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Macy Ann No. 20 Sec. 35: t.ots l, 2, 3, and 4
(S 1/2 S 1/21
Mary Ann No. 21 Sec .. 34: Lots l, 2, 3, and 4
(S 1/2 S l/21
Mary Ann No. 22 Sec. 34: N 1/2 s 1/2
Mary Ann No. 23 sec. 34: S 1/2 N 1/2
Mary Ann No. 24 sec. 34: N l/2 N 1/2
Macy Ann No. 25 sec. 27: s 1/2 s 1/2
Mary Ann No. 26 Sec. 27: N 1/2 S 1/2
Mary Ann No. 27 sec. 27: s 1/2 N 1/2
Mary Ann No. 28 sec. 27: N 1/2 N 1/2
Mary Ann No. 29 sec. 22: s 1/2 s 1/2
Mary Ann NO. 30 Sec. 22: Lots 3, 4, 5, and 6
( N 1/ 2 S 1/21
Mary Ann No. 31 Sec. 22: Lot 2, S l/2 NW l/4,
SE 1/4 NE 1/ 4
(S l/2 N 1/21
Mary Ann No. 32 Sec. 22: Lot 1, N 1/2 ~w l/ 4'
NE 1/4 NE 1/4
(N l/2 N 1/21
M.ary Ann No. 33 Sec. 28: N 1/2 N 1/2
Macy Ann No. 34 Sec. 28: S 1/2 N 1/2
Mary Ann No. 35 Sec. 28: Nl/251/2
Mary Ann NO. 36 Sec. 28: s 1/2 s 1/2
Ma-cy Ann 'No. 37 Sec. 33: Nl/2Nl/2
Mary Ann No. 38 Sec. 33: Sl/2Nl/2
Mary Ann No. 39 sec. 33: N 1/2 S l/2
M.ary Ann NO. 40 sec. 33: s 1/2 s 1/2
All in Township 4 South, Range 96 ~est of the Sixth P.M., in
Garfield county, Colorado.
2. Identity of Claimowner
Onion Oil company of California
3. Issuance of ~in~l Cer~ificate
a. Patent Aoolication
C-09072
Filed: Auqust ll, 1954
A~plicanc: Union Oil Company of Califocnia
o. Final cectificate
Is.sued: March JO, 1978
Recorded: August 16, 1978 at Book 514, ?age 201,
Reception Mo. 287727, ~ecords of Garfield Coun~y,
Colorado.
(iii)
"I••
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SCHEDULE l-A39
Unocal Parcel No. 7647
(Book: 698 "' Page: 589
Recording Date: November I 0, I 986
Grantor: ·united States of America
Grantee: l Jn inn Oil CompaJJy of California)
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All of the following described mining claim or premises situate, lying and being in the County of
Garfield and State of Colorado, to-wit:
Madge No. 1 Placer Mining Claim,
Madge No. 2 Placer Mining Claim,
Madge No. 3 Placer Mining Claim,
Madge No. 4 Placer Mining Claim,
Florence No. l Placer Mining Claim,
Florence No. 2 Placer Mining Claim,
Florence No. 3 Placer Mining Claim,
Florence No. 4 Placer Mining Claim,
Florence No. 5 Placer Mining Claim,
Florence No. 6 Placer Mining Claim,
Florence No. 7 Placer Mining Claim,
Florence No. 8 Placer Mining Claim,
Fay No. l Placer Mining Claim,
Fay No. 2 Placer Mining Claim,
Fay No. 3 Placer Mining Claim,
Fay No. 4 Placer Mining Claim,
Fay No. 5 Placer Mining Claim,
Fay No. 6 Placer Mining Claim,
Fay No. 7 Placer Mining Claim,
Fay No. 8 Placer Mining Claim,
Hazel No. l Placer Mining Claim,
Hazel No. 2 Placer Mining Claim,
Hazel No. 3 Placer Mining Claim,
Hazel No. 4 Placer Mining Claim,
Hazel No. 5 Placer Mining Claim,
Hazel No. 6 Placer i\1ining Claim,
Hazel No. 7 Placer Mining Claim,
Hazel No. 8 Placer J\·lining Chim,
Edna No. 5 Placer Mining Claim,
Edna -No. 6 Plscer lvfi11in3 C1ain1:
A-45
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49 of 86 R 496.00 D 2644.50 GRRFIELD COUNTY CO
Edna No. 7 Placer Mining Claim,
Edna No. 8 Placer Mining Claim,
Gold Bug No. l Placer Mining Claim,
Gold Bug No. 2 Placer Mining Claim,
Gold Bug No. 3 Placer Mining Claim,
Mary Ann No. 1 Placer Mining Claim,
Mary Ann No. 2 Placet Mining Claim,
Ma1y Ann No. 3 Placer Mining Claim,
Mary Ann No. 4 Placer Mining Claim.
Mary Ann No. 5 Placer Mining Claim.
Mary Am1 No. 6 Placer Mining Claim,
Mary Ann No. 7 Placer Mining Claim.
Mary Ann No. S Placer Mining Claim,
Mary Ann No. 9 Placer Mining Claim,
Mary Ann No. IO Placer lltining Claim,
Mary Ann No. l l Placer Mining Claim,
Mary Ann No. 12 Placer Mining Claim,
Maiy Ann No. 13 Placer Mining Claim,
Mary Ann No. 14 Placer Mining Claim,
Mary Ann No. 15 Placer Mining Claim,
Mmy Ann No. l 6 Placer Mining Claim,
Mary Ann No. 17 Placer Mining Claim,
Mary Ann No. 18 Placer Mining Claim,
Mary Ann No. 19 Placer Mining Claim,
Maiy Ann No. 20 Placer Mining Claim,
Mary Ann No. 21 Placer Mining Claim,
Mary Ann No. 22 Placer Mining Claim,
Maiy Ann No. 23 Placer Mining Claim,
Mary Ann No. 24 Placer Mining Claim,
Mary An,n No. 25 Placer lvlining Claim,
Mary Ann No. 26 Placer Mining Claim,
Mary Ann No. 27 Placer Mining Claim,
i.\:1o:.ry J\nn No. 28 Placer :tviining ('lairn,
Mary Ann No. 29 Placer Mining Claim,
:\•1ary Ann No. 30 Placer Mining Claim,
Mary Ann No. 31 Placer IV!ining Claim,
i'Aary Ann No. 32 Placer Mining Claim,
A portion of the Mary Ann No. 33 Placer Mining Claim,
A po11ion of the Mary Ann No. 34 Placer Mining Claim,
A portion oflhe Mary Ann No. 35 PlacerMining Claim,
.A. portion of the ~viary Aitn ~'io. 36 Placer Ylining Clal1n,
A portion of the Mary Ann No. 37 Placer Mining Claim,
. .\portion of the IVIary Ann No. 38 Placer -f..,1ining Clain1,
A-46
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50 of 86 R 496 .00 D 2644.50 G~RFIELD COUN TY CO
A portion of th e i'v1ary Ann No. 39 Placer Mining C laim,
A pon ion of the Mmy Ann No. 40 Plac..:er i\r1ining Claim,
situated in Garfield County, Colorado, d escribed as follows:
Six th Principal Mer idian , Colorado .
T. 4 S., R. 95 W.
Sec. 19, lots 1 th roug h 4, in cl usive, E Y2, and EY2 \VY2;
Sec. 20, lo ts 1 through 4, inclus i ve, WY2, and SE%;
\cl""( L '' e..
Sec. 2 8,. lots l through 3, inclusive, SWV., SF.1/., SW Y.:NEY.., SEY.,}.JE'/., and NEY.NEY..;
Sec. 29, a ll ;
Sec. 30, lo ts 1 t hrough 4, inclus i ve, EYi , and EYiW12;
Sec. 3 1, lots 3 through 6, inclusive, E Yi, an d EY2 Wl/2;
Sec. 32, a ll ;
Sec. 33 , all ;
. S ., R . 9 6 W.,
Sec. 22, lot s 1 t hro u gh 6, i ncl us ive, NWY.1 , and S YiSl/i;
Sec. 23, lots l, 2, an d lots 4 through 8, inc lu sive, NE 1/.i, SYiSWlf.i, and SWl/iSEY.:;
Sec. 24, lo ts 1 through 4, incl us ive, Sl/iN'/i , and SY2 ;
Sec. 25, al l;
Sec. 26, all ;
Sec. 27, all ;
Sec. 28, EYi
Sec. 33, SI:Y4; EY2NE 1/1; SW lf.iNElf.i
Sec. 34, .lots 1 through 4 , inc lusi ve, N Yi, and N Y2 S Yi;
Sec . 35 lots 1 t hro u gh..4, nc ln s1ve 'Yi , anCI N V2 Sl6 ;
Sec. 36, lots 1 through 6, in clu sive, S Y2NY2 , and N~~SWY<i.
A-47
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655 347 07/02/2004 02:58P B1602 P306 M ALSDOR F
51 of 86 R 496.00 D 2644.50 GARF!ELD COUNTY CO
SCHEDULE 1-A40
U nocal Parcel No. 7659
(Book: 293 at Page: 11 7
Recording Date: May 18, 1956
Grantor: Henrietta E ll ett Frazie r
Grantee: Unio n Oi l Company of California)
1(35•1 r-.1,CV(' -to Ao?/)')" c L>P
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A ll of th e following desc ribed cracts of land, s ituate, Jyjng a nd b e in g in th e County of Gar.fie ld
and Stat e of Colorado, t o-wit :
Lots One (1), Two (2), Three (3 ) and four ( 4), the South Half of the North l-lalf (SY:iNYl) and the
South east Quarter (SEYi) o f S ection T wo (2 ); th e East Half of t he North e ast Quarter (EYi J\TE1,~)
of Section Ele ven (11 ), !fownshiv Five (5) South Range Nin e ty-six (96) West , Sixth (6:0 ) P .M.
EXCEPT any p o rtion conveyed to Exxon Corporation in d eed recorded December 22, 1983 in
Book 640 at Page 8 69 .
A -48
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655347 e7/02/Z004 02:58P B1602 P307 M ~LSDORF
52 of 86 R 496.00 D 2644.50 GARFIELD COUNTY CO
SCHEDULE 1-A41
Unocal Pnrcel No. 7661
(Book: 290 at Page: 72
Reco rdin g Otite: November 18, 195 5
Gran tor: Charles Ellet
Grantee: Union Oil Company of California)
K3 5 L\ % c..Dr ~ Pi o:, 5'H. c t w
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All of th e following described tracts of land, sit uate, Jy]n g an d being in the Co unt y of Garfield
and State of Colorad o, to -wi t:
The Southwe s t Quarter (SW~) of Section Two (2) EXCEPT any portion conveyecl to Exxon
Co11-1oration in deed recorded December 22, 1983 in Book 640 at Page 869, Lots One (1) and
Two (2), th e South Half of th e Nort he as t Quarter (SYiNEY.i) and the South east Quarter (SEY..) of
Section Three (3), Township Five (5) So uth , Range Ni net y-s ix (96) West, S ixth (6th) P.M.
A -49
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655347 07/02/2004 02:58P 81602 P282 M fiLSDORF
27 of 86 R 496.00 D 2644.50 GARFIE LD COUNTY CO
SCHEDULE 1-A22
Unoca l Parcel No . 7624
(Book : 134 at Page: 332
Recording D ate: April 2 1, 1922
Gran tor : De los D . Potter
Grantee: U ni on Oil Co mpany o f California)
A!I of th e fo ll owin g described m in in g c la ims or premises si tuate, lying and bein g in the Co un ty
of Garfie ld and S tate of Colo rado, to-wit :
The Federal No. 5, Federal No. 6, Federal No. 7, Federa l No. 8, Fe deral No. 9, Federal No. 10,
Federal No. l 1, Federal No . 14, and Federal No. 15 plac er mining claims, sit uate in Garfic1cl
County, Colorado, described as fo ll ows:
The Federal No. 5 cl aim comp1isin g the Lots three and fo ur and th e south half of the n orthwest
quart er of Section fo ur in Township fi ve sou th of Range ninety-six west of th e Sixth Principal
Meridian; the Federal No. 6 claim comprising th e so ulhwest quarter of said Section four; the
Fed era l No. 7 claim, comprising the southeast qu arter of Sectio n five; sajd Township and Range;
the Federa l No. 8 clai m, compr ising the Lots one and two and the so uth half of the northeast
quarter of said Sec tion fi ve; the federa l No . 9 claim , comp ri s ing th e Lots three and four and th e
so uth ha lf of lh e northw es t quai1er of s aid Sec tion fiv e; th e Federal No. 10 claim, compris ing th e
so u thwest quarter of said Secti on five; the l'ederal No. 1 1 c la im, compri sing the northwest
quarter of Section eight; said Township and Range; th e Federal No. 14 c laim, comprising the
rwr theas l qua 11c r of saicl Sectio n eight; and th e Federal No. 15 claim, comp1is ing til e nort hwest
quarter of Sect ion n ine, said Townshi p and Range.
A -24
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655347 07/02/2004 02:58P 81602 P310 M RLSDORF
55 of 86 R 496.00 D 2644.50 GARFIELD COUNTY CO
SCHEDULE l-A44
Unocal Parcel No. 7693A. 7693R 7693C and 7693£
(Book: 377 at Page: l 06
Recording Date: June 22, 1966
Grantor: Eaton Shale Company
Grantee: Vnion Oil Company of California)
The following described Jots or parcels ofland situated, lying and being in the County of
Garfield, State of Colorado to wit:
D. & R. G. No. l Placer Mining Claim embracing Lots One (1), Twn (2), Three (3), Four (4),
Five (5), Six (6), Seven (7), and Eight (8) of Section Sixteen {16);
D. & R. G. No. 2 Placer Mining Claim embracing Lots Nine (9) and Ten ( l 0) of Section Sixteen
(Hi);
D. & R. G. No. 3 Placer Mining Claim embracing the Northwest Quarter (NW-1 !4) of Section
Fifteen (15);
All in Township Six (6) South, Range Ninety Six (96) West of the Sixth (6th) Principal
Meridian.
The West Half of the Northwest Quarter (\V-l/2 NW-114) and the Southeast Quarter of the
No1ihwest Quarter (SE-114 NW-li4) and the Northeast Quarter of the Southwest Qua11er (NE-
l/4 SW-114) and Northwest Quaiter ofthe Southwest Quarter (NW-1/4 SW-1!4) of Section
Twenty Three (23 ).
Burbank Claim, cornplising the North Half of the Northeast Quarter (N-1/2 NE-1/4) and North
Halfofthc Northwest Quarter (N-1!2 NW-1/4) Section Twenty Two (22);
Burbank No. 2 Claim, comprising the South Half of the Northeast Quarter (S-!f2 NE 1 !4) and
South Half of the Northwest Quarter (S-1/2 NW-1/4) Section Twc111y Two (22);
Burbank No. 3 Claim, compiising the North Half of1he Southeast Quarter (N-1i2 SE-114) and
NoTth Half ofihc Southwest Quarter (N-1/2 SW-l/4) Section Twenty-Two (22);
Burbank No. 4 Claim, comprising the Southwest Quarter of the Southwest Quarter (S W-114 S\V-
1 /4) Sec.ti on Twenty Three (23) and the South llalf of tbe Sottlheasl Quaner (S-l /2 SE-Ji4) and
Southeast Quarter of the Southwest Qua11er (SE-1/4 SW-1/4) Section Twenty Two (22);
A-5'.!
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655347 07/02/2004 02:58P Bl602 P311 M ALSDOR F
56 of 36 R 496 .00 D 2644.50 G~R F IELD COUNTY CO
So uth on e-half of F ederal No . 22 Cl a im compri s ing th e East Half of th e No rth eas t Qu art e r (E-1 12
NE-114) Section Twenty One (21);
Fede ral No. :n Ct;1irn. comprising th e East Half of the Southeast Quarter (E-11'.:! SE 1i4) Sec tion
Twenty One (21), and t he Southwest Quarter of the Southwest Quarter (SW-1 /4 SW-1/4) Section
Twen ty Two (22);
Fed eral No. 18 Claim, compri sing th e Southwest Quarter (SW -1/4) of Sect ion Twe nty One (2 1);
Nort h one-half of Federal No . 30 Cla im , co mp rising th e North Ha lf of the Northwes t
Quarter (N-1 /2 NW-1/4) S ec tion Twenty E ight (28);
Nort h one-half of Federal No. 31 Claim, cornpJising the North Ha lf of th e Northeast
Quarter (N-1/2 NE-1/4) Section Twenty Eight (28);
North one-h alf of Federal No. 32 Clai m , co m prising the North Half of th e Nort hwes t
Quarter (N-1 /2 NW-114) Sect ion Twenty Seven (27);
fil_bei1ig in T wnsh ip F ive (5) Sout h, Rauge Ni e y Six (2.6) Wesl, tbe Sixth (6th)
Princ ip al Meria iai .
A-53
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655347 07/02/2004 02:58P 81602 P279 M fiLSDORF
24 of 86 R 496 .00 D 2644.50 GAR FI ELD COUNTY CO
SCHEDUL E l -A19
Un oc al Parcel No. 7621
(Bo ok: 134 at Page: 521
R ecordin g D ate: September 5, 1922
Gra ntor : T he Federal Shale Oil Company
Gran tee: Union Oil Compa ny of Ca li fo rnia)
Al l of th e follo w ing descri bed prem ises situ ate, lyin g ancl bein g in th e Co un ty of Garfield and
State of Co lorado, to-wi t:
Th e Fed era l No. 3, F edera l N o. 4, Federal No. 12, Fede ral No. 13, F ederal No . 16, Federal No.
l 7, .Federal No. 18, Federal No. 19, F ederal No. 20, Federal No. 2 1, Con-egido r No. 3 and th e
Corregidor No. 4, placer mining claims, situate in the Parachute Min in g .Di strict , Garfield
County, Colorado, described as follows :
Th e Federal No. 3 claim compris in g the so uthe ast quarter of Section fou r in o wn ship fi ve so uth
of Ran ge ninety-s ix wes t of the SixthJ>ri nc ip al Merid ian; th e Federal No. 4 claim comprising t h e
Lo t s on e and t\No and the so uth hal f of the northeast qu a rte r of said Section four; the F ed eral No.
