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Home My WebLink About1.09 Access DocumentsAccess Documents Grand River Gathering LLC High Mesa Compressor Station OA Project No. 012-0732 826 21 ½ Road | Grand Junction, CO 81505 | TEL 970.263.7800 | FAX 970.263.7456 70 6 240926400137THROM, DONALD R 240926400150 NOBLE ENERGY INC 240719300955 BUREAU OF LAND MANAGEMENT 240935400122HELEY, WILLIAM & SANDY A 240935400123JONES, LINDA High Mesa Compressor Station BUREAU OF LAND MANAGEMENT BUREAU OF LAND MANAGEMENT DAYBREAK REALTY LLC KLEBOLD, LARRY A & KAREN K ENCANA OIL & GAS (USA) INC DAYBREAK REALTY LLC BUREAU OF LAND MANAGEMENT 240721400954 240925100954 240719300162 240935100136 240936100048 240719300162 240936400955 Legend High Mesa Compressor Station Parcels Route to High Mesa Compressor StationHighway/InterstateCounty Roads 0 0.25 0.50.125 Miles Parcels represented with labels are witihin 200' of affected parcel PROJECT NO: DRAWN BY: DATE: 011-2059 Jenna Muhlbach 4/25/12 ROAD ACCESS MAP *5$1'5,9(5*$7+(5,1*//&HIGH MESA COMPRESSORSTATIONGARFIELD COUNTY, COLORADO 826 21-1/2 ROADGRAND JUNCTION,CO 81505TEL 970.263.7800FAX 970.263.7456 FIGURE R - 1 70 6 240926400137THROM, DONALD R 240926400150 NOBLE ENERGY INC 240719300955BUREAU OF LAND MANAGEMENT 240935400122HELEY, WILLIAM & SANDY A 240935400123JONES, LINDA High Mesa Compressor Station BUREAU OF LAND MANAGEMENT BUREAU OF LAND MANAGEMENT DAYBREAK REALTY LLC KLEBOLD, LARRY A & KAREN K ENCANA OIL & GAS (USA) INC DAYBREAK REALTY LLC BUREAU OF LAND MANAGEMENT 240721400954 240925100954 240719300162 240935100136 240936100048 240719300162 240936400955 Legend High Mesa Compressor Station Proposed Communication TowerParcels Route to Proposed TowerHighway/InterstateCounty Roads 0 0.5 10.25 Miles PROJECT NO: DRAWN BY: DATE: 011-2059 Jenna Muhlbach 4/12/12 ADJACENT PARCEL MAPGRAND RIVER GATHERING, LLC.HIGH MESA COMPRESSORSTATIONGARFIELD COUNTY, COLORADO 826 21-1/2 ROADGRAND JUNCTION,CO 81505TEL 970.263.7800FAX 970.263.7456 FIGURE $31 PURCHASEANDSALEAGREEMENT This PURCHASE AND SALE AGREEMENT dated as ofFebruary 17, 2006, (the "Agreement") is between CANYON GAS RESOURCES, LLC, a Delaware limited liability company (as "Seller"), and ENCANA OIL & GAS (USA) INC., a Delaware corporation (as "Buyer"). WHEREAS, Seller and Buyer are successors-in-interest to a Gas Gathering Agreement between Canyon Gas Resources, Inc. and Tom Brown, Inc. effective April I, 200 I (the "Gathering Agreement"); WHEREAS, pursuant to an amendment to the Gathering Agreement dated October 27, 2005 (the "Amendment"), Seller agreed to sell and transfer, and Buyer agreed to purchase, certain natural gas gathering facilities located in Garfield County, Colorado, referred to and described below as the Pipelines and Assets; and WHEREAS, Buyer desires to purchase and Seller desires to sell the Pipelines and Assets, upon the terms and subject to the conditions hereinafter set forth. 1. PURCHASE AND SALE: Upon the terms and subject to the conditions hereinafter set forth, Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller all of Seller's right, title, and interest in, to, and under all of the properties, privileges, rights, interests, in the natural gas gathering pipelines described in Exhibit A, attached hereto and made a part hereof (the "Pipelines") together with the meters, valves, and other equipment and tangible personal property installed on the Pipelines, including, without limitation the following (collectively referred to as the "Assets"): The Assets shall include all of the following: {a) all rights-of-way, easements, and other rights and interests in and to real property and appurtenances thereto owned by Seller and relating to or used in connection with the Pipelines (including but not limited to those interests described in Exhibit B attached hereto and made a part hereof (the "Real Property Interests'")), save and except those Real Property Interests related to or used in connection with the Retained Interests (as hereinafter defined); (b) Copies of all records related to engineering or operating the Pipelines, including deeds, property records, drawings, maps, charts, surveys, prints, cost information, reports, and envirorunental studies or plans ("Asset Books and Records'"); and (c) All licenses, permits, franchises, authorities, consents or approvals of a goverrunental authority relating to or used in connection with any portion of the Pipelines ("Permits"). Notwithstanding any other provision of this Agreement, it is understood and agreed that Seller does not intend to assign to Buyer any interest in Seller's South Parachute 8" trunkline gas gathering pipeline, as described in the attached Schedule I (the "Retained Interests"), and Seller hereby reserves all right, title and interest in and to the Retained Interests. 2. PURCHASE PRICE: The Purchase Price for the Pipelines and Assets as identified on Schedule 2 South Parachute Well Connect Invoice Totals shall be $2,457,583.69 (the "Closing Amount") and shall be paid by Buyer to Seller in immediately available funds at Closing. Upon payment of the Closing Amount, and subject to the provisions of Section S(i) below, the parties agree as follows : (a) no additional amounts will be owed Seller under Section 9 of the Amendment; {b) Buyer shall have been deemed to satisfy its obligations under Section 9 of the Amendment; and, (c) Buyer shall have no obligation to indemnify Seller pursuant to Section 6.01 of the Gathering Agreement with respect to the Pipelines and Assets. 3. CLOSING: Closing shall occur, subject to the provisions of Section S(i) below, on or before June 30, 2006, except as mutually agreed. The "Effective Time" shall be 7:00 A.M local time on the date of Closing. "Closing" shall mean the transfer of title to the Pipelines and Assets to Buyer, including execution and delivery of all documents required under this Agreement. Upon Closing, the parties agree to execute the Assignment and Bill of Sale in the form attached hereto and made a part hereof (the "Assignment") and, upon Seller's receipt of the Closing Amount from Buyer, Seller shall deliver the executed Assignment to Buyer. 4 . WARRANTIES: UPON CLOSING AND FROM AND AFTER THE EFFECTIVE TIME, SELLER AGREES TO WARRANT AND DEFEND TITLE TO THE PIPELINES AND ASSETS UNTO BUYER AND ITS SUCCESSORS AND ASSIGNS FOREVER AGAINST ALL PERSONS LAWFULLY CLAIMING ANY INTEREST IN THE PIPELINES AND ASSETS BY, THROUGH AND UNDER SELLER, BUT NOT OTHERWISE. SELLER COVENANTS WITH THE BUYER, ITS SUCCESSORS AND ASSIGNS THAT THE PIPELINES AND ASSETS ASSIGNED HEREUNDER ARE FREE AND CLEAR OF ALL LIENS, ENCUMBRANCES AND ADVERSE CLAIMS, OTHER THAN SELLER'S EXISTING MORTGAGE WHICH SHALL BE RELEASED FOLLOWING C LOSING. THE ASSIGNMENT SHALL BE MADE IN THE FORM ATTACHED HERETO WITHOUT WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE MERCHANTABILIITY OR FITNESS FOR PARTICULAR USE OR PURPOSE OF THE PIPELINES AND ASSETS, AND AS SUCH THE PIPELINES AND ASSETS ARE CONVEYED AS IS, WHERE IS AND IN THEIR CURRENT CONDITION. 2 5. ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES: Seller represents and warrants to Buyer that to its knowledge the following are true as of the Effective Time, except as set forth on Schedule 5 attached hereto: (a) Seller, to its knowledge, has not caused or allowed the accumulation, generation, use, treatment, storage, or disposal of Hazardous Materials (as hereinafter defined) in connection with or near the Pipelines, except in accordance with applicable Environmental Laws (as hereinafter defined); (b) To Seller's knowledge, there have been no releases of Hazardous Materials that are required to be reported under Environmental Laws for which any notice of violation was issued or other action taken by any regulatory authority; (c) Seller, to its knowledge, has secured and holds all Permits required under Environmental Laws for the operation of the Pipelines and Assets; (d) Seller, to its knowledge, has not received written inquiry or notice of any actual or threatened claim or of any civil, criminal or administrative proceeding related to or arising under any Environmental Laws relating to the Pipelines or Assets; (e) Seller, to its knowledge, has operated the Pipelines and Assets in material compliance with all applicable Environmental Laws. (f) For purposes of this Agreement, "Hazardous Materials" shall mean : (i) any chemicals, materials or substances defined or included in the definition of "hazardous substances," "hazardous materials," "toxic substances," "solid wastes," "pollutants," "contaminants," or words of similar import, under any Environmental Law, or (ii) any radioactive materials, friable asbestos, and polychlorinated biphenyls, or (iii) any petroleum, including spills or releases of petroleum products. In addition, "Environmental Laws" shall mean all laws, statutes, ordinances, permits, orders, judgments, rules or regulations which are issued or enacted by a governmental entity or tribal authority having appropriate jurisdiction that relate to (i) the prevention of pollution (ii) the remediation of pollution or (iii) the protection of the environment generally, including without limitation, the Clean Air Act, as amended, the Clean Water Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Federal Water Pollution Control Act, as amended, the Resource Conservation and Recovery Act of 1976, as amended, the Safe Drinking Water Act, as amended, the Toxic Substance and Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous and the Solid Waste Amendments Act of 1984, as amended, and the Oil Pollution Act of 1990, as amended. 3 (g) "Environmental Claims" shall mean all claims (including remediation, removal response, abatement, clean-up, investigative, and/or monitoring costs and any other related costs and expenses), settlements, expenses, charges, and assessments, (i) pursuant to any agreement, order, notice, requirement, or directive (including directives embodied in Environmental Laws), injunction , judgment or similar documents (including settlements) arising under or in connection with any Environmental Laws, or (ii) pursuant to any claim by a governmental entity or other person or entity for personal injury, property damage, damage to natural resources, remediation, or similar costs or expenses incurred or asserted by such entity or person pursuant to common law or statute arising out of the use, handling, treatment, storage, disposal, or release of any Hazardous Materials. (h) Buyer has contracted with Cordilleran Compliance Services, the "Environmental Consultant", to perform a Phase I limited environmental assessment and Buyer and its Environmental Consultant agree not to perform any Phase II or other environmental assessments prior to Closing w ithout written consent of Seller. Seller hereby agrees to reimburse Buyer for the actual , out-of- pocket costs of such assessment, estimated to be $5,000. The limited environmental assessment is expected to require one month to complete, at which time a report shall be issued to both Seller and Buyer, specifically setting out any Environmental Defects identified up to that point in time. "Environmental Defects" shall mean any environmental conditions identified in the environmental assessment that are reasonably determined to be a potential or actual violation of Environmental Law. The Environmental Consultant shall not be required to finalize the report until it has had an opportunity to re-inspect vegetation growth on the site of the Assets, taking into account the impacts of Buyer's construction and operation activities on the lands associated with the Assets and Pipelines; however, the final report shall be issued and notice of any Environmental Defects shall be made on or before June 15, 2006. Upon written notification to Seller of any Environmental Defects identified (which notification shall be Buyer's exclusive obligation), Seller agrees, subject to Section 5(i) below, to take all action necessary, as identified in the Environmental Defect notice, to: (i) remediate, remove, abate, or clean up, any Hazardous Materials on the Assets and/or relating to operation of the Pipelines; (ii) comply with Environmental Laws and/or secure any Permits necessary to operate the Pipelines and Assets in compliance with Environmental Laws; and, (iii) address, assume responsibility for, and resolve any actual or potential Environmental Defects identified in the environmental assessment. During the period of time between execution of this Agreement and Closing, the parties agree to cooperate in respect of gathering, measurement and redelivery of natural gas into and through the Pipeline and Assets . 4 (i) In the event Seller elects not to satisfy any or all of the requirements, if any, of Section 5(h) (i)-(iii) as to any of the Environmental Defects identified in the environmental assessment, the following shall occur as to the affected individual Pipelines and/or Assets: (i) Buyer's obligation to purchase such Assets and/or P ipelines from Seller and Seller's obligation to sell, only as to such Assets and/or Pipelines to Buyer, shall terminate, (ii) Seller shall assume liability for, and indemnify, defend, and hold the Buyer harmless from and against, any and all Environmental Claims, causes of action, or claims relating to, arising out of, or connected, directly or indirectly, with such Pipelines and/or Assets, unless caused by the Buyer with respect to Buyer's operation of the PI 36 and the PF 31 Pipelines as described in Exhibit A ("Seller Operated Pipelines") during Buyer's period of use; (iii) Seller and Buyer shall have no further obligations under Section 9 of the Amendment with respect to such Pipelines and/or Assets; (iv) Buyer shall have no obligation to indemnify Seller pursuant to Section 6.01 of the Gathering Agreement with respect to such Pipelines and/or Assets; and, (v) Seller shall continue to accept gas delivered by Buyer utilizing such Pipelines and/or Assets, except to the extent that such gas is delivered to Buyer's Aggregation Facilities as defined in the Amendment. Seller will notify Buyer by June 26, 2006, or such other mutually agreeable date, whether it will satisfy the requirements, if any, of Section 5(h)(i)-(iii) as to any of the Environmental Defects identified in the environmental assessment. To the extent that Buyer elects not to satisfy the requirements of Section 5(h)(i)-(iii) as to individual Pipelines and/or Assets, the Closing Amount shall be reduced by the value of those Pipelines and/or Assets as set out in Schedule 2 and Seller and Buyer shall be obligated to Close the transaction as to all other unaffected Assets and Pipelines per the terms of this Agreement. 6. OBLIGATIONS OF BUYER: From and after Closing, and subject to the provisions of Section 5(i) above, Buyer hereby covenants and agrees to assume all ofthe duties, liabilities and obligations ofthe Seller relating to the Pipelines and Assets from and after the Effective Time. 7. COVENANTS OF SELLER: From the date hereof until Closing, without first obtaining the consent of Buyer, Seller will not (a) waive any right of material value relating to the Pipelines and Assets, other than in the ordinary course of business; (b) convey, encumber, mortgage, pledge or dispose any of the Pipelines and Assets, other than Seller's existing mortgage entered into in the ordinary course of business (which shall be released following Closing); (c) enter into, modify or terminate any contracts relating to the Pipelines and Assets, other than in the ordinary course of business; or (d) contract or commit itselfto do any ofthe foregoing. In addition, Seller covenants that there are no preferential or similar rights to purchase any portion of the Pipelines and Assets. 5 8. CONDITIONS PRECEDENT TO CLOSING: Buyer shall be obligated to consummate the sale of the Pipelines and Assets as contemplated by this Agreement, provided the following condition precedent has been satisfied or has been waived by Buyer: (a) all representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects at and as of Closing; and, (b) Seller shall provide to Buyer a Certificate of Non-Foreign Status that satisfies Internal Revenue Code Section 1445 and the accompanying Treasury Regulations in the fonn of Exhibit C. 9. TAXES: To the best of its knowledge, as of the Effective Time, Seller has filed all material Tax returns that are due, all Taxes shown to be due on such returns have been paid, and there is no material dispute or claim concerning any Tax liability with respect to the Pipelines and Assets. "Tax" or "Taxes" means any federal, state, or local ad valorem tax, excise tax, sales tax, use tax, real or personal property tax, transfer tax, gross receipts tax, environmental tax, severance tax, license tax or other tax, assessment, duty, fee, levy, or other governmental charge, together with and including without limitation, any and all interest, fines, penalties and additions to tax resulting from, relating to, or incurred in connection with any such tax or any contest or dispute thereof. All ad valorem or similar Taxes accrued but not yet due and payable with respect to the Pipelines and Assets shall be prorated between Buyer and Seller as of the Effective Time. Such Taxes shall .be prorated as though payab le in twelve equal monthly installments. Accordingly, after Closing, (i) Buyer expressly assumes all obligations and liabilities for all Taxes with respect to the Pipelines and Assets for all periods after the Effective Time and (ii) Seller expressly assumes all obligations and liabilities for all Taxes with respect to the Pipelines and Assets for all periods before the Effective Time. Seller will receive and pay the ad valorem and property taxes attributable to the Pipelines and Assets for 2006 and Seller shall invoice Buyer in accordance with this Section 9 and Buyer agrees to promptly pay its proportionate share of such taxes to Buyer. 10. GOVERNINGLAW: This Agreement shall be governed by and construed under the Laws of the State of Colorado, excluding any choice of law rules which may direct the application of the Laws of another jurisdiction. 6 11. ENTIRE AGREEMENT: This Agreement supersedes all prior and contemporaneous negot1at1ons, understandings, letters of intent and agreements (whether oral or written) between the parties relating to the sale and purchase of the Pipelines and Assets and constitutes the entire understanding and agreement between the parties with respect to the sale and purchase of the Pipelines and Assets. 12. COOPERATION: Seller and Buyer shall take all further actions and execute, acknowledge and deliver all further documents that are necessary or useful in carrying out the purposes of this Agreement. So long as authorized by applicable law to do so, each of Seller and Buyer shall execute, acknowledge and deliver to the other all other additional instruments, notices, and other documents and to do all other further acts and things as may be necessary to more fully and effectively grant, assign and convey to Buyer the Pipelines and Assets. 13. MISCELLANEOUS: This Agreement may be executed in any number of counterparts, and each counterpart hereof shall be deemed an original instrument, but all such counterparts shall constitute but one assignment. This Agreement shall be binding upon and inure to the benefit of Seller, Buyer, and their respective successors in title and assigns. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective authorized officers as of this ~ day of April 2006. SELLER: CANYON GAS RESOURCES, LLC A Delaware Limited Liability Company By: PAulA 6 ~f1'U(ht Name: David B. Kenyon \.>)~ Title: Vice President 7 BUYER: ENCANA OIL & GAS (USA) lNC. A Delaware Corporation By~ Name: Dean Purcelli '5~ 'fJ, Title: Vice President !l::J ~ Exhibit A ASSETS This Exhibit A i s attached to and made part of the Purchase and Sale Agreement dated as of February 17, 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). The Assets, which are more particularly described in the attached Exhibit A-1 (Well Connect Pipeline Maps) and Exhibit A -2 (Equipment Li st), include the follow i ng: P A36 PI PELINE The PA36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following : 949 ft of 6 .625" OD, 0.188" wt, API 5 L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The P A36 Pipeline connected the following wells or planned wells: Daybreak 25-16 (Meter # 70216) Daybreak 36-1 (Meter # 70217) Daybreak Federa136-1BB (Future) Daybreak 25-16BB (Future) Daybreak 25-15 (Meter# 70218) Daybreak 36-2BB (F uture) PC36 P I PELINE The PC36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and con~ists of the following: 1 ;721 ft of 6.625" OD, 0 .188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The PC36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-12 (Meter # 70 124) TBI 25-14 (Future) TBI 26-3BB (Future) PF36 P I PELINE The PF36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following : 107ft o£6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment 8 The PF36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-22 (Meter# 70125) TBI Federal36-12C (Meter# 70220) TBI Federal 36-4 (Meter # 70222) TBI Federal 36-5 (Meter# 70221) PG36 PIPELINE The PG36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 1,204 ft of 6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The PG36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-23 (Meter# 70126) TBI 36-2 (Future) TBI 36-9BB (Future) TBI 36-llBB (Future) TBI 36-10 (Future) PH36 PIPELINE The PH36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 815ft of6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The PH36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-24 (Meter# 70128) PI36 PIPELINE The Pl36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 3,105 ft of 4.500" OD, 0.188" wt Pipeline 3,089 ft of 6.625" OD, 0.188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The PI36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-34 (Meter# 70136) TBI Federa l 31-5 (Meter# 70229) TBI Federal31-12 (Meter# 70228) TBI Federal 31-13 (Meter # 70227) TBI Federal36-16 (Meter# 70226) TBI Federal36-15BB (Future) TBI Federai31-16BB (Future) TBI Federal31-13BB (Future) 9 PK36 PIPELINE The PK36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists ofthe following: 137ft of8.625" OD, 0.188" wt Pipeline 1,666 ft of 6.625" OD, 0.188" wt Pipeline 1,531 ft of 6.625" OD, 0.188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The PK36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-32 (Meter# 70131) South Parachute TBI 36-33D (Meter# 70132) TBI Federal 36-13 (Meter # 70240) TBI Federal36-14 (Meter# 70241) TBI Federal36-15 (Meter# 70242) PH25 PIPELINE The PH25 Pipeline is located in Sec. 25-T7S-R96W and Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 554 ft of 6.625" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PH25 Pipeline connected the following wells or planned wells: Federal H-25 (Future) Federal25-1 (Future) Federal 25-2 (Meter# 70268) Federal 25-7 (Future) Federal25-9 (Future) PK2S PIPELINE The PK25 Pipeline is located in Sec. 25 and 36-T7S-R96W, Garfield County, Colorado and consists of the following: 2,611 ft of 4.500" OD, 0.188" wt Pipeline 3,690 ft of 6.625" OD, 0.188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The PK25 Pipeline connected the following wells or planned wells: South Parachute Federal25-32 (Meter# 70143) Federal25-12 (Meter# 70250) Federal25-13 (Meter# 70252) Federal 25-10 (Meter# 70251) Federal25-11BB (Future) Federai25-10BB (Future) 10 PN2S PIPELINE The PN25 Pipeline is located in Sec. 25-T7S-R96W, Garfield County, Colorado and consists of the following: 125ft of 4 .500" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PN25 Pipeline connected the following wells or planned wells: South Parachute Federal 25-42 (Meter # 70 146) P AJO PIPELINE The PA30 Pipeline is located in Sec. 29 and 30-T7S-R95W, Garfield County, Colorado and consists of the following: 4,562 ft of 3.500" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The P A30 Pipeline connected the following wells or planned wells: South Parachute Federal30-14 (Meter# 70148) Federal20-l3 (Future) Federall9-16 (Future) Federal30-1BB (Meter# 70281) PB30 PIPELINE The PB30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 2,441 ft of 6.625" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PB30 Pipeline connected the following wells or planned wells: Daybreak Federal19-15 (Future) Daybreak Federal30-2BB (Meter# 70262) Daybreak Federal30-2 (Future) Daybreak Federall9-14 (Future) PD30 PIPELINE The PD30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 1,207 ft of 6.625" OD, 0.188" wt Pipeline 4,497 ft of 8.625" OD, 0.188" wt Pipeline 1 ,232 ft of 6.625" OD, 0 .188" wt Pipeline Loop Mise valves, fittings, meters, EFMs and related equipment 11 The PD30 Pipeline connected the following wells or planned wells: Federal30-ll (Future) Federai30-3BB (Future) Federal 30-3 (Future) Federall9-14BB (Future) Federal 30-5 (Future) Federa130-5BB (Future) Federal19-13 (Future) Federal 30-4BB (Future) Federal 30-4 (Future) PG30 PIPELINE The PG30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists ofthe following: 118 ft of 4.500" 00, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PG30 Pipeline connected the following wells or planned wells: Federal30-9 (Meter# 70269) Federal30-6 (Future) Federal30-7 (Future) Federal30-8 (Future) PNJO PIPELINE The PN30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 2,866 ft of6.625" 00, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PN30 Pipeline connected the following wells or planned wells: South Parachute Federal 30-42 (Meter# 70 129) Federa130-15 (Future) PF31 PIPELINE The PF31 Pipeline is located in Sec. 31-T7S-R95W and Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 2,032 ft of 4.500" 00, 0.188" wt Pipeline 2,022 ft of 6.625" 00, 0.188" wt Pipeline Loop Mise valves, fittings, meters, EFMs and related equipment 12 The PF31 Pipeline connected the following wells or planned wells: South Parachute Federal31-22 (Meter# 70147) Federa131-3BB (Future) Federal31-5BB (Future) Federai31-12BB (Future) Federal 31-6 (Future) Federal 31-7 (Meter# 70255) Federal 31-11 (Meter# 70256) Federal 31-11BB (Meter# 70257) PA29 PIPELINE The PA29 Pipeline is located in Sec. 29-T7S-R95W, Garfield County, Colorado and consists of the following: 3,308 ft of 4.500" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PA29 Pipeline connected the following wells or planned wells: South Parachute Federal29-14 (Meter# 70142) South Parachute Federal29-24D (Meter# 70141) Federal20-15 (Future) Federal29-1 (Future) Federal28-4 (Future) PF29 PIPELINE The PF29 Pipeline is located in Sec. 29-T7S-R95W, Garfield County, Colorado and consists of the following: 985 ft of 6 .625" OD, 0 .188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PF29 Pipeline connected the following wells or planned wells: South Parachute Federal29-22 (Meter# 70123) Federal 29-3 (Meter# 70272) Federal 29-12 (Meter # 70273) 13 Exhibit A-1 Well Connect Pipeline Maps 14 ------~-----~---~-------- ·-· ---------------·--------- EXISTING PA36 PAD DAYBRE AK 25-16 DAYBREAK 36-1 DAYBREAK 25-15 PROPOSED DAYBREAK 25i115BB DAYBREAK 'REtl. 36-1 BB DA YBRE~ 36-288 EX ISTI NG PG 36 PA S.P. TB I 36 -2 PROPOSE ..