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Home My WebLink About20251026.tiffExhibit 1 Page 1 EXHIBIT 1 APPLICATION FORM Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: USE BY SPECIAL REVIEW (USR) APPLICATION FOR PLANNING DEPARTMENT USE: AMOUNT $ APPLICATION RECEIVED BY DATE RECEIVED: CASE # ASSIGNED: PLANNER ASSIGNED: PROPERTY INFORMATION Is the propertycurrently in violation? IN No irlYes Violation Case Number: _NSA Parcel Number: _See attachment Site Address: N/A, Approximately 3 miles south of Weld County Rd 68 and Private Road 64 intersection, Weld County, CO Legal Descri Lion: S1/4.of Section 34, T66N R63w of 6th Principal Meridian p Section 2, 3, 16, 11, 14, 15, T65N R63w of 6th Principal Meridian Zoning District: A Acreage: 4,018 Within subdivision or townsite? I No / II Yes Name: NiA Water (well permit # or water district tap #): See Exhibit 26 - Water Supply Documentation Sewer (On -site wastewater treatment system permit # or sewer account #): s'e'e' Exhibit 27 - Sewage Disposal Floodplain No / ri Yes Geological Hazard 11 No ! Yes Airport Overlay is No / Dies P ROJECT USR Use being applied for: Sand Mine Name of proposed business: Kersey Mine P ROPERTY OWNER(S) (Attach addiffonal sheets if necessary.) N ame: Steve Wells Company: Wells Ranch LLLP Phone #: (970) 362-1790 Email: jef#bedingfield@4xindustrial.com Street Address: 32010 County Road 63 City/State/Zip Code: Gill, CO 80624 APPLICANT/ AUTHORIZED AGENT (Authorization Form must be included if there is an Authorized Agent) Name: Brady Reece Company: Colorado Sand Company II, LLC Phone #: (970) 978-9858 Email: breece@capitalsand.com Street Address: 2001 Kirby Drive Suite 360 City/State/Zip Code: Houston TX, 77019 I (we) hereby depose and state under penalties of perjury that all statements, proposals, andlor plans submitted with or contained within the application are true and correct to the best of my (our) knowledge. All fee owners of the property must sign this application. If an Authorized Agent signs, an Authorization Form signed by all fee owners must be included with the application. if the fee owner is a corporation, evidence must be included indicating the signatory has the legal authority town for the corporation. 1 r&. y Signature `SP-41/4\bY ge,ece. 1O/2.112.ii Date Signature Date Print Print 07/22 9 Exhibit 1 Page 2 EXHIBIT 1-1 PROPERTY LOCATION INFORMATION Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Colorado Sand Company II, LLC Kersey Mine Property Location Information Parcel Legal Description Site Address Owner 096515100004 7485 ALL 15 5 63 EXC NA WELLS RANCH UPRR RES 096514100001 7484 ALL 14 5 63 NA WELLS RANCH 096511100002 7479 UPRR ALL 11 RES 5 63 EXC NA WELLS RANCH 096510200003 7473 UND 7/8 INT W2 NA WELLS RANCH LLLP 10563 096510100008 7471 0G&M E2 10 5 63 EXC NA WELLS RANCH 096502100001 7458 MIN ALL S ON 2 N2NE4 5 63 EXC & NA WELLS RANCH N2N2S2NE4 (3S) 079934100003 7713 ALL 34 6 63 999 COUNTY ROAD 99 WELLS RANCH WELD 096503100009 7462 UPRR ALL RES 3 5 63 EXC (2S) NA WELLS RANCH OFFICE OF THE SECRETARY OF STATE OF THE STATE OF COLORADO CERTIFICATE OF DOCUMENT FILED I, Jena Griswold , as the Secretary of State of the State of Colorado, hereby certify that, according to the records of this office, the attached document is a true and complete copy of the Report with Document # 20241178656 of WELLS RANCH LLLP Colorado Limited Liability Limited Partnership (Entity ID # 20021363513 ) consisting of 1 pages. This certificate reflects facts established or disclosed by documents delivered to this office on paper through 11/19/2024 that have been posted, and by documents delivered to this office electronically through 11/25/2024@ 07:38:57. I have affixed hereto the Great Seal of the State of Colorado and duly generated, executed, and issued this official certificate at Denver, Colorado on 11/25/2024 @ 07:38:57 in accordance with applicable law. This certificate is assigned Confirmation Number 16748163 Secretary of State of the State of Colorado *********************************************End of certificate******************************************* Notice: A certificate issued electronically from the Colorado Secretary of State's website is fully and immediately valid and effective. However, as an option, the issuance and validity of a certificate obtained electronically may be established by visiting the Validate a Certificate page of the Secretary of State's website, https://www.coloradosos.gov/biz/CertificateSearchCriteriado entering the certificate's confirmation number displayed on the certificate, and following the instructions displayed. Confirming the issuance of a certificate is merely optional and is not necessary to the valid and effective issuance of a certificate. For more information, visit. 0711' website, https://www.coloradosos.gov click "Businesses, trademarks, trade name.! " and select "Frequently Asked Questions." Colorado Secretary of State Periodic Report filed pursuant to §7-90-301, et seq. and §7-90-501 of the Colorado Revised St Colorado Secretary of State ID#: 20021363513 Document #: 20241178656 Filed on: 02/13/2024 10:00:08 AM Paid: $10.00 The entity name is WELLS RANCH LLLP The entity ID Number is 20021363 513 Jurisdiction under the law of which the entity was formed or registered is Colorado The principal office street address is 32010 WCR 63 GILL CO 80624 US The principal office mailing address is 32010 WCR 63 GILL CO 80624 US The name of the registered agent is Jeff T. Bedingfield The registered agent's street address is 2725 Rocky Mountain Ave Ste 300 Loveland CO 80538 US The registered agent's mailing address is 2725 Rocky Mountain Ave Ste 300 Loveland CO 80538 US The person above has agreed to be appointed as the registered agent for this entity. atutes (C.R.S) Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., and, if applicable, the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is named in the document as one who has caused it to be delivered. Name(s) and address(es) of the individual(s) causing the document to be delivered for filing Laura Carbaugh 2032 Caribou Drive Fort Collins CO 80525 US Exhibit 4 Page 1 EXHIBIT 4 ARTICLES OF ORGANIZATION Include incorporation documents if the owner is a business entity. Must include statement/delegation of authority documentation. Attached are the Articles of Organization (Exhibit 4-1), Certificate of Formation (Exhibit 4-2), and Statement of Foreign Entity of Authority (Exhibit 4-3) for Colorado Sand Company II, LLC. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 4 Page 2 EXHIBIT 4-1 ARTICLES OF ORGANIZATION Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 LIMITED LIABILITY COMPANY AGREEMENT OF COLORADO SAND COMPANY II, LLC Dated as of April 4, 2024 THE LIMITED LIABILITY COMPANY INTERESTS EVIDENCED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE"SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. SUCH LIMITED LIABILITY COMPANY INTERESTS MAY NOT BE TRANSFERRED OR RESOLD EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE OR OTHER SECURITIES LAWS, PURSUANT TO REGISTRATION THEREUNDER OR EXEMPTION THEREFROM. IN ADDITION, TRANSFER OR OTHER DISPOSITION OF SUCH LIMITED LIABILITY COMPANY INTERESTS IS FURTHER RESTRICTED AS PROVIDED IN THIS AGREEMENT. PURCHASERS OF LIMITED LIABILITY COMPANY INTERESTS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 This LIMITED LIABILITY COMPANY AGREEMENT (this "Agreement") of COLORADO SAND COMPANY II, LLC, a Delaware limited liability company (the "Company"), is adopted, executed and entered to as of April 4, 2024 (the "Effective Date") by the Company and the Sole Member (as defined below). WITNESSETH: WHEREAS, on April 4, 2024, the Company was formed as a limited liability company by the filing of the Company's Certificate of Formation (as amended, supplemented or otherwise modified from time to time, the "Certificate") with the Secretary of State of the State of Delaware pursuant to and in accordance with the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code, as amended from time to time (the "Act"); NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Sole Member hereby agree as follows: ARTICLE I THE COMPANY Section 1.1 Formation of the Company; Term. The Company has been organized as a Delaware limited liability company by the filing of the Certificate with Secretary of State of the State of Delaware under and pursuant to the Act on April 4, 2024. The Company commenced upon the effectiveness of the Certificate and its existence shall be perpetual, unless and until it is dissolved in accordance with ection 4.1. Section 1.2 Purpose of the Company; Powers. The purposes of the Company are to engage in any lawful act or activity for which limited liability companies may be formed under the Act and to engage in any and all activities necessary or incidental thereto. Section 1.3 Name of the Company. The name of the Company is "COLORADO SAND COMPANY H, LLC", and all business and affairs must be conducted in that name or such other names that comply with applicable law as the Board may approve by Board Approval. Section 1.4 Registered Office; Registered Agent; Principal Place of Business. The registered office of the Company required by the Act to be maintained in Delaware shall be the office of the initial registered agent named in the Certificate or such other office (which need not be a place of business of the Company) as the Board may designate in the manner provided by law. The registered agent of the Company in Delaware shall be the initial registered agent named in the Certificate or such other person or persons as the Board may designate in the manner provided by law. The principal office of the Company shall be at such place as the Board may designate (the "Principal Office"). Section 1.5 Foreign Qualification. The Board shall cause the Company to comply with all requirements necessary to qualify the Company as a foreign limited liability company in foreign jurisdictions if such jurisdictions require qualification, including without limitation, Colorado. Section 1.6 Sole Member. Colorado Sand Company LLC, a Delaware limited liability company (the "Sole Member") shall be the sole member of the Company. 1 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 ARTICLE II MANAGEMENT OF THE COMPANY Section 2.1 Management. (a) The business and affairs of the Company shall be managed by or under the direction of a board of managers (each, a "Manager", collectively, the "Board" or the "Managers "), to whom, subject to the limitations set forth in this Agreement and as otherwise required by the Act, the Sole Member hereby delegates, and in which is vested, the full, exclusive and complete power, authority and discretion to manage and control the administration, affairs and operations of the Company. All actions, determinations, elections, judgments, approvals, considerations, amendments, calls or designations taken or omitted to be taken by the Board pursuant to this Agreement (whether to the Board's satisfaction, sole discretion or otherwise) shall be taken or omitted to be taken only with Board Approval. "Board Approval" is the affirmative vote of, or written consent signed by, the Managers holding a majority of the number of votes of the Managers. (b) Unless explicitly provided otherwise in this Agreement, the Board shall have the power, right and authority on behalf and in the name of the Company and its subsidiaries to carry out any and all of the objects and purposes of the Company and its subsidiaries and to perform all acts which the Board, in its sole discretion, may deem necessary or desirable. Section 2.2 Manager's Standard of Care; Indemnity of Managers. (a) Each Manager shall perform his or her duties in good faith, in a manner it reasonably believes to be in the best interests of the Company. A Manager who so performs its duties as Manager shall not have any liability by reason of being or having been a Manager of the Company and shall be entitled to indemnification as set forth in Section 2.2(b) below. (b) To the fullest extent permitted under the Act, provided that a Manager fully complies with the standard of care set forth in Section 2.2(a), the Manager shall be entitled to indemnification and advancement of expenses from the Company for and against any loss, damage, claim or expense (including attorneys' fees) whatsoever incurred by the Manager relating to or arising out of any act or omission or alleged acts or omissions performed or omitted by the Manager on behalf of the Company; provided, however, that any indemnity under this Section 2.2(b) shall be provided out of and to the extent of Company assets only, and neither the Sole Member nor any other person shall have any personal liability on account thereof. The exculpation of liability and indemnification provided by this Section 2.2 shall not be deemed exclusive of any other limitation on liability or rights to which those seeking indemnification may be entitled under any statute, agreement, Sole Member vote or otherwise. Section 2.3 Compensation of Managers. No Manager shall be entitled to any compensation from the Company for performing the duties of a Manager hereunder. A Manager shall be reimbursed for all reasonable expenses incurred in connection with the management of the Company. Section 2.4 Board Composition; Initial Managers. The composition of the Board, the number of Managers, and the persons comprising the Managers for the Company shall be identical to the persons serving as Managers on the Board of the Sole Member at all times. Any changes in the composition to the Board of the Sole Member shall be immediately effective for the Board of the Company and, if necessary, the Company and the Sole Member agree to take all actions to immediately appoint and remove the Managers of the Company to mirror the Board of the Sole Member. The Managers as of the Effective Date are Jamie Farmer Patterson and David G. Patterson. 2 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 Section 2.5 Meetings of the Board. (a) Meetings of the Board shall be held at least semi-annually and, otherwise, provided a Board meeting has not been held in the previous six (6) months, at the written request of the Sole Member, on at least ten (10) business days' prior written notice. (b) Each Manager shall have one (1) vote. Unless otherwise required by this Agreement, Managers having at least two (2) votes, either present (in person or by teleconference) or represented by proxy, shall constitute a quorum for the transaction of business at a meeting of the Board. (c) Managers may participate in and hold a meeting of the Board by means of conference telephone, videoconference equipment or similar communications equipment by which all persons participating in the meeting can hear each other, and participation in such manner in any such meeting constitutes presence in person at such meeting. Section 2.6 Notice of Board Meetings. Written notice of all meetings of the Board must be given to each Manager at least ten (10) business days prior thereto. Any such notice, or waiver thereof, need not state the purpose of such meeting except as may otherwise be required by applicable law. Attendance of a Manager at a meeting (including pursuant to Section 2.6) shall constitute a waiver of notice of such meeting, except where such Manager attends the meeting for the sole purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. Section 2.7 Actions by the Board. All decisions and actions of the Board shall be approved by Board Approval. Section 2.8 Action by Board Without a Meeting. To the extent permitted by applicable law, the Board may act without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken shall be signed by Managers representing the requisite number of votes that would be required to take the applicable action at a meeting of the Board and, when so signed, such written consent shall constitute Board Approval, and notice of any such action taken shall be provided to those Managers, if any, who have not consented in writing promptly following the taking of such action. The resolutions or written consents of the members of the Board shall be filed with the minutes of the proceeding of the Board. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. Section 2.9 Officers. The Board may appoint such officers of the Company, including at least the president and chief executive officer and secretary of the Company, as the Board may deem necessary or advisable (collectively, the "Officers") and such Officers shall have the power, authority and duties delegated herein or otherwise in writing by the Board. Officers may be given titles or may be designated as "authorized persons." To the extent authorized by the Board, any Officer may have responsibility for the management of the normal and customary day-to-day operations of the Company and act on behalf of, bind and execute and deliver documents in the name and on behalf of the Company, subject to Section 2.8. The Officers of the Company as of the Effective Date are set forth on Exhibit A. The Officers of the Company are required to promptly notify the Board of any material occurrences or incidents relating to the Company's business or operations. The Board may, in its sole discretion, remove any Officer with or without cause at any time, subject to any applicable employment agreement. J 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 ARTICLE III CAPITAL CONTRIBUTIONS AND DISTRIBUTIONS Section 3.1 Contributions. Without creating any rights in favor of any third party, the Sole Member may, from time to time, make contributions of cash or property to the capital of the Company, but shall have no obligation to do so. Section 3.2 Distributions. The Sole Member shall be entitled to (a) receive all distributions (including, without limitation, liquidating distributions) made by the Company and (b) enjoy all other rights, benefits and interest in the Company. ARTICLE IV DISSOLUTION; LIABILITY; EXCULPATION AND INDEMNITY Section 4.1 Dissolution. The Company shall dissolve and its affair shall be wound up at such time, if any, as the Sole Member- may elect. No other event will cause the Company to dissolve. Section 4.2 Liability. The Sole Member, including any of its officers, managers, or members, and the officers and managers of the Company shall not have any liability for the obligations, debts or liabilities of the Company, except to the extent required in the Act. Section 4.3 Duties, Exculpation and Indemnity. Notwithstanding any other provisions of this Agreement, whether express or implied, or any obligation or duty at law or in equity, to the fullest extent permitted by applicable law, the Sole Member, including any of its officers, managers, or members, shall have no fiduciary or other duties (including any duty of disclosure) to the Company, any officer or any other person that is a party to or bound by this Agreement. To the fullest extent permitted by applicable law, the Sole Member, including any of its officers, manager or members, shall not be liable or accountable in damages or otherwise to the Company for any act or omission done or omitted by such party. To the fullest extent permitted by applicable law, the company shall indemnify and hold harmless the Sole Member, including any of its officers, managers, or members, against any loss, liability, damage, judgment, demand, claim, cost or expense incurred by or asserted against such party (including, without limitation, reasonable attorneys' fees and disbursements incurred in the defense thereof) arising out of any act or omission of such party in connection with the Company, unless there has been a final and non -appealable judgment entered by a court of competent jurisdiction determining that, in respect of such act or omission, and taking into account the acknowledgements and agreements set forth in this Agreement, such party engaged in fraud, gross negligence or willful misconduct. Reasonable expenses, including reasonable attorneys' fees and disbursements, incurred by such party and related to any proceeding in connection with which indemnification is sought under this Section shall be advanced by the Company upon written demand by such party; provided that such party shall reimburse the Company for such expenses if it is finally determined that such party is not entitled to indemnification hereunder. 4 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 ARTICLE V MISCELLANEOUS Section 5.1 Governing Law. THIS AGREEMENT IS GOVEREND BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE. Section 5.2 Amendments. This Agreement may be modified, altered, supplemented, or amended at any time by a written agreement executed and delivered by the Sole Member. [Signature Page Follows.] 5 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 IN WITNESS WHEREOF, the Member and the Company have caused this Agreement to be executed by their duly authorized representatives, effective as of the Effective Date. COLORADO SAND COMPANY II, LLC, a Delaware limited liability company �DocuSigned by: By `- 3FCCT21 36489... Name: Jamie Farmer Patterson Title: (--- Pagad by. By: D4E A F3 4 Name: `i3Davicr 6 �aiierSon Title: Manager Sole Member: cwt./ cv/67 COLORADO SAND COMPANY LLC, a Delaware limited liability company By. DocuSigned by: 36489.. Name: Jamie �'a7rmer *Patterson Title: Mc g ed by: By: Name: 4)Tavit°6 °11.fierson Title: Manager 4869-9283-1671, v. 3 DocuSign Envelope ID: 6CED2AD2-BC54-45DB-B293-045E564E1687 EXHIBIT A INITIAL OFFICERS AS OF EXECUTION DATE Officers: Jamie Farmer Patterson, Co -President David G. Patterson, Co -President 4869-9283-1671, v. 3 Exhibit 4 Page 3 EXHIBIT 4-2 CERTIFICATE OF FORMATION Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Delaware The First State I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF FORMATION OF "COLORADO SAND COMPANY II, LLC", FILED IN THIS OFFICE ON THE FOURTH DAY OF APRIL, A.D. 2024, AT 12: 01 O' CLOCK P.M. 3388344 8100 SR# 20241304551 You may verify this certificate online at corp.delaware.gov/authver.shtml Page 1 iteirgy W. ts.ecfary !SI.Ste Authentication: 203192278 Date: 04-05-24 State of Delaware Secretary of State DnVisi0n of Corporations Delivered 12:01 PM 04/04/2024 FILED 12:01 PAT 04/0412024 SR 20241304551 - Filedumber 3388344 STATE OF DELAWARE CERTIFICATE OF FORMATION OF LIMITED LIABILITY COMPANY The undersigned authorized person, on, desiring to form a limited liability company pursuant to the Limited Liability Company Act of the State of Delaware, hereby certifies as follows: 1. The name of the limited liability company is Colorado ...Sand ...Company ....I.l.a.....L-.L- ......... • 2. The Registered Office of the limited liability company in the State of Del . are is located. at 838 Walker Road, Suite 21-2 istreet), in the City of Cover , Zip Code 19904 . The w� name of the Registered. Agent at such address upon whom processagainst this limited liability company may be served. is Registered Agent Solutions, Inc. Name: /.\\4. } k i Authorized Person Patrick I Sweeney Print or Type 4 Exhibit 4 Page 4 EXHIBIT 4-3 STATEMENT OF FOREIGN ENTITY AUTHORITY Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.coloradosos.gov. Colorado Secretary of State Date and Time: 04/10/2024 08:02 AM ID Number: 202414083 00 Document number: 20241408300 Amount Paid: $100.00 ABOVE SPACE FOR OFFICE USE ONLY Statement of Foreign Entity Authority filed pursuant to § 7-90-803 of the Colorado Revised Statutes (C.R.S.) 1. The entity ID number, the entity name, and the true name, if different, are Entity ID number 20241408300 (Colorado Secretary ofState ID number) Entity name Colorado Sand Company II, LLC True name (if different from the entity name) 2. The form of entity and the jurisdiction under the law of which the entity is formed are Form of entity Foreign Limited Liability Company Jurisdiction Delaware 3. The principal office address of the entity's principal office is Street address 2001 Kirby Dr. Suite 360 Mailing address (leave blank if same as street address) (Street number and name) Houston (City) (Province — if applicable) TX 77019 (State) (ZIP/Postal. Code) United States (COUnti y) (Street number and name or Post Office Bay: information) (City) (Province — if applicable) (State) (ZIP/Postal. Code) (Country) 4. The registered agent name and registered agent address of the entity's registered agent are Name (if an individual) or (if an entity) Registered Agent Solutions, Inc. (Last) (Caution: Do not provide both an individual and an entity name.) (First) (Middle) (Suffix) AUTHORITY Page 1 of 3 Rev. 12/01/2011 Street address 36 South 18th Avenue (Street number and name) Suite D Brighton CO 80601 Mailing address (City) (State) (ZIP Code) (leave blank if same as street address) (Street number and name or Post Office Box information) (The following statement is adopted by marldng the box.) VA (City) CO (State) (ZIP Code) The person appointed as registered agent above has consented to being so appointed. 5. The date the entity commenced or expects to commence transacting business or conducting activities in Colorado is 04/10/2024 (mm/dd/yyyy) 6. (If applicable, adopt the following statement by marking the box and include an attachment.) ❑ This document contains additional information as provided by law. 7. (Caution: Leave blank: if the document does not have a. delayed effective date. Stating a. delayed effective date has significant legal. consequences. Read instructions before entering a. date.) (If the following statement applies, adopt the statement by entering a. date and, if applicable, time using the required, format.) The delayed effective date and, if applicable, time of this document is/are (mm/dd/Yyyy hour:minute am/pm) Notice: Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is named in the document as one who has caused it to be delivered. 8. The true name and mailing address of the individual causing the document to be delivered for filing are Delecaris Diana (Last) 10 S Broadway Suite 2000 (First) (Middle) (Suffix) (Street number and name or Post. Office Box information.) St. Louis MO 63102 (City) (State) (ZIP/Postal. Code) United States . (Province —if applicable) (Country) (If the following statement applies, adopt the statement by marking the box and include an attachment..) This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. AUTHORITY Page 2 of 3 Rev. 12/01/2011 Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user's legal, business or tax advisor(s). AUTHORITY Page 3 of 3 Rev. 12/01/2011 Exhibit 8 Page 1 EXHIBIT 8 PLANNING QUESTIONNAIRE Answer the questions per Section 23-2-260. A, B, C & E of the Weld County Code. Please type on a separate sheet. If a question does not pertain to your proposal, please respond with an explanation — do not leave questions blank. Questions included in the USR Procedural Guide are attached. (1) Explain the proposed use and business name. The Kersey Mine is to be an open -cut (truck and hydraulic excavator and/or front-end loader) industrial sand mining and processing operation that will employ a continuously advancing pit with concurrent reclamation. (2) Explain the need for the proposed use. The extraction of construction materials, and the reclamation of land affected by such extraction, are recognized as both necessary and proper activities by the State of Colorado, as per Colorado Revised Statutes 34-32-100 et seq, as amended. Colorado Sand Company II, LLC (CSC) has identified a viable market within Weld County and surrounding areas for industrial sand products to be utilized by the oil and gas sector. Such industrial sand resources or deposits can only be developed in locations where they naturally occur, such as the sand deposit identified and delineated at the proposed Kersey Mine location. Given the presence of a technically feasible and economically viable sand deposit, its proximity to market end -users, and the existence of a viable market for the produced material, CSC has identified and defined a need for the use of a localized source, which will proportionately reduce the need for out-of-state sources. In addition, localized sourcing will provide positive economic and other contributions to Weld County in the fornn of tax revenues, direct employment, indirect support services employment, etc. (3) Describe the current or previous use of the land, if any. The "Permit Area," which refers to the 4,018 acres consisting of the S1/4 of Section 34, T6N, 63W and Sections 2, 3, 10, 11, 14, 15, T5N, R63 W that is being permitted consistent with the Colorado Division of Reclamation, Mining and Safety (DRMS) Construction Materials Regular (112) Operation Reclamation Permit Application., was historically used for grazing but is currently being used for oil and gas well field development. There is a relatively dense presence of active and inactive wells, as well as several natural gas pipelines running throughout the Permit Area. (4) Describe the proximity of the proposed use to residences. Three residences are within one mile of the Permit Area. The nearest residential structure is a Single -Family Residential Occupancy on Agricultural zoning owned by Wells Ranch. This one-story ranch is located within Assessor's Parcel Number 079934100003. The parcel is in Section 34, Township 06 North, Range 63 West. The structure is northwest of the mine plant area, approximately 4,500 feet from the mine plant entrance, 6,300 feet from the plant exit, 1,500 feet from the Permit Area boundary, and 2,900 feet from the active mine area, which refers to Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 2 the 1,902 acres consisting of specific portions of the permit area where extraction will take place for a period of approximately 20 years. The two remaining residences are situated at distances further than the one previously described. A single-family residence lies south of the Permit Area, roughly 3,200 feet from the Permit Area boundary. This one-story ranch house is located on Agricultural zoning within Assessor's Parcel Number 096523300004, which is majority -owned by 70 Ranch LLC (55% interest), with eight other individuals holding a 45% combined interest. The parcel is in Section 23, Township 05 North, Range 63 West. A Single -Family Residential Occupancy on Agricultural zoning owned by 70 Ranch Investment Trust is southwest of the site, roughly 4,700 feet from the Permit Area boundary. This one-story ranch is located within Assessor's Parcel Number 96521400003 in Section 21, Township 05 North, Range 63 West. This list was compiled utilizing the records of the Weld County Assessor available on the Weld County Internet Mapping site, http://www.co.weld.co.us. This data was collected in January 2024. (5) Describe the surrounding land uses and explain how the proposed use is compatible with them. The land directly surrounding the proposed Kersey Mine consists mainly of rangeland and oil and gas wells (active and inactive) and associated well pads. The land within the Site is not currently being used for cattle grazing. Furthermore, situated within 3 miles to the northwest are a sod production fann and a dairy farm facility. Within 1 mile to the southeast, there is a natural gas company facility. To the west, within 3 miles, there is another dairy farm facility, a ranch, and two farms. None of these surrounding land uses will be altered by the proposed mining operation. (6) Describe the hours and days of operation (e.g., Monday through Friday 8:00 a.m. to 5:00 p.m.) In -pit mining, storage, processing, and sales activities will be conducted up to 24 hours per day, seven days per week. CSC requests that the Weld County Board of County Commissioners allow the Kersey Mine to extend the hours of operation beyond daylight hours, as the design and success of this facility is dependent on continuous plant operation. Section 23-4-290.B of the Weld County Code, amended by Ordinance 2019-18, allows the Board of County Commissioners to authorize additional hours of operation for sand and gravel operations when the Board of County Commissioners deems appropriate. (7) Describe the number of employees including full-time, part-time, and contractors. If shift work is proposed, detail number of employees, schedule, and duration of shifts. Total number of full-time employees will be approximately 100. Part -tune employees, or more likely contractors, will be utilized for reclamation work from spring thaw through fall planting season. There will be two 12 -hour shifts: 6/7 a.m. to 6/7 p.m. and 6/7 p.m. to 6/7 a.m, with about 50 employees at the site at the same time. (8) Describe the maximum number of users, patrons, members, buyers, or other visitors that the use by special review facility is designed to accommodate at any one time. Approximately seven delivery drivers (UPS, FedEx, Freight Deliveries, Fuel Deliveries, etc.) and 457 customer truck drivers per day will access the site during operations. 