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Home My WebLink About20240754.tifft IV OPERATING Ofr BISON March 12, 2024 VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED Re: Bison IV Operating, LLC Notice of Completeness Determination Sandy Bay OGDP Application — Docket No. 231200360 Township 7 North, Range 62 West, 6th P.M. Section 29: SW1/4SE1/4 Section 33: SW1 SW1/4 Wattenberg Field, Weld County, Colorado Dear Interested Party, 518 17th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 RECEIVED MAR 222024 WELD COUNTY COMMISSIONERS The purpose of this letter is to formally notify you that in compliance with the Colorado Energy and Carbon Management Commission ("ECMC" or "Commission") Rule 303.e., Bison IV Operating, LLC (Operator No. 10670) ("Bison" or "Applicant") filed the Sandy Bay Oil and Gas Development Plan Application ("Sandy Bay OGDP") with the Commission, and the Director made a completeness determination for the Sandy Bay OGDP pursuant to Rule 303.b. on March 6, 2024. This Notice of Completeness Determination letter includes the following information relevant to the Sandy Bay OGDP Application and associated completeness determination: i. The Operator's contact information including its electronic mail address, phone number, and physical addresses to which the public may direct questions and comments: Bison IV Operating, LLC Attn: Katie Gillen, Director of Regulatory Affairs 518 17th St., Suite 1800 Denver, CO 80202 Tel: 720.644.6997 Email: kgillen@bisonog.com ii. The contact information for the Relevant Local Government: Weld County Oil & Gas Dept Attn: Jason Maxey, Director 1301 N 17th Ave Greeley, CO 80631 Ted: 970-400-3579 Email: jmaxevna,weldgov.com c2rnrnor ;ca..* 0 rlS DM/©3/act GG : CitCzns), cAc3c3). OCR C JMt 03199 l aN 2024-0754 L Soo 03 f IV OPERATING Of BISON Bison IV Operating, LLC 518 17th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 iii. The Commission's website address, main telephone number and email address: Colorado Energy and Carbon Management Commission (formerly COGCC) 1120 Lincoln Street, Suite 801 Denver, Colorado, 80203 https://ecmc.state.co.us/#/home Phone: 303-894-2100 Email: Dnr.ecmc@state.co.us iv. The location of the Oil and Gas Locations (please see map below): Triggerfish Pad: approximately 16 -acres in the SW1/4SE'/4 of Section 29, Township 7 North, Range 62 West, 6th P.M. Barracuda Pad: approximately 20 -acres in the SW'/4SW'/4 of Section 33, Township 7 North, Range 62 West, 6th P.M. Nearby Public Crossroads: C.R. 74 & C.R. 79 tar • • • .•. • • .• •• • 34 • • Is • 27 • TA • •• •`_ • IIE • • • • • • I • • • • • • I • • • • `••M ••• • as• . • • •• • • it • • n . • • . •• • • • • •• • • • • • • • 1 e • a ��• • • • • 'e • • • • • • • • 14 13 za • • • • • • ~ • • • • • • • • • • • • . • • a • 77 • • • • 1• • • - •. • • • • • •• • • • 2500 ONO iOJkiI) • • • • • • • • • �•- • _2p _. _ . 21 • a • • • • a iris •• • • • to • • : • •• •M • • • • $5 H 11, ••••• IV OPERATING 0 BISON v. The anticipated dates that each phase of operations will commence (by month and year) is summarized below: BARRACUDA Construction: May 2024 Drilling: June 2024 Completion: November 2024 Production: January 2025 Interim Reclamation: February 2025 Bison IV Operating, LLC 51817. Street, State 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 TRIGGERFISH Construction: August 2024 Drilling: September 2024 Completion: December 2024 Production: January 2025 Interim Reclamation: February 2025 In addition, this Notice of Completeness Determination letter contains the following details regarding the proposed Sandy Bay OGDP development: i. How many Wells and Locations are proposed: Bison seeks approval of an approximate 4,196 -acre OGDP for the development and production of 23 total horizontal wells, to be developed from a total of two new Oil and Gas Locations. Bison proposes to drill 8 new horizontal wells from the Triggerfish Oil and Gas Location and 15 new horizontal wells from the Barracuda Oil and Gas Location. ii. The proposed construction schedule by quarter and year is summarized below: 2nd Quarter, 2024: Construction Phase for the Barracuda Pad 3rd Quarter, 2024: Construction Phase for the Triggerfish Pad iii. A description of each operational phase of development and what to expect during each phase. See Attachment A — Description of Operational Phases. iv. Proposed haul routes and traffic volume associated with each phase of operations. See Attachment A — Estimated Traffic during Active Operations. v. A description of any variances requested pursuant to Rule 502: Bison is not seeking any Rule 502 variances for the Sandy Bay OGDP Application. Furthermore, with this letter Bison is including the following information from the Commission: 1. The issued Notice of Hearing for a May 15, 2024, ECMC Hearing Date for the Sandy Bay OGDP; IV OPERATING Ig BISON 2. The Sandy Bay OGDP Hearing Application and Exhibits; Bison IV Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 3. The Commission's information sheet about the procedural steps involved with the Director's and Commission's review of Oil and Gas Development Plans; 4. The Commission's information sheet about the Commission's public comment process and the relevant deadlines; 5. The Commission's information sheet about hydraulic fracturing treatment; and 6. The Commission's information sheet about how the public may view the status of the proposed Oil and Gas Development Plan application on the Commission's website. Please note that the ECMC Director did not identify any additional information to include in this notice in her completeness determination. To learn more details about the Sandy Bay OGDP and ask questions about the Oil and Gas Development Plan prior to the closure of the public comment period, please contact me at 720.644.6997 or kgillen@bisonog.com. Sincerely, Katie Gillen Director of Regulatory Affairs Bison IV Operating, LLC Enclosures: Operational Phase of Development Traffic Volume Proposed Haul Route ECMC Information Sheets IV OPERATING 0 BjSON ATTACHMENT A Bison IV Operating, LLC 51817. Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 IV OPERATING 0 BISON Bison IV Operating, LLC DESCRIPTION OF OPERATIONAL PHASES ECMC Rule 303.e.: Notice of Director Completeness Determination Oil and Gas Development Plan Application Sandy Bay OGDP Barracuda Pad: SWSW, Section 33, Township 7 North, Range 62 West, Weld County, Colorado Triggerfish Pad: SWSE, Section 29, Township 7 North, Range 62 West, Weld County, Colorado North, Range 59 West Weld County, Colorado 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 F.: 303-974-1767 The submitted Sandy Bay oil and gas development plan application encompasses two (2) locations, consisting of 23 -wells, and two (2) production facilities. The Barracuda pad is located in the SWSW of Section 33, Township 7 North, Range 62 West, to be constructed as soon as required County, State and Federal approvals are in -hand, estimated in 2"d quarter of 2024. The Triggerfish pad is located in the SWSE of Section 29, Township 7 North, Range 62 West, to be constructed as soon as required County, State, and Federal approvals are in -hand, estimated in the 3rd quarter of 2024. Operations at the proposed drill site typically will begin with construction of the site and will include leveling the pad to accommodate the drilling rig. Once the pad construction is completed, drilling rig equipment will be brought onto location and rigged up. Drilling operations, which run twenty-four (24) hours a day until completed, will commence after the rig is "rigged up". The surface holes will be drilled to approximately 2000 feet using fresh water. Surface casing will then be run and cemented to surface to protect any shallow fresh water zones. Surface casing setting depth is determined from subsurface ground water maps prepared by the State Engineer and supplemented by the latest data available from offsetting wells. The cement is allowed to set, and well control equipment is installed and tested. After about 8 hours of waiting on cement'and installing well control equipment, a drill bit is run into the hole to drill the intermediate portion of the well into the potential oil and gas bearing formations. The wells will be drilled horizontally. The wells will be turned or steered such that a curve will be drilled to approximately 90 degrees or parallel to the surface of the ground. The typical vertical depth for the wells is approximately 7,000-8,000 feet below ground level and the length of the horizontal leg will be approximately 2 to 2.5 miles long. The total Measured Depth (MD) of a typical well in this project is approximately 17,000 - 20,000 feet. Once the horizontal section of the wellbore is drilled, a string of production casing will be run into the wellbore. This casing will be cemented into place to isolate the productive zones of the reservoir. IV OPERATING 0 BLSON Bison IV Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Bison's drilling rigs are equipped with a closed loop system. The drilling rig will be on location for approximately six (6) days per horizontal well. At the end of the drilling phase, the drilling rig will be moved off location. The completion phase begins when the drilling equipment is transported off the location. Completion operations are conducted twenty-four (24) hours per day over a period of several weeks. The site may be bladed and leveled to accommodate the completion rig and anchors may be set for the completion rig. Additional operations including cementing, drilling and logging may occur as circumstances require. For horizontal wells, multiple fracture stages are induced along the length of the wellbore in the respective formation into which the well has been drilled. During hydraulic fracturing, water is pumped at high rates and pressures that exceed the minimum in -situ rock stresses and hydraulically fracture the formation. Sand is then pumped into the created fracture to allow gas and oil to flow freely from the formation into the well bore. The fracturing equipment will consist of one Modular Large Volume Tank (MLVT) for fresh water storage, multiple flowback tanks, pressure pumps, blending and bulk material trucks with other necessary equipment. After fracturing is completed the mobile equipment is removed, excluding tanks that are used to retain the water that is produced during flowback and testing operations. No water is allowed to accumulate or be disposed of on surface. All water is hauled to approved disposal sites or recycled for stimulation use. The flowback tanks will remain on location until the well is rerouted through standard production equipment. The production equipment for these wells will be located adjacent to the wells. Typical equipment will consist of oil and water tanks constructed within berms comprised of steel rings with a synthetic or engineered liner, separators, vapor recovery and emission control equipment, gas compressors, meters, flowlines, and proposed electrical and/or solar equipment. The location will include automation equipment that allows operators to remotely monitor pressures, rates, temperatures, valve positions and tank levels. Once production commences, a Bison employee or contractor will monitor the location on a regularly scheduled basis. These inspections are done as a routine part of the lease operator's job. They conduct a visual inspection of the facility which includes all valves, fittings, wellhead, tanks, vapor control systems and all connections. The lease operator reports the tank measurements of the oil, gas sales, and pressure readings. Much of this production information is compiled and submitted to the ECMC on a monthly basis. In addition, the lease operator will inspect the site for hazards and weed control, maintaining the safety and appearance of the Pads. The anticipated lifespan for the proposed well(s) is 30 years. Once a well is determined to no longer be productive and/or economic, a plugging rig will remove production equipment and plug the productive zone(s) with a combination of bridge plugs and cement plugs. IV OPERATING 0 BISON Bison IV Operating, LLC 51817. Street, State 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Surface equipment no longer needed will be removed. Final surface restoration will involve the removal of any above -ground casing and the installation of regulation markers that will not interfere with subsequent surface use. Remaining disturbance will be restored to the original grade and reseeded in compliance with ECMC and Local Government rules and regulations and in accordance with surface owner's future land use plans. The expected travel routes for the proposed oil and gas location would follow Highway 392 to Weld County Road 74, then east on Weld County Road 74 approximately 4 miles to the proposed locations. The duration of construction, drilling, and completion activity is estimated to be between 7- 8 months for the Barracuda Pad and 3-4 months for the Triggerfish Pad (see Table 1: Proposed Development Schedule below). During this "active operations" phase, vehicle traffic will include passenger cars and pickups, semi-truck/trailers, and tandem truck vehicles. The number of round trips per day expected for each vehicle during active operations is summarized in Table 2: Estimated Traffic during Active Operations below. The highest traffic volumes are expected during the first two days of and the last two days of both drilling and completions operations. Traffic will intentionally be highest during daylight hours to mitigate noise and dust during non -working hours. IV OPERATING 0 BISON TABLE 1 Proposed Development Schedule Barracuda Location Bison IV Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Phase Duration (days) +/- 30 days +/-150 days +/- 60 days +/- 10 days Ongoing +/- 30 years +/- 30 days Estimated Start Date Construction 2" Quarter 2024 2" Quarter (June) 2024 4th Quarter (November) 2024 1st Quarter (January) 2025 1st Quarter (January) 2025 1st Quarter (February) 2025* Drilling Completion Flowback Production Interim Reclamation *or the first favorable weather/growing season. Triggerfish Location Phase Duration (days) +/- 30 days +/- 80 days +/- 30 days +/- 10 days Ongoing +/- 30 years +/- 30 days Estimated Start Date Construction 3' Quarter (August) 2024 3' Quarter (September) 2024 4th Quarter (December) 2024 1st Quarter (January) 2025 Drilling Completion Flowback Production 1st Quarter (January) 2025 Interim Reclamation 1st Quarter (February) 2025* *or the first favorable weather/growing season. BISON IV OPERATING Bison IV Operating, LLC TABLE 2 Estimated Traffic During Active Operations Barracuda Location (15 HZ Wells) 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Phase of Development # of Vehicle Roundtrips (per day) Passenger car equivalent roundtrips (per day) Construction Phase: earthwork of pad/facility & access road (30 days +/-) Passenger Vehicles111 13 Single UnitTrucksl2l 3 Multiple Unit Trucks131 32 — 38 13 5 113 TOTAL roundtrips per day = Drilling Phase (90 -150 days +/-, "'6 -10 days/well) Passenger Vehicleslll Single Unit Trucks(2) Multiple Unit Trucks131 TOTAL roundtrips per day = 57 131 9 4 9 9 8 27 22 44 Completion Phase (60 days +/; -15 days/4-well zipper frac) Passenger Vehicles111 26 Single Unit Trucks(2) 3 — 4 Multiple Unit Trucksl3l 26-188 (41 TOTAL roundtrips per day = Flowback Phase (5 —10 days +/-) Passenger Vehicles111 Single Unit Trucksw Multiple Unit Trucksl3l TOTAL roundtrips per day = Interim Reclamation (30 days +/-) Passenger Vehicles111 Single Unit Trucksl�1 Multiple Unit Trucksl3l TOTAL roundtrips per day = 26 8 75 — 563 55-218 109-597 7 3 4 7 5 12 14 24 5 0 0 5 0 0 5 Production/Operations Phase (ongoing for life of well, assuming facility is tied -in to distribution/collection system) Passenger Vehicleslll 2 2 Single Unit Trucks(2) 0 0 Multiple UnitTrucks131 0 0 TOTAL roundtrips per day = 2 2 0, Passenger Vehicle: < 20'; gross vehicle weight: 4,500 — 8,500 lbs (Source: CDOT State Highway Access Code [SHACJ), includes standard pickup trucks tz1 Single Unit Truck: 20' — 40'; gross vehicle weight: 10,000 —20,000 lbs; = 2 passenger car equivalents (CDOT SHAC) 14 Multiple Unit Truck: >40'; gross vehicle weight: 50,000 — 70,000 lbs; = 3 passenger car equivalents (CDOT SHAC) t� Multiple unit truck volume during the completion phase dependent upon water transport options, i.e., temporary layflat line vs. trucking water to location. IV OPERATING fif BISON TABLE 2 (Continued) Triggerfish Location (8 HZ Wells) imon IV Operating, LLC 51817th Street Suite 1800 Denver, CO 80202 Phone 720-644-6997 Fax 303-974-1767 Phase of Development # of Vehicle Roundtrips (per day) Passenger car equivalent roundtrips (per day) Construction Phase: earthwork of pad/facility & access road (30 days +/-) Passenger Vehicleslll 7 Single Unit Trucks�1 2 Multiple Unit Trucksl3l 17 — 20 7 3 60 TOTAL roundtrips per day = Drilling Phase (48 - 80 days +/; -6 -10 days/well) Passenger Vehicleslll - Single UnitTrucks1�1 Multiple Unit Trucksl3l TOTAL roundtrips per day = 29 70 5 2 5 5 4 14 12 23 Completion Phase (30 days +/-, -15 days/4-well zipper frac) Passenger Vehicles,�1 14 Single Unit Trucks1�1 2 — 3 Multiple Unit Trucksl3l 14 —10014) TOTAL roundtrips per day = Flowback Phase (5 —10 days +/-) Passenger Vehiclesl1 Single UnitTrucksl�1 Multiple Unit Trucks131 TOTAL roundtrips per day = Interim Reclamation (30 days +/-) Passenger Vehicles,'" Single Unit Trucks,�1 Multiple Unit Trucksl3l TOTAL roundtrips per day = 14 4 40-300 30-116 58-318 4 2 2 4 3 6 8 13 5 0 0 5 0 0 5 Production/Operations Phase (ongo►ng for hfe of well, assum►ng fac►hty is tied -in to distribution/collection system) Passenger Vehicles,�1 2 2 Single UnitTrucks121 0 0 Multiple Unit Trucksl3l 0 0 TOTAL roundtrips per day = (1) Passenger Vehicle <20', gross vehicle weight 4,500 — 8,500 lbs (Source CDOT State Highway Access Code [SHACJ), includes standard pickup trucks Rl Single Unit Truck 20' — 40', gross vehicle weight 10,000 — 20,000 lbs, = 2 passenger car equivalents (CDOTSHAC) 0) Multiple Unit Truck- >40', gross vehicle weight 50,000 — 70,000 lbs, =3 passenger car equivalents (CDOT SHAC) l) Multiple unit truck volume during the completion phase dependent upon water transport options, i e , temporary layflat tine vs trucking water to location 2 2 • Mee Proposed Oa & Gas location =or Urpa. d Road (County) mom State Highway P.. .ct..►t %CI * 4 :hots t:Jurtou •.1ttd iv: IDS IV OPERATING flY BISON HAUL ROUTE MAPS Bison IV Operating, LLC 518 17th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 BISON IV OPERATING, LLC BARRACUDA PAD SECTION 33, 7774 R62V4 6th P.M. WELD COUNTY, COLORADO P-ar.... fat • El! TV OPERATING B I SON Proposed Aooess Road o Paved Road (County) • Address Point Thee are rA sd10d facilities, future school fad(tles, or child care centers in Mich the haul route passes. Oa P•.r..., s, ORPG A° 1.500 3,000 Feet 1 irnt •gaals 7 3111 IP•t BISON IV OPERATING, LLC TRIGGERFISH PAD SECTION 29,17N R62W, 6th P.M. WELD COUNTY, COLORADO HAUL ROUTE MAP i.a7k' —"nab - 4 ..— - Proposed Oil & Gas location >! Unpaved Road (County) a State may a Proposed Access Road o Paved Road (County) • Address Point a##p•... r.. B -SON TV OPGRATTVG Thee are no school fadrties, future schod Plop s, or child care centers in which the haul route pastes. ►t.l•ttl.0 'a3I 'ICU♦ t.t.: acnlarac:i Cta"ts1 bf: tics A 1,500 3,000 Feet 1 le ill et+t•li 7.000 ter* IV OPERATING fil BISON Bison IV Operating, LLC 51817' Street Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 CONTACT INFORMATION Sandy Bay OGDP Barracuda Pad: SWSW, Section 33, Township 7 North, Range 62 West, Weld County, Colorado Triggerfish Pad: SWSE, Section 29, Township 7 North, Range 62 West, Weld County, Colorado Operator Bison IV Operating, LLC Katie Gillen Director of Regulatory Affairs 518 17th Street Suite 1800 Denver, Colorado 80202 720-370-5737 kgillen@bisonog.com Local Government Designee Mr. Jason Maxey Director of Weld County Oil and Gas Energy Department and Local Government Designee Weld County Department of Planning Services 1301 N 17th Avenue Greeley, Colorado 80631 970.400.3579 oged@weldgov.com Colorado Energy & Carbon Management Commission Ms. Julie Murphy, Director 1120 Lincoln Street, Suite 801 Denver, Colorado 80203 303.894.2100 https://ecmc.state.co.us/#/home • • BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE NIOBRARA, FORT HAYS, CODELL. AND CARLILE FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO NOTICE OF HEARING CAUSE NO. 407 DOCKET NO. 231200360 TYPE: OIL & GAS DEVELOPMENT PLAN Bison IV Operating, LLC (Operator No. 10670) ('`Bison" or "Applicant") filed an Application with the Commission for an order to establish an Oil & Gas Development Plan ("OGDP") on the lands identified below. Generally, an Oil & Gas Development Plan is the process whereby an applicant obtains approval to develop oil or gas resources at one or more oil and gas location by drilling a specific number of wells. Importantly, an OGDP is not a pooling application. This Notice was sent to you because the Applicant believes you may: 1) be an Owner of oil and/or gas ("mineral") interests to be developed by the proposed OGDP; 2) own, reside, or operate a first responder agency on property within 2,000 feet of a working pad surface included in the OGDP; or 3) be otherwise entitled to notice pursuant to Commission Rule 303.e.(1). APPLICATION LANDS Township 6 North, Range 62 West 6th P.M. S ection 4: All S ection 9: All Township 7 North, Range 62 West, 6th P.M. S ection 29: W'/2 S ection 30: All Section 31: All Section 32: All Township 7 North. Range 63 West. 6th P.M. S ection 25: All S urface Location No. 1 "Triggerfish Pad" Lands: Township 7 North, Range 62 West, 6th P.M. S ection 29: NW%SE% S urface Location No. 2 "Barracuda Pad" Lands: Township 7 North. Range 62 West, 6th P.M. Section 33: SW'SWIA 1 (231200360) • ofr 100 DATE, TIME, AND LOCATION OF HEARING Subject to change) The Commission will hold a hearing only on the above -referenced docket number at the following date, time, and location: Date: May 15, 2024 Time: 9:00 a.m. Place: Colorado Energy and Carbon Management Commission The Chancery Building 1120 Lincoln Street, Suite 801 Denver, CO 80203 Parties to this hearing will be notified if this date, time, or place changes. For the most up- to-date information regarding the Commission's hearing schedule, please visit https://ecmc.state.co.us/#/home, click on "Commission Hearings," and click on "Preliminary Agendas." PUBLIC COMMENT Any party may file a public comment for the review of Commission Staff related to the above -described OGDP. All public comments will be included in the administrative record for the OGDP proceeding. Parties wishing to file a public comment on the above -described OGDP may follow the instructions at https://ecmc.state.co.us/documents/sb19181/Guidance/Mission Change Guidance/Info%20Sh eet 303.e.(2).D%20Public%20Comment 20210309.pdf, or may use the eFiling system outlined below. PETITIONS DEADLINE FOR PETITIONS BY AFFECTED PERSONS: April 15, 2024 Any interested party who wishes to participate formally in this matter must file a written petition with the Commission no later than the deadline provided above. Please see Commission Rule 507 at https://ecmc.state.co.us, under "Regulation," then select "Rules." Please note that, under Commission Rule 510.1, the deadline for petitions may only be continued for good cause, even if the hearing is continued beyond the date that is stated above. Pursuant to Commission Rule 507, if you do not file a proper petition, the Hearing Officer will not know that you wish to formally participate in this matter and the date and time of the hearing may change without additional notice to you. Parties wishing to file a petition must register online at https://oitco.hylandcloud.com/DNRCOGExterna!Access/Account/Login.aspx and select "Request Access to Site." Please refer to our "eFiling Users Guidance Book" at https://ecmc.state.co.us/documents/reg/Hearings/External Efiling System Handbook Decemb er 2021 Final.pdf for more information. Any Affected Person who files a petition must be able to participate in a prehearing conference during the week of April 15, 2024, if a prehearing conference is requested by the Applicant or by any person who has filed a petition. ADDITIONAL INFORMATION 2 (231200360) • 1 For more information, you may review the Application, which was sent to you with this Notice. You may also contact the Applicant at the phone number or email address listed below. In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Margaret Humecki at Dnr ECMC Hearings Unit@state.co.us, prior to the hearing and arrangements will be made. Dated: March 6, 2024 ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO By Applicant Bison IV Operating, LLC c/o Jamie L. Jost Kelsey H. Wasylenky Jost Energy Law, P.C. 3511 Ringsby Court, Unit 103 Denver, CO 80216 720-446-5620 jjost iostenergy aw.com kwasylenky(c7 jostenergylaw.com Jon Peskin, Acting Secretary - JIMIT_ T. v. ,111.' _ l . . c .mot _ . '.► _: "' 1. ' 1 R[ 3 11. (231200360) BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 407 AND ESTABLISHMENT OF FIELD RULES TO ) GOVERN OPERATIONS FOR THE NIOBRARA, ) DOCKET NO. 231200360 FORT HAYS, CODELL AND CARLILE ) FORMATIONS, WATTENBERG FIELD, WELD ) TYPE: OIL AND GAS COUNTY, COLORADO ) DEVELOPMENT PLAN AMENDED APPLICATION COMES NOW Bison IV Operating, LLC (Operator No. 10670) ("Bison" or "Applicant") by and through its attorneys, Jost Energy Law, P.C., respectfully submits this Application to the Colorado Energy and Carbon Management Commission (the "Commission" or the "ECMC") for an Oil and Gas Development Plan ("OGDP"). In support of its Application, Applicant states as follows: 1. The Applicant is a limited liability company and is a registered operator in good standing with the Commission. 2. Applicant seeks approval of an approximate 4,196 -acre OGDP for the development and production of 23 total horizontal wells, to be developed from a total of two new Oil and Gas Locations on the below -described lands ("Application Lands") (the "Sandy Bay OGDP"): Township 6 North, Range 62 West, 6th P.M. Section 4: All Section 9: All Township 7 North, Range 62 West, 6th P.M. Section 29: W% Section 30: All Section 31: All Section 32: All Township 7 North, Range 63 West, 6th P.M. Section 25: All Surface Locations: Triggerfish Pad: approximately 16 -acres in the NWIASE'/ of Section 29, Township 7 North, Range 62 West, 6th P.M. Barracuda Pad: approximately 20 -acres in the SW' S.SSW' of Section 33, Township 7 North, Range 62 West, 6th P.M. Nearby Public Crossroads: C.R. 74 & C.R. 79 A reference map of the Application Lands is attached hereto as Exhibit A. (231200360/407-X)OXX) 3. With this Application, Bison is providing a copy of an Oil and Gas Lease for at least one portion of a mineral tract within the Application Lands showing the Applicant's status as an Owner in accordance with ECMC Rule 303.a.(1). See Exhibit B, attached and made a part hereto. 4. With this Application, Bison submits three Drilling and Spacing Unit Applications. See Exhibit C, Exhibit D and Exhibit E. 5. With this Application, Bison submitted a Form 2A for the development of eight new horizontal wells within the Application Lands from the proposed new Triggerfish Oil and Gas Location pursuant to Rule 303.a.(2) and Rule 304, Document No. 403550448. Bison is concurrently seeking a 1041 WOGLA siting permit from Weld County for the siting and the related surface disturbance for the proposed Triggerfish Oil and Gas Location pursuant to Rule 301.f. 6. With this Application, Bison submitted a Form 2A for the development of 15 new horizontal wells within the Application Lands from the proposed new Barracuda Oil and Gas Location pursuant to Rule 303.a.(2) and Rule 304, Document No. 403550437. Bison is concurrently seeking a 1041 WOGLA siting permit from Weld County for the siting and the related surface disturbance for the proposed Barracuda Oil and Gas Location pursuant to Rule 301.f. 7. With this Application, Bison submitted a Form 2B Cumulative Impact Data Identification pursuant to Rule 303.a.(5), Document No. 403550463. 8. With this Application, Bison submitted a Form 2C OGDP Certification pursuant to Rule 303.a.(7), Document No. 403550465. 9. With this Application Bison submitted its required Rule 505 testimony. 