HomeMy WebLinkAbout2.0 BOCC Staff Report 06.16.2008Exhibits for Black Diamond Minerals June 16, 2008 BOCC Hearing
PROJECT INFORMATION AND STAFF COMMENTS
TYPE OF REVIEW
APPLICANT
LOCATION
ACCESS
SITE INFORMATION
BOCC 06/16/08
KE
Special Use Permit for "Extraction,
Processing, Storage and Material Handling of
Natural Resources" for a Shale Borrow Pit
Black Diamond Minerals, LLC
Approximately 9 miles south of City of Rifle
County Road 317 (Beaver Creek Road) and
Forest Service Road 824
Teepee Park Ranch, 4,332 acres with SUP
boundary of <1 acre occurring in the S W %. of
Section 25, Township 7S Range 84W of the
61h P.M.
EXISTING ZONING Agriculture / Residential / Rural Density
(ARRD)
I. REQUEST
The Applicant requests approval of a
Special Use Permit for "Extraction,
Storage, Processing, and Material
Handling of Natural Resources" for a
Shale Borrow Pit. On May 12, 2008
the Board of County Commissioners
decided to not refer the request to the
Planning Commission.
II. GENERAL LOCATION/
SITE DESCRIPTION
The 4,332 -acre property which comprises Teepee Park Ranch is located south of the terminus of
County Road 317 (Beaver Creek Road) via Forest Service Road 824. The Board of County
Commissioners approved a Special Use Permit for logging on the property, memorialized in
Resolution 2003-39. The logging activity terminated several years ago on the site and the current
property owner has no desire to utilize that permit. Oil and Gas Industry activities are currently in
exploratory phases in the area.
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Page 2
The subject borrow pit is located between Beaver Creek and Porcupine Creek and wilt serve to
provide shale for purposes that include road construction and maintenance, both within the ranch
property and to upgrade the Forest Service Road to allow for O&G exploration.
III. ZONING & ADJACENT USES
The property is located within the A/R/RD zone district
which contemplates Processing, Storage and Material
Handling of Natural Resources as a Special Use
requiring approval by the Board of County
Commissioners. The adjacent map shows the general
location of the borrow pit encircled in red.
The Teepee Park Ranch property encompasses 4,332
acres, however the scope of the permit is limited to an
area that is less than one acre. Immediately adjacent
land uses include Federal and State land, with the
nearest private property, owned by George Bauer,
approximately '/4 mile north of the northern property
boundary of Black Diamond Minerals.
IV. GENERAL PROJECT DESCRIPTION
The project generally proposes to mine shale from an
existing borrow pit on the property. The existence of
the pit was used historically to support ranching
activities and road improvements within the property.
The amount of material to be extracted is 3,600 cubicfill
yards of shale, a volume that will be utilized for well
pad construction and initial road improvements.
Approximately 150 cubic yards annually will be
required for maintenance of the roads.
The extraction process entails utilization of heavy
equipment (loader, rock haulers, and backhoe) to
remove the shale which will then be transported to
locations within the property and along the Forest
Service road as needed for construction and
t Ah 11 be
mam enance. crus er wi uta ized for
processing of the shale, and no storage area is requested as the shale will be trucked to other
locations within the property or on USFS 824. Hauling of shale will not take place on, nor impact
7
r-
mam enance. crus er wi uta ized for
processing of the shale, and no storage area is requested as the shale will be trucked to other
locations within the property or on USFS 824. Hauling of shale will not take place on, nor impact
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the County Road system. The applicant has stated that no electricity or other utility improvements
are required for this operation.
V. AUTHORITY & APPLICABILITY
Pursuant to Section 9.03.04 of the Zoning Resolution, an application for a Special Use Permit shall
be approved or denied by the Board of County Commissioners after holding a public hearing thereon
in conformance with all provisions of the Zoning Resolution. The Board may, at its discretion, refer
the Application to the Planning Commission for a recommendation. At their meeting held on May
12, 2008, the Board determined that the application would not be referred to the Planning
Commission.
VI. REVIEW AGENCY AND OTHER COMMENTS
Comments have been received from the following agencies / community groups and are integrated
throughout this memorandum as applicable.
1. Bookcliff Soil Conservation District: No Comments received.
2. City of Rifle: Exhibit H
3. Rifle Fire Protection District: No Comments received.
4. Bureau of Land Management: No Comments received.
5. United States Forest Service: No Comments received.
6. Colorado Department of Public Health & Environment: No comments received.
7. Colorado Division of Reclamation and Mine Safety: No comments received.
8. Garfield County Vegetation Management: Exhibit I
9. County Road and Bridge Department: Exhibit G
10. Resource Engineering (on behalf of the County): Exhibit J
VTI. GARFIELD COUNTY COMPREHENSIVE PLAN
1 325 3y
329
317
§50
m
Opel)
Outlying Residential space
Teepee Park Ranch
6
The project site is located within
Study Areas 2 and 3 of the
Garfield County Comprehensive
Plan and is identified as
"Outlying Residential". The site
is surrounded by Open Space
(Forest Service). The
designation on the property is to
be used as a guide
A) GOALS
➢ Garfield County
recognizes that under
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Colorado law, the surface and mineral interests have certain legal rights and privileges,
including the right to extract and develop these interests. Furthermore, private property
owners also have certain legal rights and privileges, including the right to have the mineral
estate developed in a reasonable manner and to have adverse land use impacts mitigated.
➢ Garfield County will encourage the development of a diversified industrial base for the
County which recognizes the human resources, natural resources and physical location -to -
market capabilities of the community, and which further recognizes and addresses the social
and environmental impacts of industrial uses.
B) POLICIES
➢ Garfield County, to the extent legally possible, will require adequate mitigation to address
the impacts of mineral extraction on adjacent land owners.
➢ Dust, odors and fumes should be contained within the extraction site generating such
emissions and should not negatively affect any surrounding land use.
➢ Landscaping and screening will be required to address specific visual impacts of industrial
development.
➢ Zoning regulations and a review process will be developed and enforced that recognize the
differences in size, scope, and type of industrial development. A hierarchical review
process will be developed which respects the unique land use issues based on the size and
scope of the project. The County will require impact mitigation for these projects, when
appropriate.
➢ The project review process will include the identification and mitigation of transportation
impacts related to industrial development.
➢ Garfield County, in coordination with relevant special districts, authorities and
municipalities, will require that developers of energy or mineral extraction projects finance
the construction and operation of any public improvements which, now or in the future, will
be required by their projects.
➢ Garfield County will require developers of mineral extraction projects to participate in and
contribute to the funding of the County's monitoring of the demographic changes and
socioeconomic impacts associated with such projects. The applicability of this policy will be
assessed on a case-by-case basis by the Board of County Commissioners.
➢ County zoning regulations regarding industrial development will be compatible with land
use policies of adjacent jurisdictions.
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C) OBJECTIVES
➢ The County will ensure that mineral extraction activities will not adversely affect the natural
environment, including air quality, water quality, wildlife habitat or important visual
resources.
➢ Encourage the location of industrial development in areas where visual, noise, air quality
and infrastructure impacts are reduced.
➢ The County, through the implementation of the Comprehensive Plan, Zoning, and Special
Use Permit, will address future compatibility issues with current mining operations.
➢ Ensure that Zoning Regulations addressing Commercial and Industrial uses reflect the
changing land use patterns and demographics of the County and encourage the further
diversification of the County's economy.
➢ Ensure that the type, size and scope of industrial and commercial development are
consistent with the long-term land use objectives of the County.
D) STAFF FINDINGS
Staff finds that the use, operation, and reclamation of this proposal is generally compatible
with the goals and objectives of the Comprehensive Plan. The size of the overall Ranch
mitigates visual impact and minimal impacts will result from this project as the extracted
material will be utilized on-site and on the road surfaces to the Ranch. Mitigation measures
to ensure protection of the environment and to minimize impacts associated with the
industrial use are minimal due to the limited nature of the proposal as well as the distance of
the borrow pit from adjacent properties. Reclamation surety will assure that the land will be
reclaimed post -mining to the extent possible.
VIII. REVIEW CRITERIA FOR SPECIAL USE PERMITS (SECTION 5:03)
Pursuant to Section 5.03, as listed under the Zone District Regulations, special uses shall conform to
all requirements listed thereunder and elsewhere in the Zoning Resolution, as well as the following
standards:
1. Utilities adequate to provide water and sanitation service based on accepted engineering
standards and approved by the Board of County Commissioners shall either be in place or shall be
constructed in conjunction with the proposed use.
Response
The application states that utilities to provide water and sanitation services are not required at this
particular location as the limited nature of the use with nearby facilities will suffice.
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Page 6
2. Street improvements adequate to accommodate traffic volume generated by the proposed
use and to provide safe, convenient access to the use shall either be in place or shall be
constructed in conjunction with the proposed use.
Response
There will be little traffic volume associated with this proposal other than mobilization of the
equipment to the site which the applicant has stated will remain on the site for the life of the use.
Exhibit M is the application for use of FS Road 824 as access for this and other proposed uses on the
Ranch. In addition, Garfield County Road and Bridge has responded to the application with the
following comments:
• We will need to work with Black Diamond Minerals on a road plan for the use of Cr. 317 as
some improvements will be needed to support their total drilling plan. We have no problem
with Black Diamond Mineral moving in equipment for this application, but will need to have
the road plan in place prior to their drilling operation.
• All vehicles hauling equipment and material for this project shall abide by Garfield County's
oversize/overweight system.
• All vehicle requiring oversize/overweight permits shall have a letter on file with Garfield
County Road & Bridge Department from Black Diamond Minerals stating these vehicles can
obtain oversize/overweight permits under the road bond that Black Diamond Minerals has on
file with Garfield County.
• All large vehicles requiring oversize/overweight permits shall have a pilot car in the front and
a pilot car in the rear of each vehicle.
3. Design of the proposed use is organized to minimize impact on adjacent uses of land
through installation of screen fences or landscape materials on the periphery of the lot and by
location of intensively utilized areas, access points, lighting and signs in such a manner as to
protect established neighborhood character.
Response
There will be no lighting, nor signs associated with the borrow pit. The pit location within the 4,332
acre parcel is sufficient to screen the extraction activities as well as the transportation of the material
to other locations within the parcel. The neighborhood character for this area will not be adversely
impacted by this proposal.
Section 5.03.07 /Industrial Operations/
Pursuant to Section 5.03.07 of the Zoning Resolution, a permit for Industrial Operations requires the
submittal of an impact statement on the proposed use describing its location, scope, design and
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construction schedule, including an explanation of its operational characteristics. The impact
statement is required to address the following:
1. (A) Existing lawful use of water through depletion or pollution ofsurface run-off, stream,/low
or ground water.
Response
Dry mining of the shale will not involve the use of water however surface runoff associated with the
proposed improvements to the road surfaces necessitated the applicant apply to the City of Rifle for
a Watershed Permit for the site to ensure protection of the City water quality. The City of Rifle
reviewed and approved the permit at a hearing held on June 4, 2008 (see Exhibit K). That permit
also encompasses Oil and Gas Industry activities that may take place on the Ranch.
The application also included a section regarding the necessity of a Stormwater Permit for the site.
4.0 WATER USE AND TREATMENT
No water will be used and no wastewater will be treated in conjunction with the shale borrow pit.
A Colorado Department of Public Health and Environment (CDPHE) Water Quality Control
Division (VVCCD) Stormwater Permit will be obtained for the project.
Page 6 of Submittal
Additional information has been provided that application is in progress for a Water Quality Control
Division Discharge Permit from CDPHE.
1.(B) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or
vibration, or other emanations.
