HomeMy WebLinkAbout20232297.tiffRESOLUTION
RE: APPROVE TERMINATION OF ROAD MAINTENANCE IMPROVEMENTS
AGREEMENT FOR 1041 WELD OIL AND GAS LOCATION ASSESSMENT PERMIT,
1041 WOGLAI9-0007 - VERDAD RESOURCES, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, by Final Order dated May 12, 2020, Curt Moore, Hearing Officer for the Weld
County Oil and Gas Energy Department, approved 1041 Weld Oil and Gas Location Assessment
Permit, 1041 WOGLA19-0007, for Verdad Resources, LLC, on the following described real estate,
to -wit:
SW1/4 SW1/4 of Section 20, Township 3 North,
Range 62 West of the 6th P.M., Weld County,
Colorado
WHEREAS, on May 6, 2020, the Board approved a Road Maintenance Improvements
Agreement for 1041 Weld Oil and Gas Location Assessment Permit, 1041 WOGLA19-0007, with
said applicant, with terms and conditions being as stated in said agreement, and
WHEREAS, the Department of Planning Services received a request from the Oil and Gas
Energy Department on behalf of the applicant, Verdad Resources, LLC, requesting that the Board
of County Commissioners consider approving the termination of Road Maintenance
Improvements Agreement approved on May 6, 2020, since a site inspection was performed on
May 23, 2023, which confirmed the 1041 WOGLA19-0007 construction was not started within
three (3) years of approval and the permit expired on April 30, 2023, and
WHEREAS, the Departments of Planning Services, Public Works, Oil and Gas Energy,
and the County Attorney's Office recommend that the Board of County Commissioners consider
approving the termination of the Road Maintenance Improvements Agreement for 1041 Weld Oil
and Gas Location Assessment Permit, 1041 WOGLA19-0007, approved on May 6, 2020,
Reception #4591110, for Verdad Resources, LLC, since the permit has expired and it is no longer
necessary, and
WHEREAS, upon recommendation of staff, the Board deems it advisable to terminate the
Road Maintenance Improvements Agreement for 1041 WOGLA19-0007, approved on May 6,
2020, Reception #4591110, for Verdad Resources, LLC.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Road Maintenance Improvements Agreement for 1041 Weld Oil and
Gas Location Assessment Permit, 1041 WOGLA19-0007, be, and hereby is, terminated.
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Carly Koppes, Clerk and Recorder, Weld County , CO
BO I�Nr41Yrig4iiIVIN II
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OR/a► /23
2023-2297
OG0003
APPROVE TERMINATION OF ROAD MAINTENANCE IMPROVEMENTS AGREEMENT
(1041 WOGLA19-0007) - VERDAD RESOURCES, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 7th day of August, A.D., 2023.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: j;,A,
Weld County Clerk to the Board
BY
eputy Clerk
APPROVED AS TO FORM:
County Attorney
Date of signature: O/ 1O1'a3
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Car1Y Koppes, Clerk and Recorder, Weld County CO
11111
Mi - -eman, Chair
erry L. Bu c , Pro-Tem
tt K. James
Lori Saine
2023-2297
OG0003
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: BOCC Agenda Item - Approve Termination of Road Maintenance Agreement for:
Verdad Resources, LLC — 1041 WOGLA19-0007
DEPARTMENT: Planning Services DATE: July 18, 2023
PERSON REQUESTING: Jazmyn Trujillo -Martinez
Brief description of the problem/issue:
The Department of Planning Services received a request from the Oil and Gas Energy Department on behalf of
Verdad Resources, LLC, requesting that the Board of County Commissioners consider approving the termination
of the Road Maintenance Agreement for (1041 WOGLA19-0007). The Road Maintenance Agreement was
approved on May 6, 2020 and recorded as Reception #4591110 and Tyler #2020-1333. The
1041 WOGLA19-0007 construction was never started within three years of approval thus 1041 WOGLAI9-0007
has expired.
Weld County Planning Services, Public Works, Oil and Gas Energy, and the County Attorney's Office have
reviewed the above mentioned signed original document and observed the following:
• All Public Works related items, of the "Road Maintenance Agreement According To Policy', are found
to be acceptable.
• This Agreement complies with the terms of the 1041WOGLA Permit Final Order, as signed by the
Oil and Gas Energy Hearing Officer.
What options exist for the Board? (include consequences, impacts, costs, etc. of options):
1. Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda.
2. Have this BOCC Hearing item be placed on the next available agenda as part of the Regular Agenda.
Recommendation:
Option 2. The Departments of Planning Services, Public Works, Oil and Gas Energy, and the County Attorney's
Office are recommending approval of the termination of the Road Maintenance Agreement According To Policy
for 1041 WOGLA19-0007, and that this item be placed on the next regularly scheduled BOCC Hearing, as part
of the Regular Agenda.
Approve
Recommendation
Perry L. Buck, Pro-Tem
Mike Freeman, Chair
Scott K. James
Kevin D. Ross
Lori Saine
Schedule
Work Session Other/Comments:
afa3297
aei O0O3
May 25, 2023
Allison Schieber
1125 l7th Street, Suite 550
Denver, CO 80202
Re: 1041 WOGLA 19-0007
Ms. Allison Schieber;
Oil and Gas Energy Department
1402 N. 17t}' Ave.
Greeley, CO 80631
970-400-3580 office
oged@weld.gov
This letter serves as notice that the referenced Weld Oil and Gas Location Assessment Permit
expired on April 30, 2023:
Applicant: Verdad Resources
Record Number: 1041 WOGLA 19-0007
Location Name: Black Mountain 2024-2031
Parcel Number: 121920000005
Approval Date: April 30, 2020
Legal Description: SWSW Section 20, Township 3 North, Range 62 West, 6th P.M., Weld
County, Colorado
A site inspection was performed on May 23, 2023, and it was confirmed that construction had not
begun on this Location.