98 employees will also access the site per day. In total, trucks hauling sand from the site and other vehicles are expected to access the site approximately 562 times per day. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 3 (9) List the types and maximum numbers of animals to be on the site at any one time (for dairies, livestock confinement operations, kennels, etc.). There will be no animals on site. Barbed wire cattle fencing surrounds the Permit Area and will remain during mine operations to restrict access to the site. (10) List the types and numbers of operating and processing equipment to be utilized. • Hydraulic Excavator (1) • Front -End Loader (3) • Bulldozer (1) • Articulated Haul Truck (5) • Water Trnick (1) • Roller Compactor (1) • Utility Pickup (3) • Track Loader (2) • Utility Terrain Vehicle (5) (11) List the types, numbers, and uses of the existing and proposed structures. The Permit Area contains 181 operating and abandoned oil and/or natural gas wells, connected via dirt roads. The active mine area only contains plugged and abandoned wells or abandoned well locations as verified with Colorado Energy & Carbon Management Commission records. Buildings proposed for the plant would include a wet plant enclosure, wet sand storage building, mine offices, inaintenance, and dry storage buildings. See Exhibit 9-7: Process Plant Site Plan for further details. Plant equipment and buildings will be painted with a light tan colored paint to blend into the surrounding rangeland areas. (12) Describe the size of stockpile, storage, or waste areas to be utilized, if any. CSC will employ several stockpiles, storage, and/or areas for off -spec sand (i.e. process discard) in conjunction with the Kersey Mine, some of which will be temporary or transitory, while others will be long-term or permanent. The initial year of operations will be utilized to develop sufficient pit void to accommodate salvaged growth medium and process discard stockpiles, with initial pre -strip volumes being placed (and stabilized) within a temporary stockpile ahead of the mining advance. This temporary stockpile is shown as TS -0 in Exhibit D-2: Mining Plan of the DRMS Permit, as approved, attached in Exhibit 38: Copy of DRMS Application. Growth Medium Stocl oile(s) Initial mine development will require the establishment of a temporary "growth medium" stockpile (TS -0) within the west portion of the Year 7 mine block, south of the process plant area (refer to Exhibit 9-1: Use by Special Review Plat Maps (24"x36" — Extraction Plan Map Sheet _5 of 9) . TS -0 is estimated to contain approximately 291,000 cubic yards at full buildout (886 ft x 697 ft x 15 ft high). It is anticipated that concurrent reclamation of portions of the non -utilized areas of disturbance will subsequently deplete the stockpile prior to the advance of active mining into the Year 7 mining block. Mine pit initialization will establish the long-term medium stockpile (TS -1) within the Year 1 mine block pit floor, expanding westward into the mine blocks of year 2 through year 6 Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 4 (refer to Exhibit 9-1: Use by Special Review Plat Maps (24"x36" - Extraction Plan Map Sheets 4 & 5 of 9) . At its maximum buildout, anticipated to be at the end of Year 8, the TS -1 stockpile volume will reach an estimated 592,000 cubic yards, and occupy an area roughly 2,173 ft by 1,638ft (21 acres), with a nominal height of approximately 87 ft. At the end of life -of -mine (and with advanced reclamation during operations), all TS -1 material will be (or will have been) relocated to areas where mining has been completed, in order to facilitate final site reclamation for all affected areas. Thus, no growth medium stockpile(s) will remain present at the conclusion of operations. Run -of -Mine (ROM) Stockpile The ROM stockpile will comprise the "feedstock" material to be processed through the plant. It will be initially established and generally maintained at a relatively constant volume of approximately 352,000 cubic yards of material. It is anticipated that this feature will occupy an area roughly 933 ft by 437 ft (8.5 acres) with a nominal height of approximately 20 ft. It will serve as the surge stockpile for plant operations; thus, it will be constantly added to throughout the duration of life -of -mine; however, plant through -put will be balanced with mine production. As such, its size and volume will remain relatively consistent throughout the life -of -mine, and the feature will be fully consumed during and/or by the end of operations. Process Discard Stockpile Plant operations will generate a process discard stockpile which will be comprised of undersize and oversize materials ("reject") that do not meet saleable product size criteria. Therefore, a process plant discard stockpile will be established (and maintained for the duration of operations) at a location extending westerly from the northernmost portion of the plant area (refer to Exhibit 9-1: Use by Special Review Plat Maps (24"x36" — Extraction Plan Map Sheets 4 & 5 of 9) . The process discard stockpile will be established on the pit floor within the Year 1 pit void, gradually increasing/extending westerly throughout the life -of -mine, eventually occupying portions of the Year 2 through Year 6 pit floors; however, discard materials will also be added in "lifts" to minimize the areal extent of the feature. It is estimated that the process discard stockpile, at full buildout, will contain a volume of approximately 17,600,000 cubic yards, occupying an area roughly 4,561 ft by 1,794 ft (60 acres) with a nominal height of approximately 110 to 120 ft above the surrounding terrain. At the end of life -of -mine, the process discard stockpile will be reclaimed through crest and slope reduction (resulting in a final average height of approximately 70 ft above surrounding terrain), placement of growth medium, and revegetation. Plant (In -Process) Stockpiles Minor stockpiles that are to be temporary in nature will be generated within plant operations areas (refer to Exhibit 9-1: Use by Special Review Plat Maps 24"x36" - Extraction Plan Map Sheet 5 of 9). These will be mainly associated with plant scalping operations which will remove from the process any oversize and/or other reject material, screening operations, filter cake residues (undersize), etc. Each of these varieties of stockpiles will be of limited footprint (area/volume), and interim or temporary in nature. The so -collected materials, comprised of inert reject sands only, will be routinely removed and placed within the process discard stockpile; or, in limited circumstances, utilized for pit backfill. Accordingly, none of these "in -process" stockpiles will remain in place at the end of operations. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 5 (13) Describe the method and time schedule of removal or disposal of debris, junk, and other wastes associated with the proposed use. Solid non -hazardous waste removal will be contracted through the commercial entity Waste Management Corporation, and pickup/removal frequency will be subject to standard contract terms. At a minimum, CSC anticipates weekly removal with interim holding periods being addressed using industrial -sized dumpsters and/or roll -off units, as may be required. All waste oils and other materials such as motor oil, antifreeze, hydraulic oil, and transmission fluid will be managed under vendor contract and disposition subject to all applicable Resource Conservation and Recovery Act guidelines and requirements. CSC will lease mobile equipment and have maintenance agreements in place for servicing mobile equipment. Please see Exhibit 29: Waste Handling Plan for further details. (1 4) Include a timetable showing the periods of time required for the construction of the operation. Site development activities will likely commence within 3 months of obtaining all necessary permits, approvals, and authorizations. Such development activities will include plant area site preparation, followed by plant facilities construction and concurrent pit "development" activities (i.e., the simultaneous establishment of initial, pit -floor process discard stockpile location, thus providing an initial ROM stockpile) to ready the mining zone for full-scale, steady-state operations. CSC estimates approximately 10 to 12 months for site development, plant construction, initial pit development, and plant commissioning. Once all facilities are in place and fully functional, a rapid ramp -up to the "full-scale" production level of approximately 5 million tons of ROM material is anticipated. At a steady-state production level of a nominal 5 million tons of ROM per year (to include Year 1), the life -of -mine is projected to be 20 years. The overall duration of actual misting (and processing) activity (i.e., life -of -nine) is dependent on the total available (economically viable) resource base and is also subject to market conditions, unforeseeable mining or processing interruptions, and/or weather -induced delays, etc. Concurrent reclamation will commence in Year 3 and all mining blocks will have been reclaimed at such time mining operations cease. Each reclaimed mining block will be individually subject to a five-year monitoring and maintenance period to ensure successful revegetation and stabilization, with potential partial bond release(s) as an objective. Site closure and reclamation will continence following completion of all mining and processing operations. Terminal pit reclamation will occur concurrent with plant facilities demolition, with the (then former) plant area being reclaimed using previously stockpiled growth medium (dedicated specifically to final reclamation activities), as further described in the Colorado Division of Reclamation, Mining and Safety (DBMS) 112 Permit Application Exhibit E: Reclamation Plan and the therein -contained Table E-1: Reclamation Sequence and Projected Material Balance. CSC will similarly carry out post -closure monitoring and maintenance for all otherwise (snore recently) reclaimed areas associated with the pit operations (and related haul road infrastructure) for a five-year period commencing upon completion of all final site reclamation activities. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 6 (1 S) Describe the proposed and existing lot surface type and the square footage of each type (Le. asphalt, gravel, landscaping, dirt, grass, buildings). Gravel: 958,793 sq ft Grass: 0 sq ft Buildings: 971,956 sq ft Landscaping: 0 sq ft Concrete: 2,070,595 sq ft (16) How many parking spaces are proposed? How many handicapped (ADA) parking spaces are proposed? Along the gravel Plant Road, a total of 58 parking spots are proposed on a gravel surface. At the south end of the Plant Road, 12 parking spots are proposed near the Mine Office, Supervisor's Office, and Quality Control Lab. Further north, 40 parking spots are proposed along the Plant Road between the Employee Break Room and the Maintenance/Parts Storage Building. An additional six proposed parking spots, along the plant road, are proposed near the Electric House and Scale House. No ADA parking spots are proposed. (17) Describe the existing and proposed fencing and screening for the site including all parking and outdoor storage areas. Barbed wire cattle fencing is in place around the property and will remain throughout the life of the mine. Once areas are reclaimed, new barbed wire fencing will be erected to control the flow of cattle. Safety berms will be constructed around the perimeter of all pit areas. (18) Describe the existing and proposed landscaping for the site. An open mine pit at the site is proposed. The existing landscape consists of rangeland and oil and gas wells. No on - site landscaping is proposed. Please see Exhibit 11: Landscape and Screening Plan for further details. (19) Describe reclamation procedures to be employed as stages of the operation are phased out or upon cessation of the Use by Special Review activity. The final reclamation plan is fully detailed within Exhibit D: Reclamation Plan of the DBMS Permit, as approved in attached Exhibit 31: Engineering, Design, and Operations Plan. The Kersey Mine will utilize "concurrent reclamation" throughout the life -of -mine; thus, at the end of operations, only the terminal pit, plant operations areas, and primary haul roads will require reclamation. The terminal pit will be reclaimed through perimeter slope reduction to a nominal 3H:1V V gradient (and in some instances, as low as 5H:1V), growth medium will be placed to a nominal depth of 8 to 12 in, and the seed mix used to revegetate the pit will be determined in coordination with the landowner, CPW, and Natural Resources Conservation Service (NRCS), and if feasible, implement recommendations for reclamation of the project area with native species and replacement ratios. Thereafter, the area will be subject to a five-year post -closure monitoring and maintenance period, with a financial warranty remaining in place through DRMS. The plant operations area will be reclaimed through the removal and/or demolition of all plant infrastructure. Concrete foundations will be demolished to a nominal depth of 18 in below the existing ground surface, and the inert concrete rubble disposed of within the Year 1 pit void for subsequent cover through the significant crest and slope reduction of the process discard stockpile. Compacted areas (roadways, etc.) will be scarified. All affected area(s) will receive a nominal 8 to 12 in cover of growth medium, and the seed mix used to revegetate the pit will be Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 7 determined in coordination with the landowner, CPW, and NRCS and if feasible, implement recommendations for reclamation of the project area with native species and replacement ratios. Thereafter, the area will be subject to a five-year post -closure monitoring and maintenance period, with a financial warranty remaining in place through DBMS. Remaining primary haul roads will be scarified to reduce/eliminate compaction, covered with a nominal 8 to 12 in growth medium, and revegetated in coordination with the landowner, CPW, and NRCS in order to achieve the desired post -ruining land use characteristics of rangeland. Thereafter, the area will be subject to a five-year post - closure monitoring and maintenance period, with a financial warranty remaining in place through DBMS. (20) Describe the proposed fire protection measures. For minor fires, dispatch will be notified immediately. In the case that a fire is particularly very small in size or considered minor (i.e., smoking wastebasket or smoldering trash can), the onsite fire extinguishers will be used in an attempt to extinguish the fire if possible and the onsite Plant Manager will be notified. For all other fires that are not considered very small in size, the Galeton Fire Protection Fire District will immediately be called by dialing 911. Once connected with Emergency Services, the plant address and exact location of the fire on the plant site area (i.e., building location) will be provided to 911 Dispatch. If the building is not clearly labeled or addressed in a way that is visible from the exterior of the building, a landmark or other distinguishing detail to better describe the exact location of the fire will be provided to 911 Dispatch. Once 911 has been contacted and all appropriate details have been provided to emergency services, the Plant Manager will be notified, and similarly, the location of the fire will be described to him/her. The Plant manager is delegated to be the responder for plant emergencies such as fires. The responsibilities of the Plant Manager, in the case of a fire, are as follows. (1) Evaluate the situational crisis based on the information provided on the telephone call or in -person notification. (2) Coordinate effort to relocate all personnel and other person(s) on site (i.e., customers, vendors, or subcontractors) to the designated "rally" point. (3) Notify Emergency Services (i.e., the Fire Department) — 911 as necessary. (4) Go to the scene of the fire to assist the fire personnel. (5) Conduct a head count to ensure all personnel are accounted for. (6) Inspect the areas for safety prior to re -occupying and give the "all clear" for reoccupation. (7) Following the incident, conduct a formal briefing of the incident and discuss the actions taken. Discuss recommendations to prevent similar accidents and recoiuinended improvements in case a similar incident should occur. In the case that a fire located off -site is observed by an on -site person(s), the person(s) should immediately notify 911 Emergency Services and the Plant Manager so precautions can be made to mitigate the fire from spreading to surrounding areas. If an individual is faced with the circumstance of extinguishing or containing a fire, one should use their own judgment in attempting to control the fire, so as to not sacrifice personal safety. Portable fire extinguishers are in all buildings, structures, and mobile equipment. In the case of vehicle/equipment fires, the following protocol shall be followed. Relevant to vehicle/equipment electrical fires: the operator shall pull to the side of the haul road or to a location that does not pose any safety concerns to surrounding person(s) or structures and extinguish the fire with the fire extinguisher located in the Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 8 vehicle/equipment. If the person(s) fails to control the fire, the person(s) should consult the assistance of a nearby person(s) and request that they call the Fire Department (911 Emergency Services). (21) Explain how this proposal is consistent with the Weld County Comprehensive Plan per Chapter 22 of the Weld County Code. The proposed Permit Area was historically used for grazing but is currently being used for oil and gas well field development. The change in land use will not inhibit any active agricultural production. CSC plans to reclaim the land to rangeland and will therefore be adding to the amount of viable agricultural land within Weld County. Please see question #25 for more details on how CSC will preserve prime agricultural land on site. The proposed nine will operate entirely on privately owned property. The necessary permissions and authorizations from the property owners, Wells Ranch, can be found in Exhibit 3: Lease. The proposed mine will be accessed from the north through a private road. The proposed mine will contribute to the economic growth and stability of Weld County. As stated in both the Weld County Comprehensive Plan and Title 34 of the Colorado Revised Statutes, mineral resources, including sand, contribute essential activities to the state's economy. The more populous counties in Colorado face a shortage of vital deposits, such as sand, and in accordance with the Weld County Comprehensive Plan and Title 34 of the Colorado Revised Statutes, CSC will nine sand deposits in a rational mariner that minimizes resource waste and avoids disrupting the ecosystem and the lives of county residents (Weld County Ordinance 2020-13). CSC will follow all federal, state, and local regulations regarding mine safety. Mining activities will be conducted subject to oversight by the Mine Safety and Health Administration. For further details on health, safety, and welfare impacts, please see question #24, Exhibit 29: Waste Handling Plan, and Exhibit 30: Dust Abatement Plan. To abide by stormwater permits and to responsibly use and protect Weld County natural resources, the proposed mine will be connected to a septic system and will only use water to wash any equipment at the wet plant concrete pad. Please see Exhibit 26: Water Supply Documentation and Exhibit 22: Preliminary Drainage Report for further details on how CSC will consider the conservation of water throughout reining operations. TRC conducted a wetland delineation of the Permit Area in October 2023. A request for an Approved Jurisdictional Determination (AJD) decision was submitted to the USACE on February 8, 2024, and granted by the U.S. Army Corps of Engineers (USACE) on March 11, 2024. The USACE confirmed that the observed surface water feature is not a jurisdictional water of the U.S. under Section 404 of the Clean Water Act (CWA). Please see the attached Wetland Delineation Report (TRC 2023) for further details (Exhibit 8-1). TRC also conducted a habitat assessment of the Permit Area in October 2023. Please see Exhibit 8-2: Habitat Assessment Report for a list of federal and state species of concern that are likely to occur or known to occur within the proposed Permit Area. CSC will consult with Colorado Parks and Wildlife and the United States Fish and Wildlife Service as necessary to protect important species and habitats. (22) Explain how this proposal is consistent with the intent of the zone district in which it is located. (Intent statements can be found at the beginning of each zone district section in Article III of Chapter 23) The proposed Permit Area is in Zone A (Agricultural). Section 23-3-40 of the Weld County Code allows "buildings, structures to be constructed, occupied, operated and maintained" for "open mining and processing of minerals agricultural zones." The site will be returned to rangeland for agricultural purposes after mining is complete. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 9 (23) Explain how this proposal will be compatible with future development of the surrounding area or adopted master plans of affected municipalities. The land surrounding the proposed Permit Area is primarily used for rangeland and oil and gas development. The mine will be concurrently reclaimed to rangeland as mining operations conclude. Operations will neither affect nor alter the area surrounding the site. The Kersey Mine is not located within 2 miles of any municipalities, and thus will not affect the master plans of any municipalities. (24) Explain how this proposal impacts the protection of the health, safety, and welfare of the inhabitants of the neighborhood and county. The Kersey Mine ingress and egress points will be located on the privately controlled section of Weld County Road 64 thus, all high -density mine -related traffic activity will be concentrated in a non-public use area. Upon leaving the privately controlled segment of Weld County Road 64, mine -related traffic will travel west along Weld County Road 68 and north along Weld County Road 67, public -use roads, extending to Colorado Highway 392. All truck traffic vehicles and employees will be subject to U.S. Department of Transportation and State of Colorado safety requirements. All traffic on Weld County roads will be subject to local speed control functions and other requirements that ensure the overall safety of the public. Direct mining activities will be carried out internally, past in a gated access at a location subject to Mine Safety and Health Administration oversight, thus there will be limited and controlled access into and through the active mining area(s). (25) Describe any irrigation features. If the proposed use is to be located in the A (Agricultural) Zone District, explain your efforts to conserve prime agricultural land in the locational decision for the proposed use. While the Kersey Mine is located within an "Agricultural Zone District," the pre -mining land use is mixed rangeland and oil and gas well development. There are no cultivated croplands included in the proposed Permit Area. Consistent with the historic land use, the selected post -mining land use is "rangeland." All components of the proposed reclamation plan (maximum slope gradients, growth medium placement, seed mixture, and five-year monitoring and maintenance plan) are focused on the successful re-establishment of vital, usable rangeland. Accordingly, the affected area, in its post -mining configuration, should closely approximate that of its pre -mining configuration. (26) Explain how this proposal complies with Article V and Article XI of Chapter 23 if the proposal is located within any Overlay Zoning District (Airport, Geologic Hazard, or Historic Townsites Overlay Districts) or a Special Flood Hazard Area identified by maps officially adopted by the County. This application is in full compliance with Chapter 23, Article V, Overlay District Regulations as outlined in the Weld County Code. According to the Weld County Assessor, the site is not located in an Airport Overlay District. (2 7) Detail known State or Federal permits required for your proposed use(s) and the status of each permit. Provide a copy of any application or permit. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 10 Federal permits: • Mine Safety and Health Administration o Identification Number/Certificate of Authorization • U.S. Fish and Wildlife Service o Consultation regarding federally listed species. • U.S. Environmental Protection Agency o Spill Prevention, Control, and Countermeasures Plan • U.S. Army Corps of Engineers o A comprehensive wetland survey of the Permit Area/Affected Area was completed in August 2024. One surface water feature was observed in the Permit Area and is unlikely to be jurisdictional. A request for an Approved Jurisdictional Determination (AJD) decision was submitted to the USACE on February 8, 2024, and granted by the U.S. Army Corps of Engineers (USACE) on March 11, 2024. The USACE confirmed that the observed surface water feature is not a jurisdictional water of the U.S. under Section 404 of the Clean Water Act (CWA) . State permits: • Colorado Department of Public Health and Environment o Air Quality Division Air Pollution Emissions Notice o Permit to Construct and Permit to Operate o Water Quality Control Division, ■ Colorado Discharge System Permits Stormwater General Permit (COR-0400000) for Construction Stormwater Management Plan Spill Prevention, Control, and Countermeasures Plan • Colorado Division of Reclamation, Mining, and Safety (DRMS) Construction Material Regular (112) Operation Reclamation Permit • Colorado Parks and Wildlife o Consultation regarding state -listed species Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 8 Page 11 EXHIBIT 8-1 WETLAND AND WATERBODY DELINEATION REPORT Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: A TRC Kersey Mine Wetland and Waterbody Delineation Report November 20, 2023 Prepared For: Colorado Sand Company LLC 2001 Kirby Drive, Suite 360 Houston, Texas 77019 Prepared By: TRC 1526 Cole Boulevard, Building 3, Suite 150 Lakewood, Colorado 80401 yy��t� • �4 f Y ,,� }.. Aft!' -_gym 1 S r V 1 Z t -a b ` .. - ,,... .9- I r .