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2.0 BOCC Staff Report 08.02.2004
Exhibits for Public Hearing held on August 2, 2004 0 r eve -44 4' "zSt/7"' A /4o ? .- /06, 01, '. {, h -1 Eu 1- ---I c A to Z) E'iit A MailReceipts Proof of Publication B C Garfield County Zoning Regulations Garfield County Comprehensive Plan of 2000 D E Application F Staff Memorandum G Emails from the City of Rifle dated July 26, 2004 H Email from County Oil & Gas Auditor dated July 22, 2004 I Email from the County Road & Bridge Department dated July 26, 2004 J Encana Water line route Amendments K Letter from County Vegetation Manager dated July 27, 2004 L Approval from West Divide Water Conservancy for 350 acre feet M Letter from the Division of Water Resources to Leavenworth & Karp dated 12/31/03 N Supplemental Amendment to the. Application to the Army Corps of Engineers dated May 21, 2004 Proposed "Ditch Use" Agreement between the Loesch & Crann Ditch Company and Encana P Letter from Resource En ineerin dated July 28, 2004 Jg �` -s�tn.✓ //4/4-c,-irn 5f✓w 1. 4,44,;,.,,., - NN.a-� A-7 ,--c44,-,,,p4/ S 6 t4IPKAI 0 r eve -44 4' "zSt/7"' A /4o ? .- /06, 01, '. {, h -1 Eu 1- • • BOCC 08/02/04 FJ PROJECT INFORMATION AND STAFF COMMENTS REQUEST Special Use Permit for "Material Handling" for an 8 -inch water line APPLICANT EnCana Oil & Gas (USA), Inc. LOCATION From Buckhorn Drive in the City of Rifle in a southeast direction to the Hunter Mesa Water Treatment Facility SITE DATA 5.87 miles of an 8" water line ACCESS CR 319 ZONING ARRD / OS (BLM) SURROUNDING ZONING ARRD / OS (BLM) L DESCRIPTION OF THE PROPOSAL The Applicant proposes to construct an 8" water line and related facilities that will deliver fresh water from the Last Chance Ditch in the City of Rifle to the Hunter Mesa Water Treatment Facility in Garfield County. This water will be used, along with water processed at the Hunter Mesa Water Treatment Facility, for continued well drilling and completion work in the area. The line is proposes to convey approximately 504,000 gallons/day (350 gallons per minute, 12,000 barrels per day, 1.547 acre-feet per day). The purpose of the line is to transfer water more efficiently while reducing the reliance on heavy water hauling trucks in the area. The water line will cross seven private properties and two tracts of public (BLM) property. This proposal will eliminate the trucks that are presently pulling water from the Last Chance Ditch on County Road 346. The proposed pipeline will begin at the proposed pump station located at the Last Chance Irrigation Ditch at 700 Buckhorn Drive in the limits of the City of Rifle. The EnCana River Water Pump Station will consist of an electric -motor driven vertical turbine pump within a small building (approximately 20' X 20') located on private land in the City of Rifle. The building will be designed to enclose the water pump and associated electrical controls. The pump building will protect the control systems from weather and corrosion as well as providing sound damping for the water pump. This pump building is presently under review by the Rifle Planning Department. The proposed 8" pipeline is approximately 31,024 linear feet in total length; approximately 9,812 feet is located on federal land (BLM) and approximately 21,212 feet on private land for a total length of approximately 5.87 miles. The proposed pipeline will be constructed with of 8", 0.219- 1 • • inch wall thickness, Grade X-42 steel pipe with a maximum allowable operating pressure of 740 psig. The Applicant plans to use a 70 -foot wide corridor for construction purposes. Once the construction is complete, the Applicant intends to adjust the easement to a permanent 50 -foot wide right-of-way governing the operational and maintenance purposes for the waterline. As of the time of submittal of this application, verbal surface use agreements with the appropriate private property owners have been made. Since that time, this office understands those formal surface use agreements have all be signed and will be delivered to the County. The Applicant has flagged and surveyed the proposed route. The route will run from the Last Chance Ditch at 700 Buckhorn Drive in Rifle generally east toward the Garfield County Airport, then turning south through Section 23 generally parallel to West Mamm Creek Road (Garfield County Road 319). The pipeline route leaves West Mamm Creek Road in the NW/4 SE/4 of Section 26 and follows an existing field road into Section 36, and then parallels existing pipelines and roads to EnCana's Hunter Mesa Water Treatment Plant in the SE/4 NE/4 of Section 1, Township 7 South, Range 93 West, Garfield County, Colorado. A minimum distance of 25' from the centerline of existing foreign pipelines and 10' from EnCana pipelines will be maintained at all times. All sections of the proposed pipeline will be buried at least 5' below grade, except at road crossings where the depth will be increased to 6'. EnCana shall comply with all applicable federal, state and local laws and regulations as they relate to public health, safety and environmental protection in the construction, operation, and maintenance of this facility. No toxic substances will be stored or used on the right-of-way. All safety measures have been considered in the design, construction, operation and maintenance of the facility. EnCana will have inspectors present during construction. All associated road and utility permits will be secured from the appropriate regulatory agency prior to construction. The necessary permits to be submitted for the proposed pipeline include: 1) Colorado Department of Public Health and Environment: "Storm Water Management Plan" 2) Bureau of Land Management: Form 299: "Application for Transportation and Utility Systems and Facilities on Federal Lands." 3) U.S. Army Corps of Engineers: "Nationwide Permit 12 Section 404" 4) City of Rifle: "Site Plan Application" for pump building 5) City of Rifle: "Watershed District Permit" 6) Garfield County Road and Bridge Department: "Road Crossing Permit" 7) Surface Use Agreements: "Agreements providing permission to cross private property" II. REFERRALS Staff referred the application out to the following review agencies and or County Departments: b. Rifle Fire Protection District: No Comments Received c. County Vegetation Management Director: (Exhibit K) The County Vegetation Manager reviewed the application and suggests the following conditions should the Board approve the request: 2 • • a. In order to comply with the requirements of the County Vegetation Manager, the Applicant or their successors in interest shall provide a written commitment to inspect, monitor, and be responsible for the management of any of Garfield County's Noxious Weeds that may emerge on private lands that are disturbed by the pipeline. This commitment shall be in effect for the life of the pipeline and shall include a commitment to respond to any complaints by landowners regarding pipeline noxious weeds in a timely manner. This commitment shall include cooperation with the Bureau of Land Management in developing a weed management plan for any noxious weed infestations that occur on the pipeline within BLM land. b. The Applicant shall post a revegetation security for the portions of the pipeline that are not located on Bureau of Land Management property. The Applicant shall quantify the surface area disturbed (in acres) on private lands so that the County Vegetation Manager may determine a security amount. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It shall be the responsibility of the Applicant to contact the County, upon successful revegetation establishment, to request an inspection for security release consideration. No Special Use Permit shall be issued until this security has been posted. d. City of Rifle: (Exhibit G) Encana will need a Watershed District Permit from the City for the construction of the pipeline as it falls within the City's jurisdiction under the Watershed Ordinance and regulated activities. They have a site plan application pending for pump station. From a land user perspective, our only concern is with who uses the water. The City has no objection to Encana piping water for its needs, because of the obvious benefit of removing water trucks from the road network. The City recommends the County include language that restricts the use of the pipeline to Encana for gas extraction. The condition might read: "The subject pipeline shall be used to deliver water solely for the applicants use in the extraction of gas. Any secondary taps to the water line by third parties or secondary use by the applicant shall require an amendment to this special use permit and proof that said third parties possess rights to water being distributed through the pipeline." e. Bureau of Land Management: No Comments Received f. Colorado Division of Wildlife: No Comments Received g. Colorado Division of Water Resources: No Comments Received h. US Corps of Engineers: Verbally indicated that the all necessary Corps permits have been issued for the project. i. Garfield County Road & Bridge Department: (Exhibit I) The water pipeline and all construction must stay outside the County ROW. The road crossing permit for the water pipeline will be issued as to the latest drawing when the SUP is final. The road crossing is located in a place that is acceptable to our department. 3 • • j. Garfield County Oil & Gas Auditor: (Exhibit H) 1) Due to the size of the disturbance associated with this project (i.e., greater than 5 acres), it is my understanding that this project will also be subject to the Colorado Department of Public Health and Environment's (CDPHE's) storm water permitting requirements. I would recommend that the applicant either provide a copy of the storm water permit for this project or provide justification for why no permit is required. If such a permit is required, then it will need to be identified in the list of required permits provided in several locations in the application. 2) I would also recommend that applicant ensure that they have complied with all of CDPHE's permitting requirements related to discharge of hydro -testing water. If a permit is required, then it will need to be identified in the list of required permits provided in several locations in the application. 3) I recommend that the applicant be required to provide documentation that they have the rights to the water to be pumped through this pipeline from the Last Chance Ditch. 4) For consistency with SUP applications I have reviewed for other pipeline projects, I would recommend that the applicant also be required to identify the source of the water that will be used for hydro -testing and demonstrate that they have the required rights to such water. k. Resource Engineering: (Exhibit P) EnCana currently holds a West Divide Water Conservancy District water allotment contract for 350 acre feet of Ruedi Reservoir replacement water for its operations in the Colorado River basin. We confirmed with the Division of Water Resources that EnCana can divert its water into the Last Chance Ditch through an administrative direct exchange (no State approval is required). EnCana must obtain approval from owners of the Last Chance Ditch (Loesch & Crann Ditch Company) or seek judicial approval to convey its water through the ditch. A draft agreement between the parties dated July 26, 2004 was submitted. The agreement contemplates a seven year agreement with the right to extend the agreement another seven years. The County may want to include a provision that the applicant must maintain a legal water supply and approval to use the Last Chance Ditch. III. GARFIELD COUNTY ZONING RESOLUTION As required in the County's Zoning Resolution, special uses shall adequately address the following three review criteria from Section 5.03, 5.03.07 and 5.3.08: Section 5.03 (1) Utilities adequate to provide water and sanitation service based on accepted engineering standards and approved by the Board of County Commissioners shall either be in place or shall be constructed in conjunction with the proposed use; 4 • • Staff Response The project consists primarily as an unmanned water line and pump building. This use does not require the long-term permanent provision of utilities related to wastewater. Regarding the provision of water, the purpose of the pipeline is to convey raw water from the Last Chance Ditch to the Hunter Mesa Water Treatment Facility. The Applicant provided water rights documentation indicating that they have the rights to the needed water in the ditch. This documentation is provided in Exhibits L, M, and 0). The water will be monitored at the output from the pump into the pipe conveying the water to the Hunter Mesa facility. Water Rights The Applicant has obtained an approved augmentation contract from West Divide Water Conservancy District for 350 acre-feet to be taken out of the Last Chance Ditch to be used for drilling and completion of oil / gas wells in Garfield County. In addition, the Division of Water Resources has approved a substitute supply plan subject to certain conditions listed in Exhibit M. Lastly, the Applicant is presently entering into an agreement between the Loesch & Crann Ditch Company which is the owner and operator of the Last Chance Ditch. In this agreement, the ditch company agrees to allow the Applicant to utilize the Last Chance Ditch for diversion and transportation of Encana's water provided by the West Divide Water Conservancy District (350 acre feet). This proposed contract is for 7 years while the proposed life of the pipeline is 30 years. This will need to be addressed. Staff forwarded the application to Resource Engineering in order to review the water rights documentation and found that the documentation of water rights were intact and can legally provide the amount of water proposed for the use as proposed in the application. Resource Engineering stated: "EnCana currently holds a West Divide Water Conservancy District water allotment contract for 350 acre feet of Ruedi Reservoir replacement water for its operations in the Colorado River basin. We confirmed with the Division of Water Resources that EnCana can divert its water into the Last Chance Ditch through an administrative direct exchange (no State approval is required). EnCana must obtain approval from owners of the Last Chance Ditch (Loesch & Crann Ditch Company) or seek judicial approval to convey its water through the ditch. A draft agreement between the parties dated July 26, 2004 was submitted. The agreement contemplates a seven year agreement with the right to extend the agreement another seven years. The County may want to include a provision that the applicant must maintain a legal water supply and approval to use the Last Chance Ditch." (See Exhibit P) (2) Street improvements adequate to accommodate traffic volume generated by the proposed use and to provide safe, convenient access to the use shall