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HomeMy WebLinkAbout20170603.tiffRESOLUTION RE: APPROVE PETITION FOR ABATEMENT OR REFUND OF TAXES - BLACK DIAMOND ENERGY SERVICES, INC. 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, the Board of County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 27th day of February, 2017, at which meeting there were present the following members: Chair Julie A. Cozad, and Commissioners Steve Moreno and Mike Freeman, with Commissioners Sean P. Conway and Barbara Kirkmeyer being excused, and WHEREAS, notice of such meeting and an opportunity to be present has been given to the taxpayer and the Assessor of said County, with said Assessor, Christopher Woodruff, being present and taxpayer, Black Diamond Energy Services, Inc., not being present, and WHEREAS, the Board of County Commissioners has carefully considered the attached petition, and is fully advised in relation thereto. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board concurs with the recommendation of the Assessor and the petition be and hereby is, approved, and an abatement or refund be allowed as follows: CORRECTION TO ASSESSED VALUATION ABATEMENT OR REFUND TAX YEAR $2,741,520.00 $221,421.60 2016 CC: Ca. CFH0,G SRccw,BO/OK) O�-ppi;co•1/4-,+ 2017-0603 AS0096 TAX ABATEMENT PETITION - BLACK DIAMOND ENERGY SERVICES, INC. PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 27th day of February, A.D., 2017. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: ddt444) � .. . „k Weld County Clerk to the Board BYast, ulie A. Cozad, Chair puty Clerk to the Board �� _ EXCUSED Sean P. Conway ounty Attorney Date of signature:CD0f / ( 1 Steve Moreno, Pro -Tern 2017-0603 AS0096 bay, ��1-ooL 8 PETITION FOR ABATEMENT OR REFUND OF TAXES County: Weld Section I: Petitioner, please complete Section I only. Date: January 9, 2017 Month Day Year Petitioner's Name: Black Diamond Energy Services Inc Date Received (Use Assessor's or Cc JAN 13 2017 WELD COUNTY ASSESSOR GREELEY, COLORADO Petitioner's Mailing Address: 555 Jubilee Lane TX 75056 City or Town SCHEDULE OR PARCEL NUMBER(S) P9101325 t3o93a000O-13 State Zip Code PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPENE C E I V E D 13050 16 CR, Fort Lupton CO 8•O C, Q I FEB 0 7 2017 COMMI$SIIONERS Petitioner requests an abatement or refund of the appropriate taxes and states that the taxes assessed against me above property for the property tax year 2016 are incorrect for the following reasons: (Briefly describe why the taxes have been levied erroneously or illegally, whether due to erroneous valuation, irregularity in levying, clerical error, or overvaluation. Attach additional sheets if necessary.) Personal property assessed as though located on real property parcel 130932202001, levy district 52 located on real property parcel 130932000073, levy district 2228. Petitioner's estimate of value: $ 12,950,064 Actual Value (2016 Value Year at preper#y ysically taa,a l00 I declare, under penalty of perjury in the second degree, that this petition, together with any accompanying exhibits or statements, has been prepared or examined by me, and to the best of my knowledge, information, and belief, is true, correct, and complete. By Daytime Phone Number ( Email Daytime Phone Number ( 480 ) 419-2556 ext. 2452 Email jnoneman@dmainc.com *Lette / f agency must be attached when petition is submitted by an agent. 