HomeMy WebLinkAbout20232418.tiffRESOLUTION
RE: APPROVE TERMINATION OF ROAD MAINTENANCE IMPROVEMENTS
AGREEMENT FOR 1041 WELD OIL AND GAS LOCATION ASSESSMENT PERMIT,
1041WOGLA19-0052 - HIGHPOINT OPERATING CORPORATION
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute anc 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 18, 2020, Curt Moore, Hearing Officer for the Weld
County Oil and Gas Energy Department, approved 1041 Weld Oil and Gas Location Assessment
Permit, 1041 WOGLA19-0052, for HighPoint Operating Corporation, on the following described
real estate, to -wit:
SE1/4 SE1/4 of Section 26, Township 12 North,
Range 63 West of the 6th P.M., Weld County,
Colorado
WHEREAS, on May 20, 2020, the Board approved a Road Maintenance Improvements
Agreement for 1041 Weld Oil and Gas Location Assessment Permit, 1041 WOGLA19-0052, 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, HighPoint Operating Corporation, requesting that
the Board of County Commissioners consider approving the termination of the Road Maintenance
Improvements Agreement approved on May 20, 2020, since a site inspection was performed on
May 30, 2023, which confirmed the 1041 WOGLA19-0052 construction was not started within
three (3) years of approval and the permit expired on May 27, 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 WOGLAI9-0052, approved on May 20, 2020,
Reception #4592510, for HighPoint Operating Corporation, 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 1041WOGLA19-0052, approved on May 20,
2020, Reception #4592510, for HighPoint Operating Corporation.
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 WOGLAI9-0052, be, and hereby is, terminated.
4917150 Pages: 1 of 2
08/24/2023 12:22 PM R Fee:$0.00
Carly Koppel, Clerk and Reco-der, Weld County , CO
1111
CC;Pt- (TF/MN/Pt}/ST )
09/01/23
2023-2418
OG0003
APPROVE TERMINATION OF ROAD MAINTENANCE IMPROVEMENTS AGREEMENT
(1041WOGLA19-0052) - HIGHPOINT OPERATING CORPORATION
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 16th day of August, A.D., 2023.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: C�J11A;e4
Weld County Clerk to the Board
BY:
CLAtAuirtic--
Deputy Clerk to the Board
APP: s ED
County • ttorney
Date of signature: I12. I Z3
4917150 Pages: 2 of 2
08/24/2023 12:22 PM R Fee:$0.00
Carly Koppes, Clerk and Recorder, Weld County CO
VIII 1���14� l r � Vifiw k� �� 4���i�Y��4t''titiYVuilti 11111
erry
Sc
eman, Chair
Pro-Tem
2023-2418
OG0003
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: BOCC Agenda Item - Approve Termination of Road Maintenance Agreement for:
HighPoint Operating Corporation - 1041WOGLA19-0052
DEPARTMENT: Planning Services DATE: August 8, 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
HighPoint Operating Corporation, requesting that the Board of County Commissioners consider approving the
termination of the Road Maintenance Agreement for (1041 WOGLA19-0052). The Road Maintenance Agreement
was approved on May 20th, 2020 and recorded as Reception #4592510 and Tyler #2020-1543. The
1041 WOGLA19-0052 construction was never started within three years of approval thus 1041 WOGLA23-0052
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 1041 WOGLA 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 1041WOGLA19-0052, and that this item be placed on the next regularly scheduled BOCC Hearing, as part
of the Regular Agenda.
Perry L. Buck, Pro-Tem
Mike Freeman, Chair
Scott K. James
Kevin D. Ross
Lori Saine
Su000rt Recommendation Schedule
Place on B0CC Agenda Work Session
`OP
Other/Comments:
2023-2418
M to 0CR0003
i� #,33sy
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW/Regular or Consent Hearing Agenda REQUEST
RE: BOCC Agenda Item - Approve Road Maintenance Agreement for:
HighPoint Operating Corporation—104tWOGLAt9-0052
DEPARTMENT: Public Works DATE: May 5, 2020
PERSON REQUESTING: iaz mrtt Traiillo-Martinez
Brief description of the issue:
The Department of Public Works received a request front the applicant, HighPoint'bperating Corporation,
requesting that the Board of County Commissioners consider approving the Road Maintenance Agreement for
(1041 WOGLA 19-0052). No collateral is required with this agreement.
