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HomeMy WebLinkAbout1.0 ApplicationPIPELINE DEVELOPMENT PLAN APPLICATION FRESH AND PRODUCED WATER PIPELINE SYSTEM M MARATHON Marathon 011 Compuiy SUBMITTED TO: Garfield County SUBMITTED BY: Marathon Oil Company September 30, 2008 Rockies Gas Team 743 Horizon Ct., Ste 220 Grand Junction, CO 81506 Telephone 970/245-5233 Fax 970/245-6287 GARFIELD COUNTY Building & Planning Department 108 8th Street, Suite 401 RECEIVED OCT 0 6 2008 Glenwood Springs, Colorado 81601 GAR tail IELD COUNTY Telephone: 970.945.8212 Facsimile: 970.38430}C & PLANNING www.garfield-county.com PIPELINE DEVELOPMENT PLAN Doc. # PDF 17 -cc GENERAL INFORMATION (Please print legibly) ➢ New !s Amended ❑ > Name of Pipeline Owner: Marathon oil Company > Mailing Address: 743 Horizon Ct, Ste. 220 Telephone: ( 970-)45-5233 x 2230 ➢ City: Grand Junction State: C° Zip Code: 81506 Cell: ( 970)640-4851 > E-mail address: cryland@marathonoil . com FAX: ( 970)245-6287 Name of Owner's Representative, if any, (Attorney, Planner, Consultant, etc): > Mailing Address: Telephone: ( ) ➢ City: State: Zip Code: Cell: ( ) > E-mail address: FAX: ( ) Description of Project: These pipelines will be used to deliver water to drilling and completion operations and to collect produced water from producing wells. ➢ General Location of Pipeline (Right -of -Way): ROW is located between 7 and 11 miles N and NW of the Town of Parachute ➢ Diameter and Distance of Pipeline: 13.72 miles of 8" steel line and 4" Flexpipe line > General Legal Description: Various sections in T6S, R97W; T 5S, R96W; and T6S, R96W; north and northwest of Parachute > Existing Use: Gas development, limited grazing ➢ Pipeline Row Distance (in acres) app. 166 acres ➢ Zone District: R/L - Plateau Last Revised 8/26/08 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I. APPLICATION SUBMITTAL REQUIREMENTS As a minimum, specifically respond to all the following items below and attach any additional information to be submitted with this application: Development Plan Submission: The applicant shall submit eight copies of the proposed development plan with the completed application form to the Planning Director. The following information must be submitted with a development plan application: 1) A vicinity map indicating the section, township and range of the site, and its relation to surrounding public roads and municipal boundaries. The proposed project site includes portions of Sections 19, 20, 29, 32, and 33 of Township 5 South, Range 96 West; portions of Section 18 of Township 6 South, Range 96 West; and portions of Sections 1, 12, 13, 21, 22, 23, 24, and 28 of Township 6 South, Range 97 West; Garfield County (Attachment 1). The pipelines will be constructed in an area between 7 and 11 miles north and northwest of the Town of Parachute. Construction access will be via Garfield County Road 215 and a series of private roads leading to the west. An overview map of the proposed pipelines is included in Attachment 1, and detailed maps of the northern and southern sections of the pipeline system are provided in Attachments 2 and 3, respectively. The proposed project will involve approximately 166 acres of resource land located on property jointly owned by Marathon Oil Company and Berry Petroleum Company; and property owned by Chevron USA Inc.; OXY USA INC.; and Puckett Land Company. Surface use or right-of-way agreements have been secured with these landowners, where necessary. 2) Project Overview: a description of the project including the length of the pipeline, diameter of the pipeline, pipeline commodity, and the general description of the pipeline route. Marathon Oil Company (MOC) is proposing the construction of two water pipelines for transporting water to and from well locations northwest of the Town of Parachute. These lines will be part of a consolidated system that MOC will use to efficiently and safely transport water around their field. As part of the pipeline system covered by this application, a manifold and two pumps will be installed in the SESE, Section 32, Township 5S, Range 96W (Attachment 1). The details of these installations are discussed below. Other components of this system have been or will be permitted with Garfield County via the appropriate processes. The water lines will consist of approximately 13.72 miles of 8 -inch steel and 4 -inch composite Flex Pipe pipelines. As described in detail below, the larger line will be initially used to distribute fresh water to MOC well pads for drilling and completion operations. The smaller line will be used for the collection of produced fluids from the pad locations. If future operations require the use of these lines for transportation of natural gas or other fluids, an amendment to this application will be submitted to Garfield County. The pipeline right-of-way will be approximately 100 feet wide and the entire right-of-way will be reclaimed upon completion. The water pipeline system being proposed will consist of two primary components: 1. Mesa Distribution System and 2. Produced Water Flex -Pipe System. Each of these components is described below. Mesa Distribution System. The function of the MOC Mesa Distribution system is to deliver freshwater (non -potable) to drilling and completions operations throughout the field. Additionally, this system will be able to transport flowback (or frac) water to various locations throughout the field. Operation of this system will be dictated by water need. The Mesa Distribution system is designed to be all ANSI 600#, which has a pressure rating to 1,440 psig. The system consists of an 8" steel trunkline that will be built and tested according to 49 CFR 195. System hydraulics allow for a maximum rate of 50,000 BPD through the 8" steel line with a discharge pressure of 1,440 psig, however anticipated rate through the 8" is 20,000 BPD with anticipated maximum operating pressures of 600 psig. Surge pressures are approximately 50% of maximum operating pressure (1,440 psig) during anticipated conditions and are less than the DOT maximum of 110% of maximum operating pressure even in the most aggressive flow rates and pressures. Produced Water Flexpipe System. The function of the 4" Flexpipe system is to move produced liquids to a centralized liquids handling point from throughout the field. The 4" Flexpipe system consists of a 4" Flexpipe trunkline (a high density polyethylene / fiberglass composite, 1,500 psig pressure rating) that will be built according to manufacturer's specifications tested according to 49 CFR 195. Estimated flow rates of the system are production dependent; however they are expected to be a worst case of 5,500 BPD. The system trunkline will be able to support 11,500 BPD from its furthest point at an operating pressure of 1,440 psig. Anticipated operating pressure at 5,500 BPD from the furthest point is 600 psig. Worst case surge pressures will be Tess than 650 psig. Appurtenant Facilities. As indicated above, several facilities that are appurtenant to the operation of the proposed pipeline system will also be constructed. These facilities will be located in the SESE, Section 32, Township 5S, Range 96W, on property jointly owned by MOC and Berry Petroleum Company and will be constructed on land previously disturbed for the construction of MOC's laydown yard and warehouse facility permitted by Garfield County. These facilities are required for the operation of the water pipeline system and will consist of approximately 900 feet each of lateral 8" and 4" pipelines to connect to the main trunk lines described above, two natural-gas driven FMC Q18 Quintuplex pumps, and a manifold to enable controlling the direction of flow on each pipeline system and to provide connections for water trucks and portable storage tanks. When MOC's produced and fresh water storage facility has been designed and permitted, these pipelines will be connected to that facility via this manifold. Details of the manifold foundation and the proposed pumps and associated engines are provided in Attachment 4. In addition, pole -barn type buildings (approximately 675 sq ft and 1,200 sq ft) will be constructed over the manifold and pumps and will be subject to building permits submitted to Garfield County. 3) Ownership: A. For individual right-of-way, a diagram showing adjacent properties and the approximate location of buildings and their uses within a distance of 350 feet of any proposed structure, facility, or area to be disturbed. This may be drawn at a smaller scale than the site plan. B. For an area plan, the map will show the property boundaries and ownership information for all private and public property included in the development area. Attachments 1-3 provide maps of the proposed pipeline system and its relationship to property boundaries and ownership. As indicated on Attachment 2, there is a seasonal hunting cabin owned by Chevron that is located approximately 260 feet from the pipeline in the SW 1/4 of Section 13, Township 6S, Range 97W. There are no other structures located within 350 feet of the pipeline right-of-way. 4) Evidence of surface owner notification and of surface agreements where the surface owner is not a party to the mineral lease. Surface use and/or right-of-way agreements with owners of surface where these pipelines will be constructed (Chevron, OXY and Puckett) are included in Attachment 5. Attachment 5 also includes a recent deed that conveys 50% interest in lands shown as owned by Berry Petroleum Company and MOC on the maps in Attachments 1-3 to MOC. A letter from Berry authorizing MOC to submit this application for the jointly -owned lands is also included in Attachment 5. Per the requirements of II.(2) below, surface owners within 200 feet of the pipeline ROW that are not affected surface owners with agreements with MOC have been identified and notified of the proposed action. There are only two such surface owners affected by this application and result for the portion of the pipeline along the west edge of Sections 1 and 12, Township 6S, Range 97W. The two surface owners are — Thomas F. & Ginger I. Latham (Parcel 216901200001) P.O. Box 66 De Beque, CO 81630-0036 Savage Limited Partnership 1 (Parcel 216902200019) Attn: John Savage 5953 County Road 320 Rifle, CO 81650 5) Need for Proposed Action: a statement of the reason for the pipeline. This pipeline system will significantly reduce truck traffic on Garfield County Road 215 and the Garden Gulch road, which is MOC's main access to the mesa. At MOC's predicted peak volume of 20,000 BPD, this system will save approximately 150 round trips (600 man hours) on the road each day. Over the first phase of field development this system has the potential to save over 243,000 round trips by water haulers (over 973,000 man hours) to the top of the mesa. This system of pipelines will transport this water more safely than the current use of trucks. 6) Regulatory Permit Requirements: a table indicating the permit, agency name, permit/action driving task and the task to be performed to obtain the permit. Permit Agency Driving Task Task Land Development APEN CDPHE Land Disturbance Emissions Expected Submission 10/2008 Construction Stormwater Permit CDPHE Stormwater Management Certified June, 2007 Permit # COR -03C052 Grading Permit Garfield County Grading & Reclamation Expected Submission 10/2008 Building Permits Garfield County County Building Code Expected Submission 10/2008 Department of the Army Permits US Army Corp of Engineers Drainage Crossings Notification for crossings will be filed with COE in 10/2008, as necessary Minimal Discharge Industrial Wastewater Permit CDPHE Discharge of Hydrostatic Test Water Expected Submission 10/2008 Please refer to Attachment 9 for a copy of the construction stormwater permit 7) Primary Project Participants: Include the names, addresses and phone numbers of the company representative, company and individual acting as an agent for the company, construction company contacts, federal and state agency contacts. Representative: Company: Address: Phone Number: Curtis Ryland Marathon Oil Company 743 Horizon Ct., Suite 220 Grand Junction, CO 81506 970-245-5233, ext. 2230 The construction company(ies) for this project have not yet been selected. If required, MOC will provide the names and contact information for the selected company(ies) to Garfield County. This pipeline is not regulated by the state or federal government. 8) Project Facilities: Identify any permanent project facilities such as permanent right-of- way, widths, meter stations, valve sets, etc. Also indicate any temporary right-of-way, width during construction, construction facilities, etc. The pipeline right-of-way will be a temporary feature, reclaimed upon the completion of construction. During construction, the total right-of-way for both pipelines will measure approximately 100 feet wide and will be used as the staging area for all necessary equipment and supplies. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Approximately fifty-two valve sets will be installed along the length of both the water distribution and the produced fluids pipeline. All of these valves will tie to laterals at pad locations. Each well / lateral tie-in will utilize a two -valve manifold for connection to each pipeline, consisting of 4" pipe and associated fittings and valves. As discussed in detail in Item 2 above, the pipeline system will also consist of a manifold, two natural-gas driven pumps, and associated buildings for each. All equipment used in the construction and operation of the MOC Water Distribution and Produced Liquids Handling pipelines will comply with COGCC noise abatement regulations, Colorado Air Quality Control Program regulations and applicable control provisions and CDPHE water quality control standards. An analysis of the noise produced by the pumps to be installed as part of this system is included in Attachment 6, and this analysis documents that the noise generated by the pumps will not exceed the applicable state standards. All above -ground facilities will be painted in a uniform, non -contrasting, non - reflective color, to blend with the adjacent landscape. 9) Construction Schedule: indicate the estimated start and end dates for construction, days of the week in which construction will occur, hours of day during which construction will occur. Construction is scheduled to begin immediately upon approval of this development plan and is estimated to begin in October 2008 and continue through the end of the construction season of 2008. Construction will then be completed in 2009. Construction will take place seven days a week between the hours of 6:00 a.m. and 7:00 p.m. 10) Sensitive Area Survey: List the types and areas of concern along the pipeline right-of- way, such as: sensitive plant populations, cultural, archeological, paleontological resources and wetlands identified during pre -construction environmental surveys, if applicable. Attachment 7 includes a Wildlife Impact and Sensitive Areas Report for this project prepared by WestWater Engineering. This report identifies wildlife, plant and wetlands issues that may result from this project and recommends mitigation measures to address those issues. MOC will adhere to the timing limitations, reclamation practices, and other measures prescribed in that report to the extent that those recommendations do not conflict with the requirements of agreements with surface owners. Cordilleran Compliance Services, Inc. conducted a preliminary survey to determine locations of possible drainage crossings necessary for completion of the proposed pipeline right-of-way. The field survey identified a total of fourteen possible drainage crossings in Bear Run, Little Creek, House Log Gulch, Circle Dot Gulch, Garden Gulch and un -named tributaries within the proposed right-of- way. Subsequently, each of these crossings were surveyed by WestWater Engineering to determine whether any of these crossings require notification to the Army Corps of Engineers (COE) under Nationwide Permit No. 12 (NWP 12) and the results are included in the report in Attachment 7. Where required, the appropriate notifications will be submitted to the COE. Per recent guidance received from the COE, notification of projects that are subject to COE Nationwide Permits is no longer required unless perennial streams or wetlands will be crossed; however, all crossings will be constructed and reclaimed in accordance with the requirements of COE Nationwide Permit No. 12. Attachment 8 contains a report from Grand River Institute documenting that no known cultural or archeological resources occur within the project area. 11) Use Rights/Permits/Authorizations (and stipulations): attach a copy of any documents granting land use rights, permits, authorizations (including stipulations). The process of obtaining use rights, other than private rights-of-way leases or other agreements, permits, and authorizations (including stipulations) from any federal, state or local agency may occur concurrently with review of this application. If concurrent review occurs, a condition of approval will be applied, in accordance with Section 9.07.07 below, requiring the submittal of documents showing the approved federal, state or local use rights, permits or authorizations (including stipulations) prior to the issuance of the Garfield County Administrative Permit. Private rights-of-way, leases, or other agreements granting surface use must be included with the application in accordance with Section 9.07.04(4) above. (Revised Resol #2008-89) All required regulatory permits are identified under Item 6. A copy of MOC's construction stormwater permit for its field, including this project, is provided in Attachment 9. Right-of-way and surface use agreements with the affected surface owners are included in Attachment 5. 12) Revegetation Plan: a. A plant material list. Be specific, scientific and common names are required. Include application rate in terms of pure live seed (PLS) per acre. b. A planting schedule that includes timing, methods and mulching. c. A revegetation security. A security may be required if, in the determination of the County Vegetation Management, the proposed project has: (i) A potential to facilitate the spread of noxious weeds. (ii) A potential to impact watershed areas. (iii) A potential for visual impacts from public viewing corridors. (iv) Steep slopes (15% or greater) or unstable areas (v) Disturbs large area (half an acre of greater) d. The revegetation security will be in an amount to be determined by the County Vegetation Management that will be site-specific and based on the amount of disturbance. The security shall be held by Garfield County until vegetation has been successfully re-established, or for a period of time approved by the County Vegetation Management in any specific land use action, according to the Reclamation & Revegetation Standards Section in the Garfield County Weed Management Plan. The County Vegetation Management will evaluate the reclamation and revegetation prior to the release of the security. The proposed pipeline right-of-way traverses shrubland. To revegetate the pipeline right-of-way in the best manner possible, the following seed mix will be used. Mixture/Variety Pure % Mountain Brome, Bromar 17.35 Russian Wild Rye, Boziosky 17.12 Orchardgrass, Paiute 16.84 Intermediate Wheatgrass, Oahe 16.45 Regreen 404 14.70 Crested Wheatgrass, Hycrest 7.25 Pubescent Wheatgrass, Luna 7.14 Planting will take place immediately following construction completion to get seed in the ground before spring. To maximize the potential for successful revegetation of the site, seeding will take place in the fall or prior to May 15, if spring planting must occur. If necessary, a second seeding will take place in the fall of each year following construction. The proposed right-of-way is relatively flat and mulching is most likely unnecessary. If, during revegetation efforts, it is determined that mulching is necessary, mulch will be applied by broadcast or as hydromulch. 13) A weed management plan for all Garfield County listed noxious weeds and State of Colorado listed noxious weeds that are targeted by the Commissioner of Agriculture for statewide eradication. A survey for noxious and/or problematic weeds was conducted in July, 2007. An Integrated Vegetation and Noxious Weed Management Plan is included as Attachment 10. Weed control will be implemented as necessary and will follow state and county recommendations. Weed management will be conducted by a third -party contractor, Palter & Girard, Inc., under the supervision of MOC. This plan will be updated to reflect any changes in the proposed right-of-way and to assess current conditions. 14) Emergency Response Plan: include a fire protection and hazardous materials spills plan, which specifies planned actions for possible emergency events, a listing of persons to be notified of an emergency event, proposed signage, and provisions for access by emergency response teams. The emergency plan must be acceptable to the appropriate fire district or the County Sheriff, as appropriate. The plan shall include a provision for the operator to reimburse the appropriate emergency service provider for costs incurred in connection with emergency response for the operator's activities at the site. An Emergency Response Plan has been prepared for MOC's Piceance Gas Field. This plan includes: a fire protection and hazardous materials spills plan, which specifies planned actions for possible emergency events; a listing of persons to be notified of an emergency event; proposed signage; and provisions for access by emergency response teams. The Emergency Response Plan is enclosed as Attachment 11. 15) Traffic Impact: for construction traffic on county roads, indicate the anticipated types of vehicles, number of each type, anticipated number of trips per day per each type, county roads to be used, percentage of the construction traffic that will travel on each listed county road. Construction of the pipeline is expected to require the following: Number and Type of Vehicle Number of Round -trips (per vehicle per day) Number of Days Total Traffic Impact 2 trucks hauling steel pipe 2 trips per truck per day 7 days 28 total round trips over the course of construction 6 trucks hauling reels of flexible pipe 1 trip per truck per day 2 days 12 total round trips over the course of construction 1 — 2 trucks hauling side booms 1 trip per vehicle per day 1 day to deliver 1 day to collect 2 — 4 total round trips, 1 or 2 at the beginning of construction and 1 or 2 at the end of construction 1 truck hauling a trenching machine 1 trip per vehicle per day 1 day to deliver 1 day to collect 2 total round trips, 1 at the beginning of construction and 1 at the end of construction 5 — 10 light-duty vehicles (welders, workers, etc) 1 trip per vehicle per day 42 days of construction 210 — 420 total round trips over the course of the entire construction project Traffic will travel to the construction locations via Garfield County Road 215 north of Parachute to the existing private Garden Gulch Road. Upon reaching the top of the Garden Gulch Road, traffic will travel to various construction locations via a network of existing private roads. All traffic will abide by State and County regulations and restrictions. 16) Staging Areas: indicate the general location of the staging areas required for pipeline construction. The temporary pipeline right-of-way will be used as the staging area for all construction activities. The entire right-of-way will be reseeded upon completion of pipeline construction. 17) Hydrotest Water: indicate the quantity of water required, source of water and the disposition of the water after testing. Hydrotesting the total 4" system will require -1650 bbls or 69,300 gallons, and the entire 8" system will require -5200 bbls or 218,400 gallons. Water will be purchased from a third party provider, through a commercial arrangement between MOC and Solvay Chemicals. The details of the arrangement between MOC and Solvay are outlined in the Special Use Permit (SUP) issued by Garfield County for MOC's Freshwater Pumping Facility. All water will be tested and 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 disposed of in compliance with the Minimal Discharge Industrial Wastewater Permit for this project. II. REFERRAL AND REVIEW BY PLANNING DIRECTOR: The Planning Director will coordinate the review of the development plan application. Upon the filing of a complete application for development plan review, the Planning Director shall promptly forward one copy to the County Road & Bridge, Oil & Gas Auditor, Vegetation Management and Engineering Departments; the appropriate fire district or County Sheriff; the surface owners of an individual pipeline development plan; and any adjacent municipality for comment. (1) Referral comments on the proposed development shall be returned to the Planning Director no later than 18 days from the date of application for an individual site application and 30 days from the date of application for an area development plan. (2) In addition, the applicant shall notify the property owners within 200 feet of the route that are not affected surface owners with an agreement with the applicant. A sign will be posted on the portions of the route crossing or adjacent to a public road within seven days after receiving the application for an individual development plan review. Both the notice and the sign shall indicate that a development plan review application has been made, and the phone number of the Planning Department where information regarding the application may be obtained. The applicant shall notify all property owners within 200 feet of the outside boundary of an area development plan and post a sign at the intersection of each public road entering the area within seven days after receiving the application for an area development plan review. Both the notice and the sign shall indicate that a development plan review application has been made, and the phone number of the Planning Department where information regarding the application may be obtained. (3) Any determination by the Planning Director to approve or conditionally approve a development plan application must be in writing and mailed or otherwise provided to the applicant no later than 28 days for an individual pipeline development plan or 60 days for an area pipeline development plan, after the date on which the development plan application is filed. Failure to make a determination on the application within this time period shall result in the application being considered approved and the applicant's building permit or access, or other permits being processed. III. DEVELOPMENT PLAN REVIEW STANDARDS AND CRITERIA FOR APPROVAL: A development plan shall be approved or conditionally approved in accordance with the following standards and criteria. (1) Right-of-way and any associated facilities shall be located along the perimeters of surface property ownerships and not within areas of agricultural crop production as a general guide. Non -perimeter locations will be acceptable if the surface owner agrees and there is no adverse impact on adjacent properties. (2) Any equipment used in construction or operation of a pipeline must comply with the Colorado Oil and Gas Conservation Commission Rules and Regulations, Section 802, Noise Abatement. a. For any pipeline construction or operational facility that will have a substantial impact in adjacent areas, additional noise mitigation may be required. One or more of the following additional noise mitigation measures may be required: (3) (i) Acoustically insulated housing or covers enclosing any motor or engine; (ii) Screening of the site or noise emitting equipment by fence or landscaping; (iii) A noise management plan specifying the hours of maximum noise and the type, frequency, and level of noise to be emitted; and (iv) Any other noise mitigation measures required by the COGCC. b. All power sources used in pipeline operations shall have electric motors or muffled internal combustion engines. Pipeline operations shall be located in a manner to minimize their visual impact and disturbance of the land surface. a. The location of right-of-way shall be away from prominent natural features and identified environmental resources. b. Right-of-way shall be located to avoid crossing hills and ridges, and, wherever possible, shall be located at the base of slopes. c. Facilities shall be painted in a uniform, non -contrasting, non - reflective color, to blend with the adjacent landscape. Right-of-way shall be located in existing disturbed areas unless safety or visual concerns or other adverse surface impacts clearly dictate otherwise. (4) Access points to public roads shall be reviewed by the County Road & Bridge Department and shall be built and maintained in accordance with the Garfield County Road Specifications. All access and oversize or overweight vehicle permits must be obtained from the County Road & Bridge Department prior to beginning operation. All proposed transportation right-of-way to the site shall also be reviewed and approved by the County Road & Bridge Department to minimize traffic hazards and adverse impacts on public roadways. Existing roads shall be used to minimize land disturbance unless traffic safety, visual or noise concerns, or other adverse surface impacts clearly dictate otherwise. Any new roads created as a result of the pipeline construction, intended to be permanent for maintenance and repair operations shall be placed behind a locked gate or other barriers preventing use by recreational vehicles. Any gates or barriers need to be consistent with the surface owner's preferences. (5) In no case shall an operator engage in activities which threaten an endangered species. (6) Air contaminant emissions shall be in compliance with the applicable permit and control provisions of the Colorado Air Quality Control Program, Title 25, Resolution 7, C.R.S. (7) All operations shall comply with all applicable State Public Health and Environment, Water Quality Control standards. (8) Any proposed waste disposal or treatment facilities shall comply with all requirements of the County Individual Sewage Disposal System Regulations. (9) The proposed reclamation plan shall provide for a reasonable reclamation schedule in light of the specific surface use and surrounding land uses, and may require recountouring and revegetation of the surface to pre -disturbance conditions. The Planning Director may also approve a plan for an alternative post -disturbance reclamation, provided the surface owner and the applicant agree, and the plan is in harmony with the surrounding land uses and the Comprehensive Plan. (10) Should an abandoned pipeline be removed, it will be subject to the original revegetation and weed management requirements in the original application. IV. CONDITIONS OF APPROVAL (1) If the Planning Director finds in reviewing a development plan application that the application meets the applicable standards set forth above, the Planning Director shall approve the site plan, and the applicant may continue the processing of the building or other associated County permit applications, or otherwise engage in the construction of the proposed pipeline. (2) If the Planning Director finds that the application does not meet an applicable standard or standards, the application shall be approved with appropriate reasonable conditions imposed to avoid or minimize the significant adverse impacts of the development. Such conditions may include, but are not necessarily limited to: the relocation or modification of proposed access roads, facilities, or structures; landscaping, buffering, or screening; posting of adequate financial guarantees; compliance with specified surface reclamation measures; or any other measures necessary to mitigate any significant impact on surrounding properties and public infrastructure. (3) One the Planning Director issues a determination on the development plan, the determination shall not be final, and no permit based upon the determination shall be issued, for 14 calendar days after the date of the determination, in order to allow time for the applicant to appeal, or for the Board of County Commissioners to call up the determination for further review, pursuant to Section 9.07.08 and 9.07.09 of the Pipeline Resolution. The Planning Director's determination shall become final, and permits applied for in accordance with the determination may be issued, only after the expiration of this 14 -day period, and only if the determination is not reviewed and acted upon by the Board of County Commissioners at a subsequent appeal or call-up hearing. I have read the statements above and have provided the required attached information which is correct and accurate to the best of my knowledge. (----.- io.-------,:':/" - ------'-- 09/30/08 (Signature of Owner of Right -of -Way) Date GARFIELD COUNTY BUILDING AND PLANNING DEPARTMENT AGREEMENT FOR PAYMENT FORM (Shall be submitted with application) GARFIELD COUNTY (hereinafter COUNTY) and Marathon oil Company (hereinafter APPLICANT) agree as follows: 1. APPLICANT has submitted to COUNTY an application for Pipeline Development Plan for Fresh and Produced Water Pipelines (hereinafter, THE PROJECT). 2. APPLICANT understands and agrees that Garfield County Resolution No. 98-09, as amended, establishes a fee schedule for each type of subdivision or land use review applications, and the guidelines for the administration of the fee structure. 3. APPLICANT and COUNTY agree that because of the size, nature or scope of the proposed project, it is not possible at this time to ascertain the full extent of the costs involved in processing the application. APPLICANT agrees to make payment of the Base Fee, established for the PROJECT, and to thereafter permit additional costs to be billed to APPLICANT. APPLICANT agrees to make additional payments upon notification by the COUNTY when they are necessary as costs are incurred. 4. The Base Fee shall be in addition to and exclusive of any cost for publication or cost of consulting service determined necessary by the Board of County Commissioners for the consideration of an application or additional COUNTY staff time or expense not covered by the Base Fee. If actual recorded costs exceed the initial Base Fee, APPLICANT shall pay additional billings to COUNTY to reimburse the COUNTY for the processing of the PROJECT mentioned above. APPLICANT acknowledges that all billing shall be paid prior to the final consideration by the COUNTY of any land use permit, zoning amendment, or subdivision plan. APPLICANT Signature Date: 09/30/08 Robert V. Coleman Print Name Mailing Address: 743 Horizon Ct., Suite 220 Grand Junction, CO 81506 10/2004 Page 4 -tib CHEVRON IDSA INC 1213529100008 5 S 96 W i B f7T2Y PETROLEUM D 1 / MARATHON OIL S-. 2135321000Q9 2' I I � i —-_ 95 — --1 HEVRO USA INC CHEVRON USA INC 216912000112 217118200008 i- 1 f Sg6W OXY USA INC. 216921400026 PUCKETT,(_AND COMPANY 19.1300001 V —777 0 Manifold & Pump Location Proposed Water Lines Affected Parcels Exsiting Private Roads County Roads Marathon Lease 0 0.5 1 1 inch equals 1 mile 2 3 Miles ATTACHMENT 1 - PIPELINE ROW MAP FRESH & PRODUCED WATER LINES MARATHON OIL CO GARFIELD COUNTY, COLORADO REVISION DATE. 09/23/08 REVISION NUMBER 01 DRAWN BY LS APPROVED BY DD PROJECT N EG07149 SCARF: AS SHOWN CORDILLERAN `. 14��t� �� p II CHEVRON USA INC ,213529100008 r I 4 I y I 5S97W f / BEF Y PETROLE1 M A D MARATHON CIL 213532100009 G7 __ OXY USA I C ?.192140 f 1,1 5 S 96 W CHEVRON USA INC 210533400010 L�_ I 1 BERRY PETROL UM AND MARATHO OIL __21690110 - __21690110 027 —6-S It ' HEVROf use, INC 216912000i12 i _i 6S96W� CHEVRON USA INC 217118200008 a Manifold & Pump Location Proposed Water Lines Affected Parcels Exsiting Private Roads County Roads Marathon Lease 0 0.5 1 1 inch equals 0.75 mile 2 Miles ATTACHMENT 2 - PIPELINE ROW MAP DETAIL OF NORTHERN SEGMENT OF ROW FRESH & PRODUCED WATER LINES MARATHON OIL CO GARFIELD COUNTY, COLORADO REVISION DATE. 09/23/08 REVISION NUMBER 01 DRAWN BY LS APPROVED BY DD PROJECT # EG07149 SCAI E: AS SHOWN CORDILLERAN 1 , I LI HEVROr' US* INC':( 216912120001211 8 I I E 1400 26'• 6 S 97 W • S4 i 0 Manifold & Pump Location Proposed Water Lines Affected Parcels Exsiting Private Roads County Roads Marathon Lease 0 0.5 1 PUCKETT/LAN.D CQMPANY 4'_1.011300001 96 W 1 inch equals 0.5 mile 1 t#1 2 Miles ATTACHMENT 3 - PIPELINE ROW MAP DETAIL OF SOUTHERN SEGMENT OF ROW FRESH & PRODUCED WATER LINES MARATHON OIL CO GARFIELD COUNTY, COLORADO REVISION DATE 09/23/08 REVISION NUMBER 01 DRAWN BY LS APPROVED BY DD PROJECT # EG07149 SCALE AS SHOWN altikugetai CORDILLERAN . •d d • 1. -0 - FINISH GRADE EDGE OF SKID PIPE CONN. ON SKID 1,-0. 3/i" 3Y" 2'-0` PLAN SCALE: 2"m1'-0' 7. 7. 9fi" 0 ADH ANC %. A ADH ANC W/ 5- EMBEDMENT 5 -It %1x4.4 0 7' EACH 510E • _ HI l FORMATIONAL SHALE PER SOILS REPORT OR UNDISTURBED SOIL EF -6- • • #5 O 12" OC. EW 1&8 COMPACTED NON -FROST SUSCEPTIBLE FILL (COON CLASS 5) SECTION SCALE: 1"-1.-0" NOTES GENERAL REQUIREMENTS 1.0 DESIGN CODES: 1.1 2003 INTERNATIONAL BUILDING CODE WITH APPLICABLE JURISDICTION ADAPTATIONS AND PROJECT SPECIFICATIONS. 2.0 FOUNDATION CRITERIA - REFER TO LAMBERT AND ASSOCIATES GEOTECHNICAL ENGINEERING STUDY REPORT FOR PROJECT /MO 7036GE DATED SEPTEMBER 11, 2007: 2.1 MINIMUM DEPTH (FROST) TO 80T. OF FDN: 42' 2.2 ALLOWABLE BEARING PRESSURE: 3750 PSF 3.0 COORDINATION: 3.1 THE CONTRACTOR SHALL REFER TO AND CONFORM WITH ALL APPUCABLE CONSTRUCTION, VENDOR AND FABRICATION DRAWINGS FOR LOCATIONS AND DETAILS OF ALL ANCHOR BOLTS, OPENINGS, INSERTS, ETC. THAT ARE TO BE INCORPORATED INTO THE WORK. THE CONTRACTOR IS RESPONSIBLE FOR COORDINATION BETWEEN CRAFTS. 3.2 THE CONTRACTOR SHALL COORDINATE WITH THE OWNER'S REPRESENTATIVE TO MINIMIZE PLANT OPERATIONAL DISRUPTION DURING CONSTRUCTION. 4.0 CONSTRUCTION METHODS 44 PROJECT SAFETY: 4.1 THE CONTRACTOR SHAH CONFORM TO PROJECT SAFETY REGULATIONS INCLUDING ALL LOCAL, STATE AND FEDERAL GOVERNMENT REQUIREMENTS. 4.2 THE CONTRACTOR SHALL STRICTLY FOLLOW MANUFACTURER'S INSTRUCTIONS FOR PREPARATION AND INSTALLATION OF PURCHASED MATERIALS AND EQUIPMENT, INCLUDING THE USE OF ANY SPECIAL TOOLS REWIRED. 4.3 THE CONTRACTOR SHALL PROTECT ALL EXISTING ANO NEW UTILITIES, STRUCTURES AND EQUIPMENT FROM DAMAGE. CONCRETE AND GROUT 1.0 REFERENCES: 1.1 CONCRETE SHALL COMPLY WITH THE REQUIREMENTS OF ACI -318 2.0 CAST -IN -PUCE CONCRETE: 2.1 STRUCTURAL CONCRETE DESIGN MIX: 2.1.128 -DAY COMPRESSIVE STRENGTH (t'e): 4,000 PSI 2.1.2MAXIMUM WATER / CEMENT RA110 (W/C): 0.45 2.1.3SLUMP: 3' TO 5- 2.1.4NR ENTRAINMENT: 52 TO 7X 8Y VOLUME 2.1.5MAXIMUM AGGREGATE SIZE: 1 34- 2.2 MATERIALS: 2.2.10EMENT: ASTM C 150 TYPE [1 OR IQ 2.2.2FLYASH: ASTM C 618, TYPE F 2.2.3FINE AND COARSE AGGREGATE: ASTM C33 2.2.4WATER: SHALL CONFORM TO THE REQUIREMENTS OF ACI -318. 2.2.5ADMIXTURES: (REQUIRE ENGINEER APPROVAL) 2.2.5.1 NR EN RANMEIIT ASTIR C260 2.2.5.2 WATER REDUCING ADMIXTURE ASTM 0494 [TYPE A] 2,2.5.3 PLASTICIZING ADMIXTURE ASTM CI017 [TYPE 1] 2.3 SURFACES TO RECEIVE CONCRETE SHAM 8E FREE OF LOOSE MATERIAL 2.4 BEFORE PLACING CONCRETE. THE CONTRACTOR SHALL VERIFY THAT FORMWORK, REINFORCING STEEL, ANCHOR RODS, EMBEDDED STEEL PIPING, CONDUIT. DRAINS. BOXES, ETC.. ARE PROPERLY INSTALLED. 2.5 CONCRETE SHALL 8E PLACED PER ACI -304 3.0 CONCRETE REINFORCING: 3.1 REINFORCING STEEL SHALL CONFORM TO ASTM A615 OR A706 GRADE 60 OEFORME0 BARS. REBAR SHALL BE DETAILED IN ACCORDANCE WITH ACI -315 AND ACI -318. 3.2 REINFORCEMENT SHALL HAVE THE FOLLOWING MINIMUM CONCRETE COVER: 3.2.1 CONCRETE CAST AGAINST THE EARTH -- S' MINIMUM COVER 3.2.2CONCRETE EXPOSED TO EARTH OR WEATHER: 3.2.2.1 N0. 6 THRU NO. 18 GARS -- 2. MINIMUM COVER 3.2.2.2 N0. 5 BAR AND SMALLER -- 1-1/2- MINIMUM COVER 3.2.3CONCRETE SLABS ANO WALLS NOT EXPOSED TO EARTH OR WEATHER: 3.2.3.1 140. 11 BAR AND SMALLER -- 3/4' MINIMUM COVER 3.2.4ALL OTHER -CONCRETE -- 1-1/2" MINIMUM COVER 3.3 LAP SLICES NOT DEFINED ON THE DRAWING SHALL BE LAPPED IN ACCORDANCE WRH ACI -318, CHAPTER 12, SPLICES OF DEFORMED BARS IN TENSION, CLASS B. LAP SLICES SHALL N07 BE LESS THAN 38 BAR DIA. FOR #6 BARS ANO SMALLER NOR LESS THAN 47 DAR DIA. FOR 07 BARS AND LARGER. 3.4 HORIZONTAL REINFORCING BARS SHAM. BE CONTINUOUS AT CORNERS. LINO. ACORNER BAR5CCEPTABLE. OF EQUAL SIZE AND SPACING. SPLICED AS INDICATED, ARE 4.0 ACCESSORIES: 4.1 ANCHOR RODS SHALL CONFORM TO THE REQUIREMENTS OF ASTM F1554 (GR 36 UNO) OR ASTM A307. AS APPROVED BY THE ENGINEER. ANCHOR RODS SHALL BE FURNISHED WITH HEAVY HEX NUTS AND HARDENED WASHERS. LINO (REF DWG 5530002). ANCHOR RODS. NUTS. AND WASHERS SHALL BE GALVANIZED IN ACCORDANCE WITH ASTM A 153. 4.2 CONCRETE FASTENERS: 4.2.1 ADHESIVE ANCHORS SHALL BE HILT HVA ADHESIVE ANCHORS WITH HAS ROOS AS MANUFACTURED BY HILT1 NORTH AMERICA ANCHORS IN EXTERIOR LOCATIONS SHALL USE STAINLESS STEEL HAS RODS. ADHESIVE ANCHORS SHALL BE FURNISHED AS A COMPLETE ASSEMBLY WITH ROD, NUTS. WASHER AND CAPSULE. EMBEDMENT OF ADHESIVE ANCHORS SHALL BE IN ACCORDANCE WITH THE ORAWINGS_ 4.3 EMBEDDED STEEL SHALL. BE ASTM 036. EXPOSED EMBEDDED STEEL SHALL BE GALVANIZED PER ASTM A 123. WELDED CONCRETE ANCHOR STUDS SHALL COMPLY WITH AWS D1.1 AND 0511 A108. 4.4 WATERSTOPS SHALL BE SYNKO-FLDC PREFORMED PLASNC ADHESIVE WATERSTOP BY HENRY CO., OR APPROVED EQUAL 5.0 TESTING: 5.1 TEST EACH ONLY POUR WITH A MINIMUM OF 4 CYLINDERS. TAKE AT LEAST 4 CYLINDERS PER 100 CY POURED. FOR EACH SET OF CYLINDERS, PROVIDE ENGINEER AND OWNER'S REPRESENTATIVE WITH TEST REPORTS THAT INCLUDE DATE OF POUR. SLUMP, CONCRETE AND AMBIENT TEMPERATURE, PERCENTAGE OF ENTRAINED AIR, CONCRETE LOCATION. AND COMPRESSIVE STRENGTH BY TEST AT 7 AND 28 DAYS. Harris Group Inc. ENERGY 0 ISSUED FGR CoNsiNt 9904 7/24/00 1611 DRAWING LAUN1)011 DESCRIPTION N0, DESCRIPTION DATE BY REFERENCE DRAWINGS REVISIONS Marathon Oil Company MIO -CONTINENT REGION FACILITY DESCRIPTION. LATHAM PUMP STATION CONTRACTOR TOSNAC LAT -S-001 ICC PODWE LAT -S-001 LATHAM YARD PUMP STATION MANIFOLD FOUNDATION NOTED OWN 44.N DATE 7/04/00 CWT. DATE APP. MTC N2irl0.0 w 61149.02 rlani 'AGILITY sTSTEN Pa1icr AREA DRAVNG In LAT -S-001 OTT ION PLS/ 0 Innovative Technologies, Creative Solutions 2X 4.58 [116] 2X 1.26 [32] — 2X 35.75 —► [908] 2X 42 50 [1080] 2X 21.25 [540] 2X 4.52 [115] 2X 1.19 2X J 2X J 2.97 1.15 [75] [29] D ISCHARGE SUCTION [30] 1 50. X 8.0 OF CRANK grfl ! 5.00 2X L 2X [127] .90 2.78 [23] [71] 4X 0 .81 [21] 2X 25.75 {— [654] 2X 51.50 [1308] " "A" C EnergySyste s INC Fluid Control =,ate �� 26.88 [683] L. 38.62 [981] 22.81 11 .50 [579] [292] Fluid Cylinder [(lilyFV:RIrsmIelli libiMV_V‘:MPTI VUMIMMI:1:111 Discharge Reference Dimensions (in) Suction A 2" Class As Required 4" Class As Required 7.25 B 4.75 !leak llartet'S !Al(' Fluid Control Pump Products 1803 GEARS ROAD I Iousutn. TX 77067 ('hone: 1-800-772-8532 Phone: 281-260-21221 FaN: '_81-'_61)-2122 fmcpumps.com Cupnghi 2110.1.1f\I(' En'ru. Stern, lined in OSA Q0, -CAST ._ Customer Service & blanufaetttrine IMC Fluid Control Pump Products 2825 VA' Washington Avenue Stephenville. 1 X 76401 Phone: 254-968-2181 Far. 254-965-3278 Toll free: 1-80(1-772-85522 Notes 11/2 NPS CRADLE DRAIN 1. Consult FMC for specific exceptions to API -674 and N.ACE standards. Consuls FMC for any application where inlet pressures will exceed 10% of rated discharge pressure. 3 llorsepower based on 90n%o mechanical efficiency. Actual application horsepower requirements can be calculated using the equation: 1311P = (GPM X PSI( — 1543 4. Pump capacities shown are based 00 1009 volumetric efficiency Dimensions shown are for general sizing purposes and should not be used for construction. 6 FMC reserves the right to modify this information without prior notice. Engine Performance Data Cummins Inc Columbus, Indiana 47202-3005 http://www.cummins.com Industrial GTA8.3SLB FR92280 175 BHP (130 kW) @ 1800 RPM 511 Ib -ft (693 N -m) @ 1800 RPM Configuration D553012CX03 CPL Code 2095 Revision 1 -May -2008 Compression Ratio: Fuel System: Emission Certification: 8.5:1 Displacement: 505 Ina (8.3 L) Field Gas, Dry Processed Nat Gas Aspiration: Turbocharged and Aftercooled Emissions data capable of meeting 2008 NSPS Standards All data is based on the engine operating with fuel system, water pump, and 8 in H2O (1.99 kPa) inlet air restriction with 4 in (102 mm) inner diameter, and with 1 in Hg (3 kPa) exhaust restriction with 4 in (102 mm) inner diameter; not included are alternator, fan, optional equipment and driven components. Coolant flows and heat rejection data based on coolants as 50% ethylene glycol/50°f water. All data is subject to change without notice. Rating Type: Continuous/WMR 500 — — c 450 — o — v —_ — ,2 400 350 1 I I l I I l 1000 1200 1400 1600 1800 Engine Speed (RPM) 150 — .c 0 100- 0 _ 50 - 700 - 650 - 600 - 550 — 500 Torque (N -m) 1000 1200 1400 1600 1800 Engine Speed (RPM) Ea c 0 14000 12000 10000 3 8000 a — 140 — 120 —100 — 80 g _ d — 60 — 40 20 40 60 Load (%) 80 100 20 18 16 14 12 Fuel Consumption (MJ/kW-hr) Torque Output RPM Ib -ft N -m 1,000 377 511 1,100 386 523 1,200 395 536 1,300 423 574 1,400 450 610 1,500 471 639 1,600 492 667 1,700 501 679 1,800 510 691 RPM 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 Power Output hp 72 81 90 105 120 135 150 162 175 kW 54 60 67 78 89 101 112 121 130 Fuel Consum.tion . 1,800 RPM hp kW % Load BTU/hp-hr MJ/kW-hr 175 130 100 8,150 11.53 156 116 90 8,302 11.75 140 104 80 8,543 12.09 123 92 70 8,659 12.25 105 78 60 8,810 12.46 88 66 50 9,198 13.01 70 52 40 9,764 13.81 53 40 30 10,568 14.95 35 26 20 11,723 16.59 18 13 10 13,645 19.3 Data represents gross engine capabilities obtained and corrected in accordance with SAE J1995 and ISO 3046 conditions of 29.61 in Hg (100 kPa) barometric pressure [500 ft (152 m) altitude], 77 °F (25 °C) inlet air temperature and 0.30 in Hg (1 kPa) water vapor pressure using dry processed natural gas fuel with 930 BTU per standard cubic fool lower heating value. Deration may be required due to altitude, temperature and type of fuel. Consult Cummins Customer Engineering for operation above this altitude. STATUS FOR CURVES AND DATA: Limited -(measured data) CHIEF ENGINEER: TOLERANCE: Within +/- 5 % Alfred S Weber Cummins Confidential FR92280 (Continued) Page: 2 Intake Air System Maximum allowable air temperature rise over ambient at Intake Manifold (Naturally Aspirated Engines) or Turbo Compressor inlet (Turbo -charged Engines): (This parameter impacts emissions, LAT and/or altitude capability) Low Temperature Aftercooling System Coolant temperature from the Aftercooler outlet @ Maximum engine coolant out temperature at Limiting Ambient Temperature Maximum coolant temperature into the Aftercooler @ 25C (77F) ambient Maximum coolant temperature into Aftercooler @ Limiting Ambient conditions Maximum coolant temperature for engine protection controls Maximum coolant operating temperature at engine outlet (max. top tank temp): Exhaust System Maximum exhaust back pressure: Recommended exhaust piping size (inner diameter): Lubrication System Nominal operating oil pressure @ minimum low idle @ maximum rated speed Minimum engine oil pressure for engine protection devices @ minimum low idle Fuel System Minimum fuel inlet pressure: Maximum fuel inlet pressure: Performance Data Engine low idle speed: Maximum low idle speed: Minimum low idle speed: Engine high idle speed Governor break speed: Maximum torque available at closed throttle low idle speed: Engine Speed Output Power Torque Intake Manifold Pressure Turbo Comp. Outlet Pressure Turbo Comp. Outlet Temperature Inlet Air Flow Charge Air Flow Exhaust Gas Flow Exhaust Gas Temperature Heat Rejection to Coolant Heat Reject to Aftercooler Coolant Heat Rejection to Ambient Heat Rejection to Exhaust Fuel Consumption Air Fuel Ratio (dry) Ignition timing (BTDC) Total Hydrocarbons NonMethane Hydrocarbons NOx CO CO2 02 30 delta deg F 16.7 delta deg C 130 deg F 215 deg F 212 deg F 2 in -Hg 4 in 10 psi 50 psi 10 psi 7 psi 25 psi 900 RPM 1,800 RPM 800 RPM 1,800 RPM 50 lb -ft 54 deg C 102 deg C 100 deg C 7 kPa 102 mm 69 kPa 345 kPa 69 kPa 48 kPa 172 kPa 68 N -m 100% Load 75% Load 50% Load 1,800 RPM 175 hp 511 Ib -ft 130 kW 693 N -m 1,800 RPM 131 hp 382 Ib -ft 98 kW 518 N -m 1,800 RPM 88 hp 257 Ib -ft 66 kW 348 N -m 32 in -Hg 108 kPa 20 in -Hg 68 kPa 9 in -Hg 30 kPa 44 in -Hg 149 kPa 33 in -Hg 111 kPa 21 in -Hg 71 kPa 329 degF 165 deg C 283 degF 139 deg C 227 degF 108 deg C 443 ft3/min 209 Us 353 ft3/min 167 L/s 264 ft3/min 125 L/s 947 ft3/min 447 L/s 762 ft3/min 360 L/s 582 ft3/min 275 L/s 1,359 degF 737 deg C 1,331 degF 722 deg C 1,302 degF 706 deg C 4,700 BTU/min 83 kW 4,104 BTU/min 72 kW 3,641 BTU/min 64 kW 1,346 BTU/min 24 kW 864 BTU/min 15 kW 439 BTU/min 8 kW 2,359 BTU/min 41 kW 2,002 BTU/min 35 kW 1,612 BTU/min 28 kW 8,118 BTU/min 143 kW 6,436 BTU/min 113 kW 4,811 BTU/min 85 kW 8,150 BTU/hp-hr 12 MJ/kW-hr 8,600 BTU/hp-hr 12 MJ/kW-hr 9,198 BTU/hp-hr 13 MJ/kW-hi 24.2 vol/vol 24.3 vol/vol 24.2 vol/vol 22 deg 22 deg 22 deg 22 deg 22 deg 22 deg 2.51 g/hp-hr 2.92 g/hp-hr 3.59 g/hp-hr 1 g/hp-hr 1 g/hp-hr 1 g/hp-hr 2 g/hp-hr 2.68 g/kW-hr 2 g/hp-hr 2.68 g/kW-hr 2 g/hp-hr 2.68 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 491 g/hp-hr 658 g/kW-hr 515 g/hp-hr 691 g/kW-hr 509 g/hp-hr 683 g/kW-hr 7.6 % 7.8 % 7.9 % Cummins Confidential FR92280 (Continued) Page: 3 Cranking System (Cold Starting Capability) Unaided Cold Start: Minimum cranking speed Bare Engine cranking torque at minimum unaided cold start temperature: Cold starting aids available Maximum parasitic load at 10 deg F @ Noise Emissions Top Right Side Left Side Front Exhaust noise emissions Estimated Free Field Sound Pressure Level at 3.28ft (1m) and Full -Load Govemed Speed (Excludes Noise from Intake, Exhaust. Cooling System and Driven Components) Altitude ft (m) 120 (49) 250 RPM 480 Ib -ft Block Heater 93.1 dBa 93.8 dBa 92 dBa 92.8 dBa 100.1 dBa Aftercooler Heat Rejection - Heat Load on Aftercooler BTU/min (kW) 110 (43) Ambient Temp deg F (deg C) 100 (38) 90 (32) 80 (27) 651 N -m 70 (21) 0 (0) 950 (16.7) 880 (15.5) 799 (14.0) 728 (12.8) 647 (11.4) 566 (10.0) 1000 (305) 1,051 (18.5) 971 (17.1) 900 (15.8) 819 (14.4) 738 (13.0) 657 (11.6) 2000 (610) 1,153 (20.3) 1,072 (18.9) 991 (17.4) 910 (16.0) 829 (14.6) 748 (13.2) 3000 (914) 1,254 (22.1) 1,173 (20.6) 1,092 (19.2) 1,011 (17.8) 930 (16.4) 849 (14.9) 4000 (1219) 1,355 (23.8) 1,274 (22.4) 1,183 (20.8) 1,102 (19.4) 1,021 (18.0) 940 (16.5) 5000 (1524) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) 6000 (1829) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) 7000 (2134) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) 8000 (2438) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) 9000 (2743) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) 10000 (3048) 1,466 (25.8) 1,385 (24.4) 1,294 (22.8) 1,213 (21.3) 1,122 (19.7) 1,041 (18.3) End of Report Cummins Confidential 1 1 1 1 1 1 1 1 1 1 1 1 QLS 8? f S3/ PIPELINE EASEMENT AGREEMENT STATE OF COLORADO ) COUNTY OF GARFIELD ) THIS PIPELINE EASEMENT AGREEMENT, made this day of October, 2006, between Chevron Shale Oil Company, a division of Chevron U.S.A. Inc, a Pennsylvania corporation, with offices at 111 1 1 S. Wilcrest Dr., Houston, Texas 77099, hereinafter referred to as "GRANTOR" and Marathon Oil Company, an Ohio corporation, with offices at 5555 San Felipe Road, Houston, TX 77056, hereinafter referred to as "GRANTEE." WITNESSETH: WHEREAS, GRANTOR is the owner of certain real property in Garfield County, State of Colorado; and WHEREAS, GRANTOR desires to grant and GRANTEE desires to acquire certain rights in a portion of said real property; NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: L GRANT OF EASEMENT. GRANTOR hereby grants to GRANTEE, subject to the terms and conditions hereof, the following easement: A. A non-exclusive pipeline right-of-way in certain parcels situated in Sections 1, 12, and 13, T6S-R97W, and Sections 19, 20, 29, and 33, T5S, R96W, of the 6th P.M., Garfield County, Colorado and is more particularly described in Exhibit "A", which is attached to this Agreement. This right-of-way is one hundred feet (100') in width, the centerline of said right- of-way being situated directly over the proposed pipeline right-of-way as further detailed in Exhibit "A", for the sole purpose of surveying, laying, constructing, operating, inspecting, maintaining, repairing, replacing, and removing multiple pipelines (with above -ground valves, drips, meters, fittings, appliances, and related facilities), for the transportation of natural gas and associated liquids and gases, and water, hereinafter referred to as "the pipeline", over and through the land described in Exhibit "A" hereof, hereinafter referred to as the "Easement Area," in the County of Garfield, State of Colorado. The rights granted herein do not include the right to explore for or produce oil, gas or other minerals, and do not include agricultural, farming, ranching or hunting rights. This Grant of Easement is strictly limited to the acreage as described in Exhibit "A" and if GRANTEE disturbs any of Grantor's Lands which are not a part of this agreement, GRANTEE shall pay damages to Grantor for the disturbance and shall immediately restore said lands to their original condition. If any pipelines or related equipment are installed in, on, or under any acreage other than that specifically set forth on Exhibit "A," then upon Grantor's written request, Grantee shall immediately remove that portion of pipeline and/or equipment, re-route and/or relocate the pipeline and/or equipment, and shall restore the disturbed acreage (both the portion disturbed which is located outside of that specified on Exhibit "A," and that portion disturbed located within Exhibit "A") to the its original condition. B. GRANTEE shall have the right of ingress and egress in, on, over, across and through the Easement Area for any and all purposes necessary to the exercise by GRANTEE of the rights and right-of-ways granted herein. C. GRANTOR reserves the right for itself or its assignees to explore for, mine, and remove oil shale, oil and gas, ores and other minerals in, on or under the Easement Area. D. This Agreement is made subject to all existing easements, rights-of-way, licenses, leases and other agreements affecting the surface or subsurface of the Easement Area and GRANTOR further reserves the right to grant other easements to third parties to cross over or under this easement and right -of ways. GRANTEE is responsible for obtaining any necessary third party consents prior to conducting activities on the Easement Area pursuant to this Agreement. E. GRANTOR makes no warranties or representations concerning the title to the Easement Area. 2. COVENANT THAT OPERATION OF EASEMENT NOT INTERFERE WITH SERVIENT TENEMENT. A. GRANTEE agrees to maintain and operate the easement herein granted in such manner that the operation thereof will in no way hinder or prevent the use and enjoyment of GRANTOR's adjoining property, including use thereof for exploration, mining, oil shale development, oil and gas development, farming, ranching and land development. B. Except for above -ground valves, meters, drips, fittings, appliances, and related facilities as provided for herein, GRANTEE shall have no right to locate any permanent surface installation on any part of the Easement Area without the prior written approval of GRANTOR, which approval is separate from and in addition to any rights granted in this Pipeline Easement Agreement. C. GRANTEE agrees to remove top -soil from the Easement Area separately from other material removed by GRANTEE in connection with its activities on the Easement Area, and to replace such topsoil on completion of any such activity. GRANTEE further agrees to insure that the Easement Area shall be left free of any large stones, holes, or piles of dirt which would interfere with farming, ranching and/or other operations thereon. All stones, brush and debris uncovered on, removed from or deposited on GRANTOR's lands as the result of activities permitted hereunder shall be disposed of at GRANTOR's direction. Except as otherwise provided herein, all areas disturbed as the result of activities permitted hereunder, within three months of installing pipe into the Easement shall be reclaimed to original condition or as near thereto as practicable, which shall include reseeding with seed mixes approved by GRANTOR or GRANTOR's agricultural lessee(s). Grantee shall continue to reseed and cultivate until successfully reestablishing self sustaining vegetation. Reseeded areas shall be properly mulched except in pastures and hay fields. GRANTEE shall spray all areas affected by construction to control noxious weeds for a period of no less than three growing seasons following the installation of pipe. D. GRANTEE agrees to replace or rebuild, to the satisfaction of GRANTOR, any and all parts of any road or any drainage or irrigation system or other improvement that may be damaged in connection with GRANTEE's activities conducted pursuant to this Agreement. Upon completion of any pipeline construction, replacement, substitution, relocation, or removal activities permitted hereunder, GRANTEE shall grade all permanent roads on GRANTOR's lands which were used in connection with said activities. E. GRANTEE shall have the right to cross fences on the adjoining property of GRANTOR whenever such crossing shall be reasonably necessary in conducting activities permitted under this Agreement. GRANTEE shall maintain a proper enclosure at all times and shall restore such fences to a condition equal to or better than their condition prior to such crossing as promptly as possible provided, however, that GRANTEE shall not be responsible for a lack of proper enclosure or for restoration of fencing if caused by someone other than GRANTEE, its employees, agents, contractors, subcontractors, or invitees. F. GRANTOR reserves the right to fence the whole or any part of the boundaries of the right-of-way, and the right to build fences crossing such easement. G. GRANTEE shall bury its pipeline and subsurface facilities to provide a minimum of thirty-six (36) inches between the top of the pipeline and facilities and the ground level except in those areas where rock is encountered that would otherwise require blasting, in which case, the facilities shall be buried a minimum of eighteen (18) inches below the surface. H. Except as otherwise provided herein, GRANTEE shall properly backtill and compact disturbed ground, excavated pipeline trenches, and other excavations in connection with its activities on the Easement Area. Compaction of disturbed areas in hay fields and pastures shall be accomplished using hydro -compaction methods followed by replacement of topsoil, free of stones and other debris. Immediately upon completion of any activity performed under this Agreement, GRANTEE shall repair damage to open irrigation and drainage ditches by using proper mechanical ditch channel compaction methods and by reestablishing pre -disturbance grades and flowlines. All culverts and buried irrigation system pipelines damaged by the activities permitted hereunder shall be replaced by GRANTEE immediately upon completion of the activity. 1. GRANTEE shall have the ongoing responsibility of assuring that irrigation systems damaged by the activities permitted hereunder are restored to their proper operating condition and that areas of settling and slumping in GRANTOR's fields and pastures, caused by the activities permitted hereunder, are permanently restored to field grade. J. Except as otherwise provided herein, GRANTEE shall maintain current as -built drawings for the pipeline and all of its surface and subsurface facilities located within the Easement Area and shall provide GRANTOR with copies of such drawings each time they are updated. K. GRANTEE shall take all necessary precautions, in conducting its activities under this Agreement, to prevent brush and grass fires. L. GRANTEE shall determine if any activities require any permits or approvals from any agencies, organizations, groups, govemmental committees or other entities having jurisdiction over such activities and shall be solely responsible for obtaining such approvals or permits. M. GRANTEE shall participate in conducting a vegetative cover and sage grouse habitat study, approved by a Chevron Health, Environment & Safety representative, in Section 29, T5S, R96W 6` P.M. Said study shall be initiated, to the satisfaction of GRANTOR, before pipeline construction in said Section 29 proceeds. The study shall include a mutually agreeable time frame covering the period before, during and after pipeline construction activities in said section. A mitigation plan for said Section 29 shall be developed by GRANTOR, based on the results of said study and other information, and implemented at the sole cost of GRANTEE. N. A segment of the proposed pipeline corridor on GRANTOR surface, approximately between and including lines LI42 and L151, will parallel a steep two -track road and adjacent gulley heading north into the Bear Run drainage in the NW/4, Section 29, T5S, R96W 6'h P.M. The pipeline corridor and pipelines located therein shall not encroach on or be placed in said gulley. Following construction of pipelines in said segment, GRANTEE shall place and maintain obstacles across the two -track road so it can no longer be used. O. GRANTEE shall comply with all federal, state and local laws and regulations governing the discharge of construction and other material into drainages. GRANTEE shall be responsible for the adequacy of its pipeline designs and construction, including, but not limited to, design and construction of drainage crossings. P. GRANTEE shall control fugitive dust during construction of the pipeline on GRANTOR surface. Q. GRANTEE shall ensure all pipeline corridor cut and fill areas and other disturbed areas on GRANTOR surface are recontoured to generally conform with the surrounding terrain. R. Pipeline construction activities on GRANTOR surface shall be coordinated with GRANTOR's surface lessees to minimize conflicts for both GRANTEE and the lessees. 3. TERM OF AGREEMENT. Unless terminated or canceled prior thereto in the manner provided for herein, the term of this Agreement shall be a period of one (1) year from the effective date hereof, and shall continue so long as GRANTEE continues to use and maintain the pipeline and associated facilities in the Easement Area without interruption for more than one hundred eighty (180) consecutive days, at which time GRANTOR will have the option of terminating this Agreement as provided in Paragraph 9B. 4. PAYMENTS. GRANTEE shall pay to GRANTOR a payment in the amount of four thousand dollars ($4000) upon execution of this agreement. An annual payment, as hereinafter described, shall be made by GRANTEE to GRANTOR on or before each anniversary date of this Agreement, at the address first set forth below in this Section 4. The first of such annual payments shall be in the amount of four thousand two hundred dollars ($4200). Said annual payment shall thereafter increase by Five percent (5%) each year. No payment shall be deemed made by GRANTEE under this Agreement until the correct amount due is actually received by GRANTOR. All payments to GRANTOR hereunder shall be made by GRANTEE's check, mailed postage prepaid, to GRANTOR at Chevron Shale Oil Company, P.O. Box 840659, Dallas, TX 75284-0659, which shall continue as the depository for payments hereunder regardless of changes in ownership of the Easement Area, until such time as Grantee is notified, in writing, of a change of corporate name, identity and/or address of GRANTOR. Said payment shall reference this Agreement's QLS as found at the top of page one of this Agreement. 5. USE OF EASEMENT AREA. A. All activities permitted under this Agreement shall be performed and conducted in a careful, safe, and workmanlike manner, and in such manner as will not interfere with GRANTOR's and GRANTOR's lessees', licensees', and permitees' exploration, mining, oil shale, oil and gas, farming, ranching, land development and/or other operations on other lands in the vicinity of the Easement Area. Prior to exercising any rights granted hereunder, GRANTEE shall give notice of GRANTEE's planned construction activities to all persons holding any rights, licenses, permits, easements or leases to use the surface of the Easement Area and lands used for access thereto. B. All activities permitted pursuant to this Agreement shall be performed by or under the direction of GRANTEE, and GRANTEE shall not permit, unless otherwise authorized by GRANTOR, public easements, public facilities, or public roads over or under the Easement Area. C. GRANTEE shall keep the pipeline and associated facilities in a good and safe condition and, after doing any work which disturbs the surface of the Easement Area, GRANTEE shall restore the surface of the Easement Area to as good a condition as existed prior to such work. D. Notwithstanding that GRANTEE may have obtained GRANTOR's approval under this Agreement to make various uses of the Easement Area, GRANTEE's operations shall be subordinate to GRANTOR's right to conduct shale oil operations on the Easement Area at any time in the future. If GRANTOR determines in its reasonable discretion that GRANTEE's operations will interfere with GRANTOR's shale oil operations, GRANTEE agrees to change, cease or relocate its operations in order to eliminate the interference. Costs incurred prior to January 1, 2018 in connection with the relocation of GRANTEE's pipeline, valve terminals, gathering systems and other related facilities in order to eliminate interference shall be borne by GRANTOR. Effective January 1, 2018 and thereafter, GRANTEE agrees to change, cease or relocate its operations at its sole risk and cost, in order to eliminate any interference and GRANTOR shall have no obligation to compensate GRANTEE for lost production or for the costs and expenses of relocating or ceasing operations resulting from such elimination of interference. 4 6. INDEMNIFICATION. GRANTEE AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD GRANTOR AND ALL OF GRANTOR'S AFFILIATED AND PARENT AND SUBSIDIARY COMPANIES, JOINT VENTURERS AND PARTNERS, AND ALL OF THE AFORESAID ENTITIES' OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AGENTS, INVITEES AND INSURERS ("INDEMNITEES") HARMLESS, FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, DAMAGE, INJURY, COSTS (INCLUDING ATTORNEY FEES), EXPENSES, FINES, CLAIMS, DEMANDS AND CAUSES OF ACTION ARISING OUT OF, OR IN ANY WAY CONNECTED WITH GRANTEE'S ACTIVITIES OR OPERATIONS UNDER THIS AGREEMENT, FOR INJURY TO OR ILLNESS OR DEATH OF ANY PERSON (INCLUDING BUT NOT LIMITED TO AN INDEMNITEE OR AN EMPLOYEE OR AGENT OF GRANTEE OR GRANTEE'S CONTRACTORS OR SUBCONTRACTORS OR ANY THIRD PARTY) OR FOR LOSS OF OR DAMAGE TO PROPERTY (INCLUDING BUT NOT LIMITED TO PROPERTY OF INDEMNITEES, GRANTEE, GRANTEE'S CONTRACTORS OR SUBCONTRACTORS OR ANY THIRD PARTY) OR FOR VIOLATION OF ANY FEDERAL, STATE OR LOCAL LAWS, RULES, REGULATIONS, AND ORDERS INCLUDING BUT NOT LIMITED TO CERCLA AND RCRA. SUCH INDEMNITY SHALL APPLY EVEN IN THE EVENT OF AN INDEMNITEE'S OWN NEGLIGENCE, WHETHER SUCH NEGLIGENCE IS SOLE, COMPARATIVE, CONTRIBUTORY, CONCURRENT, ACTIVE, OR PASSIVE, AND REGARDLESS OF WHETHER LIABILITY WITHOUT FAULT IS IMPOSED OR SOUGHT TO BE IMPOSED ON ONE OR MORE OF THE INDEMNITEES. THIS INDEMNITY SHALL NOT APPLY TO THE EXTENT THAT IT IS VOID OR OTHERWISE UNENFORCEABLE UNDER APPLICABLE LAW. 7. GRANTEE INSURANCE REQUIREMENT. Without in any way limiting GRANTEE's liability under this Agreement, GRANTEE shall maintain, during the term of this Agreement, the following insurance with companies and on terms satisfactory to GRANTOR: A. Worker's Compensation and Employers' Liability Insurance as prescribed by applicable law. The limit of liability for Employers' Liability Insurance shall not be less than $1,000,000 per occurrence. B. Comprehensive or Commercial General Liability Insurance (Bodily Injury and Property Damage), including the following supplementary coverages: Contractual Liability to cover liability assumed by GRANTEE under this Agreement; Product and Completed Operations Liability Insurance; Broad Form Property Damage Liability Insurance; and coverage for Explosion, Collapse and Underground Hazards. The limit of liability for such insurance shall not be less than $1,000,000 per occurrence. C. Automobile Bodily Injury and Property Damage Liability Insurance. Such insurance shall extend to owned, non -owned and hired automobiles used in the performance of this Agreement. The limits of liability of such insurance shall not be less than $1,000,000 per person/ $1,000,000 per occurrence for bodily injury and $1,000,000 per occurrence for property damage. The insurance specified in this Section Seven shall contain a waiver of subrogation against GRANTOR, and shall name GRANTOR as an additional insured with respect to the activities performed pursuant to this Agreement. In addition, said insurance shall include a requirement that the insurer provide GRANTOR with 30 -days' written notice prior to the effective date of any cancellation or material change of the insurance. PRIOR TO HAVING ANY RIGHT TO ACCESS THE LANDS SUBJECT HERETO OR EXERCISING ANY OF THE RIGHTS GRANTED IN THIS AGREEMENT, GRANTEE MUST FURNISH GRANTOR WITH COPIES OF THE INSURANCE POLICIES OR CERTIFICATES OF SAID INSURANCE PROVIDING THE COVERAGES AND ENDORSEMENTS REQUIRED HEREIN. All insurance policies or certificates of insurance provided to GRANTOR shall be in a form acceptable to GRANTOR, shall reference this Agreement's QLS number as found at the top of page one of this Agreement and shall be provided to GRANTOR prior to GRANTEE exercising any of the rights granted herein. 8. TAXES, LIENS AND ENCUMBRANCES. GRANTEE agrees to pay promptly and before delinquency all taxes and assessments levied or assessed upon or against the Easement Area during the term hereof, by reason of, or resulting from GRANTEE's activities under this Agreement in relation to the pipeline and associated facilities, and to reimburse GRANTOR for any increase in taxes paid by GRANTOR resulting from the value of such pipeline and associated facilities, whether or not separately assessed. GRANTEE shall pay all taxes levied or assessed upon or against GRANTEE'S pipeline and associated facilities and operations on the Easement Area. 9. TERMINATION. A. In the event of any default by GRANTEE in its obligations hereunder, GRANTOR may deliver to GRANTEE written notice specifying the default. if the default remains uncorrected for a period of thirty (30) days after delivery of the notice, this Agreement may then be terminated in writing by GRANTOR subject to the provisions herein concerning site reclamation and facility removal and subject to liabilities accrued prior to termination. GRANTOR'S right to terminate this Agreement when GRANTEE has not corrected a default within thirty (30) days, shall be a continuing right of GRANTOR for the life of this Agreement. If this Agreement is terminated under this provision, said termination shall be effective the date the notice of same is placed in the mail addressed to GRANTEE. B. If, at any time after GRANTEE begins construction of the pipeline, GRANTEE fails to use the Easement Area or any linear part thereof for the purposes provided hereunder for more than one hundred eighty (180) consecutive days, GRANTOR may terminate this Agreement as to those parts of the Easement Area no longer used as above, by written notice to GRANTEE, subject to the provisions herein concerning site reclamation and facility removal and subject to liabilities accrued prior to termination. At such time as GRANTEE has reached the one hundred and eighty (180) day threshold, GRANTEE must deliver notice of the nonuse to GRANTOR within one (1) month of said threshold date. If GRANTEE fails to deliver said notice of nonuse to GRANTOR within the specified one (1) month time period, then this Agreement shall automatically terminate. C. Upon any termination of this Agreement as to all or any linear part of the Easement Area, and unless otherwise approved by GRANTOR, GRANTEE shall dig up and remove its pipeline and associated facilities. GRANTEE shall have a period of six (6) months from and after the effective date of termination in which to remove the pipeline and all of its associated facilities from the Easement Area or from the part thereof as to which the termination applies. Upon such removal, GRANTEE shall place the Easement Area in a neat, safe and orderly condition. D. Upon termination of the rights herein given, GRANTEE shall execute and deliver to GRANTOR, within thirty (30) days after written demand therefore, a good and sufficient quit claim deed to all interest of GRANTEE in the Easement Area so terminated. Should GRANTEE fail or refuse to deliver to GRANTOR such quit claim deed, or if GRANTOR after a good faith effort to locate GRANTEE is unable to locate GRANTEE, then a written notice by GRANTOR, duly recorded, reciting the failure or refusal of GRANTEE to execute and deliver said quit claim deed, or inability to locate GRANTEE, as herein provided, shall after ten (10) days from the date of recordation of said notice, be conclusive evidence against GRANTEE and all persons claiming under GRANTEE of the termination of this Agreement or a portion thereof and all interest of GRANTEE hereunder as to that portion, subject to GRANTEE's obligation to remove its property within six (6) months of such termination. E. Termination shall not operate to extinguish any obligations of GRANTEE which have accrued at the time of termination, or which accrue hereunder upon termination. 10. TRANSFER OF INTEREST. The rights granted to GRANTEE under this Agreement shall not be assigned or otherwise transferred without the prior written consent of 6 GRANTOR. Subject to the foregoing, all of the terms, covenants, and conditions of this Agreement shall be binding upon the successors and assigns of the parties. 