13 claim comprisin g the sout hwest quarter of Section eight s aid Township a nd Range ; the
Fed eral No. 13 cl aim co mprising the south east qu art er of sai d Secti on e ig ht ; th e Fe dera l No. 16
claim comp1i sing th e sou thwest quarte r of Section nine, said Township and Range; he Fe er
o. 17 claim, comp ri s in g t he no est uarr cr o S~1 six teen , said T ow nship and Ra nge; the
e al No. 18 claim comp r isi ng lh c northeast <:>rS-ect 1o n seventeen, sai d Town ship and Range;
th e Feder a l N o. 19 clai m comprising the so utheast quarter of said S ection sev enteen; e 7 ~<l era l
N o. 2 c jrn , compris ing the soutbw eiu q uaiier of sai d Sectiou s i, ee1 ; and the Federa l No. 2 1
cornpti si n g the west half of the east hal f o.f said Sec tion sixieen; and the Con-egidor No. 3 c laim
comprising the west half of th e east hal f of said Section nine; and the Conegidor 1 ·o. 4 claim ,
co m prisin g th e ens i hal f of th e cast h a l f of said Section nin e.
A-2 1
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655347 07 /02/2004 02:58P 81602 P299 M ALSD OR F
44 of 86 R 496 .00 D 26 44.50 GARFIELD COUNTY CO
S C HEDULE 1-A36
·cnoc.:a l Par ce l No. 764 4
(Book: 264 at Page: 580
Recording D ate: Jul y 2, 1952
Gra nt or: Charles C. Dere
Gran t ee: Uni on Oil Compan y of California)
All of th e following described lots o r parcel s oflan d si tu ate, lying and being in the Cou nty of
Garfield and S tatc of Colorado , to-wit:
To ..,vn sh ip 5 South. Range 95 West. 6 th P.M.
Sec. 19 : Lots 3, 4 , 8, 9, 10
That portion of Lot 1, Lot 2 and Lot 5 bo unded and descr ibed as follows:
Beginning at Station 0, where the North and South County Road as 110\V co nstru cted on the
Middle Fo rk of Parachute Creek intersects with th e North line of said Section 19 at a point N .
89° 55' E. 2 11 ft. fr om th e Wi tness C omer to th e Northwe s t Comer of said Section 19; mnning
ihencc N. 89 ° 55' E. a long the North line of s a id Sectio n 19 452.5 ft. to S tation 1, at th e foo t of
s te e p s lope; th ence S. 44 ° 10' E . a lon g th e foot of said s lop e 189 fi . to Sta tion 2,
thence S . 73 ° 30' E. 180 ft . to S t a tion 3;
the n ce N . 84 ° 40 ' E. I 05 ft. to Station 4;
thence N . 67 ° 53 ' E. 482 .5 ft. to Stati on 5 on th e North lin e o f sai d Section t9;
th e nce N . 89 ° 55' E. along said N orth line 5 58.5 ft. to Statio n 6 at foot of s teep s lope on the East
s ide ur lhe East Middle Fork of Parachute Creek;
thence S. 7 1 '> 30' W . a lo n g the foo t of said steep s lope 224 ft . to S tation 7 ;
thence S. 25 ° 10 ' W. 150 n. tu S ta ti o n 8;
th e n ce S . 43 ° 07' W . 275 ft. to S t ation 9;
th en ce S. 39 ° 32' W. 828.7 ft. to Station 1 O;
then ce S. 27 ° 15' W. 593 ft. to S ta tion 11 ;
thence S. 59 ° 25 ' W. 382 ft . to Stati on 12;
thence S. 37 ° 1 O' W. 186 ft. to S tati o n 13;
thence S. 10°20' W . 152 ft. to S tat io n 14;
th e nce S. 32 ° 47' E. 223 ft. to Stati on 15 ;
thence S . 2 ° 55' W . 368.5 ft. to S tation l 6 at t he fo ot of steep slope on the East side of P arachut e
C reek and on t h e East and West Yi Section line of said Section 19;
t hence W . a lo n g s aid 'I. Section line 326.8 ft. to S tat io n 17 on the aforesaid North and South
Cou nty Road across sai d Secti on 19;
thence following a lo n g said County Road N. 15 '1 32" E. 199 n. to S ta ti on 18;
A-4 1
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655347 07/02/2004 02:58P 81602 P300 M ALSDOR F
45 of 86 R 496.00 D 2644.50 GARFIELD COUNTY CO
thence N. 20°00' E. 193 ft. to Sta ti on 19;
the nce N . l 0 48' E. 159 ft. co Sta tion 20;
th ence N. 9 ° 21' W. 129 ft. to S tation 21;
t hence N . 16 ° 47' E . 55 1 ft. to Sta ti on 22;
thence N. 13 ° 50' E. 159 ft. to S tation 23;
thence N. 32 ° 20 ' F.. 2·10 ft. to Srnt ion 24 ;
thence N. 13 ° 55' E. 252 ft. to Stat ion 25;
the nce N. 73 ° 15' E. 40 ft . to Statio n 26;
thenc e N. 15 ° 34 ' W. 238 ft. to Station 27;
th ence N. 13 °25' W. 448 ft. to Sta ti on 28;
th e nce N. 48 ° 27' W. 127.8 ft. to Stati on 29;
thence N. 66 ° 22 ' W. 116 ft. to S tation 30;
thence N. 52 l) 05' W. 71.5 ft. to Statio n 0, th e point of beg inning,
Sec. 30: Lots 3, 4
Sec. 19: Nor th H a lf (N/2)
Sec. 20:
A-42
Certificate of Good Standing
OFFICE OF THE SECRETARY OF STATE
OF THE STATE OF COLORADO
CERTIFICATE
!, tvfike Coffman, as the Secretary of State of the State of Colorado, hereby certlfy !hnt,
3ccording to the records of this office,
EN CANA OIL & GAS (USA) INC.
is <ln entity forrncd or registered under the b.\Y of
Deb ware
has complied with all applicable requirements or this office, and is in good standing with this
office. 1l1is entity has been-assigned entity idcnti fication n rnnber 2000 l 081983
This certificate reflects facts cstablishGd or disclosed by docunients deiivered to thls office Or'
paper through 06/26/2Q07 that h_ave been posted_, Jnd by docun1ents delivered lo this office
electronically through 06/2912007 (ill \ J ·34·36. , ,;; ..
I have affixed hereto the Great Seal of the Stale of Colorado and dll\y generated, executed_,
aulhentlcated, issued, delivered and con1municated this official certificatG at Denv<:r, Colorado
on 06/29/2007@ 11:34:36 pursuant !o and in a:::cordance \v\th applicable \av./ 1l1is certific<.1-Ie is
assigned Confinnation Nun1bcr 68211~!0 .
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,.·,r :·,-~.-.;: . ., :,f Sr,:1c·:
Tom Brown \Vithclrawal Document
Ir dornrr.r,r.1 i~ on p.'->Jn:
lr docum.:nl is tikd dtctronic;:; lly·
I'~..::> :ire s'.lbj~ct to ,;h~ni;e.
F~r de:'1of!ic filio:>,Jnd :o.ol:.uin
cn,:cs of filed clccomcr-<S ,-joi\
~~~ <".11~ P'!,L~
Ddiv~rv;;?;;r docurm•nis N"
Color:i.do S.-xrcuf}· ~rseit.o
B,.:;·n~> Dt.tiioo
!56<l nr~l~"·'Y· su::~ 201
D,·""-cr, CO S020!·5l&!>
SI0.00
Cuncr.\ly ?'fol A·;::[l;!.blc
r~vr ~ocun,~nll m~1l bo r,-.,:'O>l or "''ct>ir.;:: ~;101cd.
St::itcmcrJ of"Fore:igu Entity \VHbdr.nral
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·:·:I:'. 1~·::~i' (; :::TXfE
1)! -1 -L.·:·1).3 l :=;; 5;_:; :
iik<l pur.;~~~; 10 ~ 7 ·9/J-JO l, -!I 5eq. and ~ 7-90·.~0.'i c( tl\c Coloo,:J.o k.:.1·i~~c S!Jtu1'>...5 (C. R.S}
1'..'B7i73615-)
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4. JtUi;;dic:iori cfforr:';.l!iorr
:no 17lll s1re~1. s~:1., i7C:J
_o_,_"'_''c'--,cc,c,,-----~s~:,-J
G. ·!·.1., .;~1 !::r w1H 110 i;;n~<:r r.~nsJct busiicss or <.:endue; Jc;i-.iii~s iri. :hi; s!Jl~ ;;.:i1 it r::ll;:qui~hc~ \1_;; ~'.l:~ority
~n ltJ.lli.)CI bu>in~5~ o; coriduct ~'2(iv\rj,;5 in <his sc~tr;
~·~.r~~~~~l;~~ ~~~~:~d:~~~~:t::;l~)~;i;~:rr~~~~~i ~~c ~c;~~Z-~~~~ ~~\~~~-~~~~~:·1~11~~~/~u~~~~:.·:l:~ ~1~;-1 ~~-~)? 1,
d:::; ->~Jl~nl;.'.;';i
C:il:~:ri~ ;~1i> dV<:tn-.i'.rt.;;i b~ dcli<>cr:Cd '" L~~ 5tc:re:.1cy d !lo:-! f,,, ;"\[Li•;<; sh:::ll •:or.~:1 •D:<.: L'ic.: ;:.ffim::~1i,:,~1 •or
~~~:~~~-;;~ ~;~~~~;~~~\~:~~'-i;~ ;~~~ ~~ ·~;.~.~~~~~J~c~ ~~i~~J\~{i1~1b:·~;~ ~::c~~::(~ ~c~.~~~:f~ :~~tJ~~\~~c~~:.~~ i~ ~:,;1'
•,>;:-r;on w ·.d10sc \Jd;:ll1\:~ l.•rEvid'.''.'.i i1 cc!lslcg :be Joc'.l:ncrH 10 be '~c:i>'<:rcr\ C'Jr lilin::;, 1U:..:u ;r. CO'lfom~ity
w::~ ;he :-·::r1ir~1ocr.G .:;( p:11; } ,) f ;)rtick ~O o(ti:l:: 7. C.K S., tl'.:: ·~<Jr1>!,c~cn1 °Jo.:•!'11~1:•s. ,md the ,)r;:cnic
~;:;!.:I<:~. :::~G tbt :he Qdivitb,1! i'1 t;On;! l~l>_fi. bdi.:·:.:.s the _-J~lS ~'.:J!Cli j-, tl1t dvcllr,1cr.t ;,_;~ :r->J·~ ;;1,.J th-::
rJ0<:"Ji:i~nc (0"10li:'..S "id; tl1c ,-,,q;.;:r.::,:~11r:; o/' !bl ;-'or , :!'.~ ~0r..;1!r..:.:111 ,!.xu1ncMs, :rnd !\;c or!_;>.~;,_, :;le!:·=· -
: '.;i; p·"1j::;y n;,t(c~ Jf?lit> to c~ch indi• \1u<ii ,·:h.;: C~'. ,~; thi:; '~".-~'JJ:"H:P! ;o ':c dd;,·~:~<i l·J :h~ 5<;eCrd~:-; o;'
o!J\:, "·l:d:!•:r Jr~·"'' ;;i-:l-ir.<::\•;;d•JJ! ;s; ;: :n~d in :he (],y;:::r~~:\t ~-.s O:l'" ,.,hob-; t~t!>:::C: i! ''J l:;.:.-!~:1,,~;~.:J
:'.-\ ,_,:;,.
:__:
k~~\ rcq\lircrr.cnts l.S oiiL; rcvi&lon Cote, comp!i3~ct with ~pr\iobk bw, 3:> the .:;.J.f;~e no~y t>c ~rnrn<lcd from
l~-:i" \o tirn<:-, rcmJir.s the re9oosibi1itf of the user ofthi1 fomi. Ques,:ions shc1~ ld b~ u::ldr~d lo 1h~ es~r'5
~no:-n~y.
Recorded Delaware Merger Document
ST.?i.TE'. 07
"TOM BROlfll,. INC_"',. ll DELAWARE COllPORATIO!'f,.
WITB _AND rw.ro ".£NC.~ on. ~ G..i\S (US.A) INC -" DNDER. TEE z:L-)ME
OF "ENC.'!NP. OIL & GAS (USA) INC."; ll CORPORATION ORG.'liiIZED AND
EXISTING ON-VER THE LAWS OF TlS ST.TI'S OF DELJt-;..TAR.E, W_l-31 RECEIVED
.UID FILED JN XilTS OFFICE 7i!E Th'f:Nrf-SECOHD DAY OF DECEMBER, A.D.
2004T AT 6:15 O'CLOCK P.H.
CO.RPORATIOU SE.ALL BS GOVF:R!iZD BY TJE Ll;.)lS or 1'IfE S_TATE OF
DEL.liWARE _
J..D. 2DiJ5_
.•.•.•. -· '·'-'·· -?;'.-_-_--,_-_-------.·· ---~ ----------~---=-----'. ::-. --o ·:-,.---·:.-_-_,)-, ··.\; ,.-;, :i-:·. ::.~~. c:~.--, ;:,f 5·
EnCana Application of Authority and Name Change Request
\
I
I. 6f-IANG£ or: ,;1
· 1'1AMS
AMENDED Al'PLICATION FOR AUTHORITY
TO TRAi'lSACT BUSINESS FOR A PROF!T CORPORAT!OCi
Fomi7.115.l04.ll;'.:vi$:d.11.126r2do1 .. ; .
FiEog fee: $25.00 Th.is docura~tmust be typed or rriachine pri;i;cd_
Ifruore soacc is rcauircd, contidue on attJched 8/i.'' x l l~ shcet(s).
Deliver i copies to: Color:ado Secretary of State, Business Divlsioo, ~ DQ'\r::fn~ViJ)SO~l:
. 1560 Broad'i'-oy, Scite 200, De~\cr, ~O 8.0202-5169 _ ·, ctiwR>.Do :ff..cRE'fMY pFsr~!B
P!.'O'.ase include a typed or machwepn.ntcd, self-addressed, enveiope. 20021093182 M
for filing requireroonts, see§§ 1-50-301 and 7-115-104, Colorado Revised Statutes $ 25 • OD
for more jnformation1 see the Cititen 's Guide to lhc _Bwiness Division on. ou.r:-
\Veb site www.sos.state..co.uS~1 Questions? Contact the Business Division: · ·SECRET ARV OF STA TE
VOiC/:! 3Q
1
J'8:94 225), fax JQ} $94 2242 Of e-ma:J ~QS.bll.SiTICSS@StatC.C0.1.lS ~ ?>0'1 B ~ldk-J2o-J002c!Z-i~ ~~24 r:: v c_ ~· / tf J' / 7' d 3 .. . .
The lIDtlersigned corporatitn., pursuant to § 7-115-104,Colorado Revised Statutes (CRS.),
delivers this amended appl cation for authority to the Colorado Secretmy of State for filing, md
st2tes as follows: . .
L Theentitynameoftheirporationis: A.EC <Dil & Gas (USA) Inc.~~
2. The assumed intity narhe, if any, currently being-used iTJ. Colorado is: I ~~~~~~~~~~
J .
3. Con1plete one of the fcipowing statements as approp1iate:
~ The corporatidb has changed its entity name to:EnCaP.a .oil & .Gas (USA) Inc.
The assumetl name it elects to use in Colorado (if the new entitv :r...a.i.-ne is not
available r0} use in Colorado).is: . -
rhe entity na~~ of a corpor_olbn shall con lain the term. "corporal ion", "incorporated",
''company". 1:(i~ited" or an ahbrevialion of any of these terP1s, pursuant co §7-90-601 (3)(c) C.R.S.
LJ The corporatic~has cba.11ged its assllIIled name to: ______ _
I 0 The ccrporatiorihas amended the period of duration in its i\rtic1es c1f [ncornorat!on to: . . ' .
0 1'he corporatiorihas changed its state (or countr,-r) of i.ncorporation ::l·orn ____ " ________ _
----~~--~-To _____ _
'-t. This an1ended applicati~n lvfUSTbe accoopanied by l c;:;rtific<JLt of fact, or doc:t:..-<r..ent o:·
siinilar i.rcport, duly authenticated by the s_eCretary ofsL'lte or otil.e.r officic.l having custody of
corporale records in the stafe or cour1tryunder "vhose [a\V it is incorporated, ce:tifyi_ng the
staten!ent(s) niqde. above. Such cc.rijfic2te shall be dated \vifrir1 ninety (90) days before the fiEng
oE this arnende-d cpplicatior..
), The zi.dJress to \-Vhich the Secretary uf St:~;:c rns.; s·::nd 01 ;::..:;9y ;:_,~-:.his dc<.:,_;r::;';iE :..;p::;;:.
._::c:cnpletior. cf filirtg (or to u; h.ich th·::: Secr_tu.:.ry· 0: .StG.e rn.::y cc~_!f:1 this do.:::Ln-1.~nt if fJi-..::~ i·~
:·ef.is~<l) i'.:: ~.rn'.J .2--3er:e.$~n'.'!l". : ____ .Ssq_._c_ _8J_l_ 1_ 7 t~j)-~__:_'._ s~1i-:e __ ~ou '-~L'l·= .: __ C;') ·e.02:.~ L
-/J, -/) -----~_,'l ------.-
Sgr:ccu;;;HlJ!g..1 !(· /'\ (Jµ~·»."'· .. H ___ ;)[gnc,-'t:<c::•o(D11m·:J/-fak ,,.,, .. _..L, _ _'.J,•ci"··2Licccetc,··;
:,, .. ,'c':.-f:, :~,:~,~~c:-c.r:v::.:·~r.v.:i;:,r;.:';:~i::~c::!-;~ ~rk . .:-~-~s'.(:~ __ .. ,:;
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·------.... -------· --·-·------------.. _____ -~nM~JIESii~gs·~r~
i
[)efaware PAGE 1
I
i i 'Y!ie JYrst State
! :I
I, ill'JUUET SMf TR WINDSOR, SECRETARY OF STATE OE THE SJ'l>.TE OF
DELAWARE, DO HEREBY CERTIFY THAT TEE SAID "AEC OIL & GAS (USA) . I . .