either be in place or shall be constructed in conjunction with the proposed use; Staff Response The proposed use will not generate any measurable traffic impacts that will require street improvements. There may be limited trips to the pump house for mechanical service / maintenance reasons; however, these trips will be extremely limited. The Applicant asserts that one of the primary reasons for constructing the water line is to reduce the number of large trucks that haul water which will further reduce impacts to the integrity of the County road system. The proposed route will cross County Road 319 in one place just as the road enters the Benzel 5 • Livestock Co. property. The Applicant proposes to bore underneath the road so that a road cut is unnecessary. The Applicant states that "during pipeline and facility construction, all equipment and vehicular access into the pipeline project will be confined to approved existing roads and the established right-of-way corridor. No major reconstruction or rerouting of these roads is intended. All working areas will be confined to the requested right-of-way." In addition, "during typical usage the proposed pipeline and associate facilities are expected to require a minimal amount of vehicle trips for operation and maintenance purposes. Vehicles will operate primarily during daylight hours and will travel on existing private and public roads that already provide access in the West Mamm Creek area. Therefore the new facility is not expected to require specific improvements to the existing roads." Staff referred the application to the Road and Bridge Department which commented that the water pipeline and all construction must stay outside the County ROW. The road crossing permit for the water pipeline will be issued as to the latest drawing when the SUP is final. The road crossing is located in a place that is acceptable to our department (Exhibit I). Staff finds this standard is met. (3) Design of the proposed use is organized to minimize impact on and from adjacent uses of land through installation of screen fences or landscape materials on the periphery of the lot and by location of intensively utilized areas, access points, lighting and signs in such a manner as to protect established neighborhood character; Staff Response The pipeline itself will be buried at least 5 feet below grade. There will be sporadic above ground air vent valves along the line that will rise above the ground by approximately 4 feet which will be painted with "Carlsbad Canyon 2.5 Y 6/2" color or similar color to blend in with the surrounding to blend in with the surrounding environment. The Applicant proposes a 70 -foot wide "construction easement" for the purposes of constructing and installing the pipe. This easement will be reduced to 50 -feet when the line is installed and easement reclaimed. While the line is buried and does not need screening, the path that is cut along the landscape will be visible as it is cleared of all vegetation for the pipe installation. The Applicant proposes a revegetation plan that includes the following measures: 1. Disturbed Areas: All disturbed areas will be final graded to as close as possible to its original condition. 2. Erosion: Erosion control structures such as water bars or "kicker dikes" will be constructed. Water bars will be placed approximately every 25' on steep slopes to prevent erosion over the 'right-of-way. Steep slope breaks will also be made impassable to vehicular traffic by using deep water bars, leaving them rough. 6 • • 3. Weed Control: EnCana shall be responsible for weed control on disturbed areas within the limits of the right-of-way. EnCana will be responsible for consultation with the authorized officer and/or local authorities for acceptable weed control methods (within limits imposed in the grant stipulation). 4. Drainages: The banks of drainage crossings will be returned and stabilized to their original slope to avoid ramping and opening them to livestock and vehicle traffic. 5. Visuals: Where applicable, the upper rim rock will be replaced to discourage traffic and mitigate visual scarring. 6. Seeding: EnCana will seed all disturbed areas along the pipeline corridor with the recommended seed mixtures as provided by the BLM, and summarized in the attached table. In addition, the Applicant proposes the following planting scheme: "Seed shall be planted using a drill equipped with a depth regulator to ensure proper depth of planting where drilling is possible. The seed mixture shall be evenly and uniformly planted over the disturbed area. Where drilling is not possible, seed shall be broadcast and the area shall be raked or chained to cover the seed. When broadcasting the seed, the pounds per acre will be doubled. Steep slopes will not be drill seeded so to avoid establishing rills. The seeding will be repeated until a satisfactory stand is established as determined by the authorized officer. Evaluation of growth will not be made before completion of the first growing season after seeding. The authorized officer will be notified a minimum of 5 days prior to the seeding of the project. Seeding will occur during spring or late fall seasons when ground frost is not present." As a matter of construction, the Application states that the top 6 inches of topsoil in a portion of the right-of-way will be removed, conserved during excavation, and reused as cover on disturbed areas to facilitate revegetation. Trenching will be performed with a trencher. Side -boom tractors will be used to place the pipeline in the trench after the pipe has been welded and coated. After the pipeline is in place, the trench will be backfilled using an angle dozer or auger. If rocks are present, the pipe will be padded and shaded with a bucket shaker or an "Ozzie Padder", there are to be no berms. No foreign rock to the surface will remain exposed. Reclamation: The expected life of the EnCana River Water Pipeline is 30 years. Reclamation will consist of the following: ➢ Removal of all surface equipment and appurtenances. ➢ Restoration and re -contouring of grade to approximate original conditions. ➢ Replacement of stockpiled topsoil. ➢ Compliance with all prevailing Colorado Oil and Gas Conservation Commission and Garfield County regulations governing reclamation. ➢ Prior to termination of the right-of-way, EnCana shall contact the authorized Federal officer to arrange a pre -termination conference. This conference will be held to review the termination provision of the grant. The County Vegetation Manager reviewed the application and suggests the following conditions should the Board approve the request: a. In order to comply with the requirements of the County Vegetation Manager, the Applicant or their successors in interest shall provide a written commitment to inspect, 7 • • monitor, and be responsible for the management of any of Garfield County's Noxious Weeds that may emerge on private lands that are disturbed by the pipeline. This commitment shall be in effect for the life of the pipeline and shall include a commitment to respond to any complaints by landowners regarding pipeline noxious weeds in a timely manner. This commitment shall include cooperation with the Bureau of Land Management in developing a weed management plan for any noxious weed infestations that occur on the pipeline within BLM land. b. The Applicant shall post a revegetation security for the portions of the pipeline that are not located on Bureau of Land Management property. The Applicant shall quantify the surface area disturbed (in acres) on non -Federal lands so that the County Vegetation Manager may determine a security amount. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It shall be the responsibility of the Applicant to contact the County, upon successful revegetation establishment, to request an inspection for security release consideration. No Special Use Permit shall be issued until this security has been posted. Section 5.03.07 Industrial Operation Industrial Operations, including [but not limited to] extraction, processing, fabrication, industrial support facilities, mineral waste disposal, storage, sanitary landfill, salvage yard, access routes and utility lines, shall be permitted, provided: 1) The applicant for a permit for industrial operations shall prepare and submit to the Planning Director ten (10) copies of an impact statement on the proposed use describing its location, scope, design and construction schedule, including an explanation of its operational characteristics. One (1) copy of the impact statement shall be filed with the County Commissioners by the Planning Director. The impact statement shall address the following: a) Existing lawful use of water through depletion or pollution of surface run-off, stream flow or ground water; Staff Finding As mentioned above, the project consists primarily as an unmanned water line and pump building. This use does not require the long-term permanent provision of utilities that provide water or handle wastewater. The purpose of the pipeline is to convey raw water from the Last Chance Ditch to the Hunter Mesa Water Treatment Facility. The Applicant provided water rights documentation indicating that they have the rights to the needed water in the ditch. This is included in Exhibits L, M, 0, and P. Staff sent the application to the Division of Water Resources and did not get any response. The water will be monitored at the output from the pump into the pipe conveying the water to the Hunter Mesa facility. 8 • • b) Impacts on adjacent land from the generation of vapor, dust, smoke, noise, glare or vibration, or other emanations; Staff Finding The water line will not emit any measurable vibration; however, the Applicant states that "the proposed water pump station is expected to emanate minimal amounts of vibration. The planned pump building will aid in mitigating this noise and vibration. The vibration, if any, should be localized to a small area immediately surrounding the pump. If, in the unlikely event, nuisance noise, vibration, or odors are emanated by the facility, additional measures will be taken to control them." The pump building is located in the City of Rifle and not in Garfield County. The Application states that "the proposed pipeline and associated facilities will not affect area air quality as none of the permanent structures will emit air pollutants. A federal or state emission permit will not be required for this proposed project." Staff suggests the Board require the Applicant to submit an approved site plan application from the City of Rifle approving the pump building portion of the proposal prior to the issuance of any Special Use Permit. c) Impacts on wildlife and domestic animals through the creation of hazardous attractions, alteration of existing native vegetation, blockade of migration routes, use patterns or other disruptions; Staff Finding The Application states that the proposed pipeline and associated facilities will occupy approximately 50 acres overall. According to wildlife distribution maps from the Colorado Department of Wildlife, a portion of the pipeline is located within summer rangeland for mule deer and elk and is within migration corridors for these animals. The characteristics of the proposed buried pipeline will not block wildlife migration routes. The pump building is located in an industrially / commercially developed area of the City of Rifle and will not impact wildlife. d) Affirmatively show the impacts of truck and automobile traffic to and from such uses and their impacts to areas in the County; Staff Finding The purpose of the proposal is to move water more efficiently throughout the specific region where the gas drilling operations are located. At present, large diesel trucks are used to haul water from the Last Chance Ditch and the Colorado River to the Hunter Mesa site as well as other drilling sites. This waterline will significantly reduce the need for those trucks which will remove those trucks from impacting the County road system. e) That sufficient distances shall separate such use from abutting property which 9 • • might otherwise be damaged by operations of the proposed use(s); Staff Finding The waterline crosses 7 private properties and will be situated within a 70 to 50 -foot wide right-of-way which has been granted approval by all of the private property owners to Encana. J) Mitigation measures proposed for all of the foregoing impacts identified and for the standards identified in Section 5.03.08 of this Resolution Staff Finding The mitigation for impacts generated from the proposed operations is included in the following section. 2) Permits may be granted for those uses with provisions that provide adequate mitigation for the following: a) A plan for site rehabilitation must be approved by the County Commissioners before a permit for conditional or special use will be issued; b) The County Commissioners may require security before a permit for special or conditional use is issued, if required. The applicant shall furnish evidence of a bank commitment of credit, bond, certified check or other security deemed acceptable by the County Commissioners in the amount calculated by the County Commissioners to secure the execution of the site rehabilitation plan in workmanlike manner and in accordance with the specifications and construction schedule established or approved by the County Commissioners. Such commitments, bonds or check shall be payable to and held by the County Commissioners; c) Impacts set forth in the impact statement and compliance with the standards contained in Section 5.03.08 of this Resolution. Staff Finding As discussed above, the proposal includes a revegetation plan that includes the following measures: 1. Disturbed Areas: All disturbed areas will be final graded to as close as possible to its original condition. 2. Erosion: Erosion control structures such as water bars or "kicker dikes" will be constructed. Water bars will be placed approximately every 25 -feet on steep slopes to prevent erosion over the right-of-way. Steep slope breaks will also be made impassable to vehicular traffic by using deep water bars, leaving them rough. 3. Weed Control: EnCana shall be responsible for weed control on disturbed areas within the limits of the right-of-way. EnCana will be responsible for consultation with the authorized officer and/or local authorities for acceptable weed control methods (within limits imposed in the grant stipulation). 4. Drainages: The banks of drainage crossings will be returned and stabilized to their original slope to avoid ramping and opening them to livestock and vehicle traffic. 5. Visuals: Where applicable, the upper rim rock will be replaced to discourage traffic and mitigate visual scarring. 