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• Landowner List • Right-of-Way Easements / Statements of Authority ■ Quit Claim Deed (Water Rights) • Statement of Opinion (Re: Availability of Water) HUNTER MESA TO PUMBA LANDOWNER LEST (Revised 10-15-10) County Parcel # Lartdo wner Coact Info./ Wallin Address Legal Description Cold 2403-123-00-026 403-121-00-084 Shaeffer Limited NE by NE. LLLP Harold Shaeffer 51927 County RD 310 Rifle C081650T7S, Phone: (970) 876-2819 - R93W, Sec 12 _ Garfield 2177-362-00-345 E1e rzet John t}enzel 960 E. Saddlet'rarrr Road Sedans, AZ 86351 Phone: (928) 284-0716 'US. R9i3W, Sec 2 Y66, R02W, Sea; 35 Garfield 2f77-262.00-956 Lit NI BLM Colorado River Valley Field OfficeTOS, 2300 Rimer Fro rarg°e Rd. Sift, CO 81052 Phone: (970) 876-9000 R92W, Sec 34 & 35 T7S, ROW, Sec 3 & 10 PROPERTY OWNERS ADJACENT 7O OR WITHIN 20W OF PROPOSED PIPELINE_ ROW G:arf,cei 193-i I I -o6 -t??.$' Rebtak, LLLP 5957 County Road 319 Rine, CO 81650 Cari+cref 24(63• e;iieo .0 oadarn, Keith a. & Vicky P.O. Box 1047 Rifle, C081660 G�.�rlieicfParadise, 47 3,11 r•,a �g� Charles & Clancy 257 N. Cedar Springs Ranch Rd %lie, CO 91650 Curt e d A" 0 3 -0'.3' f X60'9 Touchton, Jeanette & James Andrew 1215 N. Cedar Springs Ranch Rd. Ri1Te. Co 81€150 �,��,tcci 1 �'�5�j --5 Sugar, Michael &Linda o arRifle. 0143 Gage Rd. CO 81650 Garfield �s3 dk9' `� � Wallace, Gary &PatriciaP 0_ fur 201 Rine. CO 81650 4 r Garfield .� ri���r' Til"DQ 37 Holzer, flans Ulrich P.O. Boat 11928 Aspen, CO 816t2 E a rfieid r` r •I)°00.0.11' K.R.K. LTD. 8606 h tali firs Day Drive miser, CO 80'550 IN FAF3'h1°iiA +ihriahltediki IN 11 II • Reeeptionti: 793958 , sa.c4 art ]est? E?rbeeuce 1 ,At l etc Fes $4t CO Doc f=sa-C.P:S CARrrft- CU.uvrY to PIPELINE AND RIGHT OF WAY GRANT KNOW ALL MEN BAY THESE PRESENTS: That SFHAEFFER, LTD, a Colorado limited partnership, and NE BY NE LLLP, a Colorado limited liability (united partnership, whose address is 5957 County Road 319, Rifle, Colorado 81650 hereinafter called "Grantor", for and in consideration of the sunt of Ten Dollars (Sl0.O4) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, do herby grant and convey onto Encana Oil & Gas (USA) Inc., with an address or 370 1r Street, Suite 1700, Denver, Colorado 80202, hereinafter called "Grantee", a non-exclusive easement and right- of-way with ingress and egress to locate, lay, maintain, inspect, replace, erect, resizc, operate, and remove one or more pipelines and such drips, selves, fittings, meters, and other equipment and appurtenances as may Ix necessary for the operation, over, through, upon, under anti across the following do crilrcd lands ice Ciatprld County, Colorado 10 writ Township 7 nut ls.„,_Rarnne 93 West, 6f° P.M. Section r2: N. zNta The location of the easement and nght•of-way granted is described on Exhibit A and is fifteen fora (15') on either side of the constructed pipeline as it roans through the above referenced lands and in addition, Grantee shall have the right to use an additional temporary work space, which shall be an additional width of twenty - live feet (25') along the easement for the considerativrt stagy! above. Thc additional temporary work space shall in no case endure for a petiad in CXCsss of one hundred eighty (180) days from the date hereof or the completion of initial installation, whichever period is the shorter. Grantee agrees that any pipeline installed shall tar di 4 minimum depth of forty-eight (4(r) below the serrfacc a f the ground. TO HAVE AND TO HOLD rano Grantee, the easement, rights and privileges herein granted and conveyed fora period of rt,an (2) years following Grantee's abandonment of the pipelines installed hereunder. Grantee :shall have AI other rights dad benefits necessary or convenient for the full enjoyment or use of the rights herein granted. Grantee hereby