10. Bison certifies that pursuant to Rule 302.e, it notified Weld County as the Relevant Local Government that it planned to submit the Sandy Bay OGDP Application no less than 30 days prior to submitting this Sandy Bay OGDP Application. There are no Proximate Local Governments within 2,000 -feet of the Working Pad Surface of the Triggerfish Pad or the Barracuda Pad. The Rule 302.e 30 -day notice letter to Weld County is attached and made a part hereto as Exhibit F. The 30 -day pre -notice complied with the procedural and substantive requirements of Rules 303.e.(2) and (3). 11. Bison certifies that copies of this Application and the Notice of Hearing will be served on each interested party as required by Rule 504.a, Rule 504.b.(1), Rule 504.b.(2), 504.b.(5) and Rule 303.e. The Interested Parties list is attached hereto and submitted with this Application as Exhibit G. 12. Bison certifies that upon completeness determination by the Director of the Sandy Bay OGDP, Bison will provide notice of the Director's Completeness Determination to each interested party required by Rule 303.e. 13. The granting of this Application is in accord with the Oil and Gas Conservation Act, found at C.R.S. §§ 34-60-101 et seq., and the Commission Rules. (231200360/407-XXXX) 14. Applicant requests that relief granted under this Application should be effective on oral order by the Commission, and Applicant hereby agrees to be bound by said oral order. WHEREFORE, Bison respectfully requests that this matter be set for hearing in accordance with applicable Commission Rules, that notice be given as required by law, and that upon such hearing this Commission enter its order to: A. Approve the approximate 4,196 -acre Sandy Bay OGDP for the development of 23 new horizontal wells within the three drilling and spacing units proposed for the Application Lands; B. Provide that the subject wells shall be located on the Triggerfish Pad and the Barracuda Pad within the Application Lands and approve the associated Form 2As for the Triggerfish Pad and the Barracuda Pad where applicable; C. Find that the Sandy Bay OGDP will protect and minimize adverse impacts to public health, safety, and welfare, the environment, and wildlife resources and will protect against adverse environmental impacts on any air, water, soil or biological resource in compliance with C.R.S. § 34-60-106(2.5)(a); D. For such other findings and orders as the Commission may deem proper or advisable in this matter. Dated this 7th day of March, 2024. Bison IV Operating, LLC By Jamie L. Jost Kelsey H. Wasylenky Jost Energy Law, P.C. Attorneys for Applicant 3511 Ringsby Court, Unit 103 Denver, Colorado 80216 (720) 446-5620 J iost(cliostenergvlaw.com Kwasvlen ky(ahlostenergvlaw. com Applicant's Contact Information: Bison IV Operating, LLC Attn: Katie Gillen, Director of Regulatory Affairs 518 17th St., Suite 1800 Denver, CO 80202 Tel: 720.644.6997 Email: kgillen@bisonog.com 12312003601407-XXXX) VERIFICATION Katie Gillen, of lawful age, being first duly sworn upon oath, deposes and says that she is the Director of Regulatory Affairs for Bison IV Operating, LLC, and that she has read the foregoing Amended Application and that the matters therein contained are true to the best of her knowledge, information and belief. Dated March 7, 2024. Katie Gillen Director of Regulatory Affairs Bison IV Operating, LLC 12312003601407-XXXX) Amended Exhibit A — Reference Map Wattenberg Field, Weld County Township 6 North, Range 62 West, 6th P.M. Section 4: All Section 9: All Township 7 North, Range 62 West, 6th P.M. Section 29: W1/2 Section 30: All Section 31: All Section 32: All Township 7 North, Range 63 West, 6tI, P.M. Section 25: All Surface Locations: Triggerfish Pad: approximately 16 -acres in the NW1ASE1/4 of Section 29, Township 7 North, Range 62 West, 6th P.M. Barracuda Pad: approximately 20 -acres in the SW'/4SSSW1/4 of Section 33, Township 7 North, Range 62 West, 6th P.M. Nearby Public Crossroads: C.R. 74 & C.R. 79 1 • . 4 , 3 ' 3 �/ 17 • 16 • 7, o 74 It; 4 16 0 • • •• 15--- • * .--1- • •` 7N63W 21 e 22 23 24 • • 9 =3 21 • 22 23 • 24 • 39 29 Triggerfish Pad r28 ■ • • 27 • 26 23 28 • • 27 • • • • 2? ;•••I • • • • C.R.79—O • • • • • �...■�� 31 C.R. lir • 74 32 • Barracuda Pad • • • 33 34 35 • • 36 • , • • • -• 1 •• • - ! ( • • 34 i • ii5 del ) r i 74 ei 7 • • • Eli; • • • • • S• • • T • • • II 2 f •^_ • • 4 3 6 5 �� 2 1 • • • • • • ! • i r - Iea . , lel _ • ift_ • • • • • ♦ • • N { _ .. A - • _� ~_ i • • . � 777 •- ...+ __.._ }- - •' • •• • •9 - t t• ..... • 1 1p' • 7 •• 8 • 1 9 • �0— 11..--_ — t2____` .� _ • -• • • • • • %._.-- YT!TT 1111 41 '• ogitlit I . • l E :-• : • ♦ • _ S • . II I _ 13 4_ 18 • 17 16 j --3‘..:=13= •- • 15 14 - - • • • ` ` i• 041 • •tt®-t • 0 -... 0,11_• • 2500 5(300 =-4.___________- • _ _.,10,4 - -- •',x• ' • e • & ar -,�- ---a--- ��--- — • .,� 24 I 22 1 L '� i _ —� 21\ z i I liiill HIM III Hill MIIIII III NM NI MI 3607525 02/2612009 02 43P Weld County, CO 1 of 3 R 16 00 D 0 00 Steve Moreno Clerk & Recorder PRODUCERS 88 PAID UP Rocky Mountain 1995 No 1 525 Rev 8/01 Exhibit B OIL AND GAS LEASE THIS AGREEMENT Made and entered Imo the 3rd day of November , 2008, by and between Crate T WOhs whose address Le f O Bpi 223 Lacrosse, WA 99143 hereinafter called Lessor (whether one or more) and Capital I and Semmes/Ate whose add., u P O, Box 2810 Edmond Oklahoma 73083 hvemaher called lessee lA TNESSEIIL 1 That the us... for and m consideration of Ten and more ann.- (S10 noel to hand paid, receipt and mfficieo), of vvt is hereby to isce:1 dged and of the agreemanu of Lessee hernna8er set fon6 hereby pains demises leases and lets exclusively tune Lessee the lands desm'4cd bdow for the phmpose of mvcsingatm&, prospecting exploring (by geophysical and other methods) dnlhr, , mining operating for producing oil w ,,as, w both (as defined below) together comb the n&,lit to consmrct and hnantavi phpehn. telephone and eltttnc hoes, tin13, ponds, roadways Plants, egmpmem and structures Ocean to produce sins and take care of sated of and pis (which right shat( include speafirally a ngln of way and easement fun ingress to and epess from sad lands by Lessee, or rrs asshymxs, agents w pstmrOees, necessary to or assenuted with the ...thou and maintenance of such Timelines telephone and electric Imes, tanks, ponds roadways plants, equipment and siroetmea on sad lands to produce save end take etre of the ad and gas) and the exclusive right to inject tar gas 70101.. se and steer hinds from any source into me submit.= strata and any ind all other n&hts and pnvle&Ks necessary Inctdenl to or comenietit for the ecomomal apemtion of sated land alone or anyamty wtm netghbomhg land, for the production, swan& and taking care of of and bas and the imecmoa of air �. water bmhe and omerHhvds coo the subsudam strap, sad lands being.... rD me Cmimy of Weld State of Colorado desuhbed as follows 10-VAL Section 20& JO, Township 07N, Ranee 62W Sec 20 W/2 con See 30 SE/4 and SE/4NE/4 and Ef2 SW/4 and l of 4(38 99 acres) MIA SW/4SW/4 anJ conainmg 478 99000 Dcrcs more w lets hciomfler tailed "leased prams." In addition to the land described above, Lusty hereby groats leases and lets exclusively unto Lessee to the same extent as ifseneClOy desen3ed, lands which are owned w c.o. by lessor by one of the foltosan& reasons (1) all lands and nghis acquired or retained by Lessor by avulsion, accretion relictton or othen/me as the result of a change m the boundaries w comedic of cry river or.rcant tmveng or '" en g the (ands described above R) al{ riparian (ands and motets whmL arc or maybe mdame, appuneaant related or attrhbutal to lessor m any lal.e atreanh or over traversing or ad)ommg the lends descibed above by artne of Leswfs ovvoership of the land d.cnbed above (3) all lands included m any coal easeniel or e' of way traversing or roboimng the lands descobed above which are or mtv be mcidem appurtenant, tinted w minimal to Lessor by venue of Lesaoes owtershrp of the land described above and (4) all stops or tracts of land adjacent or contiguous to the lands described above ti sial or acquired by Lessor through adverse possession or other similar statutes of the state to which 0ic lands are located 2 Subjttt to the other yrovt.ons heron contaned mu lease da0 remain m force for a term of Pove 51 Years years from this dare (herein eallcd'prtmary term ) and as Ion& me eea0er asof and gas, or nma of them a produced from the leased pmntses ar doping operatiens are continuously prosecuted For purposes of thus lease, 'dnlLnb opembrms" shall include operations for fie dnllmg of a new well end npemnons fun the reworking, deepening or plugbm& back of a cod(oc other operations conducted m an effort to espbbsh rushhme or rcespbhsh production of oil and gas dNlmg opctauons sha8 be eonsudered to be "contmuoazly prozechned" hf not more than one hundred twenty (120) days shall elapse between Ice completion and abando®hent of one well and the commencement of drilling operations= another well and Lessee shall be 'engaged to doping operations or shall have commenced drilling operations with respect to r..dung deepening phugpng baJ or other operations conducted m an effort to resume or reestablish prodacihoo of... gas at such time as lessee has dm requisite equrpmat for such operatioss at Ile Mllate to addmaa for coal seam as wells the term dnitinglopemtions shall specifically include the dewatenng and associated resting of ma well and while the Lessee is conductinb such dewatennb and t.l , this lease shall not terminate bnl mom in fora and effect =Oise. dewatenng and testing hs amplete and the xeil is either abandoned or deemed to be capable of producm& of and pas 3 This is a PAID -UP LEASE In consideration of to above cash payment lessor agrees Oat Lessee shall not be abhgalcd, czcept as othutase pmadeJ heron to conhmahoe or continue any apemuons during Ilse pmriury trnn Iessa may at any cite or times during w after the prima} semi wtrenda this Icase as to all or :Crown's' ny pinion of said land and n to any stmt' nr simmm by delwermg to Lessor or by filing for retool a release eureleases, and be relieved of all oblhgahon thereafter a Cro as to the acres, snoender. 4 For all oi4 Sots and other liquid h)drorir6oas Thal are physically produced from the leased premises, w lands pooled, wdrzed or erimmuMrzed fhereuuh and sold Lana shall receive us ns royalty oner i tl/8) of Ilse sales proceeds actually reawed by Lessee ar rf appirrable its affmae az a 7: of the lust safe of me effected production mean unaffiliated pony Icss this some percentage share of at Post Production Cosa and tha rams paanm&e tore of all produuial se lei acid ad valorem pxea As rhsed +o Ibis provn.on Post Prafumion Cods shall mcmi fifty percent (50%) of all costs actually hiicimal by Icss. w ds tf ilwle and all losses of proJucxvl whines whether by rise az fuel hoc loss Hann&, ol'onb or otherwise from and afler the wellhead m the point of sale These cosh mei.. van.' limitation allcosts of gathsnng market's', compression dehydration iransponamot removal of bgwd or pcseuus iubstanas oc uoPunties from tM1e affected pnxlutuon and any other Ircatmrnt or pro.ssmg required by the first una?diated party who phm,hases die affeued producion Ew royalty calculation purposes Lessee shall never be required to adjust the sal. proceeds to account tun the prm:hasv s oasts or charges downstream of he, point of sale I,oc'ee or ns a:c tale shH have the rbld to eunsirua lade in and operate soy famines proadmg some or alllof the same. identihed as Post Production Costs If thss occurs the actual acts of such faalmi.s sfmil be ineludcd m the Past Production Coats az a per barrel w per meCc6arge, as appropriate, ealalaled by spreading the construe.. maintenance and operating costs for such facilities over the reasonably eslrmated foist production vohmtes atlnbutable m the MII or wells If Lessee uses the of gas art other hgnnt hyJrocnrbons (oiler elan as fuel m connttdon with the production and sale thereof) nth. of reanw8 sale proceeds the puce to be used under this proa.on shall be lscd to =affiliated parties for dre applicable month that are obtainable comparable m terms of quabry and gwntity and w closest proxunny u Costs aDDhcable to the specific ium s length tmasachon shat hs milirsd Where &as from a well oc wells capable oC produnng gas only is not so1J or uscJ Cw + prod of ono ye.0 Le I e tall pay or tender as royalty One pass (SI 00) per year per net royalty auo reined hereunder paytble annually on the atmtversary Hate of ins lease following the end of each such year during which such bas is netsold or osed andwhile sodroyalty is so pad or renderedthis..shall beheld as a producing property under Pampaph 2 hmeof s length sales puce shall be less any Post Production If Lessee dolls a well uhheb rs incapable of producin& tin paying quanhh. there.. wiled "dry hole) on dies {eased proms. or lands pedal mom.. theimvth or if all prodactiat (whether or not in paytnb quanuhes) pennanenty rases from any =use, mowing a revision of inn bamdenes pursuant to the provisions of Par graph 8 or Mean= deer bovemroaipl aumorny tha m the event il.lease a rot.,==wise being maudamed m brad shat) nevertheless remain m fora+f Lessee commences funl+er opemuom fun reworking deepening or plugpng back an exhstmg well w far dnlhng n adddhonal welt or run otherwLm obtauuog w re.onng proJuennn rot the leazed promises or lands paled ur unused t6rrnvnh wnhtn one hundred twenty (120) days after amplet+on erePeral.. an such dry hole wvathhn uae himhhed %r (120) days after such assa6on of all production or slhould the lease be vnthm tie primary tern if Lessee ammcoces such lumber opaalionr provide) mat sliouid comphamn of operations on thv dryhale w ccssmton of all production occur during the last ,ar of the primary tern no funiter opeiations shall be required to maamm this (case for the remandv of the primary term If dhouhg or after the primary term this leasers not otlmrwrse rag:Tired Tired m Iota bpi lessee is then engaged dnllmg reusdim& 'an). r any nth. oPemtions reasotably calculated ro obtain or restore production thetefropi, has lease shall remain m face so long as anv one or more of such opemnons arc proseeuteJ with no 17::'";2:1"'"7:1== teruption of more Own one &mitred twenty (120) consmaive days, and dray wch operalhans civic m me proihelion of of or pps w other sulxtanas covered hereby anJ az long thereafter' mere u production m paying quaaunes from the leased premises w lands pooled ar unmztd memnth Atler conrylehon of a well capable of producmb m prang quantmes hveundcr Lessee shall doll suchleddmonal cells on the leazed prcmhscs or sands palm or umbsed mcrcwtdr as a reasonably pendent opcintw would doll undo the sams w mmhlar cuumrvances to (a) develop the leased menus. as to neutrons meet capable of producing m paying quantities on the leased pretenses or lands pooled or umlhad Clem a or @) protect the Ierscd premises from uncompensated drainage by any well or webs Iwo. on other lands not pooled w united therm.. There dal( be no covenant to doll exploratory wells or any addmonal wells except as expressly provided htmem 5554 prcmixs, except ricer the producnon :tiara n witch Lessor s royalty s calculated shall he that propomon of the total u nit rode 4t h h d b th' Pa included in the unit bears [o the total gross acreage ht the unit, bra oily to the extent such proportion of unit production is sold by Lessee. In the even a unit is fanned 1111NL11111111111 H1111111111111111111 III 11111 till 1111 3607525 02/26/2009 02:43P Weld County, CO 2 of 3 R 16.00 D 0.00 Steve Moreno Clerk tit Recorder G [f Lessor owns less than the (tilt mineral cstac in all or any pan of the leased premises, royalties and stud -in royahies hercundu sfialt be ralnced as follows: royalties artd shut-in royaties f. any well on any pan of the lcasrxl premises or (ands pooled u unitized therewith shall be reduced to the proportion that Lessors interest in such pan of the leased premises bears to the full mineral estate' in such part of the leased premises. To the.u.mt any royalty or other payment attributable to the mineral estate covered l+y this lease is payable to someone other than Lessor, such royally w other payment shall be deducted from the corresponding amount otherwise payable to T In exploring for, developing, producing and marketing oil, gas and other substances covered hereby, an the leased premises or lands pooled . unitized therewith, in primary randier enhanced recovery, Lessee shall have the right of ingress and egress along with the right to conduct such operations on the teased premises as may be reasonably necessary for such purposes, including but not limited to geophysical operations, the drilling of wells, and the construction and use of road, canals, ipelines, tanks, water wells, disposal wefts, injection "•ells, pits, electric and telephone lines, power stations, and other facilities deemed necessary M1y Lessee let discover, produce, store, trial and/or Iranspon production. Lessee may use in such operations, free of cast, any oil, gas, water and/or other subsnanees produced on the leased ,inter tram Lcssefe wdls"Pee' In exploring, developing, producing er marketing from the leased p anne r lands pooled or unitized therewith, the ntcJ herein shall apply (a) la the entire leased premises desrn3eJ in Paragraph I above, natwitlhstandingany }rartia] release. other partial termination of to any other lands in which Lessor now or h neater has authority to gran.. rights in the vicinity of the IL. premises or lands pooled or unitized en Tees" by l.cssor in writing, Leuce shall Fury its pipelines below ordinary plow• depth nn euhivatcd lands No call shall be located lots than 200. feu e. ba" on the leased premises or other lands of Lessor used by Lessee hrY lei r, without Lessor's ems:nt and Lessee shall pay f'. damage caused by he leased premises or such other lands, and to commercial timber and growingrxops thereon. Less= shalt have ixhmes, equipment and mmain., including well casing, from the lensed premises and/or such other lands during the term of this lease or ''''":"""e:.1:1".. esue shall have the right hat not the obligation pool. unitize till or any pan o(the leased prcmis:s or interest therein with any alto lands or interests, as to any err all depths . zones, and as to. alt substances covered Fy this lease. either hef.e or after the commencementof drilling or production, whenever Lessee Deems it accessary. prop" e:do so in.d" to prudently develop nr operate the leased tsunises,who. or ram similar pooling authority existswith respect to such otter IauJs or interests. The emotion of a non by sod,. shall be based e t the following erileria (hcrcinanu called "pooling criteria"): unit f. an ail well {other than hurimntal axnpletion) shat not exceed 40 acres plus a maximum acreage tot ice of 10%; and for a gas well or a horizontal eomplerioa shall n. exceed 040 acres plus nmxitmnn acrcagc tolerance o(10.�; protidcd tint a larger unit may be Formed for an o patcm that may be prescribed or permitted b}• any govemmeutal mnhorip• having juris shall have the meanings prescriber by applicable let gasnii ratio of Icss Than .100,000 cuhic feet per barter at «7 d d d d d d' moral completion to conform a any well spacing. density urpese of the foregoing, lM1e teens "oil call"and "as well" bed, "oil well" means a well with an initiaV feu or more p" bamL based on a hour m ucuon icst eon acre tin a norm pro ucmg con uitss using stendanl lease separator facilitiq. equivalent resting equipment; and the term "horizomel completion" means an oil anNor gas well in which the horiztnrtal component of the gross compleion interval in the reservoir exceeds the vertical component thereof. fn exercising its -s he re on , lessee shall file of tu:ord a written deelnrolion describing the tint( and stating the effective dote of pooling. Production, drilling or rZonifing here on a unit, which includes ail or any pan of the leased premises, shall be treated u if it were production, drilling. reworking operations on the. leased nip coon w is t c n" acrcagc covcre y rs cast hereunder before the unit well is drilled and completed, so that the applicable pooling criteria are not yet known, the unit shall be based on the pooling edtena lessee expects in good faith to apply upon completion of the well; provided that within a reasonable time alter completion of the well, the unit shall be revised if necessaryto cohConn to the pooling criteria that actually exist. Pooling in one or more instances shalt not exhaust Lessees pooling rights hereunder, and Lessee shall have the recumng right but nom. obligation to revise any unit rowed hereunder by expansion or contraction or both, either before or after commencementof production, in order to con Conn to the wet spacing. density pattern prescribed or permitted by the govenunenml authority having jurisdi... or to conform to any prwluclive acreage deennination mad.. by wch gave %on., authority. To revise a unit hereunder, Lessee shalt file of record a written declaration describing the revised unit and stating the effective date of revision. To die extent any ponian of the leased premises is included or excluded from the unit by vinuc of such revision, the prop.tion of trait production on which rny"Iries are parinble hereunder sham thereatcr he adjusted acc.dingly. In the absence of nroducion in oavimt mhanrirics form a unit."anon oermanrnt crssation thereof_ Lessee may temninae the unit by filingaf record a "aiticn declaration describing the unit 9. shat the right but not the obligation fo commit all or any pan of the leased premises or interest therein m one or more met plans. agreements for the cooperative development or operator of one or mine oil and/or gas ressrvoits. portions thereof, if in Ussce's judgment such plan or agreement will prevent waste and protect correlative rights, and if such plan or all, is approved by the federal• state or local governmental authority havingpaisdiction. When such a ...miasma is made, this lease shall be subject to the terms and con dnions of the unit plat or ayTeement, inchiding any formula prescribed therein for the allocation of production. 10. The interest ofcithcr Lea. or Lcssce LcmunJcr may be assigned, deviscdor o[herwi! rights and obligations of Ole parties ....or shall extend m their respeaive heirs, devisees, e: ownership shall have the cnbet of rcdmcing the rights or enlarging the obligations of Lessee herewt days rater Lessee has been famished the original or duly aathenticmed copies of cite dceumenta to Lessor has satisfied the notification requirements contained in lessee's usual Coot of division or lhercnnd", I.essec may pay err end" such shut-in royalties to the credit of decedent or decedent s hereunder, Lessee may pay or tender such slw!-in royahios a such persons or to their credit, eitht Lessee transfers its interest hereunder in whole or in pan Lcssce shall be relieved of all obligations transferee to satisfy sack obligations with respect to the (marl"red hottest shall not affect the ri transfers a full. undivided interest in all or any peahen of the area covered by Ihis lease, the oblige Lessee mid die transtrree in proportion to rlw net acrcagc interest in this lease then ]told by notch. mall of the _,._..ion to the interest wfiich each Dams. tf respect to the lraaferted interest, and failure a • the specs to any interest not so transferred. If Lessee tin royalties hereunder shall be divided between wch ob official by or under wholly controlled by Lessee and this Icasc shall n. be terrain wch obligaions or covenants if compliance dtcrcwith is preaemed err hindered by or is in conflict with any of the foregoing ail be prevented from er...cling drilling or reworking operations during tat primay lean of this lease, ender the elms I?. fi Lessor, during the primary teen of this lease receives a bona fide offer from a third party to purchase from Lessor a tease substances covered by this lease and covering all or a portion oldie land described herein, wills such leasc to become effective upon expiration of olfucr, the pace offered and all other pennant minuend conditions of the offer. Lessee, Fora period of f ine:a o S) days aver the receipt oC cite noice, iltall have t+c prior and preferred tight mid np;ion to p:trehese etc lease or pan thcreo(or touts( therein covered by the oRer"the price and nn the (calls and conditions in the offer. All offers made up a and including cite test day of the primary term of this lease shall be subject to the terms and cordttrws of Ihis PamgrapF. 13. Should Lessee elect to purchase the lease pursuant to the terms hereof, it shall so notify Lessor in writing by mail, thief, telegram prior to expiration of said fifteen (15) day period. Lessee shall promptly thereafter furnish to Lessor the new lease for execution by Lessor along with Lessee's sight draft payable to Lessor in payment of the specified amount as consideration F. the new lease, such draft being subject to approval of title according to the terms thereof. Upon receipt thereof, Lessor shall promptly execute said lease and ram sane along with the dmfl to Lessor's bank of mind for payment. 14 In the event Lessor wnsiders that i. trsee has not complied "its an of its obligations hetern) d both express and implied, Less. shall notify Lessee in writing, selling oat prcific:dly tit which respects L.cssee has breached this lean. Lessee shall Ihen have sixty (GO) days after receipt eT said notice within which tq meet . commerce m mcu all or an}• pan of the breaches allegro by Lessor. The srnice of said notice shall 6e precedent to the bringing of any action by Lessor on said lease F. any cause• and no such UtiLi shall Fe brought until t7 Inpse o! sixty (Oct) days after service of such iLI oat Lessx. Neither the service of said notice nor the doing of any nets by Lessee aimed to meet all or arty• oC use alleged breaches shall be Deemed tin admission or presumption lice l.cssee has failed to perform afi of its obligations herwnder This lease shall never beforfeited or canceled f. failure ro pereit in whole nr in pan any of its implied covenants• wnditions,. stiputatti until ajudicid duerminaion is made that mclh failure exists and Lessee fails within a reasonable time to satisfy any such covenants, conditions or stipulations. i 5 Lessor hereby ""tams and agrees a defend Ode conveyed to Lessee hercundu, and a e rho I-essee " Lessee's option may pay and discharge any taxes, mongagcs or liens existing. levied. assessed vn . against the leased prenisea. If Lessee exercises such option, Lessee ssall be subrogaed to the rights of the parry to whom payment is made, and, in addition to its other rights, may reimburse itself out of any royalties or shut-in royalties otherwise payable to Lessor hereunder. In the event Lcssce is made aware of nn}• claim inconsistent with Lessor s tide Lessee may suspend the payment of royalties and shut-in royalties hereunder, withein (merest, until Lessee has been famished satisfactory evidence that such claim has beer resohed. 5554 1311.111111111 111111 1111 111,111 1111111 Ill 1111111111111 3607526 02126/2509 02:43P Weld County, CO 3 of 3 R 16.00 tf 0.00 Steve Moreno Clerk & Recorder 16 This lease and all its terns, conditions, and stipulations shall extend to and be binding on all successors in interest, in whole or in pan, of said Lessor and Lessee. With respect to and for. purpose of this lease, Lessor, and each of them if there be more than one, hereby release and wive the right of homestead. 18 The tern oil as used in this lease shall include any liquid hydrocarbon substances which occur naturally in the earth, including drip gasoline or other natural condensate recovered from gas without resort o manufauuring process. The term gas ac used in this lease shall include any substance, either combustible m non combos.. which is produced in a natural state from the earl and which maintains a gaseous or ratified slate at ordinary temperature and pressure conditions, including but not limited to hdiunr, nitrogen, carbon dioxide, hydrogen sulphide, gas producai from coal seams or any formations in communication therewith (herein called "coal WITNESS our hands as oldie day and year first above written. Crace . ; it is 14 -1111:° sTATE OF VvICILS \. 8,0)40, COUNTY OE h-silfYVA.Y\ Okhhoma, Kansas, New Mexico, Wyoming, Montana, Cdorado, Utah, Nebraska, North Dakota. Suutp pakoM ACKNOWLEDGMEN4NDl YIDUA L BEFORE ME, the undersiped, a Notary Public, in and for said County and Slate, on this 13 day of Novt.sr 20O8, personally appeared Grace T. Willis tome known to be the identical person., described herein and who executed the within and forego.g instrument of wsilmg and achowlcdged to me thalg g duly executed the same as iygr Cree and voluntary act and decd 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 written. My commission expires a ,r .01( (SHAT.) Mer R �corling plcasc return to: Capital tonal Services, Inc. PO Box 28t0 EJmunJ, OK 73f18.i Notary Public 5554 11111111111i 111111111111111 IIIII iIIIIII III 111111111 IIii 77s 3692775 05/12/2010 02:06P Weld County, CO 1 of 3 R 16.00 D 0.00 Steve Moreno Clerk& Recorder PRODUCERS 08 -PAID UP OIL AND GAS LEASE AGREEMENT, Made and entered into the 26th day of March. 