HomeMy WebLinkAbout1.0 ApplicationGarfield County Community Development Department 108 8th Street, Suite 401 Glenwood Springs, CO 81601 (,s7ol s4s-82L2 www.garfield-countv.com E Administrative Review Development in 100-Year Floodplaintr tr Limited lmpact Review tl Development in 100-Year Floodplain Variance tr Major lmpact Review tr Code Text Amendment E Amendments to an Approved LUCP [] un nvrn n sup tr Rezoning f] zone Districtf] PUD E PUD Amendment tr Minor Temporary Housing Facility E] Administrative lnterpretation tr Vacation of a County Road/Public ROW El Appeal of Administrative lnterpretation tr Location and Extent Review Areas and Activities of State lnteresttr Comprehensive Plan Amendmen!tr Accommodation Pursuant to Fair Housing Acttr tr Pipeline Development VarianceD tr Time Extension (also check type of original application) 970Phone:31 95305 89119state: NV Zip code Mailing Address: 2235 E. Flamingo Rd. Ste # 152 City:Las Vegas E-mail ghrshaef@gmail.com Owner/Applicant Name: Harold B. Schaeffer Name: Brian Gallagher (Nexo Merchant Plant 1, LLC) phone:3520417 81650state: co Zip code: E-ma ¡¡. Brian @nexoequity.com 617 City:Rifle Mailing Address 995 CR 322 Representative (Authorization Required) 121 40Property Size (acres) 00 084 Zone District. T7S R93W Legal Description See attached Physical/Street Address:995 CR 322 Project Name: Nexo Merchant Plant 1 Assessor's Parcel Number: 2403 Ll59; Constructionandoperationofaproducedwaterrecoverytreatmentsiteandfac¡lity Construction and operation of a produced water recovery treatment s¡te and facility Existing Proposed Use (From Use Table 3-403): Solid Waste Facility Description of Project: Submission Requirements E the Applicant requesting a Waiver of Submission Requirements per Section 4-202. List Section Section Section Section Waiver of Standards EI fhe Applicant is requesting a Waiver of Standards per Section 4-118, List Section Section Section: Section: it:ì i ì| i,t ' , , ,.'ft:.i \i/\'lii \'i\,i,l 'r,,. I have read the statements above and have provided the required attached information which is correct and accurate my knowledge. 5t21t1B of Pro Date FireNumber,U{? k Þøe Vffi,wFee Paid: S Dlvrst0ñ¡ 1.GENERI\T FORMS Pursuant to C.R,S. å38-3G17e the underuígned executÊi this Staternent af Authority on behalf of NE bv NE ¿ limite.d liability limited partnerphip {corporation, limited liability company, general partnership, registered limÍted liability partner¡hip, registered limited liabilíty limited partnership, limited partnenhip assoc¡ation, government ðgency, trust or other), an entity other than an individual, capable of holding title ta real property tthe "Entity"). and states as follows: The name of the €.ntig is NE by NE and i: formed under the larvs of Colora4o The mailing address forthe Entitt, is 5957 Count Road 319 Rifle, CO 81650 The name andlor po:itian of the person authori¿ed to execute ínstruments conveying encurnbering, r:r otherwise affiecting title to real property on behalf of the Entity is Harold B.President The limítatíons upan the authority of the person named above or holding the posilon described above ts bind the Entity are ar follavr¡¡ {if no límitations, insert "None")None tfther matters concerning the manner in which the Entity deals with ðny interÈst in real property are {Íf no sther matter, leave this section blank): EXEcUïEDthi n 3VflOurof Mav .20-l!-. Signature: Name (printÊd) Title {if any} STATE OT lss. COUNTY Of of ?a//The by befarc me this on behalf of Witness my hand and official real. , n My commissio n u*pirrufutJ ( f ifu/ i( *.ifrnr/ grLY,':å";)Y ISEAL] 2 PATRICIA L JENSEN l{otary Public Stats of Colorado 2019 Notary Commiss D 201 2',|540221 ion Jun E GENERAT TORMSDtvtsloN 1. ÞEcnoil 14r.srArFUEtllr oFÁU,rtl9&rr. Pursuant to C.R.S. 938-30-172,the undersígned executes thís statement of Authority on behalf of NEXO Mercfiant Plant I a limited l¡ability oomDanY (corporation, limited líabílíty company, general Pa rtnership, registered límited liabiliff partnership, registered limited liabiliry límited partnership, limited partnership association, government agency, trust or other), an entity other than an individual, capable of holdíng títle to real property (the "Entity''), and states as follows: The name of the Entíty ís NEXO Merdrant Plant I and ís formed underthe laws of Delaware The mailing address for the Entity ¡5 -1-389 Cenler Drive; Park City' UT 84098 The name andlor position of the person authorízed to execute instruments conveying encumbering, or othenryíse affecting title to real property on behalf of the Entity ís Bdan Gallagher,Manager The limitatíons upon the authority of the person named above or holdingthe posítion described above to bind the Entity are as follows (if no limitations, insert "None"):Brlan It¡iamg€r for NÞ(O M€rchânt Plent 1, LLC ls auüþr¡zêd b måke bir¡dirìg decísloos ln the normal course d busln€ss Þlated b tñe coristn¡cüon and operatlon of the NÐ(O Phnt I LLC no other matter, leave thís sect¡on blank): f EXECUTED this day of 20 te 5ígnature: Name (prínted), Andrew Sloop Títle (¡f any):Parhe¡ STATE OF )ss. COUNTY OF instrument acknowledged before me this 22 day of 2aÌ on behalf of lnddlng tñe clnnge of land use br the þased prop€rty upon which thê plar* ls located. Artydêclsbn regardlng lh6 fnancial disposidon d such assets and arry endmbrance thercof must b€ duly åuthorlzed by Joshrn Embree, Opsrstlng Partîlr, or Andrew Sloop, Managlng Partner. Other matters concerning the manner in which the Entity dealf with any interest in real property are (if The bv a Witness my hand and officíalseal. My commíssíon expires:4, /, rt*., Ð(Date) (rrtotaryáubtiC) Public - State ol Utah mm. No. 690870 My Commission ExPires on EeP 1, 2020 otary Co RETT MICHAEL CROFT I Garfield County PRE.APPLICATION CONFERENCE SUMMARYCommunity Development Department lOB 8th Street, Suite 401 Glenwood Springs, CO 8X601 19701945-8,2L2 wumr.{ârf ield-countv.com DATE: PROJECT: PROPERTY OWNER: REPRESENTATIVE: PARCEL NUMBER: LOCATION: ZONING: TYPE OF APPIICATION: May 18,2018 Produced Water Recovery Treatment Site and Facility NE by NE, LLP Brian Gallagher 2409-t2l-oo-484 5957 County Road 319, Rifle CO,81650 Rural Minor Amendment to an Approved Land Use Change Permit (AdmÍn) ¡. GENERAL DESCRIPTION The Applicant is proposing to amend a Land Use Change Permit for a Produced Water Recovery Treatment Site and Facility that was issued by the Garfield County Board of Commissioners (Reception No. 81"4583)' The amendment request is described by the applicant as follows: Nexo Merchant plant 7, LLC would tike to enclose the cuÍrent "pltio" ãreo meosuring 26' 7A" x 36'' The basis of the facitity will remain the some however o more robust process troin will be implemented which requires odditìonol indoor space for process equipment' The current Land Use Change Permit includes an associated site plan that does not show the patio area enclosed. Staff has determined that this change requires a Minor Amendment application. il. REGULATORY PROVISIONS ApPIICANT lS REqUIRED TO ADDRESS Section 4-106 deleilrlines the process for an amendment to an approved Land Use Change permit. III. REVIEW PROCESS To process a request for an Amendment to an Approved Land Use Change Permit, the applicant shall schedule a pre-application conference. Within L0 days of the conference and after receiving allnecessary information, the Director shall make one of the following determinations: e. Minor Moclification Page 1 of3 b. Substantlal Modification. c. Determination by the BOCC IV. DETERMINATION tn reviewing the information submitted (attached), the Director has determined that the Review Criteria (section 4-106.C) for determining this proposed amendment to be a Minor Modification, has been met, as follows: 1. Comply with all requirements of this Code; The Amendment continues to meet all requirements of the Code. 2, Do not conflict with the Comprehensive Plan; The Amendment does not conflict w¡th the County's adopted Comprehensive Plan. 3. Do not change the character ofthe development; The Amendment does not change the charecter of the development. 4. Do not alter the basic relationship of the development to adjacent property; The Amendment does not change the basic relationship of the development to adjacent properties. 5. Do not change the uses Permitted;' The Amendment does not change the uses currently permitted. 6. Do not require amendment or abandonment of ãny easements or rights-of-way; The Amendment does not require abandonment of any easements or rights of way. 7. Do not increase the density; The Arnendment does not increase the density of the project. 8. Do not increase the zone district dimensions to an amount exceeding the maximum dimension in the applicable zone district in Table 3-201; and The Amendment does not increase the zone district dimensions to an amount exceeding the maximum dimensions in the RuralZone District. 