^ - 4-1 a ♦ .k f 4i T It? la ji.4ii:. _ 4 .‘lrOt i i Ji • ' 1_, gyp. i 1. 3 '-� - .. Y - 1 - a4 .. p- Silk �". - A r - a { _ .., rte- j - ',1•11% _=r . A )) • i T ' h - rJ� � ' Jn�`4 1 �� .i � � r' ' {•L '� Yi1 1. . 1." � "es r 4 ' . W { r =i TRC Table of Contents Acronyms and Abbreviations ii 1.0 INTRODUCTION 1 1.1 Project Location 1 2.0 REGULATORY BACKGROUND 1 3.0 SURVEY METHODOLOGIES 2 3.1 Desktop Review 2 3.2 Wetlands 2 3.3 Waterbodies 3 4.0 RESULTS 4 4.1 Precipitation 4 4.2 Land Use and Vegetation 4 4.3 Soils 5 4.4 Wetlands and Waterbodies 5 4.4.1 Desktop Analysis 5 4.4.2 Wetlands 6 4.4.3 Waterbodies 6 5.0 CONCLUSIONS AND RECOMMENDATIONS 6 6.0 REFERENCES 7 Tables Table 1. Rainfall Summary for Weld County, Colorado 4 Table 2. Soils Identified within the Study Area 5 Appendices Appendix A: Figures Appendix B: Photographs Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report i =i TRC Acronyms and Abbreviations N otation amsl COGCC CR CSC CWA CWQCD ESRI GPS N HD N LCD N OAA N RCS NWI OHWM P roject Study Area TRC U SACE U SDA USFWS U SGS WETS WOTUS Definition Above mean sea level Colorado Oil and Gas Conservation Commission County Road Colorado Sand Company, LLC Clean Water Act Colorado Water Quality Control Division Environmental Systems Research Institute Global Positioning System N ational Hydrography Dataset National Land Cover Database N ational Oceanic and Atmospheric Administration N atural Resources Conservation Service N ational Wetlands Inventory Ordinary High -Water Mark Kersey Mine Project Area used for the purpose of this wetland and waterbody delineation report located within the limits of construction for the proposed Kersey Mine Project. TRC Environmental Corporation U .S. Army Corps of Engineers U .S. Department of Agriculture U .S. Fish and Wildlife Service U .S. Geological Survey Wetlands (Tables) Waters of the United States Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report ii =i TRC 1.0 Introduction Colorado Sand Company LLC (CSC) is proposing to develop the Kersey Mine Project (Project), a surface pit sand and gravel mine supplying fracture -grade sands for regional oil and gas markets. TRC Environmental Corporation (TRC), on behalf of CSC, conducted a wetland and waterbody delineation within the proposed limits of construction (Study Area) for the proposed Project in accordance with Section 404 of the Clean Water Act (CWA). Refer to Figure 1 (Appendix A). The objective of the wetland and waterbody delineation was to identify the spatial extent and location of wetlands, streams, and other aquatic resources within the Study Area. Aquatic resources that are considered Waters of the U.S. are subject to regulation under Section 404 of the CWA and Section 10 of the Rivers and Harbors Act. The jurisdictional regulatory authority of these resources resides with the U.S. Army Corps of Engineers (USAGE) Omaha District (Denver Office). The wetland and waterbody delineation surveys were conducted on October 16 and 20, 2023, by Amy Laartz (Professional Wetland Scientist) and Mason Powers (Biologist). This report summarizes the desktop analyses performed prior to the field survey and the results of the wetland and waterbody delineation. This report also provides TRC's professional opinion on the expected jurisdictional status and anticipated impacts of any delineated features. 1.1 Project Location The Project is situated within approximately 4,018 acres of privately owned property north of County Road (CR) 388 and east of CR 61, approximately 6.5 miles east -north-east of the Town of Kersey, Weld County, Colorado. The Study Area as defined within public land survey system encompasses Township 5 North, Range 63 West, Sections 2, 3, 10, 11, 14, 15, and a portion of Township 6 North, Range 63 West, Section 34. Figure 1 (Appendix A) illustrates the Project Location. 2.0 Regulatory Background Wetlands and other waters of the United States (WOTUS) are protected under Section 404 of the CWA, which governs the discharge of dredged or fill material into WOTUS, and Section 10 of the Rivers and Harbors Act (33 U.S. Code 403), which regulates any work or structures that potentially affect the navigable capacity of a waterbody. Any activity that involves the discharge of dredged or fill material into WOTUS is subject to regulation by the USACE. WOTUS are defined to encompass navigable waterways; interstate waters; all other waters where their use, degradation, or destruction could affect interstate or foreign commerce; tributaries of any of these waters; and wetlands that meet any of these criteria or are adjacent to any of these waters or their tributaries. On August 29, 2023, the U.S. Environmental Protection Agency and the USACE issued a final rule that amends the "Revised Definition of 'Waters of the United States"" to conform key aspects of the regulatory text to the U.S. Supreme Court's May 25, 2023 decision in the case of Sackett v. Environmental Protection Agency. The conforming rule, "Revised Definition of 'Waters of the United States'; Conforming," was published in the Federal Register and became effective on September 8, 2023. Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 1 =i TRC For this delineation, TRC used the September 2023 WOTUS definition rule to evaluate the jurisdiction of wetlands and waterbodies. Section 404 or Section 10 permits issued by the USAGE under the authority of the CWA, as well as all wetlands and waters identified as "waters of the State," are subject to Section 401 water quality certification administered by the Colorado Water Quality Control Division (CWQCD). If the USACE determines that a Section 404 permit is required, CSC will be responsible for the submittal of a joint permit application and Pre -Construction Notification to both the USACE and the CWQCD individually. 3.0 Survey Methodologies 3.1 Desktop Review Prior to conducting field surveys, TRC completed a desktop analysis to assess the likelihood of occurrence and probable location of wetlands and waterbodies within the Study Area using the following data sources: • U.S. Fish and Wildlife Service (USFWS) National Wetlands Inventory (NWI) digital wetland mapping (USFWS 2023); • U.S. Geological Survey (USGS) National Hydrography Dataset (NHD) digital waterway mapping (USGS 2023a); • U.S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) digital soil survey mapping (USDA NRCS 2023); • Aerial imagery interpretation from Google Earth Pro (2023), Environmental Systems Research Institute (ESRI), and National Agriculture Imagery Program (ESRI 2018); and • USGS digital 7.5 -minute. 1:24,000 -scale topographic quadrangle map for Burnsville, Colorado (USGS 2023b). TRC screened historic aerial imagery of the Study Area ranging from 1985-2022 and current aerial imagery for indicators of hydrologic activity and saturation (wetness signatures) that could indicate the presence of unmapped wetlands (Google Earth Pro 2023). Digital soil survey mapping of the Study Area was reviewed by the USDA NRCS (2023). In addition, TRC reviewed precipitation data from approximately 90 days prior to the field investigations using data obtained from a nearby weather station (Greeley UNC, Colorado). Antecedent precipitation data were compared with the 30 -year average precipitation data from the same location to determine if hydrologic conditions at the time of the survey were normal, wetter, or drier than normal (National Oceanic and Atmospheric Administration [NOAA] 2023). 3.2 Wetlands The wetland delineation and determination surveys were conducted in accordance with the Regional Supplement to the Corps of Engineers Wetland Delineation Manual: Great Plains Region Version 2.0 (USAGE 2010), Corps of Engineers Wetlands Delineation Manual Technical Report Y-87-1 (USAGE 1987), and subsequent guidance documents (USAGE 1991a, b; 1992). Wetlands are classified by type using the Classification of Wetlands and Deepwater Habitats of the United States, commonly referred to as the Cowardin classification system (Cowardin et al. 1979). Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 2 =i TRC On -site wetland determinations were made using the three criteria (vegetation, soil, and hydrology) and technical approach defined in the Regional Supplement. According to the procedures described therein, areas that, under normal circumstances, reflect a predominance of hydrophytic vegetation, hydric soils, and wetland hydrology (e.g., inundated or saturated soils) are considered wetlands. The geospatial boundary of each wetland would be captured using a Global Positioning System (GPS)-enabled tablet. Each wetland feature would be assigned a unique feature identification number with a "W" prefix. A Wetland Determination Data Form would be completed for each wetland and its associated upland data point. Upland data points would be assigned a unique feature identification number with a "U" prefix. Representative photos were taken of all identified features. TRC followed the September 2023 WOTUS rule to evaluate the jurisdiction of wetlands and waterbodies. Under this rule, the USACE recognizes jurisdictional determinations for wetlands and aquatic resources that are relatively permanent, standing or continuously flowing bodies of water with a continuous surface connection to a jurisdictional water (e.g., traditional navigable water, territorial seas, interstate water). Wetlands and aquatic resources determined by the USACE as having no continuous surface connection with a jurisdictional water are deemed non - jurisdictional for the USACE. TRC used aerial imagery to supplement field observations to anticipate determinations of downstream connectivity where land access was not available outside the Project. 3.3 Waterbod ies Based on recent USACE guidance and the USACE's 2008 A Field Guide to the Identification of the Ordinary High -Water Mark (OHWM) in the Arid West Region of the Western United States (Lichvar and McColley 2008), delineated waterbodies were identified by the presence of bed and bank or other OHWM indicators. Common identifiable indicators of an OHWM include open water or evidence of a clear, natural line visible on the bank; shelving; changes in soil characteristics; disturbance to, or lack of, terrestrial vegetation; presence of litter and debris; and watermarks indicative of inundation during high water conditions. The OHWM typically represents the potential limits of USACE jurisdiction. The geospatial boundary of each waterbody would be captured using a GPS-enabled tablet. Each waterbody feature would be assigned a unique feature identification number with an "S" prefix. For NWI- and NHD-identified stream features where OHWM indicators were absent, representative photos and photo point locations were recorded. These areas are classified as uplands. The USACE criteria to identify jurisdictional determinations for waterbodies include the continuous presence of OHWM indicators and downstream connectivity to jurisdictional waterbodies. Downstream connectivity for delineated waterbodies in the field would be determined based on the continuous presence of an OHWM and connection to downstream waterbodies. Outside the Study Area where land access was not available, aerial imagery was used to supplement field observations in determining downstream connectivity. For delineated features that did not have a continuous bed and bank or continuous evidence of an OHWM, these features were determined not to have downstream connectivity. For features with periodic OHWM indicators but no downstream connectivity, the geospatial boundary of the waterbody would be mapped where the OHWM indicators were present. Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 3 =i TRC 4.0 Results Desktop and field survey results are presented in the following discussion. 4.1 Precipitation The NOAA Agricultural Applied Climate Information System was used to obtain historical and antecedent rainfall data for the USDA NRCS Climate Analyst for Wetlands Tables (WETS) and NOAA Regional Climate Centers. Historical rainfall records from the Greeley UNC, Colorado weather station were used to determine the normality of rainfall using the Direct Antecedent Rainfall Evaluation Method (NOAA 2023). Precipitation data from the Greeley UNC, Colorado weather station was used to determine the measured rainfall for the three months prior to and during the survey period. Table 1 provides a rainfall summary for the Study Area for the October survey. Based on these calculations, this region of Weld County was determined to be normal for the survey period. Table 1. Rainfall Summary for Weld County, Colorado Prior Month WETS Percentile Rainfall (inches) Evaluation Month: October 2023 30th 70th Measured (inches)Vlleightb Rainfall Conditions Month Scores Three months prior to October 16, 2023, Survey Date 1St September 0.53 1.33 0.28 1 3 3 2nd August 0.69 1.66 1.78 3 2 6 3rd July 0.75 1.85 3.07 3 1 3 Sum 5.13 12 Description d Normal a Condition values are 1 for < 30th percentile, 2 for between 30th and 70th percentiles, and 3 for > 70th percentile. b Month Weight is 3 for the most recent month, 2 for the prior month, and so on. c Score is the product of the Condition and Month Weight values. d Drier than normal (sum of score = 6-9), normal (sum of score = 10-14), wetter than normal (sum of score = 15-18). Source: NOAA 2023. 4.2 Land Use and Vegetation The Study Area topography is a mosaic of flat to small rolling hills. The elevation of the Study Area ranges from 4600 feet above mean sea level (amsI) to 4790 feet amsl.The Study Area is located within the High Plains Level III Ecoregion, classified further as Flat to Rolling Plains within that Ecoregion (Chapman et al 2006). The High Plains Ecoregion is characterized by rolling plains and grasslands situated at a relatively high elevation. Native vegetation in this Ecoregion consists of short -grass or mixed -grass prairie species, scrub, and some sagebrush steppe. Consistent with the aerial imagery, approximately 3,760 acres (approximately 93 percent) of land cover within the Study Area is classified as grassland herbaceous by the National Land Cover Database (NLCD). Approximately 230 acres (6 percent) are classified as shrub/scrub. The remaining approximately Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 4 =i TRC 30 acres (1 percent) are classified as developed open space; developed low intensity; and developed medium intensity (TRC 2023). Based on a review of current and historic aerial photography, the Study Area and adjacent properties have historically been used for fossil fuel extraction (Google Earth Pro 2023). According to Rextag and Colorado Oil and Gas Conservation Commission (COGCC) data, 81 unique pipeline segments are mapped within the Study Area totaling approximately 34.9 miles of documented pipeline. There are 11 segments of crude oil pipeline totaling approximately 8 miles, 69 segments of natural gas pipeline totaling 23.5 miles, and 1 segment of miscellaneous oil pipeline totaling approximately 3.4 miles. All operational segments are classified as gathering pipelines (TRC 2023). 4.3 Soils The National Technical Committee for Hydric Soils defines hydric soils as "a soil that formed under conditions of saturation, flooding, or ponding long enough during the growing season to develop anaerobic conditions in the upper part." The major and minor components of a soil map unit are classified as to how likely they are to be hydric and are rated on a range from hydric to nonhydric. According to the NRCS Soil Survey for Weld County, there are three mapped soil series present within the Study Area (Figure 2 (Appendix A)). All soil map units within the Study Area are classified with a hydric rating of zero (0). Table 2. Soils Identified within the Study Area Symbol Map Unit Soil Type Drainage Class Hydric Soil Rating (percent) of Percent Study Area 69 Valent sand, 0 to 3 percent slopes Excessively Drained 0 34.9 70 Valent percent sand, slopes 3 to 9 Excessively Drained 0 63.7 72 Vona loamy sand, 0 to 3 percent slopes Well Drained 0 1.4 Source: USDA NRCS 2023.Wetlands 4.4 Wetlands and Waterbodies 4.4.1 Desktop Analysis The NWI and NHD public resource data sets depict one stream in the northeast corner of the Study Area and two wetlands in the southeast section of the Study Area. Based on current and historic imagery the wetlands may be associated with current and/or historic impoundments used for cattle operations (Google Earth Pro 2023). See Figure 3 (Appendix A) for NHD and NWI mapped waters. Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 5 =i TRC 4.4.2 Wetlands Based on field observations, no wetlands were identified within the Study Area. NWI-mapped wetland locations were investigated and determined to lack one of more of the three criteria necessary that define a wetland. Although hydrophytic vegetation (saltgrass [Distichlis spicata]) was present, hydric soil indicators were absent and hydrologic indicators were marginal at best. In addition, the NWI-mapped wetland locations occur in uplands adjacent to a remnant u nlined stock pond historically and artificially fed by a well pump powered by solar panels. The pumped water required to fill the cattle pond is no longer necessary as cattle operations have ceased in the Study Area. See Figure 4 (Appendix A) and Appendix B for representative photographs and photo point locations. 4.4.3 Waterbodies One 0.38 -acre manmade stock pond (S-AJL-1) was delineated along a OHWM consisting of a defined bank situated above mud cracks. The stock pond contained no water at the time of survey and contained one inlet structure from a solar powered well pump and no outlet structures. Vegetation was mostly absent except for intermittent patches of saltgrass and kochia (Bassia scoparia) along and above the OHWM bench. See Figure 4 (Appendix A) for mapped features. Representative photos of the stock pond are presented in Appendix B. The NHD-mapped stream located in the northeast section of the Study Area was further investigated. OHWM indicators were absent and there was no indication of a water course in the vicinity of the NHD-mapped feature. See Figure 4 (Appendix A) and Appendix B for representative photographs and photo point locations. 5.0 Conclusions and Recommendations A wetland and waterbody delineation survey was conducted within CSC's proposed Kersey Mine Study Area on October 16 and 20, 2023. This region of Weld County was determined to be within its normal precipitation range for the three months leading up to the survey. Based on field o bservations, no wetlands and one waterbody were identified within the Study Area. The one 0.38 -acre waterbody (S-AJL-1), a former cattle pond, was not observed to have downstream connectivity to federally jurisdictional waterbodies. As none of the features were observed to have downstream connectivity to jurisdictional waters, the Project is not anticipated to be subject to regulation pursuant to Section 404 of the CWA. The u ltimate authority to determine federal wetland and waterway boundaries and jurisdiction rests with the USACE Omaha District (Denver Office). Decisions made by the USACE may result in modifications to the conclusions stated in this report. Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 6 =i TRC 6.0 References Chapman, S.S., Griffith, G.E., Omernik, J.M., Price, A.B., Freeouf, J., and Schrupp, D.L. 2006. Ecoregions of Colorado: Reston, Virginia. U.S. Geological Survey (map SAN scale 1:1,200,000). Cowardin, L. M., V. Carter, F. C. Golet, and E. T. LaRoe. 1979. Classification of wetlands and deepwater habitats of the United States. U.S. Fish and Wildlife Service. FWS/OBS-79/31. Washington, DC. ESRI. 2018. USGS EROS Archive - Aerial Photography - National Agriculture Imagery Program (NAIP). Accessed October 2023, from: https://www.usgs.gov/centers/eros/science/usgs- eros-archive-aerial-photography-national-agriculture-imagery-program-naip Google Earth Pro. 2023. Google Earth Pro historic aerial imagery of 40°24'44.66" N, 104°24'45.25" W. Accessed October 2023. Lichvar, Robert W. and S. M. McColley. 2008. A Field Guide to the Identification of the Ordinary High Water Mark (OHWM) in the Arid West Region of the Western United States. Prepared for the U.S. Army Corps of Engineers Wetland Regulatory Assistance Program. August 2008. National Oceanic and Atmospheric Administration (NOAA). 2023. AgAC/S for Weld County. Accessed October 2023, from: http://agacis.rcc-acis.org/?fips=49007 TRC Environmental Corporation (TRC). 2023. Critical Issues Analysis for the Kersey Mine. Prepared for Colorado Sand Company LLC, November 2023. U .S. Army Corps of Engineers (USAGE). 1987. Corps of Engineers Wetlands Delineation Manual. U.S. Army Corps of Engineers, Waterways Experiment Station, Wetlands Research Program, Technical Report Y-87-1. Vicksburg, MS. January 1987 - Final Report. 92 pp.+ app. U .S. Army Corps of Engineers (USAGE). 1991a. "Questions & Answers on the 1987 Manual," Memorandum from John F. Studt. October 7, 1991. U .S. Army Corps of Engineers (USAGE). 1991b. "Implementation of the 1987 Corps Wetland Delineation Manual," Memorandum from John P. Elmore. August 27, 1991. U .S. Army Corps of Engineers (USACE). 1992. "Clarification and Interpretation of the 1987 Manual," Memorandum from Major General Arthur E. Williams. March 6, 1992. U .S. Army Corps of Engineers (USACE). 2010. Regional Supplement to the Corps of Engineers Wetland Delineation Manual: Great Plains Region. Version 2.0, ed. J. S. Wakeley, R. W. Lichvar, and C. V. Noble. ERDC/EL TR-10-1. Vicksburg, MS: U.S. Army Engineer Research and Development Center. U .S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS). 2023. Web Soil Survey. Accessed October 2023, from: https://websoilsurvey.sc.egov.usda.gov/App/WebSoilSurvey.aspx Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 7 =i TRC U .S. Fish and Wildlife Service (USFWS). 2023. National Wetlands Inventory- Wetlands Mapper. Accessed October 2023, from: https://www.fws.gov/wetlands/data/mapper.html U .S. Geological Survey (USGS). 2023a. National Hydrography Dataset (NHD). Accessed October 2023, from: https://www.usgs.gov/core-science-systems/ngp/national- hydrography/ U .S. Geological Survey (USGS). 2023b. Barnesville, CO [map]. 1:24,000, Topographic Quadrangle Map, Reston VA. Colorado Sand Company LLC — Kersey Mine November 20, 2023 Wetland and Waterbody Delineation Report 8 Appendix A: Figures MAP ROTATION LL) T v� u r• 0 0 it � : q PIE it) r� d CC STUDY AREA BASE tylAP: USGS TOPO tu1AP QUAD: BARNESVILLE DATA SOURCES: TRC 1,250 2,5CID FEET 1.30 000 1" _ 2,500' PROJECT: COLORADO SAND COMPANY, MERSEY MINE WELD COUNTY, COLORADO TITLE: STUDY AREA LOCATION CIE NAB DRNAh LAY A CLINE PR =!J. 535891 CEIECKED °''r' B 1 (I', "r' APPROVED BY: 5 RT DATE: NJ 0 I_ �ti , � .� L l �.,, . �,, •,J FIGURE 1 1526 COLE BOULEVARD BUILDING 3. SUITE 150 LAKEWOOD, CO 80401 PHONE: 303192.5555 R_ _ COLORADO SAND CO_PROPOSAL AP ROTrATi0N: Q J • 'a - ihit sym l Mf unit name Rating I dric Rating %lelicl in 01 Percent orisiO. .dap 69 Valent sand, 0 to 3 percent slopes Excessively drained 0 1,404.50 34,90% 70 Valent send, 3 to 0 percent slopes Excessively drained 0 2,560.80 63.70% 72 Vona loamy sand, 0 to 3 percent slopes well drained 0 57.6 1.40`.', -- Iii . -- _ - - _ Hlt 7 11 . ii 72 r\ 6I9 ) . Pses I : 0 70 `4....' S I 69 C170 69 r 1� , 1 ril ' I � 69 69 i l 0 70 , \\ i I i 4 \ . . PROJECT: COLORADO SAD WELD COUNTY, 'COMPANY, MERSEY COLORADO MINE STUDY AREA SOIL TYPES 0 1,250 2,500 60 - VALENT 70 - VALENT 72 w BASE MAP. ESRI wttsORLD� DATA SOURCES: TPA,. A LOAMY 'aJRS SAND, SAND, IMAGERY° 0 3 SAND, WEB SOIL TO TO BASEM�AP 3 9 0 SURE' PERCENT PERCEPT TO 3 PERCENT SLOPES SLOPES SLOPES TITLE: MRCS SOIL MAP UNITS 1.30,000 FEET r" - 2.500 ' Greeley DRAWN BY: H, C-,' I- V.,1 F PR Citi NO.. 535891 C.:HECKEL) BY B. TRACY PPRai5,ED BY: A. LAARTZ FIGURE 2 i 1t, — 1520 COLE BOULEVARD A BUILDING 3, SUITE 150 � LAKEWOOD, CO 90401 PHONE: 303.792.5555 R H - COLORADO SAND CO_PROPOSAL -I ••••• •• ••• •. •••• '•' ▪ •"• • • • • • • •'• • . • . .'• • • • ' • .' • • • • •,' • • '• ' • • • • •• •f . • • • • • • • • • • • '• • • • • • •• • • •• • • • • • • • • ••• ♦tea • • • • •• • • ' ••• • •• '• • • • •• ••• • • • I • • f • t • • •' • • • • - ♦ •> •' ♦ • •' • • ••S • • • •-. ' ' ••• •' • • •• • •• • • ••• 0 • ♦ • •• ' • •. 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'• ' . • •• • • • • • • • • • ' • • • •• • • • • • 1.9 • • • • • •• ' • • •• + • • • N • • • • • • • • 4 • BASE MAP: ESRI'WORLD IMAGERY* BASEMAP DATA SOURCES: TRC• NHQ, NWI, FEMA PROJECT: COLORADO SAND COMPANY, KE'RSEY MINE WELD COUNTY, COLORADO 1526 COLE BOULEVARD BUILDING 3, SUITE 154 LAKEWOOD, CO 80441 PHONE: 343.792.5655 FEAT' MAP .NOTATION, 0 CFORD1NATc SYSTEM' NAB 1983 S TATEPLANE COLORADO NORTH FIRS. 0.50 Appendix B: Photographs Kersey Mine Project Photographs October 2023 Photo 1. NHD stream not present. Ordinary high water mark (OHWM) indicators are absent. View facing Northwest from the Project Boundary. Photo 3. NWI wetland not present. Area is lacking hydrology and hyd ric soils indicators. View facing North. Photo 5. Stock pond (S-AJL-1). View facing North. Photo 2. NHD stream not present. OHWM indicators are absent. View facing Southeast toward the Project Boundary. NO .�.: t. _maw 7.. Photo 4. NWI wetland not present. Area is lacking hydric soil indicators. View facing North. Photo 6. Stock pond (S-AJL-1). View facing South. Exhibit 8 Page 12 EXHIBIT 8-2 HABITAT ASSESSMENT REPORT Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: A TR C Special Status Species and Habitat Assessment Report May, 2024 Kersey Mine P repared for: Colorado Sand Company LLC 2001 Kirby Drive, Suite 360 Houston, TX 77019 P repared by: TRC 1526 Cole Boulevard, Building 3, Suite 150 Lakewood, Colorado 80401 C �.. �.` :: �/ 4.41/44i., a^ ♦ ' i r -A '-4,1 Cir TL• r t v ''- \..�' tr • .t IN ' i 1 a : ge.'ot A. 's'=`' i. P�G;b} r' p�i_:., .. :- es .,'tit , r.I11,♦ • _ , 1" ..S;r .�.• S•. n ., ii, ' )! e I..D ci4i. :,i � *Weft �� it r r r ;�. r_. .r •� �• ��} �i'f41.1(l . / ; r . , • r r�'r�r- .:' ,rj`+. ,! . y' �I� S f r r''� .. -' i itX� N-• _.y. , r ?qtl - N. r J �- J �• fir J 1 =i TRC Table of Contents Acronyms and Abbreviations ii 1.0 INTRODUCTION 1 2.0 METHODS 2 2.1 Desktop Resource Assessment 2 2.2 Field Survey 2 3.0 RESULTS 3 3.1 Desktop Resource Assessment 3 3.2 Field Survey 7 4.0 CONCLUSIONS AND RECOMMENDATIONS 9 5.0 REFERENCES 10 Tables Table 1. Federally Listed Species Identified as Potentially Occurring in the Study Area 3 Table 2. State -Listed Species Identified as Potentially Occurring in the Study Area 6 Table 3. Observations Collected During the Field Survey Within the Colorado Sands Kersey Mine Study Area 8 Figures Figure 1. Project Area Location Figure 2. Kersey Mine Project Field Survey Results Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 i =i TRC Acronyms and Abbreviations N otation Definition CNHP COGCC CPW CSC ESA FC FE FT GIS I PaC M BTA P roject P roject Area P FE S C S E ST TRC USFWS Colorado Natural Heritage Program Colorado Oil and Gas Conservation Commission Colorado Parks and Wildlife Colorado Sand Company, LLC Endangered Species Act Federal Candidate Federally Endangered Federally Threatened Geographic Information System Information for Planning and Consultation Migratory Bird Treaty Act Kersey Mine Project Area used for the purpose of this special status species and habitat assessment report located within the limits of construction for the proposed Kersey Mine P roject. P roposed Federally Endangered State Special Concern State Endangered State Threatened TRC Environmental Corporation U .S. Fish and Wildlife Service Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 ii =i TRC 1.0 Introduction TRC Environmental Corporation (TRC) was contracted by Colorado Sand Company LLC (CSC) to prepare this habitat assessment for special status species having the potential to occur within CSC's Kersey Mine Project (Project). The Project is a proposed surface pit industrial sand mine located on approximately 4,018 acres in Weld County, Colorado (Figure 1). The Project is located within privately owned open -range lands that have been utilized for oil and gas production. The Project is located north of County Road 388 and east of County Road 61 approximately 6.5 miles east -north-east of the Town of Kersey, Colorado (Project Area). The Project is located within public land survey system Township 5 North, Range 63 West, Sections 2, 3, 10, 11, 14, 15, and Township 6 North, Range 63 West, Section 34. Field surveys were conducted within and adjacent to the Project Area to locate the presence of special status species and associated habitat(s). Special status species include those listed as threatened or endangered, proposed for listing, or candidates for listing under the Endangered Species Act (ESA), the Migratory Bird Treaty Act (MBTA), the Bald and Golden Eagle Protection Act, as well as species listed by the State of Colorado as threatened, endangered, or special concern . Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 1 =i TRC 2.0 Methods 2.1 Desktop Resource Assessment Prior to fieldwork, TRC conducted a desktop resource assessment within and adjacent to the Project Area. The desktop assessment included publicly available Geographic Information System (GIS) databases and information from the U.S. Fish and Wildlife Service (USFWS), Colorado Parks and Wildlife (CPW), and Colorado Natural Heritage Program (CNHP) to identify suitable habitat and the current range for special status species within the Project Area. Sources of information included the USFWS Information for Planning and Consultation (IPaC) Trust Resources Report (Project Code: 2023-0135698) to determine the potential for federally listed threatened and endangered species and Designated Critical Habitat that may occur within and adjacent to the Project Area (USFWS 2023). In addition, TRC obtained the state-wide CPW Threatened and Endangered Species List (CPW 2023a) and utilized public GIS databases (CPW 2023b; COGCC 2023; CODEX 2023) to determine the potential for State of Colorado Threatened, Endangered, or Special Concern to occur within and adjacent to the Project Area. TRC reviewed aerial imagery, existing land use/cover data, species -specific literature, and the Colorado State Wildlife Action Plan to evaluate the known range and presence/absence of potentially suitable habitat within the Project Area (Google Earth Pro 2023; MRLC Consortium 2023; CPW 2015). Species occurrence records within a larger quad -based area were obtained from the CNHP (CNHP 2023). 2.2 Field Survey TRC's field survey was conducted on October 16 and 20, 2023. The field survey Study Area included the Project Area plus 0.25 -mile and 0.5 -mile spatial buffers recommended by CPW (2020). CPW recommends spatial buffers around a project area to determine the presence of project -adjacent raptor nests. Observations outside the Project Area were made from a vehicle using binoculars and spotting scopes where public access along existing roads was available. Within the Project Area, TRC biologists Patti Lorenz and Rose Crispin conducted a ground - based field survey that consisted of scoping the Project Area with binoculars and a spotting scope on foot and from a vehicle to observe species present, locate suitable habitats (e.g., trees, grasslands, riparian areas, prairie dog towns, and other mammal burrows) and locate raptor nests. Also documented at the time of survey were signs such as whitewash or other indicators of past or present nesting (e.g., defensive behavior by raptors in the area, the presence of juvenile birds, and repeated observations of raptors, including ravens, in the same general area) . The locations of any special status species, raptor nests, and suitable habitats were recorded and mapped with a GPS unit. Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 2 =i TRC 3.0 Results 3.1 Desktop Resource Assessment According to the USFWS IPaC Trust Resources Report (USFWS 2023), ten ESA listed or candidate species were identified as potentially occurring within the Project Area or potentially affected as a result of Project implementation (Table 1). No Designated Critical Habitat is mapped within or in the vicinity of the Study Area (USFWS 2023). Table 1. Federally Listed Species Identified as Potentially Occurring in the Study Area Common Name Scientific Name Status' Preliminary Analysis y within the Stud Areal y Mammals jumping Preble's meadow mouse Zapus hudsonius preblei FT Unlikely. developed undisturbed source. combination These Suitable plains grassland of riparian riparian grasses, habitat communities areas forbs, for vegetation the include and species shrubs. with and a relatively consists adjacent, a nearby of water dense well relatively - Gray Wolf Canis lupus FE Unlikely. throughout IPaC, only predator needs due Lone, management the to the to dispersing state be location considered of Colorado. of program. gray the if the wolves According Study Project may Area, includes be to this the present species USFWS a Tricolored bat Perimyotis sublavus PFE Unlikely. abandoned During found occasionally 2024). area, may may habitat because existing in but provide forage the Forested In forested will oil oil Project spring, through not and winter, mines, utilize and potential be gas habitats habitats gas disturbance summer, removed tricolored and human the structures. structures roosting culverts are Project where structures bats and as not will habitat a associated fall, adjacent Area. are they found result remain tricolored often roost for and However, within of to 100 roosting the individual found with in the trees, the Project feet bats roads. Project roosting from in (USFWS Project are caves, but bats may Area Birds Eastern black rail Laterallus jamaicensis ssp. jamaicensis FT Unlikely. a year-round wintering wet saltmarshes, meadows The habitat resident. and species including for impounded the is Suitable known species riparian wetlands. to nesting, occur consists marshes, in migrating, of Weld marshes coastal County as and and prairies, Piping plover Charadrius melodus FT None. Platte species activities Platte, The River or is only or Laramie Project Basin. use required would River Area Based occur is located on for basins. consideration the within within USFWS the North the if IPaC water Upper Platte, Report, -related South South this Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 3 =i TRC Common Name Scientific Name Statusl Preliminary Analysis y within the Stud Y Areal Whooping crane Grus americana FE Unlikely. affected September agriculture during Based through fields on migration for the October), stopover USFWS season as habitat IPaC, (April whooping this during species to mid -May, cranes migration. may often be or mid - use Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 4 =i TRC Common Name Scientific Name Statusl Preliminary Analysis y within the Stud Y Areal Fish Pallid sturgeon Scaphirhynchus albus FE None. Platte species activities Platte, River The or is or only Laramie Project use Basin. required would River Area Based occur is located for basins. on consideration the within within USFWS the North the IPaC if Upper water Platte, Report, -related South South this Insects Monarch butterfly Danaus plexippus FC Possible. host the butterfly ESA; requirement Project plant) therefore, Suitable does for Area. the not for an the breeding monarch As receive effects monarch a candidate statutory determination habitat butterfly butterfly. species, (i.e., protection obligate may be the is not milkweed present monarch under a the within Plants Ute ladies'- tresses Spiranthes diluvialis FT Unlikely. variable. banks, perennial perennial maintained point Suitable One streams, graminoid- by example bars, grazing, habitat floodplains, with and of periodic for a the suitable high-water forb-dominated or flooding, species oxbows habitat table is complex includes associated and vegetation or short, mowing. alluvial and with Western prairie fringed orchid Platanthera praeclara FT None. Platte species activities Platte, River The or is or only Laramie Project use Basin. required would River Area Based occur is located for basins. on consideration the within within USFWS the North the IPaC if Upper water Platte, Report, -related South South this Sources: USFWS 2023; Cornell Lab of Ornithology 2023, USFWS 2024. 1 FE = Federally Endangered; FT = Federally Threatened; FC = Federal Candidate; PFE = Proposed Federally Endangered 2 Potential for occurrence based on desktop analyses. Informal consultation with the USFWS Colorado ESFO will be required to confirm these preliminary findings. The CPW state Threatened and Endangered Species List identifies 31 species including 1 amphibian, 8 birds, 14 fish, and 8 mammals. State -listed threatened and endangered species are protected pursuant to Colorado Revised Statutes 33-2-105 and 33-6-109, and CPW Final Regulations Chapter 10, Article I, #1000 -Protected Species, wherein harassment, take, or possession of state -listed threatened and endangered species is prohibited. Species designated as State Special Concern are not protected under the statutory category described for threatened and endangered species but are considered in this analysis. Table 2 presents an assessment of each species that has the potential to occur within the Study Area based on known range and habitat requirements. Of the species listed in Table 2, only the ferruginous hawk has been documented by CNHP as observed in the Project vicinity (CNHP 2023). Based on the desktop resource assessment, no historic raptor nest sites have been documented within 0.5 miles of the Study Area. Based on habitat preference, geographic range, and habitat mapping (including desktop and field verification) conducted by TRC for the Project, suitable habitat for raptors, including burrowing owls, does occur within the Study Area. Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 5 =i TRC Table 2. State -Listed Species Identified as Potentially Occurring in the Study Area Common Name Scientific Name Status Suitable Habitat Potential Project for Occurrence in Area Mammals Black- Footed Ferret Mustela nigripes SE Open prairie. grassland and Unlikely. present However, coordination cleared habitat black Colorado after no ranging longer -footed determining (the within all black Prairie the (including black contain with main ferrets) -footed the USFWS dog -tailed CPW prey that any Project in towns Weld ferrets. in source these wild prairie eastern has Area. County), are block areas free dog of - - Plains Pocket Gopher Geomys bursarius SC Loose, soils plains plant of cover. sandy/silty the with eastern edible Likely. within the Suitable in Project habitat Area. is found Birds Burrowing Owl Athene cunicularia ST Short prairie agricultural associated mammal to and mixed burrows. fields; with -grass small Likely. within the Suitable Project habitat Area. is present Ferruginous Hawk Buteo regalis SC juniper Grasslands, sagebrush saltbush-greasewood shrublands, edges to elevations. moderate of forests pinyon- country, and at low Unlikely. not Project structures Area pairs. likely could Area. Suitable to be adjacent be Existing utilized present nesting to oil the by within and habitat Project nesting the gas is Long Curlew -billed Numenius americanus SC Open relatively and vegetation. habitat prairies, and fields. small, agricultural habitats includes short pastures, woody Breeding with grass Possible. within the Suitable in Project habitat Area. is found Mountain Plover Charadrius montanus SC Prairie arid fields. plains, grasslands, and Possible. within the Suitable in Project habitat is Area. found Source: USFWS 2023; CODEX 2023; Cornell Lab of Ornithology 2023; CPW 2023a. 1 SE = State Endangered; ST = State Threatened; and SC = State Special Concern Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 6 =i TRC 3.2 Field Survey During the field survey, the Study Area was observed to consist entirely of grassland habitat dissected by oil and gas wells and gravel access roads. One special status species, the burrowing owl, was observed during the field survey. Table 3 lists TRC's observations documented during the field survey. Figure 2 shows the locations of TRC observations. Five active black -tailed prairie dog towns were recorded within the Study Area. Burrowing owls were observed within two of the prairie dog towns during the field survey (Table 3; Figure 2). One active burrowing owl burrow/nest site (Map ID 10) was identified within a prairie dog town (Map ID 09) withing the 0.5 mi buffer of the Project Area during the October 16th, 2023, survey. A second burrowing owl was observed flying (Map ID 03) in another prairie dog town (Map ID 02), but no burrow/nest was observed in the vicinity of the burrowing owl in flight. No federally listed, proposed, or candidate species were observed during the field survey. Of the ten species analyzed (Table 1), suitable habitat exists in the Study Area for the monarch butterfly. However, the monarch's obligate host species, milkweed was not observed at the time of the survey, but individual plants could have been missed due to the timing of the surveys outside of the flowering period. Existing oil and gas structures or road culverts adjacent to the Project may provide suitable roosting habitat for the tricolored bat. However, roosting habitat will not be removed as a result of Kersey Mine implementation and all disturbance will remain 100 feet from the existing oil and gas structures. Food and water sources (agricultural reservoirs and wetlands and waterbodies associated with the South Platte River) are located within two miles of the Project. Therefore, there is potential for this species to occur as a transient while foraging through the Permit Area. Areas of suitable habitat for all of the State listed threatened, endangered, and special concern species listed in Table 2 were observed within during the field survey. However, prairie dog towns recorded during the field effort are not present in areas of black footed ferret reintroductions. Additionally, the prairie dog towns observed are small in size and fragmented throughout the Study Area and, therefore, are not ideal for potential future reintroductions of the black -footed ferret. Additional raptor species observed during the survey included one red-tailed hawk perched within the Study Area and multiple northern harriers observed flying through the Study Area (Table 3; Figure 2). Incidental wildlife observations included a variety of species that are common to the area. Two songbird species, horned larks and western meadowlarks, were seen throughout the Study Area. Incidental mammal observations consisted of black -tailed prairie dogs, pronghorn antelope, cottontail rabbits, and coyote (scat observed). Two species of reptiles observed were prairie rattlesnakes and an ornate box turtle (Table 3; Figure 2). Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 7 =i TRC Table 3. Observations Collected During the Field Survey Within the Colorado Sands Kersey Mine Study Area Date Map ID Observation Comments 10/16/2023 01 Northern Harrier Species observed; 3 adults observed foraging/soaring/perched. 10/16/2023 02 Prairie Dog Town Active, burrowing owl and mountain plover habitat; Prairie rattlesnake observations within this town. 10/16/2023 03 Burrowing Owl Species observed; Observed flying at Map ID 02. 10/16/2023 04 Burrow Plains observed. pocket Rabbit gopher scat habitat; nearby. Burrows No pocket 3-4 inches gophers in diameter; observed at soft the sandy time of soil; survey. no mammals 10/16/2023 05 Burrow Plains pocket gopher habitat. No mammals observed at the time of survey. 10/16/2023 06 Prairie Dog Town Active. Suitable burrowing owl and mountain plover habitat. 10/16/2023 07 Prairie Dog Town Active. Suitable burrowing owl and mountain plover habitat. 10/16/2023 08 Northern Harrier Species observed flying through the Project Area. 10/16/2023 09 Prairie Dog Town Active. Suitable burrowing owl and mountain plover habitat. 10/16/2023 10 Burrowing Owl Species observed within a burrow at Map ID 09. 10/16/2023 11 Red-tailed Hawk Species observed perched on oil and gas structure 10/20/2023 12 Mountain Plover Habitat No mountain plover observed at time of survey. 10/20/2023 13 Prairie Dog Town Active. within Suitable this town. burrowing owl and mountain plover habitat. Prairie rattlesnake (2) observations 10/20/2023 14 Ornate Box Turtle Species observed at Map ID 13. Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 8 =i TRC 4.0 Conclusions and Recommendations Based on the special status species and habitat assessment, the following critical issues were identified that could result in the need for additional agency consultation and mitigation measures: • Suitable habitat for the monarch butterfly could not be ruled out during the field survey. Additional surveys during the milkweed's flowering season are recommended to determine the potential for presence of monarch butterflies and their obligate host species within the Project Area. As a Federal Candidate species, the monarch butterfly does not receive statutory protection under the ESA. • Existing oil and gas structures adjacent to the Project Area may provide suitable roosting habitat for the tricolored bat. However, Project disturbance will remain, at a minimum, 100 ft. from the existing oil and gas structures. Therefore, disturbance to roosting habitat as a result of the Project is not anticipated. • Burrowing owls (State Threatened) were observed in the Study Area. Potentially suitable habitat for the other five state -listed species (Table 2) may be present within the Project Area. TRC recommends consultation with CPW to obtain recommendations regarding the minimization of impacts on these species. • One active burrowing owl nest was documented within the Project Area during the October 2023 field survey. CPW recommends restricting ground disturbance and human encroachment within 1/4 mile of an active nest during the nesting season (March 15 through August 31). If future ground disturbance, facilities demolition, and human encroachment will occur within prairie dog towns between March 15 through October 31, additional pre -construction surveys should be conducted following CPW survey guidelines to determine the presence or absence of burrowing owls and their nests. • Because burrowing owls may be present at a nest site up to one month prior to egg laying and several months after the young have left the nest, CPW recommends that efforts to eradicate prairie dog towns or destroy abandoned towns not occur between March 15 through October 31 (CPW 2020). • Other migratory bird species observed in the Project Area include northern harriers, a red-tailed hawk, and a number of common songbird species. To ensure compliance with the MBTA, CPW recommends implementing avoidance measures such as performing land clearing/disturbance and existing facilities demolition outside of the breeding season for most migratory birds (August 1 through March 14) (CPW 2020). If future ground disturbance, facilities demolition, and human encroachment will occur during the breeding season (March 15 through July 31), additional pre -construction surveys for nesting birds should be conducted and nest buffers and avoidance periods should be implemented around active avian nests based on CPW and USFWS recommendations. If the start of ground disturbing activities and human use within the Project occurs prior to the start of the nesting season and nesting birds move into the area within the recommended buffer, TRC recommends consulting with CPW and the USFWS on additional mitigation measures, such as the use of a monitor during construction activities. Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 9 A TRC 5.0 References Colorado Conservation Data Explorer (CODEX). (2023). GIS Online Mapping. Accessed October 2023 at: Map J CODEX (colostate.edu) Colorado Natural Heritage Program (CNHP). (2023). CNHP Spatial Layers — Statewide Elements by Quad. Accessed October 2023 at: https://cnhp.colostate.edu/maps/cnhp- spatial-layers/ Colorado Oil and Gas Conservation Commission (COGCC). (2023). GIS Online Mapping. Accessed October 2023 at: https://cogccmap.state.co.us/cogcc gis online/ Colorado Parks and Wildlife (CPW). (2015). State Wildlife Action Plan. Accessed October 2023 at: https://cpw.state.co.us/aboutus/Pages/StateWildlifeActionPlan.aspx Colorado Parks and Wildlife (CPW). (2020). Recommended Buffer Zones and Seasonal Restrictions for Colorado Raptors. Colorado Parks and Wildlife. (2023a). Threatened and Endangered Species List. Accessed October 2023 at: https://cpw.state.co.us/learn/Pages/SOC- ThreatenedEndangeredList.aspx. Colorado Parks and Wildlife (CPW). (2023b). Wildlife Species Map Application. Accessed October 12, 2023 at: https://cpw.maps.arcgis.com/apps/instant/interactivelegend/index.html?appid=b3e1f4c17 e98481c85f9683b02e91250 Cornell Lab of Ornithology. (2023). All About Birds. Accessed October 2023 at: https://www.allaboutbirds.orginews/ Google Earth Pro. (2023) Current and historic aerial imagery of 40°24'43.03"N, 104°24'54.12"W. Accessed October 2023. Multi -Resolution Land Characteristics (MRLC) Consortium. (2023). MRLC Viewer All National Land Cover Database (NLCD) 2076 Contiguous United States Land Cover. Accessed October 11, 2023, at: https://www.mrlc.gov/viewer/ U.S. Fish and Wildlife Service (USFWS). (2024). Environmental Conservation Online System (EGOS). Tricolored bat (Perimyotis subf/avus)Accessed May 22, 2024 at: https://ecos.fws. gov/ecp/species/10515. U.S. Fish and Wildlife Service (USFWS). (2023). Unofficial IPaC resource list for the Sands Project, September 29, 2023. Colorado Sand Company LLC — Kersey Mine Special Status Species and Habitat Assessment Report May 2024 10 COORDINATE SYSTEM: NAD 1983 STATEPLANE COLORADO NORTH FIRS 0501 FEET, MAP ROTATION: 0 - SAVED BY: JSTRONA ON 6/4/2024, 16:21:20 PM; FILE PATH: T.'I1-PROJECTSICOLORADO SAND COMPANY1535891 KERSEYMINEI2-APRXICOLORADO SAND CO KERSEY MINE.APRX: LAYOUT NAME: FIGURE 1 SITE LOCATION 18 K67 -, r Barnesville anus Ile •Station •a-,- ;!Jonesville School Ali 1 1 •• H46662 Wells 1 f C trek 1 e • w • 17 1 20 �M • • :• •• .• •• 29 f.� =wea WSI- tt• • `. a••aaaa.•• �4v ass ae maae•aaa ea .aaaaaa•aaa1, watts seat 1 I r• 44677 4 • ,:i .: • •• `• .4. • A. • . .,ir1 •♦ {e ea 4674 • • 1 : •t6do I e se's e •.••• ••. •Iy2° 21 28 !a, • ••k •• s 47:4 , 33 , .y.,.• 41 e 4x661 • • rb..,' ;Al ••••i'4•'PM. ............ /,} 960.1 5 +••Zes s ptomain, Semen ad Co :6401 �aL_4 aW611 1TH Eypey 2 r 19 460! • •i LATT�, 30• - ems= 067? 45341 c :• • •♦ 1 4 rata eta.. •.a••.•• ,yes.y°• 444 4 �4:..a.•r•.au.a•aay('anll a 17 ♦663 64666 • .• 4 • G 9 .I • 4597 4$3t- '•• IyER510 204 44,4 s' "- a • • e •<• •�••b• .NTAKE 1 • Ta � • I 1 A" • • 16 • e ••730 t •. I �` , •..•.••awsuw • N, ♦ -•••••• r f �' •+• I •- -, • • • • • • • • ;27 •a, • 34.1 • 'Wells C •J 0 • 4401 I J E {4ii?ice-'. 1 t •ess i 4156444414 '•590 • • r —\� 26 /• I •. -• ^44 Wedmill **Oft • 5 ,1 .rio r f`I ;Ole isek me -d I I 13 • t C 36 1 i 1 1 ti • J BM Pr 2 • ae I u.a s� a P • • • a ---"" -.• dF45E.4 YYirdmill ., t \Ia•< 25 ; e_ STUDY AREA USGS 24K QUADRANGLE BOUNDARY WY NE COI COLORADO SAND COMPANY II, LLC KERSEY MINE WELD COUNTY, COLORADO STUDY AREA LOCATION DRAVVN BY: PROJ. NO.. 535891 CHECKED BY: APPROVED BY: R. JENKINS BASE MAP: USGS TOPO MAP QUAD: BARNESVILLE DATA SOURCES: TRC NM OK JUNE 2024 0 2,000 4,000 FEET TRC 1526 COLE BOULEVARD BUILDING 3, SUITE 150 LAKEWOOD, CO 80401 PHONE: 303.792.5555 COLORADO SAND CO_KERSEY MINE OORDINATE SYSTEM: NAD 1983 STATEPLANE COLORADO NORTH F1PS 0501 FEET, MAP ROTATION: D GURE 2 HABITAT ASSESSMENT FIELD SURVEY ON 5. 'A 13:4;:54 PM: FILE PATH: T11-PROJECTSICOLORADO SAND GOAMPANY1535891 KERSEYMINEI2_-APRXICOLORADOSANDCO KERSEYMINF_.APR.Y: CC PROJECT: Q, PROJECT AREA CO 0.5 -MILE BUFFER .025 -MILE BUFFER V, PRAIRIE DOG TOWN DELINEATED BOUNDARY O BURROWING OWL O MOUNTAIN PLOVER HABITAT O NORTHERN HARRIER O PLAINS POCKET GOPHER HABITAT O ORNATE BOX TURTLE O PRAIRIE DOG TOWN O RED-TAILED HAWK BASE MAP: ESRI "WORLD IMAGERY' BASEMAP DATA SOURCES: TRC 0 1,500 3,000 FEET 1:36,000 1" =3,000' COLORADO SAND COMPANY II, LLC KERSEY MINE WELD COUNTY, COLORADO TITLE: HABITAT ASSESSMENT FIELD SURVEY RESULTS Greeley DRAWN BY: A. CLINE PROJ. NO.: 535891 CHECKED BY: B. TRACY APPROVED BY: P. LORENZ DATE: MAY 2024 FIGURE 2 TRc1526 COLE BOULEVARD BUILDING 3, SUITE 150 LAKEWOOD, CO 80401 PHONE: 303.792.5555 FILE: COLORADO SAND CO_KERSEY MINE Exhibit 21 Page 1 EXHIBIT 21 PUBLIC WORKS QUESTIONNAIRE (1) Describe the access location and applicable use types (i.e., agricultural, residential, commercial/industrial, and/or oil and gas) of all existing and proposed accesses to the parcel. Include the approximate distance each access is (or will be if proposed) from an intersecting county road. State that no existing access is present or that no new access is proposed, if applicable. All administrative and plant facilities and related processing activities will be located in central portion of Section 2; Township 5N, Range 63W, with plant ingress and egress from the north Permit Area boundary through a private road extending three miles north to its intersection with Weld County Road (WCR) 68, near the Chevron Processing Plant. The primary access route would continue west on WCR 68 for about 1,000 feet before continuing north on WCR 67 for two miles before joining Colorado Highway 392. See Exhibit 21-1: Site Access for further detail. All access to facilities within the Permit Area is existing and no new access is proposed. The land use along the access route is a mix of oil and gas and agriculture. (2) Describe any anticipated change(s) to an existing access, if applicable. No changes to existing access are anticipated. (3) Describe in detail any existing or proposed access gate including its location. An existing guard shack is located at the Wells Ranch property entrance, approximately 3 miles north of the permit area. The guard shack consists of a building and a locked access gate with a keypad. This guard shack restricts access to the Wells Ranch property and can only open with the input of a code. The installation of an access gate at the Permit Area entrance and exit is proposed (Exhibit 21-2: Mine Access Route). The gate will be closed except to allow vehicles inside and outside the Mine Plant Area. (4) Describe the location of all existing accesses on adjacent parcels and on parcels located on the opposite side of the road. Include the approximate distance each access is from an intersecting county road. All adjacent parcels are used for oil and gas development and are only accessible via private roads. The closest county road, Weld County Road 68, is approximately 3 mules north of the Permit Area boundary. See Exhibit 21-1: Site Access for further detail. (S) Describe any difficulties seeing oncoming traffic from an existing access and any anticipated difficulties seeing oncoming traffic from a proposed access. The intersection sight distance at the private County Road 64 is adequate for passenger vehicles, single unit trucks, and combination trucks to turn onto WCR 68. See Exhibit 23: Traffic Impact Study for further detail. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 21 Page 2 (6) Describe any horizontal curve (using terms like mild curve, sharp curve, reverse curve, etc.) in the vicinity of an existing or proposed access. Several mild curves exist along the private access road between the access gate ,just south of Weld County Road 68 and the mine entrance. No sharp curves or reverse curves exist in the vicinity of the proposed access road. See Exhibit 21-2: Mine Access Route and Exhibit 23: Traffic Impact Stucky for further detail. (7) Describe the topography (using terms like flat, slight hills, steep hills, etc.) of the road in the vicinity of an existing or proposed access. South of the proposed access gate at the intersection between Weld County Road 68 and the private access road, the topography of the private access road remains mostly flat for the initial 0.5 miles, featuring a slight hill ascending by about 50 feet. The subsequent 0.75 miles include two gentle turns and another slight lull, accumulating a total elevation gain of 50 feet. At the plant area, the elevation decreases by 50 feet, settling at 4,750 feet while mamtairung a level surface. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 21 Page 3 EXHIBIT 21-1 SITE ACCESS Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 21 Page 4 EXHIBIT 21-2 MINE ACCESS ROUTE Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 25 Page 1 EXHIBIT 25 ENVIRONMENTAL HEALTH QUESTIONNAIRE (1) Discuss the existing and proposed potable water source. If utilizing a drinking water well, include either the well permit or well permit application that was submitted to the State Division of Water Resources. If utilizing a public water tap, include a letter from the Water District, a tap or meter number, or a copy of the water bill. Please see Exhibit 26: Water Supply Documentation. (2) Discuss the existing and proposed sewage disposal system. What type of sewage disposal system is on the property? If utilizing an existing on -site wastewater treatment system, provide the on -site wastewater treatment permit number. (If there is no on -site wastewater treatment permit due to the age of the existing on -site wastewater treatment system, apply for an on -site wastewater treatment permit through the Department of Public Health and Environment prior to submitting this application.) If a new on -site wastewater treatment system will be installed, please state "a new on -site wastewater treatment system is proposed." (Only propose portable toilets if the use is consistent with the Department of Public Health and Environment's portable toilet policy.) CSC will install a commercial septic system on site. Please see Exhibit 27: Sewage Disposal Documentation. (3) If storage or warehousing is proposed, what type of items will be stored? • Sand • Water Treatment Chemicals (flocculant) • Equipment Spare Parts • Diesel Fuel • Diesel Exhaust Fluid • Gasoline • Gases for Welding and Cutting Minimal equipment storage will take place on site. Equipment maintenance will be conducted on an as -needed basis by on -site Contractors. Major repairs and maintenance activities will not occur on site. (4) Describe where and how storage and/or stockpile of wastes, chemicals, and/or petroleum will occur on this site. Off -spec sand will be stored in the process discard stockpile (PDS), west of the plant facility. During mining and as part of final reclamation, this pile will be covered with growth media and seeded, with final vegetation meeting state reclamation criteria. Trash and refuse will be stored in roll off dumpsters and transported to a local landfill. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 25 Page 2 Chemicals and petroleum products will be stored inside a covered fueling station. Water treatment chemicals will be stored within the water treatment building. All chemicals will be handled according to the recommendations in Exhibit 25-1: Safety Data Sheets. (S) If there will be fuel storage on site, indicate the gallons and the secondary containment. State the number of tanks and gallons per tank. There will be off road diesel fuel on site. A 12,000 -gallon double walled tank will be at a fueling station, and a portable 1,000 -gallon double walled tank will be in the pit for track equipment. In accordance with 40 CFR 112, a spill prevention. control, and countermeasures (SPCC) plan will be developed and maintained on site. The SPCC Plan will depict the location of all petroleum storage tanks, secondary containment, and response/reporting procedures in the event of a spill or release. The tank will include labeling per National Fire Protection Association (NFPA) requirements. Monthly and annual inspections will be conducted in accordance with the inspection and maintenance requirements to be set forth in the SPCC Plan. CSC will inform the fire district of the size and location of fuel storage on site. Per Colorado Department of Labor and Employment, Division of Oil and Public Safety (OPS), Storage Tank Requirements, Article 3 (Aboveground Storage Tanks), Section 3-1 (AST Program Scope and Applicability), (b)(15), aboveground storage tanks (ASTs) used to store flammable and combustible liquids at mining operations are excluded from the OPS AST requirements, including tank registration. (6) If there will be washing of vehicles or equipment on site, indicate how the wash water will be contained. As limited by the construction stormwater permit, only water will be used to wash equipment: the use of any other fluid is not permitted to wash equipment. Washing will take place at the concrete pad at the wet plant. (7) If there will be floor drains, indicate how the fluids will be contained. The water treatment building will have floor drains, which will drain into a sump and be pumped back to the thickener unit. (8) Indicate if there will be any air emissions (e.g., painting, oil storage, etc.). Air emission sources from the Kersey Mine are as follows: • Fugitive Dust from sand mining activities and haul roads • Primary Screens (2) for wet material • Rescreening (6) for wet material • Dry Plant Screens (4) — completely enclosed • Dryers (3) — baghouse for PM control • Silos (6) — bin vent for PM control (9) Provide a design and operations plan if applicable (e.g., composting, landfills, etc.). Please see Exhibit D-1: Mining Plan in the approved DRMS application (Exhibit 38). Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 25 Page 3 (10) Provide a nuisance management plan if applicable (e.g., dairies, feedlots, etc.) Please see Exhibit 32: Nuisance Abatement Plan. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 25 Page 4 EXHIBIT 25-1 SAFETY DATA SHEETS Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 33 Page 1 EXHIBIT 33 MINING QUESTIONNAIRE Answer the questions per Section 23-4-260 of the Weld County Code. Please type on a separate sheet. If a question does not pertain to your proposal, please respond with an explanation — do not leave questions blank. Ouestions included in the USR Procedural Guide are attached. (I) Describe any active mining permits that the applicant holds within Weld County. The applicant, Colorado Sand Company II, LLC, currently holds one other active mining permit within Weld County: Keenesburg No. 2 Mine 112c Permit No. M-2019-058 issued by the Colorado Division of Reclamation, Mining, and Safety and Use by Special Review (Milling Operation) Permit No. PRE19-0204. (2) Describe the types, numbers, and purpose of structures (offices, warehouses, scales, mechanical, trailers, silos, fuel stations, maintenance buildings, etc.) that will be built on -site and any operation and processing equipment and vehicles to be utilized, including overhead and below -surface conveyors and whether temporary or permanent. Structure Footprint Description; Equipment Processing Permanent or Temporary Wet Sand Storage and Decant 180' x 610' Storage decant; conveyor of produced wet Overhead tripper sand and Permanent Building (2) Dry Sand Storage Building (2) 440' x 440' Storage and reclaim of dry sand Permanent product; Overhead conveyor, reclaim tunnel/conveyor tripper Wet Plant Enclosure (2) 170' x 170' Wet plant processing; Scalping Permanent screens, attrition screens, dewatering cyclones, sumps, conveyors cells, sizing screens, pumps, and Water Treatment Building (2) 65' x 130' Water treatment; Chemical make Permanent down system, storage and mixing tanks, chemical storage, belt presses Dry Screen Installation (2) 40' x 240' Enclose dry screens; Dry screens Permanent Maintenance Equipment Parts/ Mobile Shop 150' x 150' Storage of maintenance/plant parts; Service and repair of mobile equipment; None Permanent Electrical House/Air 30' x 75' Housing air compressors and air Permanent Compressor Buildings (2) dryers; Plant electrical controls and breakers, switch gear; soft starts, Switch gear, VFD's Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 33 Page 2 Structure Description; Processing Equipment Permanent or Temporary Footprint Scale House 30' x 75' Housing of scale equipment scale operators; Computer equipment and Permanent Mine Office/ Supervisor 30' x 75' Office equipment building; Computer Permanent Office Employee Break Room 30' x 75' Break room; None Permanent Fuel Station 30' x 75' Central lubricants equipment; location for and fuel grease, used in mobile Permanent Onsite System Wastewater (3) Treatment 72' x 15' Central location lubricants equipment; used None for grease and in mobile Permanent Surge Silo (2) 420' x 420' Storage decant; conveyor of produced Overhead wet tripper sand and Permanent Feed Hoppers and Ramps (4) 70' x 25' Location Plant. to feed product to Dry° Permanent Dryer Units (4) 75' x 25' Housing of drying equipment. Permanent Bag Houses (4) 70' x 15' Housing of Bagging equipment Permanent (3) Describe the number of shifts and/or rotations to be worked and the average and maximum number of employees. The hours of operation for in -pit mining, sand processing, storage, and sales will be 24 hours per day, seven days a week. There will be two 12 -hour shifts: 6/7 am to 6/7 pm and 6/7 pm to 6/7 am. Total number of full-time employees will be 98, split into four crews (two crews per 12 -hour shift). Part -tune employees, or more likely contractors, will conduct reclamation work from spring thaw through fall planting season. In -pit mining, storage, and sales activities will be conducted up to 24 hours per day, seven days per week. CSC requests that the Weld County Board of County Commissioners allow the Kersey Mine to extend the hours of operation beyond daylight hours, as the design and success of this facility is dependent on continuous plant operation. Please see question #10 for more detail. (=l) Describe any groups of persons who may access the site on a typical, expected basis including visitors, deliveries, etc. During operations, 98 employees will access the site each day. Approximately seven delivery drivers per day (UPS, FedEx, Freight Deliveries, Fuel Deliveries, etc.) and 457 customer truck drivers per day will access the site during operations. In total, trucks hauling sand from the site and other vehicles are expected to access the site approximately 562 times per day. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 33 Page 3 (S) Explain if the operation will involve a wet or dry pit and/or a slurry wall. The operation will involve a dry pit. Sand will be mined from an open -cut pit by hydraulic excavator, scraper, and/or front-end loader, and then loaded to articulated haul trucks. (6) Describe the size of the area (by acreage and depth) to be worked at any one time. CSC estimates reining one mine block each year, averaging approximately 95 acres per mine block. Under steady- state conditions (i.e., starting in Year 2), concurrent reclamation will commence by stripping viable growth medium in front of the advancing pit and then placing the stripped material in the preceding year's mined -out area for reclamation. The typical in -pit, active mining face area will be 20 to 30 acres in areal extent. (7) Describe the estimated timeframe that will be required for the various stages of the operation including site preparation, site construction, pit and stockpile development, mining, and reclamation. • Phase 1 — Pre -Production Site Development: Phase 1 will commence within 3 months after all required permits and authorizations are acquired. Phase 1 is anticipated to last ten to twelve months and will consist of construction of the plant site and ancillary facilities and initial pit development. • Phase 2 — Production: Phase 2 will commence upon completion of Phase 1 and is estimated to extend 20 years (subject to extension into the Temporary Mining Deferral Zones [TMDZ's] if additional reserves are identified) . • Phase 3 — Closure and Reclamation: Phase 3 will commence upon completion of Phase 2. Concurrent reclamation will be carried out during Phase 2 therefore, the Phase 3 activities will be largely limited to final site close-out requirements. Terminal pit reclamation, plant facilities decommissioning and dismantlement, and site recontouring/revegetation in areas surrounding the plant facilities location will likely be required as conditions of the DRMS 112 permit. (8) Describe the type of material and the depth and thickness of the mineral deposit to be mined and the thickness of growth medium and/or overburden to be removed and stockpiled. The thickness of the sand deposit to be mined is variable but can extend to depths ranging from 10 ft to 40 ft. below ground surface. Due to the nature of the deposit, no "overburden" is present, therefore, no "overburden" is anticipated to be encountered or removed. There is, however, an approximately 12 -inch horizon of "growth medium" that will be recovered before mining and subsequently utilized in reclamation. (9) Describe the proposed use of reclaimed lands and an explanation of the reclamation process, including if any water storage is proposed post -reclamation. The pre -seising use of the Permit Area is mixed -use rangeland and industrial activity (e.g., oil and gas production), and CSC aims to restore the land back to that of mixed -use rangeland, and to the extent such activity remains at the time of nine closure and reclamation, continued oil and gas production after mining activities cease. Given that the proposed Permit Area is on land privately -owned by Wells Ranch LLLP, CSC has designed the Reclamation Plan in close consultation and with explicit agreement of Wells Ranch. To restore the Permit Area to rangeland, CSC will carry out "concurrent reclamation" throughout the life -of -seine, wherein salvageable growth medium will be pre -stripped ahead of reining and then replaced atop a previously reined area. Reclaimed areas will be seeded on an annual basis. In addition, "advance" reclamation will also be carried out Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 33 Page 4 (as described in Exhibit D: Mining Plan of the DRMS Application in Exhibit 38) to minimize outstanding reclamation obligations at the end of life -of -mine. Areas of prior mining disturbance will be at varying stages of revegetation growth, but all areas will be maintained and monitored for reclamation success for five years after mining has ceased. Upon cessation of mining activities, the terminal pit will be reclaimed, and all structures and other appurtenant facilities will be demolished and/or removed from the site. The respective affected areas will be reclaimed in a manner consistent with Exhibit E: Reclamation Plan of the DRMS Application in Exhibit 38. The Kersey Mine reclamation plan was formulated in conjunction with CSC's development of the overall mine plan due to the "concurrent" nature of the reclamation plan. Technical assistance was provided by James M. Beck, PE, QP of J. M. Beck & Associates Mining Consultants of Denver, Colorado. Mr. Beck has over forty (40) years of experience in nine permitting and reclamation plan development for mining operations within the State of Colorado. (10) Explain and justify any request to operate beyond the standard Mining Operations Policies per Section 23-1- 290.A and/or B of the Weld County Code. Such tvaivers may be considered and approved by the Board of County Commissioners. CSC requests that the Weld County Board of County Commissioners extend the hours of operation of the in -pit mining, storage, sales, and processing plant facility beyond daylight hours to 24/7 operations. Section 23-4-290.B of the Weld County Code, amended by Ordinance 2019-18, allows the Board of County Commissioners to authorize additional hours of operation for sand and gravel operations when the Board of County Commissioners deems appropriate. The design and success of this facility is dependent on continuous plant operation. (11) List any County, Municipal or CDOT roads and bridges to be utilized along with site entrance/exit points. The Kersey Mine ingress and egress points will be located on the privately controlled section of Weld County Road 64; thus, all high -density mine -related traffic activity will be concentrated in a non-public use area. Upon leaving the privately controlled segment of Weld County Road 64, mine -related hauling vehicles will travel west along Weld County Road 68, a public -use road, to Weld County Road 67, another public -use road. Mine -related hauling vehicles will then head north on Weld County Road 67 until reaching Colorado Highway 392. All trucks and employee vehicles will be subject to U.S. Department of Transportation and State of Colorado safety requirements. All traffic on Weld County roads will be subject to local speed control functions and other requirements that ensure the overall safety of the public. Direct mining activities will be carried out internally, past a gated access at a location subject to Mine Safety and Health Administration oversight, thus there will be limited and controlled access into and through the active mining area(s). Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 3 Page 1 EXHIBIT 3 LEASE Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 3 Page 2 EXHIBIT 3-1 LANDLORD'S CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: LANDLORD'S CONSENT TO ASSIGNWNT AND ASSUMPTIONOF 14,4 THIS LANDLORD'S CONSENT To ASSIGNMENT AND ASSUMPTION of LEASE (this "Consent") is effective as of the 3oth day of April, 2024. 'WHEREAS, Wells Ranch LLLP ("Landlord") and Colorado Sand Company, LLC ("Tenant") are parties to that certain Sand Mining Lease dated September 2?}11,, 2023 {the "Lease"); and WHEREAS, Tenant desires to assign its interest in the Lease to Colorado Sand Company II, LLC ("Assignee"); EREAS, Section 8.1 of the Luse provides Tenant the right to assign its interest upon Landlord's written approval, which shall not be unreasonably withheld, conditioned or delayed. IN CONSIDERATION of this Consent, the Tenant transfer's all of the Tenant's rights and obligations tinder the Lease, and the Assignee agrees to assume the Lease and all of the obligations of Tenant cinder the Lease, the parties agree to keep, perform and fulfill the promises, conditions and agreements below= 1_ Landlord consents to the Assignment and the transactions contemplated by that Assignment. . Tenant and Assignee shall eater into an Assignment and Assumption of Sand Mining Lease in the form of an Assignment and Assumption of Sand Mining Lease attached hereto as Exhibit A. 3. Tenant shall provide Landlord with a fully executed copy of the Assignment and Assumption of Sand Mining Lease promptly after execution. 4. Tenant small remain liable and is not released from its obligations under the Sand Mining Lease. Assignee acknowledges that it has agreed or will agree to assume all of the applicable obligations and responsibilities of the Tenant under the Lease starting from the effective date of the Assignment and Assumption of Sand Mining Lease until the end of the Terrn of the Lease and such time provided for R.emoval of Property under- Section 6.3 thereof. 6. This Consent will not be valid and binding on the Landlord* Tenant and/or- Assignee until it has been completely executed by all of the parties. 7. This Consent may be executed in any number of counterparts and/or via electronic signature, each of which shall be deemed an original but all of which together will constitute one and the same Consent. a [REMAINDER of PAGE LEFT INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS] SIGNATURE PAGE TO LANDLORD'S CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE IN WITNESS WHEREOF, the parties have executed this Consent as of the date set forth above. LANDLORD: WELLS RANCH, LLLP To sktAx4, 3. Wt11S • TENANT: COLORADO SAND COMPANY, LLC ,appcifficre: By: Name: David G. Patterson Title: Co -President ASSIGNEE: COLORADO SAND COMPANY II, LLC By: Name: David G. Patterson Title: Co -President Exhibit 3 Page 3 EXHIBIT 3-2 MEMORANDUM OF LEASE Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: After recording, return to: Colorado Sand Company 11, LLC cio +halegne O'Brien 221 Bolivar St., suite 400 Jefferson City, IVIO 65101 MEMO RAkNDul1I of LEASE This memorandum of lease dated April 30 , 2024 (the ;`Memo"), by and between Wells Ranch, LLLR (the "Landlord"), and Colorado Sand Company II} LL (the "Tenant"). 1. Lease Agreement. Landlord and Colorado Sand Company, LLC are parties to a lease agreement dated September 27, 2023, as assigned to Tenant pursuantto that certain assignment dated on or around April , 2024 (the "Lease"), in which Landlord leases to Tenant the land legally described on Exhibit A to this Memo (the "Lease Premises") located in Weld County, Colorado. 2. Pfir-p clap§ _firm, The primary term of the Lease is twenty (20) yews beginning on September 27, 2023. 3. Renewal Terms. The Lease provides the parties may mutually agree to extend the term of the Lease by three (3) periods of fire (5) years each., 4. Further Information. Persons requiring additional information concerning the Lease may contact Landlord or Tenant at the following addresses: Landlord: Tenant. Wells Ranch LLLR Attn: Steve VVells 32010 c R 63 Gill, CO 80624 Colorado Sand Company, LLC 2001 Kirby Driver Suite 360 Houston, TX 77019 Termination, Release., and Conflicts. This Memo shall automatically terminate without any further action upon the expiration or earlier termination of the Lease. Tenant acknowledges that Landlord shall have the right and authority to execOte and record a release of this Memo upon the expiration or termination of the Lease. In the event of any conflict between the terms and conditions of this Memo and the terms and conditions of the Lease, the terms and conditions of the Lease shall supersede and control. [The remainder of this page is intentionally blank.] [Signatures and acknowledgements follow on the next page(s).] The parties accept this Memo by their respective signatures below. Landlord: Wells Ranch LLLP SS: 3ficatiL weriis„ Print Name & Title S -g -may Date State of dieTh County oletAtiet Landlord Acknowledgement This emo wa cknotiwled ed before me on `E 2024 b as floe A, c 4ti ) of Wells Ranch LLLP Nota 'Th Public C910 (seal) Tenant: Colorado Sand Company II, LLC By: Dave Patterson, CFO I 3 Nek Ce79)li 2 -Hr Date SS: k 5 County State of croccrs in hisiher capacity MARTI K ROTHROCK NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19954013290 in COMMISSION EXPIRES 08/25.12027 Tenant Acknowledgement This Memo was acknowledged before me on WilcUlittiCAAr`,92024, by Cave Patterson in his capacity of as CFO of Colorado Sand Company Ile LLC (seal) alitasillhellibtamsalbsamalasaamil Sady Cardenas. M 'My Commission Expires 9127/2026 Notary ID133986301 EXHIBIT A LEGAL DESCRIPTION ALL OF ti- :L� v 'iy w 2 i n.3 ♦ ?Y 4# AND 15,„ TM/Wit-11P 5 NORTH., RANGE. E "ri tµ, r:r :: ONE-HALF 0.F THE, sourti :ONE-HAF (Sia THE S1 OF SECTiON. 34, OWNSHiP 6 NOR. 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R CORNER r SAID SEL, . ..:: "metig^ n e^. ~' IntiN• '4N� 0'4S; CW, t DISTANCE C 'ALONG 7c -'E WEST LINE OF THE ORT EST ^"r j}�� ` rte}{{�F{ �{y�` �y }₹ y'c { �{{{�'"T�Ji/. y +��{ @ ��}�Q� 1 stain- n— (/+�� RANGE y � yt.}�� Vii^ a a.• h \. F F J 4 [ � F T ER OF ;„ ik , *4 ai 7.. `w' 1 T •w• , T i.�D Q 9 71 F`k } - t� .i 3 t f 1 • �J U rt` �! F 4 A. kezOKs ' renl ►r At 1-0. BEING THE SOUTHWEST CORNER OF SAID E: SON 34,, T OWNsh ke 6 NORM RANGE 63 WEST: ♦r.- ♦ Jr' !Y w� w 141:3 Jn DISTANCE ` '.' t 'l FEET /� �uxF . THE L E ti QUARMR OF SAD SECTION 34 70 TH. E NORTHWEST CORNER 4r D SECTION 34: nit: -TUC, SOUTH HAI: OE THE SOUTH THENCE DEPARTING SAID WEST LANE OF THE SOUTHWEST QUARTER OF SAID SECT _ ION 3 NST17',34"E., A DISTANCE OF 2,639.04 FEET ALONG IRE NOM LINE OF THE SOUTH' Al THE SOUTH HALF OF THE S1/2) OF SAID SECTION 34 TO THE CEO s E -SOU (C 1 I6m. CORNER °FWD SECTION 34; THENCE N899.7"14"Eg. A DISTANCE OF 2433.9:4 FE.ET A10144,16 I NORTH LINE Of' 1711E so w RALF THE SOUTH HALF 1,12 OF THE la SAID SECTION 34 TO r E NORTHEAST CORNER,: OF THE 50L1T HALF OF iltIz SOLD (51/2 OF THE 1/2) OF SAID sEcn 34 THENCE 5005013441. 4 1315TANCE OF li ,330.01 FEET ALONG THE EAST LINE OF THE SOUTHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SAN 4„ TOWNSHIP 6 orm'+ RANGE 63 WEST* SAID POINT ALSO BE ENG THE NORTHWEST CORNER OF SAID stcnoN 2, TOWNSHIP 5 NORTH, RANGE 63 WEST: THENCE N89e2nr � A D5TANCE OF 2/631,92 FEET ALONG THE NORTH UNE OF THE RTHWES ` QUARTER TO THE NORTH QUAF;TER CORNER OF SAID S-ECTION 2; THENCE N 93 3'114 E, A DISTANCE. OF 2,630.63 FEET ALONG THE NORTH LANE Of THE NORTHEAST QUARTER TO THE NORTHEAST CORNER OF SAID SECTION 2; THENCE SOinrOCI, A DISTANCE. OF 2,641481, FEET ALONG THE EAST LINE OF THE NORTHEAST QUARTER TO THE EAST QUARTER CORNER OF SAID SECIION; THENCE $0171104"E, A ERSTANCE OF 2$55.08 FEET ALONG S'H'E, EAST LINE OF THE SOUTHEAST QUARTLA TO THE SOUTHEAST CORNER OF SAID SECTION 2; THENCE Ser4112rEt A DISTANCE OF L534.57 FEET ALONG THE EAST LANE OF THE NORTHEAST QUARTER TO THE EAST QUARTER ORNER OF SAID SECTION 11 THENCE *41'2 `x , A DISTANCE OF 4684.57 FEET ALONG THE;EAST LINE OF THE SOUTHEAST QUARTER TO Ti4E SOUTHEASTCORNER F SAID SECTION .114 �s .i THENCE. SO0'2 '20w , A DISTANCE OF 2674.74 FEET ALONG THE. EAST LINE OF THE NORTHEAST QUARTER TO THE EAST CRIARITA CORNER SAID SECTION 14; THENCE $00'24'04"E, A DISTANCE OF 2,675 AlFEET ALONG EAST LINE OF THE SIDWHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SECI1ON 14; THENCE S 9453'22"W,, A DISTANCE OF 24559,09 FEET ALONG'THE SOUTH LINE OF THE SOUTHEAST QUARTER E TO ME SOUTH QUARTER CORNER OF SAID SECTION 14; THENCE $891611 nW, A DISTANCE OF 2,558.71 FEET ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER70 THE SOUTHWEST CORNER OF SAID SECTION 14: THENCE 43'44'2 W, A DISTANCE F 24561.33 FEET ALONG THE sow LINE OF THE SOUTHEASTA OUARTER TO THE SOUTH QUARTER CORNIER OF SAID SECTION 15.: THENCE 589' 53 nAkc ; STAN E: �x eti6 HR rid 1 � 11 ,:: QUARTER TO THE POINT OF BEGINNING, FEET ALONG THE Sarni N EOf THE SOUTHWEST SAID DESCRIBED PERiktia PARCEL OF LAND CO CANS 3,99736.k. RES, MORE . C' T LESS hi),. AND SUBJECT .;r-: r+ ANY T i Z` "."' d'�. r .� "� �" :!�. 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T CORNER MOW MELNAMN S CWBED ON THE LAND SURVEY PLAT DATED 2024 F IN THE WELD courme cou AND REMZERS OFRCE U.NDLR RECEPTAiN NUMBER 9 341, Exhibit 3 Page 4 EXHIBIT 3-3 SAND MINING LEASE Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: SAND MINING LEASE T h i S NA I N I NG LEASE CAgraarnant") is hereby made and entered into as of the nthday of ‘DeptF"rnbrr 20:23 Atha "Effective Date") by and betweeni, Wells Ranch, LISP4 hereinafter Galileo' Landlord', and Colorado Sand Company, LLC hereinafter called "Tenant*, Accordingly, Landlord Arid Tenant covenant nt and mutually ally promise as set forth below. In consideration of the mutual promises ises and covenantsg set: forth herein and other good and valuable consideration, including, but not limited to payment of rAdvance Payment") to be paid by Tenant to Landlord within five (5) business days of t n e full execution of this Lease, the receipt and sufficiency of which are hereby acknowledged, Tenant anti Landlord (sometimes relented to hereinafter as a 'Party' ' or collectively as the 'Parties") agree as follows I. Grant of Lease 1 al Definitions. a) Property means La,n clio rd" s entire interest in the propertypropeity described in Exhibit A, attached hereto and made a parthereof, together with all rights as it relates to the I+laterna l., as defined below, .and all surface, access, and other rights, associated with or appurtenant to such Property, including but limited to rights over the roadway shown on Exhibit B, attacted hereto (subject to relocation as mutually agreed to by Landlord and Tenant). During the first year ,of the Lease, Tenant shall obtain ,a survey of the Propeity depicted on Exhibit p and Immediately thereafter the parties shall emend this Lease to update Exhibit A with the survey legal description and also enter into the memorandum of lease referenced in Section 4.40), (b) W.ateriar mean all sand, gravel, aggregate, stone, rock, silt, ola i overburden and all other valuable solid materials, associated therewith fouled on or above the Bedrock. Material, and the rights leased herein, specifically excludes oil, gaand all other hydrocarbons. Notwithstanding the foregoing, "' l ilateria l =. will exclude topsoil that can be used in Tenant's reclamation of the property to allow the growth of native grasses. (o) --Bedrock' means this layers of sandstone, cla ys't and/or shale underlying ate rya I id) Pernnit " .moans all necessary permits, licenses, nights, approvals or authorizations that may be required by all federal, state, city, county or other governmental agencies for the excavation, mining and reclamation of Material from the Property, specifically including but not limited to, (i) any Permit granted by the Colorado Department of Reclamation Mining and Safety ("DRIVIS"), fail) any land use authorization required from Count of Weld (iii) any permits or other authorizations required for the construction of water wells or any othior means of diversion or capture of 'mater on the Property, and (iv) any permits required for the construction of buildings,. (e) Ref lamatiornm shall mean those actions required by the Permits and other applicable regulations pertaining to the grading, contouring and revegetation of the mined land in accordance! with the Reclamation Flan approved by DRMS as pant the mining permit,. and such other r iamat onr actions as may required to concludeTenant's activities in anrcl on ,the Property in compliance with the Permits and Section ,2(b) of this Agreement_ (f) "Environmental Regulations" shall mean any federal, state or local law, statute, code, ordinance, rule, regulation, requirement or guidance related to the environment ,t andior to the impact thereof on human health or safety, which governs, regulates or pertains to the generation, treatnrient, sto►ra e 4 handling, transportation, use or disposal of any hazardous substance that is applicable to Tenant's m In i ng operations. (0) "HazardousSubstance" hall mean: (41) any substance or material defined in or goverrned. �I Mining Lease by any environmental regulation applicable to Tenant's mining and extraction activities one the Property: e () any substance, the presence of which roqu N res investigationt notification, reporting or rem e d i ation under any applicable environmental regulation or under any theory of common law: (a) any dangerous; toxic exiplosive, corrosive, flammable, infectious, radioactive, carcinogenic or mutagenio substance; (4) any substances the presence of which on the Propel would pow a hazard to the environment or to the health and safety of persons on or about the Property: () any su bsta nceo the presence, of which could constitute a trespass; and (6) speioifaoa l ly and without limitations lads polychlorinated biphenyl's, asbestos or asbestos - containing materials., petroleum and petroleum :products under the control of Tenant, its employees and agents. 