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HomeMy WebLinkAbout20160573.tiff RESOLUTION RE: APPROVE RETURN OF CERTIFICATE NO. 4049, THE CACHE LA POUDRE RESERVOIR COMPANY, 1/2 SHARE, TO NIOBRARA ENERGY PARK LLC, FOR NIOBRARA ENERGY PARK PUD (PZ-1158) - RAWAH RESOURCES, LLC, CIO NIOBRARA ENERGY PARK, 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 Resolution dated March 16, 2011, the Board approved the application of Rawah Resources, LLC, do Niobrara Energy Park, LLC, do Craig Harrison, 2725 Rocky Mountain Avenue, Suite 400, Loveland, CO 80538, for Change of Zone, PZ-1158, on the following described real estate, to wit: All of Section 18, Township 11 North, Range 66 West of the 6th P.M., Weld County, Colorado, and WHEREAS, on August 23, 2011, the Board of County Commissioners accepted the submittal of the original Certificate No. 4049, The Cache La Poudre Reservoir Company, %share, issued to Niobrara Energy Park LLC, to hold in conjunction with the application for PZ-1158 to provide adequate water for the project in the event that augmentation of the wells on the property was necessary, as detailed in a letter addressed to the Board from Fred L. Otis, Esq., Attorney for the Applicant, dated June 8, 2011, a copy of which is attached hereto and referred to herein as Exhibit "A," and WHEREAS, as detailed in a letter from Mr. Otis to Bruce T. Barker, Weld County Attorney, dated January 4, 2016, a copy of which is included in Exhibit A, the wells underlying the subject property have been determined by the Office of the State Engineer, State of Colorado, to be "non-tributary," meaning that no augmentation for the wells intended to supply water for the PUD intended for the subject property will ever be needed, and WHEREAS, an email from Mr. Otis to Mr. Barker, dated January 18, 2016, with attachments, further explains that pursuant to a Revised Findings of the State Engineer, issued January 6, 2016, copies of which are attached hereto and referred to herein as Exhibit "B," Niobrara Energy Park, LLC, may withdraw 695 acre feet of water annually from the Upper Laramie Aquifer for up to 100 years, which will be a sufficient water supply for the PUD for that period of time, and WHEREAS, based upon the information supplied by Mr. Otis in Exhibits A and B, the Board deems it advisable to return to Niobrara Energy Park LLC said Certificate No. 4049, The Cache La Poudre Reservoir Company, 1/2 share, which is currently held for safekeeping by the Clerk to the Board. 2016-0573 PL2110 CC' Esth,t, G, "/aa RE: RETURN OF CERTIFICATE NO. 4049, THE CACHE LA POUDRE RESERVOIR COMPANY, 1/2 SHARE, TO NIOBRARA ENERGY PARK LLC, FOR NIOBRARA ENERGY PARK PUD (PZ-1158) - RAWAH RESOURCES, LLC, C/O NIOBRARA ENERGY PARK LLC PAGE 2 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Clerk to the Board is hereby instructed to return to Niobrara Energy Park, LLC, said Certificate No. 4049, The Cache La Poudre Reservoir Company, 1/2 share, which is currently held for safekeeping by the Clerk to the Board. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 8th day of February, A.D., 2016. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Je40;44e Mike Freeman Chair Weld County Clerk to the Board - F l - Sean P. Co way, Pro-T BY: . I . 1. �.� �• f t D ty Clerk to the ;oard ���� _:.f a JE ff A. Coza• APPROV AS 61 ,- a •ar Kirk eyer �rGl oun Attorney Oft, 4 � ./ eve Moreno Date of signature: c2/2.42 2016-0573 PL2110 z EXHIBIT Fred L.Otis The Doyle Bu 1812 56th Aven OTIS, BEDINGFIELD ,PETERS,LLC Greeley,CO 80634 ATTORNEYS AT LAW 970-330-6700 fotis@nocoattorneys.com www.nocoattorneys.com January 4, 2016 RECEIVED Bruce Barker Weld County Attorney JAN 0 8 2016 1150 O Street P.O. Box 758 WELD COUNTY COMMISSIONERS Greeley, CO 80632 Re: Application for PZ#1158 For P.U.D./Niobrara Energy Park, LLC Dear Mr. Barker: I am writing to you with regard to the referenced Application and with regard to the attached Letter dated June 8, 2011 from me to the Clerk to the Board of Weld County Commissioners ("June 8, 2011 Letter") and Water Certificate #4049 for V2 share of the capital stock in The Cache la Poudre Reservoir Company in the name of Niobrara Energy Park, LLC ("Share Certificate"). As you know, subsequent to my June 8, 2011 Letter, the Weld County Commissioners approved PUDF 14-0002—Niobrara Energy Park PUD. As indicated in my June 8, 2011 Letter, the purpose of submitting the Share Certificate to the Clerk to the Board of Weld County Commissioners was "...to hold in conjunction with the referenced application to provide adequate water for the project in the event that augmentation of the wells on the property is necessary." Subsequent to my June 8, 2011 Letter, it was determined by the State Engineer by Final Decision entered on December 28, 2012 that the water underlying the Niobrara Energy Park PUD is nontributary as that term is defined in CRS, Section 37-90- 103(10.5). See attached Final Decision of the State Engineer dated December 28, 2012. Since the wells underlying the PUD are nontributary,no augmentation will ever be needed. Simply put, the request of Niobrara Energy Park PUD is to return the Share Certificate since it is not needed for augmentation. Sincerely, Otis, 'ngfield & Peters, LLC Fred L. Otis Attorney at Law FLO/klk Enclosures cc: Craig Harrison Tom Parko—Weld County Department of Planning Services Michelle Martin—Weld County Department of Planning Services 2016-0573 PLallo • /MN\ OTIS, CORN & PETERS, LLC Fort Collins Office Fred L.Otis Attorneys and Counselors at Law 103 West Mountain Avenue,Suite 2B G. Lynn Coen' Fort Collins,CO 80524 JenniferMil Lynn Peters www.rgal.com Telephone: 970-225-6700 Brett P t Stewart Brett Payton^ PLEASE REPLY TO GREELEY OFFICE Facsimile: 970-232-9927 Shannon D.Lyons Fred L.Otis Daniel W.Jnes flotis@nocolegal.com Greeley Office MCharles M.Shoop an 1812 561"Avenue Sara K. t Payne Greeley,CO 80634 Sara K.Stieben Telephone: 970-330-6700 Jenna Seigel Facsimile: 970-330-2969 •Also licensed in Arizona ^Also licensed in California June 8, 2011 VIA HAND DELIVERY Clerk to the Board Weld County Commissioners 915 10th Street P.O. Box 758 Greeley, CO 80632 RE: Application PZ#1158 for P.U.D./Niobrara Energy Park, LLC si Dear Mr. Clerk to the Board: Attached is Certificate#4049 for '/z share of the capital stock in The Cache la Poudre Reservoir Company in the name of Niobrara Energy Park, LLC ("Share Certificate") to be held for safekeeping by the Weld County Clerk to the Board. This Certificate #4049 is tendered to you to hold in conjunction with the referenced application to provide adequate water for the project in the event that augmentation of the wells on the property is necessary. It s our understanding that the applicant will continue to own and be able to utilize the annual use of the water, even while not in possession of Certificate#4049. It is the applicants understanding that Certificate#4049 will be held by eld County until the earlier of the following scenarios, as determined by the Board of County Commissioners of Weld County: (a) That augmentation of the wells to be used to supply water in the iobrara Energy Park is not required,because the State Water Engineer has issued comm rcial exempt wells for each of the parcels that require water, or (b) That augmentation of wells is not required, because no water is eeded for the lots or alternative water has been provided, or 3 Clerk to the Board of Weld County Commissioners June 8,2011 Page 2 (c) That the purposes of holding Certificate#4049 have been satisfied It is our understanding that upon presentation of an alternate certificate of ater that satisfies that augmentation possibility in the same fashion as Certificate#4049, then th alternate certificate of water may be substituted for Certificate#4049. Since FRED L. OTIS Attorney for Applicant cc: Craig Harrison for Niobrara Energy Park, LLC 4 4 ---- ( V \ _} OTIS, COAX & PETERS, LLC v Attorneys and Counselors at Law Fred L.Otis flotis@nocolegal.com RECEIPT Received this 2311 day of August,2011,the following documents: 4 1. Letter dated June 8, 2011 to the Clerk to the Board, Weld County Commis ioners. 2. Original The Cache La Poudre Reservoir Company Certificate No.4049 f '/2 share issued to Niobrara Energy Park LLC. / — \--49)/T— o1A _ (3'-.0 )--/ I Printed Name: Wc `i ox..` 6;5/''1 P..4_, LJ •-.J lil The Doyle Building/ 1812 56th Avenue/Greeley,Colorado 80634/Telephone: 970- 30-6700/Fax:970-330-2969/ www.nocolegal.com Al ...._;,,,,,01016.n ,. • . , ,....,) , ,.. _ ., , i _,, ,cry g tr 1 , �i , .,�i , T /[/^�.,,� , �l 1 ( -S' { ) I ,,i� �7 j •1 + /f ,st ,,•,;, ,r) , , ' L.., ,, _, u q -lam • I o O C...) .--1 Ti, _'`q_./f,/ ..V�`.-..-11. .-! e �q `ti r, O N �I ~'] pCj � (d a $ • v., C X .c z a) c Z Cc 7, m d. �. �- o N\ J `,. t. 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L, ���j0 ;� �, - , Lay L Y .R ''''.2!.V7)TT �Y ; -_-,2 }/ ≥..,s: -.f - \ tii- r� �: :' fit ���;. -! 42.