201Q, by and between Caro. Thomason, also known as Caro. JThompson, Indivtduaysr and Attorney -in -Fact for Howard Thompson, also known as Howard W. Thompson, hatband and wife, whose post office address is 29901 Sherwood Road, Fort B111E , CA 93437. hereinafter called lessor (whether one or more) and Sprinelield On Company whose post office address is 22.7619 Brook Drive, Hot Syria,. Sou. Dakota 57747, hereinafter called Lessee: WriNESSETH, That the Lessor, for and in consideration of TEN AND MORE DOLLARS cash in hand paid, the receipt of wh.cF is hereby aclmowlcdged, and the covenants and agreements hereinafter contained, has granted, demised, !cased and let, and by these presents does grant, demise, least and let exclusively unto the said Lessee, the land hereinafter des.bed, with the exclusive right for the purpose of drilling, mining, exploring by geophysical and other methods, and operating for and pmdaeing therefrom oil and all gas of whatsoever nature or kind, specifically including helium, carbon dioxide, and coalbef methane and any and all substances produced m association therewith from eoal-be.ng formations, &watering of coatbed methane with ingress and egress for nets of way and easements for roads, laying pipe lines, water wells, disposal wells, injection wells, pits, electric and telephone !rhea and erection of structures and other teed.. thereon to produce, save and take care of said products, all that certain tract of land situated in the County of WELD State of COLORADO described as follam, to wit: TOWNSHIP 7 NORTH, RANGE 62 WEST, 6th P.M. Station 32: S/2, NE/4; together with any reversionary rights therein and together welch all riparian rights and strips or parcels of land, (not, however, to be construed to include panaets by Lessor, a containing Legal subdivision or lot of approximately corresponding size) adjoining or contiguous to the above described lard and owned or claimed by Lessor, err Produce i x00.00 acres, mo or less iMLeased Premises") =1=11,1 ogether with the right to use the Leased Premises to conduct the actrvtti.s described above too,:velop and produce al and gas of whatsoever nature or kind from lands outside the Leased Premises, including by drilling wells from the Leaser! Premises to lands de the Leased Premises. 1. It is agree d that this lease shall remain in forcefora term of FtV E L) years from this date and as long thereafter as Moor gas of whatsoever nature err kind is produced from said Leased Premises or on acreage pooled, communitized or anitiud therewith, or drilling operabons are continued as hereinafter provided 1f, at the expiration a the primary term of this leasq oil or gas is not being produced on the Leased Premises I' e" acreage pooled, exanmw itized or unitized therew•tth but lessee ss dnen engagt� in drilling, re•wotking, or dewatering operations thereon, then this lease shall continue in force so long as operations are being wntinuuusly prosecuted on the Leaser! Premises w on acreage pooled, ocommur n.. or unitized therewith; and operations a . be eunsidered to be continuously prosecuted if not ism.. one hundred and twenty (120) days shall elapse between the completion or abandonment of one well and the beginning of opmateons for the driving of a subsequent well if.. f after discovery ofoit or gas ern the Leased per, or on acreage pooled, mmmanitized or unitized [herewith, the prodtnuion or dewatering thereof should cease from any cause aver the primary term, this lease shall not [ermirrete t Lessee commates additional drilling, ro-wor eing or d waterin "..."'tons within eve hundred trod twenty (120) days from date of cessation of production, dewetering or from the date of completion of a dry hole. If'oil or gas shall be distwvered and roduced ...g.;..”1, of sch oerations or dewatering operations ate continued at or after the expiration of the primary term of;belt lease, this lease shall continue in !.:7: see lonroil o:iette..4a,,,Wtotwe:.? pterittgpperationsarccontinued from the!rasedPremisesor onacreagepooled , communitiud or unitised therewith.In the is drilled andcompletedon the Leased Premises, or,m the lands pooled ceunittzedoruahtudtherewith,forthepurpose developing aid eerations' and "capable .producing gas" shall mean, to addition to those matters covered in th; preceding paragraph: (1) operations of said wells to remove water or other substanres from the coalbed, or to dispose of such wateror other substances, even tlwrgt such operations der not result m the production of hydrocarbons in paying quantities, or (2) shutting -in orotherwise discontinuing production from said wells to allow fat surface or underground mining affecting the drtlir re welllrore. 2. This is a PAiD-IJP LEASE. !n consideration of the down cash payment, Lessor agrees that Lessee shall vot be obligated, except as o116:r herwise provided berein, to con.mence err continu,; any operations during the primary tens. Lessee may a[ any time Fit during or after the primary term surrender this lease as to all or any portiwr of One Leased 1'remtses and as to any strata or stratum by delivering to castor or by filing for record a release or releases, and be ref Lever aF all obligation feafter accruing as to the acreage surtendered. 3. in consideration of the i eased Premises the said Lessee covenants and agrees: 1 To dali�er to the credit of Lessor free of cost, to the pipe line to which Lessee may connect wells on the Leased Premises, the equal one -sixth (1/61 part of all oil produced and saved from the Leased Premises. .O To pay lasso: an gas and casinghead gas produced from the teased Premises (I) when sold by Lessx, otne-sitith (1/6) of the net proceeds realized by Lessee from such sate or (2) when used by lessee off the leased Premises or in the manufacture of gasoline or other produ;u, the market t•alue, at tin: wellhead, of one sixth (1/6) of such gas and casing,. gas, Lessor's interest, in either case, to bear ono-sdxth of the rut of compressing, dehydrating and ofd cos a treating such gas or casmgherJ gas to render it marketable or usable and one -sixth (1/6) of the cost of gath�:ri-tg and transporting such gas and ca<inghead gas Tema the wellhead to the point of sale or use. 3i° To pay I wane for gas produced from any oil weal and used off thel.eased Premises •or to the manufacture of gasoline or an; outer product a royalty of proet. att.. wellhead, payable monthly at the prevailing market rata 4'�' in-j1:24):1115ies on producon ereunder, Lesser may deduct Lessor's proportionate part of arty ad valorem, productim and excise taxes. 4. leer the= tam[ one or mare wells on the I. i'd• Premises ir lands pooled P'Tnaitized or untuod therewith are ig'b of producing oil err gas or other ubs! meet anvered hereby but such well or wells are either shut in or production therefrom is not being sold by Lessee, including dewatering of coalbed gas, such weal or wells shall nevertheless be deemed to be producing for the purpose of main.ming this lease. If for a period of ninety (90) coase.tive days such well or wells arc shut in or production therefrom is not sold by Lessee, including dewatert goof coalbed gas, the lessee shall pay an aggregate shut in royalty of one dollar per acre then coveted by this lease, such payment to be made tv et, on or before the anniversary date of this ]ease ;next ensuing after the e;p iretiov of the said ninety (90) day period and thereafter on err before each anniversary of date of this lease while the well or wells are shut in err production therefrom s not being sold by lessee, Wol t eel that ri this leaser is in du primary term or otherwise being maintained by operations, or if productmn is being sold by Lessee Sum another welt on the Leased Premises of itmds ptnoled, ,wmmunrtOr5 or unitized therewith, nn shut-in royalty shall be due until end of the next fallowing Lessee „able drte of thin lease [bat cessation of such operabcurs or production occurs, as the case maybe. Lessee's failure to properly pay shut-tn royalty shall render Lessee liable for the amount due, but shell not operate to terminate this lease. said Lessor owns a less interest m the Leased Premises than the entire and undivided foe simple estate [herein, then the royalties (including any shut- in royalty) herein provided fbr shalt be paid the Lessor Doty in the proportion which Lessor's interest bears to the whole and undivided i'ce. 6. Lessee shall slit the right to use, free of cost, gas, all and water produced on the !.eased Premises for Lessee's operation ther.t, 7. When requested by essor, t.essce shag bury lessee's pipe litre below plow depth. 8. No well shall be drilled nears than 200 feet to the house or berm now on the Leased Prerrtises without written consent of Less x. 9, lessee shall only ptry for damages caused by Lessee's operations to growing crops on the !.eased Premises. I0. t.essee shall have the right at any time to remove all machinery and fixtures placed on the Leased Premises, including the right to draw and remove casing. 11. The rights of Lessor and Lessee hereunder maybe assigned in whole or part, by area and/or ...... and the rights 11,',' obvgations of the pants, 1:=0:11 ereunder shall- extend to their respective hehs, devisees, executors, administrators, successorsand assigns. No change in ownersp of Lessor's interest (by assignment or otberwise) shall have the effect of reducing the rights or enlarging the obligations of Lessee hereunder, and no change in ownership shall be. binding on Lessee until sixty (60) days after Lessee has been famished with notice, covs[sting of certified cwpies of all recorded instruments or documents and other fortnatioo necessary m establish a campfeh chain of record title from castor to the satisfaction of Lesscq and then only with respect m paymertts !hereafter made. No other kind of naieq whether actual nr constructive, shall be binding on lessee. No present or future division of Lessor's ownership as to .1,71, patinas a parcels of the Leased Premises shall operate to enlarge the obligations or diminish the tights of Lessee, and alt Lessee's operations may be condur.Ked without rogard U7 any ;ach division. In the event of death of any person entitled to shut-in mye(ties hereunder, lessee may pay orcodersuch shw-in royalties h the credit of decedern or de, eshue. If ar any time two or more persons are emtded to shut-in royalties heramdx, !.eaten may pay orcarder such shut-in royalties to such persons eitltu de, eft a err separately m proportion to the ivaerast which eacdt owns. if lessee traasfas a assigns its interest heretmder in whole or in part 1.c arc sbae be relieved of all obfint " • er6 eeil.- erismg with respect to the transferred interest, and failtae of the transferee to satisfy such obliQatiobe with respect to the transferred mtetest shall not affect the tights of Lessee with respect to any interest not so transferred. If Lessee transfers a 6dl or undivided meeest in all or arty poor of the Lease Premises, the obligation m pay or tender shut-in royalties !meander shall be divided between Lessee and the transferee in proportion to the net acreags i merest in this lease then held by each. 111111111111iIIIII111111IiI111111111111IIi 11111IIIIIIII 3692776 05/12/2010 0206P Weld County, CO _ 12. Lessee, to addition ro the right to use the leased Premises to develop lands onside the !.eased Premises, at its option is hereby given the right and power at arty time and from time ro time as a retorting right, either before or after prodoctiort, nt ro an or any part of the Leased Premises and as ro any ate or more of the formalions hee ter to pool, tom trIe or untrtt the leasehold estate erns the remora! estate covered by this leffie whh other land, lease or leases m the imattediare vicinity fa the purity on of oil and gas, or separately for the production of either, when th Lessee's jnd�rnent it is necessary or advisable ro do so, and irrespective of whether authority similar Yo this exists with respect ro such other land, lease or lases. Likewise, utters preciously formed ro mrdude formations not producing oil or gas, maybe reformed to ode. such non-produang formations. The forming a relent., of arty unit, pooled area or communi.ed area shall be accomplished by Lessee exceed, and filing of record a declaration of such ...ion, pooling or co nnumtvstiat or relomration, which declaration shall describe the rent' pontes area or connmtwtized area unit, pooled area or cotmtunitittd area may include land upon whist a well rat= as therero2,1=1;°:11% ore bcen completed or upon which operations for drilling have tereoforo barn cammenad. Productia, drilling, dawateaing a reworking operations or a well slut-i,, for want of a marks anywhere on a unit, pooled area of commune . area which inch this all or a part of this lease shall be treated as if it were production, dnlgng c.a.'. or reworking operations or a well shut-in for want of a market under. lase. In lieu of the royalties elsewhere herein specified, "..ding shut-in gas royalties, Lessor shall receive on production from the unit, pooled area or eommuni.ed area, royalties only on i. portion of such production allocated to this lease such allocation shall be that proportion of the unit, pooled area or commrmitized area production thot the total number of surface acres covered by this lease acrd 'included to the unit, pooled area or communidzed area bears ro the total number of sutfeoe acres in such tmtt' pooled area number: cwnnrnonitittd area or as prescribed in such rmit'mg or Cnmmurtitnation agreement. In addition to the foregoing, Lessee shall have the right to unititt, communitio, pool or combine all or any part of the L Pct sea as to one or more of the formations thereunder with other lands in the same general area by entering in. a cooperative or writ plan of development or operation approved by gm'emmaaal authority and, from time to titre, with hke approval, to modify, change or temilnale a, such Van: agreemea sad, in such event, the terms, conditions and provisions of this lease shall tie deemed modified ro conform to the toms, conditions, and provisions of such approved cooperalive or ante plan of development or operation and, particularly, all drilling and development requirements of this lease, express or emptied shall be satisfied by compliance with the drilling and development requirements of such plan oragraemen , and this lease shall not terminate or expire during the life of such planar agree... In the event that the Leased Promises or any part thereof, shall hereafter be oaerated coder my such cooperative or umt plant of pent mrnt or opennton whereby the prethrehoo therefrom is allawaed ro diiTereM portiere of the land covered y sand plan, that gee production atlocaced to eery particular tract of land shall, for the purpose of computing the royalties to be paid hereon. to Lessor, be regarded as having been produced from the particular train of land to which it is allocated and not ro any other tract of land: and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shag formally express Lessor's consent ro say pooled area, commonitiaed area, cooperative or unit plats of development or operation adopted by Lessee and approved by arty governmental agency by executing the same upon request of Lesser. 13. Any.. in this lease to the contrary notwithstaod,tg, Lessee's obligations under this tease shall be subject to all applicablelaws, rotes regulations and orders of any goverttmenW authority having jurisdiction, including restrictions on the drilling and production of wells, and regulation of the pritt or transportation of ail gas or other substamx covered hereby. When drilling, reworking production or other operations or obligations under this tease are ptevemsd or delayed by such laws, rules, regalations or orders, or by mobility ro obtain necessary parries, equipment' services macriat, water, electricity, fuel, access or easements, or by enact of God strike, Icekout' or other industrial disturbance, act of the public envy, war blockade, public riot, lightening fire, storm flood or other act of nalae, explosion, governmental action, gwetmrrental delay, restrain or inaction, or by inabthty to obtain a satisfactory market for productiay or failure of purchasers or carriers ro take or transport such production, or by arty other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonably within control of Lessee, this lease shag not terminate because of such prevention or delay, and, at Lessee's option, the period of such prevention or delay shall be added to the term hereof. Lessee shall not be liable for breach of. movrston or implied covenants of this lease when dn7 m produce. or other operations are so 14. No lfti on shalt be initiated b Lessor for prevented or delayed. al least 90 � by damages, forfeiture or cancellation with respect to any breach or default by lessee hereander, for a period of days alter lessor has given Lessee written notice fully describing the breach or default, and then only of lessee fails to remedy the breach or default within such trine period In the event the matter is litigated and there is a final judicial determination that a breach or default has occurred, this lease shall not be forfeited or cancelled in whole or m pan unless Lessee is given a reasonable time alter said judicial determination to remedy the breach or default and lesser fails to. so. 15. Lessor hereby warrants and agrees to defad the title to the leased Premises, and agrees that the lessee shall have die right at any time to redeem for Lessor, by payment, any mortgagor, tortes or other hens on the I end ppremise , in the event of default of payment by lessor and be robrogated to the rights of the holder thereof, and the ntndersrgoed Lessors, for themselves and their hales, successors sad assigns, hereby surreinder and release all right of dower and homestead in the leased Premises described herein, insofar as said right of dower and homestead may in :nay' other the purposes for which this kale is made as recited herein '1'17.'11= f Lessee .'11 any such lien, lessee may recover any amour expended ore of Lessor royaltiesor shut-tn royalties. 16. Should arty one w mole of the parties heroinabove named as Lessor fail ro execute this lease it shall neviKltdess be binding upon all sock parties who do execute it as Lessor The word "Lessor,^ as used 'err this lease, shall mean any one a more or all m the parties who execute this lease as lessor. m the provisions of this lease shall be biadimg on the heirs, successors acrd assigns of lessor and leaSee. 17. If Lessor, doing the primary tarot of this lease, receives a bona fide offer from a third party ro purchase from lessor a lease covering an or all of the substances coveted by this lease and covering all or a portion of the leased Premises, with such lease l become tffective upon expimtion of this lease, which Lessor Ys willing ro accept from the offering party, Lessor hereby ro notify [er inT 2 of said offer immediately, including in the notice the name and address of the offeror, the price offered and erg other pertinent tams conditions of the offer Lessee, fora period of fiRem (1 S) days after the receipt ofthe rwtitt, shall have the priorand preferred right and option ro ptrchase the lease or pan thereof or interest therein covered by the offer at the price and on the terms and conditions in the offer. All offers made up ro and including the last day of the primary tent of this lease shall be subjett ro the terrrns and cortditians of this paragtaQh. Should Lessee elect to purchase the lease pursuant to the terns hat it shall so notify lessor in writing by mail, telefax, or telegram prior ro expiration of sad fifteen (15) day period Lessee shall promptly theea®er furnish ro Irssar the new lease for execution by Lessor,ions with Lessee's sight draft (or check) payable to Lessor in payment of the specified amount as considerarton for the new lease, such draft, if applicable, bents subject to approval of title so ord'mg ro the temrs thuaof. Upon receipt thereof, lessor shall promptly execute said lease and return sauce along with the draft to lessor's bank of record fur payment 18. In the evert this lease is not continued beyond the pornary term by the provisions herein contained, lessor hereby agrees that Lessee, at it's sole option, cats renew this lease far an additional primary tens eaf three") bm (3) years from the 261h day of Mar he 20j3 and m long thereafter as oil and gas or either of than is produced from said land, said renew,! ro be under the aterms and conditions as contained in this lease. Lessec may exercise this option ro renew by tendering to Lessor al the last Imown address the amount of S.per net acre (as bonus and paid -up rentals), on or before the a& day oft..., 20 . IN WITNESS WHEREOF, this instrument is executed as of the date first above written. X Carolyn T meson, also i con as Carolyn J. Thompson, Individually, and Attorney -in -Fact for Howard Thompson, also known as Howard W. Thompson, husband and wife STATE O COUNTY O Mendo2 no BEFORE ME, the Carolyn Thom , a Notary Public, m as Caroiva d Thom ) )§ said a. l CKNOWLEBGMENT mty and Stale, on this day of Mvidaally. sad Attorney ad for Howard lb 2010, personally appeared Howard W. Thomosoa, husband and wife, ro to be the identical . 'hod in and who executed th tlnin and foregoing iostrament ofjNfitin 5Pnd acknowledged to me that 2n duly executed the as hg free and voluntary act . • --. for the uses and purposes sal tads IN WITNESS W e hereunto set my hard ; : ed my notarial seal the tyfy and y2r<r last above written My Commission . ices ' 25/11 Notary Public Address: P . O. Box 14 4 5 Fort Bragg, ,A 95437 i 1111111111111I111111111111111111111111 III 11111 Ills IIII 3692775 05/12/2010 02:06P Weld County, CO 3 of 3 R 16.00 D 0.00 Steve Moreno Clerk & Recorder ACKNOWLEDGMENT State of California County of Mendocino On May 4, 2010 ) before me, Anne Pardini Ruprecht (insert name and title of the officer) personally appeared Carolyn Thompson who proved to me on the basis of satisfactory evidence to be the person(s) whose nerne(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature CIAr[}i(Seal) rANNEPARD&iRIw0eCNn Commission 1770434 Notary Public • California J Mendocino County Re: Oil and Gas Lease 4136429 08/25/2015 01:56 PM Total Pages: 4 Rec Fee: $26.00 Carly Koppes - Clerk and Recorder, Weld County, CO Rad icere Id(PaMLUII) BC Rev. 10114 PAID -UP OIL AND GAS LEASE VHSAGRE9utENT(6asIdse).«uasandelteedi.this25dayoJanuary.2015,byandbetweanRearden Minerals, LLCwhoss address is 5914 W. Courtyard Dr . Suite 200, Austin, TX 78730 (teas,) (whemer one a more, and Bonenaa creek Energy Operating company tLC whose address b 410 1Y'Straat, S. 1400, flamer, Cciorado80202, (•Lessee, WITNESSE114: te consideration..caaln bonus In herd paid and the covenants contLessor hereby grids, demises. leases and lets amlusivety uto Lessee the lands desaibed ...the p the purpose d..sti., pa eirg, rig, angering (bygaophyaieal and olhr meenods, adiWor d stir sad pnaxkdkg o1 or gee. a ban (as deiced bob", togadsr'Lehi theright b conslmct and m ianan pipelines. telephone area ebcbk roes finks pads, roadways 9ble dseP nt, area al "tins. th".°' and anyotiner bra itias needed ordesin'e m produce. Bit" hest praxes, alas transport a mrket the subat y so described above and est proddts tlhere al debardrfved from the same or otherteads and the eadudye right to blject di , gas, osier, brine and other from arty soiree into the subsudax stmt.... al aeerdghhs sad privileges nuecessary, Incident b. aca"ankm for ecarortrical tipmadon d sold hand. alone or cooloMWy with naghbodnp ternd fa the prodrncdon savhg sad taking ears of. and gas and ee Injustice of air, gas, water. bane. and oenr fluids khb the subrudace spite said lards bekg sduated in the county d Weld Stab d Coloradodescr@ed as follows, hawk Township 6 North, Range 62 West of the 6`h PM Section 4: SW/4, S/2SE/4 Containing 240 acres, more or kiss. subject to d eahtieg easements and dg4lsrof "ay of record, and hednNpr referred to as the' Leased Prembu, In addition the land desatbed above, Lessor thereby brats, leases one lee excl.rely unto Lessee, to the same exert as O s.. aly described, lads which are owned or darned by lessor by one d the Mining neiag reasoner (1) all lands and sighs acquired or retained by Lessor by avulsion. accretion, reaction or .erve r as the renal of a change In the boundaries a cater. of ay river or stream travadng or adjoining the Was deseruTad above: (2) all riparian lads and rights .chi area may be incl., appurtenant, related er.beted to Lessor in any lake, stream or dyer t oversing or adjoining the lards described above by virtue d Lessor's ownership d the and described above; (3) al lands included in any road, easement or right otiway have g or adjoining the .is described above rttdn we or maybe incident. app rte am, related or attributed to Lessor by *ha d Lessor's ownership d the lard described above; and (4) a1 ships or traps of lard adjacent or contiguous to ea lends desofied above arced or acquired by Lesser through adverse possession or sera simbr.ties of is stale in which the lards are located. In addition to the lard described above, in the event Lessor shall ad. any additional interest In and to the Leased Premises while tits Lease is in fie ioroe and effect ahxxrdng to the terms herds, then such aftemadred Inbar. anal became a partdthis Lease and subject to der terms and provisions hereof, however, subject to any existing base on suds tebrest. AN the provisions d this Lease stall tie binding on Ms heirs. successors and assigns d Lessor and Lessee. 4. The fights granted b Lessee or its agent, assignees, permitted or ca k:sods hereunder shall b dude the right of ingress and egress On the Leased Promises or lends pooled or unitised there., along .1 aunt dghisd-way and easements as may be reasonably necessary to conduct operations M exploring. developing, producing and marked, of and gas. inckdkig but not.ked to geophysical °predons. the drilling of wells, and the construction are use of toads. canals, pipeGes., Lamle. osier was, disposal was. Injection wells, pis, dalk ..phone Gres, power stations, and titles facades deemed necessary by lessee to explort discover, produce, sore, toast .for transport d and gas and water produced from the teased Premises or tinier lands ..re central fadWes all weld. opeded with the Lease for gatring, batkg, compression and water disposal. Lessee may use in such operations. free of cod any oil. gas, wear and. odes substances produced on the Lased Premises, except water from Lassoes web or ponds. In expo.. developig. producing or marks drg torn Ore Lased Phentses or lands pooled or unitised therewith. M archery rights granted herein sfal a. (a) to the tam Lease, releitista dig any partial release or other partial temtralion sifts Lase: and (b) to ray oOsr lands in dichlessa newer he.ter has authority to gram sum rights in the vicinity dthe Leased Pre.ses or tends pooled or unitized diens., 5. The team oa es used in Ohs Lease shall be interpreted to include any squid hydrocarbon substances wltdr occur naturally In the earth, including drip gasoline or anther nodal condensate recovered from gas wilnoaa resort io mai deduirg process. The term gas as used in the Lase shall be frterpreted to Ind. any subsides, ether combustible ornon-cembusllbit.cn Is poducert in a nodal side from the earth all which mantsns a gaseous or radfiea state at ordinary tempera. and pressure conditions, inducting but not limited to .um, nitrogen, carbon dioxide. hydrogen sulphide, real bed methane gas rasieghsad gas and siphon. Subject to tie other provisions teas a oatakied, this Lase shall remain in free fora term of One 1. year from Jenny 25. 