2017-0603 If the Board of County Commissioners, pursuant to § 39-10-114(1), C.R.S., or the Property Tax Administrator, pursuant to § 39-2-116, C.R.S., denies the petition for refund or abatement of taxes in whole or in part, the Petitioner may appeal to the Board of Assessment Appeals pursuant to the provisions of § 39-2-125, C.R.S., within thirty days of the entry of any such decision, § 39-10-114.5(1), C.R.S. Section II: Assessor's Recommendation (For Assessor's Use Only) Tax Year 2016 Actual Assessed Tax v Original j I53/5V 1/79i 5-0 3`�r1)Z`(5.1-IZ Corrected 9,453 5(3 2./711•. Stu I (D7,fi(03,'2 Abate/Refund v 0 2_ 2.1111_1 .0) �] Assessor recommends approval as outlined above. If the request for abatement is based upon the grounds of overvaluation, no abatement or refund of taxes shall be made if an objection or protest to such valuation has been filed and a Notice of Determination has been mailed to the taxpayer, § 39-10-114(1)(a)(I)(D), C.R.S. Tax year: 2016 Protest? ❑ No ❑ Yes (If a protest was filed, please attach a copy of the NOD.) ❑ Assessor recommends denial for the following reason(s): ,e44, Ly,p 'LC(' Assessor's or eputy Assessor's Signature 15-DPT-AR No. 920-66/15 FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY (Section III or Section IV must be completed) Every petition for abatement or refund filed pursuant to § 39-10-114, C.R.S. shall be acted upon pursuant to the provisions of this section by the Board of County Commissioners or the Assessor, as appropriate, within six months of the date of filing such petition, § 39-1-113(1.7), C.R.S. Section III: Written Mutual Agreement of Assessor and Petitioner (Only for abatements up to $10,000) The Commissioners of Weld County authorize the Assessor by Resolution No. to review petitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of $10,000 or less per tract, parcel, or lot of land or per schedule of personal property, in accordance with § 39-1-113(1.5), C.R.S. The Assessor and Petitioner mutually agree to the values and tax abatement/refund of: Tax Year 2016 Actual Assessed Tax r €•t5rtgii>lel. Corrected AbatelRefund 'hdte`Ttie total tax amount does not include accrued interest, penalties, and fees associated with late and/or delinquent tax payments, if applicable. Please contact the County Treasurer for full payment information. Petitioner's Signature Assessor's or Deputy Assessor's Signature Date Date Section IV: Decision of the County Commissioners (Must be completed if Section III does not apply) WHEREAS, the County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on / / , at which meeting there were present the following members: Month Day Year with notice of such meeting and an opportunity to be present having been given to the Petitioner and the Assessor of said County and Assessor Petitioner Black Diamond Energy Services, Inc (being present —not present), and WHEREAS, the said Name County Commissioners have carefully considered the within petition, and are fully advised in relation thereto, NOW BE IT RESOLVED that the Board (agrees —does not agree) with the recommendation of the Assessor, and that the petition be (approved --approved in part —denied) with an abatement/refund as follows: Year Assessed Value Taxes Abate/Refund Name (being present --not present) and Chairperson of the Board of County Commissioners' Signature I, County Clerk and Ex -Officio Clerk of the Board of County Commissioners in and for the aforementioned county, do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County this day of Month Year County Clerk's or Deputy County Clerk's Signature Note: Abatements greater than $10,000 per schedule, per year, must be submitted in duplicate to the Property Tax Administrator for review. Section V: Action of the Property Tax Administrator (For all abatements greater than $10,000) The - tion of the Board of County Commissioners, relative __ to this petition, is hereby roved El Approved in part $ aaI R • CoO ❑ Denied for the following reason(s): 30/ 15-DPT-A o. s20-66/15 BLACK DIAMOND GROUP PROPERTY TAX CERTIFICATE OF AUTHORITY Date: June 23, 2016 TO WHOM IT MAY CONCERN: This certifies that DuCharme, McMillen & Associates, Inc. and/or its designees is hereby authorized to represent the undersigned in all matters of property tax assessments before any governmental assessing officials or any other authority having jurisdiction regarding the assessment levied on the following described property for current or past years of assessment: Personal Property Weld and Pitkin Counties, Colorado BY: 2000 -715 - 5th Ave SW, Calgary, AB T2P 2X6 Phone: 403 206 4747 I Fax: 403 264 9281 I i 888 569 4880 Celine Lagace (Typed Signature) Senior US Tax Advisor (Corporate Title) Black Diamond Group (Company) BOXX Modular I Black Diamond Energy Services Black Diamond Camps & Lodging Black Diamond Logistics Black Diamond International BlackDiamondGroup.com NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Date of Notice: 07/10/2016 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00AM — 5:00PM ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION P9101325 2016 5248 L1 NORTH LAND PUD 1ST FG 13050 16 CR FORT LUPTON , CO BLACK DIAMOND ENERGY SERVICES INC PROPERTY OWNER BLACK DIAMOND ENERGY SERVICES INC 555 JUBILEE LANE LEWISVILLE, TX 75056 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW PERSONAL PROPERTY 12,950,064 9,453.513 TOTAL $12,950,064 59.453,513 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP15 - Your personal property valuation has been adjusted based on the consideration of all forms of obsolescence; including physical, functional and economic obsolescence If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): DUCHARME MCMILLEN & ASSOC INC 20830 NORTH TATUM BLVD SUITE 390 PHOENIX, AZ 85050 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 WELD COUNTY -w ONLINE MAPI'INt. Enter Map Title 285.9 0 WGS_1984_Web_Mercator Auxiliary_Sphere Weld County Colorado 142.96 285.9 Feet This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate. current, or otherwise reliable THIS MAP IS NOT TO BE USED FOR NAVIGATION Legend Parcels Highway El County Boundary Notes Enter Map Description 130932000073 Google Earth October 2014 Go gle Earth feet' meters _ 1000 500 A Google Earth November 2015 Go gle Earth feet meters 1000 500 A Property Report Page 1 of 2 WELD COUNTY Property Report PROPERTY PORTAL Technical Support: (970) 400-2500 Account: P9101325 February 7, 2017 Account Information Account Parcel Space p Account Type Tax Year Buildings Actual Value Assessed Value P9101325 130932000073 Personal 2017 9,453,513 2,741,520 Legal L1 NORTH LAND PUD 1ST FG Subdivision Block Lot Land Economic Area Property Address Property City Zip Section Township Range 13050 COUNTY ROAD 16 FORT LUPTON Owner(s) Account Owner Name Address P9101325 BLACK DIAMOND ENERGY SERVICES INC 555 JUBILEE LANE LEWISVILLE, TX 75056 Document History No documents found. https://propertyreport.co.weld.co.us/?account=P9101325 2/7/2017 N r Property Report Page 2 of 2 Building Information No buildings found. Valuation Information Type Code Description Actual Value Assessed Value Acres Land SqFt Personal Property 2410 EQUIP,FURN,MACH,COMM 9,453,513 2,741,520 0.000 0 Totals - - 9,453,513 2,741,520 0.000 0 Tax Authorities Tax Area District ID District Name Current Mill Levy 0810 0700 AIMS JUNIOR COLLEGE 6.308 0810 0302 CENTRAL COLORADO WATER (CCW) 2.004 0810 0309 CENTRAL COLORADO WATER SUBDISTRICT (CCS) 1.583 0810 0506 FORT LUPTON FIRE 9.302 0810 0530 FORT LUPTON FIRE (BOND 2022) 0.583 0810 1050 HIGH PLAINS LIBRARY 3.271 0810 0301 NORTHERN COLORADO WATER (NCW) 1.000 0810 0208 SCHOOL DIST RE8-FORT LUPTON 21.379 0810 0100 WELD COUNTY 15.800 Total - - 61.2302 Cnpyright C) 7017 Weld (nunty. Cn nradn All rights recerverl Privacy Policy & Disclaimer I Accessibility Information