\ ! � .J .r'� _ - • BEFORE THE OFFICE OF THE STATE ENGINEER STATE OF COLORADO IN THE MATTER OF THE NIOBRARA ENERGY PARK LLC PETITION FOR ) NONTRIBUTARY GROUND WATER IN THE LARAMIE FORMA ION IN ) NORTHERN WELD COUNTY, COLORADO; (UNDER) PERMIT PPLICATION ) RECEIPT NO. 3655537) IN REFERENCE TO ISSUANCE OF VI/ LL PERMITS ) PURSUANT TO SECTION 37-90-137(4), C.R.S. ) FINAL DECISION OF THE STATE ENGINEER This matter involves a petition ("Petition") submitted by Niobrara Energy Park ("Applicant") on June 4,2012 requesting a determination of nontributary ground water for an area as further described in the attached Initial Determination of the State Engineer's Office. The Applicant submitted the petition in accordance with the State Engineer's Policy 2010-4 and gave notice as required by the policy. The policy allows 30 days for any person to respond to the petition. Te SEO received no comments from any parties. The Applicant provided clarification on tl�e petition in subsequent correspondence. As a result of the correspondence and further discussion between the Applicant and the staff of the Hydrogeological Services branch of the Division o Water Resources ("Staff"), the Staff completed an Initial Determination on December 2 , 2012. I FINAL DECISION OF THE STATE ENGINEER 1 1 1. The State Engineer has reviewed the Petition submitted by the Applicant and the Initial Determination completed by the Staff. I 2. The State Engineer has determined that Applicant and the Staff have acted in accordance with Policy 2010-4 and hereby adopts the Initial Determination (attached) and grants the Petition by finding that the subject ground water identified in the Ifiitial Determination is nontributary, as that term is defined in Section 37-90-103(10.5). i �,. �,,,� Dated this 28th da of December, 2012 ick Wolfe, Dire r/State Engineer 1 BEFORE THE OFFICE OF THE STATE ENGINEER STATE OF COLORADO INITIAL DETERMINATION OF THE NONTRIBUTARY NATURE OF GROUND WATER PURSUANT TO STATE ENGINEER'S POLICY 2010-4 IN THE MATTER OF THE NIOBRARA ENERGY PARK LLC PETITION FOR NONTRIBUTARY GROUND WATER IN THE LARAMIE FOR TION IN NORTHERN WELD COUNTY, COLORADO; (UNDER PERMIT APPLIC TION RECEIPT NO. 3655537) IN REFERENCE TO ISSUANCE OF WELL PER ITS PURSUANT TO SECTION 37-90-137(4), C.R.S. Background Niobrara Energy Park LLC ("Applicant") submitted a Petition for Determination of Nontributary Ground Water("Petition") in conjunction with the issuance of well permit on June 4, 2012 in accordance with Policy 2010-4, A Technical Report, titled "Niobrara ata Center Energy Park— Professional Report, prepared by Quantum Water Consulting (Quantu ) and dated June 1, 2012 accompanied the Petition in fulfillment of the submittal requirements o the Policy. The property associated with this petition is known as Niobrara Energy Park (NEP) d encompasses the approximately 640 acres of Section 19, Township 11 North, Range 66 'Vest of the sixth principal meridian, Weld County, Colorado. Its location is approximately 2.5 miles east-northeast of the unincorporated town of Carr, Colorado. This"Initial Determination" is provided as required in Policy 2010-4, and is based on the information provided by Applicant' consultant and contained in the Professional Report. 1 The Applicant's Petition is for an aquifer unit comprised of"silt-rich shale" from 1,400 feet to 1,800 feet below ground surface (bgs) within what Quantum thought to be the upper part of the Pierre Shale. This geologic correlation led Quantum to provisionally name the producing zone as the"Pawnee Aquifer." After review of the June 1 Professional Repcirt and auxiliary geologic information, SEO staff determined that the water producing zone was ictually within the Fox Hills Sandstone of the Laramie-Fox Hills aquifer, as that aquifer is rec gnized in the administrative portion of the Denver Basin. This information was co municated to the Applicant's consultant (Quantum) on August 22"d Subsequently, Quantum provided a supplemental letter report dated S tember 181h indicating that the Laramie-Fox Hills aquifer crops out north of the closest pere ial stream, the Cache la Poudre River, and does not intersect its alluvium. For this reason they deemed it nontributary. In the September 18`h report, Quantum also redefined the target aquife as the full thickness of the Laramie Formation and the Fox Hills Sandstone intervals, and ass ed that these geologic formations are "one contiguous, saturated interval" representing an un onfined aquifer. On November 2nd the SEO communicated to Quantum that it disagree with its assertion that the Laramie-Fox Hills aquifer did not intersect the alluvium of the Cache Poudre River. Quantum Page 1 of 5 r 1 then supplied a letter report,dated November 6th, acknowledging that t e Laramie-Fox Hills is in contact with the Poudre River and its alluvium just north of Greeley. e letter report included a run of the Glover-based analytical model IDS AWAS (Integrated Deci ion Support Group Alluvial Water Accounting System)to support its claim that the Laram e-Fox Hills aquifer at the NEP location is nontributary to the Cache la Poudre and its alluvium. The SEO responded to Quantum via email on December 6,2012, that t e full thickness of the Laramie Formation and the Fox Hills Sandstone interval was not a con iguous,saturated,and unconfined interval and therefore,the IDS-AWAS modeling for the w ale interval was not appropriate. In its response,the SEO explained that the geologic data i dicate the presence of two separate aquifers in the Laramie Formation and Fox Hills Sandsto e interval—a deep, 4 confined Laramie-Fox Hills aquifer equivalent to that of the administr ive Denver Basin and a shallower, unconfined "upper Laramie aquifer." In relation to this, the SEO suggested appropriate hydraulic parameters for each aquifer. A telephone conference was convened on December 7`h with the appli nt and Quantum regarding the SEO's interpretation of the geological framework. Duri g this meeting the applicant communicated that they intended to limit their nontributary uifer claim to the unconfined upper Laramie aquifer. Quantum followed up with a Dece ber 11, 2012 email confirming the telephone conference discussion and included new Glo er-based IDS-AWAS modeling for the upper Laramie aquifer. The original professional report and the subsequent letter reports form he basis for this initial determination. Geology/Hydrogeology Niobrara Energy Park is located in Weld County in Section 19,Towns ip 11 North, Range 66 West, 6`h P.M. Structurally, the parcel is in the Cheyenne Basin whic lies north of the Denver Basin. The two basins are separated by the east-west trending Greele Arch. As the Upper Cretaceous aged Laramie Formation lies at the surface o er most of the Cheyenne Basin, the only common aquifer unit with the Denver Basin system is he Laramie-Fox Hills aquifer. The Laramie-Fox Hills aquifer within the Cheyenne basin ca be up to 450 feet thick. The Laramie Formation (including the basal sandstones)thickens to a out 1,500 feet near the Colorado-Wyoming border and contains more sandstone than is corn on to the formation in the Denver Basin. Geologic evidence contained in published geologic m s and literature,oil and gas well geophysical logs, water well drillers logs, and the applicant's est hole (50626-MH) indicate the existence of two principal water-bearing zones within Up r Cretaceous rocks in the northern Colorado area of the Cheyenne Basin. These are, from top t bottom,the"upper Laramie aquifer"and the Laramie-Fox Hills aquifer. The North-Sout Hydrogeological Cross- Section (Plate 1) submitted by Quantum with their September 18,201 letter report documents this stratigraphy—although it wasn't specifically called out in the cro -section. At the location of Niobrara Energy Park, the upper part of the Larami Formation contains multiple sandstone and siltstone beds with thicknesses ranging up to out 100 feet,but commonly 10 to 40 feet thick, with shale partings up to approximatel 30 feet thick. In test hole Page 2 of 5 50626-MH and oil and gas wells proximal to Niobrara Energy Park,th upper—600 feet of the Laramie Formation is predominantly sandstone and siltstone. The SE has informally termed this section as the"upper Laramie aquifer." Sandstone units within the upper Laramie aquifer are generally discontinuous laterally and vertically, because of the terre trial depositional environment of the Laramie Formation sediments. Water wells drilled nto this aquifer in the Niobrara Energy Park area have static water levels below the top of the upper Laramie aquifer, indicating the aquifer is unconfined. The upper Laramie aquifer is ove lain by the thin eroded southern extent of the White River Formation at Niobrara Energy Park. The upper Laramie aquifer crops out at the surface or subcrops beneath older Quaternary g avels for several miles to the west, south, and southeast. This unit is totally eroded away west to and the mountain front and south toward the Greeley Arch. This unit has not been formally m pped apart from the full Laramie Formation, but its southward extent can be inferred from the pplicant's Plate 1 cross- section to be about 8 to 10 miles south of Niobrara Energy Park. Below the upper Laramie aquifer is a thick section (500- to 800- feet) f Laramie Formation that is dominated by shale. The SEO has informally termed this section as he"Laramie shale interval" for this area. This interval is a thick confining shale over the eeper Laramie-Fox Hills aquifer. The Laramie-Fox Hills aquifer here is similar to the Laramie-Fox Hill in the administrative Denver Basin. It is a confined aquifer at Niobrara Energy Park and wi hin the Cheyenne Basin until its outcrop on the western mountain front and on the Greeley Arc just north of the Cache la Poudre River.' Analytical Model The applicant has limited its nontributary groundwater petition to the per Laramie aquifer as a result of the December 7, 2012 telephone conference. Therefore,the alytical Glover IDS- AWAS model submitted for this aquifer on December 11, 2012 is the1nodel considered here. Modeling was performed based on the assumption that the upper Lar ie aquifer is an unconfined aquifer in the areas surrounding the Niobrara Energy Park arcel. The aquifer crops out at the surface in areas to the south, east and west. The aquifer is o erlain by White River Formation to the north and northeast, which in turn is overlain by the gallala Formation. Available data from water wells in this area indicate that when the up r Laramie aquifer is the perforated zone in water wells, static water level remains below the to of the aquifer. The Glover analytical model was designed to determine depletion to a stream from a well pumping groundwater from the stream's adjacent alluvium. A host of assumptions related to this scenario accompany the model. Use of the Glover model to determin the nontributary nature of aquifers is accepted as a conservative approach by the SEC) and has b n accepted for use in bedrock aquifers.2 Weist, W.L., 1965, Reconnaissance of the ground-water resources in parts of Lari er, Logan, Morgan,Sedgwick, and Weld counties,Colorado: U.S.Geological Survey Water-Supply Paper 1809-L. 2 2 CCR 402-17,Statement of Basis, Purpose,and Specific Statutory Authority,Pro uced Nontributary Ground