HomeMy WebLinkAbout2.0 BOCC Staff Report 11.06.1995REOUEST:
BOCC 11/6/95
PROJECT INFORMATION AND STAFF COMMENTS
A Special Use Permit to allow the construction
and operation of a produced water evaporation
pit.
APPLICANT: Snyder Oil Corporation (SOCO)
LOCATION:
A portion of land located in Section 26, T6S
R93W of the 6th P.M.; approximately three
(3) miles southeast of Rifle; east of CR 319.
SITE DATA: 8.517 Acres
WATER: Will not be used
SEWER: Will not be used
ACCESS: Direct access to CR 319
EXISTING/ADJACENT ZONING: A/R/RD
I. RELATIONSHIP TO THE COMPREHENSIVE PLAN
The subject property is located in District B - Subdivisions/Rural Serviceable Areas, Minor
Environmental Constraints as designated by the Garfield County Comprehensive Plan's
Management Districts Map.
11. DESCRIPTION OFTIIE PROPOSAL
A. Site Description: The property is located approximately three (3) miles southeast of
Rifle, immediately east of CR 319 in a wide valley, which slopes gently -upward
(approximately 6%) to the south. Sage and native, annual grasses are the
predominant vegetation types on the property and the adjacent slopes are dominated
by juniper. An on-site investigation, as well as sone maps of the area, have indicated
an unimproved, dirt road which access the northeastern corner of the property to
be used. See vicinity map on page
B. Adjacent Land Uses: The area surrounding the proposal is dominantly range land.
It is assumed the property is used as grazing land; however, no direct evidence of this
was observed during the on-site survey conducted by staff. It appears that a single
family residence is located approximately 1500 lineal feet northwest of the property.
C. Proposal: The water evaporation pit is intended to serve as a collection point for
water produced from the 34 natural gas wells SOCO presently has in the area.
Currently, SOCO produces between 150 and 200 barrels ( 1 barrel is the equivalent
of 42 gallons) of water, per day, which is trucked to a water disposal facility in
Debeque. SOCO believes that this proposal would allow for increased efficiency and
cost savings, as well as significant reductions in traffic in the near- and long-term, as
the distance this material must be transported will be greatly diminished. The
applicant believes the useful life of this facility may be in the range of 20 to 30 years.
1
D. Consttuction/Operation: The facility, as designed, will consist of a 10 foot deep pit,
200 feet wide, 400 feet long, with a capacity of 93,464 barrels and lined with a 40 mil
thick liner. Two (2) 400 barrel water tanks are designed to provide secondary
skimming of the water in an effort to remove any remaining hydrocarbons prior to the
water being released into the evaporation pit. Evaporation from the pit will occur
directly from the water surface and will be aided by the 24 sprinkler heads which will
be ins lied along the rim of the pit. See the evaporation facility diagram, page
1d .
Evaporation calculations have been presented, assuming the aeration system will
operate 12 hours per day, four (4) months f the year (summer). Estimated
evaporation calculations are shown on page . It would appear, from these
calculations, evaporation will be a minimum o approximately 79,198 barrels, per
year, when operated in the manner supported by these calculations. The applicant
assumes that the actual operation of the aeration system will occur whenever
additional evaporation can be aided by the weather, which should increase the amount
of evaporation from the pit.
1i1. MAJOR ISSUES AND CONCERNS
A. Agreement Between Parties: A completed Surface Lease Agreement between the
applicant (Les ) and the owner of the sutface land (Lessor) has been submitted with
this application and is attached on pages ® Staff recommends that the
County adopt a position that any approved operati n of this proposed facility shall
strictly adhere to the provisions of the Agreement.
B. Zoning: The subject property is within the A/R/RD zone district which does support,
through the issuance of a Special Use Permit, the proposed, intended use of the
property as a site for extraction, processing, storage or material handling of natural
resources.
C. Legal Access: Legal access exists from CR 319 over an easement which is .granted
within the Surface Lease Agreement, see item #3 (Roadway).
D. Water: No water is proposed to be used in the construction or operation of this
facility. However, produced water will be trucked to the site in accordance with the
above mentioned criteria. An attached water analysis typical for the water which will
be brought to the site, is attached on page / . It appears that Sodium,
Calcium, Chloride, Sulfate, Carbonate and Bicarbon<te are the majority constituents
of this water. According to the applicant's engineer, these ions will settle -out as
precipitates in the water tanks, which will be cleaned annually, and should not
accumulate to an appreciable degree within the evaporation pit.
Pursuant to Section 9.03.05 (Periodic Review) of the County Zoning Resolution, staff
recommends an annual water chemistry analysis of water taken from within the pit,
to be performed at a time when feasible to do so and at the expense of the
applicant/operator, with the analysis forwarded to the Planning Department. If this
analysis indicates hazardous or toxic levels of hydrocarbons, other compounds or
minerals, as specified by federal, state or local authorities, then the applicant/operator
will be required to submit an additional Special Use Permit application, along with the
appropriate fees, to address and mitigate the potential hazard(s).