9. Do not decrease the amount of the following to an amount below the minimum required in the applicable zone district: The Amendment does not decrease the amount of any of the following to an amount below the minímum required in the Rural Zone district. a. Amount of dedicated OPen SPace; b. The size of or change in the locations, lighting, or orientation of originally approved signs; c. Any zone district dÎmensions in Table 3-201. V APPLICATION REV¡EW A. Reviewed by: B. Public Hearing(s): c. Referral Agencies Staff for technical completeness and compliance with standards None None VI. SUBMITTATREQUIREMENTS The application for an Amendment to an Approved Land Use Change Permit shall include all of the material consistent with Table 4-2O!, as well as any other information deemed necessary by the Dírector. Submittal requirements include the following for this Minor Modlflcätlon: Page2 of3 A.General Application Material (4-203'B), lncluding a. Application Form b. Letter of Authorization, for any consultant acting on behalf of the owners and/or Ieaseholder c. Stãtement of Authority as the property is owned by a company d. Deed for the subject parcel and lease agreement if necessary e. Legal DescríPtion of Property f. Fees and Payment agreement form Copy of previously approved Land Use Change Permit and amendments Description of the proposed change and applicant response to Section 4-106 (C) Updated Site Plan VI. APPTICATION REVIEW FEES This application will be subject to the following fees and deposit requirements planning Review Fees: S 300 (per application) Amendment to a Land Use Change Permit Plus any addítional Staff time charged at staff hourly rate of 540'50 Referrat Agency Fees; 5 TBD (includes consulting engineer fees billed at an hourly rate) CountySurveyor: S N/A Recordation: 5 N/A TotalDeposit $3oo Disclaimer The foregoing summary is advisory in nature only and is not binding on the County' The summary is based on current zoning, which is subject to change in the future, and upon factual representations that may or may not be accurate. This summary does not create a legal or vested right. This summary is good for 6 months from the date of signature. Pre-aoollcatlon Summarv Prepared bvi av)1 ?O1R B. c. D. David Pesnichak, AICP Senior Planner Date Page 3 of3 I lll lT¡¡ lll,lllï!,tt I 1{'[ lffi ltl { ¡$l fül'l+{¡ ¡[ ü, lil' ù ] ll I F1ìqidå'åä¡*-'J,#.1ã',"*"p!.1àr36'BB*,,,LDcouNTyco LAND USE GHANGE PERMIT for MIPA 6434 FORA SOLD TFASTE F,4,CttITv (PRODACED WATER RECOVERY OPEkATTONS) ONA 40 ACRE PARCEL Ot LAND OWNEN BY NE BY NE LLLP. LOCATED IN THE NE Y¿ NE T¿ OF SECTION 12, TOWNSHIP 7 SOTTTH, RANGE 93 WEST OF TNE 6TH PM, GARFIELD COUNTY PARCEL # 2403 -121 -00-084 Further described in Exhibits C and D In accordærce .with and pursuant to the provisions of the Garfield County Unified Land Use Resolution of 2008, as amended, the Gæfield County Comprehensive Plan of 2000' the Colorado Revised Starures 30-20-I02through 30-20-104 and ResolutionNo. 2010 - 90 of ttre Board of County Cornmissioners of Garfield County, State of ColoradÓ, hereby authorizes, by certificate of Designation, the following activity: CONSTRUC¿IOIV ¿,T¡N OPERATION OF A PROÐUCEÐ WATERRECÙWRYTREATMENTSITEANDFACILITY This Land Use Change Permit will supersede and replace in full a previously recorded document, reception# I l2463,and is issued subjectto the conditions setforth inExhibit A and B and shall be valid only during compliance with such conditions and olher lFPlicable frorrisioo, of the Unified Land Uså Resolution of 2008, as amended, Buiiding Code, and ãth*r r"golations of the Board of County Commissioners of Ga¡field County, Colorado' BIJILDING DEPARTMENT, ûdes{rn&/l^u'*- John Boatd County sÞÂr, c4^- County File Number MIPA 64,34 Ilill LÍillfil lrftl ll{'ù ¡lllI îålãå'8Bn.t¡uo couNTY co Exhibit A I . That all representations made by the Applicant in the application, and at dre publio hearing beforo . the BoardbfCounty Commissioners, shall be conditions of opprovaf unless specificallyallercd by the Board.of County Commissione¡s Z. That the operation of the facility be done in accordance with all applicable Federal, State, artd looal regulations goveming the oporation of this type of facility 3. The froility shall be operated so that the grOurid vibration inherently and reourrently generated is . not peroeptible, withoilt instruments, at any point of any boundary line of the property on which the use is located' 4. Site operations shall not omit heat, glaro, radíation, dust or fi¡mes which subsøntially interfere ' with tÎre existing use of adjoining property or which constih¡tes a public nuisance or hazard. S. All equiprnent and shuctures associated with this permit shall be painted with non'rcflectíve paint in neutal colors to roduce glare and mitígate any visual impacts. 6. The volume ofsound generated shall comply with the standa¡ds set forth in the Colorado Revised Stetutes. 7. All lightíng associated with the pfoperty shall be directçd inward and downward towards the interior of the ProPerlY 8. Tho applicant shall obtain an approved tsDs permit and install the petmitted ISDS prior to commencing operations. Any Revetse Osmosis treahnent system used to treat well water for human conr-u*ptior, tü"U mäft"ge the RO reject water to the Evapordtivo Ponds. g. The applicant sh¿ll obtain approved building, gading, eleohioal and other building related permiß pr¡or io commencing conshuction. The appliaant shall follow the requirements of the 2009 International Building Code (nC). 10, Because potable water demands of thç proposed project are tistimated to not oxoeed 140 gallons per week, the applicant shall be able to utilize bottled watcr as â source of supply for all potable water uses for ìúe life of the project. Applioant shall provide the County with a potable water delivery contr¿ct domonstrating delivery to the project site of water in an amount suffisient to *ult uii*utud noeds prior to issuance of a Land Use Change Permit. I l. All of Applicant's consttuction and operational activities shall be conduoted in compliance with all terms and conditions of all air quality permib and air pollution emisËion notices (APE}f) required by the Colorado Depaúment of Public Health and Environment. Applicant shall provide tfrá Ca"¡4¿ County Building arrd Planning Department with copies of tho state's General Constructiòn Air permit prior to iqsuance of a BuildÍng Permit' County File Number MIPA 6434 lllü l#il+llfil llil lltü lll,ù I ll I Albsrioo 'ø.øø GÊRFIELD COUNTY CO 12. All of Applicantjs construction activities shall be conducted in compliancc with all terms and conditions of any storm water pennit required by the Colorado Department of Public Health and Environmenl (CDplIE). Applicant shall provide the Garlield County guilding ard Plan4ing Deparfinent *ìth u *py of such storm water:permit prior to issuance of a Land Use Change Permit by Garfield CountY. 13. The applicant shall nofiff thc Board of County Commissioneß and the Garfield County iltd.-*y tr¿u*gø ifwaiet is detec3çd by the leak deteotion system' 14. prior to iséuanoe of a Land Use Change Permit, the applicant shall obtain the required building p"*i6 for lnshllation of an eight foot wildlife fence a¡ound the perimetet of the evaporative ponds, and tlre fence shall be installcd prior to cornmenc¡ng operåtions' 15, The applicant shall install netting over the evaporative ponds to proJect Migratory birds if the pr"rrn* ofoil rcsidue or hydrocarbons ip detectcd in the €vapotativ€ ponds. Ifsil residue or irydrocarbons are dctectpd in evaporative ponds this will be rsported to the appropriate state ug"noy and the Garfield County Department of Public Health' : 16. The applicant shall use Natural Resources Conservation Service re-vegetation mix noted in the application materials' 17. The foltowing recolnmendations and requests of the Garfield County Rpad and Bridge Deprtment shnll hecome conditions of approval: A. The applicant shall obøin a driveway aoniess penrilt if one ltas not been issued for this locatiån with conditions specifio to the driveway aççess location, B. A stop sign shall be required at the entrance to the County Road. The sìgn and installation shall be as required in the.MUTCD (Manual on Unifo'rm Traffic Conhol Devices). C. ,l'hc applicant may be required in the future to conhibute to a road maintenance plan whichcould include dust control, a new gravel surface, and asphalt repair as needed- D- Äny utilities installed within the County Rights-oÊWays shall require a utility pennit issued by Garfïeld County Road and Bridge' E. All vehicles hauling equipment and materiàls for this project, inoluding items to be stored shall abide ty Carnela County's oversize/overweight system. All vehicles requiring oversize/overweight permits shall appty for thcm at Carficld County Road and Bridge Department' lg. The applioant shall finalize the Fire Emergency Response Plan with the Rifle Fire Protection Distriòf prior to commencing site operatioirs. A letterfrom the Fire District acknowledging the completion of their requiremènts shall bc submitted to the Garfield County Building and Planning Departrnent prior to cornmencin¡i operations' 19. The applica¡t shall submit a copy oftheir f-rnal National Pollutant Discharge Elimination System C¡¡pneSl pennit to the Garfielå County Builcling and Planning Department for surface discharge of heated water prior to colnmencing operations' County File Number MIPA 6434 ,tHlH[Htl$illl'ù llllI ¡E8nr¡e.o couNrY co 20. Mowing for weed oontrol shall be discouraged on noxious weeds afterthe plant hæ produced a flower. 21. Are-vegetationseourityqf$2,500/acresshallbeinplaceprìortollrestartofconshuction' The tot¿l seJurity is (7 acreé x $2,500/acrc) $17,500. The security shall be held by Garfield County ,ritit vegetaiion iras been suocessfully reestablished according to the Reclamation stsndards in the Garfielà'Coung Weed Managr*uniPluo. It ís the responsibility ofthe applioantlo contaotthe County, upon successful re-vigetåtion establishment, to request an inspection for bond rglease consideration 22. Anystaw or hay bales used as check dams shall bè,certified as weed-free by the Colorado Departnent of Agricu lture. 