Water Rules,p. 11-12- Page 3 of 5 Input parameters include aquifer transmissivity(T), specific yield(Sy), d the straight line distance(X) between the pumping well and the point of potential deple ion. In consultation with SEO staff, Quantum utilized an aquifer transmissivity of 2,150 gallons r day per foot(gpd/ft). This was based on a hydraulic conductivity value of 5 gpd/ft2 as define in Weist(1965) and a saturated thickness of 430 ft. For the subject parcel,the Weist referenc contains the closest published hydraulic data for the Laramie Formation. The upper Laram. aquifer's saturated sandstone/siltstone thickness of 430 ft was based on the lithologic log o test hole 50626-MH on the subject property. Specific yield for the unconfined upper Laramie uifer was assigned at L 0.) In the absence of published or site-specific data for this aquifer, t is Sy value is consistent with the similar Laramie-Fox Hills aquifer in the administrative Denve Basin. These model inputs are appropriate for the upper Laramie aquifer in the Cheyenne B sin. Quantum used these hydraulic data to determine a nontributary line at hich distance from the parcel, the annual rate of aquifer depletion (q)would be less than one-tnth of one percent of the annual pumping rate (Q) within a 100-year pumping period (i.e. q/Q <01.001 after 100 years of pumping). The IDS-AWAS model results indicate that groundwater p mping would be nontributary at a distance approximately eight(8) miles from the Niobr a Energy Park parcel. Within the eight-mile distance from the parcel almost all streams are d signated as intermittent on the National Hydrography Dataset. The lone exception is a portion f Lone Tree Creek in sections 20, 21, and 29, TI2 N, R 67 W as it flows south out of Wyomi g, about 6.5 miles northwest of Niobrara Energy Park. In this stream reach,the Brule Cl Member of White River Formation underlies Lone Tree Creek and geologically separates it fro the underlying Laramie Formation. The upper Laramie aquifer is thus hydraulically disconnec d from Lone Tree Creek and its associated alluvium by the Brule Clay Member, Given that (1) Water within the upper Laramie aquifer is disconnected from t* thin alluvium or older gravels associated with Lone Tree Creek and Owl Creek; (2) Lone Tree Creek is hydrogeologically separated from the uppe Laramie aquifer by the Brule Clay Member of the White River Formation in the area j st south of the Colorado- Wyoming border(sections 20,21, and 29,T12 N, R 67 W); (3) Any natural stream or its alluvium further than the analytically odeled eight-mile distance from Niobrara Energy Park will not be depleted more han one-tenth of one percent of the annual pumping rate (Q) within a 100-year pum ng period; therefore, the applicant has adequately demonstrated that groundwater ithdrawn from the upper Laramie aquifer within Niobrara Energy Park will be nontributary. According to the lithologic log provided by the applicant from the test ole(50626-MH)near the well application location (receipt no. 3655537),the aquifer top occurs t approximately 145 feet bgs and the aquifer base occurs at approximately 710 feet bgs,howeve , for well permitting purposes the top and bottom of the allowed producing interval will be etermined on a site- I Weist, W.L., 1965, Reconnaissance of the ground-water resources in parts of Lari r, Logan, Morgan,Sedgwick, and Weld counties,Colorado: U.S.Geological Survey Water-Supply Paper 1809-L. Page 4 of 5 �! specific basis. Further, for the purpose of quantifying the average ann 1 amount of ground water that may be withdrawn, the thickness of sandstoneisiltstone capa le of producing water within the upper Laramie aquifer at this location is estimated to be 430 eet, The specific yield of 0.15 is appropriate for modeling purposes and is conservative with r spect to existing water rights in the determination of whether the ground water underlying the arcel is nontributary. A final calculation of the average annual amount of water that can be wi drawn shall be based on a sandstone/siltstone thickness determined by an analysis of a full geop ysical log of the aquifer interval by the State Engineer's Office4, and a specific yield value deri ed from specific yield data for the upper Laramie aquifer in the Cheyenne Basins. Staff's Initial Determination is that the groundwater in the upper L ramie aquifer underlying Applicant's property in northern Weld County located n Section 19 of Township 11 North, Range 66 West,6`" P.M., is NONTRIBUTAR ,as that term is defined in section 37-90-103(10.5), C.R.S. Respectfully Submitted: _ P,6-e4-4 Q_/' g , 2012. Matthew A. Sares, P.G. Hydrogeological Services Manager Colorado Division of Water Resources ' Rule 8.E.,Statewide Nontributary Ground Water Rules(2 CCR 402-7) ' Rule 8.D.,Statewide Nontributary Ground Water Rules(2 CCR 402-7) Page 5 of 5 EXHIBIT Bruce Barker From: Fred Otis <fotis_nocoattorneys_com@nocoattorneys.onmicrosoft.com> Sent: Monday,January 18, 2016 11:20 AM To: Bruce Barker Cc: Kristi Knowles; 'Harrison Craig (craig@harrisonresource.com)';Tom Parko Jr. Subject: RE: Niobrara Energy Park/Craig Harrison Attachments: permits.pdf; Findings and Memo.pdf Bruce, attached please find attached revised Findings of the State Engineer issued January 6, 2016 approving Niobrara Energy Park, LLC's withdrawal of 695 acre feet of water for 100 years. Since the initial water for Niobrara Energy Park was for commercial exempt wells there would have been only 3 acre feet for the entire project. So, Craig has increased water for the project by twenty three thousand one hundred percent. Not only does there appear to be sufficient water for the proposed uses, the 1/2 acre share of capital stock in the Cache la Poudre Reservoir Company was only intended for possible augmentation, which is no longer needed at all since the 695 acre feet comes from the Upper Laramie Aquifer, which is non-tributary water. Please call me if you have any questions. Fred L. Otis Otis, Bedingfield & Peters, LLC 1812 56th Avenue Greeley, CO 80634 970-330-6700 fotis@nocoattorneys.com www.nocoattornevs.com THIS EMAIL IS CONFIDENTIAL: The information contained in this email or any attachment hereto is confidential. It may also be privileged. If you are not the intended recipient, notify the sender by return email and immediately delete this email. 1 4 tl From: Bruce Barker [mailto:bbarker@co.weld.co.us] , Sent: Tuesday, January 12, 2016 11:53 AM To: Fred Otis <fotis_nocoattorneys_com@nocoattorneys.onmicrosoft.com> Cc: Kristi Knowles <kknowles@nocoattorneys.com>; 'Harrison Craig (craig@harrisonresource.com)' <craig@harrisonresource.com>; Tom Parko Jr. <tparko@co.weld.co.us> Subject: RE: Niobrara Energy Park/Craig Harrison Fred: Thanks. The main question is whether Craig's company has enough water to serve the uses that are proposed for the lots. I know the Board will ask that when we present to them your request to release the half-share. I seem to remember there was some information supplied to answer that question, but cannot recall specifically. Could you send me anything which would provide an answer? Bruce T. Barker, Esq. Weld County Attorney P.O. Box 758 1150 "O" Street Greeley, CO 80632 (970) 356-4000, Ext. 4390 Fax: (970) 352-0242 k r • r p 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 attorney privileged and 2 } 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. From: Fred Otis [mailto:fotis nocoattorneys corn(nocoattorneys.onmicrosoft.com] Sent: Monday, January 04, 2016 3:31 PM To: Bruce Barker<bbarker@co.weld.co.us> Cc: Kristi Knowles <kknowles a,nocoattorneys.com>; 'Harrison Craig (craig@harrisonresource.com)' <craig@harri sonresource.com> Subject: Niobrara Energy Park/Craig Harrison Bruce, attached is a letter that I put in the mail to you today. If you have questions, please call me. Fred Fred L. Otis Otis, Bedingfield & Peters, LLC 1812 56th Avenue Greeley, CO 80634 970-330-6700 fotis@nocoattomeys.com www.nocoattorneys.com THIS EMAIL IS CONFIDENTIAL: The information contained in this email or any attachment hereto is confidential. It may also be privileged. If you are not the intended recipient, notify the sender by return email and immediately delete this email. 3 REVISED FINDINGS OF THE STATE ENGINEER IN THE MATTER OF APPLICATIONS FOR PERMITS TO CONSTRUCT WELLS IN WATER DIVISION NO. 1, WELD COUNTY, COLORADO APPLICANT : NIOBRARA ENERGY PARK LLC AQUIFER: UPPER LARAMIE PERMIT NO.: 76990-F and Additional Wells In compliance with C.R.S. 37-90-137(1) and the Statewide Nontributary Ground Water Rules, Niobrara Energy Park LLC, (hereinafter"applicant") submitted an application for a permit to construct a well. Based on information provided by the applicant and records of the Division of Water Resources, the State Engineer finds as follows: 1. The application was received complete by the State Engineer on June 4, 2012. Additional site-specific information about the aquifer parameters was provided by the applicant. This information was summarized in a memorandum from Matt Sares of the Hydrogeological Services Group dated December 11, 2015. 2. The applicant proposed to construct a well in the SE1/4 of the SW1/4 of Section 19, Township 11 North, Range 66 West, 6th Principal Meridian. The applicant obtained well permit no. 76990-F for this well and well permits for Additional Wells based on the initial calculation of the amount of water available underlying the applicant's land. 3. The wells are located outside the boundaries of a designated ground water basin. 4. The applicant proposes to apply the water withdrawn from the wells to the following beneficial uses: commercial, industrial and residential uses. 5. The proposed maximum pumping rate of the well with permit no. 76990-F is 200 gallons per minute, and the requested average annual amount of ground water to be withdrawn is the maximum amount determined to be available. 6. The applicant is the owner of the land on which the well will be constructed. 7. The wells were constructed in the Upper Laramie aquifer ("aquifer"). At the proposed well location for permit no. 76990-F, the aquifer is located approximately 145 feet to 710 feet below land surface. 