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Home My WebLink About20012656 S Weld County Planning Dept. constructors RECEIVED August 9, 2001 Ms Julie Chester Weld County Planning Staff 1555 North 17th Ave. Greely, CO 80631 Re: USR 1346 Western Mobile/Virginia Shaw Gravel Mining Permit Application Dear Ms Chester: I attended the Planning Commission Meeting on Tuesday August 7 and spoke concerning the Western Mobile/Virginia Shaw Gravel Mining Permit Application for gravel to be mined north of WCR 16-1/2 and east of WCR 3-1/4. I live at 1128 WCR 16-1/2, Longmont, CO 80504. I am in favor of this permit and operation providing that two situations are addressed. I also feel that all the surrounding neighbors that live on WCR 16-1/2 and 3-1/4 agree with this position. We were all disappointed in the tone of the meeting and the lack of action taken by the planning commission on both of these issues. 1.] The first issue concerns the condition of WCR 3-1/4 which is terrible and which has been put in this condition directly by the operations of Western Mobile in the mining and sale of gravel from the Nelson Pit which was permitted by Weld County in December of 1982. The original permit holder was Flatiron Paving Co and the Development Standards for this permit [USR-495:82:10] require, per item 9 of the standards, the"the owner and/or operator shall adhere to the maintenance of WCR 3.... " This item also refers to a letter dated November 19, 1981 that basically states that Weld County and Flatirons Paving will jointly pave WCR 3-1/4...Weld County was to provide the aggregate base course,blading and rolling of WCR 3-1/4 prior to pavement and Flatiron Paving would then pave WCR 3-1/4 with 3" of Hot Bituminous Pavement. Although Item 9 of the development standards refers to the November 19, 1981 letter,this letter does not specifically address the issue of Flatiron Paving's maintenance of WCR 3-1/4 after the paving was completed. I started construction of my home in 1996 during a period when the Nelson pit was relatively slow and there was a small amount of traffic during the next few years and during this time WCR 3-1/4 was in good condition with intact paving all the way from Hwy 52 to WCR 16-1/2. In approximately 1999 the gravel business picked up and for the past few years WCR 3-1/4 has been subjected to very heavy truck traffic on almost a daily basis and during this time there has been major deterioration of the paved road. The paving for the last 1/4 mile [just south of WCR 16-1/2] has totally broken I EXHIBIT 2001-2656 -- ---- ase tswe 215 cheesman, suite k• post office box 330 •erie, colorado 80516•tel: 303.444.4405 •fax: 303.82 .nuor Weld County Planning letter of 8/9/01 Page 2 up , the paving is gone and it is now gravel. The remainder of the road to Hwy 52 is filled with pot holes and the remainder of the paving is about to break up in the same manner that the first '/< mile has. The only maintenance that has been done in the past months is that Western Mobile has sent in small crews on two Saturdays who filled a small amount of potholes and they also water the gravel portion in the morning before they start their trucking for the day. The issue that the neighbors have is this...there is also a letter from the Flatiron Companies dated October 23, 1974 that confirmed that the Weld County Commissioners tabled the original permit until an arrangement could be worked out between Weld County and Flatiron Paving concerning the improvement and maintenance of WCR 3-1/4. It is my opinion that the improvement of WCR 3-1/4 was done per the November 19, 1981 letter but that there was no written specific agreement that defined how WCR 3-1/4 was to be maintained after the original paving was completed. We are asking that this agreement be included in the development standards to correct the oversight that occurred when the Nelson Pit permit was issued. From Item 9 of the development standards and the wording of Flatiron Companies letter of Oct 23, 1974 it is our opinion that the Weld County Commissioners wanted WCR 3-1/4 initially paved and after that Flatiron Paving was to continue to maintain this road to mitigate damage done by their haul trucks. We also feel that Western Mobile is responsible to live up to these agreements after they purchased the mining rights from the Flatiron Companies We realize that the gravel in the new permit will not be hauled over WCR 3- - 1/4 but we think that the language of the standards for the new permit should include language that corrects the oversight in the wording of the original Nelson Pit permit with respect to maintenance on 3-1/4 [ which is now not being done] and putting it into it's original condition after the hauling is complete. We estimate that over 3 million tons of gravel have been mined under the original Nelson Pit permit and the new permit will include 2.5 million tons of mined gravel. This represents an approximate gross income from these permits of over $30 million and we feel that the minor cost of maintaining and restoring WCR 3-1/4 will be less than 0.25% of this income. At the end of the planning commission meeting of August 7, 2001 we heard that Western Mobile, as a"good neighbor", might consider some restoration of WCR 3-1/4 but, again, there was no definitive program defined and we are left to a verbal commitment that may or may not be honored. We respectfully request that the planning staff and board reconsider the inclusion of specific wording in the development standards regarding the maintenance of WCR 3-1/4 and the asphalt overlayment of this road immediately after their gravel hauling is complete. I have included copies of the pertinent portions of the above referenced correspondence for your further information and review. We feel that this is only fair and that the only time to correct the original oversight is before the new permit is issued. 2.] The second issue to be addressed is the level of the lake on the SW corner of WCR 16-1/2 and 3-1/4 during the mining operations during the first 2 phases of the proposed mining permit. The lake in question is an unlined lake that is fed from the surrounding water table with the most water being fed through the gravel lens from Boulder Creek which lies approx 100 yards west of the west side of the lake . When the dry mining Weld County Planning letter of 8/9/01 Page 3 operations begin, first to the east and second directly north of 16-1/2,Western Mobile will be pumping from a well to maintain a dry bed in the mining operations. We feel that because they will be drawing water from the water table through our lake that there is a possibility that the lake level may be adversely affected. We would, simply, like to request that wording be included in the development standards that address this issue. Namely,that the water being released from their well pump be diverted into our lake during the pumping operation to mitigate, as best as is possible, the possibility of lower lake levels due to their dewatering operations. We realize that our lake level is mostly a function of the natural water table and we have seen, during the past 5 years, levels that directly relate to the amount of moisture that the front range in our area. We only want to see the best reasonable measures taken during the pit dewatering process, namely, that the excess water from the dewatering be diverted into our lake until that pumping is ceased. We are requesting that this wording be included in the development standards for the above referenced permit because at the end of the planning meeting of August 7, 2001 there was no reference to this issue being added to the standards, again,the comments were only verbal which could or could not be honored We thank you for your consideration and please feel free to call me if you have any questions or if you need further information on these issues. I would also like to request that you mail copies of the permit submittal data and the Weld County Development standards as approved that the meeting of August 7, 2001 to my office at the address listed above. We would also appreciate you informing us of the date and time that is currently scheduled for the Weld County Commissioners meeting that will hear this permit application. Thanks again and we will be lookin orward to hearing from you on these requests. Sincet , Jdh' C. Widerquist Ralph Nelson Terry Henze 1 8 Weld County Road 16-1/2 pER 3-1/4 7253 WCR 3-1/4 Longmont, CO 80504 p. Steve& Ellene Kloepfer 1435 WCR 16-1/2 Olber WCR 3-1...