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HomeMy WebLinkAbout20012472.tiff WI" FAX TRANSMISSION COLORADO WELD COUNTY DEPARTMENT OF PLANNING SERVICES FAX: 970-304-6498 PHONE: 970-353-6100, EXT. 3540 To: Julie Chester Date: September 13, 2001 Fax: 352 6284 Pages: 7, including cover Phone: 352 6057 x 104 From: Kim Ogle ti_ Planner III V ' kogle@co.weld.co.us Subject: Agreement- Patina and Varra Companies COMMENTS: For your information. Lee was copied on document. You may want to contact Joby at 800 288 2657 or 970 493 7888 to discuss present situation. He is waiting for word from someone on this case. Lee's legal advice is to place topic of adequacy in the hands of the Board to determine whether condition has been met. If you need any further information, please feel free to contact me at the above telephone number or e- mail address. CONFIDENTIAL This facsimile is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged. confidential,and exempt from disclosure under applicable law. If the reader of this facsimile is not the intended recipient nor the employee or agent responsible for delivering the facsimile to the intended recipient,you are hereby notified that any dissemination,distribution,or copying of this communication is strictly prohibited. If you have received this communication in error,please notify us immediately by telephone and return the original message to us at the above address via the U.S.Postal Service. Thank you. aocy--9'/7a EXHIBIT #41/8 Varra Companies, Inc. Office of Special Projects 1431 East 16th Street 4 Greeley, Colorado 80631 Telephone(970)353-8310 + FAX 970)353-4047 TRANSMITTAL Weld County Planning Dept. Thursday 13 September 2001 To: Kim Ogel f�„J Weld County Planning RECEIVED Telephone: ( Fax Line: From: Bradford Janes Professional Forest Subject: Surface Damage Agreement between Varna Companies,Inc.and SOCO,aka Patina Oil 3rd Am USR 248—Coal Ash Burial Project. Dear Kim: The copies of the above agreement provided to your office were inadvertently covered by the legal size fold. Included with this transmittal are the full agreements,at the request of Joby Adams,C.G.R.S. If you need clarification or additional information,please feel free to contact us. cc. Lee Morrison Weld County Attorney sect Snyder Oil Corporation 3939 SOCO Parkway Evans,Colorado 80620 January 26, 1994 (303)330-2200 (303)442-6025 Varra Companies, Inc. 2130 South 96th Street Broomfield, CO 80020 Re: Varra 31-3L & Varra 31-4L N/2NW/4-31-3N-67W Weld County, Colorado Dear Jack: Pursuant to our meeting of January 5, 1994, after receipt of the executed Surface Damage Agreement and prior to commencement of operations, Snyder will make the following payments by check: Surface Damages (per well) $ 1000.00 Total Consideration $ 2000.00 *Gas Pipeline Right-Of-Way to be paid at $ .85 per foot once route has been determined and measured. Please indicate your receipt and acceptance of this letter by signing and dating in the space provided below. Please return the original to me and retain a copy for your files. Thank you for your cooperation in this matter. Cordially, ‘te Curt Moore Consulting Landman 5i ACCEPTED AND RECEIVED THIS 3/ day of "'014111-- , 1994 _ V Title: /18C • SuCL7 Snyder Oil Corporation 3939 SOCO Parkway Evans,Colorado 80620 January 26, 1994 (303)330-2200 (303)4426025 Varra Companies, Inc. 2130 South 96th Street Broomfield, CO 80020 Re: Nelson 31-1L, Nelson 31-2L, Nelson 31-7L, Nelson 31-9L, Siegrist 31-10L, Siegrist 31-15L & Nelson 31-16L E/2-31-3N-67W Weld County, Colorado Dear Jack: Pursuant to the terms of that certain Surface Damage Agreement dated N , 1994, by and between Varra Companies, Inc. and Snyder Oil Corporation, and prithl commencement of operations, Snyder will make the following payments, the amount of which shall equal the cost to Varra of installing a replacement gas pipeline, by check: Mining Damages (per well) $ 1367.64 Total