8. The location of the wells is more than 600 feet from any existing well, not owned by the Applicant, completed in the aquifer. 9. According to a sworn statement and a survey provided by the applicant, the applicant owns, or has consent to withdraw ground water underlying 644.14 acres of land described as Section 19, Township 11 North, Range 66 West of the 61h P.M. 10. A Petition for a determination of the nontributary nature of ground water underlying the claimed property ("Petition") was submitted by Niobrara Energy Park LLC, in accordance with Division of Water Resources Policy 2010-4 and Rule 5 of the Statewide Nontributary Ground Water Rules, 2 CCR 402-7, effective March 2, 1986. I Applicant: Niobrara Energy Park LLC Page 2 Aquifer: Upper Laramie Permit no.: 76990-F and Additional Wells 11. As required by Policy 2010-4 the applicant provided notice of the Petition to all parties on the SWSP Notification List and Produced Nontributary Ground Water Notification List, for Division 1. That notice was sent on June 1, 2012. In addition, the Applicant published once each week for two successive weeks a legal notice in The Greeley Tribune, a public daily newspaper of general circulation as defined by law, which is printed and published in the City of Greeley, County of Weld and State of Colorado. Those publications occurred on June 22nd and June 25th, 2012. The SEO did not receive any comments during the 30 day comment period. 12. Staff of Hydrogeologic Services of the Division of Water Resources ("Staff') reviewed the Petition and supporting documentation. On December 28, 2012 the Staff issued the Initial Determination which found that the aquifer underlying the Applicant's property in northern Weld County located in Section 19 of Township 11 North, Range 66 West, 6th P.M. ("Applicant's Property"), is Nontributary, as that term is defined in section 37-90-103(10.5), C.R.S. 13. On December 28, 2012, the State Engineer issued the Final Decision of the State Engineer which adopted the Initial Determination. Based on the Final Decision, withdrawal of ground water from the aquifer underlying the Applicant's property, will not, within one hundred years of continuous withdrawal, deplete the flow of a natural stream at an annual rate greater than one-tenth of one percent of the annual rate of withdrawal and therefore the ground water is nontributary ground water as defined in C.R.S. 37-90-103(10.5). 14. In considering whether the requested permit shall be approved the provisions of C.R.S. 37-90-137(4) shall apply. Withdrawals shall be allowed on the basis of an aquifer's life of 100 years, C.R.S. 37-90-137(4)(b)(l). 15. The quantity of water in the aquifer, exclusive of artificial recharge, determined to be available underlying the 644.14 acres of land described as Section 19, Township 11 North, Range 66 West, 6` P.M., is 69,502.7 acre-feet. This final quantification was based on site specific information summarized in the December 11, 2015 memorandum: a. The average specific yield of the saturated aquifer materials underlying the land under consideration is 26 percent. b. The average thickness of the saturated aquifer materials underlying the land under consideration is 415 feet. 16. A review of the records in the State Engineer's office has not disclosed that there are any existing wells or other water rights claiming or diverting ground water from the aquifer underlying the land claimed by the applicant. Based on the above, the State Engineer finds that there is water available for withdrawal by the wells and no material injury to vested water rights would result from the issuance of the requested permits subject to the following conditions: TIMM JIMIMMINIMIMINEMW 4v ' Ni- Applicant: Niobrara Energy Park LLC Page 3 Aquifer: Upper Laramie Permit no.: 76990-F and Additional Wells a. The final allowed average annual amount of water to be withdrawn from the aquifer by the wells shall not exceed 695.0 acre-feet' (the quantity of water which is considered available divided by the 100 year aquifer life). b. The wells shall be located no more than 200 feet from the locations specified on the permits. c. The wells must be constructed to fully penetrate the aquifer. The entire length of the open borehole shall be geophysically surveyed (using at a minimum gamma, spontaneous potential, shallow and deep resistivity, density and neutron porosity tools) prior to casing and copies of the geophysical logs submitted to the State Engineer's Office. d. The maximum pumping rate of the well with permit no. 76990-F shall not exceed 200 gallons per minute. e. A totalizing flow meter must be installed on the wells and maintained in good working order. Permanent records of all diversions must be maintained by the wells' owner (recorded at least annually) and submitted to the Division Engineer upon request. f. Production is limited to the Upper Laramie aquifer. The wells must be constructed with plain, non-perforated casing properly grouted so as to prevent intermingling of water between aquifers. Prior to casing the wells the Applicant must coordinate with the Hydrogeological Services Group of the State Engineer's Office to determine the actual aquifer interval for the aquifer. g. The owner shall mark the wells in a conspicuous place with appropriate well permit numbers, name of the aquifer, and court case numbers. He shall take necessary means and precautions to preserve these markings. Dated this 6'h day of January, 2016. i) 444— Dick Wolfe, P.E. Director/State Engineer itBy: -CW161,//vg racy Kosl Water-Resdurce Engineer Prepared by: TLK Form:0546(o) 1 In accordance with Rule 8A of the Statewide Nontributary Ground Water Rules, the allowed annual amount of withdrawal may exceed the allowed average annual amount of withdrawal as long as the total volume of water withdrawn from the wells does not exceed the product of the number of years since the dates of issuance of the well permits times the allowed average annual amount of withdrawal. That calculation may be based on the original well permit dates and the final annual amount of withdrawal documented herein. STATE OF COLORADO DIVISION OF WATER RESOURCES 1313 Sherman St., Rm. 818 Denver, CO 80203 (303) 866-3581 FAX. (303) 866-3589 INTEROFFICE MEMORANDUM TO: Tracy Kosloff FROM: Matt Sares SUBJECT: NIOBRARA ENERGY PARK- DETERMINATION OF THE UPPER LARAMIE AQUIFER PROPERTIES AND NONTRIBUTARY GROUNDWATER ALLOCATION BASED ON SITE-SPECIFIC DATA PER THE FINAL DECISION'S PROVISION REGARDING THE FINAL CALCULATION OF THE ALLOWED AVERAGE ANNUAL WITHDRAWAL DATE: December 11, 2015 In accordance with the State Engineer's Policy 2010-4, the applicant, Niobrara Energy Park LLC, received a Final Decision from the State Engineer on December 28, 2012 affirming the nontributary nature of groundwater within the Upper Laramie aquifer underlying land located at Section 19, Township 11 North, Range 66 West. The Final Decision stated that the State Engineer would complete a final calculation of the average annual amount of water that can be withdrawn based on additional site-specific data, including geophysical log and specific yield data. Subsequently, the applicant provided new site-specific data. The new data are reviewed in this memorandum and the amount of nontributary groundwater available for appropriation is a calculated based on the data. 1. Specific Yield Division of Water Resources Hydrogeotogical Services Branch staff determined overall specific yield (Sy) for aquifer materials within the entire aquifer by the following methods: • Sandstone - Sandstone intervals were assigned a Sy based on the average of three Sy values obtained from three intact sidewall cores composed of sandstone from test hole MH- 53079, located within the land parcel of Niobrara Energy Park. Daniel B. Stephens Et Associates, Inc. performed the laboratory testing of the sidewall cores per ASTM standard test methods 07263, D2216, 06836, and Relative Humidity (Salt Solution) Methods in professional literature (Campbell and Gee, 1986; Karathanasis and Hajek, 1982) as recorded in their report of September 3, 2015 (attached). The Sy values obtained at the tension of -671 ft of water, which approximates the aquifer thickness, were as follows: Core Depth (bgs) Specific Yield 3 706 ft 34.1% 4 604 ft 28.0% 5 524 ft 33.8% Specific Yield (arith. mean) 32.0% Based on the geophysical log for MH-53079, a resistivity log response greater than 17 ohm-m was assigned as sandstone lithology. Therefore, sandstone lithology as identified on the resistivity geophysical log was assigned a Sy=32%. • Sittstone - Specific yield for sittstone was assigned primarily based on literature values from U.S. Geological Survey (USGS) studies from across the western U.S. that performed and reported laboratory tests of sittstone cores for hydraulic properties. Morris and Johnson (1967) show the results of 13 sittstone analyses, which resulted in an arithmetic mean of Sy=12%.1 Based on resistivity log response in test well MH-53079, tog response of 11-17 ohm-m was assigned as sittstone lithology. Core 4 at 604 ft depth had a corresponding resistivity response of 17.13 ohm-m, which is on the cusp between sandstone and sittstone on the resistivity log response. Therefore, the Sy of 28% for Core 4 was added to the USGS Sy dataset for siltstone to allow for the possibility the core represented a highly resistive sittstone and to bring a site-specific data point into the siltstone specific yield data set. The resulting specific yield for siltstone lithology, based on the arithmetic mean of 14 samples, was Sy=13%. The final overall Sy for the Upper Laramie aquifer was determined by identifying the distribution of aquifer materials between sandstone and siltstone and applying a weighted percentage of each aquifer lithology Sy to the overall aquifer Sy. Rounding to whole numbers, the aquifer materials consist of 31% siltstone and 69% sandstone. Applying these percentages to the Sy for each tithology, results in an overall Upper Laramie aquifer Sy of 26% [(31% x 13%)+(69% x 32%)=26%]. As part of the discussion to ascertain the Sy of the Upper Laramie aquifer at Niobrara Energy Park, the applicant attempted to construct a correlation between resistivity log data and specific yield. A curve was drawn to fit through three points of known data based on the resistivity log and laboratory core Sy data. An empirical relationship between lithologic resistivity data and Sy cannot be established with only three data points — two core data points and an assumed specific yield of zero at 11 ohm-m resistivity. (Data point 1: sandstone core samples 3 and 5 have very nearly the same specific yield and resistivity log values and give essentially one data point. Data point 2: Core sample 4. Data point 3: Shale baseline of 11 ohm-m assumed to be 0% Sy.) Moreover, the assumption that a correlation can be made between resistivity and specific yield is tenuous. In a professional paper on estimating specific yield from geophysical togs, S.G. Robson states, "Logs commonly used in the water-well industry, such as spontaneous potential, natural gamma, and resistivity have little potential for use in estimating specific yield."2 [emphasis added] The resistivity tog is very good at distinguishing between clastic sediments such as sand, siltstone, and shale, but this does not correlate to hydraulic parameters such as porosity or specific yield. Therefore, the attempted correlation is not considered in the estimation of specific yield. 