10 • • 6. Seeding: EnCana will seed all disturbed areas along the pipeline corridor with the recommended seed mixtures as provided by the BLM, and summarized in the attached table. In addition, the Applicant proposes the following planting scheme: Seed shall be planted using a drill equipped with a depth regulator to ensure proper depth of planting where drilling is possible. The seed mixture shall be evenly and uniformly planted over the disturbed area. Where drilling is not possible, seed shall be broadcast and the area shall be raked or chained to cover the seed. When broadcasting the seed, the pounds per acre will be doubled. Steep slopes will not be drill seeded so to avoid establishing rills. The seeding will be repeated until a satisfactory stand is established as determined by the authorized officer. Evaluation of growth will not be made before completion of the first growing season after seeding. The authorized officer will be notified a minimum of 5 days prior to the seeding of the project. Seeding will occur during spring or late fall seasons when ground frost is not present. As a matter of construction, the Application states that the top 6 inches of topsoil in a portion of the right-of-way will be removed, conserved during excavation, and reused as cover on disturbed areas to facilitate revegetation. Trenching will be performed with a trencher. Side -boom tractors will be used to place the pipeline in the trench after the pipe has been welded and coated. After the pipeline is in place, the trench will be backfilled using an angle dozer or auger. If rocks are present, the pipe will be padded and shaded with a bucket shaker or an "Ozzie Padder", there are to be no berms. No foreign rock to the surface will remain exposed. Reclamation: The expected life of the EnCana River Water Pipeline is 30 years. Reclamation will consist of the following: > Removal of all surface equipment and appurtenances. > Restoration and re -contouring of grade to approximate original conditions. > Replacement of stockpiled topsoil. > Compliance with all prevailing Colorado Oil and Gas Conservation Commission and Garfield County regulations governing reclamation. > Prior to termination of the right-of-way, EnCana shall contact the authorized Federal officer to arrange a pre -termination conference. This conference will be held to review the termination provision of the grant. The County Vegetation Manager reviewed the application and suggests the following conditions should the Board approve the request: a. In order to comply with the requirements of the County Vegetation Manager, the Applicant or their successors in interest shall provide a written commitment to inspect, monitor, and be responsible for the management of any of Garfield County's Noxious Weeds that may emerge on private lands that are disturbed by the pipeline. This commitment shall be in effect for the life of the pipeline and shall include a commitment to respond to any complaints by landowners regarding pipeline noxious weeds in a timely manner. This commitment shall include cooperation with the Bureau of Land Management in developing a weed management plan for any noxious 11 • weed infestations that occur on the pipeline within BLM land. b. The Applicant shall post a revegetation security for the portions of the pipeline that are not located on Bureau of Land Management property. The Applicant shall quantify the surface area disturbed (in acres) on non -Federal lands so that the County Vegetation Manager may determine a security amount. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It shall be the responsibility of the Applicant to contact the County, upon successful revegetation establishment, to request an inspection for security release consideration. No Special Use Permit shall be issued until this security has been posted. Section 5.03.08 Industrial Performance Standards All industrial operations in the County shall comply with applicable County, State, and Federal regulations regulating water, air and noise pollution and shall not be conducted in a manner constituting a public nuisance or hazard. Operations shall be conducted in such a manner as to minimize heat, dust, smoke, vibration, glare and odor and all other undesirable environmental effects beyond the boundaries of the property in which such uses are located, in accord with the following standards: 1) Volume of sound generated shall comply with the standards set forth in the Colorado Revised Statutes at the time any new application is made. Staff Finding The pipeline itself will not generate any sound of any measurable impact. The pump that pulls the water from the Last Chance Ditch into the water line will generate noise but is located in the City of Rifle. The Applicant proposes to enclose the pump in a pump building to dampen the sound as well as protect the pump from the elements. The Applicant asserts the following in their impact statement: "Noise from the construction activities will create a temporary disruption of ambient conditions; however, any disruption should be of relatively short duration. The proposed water pump station is expected to emanate low-level noise and possibly minimal amounts of vibration. The planned pump building will aid in mitigating this noise and vibration. The sound level of noise emanating from the facility will not exceed the 75 decibel maximum set forth in Colorado Revised Statute 25-12-103. As the planned pump station location is in an industrial / commercial area remote, noise will not be a nuisance to area residents. The vibration, if any, should be localized to a small area immediately surrounding the pump. If, in the unlikely event, nuisance noise, vibration, or odors are emanated by the facility, additional measures will be taken to control them." The pump building is located in the City of Rifle and not in Garfield County. 2) Vibration generated: every use shall be so operated that the ground vibration inherently and recurrently generated is not perceptible, without instruments, at any point of any boundary line of the property on which the use is located; 12 • • Staff Finding Again, the water line will not emit any measurable vibration; however, the Applicant states that "the proposed water pump station is expected to emanate minimal amounts of vibration. The planned pump building will aid in mitigating this noise and vibration. The vibration, if any, should be localized to a small area immediately surrounding the pump. If, in the unlikely event, nuisance noise, vibration, or odors are emanated by the facility, additional measures will be taken to control them." Again, the pump building is located in the City of Rifle and not in Garfield County. 3) Emissions of smoke and particulate matter: every use shall be operated so as to comply with all Federal, State and County air quality laws, regulations and standards; Staff Finding The Application states that "the proposed pipeline and associated facilities will not affect area air quality as none of the permanent structures will emit air pollutants. A federal or state emission permit will not be required for this proposed project." 4) Emission of heat, glare, radiation and fumes: every use shall be so operated that it does not emit heat, glare, radiation or fumes which substantially interfere with the existing use of adjoining property or which constitutes a public nuisance or hazard. Flaring of gases, aircraft warning signals, reflective painting of storage tanks, or other such operations which may be required by law as safety or air pollution control measures shall be exempted from this provision; Staff Finding The waterline or the pump inside the pump building will not emanate heat, glare, radiation, or fumes that will substantially interfere with the uses on the adjoining properties. The Application did contain fire control provisions to be observed during the construction phase of the project. These include the following: General All facility or operations personnel are instructed as to: 1) Be aware of local area fire danger for each day, 2) Location of fire control equipment, 3) Proper operation of fire control equipment, and 4) Emergency procedures and how to call for additional resources Welding & Hot Work Operations a. A minimum of one person is dedicated to act as a fire watch during welding or hot work operations with a fire extinguisher at hand; b. Welding shields are used during grinding operations to prevent sparks from leaving work areas and igniting vegetation; c. Water trucks are used to wet down ground and nearby vegetation, as conditions dictate; and d. At the close of each day, personnel inspect the area of welding or hot work activities for any smoldering debris and any conditions conducive to fires. 13 • • Communications EnCana or Contractor vehicles are typically equipped with cellular communications on board. In the event of a fire a. In the event of a fire, all personnel and appropriate equipment on site will be committed to fire containment and control; b. The BLM and appropriate fire authorities will be notified immediately; and c. Direction of fire control efforts will be transferred to appropriate fire fighting agency personnel upon their arrival on site. 5) Storage area, salvage yard, sanitary landfill and mineral waste disposal areas: a) Storage of flammable or explosive solids or gases shall be in accordance with accepted standards and laws and shall comply with the national, state and local fire codes and written recommendations/comments from the appropriate local protection district regarding compliance with the appropriate codes; Staff Finding The proposal does not include the storage of any flammable or explosive solids or gases. b) At the discretion of the County Commissioners, all outdoor storage facilities may be required to be enclosed by fence, landscaping or wall adequate to conceal such facilities from adjacent property; Staff Finding The proposal does not include outdoor storage of any kind. c) No materials or wastes shall be deposited upon a property in such form or manner that they may be transferred off the property by any reasonably foreseeable natural causes or forces; Staff Finding While it appears the proposal will not include the storage or deposit of materials or wastes, Staff suggests the Board include this standard as a condition of approval that could also apply to the construction portion of the project. d) Storage of Heavy Equipment will only be allowed subject to (A) and (C) above and the following standards: L The minimum lot size is five (5) acres and is not a platted subdivision. ii. The equipment storage area is not placed any closer than 300 ft from any existing residential dwelling. iii. All equipment storage will be enclosed in an area with screening at least eight (8) feet in height and obscured from view at the same elevation or lower. Screening may include berming, landscaping, sight obscuring fencing or a combination of any of these methods. 14 • • iv. Any repair and maintenance activity requiring the use of equipment that will generate noise, odors or glare beyond the property boundaries will be conducted within a building or outdoors during the hours of 8 a.m. to 6 p.m., Mon. -Fri. v. Loading and unloading of vehicles shall be conducted on private property and may not be conducted on any public right-of-way. Staff Finding The proposal does not include the storage of any heavy equipment. However, Staff does question where the heavy earth moving equipment and pipeline laying equipment will be stored during the construction phase. Should the Board approve the request, Staff suggests the Applicant propose a construction schedule and indicate where staging areas are to be located to be used during construction. e) Any storage area for uses not associated with natural resources shall not exceed ten (10) acres in size. f) Any lighting of storage area shall be pointed downward and inward to the property center and shaded to prevent direct reflection on adjacent property. Staff Finding The proposal does not include any permanent storage. Any lighting to be included shall be directed inward and downward towards the interior of the property. It appears this may only apply to the pump house. 6) Water pollution: in a case in which potential hazards exist, it shall be necessary to install safeguards designed to comply with the Regulations of the Environmental Protection Agency before operation of the facilities may begin. All percolation tests or ground water resource tests as may be required by local or State Health Officers must be met before operation of the facilities may begin. Staff Finding There does not appear to be any risk or potential hazard for pollution to groundwater. The water being transferred from the Last Chance Ditch is raw irrigation water which will not harm groundwater in there event there is a leak. The pump in the pump house is powered by electricity rather than flammable fuel. Regarding the waterline and storm water management, because the area of ground disturbance is greater than 5 acres to construct the line, Encana is required by the Colorado Department of Public Health and Environment (CDPHE) to put in place a Storm Water Management Plan which is periodically audited by CDPHE. Encana currently has an umbrella plan for the larger area for their drilling operations in place. In addition, Encana has crafted a specific plan for this waterline project which will be put in place to govern storm Water Management practices. The Applicant has attached the Stormwater Management Plan and Construction Best management Practices to the permit applications for both the Army Corps of Engineers and the Bureau of Land Management. Staff suggests, should the Board approve this request, the "Construction, Operation, and Maintenance Plan" which is included in the permit application for Stormwater Management Plan be considered conditions of approval for all activity on private land as well as public lands. 