Response
The location of the borrow pit within the 4,332 acre Ranch property will virtually eliminate any
impact dust, smoke, noise, glare and vibration to adjacent property.
Dust Control
The applicant has stated that they will partake in a joint dust control program for CR 317 (Beaver
Creek Road) with other O&G companies operating in the area.
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Page 8
Noise Generation
.-d Environmental. The results were
based upon numerous locations
of emanations from the property
line and it was found that, based
upon the equipment to be
utilized, the predicted noise
levels ranged from 13 to 44 Dba
which are consistent with State
Statute. The location of the
borrow pit and equipment related
to the extraction activity are
located approximately 2,300 feet
from the nearest property line of
the Ranch thus noise from this
activity will not violate this
statute.
Hours of Operation
The proposed hours of operation have been identified as Monday through Saturday from 7 a.m. to 6
p.m.
1. (C) Impacts on wildlife and domestic animals through the creation of hazardous attractions,
alteration of existing native vegetation, blockade of migration routes, use patterns or other
disruptions.
Response
Noxious Weed Management
The County Vegetation Manager reviewed the proposal and found the submittal information
sufficient and reseeding acceptable. The revegetation security is recommended to be $4,000.00.
I.D) Affirmatively show the impacts of truck and automobile traffic to and from such uses and
their impacts to areas in the County.
Response
The applicant has stated that the borrow pit will minimize traffic impacts as the material necessary to
complete the improvements related to Oil and Gas activities will be on-site and therefore will not be
hauled from Rifle or other areas of the valley.
1.(E) That sufficient distances shall separate such use from abutting property which might
otherwise be damaged by operations of the proposed use(s).
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Response
The nearest private property is located approximately '/< mile from this use.
1.(F) Mitigation measures proposed for all of the foregoing impacts identified and for the
standards identified in Section 5.03.08 of this Resolution.
Enforcement Options:
a) The County commits to notifying the Operator of any compliance concern and allows
an inspection with site personnel and the designated County inspector prior to
contacting any agency.
b) The County can request a site inspection with one day's notice to the Operator. Full
access to any part ofthe site will be granted. On request, all paperwork must be shown.
The County cannot request a large number of inspections that would interfere with
normal operation without cause.
c) A full list of all permits will be provided to the County. Any person at any time can
call the following agencies directly and request an inspection ifthey believe a condition
of that agencies permit is being violated.
- CDPHE Water Quality Control 303-692-3500
-Division of Reclamation, Mining and Safety 303-866-3567
- City of Rifle — Watershed Permit 970-625-6224
Agencies will issue violations with fines depending upon the gravity of the violation
and the past history.
d) The.County will be invited to any bond release inspection of the State Division of
Reclamation, Mining and Safety. The County inspector will have the opportunity to
demonstrate that any item of the permit has not been complied with and that bond
should not be released.
e) The County will have the opportunity to evaluate the performance of the Operator
with regard to the County bond and withhold portions of the bond if it is demonstrated
to the Operator that certain conditions of the permit have not been met. The Operator
acknowledges that the County has performance standards in place that could lead to
revocation of the Special Use Permit if continued violations of the permit occur over a
period of time.
(2) Special Use Permits may be granted for those uses with provisions that provide adequate
mitigation for the following:
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Pare 10
(A) A plan for site rehabilitation must be approved by the County Commissioners
before a permit for conditional or special use will be issued,
Response
The County Vegetation Manager has found the rehabilitation plan to be sufficient and
recommends security in the amount of $4,000.00.
(B) The County Commissioners may require security before a permit for special or
conditional use is issued, if required. The Applicant shall furnish evidence of a bank
commitment of credit, bond, certified check or other security deemed acceptable by the
County Commissioners in the amount calculated by the County Commissioners to secure
the execution of the site rehabilitation plan in workmanlike manner and in accordance
with the specifications and construction schedule established or approved by the County
Commissioners. Such commitments, bonds or check shall be payable to and held by the
County Commissioners,
Response
Security is recommended in the amount of $4,000.00.
Section 5.03.08 /Industrial Performance Standardsl
Pursuant to section 5.03.08 of the Zoning Resolution, all Industrial Operations in the County shall
comply with applicable County, State, and Federal regulations regulating water, air and noise
pollution and shall not be conducted in a manner constituting a public nuisance or hazard.
Operations shall be conducted in such a manner as to minimize heat, dust, smoke, vibration, glare
and odor and all other undesirable environmental effects beyond the boundaries of the property in
which such uses are located, in accord with the following standards set below.
As required by any extraction operation, all of the following Industrial Performance Standards shall
be considered conditions of approval for any Special Use Permit.
(1) Volume of sound generated shall comply with the standards set forth in the Colorado
Revised Statutes at the time any new application is made.
(2) Vibration generated: every use shall be so operated that the ground vibration inherently
and recurrently generated is not perceptible, without instruments, at any point of any
boundary line of the property on which the use is located
(3) Emissions of smoke and particulate matter: every use shall be operated so as to comply
with all Federal, State and County air quality laws, regulations and standards.
(4) Emission of heat, glare, radiation and fumes: every use shall be so operated that it does
not emit heat, glare, radiation or fumes which substantially interfere with the existing use of
adjoining property or which constitutes a public nuisance or hazard Flaring of gases,
aircraft warningsignals, reflective painting ofstorage tanks, or other such operations which
may be required by law as safety or air pollution control measures shall be exempted from this
provision.
(5) Storage area, salvage yard, sanitary landfill and mineral waste disposal areas:
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Page 11
(A) Storage of flammable or explosive solids or gases shall be in accordance with
accepted standards and laws and shall comply with the national, state and local fire codes
and written recommendations /comments from the appropriate local protection district
regarding compliance with the appropriate codes,
(B) At the discretion of the County Commissioners, all outdoor storage facilities may
be required to be enclosed by fence, landscaping or wall adequate to conceal such facilities
from adjacent property;
(C) No materials or wastes shall be deposited upon a property in such form or manner
that they may be transferred off theproperty by any reasonablyforeseeable natural causes
or forces;
(D) Storage of Heavy Equipment will only be allowed subject to (A) and (C) above and
the following standards:
1. The minimum lot size is five (5) acres and is not a platted subdivision.
2. The equipment storage area is notplaced any closer than 300ft. from any
existing residential dwelling.
3. A11 equipment storage will be enclosed in an area with screening at least
eight (8) feet in height and obscured from view at the same elevation or
lower. Screening may include berming, landscaping, sight obscuring
fencing or a combination of any of these methods.
4. Any repair and maintenance activity requiring the use of equipment that
will generate noise, odors or glare beyond the property boundaries will be
conducted within a building or outdoors during the hours of 8 a.m. to 6
p. m., Mon. Fri.
S. Loading and unloading of vehicles shall be conducted on private properly
and may not be conducted on any public right-of-way.
(E) Any storage area for uses not associated with natural resources, shall not exceed
ten (10) acres in size.
(F) Any lighting ofstorage area shall be pointed downward and inward to the property
center and shaded to prevent direct reflection on adjacent property.
(6) Water pollution: in a case in which potential hazards exist, it shall be necessary to install
safeguards designed to comply with the Regulations of the Environmental Protection Agency
before operation of the facilities may begin. All percolation tests or ground water resource
tests as may be required by local or State Health Officers must be met before operation of the
facilities may begin.
Section 9.03.05 !Periodic Review of SUP/
Pursuant to section 9.03.05 of the Zoning Resolution:
Any Special Use Permits may be made subject to a periodic review not less than every six (6)
months if required by the County Commissioners. The purpose of such review shall be to
determine compliance or noncompliance with any performance requirements associated with the
granting of the Special Use Permit. The County Commissioners shall indicate that such a review
is required and shall establish the time periods at the time of issuance of a Special Use Permit.
Such review shall be conducted in such manner and by such persons as the County
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Page 12
Commissioners deem appropriate to make the review effective and meaningful. Upon the
completion of each review, the Commissioners may determine that the permit operations are in
compliance and continue the permit, or determine the operations are not in compliance and either
suspend the permit or require the permittee to bring the operation into compliance by a certain
specified date. Such periodic review shall be limited to those performance requirements and
conditions imposed at the time of the original issuance of the Special Use Permit.
Response
Should the Board approve the SUP, Staff suggests the Applicant be required to present a yearly
report to the BOCC that demonstrates progress and adherence to the mining plan. This would occur
in December of each calendar year and would include copies of annual inspection or reports required
by other agencies including, but not limited to, the City of Rifle.
IX. RECOMMENDATION
Based on the aforementioned, Staff recommends the following findings can be made with adoption
of the recommended conditions of APPROVAL.
FINDINGS
1. That proper posting and public notice was provided as required for the meeting before the
Planning Commission.
2. That the meeting before the Planning Commission was extensive or complete, that all pertinent
facts, matters and issues were submitted and that all interested parties were heard at that meeting.
3. That the above stated and other reasons, the proposed Special Use Permit has been determined to
be in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of
the citizens of Garfield County.
4. That the application has adequately met the requirements of the Garfield County Zoning
Resolution of 1978, as amended.
1. That all representations of the Applicant, either in testimony or the submitted application
materials, shall be considered conditions of approval unless specifically altered by the Board of
County Commissioners.
2. Prior to activity occurring on the site, the Applicant shall provide a copy of the approved permits
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Page 13
from the following agencies and shall remain in effect for the life of this permit:
a. City of Rifle Watershed Permit;
b. DRMS 110 Permit;
c. Stormwater Management Plan and Discharge Permit.
3. The Shale Borrow Pit hours of operation will be 7:00 a.m. to 6:00 p.m., Monday through
Saturday.
4. Prior to activity on the site, security shall be provided consistent with recommendations of
County Vegetation and in accordance with the County Attorney's requirements.
5. All of the conditions are binding of the County permit and the State Division of Reclamation,
Mining and Safety (DRMS). DRMS can withhold the reclamation bond if the final reclamation
is not executed according to the plans.
6. If a bond is required by DRMS, County will be invited to any bond release inspection and will
have the opportunity to demonstrate that any item of the permit has not been complied with and
that bond should not be released.
The Operator acknowledges that the County has performance standards in place that could lead
to revocation of the Special Use Permit if continued violations of the permit occur over a period
of time.
8. The Applicant shall be required to submit a report annually, until such time as the release of the
reclamation bond by the County, of the borrow pit operation for staff review. Upon review of
any deficiencies pursuant to conditions of approval or other local, state, or federal permits, Staff
may forward the report to the County Commissioners for full review of the Special Use Permit.
Copies of annual reports required by and submitted to other agencies including, but not limited
to, the City of Rifle, will be attached to the annual report submitted to the County.
9. The County commits to notifying the operator of any compliance concern and allows an
inspection with site personnel and the designated County inspector prior to contacting any
agency.
10. The County can request a site inspection with one calendar day's notice to the Operator. Full
access to any part of the site will be granted. On request, all paperwork must be shown. The
County cannot request a large number of inspections that would interfere with normal operation
without cause.
11. All mining activities shall be required to comply with the following performance standards:
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Page 14
(1) Volume of sound generated shall comply with the standards set forth in the Colorado
Revised Statutes at the time any new application is made.
(2) Vibration generated: every use shall be so operated that the ground vibration
inherently and recurrently generated is not perceptible, without instruments, at any point of any
boundary line of the property on which the use is located.
(3) Emissions of smoke and particulate matter: every use shall be operated so as to
comply with all Federal, State and County air quality laws, regulations and standards.
(4) Emission of heat, glare, radiation and fumes: every use shall be so operated that it
does not emit heat, glare, radiation or fumes which substantially interfere with the existing use
of adjoining property or which constitutes a public nuisance or hazard. Flaring of gases,
aircraft warning signals, reflective painting of storage tanks, or other such operations which
may be required by law as safety or air pollution control measures shall be exempted from this
provision.
