The URL can be used to link to this page

Browse Search

Home My WebLink About20143057.tiff DEPARTMENT OF PLANNING SERVICES 1555 N 17th Ave, Greeley, CO 80631 Phone (970) 353-6100 x3540 Fax (970) 304-6498 USE BY SPECIAL REVIEW (MINING OPERATION) APPLICATION FOR PLANNING DEPARTMENT USE 1. 1 ^ DATE RECEIVED: r --ILj RECEIPT#/AMOUNT# 1$VJ4 W ,00..Lt CASE#ASSIGNED: ) (t(k-c o At APPLICATION RECEIVED BY PLANNER ASSIGNED: D/\ To be completed by APPLICANT is accordance with procedural guide requirements: 1. I (we), the undersigned, hereby request a hearing before the Weld County Planning Commission concerning a proposed gravel (gravel, coal, borrow pit, etc.) mining operation for the following described unincorporated area of Weld County: Legal Description east one half(E2) , Section 12 , Township 1°North, Range 67 West Flood Plain: n/a Zone District: n/a ,Total Acreage: 321 , Overlay District: n/a Geological Hazard: n/a , Airport Overlay District: n/a 2. Surface owner(s)of area of land described Name: Scott D Koskie Address: 14570 N CR 7 Phone: Name: Address: Phone: 3. Owner(s) of mineral rights or substance to be mined Name: SANE' Address: Phone: Name: Address: Phone: 4. Applicant's name: Weld County Public Works Dept. Email Address Address: 1150 O St., PO Box 758, Greeley CO 80632 Phone: 970-336-7215 5. Identify any prior permits for mining held by applicant or affiliated person: M1978 210 Geisert Pit 112C, M1983 213 Lehr Pit 112C I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my (our)knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicatin that the signatory has to legal authority to sign for the corporation. 4AZ 7-ne- 6 e ct Signs re: Owner or Authoriz Agent a Signature: Owner or Authorized Agent Date 14 KOSKIE PIT Use by Special Review for (Mining Operation) Location: CR 120 and CR 23 Prepared For Weld County Government Weld County Colorado P.O. Box 758 Greeley, CO 80632 Land Owner Scott Koskie 14570 N CR 7 Wellington, CO 80533 Operator Weld County Public Works Department 1111 H Street Post Office Box 758 Greeley, Colorado 80632-0758 U:AEr gumming A PLANNING—DEVELOPMENT REV IEV✓AUSR Mining Operatians\ICoskie PitvKoskie Pit Cover Page docx QUESTIONNAIRE RESPONSE The following questions are to be answered and submitted as part of the USR application. If a question does not pertain to your use, please respond with "not applicable", with an explanation as to why the question is not applicable. The application requirements are outlined in Section 23-2-260 and Chapter 23, Article IV, Division 4, of the Weld County Code. The application shall contain the following information. 1. A detailed description of the method of mining operation. The description shall include: a. The types and numbers of structures that will be erected (built) on site including operation and processing equipment to be employed. There will be no permanent structures constructed on site as part of the mining operation. A portable processing facility for product crushing and screening will be brought to the site and used as needed. Pit-run material will be hauled or conveyed to the processing plant where material and product will be stockpiled for hauling on to County roadway. Alternately, material may be hauled off-site or material may be hauled and stockpiled on site (recycled asphalt stockpiles or raw materials). It is anticipated that mining will be done using excavators, front end loaders, dozers, scrapers, and haul trucks. b. The number of shifts to be worked and the maximum number of employees. During full mining and processing operations, approximately 5-6 employees will be on site. Only one daytime shift is anticipated. Others using the site will include material haul truck drivers. Depending on location, material haul trucks entering CR 120 will proceed east to U.S. Highway 85 or south on CR 23 to projects. c. Whether the operation will involve a wet or dry pit. The Koskie site will be a dry pit operation. Topsoil thicknesses will typically be less than 12 (twelve) inches. Topsoil will be stockpiled at the site. The topsoil piles will be seeded to prevent erosion and loss of soil. The estimated thickness of the gravel-bearing zone varies from 0-15 feet thick at the Koskie site. No high wall mining is anticipated. d. County roads and bridges to be utilized, along with site entrance/exit points. (Coordinate with County Engineer). The site entrance is to be located on CR 120. Depending on hauling location needs, material haul routes will proceed east/west along CR 120 to CR 23 or to U.S. Highway 85. e. The size of the area and stages to be worked at any one time. The Koskie site likely has only 10 years or less of gravel and sand reserves. Approximately 30 acres (15 acres for stocking and processing and 15 acres for mining) will be disturbed during the initial phase of the mining operation. The area will be stripped so that the crushing and screen plant can be set up on the west end of the permitted area. Mining will start on the east end of the permitted area and progress to the west. During mining and reclamation activities, watering trucks for dust control will be used as needed. f. A time table giving the periods of time and number of phases to be worked, which will be required for the various phases of the operation. The gravel excavation and processing will be seasonal with stockpiling of gravel for later County uses depending upon the local road repair and construction needs. The Koskie site likely has only 10 years or less of gravel and sand reserves. Direction of mining will be from the east to the west with 15 acres being disturbed during the initial phase of the mining operation. g. The depth and thickness of the mineral deposit to be mined and the thickness of overburden to be removed. The estimated thickness of gravel-bearing zones varies from between 0-15 feet thick at the Koskie site; no high wall mining is anticipated. 1 Topsoil thickness at the Koskie site is thin, typically less than 12 (twelve) inches. Topsoil will be stockpiled, and will be seeded to prevent erosion and loss of soil. h. The proposed use of reclaimed lands and an explanation of the reclamation process. The pre-mining land use is non-irrigated crop land. The perimeter of the fields can be classified as rangeland since it is vegetated with native grasses. The landowner currently follows a rotation planting of wheat, sudan, and summer fallow. Post mining land use will be non-irrigated cropland with the expectation that the owner will follow the same pre-mining crop rotation. The un-mined portion of the property for which this permit application is submitted is utilized as cropland. Reclaimed areas will be graded at a maximum ratio of four to one (4:1) horizontal to vertical. The portions of the mine permit area that are to be returned to cropland will be graded so they can be traversed with farm equipment. Site reclamation will be sequential as mined areas are completed. Reclaimed areas will be stabilized by re-grading of the site where excavation occurred. Organic matter will be added to the soil as necessary to return the mined area to approximate pre-mining crop production levels. Disturbed areas outside of the field will be reclaimed with a native grass mixture. The mining area access road may be left in place following cessation of mining for rangeland/cropland access. The source of technical advice in that type of reclamation for open cut mining land. Replacement of topsoil will be in thickness equal to or exceeding the original topsoil depths found on this site. The mined area will be returned to approximate pre-mining crop production levels. The areas reclaimed with the native grass mixture will use a seed mix and application rate to be determined in accordance with NRCS guidelines and Weld County Weed Control requirement. 2. A statement which explains how the proposal is consistent with the Weld County Comprehensive Plan. Goal #1: The Public Works Department, following temporary mining disturbances from the proposed Koskie mining site, will return the reclaimed land to rangeland/cropland for the continuation of agricultural operations. Goal#2: The reclaimed Koskie site is not anticipated to encounter groundwater or surface water and will have no ponds. The proposed mining operation will occur on land leased and will be returned to usable rangeland/cropland. Goal #3: County vehicles that are associated with the mining operation will be kept on site. Designated areas and receptacles for refuse and litter will be used to properly store and dispose of waste materials. Goal #4: There will be no permanent structures. The property will not be RE/subdivided by the proposed mining and reclamation activities. Goal #5: The Koskie property will not have divisions because of the proposed mining and reclamation activities. Goal #6: The Koskie property will be returned to the pre-mining land use; rangeland/cropland. No permanent land use change is proposed for the site. Goal #7: The mining operation will be using portable sanitation facilities and bottled water to service the employees on site. Best management practices minimize erosion and sediment transport from the site, protecting water resources and adjacent properties. All County, State and Federal rules and regulations will be followed with the mining operation. Goal #8: The Koskie site is a proposed mining operation that is temporary. Mining and reclamation will strive to protect the general existing land contour characteristics, vegetation, and water courses. Goal #9: The Koskie site mined area will be returned to pre-mining land use as rangeland/cropland and will be graded so it can be traversed with farm equipment. 2 3. A statement which explains how the proposal is consistent with the intent of the district in which the use is located. Mining operations, open pit mining and materials processing, are allowed in the agricultural zone district by (USR) special review. The Koskie mining site does not present a threat to the health, safety, and general welfare of the present and future residents of Weld County. 4. If applicable, a statement which explains what efforts have been made, in the location decision for the proposed use, to conserve productive agricultural land in the agricultural zone district. The Koskie site is in a location that has adequate aggregate resources for Weld County mining operations. The reclamation Plan will conserve productive agricultural land in the agricultural zone. 5. A statement which explains there is adequate provision for the protection of the health, safety and welfare of the inhabitants of the neighborhood and the County. Weld County Public Works will acquire both the County (USR) and the State (112c) permits for the proposed mining and reclamation activities; they contain adequate provision for the protection of the health, safety, and welfare of the inhabitants of the neighborhood and Weld County. 6. A statement describing the existing surrounding land uses and explaining how the proposal will be compatible. The gravel deposits proposed to be mined are stream channel deposits with Lone Tree Creek, an ephemeral stream that is located approximately one half (1/2) mile to the east of the Koskie site. Weld County has been mining the Lehr pit (M1983-213)just north of the proposed Koskie site for years. The rural nature of the area and the existing mining operations make the proposed mining operation and reclamation plan compatible with surrounding land uses. 7. A statement describing the existing land use. The pre-mining land use is non-irrigated cropland. The property to the west is rangeland and cropland and the un-mined portion of the property on which this permit application is submitted is utilized as cropland. 8. Describe, in detail, the following: a. How many people (employees, visitors, buyers, etc.)will use this site? Weld County will have approximately 5-6 employees for the mining and processing operation on site. Others using the site will include material haul truck drivers. Haul truck traffic is be between 25 and 30 trucks entering/exiting the site multiple times on a gravel haul day. Gravel excavation and processing will be seasonal, depending upon the local road repair and construction needs. b. What are the hours of operation? Weld County anticipates that operations will be performed during daylight hours Monday through Friday. c. What type and how many animals, if any, will be on this site? No animals are to be kept on site as part of the mining operation. However, there is a windmill and livestock well located adjacent to the mine permit area that could be used for grazing operations. d. What kind (type, size, weight) of vehicles will access this site and how often? Trucks may vary from pick-up size to 15-ton tandems or semi-trucks and trailers at 25 tons. Generally vehicle weights will fall within 85,000+ pounds or less. Haul truck traffic is between 25 and 30 trucks entering/exiting the site multiple times on a gravel haul route day. e. Who will provide fire protection to the site? 3 The operator, "County," in cooperation with the Nunn Fire Protection District will provide fire protection to the site. All mining employees have training under federal MSHA regulations respective of fire, hazardous materials, and matters of health, safety and emergency first aid. f What is the water source on the property? (Commercial well or water district) Bottled water for drinking and sanitation will be available for employees. g. What is the sewage disposal system on the property? (Existing and proposed). On-site sanitary disposal will be provided with portable toilet facilities. h. If storage or warehousing is proposed, what type of items will be stored? No on-site warehousing is proposed. During full mining and processing operations, two mobile trailers (generator and mechanical) will be on site. Equipment maintenance and limited amounts of fuel and lubricants may be stored. Explain where storage and/or stockpile of wastes will occur on this site. The storage of recycle materials will be transported to the site (recycled asphalt or fill base course) for future use on County roadway. No storage and/or stockpiling of wastes is anticipation for this location. j. Explain the proposed landscaping/screening for the site. The landscaping shall be separately submitted as a landscape plan map as part of the application submittal. No specific landscaping/screening plan is being proposed. The mining will primarily occur below grade, limiting the view of the disturbed area from the adjacent property. k. Explain