23, Any teohnical conditions of approval made bythe CDPI-IE in its final report shall.be incorporated as iequirements in the Certificate of Desiguation' 24. GarfrSld County retains the authority to revise any condition ofapproval for an approved Land- U; Ch*ge pe.rn¡t if CDPHE requirementlfor the Certificate of Designation cause"Substantial Change" tti the terms of the Major Impact Review and the Land Use Change Permit; 25. Thet and Use Cþange permit shall not be issued until the Certificale ofDesignation is issued by Garfielcl'CountY. 26. prior to a period of 12 months from issuanae ofthe Land use changc Pcrmit (the "Initial Period") the applicant shåll have the right to utilize hauled water as the soutce of supply for all nou-potatle water demands ofthe project.*Applica¡t shall provide the County with.a copy of a cgnlryt Jvith a water haüler prior to tit" iso*". oittte Land use Change Permit. Prior 1o thq end. of the Init¡al period, appliåant shall replace hauled water as the souroe of suppfy for non-potable uses wilh . either: (a) water treate.d through applicant's on-site heatment facilþ; or (b) water produced from a well to be drilled on th" r,rUjıt ptoperly. If applicant elects óption (a), thén prior to the end of the Initial periocl applicant shali obtãin and provide Garfield County with an approved well pennit for the source ofsupply ofthe water to be used for non-potable purposes and.approval from the óiråro,fo n"partrne"t of public Health and Environment¿nd from the colorado Division of Water Resources thât the well permit covers applicant's use. If applicant_elects option (b), then prior to the end of thE Initiatperiod applicant súáll pbtuit and provide Garfield Courrty with an approved *rtt p.rmit. Applicant shaliitrereafter comply with all tcrms and conditions imposed upon the well permit for tÈe well whioh serves as the source of suppty for applicant's non-potable water systern. 2i. Theåverage monthly trip rate ofthis project will not çxçeed 50 trips per day, County File Number MIPA 6434 lfll ffil,Ël,l¡lrllrtHll,ù ll ll I Êlb¡rloo:0.6O €ñRFIELD GOUNW co Exhibit B CDPIIEApproval tetter Octobet 27,20L0 ÇountY File Number MIPA 6434 l{fi¡lllû|ffi hltl l¡lltLl'¡ tlllthlllt'ù ll lll 'Ësrrroo cou'Tv .o 5TIffE OF Elll Rittor,. Jr., ÊovEnor üñhaË Rúdolph, E¡;ecutvç tÍrectór oøicar"¡ to øriccunggnd lrnprovlng lhg hedlh and envlronmBnt sl thê poopl€ of co¡orðdo ' ¡ßm chârry CrBsk Dr. 9. . LaboÉiory Servic€€ DtvlBion Dcrivsr, Go-lo€do 8æ4ei 530 qf 00 towry. Blvdr --^^ ^-prrãnã-i¿ñãieùe¿ooo Denvor' co-lgqdbgm&Þ6s26 roo une (dm).0st-z7oo (303) BS2-30s0 tffit€al ln'Glsridale, colqrEdo hüpúlùww.tdPhå,slateico.uÞ Ocobsr 27,2010 Gaffielil County Boatd of Commissioners 1,08 EÍghth St¡cEt Glenriood $prings, CO 81601 Re: ['inal,{gency Acfion: Recommendation for Approval with cOnditions CE¡tif icate of Desi gpation -Application $h¡eile,r R¡sc.h / GreenBack koducetl lVatçr Reoovery¡ LLC Garfi eld CountY; Color.ado Dear Honorable Commissioneis : Ihe Colbrado Doparfrent of Puhlis Health ft Environment, Hazadous lvt4edals a$ Waste i,fr""gr*t Diviiion (the "Division) received a referral conespondcncç &on Gaúpld county ã" nlä"n 24,2010. T'te correspcrirdence iricluded a lstt€r from GarfiEld.Çquûty Bulliling and planning Dqrartmcat requesting-the Division's review of the *ubjï! C.qrtifcaqorDesignation (CD) aiolicftion and ¿^document tÍtlel "Certificate of Designationr Eugine€ring De.sien ând bñ.däÞhq Green3ack P¡oilurnd ìUats! Reoolery' LLC, Garfield County, Colorado" (Plan) p.rãaradty cGns, hc. (CGR$) datedMarch20l0- The" Divigion conduotpd a Cpmpleteness Revier¡s of the Piirn in- accordance with proceduies outlined in Søte i6oe, qRS 30-20-103 ct seq., md co.rnesponding þgulaíqns Fer_tainiqg to Sãi¡ri W*æ.Siær*a Facititie¡, 6 CCR t00TA, Pa¡t t (Solid WsstE Rqgulatio.ns). In a lctter ı"1ø nøizA ZblO, the Divisronnatiñcd Grc.enBack Ptpduocd 'Ut¡ater, LLC (OrcerBack) th¿t the Planwas:cömpl€t€- l: ïtie.Division co¡dripkd aeom¡irê,hensive tca,þpical reVicw of&'e;llan¡uryuar-ü.le -th¡pmcedges ;1i¡íJír"-öUi" -i":.d *a ffr 3.n¿ wastinegulations, ite Div¡sion'si"€liminarv technical ;;dtr:;l*g""*i for additior¡¿¡l informatisn were pmvided to orçenBryk-ln a lelt+.d3pdj*¿ã ZO¡O, in r.*p"nru to the Divipion's J¡ne 22la1tq' CG_RS su$$S. a revised Flan ä"äfú¡$t010,;ti¡;h was received¡y mq Divilo¡ on åugust 18, 2010. Since the .".yttd plar waireceiv.e{, the Dftüsion an¿ CAng bnvs informally conmunicaled nurqPg t'lqæ' irrãorñ*¿r via teløhone and email, concernirrg aitdÍtional i¡form¡tiort or clãrifioations ilääf", ti'¿ ç"¡rrd Ëi*. Tlris infsnnelion was trassmitted elscmnieally to thc Drvision by llllÍfrlll,h'lfïlllllilùr llfildll fftl flfÌl llÌJlìl ltl'ù ll lf IRooeÞtloh*i E1{583 AZl1412ø12 @1 :39:¡ß3 P¡Î .têän Albêriao7 ol 11 Rac Fea¡l¡Ø,ØØ Doc Faêrø.øø GARFIELO COUNTY ç0 cGRs onAu.gust 26a¡:d 3Q septembel I and 14, aud oçfobçr1l'12,13, 14, 15, 19 and21t 2010. The Division initiated a 30-day witten publio commefit period by publishine a P.ublic notiçe in the n¡fle Citizen Telegram newspaper on August 19r'2010. Thc Division ilid not receívê any "o.m"ott tturing that'period, whicli concluded on September 20,201A- On October 25,2Ïl0the Divisrçn rEceivcd the firal revision to the Plan" and hâs reviewed it for technical merit, It is tbe detc,iminstion of the Division tlrat the proposed facílity can comply witli technical, environnental, and public health standa¡ds of the Solid Waste Regulations if the facility is constructe¡I, monitored and opereted as detailed in'the final Plar¡, and with the conditions as stated in this letter. Bæed on this asSessmen! the Division reoommendsn as final agcncy actibn, that this facility mly be approvgd ty Cq4u-1{ Corurty, with the condítions set forttr herein and with any additional local restrictions Garfield County may ctrcise to impose. The Division'S approval of the Plan hfls the following conditions that shall be incorporated into the CD whenand if issued by tarfield County: t. Thc Financial Assuance Plan, including independent thifd party ór referenced cost estimaten sh¿ll be submitted ts the Division for review and aBproval. In addition, the finanoial assuranoe mechauism must be in-place and approved by the Division prior to acseptaooe of material at the siîe. Please nóte that pursuant tô the rÕqui¡em€ûts of Secrion t.t,g of the Solid W¿ste Regulations, the post-olosruç cost estimate müst be adjusted annually to account for inflaTion o¡ deflation by using the implicit p¡ice deflator for the gross domestic produot, A.dditionally, GreenBack must rèplace the original cost estimate every five (5) years uuleçs othenryise required by the Division. Botti the annual a{iustnent and the S-year update cost estimates must be submitted to the Division for review and approval 2. Consistent with Section 1.5 of the Solid rùr'ærc Regulationo, thç Division has granted Greon$ack a waive¡ for groundwater monitoring requirements. Part of the tecbnical justification for granting the waiver from grouudwater msnitoring included a site.specific investigation and analysis of thc existing groundwater c¿nditions at the,site th¡ough th.e drifiing aacl const.rucJion of three (3) wçlls within the pro¡osed CD boundary. Although onp well was installed, i1 was deærmined that thc location of tho other two wells would potentially interfere with ihe facili constnrotion and possibly become damaged during construction, As committed to in an enail to the Divisiôn dated 4ugust.26,2010, ihese two wells sh¿ll be installed as soon as logistically possible after potcntial damage to the wells ûom otl,re¡ site aptivities,is no longct a Êoncem, al f.eåst prior to facility operation. If , groundwater is found in either of the,two wells that will be ínstalled, the Division wlll evaluate the'appropriateness of the groundwater monítor¡ng waiver' 3. If liquid is found in the irnpoundment sumps, an analysis will be conducted to deterrnine the liquid's origin (e.g.; E&P waste orprecipitation). This determination wïll be made by " evaluating the liquid"s tot¿l dissolved solids ODS) or speciftc oonductaiice (measured in. micro Siemens per centimeteÐ and comparing that value to the properties of the waste nratorial. fhe th¡eshold values for determining whçther tlie liquid in rhe sump is E&P z tlil ftr¡ l$,ltltll llllÍlJ¡tÍ ll+l l$Llt{l llil l['l' lll' ù ll I I I Raocotlon*: 814383 Y {l 4 {?' 17"^ I ¿!?åá?rã''.i "Ë!"f åT ã6 t8Ê*r r.LD c 'uNr y co pqste or precipitation shall be based on sampling and analy¡il -of tYpt_cd maÉrial accipterl f *eiiæ. GreørBirc! sh¡ll p(orids_this a¡alysis to ihe DivÍgion after a suitable nt múr*,of sanrples h¿ve bcen anal¡zed atid prolse a ihe'shotd value based irn'this analysis us to wheth"r E&P waste or precipitation is found in the s¡mp. As required by 30-20-10a(3)(a) and (3Xb), Garfield.Çorurty ís-obli€ated to notify its citizens and conô¡ø a pqblic hçarjng regarding the pioposed solid was.te faeility. Please forwsrd a copy of the'County's final resolution concsmiug the CD issuance or denial to the Division. ¡r closin& the Division is authorized to bili fôr its review of technical submittals at $125 þer tto*, poıiant ro Section 1.7 of the Solid Waste Regulations 6 CCR 1007A. For review ofthe CÐ application iacluditrg rhe gnrpleæness review, tcchnical rwiew, attending meetings, tetep'hone cmvcrsations, and email ccriespondonce; the fee ceiling is'S35'000. Aninvoice for the Diüsion's technical review of the above referenced dooument will bs sent ûo G¡es.n3ack under separate cover. Shoutd you have ztnY questions,or if you would like to have a meeting to discuss this letter' piease co¡tact Larry Bnrskin at 303-692-3384 flgny.