__ _______ ---------------------·- PIPE LEGEND --EXISTIN G LI NES (AS·BUIL T) -PA36 EXISTING LINE (AS·BUIL T) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRE CONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRE CONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUILT) WELL LEGEND e EXISTING WELLS 9 EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD 'l e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD ----. -- G A S R E S 0 U R C E S , l l C PA36 WELL CONNECT PIPELINE 949 FEET, 6.625" OD, 0.186" WT .----------------------------------,-.----------- EXISTING PC36 PAD S .P. TBI 36-12 PROPOSED TBI 25-14 TBI 26-388 lNG PF36 PAD .P. TBI 3 6-22 I FED 36-12C TBI FED 36-5 TBI FED 3 6-4 ----------· _____________________ _L. ______________________ ..J PIPE LEGEND --EXISTING LINES (AS.BUIL T) -PC36 EXISTING LINE (AS.BUILT) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRE CONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS.BUIL T) WELL LEGEND e EXIST ING WELLS e EXISTIN G WELLS WITH PROPOSED DIRE CTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYS TE M WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD GAS R ESOU A CE S . ll C PC36 WELL CONNECT PIPELINE 1 721 FEET , 6.625' 00, 0.188'WT r------ , EXISTING PF36 PAD S.P. TBI 36-22 TBI FED 36-12C PIPE LEGEND TBI FED 36-5 TBI FED 36-4 EXISTING PK36 PAD S.P. TBI 36-32 S.P. TBI 36-330 , TBI FED 36 -~3 TBI FED 36 ~14 TBI FED 36-15 ---- ---------- --EXISTING LINES (AS-BUILT} -PF36 EXISTING LINE (AS-SUILT) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) 41<fllr.. --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUlL T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAO e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM I 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM L. WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD ---------- G A S A f S OUR CfS L L C PF36 WELL CONNECT PIPELINE 107 FEET, 6.625" OD, 0.188" WT DAY8REAK28 ~688 -~ DAY8REAK ·RED 36-188 DAY8R ~K 36-288 ' EXI STING Pl 36 PAD S,.P. TBI 36-34 PIPE LEGEND -EXISTING LINE S {AS-BUILT) -PG36 EXISTING LINE {AS-BUlL T) -EXISTING LINES (NO SURVEY) ----PROPOSED LINES lPRECONSTRUCTION SURVEY) -PROPOSED LINES NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUILT) WELL LEGEND e EXISTING WELLS 8 EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONN ECT ED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONN ECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD TBI FED 31-5 TBI FED 31 -1 2 T BI FED 3 1-1 3 T R LEED_3fi~t6.....____ __ ____, G A S R E S OURC E S . l l C PG36 WELL CONNECT PIPELINE 1.204 FEET, 6.625" 00, 0.188" WT .-.-'1/ ~~_!::;> ----·]·--l ocatiOO tJ S<ale Gadklld Cwnty. 1)~1"'-HTS T~ • ------J -• SOOion38 L:LJ 36-288 BB 1188 0 EXISTIN S.P. TBI ~ _p_L~S D A D ___ _,__, --'----L._/ PIPE LEGEND --EXISTING LINES (AS-BUILT) -PH36 EXISTING LINE (AS-BUll T) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRE CONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS.BUIL T) WELL LEGEND e EXISTING WELLS e EXI STING WELLS WITH PROPOSED DIRECTIONALS ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM l 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONALS ON SAME PAD e PROPOSED WELLS ON NEW PAD ------... -----+-----~ -- PH36 PAD G A S RES OUR CES, \I..C PH36 WELL CONNECT PIPELINE 815 FE ET, 6-625" OD, 0 .188' WT Scali: J HTS Locaticn: t-~C<Miy. c.-a .AU T1S A96W Colo: I f:t-05 Sedion38 -·----- ~--------· -------- 1 i I I ., ;;; / / PIPE LEGEND --EXISTING LINES (AS-BUll T) I Bl 36-2·..------.-....... T81 36-988 T81 36-1188 TBI 36 -10 EXISTING Pl36 PAD S.P. T81 36-34 TBI FED 31-5 T81 FED 31-12 T81 FED 31-13 TBI FED 36-16 PROPOSED TBI FED 36-1588 T81 FED 31-1688 T81 FED 31-1388 I ........ - ---------- -Pl36 EXISTING LINES (AS-BUILTS MODIFIED BY OFFSET TO SHOW LOOP) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS. BUll T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTE M 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTE M WITH PROPOSED DIRECTIONALS ON SAME PAD e PROPOSED WELLS ON NEW PAD G AS fi!E$0URC ES, lLC Pl36 WELL CONNECT PIPELINE 3105 FEET. 4.5" OD, 0.188" WT 3089 FEET. 6.625" OD. 0.188" WT --=-n~~-,-o.-.w.,,-:- NTS T1S RfiJf!ffl Dtte It-~ S«<icn36 ----- EXISTING PK36 PAD S.P. TBI 36-32 S.·P. TBI 36-330 , TBI FED 36-~i TBI FED 36 ~1L~- TBI FED 36-15 '--------~-----________________________________ __J PIPE LEGEND --EXISTING LINES (AS-BUILT) -PK36 EXISTING LINES (AS-BUILTS MOOIFIEO BY OFFSET TO SHOW LOOP) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRE CONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (A5-BUIL T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD G A S R II! S 0 U R C t: S , L l C I ------P-K36-·------ r WELL CONNECT PIPELINE 1666 FEET.6.625" OD, 0.188"WT 1531 FEET, 6.625" 00, 0.188" WT ;.;~r·~r:~~ --------------- EXISTING PH25 PAD FED H-25 FED 25-2 PROPOSED PH25 Pt , AD FED 25-1 FED 25-7 FED 25-9 PIPE LEGEND --EXISTING LINES (AS-BUILT) -PH25 EXISTING LINE (PRECONSTRUCTION SURVEY) --EXISTING LINES (NO SURVEY) --EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUILT) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED OIRECTIONALS ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONALS ON SAME PAD e PROPOSED WElLS ON NEW PAD /• -------- EXISTING PN25 P S.P. FED 25-42 EX@-1~ PK25 PAD FED 25-1 --==-=---'~........:__ ____ FED 25-7 S.P. FED 25-32 FED 25 g FED 25-10 - FED 25-12 FED 25-13 PROPOSED 25-11BB 25-1088 EXISTING PA36 PAD DAYBREAK 25-16 DA EXISTING PC36 PAD DAYBREAK 25-15 ,, PROPOSED '\ S.P. TBI 36-12 PROPOSED TBI 25-14 TBI2p-3BB NG PF36 PAD S.P. TBI 36-22 I FED 36-12C TBI FED 36-5 TBI FED 36-4 PIPE LEGEND -EXISTING LINES (AS·BUILT) DAYBREAK 252l6BB DAYBREAK 'REb 36-1 BB DAYBR~ 36-2BB -PK25 EXISTING LINES (ONE AS-BUll T AND ONE EXISTING WITH NO SURVEY MODIFIED -EXISTING LINES (NO SURVEY) BY OFFSET TO SHOW LOOP) ----PROPOSED LINES (PRE CONSTRUCTION SURVEY) -PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHlJTE lr (AS.BUIL T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONALS ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED OIRECTIONALS ON SAME PAD e PROPOSED WELLS ON NEW PAD 1ZJ't£ f)~~ J ---------------- PK25 WELL CONNECT PIPELINE 2611 FEET, 4.5' OD, 0.188' WT -3690 FEET, 6 .625' OD, 0.188' WT ------·------------------- EXIS TI N G PN25 PA D S.P. FED 25-4 2 FED 25-1 FED 25-1 PROPOS FED 25-11 D 25-1 EX IS TING PC36 PAD S.P. TBI 36-12 PROPOSED PIPE LEGEND --EXISTING LINES (AS-BUILT) -PN25 EXISTING LINE (AS.BUILT) --EXISTING LINES (NO SURVEY) ----PROPOSED LINES !PRECONSTRUCTION SURVEY) --PROPOSED LINES NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (A$-BUILT) WELL LEGEND e EXISTING WELLS e EXISTING WE LLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WEUS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD GAS RESO U RCE S . LlC I I PN25 l W ELL CONNECT PIPELIN E --1~FlE~T. ~~;:fl,0.168" _wr ---.. Scale; Go~y, ~8 :AES N'TS T7S R96W 0.1&. 1 f.g-()5 S«11on2 5 .. -----------~ -· - PIPE LEGEND -EXISTING LINES (AS-BUILT) -PA30 EXISTING LINE (AS-BUll T) -EXISTING LINES (NO SURVEY) EXISTING PA30 PAD S .P. FED 30-14 FED 30-188 PROPOSED FED 20-13 FED 19-16 -EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) -PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUll T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD EXISTING PF S.P. FED FED 29-3 FED 29-12 !.~,,~~~--- ~' PA30 WELL CONNECT PIPELINE -4~~ [FEET ~~~::0, O.J188" ~T ---. Sea: ~Coo!Vy. OlawnB :AES NTS Stdlon 2t T7S R95W Co to: 1 r.- Secllon30 T1S R95W ----·- .. , EXIST IN DAYBREA PROPOSE DAYBREA DAYBREA DAYBREA G30 PAD ---·---··-. FED2 FED 1 PB30 PAD FED 30-28 PB30 PAD FED 19-15 FED30 FED 1 -14 '-----·------·-·------L------- PIPE LEGEND --EXISTING LINES (AS-BUll T) -P830 EXISTING liNE (PRECONSTRUCTION SURVEY) --EXISTING LINES (NO SURVEY) --EXISTING LINES (PRECONSTRUCTION SURVEY) ---• PROPOSED liNES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 6" (A5-BUIL T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD I ---· -------- 1 ..cldrrn. 1 G A S A E $0 VA C I!$. l l C j----·· I PB30 I WELL CONNECT PIPELINE I -2441 FEET , 6.625" OD. 0.166" WT I -:.~ Ga=~· 1-~~ByAES - NTS I T7S R05W Oalt. 11·9-06 1 Sldion30 ___ ...:.. ----- -----·---· ---· ------------- FED 30-11 PROPOSED FED 30-388 FED 30-3 FED 19-1488 ~ FED30-5 ~FED30 -5BB FED 19-13 FED 30-488 FED 30-4 PAD EXISTING PG30 PAD DAYS DAYBR DAYBR FED 30-6 PROPOSED PL30 PAD 3 0 (NOT INCLU~D IN 6-16-0~~LL SCHEDULE) ~· PIPE LEGEND -EXISTING LINES (AS-BUlL T) -PDJO EXISTING LINE (PRE CONSTRUCTION SURVEY AND NO SURVEY) -EXISTING LINE S (NO SURVEY) -EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) -PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUlL D WELL LEGEND e EXISTING WELLS e EXISTING WEUS WITH PROPOSED DIRECTlONALS ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD Q A $ R f. S 0 U R C E $. L l C PDJO WELL CONNECT PIPELINE -1207 FEET, 6.625' OD, 0.188' WT -4497 FEET, 8.625' OD, 0.188" WT -123LfEEI 'L.~~~~_._OJ_88F' WT LOOP Scolt: GalfleldC<>Jt<y. cw->&y.AES NTS .=. Colo: lt-&45 SI!Ciion30 ·~ ----. ----- FED 30-11 PROPOSED FED 30-388 FED 30-3 FED 19-1488 FED 30-5 FED 30-588 FED 19-13 FED 30 -488 FED 30-4 PAD EX ISTING PG30 PAD FED 30-9 PROPOSED PG30 PAD FED 3~0-.-.:-8:--- PIPE LEGEND -EXISTING LINES (AS-BUILT) -PG30 EXISTING LINE (NO SURVEY) -EXISTING liNES (NO SURVEY) -EXISTING LINES (PRECONSTRUCTION SURVEY) • ----PROPOSED LINES (PRE CONSTRUCTION SURVEY) -PROPOSED LINES ( NO PRE CONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS.BUIL T) WELL LEGEND e EXISTING WELLS ----~"'='11 e EXISTING WELLS WI TH PROPOSED DIRECTIONALS ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM rrz i:;.~ ·----··---- FED 30- PROPO FED 20- FED 19- PG30 WELL CONNECT PIPELINE -118 FEET, 4 .5" 00, 0.188"WT 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 9 l WITH PROPOSED DIRECTIONAL$ ON SAME PAD _,12.~ e PROPOSED WELLS ON NEW PAD 'I ,-.I ----·--------·----· -·-----··---~-- FED 30-6 PROPOSED ~L30 PAD 3 0 (NOT INCLUDI~D IN 6-16-0~D~ILL SCHEDULE) ~) FED 30-15 FED 30-1588 FED 30-11 #4 PIPE LEGEND --EXISTING LINES (AS-BUlL n -PN30 EXISTING LINE (AS-BUILT) --EXISTING LINES (NO SURVEY) --EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8' (AS-BUll T} WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM #6 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAL$ ON SAME PAD e PROPOSED WELLS ON NEW PAD 1 -4--<lif~-- OAI RES OURCES t..LC ----- PN30 WELL CONNECT PIPELINE E 866 FEET, 6.625'.0D. 0.188' WT GolleOIC<>Ully, OraMI 8 AES g;-r-~ J-l.ccatian -E 1)~~ _ =~ Cow ,r;_ PH36 PAD 24 PIPE LEGEND -EXISTING LINES (AS-BUILT) FED 31 -3 FED 30-13 FED 31-488 FED 31-4 -~-E XISTING PF31 PAD ~~ S.P. FED 31-22 FED 31-7 FED 31-11 FED 31-1188 PROPOSEDJl FED 31 -388 FED 31-588 FED 31-1288 FED 31 -6 -·--------------------' -PF31 EXISTING LINES (A5-BUILTS MODIFIED BY OFFSET TO SHOW LOOP) -EXISTING UNES (NO SURVEY) ·---PROPOSED LINES (PRECONSTRUCTION SURVEY) -PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUll T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONALS ON SAME PAD L ... _~ROP~SE D WE~LS ON NE~-p~ - G AS RES O U R CE S . l L C PF31 WELL CONNECT PIPELINE 2032 FEET, 4.5" 00, 0 .188" WT 2022 FEET, 6.625"0D, 0 .188" WT l lOcitiOn; ]-. ~ty, CrownS .AfS -3GT1SR96W oa ... tf:9<l5 Sedion 31l7S R9SW ----~ ·--- ...-------------------------------·----- EXISTING PF29 PAD S.P. FED 29-22 FED 29-3 FED 29-12 EXISTING PA 9 PAD S.P. FED 29-4 S.P . FED 29-40 PROPOSED FED 20-15 FED 29-1 FED 28-4 EXISTING PJ29 PAD * * '29-95 - • EXISTING Pl29 PAD 29-95A L PROPOSFD PN?Q PAO. ______________ _ PIPE LEGEND --EXISTING LINES (AS-BU ll D -PA29 EXISTING LINE (AS-BUILT) --EXISTING LINES (NO SURVEY) --EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRE CONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (AS-BUll T) WELL LEGEND e EXISTING WELLS e EXISTING WELLS WITH PROPOSED DIRECTIONAL$ ON SAME PAD e WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WEllS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONAl$ ON SAME PAD e PROPOSED WELLS ON NEW PAD G " $ It f S 0 U A C I! S . l L C PA29 WELl CONNECT PIPELINE 3308 FEET, 4.5" OD, 0.188" WT -.:~ ~----·- ~ly, Oolwn 8 .A£S T7S _,. Date. t f:- Sec:llon29 ----- r·---------------------·-------------- EXISTING PF29 PAD S.P. FED 29-22 FED 29-3 FED 29-12 ~ . 4 __1___ __ ), _______ _ PIPE LEGEND --EXIST ING LINES (A5-BUILT) -PF29 EXISTING LINE (AS-BUILT) --EXISTING LINES (NO SURVEY) --EXISTING LINES (PRECONSTRUCTION SURVEY) ----PROPOSED LINES (PRECONSTRUCTION SURVEY) --PROPOSED LINES ( NO PRECONSTRUCTION SURVEY) -SOUTH PARACHUTE 8" (A5-8UIL T) WELL LEGEND e EXISTING WELLS l e EXISTING WELLS WITH PROPOSED DIRECTIONALS ON SAME PAD e WEUS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM 0 EXISTING WELLS EITHER SHUT IN OR NOT CONNECTED TO SYSTEM WITH PROPOSED DIRECTIONALS ON SAME PAD e PROPOSED WELLS ON NEW PAD -----· 29 EXISTING PJ2. GA S flt !90 U RCES, L L G PF29 WELL CONNECT PIPELINE 985 FEET, 6.625" 00, 0.188" WT sm~-·: ~.;..,. I =·r ·~-j KTS I T?S R90W 0. .. I ·8-o5 ____ _L ~~~----- Exhibit A-2 Equipment List 15 (SHORT) (REG) DIRECT OIRECT 5-MOUNT MOUNT WAY STAND STANO MVS RTO 2·Mm. (POD) (REG) PAD NAME WELL NAME 603 ~07 609 MAN. OFFS OFFS (.010%) (MET At) TUBE HEATER HEATE R DAYBREAK 25-16 1 1 1 1 1 1 PA36 DAYBREAK 36-1 '809' 1 1 1 1 PA36 (6 DAYBREAK 25-15 '809' 1 1 1 1 RUNPOQI Pad Totals 1 3 3 3 3 1 PC36 SOUTH PARACHUTE 36-12 1 I 1 1 1 1 1 1 Pad Totals I 1 I I 1 I I 1 1 I 1 I 1 I I 1 SOUTH PARACHUTE 36-22 1 1 1 1 1 1 1 PF36 SOUTH PARACHUTE 36-12 'C' '407' 1 1 1 1 1 SOUTH PARACHUTE 36·5 '407' 1 1 1 1 1 SOUTH PARACHUTE 36-4 '407' 1 1 1 1 1 Pad Totals 1 4 4 4 4 4 1 PG36 SOUTH PARACHUTE 36 -23 1 1 1 1 1 1 1 I Pad Totals 1 1 1 1 1 1 1 PH36 SOUTH PARACHUTE 36·24 1 1 1 1 1 1 1 I Pad Totals 1 1 1 1 1 1 1 TBI FEDERAL 36-16 1 1 1 1 1 1 SOUTH PARACHUTE 36-34 '809' 1 1 1 1 Pl36 TBl FEDERAL31-13 '809' 1 1 1 1 TBl FEDERAL 31-12 '809' 1 1 1 1 P136 (4 TBl FEDERAL 31-5 '809' 1 1 1 1 RUN POD SOUTH PARACHUTE 36-34 1 1 Pad Totals 1 5 5 5 5 1 1 1 SOUTH PARACHUTE 36-32 1 1 1 1 1 1 SOUTH PARACHUTE 36-33 'D' '809' 1 1 1 1 PK36 TBl FED 36-13 '809' 1 1 1 1 TBI FED 36-14 '809' 1 1 1 1 PK31 (5 TBI FED 36-15 '809' 1 1 1 1 RUN POD Pad Totals 1 5 5 5 5 1 FEDERAL 25-2 1 1 1 1 1 1 FEDH-25 '809' 1 1 1 1 PH25 PROPOSED WELL '809' 1 1 1 1 PROPOSED WELL '809' 1 1 1 1 PH255-- PROPOSED WELL '809' 1 1 1 1 RUN POD Pad Totals 1 5 5 5 5 1 PK25 (6 SOUTHPARACHUTE25-32 1 1 1 1 1 RUN POD 1 PK25 TBI FEDERAL 25-12 '809' 1 1 1 1 TBI FEDERAL25-10 '809' 1 1 1 1 TBI FEDERAL25-13 '809' 1 1 1 1 PROPOSED WELL '809' 1 1 1 1 PROPOSED WELL '809' 1 1 1 1 Pad Totals 1 6 6 6 6 1 PN25 SOUTH PARACHUTE FED 25-42 1 1 1 1 1 1 1 I Pad Totals T 1 1 1 1 1 1 1 PA30 !SOUTH PARACHUTE 30-14 1 1 I I 1 1 1 1 1 FEDERAL 30-1 'BB' '407' 1 1 I 1 I 1 I 1 1 I Pad Totals I I 1 I 2 I I 2 I 2 I 2 I 2 I I 2 (SHORn (REG) DIRECT DIRECT s. MOUNT MOUNT WAY STANO STANO MVS RT D 2" MTR. (1'00) (RFG) PAD NAME WELL NAME 5<l3 407 809 MAN. OFFS OFFS (.010%) (METAL) TUBE HEATER HEATER DAYBREAK FED 30-2 'BB' 1 1 1 1 1 1 PB30 PROPOSED WELL '40T 1 1 1 1 PROPOSED WELL "407' 1 1 1 1 PB304· PROPOSED WELL '407' 1 1 1 1 RUN POD Pad Totals 1 4 4 4 4 1 FEDERAL 30·11 0 1 1 1 1 1 PROPSOEO WELL '809' 1 1 1 1 PD30 PROPOSED WELL '809" 1 1 1 1 PROPOSED WELL taos• 1 1 1 1 PO 30 5· PROPOSED WELL '809' 1 1 1 1 RUN POD Pad Totals 0 5 5 5 5 1 FEDERAL 30-9 1 1 1 1 1 1 PG30 4RUNS SETUP '407' 1 1 1 1 '40T 1 1 1 1 PG 30 4· '40T 1 1 1 1 RUN POD Pad Totals 1 4 4 4 4 1 PN30 I soUTH PARACHUTE FED 30-42 1 11 1 I 1 I 1 1 I 1 I 1 I 1 1 Pad Totals I 1 T 1 I I 1 I 1 I 1 I 1 I I 1 SOUTH PARACHUTE 31-22 1 1 1 1 1 1 PF31 FEDERAL 31-7 '809' 1 1 1 1 FEDERAL 31-11 '809' 1 1 1 1 PF31 4- FEDERAL 31-11 'BB' '809' 1 1 1 1 RUN POD Pad Totals 1 4 4 4 4 1 26-14 1 1 1 1 1 1 1 PA29 126-240 '407' 1 1 1 1 1 1 I Pad Totals 1 I 2 I I 2 I 2 I 2 I 2 I I 2 SOUTH PARACHUTE 29-22 1 1 1 1 1 1 1 PF29 FEDERAL 29-3 '407' 1 1 1 1 1 1 FEDERAL 29-12 '407' 1 1 1 1 1 1 Pad Totals 1 3 3 3 3 3 3 (SHORt) (REG) DIRECT DIRECT 5-MOUNT MOUNT WAY STAND STAND MVS RTO 2"MTR. (POOl (REG) PAD NAME WELL NAME 503 407 809 MAN, OFFS OFFS (.010%) (ME7AL) TUBE HEATER HEATER 5 6 6 57 41 16 57 57 17 9 14 SPOOl 2 5 POOl 3 4 POll 4 Exhibit B REAL PROPERTY INTERESTS This Exhi bit B is attached to a nd made part of the Purchase and Sale Agreement dated as of February 17 , 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). Garfield County, Colorado Lease Number: TBD Status: Active Recorded: Not recorded Lease Date: TBD Lessor: USDI BLM Expire Date: TBD Lessee: Canyon Gas Resources. LLC Description: Right-of-Way Grant Legal: T7S-R95W-Sec 29 Sl /2NWI/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 29 SWI/4NEI/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 29 NW1/4NEI/4 Garfield County , CO Sixth Principal Meridian T7S-R95W-Sec 30 NE/14NEI/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 SEI /4NE1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 NEJ/4SEI/4 Garfield County. CO Sixth Principal Meridian T7S-R95W-Sec 30 NWJ/4SEI/4 Garfield County. CO Sixth Principal Meridian T7S-R95W-Sec 30 SWI /4S E114 Garfield Co unty. CO Sixth Principal Meridian T7S-R95W-Scc 31 SW1 /4NW1 /4 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 NEI/4SW1/4 Garfield County, CO Sixth Principal Meridian Lease Number: COC67720 Lease Date: 06/27/2005 Expire Date: 12 /31/2034 Description: Right-of-Way Grant Legal: Status: Active Recorded: Not recorded Lessor: USDI BLM Lessee: Canyon Gas Resources, LLC T7S-R95W-Sec 29 SW1/4NW114 Garfield County. CO Sixth Principal Meridian T7S-R95W-Sec 29 NWI /4SWI/4 Garfield County. CO Sixth Principal Meridian T7S-R95W-Sec 30 Lot 3 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 NI/2SEI/4 Garfield County. CO S ixth Principal Meridian T7S-R95W-Scc 30 SE1 /4NE114 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 3 I Lot 4 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 SEI/4NEI/4 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 NE114SW1/4 Garfield County, CO Sixth Principal Meridian 16 SCHEDULE 1 RETAINED INTERESTS This Schedule I Retained Interests is attached to and made part of the Purchase and Sale Agreement dated as of February 17, 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). Pursuant to Section 1 of the Purchase and Sale Agreement, Seller is retaining all of its right, title and interest in and to Seller's South Parachute 8" Trunkline gas gathering pipeline and together with the appurtenant easements and pipeline rights-of-way, as shown on the Map attached hereto and made a part thereof (the "Retained Interests"). The Retained Interests Map shows only that portion of the South Parachute 8" Trunkline where it interconnects with the Assets and Pipelines being assigned to Buyer. The South Parachute 8" Trunkline is located on the following easements: l. United States Department of Interior Bureau of Land Management Right-of- Way Grant, Serial No. COC-66335 issued in October 2003 to Canyon Gas Resources, Inc. including, without limitation, certain lands located in Sections 29, 30 and 31, Township 7 South, Range 96 West of Garfield County, Colorado. 2. Right-of-Way Agreement dated August 29, 2003, from Tom Brown, Inc. to Canyon Gas Resources, Inc. covering certain lands in Section 36, Township 7 South, Range 96 West of Garfield County, Colorado. 17 25 ~ l~ r ~ --WELL CONNECT LATERALS ........ SOUTH PARACHUTE 8-INCH (RETAINED ASSET) ~ * *' Wl.22 * ,.#' ... 31 ~ .. · SCHEDULE/ TO PURCHASE AND SALE AGREEMENT RETAINED ASSETS ( l I ~ ·* 29 32 I 4l<fitn... 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PAII-I PC3S -PG H I-I PIH -PHl5 I PK21 I PN25 I ,..UO I PBJO I 1'010 I PGJO I PHSO I PFJ1 I PA21 I PF2t ~VJ ~t.2006 R.nA ,.., .. SCHEDULES ENVIRONMENTAL MATTERS This Schedule 5 Environmental Matters is attached to and made part of th e Purchase and Sale Agreement dated as of February 17, 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). I . Pipeline rupture on South Parachute System in February 2005 caused by third party construction activities. The clean up was completed by the environmental contractor, Cordilleran Compliance Services. Exhibit C Certificate of Non-Foreign Status This Exhibit Cis attached to and made part of the Purchase and Sale Agreement dated as of February 17, 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). Pursuant to Treasury Regulation § 1.1445-2(b)(2)(iii), this affidavit is provided by Cantera Resources Holdings, LLC, a Delaware limited liability company, ("Cantera Holdings") which is, directly the sole beneficial owner for U.S. federal income tax purposes, of Canyon Gas Resources, LLC , a Delaware limited liability company ("Canyon LLC"). Canyon LLC is a disregarded entity, as defined in Treasury Regulation § 1.1445-2(b)(2)(iii). Section 1445 of the Internal Revenue Code provides that a transferee of a U.S . real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S . real property interest under local law) will be the transferor of the property and not the disregarded entity. To infortn the transferee that withholding of tax is not required upon the disposition of a U.S . real property interest pursuant to the Agreement, dated as of February 17, 2006 by and between Canyon LLC and EnCana Oil & Gas (USA) Inc., a Delaware corporation, the undersigned hereby certifies the following: 1. Cantera Holdings is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. Cantera Holdings is not a disregarded entity as defined in § 1.1445-2(b )(2)(iii); 3. Cantera Holdings Employer Identification Number is 84-1575074; 4. Cantera Holdings office address is located at 7400 East Orchard Road, Suite 3250, Englewood, Colorado 80 111. Cantera Holdings understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalties of petjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Cantera Holdings. Cantera Resources Holdings, LLC Name: Keith R. Finger Title: Senior Vice President and Chief Financial Officer Date: 20 ASSIGNMENT, BILL OF SALE, AND CON VE YANCE This Assignment, Bill of Sale, and Conveyance (the "A ssignment") i s from Canyon Gas Resources, LLC ("Grantor ") and E nCana Oil & Gas (USA) Inc . ("Grantee"). Grantor, for good and valuable consideration, the receipt and suffici ency of which are hereby acl.:nowledged by Grantor, do es hereby sell , transfer, assign, convey, set over and deliver unto Grantee, effective as of7:00 a .m . Mountain Time on Ahrid I() , 2006 (the "Effective Time "), the Pipelines and Assets (as hereinafter d efiried). Notwithstanding any other provision of this Assignme nt, it is understood and agreed that Grantor does not intend to assign to Grantee by this Assignment any interest in Grantor's South Para chute trunkline gas gathering pipeline, as described in the attached Schedule 1 (the "Retained Interests"), and Grantor hereby reserves all right , title and interest in and to such Retained Interests. Grantor hereby sells, transfers , assigns, conveys, sets over, and delivers to Grantee, and Grantee hereby purchases and acquires and accepts from Grantor, all o f Grantor's right, title, and interest in, to, and under all of the properties, privileges, rights, interests, in the natural gas gathering pipelines described in Exhibit A, attached hereto and made a part hereof {the "Pipelines") together with the meters, valves, and other equipment and tangible personal property installed on the Pipelines, including, without limitation the following (collectively referred to as the "Assets'): I. ASSETS: The Assets shall include all of the following: (a) all rights-of-way, easements, and other rights and interests in and to real property and appurtenances thereto owned by Grantor and relat ing to or use d in connection with the Pipelines (including but not limited to those interests described in Exhibit B attached hereto and made a part hereof(the "Real Property Interests")), save and except those Real Property Interests related to or used in connection with the Retained Interests; (b) Copies of all records related to engineering or operating the Pipelines, including deeds, property records, drawings, maps, charts, surveys, prints, cost information, reports, and environmental studies or plans ("Asset Books and Records'); and (c) All licenses, permits, franchises, authorities, consents or approvals of a governmental authority relating to or used in connection with any portion of the Pipelines ("Permits"). TO HAVE AND TO HOLD the Pipelines and Assets unto Grantee and Grantee's successors and assigns forever without warranty except as hereinafte r expressly provided, and subject to the further terms, conditions and provisions hereof. 