how long it will take to construct this site and when construction and landscaping is scheduled to begin. Timetable 23-2-260.C.12 It is anticipated that pre-mining activities will begin on the site during 2014. The Koskie site likely has only 10 years or less of gravel and sand reserves. Explain any proposed reclamation procedures when termination of the Use by Special Review activity occurs. Reclamation of the proposed permit area will create non-irrigated cropland, which is the pre- mining land use. The perimeter of the fields can be classified as rangeland since it is vegetated with native grasses. A reclaimed mine pit side slope will be created from backfill with overburden and, if necessary, a combination of"cut and fill" so as to preserve overburden for use in establishing a plant growth medium elsewhere in the reclamation. The reclaimed slope will be graded at a maximum of four to one (4:1) horizontal to vertical. The portion of the mine permit area that is to be returned to cropland will be graded so it can be traversed with farm equipment. The pit will be graded so that any stormwater will be directed along its historical flow path towards Lone Tree Creek. m. Explain how the storm water drainage will be handled on the site During mining, storm water run-off from the disturbed area will generally be contained within the mine pit. Run-off from the site will be controlled with "best management practices"to limit erosion and sediment transport and will be directed to the Lone Tree Creek drainage. Much of the pit, after mining, will contain a pit floor that gently drains towards Lone Tree Creek along its historical flow path. n. Method and time schedule of removal or disposal of debris, junk and other wastes associated with the proposed use. Debris, junk, and waste are not anticipated as part of the project needs or activities; however, where debris or other unwanted material accumulates, for the purposes of sanitation, safety, and 4 general courtesy to our neighbors, all unwanted materials will be removed within thirty (30) days of deposition to an appropriate landfill or other suitable location. o. A statement delineating the need for the proposed use. The operation of the Lehr pit has come to an end. The Koskie site just south of the existing pit is a good location in the north/west corner of Weld County. This pit location will be used for local road repair and construction needs. 9. A statement which explains the Use by Special Review area is not located in a flood plain, geologic hazard and Weld County Airport overlay district area; or that the application complies with Chapter 23, Article V, Overlay District Regulations as outlined in the Weld County Code. The proposed permit area is not located within a platted flood plain, geologic hazard, or Weld Airport overlay district area. U:\Engineering\PLANNING—DEVELOPMENT REVIEWIUSR Mining Operations\Koskie Pit\Questionnaire.docx 5 ITEMS REQUIRED FOR sum/lir-rm. WASTE HANDLING PLAN: No hazardous or toxic waste materials will be produced during mining. Appropriate covered receptacles will be used to collect general non-hazardous trash. Receptacles will be emptied and the trash will be taken to Public Works dumpsters, then to the landfill as needed. DUST ABATEMENT PLAN: Water trucks will apply water as needed to internal haul roads and other disturbed areas to prevent excessive dust generated from mining and reclamation activities. Operations will be curtailed during high wind periods when watering alone cannot control dust from being blown to adjacent properties. FLOOD HAZARD DEVELOPMENT PERMIT (FHDP): The proposed permit area is not located within a platted flood plain. Mining will not occur within the Lone Tree Creek channel. EVIDENCE OF WATER SUPPLY: Bottled water or coolers will be used on site. Also water will be used for dust control and crushing operations; it will be trucked to the site from elsewhere. EVIDENCE OF SEWAGE DISPOSAL: On-site sanitary disposal will be provided with portable toilet facilities. NOISE REPORT-NARRATIVE: The operation involves the surface extraction of aggregate. Extraction removal of the deposit utilizes, but is not limited to, bulldozers, scrapers, front end loaders, and excavators. In addition, a portable crusher plant, dry processing plant, screening plant and/or recycling operations, and related processing equipment are required. Noise levels will be maintained within the industrial limits. The portable plant will be located on the pit floor providing a buffer between the pit and the nearest residences, 1 mile to the east on CR 120. GEOLOGIC HAZARD DEVELOPMENT PERMIT: This site is not located in a geologic hazard area. SPECIAL REVIEW PLAT RECORDING FEE: Not included at this time. Traffic Narratives: Haul trucks traffic is between 25 and 30 trucks entering and exiting the site daily making between 3 to 6 trips each on a gravel haul day. Drainage Narratives: Storm water run-off from the disturbed area will generally be contained within the mine pit. U:\Engineering\PLANNING—DEVELOPMENT REVIEW\USR Mining Operations\Koskie Pit\Items Required for Submittal.docx EXHIBIT P—Municipalities within Two Miles The proposed Koskie site lies in unincorporated Weld County. There are no municipalities within a 2 mile radius of the proposed Koskie gravel mine site. The unincorporated town of Carr is approximately 3.3 miles to the northwest. The town of Nunn is approximately 10 miles south and east of the Koskie site. The adjacent CR 120 gravel road is owned and maintained by Weld County Government. . WELD COUNTY ACCESS PERMIT aCO Weld County Public Works Dept. 3`4 Phone: (970) 304-6496 1111 H Street After Hours: (970) 356-4000 P.O. Box 758 -o T;, IF 07 Emergency Services: (970) 304-6500 x 2700 Greeley, CO 80632 G�Z �r.Q� Inspection: (970) 304-6480 4/C W° Permit Number: AP14-00178 Issuance of this permit binds applicant and its contractors to all requirements,provisions,and ordinances of Weld County, Colorado. Project Name: Koskie Gravel Pit(WC) Expiration date: 11/17/2014 Applicant Information: Property Owner Information: Name: Name: Scott Koskie Company: Weld County Public Works Company: Scott Koskie Phone: 970-304-6496 x3750 Phone: Email: Email: Location: Proposed Use: Access is on WCR: 120 Temporary: Nearest Intersection WCR: 120 &WCR: 23 Single Residential: Distance From Intersection: 3670 Industrial: Number of Existing Accesses: 1 Small Commercial: Planning Process: Other PRE14-0155 oil&Gas: Large Commercial: Road Surface Type&Construction Information: Subdivision: Road Surface: Gravel Field (Agricultural Culvert Size &Type: 15" CMP/RCP min. Only)/Exempt: Start Date: Finish Date: Materials to Construct Access: Gravel Required Attached Documents Submitted: Traffic Control Plan: Yes Certificate of Insurance: Yes Access Pictures: Yes A copy of this permit must be on site at all times during construction hours Daily work hours are Monday through Friday DAYLIGHT to%HOUR BEFORE DARK(applies to weekends if approved) Approved MUTCD traffic control/warning devices are required before work begins and must remain until completion of work Special Requirements or Comments Parcel 030312000007. Utilize NEW access point on CR 120(1-Industrial) located approx. 3670 ft. East of CR 23. Access point(1-AG) located approx. 5250 ft. East of CR 23 is NOT to be used. Approved by: , Weld County Public Works Date: 6/4/2014 rye: om=:zoiIC4o 13..:45 m,.. Print Date-Time: 6/4/2014 1:26:16PM Report ID: PW00008v001 Page 1 of 1 EXHIBIT N— Source of Legal Right—To - Enter Please see the attached Right to Enter form. The Koskie property is owned by Scott Koskie and Weld County has entered into a long team lease agreement with the land owner. RESOLUTION RE: APPROVE AGREEMENT FOR RIGHT TO ENTER TO OBTAIN SOIL AND/OR GRAVEL FOR ROAD PURPOSES AND AUTHORIZE CHAIR TO SIGN - SCOTT KOSKIE WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Horne Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Agreement for the Right to Enter to Obtain Soil and/or Gravel for Road Purposes between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and Scott Koskie, 14570 N. County Road 7, Wellington, Colorado 80549, with terms and conditions being as stated in said agreement, and WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy of w.hfr_h ±- attached hereto and incorporated herein by reference. _ NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weid County, Colorado, that the Agreement for the Right to Enter to Obtain Soil and/or Gravel for Road Purposes between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and Scott Koskie be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 30th day of October, A.D., 2013_ BOARD OF COUNTY COMMISSIONERS WELD COLORADO ATTEST: �w d is . Garcia, Chair Weld County Clerk to the Board Douglas Rademacher, Pro-Tern BY: Deputy rk to the Boa •' � I • C� +p •an P. Conway r1 APP�ROtlE� AS TO F� '�� . F i '4u.� ��t Y1�`-�-t• .1 Aw.„--- i�ke Freeman runty • :rney � :-._ �' �-- , arbara Kirkmeyer NOV_L5 2013 — Date of signature: : Posit e,Pc r 0,2t e 2013-3066 EG0068 product.ea PAID UP Reeky Mouman 1959 536 reside',Rev.1990 OW AND GAS LEASE ',h THIS AGREEMENT,made and entered info this 5w day of Agrll,.20 ,fly and netween Penny J_iehgsie a married woman Cal eneTr In nor sole and separate ,Ti` planer .."vnose address sgplA. rtt - r�J wails r Q} n uoinaller called lessor whether and en morel.and Ono-limo Enemy s Associates Ina LLC wine address(s.3sly/f$.D -In 80120, 'remalter called losSee, hD/d r f l , r -Loin,-,, ea 6-05. 5- .. gm I'NEbSER I On %sgjt fo 5fitaro c e d tin of TEN AND MORE—dollars 51000 in nand pile,receipt or which e hereby ac no edged.and of the slyer. nib 01 lessee heYr . on . pyfeto demises.leases and lets' l y unto lessee t1 a lands described Iselow for thin purpose en sl gab g prospecting.miming (by goopky 11 n e a ddsk rh 9 operating For and producing at or gas,or both las defined below),together web the right o construct and maintain pp Ines Iolepncnw II Ib roadways.plants.equipment,and stackres thereon to produce.save and valve care of oil ana g.$(which nont shall Include specdiew"y a t351.Oaia *seine),for ingress to aria egress from said lands by leased.on Its assignees,agents or permntees,necessary to or associated with!Se constrec%1 It miiyhaa eel x T plpellres,!elephone and recent lines,!finks,ponds.roadways.plant,equipment.and structures on said lads to produce.save and !eke ca'e 0•r,dell an Ital In4Rvclu5Ne rigid to inject air gas,water,brine and oilier fads nom any source into:he subsurface strata,and any and ail OTer rights and privileges nee* 11$ ncldent.o,or wvemmn!'or the economical operation ol said lane alone or conjointly'with nerglbo ring land,ter tie production,saving and(Wong care of oil and girl, )i.ltennjoe5bn Vials gas,.eater, brine.and other fluids into die subsurface spat,said lands ovine situated a the Counry of Weld Stale of Colorado described as Idiom o.wif • Section 1 id E2NORT11 RANGE Bi EST,h�P.ka. e2 1111111111111111111111111111111111111111111111 II!ill! SEE EXHIBIT"A'ATTACHED HERETO AND MADE A PART HEREOF 3701535 06/24/2010 12:41P Weld County, CO and containing 320.00 acres,more or less. 1 of 3 R 16.00 0 0.00 Steve Moreno Clerk&Recorder in addition to Me land described above,lessor Ileleby grants,leases and lets exCluslvely unto lessee,to the same extent as if speolcally described.Lands which are corned or claimed by lessor cy one of no following reasons(1)al lands and rights acquired or repined cry lessor by avulsion.accretion,rebate°or olhenylsb as he result of a Change in the boundaries or centerline of any river cr sirearn traversing or a0ldning the lands described above„(2)all riparian lands and fights which are or may be modest,appurtenant,related ix altneute(I to lessor In any lake stream or river traversing or ad(eielng Ine lands described above by virtue of tessera ownersmp of NO land doscibed active:(3)all lands included n any road,easement or ngnl.ol-way!ravening or adloining the lands described above wnAh are or may be inOdenl appurmnanl related Or attributed to Assn,oy nrtan of fewer's ownership of Me land descnbed above,and(a)all slaps Or Tracts of land adjacent er olnliguchs to the lands descnbed 500ve owned or acquired by lessor"rouge adverse possession or other Smiler statutes of the state In which the lands are located. The term oil as used in lies lease shall be interpreted to include any liquid nydrocarbon substances which occur naturally in the earn.mclud:rtg drip gasoline or olher natural condensate recovered from gas without resort to manufacturing process.The term gas as used in this lease shall be Interpreted to include any substance either combustible or noncombustible,which is produced in a natural slate from the earth and which maintains a gaseous or rented stale at ordinary temperature and pressure conditions,including bul not limited to helium,nitrogen,carbon dioxide,hydrogen sulphide,coal bed methane gas,casinghead gas and sulphur. Subject to the other provisions herein contained.Nis lease shall remain.n force for a term of Five(5)years horn April 5,2010(herein called-primary lama and as long Mereafter as oil and gas,or either of them,is produced from the leased premises of(Irking operatons are continuously prosecuted.For purposes of this lease,a well completed for the production of coalbed methane gas shall he deemed ro be producing gas under Its:ease of all times when dexatenng of the coal seams earn seen Inc coalbed methane gas will be produced is occurring.For purposes of this lease.'drilling operations'snail include operations for the drilling of a new well and operations for the reworking,deepening or plugging back of a well or note or other operations conducted in an edon to espblisll,resolve or reresisa's!,production on oil and gets,dnllic,0 operations shall be considered to be"continuously prosecuted'it not mere Than ore hundred twenty(120)days shalt elapse between the completion and abandonment of one well or note and the commencement of drilling operations en another well or Maio;drilling operations shall[e deemed io be commenced for a new well at such time as lessee has begun the construslon of the wellsile location or(hie road'amen provides acc ss 1e the welleile lccaben,and drilling operations used be seemed to be commenced with respect to reworking,deepening.plugging back or Other operations conduct's.' n an anise to resume or ts,es!abiish production of oil ore gas al Shen bow aS:essee rias Me requisite equipment for such operatons al the wellsde 2.The lessee shall deliver to the Credit of