þruekin@'itsÞ.ior9) ot Roger Doak at 303-69L?t437 (rue6doak@sBfe,caÆ). Since¡ely,h/ LawrenceJ. Bruskiq P.E. Professional Engi:reer Solió'ùfaste and Material Management Unit Hazardous Materials and'Waste trrfaúagcment Division gc: Roger Doak Permitting Crroup Unit Leader Solid Waste and lvfaterial Managcment Untt Hazardous Materials a¡id $faste Management Dívision DauPackard, GreenBack JobyAdams, CGRS Cqlb Carmoney, Gæfietd County Building and Planning Department OaryBeers, CDPI#/U/QCD Dana Po"dell, C DPIIE/I\PCD B ob Pqterson, CDPHFGJ/HMS/MD ûle: s'i¡lssísha/2.7 J hli|fril¡$'l|ñ¡ ll{,lll'ü ll ll t l8finrrg¡ cott¡rY co Exhibit C Legal lÞscriPfion The NE % of the NE % of Section 12, Township 7 South, Range 93 West ofthe 6ú Principal Meridiân,located in Garfield County, and State of Colorado, containing 40 acres mbre or less; as recgrded at the Garfrel.d Coirnty Clerk and Recorder ofËrce, Reception No- 790212 Togettrer with a non-exclusive right of access thereto.from-a public road svs¡ sxisf ing roads on lands ownedby Gtantor (Sheaffer, LTD') in Section 12' County File Number MIPA 6434 lllll DÍÊTilå?[å"Emr¡ELo cotnrY ct Exhibit D Site Plan Coirnty Fíle Number MIPA 6434 I nfi H¡l¡ffi { FtÍTlrl trffiüUî|fl 'ù lf ll Il-tt¡ûd: 3l¡Ë¡3e-alæ12 er:È:¡t ñ JÕ QtFtóir :r rr h F¡:tt.ð Doa F-,0.6 6fFlE"0 cqfiy c0GREENBACK PRODUCED WAÏERParcê|. Descrþti{ Frcel of bnd ¡dEd i1 rhe t{orttÉaetæmer d Sedion l¿fo,Élip 7 sonh. Range lxt s./ol, h rhe âñ Prlæ¡pE¡ Mridhn, ¡rrSa.fbld Canty, Coþrðdo sñd bekE â tqüon qf ûat tr¡û of b¡dd*ibÞd l. 8ootr 717. Fâée 814, GafÞtd C@rry Ëdds -dbeing nde pârtknladt d€dÞed ætolloG:coMtyEllclt{G ât üE ¡brahæEl øær of gld sdbn 12. wlw1þ Southæsl æñet óf æld S¿clbn 12 bâs Soú1 Oo'593?'EæL e dil€N ot 5258.6119 for € bsÈ oa b€arin¿s, wirh allb6alr€s @ntal¡ed iÉreùì relallve Mdq thênæ Sodh Û0'59'37'Eæl a db€Ê cl 139,57 fc9t, aþngùe Êd t¡ne of sld sætþn12 to üe POINTOF 8EG¡NN|¡16;th€æSoüh m"593Ì'€æt,adis @ of 610,44 fê€r. 6ñùrulné aþtrg skl EÍst l¡ne ot sldSdlor l-a thæ Selh 89'5825"1¡/Ël å d¡rÈnceof 785.0Clêec rÞæe Noâh 00'Sg'3 7'ì,Í6L a d*â¡ce of 610.48 leet1ìilæ Nonh 89"58?5' Ess1. å ¡tbtæ or 785.00 fæt ro a po¡nton thè E¿q llne al gd sedion 12, thê FoNf 0€ gÊGINM¡{G.Sãld ær¿d hÂ\ing an áræ ôf I L000 Âcr6, æ d6arÉed âr¡d pâilof 599 âøæ of p6r€l f2 4û3.12300{26.Zon€ Dislrict:gfgæSegls!ldlQsgg!ails:DlmeÉbß €'¡ g)'Typ¿: Stæl - Foá & B€m Ftme SFudreqgl TÆEig AcGS Sjle.jSìfty, Sandßþy Urd€rþnr By WbsalDh Fgmlion M6ts¡aL FræSubsúrlæ Water Nd EnwôtseúVesrlqlryg_coyc5(Sæd M'¡( FmhcminttPrcposed Waslêwater T|eatîìErÉ Svstern DescriDlion:qlsile Wastcwèbr TrætrÊll YE s€ptÞ Tarfi & Abdbdon Fleld"- ÀhÐ,Éiotr Floþ ShEll Cons-Bl Ol lr¡t.aü S'61fl Chammberslnsllèd whæ showÀ sysñ ÞeÞtb shãll Be Rsd whh Thelndivi¡lual Somge Dlsposl System iISDS) PemRÂpdiølbn"DÆ9dg!!9!-QlJyetêr.sCPplE. fbrâble lvaer ShaI 9€ PrP¡ed Vlo w#¡ Bdl6. ΀sÞd we (R*ce osmsk) shâll P¡wfde Non{or¿tae Wãt9rFd orEile DolGt¡c th (ToileL Fbnt wM¡. æIS¡qn Dstä¡16/ D6erip'liø:Sizé:4'x 25@RffiPffiUqÞMERÆ@RY,¿!ê.: t',\. -\-\\TRTlLIIt\LIIIIlil-.!\lt1I",)..\ )'.\":RrI'l?IkI*¡$á2i5gzıqËä3cfÉCl N=X) CAPITAL PARTNERS May L7,2OL8 Nexo Merchant Plant 1, LLC 995 CR 322 Rifle, CO 81650 To whom it may concern, Nexo Merchant plant 1, LLC would like to apply for an amendment to an approved Land Use Change permit identified as application number MIPA-05-10-6434 on parcel number 2403-L2L-00-084. Nexo Merchant plant 1, LLC would like to enclose the current "patio" area measuring26' 10" x 36'. The basis of the facility will remain the same however a more robust process train will be implemented which requires additional indoor space for process equipment' Review Criteria: 1-. Comply with all requirements of this Code; Yes, we meet all requirements of this code and the prior application 2. Do not conflict with the Comprehensive Plan; Maintaining the use as the previous applicant 3. Do not change the character ofthe development; N/A 4. Do not alter the basic relationship of the development propefty See above. Maintaining the same use. 5. Do not change the uses Permitted; No change to the existing Permit 6. Do not require amendment or abandonment of any easements or rights-of-way; Do not require an easement modification 7. Do not increase the densitY; N/A 8. Do not increase the zone district dimensìons to an amount exceeding the maximum dimension in the applicable zone district in Table 3-201; N/A N=>() C A P ITA L PA R T N E R S 9. Do not decrease the amount of the following to an amount below the minimum required in the applica ble zone district: a. Amount of dedicated OPen SPace; N/A b. The size of or change in the locations, lighting, or orientation of originally approved signs; and No Change c. Any zone d¡strict dimensions in Table 3-20L N/A Please see the documents included with this letter for a proposed site plan Best Regards, Brian Gallagher Project Engineeri ng M anager Nexo Capital Partners May L7,2Ol8 NE BY NE, LLP and Nexo Merchant Plant 1, LLC Rifle, Colorado To Whom lt May Concern: NE BY NE, LLLP, a Colorado limited liability partnersh¡p and owner of the real property in questíon, does hereby grant permissíon for Nexo Merchant Plant 1, LLC to apply for an amendmentto the approved land use change permit (MIPA-6434)on Parcel 24O3OLZL-OO-084 required to construct the enclosure and/or building located on the property currently leased by Nexo Merchant Plant 1., LLC in connection with their water treatment facility. A copy of the current Surface Use, Option and RÍght of First Refusal Agreement ("Lease") signed between NE BY NE, LLLP and Nexo Merchant Plant 1, LLC is available at your reguest should additional informatíon be required. Kínd Regards, NE BY NE, LLLP, a Colorado Limíted Liability Limited Partnership By: Harold B. Shaeffer, President of Humac Management, lnc' General Partner for NE BY NE LLLP 2235 E. Flamingo Rd., Ste #152 Las Vegas, NV 89L19 z cvR¡4FÈÉû¡€,**rtñË'¿áËñtdl&tudÉqd¡d*ññtS#&tôGeneral Notes:hEthffi¡rffi*Þ@úllb*bÞÉfuñtud6&ffid-kfrb'wdÙ@Ébé6û.odÉh-*hùdb@kheÈffidahdlEdñ*sE@ohd¡h¡Ú'ødúttudÙ.{dtdó-dbøHd'#bñÞdffi.tubffi¡tdq&ãebÉddtucÑdú*[dSÉDd#d*dd&Èb@6ffituffiflÉfúffid&ddúù.dËd4frbbh¡trftËd¡dt¡.ô-*-a¡edh,ùÞt-rd-ñE,'d*#b**rêñ-ÈatibÉd--ardtr¡¡drt.Ç--Þ4Éaa4ãrãJtrÞt¡{drtÞdÉ¡rFÉÈÈ*n¡sâÊéùâ-ñ:fH*¡g-rã*Fc¿ ¡r.éran-rÈæitifrst*hÉrd-¡Ë-&d-xút--..*6'æ*ÈMffidbdkSd!.qrdúr¡dúÞ@.Ñ.Éb@ffid¡üt.ú@É,dhd,Fr@Mrffidb.*ûþffidh&rú4r.@ñhffidËaÐ4qdtùbñÉ!*.É,¡¡'ø.Éi4ffiË@ffihdrrtuÉÞúñ@kb*d*re@r4@düEdkFbÉ6'Þùtu4bd&ffiffiÉúftryôffi{#Mh@Êdñh@dbdbffi{ryhÉdhÞry@Èòer¡¡ry.áÉ4cclfu0ù-ñFqffi,H6¡f upffidffiÊreÁeoú: È!9F¡Þd¡lr&¡r(úts-l-ffkËb*ñb--h-F-fr*t¡ùffidFó.ñf@dq¡.ùil@*kdú.ÉrtrffiÞdwbh&*db&ñ.É.dcffi*bdhrffildùhÞtudbúha'!¡!¡dtu*sæhd.r#IeBúBd¡.ñh$ı!¡Ajr;MÞÉhÈquaúbF@IÈùs&Ery.ÙtÐrqt: @6â !@dbtuhhr4Èkb'|r#dryæb:ãM6tub*sPartial Site PlanNexo Plant One lnflll/'T-\ ¡8114. NÊ t ¡1, 51¿ T?s. hßW\l-l rðb: Itg'l'.fr¡twsilFll@ tt@9@l.ùadt^æ iFEh#rtuh d¡tuffi,rcÙfiÞ¡t[dilb¡É1ffi&Ñù^#wr@tbñd&hMßceæwwddú.F¡deÊffiGornbined Floor=FIrO)!iÉ ob_itroırÈ L- LoË;:Ë{Ëfi'F ıEä:*seË ä,9JefrJohññJêfiJohma &ch'leclGl PC138 EThkd SLRtu, CO 816SArchltect!Stn¡clural:sþe K*lerRÍlê, CO ¡16SSheet lndexallhh,bb¡É..d¡ldhrtu¡l&&&¡*ffihd&brt:-';i-l:.1 l.¡*Hh,/¡frl. l1l ' Þl\rå J ¿liii tiii O ã voo ! Ðf I fc Í O t !n .lt oÊ !Ë!¡o, a¡,tt n- n ¿; o zÈ86 r{ d @ ãçGi9B B ä rà 49 s¿ É inËä ilexo Plant One lnflll NEl/4, NE l/4, Sl2, T7S, R93W Garfield Gounþr, Golorado BdE I -l : : i t! t!r.9 I I : I I I ,'l , I '( cl Dq,¡)ooC-ñôcË!€*iË-/ 'i-2ol:r-,¡tot¡oa6ñ-ù¿;-{,-€itiiiriltåi!'iå i-.,@liH-- a:,--o-o>l¡!¡gEot¡!ioIñIÞ-l¿;)fovtmt!l¡oIt¿\ggII¿;*€ËilËrEflååûJ{exo Plant One lnflllNEI/4, NE l/4, Sl2,17S, R93WGarfield Gounty, Golorado--o-o"-€ ÞÀ¡--.o-*€--o--^--oI.llilioãoE'GI:ìIåiii[åir"íiiWHffi$iltt¡lirriltlllI!.!tII¿;os'lt!¡q.to* '(9-.oNexo Plant One lnflllNEI/4, NE l/4, SlZ, T7S, R93WGarfield Gounty, GoloradoI-(€IIII-t- - -IGf,il¿;)rtÐ3E.ao9uN(í\!trtlçI{q)EÊÊíclt!oo¡J---llËilüåit---Io s'INEXO MERCHÀIfi PI¡N BI.¡GÀPPROVED :ORCONETRUC-IONiAit,t4,,,Io!lEQ A P ME¡I T A NC IIORS IIO T S HO'1,11A¡lD SMLL 8E Bv 014/l'lER /EutinERr'E.li=H-Ët:lF1I-W@[.øWæÈ..rñã.ûÈ*&wpE*úøñûWNþGñdMßâAÚMñAWbW@PtA¡'l - FotllPitEilf PAD uYoufMdtøþØætilF? 2. m G4- rAM( F&tûA n NrJti1-t!€t!tri+IIâ"%-*-O-*I I ..," r---rIIrl\lIt(}IT:llÌIôÞL@þ@MãØqıñ4&æ¡jæffi'ffiMÆEdæ.W6gffiWrAMffi$!&BruÆ@!ffi|w-tetwÉwfæwfeþiù4w@LME@**&@&Éñsfltffiwffiffi@tæ&&9Fæ¡:.rÃ&wæw&Ec@ñÆetuffi.#ffiñúkÆM*eaæffifltw@ùÉ*$wøúaeñwMta.4w--1ÉÉerffi*æ¡@&Éww*ÐlæffiãMÞÈMß@Ê@æflßËÐæE¡E.wgw&ffi¡dßarr;årÜ@ffiæææEÆcMßæñt**Æ8481þw*Éffie*ffiÐtrMßffiuxffi.æúæa&e4ffi*cREIInXCenCørælttøltsñèþÉtMtfr-wnûtfWNMæWs-&ñÆCfu&MEffiøæMÊÊßffiñ¿.Æfr&wùÉwuæMe4&%ùÉêtw6ñMdffi*Ê9,&þ*ffitæs¿æwtuffi*eËgææeñwÆffirÉ@*ÆEsGæw@6wú6îWffiæßÑMffiøflAAN&ÉFtñfrâw@úææÆ/dMGßr@ãtæaxffiæ@ffiffituÆeæffiþMÊÚMÚñf@&E*æZE*Mffi&æWN,%ññtÈtæãùþ@\:Jut'tu.N,-¡.fa\----sEcnoN/ñ--_rnE!ñÐøaæ8.