<10e2.9.14L 7251 WCR 3-1/4 ICe � 1QI 1� FLATIRON COMPANIES POST OFFICE BOX 229, BOULDER, COLORADO 80302 • PHONE : (303) 444.2151 October 23 , 1974 Weld County Commissioners County Court House 9th and 9t . Greeley, CO 80631 Re: Roads Servicing Nelson Properties Attn: Mr. Richard Straub, County Engineer Agricultural Unit Development Gentlemen: At the County Planning Commission hearing on the subject development last June there were questions as to the adequacy of bridges in the area of the permit to carry gravel trucks• Referring to the enclosed sketch map, BridgesOl andOwere a concern of the County engineer. He and I visited the site in August and inspected the bridges with a structural engineer I retained. In a letter dated August 13 , 1974 I agreed to investigate the capacity of the bridges and participate with the County in repairing or upgrading one or the other bridge if feasible. We found subsequently that BridgeQ across Boulder Creek could not economically be repaired. At the County Commissioners hearing in September we proposed that Bridge®. would not be used, but the: all our gravel traffic would go out to the West to County Line Road over Bridge O2 (Plumb & Dailey Ditch) which would be repaired or replaced on a participation basis with the County . Also at that hearing some residents of houses along Road #16-1/2 between Bridge®and County Line Road spoke to the potentially bad dust conditions along that road when gravel operations were underway. The Commissioners' decision was to table the request until some arrangement could be worked out concerning a participation by Flatiron with the County in improvement.INdastahntorteret of the road over which our trucks would be traveling. Lei PAVING COIfrf } ROST OFFICE BOX 225, BOULDER, COLORADO 80306 • PHONE : !303! 443.cc00 November 19 , 1981 Mr. Tom Bonn Dept . of Planning Services 915 10th Street Greeley , CO 80631 RE: Flatiron Sup-260 Nelson Pit Dear Mr . Bonn : The approval of Flatiron Sand and Gravel Company ' s request for placement and operation of a concrete batch plant and an asphalt mixing plant at the Nelson Pit site required the Board of Commis- sioners to approve any conditions to be placed on the operation . Those conditions were approved on June 10 , 1981 . One of those conditions related to the maintenance of the primary access to the site , County Road 3 . Further agreement was required to establish the sharing of responsibility for maintenance between Weld County and Flatiron. An agreement was reached in a work session with the Commissioners on the 15th of June , 1981 . Weld County will provide the aggregate base course , ( 10 , 850 ton is estimated amount required) , blading and rolling of County Road 3 prior to pavement . Flatiron will provide the equipment , labor and materials necessary to pave County Road 3 with 3" of Hot Bituminous Pavement . The County will use aggregate base course from the existing stock- PiJes in the Nelson Pit to reduce the haul required. Flatiron will then be given credit for the same amount of base course which they may take as required from County Pits . The roadway preparation is to be coordinated by the County Engineer and Flatiron . Surveying will be provided by Flatiron . Flatiron will pave from the plant set up in the Nelson. Pit . Please feel free to call if additional infcrma; irgr, is required. FLATIRON PAVING COMPANY OF BOULDER • Janes E. Short President JHS : .. , .. Y Date: November 3, 1982 CASE NUMBER: USR-495:82 :10 NAME: Flatiron Paving rn REQUEST:A Use By Special.Review Permit for an asphalt & concrete batch plant LEGAL DESCRIPTION:Part of Section 20 & 29, T2N, R68W of the 6th P.M. LOCATION: 3.5 Miles East of Erie on Weld County Road 161 THE DEPARTMENT OF PLANNING SERVICE'S STAFF RECOMMENDS THAT THIS REQUEST BE APPROVED FOR THE FOLLOWING REASONS: 1. The submitted materials are in compliance with application requirements of Section 24. 7 of the Weld County Zoning Ordinance. 2. It is the opinion of the Department of Planning Services staff that the applicant has shown compliance with Section 24.3. 1. 1 et seq. of the Weld County Zoning Ordinance as follows: - The proposal is consistent with the Comprehensive Plan policies in that the use 'does not infringe on continued agricultural use in the vicinity or County. The proposal does not appear to have any adverse impacts on the agricultural interests of the County or the environment. - The proposal is consistent with the intent of the Agricultural Zone District; and is provided for as a Use by Special Review. - It is the opinion of the Department of Planning Services staff that the attached Development Standards will minimize impacts on surrounding uses and the area to the greatest extent possible and provide adequate protection of the health, safety, and welfare of the inhabitants of the area and the County. These determinations are based, in part, upon a review of the information sub- mitted by the applicant, other relevant information regarding the request, and the responses of the referral entities which have reviewed this request. The Department of Planning Services staff's recommendation is conditional and based upon the following: -\1. Prior to scheduling a public hearing before the Board of County Commissioners, the applicant shall submit a copy of a water agreement to the Division of Water Resources for their review and recommendation. 2. The attached Standards for Use by Special Review be adopted. 3. The plat for the use permit be placed of record by the Department of Planning Services staff prior to any building permits being issued on the site. Cets..op eri SS/044n 54/ tterAerett aceil OS 19 B 2 DEVELOPMENT STANDARDS USR-495:82: 10 FLATIRON PAVING CO. 1. The permitted uses on the hereon described Use By Special Review Permit Area shall be a concrete batch plant, asphalt batch plant, associated parking facility, office and maintenance facility as described in the application materials. 2. All phases of the batch plant operations shall comply with all County and State Health Standards and regulations pertaining to air quality, water quality, noise emission and sanitary disposal systems. 3. All structures on the property shall be in conformance with Weld County Flood Hazard Development Regulations. 4. The Use By Special Review Permit area shall be maintained in such a manner so as to prevent soil erosion, fugitive dust and growth of noxious weeds. The site shall be maintained in such a manner as to present a neat and well-kept appearance. 5. The liquid asphalt storage and heating tank shall be properly bermed to hold the capacity of said tank. 6. Portable fire extinguishers shall be installed in accordance with the National Fire Protection Association. The type of fire extinguishers shall be rated 20 ABC. 7. The owner/occupant shall provide the Longmont Rural Fire Protection District with a complete set of written plans of the proposed structure, including measurements, occupancy and contents. 8. The haul route shall be Weld County Road 3 to Highway 52. 9. The owner and/or operator shall adhere to maintenance of Weld County Road 3 as discussed and agreed to in a work session with the Board of County Commissioners on June 15, 1981. The agreement is referenced in a letter from the applicant dated November 19, 1981, and is on file as part of the application materials. 