown on the plans. For final cover in 2023, the dozer will be used to push dirt from the existing fire lanes onto the top of the tires. It is estimated that the dozer has a production rate of about 76 cubic yards per hour. At its current rate of $130.00 per hour, the cost of material moved is $1.70 per cubic yard. It is estimated that the scraper has a production rate of about 90 cubic yards per hour. At its current rate of $150.00 per hour, the cost of material moved is $1.50 per cubic yard. The above rates are expected to rise as time passes due to inflationary influences. Based upon an estimated inflation rate of 2% per year, the rate 20 years hence would be $158.47 per hour for the dozer and $193.17 per hour for the scraper. Based on that predicted cost for the dozer, the cost for moving cover dirt onto the tires in 2023 would be $2.09 per cubic yard. Costs for intervening years would be increased in accordance with the inflation rate for that time. Each here-in equipment hourly cost includes a qualified equipment operator. P.O. BOX 405 • PLATTEVILLE,COLORADO 80651.0405 • (970)785-6161 Page 2 Glenn Mallory Since the work anticipated by this letter may be as much as 20 years hence, no confirmation of actual equipment costs can be given for a time so far in advance. However, it is our best estimate of conditions and costs that can now be given. If you have any questions or require further information, please feel free to call. Sincerely, 9ok Joe Kuntz • President JK/aj Corporate Sec (sea° ' 7- 3-02; 5:43PM: ' ' 3 1/ 7 Collateral Account Control Agreement Instructions: Complete Boxes A, B, C and Client and Creditor acknowledge that the following Names and Addresses and Sign Below assets are not covered by this Agreement even if shown, for information purposes, on a periodic 1.The Parties account statement for the Account, because Merrill The Parties to this agreement ("Agreement") are the Lynch is not the legal custodian of such assets: Client named below, the Creditor named below and money market deposit account (MMDA) balances, Merrill Lynch, Pierce, Fenner & Smith Incorporated shares of ML Ready Assets Trust, USA Government ("Merrill Lynch"). and USA Treasury money market funds and of the Merrill Lynch Institutional Funds, non-listed limited 2.The Pledged Account partnership interests, annuities and life insurance Box A contracts, and precious metals. Merrill Lynch will not Client has granted Creditor a security interest in be responsible for assuring that any of these assets Merrill Lynch account 416-10122 are not acquired with assets from the Account. ("Account") pursuant to a separate Security Agreement between Client and Creditor. 4.Client's Authority over the Account Until Creditor delivers to Merrill Lynch a Notice of If the Account will be a new Merrill Lynch account, Exclusive Control pursuant to section 6, Client will Client hereby instructs Merrill Lynch to transfer the have full authority to give instructions with respect to assets listed in Exhibit A to the Account.The Account assets in the Account in regard to voting and other shall be maintained as a cash securities account,and rights, but will not have the authority to give any will be titled "[Name of Client] Pledged Collateral entitlement orders with respect to, or terminate the Account for[Name of Creditor]." Account, without written consent by Creditor. Client's authority with respect to trading in the Account and The purpose of this Agreement is to perfect the receipt of income from the Account will be govemed Creditor's security interest in the Account by granting by the completion of boxes B and C, which authority Creditor control over the Account; however, this Creditor may revoke at any time by written notice Agreement does not create Creditor's security interest delivered to Merrill Lynch. in the Account inasmuch as Client and Creditor have a separate Security Agreement for that purpose. Box B Is Client permitted to trade in the Account? Client has not granted a security interest in the Yes Account to any party other than Creditor, except for If yes, except as otherwise provided in section 6, Merrill Lynch's broker lien referenced in section 7 and Merrill Lynch may comply with any trading instructions any lien for service fees to an Investment Manager or from Client or the Investment Manager or Agent Agent named in Box B in section 4. Merrill Lynch has named below without further consent