the lessor as royally,free of cost,into the tense or in The pipe fine on the leased premises la which lessee may connect ns wells the equal fifteen percent(1 Ye)Wart Of all oil produced and saved tram Me leased premises,or lessee may from time to free at its option purchase any royally oil in its possession,paying the market once thereat piesaileg for oil of like grade and grevlty in the field where produced on the date of purchase The lessee shall pay i. sor,as royally,an gas,including asinghead gas or other gaseous substances.produced from the leased premises and sold Cr used off the premises or used to the manufacture of gasoline or other products,the market value al the well of ftieen percent(15%)of the gas sold or used.provided that on gas sold Ole royalty shall Oe scene percent(15%)of the amount realized from such sale.The amount realized from the sale of gas shall be the price established by the gas sales contract entered into m goal faith by lessee and a gas purchaser for such term and liver such Ccr.itiions as are customary in Inc industry.Price shall mean the net amount ?le,red by lessee after giving effect CO applicable regulatory orders slid attar aepligbon of any applicable once adjustments specdied in such contract or regulatory orders.In the event lessee compresses,Treats purifies or oenydrates such gas(whether on a off Me leased pramisesl or aansporr>gas off the leased premises,lessee in computing royalty hereunder May deduct from such price a reasonable charge for each 01 such functions performed;including associated fuel 3,This is a paid-up lease and all cash consideration first sealed above and annual rentals have been paid to lessor in advance to knee this lease in full force and effect throughout the primary term.In consideration of the payment of such Cash consecration and advance annual rentals,lessor agrees dial lessee shall Idt be obligated. except as otherwise provided herein,to commence or continue any operations during Inc primary tens Lessee may al any hose or limes during or atter the primary term surrender this lease as to all or any portion of Incised described stow,and as to any strata of stratum,by dehvenng to G5s0I or by bang al record a release et releases.and be relieved of all obligation thereafter accruing to the acreage surrendered, i.Any payments required to be made to bands pursuant 10 airs lease.other than the payment of royalties may be paid by lessee to the lesser or to tossers credit in the Sans.at — for;la successor or successors.of any tank wire which it may be mellged or consolidated or worth succeeds 10 its business assets or any pal!thereof_by purchase or otherwise)which shall continuo as the depository regardless of changes in the ownership of said taut Or Oil arm gas.All such payments may bo made by cash,check or drag mailed or delivered on or before the due gate for(flat payment Any payments so made shad be Wnpng oil the hens,devisees executors,administrators.and personal representatives of lessor and on lessors successors in interest or an lessors assigns. 5 if.at the expiration of the pnmary term of ems lease,oil or gas is net 0nng a:Woced from Ne leased premises Del lessee is then engaged in drilling operations, Otis lease shall continue in lace so long as drilling operations are continuously prosecuted.aro it production of oil or gas results from any such doling operations.this lease shall continuo in force so long as oil or gas shall tie produced Rom Me teased premises if,after the expiration or the primary term of this lease,production on Ire leased premises should cease for any cause,Ins'.ease shall not termviale it lessee is then engaged in dnlling operations,or within one hundred twenty(120)days after each such cessation Of production commences or resumes drilling operations,and this lease shall remain in Icrce so long as drilling opefalions are continuously prosecuted,and if production remelt therefrom.teen as long thereafter as oil or gas,s produced from ale leased premises. a.If al any lime,either before or attar the expiration of the primary term of MIS lease.Inane Is a'hall upado or poducng et on Ins on raids covered by Ohs base. or on other lands with which lands covered by this lease are pooled or unitized,but the well is sine in,whether before or after production therefrom,and this lease is not being maintained othewise as provided herein,this lease shall not terminate(unless released by lessee)and it shall nevertheless be considered Nat al or gas is being produced from lands covered by this lease during all limes while the well is se shut-in.Lessee shall use reasonable diligence to market the oil or gas capable of being produced from such shut-fn well,but shall be under no obligation lo market the oil or gas under terms,=dittos or circumstances which.in lesseei lodgment esemsed in goad fain.am unsatisfactory.When be lease'a continued m force in this manner,lessee shall pay or tender 10 Use lessor or lessor's successors or a69 fns,an ailment equal to 51.00 per year per n01 mineral acre covered by the ease.Soon payments shell be made on or before the shut-in royally payment dale,as defined below.next occurring after Iho expieloOn of one hundred twenty(120)days from!no dale Inc Well wan shubin,unless prier to such date oil or gas from Ole well:5 sold or used Or the lease is otherwise maintained as provided herein.In like manner.on or before each SUUeepng shut-in royalty payment dale while such well remains simian,lessee shall male payment of shut- in royalty in Me same amount and manner.The teen'shubin royalty payment dale shall mean the anniversary dale Ot this lease Any shu}in royalty payment may be made by cash.draft of Cnttk,mailed or entered Cn or before em shut-in royally date.Lessee's Mettle is law or lender or properly pay or lender.any'yen sun shall reender'esse_ liable for Me amount due but it shall riot operate la terminato Me lease. 7.If lessor owns a lesser interest in the above described land than tile entire and undivided fee simple estate therein,then Ine royalties,including Shut,n royally, herein provided shall be paid t0 lessor Only in the proportion which lessors interest bears to the whole and undivided wee.Any interest in production from the lands described herein to which the Interest of lessor may be subject shall be deducted from the royalty herein reserved 8.Lessee shall have the right lo use,free of oosL gas,oil and water produced on said land for its operation thereon,except water from wells and reservoirs of lessor.Lessen shall have the right at any time to remove all machinery and Fixtures placed on said premises,including the right to draw and remove casing. 5.Lessee shall pay 10 lessor reasonable amounts for damages caused by iG operations 10 glnwmg crops on sale land When requested by lessor,!asses!Wall bury as pipelines which traverse'cuilwated lands below plow depth_len well shalt be dolled nearer roan twee hundred 12001 feet to a nova@ or barn now on sold premises. without wnhon consent of lessor.Lessee shall have the right at any lime(but not Ma obligation),to remove all improvements.machinery.and Satutees placed or armored by lessee on said premises,including the right le pull and remove casings. 10.Lessee is hereby given lain Ogle and power at any tame and from lime 10 lime as a recumng right,?finer[More or aver production,as to all or any pan of the land descnbed above and as to any one or mare of the formations hereunder,to pool er unitize the leasehold estate and the mineral estate covered by this lease wrt other land,lease or leases in the immediate mint/Co, the production of oil and gas,or separately for fife production of eilhor,when In lessee's judgment It is necessary or advisable to do so,and irespecbve of whether authority similar to this exists with respect to such other land,lease or leases.Likewise.units previously formal to Metede forniahena not producing oil or gas may be reformed to exclude such non-producing formations.The Kerning or reforming of any unit shall be accomplished by lessee executing and Nam or iecerd a leclarallan Of such umlination or reformation when declaration Shall describe We end Any unit may Include rand upon which a moil has a erero co 'w lme been completed el ire an doing operations have been commenced.Production Milling Of rewoMi o operations or a'well stint-in for any mason anywrem on unit when includes all or a pan of Ms lease snarl lie irana as if it were production,drilling or reworking operations or a well shut-in under this tease.In lieu of the royalties elsewhere herein seemlier,,lessor Weill rocewo on production from Ma unit:0 pooled royalties only en the pertmn 01 such production allocated to this lease:such allowbun snarl Ce.that proportion of the unit production that the lotal dumber of surface acres coveiod by the lease and included in the unit hears le the total number of surface acres in such unit I1 Lessee snail nave the right 10 unitize,pool,or combine an or any part 01 the rand described ahem as'o one or more of the formations thereunder with other lands in the same general area ay entering into a woperauvu or unit plan of development or operation approved by any governmental authority and,Ran lime to lime,web like approval.to mends..strange or lemllnale any Sudan plan or agreement and.in such event,the teens,conditions,and provi5Kbn of this'ease shall be deemed mended to conform lo Me terms.condLLona, and provisions of leen approved coop'railve or unit plan of development or operation and eartilLnly,ail dolling and development requirements of this lease,oxpes or Implied,stall be satisfied incompliance with mu drilling and development requirements of such plan s agreement,and this lease shall not'enninale Cr expire dundg rho Lfe of such Olen or agreement In the event teat the feud described above or any part thereof shag hereafter be operated under any such cooperative or brit plan of development oroperahon'wMMofeby the production therefrom is apctated to different portions of the land covered by said plan.then tee production allocated I0 arty particular tract of land shall,for me grapes°of computing are royalties to be paid hereunder to lessor,be regarded as having been produce cAfromthe pendular tract or terra lo when it is allocated and not le any ether dad of land:and the royally payments to be made hereunder to resew.snag be based upon pr only as so allocated. 12.If trio GMIe of either party iterate is assigned or sublet,and the privilege of ass.gninq or sue:ening if whole or in part is expressly allowed.Me express and imprfed covenenls Iaereef shag extend to lee sublessees,successors and assigns el lire parties,and in lee event of an assignment or subletting by lessee,lessee Snail be relieved sea discharged as to the Leasenc'd rights so alilgned nr sublet from any[lability In Mega'thereafter accruing upon any of me covenants Or conditions 01 low lease. either express or implied.No change In Ownersem of doe lard,royalties.or other payments,however awmplisned,shall operatic to enlarge the obligations ar dimic'sh tee rights of lessee er require separate measunnq or installation of separate tanks by:meet NarvnNslanding any actual or constructive knmeedge Of or notice to lessee,no change in Ownership of said land cr of the right to receive royalty or other payments nereunder,or or any interne:therein.vein.whether by reason or 0551h conveyance or any other matter,stall be binding an lessee Iescept at ossee'a option in any particular case)enbl ono hundred Iwenly i 130)days after lessee has been lwmshed written notice thereof,and the supporting information nereinalter referee l0.by the party claiming as a result of such change in ownership or interest Such notice shall oe supported by engine'and cerbfied copies of all docemenls and other insW menbl or proceedings necessary in lessee's opinion to esrabllstr Rte ownershp of:lie claiming party l3.In the interest of Wnseivauvr,die protection of reserv0'r pressures and recovery el the greatest ultimate yield of oil and/or gas,lessee shall have the rgM to corrlb.ne the leased promises wile other premises m the same general area for the purpose of operating and maintaining represeuring and recycling facilities,and far such purpose may locate such ranabea.including input wells.van leased premises,and no royaNes shall be payabte nereunder upon any gas used for repressunna and recycling operations bantling the leased premixes. la. II tessor,during the primary term of this lease.rscewes a bore lee offer from a thud petty to purchase bona lessor a lease coveting any or all of the substances covered by thes tease and Covering all or a pardon of the land deter oed heroin,with such lease to oecome effective then expiration of this lease.which lessor is willing to accept from the ollenne Garry,lessor hereby agrees to retity lessee in renting of said ode:Immediately,including in the notice the name and address of the oherer. Me price altered and all Other pertinent tents and conditions of the offer.Lessee.for a period of hlteen(15)days alter the receipt of the(Mee.snail have the prior and preferferi right aryl option to purcnae the lease or pad thereof or Interest therein covered by the offer at the puce and on meterms 9�iird conditions apeotled in Me offer.MI oiled'made up to and induding the fast day of the primary term of lies lease snarl be sutled to no terms and conditions of this paragraph ha.Should lessee erect to purchase the tease pursuant to rho terms nereol,a shall no wady lessor in witting by mail,telefax.or telegram poor to expiration of said fifteen(15)day period.Lessee snail promptly thereafter furnish 10 lessor the new lease for execution 0)1 ester song with lessee's 5grn graft payaole to lessor in omen:of the specified amount as consideration for ale new lease sites draft being segect to approval of elle according to the tenors thereof Upon(echo'thereof,lessor shall promptly execute said lease and return same arena with the draft through lessors bans of record for payment. to.In the event lessor considers that lessee has not complied wN all tits obligations hereunder,either express or implied.lessor shall nary lessee in writing. seeing out spcorlcally in weal respects lessee has breached Ill's lease.Lessee andp Inca have sixty(60)days after receipt Or said notice%vein which to meet or commence to meet all or any part of Me breaches alleged by Weser no service aS said n aace avail as precedent to the bringing or any action by lessor on said lease far any cause,and no soch scion shall be brought until the lapse of sixty(W)days after service of