15 • • Along the route over the seven private properties, the proposed line crosses eight ephemeral drainages/ washes including Dry Creek. As such, SWCA Environmental Services prepared an application on behalf of the Applicant to the Army Corps of Engineers that demonstrated how those crossings will be treated. Seven of the eight crossings will use open -trench methods due their small size and the Dry Creek crossing will occur via a boring entirely under the wash. The application contains an extensive Best Management Practices for Storm Water Management Plan that includes a "Construction, Operation, and Maintenance Plan" that has been approved by the Corps that specifically addresses how all the crossings are to be treated with respect to erosion and sediment control. As a matter of clarification, the Corps only evaluates / regulates private property and this evaluation and approval does not apply to the BLM portion of the route. In recent phone conversations with the Corps of Engineers, they have approved the proposal and issued the Nationwide Permit 12 Section 404 permit. Applicant's proposed Impact Statement The proposed pipeline has been planned and designed for a number of beneficial reasons. The proposed pipeline will transport water in a safe and innocuous manner in comparison to other methods of water hauling. The proposed pipeline will shorten truck trips and lessen the need for truck travel to the Hunter Mesa facility. The operation of the proposed pipeline will not differ significantly from the surrounding oil and gas exploration and production related land uses. The pipeline will be in continuous use and operation 24 -hours per, day during the irrigation season, approximately March until November, each year. The line would be drained for freeze protection during winter months. Maintenance and operation activities will occur as needed, however, the majority of activity associated with the proposed pipeline will occur during normal business hours. During pipeline and facility construction, all equipment and vehicular access into the pipeline project will be confined to approved existing roads and the established right -of- way corridor. No major reconstruction or rerouting of these roads is intended. All working areas will be confined to the requested right-of-way. During typical usage the proposed pipeline and associate facilities are expected to require a minimal amount of vehicle trips for operation and maintenance purposes. Vehicles will operate primarily during daylight hours and will travel on existing private and public roads that already provide access in the West Mamm Creek area. Therefore the new facility is not expected to require specific improvements to the existing roads. A cultural resource inventory for the proposed route has been completed. The report has been submitted to the Bureau of Land Management, Glenwood Springs Field Office in Glenwood Springs Colorado. If any cultural remains, monument sites, objects or antiquities subject to the Antiques Act of June 8, 1906, or Archaeological Resources Protection Act of 1979, are discovered, the activities shall cease immediately and the responsible authorized officer shall be notified. If any fossils are discovered during construction, the operator shall cease construction immediately and notify the authorized BLM officer so as to determine the significance of the discovery. 16 • • The proposed pipeline and associated facilities will not affect area air quality as none of the permanent structures will emit air pollutants. A federal or state emission permit will not be required for this proposed project. The aboveground structures related to the proposed pipeline shall be painted to blend with the surrounding landscape. Visual quality objectives for the land management unit shall not be adversely impacted. The proposed pipeline crosses numerous ephemeral drainages; however, surface or ground water quality and quantity should not be affected. The facility design will preclude any pollution to enter surface run-off. There will be no sewage or solid waste generated by the proposed pipeline or associated facilities. The pipeline will be hydro -tested prior to being placed in service. Prior to any discharge, hydrostatic testing water will be tested and processed, if necessary, to ensue that the water meets local, state or federal water quality standards. Prior to discharge of hydrostatic testing water from the pipeline, EnCana will design and install a suitable energy dissipater at the outlets, and design and install suitable channel protection structures necessary to ensure that there will be no erosion or scouring of natural channels within the affected watershed as a result of such discharge. Sandbags, rock, or other materials or objects installed shall be removed from the site upon completion of hydrostatic testing. Noise from the construction activities will create a temporary disruption of ambient conditions; however, any disruption should be of relatively short duration. The proposed water pump station is expected to emanate low-level noise and possibly minimal amounts of vibration. The planned pump building will aid in mitigating this noise and vibration. The sound level of noise emanating from the facility will not exceed the 75 decibel maximum set forth in Colorado Revised Statute 25-12-103. As the planned pump station location is in an industrial / commercial area remote, noise will not be a nuisance to area residents. The vibration, if any, should be localized to a small area immediately surrounding the pump. If in the unlikely event, nuisance noise, vibration, or odors are emanated by the facility, additional measures will be taken to control them. The construction of the proposed facility will not have any significant visual impact on the surrounding environment. Any actual construction impacts will be temporary. The visual impact of the completed pipeline and facilities to the area will be negligible due to the minimal amount of surface equipment associated with the facilities. Landscaping information is provided in Part VII. The facilities and structures associated with the proposed pipeline will be protected by fencing or other means to limit access to authorized operation personnel only. Signage for the proposed pipeline and facilities will include the company name and address as well as a 24-hour toll-free emergency phone number. The proposed pipeline and associated facilities will occupy approximately 50 acres overall. According to wildlife distribution maps from the Colorado Department of Wildlife, a portion of the pipeline is located within summer rangeland for mule deer and elk and is within migration corridors for these animals. The characteristics of the proposed buried pipeline will not block wildlife migration routes. IV. IN SUMMARY 17 • • The project and all associated measures for impact mitigation appear to meet the review standards in Section 5.03, 5.0307, and 5.03.08. Further, the project appears to be beneficial to the County; in that, it will significantly reduce the numbers of large heavy water hauling trucks that constantly travel the County road system. This will reduce the long term physical impact to the roads thereby reducing the cost of the County to maintain these roads. Ancillary impacts to reducing large truck volumes also include increased traffic safety and lessened impacts to air quality as a result of reduced diesel emissions and PM -10 particulate generation. This is echoed by Resource Engineering's review which stated "the general requirements for any special use include providing adequate water and wastewater service and adequate road improvements and/or access for the proposed use. The proposed special use does not require potable water or wastewater services and would reduce hauling of water by truck traffic after construction is completed. The temporary construction traffic does not appear to require any road improvements." Additional Permits The County recently changed its requirements so that the various local, state, and federal permitting processes can occur at the same time rather than requiring that they all be delivered to the County "in -hand" as part of our review for our Special Use Permit. As a result, note that the following additional permits are presently "in -process" and would need to be obtained and submitted to this office prior to any issuance of a County Special Use Permit: 1) Colorado Department of Public Health and Environment: "Storm Water Management Plan" 2) Bureau of Land Management: Form 299: "Application for Transportation and Utility Systems and Facilities on Federal Lands." 3) U.S. Army Corps of Engineers: "Nationwide Permit 12 Section 404" 4) City of Rifle: "Site Plan Application" for pump building 5) City of Rifle: "Watershed District Permit" 6) Garfield County Road and Bridge Department: "Road Crossing Permit" 7) Surface Use Agreements: "Agreements providing permission to cross private property" V. SUGGESTED FINDINGS 1. That proper public notice was provided as required for the hearing before the Board of County Commissioners. 2. That the hearing before the Board of County Commissioners was extensive and complete, that all pertinent facts, matters and issues were submitted and that all interested parties were heard at that meeting. 18 • • 3. That for the above stated and other reasons, the proposed special use permit is in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County. 4. That the application is in conformance with Section 5.03, 5.0307, and 5.03.08 of the Garfield County Zoning Resolution of 1978, as amended. VI. RECOMMENDATION Staff recommends the Board of County Commissioners approve the Applicant's request for a Special Use Permit for "material handling" for an 8 -inch waterline for the special use permit, with the following conditions: 1. That all representations made by the Applicant in the application and as testimony in the public hearing before the Board of County Commissioners shall be considered conditions of approval, unless specifically altered by the Board of County Commissioners. 2. The Applicant shall provide surface use agreements that clearly show that the Applicant has obtained all necessary approvals to cross all subject private properties along the proposed waterline route prior to the issuance of a Special Use Permit from Garfield County. 3. Prior to the issuance of a Garfield County Special Use Permit, the Applicant shall provide all applicable approvals from the Bureau of Land Management (Form 299) and the Army Corps of Engineers (Nationwide Permit 12 Section 404). 4. The Applicant shall obtain a Watershed District Permit from the City of Rifle for the construction of the pipeline as it falls within the City's jurisdiction under the Watershed Ordinance and regulated activities prior to the issuance of the Special Use Permit from Garfield County. 5. The subject pipeline shall be used to deliver water solely for the Applicants or their successors in interest for the use in the extraction of gas. Any secondary taps to the water line by third parties or secondary use by the applicant shall require an amendment to this special use permit and proof that said third parties possess rights to water being distributed through the pipeline. 6. In order to comply with the requirements of the County Vegetation Manager, the Applicant or their successors in interest shall provide a written commitment to inspect, monitor, and be responsible for the management of any of Garfield County's Noxious Weeds that may emerge on private lands that are disturbed by the pipeline. This commitment shall be in effect for the life of the pipeline and shall include a commitment to respond to any complaints by landowners regarding pipeline noxious weeds in a timely manner. This commitment shall include cooperation with the Bureau of Land Management in developing a weed management plan for any noxious weed infestations that occur on the pipeline within BLM land. 7. The Applicant shall post a revegetation security for the portions of the pipeline that are not located on Bureau of Land Management property. The Applicant shall quantify the surface 19 • • area disturbed (in acres) on non -Federal lands so that the County Vegetation Manager may determine a security amount. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It shall be the responsibility of the Applicant to contact the County, upon successful revegetation establishment, to request an inspection for security release nsideration. No Special U ermit shall be issued until this security has been posted. 11,E 'Z 4 LL 01'44 L . 8. The Ap cant shall provide an appy Storm Water Management Plan Pcrmit-from the Colorado Department of Public Health and Environment prior to the issuance of any Special Use Permit from Garfield County. 9. The Applicant shall adhere to the "Construction, Operation, and Maintenance Plan" which is included in the permit application for Storm Water Management Plan for all activity on private land as well as public lands. 10. The Applicant shall provide a construction schedule and indicate where staging areas are to be located to be used during construction to the Planning Department prior to the issuance of a Special Use Permit. 11. A draft agreement between .- -s sated July 26, 2004 was submitted. The agreement contemplates a seven (7) year agreement with the right to extend the agreement another seven years. As a result, the Applicant shall be required to maintain a legal water supply and approval to use the Last Chance Ditch for the proposed life of the water line of 30 years. i12. The Applicant shall prepare and submit a formal fire protection plan to the Rifle Fire Protection District which includes a phone list of supervisory personnel, as it relates to construction activities. This list should also contain phone numbers, office and cell. This plan shall also include measures that address the potential impacts of any fire bans that may be enacted by the County. pL o 3 L Al ‘ I i' LL VA 6, , 0 0,,w 20 Fred Jarman • • From: Matt Sturgeon [msturgeon@rifleco.org] Sent: Monday, July 26, 2004 4:09 PM To: Fred Jarman Cc: jsn@lklawfirm.com; Bill Sappington Subject: Re: Encana on Buckhorn Drive EXHIBIT As we discussed, the City is also working with Encana. They have a site plan application pending for pump station. From a land user perspective, our only concern is with who uses the water. The City has no objection to Encana piping water for its needs, because of the obvious benefit of removing water trucks from the road network. I would recommend the County include language that restricts the use of the pipeline to Encana for gas extraction. The condition might read: "The subject pipeline shall be used to deliver water solely for the applicants use in the extraction of gas. Any secondary taps to the water line by third parties or secondary use by the applicant shall require an amendment to this special use permit and proof that said third parties possess rights to water being distributed through the pipeline." Thanks, Matt Fred Jarman rage 1011 • • EXHIBIT 62,From: Jim Neu Usn@Iklawfirm.com] Sent: Monday, July 26, 2004 4:20 PM To: Fred Jarman; msturgeon@rifleco.org Cc: bsappington@rifleco.org Subject: Re: Encana on Buckhorn Drive Fred, Encana will also need a Watershed District Permit from the City for the construction of the pipeline as it falls within the City's jurisdiction under the Watershed Ordinance and regulated activities. We have already been in contact with them about it, but we would like obtaining to be a condition of the SUP. Thanks, Jim • • Fred Jarman From: Doug Dennison Sent: Thursday, July 22, 2004 2:46 PM To: Fred Jarman Subject: Review of EnCana SUP Application for River Water Pipeline 1 1..1.5, i vi a EXHIBIT Fred, I have reviewed EnCana's application for a Special Use Permit for their proposed river water pipeline and have the following comments: • Due to the size of the disturbance associated with this project (i.e., greater than 5 acres), it is my understanding that this project will also be subject to the Colorado Department of Public Health and Environment's (CDPHE's) stormwater permitting requirements. I would recommend that the applicant either provide a copy of the stormwater permit for this project or provide justification for why no permit is required. If such a permit is required, then it will need to be identified in the list of required permits provided in several locations in the application. • I would also recommend that applicant ensure that they have complied with all of CDPHEs permitting requirements related to discharge of hydro -testing water. If a permit is required, then it will need to be identified in the list of required permits provided in several locations in the application. • I recommend that the applicant be required to provide documentation that they have the rights to the water to be pumped through this pipeline from the Last Chance Ditch. • For consistency with SUP applications I have reviewed for other pipeline projects, I would recommend that the applicant also be required to identify the source of the water that will be used for hydro -testing and demonstrate that they have the required rights to such water. Please let me know if you need more information or have any questions. Doug Dennison Garfield County Oil & Gas Auditor mailto:ddennison(cY�garfield-county.com (970) 625-5691 cell (970) 309-5441 fax (970) 625-0908 7/22/2004 Yage1ot1 • • EXHIBIT Fred Jarman From: Jake Mall Sent: Monday, July 26, 2004 11:17 AM To: Fred Jarman Subject: Encana Permits Fred: Here is a follow up to our conversation regarding Encana's permits. The water pipeline and all construction must stay outside the County ROW. The road crossing permit for the water pipeline will be issued as to the latest drawing when the SUP is final. The road crossing is located in a place that is acceptable to our department. Jake B. Mall 7/26/2004 1 RILL OR MATERIALS AR OflIE -,. 