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HomeMy WebLinkAbout1.09 Water Supply PlanWater Supply Plan PDC Energy Piceance Centralized Soil Treatment Facility OLSSON ASSOCIATES OA Project No. 011 -2627 760 Horizon Drive, Suite 102 1 Grand Junction, CO 81506 1 TEL 970.263.7800 1 FAX 970.263.7456 O LSSO N ASSOCIATES PDC ENERGY /CAERUS PICEANCE LLC PICEANCE CENTRALIZED SOIL TREATMENT FACILITY WATER SUPPLY AND DISTRIBUTION PLAN LUDC 4- 203.M. Water Supply and Distribution Plan. The PDC Energy /Caerus Piceance LLC Piceance Centralized Soil Treatment facility does not require a potable water source for personnel or freshwater for sanitary facilities, landscaping or day to day operations of the facility. The operations of the facility will be similar to other natural gas operations in Garfield County. This facility does not require a water distribution and wastewater system to properly function. The proposed use is an unmanned facility with personnel onsite only for short intervals. A source of potable water will not be required for workers utilizing the site. Workers will provide their own potable water in their trucks. Potable water is made available at the applicant's local office for personnel and contractors. The facility does not have a demand for potable water as part of the soil remediation process. Landscaping is not being proposed; therefore a water system is not required to maintain any plantings. No permanent sanitation facilities that require a source of water will be located at the facility. Non - potable fresh water will be required for remediation of soils. The water will be used to facilitate the application and maintain the viability of the microbes which are applied as part of the remediation process. Water will be delivered to the site via truck and utilized the same day as soils are delivered for treatment at the facility. No water storage tanks are anticipated. Fresh water will also be used for dust suppression. PDC has entered into a (non - potable) water supply contract with the Colorado River Water Conservation District (CRWCD) (Contract no. CW06004), under which PDC is entitled to the delivery of water. Water will typically be gathered from the Chevron Water Draw on Garden Gulch Road, per Garfield County Land Use Permit LIPA -7533, Resolution 2013 -38. On rare occasions, fresh water used for operational activities at the proposed facility may also be secured from a licensed provider with demonstrated access to water supplies. 760 Horizon Drive, Suite 102 TEL 970.263.7800 Grand Junction, CO 81506 FAX 970.263.7456 www.olssonassociates.com PDC Chevron Water Draw & Pump House '+ L i Piceance Centralized Soil • Treatment Facility Site Road Data provided by Garfield County GIS Database Legend * PDC Chevron Water Draw Piceance Centralized Soil Treatment Facility Site - Highway /Interstate Route to Site Access Road - Local Roads 0 0.5 1 !Miles 2 S PROJECT NO: 013 -0425 DRAWN BY Jenna Muhlbach DATE: 8/19/2013 WATER HAUL MAP PDC CHEVRON WATER DRAW & PICEANCE CENTRALIZED SOIL TREATMENT GARFIELD COUNTY, COLORADO OLSSON ASSOCIATES 760 HORIZON DR., SUITE 102 GRAND JUNCTION, CO 81506 TEL 970263.7800 FAX 9702617456 FIGURE WH - 1 DEPAR ENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES August 9, 2012 Thomas A. Zancanella, P.E. Zancanella and Associates, Inc. Engineering Consultants P.O. Box 1908 1011 Grand Avenue Glenwood Springs, CO 81602 RE: Substitute Water Supply Plan for Petroleum Development Corporation Case No. 2009CW16 Section 8, Township 6 South, Range 96 West, 6th P.M. Water Division 5, Water District 39 Approval Period: August 1, 2012 through July 31, 2013 Contact Phone Number for Mr. Thomas A. Zancanella: 970-945-5700 John W. Hickenlooper Governor Mike King Executive Director Dick Wolfe, P.E. Director/State Engineer Dear Mr. Zancanella: We have reviewed your March 23, 2012 request for a substitute water supply plan ("SWSP") on behalf of Petroleum Development Corporation ("PDC" or "Applicant") pursuant to § 37-92-308(4), C.R.S. PDC is a co-applicant in the pending application for approval of a plan for augmentation, including exchange in Division 5 Water Court case no. 2009CW16. This SWSP references the application filed in case no. 2009CW16 and PDC has provided notice of the SWSP to all counsel of record in case no. 2009CW16. That notice was sent on March 23, 2012. The State Engineer's Office ("SE0") did not receive any comments during the statutory 30-day comment period. The statutory $300 filing fee (receipt no. 3654545) was submitted with the SWSP request. SWSP Description PDC is conducting industrial hydrocarbon exploration and production operations consisting primarily of a natural gas drilling program on lands it owns as well as on lands it leases, or leases mineral estate interests. As shown on the attached Exhibit 1, the majority of the exploration and production operations occur on lands located within the Parachute Creek drainage on the plateau top northwest of the Town of Parachute. Some of the exploration and production operations may also occur on lands within the Roan Creek drainage, on the Parachute Creek valley floor, and along the Colorado River. It is anticipated that PDC's industrial exploration and production operations water supply is needed for drilling, hydraulic fracturing, dust suppression, hydromulching, evaporation and other related uses. For the purposes of this SWSP, the above uses are considered 100% consumptive, therefore, the consumptive use is assumed to be equal to the gross diversions. All diversions made under this SWSP will be taken directly from surface water sources and be fully consumed. Office of the State Engineer 1313 Sherman Street, Suite 818 • Denver, CO 80203 * Phone: 303-866-3581 • Fax: 303-866-3589 www,water.state.co.us Thomas A. Zancanella, P.E. August 9, 2012 Page 2 of 5 Diversions and Depletions Although PDC has applied for various points of diversion on Parachute Creek which are pending in the water court application in case no. 2009CW16, all diversions from Parachute Creek made under this SWSP will be taken at the Parachute Creek PDC Diversion. An application for a surface water right for the Parachute Creek PDC Diversion is pending in Division 5 Water Court in case no. 2007CW246. The Parachute Creek PDC Diversion is located on Parachute Creek in the SE 'A of the SE Y4 of Section 8, Township 6 South, Range 96 West of the 6th P.M., at a point approximately 355 feet from the South section line and 1,240 feet from the East section line of said Section 8, in Garfield County. This location is adjacent to the existing road used as PDC's primary access to the plateau top. Chevron Shale Oil Company owns the land at the point of diversion. In case no. 2007CW246, the proposed use of water diverted at the Parachute Creek PDC Diversion is identified as industrial, commercial, energy exploration and development, mining, storage, evaporation, refining, power, domestic, agricultural, irrigation, and augmentation. You estimated that PDC's industrial exploration and production operations could use as much as 245 acre-feet of water during the approval period of this SWSP. As indicated above, all withdrawals of water from the Parachute Creek PDC Diversion are assumed to be 100% consumptive, therefore stream depletions will equal the gross diversion amount. The attached Exhibit 3 shows the anticipated monthly diversion amounts from Parachute Creek PDC Diversion. The diversion rate claimed for Parachute Creek PDC Diversion in case no. 2007CW246 is 2 cfs, therefore diversions made under this SWSP will not be allowed to exceed 2 cfs at any time. Replacement Sources PDC has entered into water supply contracts with the Colorado River Water Conservation District ("CRWCD") (Contract no. CW06004) and with the West Divide Water Conservancy District ("WDWCD") (Contract no. 020807PDC(a)), under which PDC is entitled to the delivery of water. The contract with CRWCD is for 170 acre-feet annually, and the contract with WDWCD is for 100 acre-feet annually, for a total of 270 acre-feet annually. Copies of the contracts were submitted with the SWSP and they are attached to this letter as Exhibits 4 and 5. The sources of replacement water from CRWCD were identified as Wolford Mountain Reservoir and Ruedi Reservoir, Wolford Mountain Reservoir is located on the Muddy Creek drainage and it was decreed by the Division 5 Water Court in case nos. 87CW283, 95CW281 and 98CW237. The Ruedi Reservoir water will be used in addition to, and in substitution for, Wolford Mountain Reservoir water when Ruedi Reservoir water can be used to supply water to downstream calling rights. Ruedi Reservoir is located on the Fryingpan River drainage and it was decreed in case nos. CA-4613 and 81CW34. The sources of water supply from WDWCD were identified as Green Mountain Reservoir, Ruedi Reservoir, Alsbury Reservoir, or other works or facilities of WDWCD. Green Mountain Reservoir is located on the Blue River drainage and it was decreed in case nos. CA-2782, CA-5016 and CA-5017. You have proposed to include a transit loss of 10% for all replacement water delivered under this SWSP. Based on an estimated transit loss of 10%, a total of 269.5 acre-feet will need to be released to replace the 245 acre-feet estimated to be needed for industrial purposes. Although a transit loss of 10% is accepted for the purposes of this SWSP, the transit loss amount is subject to assessment and modification as determined by the division engineer. The projected schedule of the release of replacement water from CRWCD and WDWCD is shown on the attached Exhibit 3. Thomas A. Zancanella, P.E. August 9, 2012 Page 3 of 5 SWSP Operation When in priority, PDC will divert water from Parachute Creek at the Parachute Creek PDC Diversion to conduct its industrial exploration and production operations. At times there is no senior call from water rights on Parachute Creek, but there is a senior call on the Colorado River, PDC may continue to divert from Parachute Creek, provided adequate releases of augmentation water are made based on PDC's water supply contracts with the CRWCD and the WDWCD. At times there is an internal call placed by a water right on that reach of Parachute Creek downstream from PDC's point of diversion, PDC will cease diverting from Parachute Creek, but may divert from the Colorado River. Diversions from the Colorado River will be made in priority, or if out of priority, diversions will be made pursuant to adequate releases of PDC's leased augmentation water from CRWCD or WDWCD. The point of diversion from the Colorado River was identified as the Sinclair Pump and Pipeline, which was decreed on November 10, 1966 in case no. CA -4914, District Court, Garfield County. The point of diversion from the Colorado River is located on the northerly bank of the Colorado River at a point whence the W % corner of Section 23, Township 7 South, Range 96 West of the 6th P.M., bears South 62 degrees, 50 minutes West a distance of 4,605 feet. Water pumped from the Colorado River will be hauled to the exploration site. Diversions shall be limited to the monthly volumes shown in Exhibit 3, and shall not exceed the cumulative instantaneous flow rate of 2 cfs. All diversions shall be measured and recorded, and accounting will be submitted to the division engineer and the water commissioner. Diversions from the Colorado River can continue year -round under the terms of this SWSP. Diversions from Parachute Creek can continue under this SWSP at any time the applicable reach of the creek in not under local administrative call. At any time water is diverted from Parachute Creek or the Colorado River and hauled to the exploration site, a copy of an executed and current contract with the WDWCD and the CRWCD shall be available to the water commissioner upon immediate request, and in each of the hauler's truck(s). According to the application filed in Case No. 2009CW16, the Applicant does not own the land where the Parachute Creek PDC Diversion is located. This SWSP does not grant to the Applicant any easement, right -of -way, or other interest in the land where this point of diversion is located. Prior to use of the Parachute Creek PDC Diversion, the Applicant must obtain an easement, right -of -way, or other interest in the land and/or structures and provide a copy of such legal access to the water commissioner and division engineer. Conditions of Approval I hereby approve the proposed SWSP in accordance with § 37- 92- 308(4), C.R.S. subject to the following conditions: This SWSP shall be valid for the period of August 1, 2012 through July 31, 2013, unless otherwise revoked, modified, or superseded by decree. The initial date of approval for this SWSP was August 27, 2010 for operation beginning August 1, 2010. Pursuant to § 37-92 - 308(4)(b), C.R.S., "if art applicant requests a renewal of a plan that would extend the plan past three years from the initial date of approval, the applicant shall demonstrate to the state engineer that the delay in obtaining a water court decree is justifiable and that not being able to continue operating under a substitute water supply plan, until a decree is entered, will cause undue hardship to the applicant." This information must be submitted with any SWSP request that seeks a plan approval period that would extend beyond July 31, 2013. Additional SWSPs are required until a court decreed plan for augmentation is obtained for the proposed uses. Should an additional SWSP be requested, the provisions of § 37 -92- 308(4), C.R.S., shall Thomas A. Zancanella, P.E. August 9, 2012 Page 4 of 5 apply. The statutory fee of $300 will be required pursuant to § 37-92-308(8), C.R.S. Any request for an additional SWSP must be submitted to this office no later than May 1, 2013. 1. The name, address, and phone number of a contact person who will be responsible for the operation and accounting of this plan must be provided to the division engineer (Alan Martel laro, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970-945-5665), and the water commissioner (Eddie Rubin, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970-948-2297) within 20 days of the receipt of this approval. 2. The use of water under this SWSP shall be limited to industrial uses associated with hydrocarbon exploration and production operations. When operating under this SWSP, the combined annual diversion from Parachute Creek PDC Diversion and the Sinclair Pump and Pipeline shall not exceed 245 acre-feet and the combined maximum division rate shall not exceed 2 cfs at any time. Additional diversion points/structures and/or additional uses for the water that is the subject of this SWSP will be allowed only if a new SWSP is approved for those additional structures/uses and such additional structures/uses are identified in case no. 2009CW16. Should a new SWSP be requested, the provisions of § 37-92-308(4)(b), C.R.S., shall apply. The statutory fee of $300 will be required pursuant to § 37-92-308(8), C.R.S. 3. Replacement water is to be supplied pursuant to the water supply contracts with CRWCD (No. CW06004) and with WDWCD (No. 020807PDC(a)), under which PDC is entitled to the delivery of 170 acre-feet annually from contract no. CW06004 and an additional 100 acre-feet annually from contract no. 020807PDC(a) for a total of 270 acre-feet annually. 4. At any time water is diverted from Parachute Creek or the Colorado River and hauled to the exploration site, a copy of an executed and current contract with WDWCD and CRWCD shall be available to the water commissioner upon immediate request, and in each of the hauler's truck(s). Replacement water shall be made available to cover all out-of-priority depletions in time, place, and amount and shall be made available under the direction and/or approval of the water commissioner. The replacement water may be aggregated to maximize beneficial use. The water commissioner and/or division engineer shall determine the rate and timing of an aggregated release. 6. Conveyance loss for delivery of augmentation water to the Colorado River is subject to assessment and modification as determined by the division engineer and/or water commissioner. 7. The replacement water identified in this SWSP cannot be sold or leased to any other entity during the term of this SWSP without prior approval of the division engineer. 8. According to the application filed in Case No. 2009CW16, the Applicant does not own the land where the Parachute Creek PDC Diversion is located. This SWSP does not grant to the Applicant any easement, right-of-way, or other interest in the land where this point of diversion is located. Prior to use of the Parachute Creek PDC Diversion, the Applicant must obtain an easement, right-of-way, or other interest in the land and/or structures and provide a copy of such legal access to the water commissioner and division engineer. All diversions shall be measured in a manner acceptable to the division engineer. The Applicant shall install and maintain measuring devices as required by the division engineer for operation of this SWSP. 10. The Applicant must submit accounting reports to the division engineer (Alan Martellaro, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970-945-5665) and water commissioner Thomas A. Zancanella, August 9, 2012 Page 5 of 5 (Eddie Rubin, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970-948-2297) on a monthly basis or other interval acceptable to both of them, The Applicant shall also provide an annual report to the division engineer and water commissioner by November 15th, which summarizes diversions and replacements made pursuant to this SWSP. Accounting forms are subject to modification and approval by the division engineer. Flow rates shall be reported in cfs, volumes shall be reported in acre-feet. 11 This SWSP may be revoked or modified at any time if it is determined that injury to other vested water rights has or will occur as a result of the operation of this SWSP. Should this SWSP expire without renewal or be revoked prior to adjudication of a permanent plan for augmentation, all diversions under this SWSP must cease immediately. 