&nsEclþilrñ¡u u.E' PAYMENT ARRANGEMNNI' RNLATED TO THB, SURF'ACE USE, OPTION AND RIGTIT OF'F'IRST REF'US.AL AGREEMENT (Restating and Replacing all Previously Executed Surfacc Usc Agreemcnts, as amended) THIS SIDE LETTER AGREEMENT (the "Agreement") effective on the lst day of January, 2A17, between NE BY NE, LLLP, a Colorado limited liability limited partnership (Grantor), whose addless is 5957 Cor-rnty Rd. 319, Rifle CO 81650, and NEXO Merchant Plant I, LLC, a Delaware limited liability company (Grantee), properly and legally registered to do business in Cololado, whose address is 1389 Center Drive, Slrite 120, Park City, UT 84098. RECITALS NEXO Merchant Plant I, LLC (Grantee) and NE BY NE, LLLP (Grantor), having entered into a Surface Use, Option and Riglrt of First Refusal Agteement ("Lease Agreement") to use the Grantor's Property as defined in tire Lease Agreement now agree to the following: 1. Grantee shall begin rnaking lease payments as defined and outlined in the Lease Agreement, 2. During the first year of the Lease Agreement (Janualy 2017 - December 2A17) the Grantor agrees to allow tire Grantee to inake rnonthly payments in lieu of annual payments, 3. All other terms, conditìons and obligations remain as stated in the Lease Agteement. AGREED and EXECUTED by the parties as of the date first above written, Grantor: NE B Jake Shaefler V€t 2235 E.Rd.,2+1-G g tl'L $Las Vegas, NV 89119 Grantee: NEXO Merchant Plant I, LLC J osH q+ l, TouuYI NEXO Plant I, LLC 1389 Center Drive Suite 120 Park City, UT 84098 'By ]By \5 SURTACE LISE, OPTION ANT} RIGHT OF FIRST REFTI,qAL AGREEMENT (Restating and Replacing all Previously ß¡ecuted Surlace Use Agreement$, as amenrled) THIS SURFACE USE. OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT (the "Agreernent") effective on the lst day of January, 2017, between NE BY NE, LLLP, a Colorado limited liability limited partnership (Glantor), whose address is 5957 County Rd, 319, Rifle CO 81650, and NEXO Merchant Plant I, LLC, a Delaware lirnitecl liabilify company (Crantee), properly and legally registered to do business in Colorado, whose address is 1389 Center Drive, Suite 120, Pafk Ciry, UT 84098. RECITALS NEXO Merchant Plant I, LLC (Grantee) and NE BY NE, LLLP (Grantor), hereby enter into this Agreement, which is intended to restate and replace all prior Surface Use Agleernents between Grantor, any of its affiliates or subsidiaries and any prior known or unknown Grantees. This Agreement provides the Grantee tire exclusive right to install, construc! operate and maintain various surface facilities on a certain described portion of Grantors properfy described on Exhibit "4" ("Grantor's Propefiy"), for the purpose of accepting transport, separating, cleaning, treating and processing produced water f}onr natural gas wells and oil wells in the Piceance Basin and storing processed water for recycle and reuse. To the extent reasonably possible, Grantee shall notify Grantor in advance of all sigrrificant changes regarding the use of the site from those plans previousiy cliscussed. All operations of the Grantee shall be containecl u,ithin the boundaries of this Agreernent and furthemrore only produced watel'flom the legion's lratural gas and oil wells shall be processed on this site. All other toxic or v/aste materials not witliin the chemistry of the produced water when delivered are strictly pi'ohibited fi'om entering this site. TERMS THEREFORE, in consideration of the mutual covenants provided in this Agreement, the Grantee agrees to pay the rental and damages descdbecl in this Agreement, along with other valuable considerations, the parlies agree to as foilorvs: 1. Lease; Option; Right of Filst Refusal a. Grantor hereby inìtialiy Leases to Grantee a seven (7) acre parcel of land (the "Initial Project Site") located within the eleven (11) acre portion of Grantor's Property referred to in Exhibit A as the '1-otal Project Site." Such lnitial Project Site shall be specifically identifrecl and located by Grantee to Grantor within the Total Project Site upon completion of Grantee's final site drau'ings and pennit approvals for its facilities and operations. 1, s b. Grantol hereby glants Grantee a ct-rntinuing and exclusive oplion to iease any amount of the remaining four (4) acres of the eleven (I1) acre Total Project Site not initialiy Leased to Grantee as the seven (7) acre Initial Project Site. Such four (4) acre parcel subject to this continuing option shall be refened to as fhe "Expansion Acreage." Grantee may exercise this option florn tiine to time by providing Grantor written notice of intent to exercise its option (in whole or in part) indicating the amount and location of the Expansion Area for whicir the option is sought to be exercised. In the eveirt of such an exelcise, that portion of the Expansion Acreage for which Grantee has exercised its continuing option shall becorne subject to the tenns of this Agreernent as Leased property. c. Grantor herby gmnts Grantee a continuing riglit of firct reflrsal to use or Lease that portion of Grantor's Property tirat is not contained within the Total Project Site (refen'ed to as the "Excess Grantor Acreage.") Pursuant to this right of first refusal, Grantor shall give written notice to GranTee of any bona fide offer whicir Grantor desires to accept given by a thù'd party desiring to purchase, lease or use any portion of the Excess Grantor Acreage which notice sirall describe in detail the temrs and conditions of the proposed offer. Grantee shall have sixty (60) days fì'om receipt of a proposed offer to exercise this right of first ¡efusal as to that portion of the Excess Grantor Acreage subject to the offer'. Grantee may exercise this right of first refusai by notifuing Grantor of its intent to do so in writing. ln the event of such an exercise, that portion of the Excess Grantor Acreage for udrich Grantee has exercisecl its continuing right of first refusal shall become sr-rbject to the tenns of this Agreement as Leased properfy. d. Prior to the Commencement Date of the lnitial Tenl of this Agreement (as defined below), as soon as possible after execution of this Agreement, Grantee shall specifically identify to Grantor the precise location of the lnitial Project Site and shall deliver to Grantor finai site dlawings delineating such Initial Project Site. Also pliol to the Commencemeirt Date of the Initial Temr of tliis Agreement, as soon as possible after execution of this Agreement, Gmntee shall obtain and deliver to Grantor a definitive specific legal description and survey ofthe Total Project Site, ifone does not already exist. e. Prior to the Commenceütent Date (as defìned in Section 2 below) Grantor gtants Grantee a "Glace Period" of tirne prior to the Commencement Date (as defined below) allorving Grantee to review arrd if necessary amend or submit applications and receive necessary and appropriate Speciai Use Permit (SUP) û'om Ga¡field CoLrnty, as well as Certificate of Detennination (CD) and NPDES applovals necessary for Grantee's opemtion of its ploduced water plocessing facilities and Grantee will pay no rents or use payments during this tirne. The regulatory application process is anticipated to require extensive supporting documentation, including, without lirnitation, site suwey, topographical, drainage plans, title leports, elc., in orcler to obtain SUP, CD and NPDES approvals, 7 \e 2, The Initial Tenn of this Agteentent shail be for a pedod of five (5) years commencing thefirst day of January ZAfi " {the "Commencement Date,l'). During the initial Temr thc annual payment as described below shall be lhe "Base" payment. The parties agree that upon completion of Initial Tentl, this Agreement shail be subject to an Extended Term of an additio'al five (5) years upon written mutual acceptance by both the Grantee and Grantor. At the expiration of the Extended Tenn, two (2) successive three (3) year Additional Tenns wili be availabie each upon the written rnutual acceptance by both the Grantee and Grantor. ln each instance, acceptance will not be unreasonably withheld by either parby. 3' During the Initial Tenn of this Agreement with respect to the seven (7) acre Initial project Site, and comrnencing in the ùritial year that any option for any Expansion'Acreage is exercised or any right of first refusal for any Excess Grantor Acreage is exercise, Grantee sha[lay to Grantor the Base annual sum of Five Thousand Dollars ($5,000) pel'acre. The first Base annual su*r shall be due and payable as of the Corulencement Date and each successive annual payment shall be due and payable in advance on or before the applicable successive anniversary-date(s) of the Commenceutent Date. Failure to make lease payments when due, shall not be deemed to terminate the Agreernent or Grantee's right to lease and use Grantor's Property, but interest, in the amount of 40/o pet annul11 over the then applicable plime rate of interest charged by Wells Fargo, N.4., or its successol(accluing on a daily basis), shail be due on sLrch clelinquent monies due from and afier the due date. Notwithstanding any of the above, Grantee may ilake Base payments on a rnonthly basis instead of annually upoll mutualagreement of the pafties. 4. Commenci¡g rvith the annual lease payment due on the second anniversary date of the Commencetnent Date and on an annual basis thereafter, the Base annual lease payment per acre shall be adjusted each such year tluough the lnitial Terrn upwards or downr.vards, on a percentage basis equal to any percentage differential in the US Consumer Price Index - Ail Urban Õonsu*"rt (CPI-U) cornpiled by the Bureau of Labor Statistics as m.easurecl at the Commencement Date or end of the irmnediately preceding lease tenn year'. This Adjusted Base then becomes the annual lease payrnent and the value upon which the nexi succeeding year's adjustment is calculated. Upon the expiration of the Initial tenn tire Extended Term annual lease Base paynent per acre shali be adjustecl upwatds by mLrltiplying the then Adjusted Base payment per acre by a factor equal to 1,25. At the option and election of the Glantor the Extended Tenn newly calculated Base annual sum may be dislegarded in favor of a "Royalty" snm that will be cornpensation in addition to the Initial Tenn Base sum. The Granto¡ may initiate negotiation of such a Royalty inclusion by giving written notice to the G¡antee at ieast ninety (90) days prior to the expiration date of the tnitial Term. In orcler for the Grantor to evaluate the Royalty proposal the Grantee will provide aii then historical quaÍterly ot'annual record of the volumes of produced water delivered for processing on the site. Should the Grantor and Gmntee a,elee on a Royalty payment option in addition to the Èase surn in-iieu ofthe 1.25 times the ther: Adjusted Base, as described above, there will be no further amual payment adjustments to the Base an¡ual sum. Should the pafies eiect not to accept a Royalty adjusillent, then the Extended Temr will again be adjusted based on CPI-U, as described above in the lnitial Tenn, only fwo more times which shall be at the expiration of the Extended Tenn and thereafter, at the end of the frrst Additional Tenn. Exhibit B is the mathematical guride to be used to compute all CPI-U adjustments to the annual lease payments, for thc lnitial Tenn and all extensions, as described above. 