E. State and Local Health Standards: It appears, from representations made by the
applicant that no state or local health standards are applicable. An attached letter,
pages ® 0 , indicates the mechanical components of this proposal are exempt
from permitting, per Colorado Department of Public Health and Environment. It
appears that the State Oil and Gas Conservation Commission (OGCC) regulates this
type of proposal; however due to their (OGCC) determination that this operation will
not be conducted in a "sensitive" area, no permits are required. A copy of the Sundry
Notice submitted to the OGCC as well as a concise narrative of the evaporation pit
process is attached on pages
2-
F. Drainage: Staff has conducted an on-site investigation and it appears that drainage
should not be an issue. An existing, perennial drainage exists on the southeastern
corner of the land proposed to be used (see evaporation facility diagram, page
and staff would recommend that, if any construction occurs in this area,
mingational steps be taken to ensure that no erosion occurs due to the disturbance of
vegetation.
G. Fire Protection: The application contains a section addressing fire control measures
which appear to be sufficient to control or contain a fire which may occur during
construction at the site, see Fire Control Measures on page 2.3 . Section
5.03.09 (5) (A) of the Zoning Resolution specifies that the applicant adopt policies
provided under the National Fire Code to address any potential fire hazards which
may occur due to the storage of any flammable items on-site.
H. Soils: The Soil Conservation Service identifies the soils on-site as being in the Arvada
loam class, typically deep, well -drained, with very slow permeability. The SCS has
further defined these soils as having a severe shrink -swell potential. Staff
recommends that construction of all facilities be done in a way to mitigate this
potential, especially in the construction of the evaporation pit.
Wildlife Considerations: Wildlife migration or use patterns are not known for this
area. The BLM and the DOW have been notified, but no response from DOW has
been received, to date. BLM replied verbally stating they had no major objections.
J. Traffic: The applicant expects traffic to increase during the time of construction,
slated to last approximately two (2) weeks. Once operational, it is assumed the site
will generate approximately two (2) or three (3) round -trips per 24 hour period.
K. Site Rehabilitation: The applicant has specified that, upon completion of
construction, the facility will be landscaped to shield it from travelers on CR 319. The
applicant has no specific design, at this time, but plans to install appropriate plants
that would offer year-round visual amenities. Staff recommends that the applicant
consult with local horticulturists or other authorities as to the plants best suited for
this specific site and further consult as to their care to ensure longevity. It should be
understood that maintenance and watering of these plants may be required for the life
of this facility.
The applicant has submitted a reclamation plan that addresses site reclamation when
the facility is to be taken ut of operation. See Landscaping and Reclamation Plans
attached on page 2 . It appears that the specifications of the plan are
adequate to reclaim the site. Section 5.03.07 (2) (B) of the County Zoning
Resolution gives the Board discretion in "requiring security for site rehabilitation, in
the form of a bank commitment of credit, bond, certified check or other security...in
the amount to secure the execution of the site rehabilitation plan." Item #13 of the
Surface ice Lease Agreement (page 13 ) provides that the Lessee (applicant) shall
maintain a bond of $50,000 for the term of the lease, for purposes of site
rehabilitation, for the benefit of the Lessor. Staff recommends that the County hold
this bond jointly with the Lessor, as co -beneficiary, in an effort to guarantee the
rehabilitation of the site.
Staff suggests that the Board attempt to make a determination as to the adequacy of
this monetary amount ($50,000) to completely rehabilitate the site. If this amount is
found to be inadequate, the Board has the discretion to request additional finds, in
one of the forms listed above, be committed to the rehabilitation of the site.
L. Subdivision The Colorado Revised Statutes definition of subdivision is as follows:
"Subdivision" or "subdivided land" means any parcel of land in the state which
is used for condominiums, apartments, or any other multiple -dwelling units,
unless such land when previously subdivided was accompanied by a filing
which complied with the provisions of this part 1 with substantially the same
density, or which is divided into two or more parcels, separate interests, or
interests in common, unless exempted under paragraph (b), (c), or (d) of this
subsection (10). As used in this section, interests includes any and all
interests in the surface of land but excludes any and all subsurface interests.
The applicant has entered into a lease agreement with the property owner for two
years (minimum), but it may be renewed every two years for up to a total of up to
thirty years. It is staff's opinion that the Tong -term nature of the lease creates a
"separate interest" in the land and that it should be either subdivided off of the
property or the interest is increased to a 35 acre tract that is legally separated from the
property by the recording of a deed in the County Clerk and Recorders Office, for the
35 acre tract.
IV. SUGGESTED FINDINGS
That proper posting and public notice was provided as required for the hearing before
the Board of County Commissioners.
That the hearing before the Board of County Commissioners was extensive and
complete, that all pertinent facts, matters and issues were submitted and that all
interested parties were heard at that hearing.
That the application is in compliance with the Garfield County Zoning Resolution of
1978, as amended.
4 That for the above stated and other reasons, the proposed Special Use Permit is in the
best interest of the health, safety, morals, convenience, order, prosperity and welfare
of the citizens of Garfield County.
?.
V. RECOMMENDATION
Staff recommends APPROVAL of the application, subject to the following conditions:
1. That all representations of the applicant, either within the application or stated at the
hearing before the Board of County Commissioners, shall be considered conditions
of approval.
That the operation of the facility be done in accordance with any federal, state or local
regulations governing the operation of this type of facility.
3. That the operation of this facility be in accordance with the provisions allowed within
the Surface Lease Agreement signed by the applicant (Lessee) and the land owner
(Lessor).
4. The applicant comply with the provisions of the National Fire Code as the Code
pertains to the operation of this type of facility.
5. The construction of the facility, specifically the evaporation pit, be done in a manner
to mitigate any problems which may occur due to the possible shrinking or swelling
of the soils on-site.