Pursuant to Sec.23-2-1050., ORD2015-26: Construction pursuant to approval of a WOGLA shall
be commenced, and continual progress made within three (3) years from the date of approval, or
the approval shall terminate. If it is still the intent to pursue this Oil and Gas Location, submittal
of a new 1041 WOGLA Application is required. Pursuant to Sec.21-5-315., ORD2021-17, the
Application process shall begin with a request for a pre -application meeting.
Please contact the Oil and Gas Energy Department should there be any questions or concerns.
Sincerely,
/61
Jason S. Maxey
Director
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Carly Koppel, Clerk and Recorder, Weld County, CO
FINAL ORDER
BEFORE THE WELD COUNTY 1041 WOGLA HEARING OFFICER
Docket Number 1041WOGLA19-0007
1041 WOGLA Hearing Officer Curt Moore heard this matter on April 30, 2020 through a remotely
held audio and video connection led by the Oil & Gas Energy Department Director upon
application for a 1041 WOGLA Permit located in the SWSW of Section 20, Township 3 North,
Range 62 West, 6th P.M., Weld County, Colorado. Present via remote connection for the hearing
were Dwight Mallory, Permit and Enforcement Specialist, Weld County; Elisa Kunkel, Oil & Gas
Energy Technician, Weld County; Jason Maxey, Director, Weld County; Gabe Kalousek, County
Attorney, Weld County; and Jeff Berghorn, Landman, Verdad Resources LLC; Allison Scheiber,
Senior Regulatory Analyst, Verdad Resources LLC; and Mike Cugnetti, EHS Manager, Verdad
Resources LLC. Having heard the testimony presented and considering documents submitted for
review, including the application, the Hearing Officer makes the following Findings of Fact and
Order:
Findings of Fact and Law
The Hearing Officer makes the following findings of fact:
1. Verdad Resources LLC ("Verdad" or "Applicant") as Applicant for the above referenced
Docket delivered its 1041 WOGLA Permit Application ("Application" or "Permit") dated
January 15, 2020 to the Weld County Oil & Gas Energy Director ("Director" or "Staff").
2. Upon review of the Application, Mr. Mallory found the Application to be complete and
forwarded the Application to the Hearing Officer for the purpose of scheduling a hearing
pursuant to the Weld County 1041 Regulations ("WCC" or "Code").
3. At the scheduled Hearing on April 30, 2020 Mr. Mallory gave testimony that the
Application was viewed as complete and further testified that the Application was found
to be in compliance with the Code including the Development Standards within Sec 21-5-
320 E. and Division 4 of Article 5 ("Development Standards") of the Code.
4. Mr. Mallory further testified that certain Conditions of Approval ("COA's") and Best
Management Practices ("BMP's") are outlined within the Staff Report and attached to the
Application. Mr. Mallory concluded his testimony with a recommendation to the Hearing
Officer that the Application should be approved.
5. Mr. Berghorn gave testimony that pipelines for fresh water would be installed and in
service for this site which will significantly reduce the impacts associated with truck
traffic.
6. Mr. Berghorn testified that the Applicant will control dust on the proposed site and
private roads through the application of water as necessary. Mr. Berghorn further
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Carly Koppes, Clerk and Recorder, Weld County, CO
■IIIIniliCl 1, 1F4MINitt'ak tIAiii:14k Bill
testified that the Applicant will apply magnesium chloride on the private road if the
application of fresh water is not adequately suppressing and controlling dust from the
operations.
7. Mr. Berghorn testified that the Applicant's offset well analysis may result in the plugging
and abandonment of one (1) non -operated well which would result in a cumulative
impact reduction in terms of surface area reclamation at the existing well, production
facility and access road to the existing well.
8. Mr. Berghorn testified that, if requested by the building unit owner south of the proposed
site, a sound wall will be constructed on the south side of the Oil and Gas Location to
mitigate any possible noise impacts to the existing building unit during the construction
phase of the project. Mr. Berghorn testified that a quiet frac fleet will be used at this
location which will further reduce the possibility of noise impacts to the building unit
located south of the proposed site.
9. Mr. Berghorn testified that lighting during the drilling and completion phase will be
mitigated by the sound wall installed on the south side of the location if requested and/or
by directing lighting downwards and away from the building unit south of the proposed
site. Mr. Berghorn further testified that there will be no permanent lighting installed at
this location.
10. Mr. Berghorn testified that fencing would be installed around the site to prevent livestock
from entering into the Oil and Gas Location.
11. Mr. Cugnetti testified that a Leak Detection and Repair ("LDAR") program including third
party inspections on a monthly basis along with a daily audio, visual, olfactory ("AVO")
program is planned for this location as part of an overall leak and spill detection program.
Mr. Cugnetti testified that the facility will have impervious lining to protect soil and water
resources from and leaks or spills from the production facility equipment. Mr. Cugnetti
testified that flowlines will have annual testing for integrity. Mr. Cugnetti testified that
automation will be installed at this facility prior to first production which will provide
remote shut-in capabilities for the Wells and Production Facilities at this location. Mr.
Berghorn further testified that the data collected from the AVO and LDAR programs
would be made available to the Weld County Department of Public Health and
Environment if requested.
12. Mr. Berghorn testified that the Applicant will use oil -based drilling fluids at this location.
Mr. Berghorn further testified that, although it is unlikely, if concerns regarding odor are
expressed by the building unit owner south of the proposed site the Applicant will
mitigate with D822 odor suppression additives during the drilling operations.