011190. 19.0... wens. ,x1.950 50 vni. 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N 19 vt°II O sararrot-otIs• l•S...an se&o@ 3E Soresc . r ?• �rznr.n 501 moo. iovsner 2...a'PA 5 REFERENCE GRANINGS sm.,' 0.2121 Sa]5,B 50.300. 9 J PA 0 Sri I0..t. y 1.0.19 0306 ' - - - - - - 50.5» W"p5 S srSia noil - ue..v. - - t u 0 �4 8 meg' N m4 50.21.. i0. -.= w aH.z S5.3 LI 08,.5 5.959 e.. >.-., i 9 3 3 s° �.cn 500B % s;aQ°a Sa,s J 0.>e .5 _ 5=555 z ... 032 ,00.0. 4 55 s., %SO ? �+ 55:0IA 5 r15 swsYM 0551.1.0 5 5,µK,. sszv.� yr°s off ENCANA GATHERING SERVICES (USA) INC PROPOSED WATER LINE RICHT—OF—WAY River Waterline from the Last Chance Ditch to the Hunter Mesa Evaporation Pits Located In Sections H. 1.5, 23, 26, 35 & 36, T6S, R93W. 61h P.M. Also, /n Section 1, 77S. R93W, 6th P M. aloe W 550� 5_525 - ssss.5 - I 5550.5 ssaz.J 1 >.: ,..--- �� =� 55 !.T'aT an..' r 5ss's I521x. 50.50.50A 50.50.50A.0.5075.x55 AS STA .0 ias -a✓/ '� i .N • 5s5xS ewes S..tlr°.nup. : � Si t'S (I1 p 1 8 _I55 n ` a yv _ yrv9. '+ 'ate SNX T law' 5551 ..>,.a, \m \ T''p \ Tri State Land .Svrneying. Lte. 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I -i tt i----"-- _ .... vin ___r1 m 91 A z 4 ry.. <, "'. rWm I�/ I /P. 00 1 / II /755 / Pi \3-. ?8 ='' 7i 9\ wli vi ez / / / / / P, . / v.;m / �i - - ____ \ �r 3 c4f 991 m 8 5aza 4 ' 1 7115, 7.37,7140 r r4w.s 226.01 -PO.... vT.Ye£r21oY v 1 n 5, 230. ... 54319 »50.4 yvrrr.F MI 5938.4 s.o: ENCANA GATHERING SERVICES (USA) INC PROPOSED WATER LINE RIGHT—OF— WAY River Waterline from the Last Chance Ditch to the Hunter Mesa Evaporation Pits Located !n Sections 14, 1.5. 23, 26, 35 Rc 36, T6S. R93W, 6th P.M. Also. In Section 1. T7S. 593W, 6th P.M. 54.x3 sne3., Saraller new' 4_x.3 ss..c.. 52SabT 8018,1 visfnufsT '.2... 54n, 21.01- .w. 454.4 45x4 5967-,/ 2822 mtl, 'A VI c _ 59x54 972. 130..02 54x3.8 40 a eaA50' � SIN7r71T wArr 1.1. I% as 533 Tri Stale Land S'vurr ISO NOR. VFRNAI AVE. VERNAL. Uin,, 840/8 '" S1 r..s eC k eq ''G '� a . Prw 5990 544x 5 599 s.. a4rn r.>rz et B - anre Many DETAIL PROFILE 99 1259 I 265+0 - t Rw6 W28 -f Rm6 3090 000. 3 9009 8009 S909 a Jmr'm.,m� Mme. soarNI 9,22 0 992 0050 60. 9940 a 60.3 6065 Sec. 31 Sec. 6 Sec. 6 Sec. 7 P 68 569wbZ ssb6x 75T wax(' 57 5 x aA 93 3. 253+01.05 07 STA 204487 03 11Tv766T 719' ea 578. 538+05.02 r93xre sATY •. vcrerafr �vnrr nsr 10 376 2/0•058, somrxr, num' .07 370 Pl 52 STA 200.21.80 PNAAb SFS.' PI 53 Si& 20.30.44 .176x535+ fame' R.I.w frA 287.61.5+ 203.40 E AY* x66+28 - ✓f* 6147-1.918. f. - 7w93 ry✓ awn — Oar 263+28 — �6+^• 206+23 -f R5+/ 267.7. 21174.76.60 MO STA. 2 1 • • MEMORANDUM To: Fred Jarman From: Steve Anthony Re: Comments on the EnCana Hunter Mesa Waterline Date: July 27, 2004 EXHIBIT Thanks for the opportunity to comment on this permit. My comments are as follows: 1. Noxious Weeds A. Weed Management -The applicant shall provide a written commitment to inspect, monitor, and be responsible for the management of any of Garfield County's Noxious Weeds that may emerge on private lands that are disturbed by the pipeline. This shall be in effect for the life of the pipeline. It is requested that the applicant respond to any complaints by landowners regarding pipeline noxious weeds in a timely manner. It is also recommended that the applicant cooperate with the Bureau of Land Management in developing a weed management plan for any noxious weed infestations that occur on the pipeline within BLM land. 2. Revegetation A. Revegetation Plan -The applicant has provided a revegetation plan that includes a plant material list. B. Revegetation Security -It is the recommendation of this department that the applicant post a revegetation security for the parts of the pipeline that is not on Bureau of Land Management property. Please quantify the surface area disturbed on non -Federal lands so that we may determine a security amount. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It is the responsibility of the applicant to contact the County, upon successful revegetation establishment, to request an inspection for bond release consideration. • ' ,(rased dlarrh .100I APPLICATION 181440ATER LEASE FROM WEST DIVIDE., WATER CONSERVANCY DISTRICT 1. APPLICANT ICANT INFORMATION Name: EnCana Oil & Gas (USA) Inc. Mailing address: 950 17' Street_ Suite 2600 Denver CO 80202 Telephone: 303.623.2300 Authorized aeent: Tim Baer 2. WATER COURT CASE # 3. USE OF WATER RESIDENTIAL (check applicable boxes) ❑ Ordinary household use Number of dweUingL CI Subdivision: No. constructed units: No. vacant lots:_ ❑ Home gardeiVlawtl irrigation of sq. fr. Method of irrigation: 0 flood 0 sprinkler 0 drip 0 other D Non-commercial animal watering ojanimals D hire Protection H''_ll Sharing f1 t'reenteni, for multiple owner wells must be, .vubntitred. COMVIERC1A.L (cheek applicable boxes) Number of units: ._ Total sq_ ft. of commercial units: _ Description of use: D INDUSTRIAL. Description of use: 'f)ritling and Cornnlcrfon of Oil Gas wells located in Garfield County. ColoradQ Evaporation: Maximum water surface to be exposed: 15% Description of any use, other than evaporation, and method of diversion rate of diversion and annual amount of diversion of any water withdrawn from the pond: O M[JNICIPAL Description of use: 4, SOURCE OF WATER SmLcturc: n/a Structure Name: Source: 0 Surface 0 Storage tC Ground water Current Permit # (if applicable) D Direct Pumping: Tributary:. Lesch Crane Ditch Location: Airport/.Marllrn Creel: Exit 5. LOCATION OF STRUCTURE N/A :'oun[y Quarterlquancr Quarter Section Contract .628BP(b) Map 4402 Date Activated 6/28/01 Dates Amended 7/27/02, 5/20/03, 2/19/04 Township kunge hinci Distance of well from section lines Elevation Well Location address: N/A (Attach additional pages jbr multiple structures) 6. LAND ON WHICH WATER WILL BE USED (Legal description may be provided as an ottachmen1.) Number of acres in tract See Agac11 Inclusion into the District, al Applicant's expense, may be equirecl, 7. TYPE OF SEWAGE SYSTEM Q Septic tank/absorption leach field Q Central system 0 Other District nanic: 8. VOLUME OF LEASED WATER NEEDED IN ACRE FEET 350 (miaimum of 1 acre foot) !.eased amount based on diveerviorrs unless cantrattee hos cin augmentation plan o)'submits supporting monthly engineering data. Commercial. municipal. and industrial users !!lust provide diversion and consumptive chart on u month!' basis. A rotuli:ittg flow meter with remote readout is required to he Mantled and usage repotted w iYest Divide. .Applicant expressly acknowledges it has had the opportunity to review the District's,form Water Allotment Contract and agrees• this application is mode pursuant stud subject to the terns and conditions contained therein. Application tc: 1-9-04 A licaill SSiungturr. An(,iicnn, Si�aw� 471 DATE APPROVED; - U WEST DIVIDE WA1'EIZ SERV Sect ctzrY • • T6S R93 W Section 21-24, 25-28, 33-36 T7S R93W Sections 1-4, 9-12, 13-16, 21-24, 25-28 T6S R92W Sections 27-30, 31-34 T7S R92W Sections 3-6, 7-10, 15-18, 19-22 d Man n _'pot APPLICATIONTO AMEND` ATER LEAOil S ROM WEST DIVIDE WATER CONSERVANCY DISTRICT 1. APPLICANT INFORMATION Name: EnCana Oil & Gas (USA) Inc. Mailing address: 950 17th Street, Suite 2600 Denver CO 80202 Telephone: 303.623.2300 Authorized agent: Tim Baer 2. WATER COURT CASE # 3. USE OF WATER ❑ RESIDENTIAL (check applicable boxes) D Ordinary household use Number of dwellings: D Subdivision: No. constructed units: No. vacant lots:_ D Home garden/lawn irrigation of sq. ft. Method of irrigation: 0 flood 0 sprinkler 0 drip 0 other D Non-commercial animal watering of animals D Fire Protection Well Sharing Agreement for,nultiple owner wells must be submitted. COMMERCIAL (check applicable boxes) Number of units: Total sq. ft. of commercial units: _ Description of use: J INDUSTRIAL )escription of use: Drilling and Completion of Oil Sas wells located in Garfield County, Colorado vaporation: Maximum water surface to be exposed: 15% )escription of any use, other than evaporation, and method of liversion rate of diversion and annual amount of diversion of any rater withdrawn from the pond: 1 MUNICIPAL )escription of use: . SOURCE OF WATER tructure: - n/a tructure Name: ource: 0 Surface 0 Storage 0 Ground water urrent Permit # (if applicable) Direct Pumping: Tributary: Loesch Crane Ditch °cation: Airport/Mamm Creek Exit LOCATION OF STRUCTURE N/A runty Quarter/quarter Quarter Section Ccill►ct #010628BP(b) Map #402 Date Activated 6/28/01 Dates Amended 7/27/02, 5/20/03, 2/19/04 Township Range Princi!X\1 Meridian Distance of well from section lines Elevation Well location address: N/A (Attach additional pages for multiple structures) 6. LAND ON WHICH WATER WILL BE USED (Legal description may be provided as an attachment.) Number of acres in tract: See Attached Inclusion into the District, at Applicant's expense, may he equired. 7. TYPE OF SEWAGE SYSTEM ❑ Septic tank/absorption leach field 0 Central system 0 Other District name: 8. VOLUME OF LEASED WATER NEEDED IN ACRE FEET: 350 (minimum of 1 acre foot) Leased amount based on diversions unless contractee has an augmentation plan or submits supporting monthly engineering data. Commercial. municipal, and industrial beers must provide diversion and consumptive data on a monthly basis. A totalizing flow meter with remote readout is required to be installed and usage reported to I.1 -est Divide. Applicant expressly acknowledges it has had the opportunity to review the District's form Water Allotrnent Contract and agrees this application is made pursuant and subject to the terms and conditions contained therein. Application) te:.. 1-9-04 Anolicant Si;nature Annlicant Sienature DATE APPROVED: - /f 7/ WEST DIV r.R CO�ANC ISTRICT By: itWOW Attest: Secretary • • T6S R93W Section 21-24, 25-28, 33-36 T7S R93W Sections 1-4, 9-12, 13-16, 21-24, 25-28 T6S R92W Sections 27-30, 31-34 T7S R92W Sections 3-6, 7-10, 15-18, 19-22 • TRAASMr T TA. LE 1 TER DATE: February 19, 2004 WEST DIVIDE WATER FR CONS•%ANCV D STRICT 109 West Fourth Street, P. 0. Box 1478 Rifle, Colorado 81 3(-1478 Telephone: 97G/625 -S461 Facsimile: 970/625-2796 watercawdwed.orr ro: Tim Baer lantana 011 &. Gas (USA) Inc. 950 Seventeenth Street, Suite 2600 Denver, CO 80202 RE: Amended Contract #010628BP(b) IAM SENDINO YOfJ: Original executed amended contract for 350 acre feet. THESE ARE SENT TO YOU: For your files REMARKS: Sincerely yours, WEST DIVIDE WATER CONSERVANCY DISTRICT cc Division No. 5, Colorado Division of Water Resources w/enclosure Kerry D. Sundeen, Hydrologist w/enclosure rific. V =Li EB 4 poi, STATE OF t01.0 OFFICE OF THE STATE ENGINEER Div i$lon of Water ResourcesSIC 1/ VA r. Department of Natural Resources r. ! 1313 Sherman Street room 818 De.:ver Coln adn an�na Phone (3031866-3581 MAX (303) 866-35$4 www,wate r. state.CO,Us Mr. Edward B. Olszewski Leavenworth & Karp PC PO Drawer 2030 Glenwood Springs, CO 81502 RE: West Divide Water Conservancy District Substitute Water Supply Plan Case No, 02CW123 Water Division 5, Water Districts 38;39. & 45 _.-__c 74 AAft* veerrruci ..7 i, LVV., EXHIBIT le7G rt 811! Ower: Covemnr Greg E. Walcher Executive Director Hal D- Simpson, P.E. Stere Engineer Dear Mr. Olszewski: We have reviewed your request of November 5, 2003 on behalf of the West Divide Water Conservancy District (District) for renewal of the substitute water supply plan for lands in Area A, adjacent to the Roaring Fork River and Colorado River. The request has been processed pursuant to CRS 37-92-308(4), based on the filing of Case No. 02CW123. Additionally, your letter indicated that the District requests issuance of a substitute water supply plan subject to the same terms and conditions as the existing plan. Based on this limitation, certain components of the applications in Case No. 02CW 123, such as the request for alternate points of diversion to the Avalanche Canal and Siphon, have not been considered herein. The District will continue to replace the out -of -priority depletions from ailottees with releases and/or exchanges from Ruedi Reservoir and/or Green Mountain Reservoir. The District has contracted with the Bureau of Reclamation for 100 acre-feet of water from Ruedi Reservoir (contract, No. 2-07070-W0547), for 150 acre-feet of municipal/domestic water and 50 acs -feet of industrial water from Green Mountain Reservoir (contract no. 8-07-60-W0725). Proof of notice es described in CRS 37-92- 308(4)(1!) has been submitted. No objections were received. This substitute water supply plan is hereby approved pursuant to CRS 37-92-308(4), subject to the following conditions: 1. This plan shall be valid through December 31, 2004, unless otherwise revoked or modgiied. Plan renewal requests must be submitted to this office no later than November 15, 2004.-- -. - - . -- _ 2. The District must continue to carefully monitor usage by its aliottpes and augmentation plans to ensure That out -of -priority depletions do not exceed the 100 acre-feet of replacement water available from Ruedi Reservoir, the 150 acre-feet of municipal/domestic water, and the 50 acre-feet of industrial water from Green Mountain Reservoir. Please continue to notify the Division office and this office of the amount and source of any additional water secured by the District for use with this plan. Replacement water used in this plan cannot be sold or leased to any other entity during the term of this approval. 