11. WAIVER CLAUSE. The failure of either party to enforce, at any time, any of the provisions of this Agreement, or to exercise any option which is herein provided, or to require at any time, performance by the other party of any of the provisions hereof, shall in no way be construed to be a waiver of such provision, nor in any way affect the validity of this Agreement or any part thereof, or the right of a party to thereafter enforce each and every such provision. 12. APPLICABLE LAW. This Agreement and the exhibits hereto shall be govemed as to validity, enforcement, construction, effect, and in all other respects, by the law of the State of Colorado, and its courts shall have jurisdiction to enforce this Agreement. 13. ATTORNEYS' FEES. In the event of a default by either party in the performance of its duties, the court with the proper jurisdiction to resolve the dispute shall award reasonable attorney fees and costs to the successful party or in such other manner as the court deems appropriate. 14. NOTICES. Any notices required or permitted under this Agreement shall be given in writing. The notice shall be served either personally or by registered or certified mail with return receipt requested. Service shall be effective when received. All notices hereunder shall be directed to the addresses set forth below or such substitute address or addresses as provided to the parties at least thirty (30) days in advance of any notice. Present addresses to which notices shall be sent in accordance with the provisions of this section are: GRANTOR: Chevron Shale Oil Company Attn: Manager, Shale Oil Development 11111 S. Wilcrest Dr. Houston, TX 77099 GRANTEE: Marathon Oil Company Attn: Land Manager, Piceance Basin 5555 San Felipe Road Houston, TX 77056 15. CONFLICT OF INTEREST. No director, employee, or agent of either party will give to or receive from any director, employee, or agent of the other party any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. During the term of this Agreement and for 2 years, thereafter, any mutually agreeable representatives authorized by either party may audit the applicable records of the other party solely for the purpose of determining whether there has been compliance with this paragraph. The provisions of this paragraph will survive termination of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. Chevron U.S.A. Inc. Marathon Oil Company Alt By: _( . A 6 .. / By: Name: i r / Name. Its: Attorney -in -Fact Its: 7 APPROVED A6 T FORM STATE OF TEXAS } COUNTY OF HARRIS ) The foregoing it n1p enttwas acknowledged before me this ��41av o by C • T,�Y}S (j` Q as Attorney -in -Fact for Chevron U.S.A. Inc. My Commission Expires: )l7 e -p Notary Public STATE OF TEXAS ) ) COUNTY OF HARRIS ELAINE 1. GRABER Notary Public, State of Texas My Commission Expires September 30, 2008 ' t/littlt� The foregoing instrument was acknowledged before me this -3 day of October, 2006 by as /\-}-} rr c n r Ls . - Ft c .-\ of Marathon Oil Company. My Commission Expires: Notary Public 33.x G c e,, ^rn0 DEBORAH O. KUHLMAN Notary Public, State of Tera My Commission Expires January 17, 2010 ti : ACir.r -jt.-sr.lar, (MARMON) MMarathon Oil Corporation October 10, 2006 Chevron Shale Oil Company Chevron U.S.A. Inc. 11111 S. Wilcrest Drive Houston, TX 77099 Insurance Treasury 5555 San Felipe (P.O. Box 3128) Houston, TX 77056 (77253-3128) Main No. 713/629-6600 Fax 713/296-4514 RE: Evidence of Insurance for Marathon Oil Company filed in connection with Pipeline Easement Agreement, Garfield County, Colorado The insurance required by your company will be provided by Marathon Oil Company under the corporate insurance programs of its parents Marathon Oil Corporation (Marathon). Marathon is covered for property and liability exposures through major worldwide property and liability insurance programs with large self- insured retentions. Losses that fall within these self-insured retentions, including those for which Marathon is contractually liable, are paid through the financial resources of the company and are administered by Marathon under its self-administered claims program. The insurance limits required by your company fall within our corporate self-insured retentions. This means that Marathon will respond to bodily injury and/or property damage claims made against Marathon arising out of or relating to the above -referenced agreement as would a commercial insurer for the limits specified below: Commercial General Liability -- Bodily Injury and Property Damage: $1,000,000 Combined Single Limit per occurrence premises/operations explosion and collapse hazard underground hazard products/completed operations hazard contractual insurance broad form property damage independent contractors personal injury Auto Liability — Bodily Injury and Property Damage - $1,000,000 Combined Single Limit per occurrence owned hired non -owned Workers Compensation/Employers Liability - Per Statutory Requirement/ $1,000,000 per occurrence Chevron and its subsidiaries shall be considered as if it were an additional insured for liabilities arising out of the above -referenced agreement. Marathon waives its right of recovery to the extent Marathon has assumed liability or for which Marathon is otherwise legally liable and is not indemnified hereunder. This evidence of insurance/self-insurance will remain in effect until rescinded in writing by Marathon. Sincerely, GUYY\ 'nAkilLti),v,LO Pam Mihovil Insurance Specialist Chevron November 1, 2007 Marathon Oil Company Attn: Peggy Gilbert 5555 San Felipe Houston, TX 77056 Kevin Goldstein Mid -Continent Business Unit Landman Chevron U.S.A. Inc. Piceance Basin 11111 S. Wilcrest, Houston, TX 77099 P.O. Box 36366, Houston, TX 77236 Tel 281 561 3722 Fax 866 228 5093 kjgo@chevron.com Re: Amendment of Pipeline Easement Agreement dated October 23, 2006 Garfield County, Colorado Ms. Gilbert: This letter serves to amend some of the terms of that certain Pipeline Easement Agreement between Chevron Shale Oil Company, a division of Chevron U.S.A. Inc. (CSOC) and Marathon Oil Company (Marathon), dated October 23, 2006, a copy of which is attached hereto as "Exhibit A" (the Pipeline Easement). Terms of this agreement are as follows: 1. During the period of initial pipeline construction, CSOC agrees to grant Marathon an additional strip of land thirty feet (30') in width along and on the west side of the Pipeline Easement as shown in Exhibit "B" ("temporary workspace"), except where Grantee's activities will interfere with irrigation ditches, streams, or creeks. 2. This grant of a temporary workspace shall terminate at the earlier of the completion of the initial pipeline installation or six (6) months, whichever is earlier. 3. At the termination of the grant of a temporary workspace, Marathon shall permanently remediate same in accordance with Article 2.C. of Exhibit A. 4. With the exception of the addition of temporary workspace set forth above, all terms and provisions as set forth in the Pipeline Easement remain in full force and effect. 5. Conflicts of interest relating to this Agreement are strictly prohibited. Except as otherwise expressly provided herein, neither Marathon nor any director, employee or agent of Marathon or its Subcontractors or Vendors shall give to or receive from any director, employee or agent of CSOC any gift, entertainlnent or other favor of significant value, or any commission, fee or rebate. Likewise, neither Marathon nor any director, employee or agent of Marathon or its Subcontractors or Vendors shall, without prior written notification thereof to CSOC, enter into any business relationship with any director, employee, or agent of CSOC or any Affiliate, unless such person is acting for and on behalf of CSOC. Marathon shall promptly notify CSOC of any violation of this Section and any consideration received as a result of such 11 violation shall be paid over or credited to CSOC. Additionally, in the event of any violation of this Section, including any violation occurring prior to the date of this Agreement, resulting directly or indirectly in CSOC's consent to enter into this Agreement, CSOC may, at CSOC's sole option, terminate this Agreement at any time and notwithstanding any other provision of this Agreement, pay Marathon only for that part of the Work performed prior to the date of termination. Any representatives authorized by CSOC may audit any and all records of Marathon and its Subcontractors and Vendors for the sole purpose of determining whether there has been compliance with this Conflicts of Interest Section. Marathon and its subcontractors and vendors of any tier shall maintain true and correct records in connection with all matters relating to this Agreement and retain such records for at least 24 months after Itermination of this Agreement. Please indicate your agreement by signing in the space provided below and returning two (2) executed originals of this letter to the undersigned. This letter agreement shall not be effective until an original has been fully executed by both Marathon and CSOC. Sincerely, I Kevin Goldstein Land Representative tt AGREED TO AND ACCEPTED THIS i t DAY OF �vK hi? r— , 2007. MARATHON OIL COMPANY By: a (1s( � (4. 1 L.-1-Naine&Title: ' . LA Y 0-- 5- 1 AGREED TO AND ACCEPTED THIS 17 ADAY OF ° '4 -PA , 2007. CHEVRON SHALE OIL COMPANY, a division of Chevron U.S.A. Inc. 1 BY�• 1 Name & Title: (, 1 / i r� ft t.74- 1 1 Exhibit "A" QLS YS -3I PIPELINE EASEMENT AGREEMENT STATE OF COLORADO ) COUNTY OF GARFIELD ) THIS PIPELINE EASEMENT AGREEMENT, made this23r4lay of October, 2006, between Chevron Shale Oil Company, a division of Chevron U.S.A. Inc, a Pennsylvania corporation, with offices at 111 1 1 S. Wilcrest Dr., Houston, Texas 77099, hereinafter referred to as "GRANTOR" and Marathon Oil Company, an Ohio corporation, with offices at 5555 San Felipe Road, Houston, TX 77056, hereinafter referred to as "GRANTEE." WITNESSETH: WHEREAS, GRANTOR is the owner of certain real property in Garfield County, State of Colorado; and WHEREAS, GRANTOR desires to grant and GRANTEE desires to acquire certain rights in a portion of said real property; NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. GRANT OF EASEMENT. GRANTOR hereby grants to GRANTEE, subject to tit{ terms and conditions hereof, the following easement: A. A non-exclusive pipeline right-of-way in certain parcels situated in Sections I, 12, and 13, T6S-R97W, and Sections 19, 20, 29, and 33, T5S, R96W, of the 6th P.M., Garfield County, Colorado and is more particularly described in Exhibit "A", which is attached to this Agreement. This right-of-way is one hundred feet (100') in width, the centerline of said right- of-way being situated directly over the proposed pipeline right-of-way as further detailed in Exhibit "A", for the sole purpose of surveying, laying, constructing, operating, inspecting, maintaining, repairing, replacing, and removing multiple pipelines (with above -ground valves, drips, meters, fittings, appliances, and related facilities), for the transportation of natural gas and associated liquids and gases, and water, hereinafter referred to as "the pipeline", over and through the land described in Exhibit "A" hereof, hereinafter referred to as the "Easement Area," in the County of Garfield, State of Colorado. The rights granted herein do not include the right to explore for or produce oil, gas or other minerals, and do not include agricultural, farming, ranching or hunting rights. This Grant of Easement is strictly limited to the acreage as described in Exhibit "A" and if GRANTEE disturbs any of Grantor's Lands which are not a part of this agreement, GRANTEE shall pay damages to Grantor for the disturbance and shall immediately restore said lands to their original condition. If any pipelines or related equipment are installed in, on, or under any acreage other than that specifically set forth on Exhibit "A," then upon Grantor's written request, Grantee shall immediately remove that portion of pipeline and/or equipment, re-route and/or relocate the pipeline and/or equipment, and shall restore the disturbed acreage (both the portion disturbed which is located outside of that specified on Exhibit "A," and that portion disturbed located within Exhibit "A") to the its original condition. B. GRANTEE shall have the right of ingress and egress in, on, over, across and through the Easement Area for any and all purposes necessary to the exercise by GRANTEE of the rights and right-of-ways granted herein. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit 11A1e C. GRANTOR reserves the right for itself or its assignees to explore for, mine, and remove oil shale, oil and gas, ores and other minerals in, on or under the Easement Area. D. This Agreement is made subject to all existing easements, rights-of-way, licenses, leases and other agreements affecting the surface or subsurface of the Easement Area and GRANTOR further reserves the right to grant other easements to third parties to cross over or under this easement and right -of ways. GRANTEE is responsible for obtaining any necessary third party consents prior to conducting activities on the Easement Area pursuant to this Agreement. E. GRANTOR makes no warranties or representations concerning the title to the Easement Area. 2. COVENANT THAT OPERATION OF EASEMENT NOT INTERFERE WITH SERVIENT TENEMENT. A. GRANTEE agrees to maintain and operate the easement herein granted in such manner that the operation thereof will in no way hinder or prevent the use and enjoyment of GRANTOR's adjoining property, including use thereof for exploration, mining, oil shale development, oil and gas development, fanning, ranching and land development. 13. Except for above -ground valves, meters, drips, fittings, appliances, and related facilities as provided for herein, GRANTEE shall have no right to locate any permanent surface installation on any pari of the Easement Area without the prior written approval of GRANTOR, which approval is separate from and in addition to any rights granted in this Pipeline Easement Agreement. C. GRANTEE agrees to remove top -soil from the Easement Area separately from other material removed by GRANTEE in connection with its activities on the Easement Area, and to replace such topsoil on completion of any such activity. GRANTEE further agrees to insure that the Easement Area shall be left free of any large stones, holes, or piles of dirt which would interfere with fanning, ranching and/or other operations thereon. All stones, brush and debris uncovered on, removed from or deposited on GRANTOR's lands as the result of activities permitted hereunder shall be disposed of at GRANTOR's direction. Except as otherwise provided herein, all areas disturbed as the result of activities permitted hereunder, within three months of installing pipe into the Easement shall be reclaimed to original condition or as near thereto as practicable, which shall include reseeding with seed mixes approved by GRANTOR or GRANTOR's agricultural lessee(s). Grantee shall continue to reseed and cultivate until successfully reestablishing self sustaining vegetation. Reseeded areas shall be properly mulched except in pastures and hay fields. GRANTEE shall spray all areas affected by construction to control noxious weeds for a period of no less than three growing seasons following the installation of pipe. D. GRANTEE agrees to replace or rebuild, to the satisfaction of GRANTOR, any and all parts of any road or any drainage or irrigation system or other improvement that may be damaged in connection with GRANTEE's activities conducted pursuant to this Agreement. Upon completion of any pipeline construction, replacement, substitution, relocation, or removal activities permitted hereunder, GRANTEE shall grade all permanent roads on GRANTOR's lands which were used in connection with said activities. E. GRANTEE shall have the right to cross fences on the adjoining property of GRANTOR whenever such crossing shalt be reasonably necessary in conducting activities permitted under this Agreement. GRANTEE shall maintain a proper enclosure at all times and shall restore such fences to a condition equal to or better than their condition prior to such crossing as promptly as possible provided, however, that GRANTEE shall not be responsible for a lack of proper enclosure or for restoration of fencing if caused by someone other than GRANTEE, its employees, agents, contractors, subcontractors, or invitees. F. GRANTOR reserves the right to fence the whole or any part of the boundaries of the right-of-way, and the right to build fences crossing such easement. z Exhibit "Arr G. GRANTEE shall bury its pipeline and subsurface facilities to provide a minimum of thirty-six (36) inches between the top of the pipeline and facilities and the ground level except in those areas where rock is encountered that would otherwise require blasting, in which case, the facilities shall be buried a minimum of eighteen (18) inches below the surface. H. Except as otherwise provided herein, GRANTEE shall properly backfill and compact disturbed ground, excavated pipeline trenches, and other excavations in connection with its activities on the Easement Area. Compaction of disturbed areas in hay fields and pastures shall be accomplished using hydro -compaction methods followed by replacement of topsoil, free of stones and other debris. Immediately upon completion of any activity performed under this Agreement, GRANTEE shall repair damage to open irrigation and drainage ditches by using proper mechanical ditch channel compaction methods and by reestablishing pre -disturbance grades and Bowlines. All culverts and buried irrigation system pipelines damaged by the activities permitted hereunder shall be replaced by GRANTEE immediately upon completion of the activity. 1. GRANTEE shall have the ongoing responsibility of assuring that irrigation systems damaged by the activities permitted hereunder are restored to their proper operating condition and that areas of settling and slumping in GRANTOR's fields and pastures, caused by the activities permitted hereunder, are permanently restored to field grade. J. Except as otherwise provided herein, GRANTEE shall maintain current as -built drawings for the pipeline and all of its surface and subsurface facilities located within the Easement Area and shall provide GRANTOR with copies of such drawings each time they are updated. K. GRANTEE shall take all necessary precautions, in conducting its activities under this Agreement, to prevent brush and grass fires. L. GRANTEE shall determine if any activities require any permits or approvals from any agencies, organizations, groups, governmental committees or other entities having jurisdiction over such activities and shall be solely responsible for obtaining such approvals or permits. M. GRANTEE shall participate in conducting a vegetative cover and sage grouse habitat study, auroved by a Chevron Health, Environment & Safety representative, in Section 29, T5S, R96W 6 P.M. Said study shall be initiated, to the satisfaction of GRANTOR, before pipeline construction in said Section 29 proceeds. The study shall include a mutually agreeable time frame covering the period before, during and after pipeline construction activities in said section. A mitigation plan for said Section 29 shall be developed by GRANTOR, based on the results of said study and other information, and implemented at the sole cost of GRANTEE. N. A segment of the proposed pipeline corridor on GRANTOR surface, approximately between and including lines L142 and LI51, will parallel a steep two -track road and adjacent gulley heading north into the Bear Run drainage in the NW/4, Section 29, T5S, R96W 6`" P.M. The pipeline corridor and pipelines located therein shall not encroach on or be placed in said gulley. Following construction of pipelines in said segment, GRANTEE shall place and maintain obstacles across the two -track road so it can no longer be used. O. GRANTEE shall comply with alt federal, state and local laws and regulations governing the discharge of construction and other material into drainages. GRANTEE shall be responsible for the adequacy of its pipeline designs and construction, including, but not limited to, design and construction of drainage crossings. P. GRANTEE shall control fugitive dust during construction of the pipeline on GRANTOR surface. Q. GRANTEE shall ensure all pipeline corridor cut and fill areas and other disturbed areas on GRANTOR surface are recontoured to generally conform with the surrounding terrain. 3 Exhibit "A" R. Pipeline construction activities on GRANTOR surface shall be coordinated with GRANTOR's surface lessees to minimize conflicts for both GRANTEE and the lessees. 3. TERM OF AGREEMENT. Unless terminated or canceled prior thereto in the manner provided for herein, the term of this Agreement shall be a period of one (1) year from the effective date hereof, and shall continue so long as GRANTEE continues to use and maintain the pipeline and associated facilities in the Easement Area without interruption for more than one hundred eighty (180) consecutive days, at which time GRANTOR will have the option of terminating this Agreement as provided in Paragraph 9B. 4. PAYMENTS. GRANTEE shall pay to GRANTOR a payment in the amount of four thousand dollars ($4000) upon execution of this agreement. An annual payment, as hereinafter described, shall be made by GRANTEE to GRANTOR on or before each anniversary date of this Agreement, at the address first set forth below in this Section 4. The first of such annual payments shall be in the amount of four thousand two hundred dollars ($4200). Said annual payment shall thereafter increase by Five percent (5%) each year. No payment shall be deemed made by GRANTEE under this Agreement until the correct amount due is actually received by GRANTOR. All payments to GRANTOR hereunder shall be made by GRANTEE's check, mailed postage prepaid, to GRANTOR at Chevron Shale Oil Company, P.O. Box 840659, Dallas, TX 75284-0659, which shall continue as the depository for payments hereunder regardless of changes in ownership of the Easement Area, until such time as Grantee is notified, in writing, of a change of corporate name, identity and/or address of GRANTOR. Said payment shall reference this Agreement's QLS as found at the top of page one of this Agreement. 5. USE OF EASEMENT AREA. A. All activities permitted under this Agreement shall be performed and conducted in a careful, safe, and workmanlike manner, and in such manner as will not interfere with GRANTOR's and GRANTOR's lessees', licensees', and permitees' exploration, mining, oil shale, oil and gas, fanning, ranching, land development and/or other operations on other lands in the vicinity of the Easement Area. Prior to exercising any rights granted hereunder, GRANTEE shall give notice of GRANTEE's planned construction activities to all persons holding any rights, licenses, permits, easements or lrpvs to use the surface of the Easement Area and lands used for access thereto. B. All activities permitted pursuant to this Agreement shall be performed by or under the direction of GRANTEE, and GRANTEE shall not permit, unless otherwise authorized by GRANTOR, public easements, public facilities, or public roads over or under the Easement Area. C. GRANTEE shall keep the pipeline and associated facilities in a good and safe condition and, after doing any work which disturbs the surface of the Easement Area, GRANTEE shall restore the surface of the Easement Area to as good a condition as existed prior to such work. D. Notwithstanding that GRANTEE may have obtained GRANTOR's approval under this Agreement to make various uses of the Easement Area, GRANTEE's operations shall be subordinate to GRANTOR's right to conduct shale oil operations on the Easement Area at any time in the future. If GRANTOR determines in its reasonable discretion that GRANTEE's operations will interfere with GRANTOR's shale oil operations, GRANTEE agrees to change, cease or relocate its operations in order to eliminate the interference. Costs incurred prior to January 1, 2018 in connection with the relocation of GRANTEE's pipeline, valve terminals, gathering systems and other related facilities in order to eliminate interference shall be home by GRANTOR. Effective January 1, 2018 and thereafter, GRANTEE agrees to change, cease or relocate its operations at its sole risk and cost, in order to eliminate any interference and GRANTOR shall have no obligation to compensate GRANTEE for lost production or for the costs and expenses of relocating or ceasing operations resulting from such elimination of interference. 4 Exhibit "A" 6. INDEMNIFICATION. GRANTEE AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD GRANTOR AND ALL OF GRANTOR'S AFFILIATED AND PARENT AND SUBSIDIARY COMPANIES, JOINT VENTURERS AND PARTNERS, AND ALL OF THE AFORESAID ENTITIES' OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AGENTS, INVITEES AND INSURERS ("INDEMNITEES") HARMLESS, FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, DAMAGE, INJURY, COSTS (INCLUDING ATTORNEY FEES), EXPENSES, FINES, CLAIMS, DEMANDS AND CAUSES OF ACTION ARISING OUT OF, OR IN ANY WAY CONNECTED WITH GRANTEE'S ACTIVITIES OR OPERATIONS UNDER THIS AGREEMENT, FOR INJURY TO OR ILLNESS OR DEATH OF ANY PERSON (INCLUDING BUT NOT LIMITED TO AN INDEMNITEE OR AN EMPLOYEE OR AGENT OF GRANTEE OR GRANTEE'S CONTRACTORS OR SUBCONTRACTORS OR ANY THIRD PARTY) OR FOR LOSS OF OR DAMAGE TO PROPERTY (INCLUDING BUT NOT LIMITED TO PROPERTY OF INDEMNITEES, GRANTEE, GRANTEE'S CONTRACTORS OR SUBCONTRACTORS OR ANY THIRD PARTY) OR FOR VIOLATION OF ANY FEDERAL, STATE OR LOCAL LAWS, RULES, REGULATIONS, AND ORDERS INCLUDING BUT NOT LIMITED TO CERCLA AND RCRA. SUCH INDEMNITY SHALL APPLY EVEN IN THE EVENT OF AN INDEMNITEE'S OWN NEGLIGENCE, WHETHER SUCH NEGLIGENCE 1$ SOLE, COMPARATIVE, CONTRIBUTORY, CONCURRENT, ACTIVE, OR PASSIVE, AND REGARDLESS OF WHETHER LIABILITY WITHOUT FAULT IS IMPOSED OR SOUGHT TO BE IMPOSED ON ONE OR MORE OF THE INDEMNITEES. THIS INDEMNITY SHALL NOT APPLY TO THE EXTENT THAT IT IS VOID OR OTHERWISE UNENFORCEABLE UNDER APPLICABLE LAW. 7. GRANTEE INSURANCE REQUIREMENT. Without in any way limiting GRANTEE's liability under this Agreement, GRANTEE shall maintain, during the term of this Agreement, the following insurance with companies and on terms satisfactory to GRANTOR: A. Worker's Compensation and Employers' Liability Insurance as prescribed by applicable law. The limit of liability for Employers' Liability Insurance shall not be less than S1,000,000 per occurrence. B. Comprehensive or Commercial General Liability Insurance (Bodily Injury and Property Damage), including the following supplementary coverages: Contractual Liability to cover liability assumed by GRANTEE under this Agreement; Product and Completed Operations Liability Insurance; Broad Form Property Damage Liability Insurance; and coverage for Explosion, Collapse and Underground Hazards. The limit of liability for such insurance shall not be less than 11,000,000 per occurrence. C. Automobile Bodily Injury and Property Damage Liability Insurance. Such insurance shall extend to owned, non -owned and hired automobiles used in the performance of this Agreement. The limits of liability of such insurance shall not be less than 11,000,000 per person/ $1,000,000 per occurrence for bodily injury and 11,000,000 per occurrence for property damage. The insurance specified in this Section Seven shall contain a waiver of subrogation against GRANTOR, and shall name GRANTOR as an additional insured with respect to the activities performed pursuant to this Agreement. In addition, said insurance shall include a requirement that the insurer provide GRANTOR with 30 -days' written notice prior to the effective date of any cancellation or material change of the insurance. PRIOR TO HAVING ANY RIGHT TO ACCESS THE LANDS SUBJECT HERETO OR EXERCISING ANY OF THE RIGHTS GRANTED IN THIS AGREEMENT, GRANTEE MUST FURNISH GRANTOR WITH CONES OF THE INSURANCE POLICIES OR CERTIFICATES OF SAID INSURANCE PROVIDING THE COVERAGES AND ENDORSEMENTS REQUIRED HEREIN. All insurance policies or certificates of Insurance provided to GRANTOR shall be in a form acceptable to GRANTOR, shall reference this Agreement's QLS number as found at the s Exhibit "A11 top of page one of this Agreement and shall be provided to GRANTOR prior to GRANTEE exercising any of the rights granted herein. 8. TAXES, LIENS AND ENCUMBRANCES. GRANTEE agrees to pay promptly and before delinquency all taxes and assessments levied or assessed upon or against the Easement Area during the term hereof, by reason of, or resulting from GRANTEE's activities under this Agreement in relation to the pipeline and associated facilities, and to reimburse GRANTOR for any increase in taxes paid by GRANTOR resulting from the value of such pipeline and associated facilities, whether or not separately assessed. GRANTEE shall pay all taxes levied or assessed upon or against GRANTEE's pipeline and associated facilities and operations on the Easement Area. 9. TERMINATION. A. In the event of any default by GRANTEE in its obligations hereunder, GRANTOR may deliver to GRANTEE written notice specifying the default. If the default remains uncorrected for a period of thirty (30) days after delivery of the notice, this Agreement may then be terminated in writing by GRANTOR subject to the provisions herein concerning site reclamation and facility removal and subject to liabilities accrued prior to termination. GRANTOR'S right to terminate this Agreement when GRANTEE has not corrected a default within thirty (30) days, shall be a continuing right of GRANTOR for the life of this Agreement. If this Agreement is terminated under this provision, said termination shall be effective the date the notice of same is placed in the mail addressed to GRANTEE. B. If, at any time after GRANTEE begins construction of the pipeline, GRANTEE fails to use the Easement Area or any linear part thereof for the purposes provided hereunder for more than one hundred eighty (180) consecutive days, GRANTOR may terminate this Agreement as to those parts of the Easement Area no longer used as above, by written notice to GRANTEE, subject to the provisions herein concerning site reclamation and facility removal and subject to liabilities accrued prior to termination. At such time as GRANTEE has reached the one hundred and eighty (180) day threshold, GRANTEE must deliver notice of the nonuse to GRANTOR within one (1) month of said threshold date. If GRANTEE fails to deliver said notice of nonuse to GRANTOR within the specified one (1) month time period, then this Agreement shall automatically terminate. C. Upon any termination of this Agreement as to all or any linear part of the Easement Area, and unless otherwise approved by GRANTOR, GRANTEE shall dig up and remove its pipeline and associated facilities. GRANTEE shall have a period of six (6) months from and after the effective date of termination in which to remove the pipeline and all of its associated facilities from the Easement Area or from the part thereof as to which the termination applies. Upon such removal, GRANTEE shall place the Easement Area in a neat, safe and orderly condition. D. Upon termination of the rights herein given, GRANTEE shall execute and deliver to GRANTOR, within thirty (30) days after written demand therefore, a good and sufficient quit claim deed to all interest of GRANTEE in the Easement Area so terminated. Should GRANTEE fail or refuse to deliver to GRANTOR such quit claim deed, or if GRANTOR after a good faith effort to locate GRANTEE is unable to locate GRANTEE, then a written notice by GRANTOR, duly recorded, reciting the failure or refusal of GRANTEE to execute and deliver said quit claim deed, or inability to locate GRANTEE, as herein provided, shall after ten (10) days from the date of recordation of said notice, be conclusive evidence against GRANTEE and all persons claiming under GRANTEE of the termination of this Agreement or a portion thereof and all interest of GRANTEE hereunder as to that portion, subject to GRANTEE's obligation to remove its property within six (6) months of such termination. E. Termination shall not operate to extinguish any obligations of GRANTEE which have accrued at the time of termination, or which accrue hereunder upon termination. 10. TRANSFER OF INTEREST. The rights granted to GRANTEE under this Agreement shall not be assigned or otherwise transferred without the prior written consent of 6 Exhibit "A" GRANTOR. Subject to the foregoing, all of the terms, covenants, and conditions of this Agreement shall be binding upon the successors and assigns of the parties. 11. WAIVER CLAUSE. The failure of either party to enforce, at any time, any of the provisions of this Agreement, or to exercise any option which is herein provided, or to require at any time, performance by the other party of any of the provisions hereof, shall in no way be construed to be a waiver of such provision, nor in any way affect the validity of this Agreement or any part thereof, or the right of a party to thereafter enforce each and every such provision. 12. APPLICABLE LAW. This Agreement and the exhibits hereto shall be governed as to validity, enforcement, construction, effect, and in all other respects, by the law of the State of Colorado, and its courts shall have jurisdiction to enforce this Agreement. 13. ATTORNEYS' FEES. In the event of a default by either party in the performance of its duties, the court with the proper jurisdiction to resolve the dispute shall award reasonable attorney fees and costs to the successful party or in such other manner as the court deems appropriate. 14. NOTICES. Any notices required or permitted under this Agreement shall be given in writing. The notice shall be served either personally or by registered or certified mail with return receipt requested. Service shall be effective when received. All notices hereunder shall be directed to the addresses set forth below or such substitute address or addresses as provided to the parties at least thirty (30) days in advance of any notice. Present addresses to which notices shall be sent in accordance with the provisions of this section are: GRANTOR: Chevron Shale Oil Company Attn: Manager, Shale Oil Development 11111 S. Wilcrest Dr. Houston, TX 77099 GRANTEE: Marathon Oil Company Attn: Land Manager, Piceance Basin 5555 San Felipe Road Houston, TX 77056 15. CONFLICT OF INTEREST. No director, employee, or agent of either party will give to or receive from any director, employee, or agent of the other party any commission, fcc, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. During the term of this Agreement and for 2 years, thereafter, any mutually agreeable representatives authorized by either party may audit the applicable records of the other party solely for the purpose of determining whether there has been compliance with this paragraph. The provisions of this paragraph will survive termination of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. Chevron U.S.A. Inc. Marathon Oil Company By: C tv Name P 1 Its: Attorney -in -Fact r Exhibit "A" STATE OF TEXAS COUNTY OF HARRIS The foregoing ij,strument was acknowledged before me this 074day of ettttteer, 2006 by C :OP J YjS191'l as Attomey-in-Fact for Chevron U.S.A. Inc. My Commission Expires: f -.j/� ..)/9pS Notary Public hlZa STATE OF TEXAS ) ) COUNTY OF HARRIS ELAINE J. GRABER Notary Texas J. Commission Expires X0'1 seplembei 30, 2008 The foregoing instrument was acknowledged before me this ,..;?-3 day of October, 2006 by ]nr� 1t.i0.CoN as MA orne;q-r-t ctr of Marathon Oil Company. My Commission Expires: Notary Public (Z-il}Q1tr_�`�/ \l•-iA ':547.:DEBORAH D. KUHLMAN 41* /Newt Public,M Commission Exof Texas pire,: "'-C;,�„`V January 17, 2010 X W 1 1 1 1 P.O. BOX 820 Exhibit "B" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 97 W PLAT FOR PROPOSED SECTION 12 PLAN OF DEVELOPMENT MAP 1 1 1 1 1 1 1 1 1 l 1 1 1 \, MEAS. N 8806'30" W 2636.0 REC. N 89'46' W 39.90 CH. MEAS. N 8805'19" W 2624.1 REC. N 8946' W 39.90 CH. 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 FROM MARATHON OIL COMPANY PAD 11X ORIGINAL R- 0 - UNE 1 LINE 2 LINE 3 LINE54 6 UNE 7 REC. N 89'42'00* W 39.92 CH. JOB NO. 26099 11/01/07/CED SEC 12 PLAT.dwg •INE LINEE 10 LINE LINE 12 LINE 13 LEGEND • FOUND GLO SURVEY MARKER O MONUMENT NOT FOUND OR SEARCHED - EXISTING ROAD PROPOSED GAS LINE PROPOSED WATER UNE _ EXISTING R -0-W ADDITIONAL 30' R -0-W TPROPOSED PIPELINE "T" MARATHON OIL COMPANY PAD 697-12A REC. NORTH REC N 89'42'00. W 39.92 CH. LINE TABLE FOR ADDITIONAL 30' RIGHT OF WAY LINE BEARING DIST. LINE 1 S 05'53'38" W 183.7 LINE 2 S 18'03'28" W 30.7 LINE 3 S 32'42'45" W 291.0 LINE 4 S 36'02'00" W 129.4 LINE 5 S 39'30'17" W 70.9 LINE 6 N 2622'05" E 304.5 LINE 7 S 02'48'27" W 187.9 LINE 8 S 23'40'28" E 136.1 LINE 9 S 28'17'57" E 73.5 LINE 10 S 39'50'14" E 64.9 LINE 11 S 44'38'06" E 218.2 LINE 12 S 38'07'31" E 291.0 LINE 13 5 65'54'14" E 155.4 e SURFACE DAMAGE AGR EIEMENT Lf 1676 - U I SURFACETHIS and V'day of Septem er,2007, be Seen AGREEMENT hevon ShaleagOilrCompany, a entered divisionof Chevron U.S.A. Inc, a Pennsylvania corporation, with offices at 11111 S. Wilcrest Dr., Houston, Texas 77099, (SURFACE OWNER) and Marathon Oil Company, an Ohio corporation, with offices at 5555 San Felipe Road, Houston, TX 77056, (OPERATOR). OPERATOR desires to conduct operations for drilling the wells listed on Exhibit "A" upon lands owned by the SURFACE OWNER. Each well listed on said Exhibit "A" has a plat attached hereto as a part of Exhibits "BI -B10". SURFACE OWNER and OPERATOR have reviewed the proposed locations and operations and enter into this Agreement to allow OPERATOR to use SURFACE OWNER's surface to: 1. Drill, operate and maintain the wells listed on Exhibit "A" at their specified locations 2. Build pad locations for the wells to the specifications as detailed in Exhibits "C I -C4" 3. Install new pipelines or build new roads as specified in Exhibits "D1 -D4" OPERATOR's right to conduct the operations referred to above on the surface lands or SURFACE OWNER which are subject to this Agreement (Subject Area) are subject to the following terms and conditions. A. This Agreement is made subject to all existing agreements, whether of record or not, affecting the surface or subsurface of the Subject Area, including, but not limited to, rights- of-way, licenses, leases and other agreements. SURFACE OWNER specifically reserves the right to grant other agreements to third parties to cross over or under the Subject Area. OPERATOR is responsible for obtaining any necessary third party consents prior to conducting activities on the Subject Area. The rights of OPERATOR to conduct operations and maintain facilities as set forth herein on SURFACE OWNER'S property arc subject to that certain Oil and Gas Lease dated November 15, 2002 (O&G Lease) between the parties. OPERATOR'S rights arc limited to those necessary to conduct operations under the O&G Lease and such rights will expire when and to the extent such facilities are no longer utilized in support of operations in furtherance of the CMG Lease. No rights granted herein by SURFACE OWNER will survive the termination of the 0&G lease. B. SURFACE OWNER makes no warranties or representations concerning the title to the Subject Arca. C. OPERATOR agrees to maintain and operate on the Subject Area in such manner that the operation thereof will in no way hinder or prevent the use and enjoyment of SURFACE OWNER's adjoining property, including use thereof for exploration, mining, oil shale development, oil and gas development, farming, ranching and land development. D. OPERATOR shall have no right to locate any additional surface installation, other than those indicated on the attached Exhibits, on any part of the Subject Area without the prior written approval of SURFACE OWNER, which approval is separate from and in addition to any rights granted in this Agreement. Notwithstanding any other provision of this Agreement, OPERATOR shall have no right to place any equipment on any location or otherwise make use of said location to benefit any well other than those listed on Exhibit "A". E. OPERATOR agrees to remove top -soil from the Subject Area separately from other material removed by OPERATOR in connection with its activities on the Subject Area, and to replace such topsoil on completion of any such activity. OPERATOR further agrees to insure that the Subject Area shall be left free of any large stones, holes, or piles of dirt which would interfere with fanning, ranching and/or other operations thereon. All stones, brush and debris uncovered on, removed from or deposited on SURFACE OWNER's lands as the result of activities permitted hereunder shall be disposed of at SURFACE OWNER's direction. Except as otherwise provided herein, all areas disturbed as the result of activities permitted hereunder, 1 within three months of any construction completion shall be reclaimed to original condition or as near thereto as practicable, which shall include reseeding with seed mixes approved by SURFACE OWNER. OPERATOR shall continue to reseed and cultivate until successfully reestablishing self sustaining vegetation. Reseeded areas shall be properly mulched except in pastures and hay fields. OPERATOR shall spray all areas affected by construction to control noxious weeds for a period of no less than three growing seasons following any building, installing, constructions or other activity allowed under this Agreement.. F. OPERATOR agrees to replace or rebuild, to the satisfaction of SURFACE OWNER, any and all parts of any road or any drainage or irrigation system or other improvement that may be damaged in connection with OPERATOR's activities conducted pursuant to this Agreement. Upon completion of any construction, replacement, substitution, relocation, or removal activities permitted hereunder, OPERATOR shall grade all permanent roads on SURFACE OWNER'S lands which were used in connection with said activities. G. OPERATOR shall bury its pipeline and subsurface facilities to provide a minimum of thirty-six (36) inches between the top of the pipeline and facilities and the ground level except in those areas where rock is encountered that would otherwise require blasting, in which case, the facilities shall be buried a minimum of eighteen (18) inches below the ground sur face. H. Except as otherwise provided herein, OPERATOR shall properly backfill and compact disturbed ground, excavated pipeline trenches, and other excavations in connection with its activities on the Subject Area, Compaction of disturbed areas in hay fields and pastures shall be accomplished using hydro -compaction methods followed by replacement of topsoil, free of stones and other debris. Immediately upon completion of any activity performed under this Agreement, OPERATOR shall repair damage to open irrigation and drainage ditches by using proper mechanical ditch channel compaction methods and by reestablishing pre -disturbance grades and flowlines. if OPERATOR's activities hereunder cause damage to lands not covered by this Agreement, in addition to any compensation required elsewhere in this Agreement, OPERATOR shall further compensate SURFACE OWNER for any and all losses caused by OPERATOR on said additional lands, Said damage payments shall be made either to SURFACE OWNER or its surface lessee, as directed by SURFACE OWNER at the bine of the payment. All culverts and buried irrigation system pipelines damaged by the activities permitted hereunder shall be replaced by OPERATOR immediately upon completion of the activity. 1. OPERATOR shall work in cooperation with SURFACE OWNER's Ranch Manager to coordinate all activities permitted hereunder. Prior to beginning any work allowed hereunder, OPERATOR shall contact and meet with SURFACE OWNER's Ranch Manager and Agricultural Lessee in attempt to minimize disruption and damages to land, irrigation systems, crops, grazing land, livestock, pasture, and other agricultural and grazing equipment and lands. J. OPERATOR shall have the ongoing responsibility of assuring that irrigation systems damaged by the activities permitted hereunder are restored to their proper operating condition and that areas of settling and slumping on SURFACE OWNER's surface, caused by the activities permitted hereunder, are permanently restored to field grade. K. OPERATOR shall maintain current as -built drawings for the Subject Area and all of its surface and subsurface facilities located within the Subject Area and shall provide SURFACE OWNER with copies of such drawings each time they are updated. L. OPERATOR shall take all necessary precautions, in conducting its activities under this Agreement, to prevent brush and grass fires. M. OPERATOR shall ensure all fresh water used on SURFACE OWNER's surface must come from a legal supply of water. N. OPERATOR shall pay to SURFACE OWNER a damage payment in the amount of two thousand five hundred dollars ($2540) upon execution of this agreement. 2 1 O. All activities permitted under this Agreement shall be performed and conducted in a careful, safe, and workmanlike manner, and in such manner as will not interfere with SURFACE OWNER's and SURFACE OWNER's lessees', licensees', and permitees' exploration, mining, oil shale, oil and gas, farming, ranching, land development and/or other operations on other lands in the vicinity of the Subject Area. P. All activities pennitted pursuant to this Agreement shall be performed by or under the direction of OPERATOR, and OPERATOR shall not permit, unless otherwise authorized by SURFACE OWNER, public facilities or public roads over or under the Subject Area. Q. OPERATOR shall keep the Subject Area and associated facilities in a good and safe condition and, after doing any work which disturbs the surface of the Subject Area, OPERATOR shall restore the surface of the Subject Area to as good a condition as existed prior to such work. R. Prior to exercising any rights granted hereunder, OPERATOR shall give notice of OPERATOR's planned construction activities to SURFACE OWNER's Ranch Manager and all persons holding any rights, licenses, permits or leases to use the surface of the Subject Area and Lands used for access thereto. S. No director, employee, or agent of either party will give to or receive from any director, employee, or agent of the other party any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. During the teen of this Agreement and for 2 years, thereafter, any mutually agreeable representatives authorized by either party may audit the applicable records of the other party solely for the purpose of determining whether there has been compliance with this paragraph. The provisions of this paragraph will survive termination of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. Chevron U.S.A. Inc. Marathon Oil Company Name: C, /�. i f .`e Name KQFNIQ its: Attorney -in -Fact Its: ATTORNEY-IN-FACT a 1 1 1 1 1 3 Re: Well Name: NOTICE REQUIREMENTS (RULE 31/5) Pad 11696-18A Wells included on this Pad 11696-18A-12 11696-I8A-I4 11696-IHA-I6 #696-18A-18 #696-I8A-21 11696- 18A-23 11696-18A-25 11696-18A-27 In accordance with the Colorado Oil and Gas Conservation Commission for Notices of Oil and Gas Operations, Rule 303, the following information is required to be provided: • Operations on the Pad 11696-18A arc estimated to commence on 8- 15-2007 Well tnue Unto • The Operator will be: Marathon Oil Company Operator 5555 San Felipe Address Houston, TX 77056 City state Zip Code If yuu have any questions regarding this notice, you may contact: I_riink Krugh al (713)296-3546 Representative Phone No, • 'Fite legal description of the surface lands upon which operations will be conducted are: SW — NFi —4 Sec. 18 Twp. 6S Rng, 9fi1V 6th P.M. Garfield County, Colorado. County • The surface owner has the responsibility for notifying any affected tenant of the proposed operations. • In lieu of including 0 return addressed, postage prepaid postcard upon which you niay request your preference with respect to consultation requirements, please call the phone number recited above to schedule an appointment. • A brochure describing surface owner rights and copy of onsite inspection policy are enclosed. 13y signing below, the surface owner waives the above notification requirements of Rule 305. (List below any Rule 305 notice requirements excluded from this waiver) Snrae U+rner Signalurc nine Cho 'ton Mole Uil Comlriny I I I t 1 S Wilms( nouvun, rX 77079 11>: _ • • 9.-.)sf07 N;n ur I me: 40 64e j--1� ^A4 (/ SURFACE OWNER CONSULTATION (RULE 306) Marathon Oil Company confirms that the surface owner Operator Name consultation requirements of Rule 306 have been completed or waived for the following proposed well pad containing the wells listed below: Pad #696-18A NE to Sec. 18 Twp 6S Rng.96W 6th P.M. Pad Number Legal Description Garfield County Colorado Stale WELLS INCLUDED ON THIS PAD #696-1BA-12 2t696 -IBA -14 22696-18A-16 #696-18A-18 #1696-18A-21 # 696 - 18A - 23 # 696 - 18A - 25 # 696 - 18A - 27 Road Description: Existing roadway use and new construction as may be required. To be agreed upon by surface owner and operator. Name Frank M. Krugh Regulatory Compliance Manager Title i v4 Signature Sept. 4, 2007 Date EXHII3IT "131" WILL AM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R96W P.O. BOX 820 GREEN RIVER, WYOMING 82935 i1 13 LEGEND ®Fg1Nb GLO SURVEY MARKER o MONUMENT NOT FOUND OR SEARCHED ROADS PIPELINE .._ _ PROPOSED PIPELINE .550 EAST 2N0 NORTH PH, 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX' 307-875-3840 w$ MEAS. N 88^52'25' W 5222.1 REC. EAST 78.81 CH. MARATHON OIL COMPANY SHL 1696-18A--12 Lai. 39.10$.52.14144796' ' NAD 83 Long Lat.39;52417" t °` Long. 108.14732' NAD 27 El. 8097.3 GROUND MARATHON OIL COMPANY BHL 1696-18A-12 8 Lat. 39.52879' ry 4 Long. 108. 14770 I NAD 83 rr Cal: 39:52881 ,' — a ° Long. 108. 14707' I NAD 27 MEAS. N 88'43'54' W 2697.2 REC. EAST 40.00 CH. LOT 1 3878 FEL aorTLW HOLE LOCATION 696-18A-12 YELL LOCATION 696-18',-I2 LOT 2 LOT 4 j 8h ;r WAS. N 88 42'28' W 2255.8 REC. EASr 34.45 CH. 1, John 1. Dollnar of Green River, Wyoming hereby certify that in accordance with o request from Frank Krugh for Marathon 0!i Compony, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my dlrectlon made a survey on the 11 th day of July 2007, for the Surface Hole Location and Elevation of Marathon Oil Company, Well ,y696-1804-12 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the N/2NW/4NE/4 of Section 18, T 6 5, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, as shown on the above Section Map. Surface Hole Elevation of ungraded ground = 8097.3 fent. Datum based on Colorado State Plane Coordinate System Centro) Zone NAD 83. Vertical Dotum based on NAV() 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grld, based from GAS position in protect area. NOTE: Record bearings as shown are based on the General Lond Office survey, as approved on July 20, 1914. J08 NO. 26099 LEWCA GPS COOP OF 2.5 ON 07/3L/2007 07/21/07 CED IMPROVEMENTS: NONE PAD 696-18A/PA0696-1804 PLAT5.dw SURFACE USE: GRA2INQ SOUR OAK 9 AND NATURAL GROUND 696-18A--12 -a --SEAL-- EXHIBIT "B2" WILLIAM H. SMITH 8c ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 96 W 550 EAST 2ND NORTH GREEN RIVER, WYOMING 82935 PN. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATION"x' 307-875-3640 0 LEGEND • FOUND ao MIRKY MARXER MONUMENT ENDOT FOUND OR SEARCH ROADS PIPELINE __ PROPOSED P1PEUNE 0 S vs to' MEAS. N 88'52'25• W 5222.1 Rec. EAST 78.61 CH. BOTTOM HOLE LOCATION 599-16A-14 MARATHON OIL COMPANY SHL #696-18A-14 Lat. 39.52412' NAD 83 �' 1 Long. 108.14796' oat LOCATON Lat. 39.52415' -- 5l e96 -18A-14 Long. 108.14732' NAD 7 E7. 8097.3 GROUND MARATHON OIL COMPANY BNL #696-18A-14 8 Lat.39.52703' Long. 108.14768' f NAD 83 Loi. 39.52705' -.- $ Long. 108. 14704' 1 NAD 27 • MEAS N 88'054' W 2697.2 REC. EAST 40.00 CH. LOT LOT 2 LOT LOT4t. • s� MEAS. N 88.42'26' W 2255.6 REC. EAST 34.45 CH. 1, John 1. Oollnar of Green River, Wyoming hereby certify that in accordance with a request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, 7X 77056. 1 and or personnel under my direction mode o survey on the 11th doy of July 2007, for the Surface Hole Location and Elevation of Marathon 011 Company, Well x'696 -18A-14 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the S/2NW/4NE/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, Stote of Colorado, as shown on the above Section Map. Surface Hole Elevation of ungraded ground = 8097.3 feet. Datum based on Colorado Stote Plane Coordinate System Central Zone NAD 83. Verticol Datum based on NAVD 88 NGS Triangulation Station SHALE. Note; Basis of bearings are relative on grid, based from GPS position in protect area, NOTE Record bearings os shown are based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 MCA GPS COOP OF 2.5 ON 07/11/2007 07/21/07 CED IMPROWMENTS: NONE CE USE: GRAZING: OAN 696-18A/PAD696-18A PLATS.dwg ANDNAAnJlL GOUN696-18A-14 0• $n h «SEAL' P.O. sox 820 GREEN RIVER, WYOMING 82935 T 6 5 R 96 W 550 EAST 2N0 NORTH PH. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX. 307-875-364o EXHIBIT "B3" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS LEGEND `"FOUND GLD SURVEY MARKER OMONUMENT NOT FOUND OR SEARCHED ROADS MARINE _, PROPOSED PIPELINE w 8 MEAS. N 8852'25' W 1222.1 REC. EAST 78.81 CH. MARATHON OIL COMPANY SHL #696-18A-16 Lat. 39.52410' 1 NAD 83 Long. 108.14796' Lat, 39.52413" 1 NAD , 7 ,Q' Long. 108.14732' / f r El. 8097.3 GROUND MARATHON OIL COMPANY BHL #696-18A-16 Lot. 39.52527' J NAD 83 Long. 108.14766' Lai: 39:52529' J NAD 27 Lang. 108.14702' MEAS N 88'43'54" W 2697.2 REC. EAST 40.00 Cry. DOrnkl HOLE LOCA TION SO -IDA -16 LOT 1 "NuJ MJ E LOT 2 ICI LOCATION 896 -18A -r0 0' LOT 3 LOT4 w 2� MEAS. N 88'42'29' W 2255.6 REC. EAST 34.45 CH. 1, John 1. Dolinar of Green River, Wyoming hereby certify thot in accordance with a request from Fronk Xrugh for Marathon OA Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode o survey on the 11th day of July 2007, for the Surface Hole Location and Elevation of Marathon 011 Company, Well 1696-18A-16 being located within tho SW/4SW/4NE/4 of Section 18, and the Bottom (tole Location being located within the N/2SW/4NE/4 of Section 18, T 6 S, R 96 W, of the 6th Prfncipol Meridian, Garfield County, State of Colorado, as shown on the above Section Mop, Surface Hole Elevation of ungraded ground = 8097.3 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vortical Datum bused on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area, NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. J09 NO. 26099 LEWCA CPS COOP OF 2.5 ON 07/11/2007 07/21/07 CED 1MPROVUIIENTS: NONE ACE ALROSCRUB OAK 696-18A/PAD696-18A PLATS.dwg AjDNATURCROUN696-18A-16 -'SEAL'~ P.O. sox 820 GREEN RIVER, WYOMING 62931 T 6 5 R 96 W 550 EAST 2ND NORTH PH. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX. 307-875-3640 EXHIBIT "84" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 8 II 'N 0 LEGEND FOUND GLO SURVEY MARKER MONUMENT OR SEARCHED T FOUND ROADS PIPELINE _._ PROPOSED PIPEUNE N z i MEAS N 51312'25- W 5222.! REC. EAST 78.81 CN. pp8 tr z z NEtL 1.0CADON MARATHON OIL COMPANY 694:: 64`70 SHL 1696-18A-18 8 ff g- Lot. 39.52400' I NAD 83 Long. 108.14796' Lot. 39:52402' S' ,2� .. Long. 108.14732' NAD 27 EI. 8097,0 GROUND MARATHON OIL COMPANY OHL /696-18A-18 Lot. 39.52351 ' 1 NAD 83 Long. 108,147'63' Lat. 39:523537- NAD 27 Lang. 108, 14700' EAS, N 88'4,3 4• W 2997.2 PEC. EAST 40.00 q4, LOT! Bo rr»M wiz -- WARM 696-184--18 LOT 2 LOT LOT4 s~o flh MEAS N 88'422U' W 2255,8 x v REC. EAST 34.45 CH. 1, John 1. Dollnor of Green River, Wyoming hereby certify thot in accordance with o request from Fronk Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made o survey on the IIth day of July 2007, for the Surface Hole Location and Elevation of Marathon 011 Company, Well 1696-18A-!8 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the S/2SW/4NE/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, as shown on the above Section Mop. Surface Hole Elevation of ungraded ground = 8097.0 feet. Datum bused an Colorado State Plane Coordinate System Central Tone NAO 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Busts of bearings are relative on grid, based from GPS position in project arca, N015: Record bearings as shown are based on the General Land Office survey, os approved on July 20, 1914. J08 N0. 26099 LEICA GPS COOP OF 2.5 ON 07/U/2007 07/21/07 CED IMPROVEMENTS: NONE PAD 696- l8A/PAD696- f 8A PLATS.dw `'oRM E' USE: GRAZING': SCRUB OAK 9 AND NATURAL GROUND 696-18A-18 -.SEAL EXHIBIT "B5" WILL AM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T 6 S R 96 W P.O. BOX 820 GREEN RIVER, WYOMING 82935 LEGEND ® FOUNO GLO SUR4EY MARKER o MONUMENT Nor FOUND OR SEARCHED ROADS PIPELINE PROPOSED T PIPELINE W T 550 EAST 2ND NORTH PH. 307--875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX. 307-875-3640 MEAS. N 8852'25' W 5222.1 REC. EAST 78,51 a{, MARATHON OIL COMPANY \ \ SHL #696-18A-21 Lat. 39.52408" j NAD 83 Long. 108.14796' Lat. 39.52410'4 �0 Long. 108.14732' _IVAD �7 � 1 E!. 8097.2 GROUND MARATHON 0!L COMPANY BHL #696-18A-21 W g Lot. 39.52970' j NAD 83 Long.108.14332' N L3997— -- Long, 108. 14269' j NAD 27 WAS N 88'43'54' W 2097.2 REC, EAST 4o.0O CN. 2bO FNL BOTTOM HOLE LOCA 11W 998-I11A-21 LOT 1 90' HELI. LOCATION _, e98 -18A-21 6 86 xx LOT 3 LOT4 it o zr MEAS. N 88'42'2.' W 2255.9 REC. EAST 34.45 cn. 1, John 1. Dollnar of Green River, Wyoming hereby certify that in accordance with o request from Frank Krogh for Marathon 011 Compony, 5555 San Felipe, Houston, TX 77056. ! and or personnel under my direction mode a survey on the 11th day of July 2007, for the Surface Hole Locotion and Elevation of Marathon Oil Company, Wel! #696-18A-21 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the N/2NE/4NE/4 of Section 18, T 6 S, 1? 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, as shown on the above Section Mop. Surface Hole Elevation of ungraded ground = 8097.2 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum bosed on NAVO 88 NCS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area, NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 28099 07/21/07 CED PAD 696-18A/PA0696--18A PLATS,dwg LEICA GPS OOP OF 2.5 ON 07/11/2007 IMPROVEMENTS: NONE SURFACE USE: GRAZING: SCRUB OAK AND NATURAL GROUND 696-18A-21 -'SEAL 1 EXHIBIT "86" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T 6 S R 96 W P.O. BOX 820 GREEN RIVER, WYOMING 82935 .01 LEGEND FOUND Ota SURVEY MARKER Q c SEARCHENDOT FOUND ROADS PIPELINE PROPOSED PIPELINE R) ,46 77 g 550 EAST 2ND NORTH PH. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX' 307-875-3640 8 MEAS. N 888225' W 5222.1 REC. EAST 78.81 CH. MARATHON 01L COMPANY SHL #696-18A-23 Lat. 39.52406' I NAD 83 �' 1 HELL LOCATION 696, 1eA-23 u' Long. 108.14796' Lal: 39.52408' °b Long. 108.14732' I NAD 27 E'l, 8097.2 GROUND U0T71341 HOLE LOCATION 696-1844.23 MARATHON OIL COMPANY BNL #696-18A-23 Lot. 39.52764' NAD 83 Lang. 108,14347' -Ca3,-39:52766'' — NAD 27 _ Long.108.14234' MEAS N 88'4.3'54' W 2697.2 REC. EAST 40.00 CH. L LOT2 LOT 3 LOT 4 EAS. N 61342'28. W 2255.6 REC. EAST 34.45 H. 1, John 1. Donner of Green River, Wyoming hereby certify thot In accordance with o request from Frank Krugh for Marathon Oil Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 11th day of July 2007, for the Surface Hole Location and Elevation of Marathon 011 Company, Well //696-18A-23 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the S/2NE/4NE/4 of Section 18, 16 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, as shown on the above Section Mop. Surface Hole Elevation of ungraded ground 8097.2 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, bused from CPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914, JOB NO. 28099 LECA GPs (ATOP OF 2.5 ON 07/11/2007 07/21/07 CED 1MPR0VE74ENTS NONE ANaaRDSCRUB OAK 696— 18A/PA0696— 18A PLATS.dwg SURFACE USE GROUND 696-18A-2.3 1V q an LI EXHIBI'1' "B7" 410 WILL AM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R96W P,O, 60X 820 GREEN RIVER, WYOMING 82935 LEGEND • FOUND GLo SURVEY MARKER (-1MONUMENT NOT FOUND OR SEARCHED ROADS PIPELINE _— -'__ PROPOSED PPELINE 550 EAST 2ND NORTH PH. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAx' 307-875-3640 MEAS. N 8832'25' W 5222.1 REC. EAST 78.81 CH. MARATHON OIL COMPANY SHL #696-184-25 Lat. 39.52404' NAD 83 Long. 108.14796' Lot. 39.52406' ---" Long. 108.14732' NAD 27 Et. 8097.1 GROUND MARATHON OIL COMPANY 6 BHL #696-18A-25 Lot. 39.52559' p Long. 108,14362'} NAD 83 t� Lai 39.52561"-_- ..v -_. _ z Long. 108.14298' NAD MEAS N 88'43'54` W 2697.2 REC. EAsr 40.00 CH. 27 80TIOM HOLE LC^ARAM 6911..18A-25 N 16;63,,44 LOT 2 HELL LOCATION 698-18+-25 L LOT 3 LOT MEAS. N 88'42'28' W 2255.6 REC. EAST 34.45 CH. 1, John 1. (Miner of Green River, Wyoming hereby certify thot in occordanco with o request from Frank Krugh for Marathon Olt Company, 5555 San Felipe, Houston, 7X 77056. 1 and or personnel under my direction made o survey on the lith day of July 2007, for the Surface Hole Location and Elevation of Marathon 011 Company, Weil 1/696-18A-25 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Hole Location being located within the N/2SE/4NE/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridien, Garfield County, State of Colorado, as shown on the above Section Map. Surface Hole Elevation of ungraded ground = 8097.1 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVE) 88 NGS Triangulation Station SHALE. Note: Basle of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 LEJCA CPS 600P OF 2.5 ON 07/11/2007 07/21/07 CED IMPROKIIENrs: NONE PAD 696-18A/PAD696-18A PLATS.dwg SURFACE D NAATURAA GROUND SCRUB OAK 696-18A-25 P.O. Box 820 T 6 S R 96 W 550 EAST 2N0 NORTH ° EXHIBIT "138" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 P11. 307-875-3638 PLAT FOR SURFACE AND BOTTOM HOLE LOCATIONFAX' 307-875-3640 LEGEND • FOUND CLO SURVEY MARKER p MONUMENT NOT FOUND OR SEARCHED ROADS PIPELINE --- -.- PROPOSED PIPE JNE 6 w8 8 MEAS N 8812'25' W 5222.1 REC. EAST 78.81 04. MARATHON OIL COMPANY SHL #696-18A-27 Lat. 39.52402' NAD 83 Long. 508.14796' `- Lat.-39.52404'A�7 � Long. 108.14732' 1 8 El. 8097.1 GROUND MARATHON OIL COMPANY BHL #696-18A-27 Lat. 39.52353' I NAD 83 Long. 108. 14376' i- Lot 39:5.23551'--_ Long.108.14313'' NAD 27 MEAS. N 88'45'54' W 2697.2 REC. EAST 40.00 04. 0' 1052 frt. it x[LL L&Anav 696-18A^27 BOTTOM HOLE LOCA1l W 696-I8A-27 LOT 3 LOT4 4 MEAS. N 8842'28' W 2255,5 REC. EAsr 34.45 CH, 1, John 1. Dollnar of Green River, Wyoming hereby certify thot In accordance with o request from Fronk Krogh for Marathon Oil Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made o survey on the 11th day of July 2007, for the Surface fioie Location and Elevation of Marathon Oil Company, Well #696--18A-27 being located within the SW/4SW/4NE/4 of Section 18, and the Bottom Holo Locution being located within the S/2SE/4NE/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, as shown on the above Section Mop. Surface Hole Elevation of ungraded ground = 8097.1 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vortical Datum based on NAVD BB NGS Triangulation Station SHALE. Note; Basis of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 LEICA s's COOP OF 2.5 ON 07/71/2007 07/21/07 CED +MPROVEMENTS NONE PAD 696-1 BA/PA0696-1 BA PLATS, d w!J SURFACE USE: GRAZING. SCRUB OAK AND HAMRAL GROUND 696-18A-27 xY c3 Seale; 1"= 10' • WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 MARATHON OIL COMPANY GREEN RIVER, WYOMING 82935 SURFACE HOLE LOCATIONS FOR PAD 696-18A N 0139'50' E LA YDOWN 550 EAST 2ND NORTH PH. 307-875-3638 • • 696-181-18sjlf 896-184-27®1{MAO 83l 696-18A-25 1`NAD 83t 896-151-23®]tMAO 83j 696-184-21 696-184-16 171696 -Ids -14 696-18A-12 WAD 8374 1626630.74 `74 1625638.24 `74 162684874 "N 12665524 X74 1625660.74 N 162666823NAD 83 NAD 3L74 183 2 74 7 83 5 225314817 E 2253746.55 E 2,4'74853 E 2253748.77 E 21f1148.89 E 225149..7 5 225314925 E 22253149..43 NA027 744027 744027 NA027 74.4027 744027 NA027 673.97 E 263308.71 5 1253306.29 E 25330347 5 126-r1027 /15 5 E 16n X483 E 253309.01 E 253309.20 NEA11253309.36 Coordinates based on Grid Colorado State Plane Coordinate System, Central Zone, NADS3 and NAD 27 .108 NO. 26099 07/20/2007/CED PRD 696-1811/PAD696-18A SHLDWG PREPARED FOP.: PARA THAN OXL COMPANY P.O. Sox 3128 Hoovtrn. TX 77253 5555 Sm Felipe Houston. TX 77056 LOCA T70 4; SHL FOR PAD 696-18A W7141N THE NE/4 SECRON 18. 7 6 5 R 96 W, 671-1 PM. CARREi.O COUNTY. COLORADO NB N N I- S N--- n-- r w-- -- at EXHIBIT "110" WIL AM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.D. sox 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 BOTTOM HOLE LOCATIONS FOR PAD 696-18A SECTION 18, T6S, R96W 0 i a, ro JOB NO. 26099 07/10/07 WHD PAD 696-18A/696-184-OHLdwg MEAREC. 88'52'25 W 5222.1 696-184-12 N:1628371.12 E:2253271,48 NAD 83 N: 828381.85 MAD 27 E:1253431.40 550 Ea3T 2ND NORTH PH, 307-875-3638 FAX. 307-875-3640 698-18A-21 E:22 N: 626657.81 E:1254873,07 NA 898-18A-23 u; N: 7827920.18 E :2254451 .94 I NA N: 627910.9r E:1254611.87NA 898-18A-14 • N:1827730 54 1 NAD 8J E: 2253259. 17 NA27 E:1253419.11 6 N: 627721.271 "�— 660:D 7 898-18A--25 N:f8273.J1 E:2254388.745 NA (,'IU..4,'!JNA 83 jNAU 8J 1 E:2253246.88 J• 660,071 83 27 N: 827080.77 NAD 27 E:1253408,82 N: 8626448 848 E:2253234.58 J NAD 83 N: 626440.20JNAD 27 E: 1253394.53 27 !n 660.0 a' 896-18A-27 E:2254J25.53 N N:1826426.42 A N: 628417.16 INA E:1254485.46 Coordinates bosed on Grid Colorado State Plane Coordinate System Centro! Zone NAD 83 and NAD 27 83 27 83 27 PREPARED FOR: MARATHON OIL COMPANY P.D. Box 3128 Houston, TX 77253 5555 San FNIp. Houston, TX 77058 LOCATION: DHL FOR PAD 666-18A I41141N THE NE/4 SECTION 18, T8S, R97W,, 67N PM, GARFELD COUNTY, COLORA00 P.O. BOX 820 EXCCCC3CT "Cl" WILAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY Scop: 1"s 100' CONTOUR INTERVAL 2' PIPELINE_--�__ mao' 8,990 WELL 696-18A-18 9 w ACCESS ROAD 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 Fitt cur DRILL SITE PROPOSED FINAL CR _' 8092.0 7.3' SPACING BETNfEN YSLLS MARATHON OIL COMPANY MEL/ 698-18A-18 / / RESERVE PIT SIZE 209' X 75' X 15' SLOPE 1:1 RESERVE PIT CAPACITY 31,294 B8Le FULL 23,369 88Le WORKING CAPACITY 411TH 3' FREE BOARD JOB NO. 26099 07/07/2007/WHA TLW PAO 696-18A/PA0696-18A.DWG 3 8080 CUT/FTLL SLOPES: 1.5:1 QUANTITIES: TOTAL CUT - 22,924 BANK CUBIC YARDS TOTAL FILL - 12,877 BANK CUBIC YARDS TOPSOIL AT S INCHES OF DEP174 - .3,088 BANK CUBIC YARDS SPOIL - 6,959 BANK CUBIC YARDS DISTURBED AREA - 166,779 50. FT. OR 3.83 ACRES PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston, TX 77253 5555 Son Folio. Houston, TX 77056 LOCATION: PAO 696-18A 1851' FEL and 2264' /NL NELL FALLS WHIN DIE NE/4 SECTION 78, 165, R96W, 6171 PM. CARFIEI.D COUNTY, COLORADO SHEET 1 OF 4 EXHIBIT "C2" WIL M H. SMITH & ASSOC ES P.C. SURVEYING CONSULTANTS P.O. BOX 820 MARATHON OIL COMPANY GREEN RIVER, WYOMING 82935 8080.00 8080,00 8080.00 WELL 696-18A-18 t FINISHED GRADE 8092. -_......_ 432_ H i FINISHED GkADE 8092.0 2-187 FINISHED GkADE 8092.0 0.1-100 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 -300 200100 2 2Q000 100 0 -- - - 300 HORIZONTAL SCALE: 1"=-100 FEET VERTICAL SCALE: 1"=40.00 FEET RESERVE PIT SIZE 209' X 75' X 15' SLOPE — 1:1 RESERVE PIT CAPACITY 37,294 BBL. FULL 23,369 Ms WORKING CAPACITY MNTH 3' FREE BOARD JOB NO. 26099 07/07/2007/WHO PAD 696-18A/PAD696- f 8A.DWG CUT/F1LL SLOPES: 1.5:1 QUANTITIES: TOTAL CUT - 22,924 BANK CUBIC YARDS TOTAL FAL - 12,877 BANK CUBIC YARDS TOPSOIL AT 6 INCHES OF DEPTH - 3,086 BANK CUBIC YARDS SPOIL — 6,959 BANK CUBIC YARDS DISTURBED AREA - 166,779 50. FT.. OR 3.63 ACRES PREPARED FOR: MARATHON OIL COMPANY P.0, Box 3128 Houston, IX 77233 5555 San FelIPI Houston, TX 77056 LOCA TION: PAD 896-78A WITHIN Rif NE/4 SECTION 18, r6S, R96W, 6111 PM. GARFIELD COUNTY, COLORADO SHEET 2 Of' 4 P.O. BOX 820 GREEN RIVER, WYOMING N AL Soo's; 1 80' RESERVE PIT SIZE 209' X 75' X 15' SLOPE = 1:1 RESERVE PIT CAPACITY 31,294 88L, FULL 23,369 88Ls WORKING CAPACITY 741H J' FREE BOARD J09 NO. 26099 07/21/2007/CED PA0696-7 8A/PAD696-18A DRILL DIRECTION.DWG EXHIBIT "C3" WIL AM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 MARATHON OIL COMPANY PAD 696-18A DIRECTION LAYOUT / / 896 -IBA -12 - II / / / 69B -IBA -14 / / 699 -IBA -Ip / / - 696-154-21 '^'AA 696- IeA-23-� / 828-111A-25-...,07' '9' 696-I11A-I8 ' - -- N 5051a 1y 5?9'177•4. 1196.E -_ CU TILL SLOPES: 1.5: 1 QUANTITIES: TOTAL CUT .+ 22,924 BANK CUBIC YARDS TOTAL FILL m 12,877 BANK CUBIC YARDS TOPSOIL AT 8 INCHES OF DEPT 3,088 BANK CUBIC YARDS SPOIL ., 6,959 BANK CUBIC YARDS DISTURBED AREA a 166,779 S0. FL OR 3.83 ACRES / / 41( 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875--3640 PREPARED FOR: MARATHON OIL COMPANY P.O, Box 3728 Houston, TX 77253 5555 Son Felipe Houston, TX 77058 LOCA11c»4 PAD 696-18A VNBIIN THE NE/4 SECTION 18, T8$ 1196W. 6TH PM. GARFIELD COUNTY, COLORADO SHEET J of 4 P.O. BOX 820 GREEN RIVER, WYOMING Scale: 1 "= 80' EXHIBIT "C4" ;r WL 1AM H. SMITH 8c ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 MARATHON OIL COMPANY WELL 696 -18A --V RESERVE PIT SIZE 209' X 75' X 15' SLOPE 1:1 RESERVE PIT CAPACITY 31,294 08L3 FULL 23,389 88Le WORKING CAPACITY INT 3' FREE BOARD JOB NO. 26099 07/07/2007/WHD PAO 696-18A/PAD696—,8A FILL DRILL SITE PROPOSED FINAL GRADE 8092.0 MARATHON OIL COMPANY WELL 696-18A—V CUT/TILL SLOPES: 1.5:1 OUANTIDES: TOTAL CUT - 22,924 BANK CUBIC YARDS TOTAL RLL - 12,877 BANK CUBIC YARDS TOPSOIL AT 6 INCHES OF DEPT — 3,088 BANK CUBIC YARDS SPOIL - 6,959 BANK CUBIC YARDS DISTURBED AREA — 166,779 SO. FE OR 3.83 ACRES FACIIJTIES,DWG 550 EAST 2ND NORTH PN, 307-875-3638 FAX. 307-875--3640 PREPARED FOR: MARATHON OIL COMPANY PO Box 3728 Houston, TX 77253 5555 Son Fallps Houston, IX 77056 LOCA TION: PAO 696-18A 11TRRN THE NE/4 SECTION 18, T6S, R96W, 6714 PM. CARFIELD COUNTY, COLCRA00 SHEET 4 OF 4 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 660 UM MOND NORM PROM 007-670-x9e oamr aunt 1ST 907-676-9610 WPM wbnxdlbpa Dorn DRAWN 8Y. CED J J06 NO: 26099 ' DATE: 07/02/07 PAD NUMBER 696-18A LOCATED IN THE NE/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. SCALE: r-2 MILES VICINITY MAP FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 77056 TOPO MAP Al WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS Sao Last exaorm NOM P7fl art—firs—ale Drama wvsrt a1 s07—e7e-3530 .nom vAeratthpo.eom DRAWN BY: GED 1 JOB NO: 26099 J DATE. 07/02/07 PAD NUMBER 696-184 LOCATED 1N THE NE/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. SCALE: 1" — 1 MILE VICINITY MAP FOR ARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 77056 TOPO MAP A2 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O, BOX 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 PLAT FOR PROPOSED SECTION 18 PLAN OF DEVELOPMENT MAP (03) MEAS. N 88'52'25" W 5222.1 REC. EAST 78.81 CN. 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 • MEAS. N 88'4354' W 2697.2 REC. EAST 40.00 CN. JOB NO. 26099 01/04/08/CED SEC 18A PLAT REVISED,dwg MARARiON OIL COMPANY PAD 696-18A MEAS. N 8842'28' W 2255.6 REC. EAST 34.45 at LEGEND • FOUND GLO SURVEY MARKER O MONUMENT NOT FOUND OR SEARCHED EXISTING ROAD PROPOSED WATER AND GAS LINES TEXISTING PIPELINE PROPOSED PIPELINE 'T" h EXH • f ,. BIT "D3"; • • j www rt Nc7/4 1001 its R99 .r .44 -�Z • 1 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS MO UM' wow NORM PROM M7 -W>6--0036 oAnor NM try sor-a7i-3690 em wbiunithPe 640 DRAKN 8Y. CEO 1 JOB NO: 28099 DATE 07/02/07 PAD NUMBER 696—IBA LOCATED IN THE NE/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. SCALE 1" = 2000' C1. VICINITY MAP FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 77056 TOPO MAP A3 t2 IIIIii'j' ##Dd„ ACCESS .t' NW CORNER OF PAD LOOKING SOUTHEASTERLY ACCESS ROAD-\iiii ACCESS ROAD---- ertv.T vF iC y r•"�� ,rf•4tt 1: t NE CORNER OF PAD LOOKINO SOUTHWESTERLY ACCESS ROAD SW CORNER OF PAD LOOKING NORTHEASTERLY DRAWN BY: CED WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 88O NAST SWORD NORTH PION! 907-878-8858 ORM RIV 1R WV 507-876-9639 www, Miami thp4. corn rJOB N0: 26099 I DATE: 06/20/07 iA5.,:,,;C'7A:i5.'l.ie,j..t., .