13. Mr. Cugnetti testified that the equipment installed at this site will have all required air
emission permits required and referenced in the Colorado Department of Public Health
and Environment ("CDPHE") referral comments.
14. Mr. Cugnetti testified that the Applicant has an ozone mitigation program in place to
mitigate ozone impacts on forecasted high ozone days which is in line with the referral
comments received from the CDPHE.
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Carly Koppel, Clerk and Recorder, Weld County, CO
VIII 1�11�1: �IiL��I�Q�I�iJ���'!� ���1�'�'J41�I11�4 a4G� 4 lilti 11 111
15. Mr. Berghorn testified that natural gas would be produced into a pipeline at first
production which will result in no flaring of natural gas at this location which is in line with
the referral comments received from the CDPHE.
16. Mr. Berghorn gave testimony that he has reviewed and agreed to be bound to the
Development Standards within the Code; the COA's and BMP's within the Staff Report;
and the Development Standards and Conditions within the referral agency comments
received from Weld County Public Works and Weld County Department of Public Health
and Environment. Mr. Everhart further testified his understanding that by granting
approval of the Permit that the Applicant would be subject to certain Rescission
Procedures in Sec 21-5-370 of the Code should at any time the Applicant is found to be
out of compliance with the Permit.
17. Upon review of the Application and the Staff Report and upon taking testimony from Mr.
Mallory, Mr. Berghorn, Ms. Scheiber and Mr. Cugnetti the Hearing Officer found the
Application to be complete.
18. Based on the facts stated in the Application, having received no applications for
intervention, and based on the testimony presented to the Hearing Officer at the April
30, 2020 Hearing, the Hearing Officer found that a final order ("Final Order") to approve
the Application should be entered.
FINAL ORDER
NOW, THEREFORE, IT IS ORDERED, that
1. Verdad's 1041 WOGLA Permit heard under Docket Number 1041WOGLA19-0007 and located
in the WWSW of Section 20, Township 3 North, Range 62 West, 6th P.M., Weld County,
Colorado, is hereby approved.
2. Verdad is hereby bound to the Development Standards within the Code; the COA's and BMP's
within the Staff Report; and the Development Standards and Conditions within the referral
agency comments received from Weld County Public Works and Weld County Department of
Public Health and Environment the contents of which can be located at https://accela-
aca.co.weld.co.uskitizenaccessi
3. It is ordered that pipelines for fresh water will be installed for the purpose of delivering fresh
water to this location.
4. It is ordered that the Applicant will control dust on the proposed site and private roads
through the application of water as necessary and further ordered that the Applicant will
apply magnesium chloride on the private road if the application of fresh water is not
adequately suppressing and controlling dust from the operations.
5. It is ordered that, if requested by the building unit owner south of the proposed site, a sound
wall will be constructed on the south side of the Oil and Gas Location to mitigate any possible
noise impacts to the existing building unit during the construction phase of the project.
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Carly Kopp., Clerk and Recorder, Weld County, CO
VIII PPJILI II.V CliPOIMON ILI'1 11/214It Jab II III
6. It is ordered that lighting during the drilling and completion phase will be mitigated by the
sound wall installed on the south side of the location if requested and/or by directing lighting
downwards and away from the building unit south of the proposed site. It is further ordered
that there will be no permanent lighting installed at this location.
7. It is ordered that automation will be installed at this facility which will provide remote shut-
in capabilities for the Wells and Production Facilities at this location.
8. Approval of this 1041 WOGLA Permit creates a Vested Property Right as an approved Site
Specific Development Plan pursuant to Article 68 of Title 24, C.R.5., as amended.
IT IS FURTHER ORDERED, that this Final Order will be recorded in the records of the Weld County
Clerk and Recorder. Additionally, a notice describing generally the type and intensity of USE
approved, the specific parcel or parcels of property affected and stating that a VESTED PROPERTY
RIGHT has been created shall be published once, not more than fourteen (14) days after approval
of the 1041 WOGLA Permit. The Permit shall be effective upon recording and publication.
Weld County Oil & Gas Energy
By:
Curt Moore, Hearing Officer
Dated: Ai (Z i ZOZ.o
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Carly Koppes, Clerk and Recorder, Weld County, CO
VIII PrdIVIZO L Ind: E, ..10.14 RH EX/1b IN
1041 WOGLA Permit
STAFF REPORT
Record Number 1041WOGLA19-0007 Hearing Date: April 30, 2020
Staff Specialist: Dwight Mallory
Company/Applicant: Verdad Resources, LLC
Location Name: Black Mountain 2024-2031 Pad
Legal Description: SW1/4SW1/4, Section 20, Township 3 North, Range 62 West of the 6th
PM
Proposed Use: New Oil and Gas Location with Combined 2 Well Pad and Production
Facility
SUMMARY
The Captioned 1041 WOGLA Application (Application) was submitted by Verdad Resources, LLC (Verdad
or Applicant) pursuant to Section 21-5-320 of the Weld County Code (Code).
The Staff of the Weld County Oil and Gas Energy Department (OGED or Staff) has completed a review of
the Application, and recommends that 1041WOGLA19-0007 be APPROVED as provided below:
1. The Application complies with the requirements of Section 21-5-320 of Code.
2. Verdad has demonstrated compliance with the Development Standards in Chapter 21, Article 5,
Division 4 of the Weld County Code.
3. In the opinion of Staff, Verdad has proposed to develop the Oil and Gas Location in a manner that
is protective of the health, safety and welfare of the residents of Weld County, as well as the
environment and wildlife.