agrees to pay Crarntar a one-time consideration, previously agreed upon, ars full consideration for the pipelines and right -of way rights herein described. Crarrtu'r shall have the right to use and enjoy the above-described premises, subject to the rights herein grained. The pipeline right-of-way grunted herein shall bc utilized for Grantee's oil and gas operations only and shall not bc used for any other purpose, Grantor shall not interfere wvith or impair or perrnit others to interfere with or impair in any way the exercise of the rights therein granted to Grantee, and Grantor shall not build, construct, or permit to be built or constructed, any structure or obstruction over pipeline right-of-way. All pipelines) cnrlstrurlcd and maintained under the terrns of this Agreement shall be caortsiretctcd and ntaintairted in accordance with that certain Surface Use Agreement dated February 1. 2005 (SUA). In the event there is a conflict between this Pipeline aiul Right -of -Way Grant and the SUA, the roans of the SUA shall govern and conirnl the parties hereto. This Grant is a covenant running with the land and shall be binding upon the parties hereto, their heirs, devisees, representatives, succesxvPS and assigns, and the rights, privileges arid authorities herein granted shall be assignable together or separately and in Nvhole or in pan. Ill Iril " ii ilelaVil: li . tldtf,litl 1101 1Ye+cept Iona! : 79,393 f 7 J99‘76110 111:5$ 09 Sti l-I+J+'. A trn. r, Oi c 4 2 a 7 Fre Fre,34O pec F•ee 0.00 GLFFIELr} CalydTY CO This instrument covers the entire agreement between the parties, and no representation of statements, verbal or written, have been made rnodifying, adding to, or changing the terms of this Grant. WJThESS the signature(s) otthe parties hereto on this 13th rfay of October, 20ib. GRA TOR! NE BY NE LLD /y: b ,11Are t.,le ; 4(., 4"w/ /Jf .7/1/4 -` Harakl B. Shaeffer, tco'S/,Ari" rAt( f�� SHAEFFER LTD., By: Hurnac Management, Inc., General Partner Harold R. Shaeffer; President GRANTEE: Enc as (USA) Inc. Rielsrrto U. Cal egosAttorney in Fact STATE OF COLORADO } CITY AND COUNTY OF DENVER ) This instrument was acknowledged Gal ;egos as Attorney in Fact of Encana Oil before me on this 9 Ydayof OC ObeY , 2010, by Ricardo n & Gas (USA) Inc., on beef of said corporation. eikotnu Notary II#ib{ic in and 'Ir r said State and County Residing at : 'hot s It.F►-rek+'.tt• oror.► Le tat Iteccption11. 7433,51, fffz751I010 11 _S6 29 MI Aran Allzarico of 7 Q e fee:$41 Ala 000 iee70.u0 CANFIELD COUNTY ca f� H . z Q4 STATE OF Colo g L �' #0,. ° ei/e '` COUNTY OF G riehi ) '1.�y�QtQt# ,'"�lilRlt fug Fhis instrument was acknovvkdged berate; me on this atday of October MO, by 1 [amid D. Shaeffer n timidoli_oLSbegirgat , RgnF kfiw Maaagcntent Inc.. and as Paesilknt of NE byl4E LLL?,, Gencrall_ agu Hrema A�fan� 1 Napery Public in and for said State and County Re%iating ar : MY COMMISSION EXPIRES: MINIONIZEC rrj7»fi 11' WHOM l'TM71 a. NIMEZ= ;II w !' I LI irdlliiint Mlniffifig' th 111 itecept lent!: 7938 1•145/ 2810 1 1 , 6af 39 tlfSl J1a r Rlbeir Soo 4 or 7 Ria Far -..yr t .OQ Cot: Fre 0 OO OCRFJLU 1:04,41-r co E XIII RIT A PAGE 1 OF 4 1 to 1 Leare�.r. aluZi. rae ULP um* Ra1 MOREL Ode MP Miler AL 11rn7rzni, lei.10.U!' + ' W 5 fOOP 0 '� e rrr »AI r I Sf77a'd3'tiL 1110 op Lip sr 041/104 MEW glSfll'Irl7i f 1 SECTION — LEGEND ai*JC NMO &r ICT C+OWIN PAIL iftarraracpasupic AOC eesa er sow 47. eaa V payia itesia EnCana Oil & Gas (USA) Inc. A9 SHOW 0 12/1© COM* •t. sa4. coatroom HUNTER MESA TO PUM8A PIPELINE ACROSS SHAEFFER PROPER/1T. SEtiici r7 F1S rrglw CARN1EtO CONfrrir. r] ORO* ti nt 0°6'7 8 24 10 foam moat W-04-51 111a41o1 arw►srula .siOCuti s Mt WIN SMUT. CloPPOSTIK WY IMO EXHIBIT A SHEET 1 of 2 ill nr 't rflliie ewHsi Rtc+apt iarffx: 793958 )r,1:517310 t 1 .58 IIs tiff 1.an 011ttortcu w w' 7 Roc