> Li .11..4i..1ott Y.YY.4.14•4•in;: SE CORNER OF PAD LOOKING NORTHWESTERLY PAD NUMBER 696-18A LOCATED IN THE NE/4, SECTION 18, TOWNSHIP 6 SOUTH RANGE 96 WEST, SCALE: N. ES. PHOTOS FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE _ HOUSTON,_TX 77056 PHOTO 81 "Exhibit A" NOTICE REQUIREMENTS (RULE t) Re: Well Name: Pad #i696 -1$C Wells Included on this Pad 1/696-18C-12 #696-18C-14 11696-18C-16 #696-1SC-18 1/696-18C-21 #696-18C-23 11696-ISC-25 1/696-18C-27 In accordance with the Colorado Oil and Gas Conservation Commission for Notices of Oil and Gas Operations, Rule 303, the following information is required to be provided: • Operations on the Pad 11696-18C are estimated to commence on 7-15-2007 Well Name Ante • The Operator will be: Marathon Oil Company Operator 5555 San Felipe Address Houston, TX 77056 City State zip Code • If you have any questions regarding this notice, you may contact: Frank Krugit at (713)296-3546 Representative Phone No. • The legal description of the surface lands upon which operations will be conducted are: NE — SW -4 See. 18 Twp. 6S Rng. 96W 6th PPM. Garfield County, Colorado. County • The surface owner has the responsibility for notifying any affected tenant of the proposed operations. • Included with this letter is a return addressed, postage prepaid postcard upon which you may request your preference with respect to consultation requirements under Rule 306. • A brochure describing surface owner rights is available upon request from: Colorado Oil and Gas Conservation Commission 1 120 Lincoln Street Suite 801 Denver, CO 80203 By signing below, the surface owner waives the above notification requirements of Rule 305. (List below any Rule 305 notice requirements excluded from this waiver) Surface Owner Signature Date 7- S'- 07 Name c. D. rine lit olM fr —;n ^ Fa cT iio • SURFACE DAMAGE AGREEMENT l THIS SURFACE DAMAGE AGREEMENT (Agreement) is made and entered into this 2.471 day of July, 2007, between Chevron Shale Oil Company, a division of Chevron U,S.A. Inc, a Pennsylvania corporation, with offices at 11111 S. Wilcrest Dr,, Houston, Texas 77099, (SURFACE OWNER) and Marathon Oil Company, an Ohio corporation, with offices at 5555 San Felipe Road, Houston, TX 77056, (OPERATOR). OPERATOR desires to conduct operations for drilling the wells listed on Exhibit "A" upon lands owned by the SURFACE OWNER. Each well listed on said Exhibit "A" has a plat attached hereto as a part of Exhibits "B 1 -B 10", SURFACE OWNER and OPERATOR have reviewed the proposed locations and operations and enter into this Agreement to allow OPERATOR to use SURFACE OWNER's surface to: 1. Drill, operate and maintain the wells listed on Exhibit "A" at their specified locations 2. Build pad locations for the wells to the specifications as detailed in Exhibits "C1-C4" 3. Install new pipelines or build new roads as specified in Exhibits "DI OPERATOR's right to conduct the operations referred to above on the surface lands of SURFACE OWNER which are subject to this Agreement (Subject Area) are subject to the following terms and conditions. A. This Agreement is made subject to all existing agreements, whether of record or not, affecting the surface or subsurface of the Subject Area, including, but not limited to, rights- of-way, licenses, leases and other agreements. SURFACE OWNER specifically reserves the right to grant other agreements to third parties to cross over or under the Subject Area. OPERATOR is responsible for obtaining any necessary third party consents prior to conducting activities on the Subject Area. The rights of OPERATOR to conduct operations and maintain facilities as set forth herein on SURFACE OWNER'S property are subject to that certain Oil and Gas Lease dated November 15, 2002 (O&G Lease) between the parties. OPERATOR'S rights are limited to those necessary to conduct operations under the O&G Lease and such rights will expire when and to the extent such facilities are no longer utilized in support of operations in furtherance of the O&G Lease. No rights granted herein by SURFACE OWNER will survive the termination of the 0&G lease. B. SURFACE OWNER makes no warranties or representations concerning the title to the Subject Area. C. OPERATOR agrees to maintain and operate on the Subject Area in such manner that the operation thereof will in no way hinder or prevent the use and enjoyment of SURFACE OWNER's adjoining property, including use thereof for exploration, mining, oil shale development, oil and gas development, farming, ranching and land development. D, OPERATOR shall have no right to locate any additional surface installation, other than those indicated on the attached Exhibits, on any part of the Subject Area without the prior written approval of SURFACE OWNER, which approval is separate from and in addition to any rights granted in this Agreement. Notwithstanding any other provision of this Agreement, OPERATOR shall have no right to place any equipment on any location or otherwise make use of said location to benefit any well other than those listed on Exhibit "A". E. OPERATOR agrees to remove top -soil front the Subject Area separately from other material removed by OPERATOR in connection with its activities on the Subject Area, and to replace such topsoil on completion of any such activity. OPERATOR further agrees to insure within three months of any construction completion shall be reclaimed to original condition or as near thereto as practicable, which shall include reseeding with seed mixes approved by SURFACE OWNER. OPERATOR shall continue to reseed and cultivate until successfully reestablishing self sustaining vegetation. Reseeded areas shall be properly mulched except in pastures and hay fields. OPERATOR shall spray all areas affected by construction to control noxious weeds for a period of no less than three growing seasons following any building, installing, constructions or other activity allowed under this Agreement. F. OPERATOR agrees to replace or rebuild, to the satisfaction of SURFACE OWNER, any and all parts of any road or any drainage or irrigation system or other improvement that may be damaged in connection with OPERATOR'S activities conducted pursuant to this Agreement. Upon completion of any construction, replacement, substitution, relocation, or removal activities permitted hereunder, OPERATOR shall grade all permanent roads on SURFACE OWNER's lands which were used in connection with said activities, G. OPERATOR shall bury its pipeline and subsurface facilities to provide a minimum of thirty-six (36) inches between the top of the pipeline and facilities and the ground level except in those areas where rock is encountered that would otherwise require blasting, in which case, the facilities shall be buried a minimum of eighteen (18) inches below the ground surface. I-1. Except as otherwise provided herein, OPERATOR shall properly backfill and compact disturbed ground, excavated pipeline trenches, and other excavations in connection with its activities on the Subject Area. Compaction of disturbed areas in hay fields and pastures shall be accomplished using hydro -compaction methods followed by replacement of topsoil, free of stones and other debris. hmnediately upon completion of any activity performed under this Agreement, OPERATOR shall repair damage to open irrigation and drainage ditches by using proper mechanical ditch channel compaction methods and by reestablishing pre -disturbance grades and flowlines. If OPERATOR's activities hereunder cause damage to lands not covered by this Agreement, in addition to any compensation required elsewhere in this Agreement, OPERATOR shall further compensate SURFACE OWNER for any and all losses caused by OPERATOR on said additional lands, Said damage payments shall be made either to SURFACE OWNER or its surface lessee, as directed by SURFACE OWNER at the time of the payment. All culverts and buried irrigation system pipelines damaged by the activities pennitted hereunder shall he replaced by OPERATOR immediately upon completion of the activity. I. OPERATOR shall work in cooperation with SURFACE OWNER's Ranch Manager to coordinate all activities permitted hereunder. Prior to beginning any work allowed hereunder, OPERATOR shall contact and meet with SURFACE OWNER's Ranch Manager and Agricultural Lessee in attempt to minimize disruption and damages to land, irrigation systems, crops, grazing land, livestock, pasture, and other agricultural and grazing equipment and lands. J. OPERATOR shall have the ongoing responsibility of assuring that irrigation systems damaged by the activities permitted hereunder are restored to their proper operating condition and that areas of settling and slumping on SURFACE OWNER's surface, caused by the activities permitted hereunder, are permanently restored to field grade. K. OPERATOR shall maintain current as -built drawings for the Subject Area and all of its surface and subsurface facilities located within the Subject Area and shall provide SURFACE OWNER with copies of such drawings each time they are updated. L. OPERATOR shall take all necessary precautions, in conducting its activities under this Agreement, to prevent brush and grass fires. M. OPERATOR shall ensure all fresh water used on SURFACE OWNER's surface must come from a legal supply of water 1 1 0, All activities perrnitted under this Agreement shall be performed and conducted in a careful, safe, and workmanlike manner, and in such manner as will not interfere with SURFACE OWNER's and SURFACE OWNER's lessees', licensees', and permitees' exploration, mining, oil shale, oil and gas, farming, ranching, land development and/or other operations on other lands in the vicinity of the Subject Area, P. All activities permitted pursuant to this Agreement shall be performed by or under the direction of OPERATOR, and OPERATOR shall not permit, unless otherwise authorized by SURFACE OWNER, public facilities or public roads over or under the Subject Area. Q. OPERATOR shall keep the Subject Arca and associated facilities in a good and safe condition and, after doing any work which disturbs the surface of the Subject Area, OPERATOR shall restore the surface of the Subject Area to as good a condition as existed prior to such work. R. Prior to exercising any rights granted hereunder, OPERATOR shall give notice of OPERATOR's planned construction activities to SURFACE OWNER's Ranch Manager and all persons holding any rights, licenses, pennits or leases to use the surface of the Subject Area and lands used for access thereto. S. No director, employee, or agent of either party will give to or receive from any director, employee, or agent of the other party any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. During the term of this Agreement and for 2 years, thereafter, any mutually agreeable representatives authorized by either party may audit the applicable records of the other party solely for the purpose of determining whether there has been compliance with this paragraph. The provisions of this paragraph will survive termination of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. Chevron U.S.A. Inc. Marathon Oil Company By:C.,p�54A42.44:. By: Name: C� irl4 7t8 •`t Name: on D. Wilmot E• Its: Attorney -in -Fact Its: t'"�"— EXHIBIT "BI" WILL M H. SMITH & ASSOCIATES P.C. P.D. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 96 W PLAT FOR SURFACE HOLE LOCATION kli LEGEND • POUND CLO SURVEY MARHER 0 MONUMENT Nor FOUND OR SEARCNEo REC. EAS 78,81 ch 550 EAST 2N0 NORTH PN. 307-875-3638 FAX. 307-875-3640 g MARATHON OIL COMPANY WELL #696-18C-'2 Lbt.-39:5"1 g82-'- NAD 83 - I Long, 108.15649' Lot. 39.51984' NAD 27 Long. 108.15 86° El. 8206.3 ROUND CALL, N ar'3e'23' CAC. 479.6' REC. NORTH REC, 7.26 ah CALC. 5 88'43'42" E 2661.0 REC. EAST 40.00 ch CALC, 5 88'43'42" E 2291.8 REC. EAST 34.45 ch 1, John 1. Dolinor of Green River, Wyoming hereby certify that in accordance with a request from Fronk Krvgh for Marathon ON Company, 5555 San Felipe, 1 -Houston, TX 77056. 1 and or personnel under my direction made a survey on the 15th day of June 2007, for the location and elevation of Marathon Oil Company, Well 11696-18C-12 as shown on the above Section Map os located within the 5E/4NW/4SW/4 of Section 18, r 6 S, R 95 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground J. 8206,3 feet, Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Verticol Datum based on NAW) 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative an grid, based from GPS position in project area. NOTE: Record bearings os shown ore based on the General Land Office survey, as approved on July 20, 1914, JOB NO, 26099 06/20/07 CED PAD 696-18C PLATS. d wg LOCA CPS COOP OF 23 ON 06/15/07 MMPROVEMOM NONE SWAGE USE CRAZING SCRUB OAK AND NAHMAL GROUND 696-18C-12 SHEET 1 of 2 "SEAL,- WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R96W PLAT FOR BOTTOM HOLE LOCATION P.O. BOX 820 GREEN RIVER, WYOMING 82935 LEGfNO *FOUND GLO SURVEY MARXER 0 MONUMENT Nor FOUND CW SEARCHED REC. EASE 78.81 ch MARATHON CIL COMPANY BHI. #696-16C-12 Eat. 39.52147 - - Long. 108.15710, NAD 83 Lat. 39.5214. Long.108.15646• NAD 27 DOtTOM HUE LOIA710N 691-18C-12 CALC. N 01'36 '23" CALC. 479.8 REC. NORTH RIC. 7.21 o1, LOCATION 698-18C-12 __J LOT 1 LOT 2 LOT 3 j + r I -- I- LOT 4 z� CALC. S 88'43'42" E 2291.8 W R.C.EEAST 34.45 ch 550 EAST 2ND NORTH PH, 307-875-3838 FAX. 307-875-3640 CALC. S 88'43'42" E 2661.0 REC, EAST 40,00 ch 1, John 1. Dolinor of Green River, Wyoming hereby certify that In accordance with o request from Fronk Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056, 1 and or personnel under my direction mode a survey on the 15th day of June 20on 011 ompany, os sshown onthe above 7, for the location oSection f hMap asCoca ed withinito he N/2NW/4SWm Hole Location/4of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Centro! Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, based from GPS position In project area. NOTE.: Record bearings os shown ore based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 08/20/07 CED PAD 696-18C PLATS.dwg MCA GAS .IMPROVIEWOM OF •3 CW 08/Y8/o7 SURFACE USE GRADOla SCRUB OAK AND NATURAL GROUND 698-18C-12 SHEET 2 of 2 «SEAL EXHIBIT "132" WILLI H. SMITH & ASSOCIATES P.C. P.O. Box 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 96 W PLAT FOR SURFACE HOLE LOCATION LEC;F'ND FOUND CLO SURVEY MARKER p MONUMENT OR SEARCHED T FOUND d t N w 4MN z t CALL. N or•30'2I3• CALC. 479.8 NEC. NORTH RIC. 7.28 a REC. EASE 78.81 ch MARATHON Olj. COMPANY WELL #696-18C--14 Lot. 39.51980r _ _ t NAD. Long. 108.15649' 83 Lot. 39.51982' NAD 27 Long. 108.155136' E1. 8205.8 GROUND 9 WO' 0' _ J727 -,r- A7J. LOCATION 608-I0C-I4 6or7011 NOTE !DCA T8 C- ,,,BCQ-I8c-4t G! 1 ' CALC. S 88'43'42" E 2661.0 REC. EAST 40,00 ch LOT 1 LOT 2 LOT 3 LOT 4 CALC. S 88'43'42" E 2291.8 REC. EAST 34.45 ch 1, John 1. Dalinar of Green River, Wyoming hereby certify that in accordance with a request from Fronk Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77058. 1 and or personnel under my direction mode o survey on the 15th day of June 2007, for the location and elevation of Marathon 011 Company, Well #696-18C-14 as shown on the above Section Mop as located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, Stote of Colorado. Elevation of ungraded ground = 8205.8 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertico! Datum based on NAW 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. JOB N0. 26099 06/20/07 CED PAD 696-180 PLATS.dwg !DOA GAS COOP OF 2.3 aN 08/16/07 dtENOVfMENTS NONE SERFAGE USE: 0RAZNQ scare LW! ANO NATURAL ONOUND 696-180-14 SHEET 1 of 2 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 —SEAL- • WILLI M H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 LEGEND ® FOUND CLO SURVEY MARKER o MONUMENT NOT FOUND OR SEARCHED PLAT FOR BOTTOM HOLE LOCATION REC. EAS 78.81 ch MARATHON 011. COMPANY OHL 41696--18C-14 --Lat, 39.5!•972.' 1- NAD &3- -- t - Long. 108.15709' Lat. 39.51974'' NAD 27 Long.108.15E46' • I ; 1 _ 1 t727 81TU I WET -L LOCAnom 890-18C-14 L_. BOTTOM HOLE LOCATION 600-18C-14 CALC. N 01'30'21` CALC. 479,1 REC. NORTH REC. 7.20 oh CALL. S 88'43'42" E 2661.0 REC. EAST 40.00 ch 4'1)18 LOT 1 LOT 2 LOT 3 LOT 4 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 O h CALC. S 884 c53'42` E 2291.8 n REC, EAST 34.45 ch 1, John 1. Dolnar of Green River, Wyoming hereby certify that In accordance with o request from Frank Krugh for Marothon 011 Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 15th day of June 2007, for the location of Marothon 011 Compony, Bottom Hole Location /698--18C-14 as shown on the above Section Map as located within the S/2NW/4SW 4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of/ Colorado. Datum bored on Colorado State Plane Coordinate System Centra! Zone NAD 83. Vertical Datum based on NAW 88 NGS Triangufotlon Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings os shown are based on the General Land Office survey, as approved on July 20, 1914. JOB N0. 26099 06/20/07 CEO PAD 696-180 PLATS.dwg MCA CPS GIMP OF 23 ON 00/15/07 IMPROVE:W + NONE SURFACE USE: ORAZ1NQ SCRUB OAK AND NATURAL. GI?DUN° 698-18C-14 SHEET 2 of 2 --SEAL". ;.. EXHIBIT "B3" WILLIVM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.0. BOX 820 T 6 S R 96 W VER GREEN RI, WYOMING 82935 LELND ® POMj01.0 SURVEY ()MONUMENT NOT FOUND OR SEARCHED rs Lit w 2 10z CALC. N 0P36 21i' CALC. 479,1 REC. NORTH REC. 7.26 oh PLAT FOR SURFACE HOLE LOCATION REC. EAS 7881 ch MARATHON OIL COMPANY WELL #696-18C-16 Lai. 39.5197 "- -1 NAD 83 Long. 108.159' Lai. 39.5198 NAD 27 Long.108.15 86' El. 8205.2 ROUND 'I' r I Neu LocAnal 696-,eC-18 0017014 HOLE LOCATION 66e- 16 CALC. S 88'43 42" E 2661.0 REC. EAST 40.00 ch LOT 1 LOT 2 LOT 3 LOT 4 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 a 1sN f A t g� CALC. S 88'43'42" E 2291.8 (.5 n REC. EAST 34.45 ch !, John 1. Dolinar of Green River, Wyoming hereby certify that In accordance with a request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the f5th day of June 2007, for the location and elevation of Marathon 0!1 Company, Well #696-18C-!6 as shown on the above Sectlan Mop os located within the S£/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Gar!leJd County, Stott) of Colorado. Elevation of ungraded ground ). 8205.2 feet. Datum based on Colorado State Plane Coordinate System Central Tone NAD 83. Vertical Datum based on NA W1 88 NGS Triangulation Stotfon SHALE. Note: Basis of bearings are relative on grid based from GPS position In protect area. NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 696-180 PLATS,dwg REVISED WELLS 01/!1/07/CED LECA CRS COOP Of 2.3 ON 06/15/07 IMPROVEMENM NONE SURFACE UW CJIADNG SCRUB DAX AND NATURAL C7LOUND 696-18C-16 SHEET 1 OF 2 -SEAL,- WILI:IM H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER. WYOMING 82935 T 6 S R 96 W PLAT FOR BOTTOM HOLE LOCATION LEGEND ® FOUND oi.0 SURVEY MARKER O MONUMENT NOT FOUND OR SCARCHLD REC. EAS 78.81 ch 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 MARATHON OIL COMPANY BNL #696-1!9C-16 Lat. 39.51 796 J NAD 5.3 - Long. 108.15709' Lat.39.51798 NW) 27 Long.108.15646 ' - 1.. FSO N+,�... CALC. N 0V39'23• CALK 470.8' REC. NORTH IEC. 7.29 oh IE1L LOC PON 898-18C-19 BOT1uu HOLE LocA»cIN CALC. S 88'43'42' E 2661.0 REC EAST 40.00 ch LOT 1 LOT 2 LOT 3 LOT 4 CALC. S 88'43'42' E 2291.8 REC. EAST 34.45 ch 1, John 1. Dollnar of Green River, Wyoming hereby certify that in accordance with o request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77058. 1 and or personnel under my direction made o survey on the 15th day of June 2007, for the location of Marathon 011 Company, Bottom Hole Location 5696-18C-16 as shown on the above Section Map os located within the N/2SW/4SW/4 of Section 18, T 6 S. R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVE) 88 NOS Triangulation Station SHALE. Note; Basis of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the Generol Land Office survey, as approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 696-18C PLATS,dw9 REVISED WELLS 01/11/07/CED GPs 000P Or 2.3 ON os/16/137111PRPRaVoio Ts NOPE SURrACE USE GRAZING SCRUB CAK AND NATURAL GROUND 696--18C-16 SHEET 2 OF 2 J 1u M "-SEAL", EXHIBIT "134" WILL M H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R s W PLAT FOR SURFACE HOLE LOCATION LEGEND a FOUND CLO SURVEY MARKER 0 MONUMENT NOT FOUND OR SEARCHED rr ry W S cs P4tvg z u3 CALC. N OY3e 2V1• CALL 479.8 REC. NORTH REC. 7.2$ a, REC. EAS 78.81 ch MARATHON OIL COMPANY WELL #696-18C-18 La}. 39...196 ' ..# NAD83_, Long. 108.15 49' Lot. 39.5196 NAD 27 Long.108.15586' El. 8202.5 GROUND too' FML to TIO A' ese-I j LOCATION 698-160.16 00• Fjoil CALC. S 88'43 42 E 2661.0 REC. EAST 40.00 ch LOT 1 LOT 2 LOT 3 LOT 4 CALL. S 88'43'42* E 2291.8 REC. EAST 34.45 ch 1, John 1. Dolfnar of Green River, Wyoming hereby certify that In accordance with o request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. I and or personnel under my direction made a survey on the 15th day of June 2007, for the location and elevation of Marathon 011 Company, Well /696--18C-18 as shown on the above Section Map as located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W,, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground 8202.5 feet. Datum based on Colorodo State Plane Coordinate System Centro, Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE Note: Bosis of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 698-18C PLATS.dwp MCA LIS COOP OF 23 ON 06/13/07 LUPROVEMEHTS NOW SURFACE USE: GIRA2Nia SCRUB OAK AND NATURAL GROUND 698-18C-18 SHEET 1 OF 2 550 EAST 2ND NORTH PN. 307-875-3638 FAX. 307-875--3640 W • fV •SEAL-.. WILLRM H. SMITH & ASSOCIA ES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 LEGEND & FOUND CLO SURVEY MARKER O MONUMENT NOT FOUND OR SEARCHED PLAT FOR BOTTOM HOLE LOCATION REC. EAS 78.81 ch MARATHON OIL COMPANY BHA #696-18C-18 AtTt. 39.5..162_. ' _1 NAD_ 83 Long. 108.1509' Lat. 39.5162i.•1 NAD 27 Long.108.15145' CALC. N 0t'36'2al" CALC. 479.9 RCC, NORTH REC. 7.24 oh c 880 Flit CALC. S 88'43 42 E 2661.0 REC. EAST 40,00 ch rvsR$' •t•••/18 84 - II f LOT 1 LOT 2 LOT 3 LOT 4 550 EAST 2ND NORTH PH. 307-875-3638 rot. 307-875-3640 is t•; 8 CALC, 5 88'43'42" E 2291.8 W REC. EAST 34.45 ch cc I, John 1. Dolinor of Green River, Wyoming hereby certify thot in accordance with a request from Fronk Krugh for Marathon Oil Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 15th day of June 2007, for the location of Marathon 011 Company, Bottom Hole Location #696-18C-18 as shown on the above Section Map as located within the S/25W/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado, Datum based on Colorado State Plane Coordinate System Centra! Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In protect area. NOTE: Record bearings os shown are based on the General Land Office survey, as approved on July 20, 1914. J09 NO. 26099 06/20/07 CED PAD 696-18C PLATS.dwg LEJCA GPS COOP OF 2.7 Av 04/19/07 IMPROVEMENTS: NONE SURFACE USE GRA21N0 SCRUB OAK AN' NAR/RAL GROUND 696—IBC--18 SHEET 2 OF 2 EXHIBIT "B5" WILL "%M H. SMITH & ASSOCIA ES P.C. SURVEYING CONSULTANTS P.O. BOX 820 r s $ R 96 W GREEN FRYER, WYOMING 82935 LEGEND • FCUND URKER 0 SURVEY pCR SEARCHENDOr FOUND PLAT FOR SURFACE HOLE LOCATION REC. EAS_ 78.81 ch MARATHON D► . COMPANY WELL #696--1'8C-21 Lat. 39.5198.4j... NAD 83 Long. 108.15649' • Lat. 39.51986;NAD 27 Long.108.15506' El. 8206.9 GROUND 18 Borrrj. sax LocAndN --e98-1SC-21 CALL. 11 a1'3e 21!• CALC. 479.8 BEC. NORTH REC. 7.28 oh CALC. S 88'43'42. E 2661.0 REC. EAST 4000 ch LOT 2 LOT 4 CALC. S 88'43'42" E 2291.8 RFC. EAST 34.45 ch 1, ohn I. r of requestJfrom FronkaKrugh fornMaraihon Wyoming1Cmpany, 5555fSanat In Felipe,cHo Houston, with o 77056. 1 and or personnel under my direction made o survey on the 15th day of Juno 2007, for the location and elevation of Marathon 011 Company, Well x{'696 -18C-21 as shown on the obove Section Map as located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungroded ground Q 8206.9 feet, Datum based on Colorado Slot* Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, bused from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey. as approved on July 20, 1914. JOB NO, 26099 06/20/07 CED PAD 696-18C PLATS,dwg LEICA 67S COOP Of 2.3 QV 08/73/07 WF'ROVIIIENTS: NOW StlRfACE UM (MAIM SCRUB OAK AND NATURAL CROOND 696-18C-21 SHEET 1 of 2 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 307-875-3640 fr f1 • 14 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 WILL M H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. sax 820 T 6 S R 96 W GREEN RIVER. WYOMING 82935 LEGEND FOUND GLD S1J0 V MARKER McWUVENT nor roux') OA SEARCHED CALL. N 01.38113' CALC. 479.8 REC. NOM REC. 7.78 oh c 6 PLAT FOR BOTTOM HOLE LOCATION REC. EAS_ 78.81 ch MARATHON DIL COMPANY BHL #696-18C-21 - Lat.39.52237 NAD 83 Long. 108.15238' Lat.39,52239 J NAD 27 Long. 108.15175' 6,70' c„sAsisl 1881 Fl. 1 Lr1 �✓ l � /r A0T7C14T Hai 1'0, j0 -8988---4C 21 �i lkii. LOCA i 698-18C-21 CALL. S 88'43'4r E 2661.0 REC. EAST 40.00 ch LOT 1 LOT 2 LOT 3 LOT 4 CALC. S 88'43'42' E 2291.8 REC. EAST 34.45 ch 1, John 1. Dolinor of Green River, Wyoming hereby certify that In accordance with a request from Fronk Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056, 1 and or personnel under my direction made a survey on the 15th day of June 2007, for the location of Marathon 011 Company, Bottom Hole Location /'698-1BC-21 as shown on the above Section Mop as located within the N/2NE/4SW/4 of Section 18, T 6 S, R 96 W of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Lond Office survey, as approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 696-18C PLATS.dwg WCA CPS GDLlo 0i 23 ON O8/1./07 IMMitAE}1ENT& NONE SURFACE U CRADNL! SCRUB cw Alm NATURAL GRDUhO 696-18C-21 SHEET 2 of 2 560 EAST 2N0 NORTH AN. 307-875-3638 FAX. 307-875-3640 • —SEAL EXHIBIT "116" WILL M H. SMITH & ASSOCIATES P.C. P.OBOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 96 W PLAT FOR SURFACE HOLE LOCATION LEGEND FOUND CLO SUR WY MARKER o MONUMENT NOT FOUND OR SEARCNLD CALL. H CALC. 470,a' REC. NORTH REC. 7.28 oh g O NO SEARCH MADE FOR MONUMENT r REC. EAS_ 78.81 ch MARATHON O1. COMPANY WELL #696-18C-23 Lat. 39.5197.E_.__.' NAD -83- . - Long. 108.15649' Lat. 39,51976' I NAD 27 Long. 108.15586' E1. 8204.2 GROUND S 11 II 1 I I sotrom nal. I_ _ LORA TM 7 010 1200 y 828- WC -23 I I CALL, S 88'43'42' E 2661.0 REC. EAST 40.00 ch 1 LOT 1 LOT 2 LOT 3 LOT 4 CALC. S 8843'42' E 2291,8 REC. EAST 34.45 ch 1, John 1, Dollnor of Green River, Wyoming hereby certify that In accordance with o request from Fronk Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056, 1 and or personnel under my direction made a survey on the 15th doy of June 2007, for the location and elevation of Morothon 011 Company, Well 8696-18C-23 as shown on the above Section Mop as located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground = 8204.2 feet. Datum based on Colorado State Plane Coordinate System Centra! Zone NAD 83, Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: 8asls of bearings are relotivo on grid, based from GPS position in protect orea. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914, JOB NO. 26099 06/20/07 CEO PAD 696-18C PLATS,dwg COCA GAS [DX»of23 co 06/15/b7 SURFACEHIPROMIDIUSE r NONE sava OAK ANBD NATURAL GROUND 696-18C-23 SHEET 1 OF 2 550 EAST 2ND NORTH PN. 307-875-3538 FAX. 307-875-3640 e9 n 1u SEAL.. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 LEGEND ®FOUND GLO SURVEY MARKER O MONUUFNT NOT FOUND OR SEARcnto PLAT FOR BOTTOM HOLE LOCATION ND SEARCH MADE FOR MONUMENT MARATHON Olei. COMPANY BHL #696-1 C-23 Lot 39.520621 NAD 83 I NAD 27 Long. 108.15 f,73' REC. EAS 78.81 ch �bsR` s BOTTOM HOLE 26 _DODOC-i6C-2J 19 CALC. N OT'Je 23' CALL. 479.e' REC. NORM REC. 7.213 oh CALC, S 88'43'42" E 2661.0 REC. EAST 40.00 ch 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 307-875-3640 LOT 1 LOT 2 LOT 3 LOT 4 A � z� CALL S 88'43'42" E 2291.8 CK REC. EAST 34,45 ch 1, John 1. Dolnar of Green River, Wyoming hereby certify that In accordance with o request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. I and or personnel under my direction made o survey on the 15th doy of June 2007, for the location of Marathon 011 Company, Bottom Hole Location x'696 -18C-23 as shown on the obove Section Mop as located within the S/2NE/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum bosed on NAV() 88 NOS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on July 20, 1914. JOB NO. 26099 08/2%7 CED PAD 696—IBC PLAATS.dw9 LOCA GPS COOP OF 2.3 ON 06/75/07 DAMO EVENTS Nate SURFACE USC' (MAIM SCRUB OAK AND NATURAL GROUND 696-18C-23 SHEET 2 OF 2 --SEAL,. EXHIBIT "B7" WILLI % M H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 96 W PLAT FOR SURFACE HOLE LOCATION LEGEND ® FOUND MO SURVEY MARKER p EN MONUMT NOT FOUND OR srma,-. REC. EASE 78.81 ch a El. 8203.7 GROUND MARATHON OIL COMPANY WELL 1696-18C--25 Lot. 39.5197 NAD 83 Long.108.15$49' __ Lat. 39.5197A((' Long.108.15586. I NAD 27 I tri N - I S I -I pp N I. Locnnak 69.-18C-23 CALL N o1.38W" CAW. 479.8 REC. NORTH REC. 7.2e oA CALL. S 8843'42" E 2661.0 REC. EAST 40.00 ch RO HOU ANON_ 68Q -18C-25 LOT 1 LOT 2 LOT 3 LOT 4 CALC, S 88"4342" E 2291.8 REC. EAST 34.45 ch 1, John 1. Dollnar of Green River, Wyoming hereby certify that in accordance with o request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056, 1 and or personnel under my direction made o survey on the 15th day of June 2007, for the location and elevation of Marathon 011 Company, Well #696-18C-25 as shown on the above Section Mop os located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground 8203.7 feet. Datum based on Colorado State Plane Coordinate System Centra! Zone NAD 83. Vertical Datum based on NAYD 88 NGS Triangulation Station SHALE. Note: Basle of bearings are relative on grid, based from GPS position in project area, NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on July 20, 1914, JOB NO. 26099 06/20/07 CEO PAD 696-18C PLATS.dwg LETCA CFS COOP OF 2.3 ON 0e/11/07 IMry1oVELeENM NOW SURFACE USE GRALNC: SCRUB OAR AND NATURAL GROUND 696-18C-25 SHEET 1 of 2 550 EAST 2ND NORTH PH. 307-875--3638 FAX. 307-875-3640 rn t -SEAL-. WILLIAM H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 96 W PLAT FOR BOTTOM HOLE LOCATION LUCID ik ® FAU CLo SURVEY RKER 0 MONUMENT NO r FOUND OR SEARCHED u REC. EAS' 78.81 ch MARATHON O/L COMPANY BHL #696-18C-25 Lat. 39.51886 ' NAD 83 - Long; 108.15236' - - ',.. Lat. 39.518819' NAD 27 Long. 108.15 fj 72' I I wtt1. LOCApok 698-'t8C-285 N 1 R NHOLE}O L — .. t Al10AL_ 6 18C-29 ' J C.U.C. N 0l'36'2!i' CALC. 479.0 REC. NOM REC. 7.20 al CALC, S 88'43'42" E 2661.0 REC. EAST 40.00 ch LOT 1 LOT 2 LOT 3 i 550 EAST 2ND NOM PH. 307-875-3638 FAX. 307--875-3640 LOT4 1 8 CALC. S 88'43'42" E 2291.8 ti REC. EAST 34.45 ch 1, John 1. Dolinor of Green River, Wyoming hereby certify thot in accordance with a request from Frank Krogh for Marathon Olt Company, 5555 San Felipe, Houston, TX 77056. I and or personnel under my direction mode a survey on the 15th day of June 2007, for the locution of Marathon 011 Company, Bottom Hole Location 1696-18C--25 as shown on the above Section Map as located within the N/2SE/.SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone MAD 83, Vertical Datum based on NAV() 88 NGS Trlangufation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In project area, NOTE: Record bearings as shown ore based on the Generol Land Office survey, ae approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 696-18C PLATS.dwg LE1CA CPS COOP OF 2.3 ON 08/18/07 I M ROVEM EN & NONE SURFACE' USE: CAA23M SCRUB OAK AND NA WRAL GROUND 698-18C-25 SHEET 2 of 2 �S£AL� EXHIBIT "B8" WILLI M H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T 6 S R96 W PLAT FOR SURFACE HOLE LOCATION P.O. BOX 820 GREEN RIVER. WYOMING 82935 LEGEND AIERow SURVEY — MONUMENT on SEARCHED NOT fOaND REC. EAS 78.81 ch 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 307-875-3640 MARATHON 011. COMPANY WELL #696— 8C-27 Lat. 39.5196' L J NAD 83 ng. 108.f5 49 '- Lot. 39.51971' NAD 27 Lang.108.15586' E7. 8203.1 d,ROUND ro w N 0 CALC. H Oi'30'88" CALC 479.0 REC. HORTH REC. 7.20 n), CALC. 5 88'43'42* E 2661.0 REC. EAST 40.00 ch CALC. S 88'43'42' E 2291.8 REC. EAST 34.45 ch I, John 1. Dollnar of Green River, Wyoming hereby certify thot in accordance with o request from Frank Krugh for Marathon 011 Company. 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the 15th day of June 2007, for the location and elevation of Marathon Oil Company, Well #696-18C-27 as shown on the above Section Mop as located within the SE/4NW/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground — 8203.1 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAV!) 88 NGS Triangulation Station SHALE. Note: 80919 of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings os shown are based on the General Land Office survey, os approved on July 20, 1914. JOB NO. 26099 06/20/07 CED PAD 696-18C PLATS.dwg !FICA CAS COOP Of 2.3 ON 68/15/07 MIPROVEMEIM NONE SU REACS USE GRAZt l SCRwo ON( ANO NATURAL GROOM) ) 696-18C-27 SHEET 1 of 2 6 tow -SEAL WILLIAM H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 r s S R 96 W PLAT FOR BOTTOM HOLE LOCATION A y LEGEND ® FOUND CLO SURVEY MARKER O MONUMENT NOT FOUND OR SEARCHED REC. EAS 78.81 ch MARATHON OIL COMPANY BHL 1696-1$C--27 Lat.39.51711,' NAD 83 — Co • 108, t5z35 Lat. 39'51714.NAD NAD 27 Long. 108.15171' WLL LOCATI B96 -18C-27 - T \44.' \ 8OTTOM HOLE . LOCATION -6r-18C-27 55O EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 CALC. N OPRP21i' CALL 479.1 REC. NORTH REC. 7.21 ch CALC. S 88'43'42" E 2661.0 REC. EAST 40.00 ch CALC. S 8843'42' E 2291.8 REC. EAST 34.45 ch 1, John 1. Dalinar of Green River, Wyoming hereby certify that in accordance with o request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 15th day of June 2007, for the location of Marathon 011 Compony, Bottom Hole Location 1696-18C-27 as shown on the above Section Map as located within the S/2SE/4SW/4 of Section 18, T 6 S, R 96 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NA!'D 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in protect area NOTF: Record bearings os shown are based on the General Land Office survey, os approved on July 20, 1914. JOB N0. 26099 06/20/07 CED PAD 696-18C PLATS.dwg LETCA CPS COOP or 2.3 ON OD/WV iMPROVEMfNTS NONE SURRACE USE: ORADNS SCRUB OAK AND NATURAL GROUND 696-18C-27 SHEET 2 of 2 "-SEAL". 1 I RN En EN NM E 1— NS 1 MN IN NM N r M N 1 P.O. BOX 820 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN R!YER, WYOMING 82935 MARATHON OIL COMPANY SURFACE HOLE LOCATIONS FOR PAD 696-18C Sear.: 1 "- 10' N 0136'23" E LA YDOi4N 550 EAST 2t40 NORTH PH. 307-875-3638 EXHIBIT "B9" 0 ®I 696-180-18 696-780-27 1896-18C-25 696-T06-23 • 83 AO 83 NAD 83 MAD 83 N 762512118 N 162573288 N 1625740.18 M 1625147.67 E 2250695.95 E 2250696.76 E 2250696.37 E 2256698556 M 625175.927 257175.92 M�62572341 17 1625730.91 N6262573847 E 725081594 E 7250856.75 E 7250836.36 E 1250656.57 JOB NO. 26099 06/20/07/CED PAD 696-18C\959-180 SHLDWG \_696-706.16 696-15C-14 896-180-12 696-16C-27 MAO 83 AD 83 `1Lt083 N 162516287 N 762517017 N 7625177.66 71MAD 83 15 E 2250597.00 E 2250697.21NAD27 NA= £7150697.42 E 2230697.63 N 625733.40 N 52518090 N 2516839 71 625175.89 £ 125085&99 6 1250657.20 E 1250657.42 6 125083783 7.5• Coordinates based on Grid Colorado State Plane Coordinate System Central Zone NAD 83 and NAD 27 10.0' PREPARED FC1t MARATmoN Ca. COMPANY P.0. Bor 3728 Houston, IX 77253 ..Si Son F.77pe Hevaton, 7X 77056 LOCA77ON: SNL LOCATONS FOR PAD 896-180 77177171 THE SW/4 SEC77CN 18. T 6 S. R 96 W. 671 Px_ GARFIELO COUNTY. COLORADO EXHIBIT "B10" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R96 W P.O. BOX 820 GREEN RIVER, WYOMING 82933 BOTTOM HOLE LOCATIONS FOR PAD 696-18C SECTION 18, T6S, R96W t 3 660.0 896 -18C -1E N 1825785,36 NAD 9J E 2250344. 17 J I >'IJ 20704.7 6600 _______4/ E 1226 46 p5774. t9 I- 6b0,0 -o 73 m888-I6C-I4 PI N I825tf6.08 tNAD 33 n mel E 2250526.24) IfE 250686.24 j y w2,-____660.0 E 1825 36.81 NAD f7 ‘;)g 4, T n� 0 2 2 Ci 660.0 ---'^.} 698--28C-16 I vi ui i7 E 2250508.31 � NAD r3 824487.53NAD g7 660.0 E 1150668.34 4- 4 • 4625074-40 0?4 d0 E 2251883.35 N 826065.23 E 1252043 32 350 EAST 2ND NORTH PH, 307-875-3638 FAX. 307-875-3640 NAD ,27 F1i �633600 Sd7 9 NAD -l83 N 823426. 12� t)NAD (27 E 1252gad9--�-- �! m rh p� 18660.0 00. N 1 81 17968 2 7 u TT ifE"125iB52.6 �3 1252787.6irNAD '27560 f6 0.66000 y r- _22S871 NAD j83 N 824147,91 NAD X27 £ 1 660.0 - 696-18C-15 j( z51beta997 2ee M E 2250490.38 fN 1623867,51 L,A0 173 N 623858.25 2 E 1250050.38 NAD T7 i 660.0 MEAS. N 88'43'15" W 2661.0 REC. EAST 40.00 CM. 660.0 ----� Coordinates based on Grid Colorado State Plane Coordinate System Central Zone NAD 8.3 and NAD 27 JOB NO. 26099 06/20/07 CED PAD 698-I8C/696-180-BNL OPTION C.dwg MEAS. N 88.43'15" W 2291.8 REC. EAST ▪ 4.45 CH. PREPARED FOR: MARATHON OfL COMPANY P.O. Box 3128 Newton, TX 77253 5555 Son reap. Houston, TX 77056 LOCATION: OK FOR PAD 896-I8C WHIN THE SW/4 SECTION 16, T6S, R 97 W, 6114 P.M, OARfTELD COUNTY, COLORADO ax EXHIBIT "Cl" WILLI-91 H. SMITH & ASSOCIA)S P.C. SURVEYING CONSULTANTS MARATHON OIL COMPANY WELL 696-18C--18 P.0, BOX 820 GREEN RIVER, WYOMING B2935 Soap; 1"- 100' CONTOUR INTERVAL 2' IVERSIO DITC 550 EAST 2ND NORTH PH. 307-875--3638 rAx. 307-875-3610 //'.' SPOIL 'AREA 6 RESERVE PIT SIZE 209'X75'X 15' SLOPE .. 1:1 RESRI'E PIT CAPACITY 31,294 BBL, FULL 23,389 BBL, WOWING CAPACITY WRH 3' FREE BOARD JOB NO. 26099 06/2%7/GED PAD 696-18C/PAD696-18C.DWG TOPSOIL AREA i1 QUA?ITITIM OWES f.5: / TOTAL CUT •• 42271 DANK CUBIC YARDS TOTAL RLI - 31,685 BANK CUD1C YARDS W'SOIL AT B INCHES Of DEM .. 3,040 DANK CUBIC YARDS SPOIL - 8,942 BANK CUBIC YARDS DISTURBED AREA - I8-4,158 SEA f7, CW 877 ACRES -SEAL^. PREPARED FOS: MARATHON Olt COMPANY P.O. Box 3128 Houston, 7X 77253 5555 Sm POO. Novato), 7X 77058 LOCATION: WEU 898-180-18 830' Flit and 1463' f5L WCLL FALLS 114TH1N THE SW/4 sECAON 18, 76S, RAW, 6111 PAL. 0ARf7ELO COUNTY, CIX.ORADO SHEET 1 OF 4 1 1 f 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 P.O. BOX 820 EXHIBIT "C2" WILL M H. SMITH & ASSOCI ES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY 8200.0 8200.00 8200.00 PAD 696-18C 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 HORIZONTAL SCALE: 1"=-100 FEET VERTICAL SCALE: 1"= 40. 00 FEET JOB NO. 26099 06/20/07/0ED PAD 696-I8C/PAD696-18C.DWG 100 CUT/fTLL SLOPES: 1.5:1 QUANTITIES TOTAL CUT .. 42,271 BANK CUBIC YARDS TOTAL FILL — 31,685 TOPSOIL AT 8 INCHES OF DEPTH • YARDS 040 BANK CUBIC YARDS SPOIL .. 8,942 BANK CUBIC YARDS DISTURBED AREA 164,156 50. F7. 01? 3.77 ACRES 200 300 PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston, IX 77253 5555 Sm F64011 Houston, TX 77056 LOCATION: PAD 696-780 4417711N THE SW/4 SECTION 18. T66 R96W, 61H PM. GARFIELD COUNTY, COLORADO SHEET 2 Or' 4 FIN15 GRAM, 87 4,5• O�C�Q R j1 3+40 \PIT '1N e+",1 : EXISTING GROUND 1 •rt+ 1+90 PIT I•INISH GRADE. 8794.5" EXISTING �170� ND inn _ 000 .,.,. 0+00 _ 4`PI T i __/ HORIZONTAL SCALE: 1"=-100 FEET VERTICAL SCALE: 1"= 40. 00 FEET JOB NO. 26099 06/20/07/0ED PAD 696-I8C/PAD696-18C.DWG 100 CUT/fTLL SLOPES: 1.5:1 QUANTITIES TOTAL CUT .. 42,271 BANK CUBIC YARDS TOTAL FILL — 31,685 TOPSOIL AT 8 INCHES OF DEPTH • YARDS 040 BANK CUBIC YARDS SPOIL .. 8,942 BANK CUBIC YARDS DISTURBED AREA 164,156 50. F7. 01? 3.77 ACRES 200 300 PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston, IX 77253 5555 Sm F64011 Houston, TX 77056 LOCATION: PAD 696-780 4417711N THE SW/4 SECTION 18. T66 R96W, 61H PM. GARFIELD COUNTY, COLORADO SHEET 2 Or' 4 P.O. BOX 820 GREEN RIVER, WYOMING SooI.: 1 "= 80' EXHIBIT "C3" WHIM H. SMITH & ASSOCIPES P.C. SURVEYING CONSULTANTS 82935 MARATHON OIL COMPANY PAD 696-18C DIRECTION LAYOUT 75.0 345.0 t �. tre699996e--r188C.-- e11 N -at �• e, C- o T60-2 W ,„- 696480-2060123 \\\ �0�f RESERVE PIT SIZE 209' X 75' X 15' SLOPE - f:I RESERVE PIT CAPACITY 31,294 881s FULL 23,369 BBLs I.1 KING CAPACITY NMTN 3' FRE BOARD JOB NO. 26099 06/20/2007/CED PAD697-I8C/PAD697-18C DRILL DIRECIION.OWG \ CUT/nu. SLOPES: 1.5:1 OWNTTRES: TOTAL CUT . 42,271 DANK CUBIC YARDS TOTAL nu. + 31,685 BANK CUBIC YARDS TOPSOIL AT 6 INCITES OF DEPTH x• 3,040 BANK CUBIC YARDS CUBIC YARDS DI�STULRBED AREA 0,942 B164,t5e SO. FT. OR 3.77 ACRES 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 307-875-3640 PREPARED FOR: MARATHON OIL CO.PANY P.O. Box 3128 Houston, TX 77253 5555 Sar Follps Houston, TX 77056 LOCATION: PAD 698-18C IWTHIN THE SW/4 SECTION 18, ORI PM. BARRFIELD COUNTY COLORADO SHEET 3 OF 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 P.O, 8OX 820 EXIHIBIT "C4" WILLIAM H. SMITH & ASSOCIA ES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY PAD 696-18C FACILITIES LAYOUT Scnlra: 1 "= 80' MARATHON OIL COMPANY PAD 696-18C RESERVE PIT SIZE 209' X 75' X 15' SLOPE 1:1 R£SERW PIT CAPACITY 31,294 BBLa FULL 23,369 88La WORKING CAPACITY WITH 3' FREE BOARD JOB NO. 26099 06/20/2007/GED PAD69—18C/PAD696-18C FAC!LITIES.OWG CUT/TILL SLOPES 7.5:1 QUANTITIES TOTAL CUT . 42,271 BANK CUBIC YARDS TOTAL RLL. - 31,685 BANK CUBIC YARDS TOPSOIL AT 6 INCHES OF DEPTH - 3,040 BANK CUBIC YARDS SPOIL - 8,942 BANK CUBIC YARDS DISTURBED AREA - 164,156 SO. PT. OR 3.77 ACRES .550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston, TX 77253 5555 Son Felipe Houston, TX 77056 LOCATION: PAD 696-18C IW D6N THE SW/4 SECTION 18, TOS, R96W, GARFIEID COUT iNiTY,MCOLORADO SHEET 4 OF 4 EXHIBIT "DI" �}r T6S Sols; TfiS Ott 3 CADS GI�LCH ' 1,ry: ROAD..1' ED RO,44;; U —1g ,., T6S *IOW fiQ 0 • JONI •.T7S; ` 449g ,:�• - e:>tl:• :yam J ry,, :...00..lyir•T -149 7 rL• I f '� • T63 T7S TeS;? ' e'- 9, 775• • t• Tr PARACHUT / DRAM BY: CED } 4)1 45y- P�� DE REQUE WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 550 SAS? SECOND NORTH PBONL 307-875-35.95 ORM RIVER MY 507-675--30,99 *tvmtthpo.com JOB N0: 26099 l DATE: 06/20/07 PAD NUMBER 696-18C LOCATED IN THE SW/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. SCALE: I'-2 MILES 111 M ARATHON 011. COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE TOPO MAP Al EXHIBIT "D2" .r; Si :r t, •'1,1rr • TB T8S Ario61 GOC1t' n V i✓� i• 2�! if • DRAWN BY: CED WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 66O EAST SECOND ROR777 MOAT 307-870-3898 307-878-363Q GREEN RflZ1e WY win& *iLmlwpc.com I J09 NO: 26099 PAD NUMBER 696-18C LOCATED IN THE SW/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. 1 DATE: 06/20/07 1 SCALE: 1' = 1 MILE VIC NI MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 770,56 TOPO MAP A2 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P,O. 80X 820 T 6 S R 96 W GREEN RIVER, WYOMING 82935 PLAT FOR PROPOSED SECTION 18 PLAN Of DEVELOPMENT MAP (D3) MEAS. N 8852:25" W 5222.1 REC. EAST ?8.81 CH. MARATHON at COMPANY PAD 696-18C MEAS. N 88'43'54' W 2697.2 REC. EAST 40.00 CH, J09 N0. 26099 01/04/08/CED SEC 18C PLAT REVISED.dWg MEAS. N 88.42'28" W 2255.6 REC. EAST 54.45 CH, 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 LEGEND • FOUND GLO SURVEY MARXER O MONUOR SfMENARCNET NDOT FOUND EXISTING ROAD PROPOSED WATER AND GA5 LINES TDOSING PIPELINE PROPOSED PIPELINE "T" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS ORM WY mom PROM 507-976-9680 307-9m-3059 wing wdsmRDpc. cam PAD NUMBER 696-18C LOCATED IN THE SW/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. IC NI A ARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE ACCESS ROAD EXHIBIT"D4" ACCESS ROAD NW CORNER OF PAD LOOKING SOUTHEASTERLY ACCESS ROAD— \ill( NE CORNER OF PAD LOOKING SOUTHWESTERLY ACCESS ROAD—it SW CORNER OF PAD LOOKING NORTHEASTERLY WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 560 1.137 sTCOND NORTH FROM 307-876-98se ORM WVRT4 IR' soy—am—sero wpm •W.mJenpo.00m DRAWN BY. CED 1 JOB N0: 26099 1 OA TE: 06/20/07 SE CORNER OF PAD LOOKING NORTHWESTERLY PAD NUMBER 696-I8C LOCATED IN THE SW/4, SECTION 18, TOWNSHIP 6 SOUTH, RANGE 96 WEST. SCALE N. E.S. PHOTOS FOR MARATHON OIL COMPANY P.D. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 77056 PHOTO B1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Re: Well Name: NOTICE R1;QUIRiMENTS (RULE 305) Revised June 13, 2007 Pad #697-13C Wells Included on this Pad #697-13C-12 #697-13C-14 #697-13C-16 1/697-13C-18 11697-13C-21 #697-13C-23 #697-13C-25 11697-13C-27 In accordance with the Colorado Oil and Gas Conservation Commission for Notices of Oil and Gas Operations, Rule 303, the following information is required to be provided: • Operations on the Pad I/697 -13C are estimated to commence on 6-15-2007 Well Name Date • The Operator will be: Marathon Oil Company Operator 5555 San Felipe Address 1{ouston, TX 77056 City State Zip Code • If you have any questions regarding this notice, you may contact: Prank Krugh at (713)2.96-3546 Representative Phone No, • The legal description of the surface lands upon which operations will be conducted are: NE -- SW —4 See. 13 Twp. 6S Rag. 97W Pith P.M. Garfield County, Colorado. County • The surface owner has the responsibility for notifying any affected tenant of the proposed operations. • Included with this letter is a return addressed, postage prepaid postcard upon which you may request your preference with respect to consultation requirements wider Rule 306. • A brochure describing surface owner rights is available upon request from: Colorado Oil and Gas Conservation Commission 1120 Lincoln Street Suite 801 Denver, CO 80203 13y signing below, the surface owner waives the above notification requirements of Rule 305. (List below any Rule 305 notice requirements excluded from this waiver) Surface Owner Signature • Dale SURFACE DAMAGE AGREEMENT 93rolTHIS SURFACE DAMAGE AGREEMENT (Agreement) is made and entered into this day of April, 2007, between Chevron Shale Oil Company, a division of Chevron U.S.A. Inc, a Pennsylvania corporation, with offices at 11111 S. Wilcrest Dr., Houston, Texas 77099, (SURFACE OWNER) and Marathon Oil Company, an Ohio corporation, with offices at 5555 San Felipe Road, Houston, TX 77056, (OPERATOR). I OPERATOR desires to conduct operations for drilling the wells listed on Exhibit "A" upon lands owned by the SURFACE OWNER. Each well listed on said Exhibit "A" has a plat attached hereto as a part of Exhibits "B 1-1322". SURFACE OWNER and OPERATOR have reviewed the proposed locations and operations and enter into this Agreement to allow OPERATOR to use SURFACE OWNER's surface to: 1. Drill, operate and maintain the wells listed on Exhibit "A" at their specified locations 2. Build pad locations for the wells to the specifications as detailed in Exhibits "C 1-C4" 3. Install new pipelines or build new roads as specified in Exhibits "D I -D5" OPERATOR's right to conduct the operations referred to above on the surface lands of SURFACE OWNER which are subject to this Agreement (Subject Area) are subject to the following terns and conditions. A. This Agreement is made subject to all existing agreements, whether of record or not, affecting the surface or subsurface of the Subject Area, including, but not limited to, rights- of-way, licenses, leases and other agreements. SURFACE OWNER specifically reserves the right to grant other agreements to third parties to cross over or under the Subject Area. OPERATOR is responsible for obtaining any necessary third party consents prior to conducting activities on the Subject Area. The rights of OPERATOR to conduct operations and maintain facilities as set forth herein on SURFACE OWNER'S property are subject to that certain Oil and Gas Lease dated November 15, 2002 (O&G Lease) between the parties. OPERATOR'S rights are limited to those necessary to conduct operations under the O&G Lease and such rights will expire when and to the extent such facilities are no longer utilized in support of operations in fiirtherance of the 0&G Lease. No rights granted herein by SURFACE OWNER will survive the termination of the O&G lease. 1 B. SURFACE OWNER makes no warranties or representations concerning the title to the Subject Area. C. OPERATOR agrees to maintain and operate on the Subject Area in such manner that the operation thereof will in no way hinder or prevent the use and enjoyment of SURFACE OWNER's adjoining property, including use thereof for exploration, mining, oil shale development, oil and gas development, fanning, ranching and land development. D. OPERATOR shall have no right to locate any additional surface installation, other than those indicated on the attached Exhibits, on any part of the Subject Area without the prior written approval of SURFACE OWNER, which approval is separate from and in addition to any rights granted in this Agreement. Notwithstanding any other provision of this Agreement, OPERATOR shall have no right to place any equipment on any location or otherwise make use of said location to benefit any well other than those listed on Exhibit "A". E. OPERATOR agrees to remove top -soil from the Subject Area separately from other material removed by OPERATOR in connection with its activities on the Subject Area, and to replace such topsoil on completion of any such activity. OPERATOR further agrees to insure that the Subject Area shall be left free of any large stones, holes, or piles of dirt which would interfere with farming, ranching and/or other operations thereon. All stones, brush and debris uncovered on, removed from or deposited on SURFACE OWNER's lands as the result of activities permitted hereunder shall be disposed of at SURFACE OWNER's direction. Except as 1 1 • otherwise provided herein, all areas disturbed as the result of activities permitted hereunder, within three months of any construction completion shall be reclaimed to original condition or as near thereto as practicable, which shall include reseeding with seed mixes approved by SURFACE OWNER. OPERATOR shall continue to reseed and cultivate until successfully reestablishing self sustaining vegetation. Reseeded areas shall be properly mulched except in pastures and hay fields. OPERATOR shall spray all areas affected by construction to control noxious weeds for a period of no less than three growing seasons following any building, installing, constructions or other activity allowed under this Agreement. F. OPERATOR agrees to replace or rebuild, to the satisfaction of SURFACE OWNER, any and all parts of any road or any drainage or irrigation system or other improvement that may be damaged in connection with OPERATOR's activities conducted pursuant to this Agreement, Upon completion of any construction, replacement, substitution, relocation, or removal activities permitted hereunder, OPERATOR shall grade all permanent roads on SURFACE OWNER's lands which were used in connection with said activities. G. OPERATOR shall bury its pipeline and subsurface facilities to provide a minimum of thirty-six (36) inches between the top of the pipeline and facilities and the ground level except in those areas where rock is encountered that would otherwise require blasting, in which case, the facilities shall be buried a minimum of eighteen (18) inches below the ground surface. H. Except as otherwise provided herein, OPERATOR shall properly backfill and compact disturbed ground, excavated pipeline trenches, and other excavations in connection with its activities on the Subject Area. Compaction of disturbed areas in hay fields and pastures shall be accomplished using hydro -compaction methods followed by replacement of topsoil, free of stones and other debris. Immediately upon completion of any activity performed under this Agreement, OPERATOR shall repair damage 10 open irrigation and drainage ditches by using proper mechanical ditch channel compaction methods and by reestablishing pre -disturbance grades and tlowlines. If OPERATOR's activities hereunder cause damage to lands not covered by this Agreement, in addition to any compensation required elsewhere in this Agreement, OPERATOR shall further compensate SURFACE OWNER for any and all losses caused by OPERATOR on said additional lands, Said damage payments shall be made either to SURFACE OWNER or its surface lessee, as directed by SURFACE OWNER at the time of the payment. All culverts and buried irrigation system pipelines damaged by the activities permitted hereunder shall be replaced by OPERATOR immediately upon completion of the activity. I. OPERATOR shall work in cooperation with SURFACE OWNER's Ranch Manager to coordinate all activities permitted hereunder. Prior to beginning any work allowed hereunder, OPERATOR shall contact and meet with SURFACE OWNER's Ranch Manager and Agricultural Lessee in attempt to minimize disruption and damages to land, irrigation systems, crops, grazing land, livestock, pasture, and other agricultural and grazing equipment and lands. J. OPERATOR shall have the ongoing responsibility of assuring that irrigation systems damaged by the activities permitted hereunder are restored to their proper operating condition and that areas of settling and slumping on SURFACE OWNER's surface, caused by the activities permitted hereunder, are permanently restored to field grade. K. OPERATOR shall maintain current as -built drawings for the Subject Area and all of its surface and subsurface facilities located within the Subject Area and shall provide SURFACE OWNER with copies of such drawings each time they are updated. L. OPERATOR shall take all necessary precautions, in conducting its activities under this Agreement, to prevent brush and grass fires. M. OPERATOR shall ensure all fresh water used on Chevron's surface must come from a legal supply of water. 2 N. The northeast pad corner is very close to a steep slope. Excess material associated with building the pad must not be allowed to slough over that slope as it would damage plant growth and soil stability below. O. Water bars trust be placed on the access road to help prevent erosion. Sediment containment measures shall also be placed at the toe of the fill slopes. Erosion control measures such as waddles, shall be placed as necessary on small horizontal benches constructed across the fill slopes. • - P. As this pad is located a short distance above the Bumgardner lease cabin, extra attention must be given to watershed issues, making sure runoff is not channeled to existing access road, cabin, or other facilities. This area is used by livestock and steps should be taken to ensure protection of same. Q. No trespass will be allowed in the cabin site area. A gate shall be placed across the road approximately 100 feet south of the southwest corner of the pad to ensure same. 1 R. A gate shall be placed approximately 100 feet west of the intersection of the currently existing two track road and the newly constructed access road to prevent use of the two track road beyond the approved route. A sign shall be placed at the entrance of the two track road that will not be used for the Marathon 697-13C Pad and shall read, "No Industrial Access" S. There are live springs in the area adjacent to cabin site. This water must not be used for drilling or completion purposes. The springs must be sampled for a baseline quality prior to drilling and 6 months post drilling to assure the springs remain unaffected. T. OPERATOR shall pay to SURFACE OWNER a damage payment in the amount of two thousand five hundred dollars ($2500) upon execution of this agreement. U. All activities permitted under this Agreement shall be performed and conducted in a careful, safe, and workmanlike manner, and in such manner as will not interfere with SURFACE OWNER's and SURFACE OWNER's lessees', licensees', and permitees' exploration, mining, oil shale, oil and gas, farming, ranching, land development and/or other operations on other lands in the vicinity of the Subject Area, V. All activities permitted pursuant to this Agreement shall be performed by or under the direction of OPERATOR, and OPERATOR shall not permit, unless otherwise authorized by SURFACE OWNER, public facilities or public roads over or under the Subject Area, W. OPERATOR shall keep the Subject Area and associated facilities in a good and safe condition and, after doing any work which disturbs the surface of the Subject Area, OPERATOR shall restore the surface of the Subject Area to as good a condition as existed prior to such work. X. Prior to exercising any rights granted hereunder, OPERATOR shall give notice of OPERATOR's planned construction activities to SURFACE OWNER's Ranch Manager and all persons holding any rights, licenses, permits or leases to use the surface of the Subject Area and lands used for access thereto. Y. No director, employee, or agent of either party will give to or receive from any director, employee, or agent of the other party any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. During the term of this Agreement and for 2 years, thereafter, any mutually agreeable representatives authorized by either party may audit the applicable records of the other party solely for the purpose of' determining whether there has been compliance with this paragraph. The provisions of this paragraph will survive termination of this Agreement. EXHIBIT "BI" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W PLAT FOR SURFACE HOLE LOCATION P.O. BOX 820 GREEN RIVER, WYOMING 82935 kip 0 1i hi LEGEND ram • ARKERa.o 5U'RY£v 0 MONUMENT NOT FOUND DR SEARCHED ----- ROADS REC N 89'42'00" REC N 89'42'00" W 550 EAST 2ND NORTH PH, 307-875-3638 PAX. 307-875-3640 MM WELL ,ARATHON697-13C-1201LCOPANY Lal. 39.51902' J NAD 83 Long. 108.17269' Lal. 39.51905' NAD 27 Long. 108.17205' El. 8349.7 GROUND 6 REC N 89'45`00 lit 39.93 CH. MEAS. N 88'02'07 W 2637.6 39.93 CH. 1, John 1. Dolinor of Green River, Wyoming hereby certify that in accordance with a request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the 8th day of November 2006, for the location and elevation of Marathon Oil Company, Well 1697-13C-12 os shown on the above Section Map as located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground = 8349.7 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83, Vertical Datum based on NA VD 88 NGS Triangulation Station SHALE, Note: Basis of bearings are relative on grid, based from GPS position in protect area. NOTE: Record bearings os shown are based on the General Land Office survey, as approved on February 24, 1921. 308 NO. 26099 06/05/2007/WND PAD 697-1 C/PA0697-73C PLATS WE1CA GPS COOP of 2.5 ON ISM/200d tilPROw 1e,v$ ROAD SUWAC£ USE: CRAZING SCRUB OAK AND NATURAL GROUND 697-13C-12 SHEET 1 of 2 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W PLAT FOR BOTTOM HOLE LOCATION P.O. BOX 820 GREEN RIVER, WYOMING 82935 0 SII A A ran) GLO SURVEY MARKER p DRMG SE ARCHED FOUND - R0.4DS pP Q 6 Q v REC N 89'42'00" W 39.92 CH, MARATHON OIL COMPANY 91 -IL 697-13C-12 Lat.39.52152' 1 NAD 83 Long.108,17 73' Lat. 39.52154'! NAD 27 Long. 108.17510' 660 Fps BOTTOM HOLE °CATION 6P7-I3C-12 NEL} LOG DON 897.-1x-12 REC N 8945'00 {W 39.93 CH. MEAS. N 88'02'07 W 2637.6 bsj, 13-. REC N 8942'00' W 39.92 CH. REC. N 89'45'00` W 39.93 CH. 1, John 1. Dollnor of Green River, Wyoming hereby certify that 1n accordance with a request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the Bth day of November 2006, for the location of Morothon 011 Company, Pad 1697-13C, Bottom Hole Location 697-13C-12 site as shown on the above Section Mop as located within the N/2NW/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garffefd County, State of Colorado. Datum based on Colorado State Plane Coordinate System Control Zone NAD 83. Vertical Datum based on MAIO 88 NGS Triangulation Station SHALE, Note: Basis of bearings are relative on grid, based from GPS position 1n protect area. NOTE: Record bearings os shown are based on the General Land Office survey, os approved on February 24, 1921. JOB NO. 26099 06/05/2007/WHO PAD 697-13C/PAD697-13C PLATS LETOA CPS coop or 25 ON if/Oe/2006 IMPROw£MENTS• ROAD SURFACE USE: GRAZ,N4. Sarue OAK AND NATURAL GROUND 697-13C--12 SHEET 2 of 2 550 EAST 2ND NORTH PH. 307-675-3636 FAX. 307-875-3640 6 8 P.O. Sox 820 GREEN RIVER, WYOMING RRI 8 6 ® FOUND 61.0 SURVEY ARialt "'ORR S ARCHED FOUND ROADS EXHIBIT "B2" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 T 6 S R 97 W A $g PLAT FOR SURFACE HOLE LOCATION REC N 89'42'00" 39.92 CH. MARATHON OlL COMPANY WELL #697-13C-14 Lal. 39.51897' >? NAD 83 Long. 108.17273' Lat. 39.51899'NAD 27 Long. 108.17209' El. 8349.7GROUND ROTn>NG H1X£ MON 1597-13C-1,4 RELI. LOCAnav a97rrx-t4 MEAS. N 88 0 07 it W 26 37 6 1 3, REC N 89'42'00" W 39.92 CH. REC. N 89'45'00" 39.93 CH. 1, John 1. Dollnar of Green River, Wyoming hereby certify thot in accordance with a request from Fronk Krugh for Marathon Oil Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the 8th day of November 2006, for the location and elevation of Marathon 011 Company, Well /697-13C-14 09 shown on the above Section Mop os located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevotlon of ungraded ground = 8349.7 feet. Datum based on Colorado State Plane Coordinate System Central lone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, based from GPS position in protect area. NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on February 24, 1921. JOB 140. 26099 06/05/2007/W14D PAD 697-13C/PAD697—f3C PLATS iEOCA GPS COOP OE 25 ON 11/00/2008 IMPROVEMENTS' ROAD SURFACE USE GRAM* SCRIM OAx AND NARMAI. GROUND 697-13C-14 SHEET 1 of 2 550 EAST 2ND NORTH PH, 307-875-3638 FAX. 307-875-3640 6 tal g vi —SEAL-. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.D. sax 820 T 6 S R 97 W GREEN RIVER, WYOMING 82935 ill 1 tk LECEND 0 FOUND a.0 SURVEY MARKER O OR SEARCIT }ENOOT FOUND - ROADS 8$ v PLAT FOR BOTTOM HOLE LOCATION REC N 89'42'00" 39.92 CH. MARATHON OIL COMPANY BHL 697-13C--14 L°"9.51 976. 1 NAD 83 Long. 108, 77573' Lot. 39.51979' ¢NAD 27 Long. f 08.17510' BO HOU* OCARON 097-1JO-f4 zo uiz `Y U 3aW. NE1.1. LOCA TION 097-1JC-14 cos ko,, REC N 8942'00" W 39.92 CH. REC N 89'45'00 REC• N 89'45'00 W MEAS. N 88'02'07 W 2637 6 39.93 CH. 1, John L Connor of Green River, Wyoming hereby certify that In accordance with o request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made o survey on the 8th day of November 2006, for the location of Marathon Oil Company, Pod /697-130, Bottom Hole Location 697-13C-14 site os shown on the above Section Mop as located within the S/2NW/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVE) 88 NOS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project ores. NOTE: Record bearings as shown are based on the General Land Office survey, os approved on February 24, 1921. JOS NO. 26099 06/05/2007/WHO PAD 697—I3C/PAD697-13C PLATS LEC LIPS COOL' OF 25 ON 11/00/2000 IMPROVEMENTS; ROAD swA0E USE GRAZNC: SCRUB ONE ANO NARRAL CROWD 697-13C-14 SHEET 2 of 2 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 6 EXHIBIT "B3,e WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W PLAT FOR SURFACE HOLE LOCATION P, 0. BDX 820 GREEN RIVER, WYOMING 82935 0 ei1 LEGEND ® FOUND DLO Stf2VEY MARKER O MONu4ENT NOT Ferrero OR SEARCHED ROADS M 00 OtS z$ K w, b g $ MARATHON OIL COMPANY • WELL #697-13C-16 • Lat. 39.51895' NAD 83 REC N 89'42'00" 39.92 CH. Long. 108.17274' Lot. 39.51897' / NAD 27 Long. 108.17210' E1. 8349.7 GROUND HR LOCATION 8D -T30-M 7-I3c re REC N 89'4,500 W 39.93 CH. MEAS, N 88'02'07' W 2637.6 REC N 89'42'00' 39.92 CH. REC. N 89'45'00" W 39.93 CH, 1, John I. Dollner of Green River, Wyoming hereby certify that In accordonce with o request from Fronk Krugh for Morothon 011 Company, 5555 Son Felipe, Houston, TX 77056. I and or personnel under my direction made o survey on the 8th day of November 2006, for the location and elevation of Marathon 011 Company, Well #697--1JC-16 os shown on the above Section Map as located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground 8349.7 feat, Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAW 88 NOS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In project area. NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on February 24, 1921. JOB NO. 26099 06/05/2007/WHO PAD 697-13C/PAD697-$3C PL4TS LEtCA OPS ODOP OF 2.5 ON 11/08/200,8 31PROWEAMY S ROAD St,9FAOE USE: GRAM& SRVs OAK AND NARJAAL CROWD 697-13C-16 SHEET 1 OF 2 550 EAST 2ND NORTH P14. 307-475-3639 FAX. 307-875-3640 cc N LAJ CJ x t3 No, 18979 ass f 6/y a/i �/n'f4l �, P.O. BOX 820 GREEN RIVER, WYOMING A k b iut LEGEND ® FOUND G.O SURVEY MARKER "'MO SMS T FOUND ROADS WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 T 6 S R 97 W PLAT FOR BOTTOM HOLE LOCATION REC N 89'42'00' W REC N 89'42'00" W 550 EAST 2N0 NORTH PH, 307-875-363a FAX. 307-875-3640 p MARATHON OIL COMPANY DHL 697-13C-16 Lat.39.51801' 1 NAD 83 Long. 108.17573' Lat.39.51803' } NAD 27 Long. 108.17510' 6 REC N 89'4500" W 39.93 CH. MEAS. N 88'02'07" W 2637.8 39.93 CH. 1, John 1. Dollnar of Green River, Wyoming hereby certify thot in accordance with a request from Fronk Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 8th day of November 2006, for the location of Marathon 011 Company, Pad j697 -13C, Bottom Hole Location 697-13C-16 site as shown on the above Section Map as located within the N/2SW/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, Stote of Colorado. Datum bused on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum basad on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relotive on grid, bused from GPS position In project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on Februory 24, 1921. J09 NO. 28099 06/05/2007/WHD PAA 697-13C/PA0697-13C PLATS WCA CPS Coop OF 2.5 ON t1/O11/2006 IMPROVEMENTS: ROAD SURFACE USE: CRAZPla SCRUB OAK AND NA 1URAL GROUND 697-13C-16 SHEET 2 of 2 P.O. BOX 820 GREEN RIVER, WYOMING t'r 1 L.ECENO ® FOUND CLO SURVEY MARMFR r' MONUMENT NOT F O NFO OR SEARp*U ROADS O p P 2 EXHIBIT "B4" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 T 6 S R 97 W PLAT FOR SURFACE HOLE LOCATION REC N 89'42'00" W 39.92 CH. 6 MARATHON OIL COMPANY WELL 1897-13C-18 Lat. 39.51891' 1 NAD 83 Long. 108.17276' Lat. 39.51894' ! NAD 27 Long. 108.17213' El. 8349.9 GROUND 14De PAL sorrow HOLE tOCAnoN FSL 6Sj�9� ~.1 3 1,514 LOCATION 697-13C-16 REC N 89'45'00" W 39.93 CH. MEAS. N 88'02'07" W 2637.6 REC N 89'42'00' W 39.92 CH. REC, N 89'45'00' W 39.93 CH. 1, John I. Dollnar of Green River, Wyoming hereby certify that In accordance with o request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. I and or personnel under my direction made a survey on the Bth day of November 2006, for the location and elevation of Marathon 0!! Company, Weil #697-13C-18 as shown on the above Section Mop as located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground a 6349.9 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAW 88 NGS Triangulotlon Station SHALE, Note: Basis of bearings are relative on grid, bosed from GPS position in project area. NOTE: Record bearings as shown ore based on the General Land Office survey, as approved on February 24, 1921. JOB NO. 28099 06/05/2007/WHD PAD 697-13C/PAD697-13C PLATS LOCA GPS COOP OF 2s ON 11/04/2006 WPROWiJENtS ROAD SURFACE USE CRAZ1Na SaNm OAR AND NATURAL GROUND 697-1JC-18 SHEET 1 of 2 550 EAST 2ND NORTH PH, 347-8753638 FAX. 307-875-3640 6 rrO z vi U to N WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T65 R97W P.O. BOX 820 GREEN RIVER, WYOMING 82935 LEGEND O FOUND M O SUR1£Y O MOA'UMENT NOT MUNI) OR SEARCHED ROADS 9 U PLAT FOR BOTTOM HOLE LOCATION REC N 89'42'00" W 39.92 CH. oMARATHON OIL COMPANY OHL 697-13C-18 Lat. 39.51625 f NAD 83 Long.108.17573' Lat.39.51628' I NAD 27 Long. 108.17509' t498 E LO EON MEAS N985' 07 W92637 6 REC N 89'42'00" W J9.92 CH, REC, N .69'45'00' W 39.93 CH. 1, John I. Dolinar of Green River, Wyoming hereby certify that in accordance with a request from Fronk Krugh for Marathon Oil Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the 8th day of November 2006, for the location of Marathon Oil Company, Pod #697—t3C, Bottom Hole Location 697-13C-18 site as shown on the above Section Map as located within the S/2SW/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on February 24, 1921. J08 NO. 26099 06/05/2007/WHD PAD 697-13C/PAD697-13C PLATS LUC1 OPS COOP OF 25 ON 11/0e/2008 nONADAMENTS ROAD SURFACE USE GRAIN& SOfU6 OAN ANO NATURAL GROUND 697-13C-18 SHEET 2 of 2 550 EAST 2ND NORTH PH, 307-875-3638 FAX 307-875-3640 4i EXHIBIT "B5" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 9 7 W GREEN R VER, WYOMING 82935 Rif -8! 44 REC N 89'42'00- W PLAT FOR SURFACE HOLE LOCATION LEGEND • FOC&' J GLo SURVEY' MARKER MONUAtrNT Nor roma OR SEARCHED — ROADS 39.92 CH. REC N 89'42'00 W 39.92 CH. oMARATHON OIL COMPANY WELL /697-13C-21 Lat. 39.51904' NAD 83 Long. 108.17268' Lot. 39.51907' / HAD 27 Long. 108.17204' E1. 8349.7 GROUND 7,5 4// WEL4 LOCA T8 / B977 LSO- so REC N 89'45'00 t 39.93 CH. MEAS. N 88'02'07 W 2637.6 eOTTOM HOtE 0CATiON 697-1.1O— 2? REC. N 89'45'00" W 39.93 CH. I, John L Dolinar of Green River, Wyoming hereby certify that In accordance with a request from Frank Krugh for Marathon Oil Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction made o survey on the 8th day of November 2006, for the location and elevation of Marathon 011 Company, Well 1697-13C-21 as shown on the above Section Map as located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground 8,349.7 feet. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In project area. NOTE: Record bearings as shown are based on the Genera! Land Office survey, a8 approved on February 24, 1921. JOB NO. 26099 06/05/2007/WHD PAD 697-13C/PA0697--130 PLATS WCA APS GDC' OF 2.5 ON ff/oe/200e IUPR0494ENTS ROAD SEWAGE USE: l$A2?N0 SCRUB OAK AHO !MURAL GROUND 697-13C-21 SHEET 1 of 2 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 W ui WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W P.O. BOX 820 GREEN RIVER, WYOMING 82935 LEGEND MAO GYO SURVEY MARKER Q MOTEMENT HOT FWNO ---- ROADS PLAT FOR BOTTOM HOLE LOCATION REC N 89'42'00" W 39.92 CH. $ o MARATHON OIL COMPANY OHL 697-13C-21 Lat. 39.5223$' I NAD 83 Long.108,1710r Lat.39.52240' I NAD 27 Long. 108.17044' REC N 89'42'00" W 39.92 CH. f•75 NEI!, 0001 697-t3C-2f z REC N 89'45'00 W 39.93 CH. MEAS. N 88'02'07" W 2637.6 BOTTOM HOLE OCATKW 697-130-21 REC. N 89'45'00" W 39.93 CH. 1, John 1. Dolinor of Green River, Wyoming hereby certify that In accordonoe with a request from Fronk Krugh for Marathon 011 Company, 555.5 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made o survey on the 8th doy of November 2006, for the Vocation of Marothon Oil Company, Pod ,9697-13C, Bottom Note Location 697-13C-21 site as shown on the above Section Mop as located within the N/2NE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordlnote System Central Zone NAD 83, Vertical Datum based on NAYD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Lond Office survey, as approved on February 24, 1921. JOB 140, 26099 06/05/2007/WHO PAD 697-13C/PAD697—,3C PLATS WC.4 GPS COOP OF 2.5 ON 11/06/2006 IMPROVEMENTS ROAD SURFANO NAATURA. wo SCRUB OAK 697 -13C -2t SHEET 2 of 2 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 it z$ g P.O. BOX 820 GREEN RIVER. WYOMING 111 J.> L ECENO ® FOUND G.0 SURVEY MARKER (J OR R SEARCHED row ROADS 8S EXHIBIT "B6" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 T6S R97W PLAT FOR SURFACE HOLE LOCATION REC N 89'42'00* 39.92 CH. MARATHON OIL COMPANY WELL #697-13C-23 Lot. 39.51901' J NAD 83 Long. 108.17270' Lat. 39.51903' I NAD 27 Long. 108.17207' E1. 8349.7 GROUND 107d ebSl?g_, 1.3' BOTTOM HUE OCA 0011 697—IX-23 NELL LOCATION 6P7 -13C-'23 REC E As N 88'002 0Pe 7 W '2637 6' REC N 89'42'00" W 39.92 CH. 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 REC. N 89'45'00" W Ci 39.93 CH. 1, John 1. (Minor of Green River, Wyoming hereby certify that In accordance with o request from Fronk Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 8th day of November 2006, for the location and elevation of Marathon 011 Company, Well 1697-13C-23 as shown on the above Section Map os located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground = 8349.7 feet. Datum based on Colorado State Plane Coordlnote System Control Zone NAD 83. Vertical Datum bosed on NAV 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grld, based from CPS position In project area. NOTE: Record bearings or, shown are based on the General Land Office survey, os approved on February 24, 1921. JOB NO. 26099 06/05/2007/WHO PAD 697-13C/PA0697--13C PLATS LE1C/ GPS COOP OF 25 ON 11/06/2006 IMPROVEMENTS: ROAD SURFACE AND NATURALRGROUND c s OAK697-13C-23 SHEET 1 OF 2 6 a N N O LLJ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.D. BOX 820 T 6 S 1? 97 W GREEN RIVER, WYOMING 82935 k rr 14 ut LEGEND ®FDUAD GLo SURVEY MARKER O MONUMENT NOT FOUND OR SEARCRED ROADS PLAT FOR BOTTOM HOLE LOCATION REG N 89'42'00" W 39.92 CH. MARATHON OIL COMPANY 8HL 697-13C-23 Lat. 39.5206? J NAD 83 Long. 108.17107' Lai. 39.52065*1 NAD 27 Long. 108.17043' Ria • '~l `3•• Bottom HOLE ocA ROv 697-13C-23 WELL LOCATION 997-13C-23 REC N 89'4500 Vt 39.9J CH. MEAS. N 88'02'07 W 2637.6 REG' N 89'42'00" W 39.92 CH. REC. N 89'45'00" W 39.93 CH. 1, John 1. Dolinar of Green River, Wyoming hereby certify that In accordance with a request from Frank Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, IX 77056. 1 and or personnel under my direction made a survey on the 8th day of November 2006, for the location of Marathon 01, Compony, PAD ,11697—t3C, Bottom Hole Location 697-13C-23 site as shown on the above Section Map as focoted within the S/2NE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Merldlon, Garfield County, 5tote of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAV!) 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown are based on the General Land Office survey, as approved on February 24, 1921. J08 NO. 28099 06/05/2007/WHD PAD 697—t.0/PAD697-13C PLATS LEICA GPS COOP Or 25 co 11/0e/2008 IMPROVEMENTS: ROAD SURFACE USE:, GRAZING` SCRUB OAK AND NATURAL GROUND 697-13C-23 SHEET 2 of 2 550 EAST 2ND NORTH PH. 307'-$73-3538 FAX. 307-875-3640 o. 18979 LAA —.SEAL EXIHIBIT "B7" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W PLAT FOR SURFACE HOLE LOCATION P.O. BOX 820 GREEN RIVER, WYOMING 82935 u • nwrk) oto surer/ MARKER artr SEARNOT 0 T Fat/ND --- ROADS A REC N 89'42'00' 39.92 CH. MARATHON OIL COMPANY WELL 1697-13C-25 Lat. 39.51899• j NAD 83 Long. 108.17271' Lot. 39.51901' NAD 27 Long. 108.17208' El. 8349.7 GROUND 1312 PM. WELL LOCATION 897- LIC -25 s smoear r 41'7 BOTTOM HOLE OCA TION 897-}3C-25 90 53 REC N 8945'00 W 39.93 CH. MEAS. N 8802'07" W 263Z6 REC N 139'42'00' W 39.92 CH, REC. N 89'45'00" W 39.93 CH. 1, John L Dollnar of Green River, Wyoming hereby certify that in accordance with a request from Fronk Krogh for Marathon ON Company, 5555 San Felipe, Houston, IX 77056. 1 and or personnel under my direction mode a survey on the 8th day of November 2006, for the location and elevation of Marathon 011 Company, Well ,x/697 -13C-25 as .shown on the above Section Map as located within the NW/4SE/4SW/4 of Section 13, T 6 S R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground = 8349.7 Leet. Datum bosed on Colorado State Plane Coordinate System Centra! Zone NAD 83. Vertical Dotum based on NAW 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, based from GPS position In project area. NOTE: Record bearings au shown are based on the General Land Office survey, os approved on February 24, 1921. JOB N0. 