https://propertyreport.co.weld.co.us/?account=P9101325 2/7/2017 Dee Kayl From: Sent: To: Subject: Aaron Herrera <aherrera@fortlupton.org> Monday, January 30, 2017 11:21 AM Dee Kayl FW: R & R Hot Shot Service Inc Our planner confirmed the subject property is not in city limits. Aaron Herrera Assistant City Administrator City of Fort Lupton Office: (303)857-6694 x 119 Mobile: (303)990-4270 From: Alyssa Knutson Sent: Monday, January 30, 2017 11:18 AM To: Aaron Herrera <aherrera@fortlupton.org>; Mari Pena <mpena@fortlupton.org> Subject: RE: R & R Hot Shot Service Inc It is not in City limits. From: Aaron Herrera Sent: Monday, January 30, 2017 11:16 AM To: Mari Pena <mpena@fortlupton.org> Cc: Alyssa Knutson <AKnutson@fortlupton.org> Subject: FW: R & R Hot Shot Service Inc Hello, Please see the email from the Weld Assessor's office. Let me know if you have any questions. R&R Hot Shot Services doesn't ring a bell. Thanks, Aaron Herrera Assistant City Administrator City of Fort Lupton Office: (303)857-6694 x 119 Mobile: (303)990-4270 From: Dee Kayl mailto:dkayl@co.weld.co.us] Sent: Monday, January 30, 2017 11:01 AM To: Aaron Herrera <aherrera@fortlupton.org> Subject: R & R Hot Shot Service Inc Good Morning Aaron, 1 I received your message in regard to the above account I was asking you to research your records to make sure we did not miss anything. The parcel is 130932000073 (Account#R0061788). We currently do not show this property annexed in though it appears it is surrounding by annexations. Can you please verify that this is correct. Please let me know if you need any additional information. Thanks! Dee fcatuL Assesswaev't GoordLvvator PHONE 57o)400-3055 FAX O7o) 3o4 -To -433 Dk.a jLC�weLo ov.covu Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.symanteccloud.com This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.symanteccloud.com 2 CLERK TO THE BOARD PHONE: (970) 400-4225 FAX: (970) 336-7233 1150 O STREET P.O. BOX 758 GREELEY, COLORADO 80632 February 7, 2017 Black Diamond Energy Services, Inc. 555 Jubilee Lane Lewisville, TX 75056 RE: SCHEDULE NUMBER P9101325, PARCEL NUMBER 130932000073 Dear Property Owner: This is to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on the property described as: Black Diamond Energy Services, Inc., at 13050 County Road 16, Fort Lupton, CO 80621. The meeting is scheduled for February 27, 2017, at 9:00 a.m., in the Chambers of the Board of County Commissioners of Weld County, Colorado, Weld County Administration Building, 1150 O Street, Assembly Room, Greeley, Colorado 80631. The Assessor is recommending that the Board approve your petition. You are not required to be present at this hearing; however, this is your opportunity to have your position heard, particularly if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact me at (970) 400-4225. Sincerely, a (-41%“/ Chloe A. Rempel Deputy Clerk to the Board cc: Assessor Assistant County Attorney DuCharme, McMillen and Associates, Inc. WELD COUNTY PETITION FOR ABATEMENT OR REFUND OF TAXES CERTIFICATE OF MAILING FIRST NAME LAST NAME COMPANY ADDRESS 1 CITY STATE POSTAL CODE Celine Lagace Black Diamond Energy Services, Inc. 555 Jubilee Lane Lewisville TX 75056 N/A N/A Ducharme, McMillen and Associates, Inc. jnoneman@dmainc.co N/A N/A N/A m I hereby certify that I have sent a notification of hearing date letter in accordance with the notification requirements of Weld County in E-mail and in the United States Mail, postage prepaid First Class Mail by letter as addressed on the attached list this 7th day of February, 2017. a Chloe A. Rempel Deputy Clerk to the Board ci C m N 0 O C O N O rR U.S. Postal Service' CERTIFIED MAIL° RECEIPT Domestic Mail Only For delivery information, visit our website at