The Oil and Gas Energy Department's hearing for 1041 WOGLAI9-0052 is scheduled for May 07, 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 for the Board?
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 1. The Departments of Public Works, Planning Services and the County Attorney's Office are
recommending approval of the Road Maintenance Agreement According To Policy for 1041 WOGLAI9-0052,
and that this item be placed on the next regularly scheduled BOCC Hearing, as part of the Consent Agenda.
A rove
B0CC Homing ltent
Mike Freeman, Chair
Scott K. James
Barbara Kirkmeyer
Steve Moreno, Pro-Tem
Kevin D. Ross
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ROAD MAINTENANCE
IMPROVEMENTS AGREEMENT
HighPoint Operating Corporation —1041 WOGLAI9-0052
THIS AGREEMENT is made this day of Pla,c.it , 202Q, by and between HighPoint
Operating Corporation, a corporation organized under the laws of the State of Delaware, whose address is
555 17th Street, Suite 3700, 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:
SE1/4 SE1/4, Section 26, Township 12 North, Range 63
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 1041WOGLAI9-0052, and
WHEREAS, Operator acknowledges that the final approval of 1041WOGLAI9-0052 is
conditional upon Operator's agreement to fund road maintenance, as described in this Agreement.
NOW, THEREFORE, IN CONSIDERATION OF the futeguing and of le piotitises and covenants
contained herein, the parties hereto promise, covenant and agree as follows:
PART I: SITE SPECIFIC PROVISIONS
A. PRIOR TO CONSTRUCTION AND OPERATIONS:
1.0 Haul Routes: The Operator shall provide haul mutes 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 71 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 WOGLAI9-0052 may become part of the
established haul/travel routes.
1.1 Haul Routes. The following roads are designated as haul/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.
HighPoint Operating Corporation — 1041 WOGLAl9-0052 - RMA20-0019
Page 1 of 8
00@o -t59 3
2.0 Notice 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 Tem>2porary 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 Signage. Operator shall install travel mute 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 Pennitted 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 Renuirementa:
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:
8�
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 WOGLA19-0052 deteriorate the chemical application performed by the County, the
Operator will be responsible for re -applying chemical to return the road to pre -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.
HighPoint Operating Corporation — 1041 W0GLA19-0052 - RMA20-0019
Page 2 of 8
3.0 Repair. 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 one 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: In 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 mad 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 share 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 Share 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 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.
PART II: GENERAL PROVISIONS
5
HighPoint Operating Corporation — 1041 WOGLA 19-0052 - RMA20-0019
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 Pemtits. 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 pennit 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 pemutted 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 my 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 far Breach by Operator. In 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 shall be necessary to access collateral for the purpose of completing improvements as
described above.
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2.2 Revocation of 1041 WOGLA Permit. Operator acknowledges that failure to comply with
the terms of this Agreement constitutes came 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.
3.0 Termination of Agreement This Agreement shall terminate upon the earliest of the following
events:
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 peenitted by the 1041 WOGLA, including any clean
HighPoint Operating Corporation — 1041 WOGLAI9-0152 - RMA20-0119
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) year.
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.
4.0 No Third -Party Beneficiary. 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 be an incidental beneficiary only.
5.0 Entire Agreement/Modifications: 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
HighPoint Operating Corporation — 1041 WOGLAI9-0052 - RMA20-0019
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 Cotntnissioners of Weld County, Colorado or its
designee.
7.0 Choice 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 patties 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 Attom ys' 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 Authgrity 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.
HighPoint Operating Corporation — 1041 WOGLAI9-0052 — RMA20-0019
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.