by Creditor. not entered into a Control Agreement with respect to the Account with any other party and agrees that it will Print name of Investment Manager or Agent not do so while this Agreement is in effect. The designated by separate power of attorney or manager signing this Agreement on behalf of Merrill equivalent document on file with Merrill Lynch Lynch hereby represents, to the best of his or her knowledge,that no person other than Client,Creditor, Box C Merrill Lynch and any Investment Manager or Agent Is Client permitted to withdraw income? named in Box B in section 4 have any claim, lien or 4103D No interest in the Account or the assets in the Account. If yes, Client is authorized to receive all interest and regular cash dividends earned on assets in the All assets in the Account will be treated as financial Account monthly: assets under Article 8 of the New York Uniform by check Commercial Code. or by transfer to account no. 416-37881 3. Excluded Assets 7- 3-O2; 5:43PM: ; ; If an Investment Manager or Agent is named in Box of Exclusive Control or any instructions received from B,Creditor agrees that the assets in the Account are any person Merrill Lynch reasonably believes subject to Client's agreement with such manager or represents Creditor. Merrill Lynch has no duty to agent and that periodic payment of normal advisory investigate whether Creditor is authorized under the and service fees from assets in the Account pursuant Security Agreement to give such Notice of Exclusive to such an agreement is permitted without consent of Control or such instructions. Creditor. Client hereby agrees to indemnify and hold harmless 5.Control by Creditor Merrill Lynch, its officers, directors, employees and Merrill Lynch agrees to comply with any instructions it agents, and any Investment Manager or Agent named receives from Creditor at any time to transfer, sell, in Box B in section 4, against claims, liabilities and redeem, close open trades or otherwise liquidate any expenses arising out of maintenance of the Account assets in the Account (including instructions to pursuant to this Agreement (including reasonable transfer assets directly to, or into an account in the attorneys' fees), except if such claims, liabilities or name of, Creditor), without further consent by Client. expenses are caused solely by Merrill Lynch's or such All instructions to transfer assets from the Account manager's or agent's gross negligence or willful must be in writing. If Creditor is an entity, Merrill misconduct,respectively. Lynch is authorized to take instructions from any person Merrill Lynch reasonably believes represents Creditor hereby agrees to indemnify and hold Creditor. harmless Merrill Lynch, its officers, directors, employees and agents, and any Investment Manager 6.Notice of Exclusive Control or Agent named in Box B in section 4,against claims, Creditor may at any time deliver to Merrill Lynch a liabilities and expenses (including reasonable "Notice of Exclusive Control"substantially in the form attorneys' fees) arising out of Merrill Lynch's of Exhibit B. Upon receipt of such notice by the compliance with any instructions from Creditor with manager of the Merrill Lynch office servicing the respect to the Account except if such claims, liabilities Account, Merrill Lynch will cease complying with or expenses are caused solely by Merrill Lynch's or trading instructions from, or on behalf of, Client with such manager's or agent's gross negligence or willful respect to the Account, cease distributing to Client misconduct,respectively. interest and regular cash dividends earned on assets in the Account, and refuse to accept any other This Agreement does not create any obligations for instructions from Client intended to exercise any Merrill Lynch except for those expressly set forth in authority with respect to the Account except upon this Agreement. Instruction of Creditor. 10.Termination; Survival 7.Priority of Creditor's Security Interest Creditor may terminate this agreement by written So long as this Agreement is in effect, Merrill Lynch notice to Merrill Lynch. Merrill Lynch may termi-nate subordinates in favor of Creditor any security interest, this agreement on thirty (30) days written notice to lien, or right of setoff it may have, now or in the future, Creditor and Client. Upon notification by Creditor to against assets in the Account, except Merrill Lynch Merrill Lynch that Creditor's security interest in the may retain a prior lien on assets in the Account to Account has terminated, this Agreement will secure payment for assets purchased for the Account automatically terminate. Section 9, 'Responsibility and to collect normal commissions and service fees. and Protection of Merrill Lynch," will survive termination of this Agreement. 