www.usps.com®. OFFICIAL USE Certified Mail Fee snick./ Extra Services & Fees (check box, add fee as appropriate) ❑ Return Receipt (hardcopy) $ O Return Receipt (electronic) $ ❑ Certified Mail Restricted Delivery $ Adult Signature Required $ Adult Signature Restricted Delivery $ Postage Total Postage and Fees t To O Street nd Apt. No. or Pb Box No. 5 3 b; ket City, State, ZIP+4e L-ew;svitie , TX -'505(0 Postmark Here s PS Form 3800, April 2015 PSN 7530-02-000-9047 See Reverse for Instructions SENDER: COMPLETE THIS SECTION • Complete items 1, 2, and 3. • Print your name and address on the reverse so that we can return the card to you. • Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: OHn: C.e,1i nee La ke ct ctacK Sex-r;cts , znc. 665 -Sob;T oo SCo L�w;gv�tle� i u i i IIIiIII II u 9590 9402 1714 6053 4703 41 i COMPLETE THIS SECTION ON DELIVERY A; Sig X g.4, gent Addressee B. Received by (Printed Name) C. Date of efvery ^lLI (7 D. Is delivery address different from item 1? O If YES, enter delivery address below: S O 2. Article Number (Transfer from service label) 7016 0750 0000 7938 2876 3. Service Type ❑ Adult Signature ❑ Adult Signature Restricted Delivery pc Certified Mail® ❑ Certified Mail Restricted Delivery ❑ Collect on Delivery ❑ Collect on Delivery Restricted Delivery .•Mail 'Aail Restricted Delivery o) ❑ Priority Mail Express® ❑ Registered Mail", ❑ Registered Mail Restricted Delivery ❑ Return Receipt for Merchandise ❑ Signature Confirmationm ❑ Signature Confirmation Restricted Delivery PS Form 3811, July 2015 PSN 7530-02-000-9053 Domestic Return Receipt Chloe Rempel From: Sent: To: Subject: Ms. Rempel — Noneman, Jesse <jnoneman@dmainc.com> Wednesday, February 08, 2017 9:55 AM Chloe Rempel RE: TAX ABATEMENT PETITION - Black Diamond Energy Services Inc Thank you for the notification, we will mark our calendars accordingly. Jesse Noneman I Sr. Director, Property Tax DMA — DuCharme, McMillen & Associates, Inc. 120830 N. Tatum Blvd., Suite 390, Phoenix, AZ 85050 Phone: 480-419-2556, ext. 2452 I Fax: 480-419-2597 Connect: jnoneman@dmainc.com I Website I Linkedln I Twitter I Facebook ATTENTION: This message and all attachments are PRIVATE, and may contain information that is CONFIDENTIAL and PRIVILEGED. If you have received this message in error, please notify the sender by reply e-mail and delete the message immediately. From: Chloe Rempel [mailto:crempel@co.weld.co.us] Sent: Tuesday, February 07, 2017 2:44 PM To: Noneman, Jesse <jnoneman@dmainc.com> Subject: TAX ABATEMENT PETITION - Black Diamond Energy Services Inc Hello, Please see the attached letter to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on February 27, 2017 at 9:00 a.m. in the Chambers of the Board of County Commissioners hearing room. If you have any questions or concerns, please do not hesitate to contact me. Sincere regards, Chloe A. Rempel Deputy Clerk to the Board Weld County 1150 0 Street Greeley, CO 80631 tel: 970-400-4225 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return 1 Chloe Rem el From: Sent: To: Cc: Subject: Attachments: Milner, Michele <mmilner@dmainc.com> Friday, February 17, 2017 2:50 PM Chloe Rempel Noneman, Jesse; Monday, Jessica; Celine Lagace; proney@blackdiamondgroup.com Abatement Hearing - Schedule Number P9101325 - Black Diamond Energy Services, Inc. - Scheduled for Hearing 02/27/17 Weld County Abatement Hearing Support for EMail Submission.pdf Hi Chloe — Attached is our documentation in support of our position. Please let us know if you have any questions or concerns. Best regards, Michele Michele Milner I Manager - Property Tax DMA — DuCharme, McMillen & Associates, Inc. I Phoenix, AZ Phone: 480-419-2556 ext. 2513 I Cell: 602-316-4023 Connect: mmilner@dmainc.com Website: www.dmainc.com