4. Pursuant to Sec. 21-5-330 of the Code, notice of the 1041 WOGLA Hearing was mailed the current
Surface Owner of the parcel where the Oil and Gas Location is sited.
5. There are no Building Units within one thousand (1,000) feet of the Oil and Gas Location.
6. There are no Schools, School Facilities or Child Care Centers within one -thousand three -hundred
twenty (1,320) feet of the proposed Oil and Gas Location. However, RE -2 School District was
provided an opportunity to provide comments with respect to bus routes and traffic related to
the Application. No response was received.
7. There are no Local Governments whose boundaries are within one -thousand three -hundred
twenty (1,320) feet of the proposed Oil and Gas Location.
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Carly Koppers, Clerk and Recorder, Weld County, CO
InAr ��I' 1/41!iki.11141I II
8. Notice of the 1041 WOGLA Hearing was originally published in the Greeley Tribune on February
21, 2020. Notice of the postponed hearing date was published on March 18, 2020.
9. Staff requested comment from referral agencies pursuant to Sec. 21-5-330.A of the Code.
Comments received from referral agencies have been made part of the Application record and
are viewable through the E -Permit Center on the Weld County website. Where appropriate,
Conditions of Approval have been established based on referral agency comments.
a. Responses were received from the following referral agencies:
i. Colorado Oil & Gas Conservation Commission (COGCC): Referral sent 02/12/2020.
Response with comments received on 03/16/2020.
ii. Colorado Department of Public Health and Environment (CDPHE): Referral sent on
02/12/2020. Response with comments received on 02/14/2020.
iii. Colorado Parks and Wildlife (CPW): Referral sent 02/12/2020. Response indicating to
conflict with the proposed Oil and Gas Location received on 02/12/2020.
iv. Weld County Department of Public Health and Environment: Referral sent on
02/12/2020. Response with comments received 03/03/2020.
v. Weld County Department of Public Works: Referral sent on 02/12/2020. Response
with comments received on 03/11/2020.
vi. Weld County Office of Emergency Management (OEM): Referral sent on
02/12/2020. OEM responded with an approved the Emergency Action Plan (EAP) and
Tactical Response Plan (TRP) on 02/21/2020.
vii. Southeast Weld Fire Protection District: Referral sent 02/12/2020. Response
indicating to conflict with the proposed Oil and Gas Location received on
02/12/2020.
10. Verdad certifies that they have a Surface Use Agreement (SUA) with the Surface Owner of the
tract where the proposed Oil and Gas Location will be sited.
11. The OGED did not receive any Applications for Intervention regarding 1041WOGLA19-0007.
CONDITIONS OF APPROVAL
The Staff recommendation for approval is conditioned upon the Applicant's compliance with Chapter 21,
Article 5, Division 4 and other applicable sections of the Weld County Code, the BMPs and other mitigation
measures identified in the application, as well as applicable state and federal requirements. Additionally,
OGED Staff recommends the following specific Conditions of Approval:
1. Prior to Construction
a. A Final Drainage Report stamped and signed by a Professional Engineer registered in the State
of Colorado shall be submitted to Weld County Public Works.
b. A Weld County Grading Permit issued by Weld County Public Works shall be required.
2. Prior to Drilling Operations
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early Koopes Clerk and Recorder Weld County, CO
VIII NIrAI'IIV'Iia' i141lifiNAWITI IX* Al 11 II 1
PROPOSED ACCESS ROAD
CATTLEGUARC
FENCE
BLACK MOUNTAIN 2024-01H
DCP PIPELINE
NOTE
EQUIPMENT PLACEMENT IS APPROXIMATE AND SUBJECT TO MODIFICATION DUE TO SPECIFIC CIRCUMSTANCES
FEATURE
DCP PIPELINE
FENCE
TANK BATTERY
EXISTING PIPELINE
O'BRIAN PIPELINE
LOST CREEK 1-20
TWO TRACK
LOST CREEK 13-20 HSR
FENCE
SECTION LINE
SECTION LINE
TWO TRACK
TWO TRACK
FENCE
BUILDING: 5280'±
BUILDING UNIT: 5280'±
HIGH OCCUPANCY BU: 5280`±
DOHA: 5280'±
PUBLIC ROAD: 5280'±
ABOVE GROUND UTILITY: 5280'±
RAILROAD: 5280'±
PROPERTY LINE: W 460'±
SCHOOL FACILITY: 5280'±
SCHOOL PROPERTY LINE:5280'±
CHILD CARE/DAY CARE: 5280'±..
DISTAN
127'±
187`±
215`±
78'±
154`±
289'±
349'±
281±
120`±
186'±
792'±
1140'±
1046'±
30'±
FROM PROD
ILI Y
5280'±
5280'±
5280'±
5280'±
5280'±
5280'±
5280'±
W 624'± (TAN
5280'±
5280'±
5280'±
OPOGRAPHIC
LOYALTY INNOVATION LEGACY
520 Stacy Court Ste B Lafayette, CO 80026
303 666 0379 www topographic corn
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Carly Kopp., Clark and Recorder, Wald County, CO
ill RATIPIRKIAtligilelAtifkraililddlivi till
a. Applicant shall provide initial baseline groundwater sampling data, collected pursuant to
COGCC Rule 609, or a determination that the site is not subject to COGCC Rule 609.
ip 434, z7
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW/Regular or Consent Hearing Agenda REQUEST
RE: BOCC Agenda Item - Approve Road Maintenance Agreement for.
Verdad Resources, LLC—1041WOGLAI9-0007
DEPARTMENT: Public Works DATE: April 28, 2020
PERSON REQUESTING:
Brief description of the issue:
The Department of Public Works received a request from the applicant, Verdad Resources, LLC, requesting that
the Board of County Commissioners consider approving the Road Maintenance Agreement for
(1041 WOGLAl9-0007). No collateral is required with this agreement.