10. The Use by Special Review shall be limited to the plans shown hereon and governed by the Standards stated above and all applicable Weld County Regulations. Any material deviations from the plans and/or standards, as shown or stated above, shall require the approval of an amendment of the permit by the Weld County Planning Commission before such changes from the plans and/or standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 11. The property owner and/or operator of this operation shall be responsible for complying with all of the above stated standards. Noncompliance with any of the above stated standards may be reason for revocation of the permit. RA:dg LAFARGE Weld County planning Dept. August 15, 2001 RECEIVED Mr. Drew Scheltinga Engineering Manager Weld County Public Works Department Post Office Box 758 Greeley, Colorado 80632-0758 Re: Repair and Maintenance of Weld County Road (WCR) 3 1/4 Dear Mr. Scheltinga: Lafarge operates a sand and gravel pit in southwest Weld County known as the "Nelson" Pit (USR—495:82:10 and SUP 260). At the time of the Special Use Approval, the Weld County Commissioners designated WCR 3 1/4 between WCR 16 1/2 and Colorado Highway 52 as the access road to the Nelson Pit. Also, as a condition of approval, the original pern ittee (Flatiron Paving Company of Boulder) and Weld County agreed to share in the improvement, repair, and maintenance of WCR 3 1/4. Unfortunately, the historic record is pretty thin on the details of how this agreement was to be implemented. Recently, Lafarge representatives met with neighbors living along WCR 3 1/4 to discuss the Company's future mining plans in the area. Since the Nelson Pit will soon be depleted, the Company estimates by next summer(2002), hauling on WCR 3 1/4 will end. While this is welcome news to the neighbors, they are concerned about the condition of WCR 3 1/4 after hauling ends. In response to their concerns, Lafarge has expressed its desire to see to it that the road is properly repaired. To that end the Company has committed to share the cost of repairs consistent with the spirit of the 1981 agreement between Flatiron and Weld County. The purpose of this letter is to initiate discussions with Weld County that will result in the timely repair of WCR 3 1/4 after the close of Lafarge's Nelson Pit, and an equitable distribution of the cost of repair between Weld County and Lafarge. Therefore, the Company would like to propose the following steps: WESTERN MOBILE DENVER,a subsidiary of Lafarge Corporation EXHIBIT DENVER METRO AGGREGATE DIVISION 1400 W.64th Ave.,P.O.BOX 215001, Denver,Colorado 80221-0599 Office:(303)657-4400 Fax:(303)657-4413 J1 Mr. Drew Scheltinga August 15, 2001 Page Two First, Weld County and Lafarge will inspect WCR 3 1/4 in order to determine the condition of the road and appropriate level of repairs once hauling ends. Second, based on the above, Weld County and Lafarge will determine an equitable cost-sharing approach for the repair of WCR 3 1/4. Third, to provide the residents who live on WCR 3 1/4 or use that road to commute to and from their homes, Weld County and Lafarge will commit to repair the road by a certain date. Finally, the above will be memorialized in a letter agreement signed by both parties with copies provided to the neighbors. After you have reviewed this letter, please call me at (303) 444-6602 so we can schedule a time to inspect WCR 3 1/4. Sincerely, Michael J. (Mike) Hart for Duane Bollig ,Lafarge Land Manager cc: Donald Carrol Julie Chester John Hepp Ralph Nelson Jack Olberding Dave Poss John Widerquist Weld County Planning Dept. August 7,2001 To: Weld County Department of Planning Services RECEIVED From: Greg Balmes Weld County Planning Dept. 7227 WCR 3 1/4 7 2CC1 Re: Case Number USR-1346 RECEIVED To whom it may concern: Due to problems encountered today at my job site, I am not able to attend the hearing for this case. Therefore, here are my comments and objects: 1) I feel LaFarge should pay for the lion's share of upkeep on Road 3 1/4. There are approximately 100 trucks a day that use this road. These trucks weigh all of 80,000 lbs. each and they do the majority of the damage. As homeowners we have a responsibility,because we use the road. But we also pay taxes. These trucks are doing the damage. LeFarge is profiting from this operation. LaFarge should pay to have the road redone and maintained. Their share should be no less than 98%of that cost. 2) The operations at the new pit should commence no earlier than 6:00 a.m. and operate no later that 5:00 p.m., Monday-Friday. The material from the pit should be convey- ed north over 16 1/2, not trucked. It is dangerous to have trucks capable of hauling 100 tons operating on public roads. These trucks are not equipped for over the mad use. In the event that the material is to be trucked out of this pit. A person should be at the road(16 1/2)at all times of operation so as to warn traffic using 16 1/2 of approaching mine trucks. 3) The piling of topsoil for reclaiming the property and the material mined from the pit should be stockpiled to the east of road 3 1/4 at least 200 yards. Thank you for your time in this matter. I can be reached at 303-931-6493. Respectfully, g mes [2. EXHIBIT Davis Graham & Stubbs LLP August 6, 2001 Weld County Planning Dept. Via Facsimile and U.S. Mail Ms. Julie Chester Weld County RECEIVED Department of Planning Services 1555 North 17th Avenue Greeley, CO 80631 Re: Western Mobile,Inc./Virginia Shaw USR 1346 Township 2 North, Range 68 West Sections 20 and 29: (Portions) Weld County, Colorado Dear Ms. Chester: This law firm represents HS Resources, Inc. ("HSR")with respect to its oil and gas leasehold rights in the above-captioned lands (the "Property"). In our case, oil and gas leasehold rights affecting the Property are more particularly described in HSR's Notices of Oil and Gas Interests and Surface Use covering the S/2 of Section 20 and all of Section 29, recorded at Document Nos. 2820916, 2813720 and 2813721, respectively,which Notices are attached for your review. By reference, HSR incorporates all of the concerns addressing protection of the mineral estate set forth in Molly Sommerville's letter dated July 23, 2001 addressed to you on behalf of RME Land Court and RME Petroleum Company. Any future notices of hearings concerning the Property should also be sent to HSR to the attention of Lisa M. Schiel at 1999 Broadway, Suite 3600, Denver, Colorado 80202. HSR objects to the approval by the County of the Application unless and until an agreement on surface use is reached between IISR, other mineral and leasehold owners and the Applicant. Sincerely, Dustin M. Ammons for DAVIS GRAHAM & STUBBS LLP cc: C. Greneaux (w/o end.) M. Hart(w/o end.) 4 EXHIBIT #386925v1 4. August 6,2001 0925am Dustin Ammons . 303892-7488 . dustinammons@dgslaw.com US . #134*. 1530(3eventeenrh'Arent • Aiiie 50:) . Denver, lnlordu 80302 • 3038929400 fax 303 893 1379 w w w.dg s l a w.com SENT BY:DGS ; 8- 6- 1 ; 3:23AM ; DEKALB- 370 304 6438:; 3.: 11 ��, 1111111111111111111IIII1111I"'III IIIII III IIIII IIIII III 2820916 01123/2001 04:35P JA Said Tsukalsoto 1 el 3 R 15.00 D 0.00 Weld County CO NOTICE OF OIL AND GAS INTERESTS AND SURFACE USE This Notice of Oil and Gas Interests has been prepared and is being tiled of record by OS Resources, Inc., (hereinafter, "IISR") whose address is 1999 Broadway, Suite 3600, Denver, Colorado, for the purpose of providing additional public notice of its rights to make use of the surface of the lands described below for oil and gas exploration,development and related operations. For such purpose, MR hereby slates as follows: I ISR is the owner of certain oil and gas leasehold rights affecting the following described lands in Weld County, Colorado (the "Lands"): Township 2 North, Range 66 West, 6th P.M. Section 20: S/2 IISR's oil and gas leasehold rights in the I.ands derive from those valid and subsisting oil and gas leases which are described on Exhibit"A",attached hereto and incorporated herein, and have been duly recorded in the office of the Clerk and Recorder of Weld County(the "Leases"), Under the laws of the State of Colorado and the provisions of the Leases, IISR has certain rights to occupy and make use of the surface of the Lands,which rights include but are not limited to the right to PROSECUTE OIL AND GAS DRILLING AND COMPLETION OPERATIONS; PRODUCTION, TRANSPORTATION AM) MARKETING OF OIL, GAS OR OTHER. IIYDROCARBON PRODUCTS AS WELL AS RIGHTS OF ACCESS AND USE OF THE SURFACE OF'I'HE LANDS FOR CONSTRUCTION,INSTALLATION,MAINTENANCE, REPAIR, REPLACEMENT ANI) MONITORING OE WELLS, WELL LOCATIONS, EQUIPMENT, MUD AND RESERVE PITS, SEPARATORS, TANK BATTERIES, PIPELINES,GATHERING LINES,FL.OWLINES,PIPELINE INTERCONNECTIONS AND ANY AND ALL OTIIIR REASONABLE OR CUSTOMARY USES OF THE LANDS RELATED TO SUCH OPERATIONS. Exhibit "E" attached hereto is a plat of the Lands showing the allowable locations under Colorado Oil and Gas Conservation Commission Rule 31 BA and indicates potential drillsite locations where oil and gas drilling operations may occur. This Notice is intended to remain in effect for so long as the Leases, or any extensions or renewals thereof; remain in effect as to any portion of the Lands. It is not intended to enlarge, diminish or in any other way modify the respective rights,interests or titles of any party owning an interest in the Lands, but is to be construed only as giving notice of I1SR's lawful rights under the applicable I.eases and the laws of the State of Colorado. HS RESOURCES, INC. L 1.ic By; J Imes P. SD k, , + •nver Basin L nd Supervisor 5TATI l l:,cOJ.OICkpO cm/AND COUNTY OF DENVER ) • 'fhe foregoing instrument was acknowledged before me this 22nd day of December , 2000, by James P. Wason, as Denver Basin Land Supervisor of IIS Resources, Inc., a Delaware corporation. WITNESS my hand and official seat: Notary Public My Commission expires: -fa“0- nom, EXHIBIT "A" s$C ATTACHED TO AND MADE A PART OF NOTICE OF OIL AND GAS INTERESTS AND SURFACE USE s id oam z T2N-R6BW "�� SECTION 20: S/2 F, WELD COUNTY, COLORADO = ra- ga= •.i ztt _c-. ,.y...s rvY3. ,f . 