CN:Si (.cro bac Fs.'a en WAY CCUNTY CO EXHIBIT A RACE 2 OF 4 LEGAL OCSCRIP DON A fA goarna, y110c.41fif eh, Msr?A/WrAfand NWfN NEM! riiSacalm r7 17S. ROW Br7'!PAL, +G*4 iif C+Okaj: Caws*, bM cortort700 our sokf r-stway Wino ohorr petkut*dssctibed as tams: Ca►nrs otti+p att Norlhassi casrnw atsoft Secdan 12 and rrau>rig below U776 -IOW 1307:43 kw aim; Ow Kurds Ens 4f.a*1 Seam m slap Northeast Comer of said 14W1,14 NE1,147 mono' 501' 16.1 PE a I.IM *et ola+rg rrra Fear or1a Iwo sof tt rhe POINrcF 9CCW111W1 Zama SIr251121y, 124.13 Set 1team 387'2724W 40246 dloot athrn00 Se7'301341, 42183 Asst Mow* S8T1OV7 i. 39&+91 ncre SePVISMV, E55-01 tall' Imre $ 4527'11; 7.9159 4,4 a selr eM3rir, swam lost Pam* Sa6.37"491v: 30818 Abet Room N46 U9 I! $$ 63 feat b ma PONT OF ENCINO al ssia csomm ifael, s%d adt,f Amie calks, Nowt ogre disk/ SecnlO+r 12. N8Y03741E.. mos Fa& tom Mr Nair:~ comer thereof Sad caltawdl'nr being 378292 kat kf 1anga,. 6ASIS OF BEARING no balsa blaring forpli9 swrvey lr 5872610- Z014.4113 47'2eio-2'614 q iW Intiveao Vend mart unroftpr at 818 fieri maer Game end Ole ARarH Ons-Ovarter ComorefS4cean 12. 77S. RUM. RIGHT -CIF -WAY tENOTHS PROPERTY OWN:F.R ' 1E 1"1ON fr.,E7 7IK. Siu1EFFEFe Sob Il. Trs R93W 37O la 37/221 Tial 171/4.87 CER TWIG TE OF SUR VCVO!? R reed Taggart t 1 Prude; Colored© Formby cor1f y that th[9 frfap was mad. from notes taken dwirig an actual survey Heade by me or under my dk cgpn ksr EnC.na 011 d Gas (USA) Ina mod that the results of which are correctly Mawr, Merlon, EriCana O! & Gas (USA) Inc. sarlerin HUNTER MESA 10 PUMA P(PEUNE ACROSS SHAEFFER PROPER IT. SCOTTO f2. I75. R13W, C MEL.n COM TY. G %.4RADO /Celt' AS 9101101 r 10/12/10 4 Qum( in Sww "X aryl rap 8(24/10 Ip04a(ct Nmee a 10-04-51 9a9n?o wwswto+ sumcw+a .s2aa&res 9411 MM S 1. CvNesrew. xr Ei*30 (307) 718-41;8 EXHIBIT A SHEJ 2 2 Qf 2 Nil RecepIlona: 7935 r 1 IOSIT61161 1 t 59:619 F!K ,than inIber ie0 6 of 7 Ret Fcs,$41 CO Dor Fea:17 QLJ 401AFFELII cams' co EXHIBIT A PAGE 3 OF 4 LEGEND 4' PijPUC LAND ctiR : a ANGLE PONT P.0.9, Post CIF FAMivAANC PVC POINT OF ENOaMC Owner: fJENZEL LANE? LLLP 1 pdor�Efe $rrt. +s�$ i 4.19'5' t t 5 _ S97 2�5'tClrW, � - P.O.B. No. 1 Cert ferline of Pipeline High f -- of Voy 1 ar '1 4I is NIN1/4 NE1/4 4, 1'------ SECflON 12 - NE1/4 NET/4 Owner: NE BY NE LLLF (/1 0 V16 . SecTFon w 1.4 to LINE TABLE LINE GEARING LENCT1-1 L i - 586-01 'oeW, 172.98 ._ _ [- - sa7.4 3'34 "W 1 430.78 L3 I'M :'�`15"W 10.11° L4 N89U6'?5"W 89.89 L5 5872..1.0"W 140.27 L5A 587'29'02•"W 366.60 L 15 , NO I '40.013- W ` 46. 73 FAST t/4 CORNER SEC. tx t LORA EnCana Oil & Gas (USA) Inc. WAIN ICY; sum cas>rt+wrnort; HUNTER MESA TO PUUUA PIPELINE AatOSS PIE 9Y t<1.1.1P PROPERTY, SECTIOR 13, 1 S. k5131'� GARFIELU COUNTY, DORADO GATE d aitt 10 "ASATO4 SuYPING . A7lx WI V#a MEV. (WrtStart we 12030 4aan rt -4446 12 10 PAtiecr mihvailt 10-04-51 EXHIBIT A 9 PEET 1 of 2 WillitliMOIXIOLIti II RI Recomt iorra ° 1939S3 ttf J2y113 11 $8.09 R!i, ler+ Jiberice 7 13r i R. ree-1.11.0(7 S.f r.+ 0.0O Lii(�#nEL7 rgirtlr co EXHIBIT A PAGE 4 OF 4 LEGAL DESCRIPTION ApipeN e draht-aciatylaatiladNr!wNC114+I 1H al&ac4e►' 12 T75, RWW. 6TH PM. tl rfMrt1 Cowley; CoVnide. Myo cJrtterfine el'side tigheo(-woy being mom per celodyekeoreree ■• 1foilowse Cemnlresli*g el Ow?rloreleasf corner aimed Salaam 12 e mooing ahanre $82`4614-W. 10741 ANN anO* Pe rte OF 8E0114W1Na Ate bete boarinv for this survey tiehg 7'2W 1O' W. 21:485 teal behr an round reonanerese r erne Worlheest G?rrer end Res Meth One-Cluerter Corner ner at Secskto 14 thrwce 58krt1mew. JJ2ea Jwt; Mange $87443-34-W, 4X.78 feat rhenca 14119176-1571, UL 11 hit le a poke 1a be blowner Feint A memo ooa6Iu[ng titci E'39'f5'W, +959 feat; thanes SB7 nwrw.. 140.27 reek aortas SiE 2efl?W, SABO rale SO the POiWT OF ENDING eaf itis porton or wed ci sere polo( Woo an the West One