The issuance of this Special Use Permit is subject to an annual review of the water
chemistry of the water contained within the evaporation pit, at such time when fi-ee-
standing water is within the pit. This analysis will be presented to the Planning
Department on the first day of July, 1996, and every July I thereafter, for the duration
of the operation. The analysis of this water will be at the sole cost of the
applicant/owner. If this water is determined, through this analysis, to be hazardous
or toxic, based on applicable standards, then the applicant/operator is required to
submit an additional Special Use Permit application, with appropriate fees, to address
and mitigate the potential hazard(s).
The County reserves the right to retain outside expertise, at the expense of the
applicant/operator of' the facility, in an effort to conduct tests or analyses of the
physical nature, water chemistry or groundwater properties on and away from the site.
8. A sufficient monetary security, determined by the Board of County Commissioners,
to ensure rehabilitation of the site once operation has ceased, shall be provided to the
County by the applicant.
9. That the proposed lease parcel is subdivided from the parent parcel either by the
appropriate action of the Board of County Commissioners or the recording of a deed
of at least 35 acres of land surrounding the leased area, in the name of the applicant.
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LOCATED IN THE SW'/ NE'/ OF SECTION 26 - TOWNSHIP 6 SOUTH - RANGE 93 WEST, 61h P.M. GARFIELD COUNTY, COLORAI
530'
- 12' WIDE ACCESS ROAD
UNLOADING AREA
BERM
4.1
(2)400 BBL.
WATER TAMS
with 3' high
earlben berm
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3' . 20'
1,II0PANE TAW(
SPRINKLER SYSTEM
( 24 SPRINKLERS ) \
BASE
EXI NG DppINA
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CENTER
NEY. of SECTION 2
T 6 S - R 93 W
140'
EARTHEN BERM
5' nigh
42' wide al base
12' wide at top
530'
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SPRINKLERS Skid mounted
5' x 10' x 5' high
co
8 HP Engine and Pump
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LINE OF CROSS SECTION
_ _ WATER
k1101A TANKS
200' X 400' X 10' DEEP
EVAPORATION PIT
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LINED AND NETTED
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93,464 BBL. CAPACITY
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SOCO EVAPORATION FACILITY
Evaporation/Aeration Calculations
Evaporation
Assumptions
1) 45" evaporation per year
2) 200' x 400' pit
3) 3':1' sloping sides
Calculations
47,217 Bbls per year
Aeration
Assumptions
1) Average temp 85" F
2) Average humidity 10%
3) Average wind speed 12 mph
4) Above conditions exist 4 months out of the year
5) Rain Bird 20 Al -I 7" 1/8" nozzle
6) 50 psi at nozzle
7) 24 sprinkler heads
8) 12 hours per day operation
Calculations
31,981 Bbls per year
2510-1.1(1155VPWOCS,W(llll,:,,.I. • S\LVAPuI(,51 W191
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ILL 1_11. 1 27 i
SURFACE LEASE AGREEMENT
A. PARTIES
115 :3 5 11':' .003 P . 0 2
The parties to this Agreement are BENZOL LIVESTOCK COMPANY, a Colorado
partnership, (Lessor), and SNYDER OIL CORPORATION, a corporation authorized to do business
in the State of Colorado, (Lessee).
13. RECITALS
The reason and purpose for entering into this Agreement is premised upon the following:
1. Lessor is the owner of a tract of land located in the County of Garfield and
State of Colorado which Lessee believes is suitable for its use for the purposes hereinaller set forth.
2. Lessee is in the business of the extraction and distribution of oil, gas and
petroleum products. Lessee desires to construct upon the land of Lessor one or more evaporation
pits and to use other portions of the Lessor's property for storage for incidental spare equipment to
be used in the ongoing operations of Lessor.
The parties agree as follows:
follows:
C. AGREEMENT
1. Recitals True and Correct. Tho recitals set forth herein are true and correct.
2. Premises. • Lessor hereby leases to Lessee the real property described as
Beginning at a point in the NE'/+ of Section 26, Township 6 South,
Range 93 West, 6th P.M. which bears S. 44°53'54" W. 184 I. 48 feet
from the Northeast Corner of said Section 26; thence S. 00°32'00" W.
700.00 feet; thence N. 89°28'00" W. 530.00 feet; thence N. 00°32'00"
E. 700.00 feet; thence S. 89°28'00" E. 530.00 feet to the point of
beginning. Basis of bearings is the East line of the NE'/, of said
Section 26, Township 6 South, Range 93 West, 6th P.M. which is
assumed from G.L.O. information to hear North. Contains 8.517
acres more or less.
3. Roadway. Included with the lease of the demised premises described itt
paragraph C.2 above, Lessee shall be entitled to the use of an access road twelve (12) feet in width
Surface Lease Agreement
&'nzel Livestock Comparty/S'ryder 011 Co:porvton Page 1 of 7
-/ 0 - 0
extending from the county road now located westerly of the demised premises to the demised
premises, the northerly boundary of which shall be at nil points ninety (90) feet southerly of the
northerly boundary of said Section 26. The roadway shall be constructed at the sole cost and expense
of the Lessee in conformity with the following:
(a) A cattle guard shall be instttlled at the westerly end of the roadway just
prior to its intersection with the county road.
Lessee.
(b) The surface shall be gravel or asphalt at the option of Lessee.
(c) The roadway shall be m intained at the sole cost and expense of
4.