(5) Storage area, salvage yard, sanitary landfill and mineral waste disposal areas:
(A) Storage of flammable or explosive solids or gases shall be in accordance with
accepted standards and laws and shall comply with the national, state and local fire
codes and written recommendations / comments from the appropriate local protection
district regarding compliance with the appropriate codes;
(B) At the discretion of the County Commissioners, all outdoor storage facilities
may be required to be enclosed by fence, landscaping or wall adequate to conceal
such facilities from adjacent property;
(C) No materials or wastes shall be deposited upon a property in such form or
manner that they may be transferred off the property by any reasonably foreseeable
natural causes or forces;
(D) Storage of Heavy Equipment will only be allowed subject to (A) and (C)
above and the following standards:
1. The minimum lot size is five (5) acres and is not a platted
subdivision.
2. The equipment storage area is not placed any closer than 300 ft. from
any existing residential dwelling.
3. All equipment storage will be enclosed in an area with screening at
least eight (8) feet in height and obscured from view at the same
elevation or lower. Screening may include berming, landscaping,
sight obscuring fencing or a combination of any of these methods.
4. Any repair and maintenance activity requiring the use of equipment
that will generate noise, odors or glare beyond the property
boundaries will be conducted within a building or outdoors during the
hours of 8 a.m. to 6 p.m., Mon. -Fri.
5. Loading and unloading of vehicles shall be conducted on private
property and may not be conducted on any public right-of-way.
(E) Any storage area for uses not associated with natural resources, shall not
exceed ten (10) acres in size.
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Page 15
(F) Any lighting of storage area shall be pointed downward and inward to the
property center and shaded to prevent direct reflection on adjacent property.
(6) Water pollution: in a case in which potential hazards exist, it shall be necessary to
install safeguards designed to comply with the Regulations of the Environmental Protection
Agency before operation of the facilities may begin. All percolation tests or ground water
resource tests as may be required by local or State Health Officers must be met before
operation of the facilities may begin.
15
EXHIBIT
GARFIELD COUNTY /
Building & Planning Department e V
Review Agency Form
Date Sent: May 19, 2008
Comments Due: June 6, 2008
Name of application: Black Diamond Minerals, LLC -SUP
Sent to:
Garfield County requests your comment in review of this project. Please notify the
Planning Department in the event you are unable to respond by the deadline. This form
may be used for your response, or you may attach your own additional sheets as
necessary. Written comments may be mailed, e-mailed, or faxed to:
Garfield County Building & Planning
Staffs contact: Kathy Eastley
109 8" Street, Suite 301
Glenwood Springs, CO 81601
Fax: 970-384-3470
Phone: 970-945-8212
General Comments: Garfield County Road & Bridge Department has no objections to
this application with the following comments.
We will need to work with Black Diamond Minerals on a road plan for the use of Cr. 317
application, but will need to have the road plan in place prior to their drilling operation.
All vehicles hauling equipment and material for this project shall abide by Garfield
County's oversize/overweight system All vehicle requiring oversize/overweight permits
shall have a letter on file with Garfield County Road & Bridge Department from Black
Diamond Minerals stating these vehicles can obtain oversize/overweight permits under
and a pilot car in the rear of each vehicle.
Name of review agency: Garfield County Road and Bridge Dept
By: Jake B. Mall Date June 3, 2008
Revised 3/30/00
E
Kathy A. Eastley
From: Matt Sturgeon [msturgeon@dfleco.org]
Sent: Wednesday, May 21, 2008 3:02 PM
To: Kathy A. Eastley
Cc: Fred Jarman
Subject: Black Diamond Minerals SUP Request for Resource Extraction
Kathy,
Please require Black Diamond obtain a watershed permit from the City of Rifle prior to any activity occurring
under this SUP if awarded.
Also, the legal description for the application is quite broad and may cause confusion. It looks like the pit is
confined to the S1/2 of S26, T7S R94W.
Thanks for the opportunity to comment
Regards,
Matt Sturgeon, Assistant City Manager
City of Rifle
202 Railroad Ave
Rifle, CO 81650
970-625-6224
msturgeon@rifleco.org
5/21/2008
EXHIBIT
MEMORANDUM
To: Kathy Eastley
From: Steve Anthony
Re: Black Diamond Minerals SUP
Date: May 23, 2008
The Rehabiltitation Plan, that includes weed management and reseeding, is acceptable.
Staff recommends a revegetation security in the amount of $4000. There is a almost one acre of
disturbance, and the time frame will be long -tern (hence the higher rate of $4000 per acre).
■■NEM
0000'omRES0URCE
■■■■■
■■■■■ E N G I N E E R I N G I N C
J
Kathy Eastly June 5, 2008
Garfield County Building and Planning Department
108 Eighth Street, Suite 401
Glenwood Springs CO 81601
RE: Black Diamond Minerals, LLC — Special Use Permit Application Review
Dear Kathy:
At the request of Garfield County, Resource Engineering, Inc. (RESOURCE) has
reviewed the Special Use Permit Application submittal by Black Diamond Minerals, LLC
(BDM) for a shale borrow pit project located approximately 9 miles south of the City of
Rifle. The submittal includes a bound document entitled Garfield County Special Use
Permit Application Tepee Park Ranch Exploration, dated March, 2008. Our comments
are outlined below.
SUMMARY
The proposed Special Use Permit application appears to meet the technical criteria for
the Special Use general requirements in Section 5.03, the specific requirements in
Section 5.03.07, and the standards in Section 5.03.08 of the Garfield County Zoning
regulations.
SPECIAL USE GENERAL REQUIREMENTS
The general requirements for any special use permit include providing adequate water
and wastewater service and adequate road improvements and/or access for the
proposed use. There is no proposed water use or wastewater disposal for the project.
The project site will be accessed from private roads off of County Road 317/USFS Road
824. No road improvements are required for the shale borrow pit project. However,
road improvements will be undertaken for the gas exploration project on the property.
INDUSTRIAL OPERATIONS REQUIREMENTS
Section 5.03.07 of the County Zoning Regulation outlines additional specific criteria for
industrial operations. These criteria require that the applicant prepare and submit an
impact statement of the proposed use. The application presents a paragraph by
paragraph response to Section 5.03.07 which addresses impacts and mitigation
measures.
INDUSTRIAL PERFORMANCE STANDARDS
The submittal indicates that the project will comply with the Industrial Performance
Standards set forth in Section 5.03.08.
Consulting Engineers and Hydrologists
909 Colorado Avenue 0 Glenwood Springs, CO 81 601 0 (970) 945-6777 ■ Fax (970) 945-1137
Kathy Eastly
Page 2
OTHER
The proposed project is located within the City of
The BDM permit application was approved by Rifle
copy of the executed permit issued to BDM should
County Special Use Permit.
June 5, 2008
Rifle Watershed Protection District.
City Council on June 4, 2008. A
be required prior to issuance of any
Please call if you have any questions or need additional information.
Sincerely,
INC.
Michabl �/Eribri, P.E.
Water Py6source Engineer
MJE/mmm
885-65.0
"RESOURUL
.....
..... E N G I N T E R I N G I N C
BEFORE THE CITY COUNCIL OF THE CITY OF RIFLE, COLORADO ZEXHIBIT
CONCERNING THE APPLICATION FOR A WATERSHED DISTRICT PERMIT FOR A
SINGLE NATURAL GAS WELL PAD WITH MULTIPLE WELLS, ASSOCIATED
PRODUCTION FACILITIES, AND ROAD IMPROVEMENTS
FINDINGS OF FACT, CONCLUSIONS OF LAW AND APPROVAL OF WATERSHED
DISTRICT PERMIT NO. 1-08
BLACK DIAMOND MINERALS, LLC
TEEPEE PARK RANCH EXPLORATION PROJECT
BEAVER CREEK WATERSHED
I. BACKGROUND
1. In March 2008, Black Diamond Minerals, LLC ("Black Diamond" or the
"Applicant") applied to the City of Rifle (the "City") for a watershed district permit to construct
and operate a single natural gas well pad with multiple wells, associated production facilities, and
road improvements located in South half of Section 15, Township 6 South, Range 93 West, 6'
PM, Garfield County, Colorado (the "Facility"). The Facility is located within five (5) miles of
the City's Colorado River water intake structure within the City's Watershed District jurisdiction
and the application was submitted pursuant to City of Rifle Ordinance No. 22, Series of 1994,
codified in Article H ofChapter 13 of the Rifle Municipal Code ("RMC"). The proposed activities
include the construction and operation of a single well pad with multiple wells, associated pad
facilities and gas gathering pipelines, and access road improvements located within five (5) miles
of the City's Beaver Creek municipal water diversion and intake structure and within close
proximity of upper Beaver Creek.
2. For the purposes of this permit (the "Permit"), the application shall consist of the
watershed permit application entitled Teepee Park Ranch Exploration Project prepared by Black
Diamond Minerals and Tetra Tech Permit Application dated March 2008, supplemental materials
provided by Black Diamond on May 20, 2008 including Engineering Design Plans, Stormwater
Management Plan (SWMP), Spill Response Plan, all correspondence and materials submitted to
the City by the Applicant or its agents and representatives with this application, as well as all
representations, whether oral or written, made as part of the application, and the Erion Letter,
discussed below. These items shall be collectively referred to herein as the "Application."
3. Any and all other permits issued or to be issued by county, state and/or federal
agencies in relation to the construction and operation of the Facility are incorporated herein by this
reference.
4. Following his review of the application, Michael Erion, P.E. of Resource
I:13008V imts%iWR. 10(18)B 1a&DiemoedWocumevtsTermn.wpd -I-
City of Rifle, Colorado
Watershed District Permit No. 1-08
Black Diamond Minerals, LLC
Teepee Park Ranch Exploration Project
Beaver Creek Watershed
Engineering, Inc., Consulting Professional Engineer for the City, stated his findings in a letter
dated May 28, 2008, attached hereto as Exhibit A and incorporated herein by this reference (the
"Erion Letter"). The Erion Letter concluded that the proposed activities to be performed do not
present or create a clear or foreseeable risk of significant injury to the City's waterworks or
pollution to the City water supply so long as the Applicant adheres to the proposed mitigation
measures contained in the Application and the conditions stated in the Erion letter. Therefore, the
activities are classified as a Minor Impact under the RMC.
II. FINDINGS OF FACT
5. The proposed activities are within the defined boundaries of the City's Watershed
District as defined in RMC § 13-2-20, specifically within five (5) miles of the City's Beaver Creek
municipal water diversion and intake structure. The proposed activities include the construction
and operation of a single well pad and three wells, in addition to pad facilities, access roads, minor
gathering pipelines, and a shale borrow pit. Due to the nature of the project and proximity to
Beaver Creek, the proposed project is classified as "Minor Impact." Because of the potential for
the Applicant's activities to impact the City's Beaver Creek water, certain conditions must apply
to this Permit as set forth in the Erion Letter.
6. The Application filed by Black Diamond is complete.
Black Diamond has paid the application fee required under RMC § 13-2-110.
8. A duly noticed Public Hearing was held before the Rifle City Council (the
"Council") on June 4, 2008. At the hearing, testimony was presented by Jim Neu, the City
Attorney, and Michael Erion regarding the activities proposed by the Applicant and the
applicability of the City's Watershed District Ordinance. Mr. Neu explained to the Council that
its jurisdiction on this matter extended five (5) miles beyond the City's Beaver Creek intake point,
and that its authority was limited to the protection of the City's water quality and supply. Mr.