Of gild HJE1/4 ?JE114. S01't119" E, 41.19 hat burg the Northwest maw thereof. Arca, BEGEMNG at said Faax A'rand Funolog thence Nor"atrOe-W. 40.73 telt o Ata POINT OF&WING derEs parkin of said ornlerJine, sale palm lykist on Uwe Ab llAM Of MktStaan J2. Sd7'2f tirW, 7f0_97 brae Truro mo Noreioaar corner &erect Said centeens being 3257.35 Me/ Fn k 1q h. BASIS OF BEARING The baso &wog tsar rh4c surrey Jas $1171fQ W. 2614054&1 beeeein l.wd maitensers et The Northeast Corner sod the North One-Ovetter CornerafSedan #Z 175. PAW RIGHT-OF-WAY LENGTHS PROPER rvmoan SECT ON EY TOTAL NE t!Y tl t.1.1F. 1 Srrt it T7S Ra3W J j37.35 1251.^3ti rorty 1 23736 CERTIFICATE OF SURVEYOR 1 red raped eat Finite. Colwedo hereby certJfy that this 'nee was made *am notes taken during an grill aurvoir rr1atta by roe or undo( my &radio for EnCana 13 Gaal (USA) Jnc. and That she results a! which are correctly shown hereon. tN EnCana Oil & Gas (USA) Inc. 1 OR ANN BY: SIN atstat+t> ncet: HUN TER MESA TO PUSIOA PCPELINE ACROSS NE BY 1YE LLLP PROPERTY, SECTION 17, I75. R93W, GARFIELD 001 ,1,47Y. CdtORAOO cum esteems 10%12/10 I'Rater WARM IO -04-51 &SATO$ suiNe #ML 44.NciaArts. la imp SWAT, EVAN:tar. mr (301) 71Ee-4545 EXHIBIT A ST [CET 2 of 2 II w%v211111MIEIrl111 Reception#: 792e26 11140/261/0 10:22:56 AIR Jean AAba®'ica $ of 1 Roo F44:511.00 Dec Fss:D.00 GARFIELD GQurr9Y Cm STAT OFACTRORI Y NE by NE (Shaeffer) Ref: Hunter Mesa to Pumba Formant to CAS. #38-30.172. The undessigpedexeciees shit wi of Auilsosityosa helot( at NE BY NE I..l1?,I a ility y t an may ober that slue is &vidred, capable or holefitg tat to real prsltlpetty (tiae'i mluty")amd sates s as The sane es NE BY NE 111.12 and is formed Mkt the tows aft#regaga Colorado. the starling address for the Entity is 5957 Rd 3L9, Rifle. CO gI654. The lsasnemilks-position eigperson aed toenlrcuic instratnetts ca vcyimr, oinc cries, orothensmaeaffecting title to seal praisexSs as behalf site Entity is Rudd B. Shaefferan Resided. The lis sita�'icsas apse dee authority of the person unwed atausc, or bolting the pukka described above to bind the qty arc as farrow i111�1N� (ifiio limitations, inert "Notre) Other mux coocestingtc raosserua skids iiac qty deals with say iseterest m real pRPpdY arc Wive pita ember, Leave this maims Wank) ExECITTEDthis Pf .dayofOff.a.I& Sigintaure: Nametbt 4f B. Ms Pre ta 'indent ,•yet $�rs-r.`,r,t�-���' {' STA'[E• OE COLORADO COUNTY OF .0 )S8 - The Carebping lashmeleat was a tvkdgcd baatit Derr. this VOthy afticeobor, SIB by Harrold B. Shaffer, on behalf of NE BY NE LIMP., at Iitoi tcct amity carparsti a. Whereas true hand sed arida seat My teternissirsa espiecj DAMaELtE SCOTT HOU IV pm= seem r ;;c4.1), • troy Commission EvireS MUM M'M Kooky thiblik MI .r ILMI Receptionll : 793624 t1103f2010 1q-72:56 RM Jean Rtber Lao Y t0 1 of 1 Rei Fe. $11 .CC Doo gest 000 FARF l(] D Gi?:.n:' STATEMENT OF AUTHORITY VarALESI ro CRSS. 418-30-172, tyre undersigned csemtes dais Statenwirt of Autikitity cr,,, b ehaif of IIDMAC MANAGEMENT, MC, a &M d Ii<airr7ity wsa y, as cagily cafree dxan an miiwithnl, cipabk of holding rifle to teal property ft re "Esq"`!, and states as Wens - The name oldie Emily is NIiMAC MA?+iA ',MENT INC:_ and is formal under the lams of the Stale of Nevada. The mailing address Garr the Fxs ly 99.il Rd 3 ICJ. Rifle, CO 6 650 The ram iandior position of iSie pawn aatlant 'zed 'ieliecole instruments conveying, encumbering. or oda:raise drooling title to real mope t1y a gra behalf of the Entity is Harold R. Shaeffer, a5 General gatres r.. The [imitations went talc g of the. person oarriod above or holding the position de xibed above to bird the Entity areas folly WIC (dmf limitations,, insert "'I Nerve) after autttcrs awaiting the manner irr which the Emily deals with any interest in rel rinViertYare: _ (Woo Deuce matter, lease this recline bl. la) EX Et:tit- Dthis. i4!