2. WARRANTIES GRANTOR DOES HEREBY AGREE TO WARRANT AND DEFEND TITLE TO THE PIPELINES AND ASSETS UNTO GRANTEE AND ITS SUCCESSORS AND ASSIGNS FOREVER ONLY AGAINST ALL PERSONS LAWFULLY CLAIMlNG ANY INTEREST IN THE PIPELINES AND ASSETS BY, TIIROUGH AND UNDER GRANTOR, BUT NOT OTHERWISE. GRANTOR COVENANTS WITH THE GRANTEE, ITS SUCCESSORS AND ASSIGNS THAT THE PIPELINES AND ASSETS HEREIN ASSIGNED ARE FREE AND CLEAR OF ALL LIENS, ENCUMBRANCES AND ADVERSE CLAIMS, OTHER THAN GRANTOR'S EXISTING MORTGAGE WIDCH SHALL BE RELEASED FOLLOWING CLOSING. THIS ASSIGNMENT IS MADE WITHOUT WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE MERCHANT ABILIITY OR FITNESS FOR PARTICULAR USE OR PURPOSE OF THE PIPELINES AND ASSETS, AND AS SUCH THE PIPELINES AND ASSETS ARE CONVEYED AS IS, WHERE lS AND IN THEIR CURRENT CONDITION. Furthennore, this Assignment is made with full substitution and subrogation of Grantee and Grantee's successors in title and assigns in and to all warranties and covenants heretofore given by others with respect to the Assets or Pipelines or any portion thereof. 3. OBLIGATIONS OF GRANTEE Grantee hereby covenants and agrees to assume all of the duties, liabilities and obligations of the Grantor relating to the Pipelines and Assets from and after the Effective Time, subject to Grantor's obligation to indemnify Grantee as set forth above. 4 . COOPERATION Grantor and Grantee shall take all further actions and execute, acknowledge and deliver all further documents that are necessary or useful in carrying out the purposes of this Assignment. So long as authorized by applicable law to do so, each of Grantor and Grantee shall execute, acknowledge and deliver to the other all other additional instruments, notices, and other documents and to do all other further acts and things as may be necessary to more fully and effectively grant, assign and convey to Grantee the Pipelines and Assets. 5. MISCELLANEOUS This Assignment is made subject to the tenns and conditions of the Purchase and Sale Agreement between Grantor and Grantee dated as of February 17, 2006. In the event of a conflict between this Assignment and the Purchase and Sale Agreement, the tenns and conditions of the Purchase and Sale Agreement shall control. This Assignment may be executed in any number of counterparts, and each counterpart hereof shall be deemed an original instrument, but all such counterparts shall constitute but one assignment. This Assignment shall be binding upon and inure to the benefit of Grantor, Grantee, and their respective successors in title and assigns. 2 Executed on the __ day of ____ , 2006 to be effective for all purposes as of the Effective Time. GRANTOR: CA.t'NON GAS RESOURCES, LLC A Delaware Limited Liability Company By: p~~~~ Name: "'QA-vll> /1 . /CE.Nif'IN STATE OF COLORADO coUNTY OF IM..oll #P& , ) ) ss. ) GRANTEE: By: ~ . , Name:Da\li ~\ro1J A The foregoing instrument was acknowl~dged before me thisi'n(day of ~ , 2006, by~,?.~· , as ~CL &,.,·r4.c;;e of Canyon Gas Resources, LLC. Witness my hand and official seal. ¥6...7. ~L. My commission expires : ~· ..z-; .;i.pO .6. STATE OF COLORADO ) ) ss. CITY MTD COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this ~day of t\B?IL. , 2006, by Dean V. Purcelli, as Vice President o fEnCana Oil & Gas (USA) Inc . Witness my hand and official seal. My commission expires~ ()liMW EX?!RES ~ 3 Exhibit A PIPELINES This Exhibit A is attached to and made part of the Assignment, Bill of Sale, and Conveyance dated , 2006 by and between Canyon Gas Resources, LLC (as Grantor) and EnCana Oil & Gas (USA) Inc. (as Grantee). P A36 PIPELINE The PA36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the followin g: 949 ft of 6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The P A36 Pipeline connected the following wells or planned wells: Daybreak 25-16 (Meter # 70216) Daybreak 36-1 (Meter# 702 1 7) Daybreak Federal36-1BB (Future) Daybreak 25-16BB (Future) Daybreak 25-15 (Meter# 70218) Daybreak 36-2BB (Future) PC36 PIPELINE The PC36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 1,721 ft of6.625" OD, 0.188" wt, API SL-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The PC36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-12 (Meter# 70124) TBI 25-14 (Future) TBI 26-3BB (Future) PF36 PIPELINE The PF36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following: 107 ft of 6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves, fittings, meters, EFMs and related equipment The PF36 Pipeline connected the following wells or planned wells: South Parachute TBI 36-22 (Meter # 70125) TBI Federal 36-1 2C (Meter# 70220) TBI Federal 36-4 (Meter# 70222) TBI Federal 36-5 (Meter# 70221) 4 PG36 PIPELINE The PG36 Pipeline is locat ed in Sec. 36-T7S-R96W, Garfield County, Colorad o and consists of th e following : I ,204 ft of 6 .625" OD , 0.188" wt, API 5L-Gr B Pipeline Mise valves , fittings, meters, EFM s and related equipment The PG36 Pipeline connected the following wells or planned wells : South Parachute TBI 36-23 (Meter# 70126) TBI 36-2 (Future) TBI 36-9BB (Future) TBI 36 -llBB (Future) TBI 36-10 (Future) PH36 PIPELINE The PH36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Colorado and consists of the following : 815 ft of 6.625" OD, 0.188" wt, API 5L-Gr B Pipeline Mise valves , fittings , meters, EFMs and related equipment The PH36 Pipeline connected the followin g wells or planned wells : South Parachute TBI 36-24 (Meter # 70128) Pl36 PIPELINE The PI36 Pipeline is located in Sec. 36-T7S-R96W, Garfield County, Co lorado and consists of the following: 3,105 ft of 4.500" OD , 0.188" wt Pipeline 3,089 ft of6.625" OD, 0.188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The Pl36 Pipeline connected the followin g wells or planned wells: So uth Parachute TBI 36-34 (Meter # 70136) TBI Federal 31 -5 (Meter # 70229) TBI Federal 31 -12 (Meter # 702 28) TBI Federal 31-13 (Meter # 70227) TBI Federal36-16 (Meter # 70226) TBI Federal36-15BB (Future) TBI Federal 31-16BB (Future) TBI Federal 3 1-13BB (Future) 5 PK36 PIPELINE The PK36 Pipeline is located in Sec. 36-T 7S-R96W, Garfi e ld County, Colorado and consists of the following: 13 7 ft of8.625 " OD, 0 .1 88"wt Pipeline 1,666 ft of6.625 " OD , 0 .188" wt Pipeline 1,531 ft of6.625" OD , 0 .188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The PK36 Pipeline connected the following wells or planned wells : South Parachute T BI 36-32 (Meter # 70131) South Parachute TBI 36-33D (Meter# 70132) TBI Federa136-13 (Meter# 70240) TBI Federal 36-14 (Meter# 70241) TBI Federal36-15 (Meter# 70242) PH25 PIPELINE The PH25 Pipeline is located in Se c . 25-T7S-R96W and Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 554ft of 6 .625" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PH25 Pipeline connected the following wells or planned wells: Federal H-25 (Future) Federal25-1 (Future) Federal 25-2 (Meter# 70268) Federal25-7 (Future) Federal 25-9 (Future) PK25 PIPELINE The PK25 Pipeline is located in Sec. 25 and 36-T7S-R96W, Garfi eld County, Colorado and consists of the following: 2,611 ft of 4.500" OD, 0.188" wt Pipeline 3,690 ft of 6.625" OD, 0.188" wt Loop Pipeline Mise valves, fittings, meters, EFMs and related equipment The PK25 Pipeline connected the following wells or planned wells: South Parachute Federal25-32 (Meter # 70143) Federal25-12 (Meter# 70250) Federa125-13 (Meter # 70252) Federal25-1 0 (Meter # 70251) Federal25-11BB (Future) Federal25-IOBB (Future) 6 PN25 PIPELINE The PN25 Pipeline is located in Sec. 25-T7S-R96W, Garfield County, Colorado and consists of the following: 125 ft of 4.500" OD, 0.188" wt Pipeline Mise valves, fittings , meters, EFMs and related equipment The PN25 Pipeline connected the following wells or planned wells: South Parachute Federa125-42 (Meter# 70146) P A30 PIPELINE The P A30 Pipeline is located in Sec. 29 and 30-T7S-R95W, Garfield County, Colorado and consists of the following: 4,562 ft of3.500" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The P AJO Pipeline connected the following wells or planned wells: South Parachute Federal30-14 (Meter# 701 48) Federal20-13 (Future) Federal19-16 (Future) Federal30-1BB (Meter# 70281) PB30 PIPELINE The PB30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 2,441 ft of 6.625" OD, 0.188" wt Pipeline Mise valves, fittings , meters, EFMs and related equipment The PB30 Pipeline connected the following wells or planned wells: DaybreakFederall9-15 (Future) Daybreak Federal 30-2BB (Meter# 70262) Daybreak Federal30-2 (Future) Daybreak Federal19-14 (Future) PD30 PIPELINE The PD30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following: 1,207 ft of 6.625" OD, 0.188" wt Pipeline 4,497 ft of 8.625" OD, 0.188" wt Pipeline 1,232 ft of6.625" OD, 0.188" wt Pipeline Loop Mise valves, fittings, meters, EFMs and related equipment The PD30 Pipeline connected the following wells or planned wells: Federal 30-11 (Future) 7 Federal 30-3BB (Future) Fedcral30-3 (Future) Federa119-14BB (Future) Federal 30-5 (Future) Federal30-5BB (Future) Federal 19-13 (Future) Federal 30-4BB (Future) Federal30-4 (Future) PG30 PIPELINE The PG30 Pipeline is located in Sec. 30-T7S-R95W, Garfield County, Colorado and consists of the following : 118 ft of 4.500" OD, 0 .188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PG30 Pipeline connected the following wells or planned wells: Federa130-9 (Meter # 70269) Federal 30-6 (Future) Federal30-7 (Future) Federal30-8 (Future) PN30 PIPELINE The PN30 Pipeline is located in Sec . 30-T7S-R95W, Garfield County, Colorado and consists of the following: 2,866 ft of 6.625" OD, 0.188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PN30 Pipeline connected the following wells or planned wells: South Parachute Federa130-42 (Meter# 70129) Federal30-.15 (Future) PF31 PIPELINE The PF31 Pipeline is located in Sec . 31 -T7S-R95W and Sec. 36-T 7S-R96W, Garfield County, Colorado and consists of the following: 2,032 ft of 4.500" OD, 0.188" wt Pipeline 2 ,022 ft of6.625" OD, 0.188" wt Pipeline Loop Mise valves, fittings , m eters, EFMs and related equipment The PF31 Pipeline connected the following wells or planned wells: South Parachute Federal31-22 (Meter# 70147) Federal 31 -3BB (Future) Federal31-5BB (Future) Federal 31-12BB (Future) Federal31-6 (Future) 8 Federal 31-7 (Meter# 70255) Federal 31-11 (Meter # 70256) Federal 31-11 BB (Meter# 70257) P A29 PIPELINE The PA29 Pipeline is located in Sec. 29-T7S-R95W, Garfield County, Colorado and consists of the following: 3,308 ft of 4.500" OD, 0.188" wt Pipeline Mise valves, fittings, meters , EFMs and related equipment The P A29 Pipeline connected the following wells or planned wells: South Parachute Federal29-14 (Meter # 70142) South Parachute Federal29-24D (Meter# 70141) Federal20-15 (Future) Federal29-l (Future) Federal 28-4 (Future) PF29 PIPELINE The PF29 Pipeline is located in Sec. 29-T7S-R95W, Garfield County, Colorado and consists of the following: 985 ft of 6.625" OD, 0 .188" wt Pipeline Mise valves, fittings, meters, EFMs and related equipment The PF29 Pipeline connected the following wells or planned wells: South Parachute Federal29-22 (Meter# 70123) Federal29-3 (Meter# 70272) Federal 29-12 (Meter# 70273) 9 Exhibit B REAL PROPERTY ll\TERESTS This Exhibit B is attach ed to and made part of the Assignment, Bill of Sale, and Conveyance dated as of , 2006 by and between Canyon Gas Resources, LLC (as Grantor) and EnCana Oil & Gas (USA) Inc. (as Grantee). Garfield County, Colorado Lease Number: Pending Status: Active Recorded: Not recorded Lease Date: Pending Lessor: USDI BLM Expire Date: Pending Lessee : Canyon Gas Resources, LLC Description: Right-of-Way Grant Legal: T7S-R95W-Sec 29 Sl/2NW1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 29 SW1 /4NE1/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 29 NW114NE114 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 NE/14NE1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 SEl/4NEl /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 NE1 /4SE1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 NW114SE1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 SW1/4SE1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 31 SW1/4NW114 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 NEli4SW1 /4 Garfield County, CO Sixth Principal Meridian Lease Number: COC67720 Lease Date: 06/27 n005 Expire Date: 12/31/2034 Description: Right-of-Way Grant Legal: Status: Active Recorded: Not recorded Lessor: USDI BLM Lessee: Canyon Gas Resources, LLC T7S-R95W-Sec 29 SW114NW1 /4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 29 NWl/4SW114 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 Lot 3 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 Nli2SE1/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 30 SE1 /4NE1/4 Garfield County, CO Sixth Principal Meridian T7S-R95W-Sec 3 I Lot 4 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 SE1/4NEI/4 Garfield County, CO Sixth Principal Meridian T7S-R96W-Sec 25 NE1/4SW J/4 Garfield County, CO Sixth Principal Meridian 10 SCHEDULE 1 RETAINED INTERESTS This Schedule I Retained Interests is attached to and made part of the Assignment and Bill of Sale dated as of February 17, 2006 by and between Canyon Gas Resources, LLC (as Seller) and EnCana Oil & Gas (USA) Inc. (as Buyer). Pursuant to Section 1 of the Purchase and Sale Agreement, Seller is retaining all of its right, title and interest in and to Seller's South Parachute 8" Trunkline gas gathering pipeline and together with the appurtenant easements and pipeline rights-of- way, as shown on the Map attached hereto and made a part thereof (the "Retained Interests"). The Retained Interests Map shows only that portion of the South Parachute 8" Trunkline where it interconnects with the Assets and Pipelines being assigned to Buyer. The South Parachute 8" Trunkline is located on the following easements: 1. United States Department oflnterior Bureau ofLand Management Right-of-Way Grant, Serial No. COC-66335 issued in October 2003 to Canyon Gas Resources, Inc. including, without limitation, certain lands located in Sections 29, 30 and 31, Township 7 South, Range 96 West of Garfield County, Colorado. 2. Right-of-Way Agreement dated August 29, 2003, from Tom Brown, Inc. to Canyon Gas Resources, Inc. covering certain lands in Section 36, Township 7 South, Range 96 West of Garfield County, Colorado. 11 Certificate of Non-Foreign Status Pursuant to Treasury Regulation § 1.1445-2(b)(2)(111), this affidavit is provided by Cantera Resources Holdings, LLC, a Delaware limited liability company, ("~ ~") which Is, directly the sole beneficial owner for U.S. federal income tax purposes, of Canyon Gas Resources, LLC, a Delaware limited liability company ("~ JJJ:;"). Canyon LLC is a disregarded entity, as defined in Treasury Regulation § 1.1445- 2(b)(2)(iil). Section 1445 of the Internal Revenue Code provides that a transferee of a U.S . real property interest must withhold tax If the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To Inform the transferee that withholding of tax is not required upon the disposition of a u.s. real property Interest pursuant to the Agreement, dated as of February 17, 2006 by and between Canyon LLC and EnCana Oil & Gas (USA) Inc., a Delaware corporation, the undersigned hereby certifies the following: 1. Cantera Holdings is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. Cantera Holdings is not a disregarded entity as defined in §1.1445-2(b)(2)(iil); 3. Cantera Holdjngs Employer Identification Number is 84-1575074; 4. Cantera Holdings office address is located at 7400 East Orchard Road, Suite 3250, Englewood, Colorado 80111. Cantera Holdings understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Cantera Holdings. Cantera Resources Holdings, LLC ~ ----, ~ Title: Senior Vice President and Chief Financial Officer Date : Y,~<;.. OPr=RATIONS I Fcrcr. :\160·3 '-''-'t.. 2 420 Of (August 1999) FEB 2 V ED ·I 21 01 FORM APPROVED OMB No. 1004-0136 TBJ ~~ U I ATES Glenwoarl Sp inos Expi res November 30, 2000 DEPARTMENT OF TH E INTE RI OR g0:;r c~~8 A~ i53.ease Serial No. BUREAU OF LAND MANAGEMENT C -010075A 6. If Ind ian, Allottee or Tribe Name APPLICATION FOR PERMIT TO DRILL OR DEEPEN ---... 7. If Unit orCA Agreement . Name and No. 1a. Type ofWork [KJ DRILL D REENTER --- 8. Lease Name and Wet! No . 1b.TypeofWell Ooil Well [!)Gas Well O other [!]single Zone O Mult iple Zon e S Parachut e Federal 30-42 2. Name of Operator 9. API We ll No. Tom Brown, I nc . --... - 3a. Add res s 13b. Phone No . (include Jrea code) 10. Fi eld and Poo l, cr Explora tory 555 1 7th Street, Suit e 1850, Denver, CO 80202 303-260-5000 Ru lison 4. Location of We ll (R.epon locacion clearly Jn d in JccordJnce wich any Scace Requirements.*) 11. Sec., T .. R., M., or Blk. and Survey or Area 1,146' FSL 2 ,391 ' FWL SE /4 SW/4 Sec. 30 T 7S R 95W At proposed production zone Same 14 . Di stance in miles and direc tion from nea rest town or post office . 12. Coun ty or parish 13. Sta te 4 miles south of Battlement Mesa. Colorado Garfield co 15. Distance from proposed location to nearest 16. No . of acres in lease 17. Spacing Unit dedicated to this well property of lease line , f!. (Also neares t Drig , unit 120 line. if any) 1,146' Per COGCC Orde r 139-28 18. Di sta nce from proposed loca tion to nearest 19. Proposed depth 20. BLM/BIA Bond No . on file well, drilling , com pl eted or appli ed for, on this 1,500' lease. ft. 5,900' #ES0-183 2 1. Elevations (Show whe ther OF, KDB, RT. GL , etc .) 22. Approximate date wo rk will start : 23 . Estimate d duration 6,374' GR 03/30/01 45-60 days drlg + completion 24. Attachments The followi n g, completed i n accordance w ith the requirements of Onshore Oil and Gas Ord er No. 1. shall be at.tached to t his form: 1. Well plat certified by a registered surveyor. 2. A Drilling Plan. 3. A Surface Use Pl an (if the location i s on National Forest System Lands, the SUPO shall be filed with the appropriate Forest Service Office). 4. Bond to cover t h e o p erations u nless covered by an exi sting bond on file (see Item 20 above ). 5. Operator certification . 6. Such other site specific i nformat ion and/or p lans as may be required by the authori zed officer. 25. Signatu re ~:·,,Name (Princedityped) David F. Banko !Da te February 26, 2001 Tille Agent for Tom Brown, Inc. Application approval does not warrant or certify that the ap plicant holds legal or equitable title to those rights i n the subject lease which would entitle the applica nt to conduct ope rations thereon. Cond ition a of approval, if any, are attached. Title 18 U.S.C. Section 1001 an d Title 43 U.S .C. Section12 12, make it a crime lor any person knowing ly and willfu lly to make to any department or age ncy of the United States any fal se. fictitious , or fraudulent statements or representations as to any ma tter within its jurisdiction. SUA SEC. 30, T. 7 s., R. 95 W. OF THE 6TH .P.M. I . F!'L.AT =*I LOCATION PLAT £ ~ALUM CAP -3 &--5011 0 1000' ,. v ~-- N N ..- .q. <.0 N w ,....... N ('. ;'1' 0 0 z GLO BRASS CAP 2391' .it. ~ i# 1146 1 iOM BI:<OWN INC. I=EOEI:<AI.. #J~-42 GINO. EL.EV . ~J14' F=AO e~ev. ~J1J.S' CLO BRASS CAP GRAPH IC SCALE IN FEET , I!N04 • 'ooo nrr -LEGEND- @ ST ANOARD LOCATION OF GLO SECTION CORNER S -0-CORNERS FOUND ®WELL LOCATION STAK ED L ~ ~ .. 1111V . I II N88 00 53 W 2622.09 I 1111 v THIS WELL LOCATION PLAT WAS PREPARED FOR TOM BROWN INC. TO LOCATE THE FEDERAL #30-42, 1146 FEET FROM THE SOUTH LINE AND 2391 FEET FROM THE WEST LINE IN THE SE1/4 SWf/4 OF SECTION 30, T. 7 S., R. 95 W. OF THE 6TH P.M. GARFIELD COUNTY, COLORADO. SURVEYOR'S CERTIFICATE REFERENCE DOCUMENTS 1) T.7 S., R.95 W., 6lli P.M. GlO PLAT 2) U.S.G.S. QVAO: PARACHUTE, CO 3) ELEVATIONS BASED ON N.A.Y.D. 1988 4) 'h£LL MEASURED 90' FROM SECTION UNE ~0 • 7'j ~~. 925 •• • -~ ~ ~ <I~ • ~ " . z vV ••• .. •••• ~~ ~ CONS>i~UCilON S>UI:<VEYS>, INC. ///tt%4L LA.~~~,,,,~ ~~12 S>UNI:<IE>E BL.vO suRVEYED: 04/20/99 scALE: ,. -10oo· S>IL. i, CO 81~$12 DRAFTED: 04/.30/99 DWG : BROWN\FED30-42 (~1~)81~·$11SJ REVISED: 02 2 1/01 SHEET: 1 OF 7 Tom Brown, lnc. South Para chute Federal 30-42 1,146' FSL, 2,391' FWL (SE/4 SW/4) Sec. 30 TIS R95W Garfield County, Colorado Federal Lease C-0 1 0075A DRILLING PROGRAM SURF ACE FORMATION-Wasatch -Fresh water possible above 500' WELL SPACING -640 ACRES PER COGCC ORD ER 139-28 (UP TO 16 WELLS/640 ACRES) GROUND ELEVATION-6,374' OR DEPTHS OF ESTIMATED FORMATION TOPS -(Water, oil, gas and/or ot her mineral -bearing formations) Wasatch Williams Fork Cameo Rollin s 0' 2 ,~84' 5,272' 5,722' Sandstone, shales and silts tones, some water bearing Sandstones, shales and siltstones, some water, oi l and/or gas bearing Coal and shales Sandstones , shales and siltstone s, some water, oil and/or gas bearing TOTAL DEPTH 5,900' CASING PROGRAM Depth Hole Casing Casing Weight and Cement Diameter Diameter Grade 0'-1,100' I I" 8-5/8" 32# J-55 STC new To surface (±235 sxs Ha ll Li te and ±2 1 0 sxs "G") 1,100'-TD 7-7/8" 5-112" 17# J-55 LTC new Lead: 335 sxs 75/25/8 Poz Tail: ±360 sxs 50/50/2 Poz HS Yields: Hall Lite yield = 1.69 ff l sx 75/25 /8 Poz yield = 2.68 ft 3/sx 5015012 Poz y ield 2.68 retsx G" yield 1.15 fetsx • Actual cement volume to be determined by caliper log. Page 2 DRILLING PROGRAM SURF ACE CASING AND CENTRALIZER DESIGN See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Drilling Plan PRESSURE CONTROL (See attached schematic diagram) See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Penn it to Drill Addendum -Drilling Plan MUD PROGRAM See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Drilling Plan AUXI LIARY EQUIPMENT See Environmental Assessment #C0-78-98-087, Parach ute/Battlement j\tfesa Natural Gas Drilling Project, dated Atfarc/1 12, 1999, Application for Permit to Drill Addendum -Drilling Plan LOGGING, CORING TESTI NG PROGRAM See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Drilling Plan ABNORMAL CONDITIONS See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Penn it to Drill Addendum -Drilling Plan ANTICIPATED START DATE March 19,2001 COMPLETION See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natu ral Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Drill ing Plan T om Brown, Inc. South Parachute Federal 30-42 1,146' FSL, 2,391' FWL (SE/4 SW/4) Sec . 30 T7S R95W Garfield County, Colorado Federal Lease C-010075A SURF ACE USE PLAN WELL LOCATION AND INTRODUCTION: The proposed surface location is I, 146 ' FS L 2,391' FWL of Sec . 30. The wellsite was surveyed and staked on April 28, 1999 by Construction Surveyors, Inc. at a site that was geologicall y and legally acceptable. An onsite meeting was held on April 28, 1999, attending were Bureau of Land Management-Bob Elderkin and Leonard Coleman, Co lorado Division of Wildlife-John Broderick, Construction Surveys, Inc. -George Bower, Mike Brady Construction -Joe Weaver, Metcalf Archaeology -Carole Graham, Tom Brown, Inc. -Dav id Banko . The Glenwood Springs Resource Area Manager, aka Authorized Officer (AO), and/or his/her authorized representative will be notified 48 hours prior to commencing construction of t he drill s ite, 48 hours prior to completion of the construction activities. These meetings will take place with the operator and dirt contractor present. The above will be contacted 48 hours prior to commencing reclamation work. The AO 's representative is Dan Sokal , ph one (970) 947-2800. DIRECTIONS TO LOCATION: From Parachute , Co lorado , exit I-70 and take frontage road on the north side of I-70 for 2.4 mi les, then crosses over to the south side for 1.3 miles to the Una ra il road crossing at County Road 300; head south and east on County Road 300 for approx imately 1.8 miles to dirt road heading east; continue on this road as it heads east and north for approximately 4 miles (passed existing gas well); at the forks, take left-hand fork, then the right-hand fork, then the left-hand for, then the left hand fork; at the new construction on the west side of the road, tum left (west); continue on new construction for 0 .3 miles to location . I) EXISTING ROADS See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Surface Use Plan . 