Erion explained the provisions of the Permit, and recommended issuance of the Permit subject to
the terms and conditions set forth in the Erion Letter, which classified the proposed activities as
a Minor Impact pursuant to RMC § 13-2-120(c). Mr. Erion testified regarding his knowledge of
the Project and his analysis of the Application, and the conditions stated in the Erion Letter.
Representatives of Black Diamond also provided testimony regarding the Application and the
proposed activities. Testimony was opened up for members of the public.
9. With the conditions stated in the Erion Letter in place, the Council finds that the
Project, if constructed and operated as proposed in the Application and pursuant to the conditions
stated in the Erion Letter, does not present or create a clear or foreseeable risk of significant injury
I:\1008 1m1,*iWR-10(1n.wpd -2-
City of Rifle, Colorado
Watershed District Permit No. 1-08
Black Diamond Minerals, LLC
Teepee Park Ranch Exploration Project
Beaver Creek Watershed
The Facility shall be subject to biannual inspections or more frequently by the City
and/or its consultants, as determined necessary by the City in its sole discretion.
Any and all costs and fees associated with such inspections shall be the sole
responsibility of the Applicant.
The Applicant shall post with the City a performance guarantee in a form approved
by the City Attorney in the minimum amount of $50,000.00 to ensure compliance
with the terms and conditions set forth herein and to allow the City to step in and
take corrective actions should the Applicant default on any such term or condition.
Said performance bond shall remain in effect until the completion of the Project and
complete reclamation of the Project. The performance bond shall not be released
without the express written consent and approval of the City that the required
period has expired.
The Applicant shall designate a contact person for City of Rifle Watershed Permit
activities.
In addition, all representations, whether oral or written, made by Black Diamond and/or its agents
as part of the application and public hearing process shall be conditions of approval of the Permit.
14. All conditions of approval contained within any permit issued to the Applicant by
any county, state and/or federal agency shall be deemed conditions of approval ofthis Permit. Any
violation of the conditions of any other such permit issued to the Applicant shall be deemed a
violation of this Permit subject to all of the remedies provided for herein.
15. A copy of this Permit shall be sent by certified mail, return receipt requested, to
Black Diamond.
16. Pursuant to Rifle Municipal Code § 13-2-110(7), Black Diamond shall reimburse
the City for all outside professional services, including but not limited to engineering, legal,
consulting, publication and copying fees associated with the review of the Application prior to the
issuance of this Permit.
Id200M i.(,Wi M\R-10(1 8)E11.aD d..,d -4-
17. This Permit shall not be effective until approved by the City and agreed to and by
Black Diamond.
Dated this day of , 2008.
CITY OF RIFLE, COLORADO
Mayor
ATTEST:
City Clerk
City of Rifle Watershed District Permit No. 1-08 accepted and agreed to this day
of .2008.
BLACK DIAMOND MINERALS, LLC
In
Title:
I.A2008ru...Ritax-10(1e)ai,ck a..,d —5—
STATE OF
DIVISION OF RECLAMATION, MINING AND SAFETY
Depanment of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: (303) 866-3567
FAX: (3031 832-8106
CONSTRUCTION MATERIALS
COLORADO
D i v is i o N or
RECLAMATION
MINING
SAFETY
Bill Riper. I,
LIMITED IMPACT (110) OPERATION Governor
Harris D. Sherman
RECLAMATION PERMIT APPLICATION FORM Executive Direrto,
Ronald W. Cattanv
Division Di(ecior
CEII CK ONE: There is a File Number Already Assigned to this Operation Natural Resource Trustee
Permit #, kf = _ (Please reference the file number currently assigned to this operation)
X New Application (Rule 1.4.5) ___ Amendment Application (Rude 1.10)
Conversion Application (Rule 1.11)
Permit # O --— (provide for Amendments and Conversions of existing permits)
The application for a Construction Materials Limited Impact (110) Operation Reclamation Permit contains three major parts: (1) the
application form; (2) Exhibits A -J, Exhibit L, Addendum 1, any sections of Exhibit 6.5 and Geotechnical Stability Exhibit, as required
by the Office, and outlined in Rules 6.1,6.2,6.3,6.5, and 1.6.2(1)(b);and (3)the application fee. When you submit your application, be
sure to include one (1) complete signed and notarized ORIGINAL and one (1) copy of the completed application form, two (2) copies
of Exhibits A -J, Exhibit L, Addendum 1, and appropriate sections of 6.5 (Geotechnical Stability Exhibit), as required, and a check for
the application fee described under (4) below. Exhibits should NOT he bound or inn 3 -ring binder: maps should be folded to 8 1!2" X
I P' or 8 112" X 14" size. To expedite processing, please provide the information in tire format and order described in this form
2.
GENERAL OPERATION INFORMATION
Type or print clearly, in the space provided, ALL information described below.
Black Diamond Minerals, LLC
Applicant/operator or company name (name to be used on permit). _
1.1 "I'ype of organization (corporation, partnership, etc.): Limited Liability Corporation
Operation panic (pit, mine or site name):
Tepee Park Ranch Shale Borrow Pit
3. Permitted acreage ( new or existing site):
3.1 Change in acreage (+ )
3.2 Total Acreage in Permit Area
4. Fees:
4.1 New Application:
Amendment Fee (C.R.S. 34-32.5-) -',4(10):
4.2 Conversion Fee (from i 10d to 110 $1,258.00 conversion fee (Rule 1. 11,2(2))
5.
Primary commoditic(s) to be mined:.__Shale and Siltstone Bedrock
_,_...... _...
5.1 Incidental commoditic(s) to be mined: 1. ' lbs: Tons
4. __..._ Ihs I.onsi57
5.2 Anticipated end use of primary commodilie(s) to be mined:
Anticipated end use of incidental commoditic(s) to be mined:
0.66 permitted acres
acres
0.66
acres
$1.258.00 application fee
$827.00 application fee
2. ! Ibsirons;vr 3. ..... ._lbs Tans?yr
Road surfacing material
. .............................. ... ..... -------
Not applicable
Office of Office of
Mined Land Reclamation Denver • Grand Iunelion • Durango Active and Inactive Mines
-2-
11. Correspondence Information:
APPLICANUOPERATOR (name, address, and phone of name to be used on permit)
Title:
Contact's Name:
Scott Hall
Title:
Company Name:
Black Diamond Minerals, LLC
Citv:
Streeo'P.O. Box:
1600 Stout Street, Suite 1350
P.O. Box:
City:
Denver
State:
Colorado
Zip Code:
Telephone Number:
( 303 �_ 973-3228
Fax Number;
303 - _ 346-4893
City:
PERMI'f-rTNG CONTACT
(if different from applicantloperator above)
Zip Code, _
Contact's Name:
Selina Kolar
Tide:
Company Name:
Tetra Tech, Inc
Street/P.O. Box:
City:
State:
Telephone Number:
Fax Number:
4900 Pearl East Circle, Suite 30OW
Boulder
Colorado
( 303 447-1823
( 303 447-1836
P.O. Box:
Iyxw
80202
Zip Code; 80301
INSPECTIONN CONTACT_
Contact's Name: Scott Hall
Title:
Company Name: Same as applicant
Street/P.O. Box:
P.O. Box:
Citv:
State:
_ Zip Code:
Telephone Number: ( 1
Fax Number: ( )
CC: STATE OR FEDERAL (LANDOWNER (if any)
Agency: Not Applicable
Street:
City:
State:
Zip Code, _
"Telephone Number: .L_----.__...-__) - ._...... __._....................
_(_(__ STATE ORPI;DIRAL LANDOWNER (if any)
Agency:
Street:
City:
State: ---- ....... - ......
Zip Code: ...._._..._._... — - --
"felepbone Number: t ----__.-- )---........-..------ --.----
----------- ...--- --.------------ _.._------ .. _ ....--_-. __...----._..
3-
7. Name of owner of the subsurface rights of affected land: Black Diamond Minerals, LLC
8. Name of owner of the surface of affected land: Black Diamond Minerals, LLC
9. Type of mining operation: X Surface Underground
10. Location information: The center of [lie area where the majority of mining will occur:
COUNTY: Garfield
In-situ
PRINCIPAL MERIDIAN (check one): 6th (Colorado) 10dh (New Mexico) Ute
SECTION (write number): S 25
TOWNSHIP (write number and check direction): 'r 7____ North X South
RANGE (write number and check direction): R 94 East X West
QUARTER SECTION (check one): NE NW SE X SW
QUARTTER QUAR'IIER SEC HON (check one): NE _ NW X SE SW
GENERAL DESCRIPTION: (the number of miles and direction from the nearest [own and the approximate elevation):
9400 feet in elevation; 9 miles south of Rifle
11. Primary Mine Entrance Location (report in either Latitude/Longitude OR UTM):
Latitude.•Loneitude:
Example: (N) 390 44' 12.98"
(W) 104° 59' 3.87"
Latitude (N): deg 39 min 24 _ sec (2 decimal places)
Longitude (W): deg 107 on 50 sec._ 111 . 17 (2 decimal places)
OR
Example: (N) 39.736910
(W) -104.98449-
Latitude (N) ._ _., - (5 decimal places)
Longitude(W)•__.---- ............... (5 decimal places)
OR
Unirersal_,Tram,ersc klctcator_(!,, -)
Example. 201?St,.3 E NAD27 Lone 13
43983,5 1.2 N
U'I'M Datum (specify NAD27, NAD83 or WGS 84) ....... Lone
Fasting
Northing
4-
l2. Primary future (Post -mining) land use (check one):
_ Cropland(CR) _ Pastureland(PL) General Agriculture(GA)
Rangeland(RL) X Forestry(FR) _ Wildlife Habitat(WL)
Residential(RS) -__ Recreation(RC) _ IndustriaVCommercial(IC)
_ Developed WaterResoruces(WR) ---- Solid WasteDisposal(WD)
13. Primary present land use (check one):
_ Cropland(CR) _ Pasturcland(PL) _ General Agriculture(GA)
Rangeland(RL) _X Forestry(FR) _ WildlifeHabitat(WL)
Residential(RS) _ Recreation(RC) _ industrial/Commercial(IC)
_ Developed Water Resources (WR) _ Mining (MN)
14. If this operation will use designated chemicals, or will result, or presently has acid mine drainage -you cannot use this application
form. You must submit either a 110d or 112d application form for Designated Mining Operations. In either case, you must list
any acidic or toxic -forming materials, exposed or disturbed as a result of the mining operation, and whether the operation will
result in or presently has acid mine drainage:
No acid producing materials are known to be present
15. Description of Amendment or Conversion:
If you are amending or converting an existing operation, provide a brief narrative describing the proposed change(s):
Not applicable
Maps & Exhibits:
Submit two (2) complete, unbound copies of the following application exhibits:
6.3.1
EXHIBIT A - Legal Description and Location Map
6.3.2
EXHIBIT B - Site Description
6.3.3
EXHIBITC - Mining Plan
6.3.4
EXHIBIT D - Reclamation Plan
6.3.5
EXHIBIT E - Maps, to include the location of any recorded easements
6.3.0
P,XHTBIT F - List of Other Permits and Licenses Required
6.3.7
EXHIBIT G - Source of Legal Right -to -Enter
6.3.8
EXHIBrr H - Municipalities Within a Two-mile Radius
6.3.9
EXHIBIT I - Proof of Filing with County Clerk
6.3.10
EXHIBIT J - Proof of Mailing Notices of Permit Application
6.3.12
EXHIBIT L - Permanent Man -Made Structures
1.6.2(1)(b)
ADDENDUM 1 - Notice Requirements (sample enclosed)
6.5
Geotechnical Stability Exhibit (as required)
5 -
Responsibilities as a Permittee:
l pon application approval and permit issuance, this application becomes a legally binding document. Therefore, there are a number of
important requirements which you, as a permittee, should fully understand. These requirements are listed below. Please read and initial
eaea=h requirement, in the space provided, to acknowledge that you understand your obligations. If you do not understand these
obligations then please contact this Office for a full explanation.