The Oil and Gas Energy Department's hearing for 1041 WOGLAI9-0007 is scheduled for April 30, 2020.
Weld County Public Works, Planning Services and the County Attorney's Office have reviewed the
above -mentioned signed original document and observed the following:
• All Public Works related items, of the "Road Maintenance Agreement According To Policy", are found to
be acceptable.
• This Agreement complies with the terms of the WOGLA Permit, as signed by the Director of Oil and Gas
Energy Department.
What options exist far the Board?
L Have this BOCC Hearing item be placed on the next available agenda as part of the Consent Agenda.
2. Have this BOCC Hearing item be placed on the next available agenda as part of the Regular Agenda.
Recommendation:
Option 1. The Departments of Public Works, Planning Services and the County Attorney's Office are
recesntnending approval of the Road Maintenance Agreement According To Policy for 1041 WOGLA 19-0007,
nod that this item be placed on the next regularly scheduled BOCC Hearing, as part of the Consent Agenda
Account altagraassilic
BOCC Hearing lrnn ¢than/Commeita
Mike Freeman, Chair
Scott K. James
Barbera Kirkmeyer
Steve Moreno, Pro-Tem
Kevin D. Ross
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2020-1333
ROAD MAINTENANCE
IMPROVEMENTS AGREEMENT
Verdad Resources, LLC — 1041 WOGLA19-0007
THIS AGREEMENT is made this s t.g day of f , 202Q by and between Verdad
Resources, LLC, a corporation organized under the laws of the State of Colorado, whose address is 1125
17th Street, Suite 550, Denver, Colorado 80202, hereinafter referred to as "Operator," authorized to do
business in the State of Colorado, and the County of Weld, a body corporate and politic of the State of
Colorado, by and through its Board of County Commissioners, whose address is 1150 "O" Street, Greeley,
Colorado 80631 hereinafter referred to as "County."
WITNESSETH:
WHEREAS, "Operator" is the responsible party of the 1041 Weld Oil & Gas Location Assessment
(1041 WOGLA) permit located on the following described property in the County of Weld, Colorado:
SW1/4 SW1/4 of Section 20, Township 3 North, Range
62 West of the 6th P.M., Weld County, Colorado
hereinafter referred to as "the Property," and
WHEREAS, Operator has received approval by the Hearing Officer of the Oil and Gas Energy
Department for 1041 WOGLAI9-0007, and
WHEREAS, Operator acknowledges that the final approval of 1041WOGLAI9-0007 is
conditional upon Operator's agreement to fund road maintenance, as described in this Agreement.
NOW, THEREFORE, IN CONSIDERATION OF the foregoing and of the promises and covenants
contained herein, the parties hereto promise, covenant and agree as follows:
PART I: SITE SPECIFIC PROVISIONS
A. PRIOR TO CONSTRUCTION AND OPERATIONS:
a
cg
aim
1.0 Haul Routes: The Operator shall provide haul routes to be reviewed and approved by the
Department of Public Works. The Operator shall be financially responsible for its proportional share of the
County's costs associated with maintaining and/or improving designated haul/travel routes as related to
traffic generation. Traffic generated from this site shall enter and exit at the approved access on CR 386
and travel to the nearest paved arterial or collector road, or highway, and remain on paved roads for further
dispersal. Any County roads used by traffic associated with 1041 WOGLAI9-0007 may become part of the
established haul/travel routes.
1.1 Haul Routes. The following roads are designated as hau/travel routes for any time period
designated as construction or high -volume traffic to and from the Property:
1) See "EXHIBIT A" - Haul Route Map.
2) The haul route shall remain in effect during all times of heavy road use including but not
limited to, construction, drilling of wells, and hydraulic fracturing.
Verdad Resources, LLC — 1041 W OGLA 19-0007 - RMA20-0014
Page 1 of 8
uc -,a.33
2.0 jslotice of Construction. A pre -construction inspection and a post -construction inspection shall be
performed by County personnel to determine the site -specific condition of the road. The Operator shall
provide the Weld County Department of Public Works with two weeks advance notice of the start of
construction activities authorized by the 1041 WOGLA permit, and shall give additional notice within two
weeks after'construction has been completed.
3.0 Weight Limits. No travel vehicles may exceed CDOT required specifications for pounds -per -axle
and axle configurations unless overweight permits have been applied for and granted. Operator is
responsible for researching weight limited bridges and obtaining a Special Transport Permit in accordance
with Chapter 8, Article XV, when establishing haul routes, and furthermore, must follow County
overweight permit and regulations.
4.0 Temporary Deviations. The Weld County Department of Public Works Director may approve
temporary (six months or less) deviations from the haul routes described above. To receive such approval,
the Operator must submit an updated haul route map and written request stipulating the reasons for the
deviation, which will be reviewed by the Department of Public Works. Any change in haul route lasting
more than six months shall require an amendment to this Agreement approved by the Board of County
Commissioners.
5.0 Haul Route Sigeage, Operator shall install travel route signs, if applicable, as per Manual of
Uniform Traffic Control Devices standards, at all exit points of the Property which can be clearly seen by
drivers leaving the facility and which clearly depict County approved travel routes.
6.0 No Deviation from Permitted Haul Routes. Except as authorized by the Weld County Board of
County Commissioners or the Director of the Department of Weld County Public Works, pursuant to this
Agreement, no use of any roads other than those specifically authorized for use in this Agreement is
permitted without the prior written amendment of this Agreement.