2) PL.A3\~ED ;\CCESS ROAD S-.: 0 .3' -rew c-onstruction A) Ap_proximatcly 0.3 mi1cs of new access road will be consuucted. See Environmental Assessment #C0-78-98-087, Parachute/Ba ttlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Penn it to Drill Addendum -Surface Use Plan. Page 4 SURF ACE USE PROGRAM 3) LOCATION OF EXISTING WELLS Within a 1-mile radius Drilling Abandoned Proposed Disposal injection Shut-In Producing None None T7S R95W None None TIS R95W Sec. 30 NW/4 NW/4 Sec. 29 SE/4 N'W /4 Sec. 30 NE/4 NE/4 NW/4 SE/4 Sec. 31 NW/4 NW/4 SW/4 NE/4 4) LOCATION OF EXISTING PRODUCING FACILITIES OPERA TED BY Tom Brown, Inc. Within one mi le: T7S R95W Sec . 29 SE/4 NW/4 Wells and pipelines Sec. 30 NE /4 N E/4 NW/4 SE/4 Sec. 31 NW/4 NW/4 SW /4 NE/4 N EW PRODUCTION FACILITIES PROPOSED See En vironmental Assessment #C0-78-98-087, Parachute/Baulemenc lvfesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Swface Use Plan. 5) LOCATION OF WATER SUPPLY See Environmental Assessment #C0-78-98-087, Parachute/Battlement !vfesa Natural Gas Drilling Project, dated i\1/arch 12, 1999, Application for Penn it to Drill Addendum -Swface Use Plan. 6) SOURCE OF CONSTRUCTION MATERIALS See Environmental Assessment #C0-78-98-087, Parachute/Battlement lvfesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Swface Use Plan . 7) WAS TE DISPOSAL See Environmental Assessment #C0-78-98-087 , Parachute/Battlement 1'r-fesa Natural Gas Drilling Project, dared March 12, 1999, Application for Permit to Drill Addendum -Surface Use Plan . 8) ANCILLARY FACILITIES No ancillary facilities will be necessary. 9) WELLS ITE LAYOUT See Environmental Assessment #C0-78-98-087, Parachute/Battlement i'v!esa Natural Gas Drilling Project, dat ed March 12, 1999, Application for Permit to Drill Addendum -Swface Use Plan. 10) SURFACE RESTORATION See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Permit to Drill Addendum -Surface Use Plan. Page 5 SURF ACE USE PROGRAM II) GENERAL INFORMATION See Environmental Assessment #C0-78-98-087, Para chute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Penn it to Drill Addendum -Surface Use Plan. G) Mineral Lessor-Bureau of Land Management H) Surface Owner Drill site -Bureau of Land Management Access -Bureau of Land Management I Larry Klebold I Tom Brown, Inc. I) Proximity of water, occupied dwellings or other features -Dry Creek -0.4 miles south of location. J) Archaeo logica l, cultural and historical infcinnation has been completed and submitted separately by Metcalf Archaeology. See Environmental Assessment #C0-78-98-087, Parachute/Battlement Mesa Natural Gas Drilling Project, dated March 12, 1999, Application for Pennit to Drill Addendum -Surface Use Plan. Page 6 SURF ACE USE PROGRAM 12) LESSEE'S OR OPERATOR'S REPRESENTATIVE: Operator Corporate Office Tom Brown, Inc. Corporate Office: 555 17th Street, Suite 1850 Denver, CO 80202-3918 (303) 260-5000 Attn : Dave Petrie -Regulatory Mgr Matt Rohret-Drlg Mgr Corky Vickers-Prod Mgr Brant Gimmeson -Env Mgr Adam Sayers -Sr. Engr Field Office Tom Brown, Inc. 2764 Compass Drive, Suite 203 Grand Junction, Colorado 81506-8746 (970) 257-0810 Blake Roush -Field Superintendent Permit Agent Banko Petroleum Management, Inc. 1200 17th Street, Suite 2310 Denver, CO 80202 * David F. Banko -Agent (303) 820-4480 e-mail: david@bankol.com Kathy Schneebeck-Engineering Assistant (303) 820-4480 e-mail: kathys@bankol .com * Contact to arrange on-site meeting and for any questions or comments regarding this permit. 13 ) CERTIFICATION: I hereby certify that I, or persons under my direct supervision, have inspected the drill site and access road; that I am familiar with the conditions which presently exist; that the statements made in this plan area, to the best of my knowledge, are true and correct; and that £be work associated with the operations proposed herein will be performed by Tom Brown, Inc. and its contractors and sub-contractors in conformity with this plan and conditions under which it is approved. This statement is subject to the provisions of 18 U.S .C. I 001 for the filing of fa lse statements. February 26, 200 I Operator Representative or Agent for Tom Brown, Inc. Map to Accompany APPLICATION FOR PERM IT TO DR ILL Access Road Tom Brown, Inc. Parachu te Federa l 30-42 SEi4 SW/4 Sec. 30 T7S R95W Garfie ld County. Co lorado Federal Lease C-0 I 0075A LEGEND <==== ;-Jew Construction --==== Ex isting Road (tee) Ex isting Road (BL\-1) County Road iOM e~OWN INC. ~=oep:cAL == ~~-4 2 Form 10 Certification of Clearance and/or Change of Operator Page 1 of 1 Ol**lr llftnnllllon Ope-Number. 10011111 .-me & Mclnm: ENCANA OIL & OA8 (us.t.) INC 370 17TH STSTE 17001\TTN: DIANE I!ILESZHI!R DENVER. CO 8020WeS2 CocMct HlllrMiftd T ... p~o• Milne: JOYCE MCGOUGH Pllono ~ (720)87&.52811 f.allly_ld F• .._,mber: (720)876-e20& em.u. li;:::::;:::;:;:.=..;:.·-~·-----·------------·-----·--------·---. -----·-- Locallon lnfonndfon: Fld~ID: Field Code. 76400 N'l~. 05 -045-07740 FIKifi!Y 10: 81181111 Fleld Nlm•: RUUSON ,.,.. Nllm•~ SOUTH PARACHUTE FEOEIW. • 30-42 QTRQTR: SESW SEC : ;Ill TWP. 7S RNG:'J/HI Mtllldl.,tll u • l I I! ,, J r~ I! A ';i-r I t ,! I :I ,& ~ i ~ ,-t I f t it .~ il 8 Ji , , , ~ i 'i I 5 ; • 'l ~ I ~ I i • • 430814 ~5 n«~ 11119118 P5 PO 501. rt1 PARACHUTE FEOEAA :so-42 ESW ~ ..s IMW ULISON N:K ; • } t i' , ,1 , I ~ I" ~ I i ~ I • ,i , i I .. l A ~ il • 4:t08114 :ANYON Gl<!j RESOURCES INC 3980 ~ 110110 N CEN I'RAL EXPWV STE 800 A N;TE ~!'SON DALLAS TX 7521111 214 110-8228 Submftled ENCANA OIL & GAS by. (USA) IN /tflplav::. SHAAP. OON Sullnllled REGULATORY Tile: ANAI.YSliLT AAII'IIIItd Title: Sliliia: APPRQl/1:0 Submit Signed: v .. ~ Stgnecl: - ~ lf.Z.(J\J~P M P/1"-\ 6;: '/(( C4.C"Au-uP P.4.0•" ..,......,, t http://sterling/Infosys/COOIS _ ToolsiD<>cumentReview/view _ approved.cfm ?doc_ own= 1430884&CFID=33044. .. 6/2/20 ll From:Cumberland, Dan To:Lorne Prescott Subject:ROW for PN30 - Kiebold Date:Tuesday, February 14, 2012 2:38:01 PM Attachments:ROW for Kiebold Access Road.pdf Hi Lorne - I got redirected to the correct land man, and he indicted that the first couple of miles of the road to PN30 is county road. Here's the ROW for the Kiebold property; I asked about Daybreak Realty, so stay tuned. Thanks, Dan Cumberland Project Manager, IT Tech Services Encana Oil & Gas (USA) Inc. 720.876.5361 Take a closer look: www.encana.com Please note some Encana offices are closed the first and third Friday of each month. This email communication and any files transmitted with it may containconfidential and or proprietary information and is provided for the use of theintended recipient only. Any review, retransmission or dissemination of thisinformation by anyone other than the intended recipient is prohibited. If youreceive this email in error, please contact the sender and delete thiscommunication and any copies immediately. Thank you. http://www.encana.com . '. • STATE OF COLORADO COUNTY OF GARFIELD ) EASEMENT AND ROAD USE AGREEMENT • ) KNOW BY ALL MEN BY THESE PRESENTS ) THAT, Larry A. Klebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hereinafter referred to as "Owners", are the owners of the following described lands ("Owners' Lands") located in Garfield County, Colorado, to wit: Township 7 South. Range 96 West Section 35: NE/4.N/2SE/4, E/2NW/4 Section 36: W/2SW/4 Garfield County, Colorado and TBI Production Company, 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to as "TBI" desires to acquire an easement across Owners' Lands for ingress and egress to and from certain lands located near the above described property on which TBI will be conducting oil and gas drilling and/or production operations, hereinafter referred to as "TBI Properties"; NOW, THEREFORE, for and in consideration ofTEN DOLLARS ($10.00) and other good and valuable considerations, the receipt and sufficiency of which being hereby acknowledged, the parties hereby agree as follows: I. Subject to the terms and conditions set forth herein below, Owners hereby grant, bargain, sell, and convey to TBI a private, terminable easement on, over and across the Owners' Lands at the location set forth in paragraph 2 below, and hereafter referred to as "the Access Road", for the purpose of ingress and egress to and from the TBI Properties for the sole purpose of conducting oil and gas operations on the TBI Properties. 2. The easement granted hereby shall be and is hereby limited to fifteen (15) feet on each side of the center line of the existing private road across Owners' Lands as shown on the attached Exhibit A; provided that the location of the existing private road shall be changed to avoid the houses in the SE/4 of Section 26, with the center line of the easement hereby granted to be located at least 750 feet from such dwellings; 3. TBl shall, at its sole cost and expense, construct, improve and maintain the Access Road to meet the following specifications: (a) The Access Road shall be constructed and maintained with an all weather surface (excluding hard surfacing) and shall be so completed within six weeks after the first use by TBI of the easement granted hereby; Page 1 • • (b) Culverts at ditch and drainage crossings and barrow pits shall be installed where the Access Road crosses ditches or drainages; ( c ) The Access Road shall, at all times, be properly graded and drained and adequate dust control methods using magnesium chloride water shall be utilized by TBI in the maintenance of such road. (d) Cattle prooffences shall be constructed and maintained by TBI on both sides of the Access Road; (e) Permanent gates and cattle guards shall be installed at each point where the Access Road intersects perimeter and cross fences on Owners' Land, at Owners' election. If Owners or TBI choose to lock any gates on the Access Road, keys will be provided to TBI or Owners by the party locking the gate; (f) TBI shall reclaim all areas on both sides of the Access Road due to road building. 4. As further consideration for the easement granted hereby, TBI agrees (a) To upgrade, to the specifications of the Access Road, the existing road to the residence now on Owners' Land and to build, at no cost to Owners and to the specifications of the Access Road, one single track spur road for Owners' access to a future home site on Owners Land in the W\2NE/4 orE/2NW/4 of Section 35 to be designated by Owners. (b) If TBI removes snow from the Access Road, it will concurrently remove snow from the road or roads identified in (a) above. 5. The Access Road and the easement granted hereby shall be used solely by TBI, its agents, employees, contractors and subcontractors for the purpose of oil and gas drilling and/or production operations. Page2 • • 6. TBI, it agents, employees, contractors and subcontractors shall be and are hereby prohibited from hunting on Owners' Lands. 7. TBI's use of the Access Road shall be at its sole risk and TBI shall indemnify and hold Owners harmless for any injuries and or losses caused by or arising out of the construction, maintenance or use of the Access Road by TBI, its agents, employees, contractors or subcontractors. 8. Owners and Owners' agents, licensees, permittees and/or assigns, shall have the right to use the Access Road, which use shall be at Owners' sole risk, and Owners shall indemnify and hold TBI harmless against all and any claims for injuries and/or losses which result from Owners' use of the Access Road except those attributable to a breach of the construction or maintenance obligations ofTBI. 9. The easement granted hereby shall terminate at such time as the Access Road shall no longer be used by TBI its' heirs, successors and/or assigns for oil and/or gas drilling and/or producing operations, and upon such termination TBI shall execute any documentation necessary in Owners' opinion to fully evidence of record the termination of all rights ofTBI with respect to Owners' Lands and the subject easement. Upon such termination, Owners shall have the option, but not the obligation, to take over the maintenance of the Access Road. Should Owners elect not to take over maintenance of the Access Road, TBI shall restore the surface of the Access Road to its original grade and vegetation. 10. This agreement is subject to the terms of that certain Letter Agreement dated October 24, 1997, by and between Owners and TBI which sets forth certain additional monetary and other considerations to be paid by TBI to Owners for the continued use and enjoyment of the Easement granted hereunder, which Letter Agreement is by this reference fully incorporated herein and made a part hereof. II. This Agreement, together with the above referenced Letter Agreement dated October :1'/ 1997, constitutes the full and final agreement between the parties which is subject to modification only by the written agreement of the parties hereto. Page3 • • This Agreement shall constitute a convenant running with the lands and shall inure to and be binding to the parties hereto, their heirs, successors and/or assigns. -I.W IN WITNESS WHEREOF, this instrument is executed effective as ofthed4 day of October, 1997. Larry Karen Klebold ~104J1)J$JJ Qd TBI Production Company By: Richard B. Porter, Attorney-in-Fact Page4 • • CORPORATE ACKNOWLEDGEMENT STATE OF COLORADO ) ) CITY AND COUNTY OF DENVER ) The foregoing instrument was acknowledged before me by Richard B. Porter, as Attorney-in- Fact for Tom Brown, Inc. this :J.,fkv day of October, 1997. My Commission Expires: -~ S~TE OF COLORADO CO TY OF Otfk.nM_) ) ) ) Notary Public dcJA11f, 1!~~ The foregoing instrument was acknowledged before me by Larry A. Klebold and Karen Klebold this .J.J.fwday of October, 1997. WITNESS my hand and official seal. Notary Public dbJ-v £k'M'( Page 5 • / Exhibit "A" Attached to and made a part of that certain Easement and Road Use Agreement dated October _, 1997 by an between Larry A Klebold and Karen Klebold, husband and wife,( Owner) and TBI Production Company, "TBI": / Exhibit "A" Attached to and made a part of that certain Easement and Road Use Agreement dated October _, 1997 by an between Larry A Klebold and Karen Klebold, husband and wife,( Owner) and TBI Production Company, "TBI": ·-·-·----'------- • 1111111 IIIII 11111111111• 1111111 Ill 11111111 516739 11/20/1997 03:04P 81043 P110 ALSDORF 1 of 2 R 11.00 D 0.00 GARFIELD COUNTY CO RIGHT OF FIRST REFUSAL TO PURCHASE REAL ESTATE STATEOFCOLORADO § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF GARFIELD § THAT WHEREAS TBI Production Company, 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to as "TBI", owns the following described lands located in Garfield County, Colorado: Townshio 7 South. Range 96 West Section 25: SE/4SW/4 Section 36: E/2NW/4, S/2NE/4, N/2SE/4, NE/4SW/4 Garfield County, Colorado which lands are hereinafter referred to as the "Option Lands"; and WHEREAS Larry A. Klebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hereinafter referred to as the "Klebolds", are the owners of certain lands located adjacent or contiguous to the "Option Lands"; and · WHEREAS TBI and the Klebolds have entered into that certain unrecorded Letter Agreement dated October 24, 1997 under which TBI has agreed to extend to the Klebolds a "Right of First Refusal" to purchase all of TBI' s right, title and interest in and to the surface estate in the Option Lands: NOW THEREFORE, for and in consideration ofTEN DOLLARS ($10.00) and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, TBI hereby grants and conveys to the Klebolds a "Right ofFirst Refusal" to purchase the surface estate in and to the Option Lands under the following terms and conditions: L At such time as TBI elects to sell, transfer or otherwise dispose of its ownership interest in the surface estate in the Option Lands, TBI shall notifY the Klebolds in writing of such intention which notice shall set forth TBI's purposed purchase price for the sale of the Option Lands. 2. The Klebolds shall have thirty (30) days from receipt ofTBI's notice to advise TBI in writing of their election to exercise their "Right of First Refusal" and to purchase the Option Lands for the purchase price established by TBI or to finalize negotiations with TBI for the purchase of the Option Lands at a different price. 3. In the event the Klebolds elect to exercise their "Right of First Refusal", or in the event they reach an agreement with TBI for the purchase of the Option Lands at an alternate price, TBI and the Klebolds shall enter into a mutually acceptable formal Contract to Buy and Sell Real Estate which provides for a closing on the transaction within ninety (90) days from the date of the execution of such Contract 4. In the event the Klebolds elect not to exercise their "Right of First Refusal" to purchase the surface estate in the Option Lands, or in the event they are unable to close the transaction within the above referenced time periods, TBI shall be released from all obligations to sell the Option Lands to the Klebolds and shall be entitled to sell the Option Lands to a ready, willing and able buyer at any negotiated price, provided that such third party sale is concluded and the transaction closed within 365 days after the date ofTBI's first notice to the Klebolds of its intent to sell as required under paragraph 1 above. In the event TBI fails to conclude and close on the sale of the Option Lands within said 365 day time period; the Klebolds "First Right of Refusal" to purchase the surface estate in.the Option Lands as provided herein shall again attach to said lands. Receivod -Denver DEC 1 " 1997 • 5. The Klebolds "First Right of Refusal " to purchase the Option Lands, as created hereunder, shall not apply to TBI's sale of the Option Lands as part of a sale of all, or a portion of its assets, in the nonnal course and conduct of its oil and gas business. 6. The "First Right ofRefusal" to purchase the Option Lands granted to the Klebolds hereunder is specifically limited to the purchase of TBI' s ownership interest in the surfuce estate in and to the Option Lands and TBI specifically excludes and reserves unto itself all its right, title and interest in and to the mineral estate in and under the Option Lands with the right to explore, develop, extract and remove such minerals without limitations. 7. The "First Right of Refusal" to purchase the Option Lands granted to the Klebolds hereunder is personal in nature and shall not be assigned or conveyed to a third party without the express written consent from TBI. 8. The rights granted hereunder shall not operate as, and nothing set forth herein shall be construed as or shall constitute, a restriction on TBI' s absolute right to use the surfuce of the Option Lands for any purpose regardless of whether or not such use diminishes the value of such surface estate, provided however, that TBI shall not impose conservation or other restrictions, enter into any agreement with a private party or governmental agency or consent to a land use regulation proposed by any governmental agency, which will continue to burden and/or restrict the use of the surface estate in the Option Lands after TBI disposes of its interest in said lands or which otherwise creates, constitutes or imposes a permanent restriction on the use of the surface estate in the Option Lands. · IN WITNESS WHEREOF this instrument is executed this 6"'-day of November, 1997, to be effective as of the 241h day of October, 1997. TBI Production Company By Richard B. Porter, Attorney-in-Fact CORPORATE ACKNOWLEDGMENT STATE OF COLORADO § § CITY AND COUNTY OF DENVER § The ibregoing instrument was acknowledged before me by Richard B. Porter, as Attorney-in-Fact for TBI Production Company, this 6th day ofNovember, 1997. WITNESS my hand and official seal. My Commission Expires: MY COMMISSION EXPIRES: 2·12·99 Notary Public • • • -..• '-.... ~., ... • RIGHT OF FIRST REFUSAL TOPURCHASEREALESTATE STATE OF COLORADO § § KNOW ALL l\1EN BY THESE PRESENTS COUNTY OF GARFIELD § }61;( thi'J? CC; C0331J'OOIO C.o.338oo1IA THAT WHEREAS TBI Production Company, 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to as "TBI'', owns the following described lands located in Garfield County, Colorado: Township 7 South. Range 96 West Section 25: SE/4SW/4 Section 36: E/2NW/4, S/2NE/4, N/2SE/4, NE/4SW/4 Garfield County, Colorado which lands are hereinafter referred to as the "Option Lands"; and WHEREAS Larry A Klebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hereinafter referred to as the "Klebolds", are the owners of certain lands located adjacent or contiguous to the "Option Lands"; and WHEREAS 1BI and the Klebolds have entered into that certain unrecorded Letter Agreement dated October 24, 1997 under which TBI has agreed to extend to the Klebolds a "Right of First Refusal" to purchase all ofTBI's right, title and interest in and to the surface estate in the Option Lands: NOW THEREFORE, for and in consideration ofTEN DOLLARS ($10.00) and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, TBI hereby grants and conveys to the Klebolds a "Right ofFirst Refusal" to purchase the surface estate in and to the Option Lands under the following terms and conditions: 1. At such time as TBI elects to sel~ transfer or otherwise dispose of its ownership interest in the surface estate in the Option Lands, TBI shall notify the Klebolds in writing of such intention which notice shall set forth TBI' s purposed purchase price for the sale of the Option Lands. '\.2. The Klebolds shall have thirty (30) days from receipt ofTBI's notice to advise TBI in writing of 'their election to exercise their "Right of First Refusal" and to purchase the Option Lands for the pUrchase price established by TBI or to finalize negotiations with TBI for the purchase of the Option Lands at a different price. 3. In the event the Klebolds elect to exercise their "Right of First Refusal", or in the event they reach an agreement with TBI for the purchase of the Option Lands at an alternate price, TBI and the Klebolds shall enter into a mutually acceptable formal Contract to Buy and Sell Real Estate which provides for. a closing on the transaction within ninety (90} days from the date of the execution of such Contract. 4. In the event the Klebolds elect not to exercise their "Right of First Refusal" to purchase the surface estate in the Option Lands, or in the event they are unable to close the transaction within the above referenced time periods, TBI shall be released from all obligations to sell the Option Lands to the Klebolds and shall be entitled to sell the Option Lands to a ready, willing and able buyer at any negotiated price, provided that such third party sale is concluded and the transaction closed within 365 days after the date ofTBI's first notice to the Klebolds of its intent to sell as required under paragraph I above. In the event TBI fails to conclude and close on the sale of the Option Lands within said 36S day time period, the Klebolds "First Right of Refusal" to purchase the surface estate in the Option Lands as provided herein shall again attach to said lands. • • • 5. The Klebolds "First Right of Refusal " to purchase the Option Lands, as created hereunder, shall not apply to mrs sale of the Option Lands as part of a sale of all, or a portion of its assets, in the normal course and conduct of its oil and gas business. 6. The "First Right of Refusal" to purchase the Option Lands granted to the Klebolds hereunder is specifically limited to the purchase of TBI's ownership interest in the surface estate in and to the Option Lands and mi specifically excludes and reserves unto itself all its right, title and interest in and to the mineral estate in and under the Option Lands with the right to explore, develop, extract and remove 8uch minerals without limitations. 7. The "First Right of Refusal" to purchase the Option Lands granted to the Klebolds hereunder is personal in nature and shall not be assigned or conveyed to a third party without the express written consent from mi. 8. The rights granted hereunder shall not operate as, and nothing set forth herein shall be construed as or shall constitute, a restriction on mrs absolute right to use the surface of the Option Lands for any purpose regardless of whether or not such use diminishes the value of such surface estate, provided however, that mi shall not impose conservation or other restrictions, enter into any agreement with a private party or governmental agency or consent to a land use regulation proposed by any governmental agency, which will continue to burden and/or restrict the use of the surface estate in the Option Lands after mi disposes of its interest in said lands or which otherwise creates, constitutes or imposes a permanent restriction on the use of the surface estate in the Option Lands. IN WITNESS WHEREOF this instrument is executed this 6111 day of November, 1997, to be effective as of the 24111 day of October, 1997. mi Production Company By Richard B. Porter, Attorney-in-Fact CORPORATE ACKNOWLEDGMENT STATE OF COLORADO § § CITY AND COUNTY OF DENVER § The foregoing instrument was acknowledged before me by Richard B. Porter, as Attorney-in-Fact for TBI Production Company, this 6th day of November, 1997. WITNESS my hand and official seal. My Commission Expires: MY COMMISSION EXPIRES: 2·12·99 Notary Public • STATE OF COLORADO COUNTY OF GARFIELD ) EASEMENT AND ROAD USE AGREEMENT • ) KNOW BY ALL MEN BY THESE PRESENTS ) THAT, Larry A. Klebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hereinafter referred to as "Owners", are the owners of the following described lands ("Owners' Lands") located in Garfield County, Colorado, to wit: Township 7 South. Range 96 West Section 35: NE/4,N/2SE/4, E/2NW/4 Section 36: W/2SW/4 - Garfield County, Colorado and TBI Production Company, 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to as "TBI" desires to acquire an easement across Owners' Lands for ingress and egress to and from certain lands located near the above described property on which TBI will be conducting oil and gas drilling and/or production operations, hereinafter referred to as "TBI Properties"; NOW, THEREFORE, for and in consideration ofTEN DOLLARS ($10.00) and other good and valuable considerations, the receipt and sufficiency of which being hereby acknowledged, the parties hereby agree as follows: 1. Subject to the terms and conditions set forth herein below, Owners hereby grant, bargain, sell, and convey to TBI a private, terminable easement on, over and across the Owners' Lands at the location set forth in paragraph 2 below, and hereafter referred to as "the Access Road", for the purpose of ingress and egress to and from the TBI Properties for the sole purpose of conducting oil and gas operations on the TBI Properties. 