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Home My WebLink About950676.tiffWATER DISPOSAL AGREEMENT THIS AGREEMENT ("Agreement") is made this 14th day of September, 1993, by and between BASIN OPERATING COMPANY ("Basin") of 370 - 17th Street, Suite 1800, Denver, Colorado 80202, and LAURENCE H. RIEDER FAMILY TRUST, MARY ALICE RIEDER AND LAURENCE J. RIEDER (Lessors) of 3715 Weld County Road #7, Erie, Colorado 80516. WHEREAS Lessors are the owners of the surface of the NW/4SE/4 of Section 3, Township 1 North, Range 68 West, 6th P.M., Weld County, Colorado (the "Subject Property"); WHEREAS, Basin desires to utilize the existing UPRR PAN AM 43 /B/ No. 11 Well (the "Subject Well") located approximately 2470 feet from the South line and 2240 feet from the East line of Section 3, Township 1 North, Range 68 West, 6th P.M. for sub -surface disposal of produced water from the drilling or operation of oil and gas wells operated by Basin; and WHEREAS, Basin has applied for all requisite approvals from the Oil and Gas Conservation Commission of the State of Colorado for operation of the Subject Well as a water disposal well; NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and conditional on Basin receiving approval of the Oil and Gas Conservation Commission of the State of Colorado to operate the Subject Well as a water disposal well, the parties agree as follows: 1. Lessors leases unto Basin the Subject Well and the existing access road, fifteen feet (15') wide, more or less, to the Subject Well, all as further shown on Exhibit "A", as well as a right of ingress and egress to and over the Subject Property to the Subject Well. 2. Lessors further grants and conveys to Basin an easement and right-of-way for the purpose of construction, installation and maintenance of one or more pipelines by which Basin will convey water to the Subject Well from the Water Station Site, which right-of-way shall be forty feet (40') in width during construction, and twelve feet (12') in width after construction. The length and location of the right-of-way for pipelines shall be in accordance with Exhibit "A". 3. The method and manner of injection, the amount and quality of water injected in the Subject Well, as well as the source thereof, and the formation or other zone into which the water is to be injected shall be within Basin's sole control and discretion; provided, however (1) Basin agrees to limit liquids injected to produced water from the drilling or operation of oil or gas wells operated by Basin; and (2) Basin further agrees that the surface injection pressure as measured at the outlet of Basin's compressors on the Water Station Site shall not exceed 1200 PSI. 950676 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 11 September 14, 1993 Page 2 It is anticipated that disposal shall be into the Sussex and Shannon Formations between 4708 - 4738 feet and 5164 - 5200 feet sub -surface under the Subject Property. 4. contemporaneous with execution of this Agreement, or on Basin receiving final approval of its application before the Oil and Gas Conservation Commission, whichever is the later, Basin shall pay Lessors $1,000.00 in full payment of all surface damages, including construction of the Water Station Site, installation of all pipelines to be installed by Basin to the Subject Well, and for the continued and future use of the surface of the Subject Property for operation of the Subject Well as a water disposal site. In addition, Basin shall pay Lessors $0.04 (U.S.) for each barrel (42 U.S. gallons) of water liquids disposed of in the Subject Well, which payment shall be made on a monthly basis commencing no later than sixty (60) days following initial disposal of water in the Subject Well. Any payment for water disposed shall be accompanied by a statement from Basin specifying the dates and total amounts of water disposed of in the Subject Well. 5. This Agreement and the rights and obligations hereunder shall be effective as of the above date or on Basin receiving its approval from the Oil and Gas Conservation Commission, whichever is the later, and shall continue for so long as Basin continues to utilize the Subject Well as a disposal site, but not to exceed ten (10) years from the date first above written. Thereafter, Basin shall have the opportunity to extend