3 5' Conunencirìg ün the fust anniversary date of the Commencement Date, and,continuing, (if applicable) on each successive anniversary date of the lnitial Term, the Extended Term, oiany Additional Tenn, Grantee shall pay Grantor an arnount (the "Additional Annual payment") equál to the difference, but not below zeLo, between: (a)Twenty Thousand Dollars ($20,000), minus'(b) the value paid by Grantee to Gt'antor during the prior year with respect to any Expansion Acreage for which Grantee has exercised its continuing option, at the flat rate of Five Thousand Dollars ($5,000) per acre up to a maximt¡m of Twenfy Thousand Dollars ($20,000). A continuing right of first refusal is granted by the Grantor to the Glantee for "Excess Grantor Acreage" during t¡r lnitiut Term, any Extended Term(s) and any Additional Tenn(s). 6' Duling the tenn of this Agreement, Grantee agrees to reimbulse Grantor for any íncrease in real estate taxes assessed by any taxing airthority to and paicl by Grantor on Grantor'Á properfy over and above what level such real estate taxes would have been assessed br-rt for Grantee'i use of any po$ion of Grantor's Ploperty pLlrcuant to this Agreement. Future use by any other party within the "Excess Grantor Acreage" not related to tire Grantee will be excluded fi.om this reimbursement calculation. 7. The rights granted herein may be assigned in whole or in part, with prior written agreement by Grantor, which agleement will not be unreasonably withheld. 8. Tiris Agreernent shall be binding upon the heirs, successors and assigns of the Glantee and Grantor and shall be a covenant ruming with the land. 9. Only the Memorandurn of this Agreernent attached as Exhibit C shall be recorded in the Gar{ield County, Colorado public rccords. This full Agreement shall not be recorded nor shall its content be disclosed by either parfy hereto, except in response to an order of a courl having julisdiction over the parties and this Agreement. 10, Grantee shall maintain all equipment and facilities it places or constlucts on Grantor's Property in good appearance and lepail at all times prior to final reclamation. All above ground sttuctt"u'es shali be painted and maintain an appropriate colors approved by Grantor that blend in with the surrounding landscape. 11. All production water deliveled via a licensed water hauler or through a pipeline and any separated condensate shali be coiiected in onsite holding tanks. Processed waters to be recycled and reused by producers as well as rvaste stream brines shail be contained in ponds within tire boundalies of the site. All such holding tanks and ponds shail be properly benned and wlien necessary as required by regulatory agencies electronically monitored to conhol spills. 12. The entire site shall be contained rvithin a well-maintained appropriate commercial quality fence high enough to control and prevent tire deer and elk from entedng the area. When Grantee's personnel al'e not present on site, all gates shall be close and lockecl. Signage to prevent unlawful ently must be posted on perimeter fencing and is to be of a design in concert with the identification/directional signs to be placed at tlxee locations; one on Shaeffer Road io the South, one at the entrance to the site, and one, if the Grantee can obtain pennission fi'om the Benzel land owner, on County Road 3 i9 at a point approximately one a¡rd one-half miles north of the Shaeffer 4 \Þ residence, The Grantor(s) will approve the size, clesign, c.olor, and placement of all signs. lt is understood that the Grantee shall replace the current "Greenback" signage with their own signage of sirnilar size and representation. 13' Equiprnent or facilities that ale no longel needed for the operation on Granto¡'s property shall be prornptly removed therefrom. Unless Grantor otherwise agrees in writing, Granteeìhall not store material or equipment that is not in use, or planned for use within a short period of time, on Granto/s Property, 14' Grantee sirall cornply with all known applicable govemmental regulations and statutes while conducting its operations, Upon notice from Grantor, Grantee shall immediately rectif,i any spills, excessive oclorc, noise and other nuisances to tire standards required by the appütablê regulations. 15. The surface area of Grantee's operations on Grantor's Property shall be well rnaintained, graveled and/or other applicable surface treatment where vehicle traffic is present. If for any reason the site becomes rutted, dug up, sinkholes, erosion, or unsightly, etc., Grantee must rectify and retum the site to a well maintained appearance. Grantee is lesponsible for the controlling of all noxious weeds on the site. 16. All pits and/or ponds on the site shall be double linecl ancl elech'onically monitored for any leakage. Such lining rnaterial but it must be at least 60 inil thickness unless otherwise agreed to by Grantor in writing. A1l lining materials must be removed before reclamation of the pond or pit area. Excavated rnatelials shal1 be replaced "vithin ninety (90) days of the finalization or completion of operations. All tanks, in excess of 500 galions, shall have spillage containment structuLes ol otherwise as may be required by the regulatory authorities. Any and all spills must be irmnediately controlled, reported and cleaned up as required iry the regulatory authorities. Any agreed on variation fi'om the above provisions shall be made in writing signed by the parties. The Parties aglee that any ponds or pits ah'eady constructecl and present at the Glantor's Propefiy were consfi'ucted and approved by Grantor plior to this Agreement and do not therefore apply to this Section 16 of the Agreement. \7. Grantor hereby agrees to assign or cause the grant to Grantee of a nonexclusive access right-oÊway fìorn public roads and across the "ShaefÏel Ranch Propeúy" located in Section 12, Township 7 Soutir, Range 93 \\¡est,61 P.M,, Garfield County, Colorado, as more specifically desclibed on tire attached Exhibit "D". It is hereby noted that these roads are also utilized by the Oil and Gas operator on the Shaeffel Ranch Properly. Grantee shall be cooperative with the Oil and Gas operator and Grantee shail make available to Grantor a copy of any agreement between tlie Oil and Gas operator and Grantee as to the routine maintenance responsibilities of each party of mutually used roads, drainage structures, gates, etc. 18. All of Glantor's cunently existing access roads, fences, cattle guards and gates impacted by Grantee's operations shall be rnaintained by Grantee in as good condition as existed at the tiue of the execution of tiris Agreement. Grantor shall give Grantee written notice of any degradation or damage to such irnprovenents caused by Gmntee's operations. Within seven (7) days of notice (subject to inclement weather) Granfee shall repair or restore the damaged propefiy to its previous 5 rá ïäi'lffiJt better' Grantee shall help keep all roads in good order at alr times f¡ee of weecrs, ritter, 19 ' Grantee' its agents' and ernployees shall abide by a 15 mph speed limit on the propeffy atat rirnes' If such speed is r*r..årã, il äil;'iã,r'oio=oon, ?{ any operaror, emproyee,ffåiiä:,åï'älffiiffi åïäi$::i:.-,1;15;:i:Funn,oii,oıpãiä,uo,n..,úich 2a' Grantee shall use reasonable methods to li'rit dust fi'om roads. Magnesium chloride sharlbe applied when t'equested in w'iting bv th. cru,rto,l-up îã'u'*u"imum "i;ñ:;;;äes per year.21. Grantee shall take all necessarprevent its oReratìons r';;r cr,;ü"''''"i""t:;:liï:t.l,i!ïl;üåî äi:#lïi;:,iJïfiå:,::or water weils located on Grantor's Èroperty or the shaeffe¡-Rancrr properry, 22' Grantee' its ernployees, conüactors,.subconh'actors, agents, business invitees ancr otliervisitors shall Lrse seFcàntáin"á t;;;; faciiities *À¡. î"norcring operations wirhin Granree,sfacilities on Grantot's Property ..t'"i.*i uy ;; r*ö*ii r,r"o septic sysrem fu'y containedwitliin the site' There shalinoíb" unyìr., pors.iiion, transfer, p,,..hure oi ra. oriuegar drugs,narcotics' or other unlawftll suuttunces and materiaí, ,ñr" on trre site. ïie-use, possession,rransfer, purchase or sare of arcohoric tr.""iæ"r, 'ñ;;,ì,,lï"d orhe¡ weapons up on Grantor,sPropertv or the shTtt Ranch È."p."v i, J*pr"rrry-^fïårrrurr"a. No dıgs arË permitted onGrantor's Property'^No hunting or tt'uifurg is permrtteá Jn éiunror"s properfy and no such rightsare granted by this Agreement'brantee'agrees to notify ail of iis contractors, agents and employeesof these reshictions' Any i'dividrut *hã'uiorut., trri, p*;;;;, may be denieã access by Granror, 23 ' At all times while this Agt'eement is in effect and as ma,y be necessary for any obrigationsthat survived this Agreement, Glantee shall r.""p it, of.,aionr'in.ur"d, 9r cornpry with appricableseiÊinsurance laws ancl reguíationt rot u,,to*oùii*. glnrrut üàuirity, and worte¡s compensationinsurance as wet as for an! d;;g;; ;;urred on orîo cruni*,s properry. 