2. The easement granted hereby shall be and is hereby limited to fifteen (15) feet on each side of the center line of the existing private road across Owners' Lands as shown on the attached Exhibit A; provided that the location of the existing private road shall be changed to avoid the houses in the SE/4 of Section 26, with the center line of the easement hereby granted to be located at least 750 feet from such dwellings; 3. TBI shall, at its sole cost and expense, construct, improve and maintain the Access Road to meet the following specifications: (a) The Access Road shall be constructed and maintained with an all weather surface (excluding hard surfacing) and shall be so completed within six weeks after the first use by TBI of the easement granted hereby; Page 1 • • (b) Culverts at ditch and drainage crossings and barrow pits shall be installed where the Access Road crosses ditches or drainages; ( c ) The Access Road shall, at all times, be properly graded and drained and adequate dust control methods using magnesium chloride water shall be utilized by TBI in the maintenance of such road. (d) Cattle proof fences shall be constructed and maintained by TBI on both sides of the Access Road; (e) Permanent gates and cattle guards shall be installed at each point where the Access Road intersects perimeter and cross fences on Owners' Land, at Owners' election. If Owners or TBI choose to lock any gates on the Access Road, keys will be provided to TBI or Owners by the party locking the gate; (f) building. TBI shall reclaim all areas on both sides of the Access Road due to road 4. As further consideration for the easement granted hereby, TBI agrees (a) To upgrade, to the specifications of the Access Road, the existing road to the residence now on Owners' Land and to build, at no cost to Owners and to the specifications of the Access Road, one single track spur road for Owners' access to a future home site on Owners Land in the W\ZNE/4 or E/2NW/4 of Section 35 to be designated by Owners. (b) If TBI removes snow from the Access Road, it will concurrently remove snow from the road or roads identified in (a) above. 5. The Access Road and the easement granted hereby shall be used solely by TBI, its agents, employees, contractors and subcontractors for the purpose of oil and gas drilling and/or production operations. Page 2 • • 6. TBI, it agents, employees, contractors and subcontractors shall be and are hereby prohibited from hunting on Owners' Lands. 7. TBI's use of the Access Road shall be at its sole risk and TBI shall indemnify and hold Owners harmless for any injuries and or losses caused by or arising out of the construction, maintenance or use of the Access Road by TBI, its agents, employees, contractors or subcontractors. &. Owners and Owners' agents, licensees, permittees and/or assigns, shall have the right to use the Access Road, which use shall be at Owners' sole risk, and Owners shall indemnify and hold TBI harmless against all and any claims for injuries and/or losses which result from Owners' use of the Access Road except those attributable to a breach of the construction or maintenance obligations of TBI. 9. The easement granted hereby shall terminate at such time as the Access Road shall no longer be used by TBI its' heirs, successors and/or assigns for oil and/or gas drilling and/or producing operations, and upon such termination TBI shall execute any documentation necessary in Owners' opinion to fully evidence of record the termination of all rights ofTBI with respect to Owners' Lands and the subject easement. Upon such termination, Owners shall have the option, but not the obligation, to take over the maintenance of the Access Road. Should Owners elect not to take over maintenance of the Access Road, TBI shall restore the surface of the Access Road to its original grade and vegetation. 10. This agreement is subject to the terms of that certain Letter Agreement dated October 24, !997, by and between Owners and TBI which sets forth certain additional monetary and other considerations to be paid by TBI to Owners for the continued use and enjoyment of the Easement granted hereunder, which Letter Agreement is by this reference fully incorporated herein and made a part hereof. 11. This Agreement, together with the above referenced Letter Agreement dated October 4· 1997, constitutes the full and final agreement between the parties which is subject to mollification only by the written agreement of the parties hereto. Page 3 • • This Agreement shall constitute a convenant running with the lands and shall inure to and be binding to the parties hereto, their heirs, successors and/or assigns. IN WllNESS WHEREOF, this instrument is executed effective as ofthe/l.f-iz,t.lday of October, 1997. TBI Production Company By: Richard B. Porter, Attorney-in-Fact Page4 • • CORPORATE ACKNOWLEDGEMENT STATE OF COLORADO ) ) CITY AND COUNTY OF DENVER ) The foregoing instrument was acknowledged before me by Richard B. Porter, as Attorney-in- Fact for Tom Brown, Inc. this ;l!fWI day of October, 1997. g. ) ) ) Notary Public a.;,'1r J? &!I «a/ r The foregoing instrument was acknowledged before me by Larry A. Klebold and Karen Klebold this J4-Rwdayof0ctober, 1997. WITNESS my hand and official seal. My Commission Expires: Notary Public ~£#~<~ PageS .. Exhibit "A" Attached to and made a part of that certain Easement and Road Use Agreement dated October~ 1997 by an between Larry A Klebold and Karen Klebold, husband and wife,( Owner) and TBI Production Company, "TBI": • RIGHT OF FIRST REFUSAL TOPURCHASEREALESTATE • STATE OF COLORADO § § COUNTY OF GARFIELD § KNOW ALL MEN BY THESE PRESENTS THAT WHEREAS Tom Brown, Inc., 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to as ''TBf', owns the following described lands located in Garfield County, Colorado: TownshiP 7 South. Range 96 West Section 25: SFJ4S4/W Section 36: E/2NW/4, S/2NE/4, N/2SE/4, NE/4SW/4 Garfield County, Colorado which lands are hereinafter referred to as the "Option Lands"; and WHEREAS Larry A. Klebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hereinafter referred to as the "Klebolds", are the owners of certain lands located adjacent or contiguous to the "Option Lands"; and WHEREAS TBI and the Klebolds have entered ento that certain unrecorded Letter Agreement dated October 24, 1997 under which TBI has agreed to extend to the Klebolds a" Right of First Refusal" to purchase all ofTBI's right, title and interest in and to the surface estate in the Option Lands: NOW THEREFORE, for and in consideration ofTEN DOLLARS ($10.00) and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, TBI hereby grants and conveys to the Klebolds a "Right ofFirst Refusal" to purchase the surface estate in and to the Option Lands under the following terms and conditions: 1. At such time as TBI elects to sell, transfer or otherwise dispose of its ownership interest in the surface estate in the Option Lands, TBI shall notify the Klebolds in writing of such intention which notice shall set forth TBI's purposed purchase price for the sale of the Option Lands. 2. The Klebolds sball have thirty (30) days from receipt ofTBI's notice to advise TBI in writing of their election to exercise their "Right of First Refusal" and to purchase the Option Lands for the purchase price established by TBI or to finalize negotiations with TBI for the purchase of the Option Lands at a different price. 3. In the event the Klebolds elect to exercise their "Right of First Refusal", or in the event they reach an agreement with TBI for the purchase of the Option Lands at an alternate price, TBI and the Klebolds shall enter into a mutually acceptable formal Contract to Buy and Sell Real Estate which provides for a closing on the transaction within sixty ( 60) days from the date of the execution of such Contract. 4. In the event the Klebolds elect not to exercise their "Right of First Refusal" to purchase the surface estate in the Option Lands, or in the event they are unable to close the transaction within the above referenced time periods, TBI shall be released from all obligations to sell the Option Lands to the Klebolds and shall be entitled to sell the Option Lands to a ready, willing and able buyer at any negotiated price, provided that such third party sale is concluded and the transaction closed within 365 days after the date ofTBI's first notice to the Klebolds of its intent to sell as required under paragraph 1 above. In the event TBI fails to concluded and close on the sale of the Option Lands within said 365 day time period, the Klebolds "First Right of Refusal" to purchase the surface estate in the Option Lands as provided herein shall again attach to said lands. • • 5. The Klebolds "First Right of Refusal" to purchase the option lands, as created hereunder, shall not apply to TBI's sale of the Option Lands as part of a sale of all, or a portion of its asset-s, in the nonnal course and conduct of its oil and gas business. 6. The ''First Right of Refusal" to purchase the Option Lands granted to the Klebolds hereunder is specifically limited to the purchase of TBI' s ownership interest in the surface estate in and to the Option lands and TBI specifically excludes and reserves unto itself all its right, title and interest in and to the mineral estate in and under the Option Lands with the right to explore, develop, extract and remove such minerals without limitations. 7. The ''First Right of Refusal" to purchase the Option Lands granted to the Klebolds hereunder is personal in nature and shall not be assigned or conveyed to a third party without the express written consent ofTBI. 8. The rights granted hereunder shall not operate as, and nothing set forth herein shall be construed as or shall constitute, a restriction on TBI's absolute right to use the surface of the Option Lands for any purpose regardless of whether or not such use diminishes the value of such surface estate, provided however, that TBI shall not enter into any agreement with a private party or governmental regulatory agency, or consent to a land use regulation proposed by any governmental regulatory agency, which will continue to burden and/or restrict the use of the surface estate in the Option Lands after TBI disposes of its interest in said lands or which otherwise creates, constitutes or imposes a pennanent restriction on the use of the surface estate in the Option Lands. IN WITNESS WHEREOF this instrument is executed this day of October, 1997, to be effective as of the 24"' day of October, 1997. -- Tom Brown, Inc. Richard B. Porter, Attorney-in-Fact CORPORATE ACKNOWLEDGMENT STATE OF COLORADO § § CITY AND COUNIY OF DENVER § The foregoing instrument was acknowledged before me by Richard B. porter, as Attorney-in-Fact for Tom Brown, Inc., the_ day of October, 1997. WITNESS my hand and official seal My Commission Expires: Notary Public • STATE OF COLORADO COUNTY OF GARFIELD • ) • L:L.~ EASEMENT AND ROAD USE AGREEMENT 384 P01 s;.f.;!fl; 7 ) KNOW ALL MEN BY TIIESB PRESENTS ) 00 '00 /ln-<'7 THAT, Larry A Idebold and Karen Klebold, 60 Garden Center, Suite 202, Broomfield, Colorado 80020, hm:inafter referred to as "Owners," are the owners of the following described lands ("Owners' Lands") located In Garfield County, Colorado, to wit: Township 7 Sputb Ranse 96 We:a Section 35: E/2, NW/4 Section 36: SW/4 Garfield County, Colorado, and TBI Production Company, 555 Seventeenth Street, Suite 1850, Denver, Colorado 80202, hereinafter referred to u "TBr' desires to acquire an easement across OWners' Lands for ingress and egresa to and from certain lands located near the above described propeny on which TBI will be conductlns oil and gas drilling and/or production operations, hereinafter referred to as "TBI Properties"; 00:00 NOW, THEREFORE, for and in consideration of TEN DOLLARS ($10_00) and other good and valuable considerations: the receipt and suffici~;x of w~ch being hereby acknowledged, the parties hereby agree as follows. JJt 1lfYt. . . ~i: (_ '1 ~ / . -"' /? .. ___,h /1 c e.J c r "r,r,r;)"' • __ ) • t £ 0 "-,-rf' f"'<-< ,...c " .\ ~-0:...---___......-, ·,;z.:r ~rfr-R.l'l.sr..-..,....., r . ::_: • > 1. Subject to the _terms and co~ns aet forth herelri below, Ownorll hereby grant, bargain, · '-'-'""' sell, and convey to TBI a pnvate, t~QiiiiiableJeasement on, over and across the Owners' Lands at the location Bet forth in par118T8ph 2 below, and hereafter referred to as "the Access Road", for the purpose of ingress and egress to and from the TBI Propertiet for the sole purpose of conducting oil and gas operations on tbe TBI Properties. 2. The eaaement granted hereby ahall be and is hereby limited to fifteen (IS) feet on each side of the center line of the existing private road across Owners' Lands as shown on the attar.hed , Exhibit A; provided that the location ofthe elllating private road shall be changed to avoid the houses in the SB/4 ofS~ion 26, with the center line of the easement hereby granted to be located at least 7SO feet &om such dwellin88; 3. TBI ahall, at its sole cost and expense, construct, improve and maintain the Access Road to meet the following specifications: DGS-7ltl01.2 Oelobet 9,1997 3:AS pm 384 P02 00 '00 00:00 ,:)L:I"I -OI •'iUU1 !"iJVVI\ • U Ul I \,1' .......... ' ... .,,,.,. ....... --u·•--·-·- ' ~v/ ;'{ f{Pr-q#;' \ ~~ >---====- ' 11' o'/ (a) The Access Road shaD bs construct and maintained with an all weather surface e\7 (excluding hard surlllcin8) and shall be ao completed withi ·-_ weeks after the first uao by TBI of the ~ wement granted hereby; 1_ 0? (b) Culverts at ditc:h and drainage crossings and barrow pits shall be installed where ~ the Aeces& Road crosses ditches or drainage1; ~ V (c) The Ar.cess Road shall, at all times. be properly graded and drained and adequate~ ( dust. control method&. shall be utilized by TBI in the maintenance ot such road, ~~o _ · -~/1 Oll;COJ,mt)'J\.~~] dJM-r C'e.NW-<-4N 1c;r/ ,$'"?~"i5 ~-~ , j (' /,, , "l':_. ~ Clftt/ 41" ]'JO --t1 ) • -· ~ I (d) Cattle proof fences shall be constructed and maintained by TBI on both sides of ~\)f the Access Road; ~ (e) Permanent gates and .cattle guards shall be installed at each point where the Access Road intersecl& perimeter and cross fences on Owners' Land, at Owners' election. lf Owners or TBI choose to lock any gates on the Access Road, keys wiU be provided to TBI or Owners by the parly loclcing the gate; • (f) TBI shall reclaim alllllW on both side$ofthe Accllls Road due to road bull4ing. a(-- (}II/7Yr.s-_ 'f1} __ tj ( _ /{?? <-r f7J ~-vr 4-r F~~ /o,;v 1 "A/ T7 /PI 'E. ~,\. ~-. c::, ~wlisideration.fotlhe.w~~-&ranted hereby,~ atl!i~ers'~vitees '(y) \ sh have exclusive hunting tights on the foUowing described lands o'WQd bycTBl:--. #' 0 "'(' · ., . /;' . · ,!,M,v..s 5~"' hq J • • 1 ~ . i u\; Township 7 South Ranse 96 West v-z.-u& fo- . ' · ~l' I jV ~f Garfield County, Colorado -y #¢' /73 ,b'/h ,/ \..:/ ( 'IJ Section 25: SE/4 SW/4 _ ;1/6 ~Yt<...v T?/!/{7 ,, l r~ y{ Section 36: E/2 NW/4, S/2 NE/4, N/2 SE/4, NE/4 SW/4, . ~ \).) l and shall ~ve t!!_e right to exclude all other huntel'$ from such lancb. --_ pJ 5. A~ further consideration for tho casement granted hereby, TBI agrees ~ pJ v--(a) To upgrade, to the specifications ofthe Access Road, the exbtina road to the , ~ residence now on Owners' Land and to build, at no cost to Ownet'll and to the apccifiutions of the J<-"fi . ; ? Access Road, one single track spur . a future home site on Owners' Land u~et1 to be designated by Owners. ( . ..._1t n 1 w-<~P~ ~ 1<-1- f"'" c '{ ~tn NUtw'·« tvwwtS?c ?> _ ~ '5,PI(etF . ----.Iii ~, ~l~trr-A -~ .;9~ d"'~'" fi/.-r ,w~r "'""'n' .n · t:Pk 2J e "-e r<r ·· ::Jp rct '( - 6. The Access Road and the easement granted hetcby shall be used sol~ by TBI, its agents, employees, contractors and subcontractors fur the purpose of oil and gas drilling and I or 0 /c production operations._ ...... ·2- 384 P03 00 '00 0(:~:00 .JD,~ ·.IJJ ·~VI•' L &,..\1\1&\. • --· • ~/ 1 tJ1. tf it? tt.t: 1. TBI, ita agents, employees, contractors and subcontractors shall be and are hereby ,y Jil" prohlbitad from hunting on Ownen' Lands. K 8. TBI'a use of the A~s Road shall be at its sole risk and TBI shall indwnnify and hold "'wners hannleas for any lnjurie5 and or losses ~u5ed by or arising out of the construction, malnten.aru:.e or 1110 of the Access Road by TBI, its agents, employees, contractors or subcontractors. 9. Owners and OWI\crs' agenta, licensees, permittees and/or asai81J$, shall have the right to use the A,ggeu Road, which use shall be at Ownera' sole risk, and Owners shall indemnitY and hold TBI harmleu against all and any claims for injuries and/or losses which tC$\IIt from Owncr11' uso of tl!.e Aoaeo_Road ~<ithOao!attElb\tta!Jle~,tg•l);bra~IFo_Vflle_~~~ctibn!orrruiint~ce obl~ti~~" ~TB!. _ ~·11 ufl: );! t. c. '< re 'fM; ::<A"?Yt'R.?'"'Z. .. prl ~~ . #'ed15. /(.s ..r,..t: ,u::;. 10. ~~&anted hereby shaii terminate at such time as the Access Road shall w longer be used S'f'TBI:?'O'rolr and I or gas drilling and I or producing operations. and upon such terrliination TBI shall ex~Le any documentation necessary in Owners' opinion to fully evidence of rrP~FddJte.\termination of all righta ofTBl with respect to Owners' Lands and the subj~ce_~~men!. Upoosuch termination, Owners shall have the option, but not the obligation, to take over the maintenance of the Access Road. Should Owners elect not to take over maintenance of the Access Road, TBI shall reatore the surface of the Access Road to its original grade and vegetatlon. II. This Agreement is subject to the terms of that certain Letter Aareement dated October__. 1997, by and between Owners and TBI which sets forth certain additional monetaty and other considerations to be paid by TBl to Owners for the continued use and enjoyment of the Easement granted hereunder, which Letter Agreement is by this reference fully incorporated herein and made a part hereot 12. This ABreemem, together with the above referenced Letter Asreement dated October~ 1997, constitutes the full and final agreement between the parties which is subject to modification only by the written agreement of the parties hereto. -3- 384 P04 00 '00 00:00 • • This Agreement shall constitute a covenant running with the lands and shall inure to and be binding on the parties hereto, their heirs, successors and/or assigns. IN WITNESS WHEREOF, this instrument is executed effective as of the_ day of October, 1997. Larry A. Klebold Karen Klebold TBI Production Company By: Richard B. Porter, Attorney-in-Fact -4- 384 P05 00 '00 00:00 --··· -.·• --··· ~---·· • • COBPQMTE ACKNOWUDGMENT STATE OF COLORADO ) ) CITY AND COUNTY OF DENVER ) The foregoing instrwnent was acknowledged before me by Richard B. Porter, as Attorney-in-Fact for Tom Brown, Inc. this_ day of October, 1997. WITNESS my hand and official seal. My Commission Expires: Notal)' Public fflDnaDVALAQKNQWLEDGMENT STATE OF COLORADO COUNTY OF ________ _ ) ) ) The foregoing instrument was acknowledged before me by Larry A. Klebold and Karen Klebold this _day of October, 1997. WITNESS my hand and official seal. My Commission Expires: Notary Public -~- .. • MEMORANDUM OF SURFACE DAMAGE AND RELEASE AGREEMENT WHEREAS on the "'Z..() day of U~ 2005, Daybreak Realty, Inc., ("Owner") entered into a Surface Damage and Release Agreement with EnCANA OIL & GAS (USA) INC., ("Operator"), covering lands described on Exhibit "A" attached hereto. Said agreement provides for, among other things, the right to enter upon and use the Owner's property for the purpose of conducting oil and gas operations thereon. Said agreement sets forth payment of specific amounts to cover damages resulting from the construction, use and maintenance of the lands. Said agreement, with all of its terms, conditions, covenants and other provisions, is referred to and incorporated into this Memorandum for all purposes. NOW THEREFORE this Memorandum is placed of record for the purpose of giving notice of the Surface Damage and Rel~ase Agreement. ! Owner: Operator: Daybreak Realty, LLC EnCANA OIL & GAS (USA) INC. By: 1'3'1/D . < ( ~; fpl''>'tt,!? State of G~· ) 5-a:dl' ~ dc:zt'd) § County of €affielcr ) j o • • o M1~;, ~ fAJGfRIS• J @ Commission 1 1378619 Notary Publlc -California I J Santa Clara County l My Comm. Expires Nov 4, 2006 !t••········ On this 7fle:&J&r1 day of 'T..:M.u--f l/ 2005, before me personally appeared t2 fJ n [;,_(;plz;z m , of DaybreaJ< Realty, LLC, known to me to be the person(sf-' described in and who executed the foregoing instrument, and who acknowledged to me that he ~executed the same. (SEAL) My commission expires: N DV: YJ _:;zj)J)_b 744fiJzr<ur?Z~ Notary Public State of Colorado ) ) § City & County of Denver ) !ph.. """ ' On this '-1 day of J 1 LtL·~C 1''-, 2005, before me personally appeared, Joel S. Fox, Attorney-In-Fact for EnCANA OIL & GAS (USA) INC., known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed the same. (SEAL) My commission expires: Notary P6blic ' .. / My Comm1ss1on b.pires 7!19!2008 EXHIBIT "A" N2N Section 36 th of Section 25 Township. 7 South, Range 96 West of the 6th P. .; Lot 3, E2SW4, W25E4 of Section 19, and Lots 4, 5, 7 and 8, NE4SW4, SE4NW4 and the 5W4NE4 of Section 30 Township 7 South, Range 95 West of the 6th P. M. in Garfield County, Colorado. 13"/10 MEMORANDUM OF SURFACE DAMAGE AND RELEASE AGREEMENT. WHEREAS on the koday of 4'~ 2005, Daybreak Realty, Inc., ("Owner") entered into a Surface Damage and Relea Agreement w1th EnCANA OIL & GAS (USA) INC., ("Operator"), covering lands described on Exhibit "A" attached hereto. Said agreement provides for, among other things, the right to enter upon and use the Owner's property for the purpose of conducting oil and gas operations thereon. Said agreement sets forth payment of specific amounts to cover damages resulting from the construction, use and maintenance of the lands. Said agreement, with all of its terms, conditions, covenants and other provisions, is referred to and incorporated into this Memorandum for all purposes. NOW THEREFORE this Memorandum is placed of record for the purpose of giving notice of the Surface Damage and Release Agreement. Owner: Operator: Daybreak Realty, LLC EnCANA OIL & GAS (USA) INC. \ On this T.JMT•'e,.n; day of ,yarlva."a!f: 2005, before me personally appeared f?t> h {fl,;vh.;z»? , of Daybre Realty, LLC, known to me to be the person(s}--' described in and who executed the foregoing instrument, and who acknowledged to me that he (#ley) executed the same. (SEAL) My commission expires: ,.v',y, >f. _;;>...OC),b ' ~dff~;;ye~ Notary Public ~ State of Colorado ) ) § City & County of Denver ) ~ On this~ day of (Yltv\cft.... , 2005, before me personally appeared, Joel S. Fox, Attorney-In-Fact for EnCANA OIL & GAS (USA) INC., known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed the same. (SEAL) My commission expires: My Commission &pires 7/1912008 /fr"({Ut.L,, ~ (}w{tl/;Y";7/ Notary Public .I j j j j j j j j j j j 4. j j j j j j j j j j 'f EXHIBIT "A" N2NE4 of Section 36, the S2SE4 of Section 25 Township 7 South, Range 96 West of the 6th P.M.; Lot 3, E2SW4, W2SE4 of Section 19, and Lots 4, 5, 7 and 8, NE4SW4, SE4NW4 and the SW4NE4 of Section 30 Township 7 South, Range 95 West of the 6th P. M. In Garfield County, Colorado. r • • SURFACE DAMAGE AND RELEASE AGREEMENT I ' """l);iis Surface Damage and Release Agreement ("Agreement") is entered into this~ day of January, 2005 between Daybreak Realty LLC, whose address is 25300 Lorna Prieta Avenue, Los Gatos, CA 95033, (hereinafter "Owner") and EnCANA OIL & GAS (USA) INC. whose address is 370 17th, Street Suite 1700, Denver, CO 80202, its agents, affiliates, subcontractors, successors and assigns (hereinafter "Operator"). RECITALS A. The Owner owns the surface estate of property located in Garfield County, Colorado described in attached Exhibit A ("Property"). B. Operator is the owner of the oil and gas leasehold estate underlying the Property and Operator plans to develop its leasehold interests by drilling and operating oil and gas wells on the Property. C. This Agreement provides for payment to Owner and for the protection of the surface estate of the Property while allowing the prudent development of the energy resources. D. Owner acknowledges that Operator has the right to access the Property for drilling and related operations. Owner and Operator agree to the terms set forth within this instrument. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, the parties agree as follows: I. ROAD ACCESS 1. PLAN OF OPERATIONS. Prior to the commencement of operations, Operator shall provide to Owner a plan depicting Operator's proposed drilling activities. The proposed plan will include a base map illustrating the locations of proposed roads, power lines, pipelines, wells and facilities, along with the locations of existing roads and existing facilities. Operator may, from time to time, review and update the development plan and apprise Owner of any alterations within the plan. Operator shall also provide the Owner with a plat showing the length of all access roads utilized by Operator immediately following the construction or improvement of said access roads. 2. ROAD MAINTENANCE. Surface damage shall be minimized, to the extent possible, to limit impact to the owner's property. Operator agrees to repair, at Operator's expense, damages to Owner's Property which are caused by Operator. Operator shall be responsible, at its own expense, for all road maintenance, improvements and culvert replacements necessary to support its activities. Operator shall maintain the entrance gate to the Owner's Property in proper operating condition at its expense. In those instances where roads cross fence lines, Operator shall pay for and install cattle guards and/or braced gates at Owner's request. 3. ROAD IMPROVEMENTS. Operator will employ its best efforts to insure that all roads remain safe and passable, even while under construction. Road • • improvements shall be constructed so as to avoid areas with high erosion potential. Improvements to roads shall be graded to spread drainage instead of channeling runoff, unless Owner directs otherwise. No road grades in excess of 15% shall be allowed on slopes greater than 15%. The speed limit on all private roads shall be 20 miles per hour and operator shall enforce adherence to the limit. No off-road travel is permitted and no activity which has the effect of widening any road on Owner's property shall be allowed. Operator shall restrict its agents and employees only to the areas where work necessary to its operations is being performed. 4. ACCESS RESTRICTIONS. All access easements shall be limited to twenty-two and a half feet (22%') from the centerline of each road for flowlines, fills, shoulders and crossings, unless altered by the parties in writing. Access easements shall include an additional 25' of temporary workspace as needed for safety and construction concerns and shall not exceed eighteen feet (18') in width for travel surface. 5. PROPERTY MAINTENANCE. Operator agrees to keep all areas free of weeds, debris, litter and trash, and shall perform periodic trash pickup, maintenance and repair when requested by the Owner in writing. 6. REMOTE MONITORING. Where economically feasible, a remote monitoring system shall be installed within twelve (12) months of establishing production from the Property to limit the number of routine maintenance visits to the Property. 7. MINIMAL SLOPE. Access, flowlines, pipelines and well site(s) shall be designed and constructed in a manner that minimizes disturbed area. Steep slopes shall be avoided and deep cut and fills shall be constructed to the least possible slope. Road construction that requires cuts-and-fills shall be minimized to the maximum extent possible. Dust suppression shall be adequately managed by Operator on roads utilized by Operator during project operation. II. OPE:RATIONS, COMPLETION AND PRODUCTION 1. E:QUIPMENT STORAGE. Absent Owner's consent, except during active operations, completion and production, Operator's equipment shall not be stored on the Property. 2. CONTROL OF LIQUIDS. Well site equipment shall be designed or padded so that any oil, lubricant, or toxic materials drain into a collection system for safe removal from the Property. 3. WATER. Produced water shall be removed from the Property. Produced water shall not be disposed of by road spreading without Owner's written consent. In addition, Operator shall not, without the Owner's prior written consent, use any water from existing wells, reservoirs and springs on the Property. Operator shall not disturb, interfere with, fill, or block any creek, reservoir, spring or other source of water on the Property. 4. NOXIOUS WEEDS. Operator shall use its best efforts to ensure that noxious weeds are not introduced to the Property and will remove noxious weeds which are introduced or spread due to its operations on the Property. 2 • • 5. LITTER. All construction debris shall be removed immediately by Operator. Construction areas and access roads shall be kept litter-free by Operator. Operator shall provide trash receptacles on all well pads and trash shall be contained and regularly collected during Operator's operations. All garbage and trash shall be expeditiously removed at Operator's expense. 6. VEGETATION. Operator shall use best efforts to minimize disturbance to existing vegetation near the well site. Vegetation removal necessitated by construction shall be confined to the limits of actual construction. Operator shall prune rather than remove vegetation in instances where removal is not necessary. All trees removed for construction must be removed from the Property, bucked up for firewood, or left on the Property per Owner's written request. All slash and debris shall be removed from the Property within one week of cutting. 7. NOTICE OF OPERATIONS. Operator shall notify Owner in writing 30 days prior to any drilling or re-working operations, or construction of access improvements on the Property. 8. USE OF PITS. In order to protect the surface and water below the surface, Operator shall either use lined pits during the drilling of the wells or shall drill without the use of pits. If lined pits are used, such pits shall be fenced and screened to prevent injury to humans and wildlife. Operator shall be solely responsible for mitigation of soil and groundwater contamination from its operations. Upon completion of the wells, drilling waste materials shall be rendered soil-like and suitable for deep-root vegetation growth. Operator is hereby permitted to use Soli-Bond as a solidification product so the drill pit may be reclaimed rapidly. Any pits shall be reclaimed as close to their original condition as possible in accordance with the regulations of the COGCC. 9. WELL TRANSFER. Owner shall have thirty (30) days (hereinafter "Election Period") after written notification from Operator to elect to take over from Operator any abandoned well-bore where the surface location and bottom hole location are both contained on the Property for the purpose of converting said well to a water well. Owner shall exercise its option by providing written notice of its election to Operator on or before the expiration of the Election Period. Owner shall obtain all required permits, licenses and bonds prior to any transfer of said well from the Operator. Upon Owner's exercise of the option set forth herein, Owner shall be responsible for all subsequent costs and expenses related to Owner's election. Operator shall transfer the well to Owner, to a maximum depth to be determined and/or required by the Colorado Oil and Gas Conservation Commission. Owner shall, by written instrument, indemnify, defend and hold Operator harmless and forever release Operator from any further obligations and liabilities as to said well including the plugging and abandonment and surface restoration. If Owner fails to respond or does not exercise its option within said 30 day period, Operator shall, in compliance with applicable State and Federal regulations, plug and abandon the well. 10. EROSION CONTROL. The topsoil horizon, or the top six inches of soil, whichever is deeper, shall be segregated and stockpiled separately at all excavations. Erosion control, including but not limited to netting, mulching, recseeding and weed control, must be maintained throughout Operator's construction activities. Water bars shall be constructed on road grades or slopes to avoid erosion. Spacing of water breaks is 3 • • dependent on slope and soil type. Culverts shall be placed in low areas for proper drainage. Timely re-contouring and re-vegetation of disturbed areas shall be required to limit runoff from disturbed areas that could cause sediment concentrations in surface waters to rise over present levels. Construction shall not occur on frozen or saturated soils or when the likelihood of watershed damage is higher than average. Accelerated soil loss will be minimized by limiting the following: the removal of vegetation; the leveling of work areas; and the location of wells on slopes that require cuts-and-fills for well pad construction. Areas of highly erosive soils should be avoided when well sites, access routes, and flowline routes are surveyed and staked, in order to substantially reduce the amount of soil loss. 11. SOUND. Sound levels must not exceed the maximum permissible levels imposed by the Colorado Oil and Gas Conservation Commission noise abatement regulations 802(a), 802(b) and 802(c) at property lines or home sites as applicable. If necessary to minimize sounds levels, additional sound attenuation shall be installed by Operator, at its own expense, as required to achieve acceptable noise levels. 12. VISUAL MITIGATION. Visual mitigation shall be performed by Operator to obscure its sites as nearly as practicable, and fencing shall be installed when requested in writing by Owner to protect children or livestock. Long-term visual-impacts shall be minimized through activities including painting exterior surfaces in earth tones consistent with the area and re-contouring and re-vegetating disturbed areas no longer needed for operations. 13. INTERIM RECLAMATION. Operator shall engage in prudent interim reclamation concerning its drilling activities. Ill. SAFETY and ENVIRONMENTAL ISSUES 1. NO UNAUTHORIZED PERSONNEL OR ACTIVITIES. Operator shall provide the Owner with a list of 24-hour emergency contact numbers for responsible persons who are in supervisory capacity over others authorized by Operator to be on the Property. Operator shall ensure that all employees, contractors and all agents verify the entrance gate is closed and locked behind them when entering or leaving the Property. Every person authorized by Operator to be working on the Property shall be fully bonded and insured. Only employees or contractors of Operator and its agents are allowed on the Property. Personal or leisure activities are prohibited. Hunting and fishing are prohibited at all times. Harassment of wildlife is prohibited. Operator shall ensure that firearms, pets, alcoholic beverages or illegal drugs are not brought to the Property. Smoking is prohibited except in enclosed vehicles. (') _ -~ 2. LIABILITY OF THE PARTIES. Operator retains liability for any and all \(_J/ environmental remediation of any pollutant or contaminant as a result of its operations, and shall pay all costs associated with such remediation. Operator shall take all ~ reasonable precautions to avoid any release, spill, deposit, or disposal of any hazardous(/"/' " substances, sewage, or any pollutant or contaminant that is regulated by any applicable federal, state, or local laws or regulations ("Hazardous Substances") in, on, or about the Property. Operator shall indemnify, hold harmless, and defend Owner from any and all claims, liabilities, losses, damages, cleanup costs, and expenses (including reasonable attorneys fees) arising out of or in any way related to Operator's operations on the 4 • • Qs5 Property. The provisions of this paragraph shall survive the expiration or termination of r4XJ this agreement. '-(/ • 3. LIABILITY INSURANCE. Operator, at its expense, shall procure and maintain comprehensive general liability insurance policies against claims for bodily injury, death or property damage in the minimum amount of $1 ,000,000.00. 4. FIRE PREVENTION. Operator shall utilize safe practices, and take precautions at all times to avoid and prevent fires through the strict adherence to COGCC regulation 606(a) entitled FIRE PREVENTION AND PROTECTION. 5. PROHIBITED SUBSTANCES. The use of insecticides, herbicides, fungicides, rodenticides, and other toxic substances shall be prohibited unless used in conformity with a written plan, approved by Owner. Soaps, detergents, and other non-degradable substances shall be segregated, contained and disposed of in a safe manner. 6. WATER TESTING. Operator shall conduct baseline tests of Owner's existing water resources, as defined in C.R.S. 37-95-1 03(14), prior to commencing operations, after final reclamation of the Well Site, and as requested by the Owner or required by regulation or statute. In the event a water resource is determined to have decreased in quality or quantity due to Operator's operations, Operator shall take reasonable steps to return said water resources to the original condition indicated by the baseline tests. Damages caused as a result of a decrease in quality or quantity of the water resources due to Owner's operations are not covered by this Agreement. IV. RECLAMATION 1. SURFACE RESTORATION. Upon termination of any of Operator's operations upon the Property, Operator shall restore the surface of the Property affected by such terminated operations to as near original condition as practicable. Operator shall remove the wellhead to 52 inches below the surface upon abandonment. Final reclamation shall include, at a minimum, removal of all production equipment and debris, correction of subsidence of any disturbed areas by adding additional topsoil, closing unnecessary roads, re-grading and re-contouring closed roads and well sites, and reseeding. Reseeding shall re-establish as nearly as practicable to its original condition, vegetation suitable for farming, irrigation, forage and wildlife habitat in the disturbed areas. Additional measures, such as topsoil conservation, temporary fencing, fertilizing, mulching or weed control shall be utilized by Operator, as appropriate. Reclamation and restoration shall produce a natural appearance and shall be consistent with site conditions, local standards, and rules and regulations of appropriate local, state and federal agencies. Additionally the area, extent of surface disturbance and the length of time the area will remain disturbed before interim or final reclamation activities commence shall be minimized to the extent possible. 5 • • 2. TIME LIMITATIONS. The surface area surrounding the well shall be reclaimed to the standards of the COGCC for interim reclamation within a reasonable time and no later than 12 months after a well has been drilled. Final reclamation shall take place no later than 12 months after a well has been plugged and abandoned or sooner if required by the regulations of the COGCC. 3. BOND. Operator shall be fully bonded and insured for environmental reclamation throughout the life of the project and until final reclamation has been completed. V. SURFACE DAMAGE COMPENSATION Prior to the commencement of drilling operations for a well on any well pad located on the Property, Operator shall pay Owner the following prescribed "Damage Amount": First well on a well pad: Second well on a well pad: Third and subsequent wells drilled on a well pad: $10,000.00 2,500.00 3,500.00 per well. Such payment shall constitute payment in full by Operator and its affiliates for all normal damages, including, but no limited to, damages to growing crops, associated with the drilling, construction, completion, recompletion, reworking, re-entry, production, operation and maintenance of the well(s). Normal damages include, but are not limited to, reasonable and customary ingress, egress, rights-of-way, construction of all access roads, preparation and use of the well pad area, preparation and use of reserve pits, and construction, installation and maintenance of production equipment and facilities such as flowlines, gas pipelines, separators, tank batteries and other equipment or facilities necessary or convenient for the production, transportation and sale of oil and/or gas therefrom. If by reason of Operator's operations, there is damage to personal property on the Property or there is damage to the surface of the Property caused by the negligence of Operator or an unreasonable use of the surface of the Property by Operator that is not associated with reasonable and normal drilling, completion, recompletion, reworking, re- entry, production, maintenance and operation of the well(s), such as damage to structures, fences, culverts and cement ditches, such damage shall be repaired or replaced by Operator or Operator shall promptly pay Owner for such damage. Except as provided elsewhere in this agreement, Owner, for itself and its successors and assigns, does hereby, in consideration of the Damage Amount, release, relinquish and discharge Operator from all claims, demands, damages and causes of action that Owner may have by reason of the drilling of the well(s) and all other damages or injury to the Property caused by the drilling, completion, recompletion, reworking, re-entry, production, operation and maintenance of the well(s), and Owner accepts the Damage Amount as full compensation therefor. 6 • • VI. GENERAL PROVISIONS 1. COGCC REGULATIONS: Operator shall conduct its operations on the Property in accordance with all of the rules and regulations promulgated by the Colorado Oil and Gas Conservation Commission, as well as all other applicable local, state and federal laws, rules and regulations. 2. DEFAULT. In the event that either Owner or Operator fails to comply with any right, duty or obligation hereunder, the non-defaulting party shall so notify the defaulting party in writing and, if the default is not corrected within sixty (60) days from the receipt of said written notice, the non-defaulting party shall have the right to enforce the provisions of this Agreement in law or in equity along with any other rights and remedies, including recovery of reasonable attorneys' fees as provided under the laws of the State of Colorado. 3. RESTRICTED USE. Except for the use of the Property as described in the body of this Agreement, and as illustrated in Exhibit B, the Operator shall not use or occupy any part of the surface of the Property except in the event of an emergency. 4. INDEMNIFICATION. Operator agrees to defend, indemnify and hold Owner harmless from any and all third party claims, demands or judgments connected with Operator's use of the Property. This provision shall survive the expiration or termination of this agreement. 5. MEMORANDUM. Owner and Operator shall jointly execute and file in the county records a Memorandum of this Agreement to provide third party notice of the existence of this Agreement. 6. BINDING AGREEMENT. This Agreement shall supersede all preceding surface agreements, if any, executed by Owner and Operator or any of Operator's predecessors in interest covering the Property and related to gas development. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective employees, contractors, subcontractors, affiliates, subsidiaries, agents, lessees, successors, legal representatives and assigns. 7. TERM OF AGREEMENT. Unless otherwise agreed by the parties, the rights and obligations granted under this Agreement shall terminate when operations cease to exist, as determined in good faith by Operator, or when all of the underlying leases have terminated, whichever occurs later. 8. FORCE MAJEURE. All express and implied covenants of this Agreement shall be subject to all federal, state, county or municipal laws, executive orders, rules and regulations, and Operator's obligations and covenants hereunder, whether express or implied, shall be suspended at the time, or from time to time, as compliance with such obligations and covenants is prevented or is in conflict with federal, state, county or municipal laws, rules, regulations or executive orders asserted as official by or under public authority claiming jurisdiction, or Act of God, and this Agreement shall not be terminated in whole or in part, nor Operator held liable for damages for failure to comply with any such obligations or covenants, if compliance therewith is prevented by, or is in conflict with, any of the foregoing eventualities. 7 • • 9. NOTICE. Any notice or other communication required or permitted under this Agreement shall be sufficient if deposited in the U.S. Mail, postage prepaid, with a copy sent via facsimile, addressed to each of the following: If to Operator: EnCANA OIL & GAS (USA) INC. Attn: South Piceance Land Negotiator 370 17th, Street Suite 1700, Denver, CO 80202 (720) 876-4551 (Facsimile) If to Owner: Daybreak Realty LLC Attn: Bob Graham 25300 Loma Prieta Avenue Los Gatos, CA 95033 (970) 242-8466 (Facsimile) Any party may, by written notice so delivered to the other party, change the address or individual to which delivery shall thereafter be made. 10. ENTIRE AGREEMENT. This Agreement, which incorporates the Exhibits attached hereto and made a part hereof, constitutes the entire agreement between the Owner and Operator, and no representations or statements, either verbal or written, have been made between Owner and Operator which modify, add to or otherwise change the terms of this Agreement. All modifications and amendments to this Agreement of every nature and kind shall only be made in writing, signed by both Owner and Operator. 11. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of Colorado. IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above. EnCANA OIL & GAS (USA) INC. LLC ByJI!!!t Its: Att rney-ln-· act 8 DAYBREAK REALTY • •• ~ .••. ~rr·.·M.I · ·ff .. ·.·lALTGkrt J <;ommlsslon # 1376619 Notqry f'ubllc -Cotitornra f ~ta•Crora County - . · ... ~Comm.Ext>ltest;pv4,2006 ' c ~-f:f/ f I'} ,_,;z State of Gelef8ee · ) 5-;s.n'ra:. c)~ d. ) § County of Gar:fiel€1--) On this "tWtMTiR:rlflay of tT2Ef!utt:{ 2005, before me personally appeared hevta.Jv.,y+? . of D break Realty LLC, known to me to be the perso11 descnbed rn and who executed the foregorng rnstrument, and who acknowledged to me that he ({hey) executed the same. (SEAL) I My commission expires: N?lt! lf, .2/?t),b ~7-),~ Notary Public ~ State of Colorado ) ) § City & County of Denver ) On this Lf't1--day of -~-fYtklL·f._, , 2005, before me personally appeared, Joel S. Fox, Attorney-In-Fact for EnCANA OIL & GAS (USA) INC., known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed the same. (SEAL) '-"/}vu~ ~ (}_d._vrYv./ Notary PUblic 9 • • -. 1 • • EXHIBIT "A" N2NE4 of Section 36,·the S2S~4 of Section 25 Township 7 South, Range 96 West of the 6th P.M. Lot 3, E2SW4, W2SE4 of Section 19, and Lots 4, 5, 7 and 8, NE SW4, SE4NW4 and the SW4NE4 of Section 30 Township 7 South, Range 95 West of the 6th P. M. in Garfield County, Colorado. From: Byers, James C Sent: Friday, April 06, 2012 9:45 AM To: 'Busch, Renata' Cc: Cimiluca, Christine; Crockett, Allen B Subject: RE: JIM*High Mesa PN30 Access Renata, I spoke to Allen Crockett about this request. He asked that I respond to you and perhaps you can share this information with the county staff. Encana as the lease holder of the adjoining Federal oil and gas leases on High Mesa has rights prescribed in the lease language allowing for access across BLM land to those leases to conduct lease operations. So access is inherently provided to Encana to access the communication tower as the tower provides 24/7 radio telemetry to Encana offices regarding up-to-the-minute well operations on the various surrounding Federal leases. 1,.....~~.T •.,r:,;I··!.,.·l I) :-:i~~I;~:~·~i.J1M··' ·."-.''.,~.'.....;. Tltu r..,.,."'••,,...,r-...Md·.~ :&I""h,••,~I.'It:.I .. I"••;.".'..'.'7':01"'..~.f'":::,'"\ I I .UNITED STATES",.'. 'LJ~RTMENT OF THE INTt:..<1 BUREAU OF LAND MANAGEMENT ." om""............'"-~-~_...~ '..'..·..~i'\:.'OFFER TO LEASE A;..-n LEASE FOnOIL A~m GAS..(Sec.17 :-;onc~mpclili\'C j.Year Public Domain L~""e) ........'. .:,<THIS OFFER Wll.l nE REIHTElJ .~~D RETI'R~ED TO TIlE OrHROR A~D "'11.1.HrORD TilE OFFEROR ~O rRIORITY .:.Ir IT ISI~OT PROPI:III.\'nLLED I~.'~lJ E:\ElTTED on Ir IT IS ~OT ACCO~II'A~IED D\"TilE REQI:IllED DOIXMESTS 'OR PADIE:"iTS.SEE ITDl ~or GE:"iERAL I:"iSTRI'CTJO:"iS .>..~::.-',:t.~.;'..:••(FlU la 'oa •l1pewriLer or prial Pla..iDJ110 Ink aDd alp In Ink)'.):;..\fu.:.,.:";. :,.~::;::<.,;~.l.m ..;e:~~~.:e.~:~f~·-·-~,~7§·-Oi~;·;··S~..or '..'.'......."~.'.y_.!-_.:....~_.~~..~...~.._...;....~.,.:f;:.::tU.-::9.nk t;..r.~7ru.:t :o~.?9.r,y .:'.•.".t..","wr.lod &.I.Id=Llec'l 1-'..'\...I'.'"..'.'.:......:.':_......'.,..;-:;",.~n~.·.,...;·a.tI~e s~.. :..i:':"'",","Der.ver,··Color..do·.'',".'':'".''.".':I......_'.·:-··.--··-·-·····..__····_··.c:;"iL::;"i·~i&~~-···········.·-.:-_--I I··~..;-. ~f~•.'r O:::'~r!to 1,.s,C('all C'r·ar.~·or t1-.~In.nd'!de!"C'ri~Jt-din it.em 2 t".:l.t"ai('an:~:\I~..(('Ir l~a·".f1".1f"!1uant aid ·.'u.t~t\0 ~tenn!-anet pro- .'.""i~:t:":.~c.f1t:'o:-a('t or r L'!r'~l\iY 2.i.1~~O·.41 ~tat.-43';'.30 t·.~.c.~~r,I ~I .6,.(U;.I.:••-:.....:.~.t'U:I:.:lrttr rd"TrCfl t.,a.';1~.~aU.rulr\.\()all rca.,.-Qn· '.'a!,;~:'('~:ia·:r:.i.!',:.(thl;'~'"C'r(·ta:"y or tbe ILt(:rior DOWor 1.ert:aher i:.~·_'rC'e,,,~.c:.:.~:'::.c<.o::.~b~"'·L.t,,;jIb aD~'upr~!oS anoj 6PC:Cificpro'H::l00!l '.."!.('rl'!:r .......:.'..~.8,r('n.:l·::!t-a ;':!":"!~~('rtVr...... .::,.' .;.,I ,!; ~rlal ~o..:'i.L~.=.~':__ .'....}.G-2..'/-1?JteC'f:lJ,rt .o .•.•.•.•.•••••...••.• .' "•#0 •••..;.,~I I. .'. 2.Land reqaf05led ..~.'..3.L'And includt-d In lean -.' iIit II " :-.,:.! !i ! Iri ".:,....