HighPoint Operating Corporation — 1O4 WOGLAI9-0052 - RMA20-0019
Page 7 of 8
OPERATO HighPoint Operating Corporation
By.
Name:
Title: 14. •
STATE OF COLORADO
County of Weld
Date: 3/`i/Zow
SS.
The foregoing instrument was acknowledged before me thisday of March ,
2020_, by gar
WITNESS my hand and official neat
Caryf Cary N gt = r,,,„;•
STATE 0f CBR B •`:.r
PIOTMY w 28110008448
CBMSSICN aat►IES OU2412083
WELD COUNTY: /�
ATTEST:C/ `" it0; 6k.
Weld County Clerk to the Board
of blic
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
HighPoint Operating Corporation — 1041 WOGLAI9-0052 — RMA20-00I9
Page 8 of 8
MAY 202020
aoao-t593
4592510 Pans: 9 of 9
05/21/2026 01:51 PM R F•• $C 00
Carly Koc&.s ChM'. and OtDo*dSr Weld County, CO
it)P1r PitAIN&PAR SI
%NCR 67
Contract Form
New Contract Request
Entity Information
Entity Name
HIGHPOINT OPERATING
CORPORATION
Emity ID*
@00042005
Contract Name * Contract ID
RMA20-0019 1041 WOGLA19-0052 HIGHPOINT OPERATING 3654
CORPORATION
Contract Status
CTB REVIEW
Contract Lead
DRANDERSON
❑ New Entity?
Parent Contract ID
Requires Board Approval
YES
Contract Lead Email Department Project ae
dranderson@co weld co us
Contract Description *
RMA20.0019 1041WOGLAI9-0052 HIGHPOINT OPERATING CORPORATION NO COLLATERAL REQUIRED
Contract Description 2
Contract Type* Department
AGREEMENT PUBLIC WORKS
Amount" Department Email
$0 00 CM-
PublisWorks@weIdgov.com
Renewable*
NO Department Head Email
CM-PublicWorks-
Automatic Renewal DeptHead@weldgov cam
County Attorney
Grant BOB CHOATE
County Attorney Email
IGA BCHOATE@CO WELD CO US
Requested BOCC Agenda
Date •
05;20/2020
Due Date
05;16/2020
Willa work session with BOCC be required?*
NO
Does Contract require Purchasing Dept. to be included?
NO
If this is a renewal enter previous Contract ID
If this is part of a MSA enter MA Contras 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
05/13/2021
Termination Notice Period Committed Delivery Date Expiration Date'
05/202021
Contact Information
Contact Info
Contact Name Contact Type Contact Entail
Purchasing
Purchasing Approver
CONSENT
Approval Process
Department Head Finance Approver
JAY MCDONALD CONSENT
Contact Phone I Contact Phone 2
Purchasing Approved Rate
0511512020
Legal Counsel
CONSENT
DH Approved Date Finance Approved Date Legal Counsel Approved Date
05115/2020 05,15/2020 05O5/2020
Final Approval
®OCC Approved
0OCC Signed Date
0OCC Agenda Date
05120/2020 "
Originator
ORANDERSON
Tyler Ref A
AG 052020
Submit
4592513 Polies: 1 of 6
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Carly Koppes, Clark and Reoorder, Weld County, CO
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FINAL ORDER
BEFORE THE WELD COUNTY 1041 WOGLA HEARING OFFICER
Docket Number 1041WOGLA19-0052
1041 WOGLA Hearing Officer Curt Moore heard this matter on May 7, 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 SESE of Section 26, Township 12 North,
Range 63 West, 6th P.M., Weld County, Colorado. Present for the hearing were Kelly Holliday,
Permit and Enforcement Specialist, Weld County; Elisa Kunkel, Oil & Gas Technician; Weld
County; Gabe Kalousek, County Attorney, Weld County; and Jeff Fandrich, Senior Landman,
HighPoint Operating Corporation. 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. HighPoint Operating Corporation ("HOC" or "Applicant") as Applicant for the above
referenced Docket delivered its 1041 WOGLA Permit Application ("Application" or
"Permit") dated February 4, 2020 to the Weld County Oil & Gas Energy Director
("Director" or "Staff").