3. As requested by the District, replacements are to be made on the basis of out -of -priority depletions for all allottees operating pursuant to this plan (All allottees included in water court approved plans for augmentation will continue to make replacements pursuant to the terms of their specific court case(s). The District is not required to account for delayed impacts at this time, however at such time as the Division Engineer determines that • • Mr. Edward B. Olszewski Deoember 31, 2003 Page 2 information regarding the timing of depletions from wells is required to prevent injury to other water rights, the District may be required to provide such information for all wells operated pursuant to this pian, 4. All new allottees must submit well permit applications and fees to the Division of Water Resourcces for evaluation. An executed allotment contract, a water diversion calculation sheet, and a map locating the subject well in Area A, which no longer includes lands located above the headgate of the Johnson -Wolverton Ditch, shall be included with each application. An amended map reflecting the deletion of Lands located above the headgate of the Johnson -Wolverton ©itch will be provided by the Division 5 office. Ali applications will be evaluated pursuant to Section 37-90-137, C.R.S., which may require either consent or a hearing prior to the issuance of a well permit if any existing wells are located within 600 feet of the proposed well. The 600 -foot spacing requirement may not apply if the - pumping- lat t the well evil! eot-exreed 15 galior s -pe ntirnute and if ihreaVel viiuf salve or1ly - one residential site. Ones a permit is obtained. all follow up documentation and forms necessary to keep the permit valid must be provided. 5. Excepting the irrigation efficiency assumption, which shall be assumed as 80% for the purposes of this plan, the water use estimates provided application for Case No. 02CW123 are acceptable. However this office reserves the right to evaluate all well permit applications on a case-by-case basis and make adjustments In the water uee estimates as needed to correctly account for diversions and depletions. 6. Please note that all wells incuded in this plan must have a valid well permit authorizing operation of the well underthis plan. Well permits issued pursuant to this pian will typically have a five -digit number followed by an "r' suffix designation. 7. All wells must have a totalizing flow meter installed and maintained in good working order. Permanent records of all diversions must be maintained by the well owner (recorded at least monthly) and submitted on an annual basis to the Division Engineer and Water Commissioner. The well owner shall mark the well in a conspicuous place with the permit number. a. Information concerning the contact person was provided in the request letter (copy attached). Y3_ The District shall submit uadatetl. acceahlir g-ai i to ;on ma asA at -f --- aflotiees change, including notification of all non -renewals or contract cancellations of the Districts allottees. The accounting shall include a report identifying each allottee by name, address, and well permit number, well location, quantity of water allocated, and a monthly diversion schedule. Any restrictions on the use of the allottees' wells shall also be indicated. 10. It Is no longer necessary to submit a separate copy of all approved contracts to this office. A copy of the approved contract must accompany the well permit application at the time It is submitted to this office. 1. Please provide this office, the Division Engineer, and the Water Commissioners. by November 30°i of each year, a comprehensive accounting report for the water year ending October 31 at showing actual diversions, augmentation requirements, river calls, and releases from Ruedi Reservoir and/or Green Mountain Reservoir. Accounting forms are subject to modification and approval by the Division Engineer, • • A copy of the West Divide Water Conservancy District Substitute Water Supply Plan, Case No. 02CW123 approval dated December 31, 2003 was mailed to all of the parties listed below on December 31, 2003. KEVIN L PATRICK RAMSEY L KROPF PATRICK MILLER & KROPF 730 E DURANT STE 200 ASPEN CO 81611 WILLIAM KELLY DUDE ANDERSON, DUDE & LEBEL PC PO BOX 240 COLORADO SPRINGS CO 80901-0240 P'TEIi C. FLntiII b, E3Cl. - _ -- _ :— JILL H. MCCONOUGHY, ESQ, COLORADO RIVER CONSERVATION DISTRICT PQ BOX 1120 GLENWOOD SPRINGS, CO 81802 SHANA SMILOVITS, ESQ. NATURAL RESOURCES SECTION 1525 SHERMAN ST., 5TH FLOOR DENVER, CO 80203 STEPHEN H, LEONHARDT, ESQ. BERNARD F. GEHRIS, ESQ. BURNS, FIGA & WILL, P.C. 6400 S. FIDDLERS GREEN CIRCLE, STE 1030 ENGLEWOOD, CO 80111 07/26/2004 17:35 801366241700000 • \, ENVlkONMLNTAL CONSULTANTS May 21, 2004 SWCA PAGE 02 5o11 Lok. Cary ONK. 230 5ouih 500 Eosr, Suns 380 Salt Lake C.p. UloIN 84102-2015 Tel 801 322 4307 Fox 801.322 4308 www [WCC. Com Attn: Mark Gilfillan US Army Corps of Engineers Colorado/Gunnison Basin Regulatory Office 400 Rood Avenue, Room 142 Grand Junction, Colorado 51501-2563 • RE: Addendum to EnCana's River Water Pipeline Project 404 permit application (GJ -ACOS file #200475167) Dear Mark Gilfil]an: EXHIBIT I N This correspondence is in response to your letter to David Grisso (EnCana) dated May 3, 2004, regarding the following: • Six (6) additional ephemeral washes along the River Water Pipeline Project right-of-way • Water withdrawal information requested for your Section 7 consultation with the US Fish and Wildlife Service (USFWS) Ephemeral Wash Crossings In your letter you requested that we include 6 additional ephemeral washes (appearing as blue lines on the USGS 7.5' quadrangle base map) in addition to the 2 we delineated in our 404 Permit application packet. We acknowledge the US Army Corps of Engineers' jurisdiction over these washes and formally request that our 404 Permit application be modified to include the crossing of 8 ephemeral washes. We submitted a directional bore schematic for the Dry Creek crossing in the initial permit application packet. This is the only wash EnCana intends to directionally bore. The 7 other ephemera] washes will be crossed by open -cut trench. A typical cross section drawing of an ephemeral wash crossing appears in Attachment A. Section 7 Consultation Information Request EnCana's River Water Pipeline Project will withdraw water from the Colorado River via the Last Chance Ditch. Water from the Colorado River is routed into the Last Chance Ditch at a point approximately 7 miles east of Rifle, Colorado. EnCana has purchased the water rights to 500 ae- ft/yr of water for the operation of its water treatment facility. Documentation of purchased the water rights and the history of use of these water rights appears in Attachment B of this letter. 07/26/2004 17:35 801366241700000 SWCA PAGE 03 • , If you have any questions regarding information we have provided, please contact me at your earliest convenience. Regards, James McMillan Soil Scientist / Biologist SWCA Environmental Consultants Attached: Typical ephemeral wash crossing; Section 7 consultation supplemental information 07/26/2004 17:35 801366241700000 SWCA PAGE 04 • • ATTACHMENT A TYPICAL EPHEMERAL WASH CROSSING 07/26/2004 17:35 .l( �-..,, ht 801366241700000 • SWCA • ,`r, r of Cil 011StCt]p11' ,_,),......_—,- ,..- -1= , --,' PAGE 05 SzLT FENCE ;211= Typical ephemeral wash crossing. TRENCH EREAKE. • Rip -Rap; Erosion Control Fabric; or other erosion control Material of Construction• .,` e•.. {.1., t.,- .,� 07/26/2004 17:35 801366241700000 SWCA PAGE 06 • . ATTACHMENT B SUPPLEMENTAL WATER RIGHTS INFORMATION FOR SECTION 7 CONSULTATION 07/26/2004 17:35 801366241700000 • REPLY TO ATTENTION OF SWCA DEPARTMENT OF THE ARMY U.S. ARMY ENGINEER DISTRICT, SACRAMENTO CORPS OF ENGINEERS 1325 J STREET SACRAMENTO, CALIFORNIA 9581 4-292 2 June 9, 2004 Regulatory Branch (200475167) Mr. Al Pfister U.S. Fish and Wildlife Service Ecological Services 764 Horizon Drive, Building B Grand Junction, Colorado 81506-3946 PAGE 07 Dear Mr. Pfister: We are writing to you concerning Department of the Army permit application number 200475167. This application was submitted by EnCana Oil & Gas (USA), Incorporated, seeking authorization to build a river water pipeline to the Hunter Mesa Water Treatment Facility. The project site is located throughout the Dry Creek watershed within Sections 14, 15, 23, 26, 35 and 36 of Township 7 South, Range 93 West, Garfield County, Colorado. We have determined that a net depletion of water resulting from the project may affect the Colorado pikeminnow (Ptychocheilus lucius), bonytail chub (Gila elegans), humpback chub (Gila cypha), and razorback sucker (Xyrauchen texanus), Federally -listed endangered species, and their respective critical habitat. These depletions result from supplying Colorado River water to the water treatment facility. The applicant estimates an average annual 500 acre-feet of water would be consumptively used to operate its facility. We are including the applicant's estimate and water rights. We have noted that the supplemental information identifies only 350 acre- feet of leased water. 07/26/2004 17:35 801366241700000 SWCA PAGE 08 4110 Please provide this office with a copy of the final biological opinion, if necessary, referencing project number 200475167 as soon as possible. Conservation recommendations which you may develop will be considered in a permit decision. If you have any questions, please contact Mr. Mark Gilfillan of this office, telephone 970- 243-1199, extension 15 or email mark.a.gilfillan@usace.army.mil. Sincerely, Ken Jacobson Chief, Colorado/Gunnison Basin Regulatory Office 400 Rood Avenue, Room 142 Grand Junction, Colorado 81501-2563 Enclosure Copies Furnished without enclosure: r. James McMillan, SWCA Environmental Consultants, 230 South 500 East, Suite 380, Salt Lake City, Utah 84102-2015 Mr. David Grisso, EnCana Oil & Gas (USA), Incorporated, 792 Buckhorn Drive, Rifle, Colorado 81650 07/26/2004 17: 35 801366241700000 • swcA ENVIRONMENTAL CONSULTANTS Salt Lake City Office 230 South 500 East, Suite 380 Salt Lake City, Utah 84102-2015 Tel 801,322.4307 Fax 801 322.4308 W01,141 cturn rnm The information conloined to rh:s fecsrmile message is confidential and intended only for the usB of the individual or entity named obove. 11 the reader of this message is nos the intended recipient, you ore hereby notified that any dissemination, distribution or copying of Otis communication is strictly prohibited. If you only hope roCe.ved this IaCSlm Vie in error, please notify us immediately by telephone so that we may arrange for the return of the original to us. Thank you. Should there be a problem with this transmission, please call us at 801.322.4301 SWCA PAGE 01 • RECEIVED JUL 2 6 2004 GARFIELD COUNTY BUILDING & PLANNING Fax Transmission Sheet Attention Fred Company EnCana Job Number 7854-010 Phone Number Fax Number 970-384-3470 Subject COE addendum From James McMillan Date 7/26/2004 Number of Pages (including cover) 8 Message Fred - Here's the 404 Permit addendum for your records. CaII me if you need anything else. James AGREEMENT THIS AGREEMENT is dated the day of , 2004, and is between the LOESCH & CRANN DITCH COMPANY, a mutual irrigation company (the "Company"), and ENCANA OIL & GAS COMPANY (USA), INC., a corporation ("EnCana"). RECITALS: A. The Company is the owner and operator of a ditch known as the Last Chance Ditch in Garfield County, Colorado, diverting water from the Colorado River. B. EnCana is engaged in the exploration, drilling and production of natural gas. EnCana is the contractee of water from the West Divide Water Conservancy District ("Conservancy District") for use in its gas well exploration, drilling and production operations. C. The Company and EnCana desire to put into writing their agreement for the use of the Last Chance Ditch to transport EnCana's Conservancy District water. NOW, THEREFORE, in consideration of the recitals above and the promises set forth below, the parties agree as follows: 1. Agreement for the Conveyance of Water. For a term of seven years, the Company agrees to allow EnCana to utilize the Last Chance Ditch for the diversion and transportation of EnCana's Conservancy District Water, subject to the terms and conditions hereafter set forth. EnCana may extend this Agreement for an additional seven years at a market rate of remuneration the parties agree to negotiate at such time. In the event the parties cannot agree as to a market rate of remuneration, the parties shall submit this issue to bindinz arbitration. • 2. Initial Payment. EnCana will pay the Company Thirty Thousand Dollars ($30,000) within ten (10) ten days of execution of this Agreement. In exchange for said payment, the Company will improve the Last Chance Ditch in accordance with the following provisions beginning in the vicinity of Buckhorn Drive and terminating in the vicinity of Lot 4, Michaelis Subdivision, Rifle, Colorado ("Encana's Pump Station"). A. The Company will install approximately 320 feet of 36" diameter corrugated HDPE pipe and a box with outlets to EnCana's pump station, and other fixtures agreed to by Company and EnCana beginning in the vicinity of Buckhorn Drive and ending at EnCana's Pump Station located in the northeast corner of Lot 4, Michaelis Subdivision. B. In the event the costs associated with the improvements set forth above exceed $30,000, the Company shall be fully responsible for such additional costs. In the event the Company's costs are less than $30,000.00. then the Company shall refund such difference to EnCana within thirty (30) days following. Company's final invoices for labor. materials and services for the improvements. The Company further agrees to complete the installation of the improvements by November 15, 2004 ("Completion Date") at no additional cost to EnCana. EnCana understands that water will not be diverted from the Last Chance Ditch to accommodate construction, and improvements may not be initiated until the 2004 irrigation season is over; provided . however. EnCana ma install a tem ora .um. to feed water to its .unm.ino station durinihe construction period` t long as such temporary pumping does not interfer with deliveries to Company's shareholders or interfer with installation of improvements by Company. C. The Company will be the owner of all improvements installed by it. EnCana will be the owner of all improvements installed by EnCana, including the valve site at the EnCana Pump Station. Each party shall be fully responsible for all maintenance and repairs of its property. 