12. The decision of the state engineer shall have no precedential or evidentiary force, shall not create any presumptions, shift the burden of proof, or serve as a defense in the pending water court case or any other legal action that may be initiated concerning the SWSP. This decision shall not bind the state engineer to act in a similar manner in any other applications involving other SWSPs or in any proposed renewal of this SWSP, and shall not imply concurrence with any findings of fact or conclusions of law contained herein, or with the engineering methodologies used by the Applicant. Any appeal of a decision made by the state engineer concerning this SWSP pursuant to § 37-92-308(4), C.RS,, shall be to the Division 5 water judge within thirty days of the date of this decision and shall be consolidated with the application for approval of the plan for augmentation. Should you have any comments or questions, please contact Alan Martellaro, Division Engineer in Glenwood at 970-945-5665 or loana Comaniciu in this office at 303-866-3581. Sincerely, Jj Jeff Deatherage, P.E, Chief of Water Supply Enclosures: Exhibit 1, Exhibit 3, Exhibit 4 and Exhibit 5 cc: Alan Martellaro, Division Engineer Eddie Rubin, District 37, 38, 39 and 45 Supervising Water Commissioner Counsel of Record, 2009CW16 Colorado River Water Conservation District West Divide Water Conservancy District JUIDC/kaa Petroleum Deve4opment Corporation 2012 SWSP id 11!I� iR JCR i 16p 1011111 ' ILI i U) Exhibit 3 Anticipated Diversions1 Depietion s, and Replacement all values in acre-feet (2) (3) (4) (5) (5) (7) Months Diversions Depletions Need For Replacement Replacement CRWCD WDWCD Total January February March April May June July August September October November December 14.00 14.00 25.00 27.00 27.00 27.00 26.00 24.00 19.00 14.00 14.00 14.00 14]]8 14.00 25.00 27.00 27.00 27.00 26.00 24.00 19.00 14.00 14.00 14.00 15.40 15.40 27.50 29.70 29.70 29.70 26.60 26.40 20.90 15.40 15.40 15.40 14.50 13.10 14.50 13.40 14.60 14.60 14.10 14.60 14.10 13.90 14.10 14.50 0.90 2.30 13.00 16.30 15.10 15.10 14.50 11.80 6.80 1.50 1.30 0.90 18/48 15.40 27.50 29.70 29.70 29.70 26.60 26.40 20.90 15.40 15.40 15.40 Total 245.00- 245.00 269.50 170.00 99.50 269.50 (1) Months in Calendar Yea order. (2) Anticipated diversions for industrial sP uses byPDC during SWSP term. (3) Equals (z). since diversions considered 100% consumplive. with no delayed impacls as explained in tex (4) Equals (3) times 1.1 in orrler to account for assessed tran5it I0se5. (5) CRWCD Colorado River supply contiact CW06004 proposed release schedute. (6) woWoD contract 000uu7roo(o)proposed release schedule. Zancanella Associates, Inc. Z:126000126407 Petroleum Development Corp120101SWSP4SWSPwater.xls Anticipated PDC SVESP Exhibit 4 •'ATEi SUPPLY CONTRACT This Cork rEct is made' hchareen the COLORADO ttIVER WATER CONSERVATEON DIS1ERICP Chemin. thret, "River District"), pelitickl subdivision of Em State of Colorado acting hy and through its Colorado Rivce Water Projects En tchortses and PETROLEUM DEVELOPMENT CORPORA if N(hemin "ConnEcto55) effeztrive as IQ f MIL?, 1,2006, RIL„,--crr A INS TI*RIRsiver DtsricRis authosigtd to contnict to dta liver water Far beneficial utelicm RN 1- District water oruleank purauant to provisions of CER.Sr E 37R,15,101, sa5g, (heroin "River Distrikt Organic Act"),„ Et, The River District ik the owner and operator of the Wiliford Mlookikin RkmckEt Pk sjr locateci on the Muddy Creek dha lank hougseermail g, C lorudtklianingobemied necessary &caeca not ri the District Court in and fro Colorado Water *Miran No 5 (honela "\Vater Court") rid parenits fiLKEI govetrometha 1 agencies, and t heR isteriktri a is entitled to (lel iateries o flatatel fawn Bacilli Reset Yon under Rs ContraGts with the U.S, Bureau of Rectal nation C, Tho River District's Board of DUCA:RA-1i ItaS' adopted a liAkkr Nikirketing bs revised an April I9,20E 6„ Lo provide for thc t tse of \a, ;.cao VLi ab k rrOnt UR; tUyer istd crs sources of supply pursuan0 to contracts, and that Witter N1athLuu5Po1a y is to Ex implemented Einiugh the 1.Z.Jiver Dish-ids Water Projects Enterptise, 14, Cian'iniCtOt hhIS a need ftn wholesa le wai cr supply, demolish sited w its allh uittas to the RiNter L1151fitic1pursualut to hie Wit ter Marketing PoEcys corthnotitigprocess, ia the, umount o 70 Witt reL'A annually fur munkabiikladustrial purposes, which beneficial uses vitt II iSa 9L n np5R by Contractor gene ri ly in the vicinity of Panielitina, Color-ado, by surface' and ground mite: diversions fin m or within the Paenchute Creek dradriag; which es as tm bunny to the Coln i-ado River. E. Contractor has raviEwed the Water NiCaketifig Pu icy End is ZIWLIFIZ Of Etc"! tydrolo341 Assumptions" v luch hre pact of that Policy rind is satisfied, basi.ad on its review end investigations, gist LontnvilLo kgnlly ad physicafly cam ?mike us' Co r Its intended purposes cif the Contmoted Water which is the subject of thi s Contract and that siich use wilf5omply with the Water Marketing PultLy and the Project's permits and decrees, PEEINM.QP,IS latkis Comma ceitain terms will have definitions ns stated bellows The "River District" mans the Colorado River Water Conservation District =mut Enid existing pursuant to the River District Organic Act &lined an Recital A nod acting .by wild through its Co toradoRiver Water Projects Enterprise which is correntN •page 1 of II • PDC SWSP Exhibit 4 SUPPLY CONTRACT r'lgelrcif CWO6n4 described ALIO rr.cnar in the Rosokitibn nt he Colorado River Wake Conservation Distirrit'S;Board of Directors dated April 20:„ 20053 'File "Project Eric [ins ver Di.ncs "Colo ei o River Supply" 650111(1) ol ford Mountain Reservoir, for ‘vhich storage, water tight 'decrees were obtained by the River District, in Cases No, 1:PC332U „ 95C 2 1 and 98CW237 istdd Court for Colorndo alter Division Nn„ 5; and Co r which add nia stomp water right decrees may be obtained in the Lite re by tlic River Distrkt other cases', and 2) the River Districe's co tractual right to is,ater rich VCIrieS rrn Rued Reservoir, "Agriculture' means the use or water for co 1110Ftnal production .f agricultural crops and livestock rin other uses consistent with any right clearoud for irrigation purposes, whicii uses nre, made on a parcel of and or eit least ten acres, and industrial" neans the use of miter by idvauils, cities, ons, IN: or gnosipliblie districts, private co ell rations, homeowners associatio 01 ter entities for ati, ittlinCi 1, and miscellaneous terms tire treditiu Ily na commonly construed, inclu purposes IfpmdL1ciigo r processi gu noreag,ricultund pr not or senrice, Cor sale, nicht Pig without linairations, such rises ns uJ uthLtu tng rnn n hilling, land recloniation, golf course irrigation„ snow ak1ig, and •on-hydrucleetric power oratio ; and inclu Mg the use • of water for enviror cnil ndgt.n purposes • associated with ich uses; but c ceptingthe agricultural lose of 'alter defined herei aed proposes, as those , the: use of water far ''C ,nu cited rat r"° means the waiter hich SINhjeZt of b i antrac ucb is to be released a el delivered by the R er IHc t d used by ono-actor, Tlae Coma uteri Water is 170 act e feet of Colorado R liver Supply available during, each Pc Ject Year during e tern) Of tht3 Contract, subjer t to the provisions licrecif„ FOC Coto Ps lase v hou t right of roirryover of any ai rom t net used u any Pr lee t Year. Jed r" means a pa subsequent Junc 30 f (mei from July I ti light and Line-hider, me MirketingPolicy" means the River D istrices policy statei neilt as revised and readopted April 19,2006, md as the Slate may be amanied in the 11111ll "Project Hydrol attached asAppe Assumptione"or"HythologyAssur ptions" nieanhe document ix 'A" to the Water Marke,tnis Poliity adopted on April 19,2006, page 2 of 11 WATER SUPPLY CONTRACT Page3 of I 1 PDC SWSP Exhibit 4 AG CWD6004 The foregoing Recitals and Definitions are incorporated herein as agreements between the River District and Contractor. 1. River District Water Delivery Obligations and Responsibilities. Delivery. The River District will deliver the Contracted Water at the outlet works of the Contracted Water's sources of supply into the receiving natural streams in quantitiesprovided herein. Unless otherwiseagmed to by the RiverDistrict's General Manager based upon written request of Contractor, the River District will m alceitleas es for Cent= tor,based upon. Contractor's written scheduleofanticipated de ad, adjusted as nee aty by the ongoing status of river ad • 's ° on vis-a-vis the pricnitystatus of Contmctor's diversions, provided that the releases I be made within the operational limitations of the River District's project facilities as determined by the River District in its sole discretion. Contractor shall be solely responsible after delivery for the legal and physical deliver), and use of the Contracted Water, b. Delivery Contingencies, The RiverDistrict's delivery of Contracted Watcrshall bc subject to Contractor's payments pursuant to p -graph 3 below and the provisions for curtailment of deliveries in p 115 below. c. Water Measurements. The River District shall at the outlet works of the Contacted Water's sources of supply all Contracted Water delivered from the account of Con for and shall notify the Division Engineer of Colorado Water Division No. 5 of the date, e and amount of Contracted Water rel ed and delivered pursuant to this Contract Copies of such records shall be provided to Contractorupon its request the sr. d. Water !Duality. The RiverDistrict shall have no obligation to Contractor or any other person regarding and makes no warranties or representations to Contractor concerning the quality of Contracted Water delivered pursuant to this Contract by releases of mw water to natural streams. a. Maintenance of Facilities. The RiverDistrict shall use its best efforts to maintain in good working condition the water storage and release facilities of the Contracted Water. Withholding ofDelivery. The River District may withhold deliveries of Contracted Water in the event. of Contractor's nonpayment for Contracted ] Water or any other breach of this Contract by Contractor. Such remedy shall not be the River District's exclusive remedy in the event of any such breach. page 3 of 1 1 PDC.-Gm/SP ExNbit4 ANATCR ,Y CONTRACT' pvv^m/|� 4 Primary or/Jte/uate Sources Tv River Dist( tor will deliver the Contracted Water u[Co|omaduR0sterS ripply described |ciclumddu� will meet We 'Coonmo/vgs need xz so6a[y calls by mouio^ water rights or 16m Coutorznrt physical mod ho, any direct delivery^ Of Contracted Water to Contractor's diversions, Subject to matting those objectives, the River District reserves the rip,6||o provide all ur ally o[\beCnuosebed Water |o Contractor Rum o]teruulereservoirs [orCmdnWo/x use, provided that the mhnm^|o sources are sinuabloiophysically }o8/ calls b, senior water rights ur Contractor's need tor direct de|mery. Any releases from alternate b/ci6bos shall not diminish the supply of Conn acted Watet, 2, Contraelor's Winer Use Oblittatimarrid River is schccluleo its antitapatedmontlily demands for Contracted Wit ter di g the cr nt Project Year '1'heseliedade Novi ded by Contractorin its applic anon for this Contract shall serve xu the schedule tmb enscJ until \tio modified inu written notice given hy ComUacLurto the River District, ormg4 necessary bm response /nri vet' od/muiub;dun cif the Conti-actor's diversions, The schedule shall identify die volume of any Contacted Water anticipated by Contractor not to he needed by a during any particular Project Ycac Contractor shall updu/esaid un[a:Ju|oporiodiouUydu�mg (he Project Year as cmoJ&Uoumxoquircan^| give 8,u8jvex[}istriotwriKonnuncco[nD such revisions, &. Contractor shall bear carnage losses in such mn000t OS IN determined by the Division Engineer for Co|vmda Water Division No, 5. from &e. ;oluto[d*hvcryo[Coniwoxvd\Vrs|crtoCozurmuo^spuinl(s)oQuoumnd/urexchuu#a or augmentation, use of Contracted Water shall in oU instances he in accordance with the terms of this Conn-ad, the Writer Policy, as it may change from riane to time, and in ar cot donee with applagrhla low oral all deemesrelated to the Ccainacted Water, Comm tor is not authorized to apply [hrorxc core any change in the water vlights fur orLiss:wm(NeUv*iduany o[ the xuuucs of supply of thc Contincted Water �� � tullcutu n plan or plans for clugmentat 1011 or ex el ange and/ocsecu re adinimstrauve pprova Is of any temporary substitute:supply plans which are neeilet1 for Contrictor to use its Contracted ‘Vater Ally such plans Wol ford Mountain Reservoir mid Rued! It rittOtrvoir as the suurixa ofsupply, If necessary, Con tractorshall amend the application to itlernify both ofil c River ishiet's soul tres o ['supply, I f Cinitratiorintends to make any such page 4 of 'II PDC SWSP Exhibit 4 WATER SUPPLY CON1RACT NO 0'11 04 applications for any augmentation or exchange plan(s) or substitute supply plan(s), Contractor shall submit the proposed application to the River District within a reasonable time before Contractor proposes to file such application. The River Distr icts ha I l rev iew for written approval such app licationsbefore they are submitted or filed, and the River District's approval shall not be unreasonably withheld. The River District may in its discretion become a coapp Ikea in the prosecution of any such applications for the purpose of protecting its ter rights and related policies. Contractor shall cause to be included in any final decree of the Water Court a provision conditioningContractor's use of the Contracted Water on the tence af a River District contract. e. Limitation on Disposition. Contractor shall not sublet, sell, d. te, loan, assign or otherwise dispose of any of its rights to this Contmctor to Contracted Waterwithout prior written notice to, and the written approval of, the River District and the payment of sfer fee at the prevailingrate set forth in the Water Marketing Policy. The River District's approval of such disposition shall be Led in all instances in which the Conti-actor is t . erring the water system which supplies the Contracted Water, or a pe nt fer of the Contract is to be made to a successor in interest of Contractor by reason of the sfer of the talk or other legal right to use the property served by the Contracted Water, or where the transfer is made to an entity such as a homeowners' association or special district created to serve the property originally represented to the River District to be served with the Contracted Water, ii. Upon asi ent, the price of the fixed component will remain as stated in the original Contract ifthewalerwill continue to serve the property originally re w - ented to the River District to be served with the contracted water and: (1) the assi: spent is made simply to reflect a change in e of the Contractor, or (2) the assignmentis from Contractor to an entity that acquired a 100% interest in Contractor. Irt all other as : nts not specified above, the fixed component will be charged at the then c rrent price determined by the River District Board or Directois. F. Contractor's Water Rates. Contractor may charge its water customers who are supplied with Contracted Water such rates and charges as are permitted by Col oindo law. Nondiscrknination. Contractorshall not discriminatein theavailab lity of or charges for any water service or water supply made available pursuant to or based upon. the Contracted Water on account of race, color, religion, or national origin or any other criteria prohibited under state or federal law. page 5 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Pow:gall CW06004 h. Accounting of Ilse. Contractor shall maintain an accounting of its use of all water used or supplied by Co n trac toron form(s) an cep tab I e to the RiverD is tric spec ifi cal ly for the purpose of enabling the River District to prove the use of River District Project water ri ghts and to administerand operate the Project and water right decrees and/or administrative approvals related to Contractor's use of Contracted Water. Contractor shall submit its accounting forms and records to the River District promptly upon request and shall assis t the River Districtas it may reas onably requ est in presenting and/or veri ring such evidence of use in court or before administrative agencies by les timonyo fCantractoror its authorized and informed offi cersor agents. Contractor shall consult with the y Corp of Engineersto en compIianewith Section 404 of the Clean Water Act as the result of the construction of any facilities necessary to use the Contracted Water. 