1 ' See Morris and Johnston(1967), p.D19. 2 See Robson(1993), p. 13. 2. Saturated Thickness of Aquifer Material The saturated thickness of aquifer material (sandstone and siltstone) within the Upper Laramie aquifer in Niobrara Energy Park test hole MH-53079 was established as 274 ft using the inflection point method to distinguish aquifer lithology from shale lithotogy. Unfortunately, the location for test hole MH-53079 happened to be at a place where the Upper Laramie aquifer is anomalously thin due to a channel at the base of the overlying White River Group eroding into the top of the Laramie Formation. For this reason, geophysical logs from wells near the Niobrara Energy Park parcel were also considered in determining the saturated thickness of aquifer material within the parcel. A combination of geophysical log data from nearby test hole 53241-MN (Sec , T11N, R W) and Rainbow Resource Inc. oil and gas well, State Lone Tree #1-14 (API# 123-07393; SE-SE Sec 14, T11 N, R67W) were used to provide another data point for the thickness of aquifer materials in the Niobrara Energy Park parcel. Test hole 53241-MH geophysical log data were used for the upper part of the Upper Laramie aquifer while the geophysical log for oil and gas welt State Lone Tree #1 was used for the lower part of the Upper Laramie aquifer. The combined data for these wells indicates saturated aquifer material thickness of 440 feet in the Upper Laramie aquifer. Based on staff review of multiple geophysical logs penetrating through the White River Group and Upper Laramie aquifer, only about 15% of the wells in this area exhibited a thin Upper Laramie aquifer due to channel erosion at the base of the overlying White River Group. Therefore, the Upper Laramie saturated aquifer thickness for Niobrara Energy Park was determined by appropriately weighting the aquifer thickness from the different thicknesses identified in geophysical logs. The weighted average saturated thickness of the Upper Laramie aquifer materials (sandstone and siltstone) in Niobrara Energy Park is estimated at 415 feet [(440 ft x85%)+(274 ftx15%)=415 feet]. 3. Surface Area of the Niobrara Energy Park Parcel The Niobrara Energy Park parcel includes the entirety of Section 19, Township 11 North, Range 66 West, which is located in Weld County. The applicant provided land survey data that supports a land area of 644.14 acres for this section of land (see attached). 4. Determination of Nontributary Groundwater Available for Withdrawal Based on New Site- Specific Data Submitted by the Applicant The following determination is made based on the data submitted for reassessment of the nontributary groundwater available in the Upper Laramie Aquifer underlying the Niobrara Energy Park parcel. The aquifer parameters pertinent to calculation of the volume of groundwater available for appropriation are as follow: • Specific yield = 26% • Saturated thickness of aquifer material = 415 feet • Surface area = 644.14 acres (based on survey data) Therefore, the total volume of nontributary groundwater hydrogeologicalty available for withdrawal from the Niobrara Energy Park parcel is 69,502.7 acre-ft [415 ft x 26% x 644.14 = 69,502.7 ac-ft]. Average annual withdrawal is limited to 695.0 ac-ft to provide a 100-year aquifer life for the Upper Laramie aquifer under this parcel. References: Morris, D.A. and Johnson, A.I., 1967, Summary of hydrologic and physical properties of rock and soil material, as analyzed by the Hydrologic Laboratory of the U.S. Geological Survey 1948- 1960, U.S. Geological Survey Water-Supply Paper 1839-D Robson, S.G., 1993, Techniques for Estimating Specific Yield and Specific Retention from Grain- Size Data and Geophysical Logs from Clastic Bedrock Aquifers, U.S. Geological Survey Water Resources Investigations Report 93-4198, 440 Quantum Water & Environment 1746 Cole Boulevard, Suite 340 Lakewood, Colorado 80401 (720) 524-4294 QUANTUM WATER&ENVIRONMENT September 3, 2015 Mr. Matt Sares Division of Water Resources State Engineers Office 1313 Sherman Street, Room 818 Denver, CO 80203 RE: Specific Yield Analysis for Niobrara Energy Park, Groundwater Allocation Dear Matt: This letter transmits the specific yield analysis that was conducted on sidewall samples obtained from Test Well Permit number 53079-MH for Niobrara Energy Park. These samples were analyzed by the procedure that was agreed to according to our discussions of our meeting of July 7, 2015. During our discussions you and Kevin Donegan had expressed concerns regarding the sample preparation on laboratory analyses conducted on sidewall samples 6 and 7 obtained from the same borehole; and that the potential that this may have caused the samples to be no longer considered undisturbed. Based on those discussions,we agreed on a procedure that was outlined in my letter to you dated July 17, 2015, and with further clarification from you in an email of July 17, 2015. Attached are the results from sidewall cores that were analyzed for specific yield by the agreed to procedure by Daniel B. Stephens &Associates, Inc. The samples that were analyzed were sidewall cores 3,4 and 5 from intervals 706 ft, 604 ft and 524 ft respectively. The laboratory analysis of the average specific yield of these samples is 29.6 (%cm3/cm3). Based on this new information,Quantum Water& Environment is requesting that the original specific yield of 15 per the December 28, 2012 Determination for Niobrara Energy Park be amended to 30%. Please let me know if you have any questions or comments. Sincerely, QUANTUM WATER & ENVIRONMENT Theresa Jehn-Dellaport, P.G. President Attachment www.quantumwaterco.com I Laboratory Report for Quantum Water Consulting Niobrara Energy Park Samples 3, 4, 5 September 1, 2015 �P a sd.' 6. Daniel B. Stephens & Associates, Inc. 4400 Alameda Blvd. NE, Suite C •Albuquerque, New Mexico 87113 a. x September 1, 2015 Theresa Jehn-Dellaport Quantum Water Consulting ` „ 1746 Cole Blvd., Suite 340 A0 Lakewood, CO 80401 x '146 (720) 524-4294 Re: DBS&A Laboratory Report for the Quantum Water Consulting Niobrara Energy Park Project Dear Ms. Jehn-Dellaport: - ` - '. R Enclosed is the report for the Quantum Water Consulting Niobrara Energy Park project samples 3, �. ��` � - 4, and 5. Please review this report and provide any comments as samples will be held for a `:, maximum of 30 days. After 30 days samples will be returned or disposed of in an appropriate 8 , manner. All testing results were evaluated subjectively for consistency and reasonableness, and the results ' appear to be reasonably representative of the material tested. However,DBS&A does not assume any responsibility for interpretations or analyses based on the data enclosed, nor can we guarantee A: that these data are fully representative of the undisturbed materials at the field site. We recommend kit,tfil,i74A1ZtAm ,°11:, that careful evaluation of these laboratory results be made for your particular application. The testing utilized to generate the enclosed report employs methods that are standard for the industry. The results do not constitute a professional opinion by DBS&A, nor can the results affect '115421-404_;, t any professional or expert opinions rendered with respect thereto by DBS&A. You have ih a acknowledged that all the testing undertaken by us, and the report provided, constitutes mere test .4' results using standardized methods, and cannot be used to disqualify DBS&A from rendering any 4 H ' professional or expert opinion, having waived any claim of conflict of interest by DBS&A. °,,,.0,4,',,,,',,,t-,-;' , 1_ ,` We are pleased to provide this service to Quantum Water Consulting and look forward to future laboratory testing on other projects. If you have any questions about the enclosed data,please do I' . not hesitate to call. ,,HP ,l .' Sincerely, ' DANIEL B. STEPHENS &ASSOCIATES,INC. ' SOIL TESTING& RESEARCH LABORATORY Joleen Hines Laboratory Supervising Manager Enclosure Daniel B.Stephens&Associates,Inc. Soil Testing & Research Laboratory 4400 Alameda Blvd. NE, Suite C 505-889-7752 Albuquerque, NM 87113 FAX 505-889-0258 Summaries 3 o V o U U ca o o O E 0 U rn a`) �_ - E o - w J Q T a _ 4 a a) o N 0 O > T Q co 0 I1 2 T U• 0 up N O @ ._._ -o • .._ __.. __.. X C O m 0 T U rs m .- 7 E E (13 Y- -"- ---' ---- 2 S X X X o as o O a 0 ..-s c m CL I 2 o II c a 2 2 ai 2 Nw aLL co = i•.-. N o i a H Eo O 2 ,- x X x o g c - _ ____ ____ ____ N _N Q II ta. (C 0 - c d E > ° o E C 0 .E g ,„) V > m 0 > Z d X X X L II .0 S a) d O U 2 " D y (SL 2 c N N II 0_ y Il . T L (D .= a) 'ea' 0 m ( 0 2 a)i u- n ,n '5 -Q = u_ m II f° aI 2 0 ..- ---- ----...