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Home My WebLink About860457.tiff RESOLUTION RE: APPROVAL OF USE BY SPECIAL REVIEW FOR OIL AND GAS PRODUCTION FACILITIES IN AN R-1 (LOW DENSITY RESIDENTIAL) ZONE DISTRICT - ELK EXPLORATION, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners held a public hearing on the 7th day of May, 1986 , at the hour of 2 : 00 p.m. in the Chambers of the Board for the purpose of hearing the application of Elk Exploration, Inc. , 535 Pacific Avenue, San Francisco, California 94133 , for a Use by Special Review for oil and gas production facilities in an R-1 (Low Density Residential) Zone District on the following described real estate, to-wit: Part of the SW4 NE4, Section 24 , Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado WHEREAS, Section 24 . 4. 2 of the Weld County Zoning Ordinance provides standards for review of said Use by Special Review, and WHEREAS, the Board of County Commissioners heard all of the testimony and statements of those present, has studied the request of the applicant and the recommendations of the Weld County Planning Commission and all of the exhibits and evidence presented in this matter and, having been fully informed, finds that this request shall be approved for the following reasons: 1 . The submitted materials are in compliance with the application requirements of Section 24. 7 of the Weld County Zoning Ordinance. 2. It is the opinion of the Board of County Commissioners that the applicant has shown compliance with Section 24 . 4 . 2 of the Weld County Zoning Ordinance as follows: a. All mineral resources are fixed in location. The mineral extraction industry is; therefore, restricted in its operation to those areas where the resources lie. The subject site is zoned R-1 (Low Density Residential) , but is not platted for residential development. The Comprehensive Plan policies encourage mineral extraction prior to development. Residential 1p development on the 1 1. 00 (/. f' �_Xr1 69) 1� 860457 Page 2 RE: USR - ELK EXPLORATION, INC. subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan. b. The proposal is allowed as a Use by Special Review in the R-1 (Low Density Residential) Zone District. c. The Greeley Planning Commission and Evans Planning Commission have recommended no objection to this proposal. Their concerns, however, are addressed in the Development Standards . d. The attached Development Standards will make the proposal compatible with existing and future development of the surrounding area as permitted by the existing zoning. e. No overlay districts affect the site. f. Use by Special Review Development Standards will provide adequate protection of the -health, safety and welfare of the neighborhood and County. NOW, _THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the application for a Use by Special Review for oil and gas production facilities in an R-1 (Low Density Residential) Zone District on the hereinabove described parcel of land be , and hereby is, granted subject to the following conditions: 1 . The attached Development Standards for the Use by Special Review permit be adopted and placed on the Use by Special :Review plat prior to recording the plat. 2. The Use by Special Review activity shall tot occur nor shall any building ar electrical permits be issued on the property until the following items have been accomplished: a. The use by Special Review plat has been delivered to the Department of Planning Services _Office and the plat is ready to be recorded in the office of the Weld County Clerk and Recorder. 860457 Page 3 RE: USR - ELK EXPLORATION, INC. b. _The -applicant/operator shall submit evidence to the Department of Planning Services that the required emissions permit for the Air Pollution Control Division, Colorado Department of Health, has been obtained. c. The applicant/operator shall submit a copy of an insurance polity to the -Department of Planning Services in the amount of five hundred thousand dollars (-$500,000. 00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out o₹ the drilling, maintenance, production, or other work done with respect to such proposed oil and gas wells. The policy shall be written by a company authorized to do business in the State of Color-ado. If the insurance policy lapses or becomes void for any reason whatsoever, the Use by Special Review permit shall cease to exist until a new insurance policy is -provided and filed with the Department of Planning Services. All well activity shall be shut-down and all operations and production shall be suspended and discontinued, consistent with safety considerations , until the operator provides evidence of insurance in the prescribed amount. d. The applicant/operator shall provide a list of the maximum quantities of hazardous substances expected at the site and -emergency phone numbers and addresses of operators to the -State Health Department, Division of Waste Management; the Weld County Emergency Response Coordinator; and the Western Hills Fire Protection District. Evidence shall be delivered to the Department of Planning Services indicating this has been _done. e. Evidence of a fifty thousand dollar (-$50 ,000. 00) bond or an irrevocable letter of credit for each well shall be filed with the Department of Planning Services as required by Development Standard #11 . 3 . The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans :Planning Commission. 860457 1 Page 4 RE: USR - ELK EXPLORATION, INC. 4. Prior to recording the Use by Special Review plat, it shall be amended to show the relocation of the tank battery. The above and foregoing Resolution was, on motion duly made ant seconded, adopted by the following vote on the 7th day of May, A.D. , 1986 . M /J � BOARD OF COUNTY COMMISSIONERS ATTEST: '/ f In w� WELD COUNTY, COLORADO Weld County Clerk and Recorder and Clerk to the Board Ja quel e £h. -o - hairman rBY. Go a Y. Pr em r puty County C rk APPROVED AS_ TO FORM: erre R. :ran net. e C.W. Kirb ,�%L County Attorneyefrnk4 ,�� Fra Y uc ��` 860457 7 DEVELOPMENT STANDARDS Elk Exploration, Inc. USR-718: 85: 65 1. The Use by Special Review permit is for oil and gas production facilities in an R-1 (Low Density Residential) Zone District as submitted in the application materials on file in the Department of Planning Services and subject to the Development Standards stated herein. 2. All tank batteries shall be designed to meet the following standards: a. The tank battery cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. b. A six-foot chain link fence with three-strand barbed wire top shall enclose the tank battery cluster. c. All tank batteries shall be painted a wheat color as recommended by the City of Greeley. 3. Smoking shall not be permitted at any well location or tank battery location at any time, -and signs indicating such prohibition shall be placed on the well site and at the tank battery location. 4. Adequate fire fighting apparatus shall be maintained on the well site at all times during drilling and production. 5. Prior to drilling, a metal sign shall be placed on the property indicating the name and telephone number of the person (s) to contact in the event of an emergency. 6. Noise standards as delineated in C.R.S. 25-12-101 et seq. , must be maintained. 7 . All land within twenty-five feet of any oil or gas tank containing flammable or combustible materials , or other appurtenant well production equipment shall be kept free of dry weeds , grass or rubbish. 8 . Only hydraulic electric pumps shall be used in conjunction with the oil and gas production facilities. 860457 T Page 2 DEVELOPMENT STANDARDS - ELK EXPLORATION, INC. 9. Oil and gas production facilities shall be located at least three hundred feet from property lines or public rights-of-way. 10. The on-site oil and gas storage shall meet the City of Greeley' s Uniform Fire Code. 11 . The applicant/operator shall provide a fifty thousand dollar ($50 , 000 . 00) performance bond or an irrevocable letter of credit to each well guaranteeing that the applicant/operator would meet the requirements of this permit and other applicable Weld County regulations. In the event of default, it would be made payable to the Weld County Board of County Commissioners for the purposes of bringing the well into compliance until the well is capped in accordance with State regulations. 12 . The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans Planning Commission. 13 . No permanent disposal of wastes shall be permitted on the site. 14 . The drilling and :production of any well shall comply with the Colorado Oil and Gas Conservation Commission regulations pertaining to oil and gas drilling rules. 15 . Drilling muds can be used as an agricultural enhancement. The drilling muds must be applied and disked into sandy soils with the landowner' s consent. 16. Upon cessation of the proposed use, the oil and gas production facilities shall be removed and the land shall be reclaimed to its prior use. 17 . All construction done on the property shall be in accordance with the requirements of the Weld County Building Code Ordinance. 18 . The property owner or operator shall be responsible for complying with the Design Standards of Section 24. 5 of the Weld County Zoning Ordinance. 19. The property owner or operator shall be responsible for complying with the Operation Standards of Section 24. 6 of the Weld County Zoning Ordinance. 860457 Page 3 DEVELOPMENT STANDARDS - ELK EXPLORATION, INC. 20 . Personnel from the Weld County Health Department, Weld County Department of Planning Services , and the Western Hills Fire Protection District shall be granted access onto the property at any reasonable time in order to insure the activities carried out on the property comply with the Development Standards stated herein and all applicable Weld County regulations. 21. The Use by Special Review area shall be limited to the plans shown herein and governed by the foregoing Standards and all applicable Weld County regulations. Any material deviations from the plans or Standards as shown or stated shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 22 . The property owner or operator shall be responsible for complying with all of the foregoing Standards. Noncompliance with any of the foregoing Standards may be reason for revocation of the Permit by the Board of County Commissioners. 860457 HEARING CERTIFICATION DOCKET NO. 86-14 RE: USE BY SPECIAL REVIEW FOR OIL AND GAS PRODUCTION FACILITIES IN AN R-1 (LOW DENSITY RESIDENTIAL) ZONE DISTRICT - ELK EXPLORATION, INC. A public hearing was conducted on May 7, 1986, at 2:00 P.M. , with the following present: Commissioner Jacqueline Johnson, Chairman Commissioner Gordon E. Lacy, Pro-Tem Commissioner Gene Brantner Commissioner C.W. Kirby Commissioner Frank Yamaguchi Also present: Acting Clerk to the Board, Mary Reiff Assistant County Attorney, Lee D. Morrison Planning Department representative, Debbie de Besche The following business was transacted: I hereby certify that pursuant to a notice dated February 19, 1986, and duly published February 27, 1986, in the Johnstown Breeze, a public hearing was conducted to consider the request of Elk Exploration, Inc. for a Use by Special Review for oil and gas production facilities in an R-1 (Low Density Residential) Zone District. Lee Morrison, Assistant County Attorney, made this matter of record, stating that this matter was continued from April 23, 1986. Debbie de Besche, Planning Department representative, stated that the Planning Commission's motion for approval resulted in a tie vote and the matter was forwarded to the Board without recommendation. She said that the Planning staff had recommended approval subject to four Conditions and 22 Development Standards. Ronald Jacobs, representing the applicant, stated that this matter was approved by the Evans and Greeley Planning Commissions. He gave members of the Board copies of a diagram showing the location of existing wells in the area. He also stated that there is a possibility that his company may not drill in the area since a dry well does exist nearby. (TAPE CHANGE #86-34) Ms. de Besche reported that the Planning staff worked with the City of Greeley in developing the proposed Development Standards, and they comply with existing Greeley regulations regarding well drilling sites. She also stated that the Planning staff would request that the phrase, "and Eaton Fire Protection District" be deleted from the fifth paragraph of Condition 2. It was the consensus of the Board that the phrase be deleted. No public comment was offered regarding this request. Commissioner Lacy moved to approve the Use by Special Review, subject to the amended Conditions and Development Standards as proposed. The motion, seconded by Commissioner Kirby, carried unanimously. PL OO.2 "7 ec Page 2 RE: USE BY SPECIAL REVIEW - ELK EXPLORATION, INC. This Certification was approved on the 12th day of May, 1986. APPROVED: Ln BOARD OF COUNTY COMMISSIONERS ATTEST: WELD COUNTY, COLORADO Weld County C erk and Recorder • and Clerk to the Boar \ Ja quel - J. n`v Chairman BY: 0/A-lit �e/�,14:4—,.6.� - . D uty County Cle Go dj acy, "! .ene R. Brantner • C.W. Kirby Fran . amaguc TAPE #86-33 & #86-34 DOCKET #86-14 PL0027 860445 • ATTENDANCE RECORD TODAY ' S HEARINGS ARE AS FOLLOWS : MAY 7, 1986 DOCKET # 85-65 SHOW CAUSE, SUP #413 - PAUL & PEGGY PAGE DOCKET # 86-14 USR, OIL & GAS FACILITIES IN R-1 ZONE DISTRICT - ELK EXPLORATION(INC. DOCKET # 86-30 TRANSFER CERTIFICATION OF DESIGNATION - WASTE SERVICES, INC. DOCKET #86-23 AMEND USR, DOG KENNEL - LEWIS & BARBARA CORNELL PLEASE write or print legibly your - name, address and the DOC ii, (as 1 =—nd above) or the applicants name of the hearing you are attending. NAME ADDRESS HEARING ATTENDING ik 1 m; } { lam " P 7� Y•) d / eiiis l�/'/ 7'7 ? ( ? .2f ca,.►..d 3. AC-04-5 3391 2-7).