2 Deleted: • The Company shall have access to the valve site located between the HDPE pipe and the pump station at all times, and may notifY EnCana of its request to decrease the delivery of water through EnCana's valve so as to assure delivery of water to its shareholders having prior rights :_provided however, the Company shall not decrease deliveries to EnCana so long as the ditch capacity will carry the decreed rights of Companv and EnCana's conservancy district water and. in anv event. the Company shall provide EnCana with 48 hours advance notice of any requested decrease in deliveries such that EnCana's personnel perform any valve adjustments. 3. Remuneration. EnCana shall pay to the Company remuneration at the rate of eight cents ($0.08) per barrel of water conveyed through the Last Chance Ditch to the Pump Station during the first year of this Agreement, nine cents ($0.09) per barrel of water conveyed through the Last Chance Ditch to the Pump Station for the second year of this Agreement, and ten cents ($0.10) per barrel of water conveyed through the Last Chance Ditch to the Pump Station for the third through seventh years of this Agreement. The first year of this Agreement shall be deemed to have commenced on the date of first use of EnCana's Pump Station, with each anniversary date being measured from the commencement date. This Agreement is intended to encompass only such water as is withdrawn from the Last Chance Ditch at EnCana's Pump Station. 4. Monitoring and Payment. EnCana shall develop and consistently monitor and gauge on a monthly basis all water withdrawn from the Last Chance Ditch pursuant to this Agreement. At all times, upon reasonable notice, not to exceed forty-eight (48) hours, the Company shall have the right to inspect and monitor the gauges, meters and other devices used to measure the withdrawal of water pursuant to this Agreement. Such records shall be provided to the Company, and the Company shall invoice EnCana based on the records provided. EnCana shall make payment of each invoice within thirty (30) days after the receipt thereof. 3 Deleted: exercise control of the valve as necessary to 5. Other Terms and Conditions. A. The diversion and delivery of EnCana's Conservancy District water through the Last Chance Ditch shall be subject to the prior right of Loesch and Crann Ditch Company shareholders to the diversion and delivery of their water through the Last Chance Ditch. At no time may EnCana transport more than 1.00 c.f.s. through the Last Chance Ditch without written permission of the Directors of the Company. B. This Agreement is not intended to limit or modify existing arrangements for the extraction of EnCana's Conservancy District water by water truck haulers at other points of diversion, including the rate of payment thereof at ten cents ($0.10) per barrel. C. EnCana shall indemnify and hold the Company and its shareholders harmless from any loss or liability arising from or in connection with the diversion, delivery or withdrawal of EnCana's Conservancy District water pursuant to this Agreement. D. EnCana shall be solely responsible for acquiring any permits, licenses or easements from third parties which are necessary for exercise of its rights under this Agreement. 6. Default and Termination. Default shall be deemed to have occurred upon either party's failure or refusal to perform any term or condition of this Agreement, provided thirty (30) days' notice of default is given to the defaulting party by the non -defaulting party and the defaulting party fails or refuses to either cure or commence curing such default and diligently prosecuting curation efforts to conclusion. In the event of a default on the part of EnCana, the Company may terminate this Agreement and recover the amount of any unpaid remuneration due pursuant to this Agreement and enforce the provisions of paragraph 5D hereof, as may be necessary. In the event of 4 • • a default on the part of the Company, EnCana may, at its option, terminate this Agreement and shall have as its sole remedy recovery from Company of liquidated damages not exceeding $30,000, reduced by $500.00 for each month this agreement has remained in effect prior to declaration of breach. No consequential or special damages shall be recoverable by EnCana. In any legal proceeding brought to enforce the terms hereof, the prevailing party shall be entitled to recover reasonable attorneys' fees and court costs. All notices shall be mailed U.S. mail, postage prepaid, to the following addresses: The Company:P.O. Box 365 Rifle, Colorado 81650 and c/o Stuver, LeMoine & Burwell, P.C. 120 West Third Street Rifle, Colorado 81650 EnCana: 792 Buckhom Drive Rifle, Colorado 81650 7. Termination. This Agreement shall terminate, in any event, should EnCana cease utilizing the Last Chance Ditch for a period exceeding 12 consecutive months or, should the amount paid by EnCana pursuant to this Agreement decline below $5,000.00 for any 12 consecutive month period, This paragraph shall not require EnCana to deliver any minimum quantity of water through the Last Chance Ditch. Notwithstanding. EnCana's failure to deliver water through the Last Chance Ditch for any 12 consecutive months. EnCana may keep this Agreement in full force and effect by the tender of $5,000.00 to Company in lieu of actual water deliveries. 8. Benefit. The terms and provisions of this Agreement are intended to bind and benefit the parties and their respective heirs, successors and assigns. 9. Permission Required. EnCana may not sublet or assign its rights under this Agreement without the written permission of the Directors of the Loesch and Crann Ditch Company. 5 STATE OF COLORADO ) )ss. COUNTY OF GARFIELD ) The foregoing instrument was acknowledged before me this day of 2004, by James G. Snyder, President, Loesch & Crann Ditch Company. Witness my hand and official seal. My Commission expires: STATE OF COLORADO ) )ss. COUNTY OF GARFIELD ) • Notary Public The foregoing instrument was acknowledged before me this day of 2004, by Joel S. Fox, Attorney -in -Fact, EnCana Oil & Gas Company (USA), Inc. Witness my hand and official seal. My Commission expires: 7 Notary Public • • DATED the year and day first above written. LOESCH & CRANN DITCH COMPANY, a mutual irrigation company By: James G. Snyder, President ENCANA OIL & GAS COMPANY (USA), INC., a corporation By: Joel S. Fox, Attorney -In -Fact 6 : :M . E S URGE • MINIM ■ ■■■■ E N G I N E E R I N G INC. Fred Jarman Garfield County Building & Planning Department 108 8th St, Suite 201 Glenwood Springs CO 81601 RE: Encana "River Water" Pipeline — Special Use Permit Review Dear Fred: 2 EXHIBIT p July 28, 2004 At the request of Garfield County, Resource Engineering, Inc. (RESOURCE) has reviewed the Special Use Permit Application from Encana Oil & Gas (USA), Inc. for a proposed pipeline from their property in South Rifle to the Hunter Mesa water treatment facility. *rhe submittal included the application dated April 9, 2004, updated plan sheets dated June 28, 2004, and a packet of material on water rights including a draft agreement to use the Last Chance Ditch. Our comments are outlined below. SUMMARY The proposed Special Use Permit Application appears to meet the technical criteria for the Special Use requirements in Section 5.03, the specific requirements in Section 5.03.07, and the standards in Section 5.03.08 of the Garfield County Zoning Regulations. The requirements of each section are more specifically discussed below. SPECIAL. USE GENERAL REQUIREMENTS The general requirements for any special use include providing adequate water and wastewater service and adequate road improvements and/or access for the proposed use. The proposed special use does not require potable water or wastewater services and would reduce hauling of water by truck traffic after construction is completed. The temporary construction traffic does not appear to require any road improvements. INDUSTRIAL OPERATIONS REQUIREMENTS Section 5.03.07 of the County Zoning Regulations outlines additional specific criteria for Industrial operations. These criteria require that the applicant prepare and submit an impact statement of the proposed use. The application addresses each of the items in Section 5.03.07. EnCana currently holds a West Divide Water Conservancy District water allotment contract for 350 acre feet of Ruedi Reservoir replacement water for its operations in the Colorado River basin. We confirmed with the Division of Water Resources that EnCana can divert its water into the Last Chance Ditch through an administrative direct exchange (no State approval is required). EnCana must obtain approval from owners of the Last Chance Ditch (Loesch & Crann Ditch Company) or seek judicial approval to convey its water thrcugh the ditch. A draft agreement between the parties dated July 26, 2004 was submitted. The agreement contemplates a seven year agreement with the right to extend the agreement another seven years. The County may want to include a Consulting Engineers and Hydrologists 909 Colorado Avenue 1 Glenwood Springs, CO 81 601 :. (970) 945-6777 ■ Fax (970) 945-11 37 • . Fred Jarman Page 2 July 28, 2004 provision that the applicant must maintain a legal water supply and approval to use the Last Chance Ditch. Please call if you have any questions or need additional information. Sincerely, RESOURCE EN3INEERING, INC. Michael J. rion, P.E. Water Ri. source Engineer MJE/dlh 885-23.1 E:\Client\885\fj river water pipeline 885.doc IBJ 'C 1VED JUL 2 8 2004 GARFIELD COUNTY BUILDING & PLANNING RESOURCE ENGINEERING I N C. IN REPLY REFER To: COC -67714 (C0140) • • United States Department of the Interior BUREAU OF LAND MANAGEMENT Glenwood Springs Resource Area 50629 Highway 6 and 24 P.O. Box 1009 Glenwood Springs, Colorado 81602 July 16,'2004 CERTIFIED MAIL 7002 2030 0000 4593 0616 RETURN RECEIPT REQUESTED EnCana Oil & Gas (USA) Inc. ATTN. John Leacock 792 Buckhorn Drive Rifle, CO 81650 4 cq �//l 4ao y ) 44414 DECISION Cost Recovery Category Determined for Right -of -Way COC -67714 We are worcing on your right-of-way application COC -67714, the River Water Pipeline, south of Rifle, Colorado. Required resource inventories have been completed. Regulations at CFR 2808.3-1 establish a cost recovery fee schedule for both processing and monitoring fees. It has been determined that your application falls under Category III. Under this category, you are required to pay a p:focessing fee in the amount of $550.00 and a monitoring fee of $100.00 ($650.00 total), please submit this amount to the Glenwood Springs Field Office at the letterhead (PO Box) address. In regards to the cost recovery decision; this decision may be appealed to the Interior Board of Land Appeals in accordance with the regulations in Title 43 of the Code of Federal Regulations, Part 4.400 and the enclosed form CSO 1840- 3. If an appeal is taken, the notice of appeal must be filed in this office at the above address within 30 days from receipt of this decision. The appellant has the burden of showing that the decision is in error. Please note, however, that under the regulations in 43 CFR 2804.1(b), this decision is effective even if an appeal is filed. Therefore, if the application is to be processed, payment of the non -returnable application processing fee must be made. If Ln appeal is taken, this money will be held in escrow and processing will contir.ue until the appeal is resolved. Enclosure: form 1840-3 Sincerely, Steve Bennett Associate Field Manager RECEIVED JUL 2 9 2004 F'.{ '^k LD COUNTY G & PLANNING CSO 1840-3 (April 2002) • UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT INFORMATION ON TAKING APPEALS TO THE BOARD OF LAND APPEALS DO NOT APPEAL UNLESS 1. This decision is adverse to you, AND 2. You believe it is incorrect. IF YOU APPEAL, THE FOLLOWING PROCEDURES MUST BE FOLLOWED 1. NOTICE OF APPEAL Within 30 days, file a Notice of Appeal in the office which issued this decision (see Secs. 43 CFR 4.411 and 4.413). You may state your reasons for appealing, if you desire. 2. WHERE TO FILE BUREAU OF LAND MANAGEMENT NOTICE OF APPEAL GLENWOOD SPRINGS FIELD OFFICE P 0 BOX 1009 GLENWOOD SPRINGS, CO 81602 SOLICITOR REGIONAL SOLICITOR ALSO COPY TO ROCKY MOUNTAIN REGION 755 PARFET ST., SUITE 151 LAKEWOOD, COLORADO 80215 3. STATEMENT OF REASONS.. Within 30 days after filing the Notice of Appeal, file a complete statement of the reasons why you are appealing. This must be filed with the United States Department of the Interior, Office of the Secretary, Board of Land Appeals, 801 N. Quincy St., Suite 300, Arlington, Virginia 22203 (see 43 CFR Secs. 4.412 and 4.413). If you fully stated your reasons for appealing when filing the Notice of Appeal, no additional statement is necessary. SOLICITOR REGIONAL SOLICITOR ALSO COPY TO ROCKY MOUNTAIN REGION 755 PARFET ST., SUITE 151 LAKEWOOD, COLORADO 80215 4. ADVERSE PARTIES Within 15 days after each document is filed, each adverse party named in the decision and the Regional Solicitor or Field Solicitor having jurisdiction over the State in which the appeal arose must be served with a copy of: (a) the Notice of Appeal, (b) the Statement of Reasons, and (c) any other documents filed (see 43 CFR Sec. 4.413) Service will be made upon the Associate Solicitor, Division of Energy and Resources, Washington, D.C. 20240, instead of the Field or Regional Solicitor when appeals are taken from decisions of the Director (W0-100). . PROOF OF SERVICE Within 15 days after any document is served on an adverse party, file proof of that service with the United States Department of the Interior, Office of the Secretary, Board of Land Appeals, 801 N. Quincy St., Suite 300, Arlington, Virginia 22203. This may consist of a certified or registered mail "Return Receipt Card" signed by the adverse party (see 43 CFR 4.401(c)(2)). • 1 Unless these procedures are followed your appeal will be subject to dismissal (see 43 CFR 4.402). Be certain that all communications are identified by serial number of the case being appealed. NOTE: A document is not filed until it is actually received in the proper office (see 43 CFR Sec. 4.401(a)). 