the term for an additional period of ten (10) years if mutually agreed upon by Lessors. At such time as Basin desires to abandon the Subject Well, it shall plug and abandon the well in accordance with governmental requirements and reclaim the surface of the Subject Property as required by law. For purposes of this Paragraph, Basin shall be deemed to have conclusively abandoned the Subject Well if Basin voluntarily ceases to utilize the Subject Well for water disposal for a continuous period of 365 days. 6. Basin shall have the right, up to 180 days following termination of this Agreement, to enter upon the Subject Property to remove the equipment or personal property of Basin attendant to the Subject Well, or used or obtained in connection therewith. 7. Basin represents that it has applied for all necessary governmental permits and has in effect all requisite performance bonds to qualify it to operate the Subject Well as a drilling water disposal well. Basin agrees to indemnify and hold Lessors harmless from any and all claims of whatever sort or nature pertaining to its operation of the Subject Well as a drilling water disposal well including, but no limited to, claims of environmental damage due to surface spillage or the underground excursion of contaminated fluids. 9506'76 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 11 September 14, 1993 Page 3 8. Lessors hereby warrants to Basin, its successors and assigns, that at the time of the execution of this Agreement, Lessors have good title to the Subject Property in fee simple, and has full power and lawful authority to grant, bargain, sell and convey the interests and privileges granted herein, free and clear from all claims, liens, or encumbrances, of whatever kind or nature, and Lessors covenants and agrees to defend the interests granted herein against all and every person or persons claiming the whole or any part of the Subject Property. 9. This Agreement shall be binding upon and shall inure to the benefit of the respective parties, their respective heirs, personal representatives, successors and assigns; provided, however, Basin shall have the right to assign this Agreement in whole or in part, only on obtaining the prior written consent of Lessors. 10. Basin will use its best efforts to provide Lessors and Lessor's surface tenants with advance notice of Basin's entry upon the Subject Property for purposes other than normal water hauling, equipment replacement or maintenance, or monitoring or inspection activities. 11. Lessors agree to indemnify and hold Basin harmless from all claims, demands, liability and actions asserted against Basin by any surface tenant or occupant of the Subject Property, arising out of Basin's operations on the SubjectProperty or for damages to growing crops thereon asserted by any such other occupant or surface tenant. Lessors may allocate the payments made hereunder with any surface tenant or occupant as they shall mutually determine themselves, and Basin shall have no liability therefore. WHEREFORE, this Agreement has been entered into as of the day and date first above written. BAS INVOPERATING COtjPANY By: Dan L. Schwartz Vice President -L 950676 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 11 September 14, 1993 Page 4 LAURENCE H. RIEDER FAMILY TRUST Mary A ce Rieder By: STATE OF COLORADO ) 444 ss. NTY OF DENVER ) 01/14 The foregoing instrument was acknowledged before me this d/ day of 1993, by Dan L. Schwartz, Vice President -Land of BASIN OPERATING COMPANY. Laurence J. Ried r' ,& Witness my hand and official seal. My Commission Expires: STATE OF COLORADO ) COUNTY OF WELD The foregoing instrument was acknowledged before me this ) /// day 1993, by Mary Alice Rieder, Trustee of the LAURENCE H. FAMILY TRUST. 