B. Maintenance Requirements:
1.0 Off -site recurring maintenance, if applicable, and as required by the Departments of Public Works
and Oil and Gas Energy, shall only be performed by a County approved contractor and have a county Right -
of Way permit for that specific location:
2.0 Dust Control. Operator shall be financially responsible for maintaining dust control on unpaved
designated haul/travel routes during any period of construction, heavy truck traffic, and/or high -volume trip
generation. The amount and extent of dust control will be coordinated with Public Works Gravel Roads
Division by site -specific conditions at the time. Operator shall use a County -pre -approved contractor for
chemical applications. Chemical treatment of unpaved roads along the relevant haul/travel route(s) is
expected to occur approximately two to five times per year, or as required by Public Works. If traffic
associated with this use exceeds 200 vehicles per day, per Weld County Code Section 8-6-100, the Operator
shall be responsible for dust abatement. On the basis of damage or complaints, as determined by the County,
the Operator shall cause to be performed within two days of notification, at its sole expense, chemical dust
control, or other treatment, by a contractor approved by Weld County Public Works. Should the traffic
related to 1041 WOGLAI9-0007 deteriorate the chemical application performed by the County, the
Operator will be responsible for re -applying chemical to return the road to pm -construction condition.
Depending on the amount of maintenance, as related to traffic associated with this use, the Department of
Public Works may require an alternative treatment method which may or may not include: topical chemical
application, full -depth chemical application, recycled asphalt or other surface treatment.
Verdad Resources, LLC — 1041WOGLA 19-0007 — RMA20-0014
Page 2 of 8
3.0 a air. Operator shall be financially responsible for its proportional share of the repair or
improvement, including but not limited to, excavation, patching, pavement and/or gravel repair, grading,
installing material on designated haul/travel routes. The amount and extent of repair and/or paving measures
will be determined by site -specific conditions at the time, as determined exclusively by County personnel.
Weld County and Operator will work together on a plan needed for repair of any roads, including who
performs the repair. Operator shall provide the County with a pre -approved contractor to be used for repairs.
4.0 Need for Immediate Repairs: to the event of damage to a designated haul/travel route by project
traffic that causes an immediate threat to public health and safety or renders the road impassible
("Significant Damage"), County shall, after inspection, notify Operator of such Significant Damage.
Operator shall identify the repair required and shall consult with County on the extent, type, timing,
materials and quality of repair (i.e. temporary versus permanent) within twenty-four (24) hours after receipt
of such notice and shall commence such repair within forty-eight (48) hours after receipt of such notice. If
Operator identifies Significant Damage prior to receiving notice thereof from County, Operator may
commence repair of such Significant Damage and shall concurrently notify County of the extent, type,
timing, materials and quality of repair (i.e. temporary versus permanent).
5.0 Repair of Road: On or before December 31 of the calendar year in which County staff has
determined through site analysis and/or pavement testing that a particular haul/travel route road portion will
require paving measures or major gravel maintenance in order to protect the public health, safety, and
welfare, and the County has budgeted sufficient funds for the following calendar year to pay its sham of
the Off -Site Improvement/Repair Costs, County shall notify Operator in writing that the Off -Site
Improvements/Repairs shall be undertaken and shall provide an alternate haul route for the duration of those
repairs. In County's sole discretion, County may undertake the repairs and/or improvements. Operator's
payment for its Proportionate Sham of the road repairs/improvements will be calculated as determined in
this Agreement. Operator will be invoiced accordingly for those proportional share costs.
6.0 Calculation of Operator's Proportional Share of Costs. The County shall notify Operator of
County's preliminary determination and assessment of Operator's proportional share of costs of
maintenance, repair, or improvements to Operator's designated haul/travel routes. Prior to County's final
determination and assessment, County shall provide Operator with a reasonable opportunity to review,
comment upon and supplement County's data, collection methodology, and determinations. The County
shall review and consider Operator's input prior to making a final determination and assessment. The
County shall have sole responsibility for determination of Operator's proportional share of costs. Operator
agrees to pay such proportional share of costs within 30 days of receiving an invoice from County.
7.0 Annual Road Inspection. County may conduct a road inspection annually with the cooperation of
Operator for the haul routes designated in this Agreement. Asa result of the annual inspection, County, in
its sole discretion, shall determine actual conditions and shall further determine what road
repair/improvement/maintenance work is to be performed during that construction season. Notification to
the Operator of the required roadway repairs will be given as soon as the data become available.
8.0 Notification. The County shall notify Operator of County's preliminary determination and
assessment of Operator's proportionate sham of costs of maintenance, repair, or improvements to
Operator's designated haul/travel routes. Prior to County's final determination and assessment, County
shall provide Operator with a reasonable opportunity to review, comment upon and supplement County's
data, collection methodology, and determinations. The County shall review and consider Operator's input
prior to making a final determination and assessment.
PART II: GENERAL PROVISIONS
Verdad Resources, LLC — 1 041 WOGLA19-0007 -RMA20-0014
Page 3 of 8
A. Permits: The Operator is required to apply for and receive all permits required by the County or
any other applicable local, State, or federal permit, including but not limited to:
1.0 Access Permits. Operator shall not use any access onto any County road unless and until an access
permit has been issued by the Department of Public Works. Public Works may condition the issuance of an
updated access permit on the amendment of this Agreement if the updated access permit authorizes the use
of an additional access point, or if there is a change in use of the current access point, as permitted by Article
XIV of Chapter 8 of the Weld County Code.
2.0 Right -of -Way (ROW) Permits, Per Article XIII of Chapter 8 of the Weld County Code, any work
occurring within County ROW requires a ROW permit issued by the Department of Public Works. No work
shall occur without said ROW permit.