'G.. `�. -.7; 7-.4---•---_-.--:_ : ' i��. `�'�1 Fl-"1 {.. _.- ° T- v�i . ,� �'j err [ a"- t i t C B— - co CO-002794-000 SHAW, MICHAEL S. &SHAW, THE ANSCHUTZ D8/15/70 634 1556067 2N 68W 20 SE/4SE/4 0 NS- VIRGINIA N. CORPORATION °' CO-002795-000 REGNIER,JULEES G. & THE ANSCHUTZ 08/26/70 634 1556074 2N 68W 20 NVV/4SW/4 on _. REGNIER,JOSEPHINE CORPORATION m ti CO-002826-001 NELSON, MILTON H. & NELSON, THE ANSCHUTZ 08/15/70 636 1558072 2N 68W 20 E/2SW/4 y HELEN C. CORPORATION 20 PT OF NE/4SW/4 LYING N&W OF PLUMB AND DAILEY DITCH 20 NE/4SE/4 20 NW/4SE/4 rn x r r cci 20 SW/4SE14 20 SW/4SW/4 Co C. CO-002826 SCHLAGEL, HERMAN & AMOCO PRODUCTION 0622/81 942 1864197 2N 68W 20 PT OF NE14SWI4 LYING N &W OF PLUMB w -002 SCHLAGEL, BETTY LOUISE COMPANY AND DAILEY DITCH Co a p7er." 1 _4 >F\T BY DGS ��-�LLAV DEKALB 970 304 6498:# 5/11 11111111 IIi lliiill lli illlll1 lilll 1Ul1 Ill Si llll lilt 2820018 01/23/2001 04:35p JR Suki Twkamoto 3 el 3 R 16.00 D 0.00 Weld Counly CO EXHIBIT B Colorado Oil and Gas Conservation Commission GREATER WATTENBERG AREA Special Well Location Rule 318A 320 Acre Spacing Unit 4Q0 I'1400' B00' S BOW 114 460' Tesi 400' x 400' c.20 - T '�. N - RGAW BOO x Boo f 1000 Ft i Scale li III SENT BY:DGS ; 8- 6- 1 ; 9:24AM DEKALB- 970 304 t498::: u. 11 > HUM VIII MINIM rill ItUIII MUCH Illl II / C 12801 3a tt 16.00 000 10:18A JA Sula D 0.00 Wald County CO ktnoto NOTICE OF OIL AND GAS INTERLSTS AND SURFACE USE This Notice of Oil and Gas Interests has been'Itrepared and is being filed of record by I-IS Resources, Inc., (hereinafter, "11SR") whose addres$ is 1999 Broadway, Suite 3600, Denver, Colorado, tier the purpose of providing additional public notice of its rights to make use of the surface of the lands described below for oil and gas explb ation,development and related operations. For such purpose, 1ISR hereby states as follows: 1 IISR is the owner of certain oil and gas leaseh 'id rights affecting the following described lands in Weld County, Colorado (the"Lands"): Township 2 North Range 6 West, 6th P.M. Section 29: N/2 IISR's oil and gas leasehold rights in the Lands rive from those valid and subsisting oil and gas leases which are described on Exhibit "A", attache hereto and incorporated herein, and have been duly recorded in the office of the Clerk and Recur er of Weld County (the "Leases"), Under the laws of the State of Colorado and the ri-irovisionsof the Leases, IISR has certain ae rights to occupy and make use of the surte of the Land ,which rights include hut are not limited to the right to PROSECUTE OIL AND CAS IRILLIN( AND COMPLETION OPERATIONS; PRODUCTION, TRANSPORTATION AND MAI 'ETINC OF OIL, CAS OR OTHER _ HYDROCARBON PRODUCTS AS WELL AS 14K :II'I'S OF ACCESS AND USE OP THE' SURFACE O1""l'l1E LANDS FOR(Y)NSTR1JC IO ,INSTALLATION,MAINTENANCE, REPAIR, REPLACEMENT ANI) MONITORING! OF WELLS, WELL LOCATIONS, EQUIPMENT, MUD AND RESERVE PITS, SI ..1'ARA'I'ORS, TANK BATTERIES, PIPELINES,GATHERING LINES,FLOWLINES,Ii PELINE INTERCONNECTIONS AND ANY AND ALL OTHER REASONABLE OR C STOMAItY USES OF '1'11E LANDS RELATED TO SUCH OPERATIONS. I Exhibit "U" attached hereto is a plat of the Limp showing the allowable locations under Colorado Oil and Gas Conservation Commission Rule 31 SA and indicates potential drillsite locations where oil and gas drilling operations may occd r. This Notice is intended to remain in effect for s long as the Leases, or any extensions or renewals thereol; remain in effect as to any portion of the Lands, It is not intended to enlarge, diminish or in any other way modify the respedaive right9, interests or titles of any party owning an interest in the Lands, but is to be construed only as giving notice of l(SR's lawful rights under the applicable (.eases and the laws of the State of Colorado.I HS RESOIURCES, INC. yd'1 L l l; By: Nk,Y yj am sP. a n •y � ' r , ;' er asiu Land Supervisor y:• t •• . 3OLADO ) i • �, ' ,�M"� 1, ) ss i" 3 puspN r of DENVER ) .., .:.•. giunio; ' ` ;The foregoing instrument was acknowledged before me this_22nd_day of 'November , 2000, by James P. Wason, us Denver Basin Land Supervisor of US Resources, Inc., a Delaware corporation. I WITNESS my hand and official seal. Oftl tiro Lt ±- Notary Publi My Commission expires: a -41 -a C1) I___ EXHIBIT "A" 0 as istri rn ATTACHED TO AND MADE A PART OF NOTICE OF OIL AND GAS INTERESTS AND SURFACE USE 'aiera T2N-R68W ash o SECTION 29: N/2 6iwasmil WELD COUNTY, COLORADO o C pra WEI tetra a _ta=as-�"xT;� z'L -x ., S."t,3'?�. -.ate., .-. �-- +'� :- "'t'•u`.-F_• - _ -,"s o Y� -- 0 CO CO-002794-000 SHAW,MICHAEL S.& SHAW, THE ANSCHUTZ 08/15/70 634 1556067 2N 68W 29 NE4NE/4 LESS A 3 AC TRACT OF , a VIRGINIA N. CORPORATION LAND LYING E OF RR ROW&W OF o arca ' COUNTY ROAD .' CO-002826-001 NELSON, MILTON H.&NELSON, THE ANSCHUTZ D8/15/70 636 1558072 2N 68W 29 NEI4NW/4 a HELEN C. CORPORATION S �; 29 NWi4NE/4 29 NW/4NW/4 29 SE/4NE/4 29 SEI4NW/4 29 SWMNE/4 rn X 29 SW14NW14 CO-002828-001 STROMQUIST FARMS BASIN EXPLORATION 07/13/92 1356 2308592 2N 68W 29 3.0 AC IN NE/4NE/4 LYING E OF ROW INC. OF C, B&Q RR&W OF COUNTY ROAD CO-002828-002 NELSON, MILTON H.&NELSON, BASIN EXPLORATION 07/13/92 1354 2306279 2N 68W 29 3.0 AC IN NE/4NEI4 LYING E OF ROW HELEN C. INC. OF C, B& Q RR&W OF COUNTY ROAD C cc cc Page 1 SC.1T SY:DGS , d 6- 7. J 25A) llEKALB- 870 304 648x; dill I IIN IIIII II1111111111 I1III 11111 II111 at Jill IIII Till 2813720 12/18/2000 10:18A JA SukWTsukantoto 3 0l 3 8 16.00 0 0.00 Weld County CO EXHIBIT S Colorado Oil and Gas Conservation Commission GREATER WATTENBERG AREA Special Well Location Rule 318A , 320 Acne Spacing Unit i 400' ... 400 800' Xli t 1120.-- r0 48� • d400' x 400' Sec.2Q - T a N - R�W ii eoo' x eoo' SENT BY;DGS ; 8- 6- 1 ; 9;25AM ; DEKALB- 270 301 6:198:t 9. 11 1111111 ilia 11111111111."" 111111111 iii 11111111111 2813721 12/1812000 10.1aA JA Saki Tsukamoto 1 0l 3 R 15.00 D 0.00 Weld Calmly CO NOTICE O1?OIL AND GAS INTERESTS AND SURFACE USE This Notice of Oil and Gas Interests has been prepared and is being filed of record by ITS Resources, Inc„ (hereinafter, "11SR") whose address is 1999 Broadway, Suite 3600, Denver, Colorado, for the purpose of providing additional public notice of its rights to make use of the surFtce oldie lands described below for oil and gas exploration,development and related operations. For such purpose, 1-ISR hereby states as Ibliows: IiSR is the owner of certain oil and gas leasehold rights affecting the following described lands in Weld County,Colorado(the "Lands"): Township 2 North, Range 68 West, 6th P.M. Section 29: 8/2 11SR's oil and gas leasehold rights in the Lands derive from those valid and subsisting oil and gas leases which are described on Exhibit"A", attached hereto and incorporated herein, and have been duly recorded in the office of the Clerk and Recorder of Weld County (the "Leases"). Under the laws of the State of Colorado and the provisions of the Leases, IISR has certain rights to occupy and make use of the surface oldie Lands,which rights include but are not limited to the right to PROSECUTE IIII, AND GAS DRILLING AND COMPLETION OPERATIONS; PRODUCTION, TRANSPORTATION AND MARKETING OF OIL, GAS OR OTHER HYDROCARBON PRODUCTS AS WEL1. AS RIGHTS OF ACCESS AND USE OF '1'111: SURFACE OF THE LANDS FOR CONSTRUCTION,INSTALLATION,MAINTENANCE, REPAIR, REPLACEMENT AND MONITORING OF WELLS, WELL LOCATIONS, EQUIPMENT, MUD AND RESERVE PITS, SEPARATORS, TANK BATTERIES, PIPELINES,GATHERING TINES,UI.OWLINES,PIPELINE INTERCONNECTIONS AND ANY AND ALL OTIIEIt REASONABLE OR CUSTOMARY USES OF THE LANDS RELATED TO SUCH OPERATIONS. Exhibit "13" attached hereto is a plat of the Lands showing the allowable locations under Colorado Oil and Gas Conservation Commission Rule 318A and indicates potential drillsite locations where oil and gas drilling operations may occur. This Notice is intended to