8. Duplicate Statements end Confirmations Merrill Lynch will send Creditor duplicate copies of 11. Effect of Agreement periodic account statements and trade confirmations, Client and Creditor agree that this Agreement if any,contemporaneously with those sent to Client. supplements the applicable Merrill Lynch account agreement with respect to the Account, and any 9. Responsibility and Protection of Merrill Lynch related agreement if the Account is a managed Except for permitting a transfer of assets from the account under a Merrill Lynch advisory program with Account in violation of section 4,Merrill Lynch will a manager named in Box B,and that it does not not be liable to Creditor for complying with instruc- abridge any rights that Merrill Lynch might otherwise tions from Client that are received by Merrill Lynch have, except as provided in section 7. If there is any before Merrill Lynch receives a Notice of Exclusive inconsistency between this Agreement and such Control in accordance with section 6. Merrill Lynch Merrill Lynch account agreements this Agreement will will not be liable to Client for complying with a Notice control. The Parties also acknowledge that there are 7- 3-02; 5:43PM; : 1 u 3/ 7 no other understandings or agreements with Merrill No amendment of, or waiver of a right under, this Lynch concerning the Account except for this Agreement will be binding unless it is in writing and Agreement, the Merrill Lynch account agreements signed by the party to be charged. and any agreement with an Investment Manager or Agent named in Box B to which Merrill Lynch may be 14.Severability a party. To the extent a provision of this Agreement is unenforceable,this Agreement will be construed as if 12. Governing law the unenforceable provision were omitted. This Agreement and the Account will be governed by the internal laws of the State of New York with 15.Successors and Assigns of Creditor respect to interpretation and enforcement. A successor to or assignee of Creditor's rights and obligations under the Security Agreement between 13.Amendments Creditor and Client will succeed to Creditor's rights and obligations under this Agreement. SIGNATURES ADDRESSES Client: Jerry e Jamison 15721 Weld Cty 10 Print ��/���� �A i5oW Fort Lupton, CO. 80621 Signaru��J/OAK �� date O3J' Title(if applicable) Director, Colorado Department of Public Health and Environment, Creditor: Hazardous Materials and Waste Management Division, a Regulatory Agency of the State of Colorado print name' signature date Title(an authorized officer) 'This is the name to whom periodic account statements and trade confirmations will be addressed unless another officer's name is provided to Merrill Lynch for this purpose. Merrill Lynch,Pierce, Fenner&Smith Incorporated: Address is the address servicing the Account as print name indicated on account statement. signature date Resident Vice President(or designee) This Agreement may be executed In counterparts,but the preparer should provide the completed original to Merrill Lynch with signed photocopy counterparts provided to Client and Creditor. 7- 3-O2; 5:43PM; 1 # 4/ 7 (Must be initialed by the creditor) Account No. —9/l - /O/„.2...e Exhibit A Use Exhibit A to list the assets to be transferred into the Merrill Lynch Pledged Collateral Account. If available,you can attach a copy of the most recent monthly account statement,initialed by the Creditor) and write"See attached statement"below.) Quantity Description 40,000 Denver Colo CY-CO Excise Tax Rv Cony SR A Feb01 5.007 sep or to 50,000 Denver Colo City-CO Arpt Rv Airprt Sys Rv FSA Amt Nov98 5.00; NOV IS SS 50,000 Colorado 11th FCS AT Rev Sist Charity OID MBIA Mar98 5.00% Dec 01 4.5- 50,000 E-470 Pub Hwy Auth Colo Rev Sr-Ser A OID MBIA Aug 97 5.002 Sep O/ 24 55,000 University Colo Univ Rev Enterprise Sys A OID MBIA Jul03 4.2` z 50,000 Dallas Fort Worth Tex RV Intl Arp A OID AMBAC Amt May03 5.00', Nov01 32 Code 1226-0198 Please transfer the above assets from ML Account 416-37881 to pledge account 416-10122. 