- E S Cl_ o, a� - E h u u. 2 2 In fi 0 2 n ` 4-' II N- N > - > 2 , rum a L a) D. @ .a) X X' X °C O: II U in o --- ---- ---- ---- O 11 2 — a C7 )< >< x U >> U Cn N .En 2 > II E C II 0 CC o (V 7 o - 2 0 d E y oT E = m m a) > n ≥ a fi @ Z c a E m cn C o a� 5 0 a ° U 2 W O c J E 0 II II II II Il o II 2 U mu) II eye° -te (..DU 2 W0 IL N n e n Co N.,0 6tt IIP e ee � a/ Om P tl 0 .a pp 'a o0i Daniel B. Stephens & Associates, Inc. e,ro o r' Notes Sample Receipt: Two samples were received on July 16, 2015, and one sample was received on July 17, 2015. Each sample was wrapped in plastic and foil and contained in a sealed glass jar. In both cases the jars were packaged in a box with bubble wrap, and were received in good order. Sample Preparation and Testing Notes: An intact sub-sample was obtained from each sample by gently advancing a small (-0.75" 4 diameter x -0.8" length) test ring with a beveled edge into each of the intact samples. The samples were wetted in standing water overnight. The samples were then allowed to equilibrate in a pressure chamber set to a tension of 10 feet of water, followed by equilibration in a pressure chamber set at a tension of 365 feet of water. The samples were then allowed to equilibrate in a sealed chamber with the tension set at 671 feet of water, using a 0.4216 molality NaCI salt solution. The three measurement points are presented graphically, and specific yield results are presented for each sample at each of the measured tensions. Porosity calculations are based on the use of an assumed particle density value of 2.65 5 m o c0 ) cam) o o v o -a- Ts d U c "5 .> co m C E co c 'diN -2 � � e- Y '.--C7)�M _ m c U `� l!') 3' a' N -- '- y N a a) O Y 'y O M m p a cs C M i a = E I I CI .a U ) O > C co a) O U O a) rn � c •> o .2 c3 a) as o L \/ N U C 4) a L �C VQ/ - O N a`s U Z = 2 E E CO e-- r--: m U CO CO CO v tu �+ O O Q U N ✓ E U 0 y = to a N`+ — h Q ti N- r.-- 7 E > o N N N \ N (� Ti >; E d N a CL) C/) N co E m O a c as 0 Q. O N Q EZ f- II II a , �a 4'1.i. Z I O 64 / 0O 4° �P 00 e••cIIIIIPo,,0 Daniel B. Stephens & Associates, Inc. • r a° Summary of Specific Yield Moisture Total Content at Specific Sample Tension Tension Porosity Specified Tension Yield' Number (-cm of water) (-feet of water) (% cm3/cm3) (% cm3/cm3) (% cm3/cm3) 3 306 10 46.0 15.3 30.7 3 11116 365 46.0 12.6 33.4 3 20439 671 46.0 11.9 34.1 4 306 10 42.6 20.7 21.9 4 11116 365 42.6 15.2 27.4 4 20439 671 42.6 14.6 28.0 5 306 10 46.9 22.5 24.4 4 5 11116 365 46.9 13.7 33.1 5 20439 671 46.9 13.0 33.8 1 Specific Yield is defined as the difference between the saturated moisture content (total porosity)and the moisture content of the sample at the specified tension. I 1 11 Ill 4 1 41 7 1 Initial Properties 8 0) a cu 0- -' o CD C) o 0 .. o cv d 0 • .N M m e U CD CD N. a-- -3 M _ aN W T r N- U) o0 C a) CI Y 'y M U CO O • c) I I I 4 -a U 4- a) > o c ca -o 4v, v E O c4 a) v 0 0 m+' L T3 E - I I I O _ c a) d tap rn oME =' • U a) ao Ln 7 ~ O m - = U M M M - a) O v t. ≥ > o c co a) E a E x O y = cn , Cl) Q m N- N- N- 7 °� 5 c N NO N a 0 O d E N 4 O y c c, co E a) t,' co LOU)76 E c as C Q' +a' N Q E a3 L Z i- 0) ° u C� Tp �` �� Q I 0C oT z e ., dt. r @o ore O o\� O �a\ tiJy Daniel B. Stephens & Associates, Inc. e ,iao` Data for Initial Moisture Content, Bulk Density, Porosity, and Percent Saturation Job Name: Quantum Water Consulting Job Number: NM15.0087.00 Sample Number: 3 Depth (ft): Outcrop Client: Niobrara Energy Park, LLC. As Received Remolded Test Date: 17-Jul-15 Field weight*of sample (g): 21.68 Tare weight, ring (g): 8.61 Tare weight, pan/plate (g): 0.00 Tare weight, other (g): 0.00 Dry weight of sample (g): 10.39 Sample volume (cm3): 7.26 Assumed particle density (g/cm3): 2.65 Gravimetric Moisture Content (% g/g): 25.7 Volumetric Moisture Content (% vol): 36.8 Dry bulk density (g/cm3): 1.43 Wet bulk density (g/cm3): 1.80 Calculated Porosity (%vol): 46.0 Percent Saturation: 80.0 Laboratory analysis by: D. O'Dowd Data entered by: J. Hines Checked by: C. Krous Comments: Weight including tares NA = Not analyzed = This sample was not remolded 10 P ems. b o� O� Q ^a0 oaD4 Daniel B. Stephens & Associates, Inc. Data for Initial Moisture Content, Bulk Density, Porosity, and Percent Saturation Job Name: Quantum Water Consulting Job Number: NM15.0087.00 Sample Number: 4 Depth (ft): Outcrop Client: Niobrara Energy Park, LLC. As Received Remolded Test Date: 17-Jul-15 Field weight*of sample (g): 21.48 Tare weight, ring (g): 8.36 Tare weight, pan/plate (g): 0.00 Tare weight, other (g): 0.00 Dry weight of sample (g): 10.87 Sample volume (cm3): 7.15 Assumed particle density (g/cm3): 2.65 Gravimetric Moisture Content (% g/g): 20.7 Volumetric Moisture Content (% vol): 31.5 Dry bulk density (g/cm3): 1.52 Wet bulk density (g/cm3): 1.84 Calculated Porosity (%vol): 42.6 Percent Saturation: 74.0 Laboratory analysis by: D. O'Dowd Data entered by: J. Hines Checked by: C. Krous Comments: *Weight including tares NA = Not analyzed = This sample was not remolded 11 -dow Daniel B. Stephens & Associates, Inc. Data for Initial Moisture Content, Bulk Density, Porosity, and Percent Saturation Job Name: Quantum Water Consulting Job Number. NM15.0087.00 Sample Number: 5 Depth (ft): Outcrop Client: Niobrara Energy Park, LLC. As Received Remolded Test Date: 17-Jul-15 Field weight*of sample (g): 20.51 Tare weight, ring (g): 9.11 Tare weight, pan/plate (g): 0.00 Tare weight, other (g): 0.00 Dry weight of sample (g): 9.01 Sample volume (cm3): 6.40 Assumed particle density (g/cm3): 2.65 Gravimetric Moisture Content (% g/g): 26.7 Volumetric Moisture Content (% vol): 37.5 Dry bulk density (g/cm3): 1.41 Wet bulk density (g/cm3): 1.78 Calculated Porosity (% vol): 46.9 Percent Saturation: 80.1 Laboratory analysis by: D. O'Dowd Data entered by: J. Hines Checked by: C. Krous Comments: *Weight including tares NA = Not analyzed = This sample was not remolded 12 Moisture Retention Characteristics 13 ftP a'o, amp Daniel B. Stephens & Associates, Inc. Notes Sample Receipt: Two samples were received on July 16, 2015, and one sample was received on July 17, 2015. Each sample was wrapped in plastic and foil and contained in a sealed glass jar. In both cases the jars were packaged in a box with bubble wrap, and were received in good order. Sample Preparation and Testing Notes: An intact sub-sample was obtained from each sample by gently advancing a small (-0.75" diameter x -0.8" length) test ring with a beveled edge into each of the intact samples. The samples were wetted in standing water overnight. The samples were then allowed to equilibrate in a pressure chamber set to a tension of 10 feet of water, followed by equilibration in a pressure chamber set at a tension of 365 feet of water. The samples were then allowed to equilibrate in a sealed chamber with the tension set at 671 feet of water, using a 0.4216 molality NaCI salt solution. The three measurement points are presented graphically, and specific yield results are presented for each sample at each of the measured tensions. Porosity calculations are based on the use of an assumed particle density value of 2.65 14 •°g,--- -'. No o ��� \,a,, .✓', Daniel B. Stephens & Associates, Inc. Moisture Retention Data Job Name: Quantum Water Consulting Dry wt. of sample (g): 10.39 Job Number: NM15.0087.00 Tare wt., ring (g): 8.61 Sample Number: 3 Tare wt., screen &clamp (g): 0.00 Depth (ft): Outcrop Initial sample volume (cm): 7.26 Client: Niobrara Energy Park, LLC. Initial dry bulk density (g/cm): 1.43 Assumed particle density (g/cm'): 2.65 Initial calculated total porosity (%): 46.00 Matric Moisture Weight* Potential Contentt Date Time (g) (-cm water) (°/0 vol) Pressure plate: 27-Jul-15 9:15 20.11 306 15.30 13-Aug-15 9:00 19.92 11116 12.63 Salt solution, Rh: 19-Aug-15 8:30 19.86 20439 11.86 Volume Adjusted Data' Adjusted Matric Adjusted %Volume Adjusted Calculated Potential Volume Change2 Density Porosity (-cm water) (cm) (%) (g/cm3) (0/0) Pressure plate: 306 --- --- --- --- 11116 --- --- --- --- Salt solution, Rh: 20439 --- --- --- --- Comments: 1 Applicable if the sample experienced volume changes during testing. Volume Adjusted'values represent each of the volume change measurements obtained after saturated hydraulic conductivity testing and throughout hanging column/pressure plate testing. "---"indicates no volume changes occurred. 2 Represents percent volume change from original sample volume. A'+'denotes measured sample swelling,a-'denotes measured sample settling,and'---'denotes no volume change occurred. Weight including tares t Assumed density of water is 1.0 g/cm3 xt Volume adjustments are applicable at this matric potential(see comment#1). Changes in volume,if applicable,are estimated based on '1 obtainable measurements of changes in sample length and diameter. Technician Notes: 0 Laboratory analysis by: D. O'Dowd Data entered by: J. Hines 4 Checked by: C. Krous II ill 15 Daniel B. Stephens & Associates, Inc. Predicted Water Retention Curve and Data Points Sample Number: 3 1,000,000 100,000 = ♦Pressure plate xSalt Solution, Rh x 11.9, 20439 10,000 =- • 12.6, 11116 •Total Porosity — L cc 1,000 _ E _ 9 - -p - • 15.3, 306 c• a> - 2 L 100 _ N N a 10 _ 1 _ 0 ■ 0 10 20 30 40 50 60 Moisture Content r/o,cm3/crn3) 16 0p 4\r0, Daniel B. Stephens & Associates, Inc. 'tee 46 • c Predicted Water Retention Curve and Data Points Sample Number: 3 1,000,000 _ 100,000 _ ♦Pressure plate xSalt Solution, Rh •Total Porosity 10,000 _ L i-. co 1,000 _ $ X 11.9, 671 ♦ 12.6, 365 cc 2 - d z 100 _ N - a) - L a 10 _ ♦ 15.3, 10 1 0 , , ■ , , , 0 10 20 30 40 50 60 Moisture Content (%,cm3/cm3) 17 e?9\•\ Mme. Daniel B. Step/yens & Associates, Inc. Moisture Retention Data Job Name: Quantum Water Consulting Dry wt. of sample (g): 10.87 Job Number. NM15.0087.00 Tare wt., ring (g): 8.36 Sample Number: 4 Tare wt., screen &clamp (g): 0.00 Depth (ft): Outcrop Initial sample volume (cm3): 7.15 Client: Niobrara Energy Park, LLC. Initial dry bulk density (g/cm'): 1.52 Assumed particle density (g/cm'): 2.65 Initial calculated total porosity (%): 42.61 Matric Moisture Weight* Potential Contentt Date Time (g) (-cm water) (% vol) Pressure plate: 27-Jul-15 9:15 20.71 306 20.71 13-Aug-15 9:00 20.32 11116 15.25 Salt solution, Rh: 19-Aug-15 8:30 20.28 20439 14.64 Volume Adiusted Data' Adjusted Matric Adjusted %Volume Adjusted Calculated Potential Volume Change 2 Density Porosity (-cm water) (cm3) (0/0) (g/cm3) (%) Pressure plate: 306 - --- --- - 11116 - - - - Salt solution, Rh: 20439 --- - - Comments: I Applicable if the sample experienced volume changes during testing. 