9r' N ary Public SS. Witness my hand and official seal. My Commission Expires: 1c -► - 73 off �'"PZn�Z 950676 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 11 September 14, 1993 Page 5 STATE OF COLORADO ) COUNTY OF WELD SS. i ice, - The foregoing instrument was acknowledged before me this day of'-�TM c, 1993, by MARY ALICE RIEDER. Witness my hand and official seal. My Commission Expires: 10-/-,3 STATE OF COLORADO ) ) COUNTY OF WELD ss. The foregoing instrument was acknowledged before me this 27 day of 1993, by LAURENCE J. RIEDER. Witness my hand and official seal. My Commission Expires:Jo -I -`i3 950676 ATTACHMENT VI 100' oil & gas separator oil tank 40' water tank 40' siphon suction tact," oil m skim tank truck turn around area loading valve pump skid dog house - lease road proposed flow line FUTURA HORSE VILLAGE TANK BATTERY Ti N,R68W Sec. 3: NWSE Weld County, CO UPRR 43 B No. 11 well 950676 WATER DISPOSAL AGREEMENT THIS AGREEMENT ("Agreement") is made this 12th day of July, 1993, by and between BASIN OPERATING COMPANY ("Basin") of 370 - 17th Street, Suite 1800, Denver, Colorado 80202, and CHRISAND INVESTMENT CORP. (Lessor) of 5720 North Washington, Denver, Colorado 80216. WHEREAS Lessor is the owner of the surface of the SW/4NE/4 of Section 3, Township 1 North, Range 68 West, 6th P.M., Weld County, Colorado (the "Subject Property"); WHEREAS, Basin desires to utilize the existing FUTURA HORSE VILLAGE 41-3 #2 well (the "Subject Well") located approximately 2490 feet from the North line and 2390 feet from the East line of Section 3, Township 1 North, Range 68 West, 6th P.M. for sub -surface disposal of produced water from the drilling or operation of oil and gas wells operated by Basin; and WHEREAS, Basin has applied for all requisite approvals from the Oil and Gas Conservation Commission of the State of Colorado for operation of the Subject Well as a water disposal well; NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and conditional on Basin receiving approval of the Oil and Gas Conservation Commission of the State of Colorado to operate the Subject Well as a water disposal well, the parties agree as follows: 1. Lessor hereby leases unto Basin that portion of the Subject Property identified on Exhibit "A", being a rectangular tract eighty feet (80') by one hundred feet (100') for a water disposal station ("Water Station Site"), including a right of ingress and egress to and over the Subject Property to such site. 2. Lessor further leases unto Basin the Subject Well and the existing access road, fifteen feet (15') wide, more or less, to the Subject Well, all as further shown on Exhibit "A", as well as a right of ingress and egress to and over the Subject Property to the Subject Well. 3. Lessor further grants and conveys to Basin an easement and right-of-way for the purpose of construction, installation and maintenance of one or more pipelines by which Basin will convey water to the Subject Well from the Water Station Site, which right-of-way shall be forty feet (40') in width during construction, and twelve feet (12') in width after construction. The length and location of the right-of-way for pipelines shall be in accordance with Exhibit "A". 4. The method and manner of injection, the amount and quality of water injected in the Subject Well, as well as the source thereof, and the formation or other zone into which the water is to be injected shall be 950676 Basin Operating Company Water Disposal Agreement FUTURA HORSE VILLAGE 41-3 (2) July 12, 1993 Page 2 within Basin's sole control and discretion; provided, however (1) Basin agrees to limit liquids injected to produced water from the drilling or operation of oil or gas wells operated by Basin; and (2) Basin further agrees that the surface injection pressure as measured at the outlet of Basin's compressors on the Water Station Site shall not exceed 1200 PSI. It is anticipated that disposal shall be into the Sussex and Shannon Formations between 4708 and 4738 feet (Sussex) 5148 and 5164 feet (Shannon) sub -surface under the Subject Property. 5. Contemporaneous with execution of this Agreement, or on Basin receiving final approval of its application before the Oil and Gas Conservation Commission, whichever is the later, Basin shall pay Lessor � 5 -C-�-. in full payment of all surface damages, including construction of the Water Station Site, installation of all pipelines to be installed by Basin to the Subject Well, and for the continued and future use of the surface of the Subject Property for operation of the Subject Well as a water disposal site. In addition, Basin shall pay Lessor $0.04 (U.S.) for each barrel (42 U.S. gallons) of water liquids disposed of in the Subject Well, which payment shall be made on a monthly basis commencing no later than sixty (60) days following initial disposal of water in the Subject Well. Any payment for