(s G L L USR - o i NOTICE Pursuant to the zoning laws of the State of Colorado and the Weld County Zoning Ordinance, a public hearing will be held in the Chambers of the Board of County Commissioners of Weld County, Colorado, Weld County Centennial Center, 915 10th Street, First Floor, Greeley, Colorado, at the time specified. All persons in any manner interested in the Use by Special Review are requested to attend and may be heard. Should the applicant or any interested party desire the presence of a court reporter to make a record of the proceedings, in addition to the taped record which will be kept during the hearing, the Clerk to the Board's Office can be contacted for a list of court reporters in the area. If a court reporter is obtained, the Clerk to the Board's Office shall be advised in writing of such action at least five days prior to the hearing. The cost of engaging a court reporter shall be borne by the requesting party. BE IT ALSO KNOWN that the text and maps so certified by the Weld County Planning Commission may be examined in the office of the Clerk to the Board of County Commissioners, located in the Weld County Centennial Center, 915 10th Street, Third Floor, Greeley, Colorado. APPLICANT DOCKET NO. 86-14 Elk Exploration, Inc. 535 Pacific Avenue San Francisco, California 94133 DATE: March 12, 1986 TIME: 2:00 P.M. REQUEST: Use by Special Review - Oil and gas production facilities in an R-1 (Low Density Residential) Zone District LEGAL DESCRIPTION: Part of the SW} NE , Section 24, Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO BY: MARY ANN FEUERSTEIN COUNTY CLERK AND RECORDER AND CLERK TO THE BOARD BY: Mary Reiff, Deputy DATED: February 19, 1986 PUBLISHED: February 27, 1986, in the Johnstown Breeze I DATE : February 19 , 1986 TO: The Board of County Commissioners Weld County, Colorado FROM: Clerk to the Board Office Commissioners : If you have no objections , we have tentatively set the following hearing for the 12th day of March, 1986 , at 2 : 00 P.M. Docket No. 86-14 - USR, Oil and gas production facilities in an R-1 Zone District - Elk Exploration, Inc . OFFICE OF THE C E TO THE BOARD BY: �, /20..y 9 Deputy The above mentioned hearing date and hearing time may be scheduled on the agenda as stated above. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO --- enuanb P�£5 --- (. i ,, .a O ❑ • ®, r' •• W J .1 • W - 4 O \\*" .44:..: .e• re' a ro v •• c d N • / in o D \Q • ^y • a) 1.-7 c o 0 ... . - % At: • 3 • Yk• • ...1 •• . J j lit J W W F u t iv i G C a I .6 . z I . 00 ! 1 ' tCqs.":..c_ if I In Ca • W VI � ' ��I• /1111 - • n. M _ W ' I. Q _ O. 2 --- anuany 935£ .-.= O '' U' • _Z I _ ). Wi I ... `• • , ` 1 .. •t•• • .•� . • "' N:i r.q:: . {O . ,...,..:.e......•• • . X '� W r 71 7m.011,111191131 IhMlimmor ELK EXPLORATION, INC. 510 PETROLEUM BUILDING 110-16TH STREET DENVER.COLORADO.80202 (303) 6297999 March 7 , 1986 Ms . Debbie DeBesche Weld County Board of County Commissioners 915 10th Street Greeley , CO 80631 Re : Use by Special Review Request , Docket # 86-14 Dear Debbie : I have been advised that there will be only three members of the Board of Commissioners present at the hearing scheduled on March 12th to review the above " USR" request . Since it would take unanimous approval of the three members I herewith request a continuance of the review until such time as all members can be present . Thank you for your consideration . -- Very ly urs , Elk Exp r ion , Inc . Ronald,B Ja obs I 0 n'di P::5—(111{,!18:1165— imi weld co, Molina commission NOT I C E Pursuant to the zoning laws of the State of Colorado and the Weld County Zoning Ordinance, a public hearing will be held in the Chambers of the Board of County Commissioners of Weld County, Colorado, Weld County Centennial Center, 915 10th Street, First Floor, Greeley, Colorado, at the time specified. All persons in any manner interested in the Use by Special Review are requested to attend and may be heard. Should the applicant or any interested party desire the presence of a court reporter to make a record of the proceedings, in addition to the taped record which will be kept during the hearing, the Clerk to the Board's Office can be contacted for a list of court reporters in the area. If a court reporter is obtained, the Clerk to the Board's Office shall be advised in writing of such action at least five days prior to the hearing. The cost of engaging a court reporter shall be borne by the requesting party. BE IT ALSO KNOWN that the text and maps so certified by the Weld County Planning Commission may be examined in the office of the Clerk to the Board of County Commissioners, located in the Weld County Centennial Center, 915 10th Street, Third Floor, Greeley, Colorado. APPLICANT DOCKET NO. 86-14 Elk Exploration, Inc. 535 Pacific Avenue San Francisco, California 94133 DATE: March 12, 1986 TIME: 2:00 P.M. REQUEST: Use by Special Review - Oil and gas production facilities in an R-1 (Low Density Residential) Zone District LEGAL DESCRIPTION: Part of the SWI NEl , Section 24, Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO BY: MARY ANN FEUERSTEIN COUNTY CLERK AND RECORDER AND CLERK TO THE BOARD BY: Mary Reiff, Deputy DATED: February 19, 1986 PUBLISHED: February 27, 1986, in the Johnstown Breeze DE toifizz5:1 ,CX/i/B,7 / I' AFFIDAVIT OF PUBLICATION THE JOHNSTOWN BREEZE STATE OF COLORADO ) the State t to t cola a nil laws of I SS e of Zon iatl0 and the COUN'Ct' Oh 1VIsLD Weld County Zpnr9 Ordinance, tha e Chamber; Wff bBoard or; I, Clyde Briggs, du solemnly swear that I county her; of Weld and publisher of The .Johnstown Breeze. contenmColora o;Weld County th Street First rte,,h3P that the saute is a weekly newspaper Colorado, at the time specified' printed, in whole or in part, and published All persons m any manner in the County of Weld, State of Colorado. R vi steel i.the Useedbfo 3tp attend and has a general circulation therein; that and may be heard. said newspaper has been published Should the applicant or any continuously and uninterruptedly in said interested. parry desire the County of Weld for a period of more than presence of ;_court reporter t0 make a record ottne fifty-two consecutive weeks prior to the ceedinga,in addition to the tar etl first publication of the annexed It-gal holler record which will tie kept during the nearin�®® the Clark to the or advertisement; that said newspaper has Board's Office can be contacted for a list of court reporters in the been admitted to the United States mail, a, area. If a court rt.heeporter is second-class matter under the provisions 01 Office aif il.be lady in to.fie Boarn's of such action at lens ve days the Act of March a, IK7'J, (if an) prior to the hearing. The cost of amendments thereof, and that said engaging a court reporter shall newspaper is a weekly newspaper duly be borne by the reo4eating Party. qualified for publishing legal notices and BE IT ALSO KNOWN- that the advertisements within the meaning of the text and maps so mligneed by the weld county Planning.commis laws of the State of Colorado. lion may be examined in the office of the Clerk to the Board of That the annexed legal notice or advertise County Commissioners, located mcnl was published in the regular and in the Weld Count Centennial Center, 915 10th Street, Third entire issue of every number of caid weekly Floor, Greeley, Colorado. newspaper for the period of consecu- DOCKET NO. 86-14 tive insertions; and that the first APLICANT Elk Exploration, Inc. - publication of said not ire was in the issin4oL 535 Pacific Avenue said newspaper doled r- 27 ad). �G San Francisco, California 94133 and that the last publication of said notice DATE: March .12, 1986 was in the issue of said newspaper dated TIME 2:00 P.M. A.D. 19 REQUEST: Use bv. 'Special In witness whereof I have hereunto set Review - Oil-and ges production my hand_tlus Z day ulj-f-� facilities In an R-1 (Low Density A.U. HI. 6,6 Residential) Zone District LEGAL DESCRIPTION: Part of �� the SW' NEy, Section 24 �• Township 5 North, Range 66 �./ West of toe 8th P.M., Weltl County, Colorado Publisher BOARD OF COUNTY WNERS ELD COUNTTY,COMMCOLORADO BY: MARY ANN Subscribed anti sworn to before me, a FEUERSTEIN Notary Public in and for the County of COUNTY CLERK ANDa2lJ . day nl _ RECORDER AND CLERK yid) Stale of Co101'a u�, 11115 .. .. .. TO THE BOARD �}//,�(ri`lL�.. A.D. 1' . .. ... BY: Mary Reiff. Deputy DATED: February 19, 1986 ¢ ' PUBLISHED: February 27, 1986 ti 1c11"- ., -�� in the Johnstown Breeze NOlal') i•t:h!u: My commission expires My r-ommiss,or 1.ponce h4rui V#„ 'I9S? S;-)nth Paristi Avenue ,ohuctc..... tO 80534 / A 1 I ----_ Affidavit of Publication STATE OF COLORADO ss. County of Weld, Millette S. Clarkson of said County of Weld, being duly sworn, say that I am an advertising Berk of THE GREELEY DAILY TRIBUNE, and THE GREELEY REPUBLICAN that the same is a daily newspaper of general circulation and printed and published in the City of Greeley, in said county and state; that the notice or advertisement, of which the annexed is a true copy, has been published in said daily newspaper for consecutive Meevdelhl3Vre7�Wj ^"wE'�!Iro..� (days) Xi(kW); that the notice was published in the 21110.41 Calittifir Set*�° regular and entire gt issue of every number of said ARldr,a e1 minty •"nial enter i 1ree, Firsl newspaper during the period and time of publication of eY 06lerado,a be time apecltµe.All PerT ee'Care Manner IneryNed in said notice, and in the newspaper proper and not in a N1entl NMhhYIle heard. Spplal RdYlew are reeusatetlro a•=a „ruoAirlro majaaKod of• ,�hePaT+Y.daalre,tla presence supplement thereof; that the first publication of said ro tM tapedtwerp whichwill be kept during Reproceedings heal Ina In addition Clak notice was contained in the issue of said newspaper No}M Board'a tang can M is obtained, contacted for a NW of court rep9rrers m the area.Ma alert rpent"15 obtained,the attic to the Board's OF Rceeh bead l IN„ 40 wrhNpM aualla p bearing date by/M ne•„`"B O9 aalt9e YgaBInBa cot•"rap twist rrshallbabyne pp.aryryyy�� h prior BE App X "that the text Ttvent -seventh Weld comfy Mgt Cem,ninion MalyMd Molts teed In the by iRe Y ChInyrk ro•BWAS ofCoUntyCummiyjptram,�Iacatedrin�MeWeel°d` day of February A.D. 19__.s�Calbrad9. "rte"WI Ce"�'the Beth Street,Third Floor, Greeley. ObCKsrIW.Ba.0 and the last publication thereof; in the issue of said Elk Exploration,I newspaper bearing date the 535 Pacific Avenue bATE:.Merc1,15,194 - San Francieca,California 94133 YR>rDUEit�:She by SpecIN Review- < . Twenty-CPVeflth OH! M WI ILoeDNaRY Residential)Sone District re<III day of Fahn Oc'4EGAL.OB3rrib.Rene Part of the SWW.NE!ld County, A.D. 19�U, TownMip S.N'arfh,Ranpeq BreitoftM 6th P.M.,Weld CWnly, that said The Greeley Daily Tribune and The Greeley Col- orado Republican, has been published continuously and BOARD OF COUNTY COMMISSIONERS B :ELD COUNTY,MARY ANN FEUERSTEDIN uninterruptedly during the couriry CLERK p Y period of at least six KAND RECORDER months next prior to the first issue thereof contained ip a bi,art; ra:,r said notice or advertisement above referred to; that said newspaper has been admitted to the United States mails as second-class matter under the provisions of the Act of March 3, 1879, or any amendments thereof; and that said newspaper is a daily newspaper duly qualified for publishing legal notices and advertisements within the meaning of the laws of the State of Colorado. February 27,1986 Total Charge: $26.24 Advertising Clerk Subscribed and sworn to before me this ,27 day of/.� February A.D. 19_86_ My%tgmmission exMr�sommission Expires Ton. 14, 199 Notary Public fid , _ ii, tv) :�Vf Li 1 21985 ^. io 55,6,(1, c. OFFICE OF BOARD OF COUNTY COMMISB1EF EELS:_ WilpSi- by �- - PHONE(303)356-4000. EXT. 4200 Ea4,,, «icr.•,er _1 P.O. BOX 758 C. GREELEY COLORADO 80632 COLORADO January 27, 1986 Elk Exploration, Inc. I f 535 FaLifi... A.,....., ; 3341 23a2 /1vaAvc_. Son Fraaciaco, CA 91133 `G,tak7 CO 80(031 Dear Sirs: Your application for a Use by Special Review permit for oil and gas production facilities in an R-1 Zone District has been forwarded to the Board of County Commissioners without recommendation by the Planning Commission. The legal description of the property involved is shown as part of the SWk NE}, Section 24, Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado. If you wish to be heard by the Board of County Commissioners, it will be necessary for you to indicate your request by signing the bottom of this letter and returning it to this office. Regular hearing procedures will then be followed. This includes publishing a Notice of Hearing in the legal newspaper, an expense to be paid by you. In order to proceed as quickly as possible, we must receive your reply by February 14, 1986. If we are not in receipt of your request by that date, the matter will be considered closed. Sincerely, BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO(t3AIRMAN UU'' I wish to have a hearing on this matted bro`ugh befor he loard of County Commissioners. I agree to pay for the legal adve sing ex se. a / • 1 • !La.,. S p it lC RECD198 �;YN,flul r t a� ,^.571 JAN 2Q 6 dt t OFFICE OF BOARD OF COUNTY COMMISSIONERS PHONE(303)356-4000. EXT-4200 P.O. BOX 758 GREELEY,GOLORADD 00632 COLORADO � January 27, 1986 Elk -Exploration, Inc. 535 Pacific Avenue San Francisco, CA 94133 Dear Sirs: Your application for a Use by Special Review permit for oil and gas production facilities in an R-1 Zone District has been _forwarded to the Board of County Commissioners without recommendation by the Planning Commission. The legal description -of the property involved is shown as part of the SW} NEi , Section 24, Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado. If you wish to be heard by the Board of County Commissioners, it will be necessary for you to indicate your request by signing the bottom of this letter and returning it to this office. Regular hearing procedures will then be followed. This includes publishing a Notice of Hearing in the legal newspaper, an expense to be paid by you. In order to proceed ss quickly ss possible, we must receive your reply by February 14, 1986. If we are not in receipt of your request by that -date, the matter will be considered closed. Sincerely, BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO CHAIRMAN I wish to have a hearing