• .".I ....~'.::,..··~oi.a!A~~·~~_:?-'!.~:_.:.A~I Tow AI :::A."",.ilI>olAl n"lain.d L.~_ :.- ".'::' .. I;! ..;. ...~::."'0'_-'-.,..-__-'-_--.:.__--.:.-'-'-'-__..:'!.....:.-----'---....:..:.--,.----------------------- :.:4,'.\m'O'JOI ,.mitt.d:Piliog Ir:e !IO.R.~lal s...J.2Q •.OQ.:..TotAI·s..JJP .•.O:<L. ·';.'5.rr.~~nig:;f'd «.rtifi~~~rouo~..s:......'X :...:.\0)Offeror ~a CItizen of tbe l DIl~d ~lAt.es.~atl\·e born •••......••••_••_~lltural:z('d ••.••.•••.•__•••••Corpontlon or other lC'gal '.'.en tity (~p<.·dl.r what kind):..•••••_...•••~.-•••-•....•••••••.~~;~~:.•••_•..•.•.•••......••~.:.....•..~~.__..•...•.•••••.': (b~O:::'t'ror'!;ntoC'l":'HsdiN'('t a:"ld i;:ll~.irecl boil &nd s:a....lco....~and a;...?li('atior.!or CI~cT"!~Lf'rdor ir.tludiTlp;this ofrf"r in the Mme StAte dt):.t)~~"C'~d 15.360 C'~~rg~ab~e llr~.(c)Offeror &CcepUi &5 a part or ttL'!l':'a.~.;IO t'1".('ntcnt tlpplitabl('.t!":.('Cotipulatioo!J pro\'ided '.:..·.ior i~-1.3CFR 191.6.~a;Oe'eror i.!'21 years or age or o"·er (or'if 'a corporation l?r Ot~l('r lef::a1t-ntity.is duly qUAlifit-d L!abo"'n by ":".Bta:emC'D~5 mace or :-efemod to herein'.ee)Orr~ror ha.s described a:1 ~un·e~·cd landE b~.-le~al s·;tx!i\"Ctiotl5 and utl5u1\·eyed la.nd8 b1 ..=.mete!'.nd bounw,and ft:nlcr Sta~e3 lhat lhcre arc no &Cttl~",on uM".In·ey~d lar.ds dc!C'ribcd herein..'I ...,".I '·"6 ..oeeror's !:~r:ature to t!:oi!ofJ'n !bal1 8,l!o c:on!titute offeror'!5i~at".lre to,And llC"C'<'jltanC"f'of.tbi!lc&.e.t'and any amendment lh~reto :.,..~Itl:.at r:.a,.C:O\'n any land dC'5C'ribed in ttJs oller open to lea.se apptic.ation at tbe tioot-the offer W~filed bUl omitted rrom tbis leL.~ .:::...Jtor an~·re"-!-on..c"r sil!-"nature to.or aC'ceptanoe 0(,&.Dy &Cparate 1~.!LSe ror suC'h land.Tb~o(J('ror rur~bcr "~~!1 that.(0)t.bUs ·~,.;.;'offn cADr.Ot be w-itbdrawo,eitht-r in whole or in pArt,uol~tbe witbdra'lral i!reeci\"ed by the land office berore this le.a.se,,,o &ID~Dd... .....:...''ment to this le&.!e.or"&'separate lea....-.e.wbicbe\·er ("O\·e1"9tbe land dc~crihed in ·tbe witbdra.waJ.hAs heeD !;igned iD bebalf of lhe I ['oited State!,aDd (b)tbis off~r &D.d.lea.se ahalJ apply only to IAod,·nol wit bin a.known I;;eologic atrueture or a produciD.l oil or g ... field at tbe time tbe oBer i3 filed.'.".:..''.I ..I''.7.It is hereb~cfrti5~d tbal tbe atatemeDta m ..de berein are trot-,eamplele ud correct to tbe best of offeror'.knowledge aad belief,aDd :'a.re made in good f&lth.'".....'.L', ".,.... .n.l~f(~::-.l~.:,;~rr.i:~f'iI'~'::~:t~c;~.,rti~I.1rc.·r~.·,·."ii:'i.,~.lrd·~;tic:D:and ('n~lnl ,II of 'ht rr'",,"l~~n.,tI,"""'a~(,of ,t-.,'d,'t',·1 ~llin ,.~t~it eorr".. ,1,\"lr[TSESS WHEREOf ..OlIe",;bas duly executed Ibis i",lrumeDt Ibis _,2J,1:dL ..:dar 01 ...J.~.f __105..3..- "....1 •••••••"..'.''..•......".-::::-Y .'..l WIT~J:!.."'['I ..:.'.::,.'.,,:. .:.~:~JtJ.:.:,.'::i:0d.:._:.:..~.:::::~:~:......._:~:::,'~.::""__,.~..:":':;':'iIk--':.'~~:u••••#."")~~'Z.~"...(~''''''''''l..::.;:.·.:.,·;1.,...;<§J...,....~..;;,~i ··_:·f r ··......·........···.._..···-;-..iL;;;N·;i~;~·i..··..·_..··......_-:.~~·...~··:j._~.1·'./~:.:~...'.:;!~:r.:;::J.:::..::.~.:.'::...:::~'.,....... '.':'/•.~...:..:.;.."',~'·~I:···.:~.";c',4 ',.:~•.:':::"·_··..•..••·•••••••...~..·(A·ik;;~j:i~:rUt)··.....·:...··....···.... ,'.'1-'"__,r -.......I.v....•I -.•....TI.:lJ lcl\...CC {or l1".e lao&.desC'ribeod I~Item 3 abo\'e la he~by'L't!ut-d.IfUbjloC'tto the pro\·l!ionl!or tht'(\trf'r and on the ftyene side he~r. ··~::..:L::~·:;:~:~·~~\~.~.;~:.·,:'o~:.~:~:.~.TCrr"~':Dr.ED'STn,~~;ft~:k:!~f:& •:....._•••(toIIlUDI O~C'CI'f)0 F."'"n .'..,~•·.....J:'''l ]".--,,'"',....l.t;.>.,',..Ef!~('t!\·~d:'l.~~1)(lea.s-e •••••~••..."':1;~l.J._.__.-~;:i·:tt ···'-'_·····-·:r.;.L;r·······- I':·.·.:·-:::~8Co·s.('.ue.1001 maku It B 'rrlme (or an,.'penon kno~lnE:l,.and wlllfull1 to makt t~an~D~pulmf'nt'or arenc-,or tbe l'nll~' .~.1'~~~~'~~.'1~~I.~~.•fi~lh.i,~~~.or ~raa,d.ulr~l alalrmfnl.or re~reU'nt ..tionll u I~In1 mlt~er ...it~ID lu Jurisdiction../')/~. ,'.•••••••,...•••_••_.'•••••_••••_....~_••1..••••,"",.","'''!••",t hit ..l!.,..1 hTT:l.In '-"X\td LI1f'1t..lib U..pro,,:aIoDi 01 cJ erR:e!;~a). ;.....................-__-._..~~_.._..__-_.,. ,.. '.. i -.~./.. '..-No.91 ,I..n.-R ..nroduud by bradrord_P-n;n:nN"u,4,a113t1 , J'ourth Edition . (~el",t.IW) ~.'Ul'.Cu.,IS24·-46FlOlllSt.,Denvtr,Colo. -..UNITED STATES •/t~ ~~r:t~Pi~~~·No.42-RM J.~.. ...~ARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT G....;.;.A~~. 0tIi ce .........•...............'Ffc:.CD ..?-?>(! Se"al No.'un1U7;).OFFER TO LEASE AND LEASE FOR OIL AND GAS (Sec.17 Noncompetitive 5-Year Public Domain Lease)Receipt No . THIS OFFER WILL BE REJECTED AND RETURNED TO THE OFFEROR AND WILL AFFORD THE OFFEROR NO PRIORITY U·IT IS NOT PROPERLY FILLED IN AND EXECUTED OR IF IT IS NOT ACCOMPANIED BY THE REQUIRED DOCUMENTS OR PAYMENTS.SEE ITEM 9 OF GENERAL INSTRUCTIONS ,(Fill in on a typewriter or print pl.lolr In Ink and..~IID In Ink) .~:...'.'; 11..James P.SloBS .1:>-I•••-•••-~-----••~~---.••••-----•.-(NameY _••--------.----•••--.--••-.~~~-./", 506 ColDlDOnHllal th I:lldg..'<i -,'4-••-••---••_..••--••-••••---iNliDitiei··kne:rsiiM"tY----·-·-·-------.-..------,r~~• ~'..r\,Denver.2.C.olorado i..;"..~'.:YiL---·-·---·····--·-·---------iCltyand·Si.itar------------..-----..-:.:~~...?-~:..~:."\.:.':.00 .J:iereby offers to le8J5e all or any of the lande deecribed in item 2 that are avaiial:llQ..ft)~:'~·:'j:)unmant and subject.t.o the terms and pro- yi:dons of the act of February 25,1920 (41 St~t.437,30 U.8.C.sec.181),as amended,herei~aft~r referred to as the act,and to all reason- able .reguls:.tions of the Secretary of the InterIOr now or hereafter In force,wben not in'c6q'sis,teir(:w~th any ell:preas nnd epecific provisionsherem,which are made a part hereof."_":~'.,(..!;" :.:.~.,,~.~·i//.:·~~",;,0\;' ."".-"'}·Pt,Bj,SB NOTIJ'T TH E 'SIGNING OPFICER or j,NT CUj,NGE or ....DDRESS. 3.Land IDeluded In leasef2.Land reQneatedi---------------- Ii Color~Garfieldi-.---.---.-..·--(iii.~·te)·---·-··---.-------.-----·(c~~ij)---··.-------..----. :T.l ..~~~.•R ...•?~._.~'!~.I _..§t.h_.__.._.Meridian COLORADO (Not ("be IIUd 1Dbl OJr_) GARFIELD I II,I I Total Area ••.?1.~Q ·Ac.... I I seotion 301 NWtNi~~slswi.sWlsEtI,Seotion 311 Si~NW,WiNE!.SEfNE! Seotion 321 S~,S ~ Section 331 sl,s?tfil Section 341 SW!'Sj-NWt.NEtNWt,swtsEtSection351's~ Seotion 361 S~ I 4.Amount remitted:Filing fee $10,Renlal $..~.~~~.?~.~Total $.....~~.~~~.!~')I ''1'f f6.Undersigned certifies as follows:y \ (0)Offeror ~a citizen.of t.he United State!.Nati e born .._~~_.__Naturalized _Corporation or other legal entity (,pecUy what kind):.;'(b)-Off~·;~;,~-i~~;;~t~-di~~t:-~~d·j~di-~~i-i~-~ij·~~'ig~i~;~·;-~;;-;i;p-pil~~ti~~;-~-;·~fi~~·i·b~-;f;;;-i~~l~di~gth;·~ii~;-i~·th~·~·~~·~-at;t; do not exceed 15,360 chargeable acres.(c)Offerbr accepts as a part of this lease.to the extent applicable,the stipulations provided lor in 43 qfR 191.6.(d)Offeror is 21 years o{age.or over tor il a corporation or other legal entity,is duly qnalified as shown by statements'made or referred to hereIn),(e)Offeror hu dcscribed aU surveyed landl!l by legallllubdivisions and unsurveyed lands by metes and bounds,and further statee that thete are nd.acttlcrs on uneurveyed lands described herein. 6.Offeror's signature to this offer shall also constitute offeror's eignature to,and acceptance of,thie lease and any amendment thereto that may cover any land described in this offer open to lease application at the time the offer was filed but omitted Irom this Jease for any reason,or signature to,or acceptance of,any separate lease lor such land.The offeror further agrees that (0)this offer cannot be withdrawn,either in whole or in part,unless the withdrawal is reccived by the land office before this lenso,an amend. ment to tille lease,or a separate lease,whichever covers the land described in the withdrawal,has been'signed in behalf of the United Stales,and (b)this offer and lease ehaH apply only to lands not within a known geologio struel.ure of a producing oil or gas field at t.he time the offer is filed. 7.It Is here'hy cert.ified that the statemente made herein are true,complete and correct to the best 01 offeror'a knowledge and lJelief,and are made in good faith. Thie form is submittcd in lieu of official Form 4-1158,fourth edition,Dnd contains all of the provisions thereof as of the dote of filing of this otter.21st·January,1955 IN W;JI~NE8S,1Wl1E~~OP.Offeror bac duly nccuted tbi.instrument Ibia day of 19 . II;../1'.1 WITNEBSE8 '../1 .~~--..._..,Yl.r(,AI!'~'-~/"~(.,.(I .'"..>,__, ,.....;:.~.:~.::~...~.,....f.:tf···:~·,···~··iii;;~~~~·.;;~;i,-y1c.'/...f:l;.<:Ll:.:;.......···.·..7.·~~~~.;ij.~~~~r::-:i;;;:-~;-.. P"t~;t.r,fa.(·,.:.'Lz<·~····"'·c9.qN;;;;;~;,·~;f£~i·"'··,"'~;·,;!..,L-.,L..,.".,,/......ii,;;;U.;i;,;";;,~i :• -··..~···~,·_·_··(A·lioi,;;;:i":r~~e··. Thl8 lease for ..he lands described in Item 3'above is hereby l88ued,subject to the provisions 'of the 'oil~r b'nt!o~the revcrse eido horeof, .&~~~D~S!i!~~~':':~.E.~..~lf:..~~ R,LAND 0,::(,0:M/W 1 7 1955 -..(Titfi,---'------.------....-------jiii.i.Or---····.-- 18 U.S.C.see.]001 makes It a crime Cor an7 person knowln,l,.and willfully to make to an,.Department or agency of the UnitedStatesanyCalse.dCUUODS 01'fraudulent statements or representations as to any matter withla Its Jurisdiction. Tbb form ma,.bo reproduClfld provldlld that tb,caplea uo llXBct reprodtlcUons OD ODlllbellt of both aides oftb!lomclal Corm,ln aOCOrdll.DClIwith t.he pro'tblonsof"3 CFR 111:1:.42(a). .I.'_'1~"QT." .' .I"'*~.,I To .'.).'='~. .·:No.9J%A;"+OWNBBIP PLAT-l Pto...:k and For Salo ~'YJjr.d!o:rd·Robin~n Pta'.Co••Deayer TOWllllhip .,5.Q./{tll ,R.ng •....'ls.Jy~~t.County GaY...fi.MrL ,State...CQ.IQY...9 ..d.o.. .......--f-·····f····....1 +.~+.....:-j---f----!-1....···--!-··T·-j--···+_--j-........j..+. -I -"+-j-"+-j-"+-+"+t~'--~--f--"+-l-"T ::i':_j_ ··i·"...1 ,.r 1 }·····f····-j--l---f-~-4--J ~~"'+"'r-+-'"+UT ~-"-I---f-"i-V-f---i-~-j--i-~-f-j"f--~-"-i I I I J :'I I I I I.j'+:I I:I:i---.....--.-...--_.---.--....1·-----"T""···-t·······t-···-'-'r-'-··t········r·-·""'r""""1"'"""r'"""T'".....:...-=+25 _I.30 "29::28:•27 !26!':25:,30-+- I I :1 I ,I r::II,:•••I ~I I :..---..---.--.----."¥'l~lQii'.-.~-..-""'r,"-'..--'1'....""r'"····T···"'Ti---....r·······T·-·....1'j"""-T""'r'""""1""'-'"'T'-I---!-+-+-'_-l",~r:,",:f"rtp.:.I I I I I I I I1-····:-.-....-/--...i~\::'.!...:.;.)",;,V·,i r~'~~..,;;:,d····..)~L"f"---..-j---.....-t--..···+·+·-·1·····...-j ...--...+.. 1--J--36 '\.!..",.~&.,j~W ":\1 •"1m!".,35::36 :31---1--,i"V.':-.,iii '(":i :i :I I,..+..-'-'"....'::~i;ill~'flnl"Ii'\.~.','r ~.K#~l~fi.ii?if'~i~-"T'"-"'f'-" I::I!,I ":,'..:',I I, 1--I---"-4-'---'--+!------~I_··-··--.;.j---·-T-·j·········-r---t_·_--_·r_·_--~····j··-r--i..-.··-·(··3·····[········j..···2 •....f·..·..-.·····li_-_-·_·'i-i-_··_-·~I_·-··-T!_1---·-6'..--··..,~t~··-..-l- i til;!I ,,i i :I j'....1"'.--'-l"··-·t-·--t····j"'"·····r-···-...j_....""j-""·....r····-"T-'""r"....-....····t ..·-··..t ....-....!..-. c...._·--/:···1········-·1···-·..-.++J-.--.····f··..L,····j·····-···1··········1·-·--_..j ·····f·..·..-.1,--.l"._.-""'~I--~-+--!Ii::r :!:!I I I36I,'31,,32,,33,,..34!,35,I 36---e,'--~1--l.,-31 I',.I .I I I I •I,•I I I I",•I " I I I I .I L "---i ------t-------1--·--r-·-------t---------r--·---r-·------f-···-----r---.-_··t----·----1--------r-··----to-------t---···-f-------··r--- .----li'...l·····tl---1...--..-.L 1.__1...1.....L L.-+-·-·J·i'---·...J..--1..---·1·-···-t .L.. I .I·1 !!1 :!~I I'i I !:I l'.6 I I 5::4:I 3 2-1 '6 : .I /I I :!I I I I .:I I I :1 ' ~Jlr~:I~_~-~--~-------~--..-----}_-~----···--i-····--.li ---------~--------f-···-_··.JI~····_{---------f-----..--~---------1-------_.+-----t----- i I !Ii::I',I :i :I :,"I ,I I ••II,'I f I :I ::::J 'I':::.j.II,:I ::I',::::···-rr-..--or····----1--------r--------r-------T-···----fe-e.----r--------T----····1-·······--1---------r-------T--------T---·····-r··--I·····y--- '-1;-12 I '::8:I 9 i ,10!1 11 1 :12::7 :··--1'1~----+,.-------fl---------~-..-··--1-----1!------~I---·I i----.----~--------.~-.-..····1-·---.-.,,+_~---.·····1···---·_·-1·····-~-. ."I'I I ::I •,I:•I ::I I :::I ::, Lease 1f (!/OD75 23'-17.87I"\cyes -----------------------------•• \_r-'.-,.....14./_;. ·o·<_·-Jl:~~,k"233 ."'"-"fage 3,5 2 .,-"",..,~.....,-.......... \ .\,', . Recor"-~pril 21,1955 at 9.35 j... Reoep~10l!11:19332 Ohas;S.Keegax!,rie oord er ,,Font1.4.-213(December 1949)Co -23f' Office Denver,ColoradoUNITEDSTATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT Serial r.o1 orado 01523 HO BOIjU.lIOlICOJIPETITIVE LEASE OF OIL AND-GAS LANDS UNDER THE ACT OF FEBRUARY 25,·1920,AS AMENDED THIS INDENTURE OF LEASE,entered int~,in triplicate,as of the First day of JUN 1951 by and between the UNITED STATES OF AMERICA,through Bur'3au of Land Management,party of the fi'rst part,and ~oe f.~uhan. the 1l3l Palaer Avenue.m.-ood Springs.Colorado. party of the second part,hereinafter called the lessee,under,pursuant,and subject to the terms and provisions of the'act of February 25,1920 (41 Stat.437), as amended,hereinafter referred to as the act,and to all reasonable regulations of ',he Secretary of the Interior now or hereafter in force when not inconsistent with any express and specific provisions herein,which are made a part hereof, WITNESSETH: ,'\SECTION 1.Rights of Lessee.-That the lessor,in consideration of rents and royalties to be paid,and the conditions and covenants to be observed as herein set \ forth,does hereby grant and lease to the lessee the exclusive right and privilege \. to drill for,mine,extract,remove,and dispose of all the oil and gas deposits \\ excl3pt helium gas in or under the following-described tracts of land situated in 1#, 11#</1/ •7 8.R 95 w.,6th P ••••Cclorado...se&.·191 B!~. Seo.201 ~,J!ft8!¢Sec.211 _.~ Seo.221 Lots 2.3.4.5~f9,1O.1l Seo.Z7,Lota2,4,5.l:l!'tHWi.~SlI'f,SF¢S1fi.S!REfswt See.281 Lota 1,2,'B!.SiSeo.29;All Seo.301 Lot 3.SEfREf x x x x Garfield County x x containing 2531.72 acres,More or less,together with the right to construct and maintain thereupon all works,Xbuildings,plants,waterways,roads,telegraph or telilphone lines,pipe lines,reservoirs,t'anks,pumping stations,or other struc- tur,~s necessary to the full enjoyment thereof,for a period of 5 years,and so long the:reafter as oil or gas is produced in paying quantities;subject to any unit agrl3ement heretofore or hereafter approved by the Secretary of th,e Interior,the pro'lisions of said agreement to govern the lands SUbject thereto where inconsisten- cies with the terms of this lease occur • SEC.2.In consideration of the foregoing,the lessee hereby agrees: (a)Bonds.-(l)To 'maintain any bond furnished by the lessee as a condition for the issuance of this lease.(2)If the lease is issued noncompetitively,to ... furni sh a bond in a sum double the amount of the $1 per acre annual rental,but n'6t -' lesB than $1,000 nor more than $5,000,upon the inolusion of any part of the leased land within the geologic structure of a producing oil or gas field.(3)To furnish prior to beginning of drilling operations and maintain at all times thereafter as required by the lessor a bond in the penal-sum of $5,000 with approved corporate surllty,or with deposit of United States bonds as surety therefor,conditioned upon compliance with the terms of this lease,unless a'bond in that amount is already being maintained,or unless such a bond furnished by an approved operator of the : lea:18 is accepted.~ -,(1)I, i,..-...,~.'.,. ,..:~ ipI-.,.::.•••• ••liook ;,tj:3 Pnl~lI353 Until a general loose bond is filed d noncompetitive lossco will bo ruquil'od to furnish nnd maintain a bond in tho pennl sum of not less than $1,000 in those cases in which 1I bond is required by low for the protection of the ownurs of surfaco rights.In all othor cases whcro a bond is not othorwiso requirod,a $1,000 bond 'must be filed for compliance with tho loase obligations not less than 90 days before the auo dato of the next unpaid annulll rontlll,but this requirement may be succes- sively dispensed with by payment of each successive annual rental not less than 90 days prior to its due date. (b)Cooporntivo or unit plon.--Within 30 days of demand,or if the land is within an approved unit plan,in the event such a plan is terminated prior to the expiration of this lease,within 30 days of demand made thereafter,to subscribe to and to operate under such reasenable cooperative or unit plan for the development and operation of the area,field,or pool,or part thereof,embracing the lands included herein as the Secretary of the Interior may determine to be practicable and necessary or advisable,which plan shall adequately protect the rights of all parties in interest,inclUding the United States. (c)Wells.--(l)To drill and produce all wells necessary to protect the leased land from drainage by wells on lands not the property of the lessor or lands of the United States leased at a lower royalty rate,or in lieu of any part of such drilling and production,with the consent of the Director of the Geological Survey, to compensate the lessor in full each month for the estimated loss of royalty through drainage in the amount determined under instructions of said Secretary;(2) at the election of the lessee,to drill and produce other wells in conformity with any system of well spacing or production allotments affecting the field or area in which the leased lands are situated,which is authorized and sanctioned by appli- cable law or by the Secretary of the Interior;and (3)promptly after due notice in writing to drill and produce such other wells as the Secretary of the Interior may require to insure diligence in the development'and operation of the property. (d)Rentals and royalties.--(l)To pay the rentals and royalties setout in the rental and royalty schedule attached hereto and made a part hereof. (2)It is expressly agreed that the Secretary of the Interior may establish reasonable minimum values for purposes of computing royalty on any or all oil,gas, natural gasoline,and other products obtained from gas;due consideration being given to the highest price paid for a part or for a majority of production of like quality in the same field,to the price received by the lessee,to posted prices and to ,other relevant matters and,whenever appropriate,after notice and opportuni ty to be heard.' (3)When paid in value,such royalties on production shall be due and payable monthly on the last day of the calendar month next following the calendar month in wbich produced.Yfuen paid in amount of production,such royalty products shall be delivered in merchantable condition on the premises where produced without cost to lessor,unless otherwise agreed to by the parties hereto,at such times and in such tanks provided by the lessee as reasonably may be required by the lessor,but in no case shall the lessee be required to hold such royalty oil or other products in storage beyond the last day of the calendar month next following the calendar month in which produced.The lessee shall not be responsible or held liable for the loss or destruction of royalty oil or other products in storage from causes over which he has no control. (4)Royalties shall be subject to reduction on the entire leasehold or on any portion thereof segregated for royalty purposes if the Secretary of the Interior finds that the lease cannot be successfully operated upon the royalties fixed herein,or that such action will encourage the greatest ultimate reeovery of oil or gas or promote conservation. (0)Contracts for dispoS.31 of products.--Not to sell or otherwise dispose of oil,gas,natural gasoline,and other prod'ucts of the lease except in accordance with a contract or other arrangcment first approved by the Director of the Geologi- cal Surveyor his representative,such approval to be subject to review by the Secrotary of tho Interior but to be effective unless and until revoked by the Secre- tary or the approving officer,and to file with such officer all contraets or full ,information as to other arrangements for such sales. -2 - •• Book 2'33 <"al;"354 4-213 (December 1949) (f)Statem"nts,plats,and reports.--At such times and in such form as the lessor may prescribe,to furnish detailed statements showing the amounts and quality of ,,11 products removed and sold from the lease,the proceeds therefrom,and the amounts used for production purposes or unavoidably lost;a plat showing development wor):and improvements on the leased lands and a report with respect to stockholders, investment,depreciation,and costs. (s)Well rccords.--To keep a daily drilling record,a log,and complete information on all well surveys and tests in form acceptable to or prescribed by the les~lor of all wells drilled on the leased lands,and an acceptable record of all sub~;urface investigations affecting said lands,and to furnish them,or copies thereof to the lessor when required. (h)Inspeetion.--To keep open at all reasonable times for the inspection of any dull'authorized offieer of the Department,the leased premises and all wells, impl'ovements,machinery,and fixtures thereon and all books,accounts,maps,and records relative to operations and surveys or investigations on the leased lands or undor the lease. (i)Pavments.--Unless otherwise directed by the Secretary of thc Interior,to make rental,royalty,or other payments to the lessor,to the order of the Treasurer of the United States,such payments to be tendered to the manager of the district land office in the district in which the lands are located or to the Director of the Bureau of Land Management if there is no district land office in the State in which the lands are located. (j)Diligence--Prevention of waste--Health and safety of workmen.--To exercise reasonable diligence in drilling and producing the wells herein provided for unless con:,ent to suspend operations temporarily is granted by the lessor;to carryon all operations in accordance with approved methods and practice as provided in the opelcating regulations,having due regard for the prevention of waste of oil or gas or damage to deposits or formations containing oil,gas,or water or to coal mea:mres or other mineral deposits,for conservation of gas energy,for the preser- vat:lon and conservation of the property for future productive operations,and for the health and safety of workmen and employees;to plug properly and effectively all wells before abandoning the same:to carry out at expense of the lessee all reason- able orders of the lessor relative to the matters in this paragraph,and that on failure of the lessee so to do the lessor shall have the right to enter on the property and to accomplish the purpose of such orders at the lessee's cost: Provided,that the lessee shall not be held responsible for delays or casualties oocasioned by causes beyond lessee's control. - (k)Taxes and wages--Freedom of purchase.--To pay when due,all taxes law- fully assessed and levied under the laws of the State or the United States upon improvements,oil,and gas produced from the lands hereunder,or other rights, property,or assets of the lessee;to accord all workmen and employees complete freedom of purchase,and to pay all wages due workmen and employees at least twice each month in the lawful money of the United States. (1)Nondiscrimination.--Not to discriminate against any employee or applicant for employment because of race,creed,color,or national origin,and to require an identical provision to be included in all subcontracts. (m)Assignment of oil and gas lease or interest therein.--To file within 90 days from the date of final execution any instrument of transfer made of this lease, or any interest therein,including assignments of record title,working or royalty interests,operating agreements and subleases for approval,such instrument to take effect upon its final approval by the Director,Bureau of Land Management,as of the first day of the lease month following the date of filing in the proper land office. ~ (n)Pipe lines to purchase or convey at reasonable rates and without discrim- ina~.--If owner,or operator,or owner of a controlling interest in any pipe line or of any company operating the same which may be operated accessible to the oil or gas derived from lands under this lease,to accept and convey and,if a purchaser of such products,to purchase at reasonable rates and without discrimination the oil or gas of the Government or of any citizen or company not the owner of any pipe line, -3 - Doole ~'1) l'''g~355 oporoting a lonno or purchnning or soIling l,roductn undor tho provinionn of the act. ••Jloole2'1) '""t;O )55 oil,gun,naturnl Bn~oline,or othor (0)Resorved deposits.--To comply with all stntutory roquirements nnd regula- tions thoreundor,if tho londn ombrncod horein havo been or nhall hereafter bo dispo'ned of undor tho lawn roserving to the Unitod Statos the deposits of oil and gas thorein,subjoct to nuch conditions as are or may heroaftor be provided by the laws reserving such oil or gas. (p)Reserved or seeroBAted lands.--If any of the land included in this lease is embraced in a reservation or segregated for any particular purpose,to conduct (,perations thoreunder in conformity wi th such roquirements as may be mado by the Director,Bureau of Land Management,for the protection and use of the land for the purpose for which it was reserved or segregated,so far as may be consistent with the use of the land for the purpose of this lease,which latter shall be regarded as the dominant use unless otherwise provided herein or separately stipUlated. (q)Overriding royalties.