such notice an lessee.Neither the service of said notice nor tee doing of any acts by lessee aimed to meet all or any of the alleged breathes shall be decreed an admsserr or presumpton that lessee has railed to pederm all its obligations hereunder.This lease crag never ha forfeited of cancelled for'allure to perform in whole Or in part any of its impkd covenants,Conditions.or stipulation until a judicial determination is made Mat such Iailsne exists end lessee Imes within a reasonable time to satisfy any such covenants,conditions,or stipulations, 16.All express and implied covenants at ines lease shall bo subject to all federal and sate.county,or municipal laws,executive orders,rules and regulations,and lessees obligations and covenants nereunder,whether express or implied,shall be ausp:nded at the time Of from time to time as compiance wen such obligations and covenants is prevented or hindered by On is in sonf et seen federal,sate,County.or municipal laws,rules,regulations or executive orders asserted as dhCral ey er under poblre authority alarming lerisd•ction,or Act of Gad.adverse nerd,weather,or n rSel•conidltlons,inability to obtain materials in Me open market or eanepodabon thereof,wars, Madras,lOcheuts.note,or other conditions or circpmslarices not wholly controlled by lessee,and tins lease shag not be terminated m whole Or in part,nor lessee held ldble in eveentual-ties The time du far(allure to eoring width I genn seen be prevented from conducting drilling or reworking operations during Inc pnmply with any such atigaeons or covenants if compliance therewith is prevented or hindered ary retinor a of:is te in rase,undert theme conting of the ences above rioted,shall be added to the primary temp of Me lease. Lessor Hereby warrant:and agrees to defend tine tide to he lands described above,and agrees that the lessee,at its option.shall have the rfgnt at any(ma to pay er lessor,any mortgage.toes or other liens existing,'evied or assessed on or against the above described lands in the event O/default of payment by lessor and be subrogaled to Idle nghrs of the holder hereof.and lessor hereby agrees that any such payments made by lessee for the lessor may be deducted from any amounts Of money wnatt may become ace the lesser under the terms of Ines lease ta.This lease and all its terms,conditions,and stipulations shall extend to and be binding on all successors in interest.in whole or in part,Of said lessor or lessee. 18.With respect to and for the purpose of this lease,lessor,and each of them if there be more than one,hereby release and waive the right of homestead. 20.For the above consideration.Lessees granted an option to renew this lease under the same terms and provisions for an additional Three(3)years from the end of the primary term hereof and as long(hereafter as dl and gas is produced from said lands or lands pooled therewith. Lessee may eXerese this option by paying to Lessor the sum of$35000 per net acre(as bonus ace paid up rentals)prior to the aspiration of said leans. WHEREOF witness our hands as of the day and yearfest above weften. a , 11111111111111111111111111111!1111111111111111111111111 Peggy . e ded woman doming in her P . C9 sole and se rate property 23100153:@3 p061162.40/020100 16.0006/24/2610 0 0.0012:41 SteveWeld Morena ClerkCounty 8 Rec o rd er IN WITNESS WHEREOF, aI•.have hereunto set my hand and affixed my notarial seal the day and year last above written. Ceij STATE OF o� .) INDIVIDUAL ACKNOWLEDGMENT SS COUNTY OF gmetf I tr. On this IK, pray-ol Ott. 2off,Cetore me,the undersigned authority,personally appeared Poesy J.Kof in a married woman dealing In hiss nd sooarllrirpe5nv.known to me or emcee to me by satisfastory evidence to be the persons whose name Is subscribed to(ha foregoing.estrumenp and aCNlfp'Nk ,;;90;oy'i(lIJ!Jae same far the purP055n merrtin staled. • en}\, •tea ITT•�''�� Notary Signature '�� Printed Name of Notary', e 3a i NolaryPutllic for NeSlat of lOre.G •-"' > Far . Residing at: 24o1 t, u.T br leer 4It!Ks a RyeS2y' tlolAMla mOJel My Commission Expires: When Recorded J.6,1.YIIIwr.s e'xyv`x` • P LoneTree Energy Si AssObales.LW 'e,e ....... , 3 Wes10ry Creek Circle I ` �: wive LiNeten.Colorado 00120 ,. ��oTARy.',. 0 0 0 ,COL 1/4 OF sy 7015 06/ IINIIIIll III!I II Mira 111111111111111 3701530 06!24012010 12:41P Weld Cgunry, CO 33700:5336 of 3 R061/62.040120100 16.00 0 0.00 Steve Moreno Clerh& Recorder 1(7 Exhibit"A" eMade and entered into this 5'"day of April, 201O by and between Peggy J. Koskie,a married woman irk" dealing in her sole and separate property, whose address is -145 0—NortMEeeMY--eed -7i n Lit, WeliNngtenrC9-80519 hereinafter called lessor (whether one or more), and LoneTree Energy & Associates, LLC whose address is 3 West Dry creek Circle, Littleton, Colorado, 80120, hereinafter called lessee. (.- r). (l1 , CO ?0ccj_, TOWNSHIP 10 NORTH,RANGE 67 WEST,6th P.M. Section 12:E/2 Containing 320 gross acres,more or less 1. Lessor does not waive the right of homestead. 2. Lessee is required to receive Lessor's written approval prior to installing additional facilities to combine external gas or oil supplies with what is produced at Lessors wellhead, HOWEVER, NO REASONABLE REQUEST SHALL BE DENIED. 3. Lessee agrees that the existing water well on property must produce the same quantity and quality of water post seismic and drilling work as at time of contract signature. Lessor shall be responsible for any and all testing to determine the quantity and quality of water produced from said existing water well, and will be given 30 days notice prior to start of Lessors work,to include seismic work or production drilling work being done on Lessor's property. 4. Payment from Lessee shall be check either delivered by mail or trackable courier. 5. Lessee shall pay for any damages including but not limited to land,improvements or crops caused by Lessee's operations on the premises at a rate agreed upon with Lessor. 6. Lessee shall return all grounds to production worthy state as property was able on signature date of contract. 7. Lessee agrees to compensate Lessor for all surface damages on the lease premises resulting from Lessee's activities in accordance with oil and gas industry standards for the area,including but not limited to damages for well and storage locations,roadways and pipeline easements. 8 Lessee agrees to contact Lessor prior to the onset of any surface disturbance associated with exploration activities on the leased premises, and Lessee agrees to consult with Lessor regarding the placement of ingress-egress rights of way and pipeline rights of way. In this regard,Lessee agrees,as much as is practicable,to the use of existing roadways on the leased premises for ingress-egress and for the placement of the pipelines 1 fool below plow depth,and Lessee agrees not to drill wells or place pipelines or power lines within 200 feet of any existing house or barn without the written consent of Lessor. 9. LESSEE AND LESSOR SHALL MUTUALY AGREE WHERE PIPELINES AND ROADS ARE TO BE PLACED BY LESSEE. HOWEVER,NO REASONABLE REQUEST BY LESSEE SHALL BE DENIED. 10. Lease will exclude any and all gravel and rock. Gravel and Rock will be considered a part of the surface rights. 11. When a well starts producing and monthly royal payments are started, the reasonable costs associated with the production of oil and gas will be broken out along with the stated amount of product sold, the royally percentage and what well(s)the oil/gas was produced from. 12. If an input/injection well is going to become a disposal storage well, the disposal well depth and operations will be controlled by COGCC. t I{11 �.a\0 13. Should the input/injection well(s) become waste storage welt(s0, the Lessor will be paid for the storage of r1a`6 the contaminated products, a+ LL rare. ,Rtt c,oily agrvenb1¢- 6ohcjr&'ri C-€Nor etrid Lessee, 111111' 14. Royalty payments will begin per COGCC Statue(s),and will not be longer than 90 days after production and sales of minerals begins. Signed for Identification /2noi day of (,/io/'l i .2010 Peggy Y osJefe, married woman dealing in her sole and sepa ate property ,. ^ '•^a°�•�'� 53T PAID—CTP RocNy MowiWn 1a99 �"""°^Ra°,a°" OIL ANI) GAS LEASE s��K lT9cQ �e;» �s 1957o n1�RrrlG'„�,�r7Rca� 7; WEC/SNGroN,zo8os9�P rriis�wRZEa+=rvT,maa�a��a<n:erea mro enrs�uay or ayni.;4±9,oy ana omw�e�,� n o K k� rtiea a n i n� i a aeoaa�e u.aµ•.�y wne;e auarasa•, nemiwim�cmF>a�essor�wremer one or more),ana S Tr Ene�nv 6 Fsaociat24 L4C wM1ose mS;ga55i5�Wy;tprv•�r_�MNCIrcIcyLlttloton Cylon00 BOt30.IferemdltercB��etll�si�J. WIfNE5:ETFC � f TIIYI'es5V1.IOl.In4.f11:On8idPlll�On OI•••TCN�NU MON�'.'.w1I�aR(510 UC�ill M1�IT"1{M'J,r¢<aiP:01 µ1Ncl i5�C1eLY��Mr)(1vllP��eO.1n0 01:(li.�9:t`CI1:4n4 0! ieeseu rierainonc�uHei:n,nereoy g�xnu,aamises,icax>>r.a ro�excluvveiy unio�c�.eo�he lana:tle.cnwtl m.•:ovv br me puryo:e or invesi�9ann9.P«-0��^9.��nbring (PYS�'FnyAw�dntl ullID�mclM1otl3).Clillin�.opC�OmJ la amY proGuC n9 oil or glls.ur Wl�("es.feF,nLtl Oolo•v1.IY'u0:cr min I�e ri901 ro rAn51rv41.�ntl m1n;.nn P�Patinef, ll)Inpnona.�nU eltcb.c unes.iJnYs.ponOs,�wMwaYs,u�anlr.e9Nprtmnl.ana xlmcluuh thewon lo PrWoce.se�e and:aNC ca�e of 5.10 GI anU 9as(wh;ch::gh!1M1a��.nc�u0e 'a0¢C!-a'•Il d 119�:.O1.wYv df.tl QdYCR.Mt rpr�n�rn9910.1�tl rtJri5$lfpnl SJid�dn05 OY I¢ti5Cv'.Ot IlS.ti5�'Jf.C25.39l'MS O[0¢�I(ICe5.n¢C9tiS]I`/10��S5WO:C�'.hIM1 II1C WnsVucU4n an0.md�nlnnau�C 3f�ucb 0'Oelin�u^,I¢iepF.onc Jf.tl eleCNc IInCs.L'nks.O��tl%.�roddvqys,p4 nb,�IuipinGi4 lnd YVUCWfC5 Cn saia ian�9l0 p(�EUCC.90v¢aPU f.l'Rl'W19 aI11�U UII d:�6;ia9�.�lnJ Il:e�:Nc1U9.�2�IqM1I'D�n�!YI di!',9.L.W�lCf.OnnC Jntl OI�CI�luitlf IiOni any SCVt[�'i�W��0 sub5uf(3(:�311010.�t114 dlly dn0 dll J'Jf^t n9hl'v ilAi pnvdagas n4 zssary.mW�ent�o,ur comenient for�he emnnmlcul oG�'�'atian oi eam�antl,a�j�oi wn�o��Uy wnn�Ig^9�'gaten m V�e Cooanry ci W�Id'Slole o�Cu o Eo o(ai and gaf anC ih?Inl��on pf au qns,wa0.rc,cn�,and cl�er IIUGs into 11�e s�6vmt.e sh3la,,a'.0�d�tls e�;i � desc�IDad as fellows,[ow+if. -O NS"iP 1_. �. 6R�GE Sl'Nc5T SiM1 A M �I�III��'I lllill II�IIIIII'f III II�I�II II��II'I III�II�f Secllon 12:EI2 SEEE%H19R"A^ATTACHEOHERETO0.NOMADEAPAftTHEREOF 3701537 Ofi/24/2010 12:41P WeldCounry,C0 anticuntaining32o.00acres,moreorless 1 Of 3 R 78.00 0 0.0U Steve Morena Clerk&ReeoMer �n Odtltlion tp Ine:an0 des^JNe�aEOve.Ics,v��rere�y 9�anls.,dases a�W f<ts exGasivcly uneo I�ssee.to IL`¢samc ex:r.nl as II specili[ally Iteunbc0.�anrts wV�i� 3¢•ownpJ Or C2imM 11Y�es50:bY one o(t�v"o�!U�rn(f iCuson>:(1)d'A!a�'As dnU�IU�Is afquRZd or rCh�nCJ bY IMY'ar pY dvul5wn.accRbP'1.mlktlan N o1�eNase as IDe BSuI; Il(J Cl:dl1^yl'�!1�112 W4(1E31iFn p!CGI1�L'lIII1B 0��IIY�tl��pf$I�fdT��lVf!MI19 O�dC�p11�119:I1C IdlIE6 JCSCII�CC�1EG�^_,(2�211 liPl(Idl1 IdI1d5 d�(I IY�I1�5 W��C11�ll¢0!IWy�P Inu�en�,appmlenunt:e�atca w aW�bWed�o iessor�n any pxe,sucam or riacr�ravcrs�np oi atljoinira me IanUs JesaiboG aboro by Nnuv c�essois ainersniD ol ine 4mG Cueai�eG atove;(�)all:avEs incluoM:n any ivaa.easemen[or ngM1FaN.vay Vaversng or aajoinn+q tno NnEs OescnbeJ itovu�nn:ch are or may be inWnnt aAPurtenxot. �elatect m aq�0utptl to:e5Sur py vin�e of�flssors pvnersM1�p ol!�o�and desccON aCovu;an0�<)afi 5M1i(�.`.of'su_'6 Y.lantl utljacent or conu9�a+LO��e'anEs�e5cnCW abcve owiu�J oi acqmred uy te�nr InmuyO aavalSe passossmn or o:h.et;�mil2r:!alctOs ol P�e Yple In xniJ�itie�ana,are�cotea. The:ami m��s u5ttl'�n Nls�ense vl:all W mlapreteu lo Inc1�Ce any I:�qula t�ytl:oc3��on suo,hnces wMcll otCur naNmlly in Me eatlb,inclutling Orip 9a5ofne or m�z�namr;n conuansaw mcamrN M1vm gasximou�iexart�o mawhclvnn9 process.IDe ta�n gaa as userl in ipis lease shal�be Inlerpretetl to include any subslance,either mme;rs��0%e o!nmcomeusiible.wnren is p�Wuced�n a na:ura�;ia�e«a+��bu oann antl w�icn mamlain;a gaseaus or renlletl sfate a�ord'mary temperaWra and pressure r.ondeions,x:tluJir:g Ow rmi emv�aa tonelium.nivcgen.aroon Wox:ev.��y�m4e�sulpM1'ee.mai b G m.em�ne gas,casingheatl Basantl sulpnvr. iub�q W t�e Ol�er p:pns�on•f IieRn�cmiNwCO,In151ea.v'e a�dll mmTn in!crce hr J:dtm o!FivO(51 y�'+��9 ROm Anrll 5 2010(�G�Ein WIiM'p�:mary IB/Io 1 d0U d4lpli�j Illl`ICJI101'.IS U�I�11101].]5.a!CR�Pf EI N2T.'5 Plp1112E(iO�ll Ul81id4fd(1(H�ISr`S Of CIII!i(11f 00=�d1i0M151fCCO11Y�1u4Y51�pf05C�:11!✓y.�'O!O�Na�J�NIS PJSC.d WBII compl9:el lor Ino praG�cUon ef Waltlea n:tNaW qae s�all ce E.rv;mea Ia ae p�aluv'�n0 9�unCot:Eis leye at aA iimes wM1mi tlewate�inq a!tl�e aal seams�mm wFrtn in� cOd10^C m2Nane.'pl9'.RII L2 pfOOucM�5 P:Cun�nq Po�purya5P5 J':M1I5!ea9¢.'Enlllrg Operdtioni 91�a11 inCiW C oGetdA0n51o!IM1C tlnllin9 4t u nCry wPll dllU apa�35ons:or tM1C ravaoMinp.COCp_�tnnp or plu9gmy oazk ut a aietl o��ole o�oNe�cucraua�.wnJut�eC in an?Hort:o esIa011�1y�CSume or/e-¢s�dbl�s�Pro0uc0on ol�II an0 gos:tlnNnq 00?�3[ieRs 5M1all be consiEer3tl eo be'conUnuo�sly prosec WeU'A nol morc t�an onp nunOre�:x'en�'1�20)daVs s�nll al3pu N:lwaun�M1e comp�euon and aWnUonmenl ol one v/fll Of ilOlH U11G I�IC COI�IfIICIfUf11P�1 O�Clilll119 OpfldCe�v in d�01�0!WC�I3(�OIC:EIIIIi�G Q�l^_i�l!10119311f111 CC OCEIIIPD IO b2 fA1fTCI1C04ICt d(IOw WPII d�SULII ARI9 TS�C4320 I`.l5 CC�J��IhC 1b115V�C40�O�NC N'��I�:(Q 10..'1�10�Of��U IOdE vMil�C�OViEU5]CGCY`W 1119 WCII6�tY'Lt21i011..11fU Oe�llitl9 O�Cfd�^.0�5'J�13�1�l�l'C(�IBU 10 OC WRITv'(�CCO'.VIII1 250ec1 eO2wohm9.Ce!•M-��0�P��Hd�ng Otl:[w�N�?�Op^.fdlian5 VlrOuqeE�n an LI!all!o ingUm?or tC351aGRi�DN4�cGon ol dl an0 905 d�wh Lme as kss�'C�aY Ine rcryisite eQumiran�(or cucn ar:mlions a�me w4ivta. 2.TTe 123see sha�l Oe�iver lo Ilia esedil of Vie lessor ds royalry,Ree of rusl,in�n��e ianks or in t�e pipB line on @e leasetl plBmi5es la wM1ic�kssee may connect Rs wells I�e epual fil�een percenl(15%)part Of all ail produce�anG savetl Vom ihe�Based premises,or Ies5ee may fmm time to�ime at�Is apfim purcM1a%any myalry oil in ils pOssession,paying Me maiket pnce Inereof pteva�ling Por oil of fikegrade anC giavlry in�M1e Oeltlwpere produce0 on I�a tlale oFpurcM1ase. Tne iesseo Nm�paY�Bssor.as:oya�ry,an gas,�nc�u•Jmg casngne.v]9as or a��ar gazao�r.subs�an�.pmducN vwn�t�ieasetl premses ana m'0 cr mee utt ihe p:emm,e:or used in�M1n manuGCNm of�asd�ne o�oiFer O��T%u[ts�he marke�vaWc al Ne'xu�'1 ul flleBn Perwnt(15"6�ot No 9us sold Or u•v_4.p�aW�e�'hul an gas;old me royulty;nall cu fi0ean percn4(15;'e;al Ne amounl reabm_o Ira'n sucn sa!5.Tne amount rcnl¢aJ rtnP.mc;sla af qas onatl m t^e p�',w e;�uclsnYJ ay Uo,ns aa�c9 r/Jl��il.[I¢f•tCIC'U iP10 ilI�JCUJ Idllti b'/�OJYC'B JfC d fjSS w1�C�J5l'i(O�SYUI I2fi11 dll'.1 l.