ATTENTION: This message and all attachments are PRIVATE, and may contain information that is CONFIDENTIAL and PRIVILEGED. If you have received this message in error, please notify the sender by reply e-mail and delete the message immediately. To unsubscribe from marketing and sales emails, please reply unsubscribe in the subject line. 1 February 17, 2017 AN EXTENSION OF YOUR TAX DEPARTMENT Clerk to the Board Weld County Attn: Chloe Rempel 1150 O Street PO Box 758 Greeley CO 80631 RE: BLACK DIAMOND ENERGY SERVICES, INC - SCHEDULE NUMBER P9101325, PARCEL NUMBER 130932000073 To All Concerned, Attached is documentation that we intend to submit at hearing in support of our position. The taxpayer's personal property account, P9101325, was assessed as located on parcel 130932202001. After review of the real property lease, it was discovered that the personal property is actually located on parcel 130932000073. The two parcels are located in different tax areas 5248 and 2228, respectively. This issue alone is our reason for requesting an abatement, the 2016 valuation for this account is not in question. Please contact the undersigned should you have any questions or concerns. ./ Sjricerely, ichi le Manager — Property Tax DMA - DUCHARME, MCMILLEN & ASSOCIATES, INC. I DMAINC.COM 20830 N. Tatum Blvd., Suite 390 1 Phoenix, AZ 85050 1480-419-2556 ( Fax: 480-419.2597 SUBLEASE AGREEMENT THIS SUBLEASE AGREEMENT (this "Sublease") is made and entered into effective as of July 1st , 2015 (the "Effective Date"), by and between K.P. Kauffman Company, Inc., a California corporation (the "Sublessor") and Black Diamond Energy Services Inc., a Delaware corporation (the "Sublessee"). WITNESSETH: WHEREAS, by that certain Lease Agreement dated February 15, 2006 (the "Lease"), R&R Hot Shot Inc. (the "Landlord") leased to Sublessor the premises located at 13050 WCR 16, Fort Lupton, Colorado (the "Sublet Premises"), as is more fully described in the Lease, a copy of which is attached hereto as Exhibit A; and WHEREAS, capitalized terms that are not defined herein shall have the meanings assigned them in the Lease; and WHEREAS, Sublessor desires to sublease to Sublessee, and Sublessee desires to sublease from Sublessor, the Sublet Premises upon the terms and conditions as set forth below. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sublessor and Sublessee agree as follows: 1. Term. The term of this Sublease shall commence on the Effective Date and extend until 11:59 PM on the day immediately preceding the first anniversary of the Effective Date (the "Term"). There will be no holding over under this Sublease under any circumstances. 2. Sublease. Subject to and upon the terms, provisions and conditions set forth in this Sublease, and each in consideration of the duties, covenants and obligations of the other hereunder, effective as of the Effective Date (the "Commencement Date"), Sublessor does hereby lease, demise and let to Sublessee, and Sublessee does hereby lease, demise and take from Sublessor, the Sublet Premises. This Sublease incorporates and is subject to the Lease, a copy of which is attached hereto. Sublessee agrees to assume, pay, perform and discharge all obligations and responsibilities of Sublessor under the Lease for the Tenn. 3. Basic Rent. Commencing on the Commencement Date and continuing through the Term, Sublessee agrees to pay monthly Basic Rent with respect to the Sublet Premises in the amount of 4. Security Deposit. Simultaneously with the execution of this Sublease Agreement, Sublessee has deposited with Sublessor an amount equal to (the "Sublet Security Deposit"), as security for the faithful performance of all the terms, conditions and covenants hereof. If, at any time during the