41- 7197C. /2- � d e ry .mi . Faye Jamison 7- 3-O2; 5:43PM: : 1 # 5/ 7 Exhibit B Sample Notice of Exclusive Control [Letterhead of Creditor] Note: If this notice is sent by fax, it must be addressed to Resident Vice President with receipt confirmed by telephone, and the original mailed or-delivered to the office servicing the Account as indicated on the account statement October 3, 2003 Date: To: Resident Vice President Merrill Lynch,Pierce,Fenner 4 Smitb I t-potation Plaza Tower One, Suite 1108 6400 S. Fiddlers Green Circle Englewood, CO. 80111 (insert address of Merrill Lynch office servicing Account as indicated on Account Statement) RE:JerPldzd ol1atral Account number 416-10122 in the name of Pledged Collateral Account for Director, Colorado Department of Public Health name of Client and Environment, Hazardous Materials and Waste Management Division, a Regulatory Agency of the State of Colorado This is to notify Merrill Lynch that the above-referenced pledged collateral account("Account")is now under the exclusive control of Creditor named above. Merrill Lynch is hereby instructed to cease complying with trading instructions given by or on behalf of Client(named above)relating to said Account, to cease distributing interest and regular cash dividends earned on property in the Account,and to refuse to accept any other instructions from Client intended to exercise any authority with respect to the Account unless instructed by the undersigned on behalf of Creditor. Creditor warrants to Merrill Lynch that this Notice of Exclusive Control is lawful and authorized by the Security Agreement between Client and Creditor. All future instructions on the Account shall be given solely by the undersigned on behalf of Creditor unless further evidence of authority is provided to Merrill Lynch. Director, Colorado Department of Public Health and Environment, Hy: Hazardous Materials and Waste Management Division, a Regulatory print name Agency of the State of Colorado signature date title(an authorized officer) PATi NA OIL&GAS CORPORATION 1625 Broadway, Suite 2000 Denver, Colorado 80202 (303) 389-3600 (303) 389-3680 Fax October 20, 2003 Weld County-Department of Planning Services Attention: Ms. Sheri Lockman 1555 N. 17`1' Avenue Greeley, CO 80631 Re: 2" AmUSR-842 Township 3 North, Range 65 West, 6th P.M. Section 32: S/2N/2SE/4 Weld County, Colorado Ladies and Gentlemen: Under cover letter dated August 18, 2003, Patina Oil & Gas Corporation ("Patina") expressed its concerns regarding the proposed Site Specific Development Plan and Special Use Permit for a Commercial Junkyard and Salvage Yard on portions of the captioned property ("Property"). Patina worked diligently with the representatives and engineers on this project and we are pleased to acknowledge that the plat dated October 6, 2003 (the "Plat") provides adequate space, setbacks and access for Patina's existing and future oil and gas operations on the Property. Patina herewith rescinds its objection to the proposed development before the Weld County Board of County Commissioners assuming approval of the Plat for this Property. If you have any questions, please feel free to contact Dave Padgett at (303) 389-3699. Sincerely, PATINA OIL & G - S CORPORATION r /N v ' David W. Siple Vice President c: Jarrald & Jaye Jamison Kenneth F. Lind, Esq. Fax (970) 356-11 11 P. David Padgett BOARD OF COUNTY COMMISSIONERS' SIGN POSTING CERTIFICATE THE LAST DAY TO POST THE SIGN IS: OC.Tok)o- Z ZC1:D3THE SIGN SHALL BE POSTED ADJACENT TO AND VISIBLE FROM A PUBLICLY MAINTAINED ROAD RIGHT-OF..WAY. IN THE • EVENT THE PROPERTY BEING CONSIDERED FOR A SPECIAL REVIEW IS NOT ADJACENT TO A PUBLICLY MAINTAINED ROAD RIGHT-OF-WAY,THE DEPARTMENT OF PLANNING SERVICES SHALL POST ONE SIGN IN THE MOST PROMINENT PLACE ON THE PROPERTY AND POST A SECOND SIGN AT THE POINT AT WHICH THE DRIVEWAY (ACCESS DRIVE) INTERSECTS A PUBLICLY MAINTAINED ROAD RIGHT OF-WA:Y. - -1 HEREBY CERTIFY UNDER THE PENALTIES OF PERJURY THAT THE SIGN WAS POSTED ON THE PROPERTY AT LEAST 10 DAYS BEFORE THE BOARD OF COUNTY COMMISSIONER'S HEARING F.� �r FOR AMJSR- 214 Z . THE SIGN WAS POSTED BY: . • C..,L.T\% &A-N._ NAME OF PERSON POSTING SIGN jj_ 3]GNATURE FOR PERSON POSTING SIGN STATE CF COLORADO) )ss. COUNTY OF WELD ) SUBSCRIBED AND SWORN TO ME THIS-I1JDAY CF a-1( :1 Cc i 3 LL)it()(zQ NOTARY PUBLIC MY OCMMvII5�ICN EXPIRES: (_1 1,) (t j...... This FORM SHALL BE PLACED LACi" • IN THE ARFROPN;ATE"<Lc FOR rHE ABOVE CASE MOUT Hello