3.0 Transport Permits. Per Article XV of Chapter 8 of the Weld County Code, a Weld County
Transport Permit is required for Extra -legal vehicles using Weld County roadways to ensure the operation
and movement of Extra -legal Vehicles and Loads occurs in a safe and efficient manner.
B. Enforcement and Remedies:
1.0 Violation of Terms of Agreement, If in County's opinion, Operator has violated any of the terms
of this Agreement, County shall notify Operator of its belief that the Agreement has been violated and shall
state with specificity the facts and circumstances which County believes constitute the violation. Operator
shall have fifteen (15) days within which to either cure the violation or demonstrate compliance. If, after
fifteen (15) days have elapsed, County believes in good faith that the violation is continuing, County may
consider Operator to be in breach of this Agreement.
2.0 Remedies for Breach by Operator. la the event that County determines that Operator has violated
the terms of this Agreement, and has failed to correct said violation, County may exercise any or all of the
following remedies, or any other remedy available in law or equity.
2.1 Court Action. County may seek relief in law or equity by filing an action in the Weld
District Court or Federal District Court for the District of Colorado, except that no such civil action
or order shalt be necessary to access collateral for the purpose of completing improvements as
described above.
84
3.0 "termination of Agreement. This Agreement shall terminate upon the earliest of the following
j 8- events:
_
2.2 Revocation of 1041 WOGLA Permit. Operator acknowledges that failure to comply with
the terms of this Agreement constitutes cause to revoke the 1041 WOGLA, and County may
exercise this option in its sole discretion by proceeding with revocation under the current provisions
of the Weld County Code.
3.1 Failure to Commence. County may terminate this Agreement upon or after rescission of
the underlying 1041 WOGLA permit approval under Weld County Code Chapter 21. However,
County may still exercise all necessary activities under this Agreement that the County determines
necessary to protect the health, safety, and welfare of the residents of Weld County.
3.2 Cessation of all Permit Related Activities. Termination of this Agreement shall occur upon
Operator's complete cessation of all activities permitted by the 1041 WOGLA, including any clean
Verdad Resources, !IC — 1041 WOGLAI 9-0007 - RMA20-0014
Page 4 of 8
up or restoration required. A partial cessation of activities shall not constitute a Termination of this
Agreement, nor shall County's issuance of a partial release/vacation constitute a Termination.
Unless informed in writing by the Operator of cessation of activities, and verified by the County,
cessation shall only be presumed if the County determines that the site has been inactive for three
(3) years.
3.3 Execution of Replacement Agreement. This Agreement shall terminate following County's
execution of a new Improvements Agreement with a new Operator who has purchased the Property
or has assumed the operation of the business permitted by the 1041 WOGLA, and intends to make
use of the rights and privileges available to it through the then existing WOGLA.
3.4 Revocation of 1041 WOGLA. This Agreement shall terminate following County's
revocation of Operator's WOGLA, except that the Operator shall only be released from this
Agreement after the successful completion of any/all reclamation required under this Agreement.
C. General Provisions:
1.0 Successors and Assigns.
1.1 Except for the assignment of all or substantially all of Operator's assets, Operator may not
delegate, transfer, or assign this Agreement in whole or in part, without the prior express written
consent of County and the written agreement of the party to whom the obligations under this
Agreement are assigned. Consent to a delegation or an assignment will not be unreasonably
withheld by County. In such case, Operator's release of its obligations shall be accomplished by
County's execution of a new Agreement with the successor Operator of the property.
1.2 County's rights and obligations under this Agreement shall automatically be delegated,
transferred, or assigned to any municipality which, by and through annexation proceedings, has
assumed jurisdiction and maintenance responsibility over roads affected by this Agreement.
2.0 Severability. If any term or condition of this Agreement shall be held to be invalid, illegal, or
unenforceable by a court of competent jurisdiction, this Agreement shall be construed and enforced without
such provision, to the extent that this Agreement is then capable of execution within the original intent of
the parties.
3.0 Governmental Immunity. No term or condition of this contract shall be construed or interpreted as
a waiver, express or implied, of any of the immunities, rights, benefits, protections or other provisions, of
the Colorado Governmental Immunity Act §§24-10-101 et seq., as applicable now or hereafter amended.
SS
-a
4.0 No Third -Party $eaeficiary. It is expressly understood and agreed that the enforcement of the terms
and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly
reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of
action whatsoever by any other person not included in this Agreement. It is the express intention of the
undersigned parties that any entity other than the undersigned parties receiving services or benefits under
this Agreement shall bean incidental beneficiary only.
5.0 Entire AgreementlModifications: This Agreement including the Exhibits attached hereto and
incorporated herein, contains the entire agreement between the parties with respect to the subject matter
contained in this Agreement. This instrument supersedes all prior negotiations, representations, and
Verdad Resources, L1.C — 1041 WOGLAl9-0007 -- RMA20-0014
Page 5 of 8
understandings or agreements with respect to the subject matter contained in this Agreement. This
Agreement may be changed or supplemented only by a written instrument signed by both parties.
6.0 Board of County Commissioners of Weld County Approval. This Agreement shall not be valid
until it has been approved by the Board of County Commissioners of Weld County, Colorado or its
designee.
7.0 Ctloice of Law/Jurisdiction. Colorado law, and rules and regulations established pursuant thereto,
shall be applied in the interpretation, execution, and enforcement of this Agreement. Any provision included
or incorporated herein by reference which conflicts with said laws, rules and/or regulations shall be null
and void. In the event of a legal dispute between the parties, the parties agree that the Weld County District
Court or Federal District Court for the District of Colorado shall have exclusive jurisdiction to resolve said
dispute.