3. Contractor's Pa ents. a. In addition to the applicationfee - dy paid by Contractor, in order for the River District's delivery obligation to become effective on July 1,2006, Contractorshal I pay to the River District on the execution of this Contract the total sum of $21,250.00, being $125.00 for each acre foot of 170 ; e feet of Colorado River Supply (the Contracted Water) for the Project YearJuiy 2006 *ugh June 2007. It is understood that the River District's delivery obligation shall become effective on July 1,2006. Ther- ; r, on or before April r of each year Contractor shall pay to the River District that amount, or the adjusted amount as provided below, for the next upcoming Project Year. h. The price of $125.00 per acre foot of Colorado River Supply Contracted Water includes a fixed component and a variable component. The variable component is based on Project operation and maintenance in the ount of $25.00 for Colorado River Supply. The variable component shall be adjusted annually based on the Boulder- vex-Greeley Metro Consumer Price Index ("All 1 s") and Contractor's subsequent annual payments for Contracted Water shall be adjusted accordingly. c. Contractor also shall pay any special assessment levied by the River District on Contractorto rccoupexpenses from extraordinaryrnaintenance incurred by the River District or assessed upon the River District by its third party water suppliers. 4. Contract Term. Subject to the provisions of paragraph 6 below, the initial terrn of this Contract shall be for a period of up to forty (40) years from the date of the execution of this page 6 of 11 PDC SWSP Exhibit 4 WATER, SIJFPLYCO CT CW06004 gage 7 Gi 11 Contract. Upon the completion of the initial term and subject to the provisions of p graph 6 blow, Contractorshall have the right to renew this Contract for a sec ond aryterm of thirty-five (35) years, which shall commence upon the expiration of the initial te If Contractor desires to so renew this Contract, it shall provide the River District written notice of its intention to do so at I t ninety (90) days prior to the expiration of the initial tarn of this Contract. Thereafter, and prior to the expiration of the initialterm, the rDistrictandCoutractorshallexecuteasuppiementalageement ofrenewal in a fo o mutually acceptab let° thcRiverDistrictand Con o tor. If such notice of intentionto renew is not provided and such supplemental agreement is not executed, no ren term shall eo nee. c. Upon renewal, the following terms of this Contractshall be subject to renegotiation: The charge for and adjustment of operation and maintenance may be increased or modified ',I.- ed upon the adequacy of the charge and its modification under this Contract to over the River District's o tion and maintenance costs actually experienced during the initial term. ii. The need or appropr ess of any conservation plan concerning Contractor's use of Contracted Water as dete ed by the River District. d, Upon renewal, the price of water shall be based on the then current water price as determined by the River District's Board of Directors. 5 Water Shortage. In the event that the River District is unable, because of either legal or physical reasons (including, but not limited to, hydrologic shortages and operational restrictions), to deliver any or all of the full Bo ount of water contracted from the Project, inc Ending the Contracted Water, the River Disoi ct eryestheright to apportion, theProjece s available water o ong its several contractors, including Can tor, in the r provided in Section 6 of the Water Marketing Policy. 6. Contract Termination. Termination by River District. The River District may terminate this Contract for any violation or breach of the terms of this Contract by Contractor, including Contractor's fa i lure to pay timely any stun or amount due under this Contract within thirty (30) days after receivingwritten notice from the River District of such breach. PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Pogeit of-11 CW06004 The River District also may terminate this Contract if, in its discretion any judicialoradministrativcproce- gs initiatedbyContractoris contemplated in subp, .graph 2,d above, threaten the River District's authorityto contract for delivery of Project Water or the River District's water rights, permits, or other interests associated with the Project, iii. The River District may terminate this Contract if its legal ability to deliver Contracted Water is materially impaired or is eliminated because of the termination or adverse modification of pe t Is, decrees or other authorizations which are needed to deliver the Contracted Water. b. Termination bv Con tor: Contractor y terminate this Can tin its n any reason by giving the River Districtat 1 t thirty (30) days advance notice prior to the due date of Contractor's next annual payment. Every fifth year after the year in which this Contract is executed, Contractor y partially ter u ' ate this Contract as to the amount of Contracted Water by giving the River District at least thirty (30) days advance notice prior to the due date of Con tor's next annual paymene P 'al termination by Contractorshnll not exceed more =4 fifty percent (50%) of thc • ount of Con ted Water which is then under contract. iii. Within thirty (30) days of fmal approval of the Water Court application contemplated by p: i ph 2.d., Contractor may by written notice to the RiverDisnict #4 'ally t inatethis Contract as to the amount nf Contracted Water which is not needed under that approval. c. Notice of Termination to cted Officials, The River District will notify the Division En eer and any other appropriate govertanaentaI officials of any full or partial contract termination except for any partial termination under subp I ph 6.a.(iii). 7. Conversi onto UnfroutPayment. Within three (3) years after the da te of the execution of this Contract, Contractor may conver t to an upfront payment by giving theRiver District at feast thirty (30) days advance notice prior to the due date of Contractor's next annual payment On or before the following April 1", Contractorshall pay to thc River District $157,250,00, being $900.00 for each acre foot of Contracted Water plus $25.00 for variable amount for each acre foot of Contracted Water. Thereafter, on or before each April 1" during the remaining term of this Contract, Contractor shall pay thc River District the variable component amount, as it may be adjusted as provided below, for the next upcoming Project Year. The annual variable amount payment of Contractorshall be adjusted annually based Pa e PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Plage) of 11 CW06004 on the Boulder-Denver-GreeleyArea ConsumerPrice Index ("All ") and Contractoes subsequent annual payments for Contracted Water shall be adjusted accordingly. if Contractor exercises the option to convert to an upfront payment, subparagraph 6.b.i shall become null and void. 8. Miscellaneous/Standard Provisions. Notices. All notices required or appropriateunder orpursuant to this Contract shall be given in writing Ird or delivered to the partie,s at the following addresses: River District: Colorado River. Water Conservation District Attention: Secretary f Gen 1M ger 201 Centennial Street, Suite 200 P. 0. Box 1120 Glenwood Springs, Colorado 81602 Phone: (970) 945-8522 Fax: (970) 945-8799 Contractor: Petrole Development Corporation Attn: Joe Veltri, Pipeline Supervisor 103 East Main Street P. 0. Box 26 Bridgeport, 26330 Phone: (304) 842-6256 Fax: (304) 326-2578 with copy to: eyL Kropf, Esq. Patrick Miller & Kropf, P.C. 730 East Durant Avenue Aspen, CO 81611 Phone: (970) 920-1028 Fax: (925-6847 kronf(alwaterlaw_com PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Page 10 011 CW06004 ii. Either party may, by written notice given in accordance with this provision, change the address to which notices to it shall be mailed or delivered. b. Amendments. No amendment, modification, or novation of this contract or its pro vi sions and implemen tations hall be effe ctiveun less documented in writing which is approved end executed by both parties with the same formality as they have approved and executed this Contract. c. This Contract is subject to the RiverDistrict's Water MarketingPolicy, as it may be revised from time to time by the River District's Board, COLORADO RIVER WATER CONSERVATION DISTRICT acting by and sugh its Colorado River Water Projects Enterprise DATE: /40 By: R. Eric T: David H. M itt. GhiefEnginee1Asst. Se a Secre page 10 aril PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT ragell aril VERIFICATION STATE OF COLO 0 CO OF GARP IUD CW06004 The foregoing Water Supply Co ct was subscribed and sworn to before me by R. Eric Kuhn as General Manager/Secretary and David H. Merritt as ChiefEnginccrlAssislant Secretary of the Colorado River Water Conservation District, actin by and through its Colorado River Water Projects Enterprise this 71-11 day of , 2006. Witness my hand and official seal. My Commission Expires; 7 CO 4 The foregoing Water Supply Contract was subscribed and sworn to before me by as -14E.e.-.R.- esibicAnz. for Petroleum Development Corporation this -26'4' day of +-ST; e/y , 2006. Witness my hand and official seal. My Commission Expires: eV OFFICIAL saga; NOTARY PUBLIC Srag OF WEST VtRGIN IA MISTY L. PINCH nr.3 Box i1/2 ?NUM. YIV 243410 Tfl page 11 of 11 "fent. firisuaryT004 PDC SWSP Exhibit 5 APPLICATION TO A 1 ND WATER LEASE FROM T D s E WATER CONSERVANCY DISTRICT S t, P. O. Box 1478, Rifle, Colorado 81650 109 West Fo 1. APPLICANT INFO • TION Name: Mailing Telephone: Authorized Petroleum Development Corporation : 3801 Carson Avenue Evans, Colorado 80620 (970) 506-9272 ent: Dewey Gerd 4 4 ' 2. COURT CASE #'s: Decree Case No. N/A Augmentation Plan Case No, 3. USE OF WATER El RESIDE (check applicable boxes) 0 Ordinary household use Number of dwellings: 0 Subdivision: No. constructed units: No. vacant lots: 0 Home d wn irrigation of sq. ft. Method of irrigation: 0 flood 0 sprinkler 0 drip 0 other o Non-cossuereial .*' $ . watering of animals 0 Fire Protection Well Sharing Agreement for multiple owner wells must be submitted. O CO .RCIAL (check applicable boxes) Ober of units: Total sq. ft. of conunercial units: 1...-Acription of use: )U L Description o e: _Drilling of Oil and Gas Wells Evaporation: Maxnnuru watersurfaoe to be exposed: _N/A tkscription of any use, other than evaporation, and method of Aversion, rate of diversion, and annual amount of diversion of any .vater withdrawn from the pond: N/A ICIPAL escription of use: 1. SOURCE OF WATER ltructure: N/A Structure Name: N/A ;our= OSurface EiStorage OGround water ;urrent Permit 11 (if applicable) RI Direct Pumping: Tributary: Main Stem Colorado River ,ocation: Debeque, Colorado (See No. 5) OCATION OF STRUCT Mesa :aunty Contract #020807PDC(a) Map #446 Date Activated 8/7/02 Date uended 1/1/05 Section Township Range Principill Meridian _27 & 28 8S - 97W 6th P.M._ Dis 'ce of well from section lines: N/A Elevation_N/A Well location address: N/A (Attach additional pages for multiple structures) 6. LAND ON U CH WATER 1. L BE USED (Legal description may be provided as an attachment) N/A Number of acres in tract: Inclusion into the District, at Applicant's expense, may be required. 7. TYPE OF SEWAGE SYSTEM 0 Septic tank/absorphen leach field ElCentral system ClOther District n e: N/A 8. VOLU OF LEASED WATER NEEDED IN A FEET: 100 (minimum of 1 acre foot) cusk 5 Provide engineering data to support volume of water requested. Commercial, municipal, and industrial users must provide diversion and consumptive data on a monthly basis. A totalizing flow meter with remote readout is required to be installed and usage reported to West Divide. Applicant expressly acknowledges it has had the opportunity to review the District's. form Water Allotment Contract and agrees this application is made pursuant and subject to the terms and conditiot ntained therein. Applicant Signature DATE APPROVED: a - 09 e4C ST D tE WATER CONSERVANCY DISTRICT ' (IS page 1 of 8 &arid March 2001 APPLICAT1ON TO LEASE WATER FROM PPC SWSP Exhibit 5 ST D IP E WATER CONSERVANCY D S 'C Contract #020807PDC(a) Map #446 Date Activated 8/7/02 I. APP ON 2. WATER COURT 3. 1 OF WATER 0 0 Ord' 0 Subdivision: No 0 Home 44, la od of irril " h 0 Non- Weli sabot k applicable boxes) old use Number of dwellings: ts: No. ye.: sq. 0 drip 0 other animals AgrEe t for rnu ust be 0 CO applicable jiberof ts Tata sq. fi. fcommercia1 it m 1..--Irsiption of use: Evaporation: Maxi Description of any us liversion, rate of diver ce to be vaporation, and methad o , and unl ount of divarsion of Iltdrawn from the pond: 4:14.4. ` CIF description of use: L SOURCE OF WATER xructure: 14. kructure N u e ;ource: OSurce 0Storage Permit # ect Pumping: Trib ,ocation: d water p lieable) .064 Elevation: Well location address: .i.'A (Attach additional pages for multiple structures) ON CEI WATER 1 BE USED gal description may be ided as an attachment) N ber of acres in tract: Inclusion into thglY required '4 tt 7. 'E OF SEWAGE SYS absorption lea 0 Septic District n S. VOL T: 41 it Apphc 3 expeizse, may be d OCentral ClOther F at' St 4 It a A Leased amount based on diversions unless con cZe augmentation plan or submits supporting monthly en data. Commercial, nutnicipal, and lad iar users diversion and consumptive data on a tnonthl,y basis. totafi; g flow meter renwte readout is required to be ailed at the ' e the well is drilled and usage reported to West Divide, upon request. Applicant a lepressly owledges it has had the opportunity to review the District's form Water Allotment Contract and agrees this application is mad asuant and subject to the terms mul conditions co .e-.4/7-deare Applicant Sigma Application Date: page 2 of 8 Name of App Ilea t: Quantity of Water in Acre Feet: ! Applicant, h pursuant to and ; g PDC SWSP Exhibit 5 Contract #020807PDC(a) Map #446 Date Activated 8/7/02 WEST D IE WATER CONSERVM4CY DISTRICT WATER ALLO 1 CO y applies to the West Divide Water Co y virtue ofC.R.S. 1973, §37-45-101, et sent. 1- edorh or lts° ." the attached Application, Applicant h by thefol'o to beneficially and flyuscwatar 1. WaterRJQhts:AppJi ts water, which will be supplemented and augmented by water 1 h d 3,11 CT ncy District, a political subdivision of the State of Colorado, tier as the 'District") for an a acquired by the District By 'on of this C and ditions: the point ofdiversi Applicant intends to di by Applicant that no right to divert istS until a valid well permit is nbtained the Col 2. QUantillt: Water applied for by the Appli 1 in the .1 'n y entitling Appli 11 rnust be und Division ofWaterReso divexsiou Rum the D1sirics d flow walerxights, and when water is unavailable fix diversion purs Engineer during periods when said d' inucrefeetperyi of otherwise, to the Appli from District's s and conditi Colorado River W consent ofihe Col provided, Appli 14.$ g water right is not in priority, the Di ' ter owned or controlled by the District It is unde 6.3 $ i v ove shall be di ed at Applicant's point of $ $ to administration by the Colorado State rel cfbrtheuseofAppli tuptosaidquantity Iy 11, I tity allotted direct flow, storage or by the District will be limited by the priority oftheDistrices dei and by the physical and legal availability of water y quantity allotted will only he provided so long as water is available and the Applicant fully complies with all of the f this Contract. The District and the Applicant recognize that some oldie District's decrees y be in the natne of the 0.1 I y tion District, and the ability of the District to allot direct flow right to thc Applicant may be dependent on the ter Conservation District. If at any time theAppliw t de es it requires less water than the ount herein ' 1i the District in writing, and the amount of water Kier this Contract shall be reduced p accordance with such notice. Rates shall be adjusted accordingly in following water years only. ently in 3. Beneficial Use and f Beneficial Use: Any and all water allotted Appli t by the District shall be used for the following beneficial use or uses: industrial, municipal, domestic and related uses, or commercial (except for commercial use from Alsbury Reservoir and except to the extent that Ruedi Reservoir water may not be available for commercial as that term is defined on Page 5 of Contract No. 2-07-70-W0547 between the United States and tho West Divide Water Conservancy District). Appli allotted shall be within or through facilities or upon land owned, I i, op Led, or under Appli 's beneficial use ofany and all water 4. and Delivery: Exchange releases made by the Distri ct out of store t 3 Ruedt rrvofr, Green Mountain Reservoir, AlsburyRescrvoir, or other works or Jhciliiks of the District, or from other sources available to the District, shall be delivered to the 1 page 3 of 8 xh it 5 Applicant at the outlet works of said storage facilities or at tgeWersegspFo3in5 of Lersion fur said other sources, and at such outlet or points shall constitute pc I. ance of the District's obligation. Delivery of water by the D' n M. in Reservoir shall be subject to the District's facilities h y contracts with the United States Bureau of Recl ble to District shall be subject to the tracts, laws, rules, and moiled y res the right to store water and to malce o long as the water service to the Applicant purs ange tt 4,* 1 not delivered to or used by Applicant by the cod of each water es 414 th 11, d 0 Ruedi Reservoir or 0.1 0111 . Fu ermore, the D. e y be built or controlled by the District in nat impaired by said action. Any q tity ofthe Applicant's 0 1), shall reversion shall not tIcAppIi 6661 to any refund of :de for such water. he water supplies of the District. Such Water service ided by the District shall be 11 ...ted to the amount of water available in priority at the original point of diversion ofthe District's applicable water right, and neither the District, nor those entitled to utilize the District's y call on any amount at new ar alt te points ofdiversion. The District shall request the Colorado Division of WaterResources to estimate any con b the original point and any al ate point, and such estimate shall be deducted Water service provided by the District far prop provided pursuant to A eats with said D.