Use of Premises. Lessee shall have the right to use the demised premises
primarily for the construction of one (I) or more evaporation pits approximately two hundred fifty
(250) feet square, four (4) to ten (10) feet deep, with a three (3) to four (4) foot earthen berm
surrounding each pit. Each pit will be lined with imperineable plastic and covered with netting to
protect fowl. Lessee may also use the demised premises as an ancillary use for storage purposes of
equipment, materials, supplies and a storage tank for the storage of liquid hydrocarbons, together
with piping lines and other facilities necessary for its operation.
5. Tern. The term of this lease shall commence on date of execution hereof and
shall extend for a period of two (2) years and ao long ti,ereafter as Lessee continues to utilize the
demised premises for the purposes herein stated and otherwise complies with all of the terms and
conditions of this Lease.
following:
6. Rental. Lessee shall pay to Les:tor as rental for the demised premises the
(a) For the period November 6, 1995 through November 5, 1997, Two
Thousand Four Hundred Dollars ($2,400.00) per year.
(b) For the annual periods L.ommencing November 6, 1997 through
November 5, 1999, Three Thousand Six hundred Dollars ($3,600.00) per year.
(c) For the annual periods commencing November 6, 1999 through
November 5, 2001, Four Thousand Eight hundred Dollars ($4,800.00) per year.
(d) For each annual period commencing November 6, 2002 and thereafter,
Six Thousand Dollars ($6,000.00) per year.
Lessee shall pay to Lessor the first two (2) year rent in advance, receipt of which is hereby confessed
and acknowledged.
Surface Lease Agreement
Dense! Livestock Compa,nv;S,ryderOil Corpornllon Pc4Re.2ufi
LLI• UIL
LLJ 1 .. l .J _ _ - I 1 I_I i_ 1. 1 V • J U I'I U . V l! J f- .
7, Permits paid lAtftsvc Lazet3 shall obtain from all local and athta
governments having jurisdiction In the pretnlsma all permits, and licenses necesaa.ry to operate the
premises, The use ofthe leased promises shall not commence until Cutch time as all such permits and
Uoenacs have been obtained, Lees= shrill not use the demised vitamins or permit anything to be done
in or about the promises which will in arty way conflict with any law, state ordinance or government
rule ar regulation which may b® hereinafter ensioted or promulgated by any entity having Jurisdiction,
8. Coanpllanoe With Um: Lems shall, at Lowe's Rolm oost and expense,
promptly comply with all !awe, statutes, nrdlnancea or governmental rules, regulations or
requirements now In force or which may httm.ftar be In force relating to or affecting the condition,
use or occupancy of the prsmisea. The judo/lent of any court of competent jurisdiction or the
admission of Lessee In arty action against L'.'•:ace, whether Leeaor be a party thereto or not, that
Loaseo has violatsnd any law, atatutd, ordinance or govvrnmontAi rule, regulation or requirement, shall
be conclusive of the fact as between Lessor and Lame, Lame shall keep the 'premises fres and clear
from any Uwe arising from any work perfbrmad, mattriala fllrttished or obligations incurred by
Lessee. If Ls.ate shall be In deflault in paying arty ohargia for which a mechanic's !!en claim or suit
to foreclose a liars has been recorded or filed., Lessor may ;,but without being required to do so) pray
acid lien or claim and any co313. The amounts PO paid, together with reasonable attorney's fees
incurred in connection therewith, shall be immediately due and owing ft•om Lt+asase to Lnssclr with
interest at the rate of eighteen pro= (16%) per annum floor data of Lessor' s payments. Should any
claim or lien be flied or recorded against the leased property, or any action affecting title thereto be
commenced, Lessee shall give Lessor writtart notice thereof as soon as it has knowledge thereof.
Lessor shall have the right to demand lien waivers from all contractors, subcontractors and
matarialrntsn working en the premises,
9. No Asaignnterat, I..®ss®e Shall not assign, transfer, mortgage, hypothecate,
pledge or cncumbcr this Lease or any interest therein and shall not sublet the same or any part
thereof, or any right or privilege appurtenant thereto, or Luffbr any other porson (the employes,
agents, servants and iltviteca of Laws sexoatttad) to occupy nr use the premises or any portion thereof
without the written consent of Lessor being lira* obtained, Any such assignment or sublet:Ing without
such consent shall be void and shall, at the option of Lessor, constitute a default under 'alb! Lena.
IL®®mox ° a concent shall out 114 unrnraepvth1y withbelst.
10, Insurance. Lee shall, at Lestes'a expen€ae, obtain and keep ili lorco during
the entire period that this Lease remains in eftbot, a policy or policies of public liability insurance
insuring Lessee against liability for personal irpury and property damage arising out of the use,
occupancy or maintcmauco of the prenllats, The limits of oovcraic under such 11181.0111 ;;,C shall not,
however, limit Lessee's liability to Laaor under other provisions of this 1,5 140. Said insk.;,nce carried
by Lessee shall have Lessor's proteetive liability endorsements them. Lessor may, but shall not be
obligated to, obtain such insuranot IfLasaaa shall fail to procure and maintain the same, but any such
insurance obtained by Lessor shall by at the expense of Lessee, Insurance required 1ts1 sunder shall
be at minimum in the amount of One Dollars ($1,000,000) per person, One Million Dollars
($1,000,000) per occurrence, and One Ilrfllllon Dollars ($1,000,000) property damage. Such policy
shill provide fbr tem (10) days prior written notice to Lessor of lapse, canoellation or reduction of
&Ow, ai A rVr,wi ti
Banal Ltvaraleuk CompazovS'nytitcr Or! Corporotion Poge J of 7
In - n¢ r.., .n-
coverage for any reason whatsoever. Lessee shall deliver to Lessor prior to occupancy of the
premises copies of policies of liability insurance required hereunder or certificates evidencing the
existence and amount of such insurance with Lessor named as an additional named insured.