2. Upon review of the Application, Ms. Holliday 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 May 7, 2020 Ms. Holliday 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. Ms. Holliday
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.
Ms. Holliday concluded her testimony with a recommendation to the Hearing Officer that
the Application should be approved.
4. Ms. Holliday testified that she recommends the deletion of the Prior to Drilling COA
referenced in the Staff Report as the Application contemplates no drilling operations.
5. Mr. Fandrich testified that the proposed production facility will be connected to as many
as twenty-eight (28) wells in the area and will further be connected to planned and
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Carly Koppas, Clerk and Reoorder, Weld County, CO
VIII FAT Pigleh'4it11'hUM PINA`"ClIAlYlvh BIM
existing operated mid -stream infrastructure. Mr. Fandrich testified that the proposed
site, when compared to other alternatives that the Applicant considered, will either
reduce additional impacts and disturbance areas at the nearby well sites or will eliminate
the creation of a new disturbance at other undisturbed alternative sites. Mr. Fandrich
further testified that this proposed facility will significantly reduce truck traffic by the
transportation of crude oil and produced water via pipeline systems.
6. Mr. Fandrich testified that the proposed facility will be constructed within steel
containment with impermeable lining to prevent impacts to soil and groundwater in the
event of a fluid leak or spill.
7. Mr. Fandrich testified that automation will be installed at this facility prior to first
production which will provide remote shut-in capabilities for the wells and facilities at this
location.
8. Mr. Fandrich testified that a Leak Detection and Repair ("LDAR") program and an audio,
visual, olfactory ("AVO") program is planned for this location including routine inspections
of the planned facility as part of an overall leak and spill detection program. Mr. Fandrich
further testified that inspection data taken from the LDAR and AVO programs would be
made available to the Weld County Department of Public Health and Environment if
requested.
9. Mr. Fandrich testified that there will be no permanent lighting installed at this location.
10. Mr. Fandrich gave testimony that he has reviewed and agreed to be bound to the
Development Standards within the Code; the COA's (with the understanding that the
Prior to Drilling COA is to be deleted) 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. Fandrich 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.
11. Upon review of the Application and the Staff Report and upon taking testimony from Ms.
Holliday and Mr. Fandrich the Hearing Officer found the Application to be complete.
12. 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 May 7,
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
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Carly Koppel, Clerk and Recorder, Weld County, CO
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1. HOC's 1041 WOGLA Permit heard under Docket Number 1041WOGLA19-0052 and located in
the SESE of Section 26, Township 12 North, Range 63 West, 61h P.M., Weld County, Colorado,
is hereby approved.
2. HOC is hereby bound to the Development Standards within the Code; the COA's (with the
exception of the Prior to Drilling COA which is hereby deleted by and through this Order) 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.us/citizenaccess/.
3. 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.
4. It is ordered that a LDAR and AVO program will be implemented for this location as part of an
overall leak and spill detection program and it is further ordered that inspection data taken
by the Applicant as part of the LDAR and AVO programs will be made available to the Weld
County Department of Public Health and Environment if requested.
5. 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.S., 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: l A,y I g 1 Z.ozv
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Carty Kopp., Clerk and Recorder, Weld County, CO
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1041 WOGLA Permit
STAFF REPORT
Record Number 1041WOGLA19-0052
Staff Specialist: Kelly Holliday
Location Name: Fox Creek 26 SE Production Faciliy
Parcel Number(s): 004326200009
Company/Applicant: HighPoint Operating Corporation
Representative: Jeff Fandrich & Cory Neighbors
Hearing Date: May 7, 2020
Legal Description: SE1/4SE1/4 of Section 26, Township 12 North, Range 63 West of the 6th P.M.,
Weld County, Colorado
Proposed Use: Oil and gas location including production facilities.
SUMMARY
The criteria for submission of the 1041 WOGLA Application is outlined in Section 21-5-320 of the Weld County Code.