water disposed shall be accompanied by a statement from Basin specifying the dates and total amounts of water disposed of in the Subject Well. 6. This Agreement and the rights and obligations hereunder shall be effective as of the above date or on Basin receiving its approval from the Oil and Gas Conservation Commission, whichever is the later, and shall continue for so long as Basin continues to utilize the Subject Well as a disposal site, but not to exceed ten (10) years from the date first above written. Thereafter, Basin shall have the opportunity to extend the term for an additional period of ten (10) years if mutually agreed upon by Lessor. At such time as Basin desires to abandon the Subject Well, it shall plug and abandon the well in accordance with governmental requirements and reclaim the surface of the Subject Property as required by law. For purposes of this Paragraph, Basin shall be deemed to have conclusively abandoned the Subject Well if Basin voluntarily ceases to utilize the Subject Well for water disposal for a continuous period of 365 days. 7. Basin shall have the right, up to 180 days following termination of this Agreement, to enter upon the Subject Property to remove the equipment or personal property of Basin attendant to the Subject Well, or used or obtained in connection therewith. 8. Basin represents that it has applied for all necessary governmental permits and has in effect all requisite performance bonds to qualify it to operate the Subject Well as a drilling water disposal well. Basin agrees to indemnify and hold Lessor harmless from any and all claims of whatever sort or nature pertaining to its operation of the Subject Well as a 950676 Basin Operating Company water Disposal Agreement FUTURA HORSE VILLAGE 41-3 (2) July 12, 1993 Page 3 drilling water disposal well including, but no limited to, claims of environmental damage due to surface spillage or the underground excursion of contaminated fluids. 9. Lessor hereby warrants to Basin, its successors and assigns, that at the time of the execution of this Agreement, Lessor has good title to the Subject Property in fee simple, and has full power and lawful authority to grant, bargain, sell and convey the interests and privileges granted herein, free and clear from all claims, liens, or encumbrances, of whatever kind or nature, and Lessor covenants and agrees to defend the interests granted herein against all and every person or persons claiming the whole or any part of the Subject Property. 10. This Agreement shall be binding upon and shall inure to the benefit of the respective parties, their respective heirs, personal representatives, successors and assigns; provided, however, Basin shall have the right to assign this Agreement in whole or in part, only on obtaining the prior written consent of Lessor. 11. Basin will use its best efforts to provide Lessor and Lessor's surface tenants with advance notice of Basin's entry upon the Subject Property for purposes other than normal water hauling, equipment replacement or maintenance, or monitoring or inspection activities. WHEREFORE, this Agreement has been entered into as of the day and date first above written. BASIN OPERATING COMPAN By: nr Dan L. Schwartz Vice President -Land CHRISAND INVESTMENT CORP. By:. 4,1 �QJ ��Qs curer` 950675 Basin Operating Company Water Dispo�.1 Agreement FUTURA HORSE VILLAGE 41-3 (2) July 12, 1993 Page 4 STATE OF COLORADO ) TY OF DENVER ) SS. The foregoing instrument was acknowledged before me this jW_dt.' day of / / 1993, by Dan L. Schwartz, Vice President -Land of BASIN OPERATING COMPANY. " Witness my hand and official seal. My MY COMMISSIOIV1EXPIRES JUNE 28,1994 STATE OF COLORADO ) COUNTY OF WELD SS. „ /LIG-1-<— Not ry Public The foregoing^instr/u'ment was acknowll/LLe�dged��nnbefore I 'me'this /7 day of , 1993, by J. �i.1)e/JOCA , ch-g, S M9/1L/�dELiR of CHRISAND `VEST SENT CORP. Witness my hand and official seal. / My Commission Expires: / A 61(O 930676 WATER DISPOSAL AGREEMENT THIS AGREEMENT ("Agreement") is made this ,2 (day of January, 1993, by and between BASIN OPERATING COMPANY ("Basin") of 370 - 17th Street, Suite 1800, Denver, Colorado 80202, and LAURENCE H. RIEDER FAMILY TRUST, MARY ALICE RIEDER AND LAURENCE J. RIEDER (Lessors) of 3715 Weld County Road #7, Erie, Colorado 80516. WHEREAS Lessors