Consideration $ 9573.48 Please indicate your receipt and acceptance of this letter by signing and dating in the space provided below. Please return the original to me and retain a copy for your files. Thank you for your cooperation in this matter. Cordially, C Curt Moore Consulting Landman ACCEPTED AND RECEIVED THIS 3/ day of 3M"hC , 1994 (1/&14 71:14—/ Title: • SURFACE DAMAGE AGREEMENT KNOW ALL MEN BY THESE PRESENTS: That the undersigned Varra Companies, Inc., 2130 South 96th Street, Broomfield, Colorado 80020, being the owner, recognizing that the following described lands are subject to one or more oil and gas leases of record, and that the lessee and its assigns, and the agent of such to whom this instrument is delivered, have certain rights in the use of the surface of the lands covered by such lease or leases, and being now informed of the proposed use, including ingress and egress, placement of drilling location and other uses incident to the drilling for and production of oil and gas on the following described lands, as shown on Exhibit "A" attached, do hereby agree, in consideration of the premises and the further promise of the agent of lessee or its assigns, to pay the undersigned the sum of Ten and more Dollars ($10.00) to acknowledge, and he does hereby acknowledge, subject only to the timely receipt of the above sum f money, such sum as full settlement and satisfaction of all detriment, injuries and damages growing out of, incident to, or in connection with the drilling and production from well(s) Varra 31-3L (NENW-31- 3N-67W) & Varra 31-4L (NWNW-31-3N-67W) upon the following described lands in Weld County, Colorado, to wit: Township 3 North, Range 67 West, 6th P.M. Section 31: N/2NW/4 Spacing Unit Description: N/2NW/4 caused by the moving in and moving out of agent's derrick, drilling tools, vehicles, and all other machinery and equipment necessary or incident to drilling, testing, completion and operation of such well(s) for oil and gas, and all roads, pipelines, tank batteries, and lands involved in permanent installations. And for the same considerations, the undersigned does hereby release, acquit, and discharge the said SNYDER OIL CORPORATION, itself and the principals for which it shall act, of and from any and all of, incident to or in connection with drilling of said well(s) and operations incident thereto as aforesaid, and does particularly release, acquit, and discharge said SNYDER OIL CORPORATION, and its principals, of and from, but not by way of limitation to, all such claims for detriment, injuries, and damages to said land, the improvements thereon and appurtenances thereto, or to any grass, vegetation, shrubs, trees, crops, livestock, or other personal property growing or located thereon, or any damage or loss which the undersigned has or might hereafter sustain due to diminished quantity or quality of future crops caused by the above-mentioned operations. The undersigned agree to waive the minimum thirty (30)day written notice requirement described in the Notice Letter provided you by Snyder when it initially gave notice of its intent to drill the above described well(s). It is understood that the undersigned and Snyder Oil have already agreed to or will mutually agree to the specific timing of the location, building, drilling and completion of said well(s). This Agreement is subject to Exhibit "A", a plat showing the approximate locations of SOCO's wellsites, access roads, production facilities, etc., attached hereto and by this reference made a part hereof. This Agreement is subject to Exhibit "B", a list of "Additional Provisions" between the parties herein, attached heretoand by this reference made a part hereof. 6yday �ibvt/ Dated this 3� of 1994 Signed: 4 1:44..) Title: &J0 • EXHIBIT "A" Attached hereto and made a part hereof that certain Surface Damage Agreement dated /"' 31 1994, from Varra Companies, Inc., 2130 South 96th Street, Broomfield, Colorado 80020. Township 3 North, Range 67 West, 6th P.M. Section 31: N/2NW/4 VARRA 31-4L VARM 31-3L NELSAN 31-2L ' ttELSonI 3l-IL • • VARRA 31-5L • \ / a_.