on this matter brought before the Board of County Commissioners. I agree to pay for the legal advertising expense. (. t. ' _ F,v' x:77 w a C) M a a ¢ I _. Z O 0w H w b < E zwE r W >? m 0 - �,, oQ C) S U iw �[ H d Ow m -v O) LA _ U m a O O U N O N f.y a o o m p a L- a U m - O go av y \\ <n2 X6 a o Vg -¢ z IL! , w a 0 t p N ax E E a �o u Ln cc m N 'N ]; C CC P-7 el N 4 W in v] I a° U /if ¢ ¢o rig - a a'D'S n • 396L 99d `OOBE W10 4 Sd sI=i' 1En o .yF U O p tmnui 19jigal , H w y 11iItJI hUh p@ii ! ' - '2$ O O U i "7G a Pa'' u a$ DC '- ?4 in a zlllIitel W 1* PS Phrm 3811,Julyl%S 747816 //l DOMSSTIC RETURN RECEIPT Summary of the Weld County Planning Commission Meeting January 21, 1986 Page 9 The Chairman asked the secretary to poll the members of the Planning Commission for their decision. Lynn Brown - yes; Doug Graff - yes; Don Johnson - yes; Ann Garrison - yes; Paulette Weaver - yes; Jack Holman - yes. Motion carried unanimously. CASE NUMBER: USR-718:85:65 APPLICANT: Elk Exploration, Inc. REQUEST: A Use by Special Review permit for oil and gas production facilities in an R-1 (low density) Residential Zone district LEGAL DESCRIPTION: Part of the SWk NE} , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of Greeley City Limits; south of Highway 34 Bypass and west of Weld County Road 37 APPEARANCE: Ron Jacob, Vice President, Elk Exploration, represented the applicant. This request is for one well with one storage tank. Their safety record in Weld County has been good, but there can be problems with inexperienced personnel working at the tank battery sites. He attended the City of Evans and the City of Greeley Planning Commission meeting. The Evans Planning Commission voted in favor of this request unanimously. The City of Greeley Planning Commission vote was five in favor of the request and two against the request. Tape 230 - Side 2 Elk Exploration has obtained most of Universal Gas and Oil's mineral leases and they will comply with the City of Greeley's recommendations. The compressor station, etc. , will be in the same general area as the tank battery. The Chairman called for discussion from the members of the audience. There was none. The Chairman asked Mr. Jacob if he had reviewed the recommendation, conditions, and Development Standards as outlined by the department of Planning Services staff. He stated he had and has no problem with them. The Chairman asked that reading of the staff's recommendations, the conditions, and the Development Standards be dispensed with and that they be filed with the summary as a permanent record of these proceedings. OF ,G571 EXHM/7 1 Summary of the Weld County Planning Commission Meeting January 21, 1986 Page 10 MOTION: Don Johnson moved Case Number USR-718:85:65 for Elk Exploration, Inc. , for a Use by Special Review permit for oil and gas production facilities in an R-1 (low density residential) zone district be forwarded to the Board of County Commissioners with the Planning Commission's recommendation for approval based upon the recommendations, conditions, and Development Standards as outlined by the Department of Planning Services staff and the testimony of the applicant. Motion seconded by Ann Garrison. The Chairman called for discussion from the members of the Planning Commission. Discusssion followed. Lee Morrison stated the City of Greeley does not permit drilling for oil and gas within _city limits so their standards are not pertinent. Therefore the Colorado State Oil and Gas Commission is referred to. The staff has used some of the City of Greeley's recommendations they formerly used because the land may be annexed to the City. The Chairman asked the secretary to poll the members of the Planning Commission for their decision. Lynn Brown - yes; Doug Graff - No, because he continues to be opposed to the drilling of oil wells in areas that have quite a little population centered around the drilling or tank battery sites, and in response to Mr. Jacob's statement that they do not know what occurs when fracking goes on. He does believe that the potential is high for safety hazards to the public, and until it is proven differently to him he continues to oppose wells in these areas. Don Johnson - yes; Ann Garrison - yes; Paulette Weaver - No, because she agrees substantially with Doug Graff. She feels there are some questions about safety hazards. Jack Holman - No, he agrees that this well would be in an area where it is too close to housing, churches, shopping mall, and other businesses. There could be a problem in this area, and he agrees with some of the comments made by Doug Graff. Motion is a tie vote with three voting for the motion and three voting against the motion. MOTION: Doug Graff moved the tie vote constitute denial on Case Number USR-718:85:65 for Elk Exploration, Inc. , and that the Planning Commission forward a recommendation of denial to the Board of County Commissioners. Motion seconded by Paulette Weaver. The Chairman called for discussion from the members of the Planning Commission. No further discussion followed. Summary of the Weld County Planning Commission Meeting January 21 , 1986 Page 11 The Chairman asked the secretary to poll the members of the Planning Commission for their decision. Lynn Brown - no; Doug Graff - yes; Don Johnson - no; Ann Garrison - no; Paulette Weaver - yes; Jack Holman - yes. Motion is a tie vote with three voting for the motion and three voting against the motion. MOTION: Don Johnson moved the tie vote constitute no recommendation on Case Number USR-718:85:65 for Elk Exploration, Inc. , and that the Planning Commission inform the Board of County Commissioners this case is being forwarded to them with no recommendation. Motion seconded by Lynn Brown. The Chairman called for discussion from the members of the Planning Commission. No further discussion ensued. The Chairman asked the secretary to poll the members of the Planning Commission for their decision. Lynn Brown - yes; Doug Graff - no; Don Johnson - yes; Ann Garrison - yes; Paulette Weaver - yes; Jack Holman - yes. Motion carried with five voting for the motion and one voting against the motion. CASE NUMBER: USR-713:85:64 APPLICANT: Energy Minerals Corporation REQUEST: A request -for a Use by Special Review permit for oil and gas production facilities in an R-1 (low density) Residential Zone district LEGAL DESCRIPTION: The NE} , E} NW}, W} SE} , Section 33, T6N and the Ni NE} , Section 4, T5N, all in R6SW of the 6th P.M. , Weld County, Colorado LOCATION: .25 to one mile northeast of Greeley City Limits; north of Highway 263 and west of Weld County Road 43 APPEARANCE: Larry Lilly, Landman, Energy Minerals, represented the applicant. They are trying to extract energy resources prior to any development in the area. This is a large area, but they will only be drilling five to ten wells. These tracts are located outside Greeley's Development Plan until the year 2010. None will be closer than four hundred fifty to five hundred feet from the nearest residence. This is primarily an agricultural area. Energy minerals has been drilling in the area for sixteen years and has two hundred wells in this region. Their safety record is very high. Greeley's Planning Commission recommended approval of this request unanimously. The gas will go into Pantera transmission lines in this area. Ccw BEFORE THE WELD COUNTY, COLORADO PLANNING -COMMISSION RESOLUTION OF RECOMMENDATION TO THE BOARD OF COUNTY COMMISSIONERS Moved by Don Johnson that the following resolution be introduced for passage by the Weld County Planning Commission that the applicaaT8n`'`for CASE NUMBER: USR-718:85:65 iliiLizics_LNAME: Elk Exploration, Inc. JpM2 4 \ILL,985_dujili ADDRESS: 535 Pacific Avenue, San Francisco, CA 94133' GaeeLEY, coLo. REQUEST: A Use by Special Review permit for 911 and gas production facilities in an R-1 (low -density residential) zone district LEGAL DESCRIPTION: Part of the SW}J/NE} , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of the Greeley City limits; south of Highway 34 Bypass and west of Weld County Road 37. be forwarded to the Board of County Commissioners -as a tie vote constituting no recommendation. Motion seconded by Lynn Brown. VOTE: For Passage Against Passage Lynn Brown Doug Graff Don Johnson Ann Garrison Paulette Weaver Jack Holman The Chairman declared the resolution passed and ordered that a certified copy be forwarded with the file of this case to the Board of County Commissioners for further proceedings. CERTIFICATION OF COPY I, Bobbie Good, -Recording Secretary of the Weld _County Planning Commission, do hereby certify that the above and foregoing Resolution 3a a true copy of the Resolution of the Planning Commission of Weld County, Colorado, adopted on 21st day of January and recorded in Book No. X of the proceedings of the said -Planning Commission. Dated the 22nd day of January, 1986. 1�, o10b-sa- Q\®o\ Bobbie Good Secretary C:Fet1i'.2'�""9 z4 , FXHin,7 B BEFORE THE WELD COUNTY, COLORADO PLANNING COMMISSION RESOLUTION OF RECOMMENDATION TO THE BOARD OF COUNTY COMMISSIONERS Moved by Doug Graff that the following resolution be introduced for passage by the Weld County Planning Commission that the application for: CASE NUMBER: USR-718:85:65 NAME: Elk Exploration, Inc. ADDRESS: 535 Pacific Avenue, San Francisco, CA 94133 REQUEST: A Use by Special Review permit for oil and gas production facilities in an R-1 (low density residential) zone district LEGAL DESCRIPTION: Part of the SW} , NE} , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of the Greeley City limits; south of Highway 34 Bypass and west of Weld County Road 37. that the tie vote of the Weld County Planning Commission be forwarded to the Board of County Commissioners with the Planning Commission's recommendation for denial. Motion seconded by Paulette Weaver. VOTE: For Passage Against Passage Lynn Brown Doug Graff Don Johnson Paulette Weaver Ann Garrison Jack Holman The Chairman declared the resolution a tie vote and ordered that a certified copy be forwarded with the file of this case to the Board of County Commissioners for further proceedings. CERTIFICATION OF COPY I, Bobbie Good, Recording Secretary of the Weld County Planning Commission, do hereby certify that the above and foregoing Resolution is a true copy of the Resolution of the Planning Commission of Weld County, Colorado, adopted on 21st day of January and recorded in Book No. X of the proceedings of the said Planning Commission. Dated the 22nd day of January, 1986. Bobbie Good Secretary 2 BEFORE THE WELD COUNTY, COLORADO PLANNING COMMISSION RESOLUTION OF RECOMMENDATION TO THE BOARD OF COUNTY COMMISSIONERS Moved by Don Johnson that the following resolution be introduced for passage by the Weld County Planning Commission. Be it Resolved by the Weld County Planning Commission that the application for: CASE NUMBER: USR-718:85:65 NAME: Elk Exploration, Inc. ADDRESS: 535 Pacific Avenue, San Francisco, California 94133 REQUEST: A Use by Special Review permit for oil and gas production facilities in an R-1 (low density residential) zone district LEGAL DESCRIPTION: Part of the SWi , NE} , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of the Greeley City limits; south of Highway 34 Bypass and west of Weld County Road 37. be recommended favorably to the Board of County Commissioner-s 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 Weld County Planning Commission that the applicant has shown compliance with Section 24.3 of the Weld County Zoning Ordinance as follows: - All mineral resources are fixed in location. The mineral extraction industry is, therefore, restricted in its operation to those areas where the resources lay. The subject site is zoned R-1 (low density residential) , but is not platted for residential development. The Comprehensive Plan policies encourage mineral extraction prior to development. Residential development on the subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan; - The proposal is allowed as a Use by Special Review in the R-1 (low density residential) zone district; - The Greeley Planning Commission and Evans Planning Commission have recommended no objection to this proposal. Their concerns, however, are addressed in the Development Standards; USR-718:85:65 Elk Exploration, Inc. January 21 , 1986 Page 2 - The attached Development Standards will make the proposal compatible with existing and future development of the surrounding area as permitted by the existing zoning; - No overlay districts affect the site; and - Use by Special Review Development Standards will provide adequate protection of the health, safety and welfare of the neighborhood and County. This recommendation is based, in part, upon a review of the application submitted by the applicant, other relevant information regarding the request and the responses of the referral entities which have reviewed this request. The Planning Commission's recommendation for approval is conditional upon the following: 1 . The attached Development Standards for the Use by Special Review permit be adopted and placed on the Use by Special Review plat prior to recording the plat. 2. The Use by Special Review activity shall not occur nor shall any building or electrical permits by issued on the property until the following items have been accomplished: - The Use by Special Review plat has been delivered to the Department of Planning Services office and the plat is ready to be recorded in the office of the Weld County Clerk and Recorder. - The applicant/operator shall submit evidence to the Department of Planning Services that the required emissions permit for the Air Pollution Control Division, Colorado Department of Health has been obtained. - The applicant/operator shall submit a copy of an insurance policy to the Department of Planning Services in the amount of five hundred thousand dollars ($500,000.00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out of the drilling, maintenance, production, or other work done with respect to such proposed oil and gas wells. The policy shall be written by a company authorized to do business in the State of Colorado. USR-718:85:65 Elk Exploration, Inc. January 21, 1986 Page 3 If the insurance policy lapses or becomes void for any reason whatsoever, the Use by Special Review Permit shall cease to exist until a new insurance policy is provided and filed with the Department of Planning Services. All well activity shall be shut-down and all operations and production shall be suspended and discontinued, consistent with safety considerations, until the operator provides evidence of insurance in the prescribed amount. The applicant/operator provides a list of the maximum quantities of hazardous substances expected at the site and emergency phone numbers and addresses of operators to the State Health Department, Division of Waste Management, the Weld County Emergency Response Coordinator, and the Western Hills and Eaton Fire Protection District. Evidence shall be delivered to the Department of Planning Services indicating the this has been done. Evidence of a fifty thousand dollar ($50,000.00) bond or a irrevocable letter of credit for each well shall be filed with the Department of Planning Services as required by Development Standard #11. 