�E!!'wKll C]I'��GNL JS NC CV9[011N�Y i(�IF.B IIIQYSS".PIIW]�011 ill^G�:1�^i1M 3TOY111 /[UtiVP.0 b}11;59CC.]IILl.JNII18 tlllh'[�O.lppliGiGB llqVl]�O^'OIOCl3:1�E 3f[L!iip'�Ilpibll Ji��y]�'IWp'Q pfK2 d0�u5tTCY1�5 SpCG�M i115UC11 LO�IfJf.l M ICtJUli:Oly Olt1C�5 III Ino event:esseo compresses.Ven5.punfin.s Or tle�yUra:es sucn gas(w�et�er on a att'J+e icase0 Oremi;a)or.ans(.ror:s ges e�l Pe ieacN pemise5,lesme��n wmpuung m�alry hxwor:tlr�muy Ce�uC(mm sucn o��ce a reasonu0le cnaqe�o�eacn o1 oucl�(mvllons oErtom�atl.�ntica�n9 355oUaleO:oa�. a.i�5�s a Oai6�up le.xce an<t Jn�'vv�mnslCe�auen'n9t ief�e��Oo�ie anG.anwal ronla;5 nare OeCn Oaio•,a Icawr rn aErenCe lo xe^p Ina I>.vse m full brce and eliect NmuB��+<ICe�nmyy tu�m.In consitlerauan o'I�v px'P�tnt u!suv'li ws�consiCerallan a�tl aavance a�nuai mnt0ls.'e9sar a9rees I�al iessee abal�nc:be oEligaleE, excepl as oNcreise Oiovke0 nemin,m mmrne�ce or co�onue any oGe�ytiuns�uon9��o��mary�e�m.Lesiue may a�any ume or umes tlunn9 ar a4er Ne pnmary lertn 511IlElIQBl1I115 i2dJC�5(0 dl�'N�111Y OO�Iq1f 0I llltl'�3f.0 UC9[flt'H dWvC,3�E�5'O]�y 51t.31d�f SV�IU1�1.by yClryd��lJ IO k5vIX 0�b/Illi(I$OI�CCOl�:1IB:Pd4P O/lEI2d9E9,dlR1 be�e��evetl of all aUuga�ions�Oerealler 3wain9!o!ne azreago surrenEei� �t,rVry pdymo011 rCyvirCd 10 tU matl¢:o IPSSurs OursuJnt to Ihis 19.158,o@2f c0an Ne Oay�llBnt Ot roy614c;,mpy bc pdi0 Oy�R.tsee:a 0a!BSFAf J110�^:50/`+f+N�t .n m" yan�..�� lar its eumawr w saeeesxes. y any CBnk'niID w11ic01t may ce:M1e�geo or cansoliUa�a,onrqtin,ucfaxa5 te ils bwme5s a4s¢190r xny pa�t tnermt Ey purcnasa or otM1ennsel`^�'��h sn311 mnlinue as Ine tlC005�1Ory!¢gBfd�Cis U(C1`Bnge�1111119 G'M.B�511�p�I Sd�tl'Olttl�::hR 0'I d�tl�Ju n�l%uCll yayl11Bni5 may Oc mdCC�'N:M1.CF..JCn�N dtdit.��H:IH{p!CHIvv�N On 0�P::U�d 'M1C�lue OdLL"Jf iF31 pdyT.Onl.Any pOyTClll`r^A RNOC 5��II p[O�ntlln�O�111¢I12il5.ECVI9yC5.V,[KVICIC dCm:niS�d:O(5,antl O�+OIIN IBP�45C�21�VC±Ot'Ca9M�nU OII IC95Cl,'�SVCCPS'v'O(S 111 IIIiPIQ5l Ol GI11C649f9 dl9�f]M1S 5 It,at J�e en0i2!ion ot IM1e pnmJry tertn ol:his'easo,orl or gas is cal oem.9 VmGuR�d GJm IRa IeaStlC prerns¢s oul lessee is Illen engagM�n Milling oONatlans, ��i5'aast i�IDI.VnOnVe In;c:Ce 5010�9 as�plLng upeeaU0n5 d�c conlin�ou5iy pro98CutNJ.aM d pto0u<:iQn Of u�l.:g36/esulls from 3ny 9UG�ONl:ng o4'-'��ba�s.Jvs:eace ;naA wminuc in ior..a w�m9 as o11 or gaz:✓un ca pmdvice0 frem Ne ieBscU Vrem�us IC alter;nc xap�raUon u�:na W��1yY��^"m ol�nis�ease,yWutlmn w�M1e�casea v�emses s�ou!0 cease:or any uiusa Ims�easc:��I�nu term:na:e�l;esue�s iben en�yeU In Jii0in9 opemlians,or.vAmn om nunorotl lxenry p=0)days etler:acn;oc� 0.sxticn u�plo�uCLa�CCmmencfs Or;esvmes�nlling operaLLon,,aotl tn�s leape snvll:emnin In lo¢e 50�onq as CNIin9 cpsrallona are mnUnuously urosecmeU,ana i' proJucmn renulia ihere�rom.men us b�9��ereaRer as m�o�9as�5pmtluceU imm No laased premises. !.I'al any 1��4.91111v�OC(0!¢0�Jliur I�C eiFua4on O(If.C 0��"'�ry��l Ini3 if:I5c,N^:��i5 d w9:1 fd�dCl(1�)1 pc4uC:MJ 011 p 9S Un I�nE]U+veeBd Uy'11i5'C]se, un olnar lunac�mlh wnkM1 Wnns�eraE oymis Ipazo ara poo�etl or uni�zeC.bul ine we�l is f�uF1n.whelner Uafwe af a��er pretluc�on Nemimm,3na i0b�a.ue ie not tlemq ITdif.Idlf.Cfl OII�PMI3O 9$PIOVIEpd I10(B:I�.W3I2d60 91131�M{iOfT�I1Jl�(V�IP95�BIBd9G0 Oy IB99BO)d!��l Slldll IIB4B��<Iec39 bB C0116iCaf0G{IIOI OJ M�}l5�S bO��J PfOUYCBE tmm lantls ceYA20 by Mis:ease Janng all�im?s while;I:e'xell is so 9F.u41rt LosF�2'+Y.all u54/e.M1so�ab!e dlli9eiKe b md�kBl Na eil of 9�8 fdpd0:e ol�emg(�aJucetl Irom NCM1:.t1Y1'l11'NEiI,OU{]11:111 M IIfItlBf�O OCIIB�t1�i110 Ti�NCI'I'C��I O!9df Y�C¢!:QIT9.CO�tlICOI15��LlCIIT51a111G'.i W��CM1.N Ip5$?O�5�UGgR.'J��I tlAPfCi6��ll§OCG I�i!11,d�C unsa6sfauory.WM1en Ihe IPase is canllnuetl in�o¢a��n ihis manne+.�enea s�a'�I pay or londer lo Ne It9'�or ar Insaor';.�Uessors or ass:9ns.an amaoni nqml lo St UO pc� yPdl�l.Y fi91 Ti�Clli lCN fAVC(L�f1 tly iFC'�[d5B. $LC�(iyI�IM6 il'..tl�bC IIi9tlC Otl VI�CIYIC�I11C SIIYI-I�'Oy�lly pJY111E�1 O�IC..t5 EO(��24 Jd�Ow.IIBAY CCNIIirtQ JIh'f II�B 9��11ld4011 01 G(1[hY�idlPE lW8fl1'/��20�Ld'/S'!OT 1Y.9 OdI21hP w011 wd5 S�VI-In,Uf11U54 pllOl IO SYC11 ddlC 011 Of�l5 ROf�I II!2 WPII ifi 5014 0l YSPO d 111C I;d5o i(Q��CtW1Y0 rt:a�.n16:BE]�4 plOvi.1¢t1�Ctem.In'dke manncr.an ai iJCN�e tlJCll sutt:PC�11t10 SbuFin layal(y pdymBlll�3to wnAO suGl wN�NT.a�nc sM1�Min,ieS5fn SCai mOFe pdYment o!sINM in toYa��J'��9dm4 ampunl On�mdnpPL TbB IMT'ShuFin myBlty p$'Rlenl QdIB'5�911 T¢d0I119 21�11iv[f58ry 6ilB Of Ni9:e95f.My SM1u41n royally OayT¢nl mYy W:ntetic Oy casR OnH o�c�acN.ma�chl o!te�arttC Jn o�Cebie Ux snu4ln rpyally CBre.LeueO's iaGure:o p2'/a:entler.ar pmCP1y paY o�lMtlec any SUCh sum snall�e��v��essee '+Jb:n i0�U1B�TaUnl tlu0 bul il i��ll OO:Op0�a1010 bNmindtf 1�¢Ida5B. ].Hlewar owns a lesse�In�erest M I�e aoove aescrmeU IanG!�an Ne^�tire an0 untllvitletl fee simple eslate Nerein,IM1en I�e myelties,irrclWin9 sh�-in royalry, herein provitletl shall be paitl lo lessor only In lhe popvn!un wnic�k�saoro intqml beau to[M1e whale antl ufMiviUetl fee.Any in1ere51 in produNon lrom the IanGs OescriEetl herein M whicM1 U8 inlEYes1 N Ies90!m0y Ue subjaU 31�a11 Lro detlutl¢d Irum tM1c royd�lY h2feln re5arv¢tl. e.lessee sliell have the rigM[o use,!ree oi cost gas,oil antl wafer produceE on saM lana for its aperotbn Nereon,eHcept waler Rom wells anG reservain o( lessor.Lesaee 5M1all�ave ihe right at any lims lo remove all machinery an0 fixWres placed on seid premisee,incluaing ihe ng�l N tlrow antl remove casing. 9 lO5ser.>�all paY�a��<<oasonable amaunls fo!dama9es causetl Oy itS opemuons:0 9�a�amg ctaps an sa+E ianU.WbCn r6VuosIM by lauap lassee sM1all Ovry es plpzlinev vnim iraverse cullivdlM iartls bwow plow tlepN.No well sM1all Oe dnlle�nea�er Rrsn Mv nunG�ed(Z0o)�eet b a nousc w Gam now m saiG premises, �vit�oo�'+rtilten wusent ol IPSso+ lussee sM1a�l�ave��o fighl af iny 6me(�ut�rot Ihe obligulion),ro�¢mo:e all im0�a�amants,��tichmery.ana litlmee Fls[atl ar arECt2tl by �esseeon saW qem.ses.�nUvain9�he rgnt;o n��in0�Pmo�e�'asings. 10.LeSic2 6 M1e�eCy 9rven IIID n9�1 antl yM�M:tl any 11mu:m0!!om LmC:o Ilmv`a5 d IPCW��q��9�4�'��e!M�ort Ot dtt]r pratluc4P1,as lo eIl OtdOy Part oI1M1e IanC tlescnbed aCevo ana as'lo+ny ene m mo�a vF Ihe IormaLons 1�2rpund¢r,lo�xwl onmilue 11fv`!easeM1oltt c.ta�n�n01�e mu+eral eslale com�eJ Oy this lease wil�ol�er Idlld��Bd5B Q!I^0^aC5�il I�C ilIIT¢tliHtP NGf•Ily�Ot 111C�IWYfAon OI ql 3fid�J5.Of iCp'1�IIO�y�Uf NB plGdllCd011 01 l'it110�.'��M1Cn iil IQS]C¢i i�40m6lII Itl6�CC2353n'O! dtlV152b12 t0 d0 iO..lnC�fe^5{1CC1�VP 0�WTCII�CI IYNC�Iy 311�i�.lt!O 1�I5 CMCf5 WI�II f�4�BCl IU YYLII GI11f1!�0��1.I?356 0!ICd5C5.LIhOM'I«',U11:15 O�Q�'OVOIy IOIITfd IO 111CIUDP fonnations�wt oroCuung oi�ar gu may x mmm�oa�.o oaduQe sucn nmqrcducing:orma�ima, ine�omiing s iemrmmg ol any unp;nai�oe�c<omplislied by lessee executing and filing of record a declaration of such unitization or reformation,which declaration shall describe the unit Any unit may include land upon which a'veil has heretofore been completed or upon which drilling operations have been commenced Production,drilling or reworking operations or a well sbufin for any reason anywhere on a unit which includes all or a pad of this lease shall be treated as it it were production,dniling or reworking operations or a well shut-in under this lease.In lieu of the royalties elsewhere herein specified,lessor shall receive on production from the unit so pooled royalties only en the portion of such production allocated to this lease,such allocation shall be Mat proportion of the unit production that the total number of surface acres covered by this lease and Included in the unit bears to the total number of surface acres in such unit. i1 Lessee shall have the tight to unitize,pool,or combine all or arty part of the land described above as to one or more of the formations thereunder with peer lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and,from time to lime,with like approval,to modify,change or terminate any such plan or agreement and,in such event,the terms,conditions,and provisions of this lease shall be deemed modified to conform to the terns,conditions,and provisions of such approved cooperative or unit plan of development or operation and particularly, all drilling and development requirements of this lease,express or Implied,shall be satisfied by compliance with the drilling and development requirements of such plan or agreement,and this lease shalt not terminate or expire during tire life of such plan or agreement.In the event that the land described above or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan,then the poduction allocated to any particular tract of land shall,for the purpose of computing the royalties to be paid hereunder to lessor,be regarded as having been produced from the particular tract of land to which II is allocated and rat to any other tract of land;anti the royalty payments lobe made hereunder to lessor shall be based upon production only as soallocateo. 12 If the estate of either pally hereto is assigned or sublet,and the privilege of assigning or subletting in whole or in part is expressly allowed,the express and implied covenants hereof shall extend to the sublessees,successors and assigns of the parties;and in the event of an assignment or subletting by lessee,lessee shall be relieved and discharged as to the leasehold rights so assigned or sublet from any liability to lessor thereafter accruing upon any of the covenants or conditions of this lease. either express or implied.No change in Ownership of the lend,royalties.or other payments,however accomplished,shall operate to enlarge the obligations or diminish the rights of lessee or require separate measuring or installation of separate tanks by lessee.Notwithstanding any actual or constructive knowledge of or notice to lessee.no charms re ownershi-of said Lana or of the right to receive royalties or other asymenie hereunder,or of any interest therein,whether by mason of death,conveyance or any other matter,shall be binding on lessee(except at lessee's option in any particular case)until one hundred twenty(120)days after lessee has been furnished written notice thereof,and the supporting information hereinafter referred to.by the party claiming as a result of such change in ownership or interest.Such notice shall be supported by original and certified copies stall documents and other instmments or proceedings necessary in lessee's opinion to establish the ownership of the claiming party. 13.In the interest of conservation,the protection of reservoir pressures and recovery of the greatest ultimate yield of oil and/or gas,lessee shalt have the rght to combine the leased premises with other premises In the same general area for the purpose of operating and maintaining repressurtng and recycling facilities,and For such purpose may locale such facilities,Including Input wells,upon leased premises,and no royaltlas shell be payable hereunder upon any gas used for reprassueng and recycling operations benefiting the leased premises. 19. It lessor,during the primary term of this lease,receives a Dona fide offer from a third party to purchase from lessor a tease covering any or all of the substances covered by this tease and covering all or a portion of the land described herein,with such lease to become effective upon expiration of this lease,which lessor is willing to accept from the offering parry,lessor hereby agrees to notify lessee in writing of said offer immediately,including in the notice the name and address of the offeror. the price offered and all other pertinent terms and conditions of the otter.Lessee,for a period of fifteen(15)days after the receipt of the notice,shall have the prior and preferred right and option to purchase ens lease or part thereof or interest therein covered by the offer at the price and on the terms and conditions specified in the offer All otters made up toand including the last day of the primaryterm of this lease shall be subject to the terms and conditions of this paragraph 19 Should lessee elect to purchase the lease pursuant to the terms hereof,it shall so notify lessor in writing by mail,telefax,or telegram prior to expiation of said Feeen(15)day period Lessee shall promptly thereafter furnish to lessor the new lease for execution by lessor along with lessee's sight draft payable to lessor In payment of the speciaed amount as 0008We/ellen for the new lease,such draft being subject to approval of die according to the tens thereof.Upon receipt thereof,lessor shall promptly execute said lease and return same along with the draft through lessors bank of record for paymenL 15.In the event lessor considers that lessee has not complied with all its obligations hereunder,either express or implied,lessor shall notify lessee in writing, setting out spedgoahy in what respects lessee has breached this lease,Lessee shall then have sixty(60)days after receipt of said notice within which to meet or commence to meet all or any part of the breaches alleged by lessor.The service of said notice shall be precedent to the bringing of any action by lessor n said lease far any cause,and no such action shall be brought until the lapse of sixty(60)days after service of such notice on lessee.Neither the service of said notice nor the doing of any acts by lessee aimed to meet all or any of the alleged breaches shall be deemed an admission or presumption that lessee has failed to perform all its obligations hereunder.This lease shall never be forfeited or cancelled for failure to perform in whole or in part any of its implied covenants,conditions,or stipulations until a judicial determination is made that such failure exists and lessee fails within a reasonable time to satisfy any such covenants,conditions,or stipulations. 