'Volume Adjusted'values represent each of the volume change measurements obtained after saturated hydraulic conductivity testing and throughout hanging column/pressure plate testing. "---"indicates no volume changes occurred. 2 Represents percent volume change from original sample volume. A'+'denotes measured sample swelling,a'-'denotes measured sample settling,and'---'denotes no volume change occurred. * Weight including tares t Assumed density of water is 1.0 g/cm3 tt Volume adjustments are applicable at this matric potential(see comment#1). Changes in volume,if applicable,are estimated based on obtainable measurements of changes in sample length and diameter. Technician Notes: Laboratory analysis by: D. O'Dowd Data entered by: J. Hines Checked by: C. Krous 18 IMP 0,04.4 Daniel B. Stephens & Associates, Inc. Predicted Water Retention Curve and Data Points Sample Number: 4 1,000,000 100,000 _ ♦Pressure plate xSalt Solution, Rh x 14.6, 20439 10,000 _ ___A_ 15.2, 11116 _ ■Total Porosity co 1,000 _ E _ - - ♦ 20.7, 306 as a) 2 100 U) - U) - L a 10 _ 1 _ 0 ■ 0 10 20 30 40 50 60 Moisture Content C/0,cm3/cm3) 19 O y'o Daniel B. Stephens & Associates, Inc. S Predicted Water Retention Curve and Data Points Sample Number: 4 1,000,000 100,000 ♦Pressure plate x Salt Solution, Rh 10,000 _ •Total Porosity a) - ns 1,000 _ x 14.6, 671 ♦ 15.2, 365 a� _ - a) 100 m - L a 10 _ • 20.7, 10 1 0 • 0 10 20 30 40 50 60 Moisture Content (%,cm3/cm3) 20 httP O°. 's,\ a' Daniel B. Stephens & Associates, Inc. Moisture Retention Data Job Name: Quantum Water Consulting Dry wt. of sample (g): 9.01 Job Number: NM15.0087.00 Tare wt., ring (g): 9.11 Sample Number: 5 Tare wt., screen &clamp (g): 0.00 Depth (ft): Outcrop Initial sample volume (cm): 6.40 Client: Niobrara Energy Park, LLC. Initial dry bulk density (g/cm'): 1.41 Assumed particle density (g/cm): 2.65 Initial calculated total porosity (%): 46.87 Matric Moisture Weight* Potential Contentt Date Time (g) (-cm water) (% vol) Pressure plate: 27-Jul-15 9:15 19.55 306 22.47 13-Aug-15 9:00 18.99 11116 13.73 Salt solution, Rh: 19-Auq-15 8:30 18.95 20439 13.02 Volume Adjusted Data' Adjusted Matric Adjusted %Volume Adjusted Calculated Potential Volume Change 2 Density Porosity (-cm water) (cm3) (%) (g/cm3) (%) Pressure plate: 306 - - - -- - 11116 - - - - Salt solution, Rh: 20439 - Comments: 1 Applicable if the sample experienced volume changes during testing. Volume Adjusted'values represent each of the volume change measurements obtained after saturated hydraulic conductivity testing and throughout hanging column/pressure plate testing. "---"indicates no volume changes occurred. 2 Represents percent volume change from original sample volume. A'+'denotes measured sample swelling,a'-'denotes measured sample settling,and'---'denotes no volume change occurred. * Weight including tares i Assumed density of water is 1.0 g/cm3 tt Volume adjustments are applicable at this matric potential(see comment#1). Changes in volume,if applicable,are estimated based on obtainable measurements of changes in sample length and diameter. Technician Notes: I Laboratory analysis by: D. O'Dowd Data entered by: J. Hines Checked by: C. Krous 21 11 v,P 0� O 1.10P ' Daniel B. Stephens & Associates, Inc. ra • Predicted Water Retention Curve and Data Points Sample Number: 5 1,000,000 100,000 _ ♦Pressure plate xSalt Solution, Rh x 13.0, 20439 10,000 _ • 13.7, 11116 •Total Porosity w - 3 1,000 _ E _ •D - • 22.5, 306 a) - 2 a) 100 _ N N a 10 _ 1 _ 0 10 20 30 40 50 60 Moisture Content (%,cm3/cm3) 22 • Daniel B. Stephens & Associates, Inc. Predicted Water Retention Curve and Data Points Sample Number: 5 1,000,000 100,000 _ - ♦Pressure plate xSalt Solution, Rh 10,000 - •Total Porosity L a) co 1,000 _ $ = x 13.0, 671 ♦ 13.7, 365 co 13 100 _ co a) a 10 _ A 22.5, 10 1 _ 0 , , , 0 10 20 30 40 50 60 Moisture Content r/o,cm3/cm3) 23 Laboratory Tests and Methods 24 4>°6'. a'a'•a 'a Daniel B. Stephens & Associates, Inc. o ri Tests and Methods Dry Bulk Density: ASTM D7263 Moisture Content: ASTM D7263, ASTM D2216 Calculated Porosity: ASTM D7263 Pressure Plate Method: ASTM D6836 (modified apparatus) Relative Humidity(Salt Campbell, G. and G. Gee. 1986. Water Potential: Miscellaneous Methods. Chp. 25, pp. Solution) Method: 631-632, in A. Klute (ed.), Methods of Soil Analysis. Part 1.American Society of Agronomy, Madison, WI; Karathanasis & Hajek. 1982. Quantitative Evaluation of Water Adsorption on Soil Clays. 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Aii„ _, f' yip, vgS s a 4g ,.x ,E r, 8Fa y Il&II e ` ''a, � y a v $ $ 9s $$gyp n e 6tl zi.iitil ; ! : g�v rP ^$ y E s rxy by I g g§Ib b$>@ 7$@ er; ;RI: -, r e'+. �mi0.77 a sr a &g pgra 3 ¢"—i.�$$n bgeq x-.eEa IV ': a x s ' "a@ f l`;,4 a i gy*"e �$ <!niff ;:, gii s=i 9il ! n 3l -10S ryg?z .� . .� g@x° _ eVIE.W rSex S ♦ - Form No. OFFICE OF THE STATE ENGINEER GWS-25 COLORADO DIVISION OF WATER RESOURCES 818 Centennial Bldg.,1313 Sherman St.,Denver,Colorado 80203 (303)866-3581 LIC • WELL PERMIT NUMBER 78615 -F - DIV. 1 WD 1 DES. BASIN MO APPLICANT APPROVED WELL LOCATION WELD COUNTY NW 1/4 SE 114 Section 19 NIOBRARA ENERGY PARK LLC Township 11 N Range 66 W Sixth P.M. 2725 ROCKY MOUNTAIN AVE#400 DISTANCES FROM SECTION LINES LOVELAND,CO 80538- 2465 Ft from South Section Line 1699 Ft from East Section Line UTM COORDINATES (Meters,Zone:13,NAD83) (970)612-4100 Fasting: Northing: PERMIT TO CONSTRUCT A WELL (amended) ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT Page 1 of 2 CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2,unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-90-137(4)and(10)as an additional well to Well No.76990-F, 4) The use of ground water from this well is limited to commercial,industrial and residential uses. 5) The pumping rate of this welt shall not exceed 200 GPM. licant. 6) The average annual amount of ground water to be withdrawn by this well is 411.8 acre-feet,as requested by the App The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 411.8 acre-feet,until such lime as the final quantity of water underlying the property is determined based on site specific information. see revision below 103 ft 7) Production is limited to the upper Laramie aquifer which is located approximately 145-feet below land surface and extends to a depth of 710 feet. Plain casing must be installed and grouted to prevent the withdrawal of ground water from other aquifers and the movement of ground water between aquifers. Depths to the top and bottom of the upper Laramie aquifer are based on lithologic logs and are approximate. These depths may be adjusted based on site-specific geophysical log data. Prior to casing the well the Applicant must coordinate with the Hydrogeological Services Group of the State Engineer's Office to determine the actual aquifer interval for the upper Laramie aquifer at the location of the well. 8) The entire length of the hole shall be geophysically logged as required by Rule 9 of the Statewide Nontributary Ground Water Rules. 9) To provide an accurate geophysical log for the upper Laramie aquifer the well must be constructed to fully penetrate the upper Laramie aquifer.The entire length of the open bore hole shall be geophysically surveyed(using at a minimum gamma, spontaneous potential, shallow and deep resistivity,density and neutron porosity tools)prior to casing. Within 60 days after completion of this well the Applicant shall serve copies of the geophysical log suite upon the State Engineer in both hardcopy and digital form(.tiff and.las formats). 10) The Applicant must provide adequate site specific information to the State Engineer's Office to accurately determine the specific yield of the upper Laramie aquifer underlying the Applicant's property. Within 120 days after completion of this well the Applicant must serve copies of such site specific information upon the State Engineer in a format approved by the State Engineer. Specifics of the methodology and analysis required to make such a determination of specific yield must be made in consultation with staff of the H drogeological Services Group of the State Engineer's Office,as described in the attnrhe _findings 11)AP P rs well shall be located at least 600 f et fr a isti II ompleted in the s me aquifer,that is not owned by the i t. TLK State Engineer By �Recejpt No 3667197O DATE ISSUED 11-13-2014 EXPIR TIO DATE 11-13- 5 , _. 4i' , Receipt No.3667197C WELL PERMIT NUMBER 78615 -F Page 2 c ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 12) This well shall be located not more than 200 feet from the location specified on this permit. 13) This well is subject to administration by the Division Engineer in accordance with applicable decrees,statutes,rules,and regulations. 14) A totalizing flow meter must be installed on this well and maintained in good working order. Permanent records of all diversions must be maintained by the well owner(recorded at least annually)and submitted to the Division Engineer upon request. 