2015 (herein called 'pan' any Se,') and as long dnereaa as oil and gas, or either of them, Is produced from the Lased Premises or from Inds pooled or anises with this Least or d ling operadaa are c ousfy prosecutes or tits Lease is otherwise mana.In effect pursuant to the provisions hereof. For purposes dads Lease. a well competed for the production of coalbed mass gas shell be deemed to be producing gas ardr this Lease at al lases when dew., or the coal seams from which the teamed methane gas. be produced. occurring. For purposes dthis Lassa 'Writing opera0ane slap andude operations for the damp of a new well, any act preparatory b railing. all opranoas for the reworking, deepening orplug , back alas. or hob mother optade a °aductea in an effort to estebish, resume or reeslabish producgon of of and gas: ding operations shall be candle' red to be 'troraM oasfy proseekled" d not more tea1 one hundred twenty (120) days shad aaese behveen to completion and ...need sod or hob and the commencement caddie. operations on another wet a hole: drilling operations shad be deemed m be commenced fora rims wee at such dmears Lessee has be, the construction ofthe well. oeatlan a the mad Bich prrwtdes access to the welt. MaeaX and driinng operations del be deemed to be commenced web respect to reworking, diapering, plugging bad or a0aroperaions conduct. in an effort lo resume a keestabish production of tie and gas at such time as Lessee has 9e dd., equipment for such operati..the ...e. 7. Fora. d rdgd d. we physically produced from the Lased Premiss . or Inds pooled. Wiva or eomnwattiesd Oerowitt. sold. Lessor shall mode as is myaty ,,,'94 of the sales proceeds eau received by Lessee or. N applicable. its Miele. as a resat of the fist sale of the affected production b an uatiiabed party, less this same percentage share of al post production tests and Ohs same percentage share old prod.on. severance and ad valorem taxes. As used in this povbkr4postprodudioncosts analmedal se 5dduaryInosredbyt.esseeaits...aadalbaresofproddedvolumesshs5ebytrueasfuel.insloss,frarhg. yentas or ethane from and aPoer the wellhead to the poem of sale. These costs include. out limitation, a1 costs d gadarlg. mak.. compression, dehydration, ...nation, removal of aq.1orgaseous substances or impurities from the affected production, and try other treatment a processing required by the fast unalilletedpry who purchases de affected prod... For noyalycakstaean purposes, Lessee steal never bs required to adjust the seies poceeds to accost for the purchaser's cone a Barges.mstram ...re d sale. Lessee or its sedme shad have the right to construct, maintain and operate try facilities providkg some or al of the services idsnWed as post produdlan costs. O tits maim, the..il ash d such teaks shall bel.tried bee post produdon costs as a per enrol a per rid... as appro.. adulated by spreading the construed* . mddenrsce and operdi g costs for such lacities oar the reasonably estimated total produdon domes .b table to the wee a walls using such faeiiss. If Lessee uses the oil and gas (other than as fud In mmecBon wan the production and sans thereof) in emu of receiving sate proceeds, the pa:e b be used under this proybioe shall be based upon reYdength adds). rrdeiated parties for the sepiabb month flat are sSedbb, corderatte t terns ofgaity and quest and in doses) polo. b the Lease. Suds comparable amt's -tenon sake price staff be tress any post produdon costs app.. to the specific arm'.nottidowaction Oat bufPmed. Thisb e pat . Lana and all cash consideration ..fed above and annual rentals have bean paid b Lessor in advance to keep Mb Lase In ai faro end Oedehroug..* primary term. In co sidra0on of the papa. a . d suds ash cons... and advance amuah rentals. Lessor ogress eat Lessee shat nib bib obligated except as.rwtse provided berate.10 commence a continue a any a .lions dodo the primary tens Lessee awry et. time a times ding or after the primary term sums. this Lease as to all a arty potion of the end desabed above, and es b try data or aaab, by delved, to Lessor a by NS, of record a rate. a releases, and be radeved dal obligations tiereaRr accruing b sae acreage surrendered. g. My payment required b be made to Lasso pursuant.. Lease Bha0 be pad by Lessee to ee Lessor AN such payments maybe made by rash. dseak a area. meiad a delivered on or Liebe she der dpi for del payment. Any payments so made shat be binding on the heft, devisees, executors. ad trisfrakrs, aha personal rep ms d Lessor and on Lessor's successors in interest or on Lassoes assigns. 10. If, at the expiration d be pansy tern d this Lesae. at a gas b not being produced tram the Lased Premises but Lead b then engaged in drilling operations. this Lease shat continka k knee se long as drilling eperetiens are continuously prosecute. ad if production doe ceps a reacts from any such ddig °pennons, this Lease shalt continue is force a long as oil or gas .1 be prodded from the Lased Remises. IL after to expiration d ee pansy term of. Lase, production on the Leased Premises should cease for anry cause. Ohs Lase shat not tem.. if Lessee b than engages in dd . operations, a within one tended twenty (120) days after =such. cessation d predation coennorhces a resumesant operatics, and Voleese shall roman in torte so lag as.i g operations are co Limo. prcs.ed. and Po55e au as dsgast an, then a lag threafterasoi a gas b pmdhread fm the traced'D55es 4136429 08/25/2015 01:56 PM Page 2 of 4 11. if Lessee ddc a weti which d bhitidy incapehr d Moduchp. paying clued des on the Leased Remises or Inds pooled a unitized thmmeth, aril ail production (whether a not in paying menace) permanently ceases from any cause. induci g a revision d unit boo lades pursued to the provfsons d this Lease u the action of any groan . authority. ten in the avail this Lease.. otenwise being msLtaered in force it shall nmerthdess remain in force t Lessee commences fur. operations for reworking an adding well or. drilling an addle. walla for otherwise obtaining or rest.ng production on the Lea. Premises or lands pooled a uela' eel t e e It h within 90 days altar completion d operations on such will a whin ninety (90) days after such aYSSOton of at production. If after the primary term tie Lease is not otherwise bring maintained in force but Lasses r .n.....1 operations as defined below. rhla lease shall remain in force so long as any one a more d such operations are prosecuted silk no bdemap ion d more than ninety (90)eanse .. days, and ff... operations reanft in the production d d and ............ ""r" mere le 'dui' b payfrhg Ouanhia nom the Leased Remises a hands pooled a =herewith Afra camplaiorh d a well capable d producing n paying quantities Feuer r" Lessee shat di sudh addllk' wets on the Leased Premiss a Weds palled a nmitimed therewith as a reasonably prided operable world dell under the same or emits . Leoittanas to (a) develop the Leased Remises as to reseneirs then capable of producing in paying ghmrddes on the Leased Remises or lands pooled m unitized there... or (b) protect fe Leased Promises from u compereadd drainage by am. or.3 boated on other lands not pooled a unfazed therewith. There shall be no covenant to drill embed., weds or any additional wets except as expresidy provided herein. As used heroin, the term operations shall mean any *didtycorducted on or of the Leased Premises that r reasonably akuated ...sin or restore procl.0n, including without timitaton. (0 tiring a any set peiPe!e ay W dritiing (ouch as obtaining pen.. animate a del air. std. a dui ails. build. roads. dosing a dole see, a Mull g p.n.s a ...mareworking, t DDi^D beds. deeperirg. treating, atimnfayng, refitting, Waling any angel tin or p�erf equipment or technique; (i) Mae.... related Uo the praductiorh. lroarhertt banapataton and modretinD d substances produced from the Leased Promise. (iv) cantraeting for marketing services and ear of all and gas•, an.. nd (v) oorabnactlond water disposal faciaties and the physical movement ofwater produced Gorr the Leased Remises. 12. geed the printery tam. this Lease Is being maintained solely by she a more oats on the Leased Remises, or rands pooled a untiaed:honest., • that are capable of pnpduang of and gas in paying quantities, but such well ors. are either shutdrm or production therefrom is not being sold by Lessee. such welweand navertekss De deemed be produncrg In paying quantities for the purpose of mongering Otis Lease. If fora pedal d rimy (90) consecutive days such wet or web are shut-in or production nrrdrom is not sob by Lessee. that Lessee std pay an aggregate shut-in sopadoe drtear (S1.00) ...oral ate the ncoverod by this Lease. The payment shall be made to Lessor on a before to fist anniversary dated the Lease following the add the NneM (90) day period and tereafta on a before each anniversary.. the well cc .is are.blet or production therefrom la not being sold by Lett. provided Thal a this Lease is other. being maahtaired by operations under this Lease. a t production is being sold by Lessee from another well a wets on the Leased Remises or Whoa pooled a urtitaed thaererniah. rho staaHn royally std be due uteri the first anniversary tar d to Lease folow. the end d the ninety (90) day period after the ell d the period nerd...Ong the cessation d such aperasahs or production, as der case maybe. Lessee's fail. to properly pay shut-in royally shall render Lessee table for the amount due, but she' not operate to tenhinate Stirs Lease. 13. If Lessor owns a lesser barest b the above described lad than ahe.fie and uniated fee simple estate Iheein, then the royalties, inducing shutin royalty. here. provided shall be paid b Lessor only in the proportion vach L essors .rest bees to the whole and udivkled fee. Any interest In production from de lands described heroin to.ch the interest of Lessor maybe subject std be deducted from the royally herein reserved. 14. Lessee shall pay to Lessor reasonable armours for damages caused by its operations lo growing crops and pasture on said ...When requested by Lessor. Lessee shall tarry ee pipelines whidh traverse cuitivard lards below plow depth. No wet shall be dried rheas tan two hundred (200) feet to a house a barn now on said Leased Premises without writer anserf d Lessor. Lessee and have the night at arty time (but rat the MZ:raon), b remove se improvemems, machinert, and fabaes placed or erected by Lessee on said Leased Premises, Indudirg the right b pull. remove casings. 15. Lessee r hereby given the right and poser at arty time and from time b time as a racurntng right. either before or after production. as to d a any fart of the Lease and as b any one a more tithe fonnetions h reader. to pod or.ize the leasehold estate all the.erai estate covered by this Lease with other land, lease or teases In the amedide vieWty. fa the production dal and gas, a separately for the production d ether, when in Lessee, ja dgmem it. necessary or advisable b do so. and irrespernive of sharer authority similar tD this exists with respect to such other laird. lease or trues. Llkewiee, .ts previously formed to include tom.. not poduckg tit a gas maybe reformed to exclude such nonsrodudng bmatons. The touring a (de mirg of any oft std be accomplished by Lessee erecting .filing of record a declaration d such unitization or reforrr s. , which deeaadon shat desaibs the unit Any uhe may Ind. I. upon which a soli. henetofae been completed or upon with drilling operations have been commenced. Predation, drilling or resod. operations a a wee enable any reason anywhere on a unit which inndudes at a a pert of this Lease and be treated as a i were production, dying or rework'. operators or a wet.. under this Lease. M taut d the royalties set forth n this Lease. Lessor stall receive on production from the aria so pooled royalties only on the potion of such production allocated to this Lease; such aloauon elan be that proportion of the emit production that the total number of surface aaas covered by this Lease and inckded n the unit bears to the total number d surface acres in such unit ie. Lessee shat have the right to unitize, pod, a combine al or any part d the Lease as to one or more of the formations thereunder with other lads In the same general area by entering into a coops.. a unit plan of devabparent or operation approved by any govern.. autbfy and, from time to time, with ice approval, to modify. charge a terminate . y such plan or agreeme n and. in such event, the tams. matrons, and provisions of as Lease shall be leaned modified to carom to the terra, connitions. and provisions of such approved aoperadve or rill plan of ...anent or operation and pariaiay. ati dilly and deelapmdi requirements of this Lease, express a imp. shall be sanded by camplance wiz to doling and development regnirements d such plan or agreement, and thh Lease she' not laminate a expire durkg the life of such plan or agreement. In the evert that the Lease cc any pat thereof and herealter be operated oiler any such cooperative, or unit plan...mint dewiopmi t or operation wtareby the production tarofmm is e'ocated to ataeM portions of the land covered by the phn. then the produchn afocated to a+Y particular tract d lard shag. for the purpose of computing the royalties to be paid b Lessor, be regarded as having been produced from the particular tract of Wd tow'. t is allocated and not to any other tract of land: and the royalty payments to be made hereunder o Lessor shall be based upon production only as so allocate. lithe ester of either pay to. Lease le assigned or sublet, and the privilege of assigning or adding in whole or b par. expressly allowed, the express ..pied covenants hereof std added to the sublessees, successors and assigns of the pare. and in the event of an assignment or sublets g by Lessee, lessee shell be relieved and discharged b the Leasehold rights so assigned err sublet from any tabtity to Lessor thereafter accruing upon try of the covaants a conditions d this Lease, .0. express a inpled. No charge In armors 0 of the land, royal . or andr pay... however acamptished. shat operate to enlarge the obligations or dimhish the rights d Lessee or require separate measuring or lns[dalion d separate tanks by Lessee. Notwithstanding any aduai or cons. ve knowledge d a notice to Lessee, no large in ownership of. land or of the right to receive royalties a other payments hereunder. a of arty Interest therein, %tedw by reason of death. conveyance or any other matter, std be binding on lessee (except at Lessee. option in any gentian case) unit one handed twenty (120) days a ter Lessee has been bashed written notice thereof, all the supporting information hereinafter reined to, by the party dabag as a result of swat change In ownership a interest. Such notice sad be supported by ord. and anted coeds d doasrents and other numerate a proceedngs necessary in Lessee, opinion to estabish the ownership of the olalming party. 1T. In to interest d conserv.. the protection d reservoir pressures and recovery of the greatest.nate yield Moil andkc gas. Lessee shall have the right to combine the Laded Premises will caw lama in the same general area fa the purpose of mera.g aril maintaining repro wring and recycling facilities, and tar such purpose may locate such fealties. ihckrdng.. ads, upon the Lease. and no royalties shall be payable hmereurda upon any gas used for cep essurirg and rcydbg operations benefieng the Leased Premises. 1e. Lessees obligations under this Lease, whether express a Implied, add be sublet to all app. -able mss, nees. rogriaf+ons ad orders d arty governmental audodty having jurisdiction, inciudfntg reselctons on the drilbg and production of wets, and regulation of pro pile a transportation of W, gas and oter sobatanees covered hereby. When drll.. ans.., production a 0tw operations are prevented a delayed by such laws, rules, regulators or orders. or by khablky to obtain necessary peen. equipment, sank.., material, warn, erdricit . Gat, access or easements. or by fire. flood. adverse weather cond.... sabotage. rebellion. insuetecian, dot. ski. a labor dm.. a by inability to o.n a satisfactory market for prod.. ord.. of purchasers a a.rs to take a tranapaa such production, a by any other ease rot reasonably Merin Lessees control. Mrs Lease sled not terminate because d such prevention or deices and. at Lessee, option, the period of such preverdan a delay shall be added to to term hereof. Lessee she. not a fat. for breach of any provisions or implied oov.nants of Mrs Lease adorn ddling. production or other operations are so prevented or delayed 19. in the event Lassa coraidens Nat Lessee has not candied with d its oblgakrs hereunder. eater express or imp. Lessor std noty Lessee in aribhg, seeing out specdicdy ern respects Lessee has.acred tie Lease Lessee std ten have ninety (90) days alter m..0f. d said notice w.on which b meet a cgnnanheance b meet d a any part d the breades alleged by Lessor. The savke d acid notice std be precedent t0 time brerr9ing d amt action by Lessor err said Lassa to amp cause, and ne auah salon shall be brcrphd rata the lapse of ripely (90) days after sanke of such notice on Lessee. Ndter to adys d said nosoe nor Una deft d any acts by Lessee aired to meet d or any d to alleged broaches she' be deemed an admission or presunplbn that Lessee has hied b perbmh d ig obligations thereuder. 20. No Negation shall be mailed by Lessor for damages, fafalure or cenaladnn with rasped to any broach a default by Lessee hereunder, far a p.. d at asset ninety (9D) days after Lessor has given Lessee written notice Gliy descibing the breach or demerit and then only if Lessee fats to remedy the breach a deform Main such period. In the event the mallet ie liagated and there is a lard judicial determination that a breach or default tea occurred, ifs Lease shall nil be forfeited or arcked In.. or n part unless Lessee Is given a reasonable time after said judidd date minston to remedy to breach or ddaul and Lessee fags bo do so. 21. Lessor hereby warrants and agrees to defeat. to to Leased Premises hereunder, and agrees that Lessee, at Lessees option, may pay and dbchape any taxes, mortgages a Ions eds.. levied a assessed an a soak. all Leased Premises. If Lessee ere... such option, Lessee shall ins suhrogated to the rig. of the party to dem haeuda. to .sor n event L pawned fie made aware d try ',consistent nth h essa, title Lessee may emend payment W . nude. and. in addition to its other eights. may reimburse aself out of any royalties orNre.. and shot.royalroyalties othemise cetiseheramde .rout into., until Lessee has been famished satisfactory evidence tea such Gain has been resolved. 22. Lessee vAt Irmdanrfy and Feld Lease. as suoeeaors and aasilpa tarrmhbss from any and e' claims, Oarnanhds. amts, bases, damapea, and aster (Including, wfllhout Wrhiadon. try storey fees) ineured by the Lassa which may be asserted aganst the Leases by ration d or which may arise out d or winch nay be Page 2of4 4136429 08/25/2015 01:56 PM Page 3 of 4 nslabed to Lessee's 1gNitles on the leased Premises lihdudIn6, without limitation, any claims by any owners or Lessees d minerals that Lessees operetlors hereunder are eitlsr,lleyal, u autlrorMsd, or constitute an improper interference salt theirdgNs). 23. This lease and ell provisions thereof shall be applicable b Bed binding upon the pares and link respective success= and assigns. Mine. herein b Lessor and Lessee shall Include reference to their rupee. successors and assigns. Should any one or more dine parties named above es Lesson net execute this Lease, it shall nevertheless be binding upon the party or parties executing the same. 24 Lessee shell here the rtsh , b. not the oblgabon, to extend this Lease. a period of three (3) years commencing etthe eagiretlon ofthe IN d primary NMI. Lessee may exercise tNs option b eudend the primary term d the Lease by paying to Lessor at any time beIrxe the expiration d the primary tam an additional bonus considers. In the smou t agreed to In wrtiing by the Pastes at le time ofexecution of this Lease. 25. Lessee is sainted the tight. heed cost or charge, b use od. gas or bolt produced Iron the Leased Premises for dreg. and praducewn operations; including, but rot pmhed b gas-ifl operations necessary. The royalty payable under the terms d this Lease shag be calculated after deducting the oil. gas or both used by Lessee in opera.o s on the leased Premises. 28. With respect b and for the purpose of Ns Lease. Lessor. and each of them if Mare be more than one. hereby release and waive the ti.S of homestead. INDIVIDUAL ACKNOWLEDGEMENT STATE OF COUNTY OF the persona:le .' bed In. Dana who executed the toregoi g Insbtarnent wd whw me mac Pit h etrecu the scone as anew tree as anted deed. io be IN WITNESS WHEREOF. I have hereunto set my hand and affixed my notarial Seel do day and year lest arbors written. Sly commission cashes: Notary Fads fw the State of o< onaligaPseared LIST OF EXHIBITS Exhibit "A" - AD0DENDUM TO OL AND GAS LEASE Page 3of4 4136429 08/25/2015 01:56 PM Page 4 of 4 ADDENDUM TO OIL AND GAS LEASE Notwithstanding anything to the contrary contained in the lease to which this Addendum is attached, the provisions of this Addendum shall be applicable. 27. It is agreed between Lessor and Lessee that notwithstanding any language herein to the contrary, all oil, gas or other proceeds accruing to the lessor under this lease or by state law shall be without deduction for the cost of producing, gathering, storing, separating, treating dehydrating, compressing, processing transporting, and marketing the oil, gas and other products produced hereunder to transform the product into marketable form; however, any such cost which result in enhancing the value of the marketable oil, gas or other products to receive a better price maybe deducted from Lessor's share of production so long as they are based on Lessee's actual cost of such enhancements. However, in no event shall Lessor receive a price that is less than, or more than, the price received by Lessee. Page 4 of 4 Amended Exhibit C — Whitetail DSU To Bison Sandy Bay OGDP Application BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF BISON IV OPERATING, LLC FOR AN ORDER TO AMEND ORDER NO. 407-1217, WHICH ESTABLISHED AN APPROXIMATE 1,280 -ACRE DRILLING AND SPACING UNIT FOR SECTIONS 4 AND 9, TOWNSHIP 6 NORTH, RANGE 62 WEST, 6TH P.M., TO APPROVE REDUCED SUBURFACE SETBACKS AND ADDITIONAL FORMATIONS, WITHIN AN APPROXIMATE 4,196 -ACRE "SANDY BAY" OIL AND GAS DEVELOPMENT PLAN FOR THE NIOBRARA, FORT HAYS, CODELL AND CARLILE FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO AMENDED APPLICATION CAUSE NO. 407 DOCKET NO. 231200360 TYPE: SPACING COMES NOW Bison IV Operating, LLC (Operator No. 10670) ("Bison" or "Applicant"), by and through its attorneys, Jost Energy Law, P.C., and respectfully submits this Application to the Energy and Carbon Management Commission of the State of Colorado (the "Commission" or "ECMC") for an order to amend Order No. 407-1217, which established an approximate 1,280 - acre drilling and spacing unit for the below -described Application Lands ("Whitetail DSU"), to approve reduced subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same common source or formation, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable, and to add the Fort Hays and Carlile Formations for the production of oil, gas and associated hydrocarbons from the Niobrara, Fort Hays, Codell and Carlile Formations within the below -described Application Lands. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a limited liability company duly organized and authorized to conduct business in the State of Colorado and is a registered operator in good standing with the Commission. 2. Applicant is an "Owner" as defined by the Oil and Gas Conservation Act and COGCC Rules, and owns leasehold interests or holds the right to operate on the following lands (hereafter "Application Lands"): Township 6 North, Range 62 West, 6th P.M. Section 4: All Section 9: All Approximately 1,280 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 A reference map of the Application Lands is attached hereto. Page 1 of 7 3. With this Application, Bison is providing a copy of an Oil and Gas Lease for at least one portion of a mineral tract within the Application Lands showing the Applicant's status as an Owner in accordance with ECMC Rule 303.a.(1). See Exhibit B, submitted with the Sandy Bay OGDP Application. 4. On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The Application Lands are subject to this Rule for the Niobrara and Codell Formations. Effective January 15, 2021, Commission Rule 318A was moved to Rule 402 and modified to have no effect on future operations and development in the Greater Wattenberg Area. However, Rule 402.c states that any wellbore spacing units established prior to January 15, 2021 will remain in effect unless the applicable Form 2s, if any, expire without spud. 5. On April 4, 2011, the Commission entered Order No. 535-12, which, among other things, established an approximate 640 -acre drilling and spacing unit for Section 9, Township 6 North, Range 62 West, 6th P.M., and approved one horizontal well within said unit, for the production of gas and associated hydrocarbons from the Niobrara Formation. 6. On May 16, 2011, the Commission entered Order No. 535-15, which among other things, pooled all non -consenting interests in the approximate 640 -acre drilling and spacing unit established for Section 9, Township 6 North, Range 62 West, 6th P.M., effective as of the spud date of the Degenhart 6-62 9-1 H Well (API No. 05-123-32966), for the development and operation of the Niobrara Formation. 7. On June 27, 2011, the Commission entered Order No. 535-37, which, among other things, established an approximate 640 -acre drilling and spacing unit for Section 4, Township 6 North, Range 62 West, 6th P.M., and approved one horizontal well within the unit, for the production of gas and associated hydrocarbons from the Niobrara Formation. The 640 -acre drilling and spacing unit established by Order No. 535-37 for Section 4, Township 6 North, Range 62 West, 6th P.M. was vacated by Order No. 407-1217. 8. On August 8, 2011, the Commission entered Order No. 535-67, which, among other things, pooled all non -consenting interests in the approximate 640 -acre drilling and spacing unit established for Section 4, Township 6 North, Range 62 West, 6th P.M. for the Hoff #6-62 4- 1H Well (API No. 05-123-32956), for the development and operation of the Niobrara Formation. Order No. 535-67 was vacated by Order No. 407-1217. 9. On October 31, 2011 (corrected January 10, 2012), the Commission entered Order No. 407-501, which, among other things, established twelve approximate 640 -acre drilling and spacing units for certain lands, including Section 4 Township 6 North, Range 62 West, 6th P.M., and approved one horizontal well within each unit, for the production of gas and associated hydrocarbons from the Niobrara Formation. 10. On January 26, 2015, the Commission entered Order No. 407-1217, which, among other things, 1) maintained an approximate 640 -acre drilling and spacing unit established by Order No. 535-12 for Section 9, Township 6 North, Range 62 West, 6th P.M., for the existing production of gas and associated hydrocarbons from the Niobrara Formation; 2) vacated an approximate 640 -acre drilling and spacing unit established by Order No. 535-37 for Section 4, Township 6 North, Range 62 West, 6th P.M., for the production of gas and associated hydrocarbons from the Niobrara Formation; 3) vacated Order No. 535-67, which pooled all non - consenting interests in an approximate 640 -acre drilling and spacing unit established for Section Page 2 of 7 4, Township 6 North, Range 62 West, 6th P.M., for the development and operation of the Niobrara Formation; 4) established an approximate 1,280 -acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 5) approved up to eight horizontal wells within the unit; 6) provided that the productive interval of the wellbore will be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit, without exception being granted by the Director; and 7) provided that the proposed wells shall be located on no more than four well pads within the unit, subject to Rule 318A.a., without exception granted by the Director. 11. On January 26, 2015, the Commission entered Order No. 407-1218, which, among other things, pooled all interests in the approximate 1,280 -acre drilling and spacing unit established for the Application Lands for the development and operation of the Codell and Niobrara Formations. Order No. 407-1218 did not apply the cost recovery provisions of § 34-6- 116(7), C.R.S. to non -consenting owners. 12. On January 26, 2016, the Commission entered Order No. 407-1596 which, among other things, subjected all nonconsenting interests to the cost recovery provisions of §34-60- 116(7), C.R.S., for the drilling of the Whitetail 21-4-9XRLNB Well (API No. 05-123-41166), within the approximate 1,280 -acre drilling and spacing unit established for the Application Lands for the development and operation of the Niobrara Formation. 