11. Inspection. Lessor reserves and shall at and all times have the right to enter
the premises to inspect the same.
12. Indemnity of Lcssce. Except for any claims arising out of or due to acts or
omissions of Lessor, Lessee shall indemnify and hold Lessor harmless against and from all claims
arising from Lessee's use of the premises or (Tom any activity, work or other thing done permitted
or suffered by Lessee in or about the premises. Lessee shall further indemnify and hold Lessor
harmless against and from any all claims arising from any breach or default in the performance of any
obligation on Lessee's part to be performed under the terms of this Lease, or arising from any act or
negligence of Lessee or any officer, agent, employee, guest or invitee of Lessee, and from all and
against all costs, attorney's fees, expenses and liabilities incurred in or about such claim or action or
proceeding brought thereon. In any case, upon notice from Lessor, Lessee shall defend the same at
Lessee's expense by counsel chosen by Lessee. Lessee, as material part of' the consideration. to
Lessor, hereby assumes all risk of damage to properly or injury to persons in or about the leased
premises from any cause other than Lessor's negligence, acts or omissions. Lessee hereby waives
all claims in respect thereof against Lessor. Lessor or its agents shall not bo liablo for any damage
to property entrusted to employees of Lessee, nor from loss or damage to any property by theft or
otherwise, nor from any injury to or damage to persons or property resulting from fire, explosion
water or rain which may leak from the premises. It is specifically understood and agreed that the
indemnity herein contained shall include any and all forms of hazardous waste which may be brought
upon, allowed to escape from or emanate in any fashion from the premises.
13. Termination of Lease. Upon termination of this Lease, Lessee shall remove
all structures, pipes, tanks and other equipment, materials and supplies placed upon the premises and
shall restore the surface to a condition as nearly as possible as existed prior to the execution of this
Lease, including revegetation. The restoration and reclamation of the premises shall be completed
at the sole cost and expense of Lessee within three (3) months of the date of the termination of this
Lease. As security therefor, Lessee shall maintain during the term adds Lease a bo',J issued by an
entity or institution acceptable to Lessor and for the benefit of Lessor in the «,,:punt of Fifty
Thousand Dollars ($50,000.00). Evidence of the bond acceptable to Lessor shall be delivered to
Lessor prior to Lessee taking possession of the premises.
14. Fencing. Prior to Lessee commencing use of the evaporation pond or ponds,
Lessee shall fence the premises in a manner which will prevent livestock and third persons from
entering the premises. Entrance to the premises shall be gated in such a fashion that third parties
cannot gain entrance to the premises. Lessee shall also maintain the premises in a neat, orderly and
weed -free condition and shall landscape the same in a fashion to mitigate the view from the County
road.
Sur face Lea.re Agreement
Beare! Llveetock Company/Snyder 0!! Corporarlcvi Page 4 of 7
I L L•_ 1 .. ,AL, 1
I I_ i. r I I n . �_� u., r . b
15. Default by Lessee, The occurrence of nny one or more of the following
events shall constitute a default and breach of this Lease by Lessee:
(a) The vacating 01 abandonment oldie premises by Lessee;
(b) The failure by Lessee to make any payment of rent as and when due
where such failure shall continue for a period of fifteen (15) days after Lessor provides
written notice to Lessee of its failure to pay the rent. Such notice shall be sent to Lessee in
the manner provided in paragraph C.18 hereafter. In the event rental is not paid within a
period of five (5) days after the due date, Lessee shall pay a penalty of five percent (5%) of
the annual rental in addition to all other rental due and payable hereunder.
(c) The failure by Lessee to observe or perforin any of the covenants,
conditions or provisions of this Lease to be observed or performed by Lessee, where such
failure shall continue for a period of thirty (30) days after written notice thereof by Lessor to
Lessee.
16. Lessor's Remedies. In the event of any default or breach by Lessee, Lessor
may at any time thereafter, with or without notice or demand and without limiting Lessor in the
exercise of any right or remedy which Lessor may have by reason of such default or breach:
(a) Terminate Lessee's right to possession of the premises by any lawful
means, in which case this Lease shall terminate and Lessee shall immediately surrender
possession of the premises to Lessor. In such event Lessor shall be entitled to recover from
Lessee all damages incurred by Lessor by reason of'Lessee's default, including but not limited
to the cost of recovering possession of the premises, expenses of reletting including necessary
renovation and alteration to the premises, reasonable attorney fees, and recourse to the benefit
of the bond posted pursuant to paragraph C.13 above.
17, Eminent Domain. If the premises shall be taken or appropriated by any public
or quasi -public authority under the power of eminent domain, this Lease shall terminate and Lessor
shall be entitled to any and all income, rent, award or any interest therein whatsoever which may be
paid or made in connection with such public or quasi -pudic use or purpose for such taking. Lessee
shall have no claim against Lessor for the value (Zany unexpired term of this Lease. If any pad of
the premises may be so taken or appropriated, Lessor shall have the right, at its option, to terminate
this Lease and shall be entitled to the entire award resulting from such taking.