28099 05/05/2007/WHO PAD 697-13C/PAD697-13C PLATS LOCA CPS COOP Cf 25 ON t1/0e/2008 IMPROWMEN S ROA) SURFACE USE CRA2Ma swim OAK AND NATURAL 1210t1'J 697-13C-25 SHEET 1 of 2 550 EAST 2ND NORTH PH, 307-875-3638 FAX. 307-875-3640 w ui U WILLIAM H. SMITH & ASSOCIATES P.C. P.O. BOX 820 SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 T 6 S R 97 W A: u jilREC N 89'42'00" 39.92 CH. PLAT FOR BOTTOM HOLE LOCATION LEGENO `""EIA/ND DLO svY R4£ MARKER MONUMENT NOT FWND OR SEARCHED ROADS P 8 8 p z MARATHON 0!L COMPANY 8HL 697-13C-25 Lat. 39.51887' / NAD 83 Long. 108.17107' Lat.39.51889' , NAD 27 Long. 108.17043' 1612 Flit Milt toCADON 697-0C-25 H u.tr" w T BOTTOM HOLE MAIM 697-M-25 REC N 89'45'00 W 3993 CN. MEAS. N 88'02'07" W 2637.6 REC N 89'42'00' W 39.92 CH. REC. N 89'45'00' W 39.93 CH. 1, John I. Dollnor of Green River, Wyoming hereby certify that In accordance with a request from Fronk Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. I and or personnel under my direction mode o survey on the 8th day of November 2006, for the location of Marathon 011 Compony, PAO ,697-13C, Bottom Hole Location 697-13C--25 site as shown on the above Section Map as located within the N/2SE/45W/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum based on NAWD 88 NGS Triangulation Station SHALE. Note: Basis of bearings are relative on grid, based from GPS position In project area. NOTE: Record hearings as shown are based on the General Land Office survey, os approved on Fobruory 24, 1921, JOB NO. 26099 06/05/2007/WHO PAD 697-13C/PA0697-13C PLATS COCA CPS ODOR OF 2.5 ON t1/oe/20oe IMPR0F91IENTS ROAD Acro NATURAL r scale °'k 697-13C-25 SHEET 2 of 2 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 307-875-3640 6 8 z %ZP�O Rf.Gj; j ,titt, t✓'AHIB1T "B8" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T6S R97W PLAT FOR SURFACE HOLE LOCATION P.O. BOX 820 GREEN RIVER, WYOMING 82935 LEGEND ® MARKER GLa SURVEY O SEARCrED r POUND -- ROADS REC N 89'42'00" W REC N 89'42'00 W 550 EAST 2ND NORTH Ptt, 307-8753638 FAX. 307-875-3640 q9 a MARATHON OIL COMPANY WELL 1697-13C-27 Lat. 39.51893' Long. 108.17275' l NAD 83 Lat. 39.51896' Long. 108.17211'1 NAD 27 El. 8349.8 GROUND 6 N t REC N 89'45'00 W 39.93 CH. MEAS, N 86'02'07" W 2637.6 39.93 CH. 1, John I. Minor of Creep River, Wyoming hereby certify that In accordance with a request from Frank Krugh for Marathon 011 Company, 5555 San Felipe, Houston, TX 77056. 1 and or personnel under my direction mode a survey on the 8th day of November 2006, for the locution and elevation of Marathon 011 Company, Well 1697-13C-27 as shown on the above Section Mop as located within the NW/4SE/4SW/4 of Section 13, T 6 S, R 97 W, of the 6th Principal Meridian, Garfield County, State of Colorado. Elevation of ungraded ground = 8349.8 feet. Datum bused on Colorado State Plane Coordinate System Central Zone NAD 83. Vertical Datum hosed on NAI'D 88 NGS Triangulation Station SHALE, Note: Basis of bearings ore relative on grld, bused from GPS position 1n project area. NOTE: Record bearings as shown are based on the General Land Office survey, os approved on February 24, 1921. J08 NO. 28099 06/05/2007/WHD PAD 697-13C/PAD697--13C PLATS MCA GPS COOP Of 25 ON t1/0e/2006 tA+PRO4fato TS: ROAD SURFACE USE 0RADNG S(Ytt19 OAK AMO NATURAL GROUND 697-13C-27 SHEET 1 of 2 P.O. BOX 820 GREEN RIVER, WYOMING �I.NC 1 § LEGEND *FOUND GLO SUM?' MARKER OAMcMJM NOT FOUND ROADS WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 82935 T6S R97W PLAT FOR BOTTOM HOLE LOCATION REC N 89'42'00" W REC N 89'42'00" W 550 EAST 2ND NORTH PH, 397675-3634 FAX. 507-875-5640 S MARATHON OIL COMPANY BHL 697-13C-27 Lal. 39.51711' 1 NAD 83 Long.108.1710r Lat.39.51714' 1 NAD 27 Long. 108.17043' 6 MEASN89 88'0 0 " J9 637 6' 39.93 CH. 1, John 1. Dollnar of Green River, Wyoming hereby certify that In accordance with o request from Fronk Krugh for Marathon 011 Company, 5555 Son Felipe, Houston, TX 77056. 1 and or personnel under my direction made a survey on the 8th doy of November 2006, for the location of Morathan 0i1 Company, Pad ,{'697-13C, Bottom Hole Location 697-13C-27 site as shown on the above Section Map as located within the S/2SE/4SW/4 of Section 13, 7 6 5, R 97 W, of the 61h Principal Meridian, Garfield County, State of Colorado. Datum based on Colorado State Plane Coordinate System Central Zone NAD 83, Vertical Datum based on NAVD 88 NGS Triangulation Station SHALE. Note: Basis of bearings ore relative on grid, based from GPS position in project area. NOTE: Record bearings as shown ore basad on the General Land Office survey, as approved on February 24, 1921. JOB NO. 28099 06/05/2007/WHD PAD 697-13C/PA0697-13C PLATS LEMA CPS COOP OF 25 ON 11/00/2006 IMPR05flTS: ROAD SURFACE USE CRADNG. SCR AND NATURAL D 0i� GROUND p 697-13C-27 SHEET 2 OF 2 u1 N o. 18979 —SEAL 11111 11111 11111 ■N -- M== N NM- r NM NM NMI ASIC - Scat.: 1 `— T 0' S 28'44'21- W P.O. 80X 820 WILLIAM H. SMITH & ASSOCIATES P. C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY SURFACE HOLE LOCATIONS FOR PAD 697-13C LAYDOWN r 550 FAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 AI p O 0 »697-730-27 697-73C-121697-73C-23697-130—ZS 1 697-13C-14 697-730-16 1597-13C-27q`�t{` 697-13C-18 .22 533 NAO 83 NAD MAO 83 23. ss 1625017.07N 10.49 1625003.91N� N4D 1624997.34 83 N 1624990.76 N! 4984.19 83 E 2246 724.60E 2246121.00E 2246177.39E 2246713.79E 2246170.18E 2246106.57E 2246102.97E 2246099,36 MAD 27 NA0 27 MAO 27RAD 27 MAD 27 MAO 27 MAO 27 N 525020.93 N 625014.35 N 525007.77 N 625001.20 N 6244994.62 N 6244983.04 N 624981.47 N 624974,89 E 1246284.67 E 1246281.07 E 1246277.46 5 1246273.86 E 1246270.25 E 7246266.64 E 1246263.06 E 1246250.43 Coordinates based on Grid Colorado State Alone Coordinate System Centra( Zone NAD 83 and NAD 27 JOB NO. 26099 06/05/2007/WHO PAD 697-1.3'O/PAD697-130 SI L.DWG S 2844'27' W PREPARED FOR: MARATHON OIL COMPANY P.O. Bax 3728 Houston, 7X 77253 5555 Son Felipe N«rst,n. Tx 77056 LOCATION; SUL FOR PAD 697-13C WHIN THE SW/4 SEC170N 13, 76$ R 97 W, 67H PAL CARFIELD COUNTY, COLORADO P.O. BOX 820 LXH1151I' c4B10" WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY Seal.: BOTTOM 660.0 --.- 160.4 -- --- -- .50 .0 HOLE LOCATIONS FOR PAD 697-13C SW/4 SECTION 13 3 1897-13C-12 N 1625958'75 NAD 83 E 2245289,82 f 24547.45 £ 1245449.705 NAD 27 E 1245N9. 70 f 697-13C-14 •r N '825318, 0? 1NAD 83 E 2245271.02 N 625308.71 LAD 27 £ 1245431.115 l 897-23C-16 ( PAD 97i?3C P N 1624679.27 �, E 2245252,431NA0 N 824669.97 NAD 27 E 1245412,51 (1 —1 697-13C-18 T.' EN 1624040.522245233,83 NAD 83 fN 62403 t . 23 1 NAD 27 £ 1245393.92 M 550 EAST 2ND NORTH PH. 307-875-3638 I'alll, 30-878-3640 897-130--21 N 1626231.52 E 2248612,90 1 NAD 83 N 626222.23 NA E 1248i 95 0 27 697-•13C-23 Q. N 18256s92,62 iNAO 8J 2248544,80 N 625583,33 jNAD 27 E 1246 D4 1997—VC--.913 N 1824953.72NAD 83 E 2248576,86 N 824944.43 NAD 27 t248r- d92 - 11yyy��660.0 =-._.-- 7 8E- 2246,314.83 NAD 83 h E- 2246558..84 r N 624305.54 1 1246Ma90fN� 27 ? C. 11 59'-15.60,, N .39.93 CH. ME/ S. N 98V2"c7" tY 2637,5 Coordinates based on Grid Colorado State Plane Coordinate System Central Zone NAD 83 and NAD 27 JOB NO. 26099 06/05/2007/WND PA0697-13C/PA0697-13C BHC OPTION C.dwg f,.EC, 1, 3 cr ..15.60" •15'60" at• ' 6.9.3 CH. l PREPARED FGR: MARATHON O%. COMPANY P.O. Sox .3128 Houston, TX 77253 5555 Son Felipe Houston. IX 77056 LOCATION: DHL FOR PAD 697—?3C IHTHIN 1HE SW/4 SECTION 13, r6SR97W.61NP.M GARFTELD COUNTY, COLORADO £ Afl lli. "‘...11 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS MARATHON OIL COMPANY P.D. BOX 820 GREEN RIVER, WYOMING 82935 Scale: I "= t OO' CONTOUR INTERVAL 2' /// � / /. PAD 697-13C-21• 550 EAST 2ND NORTH PH. 307-875-3838 FAX. 30-A73-3646 i i 1554) • EXISTING ROAD RESERVE PIT SIZE 209' X 75' X 15' SLOPE — 1:1 RESERVE PIT CAPACITY 31,294 BOLA FULL 23,369 Bats 14 110N0 CAPACITY 1471H J' FREE BOARD JOB NO, 26099 06/05/2007/WND P,40697-13C/PA0697-I3C.DWG OUTSIDE SLOPES 7.5:1 QUANTITIES: TOTAL CUT 65,724 BANK CUM YARDS TOTAL FILL .. 55,557 BANK CUBIC YARDS 1t'SOIL AT 6 INCHES OF DEPTH .3,503 BANK CUBIC YARDS SP0L - 5,327 BANK CUBIC YARDS DISTURBED AREA . 189,191 SQ. FT. O4 4.34 ACRES No. 18979 • ( F':4TF "r(,)1V/AL ..... 'SEAL", PREPARED FOR: MARATHON CIL COMPANY PO. Bax 3128 Houston, IX 77253 5555 Sart Fa+a Houston, TX 77058 LOCATION: PAD 697-13C•-21 1522' EX and 1220' FSI. WELL FALLS WITHIN THE SW/4 SECTION 73, T 6 5, R 97 W, 6114 PAL GARFIELD COUNTY, COLCRA00 SHEET t OF 4 "C2" WILLIAM H. SMt HB& ASSOCIATES P.C. SURVEYING CONSULTANTS MARATHON OIL COMPANY P.D. 90X 820 GREEN RIVER, WYOMING 82935 8320.00 8320.00 8320.00 r FIN!SHE PAD 697-13C 3+40 FINISHED GR9DE- 832.6.5' / 1+90 ,00 FINISHED GRADE" 8,336.5' J \PIT 0.10 _ 0+00 \ -300 -200 -100 0 HORIZONTAL SCALE: r=100 FEET VERTICAL SCALE: 1 "=40.00 FEET J08 NO. 26099 08/05/2007/WHO PA0697 f3C/PAD697—J3C.DWG 550 EAST 2ND NORTH PH. 307-875-3838 'A'. S07-875-3640 100 200 300 OUTSIDE SLOPES 1.5:1 QUANTITIES TOTAL CUT . 68,724 BANK CUBIC YARDS TOTAL F7LL . 58,557 BANK CUBIC YARDS TOPSOIL AT B INCITES OF DEPTH . 3,503 BANK CUBIC YARDS SPOIL . 8,321 BANK CUBIC YARDS DISTURBED AREA . 189,191 SQ. FT. OR 4.34 ACRES PREPARED FOR: MARATHON Q1. COMPANY Ra Box 3128 Houlton, TX 77253 5555 Son FN Houston, IX 37056 LOCATION: PAD 697-13C WHIN THE SW/4 SECTION 13, T 6 S, R97W, ISM PM. CARFIELO COUNTY, COLORADO SHEET 2 OF 4 P.O. BOX 820 LIS H1111'1"C3" WILLIAM H. SMITH 8c ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMING 82935 MARATHON OIL COMPANY sval.: 1.. 80' RESERVE: PIT SIZE 209' X 75' X 15' SLOPE .- 171 RESERVE PIT CAPACITY 31,294 88ts FULL 23,369 BBL* WORKING CAPACITY 1.4101 3' FREE BOARD JOB NO. 26099 06/07 2007/WHD PA0697 13C/PAD697-13C PAD 697-13C DRILL DIRECTION LAYOUT / ; ey pp If 6 I71 r3c�- r2 6 uc� OO7-1, C l e97-r.sc-?7� 697-rx-f • d ot1." p ro* 4'Y / 44,/ wryi e h/ ''•../ N7 *,`� / bio�, / /- - �\ �,;4 �. � / /' S.dstdJ9l 6 M6 /. / OUTSIDE SLOPES i.5: OUAN TIRES: TOTAL CUT - 88,724 BANK CUBIC YARDS TOTAL FILL - 58,5,57 BANK CUBIC YARDS TOPSOIL AT 6 INCHES OF DEPTH - 3,503 BANK CUBIC YARDS SPOIL - 8,321 BANK CUBIC YARDS DISTURBED ARCA - 189,191 50. FT, OR 4.34 ACRES DRIB DIRECTION.DWG 550 EAST 2140 NORTH PH. 307-675-3638 FAX. 307.875-381D PREPARED FOR: MARATHON CIL COMPANY P.O. Box 312E Houston, TX 77253 0555 Son PNP• Houston, TX 77050 LOCATION: PAD 697-I3C MORN THE SW/4 SECTCN 13, T 6 5, R 97 W, 6TH PM. GARFIETD COUNTY, COLORADO SHEET 3 OF 4 r',nnxntI -LA- WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS MARATHON OIL COMPANY P.O. BOX 820 GREEN RIVER, WYOMING 82935 Scale: 1",=. 80' PAD 697-13C FACILITIES LAYOUT 550 EAST 2ND NORTH PH, 307-875-3638 FAX. 307-8753610 ACCESS ROAD RESERVE PIT SIZE 209' X 75' X 15' SLOPE = 1:1 RESERVE Psr CAPACITY 31,294 Ms FULL 23.369 RBL, WORKING CAPACITY WITH 3' FREE BOARD JOB NO. 26099 06/05/2007/WHD PA0696-13C/PAD696-13C OUTSIDE SLOPES 1,5:1 oUANRDE5: TOTAL CUT . 63,724 BANK CUBIC YARDS TOTAL FILL - 53,557 BANK CUBIC YARDS TOPSOIL AT 6 INCHES OF DEPTH - 3,503 BANK CUBIC YARDS SPQR, - 8,321 BANK CUM YARDS 0lSTURBED AREA - 189,191 SO. FT OR 4.34 ACRES FACIUTIES.OWG PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston, TX 77253 5555 Son Fo4os Houston, TX 77056 LOCATION: PAD 697-13C WITHIN THE SW/4 SECTION 13, T 6 5, R 97 W, 8711 PM. GARFIELD COUNTY, COLORADO SHEET 4 OF 4 EXIIISIT 661)1" r. • x NAI ti97 13b. , SW/4 40;t T6 R97W •,•f• TOS 17S , �.‘T7S h 0 • T7S )RAMI BY; W 1D WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS d50 Lt97' SECOND NORTH P101M7-870-35,18 T7REZ1I WV112, W` DD7-1175-315,10 irwn: vha iJ hpo, c m JOB NO: 26099 DATE: 05/24/07 o�t>, h.� PAD 697-13C LOCATED IN THE SW/4, SECTION 13, TOWNSHIP 6 SOUTH, RANGE 97 WEST, SCALE: 1" — 2 MILES • !` T7S; • ..T7S_ -ras':: VICINITY MAP F6R MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE TOPO MAP Al 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 %. i ,'i EXHIBIT "D2" ISS WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS 600 L3T SL ND NOM PBON, 307-078-3638 ORWI I RZVIR MY art- - aeoP .w. wlumlwPo, oom 'RAP, BY KW 1 JOB NO: 26099 I DATE: 05/24/07 PAD 697-13C LOCATED IN THE SW/4, SECTION 13, TOWNSHIP 6 SOUTH, RANGE 97 WEST. SCALE: 1" = 1 MILE • i • if .. tl • VICINIr' MAP FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE •� • / . IBS J 7S: TOPO MAP A2 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS P.O. BOX 820 T 6 S R 97 W 550 EAST 2ND NORTH GREEN RIVER, WYOMING 829,35 PN. 307-875-3638 PLAT FOR PROPOSED SECTION 13 AND PORTION FAX, 307-875-3640 OF SECTION 24 PLAN OF DEVELOPMENT MAP MEAS. N 88'04'33" W 5258.3 REC N 89'42' W 79.84 014. AE N 01'40'44` 129.6 %MEAS. N 88w'O7 W 2637.6 REG N 89'45 W 39.93 CH. UNE 3 MARATHON OIL COMPANY PAD 697-13C JOB NO. 26099 01/02/08 CEO SEC 13 PLAT.dwg TIE N 86'42'13" E 641.9 MEAS. N 88'01'21" W 2624.4 REC. N 89'45' W 39.93 CH. LEGEND • FOUND GLO SURVEY MARKER O MONUMENT NOT FOUND OR SEARCHED 5X6671140 ROA0 PROPOSED P/PEUNE EXIST1140 PIPELINE TPROPOSED MAIN CORRIDOR PROPOSED PIPELINE "T" LINE TABLE FOR MAIN CORRIDOR LINE BEARING DIST, LINE 1 N 8852'02" W 809.2 LINE 2 N 87'40'46" W 1069.5 LINE 3 S 63'06'16" W 136.1 6 0 t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 EXIIII3IT "D4" ACCESS ROAD--,,, N CORNER OF PAD LOOKING SOUTHERLY 44Pr ACCESS ROAD - ACCESS ROAD --,1 NE CORNER OF PAD LOOKING SOUTHWESTERLY ACCESS ROAD ---.4_. SW CORNER OF PAD LOOKING NORTHEASTERY WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS MO JUST 6 RnXS WY HORJH mon 907-696-9636 inn,: B07-676-9AaD * RANK BY: WT -ID , JOB NO: 26099 1 DATE 05/24/07 A:F9i. t�it.FY�p S CORNER OF PAD LOOKING NORTHERLY PAD 697-13C LOCATED IN THE SW/4, SECTION 13, TOWNSHIP 6 SOUTH, RANGE 97 WEST, SCALE: N. T.S. PHOTOS FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE _t(OUSTON. TX 77056 PHOTO 61 ACCESS ROAD EXHIBIT "ll5" N CORNER OF PAO LOOKING SOUTHERLY ACCESS ROAD --4/1( - •;te rod <. 4 . )17A144.1 BY.: MD SW CORNER OF PAD LOOKING NORTHEASTERY WILLIAM H. SMITH & ASSOCIA TES P.C. SURVEYING CONSULTANTS 640 EAST SWORD ROM PRONt 407—O? —JWD ORM RIM WY OM— 676—WON www. IrArmltbpo.Darn JOB NO: 26099 I DATE: 05/24/07 ,szt ACCESS ROAD-�,.... r ,•ti,l a...r•.-"' .,...•....,...._a._ f?.aka,, tY 1:f ; ' se e'd'.JYrTTSI6 &V.,1•-!frGa:.r19=4143.1111[.4,•?$1Q1.7Wr-m'!.r •syar NE CORNER OF PAD LOOKING SOUTHWESTERLY ACCESS ROAD • $ititt•`.t47tRa.rr,'"- 1Tryr;r 4rCt:ir41,A;. e'1! �.xrr•s S CORNER OF PAD LOOKING NORTHERLY PAD 697-13C LOCATED IN THE SW/4, SECTION 13, TOWNSHIP 6 SOUTH, RANGE 97 WEST. SCALE: N.T.S. PHOTOS FOR MARATHON OIL COMPANY P.O. BOX 3128 HOUSTON, TX 77253 5555 SAN FELIPE HOUSTON. TX 77056 PHOTO 82 SURFACE AND ROAD USE AGflEEMENT This SURFACE AND ROAD USE AGREEMENT (the "Ao/een�oD�'l,^i� made and entered into as of April 30. 2008. by and between OXY USAVVTP LP. P.O. Box 27757, Houston,Texas 77227' 7757 ("OXY") and Marathon Oil Company, 5555 San Felipe, Houston, Toxoo 77058 ("Marathon"). WHEREAS, Marathon is the present owner af |eau0hb|d rights to certain conventional oil and gas minerals on the following described lands in Garfield County, Colorado: Section: NE/4 and SW/4 Section 21, NE/ and SW/Section 22, and NE/4and SVV/4Section 28 and VVHEREAS. OXY is thc s face owner of the ahovedeacrjhed and (the "Lands"); and WHEREAS, Marathon desires to use OXY's existing road on the Lands as shown on the attached Exhibit A (the "Existing Road") and to construct (a) up to four pads (hereinafter refoned to individually as a "Pad", and collectively {t�8|y ao the "Pads") on the Lands for the �dhUing of wells to produce oil and/or gas, (5) up to three pipelines withinone right-of-way to transport water, oil an�orgas hoand hn/nthe Lands, and � ) up 10 four access roads (each,"AccessHoad' . and collectively, the "Access Roads") leadingto such Pads; and an WHEREAS, OXY and Marathon desire to enter into this Agreement for the purpose of opecifying Na terms pursuant to which Marathon may use the Existing Road and the surtace estate of the Lands to (a) conduct operations to drill, equip and operate wells on the Pads and (5) construct and use pipelinesand Access Roads inSections 15,21.22.and 28ofTownship 8 South — Range 87West located in (3arfiu|d County, Colorado. NOW, THEREFORE, in consideration of the premises stated herein and other good and vm|uub|e consideration, the receipt and adequacy of which are hereby acknowledged by the parties hereto, it iS agreed as follows: 1. Commencing on the date shown above to ,January 1, 2028. and, with respect to any wefl on a Pad, as long thereaftcr as there is commercial production of oil and/or gas, OXY ngn)en tooUow Marathon non-exclusive (u) access to the Lands and (5) use of the Existing Road, /or the 6mhaUpurpoao of ingress and egress for drilling, completing and operating its well(s) located in Sections 22, and 28. 2. OXY agrees k)(a) the layout, construction and use of the Pada, the planned Pad reclamation, the pipelines, the Access Roads, and the temporary housing facilities shown on the attached ExhUbi(each of such exhibits containing eleven pages), and (h) the pipeline duw�opn0ontn�up shown onthe 8UaoheU C. auNoc\10OXY'Sprior vvrhien approval of the final pipeline plan as provided in Section 19 this Agreement. Any changes to the attached Exhibits B17B4 and are subject to the prior written approval o/ such approval not to be uo/easonab|y withheld. Pads must be thirty (30) feet from any existing pipeline, At the point an Access Road crosses any existing pin$ine, there must be six (6) /get of coverage between such Access Road and any such pipeline. An OXY employee must he present during any excavation and construetion activities related to the Access Roads and pipelines to be built Page 1 of 7 any additional pad(s) without tho prior written consent of OXY, such consent to bo qranted or denied atDXY'osole and absolute diooreti9n' 3. Upon execution of this Agreement, Marathon shall pay OXY (i) �5.000O0 per Pad being 8total of$20`U00. (11) $55.00�per rod for the right to use the Existing Road being $65.00 multiplied by the number of rods in the length of the Existing Road, Uii>.=' SO0 ' rod for the pipeline right-of-way, being $35.00 multiplied - by the number of rods in '--l-- length the pipeline right of way,and (iv) .$55.00 per rod for any�cnomS Road right-of-way, '— --= �' —U0 being nou|do|�dbvthe nurnbercfrods inthe length ufany Access R� -- 4. (a) Upon Upon execution of this Agreement and on January 15, 2009 and on every January 1.u thereafter during the term of this /\gnaerneOt, Marathon shall pay OXY $18.000.00 to cover Marathon's use of the Existing Road and to cover ordinary maintenance costs (subject to upward adjustment of such amount pursuant to the next sentence of this Section 4). Beginning on January 15, 2010, and on every January 15 thereafter during the term of this Auo8on)ont, the annual rate shall increase by 3%. in addition to the annual road use and maintenance fee, Marathon shall be responsible for any and all damages caused to the road by K4andhon, its affiliated entities and their respective oniployoos, contractors arid nvtees. /b> Marathon shall also pay [<Y20% of the total cost to repair the Existing Road ifdamage iscaused ;osuch Existing Road bvany significant 000unanoeipducUAO, but not limited to, a washout or flood. 5. Marathon agreos thatOXY is not, by virtue ofthis Au,eennantoroU)emine.under any obligation to improve the Existing Road. However, OXY shallfrom time to time perform or ,cause to be performed repairs and maintenance and required reclamation along its Existing Road. OXY will endeavor to maintain the Existing Road in a condition that is similar to its condition as of the dale of this Agreement o[advise Marathon should OXY decide to cease such maintenance. If Marathon desires to rnako additional repaire, do additional maintenance or improve the Existing Road. Marathon may do so at its own expense, subject to obtaininq OXY's prior written approval of the schedule for any such work on the Existing Road. 6. Marathon's right to use the Existing Road and U)oACuooa Roads is limited to access to the Lands by a totat of two cIrilIing rigs at any one tirne. Marathon rnust coordinate al rig moves with OXY via OXY's road use website. OXY has a first priority of operations when it comes to rig moves or general use of the Existing Road (e.g. Marathon may bo asked to reschedute if its plannod activities conftict with OXY's operations er rig moves). 7. Marathon acknowledges that the Existing Road is unimproved, narrow and can bo very dangerous due to the elements and t8/ruin. Marathon shall inform its eUlpl0yeos, nvitees and contractors of such dangers and shall require thern to drive such roads at a sate speed given the nature of the conditions. 8. This Agreement is subject to rights of way, easements and use agreements between OXY and third paftes using the Existno fload. O. OXY and Marathon agree that Marathon and its affiliated entities and their respective contractors, employees and invitees may not use the Logan Wash road shown on Exhibit A or the Conn Creek road which is also shown on Exhibit A. Marathon and its affiliated Page 2 of 7 Road by way of the Garden Gulch Road and Service Road shown an Exhibit A. Marathon will need to obtain rights-of-way from the appropriate party(ies) to access the Garden Gulch Road and the Service Road. 10. At least 30 days prior to commencing operations with drilling equipment for drilling a well on the Lands, Marathon shall evidence its intention to conduct such operations by giving OXY written notice thereof in 'lieu of any notice provisions of Rule 305 of the Colorado Oil and Gas Conservation Commission ("COGCC"). Marathon shall provide the following: (a) The estimated date that operations are to commence. (b) A plat or legal description indicating the quarter section upon which the operations will he conducted. (c) Dimensions of the drill site, if known, and the location of associated production facilities, pipelines and roads. 11. Marathon shall install sufficient fencing and/or gates and cattle guards to safely restrict livestock and other animals from Marathon's operations on the Pads. Marathon shall also repair any damages it creates to the roads, fences, premises, gates, culverts, cattle guards or otherwise on the Lands. 12. Marathon agrees that its •iccess to the Lands is limited to its employees, contractors and agents who are involved in operations on the Pads. No firearms, weapons, illegal drugs, alcoholic beverages, or hunting will be permitted on the Lands. Marathon shall leave ail gates located upon the promises open or closed as found, locked or unlocked as found, and shall keep the Lands free from trash and debris. Marathon agrees to provide notice of these restrictions to all of its employees, contractors, agents and invitees who may have access to the Lands, and all such employees, contractors, agents and invitees shall be hound by said restrictions. 13. Upon completion of the final welt on any Pad and installation of all related production equipment, Marathon shall re -contour and reclaim that portion of the Pad that is not required for production and also re -seed all disturbed areas, including the topsoil and excess material stockpiles and those areas required for operation and maintenance purposes using a seed mix approved by OXY. The portion of the Pad to be reclaimed shall he returned to the original topography and vegetation planted and successfully established cornparable to that existing prier to construction, All reclamation and rovegetation, as to planting periods and seeding rates of grasses, shall, at a minimum, comply with all requirements and stipulations for similar sites, as adopted or imposed by the Bureau of Land Management ("BLM"). 14. Within ono hundred eighty (180) days of ceasing all production operations associated with a Pad, Marathon shall (a) re -contour and reclaim the site, (b) return the Access Road (except if OXY designates it a permanent road), and sites, the use of which is to be terminated, to their original grade and vegc-tation, as nearly as possible, (c) remove from the Lands all materials installed by Marathon, excoot for (i) properly plugged and abandoned wells, and (ii) rmicterials that OXY has approved to remain on the Lands. Final reclamation shall include re-establishing the encountered drainage courses, Marathon will also re -seed all disturbed areas using a send rnix approved by OXY. All remediation shall comply with the rules of the E3LM. Within one hundred eighty (180) days of any well on a Pad failing to be completed as a Page 3 of 7 producer of oil and/or gas in paying quantities, Marathon shall plug and abandon any such well 0rwells pursuant toCOGCCrequirements. 15. Within ninety (90) days of permanent termination of production operations at a Pad, Marathon shall provide OXY with an environmental survey report documenting that such Pad is in co/npUenooYvi1heppiicaU/e local, siate, and federal laws and regulations.Said report shall be prepared by Marathon or its conSu|tanta. Any noncompliance issues resulting /r0fromk4arRthon'S0paokk>OSthatareidanhh8dinsuch report U withinnh�bebr0ughtink] ninety (90) days of Marathon's receipt of such report, unless otherwise agreed compliance~ n writing by OXY, or within the. time specified by the rU|es. regulations ar orders of any governmental agency with jurisdiction over such cornpliance, which ever is oartier. .shall. (a) The Access Roads shall be constructed to standards as described in "Surface Operating Standards for Oil and Gas Exploration and Development" 4th [dihmn, Prepared by the BLM / Forest Service Rocky Mountain Regional Coordinating Committee or of similar utility. (b) Lhe Access Roads shalt he roperiy graded, driijned, and rnaintairied by Marathon, (c) Culverts, at ditch and drainage crossings, and barrow pits shall beins�||�w�e the A�e�Rn�sm�sd�-esordrainages. Marathon shall obtain Army Corps of Engineers perrnits for draimu8crossings whore required and OXY with a copy of each permit. Marathon shall bear responsibility for repairand — provide maintenance of such culverts and �ndliabilityfor flooding or other damage caused |- cauo � culverts. such (d) The Access Roads shall be/Or\he private use of Marathon, its agents, employees, invitees and contractors only, with no right of use by the public. OXY reserves the right to uoe the Access Roads. for any purpose that does not unreasonably interfere with Marathon's operations. (e) COGCC regulations notwithstanding, OXY shall have the right to designate any Access Road as a permanent road. Permanent roads will not be reclaimed after completion of production activities by Marathon. Any obligation or liability imposad upon Marathon, as the result of not reclaiming any such permanent road, shal! be ssun)ed by OXY after the end 01 (1)!! and gas operations. 17. Access Road rights of way shail bo limited to 30 feet in width with a 20-/0ct travel surface, Access Roads may be widened beyond the ri-h1ofwayinp|aroxwhonemurhwidaning is necessary upon approval of OXY, such approval not to be unreasonably withheld. Such widening is to be limited to the minimum practical extent. 18. All non -traveled portions of Access Roads that have not been designated as permanent roads shall boseeded byMarathon per BIM specifications. 19. All pipelines constructed pursuant to this agr8ernmU|ahaU be within one right of way which shall bo 50' feet in width and shall be installed during the same construction operation. In the event Marathon installs less than three pipelines within tho right-of-wayduringthe initial pipuUoe construction oporuhno, a separate agreement will be required for any subsequent pipeline kz be installed within such right-of-way. During the construction of the PrQm4W7 pipelines, there shall he an additional, temporary right of way totaling kwentv'8ve (25) feet in vwdth,00nlphsodofanaddiUU ona|h*�|Ye�nd0ne'ha|�2.5>fee1nnoochsida'/8)aig'of way centerline, The right of way shaU he to one side of a road right of way where practicable and shall�fromoh�be no less than 30 feet the Existing Road or any other OXY road. The pipelines and the pipeline right ofway shall be constructed so that they will not undermine or damage` -- the Existing Road or any other OXY road in any manner The final pipeline plan shall be subject to OXY's prior�D approval.OXY reserves the right in its sole and absolute to construct pipelines and/or roads on, over, across, under and/or through the pipeline right - of way and Access Roads, end shall provide notice to Marathon prior to any such construction. 20. Where practicable, all pipelines and flow lines outside of the porrranent wofl site shall he huried at least three feot below final grade, 21. Marathon shalt provide OXY with surveyed as -built drawings of all pipe nes constructed on the Lands. The proposed pipeline routes shaUbeUegg8dhyK4G�thon. 22. Marathon shall be responsible for weed control in all a/ero disturbed by Marathon for the term of this Agreement until re -vegetation with acceptable grasses and other vegetation has been completed. Any weed control or remediation of disturbed areas required by a governmental entity as a result of Marathon's operations shall he the responsibility of Marathon. 23. Except to the extent of the willful misconduct of the OXY G[oup, Marathon hereby agrees to re|anoa, discharge, indemnifv, defend and hold harmless OXY, its affiliated entities, and its and their /nproxeOtaVven, directors, oMicora, employees, and agents ("OXY Group") from and against any and all darnages injuries (including death), liabilities, and causes of action of any kind whatsoever ('Claims") which may arise out of or result from the operations and presence of Marathon, its affiliated enhties, and its and their representatives, employees, contractors agents or nvilees ("Marathon Group") on the Lands, and roods leading to and from the Lands, i0u|Vd' . but not limited to, Claims resulting directly or indirectly from (a) the uao 0� the Existing Road or Access Roads by the Marathon Group, or (b) the presence ot (i) the Pads, or any wells thereon, (ii) any pipelines constructed by the Marathon Gnx/p, or (iii) any of the Marathon Group's facilities, including those for ternporary housing. Marathon agrees todefend any suits brought against OXY on account of any such Clairns and to pay any judgments against OXY which may result from any such suits, together with all costs and expenses which may be awarded relative to such Clairno, including attorneys' fees. Without limitation to the foregoing, Marathon further agrees to release, diooAar0n, indenify, defend and hold OXY harmless from and against any soil, water, air, or any other environmental contamination arising or occurring from Marathon's use of the Lands. Marathon agrees to irnmediately notify OXY of any such aforementioned Claim or any violation of governmental laws, rules or regulations *iioh concern the Lands or the health and safety of personnel using &eLanUu for Marathon's operations. 24. Marathon warrants and agrees that it will comply with any and all |avva, nn1ine/mou, orders, rules, /egu/ehons, standards and licensing requirements of any state, !edr/ai municipal or local authority or agency, now in force and effect or'which may be posned, ena(-;tad[ issued, revised, /equired or later pvonno|gotoU, incident to or arising out of or in any way connected with Marathon's utilization of the Lands or any activity conducted wx1er, pursuant to or by virtue of this Agreement. Marathon agrees that it will not disohanDe, dump, bury or store for purposes of treatment or dispuna|, pollutants of any kind on the Lands including, but not limitod to. pollutants such as oil, chemicals, toxic substances or rnatexials, Page 5cV7 hazardous wastes or hazardous substances, including pollutants as the same may he defined, now or in the future, in any federal, state, or municipal laws, -rules, regulations or ordinances. Marathon specifically agrees to fully indemnify and hold OXY harmless from and against all claims, demands, losses, costs of removal and/or clean up of pollutants, judgments, causes of actions, fines, penalties, costs, including, but not limited to, reasonable attorney's fees and costs of court, arising out of or connected with Marathon's operations and/or noncompliance with the terms of this Agreement, 25. This Agreement -does not grant to Marathon the right to use water owned by OXY located on the Lands or water rights of OXY, except as specified in a separate written agreement among the parties hereto. 26. All notices required or permitted under this Agreement shall be in writing and, (a) if by air courier, shall be deemed to have been given one (1) business day after the date deposited for next day delivery with a recognized carrier of overnight mail, with all freight or other charges prepaid, (h) if by facsimile or teleoopy transmission, shall be deemed to have been given when the sender receives tolecopier or facsimile confirmation that such notice was received al the telecopier or facsimile number of the addressee, and (c) if mailed, shall be deemed to have been given upon the earlier of five (5) business days after the date when sent by registered or certified mail, postage prepaid, or the date of delivery as shown by the return receipt therefore, addressed as follows, unless another address is designated by a party hereto by written notice to the other party: MARATHON: Marathon Oil Company Attention: New Ventures Land Manager 5555 San Felipe Houston, Texas 77056 Phone: (713) 296-1913 Fax: (713) 499-6769 OXY: OXY USA WTP LP Attention: Colorado Land Negotiator P.O. Box 27757 Houston, Texes 77227-7757 Phone: (713) 215-7000 Fax: (713) 215-7545 27. Noise levels shall be governed by COGCC regulations, or local rules or reculations if more stringent, including during faring of gas. 28. A copy of any Marathon requests for variance from surface use or reclamation regulations for the Lands, not requiring a petition and notice to OXY, shall be delivered to OXY at the same time as delivery to the COOCC. 29. Marathon shall keep its operations insured, or self-insured, in accordance with applicable laws and regulations for automobile liability and workmen's compensation insurance. Page 6 of 7 30. This Agreement may not be assigned by Marathon without the prior written consent of OXY. This Agreement is assignable by OXY in its sole discretion. 31. Marathon shall, at its sole expense, keep the Lands free and clear of all liens and encumbrances resulting from Marathon's and its agents' activities on the Lands and shall indemnify and hold harmless OXY from and against any and all liens, claims, demands, costs, and expensos, including, without limitation, reasonable attorney's fees and court costs, in connection with or arising out of any work done, labor performed, or materials furnished. 32. Marathon will reimburse OXY for actual costs incurred and resulting from traffic delays caused by Marathon's employees, contractors or invitees. OXY shall not be responsible, or liable in any way to Marathon for any traffic delays caused by OXY's ernployees, contractors or invitees. 33. Marathon must enter into a contract with a company pre -approved by OXY for the purpose of towing any of its employees', contractors' and invitees' vehicles that get stuck in mud, snow, etc. 34. Marathon must obtain prior written consent from OXY in order to construct any additional pipelines, utility line, Scada tower, road (other than the Access Roads), or other structure or facility on the Lands. 35. OXY shall provide Marathon notice of any material breach of this Agreement by Marathon. Marathon shall have 15 days to cure any such material breach. If the material breach is not cured within the fifteen day period, then OXY shall have the right to terminate this Agreement. f G. WITNESS THE EXECUTION HEREOF THIS r- DAY OF OXY USA WTP LP By OXY S IN Name: Alari Schwartz Title: Attorney- in -Fact al tamer iVMARATH9N OIL COMPAN Narr•,1ohn C. Albert Titic. Attorney -in -Fact j ) Page 7 of 7 , 2008. a 0- *cc .107r .005 Cre MPt N 114-W JAW ,4r.0 ACV 00 04 ar0r ULC. 51-40,2, an554, ...547 • N NYHT,, irr 2,4,5 9 In, • \K 0 • i L• \ ,.$.If-1?.5.‘ PIC HO, .00 O • N • IL4.1.7 WO 0,71/Y02 IV PLO, ' r.4 la )•'• &4.- Nflfl W;'cJ. _ 1' ogr n0,2or.H,0 maw 4545 (r,rvul 42,u frot,4; LCIIN0 pocoova ru• Exhibit "C" to Surface and. Road. Use Agreement dated April 30, 2008 • 2400 MO VOW, 40.1111 0,045.5ro 14‘0N Mr& 4,000 ••40-55. 454= !ex, +ton:. ,r000 Nat: 0,74,14075 SHOH ram ',ayes MO A000: V.. AM OMIVO 0,74.N0 455,4r5,55, WIt.1.1.41.1 H. SMITH ANC ASSOOFTES PC SURCI•INC CCNSU.1%/14 CICEN RIVZR. WYOMING 37.93•4 14140roa: .4DC .407) .175-3640 PLAT TOR PROPOSED SECTIONS 21. 22 AND 28 0LAN OF DEVELOPMENT MAP T 6 S, R 97 W CARFIELD COLORADO MA MARATHON MO' DSDS SAN FELIRE HOUSTON. TX. 77056 04/21/051 mots. CCD 26.790 ,S•CCI 1 Or • 1111111 1111111 111111 ON 111111 11111 111111 OM NIS 111111 11111 NM MR 11111. 11.111 IN 11111 In EASEMENT AND RIGHT-OF-WAY AGREEMENT THIS EASEMENT AND RIGHT-OF-WAY AGREEMENT is entered into and effective the 8°i day of November, 2007, between Puckett Land Company, 5460 South Quebec Street, Suite #250, Greenwood Village, CO 80111 ("GRANTOR") and Marathon Oil Company, 5555 San Felipe, I louston; Texas, 77056 ("GRANTEE"). RECITALS A. Grantor represents but does not warrant that it owns an interest in the surface estate to the property described below ("Subject Lands") and located in Garfield County, State of Colorado described as follows: Township 6 South, Range 97 West, 6111 Principle Meridian Section 23: All B. Grantee desires to obtain a pipeline easement ("the Easement") for the purpose of constructing, maintaining and operating up to three (3) pipelines for the gathering and/or transportation of oil, gas, water (fresh and produced) and other hydrocarbons across the Subject Lands. AGREEMENT In consideration of the foregoing recitals and the terns, covenants and conditions contained herein, Grantor and Grantee agree as follows: CONSIDERATION: For and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, in hand paid, the receipt of which is hereby acknowledged, Grantor does hereby grant, bargain, sell and convey to Grantee the use of a right-of-way to install, maintain, operate and replace up to three (3) pipelines, which is herein recited and reflected on the attached Exhibit "A". PIPELINE & RIGHT-OF-WAY: An easement and right-of-way to construct, lay, maintain, modify, operate, alter, replace, remove pipelines as described herein, including but not limited to valves, regulators, meters, separators, purification equipment and pipelines with fittings, appliances, and appurtenant facilities. Staging areas are not granted under this easement. The pipelines shall be used for the transportation and processing of oil, natural gas, water (fresh and produced), petroleum products or any other liquids, gases or substances which can he transported through a pipeline and for no other purpose. The centerline of the route for the pipeline easement granted herein is depicted on Exhibit "A", attached hereto and made a part hereof. Said easement and right of way shall be fifty feet (50') in width, for a total distance of approximately nine hundred sixty rods (960 rods). The pipeline route as shown on Exhibit "A" is subject to change upon receipt of a final survey, a certified copy of which shall be provided to Grantor at no cost. During the construction of said pipelines, an additional, temporary easement totaling twenty-five (25) feet in width, comprised of an additional twelve and one-half (12.5) feet on each side of the easement centerline, is hereby granted. Except where Grantee's activities will interfere with irrigation ditches, streams or creeks, Grantee shall bury the pipeline with a minimum of forty-eight inches (48") of soil from the top of the pipeline to the normal surface of the ground. The affected areas shall be recontoured and reseeded with species which are consistent with adjacent, undisturbed areas upon completion of pipeline construction to prevent erosion. Grantee shall be permitted to cut all undergrowth and other obstructions that may injure, endanger or interfere with the use of said pipelines. Grantee may request from time to time, to lay within the right of way described above an additional line(s) of pipe similar to or different in size from and alongside of the line herein mentioned. Grantor reserves the right to approve such request on a case-by-case basis. Upon such approval Grantee shall pay Grantor, his heirs or assigns for each additional line a sum of PU('KETT LAND COMPANY 1 or 5/24/2007 money equal to the consideration paid for the first Pipeline and Right -of -Way easement within 30 days of such written approval. Grantor reserves the right to the full use and enjoyment of the Subject Lands except for the purposes herein granted. Such rights reserved to the Grantor may include the conducting of haying, irrigation, and grazing operations, and Grantee agrees to coordinate post construction and maintenance operations with haying and ranching operations. In no event shall the location of this Right -of -Way unreasonably interfere with use of the Subject Lands for commercial development of any kind, or oil, gas, and oil shale development. The foregoing rights and privileges of Grantee are further conditioned upon the following: 1. DAMAGES: Grantee shall either repair and/or pay Grantor for damages (if any) caused by its operations on the Subject Lands relative to growing crops, buildings, ditches, fences and livestock of Grantor or Grantor's surface lessees. If Grantee makes any fence cut on the Subject Lands, it will install and provide for secure closure of gates. Ali gates of any kind or nature shall be kept by Grantee in the condition in which they were found upon entry. If Grantee discovers an open gate then Grantee will close the gate and notify Grantor. All equipment or appurtenances to the pipeline or wells, which shall be on or above the surface of the ground, shall be installed in a manner to protect the livestock of Grantor or Grantor's surface lessee when necessary. Grantee shall not alter the natural flow of any creeks, streams, or irrigation ditches relative to the Subjects Lands. Grantee shall notify Ray Anderson with Puckett Land Company of any activity that may impact Grantor's use of the Subject Lands and adjoining acreage. 2. OPENING AND RESTORATION OF FENCES: Opening and restoration of Grantor's fences shall be made at Grantee's sole cost, risk and expense as follows_ 2.1. Prior to cutting grantor's fences, at each fence opening Grantee shall tie the existing fence into a three -post, pipe "H" brace built pursuant to the following specifications: 2.1.1. Eight foot (8') by six inch (6") treated posts shall be set at least forty-two inches (42") in the ground and shall be braced to take the strain. 2.1.2. Center crosses shall be placed a minimum of thirty-six inches (36") above the ground. 2.2. Grantee shall install fence stays every four feet (4') in all temporary gates installed in Grantor's fences. 2.3. Grantee shall install a fence around all mud pits. Said fence shall have pipe "H" braces with five wires. Grantee shall install posts every twelve feet. 2.4. Grantee shall be responsible for preventing Grantor's livestock from escaping from or enabling livestock of others from entering through any fence openings resulting from Grantee's construction activities. If a gate is left open, Grantee is responsible for the cost involved in gathering the cattle that escaped, including the actual costs for cowboy(s) needed to recover any escaped livestock plus reimbursement for any damages. If it is determined that the livestock can not be recovered within a cost effective amount of time, Grantee shall have the option of compensating the Grantor for the actual Toss incurred due to the loss of livestock instead of continuing to attempt to recover the livestock. 2.5. Upon Grantee's completion of the construction, repair, maintenance, or alteration of the pipelines, Grantee shall promptly rebuild or repair any affected permanent fences equal to or better than the existing fence. Both Grantee and its contractors shall first consult and obtain Grantor's approval for location of fence work, materials and construction applications. Grantee shall use 13/4" staples, wood posts, Colorado Fuel and Iron (CF&1) heavy-duty steel posts and CF&1 barbed wire to rebuild Grantor's fence and consult with Grantor for approval of the fence builders that will do the fence replacement. 2.6. Fences shall not be considered equal to the existing fence if the posts have been undercut or brush has been shoved into the fence. If Grantee has disturbed the ground, plowed mud, or added other material within three feet of a fence, it shall he Grantor's judgment as to what fence is not equal to or better than the existing fence. 2.7. If requested in writing by Grantor, Grantee will also install pipe cattle guards of sufficient size and substance to bear Grantee's traffic and to turn all livestock. Such cattle guards shall not be installed without prior approval of Grantor and shall be installed in such a manner as to prevent water draining into the cattle guards, placed at a height so they are visible to cattle from reasonable distance, and shall be cleaned and otherwise maintained by Grantee. Quality metal gates shall be a minimum of ten feet in width, shall contain either a metal gate or electric fence and shall be placed PUCKETT LAND COMPANY 2 of h 5/24/2007 across and adjacent to the cattle guards. 3. LIVESTOCK: If any of the Grantor's or Grantor's lessees' livestock are injured or killed by the direct or indirect actions of the Grantee or its employees, contractors, subcontractors or agents (such injury or death being verified by veterinary evidence), the Grantee shall pay the Grantor the veterinarian, medical or other costs to rehabilitate an injured animal, or reimburse Grantor or Grantor's lessee(s) the value of an animal killed or euthanased, according to the following schedule: 3.1. Cows: Replacement cost of a bred heifer or $1,000.00, whichever is greater; 3.2. Calves: Market value of 700 Ib. calf or $750.00, whichever is greater; 3.3. Bulls: $3,000.00 or the acquisition price for that animal, whichever is greater; 3.4. Dogs: Current market price or the acquisition price for that animal, whichever is greater. 3.5. Horses: Grantor shall maintain and provide to Grantee upon Grantee's written request, an Inventory of its horses as well as the horse's market value. Grantee agrees to reimburse Grantor the value of the horse based on the Inventory in the event the horse is killed by the direct or indirect actions of the Grantee. 3.6. Other domesticated Livestock: Then -current market price or the acquisition price for that animal, whichever is greater. 4. MAINTENANCE: All access roads, fences, and gates impacted by Grantee's use or operations which are subject to this Agreement shall be maintained by Grantee in as good condition as exists at the time of execution of this Agreement, ordinary wear and tear excepted. Grantor shall give Grantee written notice of degradation or damage to the Subject Lands caused by Grantee's operations. 5. WEEI) CONTROL: Grantee shall be responsible for controlling all noxious weeds, including without limitation, halo Eton, cocklebur, Canada thistle, knapweed species, leafy spurge, houndstounge, musk thistle and whitetop species on lands disturbed hereunder. Grantee shall also be responsible for preventing such noxious weeds from spreading to Grantor's lands adjacent to the easement. In the event such noxious weeds spread to Grantor's lands adjacent to the lands subject to the easement granted herein, Grantee shall be responsible for controlling the noxious weeds of those lands as well, provided that those portions of the Subject Lands affected by the construction of the right-of-way were free of such noxious weeds prior to such time of construction. If the lands immediately adjacent to the right-of-way are not free of such noxious weeds prior to construction of the same, Grantee's responsibility shall be limited to reasonable control of such noxious weeds on the lands within the easement. If Grantee locates or Grantor notifies Grantee of location of noxious weeds on the right-of-way, Grantee shall implement control procedures before noxious weeds go to seed. Grantee's responsibility for weed control shall be ongoing and shall continue for three (3) years after the easement has ceased to be used by the Grantee for the purposes herein granted. Such control procedures as set forth above shall at the very minimum conform to those established by the Bureau of Land Management. 6. NON-EXCLUSIVE USE AND RESERVATIONS: This Agreement and all other rights hereby granted are not exclusive to Grantee and are limited to the specific grant herein. This Agreement does not, in any way whatsoever, convey any water rights or the right to use water. Grantor reserves unto itself and its successors and assigns all rights not specifically granted to Grantee herein. Grantor may grant additional rights-of-way or easements on, over, across, under and/or through the Right -of -Way to any third party for any reason, in Grantor's sole and absolute discretion, so long as such grant does not interfere with Grantee's access rights as described in this Agreement. 7. AGRICULTURAL LIABILITY: Grantee shall take reasonable precautions to avoid damage to agricultural operations on or adjacent to the easement. Grantee shall have and assumes liability for all cattle, crops, or chattel lost as a result of Grantee's operations on the Subject Lands. 8. LOCAL. SPECIES/HABITAT LIABILITY: Grantee shall have and assumes liability for all endangered species, protected species, wildlife habitat and bio -diversity damaged or destroyed as a result of Grantee's operations on the Subject Lands. 9. CULTURAL AND PALEONTOLOGICAL RESOURCES: Grantee is to engage the services of a cultural resource specialist to conduct a cultural resource inventory of the area t'UCKETT LAND COMPANY 3 of 6 5/24/2007 of proposed surface disturbance following the guidelines of the Bureau of Land Management. Any and all resources inventoried shall be delivered to the Grantor. 10. LIABILITY OF THE PARTIES: Grantee covenants and agrees to fully defend, protect, indemnify and hold harmless Grantor, its officers, directors, employees and agents, from and against each and every claim, demand or cause of action and liability, cost and/or expense (including but not limited to reasonable attorney's fees and costs incurred in defense of Grantor, its officers, directors, employees and/or agents), for damage or loss in connection therewith, which may be made or asserted by Grantee, Grantee's officers, directors, partners, members, employees and/or agents, or which may be asserted by any third party (including but not limited to Grantor's officers, directors, employees and/or agents), on account of personal injury or death or property damage caused by Grantee's use of the Subject Lands or the rights granted hereunder, except to the extent such damage or injury results from the actions of Grantor, its contractors, agents or assigns. Where personal injury, death, or loss of or damage to property is the result of the joint actions of Grantor or Grantee, Grantee's duty of indemnification shall be in proportion to its allocable share of such action. It is expressly agreed that the indemnity obligation specifically includes, but is not limited to, claims arising under the provisions herein entitled Agricultural Liability above, and all federal laws and regulations including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A. &9601 et. seq. and amendments, Resources Conservation and Recovery Act, 42 U.S.C.A. &6901 et. seq. and amendments, Safe Water Drinking Act, 42 U.S.C.A. 300f et. seq. and amendments, Toxic Substances Control Act, 15 U.S.C.A. &2601 et. seq. and amendments, Clean Water Act, 33 U.S.C.A. &1251 et. seq. and its amendments, Clean Air Act, 42 U.S.C.A. & 7401 and amendments, Natural Gas Pipeline Act, 49 U.S.C.A. 1671 et. seq. and amendments, Hazardous Liquid Pipeline Safety Act, 49 U.S.C.A. 2001 et. seq. and amendments, and all state and local environment laws, rules, and regulations. Neither party shall be liable to the other for any damages due to fire, earthquake, flood, windstorm and other like casualty or other causes beyond its reasonable control, nor for damages caused by public improvements or condemnation proceedings. Notwithstanding the foregoing, neither party shall be required to settle a labor dispute against its will. 11. LAWS, RULES, AND REGULATIONS: Grantee shall at its sole expense comply with all federal laws and regulations as well as those of the State of Colorado and any other governmental authority having jurisdiction over Grantee's activities on the Subject Lands. Grantee shall deliver to Grantor copies of all permits, and cultural, botanical, and wildlife reports covering Grantor's land and adjoining Bureau of Land Management land. 12. DRUGS, ALCOHOL AND FIREARMS: Grantee shall not allow the use, possession, transfer, purchase or sale of illegal dnigs, narcotics, or other unlawful substances and materials by Grantee or its contractors, sub -contractors, agents, while on the Subject Lands or adjacent lands. The use, possession, transfer, purchase or sale of alcoholic beverages, firearms and other weapons upon the Subject Lands or adjacent lands is absolutely prohibited. 13. HUNTING AND FISHING: No hunting, trapping or fishing is permitted on the Subject Lands or adjacent lands and no such rights are granted by this Agreement. 14. WATER RIGHTS NOT CONVEYED: This Agreement does not, in any way whatsoever, convey to Grantee any water rights or the right to use water found on, under or appurtenant to the Subject Lands. 15. WATER AND DRAINAGE: Grantee shall have and hereby assumes absolute liability for damages to water wells, water tables, natural springs, running watercourses, and water tanks within 330' of the center line of the right-of-way insofar as damage can reasonably be determined to be the result of Grantee's operations. 16. ACCESS TO PIPELINE: Grantee agrees to install a tap on said pipeline in TBD (legal description). Grantee agrees to accept Grantor's gas at the tap on a best efforts basis. PUCKETT LAND COMPANY 4 of 6 5124/2007 Grantor's gas must be of pipeline quality. Grantee and Grantor shall negotiate a gas gathering and processing agreement at rates not to exceed the rate charged by Grantee for other third party services in the area for like quality gas. 17. NOTICE: Any notice or written demand to be given to Grantor or Grantee may be delivered in person, by fax or certified or registered mail, postage prepaid, addressed to the party for whom intended. Notice shall be deemed given upon receipt. Puckett Land Company Attn: Ray Anderson 5460 S. Quebec St., Suite 250 Greenwood Village, CO 80111 Phone: 303-773-1094 Fax: 303-773-1157 Marathon Oil Company Attn: Piceance Asset Manager 5555 San Felipe Houston, TX 77056 Phone: 713-296-3020 Fax: 713-235-6311 18. TERM: This Agreement shall remain in effect for a primary term ending December 31, 2009, and for so long thereafter as Grantee is using the Easement for the purposes described above. If, after this primary tern, operations for the transportation of natural gas cease for a period of more than twenty-four (24) consecutive months, then such operations shall be deemed not to be conducted and this Agreement shall terminate, except when non- use is caused by acts or circumstances beyond the control of Grantee. Following termination of this Agreement, it shall be Grantee's obligation to restore and reclaim all land affected by Grantee's activities to the extent required by applicable law or regulation established by the Bureau of Land Management or to its equivalent prior condition (ordinary wear and tear expected), whichever is greater, including, but not limited to, the removal of surface facilities. 19. GOVERNING LAW: This Agreement and all matters pertaining hereto, including, but not limited to, matters of performance, non-performance, breach, remedies, procedures, rights, duties, and interpretation or construction, shall he governed and determined by the laws of the State of Colorado. 20. MISCELLANEOUS: This Agreement contains the entire agreement between Grantor and Grantee and any prior oral representations or understanding concerning this Agreement or its subject matter shall he of no force and effect. This Agreement is subject to all currently existing contracts, leases, liens, easements and encumbrances or claims of title, which may affect the Subject Lands, and nothing contained herein shall be construed as a covenant or warranty against the existence of any thereof. The terns and provisions of this Agreement shall extend to and be binding upon the parties, their respective heirs, successors, legal representatives and third party assigns, should Grantor consent to such third party assignments. Notwithstanding anything in this Agreement to the contrary, upon written notice, Grantee shall have the right, in its sole discretion, to assign this Agreement to any of its affiliates or subsidiaries. Additionally, Grantee may assign, on a non-exclusive basis, to Enterprise Gas Processing, LLC or another gas gatherer, transporter or purchaser, the rights granted herein to the extent of one pipeline authorized hereunder. All other assignments hereof shalt require Grantor's prior consent, which consent will not be unreasonably withheld. 21. MEMORANDUM OF EASEMENT AND RIGHT-OF-WAY: Grantee shall cause to be filled of record a fully executed and acknowledged original Memorandum of Easement and Right -of -Way, in a tbrm reasonably acceptable to Grantor and Grantee, and shall promptly provide to Grantor a recorded copy thereof. Such Memorandum shall be recorded in the appropriate real property records of the county in which the Subject Lands are located. IN WITNESS WHEREOF, the parties have executed this Easement and Right -of -Way Agreement the day and year indicated below but effective on the date first set forth above. PUC'KETT LAND COMPANY 5 016 5/24/2007 JAN -it -tone tt:OzYM PKUM-PUCKETT COMPANIES GRANTOR: PUCKETT LAND COMPANY y: Matthew A GRANTEE: urtzbacher, President MARATHON OIL COMPANY By: 303T731157 T-606 P 001/002 P-793 ACKNOWLEDGEMENTS STATE OF )ss COUNTY OF Fdwan.E /~/y"0$ Date: Date: Before me, on this /7i . day of 1,4A.44AY , 200'1, the foregoing instrument was executed by Matthew A. Wurtzbacher known to me to be the duly authorized President of Puckett Land Company, Grantor, and acknowledged said execution to be the signer's free and voluntary act and deed on behalf of said Grantor, for the uses and purposes therein set forth. Witness my hand and official My Commission Expires: `x/'44 F STATE OF )ss COUNTY OF Public RAYMOND S. ANDERSON 'NOTAtft Pur/t10' • COLORADO -My Cmnmra:on Dpnrs' o4 4nota Before me, on this day of , 2007, the foregoing instrument was executed by known to me to be the duly authorized , Grantee, and acknowledged said execution to be the signer's free and voluntary act and deed on behalf of said Grantee, for the uses and purposes therein set forth. Witness my hand and official seal. My Commission Expires: PUCKETr LAND COMPANY 5/2.3/2007 Notary Public 6 of 6 GRANTOR: PUCKETT LAND COMPANY By: Matthew A. Wurtzbacher, President Date: GRANTEE: MARATHON OIL COMPANY By: STATE OF f V APPROVED AS. TO CORM ACKNOWLEDGEMENTS COUNTY OF )ss /-- Date: Before me, on this day of , 2007, the foregoing instrument was executed by Matthew A. Wurtzbacher known to me to be the duly authorized President of Puckett Land Company, Grantor, and acknowledged said execution to be the signer's free and voluntary act and deed on behalf of said Grantor, for the uses and purposes therein set forth. Witness my hand and official seal. Notary Public My Commission Expires: STATE OF �xr� 5 )ss COUNTY OF j j(y T; ) Before me, on this r%J''N da of an,o,,...-. , 20(0/,'the foregoing instrument was executed by nnis / P‘:, 4 known`fo me to be the duly authorized /i 14r rr,a.t --.0A-- Re+- of in, ro.:iLh G ; 1 C.,v.,.3,,pt.„1 , Grantee, and acknowledged said execution to be the signer's free and voluntary act and deo i on behalf of said Grantee, tier the uses and purposes therein set forth. Witness my hand and official seal. Notary Public My Commission Expires: Ac,nj n, UEU,RAiU .�� ,1 NJCKEFT LAND COMPANY 5/24/2007 7.,; ; 6 01 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 1 1 JAN-U-ZUUe 1Z:03PM FROM-PUCKETT COMPANIES 3037731157 T-606 P 002/002 F-793 >;xninit ) WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS T 6S R 97 W PLAT FOR PROPOSED SECTION 23 PLAN OF DEVELOPMENT MAP P.O. 90X 820 GREEN RIVER, WYOMING 82935 J08 N0. 26099 09/12/07/CED SEC 23 PLAT.dwg REG 9 89.4 EAS N 8819'19" W 2636.2 --MARATHON/PDC PAD 697-23 W 79.84 CH. 550 EAST 2ND NORTH PH, 307-875-363$ FAX. 307-875-3640 VILLWS PAD ,v z V 17E N 01'40'44' E 129.6 UNE 76 LINE 15 TIE 5 01'4 1924, PAD 69 -23C COMPANY MEAS, N REC N 89.45 W 39.93 CH • FOUND CO SURVEY MARKER 0 MONUMENT NOT FOUND OR SEARCHED OGSTING ROAD PROPOSED CAS UNE PROPOSED WATER UNE Ex7S77NG PIPELINE PROPOSED MAIN CORRIDOR TPROPOSED PIPELINE `T 77'32' W 2639,9 REG 9 45' W 39.93 CH. LINE TABLE FOR MAIN CORRIDOR BEARING DIST. _LINE UNE 1 N 84'33'08" E 264.2 UNE 2 N 24'57'52" E 719.8 LINE 3 N 3712'49" E 286.9 LINE 4 N 45'44'50" E 276.6 UNE 5 N 4028'53- E 606.0 LINE 6 N 33-53'2r E 446.0 UNE 7 N 35'40'56" E 319.1 UNE 8 N 5618'01" E 450.1 LINE 9 N 4744'09- E 360.3 LINE 10 S 8528'31" E 347.1 LINE 11 N 7819'56" E 162.5 LINE 12 S 8111'11" E 674.6 UNE 13 N 8919'45" E 706.5 LINE 14 N 7828'16' E 712.5 LINE 15 N 4635'42" E 424.3 LINE 16 N 63'02'46° E 79.9 PREPARED FOR: MARATHON OIL COMPANY P.O. Box 3128 Houston. TX 77253 5555 San Felipe Houston. TX 77056 EASEMENT AND RIGHT-OF-WAY AGREEMENT THIS EASEMENT AND RIGHT-OF-WAY AGREEMENT is entered into and effective the Is` day of February, 2008, between Puckett Land Company, 5460 South Quebec Street, Suite #250, Greenwood Village, CO 80111 ("GRANTOR") and Marathon Oil Company, 5555 San Felipe, Houston, Texas, 77056 ("GRANTEE"). RECITALS A. Grantor represents but does not warrant that it owns an interest in the surface estate to the property described below ("Subject Lands") and located in Garfield County, State of Colorado described as follows: Township 6 South Range 97 West, 6t Principle Meridian Section 24: N/2NW/4 B. Grantee desires to obtain a pipeline easement ("the Easement") for the purpose of constructing, maintaining and operating up to four (4) pipelines for the gathering and/or transportation of oil, gas, water (fresh and produced) and other hydrocarbons across the Subject Lands. AGREEMENT In consideration of the foregoing recitals and the terms, covenants and conditions contained herein, Grantor and Grantee agree as follows: CONSIDERATION: For and in consideration of the sum of Ten Thousand Dollars ($10,000) and other good and valuable consideration, in hand paid, the receipt of which is hereby acknowledged, Grantor does hereby grant, bargain, sell and convey to Grantee the use of a right- of-way to install, maintain, operate and replace up to four (4) pipelines, which is herein recited and reflected on the attached Exhibit "A". PIPELINE & RIGHT-OF-WAY: An easement and right-of-way to construct, lay, maintain, modify, operate, alter, replace, remove pipelines as described herein, including but not limited to valves, regulators, meters, separators, purification equipment and pipelines with fittings, appliances, and appurtenant facilities. Staging areas are not granted under this easement. The pipelines shall be used for the transportation and processing of oil, natural gas, water (fresh and produced), petroleum products or any other liquids, gases or substances which can be transported through a pipeline and for no other purpose. The centerline of the route for the pipeline easement granted herein is depicted on Exhibit "A", attached hereto and made a part hereof. Said easement and right of way shall be fifty feet (50') in width, for a total distance of approximately one hundred forty-four rods (144 rods). The pipeline route as shown on Exhibit "A" is subject to change upon receipt of a final survey, a certified copy of which shall be provided to Grantor at no cost. During the construction of said pipelines, an additional, temporary easement totaling twenty-five (25) feet in width, comprised of an additional twelve and one-half (12.5) feet on each side of the easement centerline, is hereby granted. Except where Grantee's activities will interfere with irrigation ditches, streams or creeks, Grantee shall bury the pipeline with a minimum of forty-eight inches (48") of soil from the top of the pipeline to the normal surface of the ground. The affected areas shall be recontoured and reseeded with species which are consistent with adjacent, undisturbed areas upon completion of pipeline construction to prevent erosion. Grantee shall be permitted to cut all undergrowth and other obstructions that may injure, endanger or interfere with the use of said pipelines. Grantee may request from time to time, to lay within the right of way described above an additional line(s) of pipe similar to or different in size from and alongside of the line herein mentioned. Grantor reserves the right to approve such request on a case-by-case basis. Upon such approval Grantee shall pay Grantor, his heirs or assigns for each additional line a sum of money equal to the consideration paid for the first Pipeline and Right -of -Way easement within 30 days of such written approval. PUCKETT LAND COMPANY 1 of 6 11/01:2007 Grantor reserves the right to the full use and enjoyment of the Subject Lands except for the purposes herein granted. Such rights reserved to the Grantor may include the conducting of haying, irrigation, and grazing operations, and Grantee agrees to coordinate post construction and maintenance operations with haying and ranching operations. In no event shall the location of this Right -of -Way unreasonably interfere with use of the Subject Lands for commercial development of any kind, or oil, gas, and oil shale development. The foregoing rights and privileges of Grantee are further conditioned upon the following: 1. DAMAGES: Grantee shall either repair and/or pay Grantor for damages (if any) caused by its operations on the Subject Lands relative to growing crops, buildings, ditches, fences and livestock of Grantor or Grantor's surface lessees. If Grantee makes any fence cut on the Subject Lands, it will install and provide for secure closure of gates. All gates of any kind or nature shall be kept by Grantee in the condition in which they were found upon entry. If Grantee discovers an open gate then Grantee will close the gate and notify Grantor. All equipment or appurtenances to the pipeline or wells, which shall be on or above the surface of the ground, shall be installed in a manner to protect the livestock of Grantor or Grantor's surface lessee when necessary. Grantee shall not alter the natural flow of any creeks, streams, or irrigation ditches relative to the Subjects Lands. Grantee shall notify Ray Anderson with Puckett Land Company of any activity that may impact Grantor's use of the Subject Lands and adjoining acreage. OPENING AND RESTORATION OF FENCES: Opening and restoration of Grantor's fences shall be made at Grantee's sole cost, risk and expense as follows: 2.1. Prior to cutting grantor's fences, at each fence opening Grantee shall tie the existing fence into a three -post, pipe "H" brace built pursuant to the following specifications: 2.1.1. Eight foot (8') by six inch (6") treated posts shall be set at least forty-two inches (42") in the ground and shall be braced to take the strain. 2.1.2. Center crosses shall be placed a minimum of thirty-six inches (36") above the ground. 2.2. Grantee shall install fence stays every four feet (4') in all temporary gates installed in Grantor's fences. 2.3. Grantee shall install a fence around all mud pits. Said fence shall have pipe "H" braces with five wires. Grantee shall install posts every twelve feet. 2.4. Grantee shall be responsible for preventing Grantor's livestock from escaping from or enabling livestock of others from entering through any fence openings resulting from Grantee's construction activities. If a gate is left open, Grantee is responsible for the cost involved in gathering the cattle that escaped, including the actual costs for cowboy(s) needed to recover any escaped livestock plus reimbursement for any damages. If it is determined that the livestock can not be recovered within a cost effective amount of time, Grantee shall have the option of compensating the Grantor for the actual loss incurred due to the loss of livestock instead of continuing to attempt to recover the livestock. 2.5. Upon Grantee's completion of the construction, repair, maintenance, or alteration of the pipelines, Grantee shall promptly rebuild or repair any affected permanent fences equal to or better than the existing fence. Both Grantee and its contractors shall first consult and obtain Grantor's approval for location of fence work, materials and construction applications. Grantee shall use 1'/" staples, wood posts, Colorado Fuel and Iron (CF&1) heavy-duty steel posts and CF&I barbed wire to rebuild Grantor's fence and consult with Grantor for approval of the fence builders that will do the fence replacement. 2.6. Fences shall not be considered equal to the existing fence if the posts have been undercut or brush has been shoved into the fence. If Grantee has disturbed the ground, plowed mud, or added other material within three feet of a fence, it shall be Grantor's judg nent as to what fence is not equal to or better than the existing fence. 2.7. If requested in writing by Grantor, Grantee will also install pipe cattle guards of sufficient size and substance to bear Grantee's traffic and to turn all livestock. Such cattle guards shall not be installed without prior approval of Grantor and shall be installed in such a manner as to prevent water draining into the cattle guards, placed at a height so they are visible to cattle from reasonable distance, and shall be cleaned and otherwise maintained by Grantee. Quality metal gates shall be a minimum of ten feet in width, shall contain either a metal gate or electric fence and shall be placed across and adjacent to the cattle guards. I't 1(KETT LAND COMPANY 2 of 6 I 1/0112007 3. LIVESTOCK: If any of the Grantor's or Grantor's lessees' livestock are injured or killed by the direct or indirect actions of the Grantee or its employees, contractors, subcontractors or agents (such injury or death being verified by veterinary evidence), the Grantee shall pay the Grantor the veterinarian, medical or other costs to rehabilitate an injured animal, or reimburse Grantor or Grantor's lessee(s) the value of an animal killed or euthanased, according to the following schedule: 3.1. Cows: Replacement cost of a bred heifer or $1,000.00, whichever is greater; 3.2. Calves: Market value of 700 Ib. calf or $750.00, whichever is greater; 3.3. Bulls: $3,000.00 or the acquisition price for that animal, whichever is greater; 3.4. Dogs: Current market price or the acquisition price for that animal, whichever is greater. 3.5. Horses: Grantor shall maintain and provide to Grantee upon Grantee's written request, an Inventory of its horses as well as the horse's market value. Grantee agrees to reimburse Grantor the value of the horse based on the Inventory in the event the horse is killed by the direct or indirect actions of the Grantee. 3.6. Other domesticated Livestock: Then -current market price or the acquisition price for that animal, whichever is greater. 4. MAINTENANCE: All access roads, fences, and gates impacted by Grantee's use or operations which are subject to this Agreement shall be maintained by Grantee in as good condition as exists at the time of execution of this Agreement, ordinary wear and tear excepted. Grantor shall give Grantee written notice of degradation or damage to the Subject Lands caused by Grantee's operations. 5. WEED CONTROL: Grantee shall be responsible for controlling all noxious weeds, including without limitation, halo Eton, cocklebur, Canada thistle, knapweed species, leafy spurge, houndstounge, musk thistle and whitetop species on lands disturbed hereunder. Grantee shall also be responsible for preventing such noxious weeds from spreading to Grantor's lands adjacent to the easement. In the event such noxious weeds spread to Grantor's lands adjacent to the lands subject to the easement granted herein, Grantee shall be responsible for controlling the noxious weeds of those lands as well, provided that those portions of the Subject Lands affected by the construction of the right-of-way were free of such noxious weeds prior to such time of construction. If the lands immediately adjacent to the right-of-way are not free of such noxious weeds prior to construction of the same, Grantee's responsibility shall be limited to reasonable control of such noxious weeds on the lands within the easement. if Grantee locates or Grantor notifies Grantee of location of noxious weeds on the right-of-way, Grantee shall implement control procedures before noxious weeds go to seed. Grantee's responsibility for weed control shall be ongoing and shall continue for three (3) years after the easement has ceased to be used by the Grantee for the purposes herein granted. Such control procedures as set forth above shall at the very minimum conform to those established by the Bureau of Land Management. 6. NON-EXCLUSIVE USE AND RESERVATIONS: This Agreement and all other rights hereby granted are not exclusive to Grantee and are limited to the specific grant herein. This Agreement does not, in any way whatsoever, convey any water rights or the right to use water. Grantor reserves unto itself and its successors and assigns all rights not specifically granted to Grantee herein. Grantor may grant additional rights-of-way or easements on, over, across, under and/or through the Right -of -Way to any third party for any reason, in Grantor's sole and absolute discretion, so long as such grant does not interfere with Grantee's access rights as described in this Agreement. 7. AGRICULTURAL LIABILITY: Grantee shall take reasonable precautions to avoid damage to agricultural operations on or adjacent to the easement. Grantee shall have and assumes liability for all cattle, crops, or chattel lost as a result of Grantee's operations on the Subject Lands. 8. LOCAL SPECIES/HABITAT LIABILITY: Grantee shall have and assumes liability for all endangered species, protected species. wildlife habitat and bio -diversity damaged or destroyed as a result of Grantee's operations on the Subject Lands. 