INC. ", FILED Jl CERTIFICATE. OF A1·1ENDMENT, CH_i\NGING ITS NJlJ'1E TO
"ENC.4NA OIL & GAS.I (USA) lNc_ ", :rllE FIFTH DAY OF APP.IL, A.D.
2002 1 AT 4:12 OrCfOc:K P_M.
I
I
·-----------·--------·--·----
·f:;_r;i~: ~;r.i'J; ·/.::, ·iovr, $::c ec;:,~I ;:.f S::.i~
A""" inclu<lo • typ>d
~~tel m11ticpo
MU,,"T BE TYPED
RUNGFEE: $75.0D
MUST SUBMIT Il'iQ CORES
M211 to: Secrstary of Sr.ctB
Co<pq..rlcn> Sectlco
"16SO 13roadHey, Suire 200
o~or. co ao202
(303) B94-22l1
Fox (303) 3•4-<242
APPUCA nmi FDR AUTHORITY
I
I ~:;:: Q~~j
'" n.,_;;;.-,,•,x.oT•' t 17'"'
=-~;; :; "'= .
; ?J, ~-
::_:::::Pt 1M;:"· :: :;-.:-; ! -~..,-.::-!..-.f,C::! ~::; 1 : _.~
Puc'ltllli to !ha prcvi:Sion!I of 1tm Golcrra:io Busim::u Go~.cr&lon Act, tho uriOer-ilgr.~ ccrpvrJlioo he;ety <lypif~ I or
AUl!-.crity to t rM'.lac! t:uSncss. in CU¥.&fjO_ arrl for lh81 p.;f!::OO-B subr.iit.'I lM lollcrH Ing siaternCT!\:
011
FlRST: fhil fl!L'llC of tho-::orporZ!loa is,n=c~o1,1o.c'0--0"c'"'~ll,SA=~'='='c/c· -----------------
(&~ot Co1porntlo11 nV-l> m~ ~giec 'N illl tt\B ll!t'.101'\o~ Cti;t!flc~..c. :i G:iod S-tor.dng)
TH\RD: !t ~ incorp;:iratc::l UJJC<!r Ill~ !!Hf s of,Ual=,•c'c'·o·0o... _____________________ _
R)URT/-t nie date of /ls tncorpof2lion ls"'"'"'"'"'~"~---!he ;Jerfc.cl ofdurll"licn ls ,,,,,r,p,0 ,rn,•,lo.._ _____ _
SIXTH: The strwl 11ddreui of ~s p.-oposf>d r£i;Jlste<lld olfics In Colorado isclo5e1,-S_.,8cco''"e"'~""'"v'-----------
c'"~=''''''-''"""'"""'~•~d~o_lco"2"0"2~------------, and tho nlmll of Its proposro ~!Jlsteir-00 aoent
in Colorado et that >ddrass-~ • "n C
(AddU~rnus!' hlcludi: bwGla-11 nufi'.bu J>()d ~h nurr.l>tt, ~t/ul !er :ulll r·:'loiJ nu:-nbt:), l"C:>'fri ~r -::r.y :ind V,. co;Jr. \n~!ud<">" P.O. &>.:
ff mri!n~~11in I~ eirlor~m Imm c:Ue.~ ·:oddn:~~)
Sigr;~l~re Vo AeQl.~t<t:d Ag~n~ ,d?M~ ;;~ . {rney_ t'a ifl ~0mp<1111Jr.g.°C<;1,J.11c_n1)
DJte Bu$l.ne;;s commancKl o.r ~~ m k~J:' , .. 09.f."1:-l5.".~P.ot-llrc" Q·al ~ ~~,..,.. -.---,
QEElCE
P1<U>:}?;;t $;•;, ,:ir..;_l_-h:d \j,~t-qC of'1"1-~
Vice ?fw ______ _
6COY-------~
'"""'~------c:--c-c-c----c-cc---------------~-Oirector ~tt~c~.c.::i .i..'t c:. dict.:ctoo
Oi~,;cicr -----------------------------
Dlr~ctor----------------------------·
SQiTH TVi'.': ;Jpp:ic;.tion,\~'.JST BEACC0\11PANJED BY A CffifiF!CATEOf GOOD ~"T~.NlJ!N·:; iSSUa:J BY n--::::
JURlSD!CilON OF ri:s !t<cORPORA"iiQNANO DA W11HIN 1'.'INErf (<10) DAYS OF THE RUNG CF TliE
--------
Directors
?ergE.son, Bri:i.,t C.
',l/estc:Jtt, Roruid H.
Officen
E.re;m.a.-i, Rmdtll K.
J:un:::s, Guy C.L.
\Voj~ .. hn, JeffE.
fnguson, B:iJ.n C.
Appendix tc Co]c,rado
Application for Certificate:: of Authority
Directors 3ad Officers of
AEC Oil & Gas (USA) foe.
2t April 13, 2000
President
Vice---Pre::.ident,
North~m Expionriun
Vice-Presidenl
Sou(htm Exp!orition
ir.:asw:cr
SecreL1ry
3900, 42l -7'~ Aver.ucS.\V
CJ!gary, Alb::rts T2P 4K9
3900, 4Zl -7'.>i Avenue S.\V.
Calgarf, A \be.rta., T2P 4K9
3SOO, 421 -7&> .A.venue S.\I/.
Cilga.ry, Albcrla, i2P 4K9
3900, -12 l -7"\ Avenue S.\V.
CoJgary, AJberta, T2P 4K9
3700, 707-31h Avenue S.\V ..
Czlgary, .4.....lberu, T2P.1H5
3900, 421 -7':' A'ICllllC S.\V_
C9Jgary. Albert2. T2P ~K9
1900, ''>2l -7"\ A·;i::m.ic S.\Y.
C::tlgo.:ry. Alberta, T2P 4K9
39)0, i.J2l -7'~ Av~n;Je S.\l./
Calg<1ry, Aiii-:112, T2P .iK.9
)'1)0, 42 l -7'~ A Y~n,ue S. 'N.
Srate of Ddcn:oarc
Office of the Secretary of Stnte
Rt-CORDS o~ THIS Oli'OIC:O: SHOW, AS o:,-?HE: TIH'.~.l':'l:l::Tl-I DAY or .-'>..PRIL,
AD_ 2000.
E££N .FJLED TO DATE.
RJ>._V£_BE£H PAID TO OATt.
E:tui,,r.I), Fr~tl, Srcr<1~ry cf St~Ct
DAE
·'.'.-l
Quit Claim Deed from Unocal to Torn Brown
1 lHI:: Hill Hllli 11111111 illUlll i!HI Ill Hiii 1111 !i~l
655348 07/02/2ti04 03:G6P BiG02 p3qz M ALSDORF
1 of 3 R 1·s.fi8 D 0.08 GARf1ELD COUNTY CO
AFTER RECORDING, RETURl'f TO:
EnCam Oil & Gas (USA) Inc.
950 I 7th Street, Suite 2600
Dcnv-::r, Colorado 80202
_,;:i.ttention: Diane Blieszner, Esq.
OUITCLA.TM DEED
I
THIS DEED, dated June LL 2004, between UNION OIL COMPANY OF CALIFORNIA, a
corporati9n:_0 duly organized _and existing .und~r the \a\VS of tf.e State of California C'Grantor"),
whose legal address 376 South Valencia Avenue, Brea, California 92823, and TOM BRO\VN, INC.,
a corporation dilly organized and existing· under and by virtue of the hnvs of the State of Dela\vare
("Gron fee"), whose legal address is 555 .17th Street, Suite 1850, Denver, Colorado 80202:
\VlTI'fESS, that the Grantor, for and.in consideration of tJ1e sLu11 of Ten ancl_no/100 DOllarS
and other good and valuable· consideration, the receipt and sufficiency of 1,vhich are -}lereby
acknowledged, has remised, reieased, so:d and QUITCLAIMED, and by these presents does remise,
rel~ase, sell-and QUITCLAIM unto ~he Grantee, its successors and assigns forever 1 all the right, title~
) intere:;t; c!;:iim and demzind v1hich the_ Grantor _h3s in and to 8IlY and all real property, together ;.vilb
i1nprove1nents, if:iny} silu1te, lying and-being in:
1·0\v;1ship 4 Sourh, R3n~e 95 \Vest of the 61
h P.i\'1.,
TS''"!'soip.4 Sou.th, R:iJoge 96 West of the 6'" P M.,
lo1,vns~p 5 South. Range 95 \Vest of the 61h P.fvL,
·r L. • <' h n 96 "' . ,. I "" J) , [ 01.vnsa1p) 00UL" i:~ange · __ west O.[ l11e o ~.CV .1 . . ,, ' ... , -~ ~ [o\vnship 6 sl)llUl, Rang~ 96 v .. est of the b P.t\'t,
T 1 · -·"' ' n nr 1\' _ I' , .-!h D' f ,\)\'/!l3f1JP I :)0Utn, KJ.ngc ::;() •1/CSt (l tnc Q i -~~',-,
ofrc;:~l property:
[he leg;:d desc~iption of "vhich ts auached ~:s Exhi!)\~ /\ (tht.: "Chc.vro11 Resec.,-oir I:Ztght ct' First
l< .. cfus,,.11 Parcel") and txccpt '.1iJtcr .stor~1g~: rights related ;:o ::;uch p.1rcel.
I \~Ill\ Hill Hllli ~II ~1111 !1111111 ~1~~1111 HI!~ ll~l l~B~i ~5 53 43 07 /02/2004 03.: 06P 81602 P343 M (:lLSDOt,f
2 of 3 R l6.00 D 0.e0 GARFIELD COUNTY CO
unto GranuJr shall entitle Grantor to a cost free shan::: equ:il t;_; L'NO percen[ of S/8i.ils of all Shale Oil
i_n addition to any previously existing n1inerat interests or burderls excepted above and is nor
de per.dent on the existence (or nonexistence) of Jny· 1n!ncn1l !ease covering 2ll or any portion of the
Real Estate. Gra::itor may, 2.r !ts option ;-:nd ln it3' sc·ie discr~tlot1, elect from tirne to lime to tak~ ii:s
roy:::.lty share in kind upon giving.Grc'61ec at le.ast ninety d3ys prior v<'rirtcr; noricc of such intent.
IN \.VITNESS \1/HEREOF, the Grantor hc1s caused lLS corvor~te n1mc to be hereunto
subsc:r,bcd_ by its Jrtomey-in-f0.ct on this lL_ day cf June, 200+.
STATE OF COLORADO
) SS.
ClTY AND COUNTY OF DE01VER )
UNION OIL COMPANY OF CAL!FORi"JIA,
J. California corporation
Ackno\.vledged before me this _j___ day of Jene, 2004 by Brian J. Kelly_, J·\tto:rney-ln-Fact for
tJnicn Oil Company of California, a California corporation.
I !Hill Hlll ll/111111 iliil ~111111111111111Hin11'1 rn~I
6S5343 07/02/2004 03 ;\36P 81602 P34.4 11 hlSOO.RF
3 ot 3 R 16.D'li D 0.00 GrlRFIELD COLitiTY CO
EXHIBIT A
Lei:::.:d Descrirtioo -Che;:-ron Rescr.·oir Rieht ;:if First Rcf.is1l PJ.rc.::! and \\later Ric:hts
(1nc!udcs Linocztl P<:rcel Nos. 763 I, 7632,
7633, 7634, 7660, 7C93D, 7699 and
Portions of76!6, 7625, 7627.A, 7639 c.nd 7646)
Townshio 5 South. Ran~e 95 \Vest. 6th P.M.
Section 30:
Section 3 l:
Lots 10, 11, 12, 13 & 14
Lots 2, 3, 4, 9 & l 0
1·ow11ship 5 Soutli. R'1nQe 96-\\'cst, 6th P.M.
Section 25: Lots 7 and 8
Section 36: NEI/4 {.Zi SEl/4 except that part of the South 949_99· .fc;:;t tying \Vest of the
Centerline of Parachute Creek.
To1111ship 6 South. RanQe 96 West. 6th PM
Section 4: Lots 4, 10, !2 & and ~dl thot part of Lot i, SEI/41"/1~/l/4; S\-Vl/40f\Vl/4,
N\Vl/4S\Vl/4.ar.d Lot 11 lying East of the ccnterlin~ of Parachute Creek
Section 9: Lois 3} 4, 5, t l ii.:: S\VI/4\.V/1/4
'['C1CE'l'HER. \Vith a pr.trctl of land, reterred to :iS the Grantc~ Gulch S'.:h00\ Pzu·-~c:, ·1n the
Nonh1,.vest Quar~I_![ of the Sout!l'Ntst Quarter C0~V/l/4S\Vl/4) of Sc-ct[cr;. 4, r(O\';nslii;J 6 South,
\Znngc 96 \Vest of ;:h~ Si-xtb Prin1:ip~:d \[tric!ian, County of Ga~-f!eld, _St;:r;.; Jf C'.olur3dr.; cle:~;c_riOtd
::~s folltJ\VS:
St:1ning ar the Ncrlh·-.v~:a corner ofii:c S0uth 1:.:csl qJar:c:r ut'Sccti:Jn 4, ·rcv,:r1ship 6 South, R,:·,ng:.::
96 \I/est CThis Corner is [oc.Jtt:d on the South sidt: ot' a gulch) ntnning do'tvn rhe gu!c:1. S_ourh of
[ast 532 f'ec:t 10 tht: cret::k lr::.in1 thence d:)\YTI th-::: cn.::~k \Vesl '::·fSou~h 207 fe(:t fron1 thc:nce \'./csI
336 '.'tel fron1 thence Non.h 363 ft:t:t.
E>~CE?T[:'-.JG therefron1 th:it poni.on or C:cunLy <oJd 21S fr1~\ crosses !he su'aj=..:-:t pc..ifY .. :r~_y
lr,cL:ding th~ H .. oztd'>vay Sl.lf'il:_v p2rc:..:ls ;ir;J s!idc ~\1rcels cor;_\e._yed tu The B<!<lrd of C~CLH'.r';-' ,.::,f
[ ~; ----
FRCr1 Cl.rt.Al·ID ffiOTI-ERS If£
ENCANA.
~
EnCana Oil & Gas (USA) lne.
Febraary 13, 2008
FAX tO.
Reuben 0. and Stephanie D. Oldland
I4667RBCS
rufle, CO 816SO
Re: MasterSurfaceUseAgreement
Pipeline and CDP Construction
Rio BlllJlOO and Garfield Counties. Cr!lorado
Dear Mr. and Mrs. Oldland:
... ~!123-ZlOO
-(.)00)62'J.~OOO
mw..er><)!lnll.oom
EnCana Oil & Oas (USA) Inc. is planning to construct, operate and maintain gas
pipelines and CDP's (centtal delivery points) lhat wm cross a portion of your surface. As
part of the prnnitting process, we are required to notify you oflhi'll activity and obtain
yow-acknuwlcdgment of that notification. The locations of these filcilities 11re detailed on
the attached plat and are listed below.
Rio Blanco County
CDP: Township 4 South, Range% West, Section 21
Pipelines: Township4 South, Range 96 West, Sections 21, 28, 29, 32
Garfield County
CDP: Towmhip S South, Range 9(j We5t, Section 7
Pipeliues: TQwn$hip 5 South, Range 96 West Section 7, I8
Tho construction, operation and mah;ltenance of these facilities will be subject to the
Mamt Stttface Use ~t entered Into on February 11, 2005, by and betw«:n
Reuben 0. and St.ephanle D. OldWtd, Eva Christine Md Timothy James Uphoff, Gerald
A. Oldland, Oldland Brothers., ll'IC and Oldland aud Upboff, a partnership, and EnCana. If
yuu have any questions or require additional infonnation, feel free lo contract either
Preston Nelson in our Parachute offiai (970.28S.2667) or me (720.876.Sl 19).
Pl~ sign this letter in the space provided below end return one (I) C<>py to the
undersigned via fox at 720.876.6119.
rf:~£~
Group Lead, Land, N. Piceance Team
EnCana Oil & Oas (USA) Inc.
By Algnbi.g below, the $UrC11u owner hneby wnflrms ~'ipC of this n~tification Qf
Ea0tn1 Oil• Gu (USA) lnc.'s prvpottd oonstnid:i1Jn offadUtieJ as ducribed
'![:2"';';~·~J,. pu< bhQ~~ D~
Reu~n G. Oldland Stephanie D. Oldland
DatO' 21·~12fffi
ENCANA-
~-
·]
0
0
.VIASTf'.H SFRF.-\O; l!SE .-\GHEEML'iT
Tl:is Mi\STER SURI'ACE USE AGREEMENT ("'Agn:emem") is entered into
Lhis : /,.'-. dil}' of February~ 20;)5 (the "Effccti,·c [)ati:'~) bcl\vccn the Reuben G. ()tdl.ancl
and S1cphanie l). ()ldland. liu~banU a11d 'vift. l~vu (:lui~tinc L;phoff and Tin1oth:y Jarnes
l;phof( wife and husband, (lcrald t\. Oldland, Ol<lland Brnthcrs, lnc., and Oldl;1nd and
l_]phoCI~ '-~ partn~rship. :di of l-'166 7 RD(; 5 1 J{jfle, ('.olor~1do 81650 ("0\'•.1ncr"), nnd EnCana
Od ._1(: (Jas (USl\) Inc. ("'F11C~1na)'), a Dehl\varc C:orporation \vhose addn.::ss is 370 17:h
Street, Suiti.:: 1700, l)cnvcr, ('olorado 80202.