18. Notices. All notices and demands which may or are to be required or
permitted to be given by either party to the other hereunder shall be in writing. All notices and
demands shall be sent by United States mail, certified, return receipt requested, postage prepaid,
addressed as follows:
Su,face Lease Agreement
13enzel Lh'estack Cornpany/Snyder 011 Corporation Page 5 of 7
Lessor: 9130 E. Saddlehorn
Sedona, AZ 86351
Lessee:
1625 Broadway, Suite 2200
Denver, CO 80202.
All notices and demands given hereunder shall be considered to be given and delivered upon deposit
in the United States mail as herein provided.
19. Binding Effect. The terns and conditions hereof shall extend to and be
binding upon the parties hereto, their successors and assigns of all kinds.
20. Memo of Lease Recorded. A short form of this Lease may be recorded by
the parties and, if recorded, Lessee covenants and agrees to record a release and quit claim deed to
the premises within thirty (30) days following the termination of the lease.
21. Quiet Possession. Lessee shall have the quiet possession of the leased
premises for the entire term hereof subject to all of the provisions of this Lease.
22. Entire Agreement. This Lease curtains all of the agreements of the parties
hereto with respect to any matter covered or mentioned in this Lease. No prior agreernents or
understandings pertaining to any such matters shall be ef1i jive for any purpose. No provision of this
Lease may be amended or added to except by an agreement in writing signed by the parties or the
respective successors in interest.
23. Attorney Fees. In the event any action or proceeding is brought by either
party against the other under this Lease, the prevailing party shall be entitled to recover all costs and
expenses, including the fees of its attorneys in such atno,ntt as the court may adjudge reasonable as
attorney's fees.
24. Sale of Premises. In the event cf any sale of the premises, Lessor shall be,
and is hereby, freed and relieved of liability under any and all of its covenants and obligations
contained in or derived flom this Lease arising out of any .,at, occur ence or omission occurring after
consummation of such sale. Upon any such sale or portion thereof containing the premises, Lessee
shall attom to the purchaser in all respects under the twins and provisions of this Lease.
25. Remedies Not Exclusive. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all oldie remedies at law or in equity.
26. Governing Law. This Lease shall be governed by the laws of the State of
Colorado.
.Sur face Lease Agreement
Benet Lh'esrork Company'/Snyder ON Corporation Page 6 of 7
.11
27. Signage. Lessee shall not place any sign upon the premises without Lessor's
prior written consent, with the exception of such signs as may be required by governmental entities
having jurisdiction.
IN WITNESS WIIEREOF, the parties hereto have set their hands and seals on the day and
year set opposite the name of each.
Date: /4-�,?�— ys—
Date:
(0(ZS��S
BENZEL LIVESTOCK COMPANY
SNYDER OIL CORPORATION
By.
41(,/vi/
Surface Lease Agreement
Bente! Livestock Coaipatt/Slryder Oil Cwporo lon Page 7 of 7
STATE OF COLORADO
CITY AND
COUNTY OF DENVER
ACKNOWLEDGEMENTS
To Surface Lease Agreement
)
) ss.
The foregoing instrument was acknowledged before me this ,2_ 't 'day of O CY-a.e' L 1995, by Mark
J. Choury. Att_. - �'- Fact of SNYDER OIL CORPORA -(ION, a Delaware corporation.
G.
WITNE' .• �� % 't` al seal.
.�,t,
•
'•- YO
OF CO�-Q'
My Cornmlsakin Explrea 1!-15-1087
Notary Puulu..
Address: 1025 Broadway, Suite 2200
Denver, Colorado 80202
i
STATE OF (2) --
) s
COUNTY OF < <te-rif..te'e-t
On this , 76,''"&y of 2 Zo.oE 1995. before me personally appeared .� e- 7 . e L
to me personally known, who, being by me duly sworn, did say that she/he is the c, ,iVF' Y•r '- of
BENZEL LIVESTOCK COMPANY, and that said instrument was signed and sealed in behalf of said
partnership by authority of the partnershlp agreement, and said acknowledged
said instrument to be the free act and deed of said partnership.
WITNESS my hand and official seal.
My Co -mission Expires:
/e2 rr
i"„1.✓II.W,.u)CS.C11JURY 4 DCWil., nir
Notary Public
•
chlumberger"')
Vernal District Laboratory
API Water Analysis Report
Report Number: 4f99E
Ci/) •
Initiated by: C. Appley Location:Rifle
Dale: 4/25/95
Please report all available information
Client: Snyder Oil Company
Field:
Treatment Via:
Well Type:Gas
Rig:
Well Name: Schaeffer 18-5
TVD:
BHP: BHST: BHCT:
Formation:Mesa Verde
Formation Type:
Height:
Hole size:
Type Completion:
Deviated Y/N Degrees:
Type Water Sample (produced, supply, etc.) Produced (tubing)
Dissolved Solids
Cations n1q/L me/L Other Properties
Sodium, Na (talc) 5789 240.9 pH 8_0.____
Calcium, Ca 400 20 SG (gm/ml) 1.007
Magnesium 0 0_._ Temperature 66 F
Barium 0_0 _ Resistivity 0.47
Anions
Chloride, CI 7,500 210
Sulfate, SO4 5 .1
Carbonate, CO3 450_ 14.9_
Bicarbonate, HCO3 2745 43.9
Total Dissolved Solids = 16.889
Iron, Fe ( tot) 12.5
Sulfide as H2S
Remarks and recommendations: None
January 1995
Rev. 0
Wale! Analysis
Vernal Disttiel Lalaialory
Vernal, Utah USA
1:711 3 Ci
Snyder Oil Corporation
1625 Broadway
Suite 2200
Denver, CO 80202
303/592-8500
Fax 303/592-8600
October 16, 1995
Mr. Eric D. McCafferty
Garfield County Building and Planning
109 8th Street, Suite 303
Glenwood Springs, Colorado 81601
RE: Special Use Permit - Evaporation Pit Facility
Dear Mr. McCafferty:
Purther to your October 3, 1995 leper to Mark Wilson at our Rifle office, the following are
responses to the nine (9) questions that you had concerning our application for the captioned
facility:
1) There will be no filters used within the separation tanks. Fired vessels and risers that promote
gravity separation and act as siphons are used for separating hydrocarbons from the oil. This
process occurs in both storage tanks at the facility.