are the owners of the surface of the NE/4SW/4 of Section 3, Township 1 North, Range 68 West, 6th P.M., Weld County, Colorado (the "Subject Property"); WHEREAS, Basin desires to utilize the existing UPRR PAN AM 43 /B/ No. 1 Well (the "Subject Well") located approximately 1980 feet from the South line and 1980 feet from the West line of Section 3, Township 1 North, Range 68 West, 6th P.M. for sub -surface disposal of produced water from the drilling or operation of oil and gas wells operated by Basin; and WHEREAS, Basin has applied for all requisite approvals from the Oil and Gas Conservation Commission of the State of Colorado for operation of the Subject Well as a water disposal well; NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and conditional on Basin receiving approval of the Oil and Gas Conservation Commission of the State of Colorado to operate the Subject Well as a water disposal well, the parties agree as follows: 1. Lessors hereby leases unto Basin that portion of the Subject Property identified on Exhibit "A", being a rectangular tract eighty feet (80') by one hundred feet (100') for a water disposal station ("Water Station Site"), including a right of ingress and egress to and over the Subject Property to such site. 2. Lessors further leases unto Basin the Subject Well and the existing access road, fifteen feet (15') wide, more or less, to the Subject Well, all as further shown on Exhibit "A", as well as a right of ingress and egress to and over the Subject Property to the Subject Well. 3. Lessors further grants and conveys to Basin an easement and right-of-way for the purpose of construction, installation and maintenance of one or more pipelines by which Basin will convey water to the Subject Well from the Water Station Site, which right-of-way shall be forty feet (40') in width during construction, and twelve feet (12') in width after construction. The length and location of the right-of-way for pipelines. shall be in accordance with Exhibit "A". 4. The method and manner of injection, the amount and quality of water injected in the Subject Well, as well as the source thereof, and the 950675 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 1 January 21, 1993 Page 2 formation or other zone into which the water is to be injected shall be within Basin's sole control and discretion; provided, however (1) Basin agrees to limit liquids injected to produced water from the drilling or operation of oil or gas wells operated by Basin; and (2) Basin further agrees that the surface injection pressure as measured at the outlet of Basin's compressors on the Water Station Site shall not exceed 1200 PSI. It is anticipated that disposal shall be into the Sussex Formation between 4674 and 4738 feet sub -surface under the Subject Property. 5. Contemporaneous with execution of this Agreement, or on Basin receiving final approval of its application before the Oil and Gas Conserva�n Commission, whichever is the later, Basin shall pay Lessors $221727:0 -in full payment of all surface damages, including construction of the Water Station Site, installation of all pipelines to be installed by Basin to the Subject Well, and for the continued and future use of the surface of the Subject Property for operation of the Subject Well as a water disposal site. In addition, Basin shall pay Lessors $0.04 (U.S.) for each barrel (42 U.S. gallons) of water liquids disposed of in the Subject Well, which payment shall be made on a monthly basis commencing no later than sixty (60) days following initial disposal of water in the Subject Well. Any payment for water disposed shall be accompanied by a statement from Basin specifying the dates and total amounts of water disposed of in the Subject Well. 6. This Agreement and the rights and obligations hereunder shall be effective as of the above date or on Basin receiving its approval from the Oil and Gas Conservation Commission, whichever is the later, and shall continue for so long as Basin continues to utilize the Subject Well as a disposal site, but not to exceed ten (10) years from the date first above written. Thereafter, Basin shall have the opportunity to extend the term for an additional period of ten (10) years if mutually agreed upon by Lessors. At such time as Basin desires to abandon the Subject Well, it shall plug and abandon the well in accordance with governmental requirements and reclaim the surface of the Subject Property as required by law. For purposes of this Paragraph, Basin shall be deemed to have conclusively abandoned the Subject Well if Basin voluntarily ceases to utilize the Subject Well for water disposal for a continuous period of 365 days. 7. Basin shall have the right, up to 180 days following termination of this Agreement, to enter upon the Subject Property to remove the equipment or personal property of Basin attendant to the Subject Well, or used or obtained in connection therewith. 