6. REQUEST FOR STAY Except where program -specific regulations place this decision in full force and effect or provide for an automatic stay, the decision becomes effective upon the expiration of the time allowed for filing an appeal unless a petition for stay is timely filed (see 43 CFR 4.21). If you wish to file a petition for a stay of the effectiveness of this decision during the time that your appeal is being reviewed by the Board, the petition for a stay must accompany your notice of appeal. A petition for a stay is required to show sufficient justification based on the standards listed below. Copies of the Notice of Appeal and petition for a stay must also be submitted to each party named in this decision and to the Interior Board of Land Appeals and to the appropriate Office of the Solicitor (see 43 CFR 4.413) at the same time the original documents are filed with this office. If you request a stay, you have the burden of proof to demonstrate that a stay should be granted. STANDARDS FOR OBTAINING A STAY Except as otherwise provided by law or other pertinent regulation, a petition for a stay of a decision pending appeal shall show sufficient justification based on the following standards: (1) The relative harm to the parties if the stay is granted or denied, (2) The likelihood of the appellant's success on the merits, (3) The likelihood of immediate and irreparable harm if the stay is not granted, and (4) Whether the public interest favors granting the stay. SUBPART 1821.2 --OFFICE HOURS; TIME AND PLACE FOR FILING Sec. 1821.2-1 Office hours of State Offices. (a) State Offices and the Washington Office of the Bureau of Land Management are open to the public for the filing of documents and inspection of records during the hours specified in this paragraph on Monday through Friday of each week, with the exception of those days where the office may be closed because of a national holiday or Presidential or other administrative order. The hours during which the State Offices and the Washington Office are open to the public for the filing of documents and inspection of records are from 10 a.m. to 4 p.m. standard time or daylight saving time, whichever is in effect at the city in which each office is located. Sec. 1821.2-2(d) Any document permitted to be filed under the this chapter, which is received required or regulations of in the State Office or the Washington Office, either in the mail or by personal delivery when the office is not open to the public shall be deemed to be filed as of the day and hour the office next opens to the public. (e) Any document required by law, regulation, or decision to be filed within a stated period, the last day of which falls on a day the State Office or the Washington Office is officially closed, shall be deemed to be timely filed if it is received in the appropriate office on the next day the office is open to the public. See 43 CFR 4.21 for appeal general provisions. • MEMORANDUM To: Fred Jarman From: Steve Anthony Re: Amended Comments on the EnCana Waterline Date: August 2, 2004 • �j Fred, Now that I have been provided with a quantification of the private land area to be disturbed, I have calculated an amount for a revegetation security. I would like to amend my comments of July 27, 2004 to include the comments below. 2. Revegetation A. Revegetation Plan -The applicant has provided a revegetation plan that includes a plant material list. B. Revegetation Security -It is the recommendation of this department that the applicant post a revegetation security for the parts of the pipeline that is not on Bureau of Land Management property. The surface area to be disturbed and subsequently revegetated has been quantified as 26.13 acres. Based on a figure of $1000 per acre for reclamation costs. The total recommended security amount totals $26,000. This may be in the form of a letter of credit, if deemed appropriate by the County Attorney's Office, or the funds by may be deposited with the County Treasurer. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It is the responsibility of the applicant to contact the County, upon successful revegetation establishment, to request an inspection for bond release consideration. STUVER, LEMOINE & BURWELL, P.C. ATTORNEYS AT LAW 120 WEST THIRD STREET P. 0. BOX 907 RIFLE, COLORADO 81650 THOMAS W. STUVER DANIEL D. LEMOINE BARBARA C. BURWELL July 29, 2004 Garfield County Commissioners 108 Eighth Street, Suite 213 Glenwood Springs, CO 81601 TELEPHONE 970 - 625-1887 FAX 970 - 625-4448 RE: EnCANA OIL & GAS COMPANY (USA), INC. / LOESCH & CRANN DITCH CO. Dear Commissioners: This firm represents the Loesch & Crann Ditch Company, the owner and operator ofthe Last Chance Ditch. This confirms that the Board of Directors of the Ditch Company has agreed to allow EnCana to utilize the Last Chance Ditch for diversion and transportation of West Divide Water Conservancy District water under the terms of an Agreement, an unsigned copy of which is attached to this letter. Representatives of the Loesch & Crann Ditch Company are prepared to execute the Agreement, without variation in its terms, when it is executed by EnCana Oil & Gas Company (USA), Inc. Very truly yours, STUVER, LeMOINE Thomas „r. Stuver BURWELL, P.C. TWS:skl Enclosure pc w/copy of enc.: Loesch & Crann Ditch Company • • AGREEMENT THIS AGREEMENT is dated the day of , 2004, and is between the LOESCH & CRANN DITCH COMPANY, a mutual irrigation company (the "Company"), and ENCANA OIL & GAS COMPANY (USA), INC., a corporation ("EnCana"). RECITALS: A. The Company is the owner and operator of a ditch known as the Last Chance Ditch in Garfield County, Colorado, diverting water from the Colorado River. B. EnCana is engaged in the exploration, drilling and production of natural gas. EnCana is the contractee of water from the West Divide Water Conservancy District ("Conservancy District") for use in its gas well exploration, drilling and production operations. C. The Company and EnCana desire to put into writing their agreement for the use of the Last Chance Ditch to transport EnCana's Conservancy District water. NOW, THEREFORE, in consideration of the recitals above and the promises set forth below, the parties agree as follows: 1. Agreement for the Conveyance of Water. For a term of seven years, the Company agrees to allow EnCana to utilize the Last Chance Ditch for the diversion and transportation of EnCana's Conservancy District Water, subject to the terms and conditions hereafter set forth. • • 2. Initial Payment. EnCana will pay the Company Thirty Thousand Dollars ($30,000) within ten (10) ten days of execution of this Agreement. In exchange for said payment, the Company will improve the Last Chance Ditch in accordance with the following provisions beginning in the vicinity of Buckhorn Drive and terminating in the vicinity of Lot 4, Michaelis Subdivision, Rifle, Colorado ("Enema's Pump Station"). A. The Company will install approximately 320 feet of 36" diameter corrugated HDPE pipe and a box with outlets to EnCana's pump station, and other fixtures agreed to by Company and EnCana beginning in the vicinity of Buckhorn Drive and ending at EnCana's Pump Station located in the northeast corner of Lot 4, Michaelis Subdivision. B. In the event the costs associated with the improvements set forth above exceed $30,000, the Company shall be fully responsible for such additional costs. The Company further agrees to complete the installation of the improvements by November 15, 2004 ("Completion Date") at no additional cost to EnCana. EnCana understands that water will not be diverted from the Last Chance Ditch to accommodate construction, and improvements may not be initiated until the 2004 irrigation season is over; provided, however, EnCana may install a temporary pump to feed water to its pumping station during the construction period as long as such temporary pumping does not interfere with deliveries to Company's shareholders or interfere with installation of improvements by Company. C. The Company will be the owner of all improvements installed by it. EnCana will be the owner of all improvements installed by EnCana, including the valve site at the EnCana Pump Station. Each party shall be fully responsible for all maintenance and repairs of its property. 2 • • The Company shall have access to the valve site located between the HDPE pipe and the pump station at all times, and may exercise control of the valve as necessary to assure delivery of water to its shareholders having prior rights; provided, however, the Company shall not decrease deliveries to EnCana so long as the ditch capacity will carry the decreed rights of Company and EnCana's conservancy district water. 3. Remuneration. EnCana shall pay to the Company remuneration at the rate of eight cents ($0.08) per barrel of water conveyed through the Last Chance Ditch to the Pump Station during the first year of this Agreement, nine cents ($0.09) per barrel of water conveyed through the Last Chance Ditch to the Pump Station for the second year of this Agreement, and ten cents ($0.10) per barrel of water conveyed through the Last Chance Ditch to the Pump Station for the third through seventh years of this Agreement. The first year of this Agreement shall be deemed to have commenced on the date of first use of EnCana's Pump Station, with each anniversary date being measured from the commencement date. This Agreement is intended to encompass only such water as is withdrawn from the Last Chance Ditch at EnCana's Pump Station. 4. Monitoring and Payment. EnCana shall develop and consistently monitor and gauge on a monthly basis all water withdrawn from the Last Chance Ditch pursuant to this Agreement. At all times, upon reasonable notice, not to exceed forty-eight (48) hours, the Company shall have the right to inspect and monitor the gauges, meters and other devices used to measure the withdrawal of water pursuant to this Agreement. Such records shall be provided to the Company, and the Company shall invoice EnCana based on the records provided. EnCana shall make payment of each invoice within thirty (30) days after the receipt thereof. 3 • • 5. Other Terms and Conditions. A. The diversion and delivery of EnCana's Conservancy District water through the Last Chance Ditch shall be subject to the prior right of Loesch and Crann Ditch Company shareholders to the diversion and delivery of their water through the Last Chance Ditch. At no time may EnCana transport more than 1.00 c.f.s. through the Last Chance Ditch without written permission of the Directors of the Company. B. This Agreement is not intended to limit or modify existing arrangements for the extraction of EnCana's Conservancy District water by water truck haulers at other points of diversion, including the rate of payment thereof at ten cents ($0.10) per barrel. C. EnCana shall indemnify and hold the Company and its shareholders harmless from any loss or liability arising from or in connection with the diversion, delivery or withdrawal of EnCana's Conservancy District water pursuant to this Agreement. D. EnCana shall be solely responsible for acquiring any permits, licenses or easements from third parties which are necessary for exercise of its rights under this Agreement. 6. Default and Termination. Default shall be deemed to have occurred upon either party's failure or refusal to perforin any term or condition of this Agreement, provided thirty (30) days' notice of default is given to the defaulting party by the non -defaulting party and the defaulting party fails or refuses to either cure or commence curing such default and diligently prosecuting curation efforts to conclusion. In the event of a default on the part of EnCana, the Company may terminate this Agreement and recover the amount of any unpaid remuneration due pursuant to this Agreement and enforce the provisions of paragraph 5D hereof, as may be necessary. In the event 4 of a default on the part of the Company, EnCana may, at its option, terminate this shall have as its sole remedy recovery from Company of liquidated damages not Agreement and reduced by $500.00 for each month this agreement has remained in effectexceeding $30,000, breach. No consequential or special damages shall be recoverable prior to declaration of proceeding brought to enforce the terms hereof, theprevailingby EnCana. In any legal reasonable attorneys' fees and court costs. All notices Pte' shall be entitled to recover shall be mailed U.S. mail, postage prepaid, to the following addresses: The Combanv: P.O. Box 365 Rifle, Colorado 81650 and c/o Stuver, LeMoine & Burwell, P.C. 120 West Third Street Rifle, Colorado 81650 EnCana: 792 Buckhorn Drive Rifle, Colorado 81650 7. Termination. This Agreement shall terminate, in any event, should EnC ease utilizing the Last Chance Ditch for a period exceeding 12 consecutive months or, shouldana ount paid by EnCana pursuant to this Agreement decline below $5,000.00 for any the amount period. This paragraph shall not require EnCana to deliver anyminimum 12 consecutive month the Last Chance Ditch. Notwithstanding EnCana's failure to de quantity of water through Ditch for any 12 consecutive months, EnCana maykeepliver water through the Last Chance the tender of $5,000.00 to Company in lieu of ac this Agreement in full force and effect by actual water deliveries. 8. Benefit. The terms and provisions of this Agreement are intended to bind the parties and their respective heirs, successors and assigns. and benefit 5 9. Permission Required. EnCana may not sublet or assign its rights under this Agreement without the written permission of the Directors ofthe Loesch and Crann Ditch Company. DATED the year and day first above written. STATE OF COLORADO COUNTY OF GARFIELD )ss. LOESCH & CRANN DITCH COMPANY, a mutual irrigation company By: James G. Snyder, President ENCANA OIL & GAS COMPANY (USA), INC., a corporation By: Joel S. Fox, Attorney -In -Fact The foregoing instrument was acknowledged before me this da of by James G. Snyder, President, Loesch & Crann Ditch Company. y 2004, Witness my hand and official seal. My Commission expires: Notary Public STATE OF COLORADO ) )ss. COUNTY OF GARFIELD ) The foregoing instrument was acknowledged before me this day of 2004, by Joel S. Fox, Attorney -in -Fact, EnCana Oil & Gas Company (USA), Inc. Witness my hand and official seal. My Commission expires: 6 Notary Public • • REV. 07/19/04 REVISED FOR RIVER PIPEINE INSULATION ALL SIDES AND LID w 0 x w 0 2" VENT -O -MAT 050 RBX 2521' 2" THREADED BALL VALVE, BRONZE 2" NIP TOE, SCHD. 80, GR B 4" X 2" CONC. RED., STD., GR B 4" PIPE, CS, STD, BE, GR. B NOT TO SCALE FIo i _ f l Z r r`rn nl ii n�ni n1 i nim -I. l i iii I If_iTf� I Ern=fr I I� I =�=� i I I I I I II I I�I I f111 1 W11 III ----L111=- TI I= 11= 8" ANCHOR FLANGE, STD. WT DESCRIPTION 6 c U ui 0 U W p W LLZ O 00 zQ O co 'v z OF ZWU JZi 350 W 0 w U W H J 0>IW0 m4H a U W Z W> W -J co0 J > QQ a ~ a en ° W 0 (7w I-0 otf z 0 3 a r = LL z j 02 U cc z W H. P. VENT VALVE 7-19-04 O U w m 2 7 COO Z 0 0 0) 0 0 O 00)) 0 0 0 O O N 0 0 1- F LL U U 8" ANCHOR FLANGE TYP. W/ CONCRETE THRUST BLOCK 2" THREADED BALL VALVE, BRONZE 2" VENT -O -MAT 050 RBX 2521 BRONTE/TMC VALVE ENCLOSURE 8" x 4" RED. TEE, CS, STD., GR. B 4" PIPE, STD. GR. B 2" PIPE NIP., CS, SCH. 80, TOE (1)z a to D o o o o J O I-- 2 W N f') V' )0 t0 1,- CO 0) ~ 0 0 0 0 0 0 0 0 0 Encana 8" W Board of County Commissioners August 2, 2004 1:15 Surrou, ding Land Use "'J.�/ Proiect Specifics Applicant Encana oil & Gas USA 'Proposal Construct 8" waterline 'Zoning ARRD / OS Waterline Route = Rifle to Hunter Mesa Water Treatment Facility Length = .87 miles across 7 private & 2 public properties Material = Steel - -Depth = 5 o 6 feet Amount = elivering 500,000 gallons of water a day Source = 50 acre feet through Last Chance Ditch -Public Roa Crossing = CR 319 ROW = 70' and 50' e I r-. xSa. - f -- ammo 1 • • Staff recommends approval with th conditions found on page 19 and 20 2