2) During the winter time all Garfield County road regulation restrictions will be followed in
transporting water from the well sites to the evaporation facility. The evaporation calculations
that were used assumed evaporation for lour (4) summer lnon(lls. We would also run the
aeration system at the facility on any wintertime days where we felt that additional evaporation
could take place.
3) We arc working with Mr. 1.3enzel"s attorney on this and will have it to you prior to October 27,
1995.
4) The Colorado Department of Public Ilealth and Environment ("CDPI IE") Air Pollution
Control Division Regulation 3 Part A (1I) (D) (1) (a.) indicates that 1111 emissions permit will not
be required for the 8hp engine. In addition, the tank heaters are rated less than 5mmbtu/hr and
are also exempt from permitting requirements under Regulation 3 Part A (II) (D)(1) (k).
5) There will be no generator on-site. All equipment will be run with propane.
6) Attached please lied a copy of the API Water Analysis Report for the produced water from the
Shaeffer 18-5 well which is located in Section 18, T7S, R92W, Garfield County, Colorado. This
is typical of the quality of water that will be trucked to the sitc. Once at the site it will be
separated two additional times before being put in the pit.
7) VOC emissions of gas should be less than two (2) tons per year since the water trucked to this
facility is contained in atmospheric pressure tanks and any flash losses would have already
occurred back at the welisite. The storage tanks at the evaporation facility are also at
atmospheric pressure and arc less than 40,000 gallons in size. Storage tanks this size are exempt
from permitting requirements under CDP11E Air Pollution Regulation 3 Part A (II) (D) (1)
(ddd.).
8) The evaporation calculations presented are to be used as a reference. These calculations
assumed that the aeration system would run 12 hours per day for 4 months of the year. In reality,
actual operations will take place during any time when additional evaporation can be aided by
aeration. That would increase the evaporation rales that we have presented.
Another point to remember is that the p11 has storage capacity in excess of 90,000 barrels.
Therefore, if water production exceeds the evaporation rale for I year by 10,000 barrels, the pit
would be approximately 1 foot full.
The water production forecast is only an estimate . It is based on our 11/2 years of operating
experience in this area and our estimated future activity level. Both are variables. We believe
the pit will serve our needs for the foreseeable future.
9) The only information that we can gel on the pump is the information that is contained in
Exhibit "J" to our application.
Please let me know if you have additional questions.
irs very truly,
Mark J. Choury
Senior Landman
GCC On.•.
'e• a:ay
STATE Of COLOf1AUU
OIL AND GAS CONSERVATION COMMISSION
DEPAnTMENT OI NATURAL IICSO(FIICrS
SUDMI( O1(I(:INA L AND I ( (11.1.
;UNDRY NOTICES AND REPORTS ON WELLS
Jo nor use shit form for proposals lo dodeepen or to dee cn orplugback to a d(1010
se-APPLICATIONFOR PERMIT—"
for such proposals.) m reserve,.
❑OIL GOS COw La(I1
w'ELL ❑ wEE( ❑ 1NIEC TIO.c
ww MC OF Ortn•loa O111CM I=V ilp()I:atl.0 Cl Pit
SNYDER 011. CORPORATION
ADDRESS OF OPERATOR
1625 Broadway, Suite 2200
Cn1
11,l(
!Ir COOS
Denver CO 80202
LOCATION OF wELL I Rtpon lecm.en (1(
6/1• cue sp.ct 11 600.1 vl. a•W .n •tce•etnt•, .ea I Shit 1t y.•rcm, ni,
m ,e/1•t
SW/4NE/4, Sec. 26, T6S-R93W, 6th P.M.
ne p•epe•.a p w tont
11 COUNTY
Garfield
Check Appropriate Dox To Indicate N
pure of Notice, Repro( or NolifieRlion
A NOTICE OF INTENTION T0: Icy
O PLUG AND SUBSEQUENTABANDON REPORT OF:
0 FINAL rLuc ANO A I)C. NOTIFICATION OF:
O 'IULrIPLE COMPLEr1O.., IS UR HII )0.0 PARTYBANUON M[NT 0 SITUT IN TEMPORARILY ABwND01[p
F.r
O COMINGLE Loots AND 10■ (pGl CEMENT vE 0.1fICATlO `+
O FRACTURE TREAT
O AawNUON(fTL (DATE 1
SITEMOS
LOCATION NEoER DRILLED. (DATE (REQUIRED Ea'ERTR MONTIISI
O REPAIR w'ELL C RESTORED wIT111N 6 NONTIISI O PRODUCTION RESUMED
O OTHER 0 RErA1REU w[(E
O OTHER IDATE I
•Urr 1ptn ),
0 LOCATION CHANGE ISUBMIT NEw PLA TI
tt'rn Co•,,,,•e„e• Artenp4„on Repo••en/Let 0 WELL NAME CHANGE
/e• rua rertur,, •To•• al H..lrep 4 F Co...., d Cp.nP4.*.w
..../Arrn.np""n' XX OTHER Lined Evaporation Pit in
DESCRIBE PROPOSED OR COMPLETED OPERATIONS ON TIIIS FORM(Clearly
Tole al pertinent details, and give pertinentdates. including
No—ensitive Area
EonamctEmteddart starring mcd0TDell is directionally dolled, give subsurface Iotauonl and measured and true vcTUcal depths (or all mak era
and
DATE OF WORK [bon a royal of S0C0's Garfield County Special Use Permit Application, SOLO
plans to construct a lined produced water evaporation pit in accordance with COGCC Rules
)4.d.2 and 902. Attached you will find SOCO's Sensitive Arca Decision Tree Information,
a Process Description Narrative and our Carrick! County Special. Use Permit Application.