remain in effect for so long as the Leases, or any extensions or renewals Iltereol', remain in effect as to any portion of the Lands. It is not intended to enlarge, diminish or in any other way modify the respective rights,interests or titles of any party owning an interest in the Lands, but is to he construed only as giving notice of I ISR's lawful rights under the applicable Leases and the laws of the State of Colorado. ITS RESOURCES,INC. 2 �I�.0� Jai es P. Wu' 4.1��f; Denver Basin Land Supervisor Ot4DO g ) ss ft,` wiry OF DENVER ) _ f tigoing instrument was acknowledged before me this 22nd day of November , 200,r Araumes P. Wason, as Denver Basin Land Supervisor of 11S Resources, Inc., a Delaware corporation. WITNESS my hand and official seal. Notary Public My Commission expires: -M ''≥A Y�_ SENT BY-DGS , o- 0- :. • a+:zeAV . DEKALB- 970 304 6498;#10/11 1111111 hill 1111111 IIIII NEB MI L IIIII IIII IIII 2813721 1211812000 10:188 JA Sukl Tsukamato 2 al 3 R 15.00 0 0.00 Wald County CO EXHIBIT B Colorado OH and Gas Conservation Commission GREATER WATTENBERG AREA Special Well Location Rule 318 A f. 320 Acre Spacing Uglt ensamislaimamainrin aoa W 400. r CI 800' cl 800' , a RO'n i i • , all 400' x 400' 1 Sec. - T 2. N - RW 800' x 800' 100Q ft l Scab L..p14N ;cow EXHIBIT "A" J `o� U m N F.; ATTACHED TO AND MADE A PART OF NOTICE OF OIL AND GAS INTERESTS AND SURFACE USE T2N-R68W wars LTh SECTION 29: S/2 a o WELD COUNTY, COLORADO goy. F, ;Kai Immo Icanna: SS[!R :•t xBOOK" X10 iC '> EC3f0N PJ l4 : y ter= o«. • ommi CO-002801-000 CHAMPLIN PETROLEUM AMOCO PRODUCTION 10/16/72 681 1602713 2N 68W 29 SE/4SW/4 LESS RR ROW o COMPANY COMPANY 29 SIA//4NE/4SVV14 ES: 29 SW/4SW/4 CO-002R26-001 NELSON, MILTON H. &NELSON, THE ANSCHUTZ 08/15/70 636 1558072 2N 68W 29 NE/4SE/4 HELEN C. CORPORATION 29 NWi46E/4 29 NW/4SW/4 29 SE/4SE/4 J FqS A l AC TRACT 8 C LESS A1.9 AC TRACT rri 29 SW14SE/4 r— co i CO-002829-000 WOLFE,JACK P.&HOMAN, RUTH BASIN EXPLORATION INC. 07/13/92 1354 2306260 2N 68W 29 1.0 AC TRACT IN SE/4SEJ4 M. CO-002830-060 LARSEN,JEAN LAWRENCE, BASIN EXPLORATION INC. 07/13/92 1354 2306278 2N 68W 29 1.90 AC TRACT IN SE/4SE/4 co LARSEN, LINDA JANE CO-002831-000 BURLINGTON NORTHERN RR BASIN EXPLORATION INC_ 1D/01/91 1368 2319606 2N 66W 29 5.0 AC TRACT IN E/2SW/4 COMPANY cc co co Page 1 ,-.J County PL nning EIE es- HART ENVIRONMENTAL .1 f q ` � E €a; A Member of the Aggregate Environmental Resource Group, LLC. s Michael I. Hart a Associates H September 20, 2001 Mr. Robert Anderson Weld County Planning Department 1555 North 17th Avenue Greeley, CO 80631 Re: USR 1346 Dear Robert: The following information is provided as partial fulfillment of the Weld County • Planning Commission's Conditional Approval of USR 1396, specifically Condition#2, which requires the applicant, Western Mobile Inc. (WMI)to address the following two items: A. "The applicant shall submit, to the Weld County Department of Planning Services, either a copy of an agreement with the property's mineral owners, stipulating that the oil and gas activities have adequately been incorporated into the design of the site, or show evidence that an adequate attempt has been made to mitigate the concerns of the mineral owners." Response: The applicants (WMI and Virginia Shaw) are actively working with representatives of the mineral owners and lessees to address their respective concerns and to enter into a Surface Use Agreement acceptable to all parties. Since the August 7th Planning Commission hearing, representatives of WMI have met with representatives of the following: • RME Petroleum • HS Resources, Inc. (HS) • United States Exploration, Inc. (UXP) • K. P. Kauffman WMI fully expects to enter into a"Surface Use Agreement" prior to the start of mining on the Shaw property(see enclosed draft). 2 5 s lA1endom Anertie P.<) Box ;;0; Boulder ( 80 ion PI;Ery toe..;1+.0002 EXHIBIT Lt4ll AI, ru c,ur:,t f5 u=iroumntl�il AIdn�tr)nneul fpm.( I USt20-i3W Ral8mnllmu I7r‘iJn r Penuilliu8&Zmeiuq i—. Mr. Robert Anderson September 20, 2001 Page Two B. "The applicant shall submit to the Weld County Department of Planning Services proof of ownership documentation showing the right to extract gravel from the Virginia Shaw property in the south half of the SW4,NE4 of the SE4 and the SW4 of the SE4 of Section 20, Township 2N Range 68W [sic] of the NE4 of Section 29." Response: A review of the title work prepared for the Shaw property indicates that Virginia Shaw owns all of the sand and gravel under the areas proposed to be mined. There are two areas outside of the mine limits where the sand and gravel is owned by others. These areas are identified on the enclosed map. Robert, I will be out of town from September 21st through the 28th. In my absence, please call Duane Bollig at (303) 657-4425 if you have any questions. Sincerely, Michael J. (Mike) Hart Encl. cc: Duane Bollig OCT-09-2001 12:45 Lafarge Metro Land 303 657 4037 P.01 LAFARGE FAX TRANSMISSION Western Mobile, Inc., a Subsidiary of Lafarge Corp. Denver Metro Division 1400 West 6e Avenue Denver,CO 80221 303.657.4000 Fax: 303.657.4037 Date: October 9, 2001 To: Robert Anderson Company: Weld County Planning Department 1555 North 17th Avenue Greeley CO 80631 Fax Number: 970.304.6498 No. of pages (including cover sheet): C�J Original: Filed Mailed Sent Overnight From: Duane Bollig Subject: Shaw Property, USR 1346 — Proof of ownership of sand and gravel resource in certain portions of the property Dear Mr. Anderson: This submittal is a follow-up to our phone conversation this morning and to Mike Hart's letter of September 20, 2001,to the Planning Department on the same subject. In its conditional approval of USR 1396, the County Planning Commission requested additional information (Condition#2) requested proof of ownership showing the right to extract gravel from two narrow strips of the Shaw property. The first strip is along the southeast boundary in Section 29, T2N R68W, and the second is along the northeast boundary in Section 20, T2N,R68W. A review of the title work prepared for the Shaw property indicates that Virginia Shaw owns all of the sand and gravel under the areas proposed to be mined. Others own the sand and gravel in the two narrow strips questioned by the Planning Commission; however, these two strips of land are located outside of the proposed mining limits. Attached is a map which identifies these two narrow strips of land. Also, the two attached deeds provide the legal description of these two areas. 1. Quitclaim Deed — Burlington Northern Railroad Co. (Grantor) and Virginia N. Shaw (Grantee), dated January 17, 1995 — regarding the conveyance of the 50-foot-wide railroad right-of-way (ROW) on the northwest side of the centerline of the previously-named Chicago, Burlington & Quincy Railroad over and across the S1/2 NE1/4 of Section 29, T2N R68W. The Grantor reserved the sand and gravel resource, however, this area is outside the proposed mining area. 2. Bargain and Sale Deed —Milton H. Nelson and Helen C. Nelson (Grantors) and Virginia N. Shaw (Grantee), dated July 23, 1999 — regarding the "sliver" of land in a portion of the If you do not receive all pages of this fax, please call 303.657.4425 EXHIBIT (icj- UlttiS+e4134to OCT-09-2001 12:45 Lafarge Metro Land 303 657 4037 P.02 Mr.Robert Anderson October 9,2001 page 2 SW1/4 SEl/4 of Section 20, T2N R68W. Again, this sliver is outside the proposed mining limit. I will bring you a hard copy of this information prior to the County Commissioner's hearing on October 10. Please call me at 303.657.4425 if you have any questions. Best Regards, Duane W. Bollig Division Land Manager encl. cc: Mike Hart • OCT-09-2001 12:45 Laf=rge Metro Land 303 657 4037 P.03 • - - 800 0 800 1600 2400 _ T . ' "-NE :OF. SW 1)4, SE 1/?, GRAPHIC SCALE - FEET SEC710N 20, T 2 N, R 88 w I A ' i ILI/ER EXCLUDED I FROM LEASE AQt4 LEGAL b CRiFTCN. 20 20 21 ZG®28 L POINT OF BZO.NNNG, NE CORNER, NW 1/4, NE 1/4, SECTION 29 1 2 N, R 68 W, 6T-I PM I r 30 NORTH ROW LINE,WCR 76 1/2 $29 E—W CENTERLINE, SEC. 29 / 20928 CENTER 1/4 CORNER SECTION 29, T 2 N, R 60 W 50' PORTION OF A * &t RR ROW - INCLUDED IN LLOEAGSSE AREA L � W 4 DESCRI°TION, 3 / d / , / 9 SHAW LEASE AREA _S_LhE SEC 29 I APRIL 30. 2001 REVISED 2/CS,/Zaoi OCT-09-2001 12:45 Lafarge Metro Land 303 657 4037 P.04 I `t'Y.r < Snu t a� I-)r w 5,v, 1S tp YY*�.4 g {x` Vpc`+ yo -s L` - ,1 , _ yiw . .. a!e+'F, �' •In 1�' t , _� f(%11 �-. !r'„YFl Ya :a- "r I k d21te 9151• I 2 242"hlt, I6-1482 I'-128% (1.1/10M5 02:311' )R; I ci 3 K}:(. Izr' .:. 