15) The owner shall mark the well in a conspicuous place with well permit number(s),name of the aquifer,and court case number(s)as appropriate. The owner shall take necessary means and precautions to preserve these markings. Note:Once staff of the Hydrogeological Services Group acknowledges that condition nos.9& 10 have been satisfied by either well 76990-F or an additional well to 76990-F,conditions 9&10 are waived for the remaining wells. NOTE:The ability of this well to withdraw its authorized amount of water from this non-renewable aquifer may be less than the 100 years upon which the amount of water in the aquifer is allocated,due to anticipated water level declines. Note: Permit condition of approval number 7 is modified to adjust the top of Upper Laramie aquifer to 103 ft below ground surface based on site-specific information, MAS 12/9/2014. EXPIRATION DATE EXTENDED TO NOVEMBER 13,2016 (DMG 11/12/15) Condition of Approval No. 6 is modified in accordance with Revised Findings of the State Engineer for Permit no. 76990-F and Additional Wells dated 1-6-2016. The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 695 acre- feet.TLK 1-6-2016 J I ir Form No. OFFICE OF THE STATE ENGINEER GWS-25 COLORADO 3DIVISION erman St.,OF Denver, TEo R flRESOURCES 3 (303)866.3581 LIC WELL PERMIT NUMBER 78616 -F DIV. 1 WO 1 DES. BASIN MD APPLICANT APPROVED WELL LOCATION WELD COUNTY NW 1/4 SE 1/4 Section 19 NIOBRARA ENERGY PARK LLC Township 11 N Range 66 W Sixth P.M. 2725 ROCKY MOUNTAIN AVE#400 DISTANCES FROM SECTION LINES LOVELAND, CO 80538- 2036 Ft.from South Section Line 1695 Ft.from East Section Line UTM COORDINATES(Meters,Zone:13,NAD83) (970)612-4100 (amended) Fasting: Northing: PERMIT TO CONSTRUCT A WELL ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT Page 1 of 2 • CQNOITJONS OF APPROVAL 1) This well shall be used In such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2, unless approval of a variance has been granted by the Stale Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-90-137(4)and(10)as an additional well to Well No.76990-F. 4) The use of ground water from this well is limited to commercial,industrial and residential uses. 5) The pumping rate of this well shall not exceed 200 GPM. 6) The average annual amount of ground water to be withdrawn by this well is 411.8 acre-feet,as requested by the Applicant. The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 411.8 acre-feet,until such time as the final quantity of water underlying the property is determined based on site spec information.See revision below 97 7) Production is limited to the upper Laramie aquifer which is located approximately 445-feet below land surface and extends to a depth of 710 feet. Plain casing must be installed and grouted to prevent the withdrawal of ground water from other aquifers and the movement of ground water between aquifers. Depths to the top and bottom of the upper Laramie aquifer are based on lithologic logs and are approximate. These depths may be adjusted based on site-specific geophysical log data. Prior to casing the well the Applicant must coordinate with the Hydrogeological Services Group of the State Engineer's Office to determine the actual aquifer interval for the upper Laramie aquifer at the location of the well. 8) The entire length of the hole shall be geophysically logged as required by Rule 9 of the Statewide Nontributary Ground Water Rules 9) To provide an accurate geophysical log for the upper Laramie aquifer the well must be constructed to fully penetrate the upper Laramie aquifer.The entire length of the open bore hole shall be geophysically surveyed(using at a minimum gamma, spontaneous potential,shallow and deep resistivity,density and neutron porosity tools)prior to casing. Within 60 days after completion of this well the Applicant shall serve copies of the geophysical log suite upon the State Engineer in both hardcopy and digital form(.tiff and las formats). 10) The Applicant must provide adequate site specific information to the State Engineer's Office to accurately determine the specific yield of the upper Laramie aquifer underlying the Applicant's property. Within 120 days after completion of this well the Applicant must serve copies of such site specific information upon the State Engineer in a format approved by the State Engineer Specifics of the methodology and analysis required to make such a determination of specific yield must be made in consultation with staff of the H yd ogeological Services Group of the State Engineer's Office,as described in the attached findings C� ...Cr . in_ T ism� ti shall be located at least 600 4et from ayly istipg y3el ompleted in the same aquifer,th t is not owned by h {R� _ TLK i 'ti-20 State Engineer By Receipt No 3667197E DATE ISSUED 11-13-2014 EXPI N DATE 11-1 015 i - ___ - Receipt No.36671978 WELL PERMIT NUMBER 78616 -F Page 2 ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 12) This well shall be located not more than 200 feet from the location specified on this permit. 13) This well is subject to administration by the Division Engineer in accordance with applicable decrees,statutes,rules,and regulations. 14) A totalizing flow meter must be installed on this well and maintained in good working order. Permanent records of all diversions must be maintained by the well owner(recorded at least annually)and submitted to the Division Engineer upon request. 15) The owner shall mark the well in a conspicuous place with well permit number(s), name of the aquifer,and court case number(s)as appropriate. The owner shall take necessary means and precautions to preserve these markings. Note: Once staff of the Hydrogeological Services Group acknowledges that condition nos.9&10 have been satisfied by either well 76990-F or an additional well to 76990-F,conditions 9&10 are waived for the remaining wells. NOTE:The ability of this well to withdraw its authorized amount of water from this non-renewable aquifer may be less than the 100 years upon which the amount of water in the aquifer is allocated,due to anticipated water level declines. Note: Permit condition of approval number 7 is modified to adjust the top of Upper Laramie aquifer to 97 ft below ground surface based on site-specific information, MAS 12/16/2014. Condition of Approval No. 6 is modified in accordance with Revised Findings of the State Engineer for Permit no. 76990-F and Additional Wells dated 1-6-2016. The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 695 acre-feet.TLK 1-6-2016 • Form No. OFFICE OF THE STATE ENGINEER GWS-25 COLORADO DIVISION OF WATER RESOURCES 818 Centennial Bldg.,1313 Sherman St., Denver,Colorado 80203 (303)886.3581 1425 WELL PERMIT NUMBER 77752 -F DIV. 1 WD 1 DES. BASIN MD APPLICANT APPROVED WELL LOCATION WELD COUNTY SW 1/4 NE 1/4 Section 19 NIOBRARA ENERGY PARK LLC Township 11 N Range 66 W Sixth P.M. 2725 ROCKY MOUNTAIN AVE#400 DISTANCES FROM SECTION LINES LOVELAND, CO 80538- 1435 Ft. from North Section Line 1933 Ft. from East Section Line (970) 586-4542 UTM COORDINATES(Meters.Zone:13.NAD83) CHANGE/EXPANSION OF USE OF AN EXISTING WELL (Amended) Fasting: 515368 Northing: 4528776 ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT Page 1 of 2 CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CDR 402-2,unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved for the use of an existing well pursuant to CRS 37-90-137(4)and(10)as an additional well to Well No.76990-F, Permit no.288087 is hereby canceled. 4) The use of ground water from this well Is limited to commercial,industrial and residential uses. 5) The pumping rate of this well shall not exceed 53 GPM. 6) The average annual amount of ground water to be withdrawn by this well is 85.3 acre-feet, as requested by the Applicant. The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 411.8 acre-feet,until such time as the final quantity of water underlying the property Is determined based on site specific information. See revised COA#6 Below 7) Production is limited to the upper Laramie aquifer. B) The entire length of the hole shall be geophysically logged as required by Rule 9 of the Statewide Nontributary Ground Water Rules. 9) The owner shall mark the well in a conspicuous place with well permit number(s),name of the aquifer,and court case • number(s)as appropriate. The owner shall take necessary means and precautions to preserve these markings. 10) A totalizing flow meter must be installed on this well and maintained in good working order. Permanent records of all diversions must be maintained by the well owner(recorded at least annually)and submitted to the Division Engineer upon request. 11) This well shall be located at least 600 feet from any existing well,completed in the same aquifer,that is not owned by the applicant. 12) This well shall be located not more than 200 feet from the location specified on this permit. 13) This well is subject to administration by the Division Engineer in accordance with applicable decrees,statutes, rules,and regulations. APPROVED TLK ttt State Engineer By Receipt No. 3662224 DATE ISSUED 12-05-2013 EXPI ON DATE Receipt No.3662224 WELL PERMIT NUMBER 77752 -F Page 2 ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT ) CONDITIONS OF APPROVAL 14) The Applicant must provide adequate site specific information to the State Engineer's Office to accurately determine the specific yield of the upper Laramie aquifer underlying the Applicant's property. Within one year of issuance of this permit, the Applicant must serve copies of such site specific information upon the State Engineer in a format approved by the State Engineer. Specifics of the methodology and analysis required to make such a determination of specific yield must be made in consultation with staff of the Hydrogeological Services Group of the State Engineer's Office,as described in the findings for permit no. 76990-F. NOTE:The ability of this well to withdraw its authorized amount of water from this non-renewable aquifer may be less than the 100 years upon which the amount of water in the aquifer is allocated, due to anticipated water level declines. NOTICE:This permit has been approved subject to the following changes:The distances from section lines were determined from UTM coordinate values provided with the permit application. You are hereby notified that you have the right to appeal the issuance of this permit,by filing a written request with this office within sixty(60)days of the date of issuance, pursuant to the State Administrative Procedures Act.(See Section 24-4-104 through 106,C.R.S.) Condition of Approval No. 6 is modified in accordance with Revised Findings of the State Engineer for Permit no. 76990-F and Additional Wells dated 1-6-2016. The average annual amount of ground water to be withdrawn by this well in combination with well 76990-F and all other additional wells to 76990-F shall not exceed 695 acre- feet.TLK 1-6-2016 I 0 Hello