SOCO concludes that this area is Non -Sensitive.
oiintrtC( ustom,
00C ET -1
1111,111.l INDIA, OR Slwl( IIA01 No
N/A
0 PI O1•111 NO
T +'ELL NU,+BLR
10 FIELD OR wILOCwr
II QTR QTR SEC. T.0. AND 1•IENOIAM
SW/4NE/4, Sec. 26,
P6S-R93W, 6th P.M.
I hereby eenij
SIGNED
(orcgo,n
6
NAME (PRINT) Mark J. Cioury
(this space (or Federal or State o(fee 0001
APPROVED
CONDITIONS OF APPROVAL, IF ANY
LI�Cli j„
I ITLF Senior Landman
TITLE
TELEPI(ONENO 303/592-8500
DATE 10/26/95
DATE
EVAPORATION PIT PROCESS NARRATIVE
Gas, condensate and water are produced in a combined stream in the wellbore. From the
wellbore, this combined stream is piped over to a three(3) phase production separator. At the
separator, the water, the condensate and oil are separated. The water is piped over to a storage
tank. This tank is at atmospheric pressure. Any condensate that is still present in the water is
separated in the storage tank by gravity separation. These tanks typically ]told 300 barrels of
water. If a well is making five (5) BOWPD, the tank has sixty (60) days of storage capacity.
The pumper, al his discretion and in coordination with the water hauling company, calls for a
water truck to come and haul the water to the evaporation facility. The tanks on these trucks are
at atmospheric pressure and hold between eighty (80) and one hundred and twenty (120) barrels
of water.
Once the water truck arrives at the evaporation facility, the water is loaded via the load line to the
left (north) tank. Tlie water enters the tank near the bottom of the tank. The remaining
condensate, if any, separates to the top. The water flows into the "U-tube" piping arrangement
through the perforated pipe at the bottom of the lank. The water exits the first tank via this "U-
tube" piping and enters the second tank. The process that takes place in the second tank is
identical to the process in the first tank. The water is then discharged from the second lank into
the evaporation pit.
Evaporation of the water in the pit occurs through the normal evaporation at the rates which are
published by the NOAA. This rate is enhanced through the aeration system. This system sucks
water from the pit into a pump which feeds the twenty four (24) sprinkler heads positioned
around the pit. The sprinkler heads mist the water over the pit enhancing the evaporation
process.
i
FIRE CONTROL MEASURES
General
All project personnel are instructed as 10:
Fire danger for the day
Location of lire control equipment
Proper operation of lire control equipment
Emergency procedures and how to call for additional resources
Welding Operations
A minimum of one person is dedicated to act as a fire watch during welding operations
with a lire extinguisher at hand.
Welding shields are used during grinding operations to prevent sparks from leaving the
work areas and igniting vegetation.
Water trucks are used to wet down ground and nearby vegetation, as conditions dictate.
At the close of each day, welding personnel inspect the area of welding activities for any
smoldering debris and any conditions conducive to tires.
Communications
All SOCO vehicles are equipped with cellular communications on board
In the event of a fire
In the event of a lire, all personnel and appropriate equipment on site will be committed
to its containment and control
The BEM and appropriate lire authorities will be notified immediately.
Direction of lire control efforts will be transferred to appropriate fire fighting agency
personnel upon their arrival on site.
_23
J
L
.1P
MEC
3trRt mono
S .. J h.:.Jf rfi i '.ir c a r •r' v d ,i
SOCO EVAPORATION PIT
LANDSCAPING AND RECLAMATION PLANS
LANDSCAPING PLAN - The facility will be landscaped after all the construction is
completed in order to shield it from the people traveling on County Road 319. Although
there are no specific plans right now, it is our intention to put a combination of bushes
and trees such that the facility will be at least partially shielded year round. We would
appreciate any suggestion from the planning department and will work in those
suggestions into a final landscaping plan. Once the landscaping is in place, it will be
maintained by people in our Rifle office who will weed, water and fertilize the trees and
bushes regularly.
RECLAMATION PLAN - We anticipate that this facility could have a useful life of
between 20 and 30 years. At the end of the life or this facility, reclamation will consist of
the following:
* Removal of all equipment
* Filling in and leveling of the pit, slaking sure that the soil is put back to its original
level as near as practicable.
* Re -seeding the area with 100% certified weed free grass seed that is indigenous to
the arca.
* Complying with any special lease terms, stale and county regulations with regard to
final reclamation.