24' Grantee shall at ìts sole expense'..f:t o:,"*or's.Prope'ty fi.ee and clear of all liens andencumbrances resulting from Grantee's or its agent's activitiesL ihe proper.¡2, ,"à ,r,rn indernnifyand hold harmless Giantor fì'om anà aguh;r uny *J-rji"ri.nr, craims, denands, cosrs, andexpenses' i'clucling' without limitation, ieasonablå atto'rey f..s und court costs, in connectionwith, or arising out of, any work oon., iuùo,.perfonned, or matedar fuinished. 25' Grantee and Granto¡ strall irold semi-tnonthly-meetings during the construction period ofGmntee's facilities u1qq.u.utlorv -".ffi.thereaftericr;il; fi; enrire rem of this Agreernent forconstructive and good faith ctialôgue to r'ãview un¿ ¿is.urì ïr. ,¡uru, of compriance wltir the terms lffl;onottton of this Ag'eernent.- The *reeting shar] be ,i r.,"n ìi,n. and prace.as the parties sha' 6 ._¿ FINAL RECLAMATION 1 - Upon termiuatiul uf ltris Agreement, Gïantee and Grantor shall mutually agree to a specificdetailed Pl¿n of Final Reclamation of the site. Generally, the applicable -Stíte of Colorado regulatory authority pre-development lequilement for a "Final Reclåmafion plan" and "Financial Assurance" instrument will govern; however, Grantor will, to the extent reasonably possible, have lhe opportunity to provide input thereon, including any amendrnents thereto. n*cept as set forth below, unless otherwise agteed by the parties and the State of Colorado or its governing r-egulatory authority in writing, any and all improvements, stl'LlctLu'es, foundations, t-anks, ponds, lineri, buildings, fences, fixtures and eqr.riprnent, landscape contours, roads, "on"r"ia'pads, wells, vegetation, or other improvements, may, at the election of the Grantor, remain on Grantor's Properfy and become par"t of Grantor's Property. The foregoing provision shall not apply: (a) with respect to any specific itern which has not, within the applicable period of tinì; (including extensions) set forth in the Final Reclamation Plan or under applicable law, been properly del commissioned or taken out of service; or (b) with lespect to any specific item which rnãy be reasonably foreseen to be, as of the conclLrsion work lrnder the Final Reclamation plan, the suúject or cause of matelial environmental iiability to Grantor. Grantee shail rnaintain and keep in piace for such time and in such amount a mechanism of fiirancial assurance for facility closure and post- closure in such fonn as shall be required, from time to time, by applicable law. Such financial assurance mechanism shall be dedicated by Grantee for site clostre and post-closure purposes until the unused amount (if any) is released by applicable government alrthorities as piovided by applicable law. To the extent that Grantor has incuned any cost or expense in conneciion with thã site closure, and such cost or expense has irot been reimbrnsecl to Grantor's satisfaction tilough Grantor's retention of site improvements in connection with the closure, then Grantor shall have the firct claim on any amounts so released by tire ar-ithorities fi'om the financial assurance meciranism to reimburse Grantor for such costs and expenses, 2. Grantee shail use reasor:.abie effofis to deliver Grantor's property to Grantor in accordance with the Final Reciamation Plan and in the manner required by the rules and regulations of the appiicable regulatory authorities of the state of Colorado. No trash, litter, and/or debris rnay be buried or burned for any reason. 3. Grantee shall use its best efforts to commence Final Reclamation Plan within two months of pennanent cessalion of its operations or tfie time it is validly ordered to do so by the State of Colomdo, whichever occul's first, and shall use its best efforts to complete the reclamation within two years. Grantee's reclamation responsibilities shali be ongoing and shall continue even afTer the tennination of this Agreement until Grantor and./or the State of Colorado provides Grantee with a written release of the reclamation responsibilities. NOTICES 1. Wherever provision is made in tiiis Agreement for the getting, service, or delivery of any notice, statement, payrnent or any other instruinent, such notice shall be given by (a) personal delivery, or (b) by cerlified mail or commercial express mail service acldressed to the party entitled to receive the same at the acldress stated in the introductory palagraph. Each party rnay change that 7 J' paffy's rnailing addrcss by givin-q the other parly written notice of such change. personal deliveryshall be deemed to have beàn given, served'and dJ;.,.J;p"n receipt, 2' Grantee shall provide or have available fol inspectiol by the Grantor, copies of all forms,notices' plans' test or other documentation r.gurãingipìrrr, r.urc and the ¡emediation efforts andtirneline to elirninate any adverse consequence to thð rit., .t.., on Grantor's properry that are filedwith the locar govemment representative or otrrer reguiatory agencies. 3' Indemnity' Grantee agl'ees to fLrlly defend, protect, inclernnify, and hold hamrless Grantor,its officers' directors, partnerq principals, guær"vlãri"ã"'"gå*r from and against eacir and everyclainr'' demand or cause of actiôn uod tiuuitiry, cåsts u"ãiorîrp.nse (including but not limited toreasonable attomey fees and costs incu'red in defe*se of Grantor and its agents), or damages orloss in connection therewith, which may be made or ur*.nå¿ by Grantee, it, ofü".rr, directors,paftners' employees and/or agents, or which may be urr.n.Juy any third paay (includi'g but notlinited to Grantor''s agents) on account of persánal ¡":rrv,l.rtrr orproperfy damage caused by,arising or-rt ofl, or in any way incidental to or in .o*."rion r"ith Grantee,si,rrärc,.ntor's properryor the rights granted undel this Agreeurent, excepf to the extent such damage or injr-rry results fromthe actions of GrantoÏ or its agenis or Grantor has assumed such liability. where personal injury,death' or loss of or damage to ploperty, is the result of theioinì u"tiorrs oiGrantor år its agents andGrantee, each paffy's duty ofihe indei¡¡ification shail uå-io proportion to its allocable share ofsuch action' Grantor shall be pro*idecl copies of all insumnce binders and upon request Granteedisclos're docuurents relativeio their risk-managen rnt u.iirliies in tire "*. ;¡G;;;or,s propef¡2. 4' I1 is expressly agreed that the indemnity obligations clescribed in section (3) abovespecifically includes, but is not limitecl to. claii's ,t'iJ"ã'*oer all federai, stare and localenvironmental laws rules and regulations. 5' Grantee shall have Liabilit¡r Insurance coverage on its operations, The face value of thispolicy shall be no less than $1'000 ,000. Grantor shaliu, nurrr"o in said policy as an ,,additional insured parly". 6' No part of this Agreetnent shall be construed as to abridge or relieve Grantee û.om any orall applícable coGCC, CDPHE, county, state or federal regulations, present and future orobligations under any lease agreement befween the parties. 7 ' Amendments' This Agreernent rnay oniy be anrendecl by written agreement of both par.ties.This Agree*rent cannot be amended or temrinaied orail¡ :-- -' 8' This Agreement is.made subject to any ancl all existing third-par1y easeûlents, right ofways' liens, agl'eelnents, burdens, êncumbrances, restricions, and àeretts in title affectingGlantor's Property' Grantor does not in any rvay warrant or guar.antee title to Grantor,s properfy,However, Grantor rcpresents that it has infonned Grantee a'bout any rights of way, easements,burdens' usçs, encumbrances, restdctions and defects that are known to Grantee affecting Grantor,sProperty, and Grantor has provicled Grantee with copiei ri."v irtr. ïeports, i¡, i"ri"äre policies,sulveys, titie opinions or the like that are within tir" poss"ríion o, control of Grantor affecting )5 I Glantor's Ploperty or, if available, the broader Shaeffer Ranch Property. Grantee, at its expense,may contract to have a tìtle search perfonled, or title insurance issued. 9'^ - Grantee agrees to consult with Grantor regarding all significant operations involving useof Grantor'sProper-fy' To the extent reasonably possibtelGrunt!, shall noiiff Grantor in advanceof any significant change regarding the use of-any portion of Gmntor's properry from those planspreviously discussed. 10' Severability. If any provision of this Agreement is illegal, invalid or unenforceable underpresent or future laws applicable to this Agreement, the partià intend that the remainder of thisAgreement shall remain in full force and effect so ar to fr',lfill as firlly as possible ttre intent of theparties as expressed by the then existing terns of the Agreement including the invalidatedprovision. HEIRS, SUCCESSORS AND ASSIGNS 1. Subject to any-lirnitations on assigrunent provided in this Agreement, this Agreernent shallbe binding upon and inure to the benefit of the parlies and their r-espective heirs siccessors andassigns. Assignment by Grantee of some or all ãf its rights hereunder shall not release Granteefrom liability under this Agreernent, unl.ess specificaily released by Grantor in writing which release shail not be unreasonably withheld, 2. Any assignee of Grantee shall be required to obtaiir anclprovide G.antor with evidence of adequate insurance to cover its opelations, with coverage equal to or greater than those of Granteeirnmediately prior to the assignrnent. In the event tire rigtrts contJined in this Agreement areassigned separately, Grantor reselves the right to hold all parties individually and seierally liablefor all conditions of this Agreement. 