- 'cts The In District, d : 6 January 25, 2001, is dum of Understanding b e ed as • 11 0 this cunt in each within the Bluestone and Silt Water C 6 Districts is cult b the District and the Silt Water Cons ncy the District and the Bluestone Water C lan No. 584840, Garfield County Clerk and R rder's Office. rights or I 4 5, water may be P in o 44 6,1 nd A 1.1411 'on: D occlusive responsibility of Appli in order for Appli The District res 44 approval of said al .6 point of diversion as con patad that it shall be solely responsible for the procedures and t nier's Office. The In ervancy District, dated April 26, 2001, PJ d approve any 40 • Itt i p Dints of diversion ofthe District's water h der. Obtaining such decree is the which may be attached to judicial Applicant's facilities or lands. Appli t owledges and .6. ts n ary for any changes in water rights contemplated herein, and further a to indemnify the District from any costs or losses related thereto. Appli solely resp ible for providing works d hies n b di 6.6 the s at said a • :te point of diversion and deliver than to Applicant's intended beneficial use. pective of the amount of water y transf to the Appli t's point of diversion, the Applicant shall make annual payments to the District based upon the amount of water allotted under this Contract. In the event the Appli tends to apply for an alternate point ofdiversion and to develop an augmentation plan and institute legal pr , gs r the approval &such augmentation plan to allow the Applicant to utilize the wnter allotted to Applicant hereunder, the Applicant shall give the D' ct written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to utilize the water allotted h I der, Appl i cant shall not be obligated to pay any amount under Paragraph 19 below. In any event, theDistrict shall have the right to approve or disapprove the Applicant's augmentation plan and the Appli t shall provide the District copies dwell plan and of all pleadings and other papers filed with the water court in the adjudication thereof 6. Contract Payment Non-refundable, one time administrative charge, in the amount determined by the Board of qrectors of the District from time to time, shall be submitted with the application for consider ti on by the District. 2 page 4 of 8 payment for the w apaymetdshaJJ be made in fun, within 11:1beitclAemlined by the o Directors ofthe District. The initial notice to the Applicant that the initial payment is due, Said notice will advise the Appli.. t, among other things, ofthe water del iveryyear to which the initial payment shall apply and the price which is applicable to that year. ual payments fbr th ...,. 1 shall be due arid payable by the Applicant on or before each January 1. Unit payment is not made by the due date a flat 850 late fee will be assessed. Final written notice priorto cancellation will be sent - ed : m i, , , receipt requ 4 , to the Appli at such ad as may be design, .1 by the Appli' t in writing or set forth in this Contract or Appli n. 4 ual Water use for any part of a District from adjusting the fl 0 hall require payment for the crithe water year. Nothing h shall be con ed so AS to pre ual rate in its sole dis tion for future only, Ifpa tisnotmadcwithhifi herein made, may be It a offices in Denver and G al i *1 4.4 5) days e date o this Con, . and deli d ed, or otherwise disposed of at the discretion of b 4,40 e o ° Applicant shall at District's sole option have D Jataly t: ecL The all a District ent of water, as f this water t Contract with the District, the District shall notifytheDivision of Water Resonrces Springs. The Division of Water Resou may then order - s tion of all water use. 7. Additi " eat ofwater rights h 'ghts and adjudication 8. F and Costs: s d 1,y y ding, but not limited to, reimbursement of legal and en allow Applicant's use &such allotted water rights. i4 e This Co ct shall not in the prior written consent of the District's B must ,,, ply with, such req obligations by as 911 I& individual and s for ass IF I it I 1. 4 d 11 4 of D° 4.14. ors. Any as ents as theDistrict may hereafter adopt re d successors. Nothing herein shall prevent su 1 In the event e . No gnment shall be P. District in connection with the on with any nefit ofthe heirs, successors or assigns of Applicant, without of Applicant's rights under this Contract shall be subject IA and a 1 ‚1 ent of Contract rights and the assumption of Co ['Applicant's property I 1 applying to theDistriet by the District except upon completion and filing ofproper pursuant to this Contract is to be used for the benefit of land which is now or will subsequently be subdivided or held in sep te owuership,the Appli may only assign the Applicant's rights hereunder to: 1) No more than three sep Lis factory to the District; or 2) A homeowners association, water district, water d existing under the laws ofthe State ofCol °rad°, and then, only ifsuch parties, association or special district establishes to the satisfaction of the District that it has the ability and authority to perform the Applicant's obligations under this Contract. In no event shall the owner of a portion, but less than all, of the Applicant's property to be s under this Contract have owners all of whom shall be party to a well sharing and sanitation district or other special district properly any rights hereunder, except as such rights may mist pursuant to a well sharing agreement or through a homeowners association or special district as provided above. Upon the sale ofthercal property to which this Contract pertains, Applicant ent and change of ownership must be completed. 3 page 5 of 8 Ice buycraware of this Contract and proper 9. 0 Rules: Apphfr itshabe0 regulations of the Etoard of Directors of the District; and all 10. the District under ;4. Op- tionand and conditions d in its sole discretion that such an agreement is requ monetary consi on for the District which on trict deliv y arise *ugh- servi W$P Exhibit 5 y the provisions of the Water Conservancy Act nfCoi do; by the rules and f and supplements th - o and by all other applicable law. oe AcemanL Appti y the board D' aid d 4+40r ha I enter into "0 4 " ; n Distric(, if and when, th y th, but shall not be 11 dministration, op e Applicant. 44 44 ; .1r;. d mai ' t I . eAgr id D for d 1 n 11. Chance of Use: The Disinot the exalusive right to review, pprove or disapprove any proposed change in use of the ter allotted hereunder. Any use other than that set forth herein or any 1 a or sale of the water or water rights allotted hereunder without the prior wri 12. submitted to the D other than as set fo to be a ma ky approval of the District shall be ed to be a material Use and Mace ofUse: Appli the tune this Contra ct is 44 11 or any a 13. Title: It is und 444 4 sale ofthe water or y op feetftlein inuroanywatercrwnterrigbts 14. rights heavin, and hereby or water lights, 1; 444 WC this C d maintenan herein, other than as p herein Conservation: Applicant shall use cogunonly a tobe bound byany ervati on plan adopted her .4 4 11 donthepropertyd '44 ti 1" I 14 1 A d in the documents Applicant. Any use ve, shall be deemed itable or legat ion practices with respect to the w and thcDistrict for usa. 1 'strict owned or controlled water 15. Restrictions: Applicant shall restrict al diversions to not the formula ofone acre foot per dwelling) for ary household purposes inside one singl fire protection, and tho irrigation of lawn and garden as specified in the Applieation. Applicant shall also complywith all restrictions and limitations set of Water ' 11 the con aniow y dwelling, the wa 401 'di provides water (on g of domestic li in the well permit obtained from the Co 0 II ' • Watering of livestock shall be restricted to Applicant's domestic an be used for commercial purposes unless Applicant obtains approval the Col .1 'do Division ofWater Resources for conunercial use/livestock watering, provided that in no event shall actual diversions exceed the amount of water • "ded by this Contract. Violation of this paragraph 15 shall be deemed to be a material breach of this Contract. 16, Well Permit, If Applicant intends to divert through a well, then Applicant must provide to District a copy of Applicant's valid well pennit before District is obligated to deliver any water hereunder. 4 page 6 of 8 17. Meas PDC SW P rMeter: 41) Exhibit 5 11 t ag - to pmvide, at its own a device dee by the District's Engineer after consultation, or a totaliying flow meter with remote t taut to continuously and accurately m all water di pursuant to the s of Applicant's ter right and the 1 444 :41 $ such device or meter to District upon District's request. Appli of this Contract. Applicant a provide ac ed hat failure to comply with this p legal action tot- . Applicant's diversion of water by the State ofCoIora d o Division ofWater Res hereby specifically allows District, through its authorized agent, to enter upon Applicant's property purposes of d fining Applicant's . al use af water. 18. Appli.,s Lrnaybeheve advice from Appli or assurances water Appli 040 Re' en : Bycx i 44' .04 g this Contract," ived from the District. Appli : the District Appli oever about the quantity or quality of he ' 19, 1 44 h s V lk d 411 p Bysigning this Con 1 4 42 b e all times gs d result in Applicant ordinary business hours for the ot relying on any legal or engineering advice that wledges that it has ob ed all n ary legal and engineering er available pursuant to this 48 no d ages may be assessed against the District, nor s y Applicant 4 a the District makes no gu d the District be- refund t the District. 4 44 : 11114.4,. Filing and Augmentation Plan: Should the District, in i ate point of diversion or plan of augmentation, to the District, when assessed, an additional fee representing the District's actual and s nable p 144.14 such addi " the form . Applicant shall be assessed a pro-rata share of the total -s, 0 1: • 1! e. The pro-rata share shall be calcul District is caused additional costs costs may be charged specifically to Appli by the District in 11,4 • .44 by dividing such total cost by the number of contra 20. Binding Agree's' "Application to the D istrices engirt the District to App conditi f Ibis a OR 0 IS 1.1-1E C s 4. 4 d s w 74 cs, idethe discretion, choose to include Appli t h .4 It ' to pay fbrApptir tsshareofthe ng and pursuing to d the included in the filing. To the section filed s ' cally due to the inclusion of Appli and not sh Water From West Divide Water C a pro-rata basis by 41 con t Contract in the filing, be complctc nor binding upon thepistriet unless a . Said attachments shall by this reference thereto be inco g to or relating to this 21. Warninu: IT A tER RIGHT IN ORDER G D INCLUDING FILING FOR B1 • FM USE, ORO WASTE, S CO AU 22. CT IS LOCA TATION \VA ent is by this SOLE PONSIDILITYO ncy District" fully completed by Applicant and app into Nis a All co -:ponclence from into this a ment as further terms and S ONS OF PERMITS, FIL Y APPLYING A B. CO A : JFAPPLIC 0 • : A" AS DESIGNA PRO IPED BY DIS • CT WATER RIGHT FROM A C ON u COLORADO ' AND 0 1 R SENIOR RIGHT. NO REPRESENTATION 0 RWIS • 4 44 PLIC TO OBT' A VALID L P T ATER AC ER TIIIS CO CT. IT OF THE P T OR. WATER RIGHT TION REPORTS, 1 1 G STATE 1 OF C USE ON ARE /I BASIS OUT L OR 0 1 WA BY THE D S CO • C Y NOT PRO E BY THE DIS page 7 of 8 Y0 H APPI.MS: Y PROTECT APPLICANT'S FROM A, CALL FROM IS A CONCERN TO STATE OF OIVILIWIL) ) ss. CO OF ti\l,r4(11 ) CO 4 ititit 1,11 OR.Fli as acknowledged before me on this d and official seal. My ) ss. ) The oiegoing ins 4. I , 2O by --- - on .... t 6. it - ki igl. /L .1 / A A A Iia ..• day of 0 yo at sakt Application ATTEST: Secretary ORDER by by the Board of Di - ors of the West Divide Water Conservancy District an the Application, it is 1,1 l• ted and this Contract shall be and is accepted by the District 13y E WX CONSERVANCY 45F-- > 44,04 Date This Contract includes and is subject to ihe terms and conditions of the following documents which must accompany this Contract: 1. Map showing location of point of diversion (use map provid 2. Application and Data Form fully completed and signed page 8 of 8 P.O. Box 1908 1011 Grand Avenue Glenwood Springs, CO 81602 d/fZ NC4NELL4 4N0 455004 TES, INC. ENGINEERING CQNSUL74N35 April 8, 2013 Megan Sullivan, P.E. Office of the State Engineer Colorado Division of Water Resources 1313 Sherman St., Room 821 Denver, CO 80203 (970) 945 -5700 (970) 945 -1253 Fax Via E -Mail and U. S. Mali Re: Substitute Water Supply Plan Renewal Request for Petroleum Development Corporation, Case No. 2009CW16 Section 8, Township 6 South, Range 96 West, 6t" PM. Water Division 5, Water District 39 Dear Megan: Pursuant to C.R.S. § 37- 92- 308(4)(a)(IV)(b), we request renewal of Petroleum Development Corporation's (Applicant) substitute water supply plan (SWSP) associated with its Parachute Creek and Colorado River water rights applied for in Case No 09CW16. We submit this renewal request at least 90 days before the July 31, 2013 expiration of the SWSP. Please find enclosed a check made out to the Colorado Division of Water Resources in the amount of $300 for the required filing fee. Previous Approval The SEO approved the SWSP on August 9, 2012. A copy of the approval letter is enclosed as Exhibit A. Applicant requests renewal of the SWSP subject to the same conditions of approval with one exception: Applicant proposes to divert less water (see "Project Description" below). Notice We enclose a copy of the Notice and Certificate of Service demonstrating that all opposers in Case No. 09CW16, District Court, Water Division No. 5 have been notified of this renewal request, pursuant to § 37- 92- 308(4)(IV)(c), C.R.S. (Exhibit B). Status of 09CW16 Since this request is to extend the SWSP past three years from the initial date of approval, PDC provides the following information to comply with C.R.S. 37- 92- 308(4) and the conditions of the August 9, 2012 approval. On February 27, 2009, PDC applied to the Water Court for an augmentation plan in Division 5 Case No. 09CW16 to address out -of- priority depletions from the diversions that are the subject of this SWSP request. That case is still pending before the water referee. PDC has stipulated to a proposed decree with 9 of the 11 opposers in the case. Any delay in this case has been due to the number of opposers involved and the amount of engineering analysis requested. PDC continues to work to address the remaining opposers' concerns and recently provided a new revised ruling. PDC is confident it will be able to resolve the case through stipulated agreements and without a trial. Currently, PDC relies solely on the SWSP to continue its operations during times of a call. If the SWSP is not renewed, PDC would experience undue hardship and expense as it would be required to shut down its energy exploration and production operations during times of a call. Project Description Due to decreased demand for natural gas, Applicant has scaled back its exploration and production operations. Water demands associated with these operations have also decreased. Therefore, Applicant proposes to operate the SWSP with the same conditions of approval with the exception that diversions will be decreased from a total of 245 acre -feet to 153 acre -feet. Applicant previously held water allotment contracts with the CRWCD and WDWCD totaling 270 ac -ft annually. This made 245 ac -ft available for diversion by Applicant after the assessment of a 10% transit loss to the releases made under these contracts. Now Applicant only holds the CRWCD contract designated CW06004 for 170 ac -ft. Carrying forth the transit foss assumption of 10% assessed to the previous SWSP yields a total annual amount available for diversion by Applicant of 153 ac -ft. Applicant proposes to divert the water in same monthly pattern approved previously. The adjusted monthly diversions are included as Table 1, Conclusion. If the SWSP is implemented with the lower diversions set forth in Table 1 and otherwise under the same terms and conditions as the August 9, 2012 approval, Applicant's proposed diversions can occur without injury to other water rights. As a result, Applicant requests permission to operate this SWSP for an additional one -year period, during which time Applicant will continue its diligent efforts to obtain a decree in Case No. 09CW16. Thank you very much for your consideration. If you have any questions or concerns, then please contact our firm at your earliest convenience. Very truly yours, Zancanella & Associates, Inc. red Walter P.E. Encl cc: Ramsey Kropf z:126000126407 petroleum development corp120131swsp12013renewal Itr to seo.docx TABLE 1 Petroleum Development Corporation - 2013 SWSP Renewal Maximum Diversions, Depletions, and Releases (all values in acre -feet) (1) (2) (3) Months Diversions Depletions Releases January 8.80 8.80 9.68 February 8.80 8.80 9.68 March 15.71 15.71 17.29 April 16.97 16.97 18.67 May 16.97 16.97 18.67 June 16.97 16.97 18.67 July 16.34 16.34 17.98 August 15.09 15.09 16.59 September 11.94 11.94 13.14 October 8.80 8.80 9.68 November 8.80 8.80 9.68 December 8.80 8.80 9.68 Total 154.00 154.00 169.40 (1) Maximum diversions for industrial uses by PDC during 2013 SWSP term. (2) Equals (1), since diversions considered 100% consumptive, with no delayed impacts. (3) Equals (2) x 1.1 in order to account for 10% transit losses