`dry atfOct,20t0. Noma Harold l Slur rt r ''7 - STATE OF COLORADO y C(*JN EY OF DENVER The fix-egoistg instrtsrr ent was arc&nvwfroJged ladw me this 1e day of October, 2010 by lianaki F. Shaeffer,on behalf of }:e1IAC MANAGEMENT, [3 f' , a limned F I ity corporation `IVitrress my Mod and official seal My cu nntissiea rat 1L DANIE LLE SCOTT NQTAAV PUBLIC • STATE 'A COLORADO ro.�o,� htyCenraissionEapr+esO&t!J2Gt2 Ufitt Nratarty Polifie KRK (Katherine Rogers) ■� riroam MLNit KRI ; YL -1 II Gll ,TY Reagptlon#: 79'3823 t t r�6r2gta 1c :22. s5 a*a .tuwr, Filhdrkc:o of 1 Rau Fee:ftr.ctts Doc Fre.0.00 CRWEE13 COLIC: F CO STATIST OF AVTITO /0TV Plirsuant to mel. *3S - 30-I f„ oidersigitod exnnites this Staten/est of Authority on bcttafot 9CRK LL LP, a finsise4lia *E y rerret:ltrrwy, ass entity anter than ass ittftt , capable of bolding tide to mai prupa1y (dtc "Faslity' p, armsl stems as la e The mane of toe Entity is KKK LL LP. and is formed wax Ow laws of Ode S7:ate ovf' Com. The trnnaikrig add for ibc Fxlfey is 6606 Half Moon Bay Dr, Windwir, CO 80550_ The name rotifer pet of t pen authswired to trecate its came caunobeing, or otherwise alfee ing fide to oa,1 property on behalf of tlx: t vents• is Kaiaive 1=. Regotrs-, as Gavial pother. The l� upon the antilatsky n(tfc pCISLIR named above or liolding the position a/; i bel abort IO bind the Entity a a €s Seim NONE (if rei lrtrairtati,af noised 74one q Other matters comas* dr warner in which the Entity ikals with any irtencsa in real Via: {f se other matter, leave this section b &) EXECUTED air ofOatotrex,20f0. �. tirsrfL4 % �% Katherine F. Rogers Ileac Gement Pima STATE 1W COLORADO (1( IY OF WELD Mc lumping instrument was aegunowkdged lrcforc Inc th sWilay of October, 201+0 by Krell/nine F. !Dens, on hchalfa KRX LLLP., a finites! liability Witness my lotted and official %rat My Misdtrris, ,a : ipj Notary Milk DANIELLE LE 1 T NOTARY PUBLIC STATE OF COLORADO 1 tliy iav:. Frg*e# W'I t SURFACE CSE AGREEMENT ENT Jr THIS SURFACE USE AG1t EMENT ( "Agreement') is dated the j day of ate•Mety 2005, between i3.1.M.. Ltd_, a Colorado limited parrnet-shirr, K.R K. LLLP, a Colorado bailed liability limrtad partnership, Rcbjak LLLP, a Colorado limited liabtlrty harmed partnership; Shaeffer Family Trust, a Colorado trust; and Shaeffer Ltd., a Colorado limited partnership (collectively "Owner"), whose collectiveaddress is 5957 County .Road 319, Rifle, Colorado 81650, and En''ana Oil & Gas (USA) Inc., whose address is 370 17th Street, Slate i 700, Denver, Colorado 80202 C Operator"). RECITALS A Owns- owns the surface of the p operty set forth in the attached Exhibit A (the B Operator is tete owner/operator of the working interest in Oil and Gas Lease(s) (the "Lease") panting Operator certain rights to use the Property. C Operator's Oil and Gas Lease(s) ("Lease's providescertain limas and requirements far surface tis by Operator. 11 Owner and Operator wish to enter into an agreement that sets forth compensation matters related to the operations that shall In conducted on the Property - E. Pursuant to The Lease, Operator proposes to drill multiple wells on the above-described surface lands m multiple well pads. TERMS THEREFORE, to consideration.af the mutual eavenants provided in this Agreement, Operator's agreement to pay the rentals and tlarrages dssrribed in this Agreement and other good a valuable ainsidcrat1ca, the pasties agree as follows 1 WELLS. 