1..2 Grant of Leaser Landlord hereby grants and lets unto Tenant, its successors and assigns, subject to Section 5.1 bbl oar, a lease unto the surface and subsurface interest of the Property for the exclusive right to mine and extract Material on the terms and conditions set forth in this Agreement. Subject to Tenant's obligation to pay royalties as set 'Forth herein, n, ail Material extracted !rom the Property shall be considered the sole pro pie rt y of Tenant, Landlord will grant .y es s to existing roadway infrastructure to facilitate the construction and operation of the plant such access roadways to be located as depicted on Exhiibit A, If Tenant recovers any precious metals from the Property, the parties win I negotiate in good faith regarding the cost and means to transfer custody of the sauna to Landlord If any substance's defined as minerals under Colorado law, other than those specifically included or specifically excluded dud by Section "1.1(b) are located on the Property, the Parties will negotiate an amendment of this Agreement to address them. Landlord will make reasonable efforts to facilitate Tenant's access to utilities such as natural gas,, electricity and water necessary to power the plant, including, if needed, intiviductions to other lessees on property owned by Landlord or its affiliates, and d to neighboring landowners,, and granting of requisite a sements that may traverse non -leased parts of property owned by Landlord or its affiliates ("Non -Leased Property') causing the least disturbance, or surface damage to such Non -Leased Property. Landlord reserves the right ,to graze cattle on portions of t hei Property not being used by Tenant ("Landlord's Use", but shall not otherwise be entitled to use the Property_ ty To facilitate' Tenant's compliance with Mini Safety and Health Administration regulations, Tenant shall have the right to restrict access to its plant, active mining areas, and associated facilities_ Tenant will fence off the area it is then using to mine; s a,n d w! Fared ectio n") , and Landlord , a -y use all area not within the Fenced Section to graze its cattle, After mining completed in a Fenced action., Tenant will remove the fencing so that cattle nn.ay freely graze in the formerly Fenced Section. and relocate to the next area it intends to mine. This procedure will he repeated over the Tartu such that loathe All be able to g r e all areas of the Property not within the then Fenced Section. Tenant will incur all costs for the fencing. Landlord will be responsible for the safety of its cattle and will 'timely notify Tenant in writing of any areas where fences need to he repaired; provided however_ Tenant shall be liable for damages caused by t h a acts or omissions of Tenant and its employees_ agents, invitees and contractors. 1.3 Term_ The initial tam' of this Agreement shall commence on the Effective Date and expire on the enticthti (208t) a in niversa r y of the Effective Date ("Initial Term"), unless sooner term nated according to the provisions of this Agreement . By mutual agreements the Parties may exterx1 the Initial Term for three periods iods of year each (each, and "Extended Term?) . Each such extension may he agreed upon by the Parties at any time prig` to the day that is ninety () days prig to the 2 idirinting Lease expiration of the Initial Term or the Extended Term then in effect, In the event of such extension(s), a l I of the terms, covenants and conditions of this Agreement shall continue to be in full force and effect during such Extended Term_ The Initial Term and any Extended Term shall be referred to herein as the "Term", 1.4 Grant of Rights. During the term of this Agreement, Landlord grants to Tenant the following rights ("Permitted Us e.): (a) the right of entry; 4 by whatever method is now known or subsequently developed, the exclusive right to survey, explore, prospect, sample, drill, develop, rains (Including without I im itation by surface, open pit, underground, solution or any other method That ter), cross -mine, extract, crush, process, store, stockpile, remove, transport, treat, s.hipp market and sell all Material extracted or removed from the Property (Tenant hereby notifies Landlord that it intends to use flocculent culent and surfactant in its mining methods); 0) the exclusive right to constructs uset, maintain, repair, replace and relocate buildings. plaints. machinery, equipment, roads, pipelines, cleanest inclines, tunnels, stockpiles, reservoirs, power and comm,unication i';ines and any other tructures,„ facilities or improvements of any kind or description on the Property reasonably related to Tenant's ruining activities. (with Tenants U50 of the Property limited to the areas in reasonable proximity to the mining and processing areas then in use, and reasonably necessary haul routes, related to same) (d) to use the Property for the storage or permanent disposal of mineralsr ovarhu r dent topsoil, "lAsaste4 tailings, or other byispiroducts of materials produced from the Property, except that Tenant shall not dispose of any Hazardous Substance on tiia Propfarrty; (e) the no ht to use a l I easements„ rights -of -way and means, of access for ingress and egress across and through the F ropier ty; (f) to extract, process, testa remove and dispose of any Material for testing purposes (including, without limitation, for bulk samples) without payment cf any a nd Royalty or other .add rti c n a i consideration wihatsoever to Landlord, provided that Tenant shall pa's the Boyars on any such, Material removed from the Property for testing purposes for which it receives actual sales revenues; (c1) to use the Property for all of the purposes stated in this Section 1:41 in connection with or in furtheranoe of Tenant's activities on other properties; and chi) to exercise all other rights pertaining to the property that are incidental to or customarily associated with any or allot the rights granted expressly or im pel icitly to Tenant in this Agreement. 3 Minim Leese SIGNATURE SAGE TO PLEASE WELL$ RANCH, LILLY By: Title. CI 4-"Aluitt- 18 COLORADO SAND COMPANY, LLC : I : Go REsidertt Mining Lease EXHIBIT A TO THAT mirlIIreG LEASE PROPERTY DESCRIPTION T5N R63W Section 2' 3, 10, 11, 141 15 TON Re3W Becton South 1/4 3ection 34 Mining use EXHIBIT B ACCESS ROADWAY 4 s It 1 'Amine Exhibit 36 Page 1 EXHIBIT 36 LEGAL RIGHTS TO ENTER AND MINE Provide documentation of the applicant's legal rights to enter and to mine on the land affected by the permit. Documentation of CSC's legal right to enter and mine is provided in Exhibit 3: Lease. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 39 Page 1 EXHIBIT 39 AGREEMENTS Provide Crossing Agreements, Easement Agreements, Setback Agreements, and Structure Agreements, as amended between the applicant and any surface and subsurface interests whose property is located on or adjacent to the subject parcels to be mined. Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Exhibit 39 Page 2 EXHIBIT 39-1 CROSSING AGREEMENT WITH DCP OPERATING COMPANY, LP Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Encroachment and Crossing Agreement THIS ENCROACHMENT & CROSSING AGREEMENT (Agreement) is made, dated and effective as of the 2.1" day of (troBe rt, , 2024 by and between DCP Operating Company, a Limited Partnership ("DCP"), having a mailing address of 6900 East Layton Avenue, Suite 909, Denver, Colorado 8 237 and COLORADO SAND COMPANY II, LLC, a Delaware Limited Liability Company, including its subsidiaries, divisions, parent, and affiliates (COLORADO SAND}, having a mailing address of 2001 Kirby Drive, Suite 360, Houston, Texas 77019, DCP and COLORADO SAND being collectively referred to herein as the Parties W1TNENSSENTH WHEREAS, DCP is the current owner and holder of multiple easement rights granted under certain easement instruments ("DCP Easements") as described on the attached Exhibit "A attached hereto and incorporated herein; and WHEREAS, pursuant to the DCP Easements, DCP has installed, and now maintains and operates three 50' easements as shown on the attached Exhibit "B (collectively, "DCP Facilities") within the DCP Easements; and WHEREAS, COLORADO SAND is the currentowner and holder of leasehold, easement, and license rights granted under certain currently existing agreements permitting certain mining operations ("COLORADO SAND Agreements") affecting property located in weld County, Colorado as shown on the attached Exhibit "B" (the "Mine Area"); and WHEREAS, COLORADO SAND intends to construct, maintain and operate certain roadways in connection with its mining operation within the Mine Area (collectively, "Haul Roads"); and WHEREAS Haul Roads will cross and/or otherwise encroach upon an area 300 feet pride, being 150 feet on either side of the center of the DCP Facilities, as shown on the attached Exhibit "B" (the "Exclusion Zone"); and WHEREAS, COLORADO SAND desires to obtain DCP's consent to construct Haul Roads within the Exclusion zone and to mitigate any potential effects on DCP' s Facilities and in connection therewith, has requested that Owner sign a notarized agreement form that was approved by the Colorado Mined Land Reclamation Board that sets forth that Mine Company will provide compensation for any damage to the Facilities resulting from the proposed mining operation ("Form"); and WHEREAS, DCP desires to grant such consent to COLORADO SAND under the terms and conditions of this Agreement and the Parties have agreed to enter into this Agreement in addition to the mutual execution of the Form. NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows; The recitals to this Agreement are incorporated into and shall constitute a part of this Agreement. Crossing Agreement - Kersey Kline —10/4/2024 DRAFT Page 1 of 8 To the extent DCP has the right to do so, DCP hereby grants consent to COLORADO SAND to install, maintain and operate the Haul Roads under the terms and conditions of this Agreement. COLORADO SAND agrees not conduct any mining operations within the Exclusion Zone. COLORADO SAND shall utilize the use of incremental cover lift placement and other bridging mechanisms to ensure DCP Facilities' integrity is maintained over the duration of active operations in areas affected by the HAUL ROADS, as per typical drawings attached as Exhibit "CT'. COLORADO SAND will provide a complete set of construction plans with exact crossing locations for review and approval prior to construction or installation of the Haul Roads. If changes are later made as a result of the review process by DCP, then final revised plans shall be provided by COLORADO SAND to DCP before final approval is granted by DCP. DCP will review and provide its response within a reasonable time period. COLORADO SAND will not construct any improvements within the Exclusion zone until DCP, in its reasonably based discretion, has approved the COLORADO SAND'S final construction plans, it being mutually agreed that DCP will not be required to approve any construction of improvements that may damage DCP Facilities. COLORADO SAND shall diligently protect DCP Facilities at all times during the performance of any work associated with the Haul Roads. COLORADO SAND will conduct all of its installation, maintenance and operation of the Haul Roads so as not to unreasonably interfere with any of DCP Facilities or the operation and maintenance thereof. COLORADO SAND shall make the appropriate notices to the Colorado One Call Notification Center (811) prior to commencement of any work that may possibly interfere with any of the DCP Facilities. COLORADO SAND shall provide a minimum of forty-eight (4S) hours' notice to DCP prior to any work, including installation, construction, excavation, or demolition on the parcels encumbered by the Haul Roads. Upon such notice by COLORADO SAND, DCP may elect to have a DCP representative, whether one or more ("Representative"), be present during any construction activities within the DCP Easements or the Exclusion Zone. The Representative shall have the authority to stop any work performed by COLORADO SAND and/or any of its contractors, if the work is believed in DCP'S reasonable discretion to be inconsistent with the final plans or noncompliant with this Agreement or considered unsafe. The Representative shall be invited to participate in all COLORADO SAND safety meetings. This provision shall apply each time work is to be performed within the DCP Easements or Exclusion Zone, COLORADO SAND agrees to install the Haul Roads along with any associated temporary construction crossings at or near right angles at the point of intersection with DCP Facilities. The Haul Roads and temporary construction crossings shall be constructed in accordance with, but not limited to, the following provisions of DCP's engineering and construction standards. In addition: 4 No existing cover shall be removed from DCP Easement area or DCP Facilities unless approved by a Representative. Permanent or Temporary vehicle and/or construction equipment crossing" DCP Facilities shall require wheel/track load calculations for superimposed loading due to traffic (DOT Crossing Agreement - Kersey Mine --1 +0/4/2024 DRAFT Page 2 of 8 maximum axle load 20,000 lbs. per axle) to be completed and approved on each vehicle and/or construction equipment crossing DCP Facilities; crossings must have a minimum of thirty-six (36) inches of cover over DCP Facilities and installation of air bridging, matting or other suitable material required to achieve the necessary support for each crossing which shall span a minimum often (10) feet either side of DCP Facilities. • Temporary storage of spoils, material, equipment or vehicles within the DCP Easements must be approved and at no time permitted directly over DCP's Facilities. COLORADO SAND agrees not to alter or change the location of the Haul Roads once constructed without receiving prior written consent from DCP. COLORADO SAND shall maintain and operate the Haul Roads at its sole cost and expense, and COLORADO SAND shall be responsible for repairing any settling due to the Haul Roads within the DCP Easements. DCP shall not be responsible for any costs associated with the operation or maintenance of the Haul Roads. The consent granted herein is limited exclusively to the proposed construction, maintenance and operation of the Haul Roads, as approved by DCP through the process outlined in this Agreement. Except as to the Haul Roads, COLORADO SAND shall not construct, plant or create additional improvements of any kind within the confines of the DCP Easements without the prior express written consent of DCP. COLORADO SAND shall not alter the grade or permit such alteration anywhere on DCP Easements without the prior written consent of DCP. COLORADO SAND acknowledges that DCP's engineering and construction standards are subject to change, and COLORADO SAND agrees that for all future road projects, COLORADO SAND, its affiliates, successor, and assigns, will consult with DCP during the planning process of such future road projects and abide by the engineering and construction standards required by DCP in effect at the time of the construction of such future project(s). COLORADO SAND understands and agrees that DCP may not have the authority to grant COLORADO SAND permission to construct, maintain and operate the Haul Roads within the DCP Easements. This Agreement merely defines the terms by which DCP will not object to the Haul Roads. The consent granted by this Agreement shall not constitute or be construed as a subordination, merger, assignment, conveyance or relinquishment of any of the right, title and interest of DCP under the provisions of the DCP Easements. COLORADO SAND will secure all necessary permits and approvals and comply with all applicable laws, regulations and rules governing the construction, reconstruction, replacement, maintenance and use of the Haul Roads. COLORADO SAND shall release, defend, indemnify and hold harmless DCP, its parents, associated and affiliated companies, its and their agents, employees, officers, directors, insurers, successors and assigns from and against any loss, damage, claim, suit, liability, judgment, and expense (including attorney's fees and the costs of litigation), and any fines, penalties and assessments arising out of injury, death or worse of persons (including that of employees of DCP, COLORADO SAND or their contractors or subcontractors), damage to or loss of any property (including that of COLORADO SAND, DCP or their contractors or subcontractors), caused by, arising out of, or resulting from, either directly or indirectly, the activities of COLORADO SAND or its contractors or subcontractors arising out of or related to Crossing Agreement - Kersey Mine -- 10/4/2024 DRAFT Page 3of8 this Agreement, excepting consequential, special and indirect damages. Provided, COLORADO SAND and DCP each shall bear that portion of liability attributable to such party according to the principles of comparative fault and/or contribution in accordance with Colorado law. Notwithstanding anything herein to the contrary, in no event shall COLORADO SAND, its officers, directors, employees, subsidiaries, agents, representatives, successors or assigns be held liable to DCP for any form of consequential, special or indirect damages. This Agreement in no way constitutes a waiver by DCP of its rights to enjoy the DCP Facilities and/or DCP Easements unencumbered by the construction, operation, maintenance or use of the Haul Roads. COLORADO SAND shall procure and maintain with reputable insurers with AM Best Company's rating of not less than "A -:V11" policies of insurance written on an occurrence basis or on claims made basis (in which event insurance shall be maintained during the term of this Agreement), with limits not less than those indicated for the respective items as follows: 1 Statutory Workers' Compensation and Occupational Disease Insurance, including Employer's Liability Insurance complying with laws of each jurisdiction in which any work is to be performed or elsewhere as may be required. Employer's Liability Insurance shall be provided with a limit not less than: $1,000,000 each occurrence; 2. Commercial Liability Insurance, including but not limited to all Premises and Operations, Contractual Liability, Products -Completed Operations Liability, Fire Legal Liability, Explosion, Collapse and Underground Damage Liability, Broad Form Property Damage Liability, and if applicable, Watercraft and Aircraft Liability, as well as coverage on all Contractor's mobile equipment (other than motor vehicles licensed for highway use) owned, hired or used in the performance of this Contract with limits not less than: $5,000,000 Bodily Injury, Personal Injury & Property Damage combined each occurrence and aggregate; 3. Commercial Automobile Liability Insurance, including Contractual Liability, covering all motor vehicles licensed for highway use and employed in the performance of this Contract, with limits not less than: $5,000,000 Bodily Injury, Personal Injury & Property Damage combined each occurrence and aggregate. Upon execution of this agreement, COLORADO SAND shall furnish DCP a certificate of insurance evidencing the coverage required herein. To the extent allowed by law, COLORADO SAND shall include DCP as an additional insured under the policies required above, but only to the extent of COLORADO SAND's indemnification obligations hereunder. COLORADO SAND will not allow its insurance carrier the right to make a subrogation claim against DCP or any of its affiliates in connection with any of the coverages listed above. Each party to this Agreement acknowledges and agrees that (a) a breach or threatened breach by such party of any of its obligations under this Agreement would give rise to irreparable harm to the other party for which monetary damages would not be an adequate remedy, and (b) if a breach or a threatened breach by such party of any such obligations occurs, the other party hereto will, in addition to any and all other rights and remedies that may be available to such party at law, at equity, or otherwise in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction, without any Crossing Agreement - Kersey Mine —10/4/2024 DRAFT Page 4of8 requirement to (i) post a bond or other security, or (ii) prove actual damages or that monetary damages will not afford an adequate remedy. Each party to this Agreement agrees that such party shall not oppose or otherwise challenge the appropriateness of equitable relief or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this paragraph. Provided however, that each party, shall have thirty (30) days from receipt of written notice to cure any breach except where the breach creates a risk to public safety of damage to DCP's Facilities or the Haul Roads. All notices given or permitted to be given hereunder shall be in writing. Notice is considered given either (i) when delivered in person to the recipient named below, (ii) five (5) days after deposit in the United States mail in a sealed envelope or container, postage and postal charges prepaid, return receipt requested or certified mail, addressed by name and address to the party or person intended, or (iii) twenty-four (24) hours after delivery to a reputable overnight courier service addressed by name and address to the party or person intended as follows: Notice to DCP: DCP Operating Company, LP 6900 East Layton Avenue, Suite 900, Denver, Colorado 80237 ATTN: Lewis D. Hagenlock Notice to COLORADO SAND: Colorado Sand Company II, LLC 2001 Kirby Drive, Suite 360 Houston, Texas 77019 Either party may, by notice given at any time or from time to time, require subsequent notices to be given to another individual person, whether a party or an officer or representative, or to a different address, or both. Notices given before actual receipt or notice of change shall not be invalidated by the change. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the Parties, or otherwise. This Agreement shall run with the land and be binding upon and inure to the benefit of DCP and COLORADO SAND, and their respective successors and assigns, including any successor owners of the DCP Easements, DCP's Facilities, and the Haul roads and any successor holders of such parties' respective rights under the DCP Easements and agreements related to Haul roads, as amended, modified, supplemented, restated and replaced from time to time. If any provision of this Agreement is adjudicated or otherwise found to be against public policy, void, or otherwise unenforceable, then such provision shall be deleted or modified, in keeping with the express intent of the parties hereto, as necessary to render all the remainder of this Agreement, valid and enforceable. All such deletions or modifications shall be the minimum required to affect the foregoing. This Agreement may not be assigned by COLORADO SAND without the prior written consent of DCP, which consent shall not be unreasonably withheld. Notwithstanding the Crossing Agreement - Kersey Mine — 10/4/2024 DRAFT Page 5of8 foregoing, COLORADO SAND shall have the right to collaterally assign this Agreement in connection with any financing or equity transaction without the prior consent of DCP; provided that COLORADO SAND shall remain responsible for any and all obligations under this Agreement until such time as DCP consents to such assignment. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado, excluding the choice of law provisions thereof. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same document. In any instance in which any terms in this Agreement are in contradiction to the terms in the Form referenced in the recital, the terms in the Form will control. [SIGNATURE PAGES FOLLOW] Crossing Agreement - Kersey Mine --10/4/2024 DRAFT Page 6 of 8 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written. COLORADO SAID COMPANY II, LLC 8y: Era-isi is : kat G C o•,,-1/4-titt-tcfl, r et t 6 CFI DCP Operating Company, LP L BSC/LW/Ca At e7/2/04dC, Its: "MigemG7e �r-) Crossing Agreernent - Kersey Dine —10/4/2024 DRAFT Page 7 of 8 ACKNOWLEDGEMENT STATE OF Cet0,--a.ka ) SS COUNTY OF�ics- � Before me, the undersigned authority, a Notary Public in and for said county and state, on this day personally appeared COLORADO SAND COMPANY II, LLC, by ` ,- i tteeiciee , its -� �-- _1, a ; • - , known to me to be the person whose name is subscribed to the foregoing instrument of writing and acknowledgement to me that they executed the same for the purpose and consideration therein expressed. In testimony thereof, 1 have hereunto subscribed my name and affixed my official seal, can the day and year last written above. My Commission Expires: STATE OF CO braCk COUNTY OF UU-e ( I-Nt•-e,k n_ Print Name jlARED,.HAS, NOTAR STATE OF COL 0 NOTARY ID 202440346 MY COMMISSION EXPIRBS +09124'20,28 I Before me, the undersigned authority, a Notary Public in and for said county and state, on this day personally appeared DCP Operating Company, LP, by Lee tio l citeke,,WCits , known to me to be the person whose name is subscribed to the foregoing instrument of writing and acknowledgement to me that they executed the same for the purpose and consideration therein expressed. In testimony thereof, 1 have hereunto subscribed my name and affixed my official seal, on the day and year last written above. My Commission Expires: 3 liv1/4-igpv--3 Crossing Agreement - Kersey Mine —10/4/2024 DRAFT Cjitic\Ak 6Ara eCCLtifC Notary Public avwc ear k-SDA Print Name LORR1 ANN CARLSON Notary Public State of Colorado Notary ID # 20054008501 My Commission Expires 0302-2025 Page 8of8 EXHIBIT "A" DCP Easements © 50' Pipeline Easement (Rec. No. 3200059) o SW 1/41 and SE's of Sec. 2, T5N, R03W (Duke Energy): 50' Pipeline Easement (Rec. No. 3077334) O SW 'A and SE 'A of Sec. 3, T5N, R63W (Duke Energy) a SW of Sec. 2, T5N, R53W (Duke Energy) EXHIBIT 13" MAP OF AFFECTED AREA EXHIBIT "G" TYPICAL CROSSING DRAWING TYPICAL PIPELINE CROSSING 5' OF FROM MATT PIPE TO CL 5' OF FROM MATT PIPE TO CL 5' OF FROM MATT PIPE TO CL 5' OF FROM MATT PIPE TO CL GRADE wen ----was mow —as `.clil Sow- 1' AIR GAP 1' AIR GAP t �=�li. NM.=11�: �I�I�NM�Nf.=.�I�l�� N-rNf � � 3 —4 COVER x`-u�ll= ��— 1 I- 3 —4 COVER — �� ,o -is,--, �s s �,MN= ll�1=NM T — o ',�ri �1� �I ,I,�,F_ LLL t-- . i 1 1 PIPELINE 15' BETWEEN PIPELINE 1 PIPELINES 0 2.5' 5' SCALE : 1" = 5' 4, RC TRC ENVIRONMENTAL CORP. Ism coif Kvo., SUITf.. ISOL rw000, COS0d0I co FIRM Rf.GISTRATION ti1987111716AJ 003,439-5059 CAPWWORKING-TRD\D0753925\TYPICAL CROSSING AGREEMENT.DWG - 2024-09-09 Exhibit 39 Page 3 EXHIBIT 39-2 SETBACK AGREEMENT WITH DCP OPERATING COMPANY, LP Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: 10/15/2024 Colorado Sand Company ll,, tic 2001 Kirby Drive, Suite 360 Houston„ TX 77019 _Attention: Mt. LeWit D. flagenl,ock 6900 East Layton AN/0We Suite 900 Denver; CO. -80237 :. ubjen; frem Qil 8C. gas. -Assets RrppeSedKersey Mine.,nea.r !cpcpy.; cp. Deer Mr. Hagenlock, :The Colorado Sand Company 11,. LLC. eiCStn) is in the process of.permittfneb.,rit. e .purpose of cohstructin and operating a frac sand mine witfran. anticipated-prodOction life of O -proximately 20 -gears between 2025 and 2045 within an anticipated 6;25 contiguous 5ectiops- located approximately S miles East -Northeast of Kersey, Colorado in Section 34,1:6N, :R63 1.($.W and SE quarters) and Sections 2, 3,10,11,14, and 15 of 1-5N, R63W:of the 6th Prune! Meridian, as shown on Exhibit A. It is understood that.DCP Operating Company; LP tuDCP1, and its subsidiaries DCP Midstream LP ("DCP"}„. Duke Energy Field Services LP ("Duke. Energyn. an : Associated Natural Gas Corporation ("Associated NG"), overt and operate several pil add. as - related assets in the vicinity pf_the. inter:06d minin.ao:peratiart The assets--Identified-Et-ofthe date of this letter include: 2D' Pipeline Easements o. Section 10, T5N1 R63W NW1/4 and. SW1/4.