A. O'vnl.'r owns. lhc sur61r:t· nf tht real properly in Rio Bln11c0 ('otinty anJ (jarJic!<l Counly,
('o!orado des(:1·ibed in \i)C nttachtd anti int:<Jq)oratetl Exl1ibit ,·\(the '·Subjer.:t Lands'').
B. F.11Cana. or an affilialc has ~crtain rights to drill oil and gas \vcll~ and intends to dnJl such
•vclls and bH ild rclatt~d infr!_1structure and fi1ci!1t1es on the Sub3ccl Lands.
C. ()v.'ncr and .tn()1na \vish to enter into nn agr~cn1cn1 concerning the p:iyrnent of rentals
nnd thnnagcs to O\vner in i::onncch()n vvith the drilling, construction, completion 1 rc-
co111plction, rc\vorking, reentry, production, rnaintcnancc, access, an<l operation of the
\Veil:; and. all pipdint.::-i, <1nll u!ltt:r f<.n . .:ilitics or pJupcrty -of En(;ann or it!> affiliate:;
associated with the wells and located on the Subject lands or witl1 wells located on lands
o\vned by other partic;;;, wbl~h htnds ure accessed via lhc Subject Lands.
TJ·IEREf;ORE, in considcr:1tion of the inutuai coYcnants pro\'ided in this i\green1ent~ an<l
FnCanJ's agrt:en1ent to pay the rentals and dan1ages descnbt:d n1 this f\grce1nent, the p<lrties.
ngrec as fOJlo\v,s:
J _ \\'ELLS AND WEU, P,\DS.
"\.Yell" !:iha!I rnean a \\'Cll und tht: accornp;1nying \VCilbnrc (either vcrtic<illy or
dirccliona!ly drilh:d fron1 a "\\;ell Pad") for the production of oil and gas <'lnd all
associated casing and \Veil head cquip111cnt.
"\V(!l Pad)) shall n;e~1n n ;~hy:..lr,1! dnllsitc: an<l production locaLion which n1ay contain
one ur H\1.H<: \Velie,.:\ \V-..::\1 P-ad shall i1\·~lttdc, but not he li1nitcd to, proUuction e:·~1ui1)1ncnt
SUCh as JlO\.Vlint:S, ga.:-; plpGlJJlC:S, VUlHpS., ht.:i.llt'r Lrcatcrs, )t:jJUI<:tH>I!.>, tilllk l.ntllt:rlt.:S, Hll:(Cf
houses and other fae-ilitics necessary or convenient for testing, completing or producing;
oil or gas ft-Orn the \Velis.
2. WELL PADS.
a. Oarnng£_J\.n!£HJ.!J.!, Prior to the 'onHnencenl.er~tiun of any \Yell Pnd on
tho Subject Lantis, EnCana shall pay Ownei-·Danrngc Amount") per
Well Pad. W di Pads shall be no greater than two (2) acres in size after the initial
n:!:ill.H~liu11 full~l\ving di il!iug and co.111plction activities (\vhic:h initial restoration
<hall be complered not more than one year from completion of the Well(s) for
produc1ion), unless EnCana elects to increase the size of a \'fell Pad and n1akes
payn1cnt as provided in suh~c<.:tiun 2(b). If EnCana constn1ct5 .a \Veil I\1d on the
Subject Lands thnt di.'\turbs an area grttHi.''r than l\\'O (2) acre~ in size during the
initial dnll1ng and completion activities, EnCana shall pay O\vncr, \vithin thirty
(JO) days a Iler con1p\ction of consnucH~)n <~f the \\'ell Pnd, an n<lditionai-
pcr acre, prorated for less 1hun a frill a~rc. for such disturbed area inc~
f\vo {2:) :-irn_·,;; if :ipplicflhl e, s.u~~h :idditinnal p~1ynien1 h .. ~in,c in1..•lud1~d ns pa.rt of the
O:un:ige r\n1ounL
b. Extensio1LJ>avrnc1JJ. lL til any tin1c fol\o\ving the initi:il construction of a \Velt
l'"ad located 011 the Subject Lands and after 1hc initi~1l rc5toration follo\ving
cln!ling and con1plclion activiucs, f:n(;ana elects to increase the si~c..: of a \Veil
Pad to grcnter than l\\'O 2 acres, En(;;.ina shall pay O\\'ncr, pnor to such
cxtcn$ion, <111 udditionfll r additionuJ ucrc, pror(ltcd for le:•:'> lhnn n
full acre ('"t~xtension Payn1ent''). r n extended \VclJ Pad shall IH)t c.xct:cd six and
on('-holf \6.5) acres in size find sh:1H b{~ n1e;isnre<l frorn th~ crlee<.; (}f 1 ht! rtisll1rhcd
lands, \Vhich 1nay be larger than the flat surf nee of th¢ \Vcll Pad in question.
c. Additional Paj'.!DSXllliJ~101:Llb;.lli Five (~1~~~~11~). \Vell ]>ads n1ay nccornrnodate
as many Wells as is practicable; however, Owner shall be compensated a one-
tin1c pay111ent oi~er \:Veli !Or ~aL:h <u.h.l1ltunal \Vc!l 1H t:xccss of five (5)
Wells drilled on ~ad located on the Subject Lands.
d C'ot1\i5lt}:1!1.!DU 'fhc: F.xtensit'>n Pay1nent and such one-time pay111ent for each
Well drilled in excess of five (5) Wells on a Well Pad, if any, sh'll he paid to
0'>vncr prior to construct1on or extension of a \Veil Pad. ~['he f)nn1agc Amounts
and l.~xtcnsion P:1y1nents sh::dl con$titute pay.incnt ia full by En('ana and its
artiliatcs for all norn1al dan1nges to the ::icrc:Jgc disturhtd by the construction or
ex.tension of \.Veil Pads and the drilling, cornpletion, rc-contplction, rc\vorking)
re-entry~ prodll(:tion, installation, oµcra1ion nnd n1aintc11ance of the \Velis, but
;.:.uch (uuounts shall not be cornpens.:nion for dan1agcs associated \Vith Livestock,
(jn)\vlng Crops or otht:r th.1rnagt:s fur \vhil.:h payni~ot i~ ::.pccif'ii.;ally p1ovided iH
fhis Agrccrncnt.
c. L.illlli..9Ji9!1.!5.· EnCana agrees to c-0ns1rucl nu n1orc than one (1) \\7t:ll Pad per
quarter·qu:irtt~r ;;;ecrinn (40 .. ncrcs. 1norc or less) on the Subject Lands unless lt
n:ccivcs prior \vrittcn consent fro1n 0\vner, \Vhich consent n1ay he cont.litioncd or
denied in 0\.vner's sole discretion.
3. ROAD RIGHT.()F.Wi\ Y.
a. Existing RQ;,c\12. Owner grants to EnCana a non·exclusive access right-of-way
acro.ss the Subject Lands :\long the t!xisting ro:ids that are nlarked 3nd identified
on the attached Exhibit B ("Road Right·of~ Way") for ingress and egress to
EnCana operated Wells and Well Pads localed both on the Subject Lands and
outside the Subject Lands. The Road Right-of-Way shall be approximately thilty
(30) feet in width, being fit\cen (15) feet O\l eacl1 si~of the centerline of the
existing '°"ls. The total distance of the existing roads and resulting Road Right-
of-Way is approximately 122,830 feet (7444 rods). As consideration for the
grunt of thi:. Road H.ighl-of ... \Vuy 1..:uv1,;rinl;'. lht: t..:~i3ting roads, EnConti shall pny
2
.~J?a1c--1T1d, \Vhich the parties 1.1grec equals
---which has alrca<ly been paid to Owner prior to the
cxci::ution 1)f this :\grcc1ncnt. fn special .sltuati~)JlS, ~uch i:is ~mfcty hazards. if
approved by O\vncr. EnCana n1ay construct turnouts o.nd passing Janes 1hat arc in
excess of the thirty (30) foot wide width and EnCana shall compensate O\'f1Cr
-rorntc<l for Jes:-; than u full ucrc) for cuch such inckaSC Jii1hc
~ght-of~\Vay, prior to construction.
b. [ie\\' l<.o.i-1ds. O\.vncr grants to EnC~ana a non-c.xc!usivc access right-of-,vay across
the Subject Li!nds to i:onstrucl nC\V roads. Such ne.\v roads 1nuy only be
constr-uclcd after receipt of 0\vner's consent follo\ving notice by EnCan~1 of the
proposed ronk. fhe nciv roads shall coniply \v\th the \vidth restriction set forlh in
suh;.;cet1on J(a) und sh~1ll be considered a p~1rt of thi.· Ro<1d !{1ght-of~\Vay. If
O\vner grants En(~an-n l · · to construct nt\V roads, EnCana shall p~1y
Owner a onc-lin1c fee 1o<l prio1 tQ \.:OllM(u..::li(nt. 1\ny land adjacent
to a newly constructed or cx1s mg road that is disturbed by EnCana shall be
proinptly J'('seeded ;1n<l n.·storcd, in a<.~cordan<.:c \1,•J1h Sc<.:lion 9, upon eon1plction
of the C<lnStructlon activities.
c. Qn£.Iirn~-~Y1_:Jt_l:_~gJ ____ ;'\fil.::.:.:s:~Em'm~rr!· Follo\viu • the Efft!ctivc l)ate, EnCana
shall pay Owner a on. for each Well Pad tbat is
c-0nstn.1ctcd antJ acces · ' ~o -ay but not toca1ed on the
Subject Lands, wh1Ch payment shall be ma<le prior to construction of any such
\Veil Pad.
d. 1~n1_t1,1_~1.L_~Y~ll Pad 1\~<:e$S. payn1e.1.~1. On the first Pay1nent J)ate (as defined in
SL:i,;tion 31) atlcr l:.\Ccutiv11 of thjs Ag1ccf11c11t, t.tHU ou each Puy111c11t J)ah:
lhcrcafter until final rcclcunatlon of the \Veil Pad s is cornplercd in acct)rdancl:
with Section 9, EnCana shall pay reach Well Pad, located on
or outside the Subject Lands, acccsse< via the Road Right-onVay ("Annual \Veil
Pad Access Payment")_ The number of Well Pads accessed per year shall he
cnl1:ulntcd based on th(· nurnber or \Vl?ll Pads existing on the fJrcvious Po.yn1enl
f)~itc {a;:: definl,.'tl in Sl.'i.:lion 31) plui !hi.! 11urnbl:r of additional \Veil Pads
constructed bCt\Yecn the Previous Payn1cnt fJatc and the Current Payment Date
{as defined in Section 31 ). Prior to its final reclanlation, any \Vel\ Pad that has
been accessed at any time via the Road Right-ol~ Way shall be included in
detcrrrilning the u1nount of the At1nual Well Pad .r\.cccss P~1yn1cnt,
not\vithstanding that such WcH Pad is no longer accessed via the Road Right-of~
\Vay. The 1-\nuuul \Ve!! Pad 1\t.:cc~~ P«)'Hlt:fll sllal1 b~ suhjcet tu lhc ful!ov,.iug;
1. ~la;<1!_1Jt1m.c\nn.u.:1l Access Pa~vent shall the Annual Well
Pad 1\(;t:Ctis Payn1cnt cxccc<l -subject to the Inflation
Adjustment set forth in Section 32.
11. ~Jl.Dllal_A~cess !'~y_ll]ent RedtL~lion. ff EnCana has not constructed any
new Well Pad(s) or drilled any new Wells from an existing Well Pad on
the Subject Lands, or on lands accessed via th¢ Subject Lands, during
any three (3) contiguous year period following the tenth anniversary of
this Agreement, the Annual Well Pad Access Payment shall be reduced
by fifty percent (50%), which shall hereafter be known as an "Annual
Ai;tot:S~ Pay111~J1t ReUuctiu11.H
3
iii. Po:-;l-,•iilllli.& .i\ccesLf:@ll~nl Reduction \Vcll Pnd Cqg~Jruction. 'T'he
1\nuuul 'tV<..:11 P;;1d Ai.;1,;i.;~s Pay111cnt :->lmll rclurn to 011c hund1t:tl pcr,cnt
(100%) if EnCana constructs any new Well J'uds or drill> a new \\/ell
froin an existing \\'"II Pad, oi~ 1he Subject Lands} or on lands accessed
via lhc Subject Lands in any ycnr, utter the r\nnual Access Poyn1ent
Re<luction hus occurred. Subsequently, if EnCana h'1s not constructed
any nc"· \\'ell Pad$ or a lh.'\V \V~H fron1 an <.;xisting \Veil Pad on the
Suhje<:t Lands, or on lands Jccc;;sed via the Subject Lands, during any
contiguous thn.:c-ycar (J) pcnod 1 AnnuDI Access Pay1nents n1ay again be
reduc~d pursuant to subsection 3(d)(ii). 1\nnual Access Payn1ent
R_~ductions and increases n1ay be \)ngoing thereafter, in su..;h a rnannt:r,
until 1enTlina1ion of this Ag_rcc1ncnt.
iv. ,(9_rP.!'!lt;!£1f!l_-lh..tr1ting Susi~snsion. EnC:ana may give 0\\'11Cr \vriitt.:n
notice prior to March I of any year prior 10 the termination of this
Agret•ntent to te1nporadly s11spencl cornrnen::inl hunting oprrntions durlng
the subsequent blg game hunting season for the-ponion of the Subject
I.ands, and lands adjacent thereto that urc leased by Owner, located
\Vithin the original Unit t\n,'.!a fOr 1hc l)oublc \Villo\v fcdcra.l exploratory
unit, in which case Owner shall not conduct commercial hunting during
such periods and shall J1n11t rccri.!uuonal hunting to l)\Vncr·s ta1n1ly and
~ucsts. On the Payment ~such notice, the Annual Well Pod
1\cccssPay1nent ::;hall be-regardless of the atnuber of\Vclb
constructed or accessed.
e. I.~Jn1it~1t1Jse. Subject to O\vner's right to use the Road Right~of~\Vay at any ti111c
for any purpose, the Road Right-of-Way is solely for use by EnCana employees
and contractors for the sole purpose of surveying1 pennitting, explor-at1on,
development and production of natural gas on the Subject I.ands and nther lands
accessed via the Road R1ght-0JC\Vay. This Agreement m no way conveys rights
of access to individuals or parties for any other purpose \V11atsoevcr.
4. Pll'ELINERIG!IT-OF-Wi\Y.
H, Pipeline Riuht:Q.1-:}Y.~. 0\vner grants to En('.ana a non-cxclusi vc pipeline right·
of-\vay ucr.oss the Subject Lands to construct, lny. rnaintoin, operate, or alter one
or n1(>re pipelines, including valves, regulators, meters, separators, purification
equiprnen1~ an<l fillings ("Pipciine Righl-of-\Vay"). ·rhe Pifh.'linc Right~of~\Vuy
shall be tilleen (15) feet in wtdth and 'hall include pipelines wilhin b(lth the
"Roadside Pipeline Routes" and "Extended Pipeline Routes" as defined in
suUsr.:ctiun 4(0).
b. pipeline Prgy1sio1'l.s, 'fo the (.·xtcnt possiblc1 the pipeline f()Uh:::; shall run parallel
to the Road Right-of-Way and the actual pipelines shall be built outside of the
thirty (30) foot width of the Road Right-of-Way, but not more than thirty (30)
feet beyond the centerlillc of the road Righl-ol~Way on either side of the road
Right-of-Way (a "Roadside Pipeline Route"). The approximate pipeline route
must be approved by Owner prior to construction. EnC;nla n1ay inst~ll up to five
(S) separate pipelines .in the Pipeline Right-of-Way. Notwithstanding the
fOrcguing, Jue to lupographical or other surface c::oristrnints, the pipelines n1ay be
4
c.on:;tructcd \Vithin and underlying the J{oad Right·of-\Vny \Vith the approval of
Owner. EnCana shall bury the pipeline(s) with a minimum of thirty-six (36)
inches of soil fron1 the top of the pipclinc(s) to the nonlKd surface of the grour.d.
EnCnna n1ay also select pipeline routes acro:s,s the .Subjtct Lnnds in nn:as outs1J1..·
the Roadside Pipeline Route (an "Extended Pipeline Route") upon Owner's
appn>val prior to constn.Jction nt' the pipeline. An Extended Pipeline R.outc $h;\!l
be no n1orc ihnn iil"tecn ( 15) tt~t \Yide. /)uring the period or pipeline
.:unstruction, EnC:tn:; <1.'.dl h<ivc thi:-right to ternpon.irily use -<1n <.1dUititJn-,ll strip of
1"1nd filly {50) t'et!t \\'Ide adjacent to a Roadside Pipeline Route and Extend~d
Pipcllnc Roule, unless EnCana ts activities 'vill interfere \'>·ith irrigation ditches,
:;tre:uns, creek~. or ()\vner's aclivi1ies or i1nprove111ents
<;, Icm1lQt<l:.tf .... ~1,,1_rf~-~~-J-~.in..9..;.~. t-:n<.:anu shall al5o have the nght to instnl I temporary
p1peline(s) on the surface of the Subject Lands and within a P1pcline Right-of·
\Vay, provided that c;:1ch such tc1nporary surface µipchnc ts rc1novcd and/or
buried \\'ithin three (3} years after th~"! date of its installation. Nohvilhstrinding the
forcgoing 1 any .surface pipeline on tht: Subject Lands \Vithin the \Vest Fork of
Parachute Creek or it~ drainages 1nust he approved by Owner, \\'hich approval
n1ay be: conditioned or \Vithheld in O\vner's sole discretion. Any tc1nporary
surface pipeline shalt be buried anywhere ic crosses a road or arable field)
including seldom used t wn-track roads that are identified by Owner prior to
construction. If any tc1nporary surti'lce pipeline. is not bl1rietl or rcn1ovcd \vithin
•
years fron1 the date of it~ final instnllatit)/l, EnC'nnn. sluill pay ()\VrH~r
l1L'f day per pipclint:, until lht: pipt.:linc(s) is buried or rctnovcd, \vhich
ot begin to nccruc until thirty (30) days at!er 0\vner has provided notice
to EnCana to bury or remove such pipclinc(s).
d. Rcstorntion. Within six (6) months after the complclit>n of the installation of a
pipeline, or any other disturbance to the surfricc of a Pip~line J~ight-ofw\Vay, the
suriac~ of the !an<l disturbed by such installation or ofher disturbnncc shall be re
contoured, re-vegetated, reseeded und restored .as closely as practicable 'to its
prior condition, all at EnCana' s sole cost. risk and expense.