1 L Definitions .l [ "Wel]" shall mean a well and the accompanying wellbore (either vertically or directionally drilled from a Well Pad) for the production o r oil and gas quid all asst sated easing and wellhead equipment LI .2 "Well Pad" shall tram a physical drillsite and production location that may contain one or rn a Wells. A Well Pad shall include, but not be ttrttrttn l to_ tinwhoes, gas pipelines, pumps, heater treaters, separators, tank battens, meter houses, resvve pts, dr -filing pits, and other fhctlit 1 i irxessary or convenient for testing, completing or producing o& or g s from the Wells 1.1. Within len (10) days of Owners receipt of notice of Operator's lineation to construct. as Well Pad on the Property, Owner shall consult with Operator to the location of slice Well Pad and Oar shall reasonably try to acsnmmodate Owner's requests and concerns %vil r! locating the Well Pad_ Withal seven (7) days following tite initial consultation, Owner shall either (a) de1mre to Operator written consent for the proposed Well Pad or (b) prise a reasonably equivalent alternative location for such Well Pad. ]f Operator doe; not accept Owner's altensative location, Operator shall pmpose another location and the proems described in Ns subsection 11 shall start over again. Owner's failure to respond ear propose a reasonably € quivalec t alternative within the seven (1) day period described above shall be deemed as Owner's •consent to Operator's proposed lecithin for the prolapsed 'Well Pad. 13 All Well Pads, together withany nuts aid. Ells, shall u.ve the imam= area. nary. Operator shall submit plans for Well Pads for review by Owner prior to construction, which shall inekirie a sketched peen for the Well Pad. The disturbed. area for a sir le Well Pad shall not exceed two and one-half (2.5) acres For multi -well Well pais, the disturbed anea shall zxnt exceed the toad alive (5) acres. 1.4_ -Well Pads sell bn kept safe and as good order, and shall at ;ill times be kept free from weeds, litter, and dam. 1.5. Operator shall utilize a ie c mnc fiend monitor devices on all Wells 16. Operator shalt maintain all equipment and facilities on all Well Park art good appearance and 'repair at all times pnur to final reclamation lillingilliandripapinmosillail 17 All production water not lranspoated through a pzpetine and produced condensate shall be collected an uatsde-holding tanks ioeatecl within the boundaries of the Well Pad, and shalt be pn poly removed. The surface shat] be honied around such tanks to control spank 1$ The initial slope of any Well Pad to any ditch, road, fence, or roomer unprovesnen t. $:iail 7e. not PritatFr than /- iktc11 Parte ehail not be rn.wrn4r1+^4 oa thaw greater avail t arty percent (30%). All Well Pads shall have proper drainage mtrctun s 1 9. ThEs . reem nt does riot allow the loswion yr -mstaila€tun or any compressor station on the Property Any issues concerning compressor stations must he addressed an a separate agresement(s) 1 tt3. Alt Well Pads shall be "sheep lulls" famed ail Owner's written rcquo , 1 11 "Aboveground" dry -hole markers shall not he installed unless permitted in writ rag by Owner or as may be required by any applicable xtate or federal regulation 1.12 Equipment or facilities that are lonc,er needed for operations on the .Property shall be immediately removed from the Property Operator shall not store -material or equipment that is not in use on a Well Pad or anywhere else on the Properly 3.13. Well Pads shall be graveled in alt areas where vehicle traffic is pressent. If for any reason a Well Pact becomes witted, dug up, or unsightly, Operator must return such Well Pad to a' €l antaincd appearance Operator shall rectify sinkholes, mesion areas, poor grass stands, and any other condition caused by the 'Operator that renders a Well Pad unattractive t.14. Operator spall comply with all applicable governmental regulations and statutes white conducting its operations, Upon notice from Owner, Operator sball immediately rectify any spills, excessive odors, noise, and other nuisances to tic standard required by applicable. regulations. 