--To limit the obligation to pay overriding royalties or payments out of production in excess of 5 percent to periods during which the average production per woll per day is more than 15 barrels on an entire leasehold or Bny part of the area thereof or any zone segregated for the computation of royalties. (r)Deliver premises in cases of forfeitu~e.--To deliver up the premises leased,with all permanent improvements thereon,in good order and condition in case of forfeiture of this lease;but this shall not be construed to prevent the removal, 'Blteration,or renewal of eqUipment and improvements in the ordinary course of operati ons. SEC.3.The lessor expressly reserves: (a)Rights reserved Easements and rights-of-way.--The right to permit for joint or several use easements or rights-of-way,including easements in tunnels upon,through,or in tho lands leased,occupied,or used as may be necessary or appropriate to the working of the same or of other lands containing the deposits described in the act,and the treatment and shipment of products thereof by or under authority of the Government,its lessees or permittees,and for other public purposes. (b)Disposition of surface.--The right to lease,sell,or otherwise dispose of the surface of any of the lands embraced within this lease which are owned by the United States under existing law or laws hereafter enacted,insofar as said surface is not necessary for the use of the lessee in the extraction and removal of the oil and gas therein. (c)Monopoly and fair prices.--Full power and authority to promulgate and enforce all orders necessary to insure the sale of the production of the leased lands to the United States and to the public at reasonable prices,to protect the i,nterests of the United States,to prevent monopoly,and to safeguard the public welfare. (d)Helium.-'-Pursuant to section 1 of the act,and section 1 of the act of March 3,1927 (44 Stat.1387),as amended,the ownership and the right to extract h,~lium from all gas produced under this lense,subject to such rules and regulations a5 shall be prescribed by the Secretary of the Interior.In case the lessor elects to take the helium the lessee shall deliver all gas containing same,or portion thereof desired,to the lessor at any point on the leased premises in the manner required by the lessor,for the extraction of the helium in such plant or reduction works for that purp03e as the lessor may provide,whereupon the residue shall be r,~turned to the lessee with no subst&ntial delay in the delivery of gas produced from t:~e well to the purchaser thereof.The lessee shall not suffer a diminution of v:)lue of the gas from which the helium has been extracted,or loss otherwise for wJ1ich he is not roasonably eompensated,save for the value of the helium ext~acted, T:10 lessor further reserves the right to crect I maintain,and operate any and all r'3GUction works and other equipment necessary for the extraction of helium on the prewi3es leased. (e)TakinG of ~oyn1ties.--All rights pur3uant to section 36 of the act,to toke royaltien in ameunt or in value of production, • ,.-4 - •• .2:C'7.Book ;>fl3 4 ••213.Pag~356 (December 1949) tf) and lease Casing.-All rights pursuant to section 40 of the act to purchase casing or operate valuable water wells. (g)Fissionable materials.-Pursuant to the provisions of the act of August 1, 194H (Public Law 585,79th Congress)all uranium,thorium,or other material which has been or may hereafter be determined to be peculiarly essential to the production of j'issionable materials,whether or not of commercial value,together with the right of the United States through its authorized agents or representatives at any tim"to enter upon the land and prospect for,mine and remove the same,making just compensation for any damage or injury occasioned thereby. SEC.4.Drilling and producing restrictions.-It is covenanted and agreed that the rate of prospecting and developing and the quantity and rate of production from the lands covered by this lease shall be subject to control in the public interest by the Secretary of the Interior,and in the exercise of his judgment the Secretary may take into consideration,among other things,Federal laws,State laws,and regu- lattons issued thereunder,or lawful agreements among operators regulating either drilling or production,or both.After unitization,the Secretary of the Interior, or Elny person,committee,or State or Federal officer or agency ~o authorized in the unit.plan,may alter or modify from time to time,the rate of prospecting and devel- opment and the quantity and rate of production from the lands covered by this lease. SEC.5.Surrender and termination of lease.-The lessee may surrender this lease or any legal subdivision thereof by filing in the proper land office a written relinquishment,in triplicate,which shall be effective as of the date of filing subject to the continued obligation of the lessee and his surety to make payment of all accrued rentals and royalties and to place all wells on the land to be relin- quished in condition for suspension or abandonment in accordance with the regulations and the terms of the lease,to be accompanied by a statement that all wages and moneys due and payable to the workmen employed on the land relinquished have been paid.i •.,.•" SEC.6.Purchase of materials,etc.,on termination of lease.-Upon the expi- ration of this lease,or the earlier termination thereof pursuant to the last pre- ceding section,the lessor or another lessee may,if the lessor shall so elect within 3 months from the termination of the lease,purchase all materials,tools, machinery,appliances,structures,and eqUipment placed in or upon the land by the lessee,and in use thereon as a necessary or useful part of an operating or produc- ing plant,on the payment to the lessee of such sum as may be fixed as a reasonable price therefor by a board of three appraisers,one of whom shall be chosen by the lessor,one by the lessee,and the other by the two so chosen;pending such election all equipment shall remain in normal position.If the lessor,or another lessee, shall not within 3 months elect to purchase all or any part of such materials, tools,machinery,appliances,structures,and equipment,the lessee shall have the right at any time,within a period of 90 days thereafter to remove from the premises all the material,tools,machinery,appliances,structures,and eqUipment which the lessor shall not have elected to purchase,save and except casing in wells and other equipment or apparatus necessary for the preservation of the well or wells.Any materials,tools,machinery,appliances,structures,and eqUipment,including casing in or out of wells on the leased lands,shall become the property of the lessor,on expiration of the period of 90 days above referred to or such extension thereof as may 'Je granted on account of adverse climatic conditions throughout said period. SEC,7.Proceedings in case of default.-If the lessee shall not comply with any "f the provisions of the act or the regulations thereunder or make default in the performance or observance of any of the terms,covenants,and stipulations )). hereof and such default shall continue for a period of 30 days after service of written notice thereof by the lessor,the lease may be canceled by the Secretary of the Interior in accordance with section 31 of the act,as amended,and all mate- rial:i,tools,machinery,appli&nces,structures,equipDlent,and wells shall there- upon become the property of the lessor,except that if said lease covers lands known to contain valuable deposits of oil or gas,the lease may be canceled only by judic:ial proceedings in the manner provided in section 31 of the act;but this pro- vision shall not be construed to prevent the exercise by the lessor of any legal or eqUitable remedy which the lessor might otherwise have.A waiver of any partiCUlar -5 - ••Book ?!lJ l'HI;~J57 \ cause ef forfeiture shall not prevent the cancellation aad forfeiture of this lease for any othor cause of forfeiture,or for tho same cause occurring at any other tlmo. SEC.8.nolrs and Sllcce:;sor:1In Interost.-It Is furthor covenanted and agreed elOt each ebligaUon hereund."shall exten.l to nnd be binding upon,and every benefit horoof shall inure to,the heirs,executor5,administrators,successors.or assigns of the respective parties hereto. SEC.9.Unlawful Interest.-It is also further agreed that no Member of,Or Delogote to,Congress,or Resident Commissioner,after his election or appointment, or either before or after he has qualified,and during his continuance In office, and that no officer,agent,or employee of the Department of the Interior,shall be admitted to any share or part in this lease or derive any benefit that may arise therefrom;and the provisions of section 3741 of the Revisod Statutes of the United States,and sections 431,432,and 433,title 18,United States Codo,relating to contracts,enter,into and form a part of this lease so far as the same may be applicable. IN WITNESS WHEREOF: THE UNITED STATES OF AMERICA. , B~~ ActingManager,ColoradoLand Office 7?J25 ) {fAr E~~ ~~~fa.tu~s~ee. Lessee. -6 - , •• "-;'/(J-:~--'.'Eor>k 28) Paf;p.258 Schedule "A" RENTALS AND ROYALTIES Rentals--To pay the lessor in advance an the first day of the month 1:1 ·"hiGh the lease issues a rental at the following rates: (a)If the lands are wholly outside the known geologic structure of a pro- ducing oil or gas field: (1)For the first lease year,a rental of 50 cents per acre. (2)For the second and third lease years,no rental. (3)For the fourth and fifth years,25 cents per acre. (4)For t~sixth and each succeeding year,50 cents per acre. (b)On leases wholly or partly within ,the geologic structure of a producing oil or ga~field: (1).Beginning with the·fi rst lease year after 30 days'notice that all or part of the .land is 'included in such a structure and for each year thereafter,prior to a discovery of oil or gas on the lands herein,$1 per acre. (2)On the lands committed to an approved cooperative or unit plan which includes a well capable of producing oil or gas and contains a general provision for allocation of production,for the lands not within the par~icipating area an annual rental of 50 cents per acre for the first and each succeeding lease year following discovery. Minimum royalty-To pay the lessor in lieu of rental at the expiration of each lease year after discovery a minimum royalty of $1 per acre or,if there is production,the difference between the actual royalty paid during the year and the .prescribed minimum royalty ot $1 per acre,provided that cn unitized leases,the, minimum royalty shall be payable only on the participating acreage. Royalty on production--To pay the lessor 12t per cent royalty on the production removed or sold from the leased lands. The average production per well per day for oil and for gas shall be deter- nined pursuant to 3Q CFR,Part 221,"Oil and Gas Operating Regulations."·r ' In determining the amount or value of gas and liqUid products prod~~d,the",amount or value shall be net after an allowance for the cost of manufacture.'.The. allowance for cost of manufacture may exceed two-thirds of the amount or value of-any product only on approval by the Secretary of the Interior. 189332 • •• 7~o ~-- n. Recorder l ~t.:t.·J. 10 -101 ··~ JHC··7h0 o2 -855 -C OIL AND GAS LEASE .l.CRFf:.\!P.XT, ''•''" ""'' or·• ...i ·"'·· .. ___ ...Jl MlU\.I7._21. _______ , ,.,57..-•• or.! L«••••·---·-- ·--__ r_~~:!1!:3 l_!a_~ __ }£o~.g.t:t _.CJO!:pOr+tion_,._a._ .. OOI::pO·rnt ~on ,_o.:!.J/sa iJh1ngtan,.-D. • .C....------------·--. ""·~~-v i :h• !,r''l( "',;. .. h ,•,rrn .rc l'.-u,l ... d r ... ,,-.-'"'hi'tlu r .. JO, .... , t'J)(J r~· Jr.li . ..S ... H...-.-T..emplet-nn} -1''' 't)att..e.z:..40l:l..-Bldg.) n~zr'Q.:.. 2 J .. C.Ol.ozado.. ______ l'h rl\ ro( th <' ~,.··nn-1 OJllr l. ht-1"t-L I1 1tf• ... r rn'i•·•l ]~'f. .. ~.,-. Wl!N~:~S STH . T n.,, Lhc: '"'J i t ... ·t·r. f•1r ~o~n •l )tl l",n,,rl .. J'll&lmn ·•f ---~~--.. ~~-="{~~::~~~----:-___ -:___ DOLLARS. '"":o-(1 ill h JOn :i ;•tl l•i . L'eC tl ~\ nl '.~o ln.:-h It r.t-l'•b'-' a.o;kn v~'rlttl'tCd. fU Ul u: I hi Ct)~··nli.nl• ntH~ ,j(r,.o•m-'n :S l'!~:-tifla.ftrr C•.lrlt lin~t d ()fl th.-pt.l't of i hU·<t t() b.. 1)41.1, 'At-pl •ntl p ~r/nrm .. rl. h ~' ~"ltrl ~~ll . d.-rr:ln•J. I C'fh~d ""~'~ htl e.r.•! In ".htH ~r .. lli•nll d, .. ~. tlr .. ut. :it:rr'l l 11!', \tl'lt" .anrJ 11't \.ITH~ ·~i d i t Hu, r •• r lht a\)lt t.nd only ~urp o-tt o ( mlT'I-in~ a t1 d O pf'~~t ln '( ft)r o ii a:1i1 fa.•. :t.hci l ll '"'"lil ~ll;•t li n ~• and buUdtf ,!l' u.l\'.t.\, '-"''""'H JU•li ~>n.t. •n•t 1t rw ~nu~• th1r••m l n orodu f;t:. ~•v• a n d u.\u r .. r •. ot u iJ 1•:-,,.A,,u·t• :s.'! t h .. : urhil\ t:-.ct of han•J : .. ~l'!h tr w ith a.nv rc·v ,..re ionar)' rirhu thfltl.n, t i'..\all!d In th.t Cvu.ntt or Jarfie1d .-!PIIk:ribro1 &~.;. (l•!lt.i WI, lO·'W:I : , S tat• ot Colo~ . Ltlts On~ ( 1), lVo (2 L a.id T'..rr'o~ (3);. I:tst H~lf {E}) of ll.e3t Half (\!/~ h a11d W"t~tst full! M) of Ea~t H:tl.f (~!) of Section 'l'fi.n.at~3n (19); Lota Four (h), Jl'i~ (5), S~ven (7) and E~t (8)z South$.l ut Qwu-t~r (SE~) of FlorU!'Jast ~rt.ar {1~~th Sout!".N:.!at Q-uArt'Br (3}-J~) of tho North•:?fl(!t Qv~rt:;;r (NE~); Sl'.d l3 (n'theast Qt:.'lr-toer (NEt) o! th" Sotttiuf:le t Qlarter (su}) of S~;tic;:-. 't"hi.rt,y (JO_, Tmrn::~hlp Sc~nn ('!) South~ R~" Ni:n.oaty-!in (95) Wtist t:Jf tta Sir.Ji Prinr;ip..'l l ?-;'t.!:ridia-"1; c;.....en...-.·== n -~ n. ~3·~ ::::X •nd t ont a l n inz------~•c r •• or , ... ,.. l t h :t.fhl+( t.~a t thU. 1~ t ftall r.m-.tn b /uH lorcc /o r a. L•r-n' u f T~m (10 -----)'•n trom thi• d .. w. •t1d. u \oT"tr thtr*"-hllr ·._~ o;i or 1'•2, or •ithwr ot durn, h produc.O t r,_IT\ u!d l&nd by th• 1~uH or th-. pr~ml ul •:-~ b<ti :l:J d•v 11f0~ ur ('lfHIU~wd.. ln CQrH.iri•n•ti•m ~>f t he fl l'trr.\;u ·t th• "id \c-••w rtl\'cru.nu a,d 'llll'r...-.: 1111 . 'I'h~ \~..,~ •h;al\ t'.l!'li\'~i' h' h·nur .a.) ,...,r . .a lt~·. fr~ 6 t ~c-.L lnln lhr vi pt t;,.lt lo ""'h l~h r ,·~.~u ,,,,. co l'lnt"tl 'u w•ll s t},,.. t'l\.l•t 4. put ot •ll ud prn.1u t" ... ~ ilnd •""fli ~r nm tht lc.t..;uri P'r«tlH~~l . o r •L the-lustv't <'btion . rna)· J,~aY to tht l~s:uo~r t or •~d: •;.,rro1o·alty tt\t mHkl'l ~ric.t tor uU of l i ~~ llt"l.d~ llhd ,.~vitr :P te-· • ""~"" on du da)o' l'.tc,., h i I u ru n n1h> tht ~ipf. hra or i r.~o •tr.J t&~C' unk•. 1n~ Th • l r u H a h all DA)' t •') lcuol· (r,r sr .. • l'rO<iu c:eti f rom i\1"1)' o i: w¥l l tt.n d uud. b)' rht-lr:uu [,;.r lht tnllt\U!.utur., td &-uolin -w o r .. n)' oth u produc\ !l.t royah :o· ~(, o f da tn.:t.l'k~t \")fOior n( •L:t~ f i , •l tht" 1'!10\lth b{ th;r WI' II: \f t-li-ld i:U h tU!d by lht ltU~. !tun U fOt .. lt)' 11. O( t!u· pcocH-d, or th1 Hl.t tkH~( d th'll rno ut.), M t~"l ·.v.-lj _ ":'nw •~uu ll h t \l p:ay l f!'u Ol" .. , r oy.,!ty ~~ c;~ \h~ pro ee wd ~ fro.>m t!H u l<t n/ ;u u 11Uch •t t h • mou !h .,: lht wtll ..,..hH .. gu Ol')ly i • toun<! •nd w~.,.,. t uch · Kn a not -'llh.l or u~t. huur ~oha lt tl">" or tt t'ltlo~o ,· :.anrnna.l;r 1ol t.IH en~ o ( u..:h parlr p't dt)ti duTiro.g ,v hlc:h •·-u;h llU I• not I Qid or u~,.J •• ro)·•h r. •n. •mo\lnt t-qc.'l l.."l t~r rl rl:..y r or r.u l p ro'-·)d ~:d i.'\ th t nut ,t..,;,.•cNdi:-:ll par a:~u.pl'l htrtoO C. .. nd w hih uid ro)'l'.\ty i• t o p•id or Wtu h r •d thi1 lt a:w-"h-.~1 be )uld. u • pr()ducli"''.J 1-ta.k :J,"\J.-r cO..-,.1;--o vot :"·m r;a.r •\C."~l•~ h~•·;,,(; thf: 1•••<•1' to h a ve V'U fru ;,( ,•h.artr from •ny t'olll wtJ ~ o n t h " 1-t&ud sHtmi~ !at f WVH •n4 inJ id• lis"hU in llll' prindp•l Jwtotli"W ·~wHH on ~;oirl l.~<.nd L,· m,.k.i ••X h~• n w.n COII:'I•ction'~ w i t h lbll' wlll'l!. th• UM p/ Juch. :::w t.o be •' the t~·wr·, ..oi• rla'il: &nd ot.a.~n ... -· thh 1-vut •~"H turnin ~t ... ~ lo both put i•. un1H& th. 1 ~...,. 1):.0 o r b...lor~ th..t d-.tt •hall p a.y or t~fld<~r !n lh.-lf"uor . o r t u lhr-l e-~ol''~ c ndit in Th-t Fedtra.J I..o.nd Dank o f Wlchits. llt W khh A. Ka.na.u. o r i t~-I UueMun, v"i.:h ahsll tontin•lt u thr ,.l,~~:p;uitOt"Y ft1n.rdlt:H OJt Ch •nUA i n Lh.-a:•wn.enh{':l of ••id t-..nd. Lh ~ :li'.Jm .,~~JJI1Wd R1.e~·6Ll00.-=.._.!!.....- 00LLAR.S ... 1\l,.n ah&ll OJ>tra•~ u .a r~n t•l a n..S c-.;,·orr tht-pri·tUflri(w or dtft-r!'i:\lf thw cammtnccm•nl ol " ,.;ell for h•eh't mtonth• !rom ~id c.htc. ln t.i!:r.,.. IT\A [ln..r cn-1 u>-vn li.~111 J)'lll\'rT<otntl or t~~il •r~ lr·t-eummtno;:<err\:t:"'t of • .a•~t:l mo,y t. (:J r t:--~r th-f<trrtd ro r h'!t:t i>"=f'i(,l\, or ttl• ••n1 ~ llutnb·u D f rr.c,Oltht aucc...uively. A.ll auth ~&)'IY'tTlV c.~ ttiF'Il~.zo !"l or rtn\.:1.1 rn!l} bt· rn •• ~ .. hy ~h1d• 'lr .,,.,.l't f i r ~~~"'~ (It ~f\)1 o~~..w l~r.n t het·Nf, r::u.il-e'iJ ur t:!*Ji v~rcd on o r lxfore-th& rotnL•I P:lY\l'l 'l r'..-;, "'.'(her rli :-~ct \:J }~.l~r cr ~~~o.•illl'n • oo \0 ., ... ;c dc-;J(·••tcr,-IUr1k AraJ it i• u.ntJ<nlno . .'d and ar r~ the t t~•~ c on•id ,-uiM'I (i rr.t redt~ l'p•;·toin . th~or d '"'·•n p~yl-n'"''''• c ol\l•n r1o:>t only du, pri~·i :·,.,:~ri t':'«.n t~d t~ tr .• ll •C~ •~t·hen u.u.l J;r,~ '"'"~a l b n·~·,.bl~t •~ &!otrlll ic.l. biJ: al1110 !h~ le.t ~e.t '• uPll .)~ o r •:x.t:.~r.d in:tr ch.-.t o-u:o>ct .111..11 a.rQrn~i d. c.nd aos ny s n d a ll ~t.hH r11'1~•• eon(itrT..d. tAt ... .rco tYUi' Il l •r,y lunc "-a.·(\Jl~ -.nd d;ciiYIII::' \<"~ ;~"'or , ut pl•c;l!' o( t'~{H'•I...,. rll:l ~"&•" or rt!t».Oe.t Cl"o\"e-nn,J ..... Y E>Grtinn or por tion• ol .I I'M' 4bo"'' .j.,-.cd~ l):-.rmllW't .. n d th-tr.-b r ~o ur t•r.•S.r lhi:a. lru~ .11'\ "·' •·•"h pvrti•Jn Of ;><~rtk.:l't .lno1 t-t r •tif'ud c.{ .11ll obl.is~ti0:'\1 a.1 to-Uhl ·a.cr~....-1:' •ur,.,adu~. :.ind l~l~f ~.&{tar thtt n ·n>.J.h )ny::lbi ~ t-;•r.un-:i•r ti"i•ll b(' 1'11\Juo:c d io th~ p ropurtlllh l)'UI th~ .~,.,.,.~ co.,.,.r ~~t h .-f'<!Qf'l i .. r....t u c:H b y •aid ul~t.a.lt: o r r•1•• ..... ~h.IJ ·•U ih• /1N1 w•ll dri ll ..... l OJ\ th, -~"'" d .. w-t'i.bot-r1 luod b• • ~f'Y }\,~1•. t~ .. f'l. •nd in lhll.l t•"f\t. ol " M't••td ""'"tl •• lH!l «:•~'M IPC.t.rod g~ ••i•l l•f<!d W1lhln tv.r•lh ~hth~ tr-or. ~fu tll.pl .-.tJc•o c,t thr l...sl r,nt•l ou:ri...-.d (l•r whir:h r-.. r'l~..t&l )".~., 'b...,r, "•h i. .~.u ftt:aw 1<h~ll 1umin.ate-:.• to both v•rC:ic-•. cnlu.a rl\., inln o" ur b.t.tote Jhot ·~Pi'rt!.io:~. c.C t<o\;rt tw•l\"c mor.t h.a 'Jh•ll ror-HJrp.oe the p:&.)':nt-n t o f rr:nla.!:t In t h ~ ••rn• amQ\of\C •nd i.n r.h,-u.na rru.n.ner •II h.,.r•i n'h-rl<•r• pro•·iod t-d. And it lr. q r~ t"'"t upvr, t h .t ruurr.Q \it".-,. ~~r ~~~~ P •:.·:norrtt ol rvnt.: ... a• .. tKn·.! pro .. i.f('ll , tha t \he b .•t 'P !'if'~~..,HnJ o a r•J'r:&t'h hotr.-ui, ttO'~'t-rr.in ~ thif p._)'m•n\ ol t c nhh .-nd thl' ,.,lf «t t•-~l!, ar..:.r.tl I!V..,tin.u~r in fM,..ot-iu•t u t~ou;zh t t"ln<t h~.: k""t"n nl!l·il'l ll'r"r u p ~ion in lh" rt"uul rarnu;,h . J( U.\•! l ~ ... ik.l r t)\Vll l • lt n illttr+,_t \f'\ th'tl! Ab.n•~ d~.:.ri!'w~ bntl t:h ;t.n t ht t r:t irot a.f\.J un\Ji•:id•ci f~~ I IJ'TIJ1~" Nh.U t.,~uln , t l'l.e-1'1 lh11' nn,ltit . ., .anti N-nt..-1.-)utni n p~·u .. i•.llf'd lll'lo.:l b e ;;a.id the 1-H•.•r· (I n !)· ~"1 tlw ~r·~:1arti ·~n ·,o~·~~~~h h i" i:H t'r>!"l t h.t "r ~ ~f · UH wtu,;t 11.11d \HH :i\·,,1 ~~~ i~. Ht.l""""~ .. ,·. ':lim'tt ..-rnf2 1 ll~all h~ in<>n·f.·\<f'~ ~t \h .. ft#&~ ''JC't'Hfhn~ .... ,H .,d illlth ~c r•An· nll,•r ll r.~· 'f'~~ .. :-io r: ().I 'C o t• lt. t'-'o\'lr O n• 1n•~:-..-... l '-tJ fo \'"'uirrti. LH.IH A h~o l l h :.~~ thr ri ~th t \ .. \l,~, fl, .. t: o f ... ro~f. R'•l-. nil. k ro •1 """'"'r pr .. rtul'a•o1 vn ~·jtJ hdll! (,,,. ,,~ C'lj.;r r aLic.n th('t'h)f':l., ~:u::C'{'ol \.\'At ~~ (rom w~ttl .t. Of' !'Oru'l; u ( roi!"i'',...,f , '~'!un rll"r;'.J .... , .. ,, !Jy 1~-....r . !.•<;-~.;:· Jt.i'! h o.~r , i· .. pi 1to: lit• .. ~ } • .-lu.,.. ph•w d•·l\~~~. Lt-,.,...,. .. h .. d : lUY f r•r tiamAj1~ ca H ~,..fi· t,.,· i l :-~ .-·r·rtt tia,ro .. tr. "'(''"'·i nll ~r npc ''" ~nhl lan•l. l ..<Ut't' l".a:l lo:l\! l ht ri1(ht :I~ l.rl'o t im ~ ln l'~m\olo'l" i<l\ rY;fldlir:~."l' IH~\'1 (;:o.U:fa:-' ~~lj.·:tol o')n ""l ri r•r<•ml•·.,p,., ira•\ll•il n,ll l hll' r i~o'~t lr• rlraw a nti l'll"m Ci n• t'"4.i f\lol. rt l)-.r· lt"t.t ~r ~h -.tl t>•.•mrn.l'r~o~,. loo •!ri!: ;, -....·,.'! "' i:~i:l l t\t-Urnt ,.,: t h i ~ 1 .. ,Ut" ~r •c._r ~ll.\<l',.,i o,~r. 'hr!"~·,f. t h ~ IC"'•!oto~ .ah31t h "-.e ti-t ri~ht i:o o1r•i ll t \I Ch ,vr U t1 1 C"rn~lttliOn .,..•i!h f<!'""!l()r.JL t.l !tt dilijr-toC:t' J l\•~ Jt.:t:;_.to~Ch. t..O d ',/ ~nl ,o~t lo(A,., ... r (:'l~Hn' ,,( t~Ho~l'n. t..e fomr.d i r, ;)4i'lll;: •f U.~n t Jii:· ... ()'US !1:11:1~ liht.ll ror,t ifo\!l' ,_h•l t;ot in (,.r,,· ._.ith tl'!~ l:k ot rtr'!rl *-• if I Ut'h w t-11 h~a ~~t r. n•~•P I~t "'d \\111hin l ilt' h:·•·m vf ~·urM h,.ToPin (i~·~t rncn l i <H1 tol rt lhr ~tt~tt· o"lf c ~l)!e r p:uty h rn·toJ i~ trt.ns f~irt"!LI . knd ~ht J •r:~·i l f'C'{e •.! tr&l'\llrr riniif i r1 ·.,_·h nlt ur in nv.rl i,; .,.,,.,~MIY .,.nr,~ •. q.,l. o r i( t ht< ri~hLt ht•rolln.lro r" ••f •ill'\'&!-r lU.rt'l hol'rt:to ;u·-t-v•U l 41!d bt• due.tnl ,,, de-v iJ-t. ,~,. CU\'<n•.;\t.l l'u:r.;t~.C a~a.ll t:lt tornd •·> 11nd tr 'bi1•rl~n,; (Ill tht 1-h•ir:J. d,.,,.;,."~'-,._.~.;-u~ot·.a , .w.c.Jm lr\\Sl l"iLt~rli, .:"~·~r•110,.,., nt ~1-418':,~. h ut no chaf'IZII! in t h e o ·,.·~l'r"'-hiiJ c.( :»Qio1 1.-nd 1.11 ,~( any r i ..:h L hd~tu·.,i .. r '\h DII b" Oinl1i l'l :.t un t iH lt-'Q•"e 11n d l at't.-r In~~ )o::o l to-n ~".JI'f\uta·d .,...11h th1· f?;d ~l:u.l M 11> Ct>Mi(i<'d c OO)' Llnrfflf af •r.>· trJI.nil!.~r b)' l c-:>t,•1 r or \Oo'ith 111 c•rtitid CO:')' • ..t the-willl)f h:•"'-'r tVir ttu ·: with ll tr:s.nac n"'l uf ttu· pr,,;:,,.rt th'"n .. ,r '''· 1n tl'le c:v ant l~ ... ,,r d1n ir;lP,LiLtc t~.n •i hi1 ul;f.t~ 11 hto"~g :.rlm\ni3tto<rctJ, .,.·i~h a n~nsc rip t f\~ th~ a dm;nil'Lr~l i·•n ~···o•:"'td il'l !{a. or. it! O u• <~'~*nl n( tht ~,o~~~o t.h •• r l"~>·"•·r 1\f\tl t'h) .a.d min i:un~i~.~n b.o:i n T£ ~·d on t h~ «.tfrt.Cl". \o\'ith .:..n in H r\H'nt't'll nlh!.H:Ior:-o tl) l ~u tt ~Xfi!C'Ult'd bt l~l'::>ur's ht'i" iLULI'I od s H~il PM)'m e l'll r.r d t pp.:~.t nr t\'nlkf r.q• _d,l·V···"i t tc\ t~e i r c r ?!h l "~ ht:rtin.\l t fOH" prc.vir.f'd, IH lt:.U\ thir1y fiat)''! b~l·•r t ,aid r"t lttJ.h snt l f,]}'li lt if'" ar~ J•nr ab l ~ ,,,. due, •rui )t 1~ ht'tt:h') •lf rn•l Ul the: f lo't ht th1.1 l •~t ttt' :th.a:! bot ~i:,n...:i D.~ tO 11o J))ol"t Ol' 46 h) put!! a ! Lh* •l)t)Ye u~~rl'i ~ IJ<.n d 1 -.~d th ~t a.~l i ~f!H ~Jf 111 H1~1\l'ot:l C.f iUr h '-'1 tl ~r )l~rlJ .)h1.1l (:u J Llr m ~k ll! 1ldauit It\ 'fu • JU)'In i n t of l~~ £oni ~:.O irtiun._l~ p•.-t 1.f lht ,.,.nl1 tlu~ fr,,m him Ul' lht-lll . )U~h cl 1d J.llll :o;hall n1ot UC*t'•".alf;: In rlo:!('a,l or. l.trc-ct lt"ol• lr ~~f' lfl 1..0 r~r •.a.lt Cl"..'l t'f'l A _1'10~1 "r r,.r'fA o ( u~io,! 'andt upon. "Which l hc-.,&irl ;H ,.t-o~: nr Jo.!'IY a.ui~nt-t t huf'of tt'lal l m•l..to .tu• JH••:t•mtnt s ,( ,;.~a.i d rtont iL I<t . I n c~u Jesu~: w:>;q,,. th '.' t~~to'-'t. m ..,.Jt••le-u l' !fl 1•~11'l , •~ J.h•ll bot r<tl;!!-... .:-;1 of a ll obh¥:Hl,·,n.a ...,,th ra·~p.H'C tn Lhc--."~i .rn~d pntt.on <H \:f•tliuf\.\ "''ill iflc 4:Jb•""•u•nr tv the fiAtt',,( •S:nrn mnH:-1( t he I 'I!J.Oii~!L~·Cll.I~I·'-"CL ~--·-'?. ~-J~!.': ~~~~~..!'~~~..!!!..~~-~·-~c , .... ~!-\ 1"1 :.. .. p_!' r~t !~':.~·-H.'.:!:.. v.f.*_f!l.~•!!!.: .• -!1.-t-~! rt.t.!.!!.!'H:..l!.l}L :t. ... kt.A~.!·_r tqv.~ ~!!~ __ O)~ .•. rft t~.~.C.Y..~. ·~,.!!\~~ n.,I..~£U:....,..~nJ!_o-.-.. ro:;"' I hl'.-~ :-h rd t ,..., __ _ l!!J!L L~·("" a otO),nt~ owo~r'lnl'll:r-p !' .. r,-,-=-:wn rn .... ~~ .. ur"'"»"" (I...: (I~ .h.x.__.!ljw:f .. ~~ th ... l"nJ:ri.:Lh•.~·ru. T):trf' :'.t'IIO ·I ••• fl •• l'bt ~)(l\.~hll'l u!'l th .. pud n! th~ ~l" u(f...cl ...,t:fl. n n ae (')at ~t-i•llfJ( ·i--r.T"~~;;;;r~rf:i thior l.raN,. mM'' ), .. t .. .~~o!t,.r h, ltl\·ul~ hy ~"'" ~ ... ~ :~,· .• ,,. u•h~·•'"''"~'· Hr lu ''1'1\l"h "t'l'"*,.''" ntf'~·:liU I'lnJC 1..11 r~l'l'ln J L.-ni:• fu r d··• .,~1 !•ro •~hH'•"'I.l {rorn t u..:t-. -1'-'''ll.l~ tr •c-~t . ~)r h•nbJ' 1\fl"...,. th11 t lt-'.1: It'~ 1lu .U h .a vc the r i3rht '' •r.JI time t a• t .-dHm leu ;,.. • .,r D>' p.,.,-,.,..,.nl . •nr h'lorts;•.c ..... t ... ~ c::~r 11th",..r 1i«-n• on lh« abov~ dH<rib.d l•n$, In LiH t ~<~~nl o f deh.ult o~ ~;~;om-rnt 'Qo )' lor.,..or, an..! b,. aub n ,.-.h .. l \) th• r i ~hu ,.( l h f' t\()ldoo~r ~h .. n-vr s mt tnAY h·imbu~ •t-lf ~rum an )' r.n U.l o t tO)'&hi.eot •o!erulbl' h .. :-eu:..d·n. ·. ~r '-WTH~ l4 "'.,,,...n t •nd d~(""'' t h e t [t ]~ ,c;; tta ut.Jf)t ~! it... i.nttru' onll u &&:t.i rut all p.tt"'O na el•«minr \a)·. th ro~;-h o r u nd ~r it. "['b.q W:-ma, r..o-...n .. nta, •ltd cond ition.a h~T'IrOt ahaU run .,..i:b •• .dd land *"41 h.-" ..... tth a nJ •h•ll ~ blndiH2' wPQn th-. p•rti..-. hc-r"t"'. l hrir h .. i ~. 4dminla\t;s.tQN.. :d-1-vO..W... E~4<q.~n. a.u~rs a nt\ ~w.i;taa: ho-.-f'ver, .u a ;aprllli+ or lmpli..d eov•n.,nla o( t h i.a l hU •hall b<t n t bjorel ~o t.ll )-',..lttora l :.rui Stn ••· 1.:.~,·.-, J:•<~H"utiv~t · O,O.n, R ~o~.M. or ~!-4,tJ o"r.a, 11-Ud thl• ~••.w dull ll Vl be t«nnin•t.d. )n 1'1'ho l., .:-.r ifl pan. nm· l"".w ht'ld li11hle l(lt (.-il\ll't' t .. <"u m ~·h 1 P-o ·r •·\\'i 1 1· ,( , .. n.nh ~n .. .-i1>1 · P"""&"').MI .. l'. or-It u~oeh hHu~ ia l h r. rblu!t ot. "'"1 •vch l..a>Jt , O nJrr. R ul• o r ~n.dillL~on. ~r . 1:--.· wn?-~t.s:; WH ~:cn:o r. w~ ~-iJtn '" ... 1 .. ) ""~.......... . ' :.nct r .-ar n..-~t 2;b,,.,. wrilf .. n . "--·----.. ------~--·~·~ ... __