=(DCP). D Rec. No. 3594653 :o Section 14, T5N,-R5W SE1/4(DCP) Rec. No, 3537452 :0 Section .15,T5N, R631N Entire Section (PCP) • Rec, Nos.. 3515967 and 35.56401 3.0'-..Pipelinelasements o Section 34, T6R,1R63W SE1 4. (DCP) Rec. N o.:3797974 Section 14,T5N,1R5WS 1 /4(DCP ., Rec. No, 37979..73 .5 '.Pipeline::Easesments- Section 34, T6N, R63W SW1/4 and SE1/4 (Duke Energy) • Rec. Nos. 3077384, and 3260959 Section 2; T5N, R63W NW1./4, SW1,/41 and SEIM. (Duke Energy) ti Rec. Nos. 3260959/ and 3077384 Section 3, T5N, R63W Entire Section (nuke Energy) -Rec. Nos. 3260959; 3077384, 3677377, and 301.6421 Section 1.0, T5N, R63W ,NE1/4 and SEIM (Duke Energy) * :Rec. Nos. 2924436, 31.19402, 3077384, and 2981170 o. Section 11 T5N, R63W N 14 and SWIM (Duke Energy) Rec, Nos. 3148021, 3077383, and 3260959 o ..:Section 15, T5N, R63W NW1/4 (Duke Energy) Rec. No. 3016422 R+ ceiver.Sjte Easements Lo ;Section 34t T6N, R63W SW1/4: and SEV4 (Dtike:-EnergY) It Rec. Nos. 3260959 and 3Q77-377 .6 'Section 2, T5N, R63W SE1/4- (Duke Energy) Rec.. No. 32699.59 :Section .3, T5N, R63W, SE1/4: (Dicke: Eneroy). a Rec. No4 3077384 _y, :Section 10, T5N, R63W SEIM Moke Energy) � Rec: No. 30'77334 Section -1.1, .T5N, R63W SW1/4 (Duke:Enetgla Rec. No. 326095.9 -.section 15, TSVii, R63 WW1/4 (DCP) :m Rec: Nei. 3594663 Th:ese-.assets 'are:within the; permit baundary as de.pl�tect l?yegShib4:E: :CSC and DCP have. discussed the planned rnirt`ogoporationi-a:n partiesareill agre!ement ,as. to to raining plat along these terms thinimUrrl of 50 Beet Will bat kept fronn any octivel . used :Shoring tines OWned:.:anel d pe-rated by DOP for the life of the mining op.er Lion tun.0l 00P neat $Other the _asset is no longer in use. - The sdstin rand, road will be: kept in its curr�en± location for the life. of theimine� - g � C.Stagree nomining 'rill co.mmehcernwithin the' OperAtiori'Corridor; s o: n in Exhibtt 13„.. without -fully expcutect tripatible Development ancl-SurfaceAgre ni nts between .C$C .and OCR: The parties agree -that if there is - Change to- eith.eriatR or 5 ).s plans ith..resped to their -assets or Mining raps -resoctiver on_ the discussed property, thai the parties will info.rm: each other of the change a.nd work in goad. faith to develop a ,plan that: alloys Toth parties.to continue:their rsespecttie b_usinOss operations to their niag rnurn benefit, .i1ereln 'expressecti this Jotter -agreement. in- not the `tferidtd totbitupatible: De.Veloptildr t and S r.ifa e- IJse°.:A,.greorrietit .. w is fltail( b -e f llyexecothd. ata later date. PCP se.peratirit or.tip ..nybo. IR Sipe :LewisD: 1-tagehlOck.a .Attaiiith lti Tact P -r ptp Name-= Olorado Sand Company:I,t4, Signed: RA.b. LC Pcinted Narigte: • A4acjime_titF„ da ibtt. Pt:'opps..ed lull tirtgl,pca#Q: l xh l :ft -13: yep. Qp.otating coliipapyStr.vet..0-:44�d: Proposed Mining Location 104.42872471738852 PROJECT LOCATION Kersey_ an+ _ ..E x hli b it. DCP IVIIda tdairn. Structtites ;abd ..Ea Site.tita Exhibit 39 Page 4 EXHIBIT 39-3 STRUCTURE AGREEMENT WITH DCP OPERATING COMPANY, LP Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Structure Agreement Structure Agreement .................. This letter has been provided to you, D P operating Company, LP, and its subsidiaries, DCP Midstream, LP ("DCP") Duke Energy Field Services LP ("Duke Energy") and Associated Natural Gas corporation ("Associated NG"), as the owner of a structure on or within two hundred (200) feet of a proposed ill ine site. The State ofColorado, Division of Reclamation, Mining and Safety ("Division") requires that where a mining operation will adversely affect the stability of any significant, valuable, andpermanent roan-madestructure locatedwithin two hundred (200)feetof the affected land, the applicant .shall either: A. Provide a notarized agreement between the Applicant and the Person(s) having an interest in the structure, that the Applicant is to provide conwensation for any damage to the structure= or B. Where such an agreement cannot be reached, the Applicantshall provide an appropriate engineering evaluation that demonstrates that such structure shall not be damaged by activities occurring at the mining operation, or C. Where such structure is a utility, the Applicant may supply a notarized letter, on utility letterhead, from the owner(s) of the utility, that the raining and reclamation activities, as proposed, will have Arno negative effect" ontheir utility, (Construction Materials Rule 6.3.12 and Rule 6.4.19 & bard Rock/Metal Miring 6.3.12 and Rule 6.4.20). The Colorado Mined Land Reclamation Board ("Board") has determined that this form{ if properly executed, represents an agreement that complies with the construction Materials Rule 6.3.12(a), Rule ,4.190), and C.R.S. §34-32.5-115 4)(e), and with the Hard Rock/Mining Rule 6.3.12(x), Rule 6.4.20(a)„ and C.R. §34-32-115(4)(d). This form is for the sole purpose of ensuring compliance with the Rules and Regulations and shall not make the Board or Division a necessary party to any private civil lawsuit to enforce the terms of the agreement or create any enforcement obligations in the Board or the Division, The following structures have been located € n, or within, .200 feet of the proposed affected areas: • 20' Pipeline Easements Section TO, T5N, R63R63W NW 114 and / (DCP) Roc. No. 3594663 Section 14, T5N, R5 W I./4PCP *Rec. No. 353745'x. Section 15, T5N, R63W Entire Section (DCP) it Rec. Nos. 3515967 and 3556401 Structure Agreement Pagel of 5 Kersey ll ne_1 1 2 Reclamation Operation • 30' Pipeline Easements o Section 34, ToN, R63W SEIM (DCP) it Rec. No. 3797974 o Section 3, T5N, R63W (DukeEnergy) ' Rec. Nos. 3260959, 3 0773 77, and 3077384 Section 14, T5 R5W SST 1 /4(1) in rec. No. 3797973 • 0' Pipeline Easements o Section 34, T6N, R63W SW1/4 and SEIM (Duke Energy) • Rec., Nos. 3260969, 3077384, and 3260959 o Section 2, T5N, R63W NW1/4, /4, W1/4, and SE1/4 (Duke Energy) Rec. Nos. 3260959, 3260959, and 3077384 aSection 3, T5N, R63W Entire Section(Duke e Energy) Rec. Noy. 3260959, 3077384, 3077377, and 3016421 Section 10, T'', R3 NW1/4 and SE1/4 /4 due Energy) .c. Nos. 2924436, 311 9402, 3 0773 84, and 2981170 o Section 11, T5N,1 3W rl LI- and. W1/4 (DukeEnergy) ■ Rec. 1` o . 3148021, 3077383, and: 3260959 o Section 15, T5N, R63W W1/4 and NE 1T (Duke Energy) Rec. No. 3016422 • Receiver Site Easements o Section 34, T6 ,1 .63 SW1/4 and SEIM e Energy) Rec. Nos. 3260959 and 3077377 o Section 2, T5N, R63W SEIM (Duke Energy) it Rec. No. 3260959 o Section 10, T5N, x.63 W SEIM (Duke Energy) Rec. No. 3077384 a. Section 11, T5N, R63 ' W1. /4 (Duke Energy) • Rec. No. 3260959 o Sermon 15, T5N, R63 ` NW1/4 / MCP) IA Rec. No.3 94663 Structure agreement `age 2 c1 5 Kersey Mine_112 Reclamation Operation ti: CERTIFICATION The Applicant, Colorado Sand Company LLC, by David Patterson,Ca-President, does hereby certify that Noble Energy, Inc, shall be compensated thr any damage from the proposed mining operation to the abovestructure(s) located on, or within, 200 feet of the proposed affected area described within Exhibit A of the Reclamation Permit Application for the Kersey Mine. File Number NI W. ThIS fOffT3 has been approved' by the Colorado helined Land Reclamation Board pursuant to Its authority under the Colorado Lana Reclamation Act kr the Extraction of Construction Materials and the Colorado Mined Land Act for Hard Rock, Aletal„ and Denignated Piiining Operations{ A.ny .alteration of modification to this for shall result in voiding this form [The remainder of this page has intentionally been fell blank) Structure Agreement Page 3 of 5 Kersey Mine,112 Reclamation Operation NOTARY FOR PERMIT APPLICANT AOWLEED BY: Applicant: Colorado sand Company LL. Representative Name: Dave Patterson RepresentativeSignature: Date: STATE OF k'L�G� ) sse COUNTY OF \-I'00.S ) 0/4"y‘tai Title: Co -President The foregoing was acknowledged before me this oadU, ?oe-‘-,erciort as Notary Public c\tde 4-kaay of Perna 1 is_,G01--2iA-4, by My Commission Expires: sady�� Y My Commission Expires 9/27/2026 Notary ID/33986301 Structure Agreement Page. 4 of 5 of Co t ar (Aide) v co\nct Ltz, 0\\�,1 �tiozc� Kersey l i nt:112 Reclamation Operation Notary Public NOTARY FOR STRUCTURE OWNER KNOVVLE ED BY: Structure Owner: l P Aerating Company, LID RepresentativeSignature: ire: Print Representative Name: Lewis D. Hagen lock r Date: . \� � ^ r iY a-efra T YT Attomey-in-Fact STATE OF CO r-a_ol COUNTY OF ILL1 ( ) ss. The foregoing was acknowledged before me this day of Fairmas. Lewis D. Ha _ enlipck as Attorne ,in -Fact of D Orin �mn , .L+ My Commission Expires: LORM ANN C RL ON Notary .Pubhc State of C f.:zlora o Notary ID f 20054008501 C'ommission Exp res03-X2_2 25_ Structure Agreement Page 5 of n? O1- -iZt Kersey Mine 112 Reclamation Operation Exhibit A Proposed Nlining Location Kersey Mine_1 2 Reclamation Operation - . - tiat. Exhibit E R Operating Company, LP Structures and Easements Kersey Mine_112 Reclamation Operation Exhibit 39 Page 5 EXHIBIT 39-4 INDEMNITY AND RELEASE AGREEMENT WITH NOBLE ENERGY, INC. (CHEVRON) Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: SETTLEMENT AGREEMENT AND RELEASE This SETTLEMENT AGREEMENT AND RELEASE ("Agreement") effective as of October 14, 2024 (the "Effective Date") is between Noble Energy, Inca a Delaware corporation ("Chevron"), and Colorado Sand Company II, LLC, a Delaware limited liability company ("Operator"). RECITALS A. WHEREAS, operator possesses a leasehold interest for the lands in weld County, Colorado described in Exhibit A. to this Agreement, said lands referred to herein as the "Property", which property is owned by wells Ranch, LLLP ("Wells Ranch") : B. WHEREAS, Operator intends to develop on the Property a. sand mine facility (the "Facility") as detailed in Exhibit B to this Agreement that will include excavating and material transporting equipment, wet processing equipment, dry processing equipment and loadout facility C. WHEREAS, the Property is located within and adjacent to lands (the "Adjacent Lands.") owned by Wells Ranch where Chevron conducts oil and gas operations in accordance with the Surface Lease between Fells Ranch and Chevron effective as of May 18, 2012, as amended from time to time (the 'Surface Lease"). L WHEREAS, Chevron must maintain its right to access the Property and Adjacent Lands. E. WHEREAS certain installation, construction, and operational activities conducted by operator- in connection with the Facility may impact the on & gas operations planned by Chevron. F WHEREAS, the Parties wish to allocate liability for any future Claims related to the installation, construction, and operation of the Facility and to establish principles of cooperation to mitigate any potential impacts to health, safety, and the environment. NOW THEREFORE, in consideration of the mutual covenants and promises, the Parties agree as follows: TERMS AND CONDITION 1, DEFINITIONS, INTERPRETATION, AND EXHIBITS 1. l Definitions. In this Agreement, these capitalized words or expressions have the following meanings: "Affiliates" means any legal entity that controls, is controlled by, or is under common control with, another legal entity. Any entity is deemed to "controI" another if it owns directly or indirectly at least 50% of the shares or interests entitled to vote. "Claims" means any claim, liability, loss, demand, damage, cost, cause of action of any kind, obligation, requirement, clean-up costs, penalty, fine, interest and award, and whether arising by law, contract, tart (including negligence), voluntary settlement, or in any other manner. "ChevronGroup" means Chevron, Chevron's Affiliates, Chevron invitees, and their respective directors, officers, and employees (and excludes Chevron's contractors and their subcontractors, and their respective directors, officers, and employees). Chevron — Colorado Sand Company —Indemnity and Release Agreement FCC ES .Jaw Settlement Agreement and Release Environmental (July 2020) Execution version l "Environmental Documents" means any technical reports, memoranda, correspondence, and other documents regarding the Work or the environmental conditions at the Property, "Government Entity" means any department, court, tribunal, exchange, authority, commission, board, instrumentality, or agency of any municipal, local, state, federal, or other governmental authority (including regulatory authorities and administrative bodies) and any subdivision of the foregoing or any Person owned or controlled by the government, "Hazardous Material" means any chemical substance, product, waste, or other material which is, or becomes identified, listed, published, regulated, or defined as, or which shows the characteristics of, a hazardous substance, hazardous waste, hazardous material, toxic substance or other regulatory tern, including oil and associated waste or byproducts and components, petroleum hydrocarbons and associated waste or byproducts., and components, produced water, polychlorinated biphenyls, naturally occurring radioactive materials, and asbestos, or which is otherwise regulated or restricted under any applicable law or by any governmental entity, or which may otherwise cause, contribute to, or result in an adverse impact to the environment or an environmental obligation. "Operator Group" means Operator, Operator's Affiliates, Subcontractors, and their respective directors, officers, employees, and. any Person acting on behalf of any of them in connection with any subject matter of this Agreement. "Person" means an individual, corporation, company, association, partnership, state, statutory corporation, government entity, or any other legal entity. "Records" means mean information in any recorded form, including electronic, that relates to this Agreement. "Released Contractor" means a contractor that has entered into an agreement with Chevron (whether- before or after the Effective Date) that includes release, defense and indemnity provisions that are substantially similar to those in Section 5* "Relea.sed Contractor Group" means a Released Contractor and its subcontractor of any filer. "Remediction" or "Remedia.t+e75 means environmental investigation, assessment, monitoring, removal, remediation, corrective action, response action, mitigation, treatment, decontamination, or cleanup. "Subcontractor" means any Person who is engaged by operator or any subcontractor or subsupplier i er of any tier to provide Services (other than an employee of Operator) . "Subsequent Operator" means any person or persons taking title to the Property. 2. PERMITTING AND AGENCY COMMUNICATIONS .1 operations at the Proposed Facility. Operator warrants that the Facility will not substantially deviate from the specifications included in Exhibit B, attached hereto. In the event that Operator intends to modify the design of the Facility in a manner that would be reasonably expected to impact: (i) oil & gas operations conducted by Chevron on the Adjacent Lands; or (ii) the health, safety, and environment of the Property, the Adjacent Chevron - Colorado Sand Company — indemnity and release Agreement FCC ES Law Settlement ,agreement and Release Environmental (July 2020) Execution version 2 Lands, and any personnel of operator Group or Chevron Group, Operator shall provide written notification to Chevron that includes a summary of the planned modifications. Upon Chevron's written notification, Operator shall provide any data reasonably requested by Chevron to evaluate potential impacts of the design modifications to its surface or subsurface oil & gas operations as well as any potential impacts that might affect Chevron's ability to comply with applicable regulations. .2 Permitting. Operator will provide Chevron with copies of any permit applications, environmental assessment reports, technical reports, or other Environmental Documents related to permitting operation or construction of the Facility at least 10 business days prior to submission to a Governmental Entity, operator shall provide a copy of any permits or authorizations issued and obtained for the Facility. Operator will also notify Chevron reasonably in advance of any proposed changes to the Facility that will substantially modify any permits or authorizations obtained for the Facility. 2.3 Air Emissions. Operator recognizes that Chevron has an obligation under federal and state regulations, including Colorado Regulation No. 7, to monitor air quality and the air emissions of its operations and to submit re u 1 ar reports to Governmental Entities regarding air emissions, operator and Chevron shall reasonably cooperate and assist each other in fulfilling, obligations relating to cun-ent and future air emissions requirements, monitoring and reporting under applicable Environmental Laws. 1).4 Notice of Environmental Conditions. (A) If, during the permitting, construction, or operation of the proposed Facility, Operator becornes aware of a condition pertaining to the Property, Adjacent Property or Facility that could be considered a release of Hazardous Materials, a violation of any applicable Law pertaining to health or the environment ("Applicable Environmental Laws"), that could require notice or reporting to a Governmental Entity under Applicable Environmental Laws, or that could give rise to a Claim for property damages, however caused, then Operator shall immediately notify Chevron in writing and promptly provide Chevron a copy or any notice or communication provided by operator to any Governmental Entity regarding said condition. (B) If Chevron becomes aware of a release of Hazardous Materials that originates or emanates from its oil and gas facilities on the Property or the Adjacent Property that could: (i) impact the Facility; (ii) be considered a violation of applicable Environmental Laws that could require notice or reporting to a Governmental Entity under Applicable Environmental Laws} or Oil) give rise to a Claim for property damages, however caused, then Chevron shall immediately notify operator in writing. 2.5 Notice of Potential Violations. (A) Operator shall give prompt written notice to Chevron of; (l.) Any notice, proceeding, or regulatory or enforcement action in connection with a release of Hazardous Materials that may result in Operator conducting Remediation under an applicable Environmental Law; Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution Version 3 (2) Fxceedances of limitations set on air emissions that are enforceable under Environmental Law, including permit or regulatory thresholds, (B) Chevron shall give prompt written notice to operator of: (1 ) Any notice, proceeding, or regulatory enforcement action in connection with a release of Hazardous Materials that may result in Chevron conducting Remediation on the Property. 2.6 Cooperation with Information Requests. Each Party agrees to reasonably cooperate with the other Party and provide, upon the other Party's reasonable request, environmental assessments, audits, investigations, testing, sampling, analysis, or other information related to notices provided under this Section 2. 3. SAFETY AND MAINTENANCE REQUIREMENTS .l Safety Management System.* Prior to the initiation of construction activities associated with the Facility, operator shall provide Chevron with a copy of its safety management system for the Facility that addresses all applicable safety and emergency procedures, including the drug, alcohol, and road vehicle search procedures. .2 Shared Road Use. (A) The Parties currently use or intend to use and maintain access roads, all or portions of which were constructed and/or have been maintained by the Parties and/or their predecessors in interest (the "Road") that allows Chevron to access various oil and gas wells and facilities associated with the Surface Lease. The Parties shall .share the Road as specifically shown on Exhibit C to facilitate installation, construction, and operation of the Facility while Chevron carries out oil and gas operations. (B) The .parties shall equally share all costs and expense necessary to maintain the Road in a condition which, in the Parties' reasonable judgment, will allow safe and convenient passage for, including but not limited to, the vehicles of Operator Group and Chevron Group any ether contractors employed by any member of Chevron Group. Routine maintenance of the Load shall include shared mowing and weed control, snow plowing and grading the surface to provide for proper drainage and pothole and washout repair ("Routine Maintenance"). (C) If a Party causes unusual damages to the Road that cannot be corrected by Routine Maintenance, then the Party causing such damage shall bear the entire cast to reclaim the affected portions of the Road. 3.3 Setbacks. Operator shall not conduct operations within 150 feet from any wells or facilities operated by Chevron. In addition, operator shall not conduct operations within 50 feet of any flowlines or midstream infrastructure operated by any member of Chevron Group. 3.4 Abandoned Wells. In the event that operator wishes to lower the height of an .abandoned wellhead on the Property, it shall provide written notice to +Chevron. Chevron shall complete the requested removal operations within 240 days after receipt of such written Chevron — Colorado Sand Company — indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution version 4 notice. Operator shall reimburse Chevron for all documented costs associated with the removal operations, In the event Chevron is not able to complete such removal within the 240 -day period it shall give written notice to operator. If Operator receives such written notice, or if the work is not completed within said 240 -day period, operator shall have the right (but not the obligation) to perform the removal operation by hiring a third -party contractor reasonably experienced in such work so long as: (i) operator gives Chevron at least thirty (30) days advance written notice that it will be commencing said well removal work; (ii) there is a closed ECMC Fore 27 associated with the wellhead location that includes a "no further action" determination; and (iii) theme is a closed ECMC Form 4 or here operator has assumed all future reclamation closure requirements through an ECMC Form 4. Before commencement of the work by a third -party contractor, Chevron must provide its written consent, which consent shall not be unreasonably withheld, 3.5 Simultaneous Operations. (A) operator shall notify Chevron in the event that it intends to conduct simultaneous operations thatcould be reasonably expected to affect Chevron's existing oil and gas operations around the Property, In no event shall Operator interuptChevron's use of the Road or fracking operations. (B) Chevron shall notify operator in the event that it intends to conduct simultaneous operations that could be reasonably expected to affect: (i) operator's construction or mining operations on the Property; or (ix) Operator's ability to access or use the Road. In no event shall Chevron prevent operator's use of the Road or prohibit operator's ability to transport sand off the Property. (C) operator shall notify Chevron in the event it becomes aware of any conditions or changes in operation that could reasonably be expected to adversely affect Chevron's existing oil and gas operations in or around the Property, including} but not limited to: (i) Chevron's ability to access or use the Road; or (ii) changes or additions to the proposed mining operations. Such notice shall be delivered to Chevron within 12 hours after Operator becomes aware of the conditions or changes in operation that could. impact Chevron's oil and gas operations and shall include a summary of the event or condition, the potential safety concerns, and the estimated time necessary for operator to resume normal operations, (D)Chevron shall notify operator in the event it becomes aware of any conditions or changes in operation that could reasonably be expected to adversely affect operator's construction or mining operations in or around the Property, including, but not limited to Operator's ability to access or use the Road. Such notice shall be delivered to Operator within 12 hours after Chevron becomes aware of the conditions or changes in operation that could impact operator's operations, 4. INDEMNIFICATION 4.1 operator Indemnification, (A) Operator specifically assumes and shall be responsible for the physical and environmental condition of the Property and all environmental obligations related to the operations and activities of the Facility, as well as any wellhead Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution Version 5 abandonment operations it undertakes in accordance with Section 4.1. Operator shall release, indemnify, and defend Chevron Group from and against any Claims arising from the operations and activities of the Facility, including Claims involving any actual, proposed, or threatened use, treatment, storage, holding, existence, disposition, release, generation, production., manufacturing, processing, refilling, control, management, abatement, removal, handling, transfer, or transportation to or from the Adjacent Land or Property of any Hazardous Materials, and other substances, pollutants or contaminants, arising under any Applicable Environmental Laves, regardless of whether existing prior to, as of, or after the Effective rate, or whether the Claim is known or unknown, foreseeable or unforeseeable, except to the extent such Claims are due to the, fault of Chevron. (B) operator shall, and shall cause that all of Operator's future assignees and successors release, indemnify, and defend Chevron from and against any and all Claims related to the environmental condition, operations and activities of the Facility regardless of whether existing prior to, as of, or after the Effective rate, attributable or relating to any period before or after the Effective rate, or whether the Claims is known or unknown, foreseeable or unforeseeable. 4.7 Chevron Indemnification, (A) Chevron .shall release, indemnify and defend Operator from and against any Claims arising from its oil and gas operations that impact the Facility, including Claims involving any actual, proposed, or threatened use, treatment, storage, holding, existence, disposition, release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer, or transportation to or from the Adjacent Land or Property of any Hazardous Materials, and other substances, pollutants or contaminants, arising under any Applicable Environmental Laws, regardless of whether existing prior to, as of, or after the Effective rate, or whether the Claire is known or unknown, foreseeable or unforeseeable, except to the extent to the extent such Claims are due to the fault of Operator. (B) Chevron shall, and shall cause that all of Chevron's future assignees and successors release, indemnify, and defend operator from and against any and all Claims related to the environmental condition, operations and activities of Chevron on the Adjacent Land and Property regardless of whether existing prior to, as of, or after the Effective rate, attributable or relating to any period before or after the Effective Date, or vithether the Claims are known or unknown, foreseeable or unforeseeable. 4.3 Third Party Property If damage is suffered or loss is incurred in relation to property of any Person who is not a member of Chevron Group, Operator Group, or released Contractor Group where that damage or loss arises out of this Agreement, liability for Claims associated with such damage or lass shall be apportioned as at law and the Party, if any, found responsible at law shall indemnify the other Party from such Claims to the full extent of the responsible Party's liability at law,. 4.4 Limitation on Class of Damages. Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Lave Settlement Agreement and Release Environmental (July 2020) Execution version 6 (A) Chevron and Operator mutually waive and release to the fullest extent permitted by applicable law, all of the following Claims for damages arising out of this Agreement, whether such Claims are made in connection with an indernnity, a breach of any obligation under this .Agreement, or any other Claim. (1) Indirect, special, or consequential damage or loss. (2) Loss of profits, loss of production (including production of petroleum or petroleum products), loss of economic advantage or benefit, or loss of business opportunity, in each case whether direct, indirect, prospective, or actual. (3) Punitive or exemplary damages. (B) The limitations provided in Section 4.4(A) only apply to damages or losses suffered by a member of Chevron Group or Operator Group. The limitations provided in Section 4.4(A) do not apply to Claims for damages or losses suffered by third parties. 4.5 When a Party indemnifies any member of +chevron, Group or operator Group against Claims, the indemnifying Panty shall defend, and hold the indemnified Party harmless against those Claims and against all reasonable costs, expenses and fees of any kind (including attorneys' fees) incurred by indemnified Party in defending those Claims, and any tax imposed on the indemnified Party as a consequence of receiving a payment ender this Section 4. 4.6 A Pearson seeking to rely on an indemnity has the right to reasonably object to counsel selected by the indemnifying Party and select alternative counsel at the cost of the indemnifying Party. 5. CHEVRON RELEASE 5,1 RELEASE. In exchange for the consideration that operator is providing under this Agreement, Chevron on behalf of itself and its Affiliates waives any right it holds to submit public comments, appeal, seep judicial or regulatory review, or otherwise interfere with operator's permitting efforts for the Facility. 6. MUTUAL RELEASE AND INDEMNITY BETWEEN OPERATOR AND RELEASED CONTRACTORS 6.I RELEASE, DEFENSE AND INDEMNITY OBLIGATIONS. Operator releases, defends and indemnifies each member- of Released Contractor Group against all Claims in relation to the following: (A) injury, death or disease of any employee or personnel of a member- of Operator Group where the injury, death or disease arises out of this Agreement or the Released Contractor's contract. (B) Damage to or loss of operatorGroup's Property, where the damage or loss arises out of this Agreement or the Released Contractor's contract. Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (.duly 2020) Execution 'version 7 .2 operator shall include a provision substantially similar to this Section 6 in its contracts with Subcontractors whereby Subcontractors assume similar release, defense and indemnity obligations in favor of each member of a Released. Contractor Group. 6.3 Chevron incurs no obligation under this Section 6 to operator, any .Released Contractor or any other Person. Operator defends and indemnifies. Chevron from any Claims arising out of this Section 5. 6.4 Chevron shall, upon request, provide operator reasonable assistance and information so that Operator may verify that Chevron's other contractors entering the Property identified in writing by operator are Released Contractors as defined in Section 6.1. Operator has the right to exclude from the Property the personnel and/or real property{ of any of Chevron's other contractors that cannot be confirmed to be members of a Released Contractor Group or have not executed a separate mutual hold harmless agreement ("MHHA' ) with Operator on terms acceptable to Operator. Operator shall not unreasonably exclude any of Chevron's other contractors, and if requested, shall specify the reason for any exclusion in writing. Notwithstanding the foregoing, Chevron shall have the right to require operator to allow the personnel and/or real property of a contractor- that is not a Released Contractor or member of a Released Contractor Group or has not signed a MHHA. access to the Property by notifying Operator in writing that Chevron agrees that such other contractor will be deemed to be a member of Chevron Group for purposes of Section 5.2 of this Agreement. Chevron incurs no other obligation under this Section 5 to operator, any Released Contractor or any other Person, Operator indemnifies Chevron against any Claims arising out of this Section 5, except where such other contractor has been deemed a member of Chevron Group, in which case the provisions of Section 5.2 shall apply. 