3. Grantor and Grantee wili jointly execute a Men:orandur¡ of this Agreement for thepurposes of recordation and placing third parlies on notice of this Agreement. lSignatule Page to Followl 9 AGREED and EXECUTED by the parties as of the date first above written. Grantor: NE BY NE, LLLP, a Colorado Lirnited Liability Limited Partnership By: Jake VÊ, 2235F,. Flamingo Rd., Ste 2û+.G.#tsL Las Vegas, NV 89119 Grantee: NEXO Merchant Plant I, LLC Je €it r++ttø7 NEXO Merchant Plant I, LLC 1389 Center Drive Suite 120 Park city, uT 84098 By: 1CI EXHIBIT A Grantor's Propcrty Description: Real property, togetherwith any improvements thereon, located in the County of Garfield andState of Colorado described as follows: 7 South.Range 93 West. 6 /h P.M Section 12: NEI/4 NEt/4 Together with a non-exclusive right of access tl:t:to from a public road over existing roads onlands to which Gantor is entitled to access in said Sectio' 12. said Parcel having an area of 40 .000 acres, rlore or less, as described. Total Proiect Site: The above Grantor's Property contains within its borders the Total project Site described asfollows: A parcel of land located in the Northeast comer of Section 12, Township 7 South, Range 93 west, io tl. 6th Principal Meridian, in Garfield County, Colomdo and being a portion oittut fact ofland described in Book 777,Page 814, Garfield County records *ã uåing mor.e particularlydescribed as follows: COMMENCING at the Northeast comer of said Section I2, whence the Southeast corner of saidSection 12 bears South 00"59'37" East, a distance of 5258.61 feet for a basis of beadngs, with allbearings contained herein relative theretol thence South 00'59'37" East, a distance of 139,57 feet,along the East line of said Section 12 to the POINT OF BEGINNING; thence South 00o59,37,,East, a'distance of 610.48 feet, continuing along said East line of said Section 12; thence South89o58'25" West, a distance of 785,00 feet; thence North 00"59'37" West, a distance of 610.4g feet;thence North 89o58'25" East, a distance of 785.00 feet to a point on the East line of said Section 12, the POINT OF BEGiNNING. said rotal Project site having an area of 11.000 Acres, more o¡-less, as described 11 \ç EXHIBIT B Example how ihe CPI escaletion formula rvor-ild ivork using actual CPi -U data for the past 16 years (13!¡3 to 2Cü3r Percent change from Year I Year #CPI-U 142.6 146.2 ì50.3 154.4 159.'1 ¿ 4 Year 4 004 1994 1 995 1 996 1997 0 0.0252 ù 054 0.0827 0.1157 Annual Lease Payment per Acre 5000.00 512ô.00 5270.00 541 3.50 5578.50 6973.1 2 6973 't2 7089.57 7284.12 7555.38 7641.84 9552.30 Agreement extension erfler 5 yeã¡'s. Annual lease payment per acre will be adjusted 125 tìnles yee r 5 value (5578.50 x1 .25] Perceni châi,.ge from year ô b 7 B s 1 998 1 999 2000 2041 2002 2û03 2404 2005 161.6 '164 .:t 168.8 17 5.1 177 .1 181 ,7 185.2 190.7 t 0.0i07 0 0446 O OB:J5 0.0959 0 0.0193 0.0495 10 Agreement extension after 10 ,'ears Annual þase payment per acre will be adjusteci 1.25 times ;vear '1 0 vaiue {.7641.84 x 1.25) Percent öhãnge from year 1 1 9552.3t 9736.66 10025.14 11 12 10 tz s EXHIBIT B (Continued) Agreenreni exiension aTîe," 10years. Annua,lsese payment per acre will be adjusted 1.25 iil--es yeìti" .lJ',,arue ( 1 0025.14 .x 1 25ì Percent change from year 14 14 15 16 2006 20a7 20û8 198.3 202.4 211 .1 0 0.0207 0.0645 12531.42 12531.42 n7sa.82 1 3333.7û 13 \ç EXHIBIT C MEMORAND UIVI OF ACJREEM$N.I' THIS MEMORANDUM OF AGREEMENT (Îhe "Memorandum") dated the lst day of January, 2017, between NE BY NE, LLLP, a Colorado limited liability limited partnership (Grantor), whose address is 5957 County Rd. 319, Rifle CO 81650 , and NEXO Merchant Plant I, LLC, a Delaware limited liability company (Grantee), whose aclclress is 1389 Center Palk Drive Suite 120 park City UT 84098, is entered into for the purpose of giving record notice of a certain SURFACE USE, OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT entered into between Granto¡ and Grantee, dated as of even date herewith, conceming the following descríbed property. Real properfy, together with any improvements thereon, located in the County of Garfield and State of Coiorado described as follows: Township 7 South. Range 93 West.6'l'1'P.M. Section 12: NEll4 NEl/4 Together with a non-exclusive right of access thereto t'om a public road over existing roads on lands to which Grantor is entitled to access in said Section 12. Said Parcel having an area of 40.000 acres, ltore or less, as described. Tire Grantor and Grantee have signed this Memorandum as of the date filst above written. Grantor: NE BY NE, LLLP, a Colorado Liinited Liability Limited Partnership By Jake ve, Partnet 2235 E. Flarningo Rd., Ste zûre Las Vegas, NV 89119 ç tlz Gmntee: NEXO Mercirant Plant l, LLC By I oÇH wt-1t ,/ Membe/ NEXO Merchant Plant I, LLC 1389 Center Drive Suite 120 Park City, UT 84098 l 74 $ EXHIBIT C MEMORANDTIM OF AGREEMENT (continued) STATE OF COLORADO SS, COTINTY OF GARFtEtÐJo$uıcrr The was acknowledged before ine this ofNE BY NE, LLLP. 'Wou, "r Þürîrtp&v2oäL¡ uv and official seal My coinmission expiles STATE OF UTAH COIINTY OF SUMMIT The ROXANNE EM KARGOL NOTARY PUELIC STATE OF COLORADO NOTARY lD 201¡14032685 MY COMMISSION EXPIRES Notary Public nre tlris /5 auy of ñ=h , 201t, by I, LLC. SS. was acknor.r'ledged before of NEXO Merchant PÌant lng Witness rny hand and official seal My commission expires: 8ßETf MICHAEL CROFT t{otary Public - St¡te ol Ulah tomm. No. 690870 My Commission ExPires on Scp 1.2020 After recording please return to: Laq,rence R. Green,Esq. Balcomb & Green. P.C P.O. Drawer 790 Glenwood Springs, CO 81601 @ Notaiy Public 15 )5 EXHIBIT D SHAEFFER RANCH PROPERTY Legal Description: Gafield County Parcel No. 2403-123-00-026: a 698.S-acre parcei: A parcel of land as described in the Wamanty Deed, Reception No. 3 I 1428, Book 564,Page 382, Garfield County records : The following described property in the County of Garfield and State of Colorado: Township 7 South, Range 92 West of the Sixth P.M. Section 18 Lot i; E1/2NW1/4and 3 acres situate in Lot 2 clescribed as follows: Beginning at the N W comer of the NE SW of said Section 18; thence South 1320 feet; tirence West 99 feet; tìrence NorÎh 1320 feet; thence East 99 feet to the place of beginriiirg. Township 7 South, Range 93 West of the Sixtlt P.M. Section 12: W t 12: NE1 /4; N 1i2SE 1/4 Section 13 : N"W1/4NEi/4 All the above described property contains 698.85 Actes, more ol'less, as described above 16 .t'v trll ff¡¡ lll¡lüT#üJlÈfl,[ hffiH{tlfüffi ffi þl tr fi I RcecÞt¡on*: 7l}&21?, øE l1ët2ø1ø @:ÉzOII Pjll Jcan nlb.ric6I of 1 Feo Fea:ltt.oo floc Fêê:8-96 eAFFIELD CO${TY CO SPECIAL WARRANTY DEED THm DEED, made this l* dav of hr*Or**L, 2o10, betrveen SHAEFFE& LTD', a colorado limited p.*"orr¡p, (ıñior), una hrp eV'NÈ_ L!t-n, a colorado limited liabilitv limited purtreohlp, whose iegal address is 5957 County Road 319. Rifle, CO 8i650, (Grantee): WITNEssETH, that the Grantor, for and in consideration of thc sum of Ten Dollars and Other Good and Valuable Consideration, the receipt and sufficiency of which is hereby acknowledged,_hereby gants' bargains, sells, conveys and confirms, unto the Grantee and the Grantee's succ€ssors and assigns forever all the"real property, together with any improvements thereon, located in the County of Garficld and Sate of Colorado described as follows: Township 7 South. Ranee 93 Wcst- 6th P'M' Section l2: NEl14 NEI/4 Together with a non-exclusive right of access tlereto Èorn a public road over existing roads on lands owned by Grantor in said Section l2' TÕGETHER with all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaini¡g, the reversions, reirainders, rents, issues and profits fhereof, and all the estale, right, title, inærest, "tål* un¿ ãemand whatsoever of the Grantor, either in law or equity, of, in and to the abovc bargained premises, with the hereditaments and appurtenances' To HAvE AND To HoLD the said premises above bargained a¡rd described, with the appurtenances, unto the Grantee, and the Grantee's successors and assigns forever. The Grantor, for itself, its heirs and personal represenlatives, does covenant and agree that the Grantor shall and will W¡nn¡Nr AND FOREVER 'Onpenop the above-bargainecl premises in the quiet and ¡reaceable possession of the Grantee and the successors and assigns of the Graitce, against all and cvery person or persons claiming the whole or any part thereof, by' through-or under the Gr"ntãr çxce,pt and subject to real property iaxes not yet due and payable and all easernents and oÎåer rnatters ofrecord or in place burdening the said properfy. IF¡ lvrrNtss Wnnnsor, the Grantor has executed this deed on the date set lbÍh above' SHAEFFER LTD.. By: Humac Management, Inc" General Parher COLJNTY OF CARFIELD ) Thc lurcguitlg instrunrent was ¿cknorvlcdgcd belbre me by l-larold B" Shaeffer as President of Humac Management, Ittc', STATEOFCOLORADO ) Witness my hand and official seal' My commission exPircs: After record¡nq olease r.etum to: Lawr€nce R. Greên, Esg- Ealcomb & Green, P.C. P.O. Drawe¡ 790 rSlenwood Sprlngs, tÖ 6lð01 Harold B. Shaeffer, General Partner of tr,¡, l# day of ) ss. By ?f) I lt HOTARY PUBI.JC STATË OË ÖOLÕRAOT N otary