13. The records of the Commission reflect that the following horizontal Wells are producing within the Application Lands in the Niobrara Formation: Well Name API No. Location ID Operator Degenhart #6-62 9-1 H 05-123-32966 421582 Noble Energy Whitetail #A-4-9XRLNB 05-123-46836 440714 Applicant Whitetail #21-4-9XRLNB 05-123-41166 440714 Applicant 14. The Whitetail #A-4-9XRLNB Well (API No. 05-123-46836) is producing in a designated horizontal wellbore spacing unit and will not be affected by the relief requested in this Application. The Degenhart #6-62 9-1H Well (API No. 05-123-32966) is producing in an approximate 640 -acre drilling and spacing unit established by Order No. 535-12 for Section 9, Township 6 North, Range 62 West, 6th P.M., for the Niobrara Formation, which was pooled by Order No. 535-15 and maintained by Order No. 407-1217 and will not be affected by the relief requested in this Application. The Whitetail #21-4-9XRLNB Well (API No. 05-123-41166) is one of the eight Wells authorized by Order No. 407-1217 and pooled by Order No. 407-1596 and will continue to produce and allocate production proceeds in accordance with Order Nos. 407-1217 and 407-1596. 15. Bison will utilize the new Barracuda Oil and Gas Location for the development of seven new Wells in the Application Lands. With this Application, Bison submitted sworn testimony pursuant to Rule 505 regarding the applicable criteria listed in Rule 304.b.(2).B that apply to the proposed Oil and Gas Location. The new Barracuda Pad is subject to the Sandy Bay OGDP Application filed concurrently herewith. 16. Based on the location of the new Barracuda Oil and Gas Location, Weld County is the jurisdiction with siting authority. Bison is concurrently seeking a 1041 WOGLA siting permit from Weld County for the siting and related surface disturbance of the Barracuda Oil and Gas Location. Page 3 of 7 17. Bison anticipates that it will submit an application to pool all interests, including any non -consent interests, within the Application Lands at a future date. Bison owns over 45% of the leasehold interests in the Application Lands, and therefore Bison may pool the proposed Wells in the Application Lands pursuant to the requirements of C.R.S. § 34-60-116(6)(b)(I), subject to the requirement to tender a reasonable and good faith lease offer to all unleased mineral interest owners within the Application Lands in accordance with C.R.S. § 34-60-116(7)(d)(l). 18. The mineral ownership within the Application Lands is in fee and federal ownership. Bison has a Communitization Agreement in place with the BLM (COC 77808) for development of the Application Lands. 19. Bison certifies that the amendment of Order No. 407-1217 for the development of the Application Lands will result in development that will protect and minimize adverse impacts to public health, safety, and welfare, the environment, and wildlife resources and will protect against adverse environmental impacts on any air, water, soil or biological resource in compliance with C.R.S. § 34-60-106(2.5)(a). Bison certifies that its operations in the Application Lands will be conducted in a reasonable manner to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the protection of public health, safety, welfare, the environment and wildlife resources. 20. Bison further certifies that the amendment of Order No. 407-1217 for the development of the Application Lands prevents waste of oil and gas resources, avoids the drilling of unnecessary Wells, and protects correlative rights. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the prevention of waste, the avoidance of drilling unnecessary Wells, and the protection of correlative rights. 21. Bison requests that the spacing order establish subsurface setbacks of 300 feet from the boundaries of the unit and provide that all horizontal wells will be no closer than 150 feet from the productive interval of any other wellbore located in the same formation or common source of supply, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable. The Wells within the Application Lands will be drilled from a north -south lateral orientation. 22. The undersigned certifies that copies of this Application and the Notice of Hearing will be served on each interested party as required by Rules 504.a., 504.b.(2) and 504.b.(6). 23. The granting of this Application is in accord with the Oil and Gas Conservation Act, found at §§ 34-60-101 et seq., C.R.S., and the Commission Rules. 24. Applicant requests that relief granted under this Application should be effective on oral order by the Commission, and Applicant hereby agrees to be bound by said oral order. WHEREFORE, Bison respectfully requests that this matter be set for hearing in accordance with applicable Commission Rules, that notice be given as required by law, and that upon such hearing this Commission enter its order to: A. Amend Order No. 407-1217 to add the Fort Hays and Carlile Formations and to approve subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same Page 4 of 7 common source or formation for the development of the Niobrara, Fort Hays, Codell and Carlile Formations, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable; B. Provide that all new authorized wells will be developed from the new Barracuda Oil and Gas Location located adjacent to the Application Lands, unless an exception is granted by the Director; C. Find that the amendment of Order No. 407-1217 for the development of the Niobrara, Fort Hays, Codell and Carlile Formations will prevent waste of oil and gas resources, avoid the drilling of unnecessary Wells, protect correlative rights, and protect public health, safety, welfare, the environment and wildlife resources; and D. For such other findings and orders as the Commission may deem proper or advisable in this matter. DATED January 11, 2024. Respectfully submitted: Bison IV Operating, LLC By: Applicant's Contact Information: Bison IV Operating, LLC Attn: Bennett Meyer, Senior Landman 518 17th St., Suite 1800 Denver, CO 80202 Tel: 720.370.4228 Email: bmeyer@bisonog.com Jamie L. Jost Kelsey H. Wasylenky Jost Energy Law, P.C. Attorneys for Applicant 3511 Ringsby Court, Unit 103 Denver, Colorado 80216 (720) 446-5620 J iost(a� iostene rgvlaw. com Kwasvlenkya lostenergylaw.com Page 5 of 7 AFFIRMATION Bennett Meyer, of lawful age, being first duly sworn upon oath, deposes and says that he is a Senior Landman for Bison IV Operating, LLC, and that he has read the foregoing Amended Application and that the matters therein contained are true to the best of his knowledge, information and belief. Dated January 11, 2024. nnett Meyer enior Landman Bison IV Operating, LLC Page 6of7 Reference Map Wattenberg Field, Weld County Township 6 North, Range 62 West, 6th, P.M. Section 4: All Section 9: All Approximately 1,280 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 I30 1 29 • • • 0- • • • 0- i 31 C.R. 74 a 32 5 • • • • 18• • • 5- \- • • 17 • • 28 C.R. 79 -÷ 1 • • Barracuda Pad • •4 33 74 4 • • 9 •a @ • • O 27 • 34 • 3 • 16 • i 26 • 2 s 10 6 N621ii i • 14 •641•• Page 7 of 7 Amended Exhibit D — Barracuda DSU To Bison Sandy Bay OGDP Application BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF BISON IV OPERATING, LLC FOR AN ORDER TO VACATE ORDER NOS. 407-642 AND 407-2712 AND ESTABLISH AN APPROXIMATE 1,280 -ACRE DRILLING AND SPACING UNIT FOR SECTIONS 31 AND 32, TOWNSHIP 7 NORTH, RANGE 62 WEST, 6TH P.M., AND AUTHORIZE EIGHT NEW HORIZONTAL WELLS WITHIN THE UNIT TO BE DEVELOPED FROM ONE NEW OIL AND GAS LOCATION ADJACENT TO THE UNT WITHIN AN APPROXIMATE 4,196 - ACRE "SANDY BAY" OIL AND GAS DEVELOPMENT PLAN FOR THE NIOBRARA, FORT HAYS, CODELL AND CARLILE FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO AMENDED APPLICATION CAUSE NO. 407 DOCKET NO. 231200360 TYPE: SPACING COMES NOW Bison IV Operating, LLC (Operator No. 10670) ("Bison" or "Applicant"), by and through its attorneys, Jost Energy Law, P.C., and respectfully submits this Application to the Energy and Carbon Management Commission of the State of Colorado (the "Commission" or "ECMC") for an order to: 1) vacate Order Nos. 407-642 and 407-2712; 2) establish an approximate 1,280 -acre drilling and spacing unit for the below -described Application Lands ("Barracuda DSU") and authorize eight new horizontal wells in the unit for the development of the Niobrara, Fort Hays, Codell and Carlile Formations; and 3) approve reduced subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same common source or formation, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable, for the production of oil, gas and associated hydrocarbons from the Niobrara, Fort Hays, Codell and Carlile Formations within the below - described Application Lands. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a limited liability company duly organized and authorized to conduct business in the State of Colorado and is a registered operator in good standing with the Commission. 2. Applicant is an "Owner" as defined by the Oil and Gas Conservation Act and COGCC Rules, and owns leasehold interests or holds the right to operate on the following lands (hereafter "Application Lands"): Township 7 North, Range 62 West, 6th P.M. Section 31: All Section 32: All Approximately 1,280 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 Page 1 of 7 A reference map of the Application Lands is attached hereto. 3. With this Application, Bison is providing a copy of an Oil and Gas Lease for at least one portion of a mineral tract within the Application Lands showing the Applicant's status as an Owner in accordance with ECMC Rule 303.a.(1). See Exhibit B, submitted with the Sandy Bay OGDP Application. 4. On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The Application Lands are subject to this Rule for the Niobrara and Codell Formations. Effective January 15, 2021, Commission Rule 318A was moved to Rule 402 and modified to have no effect on future operations and development in the Greater Wattenberg Area. However, Rule 402.c states that any wellbore spacing units established prior to January 15, 2021 will remain in effect unless the applicable Form 2s, if any, expire without spud. 5. Rule 401.a. provides that a Well completion 2,500 feet or greater below the surface will be located not less than 600 feet from any lease line and not less than 1,200 feet from any other existing or permitted Well completion in the same common source of supply, unless authorized by order of the Commission or an exception under Rule 401.c is obtained. 6. On June 27, 2011, the Commission issued Order No. 407-559 which, among other things, established two approximate 640 -acre drilling and spacing unit for Sections 31 and 32, Township 7 North, Range 62 West, 6th P.M., and authorized one horizontal well within each unit, for production of oil, gas and associated hydrocarbons from the Niobrara Formation, with the treated interval of any permitted to be located not less than 460 feet from unit boundaries, without exception from the Director, from surface locations consistent with Rule 318A drilling windows. Order No. 407-559 was amended by Order No. 407-642. 7. On May 29, 2012, the Commission issued Order No. 407-642 which, among other things, amended Order No. 407-559 to approve up to four horizontal wells within the 640 -acre drilling and spacing units established for Sections 31 and 32, Township 7 North, Range 62 West, 6th P.M. for production of oil, gas and associated hydrocarbons from the Niobrara Formation. 8. On August 20, 2012, the Commission entered Order No. 407-687 which, among other things, pooled all interests within an approximate 316.37 -acre designated wellbore spacing unit for portions of the Application Lands to accommodate the Wells Ranch AE06-69-1 HN Well (API No. 05-123-35559) for the development and operation of the Niobrara Formation and subjected all nonconsenting interests to the cost recovery provisions of C.R.S. § 34-60-116(7). 9. On July 29, 2013, the Commission entered Order No. 407-843 which, among other things, pooled all interests in an approximate 320 -acre designated wellbore spacing unit established for portions of the Application Lands to accommodate the Wells Ranch AE 05-69- 1 HN Well (API No. 05-123-36980) for the development and operation of the Niobrara Formation, and subjected any nonconsenting interests to the cost recovery provisions of C.R.S. §34-60- 116(7). 10. On December 17, 2018, the Commission entered Order No. 407-2712 which, among other things, amended Order No. 407-559 to include the Codell Formation in the approximate 640 -acre drilling and spacing unit previously established by Order No. 407-559 for Section 31, Township 7 North, Range 62 West, 6th P.M., and approved up to 12 horizontal wells Page 2 of 7 within the unit, including the existing the Crow Valley 7-62-31 2H Well (API No. 05-123-35247), for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. 11. The records of the Commission reflect that the following horizontal Wells are producing (PR) or shut in (SI) within the Application Lands in the Niobrara Formation: Well Name API No. Location ID Operator Applicant Applicant Status Crow Valley 7-62-32 #1 H Crow valley 7-62-31 #2H 05-123-33352 05-123-35247 422674 428129 PR SI 12. Applicant requests that the above -referenced Wells continue to produce and allocate production proceeds, if any, in the approximate 640 -acre drilling and spacing units established by Order No. 407-559 for the Niobrara Formation. 13. The records of the Commission reflect that the following vertical Well is temporarily abandoned (TA) within the Application Lands in the Niobrara Formation: Well Name API No. Location ID Operator Bonanza Creek Status Crow Valley 7-62-32 #1 M 05-123-33198 422253 TA 14. Applicant cannot represent the plans of Bonanza Creek for the above -described TA Well. 15. The records of the Commission reflect that the following horizontal Wells are producing (PR) in horizontal wellbore spacing units overlapping portions of the Application Lands in the Niobrara and/or Codell Formations: Well Name API No. Location ID Operator Status WELLS RANCH AE #06-69-1HN 05-123-35559 428881 Noble PR Wells Ranch AE #05-69-1HN 05-123-36980 428881 Noble PR CROW CREEK STATE AC #36-72- 1HN 05-123-37424 433025 Noble PR CROW CREEK STATE AD #31- 79HN 05-123-37426 433025 Noble PR 16. Applicant requests that the above -described Wells continue to produce and allocate production proceeds, if any, in accordance with their designated horizontal wellbore spacing units. 17. Bison will utilize the new Barracuda Oil and Gas Location for the development of the eight new Wells in the Application Lands. With this Application, Bison submitted sworn testimony pursuant to Rule 505 regarding the applicable criteria listed in Rule 304.b.(2).B that apply to the proposed Oil and Gas Location. The new Barracuda Pad is subject to the Sandy Bay OGDP Application filed concurrently herewith. 18. Based on the location of the new Barracuda Oil and Gas Location, Weld County is the jurisdiction with siting authority. Bison is concurrently seeking a 1041 WOGLA siting permit Page 3of7 from Weld County for the siting and related surface disturbance of the Barracuda Oil and Gas Location. 19. Bison anticipates that it will submit an application to pool all interests, including any non -consent interests, within the Application Lands at a future date. Bison owns over 45% of the leasehold interests in the Application Lands, and therefore Bison may pool the proposed Wells in the Application Lands pursuant to the requirements of C.R.S. § 34-60-116(6)(b)(I), subject to the requirement to tender a reasonable and good faith lease offer to all unleased mineral interest owners within the Application Lands in accordance with C.R.S. § 34-60-116(7)(d)(l). The mineral ownership within the Application Lands is in fee. 20. Bison certifies that the establishment of an approximate 1,280 -acre drilling and spacing unit for the Application Lands will result in development that will protect and minimize adverse impacts to public health, safety, and welfare, the environment, and wildlife resources and will protect against adverse environmental impacts on any air, water, soil or biological resource in compliance with C.R.S. § 34-60-106(2.5)(a). Bison certifies that its operations in the Application Lands will be conducted in a reasonable manner to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the protection of public health, safety, welfare, the environment and wildlife resources. 21. Bison further certifies that the establishment of an approximate 1,280 -acre drilling and spacing unit for the Application Lands prevents waste of oil and gas resources, avoids the drilling of unnecessary Wells, and protects correlative rights. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the prevention of waste, the avoidance of drilling unnecessary Wells, and the protection of correlative rights. 22. Bison requests that the spacing order establish subsurface setbacks of 300 feet from the boundaries of the unit and provide that all horizontal wells will be no closer than 150 feet from the productive interval of any other wellbore located in the same formation or common source of supply, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable. The Wells within the Application Lands will be drilled from an east -west lateral orientation. 23. The undersigned certifies that copies of this Application and the Notice of Hearing will be served on each interested party as required by Rules 504.a., 504.b.(2) and 504.b.(6). 24. The granting of this Application is in accord with the Oil and Gas Conservation Act, found at §§ 34-60-101 et seq., C.R.S., and the Commission Rules. 25. Applicant requests that relief granted under this Application should be effective on oral order by the Commission, and Applicant hereby agrees to be bound by said oral order. WHEREFORE, Bison respectfully requests that this matter be set for hearing in accordance with applicable Commission Rules, that notice be given as required by law, and that upon such hearing this Commission enter its order to: A. Vacate Order Nos. 407-642 and 407-2712; B. Establish an approximate 1,280 -acre drilling and spacing unit for the Application Lands and approve eight horizontal Wells in the unit for the production from the Niobrara, Fort Hays, Codell and Carlile Formations; Page 4 of 7 C. Approve subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same common source or formation for the development of the Niobrara, Fort Hays, Codell and Carlile Formations, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable; D. Provide that all new authorized wells will be developed from the new Barracuda Oil and Gas Location located adjacent to the Application Lands, unless an exception is granted by the Director; E. Find that the establishment of an approximate 1,280 -acre drilling and spacing unit for the Application Lands for the development of the Niobrara, Fort Hays, Codell and Carlile Formations will prevent waste of oil and gas resources, avoid the drilling of unnecessary Wells, protect correlative rights, and protect public health, safety, welfare, the environment and wildlife resources; and F. For such other findings and orders as the Commission may deem proper or advisable in this matter. DATED January 11, 2024. Respectfully submitted: Bison IV Operating, LLC By: Applicant's Contact Information: Bison IV Operating, LLC Attn: Bennett Meyer, Senior Landman 518 17th St., Suite 1800 Denver, CO 80202 Tel: 720.370.4228 Email: bmeyer@bisonog.com Jamie L. Jost Kelsey H. Wasylenky Jost Energy Law, P.C. Attorneys for Applicant 3511 Ringsby Court, Unit 103 Denver, Colorado 80216 (720) 446-5620 J lostalostenergvlaw.com Kwasvlen kvCa),lostenergvlaw.com Page 5 of 7 AFFIRMATION Bennett Meyer, of lawful age, being first duly sworn upon oath, deposes and says that he is a Senior Landman for Bison IV Operating, LLC, and that he has read the foregoing Amended Application and that the matters therein contained are true to the best of his knowledge, information and belief. Dated January 11, 2024. nnett Meyer enior Landman Bison IV Operating, LLC Page 6of7 Reference Map Wattenberg Field, Weld County Township 7 North, Range 62 West, 6t" P.M. Section 31: All Section 32: All Approximately 1,280 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 i 29 21 • • 28 C.R. 79-4 • • Barracuda Pad • pi 33 7a • 9 0 27 r - Page 7 of 7 Exhibit E — Triggerfish DSU To Bison Sandy Bay OGDP Application BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF BISON IV OPERATING, LLC FOR AN ORDER TO VACATE ORDER NOS 407-642 AND 407-2711 AND ESTABLISH AN APPROXIMATE 1,600 -ACRE DRILLING AND SPACING UNIT FOR SECTIONS 29 W'/ AND 30, TOWNSHIP 7 NORTH, RANGE 62 WEST, 6TH P M AND SECTION 25, TOWNSHIP 7 NORTH, RANGE 63 WEST, 6T" P M , AND AUTHORIZE EIGHT NEW HORIZONTAL WELLS WITHIN THE UNIT TO BE DEVELOPED FROM ONE NEW OIL AND GAS LOCATION ADJACENT TO THE UNT WITHIN AN APPROXIMATE 4,196 -ACRE "SANDY BAY" OIL AND GAS DEVELOPMENT PLAN FOR THE NIOBRARA, FORT HAYS, CODELL AND CARLILE FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO APPLICATION (CAUSE NO 407 'DOCKET NO 231200 TYPE SPACING COMES NOW Bison IV Operating, LLC (Operator No 10670) ("Bison" or "Applicant"), by and through its attorneys, Jost Energy Law, P C , and respectfully submits this Application to the Energy and Carbon Management Commission of the State of Colorado (the "Commission" or "ECMC") for an order to 1) vacate Order Nos 407-642 and 407-2,'7 11, 2) establish an approximate 1,600 -acre drilling and spacing unit for the below -described Application Lands ("Tnggerfish DSU") and authorize eight new horizontal wells in the unit for the development of the Niobrara, Fort Hays, Codell and Carlile Formations, and 3) approve reduced subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same common source;or formation, unless authorized by Rule 401 c or Rule 408 u (1) as applicable, for the production of oil, gas and associated hydrocarbons from the Niobrara, Fort ,Hays, Codell and Carlile Formations within the below - described Application Lands In support, of its Application, Applicant states and alleges as follows 1 Applicant is a limited liability company duly organized and authorized to conduct business in the State of Colorado and is a registered operator in good standing with the Commission 2 Applicant is an "Owner" as defined by the Oil and Gas Conservation Act and COGCC Rules, and owns leasehold interests or holds the right to operate on the following lands (hereafter "Application Lands") Township 7 North, Range 62 West, 6th P M' Section 29 W% Section 30 All Township 7 North, Range 63 West, 61h P M' Section 25 All Page 1 of 7 Approximately 1,600 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 A reference map of the Application Lands is attached hereto. 3. With this Application, Bison is providing a copy of an Oil and Gas Lease for at least one portion of a mineral tract within the Application Lands showing the Applicant's status as an Owner in accordance with ECMC Rule 303.a.(1). See Exhibit B, submitted with the Sandy Bay OGDP Application. 4. On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The Application Lands are subject to this Rule for the Niobrara and Codell Formations. Effective January 15, 2021, Commission Rule 318A was moved to Rule 402 and modified to have no effect on future operations and development in the Greater Wattenberg Area. However, Rule 402.c states that any wellbore spacing units established prior to January 15, 2021 will remain in effect unless the applicable Form 2s, if any, expire without spud. 5. Rule 401.a. provides that a Well completion 2,500 feet or greater below the surface will be located not less than 600 feet from any lease line and not less than 1,200 feet from any other existing or permitted Well completion in the same common source of supply, unless authorized by order of the Commission or an exception under Rule 401.c is obtained. Section 29 of the Application Lands is unspaced and subject to Rule 401.a. for the Niobrara, Fort Hays, Codell and Carlile Formations. 6. On June 27, 2011, the Commission entered Order No. 407-559 which, among other things, established seven approximate 640 -acre drilling and spacing units for certain lands, including Section 30, Township 7 North, Range 62 West, 6th P.M., and approved one horizontal well within the unit, for production of oil, gas and associated hydrocarbons from the Niobrara Formation, with the treated interval of any permitted to be located not less than 460 feet from unit boundaries, without exception from the Director. 7. On May 29, 2012, the Commission entered Order No. 407-642 which, among other things, approved increased horizontal well density from one to four wells in the approximate 640 - acre drilling and spacing unit established by Order No. 407-559 for Section 30, Township 7 North, Range 62 West, 6th P.M., for production of oil, gas and associated hydrocarbons from the Niobrara Formation. 8. On November 15, 2012, the Commission entered Order No. 407-732 which, among other things, pooled all interests within the approximate 640 -acre drilling and spacing unit established for Section 30, Township 7 North, Range 62 West, 6th P.M., and approved cost - recovery against any nonconsenting owners pursuant to §34-60-116(7), C.R.S., for development and operation of the Niobrara Formation, to accommodate the Crow Valley 7-62-30 2H Well (API No. 005-123-35250). 9. Also on November 15, 2012, the Commission entered Order No. 407-738 which, among other things, pooled all interests in three approximate 320 -acre designated wellbore spacing units overlapping portions of the Application Lands for the Carmichael 26M-223 Well (API No. 05-123-35113), the Carmichael 26R-203 Well (API No. 05-123-34709), and the Carmichael 26U-243 Well (API No. 05-123-35078), for the development and operation of the Codell and Page 2 of 7 Niobrara Formations, effective as of the earlier of the date of the Application, or the date that any of the costs specified in C.R.S. § 34-60-116(7)(b)(II) were first incurred for the drilling of each respective well, and subjected any nonconsenting interests to the cost recovery provisions of C.R.S. § 34-60-116(7). 10. On December 17, 2018, the Commission entered Order No. 407-2711 which, among other things, amended the approximate 640 -acre drilling and spacing unit established by Order No. 407-559 for Section 30, Township 7 North, Range 62 West, 6th P.M., to include the Codell Formation, and approved an additional eight horizontal wells, for a total of up to 12 horizontal wells, within the approximate 640 -acre drilling and spacing unit established by Order No. 407-559 for Section 30, Township 7 North, Range 62 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. 11. The records of the Commission reflect that the following horizontal Wells are producing (PR) or shut in (SI) within all or a portion of the Application Lands in the Niobrara Formation: Well Name API No. Location ID Operator Applicant Applicant Status Crow Valley 7-62-30 #2H Crow valley 7-62-31 #2H 05-123-35250 05-123-35247 428129 428129 PR SI 12. Applicant requests that the above -referenced Wells continue to produce and allocate production proceeds, if any, in the approximate 640 -acre drilling and spacing units established by Order No. 407-559. 13. The records of the Commission reflect that the following horizontal Well is (PR) in a horizontal wellbore spacing unit overlapping portions of the Application Lands in the Niobrara and/or Codell Formations: Well Name Carmichael #26U-243 API No. 05-123-35078 Location ID 426494 Operator PDC Status PR 14. Applicant requests that the above -described Well continue to produce and allocate production proceeds, if any, in accordance with its designated horizontal wellbore spacing unit. 15. Bison will utilize the new Triggerfish Oil and Gas Location for the development of the eight new Wells in the Application Lands. With this Application, Bison submitted sworn testimony pursuant to Rule 505 regarding the applicable criteria listed in Rule 304.b.(2).B that apply to the proposed Oil and Gas Location. The new Triggerfish Pad is subject to the Sandy Bay OGDP Application filed concurrently herewith. 16. Based on the location of the new Triggerfish Oil and Gas Location, Weld County is the jurisdiction with siting authority. Bison is concurrently seeking a 1041 WOGLA siting permit from Weld County for the siting and related surface disturbance of the Triggerfish Oil and Gas Location. 