1.15_ Reserve or dulling pits used on the P, operty shall be plastic fined during drilling and completion operations, unless otherwise agreed by iffier m writing. Such lining material shall be at least sixteen (U) millimeter tbicknms All lining (materials must be removed before reclamation of a pa area. Excavated anterial shall be replaoed within ninety (9O) days of finalization of completion operations. 1.76. Consideration fur Wells and Welt Pads shall be paurl in accordance with Section 4. ? PIPELINE RIGHTS -Or --WAY. Owner gets tai Operator a non-excluswe pipeline meat-o€way over, through, upon, under and across the Property with ingress and egress to construct, lay, erect, maintain, inspect, operate, or alter one or moire pipelines, which also specifically includes, valves, regulators, meters, and fittings ("Pipeline Right -of -Way"). Owner. and Operator shall execute aKiat t -of may Agreement an the Ilona of the attached Ethibit D to memorialize the locations of the Pipeline Rights -of -Way granted herein_ Furthermore, it is mutually imdcrstood and agreed. that Z.I._ Owner has selected and approved the location of the Pipeline R=ghts-o€ Way dtscribed in Exhibit 13 and shown on the attached Exhibit O. In order to minimize surface ilisturbarioe, Operator shall use reasonable efforts to install mulnpte pipelines within the same Pipeline Right -of -Way 2 2. Except as set forth in subsection 2.3, Operator agrees that the Pipeline Rights-ol- Wa y set forth ni Exhibits B and C shall constitute Operator's orgy pipeline routes on or across time Property, and Operatoracknowledgrs that such tome(s) providesufficient through and across the Property to accommodate Operator's present and future needs related to transporting gas or water. 3 2.3 Owncr agrees to went Operatot additional Pipeline Rights -of -Ways as may be necessary to gather gas or hater produced from .yells located on the Property which cannot be gathered and transported through tiae pipeline(s) located in the Pipeline Rights -of -Way described in Exhibits 8 and C. All pipeltnei shill be installed adjacent and parallel to ext4ting or new access marts unless otherwise a_i;.reed to by Owner in wnttng. be: 24 Any pipeline ar flow -hoe installed outside a permanent production facility shah (a) Buried al a minimum depth of forty-two (42) inches, (b) Eastalied so a may be destexted using a commonly n,raiiahle metas cletec.:tur, and (c) Marked every IOW feet along tis length with above -ground signs prominently displaying the pipeline owner's name and a telephone number-. at which Operator may be alerted of digging operations and emergencies. 2.5 Owner resery the right to cross or parallel Operator's pipeline with any tale tlxaE Anew, not obstruct or endanger Operator's ccarkriirTent USC them of. 2 b Owner shah be informed by Operator in writing of any pipeline no longer required by Operator for transporting or gathering gas or water from the I mperty At Owner's written request, Operator shall purge such ptpeltn. (s) with inert gas and assign it tt• Owner in a recordable insinuated, am! thereafter Operator shall be relieved of any further icabiltt}• relining to such pipeline after the date of its conveyance to Owe et. 2.7. Operator, .its agents, designees, assignees and successors -in -inter :st shall, in contiecaon with the well operations and use of the Pipeline Runts -of -Way, comply with all applicable federal, state and local taws, rules anti regulations applicable to well operations and tt5: of the Pipeline Rig]irs-o -Way, incdtiding, for example, the (Daimon law and all nthe+r laws designed to protect the ettvirratoriestt, public health or welfare. 22. Promptly after ronstntcttsao of any pipeline within the Pipeline Right-of-way, Operator shall restore any affected area to its pre -construction condition, and re -vegetate ail such aamas with site -appropriate native gasses. 