(', c:onsi<lcration.
i. ]'or Roadside Pipeline RO\!L~>·
1. /\longji><isting,J<.o_gds. As consideration for the Pipeline Right-
01cway along each RoadsKlc Pipdme Route along an existing
road as described in subsection 3(a), EnCana shall pay Owner,
prior to construction of the first pipeline in such right·of~way, a
~3yme1n of-. jrrespective of \Vhcthcr such pipeline
1s j1Crmanen~.
2. .ti£Jyly Constructed Roads. Consideration for a Pipeline Right-
of-Way along a newly constructed road as described in
subsection 3(b) per rod paid for
the Road Right-o -'ay, and no additional consideration shall be
paid.
5
ii, f2L¥.~J.s:11~ir:d Pipcllne Rot11es. As consideration tOr the Pipeline: I<.ight-
of-\Vay along each Extcn<lcd Pipeline Route, EnC:ana shall pay O\vner,
p1ior lo l.:tHl'$lll!t:tiun uf thi.: fir:-:-t pipi;;Jiut: iu ~ut:h Right-uf-\Vay, a Ollt.:-
timc payn1ent of-per rod, regardless of \vhethcr such pipeline is
pennancnt or tern~
111. F~2r_.ljne5 JD1t!!lt;'~L~1rire TlE!~l__,Fi v~_ Y£i~r.~ .-\_ft~r.. Jxu~.i.:1l.JJ1iita:1 iatt~?l!-'I 'he
c.onsldcrilhon in subs.,,--:ction 4(d)(i) tlnd (ii) .":lh;')li inchl(k: nll pipeline.-;.
installed \Vithin fi\'C (5) years after installation of the first pipeline.
llo\vever, if EnCana adds adciitio113\ pipelines '\'lth1n a Pipeline Right-of-
\Viry inon:: than llvt'.' {5) years after the inlti:il installation of a pipeline
within the Pipclrne R1ght·of-Way (subject lo the live (5) pipeline
restriction in subsection 4(b)), then l'.nL'ana shall pay ()\vncr a.n
11dditional consideration nf-1cr rod for each additional pipel inc
insudkd in such H.ight-of-\Vay.
f ~J:!!JjJj_gpJl [):tl]]f!E.~~-No ndditinn~d cnnsi.:h~r:11io11 lvill br due if EnC~~1na buriC$
any tc1nporary pipeline unless the pipeline is extended in conjunction , .. vith the
hunal prei:-css. In such <:asl; En(';u1a 'vill compensate Owner tbr addition:il rods
at the applicable rate in sub:;ection 4(e). Any and all surface d~nnagc cnuse<l by
pipeline constn.1ction 1 burial or ren1oval 1 including construction~ burial or
rc111oval ot ten1porary pipelines, shall be restored in accordance 'vlth Section 9.
5. LIVES fC,)C'.IC l. ••;,t,t~
n. E~J!gj}Jg. 1\11cquiprnenl01· npJHl11(..'r\~1nces to any pipelines, facilities) or \Velis that
arc above the surface of the ground shall be installed in a tnanner to protect the
livestock of Q\i,.·ner or O\vner's lessee(s). During construction of ony pipelines in
the Pipeline Right-otCWay, EnCana shall not maintain over onc-half(l/2) mile of
continuous open trench if live,stock are present in the. area. unless tcn,porary
fencing i.> installed around the trench lo prevent access thereto and appropriate
Ji vi.;stock erossing o.1n.:as nrc created ns dctc:rn1int.:d by (),vncr. If, us detcrn1incd
by Owner, EnC:11nn has bn.:achc<l lhis suhsc<.:tion S(a), and has not corrected such
breach to 0\vncr's sat1sfacllun 'vilhtn five (5) days of receiving notice per
s.ub!;ection 37(a) fron1 0\vner of such breach, ·EnC'ana shall pay Owner a penalty
of~er day until EnCana con1plies \Vi th the fencing requiren1cnts or this
subsection S(a).
b. K.~locmion of Ljvcstoet Owner shall notify EnCana seventy-two (72) hours in
advance when Owner desires to exclusively use any road on the St1bject Lands or
adjacent leased property from time-to-time for periods of up to five (5) hours to
rclocaic livcst(>ck. EnCana shall make reasonable cftbrts to accommodate
Owner's operations during such use periods, subject to EnCana's need to use
such road for cn1crg.cncy -Or \veil control equipment. EnC:ana shall be responsible
for providing Owner adequate access to its pastures at all times. EnCana will
provide a route of access around any \Vell Pad that inhibits the llo\v of livestock
so the livesto.::k and (1v.11tr's v;;:hic1es \\1ill not have to cro~s the \V~ll Pad <luring
drilling and completion operations.
c. Damages. Owner shall be compensaied for any of Owner's or Owner's lessees'
livc~toc:k that, in O\vU<:r's upiniun, <trt:: iHjun:tl or kill~d Uy the llirt:l.:il or intlin:::ct
6
::tclio11s of EnC.:<nui or its en1ployccs, contfa.:tors. stib-contractors, a.gents, bu.siness
invitees or other visttors. If nn anl1nal is injured, EnCana, in its sole tliscretion,
sbaJJ citht~r (i) pil)' Q\\lllC! lhc: Vfh:!iHUI iall, llH,;<licaJ Of udJt:r Cl..)51!> {(.} rchJbiJit<ltC
the-injured animal, or (u)'rtflbursc 01,vn~r the value <>f the animal according to
the following scheduk. lf"n animal is k11lcd, EnCana shall reimburse Owner !he
value uf thi: aniinal. '" ithin thirty (30) days of tht evellt. ai:c1)1<li11g to tlie
fol!O\Vir.g schedule.
1. IfQG'.i.~.§: 'fhe 111Hrkct \·aluc fin that aniinal ~s provided to EnC~ana in
\Vriting by Chvner in accordance \~·ith Section 31. or at the tin1e of the
horse's purch<lse l>y O\vner if act1uircd fullO\\'inµ, the 1\nnual Payn1e1lt
l)a1c; provided. hO\\'C\'L'T. if O\rntr has not providctl En(~ana \\'ith the
1nnrk~ (:1 hor~~. the n1arkct v·.iltte of such horse shall be.: dcc1ticd
tobc-
ii. -(Q~V1i...an9 ___ X.~Pxl.i.HfL. He.ifer~.: Replaccinent cost of a bred heifer or
\Vhkhev~r is greater;
lll. .C£~1Ys~: !i.1arkct \'tiluc -0f700 !b. calf or-\vhichcvcr is greater;
iv. yggi:lli>LS.t~!'r.s: Markel vuluc of 900 lb. yearling or ._
\Vhichcver is greutcr;
v B.h!.11.s:-or the acquisition price for that animal 1 \Vhichcver is
greate~
\'I. ()q:er .. Oo1.r!e.::;!i_1.:ill~.~J Livcstuck: ct1rrc1H n1arkct price or the acquisition
price lOr that nni1nal, \vhichcvcr is greater.
6. GROWING CROPS. By making the payments described in Scclum 2, F.nCana .,hnll
have fully eompcnsulcd Owner for all damages to 1he Subject Lands associated with a
\V·:ll Pad, except fOr pern1o:nent or temporary dn1nagc tn kinds snitah!e for gro\ving crup.s
such a::; hay, alfalfa or \)thcr ... nlcab!e species. For 1hc annual crop production Jost dudng
the preceding year, EnC:ana shall pay 0\Vncr, on !he Pay1ni:11t l)ate each year, an annual
sun1 eqtinl to the current market piice of the crop fot thl.! quantity of the crop os
dcteffilincd by Owner. The quantity dctcnnined by Owner shall be reasonable and in
:1cconJancc with cun·ent y(';ir output of sin1ilnr crops in the i111n1cdiatc vicinity of the \Vcll
Pad in question. Such annual payment shall cease upon linal rcslorution Qf the Well Pad
in accordance \vilh Sci.:ltUJJ 9.
7. IHM:\GE. II~ by reason of EnCana's operations, there is damage to any personal
property -0fO\vncr or O\vner's surface lessees on the Subject !_ands, or there is damage to
!he snrface of the Snbjcct Lands caused by the negligence of EnCana or any unreasonable
use of the Subject Lttnds by EnCana that ia not n33ociat..::d with rcL1sonnblc and nonnul
drilling, completion_, re-completion, reworking, reentry., production, maintenance and
operation of n \Veil. ~uch as. hy \vay of cxainple and not hnntation, Uan1age to structures,
fences, gates, crops, culverts and ditches, such da1nag,c shall be rcpairc<l or replaced by
EnCana, or EnCana shall promptly pay Owner for such damage. EnCana shall not alter
the natnr:al f1o\v of ~ny creeks, stream.<;.1 or irrigation ditehes on the Subject Lands. As
more fully described in Section 12, EnCana shall be solely respcrnsible to Owner for any
7
and all dan1age to any springs, \Vater sources or \vatcr rights on the Subject l~and$
rc"uhing fro1n En(:'ana 's operations under this Agrcen1t:llt.
8. R.ELE1\SE. l~xcepr as c1the1-..visc provided In this ./\grt?cn1cnt, O\vncr, for itself and it~
succe='sor.s and assigns, does hereby ri:!euse, r~linquish and discharge EnCana, its
o.Hilintes, succt!ssors and ti:;sign::; fi·o1n nll c1ai1ns, dernonds, du1nagc:; o.11d ~nuscs of action
tbal O\\'n~r n1ay have by reason of the drilling of the \Veils ~:nd ::ill other dJniage or injury
to the Suhjc(..·t L;1r:d:> caused by ihc drilling. con,pletlon. re~con1pJction, reworking,
reentry. pro~!uctiun. opcrJtion, and 1naintcnuncc of the \.Veils, and ()\\11er accepts th~
!)::image 1\1nount$ and Extension f>ayrnenrs as full con1pensation for such darnagc or
injury.
9. RE~TORATIO:\ OF LANDS. Following EnCana·> (1) completion of the drilling and
completion actwities at a particular Well Pad or any portion thereof not needed for
operation of existing nr pleinncd \Vcll(3), (ii) pcnnn-r1cnt plugging <>f nll \\lcllJ on n \.Vcll
Pad, or (iii) the abandonment of all or portions of a Pipeline Righl-ol~Way or Road
R13ht-nf-\V:"1y (111div1dunlly "Hc,~l:imntlon J·:ve.nl(s)''}. the portions ofihe SubJCCt Lnnd-;
which have been disturbed by EnC:ana's Well Pad, Pipeline Right-of-Way or Road Right-
of-Way and that arc no longer necessary for EnCana's operations, slrnll be re-contoured,
re~vegctated, reseeded and restored as closely as practicable to their condition prior to
disturbance by En(:ana ("Recl<nnation''), ~it I at EnCana 's sole cost, risk and expense.
a. Ftna.L Rec_!an1ation <)Qligntion. EnC'ana ~hall restore the surf nee of all disturbed
areas 1n nccordnnc~ \Yith lh¢ rules and regulations of the Colorm.lo Oil an<l Gas
Conservation Commission ("COGCC"). No trash. litter ancVor debris may he
buried or burned for any Teason~ lJpon final tennioation ofEnC~ana's operations,
Q..,vncr may rcquc~t culverts and 1Cncing to be left in plucc, in \vhich case such
improvements shall 1hereaftcr belong to Owner. EnCana shall 1101 be reqoircd to
rcclt1i1n the cxis1ing roads sho\vn on Exhibit B. EnC:ana sLall rnakc a goo<l faith
effort lo commence Reclamation within one (I) month of each Reclamation
!went and shall complete the Reclamation within one (I) year or each
Rcclarnalion llvcnt. EnCana's H .. c~la1Hation responsibility shall be ongoing ~n<l
shall continue t.:vcn alter tenninahon of this Agrecn1ent, until o ... vner provides
EnCan~ \Vilh a \Vrillcn release of lhe Rcchunaliun re8ponsibility, or five (5) years
fron1 the Reclamatlon Event, \vhichcver occurs first.
b_ .t\~.:-~i,r.rHH.iQtt ... nt R:,.~~'.htn1ation Obligqii!m.__hy Q\vncr. Notv:ithstanding the
foregoing, at any tin1e follo\ving the Rcclan1ation Event, O\vncr n1ay advise
EnC:::inn that Owner desires to take over n II or portions of th\: Subj~ct Lands
affected by such Reelanmlion Event and maintain and as,;umc responsibility for
all Reclamation associated with such lands.
c. Restoration Pen.QJ..L\~ .. Fecs. O\vner may provide \Vrittcn notice to EnC:ana that
Eri('ana h~1:: not n-\adi;-a. good faith effort to timely c-orrnnen.cc and coni.plete
Reclamation in accordance with this Scclioll 9. in which case EnCana shall have
thirty (30) <lays to u<lhcrt:, in uctail, to the >pcciGc, uf thi> Section 9. ff EnCana
does !lot comply with this Section 9 before the expiration of such~ day
period, EnCana shall be obligated to pay Owner a penally fee of-per
day for each day or non-compliance tor each separate Reclamation Event.
8
10. OPENING AND RESTORATION OF FENCES. Opening and restoration of Owner's
t(·nces shall be n1adc at EnC:ana 1s sole cost, risk an<l expense as foJIO\VS:
a. "H..:_~]Jra~. Prior to cutting ()\vncr's !tnces. at each fence opening EnCana shall
tie the cxistrng fence into a three-post"'!!" brace built pursuant to tbc following
~ptl.'.ifications:
1. EnC':.tna shal I l1sc drill st·~nl or con1p(lrahl~ pipe of at lc::i$:t h\-"o ~ind SC\'en-
cighths (2 7!8} inl·h dian1ctcr set in concrctt3 for 1--I-bracing;
11. JI-braces shali he at least fony·t\vo (-<12) inches in the ground. shall be
braced to take the strain: an<l
Ill. (:enter cro~~es shall Ix:: placed a 1ninln1lnn of thirty-six (36) Inches above
thi.::: g101..1t1i:L
b. Sta):~. EnCann sh:;ll in;:;tall fence stays evel}' four (4) feet 111 a!J tc!'nrx>rary gates
installed in O\vncr's fences.
c. Pitt.and ()ther Excavations. EnCana shall build te1nporary fencing around all
drilling and completion pits. Such fences may be <>f materials chosen by EnCana,
hut :.-.h<lll includi:.: "l {" bn:u;c~ ul. t:orncr:-., !iv<:: ::;lnuith; of \Vi1c, and poSl'.i no rnorc
than tif\een ( 15) ftet apart, unless otherwise requested or approved by Owner.
EnCana shall nlso place panels sufficient to keep out livestock around any
tc111porary excavations during EnCana's drilling. con1piction or production
oper3tions for the \Veils.
d. PennancntJ~~-[l_<;_~s. Upon con1plction of drilling 11nd co1nplction of th~ \Veils,
EnCana shall pro111ptly rebuild permanent fences h1 a condition equal to or better
than any fences damaged or removed by EnCana. EnCana shall use I -3i4 inch
staples, cedar wood posts, and CF&J barbed wire to rebuild Owner's fence(s).
Experienced fence builders shall do fence replacement and sh<lll consult 'virh
O\vner prior to and <luring rcplacen1cnt.
c. &,~_pL~seme!!i.E~P_ingii. No fence shall be consid-eri;;d to be in a condition cqu~ll to
()\vner's exis!ing fence if the posts ha\·e been undercut or brush has hc1.:n ::;hoved
into su~h f.;nc.c. Jf EnCana has disturbed the ground. p]o\vctl mud, or added
other material within three (3) feet of a fence, Owner shall determine, in its sole
di$crction, \Vhcthcr n nc\V tCncc must be C\)llStructc<l to replace the existing fence
at EnCana's soloe c.\pensc.
f. Callie Gumd§. If requested by Owner, EnCana will install caule guards of
sufficient size and substnnce to bear EnCana's tratlic and to tum all livestock.
Such ~nttle guards sh oil not b~ installed \vithout 0\Vner' s prior \\'Tittcn approval.
and shall be installed in such a manner so as to prevent water draining into the
catlle guartls, an<l al a heighl so lhcy are visible to livestock froin a reasonable
distance. EnCana shall assume all liability for any animal that becomes
entangled or injured in the cattle guard and shall compensate owner according to
the schedule in subsection 5(c). i\ny cattle guard installed b)' EnCana pursuant
to this subsection l O(t) shall be cleaned and otherwise maintained by EnCana.