3. The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans Planning Commission. 4. Prior to recording, the Use by Special Review plat, it shall be amended to show the relocation of tank battery. Motion seconded by Ann Garrison. Vote: For Passage Against Passage Lynn Brown Doug Graff Don Johnson Paulette Weaver Ann Garrison Jack Holman The Chairman declared the resolution a tie vote and ordered that a certified copy be forwarded with the file of this case to the Board of County Commissioners for further proceedings. USR-718:85:65 Elk Exploration, Inc. January 21, 1986 Page 4 CERTIFICATION OF COPY I, Bobbie Good, Recording Secretary of the Weld County Planning Commission, do hereby certify that the above and foregoing Resolution is a true copy of the Resolution of the Planning Commission of Weld _County, Colorado, adopted on January 21 , 1986, and recorded in Book No. X of the proceedings of the said Planning Commission. Dated the 22nd day of January, 1986. Bobbie Good Secretary DEVELOPMENT STANDARDS Elk Exploration, Inc. USR-718:85:65 1. The Use by Special Review permit is for oil and gas production facilities in an R-1 (low density residential) zone district as submitted in the application materials on file in the Department of Planning Services and subject to the Development Standards stated hereon. 2. All tank batteries shall be designed to meet the following standards: - The tank battery cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. - A six (6) foot chain link fence with three (3) strand barbed wire top shall enclose the tank battery cluster. - All tank batteries shall be painted a wheat color as recommended by the City of Greeley. 3. Smoking shall not be permitted at any well location or tank battery location at any time, and signs indicating such prohibition shall be placed on the well site and at the tank battery location. 4. Adequate fire fighting apparatus shall be maintained on the well site at all times during drilling and production. 5. Prior to drilling, a metal sign shall be placed on the property indicating the name and telephone number of the person(s) to contact in the event of an emergency. 6. Noise standards as delineated in C.R.S. 25-12-101 et seq. , must be maintained. 7. All land within twenty-five (25) feet of any oil or gas tank containing flammable or combustible materials, or other appurtenant well production equipment shall be kept free of dry weeds, grass, or rubbish. 8. Only hydraulic electric pumps shall be used in conjunction with the oil and gas production facilities. 9. Oil and gas production facilities shall be located at least three hundred feet (300') from property lines or public rights-of-way. 10. The on site oil and gas storage shall meet the City of Greeley's Uniform Fire Code. ADC, � � -, Development Standards USR-718:85:65 Elk Exploration, Inc. Page 2 11. The applicant/operator shall provide a fifty thousand dollar ($50,000.00) performance bond or an irrevocable letter of credit to each well guaranteeing that the applicant/operator would meet the requirements of this permit and other applicable Weld County Regulations. In event of default, it would be made payable to the Weld County Board of County Commissioners for the purposes of bringing the well into compliance until the well is capped in accordance with state regulations. 12. The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans Planning Commission. 13. No permanent disposal of wastes shall be permitted on the site. 14. The drilling and production of any well shall comply with the Colorado Oil and Gas Conservation Commission regulations pertaining to oil and gas drilling rules. 15. Drilling muds can be used as an agricultural enhancement. The drilling muds must be applied and disked into sandy soils with the landowner's consent. 16. Upon cessation of the proposed use, the oil and gas production facilities shall be removed and the land shall be reclaimed to its prior use. 17. All Construction done on the property shall be in accordance with the requirements of the Weld County Building Code Ordinance. 18. The property owner or operator shall be responsible for complying with the Design Standards of Section 24.5 of the Weld County Zoning Ordinance. 19. The property owner or operator shall be responsible for complying with the Operation Standards of Section 24.6 of the Weld County Zoning Ordinance. 20. Personnel from the Weld County Health Department, Weld County Department of Planning Services, and the Western Hills and Eaton Fire Protection Districts shall be granted access onto the property at any reasonable time in order to insure the activities carried out on the property comply with the Development Standards stated hereon and all applicable Weld County Regulations. Development Standards USR-718:85:65 Elk Exploration, Inc. Page 3 21. The Use by Special Review area shall be limited to the plans shown hereon and governed by the foregoing Standards and all applicable Weld County Regulations. Any material deviations from the plans or Standards as shown or stated shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 22. The property owner or operator shall be responsible for complying with all of the foregoing Standards. Noncompliance with any of the foregoing Standards may be reason for revocation of the Permit by the Board of County Commissioners. ADDITIONAL COMMENTS USR-718:85:65 Elk Exploration, Inc. The City of Greeley and Evans Planning Commission have approved this request. A written response will be sent to the Department of Planning Services. The Department of Planning Services has not received a response from State Engineer, Division of Water Resources z..- 1, INVENTORY OF ITEMS SUBMITTED FOR CONSIDERATION Case Number (,'5R 7'/ '4/f Submitted or Prepared Prior to Hearing At Hearing 1. Application/1_7 Pages 2. Application plat(s) J_ page(s) !� 3. DPS Referral Sun!maz-y Sheer r0 4. PPS Recommendation 5. PPS Surrounding Propery Owner Mailing List / 6. DI'S Mineral Owners Mailing List 7. 3 DPS Maps Prepared by Planning Technician 8. DPS Notice of Hearing 9. DPS Case Summary Sheet 10. DPS Field Check 1./7 /Old C h.d/ /—77-216 12.�� r i,.�> � tt+1)} C74?r.CC ip:f,L9LFbC(,? 13. r FmL r. . f f �`✓ 14. 15. 16. 17. 18. 19. 20. I hereby certify that the l; 1., items identified herein were submitted to the Department of Planning Services at or prior to the scheduled Planning Commission hearing. I further cert' y that these items were, forwarded to the Clerk to the Board's office on /��/�. �y lY 19 X' . r, 1,2Lx[ s' /<' �e C t 'Current Planner STATE OF COLORADO ) COUNTY OF WELD ) !it‘ SUBSCRIBED AND SWORN TO BEFORE ME THIS DAY OF Ckcay.,„ra `l 19$(O , SEAL 1 Po\ia.'to, Aor\ RY PUBLIC // NO A MY COMMISSION EXPIRES My Commission Expires Feb. 13, 1489 / EXHIBIT INVENTORY CONTROL SHEET Case / p mac/ ��i 4:e iz Exhibit Submitted By Exhibit Description 147&A. J1-2„enviclztei Veed-ria /-4-49-2c B. T /� Y CN!/ G't/ �c f Oll7 L m ' ( `2J c. / 7/, 92,1 CA �i /J�CGt��O7 .266,J,/✓/7°tvz ?/4 E. 7�i�//ezi O � -1.42-74.,a1126(-/ F. 27m,/JA1- (6�-re/'�i i 1� 71� aA. /9Z C• 42/47-atinv /‘!r-9 .Out.CliJ..ai H. nOAY )0.4.44 021j I. J. R. L. M. N. 0. Date: January 21 , 1986 CASE NUMBER: USR-718:85:65 NAME: Elk Exploration, Inc. ADDRESS: 535 Pacific Avenue, San Francisco, CA 94133 REQUEST: A Use by Special Review permit for oil and gas production facilities in an R-1 (low density residential) zone district LEGAL DESCRIPTION: Pt. SW} , NE} of Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjecent and south of the Greeley City limits, south of Highway 34 Bypass and west of Weld County Road 37. THE DEPARTMENT OF PLANNING SERVICES 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 of the Weld County Zoning Ordinance as follows: - All mineral resources are fixed in location. The mineral extraction industry is, therefore, restricted in its operation to those areas where the resources lay. The subject site is zoned R-1 (low density residential) , but is not platted for residential development. The Comprehensive Plan policies encourage mineral extraction prior to development. Residential development on the subject site could reduce the feasibility of ever developing the minerals in question. Therefore, the proposal is consistent with the policies of the Weld County Comprehensive Plan; - The proposal is allowed as a Use by Special Review in the R-1 (low density residential) zone district; - The Greeley Planning Commission and Evans Planning Commission have recommended no objection to this proposal. Their concerns, however, are addressed in the Development Standards; - The attached Development Standards will make the proposal compatible with existing and future development of the surrounding area as permitted by the existing zoning; /♦ USR-718:85:65 Elk Exploration, Inc. January 21, 1986 Page 2 - No overlay districts affect the site; and - Use by Special Review Development Standards will provide adequate protection of the health, safety and welfare of the neighborhood and County. This recommendation is based, in part, upon a review of the application submitted 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 recommendation for approval is conditional upon the following: 1 . The attached Development Standards for the Use by Special Review permit be adopted and placed on the Use by Special Review plat prior to recording the plat. 2. The Use by Special Review activity shall not occur nor shall any building or electrical permits by issued on the property until the following items have been accomplished: - The Use by Special Review plat has been delivered to the Department of Planning Services office and the plat is ready to be recorded in the office of the Weld County Clerk and Recorder. - The applicant/operator shall submit evidence to the Department of Planning Services that the required emissions permit for the Air Pollution Control Division, Colorado Department of Health has been obtained. - The applicant/operator shall submit a copy of an insurance policy to the Department of Planning Services in the amount of five hundred thousand dollars ($500,000.00) insuring the applicant and the County against all claims or causes of action made against either or both the applicant and the County for damages to persons or property arising out of the drilling, maintenance, production, or other work done with respect to such proposed oil and gas wells. The policy shall be written by a company authorized to do business in the State of Colorado. USR-718:85:65 Elk Exploration, Inc. January 21, 1986 Page 3 If the insurance policy lapses or becomes void for any reason whatsoever, the Use by Special Review Permit shall cease to exist until a new insurance policy is provided and filed with the Department of Planning Services. All well activity shall be shut-down and all operations and production shall be suspended and discontinued, consistent with safety considerations, until the operator provides evidence of insurance in the prescribed amount. The applicant/operator provides a list of the maximum quantities of hazardous substances expected at the site and emergency phone numbers and addresses of operators to the State Health Department, Division of Waste Management, the Weld County Emergency Response Coordinator, and the Western Hills and Eaton Fire Protection District. Evidence shall be delivered to the Department of Planning Services indicating the this has been done. Evidence of a fifty thousand dollar ($50,000.00) bond or a irrevocable letter of credit for each well shall be filed with the Department of Planning Services as required by Development Standard #11 . 3. The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans Planning Commission. 4. Prior to recording, the Use by Special Review plat, it shall be amended to show the relocation of tank battery. ('2571 DEVELOPMENT STANDARDS Elk Exploration, Inc. USR-718:85:65 1. The Use by Special Review permit is for oil and gas production facilities in an R-1 (low density residential) zone district as submitted in the application materials on file in the Department of Planning Services and subject to the Development Standards stated hereon. 2. All tank batteries shall be designed to meet the following standards: - The tank battery cluster shall be bermed to contain the greatest amount of liquid that can be released from the largest tank, assuming a full tank. - A six (6) foot chain link fence with three (3) strand barbed wire top shall enclose the tank battery cluster. - All tank batteries shall be painted a wheat color as recommended by the City of Greeley. 3. Smoking shall not be permitted at any well location or tank battery location at any time, and signs indicating such prohibition shall be placed on the well site and at the tank battery location. 4. Adequate fire fighting apparatus shall be maintained on the well site at all times during drilling and production. 