8,0 Attorneys' Fees/Legal Costs. In the event of a dispute between County and Operator, concerning
this Agreement, the parties agree that each party shall be responsible for the payment of attorney fees and/or
legal costs incurred by or on its own behalf.
9.0 Release of Liability, Operator shall indemnify and hold harmless the County from any and all
liability loss and damage County may suffer as a result of all suits, actions, or claims of every nature and
description caused by, arising from, or on account of the design and construction of improvements, and pay
any and all judgments rendered against the County on account of any such suit, action or claim, and
notwithstanding Section 7.0 above, together with all reasonable expenses and attorney fees incurred by
County in defending such suit, action or claim whether the liability, loss or damage is caused by, or arises
out of the negligence of the County or its officers, agents, employees, or otherwise except for the liability,
loss, or damage arising from the intentional torts or the gross negligence of the County or its employees
while acting within the scope of their employment. All contractors and other employees engaged in
construction of the improvements shall maintain adequate worker's compensation insurance and public
liability insurance coverage, and shall operate in strict accordance with the laws and regulations of the State
of Colorado governing occupational safety and health.
10.0 Binding Arbitration Prohibited. Weld County does not agree to binding arbitration by any
extra judicial body or person. Any provision to the contrary in this Agreement or incorporated herein by
reference shall be null and void.
11.0 Authority to Sign. Each person signing this Agreement represents and warrants that he or she is
duly authorized and has legal capacity to execute and deliver this Agreement. Each party represents and
warrants to the other that the execution and delivery of the Agreement and the performance of such party's
obligations hereunder have been duly authorized and that the Agreement is a valid and legal agreement
binding on such party and enforceable in accordance with its terms. If requested by the County, Operator
shall provide the County with proof of Operator's authority to enter into this Agreement within five (5)
days of receiving such request.
12.0 Acknowledgment. County and Operator acknowledge that each has read this Agreement,
understands it and agrees to be bound by its terms. Both parties further agree that this Agreement, with the
attached or incorporated Exhibits, is the complete and exclusive statement of agreement between the parties
and supersedes all proposals or prior agreements, oral or written, and any other communications between
the parties relating to the subject matter of this Agreement.
Verdad Resources, LLC-1041 WOGLAl9-0007-RMA20-0014
Page 6 of 8
13.0 Notwithstanding any other provision contained in this Agreement, for any conflict or potential
conflict between any term in this Agreement and the Resolution of the Board of County Commissioners
approving the underlying land use permit, the provisions of the Board's Resolution shall control. In the
event of a discrepancy between this agreement and the Weld County Code in effect at the time of the
agreement, the terms of the Weld County Code shall control.
Verdad Resources, LLC — 1 04 1 WOGLA 19-0007 - RMA20-0014
Page 7 of 8
OPERATOR: =.d R ces, LLC
By:
Name: `sue,.rA
Title: ✓e , Lid
STATE OF COLORADO
County of Weld
Date: OVzk zo Z o
SS.
t`k
The foregoing instrument was acknowledged before me thisVP day of lOr lAel- r3
202.9_, by
WI
Notary Puot,
State of Colorado
Notary Me 20174016588
My Commission Empires 04.17-2021
Not lc
WELD COUNTY:
ATTEST: C/ '€1
Weld my Clerk totheB
BY
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ke Freeman, Chair
MAY 0 6 2020
Ver. Resources, LLC — 1041 WOGLAl9-0007 RMA20.0014
Page 8 of 8
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VERDAD RESC'LJRCES MAPP 1
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JOB NO. 122824 8,122826
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1 OF 1
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♦
Contract Form
New Contract Request
Entity Information
Entity Name*
VERDAD RESOURCES LLC
Entity ID •
@00038645
Contract Name' Contract 1D
RMA20-0014 1041WOGLA19-0007 VERDAD RESOURCES LLC 3627
Contract Status
CTB REVIEW
❑ New Entity?
Parent Contract ID
Contract Lead • Requires Board Approval
DRANDERSON YES
Contract Lead Email Department Project #
dranderson@co weld co us
Contract Description •
RMA20-0014 1041 WOGLA19-0007 VERDAD RESOURCES. LLC NO COLLATERAL REQUIRED
Contract Description 2
Contract Type •
AGREEMENT
Amount*
$0 00
Renewable*
NO
Automatic Renewal
Grant
IGA
Department
PUBLIC WORKS
Department Email
CM-
PublicWorks@weldgovcorn
Department Head Email
CM-PublicWorks-
DeptHead@weldgov corn
County Attorney
BOB CHOATE
County Attorney Email
BCHOATE@CO WELD CO US
Requested BOCC Agenda
Date"
05/11/2020
Due Date
05/07/2020
Will a work session with BOCC be required?.
NO
Does Contract require Purchasing Dept. to be included?
NO
ff this is a renewal enter previous Contract ID
If this is part of a MA enter MSA Contract ID
Note. the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in
OnBase
Contract Dates
Effective Date Review Date" Renewal Date
05/04/2021
Termination Notice Period Committed Delivery Date Expiration Date •
05/11/2021
Contact Information
Contact Info
Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2
Purchasing
Purchasing Approver
CONSENT
Approval Process
Department Head Finance Approver
JAY MCDONALD CONSENT
Purchasing Approved Date
05104/2020
Legal Counsel
CONSENT
DH Approved Date Finance Approved Date Legal Counsel Approved Date
05/04/2020 05/04/2020 05/04/2020
Final Approval
BOCC Approved
BOCC Signed Date
®0CC Agenda Date
05/06/2020
Originator
DRANDERSON
Tyler Ref #
AG 050620
Submit
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