assesed to Wolford Mtn. Reservoir releases made under existing CRWCD Colorado River supply contract CW06004 up to 170 ac -ft annauly. Zancanella & Associates, Inc. Z: \26000 \26407 Petroleum Development Corp \2013 \SWSP \SWSPwater.xls Table 1 4/8/2013 EXHIBITA APPROVAL LETTER DEPARTMENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES August 9, 2012 Thomas A. Zancanella, P.E. Zancanella and Associates, Inc. Engineering Consultants P.O. Box 1908 1011 Grand Avenue Glenwood Springs, CO 81602 RE: Substitute Water Supply Plan for Petroleum Development Corporation Case No. 2009CW16 Section 8, Township 6 South, Range 96 West, 6th P.M. Water Division 5, Water District 39 Approval Period: August 1, 2012 through July 31, 2013 Contact Phone Number for Mr. Thomas A. Zancanella: 970 - 945 -5700 John W. Hickenlooper Governor Mike King Executive Director Dick Wolfe, P.E. Director /State Engineer Dear Mr. Zancanella: We have reviewed your March 23, 2012 request for a substitute water supply plan ( "SWSP ") on behalf of Petroleum Development Corporation ( "PDC" or "Applicant ") pursuant to § 37 -92- 308(4), C.R.S. PDC is a co- applicant in the pending application for approval of a plan for augmentation, including exchange in Division 5 Water Court case no. 2009CW16. This SWSP references the application filed in case no. 2009CW16 and PDC has provided notice of the SWSP to all counsel of record in case no. 2009CW16. That notice was sent on March 23, 2012. The State Engineer's Office ( "SEO ") did not receive any comments during the statutory 30 -day comment period. The statutory $300 filing fee (receipt no. 3654545) was submitted with the SWSP request. SWSP Description PDC is conducting industrial hydrocarbon exploration and production operations consisting primarily of a natural gas drilling program on lands it owns as well as on lands it leases, or leases mineral estate interests. As shown on the attached Exhibit 1, the majority of the exploration and production operations occur on lands located within the Parachute Creek drainage on the plateau top northwest of the Town of Parachute. Some of the exploration and production operations may also occur on lands within the Roan Creek drainage, on the Parachute Creek valley floor, and along the Colorado River. It is anticipated that PDC's industrial exploration and production operations water supply is needed for drilling, hydraulic fracturing, dust suppression, hydromulching, evaporation and other related uses. For the purposes of this SWSP, the above uses are considered 100% consumptive, therefore, the consumptive use is assumed to be equal to the gross diversions. All diversions made under this SWSP will be taken directly from surface water sources and be fully consumed. Office of the State Engineer 1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 - 866 -3581 • Fax: 303 - 866 -3589 www. water. state. co. u s Thomas A. Zancanella, P.E. August 9, 2012 Page 2of5 Diversions and Depletions Although PDC has applied for various points of diversion on Parachute Creek which are pending in the water court application in case no. 2009CW16, all diversions from Parachute Creek made under this SWSP will be taken at the Parachute Creek PDC Diversion. An application for a surface water right for the Parachute Creek PDC Diversion is pending in Division 5 Water Court in case no. 2007CW246. The Parachute Creek PDC Diversion is located on Parachute Creek in the SE 1/4 of the SE 1/4 of Section 8, Township 6 South, Range 96 West of the 6th P.M., at a point approximately 355 feet from the South section line and 1,240 feet from the East section line of said Section 8, in Garfield County. This location is adjacent to the existing road used as PDC's primary access to the plateau top. Chevron Shale Oil Company owns the land at the point of diversion. In case no. 2007CW246, the proposed use of water diverted at the Parachute Creek PDC Diversion is identified as industrial, commercial, energy exploration and development, mining, storage, evaporation, refining, power, domestic, agricultural, irrigation, and augmentation. You estimated that PDC's industrial exploration and production operations could use as much as 245 acre -feet of water during the approval period of this SWSP. As indicated above, all withdrawals of water from the Parachute Creek PDC Diversion are assumed to be 100% consumptive, therefore stream depletions will equal the gross diversion amount. The attached Exhibit 3 shows the anticipated monthly diversion amounts from Parachute Creek PDC Diversion. The diversion rate claimed for Parachute Creek PDC Diversion in case no. 2007CW246 is 2 cfs, therefore diversions made under this SWSP will not be allowed to exceed 2 cfs at any time. Replacement Sources PDC has entered into water supply contracts with the Colorado River Water Conservation District ( "CRWCD ") (Contract no. CW06004) and with the West Divide Water Conservancy District ( "WDWCD ") (Contract no. 020807PDC(a)), under which PDC is entitled to the delivery of water. The contract with CRWCD is for 170 acre -feet annually, and the contract with WDWCD is for 100 acre -feet annually, for a total of 270 acre -feet annually. Copies of the contracts were submitted with the SWSP and they are attached to this letter as Exhibits 4 and 5. The sources of replacement water from CRWCD were identified as Wolford Mountain Reservoir and Ruedi Reservoir. Wolford Mountain Reservoir is located on the Muddy Creek drainage and it was decreed by the Division 5 Water Court in case nos. 87CW283, 95CW281 and 98CW237. The Ruedi Reservoir water will be used in addition to, and in substitution for, Wolford Mountain Reservoir water when Ruedi Reservoir water can be used to supply water to downstream calling rights. Ruedi Reservoir is located on the Fryingpan River drainage and it was decreed in case nos. CA -4613 and 81CW34. The sources of water supply from WDWCD were identified as Green Mountain Reservoir, Ruedi Reservoir, Alsbury Reservoir, or other works or facilities of WDWCD. Green Mountain Reservoir is located on the Blue River drainage and it was decreed in case nos. CA -2782, CA -5016 and CA -5017. You have proposed to include a transit loss of 10% for all replacement water delivered under this SWSP. Based on an estimated transit loss of 10 %, a total of 269.5 acre -feet will need to be released to replace the 245 acre -feet estimated to be needed for industrial purposes. Although a transit loss of 10% is accepted for the purposes of this SWSP, the transit loss amount is subject to assessment and modification as determined by the division engineer. The projected schedule of the release of replacement water from CRWCD and WDWCD is shown on the attached Exhibit 3. Thomas A. Zancanella, P.E. August 9, 2012 Page 3of5 SWSP Operation When in priority, PDC will divert water from Parachute Creek at the Parachute Creek PDC Diversion to conduct its industrial exploration and production operations. At times there is no senior call from water rights on Parachute Creek, but there is a senior call on the Colorado River, PDC may continue to divert from Parachute Creek, provided adequate releases of augmentation water are made based on PDC's water supply contracts with the CRWCD and the WDWCD. At times there is an internal call placed by a water right on that reach of Parachute Creek downstream from PDC's point of diversion, PDC will cease diverting from Parachute Creek, but may divert from the Colorado River. Diversions from the Colorado River will be made in priority, or if out of priority, diversions will be made pursuant to adequate releases of PDC's leased augmentation water from CRWCD or WDWCD. The point of diversion from the Colorado River was identified as the Sinclair Pump and Pipeline, which was decreed on November 10, 1966 in case no. CA -4914, District Court, Garfield County. The point of diversion from the Colorado River is located on the northerly bank of the Colorado River at a point whence the W 1/4 corner of Section 23, Township 7 South, Range 96 West of the 6th P.M., bears South 62 degrees, 50 minutes West a distance of 4,605 feet. Water pumped from the Colorado River will be hauled to the exploration site. Diversions shall be limited to the monthly volumes shown in Exhibit 3, and shall not exceed the cumulative instantaneous flow rate of 2 cfs. All diversions shall be measured and recorded, and accounting will be submitted to the division engineer and the water commissioner. Diversions from the Colorado River can continue year -round under the terms of this SWSP. Diversions from Parachute Creek can continue under this SWSP at any time the applicable reach of the creek in not under local administrative call. At any time water is diverted from Parachute Creek or the Colorado River and hauled to the exploration site, a copy of an executed and current contract with the WDWCD and the CRWCD shall be available to the water commissioner upon immediate request, and in each of the hauler's truck(s). According to the application filed in Case No. 2009CW16, the Applicant does not own the land where the Parachute Creek PDC Diversion is located. This SWSP does not grant to the Applicant any easement, right -of -way, or other interest in the land where this point of diversion is located. Prior to use of the Parachute Creek PDC Diversion, the Applicant must obtain an easement, right -of -way, or other interest in the land and /or structures and provide a copy of such legal access to the water commissioner and division engineer. Conditions of Approval I hereby approve the proposed SWSP in accordance with § 37 -92- 308(4), C.R.S. subject to the following conditions: This SWSP shall be valid for the period of August 1, 2012 through July 31, 2013, unless otherwise revoked, modified, or superseded by decree. The initial date of approval for this SWSP was August 27, 2010 for operation beginning August 1, 2010. Pursuant to § 37-92 - 308(4)(b), C.R.S., "if an applicant requests a renewal of a plan that would extend the plan past three years from the initial date of approval, the applicant shall demonstrate to the state engineer that the delay in obtaining a water court decree is justifiable and that not being able to continue operating under a substitute water supply plan, until a decree is entered, will cause undue hardship to the applicant." This information must be submitted with any SWSP request that seeks a plan approval period that would extend beyond July 31, 2013. Additional SWSPs are required until a court decreed plan for augmentation is obtained for the proposed uses. Should an additional SWSP be requested, the provisions of § 37 -92- 308(4), C.R.S., shall Thomas A. Zancanella, P.E. August 9, 2012 Page 4 of 5 apply. The statutory fee of $300 will be required pursuant to § 37 -92- 308(8), C.R.S. Any request for an additional SWSP must be submitted to this office no later than May 1, 2013. 1 The name, address, and phone number of a contact person who will be responsible for the operation and accounting of this plan must be provided to the division engineer (Alan Martellaro, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970 - 945 - 5665), and the water commissioner (Eddie Rubin, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970 - 948 -2297) within 20 days of the receipt of this approval. 2. The use of water under this SWSP shall be limited to industrial uses associated with hydrocarbon exploration and production operations. When operating under this SWSP, the combined annual diversion from Parachute Creek PDC Diversion and the Sinclair Pump and Pipeline shall not exceed 245 acre -feet and the combined maximum division rate shall not exceed 2 cfs at any time. Additional diversion points /structures and /or additional uses for the water that is the subject of this SWSP will be allowed only if a new SWSP is approved for those additional structures /uses and such additional structures /uses are identified in case no. 2009CW16. Should a new SWSP be requested, the provisions of § 37- 92- 308(4)(b), C.R.S., shall apply. The statutory fee of $300 will be required pursuant to § 37 -92- 308(8), C.R.S. 3. Replacement water is to be supplied pursuant to the water supply contracts with CRWCD (No. CW06004) and with WDWCD (No. 020807PDC(a)), under which PDC is entitled to the delivery of 170 acre -feet annually from contract no. CW06004 and an additional 100 acre -feet annually from contract no. 020807PDC(a) for a total of 270 acre -feet annually. 4. At any time water is diverted from Parachute Creek or the Colorado River and hauled to the exploration site, a copy of an executed and current contract with WDWCD and CRWCD shall be available to the water commissioner upon immediate request, and in each of the hauler's truck(s). 5. Replacement water shall be made available to cover all out -of- priority depletions in time, place, and amount and shall be made available under the direction and /or approval of the water commissioner. The replacement water may be aggregated to maximize beneficial use. The water commissioner and /or division engineer shall determine the rate and timing of an aggregated release. 6. Conveyance loss for delivery of augmentation water to the Colorado River is subject to assessment and modification as determined by the division engineer and /or water commissioner. 7. The replacement water identified in this SWSP cannot be sold or leased to any other entity during the term of this SWSP without prior approval of the division engineer. 8. According to the application filed in Case No. 2009CW16, the Applicant does not own the land where the Parachute Creek PDC Diversion is located. This SWSP does not grant to the Applicant any easement, right -of -way, or other interest in the land where this point of diversion is located. Prior to use of the Parachute Creek PDC Diversion, the Applicant must obtain an easement, right -of -way, or other interest in the land and /or structures and provide a copy of such legal access to the water commissioner and division engineer. 9. All diversions shall be measured in a manner acceptable to the division engineer. The Applicant shall install and maintain measuring devices as required by the division engineer for operation of this SWSP. 10. The Applicant must submit accounting reports to the division engineer (Alan Martellaro, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970 - 945 -5665) and water commissioner Thomas A. Zancanella, P.E. August 9, 2012 Page 5 of 5 (Eddie Rubin, P.O. Box 396, Glenwood Springs, CO 81602, telephone 970 -948 -2297) on a monthly basis or other interval acceptable to both of them. The Applicant shall also provide an annual report to the division engineer and water commissioner by November 15th, which summarizes diversions and replacements made pursuant to this SWSP. Accounting forms are subject to modification and approval by the division engineer. Flow rates shall be reported in cfs, volumes shall be reported in acre -feet. 11. This SWSP may be revoked or modified at any time if it is determined that injury to other vested water rights has or will occur as a result of the operation of this SWSP. Should this SWSP expire without renewal or be revoked prior to adjudication of a permanent plan for augmentation, all diversions under this SWSP must cease immediately. 12. The decision of the state engineer shall have no precedential or evidentiary force, shall not create any presumptions, shift the burden of proof, or serve as a defense in the pending water court case or any other legal action that may be initiated concerning the SWSP. This decision shall not bind the state engineer to act in a similar manner in any other applications involving other SWSPs or in any proposed renewal of this SWSP, and shall not imply concurrence with any findings of fact or conclusions of law contained herein, or with the engineering methodologies used by the Applicant. Any appeal of a decision made by the state engineer concerning this SWSP pursuant to § 37 -92- 308(4), C.R.S., shall be to the Division 5 water judge within thirty days of the date of this decision and shall be consolidated with the application for approval of the plan for augmentation. Should you have any comments or questions, please contact Alan Martellaro, Division Engineer in Glenwood at 970 - 945 -5665 or loana Comaniciu in this office at 303 - 866 -3581. Sincerely, Jeff Deatherage, P.E. Chief of Water Supply Enclosures: Exhibit 1, Exhibit 3, Exhibit 4 and Exhibit 5 cc: Alan Martellaro, Division Engineer Eddie Rubin, District 37, 38, 39 and 45 Supervising Water Commissioner Counsel of Record, 2009CW16 Colorado River Water Conservation District West Divide Water Conservancy District JD /IDC /kaa: Petroleum Development Corporation 2012 SWSP (,-7 c, — '- r; Parachute Creek PDC Diversion Miles Imo" 0 0.5 1 2 1:11° 1 1 1 1 1. 