113.All express and implied covenants of this lease shall be subject to all federal and state,county or menrolpat laws,executive orders,rules and regulations,and lessee's oblgations and covenants hereunder,whether express or implied,shall be suspended at the time or from time to erne as complance with such Obligations and covenants is prevented or hindered by or is in conflict with federal,state,county,or municipal laws,rules,regulations or executive orders asserted as official by or under public authority claiming jurisdiction,or Act of God,adverse held,weather,or market conditions.inability to obtain materials in the open market or transportation thereof,wars. strikes,Incknrrts,riots,or other conditions nr prommalarmces not wholly controlled by lessee,and this lease shalt not be terminated in whole or in pad,nor lessee held Reel?In damages for failure to comply with any such obligations or covenants if compliance therewith is prevented or hindered by or is In conflict with any of the foregoing eventualities.The time during which lessee shall be prevented from conducting drilling Cr reworking operations during the primary ten of this lease,under the contingencies above stated,shall be added to the primary tens of the tease 17.Lessor hereby warrants and agrees to defend the title to the lands described above,and agrees Mat the lessee,at its option.shall have the right at any lime to pay ler lessor,any mortgage,taxes or other liens epsting,levied or assessed on or against the above described lands in the even(of default of payment by lessor and be sudrogated to the rights of the holder thereof,and lessor hereby agrees that any such payments made by lessee for the lessor may be deducted thorn any amounts of money which may become due the tessor under the terms of this lease 18.This lease and all its terms,conditions,and stipulations shall extend to and be binding an all successors in interest,in whole or in part,of said lessor or lessee 19 With respect to and for the purpose of this lease,lessor,and each of them if there be more than one,hereby release and waive the fight of homestead. 20 For the above consideration,Lessee is granted an option to renew this lease under the same terns and provisions for an additional Three(a)years from the end of the primary tern hereof and as long thereafter as oil and gas is produced loom said lands or lands pooled therewith. Lessee may exercise this option by paying 10 Lessor the sum of$350.00 per net acre(as bonus and paid up rentals)prior to the expiration of said lease WHEREOF witness our hands as of the day and year first above written. Jelqi°k� r /S4 )w1U Scott D.Kosklo,a married man dealing In his sole and separate property IN WRNES_S WHE�REOF,I have hereunto set my hand and affixed my notarial seal the day and year last above written. STATE OF LijI,OYTA,eto ) INDIVIDUAL ACKNOWLEDGMENT COUNTY OF L kar.,YlAitir 1 ) On ibis 13'"day of f n[ J10 before me,the undersigned authority.personally appeared Scott D.Koski&a marled man dealing in his sole and Ballarat,pogo , ncwn to me or proved to me by satisfactory evidence to be the persons whose name is subscribed to the foregoing Instrument, and acknowledged to me she executed the same for the purposes therein stated. Notary Sgnalur° Printer]Name of Notar,,( G ) Notary Public for the State of_ O Residing at: 2OZf Orc4't -r /I•[! 'P' 494f,K54_0_�lISZ/ (Affix Notarial Seal/Stamp Above) My Commission Expires( G-2Zi^,iO// When Recorded send to: loneTree Energy.Associates.LLC 3 Wrest Dry Creek Circle sI II I1IlI I II I 9 UMetcn,Colorado 80120 I IIIIII VIII IIIIII III IIIIIIII III IIIIIII III VIII IIII IIII 3701537 06/24!?010 12:gA Weltl County, CO 2 of 3 R061/62.04? 16.00 0 0.00 Steve Moreno Clerk&Recorder 1111111111111111f1III MIN 11111111111111111111111111 r1531 06/2472010 12:41P Weld County, CO f 3 R 16.00 0 0.00 Steve Moreno Clerk&Recorder Exhibit"A" Made and entered into this 5'h day of April, 2010, by and between Scott O. Koskie, a married man dealing in his sole and separate property, whose address is 2612 Bison Road, Fort Collins, CO 80525 hereinafter called lessor(whether one or more),and LoneTree Energy&Associates,LLC whose address is 3 West Dry creek Circle,Littleton,Colorado,80120.hereinafter called lessee: TOWNSHIP 10 NORTH,RANGE 67 WEST,6th P.M. Section 12:El2 Containing 320 gross acres, more or less 1. Lessor does not'waive the right of homestead. 2 Lessee is required to receive Lessor's written approval prior to installing additional facilities to combine external gas or oil supplies with what is produced at Lessor's wellhead. HOWEVER, NO REASONABLE REQUEST SHALL BE DENIED. 3. Lessee agrees that the existing water well on properly must produce the same quantity and quality of water post seismic and drilling work as at time of contract signature. Lessor shall be responsible for any and all testing to determine the quantity and quality of water produced from said existing water well, and will be given 30 days notice prior to start of Lessor's work,to include seismic work or production drilling work being done on Lessors property. 4. Payment from Lessee shall be check either delivered by mail or trackable courier. 5. Lessee shall pay for any damages including but not limited to land,improvements or crops caused by Lessee's operations on the premises at a rate agreed upon with Lessor. 6. Lessee shall return all grounds to production worthy state as property was able on signature date of contract. 7. Lessee agrees to compensate Lessor for all surface damages on the lease premises resulting from Lessee's activities in accordance with oil and gas industry standards for the area,including but not limited to damages for well and storage locations,roadways and pipeline easements. 8 Lessee agrees to contact Lessor prior to the onset of any surface disturbance associated with exploration activities on the leased premises, and Lessee agrees to consult with Lessor regarding the placement of ingress-egress rights of way and pipeline rights of way. In this regard,Lessee agrees,as much as is practicable,to the use of existing roadways on the leased premises for ingress-egress and for the placement of the pipelines 1 foot below plow depth,and Lessee agrees not to drill wells or place pipelines or power lines within 200 feet of any existing house or hem without the written consent of Lessor 9 LESSEE AND LESSOR SHALL MUTUALY AGREE WHERE PIPELINES AND ROADS ARE TO BE PLACED BY LESSEE, HOWEVER,NO REASONABLE REQUEST BY LESSEE SHALL BE DENIED. 10. Lease will exclude any and all gravel and rock Gravel and Rock will be considered a part of the surface rights. 11. When a well starts producing and monthly royal payments are started, the reasonable costs associated with the production of oil and gas will be broken out along with the stated amount of product sold, the royalty percentage and what well(s)the oil/gas was produced from. 12. If an inputlnjection well is going to become a disposal storage well, the disposal well depth and operations will be controlled by COGCC. 13. Should the input/injection well(s) become waste storage well(s0, the Lessor will be paid for the storage of the contaminated products., AT A RATE Mt L.1,TV,AL la, A4ldc E4$LE bt'E wilt¢n Les Scra. at_in a. LesS¢e. 14 Royalty payments will begin per COGCC Statue(s),and will not be longer than 90 days after production and sales of minerals begins. ,t Q Signed for Identification ,✓ day of l5rl_+-cx ,2010 Scott D.Koskie,a married man dealing in his sole and separate property Weld County Colorado Page 1 of 1 A-Z Search I Search WELD COUNTYc 19„ f WR t' L 'I ' . - Al!Weld County> Home I About I Services i Contact Us I Property Information yF' .. Weld County Coiorado Mineral Ownership Listing By Legal Desc. for Township:10 Range:67 Section:12 f-4—� ([g 36 53T <Go Back to Search There are no records for this request. I / Go Back ass, 701rS s r,/X4 � ?c30 tt- +Frcz.,q i M-e ";-G.. nf- na:f t 41.z L.,' 44!4. irek Claw, ?® http://www.co.weld.co.us/apps/assessor/ownership/index.cfm 5/21/2014 RIGHT TO ENTER AGREEMENT TO OBTAIN SOIL AND/OR GRAVEL FOR ROAD PURPOSES THIS AGREEA TENT is made and entered in to this 4o*'day of tie; , 2013, by and between the Board of County Commissioners of the County of Weld, State of Colorado, 1150 "a" Street, Greeley, Colorado 80631, (hereinafter referred to as "County"), and Scott Koskie, 14570 N. County Road 7 Wellington, Colorado 80549, (hereinafter referred to as "Owner") WITNESSETH: WHEREAS, Owner is possessed of certain property located at: East 1/2 of Section 12, Township 10 North, Range 67 West of the 6th P.M., (hereinafter referred to as "Owner's Property"), and WHEREAS, County intends to engage in one or more road improvements project(s) within Weld County, (hereinafter referred to as the "Project") and is in need of sand, soil, and/or gravel in order to complete said Project, and WHEREAS, Owner's Property contains sand, soil and/or gravel which County deems appropriate for use in the Project and which Owner desires to sell to County, and 4 -PEAS,- sand-County-desire-tu-t.a i-into-arise-Agee went-to-permit County— - - to enter onto a designated portion Owner's Property (hereinafter referred to as the "Leased Area")for the purpose of extracting the soil/gravel. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, County and Owner agree as follows: 1. ` Property Description: Owner's Property which is subject to the terms of this Agreement is the real property described and shown in the attached Exhibit "A", which consists of a legal description,photographs, and maps. The Leased Area to be mined for gravel is depicted in the attached Exhibit "B" by a diagram and photograph. (Exhibits A and B are attached hereto and made a part hereof by this reference. 2. Term of Agreement: The Term of this Agreement sha 11 begin on the date of approval of the Section 112c Permit from the Colorado Division of Reclamation Mining and Safety (hereinafter "DRMS") for the mining of Owner's Property, and shall continue through and until the date of the final release of the permit by DRMS. At the time of the execution of this Agreement the parties expect that all mining and removal of soil, sand and/or gravel shall be completed within twelve (12) years of the date of the execution of this Agreement. If additional time is needed to complete the required mining activities, the parties agree that County mining activities may be extended for one additional period of up to five (5) years upon the same terms and conditions. The County shall provide 30 days written notice that the exension period_will be initiated. The Owner shall acknowledge the extension notice in writing. The parties Page 1of5 specifically acknowledge that a temporary or permanent cessation of mining activities does not terminate the Agreement; the Agreement extends to the DRMS release of the pez alit. 3. Royalty Payments: County shall pay to Owner a royalty of per ton for all soil/gravel material removed from the Leased Area desert e m aragrap above. Said royalty payment shall be made on or before the last day of the month following the month after which the soil, sand and/or gravel is removed. 4, Owner's Obligations: Owner agrees to the following terms and conditions: a. Owner grants to County the exclusive right to enter access and/or use the Leased Area throughout the Term of this Agreement for all purposes related to the removal, processing and crushing of soil, sand and/or gravel and to conduct reclamation activities following the cessation of mining activities. b. Owner grants to County the right to bring equipment onto the Leased Area which is deemed necessary by County to remove the soil, sand and/or gravel and to crush said gravel as required by County for its Project(s), and also to complete its reclamation activities alter minilig activities have ceased. c. Owner shall provide land for a haul route from a public road directly to the Leased Area; the haul route is depicted on Exhibit B and has been accepted by both parties. d. Owner shall not engage in any activity on the Leased Area throughout the Term of the Agreement which interferes with County's mining activities, with its efforts to secure a mining permit, or with its efforts to reclaim the property following the cessation of mining activities without the express written consent of County. e. Owner shall cooperate with County in its efforts to secure all required mining permits, and agrees to execute any documents required to be executed by the Owner of the mined property in relation to said permits. Any expenses associated with the permitting process shall be borne by County. 5. County's Obligations: County agrees to the following terms and eosditions, a. County shall construct and maintain the haul route described in Paragraph 4.c. above in good condition and shall obliterate said haul route upon the termination of this Agreement, if requested to do so by Owner. b. County shall maintain accurate records of all soil, sand and/or gravel removed from the property described in Paragraph 1 above, and shall make said records available to Owner for inspection in its offices located at 1111 H Street, Greeley, Colorado, from 8:00 a.m. until 5.00 p.m., Monday through Friday, except during all holidays recognized by Weld County, Each royalty payment made to Owner shall be accompanied by a statement of the amount of gravel mined by County since the close of the previous mining period for which the previous royalty payment was made. c. During each year in which the County conducts crushing activities on the leased area, the County agrees to provide up to one hundred (100) tons of gravel on or before the 3lzdav of December to Owner for its exclusive use comruenciner upon the first year of operation by County. The parties agree that the gravel Page 2 of 5 provided to Owner shall be of the same quality and type as that removed by the County. Owner agrees that prior to the removal of the materials, the County shall be consulted to determine from which stockpile on the leased area the gravel shall be removed. If County does not conduct crushing activities durirt aryear,1no eravel shall be provided to Owner. County's responsibility to provide gravel to Owner shall cease upon County's written Notice to Owner that its mining activities have ceased and the reclamation process has commenced. d. County shall be responsible for obtaining all necessary State, County and Federal permits, which shall not include permits for asphalt and/or concrete batch plants. County shall pay the entire cost of necessary surveying for the mining operation. County shall consult with Owner during the permitting process and shall exercise due diligence in obtaining all required permits in a timely fashion. County shall conduct the mining and extraction activities in compliance with the terms of each permit, specifically including the permit issued by the Colorado Division of Reclamation, Mining and Safety. e. County shall be responsible for the construction and maintenance of any improvements required by the terms of the permit. Following cessation of its — mining activities;County-shall-remove-the-impn vements, t.