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HomeMy WebLinkAbout6.0 BOCC Staff Report(Revised) 09.08.1997PROJECT INFORMATION AND STAFF COMMENTS REQUEST: APPLICANT: LOCATION: SITE DATA: WATER: SEWER: ACCESS: EXISTING ZONING: ADJACENT ZONING: BOCC 9/8/97 Special Use Permit for the extraction of natural resources - timber_ The Colorado Timber and Land Company. Tracts of land located in portions of Sections 32, T6S, R100W and portions of Sections 5, 6, 7, and 8, T7S, R100W of the 6th P.M.; located on Kimball Mountain, generally north of County Road 202. 1899 acres +/- (640 acres subject to logging under this application) Will not be used Will not be used County Road 202 (Kimball Creek Road); other public and private access. R/L: Resource Lands - all categories. R/L; 0/S I. RELATIONSHIP TO THE COMPREHENSIVE PLAN The subject sections are not included on the Garfield County Comprehensive Plan's Management Districts Map (1981; 1984 Plans). However, due to similar terrain, it is possible to infer the following designations: District C - Rural Areas/Minor Environmental Constraints and District F - Rural Areas/Severe Environmental Constraints. See map, page 7 . II. DESCRIPTION OF THE PROPOSAL A. Site Description: The subject tract is located in a physiographic province known as the Colorado Plateau, typically a deeply dissected region of steep ridges capped by comparatively level mesas. The general area proposed for logging is very remote, located approximately 20 miles northwest of DeBeque, on Kimball Mountain. The bulk of the timber proposed for extraction is located on the north- and east -facing slopes of western Kimball Mountain, where slopes have been calculated to be between 50% and 75% (between 27 degrees and 37 degrees). See topographic map, page B. Adjacent Land Uses: The majority of the land uses, on private lands, are devoted to ranching and the oil and gas industry. The Bureau of Land Management administers sizeable tracts adjacent to the applicant's property. C. Long Proposal: The applicant proposes a helicopter logging operation on private lands constituting 1899 acres, 640 acres would initially be logged as a pilot project. The proposal is considered to be experimental and is an effort to determine if helicopter logging can be economically operated. Up to 60% to 70% of the trees in an area designated for logging would be felled, then flown to an area on the valley floor and removed via trucks along existing private and public roads. Except for days when weather interferes with economic and safe operations, the applicants expect to log year-round, expecting to operate the helicopter approximately 140 days of the year. See attached Timber Harvesting Nan. M. REVIEW AGENCY/PUBLIC COMMENTS The application was referred to the Colorado State Forest Service, Bureau of Land Management and the Road and Bridge Department. No comments have been received. IV. MAJOR ISSUES AND CONCERNS A. Roads/Access: Access to the areas proposed for logging would be from County Road 202 (Kimball Creek Road), which would be utilized as the sole hauling route to Roan Creek Road (CR 204) and Interstate 70. The road has recently been asphalt -surfaced from its intersection with CR 204, to the bridge crossing Roan Creek, which grades to an improved dirt road west of Roan Creek. These access roads cross at least four (4) bridges/cattle guards that, in some cases, are more -narrow than the road itself, with some crossings limited to a single lane. There are no posted weight restrictions at any bridge, therefore weight capacities are unknown. The proposed logging operation would require access across adjacent, public and private Iands, and access easements have been granted. The Bureau of Land Management has approved an access permit for intervening land between the area subject to Ioggring and a privately -owned parcel. Likewise, the owners of the private parcel have granted an easement for shared access, which together, the permits pr vide accsss to the county road system. See BLM and Maralex agreements, pages . Staff notes the BLM agreement is approved for five (5) years, the Maralex agreement is approved for one (1) year. Since the logging proposal is to use a helicopter to transport the felled timber, the applicant is not proposing the construction of any new roads. The timber would be 402. flown to an unspecified location (owned by the applicant) in the Kimball Creek valley and loaded on trucks for transport to Interstate 70. B. Logging Method/Timber Harvest: Due to slope of the tract and other concerns, the applicant proposes to utilize a helicopter to move the felled timber to the point it would be Ioaded on trucks. The helicopter aspect is considered experimental and if it is determined to be economically