„-- SW I4 NE 14 r S. VrAin I{ivercfr vVARRA 31-,2L VARRA 31-IIL SIEGRIST 31-1bL NELSGn1 31AL V7 • I a U VVAlkAtk 31-14L SIEGRIST 31-1SL MaSofJ 31-IbL :Ti SWi4SWk Dr:. dJ County Road Zb EXHIBIT "B" Attached hereto and made a part hereof that certain Surface Damage Agreement dated / — ,3/ , 1994, from Varra Companies, Inc., 2130 South 96th Street, Broomfield, Colorado 80020. Additional Provisions: 1. Varra Companies, Inc. ("OWNER") agrees to provide temporary access to Snyder Oil Corporation ("SOCO") for drilling and completion operations to the directional pad [(Varra 31-5L (SWNW-31-3N-67W), Varra 31-11L (NESW-31-3N-67W), Varra 31-12L (NWSW-31-3N-67W) and Varra 31-14L (SESW-31-3N-67W)] located in the SW/4SW/4 as shown on Exhibit "A". 2. OWNER agrees to provide permanent access to SOCO for drilling, completion and production operations to the directional pad [(Nelson 31-1L (NENE-31-3N-67W), Nelson 31-2L (NWNE-31-3N- 67W) and Nelson 31-7L (SWNE-31-3N-67W)] located in the SW/4NE/4 as shown on Exhibit "A". 3. Permanent access to the Varra 31-3L (NENW-31-3N-67W) and Varra 31-4L (NWNW-31-3N- 67W) will be as shown on Exhibit "A". 4. In a measure of good faith between the two parties herein, SOCO agrees to compensate OWNER for the installation of a gas pipeline in the SW 1/4 of this Section 31 which will replace a different gas pipeline and allow OWNER the ability to mine the SW/4SE/4 and the S/2NW/4SW/4. The estimated cost of this pipeline installation amounts to $ 9573.48, and said compensation shall reimburse OWNER for the area around the to drillsites and tank baterry sites in the E/2 of this Section 31 which will be lost for gravel mining purposes. This compensation shall be provided for in a "Letter Agreement" dated January 26, 1994 between the two parties herein. OWNER further agrees to supply water at no cost to SOCO for drilling and completion operations associated with the following Thirteen (13) Wells: Nelson 31-1L (NENE-31-3N-67W), Nelson 31-2L (NWNE-31-3N-67W), Varra 31-3L (NENW-31-3N-67W), Varra 31-4L(NWNW-31-3N-67W),Varra 31-5L(SWNW-31-3N-67W), Nelson 31-7L (SWNE-31-3N- 67W),Nelson 31-9L(NESE-31-3N-67W),Siegrist 31-10L(NWSE-31-3N-67W),Varra 31-11L(NESW- 31-3N-67W), Varra 31-12L(NWSW-3I-3N-67W),Varra 31-14L(SESW-31-3N-67W), Siegrist 31-15L (SWSE-31-3N-67W) and Nelson 31-16L (SESE-31-3N-67W), all bottom hole locations and respective surface drilling locations shown on Exhibit "A". OWNER further agrees to allow SOCO the right to dispose of drilling muds and shale cuttings on OWNER's lands at sites mutually agreed to between the two parties for the same thirteen wellsites described herein. 5. SOCO shall compensate OWNER for landscaping and aesthetic maintenance of the four (4) directional drilling locations shown on Exhibit "A". Said compensation shall not exceed Two Thousand Dollars ($2000)per drilling location. Said landscaping and maintenance shall include building of burms, installation and maintenance of trees and shrubbery, etc., around the tank batteries and well heads. It is mutually agreed between the two parties that said landscaping and construction shall not inhibit SOCO's ability to service, maintain and produce the wells and tank batteries. 6. OWNER agrees to provide fill dirt to SOCO for the SW/4SW/4 drilling location at a cost of Three Thousand Three Hundred Dollars ($3300.00). The amount of fill dirt shall equal not less than One Hundred (100) "tandem" truck loads. OWNER shall dump said dirt on the drillsite location at a time mutually agreed to between the two parties. 7. SOCO further agrees that any fill dirt, road base or pit run used on this Section 31 shall be purchased from OWNER provided that OWNER's prices are competitive. I 4ja . 