I . Your obligation to reclaim the site is not limited to the amount of the financial warranty. You assume legal liability
for all reasonable expenses which the Board or the Office may incur to reclaim the affected lands associated with your
mining operation in the event your permit is revoked and financial warranty is forfeited;
2. The Board may suspend or revoke this permit, or assess a civil penalty, upon a finding that the permittee violated the
terms or conditions of this permit, the Act, the Mineral Rules and Regulations, or that information contained in the
application or your permit misrepresent important material facts;
3. If your mining and reclamation operations affect areas beyond the boundaries of an approved permit boundary,
substantial civil penalties, to you as permittee can result;
4. Any modification to the approved mining and reclamation plan from those described in your approved application
requires you to submit a permit modification and obtain approval from the Board or Office;
5. It is your responsibility to notify the Office of any changes in your address or phone number;
G. Upon permit issuance and prior to beginning on-site mining activity, you must post a sign at the entrance of the urine
site, which shall be clearly visible from the access road, with the following information (Rule 3.1.12):
a. the name of the operator;
b. a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land
Reclamation Board; and,
C. the permit number.
7. The boundaries of the permit boundary area must be marked by monuments or other markers that are clearly visible
and adequate to delineate such boundaries prior to site disturbance;
8. It is a provision of this permit that the operations will be conducted in accordance with the terms and conditions listed
in your application, as well as with the provisions of the Act and the Mineral Rules and Regulations in effect at the time the
permit is issued.
9. Annually, on the anniversary date of permit issuance, von must submit an annual fee as specilied by Statute, and in,
annual report which includes ,t map de cribing the acreage affected and the acreage reclaimed to date t if there at changes
frornthe previous year}, any mojrnorin;: required by the Reclamation Plan to be submitted annually on !h -'amu, eraly datc
of the permit approval. Annual fees are for the; previous year a permit is held. For example, a perrnit .k uh the jnjnversary
date of July 1, 1995, the annual fec is for the period of July 1, 1994 through June 30, 1995. Failure to submit ,ouy annual
fee and report by the permit anniversary date may result in a civil penalty, revocation of your permit, and fort enure of pour
financial warranty. itis your responsibility, as the permittee, to continue to pay your annual fee to the Office until the (bard
releases you from your total reclamation responsibility.
10, For ioint venturelpartnership permittee: the signing representative is authorized to sign when docuntenl and a power of
attomey (provided by the parmer(s)) authorizing the signature of the representative is attached to this application.
6 -
Permit Condition
.A reportable spill is a spill of any toxic or hazardous substance (inctuding spills of petroleum products) within the
mined land permit area reportable to any Division of the Colorado Department of Public health and the Environment, the
National Response Center, the Colorado Emergency Planning Commission, any local Fmergency Planning Commission,
local Emergency Planning Committee, or the State Oil Inspector. 1 -he Mine Operator shall noifv the Division of
Reclamation, Mining and Safety (DRMS) ofa reportable spill within the ruined land permit area using the same tintehame
required by the penniC license. notice, statute, rule or regulation governing the reporting ofthe spilt to the other appropriate
agency. Notice ofa reportable spill shall be FAXed to: Minerals Program Supervisor, Division of Reclamatiom Mining and
Safety, FAX (303) 832-5106. The FAX shall include a call-back number ofa responsible company official for DRMS staff
to use as a contact.
Non i'O COm11ENTORSJ08JECTORS
It is likely there will be additions, changes, and deletion s to this document prior to final decision by the Office. Meretbre.. if you have
anp comments or concerns you must contact the applicant or the UOicu litior to the decision date so that you will know what change,
:nay tutee been !made to the application do, umenf
the Offike i, vwi ..';owed to cotvcuitr ormnents. unto -ss they a;t writer_ and pi:or to the encs of me �,w-:; :omnicut penod
You sheuia ,.;ntac: the applicant for the final date ul'thr p!ifltc eommem pen<ni.
If you have questions about the % red t_and Reclamastun kuaw and Office reviccv, and decision or appeals process. you uta contact the
Oflicv at (303) 866-3567.
7 -
Certification:
As an authorized representative of the applicant, I hereby certify that the operation described has met the minimum requirements of the
following terms and conditions:
I. All necessary approvals from local government have been applied for (Section 34-32.5-110(1)(a)( VIII).
2. To the best of my knowledge, all significant, valuable and permanent man-made structure(s) in existence at the time this
application is filed, and located within 200 feet of the proposed affected area have been identified in this application
(Section 34-32.5-115(4)(e), C.R.S.). (NOTE: For 110 operations, the affected area includes all lands delineated by the permit
boundary.)
3. No mining operation will be located on lands where such operations are prohibited by law (Section 34-32.5-115(4)(f),
C.R.S.),
4. As the applicant/operator, I do not have any mining/exploration operations in the State of Colorado currently in violationof
the provisions of the Colorado Land Reclamation Act for the Extraction of Construction Materials (Section 34-32.5-120, C.R.S.).
5. 1 understand that statements in the application are being made under penalty ofperjuryand that false statements made herein
are punishable as a Class I misdemeanor pursuant to Section 18-8-503, C.R.S. 1984.
Thisform has been approved by the Alined Land Reelamation Board pursuantto section 34-32.5-110,C.R.S, ofthe Colorado Land
Reclamation Act for the Extraction of Construction Materials. Any alteration or modification of this form shall result in voiding
any permit issued on the altered or modified form and subject the operator to cease and desist orders and civil penalties for
operating without a permit pursuant to section 34-32.5-123, C.R.S.
Signed and dated this day of
ApplicantlOperator
Signed: _
Title:
State of
Courr y of
) ss,
If Corporation Attest (Seal)
Signed:
Corporate Secretary or Equivalent
Town/CityiCoumy Clerk
The foregoing instrument was acknowledged before me this - day of'
by
as
Notary Public
My Commission expires:
SIGNATURES MUST BE IN III.UE INK
NOTICE OF FILING APPLICATION
FOR COLORADO MINED LAND RECLAMATION PERMIT
FOR CONSTRUCTION MATERIALS LIMITED IMPACT 010) OPERATION
NOTICE TO THE BOARD OP COUNTY COMMISSIONERS
Garfield COUNTY
Black Diamond Minerals, LLC (the "ApplicantiOperator") has applied for a Construction Materials Limited
Impact (l 10) Reclamation permit from the Colorado Mined Land Reclamation Board (the "Board") to conduct the extraction
of construction materials in Garfield County. The attached information is being provided to
notify you of the location and nature of the proposed operation. The entire application is on file with the Division of
Reclamation, Mining, and Safety (the "Division") and the local county clerk and recorder.
The applicant/operator bperator proposes to reclaim the affected land to .. forestry
_ use. Pursuant to
Section 34-32.5-116(4)(m), C.R.S., the Board may confer with the local Board of County Commissioners before approving
of the post -mining land use. Accordingly, the Board would appreciate your comments on the proposed operation. Please
note that, in order to preserve your right to shearing before the Board on this application, you must submit written comments
on the application within ten (10) days after the date of the applicant's newspaper publication.
If you would like to discuss the proposed post -mining land use, or any other issue regarding this application, please contact
the Division of Reclamation, Mining, and Safety, 1313 Sherman Street, Room 215, Denver, Colorado 80203,
(303) 866-3567.
NOTE I'0_A PPLICA?r_T(OPERATOR: You MI ST attach a copy oftheapplication form tothis notice, Ifthisisanoticeof
a change to a previa sly tiled application you must either attach a copy of the changes, or attach a complete and accurate
descnonon otthe change.
NOTICE OF FILING APPLICATION
FOR COLORADO MINED LAND RECLAMATION PERMIT
FOR CONSTRUCTION MATERIALS LIMITED IMPACT 1110) OPERATION
NOTICE TO THE BOARD OF SUPERVISORS
OF THE LOCAL CONSERVATION DISTRICT
Bookcliff DISTRICT
Black Diamond Minerals, LLC (the "Applicant/Operator") has applied for a Construction Materials Limited Impact
(110) Reclamation permit From the Colorado Mined Land Reclamation Board (the "Board") to conduct the extraction of
construction materials in Garfield County. The attached information is being provided to notify you
of the location and nature of the proposed operation. The entire application is on file with the Division of Reclamation,
Mining, and Safety (the "Division") and the local county clerk and recorder.
The applicant/operator proposes to reclaim the affected land to forestry use. Pursuant to
Section 34-32.5-116(4)(m), C.R.S., the Board may confer with the local Conservation Districts before approving of the
post -mining land use. Accordingly, the Board would appreciate your comments on the proposed operation. Please note that,
in order to preserve your right to a hearing before the Board on this application, you must submit written comments on the
application within ten (10) days after the date of the applicant's newspaper publication.
If you would like to discuss the proposed post -mining land use, or any other issue regarding this application, please contact
the Division of Reclamation, Mining, and Safety, 1313 Sherman Street, Room 215, Denver, Colorado 80203,
(303) 866-3567.
NOTE TO APPI_ACANIYOPERATOR: You must attach a copy of the application form to this notice. If this is a notice of
change to a previously filed application you must either attach a copy of the changes, or attach a complete and accurate
description of the change.
STANDARD FORM 21P) (7201D
P,,wrl1cJ by DOIIUSDA/DOT
P.L. 96497 aril Prdeul
Rcyi,mr Enrico .5.22.9.5 APPLICATION FOR TRANSPORTATION AND
UTILITY SYSTEMS AND FACILITIES
ON FEDERAL LANDS
NOTE: Before completing and filing do application, We applicant should completely review this package and schedule a
prcapplication meeting with representatives of the agency responsible for processing the applicaron. Each agency
may have specific and unique requirements to be met in preparing and processing the application. Many times, with
lite help of the agency representative, the application can be completed at the preapplica ion meeting.
1. Name and address of applicant (im hede til
Black Diamond Minerals, LLC
1600 Stout Street, Suite 1350
Denver, Colorado 80202
from
N/A
agent
EXHIBIT
FORM APPROVED
OMB NO, 1004-0189
Expires: November 30. 2008
FOR
-vv,,..,,, 303.973.3228 ext 223
N/A
4. As applicant
are you? fell" one)
5. Specify what application is for. (rherA mm)
a.
Individual
n. 0 New auth062ation
b.
✓ Corporation"
b. ❑ Renewing existing authoriralion No.
C.
Partnership/Association*
C. ❑ Amend existing authorization No.
d.
Stale Govemment'SateAgency
d. Assign existing authorization No.
C.
riLocal Government
e. Existing use for which no authorization has been received*
L
❑ Federal Agency
L Odor*
• /(checked, conrptere supplemental page
*I%elrerked provide delnils ander llon 7
6, If an individual, or partnership arc you a citizen(s) of the United States? n Yes n No
7. Project description/desrdbe in derail): (a) Type of system or facility, (e.g., canal, pipeline, road): (b) related structures and facilities: (e) physical specifications
(length, width, grading ele.); (d) term of years needed; (e time of year of use or operation; (1) Volume or amount of product to be transported; (g) duration and
timing of construction; and (h) temporary work areas ncedefor construction (Allarh arldilio)ml sheers Ifaddilimml space is nredrA.)
a. Black Diamond Minerals, LLC (BDhd) is submitting this application for commercial use of US Forest Service (USES) Road 824 for
exploratory oil and gas operations, minor improvements to USFS Road 824, and placement of a temporary surface pipeline across USFS
property.