feasible, the logging operation would likely be expanded. The initial phase contemplates harvesting up to 2,240 (MBF) of Douglas fir, within an area of 640 acres, 400 acres of which would be subject to logging. Slope/Soils: The slope of the individual parcels proposed for logging varies, generally ranging between 40% and 70%, but in at least one instance, up to 75%. The soils on these slopes have been identified by the Natural Resources Conservation Service to be within the Utso-Rock Outcrop complex, a soil unit derived from the Green River shale. This soil is considered to have severe constraints due to the excessive slope, creating significant erosion hazards and limiting the use of certain types of mechanical logging equipment, especially when the soil is wet. D. Industrial Operations Classification: This type of Special Use Permit application falls under the Extraction classification as defined in Section 2.02.31(1) of the County Zoning Resolution and is therefore required to meet certain Industrial Operation and Industrial Performance Standards, as further defined in Sections 5.03.07 and 5.03.08. These sections require an impact statement address certain parameters affecting, or affected by, the proposal and shall address the following (from Section 5.03.07): 1. Existing lawful use of water through depletion or pollution of surface run-off, stream flow or ground water. The impact statement suggests a buffer zone of 50 feet of a year-round stream, Kimball Creek, the only year-round stream that would be affected. 2. Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare, or vibration or other emanations. Noise is expected to be generated by helicopters operating over the site, which the applicant states should be contained within the property boundaries, with no negative impact occurring to adjacent properties. Dust would likely be generated by trucks as they enter and leave the site via County Road 202. The use of magnesium chloride is proposed, "close to residences;" however, the term "close" is not defined. 3. Impacts on wildlife and domestic animals through the creation of hazardous attractions, alteration of existing native vegetation, blockade of migration routes, use of patterns or other distributions. The application suggests impacts to wildlife and domestic animals would be of short duration; however, would be mitigated by grass seeding and the release of native vegetation to increase the browse for these animals. The applicant has not consulted the Division of Wildlife (DOW), therefore it is impossible to predict the amount of disturbance caused by the removal of the existing, native vegetation. The applicant suggests that immediate impacts to wildlife may be negative, but would be mitigated by the increase in browse and an overall improvement of habitat. Apparently, there is some concern for raptor nesting sites throughout the area proposed for Iogging, which the applicant states a nesting survey would be accomplished in the spring to determine potential impacts. 4. Affirmatively show the impacts of truck and automobile traffic to and from such uses and their impacts to areas in the County. The application predicts eight (8) highway legal, logging truck round -trips, per day, noting that these vehicles are required to pay taxes for usage of the roads. Additionally, the applicant is proposing a $100,000 bond to cover road damage attributable to this project. 5. That sufficient distances shall separate such use from abutting property which might otherwise be damaged by operations of the proposed use(s). The applicant states that no impact will occur to adjacent lands as all operations would occur within lands owned by the applicant. 6. Mitigation measures proposed for all of the foregoing impacts identified and for the standards identified in Section 5.03.08 of this Resolution (Industrial Performance Standards). This section requires that the proposed industrial operation comply with applicable County, State and Federal regulations concerning water, air and noise pollution, and shall not be conducted in a manner that would create a public hazard or nuisance. It appears that the applicant has considered the various impacts that are likely to be generated from this proposal and has attempted to address these impacts. In staffs opinion, the use of helicopter yarding is preferable to the development of a network of roads across very steep and sensitive lands. Additionally, the scope of this project is relatively small, which should enable the applicant to assess the profitability of the enterprise before future expansion. Further, the application suggests the use of a staff forester who would oversee logging operations. Staff suggests this be made a condition of approval. V. SUGGESTED FINDINGS 1. That proper publication and public notice was provided as required by Iaw for the hearing before the Garfield County Board of Commissioners. _4_ 2. That the hearing before the Board of County Commissioners was extensive and complete, that all pertinent facts, matters and issues were discussed within the Special Use Permit application and the public hearing. 