Term, Sublessee shall be in default in the performance of any of the provisions of this Sublease or the Lease, Sublessor shall have the right, but not the obligation, to use such Sublet Security Deposit, or as much thereof as Sublessor may deem appropriate, to cure, correct or remedy such default. Upon termination of this Sublease, if Executed as of the Effective Date. SUBLESSOR: K.P. Kauffman Company, Inc., a California corporation By: V4 Name: Je rey V. Kauffman Title: Chief Operating Officer SUBLESSEE: Black Diamond Energy Services Inc. a Delaware corporation By: Name: Title: Ammlio *same CONSENT OF LANDLORD TO SUBLEASE AGREEMENT The undersigned hereby consents to the Sublease Agreement to which this Consent of Landord to Sublease is attached, dated effective as of July 1st , 2015, by and between K.P. KAUFFMAN COMPANY, INC., a California corporation (the "Sublessor") and BLACK DIAMOND ENERGY SERVICES INC., a Delaware corporation (the "Sublessee") as required by Section 9 of that certain Lease Agreement dated February 15, 2006, between R&R Hot Shot Inc. ("Landlord") and Sublessor (the "Lease"). Furthermore, Landlord hereby consents to the use of the Sublet Premises by Sublessee and the terms and conditions of the Sublease, all as described in the Sublease Agreement. Dated: June 24 , 2015 LANDLORD: R&R HOT SHOT INC., a Colorado Corporation By: a,dfOia:Ge Name: martin j Wnhnlich Title: President 9 a a a� Google Earth October 2014 Goggle Earthy rrefteeerts _ 1000 Google Earth 500 A Google Earth November 2015 Google Earth mefteeerst 1000 500 A Tax Account Page 1 of 1 Tax Account IMPORTANT: Be Sure to Click the UPDATE Button after Changing the "As Of' Date on the INQUIRY Widget. Summary Account Id Parcel Number Owners Address Situs Address Legal Inquiry As Of P9101325 130932202001 BLACK DIAMOND ENERGY SER VIC ES INC 555 JUBILEE LANE LEWISVILLE, TX 75056 13050 COUNTY ROAD 16 FORT L UPTON LI NORTH LAND PUD 1ST FG 02/06/2017 Payment Type O First Full Taxes Due $389,285.42 Total Due $389,285.42 Value Area Id Mill Levy 5248-5248 141.9962000 Actual Assessed EQUIP,FURN,MACH,COMM COMM - 2410 9,453,513 2,741,520 Taxes $389,285.42 The amount of taxes due on this page is based on last year's property value assessment. https://www.weldtax.com/treasurer/treasurerweb/account jsp?account=P9101325 2/6/2017 Property Report Page 1 of 5 WELD COUNTY Property Report PROP E RTY PORTAL Technical Support: (970) 400-2500 Account: R0061788 February 17, 2017 Account Parcel Space Account Tax Buildings Actual Assessed Type Year Value Value R0061788 130932000073 Commercial 2017 2 267,425 77,560 Legal PT NW4 32-2-66 LOT B AMD REC EXEMPT RE -296 (.18R) Subdivision Block Lot Land Economic Area SOUTH PLATTE IND PK Property Address Property City Zip Section Township Range 32 02 66 Account Owner Name Address R0061788 R & R HOT SHOT SERVICE INC 5611 BLUE SAGE DR LITTLETON, CO 801232713 https://propertyreport.co.weld.co.us/?account=R0061788&defaultsection=owner 2/17/2017 Property Report Page 5 of 5 Tax Area District ID District Name Current Mill Levy 2228 0700 AIMS JUNIOR COLLEGE 6.308 2228 0302 CENTRAL COLORADO WATER (CCW) 2.004 2228 0309 COLORADO WATER SUBDISTRICT CENTRAL C CS) 1.583 2228 0506 FORT LUPTON FIRE 9.302 2228 0530 FORT LUPTON FIRE (BOND 2022) 0.583 2228 1050 HIGH PLAINS LIBRARY 3.271 2228 0301 NORTHERN COLORADO WATER (NCW) 1.000 2228 1201 0.000 PLATTE VALLEY CONSERVATION 2228 0208 SCHOOL DIST RE8-FORT LUPTON 21.379 2228 0100 WELD COUNTY 15.800 Total - - 61.2302 Building 1 Building 2 Building 2 Page 1 Building 4 Page 1 Copyright © 2017 Weld County, Colorado. All rights reserved. Privacy Po icy & Disc aimPr [ Accessibility Information https://propertyreport.co.weld.co.us/?account=R0061788&defaultsection=owner 2/17/2017 Hello