5. Prior to drilling, a metal sign shall be placed on the property indicating the name and telephone number of the person(s) to contact in the event of an emergency. 6. Noise standards as delineated in C.R.S. 25-12-101 et seq. , must be maintained. 7. All land within twenty-five (25) feet of any oil or gas tank containing flammable or combustible materials, or other appurtenant well production equipment shall be kept free of dry weeds, grass, or rubbish. 8. Only hydraulic electric pumps shall be used in conjunction with the oil and gas production facilities. 9. Oil and gas production facilities shall be located at least three hundred feet (300') from property lines or public rights-of-way. 10. The on site oil and gas storage shall meet the City of Greeley's Uniform Fire Code. I Development Standards USR-718:85:65 Elk Exploration, Inc. Page 2 11. The applicant/operator shall provide a fifty thousand dollar ($50,000.00) performance bond or an irrevocable letter of credit to each well guaranteeing that the applicant/operator would meet the requirements of this permit and other applicable Weld County Regulations. In event of default, it would be made payable to the Weld County Board of County Commissioners for the purposes of bringing the well into compliance until the well is capped in accordance with state regulations. 12. The tank battery shall be located 340 feet north and 340 feet east of the quarter section line as recommended by the City of Evans Planning Commission. 13. No permanent disposal of wastes shall be permitted on the site. 14. The drilling and production of any well shall comply with the Colorado Oil and Gas Conservation Commission regulations pertaining to oil and gas drilling rules. 15. Drilling muds can be used as an agricultural enhancement. The drilling muds must be applied and disked into sandy soils with the landowner's consent. 16. Upon cessation of the proposed use, the oil and gas production facilities shall be removed and the land shall be reclaimed to its prior use. 17. All Construction done on the property shall be in accordance with the requirements of the Weld County Building Code Ordinance. 18. The property owner or operator shall be responsible for complying with the Design Standards of Section 24.5 of the Weld County Zoning Ordinance. 19. The property owner or operator shall be responsible for complying with the Operation Standards of Section 24.6 of the Weld County Zoning Ordinance. 20. Personnel from the Weld County Health Department, Weld County Department of Planning Services, and the Western Hills and Eaton Fire Protection Districts shall be granted access onto the property at any reasonable time in order to insure the activities carried out on the property comply with the Development Standards stated hereon and all applicable Weld County Regulations. Development Standards USR-718:85:65 Elk Exploration, Inc. Page 3 21. The Use by Special Review area shall be limited to the plans shown hereon and governed by the foregoing Standards and all applicable Weld County Regulations. Any material deviations from the plans or Standards as shown or stated shall require the approval of an amendment of the Permit by the Weld County Planning Commission and the Board of County Commissioners before such changes from the plans or Standards are permitted. Any other changes shall be filed in the office of the Department of Planning Services. 22. The property owner or operator shall be responsible for complying with all of the foregoing Standards. Noncompliance with any of the foregoing Standards may be reason for revocation of the Permit by the Board of County Commissioners. ADDITIONAL COMMENTS USR-718:85:65 Elk Exploration, Inc. The City of Greeley and Evans Planning Commission have approved this request. A written response will be sent to the Department of Planning Services. The Department of Planning Services has not received a response from State Engineer, Division of Water Resources LAND-USE APPLICATION SUMMARY SHEET Date: January 14, 1986 CASE NUMBER: USR-718:85:65 NAME: Elk Exploration, Inc. ADDRESS 535 Pacific Avenue, San Francisco, California 94133 REQUEST: A Use by Special Review permit for oil and gas production facilities in a R-1 (low density) Zone district LEGAL DESCRIPTION: Part of the SW} NE} , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of Greeley City Limits; south of Highway 34 Bypass and west of Weld County Road 37 SIZE OF PARCEL: 40 acres, more or less POSSIBLE ISSUES SUMMARIZED FROM APPLICATION MATERIALS: The criteria for review of this proposal is listed in Section 24.3 of the Weld County Zoning Ordinance. The following referral entities have offered specific recommendations: - The Weld County Health Department; - The Weld County Office of Emergency Management. Copies of these letters are attached for your review. The Department of Planning Services has not received a referral response from the following: - State Engineer, Division of Water Resources; - City of Evans; - Greeley Soil Conservation; - City of Greeley Planning Department. NOTE: The Greeley Planning Commission will be hearing this case on January 14, 1986, and will be sending a written recommendation thereafter. --ter FIELD CHECK TILING NUMBER: USR-718:85:65 DATE OF INSPECTION: January 10, 1986 NAME: Elk Exploration, Inc. REQUEST: A Use by Special Review permit for oil and gas production facilities in an R-1 (low density) Zone district LEGAL DESCRIPTION: Part of the SW} NEI , Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado LOCATION: Adjacent and south of Greeley City Limits; south of Highway 34 Bypass and west of Weld County Road 37 LAND USE: N Farmland E Farmland and farm residence S Farmland W Farmland, residential subdivision ZONING: N Greeley City Limits E R-1 S Greeley City Limits W R-1 and Greeley City Limits COMMENTS: I noticed 3 to 4 tank batteries existing in the immediate area. BY: I✓ d ,i )Z Jc- Debbie deBesche Current Planner t u7e p • .D p z .5 iD ry • t 8 8 self:p!," a eiD. P • • .d �N,,,.;14--\, ar ri •• • 'Oat L0WE: . ,„ r.�ie"-• O [• t •m o • ...s i .... k'�.F; UI F �� /• >vx , "-Mr). •tl l e n 0 • �S• q ` • 1�11 z'r•x JtNOzs x. V ].a ••• i b pp i •\ • 2 SD ^ 2r 22 t\ 23 a fl/e$rMr z. e q Tj 1 ,.. n n 5 sy ° a ▪{�yn"�1( i al 'In. . 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Pe.{. ••�a it ' .v `+"'3-Y-:.,s rs' 'Y tom' 4- s T .. '. � I 1 FL #t.STht' '. V +^ .err a .� c .,:Ft ('t<,t: Y4 . " � `y.' q�_.'}r See M°p No. 0959- r4 Z ee ,-; •,-. = +• 1 `.7y r _p.^St 'x5 . U • Y . • ` °• + x'rS 3RY w m 22,,,,',,,,,,I, -'. c u:rw ktai 77-7 . f f ' ` tau v 3 .r : s • a t r e ,42',.. 4ro• u^ S a -7.2.74,7‹,-,c..,-.7;‘,.-<1.-c, tt' x 1 F • tYH 11t- ,•Lc `3 9-ti'S� 4` • e . " • aw r — r REFERRAL LIST APPLICANT: Elk Exploration CASE NUMBER: USR-178:85:65 SENT REFERRALS OUT: REFERRALS TO BE RECEIVED BY: January 13, 1986 NO SR NR NO SR NR County Attorney / X Western Hills Fire / Protection District ✓ X Weld County Health Dept. c/o Brian W. Newkirk / 1804 Cherry Avenue �/ R Engineering Department Greeley, CO 80631 County Extension Agent X Greeley Soil Conservation District Office of Emergency Mngmt 4302 9th Street Road Greeley, CO 80631 X State Engineer Division of Water Resources , / X Office of Emergency 1313 Sherman St. , Room 818 V Management Denver, CO 80203 State Highway Department 1420 2nd Street Greeley, CO 80631 Colorado Department of Health Water Quality Control Division 4210 East 11th Avenue Denver, CO 80220 X City of Greeley Planning Department c/o Steve Hill 919 7th Street Greeley, CO 80631 _ Tri Area Planning Commission P.O. Box 363 Frederick, CO 80530 X City of Evans c/o Galen Kane P.O. Box 59 £vans, CO 80620 X Lynn Brown Weld County Planning Commission 1700 Montview Blvd Greeley, CO 80631 NO=No Objection SR=Specific Recommendations-'% 2 NR=No Response 4Kefi ME ORAn®urti IIDcTo Planning Department Date January 8. 1986 COLORADO From Wes Potter, Health Protection Services ( 1 *7 h6 tV ry; Subject: Elk Exploration, Inc. U.S.R. 718:85:65 We have no problem with this being approved as long as the following requirements are met: 1. The volume retained by the spillage birm should be greater than the volume of the largest tank inside the birm. If this is done we would not have any problem with this pro- posal. 2. No permanent disposal of wastes will be permited on the site, other than drilling mud. 4'h-----C-,717j'\' 1-C 11 � t-,,,::,1 986 (✓ ,,nmcoss;ou Weld to. plaua'r;Q ) mmoRAn®urri Willilik To Debbie deBesshe. Planning Date January 3. 1986 COLORADO From Lea Ekman. Office of Emergency Management, / Subject: USR-718:85:65 In reference to the application of Elk Exploration, Inc. , this office has no conflicts with the request. It does, however fall under the perview of Senate Bill 172, 29-22-107 (2) (a) which requires reporting of said quantity to the local Designated Emergency Response Authority (DERA) , the waste management division of the State Health Department and the local fire department (as noted in Section 11 of the application) which is Western Hills Fire Department. As noted in the application 24-hour phone numbers are required in the event of an incident requiring emergency response. If there are any questions, please call 356-4000 extension 4250. ..rJ: 0 - 1986 Weld Co. &famine Caimmssioo F:43 :. L c /, i a € , • DEPART „ANT OF PLANNING SERVICES w " � PHONE(303)356-4000 EXT.4400 91510th STREET �[`;'� p GREELEY,COLORADO 80631 T l� p'�'°3 •^V s • COLORADO CASE NUMBER USR-718:85:65 December 23, 1985 TO WHOM IT MAY CONCERN: Enclosed is an application from Elk Exploration, Inc. for a Use by Special Review permit for oil and gas production facilities in an R-1 zone district. The parcel of land is described as Pt. of the SW} NE} of Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado. The location of the parcel of land for which this application has been submitted is adjacent and south of the Greeley city limits, south of Highway 34 Bypass and west of Weld County Road 37. This application is submitted to your office for review and recommendations. Any comments or recommendations you consider relevant to this request would be appreciated. Your prompt reply will help to facilitate the processing of the proposal and will ensure prompt consideration of your recommendations. If a response from your office is not received within fourteen (14) days of mailing from our office, it may be interpreted to mean approval by your office. If you are unable to respond within the fourteen (14) days (but wish to do so at a later date) please notify our office to that effect. Check the appropriate boxes below and return to our address listed above. Please reply by January 13, 1986, so that we may give full consideration to your recommendation. Thank you very much for your help and cooperation in this matter. 1. We have reviewed the proposal and find no conflicts with our interests. 2. A formal recommendation is under consideration and will be submitted prior to 3. )4 Please refer to the enclosed letter. // Signed:4 Agency: �) _ Date: //,11/ Debbie deBesche Current Planner C DEPARTMENT OF PLANNING SERVICES ritesti , PHONE(303)356-4000 EXT.4400 \ / 915 10th STREET \ :° 4, GREELEY,COLORADO 80631 di\.: .4- i O zit COLORADO NOTICE OF PUBLIC HEARING The Weld County Planning Commission will conduct a public hearing on January 21, 1986, at 1:30 p.m. to review a request for approval of a Use by Special Review permit for an oil and gas production facilities in an R-1 zone district from Elk Exploration, Inc. on a parcel of land described as pt. of SWI NE} of Section 24, T5N, R66W of the 6th P.M. , Weld County, Colorado, containing 40 acres, more or less. The public hearing to be held by the Weld County Planning Commission for the consideration of the above referenced request will be conducted in the Weld County Commissioners' Hearing Room, First Floor, Weld County Centennial Center, 915 Tenth Street, Greeley, Colorado. Comments or objections related to the above request should be submitted in writing to the Weld County Department of Planning Services, 915 Tenth Street, Room 342, Greeley, Colorado 80631, before the above date or presented at the public hearing on January 21, 1986. Copies of the application are available for public inspection in the Department of Planning Services, Room 342, Weld County Centennial Center, 915 Tenth Street, Greeley, Colorado, - Phone - 356-4000, Extension 4400. Jack Holman, Chairman Weld County Planning Commission To be published in the Johnstown Breeze To be published one (1) time by January 2, 1986. Received by: //, t CySc Date: r? 27 /r. ' ; - 4e iI NAMES OF u HERS OF PROPERTY WITHIN 500 FEET Please print or type NAME ADDRESS, TOWN/CITY, ASSESSOR'S PARCEL STATE AND ZIP CODE IDENTIFICATION 1/ L.E.G. Partnership 1221 8th Ave. , Greeley, CO 6209592401008 L.E.G. Partnership '' '' '' '' 6209592401009 L.E.G. Partnership " " " " 6209592401007 SEGL Associates " " " 6209592420003 Rutledge, William etal 1309 10th Ave. , Greeley, CO 6209592410059 Rutledge, William etal " " " " 6209592410060 Dayton Hudson Corp 777 Nicollet Mall 62095924100004 Minneapolis MN 55402 Horii, S. Roy and Helen S. 44721 C.R. PP 62095924300006 Wray, CO 80758 Duell Co. 26542 WCR 51 62095924000013 Greeley, CO Meyer, Jacob H. and 2925 65th Avenue 62095924100056 Harold, Co-Trustees Greeley, CO pp fl,, :O. s .t->-a ATTACHMENT TO AFFIDAVIT OF INTEREST OWNERS MINERALS AND/OR SUBSURFACE Name Address Interest William A. Rutledge, 1309 10th Avenue Full fee simple Roderic E. Kirk and Greeley, CO. 80631 interest in all John P. Watson, as surface and RKW, a partnership subsurface rights. ELK EXPLORATION, INC. 535 Pacific Avenue Lessee of the Third Floor oil and gas rights San Francisco, CA. 94133 from RKW partnership. W. G. VAN BEBBER �� PETROLEUM & MINERAL PROPERTIES ,� 5A4 METROBANK BUILDING 475 SEVENTEENTH STREET \'d\,, .. "/ DENVER COLORADO R0202 17031 2a3 3775 December 1 7 , 1985 Department of Planning Services 915 Tenth Street Greeley, Colorado 80631 RE: Use By -Special Review Application SW4NE'a Section 24, T5N-R66W Weld County, Colorado Gentlemen: Attached is a check for the application fee along with an application and other supporting documents in connection with proposed use of a portion of the captioned tract for oil and gas Production facilities. In accordance with the Procedural Guide for Use Special Review we submit the following: 1 . Statements as required in procedural guide. 