3. That the application is in compliance with the Garfield County Zoning Resolution of 1978, as amended. 4. For the above stated reasons, the proposed land use is in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County. VI. RECOMMENDATION At its August 13, 1997 session, the Planning Commission recommended APPROVAL of the Special Use Permit, for the pilot project logging operation, on Section 7, T7S, R100W, pursuant to the following conditions: 1. That all representations of the applicant, either within the application or stated at the meeting before the Board of County Commissioners, and contained within the forestry plan, shall be considered conditions of approval. 2. The haul route for timber and all overweight service vehicles will be approved by the County Road & Bridge Supervisor. Additionally, an overweight vehicle permit will be acquired for each vehicle needing such permit, prior to commencing operations. 3. That the forest management practices and revegetation will be monitored for compliance with the proposed Timber Harvesting Plan by a staff forester, hired and paid by the applicant. 4. That the access easements granted by the Bureau of Land Management and Maralex Resources shall be kept in force for the duration of the logging activities and all approval conditions of said easements shall be met. 5. A road bond of $100,000 will be placed with the Road and Bridge Department, to be used for the repair of CR 202 and 204, from damage attributable to the applicant's activities. The bond shall be valid for the period of time that the applicant is actively logging on the property. 6. This Special Use Permit is subject to review for compliance or noncompliance with performance requirements associated with the issuance of the Special Use Permit, prior to permitting additional acreage subject to timber harvesting. The applicant will be required to submit a report one year from the date of a resolution of approval, indicating the measures taken to comply with the performance requirements of the permit. The Board of County Commissioners will review the report, in a public meeting, within 30 days of receipt of the report and may determine that a public hearing is necessary to consider expansion of the permit or development of additional approval conditions. All vehicles used in conjunction with the logging operation, and operated on Garfield County roads, must be licensed or apportioned in the State of Colorado, through the Garfield County Clerk & Recorders Office. 8. The hauling of logs will be discontinued during normal times for local ranches to safely transport livestock along County Roads 202 and 204. There will be no harvesting of aspen trees form the site, with the exception of the incidental cutting of trees, as approved by the staff forester. 10. All revegetation of the site shall be done with certified weed free seed mix. /1. SL.4 S!1 'CA; L)44"- 6 C 1,14 5 _ 1 Z. hyN'[,/,/C4s 1r's coo/ iZt-" PV ritritiA(AiGy A ef 1,1 di SIJA AZ A LGo,--' lS4i7 Jl;' AMAI/6-9 /07 ale ' 6' 2 1 ' 1 i • '!„'' • I • , ' -• 1 ln• i I . „ 4 - - I • • • -•, • ; .• '• r•• • • I ; / j, • „ •• • S ry14 • ••• ei • 1 ; • •1.y — . •1l1P, n ••••• -;.11 I .1,11 J • •V• ,i5•••••: A 1.• ••• , • • • • 4' 1EOLOGICAL SURVEY m 0 0 'n 1 tE TAKES United States Department of the Interior MlcA ISM IN ..rt r ItFFEK'IO 1i1J121A11 OE [AND MANAGEMENT (:ruu! �uuttiun RCM .trce Aica 2815 11 Road Grundlunction, Gnlne'adu 81506 CERTIFIED MAIL NO. P 361 414 394 RETURN RECEIPT R51h1ESTED Colorado Timber and Land Company, RLLP P.O. Box 1223 Glenwood Springs, CD 81602 Attn: Ms_ Shirley Chavez DECISION Right -of -Way Grant COC -60319 Issued Rental Determined :.� COC -60319 2800 (7--6801 Enclosed is a copy of right-of-way grant serial number C0C-60319 which has been approved by the Bureau of Lund Management. The rental for linear right- of-way is determined according to reguiations found at 43 CFR 2803.1-2. The Cental toc the above -referenced right-of-way is $64.51 fox a tive year terns, adjusted for calendar year billing. A copy of the rental determination forts is enclosed. All processing fees and rental have been received. 