9. CULTURAL AND PALEONTOLOGICAL RESOURCES: Grantee is to engage the services of a cultural resource specialist to conduct a cultural resource inventory of the area of proposed surface disturbance following the guidelines of the Bureau of Land Management. Any and all resources inventoried shall be delivered to the Grantor. PUCKETT LAND COMPANY 3 of b 11/0122007 10. LIABILITY OF THE PARTIES: Grantee covenants and agrees to fully defend, protect, indemnify and hold harmless Grantor, its officers, directors, employees and agents, from and against each and every claim, demand or cause of action and liability, cost and/or expense (including but not limited to reasonable attorney's fees and costs incurred in defense of Grantor, its officers, directors, employees and/or agents), for damage or loss in connection therewith, which may be made or asserted by Grantee, Grantee's officers, directors, partners, members, employees and/or agents, or which may be asserted by any third party (including but not limited to Grantor's officers, directors, employees and/or agents), on account of personal injury or death or property damage caused by Grantee's use of the Subject Lands or the rights granted hereunder, except to the extent such damage or injury results from the actions of Grantor, its contractors, agents or assigns. Where personal injury, death, or loss of or damage to property is the result of the joint actions of Grantor or Grantee, Grantee's duty of indemnification shall be in proportion to its allocable share of such action. It is expressly agreed that the indemnity obligation specifically includes, but is not limited to, claims arising under the provisions herein entitled Agricultural Liability above, and all federal laws and regulations including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A. &9601 et. seq. and amendments, Resources Conservation and Recovery Act, 42 U.S.C.A. &6901 et. seq. and amendments, Safe Water Drinking Act, 42 U.S.C.A. 300f et. seq. and amendments, Toxic Substances Control Act, 15 U.S.C.A. &2601 et. seq. and amendments, Clean Water Act, 33 U.S.C.A. &1251 et. seq. and its amendments, Clean Air Act, 42 U.S.C.A. & 7401 and amendments, Natural Gas Pipeline Act, 49 U.S.C.A. 1671 et. seq. and amendments, Hazardous Liquid Pipeline Safety Act, 49 U.S.C.A. 2001 et. seq. and amendments, and all state and local environment laws, rules, and regulations. Neither party shall be liable to the other for any damages due to fire, earthquake, flood, windstorm and other like casualty or other causes beyond its reasonable control, nor for damages caused by public improvements or condemnation proceedings. Notwithstanding the foregoing, neither party shall be required to settle a labor dispute against its will. 11. LAWS, RULES, AND REGULATIONS: Grantee shall at its sole expense comply with all federal laws and regulations as well as those of the State of Colorado and any other governmental authority having jurisdiction over Grantee's activities on the Subject Lands. Grantee shall deliver to Grantor copies of all permits, and cultural, botanical, and wildlife reports covering Grantor's land and adjoining Bureau of Land Management land. 12. DRUGS, ALCOHOL AND FIREARMS: Grantee shall not allow the use, possession, transfer, purchase or sale of illegal drugs, narcotics, or other unlawful substances and materials by Grantee or its contractors, sub -contractors, agents, while on the Subject Lands or adjacent lands. The use, possession, transfer, purchase or sale of alcoholic beverages, firearms and other weapons upon the Subject Lands or adjacent lands is absolutely prohibited. 13. HUNTING AND FISHING: No hunting, trapping or fishing is permitted on the Subject Lands or adjacent lands and no such rights are granted by this Agreement. 14. WATER RIGHTS NOT CONVEYED: This Agreement does not, in any way whatsoever, convey to Grantee any water rights or the right to use water found on, under or appurtenant to the Subject Lands. 15. WATER AND DRAINAGE: Grantee shall have and hereby assumes absolute liability for damages to water wells, water tables, natural springs, running watercourses, and water tanks within 330' of the center line of the right-of-way insofar as damage can reasonably be determined to be the result of Grantee's operations. 16. ACCESS TO PIPELINE: Grantee agrees to install a tap on said pipeline in TBD (legal description). Grantee agrees to accept Grantor's gas at the tap on a best efforts basis. Grantor's gas must be of pipeline quality. Grantee and Grantor shall negotiate a gas gathering and processing agreement at rates not to exceed the rate charged by Grantee for other third party services in the area for like quality gas. 17. NOTICE: Any notice or written demand to be given to Grantor or Grantee may be delivered in person, by fax or certified or registered mail, postage prepaid, addressed to the PUCKE 1 LAND COMPANY 4 of 6 11/01,2007 party for whom intended. Notice shall be deemed given upon receipt. Puckett Land Company Attn: Ray Anderson 5460 S. Quebec St., Suite 250 Greenwood Village, CO 8011 ] Phone: 303-773-1094 Fax: 303-773-1157 Marathon Oil Company Attn: Piceance Asset Manager 5555 San Felipe Houston, TX 77056 Phone: 713-296-3020 Fax: 713-235-6311 18. TERM: This Agreement shall remain in effect for a primary term ending December 31, 2009, and for so long thereafter as Grantee is using the Easement for the purposes described above. If, after this primary term, operations for the transportation of natural gas cease for a period of more than twenty-four (24) consecutive months, then such operations shall be deemed not to be conducted and this Agreement shall terminate, except when non- use is caused by acts or circumstances beyond the control of Grantee. Following termination of this Agreement, it shall be Grantee's obligation to restore and reclaim all land affected by Grantee's activities to the extent required by applicable law or regulation established by the Bureau of Land Management or to its equivalent prior condition (ordinary wear and tear expected), whichever is greater, including, but not limited to, the removal of surface facilities. 19. GOVERNING LAW: This Agreement and all matters pertaining hereto, including, but not limited to, matters of performance, non-performance, breach, remedies, procedures, rights, duties, and interpretation or construction, shall be governed and determined by the laws of the State of Colorado. 20. MISCELLANEOUS: This Agreement contains the entire agreement between Grantor and Grantee and any prior oral representations or understanding concerning this Agreement or its subject matter shall be of no force and effect. This Agreement is subject to all currently existing contracts, leases, liens, easements and encumbrances or claims of title, which may affect the Subject Lands, and nothing contained herein shall be construed as a covenant or warranty against the existence of any thereof. The terms and provisions of this Agreement shall extend to and be binding upon the parties, their respective heirs, successors, legal representatives and third party assigns, should Grantor consent to such third party assignments. Notwithstanding anything m this Agreement to the contrary, upon written notice, Grantee shall have the right, in its sole discretion, to assign this Agreement to any of its affiliates or subsidiaries. Additionally, Grantee may assign, on a non-exclusive basis, to Enterprise Gas Processing, LLC or another gas gatherer, transporter or purchaser, the rights granted herein to the extent of one pipeline authorized hereunder. All other assignments hereof shall require Grantor's prior consent, which consent will not be unreasonably withheld. 21. MEMORANDUM OF EASEMENT AND RIGHT-OF-WAY: Grantee shall cause to be filled of record a fully executed and acknowledged original Memorandum of Easement and Right -of -Way, in a form reasonably acceptable to Grantor and Grantee, and shall promptly provide to Grantor a recorded copy thereof. Such Memorandum shall be recorded in the appropriate real property records of the county in which the Subject Lands are located. IN WITNESS WHEREOF, the parties have executed this Easement and Right -of -Way Agreement the day and year indicated below but effective on the date first set forth above. GRANTOR: PUCKETT LAND COMPANY !/"(44.(14(1417'y: Matthew A.rtzbacher, President Date: PUCKETT LAND COMPANY 5 of 6 11/01;2007 RAYMOND a. ANDERSON 'NOTArr/ YJt1UC - COLORADO Ay Corm itsw. Expx a' O4»4/20 GRANTEE: MARATHON OIL COMPANY „Q -9-ams By: r' Jon D. Wilcox Date: Attorney -In -Fact ACKNOWLEDGEMENTS STATE OF ( COUNTY OF 'An la At., J )ss Before me, on this /s 7 day of=dn- ,,.,.c,, , 2008, the foregoing instrument was executed by Matthew A. Wurtzbacher known to me to be the duly authorized President of Puckett Land Company, Grantor, and acknowledged said execution to be the signer's free and voluntary act and deed on behalf of said Grantor, for the uses and purposes therein set forth. Witness my hand and official seal. My Commission Expires: z//v/2-06 STATE OF -T J )ss COUNTY OF Before me, on this r /-i f ‘ day of % e 1-1,1, .., ,."- , 2008, the foregoing T ,, -- instrument was executed by D • l , : 1. ,�. known to me to be the duly authorized ' Grantee, and acknowledged JA Fec;t'z-i� 111,.,. #� ., G'. 1�...r"" g said execution to be the signer's free and voluntary act and deed on behalf of said Grantee, for the uses and purposes therein set forth. Witness my hand and official seal. My Commission Expires: PUCKETT LAND COMPANY 11101;2007 Nii`lbltc YARUSLAVA A MARTIN Z Notary Public, State of Texas My Commission Expires OotobOr 13, 2010 6 of 6 P.O. BOX 820 WILLIAM H. SMITH & ASSOCIATES P.C. SURVEYING CONSULTANTS GREEN RIVER, WYOMINC 82935 T 6 5 R 97 W PLAT FOR PROPOSED SECTION 24 PLAN OF DEVELOPMENT MAP O Q ° 1 NItki 0 ■ O I■I N EXISTING BURRIED PIPELINE UNE 3 MEAS. N 88'02'07' W 2637.6 REC N 89'4,5' W 39.93 CH. 4JNE 1 PROPOSED 'LINE 2 CENTER UNE 50' R -0-W REC. N 8955' W 39.885 CH. LEGEND EXISTING BURRIED PIPELINE EXISTING ROAD NE 3' 2 4' O MONUMENT NOT FOUND OR SEARCHED • FOUND GLO SURVEY MARKER EXISTING BURIED PIPELINE CENTER UNE PROPOSED 50' R -0-W JOB NO. 26099 01/23/08 CED NEW SEC 24 PLAT REVISED.dwg MEAS. N 88'1'21' W 2624.4 REC. N 89'45' W 39.93 CH. REC. N 89'55' W 39.885 CH. LINE TABLE FOR MAIN CORRIDOR LINE BEARING DIST. LINE 1 N 63'03'14" E 113.1 LINE 2 S 88'02'07` E 1980.6 LINE 3 N 4437'55" E 102.0 LINE 4 N 66'34'23" E 174.9 550 EAST 2ND NORTH PH. 307-875-3638 FAX. 307-875-3640 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 J, MM Oil Company Marathon September 18, 2008 Berry Petroleum Company 1999 Broadway, Suite 3700 Denver, CO 80202 Attn: Mary Ann Adams Peggy A. Gilbert, C.P.L. Senior Land Professional U.S. Land U.S. Production P. O. Box 3487 Houston, Texas 77253-348 5555 San Felipe Houston, TX 77056-2725 Telephone 713/296-3333 Fax: 713/499-6769 Email: pgilbertaMarathonOil.com Re: Pipeline Development Plan Permit for Garfield County, Colorado Gentlemen: On behalf of Berry Petroleum Company ("Berry") and Marathon Oil Company ("Marathon"), Marathon is requesting a Garfield County Pipeline Development Plan Permit for pipelines which may be comprised of fresh water, produced water and/or gas lines and appurtenant facilities that are located on surface acreage that is jointly owned by Berry and Marathon in Garfield County, Colorado as reflected on ATTACHMENT 1, attached hereto and made a part hereof. Marathon respectfully requests permission from Berry to pursue a Pipeline Development Plan Permit for the fresh water, produced water lines and/or gas lines and appurtenant facilities. Please indicate your permission by signing in the space provided below. Sincerely, .///t Matthew R. Vezza Asset Manager Pag PERMISSION IS HEREBY GRANTED TO MARATHON OIL COMPANY TO OBTAIN A PIPELINE DEVELOPMENT PLAN PERMIT ON THE LANDS DESCRIBED ABOVE AND ALSO REFLECTED ON ATTACHMENT 1, ATTACHED HERETO AND MADE A PART HEROF. BERRY R, j EUM COMPANY By: Name & Title: 1c j M.4^/4 r' -A Berry's execution of this permission request by Marathon does not waive Berry's rights for approval as to the surface lands located above Berry's leasehold acreage pursuant to Surface Sharing Agreement dated June 26, 2007 by and etween Berry Petroleum Company and Marathon Oil Company. 21 910000 ' CHE SSA INP, Jt r./ 2300015. >AAN1 OIL'S -'CAS' (USA) lJ 1 { 17, ._.' 213532100009) BERRY PETROLEUM &`M`A -_213533400010 CHEVRON USA INC 2135343009 REAUOFLAND M 7, NAGE F / 4 i / 21044'.'003_ I` XYj'USA:. • �� - 21690200019 THER, RICHARD' L., LYLE & NED 1/3 IN • 6$97W, j i l 216v101,0 ! 101A ! O20 XY USA"' C:-1./33 x93.06 2169012000 LATHAM, THOMAS F ARATHON 0 _:,.CHEV217118200008 216912200012 CHEVRON USA INC { Legend 0 400800 1,600 2,400 3,200 4,000 4,800 Feet ■�� Proposed Pipeline ROW Q Manifold& Pump Location Exsiting Private Roads Parcels Parcel 213532100009 Parcel 216901100027 Marathon Lease 1 inch equals 1,600 feet ATTACHMENT 1 - PIPELINE ROW MAP GAS & WATER LINES MARATHON OIL CO GARFIELD COUNTY, COLORADO REVISION DATE. 06/12/00 REVISION NUMBER 01 DRAW' BY DD APPROVED BY DO PROJECT # EG07149 SCAI E AS SHOWN_ AdleftwileAtilh: CORDILLERAN 1 1 1 1 1 1 1 11IIIIVilttrirl#11,1411.141141Crili ltIrai 11111 Reception#: 743397 02/22/2008 03:55:15 PM Jean Rlberico 1 of 4 Rec Fee:$21.00 Doc Fee 0.00 GRRFIELD COUNTY CO When recorded return to: Peggy Gilbert Marathon Oil Company 5555 San Felipe Room 1453 Houston, TX 77056 WATER RIGHTS DEED THIS DEED made as of the 17i11 day of December, 2007, between BERRY PETROLEUM COMPANY, a Delaware corporation ("Grantor"), whose legal address is 950 17th Street, Suite 2400, Denver, Colorado 80202 and MARATHON OIL COMPANY, an Ohio corporation, ("Grantee") whose legal address is 5555 San Felipe, Houston, Texas 77056: WITNESSETH, that Grantor, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, hereby sells and conveys to the Grantee, its successors and assigns forever the following water rights in the County of Garfield, State of Colorado, to wit: An undivided one-half of 100% (being an undivided 50%) interest in and to the water and water rights, whether tributary, non -tributary or not non -tributary, whether adjudicated or unadjudicated, absolute or conditional, and all ditches and ditch rights, water wells and well rights, State Engineer filings, well registration statements and well permits, water taps, reservoirs and reservoir rights, all decrees and pending water and pending water court applications, and all water company and mutual ditch or reservoir company stock, which are, have been, or may be used onor in connection with, or are appurtenant to, or located on or underlying, or in anyway associated with the real property described in EXHIBIT "A" attached hereto and incorporated herein by this reference, including but not Iimited to the adjudicated springs described on EXHIBIT "B" attached hereto and incorporated herein by this reference. Together with all easements, rights of way, reservoirs, reservoir rights, permits and licenses appurtenant to or used in connection with the water rights described on EXHIBIT "B". above. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth BERRY P "� ' O Delawar- , orp , . By,..A4/24.1 It A !, UM COMPANY, on itt ■IB 111.11riTHII IL I.c i , +r 1&i , r tiWIN 11111 Reception#: 743397 02/22/2008 03:55:15 PM Jean Alberico 3 of 4 Rec Fee:$21.00 Doc Fee:0.00 GARFIELD COUNTY CO EXHIBIT A LEGAL DESCRIPTION Parcel 1 Township 5 South, Range 96 West of the 6th P.M. Section 29: Sin S1/2 Section 32: NE1/4 NEN, NW1/4, N1/2 SW1/4, SE1/4 SW1/4. W1/2 NE1/4. (part of) Tax Parcel No. 213532100009 Parcel 2 Township 5 South, Range 96 West of the 6th P.M. Section 32: SEN Section 33: SWI/4 (remaining part of) Tax Parcel No. 213532100009 Parcel 3 Township 6 South, Range 97 West of the 6th P.M. Section 1: Lots 10, 11, 12, 15, 17, 18, 19, 22, 23 and 24 (part of) Tax Parcel No. 216901100027 County of Garfield, State of Colorado ■iiihriif'in:EN Nil .1411 T 'V II"IA,16,11,1. IN 1111 Reception#: 743397 02/22/2008 03:55:15 PM Jean Rlberico 4 of 4 Rec Fee:$21.00 Doc Fee -0.00 GARFIELD COUNTY CO EXHIBIT B ADJUDICATED SPRINGS Those rights decreed in District Court Water Division No. 5, Case No. 88CW289, for Latham Springs Nos. 1, 2 and 3, and Redd Springs Nos. 3 and 4 The location of the point of diversion, source and amount claimed for each spring is as follows: LATHAM SPRING NO. 1 is located in SW1/4SW1/4 Section 29, Township 5 South, Range 96 West of the 6th P.M., 100 feet from South Section line of Section 29 and 1,200 feet East of West Section line of Section 29. Source of water — spring tributary to West Fork of Little Creek which is a tributary of Light Gulch which is a tributary of Parachute Creek which is a tributary to the Colorado River. Amount of water — 0.004 c.f.s., absolute. LATHAM SPRING NO. 2 is located in NWI/4NE1/4 Section 32, Township 5 South, Range 96 West of the 6th P.M., 2,300 feet West from East Section line and 925 feet South of North Section line. Source of water — spring tributary of Little Creek which is a tributary of Light Gulch which is a tributary of Parachute Creek which is a tributary of the Colorado River. Amount of water — 0.007 c.f.s., absolute. LATHAM SPRING NO. 3 is located in SEI/4SEI/4 Section 29, Township 5 South, Range 96 West of the 6th P.M., 1,050 feet West of East Section line and 900 feet North of South Section line. Source of water — spring tributary of Little Creek which is a tributary of Light Gulch which is a tributary of Parachute Creek which is a tributary to the Colorado River. Amount of water — 0.006 c.f.s., absolute. REDD SPRING NO. 3 is located in SW1/4SW1/4 Section 32, Township 5 South, Range 96 West of the 6th P.M., 70 feet East of West Section line and 15 feet North of South Section line. Source of water — spring tributary to Houselog Gulch which is a tributary to Red Gulch which is a tributary to Parachute Creek which is a tributary to the Colorado River. Amount of water — 0.004 c.f.s., absolute. REDD SPRING NO. 4 is located SW1/4SW1/4 Section 33, Township 5 South. Range 96 West of the 6th P.M., 30 feet East of West Section line and 900 feet North of South Section line. Source of water — spring tributary of Houselog Gulch which is a tributary to Red Gulch which is a tributary of Parachute Creek which is a tributary of the Colorado River. Amount of wter — 0.008 c.f.s., absolute. The use of the water for each spring is watering of livestock and domestic on-site consumption. The date of initiation for each spring is 1935. Garfield County, Colorado 3741247 1.DOC 1 1 Iiirtruawiattc ,itimmt.fov4;,ow 11111 Reception8: 743398 02/22/2008 03.55 15 P11 Jean Albertco 4 of 4 Rec Fee $21 00 Doc Fee 0 00 GARFIELD COUNTY CO 11. Conveyance to Ruth Latham of an undivided one-half interest in and to all minerals owned by Latham Ranches in Warranty Deed recorded August 20, 1987 in Book 719 at Page 510, and any and all interests therein or assignments thereof. 12_ Lack of a right of access to and from the subject property. 13. Reservation by Thomas A. Latham, Karen Lee Latham and Ginger Latham of a non-exclusive easement, as more fully described in Special Warranty Deed recorded November 15, 2006 in Book 1863 at Page 981. and Personal Representative Deed recorded November 15. 2006 in Book 1863 at Page 984. 14. Rights of Chevron Shale Oil Company under die Connected Road Right - of -Way Grant and Easement dated effective November 14, 2006, and recorded December 6, 2007 at Reception No. 738783, Garfield County, Colorado. 15. Rights of Williams Production RMT Company under the Connected Road Right -of -Way Grant and Easement dated effective November 14, 2006, and recorded December 6, 2007 at Reception No. 738784, Garfield County, Colorado. 3741163_3. Doc 111111 if ittir.1 i CL !it4filNOtilKril.lta14ih ill 11111 Reception#: 743398 02/22/2009 03 55 15 PM Jean Alberico 3 of 4 Rec Fee $21 0D Doc Fee 0 00 GARFIELD COUNTY CO EXHIBIT "B" PERMITTED EXCEPTIONS 1. Rights or claims of parties in possession not shown by the public records. 2. Easements, or claims of easements, not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts, which a correct survey and inspection of the premises would disclose, and which are not shown by the public records. 4. Taxes and assessments for 2007 and subsequent years. a lien not yet due or payable. 5. Any and all water rights, claims, or title to water, whether or not the matters excepted are shown by the public record. 6. Right of way for ditches or canals constructed by the authority of the United States, as reserved in United States Patent recorded January 16. 1925 in Book 112 at Page 424 and reservation of all oil and gas, together with the right to prospect for, mine and remove the same pursuant to the provisions and limitations of the Act of July 17, 1914 in said Patent, and any and all interests therein or assignments thereof. 7. Right of way for ditches or canals constructed by the authority of the United States, as reserved in United States Patent recorded May 14, 1940 in Book 194 at Page 615 and reservation of all coal and other minerals, together with the right to prospect for, mine and remove the same pursuant to the provisions and limitations of the Act of December 29, 1916 in said Patent, and any and all interests therein or assignments thereof. 8. Right of way for ditches or canals constructed by the authority of the United States, as reserved in United States Patent recorded January 28. 1943 in Book 208 at Page 138 and reservation (>f all coal and other minerals, together with the right to prospect for, mine and remove the same pursuant to the provisions and limitations of the Act of December 29. 1916 in said Patent, and any and all interests therein or assignments thereof. Reservations, conditions and stipulations contained in the United States Patent No. 1431391 recorded April 10, 1951 in Book 257 at Page 543 including, but not limited to the following: • That the grant hereby made is restricted in its exterior limits to the boundaries of the said mining premises, and to any veins or lodes of quartz or other rock in place bearing gold, silver. cinnabar, lead, tin, copper and other valuable deposits which may have been discovered within said limits subsequent to and which were not known to exist on July 12, 1949. • That should any vein or lode of quartz or other rock in place bearing gold, silver, cinnabar, lead, tin, copper or other valuable deposits, be claimed or known to exist within the above-described premises at said last-named dated, the same is expressly excepted and excluded from these presents. • Right of way for ditches or canals constructed by the authority of the United States. 10. Reservation of all minerals, together with the right to prospect for, mine and remove the same as reserved by Redd Ranches in Warranty Deed recorded December 20. 1963 in Book 355 at Page 5, and any and all interests therein or assignments thereof. 1111 li a.11111F.NiPill,1111,V.1011 iM1 11111 Reception#: 743398 02/22/2008 03 55 15 PM Jean Plbertco 1 of 4 Rec Fee $21 00 Doc Pee 0.00 GARFIELD COUNTY CO When recorded return to: Peggy Gilbert Marathon Oil Company 5555 San Felipe Room 1453 Houston, TX 77056 SPECIAL WARRANTY DEED THIS DEED, made this 17th day of December. 2007. between BERRY PETROLEUM COMPANY, a Delaware corporation. ("Grantor") whose legal address is 950 17th Street, Suite 2400, Deriver. Colorado 80202 and MARATHON OIL COMPANY, an Ohio corporation. ("Grantee") whose legal address is 5555 San Felipe. Houston, Texas 77056: WITNESSETH, That the Grantor, for and in consideration of the sum of One Million, Two Hundred Fifteen Thousand, Ten and 48/100 Dollars ($1,215,010.48), the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed. and by these presents does grant, bargain. sell, convey and confirm unto the Grantee, its successors and assigns forever. as a tenant in common, an undivided one-half of 100% (being an undivided 50%) interest in and to all of the real property, together with improvements, all rights associated therewith. and any after acquired interest (collectively "Property"), if any, situate, lying and being in the County of Garfield, State of Colorado, described on EXHIBIT "A" attached hereto and by this reference made a pan hereof. Also known by street and number as: vacant land. TOGETHER with all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof; and subrogation of Grantee to the rights of Grantor under all the covenants and warranties of title with respect to the Property previously made by others in the chain of title: and al] the estate. right. title, interest, claim and demand whatsoever of the Grantor. either in law or equity, of, in and to the Property, SUBJECT TO the Permitted Exceptions set forth on EXHIBIT "B", attached hereto and by this reference made a part hereof; TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the grantee. its successors and assigns, forever. as tenants in common. The Grantor. for itself and it's successors and assigns, does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND the above -bargained premises in the quiet and peaceable possession of the Grantee. its successors and assigns. against all and every person or persons claiming the whole or any part thereof, by, through or under Grantor. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. STATE OF COLORADO ) ss. CITY AND COUNTY OF DENVER ) BERRY PE „�+te�+r LE,UM COMPANY, a Delaware,&por :nn 40. 1111 p wow The foregoing instrument was acknowledged before me on this 4J" day of fiaRvilrey , 2008, by Dan Anderson as Vice President -Production of BERRY PETROLEUM COMPANY, a Delaware corporation. WITNESS my hand and official seal. My conunission Expires: S - 8 -2�,/ Notary Public CORDILLERAN September 18, 2008 Noise Analysis - Marathon Oil Company Water Pumps 826 21 '/2 Road Grand Junction, CO 81505 T: 970.263.7800 F: 970.263.7456 A noise analysis has been completed for Marathon Oil Company (MOC) for pumping equipment associated with fresh and produced water lines. The only sound -generating equipment associated with this project is two (2) natural-gas driven pumps. Based on the specifications received from the manufacturer of these pumps (Attachment A), the sound generated by each pump is 100.1 db(A) measured at 1 meter from the pump. These pumps will be installed within a pole -barn type building and will be located approximately 950 feet from the nearest property boundary, over 3.5 miles from County Road 215, and approximately 3.7 miles from the nearest permanently -occupied residence. There are also approximately 2,500 feet of elevation difference between the proposed location for the pumps and the nearest public road (CR 215) and the nearest residence. Sound pressure levels, measured in decibels (db), are logarithmic and cannot be added in the usual arithmetic way. For two sources emitting the same noise level, each additional source contributes 3 db to the resulting sound pressure level. Therefore, the combined sound pressure level of the three pumps installed at this facility would be 103.1 db(A), measured 1 meter from the pumps. The calculated sound pressure level at 350 feet from the pumps, as specified in COGCC Rule 802, will be approximately 62.5 db(A) (see Attachment B). Note that this distance is less than the distance from the pumps to the nearest property boundary and the decrease in sound pressure level does not account for any additional decrease in sound pressure level resulting from the building that will be constructed over the pumps. Similarly, the sound pressure level at the nearest property line, approximately 950 feet from the pumps, would be approximately 53.9 db(A). As prescribed in COGCC Rule 802, in remote locations, where there is no reasonably proximate occupied structure or designated outside activity area, the light industrial standard may be applicable. Therefore, both sound pressure levels are below the applicable Colorado noise standard. Based on the information provided above, it is reasonable to expect that the operation of Marathon Fresh Water Pumping Facility will not exceed the applicable Colorado noise standards. 4 g'Jennison sociate Geologist Cordilleran Compliance Services, Inc. 826 21 '/2 Road Grand Junction, CO 81505 Enclosures — Attachment A — Manufacturer's Specifications for Pumps Attachment B — Noise Attenuation Calculations Cordilleran Compliance Services. Inc. Grand Junction, CO • Denver. CO Environmental Consulting Engineers and Scientists Engine Performance Data Cummins Inc Columbus, Indiana 47202-3005 http://www.cummins.com Industrial GTA8 3SLB FR92280 175 BHP (130 kW) @ 1800 RPM 511 Ib -ft (693 N -m) @ 1800 RPM Configuration D553012CX03 CPL Code Revision 2095 1 -May -2008 Compression Ratio: Fuel System: Emission Certification: 8.5:1 Displacement: 505 in3 (8.3 L) Field Gas, Dry Processed Nat Gas Aspiration: Turbocharged and Aftercooled Emissions data capable of meeting 2008 NSPS Standards All data is based on the engine operating with fuel system, water pump, and 8 in H2O (1.99 kPa) inlet air restriction with 4 in (102 mm) inner diameter, and with 1 in Hg (3 kPa) exhaust restriction with 4 in (102 mm) inner diameter; not included are alternator, fan, optional equipment and driven components. Coolant flows and heat rejection data based on coolants as 50% ethylene glycol/50% water. All data is subject to change without notice. Rating Type: Continuous/WMR .0 I' I� I 6 500 450 F°. 400 350 • — 700 — 650 — 600 550 — 500 1000 1200 1400 1600 1800 Engine Speed (RPM) Torque (N -m) 150 — 50 { I 1 1 1 I { I 1000 1200 1400 1600 1800 Engine Speed (RPM) — 140 --- 120 — 100 — 80 3 0 — 60 — 40 Fuel Consumption (BTU/hp-hr) 14000 — 12000 10000 — 8000 Torque Output RPM Ib -ft N -m 1,000 377 511 1,100 386 523 1,200 395 536 1,300 423 574 1,400 450 610 1,500 471 639 1,600 492 667 1,700 501 679 1,800 510 691 Power Output RPM hp kW 1,000 72 54 1,100 81 60 1,200 90 67 1,300 105 78 1,400 120 89 1,500 135 101 1,600 150 112 1,700 162 121 1,800 175 130 Fuel Consumption @ 1,800 RPM — 20 hp kW % Load BTU/hp-hr MJ/kW-hr — 18 _ 175 130 100 8,150 11.53 156 116 90 8,302 11.75 IN\ ° 140 104 80 8,543 12.09 — 16 " 123 92 70 8.659 12.25 105 78 60 8,810 12.46 — 14 88 66 50 9,198 13.01 —�— — 12 M 70 52 40 9,764 13.81 53 40 30 10,568 14.95 Fu€ 20 40 60 80 100 35 26 20 11,723 16.59 Load (%) 18 13 10 13,645 19.3 Data represents gross engine capabilities obtained and corrected in accordance with SAE J1995 and ISO 3046 conditions of 29.61 in Hg (100 kPa) barometric pressure [500 ft (152 m) altitude], 77 °F (25 °C) inlet air temperature and 0.30 in Hg (1 kPa) water vapor pressure using dry processed natural gas fuel with 930 BTU per standard cubic foot lower heating value. Deration may be required due to altitude. temperature and type of fuel. Consult Cummins Customer Engineering for operation above this altitude. STATUS FOR CURVES AND DATA: Limited -(measured data) CHIEF ENGINEER: TOLERANCE: Within +/- 5 % Alfred S Weber Cummins Confidential FR92280 (Continued) Page: 2 1 Maximum allowable air temperature rise over ambient at Intake Manifold (Naturally Aspirated Engines) or Turbo Compressor inlet (Turbo -charged Engines): (This parameter impacts emissions, LAT and/or altitude capability) 30 delta deg F 16.7 delta deg C Low Temperature Aftercooling System Coolant temperature from the Aftercooler outlet @ Maximum engine coolant out temperature at Limiting Ambient Temperature Maximum coolant temperature into the Aftercooler @ 25C (77F) ambient Maximum coolant temperature into Aftercooler @ Limiting Ambient conditions 130 deg F 54 deg C Maximum coolant temperature for engine protection controls 215 deg F 102 deg C Maximum coolant operating temperature at engine outlet (max. top tank temp): 212 deg F 100 deg C Intake Air System Exhaust System Maximum exhaust back pressure: Recommended exhaust piping size (inner diameter): Lubrication System Nominal operating oil pressure @ minimum low idle @ maximum rated speed Minimum engine oil pressure for engine protection devices @ minimum low idle Fuel System Minimum fuel inlet pressure: Maximum fuel inlet pressure: Performance Data Engine low idle speed: Maximum low idle speed: Minimum low idle speed: Engine high idle speed Governor break speed: Maximum torque available at closed throttle low idle speed: Engine Speed Output Power Torque Intake Manifold Pressure Turbo Comp. Outlet Pressure Turbo Comp. Outlet Temperature Inlet Air Flow Charge Air Flow Exhaust Gas Flow Exhaust Gas Temperature Heat Rejection to Coolant Heat Reject to Aftercooler Coolant Heat Rejection to Ambient Heat Rejection to Exhaust Fuel Consumption Air Fuel Ratio (dry) Ignition timing (BTDC) Total Hydrocarbons NonMethane Hydrocarbons NOx CO CO2 02 2 in -Hg 4 in 10 psi 50 psi 7 kPa 102 mm 69 kPa 345 kPa 10 psi 69 kPa 7 psi 25 psi 900 RPM 1,800 RPM 800 RPM 1,800 RPM 50 lb -ft 48 kPa 172 kPa 68 N -m 100% Load 75% Load 50% Load 1,800 RPM 1,800 RPM 1,800 RPM 175 hp 130 kW 131 hp 98 kW 88 hp 66 kW 511 lb -ft 693 N -m 382 Ib -ft 518 N -m 257 Ib -ft 348 N -m 32 in -Hg 108 kPa 20 in -Hg 68 kPa 9 in -Hg 30 kPa 44 in -Hg 149 kPa 33 in -Hg 111 kPa 21 in -Hg 71 kPa 329 deg F 165 deg C 283 deg F 139 deg C 227 deg F 108 deg C 443 ft3/min 209 L/s 353 ft3/min 167 L/s 264 ft3/min 125 L/s 947 ft3imin 447 L/s 762 ft3/min 360 L/s 582 ft3/min 275 Lis 1,359 deg F 737 deg C 1,331 deg F 722 deg C 1,302 deg F 706 deg C 4,700 BTU/min 83 kW 4,104 BTU/min 72 kW 3,641 BTU/min 64 kW 1,346 BTU/min 24 kW 864 BTU/min 15 kW 439 BTU/min 8 kW 2,359 BTU/min 41 kW 2,002 BTU/min 35 kW 1,612 BTU/min 28 kW 8,118 BTU/min 143 kW 6,436 BTU/min 113 kW 4,811 BTU/min 85 kW 8,150 BTU/hp-hr 12 MJ/kW-hr 8,600 BTU/hp-hr 12 MJ/kW-hr 9,198 BTU/hp-hr 13 MJ/kW-hr 24.2 vol/vol 24.3 vol/vol 24.2 vol/vol 22 deg 22 deg 22 deg 22 deg 22 deg 22 deg 2.51 g/hp-hr 2.92 g/hp-hr 3.59 g/hp-hr 1 g/hp-hr 1 g/hp-hr 1 g/hp-hr 2 g/hp-hr 2.68 g/kW-hr 2 g/hp-hr 2.68 g/kW-hr 2 g/hp-hr 2.68 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 4 g/hp-hr 5.36 g/kW-hr 491 g/hp-hr 658 g/kW-hr 515 g/hp-hr 691 g/kW-hr 509 g/hp-hr 683 g/kW-hr 7.6 % 7.8 % 7.9 % Cummins Confidential 1 1 1 1 1 FR92280 (Continued) Page: 3 Cranking System (Cold Starting Capability) Unaided Cold Start: Minimum cranking speed Bare Engine cranking torque at minimum unaided cold start temperature: Cold starting aids available Maximum parasitic load at 10 deg F @ Noise Emissions Top Right Side Left Side Front Exhaust noise emissions Estimated Free Field Sound Pressure Level at 3.28ft (1m) and Full -Load Governed Speed (Excludes Noise from Intake, Exhaust. Cooling System and Driven Components) Altitude ft (m) Aftercooler 120 (49) 110 (43) 250 RPM 480 lb -ft Block Heater 93.1 dBa 93.8 dBa 92 dBa 92.8 dBa 100.1 dBa Heat Rejection - Heat Load on Aftercooler BTU/min (kW) Ambient Temp deg F (deg C) 100 (38) 90 (32) 80 (27) 651 N -m 70 (21) 0 (0) 1000 (305) 2000 (610) 3000 (914) 4000 (1219) 5000 (1524) 6000 (1829) 7000 (2134) 8000 (2438) 9000 (2743) 10000 (3048) 950 (16.7) 1,051 (18.5) 1,153 (20.3) 1,254 (22.1) 1,355 (23.8) 1,466 (25.8) 1,466 (25.8) 1,466 (25.8) 1,466 (25.8) 1,466 (25.8) 1,466 (25.8) 880 (15.5) 971 (17.1) 1,072 (18.9) 1,173 (20.6) 1,274 (22.4) 1,385 (24.4) 1,385 (24.4) 1,385 (24.4) 1,385 (24.4) 1,385 (24.4) 1,385 (24.4) 799 (14.0) 900 (15.8) 991 (17.4) 1,092 (19.2) 1,183 (20.8) 1,294 (22.8) 1,294 (22.8) 1,294 (22.8) 1,294 (22.8) 1,294 (22.8) 1,294 (22.8) End of Report Cummins Confidential 728 (12.8) 819 (14.4) 910 (16.0) 1,011 (17.8) 1,102 (19.4) 1,213 (21.3) 1,213 (21.3) 1,213 (21.3) 1,213 (21.3) 1,213 (21.3) 1,213 (21.3) 647 (11.4) 738 (13.0) 829 (14.6) 930 (16.4) 1,021 (18.0) 1,122 (19.7) 1,122 (19.7) 1,122 (19.7) 1,122 (19.7) 1,122 (19.7) 1,122 (19.7) 566 (10.0) 657 (11.6) 748 (13.2) 849 (14.9) 940 (16.5) 1,041 (18.3) 1,041 (18.3) 1,041 (18.3) 1,041 (18.3) 1,041 (18.3) 1,041 (18.3) 411 12 7 5 ENGINEERING page Home Up Back NOISE ATTENUATION BY DISTANCE (Point Source) PROJECT DATA (Optional) Project MOC Water Pipelines Pumps Remarks 2 Natural Gas Driven Pumps Your ref EG07149 Client Identification Clients ref CALCULATION INPUT Source Noise Levels Sound Pressure Level (SPL, Lp) at 1 m from source 103.1 dB(A) Transmission path spherical Immission Point (listener) Distance from Source 950 ft CALCULATION RESULTS Sound levels Source Sound Power Level (PWL) 114.1 dB(A) Attenuation Attenuation by distance of 289.56 m 60.2 Immission (listener's) point Sound Pressure Level (SPL, Lp) 53.9 dB(A) Home www.engineeringpage.com ...b. , ., Horne Up Back NOISE ATTENUATION BY DISTANCE (Point Source) PROJECT DATA (Optional) Project MOC Water Pipelines Pumps Remarks 2 Natural Gas Driven Pumps Your ref EG07149 Client Identification Client's ref CALCULATION INPUT Source Noise Levels Sound Pressure Level (SPL, Lp) at 1 m from source 103.1 dB(A) Transmission path spherical Immission Point (listener) Distance from Source 350 ft CALCULATION RESULTS Sound levels Source Sound Power Level (PWL) 114.1 dB(A) Attenuation Attenuation by distance of 106.68 m 51.6 Immission (listener's) point Sound Pressure Level (SPL, Lp) 62.5 dB(A) Horne www.engineeringpage.com WILDLIFE IMPACT AND SENSITIVE AREAS REPORT MARATHON WATERLINE GARFIELD COUNTY, COLORADO Prepared for: Marathon Oil Company 743 Horizon Dr., #220 Grand Junction, Colorado Prepared by: WestWater Engineering 2516 Foresight Circle #1 Grand Junction, CO 81505 In Cooperation with: Cordilleran Compliance Services 826-211/Z Road Grand Junction, CO 81505 September 2008 1.0 INTRODUCTION 1.1 Project Description Cordilleran Compliance Services has requested WestWater Engineering (WWE) to complete a "Wildlife Impact and Sensitive Areas Report" for a proposed "pipeline development plan permit" in Garfield County, Colorado. Marathon Oil Company is seeking the pipeline development plan permit to install a waterline which begins approximately 9.6 miles northwest of Parachute, Colorado. The waterline begins in the SW 1/4 Section 28, Township 6 South, Range 97 West and runs north for approximately 13.7 miles before terminating in the NE 1/4, Section 19, Township 6 South, Range 97 West. The proposed waterline will be constructed entirely on private lands and will lie within an existing gas line corridor for 76 % of its proposed alignment. The remaining 24 % will traverse previously undisturbed habitat. Access to the project site is currently available via the Garden Gulch access road and various upgraded gravel roads that have recently been constructed in the project area for natural gas exploration and extraction. The primary use of the site and surrounding area is rangeland, wildlife habitat, and recent natural gas extraction/development. The project area is currently undergoing rapid natural gas development including drilling of wells, construction of gas pipelines, compressors and access roads. 1.2 General Survey Information In preparation for developing the following report, WWE biologists performed field surveys and assessments of wildlife, wildlife habitats, and habitats for sensitive plant species in the proposed project area. WWE conducted the survey during late May through June and August 25-28, 2008. The purpose of the surveys were to determine the wildlife and sensitive plant species that occupy the project area at varying periods during the year and that would potentially be impacted as a result of waterline construction and operational activities. Factors considered include: 1) soil type and texture; 2) existing land management; 3) absence or presence of wildlife and plant species including raptors, sage -grouse and other sensitive birds species; 4) special designations by Federal and State wildlife agencies; 5) the existing natural vegetation community and 6) wetlands/regulated waterways potentially within the jurisdiction of the Army Corps of Engineers (ACOE). This report provides written documentation that describes survey findings as well as recommended mitigation measures to help offset potential impacts to wildlife and sensitive plants that occupy the project site and adjacent area. This assessment and mitigation plan is intended to meet the sensitive areas report requirements of Garfield County Regulation 9.07.04 (10) (Board of County Commissioners 2006). 2.0 LANDSCAPE SETTING 2.1 Vegetation Vegetation at the higher elevations is diverse, but dominated by a mixture of mountain sagebrush, Gambel oak, serviceberry, antelope bitterbrush, snowberry, aspen and Douglas -fir WestWater Engineering Page 1 of 23 September 2008 forests. Groves of aspen and Douglas -fir prefer northern exposures where soil moisture and temperatures are suitable for these species. A variety of grasses and forbs are distributed throughout the understory in the lease area. A few common species include various wheatgrass species, brome grasses, Indian rice grass, western yarrow, dandelion, lupine, salsify and vetches. Riparian vegetation occurs along all the perennial streams; species include aspen, mountain willow, chokecherry, serviceberry, sedges and rushes. The climate for the Piceance Basin is considered semiarid with a wide range of temperatures and precipitation. The closest weather station is at the Altenbern Ranch on Roan Creek, which has provided reliable records to the National Oceanic and Atmospheric Administration (NOAA) since 1948. The average annual precipitation at the ranch is 16.41 inches, with a record low temperature of minus 38 degrees Fahrenheit and a record high temperature of 104 degrees Fahrenheit (NOAA website: www.noaa.gov). The average annual precipitation at the upper elevations of the Marathon lease should equal, and likely exceed, that observed along Roan Creek. 2.2 Soils Soil types include loams and sandy loams that overlay broken shale derived from the Green River Formation. This formation is visible in the sheer canyons of Roan and Parachute Creek and the Roan Cliffs overlooking the towns of Rifle, Parachute and DeBeque, Colorado. In many areas, soils profiles are not extensive and often only 12-24 inches of soil overlays deep, broken shale deposits. Soil types and the vegetation supported vary with elevation and slope aspect. Mapped soil types, as published by the Natural Resources Conservation Service (NRCS), U.S. Department of Agriculture (USDA), were reviewed to determine the soil types and vegetation characteristics of the project site and surrounding property (NRCS 2008). Seven soil types are found in the project area and include the following: 1. Northwater-Adel complex, 5 to 50 percent slopes and vegetation is predominantly mature aspen groves with an understory of deciduous mountain shrubs, grasses and forbs. This soil types supports the large aspen complexes on the Roan Plateau. 2. Parachute-Irigul complex, 5 to 30 percent slopes and vegetation is dominated by sagebrush shrublands. 3. Parachute-lrigul-Rhone association, 25 to 50 percent slopes. Vegetation includes a mix of aspen and deciduous mountain shrubs including serviceberry with an understory of sagebrush. 4. Parachute -Rhone loams, 50 to 30 percent slopes and vegetation include serviceberry, sagebrush and bitterbrush. 5. Silas loam, 1 to 12 percent slopes. Soils typically occur along drainage bottoms and supports aspen and riparian vegetation along perennial drainages. 6. Torriorthents, cool -Rock outcrop complex, 35 to 90 percent slopes. Slopes are often composed of bare shale soils with scattered sagebrush, grasses and forbs. This soil type is suitable habitat for sensitive plant species such as Piceance bladderpod. WestWater Engineering Page 2 of 23 September 2008 7. Happle-Rock Outcrop association, 25-65 percent slopes. Vegetation includes Indian ricegrass, shadscale saltbush, bottlebrush squirreltail, western wheatgrass, Wyoming big sagebrush and other perennial grasses and forbs. 2.3 Terrain Generally, the proposed waterline alignment is located on a major north -south ridgeline of the Roan Plateau that separates Roan Creek on the west and Parachute Creek on the east. All the drainages are tributary to the Colorado River system, located to the south. The topography is typical of the Piceance Basin, which is comprised of steep slopes rising to rolling ridge tops. A series of smaller ridges and drainages bisect the high mesa area, creating a broken landscape supporting rolling sagebrush steppe shrublands that are interspersed with deciduous mountain shrubs, aspen groves and Douglas -fir forests. Deep, white shale canyons are common throughout the main drainages (Parachute and Roan Creeks) with canyon walls dropping over 2,000 feet in horizontal distances of less than one-half mile in many areas. Major canyons located east of the waterline alignment include Garden Gulch, Red Gulch and Light Gulch. There are numerous perennial streams and springs in the project area that flow into the Parachute Creek and Roan Creek drainage. Elevations in the project area vary from 7,930 to 8,450 ft. 3.0 WILDLIFE AND PLANT SURVEYS 3.1 Background Information Descriptions of critical habitats for federally -listed threatened, endangered and candidate fish and wildlife species were reviewed in the Federal Register, U.S. Department of the Interior, U.S. Fish and Wildlife Service (USFWS). Wildlife habitat (activities) maps, provided via the internet web by the Colorado Division of Wildlife's (CDOW) "Natural Diversity Information Source" (NDIS), were reviewed and incorporated into this report in reference to mule deer, elk and state - listed threatened, endangered and species of "special concern"(CDOW 2008a). A list of Birds of Conservation Concern (BOCC) and their habitats for the Southern Rocky Mountain Region and the Colorado Plateau was reviewed. This list is published by the USFWS through a Memorandum of Understanding with the BLM and the U.S. Forest Service (USFS), which places high conservation priorities for BOCC species (USFWS 2002). Not all of these BOCC species occur regularly in Colorado, some are present only as seasonal migrants. Of those known to breed in Colorado, only a portion are known or suspected to breed within the vicinity of the proposed compressor pad site and waterline. Avian literature sources such as the "Birds of Western Colorado Plateau and Mesa Country" (Righter et al. 2004) and the "Colorado Breeding Bird Atlas" (Kingery 1998) were reviewed to determine the likelihood for species occurrence within the project area. Bird identification and taxonomic nomenclature are in accordance with that applied by the Colorado Breeding Bird Atlas Project (Kingery 1998). The determination of the presence/absence of suitable habitat for Threatened, Endangered and "Sensitive Species" (TESS) plants was based on previous WWE observations of typical habitat occupied by BLM or USFS sensitive plants, the Colorado Natural Heritage Program (CNHP) Rare Plant Field Guide (Spackman et al. 1997), and locations of species documented in the CNHP statewide database. WestWater Engineering Page 3 of 23 September 2008 1 3.2 Survey Methods 1 1 1 1 1 1 1 1 1 1 1 1 1 1 A preliminary review of the project area, using aerial photography maps, was conducted to familiarize personnel with vegetation types and terrain and as an aid to help determine the likelihood of the presence of threatened, endangered or sensitive wildlife and plant species. Field data including general project location, boundaries and reported features were verified and/or recorded with the aid of a handheld global positioning system instrument (GPS) utilizing NAD83/WGS84 map datum, with all coordinate locations based on the Universal Transverse Mercator (UTM) coordinate system within Zone 12S. WWE biologists physically surveyed the area to identify and locate wildlife species, wildlife sign (tracks, fecal droppings, and vegetation disturbance), vegetation communities and wildlife habitats. Vegetation types were determined through field identification of plants, aerial photography, and on -the -ground assessments of plant abundance. Identification of plant species was aided by using pertinent published field guides (Whitson et al. 2004, CWMA 2007, Kershaw et al. 1998). Visual searches for raptor and other bird species nests were focused on shale cliffs and aspen groves within a 0.25 mile distance from the proposed waterline's centerline. Nest searches and bird identification were aided with the use of binoculars and song recognition, where needed. In addition to these visual and audio searching techniques, biologists used the recorded call play -back methodology described by P. Kennedy (Kennedy and Stahlecker 1993; the "Kennedy-Stahlecker-Rinker" method) as modified by R. Reynolds and others (1992) for the southwestern United States. WWE biologists used "Predation MP3 Game Caller" units and played the call of a Great Horned Owl or a Cooper's Hawk alarm call in an attempt to locate raptors who often respond to the presence and calls of other raptors. Photographs were taken of the general project location, surrounding vegetation and terrain (Appendix A; Photos 1 and 2). 4.0 RESULTS OF SURVEY 4.1 TESS Plant Species Special status species of plants that may be present in the project area, and their habitats, are listed in Tables 1 and 2 in two categories: 1) Federal Candidate Species (1 species), and 2) BLM Sensitive Species (3 species). Nomenclature and habitat descriptions are based on the CHNP literature (Spackman et al. 1997). Table 1. Potential Federally -listed Threatened, Endangered and Candidate plant species Scientific Name Common Name Status* Habitat Preference Penslemon debilis Parachute penstemon C Endemic to Garfield County with only five known occurrences; sparsely vegetated, south facing, steep, white shale talus in the Mahogany Zone of the Parachute Creek Member of the Green River Formation. Elevation: 7,800-9,000 ft E= Federal Endangered, T= Federal Threatened, C= Federal Candidate WestWater Engineering Page 4 of 23 September 2008 Table 2. Potential sensitive plant species Scientific Name Common Name Habitat Preference Thalictrum heliophilum Sun -loving meadowrue Steep eroding talus slopes of shale, Green River formation. Elevation: 5,800-9,000 ft Lesquerella parviflora Piceance bladderpod Decomposed Green River formation shale slopes, generally bare ground on slopes from 50-70 percent. Elevations: 7,000-8,500 ft. Menzelia rhizomata Roan Cliffs blazingstar Steep eroding talus slopes of shale, Green River formation. Elevation: 5,800-9,000 ft. Results: Piceance bladderpod was observed along one low ridgeline north of Bear Run Creek. The site is not intercepted by the proposed waterline alignment. The bladderpod is located along a side hill of a small ridge line west of the waterline alignment (Figure 1). None of the other potential TESS plant species were observed during the biological survey. The terrain and soils do not appear suitable for sun -loving meadowrue and Roan Cliffs blazingstar. 4.2 Federal Listed Threatened, Endangered, Candidate Wildlife Species No federal listed threatened, endangered or candidate wildlife species are known to occupy the site of the proposed waterline alignment and, thus, none of these species will be affected as a result of the proposed project. All perennial and ephemeral washes potentially affected by construction (silt loading) drain into Parachute Creek and Roan Creek and from there into the section of the Colorado River that is designated critical habitat for the federally -endangered Colorado pikeminnow and razorback sucker (Maddux et al. 1993). 4.3 State Listed Threatened, Endangered Special Concern Wildlife Species WWE biologists determined that three state listed threatened, endangered or special concern species may occur within the project area and are listed in Table 3 (CDOW 2008b). Table 3. Potential State -listed Threatened, Endangered and Special Concern wildlife species Scientific Name Common Name State Status Habitat Preference Centrocercus urophasianus Greater Sage- Grouse SC Sagebrush dominated mountain steppe shrublands with rolling terrain. Falco peregrinus anatum American Peregrine falcon SC High, sheer cliffs, typically overlooking open habitats including canyons and the Colorado River Valley. Elevation: 5,000 to 6,500 ft. Oncorhynchus clarki pleuriticus Colorado River cutthroat trout SC Perennial mountain streams on the Roan Plateau in drainages of Parachute and Roan Creeks. * E= State Endangered T= State Threatened, SC = Species of Concern During the survey, Greater Sage -Grouse occurrence in suitable habitat was detected by observation of sign including fecal droppings, tracks and feathers. The CDOW has mapped WestWater Engineering Page 5 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 overall range for this species on the Roan Plateau and the entire waterline project falls within this 1 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 range. 4.4 Birds of Conservation Concern (BOCC) - Raptors 4.4.1 Raptors: Several raptor (birds of prey) species nest, reside, forage or pass through the general area of the waterline project. Raptor species that are common to the area include Golden Eagle, Red-tailed Hawk, American Kestrel, Cooper's Hawk, Sharp -shinned Hawk, Northern Goshawk, Northern Harrier, Peregrine Falcon, Northern Saw -whet Owl, Flammulated Owl, Long-eared Owl and Great Horned Owl. The aspen groves and shale cliffs existing in the project area are of sufficient height and density for tree and cliff nesting raptors. Raptor species that are listed as BOCC in the Southern Rockies and the Colorado Plateau, and which may occur in the project area, are listed in Table 4. In addition to the BOCC list, eight other species of raptors that could potentially be found nesting in the waterline project area are also listed in Table 4. Table 4. Raptor species that may be present in the project area Common Name Scientific Name BOCC Habitat & Breeding Records Cooper's Hawk Accipiter cooperii N • Cottonwood riparian to spruce/fir forests, including pinon/juniper woodlands. Nests most frequently in pines and aspen. Sharp shinned Hawk Accipiter striates N • High density young, or even -aged, stands of coniferous forest and deciduous forests of aspen or oak brush with small stands of conifers. Red-tailed Hawk Buteo jamaicensis N • Diverse habitats including grasslands, pinon juniper woodlands and deciduous, coniferous and riparian forests. Nests in mature trees (especially cottonwood, aspen, and pines) and on cliffs and utility poles. Northern Harrier Circus cyaneus Y • Grassland, shrubland, agricultural areas, and marshes. Nests in areas with abundant cover (e.g., tall reeds, cattails, grasses) in grasslands and marshes. Also known to nest in high -elevation sagebrush. Northern Goshawk Accipter gentiles N • Typically in high elevation coniferous or aspen forest. Can occur in pinon juniper habitat. Peregrine Falcon Falco peregrines Y • Pinon juniper woodlands and coniferous and riparian forest near cliffs. Nests on ledges of high cliffs away from human disturbance. Golden Eagle Aquila• chrvsaetos Y Grasslands, shrublands, agricultural areas, pifion-juniper woodlands, and ponderosa forests. Prefers nest sites on cliffs and sometimes in trees in rugged areas. American Kestrel Falco sparverius p N • Coniferous and deciduous forests and open terrain with suitable perches. Nests in cavities in trees, cliffs and buildings. Great Horned Owl Bubo vilginianus N • Occupies diverse habitats including riparian, deciduous and coniferous forests with adjacent open terrain for hunting. WestWater Engineering Page 6 of 23 September 2008 Table 4. Raptor species that may be present in the project area Common Name Scientific Name BOCC Habitat & Breeding Records Flammulated Owl Otus flammeolus y • Found commonly on the Roan Plateau, nests in aspen groves above 7,000 ft. Northern Saw whet Owl Aegolius acadicus N • Mountain and foothills forest and canyon country. Significant use of pinon juniper woodland and Douglas - fir. Long-eared Owl Asio otos N • Occupies mixed shrublands. Nests and roost in sites in dense cottonwoods, willows, scrub oak, junipers, tamarisk and dense forest of mixed conifers and aspens. A total of eleven nests were observed during the survey; seven Red-tailed Hawk nests and four unidentified hawk nests. Of the seven Red-tailed Hawk nests observed, three were active (Appendix A, Photo3). None of the unidentified hawk nests were active (Table 5 and Figure 1). In this portion of Colorado, the raptor nesting season is generally considered to occur between mid-February and mid-August. Typically, owls and eagles are the first raptors to begin the annual nesting cycle followed by members of the Genus Accipiter, Buteo, Circus and Falco. Usually, by mid-August all young birds have fledged and left the nest. Location information regarding the raptor nests observed during this survey is found in Table 5 and Figure 1 Table 5. Location of raptor nests in project area Number Zone Easting Northing Status RTHA-1 12S 740111 4387436 Inactive RTHA-2 12S 739991 4386417 Active RTHA-3 12S 743108 4381446 Active RTHA-4 12S 742817 4379493 Inactive RTHA-5 12S 743173 4378613 Active RTHA-6 12S 743027 4378471 Inactive RTHA-7 12S 741755 4376985 Inactive UNHA-1 12S 740388 4385982 Inactive UNHA-2 12S 742871 4381353 Inactive UNHA-3 12S 740198 4376766 Inactive UNHA-4 12S 741015 4386313 Inactive WestWater Engineering Page 7 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Figure 1 Cordilleron Marathon Waterline Wildlife Impact and Sensitive Areas Raptors - September 2008 k YWestWater Engineering Environmental Consulting Services Miles 0 0.5 1 2 Legend Raptor Nests * Active Inactive Piceance bladderpod Proposed Waterline - Garden Gulch Road Raptor Nest Buffer (1/3 mile) BLM ap ourse or eron o r�aennes aro ens•rea 'ara onr'aerine'apors .mx. pe. 4.4.2 Birds of Conservation Concern (BOCC) other than raptors In addition to raptors discussed above, WWE biologists surveyed the proposed waterline route for the presence of sensitive or migratory BOCC that could potentially occur in the project area. BOCC habitat and nesting records, as described in the Colorado Breeding Bird Atlas (Kingery 1998), Colorado Birds (Andrews and Righter 1992) and Birds of Western Colorado Plateau and Mesa Country (Righter et al. 2004) in the vicinity of the proposed waterline are summarized in Table 6. Table 6. BLM sensitive & migratory bird species that may be present in the project area Common Name Scientific Name Habitat & Breeding Records Virginia's Warbler Vermivora virginiae • Dense shrublands and scrub forests of Gambel oak, pifion- juniper, mountain mahogany or ponderosa pine. Nests on the ground among dead leaves or on rock or log overhangs. • Nesting has been confirmed in Garfield County, including the Roan Plateau. Likely nester in the project area. Williamson's Sapsucker Sphyrapicus thyroideus • Occupies conifer forest, often mixed with aspen from 7,000 to 10,700 ft. Mainly nests in aspen groves. Greater Sage- Grouse Centrocercus urophasianus • Large continuous areas of sagebrush on flat or gently rolling terrain with open areas in vicinity for leks. Nests in herbaceous areas within sagebrush. • Confirmed breeder in Rio Blanco and Garfield Counties. Migratory songbirds typically begin to arrive in Colorado in late April with the majority arriving and initiating breeding activity during the month of May and June. The migratory species most likely to nest in this project area include Virginia's Warbler and Williamson's Sucker. Virginia's Warblers have been confirmed nesting in a variety of shrublands in semi -arid environments including oakbrush, pifion-juniper and aspen. It nests primarily in the understory of these plant communities, all of which occur in this project area. Williamson's sapsucker is a cavity nester, nesting primarily in mature aspen groves above 7000 feet in elevation. 4.4.3 Greater Sage -Grouse The Greater Sage -Grouse occurs in suitable habitat along the waterline alignment and is recognized by the BLM and CDOW as a species of special concern. Greater Sage -Grouse (GrSG) occupy the higher elevations in the Greasewood Gulch area north of Piceance Creek and on the divides between the Parachute Creek, Piceance Creek and Roan Creek drainages. They require large, continuous areas of sagebrush habitat on flat on gently rolling terrain, with vegetation dominated by sagebrush (Artemesia tridentata spp.) and generally lacking an overstory of mountain shrub or woodland species. Their breeding occurs in the spring on leks or strutting grounds, where dominant males display to attract females to mate. Once bred, the females disperse to build a nest and lay eggs. Recent research by the CDOW reveals that approximately 80% of the females nest within a 4 -mile radius of the lek on which they were bred (CDOW 2005, Tony Apa, personal communication). WestWater Engineering Page 9 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Residual grass cover mixed with a quality herbaceous component in the sagebrush understory results in increased survival of the nests and chicks through their early weeks after hatching. Self-sustaining sage -grouse populations require extensive patches of sagebrush dominated habitat for long-term viability. The patch size of sagebrush habitat necessary to support sage - grouse is not well known on the Roan Plateau. It is known that sage -grouse on the Roan Plateau prefer ridge tops and are thought to spend little time on steep hillsides and in the bottom of gulches and draws. Biologists walked the proposed waterline route following transect routes through suitable habitat looking for grouse as well as grouse sign (droppings, feathers, tracks). All locations of grouse sign were recorded using handheld GPS units and locations are reported as UTM coordinates (Datum: NAD83, Zone: 12S). Special attention was focused on potential sage -grouse habitat on ridge -tops and other suspected habitat within the waterline project area. Results: Grouse sign was observed throughout the waterline project area with the highest density of sign found in the north half of the project (Figure 2). An active lek, Bear Run, is situated near the waterline right-of-way (ROW) in a previously disturbed ROW in Section 33. Greater Sage - Grouse sign was observed in vegetative communities dominated by sagebrush, forbs and grasses, with slopes typically less than 20% (Appendix A, Photo 4). 4.5 Terrestrial Species 4.5.1 American Elk and Mule Deer The proposed waterline alignment lies within CDOW, Game Management Unit (GMU) 31 and 32. The proposed waterline project area is situated within mule deer and American elk overall range and a short segment of the southern most alignment lies adjacent to mule deer and elk winter range. It is also included in mule deer and elk summer range and in a portion of two Roan Plateau elk production areas (Figures 3 and 4). No mule deer production areas are mapped by NDIS, but the entire area is within mule deer fawning habitat. Several fawns were observed during the June survey period (Appendix A, Photo 5). During the survey, mule deer and elk droppings and fresh tracks were observed frequently in the project area. Elk and mule deer utilize the summer range extensively on the Roan Plateau, following the snow line to higher elevations in the spring. Mule deer rely on the existing sagebrush and shrubs for their primary food source, while elk rely primarily on available grasses for food. Adjacent areas of aspen, douglas-fir and scattered oakbrush/serviceberry copses provide necessary forage and production areas as well as escape, thermal, and loafing cover for deer and elk, particularly during the summer period. 4.5.2 Black Bear and Mountain Lion CDOW "NDIS" mapping shows the proposed waterline to be within overall range for black bear and mountain lion. Black bears are omnivorous and the diet depends largely on what kinds of food are seasonally available, although their mainstay is vegetation. In spring, emerging grasses and succulent forbs are favored. In summer and early fall, bears take advantage of a variety of berries and other fruits. In late fall, preferences are for berries and mast (acorns), where available. When the opportunity is present, black bears eat a diversity of insects, including beetle WestWater Engineering Page 10 of 23 September 2008 Figure 2 Cordilleron Marathon Waterline Wildlife Impact and Sensitive Areas Sage Grouse - September 2008 WestWater Engineering Environmental Consulting Services Wer Pa racliutLekeutoffiu-l�-'t1'Lek + ''+,,. • Pt"t1.OldlandrCow Camp #2 Lek ....... h E North Parachute Ran '�lll 1 E ` ti. d .. }i. mairto • Zd-11/4,4* 1st „ • • Legend Sage Grouse Sign • Active Leks . Inactive Leks Lek Buffer (0 6 mi) Q Nesting Habitat -Active Lek (4 mi) ONesting Habitat - Inactive Lek (4 mi) GrSG Habitat (BLM/CDOW 2007) Proposed Waterline - Garden Gulch Road n BLM k i J If -i M 1`al • rviap sourse: c+coraineron compliance servrcewaratnomvvarenrnesuarosensereavaaramomnraternnesagec,rouse.mxa spec tz tour Figure 3 Cordilleron Marathon Waterline Wildlife Impact and Sensitive Areas Deer Activity - September 2008 WestWater Engineering soZir Environmental Consulting Services Miles 0 0.5 1 2 Legend Proposed Waterline Garden Gulch Road _ Summer Range MIWinter Concentration as Winter Range J BLM P<:al .sur :. .c•rlir ,zo, Lorro:.mncc! aredineaGaroSens'n'JVm- it .;l -:":r Figure 4 Cordilleron Marathon Waterline Wildlife Impact and Sensitive Areas Elk Activity - September 2008 nWestWater Engineering Environmental Consulting Services Miles 0 0.5 1 1 2 Legend . Proposed Waterline Garden Gulch Road QProduction Area - Summer Range ® Winter Concentration - Winter Range F-1 BLtv1 fit } so --- I " Map Sours.,..- Z'1Cordillernn Cornp'iance .S tviceltilarathnnlWaterlinesGaraSensWreaNarathon 'aterhneEilk.n: cl Spet 12, 2008 larvae and social insects (ants, wasps, bees, termites, etc.), and they kill a variety of mammals, including rodents, rabbits, and young or unwary ungulates. The Roan Plateau provides important habitat to black bear during the late spring, summer and fall months with it's abundance of berry and mast producing plants including serviceberry, chokecherry and Gambel oak. Mountain lion typically follow migrating deer herds in search of deer as the primary food source. Mountain lion have large territories and are highly mobile as they search for food or new territories. Mountain lion prefer to hunt in rocky terrain near woodland habitats. These habitat conditions occur within the project area. Mountain lion could travel through and hunt in the project area during the summer months. The project area is not mapped by CDOW as a potential mountain lion conflict area. 4.5.3 Small Mammals Common small mammal species (small game, furbearers, non -game) for the project area include coyote (Canis latrans), golden -mantled ground squirrel (Spermophilus lateralis), northern pocket gopher (Thomomys talpoides), white-tailed jackrabbit (Lepus townsendii), least chipmunk (Tamias minimus) (Reid 2006). 4.5.4 Other Bird Species The project areas' shrublands, aspen groves, understory grasses and Douglas -fir stands provide nesting and foraging habitats for various other migratory and non -migratory bird species, depending on the season of the year. Bird species observed during the survey included Bewick's Wren (Thryomanes bewickii), Black -billed Magpie (Pica pica), Common Raven (Corvus corax), Mountain Bluebird (Sialia currucoides), Brewer's Sparrow (Spizella breweri), Vesper Sparrow (Pooecetes gramineus), Tree Swallows (Tachycineta thalassina), Cliff Swallows (Petrochelidon pyrrhonota), Turkey Vulture (Cathartes aura) and Green -tailed Towhee (Pipilo chlorurus). 4.5.5 Reptiles Western terrestrial garter snakes (Thamnophis elegans) were observed in the vicinity of Bear Run Creek on the north end of the pipeline ROW. This species is common on the Roan Plateau and is typically observed around perennial creeks and ponds. Smooth green snake (Liochlorophis vernalis) were not observed during surveys but are known to occur on the Roan Plateau (Hammerson 1999). This species is not abundant across western Colorado; however, it is not listed as a sensitive species. Short -horned lizards (Phrynosoma hernandesi) were observed in the upland sagebrush habitats, particularly in the northern portion of the pipeline alignment (Appendix A; Photo 6). Both adults and young of the year were documented. From Garden Gulch north this species appears to be fairly abundant along ridgelines in sagebrush habitats. It is not listed by the CDOW as a sensitive species. 4.6 Aquatic Species 4.6.1 Amphibians One species of amphibian was observed in the general area of the alignment. Tiger salamanders (Ambystoma tigrinum) were observed in a livestock watering pond about 0.5 miles west of the pipeline ROW north of Bear Run Creek. This species likely occurs across the Roan Plateau in WestWater Engineering Page 14 of 23 September 2008 suitable ponds and in the perennial streams and wetlands. The species prefers to breed in permanent ponds and small reservoirs. 4.6.2 Fish The pipeline alignment crosses 5 other perennial steams between Bear Run Creek and Garden Gulch and one unnamed drainage west of Cascade creek. No fish populations are known to occur in these headwater drainages. All drainages affected by the pipeline flow into the Parachute Creek drainage and eventually the Colorado River. Parachute Creek supports a reproducing population of Colorado River Cutthroat trout below the West Fork falls. Other species in the main stem of Parachute Creek include rainbow trout, speckled dace, brook trout and white suckers. 4.7 Wetlands and Waterways Springs, seeps and wetlands are essential components of wildlife habitat. The proposed pipeline alignment crosses nine areas of potential ACOE jurisdiction (Table 7; Figure 5). Fringe wetland vegetation borders the perennial streams. Table 7. Perennial stream crossings for the Marathon Trunk pipeline, 2008 Stream name Zone Easting Northing Width (in.) Depth (in.) Willow Creek 12S 740526 4386145 40 12 N. Fork Little Creek 12S 741505 4385015 46 9 Little Creek 12S 742198 4383663 36 6 House Log Gulch 12S 743093 4382932 48 6 Circle Creek 12S 742762 4379419 40 10 Unnamed tributary to Garden Gulch 12S 741482 4385051 18 4 Corral Gulch (Garden Gulch above falls) 12S 742685 4380265 36 8 Unnamed tributary to Garden Gulch south of McKay Gulch, Sec 13, T6S, R97W (Intermittent) 12S 743317 4378718 24 4 Unnamed tributary in Sec. 23, T5S, 97W 12S 742196 4376975 36 12 Unnamed tributary E. Fk. Conn Creek, Sec. 22, T5S, R97W 12S 739853 4377059 30 4 5.0 AFFECTS TO WILDLIFE Construction of the waterline will likely affect site-specific native vegetation and the suitability of wildlife habitat adjacent to the project site. Affects will be minimized by locating the waterline within the currently disturbed ROWs. Ongoing gas development activities on the Roan Plateau contribute to the overall cumulative impacts to wildlife populations of the area through gradual habitat loss, habitat fragmentation, habitat alteration and displacement from previously occupied habitats. WestWater Engineering Page 15 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Figure 5 Cordilleron Marathon Waterline Wildlife Impact and Sensitive Areas Stream Crossings - September 2008 �WestWater Engineering r Environmental Consulting Services Miles 0 0.5 1 2 Legend • Stream Crossings -L7 Proposed Waterline - Garden Gulch Road B!_M 014 0: 1,,-r,1 p .urse or•r eron omp nn4r/a er Inas aro, ens' rea are ion :a er ine-ap ors.mx .e . 5.1 BOCC 5.1.1 Raptors The potential exists for disturbance to raptor nesting along the waterline alignment in the vicinity of the known nest sites. The affects to raptor nesting habitat is expected to be minimal because the proposed waterline will be constructed in an existing ROW for approximately 76 percent of the total distance. No nest sites are located in sites where removal of the nest tree is a concern. Removal of potential nest trees will be limited to a small segment (24 percent) of previously undisturbed habitat at the southern portion of the waterline. Raptor nesting within 0.25 miles of the pipeline alignment could potentially be indirectly affected by disturbance associated with pipeline construction including equipment and human presence. Nest sites that are in direct line of site of construction activities have the most potential for being adversely affected. If there is vegetation or terrain features that tend to protect the nest, effects of disturbance are often mitigated. However, 5 nest sites have been identified that are within 150 yards of the pipeline alignment. Two of these nests were active this year. One nest (RTHA-5) is 150 yards from the waterline centerline and the other nest (RTHA-2) is only 90 yards from the waterline centerline. These nests are the most vulnerable to potential negative effects caused by construction activities. 5.1.2 Passerine Species The affects to foraging and nesting habitat to a small number of bird species is expected to be minimal. The waterline alignment effects are expected to affect mainly shrubland plant habitat that may recover during reclamation. 