'Weld I'nu4ty CO Clerk A Kccardcr I.5.nn o..:.i $ QUITCLAIM DEED t:..., Ya, r 11-; THIS DEED, made this l7 f day of c1 .y,_: .1/4; _/yc.i , r' ou4 between BURLINGTON NOR'T'HERN RAILROAD COMPANY (formerly named Burlington Northern Inc. ) , a Delaware corporation, Grantor, and `:_ VIRGINIA N. SHAW, of 1435 WCR 16 1/2, Longmont, Colorado 80504 , ',rvt,..F -, Grantee. 1.<Ei4 ; k:. WITNESSETE: That the said Grantor, for Ten and No/100 Dollars a, - ($10 .00) and . other ' good and valuable consideration to the raid fr i V4 Grantor in hand paid by the said Grantee, the receipt whereof is hereby confessed and acknowledged, hath remised, released, sold, '', conveyed and, quitclaimed, and by these presents doth remise, A* release, esell, convey and quitclaim, without any covenants of . warranty . whatsoever and without recourse to the Grantor, its D' ' ' successors and. assigns, unto the said Grantee, her heirs and assigns forever, all the right, title, interest, claim and demand,, t7 -if any, which the said Grantor hath in and to the following " '' ya- described premises, located in Weld County, Colorado, more y.; - particularly described as follows: r . MIK f' t All that portion of Burlington Northern 'Railroad dompany' s (formerly Chicago, Burlington & Quincy Railroad tl,; Company) 100 foot wide Erie to Longmont, Colorado Branch - a ` • I Line right of way, now discontinued, being 50 feet wide g'-; on each aide of said Railroad Company' s Main Track ' centerline as originally located and constructed upon, over and across, the South Half of the Northeast Quarter of Section 29_�,_9melip, 2 North, Range 68 'Wis'E"8f E4e"tEE Principal— Meridian, Weld County, Colorado, bounded on the wli nr s. North and South by the North and South lines of said 't'" South Half of the Northeast Quarter of Section 29 . " . SUBJECT, however, to all existing interests, including but not t7 limited to all reservations, rights-of-way and easements of record or otherwise. - i' t, EXCEPTING AND RESERVING, however, unto said Grantor, its ( 4, successors and assigns, all of the coal, oil, gas, casinghead gas and all ores- and minerals of every kind and nature, including sand and gravel, underlying the surface of the premises herein conveyed, `. together with the full right, privilege and license at any and all times to explore, or drill for and to protect, conserve, mine, • take, remove and market any and all such products in any manner ry. C which will not damage structures on the surface of the premises - P: herein conveyed, together with the right of access at all times to F exercise said rights. - u r. 1LS0, if the premises are locally assessed, the Grantee, and ` for her heirs and assigns, by acceptance of this deed, agrees to '' as::umc all locally assessed real estate taxes. outstanding and, '$1':-u • if^ • •.:;7 ,1:', 1,:,4, OCT-09-2001 12:46 Lafarge Metro Land 303 657 4037 P.05 eV •.. 'y.M'.,p'.ae hM .,,a�^ Ifs ..f. Y dry ,. ..µ 1 t' Z'jt.+c '''$' ;�'�n�m i , • x"'kt,.,4 , yf-4 A'�h1-1}Ir�tlh .:".-4,',. .;'-;t=, ,, ,y.a1°^ ) ari t7 - 5 t!,4 tC 'rw+ `] ;� ]S ,.a ,ee. ' -?' iwf eeeiee��i 6 r7ere 1VI eerneee Y r r Y_lE n rk'. ee g �" _24?4PIt. fl-I48? I'-l2MM 111(1'1/115 ee: 111' ee 2 hl' 1 * otherwise, . and any and all past, present, vending and tu ;ure e. assessments of every nature whatsoever, which have been or le <y r. levied against the premises. . S,n 1] 3'- ALSO, the Grantee, and for her heirs and assigns, by ‘,•�; ; • acceptance of this deed, hereby releases and forever discharges the • ee e.el `I Grantor, its successors and assigns, from any and all present ortee future obligations of the Grantor, its successors and assigns. gnea. le including but not limited to the construction of or continued maintenance thereto of any railroad fences, snow fences, rage t- crossings, cattle guards, gates, farm crossings, bridges, drainage - .'• or irrieacion pipes, if any, located and situated "- P P on the prem�.cve herein conveyed. . lle re TO HAVE AND TO BOLD the same, together, with alleand singulsr the appurtenances and privileges thereunto belonging, or in anywise ''ree' thereunto ,appertaining, and all the estate, richt, ' title, interest �-;_ and claim whatsoever, of the said Grantor, either in law or equity, y .. v'»i to the only proper use, benefit and behcof of the said :grantee, her .,-,e` heirs and assigns,. forever. Y;,.,.. IN WITNESS WB3REOF, the said Grantor has caused this deed to i_ be signed by its authorized officers, and has caused the seal to be ee, e hereto affixed the day and year first above written. reL e }c BURLINGTON NORTHERN RAILROAD COMPANY . ke cal, .. rir • i • le D.P. Schneider, Director Dx.. Title Services re Field Support F . ' m A.TTEST: l�9 i eeht 14. .- —.02c-"'"1—A_ 07:4F4 l:e ,4( 1€;"•! 1 e -�, , c ;,: 1 / :"Se,. A . Send Tax Bills; To: Assistant Secretary °" Ir3..' Virginia N. S w , ,•• , 1475 WCR 16 1 2 1 • C . 47`. • • Longmont, CO 0504 . ' "" w_ c, 2 e le rI . NS It M= • theirc'4 atedt)S2.5 -3.Ir, 1raif.:. ,. OCT-09-2001 12:46 Lafarge Metro Land 303 657 4037 P.06 6a.)4 -7 2�''2 5 00�Il21viv�i a5* Mold County tiiiO�ii Ili! FRAME of 1 ft tea D e.8e Jp Suck Tauhaaato 0863 -, BARGAIN AND SALE DEED MILTON H. NELSON and HELEN C. NELSON, Grantors, whose address is 3521 Camden Drive, Longmont, Colorado 80503, for the consideration of less than five hundred dollars, in hand pcid, hereby sell and convey to VIRGINIA N. SHAW, Grantee, whose address Is 1435 Weld County Road 16-1/2, Longmont, Colorado 80504, the following described real;property in the County of Weld, and State of Colorado,to wit A portion of the SW1/4 of the SE1/4 of Section 20,Township 2 North,Range 68 West of the B"'P.M.,.described.as.fcilows,to-wit Beginning.at the SE mmer.af.the.SW1/4.of the.SE1/4vf said.Section•20; Thence North 89°50'15*West 64.06 feet Thence North 2°36'50"East 1361.75 feet to the NE comer of the SW1/4 of the SE1/4 of said Section 20; Thence South along the East line of the SW 1/4 of the SE1/4 of said Section 20 to the point of beginning; RESERVING, however, to the Grantors,.their heirs and assigns, all oil, gas and other hydrocarbons, and all gravel underlying said premises, together with necessary rights of way and easements to enter upon said premises to prospect for, mine, drill for, and remove said gravel,oil,gas end other hydrocarbons,without Grantors being liable for subjacent support. or for any damage to the surface caused thereby, and further reserving to the Grantors, their heirs and assigns, whatever surface ground as shall be reasonably needed for drilling, mining, plantioperation and stockpiling of gravel: and subject to contracts and agreements of record. Subject to 1999 general property taxes which Grantee assumes and agrees to pay; N WITNESS WHEREOF,the said Grantors have set their hands and seals this J day of Juiy, 1999. • '44.L., JJ. 925* .!dw., C, Milton H. Nelson,by Helen C.Nelson, Attomey-in-fact L �uliLfy✓ Q. Helen C.Nelson ' STATE OF COLORADO ) ss. COUNTY OF BOULDER ) The foregoing Instrument was acknowledged before me this 2M9day of July, 1999,by Helen C. Nelson.Individually and as Attorney-In-fact for Milton H. Nelson. idfttltpes My hand and official seal. • :" My cerrkgssion expires: October 16,2002. /! air;:O':'"ray; /_ Notary Public. TOTAL P.06 NOTICE O9 2 1S C( n z, -o / EX$ i COMMITMENT AND AGREEMENT THIS COMMITMENT AND AGREEMENT ("Agreement") Is made this gTSday of October, 2001 by yIRGlNIA SHAW ("Shaw"), whose address is & 607 e,5".44 one,SC ftc, re5 ft1o, Co &520 Recitals A. Western Mobile, Inc. has entered into a lease agreement with Shaw as the owner of the surface estate for the property located in Sections 20 end 29, Township 2 North, Range 68 West, Weld County, Colorado (the Property), by which WMI will develop a portion of the Property as an open pit sand and gravel mining operation. B. WMI has filed an application with Weld County ("County") for a site specific development plan and special use permit for Its sand and gravel mining operation, C. RME Petroleum Company, formerly known as Union Pacific Resources Company, including its affiliate, RME Land Corp. ("RME"), Kerr-McGee Rocky Mountain Corporation ("K-M"), and United States Exploration, Inc. ("UXP") (collectively, the "Oil Companies"), each claim ownership and leasehold interests In various portions of the minerals, including the oil, gas and associated liquid hydrocarbons, underlying the Property. D. Current Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations allow the owners and/or lessees of the oil and gas for the Property to locate drillsites pursuant to the Greater Wattenberg Area Special Location Rule (COGCC Rule 318A) ("GWASLR"). Commitment and Agreement Shaw hereby agrees as follows: 1. Drillsite and Production Site Locations. Oil and/or gas wells may be drilled at the locations identified on Exhibits A through D (the "Drillsite Locations"). The Drillsite Locations shall be deemed to be approximate pending a further agreement between or among the parties hereto, The Oil Companies shall have the right to drill more than one well with attendant facilities at each Drillsite Location pursuant to and In accordance with the rules and regulations of the COGCC, and to deepen and recomplete, fracture and refracture any well that is drilled. The Drillsite Locations shall be used exclusively for oil and gas exploration and production operations. 