'I'he issuance of this right-of-way grant constitutes a final decision by the Bureau of i,and Management in this matter. This decision may be appealed Lo the Interior Board of Land Appeals in accordance with the regulations in Title 43 of the Code of Federal Regulations, Part 4.400 and the enclosed form CSO 1840-3. The form also includes instructions for requesting a stay of the decision appealed. If an appeal is takers, the notice of appeal must be filed in this office at the above address within 30 days from receipt of this decision. The appellant has the burden of showing that the decision is in error. Enclosures (2) 1 - R/W Grant 2 - Form CSO 1840-3 Sincerely, '1 )fid"c�,l�(%, Catherine Robertson Area Manager Form 2900-14 (August 1985) issuing Office Grand Junction Resuurce Area UNITED STATES DEPARTMENT OF T1l1? INTERIOR BUREAU OF LAND MANAGEMENT RIGHT-OF-WAY GRANT/TEMPORARY USE PERMIT SERIAL NUMBER COC -60319 1. A right-of-way is hereby granted pursuant to Title V of the Federal Land Policy and Management Act of October 21, 1976 (90 Stat. 2776; 43 U.S.C. 1761). 2 Nature of Interest: a. By this instrument, the holder: Colorado Timber and Land Company, RLLP P.O. Box 1223 Glenwood Springs, CO 81.602 receives a right to construct, operate, maintain, and terminate an access road, on public lands described as fellows: Si Principal Meridian T.7 S., R.100 W. Sec. 8: Nr/SW4, b. The right-of-way or permit area granted here is 20 feet wide, 2275 feet long and contains 1.10 acres, more or less. c. This instrument shall terminate on fe.0ru'3LYvA 1'7 20O ,. upon 5 years from its effective date unless, prior thereEo, it is relinquished, abandoned, terminated, or modified pursuant to the terms and conditions of this instrurnent or of any applicable Federal law or regulation. d. This instrument may be renewed. If renewed, the right-of-way or permit shall be subject to the regulations existing at the time of renewal and any other terms and conditions that the authorized officer deems necessary to protect the public interest. c. Notwithstanding the expiration of this instrument or any renewal thezeof, early relinquishment, abandonment, or termination, the provisions of this instrument, to the extent applicable, shall continue in effect and shall be binding on the holder, its successors, or assigns, until they have fully satisfied the obligations and/or liabilities accruing herein before or on account of the expiration, or prior termination, of the grant. 3. Rental: For and in consideration of the rights granted, the holder agrees to pay the Bureau of Land Management fair market value rental as • determined by the authorized officer unless specifically exempted from such payment by regulation. Provided, however, that the rental may be adjusted by the authorized officer, whenever necessary, to reflect changes in the fair market rental value as determined by the application of sound business management principles, and so far as practicable and feasible, in accordance with comparable commercial practices. eIr COC -60319 P.2 4. Terms and Conditions: a. This grant or permit is issued suhject to the holder's compliance with all applicable regulations contained in Title 43 Code of Federal Regulations part 2800. b. Upon grant termination by the authorized officer, all improvements shall be removed from the public lands within 90 days, or otherwise disposed of as provided in paragraph (4)(d) or as directed by the authorized officer. c. Each grant issued for a term of 20 years or more shall, at a minimum, be reviewed by the authorized officer at the end of the 20th year and at regular intervals thereafter not to exceed 10 years. Provided, however, that a right-of-way or permit granted herein may be reviewed at any time deemed necessary by the authorized officer. d. The map and stipulations set forth in Exhibits A and 0 attached hereto are incorporated into and made a part of this grant instrument as fully and effectively as if they were set forth herein in their entirety. e. Failure of the holder to comply with applicable law or any provision of this right-of-way grant or permit shall constitute grounds for suspension or termination thereof. f The holder shall perform all operations in a good and workmanlike manner 5o as to ensure protection of the environment and the health and safety of the public. IN WITNESS WiIEIi1OR, The undersigned agrees to the terms and Conditions of this right-of-way grant or permit. Signatureof HolderI ignature of uthorized Officer ) rr Tirtle Area Manager Title (pate) (Effective date of Grant) EXHIBIT B COC -60319 P. 1 of 2 STIPULATIONS 1. The holder shall request a prenotification conference with the authorized officer at least two days prior to the commencement of access road use under this grant. The contact person is Tom Bargsten at the Grand Junction Resource Area office, phone (970) 244-3030. 