17. Bison anticipates that it will submit an application to pool all interests, including any non -consent interests, within the Application Lands at a future date. Bison owns over 45% of the leasehold interests in the Application Lands, and therefore Bison may pool the proposed Wells in the Application Lands pursuant to the requirements of C.R.S. § 34-60-116(6)(b)(I), subject to the Page 3 of 7 requirement to tender a reasonable and good faith lease offer to all unleased mineral interest owners within the Application Lands in accordance with C.R.S. § 34-60-116(7)(d)(l). The mineral ownership within the Application Lands is in fee. 18. Bison certifies that the establishment of an approximate 1,600 -acre drilling and spacing unit for the Application Lands will result in development that will protect and minimize adverse impacts to public health, safety, and welfare, the environment, and wildlife resources and will protect against adverse environmental impacts on any air, water, soil or biological resource in compliance with C.R.S. § 34-60-106(2.5)(a). Bison certifies that its operations in the Application Lands will be conducted in a reasonable manner to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the protection of public health, safety, welfare, the environment and wildlife resources. 19. Bison further certifies that the establishment of an approximate 1,600 -acre drilling and spacing unit for the Application Lands prevents waste of oil and gas resources, avoids the drilling of unnecessary Wells, and protects correlative rights. With this Application, Bison submitted sworn testimony pursuant to Rule 505 supporting the prevention of waste, the avoidance of drilling unnecessary Wells, and the protection of correlative rights. 20. Bison requests that the spacing order establish subsurface setbacks of 300 feet from the boundaries of the unit and provide that all horizontal wells will be no closer than 150 feet from the productive interval of any other wellbore located in the same formation or common source of supply, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable. The Wells within the Application Lands will be drilled from a east -west lateral orientation. 21. The undersigned certifies that copies of this Application and the Notice of Hearing will be served on each interested party as required by Rules 504.a., 504.b.(2) and 504.b.(6). 22. The granting of this Application is in accord with the Oil and Gas Conservation Act, found at §§ 34-60-101 et seq., C.R.S., and the Commission Rules. 23. Applicant requests that relief granted under this Application should be effective on oral order by the Commission, and Applicant hereby agrees to be bound by said oral order. WHEREFORE, Bison respectfully requests that this matter be set for hearing in accordance with applicable Commission Rules, that notice be given as required by law, and that upon such hearing this Commission enter its order to: A. Vacate Order Nos. 407-642 and 407-2711; B. Establish an approximate 1,600 -acre drilling and spacing unit for the Application Lands and approve eight horizontal Wells in the unit for the production from the Niobrara, Fort Hays, Codell and Carlile Formations; C. Approve subsurface setbacks of no closer than 300 feet from the boundaries of the unit and no closer than 150 feet from the productive interval of any other wellbore producing within the same common source or formation for the development of the Niobrara, Fort Hays, Codell and Carlile Formations, unless authorized by Rule 401.c or Rule 408.u.(1) as applicable; Page 4 of 7 D. Provide that all new authorized wells will be developed from the new Triggerfish Oil and Gas Location located adjacent to the Application Lands, unless an exception is granted by the Director; E. Find that the establishment of an approximate 1,600 -acre drilling and spacing unit for the Application Lands for the development of the Niobrara, Fort Hays, Codell and Carlile Formations will prevent waste of oil and gas resources, avoid the drilling of unnecessary Wells, protect correlative rights, and protect public health, safety, welfare, the environment and wildlife resources; and F. For such other findings and orders as the Commission may deem proper or advisable in this matter. DATED December 1, 2023. Respectfully submitted: Bison IV Operating, LLC By: Applicant's Contact Information: Bison IV Operating, LLC Attn: Bennett Meyer, Senior Landman 518 17th St., Suite 1800 Denver, CO 80202 Tel: 720.370.4228 Email: bmeyer@bisonog.com Jamie L. Jost Kelsey H. Wasylenky Jost Energy Law, P.C. Attorneys for Applicant 3511 Ringsby Court, Unit 103 Denver, Colorado 80216 (720) 446-5620 Jiost(a�iosteneraylaw.com Kwasylenky B iostenergylaw.com Page 5 of 7 AFFIRMATION Bennett Meyer, of lawful age, being first duly sworn upon oath, deposes and says that he is a Senior Landman for Bison IV Operating, LLC, and that he has read the foregoing Application and that the matters therein contained are true to the best of his knowledge, information and belief. Dated December 1, 2023. nnett Meyer enior Landman Bison IV Operating, LLC Page 6 of 7 Reference Map Wattenberg Field, Weld County Township 7 North, Range 62 West, 6th P.M. Section 29: W% Section 30: All Township 7 North, Range 63 West, 6th P.M. Section 25: All Approximately 1,600 -acres, Weld County, Colorado. Nearby Public Crossroads: C.R. 74 & C.R. 79 14 13 23 24 17 • 9 • 20 i 16 21 • ENE a • 7O 2 • • • • • • • • • .11$ • • 4-11 • • _11 12 Ali • • 1; is 1 • 30 2 31 C.R. 74 32 • • • • • 6 Triggerfish Pad D4 28 � CR. 79 it o i • •-• OEM 33 74 • • • �� _ • • - -- • • • • • • • • • 22 27 • 34 4 • • • • 9 3 • Page 7 of 7 Exhibit F 0BiSON OPERATING LLC VIA E-MAIL June 30, 2023 Bison Operating, LLC Mr. Jason Maxey Director of Weld County Oil and Gas Energy Department and Local Government Designee Weld County Department of Planning Services 1402 N 17th Avenue Greeley, Colorado 80631 RE: COGCC Rule 302.e.: Notice to Relevant Local Government Sandy Bay North Oil and Gas Development Plan Application Barracuda Pad: SWSW Section 33, Township 7 North, Range 62 West Triggerfish Pad: NWSE Section 29, Township 7 North, Range 62 West Weld County, Colorado Dear Director Maxey, 518 17'Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 In accordance with the requirements of Rule 302.e. of the Colorado Oil and Gas Conservation Commission* (COGCC), this letter serves as Notice to Relevant Local Government by Bison Operating LLC (Bison) for Bison's intent to file the Sandy Bay North Oil and Gas Development Plan (Sandy Bay North OGDP). The Sandy Bay North OGDP includes two well pads that include associated facilities. Bison, as operator, estimates operations to begin, starting with the construction of the first pad, within the 2nd quarter of 2024. The second pad is estimated to being construction within the 2nd quarter of 2025. Subsequent phases of construction including drilling, completion, productions and interim reclamation are as indicated on the attached Description of Operational Phases, pending receipt of required permits, approval of title, and drilling rig availability. Bison is not requesting any variances pursuant to Rule 502 for this application. As an entity with standing per COGCC rules, you may request a meeting to discuss the proposed operations by contacting Bison or the COGCC; a Contact Information list is provided herein for your reference. Information sheets regarding the procedural steps involved with the Director's and Commission's review of Oil and Gas Development Plans; the Commission's public comment process and the relevant deadlines; Hydraulic Fracturing Treatments; and how the public may view the status of the proposed Oil and Gas Development Plan application on the Commission's website are enclosed for your reference. If you should have any questions regarding this request, please feel free to contact the undersigned. *Effective July 1, 2023, the COGCC is named the Energy and Carbon Management Commission (ECMC) BjSON OPERATING LLC Thank you for your consideration of this matter. Respectfully, Katie Gillen Director of Environmental and Regulatory Affairs Enclosers: Bison Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Description of Operational Phases Contact List COGCC Information Sheet about Procedural Steps COGCC Information Sheet about the Public Comment Process and Deadlines COGCC Information Sheet about Hydraulic Fracturing Treatments COGCC Information Sheet about How the Public May View the Status of the Proposed OGDP tif BjSON OPERATING LLC Bison Operating, LLC DESCRIPTION OF OPERATIONAL PHASES COGCC Rule 302.e.: Notice to Relevant Local Government Oil and Gas Development Plan Application Sandy Bay North OGDP Barracuda Pad: SWSW Section 33, Township 7 North, Range 62 West Triggerfish Pad: NWSE Section 29, Township 7 North, Range 62 West Weld County, Colorado 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 The Sandy Bay North oil and gas development plan application encompasses two (2) locations. The planned Barracuda Pad will have fifteen (15) wells and a production facility in SWSW of Section 33, Township 7 North, Range 62 West. The planned Triggerfish pad will have eight (8) wells and a production facility in NWSE of Section 29, Township 7 North, Range 62 West. Both are to be constructed upon approval of required County, State and Federal permits, estimated in the attached schedule. Operations at the proposed drill site typically will begin with construction of the site and will include leveling the pad to accommodate the drilling rig. Once the pad construction is completed, drilling rig equipment will be brought onto location and rigged up. Drilling operations, which run twenty-four (24) hours a day until completed, will commence after the rig is "rigged up". The surface holes will be drilled to approximately 1900 feet using fresh water. Surface casing will then be run and cemented to surface to protect any shallow fresh water zones. Surface casing setting depth is determined from subsurface ground water maps prepared by the State Engineer and supplemented by the latest data available from offsetting wells. The cement is allowed to set, and well control equipment is installed and tested. After about 8 hours of waiting on cement and installing well control equipment, a drill bit is run into the hole to drill the intermediate portion of the well into the potential oil and gas bearing formations. The wells will be drilled horizontally. The wells will be turned or steered such that a curve will be drilled to approximately 90 degrees or parallel to the surface of the ground. The typical vertical depth for the wells is approximately 6,000-8,000 feet below ground level and the length of the horizontal leg will be approximately 2 miles long. The total Measured Depth (MD) of a typical well in this project is approximately 17,000 - 20,000 feet. Once the horizontal section of the wellbore is drilled, a string of production casing will be run into the wellbore. This casing will be cemented into place to isolate the productive zones of the reservoir. Bison's drilling rigs are equipped with a closed loop system. The drilling rig will be on location for approximately six (6) days per horizontal well. At the end of the drilling phase, the drilling rig will be moved off location. The completion phase begins when the drilling equipment is transported off the location. Completion operations are conducted twenty-four (24) hours per day over a period of several weeks. The site may be bladed and leveled to accommodate the completion rig and anchors may be set for the completion rig. Additional operations including cementing, drilling and logging may occur as circumstances require. For horizontal wells, multiple fracture stages are induced along the length of the wellbore in the respective formation into which the well has been drilled. During hydraulic fracturing, water is pumped at high rates and pressures that exceed the minimum in -situ rock stresses and hydraulically fracture the formation. Sand is then pumped into the created fracture to allow gas OPERATING LLC 111 BISON Bison Operating, LLC 51817' Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 and oil to flow freely from the formation into the well bore. The fracturing equipment will consist of one Modular Large Volume Tank (MLVT) for fresh water storage, multiple flowbacktanks, pressure pumps, blending and bulk material trucks with other necessary equipment. After fracturing is completed the mobile equipment is removed. No water is allowed to accumulate or be disposed of on surface. All water is hauled to approved disposal sites or recycled for stimulation use. The production equipment for these wells will be located adjacent to the wells. Typical equipment will consist of oil and water tanks constructed within berms comprised of steel rings with a synthetic or engineered liner, separators, vapor recovery and emission control equipment, gas compressors, meters, flowlines, and proposed electrical and/or solar equipment. The location will include automation equipment that allows operators to remotely monitor pressures, rates, temperatures, valve positions and tank levels. Once production commences, a Bison employee or contractor will monitor the location on a regularly scheduled basis. These inspections are done as a routine part of the lease operator's job. They conduct a visual inspection of the facility which includes all valves, fittings, wellhead, tanks, vapor control systems and all connections. The lease operator reports the tank measurements of the oil, gas sales, and pressure readings. Much of this production information is compiled and submitted to the COGCC on a monthly basis. In addition, the lease operator will inspect the site for hazards and weed control, maintaining the safety and appearance of the Pads. The anticipated lifespan for the proposed well(s) is 30 years. Once a well is determined to no longer be productive and/or economic, a plugging rig will remove production equipment and plug the productive zone(s) with a combination of bridge plugs and cement plugs. Surface equipment no longer needed will be removed. Final surface restoration will involve removal of any above -ground casing and the installation of regulation markers that will not interfere with subsequent surface use. Remaining disturbance will be restored to the original grade and reseeded in compliance with COGCC and Local Government rules and regulations and in accordance with surface owner's future land use plans. The expected travel routes for the proposed oil and gas locations are as follows: Barracuda: Highway 382, then east on Weld County Road 74 approximately 4 miles, then north a couple hundered feet along lease road to proposed location. Triggerfish: Highway 382, then east on Weld County Road 74 for approximately 4 miles, then north approximatley 1 mile along lease road to proposed location. The duration of construction, drilling, and completion activity is estimated to be between 3-4 months (see Table 1: Proposed Development Schedule below). During this "active operations" phase, vehicle traffic will include passenger cars and pickups, semi-truck/trailers, and tandem truck vehicles. The number of round trips per day expected for each vehicle during active operations is summarized in Table 2: Estimated Traffic during Active Operations below. The highest traffic volumes are expected during the first two days of and the last two days of both drilling and completions operations. Traffic will intentionally be highest during daylight hours to mitigate noise and dust during non -working hours. BjSON OPERATING LLC Table 1: Proposed Development Schedule PHASE OF DEVELOPMENT Duration Bison Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Barracuda Triggerfish Estimated Start Dates Estimated Start Dates Construction Drilling 20 days +/- 6+/- days per well Q2 (June) 2024 Q3 (July) 2024 01 (March) 2025 Q2 (April) 2025 Completions (Prep and Frac) 3+/- days per well Q4 (October) 2024 Q2 (June) 2025 Flowback (Drill Out and Flowback) 5 -10 days +/- Q4 (November 2024 Q3 (July) 2025 Production Ongoing (30 years +/-) Q4 (December) 2024 Q3 (August) 2025 Interim Reclamation 20 - 30 days +/- 01 (February) 2025, weather permitting Q4 (November), 2025 weather permitting 0BiSON OPERATING LLC Table 2: Estimated Traffic (roundtrips/day) during Active Operations Bison Operating, LLC 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Phase of Development # of Vehicle Roundtrips (per day) Passenger car equivalent roundtrips (per day) Construction Phase: earthwork of pad/facility & access road (20 days +/-) Passenger Vehicles(�) 10 Single Unit Trucks1�1 2 Multiple Unit Trucks131 25 — 30 TOTAL roundtrips per day = Drilling Phase (50 - 95 days +/-) Passenger Vehicles(1) Single Unit Trucks(2) Multiple Unit Trucks131 TOTAL roundtrips per day = Completion Phase (30 - 55 days +/-) Passenger Vehicles(1) Single Unit Trucks(2) Multiple Unit Trucks131 TOTAL roundtrips per day = Flowback Phase (5 —10 days +/-) Passenger Vehicles(11 Single Unit Trucks(2) Multiple Unit Trucks(3) TOTAL roundtrips per day = 10 4 90 42 104 12 -15 3-5 3-5 15 10 15 25 40 20 2-3 20 to 120141 20 6 60 - 360 43 —143 86 — 386 5 2-3 20 5 6 60 28 71 Production/Operations Phase (ongoing for life of well, assuming facility is tied -in to distribution/collection system) Passenger Vehicles(1) 2 2 Single Unit Trucks(2) 0 0 Multiple Unit Trucks131 0 0 TOTAL roundtrips per day = 2 2 11) Passenger Vehicle: < 20'; gross vehicle weight 4,500 — 8,500 lbs (Source: CDOT State Highway Access Code [SHAG]) 01 Single Unit Truck: 20' — 40'; gross vehicle weight 10,000 — 20,000 lbs; = 2 passenger car equivalents (CDOT SHAG) t31 Multiple Unit Truck: <40'; gross vehicle weight: 50,000 — 70,000 lbs; = 3 passenger car equivalents (CDOT SHAG) '1 Multiple unit truck volume during completion phase dependent upon water transport options, i.e., temporary layflat line vs. trucking water to location. OPERATING LLC 0 BISON Bison Operating, LLC CONTACT INFORMATION COGCC Rule 302.e.: Notice to Relevant Local Government Oil and Gas Development Plan Application Sandy Bay North OGDP Barracuda Pad: SWSW, Section 33, Township 7 North, Range 62 West Triggerfish Pad: NWSE Section 29, Township 7 North, Range 62 West Weld County, Colorado er Opator Bison IV Operating LLC Katie Gillen Director Environmental & Regulatory Affairs 51817th Street Suite 1800 Denver, Colorado 80202 720.644.6997 Ext. 6-8 kgillen@bisonog.com 51817th Street, Suite 1800 Denver, CO 80202 Phone: 720-644-6997 Fax: 303-974-1767 Local Government Designee Mr. Jason Maxey Director of Weld County Oil and Gas Energy Department and Local Government Designee Weld County Department of Planning Services 1402 N 17th Avenue Greeley, Colorado 80631 970.400.3579 oged@weldgov.com Colorado Oil & Gas Conservation Commission* Colorado Oil and Gas Conservation Commission Ms. Julie Murphy, Director 1120 Lincoln Street, Suite 801 Denver, Colorado 80203 303.894.2100 https://cogcc.state.co. us/#/home *Effective July 1, 2023, the COGCC is named the Energy and Carbon Management Commission (ECMC) a 4 COLORADO Oil & Gas Conservation Commission Department d Natural Resowccs COGCC INFORMATION SHEET: PROCEDURAL STEPS FOR THE COMMISSION'S REVIEW OF OGDPs (As required by COGCC Rule 303.e.(2).C) Why am I receiving this information sheet? Oil and gas operating companies ("Operators") are required to obtain approval of an Oil and Gas Development Plan ("OGDP") from the Colorado Oil and Gas Conservation Commission ("COGCC") prior to undertaking any new operations such as drilling oil and gas wells or building oil and gas locations. When an Operator submits an OGDP application to the COGCC for consideration, and the application has been received and is deemed complete, COGCC staff begins a formal technical review of the application materials, and a public comment period starts. COGCC has prepared this information sheet to inform the public of the procedural steps involved with the Director's and Commission's review of an OGDP, so that the public is informed and may participate in the review process if they choose. As part of the process, Operators must provide this information sheet to certain recipients, like yourself, that include mineral owners within the area of proposed development and all landowners, homeowners, commercial property owners, tenants, and other entities within 2,000 feet of an oil and gas location proposed by a pending OGDP application. What is an Oil and Gas Development Plan (OGDP)? An OGDP is an Operator's plan to develop oil or gas resources ("minerals") from one or more surface locations. Operators prepare an OGDP and associated application materials, consistent with the requirements of COGCC Rule 303, and submit the plan for approval through the Commission's Hearings process. The application materials include a hearing application; one or more Form 2A, Oil and Gas Location Assessments; a Form 2B, Cumulative Impacts Data Identification; and a Form 2C, OGDP Certification. The application may also include a request for the establishment of one or more Drilling and Spacing Units ("DSUs"). The OGDP, along with its associated supporting documents, will be heard at a public hearing where the Commission will make a final determination to approve or deny the OGDP application. What are the procedural steps involved with the Director's and Commission's review of Oil and Gas Development Plans? 1. OGDP application is submitted: Operator/ Applicant submits a complete OGDP application with all supporting documents. The written portion of the application is submitted to the COGCC hearings unit via the eFilings system, and Forms 2A, 2B, and 2C are submitted to technical staff via the eForms system. (See Rules 303 Et 304) 2. OGDP application is received: The COGCC hearings unit reviews the written hearing application, assigns a docket number for the OGDP, and provides public notice for the hearing. (See Rules 303 £t 504) 3. Completeness determination: The COGCC technical staff and Director review the application materials for completeness. When deemed complete: a. the OGDP application materials are posted on COGCC's website; b. the Operator provides notice (including this information sheet) to relevant persons; c. the public comment period begins; d. the formal consultation period commences as applicable (including relevant/ proximate local governments and other agencies such as Colorado Parks and Wildlife ("CPW") or Colorado Department Page 2 of Public Health and Environment ("CDPHE")); and e. COGCC staff begin their technical review of the OGDP components. (See Rule 303). 4. Director's review of application (technical review): COGCC technical staff conducts the technical review of all application materials to ensure compliance with COGCC Rules, ensure the protection of public health, safety, welfare, the environment, and wildlife resources, and to evaluate potential Cumulative Impacts. The technical review includes analysis and assessment of: a. DSUs and protection of mineral owner's correlative rights; b. proposed surface locations and alternative locations; c. downhole and engineering considerations; d. best management practices; e. public comments and recommendations provided by consulting agencies; f. financial assurance; and g. the need for conditions of approval. (See Rule 306) 5. Director's recommendation: Once the Director has reviewed the application materials, the Director provides a written recommendation to the Commission in support of the approval or denial of the OGDP application. The Director will post the recommendation on COGCC's website, notify relevant parties', and submit it to the COGCC hearings unit in preparation for hearing. (See Rule 306.c) 6. Commission's consideration and final action (public hearing): The Commission receives the 1 Parties who receive this information sheet will not necessarily be included in the notice of the Director's recommendation. Parties who make a public comment on the Form 2A and include their email address will receive the notice of the Director's recommendation. Director's recommendation of the OGDP and begins review of the OGDP with support from the COGCC hearings unit. The review includes all supporting documents, written testimony, public comments, consulting agency recom- mendations, and Director's recommendation. The Commission considers the OGDP at a public hearing, which may include oral testimony provided during the hearing. The Commission makes a final determination and presents its findings in a written order based on the evidence in the record; the Commission's order to approve or deny the OGDP application is final. (See Rule 307) Where can I get additional information? For more information about the COGCC administrative hearing process and OGDPs, please refer to the COGCC website at http://cogcc.state.co.us. You may also contact the COGCC at d n r. ogcc@state. co. us or 303-894-2100. Please note, COGCC staff are not available to provide legal advice. COGCC recommends that you engage an attorney with knowledge of oil and gas matters to assist you with reviewing any offers you receive from an oil and gas operator or other person. Version 1.0 March 9, 2021 4 COLORADO Oil & Gas Conservation Commission Department of Natural Resources COGCC INFORMATION SHEET: PUBLIC COMMENTS (As required by COGCC Rule 303.e. (2)D) Purpose This information sheet provides details on how to make public comments on an Oil and Gas Development Plan submitted to the Colorado Oil and Gas Conservation Commission via the Form 2A, Oil and Gas Location Assessment permit application. Why am I receiving this Information Sheet? You have received this Colorado Oil and Gas Conservation Commission ("COGCC") information sheet because an oil and gas operator ("the Operator") has submitted an application for an Oil and Gas Development Plan ("OGDP"), and that application is under review by the COGCC. Per COGCC Rule 303.e.(1), the Operator is required to provide this information to you within seven days of the application materials being posted on the COGCC website. COGCC Rule 303.d requires the COGCC to open a formal "public comment period" upon posting the OGDP application to our website. This public comment period allows the public to review OGDP applications and their components (i.e., proposed Oil and Gas Locations), and provide comments on those pending permit applications. How can I provide comments on pending permits in an OGDP? Members of the public can access OGDP applications through the COGCC website to review permit information and provide comments. Public comments may be made directly on Form 2A, Oil and Gas Location Assessment permit applications ("Form 2A") through the COGCC website, 1. Go to the COGCC website https://cogcc.state.co.us 2. On the green menu bar, click on the "Permits" page. This will take you to the "Drifting and Location Permits Search" tool for Pending Permits. Co COLORADO Or b Gas C.n..rnLion COMMILISSO Mn. C,rtct7;Y +-p 1 About Os I Camplarnts Dattii.oerd I Data I Gwerwootrt Libtatty 'Maps I Media 4 Permits I Repaln:.on I SR :9 181 I - : a' I t «attar lints Seartti unstr J tma trp.etwr I V I _t t+s.mett S..rsr Writs Hirt? 3. Under "Pending Permits", find "Oil and Gas Location Assessment Permits (Form 2A)". Select the county of interest from the dropdown menu and click "Go!" Pending Permits (Filed ON or AFTER January 15th, 2021) Oil & Gas Location Assessment Permits (Form 2A): Arapahoe 4. This will generate a table of pending applications and will indicate the status of the public comment period for each permit within the COGCC review process. 5. Scroll through the list of pending permits to find the one you would like to review. You may wish to use "crtl + f" to search for a specific document number, operator name, or location name. 6. To view the submitted Form 2A and its associated attached documents, click the "Location Name" link for any permit application. Pending Location Permits - All Counties Back Export to Excel Doc Number (Public Comment Link) Final day of Public Comment Penod (Closes at Moanight) Received Location Name (Documents ilnk) Status Status Data I 4112155141 1 03'11/2021 0126/2021:iron 'ts- PROCcSS 4 4•. 01,26x2021 7. To make a public comment on a specific permit application, click the "Doc Number" of the permit on which you wish to comment. Pending Location Permits - All Counties Back Export to End Doc Number (Public Comment Link) Final day of Public Comment Penal (Closes at Midnight) Received Location Hams (Documents Link) Status Status Date I 40215.5151 4a.03/1112021 01/262021 �: -!S•' g� 5 IN Pa rss 01(262021 After clicking the Doc Number link, you will be taken to the Public Comment portal. 