2. Application on the prescribed form. • 3. Certified list of names, addresses, parcel numbers of owners of surface rights within 500 feet of the captioned property. 4. Certified list of names and addresses of mineral owners and lessees. 5. Detailed description of the proposed operation and use. 6. Use by Special Review Permit Plan Map (This includes a copy on reproducible material ) 7. Copy of the oil and gas lease and assignment. / For ELK EXPLORATION, INC, TVB:pp Enclosures/Attachments APPLICATioN USE BY SPECIAL RLV11'W Department of Planning Services, 915 Tenth Street, Cr.eIey, Colorado 80631 Phone - 356-4000 - Ext. 4400 Case I:u.nbet ---- -- _ Date Received_ Appiteatiot, Checked by— Mylar plat submitted Application Fee -Receipt Number T Recording Fee -Receipt Number -- h) 1W. c: lP1.ETED by APPLICANT: (please print or type, except for necessary signature) I (we), the undersigned, hereby request hearings before the Weld County Planning Commission and the Weld County board of County Commissioners concerning the proposed Special Review Permit of the following described unincorporated area of Weld County Colorado: 1.1:CAI. DI-:NcRIl'Tl(iN OF SPECIAL. REVIEW PERMIT AREA: SWaNEr Section 24 k 66 -_.w -- - _--_ I.FCal. DESCRIPTION ea contiguous property owned upon which Special Review Permit is proposed: ..N/A- _Section T N, R Pt•.perly Address (if available) NQt available _ i•I(i":.IYa /ONE. R-1 _-- OVERLAY ?ONES None — TtrfAl. AI:REACF: -40.0, more or Less PRtlt'(t;;F:Ii LAND USE_ Small_portion of SWaNE4 sec. 24 for drilling of Oil and Gas Well EX l:'1'l N(: LAND USE Agricultural. _ — til_RFACI' EL:F. (PROPERTY OWNERS) (IF AREA PROPOSED FOR THE USE ItY SPECIAL. REVIEW: N;u.tu: Wm. A. Rutledge, Roderic_ _ E. Kirk, John P. Watson , as RKW Partnership Address: 1309 10th Ave city Greeey — __ 71p NET_ Nome Telepi,one S __ Business Telephone U— Name: Address: City Z1 li.a..•• p i •1.-1 honea, 11..11_ 1111 . _Business Telephone s -- Name: Address: City .__ . Zip N..t.e Telephone rr_—.__ —�—� business Telephone 0-� ----- _� APPL!CAF1T (1R Attl'h(iklZl:D .AGENT (if different than above): N;t.i..':_EI.k-Exp1Qraton1 Inc. A.tdrt.s:.: 535 Pacific Ave. City San Francisco, CA Zip 94133 Ih,t.v Telephonex 303-480-9911 Business Telephone u 303-293-3775 303-330-0614 List the owner(s) and/or lessees of mineral rights on or under the subject properties of record. Name: RKW Partnershi pi mineral owner of record Address: 1309 10th Ave. ._. city Greeley Zip 80631. rime: Elk Exploration2_Inc. , Lessee (present owner of lease to Universal Oil & Gas, Inc. ) Aaaren:.:5.35Pacific. A.Ka. City San Francisco, CA Zip 94133 Wane: At1•Iter,t_ City - Zip -- I hereby depose and state under the 1•.t-nalities of perjury (hat ail statements, proposals and/or plans submitted with or contained within this application are true and correct to the best of my kr.:.wl ndee. • ) r (aRiN'lY ;.P WELD ) r i S7'All: (ti COI.(IRADO,) r.C , \ Signature: (lwrer-••rfE At thorized Agent Subscribed and sworn to before me this 1 7t y of December. 19 85 • SEAL f NOTARY PUBLIC (...JCS!/( co - 1 1 2 My et-i.-t,iissinn expires July 10, 1988 _ DESCRIPTION OF PROPOSED OPERATION AND USE 1. Proposed use: Drilling and operation of oil and gas well. 2. Need for use: Development of hydrocarbon potential. 3. Existing- use of surroundina properties: ybstly residential and agricultural. :1. Dist.,^:_`' fr.-,m _::c'sed well t~- oEL t≥: nIc u s Z w-Lt..nLi ... ..iia�.l:.�.c1•� ,� ~ ) .. er in any u�..._...._..... plc�tion of the well, the site would be used by trucks hauling oil (about 2 per month) and maintenance personnel. 6. Employees, shifts, hours: During drilling operations, approximately 5 persons will operate the drilling rig in shifts, operating 24 hours per day until the well is completed. Upon completion, one employee will occaisionally visit the well site for maintenance purposes. 7. Water source: Water hauling service and/or fire hydrant. 3. Access route to wellsite: From 37th st. , North along the West edge of the SE 1/4 of Section 24 to the Southwest corner of the intended use area and then to wellsite, all using existing roariq. 9. Vehicular traffic: During the drilling of the well, various heavy trucks (80,000 lbs. t gross wt.) will be needed 'to haul equipment and drilling fluids, etc. After completion of well, only an occaisional vehicle will be needed by maintenance personnel, and also oil trucks will be hauling out oil (about 2 per month) as in =5 above. 10. Sewacm facilities: None needed. 11. Fire protection measures: Operator of well shall provide Western Hills Fire Protection District a minimum of 4 (four) parties to contact in case of emeraencv. (Names, addresses and phone numbers of each) . All production equipment fixed at the wellsite with a source of ignition shall be placed a reasonable distance from the wellhead so as to prevent fire or explosion hazards. Smoking shall not be permitted at cr Near any of the facilites used for the production of oil or uas. Signs indicating the prohibition of smoking shall be placed on the wellsite and at the tank battery lo- cation. Fire extinguishers shall be maintained at the wellsite at all times during drilling and production. All land within twenty-five feet of any oil or gas tank containing flammable or combustible materials, or other appurtenant well production equipment shall be kept free of weeds and dry grass or rubbish. -1- • DE.. _:IPTION OF PROPOSED OPERATION Ai. USE (cont.) 12. Animal s: No animals will be involved with the proposed use. I3. Waste ::i sposal: During ;ri lin unerationS the usual slush • , pit will be needed. Said pit will be returned as near as practicable to the original appearance and contour of the land as soon as drilling oper- ations have been completed. All debris and other wastes will be re- moved from the property. Upon approval of the Weld County Health Department, drilling fluids and cuttings will be used as an enhance- ment to agricultural rroduction upon completion of the drilling tpert i ons. 14. Storm water retention -acili_ es: None needed. .may aJ... . ALL wastes or immediately following the completion of drilling operations (see item 13 above) and properly disposed of. 16. Landscaping and erosion control: The road to the wellsite will be ade- quately and properly graded to prevent erosion. A fence or other screening will be installed around the wellsite upon completion as a producing well. 17. Reclamation procedures: Upon cessation of use, the use area will be returned as near as practicable to its orginal contour and condition prior to the drilling of the well, employing the most up-to-date reclamation procedures available at such time. 18. Time table: The actual drilling of the well will take a maximum of ten days, and completion may take another 2 or 3 days. Laying of pipelines and construction of tank battery will take no longer than one week. (all of the above figures do not include unforseen circumstances which may extend the time needed to complete each project, such as inclement weather, etc.) Page 2 SUPPOR_ 3G STATEMENTS - RTx EXPLORATION, INC. Application for Use by Special Review - RKW #2 Oil and Gas well The proposal is consistent with the Weld County Comprehensive Plan and the residential zone district location. The proposal is consistent with the intent of the residential zone district and is provided for as a Use by Special Review. Compliance with Use by Special Operations and Design Standards provide adequate protection of the health, safety and welfare of the neighborhood and County. The use would be compatible with the existing surrounding land uses. Agricultural Production uses exist North, South, East and West of the subject site. The proposed use would be compatible with future development of the surrounding area as projected by the comprehensive plans of the Cities of Evans and Greeley. Use by Special Review Area is not in a floodplain or Geologically Hazardous area. No overlay districts affect the site. The noise involved with the drilling cf the well will be minimal at the distances it will be from surrounding residential structures, and also, the noise will be temporary. In view of this, Elk Exploration hereby re- quests that the Department of Planning Services waive the requirement for a noise report. AFFIDAVIT OF INTEREST ilWNER MINERALS AND/OR SUBSURFACE Application No. Subject PropertySW'.NE% Section 24, T5N, R66W .�"►':i'fl: Iii' l'i11 t) ALi) ) ss. t,c: c!l• WELD ; 'IlHE I;til;EitSlCNED, being first duly sworn, states t :. ., e best of his or her knowledge the attached list is a true and occur.,, ,• . _c of the names and :addresses of all mineral owners and lesses of mines - 1 ,.%.',:: r:; on or under the parcel of land which is the subject of the appl.ic:.,: , .c; their names appear upon the records in the Weld County Clerk and i,.: . • r,. . . ! .. Office, or trutn an ownership update from a title or abstract come ..,, . ,n attorney. C-[�Zc/(, `♦elf _ t'._ Thomas W. Van h::hlwt• hti e i.oregoing instrument was subscribed and sworn . . : L : re me this I f a .,.a v ,•1 __ n l l��:1� , :nv nand ::pct of i i era l seal. a• t'..r.Lm,ssien expires: 1m1 .I-•-• r \Notary l'ublil , I i '. i r Iti Sr , ATTACHMENT TO AFFIDAVIT OF INTEREST OWNLk MINERALS AND/OR SUBSURFACE Name Address Interest William A. Rutledge, 1309 10th Avenue Full fee simple Roderic E. Kirk and Greeley, CO. 80631 interest in all John P. Watson, as surface and RKW, a partnership subsurface rights. ELK EXPLORATION, INC. 535 Pacific Avenue Lessee of the Third Floor oil and gas rights San Francisco, CA. 941 •;,; from RKW partnership. J _ • I AFFIDAVIT OF INTEREST OWNERS SURFACE ESTAT-E I Application No. Subject Property SW`NE' of Section 24, Township 5 North, Range 66 West of the 6th P.M. , Weld County, Colorado. STATE OF COLORADO ) ) ss. • COUNTY OF WELD ) i THE UNDERSIGNED, being first duly sworn, states that co the best of his or her knowledge the attached list is a true and accurate list of the names, addresses and the corresponding Parcel Identification Number assigned by the Weld County Assessor of the owners of property (the surface estate) within • five hundred (500) feet of the property subject to the application. This list was compiled from the records of the Weld County Assessor, or an ownership update from a title or abstract company or attorney, derived from such records, or from the records of the Weld County Clerk and Recorder. The list compiled from the records of the Weld County Assessor shall have been assembled within thirty (30) days of the application submission date. 1/// C12 0( (.0 wt_2-c.� :Lee- (=i. The foregoing instrument was subscribed and sworn to before me this /,5 day of IL e- 19 ,P,l WITNESS my hand and official seal. My Commission expires: /D �0- c 7�q �lotary Public { NAMES OF uW;3ERS OF PROPERTY WITHIN 500 FEET Please print or type NAME ADDRESS, TOWN/CITY, ASSESSOR'S PARCEL STATE AND ZIP CODE IDENTIFICATION # • L.E.G. Partnership 1221 8th Ave.1 Greeley, CO 6209592401008 L.E.G. Partnership '' '' '' 6209592401009 L.E.G. Partnership " " " " 6209592401007 SELL Associates 6209592420003 Rutledge, William etal 1309 10th Ave. , Greeley, CO 6209592410059 Rutledge, William etal " " " 6209592410060 Dayton Hudson Corp 777 Nicollet Mall 62095924100004 Minneapolis MN 55402 Horii, S. Roy and Helen S. 44721 C.R. PP 62095924300006 Wray, CO 80758 Duell Co. 26542 WCR 51 62095924000013 Greeley, CO Meyer, Jacob H. and 2925 65th Avenue 62095924100056 Harold, Co-Trustees Greeley, CO : r OIL AND GAS LEASE .:.:. -z2k, ..._-_--)l) • � AGREEMENT,Made and el,lrred into Ilse: 15th day ot- _____j nuary.__. ..WILLIAM A. RUTLEDGE, R0DERIC E. KIRK and JOHN P. WATS0N, as Individuals and b as y and between of RKW, a partnership partners whose post office address le-1309..10th_Are.�.._Oraelpya CO BIIft11 ,herrbtall.r called Letsur(whether one or more)and UNIVERSAL OIL & GAS, INC. whole post office address is4OSO Youngf iel d t /CO 89033 • -, 1111L_,t herein& tat called i.essee: %ITNI:ssl'I'II.Thal she Lessor,for and In ritnsidrraUo,of Ten and rash In hand paps, till trrrlph of witch is hereby urknowl,'dµed,and site cnYenauls and u rmore pr'MaeU;6,ua,,;.[Irr,.;,,ltainr 1)I)1.1•Atti I..IN•d cud let, and by their presents dues arum. demises, leas' and let exclusively unto the said ',r,s.•s• Ihr I.,,oh hereinafter desetrin d• wlill the reclusive right for the pyrpMr of mining,rxplurnl h d.has arait.•el,druslsrd, er ds,cod whalsivver Allure Or kind,with right*of way end eaaen,vlllri fur riayhng pipe lines.een d erection of arm-tweerellog theoo vial reon to therefrom produce,save iand itake rare of said products,all that t'rlain tract of land allueted in the County of WJ1d State of___ _CI LIrilt1f .described as lulluws,to-w,i. . _ _ Township 5 North, . Ran$e 66 West 6th P.M. Section:24;Wf2NE/4 __ • 80 uw contatuutr_ .0 It is that scars,noire or Ic a. one }��r�s, ly ] 1985 nature 1. r bind isrproducevllfrom said hem lluasll edlain prl'u premisrce es sinnr a acre4agei of or*paroled therewith,or drilling twerai as tailor i e emilsiLied usl or hereinafter whatsoever vid d 1 II, at the expiration of the p1luutry term of this lease,toll or gas is not being produced on the*used localises or on uereage mou'l'd therewith but Lessee is then engaged in drilling or re-working operations thereon, then this{rase shall continue in lore,-so Inn{;Ill operations are being Cmit tilt u- ously prosecuted on the leased premises sir on acre.tgr pooled therewith:and operations shall be conu,l,•tc d to be ru11511uluusly tot seCutcd if 001 , snore than ninety (90) d41's shall elapse between the coinptelion or abandonment of one well and [lie hec,lluslog ut(operations fur the drilloog of a subsequent well. If after discovery of oil ur gas on said land or un acreage pooled therewith,the prndnec,.,n thereof should cease from any rause after the primary term, this lease shall not terminate if Lesser connneoceseddltioial drilling or re-working utrerninhs within ninety (90)days wont date of cessation of prnducthtn or from dale of completion of dry hole. If oil or gas shall be d{seove,ed and produced as a result ul such opera- bons at or after the expiration of the primary term of this lease,lids lease shall continue in force so Tong as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PA1 D-UI' LEASE. In ronsidcrutios of the duwu cash payment,Lessor agrees that Les-we shall he obligated,except as other- wise provided herein• to commence or continue any operations during the primary term. Lessee may of.ate tone or times during or after the pri- mary term surrender this lease as to all or any portion of said land and as to any strata or stratum by d'tsvcrtns to Lessor or by filing for record a release or releases,and be relieved of all obtlgali,an thereafter accruing as to the surrendered. 