2. All maintenance or road improvement activities shall be confined to the right-of-way; in no case will such activities take place outside an area exceeding 10 feet from the centerline of the existing road. 3. The road and ROW shall be maintained in as good or better than existing condition. This may include, but is not limited to, blading the roadway and maintaining borrow ditches and drainages. Stabilizing the running surface with gravel may be done at the discretion of the Grantee. 4 The holder shall promptly remove and dispose in an authorized sanitary landfill, all waste generated by its activities. Waste includes, but is not limited to, human waste, trash, garbage, petroleum products, ashes and equipment. No burning of trash, trees, brush or any other material shall be allowed_ 5. The Grand junction Resource Area Manager will be notified at least 30 days prior to coumieuuzng reclauration work upon relinquishment or expiration or the ROW grant. The holder shall contact the authorized officer to arrange a joint inspection of the ROW. This inspection shall be held co determine an acceptable abandonment and reclamation plan if needed. This plan may include recontouring and seeding. The authorized officer must approve the plan in writing prior to the holder's commencement of any abandonment activities. 6. Use of pesticides shall comply with the applicable Federal and State laws. pesticides shall be used only in accordance with their registered uses and within limitations imposed by the Secretary of the Interior. Prior to the use of pesticides, the holder shall obtain from the authorized officer written approval of a plan showing the type and quantity of material to be used, the pest(s} to be controlled, method of application, location of storage and disposal of containers, and any other information deemed necessary by the authorized officer. Emergency use of pesticides shall be approved in writing by the authorized officer prior to such use. STANDAR❑ 5'1'1PULATIONS 1. Any cultural and/or paleontological resource (historic or prehistoric site or object) discovered by the holder, or any person working on his behalf, on public or Federal land shall be immediately reported to the authorized officer. [solder shall suspend all operations in the immediate area of such discovery until written authorization to proceed is issued by the authorized officer. An evaluation of the discovery will be made by the authorized officer to determine appropriate actions to prevent the loss of significant cultural or scientific values. The holder will be responsible for the cost of evaluation and any decision as to proper mitigation measures will be made by the authorized officer after consulting with the holder. COC -60319 P.2 of 2 2. Pursuant to 43 CFR 10.4(g) the holder of this authorization must notify the authorized officer, by telephone, with written confirmation, immediately upon the discovery of human remains, funerary items, sacred objects, or objects of cultural patrimony. Further, pursuant to 43 CFR 10.4(c( and (d}, you must stop activities in the vicinity of the discovery and protect it for 30 days or until notified to proceed by the authorized officer. 3. The holder shall comply with all applicable Federal laws and regulations existing or hereafter enacted or promulgated. In any event, the holder shall comply with the Toxic Substances Control Act of 1976, as amended (1S U.S.C. 2601 et seq.) with regard to any toxic substances that are used, generated by or stored on the right-of-way or on facilities authorized under this right-of-way grant (see 40 CFR, Part 702-799 and especially, provisions on polychlorinated biphenyls, 40 CPR 761.1-761.193). Additionally, any release of toxic substances (leaks, spills, etc.) in excess of the reportable quantity establi.hed by 40 CFR, Part 117 shall be reported as required by the Comprehensive Environmental Response, Compensation and Liability Act of 1960, Section 102b. A copy of any report required or requested by any Federal agency or State government as a result of a reportable release or spill of any toxic substances shall be furnished to the authorized officer concurrent with the filing of the reports to the involved Federal agency or State government. 4 The holder shall comply with applicable State standards for public health and safety, environmental protection and siting, construction. operation and maintenance, if these State standards are more stringent than Federal standards for similar projects. / •, , rG J:9' / / ' X11• / / / ) f � / 1 Dasa. • • Li t ;flli ._:<_§.,, r 5111 vv? e - •\. ------ 1, . 7 ..___-:,. _'2%--1,7---1. I '.1.1',i:': ,:.-----------.