5.1.3 Greater Sage -Grouse Sage -grouse are highly dependent on sagebrush dominated habitats. The quality and quantity of this habitat type dictates its suitability for sage -grouse. Construction of the proposed waterline in previously undisturbed sagebrush habitat will add to the cumulative loss of sagebrush habitat on the Roan Plateau. However, only a small portion (24 percent) of the pipeline is in undisturbed habitat minimizing the overall loss of sagebrush habitat. Sage -grouse would potentially be affected by pipeline construction due to effects on breeding, brood -rearing and winter habitats. Effects could be direct and indirect. Direct effects would be loss of habitat caused by new ground disturbance to sagebrush vegetation. Indirect effects would result from factors such as equipment noise and the presence of humans in suitable habitats. Since much of the waterline alignment is along an existing ROW corridor, the amount of new disturbance (direct effects) to sage -grouse habitat will be limited. Indirect effects due to waterline construction activity would occur primarily along ridgelines in the area north of Garden Gulch due to its proximity to known leks. There are only 2 known leks in or near the project area; loss of either site would potentially jeopardize the sustainability of the sage -grouse population that currently exists along the Parachute Creek -Roan Creek Divide. The highest risk of impacts would occur in the area around the Bear Run lek site from indirect impacts. The lek is located approximately 200 yards east of the waterline ROW. In this area, the construction of the main Garden Gulch all-weather access road has also added a disturbance factor to the area due to the increased vehicle traffic. The Bear WestWater Engineering Page 17 of 23 September 2008 Run lek is near enough to the planned development to be directly and indirectly affected by construction activities. Construction occurring during the critical breeding season from March 1 to May 31 could interfere with mating and reduce the nesting success of female sage -grouse. The worst case for sage -grouse would involve the abandonment of the lek by sage -grouse due to human disturbance. Additionally, since 80% of hens nest within 4 miles of the lek, disturbance to suitable nesting habitat between April 15 and July 15 could negatively affect annual chick production. 5.2 Terrestrial Species 5.2.1 Elk and Mule Deer Potential affects include the temporary loss of a small amount of summer range habitat along the waterline ROW in previously undisturbed areas. The waterline crosses a portion of two elk production areas but the alignment stays mostly on ridge tops and within an existing pipeline corridor and should not have an adverse affect on the production area. The southern portion of the waterline lies at the upper elevation of known mule deer and elk winter range. Winter range habitat will be temporarily impacted but no long term impacts to mule deer or elk should occur. 5.2.2 Black Bear and Mountain Lion Due to the large home range of both black bear and mountain and because of the extensive amount of available habitat for these species no adverse affect from this project for these species is expected. 5.2.3 Small Mammals The amount of available habitat for small mammals should not be affected significantly by the waterline project. Disturbance will occur primarily within an existing pipeline ROW with only a small amount of new disturbance in the southern portion of the waterline. This small amount of new disturbance is not expected to affect small mammal populations. 5.2.4 Reptiles The amount of available habitat for reptiles should not be affected significantly by the proposed waterline project. Disturbance will occur primarily within an existing pipeline corridor with only a small amount of disturbance in the southern portion of the waterline. This small amount of new disturbance is not expected to affect reptile populations. 5.3 Aquatic Species 5.3.1 Amphibians The amount of available habitat for amphibians should not be affected significantly by the proposed waterline project. Disturbance will occur primarily within an existing pipeline corridor with only a small amount of disturbance in the southern portion of the waterline. This small amount of new disturbance is not expected to affect amphibian populations. 5.3.2 Endangered Fish Colorado River cutthroat trout habitat exists in the West Fork of Parachute Creek west of the project area but will not be affected by this project. WestWater Engineering Page 18 of 23 September 2008 6.0 AFFECTS TO TESS PLANT SPECIES 6.1 TESS Plants The Piceance bladderpod population found during biological surveys is located about 0.4 -miles west of the waterline alignment. No effects are expected to the bladderpod population from this project. 7.0 AFFECTS TO WETLANDS Affects to perennial stream habitats and COE waters are likely to be minimal. No aquatic wildlife species should be affected in the vicinity of pipeline construction. Water quality may be temporarily affected due to increased sediment loads. 8.0 MITIGATION RECOMMENDATIONS The following recommendations for mitigation are presented for maintenance and improvement of wildlife habitat quality as well as for the prevention of human -caused wildlife affects. 8.1 Maintenance and Restoration of Habitat In the Rocky Mountain Region, sagebrush communities have declined over the years and continue to do so as a result of development and habitat conversion. In many areas, cheatgrass and other exotic grass invasion has limited the recovery of habitats by greatly reducing re- establishment of native species. The effects are realized through a competitive advantage that exotic plants have for water and nutrients. Sagebrush is a key habitat for Greater Sage -Grouse and provides nesting and foraging habitat for a variety of migratory birds and small mammals. The available residual grass understory of the current sagebrush, mountain shrublands vegetation and adjacent meadows provides valuable forage for summering deer and elk. Reclamation plans should include efforts to restore the sagebrush community. Reclamation recommendations include the following: 1. Native mountain sagebrush (Artemisia tridentata spp. vaseyana) should be considered and added to the re -vegetation plan of disturbed soils once grass/forb plantings have established themselves. Seed from the existing sagebrush vegetation should be used to create wildlife forage that has a mix of grasses, forbs and sagebrush. 2. Ongoing control of noxious and invasive weeds is recommended as an additional method to maintain native vegetation communities and favorable wildlife habitats. An "Integrated Vegetation and Weed Management Plan" for this project is being prepared by another contract and should be consulted for proper control methods. WestWater Engineering Page 19 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8.2 Planning for Sensitive Time Periods and Areas 8.2.1 Mule Deer and Elk The proposed waterline project area lies within summer range habitat for both deer and elk and in a only small portion of elk winter range, consequently causing negligible impact to them during the critical winter months. Activities due to waterline construction and habitat loss both direct and indirect should have minimal affect on summering deer and elk if disturbance is limited to the immediate waterline ROW. Construction should be completed as quickly as possible, especially during the month of June in the sections near the elk production areas (Figure 4). Confining activity to the immediate ROW and moving quickly through the areas near the elk production areas will minimize disturbance to elk. The critical time period for elk calving is shown in Table 8. Table 8. Seasonal critical periods for the Marathon waterline project Concern Period Elk calving period May 20 — June 30 Migratory bird primary nesting season May 15 — August 1 Raptor nesting season February 1 — August 15 8.2.2 Migratory Birds Vegetation clearing activities, in relation to construction and development projects, would have less impact to migratory birds if conducted outside the primary nesting season of May 15 to August 1 (Table 8). 8.2.3 Greater Sage -Grouse In order to reduce the likelihood that sage -grouse populations decline in the project area, effective natural gas pre -development planning and post -development practices offer the best prospect for mitigating adverse affects to sage -grouse populations. Planning development with projects engineered to avoid, minimize and mitigate affects of natural gas development are approaches that result in the most favorable mitigation outcomes. Sage -grouse are highly dependent on sagebrush dominated habitats. The quality and quantity of this habitat type dictates its suitability for sage -grouse. Previous studies throughout the west have provided wildlife managers with measurable vegetative parameters that can be used to evaluate the quality of sage -grouse habitat. Recommended guidelines for favorable sage -grouse habitat have been published by CDOW (CCP 2008). Wildlife managers have developed best management practices and guidelines, which can be used to help mitigate natural gas development impacts in these habitats. The opportunity exists to enhance the existing sage -grouse habitat in order to offset habitat losses attributable to natural gas development and should be implemented to protect and enhance leks, nesting habitat and essential winter habitat. As with all guidelines, adaptive approaches should be used and the best available science should be applied when implementing these guidelines. It is recommended that WestWater Engineering Page 20 of 23 September 2008 1 where there is Greater Sage -Grouse present, construction activities be done in such a way as to minimize disturbance to Greater Sage -Grouse habitat. Lek habitat and nesting/brooding rearing habitat are critical habitats that are linked biologically and cannot be separated easily for protective management practices. Lek sites need protection during the breeding season, and habitat protection and management year-round to secure their integrity. After breeding, female sage -grouse nest in close proximity to leks. Sage -grouse research shows that 52% of nest sites occur within 2.0 miles of the lek and approximately 80% of nesting occurs within 4 miles of lek sites (CCP 2008). Protection concerns are concentrated within a short radius of the lek during the breeding season and thereafter the radius of protection expands to include essential nesting/brood-rearing habitat. After the completion of the mating period (March 1 -May 31), including protection of lek habitat, protection transitions into a broader area that includes nesting/brood rearing habitat (April 15 -July 15), such that the two features cannot be separated. The Bear Run lek site is near enough to the planned waterline development to be directly impacted by construction activities. Construction activities should be avoided near the lek during the March 1 -May 31 mating period and minimized in the surrounding nesting/brood rearing habitat from April 15 -July 15. 8.2.4 Raptors Activities associated with the proposed project have the potential to impact raptor populations. In order to reduce the potential for affects to nesting raptors, it will be important that the project proponent schedule construction activities such that they do not interfere with breeding, nesting and brood rearing activities (Table 8). CDOW's (Craig 2002, CDOW 2008c) recommended raptor nest site avoidance standards for the species observed in this survey are summarized below (Table 9). If the project cannot be completed prior to, or after, the next nesting season, the known nest should be re -inventoried by qualified biologists. If any birds are found behaving in a manner consistent with nesting, every effort should be made to apply the timing limitation and buffer distance stipulations. Table 9. Timing Limitations and NSO Recommendations For Active Raptor Nests Species Buffer Zone - NSO Seasonal Restriction Red-tailed Hawk 0.33 mile 1 March - 15 July Swainson's Hawk 0.25 mile 1 April - 15 August Sharp -shinned Hawk 0.25 mile I April - 15 August Cooper's Hawk 0.25 mile 1 April - 15 August American Kestrel * * Peregrine Falcon 0.5 mile 15 March - 31 July Prairie Falcon 0.5 mile 15 March - 31 July Golden Eagle 0.25 mile + alt. nests 1 January - 15 July Bald Eagle 0.50 mile 15 December - 15 July Northern Harrier 0.25 mile 1 April - 15 August Long-eared Owl 0.25 mile 1 March - 15 July Flammulated Owl 0.25 mile 1 April — 1 August Northern Saw -whet Owl 0.25 mile I March — 15 July Great Horned Owl * * * Great Horned Owls and Kestrels are relatively tolerant of human activity. Keep activity to a minimum during breeding season. WestWater Engineering Page 21 of 23 September 2008 1 1 1 1 1 1 1 1 1 1 1 1 1 1 t 1 1 8.3 Other Mitigation Practices 8.3.1 Erosion Control, Soil Stability and Water Quality Efforts to control soil erosion within the project area should be implemented. Disturbed soils within the project area are susceptible to erosion and downstream water quality could be negatively affected by increased soil erosion. In addition to stormwater management around the project site, other current factors (noxious weeds, livestock grazing, other natural gas development) affecting soil erosion should be managed and remedial measures implemented. Prior to construction in the vicinity of potential ACOE jurisdictional areas, appropriate consultation with the ACOE is recommended. To protect the integrity of the perennial stream ecosystems and the associated riparian habitat within the project area, precautions should be taken when crossing or intersecting the drainages identified. Standard Best Management Practices (BMPs), including adequate barriers and filtration methods should be used to prevent and reduce soil from eroding into perennial streams and riparian areas. This may include the installation of check dams along small ephemeral drainages and vegetation restoration 9.0 REFERENCES Andrews, R., and R. Righter. 1992. Colorado Birds: A Reference to Their Distribution and Habitat. Denver Museum of Natural History, Colorado. Board of County Commissioners. 2006. Garfield County Zoning Resolution of 1978, amended October, 2006. Board of County Commissioners, Building and Planning Department, Glenwood Springs, Colorado. CCP. 2008. Colorado Greater Sage -Grouse Statewide Steering Committee (CCP). Colorado Greater Sage -Grouse Conservation Plan, Colorado Division of Wildlife, Denver. CDOW. 2005. Tony Apa, Colorado Division of Wildlife, personal communication. CDOW. 2008a. Colorado Division of Wildlife. Natural Diversity Information Source. http://ndis.nrel.colostate.edu/wildlife.asp. CDOW. 2008b. Colorado Division of Wildlife. Wildlife Species of Concern. Threatened and Endangered List. CDOW Web Home Page: http://wildlife.state.co.us/WildlifeSpecies/SpeciesOfConcern/ThreatenedEndangeredList. CDOW. 2008c. "Recommended Buffer Zones and Seasonal Restrictions for Colorado Raptors." Unpublished Report. Craig, Gerald R. 2002. Recommended Buffer Zones and Seasonal Restrictions for Colorado Raptors. Colorado Division of Wildlife, Denver. WestWater Engineering Page 22 of 23 September 2008 CWMA. 2007. S. Anthony, T. D'Amato, A. Doran, S. Elzinga, J. Powell, I. Schonle, and K. Uhing. Noxious Weeds of Colorado, Ninth Edition. Colorado Weed Management Association, Centennial. Hammerson, G. A. 1999. Amphibians and Reptiles in Colorado, Second Edition. Colorado Division of Wildlife, Denver. Kennedy, P. L., and D. W. Stahlecker.1993. Responsiveness of nesting northern goshawks to taped broadcasts of 3 conspecific calls. Journal of Wildlife Management, 57:249-257. Kershaw, Linda, A. MacKinnon, and J. Pojar. 1998. Plants of the Rocky Mountains. Lone Pine Publishing, Auburn, Washington. Kingery, H. E. 1998. Colorado Breeding Bird Atlas. Colorado Bird Atlas Partnership, Colorado Division of Wildlife, Denver. Maddux, H., L. Fitzpatrick, and W. Noonan. 1993. Colorado River Endangered Fishes Critical Habitat. Biological Support Document. U.S. Fish and Wildlife Service, Utah/Colorado Field Office, Salt Lake City, Utah, 225 pp. NRCS. 2008. U. S. Department of Agriculture, Natural Resources Conservation Service. Web Soil Survey: http://websoilsurvey.nres.usda.gov/. Reid, F. A. 2006. A Field Guide to Mammals of North America, Fourth Edition. Peterson Field Guides. National Audubon Society, National Wildlife Federation, Roger Tory Peterson Institute, New York. Reynolds, R. T., R. T. Graham, M. H. Reiser, R. L. Bassett, P. L. Kennedy, D. A. Boyce Jr., G. Goodwin, R. Smith and E. L Fisher.1992. Management recommendations for the northern goshawk in the southwestern United States. General Technical Report RM - GTR -217, U.S. Department of Agriculture, U.S. Forest Service, Rocky Mountain Forest and Range Experiment Station, Fort Collins, Colorado. Righter, R., R. Levad, C. Dexter, and K. Potter. 2004. Birds of Western Colorado Plateau and Mesa Country. Grand Valley Audubon Society, Grand Junction, Colorado. Spackman, S., B. Jennings, J. Coles, C. Dawson, M. Minton, A. Kratz, and C. Spurrier. 1997. Colorado Rare Plant Field Guide. Prepared for the U.S. Bureau of Land Management, the U.S. Forest Service and the U.S. Fish and Wildlife Service by the Colorado Natural Heritage Program. USFWS. 2002. Birds of Conservation Concern 2002. U.S. Fish and Wildlife Service, Division of Migratory Bird Management, Arlington, Virginia. Whitson, T. D. (editor), L. C. Burrill, S. A. Dewey, D. W. Cudney, B. E. Nelson, R. D. Lee, and Robert Parker. 2004. Weeds of the West, Ninth Edition. Western Society of Weed Science in cooperation with Cooperative Extension Services, University of Wyoming. Laramie. WestWater Engineering Page 23 of 23 September 2008 APPENDIX A Photo 1: Sagebrush habitat in waterline project area Photo 2. Typical aspen grove in waterline project area WestWater Engineering Appendix A — Page 1 September 2008 Photo 3: Active Red-tailed Hawk nest near waterline ROW Photo 4: Greater Sage -Grouse in sagebrush in waterline project area WestWater Engineering Appendix A — Page 2 September 2008 1 w Photo 5: Mule deer fawn in waterline project area Photo 6: Short -horned lizard in waterline project area WestWater Engineering Appendix A — Page 3 September 2008 Report on the Class l Cultural Resource Inventory for a Sensitive Area Study on Private Lands for the Proposed Fresh and Produced Water Lines in Garfield County, Colorado, for Marathon Oil Company GRI Project No. 2858 2 July 2008 Prepared by Carl E. Conner (Principal Investigator) and Barbara Davenport Grand River Institute P.O. Box 3543 Grand Junction, Colorado 81502 State of Colorado Antiquities Permit No. 2008-63 Submitted to Board of County Commissioners Garfield County, Colorado Abstract At the request of Marathon OiI Company (as represented by Cordilleran Compliance Services, Inc.) Grand River Institute conducted a Class I cultural resources inventory for a Sensitive Area Study in relation to an anticipated Special Use Permit Application with Garfield County for a proposed fresh and produced water lines project. The study is for a linear route of —14 miles and is located on the Roan Plateau west of Parachute Creek and east of Conn Creek/Roan Creek. The Class 1 inventory was undertaken to ensure the project's compliance with county, state, and federal laws and regulations governing the identification and protection of cultural resources on privately owned lands that will be affected by a government action. This work was performed under State of Colorado Antiquities Permit No. 2008-63. The purpose of the cultural resources investigation was to identify previously recorded resources within or near the project area that may be adversely affected by the proposed action and to evaluate the potential of additional such resources in the project area. The Class I files search and report preparation were performed during the last week of June 2008. Although sites occur near the project area, none have been recorded within a mile of the proposed pipeline. Accordingly, a determination of "no effect" for the project is recommended pursuant to Section 106 of the National Historic Preservation Act (36 CFR 800). ii Table of Contents Introduction Location of the Project Area Environment Paleoclimatc Files Search Results Archaeological Assessment of Cultural Resources Relevant Historical Background post -1880 Summary and Recotnmendations References 1' List of Figures and Tables Figures 1-5. Project location maps 2-6 Table 1. List of projects previously conducted near the study area 8 Table 2. List of previously recorded cultural resources near the study area 9 iii Introduction At the request of Marathon Oil Company (as represented by Cordilleran Compliance Services, Inc.) Grand River Institute conducted a Class I cultural resources inventory (files search and documents review) for a Sensitive Area Study in relation to an anticipated Special Use Permit Application with Garfield County for a proposed fresh and produced water lines project, a linear route of -14 miles. The Class I files search and report preparation were conducted during the last week of June 2008. This work was performed under State of Colorado Antiquities Permit No. 2008-62 by Carl E. Conner (Principal Investigator) and Barbara J. Davenport. This inventory was undertaken to ensure the project's compliance with state and federal legislation governing the identification and protection of cultural resources on privately owned lands that will be affected by a government action. It was done to meet requirements of the National Historic Preservation Act (as amended in 1992), the National Environmental Policy Act of 1969 (42 U.S.C. 4321), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701), and the Archaeological Resources Protection Act of 1979 (16 U.S.C. 470aa et seq., as amended), and Article 80.1, Colorado Revised Statutes. These laws are concerned with the identification, evaluation, and protection of fragile, non-renewable evidence of human activity, occupation, and endeavor reflected in districts, sites, structures, artifacts, objects, ruins, works of art, architecture, and natural features that were of importance in human events. Such resources tend to be localized and highly sensitive to disturbance. All work was performed according to guidelines set forth by the Office of Archaeology and Historic Preservation (OAIIP) of the Colorado Historical Society. Location of the Project Area The study area is located on the Roan Plateau west of Parachute Creek and east of Conn Creek/Roan Creek. It lies in T. 5 S., R. 96 W., Sections 19, 20, 29, 32, and 33; T. 6 S., R. 96 W., Section 18; and, T. 6 S., R. 97 W., Sections 1, 12, 13, 21, 22, 23, 24 and 28; 6th Principal Meridian (Figures 1-5). Environment The project area is within the Piceance Creek Basin, one of the major geologic subdivisions of Colorado. The Piceance Creek Basin is an elongate structural downwarp of the Colorado Plateau province that apparently began its subsidence approximately 70 million years ago during the Laramide Orogeny. Sediments from surrounding highlands were deposited in the basin, accumulating to a thickness of as much as 9000 feet by the lower Eocene epoch, when subsidence ceased. Regional uplift occurred in the Late Tertiary, and erosion of the area has continued since (Young and Young 1977:43-46). The Green River formation underlies the study area. 1 Composite Quadrangle Map III Circle Dot Gulch (1971) Red Pinnacle (1962\1973) Garfield County, Colorado ArcMap GIS DRG from USGS 7.5 minute series (topographic) Scale 1:58,000 Contour Interval: 40 feet T. 5 S. and T. 6 S., R. 96 W. and R. 97 W., 6th P.M. Private Land — I Figure 1. Project location overview map for Class I cultural resources inventory for the proposed fresh and produced water lines in Garfield County, Colorado for Marathon Oil Company. The proposed pipeline route is indicated. [GRI Project No. 2858, 7/2/08] i • Circle Dot Gulch (1971) Quadrangle Map Garfield County, Colorado ArcMap GIS DRG from USGS 7.5 minute series (topographic) Scale: 1:24,000 Contour Interval: 40 feet T. 5 S. and T. 6 S., R. 96 W. and R. 97 W., 6th P.M. • • i ` •f Private Land \/ i 1 4 T.5�S. F:f _r&--, T. 6 S. e. vJ� x's BLM Land Figure 2. Project location map (1 of 4) for Class I cultural resources inventory for the proposed fresh and produced water lines in Garfield County, Colorado for Marathon Oil Company. The proposed pipeline route is indicated. [GRI Project No. 2858, 7/2/08] '\ 4 t 'J4: 0 (.) I Circle Dot Gulch (1971) Quadrangle Map Garfield County, Colorado ArcMap GIS DRG from USGS 7.5 minute series (topographic) Scale: 1:24,000 Contour Interval: 40 feet T. 6 S., R. 96 W. and R. 97 W., 6th P.M. r i %7 i. )Iii- \ l; -.V 1 / •,,, ) , /01:i _.9 i il = f, Private Land 11„' l f , ` / r ��1 f,f \�/ /, /, O IP. F•t•-• ,1 r` (7. i' :1 Figure 3. Project location map (2 of 4) for Class I cultural resources inventory for the proposed fresh and produced water lines in Garfield County, Colorado for Marathon Oil Company. The proposed pipeline route is indicated. [GRI Project No. 2858, 7/2/08] .1- - -n l! Corral Gg CA Priviate Land Circle Dot Gulch (1971) Quadrangle Map Garfield County, Colorado ArcMap GIS DRG from USGS 7.5 minute series (topographic) Scale: 1:24,000 Contour Interval: 40 feet T. 6 S., R. 97 W., 6th P.M. Possible �� 1 Alternate Route ) ) ■ ogg fi d?6 Figure 4. Project location map (3 of 4) for Class I cultural resources inventory for the proposed fresh and produced water lines in Garfield County, Colorado for Marathon Oil Company. The proposed pipeline route is indicated. [GRI Project No. 2858, 7/2/08] Composite Quadrangle Map Circle Dot Gulch (1971) Red Pinnacle (1962/1973) Garfield County, Colorado +( ArcMap GIS DRG from USGS 7.5 minute series (topographic) Scale: 1:24,000 Contour Interval: 40 feet , T. 6 S., R. 97 W., 6th P.M. I / ,' 7 ., y ,./ I (\ / Private' Land / Figure 5. Project location map (4 of 4) for Class I cultural resources inventory for the proposed fresh and produced water lines in Garfield County, Colorado for Marathon Oil Company. The proposed pipeline route is indicated. [GRI Project No. 2858, 7/2/08] Elevation of the project area ranges from about 8000 feet -to -8400 feet, which falls within the Transitional Zone. The natural vegetation cover in the canyon bottoms is big sagebrush sagebrush/grasslands. The higher elevation ridges have groves of aspen, common particularly at the heads of drainages. On the ridge tops and sides, the understory is quite thick, consisting of chokecherry, smooth maple, servicebeny, and wild rose. On the steep slopes bordering these uplands is found the only coniferous forest type of the project area, the Douglas fir. Associated understory is light --predominantly snowberry, servicebeny, and barberry. The flat terrain of the project areas is occupied by mountain big sage and western snowbeny. Gentle north and east - facing aspects support a mountain brush community—Utah servicebeny, gambel oak, and snowberry. Ground cover ranges from 80 to 100 percent. Soils on ridgetops are shallow loams with intermixed shale, or fractured shale. Away from the ridge, soils deepen and become darker and loamier. Nineteen mammal species—among them the deer mouse, least chipmunk, chickaree, short - tailed weasel, mule deer, and black bear—and 38 bird species are known in the Douglas fir community. Amid the aspen environment are 16 mammals—including the deer mouse, masked shrew, least chipmunk, northern pocket gopher, montane vole, porcupine, striped skunk, short - tailed weasel, red fox, deer, and elk—and 30 birds. The mountain brush community attracts 37 bird species and 27 mammal species, among these the rock squirrel, bushy -tailed woodrat, deer mouse, porcupine, least chipmunk, beaver, muskrat, raccoon, striped skunk, coyote, red fox, and the short -tailed weasel (Union Oil Company, Energy Mining Division 1982:H14-18). Present land use includes energy development, open range for domestic animals, and modern hunting. Climatically, the region is characterized as having a steppe -type climate. Average annual rainfall ranges roughly between 12 and 24 inches. On the Roan Plateau at 8000 feet, the average annual rainfall is 25.66 inches and the average annual temperature is 35.5° F. (ibid.:182, Tables K.1.5 and K.1.7). Temperatures have varied between -20 degrees F. in winter and 90 degrees F. in summer with a frost free seasonal range of 70 to 100 days. Agriculture is limited by the low rainfall, a short period of frost -free days, and low winter temperatures (USDA SCS 1978). Paleocliinate Relatively small changes in past climatic conditions altered the exploitative potential of an area and put stress upon aboriginal cultures by requiring adjustments in their subsistence patterns. Therefore, reconstruction of paleoenvironmental conditions is essential to the understanding of population movement and cultural change in prehistoric times (Euler et al. 1979). To interpret whatever changes are seen in the archaeological record, an account of fluctuations in past climatic conditions must be available or inferences must be made from studies done in surrounding area. Generally, only gross climatic trends have been established for western North America prior to 2000 BP (Antevs 1955; Berry and Berry 1986; Mehringer 1967; Madsen 1982; Wendlund and Bryson 1974; Peterson 1981). Scientific data derived from investigations of prehistoric cultures and geoclimatic and bioclimatic conditions on the southern 7 1 1 1 1 1 1 1 1 1 r 1 1 1 1 1 1 1 1 1 Colorado Plateau over the past two millennia have achieved a much greater degree of resolution (Dean et al. 1985). Files Search Results Cultural resource investigations in the region have yielded surface diagnostic artifacts and excavated cultural materials consistent with the regional cultural history. Evidence provided by chronometric diagnostic artifacts and radiocarbon analyses indicate regional occupation during the Paleoindian Era, Archaic Era, Formative Era, and Protohistoric Era. Historic records suggest occupation or use of the region by EuroAmerican trappers, settlers, miners, and ranchers as well. Overviews of the prehistory and history of the region are provided in documents published by the Colorado Council of Professional Archaeologists entitled Colorado Prehistory: A Context for the Northern Colorado Plateau (Reed and Metcalf 1999), and by the Colorado Historical Society entitled Colorado Plateau Country Historic Context (Husband 1984). Many of the prehistoric sites that were previously recorded in the Roan Plateau area have been identified as open lithic scatters. Most are likely to have been open camps (albeit for a short period) as there are no local lithic procurement sites in the Basin. The remains of wickiups (brush shelters) have been identified at a relatively high number of sites in the area. Historic site types recorded in the region have been ranch complexes, cabins, trails/roads, and herder camps. A file search for known cultural resources within the project area was made through the Colorado Historical Society's Office of Archaeology and Historic Preservation. This review identified three reports that have been done in the general area, which are listed in Table 1. The files search identified one site that occurs within about one mile of the study area (Table 2). Table 1. List of projects previously conducted within about 1.0 mile of the study area, [T. 5 S., R. 96 W., Sections 19, 20, 28, 29, 30, 32 and 33 T. 6 S., R. 97 W., Sections 1, 2, 11, 12, 13, 14, 15, 21, 22, 23, 24, 26, 27, and 28 T. 6 S., R. 96 W., Sections 7 and 18] Survey ID Project/author/date GF.LM.NR697 Title: Class 1II Cultural Resource Inventory for Oxy USA, Inc. #23-15 Well Pad and Access in Garfield County, Colorado Author: Brogan, John M. Date: 12/10/2003 Contractor: Metcalf Archaeological Consultants 8 Survey ID Project/author/date MC.LM.R431 Title: Class III Cultural Resource Inventory Report for the Parachute 5GF1175 Lateral Project in Garfield and Rio Blanco Counties, Colorado, for Not Eligible - Officially Northwest Pipeline Corporation (GRI Project 2594)(Original and One Addendum) Author: Conner, Carl E. and Barbara J. Davenport Date: 12/01/2005 Contractor: Grand River Institute GF.LIvI.NR836 Title: Eight Conoco -Phillips Well Pads and Associated Access Roads 2007 Drilling Program on the Roan Plateau Garfield County, Colorado (BLM-WRFO# 07-54-09) Author: Metcalf, Michael D. Date: 11/0 I /2007 Contractor: Metcalf Archaeological Consultants Table 2. List of previously recorded sites within about 1.0 mile of the project area. Site ID Site Type Assessment UTM Coordinates (NAD 27) 5GF1175 Historic Cabin Not Eligible - Officially 12:7 39 720mE 43 78 790mN Archaeological Assessment of Cultural Resources in the Region Previous archaeological studies in the general vicinity have suggested regional occupation for as long as 8000 years, although recently an inventory of block units south of this study area within the Doghead GAP (Conner et al. 2006) provided direct evidence of the presence of Foothill - Mountain Paleoindian occupation at 5GF1323, which pushes the regional prehistoric occupation dates back to about 1 0,000 yr BP. Historic records also indicate a permanent Euro -American presence in the region began as early as the late 1880's. Notably, many of the newly and previously recorded resources in the general area indicate it was intensively occupied during the Protohistoric Era. In fact, a Ute Trail is known to have crossed through the study area and branched in two directions: to Roan and Parachute Creeks. Unfortunately for many of the sites where wickiups were present, post -cutting and wood collection by the Historic EuroAmerican settlers and ranchers over the past 125 years has nearly wiped out evidence of their presence. Also, surface collection of diagnostic artifacts has impacted the sites and affected the assignment of cultural/temporal associations. 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 9 1 1 In general, although the study area was probably not continuously occupied prehistorically, it seems to have offered an attractive environment for gathering, floral processing, hunting, as well as lithic procurement and processing. Site density in these higher elevations is relatively low, probably due to two factors: access to permanent water, and strategic topographical positioning. Campsites are often located near the springs or stream convergences for reasons of acquiring water and for the procurement/processing of floral and faunal resources. The apparent differences in the characteristics of the upland and lowland sites may be due to factors other than cultural selection. The lowland sites are subjected to more artifact collecting than the uplands, and the areas along the Colorado River have been subject to few cultural resource surveys. The upland area exhibits a very thick vegetation cover that may be limiting discovery of features and additional artifacts. Lowland sites exhibit greater variability in site types. While the uplands are limited to isolated finds, open camps, and lithic scatters; the lowlands contain these site types and open architectural sites, sheltered sites, and a single tool stone procurement area. The lowland sites contain higher frequencies of cultural features or evidence of features. These features include fire -cracked rock scatters, charcoal stains, hearths, stone structures, and wickiups. All of the prehistoric sites contain low numbers of artifacts, including very limited numbers of debitage, bifacial tools and expedient tools. This suggests conservation, curation, and reuse of flaked stone tools in an area where tool material sources are limited. Lowland sites tend to be situated in the pinyon juniper vegetation community in greater frequencies than is suggested by the relative proportion of the pinyon juniper to other vegetation communities. The sites in the uplands are distributed proportionally to the size of the vegetation conununities, with the mountain shrub and sagebrush communities exhibiting the highest site density. Too little is known of the age of the sites to make any definitive statements. The distribution of site ages based on projectile points and ceramics is generally the same as portrayed in Reed and Metcalf (1999), but the lack of absolute dating precludes any conclusions in this area. Lithic scatters exhibit a smaller site size than open camps in both the lowland and upland settings. Isolated finds are distributed across a wider range of slopes than lithic scatters or open camps. The differences in the type and distribution of historic sites are: Sites in the uplands are limited to sheep and cattle raising activities and are primarily post -1889. Sites in the uplands are distributed proportionally to the size of the vegetation communities, with the mountain shrub and sagebrush communities exhibiting the highest site density. Sites in the lowlands display a greater diversity in types and are found mainly in the pinyon juniper and sagebrush zones. The historic sites in the lowlands are concentrated near transportation corridors and near permanent water sources, particularly the habitation sites. Sites indicative of particular economic activities are spread across the landscape. 10 During 1980, the BLM 's Glenwood Springs Resource Area was subject to an archaeological survey that randomly sampled three percent of its managed lands. A total of 17,400 acres was surveyed for cultural resources. As a result, 58 prehistoric sites and 2 historic sites were recorded, an average of about 2 sites per section (.0034/acre). Three types of prehistoric sites were distinguished by the study; limited activity areas, short-term camps, and large habitation sites. These were classified on the basis of site size and the diversity of artifacts/activities represented. Notably, the sites were unevenly distributed and varied by vegetation community. The highest site density, about 5.0 sites/section (.0078/acre), occurred in pinyon/juniper and sagebrush communities. Concurrently, the greatest number of sites located during the survey tended to occur in or near the pinyon/juniper community. Other environmental factors found to be important during the statistical analysis of the settlement patterns included 1) vertical distance between the site and the primary water source is a greater controlling factor that the horizontal distance, 2) sites tend to be near or on points of vantage, 3) sites tend to be located in forested areas, preferably with a southern exposure and, 4) sites tend to occur on flat ground (less than 40% grade) in areas of relatively low surface relief (Burgess et al. 1980:108-120, 138-139). In general, the region exhibits a relatively low site density and sites tend to cluster near permanent water sources. Relevant Historical Background post -1880 The Ute people occupied large areas of Western Colorado until about 1881. Due to the White River Ute's discontent that lead to the "Meeker Massacre," as the incident became know, a congressional investigation lead to the Treaty of 1880 that stipulated the removal of the White River bands to the Uintah Reservation in northeastern Utah. The Uncompahgre band was to be given a small reservation in the vicinity of the confluence of the Colorado and Gunnison Rivers. Aware of the value of these agricultural lands, however, the commission charged with enforcing the terms of the treaty, under the direction of Otto Mears, manipulated the location process using a loophole in the treaty language, and the Uncornpahgres were given lands in Utah near the Uintah Reservation. The Southern Ute bands were left on the small reservation in southwestern Colorado that had been given them by the Treaty of 1873. On 1 September 1881, the last of the Utes were moved to their new reservations in Utah, and western Colorado was completely opened to the whites. Interest in the potential agricultural lands of western Colorado (namely the Uncompahgre, Gunnison, Colorado, Dolores, San Miguel, White, and La Plata River valleys) had been growing for some time prior to the Utes' banishment, and by the spring of 1881 frontier towns closest to the Ute lands were "crowded with people, anxious to enter the Reservation and take possession of the most desirable locations (Haskell 1886:2)." Only days after the last of the Utes had been expelled, settlers began rushing onto the reservation lands. Settlement activity spread quickly --during the autumn months of 1881 land claims were staked, townsites were chosen, and railroad routes were surveyed (Haskell 1886, Borland 1952, Rait 1932). However, because the former reservation lands were not officially declared public lands until August 1882, the first year of settlement activity was marked by a degree of uncertainty regarding the legality of land claims. When finally announced, the 1882 declaration did not allow home -stead entries on the newly opened lands, but only pre - 11 emptions, or cash entries, at the rate of $1.25 per acre for agricultural land, $5.00 per acre for mineral land (Borland 1952:75). By 1895, the major portion of the land along Mamm Creek had been claimed, mostly under Cash Entry patents. The settlers raised their own food and availed themselves of the plentiful game in the area. Gardens, hay fields, and orchards were planted, and irrigation ditches were dug to divert the creek's water to cultivated fields. Large herds of cattle and sheep were accumulating, grazing the valley floor and the vast open range above, driven to the uplands via trails leading up the various gulches. Because the area was still fairly remote, competition for lands had not yet begun. Travel in and out of the Rifle area was restricted to horse and/or wagon. There were several well-developed Ute trails, and in the early 1880s, the federal government had built the aforementioned road between the White and Grand Valleys. In 1885 a toll road opened along the Grand River between Rifle and Grand Junction; prior to the building of this road through DeBeque Canyon, the route to Grand Junction had been a two-week journey "through the Cedar Hills, up Kimball Creek...down the "Sawtooth Range to Fruita and then back to Grand Junction" (Murray 1973:5). But, despite this network of trails and roads, Parachute remained pretty much isolated. With the coming of the D&RG railroad in 1890, however, new pressures were brought to the area. More and more settlers arrived, competing not only for arable land but also for grazing privileges on the unpatented public domain of the sun'ounding uplands. Increasing numbers of cattle and sheep were imported, some being run as commission cattle for outside investors (ibid:84). Open warfare between cattle and sheep ranchers ensued, resulting in the slaughter of thousands of animals. Four thousand sheep belonging to Messrs. Starkey and Charlie Brown were killed by masked men who tried to drive the animals over cliffs at the head of a Clear Creek tributary and above the Granlee Schoolhouse (LaPoint et al. 1981:3-51). Another 4000 sheep belonging to J.B. Hurlburt were driven to their deaths above Ben Good Creek, a tributary of East Fork. The animosity between cattlemen and sheepmen continued into the 1900s. Finally, Congress passed the Taylor Grazing Act in 1934, bringing to an end to the free range by providing for regulated grazing and an end to the Sheep -Cattle Wars. Cash Entry, Desert Land, and Homestead patents continued to be granted into the 1920s and 30s. Ranching and farming were still the most important economic activities in the Parachute area and remained so until the 1960s and 1 970s when many of the farms and ranches of the region were bought up by large companies interested in the large-scale extraction of oil shale and natural gas. Summary and Recommendations The National Historic Preservation Act of 1966 (NHPA) directs that federal agencies protect cultural resources that possess significant values. Significance is a quality of cultural resource properties that qualifies them for inclusion in the NRNP. The statements of significance 12 included in this report are field assessments that support management recommendations to the State Historic Preservation Officer (SHPO). The final determination of site significance is made by the controlling agency in consultation with the SHPO. The Code of Federal Regulations was used as a guide for site evaluations. Titles 36 CFR 50, 36 CFR 800, and 36 CFR 64 are concerned with the concepts of significance and (possible) historic value of cultural resources. Titles 36 CFR 65 and 36 CFR 66 provide standards for the conduct of significant and scientific data recovery activities. Finally, Title 36 CFR 60.6 establishes the measure of significance that is critical to the determination of a site's NRNP eligibility, which is used to assess a site's research potential: The quality of significance in American history, architecture, archaeology, and culture is present in districts, sites, buildings, structures, and objects of State and local importance that possess integrity of location, design, setting, materials, workmanship, feeling, and association, and a) that are associated with events that have made a significant contribution to the broad patterns of history; or b) that are associated with the lives of persons significant in our past; or c) that embody the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction; or d) that have yielded, or may be likely to yield, information important in the prehistory or history. The eligibility determination and consultation process is guided by Section 106 of the NHPA (36 CFR 60, 63, and 800). Final determinations of National Register eligibility and effect are made by the controlling agencies in consultation with the State Historic Preservation Officer. The Class I files search and report preparation were performed during the last week of June 2008. Although sites occur near the project area, none have been recorded within a mile of the proposed pipeline. Accordingly, a determination of "no effect" for the project is recommended pursuant to Section 106 of the National Historic Preservation Act (36 CFR 800). 13 References Antevs, E. 1955 Geologic -climate dating in the west. American Antiquity 20:317-355. Borland, Lois 1952 Ho for the reservation; settlement of the Western Slope. Colorado Magazine 29(1):56-75. Berry, Claudia F. and Michael S. Berry 1986 Chronological and Conceptual Models of the Southwestern Archaic. In: Anthropology of the Desert West, ed. by Carol J. Condie and Don D. Fowler, pp. 253-327. University of Utah Anthropological Papers No. 110. Salt Lake City. Burgess, Robert J.; Kenneth L. Kvanrrne; Paul R. Nickens, Alan D. Reed; and Gordon C. Tucker 1980 Class II cultural resource inventory report of the Glenwood Springs Resource Area, Grand Junction District, Colorado. Ms on file, Bureau of Land Management, Grand Junction. Conner, Carl E., James C. Miller and Nicole Darnell 2006 Class III (intensive) cultural resource inventory of three block acreages within the South Parachute Geographic Area Plan (GAP) domain in Garfield County, Colorado, for Williams Production RMT. Ms on file, Bureau of Land Management, Glenwood Springs Field Office. Dean, Jeffery S.; R. C. Euler; G. J. Gumerman; F. Plog; R. H. Hevly; and T. N.V. Karlstrom 1985 Human behavior, demography and paleoenvironment on the Colorado Plateau. American Antiquity 50(3):537-554. Euler, Robert C.; G. J. Gumerman; Thor N.V. Karlstrom; J, S. Dean; and Richard H. Hevly 1979 The Colorado PIateaus: Cultural dynamics and paleoenvironment. Science 205(4411):1089-1101. Haskell, Charles W. 1886 History and Description of Mesa County, Colorado. Edited and published by the Mesa County Democrat, Grand Junction. Husband, Michael B. 1984 Colorado Plateau Country Historic Context. Colorado Historical Society, Denver. 14 LaPoint, Halcyon, Brian Aivazian, and Slimy Smith 1981 Cultural resources inventory baseline report for the Clear Creek Property, Garfield County, Colorado, Volume I. Laboratory of Public Archaeology, Colorado State University, Fort Collins. Madsen, David B. 1982 Great Basin paleoenvironments: summary and integration. In:Mand and Environment in the Great Basin, D.B. Madsen and J.F. O'Connell, editors. Society of American Archaeology Papers No. 2, pp.102-104. Washington, D.C. Mehringer, Peter J. 1967 Pollen analysis and the alluvial chronology. The Kiva 32:96-101. Murray, Erlene D. 1973 Lest We Forget—A Short _Riskily of Early Grand Valley, Colorado, Originally called Parachute, Colorado. Quahada, Inc., Grand Junction. Peterson, Kenneth P. 1981 10,000 years of change reconstructed from fossil pollen, La Plata Mountains, southwestern Colorado. Unpublished Ph.D. dissertation, Department of Anthropology, Washington State University, Seattle. Rait, Maly 1932 History of the Grand Valley. M.A. thesis, University of Colorado, Boulder. Reed, Alan D. and Michael D. Metcalf 1999 Colorado Prehistory: A Context for the Northern Colorado River Basin. Colorado Historical Society, Denver. Union Oil Company, Energy Mining Division 1982 Colorado Mined Land Reclamation Board Permit Application. Phase 11: Parachute Creek Shale Oil Program. Volumes VI and VII. Union Oil Company of California, Parachute, USDA Soil Conservation Service 1978 Technical Guide IIE: Range Site Descriptions. Wendlund, Wayne M. and Reid A. Bryson 1974 Dating climatic episodes of the Holocene. Quaternaty Research 4:9-24. Young, Robert 0. and Joann W. 1977 Colorado West, Land of Geology and Wildflowers. Wheelwright Press, Ltd. 15 STATE OF COLORADO Bill Ritter, Jr., Governor James B. Martin, Executive Director Dedicated to protecting and improving the health and environment of the people of Colorado 4300 Cherry Creek Dr. S. Denver, Colorado 80246-1530 Phone (303) 692-2000 TDD Line (303) 691-7700 Located in Glendale, Colorado http://www.cdphe.state.co.us June 20, 2007 Laboratory Services Division 8100 Lowry Blvd. Denver, Colorado 80230-6928 (303) 692-3090 R.V. Coleman, Operations Mgr. Marathon Oil Co., P.O. Box 3128 Houston, TX 77253-3128 713/296-2311 RE: Final Permit, Colorado Discharge Permit System — Stormwater Certification No: COR -03C052 Piceance Area Garfield County Local Contact: R.V. Coleman, Ops. Mgr. 970/245-5233 Dear Sir or Madam: Colorado Department of Public Health and Environment Enclosed please find a copy of the new permit and certification which have been re -issued to you under the Colorado Water Quality Control Act. Your old permit expires on June 30, 2007. This is a renewal to the permit, and replaces the old one. See page 2 of the Rationale (the pages in italics) for a summary of the changes to the permit. Your Certification under the permit requires that specific actions be performed at designated times. You are legally obligated to comply with all terms and conditions of the permit. Please read the permit and certification. If you have any questions please visit our website at : www.cdphe.state.co.us/wq/permitsunit/stormwater or contact Matt Czahor at (303) 692-3517. Sincerely, .) , -�� Kathryn Dolan Stormwater Program Coordinator Permits Unit WATER QUALITY CONTROL DIVISION xc: Regional Council of Governments Local County Health Department District Engineer, Technical Services, WQCD Permit File STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT WATER QUALITY CONTROL DIVISION TELEPHONE: (303) 692-3500 CERTIFICATION TO DISCHARGE UNDER CDPS GENERAL PERMIT COR -030000 STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION Certification Number COR03C052 This Certification to Discharge specifically authorizes: Marathon Oil Co. LEGAL CONTACT: R. V. Coleman, Operations Mgr. Marathon Oil Co. P.O. Box3128 Houston, TX 77253-3128 Phone # 713/296-2311 rvcoleman@marathonoil. com LOCAL CONTACT: R. V. Coleman, Ops. Mgr., Phone # 970/245-5233 rvcoleman@marathonoil.com During the Construction Activity: Oil and Gas Production and/or Exploration to discharge stormwater from the facility identified as Piceance Area which is located at: Parachute Creek & Garden Gulch area , Co Latitude 39/31/00, Longitude 108/10/00 In Garfield County to: Garden Gulch -- Parachute Creek Anticipated Activity begins 06/05/2007 continuing through 04/30/2012 On >5 acres (>5 acres disturbed) Certification is effective: 07/01/2007 Certification Expires: 06/30/2012 Annual Fee: $245.00 (DO NOT PAY NOW — A prorated bill will be sent shortly.) Page 1 of 22 Colorado Department of Public Health & Environment FOR AGENCY USE ONLY Water Quality Control Division WQCD-P-B2 REC 4300 Cherry Creek Drive South EFF Denver, Colorado 80246-1530 YEAR MONTH DAY INACTIVATION NOTICE FOR CONSTRUCTION STORMWATER DISCHARGE GENERAL PERMIT CERTIFICATION Please print or type. Form must be filled out completely. Certification Number: COR -03 Taxpayer ID or EIN Permittee (Company) Name: Permittee Address: Phone No. ( ) Site/Facility Name: Construction Site Address/Location: County: Contact Person: Summary of work performed and description of final site stabilization: I certify under penalty of law that by the date of my signature below, all disturbed soils at the identified construction site have been finally stabilized; all temporary erosion and sediment control measures have been removed; all construction and equipment maintenance wastes have been disposed of properly; and all elements of the Stormwater Management Plan have been completed. I understand that by submitting this notice of inactivation, 1 am no longer authorized to discharge stormwater associated with construction activity by the general permit. I understand that discharging pollutants in stormwater associated with construction activities to the waters of the State of Colorado, where such discharges are not authorized by a CDPS permit, is unlawful under the Colorado Water Quality Control Act and the Clean Water Act. I certify under penalty of law that I have personally examined and am familiar with the information submitted herein, and based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. (See 18 U.S.0 1001 and 33 U.S.C. 1319.) Signature of Permit Applicant (Legally Responsible Party) Date Signed Name (printed) Title HIGHLIGHTS CONSTRUCTION ACTIVITY (renewal) STORMWATER GENERAL PERMIT PERMIT REQUIREMENTS: * Inspections: Inspection of stormwater management system required at least every 14 days and after any precipitation or snowmelt event that causes surface erosion. (See Inspections, page 12 of the permit.) * Records: Records of inspections must be kept and be available for review by the Division. * Stormwater Management Plan (SWMP): The SWMP requirements have changed slightly. You may need to amend your SWMP — see the Rationale, page 3. Any needed changes must be completed by October 1, 2007. -A copy of the SWMP must be kept on site at all times. PERMIT FEE: * Send payment only when you receive an invoice (sent once a year). PERMIT TERMINATION AND TRANSFER: * If the facility is finally stabilized, you may inactivate the permit, using the enclosed Division form. * "Final stabilization" is reached when all the construction is complete, paving is finished, and the vegetation (grass, etc.) is established, not just reseeded. See permit, page 9. * If the site changes ownership, you should transfer the permit to the new owner. * If part of the site will be sold to a new owner, you will need to reassign permit coverage. * Forms for these actions are available on our website, below. Also see page 5 of the permit. QUESTIONS? * www.cdphe.state.co.us/wq/PermitsUnit/stormwater * Email cdphe.wgstorm@state.co.us * Or call (303)692-3517, ask for Matt Czahor or Kathy Rosow 6/07 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Page 2 of 22 Permit No. COR -030000 CDPS GENERAL PERMIT STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITY AUTHORIZATION TO DISCHARGE UNDER THE COLORADO DISCHARGE PERMIT SYSTEM In compliance with the provisions of the Colorado Water Quality Control Act, (25-8-101 et seq., CRS, I973 as amended) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq.; the "Act"), this permit authorizes the discharge of stormwater associated with construction activities (and specific allowable non-stormwater discharges in accordance with Part I.D.3 of the permit) certified under this permit, from those locations specified throughout the State of Colorado to specified waters of the State. Such discharges shall be in accordance with the conditions of this permit. This permit specifically authorizes the facility listed on page 1 of this permit to discharge, as of this date, in accordance' with permit requirements and conditions set forth in Parts I and II hereof. All discharges authorized herein shall be consistent with the terms and conditions of this permit. This permit and the authorization to discharge shall expire at midnight, June 30, 2012. Issued and Signed this 318t day of May, 2007 COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT Janet S. Kieler Permits Section Manager Water Quality Control Division SIGNED AND ISSUED MAY 31, 2007 EFFECTIVE JULY 1, 2007 TABLE OF CONTENTS PART I 1 1 1 A. COVERAGE UNDER THIS PERMIT 3 1. Authority to Discharge 3 I a) Applicable Sections 3 b) Oil and Gas Construction 3 2. Definitions 3 3. Permit Coverage Without Application — Qualifying Local Programs 3 a) Applicable Sections 3 b) Local Agency Authority 4 c) Permit Coverage Termination 4 d) Compliance with Qualifying Local Program 4 e) Full Permit Applicability 4 4. Application, Due Dates 4 a) Application Due Dates 4 b) Summary of Application 4 5. Permit Certification Procedures 4 a) Request for Additional Information 4 b) Automatic Coverage 5 c) Individual Permit Required 5 d) General vs. Individual Permit Coverage 5 e) Local Agency Authority 5 6. Inactivation Notice 5 7. Transfer of Permit 5 8. Reassignment of Permit 5 9. Sale of Residence to Homeowners 6 10. Permit Expiration Date 6 11. Individual Permit Criteria 6 B. STORMWATER MANAGEMENT PLAN — GENERAL REQUIREMENTS 6 C. STORMWATER MANAGEMENT PLAN — CONTENTS 7 1. Site Description 7 2. Site Map 7 3. Stormwater Management Controls 8 a) SWMP Administrator 8 b) Identification of Potential Pollutant Sources 8 c) Best Management Practices (BMPs) for Stormwater Pollution Prevention. 8 4. Final Stabilization and Long-term Stormwater Management 9 5. Inspection and Maintenance 10 D. TERMS AND CONDITIONS 10 1. General Limitations 10 2. BMP Implementation and Design Standards 10 3. Prohibition of Non-Stormwater Discharges 11 4. Releases in Excess of Reportable Quantities 11 5. SWMP Requirements 11 a) SWMP Preparation and Implementation 11 b) SWMP Retention Requirements 11 c) SWMP Review/Changes 11 d) Responsive SWMP Changes 12 6. Inspections 12 a) Minimum Inspection Schedule 12 b) Inspection Requirements 13 c) Required Actions Following Site Inspections 13 7. BMP Maintenance 13 8. Replacement and Failed BMPs 14 9. Reporting 14 1 1 s 1 1 1 1 1 1 -2a - TABLE OF CONTENTS (cont.) 10. SWMP Availability 14 11. Total Maximum Daily Load (TMDL) 14 E. ADDITIONAL DEFINITIONS 15 F. GENERAL REQUIREMENTS 16 1. Signatory Requirements 16 2. Retention of Records 16 3. Monitoring 16 PART II A. MANAGEMENT REQUIREMENTS 17 1. Amending a Permit Certification 17 2. Special Notifications - Definitions 17 3. Noncompliance Notification 17 4. Submission of Incorrect or Incomplete Information 18 5. Bypass 18 6. Upsets 18 7. Removed Substances 18 8. Minimization of Adverse Impact 18 9. Reduction, Loss, or Failure of Stormwater Controls 19 10. Proper Operation and Maintenance 19 B. RESPONSIBILITIES 19 1. Inspections and Right to Entry 19 2. Duty to Provide Information 19 3. Transfer of Ownership or Control 19 4. Modification, Suspension, or Revocation of Permit By Division 20 5. Permit Violations 21 6. Legal Responsibilities 21 7. Severability 21 8. Renewal Application 21 9. Confidentiality 21 10. Fees 21 11. Requiring an Individual CDPS Permit 22 -2b- PART 1 A. COVERAGE UNDER THIS PERMIT I. Authority to Discharee PART 1 Permit - Page 3 Permit No. COR -030000 Under this permit, facilities are granted authorization to discharge stormwater associated with construction activities into waters of the state of Colorado. This permit also authorizes the discharge of specific allowable non-stormwater discharges, in accordance with Part 1.D.3 of the permit, which includes discharges to the ground. This includes stormwater discharges from areas that are dedicated to producing earthen materials, such as soils, sand and gravel, for use at a single construction site (i.e., bonow or fill areas). This permit also authorizes stormwater discharges from dedicated asphalt batch plants and dedicated concrete batch plants. (Coverage under the construction site permit is not required for batch plants if they have alternate CDPS permit coverage.) This permit does not authorize the discharge of mine water or process water from such areas. a) Applicable Sections: In accordance with Part I.A.3 of this permit, some parts of this permit do not apply to sites covered under a Qualifying Local Program, as defined in I.A.2.d. For sites not covered by a Qualifying Local Program, all parts of the permit apply except Part I.A.3. The permittee will be responsible for determining and then complying with the applicable sections. b) Oil and Gas Construction: Stormwater discharges associated with construction activities directly related to oil and gas exploration, production, processing, and treatment operations or transmission facilities are regulated under the Colorado Discharge Permit System Regulations (5CCR 1002-61), and require coverage under this permit in accordance with that regulation. However, references in this permit to specific authority under the Federal Clean Water Act (CWA) do not apply to stormwater discharges associated with these oil and gas related construction activities, to the extent that the references are limited by the federal Energy Policy Act of 2005. 2. Definitions a) Stormwater: Stormwater is precipitation -induced surface runoff. b) Construction activity: Construction activity refers to ground surface disturbing activities, which include, but are not limited to, clearing, grading, excavation, demolition, installation of new or improved haul roads and access roads, staging areas, stockpiling of fill materials, and borrow areas. Construction does not include routine maintenance to maintain original line and grade, hydraulic capacity, or original purpose of the facility. c) Small construction activity: Stormwater discharge associated with small construction activity means the discharge of stormwater from construction activities that result in land disturbance of equal to or greater than one acre and less than five acres. Small construction activity also includes the disturbance of less than one acre of total land area that is part of a larger common plan of development or sale, if the larger common plan will ultimately disturb equal to or greater than one and less than five acres. d) Qualifying Local Program: This permit includes conditions that incorporate qualifying local erosion and sediment control program (Qualifying Local Program) requirements by reference. A Qualifying Local Program is a municipal stormwater program for stormwater discharges associated with small construction activity that has been formally approved by the Division. Other Definitions: Definitions of additional terms can be found in Part I.E. of this permit. 3. Permit Coverage Without Application — for small construction activities under a Qualifying Local Program only If a small construction site is within the jurisdiction of a Qualifying Local Program, the operator of the construction activity is authorized to discharge stormwater associated with small construction activity under this general permit without the submittal of an application to the Division. a) Applicable Sections: For sites covered by a Qualifying Local Program, only Parts 1.A.1, 1.A.2, 1.A.3, I.D.1, I.D.2, 1.D.3, I.D.4, I.D.7, I.D.8, I.D.1 1, I.E and Part II of this permit, with the exception of Parts II.A.1, 1I.B.3, I1.B.8, and 11.B10, apply.. PART 1 Permit - Page 4 Permit No. COR -030000 A. COVERAGE UNDER THIS PERMIT (cont.) b) Local Agency Authority: This permit does not pre-empt or supersede the authority of local agencies to prohibit, restrict, or control discharges of stormwater to storm drain systems or other water courses within their jurisdiction. c) Permit Coverage Termination: When a site under a Qualifying Local Program has been finally stabilized, coverage under this permit is automatically terminated. d) Compliance with Qualifying Local Program: A construction site operator that has authorization to discharge under this permit under Part I.A.3 shall comply with the requirements of the Qualifying Local Program with jurisdiction over the site. e) Full Permit Applicability: The Division may require any operator within the jurisdiction of a Qualifying Local Program covered under this permit to apply for and obtain coverage under the full requirements of this permit. The operator must be notified in writing that an application for full coverage is required. When a permit certification under this permit is issued to an operator that would otherwise be covered under Part 1.A.3 of this permit, the full requirements of this permit replace the requirements as per Part IA.3 of this permit, upon the effective date of the permit certification. A site brought under the full requirements of this permit must still comply with local stormwater management requirements, policies or guidelines as required by Part I.D.1.g of this permit. 4. Application, Due Dates a) Application Due Dates: At least ten calendar days prior to the commencement of construction activities, the applicant shall submit an application form as provided by the Division, with a certification that the Stormwater Management Plan (SWMP) is complete. One original completed discharge permit application shall be submitted, by mail or hand delivery, to: Colorado Depai lment of Public Health and Environment Water Quality Control Division WQCD-Permits-B2 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 b) Summary of Application: The application requires, at a minimum. the following: 1) The applicant's company name; address; telephone n `oer; and email address (if available); whether the applicant is the owner, developer, or contractor; and local contact information; 2) Project name, address, county and location of the construction site, including the latitude and longitude to the nearest 15 seconds of the approximate center of the construction activity; 3) Legal description or map of the construction site; 4) Estimates of: the total area of the site, the area of the site that is expected to be disturbed, and the total area of the larger common plan of development or sale to undergo disturbance; 5) The nature of the construction activity; 6) The anticipated start date and final stabilization date for the project; 7) The name of the receiving water(s), or the municipal separate storm sewer system and the ultimate (i.e., named) receiving water(s); 8) Certification that the SWMP for the construction site is complete (see Part I.C. below); and 9) The signature of the applicant, signed in accordance with Part I.F.1 of this permit. 5. Permit Certification Procedures If this general permit is appropriate for the applicant's operation, then a certification will be developed and the applicant will be authorized to discharge stormwater under this general permit. a) Request for Additional information: The Division shall have up to ten calendar days after receipt of the above information to request additional data and/or deny the authorization for any particular discharge. Upon receipt of additional information, the Division shall have an additional ten calendar days to issue or deny authorization for the particular discharge. (Notification of denial shall be by letter, in cases where coverage under an alternate general permit or an individual permit is required, instead of coverage under this permit.) PART 1 Permit - Page 5 Permit No. COR -030000 A. COVERAGE UNDER THIS PERMIT (cont.) b) Automatic Coverage: If the applicant does not receive a request for additional information or a notification of denial from the Division dated within ten calendar days of receipt of the application by the Division, authorization to discharge in accordance with the conditions of this permit shall be deemed granted. c) Individual Permit Required: If, after evaluation of the application (or additional information, such as the SWMP), it is found that this general permit is not appropriate for the operation, then the application will be processed as one for an individual permit. The applicant will be notified of the Division's decision to deny certification under this general permit. For an individual permit, additional information may be requested, and 180 days may be required to process the application and issue the permit. At the Division's discretion, temporary coverage under this general permit may be allowed until the individual permit goes into effect. d) General vs. Individual Permit Coverage: Any perniittee authorized by this permit may request to be excluded from the coverage of this permit by applying for an individual CDPS permit. The permittee shall submit an individual application, with reasons supporting the request, to the Division at least 180 days prior to any discharge. e) Local Agency Authority: This permit does not pre-empt or supersede the authority of local agencies to prohibit, restrict, or control discharges of stormwater to storm drain systems or other water courses within their jurisdiction. 6. Inactivation Notice When a site has been finally stabilized in accordance with the SWMP, the permittee must submit an Inactivation Notice form that is signed in accordance with Part 1.F.1. of this permit. The Inactivation Notice form is available from the Division and includes: a) Permit certification number; b) The permittee's name, address, telephone number; c) Name, location, and county for the construction site for which the inactivation notice is being submitted; and d) Certification that the site has been finally stabilized, and a description of the final stabilization method(s). 7. Transfer of Permit When responsibility for stormwater discharges at a construction site changes from one entity to another, the permittee shall submit a completed Notice of Transfer and Acceptance of Terms form that is signed in accordance with Part I.F.1. of this permit. The Notice of Transfer form is available from the Division and includes: a) Permit certification number; b) Name, location, and county for the construction site for which the Notice of Transfer is being submitted; c) Identifying information for the new permittee; d) Identifying information for the current permittee; and e) Effective date of transfer. If the new responsible party will not complete the transfer form, the permit may be inactivated upon written request to the Division and completion of the Inactivation Notice if the permittee has no legal responsibility, through ownership or contract, for the construction activities at the site. In this case, the new owner or operator would be required to obtain permit coverage separately. 8. Reassignment of Permit When a permittee no longer has control of a specific portion of a permitted site, and wishes to transfer coverage of that portion of the site to a second party, the permittee shall submit a completed Notice of Reassignment of Permit Coverage form that is signed in accordance with Part 1.F.1. of this permit. The Notice of Reassignment of Permit Coverage form is available from the Division and includes: a) Current permit certification number; b) Identifying information and certification as required by Part I.A.4.b for the new permittee; c) Identifying information for the current permittee, revised site information and certification for reassignment; and d) Effective date of reassignment. PART I Permit - Page 6 Permit No. COR -030000 A. COVERAGE UNDER THIS PERMIT (cont.) If the new responsible party will not complete the reassignment form.. the applicable portion of the permitted site may be removed from permit coverage upon written request to the Division if the permittee has no legal responsibility, through ownership or contract, for the construction activities at the portion of the site. In this case, the new owner or operator would be required to obtain permit coverage separately. 9. Sale of Residence to Homeowners For residential construction only, when a residential lot has been conveyed to a homeowner and all criteria in paragraphs a through e, below, are met, coverage under this permit is no longer required and the conveyed lot may be removed from coverage under the permittee's certification. At such time, the permittee is no longer responsible for meeting the terms and conditions of this permit for the conveyed lot, including the requirement to transfer or reassign permit coverage. The permittee remains responsible for inactivation of the original certification. a) The lot has been sold to the homeowner(s) for private residential use; b) the lot is less than one acre of disturbed area; c) all construction activity conducted by the permittee on the lot is completed; d) a certificate of occupancy (or equivalent) has been awarded to the home owner; and e) the SWMP has been amended to indicate the lot is no longer covered by permit. Lots not meeting all of the above criteria require continued permit coverage. However, this permit coverage may be transferred (Part 1.A.7, above) or reassigned (Part I.A.8, above) to a new owner or operator. 10. Permit Expiration Date Authorization to discharge under this general permit shall expire on June 30, 2012. The Division must evaluate and reissue this general permit at least once every five years and must recertify the permittee's authority to discharge under the general permit at such time. Therefore, a permittee desiring continued coverage under the general permit must reapply by March 31, 2012. The Division will initiate the renewal process; however, it is ultimately the permittee's responsibility to ensure that the renewal is submitted. The Division will determine if the permittee may continue to operate under the terms of the general permit. An individual permit may be required for any facility not reauthorized to discharge under the reissued general permit. 