8. In the Public Comment portal, you may review the Form 2A application including the PDF and all attachments. Selected Well / Location: Document Number Form Type 402165141 02A COL Attachments PDF I I Make Comment 9. To make a public comment, click the "Make Comment" button. A Form will open for you to provide your name, contact information, and your comment. Only the text in the Comment box wilt be made public; your contact information will be kept confidential by COGCC. Pease Ile out the Gelds below in ttA :o submit your comment Name: Andress: State: Ems: Phone Number: Subject Comment 10. Click the "Submit Comment" button when you are ready to submit your comment. Page I 2 11. You may also view other public comments and read yours after it is posted by scrolling down on this page (see below about a delay in displaying comments). How long do I have to submit a comment on a permit? The Public Comment Period begins once the COGCC Director determines the OGDP application is complete and has been successfully submitted by the operator. The Director will approve the Form 2C, OGDP Certification form, and post the OGDP application on the website for public review. In order to be considered by the Director and Commission during the review of the OGDP, public comments must be received as follows: 1. Within 30 days from the date that the Director posts thethe OGDP on the website, OR 2. Within 45 days if the OGDP includes any proposed Oil and Gas Locations within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, or School Facility within a Disproportionately Impacted Community. The final day for public comments can be found in the list of all pending permits: Pending Location Permits - AU Counties Back Export to Excel Doc Number (Public Comment Link) Final day of Public I Comment Period (Closes at Midnight) Received Location Name (Documents Link) Status Status Dab I 40215 141 03111/2021 01/26/2021 Olin Tess 4 PROCESS 01(26'2021 When the Public Comment Period closes, the date will revert to read "Comments Closed". The link to the public comment portal will remain active, but comments will no longer be accepted. You will still be able to view any public comments submitted for pending permits. The Director may extend or reopen the public comment period per Rule 303.g, for up to an additional 30 days for a proposed OGDP if the Director determines an extension or reopening is reasonable in order to obtain public input. What happens to my comment? Your comment will become part of the public record of the application and will be reviewed by the applicant, COGCC staff, Director, and the Commission. COGCC staff may recommend permit conditions in response to comments. But, Staff does not routinely respond individually to comments; instead, COGCC staff will work directly with the applicant to address the site -specific concerns expressed. Submitted comments may not be immediately visible; it may be a few days before you see your comments posted. This delay allows COGCC supervisory staff to screen for offensive language prior to publication. What if I want to make my comment to the Commission? COGCC Staff and the Director review every comment received on a Form 2A permit application. They review the site specific concerns against the totality of the application materials, including the alternative location analysis, cumulative impacts evaluation, and best management practices proposed by the applicant. When the Director makes a recommendation to the Commission to either approve or deny an OGDP, that recommendation will include the consideration of the public comments received. In their review of an OGDP for a final determination at the administrative hearing, the Commission will have access to the entire record, including your public comment. Can I remain anonymous? Yes. Only the "Comment" portion of your submitted comment will be made publicly viewable. Your name and contact information will be kept confidential, and will only be used by COGCC staff to contact you if necessary in the course of permit application review. If you choose to include your name and contact information in the body of your comment text, it will be part of the public record. Links The following links provide guidance and additional information on providing Public Comments. COGCC Permits Page: https://cogcc.statenco.us/permits.htmt#/permits Numerous helpful guidance documents can be found at the link on the COGCC Permits Page: https://cogcc.state.co.usiperm'ts2.htm #ipermitshe p Daily Activity Dashboard (DAD) is another useful tool and can be used to access the public comment portal as well: https://cogcc.state.cosus/dashboard.html Version 1.0 March 9, 2021 DM• COLORADO Oil & Gas Conservation Commission Department of Natutal Resourc<.., INFORMATION SHEET: HYDRAULIC FRACTURING TREATMENT (As required by COGCC Rule 303.e.(2).E) Why am I receiving this information sheet? The Colorado Oil and Gas Conservation Commission ("COGCC") prepared this information sheet to provide the public with information related to hydraulic fracturing. Pursuant to Commission Rule 303.e.(2).E, Operators' are required to provide this information sheet to mineral owners within the area of proposed development and all landowners, homeowners, commercial property owners, tenants, and other entities within 2,000 feet of a proposed oil and gas location. What is hydraulic fracturing treatment, and why is it necessary? Hydraulic fracturing treatment is the process of creating small cracks, or "fractures," in the rocks of deep, underground geological formations that have oil and natural gas. The fractures enhance the flow of oil and gas from the formation to the oil and gas well where it flows or is pumped up the well to the production equipment located on the surface of the site. The process of hydraulic fracturing has been used for decades in Colorado, dating back to the 1970s. Operators' continue to improve hydraulic fracturing, and it is now a standard practice used in almost all oil and gas wells in the state, and across much of the country. Hydraulic fracturing has made it possible to produce oil and gas from rock formations that did not often produce oil and gas in the early to middle part of the twentieth century. What happens before hydraulic fracturing treatment? The operator uses a drilling rig to drill a "surface hole" and set a steel pipe called "surface casing" in the hole. The surface casing may extend many hundreds of feet, sometimes more than 1,000 1 "Operator" as defined in COGCC Rules 'Hereinafter, and only for the purpose of describing the hydraulic fracture treatment process, the term "operator" includes the operator itself and all contractors and service providers that the operator hires to perform work. feet, underground. The operator places cement on the outside of the surface casing to seal and protect groundwater. The operator tests the surface casing with pressure, then a smaller "production hole" is drilled out the bottom of the surface casing. After completing a formation integrity test, the operator drills down to the geological formation containing oil and gas, usually many thousands of feet underground. The operator towers a production casing into the production hole, and cement is used to make a seal above the deep oil and gas formation. The operator "completes" the welt by placing holes, or "perforations" in the casing at the deep oil and gas formation, to allow oil and gas to flow into the well. The well is then ready for hydraulic fracturing treatment. What happens during and after hydraulic fracturing treatment? The operator performs the treatment by using high pressure water pumps to fracture the deep oil and gas rock formation. The pumps push fracturing fluids down the well and out through the perforations, into the oil and gas rock formation. The hydraulic fracturing fluids are mostly water and sand, with a small amount of chemical additives. The sand, also called "proppant," remains in the fractures to help keep the fractures open allowing oil and gas to flow through the fractures to the perforations. After hydraulic fracture treatment, the welt is allowed to "flowback," meaning hydraulic fracture fluids, oil, gas, and produced water from the formation flow through the perforations and up the well to the surface where the fluids are separated. The operator sells the oil and gas. Waste products, mostly water produced from the oil and gas formation and hydraulic fracture fluids, are captured and stored for proper treatment or disposal. Page 2 Overhead view of a multiple -well site with hydraulic fracturing equipment set up inside a sound wall Common questions and answers about hydraulic fracturing treatment. Q: How is an oil and gas well designed to be protective of public health, the environment, and wildlife resources? A: COGCC engineering staff review all well permits to ensure that wells are lined with multiple layers of steel and cement sufficient to isolate groundwater from the deep oil and gas rock formations. The operator's wellbore design must meet COGCC wellbore isolation standards and rules in order to receive a permit to drill. Surface casing extends from the ground surface to 50 feet or more below groundwater. Production casing is cemented to seal the oil and gas formation in the well and prevent flow between groundwater and the oil and gas formations. The operator performs a well survey, called a "cement bond log," to verify the cement placement around the production casing. Additionally, the operator pressure tests surface equipment and ensures that nearby, "offset" wells that are close enough for pressure communication in the oil and gas formation have properly -rated surface equipment or downhole plugs. Q: Will hydraulic fracturing treatment cause problems with water wells A: Water welt problems related to hydraulic fracturing in Colorado are rare, which is largely a result of COGCC's long-standing mission to protect Waters of the State of Colorado, including groundwater. Most recently, the COGCC adopted n ew rules for wellbore isolation, effective November 2, 2020 to further strengthen this mandate. Geologic factors in Colorado also serve to help prevent groundwater impacts. Often, many thousands of feet of confining rock layers separate shallow groundwater formations that are used for drinking water, livestock, and irrigation from deep o il and gas formations. In cases where an operator intends to perform a hydraulic fracture treatment at a depth of less than 2,000 feet underground, a geological and engineering evaluation is required prior to approving a drilling permit. In cases where deep groundwater is present, COGCC rules require additional cement in oil and gas wells to seal the deep groundwater formations. Q.: What is hydraulic fracture fluid? A: The COGCC and regulatory agencies of other oil and gas producing states partner with FracFocus, a Chemical Disclosure Registry, that operators use to report hydraulic fracture fluid chemical data (https://www.fracfocus.org/). According to FracFocus, approximately 98% to 99% of the fracturing fluid volume in most wells is water and sand. The remaining portion is made up of chemical additives used to reduce friction during pumping and prevent corrosion of the steel casing. Biocide is used to kill bacteria in the water. Surfactants promote water flowback from the formation, up the welt and into the oil and gas production equipment at the well site or a nearby "tank battery." Fracturing chemicals are similar to other industrial chemicals which must be handled properly. COGCC rules require that operators properly store and handle chemicals in a manner that protects operator's employees, the public, the environment, and wildlife. COGCC rules require operators to publicly disclose the components and concentrations of fracturing chemicals for each well within 60 days of the hydraulic fracture treatment on the FracFocus website, which is searchable by county, operator, and welt. The website also provides information o n chemicals used and their purpose. Version 2.1 April 2, 2021 Page 3 Q: How are hydraulic fracturing► fluids managed on the well site? A: Operators manage large volumes of drilling fluid, hydraulic fracturing fluid, and flowback during drilling and hydraulic fracturing treatment. Operators protect the public, environmental resources, and wildlife by implementing best management practices specified by permit conditions and COGCC rules for spilt prevention. After hydraulic fracturing treatment, fluids return to production equipment at the welt site as flowback. These flowback fluids are considered oil and gas Exploration and Production Waste ("[FtP Waste") that are recycled for other oil and gas operations, or are disposed of in accordance with state regulations. Marketable production fluids, including oil and gas, are separated and contained in tanks or vessels, or sent by pipeline to sales. Q: What can neighbors expect to experience during hydraulic fracturing treatment? A: The operator provides the COGCC and the local government a 48 -hour notice before performing hydraulic fracturing treatment. As the operator mobilizes the hydraulic fracturing crews, water tanks are placed at the site. The operator transports water to the site for hydraulic fracturing fluid by pipeline or water trucks. Heavy equipment, such as sand haulers, pump trucks, blending units and a control van arrives and the equipment is connected to the well with high pressure piping. The operator pressure tests the equipment, then the hydraulic fracture treatment begins. The work can take several days to several weeks, depending on the number of wells on the well site and the number of treatment stages needed for each well. The equipment noise from engines, pumps, and vehicles will be noticeable during the work. Induced seismicity from hydraulic fracturing is very low intensity, too small to be noticed by people at the ground surface, and therefore man-made earthquakes are not a common occurrence in Colorado during hydraulic fracturing treatment operations. Where can I get additional information? FracFocus (www.fracfocus.org) contains detailed information on hydraulic fracturing, chemicals used, groundwater protection and how to find a well near you. COGCC rules related to hydraulic fracturing: • Rule 308 Form 2, Application to Drill, Deepen, Re -Enter, or Recomplete, and Operate, Information Requirements • Rule 405.k Notice of Intent to Conduct Hydraulic Fracturing Treatment • Rule 408 General Drilling Rules • Rule 411 Public Water System Protection • Rule 419 Bradenhead Monitoring, Testing, and Reporting • Rule 423 and 424 Noise and Lighting • Rule 437 Hydraulic Fracturing Chemical Additives • Rule 614 Coalbed Methane Wells • Rule 615 Groundwater Baseline Sampling and Monitoring • Rule 905 Management of EaP Waste • Rule 912 Spills and Releases (includes landowner notification requirements) COGCC's rules are available as downloadable files at cogcc.state.co.us. Version 2.1 April 2, 2021 4 COLORADO Oil & Gas Conservation Commission Department of Naftali Resources COGCC INFORMATION SHEET: OGDP STATUS INFORMATION (As required by COGCC Rule 303.e.(2).G) Why am I receiving this information sheet? The Colorado Oil and Gas Conservation Commission ("COGCC") prepared this information sheet to inform the public in the vicinity of a proposed Oil and Gas Development Plan ("OGDP") how to access documents and view the status of proposed OGDPs through the COGCC's website, eForms, and eFiling system. A review of public property records indicates that you may have an interest in lands that an oil and gas operator wishes to develop as part of an OGDP. Pursuant to Commission Rule 303.e.(2).G, operators are required to provide this information sheet to certain recipients near their development plans. What is an Oil and Gas Development Plan? An OGDP is an operator's plan to develop subsurface oil and gas resources ("minerals") from one or more surface locations. An OGDP consists of a hearing application and associated permit materials that provide technical information. The Director (i.e. COGCC Staff) reviews the technical information and makes a recommendation to the Commission for the hearings application; the Commission has the ultimate authority on approval or denial of the OGDP. How do I view the status of the pending OGDP hearing application? Members of the public may view the status of proposed OGDP applications through the COGCC eFiling System by creating an account in the Applications and Docket Portal, available on the "Hearings Page." 1. From the COGCC homepage, click "Regulation" in the green menu bar, and then "Hearings" on the blue bar. 2. On the right-hand side of the Hearings page, under the Hearings eFiling System header, click on "Application and Docket Portal". Hearings eFiling System (Beginning November 9, 2020) • Document Search • Application & Docket Portal 4.- 3. Create a user account by clicking "Request Access to Account," and completing the required registration information. There may be a delay for processing following your request before you are granted access. Check your email for access approval. 4. Once registration is complete, access the Application and Docket Portal by entering your user name and password. 5. Search for the 9 -digit docket number provided by the operator in their cover letter using the "Find Hearing Application by Docket Number" option at the bottom left of the page. Find Hearing Application by Docket Number SEARCH RESULTS Docket Number 210012345 6. The general status of the docket is listed in the first column on the left, titled "Docket Status." 7. Double click the docket search result to toad the docket's main page, which will show additional information, including the application type, status, assigned Hearing Officer, and applicant information. Do I have to create an account to view documents? No. You may view documents through the "Document Search" described below without creating an eFiling System account, but you will not be able to view the "status" of the docket through this method. 1. On the right-hand side of the Hearings page, under the Hearings eFiling System header, click on the "Document Search" link. Hearings eFiling System (Beginning November 9, 2020) • Document Search - Application Application & Docket Portal 2. From the "Search Type" dropdown menu, select "DNRCOG Search for Docket Related Documents." Search Type DNRCOG New Appbca:icns DNRCOG NevtAppbca Dons DNRCOG New Docourr.ents DNRCOG Search for Docket Retate1 Documents Page 2 • 3. Input the docket number provided by the operator. DNRCOG Docket Number ICJ 2-,-_ 4. If you don't have a docket number, or to view any OGDP, scroll down to the "DNRCOG Application Type" dropdown menu and select "OIL Et GAS DEVELOPMENT PLAN." DNRCOG Application Type ADDITIONAL WELLS COMPREHENSIVE AREA PLAN ENFORCEMENT EXCEPTION LOCATION GENERAL ADMINISTRATIVE OIL & GAS DEVELOPMENT PLAN tmTUCO 5. After step 3 or 4, scroll down and click the "Search" button at the bottom of the scroll bar. 6. A list of all related documents will appear. Click on any item to view its contents. How do I view general forms, permits, and data regarding permits and OGDPs? You may use the Daily Activity Dashboard to access frequently requested oil and gas data at the county and state levels. The Daily Activity Dashboard is located in the right-hand corner of the COGCC homepage, and allows you to search and generate custom-made statistical charts, graphs, tables, and maps for information including pending permits, well status, production, well inspections, Notices of Alleged Violation, active notifications, and spills. The COGCC also provides access to pending and approved permits through its "Permits Search" and interactive map on the COGCC website. To view the status of pending Form 2As (Oil and Gas Location Assessment Permits) through the "Permit Search" function, follow the steps outlined below: 1. Click "Permits" in the green menu bar on the COGCC homepage. This will take you to the "Drilling and Location Permits Search" page. 2. Under Pending Permits, find "Oil Et Gas Location Assessment Permits (Form 2A)". Select "All Counties" or a specific county using the drop down menu and click "Go!". Pending Permits (Filed ON or AFTER January 15th, 2021) Oil & Gas Location Assessment Permits (Form 2A): All Counties " I I Go1 1 3. A table will show all pending Form 2As currently under review by the COGCC. : 'Fa "In r rip, lir n_S to Iavaf.• � Pending Location Permits - All Counties Its wort lr tar Vs r ..��e Lase .nae see a an las•• ?sem a frog• tessera,.arw Cono w e.m _..a• rta+.�e+.l>'.1 MOM •••••• romps rr.t.•••••••• r a.•r Sid tt.RO[D 1 C'•rr • > - Illaals .r-- f • S% Cae.A C ." . _me 4.161•-. • •a- per Lets: er aSi is eV r r '"' YIr it. r C S. x..M C .'t.n 4.711014.71101•0fi Ian 0 ISIS e.rsa. I Sao .n- f a S SS C r4 . • nra . "CI :sat tMtit• et' ^ e 1.M r a a►' chore a. Clicking a "Doc Number" link will take you to the Public Comments portal for that pending permit. b. Clicking a "Location Name" link will take you to a list of documents related to that permit, including the Form 2A (as submitted by the operator) and supporting documents that are attached to the pending permit application. Can I view pending applications on the COGCC Map? Yes. You may access the COGCC GIS Online Interactive Map by clicking "Maps" in the green banner on the COGCC homepage, then click "Click HERE to access interactive map". You may use the "address search" option to zoom to your address to see oil and gas activity near you. With the map zoomed to your area of interest, you may specify pending permits by checking the appropriate boxes on the left-hand menu. • Permits Lff Pending Well (Form 2) Permit Approved Well (Form 2) Permit 2O Pending Location (Form 2A) Permit Approved Location (Form 2A) Permit C ■ To select and view a pending application, use the arrow toot to double-click on the pending icons to display the Application. Links COGCC Homepage: https://cogcc.state.co.us/ft/home Hearings Page: https://cogcc.state.co.us/reg.html#/hearings eFiling system help: http: / /cogcc/documents/ reg/ Hearings/ External E filing System Users Guidebook 20201109.pdf COGCC GIS Online Interactive Map help: http: / /cogcc/documents/about/ Help/Search%20pendin g,%20permits%20on%20the%2OCOGCC%20map. pdf Version 1.0 March 9, 2021 Exhibit G Bison Sandy Bay OGDP Interested Parties Mr Jason Maxey, Director/LGD Weld County Department of Planning Services CPW — Attn Brandon Marette CDPHE — Attn Tessa Sorensen Bnggsdale Fire Protection District Weld County Shernff Colorado State Highway Patrol Jerry W Cass Hiram T Hill Wells Ranch Joel M Degenhart DIROME Land Trust Chris A Schults and Steven R Schults Thomas L Karlberg and Kimberly C Karlberg Abigale C Reimer Aeronica Branch Alex Degenhart Anadarko E&P Company, LP Anadarko Land Corp April M Bachrodt BCF Partners Capital II, LLC Beckie Bonnell Beverly May LaFontaine, formerly Beverly May Pushkin Butera Beverly May Pushkin Butera, aka Beverly Kay May, aka Beverly May LaFontaine Bison IV Properties Colorado LLC Bob E and Barbara M Johnson Bonanza Creek Energy Operating Company, LLC Capsheaf LLC Catherine Louise Horst Centennial Mineral Holdings, LLC Dale Edward Geer DAPCO, LLP Darrell Lee Johnson Dennis Haynes Dennis K Larson Donna Mask Ellis Knoll Equity Trust Company, Custodian FBO Edward H Seal, III SEP IRA Fred Johnson Fred Walter Will Frost Rene Ravenel Pnoleau Gentry Family Investments, LP Hat Creek Royalty, LTD Henrietta LQ Gutterson and Michael Guttersen, as Co -Trustees of the Henrietta LQ Guttersen Trust Agreement UAD 8/28/2012 HighPoint Operating Corporation, Inc Jack Degenhart Jack Duane Meisner James A Wickland Janis May Fonda Jennifer L Rogers Joel M Degenhart John Carl Rogers John Royal Biggs Jon Thomas Mihm Jonathan Johnson Joyce Storer Judd Johnson Kerr-McGee Oil & Gas Onshore LP Kirk Lynn Meisner Klayton Degenhart Larry P Will Lazy Bird, LLC Leonard Ray Will Lillete Morettini Lincoln Energy Partners IV, LLC Linda J Wickland Linda Lent Moore Linda May Will Louana Jean Yarbrough Lowe Royalty Partners, LP Lynelle Anna Will Andrade Margaret Ann Batterton Marjorie A Worster Mark W Hoff Marlin South Texas Minerals Corp Michael Guttersen and Henrietta Quinn Guttersen Michele L Dunn Mindy Kay Ahumada Nichole Amos Noble Energy Inc Norine Ahlbrandt OG&A, LLC OOGC America Inc aka CNOOC ENERGY USA LLC Pamela Irene Valencia PDC Energy Inc Pleasant Grove Holdings, LLC Provident Trust Group, LLC, custodian' FBO Tony C Hicks 1 Attn Lockbox Dept Raymond James Moody Rebecka Rae Gregory Red Hawk Petroleum, LLC Richard Bruce Biggs Richard R Gish Robert F Gish Robert J Brown and Denis Y Brown Robert L Klingenberg and Betty J Klingenberg, Trustees for the Klingenberg Family Trust dated March 22, 2012 Robert Roy Meisner Robert William Biggs Rochelle Flannery Roger D Frasco Ronald N Gish Roxanne Coate Sandy Creek Minerals, LLC Steven R Schultz aka Stephen R Schultz and Chris A Schultz Susan K Rand Taylor M Bergum Theron Dee Kitchen, Jr Tracey E Bergum Union Pacific Railroad Company , Unity #9-A, LLC Unity 12-C, LLC Weld County, Colorado, a political subdivision of the State of Colorado, acting by and through the Board of County Commissioners Westgate Mineral Group, LLC William J Janssen, Trustee of the Adam J Mueller Trust dtd 5/24/2012 Zoe Flannery United States BLM Colorado State Office 4 COLORADO Oil & Gas Conservation Commission Department Oi Natural Resources COGCC INFORMATION SHEET: PROCEDURAL STEPS FOR THE COMMISSION'S REVIEW OF OGDPs (As required by COGCC Rule 303.e. (2).C) Why am I receiving this information sheet? Oil and gas operating companies ("Operators") are required to obtain approval of an Oil and Gas Development Plan ("OGDP") from the Colorado Oil and Gas Conservation Commission ("COGCC") prior to undertaking any new operations such as drilling oil and gas wells or building oil and gas locations. When an Operator submits an OGDP application to the COGCC for consideration, and the application has been received and is deemed complete, COGCC staff begins a format technical review of the application materials, and a public comment period starts. COGCC has prepared this information sheet to inform the public of the procedural steps involved with the Director's and Commission's review of an OGDP, so that the public is informed and may participate in the review process if they choose. As part of the process, Operators must provide this information sheet to certain recipients, like yourself, that include mineral owners within the area of proposed development and all landowners, homeowners, commercial property owners, tenants, and other entities within 2,000 feet of an oil and gas location proposed by a pending OGDP application. What is an Oil and Gas Development Plan (OGDP)? An OGDP is an Operator's plan to develop oil or gas resources ("minerals") from one or more surface locations. Operators prepare an OGDP and associated application materials, consistent with the requirements of COGCC Rule 303, and submit the plan for approval through the Commission's Hearings process. The application materials include a hearing application; one or more Form 2A, Oil and Gas Location Assessments; a Form 2B, Cumulative Impacts Data Identification; and a Form 2C, OGDP Certification. The application may also include a request for the establishment of one or more Drilling and Spacing Units ("DSUs"). The OGDP, along with its associated supporting documents, will be heard at a public hearing where the Commission will make a final determination to approve or deny the OGDP application. What are the procedural steps involved with the Director's and Commission's review of Oil and Gas Development Plans? 1. OGDP application is submitted: Operator/ Applicant submits a complete OGDP application with all supporting documents. The written portion of the application is submitted to the COGCC hearings unit via the eFilings system, and Forms 2A, 2B, and 2C are submitted to technical staff via the eForms system. (See Rules 303 Et 304) 2. OGDP application is received: The COGCC hearings unit reviews the written hearing application, assigns a docket number for the OGDP, and provides public notice for the hearing. (See Rules 303 Et 504) 3. Completeness determination: The COGCC technical staff and Director review the application materials for completeness. When deemed complete: a. the OGDP application materials are posted on COGCC's website; b. the Operator provides notice (including this information sheet) to relevant persons; c. the public comment period begins; d. the formal consultation period commences as applicable (including relevant/ proximate local governments and other agencies such as Colorado Parks and Wildlife ("CPW") or Colorado Department Page 2 • of Public Health and Environment ("CDPHE")); and e. COGCC staff begin their technical review of the OGDP components. (See Rule 303). 