4i . T S .'per 4/1o1'kq _ r, , In ' * i Rk Y ._ A m 3a V of � r' ---- A d nt : rgircr 4/10sm LEE Morrison - Docket#2001-63_ Page 1 From: "David Siple" <DSIPLE@patinaoil.com> To: <Iorrison@co.weld.co.us> Date: 9/19/01 9:15AM Subject: Docket#2001-63 Solid Waste Disposal Facility T3N, R67W, Section 31: NW, Weld County, Colorado Patina Oil & Gas Corporation has no objection to Docket#2001-63. Erma l$ir € CAROL Harding -Varra Companies Inc. Docket No 2001-63 ...... ................ Pagel From: Steven P. Jeffers <sjeffers@blglaw.com> To: <charding@co.weld.co.us> Date: 9/18/01 4:00PM Subject: Varra Companies, Inc. Docket No. 2001-63 Carol Harding "TI "o Clerk to the Board of Commissioners .m , Re: Docket No. 2001-63, Varra Companies, Inc Dear Ms. Harding: i ) y Thank you for providing us with a copy of the notice regarding Varra's application. Please provide these comments to the Commissioners at the upcoming hearing. I am an attorney at Bernard, Lyons, Gaddis and Kahn, P.C. in Longmont. Our law firm represents the St. Vrain and Left Hand Water Conservancy District ("St. Vrain District") in water rights and related matters. The St. Vrain District is a Colorado Water Conservancy District created to conserve, develop and protect water rights and water resources in the St. Vrain and Left Hand Creek basins from their head waters to the confluence of St. Vrain Creek with the South Platte River in Weld County. St. Vrain has been monitoring the application of Varra Companies to dispose of coal ash by burying it in a portion of its mined gravel pits in western Weld County near St. Vrain Creek, and has previously provided comments to the State Health Department and State Division of Minerals and Geology on this project. In summary, the St. Vrain District is concerned about potential contamination of the surface stream and alluvial aquifer and injury to water rights associated with local ditches and wells. The St. Vrain District had been receiving periodic updates from Cheryl Signs on behalf of Varra regarding its proposed plan, but has not received any updates for over a year. Varra did not provide us with a copy of the recent application, and we were not able to obtain or review a copy since we received notice of this hearing. I hope these comments will still be relevant. It is my understanding that the current application is only for a test pit to study the risks of potential contamination from burial of the ash in the saturated zone of the alluvial aquifer, and that Varra will not be allowed to bury the ash in the existing gravel pits based on this application. Based on discussions with local land owners, the St. Vrain District has two concerns with that proposal. First, if the test pit is located in the saturated portion of the aquifer, there must be adequate safety precautions to ensure that any contamination can be prevented from reaching local wells and the stream. The St. Vrain District does not think Varra can provide such protection. Subsequent removal of the ash after contamination has occurred should not be an acceptable method of protection. Second, if the test pit is located above the saturated zone of the alluvial aquifer, the test results may not have much relevance to evaluating a larger disposal plan in the aquifer. Such a location may not have the same amount or timing of saturation or water flow as would occur in the saturated zone of the "0. aquifer. As such, the test results should not be accepted as demonstrating adequate protection for the aquifer without further analysis and testing. 1 EXHIBIT CAROL Harding 7 Varra,Companies Inc Docket No 2001-63 Page 2 To the extent that Varra may be requesting the right to begin actual disposal of ash in the aquifer, as opposed to a small test project, St. Vrain strongly requests that the Commissioners deny that request. Thank you for considering these comments. Yours truly, Steven P. Jeffers CC: "Les Williams @" <cynthia@svvi.net> Hello