11. Individual Permit Criteria Various criteria can be used in evaluating whether or not an individual (or alternate general) permit is required instead of this general permit. This information may come from the application, SWMP, or additional information as requested by the Division, and includes, but is not limited to, the following: a) the quality of the receiving waters (i.e., the presence of downstream drinking water intakes or a high quality fishery, or for preservation of high quality water); b) the size of the construction site; c) evidence of noncompliance under a previous permit for the operation; d) the use of chemicals within the stormwater system; or e) discharges of pollutants of concern to waters for which there is an established Total Maximum Daily Load (TMDL). In addition, an individual permit may be required when the Division has shown or has reason to suspect that the stormwater discharge may contribute to a violation of a water quality standard. B. STORMWATER MANAGEMENT PLAN (SWMP) — GENERAL REQUIREMENTS 1. A SWMP shall be developed for each facility covered by this permit. The SWMP shall be prepared in accordance with good engineering, hydrologic and pollution control practices. (The SWMP need not be prepared by a registered engineer.) PART I Permit - Page 7 Permit No. COR -030000 B. STORMWATER MANAGEMENT PLAN (SWMP) — GENERAL REQUIREMENTS (cont.) 2. The SWMP shall: a) Identify all potential sources of pollution which may reasonably be expected to affect the quality of stormwater discharges associated with construction activity from the facility; b) Describe the practices to be used to reduce the pollutants in stormwater discharges associated with construction activity at the facility; and ensure the practices are selected and described in accordance with good engineering practices, including the installation, implementation and maintenance requirements; and c) Be properly prepared, and updated in accordance with Part I.D.5.c, to ensure compliance with the terms and conditions of this permit. 3. Facilities must implement the provisions of the SWMP as written and updated, from commencement of construction activity until fmal stabilization is complete, as a condition of this permit. The Division reserves the right to review the SWMP, and to require the permittee to develop and implement additional measures to prevent and control pollution as needed. 4. The SWMP may reflect requirements for Spill Prevention Control and Countermeasure (SPCC) plans under section 311 of the CWA, or Best Management Practices (BMPs) Programs otherwise required by a separate CDPS permit, and may incorporate any part of such plans into the SWMP by reference, provided that the relevant sections of such plans are available as part of the SWMP consistent with Part I.D.5.b. 5. For any sites with permit coverage before June 30, 2007, the permittee's SMWP must meet the new SWMP requirements as summarized in Section II.I of the rationale. Any needed changes must be made by October 1, 2007. C. STORMWATER MANAGEMENT PLAN (SWMP) — CONTENTS The SWMP shall include the following items, at a minimum 1. Site Description. The SWMP shall clearly describe the construction activity, to include: . a) The nature of the construction activity at the site. b) The proposed sequence for major activities. c) Estimates of the total area of the site, and the area and location expected to be disturbed by clearing, excavation, grading, or other construction activities. d) A summary of any existing data used in the development 01 the site construction plans or SWMP that describe the soil or existing potential for soil erosion. e) A description of the existing vegetation at the site and an estimate of the percent vegetative ground cover. f) The location and description of all potential pollution sources, including ground surface disturbing activities (see Part I.A.2.b), vehicle fueling, storage of fertilizers or chemicals, etc. g) The location and description of any anticipated allowable sources of non-stormwater discharge at the site, e.g., uncontaminated springs, landscape irrigation return flow, construction dewatering, and concrete washout. h) The name of the receiving water(s) and the size, type and location of any outfall(s). If the stormwater discharge is to a municipal separate storm sewer system, the name of that system, the location of the storm sewer discharge, and the ultimate receiving water(s). 2. Site Map. The SWMP shall include a legible site map(s), showing the entire site, identifying: a) construction site boundaries; b) all areas of ground surface disturbance; c) areas of cut and fill; d) areas used for storage of building materials, equipment, soil, or waste; e) locations of dedicated asphalt or concrete batch plants; 1) locations of all structural BMPs; g) locations of non-structural BMPs as applicable; and h) locations of springs, streams, wetlands and other surface waters. PART I Permit - Page 8 Permit No. COR -030000 C. STORMWATER MANAGEMENT PLAN (SWMP) — CONTENTS (cont.) 3. Stormwater Manasement Controls. The SWMP must include a description of all stormwater management controls that will be implemented as part of the construction activity to control pollutants in stormwater discharges. The appropriateness and priorities of stormwater management controls in the SWMP shall reflect the potential pollutant sources identified at the facility. The description of stormwater management controls shall address the following components, at a minimum: a) SWMP Administrator - The SWMP shall identify a specific individual(s), position or title who is responsible for developing, implementing, maintaining, and revising the SWMP. The activities and responsibilities of the administrator shall address all aspects of the facility's SWMP. b) Identification of Potential Pollutant Sources - All potential pollutant sources, including materials and activities, at a site must be evaluated for the potential to contribute pollutants to stormwater discharges. The SWMP shall identify and describe those sources determined to have the potential to contribute pollutants to stormwater discharges, and the sources must be controlled through BMP selection and implementation, as required in paragraph (c), below. At a minimum, each of the following sources and activities shall be evaluated for the potential to contribute pollutants to stormwater discharges, and identified in the SWMP if found to have such potential: 1) all disturbed and stored soils; 2) vehicle tracking of sediments; 3) management of contaminated soils; 4) loading and unloading operations; 5) outdoor storage activities (building materials, fertilizers, chemicals, etc.); 6) vehicle and equipment maintenance and fueling; 7) significant dust or particulate generating processes; 8) routine maintenance activities involving fertilizers, pesticides, detergents, fuels, solvents, oils, etc.; 9) on-site waste management practices (waste piles, liquid wastes, dumpsters, etc.); 10) concrete truck/equipment washing, including the concrete truck chute and associated fixtures and equipment; 11) dedicated asphalt and concrete batch plants; 12) non -industrial waste sources such as worker trash and portable toilets; and 13) other areas or procedures where potential spills can occur. c) Best Management Practices (BMPs) for Stormwater Pollution Prevention - The SWMP shall identify and describe appropriate BMPs, including, but not limited to, those required by paragraphs 1 through 8 below, that will be implemented at the facility to reduce the potential of the sources identified in Part I.C.3.b to contribute pollutants to stormwater discharges. The SWMP shall clearly describe the installation and implementation specifications for each BMP identified in the SWMP to ensure proper implementation, operation and maintenance of the BMP. 1) Structural Practices for Erosion and Sediment Control. The SWMP shall clearly describe and locate all structural practices implemented at the site to minimize erosion and sediment transport. Practices may include, but are not limited to: straw bales, wattles/sediment control logs, silt fences, earth dikes, drainage swales, sediment traps, subsurface drains, pipe slope drains, inlet protection, outlet protection, gabions, and temporary or permanent sediment basins. 2) Non -Structural Practices for Erosion and Sediment Control. The SWMP shall clearly describe and locate, as applicable, all non-structural practices implemented at the site to minimize erosion and sediment transport. Description must include interim and permanent stabilization practices, and site-specific scheduling for implementation of the practices. The SWMP should include practices to ensure that existing vegetation is preserved where possible. Non-structural practices may include, but are not limited to: temporary vegetation, permanent vegetation, mulching, geotextiles, sod stabilization, slope roughening, vegetative buffer strips. protection of trees, and preservation of mature vegetation. PART I Permit - Page 9 Permit No. COR -030000 C. STORMWATER MANAGEMENT PLAN (SWMP) — CONTENTS (cont.) 3) Phased BMP Implementation. The SWMP shall clearly describe the relationship between the phases of construction, and the implementation and maintenance of both structural and non-structural stormwater management controls. The SWMP must identify the stormwater management controls to be implemented during the project phases, which can include, but are not limited to, clearing and grubbing; road construction; utility and infrastructure installation; vertical construction; final grading; and final stabilization. 4) Materials Handling and Spill Prevention. The SWMP shall clearly describe and locate all practices implemented at the site to minimize impacts from procedures or significant materials (see definitions at Part LE.) that could contribute pollutants to runoff. Such procedures or significant materials could include: exposed storage of building materials; paints and solvents; fertilizers or chemicals; waste material; and equipment maintenance or fueling procedures. Areas or procedures where potential spills can occur must have spill prevention and response procedures identified in the SWMP. 5) Dedicated Concrete or Asphalt Batch Plants. The SWMP shall clearly describe and locate all practices implemented at the site to control stormwater pollution from dedicated concrete batch plants or dedicated asphalt batch plants covered by this certification. 6) Vehicle Tracking Control. The SWMP shall clearly describe and locate all practices implemented at the site to control potential sediment discharges from vehicle tracking. Practices must be implemented for all areas of potential vehicle tracking, and can include: minimizing site access; street sweeping or scraping; tracking pads; graveled parking areas; requiring that vehicles stay on paved areas on-site; wash racks; contractor education; and/or sediment control BMPs, etc. 7) Waste Management and Disposal, Including Concrete Washout. i) The SWMP shall clearly describe and locate the practices implemented at the site to control stormwater pollution from all construction site wastes (liquid and solid), including concrete washout activities. ii) The practices used for concrete washout must ensure that these activities do not result in the contribution of pollutants associated with the washing activity to stormwater runoff. iii) Part I.D.3.c of the permit authorizes the conditional discharge of concrete washout water to the ground. The SWMP shall clearly describe and locate the practices to be used that will ensure that no washout water from concrete washout activities is discharged from the site as surface runoff or to surface waters. 8) Groundwater and Stormwater Dewatering. i) The SWMP shall clearly describe and locate the practices implemented at the site to control stormwater pollution from the dewatering of groundwater or stormwater from excavations, wells, etc. ii) Part I.D.3.d of the permit authorizes the conditional discharge of construction dewatering to the ground. For any construction dewatering of groundwater not authorized under a separate CDPS discharge permit, the SWMP shall clearly describe and locate the practices to be used that will ensure that no groundwater from construction dewatering is discharged from the site as surface runoff or to surface waters. 4. Final Stabilization and Long-term Stormwater Management a) The SWMP shall clearly describe the practices used to achieve final stabilization of all disturbed areas at the site, and any planned practices to control pollutants in stormwater discharges that will occur after construction operations have been completed at the site. b) Final stabilization practices for obtaining a vegetative cover should include, as appropriate: seed mix selection and application methods; soil preparation and amendments; soil stabilization practices (e.g., crimped straw, hydro mulch or rolled erosion control products); and appropriate sediment control BMPs as needed until final stabilization is achieved; etc. PART I Permit - Page 10 Permit No. COR -030000 C. STORMWATER MANAGEMENT PLAN (SWMP) — CONTENTS (cont.) c) Final stabilization is reached when all ground surface disturbing activities at the site have been completed, and uniform vegetative cover has been established with an individual plant density of at least 70 percent of pre - disturbance levels, or equivalent permanent, physical erosion reduction methods have been employed. The Division may, after consultation with the permittee and upon good cause, amend the final stabilization criteria in this section for specific operations. 5. Inspection and Maintenance Part I.D.6 of the permit includes requirements for site inspections. Part I.D.7 of the permit includes requirements for BMP maintenance. The SWMP shall clearly describe the inspection and maintenance procedures implemented at the site to maintain all erosion and sediment control practices and other protective practices identified in the SWMP, in good and effective operating condition. D. TERMS AND CONDITIONS 1. General Limitations The following limitations shall apply to all discharges covered by this permit: a) Stormwater discharges from construction activities shall not cause, have the reasonable potential to cause, or measurably contribute to an exceedance of any water quality standard, including narrative standards for water quality. b) Concrete washout water shall not be discharged to state surface waters or to storm sewer systems. On-site permanent disposal of concrete washout waste is not authorized by this permit. Discharge to the ground of concrete washout waste that will subsequently be disposed of off-site is authorized by this permit. See Part I.D.3.c of the permit. c) Bulk storage structures for petroleum products and any other chemicals shall have secondary containment or equivalent adequate protection so as to contain all spills and prevent any spilled material from entering State waters. d) No chemicals are to be added to the discharge unless permission for the use of a specific chemical is granted by the Division. In granting the use of such chemicals, special c,4itions and monitoring may be addressed by separate correspondence. e) The Division reserves the right to require sampling and testing, on a case-by-case basis, in the event that there is reason to suspect that compliance with the SWMP is a problem, or to measure the effectiveness of the BMPs in removing pollutants in the effluent. Such monitoring may include Whole Effluent Toxicity testing. f) All site wastes must be properly managed to prevent potential pollution of State waters. This permit does not authorize on-site waste disposal. g) All dischargers must comply with the lawful requirements of federal agencies, municipalities, counties, drainage districts and other local agencies regarding any discharges of stonnwater to storm drain systems or other water courses under their jurisdiction, including applicable requirements in municipal stormwater management programs developed to comply with CDPS permits. Dischargers must comply with local stormwater management requirements, policies or guidelines including erosion and sediment control. BMP Implementation and Design Standards Facilities must select, install, implement, and maintain appropriate BMPs, following good engineering, hydrologic and pollution control practices. BMPs implemented at the site must be adequately designed to provide control for all potential pollutant sources associated with construction activity to prevent pollution or degradation of State waters. PART Permit - Page 11 Permit No. COR -030000 D. TERMS AND CONDITIONS (cont.) 3. Prohibition of Non-Stormwater Discharges a) Except as provided in paragraphs b, c. and d below, all discharges covered by this permit shall be composed entirely of stormwater associated with construction activity. Discharges of material other than stormwater must be addressed in a separate CDPS permit issued for that discharge. b) Discharges from the following sources that are combined with stormwater discharges associated with construction activity may be authorized by this permit, provided that the non-stormwater component of the discharge is identified in the SWMP (see Part 1.C.1.g of this permit): - emergency fire fighting activities - landscape irrigation return flow - uncontaminated springs c) Discharges to the ground of concrete washout water from washing of tools and concrete mixer chutes may be authorized by this permit, provided that: 1) the source is identified in the SWMP; 2) BMPs are included in the SWMP in accordance with Part I.C.3(c)(7) and to prevent pollution of groundwater in violation of Part I_D.I .a; and 3) these discharges do not leave the site as surface runoff or to surface waters d) Discharges to the ground of water from construction dewatering activities may be authorized by this permit, provided that: 1) the source is groundwater and/or groundwater combined with stormwater that does not contain pollutants in concentrations exceeding the State groundwater standards in Regulations 5 CCR 1002-41 and 42; 2) the source is identified in the SWMP; 3) BMPs are included in the SWMP, as required by Part I.C.3(c)(8); and 4) these discharges do not leave the site as surface runoff or to surface waters. Discharges to the ground from construction dewatering activities that do not meet the above criteria must be covered under a separate CDPS discharge permit. Contaminated groundwater requiring coverage under a separate CDPS discharge permit may include groundwater contaminated with pollutants from a landfill, mining activity, industrial pollutant plume, underground storage tank, or other source. 4. Releases in Excess of Reportable Quantities This permit does not relieve the permittee of the reporting requirements of 40 CFR 110, 40 CFR 117 or 40 CFR 302. Any discharge of hazardous material must be handled in accordance with the Division's Noncompliance Notification Requirements (see Part II.A.3 of the permit). 5. SWMP Requirements a) SWNW Preparation and Implementation: The SWMP shall be prepared prior to applying for coverage under the general permit, and certification of its completion submitted with the application. The SWMP shall be implemented prior to commencement of construction activities. The plan shall be updated as appropriate (see paragraph c, below), below). SWMP provisions shall be implemented until expiration or inactivation of permit coverage. b) SWMP Retention Requirements: A copy of the SWMP must be retained on site unless another location, specified by the permittee, is approved by the Division. c) SWMP Review/Changes: The permittee shall amend the SWMP: 1) when there is a change in design, construction, operation, or maintenance of the site, which would require the implementation of new or revised BMPs; or 2) if the SWMP proves to be ineffective in achieving the general objectives of controlling pollutants in stormwater discharges associated with construction activity; or PART I Permit - Page 12 Permit No. COR -030000 D. TERMS AND CONDITIONS (cont.) 3) when BMPs are no longer necessary and are removed. SWMP changes shall be made prior to changes in the site conditions, except as allowed for in paragraph d, below. SWMP revisions may include, but are not limited to: potential pollutant source identification; selection of appropriate BMPs for site conditions; BMP maintenance procedures; and interim and final stabilization practices. The SWMP changes may include a schedule for further BMP design and implementation, provided that, if any interim BMPs are needed to comply with the permit, they are also included in the SWMP and implemented during the interim period. d) Responsive SWMP Changes: SWMP changes addressing BMP installation and/or implementation are often required to be made in response to changing conditions. or when current BMPs are determined ineffective. The majority of SWMP revisions to address these changes can be made immediately with quick in -the -field revisions to the SWMP. In the less common scenario where more complex development of materials to modify the SWMP is necessary, SWMP revisions shall be made in accordance with the following requirements: 1) the SWMP shall be revised as soon as practicable, but in no case more than 72 hours after the change(s) in BMP installation and/or implementation occur at the site, and 2) a notation must be included in the SWMP prior to the site change(s) that includes the time and date of the change(s) in the field, an identification of the BMP(s) removed or added, and the location(s) of those BMP(s). 6. Inspections Site inspections must be conducted in accordance with the following requirements and minimum schedules. The required minimum inspection schedules do not reduce or eliminate the permittee's responsibility to implement and maintain BMPs in good and effective operational condition, and in accordance with the SWMP, which could require more frequent inspections. a) Minimum Inspection Schedule: The permittee shall, at a minimum, make a thorough inspection, in accordance with the requirements in I.D.6.b below, at least once every 14 calendar days. Also, post -storm event inspections must be conducted within 24 hours after the end of any precipitation or snowmelt event that causes surface erosion. Provided the 'fining is appropriate, the post -storm inspections may be used to fulfill the 14 -day routine inspection requirement. A more frequent inspection schedule than the minimum inspections described may be necessary, to ensure that BMPs continue to operate as needed to comply with the permit. The following conditional modifications to this Minimum Inspection Schedule are allowed: 1) Post -Storm Event Inspections at Temporarily Idle Sites — If no construction activities will occur following a storm event, post -storm event inspections shall be conducted prior to re -commencing construction activities, but no later than 72 hours following the storm event. The occurrence of any such delayed inspection must be documented in the inspection record. Routine inspections still must be conducted at least every 14 calendar days. 2) Inspections at Completed Sites/Areas — For sites or portions of sites that meet the following criteria, but final stabilization has not been achieved due to a vegetative cover that has not become established, the permittee shall make a thorough inspection of their stormwater management system at least once every month, and post - storm event inspections are not required. This reduced inspection schedule is only allowed if: i) all construction activities that will result in surface ground disturbance are completed; ii) all activities required for final stabilization.. in accordance with the SWMP, have been completed, with the exception of the application of seed that has not occurred due to seasonal conditions or the necessity for additional seed application to augment previous efforts; and iii) the SWMP has been amended to indicate those areas that will be inspected in accordance with the reduced schedule allowed for in this paragraph. PART I Permit - Page 13 Permit No. COR -030000 D. TERMS AND CONDITIONS (cont.) 3) Winter Conditions Inspections Exclusion — Inspections are not required at sites where construction activities are temporarily halted, snow cover exists over the entire site for an extended period, and melting conditions posing a risk of surface erosion do not exist. This exception is applicable only during the period where melting conditions do not exist, and applies to the routine 14 -day and monthly inspections, as well as the post -storm - event inspections. The following information must be documented in the inspection record for use of this exclusion: dates when snow cover occurred, date when construction activities ceased, and date melting conditions began. Inspections, as described above, are required at all other times. When site conditions make the schedule required in this section impractical, the permittee may petition the Division to grant an alternate inspection schedule. b) Inspection Requirements 1) Inspection Scope - The construction site perimeter, all disturbed areas, material and/or waste storage areas that are exposed to precipitation, discharge locations, and locations where vehicles access the site shall be inspected for evidence of, or the potential for, pollutants leaving the construction site boundaries, entering the stormwater drainage system, or discharging to state waters. All erosion and sediment control practices identified in the SWMP shall be evaluated to ensure that they are maintained and operating correctly. 2) Inspection Report/Records - The permittee shall keep a record of inspections. Inspection reports must identify any incidents of non-compliance with the terms and conditions of this permit. Inspection records must be retained for three years from expiration or inactivation of permit coverage. At a minimum, the inspection report must include: i) The inspection date; ii) Name(s) and title(s) of personnel making the inspection; iii) Location(s) of discharges of sediment or other pollutants from the site; iv) Location(s) of BMPs that need to be maintained; v) Location(s) of BMPs that failed to operate as designed or proved inadequate for a particular location; vi) Location(s) where additional BMPs are needed that were not in place at the time of inspection; vii) Deviations from the minimum inspection schedule as provided in Part I.D.6.a above; vii) Description of corrective action for items iii, iv, v, and vi, above, dates corrective action(s) taken, and measures taken to prevent future violations, including requisite changes to the SWMP, as necessary; and viii) After adequate corrective action(s) has been taky:, or where a report does not identify any incidents requiring corrective action, the report shall contain a signed statement indicating the site is in compliance with the permit to the best of the signer's knowledge and belief. c) Required Actions Following Site Inspections — Where site inspections note the need for BMP maintenance activities, BMPs must be maintained in accordance with the SWMP and Part I.D.7 of the permit. Repair, replacement, or installation of new BMPs determined necessary during site inspections to address ineffective or inadequate BMPs must be conducted in accordance with Part I.D.8 of the permit. SWMP updates required as a result of deficiencies in the SWMP noted during site inspections shall be made in accordance with Part I.D.5.c of the permit. 7. BMP Maintenance All erosion and sediment control practices and other protective measures identified in the SWMP must be maintained in effective operating condition. Proper selection and installation of BMPs and implementation of comprehensive Inspection and Maintenance procedures, in accordance with the SWMP, should be adequate to meet this condition. BMPs that are not adequately maintained in accordance with good engineering, hydrologic and pollution control practices, including removal of collected sediment outside the acceptable tolerances of the BMPs, are considered to be no longer operating effectively and must be addressed in accordance with Part I.D.8, below. A specific timeline for implementing maintenance procedures is not included in this permit because BMP maintenance is expected to be proactive, not responsive. Observations resulting in BMP maintenance activities can be made during a site inspection, or during general observations of site conditions. PART I Permit - Page 14 Permit No. COR -030000 D. TERMS AND CONDITIONS (cont.) 8. Replacement and Failed BMPs Adequate site assessment must be performed as part of comprehensive Inspection and Maintenance procedures, to assess the adequacy of BMPs at the site, and the necessity of changes to those BMPs to ensure continued effective performance. Where site assessment results in the determination that new or replacement BMPs are necessary, the BMPs must be installed to ensure on-going implementation of BMPs as per Part I.D.2. Where BMPs have failed, resulting in noncompliance with Part I.D.2, they must be addressed as soon as possible, immediately in most cases, to minimize the discharge of pollutants. When new BMPs are installed or BMPs are replaced, the SWMP must be updated in accordance with Part I.D.5(c). 9. Reporting No scheduled reporting requirements are included in this permit; however, the Division reserves the right to request that a copy of the inspection reports be submitted. 10. SWMP Availability A copy of the SWMP shall be provided upon request to the Division, EPA, or any local agency in charge of approving sediment and erosion plans, grading plans or stormwater management plans, and within the time frame specified in the request. if the SWMP is required to be submitted to any of these entities, it must include a signed certification in accordance with Part I.F.1 of the permit, certifying that the SWMP is complete and meets all permit requirements. All SWMPs required under this permit are considered reports that shall be available to the public under Section 308(b) of the CWA and Section 61.5(4) of the Colorado Discharge Permit System Regulations. The permittee shall make plans available to members of the public upon request. However, the permittee may claim any portion of a SWMP as confidential in accordance with 40 CFR Part 2. 11. Total Maximum Daily Load (TMDL) If a TMDL has been approved for any waterbody into which the permittee discharges, and stonnwater discharges associated with construction activity have been assigned a pollutant -specific Wasteload Allocation (WLA) under the TMDL, the Division will either: a) Ensure that the WLA is being implemented properly through alternative local requirements, such as by a municipal stormwater permit; or b) Notify the permittee of the WLA, and amend the pertnittee's certification to add specific BMPs and/or other requirements, as appropriate. The permittee may be required to do the following: I) Under the permittee's SWMP, implement specific management practices based on requirements of the WLA, and evaluate whether the requirements are being met through implementation of existing stormwater BMPs or if additional BIvIPs are necessary. Document the calculations or other evidence that show that the requirements are expected to be met; and 2) If the evaluation shows that additional or modified BMPs are necessary, describe the type and schedule for the BMP additions/revisions. Discharge monitoring may also be required. The permittee may maintain coverage under the general permit provided they comply with the applicable requirements outlined above. The Division reserves the right to require individual or alternate general permit coverage. PART 1 Permit - Page 15 Permit No. COR -030000 E. ADDITIONAL DEFINITIONS For the purposes of this permit: 1. Best Management Practices (BMPs): schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to prevent or reduce the pollution of waters of the State. BIvfPs also include treatment requirements, operating procedures, pollution prevention, and practices to control site runoff, spillage or leaks, waste disposal, or drainage from material storage. 2. Dedicated asphalt plants and concrete plants: portable asphalt plants and concrete plants that are located on or adjacent to a construction site and that provide materials only to that specific construction site. 3. Final stabilization: when all ground surface disturbing activities at the site have been completed, and uniform vegetative cover has been established with an individual plant density of at least 70 percent of pre -disturbance levels, or equivalent permanent, physical erosion reduction methods have been employed. For purposes of this permit, establishment of a vegetative cover capable of providing erosion control equivalent to pre-existing conditions at the site will be considered final stabilization. 4. Municipal separate storm sewer system: a conveyance or system of conveyances (including: roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains), owned or operated by a State, city, town, county, district, or other public body (created by state law), having jurisdiction over disposal of sewage, industrial waste, stormwater, or other wastes; designed or used for collecting or conveying stonnwater. 5. Operator: the entity that has day-to-day supervision and control of activities occurring at the construction site. This can be the owner, the developer, the general contractor or the agent of one of these parties, in some circumstances. It is anticipated that at different phases of a construction project, different types of parties may satisfy the definition of 'operator' and that the permit may be transferred as the roles change. 6. Outfall: a point source at the point where stormwater leaves the construction site and discharges to a receiving water or a stormwater collection system. 7. Part of a larger common plan of development or sale: a contiguous area where multiple separate and distinct construction activities may be taking place at different times on different schedules. 8. Point source: any discernible, confined and discrete conveyance from which pollutants are or may be discharged. Point source discharges of stormwater result from structures which increase the imperviousness of the ground which acts to collect runoff, with runoff being conveyed along the resulting drainage or grading pattern. 9. Pollutant: dredged spoil, dirt, slurry, solid waste, incinerator residue, sewage, sewage sludge, garbage, trash, chemical waste, biological nutrient, biological material, radioactive material, heat, wrecked or discarded equipment, rock, sand, or any industrial, municipal or agricultural waste. 10. Process water: any water which, during manufacturing or processing, comes into contact with or results from the production of any raw material, intermediate product, finished product, by product or waste product. This definition includes mine drainage. 11. Receiving Water: any classified stream segment (including tributaries) in the State of Colorado into which stormwater related to construction activities discharges. This definition includes all water courses, even if they are usually dry, such as borrow ditches, arroyos, and other unnamed waterways. 12. Significant Materials include, but are not limited to: raw materials; fuels; materials such as solvents, detergents, and plastic pellets; finished materials such as metallic products; raw materials used in food processing or production; hazardous substances designated under section 101(14) of CERCLA; any chemical the facility is required to report pursuant to section 313 of title III of SARA; fertilizers; pesticides; and waste products such as ashes, slag and sludge that have the potential to be released with stormwater discharge. 13. Stormwater: precipitation -induced surface runoff. PART I Permit - Page 16 Permit No. COR -030000 F. GENERAL REQUIREMENTS 1. Signatory Requirements a) All reports required for submittal shall be signed and certified for accuracy by the permittee in accordance with the following criteria: 1) hi the case of corporations, by a principal executive officer of at least the level of vice-president or his or her duly authorized representative, if such representative is responsible for the overall operation of the facility from which the discharge described in the form originates; 2) In the case of a partnership, by a general partner; 3) In the case of a sole proprietorship, by the proprietor; 4) In the case of a municipal, state, or other public facility, by either a principal executive officer, ranking elected official, or other duly authorized employee, if such representative is responsible for the overall operation of the facility from which the discharge described in the form originates. b) Changes to authorization. If an authorization under paragraph a) of this section is no longer accurate because a different individual or position has responsibility for the overall operation of the facility, a new authorization satisfying the requirements of paragraph a) of this section must be submitted to the Division, prior to or together with any reports, information, or applications to be signed by an authorized representative. c) Certification. Any person signing a document under paragraph a) of this section shall make the following certification: "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations." 2. Retention of Records a) The permittee shall retain copies of the SWMP and all reports required by this pei mit and records of all data used to complete the application to be covered by this permit, for three years after expiration or inactivation of permit coverage. b) The permittee shall retain a copy of the SWMP required by this permit at the construction site from the date of project initiation to the date of expiration or inactivation of permit coverage, unless another location, specified by the permittee, is approved by the Division. 3. Monitoring The Division reserves the right to require sampling and testing, on a case-by-case basis (see Part I.D.I.e), for example to implement the provisions of a TMDL (see Part I.D.11 of the permit). Reporting procedures for any monitoring data collected will be included in the notification by the Division of monitoring requirements. If monitoring is required, the following definitions apply: a) The thirty (30) day average shall be determined by the arithmetic mean of all samples collected during a thirty (30) consecutive -day period. b) A grab sample, for monitoring requirements, is a single "dip and take" sample. PART II A. MANAGEMENT REQUIREMENTS 1. Amending a Permit Certification The pennittee shall infonn the Division (Permits Section) in writing of changes to the information provided in the permit application, including the legal contact, the project legal description or map originally submitted with the application, or the planned total disturbed acreage. The permittee shall furnish the Division with any plans and specifications which the Division deems reasonably necessary to evaluate the effect on the discharge and receiving stream. If applicable, this notification may be accomplished through submittal of an application for a CDPS process water permit authorizing the discharge. The SWMP shall be updated and implemented prior to the changes (see Part I.D.5.c). Any discharge to the waters of the State from a point source other than specifically authorized by this permit or a different CDPS permit is prohibited. 2. Special Notifications - Definitions a) Spill: An unintentional release of solid or liquid material which may cause pollution of state waters. b) Upset: An exceptional incident in which there is unintentional and temporary noncompliance with permit discharge limitations because of factors beyond the reasonable control of the permittee. An upset does not include noncompliance to the extent caused by operational error, improperly designed treamient facilities, inadequate treatment facilities, lack of preventative maintenance, or careless or improper operation. 3. Noncompliance Notification a) The permittee shall report the following instances of noncompliance: 1) Any noncompliance which may endanger health or the environment; 2) Any spill or discharge of hazardous substances or oil which may cause pollution of the waters of the state. 3) Any discharge of stormwater which may cause an exceedance of a water quality standard. b) For all instances of noncompliance based on environmental hazards and chemical spills and releases, all needed information must be provided orally to the Colorado Department of Public Health and Environment spill reporting line (24-hour number for environmental hazards and chemical spills and releases: 1-877-518-5608) within 24 hours from the time the permittee becomes aware of the circumstances. For all other instances of noncompliance as defined in this section, all needed information must be provided orally to the Water Quality Control Division within 24 hours from the time the permittee becomes aware of the circumstances. For all instances of noncompliance identified here, a written submission shall also be provided within 5 calendar days of the time the permittee becomes aware of the circumstances. The written submission shall contain a description of: 1) The noncompliance and its cause; 2) The period of noncompliance, including exact dates and times. and if the noncompliance has not been corrected, the anticipated time it is expected to continue; 3) Steps taken or planned to reduce, eliminate, and prevent reoccurrence of the noncompliance. A. MANAGEMENT REQUIREMENTS (cont.) 4. Submission of Incorrect or Incomplete Information Where the permittee failed to submit any relevant facts in a permit application, or submitted incorrect information in a permit application or report to the Division, or relevant new information becomes available, the permittee shall promptly submit the relevant application information which was not submitted or any additional information needed to correct any erroneous information previously submitted. 5. Bypass a) A bypass, which causes effluent Iimitations (i.e., requirements to implement BMPs in accordance with Parts I.B.3 and I.D.2 of the permit) to be exceeded is prohibited, and the Division may take enforcement action against a permittee for such a bypass, unless: 1) Bypass was unavoidable to prevent loss of life, personal injury, or severe property damage; 2) There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities (e.g., alternative BMPs), retention of untreated wastes, or maintenance during normal periods of equipment downtime. This condition is not satisfied if the permittee could have installed adequate backup equipment (e.g., implemented additional BMPs) to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3) The permittee submitted notices as required in "Non -Compliance Notification," Part II.A.3. 6. Upsets a) Effect of an Upset: An upset constitutes an affirmative defense to an action brought for noncompliance with permit limitations and requirements if the requirements of paragraph b of this section are met. (No determination made during administrative review of claims that noncompliance was caused by upset, and before an action for noncompliance, is final administrative action subject to judicial review.) b) Conditions Necessary for a Demonstration of Upset: A permittee who wishes to establish the affirmative defense of upset shall demonstrate through properly signed contemporaneous operating logs, or other relevant evidence that: 1) An upset occurred and that the permittee can identify the specific cause(s) of the upset; 2) The permitted facility was at the time being properly operated; 3) The permittee submitted notice of the upset as required in Part II.A.3. of this permit (24-hour notice); and 4) The permittee complied with any remedial measures required under 40 CFR Section 122.41(d) of the federal regulations or Section 61.8(3)(h) of the Colorado Discharge Permit System Regulations. c) Burden of Proof: In any enforcement proceeding the permittee seeking to establish the occurrence of an upset has the burden of proof. 7. Removed Substances Solids, sludges, or other pollutants removed in the course of treatment or control of discharges shall be properly disposed of in a manner such as to prevent any pollutant from such materials from entering waters of the State. 8. Minimization of Adverse Impact The permittee shall take all reasonable steps to minimize any adverse impact to waters of the State resulting from noncompliance with any terms and conditions specified in this permit, including such accelerated or additional monitoring as necessary to determine the nature and impact of the noncomplying discharge. A. MANAGEMENT REQUIREMENTS (cont.) 9. Reduction, Loss, or Failure of Stormwater Controls The permittee has the duty to halt or reduce any activity if necessary to maintain compliance with the permit requirements. Upon reduction, loss, or failure of any stormwater controls, the permittee shall, to the extent necessary to maintain compliance with its permit, control production, or remove all pollutant sources from exposure to stormwater, or both, until the stormwater controls are restored or an alternative method of treatmenticontrol is provided. It shall not be a defense for a permittee in an enforcement action that it would be necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit. 10. Proper Operation and Maintenance The permittee shall at all times properly operate and maintain all facilities and systems of treatment and control (and related appurtenances) which are installed or used by the permittee to achieve compliance with the conditions of this permit. Proper operation and maintenance includes effective performance, adequate funding, adequate operator staffing and training, and adequate laboratory and process controls, including appropriate quality assurance procedures. This provision requires the operation of back-up or auxiliary facilities or similar systems only when necessary to achieve compliance with the conditions of the permit. B. RESPONSIBILITIES 1. Inspections and Right to Entry The permittee shall allow the Director of the State Water Quality Control Division, the EPA Regional Administrator, and/or their authorized representative(s), upon the presentation of credentials: a) To enter upon the permittee's premises where a regulated facility or activity is located or in which any records are required to be kept under the terms and conditions of this permit; b) At reasonable times to have access to and copy any records required to be kept under the terms and conditions of this permit and to inspect any monitoring equipment or monitoring method required in the permit; and c) To enter upon the permittee's premises to investigate, within reason, any actual, suspected, or potential source of water pollution, or any violation of the Colorado Water Quality Control Act. The investigation may include, but is not limited to, the following: sampling of any discharge and/or process waters, the taking of photographs, interviewing permittee staff on alleged violations and other matters related to the permit, and access to any and all facilities or areas within the permittee's premises that may have any effect on the discharge, permit, or any alleged violation. 2. Duty to Provide Information The permittee shall furnish to the Division, within the time frame specified by the Division, any information which the Division may request to determine whether cause exists for modifying, revoking and reissuing, or inactivating coverage under this permit, or to determine compliance with this permit. The permittee shall also furnish to the Division, upon request, copies of records required to be kept by this permit. 3. Transfer of Ownership or Control Certification under this permit may be transferred to a new permittee if: a) The current permittee notifies the Division in writing when the transfer is desired as outlined in Pan I.A.7; and b) The notice includes a written agreement between the existing and new permittees containing a specific date for transfer of permit responsibility, coverage and liability between them; and The current permittee has met all fee requirements of the Colorado Discharge Permit System Regulations, Section 61.15. B. RESPONSIBILITIES (cont.) 4. Modification, Suspension, or Revocation of Permit By Division All permit modification, inactivation or revocation and reissuance actions shall be subject to the requirements of the Colorado Discharge Permit System Regulations, Sections 61.5(2), 61.5(3), 61.7 and 61.15, 5 C.C.R. 1002-61, except for minor modifications. a) This permit, and/or certification under this permit, may be modified, suspended, or revoked in whole or in part during its term for reasons determined by the Division including, but not limited to, the following: I) Violation of any terms or conditions of the permit; 2) Obtaining a permit by misrepresentation or failing to disclose any fact which is material to the granting or denial of a permit or to the establishment of terms or conditions of the permit; 3) Materially false or inaccurate statements or information in the application for the permit; 4) Promulgation of toxic effluent standards or prohibitions (including any schedule of compliance specified in such effluent standard or prohibition) which are established under Section 307 of the Clean Water Act, where such a toxic pollutant is present in the discharge and such standard or prohibition is more stringent than any limitation for such pollutant in this permit. b) This permit, and/or certification under this permit, may be modified in whole or in part due to a change in any condition that requires either a temporary or permanent reduction or elimination of the permitted discharge, such as: 1) Promulgation of Water Quality Standards applicable to waters affected by the permitted discharge; or 2) Effluent limitations or other requirements applicable pursuant to the State Act or federal requirements; or 3) Control regulations promulgated; or 4) Other available information indicates a potential for violation of adopted Water Quality Standards or stream classifications. This permit, or certification under this permit, may be modified in whole or in part to include new effluent limitations and other appropriate permit conditions where data submitted pursuant to Part I indicate that such effluent limitations and permit conditions are necessary to dire compliance with applicable water quality standards and protection of classified uses. d) At the request of the permittee, the Division may modify or inactivate certification under this permit if the following conditions are met: I) In the case of inactivation, the permittee notifies the Division of its intent to inactivate the certification, and certifies that the site has been fmally stabilized; 2) In the case of inactivation, the permittee has ceased any and all discharges to state waters and demonstrates to the Division there is no probability of further uncontrolled discharge(s) which may affect waters of the State. 3) The Division finds that the permittee has shown reasonable grounds consistent with the Federal and State statutes and regulations for such modification, amendment or inactivation; 4) Fee requirements of Section 61.15 of the Colorado Discharge Permit System Regulations have been met; and 5) Applicable requirements of public notice have been met. For small construction sites covered by a Qualifying Local Program, coverage under this permit is automatically terminated when a site has been fmally stabilized. B. RESPONSIBILITIES (cont.) 5. Permit Violations Failure to comply with any terms and/or conditions of this permit shall be a violation of this pernut. Dischargers of stormwater associated with industrial activity, as defined in the EPA Stormwater Regulation (40 CFR 122.26(b)(14) and Section 61.3(2) of the Colorado Discharge Permit System Regulations, which do not obtain coverage under this or other Colorado general permits, or under an individual CDPS permit regulating industrial stormwater, will be in violation of the federal Clean Water Act and the Colorado Water Quality Control Act, 25-8-I01, as amended. Failure to comply with CDPS permit requirements will also constitute a violation. 6. Legal Responsibilities The issuance of this permit does not convey any property or water rights in either real or personal property, or stream flows, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of personal rights, nor any infringement of Federal, State or local laws or regulations. Nothing in this permit shall be construed to preclude the institution of any legal action or relieve the permittee from any responsibilities, liabilities, or penalties established pursuant to any applicable State law or regulation under authority granted by Section 510 of the Clean Water Act. 7. Severability The provisions of this permit are severable. If any provisions of this permit, or the application of any provision of this permit to any circumstance, are held invalid, the application of such provision to other circumstances and the application of the remainder of this permit shall not be affected. 8. Renewal Application If the permittee desires to continue to discharge, a permit renewal application shall be submitted at least ninety (90) days before this permit expires. If the permittee anticipates that there will be no discharge after the expiration date of this permit, the Division should be promptly notified so that it can inactivate the certification in accordance with Part ILB.4.d. 9. Confidentiality Except for data determined to be confidential under Section 308 of the Federal Clean Water Act and Colorado Discharge Permit System Regulations, Section 61.5(4), all reports prepared in accordance with the terms of this permit shall be available for public inspection at the offices of the Division. The permittee must state what is confidential at the time of submittal. Any information relating to any secret process, method of manufacture or production, or sales or marketing data which has been declared confidential by the permittee, and which may be acquired, ascertained, or discovered, whether in any sampling investigation, emergency investigation, or otherwise, shall not be publicly disclosed by any member, officer, or employee of the Commission or the Division, but shall be kept confidential. Any person seeking to invoke the protection of this section shall bear the burden of proving its applicability. This section shall never be interpreted as preventing full disclosure of effluent data. 10. Fees The permittee is required to submit payment of an annual fee as set forth in the Water Quality Control Act. Failure to submit the required fee when due and payable is a violation of the permit and will result in enforcement action pursuant to Section 25-8-601 et. seq., C.R.S. 1973 as amended. B. RESPONSIBILITIES (cont.) 1L Requiring an Individual CDPS Permit The Director may require the permittee to apply for and obtain an individual or alternate general CDPS permit if: a) The discharger is not in compliance with the conditions of this general permit; b) Conditions or standards have changed so that the discharge no longer qualifies for a general permit; or c) Data/information become available which indicate water quality standards may be violated. The permittee must be notified in writing that an application for an individual or alternate general CDPS permit is required. When an individual or alternate general CDPS permit is issued to an operator otherwise covered under this general permit, the applicability of this general permit to that operator is automatically inactivated upon the effective date of the individual or alternate general CDPS permit. Water Quality Control Division WQCD-P-B2 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 RATIONALE STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITY GENERAL PERMIT IN COLORADO THIRD RENEWAL COLORADO DISCHARGE PERMIT NUMBER COR -030000 CONTENTS PAGE I. Introduction 1 IL Changes in this General Permit 1 III. Background 8 IV. Stormwater Discharges Associated with Construction Activity 9 V. Coverage Under this Permit 10 VI. Application and Certification 10 VII. Qualifying Local Programs 11 VIII. Terns and Conditions of Permit 11 IX. Public Notice — 12/22/06 15 X Public Notice — 3/23/07 15 L INTRODUCTION This permit is for the regulation ofstormwater runoff from construction activities, and specific allowable non- stormwater discharges in accordance with Part I.D.3 of the permit. The term "construction activity" includes ground surface disturbing activities, including, but not limited to, clearing, grading, excavation, demolition, installation of new or improved haul and access roads, staging areas, stockpiling of fill materials, and bon -ow areas. "Stormwater" is precipitation -induced surface runoff. This rationale will explain the background of the Stormwater program, activities which are covered under this permit, how to apply for coverage under this permit, and the requirements of this permit. 4141 - The forms discussed in the rationale and permit are available on the Water Quality Control Division's website at: www.cdphe.state.co.us/wq/Permitstinit II. CHANGES IN THIS GENERAL PERMIT Several notable changes from the previous General Permit for Construction Activities have been incorporated into this permit. Significant changes are listed below. Numerous other minor changes were made for clarification purposes only. A. Authority to Discharge This section has heen restructured to list all of the types of activities covered by this permit, and to be consistent with the definition of "construction activity." The definition of construction activity has been expanded to provide clarification. See Part I.A.I of the permit. PART II Permit - Page 24 Permit No. COR -030000 II. CHANGES IN THIS GENERAL PERMIT (cont.) B. Authority to Discharge — Oil and Gas Construction This section has been added, to take into account a regulatory change. The federal Energy Policy Act of 2005 exempts nearly all oil and gas construction activities from federal requirements under the Clean Water Act's NPDES stormwater discharge permit program. In January 2006, the Colorado Water Quality Control Commission held a hearing to determine what effects, if any, the change in federal law would have upon Colorado's stormwater regulations. The Commission determined that oil and gas construction sites in Colorado that disturb one or more acres are still required to be covered under Colorado's stormwater permitting regulations (Colorado Discharge Permit System (CDPS) regulations (5CCR 1002-61)). In practice, oil and gas construction sites have the same requirements under this permit as do other types of construction. However, this permit contains some references to the federal Clean Water Act; generally these references are not applicable to oil and gas construction sites to the extent that the references are limited by the federal Energy Policy Act of 2005. See Pan LA.1(b) of the permit. C. Application Requirements The permit application requirements have changed slightly, including the addition of an email address, if available. See Part I.A.4(b). The applicant must be either the owner and/or operator of the construction site. An operator at a construction site that is not covered by a certification held by an appropriate entity may be held liable for operating without the necessary permit coverage. D. Temporary Coverage Part LA.5(d) of the previous permit (effective July 1, 2002) dealt with temporarily covering a facility under the general permit even if an individual permit is more appropriate. This permit section essentially duplicated the previous section (see Part LA.5(c)), and so it has been deleted. E. Reassignment of Permit Coverage - Procedures have been added to clarify the requirements jor the transfer of coverage of specific portions of a permitted site to a second party. See Section VIIL1.3 of the rationale and Part I.A.8 of the permit. F. Individual Permit Criteria This section has been modified to include situations involving a Total Maximum Daily Load (TMDL). See Part L.A.11 of the permit. G. Stormwater Management Plan (SWMP) The Stormwater Management Plan section has been divided into two parts: Stormwater Management Plan (SWMP) — General Requirements, which provides the basic framework and general requirements for the SWMP, and Stormwater Management Plan (SWMP) — Contents, which specifically identifies each item that must be addressed in the SWMP. See Parts I.B and I.0 of the permit. H. Stormwater Management Plan (SWMP) — General Requirements The SWMP General Requirements section has been modified to require that the SWMP be updated in accordance with Parts LD.5(c) and I.D.5(d) of the permit (SWMP Review/Changes). This additional requirement ensures that the SWMP provisions reflect current site conditions. See Part LB.2(c) of the permit. PART II Permit - Page 25 Permit No. COR -030000 1I. CHANGES IN THIS GENERAL PERMIT (cont.) Stormwater Management Plan (SWMP) — Contents The SWMP Contents section has been modified. Some of the changes are limited to organization of information, which does not require modification of an existing permittee 's current SWMP. Most of the SWMP changes involve either clarifications, reformatting, or taking recommendations from the Division's SWMP guide and making them permit requirements (e.g., vehicle tracking controls, BMP installation specifications). If an existing permittee (Le., those with permit coverage before June 30, 2007) followed the recommendations in the SWMP guide (Appendix A of the permit application), then their SWMP will presumably meet the new requirements. However, for any existing permittees who did not follow the applicable SWMP guide recommendations, their SMWP must be amended to include the new required items: -SWMP Administrator - Identification of potential pollutant sources - Best Management Practices descriptions and installation specifications, including dedicated concrete or asphalt batch plants; vehicle tracking control; and waste management and disposal (including concrete washout activities). For existing permittees, any SWMP changes based on the change in permit requirements must be completed by October 1, 2007. The plan is not to be submitted to the Division unless requested, but must be available on site as outlined in Part 1.D.5(b) of the permit. The BMP requirement clarifications included in this renewed permit in no way imply that adequate BMPs to address all pollutant sources at a permitted site were not required in previous permits. The revised requirements are intended only to better clarify SWMP content requirements and provide improved direction to permittees. The SWMP changes are listed below. All new applicants (after June 30, 2007) for permit coverage for their sites must frilly comply with the new SWMP organization, plan requirements, and implementation. 1. Site Description: The requirement to provide an estimate of the run-off coefficient has been removed. The run-off coefficient as currently utilized in the SWMP may not contribute sufficiently to permit compliance to justify the effort in determining accurate values. See Part I. C.1 of the permit. However, the Division still encourages use of the coefficient as needed to adequately evaluate site-specific BMP selection and design criteria (e.g., pond capacities, BMP location, etc.) See Section C.2 of the SWMP guidance (Appendix A of the permit application). 2. Site Map: The requirement to identify boundaries of the 100 year flood plain has been removed. The boundaries as currently utilized in the SWMP may not contribute sufficiently to permit compliance to juste the effort in determining their location. See Part LC.2 of the permit. 3. Stormwater Management Controls: This section has been modified to require identification of a SWMP Administrator and all potential pollutants sources in the SWMP. See Part 1.C.3 of the permit. a) The SWMP Administrator is a specific individual(s), position or title who is responsible for the process of developing, implementing, maintaining, and revising the SWMP. This individual serves as the comprehensive point of contact for all aspects of the facility's SWMP. This requirement may necessitate changes to existing permittees' SWMPs. PART II Permit - Page 26 Permit No. COR -030000 II. CHANGES IN THIS GENERAL PERMIT (cont) b) The requirement to identfr Potential Pollutant Sources has been expanded to include more details for the evaluation of such sources. This evaluation allows for the appropriate selection of BMPs for implementation at a facility or site. Additionally, this section was added to be consistent with the SWMP guide. This requirement may necessitate changes to existing permittees' SWMPs. c) Best Management Practices (BMPs) for Stormwater Pollution Prevention: This section was modified to require the following items to be addressed in the SWMP. These requirements may necessitate changes to existing permittees' SWMPs. This section also requires that the SWMP provide installation and implementation specifications for each BMP identified in the SWMP. For structural BMPs, in most cases, this must include a technical drawing to provide adequate installation specifications. See Part I.C.3(c). i) Dedicated concrete or asphalt batch plants. This section requires that the practices used to reduce the pollutants in stormwater discharges associated with dedicated concrete or asphalt batch plants be identified in the SWMP. (Coverage under the construction site SWMP and permit is not required for batch plants if they have alternate CDPS permit coverage.) ii) Vehicle tracking control. This section requires that practices be implemented to control sediment from vehicle tracking, and that all such practices implemented at the site be clearly described in the SWMP. iii) Waste management and disposal. This section requires that the practices implemented at the site to control stormwater pollution from construction site waste, including concrete washout activities, be clearly described in the SWMP. It also requires that concrete washout activities be conducted in a manner that does not contribute pollutants to surface waters or stormwater runoff iv) Concrete Washout Water. Part I.D.3(c) of the permit has been revised to conditionally authorize discharges to the ground of mcrete wash water from washing of tools and concrete mixer chutes when appropria:. BMPs are implemented. The permit prohibits the discharge of concrete washout water to surface waters and to storm sewer systems. Part I.C.3(c)(7) of the permit requires that BMPs be in place to prevent surface discharges of concrete washout water from the site. The use of unlined pits to contain concrete washout water is a common practice in Colorado. The Division has further evaluated the need for a permit for discharge of concrete washout water to the ground. The Division has determined that the use of appropriate BMPs for on-site washing of tools and concrete mixer chutes would prevent any significant discharge to groundwater. BMPs to protect groundwater are required by Part I.C.3(c)(7) of the permit. Because pH is a pollutant of concern for washout activities, the soil must have adequate buffering capacity to result in protection of the groundwater standard, or a liner/containment must be used. The following management practices are recommended to prevent an impact from unlined pits to groundwater: (1) the use of the washout site should be temporary (less than 1 year), and (2) the washout site should be not be located in an area where shallow groundwater may be present, such as near natural drainages, springs, or wetlands. PART II Permit - Page 27 Permit No. COR -030000 11. CHANGES IN THIS GENERAL PERMIT (cont.) Where adequate management practices are not followed to protect groundwater quality, the Department may require discharges to unlined pits to cease, or require the entity to obtain alternate regulatory approval through notice from either the Water Quality Control Division or the Hazardous Materials and Waste Management Division. In addition, Part I.D.1(b) of the permit has been revised to clearly state that the permit does not authorize on-site permanent disposal of concrete washout waste, only temporary containment of concrete washout water from washing of tools and concrete mixer chutes. Upon termination of use of the washout site, accumulated solid waste, including concrete waste and any contaminated soils, must be removed from the site to prevent on-site disposal of solid waste. v) Construction Dewatering. Part I.D.3(d) of the permit has been revised to conditionally authorize discharges to the ground of water from construction dewatering activities when appropriate BMPs are implemented. The permit does not authorize the discharge of groundwater from construction dewatering to surface waters or to storm sewer systems. Part I.C.3(c)(8) of the permit requires that BMPs be in place to prevent surface discharges. The permittee may apply for coverage under a separate CDPS discharge permit, such as the Construction Dewatering general permit, if there is a potential for discharges to surface waters. The Division has determined that potential pollutant sources introduced into groundwater from construction dewatering operations do not have a reasonable potential to result in exceedance of groundwater standards when the discharge is to the ground. The primary pollutant of concern in uncontaminated groundwater is sediment. Although technology- based standards for sediment do exist in 5 CCR 1002-41, the discharge of sediment to the ground as part of construction dewatering does not have the reasonable potential to result in transport of sediment to the groundwater table so as to result in an exceedance of those standards. For a discharge of water contaminated with other pollutants that are present in concentrations that may cause an exceedance of groundwater standards, separate CDPS discharge permit coverage is required. Contaminated groundwater may include that contaminated with pollutants from a landfill, mining activity, industrial pollutant plume, underground storage tank, or other source of human -induced groundwater pollution and exceeding the State groundwater standards in Regulations 5 CCR 1002-41 and 42. J. Terms and Conditions, General Limitations and Design Standards This section reiterates the requirement that facilities select, install, implement, and maintain appropriate BMPs, following good engineering, hydrologic and pollution control practices. In addition, requirements for protection of water quality standards (see Part I.D.1. (a) of the permit) and requirements to adequately design BMPs to prevent pollution or degradation of State waters (see Part I.D.2 of the permit) have been revised and are fully discussed in Part 1ILB of the rationale, below. Additional language was also added to Section III.B of the rationale further claring the expectations for compliance with this permit. 1. Management of Site Waste This section has been modified to clar fi' that on-site waste must be properly managed to prevent potential pollution of State waters, and that this permit does not authorize on-site waste disposal. Solid waste disposal is regulated by the Hazardous Materials and Waste Management Division. PART II Permit - Page 28 Permit No. COR -030000 Il. CHANGES IN THIS GENERAL PERMIT (cont.) K. Terms and Conditions, SWMP Requirements 1. SWMP Review/Changes: This section now requires that when changes are made to site conditions, the SWMP must be revised immediately, except for some BMP description changes which conditionally may occur within 72 hours. This requirement is included to both ensure that the SWMP be kept accurate and up-to-date, and to clarify that stormwater management at a site typically should be proactive instead of responsive, and be integrated into site management to ensure it is calibrated with those changes. The section was also clarified to state that only changes in site conditions that do not require new or modified BMPs do not need to be addressed in the SWMP. See Part LD.5(c) of the permit. 2. SWMP Certification: The previous permit was unclear on a requirement that the copy of SWMP that remains at the facility had to be signed in accordance with permit signatory requirements. This requirement has been deleted. The signatory requirement of Part I.F.1 only applies to the SWMP if it is to be submitted to the Division or to EPA. See Part I.F.1 of the permit. L Terms and Conditions, Post -Storm Inspections The previous permit required post -storm inspections, but did not sped the timing of inspections. This section now requires that post -storm event inspections generally be conducted within 24 hours of the event. An alternative timeline has been allowed, only for sites where there are no construction activities occurring following a storm event. For this condition, post -storm event inspections shall instead be conducted prior to commencing construction activities, but no later than 72 hours following the storm event, and the delay noted in the inspection report. Any exception from the minimum inspection schedule is temporary, and does not eliminate the requirement to perform routine maintenance due to the effects of a storm event, including maintaining vehicle tracking controls and removing sediment from impervious areas. In many cases, maintenance needs will require a more frequent inspection schedule than the minimum inspections required in the permit, to ensure that BMPs continue to operate as needed to comply with the permit. See Part I.D.6(a) of the permit. M. Terms and Conditions, Inspections 1. The Winter Conditions Inspection Exclusion section has been modified to include documentation requirements for this exclusion. See Part I.D.6(a) of the permit. The Inspection Scope has been modified to include the requirement to inspect waste storage areas during inspections conducted in accordance with the permit. See Part L D.6(b) of the permit. 