O\vner approved pipe gates shall be plnced adjacent to nnd on top of all cnnlc
9
guards so that li,·estock can be moved through the fence and/or can be turned
\Vithout injury 'vh'.!n n1oving in large groups or \Yhcn influen<:ed by inclen1cnt
\\'Cather.
g. Open Gut<;:~. En.C.ula sha U be rcsponsiblc for prcvi:-nting O\vn~i-'s liv~stock fro111
e:~;cuping ti·on1i or cnubling li'\'C!;lo~k ol oth<.:rs fro1n c1ncring through, nny fence
openings resulting froin the sur;'cy1nr. pn>dn!hng, dnlling, cornplet1on, re~
eornp!ttion. rc\\'(n kinJ!. reentry. production. operation, and maintenance of th~
Wells. If a gate is left open, EnCana shall be responsible for the cost involved m
gathering ::tn~ li\·estock tbat escaped. 1·he r.are shall he -pG>r hour p.cr
co\vboy ne<.:di:d 10 recover any escap1.:d livestock, plus rc1n1burscn1cnt tor
dan1aµes. [fit is det(;rn1incd that the livestock cannot be recovered \Vithin a cost
c ft{;ctivt ai:)i)unt of tlln.;;, .Enc:~1na siKll i h:1YC Ill.:: l)ption er compensating ()\vner
!{n lh~ aclu~il loss incurred due to the loss of the livestock. as dctcnnincd by
O\vncr, instcu<l of attc11'lpting to recover the livc:>rock, in 'vhich c::i.sc $.uch
payn1ent $hall be baf>cd on the an1otuJts set forth on the schedule in subsc.:ctlon
5(c).
It !S~J?l!tccrncnJ_Cii1.l£.§. EnCana shaH install ()\Vner approved pipe gates nt nil points
\vherc: Encana 's actions necessitate replacing or \Vidcning the cxisling opcnlng In
a fi~nc cl inc or creating n HC\V opening in a fc11cclinc.
1 l. PROHIBITED PUBLIC ACCESS.
a. EnCana shall cooperate with OM1er to prohibit all public access 10 the Subject
f ,.nods frorn the rei1l pri)perty no\v otvncd by EoC'nnn <1nd formedy known ~is the
'"llnocal" propt'.rt)' located in T.J.S.R9<1\V ~ind 'I'.'iS-R96\\', Such c:oopenHive
efforts shall include, but 11ot be limited lo, the installation at EnCana's expense of
locked gat~s \Yhcrc existing roads provide access across the Unocal properly and
onto the Subject Lands in Sections 5, 8 and 17, T5S-R96W.
h. lJpon 01,vner's \Yritten request t.luring the Colorado big gantc hunting: season.
EnCana shall lock all gates on the Subject Lands. fn addition, UpQli O\vner's
''-'ritten request during the ColoratJo big garne hunting season, and if EnCnna is
engngl·d in drilling Hn<l con1pletion activities <it \Velis subject to this Agreement,
EnCana shall provide sec urily control at the beginning of the Sre,vart (julch R.oact
at its intersection 'vi th County lload #5, nnd at future locations, as detern1incd by
Q,vner. \Vhcre ne'v access points to the Subject Lands or adjaccnl lands have
been creat.ed by EnCana pur~ua.nt to its operations here11nder. Snc:h s1•r11rity
control shall include mon1tonng and recording all traftlc) including t1111e of entry
and c~it, an<l 1nuintcntn1cc of any otbi..:r n:i..:ords n.:quc:st.:d by 0\vncr. 'fhc
rcquircincnt fr)r security control shall cease upon EnCana 's cc:ssatiou of accc:s~ at
the designated location.
12. WATER. If any surface or underground water source located on the Subject Lands
identified on Exhibit ll (which may be modified upon discovery of additional water
sources from time to time), as well as any decreed water right owned by Owner, is
located within one-half (112) mile from any Well, EnCana shall hire and pay a third-party
cxpt·11, mutually agreed upon by the parties, to test the amount and watcrqttahly of such
water sourcc(s) both (i) prior to EnCana conducting drilling operations and (ii) upon
co1nplction of the Well as a producer or dry hole, In the <:vent such test r<:sults conftnn
10
(in the sole opinion of the third-potty expert), that :iny such water source wos
cont;uninutcti or dan1ag~<l by EnCana's operations, EnCana agrees to either (i) drill a ne\v
\Vater \Veil at EnC~u1a's cxp..:nsc, or (ii) provide O\vner a replacen1cnt \Vater source inn
likt.: vuluH1c lo :.;ui...:h J:.unagc:U wutcr ,\ouri..:c, nt lht ::;ouri.;~ or ~l tt n1utually agr<.:1-:<l location.
ln additlon, EnCnna ~h;1ll bi: n.:c>ponslb1c for annual operating and n1aintcnancc costs (in
excess of any costs attnbu!nhlc to the \Vater source prior to the da1nage) for so long as
such \vatcr source is used by O\vner. Or, at EnC:ana 's 01)tion. EnCana tnay pay ()vvner a
onc·1i1nc cash. scttJcn1cnt <.:qual to the cstiinatc<l present value of such annuai opernting
and n1aintcnnncc c-0sls for a f\vcnty~year period of use as calculat¢d by a third~party \Vith
l!xpcrtise in \VJl\:r n1attcr$. n1utually agreed upon by the p::uiics. irtf:un11 shall begin
construction on any nc\\' 'vatcr \Yell or source, a':i the ca:;e 1nay he, \vithin sixty (60) days
of rt?ccipt of 1hc i:xpcn's rcpon of co111;u11ina1i<,1n or datnage 1 and shall con1plctc such
construction \Vithin six (6) 1nonths.
13. \V,\~rEil TR()UCJIIS. Upon (),\·n<'r's rcqocst, En('.an.l ;;hall place. at EnC:an:i'"' ~xrense,
O\vncr~approvc<l \Valer troughs of at least 1,000 gaJlon capacity un or near each of the
\V\;ll Pads at n1utually <tgrceablc locations tlu1t do nt>t interfere 'vith En(~ana's operations.
EnCana shall not be obligated to provide \V3ter to a trough unless. as part of EnC:una's
operations. \Vater is being diverted or conveyed to the \Vfll Pa<l in question, in \vbich
<:nsc such diversion or cunvcy<Hl.C~ n1(:thod shall be us<.·d to fill the trough, at EnC:ana's
expense: provided, however, that (i) EnCana shall not be responsible for the quality of
any such \Vatcr diverted or conveyed, and (ii) O\vner hereby assurncs nll risk .of use of
<iny sut:l.wat \:ciieJ or conveyed, EnCana shall be rc~ponsible for no n1nrc;: than a
1otal of for the \vater trough~ \\'Ut('r diversion rnotcria.ls, \Vatcr lines and \vatcr
pipes per\ ell Pad. Owner shall be responsible for any governmental permits rcquirc<l
for the provision of \Vater tu the troughs and the location nf f-;UCh trnugh:", and sh;i1J
n1aintain the troughs and the source of\vate:r to such trn11e,.l1s (11n1i'.<..:S FnC:ina 1-_; providing
the \Vatcr as described above) in a 1nanner !hat docs not interfere \·Vith EnCana':;
operotions ot ea~h of the We11 Pads.
14. WEED CONfl(QL. EnCana shall be responsible tor controlling all noxious wee<ls on
any Well Pad, Road Right-of-Way and Pipeline Righi-of-Way. EnC:ma shall also be
responsibJ~ for prcvci1ting such noxious \VC<:ds fron1 spreading to Subjc-ct Lands adjacent
to any of these areas.
a. t}_~j.?S .. ~nt .. A_1sa_~, Jn the event such noxious \\'¢eds spread 10 adjacent areas of the
Subject LJnds, EnCana shall be responsible for controlling the noxious \vcc.ds on
those ·1ands us ":ell, provided that such adja<.:cnt areas of the Subject Lands \Vere
free of suc11 no:·dous \veeds prior to construe Ii on of rht• \\\~ll Pad, Ro:\d Right-of.
Way or Pipeline Right-of-Way, as the case may be. If the ad;acent areas of the
Subject Lands \\'Crc nol free of s1.1ch noxious \'>'Cc<ls prior to such construction,
EnCnno':; n.::1ponscbility shall be li1nircd to r1.:,1sonablc C(}ntro1 of such noJ::ious
weeds only on the lands that comprise the Well Pads, Road Right-of-Way or
Pipeli11e Right-of-Way.
b. Weed Control. If EnCana locates, or Q\vncr notifies EnCana in \Vriting of the
localion of, noxious weeds on any areas subject to this Section 14, EnCana shall
irnplc:n1cnt control procedures before the noxious wcccts go to seed.
c. Tenn of Responsibility. EnCanu's responsibilily for noxious weed control under
lhis Section 14 shull be ongoing and shall continue even after a Rcclamntion
11
Event until such ti1nt: as O\vner provides EnC.'ana \Viih a \vrittcn release or
En(:ana's further obligation to control noxious \\'eeds on the Subject Lands or
five (S) years fron1 ibc Reclan1::ition Ev;,:nt, \vhi<.:hcvcr o~\.:urs first.
15. EROSION CONTROL EnCana shall be responsible for controlling all erosion of soils at
1he Well Pads, Roatl Rights-of-Way, Pipdrnc Rights·ol-Wuy, an<l on lamb a<ljaccnt to
the Subject Lands that is caused by the activities of EnCana or its employees, contractors,
£Llh-r;ontr::ictors, or ng~~nt>;., Such erO$iOn control ~hllll ln<'hHl.:•, \vithout lirrlitation, re-
contouring, '.'i:~ccding and re-vegetating such !;'Inds and restoring any reser•oirs or
\Vatcr.vuys to th~ir prl.!viou:; quulily anti cupacity. EnCana's responsibility for erosion
control pursuant to this Stction 15 shall be ongoing and shall continue even after
1cnninntion of EnCana's use of the Well Pad, Road Right-of-Way, and Pipeline Rigllt-of-
\Vay~ until su(;h tiinc as 0\vncr provides EnCana \vith a \vritlcn rclca$t.: of EnCf1na's
further obligation to control erosion on the Suhjcct Lands or five (5) years from the
Recln1nu1ion Event. \vhicbcver occurs firsL
t6. MAINTENANCE, DUST CONTROL /\NO SPEED LIMITS.
a. R,epair of lrnprovcn1~U!$. 1\ll O\vncr's curr.:::ntly existing access roads, fences,
cattle guards, and gates 1111pact.:d by EnCana's \Vell Pads, Road Rights-of-\Va.y
or Pipeline Rights-of-Way shall be maintained by EnCana in as good condi<ion
as t'.xi:.;tcd at the tiinc of the execution of this Agree1ncnt. Ownc;;:r :-hall give
EnCana \Vritten nolicc of degradation or darnage to such irnprovernenti'\ ruusz:.J
by En{:ana's operations. \Vlthin a reasonable tilnc after such notice (not to
exceed seven (7) days, subject, however, to inclement. weather conditions), if
EnCann foils to repo.ir or restore the roads, fences, (':Ottle guards, or gotes to the
condition <lescribc<l n.bove an<l 0\vnt:r pcd:()fl1)5 ren1ediution or restoration on
such i111provcn1ents, EnC:ana shall rein1hursc O\vncr for all costs a~sociated \vi th
such remediation or restoration within fifteen (15) days of receipt of an itemized
invoice for such \vork.
b. l!11i.L~(~.!8HLQ.l. EnCnna agrees to \Yater ·ro;lds on the Subjc.ct Lands or use other
reason.able 1ncasures to reduce excess dust fron1 road use during drilling and
co111pl..::tiou upclatio11£. Follo\\'iHg tlril!iug and t.:()H!plction, r:nc:ana agrees to
continue such dust control measures to the sa1nc standard as required for roads on
the federal lands which are adjacent to the Subject Lands.
c_ S_ne,_\LLLllli!-EnCana agrees thot the speed liniit on any access road shall be 25
rn.p.h. end it: <>::; dctennin\.'d by Q,vncr, Stl!.':h sp~cd is exceeded by any EnCt11H1
c1nployce, contractor, sub-contractor, agent, business invitee or other visitor,
EnCana shall be assessed a fine of-per occurrence. Any fines assessed
under this subsection 16(c) shall be patd by EnCana on the next Payment Date.
~.~~~v~t'.~~t:~~;~:;~~'-Owner must notify EnCana at any time the total
17. LA\VS, Rl1LES AND Rl~CTlJLATlONS. T~nCa11a shall, al its snle cxpcusc~ l;on1ply \vith
and take steps to ensure its agents comply with all federal, state and local statutes, rules,
regulations and ordinances, including without limitation, those relating to safety and the
environment, that are applicable to EnCana's and/or its agents' use of the Subject Lands,
12
18. DRUGS, ALCOHOL, F!REAR.MS AND DOGS. EnCana shall not allow 1he use,
posscs>:>ion, transfer, purcJinsc or sale of illegal drugs, narcotics. or other unla\vful
;;uhstanccs and 1natcnals by En<.:ana or its cniployees. contrat;tors, suh~contractors,
agents, business invitees or other visitors \Yhile on l11c Subject Lands, ·rhe use,
po3Sl's:;ion, trun.slCr. purchas<.: or sa!c of;.1icohoiic bcvcragt:s, fircanns und other \vcupons
~1pon the Subject Lt111d::; is expressly prohibit<..~J. No do!;S are pcnnitted on the Subj~ct
L~~nds. EnCana agrees to noufy all of 1rs contractors, agents anti <.:rnployel!s or these
restricrions. J\.ny individual who violates this provision rnay be denied access by Ov:ncr.
19. l:\:fPRC)\'E!Y·tEN'l'S. l;pon tt:rrnin:uion of thiB Agrcc1nent, all pcrn1ancnl buildings,
fixtu1cs or i1npro\rcn1cnts pluced on the Subject J .ands, not othcnvisc disposed of as
provided for in this 1\grct'1nent1 shall become property vf O\vncr. No \Vater, rin1ber, rocl<,
dirt, gravel or oihcr Jn:itcrials ('I" n1inerals shall be St}ld or ren1oved Iron) the prcrniscs by
En('.ana or JlS agcnis \Vitbout the prior \Vritten pennissi<Hl of O\vner.
20. NO R!oCREAT!ON. No hunting. trapping, fishing, camping, sightseeing, horseback
ri<ling, use of recreational vehicles, or any other use not expressly allo\ved in this
:\grecincnt, by En('ana or its cn1ployees, contractors, sub-contractors. agents, business
1nv1tees or other v1.s1t<>rs) is pcrn1ittcd on !he SubJCCt Lane.ls, and no such nghts arc
gn1ntcd by this Agreen1ent.
21. ELECTl~I(:.l\L LINES. 0\\1ncr, ~I 0\vni.:r';:,: cxp~·nse 1 shall have the right to <..:onnccl into
any electrical line constructed by EnCana on the Subject Lands. Thereafccr, Owner shall
pny the rnarket nltc for clectricit}' used by 0\Vncr according to a n1ctcr to be installed by
Q\vncr1 at O\vner1s expense, on any structure receiving electricity. If O\\'ncr elects to
t.Xl~rci~e: its ri r,hts under thl;>:: Si~cri(1n ? ! , fhvncr .>\ha II h{· rc's;pnns.ihl~ only f~•r its c.osts
described in this Section 21~ and shall nn1 bi~ rc~pnn...;ihlc fr)r sharing any portion of' the
costs of installation of the nu1in electrical line \vhich is connected to by O\vner.
22. HAZARDOUS MATERIALS INCIDENTS. If requested by Owner, EnCana shall
provJde U\\'ner copies of all Jorn1s, notices, plans, tests or other docun1entation regarding
spills or blow-outs on the Subject Lands that arc tiled with the COGCC. local
guvcrnincnt rcprcscntali\'t, or any other regulatory agency.
2.). VARIANf:f<.S_ A (~opy of <'!HY n'(jllt'Sts hy En(~anfl for vnrinnce. fron) snrfr1ce use or
rccla1nation regulations, not requiring i1 petition and notice co O\vner, shall be delivered
to O\vncr ai the same time as delivery to the CClGCC~.
24. JNSlJIV\NCI~. 1\l all ti1nes \vhile thi5-: r\grcement i_s in effect, and :is in:iy bt nt.:tcss?.ry
for any obligations that survn'c this Agrcc111ent as dcscnbcd in Section J)) l:nCana shall
k..::cp its operations insured, or con1ply \Vith applicable self-insurance la\VS and
regulations, for auto1nobilc~ general liability, and \vorkt11cn's con1pcnsation insurance~ as
well as for any damages incurred on or to the Subject Lands.
25. \<;'AIYER OF WARRANTY OF TITLE. This Agreement is made subject to any and all
existing third-party easen1et11s 1 rigl1ts-of·\vay, liens, agreen1ents, burdens, encumbrances,
restrictions, and defects in title affecting the Subject Lands. Owner docs not in any way
\varrant or guaranty title to the Subject Lflnds.
13
26. WAIVER OF RIGffTS TO CONDEMN. Except as provided in this Agreement, EnCana
\vaivcs any nghts it 1nay have to conden1n ::tdditional eascrncnts, rights~uf.·\vay, or \Veil
Pf!ds on or -r.cross the Su hject Lands.
27. Lti\SED l'UJ3LIC I . .'\";DS. The 1111ivi,iuns or Sections I 0, 14 and 34 shall also apply to
all public lands tho.I 0\vner pre.scn1ly h:~n:cs in Rio Blanco and Garfield Counlics,
Colorado, a-s long as 01.v11er leases such lands and such provisions do not conflict \Vlth
go\:crnn:cntal ruks and regulations.
28. L1ENS. En('.ana shnU, at its sole cxp..:nsc, kt.:cp the Sul:jcct LJ.od:s free :iHd 1.::1L:a1 vC 1;111
liens and cncu1nb1ancc-s n:sulting frorn En(:ann's nnd its agents' activities on the Subject
Lands, anti '~hall 1ndcnu1ify and hold harmless Owner fron1 and against any and all liens,
i.:l:iin1s) dcn1ands, c-0sts 1 and {'xp¢nscs, including, \Vithout lirniration) reasonable auorncy
fees and court costs, in <.:onncction \Vilh, or arising out of, any \vork done, labor
p!..!rfon11.;!J, or n1:lter1nh; fl1n1ish~d.