3. In considr,alion of the premises floe tali (.lesser covenants and agrees: 1st Ti' deliver to the rrcdil of Lessor.free of east,in the pipe line to which Lessee may cutone.I wells on s.nld land.tits equal une'eigh►h (lig)part of all Oil produced NMI saved I OW leased premises. 2nd.To ,nay Lessor eighth (1/8) of the goons proceeds eachyear,found. while the snore Is being used off payable quarterly, for the ens Lmus earl* well where gas mule is the pren►Iseb and if resod in the manufacture of gasoline r rnsull> of eighth(1/8).payable monthly at the pnsameog being tale for gas, • ;Ins.To pay Lrnur for gas'mortared (rout any opt well and used off the I a royalty of one-eighth(IlN)of the prnn•cda,at Nat hire A•s or in the ncaus•I.o•i.ru al r:L uhtor or any other Uruducl 4. Where lh of the Well,payshle lltiv at rile tn.bailing III.II r L rule. gas from a well capable uI producing gas is not sold or used, Lessee limy pay sir I,e.L'r as royally I. the royalty owners rote Dollar Per year per uvc n,valty_acre retained herruud.r,such payment or lender to ( ensuing ant', the rr.01r..bolo of 90,lays from the slate smolt well is shut in told thereafter tint or helnrrllie.t..qI„sceos.'t,d to of this oleasf e doom*:slit 1 period tuck welt is shill in. If such pas-meta tor lender is Made, It will be coneldered that gas Is bring got-Mired wsllun till*ulrsnhgt ul this Iraw. 5. Ii Laid I.rawr uwns a less Islereet in the above described land than the roller and undivided tae (nu'{udllig our silo{-Is, Ilan royally)herein ptnvldsll Ion shall beM.•stair interest ,Ikea the a whole tool ussdsvl,lyd lee. paid 1110 Lessor only in the proportion wlr.•1a Lessor's InlrtHl bears to tlri whole n. Lessee shall heal the tight to use,lice of Coll,gas,oil and water produced tin said land for I.r,,.i's operation iser,"lu,except wales train the walls tot Lessor. 1. %'hen...wormed by Lrsb.t','wiser, shall bury l.essie'a pipe Illy below plow depth. li. Nis well sl s.ill be drilled'rarer lhass VIP feet la the I •or hens now on saki gremlin with I a,i lllru 4 anent ul t.earur. U. Celiac shall par (DI damage'i allied by In•uet's nprruIiuur ..--sl,,,rrngaarin•arhl land. I0. I.m iser luau baby the right et any Ulor Ire tVIIrtve-all oneeldtlrry and fixtures blared ors saki ,.s.wises, uu hiding the right to draw and It- wr r'a'nt. er ay ned in ole ms Ollie 1l hike'Ilse lI illallt he llnod i mg loot{Il.e'Me Mild sin,steel lia■abe llisfurnislhedllwith or onto•.cuilsisliug of Ve4I change in 1o'ni.el woo-soil 1 boll reel rd,hi Iu,e l'IF''itl ''r do' •III' nod other iufuurtuli,sn 44.us loo e•xluhllsl a r plat,• r•'mill of h'a'rd title Is Le Iissue•afist made. Nu ether kind of nullee. wh,•lhrr actual or constructive..constructive.. stroll he Wilding n 'am-t' .rim oieseal .4 ,ode halt l In twin i f ,la Lesso 4",Ile,OM) as to different Ii'.51 sill.or parcels of said land shall omelette to enlarge the obligations umt clmmmu ii,ash. Sits'rights oll asses,and all Lessee's sipel.u(ons may be' c hided without regard to any Stuck dit•lalun, If all use ally part III this hearse is ussb:card.ho luau-hold owner shall be liable for alit- art ow ulttlstlnus of lull'other leasehold owner. 12. Lesser, at Its opins, is hereby given Ihr right and power at any line and f lime to time ,:, a re,•nrimg right,either belore sir after pindurlinu, as to ail or any earl of Ihr l.uul tt,•ser,hued herein and its to any one In'more of the foirmui.'n+heel' ler,to punt or unilire the lean.* hold rsla1,• and the nisstruI rstrle covered by this leader with other land,lease or hems iii the insnsdiuec s.avidly Iii Ike production of oil and µas, or sels.'rateiv for the paodtctiun of either, when it Lessee's lodgment it is necessary or advisable lu do s.,, aids hr.spective of whether entit'rtty similar to this exists will, rrsp,•rl In auch other land•lease mr leases. Likewise,units prs•violsSly formed to Include formations not producing toe)or gas, mss' be reformed Ito exclude such •prudot•ing formations. The forming or reforming of any unit -.hall he accomplished by Lessee executing and filing of record a dt'chnassult of such midiration or reformation, which declaration shall describe tie. atoll. Ally unit may include land ui IShid' a well lin. theretofore been coutpleled or apes which opera'• for drilling have there Isrftre bust a'nnea'ls. i'toducLion,drilling or re- working operations or a well shut in for watt of a market anywhere on a unit which includes all or a past of this leas.•shall be treated as if it were pasdurlloss, drilling nr reworking operations or a well shut In for want of a market umber this lease. In li.•'s of the rut allies elsewhere herein speci- fied, inchadstir shot-lit gas ruyellles, Lessor shall reeelve hn prochsetion from the unit so pouted royalties ..ells' on the port Ion of such production allocated to IIsis Iraw;such allocation shall he that proportion of the unit production that the total natal-.•r sal situ,rr;,rtes covered III/ this base and Included In Ihr unit bears to lite total s'mber of surface acres in surto tutt-I. In addition to the ture'i:nms;-Is•ssre shall II:ler the right Ill Willful', I I, or r biter all or all part of the ahoy(•dl*sertb,•d Ia51dsas Is one sun •of Ike formal iher.•u.,.l.., sills bolo,rands in the same gro.•,al area Is, ...leering moo ii ,[mn11e'ral ire 1.l* %mil plan II ti's'slnl oil or operation approved by soy g,1y,•,assn,Alai aellh(5o lit' and, from limo le. tiller, it li)a like' alaprmvdl. le. IliWhl V..-hinge or to.. ' Ale any inch plant or agreement and, his alle'l1 e•yrill, air L.,,.s'. ,.rp.lsllmnx Well pros{dulls oil this lease stein he dr/'mrd laf1rd Is. rsnfui'ns !(5 slue tertua, c 'Minot.moil pruvfaiuua o1 owls alrproved,.e.p,-oaks,•or(55111 plan)of d.•,elops,oatl or u ei...flun and, pal lu'HL,NS, all ill Nhng nod drvrioputeul requitement,' of title Lase,espresso or ltuplied, ,h..11 ha bail-.nrtl by ,• It e wills the alibiing; aid rlr,cl,.pmrnl arat"tiemenla of sorts Mau or ullreuAeul,and thin I'uxl•stall not lrnnisnle or, r,.r soon.. el., 1st. of outs Wall nr•o:ree. 'mend. In lhr rv,'st hurl s.od risue.' ell....ih,•.1 lisid.or ant• part ilu'reof, shell Ih7tnit.•r be suit il 1, l .baba:., anv ....b,u"p'r,t{ve or 11.{.n,ell , Ile%el•n,,,,ell 'r opeu,t1uu srhreelry the tar...heelmai Iilrr•t1,m is alrneclled to different pentane ell the I.,n.l a over.II I.v %dill gist,lln'm the il ,lur- Ituu ant,airs to ails p.slileu6sr Inset of haul shall,fair !III.purplllor Of r pAling the royaltlra to br Dahl 1.,'.angel t.. I es..or,Ill'regssr'1id us h.ovslug 1 beeps wordo'rd It 'he par'ocular I,-orI tub told lib nitwit lI is sllrebtr'tl and It's Ire Ally Oilier hurt mi I.,o.I..tu,l Ii.,- ,nr•all y pav111uIIIS e'be made• h,femme'. i, Lessor shall In based Ispml prudsu'tispo only as ho Nll'1 ash d. Ll'aanr Shall fUrinldlV espies.,I e•.•.Or's ersl•..•nl Lo µa1V rooper.11i'r sir Will pl an of d.n•lupinrul or °toy:Miusi awls by la•h•.ru' mid ulrprnv,•,I he shy guys ' 'lul sgeurY I/Y wsr.slung the vane• upon rrqur'bt act la•ssr.•. 1:1. ,mi eti:er.. us {mm 's ' cutcs,,snls of slut,km...Winn tog.soiliect LIP all kellIrrnl and Muir Luws,E...camel Ih.kat•hales mr IIegulteau..Anti Ills Iv air ■lull nos is. to, tell,his ivlrnit•or es part,nor Le gyve be It)'WWI'III duinagvr,for failure lo ruu,goy awn-with,if cuhu sh it►ce Is prevented hl'.III If i51s h Idlhne Is lilt'WWII ref.I'M' 'burls l.aw,Ihd,•v, Rule or Ill*guIdtIsn. I I. l.ri...t loco.I.v wall Mot+ .nod ago rya its sateen lice title too tale landshit'h•isi desrriht•d•aid ai:rra•.Ils.t the I.• -.•.-shall have the u sour al nv I *hue to us-dr,•m I.0 I rssur, by pal'nn'hl, ant' HIM Waal.II, taller err oiler► III'ers on Ufa above. Ileal'ribe'tI le...1.. tot the rvrul of delaidl of pavnarus by o I_es-,tr and be tubl.'ruied it, the rb:hIs of Ilse holler there'(, NMI lb* undersigned Lessors, for Ibellihrh.s .and Iii'-is heats.rut;*'came ant aalii:lso. hereby nut entire .lull sr•Irasr all right ul dower and lsoissraleash In Ile•prs'ntlser described herein,insofar s. ,.red right a.f dower and homestead may I in city wee aliet l lite, pWpu►'e(ur whirls Oils Iraw'is bade,as recited herein. 1 5. Sl Id su1 situ' or store of the parties hersIsabove named as Lessor fall to execute this Ica.. . It %hall us,,'-rlhrives be banding upoli all .urn macaw why d..s•te.'ul.' it as l.rs'„r. Th.. word •'I.rss,sr,"as used iA this lease, shall Hirai{ally • os Muir o l f all' the parties who eseeule I this town.as I,rs.ur. All like Pi...WOOS of tins lease'Mall he binding on the hell/,successor')and assign■of I s--our sir{ l.e.:re.IN Wi7NEhe ViiiIsll l':UF•,tide llsutruenrnl is executed as of the date first shove urine'. /4 t Zt.C-,rtrl, �.�!1LLr"P.. C. \ 41ws .i4�. 1111.I. AM A. 1tU'i'1.1;1) .E I. 55N1t ' • �..._ ., ,,IQ1B9 a'b YAT(...)Na.._I,1:;.::O[ RODER10Er KIRK LESSOR • t-�;.i;h Na-i t:y S f,, n to C� .t.e.) H 'S _. .i_i(: 1•.`, _..' . :i or...Y•� 1 1 t. I Oklahoma, Kansas. New Mexico, tt „nluy, ',1,.ntene, Colorado, Utah, COI Nii1' t}( Sd1?i.f} ._••_.......____}As. Nebraska, North I,. • ,, .•�,,,,i t whoa AChNom l'I1t,`.tl ',F 1\1'11 ttIlMIAl. IIl H)I(F ME, the undersigned, a Notary Public, in and for said County and State, on Oil, /41 day „f 3-Anuary / -1C11G.k�. 19-35._ personally P y appeared William A. Itt.rt:le,lge_Snil Roderic E. Kirk and._. John P_ Watson -� --- — , to me known to be the identical lvrsnng_____ , described in and who executed the within and foregoing instrument of writing and acknowledged to me that til.e. __. duly executed the same as their_free and voluntary act and deed for the uses and purposes therein set forth. . IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above'writtcn. • My Commission t'.xpires___. 1/�4/ .-.? .,7 /t/pc' )�. ,'t J� ri / f Notary Public. C , STATE OP._— Oklahoma, Kansas, New Mexico, Is'rnming, Montana, Colorado, Utah, COUNTY OF� }ss. Nebraska, North Did:nut, South Dakota ACKNOW'LED(;NII N t'--INDly mum, DFt-ORE ME, the undersigned, a Notary Public, in and for said County and Slate, no ,In,_, _...- day of , 19 , personally appeared _._._.._ and ---- ---- • to me known to he the identical person.-.._.... , described in and who executed the within and foregoing instrument of writing and acknowledged to me that _duly executed the same as free and voluntary act and decd for the uses and purposes therein set forth. N \WITNESS WIiEREOF, 1 have hereunto sct my hand and affixed my notarial seal the ,lay and year last above written. My Commission Expires Notary Public. Address: -- . STATE, OF_^_• ACKNOWLEDGMENT tier u.e by Corporation) COUNTY OF }ea. On this_ __day of , A.D. 19 , before me personally appeal et! ..-._.-_....... _-- --„-—__ . lo me personally known, who, being by nic duly sworn, did say that he is the-T- of and that the sr„I atlur,l t,, said instrument Is the corporate seal of said c,olp,,,arl„n and that said inruu,nent was signed and sealed in behalf of sold corpu,atr,n lay ourh,,,Uy of Its Board of llitect„rs, and said .acknowledged said instrument to 1h.- lick- art and deed of said cori>„ration. Witness my hand and seal this___•_. _dayof . A.D. 19._. Notary Public. (SEAL.) Address: ---. .-.----.. .. . My Commission expires • • -i3 i' u �` �� U a A o• °J- is 4,. u u 5 71 tr. a 0 o tJ y p -J OO G' 'L • `7 N -4: E C O O ♦, 011 KO Ua n: - O (L u `, u „ U y `a O t7 , ,.- C 3 i o u , u g g < 4 o‘6. 1d t : O Ny t- -a m • EXHIBIT TO OIL AND GAS LEASE DATED THIS 15th DAY OF January , 1985, BETWEEN WILLIAM A. RUTLEDGE, RODERIC E. KIRK and J011N P. WATSON, as LESSORS, and UNIVERSAL OIL 6 GAS, INC. , as LESSEE. • This Addendum is attached to and made part of the above referenced 0i1 and Gas Lease: • 1. Nature of this Addendum: This Addendum sets forth additional terms and conditions of the Lease between the parties and is wore specific than the attached printed form. If there is any conflict between thin Addendum and the at— tached printed form, this Addendum shall control. • 2. This lease is made and entered -into subject to that certain Oil and Gas Lease between RKW, a partnership, as Lessor, and Cody Nordell , Inc. , as Lessee, dated April 23, 1982, recorded in Book 967 at Reception. 