3 JIJN 2006 General Location Map DRAWN 13Y: SCR ( III (K1 1) RV: 1AZ APPROVED BY: TAZ. (1.II.NI Petroleum Development Corp. L' ftK41411.f.4 .A/,4P .4sloG4 row, *4c, asmeemsaritiore Co l*s x4M1 POST OVF It: s BOX 1900 • 1011 (:RAND AVENUE GGFNwooD SPRINGS, COLORADO 04602 (70) 9414700 \.I 111111 1 Plt011 1 1: (1) Exhibit 3 Anticipated Diversions, Depletions, and Replacement all values in acre-feet (2) (3) (4) (5) (6) (7) Months Diversions Depletions Need For Replacement Replacement CRWCD WDWCD Total January 14.00 14.00 15.40 14.50 0.90 15.40 February 14.00 14.00 15.40 13.10 2.30 15.40 March 25.00 25.00 27.50 14.50 13.00 27.50 April 27.00 27.00 29.70 13.40 16.30 29.70 May 27.00 27.00 29.70 14.60 15.10 29.70 June 27.00 27.00 29.70 14.60 15.10 29.70 July 26.00 26.00 28.60 14.10 14.50 28.60 August 24.00 24.00 26.40 14.60 11.80 26.40 September 19.00 19.00 20.90 14.10 6.80 20.90 October 14.00 14.00 15.40 13.90 1.50 15.40 November 14.00 14.00 15.40 14.10 1.30 15.40 December 14.00 14.00 15.40 14.50 0.90 15.40 Total 245.00 245.00 269.50 170.00 99.50 269.50 (1) Months in Calendar Year order. (2) Anticipated diversions for industrial EP uses by PDC during SWSP term. (3) Equals (2), since diversions considered 100% consumptive, with no delayed impacts as explained in text. (4) Equals (3) times 1.1 in order to account for assessed transit losses. (5) CRWCD Colorado River supply contract CW06004 proposed release schedule. (6) WDWCD contract 020807PDC(a) proposed release schedule. (7) Equals (5) plus (6); matches (4). Zancanella & Associates, Inc. Z:126000126407 Petroleum Development Corp120101SWSPISWSPwater.xls Anticipated 3/30/2010 PDC SWSP Exhibit 4 CW060044 WATER SUPPLY CONTRACT This Contract is made between the COLORADO RIVER WATER CONSERVATION DISTRICT (herein the "River District"), a political subdivision of the State of Colorado acting by and through its Colorado River Water Projects Enterprise, and PEIR OLEUIVI DEVELOPMENT CORPORATION(herein "Contractor ") effective as of Duly 1 ,2006. RECITALS A, The River District is authorized to contract to deliver wager for beneficial use from River District water projects pursuant to provisions of C.R.S. § 3746 -101, et seq. (herein "River District Organic Act "). B. The River District is the owner and operator of the Wolford Mountain Reservoir Project located on the Muddy Creek drainage nearKremmliug, Colorado, having obtained necessary decrees from the District Court in and for Colorado Water Division No. 5 (herein "Water Court ") and permits from governmental agencies, and the River Districtis entitled to deliveries of waterfront Rucdi Reservoir under its Contracts with the U.S. Bureau of Reclamation, C. The River District's Board of Directors has adopted a Water Marketing Policy, as revised on April 19,2006, to provide for the use of water availablefrom the River District's sources of supply pursuant to contracts, and that WaterMarketingPolicy is to be implemented llirough the River District's Water Projects Enterprise. D. Contractor has a need for wholesale water supply, demonstrated in its submittals to the River Distt ictpursuant to the WaterMarketingPolicy's contractingprocess, in the amount of 170 acre feet annually for municipal/industrial purposes, which beneficialuses will be accomplished by Contractor in the vicinity of Parachute, Colorado, by surface and ground water diversions fiom or within the Parachute Creek drainage, which is a tributary to the Colorado River. E. Contractor has reviewed the Water Marketing Policy and is aware of the"' lydrology Assumptions" which are part of that Policy and is satisfied, based on its review and investigations, that Contractor•legally and physically can make use for its intended purposes of the Contracted Water which is the subject of this Contract and that such use will comply with the Water Marketing Policy and the Project's permits and decree. DEFINITIONS In this Contract certain terms will have definitions as stated below: a The "River District" means the Colorado River Water Conservation District created and existing pursuant to the River District Organic Act defined in Recital A and actingby and through its Colorado River Waterl'rojectsEnterprisewhich is currently page 1 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Page 2ofII CW06004 described and memorialized in the Resolution of the Colorado River Water Conservation District's Board of Directors dated April 20, 2005, • The " Project "n'icansthe River District's '' Colorado River Supply" horn (1) Wolford Mountain Reservoir, for which storage water right decrees were obtained by the River District in Cases No. 87CW283, 95CW2R 1 and 98CW237 District Court for Colorado Water Division No. 5, and for which additional storage waiter right decrees may be obtained in the future by the River District in other cases; and (2) the River District's contractual right to water deliveries from Ruedi Reservoir. • "Agricultural " the use of water for commercial production of agricultural crops and livestock and other uses consistent with any right decreed for irrigation purposes, which uses are made on a parcel of land of at least ten acres, • "Municipal and industrial" means the use of water by individuals, cities, towns, public or quasipublic districts, private corporations, homeowners associations, or other entities for domestic, municipal, and miscellaneous related purposes as those terms are traditionally and commonly construed, including the use of water for purposes of producing or proeissing a non - agricultural product or service for sale, including without limitations, such uses as manufacturing, mining, milling, land reclamation, golf course irrigation, snowmaking, and non - hydroelectric power generation; and including the use of water for environmental mitigation purposes associated with such uses; but exceptingtlte agricultural use of water defined herein. • "Contracted Water" means the water which is the subject of this Contract which is to be released and delivered by the River District and used by Contractor. The Contracted Water is 170 acre feet of Colorado River Supply available during each Project Year during the term of this Contract, subject to the provisions hereof, for Contractors use without right of carryover of any amount not used in any Project Year. • "Project Year" uneaus a period of time from July 1 through and including the subsequent June 30. • "Water Marketing Policy" means the River District's policy staterncntasaevisedand readopted April 19,2006, and as the same may be amended in the future. • "Project HydrologyAssumptions "or "'1-lydrologyAssuinpi ions " tneans the document attached asAppendix"A" to the Water Marketing Policy adopted on April 19,2006. page 2 of 11 WATER SUPPLY CONTRACT Page 3 of t t PDC SWSP Exhibit 4 AGREEMENTS CW46004 The foregoing Recitals and Definitions are incorporated herein as agreements between the River District and Contractor. 1, River District Water Delivery Obligations and Responsibilities. a. Delivery. The River District will deliver the Contracted Water at the outlet works of the Contracted Water's sources of supply into the receiving natural streams in quantitiesprovided herein. Unless otherwiseagreed to by the RiverDistrict's General Manager based upon written request of Contractor, the River District will makere leas es for Contractor,based upon Contractor's writtenseheduleofanticipated demand, adjusted as necessary by the ongoing status of river adrninistrationvis -a -vis the prioritystatus of Contractor's diversions, provided that the releases can be made within the 'operational limitations of the River District's project facilities as determined by the River District in its sole discretion. Contractor shall be solely responsible after delivery for the legal and physical delivery and use of the Contracted Water. b. DelivertContingencies, The RiverDistrict's delivery of Contracted Water shall be subject to Contractor's payments pursuant to paragraph 3 below and the provisions for curtailment of deliveries in paragraph 5 below. e. Water Measurements, The River District shall measure at the outlet works of the Contracted Water's sources of supply all Contr.-acted Water delivered from the account of Contractor and shall notify the Division Engineer of Colorado Water Division No. 5 of the date, time and amount of Contracted Water released and delivered pursuant to this Contract. Copies of such records shall be provided to Contractor upon its request therefor. d. Water Quality. The RiverDistrict shall have no obligationto Contractor or any other person regarding and makes no warranties or representations to Contractor concerning the quality of Contracted Water delivered pursuant to this Contract by releases of raw water to natural streams. e. llIaiutenance of Facilities. The RiverDistrictshall use its best efforts to maintain in good working condition the water storage and release facilities of the Contracted Water. C Withholding ofDelivea. The River District may withhold deliveries of Contracted Water in the event of Contractor's nonpayment for Contracted Water or any other breach of this Contract by Contractor. Such remedyshall not be the River District's exclusive remedy in the event of any such breach. page 3 of 11 WATER St1PP1.Y CONTRACT Page 4 of 11 g. PDC SWSP Exhibit 4 CW06004 Delivery from Primary or Alternate Sources. The River District will deliver the Contracted Water from the sources of Colorado River Supply described herein which will meet the Contractor's need to satisfy calls by senior water rights or the Contractor's physical need for any direct delivery of Contracted Water to Contractor's diversions. Subject to meeting those objectives, the River District reserves the right to provide all or any of the Contracted Water to Contractor from alternate reservoirs for Contractor's Rase, provided that the alternate sources are suitable to physically satisfy calls by senior water rights or Contractor's need for direct delivery. Any releases from alternate lei lities shall not diminish the supply of Contracted Water. 2. Contractor's Water Use Obligations and Responsibilities. Scheduling of Contractor has provided the River Districta preliminary written schedu lc of its anticipated monthly demands for Contracted Water during the current Project Year. Ile schedule provided by Coritractorin its application forth is (:raniract shall serve as the schedule to be used mill it is modified in a written notice given by Contractor to the River District, or as necessary in response to river administration of the Contractor's diversions. The schedule shall identify the volume of any Contracted Water anticipated by Contractor not to be needed by it during any particularProject Year. Contractor shall update said schedule periodicallydauing the Project Year as conditions requireand give the River District written notice o f all such revisions. b. Catiiage Losses. Contractor shall bear carriage losses in such amount as is determined by the Division Engineer for Colorado Water Division No. 5, from the point of del ivery ofContnactcd Water to Contractor 'spoint(s)ofuseandlorexchange or augmentation. Use Per Contract and Law. Contractor's use of Contracted Water shall in all instances he in accordance with the terms of this Contract, the Water Marketing Policy, as it may change fi orn time to time, and in accordance with applicable law and all decrees related to the Contracted Water. Contractor i is not authorized to apply for or secure any change in the water rights for or associated with any of the sources of supply of the Contracted Water. d. Legal Approvals. Contractor shall at its sole expense adjudicate a plan or plans for augmentation or exchange and/orseeure administrative approvals of any temporary substitute supply plans which are needed for Contractor to use its Contracted Water. Any such plans shall identify Wol ford Mountain Reservoir and Ruerli Reservoir as thesourcesofsupply. Ifnecessary ,Contractorshallamend the applicationto identify both of the River District's sources ofsupply. If Contractor intends to make any such page 4 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Page 5 of 11 CW06004 applications for any augmentation or exchange plan(s) or substitute supplypian(s), Contractor shall submit the proposed application to the River District within a reasonable time before Contractor proposes to file such application. The River Districtshall reviewforwritten approval such appli cations before they are submitted or hied, and the River District's approval shall not be unreasonably withheld. The River District may in its discretion become a coapplicaut in the prosecution of any such applications for the purpose of protecting its water rights and related policies. Contractor shall cause to be included in any final decree of the Water Court a provision conditioning Contractor's use of the Contracted Water on the existence of a River District contract, e. Lirnitation on Disposition. r. Contractorshal l not sublet, sell, donate, loan, assign or otherwise dispose of any 'ofits rights to this Contractor to Contracted Waterwithoutprior written notice to, and the written approval of, the RiverDistrict and the payment of a transfer fee at the prevailingrate set forth in the Water Marketing Policy. The River District's approval of such disposition shall be granted in all instances in which the Contractor is transferring the water system which supplies the Contacted Water, or a permanent transfer of the Contract is to be made to a successor in interest of Contractor by reason of the transfer of the title or other legal right to use the property served by the Contracted Water, or where the transfer is made to an entity such as a homeowners' association or special district created to serve the property originally represented to the River District to be served with the Contracted Water. ii. Upon assignment, the price of the fixed component will remain as stated in the original Contract ifthe water will continue-to serve the property originally represented to the River District to be served with the contracted water and: (1) the assignment is made simply to reflect a change in name of the Contractor; or (2) the assignmentis from Contractor to an entity that acquired a 100% interest in Contractor. In all other assignrnentsnot specified above, the fixed component will be charged at the then cerrent price determined by the River District Board or Directors. f, Contractor's Water Rates. Contractor may charge its water customers who are supplied with Contracted Water such rates and charges as are permitted byColorado law. g. Nondiscrim'nation. Contractorsha [l not discriminate in the availabilityoforCharges for any water service or water supply made available pursuant to or based upon the Contracted Water on account of race, color, religion, or national origin or any other criteria prohibited under state or federal law. page 5 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT P4ge6 of 11 CW06004 h. Accounting of Use. Contractor shall maintain an accounting of its use of all water used or supplied by Contractor on fora a(s) acceptableto the RiverDistrictspecifically for the impose of enabling the River District to prove the use of River District Project water rights and to administerand operate the Projectand water ri ght decrees and/or administrative approvals related to Contractor's use of Contracted Water. Contractor shall submit its accounting forms and records to the River District promptly upon request and shall assist theRiverDistrictas it may reasonablyrequest in presenting and/or verifying such evidence ofuse in court or before administrative agencies by testimony of Contractoror its authorized and informed officersor agents. r. Contractor shall consult with the Anny Corp of Engineersto ensure conlpliancewith Section404 of the Clean Water Act as the result of the construction of any facilities necessary to use the Contracted Water. 3_ Contractor's Payments. a. In addition to the applicationfee already paid by Contractor, in order for the River District's delivery obligationto become effective on July 1,2006, Contractorshall pay to the River District on the execution of this Contract the total sum of $21,250.00, being $125.00 for each acre foot of 170 acre feet of Colorado River Supply (the Contracted Water) for the Project Year July 2006 through June 2007, It is understood that the River District's delivery obligation shall become effective on July 1 ,2006. Thereafter, on or before April 1' of each year Contractor shall pay to the River District that amount, or the adjusted amount as provided below, for the next upcoming Project Year. b. The price of $125.00 per acre foot of Colorado River Supply Conn-acted Water includes a fixed component and a variable component. The variable component is based on Project operation and maintenance in the amount of $25.00 for Colorado River Supply. The variable component shall be adjusted annually based on the Boulder - Denver - Grceley Metro Area Consumer Price Index ( "All. Items ") and Contractor's subsequent annual payinents for Contracted Water shall be adjusted accordingly. c. Contractor also shall pay any special assessment levied by the River District on Contractorto recoupexpenscs from extraordinarymaintenance incurred by the River District or assessed upon the River District by its third party water suppliers. 4. Contract Torm. a. Subject to the provisions of paragraph 6 below, the initial tend of this Contract shall be for a period of up to forty (40) years from the date of the execution of this page 6 of 11 PDC SWSP Exhibit 4 WATER SIJPPL ' CONTRACT Page 7 of 11 Contract. CW06004 b. Upon the completion of the initial term and subject to the provisions of paragraph 6 below, Contractorshall have the right to renew this Contract for a secondarytenn of thirty -five (35) years, which shall couunence upon the expiration of the initial terra. If Contractor desires to so renew this Contract, it shall provide the River District written notice of its intention to do so at least ninety (90) days priorto the expiration of the initial term of this Contract. Thereafter, and prior to the expiration of the initial terra, the River Districtoad Coutrac tor s hat lexecute asupplementalagreernernt ofrenewal in a foma mutually acceptable to theRiverD istrictand Contractor. If such notice of intentionto renew is not provided and such supplemental agreement is not executed, no renewal term shall commence. c. Upon renewal, the followingtenns of this Contractshall be subjectto renegotiation: i. The charge for and adjustment of operation and maintenance may be increased or modified based upon the adequacy of the charge and its modification under this Contract to cover the River District's operation and maintenance costs actually experienced during the initial term. ii. The need or appropriateness of any conservation plan concerning Contractor's use of Contracted Water as determined by the River District. d. Upon renewal, the price of water shall be based on the then current water price as deterrruned by the River District's Board of Directors. 