7. INSURANCE 7.1 Insurance Required of Operator. Operator shall maintain the following insurance and all other insurance required by applicable law. Nothing contained under Section 7, nor the actual amounts of insurance maintained by operator or its Subcontractors, shall limit or reduce operator's liability and indemnity obligations under this Agreement. (A) Workers' Compensation and Employer's Liability Insurance as prescribed by applicable laws in the State of Colorado. (B) Commercial General Liability (Bodily Injury and Property Damage) Insurance} including the following supplemental coverages: Contractual Liability to cover the liabilities assumed in this Agreement; Products and Completed Operations; Explosion, Collapse and Underground Hazards; and Sudden and Accidental Pollution. The policy limits must not be less than US$10,000,000 or its currency equivalent per occurrence. (C) Automobile Bodily Injury and Property Damage Liability Insurance extending to all vehicles utilized by operator Group in connection with the installation, construction, and operation of the Facility. The policy limits for this insurance must be the higher of the amount required by applicable laws or US$1,000,000 or its currency equivalent combined single limit per occurrence. Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution version 8 8. GOVERNING LAW AND RESOLUTION OF DISPUTES 8.1 Governing Law. This Agreement is governed by and interpreted in accordance with the law of the State of Colorado, without regard to its choice of law rules, except that the substantive and procedural rules of the Federal Arbitration Act, 9 U.S.C. §§ 1-16 govern Section 8.2 (Resolution of Disputes). 8.2 Resolution of Disputes. The Parties shall exclusively and finally resolve any dispute between them using direct negotiations, mediation, and arbitration as set out in this Section 8.2. If any dispute arises out of this Agreement, either Party may initiate the dispute resolution process by giving notice to the ether Party. If a dispute cannot be resolved by direct negotiation, either Party may initiate mediation by giving notice to the other. Mediation must be attended by a representative from each party with decision -making authority. All mediation fees and costs must be paid equally and each Party shall bear its own attorneys' fees and casts in connection with such mediation. If the Parties fall to resolve the dispute through mediation, or if absent an agreement between the Parties on an alternative, schedule for the mediation, the dispute remains unsolved after 90 days from the date of written notice initiating the dispute resolution process, either Party may initiate binding arbitration. The place of mediation and arbitration must be in the State where the property is located. One arbitrator (or 3 arbitrators if the monetary value of the dispute is more than US ,000,000 or its, currency equivalent, or if there is a dispute whether the monetary value exceeds the US$5,000,000) will conduct the arbitral proceedings in accordance with the then existing Commercial Arbitration rules of the American Arbitration Association ("AAA"). The arbitrator(s) must be appointed as provided in the AAA Commercial Arbitration Rules. The maximum number of witnesses each Party may call to give evidence is 3 witnesses of fact and 1 expert witness. The arbitration award is final and binding, and rust be issued within 90 days from completion of the arbitration hearing. Regardless of which Party prevails, all arbitration fees and casts must be paid equally and each Party shall bear its own attorneys' fees and costs in connection with such arbitration. The Parties waive irrevocably their right to any form of appeal, review, or recourse to any court or other judicial authority under any applicable law to the extent that such waiver may be validly made. Proceedings to (A) preserve property or .seep injunctive relief, or (B) enforce an award under this Section 8.2, may be brought in any court of competent jurisdiction. 9. TERM 91 This Agreement, and the rights and benefits granted and created herein shall be effective as of the Effective Date and shall continue in full force and effect for as long as; 0) Chevron conducts oil & gas operations and completes any reclamation activities required under applicable law on the Adjacent Lands; or (ii) Operator operates the Facility and completes all reclamation and/or remediation activities required under applicable law, whichever occurs later. 10. GENERAL PROVISIONS 10.1 Compliance obligations. (A) Conflict of Interest. No member of Operator 'group will, in connection with this Agreement (1) give to or receive from any director, employee, or agent of Chevron Chevron — Colorado Sand Company] — Indemnity and Release Agreement FCC ES Laver Settlement Agreement and Release Environmental (July 2020) Execution version 9 or its Affiliates, any gift, entertainment, or other benefit of significant cost or value, or any commission, fee, or rebate, and (2) enter into any business arrangement with any director, employee, or agent of Chevron or its affiliates (other than as a representative of Chevron or its Affiliates) without Chevron's prior written consent. (B) Pre -Contract violations, reporting violations, and Termination. Operator represents and warrants that no event has occurred prior to the Effective Late, which if it had occurred after the Effective Date, would be a violation of Section 10.1(A.) (Conflict of Interest). Operator shall immediately notify Chevron of any violation of Sections 10.1(A) or 10.1(B) . Notwithstanding any other contrary provision of this Agreement, Chevron may terminate this Agreement at any time with immediate effect for any violation of Sections 10.1(A) or 10.1.(10. (C) records and. Inspection. Up until 24 months from the end of the calendar year in which this Agreement is executed, (1) Operator shall ensure that all members of Operator Group retain all Records related to this Agreement (or until expiration of the statute of limitations for taxes or import or export charges), and (2) Chevron may inspect at any time all Records to confirm that the requirements of this Agreement are met. 10.2 Taxes. Each Party is responsible for all liabilities or Claims for taxes that any taxing authority 1'i'iay assess or levy against that Party relating to this Agreement. 10.3 Prior Agreements. This Agreement constitutes the entire agreement and understanding between the Parties and supersedes all prior and contemporaneous representations, agreements, understandings, and commitments between the Parties concerning the subject matter of this Agreement. Each of the Parties expressly warrants and represents that no promise or agreement not contained in this agreement has been made to it., and none of the Parties are relying upon any statement or any representation of any Party or any agent of any Party that is not contained in this Agreement. 10.4 Amendments. No amendment to this Agreement is effective unless made in writing and signed by authorized representatives of .all Parties. 10.5 Notices. All notices must be in writing and delivered by mail (postage prepaid), email, or by a recognized courier service to the appropriate Party's address, set out in this Agreement. Email notices must clearly state that it is a notice given under this Agreement. Notice given under Section 6 must be delivered by [nail or by a recognized courier service, not by email. Notices are effective when received by the recipient during the recipient's regular business hours. Each Party may change the contact information for notices by notice to the other Party. 10.6 Counterparts. The exchange of counterpart signature pages between the Parties constitutes execution and delivery of this Agreement and it will not be necessary that the signatures of all Parties be contained on any one counterpart. No Party will be bound to this Agreement unless and until all Parties have executed a counterpart. Executed signature pages sent by facsimile, email scan, or otherwise by photocopy are valid means of delivery. Chevron — Colorado Sand Company -- Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution version 10 10.7 Severability and Savings. If any provision (or part of a provision, as applicable) of this Agreement is determined to be invalid or unenforceable by a court or arbitrator of competent jurisdiction, the invalidity or unenforceability will not affect the other provisions of this Agreement, and all provisions not affected by such invalidity or unenfo•ceability will remain in full force and effect. The offending provision (or part of the provision, as applicable) will be modified to be valid and enforceable while achieving to the greatest possible extent, the economic, legal, and commercial objectives of the invalid or unenforceable provision. 10.8 Fiduciary Relationship. The Parties acknowledge and agree that Chevron will not for any reason be considered to have a fiduciary relationship with Operator. 10.9 Binding Effect. This Agreement will be binding on and inure for the benefit of the rightful successors and permitted assigns of the Parties. 10.10 Assignment and Transfer. (A) By Operator. Operator shall promptly notify Chevron of any transfer of its interest in the Property and shall provide a copy of this Agreement to any and all transferees. (B) By Chevron* Chevron may, at any time, assign or transfer all or part of its rights or obligations under this Agreement to any person without Operator's consent. 1+x.11 Third Party Beneficiaries. Except as otherwise expressly stated, any person who is not a Party to this Agreement does not have any rights under this Agreement nor may such person enforce any provision in this Agreement. I 0.12 Construction. Each Party has participated in the preparation of this Agreement and has had the opportunity to consult with legal counsel and any other advisors of its choice to its satisfaction regarding the terms and provisions of this Agreement. Each Party bears its own casts incurred to prepare this Agreement. As a result, the rule of construction that an agreement be construed .against the drafter will not be asserted or applied to this Agreement. 10.13 Confidentiality, The terms and conditions of this Agreement are confidential and may not be disclosed by any Party (or by their attorneys or by others acting through, under or in concert with such Party) to any other person or entity without the express written consent of the other Party except for disclosures (A) to each Party's respective officers, directors, managers., members, employees and those of its Affiliates; (B) to any attorneys, accountants, insurers and auditors of each Party; (C) to Subsequent Operators and prospective purchasers in accordance with Section 10.10; (D) as is required by court order; (E) as reasonably necessary to enforce or interpret thisAgreement; or (F) as otherwise required by law The remainder of the page intentionally left blank. Chevron — Colorado Sand Company — Indemnity and Release Agreernent FCC Es Law Settlement Agreement and Release Environmental (Jule 2020) Execution version 11 IMPORTANT NOTICE: THIS AGREEMENT CONTAINS PROVISIONS REGARDING INDEMNITIES AND WARRANTIES THAT EXPRESS THE AGREEMENT OF THE PANTIES CONCERNING CLAIMS ARISING OUT OF THIS AGREEMENT. The Parties have executed this Agreement as evidenced by the following signatures of authorized representatives of the Parties: CHEVRON: NOBLE ENERGY, INC, Signature: Name: Zach Shearon Title: Attorney -In -Fast Date: )O " Z3-- 70 Z �{ AGREEMENT NOTICES Brian DeRose Attention: Surface Land Manager Entail: brian.derose@chevron.com Address: Noble Energy, Inc. 1099 18th Street, Suite 1500 Denver, CO 80202 OPERATOR.: COLORADO SAND COMPANY Signature: Name: David. Patterson Title: Co -President Date: �w�■ww� IBS" A III AGREE1v'itt,i V 1 1 ii 114x. ia �y Brady"Reece Attention: Chief Commercial Officer Email: Address: Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution Version breeee@capitalsand.com Colorado Sand Company 11, LLC 2001 Kirby Drive Suite 360 Houston, TX 77019 l? EXHIBIT A - LEGAL DESCRIPTION Chevron — Colorado Sand Company --Indemnity and release Agreement FCC ES Law Settlement Agreernent and Release Environmental (July 2020) Execution "Versi on 13 ALL OF SECTIONS 2, 3, 10, 11, 14, AND 15, TOWNSHIP 5 NORTH, RANGE 63 WEST AND THE SOUTH ONE-HALF OF THE SOUTH ONE-HALF (S1/2 OF THE S1/2) OF SECTION 34, TOWNSHIP 6 NORTH, RANGE 63 WEST OF THE 6TH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BASIS OF BEARINGS: THE WEST LINE OF THE SOUTHWEST ONE -QUARTER OF SAID SECTION 15 AS MONUMENTED AT THE SOUTHWEST CORNER OF SAID SECTION 15 BY A 3 INCH ALUMINUM CAP ON #6 REBAR STAMED "LS 4845," FROM WHICH THE WEST QUARTER CORNER OF SAID SECTION 15 AS MONUMENTED BY A 3 INCH ALUMINUM CAP ON #6 REBAR STAMPED "LS 7242, 1990" BEARS N04439'27"'W A DISTANCE OF 2,641.96 FEET, WITH ALL BEARINGS SHOWN HEREON RELATIVE THERETO. BEGINNING AT SAID SOUTHWEST CORNER OF SAID SECTION 15, TOWNSHIP ; NORTH, RANGE 63 WEST AS SHOWN ON THE LAND SURVEY PLAT DATED 2024 FILED IN THE WELD COUNTY CLERK AND RECORDERS OFFICE UNDER RECEPTION NUMBER 4940341; THENCE N04°3'9'27"W, A DISTANCE OF 2,641.96 FEET ALONG SAID WEST LINE OF THE SOUTHWEST QUARTER TO SAID 'VEST QUARTER CORNER OF SECTION 15, THENCE N04`38'1.4°'W, A DISTANCE OF 2,642.40 FEET AMONG THE WEST LINE OF THE NORTHWEST QUARTER TO THE NORTHWEST CORNER OF SAID SECTION 15; THENCE N00'54'11"W„ A DISTANCE OF 2,642.05 FEET ALONG THE WEST LINE OF THE SOUTHWEST QUARTER TO THE WEST QUARTER CORDER OF SAID SECTION 10; THENCE NO0c54'361'W, A DISTANCE OF 2,642.40 FEET ALONG THE WEST LINE OF THE NORTHWEST QUARTER TO THE NORTHWEST CORNER OF SAID SECTION 10; THENCE N00°48'02°"W, A DISTANCE OF 2,6.39.14 FEET ALONG THE WEST LINE OF THE SOUTHWEST QUARTER TO THE WEST QUARTER CORNER OF SAID SECTION 3; THENCE N00c48'34"W, A DISTANCE OF 2,652.06 FEET ALONG THE WEST LINE OF THE NORTHWEST QUARTER TO THE NORTHWEST CORNER OF SAID SECTION 3, TOWNSHIP 5 NORTH, RANGE 63 'VEST; SAID POINT ALSO BEING THE SOUTHWEST CORNER OF SAID SECTION 34, TOWNSHIP 6 NORTH, RANGE 63 WEST; THENCE N01°14'00"4W, A DISTANCE OF 1,323.01 FEET ALONG THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 34 TO THE NORTHWEST CORNER OF THE SOUTH HALF OF THE SOUTH HALF (S1/2 OF THE 51/2) OF SAID SECTION 34; Chevron — Colorado .Sand Company — Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 20 0) Execution Version 14 THENCE DEPARTING SAID WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 34 N89°17'34"E, A DISTANCE OF 2,639.04 FEET ALONG THE NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF (S1/'2 OF THE S1/2) OF SAID SECTION 34 TO THE CENTER -SOUTH (C -S) 1/16-H CORNER OF SAID SECTION 34; THENCE N89°17'141, A'DISTANC.E OF 2,633.94 FEET ALONG SAID NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF (S1/2 OF THE S1/2) OF SAID SECTION 34 TO THE NORTHEAST CORNER OF THE SOUTH HALF OF THE SOUTH HALF (51/2 OF THE SW) OF SAID SECTION 34; THENCE 500'50'34"E, A DISTANCE OF 1,330.01 FEET ALONG THE EAST LINE OF THE SOUTHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SECTION 34, TOWNSHIP 6 NORTH, RANGE 63 WEST; SAID POINT ALSO BEING THE NORTHWEST CORNER OF SAID SECTION 2, TOWNSHIP 5 NORTH, RANGE 63 WEST; THENCE N89°21'07"`E, A DISTANCE OF 2,631.92 FEET ALONG THE NORTH LINE OF THE NORTHWEST QUARTER TO THE NORTH QUARTER CORNER OF SAID SECTION 2; THENCE N89'23'04"E, A DISTANCE OF 2,630.63 FEET ALONG THE NORTH LINE OF THE NORTHEAST QUARTER TO THE NORTHEAST CORNER OF SAID SECTION 2; THENCE SO1°11'04"E, A DISTANCE OF 2,641.81 FEET ALONG THE EAST LINE OF THE NORTHEAST QUARTER TO THE EAST QUARTER CORNER OF SAID SECTION 2; THENCE 501°11'04"E, A DISTANCE OF 2,655.08 FEET ALONG THE EAST LINE OF THE SOUTHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SECTION 2; THENCE SO1°41'2 2"E A DISTANCE OF 2,634.57 FEET ALONG THE EAST LINE OF THE NORTHEAST QUARTER TO � THE EAST QUARTER CORNER OF SAID SECTION 11; THENCE S01°41'22"E, A DISTANCE OF 2,634.57 FEET ALONG THE EAST LINE OF THE SOUTHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SECTION 11 THENCE S00°22'20" E, A DISTANCE OF 2674.74 FEET ALONG THE EAST LINE OF THE NORTHEAST QUARTER TO THE EAST QUARTER CORNER OF SAID SECTION 14; THENCE S00°24'041, A DISTANCE OF 2,675.41 FEET ALONG EAST LINE OF THE SOUTHEAST QUARTER TO THE SOUTHEAST CORNER OF SAID SECTION 14; THENCE 589°53'22"W, A, DISTANCE OF 2,559.09 FEET ALONG THE SOUTH LINE OF THE SOUTHEAST QUARTER TO THE SOUTH QUARTER CORNER OF SAID SECTION 14; THENCE 589'36"11"W, A DISTANCE OF 2,558.71 FEET ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER TO THE SOUTH'W'EST CORNER OF SAID SECTION 14; THENCE 589'44'28"W, A DISTANCE OF 2,561.33 FEET ALONG THE SOUTH LINE OF THE SOUTHEAST QUARTER TO THE SOUTH QUARTER CORNER OF SAID SECTION 15; Chevron — Colorado Sand Company — indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July '.020) Execution Version 15 THENCE 589'45'32"W, A DISTANCE OF 2,561.71 FEET ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER TO THE POINT OF BEGINNING. SAID DESCRIBED PERMIT PARCEL OF LANE) CONTAINS 3,997.56 ACRES, MORE OR LESS (+), AND IS SUBJECT TO .ANY RIGHTS- OF -WAY OR OTHER EASEMENTS OF RECORD OR AS NOW EXISTING ON SAID DESCRIBED PARCEL OF LAND. ALL BEARINGS ARE GRID BEARINGS OF THE COLORADO STATE PLANE COORDINATE SYSTEM, FORTH ZONE, NORTH AMERICAN DATUM 1983/2011. THE LINEAL DIMENSIONS AND AREAS A5 SHOWN HEREIN ARE GROUND DISTANCES AND GROUND AREAS BASEL) ON THE "U.S. SURVEY FOOT." TO GET GRID DISTANCES MULTIPLY SHOWN DISTANCE BY 0.999 '4226. ALL REFERENCES TO ALIQUOT CORNER MONUMENATION IS DESCRIBED ON THE LAND SURVEY PLAT DATED 2024 FILED IN THE WELD COUNTY CLERK AND RECORDERS OFFICE UNDER RECEPTION NUMBER 4940341; Chevron — Colorado Sand. 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E E o / U r1 ej co • _ cep U ce 2 i71 o U U [s., Execution Version EXHIBIT C DESCRIPTION OF ROAD Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Lair Settlement Agreement and Release Environmental (July 2020) Execution Version 27 ACCESS ROAD EASEMENT 1 AN ACCESS ROAD EASEMENT, BEING 25 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE, LOCATED IN SECTIONS 22, 27, AND 34, TOWNSHIP 5 NORTH, RANGE 53 WEST, 5TH PRINCIPAL MERIDIAN, WELD COUNTY, COLORADO, BEING MORE PARTICULARLY [DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 22, AS MONUMENTEO BY A FOUND 3.1/4" ALUMINUM CAP ON NUIVIBER 5 REBAB STAMPED "LS 10855, 1997," WHENCE THE NORTHEAST GORIER OF SAID SECTION 22, AS IVIONUMENTED BY A FOUND 2-1/2" ALUMINUM CAP ON NUMBER 5 REBAR STAMPED "LS 9544, 1995," BEARS NORTH B0°21+58" EAST A DISTANCE OF 5,345.70 FEET, BEING THE BASIS OF BEARINGS IN THIS DESCRIPTION, THENCE ALONG THE FORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 22 NORTH 89°21'58" EAST, A DISTANCE OF 1,352.64 FEET TO THE POINT OF BEGINNING 1 (POB 1), THENCE DEPARTING SAID NORTH LINE OF THE NORTHWEST QUARTER SOUTH 04612'29" WEST, A DISTANCE OF 408.77 FEET; THENCE SOUTH 00°25'01" EAST, A DISTANCE OF 1,112.82 FEET; THENCE SOUTH 01°04'49" EAST, A DISTANCE OF 977.55 FEET; THENCE SOUTH 04°55'15" EAST, A DISTANCE OF 310.38 FEET; THENCE SOUTH 01024'54" EAST, A DISTANCE OF 725.75 FEET; THENCE SOUTH 03°40'51" EAST, A DISTANCE OF 230.00 FEET; THENCE 242.55 FEET ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 268.00 FEET AND A CENTRAL ANGLE OF 51'51'20" (CHORD BEARS SOUTH H 29°35`31" EAST, A DISTANCE OF 234.35 FEET); THENCE SOUTH 55¢3210" EAST, A DISTANCE OF 1,097.50 FEET, THENCE 358.54 FEET ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 370.00 FEET AND A CENTRAL ANGLE OF 55432'10" (CHORD BEARS SOUTH 27445'05" EAST, A DISTANCE OF 344.75 FEET); THENCE SOUTH 0313121" EAST, A DISTANCE OF 1,571.95 FEET; THENCE SOUTH 05'36#03" EAST, A DISTANCE OF 1,103.93 FEET; THENCE SOUTH 0510#45" EAST, A DISTANCE OF 1,104.87 FEET; THENCE SOUTH 07°42'00" EAST, A DISTANCE OF 1,210.07 FEET; THENCE SOUTH 07°45`22" EAST, A DISTANCE OF 535.71 FEET; THENCE SOUTH 05'28124" EAST, A DISTANCE OF 490.35 FEET; PAGE 1 OF 3 Chevron — Colorado Sand Company -- Indemnity and Release Agreement FCC ES Law Settlement Agreement and Release Environmental (July 2020) Execution Version THENCE 233.44 FEET ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 332.O0 FEET AND A CENTRAL ANGLE OF 4O°17'1O" (CHORD BEARS SOUTH 13°40'11" WEST, A DISTANCE OF 228.66 FEET); THENCE SOUTH 33'48'46" WEST, A DISTANCE OF 1,368,81 FEET; THENCE 94.05 FEET ALONG A CURVE TO THE LEFT NAMING A RADIUS OF 135.O0 FEET AND A CENTRAL ANGLE OF 39°54'57" (CHORD BEARS SOUTH 13'5118" WEST, A DISTANCE OF 92.16 FEET); THENCE SOUTH DC°x}5'11" EAST, A DISTANCE OF 115.29 FEET; THENCE SOUTH 1D°5E'56" EAST, A DISTANCE OF 572.33 FEET; THENCE SOUTH 16649'13" EAST, A DISTANCE OF 459.88 FEET; THENCE SOUTH 20'52'1.5" EAST, A DISTANCE OF 352.88 FEET; THENCE SOUTH 40°50'36" WEST, A DISTANCE OF 89.73 FEET; THENCE SOUTH 43'OO'58" WEST, A DISTANCE OF 437,74 FEET; THENCE SOUTH 45'21'39" LEST, A► DISTANCE OF 319.42 FEET TO THE NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF (S1/2, S1/2) OF SAID SECTION 34 AND THE POINT OF TERMINUS 1(ROT 1�, FROI) WHICH THE SOUTH 1/161" CORNER OF SAID SECTIONS 33 AND 34/ AS 1111ONUMENTED BY A 3-1/4" ALUMINUM CAP ON A 30" NUMBER 0 REBAR, BEARS SOUTH 89°1934" WEST, A DISTANCE OF 1,968.42. FEET. SAID EASEMENT CONTAINING 786,275 SQUARE FEET OR 18.05 ACRES, MORE OR LESS, ALSO BUNG 15,725.5 FEET OR 953.1 RODS, GRID DISTANCES ARE BASED OFF U.S. SURVEY FOOT PER COLORADO NORTH STATE PLATE (NAD83) NORTH ZONE, SIDELINES OF SAID EASEMENT TO BE TRIMMED OR EXTENDED TO THE FORTH LINE OF THE SOUTH HALF OF THE .SOUTH HALF (S1/2, 51/2) OF SAID SECTION 34, TOGETHER WITH: Ate_ RA,D EASEi�2 AN ACCESS ROAD EASEMENT, BEING 25 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE, LOCATED 1N SECTION 34, TOWNSHIP 6 NORTH, RANGE 63 WEST, 61." PRINCIPAL MERIDIAN, WELD COUNTY, COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT SAID NORTHEAST CORNED OF SAID SECTION 22; THENCE SOUTH 11°12'34` EAST, A DISTANCE OF 14,22755 FEET TO THE POINT OF BEGINNING 2 (ROB 2); THENCE SOUTH 5O'27"13" EAST, A DISTANCE OF 119.24 FEET, THENCE SOUTH 56'O526" EAST, A DISTANCE OF 163,79 FEET; THENCE SOUTH 01°11'48" EAST, A DISTANCE OF 244.44 FEET; PAGE 2OF3 Chevron — Colorado Sand Company -m Indemnity and Release Agreement, FCC ES L 'EiNV Settlement Agreement and Release Environmental (July 2020) Execution Version 29 THENCE SOUTH 52°16'17" EAST, A DISTANCE OF 185.58 FEET; THENCE 365.36 FEET ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 324,00 FEET AND A CENTRAL ANGLE OF 55°58'22" (CHORD BEARS NORTH 89°44'32" EAST) A DISTANCE OF 351.01 FEET); THENCE NORTH 61°30'29" EAST, A DISTANCE OF 141,08 FEET; THENCE 181.49 FEET ALONG A CURVE TO TI -EE RIGHT HAVING A RADIUS OF 77.00 FEET AND A CENTRAL. ANGLE OF 75°31105" (CHORD BEARS SOUTH 80'43'59" EAST, A DISTANCE OF 94.30 FEET), THENCE SOUTH 42°58'26" EAST, A DISTANCE OF 107.57 FEET, TFIENCE SOUTH 35'18'08" EAST, A DISTANCE OF 226.60 FEET TO THE NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF (sip, sip) OF SAID SECTION 34 AND THE PONT OF TERMINUS 2 (POT 2), FROM WHICH THE SOUTH 1/16TH CORNER QF SAID SECTIONS 34 AND 35r AS IviONU1' NFEED BY A 3-1/4`r ALUMINUM CAP ON A 30" NUMBER 6 REBAR, BEARS NORTH 89°17'14" EAST, A DISTANCE OF 1,332.86 FEET. SAID EASEMENT CONTAINING 82,760 SQUARE FEET OR 1.90 ACRES, MORE OR LESS, ALSO BEING 1655.1 FEET OR 100.3 RODS IN LENGTH, GRID DISTANCES ARE BASED OFF U.S. SURREY FOOT PER COLORADO NORTH STATE PLANE (NAD831 NORTH ZONE. 5iDELINES OF SAID EASEMENT TO BE TRIMMED OR EXTENDED TO THE NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF (51/2, SW) OF SAID SECTION 34. I, BRANDON IVIOSER, COLORADO PROFESSIONAL SURVEYOR IN THE STATE OF COLORADO, DO HEREBY CERTIFY THAT THIS DESCRIPTION AND THE FIELD SURVEY ON THE GROUND UPON WHICH tT wAs BASED WERE PERFORMED BY ivIE OR UNDER IVIY DIRECT SUPERVISION. THIS [DESCRIPTION WAS PREPARED FOR AND BEHALF OF PFS, LLC IBA ASCENT GEOMATICS SOLUTIONS. BRANDON MOSER, PLS 38412 PAGE 3 OF 3 Chevron — Colorado Sand Company — Indemnity and Release Agreement FCC ES Lavv Settlement Agreement and Release Environmental (July 2020) Execution Version 30 Exhibit 39 Page 6 EXHIBIT 39-5 STRUCTURE AGREEMENT WITH WELLS RANCH LLLP Colorado Sand Company II, LLC - Kersey Mine Use By Special Review Permit Application Package Date prepared: October 14, 2024 Date last revised: Structure Agreement This letter has been provided to you, wells Ranch LLP, as the owner of a stock well (Permit Number 319490), stock well (Permit Number 310849), domestic well (Permit Number 3738), a guard station building„ guard station security fence, private roads, interior and perimeter fencing, cattle feeders, troughs, mater tanks and other structures associated with cattle operation on or within tvvo hundred (200) feet of a proposed mine site. The State of Colorado, Division of Reclamation, Mining and Safety ("Division") requires that where a mining operation will adversely affect the stability of any significant, valuable, and permanent man-made structure located within two hundred (200) feet of the affected land, the Applicant shall either: A. Provide a notarized agreement between the Applicant and the Person(s) having an interest in the structure. that the Applicant is to provide compensation for any damage to the structure; or B. Where such an agreement cannot be reached, the Applicant shall provide an appropriate engineering evaluation that demonstrates that such structure shall not be damaged by activities occurring at the raining operation; or C. Where such structure is a utility, the Applicant may supply a notarized letter, on utility letterhead, from the owner(s) of the utility that the raining and reclamation activities, as proposed, will have "no negative effect" on their utility. ('Construction Materials Rule 6.3.12 and Rule 6.4.19 & Hard Rock/Metal Miring Rule 6.3.12 and Rule 6.4.20). The Colorado Mined Land Reclamation Board ("Board") has determined that this form, if properly executed, represents an agreement that complies with the Construction Materials Rule 6.3.12(a), Rule 6.4.19(a), and C.R.S. 34-32.5-115 (4)(e), and with the Hard Rock/Mining Rule 6.3.12(a), Rule 6.4.20(a), and C.R.S §34-32-115(4)(4). This form is for the sole purpose of ensuring compliance with the Rules and Regulations and shall not make the Board or Division a necessary party to any private civil lawsuit to enforce the terms of the agreement or create any enforcement obligations in the Board or the Division. The following structures have been located on, or within, Zoo feet of the proposed affected areas • Stock Well Permit Number 319490, NW1/4 of the NE1/4 of Section 14, T5N, R63W • Stock Well Permit Number 310849, NW1/4 of the NE1/4 of Section 15, T5N, R63W • Domestic Well Permit Number 3738, NW1/4 of the SW1/4 of Section �, T5N, R63W (estimated) • Associated piping, hater tanks, cattle feeders. and other structures associated with cattle operation located throughout the Wells Ranch property. • All interior and perimeter fencing located throughout and along the Permit area. • Guard Shack, including building and security gate located at the northern property entrance. • Private roads from County Road 68, south, to the mine entrance. Structure Agreement Page I of 3 Kersey Mine 112 Reclamation operation CERTIFICATION The Applicant, Colorado Sand Company II, LLC, by David Patterson, Co -President, does hereby certify that Fells Ranch shall be compensated for any damage from the proposed mining operation to the above structure(s) located on, or within, 200 feet of the proposed affected area described within Exhibit A of the Reclamation Permit Application for the Kersey Mine. File Number M i This form ;has been approved by the Colorado Mined Land Reclamation Board pursuant to its authority under the Colorado Land Reclamation Act for the !extraction of Construction Materials and the Colorado Mlined Lard Act for Hard Rock. Metal, and Designated Mining Operations. Any alteration of modification to this form shall result in voiding this form. Structure Agreement Page 2 of 3 Kersey Mine_112 Reclamation Operation Notary Public NOTARY FOR PERMIT APPLICANT ACKNOWLEGED BY: Applicant: Colorado Sand Company II, LLC Representative Dame: Dave Patterson I Representative Signature: � t ` Date: MI VUlt Title: Co -President STATE OF -Tex cyS .) ss. COUNTY OF ce\--0.1(k_______) The foregoing was acknowledged before me this \Stet, clay of L5 -e. oev\psoke Zv2q , by a.L a'Vt(( Pa trarS01^, „ U_ PiAcy,aukit.fof (Of olairho sat,4 caM^I"uhcLLcs My Commission Expires: sally Cardenas My Commission Expires 9/27/2026 Notary to 133986301 °t \ 21 I Zo2(a Structure Agreement Page 3 of 3 Kersey Mine 112 Reclamation operation NOTARY FAR STRUCTURE OVVNER ACKNOWLEGED BY - Structure Owner: Wells Ranch LLLP Representative Signature: ao Print Representative Name: �05� Uj as � �j ,;rte , Representative Signature: Print Representative Name: Date:9-teumLsC) akitt��C� Title: STATE OF Cidt000LCID ss. COUNTY C}F� �P� id } i acknowledged before me thisr) day of(-_ The foregoing was'� e33\luit of _ a�- _ �F y Commission Expires: MARTI K ROTHROCK NOTARY PUBLIC STATE of COLORADO NOTARY ID 1 995401 3290 MY COMMISSION EXPIRES 08/25/2027 as Structure Agreement Page 4 of 3 Kersey Mine.112 Reclamation Operation Exhibit A Proposed Mining Location Kersey Mine 112 Reclamation Operation Exhibit B Wells Ranch Structures within Permit Area Kersey Mine 112 Reclamation Operation Hello