%'; if) • a —1� -‹<-77;-------;',,',,, ! -7" — —' \ ._. - ate. no a1��r� _`\�lli4 ^ r • I ��s ''-f ossa ``�/I if/ff .r • ;;)". II et -oar I r 59ce Dice Zre. Determining 1997 Rent under Rental Schedule Electric Lines, Telephone Lines, Non -Energy Pipelines, other Linear Rs/W Serial No _ C0� 60 3/5 Name (Grantee) �}D • �v + �c G. az. A Co. ID No_ County(s) Case Type Anniv. Date Expiration Date Next Bill Date Length a?S Width Acreage i0 Determine the 1997 (12 months) rent for the R/W by multiplying the number of acres in each appropriate zone by the rental rate for that zone: Zone 3: Mesa, Garfield, Montrose, Routt, Rio Blanco 1,f acres x 11.93= $ 13 .}2 Zone 5: Eagle, Pitkin acres x 23.86= $ Total $ j3 ,L2. Part Year Factor Adjusted Rental 1997 Total (T) $ 13 .IZ x 0.9167 = $ 12.03 Subtotal 5 -Year Lump Sum (Annual Rentals less than $100) 4 x 1997 Total Partial Year Total Amount Due $lz_a3 $ 6'4.51 Part year factors are: months 1.000 8 months 0.6667 4 months 0.3333 1 months 0.9167 7 months 0.5833 3 months 0.2500 0 months 0.8333 6 months 0.5000 2 months 0.1667 9months 0.7500 5 months 0.4167 1 month 0.0833 (( G � Prepared bar Date CSO 1840-3 (Tuna 1993) UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT INFORMATION! ON TAKING APPEALS TO THE BOARD OF LAND APPEALS DO NOT APPEAL UNLESS 1. This decision is adverse to you, ANO 2. You believe it is incorrect. IF YOU APPEAL, THE FOLLOWING PROCEDURES MUST BE FOLLOWED 1. NOTICE OF APPEAL Within 30 days file a Notice of Appeal in the office which issued this decision (see 43 CFR 4.411 and 4.413). You inay state your reasons for appealing, if you desire. 2. WHERE TO FILE NOTICE OF APPEAL WITH COPY TO SOLICITOR REGIONAL SOLICITOR ROCKY MOUNTAIN REGION P.O. BOX 25007 DENVER. COLORADO 80225 WITH COPY TO DEPARTMENT OF THE INTERIOR BOARD OF LAND BOARD OF LAND APPEALS APPEALS 4015 WILSON BLVD. ARLINGTON, VIRGINIA 22203 3. STATEMENT OF REASONS 4. ADVERSE PARTIES Within 30 days after filing the Notice of Appeal, file a complete statement of the reasons you are appealing- This must be filed with the Interior Board of Land Appeals, at the above address (sec 43 CFR 4.412 and 4.413). If you fully stated your reasons for appealing when filing the Notice of Appeal, no additional statement is necessary. Copies of your statement of reasons must be filed with the Solicitor at the above address. Within 15 days after each document is filed, each adverse party named in the decision and thi Regional Solicitor or Field Solicitor having jurisdiction over the State in which the appeal aro must be served with a copy of: (a) the Notice of Appeal, (b) the Statement of Reasons. and (c) any other documents filed (see 43 CFR 4.413). Resources, Inc.. 621 17th Street. Suite 1125 Denver, Colorado 80293 (303) 292-5636• .: FAX (303) 292-5382 'July 28, 1997. Shirley Chavez General Partner.' • The Co1oredo. '*',::Ler and Land Company,RLZP Remington Scuar_eBusiness Center 129 West 4th Street • Rifle , CO 81650. - P.O. Sox 338 Ignacio, Colorado 811.137' (970) 563-4000 PAX (970): 563:4116 OA F La ._..,4-'1\17Y RE: Right -Of -Way Agreement Dear Shirley: Enclosed is a copy of Maralex' Resources., Inc. ` s letter dated July 1997, which has been fully executed and agreed to by .. Harold" C.: Dougherty, John V. Dougherty. -and . Elizabeth Stoller Theletter: 'in effect authbrizes The • Colorado Ti-nber. .and Land Company, RLLP• to share the right -of --way granted on behalfof saidparties to Ma .-ilex Resources, Inc. Since' -el y, elanie Mb Land. Manage is , CPL ARALEX Resourcas, Inc. 621 171h Street, Suite 1125 Denver, Colorado 80293 (303) 292-5636 FAX (303) 292-5382 John V. Dougherty 1453 12-1/2 Road Loma, CO 81524 -VN Ranch c/o Elizabeth Stuller 2270 J Road Grand Junction, CO 81505 July 15, 1997 Harold C. Dougherty, 2250 J Road Grand Junction, CO 81505 RE: Right-of-way Agreement dated April 1, 1991 Sections 8, 9 and 17, T7S-R100W Garfield County, Colorado Ladies/Gentlemen: P.O. Box 338 Ignacio. Colorado 81137 (970) 563-4000 FAX (970) 563-4116 Al JUL28jg7 t. Reference is made to the above Agreement between yourselves Gathering System Company. Maralex Resources, Inc. succeeded interest of LFC effective October 1, 1996. and LFC to the Recently The Colorado Timber and Land Company, RLLP, approached Maralex with a request to share the right-of-way across Section 8 to access the Dale' Albertson property where they have contracted to harvest timber. Colorado Timber has estimated it will take no more than one year to complete the work. They plan to remove the timber primarily by helicopter from the Albertson property. Maralex is agreeable to sharing the right-of-way with Colorado Timber and has prepared an agreement made expressly subject to the terms of our Agreement dated April 1, 1991. The agreement with Colorado. Timber specifically states that any damages or injuries caused by them must be remedied to your satisfaction. Therefore, it is our opinion that it is not necessary for you to sign a separate agreement with Colorado Timber. Please document your agreement to have Colorado Timber share the right- of-way by signing and dating where indicated on the following page and returning one copy of this letter to the above Denver address. Thank 'you for your assistance. Very truly yours, Ill Melanie Morris, CPL Land Manager John V. Dougherty Harold C. Dougherty -V Ranch July 15, 1997 Page 2 THE UNDERSIGNED HEREBY CONSENT TO THE COLORADO TIMBER AND LAND COMPANY, RLLP, SHARING THE ABOVE REFERENCED. RIGHT-OF-WAY. ) " ,yt,' hn V. Dougherty' arold C. Doughrty c,L Date imb /9 •• ua .