2. Directional Drilling Costs. Shaw acknowledges and agrees that, in order to accommodate the post-reclamation use of the property desired by her, at least one of the wells must be located outside the drilling location prescribed by the GWASLR. In this event, and unless the parties otherwise agree, Shaw agrees to reimburse the Oil Companies (or the operator of a particular Drillsite Location, as appropriate), for the I EXHIBIT 'd 6680 'ON us lt1sq , actual incremental costs of directional drilling which are in excess of the cost of drilling a vertical drillhole at the Drilisite Location. Such reimbursement shall not exceed $45,000 for any well drilled within 300 feet or less of the drilling location prescribed by the GWASLR and $75,000 for any well drilled more than 300 feet from the drilling location prescribed by the GWASLR; provided, however, that Shaw's agreement herein shall expire and be void and of no further force and effect in the event that the Oil Companies or their respective successors and assigns do not file an application for a permit to drill the well generally deathbed on Exhibit C with the COGCC within two (2) years of the date of this Commitment and Agreement. 3. TransmissloriLtnes and Access Roads. Shaw agrees to negotiate and enter into a subsequent agreement on commercially reasonable terms between or among her and some or all of the Oil Companies to locate transmission lines, access roads and other utilities and infrastructure related to the Drillslte Locations, 4. Subsequent Agreement. This Commitment and Agreement shall be binding on Shaw. Notwithstanding the foregoing, she and the Oil Companies may negotiate in good faith and enter into subsequent agreements covering the matters described above and any other issues ordinarily addressed in an agreement between the owners of the surface and mineral estates. 5. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of all Shaw and the Oil Companies. 6. Recording. This Agreement may be recorded with the Clerk and Recorder of Weld County by any party hereto after WMI's special use permit application is approved. Any party so recording this Agreement shall provide evidence to the other parties of the recording. 7. Counterpart and Facsimile Executions. This Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original. IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the date and year first above written. aAR WI &� GI IA SHA 2 E 'd 6E20 'ON VidOZ:t 1OO '6 '130 OCT-08-2001 MON 11 :06 AM MASSEY SEMENOFF FAX Na 3038931829 P. 06•Sri; !J L 4 ,,,,.1;l#X'k 1 n f I rs.:y<.'>{wy• f M. ' 1 ,3 .7 ,,,,y, ; ;r.f,:,;. .. ;-: ra • . ' . - -, ,' -; w s l a �l.Y. ,,,,,„:„.„&..,.,,,,,,:...„ 1 ,� t .,,,,„,,. _•:,-,,...H,,,,, ,,,,,,,,..,,,et .Ar 1 „i n� _ pp t• L 1Y. �.�� ) A?: nom � 'Am i jaye -' -' 1 • ir vt,it'kl`,h:' , + Tip , ..ter-,�} - {r' '.tc d• s C' Iw� Aral A D •i • J. 1fgLfi.! I:. L �i{� ro'�1}�'/ rlr -}( ' r 1,e ` IIL • TM rt-. ,,.p i . i. 5uy L �. ti' � N iPA ....1;''''. 41.l:1/2i: • 1 P. i, . I ."..'.r.b.I.5‘:,..:.1.:...1..' ...D.. err F w • • ti 'aN A T" EXHIBIT A SW1/0SE1/4,.SECTION 40 41 44,fr' 4, . TIN.,R.OW.,ETH P.M. 49 • __• t .,,p µ 0 • 'r qr r . \ , •. . . 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'1`11',%-r*_, 'ir EXHIBIT 1 r 4 NE1/4SW1/e SECTION 29 r � , ` `t 1 s T.YN. R6 1 � r 9W.1 6TH Pit 4. a , �� `ih a) 1/4..V1,": 1 ; �I ! A 4'a a �I� A iM-i r k- .�.r t ` I( ri + A ro I�T Jy C.� � yY I r. t ...7]]] / rQ 1 1 ri ll -i �t 1t. I • L- i Rt5� ar„ S�1 i it + r� F � r:. I 9 'd 6£80 'ON d1 b food '6 '130 wr-uo euul Hun 11 le Hn nBSSrY SEI1EN0F FAX NO, 3038931829 P. 09 ..� .ya��{r e" 4 1ppr �.ii ! 1.h . 1 '/tirl jR Y k',..'J t 3.r 'tit � f>^�9tfk A. 1 a Ib 24' .F11p;' $I tl r.t 1 a, A ryl F c I,It! N`'.1,4t4 r de �id .+p1N1',."". / 1 '• .I.,4A1,- / • 1 1f�ur• fr 7'a* �1 DI �'>°f� f ca r 4'ro 't fY..A,6 a }• IITL gill ti CCC IY J - SL 9 r 2 M l eV ' W1` 'Yl 1'11-4 �I x)0'Ix. • %8J y� ti, 41 1 S r'i`d _�c l'r1 �., aw )'.S �?r'. r•� �d- t ,A�. 3 4q`r` .,s - ---,,P ,Y �? 'Ii 1' 1a" tl i �. .. tt yi IA '� ,,, ...:1--,,......c,. c n . d � 1 1•S tK 1' yxg1 i yf , Sy f'i^ ' f�'1�' II i: . l w t R 1 1F LF" d"47r. J rr 7.k" I ♦ .t t of land situated In>.' 41 21 ': 1" ' .nd In Section 29, -; ;' Sixty-40kt(6e) g; I st n,County of Wel. ....-L. IT EXHIBIT A at follows: p SE1/4,SW1N,SECTION 29 T.2N„R.66W.,6TH P.M. n'oldie NW 1/4 of . `j s;i yr z , .. — ,.. ..r__ �J shiest Comer of +,, F feet(eorractad to i r e N89°50'15"W ° tt to the Northeast atlas 20•. Thence ' s"W 551.73 feet; `\' 1443411299 164.91 ,s co N57° 15'53"Qr eC•Thence 807° 116,39 fait Thence 'w = /NW 364S1 Set •28'00"W ... , 342 86 00 859'31'57"W . ...._.. ,s. ,.:. ., . ., .,.,.�...____...�...._ �.....;.�... _. .noose 83M 83.45 Set to a pain Thence 589° , d Section 29, ? A. f t ; sway line of Weld _.g.rarb deht o! f the SW 1/4 1; Ihte a �' au lint olthe SW . , cline of the • Try we N•35°13'117'E, c ,„ .• � eet to a palm on flu1 • 161/2:Theaee M `�,. line,724.10 feat L 'd 6£2U ON dll b fool 6 '1.00 MASSEY HUDSON'S BAY CENTRE 1600 STOUT STREET, Soot 1 700 SEMENOFF DENVER, COLORADO 80202 SCHWARZ TELEPHONE 303.893.1815 DAVID A. BAILEY & Fax 303.893.1829 303.893.1827 www.mssdenverlaw.com dbailey@mssdenverlaw.com BAILEY, P.C. EDWARD W.STERN,ESQ. ATTORNEYS AT LAW IN MEMORIAM 1942-2000 October 31, 2001 BY TELECOPY: (303) 832-2236 BY TELECOPY: (303) 893-1379 Molly Sommerville, Esq. Dustin Ammons, Esq. Welborn Sullivan Meck & Tooley, P.C. Davis Graham & Stubbs LLP 821 17th Street, Suite 600 1550 17th Street, Suite 500 Denver, Colorado 80202 Denver, Colorado 80202 Re: Shaw Property— Surface Use Agreement Dear Molly and Dustin: I have enclosed for your review and comment a draft Surface Use Agreement that is intended to reflect the recent discussions among the Shaws, Western Mobile and Chris Greneaux at Kerr-McGee. Molly, please let me know if I need to send a copy of the Agreement to Shirley Kovar at UXP directly. Exhibit A will be the legal description of the Shaws' property attached to WMI's lease. Mike is working on Exhibit B, which is a map of the property that will show all four drilling boxes and the location of each well. Please provide any comments you may have to the Agreement to me at your earliest convenience. Western Mobile's review of the Agreement is on-going, and we may have some additional revisions to the enclosed draft. Thanks very much for your assistance. Please call if you have any questions. Yours ry truly, avid A. Bailey DAB/zm Enclosure cc: Mr. Duane Bollig EXHIBIT Mr. Mike Hart usie.tl3'-i4 SURFACE USE AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this _ day of November, 2001 by and among RME PETROLEUM COMPANY, formerly known as Union Pacific Resources Company ("RME"), with an address of P.O. Box 1330, Houston, Texas 77251-1330, KERR-MCGEE ROCKY MOUNTAIN CORPORATION ("KM"), with an address of 1999 Broadway, Suite 3600 Denver, Colorado 80202 and UNITED STATES EXPLORATION, INC. ("UXP") with an address of 1560 Broadway, Suite 1900, Denver, Colorado 80202 (KM, UXP and RME are sometimes referred to together as the "Oil Companies") and WESTERN MOBILE, INC. ("WMI"), a subsidiary of Lafarge North America, with an address of 1400 West 64TH Ave., P.O. Box 215001, Denver, Colorado, 80221-8599, and VIRGINIA SHAW ("Shaw") with an address of 6967 Summerset Ave., Firestone, Colorado 80520. Recitals A. Shaw owns the surface estate for property identified on Exhibit A, which is located in Township 2 North, Range 68 West, Weld County, Colorado ("Property). B. Shaw has entered into an agreement with WMI to lease the Property to WMI for an open pit sand and gravel mining operation. C. WMI and Shaw have filed an application with Weld County ("County") for a site specific development plan and special use permit for the sand and gravel mining operation. D. RME Petroleum and an affiliate, RME Land Corp. ("RME Land"), own all of the minerals underlying a portion of the Property. Specifically, RME Petroleum owns the oil, gas and associated liquid hydrocarbons under a portion of the Property, and RME Land owns all of the minerals, including the coal, exclusive of oil, gas and associated liquid hydrocarbons underlying a portion of the Property. E. RME Petroleum, or a predecessor company, as owner of the oil and gas estate, has granted certain oil and gas leases for portions of the Property to UXP and other oil and gas leasehold interests have been assigned to KM. F. KM owns or claims the oil, gas and associated liquid hydrocarbons under other portions of the Property in which neither RME nor UXP have any interest. G. Current Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations would allow the owners and/or lessees of the oil and gas for the Property to locate drillsites in approximately the center of the quarter section and in the center of each quarter-quarter section. H. The parties enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate and to delineate the process with which the parties shall comply with respect to the development of the two estates. This Agreement is limited to the compatible development of the surface estate and the oil and gas estate. It does not in any respect apply to the minerals owned or claimed by RME Land which are the subject of a separate agreement. Agreement NOW, THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the parties agree as follows: 1. Drillsite and Production Site Locations. a. The Oil Companies shall drill oil and/or gas wells only at the locations identified on Exhibit B as the "Drillsite Locations." b. The dimensions of each Drillsite Location shall be approximately 200 feet by 300 feet or any other dimensions as the Shaws and the Oil Companies may agree to in the field. c. The Oil Companies shall have the right to drill more than one well with attendant facilities at each Drillsite Location, and to deepen and recomplete, fracture and refracture any well that is drilled. d. The Drillsite Locations shall be used exclusively for oil and gas exploration and production operations. e. For any Drillsite Location that is disturbed by mining operations, WMI and Shaw shall reclaim, at their sole cost and expense, each Drillsite Location to the pre- mining surface elevation thereof and to the dimensions set forth above. f. The Oil Companies shall pay all costs and expenses associated with: (i) preparation of the Drillsite Locations for oil and gas exploration and production operations; (ii) drilling (including directional drilling) and completion of any well located on the Drillsite Locations notwithstanding the location of the same in relationship to the center of the quarter-quarter section in which it is located; and (iii) construction, operation and maintenance of all attendant facilities necessary to produce, store and transport oil, gas and associated liquid hydrocarbons. 2. Access to Drillsite Locations. a. Access to each of the Drillsite Locations shall be, unless otherwise agreed to by the affected parties, at the locations identified on Exhibit B. b. Access to a Drillsite Location may be changed by mutual agreement of the parties and the appropriate oil and gas owners. 2 c. The Oil Companies and Shaw shall keep all access roads used by them in good condition and repair and shall allocate the cost thereof between or among them in proportion to their respective use of such roads; provided, however, if any of them cause damage to a road, the party causing the damage shall promptly repair any damage at its sole cost and expense. No party shall unreasonably interfere with the use by the others of an access road. d. Oil and gas access roads shall be not more than twenty (20) feet or more in width. 3. Pipeline and Related Easements. Shaw and the Oil Companies agree to negotiate and enter into subsequent agreements on commercially reasonable terms pertaining to location of pipelines, transmission lines and other utilities and infrastructure related to use of the Drillsite Locations. 4. Hearing and Special Use Approval. A hearing for final approval of a special use permit application or other land use application for the Property is scheduled before the Weld County Board of County Commissioners on November 14, 2001 at 10:00 a.m. Upon execution of this Agreement, the objection of the Oil Companies to any land use approval sought by WMI and Shaw from Weld County shall be deemed to be withdrawn and the Oil Companies shall forthwith notify Weld County in writing of the same. 5. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the personal representatives, heirs, successors and assigns of all of the parties, and the benefits of this Agreement shall inure to their personal representatives, heirs, successors and assigns. This Agreement and all of the covenants in it shall be covenants running with the land. 6. Recording. Any party to this Agreement may record this Agreement with the Clerk and Recorder of Weld County within fifteen days after a special use permit application is approved for all or any portion of the Property, and such party shall provide evidence to the Oil Companies of the recording. 7. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado. 8. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 9. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by (a) personal delivery; (b) expedited delivery service with proof of delivery; (c) United States mail, postage prepaid, and registered or certified 3 mail with return receipt requested; of (d) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: RME Petroleum: RME Petroleum Company do Anadarko Petroleum Corporation Attention: Tom Marranzino P.O. Box 1330 Houston, Texas 77251-1330 UXP: United States Exploration, Inc. Attn: Shirley Kovar 1560 Broadway, Suite 1900 Denver, Colorado 80202 KM: Kerr-McGee Rocky Mountain Corporation Attn: Chris Greneaux 1999 Broadway, Suite 3600 Denver, Colorado 80202 WMI: Western Mobile, Inc. Attn. Duane Bollig 1400 West 64th Ave. P.O. Box 215001 Denver, Colorado 80221-8599 Shaw: Virginia Shaw 6967 Summerset Ave. Firestone, Colorado 80520 10. Incorporation by Reference. Exhibits A-D are incorporated into this Agreement by reference. 11. Entire Agreement. This Agreement sets forth the entire understanding among the parties and supersedes any previous communications, representations or agreements, whether oral or written. No change of any of the terms or conditions herein shall be valid or binding on any party unless in writing and signed by an authorized representative of each party. 12. Counterpart and Facsimile Executions. This Agreement may be executed in counterparts and by facsimile transmission, each of which shall be deemed an original. IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the date and year first above written. 4 RME PETROLEUM COMPANY By: Attorney-in-Fact STATE OF TEXAS ) ss. COUNTY OF HARRIS ) The foregoing instrument was acknowledged before me this day of 2001, by , as Attorney-in-Fact for RME PETROLEUM COMPANY. Witness by hand and official seal. My Commission Expires: Notary Public 6 KERR-MCGEE ROCKY MOUNTAIN CORPORATION By: Its: STATE OF COLORADO ) ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2001, by , as for KERR-MCGEE ROCKY MOUNTAIN CORPORATION. Witness by hand and official seal. My Commission Expires: Notary Public 7 UNITED STATES EXPLORATION, INC. By: Its: STATE OF COLORADO ) ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2001, by , as for UNITE[) STATES EXPLORATION, INC. Witness by hand and official seal. My Commission Expires: Notary Public 8 WESTERN MOBILE, INC., a subsidiary of Lafarge North America By: Its: STATE OF COLORADO ) ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2001, by , as for WESTERN MOBILE, INC. Witness by hand and official seal. My Commission Expires: Notary Public 9 VIRGINIA SHAW STATE OF COLORADO ) ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of 2001, by VIRGINIA SHAW individually. Witness by hand and official seal. My Commission Expires: Notary Public 10 Hello