4. Director's review of application (technical review): COGCC technical staff conducts the technical review of all application materials to ensure compliance with COGCC Rules, ensure the protection of public health, safety, welfare, the environment, and wildlife resources, and to evaluate potential Cumulative Impacts. The technical review includes analysis and assessment of: a. DSUs and protection of mineral owner's correlative rights; b. proposed surface locations and alternative locations; c. downhole and engineering considerations; d. best management practices; e. public comments and recommendations provided by consulting agencies; f. financial assurance; and the need for conditions of approval. (See Rule 306) 5. Director's recommendation: Once the Director has reviewed the application materials, the Director provides a written recommendation to the Commission in support of the approval or denial of the OGDP application. The Director will post the recommendation on COGCC's website, notify relevant parties', and submit it to the COGCC hearings unit in preparation for hearing. (See Rule 306.c) 6. Commission's consideration and final action (public hearing): The Commission receives the g. 1 Parties who receive this information sheet will not necessarily be included in the notice of the Director's recommendation. Parties who make a public comment on the Form 2A and include their email address will receive the notice of the Director's recommendation. Director's recommendation of the OGDP and begins review of the OGDP with support from the COGCC hearings unit. The review includes all supporting documents, written testimony, public comments, consulting agency recom- mendations, and Director's recommendation. The Commission considers the OGDP at a public hearing, which may include oral testimony provided during the hearing. The Commission makes a final determination and presents its findings in a written order based on the evidence in the record; the Commission's order to approve or deny the OGDP application is final. (See Rule 307) Where can I get additional information? For more information about the COGCC administrative hearing process and OGDPs, please refer to the COGCC website at http://cogcc.state.co.us. You may also contact the COGCC at dnr.ogcc@state.co.us or 303-894-2100. Please note, COGCC staff are not available to provide legal advice. COGCC recommends that you engage an attorney with knowledge of oil and gas matters to assist you with reviewing any offers you receive from an oil and gas operator or other person. Version 1.0 March 9, 2021 COLORADO Oil Et Gas Conservation Commission Department of Natural Re≥ources COGCC INFORMATION SHEET: PUBLIC COMMENTS (As required by COGCC Rule 303.e. QED) Purpose This information sheet provides details on how to make public comments on an Oil and Gas Development Plan submitted to the Colorado Oil and Gas Conservation Commission via the Form 2A, Oil and Gas Location Assessment permit application. Why am I receiving this Information Sheet? You have received this Colorado Oil and Gas Conservation Commission ("COGCC") information sheet because an oil and gas operator ("the Operator") has submitted an application for an Oil and Gas Development Plan ("OGDP"), and that application is under review by the COGCC. Per COGCC Rule 303.e.(1), the Operator is required to provide this information to you within seven days of the application materials being posted on the COGCC website. COGCC Rule 303.d requires the COGCC to open a formal "public comment period" upon posting the OGDP application to our website. This public comment period allows the public to review OGDP applications and their components (i.e., proposed Oil and Gas Locations), and provide comments on those pending permit applications. How can I provide comments on pending permits in an OGDP? Members of the public can access OGDP applications through the COGCC website to review permit information and provide comments. Public comments may be made directly on Form 2A, Oil and Gas Location Assessment permit applications ("Form 2A") through the COGCC website. 1. Go to the COGCC website https://cogcc.state.co.us 2. On the green menu bar, click on the "Permits" page. This will take you to the "Drilling and Location Permits Search" tool for Pending Permits. so COLORADO Oe i C.. Ca.enlje Cams H-•,++ Conte,' :is ; i..p F.... Abo.0 Ui Ccnpleow Dedrbcwd ( Data ) Gormmase:d Lbtsry I Ms t Made ! Pwmas Ar•patsuon ; 5919.151 fl.p-. ant laCart ik•rtwes !cads ) Uneegtau►e Ir.t.tlror itr:C1 r'.rnJts start,. M.m rts 14 tp 3. Under "Pending Permits", find "Oil and Gas Location Assessment Permits (Form 2A)". Select the county of interest from the dropdown menu and click "Go!" Pending Permits (Filed ON or AFTER January 15th, 2021) Oil & Gas Location Assessment Permits (Four 2A): Arapahoe Gcl 4. This will generate a table of pending applications and will indicate the status of the public comment period for each permit within the COGCC review process. 5. Scroll through the list of pending permits to find the one you would like to review. You may wish to use "crtl + f" to search for a specific document number, operator name, or location name. 6. To view the submitted Form 2A and its associated attached documents, click the "Location Name" link for any permit application. Pending Location Permits - All Counties Back Export to Excel Doc Number (Public Comment Link) Final day o1 Public Comment Penod (Closes at Midnight) Received _ Location (Documents Link) Status Status Date I 402155141 GY1L2021 01(262021 PROCESS Firm es 4 - 0i.26t2021 7. To make a public comment on a specific permit application, click the "Doc Number" of the permit on which you wish to comment. Pending Location Permits - All Counties Back Export to Excel Doc Number (Public Comment Link) Final Cay at Public Comment Period (Closes at Midnight) Received Location Name (Documents Link) Status 5ari:s Date I 4 D2, 5;121 4r........C.3m/2021 01'26/2021 :. zj't -es a IN PROCESS 01/26/2021 After clicking the Doc Number link, you will be taken to the Public Comment portal. 8. In the Public Comment portal, you may review the Form 2A application including the PDF and all attachments. Selected Well / Location: Document Number Form Type 402165141 02A COL Attachments PDF Make Comment 1 9. To make a public comment, click the "Make Comment" button. A Form will open for you to provide your name, contact information, and your comment. Only the text in the Comment box will be made public; your contact information will be kept confidential by COGCC. Pease fill out me fos below in full to submit your comment. Name: Address: City: t _ Subject Comment State: ZIp- Emai;: Phone Numi;er: 10. Click the "Submit Comment" button when you are ready to submit your comment. Page I 2 • •a.•n.I• •.•MYwaAJa. r••.•.•I••I ._...••. n .,.•w.4 •V• -•—a . . Iwa,/MI• ••I rile w—••M••••••.••a• • N a•a•W e•••••••/•••• ••-••••• row #_..-'Iw_•MHMYYAJM/w,MIM Y• •-YID"-..l• N,w•••w••w•• 11. You may also view other public comments and read yours after it is posted by scrolling down on this page (see below about a delay in displaying comments). How long do I have to submit a comment on a permit? The Public Comment Period begins once the COGCC Director determines the OGDP application is complete and has been successfully submitted by the operator. The Director will approve the Form 2C, OGDP Certification form, and post the OGDP application on the website for public review. In order to be considered by the Director and Commission during the review of the OGDP, public comments must be received as follows: 1. Within 30 days from the date that the Director posts thethe OGDP on the website, OR 2. Within 45 days if the OGDP includes any proposed Oil and Gas Locations within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, or School Facility within a Disproportionately Impacted Community. The final day for public comments can be found in the list of all pending permits: Pending Location Permits - All Counties Back Export to Excel Doc Number (Public Comment Lick) Final day of Public Comm* Com* Period (Closes at Midnight) Received LoCatICn Name (Docua»n s Link) Status Status Date 102if6u1 0911/2021 011262Ct21 elari -est 4 PROCESS01/26,2021 When the Public Comment Period closes, the date will revert to read "Comments Closed". The link to the public comment portal will remain active, but comments will no longer be accepted. You will still be able to view any public comments submitted for pending permits. The Director may extend or reopen the public comment period per Rule 303.g, for up to an additional 30 days for a proposed OGDP if the Director determines an extension or reopening is reasonable in order to obtain public input. What happens to my comment? Your comment will become part of the public record of the application and will be reviewed by the applicant, COGCC staff, Director, and the Commission. COGCC staff may recommend permit conditions in response to comments. But, Staff does not routinely respond individually to comments; instead, COGCC staff will work directly with the applicant to address the site -specific concerns expressed. Submitted comments may not be immediately visible; it may be a few days before you see your comments posted. This delay allows COGCC supervisory staff to screen for offensive language prior to publication. What if I want to make my comment to the Commission? COGCC Staff and the Director review every comment received on a Form 2A permit application. They review the site specific concerns against the totality of the application materials, including the alternative location analysis, cumulative impacts evaluation, and best management practices proposed by the applicant. When the Director makes a recommendation to the Commission to either approve or deny an OGDP, that recommendation will include the consideration of the public comments received. In their review of an OGDP for a final determination at the administrative hearing, the Commission will have access to the entire record, including your public comment. Can I remain anonymous? Yes. Only the "Comment" portion of your submitted comment will be made publicly viewable. Your name and contact information will be kept confidential, and will only be used by COGCC staff to contact you if necessary in the course of permit application review. If you choose to include your name and contact information in the body of your comment text, it will be part of the public record. Links The following links provide guidance and additional information on providing Public Comments. COGCC Permits Page: https://cogcc.state.co.usipermits.htmtitipermits Numerous helpful guidance documents can be found at the link on the COGCC Permits Page: https: / /cogcc.state. co. us/permits2. htm.#/permitshelp Daily Activity Dashboard (DAD) is another useful tool and can be used to access the public comment portal as well: https://cogccastate.co.us/dashboardehtml Version 1.0 March 9, 2021 V COLORADO Oil & Gas Conservation Commission Department of Natural Resources INFORMATION SHEET: HYDRAULIC FRACTURING TREATMENT (As required by COGCC Rule 303.e.(2).E) Why am I receiving this information sheet? The Colorado Oil and Gas Conservation Commission ("COGCC") prepared this information sheet to provide the public with information related to hydraulic fracturing. Pursuant to Commission Rule 303.e.(2).E, Operators' are required to provide this information sheet to mineral owners within the area of proposed development and all landowners, homeowners, commercial property owners, tenants, and other entities within 2,000 feet of a proposed oil and gas location. What is hydraulic fracturing treatment, and why is it necessary? Hydraulic fracturing treatment is the process of creating small cracks, or "fractures," in the rocks of deep, underground geological formations that have oil and natural gas. The fractures enhance the flow of oil and gas from the formation to the oil and gas well where it flows or is pumped up the well to the production equipment located on the surface of the site. The process of hydraulic fracturing has been used for decades in Colorado, dating back to the 1970s. Operators continue to improve hydraulic fracturing, and it is now a standard practice used in almost all oil and gas wells in the state, and across much of the country. Hydraulic fracturing has made it possible to produce oil and gas from rock formations that did not often produce oil and gas in the early to middle part of the twentieth century. What happens before hydraulic fracturing treatment? The operator uses a drilling rig to drill a "surface hole" and set a steel pipe called "surface casing" in the hole. The surface casing may extend many hundreds of feet, sometimes more than 1,000 1 "Operator" as defined in COGCC Rules Hereinafter, and only for the purpose of describing the hydraulic fracture treatment process, the term "operator" includes the operator itself and all contractors and service providers that the operator hires to perform work. feet, underground. The operator places cement on the outside of the surface casing to seal and protect groundwater. The operator tests the surface casing with pressure, then a smaller "production hole" is drilled out the bottom of the surface casing. After completing a formation integrity test, the operator drills down to the geological formation containing oil and gas, u sually many thousands of feet underground. The o perator lowers a production casing into the production hole, and cement is used to make a seal above the deep oil and gas formation. The o perator "completes" the well by placing holes, or "perforations" in the casing at the deep oil and gas formation, to allow oil and gas to flow into the well. The well is then ready for hydraulic fracturing treatment. What happens during and after hydraulic fracturing treatment? The operator performs the treatment by using high pressure water pumps to fracture the deep oil and gas rock formation. The pumps push fracturing fluids down the well and out through the perforations, into the oil and gas rock formation. The hydraulic fracturing fluids are mostly water and sand, with a small amount of chemical additives. The sand, also called "proppant," remains in the fractures to help keep the fractures open allowing oil and gas to flow through the fractures to the perforations. After hydraulic fracture treatment, the well is allowed to "flowback," meaning hydraulic fracture fluids, oil, gas, and produced water from the formation flow through the perforations and u p the well to the surface where the fluids are separated. The operator sells the oil and gas. Waste products, mostly water produced from the oil and gas formation and hydraulic fracture fluids, are captured and stored for proper treatment or disposal. Page 2 Overhead view of a multiple -well site with hydraulic fracturing equipment set up inside a sound wall Common questions and answers about hydraulic fracturing treatment. Q: How is an oil and gas well designed to be protective of public health, the environment, and wildlife resources? A: COGCC engineering staff review all well permits to ensure that wells are lined with multiple layers of steel and cement sufficient to isolate groundwater from the deep oil and gas rock formations. The operator's wellbore design must meet COGCC wellbore isolation standards and rules in order to receive a permit to drill. Surface casing extends from the ground surface to 50 feet or more below groundwater. Production casing is cemented to seal the oil and gas formation in the well and prevent flow between groundwater and the oil and gas formations. The operator performs a well survey, called a "cement bond log," to verify the cement placement around the production casing. Additionally, the operator pressure tests surface equipment and ensures that nearby, "offset" wells that are close enough for pressure communication in the oil and gas formation have properly -rated surface equipment or downhole plugs. Q: Will hydraulic fracturing treatment cause problems with water wells A: Water well problems related to hydraulic fracturing in Colorado are rare, which is largely a result of COGCC's long-standing mission to protect Waters of the State of Colorado, including groundwater. Most recently, the COGCC adopted new rules for wellbore isolation, effective November 2, 2020 to further strengthen this mandate. Geologic factors in Colorado also serve to help prevent groundwater impacts. Often, many thousands of feet of confining rock layers separate shallow groundwater formations that are used for drinking water, livestock, and irrigation from deep oil and gas formations. In cases where an operator intends to perform a hydraulic fracture treatment at a depth of less than 2,000 feet underground, a geological and engineering evaluation is required prior to approving a drilling permit. In cases where deep groundwater is present, COGCC rules require additional cement in oil and gas wells to seal the deep groundwater formations. Q: What is hydraulic fracture fluid? A: The COGCC and regulatory agencies of other oil and gas producing states partner with FracFocus, a Chemical Disclosure Registry, that operators use to report hydraulic fracture fluid chemical data (https://www.fracfocus.org/). According to FracFocus, approximately 98% to 99% of the fracturing fluid volume in most wells is water and sand. The remaining portion is made up of chemical additives used to reduce friction during pumping and prevent corrosion of the steel casing. Biocide is used to kill bacteria in the water. Surfactants promote water flowback from the formation, up the well and into the oil and gas production equipment at the well site or a nearby "tank battery." Fracturing chemicals are similar to other industrial chemicals which must be handled properly. COGCC rules require that operators properly store and handle chemicals in a manner that protects operator's employees, the public, the environment, and wildlife. COGCC rules require operators to publicly disclose the components and concentrations of fracturing chemicals for each well within 60 days of the hydraulic fracture treatment on the FracFocus website, which is searchable by county, operator, and well. The website also provides information on chemicals used and their purpose. Version 2.1 April 2, 2021 Page 3 Q: How are hydraulic fracturing fluids managed on the well site? A: Operators manage large volumes of drilling fluid, hydraulic fracturing fluid, and flowback during drilling and hydraulic fracturing treatment. Operators protect the public, environmental resources, and wildlife by implementing best management practices specified by permit conditions and COGCC rules for spill prevention. After hydraulic fracturing treatment, fluids return to production equipment at the well site as flowback. These flowback fluids are considered oil and gas Exploration and Production Waste (" EErP Waste") that are recycled for other oil and gas operations, or are disposed of in accordance with state regulations. Marketable production fluids, including oil and gas, are separated and contained in tanks or vessels, or sent by pipeline to sales. Q: What can neighbors expect to experience during hydraulic fracturing treatment? A: The operator provides the COGCC and the local government a 48 -hour notice before performing hydraulic fracturing treatment. As the operator mobilizes the hydraulic fracturing crews, water tanks are placed at the site. The operator transports water to the site for hydraulic fracturing fluid by pipeline or water trucks. Heavy equipment, such as sand haulers, pump trucks, blending units and a control van arrives and the equipment is connected to the well with high pressure piping. The operator pressure tests the equipment, then the hydraulic fracture treatment begins. The work can take several days to several weeks, depending on the number of welts on the welt site and the number of treatment stages needed for each well. The equipment noise from engines, pumps, and vehicles will be noticeable during the work. Induced seismicity from hydraulic fracturing is very low intensity, too small to be noticed by people at the ground surface, and therefore man-made earthquakes are not a common occurrence in Colorado during hydraulic fracturing treatment operations. Where can I get additional information? FracFocus (www.fracfocus.org) contains detailed information on hydraulic fracturing, chemicals used, groundwater protection and how to find a well near you. COGCC rules related to hydraulic fracturing: • Rule 308 Form 2, Application to Drill, Deepen, Re -Enter, or Recomplete, and Operate, Information Requirements • Rule 405.k Notice of Intent to Conduct Hydraulic Fracturing Treatment • Rule 408 General Drilling Rules • Rule 411 Public Water System Protection • Rule 419 Bradenhead Monitoring, Testing, and Reporting • Rule 423 and 424 Noise and Lighting • Rule 437 Hydraulic Fracturing Chemical Additives • Rule 614 Coalbed Methane Welts • Rule 615 Groundwater Baseline Sampling and Monitoring • Rule 905 Management of EaP Waste • Rule 912 Spills and Releases (includes landowner notification requirements) COGCC's rules are available as downloadable files at cogcc.state.co.us. Version 2.1 April 2, 2021 COLORADO Oil & Gas Conservation Commission Department of Natural Resources COGCC INFORMATION SHEET: OGDP STATUS INFORMATION (As required by COGCC Rule 303.e.(2).G) Why am I receiving this information sheet? The Colorado Oil and Gas Conservation Commission ("COGCC") prepared this information sheet to inform the public in the vicinity of a proposed Oil and Gas Development Plan ("OGDP") how to access documents and view the status of proposed OGDPs through the COGCC's website, eForms, and eFiling system. A review of public property records indicates that you may have an interest in lands that an oil and gas operator wishes to develop as part of an OGDP. Pursuant to Commission Rule 303.e.(2).G, operators are required to provide this information sheet to certain recipients near their development plans. What is an Oil and Gas Development Plan? An OGDP is an operator's plan to develop subsurface oil and gas resources ("minerals") from one or more surface locations. An OGDP consists of a hearing application and associated permit materials that provide technical information. The Director (i.e. COGCC Staff) reviews the technical information and makes a recommendation to the Commission for the hearings application; the Commission has the ultimate authority on approval or denial of the OGDP. How do I view the status of the pending OGDP hearing application? Members of the public may view the status of proposed OGDP applications through the COGCC eFiling System by creating an account in the Applications and Docket Portal, available on the "Hearings Page." 1. From the COGCC homepage, click "Regulation" in the green menu bar, and then "Hearings" on the blue bar. 2. On the right-hand side of the Hearings page, under the Hearings eFiling System header, click on "Application and Docket Portal". Hearings eFiling System (Beginning November 9, 2020) • Document Search • Application & Docket Portal *------ - 3. Create a user account by clicking "Request Access to Account," and completing the required registration information. There may be a delay for processing following your request before you are granted access. Check your email for access approval. 4. Once registration is complete, access the Application and Docket Portal by entering your user name and password. 5. Search for the 9 -digit docket number provided by the operator in their cover letter using the "Find Hearing Application by Docket Number" option at the bottom left of the page. Find Hearing Application by Docket Number SEARCH RESULTS Docket Number 210012345 6. The general status of the docket is listed in the first column on the left, titled "Docket Status." 7. Double click the docket search result to load the docket's main page, which will show additional information, including the application type, status, assigned Hearing Officer, and applicant information. Do I have to create an account to view documents? No. You may view documents through the "Document Search" described below without creating an eFiling System account, but you will not be able to view the "status" of the docket through this method. 1. On the right-hand side of the Hearings page, under the Hearings eFiling System header, click on the "Document Search" link. Hearings eFiling System (Beginning November 9, 2020) • Document Search • Application & Docket Portal 2. From the "Search Type" dropdown menu, select "DNRCOG Search for Docket Related Documents." Search iyp. 0NRCOG NewApr:ca::cns 0NRCOG NewAppbcaacns 0NRCOG New Docourrents DNRCOG Search for Docket Related Documents Page 2 3. Input the docket number provided by the operator. DNRCOG Docket Number 4. If you don't have a docket number, or to view any OGDP, scroll down to the "DNRCOG Application Type" dropdown menu and select "OIL Et GAS DEVELOPMENT PLAN." DNRCOG Application Type ADDITIONAL WELLS COMPREHENSIVE AREA PLAN ENFORCEMENT EXCEPTION LOCATION GENERAL ADMINISTRATIVE OIL & GAS DEVELOPMENT PLAN f L-,rD 5. After step 3 or 4, scroll down and click the "Search" button at the bottom of the scroll bar. 6. A list of all related documents will appear. Click on any item to view its contents. How do I view general forms, permits, and data regarding permits and OGDPs? You may use the Daily Activity Dashboard to access frequently requested oil and gas data at the county and state levels. The Daily Activity Dashboard is located in the right-hand corner of the COGCC homepage, and allows you to search and generate custom-made statistical charts, graphs, tables, and maps for information including pending permits, well status, production, welt inspections, Notices of Alleged Violation, active notifications, and spills. The COGCC also provides access to pending and approved permits through its "Permits Search" and interactive map on the COGCC weDsite. To view the status of pending Form 2As (Oil and Gas Location Assessment Permits) through the "Permit Search" function, follow the steps outlined below: 1. Click "Permits" in the green menu bar on the COGCC homepage. This will take you to the "Drilling and Location Permits Search" page. 2. Under Pending Permits, find "Oil Et Gas Location Assessment Permits (Form 2A)". Select "Alt Counties" or a specific county using the drop down menu and click "Go!". Pending Permits (Filed ON or AFTER January 15th, 2021) Oil 8 Gas Location Assessment Permits (Form 2A): All Counties Gol 3. A table will show all pending Form 2As currently under review by the COGCC. ?taboo., f Pending Location Permits - All Counties trio I yore talent .. w *neeL. ...+� .awv y�N. twf �teM sue. fT.:s� ..caw:v •.rew ..a Ise Peet mY L.fr ramie. in,Cent.r ..y,. Teti:+.. .ten ibr.w On Can. . againr w.e . n5 rD ci at.: .a•up r a aw K.N1 .x'g r -C..• --• r_ tamt►tt rr nee Ise i v. . • r+ neee C ..».r ,v-, smut wear. .r:'* • .... ..-.— ,•. .� .an ctl..w a. Clicking a "Doc Number" link will take you to the Public Comments portal for that pending permit. b. Clicking a "Location Name" link will take you to a list of documents related to that permit, including the Form 2A (as submitted by the operator) and supporting documents that are attached to the pending permit application. Can I view pending applications on the COGCC Map? Yes. You may access the COGCC GIS Online Interactive Map by clicking "Maps" in the green banner on the COGCC homepage, then click "Click HERE to access interactive map". You may use the "address search" option to zoom to your address to see oil and gas activity near you. With the map zoomed to your area of interest, you may specify pending permits by checking the appropriate boxes on the left-hand menu. ii Permits O ■ I C.: O ■ ■ Pending Well (Form 2) Permit Approved Well (Form 2) Permit Pending Location (Form 2A) Permit .Approved Location (Form 2A) Permit To select and view a pending application, use the arrow tool to double-click on the pending icons to display the Application. Links COGCC Homepage: https://cogcc.state.co.usilt/home Hearings Page: https://cogcc.state.co.us/reg.htmtft/hearings eFiling system help: http: / /cogcc/documents/ reg/Hearings/External E filing System Users Guidebook 20201109.pdf COGCC GIS Online Interactive Map help: http. //cogcc/documents/about/ Help/Search%2opendin g%20permi is%20on%20the%20COG CC%2omap. pdf Version 1.0 March 9, 2021 Hello