� - 7 7 ARALEK: Resources, Inc. 621 17th Street, Suite 1.125 • Denver,. Colorado 80293 (303) 292-5636 FAX (303) 292-5382 July 25,: 199'x. ".Shirley: Chavez General'Partner The: Colorado Timber.:and Land Company, RLLE,. Remington.Square:Business Center 129 West 4th Street Rifle, 00 81650 RE: Right -0f -Way Agreement Dear Shiriey.: P.O: Box 338` Ignacio, Colorado 81137;. ,. (970) 563-4000 • FAX (970) 563:4116. :--„.L,J el '6 -, 1 ii” Grin=.r `SLC 'c . Attached is the- right-of-way agreement which .has been'. fully. executed -by "both parties. T have enclosed a: second;.' original agreement for you to sign. and record. The one I received from you: -had an error on thenotary; acknowledgment. As :soon. as we_.receive :the.. Dorugherty et al . letter,.- I will forward a. copy - to- you. When I spoke with Harold' about the letter, he sounded most: agreeable :to s igning...it . Again, please. accept our sincere apologies for ...our delay in. getting' this agreement: out. to you. It came upon us at. a Very busy time ..and ... we , have been extremely short handed this year. If . you have: any .questions.oc if I can assist you in ary.way; please call me...: Lely, r.. \ I jL Melanie Morr_s, CnL:. Land Manager'. . �L c AGREEMENT THIS AGREEMENT is made and entered into as of this t.„.1 day of 1\1 , 1997, by and between MARALEX RESOURCES, INC., with offices( at 621 Seventeenth Street, Suite 1125, Denver, Colorado 80293 (hereinafter called "Maralex"), and THE COLORADO TIMBER AND LAND COMPANY, RLLP, Remington Square Business Center, 129 West 4th Street,- Rifle, treet,Rifle, Colorado 81650 (hereinafter called "Colorado Timber"). WHEREAS, Maralex owns a right-of-way (hereinafter called the "ROW") providing for access through, among other lands, Section 8 of Township 7 South, Range 100 West in Garfield County, Colorado, pursuant to the terms of that certain Agreement dated April 1, 1991, by and between Maralex's predecessor in interest, LFC Gathering System Company, and Harold C. Dougherty, John V. Dougherty and --VY Ranch (hereinafter called "Dougherty et al"), recorded in Book 822, Page 4 of the Garfield County records; and, WHEREAS, Colorado Timber is desirous of using the ROW to access the Dale Albertson property located in Section 7 of Township 7 South, Range 100 West, Garfield County, Colorado, for the purpose of harvesting timber; and, WHEREAS, Maralex is agreeable to sharing the ROW under certain terms and conditions described below. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to the following terms and conditions upon which the ROW shall be shared: 1. Maralex does hereby grant to Colorado Timber, its successors and assigns, permission to fully use and enjoy the existing ROW roadways for the purpose .of harvesting, removing, hauling and transporting timber from the Lands; to have and to hold the said ROW unto the said Colorado Timber, its successors and assigns, for a period of one (1) year from the date hereof, but only for so long as the same is used for the purposes herein granted. 2. In consideration for the right of access through Section 8, T7S- R100W, Colorado Timber shall pay to Maralex the sum of One Thousand Five Hundred and No/100 Dollars ($1,500.00) to be paid upon execution and delivery of this Agreement by Colorado Timber. 3. The terms of this Agreement are expressly made subject to receipt by Maralex of written approval of such from Dougherty et al. 4. Colorado Timber shall comply with the following additional terms and conditions: a) Maralex shall furnish Colorado Timber with the combination to the locks on the gates and Colorado Timber will not change the locks or lock on any of the gates nor affix additional locks of any kind. There will only be w 4/ ay one (1) lock on each gate. Colorado Timber's employees and agents shall be authorized to have and know such combinations or to possess a key to such locks; however, use thereof shall be limited solely to the operations of Colorado Timber; b) Colorado Timber's use of the ROW shall be -limited to existing roadways. Colorado Timber shall not enter upon 'the surface estate owned by Dougherty et al (the "Surface Estate") except as may be required in the day-to-day operations