5, Water Shortage. In the event that the River District is unable, because of either legal or physical reasons (including, but not limited to, hydrologic shortages and operational restrictions), to deliver any or all of the full amount of water contracted from the Project, including the Contracted Water, the River District reserves theright to apportion theProj ect's available waterarnong its several contractors, including C ontractor, in the manner provided in Section 6 ofthe Water Marketing Policy. 6. Contract Termination. a. Termination by River District. The River District may terminate this Contract for any violation or breach of the terms of this Contract by Contractor, including Contractor's failure to pay timely any sum or amount due under this Contract within thirty (30) days after receivingwritten notice from the River District of such breath. page 7 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Pic;e 8 of 1 CW06004 ii. The River District also may terminate this Contract if, hi its discretion any judicial oradministrativeproceedings initiatedbyContractoris contemplated in subparagraph 2.d above, threaten the River District's authorityto contract for delivery of Project Water or the River District's water rights, permits, or other interests associated with the Project. iii. The River District may terminate this Contract if its legal ability to deliver Contracted Water is materially impaired or is eliminated because of the termination or adverse modification of permits, decrees or other authorizations which are needed to deliver the Contracted Water. b. Terminationby Contractor: r. Contractormayterininatethis Contract in its entiretyfor any reason by giving the River District at least thirty (30) days advance noticepriorto the due date of Contractor's next annual payment. ii. Every fifth year after the year in which this Contract is executed, Contractor may partially terminate this Contract as to the amount of Contracted Water by giving the River District at least thirty (30) days advance notice prior to the due date of Contractor's next annual payment. Partial termination by Contractor shall not exceed more than fifty percent (50 %) of the amount of Contracted Water which is then under contract. iii. Within thirty (30) days of final approval of the Water Court application contemplated by paragraph 2.d., Contractor may by written notice to the River Distric tparti ally tenninatethis Contract a s to the amount of Contracted Water which is not needed under that approval. c. Notice of Terrination to Affected Officials. The River District will notify the Division Engineer and any other appropriate governmental officials of any full or partial contract termination except for any partial termination under subparagraph G.a.(iii). 7. Conversionto Upfi- ontPayrnerxt. Within three (3) years after the date ofthe execution of this Contract, Contractor may convertto an upfront payment by givingtheRiver• District at least thirty (30) days advance notice prior to the due date of Contractor's next annual payment. On or before the following April I ", Contractor shall pay to the River District $157,250.00, being $900.00 for each acre foot of Contracted Water plus $25.00 for variable amount for each acre foot of Contracted Water. Thereafter, on or before each April 1" during the remaining term of this Contract, Contractor shall pay the River District the variable component amount, as it may be adjusted as provided below, for the next upcoming Project Year. The annual variable amount payment of Contractorshall be adjusted annually based page 8 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CO NTRACT Page9 all CW06004 on the Boulder- Denver- GreeleyArea ConsurnerPrice Index ("All Items ") and Contractor's subsequent annual payments for Contracted Water shall • be adjusted accordingly. If Contractor exercises the option to convert to an upfront payment, subparagraph 6.b.i shall become null and void. 8. Miscellaneous /Standard Provisions. a, Notices. i. All notices required or appropriate under or pursuant to this Contract shall be given in writinginailed or delivered to the parties at the following addresses: River District: Colorado River Water Conservation District Attention: Secretary / General Manager 201 Centennial Street, Suite 200 P. 0. Box 1120 Glenwood Springs, Colorado 81602 Phone: (970) 945 -8522 Fax: (970) 945 -8799 Contractor: Petroleum Development Corporation Attn: Joe Veltri, Pipeline Supervisor 103 Bast Main Street P. 0. Box 26 Bridgeport, WV 26330 Phone: (304) 842 -6256 Fax: (304) 326-2578 with copy to: Ramsey L. Kropf, Esq. Patrick Miller & Kropf, P.C. 730 East Durant Avenue Aspen, CO 81611 Phone: (970) 920 -1028 Fax: (925 -6847 .kropf waterlaw_corn page 9 of 11 PDC SWSP Exhibit 4 WATER SUPPLY CONTRACT Page l' o i l l CW06004 ii. Either party may, by written notice given in accordance with this provision, change the address to which notices to it shall be mailed or delivered. Amendments. No amendment, modification, or uovation of this contract or its provisions and implementations hall be effectiveunless documented in writingwhich is approved and executed by both parties with the same formality as they have approved and executed this Contract. c. This Contract is subject to the Rivet-District's Water Marketing Policy, as it may be revised from time to time by the River District's Board, COLORADO RIVER WATER CONSERVATION DISTRICT acting by and through its Colorado River Water Projects Enterprise DATE %/710G By: ✓ , � � R. Eric Kuhn, General Manger /Secretary ATTEST: David H. Merritt, ChiefEngineer /.Asst. Secretary PETROLEUM ELOPMENT CORPORATION By: page 10 of 11 ,,rolk. j tat (Name) rs.-1 � .:�1 �Irr' (Title) 4' WATER SUPPLY CONTRACT Page 11 of 11 STATE OF COLORADO ) COUNTY OF GARFIELD ) ss. PDC SWSP Exhibit 4 VERIFICATION CW06004 The foregoing Water Supply Contract was subscribed and sworn to before me by R. Eric Kuhn as General Manager /Secrctary atid David H. Merritt as ChiefEngineeriAssistatrt Secretary of the Colorado River Water Conservation District, acting by and through its Colorado River Water Projects Enterprise this "7111 day of , t 4td Y t , 2006. Witness nay hand and official seal. My Commission Expires: My Commission Expires 07111J2Q07 STATE OF COLORADO ) )ss. COUNTY OF ,s _._..a The foregoing Water Supply Contract was subscribed and sworn to before me by DeWa2.tLLJ. erz=eah, --f g. _ as_ita.c_ 1.-- es,z�f�,�rf for Petroleum DeveloprentCorponition this 6/ ' day of ,_72:. /y , 2006. Witness my hand and official seal. My Commission Expires: /9r1v d: fr. 76 ,--22,1e/ lT OFFICJALSEAX; NOTARY PUBLIC . SCATE OF WESTVIR31NIA MISTY L_ MOH '.;t7:0 My coolission espiasOolobet1g2D #1 Notary Public page 11 of 11 S! Gtu ?eni.fc@uary 2004 PDC SWSP Exhibit 5 APPLICATION TO AM.,S'ND WATER LEASE FROM WEST DIVIDE WATER CONSERVANCY DISTRICT 1.09 West Fourth Street, P. O. Box 1478, Rifle, Colorado 81650 1. APPLICANT INFORMATION Name: Petroleum D evelopment Corporation Mailing address: 3801 Carson Avenue Evans, Colorado 80620 Telephone: (970) 506 -9272 Authorized agent: Dewey Gerdom 2. COURT CASE €I's: Decree Case No, N/A Augmentation PIan Case No. 3. USE OF WATER ❑ RESIDENTIAL (check applicable boxes) ❑ Ordinary household use Number of dwellings: ❑ Subdivision: No. constructed units: No. vacant lots: ❑ Home garden/lawn irrigation of sq. ft. Method of irrigation: ❑ flood ❑ sprinkler 0 drip ❑ other ❑ Non - commercial animal watering of animals ❑ Fire Protection Well Sharing Agreement for multiple owner wells must be submitted. ❑ COMMERCIAL (check applicable boxes) aber of units: Total sq. fi. of commercial units: .,scription of use: d INDUSTRIAL Description of use: Drilling of Oil and Gas Wells Evaporation: Maximum water surface to be exposed: NIA, Description of any use, other than evaporation, and method of iversion, rate of diversion, and annual amount of diversion of any ,eater withdrawn from the pond: N/A 3 MUNICIPAL )escription of use: 1. SOURCE OF WATER structure: N/A Structure Name: N/A ;ounce: ['Surface ❑Storage ❑Ground water :urrent Permit # (if applicable) g Direct Pumping: Tributary: ^Main Stem Colorado River , ocation: __Debequc, Colorado (See No. 5) °CATION OF STRUCTURE Mesa Aunty Quarter /quarter Quarter Contract #020807PDC(a) Map #446 Date Activated 8/7/02 Date Amended 1 /1/05 Section Township Range Principal Meridian _27 & 28 85 - 97W 6`s P.M. Distance of well from section lines: N/A Elevation_NIA. Well location address: NIA (Attach additional pages for multiple structures) 6. LAND ON WHICH WATER WILL BE USED (Legal description may be provided as an attachment) N/A Number of acres in tract: inclusion into the District, at Applicant's expense, may be required. 7. TYPE OF SEWAGE SYSTE14I ❑ Septic tank/absorption leach field ['Central system ❑Other District name: N/A 8. VOLUME OF LEASED WATER NEEDED IN ACRE FEET: 100_ (minimum of 1 acre foot) Coast 0t5 Provide engineering data to support volume of rvater requested. Commercial, municipal, and industrial users trust provide diversion and consumptive data on a monthly basis. A totalizing flow meter with remote readout is required to be installed and usage reported to West Divide. Applicant expressly acknowledges it has had the opportunity to review the District's form Water Allotment Contract and agrees this application is made pursuant and subject to the terms and condition ntained therein. Apple 6 -2004 Applicant Signature Applicant Signature DATE APPROVED: - - n) e 4C ec , WEST DIVIDE WATER CONSERVANCY DISTRICT t t\ e page 1 of 8 Revised Idarc11 201 PDC SWSP Exhibit 5 APPLICATION TO LEASE WATER FROM WEST DIVIDE WATER CONSERVANCY DISTRICT Contract #020807PDC(a) Map #996 Date Activated 8/7/02 I._ APPLICANT INFORMATION 5. LOCATION OF STRUCTURE Name: e .6e/6-60/706,7J--..or 04I I exprmo County Quarter/quarter Mailing address: r:,70 7,s ,2912- S ice. G /J[, f =' rS 6K4.1,uf l'tla 1"0 :r) Telephone: 470 - .. S z.7 Authorized agent: "--"ti. �. r 6�y �+ 2. WATER COURT CASE # 4. 3. USE 01? WATER O RESIDENTIAL (check applicable boxes) 0 Ordinary household use Number of dwellings: O Subdivision: No. constructed units: No. vacant Iots:_ O Home garden/Iawn irrigation of sq. fl- Method of irrigation: 0 flood 0 sprinkler O drip 0 other O Non.-commercial animal watering of animals Well SharirtgAgreementfor multiple owner wells must be submitted O COMMERCIAL (check applicable boxes) .)ber of units: Total sq. it. of commercial units: ..6eription of use: WINDUSTRIAL Description of use: i7/2/.r Q { D Evaporation: Maximum water surface to be exposed: /W4. Description of any use, other than evaporation, and method of iiversion, rate of diversion, and annual amount of diversion of any water withdrawn from the pond: ,ti. J MUNICIPAL escription of use: I. SOURCE OF WATER structure: /i%.." itzucture Name: .27 :2 yS 970 Quarter Section Township Range Principal Meridian Distance of well from section lints j.i¢ . Elevation: .U, Well location address: A%: (Attach additional pages for multiple structures) 6. LAND ON WHICH WATER WILL BE USED (legal description may be provided as an attachment:) Number of acres in tract: Inclusion into the District, at Applicant's expense, may be required 7. TYQE OF SEWAGE SYSTEM 0 Septic tanklabsorption Ieach Reid ©Central system ©Other District name: AM. 8. VOLUME OF LEASED WATER NEEDED IN ACRE FEET: 2.5 (minimum of 1 acre foot) Leased amount based on diversions unless consractee has an augmentation plan or submits supporting monthly engineering data. Commercial, municipal, and industrial users must provide diversion and consumptive data on a monthly basis. A totalizing-flow meter with remote readout is required to be installed al the time the well is drilled and usage reported to West Divide, upon request Applicant expressly acknowledges it has had the opportunity to review the .District's form Water Allotment Contract and agrees this application is made . ursuant and subject to the terms and conditions con( 'teed eiu. Applicant Signature source: ©Surface °Storage °Ground water r, -.went Permit # ir..). 4 . (if applicable) : act Pumping: Tributary: "VIVA) -51,—.101. (7611-654 .00 gtei Application Date: AD' cation: ...-> _ page 2 of 8 REVISED August 2001 PDC SWSP Exhibit 5 Contract #020807PDC (a ) Map #446 Date Activated 8/7/02 WEST DIVIDE WATER CONSERVANCY DISTRICT WATER ALLOTMENT CONTRACT Name of Applicant: .2c) L,'4if cJGCV „,a�'e— t.�a,��fo•e� Quantity of Water Ai Acre Feet: /w7 AJ U (2 6- Applicant, hereby applies to the West Divide Water Conservancy District, a political subdivision of the State of Colorado, organized pursuant to and existing by virtue of C.R.S. 1973, §37- 45- 1O1,etseg.,(hereinafter referred to as the 'District”) for an allotment contract to beneficially and perpetually use water or water rights owned, Ieased, or hereafter acquired by the District. By execution of this Contract and the attached Application, Applicant hereby agrees to the following terms and conditions: WaterRiehts: Applicant shall own water rights at the point of diversion herein lawfully entitling Applicant to divert water, which will be supplemented and augmented by water teased herein. If Applicant intends to divert through a well, it must be understood by Applicant that no right to divert exists until a valid well peni,,it is obtained from the Colorado Division of Water Resources. 2. Quantity: Water applied for by the Applicant in the amount set forth above shall be diverted at Applicant's point of diversion from the District's direct flow waterrights, and when water is unavailable fordiversion pursuant to administration by the Colorado State Engineer during periods when said direct flow water right is not in priority, theDistrict shall release for the use of Applicant up to said quantity in acre feet per year of storage water owned or controlled by the District. It is understood that any quantity allotted from direct flow, storage or otherwise, to the Applicant bytheDistrict will be limitedbythe priorityoftheDistrict=s decrees and by the physical and legal availabilityofwater from District's sources. Any quantity allotted will only be provided so long as water is available and the Applicant fully complies with all of the terms and conditions of this Contract. The District and the Applicant recognize that some of the District's decrees may be in the Warne of the Colorado River Water Conservation District, and the ability of the District to allot direct flow right to the Applicant may be dependent on the consent ofthe Colorado River Water ConservationD istrict. Hat any time the Applicant determines it requires less water than the amount herein provided, Applicant may so notify the District in writing, and the amount of water allotted under this Contract shall be reduced permanently in accordance with such notice. Rates shall be adjusted accordingly in following water years only. 3. Beneficial Use and Location of Beneficial Use: Any and all water allotted Applicant by the District shall be used forthe following beneficial use or uses; industrial, rnunicipaI, domestic andrelated uses, or commercial (except for 'commercial use from Atsbury Reservoir and except to the extent that Ruedi Reservoir water may not be available for commercial as that tern is defined on Page 5 of Contract No. 2-07-70-W0547 between the United States andthe West Divide Water ConservancyDistrict )..Applicant's beneficial use ofany and all water allotted shall be within or through facilities or upon land owned, leased, operated, or under Applicant's control. ( 4. Decrees and Delivery: Exchange releases made by the District out of storage froth Ruedi Reservoir, Green Mountain Reservoir, AlsburyRcsetvoir, or other works or facilities ofthe District, or from other sources available to the District, shall be delivered to the 1 pace 3 of 8 PDC eS it 5 Applicant at the outlet works of said storage facilities or at the oteeredpoint of d avers ion for said other sources, and release or delivery of water at such outlet or points shall constitute performance of the District's total obligation. Delivery of water by the District from Ruedi Reservoir or Green Mountain Reservoir shall be subject to the District's lease contracts with the United States Bureau ofReckamation. Releases from other facilities available to District shall be subject to the contracts, laws, rules, andregulations governing releases therefrom. Furthermore, the District hereby expressly reserves the right to store water and to make exchange releases from structures that may be built or controlled by the District in the future, so long as the water service to the Applicant pursuant to this agreement, is not unpaired by said action. Any quantity ofthe Applicant's allocation not delivered to or used by Applicant by the end of each water year (October 1), shall revert to the water supplies ofthe District. Such reversion shall not entitle Applicant to any refund of payment made for such water_ Water service provided by the District shall be limited to the amount of water available in priority at the original point of diversion ofthe District's applicable water right, and neither the District, nor those entitled to utilize the District's decrees, .may call on any greater amount at new or alternate points of diversion. The District shall request the Colorado Division of Water Resources to estimate any conveyance losses between the original point and any alternate point, and such estimate shall be deducted from this amount in each case. Water service provided by the District for properties located within the Bluestone and Silt Water Conservancy Districts is provided pursuant to Agreements with said Districts. The intergovernmental Agreement between the District and the Silt Water Conservancy District, dated January 25, 2001, is recorded as Reception No. 575691, Garfield County. Clerk and Recorder's Office. The Intergovernmental Memorandum of Understanding between the District and the Bluestone Water Conservancy District, dated April 26, 2001, is recorded as Reception No. 584840, Garfield County CIerk and Recorder's Office. 