1891500, of the Records of Weld County, Colorado, (hereinafter referred to as "Existing Lease") . Lessor represents and warrants that it has not entered into, any renewal or extension of, or amendment to, said Existing Lease which would have the effect of continuing the Existing Lease in effect beyond the time at which it would otherwise expire. This lease shall not interfere with the rights of any party under the Existing Lease and Lessee shall have no right of entry or possession for the purpose of exercising its rights hereunder during the existence of said Existing Lease. Un- less sooner terminated or longer kept in force under other provisions hereof, this lease shall remain in force for a term of one year beginning February 16, 1985, or beginning concurrent with termination of said Existing Lease for any cause, which- ever event first occurs, hereinafter called "primary term", and as long thereafter as operations, as defined in the printed lease, are conducted upon said land. 3. Nature of Surface Interests: The lands being leased herein are de— velopmental lands by reason of their inclusion within, or proximity to, the Cities of Greeley and Evans in the State of Colorado. As a result thereof, said lands have either been subdivided or may be in the future for more intensive, urban use. It is the intention of the parties to preserve and protect those developmental rights of Lessor by recognizing that the Mineral Lessee cannot have unlimited rights to the use of the surface but rather must conduct its operations in a manner to avoid unnecessary damage or interference with such developmental surface use. 4. Ancillary Rights: This Lease includes the granting to Lessee of necessary rights incidental to the exploration and productli)n of oil and gas but it is also expressly concerned with the protection of the surface interest and the water rights of Lessors. Accordingly, ancillary rights shall be limited to only those as are necessary such as a pipeline and installation of necessary power lines. Any above ground facilities shall be kept to the absolute minimum and if there are alternatives to the location of any such facilities, they shall be lo— • cated where they cause the lease damage to Lessor's surface interests. 5. The following Provisions Shall Control Lessee's Activities on the Subject Property: a. Minimum Use of Surface: Under any circa stance, Lessee shall make all reasonable efforts to use only the minimum amount necessary of Lessor's property in its operations so as to minimize any damage to, or interference with, Lessor's property. The maximum acreage affected shall be no wore than three (3) acres per well site, provided however, if more than one well site is located on a drilling site as provided in subparagraph b. hereof, the affected acreage may be increased up to 6 acres. "Affected acreage" shall include the well site, any roads installed, areas for pipelines and utilities, tank battereis and any other use of the property. b. Location of Facilities; Approval of Lessor: Facilities shall generally be located so as to minimize damage or interference with Lessor's pro- perty, including due consideration for existing or planned urban or developmental use of the surface. Lessee shall consult with Lessors prior to the proposed loca- tion of any exploration, well site or facility related to this Lease and Lessee Page 1 of Addendum shall not conduct any activities on the subject property without the prior written approval of Lessors as to the location of such activities. Lessor shall not with— hold such approval if the proposed location avoids unreasonable d.nu:I;e or inter- ference with the subject property and its development, and so long as any such location is consistent with the other terms hereof. c. Establishing Drilling Location: Lessor may specify an acceptable location on the leased premises for a drilling site in order to minimize disruption of the planned surface usage. If reasonable practicable for said purpose on the premises and if not in violation of the spacing or other requirements of the Colorado Oil and Gas Commission, Lessee shall use such specified drilling site. If such specified location does violate the rules of said Commission or is not reasonable for the development of the premises for the Lease purposes, the parties shall agree as to another location consistent with the terms hereof. d. Distance from Established Improvements: Any drilling site shall not be nearer than 300 feet to improvements on the leased proiAises without the writ- ten consent of Lessors. The term "improvements" shall include all buildings, irri- gation facilities and other permanent structures on the property. e. Above Ground Facilities: To the extent reasonably possible, Lessee shall minimize the installation of above ground facilities for producing wells. In addition, any motors shall be electric only and all tankage shall be of low profile. All above ground facilities shall be appropriately screened by Lessee with a ten (10) foot semi-opaque screening or other fencing approved by Lessor. f. Pipelines: All pipelines shall be located to meet as many of the following criteria as is reasonable possible: Along or near lot lines; within dedicated utility easements or roadways; and as far from established improvements as reasonable possible. Further, pipelines shall be buried leneath plow depth and water packed upon installation. In excavating, the soil shall be separated and then returned back in the same order and leveled, with topsoil on top. No pipeline shall be permitted which serves any well not located on the leased premises, unless the leased premises are unitized with such well. g. Utilities: Utilities reasonably necessary for the production of oil and gas shall be placed underground, unless the Lessor otherwise agrees. Further, the same shall be located and installed upon the sane criteria and in the same manner as is provided for pipelines. h. Roadways: Whenever reasonably possible, Lessee shall use estab- lished or planned roadways on the premises and avoid damage ho the subject property. Should it be reasonable required that Lessee establish its own roadway, then the same shall be located consistent with die terms of this Addendum in order to minimize interference with the surface usage and avoid unreasonable damage consistent with the other terms' hereof. 6. Damages: Bonuses and rentals paid or promised to be paid are consider- ations solely for the privilege of leasing and not compensation in any way for the surface use of the leased premises. In addition to crop damage, Lessee shall pay and be responsible to Lessors for all damages to the leased premises and for the right to use the same by reason of its exploration and production activities in accordance with the following terms: a. Restoration: Upon completion of any activity by Lessee, the leased premises shall be restored to its original condition as near as is reasonably practicable. If a well site is drilled, all matters brought upon the premises and not required for production shall be removed within a reasonable time, including any and all concrete, betonite, sludge pits, etc. , and not just buried. Upon completion of all activities, the facilities of Lessee shall be completely removed from the premises and the same restored as above provided. b. Payments Prior to Activity: Prior to drilling any well, Lessee shall pay Lessor $1,000.00 per acre for the drilling or well site, with a minimum • Page 2 of Addendum of three (3) acres. In addition, and at the same time, Lessee per acre for the same acreage with a bank in Greeley, Colorado or a other ll p osit 2000.00 escrow ac- ceptable to Lessors to be held by such escrow agent for payment to Lessor for any additional damages caused by Lessee's activities and as security for restoration of the premises if the well is a dry hole. If the well is such a dry hole and Lessee has timely and properly restored the premises, Lessee can make written demand upon Lessor for release of the escrow monies to Lessee, with a copy to the escrow agent. Unless Lessor notifies both Lessee and the escrow agent in writing of any objection to payment of the funds to Lessee within thirty (30) days of Lessor's receipt of the notice from Lessee, excrow agent may pay said funds to Lessee. If there are addi— tional damages or Lessor believes Lessee has not adequately or timely restored the premises, Lessor may make a written demand for payment to Lessee, with a copy to the escrow agent . Unless Lessee objects in writing to Lessor:; and escrow agent that the demand is excessive within twenty (20) days of Lessor's demand, escrow agent shall pay the amount to Lessors. In the event of timely objection by Lessee, each party shall appoint one arbitrator to assess the damages, and the two arbitrators so ap- pointed shall appoint a third. A decision of the majority of said arbitrators. as to the dollar amount of additional damages shall be binding on the parties hereto. Any such arbitrator selected shall be reasonably familiar with the values of the property or damages involved. If the damages are determined to he in excess of the amount deposited in escrow, the Lessee shall be liable for said excess and shall pay the same immediately upon determination. c. Payments if Producing-well: If the well is not a dry hole and the Lessee's facilities are left in place for production proposes , Lessee shall pay additional damages for affecting Lessor's property as follows: a gross damage figure shall be determined by multiplying the per acre market value of the leased property affected times the acres affected times the interest in the property used by Lessee. The term "interest in the property" shall be expressed in a percentage. For example, the well site and surface area used for a producing well, including a roadway, shall be deemed a 100% interest in the property. On the other hand, the necessary right— of—way for underground pipeline or utilities shall be deea, d a 50% interest in the property. Until February 15, 1986, the per acre value of the leased property shall be deemed to be $15,000.00 for these purposes. Thereafter, said value shall be adjusted to reflect the fair market value of the leased property. After so deter- mining the gross damage figure, the $1,000.00 per acre paid pursuant to subpara- graph b. above shall be subtracted to determine a net damage figure. Lessee shall then, at its option, pay Lessor for the same under either .,f the following alterna- tives: (i) said net damage figure in total, or with Lessor 's consent , over an es- tablished time period, or (ii) 1 .25% of said net damage fiwire 'per month for each month that the Lessee's facilities are in place on the leased property. d. Additional Damages: The provisions for payme t in case of a producing well are compensation solely for the use of or da :age to the interest in • the subject property and is not intended to cover any other damaeen to Lessor's property, such as damages to crops, improvements or otherwise , which shall remain the liability of Lessee to immediately pay. 7. Providin of Information: At Lessor's request , Lessee shall provide Lessors with all geological information obtained from Lessee 's drilling and explor- ation upon the leased premises free of charge. 8. Limitations on Unitization and Pooling: Any unitization, pool or • combination shall be in accordance with established rules and regulations of the Colorado Oil and Cas Commission and the same will not be dcccine: tal to Lessor sharing in the production from the applicable well. 9. Limitation on Shut-in Provision: Notwithstanding the terms of the printed form to which this exhibit is attached, if a well is drilled which is capa- ble of producing gas and the same is not sold or used for a period of six (6) months, Lessee shrill pay or tender as royalty an amount equal to $ Iud.OU per acre of the leased premises on or before the next anniversary date of ibis Lease after the ex- piration of said six (6) month period. Upon payment of such amount. , this Lease shall be held as a producing property under paragraph 2 of the printed Lease form for an additional year, but no longer. If there is no actual production before the end of that additional year, this Lease shall terminate unless capable of extension in accordance with other terms hereof. • Page 3 of Addendum ^ra 10. Access for Drilling: If a well is drilled on the leased premises, Lessee shall limit its access to the well site only from the south property line or at the southwest or southeast corners of the leased premises. Lessee shall not have access to or from that part of the leased premises which are within the City of Greeley. 11. Drilling Commitment: It is expressly aeret:d between Lessor and LeS3Q0, that in the event Lessee does not common.-o the drilling or completion of a well on this Lease or on lands pooled therewith during the primary term hereof, and diligently test the Niobrara and Codell or "J" Sand Formations, then and in that event. Lessee shall promptly rt..i.luqui sh all interest in this lease and file a release thergof. However, if no well is commenced as provided above, then on or before the expiration of the primary term hereof, Lessee may pay to Lessor the sum of $40.00 per acre for each acre covered by this Lease and extend the primary term for one (1) additional year. Upon payment of such sum, Lessor agrees to execute a ecorJible instrument that will accomplish such extension; provided, however, if Lessee is prevented from commencing operations for a well as provided above due to government rule or regulation or other circumstance beyond the control of Lessee, then and in that event, this lease may be extended fur ninety (90) days beyond its initial primary term without further payment upon Lessee notifying Lessor in writing of such circumstance and of such ninety (90) day extension. • 12. Notwithstanding anything contained herein to the contrary, wherever the figure one-eighth (1/8) appears in this Lease o. royalty, said 1/8 shall be changed to eighteen per cent (18X) , 13. Location of Certain Facilities: If there is production from the well on the leased premises and if Lessor so requests, Lessee shall place tanks and separators in area of the southwest corner of the leased premises consistent with governmental rules or regulations. 14. Assioability: Notwithstanding the provllon::. of paragraph 11 of the printed form of this lease, it is agreed that an ail;uiiuent of the Lease in whole or in part will not be effective without tIn writttn permission of Lessor. However, such permission shall under no circumt .,nee be denied or unreasonably withheld. No permission shall be required •u1 the provisions hereof shall not apply to an assignment made to Thomas C. 1)orouli Trust. UNIVERSAL OIL &• By: a es 9. J nes, President �h Tiuf�11`^ Ct /•l rCt •ir WILLIAM A., UTLi:dt;L, individually RODERI . E. KIRK, individually i ) (� e, JO11N'P. WATSON, Individually o4 � ��/ Je I E t• B M 77 a EE E Ia 2 rn - a �----r .! 0.3 3. 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