BDM owns the surface rights and certain mineral rights across Tepee Park Ranch. Tire test for economically viable oil and gas resources will
consist of drilling wells on the eastern side of Tepee Park Ranch. Minor improvements to USFS Road 824 are needed to accommodate large
vehicles necessary for oil and gas operations, such as drilling rigs and trailers. Installation of a temporary, line from exploratory wells to a gas
gathering system will allow the wells to he tested to determine commerciality. The installation are temporary gas pipeline will minimize the
disturbance to the USES road should the project not be economically viable.
Is. There will be no other related structures or facilities associated with the oil and gas operations or road use and improvements on USFS
property.
Continued on Attached Pages
S. Attach a reap covering area and show location of project proposal See Figures 1 and 2
9. Sate or local government approval: ❑Attached ✓❑Applied for E] Not required City of Rifle Watershed Peewit
10. Nonreturnable application fee. ❑Attached Z Not required
11. Does project cross international boundary or affect international waterways? ❑ Yes ❑✓ No (/f -yes, " indicate on map)
saoment of your technical and financial capability to consuuc4
and terminate system for wdlich authorization is being requested.
BDM is a private oil and gas company with expertise and experienced staff capable of constructing, operating, maintaining, and terminating
exploratory oil and gas operations. BDM has equity commitments of 40 million dollars, sufficient for operations on Tepee Park Ranch.
(Continued on page 2 ) This form Is authorized for local reproduction.
I3o. Describe wherreasonable alternative routes and modes considerod,
No alternatives were considered for commercial use of USES Road 824 or minor road improvements. One alternative was considered for the
temporary gas service pipeline, which Included placement of permanent 16 inch buried pipeline across USFS property.
not selected?
See Attached Pages
c. Give explanation as to why it is necessay to cross Federal Lands
Tepee Pork Ranch is surrounded on all sides by federal land, primarily USPS, and a small portion on the north by Bureau of Land
Management (BLM); therefore, it is necessary to cross federal lands to access the site.
U. List authorizations and pending applications filed for similar projects which may provide information to the authorizing agency. (Specy, • inan1wr, dine, rode, or noon/
A copy of the existing Forest Road Easement between BUM and the USES for USPS Road 824 is provided as Attachment 4.
15. Provide statement of need for project, including the economic feasibility and items such as: (a) cost ofproposal /eonsiravion. operation, and nointrzaicel; (b)
estimated cost of next best altcmahve; and (c) expected public benefits.
Commercial use of USFS Road 824, minor improvements, and placement of a temporary surface pipeline across USFS property are necessary
to test for the economic viability of oil and gas resources from Tepee Park Ranch.
16. Describe probable effects on file population in the area, including the social and economic aspects, and die and lifestyles.
See Attached Pages
17. Describe likely environmental effects that the proposed project will have on: (a) air quality; (b) visual impact; (c) surface and ground water quality and quantity; (d)
the control or tmetuml change on any, stream or other body of water, (e) existing noise levels; and (D the surface of the land, Including vegetation, permafrost, soil,
and soil stability.
See Attached Pages
18. Describe the probable effects that the proposed project will hive on (a) populations or fish, plant]ife, wildlife, and marine life, including threatened and endangered
species; and (b) marine mammals, including hunting, capturing, collecting, orkilling these animnls.
See Attached Pages
alale wliculer as initiations material, as coined In this paragraph, will LC used, produced, transported or stored on or within the tight -of -way or any of the right-of-way
facilities, or ux in the cunsnuInction, opperation, maintenance or termination of the right-of-way or any of its facilities. "Hazardous iteral" means any substance,
wllulanl orcontaminanl that is listed as hazardous under the Comprehensive Environmental Response, Compensation, and Liability An of 1980, as amended, 42 U.S.C.
1601 at seyy and its regulations. The definition of hazardous substances under CERCLA includes any "huzardous waste" as defined in the Resource Conservation and
tecoery Ad of 1976 (RCRA), as amended, 42 U.S.C. 9601 et req and its regulations. The term hazardous materials also includes any nuclear or byproduct material
ms defined by the Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011 el seg, The Icon does not include pe6oleum• including crude oil or any fraction Ihereofihat
s not olhenvise specifically listed or designated as a hazardous substance under CERCLA Section 101(14), 42 U.S.C. 9601(14), nor does die tern Include natural gas.
No hazardous materials will be used, produced, transported or stored on or used in the construction, operation, maintenance or termination of
the project.
20. Name all the Depanment(sylAgency(ies) where this application is being filed.
This application is being Bled with the US Department of Agriculture, Forest Scrvico, White River National Forest.
1 BEREBY CERTIFY, That 1 am of legal age and authorized to do business in the Slate and that I have personally examined the information contained in the application and
believe that the information submitted is correct to the best of my knowledge.
Title 18, U,S.C. Section 1001 and Title 43 U.S.C. Section 1212, make it a crime for any person knowingly and willfully ho make to any department or agency of the United
States any false, fictitious, or fraudulent statements or representations as to any matter within iujurisdiction.
(Continued on page 3) .
(SF -299, page 21
APPLICATION FOR TRANSPORTATION AND UTILITY SYSTEMS
AND FACILITIESON FEDERAL LANDS
GENERAL INFORMATION
ALASKA NATIONAL INTERESTLANOS
This application will be used when applying for aright-nf-way, permit.
license, lease, or certificate for the use of Federal lands which lie within
conservation system units and National Recreation or Conservation Areas
as defined in the Alaska National Interest Lands Conservation Act.
Conservation system units include the National Park System, National
Wildlife Refuge System, National Wild and Scenic Rivers System,
National Trails System, National Wildemes's Preservation System, and
National Forest Monuments.
Transportation and utility systems and facility rases for which the
applicationmay be used are:
1. Canals, ditches, flumes, laterals, pipes, pipelines, tunnels, and other
systems for the Iransportalion of water.
2. Pipelines and other systems for the transportation of liquids other than
water, including oil, natural gas, synthetic liquid and gaseous fuels,
,and any refined product produced therefrom.
3. Pipelines, slurry and emulsion systems, and conveyor belts for
transportation of solid materials.
4. Systems forthe transmission and distribution of electric energy.
5. Systems for transmission or reception of radio, television, telephone,
telegraph, and other electronic signals, and other means of
communications.
6. Improved rights-of-way for snow machines. air cushion vehicles, and
all -terrain vehicles.
7. Roads, highways, railroads, tunnels, tramways, airports, landing
strips, docks. and other systems of general transportation.
This application must be filed simultaneously with each Federal
department or agency requiring authorization to establish and operate
your proposal.
In Alaska, the following agencies will help the applicant file an
application and identify the other agencies the applicant should contact
and possibly file with:
Department of Agriculture
Regional Forester, Forest Service (USFS)
Federal Office Building, P.O. Box 21628
Juneau, Alaska 99802-1628
Telephone: (907)586-7847(orn local Forest Service Office)
Department of rho Interior
Bureau of Indian Affairs (BfA)
Juneau Area Office
9109 Mendenhall Mall Road, Suite 5, Federal Building Annex
Juneau, Alaska 99802
Telephone: (907) 586-7177
Bureau of Land Management (BLM)
222 West 7111 Ave., Box 13
Anchorage, Alaska 99513-7599
Telephone: (907) 271.5477 fora lora/ BLhI O,nice)
National Park Service (NPS)
Alaska Regional Office, 240 West 5th Ave., Rm. 114
Anchorage. Alaska 99501
Telephone: (907) 644-3501
U.S. Fish &Wildlife Service (FWS)
Office of the Regional Director
1011 East Tudor Road
Anchorage, Alaska 99503
Telephone: (907)78(,3440
Note -Filings with any Interior agency ntay be filed with any ofrce noted
above or with the: Office of the Secretary of the Interior, Regional
Environmental Officer, Box 120, 1675 C Street, Anchorage, Alaska
99513.
see page
Depraiment of Transportation
Federal Aviation Administration
Alaska Region AAL -4.222 West 7th Ave., Box 14
Anchorage, Alaska 99513-7587
Telephone: (907) 271-5285
NOTE- The Department of Transportation has established the above
central filing point for agencies within that Department. Affected
agencies are: Federal Aviation Administration (FAA), Coast Guard
(USCG), Federal Highway Administration (FHWA), Federal Railroad
Administration (FRA).
OTHER THAN ALISRA NATIONALINTE•RE•STLANDS
Use of this form is not limited to National Interest Conservation Lands of
Alaska.
Individual departments/agencies may authorize the use of this form by
applicants for transportation and utility systems and facilities on other
Federal lands outside those areas described above.
Forproposals located outside of Alaska, applications will be filed at the
local agency office or at a location specified by the responsible Federal
agency.
SPECIFIC INSTRUCTIONS
(/renis not listed are self-explanatory)
Ilea
7 Attach preliminary site and facility construction plans. The
responsible agency will provide instructions whenever specific
plans are required.
8 Generally, the map must show the section(s), township(s), and
ranges within which die project is to be located. Show the
proposed location of the project on the map as accurately as
possible. Sonic agencies require detailed survey maps. The
responsible agency will provide additional instructions.
9, 10, and 12 - The responsible agency will provide additional
instructions.
13 Providing information on alternate routes and modes in as much
detail as possible, discussing why certain routes or modes were
rejected and why it is necessary to cross Federal lands will assist
the agency(ies) in processing your application and reaching a
final decision. Include only reasonable alternate routes and
modes as related to current technology and economics.
14 The responsible agency will provide instructions.
15 Generally, a simple statement of the purpose of the proposal will
be sufficient. However, major proposals (orated in critical or
sensitive areas may require a full analysis wi0t additional specific
information. The responsible agency will provide additional
instructions.
16 through 19 - Providing this information in as much detail as
possible will assist the Federal igency(ies) in processing the
application and reaching a decision. When completing these
items, you should use a sound judgment in fumishing relevant
information. For example, if the project is not near a stream or
olherbody of water, do not address this subject. The responsible
agency will provide additional instructions.
Application must be signed by the applicant or applicant's
authorized representative.
If additional space is needed to complete any item, please put the
information on a separate sheet of paper and identify it as
"Continuation of Item".
(SF -299, page
SUPPLEMENTAL
NOTE: The responsible agencylics) will provide additional instructions
CHECK APPROPRIATE
BLOCK
I - PRIVATE CORPORATIONS
ATTACHED
FILED -
a. Articles of Incorporation
❑
❑
b. Corporation Bylaws
❑
❑
C. A certification from the State showing the corporation is in good standing and is entitled to operate within the State.
❑
❑
d. Copy of resolution authorizing filing
❑
❑
c. The name and address of each shareholder owning 3 percent or more of the shares,tosether with the number and percentage of any
class of voting shares of the entity which such shareholder is authorized to vote and the name and address of cacti affiliate of die entity
together with, in the case of an affiliate controlled by Lite entity, the number of shares and the percentage of any class of voting stock of
that affiliate owned, directly orindirectly, by that entity, and in the case of an affiliate which controls that entity, the number of shares
mid the percentage of any class of voting stock of that entity owned, directly or indirectly, by the affiliate.
❑
❑
L If application is for an oil or gas pipeline, describe any related right-of-way or temporary use permit applications, and identify
applications
El
El
g If application is loran oil and gas pipeline, identify all Federal lands by agency impacted by proposal.
❑
❑
11 -PUBLIC CORPORATIONS
a Copy of law forming corporation
❑
❑
b Proof of organization
❑
❑
e- Copy of Bylaws
❑
❑
d, Copy of resolution authorizing filing
❑
❑
e. If application is for an oil or gas pipeline, provide information required by Item "I -f" and "I -g" above.
❑
El
III - PARTNERSHIP OR OTHER UNINCORPORATED ENTITY
a. Articles of association, irony
❑
❑
b. Ifonepartner is authorized to sign, resolution authorizing action is
❑
❑
c. Name and address of each participant, partner, association, or other
❑
❑
d. If application is foran oil or gas pipeline, provide information required by Item "bf' and "4g" above.