-mess Ownenregtrests that such improvements remain. If County constructs a temporary entrance/exit on the leased area, said temporary entrance/exit may be left intact for Owner's use only if an access permit can be issued to Owner consistent with WeJ.d County policy concerning such permits. f. County shall install a cattle guard at the access point onto CR 120. Additionally, the County shall install a gate constructed of wire fencing of sufficient width to accommodate the Owner's fanning equipment. The County will coordinate with the Owner to ensure that the gate is of sufficient width. At the conclusion of mining, the cattle guard will be left in place at the request of the Owner. g. County shall notify Owner thirty (30) days prior to the commencement of mining activities h. County shall notify Owner thirty (30) days prior to the cessation of mining activities. The term of this Agreement, however, will extend to the date of the - release of-the-parmit-b- the-DRMS. 1. If Owner provides his social security number to the Weld County Controller, County will annually issue to Owner a 1099 to report the royalties paid and/or taken in kind pursuant to the terms of this Agreement. 6. Notices; All notices of Termination. or other demand by Owner or by County shall be in writing and sent by Certified Mail, Return Receipt, or by E-mail with a Confirmation:of Receipt as follows: OWNER: Scott I{oskie ADDRESS: 14570 N. County Road 7 Wellington, Colorado 80549 EMAIL ADDRESS: scottkoskie@aol.com Page 3 of 5 COUNTY: David Bauer, Director of Public Works ADDRESS: P.O. Box 758 Greeley, Colorado 80632 EMAIL: dbauer(@co.weld.co.us 7. Non-Assignment: This Agreement shall not he assigned by either party without the express written consent of the other party. 8. Recitals: Each of the Recitals set forth in the introduction of this Agreement faints a part of and expressly is incorporated into this Agreement of the parties. 9. Approval by the Board of County Commissioners of Weld County: This Agreement shall not be valid until it has been first approved by the Board of County Commissioners of Weld County, Colorado or its designee. 10. Governmental Immunity: No tem! or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections or other provisions, of the Colorado Governmental Immunity Act §§24-10- 1©1 et seq., as applicable now or hereafter amended. 11, No Third Party Beneficiary Enforcement: It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned parties that any entity other than the undersigned parties receiving services or benefits under this Agreement shall be an incidental beneficiary only. 12. Entire Agreement/Modifications. This Agreement contains the entire agreement between the parties hereto and supersedes any other agreements concerning the — subjeui ❑,after addr ssed-iinhis Agreeme-.nt.-Nu uwtluicatious,_amendments,-novattous reuewals or other alteration of or to this Agreement shall be deemed valid or of any force or effect whatsoever, unless mutually agreed upon in writing by the parties to this Agreement. This Agreement may be changed or supplemented only by a written instrument signed by both parties. 13, Acceptance not Waiver. No breach of any term, provision or clause of this Agreement shall be deemed waived or excused, unless a waiver or consent shall be in writing -and signed by-the-party-elaimed-to-have-waived-or-eo seated to the breach. Any-consent-by-any party hereto, or waiver of, a breach by the other party, whether express or implied, shall not constitute a consent to,waiver of, or excuse for any other different or subsequent breach. 14. Interruptions. Neither party to this Agreement shall be liable to the other for delays in delivery or failure to deliver or otherwise to perform any obligation under this Agreement, where such failure is due to any cause beyond its reasonable control, including but not limited to Acts of God, fires, strikes, war, flood, earthquakes or Governmental actions. Page 4 of 5 15. Na Conflict, During the term of this Agreement, no employee of Owner nor any member of Owner's family shad sere on a County Board, committee or hold any such position which either by rule, practice or action nominates, recommends, or supervises County's activities of Owner's property. 16, Severability. If any teuu or condition of this Agreement shall be held to be invalid, illegal, or unenforceable, this Agreement shall be construed and enforced without such provision, to the extent that this Agreement is then capable of execution within the original intent of the parties, 17. Attorneys Fees/Legal Casts: h the event of a dispute between County and Owner, concerning this Agreement, the parties agree that County shall not be liable to or responsible for the payment of attorney fees and/or legal costs incurred by or on behalf of Owner. 18. Fund Availability: Financial obligations of the County payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. By execution of this Agreement, County does riot warrant that funds will be available to fund this Agreement beyond the current fiscal year. No portion of this Agreement shall be deemed to create an obligation on the part of County to expend funds not otherwise appropriated or budgeted for. County will not engage in mining and/or crushing activities unless funds for such activities have been appropriated, budgeted or otherwise been made available for such activities. IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first stated above. Owner Signature: ;G/-' <1. Date: / 7 4 71,9 Printed Name: Scott Koskie LC,dfl <o5 E BOARD OF COUN1'Y COMMISSIONERS WELD COUNTY, COLORADO ATTEST: F. Garcia, Chair OCT 3 0 2073 erw Weld County Clerk to the Board klr 1/42 BY: G l Deputy Clerk to the oard tLF 3° Page 5of5 ao'3-3646 Unified Title Company of Northern Colorado, LLC INVOICE Invoice #: 7947 Invoice Date: 7/24/2014 File Number: 6708UTG Property Address: Vacant Land Names: Scott D. Koskie(Buyer) To: Please remit to: Weld County Public Works Department Unified Title Company of Northern Colorado, LLC PO Box 758 3690 West 10th Street, 2nd Floor l 111 H Street Greeley, CO 80634 Greeley, CO 80632-0758 970-356-3551 Attention: Don Carroll Description Amount Qty Total Certificate of Conveyance $200.00 1 $200.00 Subtotal $200.00 Tax @ 0 '%U $0.00 Non Taxable $0.00 Agent Premium: $0.00 Amt. Underwriter Premium: $0.00 Underwriter is Westcor Land Title Insurance Company Grand Total $200.00 Thank you! ***The information set forth in this invoice is confidential and is being provided by Unified Title Company of Northern Colorado, LLC to assist Weld County Public Works Department in the preparation of a GFE and HUD-1 forms. Weld County Public Works Department is directed to keep this information confidential and not share it with parties who do not have a legal right to receive such information. STATE OF COLORADO pFc610 COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT N716, n A B 'o AIR POLLUTION CONTROL DIVISION o) TELEPHONE: (303) 692-3150 CONSTRUCTION PERMIT PERMIT NO: 14WE1418F Issuance 1 DATE ISSUED: October 1, 2014 ISSUED TO: Weld County Public Works THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Sand and gravel pit, known as the Koskie Pit, located at WCR 120 between WCR 23 and WCR 27, Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: AIRS Description Point 001 Material extraction, handling, stockpiling, hauling, associated conveyors and transfer points. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S. (25-7-101 et seq), TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL APPROVAL 1. YOU MUST notify the Air Pollution Control Division (Division) no later than fifteen days after commencement of operation under this permit by submitting a Notice of Startup (NOS) form to the Division. The Notice of Startup (NOS)form may be downloaded online at https://www.colorado.gov/pacific/cdphe/other-air-permitting-notices. Failure to notify the Division of startup of the permitted source is a violation of AQCC Regulation No. 3, Part B, Section III.G.1 and can result in the revocation of the permit. 2. Within one hundred and eighty days (180) after commencement of operation, compliance with the conditions contained on this permit shall be demonstrated to the Division. It is the permittee's responsibility to self certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit or enforcement action by the Division. Information on how to certify compliance was mailed with the permit or can be obtained from the Division's website at https://www.colorado.gov/pacific/cdphe/air-permit-self-certification. (Reference: Regulation No. 3, Part B, III.G.2). 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after AIRS ID: 12319D251001 Page 1 of 8 Version 2009-1 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 either the date of issuance of this initial approval permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (H) discontinues construction for a period of eighteen months or more; or(iii)does not complete construction within a reasonable time of the estimated completion date (See General Condition No. 6., Item 1.). Upon a showing of good cause by the permittee, the Division may grant extensions of the permit. (Reference: Regulation No. 3, Part B, Section III.F.4.) 4. Within one hundred and eighty days (180) after commencement of operation, the operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 5. Within one thirty(30)days after commencement of operation, the AIRS ID (example: 001/0179/012) number shall be posted in an easily visible location for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable) EMISSION LIMITATIONS AND RECORDS 6. Emissions of air pollutants shall not exceed the following limitations (as calculated using the emission factors included in the Notes to Permit Holder section of this permit). (Reference: Regulation No. 3, Part B, Section II.A.4) Annual Emission Limits: AIRS Tons per Year Emission Type Facility Equipment ID Point PM PM" PM2.5 NOx CO Koskie Pit 8.7 3.7 0.4 - - Fugitive 001 Transfer Points 0.015 0.006 0.002 - - Point Note: Compliance with the fugitive emission limits shall be demonstrated by not exceeding the production limits listed below and by following the attached particulate emissions control plan. PROCESS LIMITATIONS AND RECORDS 7. This source shall be limited to the following maximum consumption, processing and/or operational rates as listed below. Daily and annual records of the actual process rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4) Production Limits: AIRS Production Parameter Annual Limit Point (tons/year) 001 Sand and gravel extraction 300,000 AIRS ID: 123/9D25/001 Page 2 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 STATE AND FEDERAL REGULATORY REQUIREMENTS 8. Visible emissions from conveyors and transfer points shall not exceed twenty percent (20%) opacity during normal operation of the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.1. &4.) 9. All conveyors and transfer points will be subject to the New Source Performance Standards requirements of Regulation number 6, Subpart OOO whenever there is primary crushing capacity greater than 150 tons per hour (portable equipment)or 25 tons per hour(fixed equipment) at this location as follows: [The requirements below reflect the rule language of 40 CFR Part 60 Subpart OOO published in the Federal Register on 4/28/2009. However, if revisions to this Subpart are published at a later date, the owner or operator is subject to the requirements contained in the revised version of 40 CFR Part 60, Subpart 000.] a. Visible emissions from each transfer point shall not exceed seven percent (7%) opacity. In addition, the following requirements of Regulation No. 6, Part A, Subpart A, General Provisions, apply. b. At all times, including periods of start-up, shutdown, and malfunction, the facility and control equipment shall, to the extent practicable, be maintained and operated in a manner consistent with good air pollution control practices for minimizing emissions. Determination of whether or not acceptable operating and maintenance procedures are being used will be based on information available to the Division, which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. (Reference: Regulation 6, Part A. General Provisions from 40CFR60.11) c. No article, machine, equipment or process shall be used to conceal an emission which would otherwise constitute a violation of an applicable standard. Such concealment includes, but is not limited to, the use of gaseous diluents to achieve compliance with an opacity standard or with a standard which is based on the concentration of a pollutant in the gases discharged to the atmosphere. (§ 60.12) d. Written notification of construction and initial startup dates shall be submitted to the Division as required under§ 60.7. e. Records of startups, shutdowns, and malfunctions shall be maintained, as required under § 60.7. f. Written notification of opacity observation or monitor demonstrations shall be submitted to the Division as required under§ 60.7. g. Compliance with opacity standards shall be demonstrated according to § 60.11. AIRS ID: 12319D251001 Page 3 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 OPERATING & MAINTENANCE REQUIREMENTS 10. This source is not required to follow a Division-approved operating and maintenance plan. COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 11. Within 180 days of startup, the owner or operator shall demonstrate compliance with Conditions 9 and 10, using EPA Method 9 to measure opacity from transfer points. This measurement (except for the transfer to a stockpile) shall consist of consecutive readings taken at fifteen second intervals over a 30 minute period (five 6-minute averages). Compliance with the applicable opacity limits must be based on the average of the five 6-minute averages (Reference: §60.675(c)(3)). Periodic Testing Requirements 12. Periodic testing is not required for this source. ADDITIONAL REQUIREMENTS 13. The AIRS ID number shall be posted in an easily visible location for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable) 14. The particulate emission control measures listed on the attached page (as approved by the Division) shall be applied to the particulate emission producing sources as required by Regulation No. 1, Section III.D.1.b. 15. This permit is for the activities specified above; any additional process equipment (i.e. crushers, screens, etc.)to be located at this site must have a separate permit from the Division. (Reference: Reg. 3, Part B, III.E.) 16. A Revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3, Part A, Section II.C.) a. Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year, a change in annual actual emissions of five (5)tons per year or more, above the level reported on the last APEN; or For sources emitting any amount of lead, a change in actual emissions of fifty(50) pounds of lead above the level reported on the last APEN submitted. For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5)tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. AIRS ID: 12319D251001 Page 4 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. GENERAL TERMS AND CONDITIONS: 17. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the Division as provided in Regulation No. 3, Part B, Section II.B upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 18. If this permit specifically states that final approval has been granted, then the remainder of this condition is not applicable. Otherwise, the issuance of this construction permit is considered initial approval and does not provide "final" approval for this activity or operation of this source. Final approval of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114.5(12)(a)C.R.S. and AQCC Regulation No. 3, Part B, Section III.G. Final approval cannot be granted until the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division, it will provide written documentation of such final approval. Details for obtaining final approval to operate are located in the Requirements to Self-Certify for Final Approval section of this permit. The operator shall retain the permit final approval letter issued by the Division after completion of self- certification with the most current construction permit. 19. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the source, in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identified on the permit. By: By: FOR KC Houlden R K Hancock III, P.E. Permit Engineer Construction Permits Unit Supervisor Permit History: Permit History Issuance Date Description Initial Approval This Issuance Issued to Weld County Public Works AIRS ID: 12319D251001 Page 5 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 Notes to Permit Holder(as of permit issuance): 1) The production or raw material processing limits and emission limits contained in this permit are based on the production/processing rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedence of any specific emission control regulation or any ambient air quality standard. A revised air pollutant emission notice (APEN)and application form must be submitted with a request for a permit revision. 2) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1. of the Common Provisions Regulation. See: https://www.colorado.gov/pacific/cdphe/aqcc-regs. 3) In accordance with C.R.S. 25-7-114.1, each Air Pollutant Emission Notice (APEN) associated with this permit is valid for a term of five years from the date it was received by the Division. A revised APEN shall be submitted no later than 30 days before the five-year term expires. Please refer to the most recent annual fee invoice to determine the APEN expiration date for each emissions point associated with this permit. For any questions regarding a specific expiration date call the Division at (303)-692-3150. 4) This facility is classified as follows: Applicable Status Requirement Operating Permit Minor source PSD/NANSR Minor source 5) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.g poaccess.qov/ Part 60: Standards of Performance for New Stationary Sources NSPS §60.670 - §60.676 Subpart OOO 6) The permit holder is required to pay fees for the processing time for this permit. An invoice for these fees will be issued after the permit is issued. The permit holder shall pay the invoice within 30 days of receipt of the invoice. Failure to pay the invoice will result in revocation of this permit (Reference: Regulation No. 3, Part A, Section VI.B.) 7) Unless specifically stated otherwise, the general and specific conditions contained in this permit have been determined by the Division to be necessary to assure compliance with the provisions of Section 25-7-114.5(7)(a), C.R.S. 8) Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of a condition hereof shall constitute a rejection of the entire permit and upon such occurrence, this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and final authorization by the Division on grounds set forth in AIRS ID: 12319D251001 Page 6 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 the Colorado Air Pollution Prevention and Control Act and regulations of the AQCC including failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division revokes a permit, the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. 9) Section 25-7-114.7(2)(a), C.R.S. requires that all sources required to file an Air Pollutant Emission Notice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon notification, annual fee billing will terminate. 10) Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of the AQCC may result in administrative, civil or criminal enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C.R.S. AIRS ID: 12319D251001 Page 7 of 8 Colorado Department of Public Health and Environment Air Pollution Control Division Weld County Public Works Permit No. 14WE1418F Issuance 1 PARTICULATE EMISSIONS CONTROL PLAN FOR MINING AND PROCESSING ACTIVITIES THE FOLLOWING PARTICULATE EMISSIONS CONTROL MEASURES SHALL BE USED FOR COMPLIANCE PURPOSES ON THE ACTIVITIES COVERED BY THIS PERMIT, AS REQUIRED BY THE AIR QUALITY CONTROL COMMISSION REGULATION NO.1, SECTION III.D.1.b. THIS SOURCE IS SUBJECT TO THE FOLLOWING EMISSION GUIDELINES: a. Mining and Processing Activities -Visible emissions not to exceed 20%, no off-property transport of visible emissions. b. Haul Roads - No off-property transport of visible emissions shall apply to on-site haul roads, the nuisance guidelines shall apply to off-site haul roads. c. Haul Trucks -There shall be no off-property transport of visible emissions from haul trucks when operating on the property of the owner or operator. There shall be no off-vehicle transport of visible emissions from the material in the haul trucks when operating off of the property of the owner or operator. Control Measures 1. Adequate soil moisture must be maintained in topsoil and overburden to control emissions during removal. Watering shall be implemented if necessary. 2. Topsoil and overburden stockpiles shall be compacted and revegetated within one year. 3. Emissions from material handling (i.e. removal, loading, and hauling)shall be controlled by watering at all times unless natural moisture is sufficient to control emissions. 4. Vehicle speed on unpaved roads and disturbed areas shall not exceed a maximum of 10 miles per hour. Speed limit signs shall be posted. 5. Haul roads shall be graveled and watered as often as needed to control fugitive particulate emissions such that the above guidelines are met. 6. Reclamation works and sequential extraction of material shall be initiated to keep the total disturbed areas at any one time to a minimum. 7. All disturbed areas shall be watered as often as needed to control fugitive particulate emissions such that the above guidelines are met, and revegetated within one year. AIRS ID: 12319D251001 Page 8 of 8 * DNR COLORADO CO "j' Division of Reclamation, Mining and Safety Department of Natural Resources 1313 Sherman Street, Room 215 Denver, CO 80203 July 24, 2014 Jay McDonald Weld County Public Works 1111 H St. Greeley, CO 80632 Re: File No. M-2014-024, Koskie Pit, 112c Decision Letter-Performance Warranty Request- for Construction Material Operations that do not Require a Financial Warranty Dear McDonald: On July 24, 2014,the Division of Reclamation, Mining and Safety(Division) approved your 112c permit application. No financial warranty was set by the Division for this operation. However,you must submit a performance warranty in order for us to issue a permit. We have enclosed a performance warranty form with this letter for your use. Please have the performance warranty signed by an appropriate official, notarized, and return it to us. PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR PERFORMANCE WARRANTY. A PERMIT CANNOT BE ISSUED UNTIL WE HAVE VERIFIED THE ADEQUACY OF YOUR PERFORMANCE WARRANTY. If you have any questions, please contact me at (303) 866-3567 Ext. 8124. Sincer ` p / / g& P er S. Hays Environmental Protection Specialist Enclosure- Koskie Pit performance warranty form Cc: Tom Kaldenbach, Division of Reclamation, Mining and Safety Barbara Coria, Division of Reclamation, Mining and Safety lt Cat ne Cr 1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director r lase x* STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 COLORADO DIVISION OF Denver,Colorado 80203 RECLAMATION Phone:(303)866-3567 MINING FAX: (303)832-8106 _&_ SAFETY John W.Hickenlooper Governor PERFORMANCE WARRANTY Mike King Executive Director Virginia Brannon Director Operator: Weld County Public Works Operation: Koskie Pit Permit No: M-2014-024 This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117, C.R.S., of the Mined Land Reclamation Act and 34-32.5-117, C.R.S., of the Colorado Land Reclamation Act for the Extraction of Construction Materials. Any alteration or modification of this form, without approval by the Board shall result in the financial warranty being invalid and result in the voiding of any permit issued in conjunction with such invalid financial warranty and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to sections 34-32-123, C.R.S., of the Mined Land Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of Construction Materials. KNOW ALL MEN BY THESE PRESENTS,THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et seq. (the"Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of Construction Materials, C.R.S. 34-32.5-101 et seq. (the"Act"), as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Weld County Public Works (the "Operator"), has applied for a permit to conduct a mining operation known as Koskie Pit (the "Operation") on certain lands in Weld County, Colorado. These lands are described in the permit application, as amended and supplemented, and are referred to herein as the "Affected Lands". WHEREAS, in its application for the permit, the Operator has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Board, as amended from time to time. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation with regard to those affected lands in Weld County which are now or may become subject to the permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. -2 - Office of Office of Mined Land Reclamation Denver•Grand Junction•Durango Active and Inactive Mines WHEREAS, the Operator hereby gives the Board a performance warranty pursuant to Section 34-32-117(2) or Section 34-32.5-117(2) of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act with regard to those Affected Lands. NOW, THEREFORE, the Operator hereby promises the Board that it will comply with all applicable requirements of the Act and rules and regulations of the Board with respect to the Affected Lands. FURTHER, the Operator hereby promises the Board that it will comply with all of the terms of the application for a permit, as amended and supplemented, as well as any conditions attached to the permit by the Board. FURTHER, the Operator promises the Board, pursuant to 34-32-112(2)(d) or 34-32.5-112(1)(c)(iv) of the Act, that it has the lawful authority to enter upon the Affected Lands to conduct mining operations, including, but not limited to, reclamation. The Operator further recognizes the right of the Board to enter to reclaim lands affected by the operation. The description of lands herein is for convenience of reference only, and no error in such description, nor any revision of the permitted mining area, nor the disturbance by the Warrantor of lands outside of the permitted mining area shall alter or diminish the Operator's obligation hereunder, which shall extend to the reclamation of all such lands disturbed. The obligation of the Operator hereunder is such that, if the Operator shall successfully comply with the requirements of the Act, applicable rules and regulations, and the permit, then the Board, upon a finding that the Operator has so complied, shall release this performance warranty, and the Operator from its obligation hereunder, to the extent that the Board determines that such compliance has been accomplished. The obligation of the Operator hereunder shall continue until released in whole or in part by the Board in accordance with applicable law. In further satisfaction of the requirements of the Act, the Operator promises to be responsible for the cost of reclamation up to the amount established by the Board and has attached hereto its financial warranty, which may be amended from time to time. The Operator agrees that it will maintain a financial warranty (or warranties) for the estimated costs of reclamation in good standing for the entire life of the permit. Please note that under the provisions of the Colorado Mined Land Reclamation Act and the Colorado Land Reclamation Act for the Extraction of Construction Materials, any Applicant or Operator that submits proof, acceptable to the Board or Division of Reclamation, Mining and Safety, that an Applicant or Operator is a unit of County or Municipal government, or is a department or division of State government, the Applicant or Operator is not required to submit or post any other instrument of financial responsibility but hereby promises to be responsible for the cost of reclamation up to the amount specified by the Board. If the Board determines that the Operator is in default under this performance warranty and has failed to cure such default,although written notice of such default and ample time to cure such default have been given, the Operator's financial warranty shall be subject to forfeiture. This performance warranty may be executed in multiple copies, each of which shall be treated as an original, but together they constitute only one agreement, the validity and interpretation of which shall be governed by the laws of the State of Colorado. -3 - The provisions hereof shall bind and inure to the benefit of the parties hereto and their successors -and assigns. SIGNED, SEALED AND DATED this day of Weld County Public Works (SEAL) Operator By: Title: NOTARIZATION OF OPERATOR'S ACKNOWLEDGEMENT STATE OF ) ss. COUNTY OF The foregoing instrument was acknowledged before me this day of by as of NOTARY PUBLIC My Commission expires: APPROVED: State of Colorado Mined Land Reclamation Board Division of Reclamation, Mining and Safety By: Date: Division Director M:\min\share\bondforms\Performance Warranty.doc(05/26/2004) Hello