of the terms of this Agreement; c) Colorado Timber shall not allow any unauthorized personnel to use the ROW, in particular being mindful that friends, family and acquaintances of Colorado Timber's employees are not authorized personnel. Salesmen, sightseers, and other persons not working for Colorado Timber or its agents are not authorized personnel; d) Colorado Timber's employees, subcontractors and/or agents shall: i) not consume any alcoholic beverages of any kind on the ROW or the Surface Estate of the Lands; ii) not permit any litter to accumulate or remain on the roadways or on the Surface Estate; iii) not hunt for wild game of any type or chase wild game with dogs on the Surface Estate; iv) not fish on the Surface Estate; and v) not carry any firearms of any kind, except as may be reasonably required to provide security for their equipment and facilities on the ROW or Surface Estate. 5. In conjunction with its operations, Colorado Timber shall: a) Immediately repair damage to fences, gates or cattle guards caused by its employees, agents or other persons under its supervision and control; b) Compensate Douigherty et al for injury or death to any livestock caused by its employees and/or agents or other persons under its supervision and control; and c) Comply fully with the terms of any rehabilitation plans now in existence or imposed by any governmental entity which has jurisdiction over the Surface Estate. 6. Mara lex shall not interfere with or obstruct the operations of Colorado Timber in any manner, nor shall it allow any agents, Rol personnel or other persons under its supervision and control to interfere with or otherwise obstruct Colorado Timber's operations under this Agreement. Colorado Timber shall not interfere with or obstruct the operations of Maralex in any manner, nor shall it allow any agents, personnel or other persons under its supervision and control to interfere with or otherwise obstruct Maralex's operations under this Agreement. 7. In the event of default by Colorado Timber as to any of the terms and conditions of this Agreement, Maralex shall notify Colorado Timber of such default and Colorado Timber shall have thirty (30) days after receipt of such notice of default within which to cure such default. In the event such default is not of a nature which can be cured within thirty (30) days, Colorado Timber shall promptly commence to cure such default and shall proceed promptly and diligently to cure such default, even though such curative work may extend beyond such thirty (30) day period. In the event that Colorado Timber does not cute a default within the thirty (30) days set forth or, as to a default which cannot be cured within such thirty (30) days, does not proceed promptly and diligently, then Maralex shall have the right to terminate this Agreement upon thirty (30) days notice. 8. Any and all damages, loss, injuries, deaths and defaults under this Agreement shall be cured to the satisfaction of Maralex and Dougherty et al. Failure to do so shall constitute grounds for termination of this Agreement upon thirty (30) days notice. Colorado Timber shall indemnify and hold Maralex harmless from and against any and all claims, losses, demands, and liabilities arising our of Colorado Timber's operations and conduct on the ROW and Surface Estate. 9. Notices hereunder shall be in writing and delivered in person or by United States mail, courier service, telegram, telex, telecopier or any other form of facsimile, and addressed to such parties at the addresses listed in this Agreement. 10. Colorado Timber, its successors and assigns, shall have the right to terminate this Agreement uipon thirty (30) days written notice to Maralex. 11. The parties acknowledge that this instrument constitutes the entire agreement between them, and that neither party has made representations, warranties or agreements other than as set forth herein. 12. This Agreement may be executed in counterpart, each of which when so executed shall be an original, and both of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. STATE OF COLORADO COUNTY OF 1)0�]VEti ) SS MARALEX RESOURCES, INC. . M. 'Hare, President .THE COLORADO TIMBER AND LAND COMPANY, RLLP The foregoing instrument was acknowledged before me this ads day of .J u/i , 1997, by A. M. O'Hare, as President of Maralex Resources, Inc., a Colorado corporation. Witness my hand and official sea S / My Commission Expires: l0_ 7-99 STATE OF COLORADO SS COUNTY OF Cfj.eF, za Notary Public The foregoing instrument was acknowledged before me this j day of RuGu1T , 1997, by ke,a r oQeaTs as r,Uetelc. PAArNet oCD2-aoe�eo TCAtEn,4 ,avo LAt,vo Co.11441),, +PL.LP Witness my hand and official seal. My Commission Expires: 7. ec.„/ SEAr. Notar, Public