❑
❑
If the required information is already Bled with the agency processing this application and is current, check block entitled "Filed." Providc the file identification
information (e.g., number, dare, code, name). If not on file or current, attach the requested information.
(Continued on page 5)
(SF -299, page 4)
NOTICES
NOTE: This applies to the Department of the InieriorBureau of Land Management (BLM)
The Privacy Act of 1974 provides that you be furnished with the following information in connection with the
information provided by this application for an authorization.
AUTHORITY: 16 U.S.C. 310 and 5 U.S.C. 301.
PRINCIPAL PURPOSE: The primary uses of the records are to facilitate the (I) processing of claims or
applications; (2) recordation of adjudicative actions: and (3) indexing of documentation in case files supporting
administrative actions.
ROUTINE USES: BLM and the Department of the Interior (DOI) may disclose your information on this form: (1) to
appropriate Federal agencies when concurrence or supporting information is required prior to granting or acquiring a
right or interest in lands or resources; (2) to members or the public who have n need for the information that is
maintained by BLM for public record; (3) to the U.S. Department of Justice, court, or other adjudicative body when
DOI determines the information is necessary and relevant to litigation; (4) to appropriate Federal, State, local, or
foreign agencies responsible for investigating, prosecuting violation, enforcing, or implementing this statute,
regulation, or order; and (5) to a congressional office when you request the assistance of the Member of Congress in
writing.
EFFECT OF NOT PROVIDING THE INFORMATION: Disclosing this information is necessary to receive or
maintain a benefit. Not disclosing it may result in rejecting the application.
The Paperwork Reduction Act of 1995 requires us to inform you that:
The Federal agencies collect this information from applicants requesting right-of-way, permit, license, lease, or
certifications for the use of Federal Lands.
Federal agencies use this information to evaluate your proposal.
No Federal agency may request or sponsor and you are not required to respond to a request for information which
does not contain a currently valid OMB Control Number.
BURDEN HOURS STATEMENT: The public burden for this form is estimated at 25 hours per response including
the time for reviewing instructions, gathering and maintaining data, and completing and reviewing the form. Direct
comments regarding the burden estimate or any other aspect of this form to: U.S. Department of the Interior, Bureau
of Land Management (1004-0189), Bureau hiformation Collection Clearance Officer (WO -630) 1849 C Street,
N.W., Mail Stop 401 LS, Washington, D.C. 20240.
A reproducible copy of this form may be obtained from the Bureau of Land Management, Land and Realty Group,
1620 L Street, N.W., Rm. 1000 LS, Washington, D.C. 20036.
(SF — 299, page 5)
Continuation of Items
7. c. The physical specifications of the road improvements to USFS Road 824 are provided in
Attachment 1. Approximately 1.07 acres will be disturbed for the minor improvements.
However, the majority of the disturbance will occur in the existing road bed; therefore, there will
only be 0.66 acre of new disturbance on USFS property. Additional improvements to USFS
Road 824 will be made pending the results of a geotechnical study conducted when conditions
allow (Attachment 2). This study will include recommendations for subgrade preparation and
thickness, and geologic landslide conditions. These new improvements are not expected to cause
any disturbance beyond the 0.66 acre.
A temporary pipeline for gas sales will be placed within the boundary of the existing USFS Road
824 and will extend for 1.37 miles from the southern boundary of Section 25 to the northern
boundary of the USFS property in Section 24, Township (T) 7 North, Range (R) 94 East. The
pipeline will be a steel line with an outside diameter of 4.5 inches and an internal yield strength
of 10,000 pounds per square inch (psi) or greater. The pipeline will be welded in sections and
dragged along the road using a "pipelayer" tractor.
d. It is anticipated that commercial use of the road for exploratory purposes will continue for up to
2 years. The temporary pipeline will be in use from fall 2008 through fall 2009. Once the
economic viability of the wells drilled in Tepee Park Ranch has been determined, the temporary
line will be dismantled and moved onto Tepee Park Ranch where it will be reused.
e. Commercial use of USFS Road 824 for exploratory oil and gas operations on Tepee Park Ranch
will begin in June 2008 and will continue year-round for up to two years.
f. The volume and amount of traffic associated with the commercial use of USFS Road 824 is
provided in Attachment 3.
g. It is estimated that construction of the minor road improvements to USFS Road 824 will take
three weeks. Construction is proposed to begin in June 2008. Placement of the temporary
pipeline is also estimated to take three weeks and will begin in the summer of 2008.
h. No temporary work areas will be needed for either road improvements or placement of the
temporary pipeline.
13. b. As a private in -holding of the White River National Forest, the only access to Tepee Park Ranch
is from Garfield County Road (CR) 317 (Beaver Creek Road), which turns into USFS Road 824.
Therefore, no alternatives were considered for access to the site for commercial use.
Additionally, no alternatives for road improvements were considered. The road improvements
selected involved the least amount of resources and the least amount of disturbance needed for
this exploratory phase of development.
The alternative to bury a 16 inch permanent pipeline was not selected as part of exploratory
development in order to reduce the amount of disturbance to USFS property. Upon determination
of economic viability of the wells, a permanent gas gathering pipeline will be installed.
16. The effects on the population in the area from the commercial use of USFS Road 824, minor road
improvements, and placement of a temporary surface pipeline across public land are expected to be
minimal, and will be related primarily to increased traffic. No other social or economic aspects will
be affected, including rural lifestyles.
USFS Road 824 is used by visitors of the White River National Forest and private landowners in the
area. Visitors use the road to access a trailhead, access public land during hunting season, and for
snowmobiling in the winter. There are two private landowners that use this road to access their
property; however, one of these properties was recently sold to an oil and gas company. The
volume of traffic on the road ranges from 5 vehicles to 34 vehicles per week (Attachment 3). BDM
has committed to a Traffic Control Program to minimize impacts to users of USFS Road 824.
Details of the Traffic Control Program are provided below.
The objective of the proposed traffic control program for USFS Road 824 is to ensure safe, two-way
travel during natural gas exploration on Tepee Park Ranch.
USFS Road 824 will be used to transport equipment required to explore for natural gas on privately
owned Tepee Park Ranch. This area has not been proven to contain natural gas in commercial
quantities and therefore the existing road, with minor improvements, will be used. The existing road
does not allow for uncontrolled two-way traffic as the road is only wide enough for one vehicle and
very few turnouts exist. In order to ensure safe, two-way traffic during movements of large vehicles
and/or high volume of vehicles required for the natural gas exploration, traffic controls will be
required. Upon determination of commercial natural gas development, this road will be upgraded to
accommodate two-way traffic without the need for traffic control points.
During the times in which vehicles specified below or during times in which the specific activities
are being performed, traffic control personnel will be placed at the three control points identified on
Figure 2. Traffic control points will be established at the north entrance to USFS property on USFS
Road 824, at the road accessing private property (Bauer Turnoff), and at the USFS trailhead. Traffic
control personnel will communicate using walkie-talkies. Only one-way traffic will be allowed at
any given time. Those parties entering USFS Road 824 from the Bauer Tumoff' will be allowed to
drive in their desired direction only when the traffic flow direction allows. Pilot cars will not be
used, as traffic flow direction will be controlled by the three traffic control personnel stationed at the
above described points.
Traffic controls will be in place whenever the following large vehicle types are in use:
• Tractor/Lowboy Trailer (drilling rig moves)
■ Tractor/Flatbed Trailer (drilling rig moves, pipe and equipment moves)
• Tractor/Trailer-Cement Trucks
• Tractor/Trailer-Pump Trucks
• Tractor/Trailer-Sand Trucks
• Tractor/Trailer-Water Tanks
In addition to instituting traffic controls for the equipment moves listed above, there will be periods
of specific activity in which traffic controls will be in place, independent of the type of vehicle in
use:
■ Equipment moves for road and well pad construction (includes motor graders, dozers and
belly dump trucks)
■ Installation of the temporary pipeline (includes pipelayer tractor and welding trucks)
■ Construction of minor road improvements
Traffic controls will be in place during the hours in which these types of vehicles or activities are
in operation. Traffic controls will not be required once the drilling and completion operations are
complete. During the operations phase, no traffic controls will be required as the only traffic will
be periodic use by small vehicles.
17. a. Air quality is not likely to be affected by commercial use of USFS Road 824, minor road
improvements, or placement of a temporary pipeline. Emissions of smoke and particulate matter
from these activities are anticipated to be minimal. All project components will comply with
Federal, State, and County air quality laws, regulations and standards. No State of Colorado Air
Pollution Emissions Notice (APEN) will be needed for the project, as it is anticipated to generate
less than 2 tons per year of particulate matter with an aerodynamic diameter of ten microns or
less (PM,o). The State of Colorado exempts sources of air pollutants if they emit less than 2 tons
per year of a criteria pollutant and are in an attainment area. All Colorado communities are
currently in attainment of all National Ambient Air Quality Standards (NAAQS), with the
exception of the Front Range ozone control area.
b. No visual impacts from the project are anticipated. The project will occur in a remote area and
the topography of the site precludes activities from being seen from any inhabited adjacent
property.
c. Potential impacts to surface waters include erosion and sedimentation of Beaver Creek. Surface
waters will be most susceptible to these impacts during construction of minor road
improvements. However, road improvements will be very minor (0.66 acre) and Best
Management Practices (BMPs) will be used to minimize any impacts. Surface waters could also
be impacted by the commercial use of USFS Road 824. All efforts will be made by BDM to
minimize traffic on the road and prevent impacts to Beaver Creek.
No impacts to surface water quantity, or ground water quality or quantity are anticipated.
d. There will be no control or structural change on any stream or other body of water.
e. The project will be located in a rural, unpopulated area with few potential noise sources.
Increased traffic on USFS Road 824 and construction of minor road improvements will result in
increased noise levels in the area. Increased noise levels from construction will be short-term (3
weeks), while noise from traffic will continue throughout the year. However, the topography of
the site would tend to disperse noise generated by these activities. Additionally, as there are no
inhabited residences in the vicinity of the project, the only sensitive noise receptors will include
the occasional recreationist and hunters; both of whom will likely be contributing to the noise
levels by accessing the site with vehicles.
The only undisturbed land surface that will be impacted by the project will occur to the existing
shoulder of USFS Road 824 where minor road improvements are needed. The area of land
disturbance will be minimal (0.66 acre), but permanent, as this area is converted to road bed. No
land disturbance is anticipated from the commercial use of the road or from the placement of a
temporary surface pipeline.
18. a. Forests in the project area are dominated by aspen (Populus tremuloides) and conifers such as
Engelmann spruce (Picea engelmanii), Douglas fir (Pseudotsuga menziesit), and lodgepole pine
(Pinus contorta). Forested communities are broken up by patches of high elevation meadows.
Understory species include snowberry (Symphoricarpos spp.), serviceberry (Amelanchier
alnifolia), and Gambel oak (Quercus gambelii). Riparian areas and wetlands on the property are
dominated by willows (Salix spp.).
Effects to vegetation from the project will be limited to the loss of vegetation from minor road
improvements. The total acres of disturbance resulting from these activities would be 0.66
permanent acre. Overall, impacts to vegetation from the project are expected to be minimal.
The project area provides habitats for various species of big game, small game, and non -game
mammals and birds that are found in mid- to high -elevation habitats of west -central Colorado.
Impacts to wildlife species inhabiting the project area are expected to be minimal. Traffic and
increased human presence may cause wildlife to avoid the area or find alternative migration
routes. However, because the project area is surrounded by undeveloped USFS property, there is
ample space for any wildlife that would be displaced. BDM would make all attempts to prevent
vehicle collisions with wildlife including minimizing traffic on USFS Road 824 and
implementing speed control.