5. AlternatePointofDivers ion artd Plan ofAut nentation: Decrees for alternatepointsofdiversionoftheDis trict'swater rights or storage water may be required in order for Applicant to use the water service contemplated hereunder. Obtaining such decree is the exclusive responsibility of Applicant. The District reserves the right to review and approve any conditions which may be attached to judicial approval of said alternate point of diversion as contemplated or necessary to serve Applicant's facilities or lands. Applicant acknowledges and agrees that it shall be solely responsible for the prodedures and legal engineering costs necessary for any changes in water rights contemplated herein, and further agrees to indemnify the District from any costs or losses related thereto. Applicant is solely responsible for providing works and facilities necessary to obtain/divert the waters at said alternate point of diversion and deliver them to Applicants intended beneficial use. Irrespective ofthe amount of water actually transferred to the Applicant's point of diversion, the Applicant shall make annual payments to the District based upon the amount of water allotted under this Contract. In the event the Applicant intends to apply for an alternate point ofdiversion and to develop an augmentation plan and institute legal proceedings for the approval of such augmentation plan to allow the Applicant to utilize the water allotted to Applicant hereunder, the Applicant shall give the District written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to utilize the water allotted hereunder, Applicant shall not be obligated to payany amount wader Paragraph 19 below. In any event, tlae District shall have the right to approve or disapprove the Applicant's augmentation plan and. the Applicant shall provide the District copies of such plan and of all pleadings and other papers filed with the water coat in the adjudication thereof 6. Contract Payment: Non - refundable, one time administrative charge, in the amount determined by the Board of erectors ofthe District from, time to time, shall be submitted with the application for consideration by tire. District. 2 page 4 of 8 pC�C WSP tlet Annual payment for the water service der a ererrr s e deterxxnined bytheBoard ofDirectors ofthe District. The initial annual payment shall be made in full, within thirty (30) days after the date of notice to the Applicant that the initial payment is due. Said notice will advise the Applicant, among otherthings, ofthe water deliveryyearto which the initial payment shall apply and the price which is applicable to that year. Annual payments for each year thereafter shall be duo and payable by the Applicant on or before each January 1, If an annual payment is not made by the due date a flat S50 late fee will be assessed. Final written notice prior to cancellation will be sent certified mail, return receipt requested, to the Applicant at such address as may be designated by the Applicant in writing or set forth in this Contract or Application. Water use for any part of a water year shall require payment for the entire water year. Nothing herein shall be construed so as to prevent the District from adjusting the annual rate in its sole discretion for future years only. Jfpayment is not made within fifteen (15) days after the date ofsaidwritten notice, Applicant shall. at District's sole option have no furtherright, title or interest under this Contract without further notice, and delivery may be immediately curtailed. The allotment ofwater, as herein made, may be transferred, leased, or otherwise disposed of at the discretion of the Board of Directors ofthe District. Upon. cancellation of this water allotment Contract with the District, the District shall notit'theDivision of Water Resources offices in Denver and Glenevood Springs. The Division of Water Resources may then order cessation of all water use. 7. Additional Fees and Costs: Applicant agrees to defray any expenses incurred bytheDistrict in connection with the allotment of water rights hereunder, including, but not limited to, reimbursement of legal and engineering costs incurred in connection with any water rights and adjudication necessary to allow Applicant's use of such allotted water rights. 8. Assianment: This Contract shall not inure to the benefit of the heirs, successors or assigns of Applicant, without the prior written consent ofthe District's Board ofDirectors_ Any assignment of Applicant's rights under this Contract shall be subject to, and must comply with, s requirements as the Districtmay hereafter adopt regarding assignment of Contract rights and the assumption of Contract obligations by assignees and successors. Nothing herein shall prevent successors to a portion ofApplicant's property from applying to the District for individual and separate allotment Contracts. No assignment shall be recognized by the District except upon completion and filing ofproper forms for assignment and change of ownership. In the event the water allotted pursuant to this Contract is to be used for the benefit of land which is now or will subsequently be subdivided or held in separate ownership, the Applicant may only assign the Applicant's rights hereunder to: 1) No more than three' separate owners all of whom shall be party to a well sharing agreement satisfactory to the District; or 2) A homeowners association, water district, water and sanitation district or other special district properly organized and existing under the laws ofthe State ofColorado, and then, only ifsuch parties, association or special district establishes to the satisfaction ofthe District that it has the ability and authority to perform the Applicant's ob)igations under this Contract. In no event shall the owner of a portion, but less than all, of the Applicant's property to be served under this Contract have anyrights hereunder, except as such rights may exist pursuant to awell sharing agreement or through a homeowners association or special district as provided above. Upon the sale ofthe real propcntyto which this Contract pertains, Applicant shall make buyer aware ofthis Contract and proper forms for assignment and change of ownership must be completed. 3 page 5 of 8 PDC $WSP Exhibit 5 9. OtherRules: Applicant shall be bound by the provisions ofthe -Water ConservanoyAct ofColorado; by the rules and regulations ofthe Board of Directors ofthe District; and all amendments thereof and supplements thereto and by all other applicable law. 10. Operation and Maintenance Asreei lent: Applicant shall enter into an "Operation andMaintenanceAgrcementt "with theDistrict under terms and conditions determined by the board ofDirectors ofthe District, if and when, the Board of said District determines in its sole discretionthat such an agreement is required. Said agreementnaay contain, but shall not be limited to, provisions for additional annual monetary consideration for extension of District delivery services and for additional administration, operation, and maintenance costs; or far other costs to the District which may arise through services made available to the Applicant. I I _ Chancre of Use: TheDistrict reserves the exclusive right to review, reapprove or disapprove any proposed change in use of the water allotted hereunder. Any use other than that set forth herein or any lease or sale of the water or water rights allotted hereunder without the prior written approval of the District shall be deemed to be a material breach ofthis Contract. 12. Use and Place of Use: Applicant agrees to use the water inthemannerand onthe prop erty des ailed in the documents submitted to the District at the time this Contract is executed, or in any operation and maintenance agreement provided by Applicant. Any use other than as set forth thereon or anyleaseor sale of the water or water rights herein, other than as permitted in paragraph 13 above, shall be deemed to be a material breach of this agreement. 13. Title: It is understood and agreed that nothing herein shall be interpreted to give the Applicant any equitable or legal fee title interest in or to any water or water rights referred to herein. 14_ Conservation: Applicant shall use commonly accepted conservation practices with respect to the water and water rights herein, and hereby agrees to be bound by any conservation plan adopted hereafter bytheDistrict for use ofDistrict owned or controlled water or water rights. 15. Restrictions: Applicant shall restrict actual diversions to not exceed the contract amount, which provides water (on the formula of one acre foot per dwelling) for ordinary household purposes inside one single family dwelling, the watering of domestic livestock, fire protection, and the irrigation of Iawn and garden as specified in the Application. Applicant shall also comply with all restrictions and limitations set forth in the well permit obtained from the Colorado Division of Water Resources. Watering of livestock shall be restricted to Applicant's domestic animals not to be used for commercial purposes unless Applicant obtains approval from the Colorado Division ofWater Resources for commercial use/livestockwaterilrg, provided that in no event shall actual diversions exceed. the amount o£water provided by this Contract. Violation of this paragraph 15 shall be deemed to be a material breach of this Contract. 16. Well Permit If Applicant intends to divert. through a well, then Applicant must provide to District a copy of Applicant's valid well permit before District is obligated to deliver any water hereunder. 9 page 6 of 8 PDC SWSP Exhibit 5 17. Measuring Device or Meter: App cant agrees to provide, at its own expense, a measuring device deemed acceptable by the District's Engineer after consultation, or a totalizing flow meter with remote readout to continuously and accurately measure at all times all water diverted pursuant to the terms ofApplicant's water right and the terms of this Contract. Applicant agrees to provide accurate readings from such device or meter to District upon District's request. Applicant acknowledges that failure to comply with this paragraph could result in legal action toter inate Applicants diversion ofwater bythe State ofColoradoDivision. of Water Resources. Bysigning this Contract, Applicant hereby specifically allows District, through its authorized agent, to enter upon Applicant's property during ordinary business hours for the purposes of determining Applicant's actual use of water. p21c4 18. Representations: By executing this Contract,`t agrees that it is not relying on any legal or engineering advice that Applicantmaybelieve has been received from the District. Applicant further acknowledges that it has obtained all necessary legal and engineering advice from Applicant's own sources other than the District. Applicant further acknowledges that the District makes no guarantees, warranties, or assurances whatsoever about the quantity or quality of water available pursuant to this Contract. Should the District be unable to provide the water contracted for herein, no damages may be assessed against the District, nor may Applicant obtain a refund finm the District. 19. Costs of Water Court Filing and Augmentation Plan: Should the District, in its own discretion, choose to .include Applicant's Contract herein in a water court filing for alternate point of diversion or plan of augmentation, then Applicant hereby agrees to pay to the District when. assessed, an additional fee representing the District's actual and reasonable costs and fees for Applicant's share of the proceedings. Applicant shall be assessed a pro rata share ofthe total cost incurred by the District in preparing, tiling and pursuing to decree the water court case. The pro -rata share shall be calculated by dividing such total cost by the number of contractees included in the fling. To the extent that the District is caused additional costs because of objection filed specifically due to the inclusion of Applicant's Contract in the fling, such additional costs may be charged specifically to Applicant and not shared on a pro -rata basis by all contractees. 20. Binding Agreement: This agreement shall not be complete nor binding upon the District unless attached hereto is the form entitled "Application to Lease Water From West Divide Water Conservancy District' folly completed by Applicant and approved by the District's engineer. Said attachments shall by this reference thereto be incorporated into the terms of this agreement. All correspondence from the District to Applicant referring to or relating to this agreement is by this reference incorporated into this agreement as further terms and conditions of this agreement. 21. Warning: IT IS THE SOLE RESPONSIBILITY OF TUB APPLICANT TO OBTAIN A VALID WELL PERMIT OR OTHER WATER RIGHT IN ORDER TO DIVERT WATER, INCLUDING THE WATER ACQUIRED UNDER THIS CONTRACT. IT IS THE CONTINUING DUTY OF THE APPLICANT TO MAINTAIN TIC 'VALIDITY OF THE WELL PERMIT OR WATER RIGHT J NCLUDING FILING FOR EXTENSIONS OF PEANUT'S, FILING WELL COMPLETION REPORTS, PILING STATEMENTS OF BENEFICIAL USE, OR OTHERWISE LAWFULLY APPLYING THE WATER TO BENEFICIAL USE ON A REGULAR BASIS WITHOUT WASTE, 22. AREA B. CONTRACTS: IF APPLICANT'S WELL OR OTHER WA'JERRIGHT THAT IS THE SUBJECT OF THIS CONTRACT IS LOCATED OUTSIDE "AREA A" AS DESIGNATED BY THE DISTRICT, THEN THIS PARAGRAPH APPLIES: THE AUGMENTATION WATER PROVIDED BY THE DISTRICT-UNDER THIS CONTRACTMAY ONLY PROTECT APPLICANT'S WATER RIGHT FROM A CALL ON TDB COLORADO RIVER AND MAY NOT PROTECT APPLICANTFROM A CALL FROM ANY. OTHER. SENIOR RIGHT. NO REPRESENTATION OTI:IERWISE IS MADE BY MB DISTRICT. IF THIS IS A CONCERN TO 5 page 7 of 8 APPLICANT, THIS CONTRACT MAY BE RESCINdlifileiSMPIWNOTICE DELIVERED TO THE DISTRICT BY THE APPLICANT WM-I N MENEXT30 DAYS FOLLOWING THE AFFJXING OF SIGNATURES ON THIS CONTRACT IN WH CHEVENT ALL SUMS P AM BY APPPfLICANTFOR MS CONTRACT SHALL BE IMIv1LDIA`TELY REFUNDED TO APPLICANT, f p v ✓GU �G/ sr/ % y la�77p+YJ Applicant STATE OF ) ss. COUNTY OF V1SICL ) The foregoing instrument was acknowledged before me on this `� / ! J day of lr? 1('f , 20_L by ric-rd Orr) Witness my hand and official seal. My commis ion e, pires: COUNTY OF ) ss. ) The foregoing instrument was acknowledged be Witness on this day of , 20 and official seal. My commission expires: N 1aiy. Lniblic ORDER Alier a hearing by the Board of Directors ofthe West Divide Water Conservancy District on the Application, it is hereby ORDERED that said Application be granted and this Contract shall be and is accepted by the District. ATTEST: WEST DIVIDE WATER CONSERVANCY DISTRICT By President Date This Contract includes and is subject to the teens and conditions of the following documents which must accompanythis Contract: 1. Map showing locationofpoint of diversion. (use reap providea�a 2. Application and Data Form fully completed and signed 6 page 8 of 8 EXHIBIT B NOTICE OF CERTIFICATE OF SERVICE Certificate of Service I hereby certify that I have this 8th day of April, 2013, sent a true and correct copy of the foregoing document to the following parties by first -class mail. Christopher L. Geiger Scott M. Balcomb Balcomb & Green, P.C. P. O. Drawer 790 Glenwood Springs, CO 81602 William H. Caile Christopher L. Thorne Holland & Hart LLP - Denver 555 Seventeenth Street, Suite 3200 Denver, CO 80202 -3979 Mark Jeffrey Wagner Hill & Robbins P.C. 1441 18th Street, Suite 100 Denver, CO 80202 John (Robert) Pierce Nathan A. Keever Dufford Waldeck Milburn & Krohn, LLP 744 Horizon Court, Suite 300 Grand Junction, CO 81506 Kristin Howse Moseley Glenn E. Porzak Karen L. Henderson Porzak, Browning & Bushong LLP 929 Pearl Street, Suite 300 Boulder, CO 80302 Zancanella & Associates, Inc. Joanne Herlihy Jack F. Ross Dufford & Brown, P.C. 1700 Broadway, Suite 2100 Denver, CO 80290 -25101 Jacques S. Ruda Girsh & Rottman, P.C. 6000 E. Evans, Suite 1 -211 Denver, CO 80222 Kirsten Marie Kurath Mark A. Hermundstad Williams, Turner & Holmes, P.C. P. O. Box 338 200 North 6th Street Grand Junction, CO 81502 Megan Sullivan, P.E. Team Leader: 4, 5, 6 Division of Water Resources 1313 Sherman Street, Room 818 Denver, CO 80203 Douglas M. Sinor Trout, Raley, Montano, Witwer & Freeman PC 1120 Lincoln Street, Suite 1600 Denver, CO 80203 Z:\26000\26407 Petroleum Development Corp\2013 \SWSP \Cert of Service -30 day notice.doc Page 1 of 1