2. The requirements for sites to qualify for reduced inspection frequencies for completed sites have been slightly modified (see Part I.D.6(a)(2) of the permit,). The requirement now is that only construction activities that disturb the ground surface must be completed. Construction activities that can be conducted without disturbance of the ground surface; for example, interior building construction, and some oil well activities, would not prohibit a site from otherwise'qualifying for the reduced inspection frequency. In addition, the requirement for the site to be prepared for final stabilization has been slightly modified to allow for sites that have not yet been seeded to qualify, as long as the site has otherwise been prepared for final stabilization, including completion of appropriate soil preparation, amendments and stabilization practice. This will allow for sites with seasonal seeding limitations or where additional seed application may be needed in the future to still quay. PART II Permit - Page 29 Permit No. COR -030000 II. CHANGES IN THIS GENERAL PERMIT (cont.) 3. The Inspection Report/Records section (Part ID.6(b)(2)) was added to clarify requirements for inspection reports generated during an inspection conducted in accordance with Part LD.6 of the permit. Inspection reports must be signed by the inspector, or the individual verifying the corrective action indicated in the inspection report, on behalf of the permittee. Inspection reports are not typically required to be submitted to the Division, and therefore, are not required to be signed and certified for accuracy in accordance with Part 1.F.1 of the permit. However, any inspection reports that are submitted to the Division must follow the signatory requirements contained in that section. N. Terms and Conditions, Maintenance, Repair, and Replacement of Control Practices These sections have been added to clam requirements for maintaining the BMPs identified in the SWMP and for addressing ineffective or failed BMPs. BMP maintenance and site assessment to determine the overall adequacy ofstormwater quality management at the site must occur proactively, in order to ensure adequate control of pollutant sources at the site. In most cases, if BMPs are already not operating effectively, or have failed, the issue must be addressed immediately, to prevent discharge of pollutants. See Parts I.D.7 and I.D.8 of the permit. O. Total Maximum Daily Load (TMDL) A section on TMDLs has been added. This section gives a general outline of the additional requirements that may be imposed by the Division if the facility discharges to a waterbody for which a stormwater-related TMDL is in place. See Section VIII.0 of the rationale and Part LD.11 of the permit. P. Additional Definitions Q. Part I.E of the permit has been modified to remove the definition of runoff coefficient, as it is no longer a permit requirement. The definition for state waters has also been deleted, but can be found in Regulation 61. Changes in Discharge The section on the types of discharge or facility changes . Brat necessitate Division notification has been clarified. See Part ILA.1 of the permit. R. Non -Compliance Notification The section on notification to the Division regarding instances of non-compliance has been amended to clarify which types of noncompliance require notification. See Part ILA.3 of the permit. S. Short Term Certifications The previous permit allowed small short-term construction activities to be authorized for a predetermined period from 3 to 12 months, and then automatically expire (an inactivation request did not need to be submitted). The issuance of these certifications has led to significant confusion and incidents of noncompliance resulting from permittees unintentionally letting their certifications expire prior to final stabilization, as well as issues regarding billing. Therefore, the provisions for short-term certifications have been deleted. T. Bypass The Division has revised the Bypass conditions in Part II.A.5 of the permit to be consistent with the requirements of Regulation 61.8(3)(i). The revised language addresses under what rare occurrences BMPs may be bypassed at a site. PART II Permit - Page 30 Permit No. COR -030000 111. BACKGROUND As required under the Clean Water Act amendments of 1987, the Environmental Protection Agency (EPA) has established a framework for regulating municipal and industrial stormwater discharges. This framework is under the National Pollutant Discharge Elimination System (NPDES) program (Note: The Colorado program is referred to as the Colorado Discharge Permit System, or CDPS, instead of NPDES.) The Water Quality Control Division ("the Division") has stormwater regulations (5CCR 1002-61) in place. These regulations require specific types of industrial facilities that discharge stormwater associated with industrial activity (industrial stormwater), to obtain a CDPS permit for such discharge. The regulations specifically include construction activities that disturb one acre of land or more as industrial facilities. Construction activities that are part of a larger common plan of development which disturb one acre or more over a period of time are also included. A. General Permits The Division has determined that the use of general permits is the appropriate procedure for handling most of the thousands of industrial stormwater applications within the State. B. Permit Requirements This permit does not impose numeric effluent limits or require submission of effluent monitoring data in the permit application or in the permit itself. The permit instead imposes practice -based effluent limitations for stormwater discharges through the requirement to develop and implement a Stormwater Management Plan (SWMP). The narrative permit requirements include prohibitions against discharges of non-stormwater (e.g., process water). See Part I.D.3 of the permit. The permit conditions for the SWMP include the requirement for dischargers to select, implement and maintain Best Management Practices (BMPs) at a permitted construction site that adequately minimize pollutants in the discharges to assure compliance with the terms and conditions of the permit. Part I.D.2 of the permit includes basic design standards for BMPs implemented at the site. Facilities must select, install, implement, and maintain appropriate BMPs, following good engineering, hydrologic and pollution control practices. BMPs implemented at the site must be adequately designed to control all potential pollutant sources associated with construction activity to prevent pollution or degradation of State waters. Pollution is defined in CDPS regulations (5CCR 1002-61) as man-made or man -induced, or natural alteration of the physical, chemical, biological, and radiological integrity of water. Utilizing industry -accepted standards for BMP selection that are appropriate for the conditions and pollutant sources present will typically be adequate to meet these criteria, since construction BMPs are intended to prevent the discharge of all but minimal amounts of sediment or other pollutants that would not result in actual pollution of State waters, as defined above. However, site-specific design, including ongoing assessment of BMPs and pollutant sources, is necessary to ensure that BMPs operate as intended. The permit further requires that stormwater discharges from construction activities shall not cause, have the reasonable potential to cause, or measurably contribute to an excursion above any water quality standard, including narrative standards for water quality. This condition is the basis for all CDPS Discharge permits, and addresses the need to ensure that waters of the State maintain adequate water quality, in accordance with water quality standards, to continue to meet their designated uses. It is believed that, in most cases, BMPs can be adequate to meet applicable water quality standards. If water quality impacts are noted, or the Division otherwise determines that additional permit requirements are necessary, they are typically imposed as follows: 1) at the renewal of this general permit or through a general permit specific to an industrial sector (if the issue is sector -based); 2) through direction from the Division based on the implementation of a TMDL (if the issue is watershed -based); or 3) if the issue is site-specific, through a revision to the certification from the Division based on an inspection or SWMP review, or through an individual permit. PART II Permit - Page 31 Permit No. COR -030000 III. BACKGROUND (cont.) Some construction sites may be required to comply with a Qual ming Local Program in place of meeting several of the specific requirements in this permit. Sites covered by a Qual ming Local Program may not be required to submit an application for coverage or a notice of inactivation and may not be required to pay the Division's annual fee. See Section VII of the rationale. C. Violations/Penalties Dischargers of stormwater associated with industrial activity, as defined in the CDPS regulations (5CCR 1002-61), that do not obtain coverage under this or other Colorado general permits, or under an individual CDPS permit regulating industrial stormwater, will be in violation of the Federal Clean Water Act and the Colorado Water Quality Control Act, 25-8-101. For facilities covered under a CDPS permit, failure to comply with any CDPS permit requirement constitutes a violation. As of the time of permit issuance, civil penalties for violations of the Act or CDPS permit requirements may be up to $10,000 per day, and criminal pollution of state waters is punishable by fines of up to $25,000 per day. IV. STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITY The stormwater regulations (CDPS regulations (5CCR 1002-61)), require that stormwater discharges associated with certain industrial activities be covered under the permit program. Construction activity that disturbs one acre or more during the life of the project is specifically included in the listed industrial activities. This permit is intended to cover most stormwater discharges from construction facilities required by State regulation to obtain a permit. A. Construction Activity Construction activity includes ground surface disturbing activities including, but not limited to, clearing, grading, excavation, demolition, installation of new or improved haul and access roads, staging areas, stockpiling of fill materials, and dedicated borrow/fill areas. Construction does not include routine maintenance to maintain original line and grade, hydraulic capacity, or original purpose of the facility. (The maintenance exclusion is intended for projects such as road resurfacing, and where there will be less than one acre of additional ground disturbed. Improvements or upgrades to existing facilities or roads, where at least one acre is disturbed, would not qualify as "routine maintenance.') Definitions of additional terms can be found in Part LE of the permit. Stormwater discharges from all construction activity require permit coverage, except for operations that result in the disturbance of less than one acre of total land area and which are not part of a larger common plan of development or sale. A "larger common plan of development or sale" is a contiguous area where multiple separate and distinct construction activities may be taking place at different times on different schedules. B. Types of Discharges/Activities Covered I. Stormwater: This permit is intended to cover most new or existing discharges composed entirely of stormwater from construction activities that are required by State regulation to obtain a permit. This includes stormwater discharges associated with areas that are dedicated to producing earthen materials, such as soils, sand, and gravel, for use at a single construction site. These areas may be located at the construction site or at some other location. This permit does not authorize the discharge of mine water or process water from borrow areas. This permit may also cover stormwater discharges associated with dedicated asphalt plants and concrete plants located at a specific construction site. PART II Permit - Page 32 Permit No. COR -030000 IV. STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITY (cont.) 2. Process water: Under certain restrictions, discharges to the ground from construction dewatering, and from concrete washout activities, are also covered (see Parts I.C.3(c)(7), I.C.3(c)(8), I.D.3(c) and I.D.3(d) of the permit). C. Types ofActivities NOT Covered 1. Stormwater: Aside from the sources listed in subparagraph B.1, above, this permit does not cover stormwater discharged from construction sites that is mixed with stormwater from other types of industrial activities, or process water of any kind. Other types of industrial activities that require stormwater discharge permits pursuant to different sections of the regulations (Regulation 5 CCR 1002-61, Section 61.2(e)(iii)(A-I, K)], are not covered by this permit. 2. Process water: This permit also does not cover any discharge of process water to surface waters. If the construction activity encounters groundwater, in order to discharge this groundwater to surface waters, a Construction Dewatering Discharge Permit (permit number COG -070000) must also be obtained. An application for this permit can be obtained from the Division at the address listed in Part LA.4(a) of the permit, or at the website in Section I of the rationale. V COVERAGE UNDER THIS GENERAL PERMIT Under this general permit, owners or operators of stormwater discharges associated with construction activity may be granted authorization to discharge stormwater into waters of the State of Colorado. This includes stormwater discharges associated with industrial activity from areas that are dedicated to producing earthen materials, such as soils, sand and gravel, for use at a single construction site, and dedicated asphalt plants and dedicated concrete plants. This permit does not pre-empt or supersede the authority of other local, state or federal agencies to prohibit, restrict or control discharges of storrnwater to storm drain systems or other water courses within their jurisdiction. Authorization to discharge under the permit requires submittal of a completed application form and a certification. that the SWMP is complete, unless the site is covered by a Qualifying Local Program. Upon receipt of all required information, the Division may allow or disallow coverage under the general permit. VL APPLICATION AND CERTIFICATION At least ten days prior to the commencement of construction activities, the owner or operator of the construction site shall submit an original completed application which includes the signed certification that the SWMP is complete. Original signatures are required for the application to be considered complete. For small construction sites only, if the site is covered by a Qualifying Local Program (see below), submittal of an application is not required. For the purposes of this permit, the "operator" is the person who has day-to-day control over the project. This can be the owner; the developer, the general contractor or the agent of one of these parties, in some circumstances. At different times during a construction project, different types of parties may satisfy the definition of "operator" and the certification may be transferred as roles change. (Note - Under the Federal regulations, this application process is referred to as a Notice of Intent, or NOI. For internal consistency with its current program, the Division will continue to use the term "application.") A summary of the permit application requirements is found in the permit at Part LA.4(b). If coverage under this general perrnit is appropriate, then a certification will be developed and the applicant will be certified under this general permit. PART II Permit - Page 32 Permit No. COR -030000 IV STORMWATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITY (cont.) 2. Process water: Under certain restrictions, discharges to the ground from construction dewatering, and from concrete washout activities, are also covered (see Parts I.C.3(c)(7), I.C.3(c)(8), I.D.3(c) and I.D. 3(d) of the permit). C. Types ofActivities NOT Covered 1. Stormwater: Aside from the sources listed in subparagraph B.1, above, this permit does not cover stormwater discharged from construction sites that is mixed with stonnwater from other types of industrial activities, or process water of any kind. Other types of industrial activities that require stormwater discharge permits pursuant to different sections of the regulations (Regulation 5 CCR 1002-61, Section 61.2(e)('iii)(A-I, K)J, are not covered by this permit. 2. Process water: This permit also does not cover any discharge of process water to surface waters. If the construction activity encounters groundwater, in order to discharge this groundwater to surface waters, a Construction Dewatering Discharge Permit (permit number COG -070000) must also be obtained. An application for this permit can be obtained from the Division at the address listed in Part I.A.4(a) of the permit, or at the website in Section I of the rationale. V. COVERAGE UNDER THIS GENERAL PERMIT Under this general permit, owners or operators of stormwater discharges associated with construction activity may be granted authorization to discharge stormwater into waters of the State of Colorado. This includes stormwater discharges associated with industrial activity, from areas that are dedicated to producing earthen materials, such as soils, sand and gravel, for use at a single construction site, and dedicated asphalt plants and dedicated concrete plants. This permit does not pre-empt or supersede the authority of other local, state or federal agencies to prohibit, restrict or control discharges of stonnwater to storm drain systems or other water courses within their jurisdiction. Authorization to discharge under the permit requires submittal of a completed application form and a certification that the SWMP is complete, unless the site is covered by a Qualifying Local Program. Upon receipt of all required information, the Division may allow or disallow coverage under the general permit. VI. APPLICATION AND CERTIFICATION At least ten days prior to the commencement of construction activities, the owner or operator of the construction site shall submit an original completed application which includes the signed certification that the SWMP is complete. Original signatures are required for the application to be considered complete. For small construction sites only, if the site is covered by a Qualing Local Program (see below), submittal of an application is not required. For the purposes of this permit, the "operator" is the person who has day-to-day control over the project. This can be the owner, the developer, the general contractor or the agent of one of these parties, in some circumstances. At different times during a construction project, different types of parties may satisfy the definition of "operator" and the certification may be transferred as roles change. (Note - Under the Federal regulations, this application process is referred to as a Notice of Intent, or NOI. For internal consistency with its current program, the Division will continue to use the term "application.") A summary of the permit application requirements is found in the permit at Part I.A.4(b). If coverage under this general permit is appropriate, then a certification will be developed and the applicant will be certified under this general permit. PART II Permit - Page 33 Permit No. COR -030000 VII. QUALIFYING LOCAL PROGRAMS For stormwater discharges associated with small construction activity (i.e., one to five acre disturbed area sites), the permit includes conditions that incorporate approved qualing local erosion and sediment control program (Qualifying Local Program) requirements by reference. A Qualifying Local Program Ls a municipal stormwater program for stormwater discharges associated with small construction activity' that has been formally approved by the Division. The requirements for Qualifying Local Programs are outlined in Part 61.8(12) of the Colorado Discharger Permit System Regulations (also see the Division 's "Qualifying Local Programs for Small Construction Sites - Application Guidance"). Such programs must impose requirements to protect water quality that are at least as stringent as those required in this permit. A. Approval Termination A Qualifying Local Program may be terminated by either the Division or the municipality. Upon termination of Division approval of a Qualifying Local Program, any small construction activity required to obtain permit coverage under Section 61.3(2)(h) of the CDPS regulations (5CCR 1002-61), shall submit an application form as provided by the Division, with a certification that the Stormwater Management Plan (SWMP) is complete as required by Part LA.3 of the permit, within 30 days of Division notification. B. Approval Expiration Division approval of a Qualifying Local Program will expire with this general permit on June 30, 2012. Any municipality desiring to continue Division approval of their program must reapply by March 31, 2012. The Division will determine if the program may continue as a approved Qual ling Local Program. VIII. TERMS AND CONDITIONS OF PERMIT A. Coverage under a Qualifying Local Program — For Small Construction Sites Only For small construction sites (disturbing less than 5 acres) covered under a Qual ming Local Program (see Section VII, above), only certain permit requirements apply, as outlined below. The local program must have been formally designated by the Division to qualify. Most municipalities have some type of local program and may require permits and fees. However, simply having a program in place does not necessarily mean that it is a qualifying program and that a State permit is not required. The local municipality is responsible for notifying operators and/or owners that they are covered by a Qualifying Local Program. As of May 31, 2007, the only approved Qualifying Local Programs within the state are for Golden, Durango and Lakewood. An updated list of municipalities with Qualing Local Programs, including contact information, is available on the Division 's website at: http:•/.iwww. cdphe.state. co. ush%'q/Permits Unit'storrn water,consiruction. html. The Division reserves the right to require any construction owner or operator within the jurisdiction of a Qualifying Local Program covered under this permit to apply for and obtain coverage under the full requirements of this permit. I. Permit Coverage: If a construction site is within the jurisdiction of a Qualifying Local Program, the owner or operator of the construction activity is authorized to discharge stormwater associated with small construction activity under this general permit without the submittal of an application to the Division. The permittee also is not required to submit an inactivation notice or payment of an annual fee to the Division. PART II Permit - Page 34 Permit No. COR -030000 VIII. TERMS AND CONDITIONS OF PERMIT (cont) 2. Permit Terms and Conditions: The permittee covered by a Qualifying Local Program must comply with the requirements of that Qualifying Local Program. In addition, the following permit sections are applicable: a) Parts 1.A.1, 1.A.2, and 1.A.3: Authorization to discharge and discussion of coverage under the permit. b) Part LD.1: General limitations that must be met in addition to local requirements. c) Parts I.D.2, LD.3, LD.4: BMP implementation, prohibition of non-stormwater discharges unless addressed in a separate CDPS permit, and requirements related to releases of reportable quantities. d) Part ID.11: Potential coverage under a Total Maximum Daily Load (TMDL). e) Part LE: Additional definitions. f) Part II (except for Parts IIA.1, II B.3, II B.8, and JI.B.10): Specifically includes, but is not limited to, provisions applicable in the case of noncompliance with permit requirements, and requirements to provide information and access. B. Stormwater Management Plans (SWMPs) Prior to commencement of construction, a stormwater management plan (SWMP) shall be developed and implemented for each facility covered by this permit. A certification that the SWMP is complete must be submitted with the permit application. The SWMP shall idents potential sources of pollution (including sediment) which may reasonably be expected to affect the quality of stormwater discharges associated with construction activity from the facility. In addition, the plan shall describe the Best Management Practices (BMPs) whichswill be used to reduce the pollutants in stormwater discharges from the construction site. (Note that permanent stormwater controls, such as ponds, that are used as temporary construction BMPs must be adequately covered in the SWMP) Facilities must implement the provisions of their SWMP as a condition of this permit. The SWMP shall include the following items: 1. Site Description 2. Site Map 3. Stormwater Management Controls 4. Long-term Stormwater Management 5. Inspection and Maintenance (See Parts I.B. and 1. C of the permit for a more detailed description of SWMP requirements) The Division has a guidance document available on preparing a SWMP. The document is included as Appendix A of the permit application, and is available on the Division's website at www.cdphe.state.co.us/weiPermirslinit. PermirsUnit. Some changes have been made to the SWMP requirements. See Section 11.1 of the rationale for a discussion on permittee responsibilities regarding those changes. PART II Permit - Page 35 Permit No. COR -030000 VIII. TERMS AND CONDITIONS OF PERMIT (cont.) Master SWMP Often, a large construction project will involve multiple smaller construction sites that are within a common plan of development, or multiple well pads under construction within an oil and gas well field. Pollutant sources and the types of BMPs used can be relatively consistent in such cases. A permittee could significantly streamline the SWMP development process through the use of a master SWMP. SWMP information must be developed and maintained for all construction activities that exceed one acre (or are part of a common plan of development exceeding one acre) conducted within the permitted area. By developing a single master plan, the permittee can eliminate the need to develop repetitive information in separate plans. Such a plan could include two sections, one containing a reference section with information applicable to all sites (e.g., installation details and maintenance requirements for many standard BMPs, such as silt fence and erosion blankets), and the second containing all of the information specific to each site (e.g., site BMP map, drainage plans, details for BMPs requiring site specific design, such as retention ponds). As new activities begin, information required in the SWMP is added to the plan, and as areas become finally stabilized, the related information is removed. Records of information related to areas that have been finally stabilized that are removed from the active plan must be maintained for a period of at least three years from the date that the associated site is finally stabilized. C. Total Maximum Daily Load (TMDL) If the designated use of a stream or water body has been impaired by the presence of a pollutant(s), development of a Total Maximum Daily Load (TMDL) may be required. A TMDL is an estimate of allowable loading in the waterbody for the pollutant in question. Types of discharges that are or have the potential to be a significant source of the pollutant are also identified. If a TMDL has been approved for any waterbody into which the permittee discharges, and stormwater discharges associated with construction activity have been assigned a pollutant -specific Wasteload Allocation (WLA) under the TMDL, the Division will either: I. Noth' the permittee of the TMDL, and amend the permittee's certification to add specific BMPs and/or other requirements, as appropriate; or 2. Ensure that the TMDL is being implemented properly through alternative local requirements, such as by a municipal stormwater permit. (The only current example of this is the Cherry Creek Reservoir Control Regulation (72.0), which mandates that municipalities within the basin require specific BMPs for construction sites.) See Part I.D. I1 of the permit for further information. D. Monitoring Sampling and testing of stormwater for specific parameters is not required on a routine basis under this permit. However, the Division reserves the right to require sampling and testing on a case-by-case basis, in the event that there is reason to suspect that compliance with the SWMP is a problem, or to measure the effectiveness of the BMPs in removing pollutants in the effluent. See Part I.D.1(e) of the permit. E. Facility Inspections Construction sites typically must inspect their stormwater management controls at least every 14 days and within 24 hours after the end of any precipitation or snowmelt event that causes surface erosion. At sites or portions of sites where ground -disturbing construction has been completed but a vegetative cover has not been established, these inspections must occur at least once per month. (At sites where persistent snow cover conditions exist, inspections are not required during the period that melting conditions do not exist. These PART II Permit - Page 36 Permit No. COR -030000 VIII. TERMS AND CONDITIONS OF PERMIT (cont.) conditions are only expected to occur at high elevations within the Colorado mountains.) For all of these inspections, records must be kept on file. Exceptions to the inspection requirements are detailed in Part I.D.6 of the permit. F. SWMP Revisions The permittee shall amend the SWMP whenever there is a change in design, construction, operation, or maintenance of the site, which would require the implementation of new or revised BMPs. The SWMP shall also be amended fit proves to be ineffective in achieving the general objectives of controlling pollutants in stormwater discharges associated with construction activity. The timing for completion of SWMP changes is detailed in Parts I.D.5(c) and I.D.5(d) of the permit. SWMP revisions shall be made prior to change in the field, or in accordance with Part LD.5(d) of the permit. G. Reporting The inspection record shall be made available to the Division upon request. Regular submittal of an annual report is not required in this permit. See Part I.D.9 of the permit. 11. Annual Fee The permittee is required to submit payment of an annual fee as set forth in the Water Quality Control Act. Permittees will be billed for the initial permit fee within a few weeks of permit issuance and then annually, based on a July 1 through June 30 billing cycle. I. Responsibility for Permit The permit certification for a site may be inactivated, once coverage is no longer needed. The certification may be transferred, if another parry is assuming responsibility for the entire area covered by the certification. In addition, permit responsibility for part the area covered by the certification may be reassigned to another parry. These actions are summartaed below. The Stormwater Program construction fact sheet explains these actions in further detail under the section on Multiple Owner/Developer Sites, and is available on the Division website at http:%Yu'ww.cdphe.srate.co.us/wq/Permits Unit/stornrwater/ConstFactSheet.PDF, Section F. I. Inactivation Notice: When a site has been finally stabilized in accordance with the SWMP, the permittee shall submit an Inactivation Notice that is signed in accordance with Part I.F.1 of the permit. A summary of the Inactivation Notice content is described in Part LA.6 of the permit. A copy of the Inactivation Notice form will be mailed to the permittee along with the permit certification. Additional copies are available from the Division. For sites where all areas have been removed from permit coverage, the permittee may submit an inactivation notice and terminate permit coverage. In such cases the permittee would no longer have any land covered under their permit certification, and therefore there would be no areas remaining to finally stabilize. Areas may be removed from permit coverage by: - reassignment of permit coverage (PartI.A.8 of the permit); - sale to homeowner(s) (Part LA.9 of the perrnit); or -amendment by the permittee, in accordance with Division guidance for areas where perrnit coverage has been obtained by a new operator or returned to agricultural use. VIII. TERMS AND CONDITIONS OF PERMIT (cont.) PART I1 Permit - Page 37 Permit No. COR -030000 2. Transfer of Permit: When responsibility for stormwater discharges for an entire construction site changes from one individual to another, the permit shall be transferred in accordance with Part LA. 7 of the permit. The permittee shall submit a completed Notice of Transfer form, which is available from the Division, and at www.cdphe.siate.co.usiwq/PertnitsUnit. If the new responsible party will not complete the transfer form, the permit may be inactivated if the permittee has no legal responsibility, through ownership or contract, for the construction activities at the site. In this case, the new owner or operator would be required to obtain permit coverage separately. 3. Reassignment of Permit: When a permittee no longer has control of a specific portion of a permitted site. and wishes to transfer coverage of that portion of the site to a second party, the permittee shall submit a completed Notice of Reassignment of Permit Coverage form, which is available from the Division, and at www.cdphe.state.co.uc/wq/PerntitsUnit. The form requires that both the existing permittee and new permittee complete their respective sections. See Part LA.8 of the permit. J. Duration of Permit The general permit will expire on June 30, 2012. The permittee's authority to discharge under this permit is approved until the expiration date of the general permit. Any permittee desiring continued coverage under the general permit past the expiration date must apply for recertification under the general permit at least 90 days prior to its expiration date. Kathleen Rosow December 18, 2006 LY. PUBLIC NOTICE — 12/22/06 The permit was sent to public notice on December 22, 2006. A public meeting was requested, and was held on February 2, 2007. Numerous comments were received on the draft permit. Responses to those comments, and a summary of changes made to the draft permit, are in a separate document entitled "Division Response To Public Comments." The permit will be sent to a second public notice on March 23, 2007. Any changes resulting from the second public notice will be summarized in the rationale. Kathleen Rosow March 22, 2007 X. PUBLIC NOTICE — 3/23/07 The permit was sent to public notice for a second time on March 23, 2007. Numerous comments were received on the second draft permit. Responses to those comments, and a summary of the additional changes made to the draft permit, are contained in a separate document entitled "Division Response To Public Comments Part II". This document is part of the rationale. Any changes based on the Division response are incorporated into the rationale and permit. The response document is available online at http:."'ww i,:cdphe.state.co.u.shuq/PermitsUnit,stornrwaterrconstruction.himl, or by emailing cdphe. wgstorm(iistatc.co.rts, or by calling the Division at 303-692-3517. Kathleen Rosow Malt 31, 2007 NOXIOUS WEED NMANACE.MENT PLAN FOR MARATI 011., COMPANY CAR1 1EL1) COUNTY, CO. Prepared by Pa1Her & Girard, Inc. Ar5gust, 2001 INTRODUCTION: This plan is intended to be used as a guide for the management of Garfield County and State of Colorado designated noxious weeds on land leased, owned or managed by Marathon Oil Company in Garfield County, Colorado. Priority will be given to eradication of Garfield County designated noxious weeds. (See attached list). A Noxious Weed Inventory of will be performed on each proposed construction site as they are submitted to Garfield County for approval. The results, including a map of any infestations will accompany this document. Site specific control measures will also be included. This Weed Management Plan will emphasize prevention and early detection of noxious weeds which may occur on disturbed areas. t. Inventory and Mapping A visual inspection of the proposed project will be performed prior to the approval process. A map of the area will be included. The area will be re -inspected annually and if found, new weed infestations will be added to the map using GPS coordinates. II. Prevention One of the best ways to prevent noxious weed from becoming established is to re - vegetate all newly disturbed areas with competitive species of plants as soon after disturbance as feasible. Seed mixtures for revegetation will be designated by Marathon Oil Company with the assistance of the Natural Resources Conservation Service or Colorado State University Cooperative Exstension Note: The recommended seed mixtures should be applied with a broadcast seeder followed by harrowing with a sharp- toothed harrow to achieve a cover depth of 1/4 to 2 inches. Drill seeding and/or hydroseeding may be utilized in some areas. If mulch is used it should be Certified weed -free straw or hay or packaged hydro mulch. Revegetation projects will be evaluated one year after completion for effectiveness. III. 'Treatment Priority will be given to Garfield County listed noxious weeds. Herbicide treatrnents will be approved by the Regulatory Specialist for Marathon Oil Company. All herbicide treatments will be performed by Colorado Department of Agriculture licensed personnel using approved herbicides. Product label directions will be strictly adhered to. Special precautions to protect sensitive vegetation, surface and ground water resources will include: 1. No herbicide applications when wind exceeds 10 mph to reduce the chance of drift and related damage to non -target plants. 2. Only aquatic labeled herbicides will be used near surface water and wetlands. 3. Bareground herbicides will not be applied if heavy rainfall is expected to occur on the same day to reduce the chances of the product moving off-site. Methods of Treatment: Chemical: Due to the nature of average weed infestations, chemical treatrnents will be the most effective and cost efficient. Herbicides will be applied by truck mounted power sprayers, ATVs and/or backpack sprayers as appropriate for each individual situation. Specific herbicides and application rates for commonly occurring noxious weeds are included in the attached document (Appendix A). Herbicide treatments of noxious weeds, if necessary, are expected to begin in the month of June at this elevation and continue thru August. Mechanical: Annual and Biennial noxious weeds may be controlled by chopping the root below ground level with a shovel or hoe. This method can be used by Marathon field personnel when individual plants or small infestations are encountered. Evaluation of Treatments and Follow-up Treatments All treatments will be evaluated for efficacy in the fall and re -treatment will be performed if necessary. Inspections will be conducted throughout the spraying season and any new findings will be added to the GPS mapping system. TREATMENT RECOMMENDATIONS: BIENNIALS Bull thistle: Spray with Tordon 22 K herbicide at 1 pint per acre when plant is in the rosette stage of growth, increase rate to 1 1/2 pints when plant has bolted. Musk thistle: Same as Bull thistle. Houndstongue: Spray with Tordon 22k herbicide at 1 1/2 pints per acre in the rosette stage of growth. Common mullein: Spray with Escort or Telar herbicide at 1 ounce per acre prior to bloom. Add a quality surfactant. Or spray with Tordon 22K at 1 pint per acre when plant is in rosette stage. Common burdock: Spray with Redeem herbicide at 2 quarts per acre in rosette or in early bolt stage of growth. ANNUALS Russian thistle: Spray with 2,4-D 41b. Amine at 2 quarts per acre in early spring. Add a high quality surfactant. Or spray with Roundup at 2 quarts per acre in early spring. Kochia : Same as Russian thistle. PERENNIALS Canada thistle: Spray with Tordon 22K herbicide at 1 quart per acre when plant is in bud to bloom stage of growth or during fall regrowth. BAREGROUND TREATMENTS: Spray designated areas with a preemergent herbicide such as Sahara DG at 10 pounds per acre plus Roundup at 2 quarts per acre in early spring prior to normal periods of rainfall. 16' 21 3 2 10 15 22 27 34 '+ 7 13 24 i 19 23 8 Legend PROPOSED FACILITIES G45 GATHERING WATER LINES: FRESH I PRODUCED •>• FROP P,L CORRIDOR IIIOT SURVEYED/ �Belt), Pal - Bus Berry Pel •Awe:.,1 Im Bary Pal • F13rnn 3 Belly Pei . PIC -p 1 M Tar,el L6C&601 2008 SITE (OR CPT) ASSUMED WELL LOCATIONS TO BE DRILLED BY FDC FUTURE SITE • TO BESTAXED • STAKED WELL LOCATIONS •—TRACE. ROADS BURIED WATER PL I.alathcO Lease IfaCIS exry Petroleum 11 14 12 .13 5 4 3 16 IS 12 13 29 23 15 14 23 27 0101296 925 as 075 1 \1 ®L9H 15 19 17 20 29 9 16 10 11 23 10 33 12 23 24 26 36 t 1 1 1 i I i i i I I i rltE tt+mkr, 1,1 11, f 'f cuf, Marathon Oil Company u;;Po Piceance Basin Well Pad and Tower Locations IJD27 C.:f'n9Cv.%SExlla• 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I. PUMPING STATION The proposed Pumping Station is located just west of Parachute Creek and just north of Williams Grand Valley Gas Plant. Existing vegetation on the site includes Big sagebrush, Rabbitbrush and Wheatgrasses on the undisturbed portion. Areas which have been previously disturbed are inhabited with annual weeds such as Russian thistle and Sunflower spp. A noxious weed inventory was conducted on August 1, 2007 by Paller & Girard, Inc. The only noxious weed detected was Musk thistle (Carduus nutans). The infestation is less than 25 plants in size and will be sprayed with an appropriate herbicide prior to construction. This site will be monitored for re -infestation and follow-up treatments will be performed as necessary. Existing vegetation at Pumping Station site. Z 0 0 _0 . ri • M 0 �m — M Z O O 0 M Z 0 0 O M 108°09.000' W 108°08.000' W TOPO! map printed on 08/06/07 from "mocwh.tpo" 108°07.000' W 108°06.000' W WGS84 108°05.000' W { rte,\\__ • • • /°5 ✓r � / ✓ f .81,74115 1 f ei ,!Pr°spe°t:-' aa"' /10095 ,. �`` A, '''''c;; 0)' _/',../.913e5,-:'- .. 5797, I. 0013Y°.$ 916 N,108°06.730' W.MUSK THISTLE 25 PLANTS Oil Shale —Ptant Unda.uer -- 'Point t. -SPrivar 93150 \ • Spring Z �f Sp ✓\��r �j/ - rn •\ • � r ,Map created with •TOPO' N)-©2006.National,Geographic\/ / / ; 108°09.000' W 108°08.000' W mac'/ Gaye: -Pr. •' / if+ ravel Po, Granle.e./ •/% L- .3 FSP •- _Ra / 108°07.000' w 108°06.000' W WGS84 108°05.000' W NATIONAL GEOGRAPHIC MI_ES 1003 ..,•;� apo X1003 .....Tp 9000 fFFI 0 KgOMfTERS 0 •.007 `111103 1CCC I� — S 11111 - w - - - - - IN r M Ir M - - N TN*'MN 111/2° OS/06/07 II. ROCK QUARRY The proposed Rock Quarry site is located at N39 33569', W108 09.884'. Existing vegetation this site features Big sagebrush, Oak, serviceberry, Snowberry, needlegrasses and Lupine. A noxious weed inventory was conducted on August 1, 2007 by Paller & Girard, Inc. No noxious weeds were discovered on this site. After construction of the quarry, the site will be re -inventoried and mapped . If any noxious weeds are discovered, they will be treated with and appropriate herbicide. Existing vegetation at the proposed Rock Quarry Site. gpieuriimaomaigoisimiso III. PROPOSED GAS GATHERING RIGHT-OF-WAY The proposed gas gathering system is approximately 5 miles long (see attached map) and traverses a variety of elevations and vegetation types. Most of the proposed right-of- way is through undisturbed native vegetation as shown in the photographs below. A noxious weed survey was conducted on August 1, 2007 by Paller & Girard, Inc. Most of the accessible sections of the right-of-way were walked by the surveyor. The more difficult to access sections were entered at random intervals from roads and other pipelines and visual inspections were performed. Only a few individual noxious weed plants were encountered and physically removed by the surveyor. Plants found were Bull thistle (Cirsium vulgare) and Houndstounge, (Cynoglossum officianle). One small infestation of Houndstongue and Common mullein was found in an area that had been overgrazed (See attached map). This area will be treated with an appropriate herbicide prior to any construction on the site. The entire right-of-way will be monitored annually for new infestations of noxious weeds and timely treatments will be made if necessary. • Typical native vegetation found on the right-of- way. z 0 0 0 0 0 M 39°30.000' N - M. 11111 11111 r N MN- NM 1 N r-11111 11110 - 108°14.000' W TOPO! map printed on 08/06/07 from "mocwh.tpo" 108°13.000' W 108°12.000' W 108°11.000' W WGS84 108°10.000' W NATIONAL GEOGRAPHIC 108°14.000' W 108°13.000' W 1f p 108°12.000' W 5 M1itS xKO rtt1 Kil CMFCFRS :ow 108°11.000' W 39°31.000' N 39°30.000' N WGS84 108°10.000' W T147/MN I/111/2° 08/06/07 III. A. TYPICAL VEGETATIVE COVER ON EXISTING RIGHT-OF-WAY The proposed gas gathering system parallels an existing pipeline right-of-way in some areas. The existing right-of-way was inspected for noxious weeds during the course of the inventory. The revegetation in these areas has not yet become established and the vegetative cover is composed mainly of grasses and annual weeds. A few individual Houndstongue and Bull thistle plants were encountered and were hand pulled. Typical vegetative cover on the existing pipeline. M Marathon MARATHON Oil Company Rockies Gas — Piceance Gas Field Emergency Response Plan 1 of 31 Table of Contents Plan Approval Signature Page 3 Introduction 4 Reporting an Emergency 5 Notifications 6 Communication Guidelines 8 Emergency Response Actions 9 Facility and Structure Fires 9 Wild Land Fires 10 Mountain Rescue 11 Natural Disasters 12 Well Control Emergency 14 Oil and Produced Water Spills 16 Gas Release 18 Terrorist / Bomb Threat 19 Marathon Employee Injury 20 Contractor Employee Injury 21 ICS Section 22 Tier I 22 Piceance Production ICS Structure 23 Tier II 24 Tier III 25 Response Management System (RMS) 26 Debrief (Critique of Incident) 27 Agency Notification Information 28 Piceance Emergency Phone Numbers 31 2of31 Introduction This ERP provides Marathon employees with an "all hazards" plan of action during foreseeable emergencies. Task supervisors will provide specific directions to the employees, contractors, and visitors in each situation as conditions warrant. Appropriate supervisors and managers must become thoroughly familiar with this plan and must initiate the emergency plans and procedures when and where necessary. Throughout this plan, the term task supervisor refers to the Marathon employee in charge of a particular work activity. Task supervisors will inform personnel of the hazards, risks, emergency plans, and procedures concerning their operations. During emergencies, personnel should be instructed to take control and prevention measures if they can be performed safely. Personnel safety must be the first consideration. Proper and adequate information and training is essential in order to assure proper actions are taken during emergencies. In most cases, the quick action of employees during the initial stages of an emergency make the difference between handling a dangerous situation safely and one which can result in property Toss and injuries. Marathon utilizes the Incident Command System (ICS) and Response Management System (RMS) to respond to emergencies. Each asset team within the Business Unit has an ICS structure. The overall strategic objectives in any emergency response will be as follows: • Maximize personnel and public safety; • Identify, isolate, and control source; • Maximize protection of environmental, social, and economically sensitive areas; • Minimize long term impacts on wildlife; • Minimize secondary environmental impacts from wastes; and • Establish a positive relationship with agencies. 4 of 31 Reporting an Emergency 1. Contact Personnel Production Superintendent — Curtis Ryland Office: (970) 245-5233 2230 Mobile: (970) 640-4851 Safety Professional - Rich Connell Office: (970) 245-5233 2223 Mobile: (281) 536-9258 Environmental Professional — Adel! Heneghan Office: (970) 245-5233 2243 Mobile: 2. Identify yourself 3. State the nature of the emergency 4. Give exact location 5. Describe the extent and/or history of events that led up to the emergency 6. Make sure all information is understood 5 of 31 Notification EXECUTIVE MANAGEMENT 4 LINE MANAGEMENT LOCAL MANAGEMENT Activate/Initiate Response Actions MAJOR EMERGENCY i CERT TEAM LEADER r EST 1- IEST ESG Local Management will notify the Marathon CERT Team Leader (1-877-MAPLINE) The Marathon central notification system will connect local management with a CERT Team Leader or the appropriate emergency response organization based on incident circumstances: • press one and a representative will answer • identify yourself • state the nature of the incident • give your exact location • describe the extent of the incident • state the extent of any injuries or casualties • advise of assistance required • provide your call back number Upon notification of an incident by the 24-hour emergency call service, the supervisor is responsible for contacting the appropriate individuals in the ICS. 1. If the incident involves a contractor, the Incident Commander will contact the contract company and advise them of the situation 6 of 31 2. If the incident requires additional company response actions, the Incident Commander shall mobilize additional resources, coordinate the response and be responsible for initiating Marathon CERT notification, if required. CERT To assure that total corporate manpower, resources, support, and response management are available to communicate, respond to, and manage an emergency, Marathon Oil Company maintains a Corporate Emergency Response Team (CERT). CERT Notification Activation As identified in the Emergency Policy and Plan document local management has a responsibility to notify CERT whenever an emergency is or may become a Major Emergency. Local Management must utilize their best judgment to notify CERT for potential involvement. One should error on the conservative side rather than not notifying CERT. The following are examples of major emergencies: • An event resulting in a fatality. • An event resulting in the hospitalization of three (3) or more people • An explosion /fire not immediately handled by local resources. • An explosion/fire which could result in substantial loss. • Any hydrocarbon spill in excess of 500 barrels or any spill in excess of 50 barrels that reaches fresh water • A hazardous substance spill/release in excess of three (3) times the U.S. Federally reportable quantity. • A smaller spill or release of oil or hazardous substance in environmentally or socially sensitive areas. • An evacuation of five (5) or more residential homes or all or part of one or more public buildings. • An event which receives more than passing local media coverage or any regional/national media attention. • Whenever loss of well control occurs. • Any terrorist activities. • A natural disaster which may develop into a Major Emergency. • A situation -involving product recalls or tainted or contaminated merchandise. • Any other event in which third -party damage could exceed $100,000 or Company property damages or losses could exceed $250,000. NOTE: THIS LIST IS NOT TO BE CONSTRUED AS ALL-INCLUSIVE. LOCAL MANAGEMENT SHOULD UTILIZE THEIR BEST JUDGEMENT IN INFORMING CERT OF MAJOR EMERGENCIES. Local Management is responsible for responding to emergencies that impact their facilities and operations. If the emergency is a MAJOR EMERGENCY, or if the emergency has the potential of developing into a MAJOR EMERGENCY, LOCAL MANAGEMENT MUST NOTIFY THE CERT TEAM LEADER IMMEDIATELY AFTER ACTIVATING THE LOCAL RESPONSE PLAN. 7 of 31 Communication Guidelines Communications during an emergency incident will be accomplished using cellular telephones, land line telephones, Satellite telephones, and/or two-way radio. Other forms of communication may include e-mail, for example, to record communications to agencies or corporate personnel. For areas where cell phone coverage is not available, emergency personnel will locate and travel to the nearest cell service area or use satellite phones if equipped. During an incident, radios will be used for emergency use only. Communications during emergencies must be accurate and concise. Non -emergency related radio communications are not allowed during an incident. Some areas may have designated frequencies for use in emergencies only. It is imperative that all battery powered phone users have one spare battery and charger to ensure that they have adequate battery back up during any emergency response. May 15, 2007 Page 8 of 31 • If fire is not beyond incipient stage, oil attempt to extinguish the fire if trained to do so. Emergency Response Actions Facility and Structure Fires If a fire occurs at any Marathon Oil Company facility, action should be designed to protect human life and control the emergency as rapidly as possible. All steps should be considered; however, timing of these steps may be altered to the individual circumstances to best accomplish these objectives. Discovery Determine the ype' of Fire 1 Report Emergency 1 Cut off Additional Sources 1 Account for Personnel 1 Develop Further Arrangements Notifications May 15, 2007 Poco® @@ ©@TE'Rbj®U -FoQc, E D @M® MCM@h@G1 • Call 911 as appropriate for the area • Give adequate directions ▪ Inform fire department if sour gas is present • Notify Production Superintendent II• Shut off all feeder lines into the facilityfinstallation • Cut off all electrical power in area of fire • If hydrocarbons are in storage flow away from affected area 0 • Account for personnel who may have been in the area at the time • In the event of injury, call for medical service • Remove unauthorized personnel and isolate the area • Notify local law enforcement and request assistance if needed 111 • Make arrangements for continuous water supply if needed • If hydrocarbons were spilt develop containment and clean-up plans 6 • Refer to the Agency Notification section for reporting requirements and contact information Page 9 of 31 Wild land Fires Marathon and contractors working for Marathon are not to attempt to fight any wild land fire beyond the incipient stage, regardless of training. This includes the use of earth moving equipment to construct fire breaks. Discovery 1 Bance@perato@] o fog Q w0 Hance Determine the Type of Fire Report Emergency Cut off Additional Sources owchart I • If fire is not beyond incipient stage, attempt to extinguish the Fre if trained to do so Account for Personnel Develop Further Arrangements Notifications May 15, 2007 • Call 911 as appropriate for the area • Contact personnel at guard shack Provide location of fire Inform others in the area • Notify Production Superintendent • Isolate natural gas and flammable materials • Cut off all electrical power in area of fire • If hydrocarbons are in storage flow away from affected area • Account for personnel who may have been in the area at the time • Remove unauthorized personnel and isolate the area • Notify local law enforcement and request assistance if needed • Personnel shall not attempt to fight any fire beyond the incipient stage © • Develop containment and clean-up plans for any locations impacted by the fire 6 • Refer to the Agency Notification section for reporting requirements and contact information Page 10 of 31 Mountain Rescue In the unlikely event a person becomes lost, involved in a fall over a cliff, or other emergency rescue type incident, Marathon personnel will respond to the emergency rescue by calling 911. No attempts of rescue shall be performed by untrained personnel. Iti@ocf@g Determine the type of incident Report Emergency CaII in support Notifications May I Pb@eng@ 0 ° .k I • If person (s) is lost, fell over a cliff, or involves another mountain rescue emergency - do not attempt a resr.un hnfnrn callinn fnr heln IlCall 911 - Report emergency to local authorities. Give name, contactor number, location (GPS coordinates, if possible) and explain the nature of the emergency. IIAdditional agency support may be required. As requested by the emergency response incident command, a Marathon support personnel and/or equipment may be needed. 4 • Refer to the Agency Notification section for reporting requirements and contact information Page 11 of 31 Natural Disasters All actions should be designed to protect human life and safeguard against a disaster. All steps listed should be considered; however, timing of these steps may be altered to fit the individual circumstances. Tornadoes, severe lightning are a threat in the Rockies Gas - Piceance area. It is difficult to prepare in advance for a tornado since its frequency, location, and direction is unpredictable. When an area is threatened, protection of the employee is the primary concern. When sufficient notice is available, take whatever steps possible to minimize property damage such as: 1. Store and/or secure all drums, buckets, signs, and other small objects which might blow away. 2. Remove equipment easily moved from low areas easily, which might be damaged by flooding. 3. Board up windows, secure doors in buildings, and remove window type air condition units. 4. Evacuate unnecessary mobile equipment and personnel to a safe location. 5. If time permits, start filling tanks and thin-walled vessels with water, shut-in wells and associated facilities. May 15, 2007 Page 12 of 31 Notify Other Personnel Shut in Facility if Required Account for Personnel Return to Field Notifications May 15, 2007 Iocmllig® ©1®@] Until [Ankm NIcyc N • Activate warning system as • Notify Production Supervisor" • Shut-in field if conditions • Secure equipment and mat might move during a disaster. II • Account for all personnel in the area • Evacuate al non-essential personnel • If the situation becomes life threatening, evacuate remaining personnel 4 • Conduct a site evaluation and report status to the Production Supervisor and Asset Team Manager • Implement Spill containment and cleanup if required • Refer to the Agency for reporting require information Page 13 of 31 Equipment Shut Down Evacuation Move Equipment CaII in support Make Future Arrangements Gain Control of Well Notifications May 15, 2007 PoOtTI:O@ OIDONa@ YAM ©01A700 MDM@N TR 111 • If a rig is on location, shut down all engines I • Evacuate all personnel to a safe distance • Account for all personnel who were in the area at the time • Move all vehicles out of the immediate area • Clear all other equipment that can be safely moved provided there is no danger of explosion 4 • Call for needed fire fighting equipment • Alert medical and ambulance services as deemed necessary • Notify law enforcement agencies to assist with securing the area and aiding any evacuations as needed • Make arrangements for continuous water supply if needed • Develop containment and clean-up plans • Order necessary safety equipment • Order mud materials and mixing eauioment 6 • Lay kill lines from a safe location • Mix mud if required • Cooperate with professional well control specialists • Once controlled, install appropriate wellhead equipment 0 • Refer to the Agency Notifications section for reporting requirements and contact information Page 15 of 31 OiI and Produced Water Spills OiI Spills All action should be designed to protect human life and control the spill as rapidly as possible. On Inland Water If a spill reaches an inland waterway, the Production Supervisor shall immediately notify appropriate state and federal agencies. The employee and/or Production Supervisor will furnish their best estimate of the following information concerning the spill. A. Location of the spill. B. Source and type of oil spilled. C. Is the source of the spill controlled? D. Area covered and approximate volume. E. Direction and speed of movement of spill. F. Currents (if applicable). G. Estimate of the area likely to be affected. H. Other action taken. I. The Incident Commander or his/her designated representative shall keep a daily log of response activities. The log book shall be bound, not loose leaf. Entries shall be dated, time and signed. Produced Water Spills In the event of a produced water spill from a producing well, test vessel, tanks, flow line or any other related oil field equipment, action should be taken to shut off the source and contain the spill as rapidly as possible. May 15, 2007 Page 16 of 31 Discove Report Emergency Take Immediate Response Actions .Phig I I@® @p®TebE§ ContinueResponse Determine Potential for Impact of Sensitive Areas Decon / Demobilization May 15, 2007 • Report the spill to the Production Supervisor • Production Supervisor to notify proper Federal/State authorities • Refer to the Agency Notification section for reporting requirements and contact information • Conduct hazard assessment • Develop site safety plan prior to entry • Analyze spill type to determine immediate actions to shut off source • Stop discharge if safe to do so • Construct containment barrier downstream of spill • Use sorbent material to minimize spread II • Call for vacuum truck and other response equipment if practical • Eliminate sources of ignition to prevent fire/explosion • Restrict entry into affected area to those involved in the cleanup operations 4 • Assess spill size and volume • Perform surveillance • If no threat exists, continue current response • If threat exists, employ protection methods Develop decontamination and disposal plans prior to conducting operations in area where a potential for exposure to hazardous substances exists Develop demobilization plan prior to ceasing operations Page 17 of 31 Gas Release Gas leaks and gas line breaks shall be reported in the same manner as oil spills. Venting of gas from tanks, pressure relief valves, etc. is not reportable under this section. However, these types of releases may be reportable under Federal regulations (CERCLA/SARA) or under the State Air Quality Agency regulations. Assess Severity Protect Yourself and Others in the Area Reassess the Situation Ph®f@® ©13D@NOora @M 205c @ Row@NuR 1 • If you can do so safely, stop the leak and notify your supervisor • Evacuate yourself and others to a safe location • Eliminated potential ignition sources • Notify supervisor of the situation • If it is now safe for onsite personnel to initiate actions to control the incident and fuel source then do so • If it is not safe to take action, remain in a safe location and wait for external response Assess Severity May 15, 2007 • Refer to the Agency Notification section for reporting requirements and contact information Page 18 of 31 Terrorist/Bomb Threat Bomb Threat Information Sheet Remain Calm Gather as Much Information as Possible Notifications Secure the Threatened Area CERT Report May 15, 2007 PWEIM ©- ° ptib �c TTC,If A Thh®E'RAVigh@TR II • Remain calm and try to keep the individual on the line I • Use the HBomb Threat Information SheetH to record as much information about the caller as possible II •Notify supervisor of the situation • Notify Law enforcement 4 • Remove personnel from threatened area until the treat subsides II• Call the CERT Team to notify them of the threat Page 19 of 31 Marathon Employee Injury / Illness Incident Reporting Form aQaion IIM® 7 (EcuTyyfiHNigAo®@EaE Marathon Employee Injured or III Employee's Supervisor or PIC • Notify your supervisor as soon as possible but no later than 24 hours after the incident. • Obtain a "Work Related Incident Packet" from your supervisor. • If able, complete Section I of the Management • If other than an emergency, contact MAPLine (877-627-5463) before the employee is taken for medical treatment. • Contact Axiom (877-502-9466) case management services for all work related injuries and Illnesses regaurdless of severity. • Ensure employee has a "Work Related Incident Packet" • If one or more employees are hospitalized or if there is a fatality, contact HES immediately. • Complete Section II of OI&1 Form and return to HES within 3 calendar days of the incident. • Obtain Witness Summaries. • Complete additional incident investigation as needed. • Send "Release of Medical Information" and the "Physical Capacities Physician's Report" forms to Health Services or HR, as applicable. • Send witness summaries to HES Department. May 15, 2007 v • Complete Section IV of the OI&I From. • As needed, make CERT notification. HES Department • Complete Section II of OI&1 Form. • Notify Health Services or other case manager, as needed, to assist with medical management. • Assist with Incident Investigation, as needed. • Send OI&1 Form to Houston within 7 calendar days of incident. NOTE. If incident is OSHA recordable, ensure it is posted to log within 7 calendar days. • Provide a copy of OI&I report to the HR manager. Page 20 of 31 Contractor Injury / Illness Incident Reporting Form Cgo ffEg T C Eioll®9 @ [igE kl@M R@Vg@h@l7R Contractor Worker Injured or III I Employee's Supervisor or PIC • Ensure contractor receives needed medical assistance. Request contract company representative accompany injured / ill person to medical facility. • Call MAPLine (877-627-5463) to report the incident. • Contact Axiom (877-502-9466) case management servic€s immediately, regardless of severity. • If one or more contractor amnlnvaac aro hnenifali,orl nr if there is a fatality, contact HES immediately. • Complete Section II of OI&I Form and return to HES within 3 calendar days of the incident. • Obtain Witness Summaries • Complete additional incident investigation as needed. • Send witness summaries to HES Department • Notify the MOC supervisor as soon as possible but no later than 24 hours after the incident. • If able, complete Section I of the Occupational Injury an Illness (OI&I) Report Form. Management v • Complete Section IV of the OI&I From. • As needed, make CERT notification. May 15, 2007 HES Department • Complete Section II of OI&I Form. • Send OI&I Form to Houston within 7 calendar days of incident. • Assist with Incident Investigation as needed. Page 21 of 31 ICS Section ICS Roles & Responsibilities The roles and responsibilities are described on Marathon's CERT Reference Manual. They are to be referenced as a tool to help facilitate each respondent in performing his/her role as an Incident Command System team member. Detailed responsibility descriptions and checklists for each role can also be found in the CERT Reference Manual. TIER I EMERGENCY RESPONSE TEAM Incident Commander Envir./ Safety Section Operations Section May 15, 2007 Planning Section Situation Unit Logistics Section Finance Section Page 22 of 31 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Piceance Production Area ICS Structure Grand Junction Office 970-245-5233 * designates primary leader May 15, 2007 TIER II Page 23 of 31 Incident Commander — Ext. 2222 * Bob Coleman (970) 245 5233 2222 - (970) 640 8093 Curtis Ryland Operations Section * Curtis Ryland (970) 245 5233 2230 — Ext. 2230 (970) 245 5233 2230 (970) (970) 640 640 4851 4851 Bob Lopez (970) 245 5233 2235 (970) 712 1603 Dan Stamness Planning Section * Eric Ward (970) 245 5233 — Ext. 2225 (970) 245 5233 2240 2235 (307) (713) 272 248 6350 1354 Jim Tomlinson (970) 245 5233 2227 (970) 778 1084 Craig Donham (970) 245 5233 2229 (970) 640 0385 Logistics Section — Ext. 2241 * Cindie Watts (970) 245 5233 2241 (970) 640 4648 Robin Popp (970) 245 5233 2234 Safety/Environmental — Ext. 2223 * Rich Connell (970) 245 5233 2223 (970) (281) 640 536 2810 9258 Adel! Heneghan Heneghan (970) 245 5233 2243 (970) 210-9340 Public Affairs — Ext. 2228 * Dave Barker (970) 245 5233 2228 (970) 640 3082 Tom Lanam (970) 245 5233 2242 (970) 712 0057 * designates primary leader May 15, 2007 TIER II Page 23 of 31 TIER III 7=717 tf5it Tmn In the event of a medium to large-scale incident, Emergency Strike Team (EST) members will arrive with intentions of first integrating Into the local ERT, then migrating to this organization structure. 1 70 e=. °=. controlled project. The three phases of response management are May 15, 2007 Response Managem ent System (RMS) Purpose RMS is a project managemen t system ■ which facilitates taking command of an emergency event when response is initiated and turning the event into a shown below: Page 25 of 31 3 Phases of Response Management Phase III Long Range Planning Phase I Response Initiation I I 1 Assessment Meetings > I DIAT General Plan General Plan meeting Development Meeting Approval Meeting Command Staff Meeting Phase II Daily Planning I -I Tactical Planning Briefing :Meeting fleeting Meeting Repeat Daily LEVELS OF RESPONSE Marathon has established levels of response which require the establishment of an ICS team. Each level should respond by implementing the three phases of Response Management when appropriate. A description of the levels of response is listed below: • Level I — A response defined as an emergency that can be reasonably addressed by the United States Production Unit area office in which the incident occurs. The Level I response is one that can be resolved in approximately one day or less. The Area Superintendent, with guidance from management and Marathon HES Department, will determine when an incident exceeds the capability of his/her area of responsibility. • Level II — A response defined as an emergency that exceeds the capability of the Area Office in which the incident occurs. The Corporate Emergency Response Team (CERT) will serve as the ICS team with assistance from the Business Unit. • Level 111 — A response defined as a major emergency that requires the Corporate Emergency Response Team (CERT) with assistance from the Business Unit. May 15, 2007 Page 26 of 31 Debrief (Critique of Incident) A critique of the incident shall be held as soon as possible following termination of the incident. The purpose of this critique is not to find fault or place blame for any actions taken during the emergency, but rather to identify effective/non-effective methods of incident mitigation and to encourage analytical and logical thought processes for the control of future incidents. This also serves as a mechanism to recognize the need for additional equipment availability and distribution. May 15, 2007 Page 27 of 31 Agency Notifications and Reporting Requirements Federal National Response Center (800) 424-8802 Local: (202) 267-2675 Fax: (202) 267-2165 Spills creating a sheen on navigable waters require immediate reporting to the U.S. Coast Guard's National Response Center, (800) 424-8802. National Response Center Reporting Checklist Online Reporting Forms click here United States Environmental Protection Agency — Region 8 (Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming and 27 Tribal Nations) 999 -18th Street, Suite 300 Denver, CO 80202-2466 Phone: (303) 312-6312 Phone: (800) 227-8917 (Region 8 States Only) Region 8 Emergency Response Spill Report Hotline: (800) 227-8914 Federal On -Scene Coordinator (Martha Wolf): (303) 312-6839 United States Army Corp of Engineers Omaha District 12565 West Center Road Omaha, NE 68144 or P.O. Box 2870 Portland, OR 97208-2870 General Questions: (503) 808-3710 Emergency Response Team: (503) 808-3901 Fax: (505) 342-3179 Website — http//www.USACE.ARMY.MIL OSHA U.S. Emergency Number: (800) 321-6742 Regional Office: 720-264-6550 Fax: 720-264-6585 Poison Control: (800) 222-1222 May 15, 2007 Page 28 of 31 State Colorado Oil and Gas Conservation Commission (COGCC) Parachute: 970-285-0232 Denver: 303-894-2100 Denver: 888-235-1101 Denver: 303-894-2109 (fax) Any spill affecting waters of the State must be reported both to the Colorado Department of Public Health & Environment (CDPHE) and the Colorado Oil & Gas Conservation Commission (COGCC) as soon as practical after discovery, with written notification to be provided within five days. Any spill impacting residences, occupied structures, livestock, or public byways must be reported to the COGCC as soon as practical after discovery. Any spill of 5 bbls or more must be reported in writing to the COGCC within 10 days, using Form -19. Any spill of 20 bbls or more to land (including lined dikes) must be verbally reported within 24 hours to the Colorado Oil & Gas Conservation Commission (COGCC). Colorado Department of Public Health and Environment Denver: 877-518-5608 (24 hr. spill hotline) Denver: 303-759-5355 (fax) West Slope Regional Office 222 S. 6th St., Room 232 Grand Junction, CO 81501 (970) 248-7150 Any spill affecting waters of the State must be reported both to the Colorado Department of Public Health & Environment (CDPHE) and the Colorado Oil & Gas Conservation Commission (COGCC) as soon as practical after discovery, with written notification to be provided within five days. Colorado Division of Wildlife Grand Junction: 970-255-6100 For any spill resulting in the injury or death of fish or wildlife, contact the Colorado Division of Wildlife and the US Fish & Wildlife Service. May 15, 2007 Page 29 of 31 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Piceance Emergency Phone Numbers Garfield County Sheriff: 911 for Emergency 970 945-0453 for non -emergency Eagle County Sheriff: 911 for Emergency 970 479-2200 for non -emergency Colorado State Patrol: 970 824-6501 Highway Emergency Number: 1-800 442-9090 May 15, 2007 Page 31 of 31 Police Grand Junction 911 Or (970) 242-6707 for non -emergency Parachute 911 Or (970) 285-7630 for non -emergency Rifle 911 Or (970) 625-8095 for non -emergency Meeker 911 Or (970) 878-5555 for non -emergency De Beque 911 Or (970) 283-5531 Fire Grand Junction 911 Or (970) 244-1400 for non -emergency Parachute 911 Or (970) 625-8095 for non -emergency Rifle 911 Or (970) 625-1220 for non -emergency Meeker 911 De Beque 911 Or (970) 283-8632 Ambulance Grand Junction 911 Parachute 911 Or (970) 984-3605 Rifle 911 Or (970) 984-3605 Meeker 911 De Beque 911 Hospitals Grand Junction (970) 244-2273 Parachute (970) 625-1510 Rifle (970) 625-1510 Meeker (970) 878 5047 Gleenwood Springs (970) 947-8819 Garfield County Sheriff: 911 for Emergency 970 945-0453 for non -emergency Eagle County Sheriff: 911 for Emergency 970 479-2200 for non -emergency Colorado State Patrol: 970 824-6501 Highway Emergency Number: 1-800 442-9090 May 15, 2007 Page 31 of 31