The Staff of the Weld County Oil and Gas Energy Department (OGED) has completed their review of the Application
as submitted. The Staff of the OGED recommends 1041WOGLA19-0052 be APPROVED for the following reasons:
1. The submitted Application is in compliance with the requirements of Section 21-5-320 of the Weld
County Code.
2. In the opinion of the OGED Staff, HighPoint Operating Corporation (HighPoint or Applicant) has
shown compliance with the Development Standards outlined in Chapter 21, Article 5, Division 4 of
the Weld County Code. In doing so, HighPoint has committed to certain Best Management Practices
outlined in the Application, to promote the health, safety, security and general welfare of the
present and future residents of Weld County while protecting both the environment and wildlife.
3. Pursuant to Sec. 21-5-330. notice of the 1041 WOGLA Hearing was sent to required parties and was
originally published in the Greeley Tribune on February 28, 2020. Notice of the postponed hearing
date was then published on March 18, 2020.
4. The OGED Staff referred the Application to various agencies as required by Sec. 21-5-330.A. of the
Weld County Code. Where appropriate, conditions of approval are being recommended to address
comments received from referral agencies. Copies of those comments have been made part of the
Application record and are viewable through the E -Permit Center on the Weld County website.
a. Response was received from the following referral agencies:
i. Weld County Department of Public Health and Environment, referral request sent
2/25/2020. Comment received 3/11/2020.
ii. Colorado Department of Public Health and Environment, referral request sent
2/25/2020. Comment received 3/17/2020.
iii. Weld County Office of Emergency Management, referral request sent 2/25/2020.
Emergency Action Plan approved 3/19/2020.
iv. Weld County Department of Public Works, referral request sent 2/25/2020. Comment
received 3/24/2020.
b. No response was received from the following referral agencies:
i. Colorado Oil and Gas Conservation Commission, referral sent 2/25/2020.
ii. Colorado Parks and Wildlife, referral request sent 2/25/2020
iii. Pawnee Fire Protection District, referral sent 2/25/2020.
iv. Pawnee RE -12 School District, referral request sent 2/25/2020.
5. The OGED did not receive any Application for Intervention regarding this 1041 WOGLA Application.
6. HigPoint has identified Peters 313 Ranch Inc. as the owner of the property (Surface Owner) on
which the Oil and Gas Location is sited. HighPoint certifies that they have a Surface Use Agreement
in place with the Surface Owner. Pursuant to Sec. 21-5-320.8. HighPoint certifies that they have
provided pre -application notice to all required parties. HighPoint has confirmed there are no
Building Unit owners within one -thousand three -hundred twenty (1,320) feet of the Oil and Gas
Location.
7. The attached Location Drawing provides a depiction of the Oil and Gas Location with all visible
improvements within one -thousand three -hundred twenty (1,320) feet.
The OGED Staff recommendation for approval is conditional based upon the following requirements of the
Applicant:
1. Prior to Construction:
a. A Final Drainage Report stamped and signed by a Professional Engineer registered in the State
of Colorado in required. (Department of Public Works)
b. If more than one (1) acre is to be disturbed, a Weld County Grading Permit will be required.
(Department of Public Works)
2. Prior to Drilling:
a. Applicant must provide initial baseline groundwater sampling data, or information related to
how the site is exempt from the COGCC Rule 609, to the Weld County Department of Public
Health and Environment.
3. After Construction:
a. Upon completion of construction operations Applicant shall provide to the OGED a GIS map
showing the off -location Flowlines. This digital file should be sent to OGED@weldgov.com.
This recommendation is based upon the review of the Application material submitted by the Applicant and other
relevant information and comments provided by referral agencies.
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Carly Koppes, Clerk and Recorder, Weld County, CO
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COUNTY ROAD 71
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536E 511'
111GHPOINT OPERATING CORPORATION
UELS, LLC
Corporate Office • 85 South 200 East
Vernal, UT 84078 * (435) 789-1017
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State of Colorodo
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WELD COUNTY, COLORADO
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