29. C<)NFJl)Et\'fJ,\LrrY. O\\'ncr \vill keep the rcnns or thi$ Agrccn1ent conlidenlial and
\vill not disclose the smnc to nny third party, except frir distlosure to O\vner's
accountants und attorneys who will also be bound by this obligation of confidentiality.
0\Vll-Cr shall n1ake no disclosures. regarding: the financial terms of this ,\green1ent to its
landlords or lessors for grazing leases, but inay 1nake an)' other disclosures upon
EnCurta 't.1 \\-Titten conscnl, \vhich consent shall not be unrcn::.onably withhc!IJ.
30. O\VNER REPilESENTi\.l1VE. O\vner dcs1&,>natcs l{cubcn G. Ol<lland ;:is representative
("Owner Representative") to receive notices and payments pursuant to this Agreement.
EnCan::i shall he entn!ed to rely on any 1nslrnclinns or illlthoriz;:itions from the Owner
Reptesentativc. No change of Owner H .. cpresentative shall bo binding on E11Ct.u'i<1 until
EnCana has received written nmicc from all ofrhe other parties to this Agreement.
31. l'AYMENT DATE. The "Payment Date" means the first and all subsequent annual
anniversaries of the date or the execution of this Agrcc1nent. 'l'he first Payment lJalc
shall occur on the first anniversary of the execution ofthi~ Aun~t~rnent Within thirty (30)
<lays follo .... ving the l)ayn1cnt Datc1 EnCana shall sun1n1arizc, in the forrn of Exhibl1 D, all
annLHll pay1ncnts rcfCr~nccd in this 1\grccment, as adjusted for iltflntion in accorda11<_;c
\Vith .Section .32, an<l suhn1it 1hen1 tCJ (hvner for approvHL T11c 0\\11er Representative
shall then provide J~nCana his or her \Vnttcn approval and/or objections along \Vith the
party ur 1)arties to \Vhit:h p<ly1nent(s) ~;hnuld b~ 1n;~de, as \Vell as a sCht;dule listing
{)wn.c-r's horse;; and thi,; n1arkct ~"due fur t:ach. EnC'.::ina s.hall rcn1it the arnount O\ved to
the party(ies) designated by the O\vncr Repres~nt::itivc \Vithin fifteen (15) days of hi:.; or
her approval. r\s used in this Agreement, the "-l:urrent Payn1ent lJatc" 1neans the
Payu1c11t Date fur tl11; yi.:ur in qui;stion. rfhc "Previous Pay1nent Date" means the
preceding Paym\:nt Datt;.
32. INFLATION Afl.ll:STMENT. All fetS. Ct>Sls, rentals, penalties, assessments or
payments of any nature described in this Agreement shall be adjusted every two (2) years
to nccount for in-flution. I-3eginning \Vith the pnyn1cnt on the third anniv~rsary of this
Agreement, and every two (2) years thereafter, the amount of ihc annual payments shall
be adjusted according to the then prevailing lntlation Factor ("In!lation Factor"). The
annual increase in the Inflation Factor shall be detennined by the annual Cl'l for the West
region, as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the
14
ycnr of adjustn1cnL A <lefinttion anti cx~unpl<: of the lntlation Factor is provided in the
attached and 111corpor~.1tcd Exh1b1t <.:.
}). TER!'vf. This ,..\grcen1cnc $hall h.':rn1in~1tc <1nd all righ1s under lhi5 1\grccnlcnt shall rcvcn
to O\vner \\'hen [he SubjL'<.'t Lands have not been used by En(~ona or ita ufJili<1tes.
succr~ssors (\T -.is.:;igns for the purpo::.:i.'li di:st.~riOl·d in tbis Agreen1ent for a period of l\;:o (2)
years, subjec1 ro the surviv·al of En(;ana's obligalions dcsi.:nh:.:d else\vhere in this
1"\gn;e1n~11t. 1\ll J~·e;~, pay1ncnts, costs. rcnis and/or other con1pensa1ion shall continue
unabar¢d unrii ~di recla1nat}on ~ff()rtS arc cotnplcrcd. and drilling, extraction) n1aintcnancc
or other :1ctivitil'S not associutt.·d \Vith rcc!atnation of the \\/i..::lJ P.ad(s) have been
co1l1j)lete<l u1 accordance \l/llh thJ$ .'\grcen1cnt. Not\vithst.in<ling the tcrn1inatiL'l11 of this
1\grce1nt.:Ht, EnCuna ::ihall IHJ! be dt:enied to have released the rights it 1nay have UJH.lcr
any t}il ;ind gas lc<1se \v)1ich is s1il! in effect anJ wl1i-ch covers any purlio11 of the Stibjccl
Ltinds.
34. LIABJLltY OF THE PARTIJ.:S.
ft lnden1nity. EnC3na covcnanls and agrees to tUHy defend 1 protect, inden1nify,
and hold hann!css C)\vncr, its ot11ccrs, <lirectors, partners, principals, cn-lployccs
and agents (collectively. "Agents"), from and against each and every claim,
d('mand or c~n1se of ~c!ion and litlbility1 cost andior expense (including but not
li11ii1t:<1.l lo tc;.i~1Hl~1blt· <1lltnn1.'.y ft;t'S ~ind costs incurred in defense of Owner· and its
r\gcnt.s), for dan1age or loss in connection thcrc,vith> \Vhich rnay be n1adc or
<:1ssccted by EuCana, its officc1s) t.liti..:t:tOt!:i, partnt:rs, cn1ployce~: and/or agents, or
which may be asserted by any third party (including but not limited to Owner's
1\gents). on account of personal injury. death or property dan1age caused by,
arising out of, or in any \\'ay incidental to or in connection \vith. EnCana's use of
the Subject L:u1ds or the rights granted under this 1\grecn1e1H, exctpt to the extent
such dan1an~ or injury re.-;u!!s fro1n fhe actions of 0\Yner or its Agent:.-; or such
liability has been assumed by Owner. Where personal injury, death, or loss of or
uanmge "' propeny ts The re.ult of the joint actions or Uv.11er or irs .'\gents anti
EnCana, EnCana'> duty of indemnification shall be in proportion to its allocable
share -0f su-ch action.
b. l~nyi.r.PJlll1-¢J)l•1! C!ill!.n£. lt is expressly agreed that the indcn1nity obligation
described in this Scctiot1 3,1 :::.pccitii..:ully includes, but is not li1nited to> clatn1s
arising under all federal, stmc nnd local environmental laws, rufcs and
regulations.
c. 1'.!l!Si? ivl.'!JfllJ!. Neither party shall be liable to the other for any damages or for
filiiurc to perforl'n its obl igntions under this :\grcc:n<::nt due to fire, earthquake,
flood, \Vindstonn and olhcr hkc casualty or other ca.uses beyond its reasonable
conrrol (including but not limited to inabil\ty to complete Reclamat10n
rc.:;pon.sibilitics due to adverse conditions such as drought; provided, however,
that such responsibilities ,hall continue but with an extension of the completion
deadline), nor for dan1nges caused by public i1nprovements or co1Hlen1nation
proceedings.
35. SUR VIV AL OF OBL!Gt\ T!ONS. All obligations, indemnities. duties, and liabilities
undertaken by EnCana umkr this Agreement shall survive the tcnnination of this
1\gree1nc11t, to the extent dc~crib~d else\vhcre in this Agreement. l~he provisions of this
15
1\gn.:crncnt related to EnCana 's activities on the Subject Lands, including ln1t not liinited
to the provisions regarding livestock, dan1agcs, fences, \Vccd control, and erosion control
shall nlso b-.: applicable during the Rcclan1ation period.
36. NC)N-.EXCLlJSJVE USE A~D RESEH.Vi\TfONS. :\11 right~ gr<1n1cd in this Agre~1ncnt
arl! li1nitcd lo the specific grant(s) dcscrib\:J in this .r\krrccn1cnL Except as rnay be
spccificaHy provided c!sc\vherc in this 1\grecJnent, this Agrc\.'.ment dot::s not, in any \vay~
c(1nvcy any \Yater rights or the. right to u;;c \\'<ltt•r. nor docs it convev <Jn'/ ri!.?:hts to
con~truct n con1prcssor or related facility, or to rnine, drill, re111ovc, process, treat or
produce, in uny \\•ay, oil shnle or other n1inerals not spel.~'iiicatly provided for in thi:>
1\grct:n1cnt that arc located or .may be located in, on or h(:nc~th the Subject l.,an<ls.
O•vncr n.~·5crves to itself and ils S\H.:ccssors and assigns all rights no1 spcclflcally granted
to EnC'ana in this .•\grcc1ncnt.
37. :--:oTrn:s.
u.. R.t.:91ti rcn1~JJ.Ll. \Vh{.'.rcvcr provisi<)n is 1nad,,: in this 1\grcc1ncnt for the giving.
servic·e, or delivc1)' of any notice) .staternent., pnyn1cnt, or other instn1n1entt such
notice shall be given by (i) pcrsonol de!Jvcry. or (ii) United States first class,
re!?ular or certified mail, postng..: prepaid. addressed to the party entitled to
receive the s:in1c. at the address stated in th.;; introductory paragraph; provided,
hov.·cvcr, that e~ch party 1nay chang\! that party's n1::iiling uddrc:;s by giving the
other party V.'riti:en notice of changt: or such address in the n1anncr provided in
this subsection 37(a). Mu.ii sha11 be deemed to huvc been giYcn, served and
delivered upon the fil\h delivery <lay following the date of the mailing: personal
delivery shall be rlec1nerl to have hccn given, ~cr,·c1I llnd d•·live:re:d upon receipt.
b. CQQ ... CX .... t:J,,tjc.e<. If reqllcsted by Owner, EnCana shall provide Owner with a
copy of any '1Chongc of Operator" notice filed \Vith the CO(JCC1 and EnCana
shall provide Owner a copy of any notice tiled with the C:OGCC: regarding public
health, safety, or emergency matters. EnCana shall notify Owner of a spill of
E&P waste or any other substance.
c. ~-.~Y.l\??J1·liction anrjJ~e~~_h_l@!lti<''L"t!ot_iccs. En('.ana ~;hal1 provide 0\vner written
notice of both the :.tart date and completion dntc of fill construc1ion and
recla1nation projects contcn1platc<l under this t\grecment including \Velis, \Veil
Pads, nc\\· roads, ro,Hl cxtcnsioni'. pipelines, pipeline extensions .. tcn1porary
p1pi.::iincs, \Yater \veils, \Vater springs, diversions, restoration, ren1cdiution and rc-
vcgctation. EnCana 's conslruciion, con1ple.tion, t1ndior reclarnation
responsibilities shall not be dcc-tntd to have h•:en cornpkted \VJth\)Ul having
pn)vidcLl sl1ch \.vrlttcn notice of construction, co1nplction an(l/or rcclnut<:ttiou.
d. Fines. Unless o1herwisc provided in this Agreement, Owner must provide
\Vrilten notific~tion to F.nC~tna a mininllnn of fifteen {I 5) days prior to assessing
any fines.
38. AMENDMENTS. ·n1is Agreement may only be amended by the written agreement of
both parties. This Abrrccn1cnt cannot be amended or 1cn11inatcd orally.
16
J9, HEADINGS. Scclinn headings or capttons contoined in this Agreement arc inserted only
as a n11lttcr of convenience and fi)r reti:rcncc, and in no \vay dclinc, limit, <:xtcn<l~ or
d~scribe the scope ofthls 1\grcemcnt or the intent of any provision.
-10. c;ONSTH.UC-rION. \Vhcnev~r n:-qttir~<l by the context of this 1\~ri:c111cnt, the singular
shall i11ch1dc the pllJr:il, nnd vice \'l~rsa: and the 1nascullne gender shi'lll include the
fc1ninlnc and ne1.1t..::r gendel':>i, and vice versa. The provisions or this i\grcc1n<."nt huve
hcen indcp:::-11dent!y. separately and fre<:ly nego1i.:1tt:d by the purties as if <lrafte<l by both
of iht:nL The panics \VaiYc any statutory or com111on h1\v prcsuinption that \Vould serve
to ha\'c this 1\green1cnt con~lrucd in f::i vor of or .against ~ither party.
41, APPLICABLE LAW, ATrORNEY FEES AND DEfr\tlLT. This Agreement and the
rights of !he pa11ics under )i shall b\'.: interpreted in accordance \Yilh the lows of the State
of C:olt)rado, by the dislritt court in the county where the Subject L;:inds :ire loc;Hcd. In
lht: t~ven1 nf any dlspllf.t~. rhe Jlrt~V!1iling p:-trty :;;hall b~·. J?ntitled to recover its n:asonab!c
costs and <.ittorncy fees. including post-judgrnent collec11on co::;ts~ in utli.lition to actual
dan1nges.
~1. h®.Hng:QJJ f,erjtxt. Not,vithst8nding any other provision of !his Agrcc1ncnt, no
litigation shall be 1n1t1atcd by O\vncr for <lan1ugcs, forfeiture or cancellation \Vith
respect to any breach or default by EnC:ana hereunder, JJn!css Owner has glvcn
EnCana thirty (.JO) days v1ritt~n notice dl!'scribing the breach oa· dcfc1ult, and th>:n
only if EnCana fads lu remedy !he breach or default within such thirty (30) day
1i1rn: period. Nt:iU1cr ihe !:it:rvicc of the notice nor the conduct by En.Cana of any
actions to cure or n11cmpt to cure a breach that is alleged by Owner shall be
dccrne<l an adn1ission or prcsuinption that En(:o.na ha5 f~iilcd to pcrforn1 its
obligations hereunder.
b. C!SLLitl}jJati0.r.L0l~/~_cJ.i..<.~Q_~. Nothing in this 1\grcc1ncnt sha11 be construed to lin1it
or abridge a party's right to seek termination of this Agreement upon the other
party's Uefault or a lt.:f!!l Ut t..:Olltlil!Ull dt:si.:11{J(;'d hcr..::in.
t:. Q~'l'!!£1:.ln£!!!I~-9. Lese.LJ£~£.~. EnC'ana shall r~al fCcs incurred by
On.·ner Jn preparation of this 1\grce1ncnt up to-. EnCana shall also
rcin1burse tcgnl fee~. incuITctl by ()\vncr for future ~1n1cndments to this Agrcc1ncnl
tl)Jlo-pci <1111i.:ndrne11t.
42. NATURE OF RELATIONS I HP. The parnes acknowledge and agree that this Agreement
docs not create any special relationship bct\VCen the parties, including \Vithout li111it:11if)n.
1hat of joint vcnltlf\;rs u1 part111.:1.s. Nothing in tlii~ Agn:cn1cnt shall be construc<l as
designating either party illl ugcnt oftbe other.
43, \\',-\[VER. The failure or either pany to enforce any of its rights under this Agreement
upon any occasion shall not be deemed a waiver of such rights on any subsequent
occasion(s). The waiver, either express or implied, by any party of any of the rights.
tenns or conditions i.n this ;-\g:reemenl shnll not be -Oeemed as or constitute a waiver of
any other rightsl tenns or conditions in this r\gree1nent. .Any 'vaiver1 in order to be valid
and effcctj\'e, ruust Uc iu \vritiug,
44. SEVEREAB!L!TY. lf any provision of this Agreement is illegal, invalid, or
1.1nenforccable under present or future la\.VS applicable to this Agree1ncnt. the parties
17
intend rhar the remainder of this ;\green1enl shall rcrnain in full force and effect so as to
fulfill as fully as possible the intent or the parties as expressed by the then existing tenns
of the .-\green1ent, including the inv~did:~tetl provi:;ion.
45. ~vlERGl:El ()f-' PR.l()R 1\(iRJ:.E1VlEt-i'rS. ·11tis 1\g1ec1ncnt coutain~ the .sole and 1.:nlirc
agrcc1nent and understanding of the i.x1rtits "\Vilh rc~pC'ct to its su.bj...-:ct nwtter ;ind shall
~upcrsede al! Prior 1\grcernents. if any, insofar as they pertain to rhe subject n1nnner of
thts ,\grc-en1eut betv-,·ci:n the-parties. 1\ll prior discussions~ ncgotiatirni.t:. co1nmi1nu.:n1s_.
and understandings relating to the subjects of this 1\grccrncnt arc n1crged int<> it.
.JG. !IEJRS, SUCCESSORS AND 1\SS!CiNS. Subject to nny limitations on assignment
prov1c.lcd in th1s r\grcen1cnt, this Agrcen1cnt shall be hin<ling upon an~l inure ro the
benefit of the ponies and chcir respective heirs, successors and assigns. Assigrnncnt by
EnCana of snn1e or all of its rights hereunder shall not releast! En(:nna fro1n liubility
under thi~ Agn:cu1t:"nt, unlc:c:~~ specifically ri:lc:1:;c<l by O\vncr in \Vriting. Any ~u;~igrn?e of
EnCana shalt be required to oblt1in and provide Q\.vner \vith evtdence of' :.i.deqnatc
insur'111i.:t! to <..:ovtr ili;> opera1i1His. <l'> dc~t..:rihcLl in St:t:tion 24, ·.vith coverages equal to or
greater than those of En(~ana in1n1ediatcly prior to the assignrnent.
47. TRANSFER OF OWNER'S INTEREST. No transfer of Owner's interest (by assignment
or othcr\vise) shall be binding on EnCana u1Hil EnCana has been fUmishcd \Vith notice.
consisting of copies of all recorded instru1ncnts or docl1n1cnts and other information
necessary to establish a co1npletc cha.in of record lit le fro1n O\vncr, and then only \VHh
respect to pay1ncuts thereafter n1ude. No other kind of .notice, \vhether uctunl or
constructive, shall be bindtng on EnCana. If less than Owner's entire interest in the
Sub.it:ct Land::; IS !r~1nsfcrrcd. ~uch notice shall al~o specify the 1nethod or apportionn1ent
of all payn1t.:n~;;; to be n1ndc hy EnC<!lHl pursuant to this Agree1nenC No prcs-cnt or future
division of Owner's ownership as to different portions or parcels of the Subject Lauds
shall operate to eula1gc the ol>ligalioH:::. ur Ui1ni11i:;:h the rights of EnCana, and all
EnCnnn's operations may be conducted without regard to such division.