8. Basin represents that it has applied for all necessary governmental. permits and has in effect all requisite performance bonds to qualify it to operate the Subject Well as a drilling water disposal well. Basin agrees to indemnify and hold Lessors harmless from any and all claims of whatever sort or nature pertaining to its operation of the Subject Well as a 950675 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 1 January 21, 1993 Page 3 drilling water disposal well including, but no limited to, claims of environmental damage due to surface spillage or the underground excursion of contaminated fluids. 9. Lessors hereby warrants to Basin, its successors and assigns, that at the time of the execution of this Agreement, Lessors have good title to the Subject Property in fee simple, and has full power and lawful authority to grant, bargain, sell and convey the interests and privileges granted herein, free and clear from all claims, liens, or encumbrances, of whatever kind or nature, and Lessors covenants and agrees to defend the interests granted herein against all and every person or persons claiming the whole or any part of the Subject Property. 10. This Agreement shall be binding upon and shall inure to the benefit of the respective parties, their respective heirs, personal representatives, successors and assigns; provided, however, Basin shall have the right to assign this Agreement in whole or in part, only on obtaining the prior written consent of Lessors. 11. Basin will use its best efforts to provide Lessors and Lessor's surface tenants with advance notice of Basin's entry upon the Subject Property for purposes other than normal water hauling, equipment replacement or maintenance, or monitoring or inspection activities. 12. Lessors agree to indemnify and hold Basin harmless from all claims, demands, liability and actions asserted against Basin by any surface tenant or occupant of the Subject Property, arising out of Basin's operations on the Subject Property or for damages to growing crops thereon asserted by any such other occupant or surface tenant. Lessors may allocate the payments made hereunder with any surface tenant or occupant as they shall mutually determine themselves, and Basin shall have no liability therefore. WHEREFORE, this Agreement has been entered into as of the day and date first above written. BASIPERATING-C! PANY By: Dan L. Schwartz Vice President -L 950675 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 1 January 21, 1993 Page 4 LAURENCE H. RIEDER FAMILY TRUST By: _ Mary A ice Riedey/, Trustee O By:/�'.YCI�C!/ Mary Alice Rieder Laurence J. Riede STATE OF COLORADO ) ss. COUNTY OF DENVER ) The foregoing -instrument was acknowledged before me this day of4221, , 1993, by Dan L. Schwartz, Vice President -Land of BASIN OPERATING COMPANY. Witness my hand and official seal. My Commission Expires: Notatt Public STATE OF COLORADO ) ss. COUNTY OF WELD The foregoing instrument was acknowledged before me this Q9 </ day 1993, by Mary Alice Rieder, Trustee of the LAURENCE H. FAMILY TRUST. Witness my hand and official seal. My Commission Expires: 0:2_9 -43 of(caa,, /rc[/ar Notary Pub is 930675 Basin Operating Company Water Disposal Agreement UPRR PAN AM 43 /B/ No. 1 January 21, 1993 Page 5 STATE OF COLORADO ) ss. COUNTY OF WELD a The foregoing instrument was acknowledged before me this 029 day of 1993, by MARY ALICE RIEDER. Witness my hand and official seal. My Commission Expires: a- ff -/r3 STATE OF COLORADO ) COUNTY OF MELD -Ss. �J "(o -e", Notary Public The foregoing instrument was acknowledged before me this a?9 day of 1993, by LAURENCE J. RIEDER. Witness my hand and official seal. My Commission Expires: ,f..93 6 fit Notary Public 950675 Hello