According to the species list from the US Fish and Wildlife Service (USFWS) Mountain -Prairie
Region (USFWS 2008), four federally listed, proposed, or candidate plant species may occur
within Garfield County; Parachute beardtongue (Penstemon debilis), Uinta Basin hookless cactus
(Sclerocactus glaucus), Debeque phacelia (Phacelia submutica), and Ute ladies' tresses orchid
(Spiranthes diluvialis). However, no suitable habitats for these species occur in the project area.
According to the species list from the US Fish and Wildlife Service (USFWS) Mountain -Prairie
Region (USFWS 2008), seven federally listed, proposed, or candidate animal species may occur
within Garfield County; however, only one of them, Canada lynx (Lynx canadensis), has the
potential to occur in the project area. Approximately 0.5 mile of lynx denning habitat occurs
adjacent to USFS Road 824, the remainder of the project area is considered non -habitat. The
minor road improvements would not occur in denning habitat; therefore, the only potential
impact would be from increase traffic associated with commercial use of the road.
One USFS sensitive species and State of Colorado species of special concern, the Colorado
River cutthroat trout (Oncorhynchus clarki pleuriticus), has been identified in Beaver Creek,
adjacent to USFS Road 824. No impacts to this species are anticipated from the project due to
the relatively small area of disturbance (0.66 acres) and BWs implemented by BDM, including
those to minimize traffic on USFS Road 824.
b. No marine life would be affected by the project.
Vol :wm�u�rir,��� ®ire
Recep[smtl: 938861
N
N:2a:19 PII Jean elberlw
1 I a Roc Fae;f25.E0 Cw Fea.1P@8.80 —FIR- c"TY co
SPECIAL. WARRANTY DEED
THIS DEED, made this 6.T6 day of _�%%a,e.vrn� PAF/. 20 O'j between Teepee Park
Raveb,LLC,a ColoradafmHed LbbflkyConpasy, ofthe County ofJeHRranq StateofCobrade,
as Grantor, and Black Dimmed Minerals, LLC, a Delaware 13mited Liability Company, whose
registered address is 1606 Stoat St., Suite 1350, Denver, CO 50302, of the City & Coonty of Deaver,
State of Colorado, as Grantee:
WITTIESSETH, that the Grantor, krand in Consideration ofthe smn of TEN DOLLARS ($ 10.00), and other
good and valuable consideration, The receipt and sufficiency ofwhich is hereby adB ledged, has grinned, bargained,
sold and conveyed, aad by these presentsdoes gent, bargain, selk..ay and confirm,®ty tha Grance, its sucewsoas
and assigns forever, all the real property together with improvements, if my, sihMha, lying ad being m the Csanly of
Garfield aad State of Colorado desert ed. follows:
That real property identified in Exhibit A attached Jacinto and incorporated herein by
reference,exclodingthetefrommineral rightsreserved hyUnhmOil CompanyofCalifomia,
its successors and assigrsa, sat forth in that Special Warranty Used recorded Aprils, 1994,
Book 898, Page 402, Garield County, Colorado records.
Y TOGETHER with all and singular the hereditaments and appurtenances thereto belonging, Or in any wise
appertaining and the reversion and reversions, remainder and remainders, rests, issues and profits thaw( and all the
estate, right, title, infest, claim and demand whatsoever of the grantor, either in kw or equity, of in and to the above
QO bargained premises, with the hereditaments ed appurteranrces.
rTO HAVE AND TO HOLD the said pemisw above bargained and dmeribed with die apprmrnances,unto
O the Grantee, its successors and assigns forever. And the Greater, for ftscl4 its successors and assigns, dee, covenant,
grant bargafn, and agee to and with the Grantee, its sues err; and assign, that at tha fdoe ofthe ensealing and delivery
of these presorts, it is wit wind Ortho orreries shove conveyed, has goad, sore, perfect' absolnc and indefeasible
estate ofbrhmitance, in law, in fee sbnpk, and bas good right full power and lawfid authority to gran, bargain, sell and
convey the same in manner and form as aforessid, and that the sent, am fine and clear five, all former and other grants,
bargains, sales, lieu, taxes, assesurants, eacomWmaes and restrictions ofwhatevakind oronere sera, except those
o appeari g.frecord.
�+
The Grantor shall warren the title against all persons claiming under said Grantor.
F H
Cmc D WITNESS WHEREOF, the Grantor has executed Otis decd on the date set forh above.
0
A 00 TeepeePask Raeek,L1.C:
U
_mac+�1
By: Mr. Norman A. rpenCra ter
SfATEOrF��'C_'iCO,S ) Manager and Sole Member
Ems+ Cwatyof
The foregoing instrument was acknowledged before me this 4V day of
200L by Mr. Norman A Carpenla, an bebalfofTeepm Park Reach,LI.C, as Manager erd Sok Member thereof.
Whom myhand and official at:
My C=MM DFOM ALLEN
C4. tWaay 5lero of Taxers
( payecrxaivim Erevan
May ��?(Itl
q
n tin ma 9
�&II�1F�16�PUIPIi1d�1,4�M1'686SMiCNWIhRIId MINI
Receprtma: yi8a6t an aa�
;f/0]a]Ber eta:9a0 roe FeeplOBa N pRFlov CwrtY W - —
SPECIAL WARRANTY DEED
THIS DEED, made this 6.TtL day of✓200Z bdvreen Teepee Park
Rewash, LW, a Colorado Kited Lbbi6ty CMP=Y, oftho Cwaatyofdetfer E, State OfColondq
as Garroter, and Week Daamoad M'aneals, LLC, a Delaware Umwkd Liability Cetapaoy, whose
registered addasss is i6a toad St., Sdte L450,De , C0 SM4 of dw CAy & Coaay otDrarer,
State of Colorado, as Grantee:
rarraraaa-re.,Nxa., O.amre_ anandmransidaadonofdesmo of'fEdi DOLLARS(510.00), sndothar
and aaigns finever, all the real FrePVrtY WAVIb" with XWO Veaaab, at WY,samr4 WAR an vcmgmore s;oaary or
Garfield mad State of Colorado described as follows
That real property. identified in Exhibit A attached hecto aed mcoWWed herein by
refererw,excludiagihecfromminmadAghtsresarver!byUmooOilCOngxmyofCalifotnia,
its recreant; and assign re; ad Rash in that Special WamwtyDcod recorded April 8, 1994,
1_ Eook $99, Pogo 402, Garfield County, Colorado retards.
vTOGETHER with a0 seal singular the haedilamame ad appmLLvmmes theeda beloogieg, or is any wise
rl appeeeiniog, real Mememionand revisions, musainderardreminders, rents, issuee wall prefitsthereof sed all the
t`
estate, right, title, interest, claim mad denied whakoeveroftheweator,eitherinlawaeWiy, u4 mmal to the above
p bargained peeress, with tbaheredhsmenrs red giprttananeea
rTOHAVSAND TO HOLDft saidparniaa above battered mal described with fle, tmaoom, on,
O dufGmstee.itsaureaorrad anions Coreva. And the Otntor, ferteel0 its suaessers red assips, does covasnt,
ofdaum preserve, it is w it seined ofOmpeoises aboveconeyed, has good,sma, Perfect, absolute real iadefeavible
e ofNvetan inlaw,ofeeaMkvmdbmgooddght,foOPowereadtawfdamhositymgram,bagpim m0ad
convey she same in owner red farm as aforesaid, and Wd the same ae five and deer iters all fonoe and othi pains,
bargamv,saks, litm,tmxea,awes®omb,aadrestrirdwsofwbdcvert®daroeaaesoewr.erceptuaoe
c appearing of mord.
rod Thefhadorshall waoot The tide against allpersoas claimingemdumid(kanmr.
6 No INWFfMSSWHERROF,th, Gradorbm executed this dead at the date sal Oath above.
•N
O
y m Teepee Park Rsaek, LLC:
.a n W //ryL••^.>-.✓CZ 1. L-fea.6a/
w Ilya W.Noraaa A. arpenter
q SFATEOFF-V'eX&S ) Manager and Sole Mwber
H Coaatytd y ' yoy ) ase. ,1 `
The foregoing mam®ant was acknowledged befbm me this L 0 r_ day of��Q%Eh V er
2001, by Mr. Norman A Carteret, or behalf of Teepee Park Ready LLC, as Maow and Sale Member dwaeof.
Wines my had and official mel: My Con® c 1 Ngo ltry�ublic
DOPA ALLEN
Notal Punts. Sine �'aza°
V'V20,2011 9
n 4n me 0
10KF�1JVAPlldgdl1�1�4,I�M{h14'6N�Lhh W Will
jk a Ulm TaBa6t
I"W"21B'/ W 22:ta N Jean m er[
2 of 3 acro Fee:M.50 N Fee: 199J.0a tlKFIao o"n W Rillium A
The South half (312) of the South half(S12) of Section Fitem (15a Township Sev®(7) South, RangeNinety
Four (94) West of the Sixth Principal Meridian
PartofDr"No. 3
PartofD akeNo.4
PanofDrakeNo.5
Pan of Alberta No. I
Pan of Alberta No. 2
Part of Alberta No. 3
Pert of Alberta No.4
Part of Albertallo.5
PartofP-C. Jmiar No. 1
Part of P.C. Junior No.2
Part of P.C. Junior No. 3
Pan of Virginia No. I
Alice
Alice No. 1
AliceNo.2
AliceNo.3
Little Maud No. 1
Little Maud No. 3
Unto Maud No. 5
Little Maud No. 7
Little Maud No.9
Link Maud No. 71
Little Maud No. 13
and Little Maud No. 15
Uil Shale Placer Mining Claim designated so Survey No. 20096, embracing a portion of Sections Tventy-four and
Twenty-five and the msurveyed portion of Township Seven South of Range Nmety-four West of the Sixth
Principal Meridian, as described in United States Pmtm Feemded December 17, 1932 in Book 164 at Page 496.
TOGITIWR WITN all that real properly stoma, lying and being in Garftekl County, Colmado consisting of the
following Plxc Mining Claim, to wit:
Parcel9
Mt Meson No. i
Mt. Mature No. 2
Mt. Mamm No. 3
Mt Manmh No. 4
Mt. Marvin, No. 5
Mt Mamm No. 6
Mt. Manan No. S
Mt. Mamm No.9
As described in United States Patent No. 1051431 recorded December 16,M.
Reception No. It 1666 of the Garfield Caonty Rccmds.
Pared B:
ML Mrsom No. 10
Mt. Mamm No. 11
As described in United States Patein No. 1051425 recorded December 16, 19:
Reception No. 111667 of the Garfield County Records.
2a x 1s4 = a cn
�IYt4'L1�14WMP1I11�81RIhI�Nh'�iG{Yf9�01W 41eB�Rl��V IIYI
R tleM. ]38881
ML MC: av '+ Fuays�fs m� -t- Rieee�w sw�f¢o caxrr CO
ML Mamm No. 12
Mt Memm No, 13
Mt Mamm No. 14
Mt MammNo. 15
As desm'bed in United Slags Paterallo. 1119490 recorded May 21,1945 in Baok209 at Page 447 m Reception
No. 154101 of the Garfield County Records.
NOTE: Parcel A above is now lmowa as:
Tract 42 in Sections 5, 6, 7 and S, Township 8 South,Range 93 West of the Sbdh Principal Meridian, Garfield
un
Coty, Colorado, and Tract 65 in Section 30 and 31, Township 7 Smith, Range 93 West ofthe Sixth Principal
Meridian, Garfield County, Colorado, according to the re-survuy thereof.