"~b.-EXECUTED this !.L <lay or February, 2005.
OWNER:
Hy:
By:
'
'' \ ·.-'-" .-~· ...... \
Reuben G. Oldland
' ' •\,('. '~ ;.:.{.'-:.'<;-·,
Evn Christine Uphoff
i / !.:
18
By: ____ , _________ ., ..... ···-···-·--·
Gerald A. Oidland
Of.DIA '\!D BROTHERS. INC
By:
'/
//
/, /•.·
Reuben G, Ol<lland
Ifs: Pn~sidcnt
OLDLJ\l\O AND UPHOFF, a Partner.ship
By· -~~-.... ~!·~·'.__~.~~ . ·\~·'. ~~;:::~1;~)"\.:::.~:
R(!ulJcn G. Oldland
fts: General Par1ner
' ;
Date: '/_ i ' • · . ·--··-----L--.L----------Date:
ACKNOWLHlGMENT
STATE Or COLORADO
COUNTY OF MESA
ACK NO\VLEDGM ENT
STATE OF CO LORA.DO )
COUNTY OF MESA
/· f
_._ ...... 2_'._:._; __ :~_: __ :...:_ ---------·--
'l'he foregoing in~trun1ent was ackno\vledged before rni:: on this l_/.JJ1 day of February,
200S by Stephanie D, Oidland.
19
ACKNOWLEDGMENI'
STXIT OF COLORADO J
)
COl'NTY OF RlO BLA~CO
Tht.: ro1 t.:guiag in~!f U!l!Cflt \\a:-> '11.:klluwh.:dgt.:d he Con: tnc ()[J lhi:-.·~--~-~:\h1 y uf Ft:b: ll<ll y'
'.2005 by Eva Clrnstine Uphoff.
STATE Or COLORADO )
)
J\CKNOWLEDGME'ff
' ' ·-·---------·
66-1 !'--~ai:n £-:ti::-cct.
Mcckcr 7 Colo~ado
·~ ! fi 4: l
•.· .~ ·. .,-:-·
COUNTY or RlO BLANCO ) \ \ . . ', ir " ,.,-__
·rhe foregoing ·instru1neni ,vas ackno\vledged be fore inc on this =~-=~-td~)1\)r_~·c:b_;-.l·i_;:1rJ-.
2005 by ·rirnothy Jarncs lJphoff. '"·;
My Con1111ission Expires: Sc.E,t:ember 18 1 200(;
ACKNOWLEDGMENT
STATE OF COLORADO
NotaryPub!ic 664 t~1ain StreE.::t
Meeker, Color·~ao
01641
)
)
f(:
(--""
COU:-.ITY OF RlO BLANCO ) \ ;, ' '
,.. . . .lSti~· ... · •' [ he foregoing 1nst1tJtllCl1t \Vas acknO\Vk:dgc<l be fore lTIC on lhlS ·--· i.Hi)' _ol J•t:l'J(lli:!f)') -.-
:~005 by c:e-r'11d 1\ > (Jlcll:ind '~ .... '•"--
Wly Con11nission Expires: _1_E!.P..!;!:?..:~E..~.1:° ... ~ 18 , 2 0 0 6
20
' I , ,
-~~------,.....---.----. -
Notnry .Public 664 f.'letin Street
Meeker, Colorado
01641
ST ATE OF COLORADO
1• I -· ~i
"
ACKNOWLEDGi\tENT
i
COUNTY OV RIO BLANCO }
'fhe foregoing instru t11en.t \'\'et~ :ickno-..vledged be tOre 1ne on this !_'_i _0_ <la:y of 1:ebrllnry,
2005 hy Reuben G. O!dland as !'resident ofOl<IJand flrothers, Inc.. on bchalfof said corporation.
ACKNOWLEDGMENT
STATE OF COLORADO
COUlHY OF KJOBLt<NCO
The foregoing in:-;tro r11cnt '"'~s t.1ckno,vle<lgcd be fon: tnc on this ,i ~n-t day of F~bruary,
2005 by Reuben G. Oldland as General Partner of Old land and Uphoff, a partnership, on behalf
of said partncrshiv.
tvly t:onu11iss1on 'f.xpircs:
ACKNOWLEDGMENT
STATE OF COLORADO
CITY AND COUNTY OF DENVER
The foregoinJ..';, i11stn.1n1c11t \Vas ack110\vlcdgcd before 111e on this il '\iay of February.
2005 by .. DnµgW. Jones as Attorney in Fact for ENCANA OIL & GAS (USA) fnc., a Delaware
corporation 1l on behalf of sriid corporation,
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!),•.,.-.1/-J\ ~· ,JG~,~;
Notary Public
i'vfy Con1mission Expires:_···~··_ ... ~·;_"''.,_-~'~,"~-"-'-··_
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EXHJB!T A
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EXHJBJTC
DEfll\ffiON OF TllJi INFLATION FACTOR: The Jntlation Fucwr is the cumulative foc1or of
all 1>revious intlntion rntes as defined by the Con~~inn.::r Price Index (CPI) and iJ opplied to each
n·spec1iv1: l_\\'O~yi:·Dr p•·:rind following ihc n1onth ;rnd y._~;ir of !hl~ ErtC~·tivc lh1!c. 'fh~' Inflation
Fuctor is c~dculwh~d by dividing. the C.Pl tUr the 1nonth and year in qu:::stior: by the C'f'l put1L:.l1t:d
in the nionth aIJd vc~rr of lh...? Ef1(:cli\·t l'J'.ttv, ·r1ic in!l::iti(~ll F;~ctor is ~qiplied to c.:ertain annual.
:0ntingent .'.lnd on;.tirne fees. penalties, payn1ents. rents :111(1/or co1npensation rnade to 0\vncr and
[;.: rc:-\'iscU. 1:very l\VO (2) ri:ars. The Inibtion Fal.'tor \vii! first app!y to ihe pj.yn1t'n!~ n1ad(: on the
tlllrd unniv~rsary of the 1'.',ffcctivc [>:He, for charges 1ncurn::d during the t/1ird year of this
r\gn:~lll\.:!ll, '::nJ \Vili u~ H:vi!:>C<l ('.Vt.:Jy l"l.VU (2) yt.:ar:; thcrcuftt:r. En(;una "b'TCCS {0 include an
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A::>~>u1ning that the CPJ for the ycnr nnd n1onth of the EftCctiv\! l)ate is 193.4 und that tht.:: (:PI on
the third Payn1ent Date, three (3) yeaJ's fron1 the date of execution of this i\grccrnent) i'i 196.2,
then the lnllation Fattor for payments in years three (3j and four (4), three (3) and four (4) years
atler the execution of this Agreement rcspcct1vely, would equal ( 196.21!93.4), or 1.0144. Certain
Ices and payments for years three (3) and four (4) should be multiplied by this Jn:1a1ion Fac1or.
F()1' cxa1111'~(\ :1::.-;01ni11g then· ;th~ !l\'1~ (:l) \Vc:ll Pads in operatio~hn:.:t (3),. then tli1:
c0rrespond1ng for Annual 1\cccss Payn1ent year three {3) \vould he-, lnuH1phed by the
(11fli1tJon fa~tor t.:i1k:uh.1tt:d at Iii~ cud ofyt:ur tluc~ (3). 'fhus, iht! rcvise<l Annual Access Payn1ent
would equal r in yeor three (3). 'fhe Annual Access Payment
in year four (4) \.vou ren1a1n unless additional \Vc-11 Pads arc created during year
four (4), \\'hich \\'Ould result in an increased Annual Wc:ll Pad l\cccss P~1yn1cnt under suhs;cction
3(dj. Subsequently, in year five (5), a new lnllation Factor should be ealcubtttl and applied to all
payn1<:nts in yea.rs five (5) nnd slx (6).
23
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Wildlife Impact and Sensitive Area Report
ConocoPhillips Phase II Gathering System
Garfield County Permit Application
Greater sage-grouse, Ce ntrocercus uropltasianus
Prepared for
EnCana Oil & Gas (USA) Inc.
2717 County Road 215
Parachute, CO 81635
Prepared by
Westwater Engineering Inc.
2516 Foresight Circle #1
Grand Junction, CO 81505
December 2007
Wildlife Impact and Sensitive Area Survey Report
ConocoPhillips Phase II Gathering System
Garfield County Pipeline Permit Application
INTRODUCTION
A field inspection of the proposed ConocoPhillips Phase II Gathering System (CoP Phase II) was
conducted by WestWater Engineering (WWE) biologists during September 2007, at the request
of EnCana Oil & Gas (USA), Inc. (EnCana). CoP Phase II is located on both sides of the
drainage divide between Parachute Creek and Piceance Creek primarily on private surface of the
Roan Plateau. The southerly private surface is mostly EnCana's North Parachute Ranch (NPR).
Other private surface is owned by Uphoffs or Oldland's. This phase consists of approximately
21 well connect pipelines, 8 trunk pipelines, and 10 Central Distribution Points (CDP) in 23
sections of mostly private surface in Township 4 and 5 South, Range 96 and 97 West, 61h P.M.
Pipelines 124,317 feet long (23.5 miles) by up to 70 feet wide result in 156.7 acres of temporary
disturbance. Ten CDPs 150 ft x 150 ft add another 6.2 acres of disturbance for the life of the
project. A field inspection of the proposed gathering system and CDPs was conducted during the
period September 5-12, 2007. Surveyed facilities are shown in Figure I, page 17.
The inspection identified appropriate topics for inclusion in a wildlife and sensitive area report
for Garfield County Regulations 5.03.07 and 9.07.04 {10} (Board of County Commissioners
2006). Factors considered include threatened or endangered plants or animals, species of special
concern, Clean Water Act regulated waterways and wetlands.
LANDSCAPE SETTING
The Parachute Creek basin covers approximately 200 square miles and includes much of the
central and western portions of the Roan Plateau. Elevations range from 5,800 to more than
8,250 feet above sea level. Terrain is gently sloping to very steep. Edges of the plateau are
defined by steep slopes and the prominent escarpments known as the Roan Cliffs to the south.
With elevations of more than 9,000 feet and dissected topography of extensive areas of north-
facing slopes result in complex soils and vegetation. From the top the plateau slopes generally
southward and is steeply dissected by generally west-flowing tributaries of Parachute Creek and
generally north flowing tributaries of Piceance Creek. Together, these factors create a rich
diversity of vegetation communities supporting important wildlife and ranching resources (BLM
1997).
The predominant vegetation community in the affected area is big sagebrush (Artemesia
tridentata spp.) shrub-steppe, which is found along stream channels, in valley bottoms and flats
and ridges (Lindauer et al. 1982). Mountain big sagebrush is the most common subspecies in the
affected area and is found on ridge-tops and areas with deep soil and better moisture. Wyoming
big sagebrush is found on coarser soils while basin big sagebrush is found at lower, drier
elevations with deep, fine soils. Big sagebrush steppe forms mosaics with aspen (Populus
tremuloides) woodlands and, to a lesser extent, mixed mountain shrublands, e.g., Quercus
gambeli-Cercocarpus montanus, and riparian woodlands with narrowleaf cottonwood (Populus
WestWater Engineering Page I of 17 December 2007
angustifolia), mountain boxelder (Acer negundo ), chokecherry (Prunus virginiana), and sumac
(Rhus trilobota) (NRCS 2007).
METHOD
The field survey conducted by WWE covered perimeters of facilities and adjoining lands which
were surveyed by foot for vegetation communities and threatened, endangered or sensitive
species of plants, wildlife, wetlands, and waterways and any other natural or man-made features
of note. A few project features are constructed, and, in those cases, surrounding areas were
surveyed.
All woodlands within one quarter mile of facilities were visually inspected for the presence of
raptor nests. Most raptor nests have been previously identified on NPR (WWE 2006).
Any sign, sighting or other evidence of greater sage-grouse (Centrocercus urophasianus)
presence was noted, photographed, and described. Attention was given to monitoring for
presence of other sensitive avifauna listed by U.S. Fish and Wildlife Service in the Birds of
Conservation Concern (BOCC) (USFWS 2002).
Aquatic resources were noted as found. These included any ephemeral drainage-way appearing
to have conveyed water in the past 12 months and regulated wetlands.
RESULTS
Findings of the survey resulted in the identification of several important wildlife and other
sensitive resources. These resources can be grouped into the following categories and sub-
categories: 1) Greater Sage-grouse (GRSG), 2) Other Avifauna (raptors, birds of conservation
concern), 3) Sensitive flora [Threatened, Endangered, Sensitive Species (TESS) plants], 4)
Wetlands, and 5) Regulated waterways [Army Corps of Engineers (ACOE)]. Most direct
observations occurred for GRSG and raptors. The most visible Garfield County species of
statewide significance mapped by the CDOW with relatively high presence in the project area is
the GRSG (Cover Photo and Photo 1).
Other species with documented abundance are red-tailed hawk and Cooper's hawk. Two of
many raptors nesting in the project area along with sharp-shinned hawk, several red-tailed hawks
and a Cooper's hawk were observed during the survey. Most red-tailed hawks encountered
seemed to be juveniles that had not yet migrated with adults at the time of the survey (Photo 2)
with the exception of the adult red-tailed hawk shown in Photo 4. Most raptor nests (Photo 3) on
NPR have been previously located and locations are shown in Figure I, page 17.
West Water Engineering Page 2of17 December 2007
Photo 1, Greater sage-grouse encountered during the survey
Photo 2. Red -tail hawk nest documented by presence of tail feathers beneath
WestWater Eng in eerin g Page 3of 17 December 2007
Photo 3. Juvenile red-tailed hawk above Jack Rabbit Ridge near Kl7-596
Photo 4. Red-tailed hawk encountered during survey near M32-496 north of the West Fork
Table I is a list of wildlife spec ie s that could occur at or near the project features, status in
Garfield Co unty and an estimate ofrelative abundance where found in the county. The data,
o btained from the Co lorado Division of Wildlife (CDOW) County Species Occurrence database,
was extracted and modified by WWE biologists base d on the vegetation communities present at
the s ite and within o ne quarte r mile (CDOW 2006). Wildlife likely present in those vegetation
associati ons durin g at lea st one season of the year were filtered from the county-wide li st.
We stWate r Engineeri ng Page 4of17 De cemb er 2007
Table 1. Potential Wildlife Species Occnrrence Checklist
for CoP Phase II Gathering System area
Common Name Scientific Name Occurrence
Amnhibians
Great Basin Spadefoot Svea intermontana Known to occur
Northern Leopard Frog Rana pipiens Known to occur
Tiger Salamander Ambystoma li$!rinum Known to occur
Western Chorus Fro• Pseudacris triseriata Known to occur
Woodhouse's Toad Bufo woodhousii Known to occur
Birds
American Crow Corvus brachvrhynchos Known to occur
American Dinner Cine/us mexicanus Known to occur
American Goldfinch Carduelis Iris/is Known to occur
American Kestrel Fa/co soarverius Known to occur
American Peregrine Falcon Falco oeregrinus anatum Known to occur
American Robin Turdus mif!ratorius Known to occur
Bald Eagle Haliaeetus leucocepha/us Known to occur
Band-tailed Pigeon Columba fasciata Known to occur
Bank Swallow Rioaria riuaria Known to occur
Barn Swallow Hirundo rustica Known to occur
Bewick's Wren Thrvomanes bewickii Known to occur
Black Rosy Finch leucosticte atrata Known to occur
Black-billed Ma•nie Pica vica Known to occur
Black-canned Chickadee Poeci/e atricavilfus Known to occur
Black-chinned Hummin•bird Archilochus alexandri Known to occur
Black-throated Grav Warbler Dendroica nierescens Known to occur
Blue-winoed Teal Anas discors Known to occur
Brewer's Blackbird EuvhaJius cvanocevhalus Known to occur
Brewer's Soarrow Soizella breweri Known to occur
Broad-tailed Hummingbird Selasohorus olatvcercus Known to occur
Brown Creeper Certhia americana Known to occur
Brown-canoed Rosy Finch Leucosticte austra/is Known to occur
Brown-headed Cowbird Molothrus ater Known to occur
Bullock's Oriole Icterus bu//ockii Known to occur
Bushtit Psaltrivarus minimus Known to occur
Canvon Wren Catherves mexicanus Known to occur
Cassin's Finch Carvodacus cassinii Known to occur
Chukar A/ectoris chukar Known to occur
Cinnamon Teal Anas cvanovtera Known to occur
Clark's Nutcracker Nucifraf!a co/umbiana Known to occur
Cliff Swallow Petroche/idon nvrrhonota Known to occur
Common Raven Corvus corax Known to occur
Coooer's Hawk Acciviter cooverii Known to occur
Dark-eved Junco Junco hvemalis Known to occur
Downv Woodpecker Picoides vubescens Known to occur
Dusky Grouse DendraJiavus obscurus Known to occur
Field Sparrow Soizella ousilla Known to occur
Abundance
Uncommon
Fairly Common
Common
Fairly Common
Common
Fairly Common
Uncommon
Fairlv Common
Fairlv Common
Rare
Common
Unknown
Uncommon
Common
Common
Fairlv Common
Unknown
Common
Fairly Common
Common
Common
Rare
Common
Common
Common
Uncommon
Uncommon
Common
Fairly Common
Uncommon
Uncommon
Fairlv Common
Uncommon
Fairly Common
Fairly Common
Abundant
Fairly Common
Uncommon
Common
Uncommon
Uncommon
Unknown
WestWater Engineering Page 5of17 December 2007