2 9 Operator's use of the l''tpehrie Rights -of -Way shall to lsiu ted iiia"rtiiirg to the terms of this Agreement, aad the doctrine of "normal evolution of use" shall not apply to Operator's iese of the Pipeline rights -of -Way. 2 2 0. Coazsidcration for Pipeline Rights -of -Way shall be paid in accordance with Section 4. :. ROADS 3.11 Existing Roads Owner grants to Operator a non-exclusive access right -o3 -way auras the Property along the existing roads that are mart and :daentefed on the attached Exhibit C (`Road Right -of -Way') for ingress and egress to Operator operated Wells and Well Pads located on the Property The Road. Right-ofWay shall the approximately thirty (30) feet in width, being fifteen (15) feet on each side of the centerline of the existing toads. w mer 3 2 New Roads. Owner grants to Operator a zion-exciz the access right -of way axions the Pluprtty to construes new mads Such . new rtemay onlybe cntnstructexi after receipt of Owner's consent following notice by Operator of the proposed route The new roads shall comply with the width restriction set forth in subsection 3A and Ann be catts;ructed to the wire standards as BLM RESOURCE ROADS, as described m "Surface Operating Standards for Oil and Gas Exploration and Development," 3rd Union, Prepared by ELivfiPS Roclly Mountain Regional Coordinating Committee `ibc new roads shall be considered a part ofte Roa€f Raght- nfiray Any land adjacent to a newly constructed or exesttng road that is disturbed by Operator shall be promptly reseeded and restored, in accordance with Section 10, upon completion of the conslrudion activities 3.3. Operator shall not use the Road Right -of -Way to access Welts or Well Pads loctrted off the Property without Owner's express consent. 3.4. meet to Owtter''s right to use the Road Right -of -Way at any time for any purpose, the Road Right -of -Way is solely for use by Operator's employees and contractors for the sole purpose of exploration, development wnd production ur siattual gas and assocw.ted hydrocarbons on the Property and other lauds accessed by the Road Right -o# -Way. This Agreement in no way conveys rights of access to individuals t)r parties for any other purpose whatsoever Hunting, sightseeing, horseback nding, use of recre Ronal vehachn and other such activities are prahib tel 3.5- Ail roads used by Opezator shall at all tunes he properly graded, drained, gaveled, and mauiratned by Operator from commencement of operations through haat reclamation lamation Fuer, Operator shall keep all roads in good order, at .all tunes free from weeds, litter, and debris. 3 6. As soon as practicable following completion of construction of the roads and pipelines, Operator shall, at its sole expense, survey the actual location of the completed roads the " as.built survey"), a copy of which shalt be provided tv Owner. 5 3.8. Culverts at ditch and drainage crossings and barrow pits shall be installed when requested by Owner where mads moss dares or drainages, shall be stud to prevent obstruction to the free flow of the volumes of water being earned (including flood stages), and shall be • cleaned and maintained b y Operator 3.10 Any fence cat, dame , or taken clown shall be restored to its original condition or better as soon as practical. Operator shall take necessary ttleasvr s to keep livestock front leaving the Property while a fence is bcuig restored. Any fence to be cut will be 1i -braced and dead -manned poor to being cur. 3.11. Owner shall have the ng& to relocate roads to accommodate its uses of the Property, provided that such road relocation does not impose an undue burden on Operator. Relocated roads shall be of similar utility, and all costs associated with such relocation, orbe¢- rharl routine vnairnterssance, shall be at Owner's expense. 7 O er?Tnr ewh,nfl 1.wa ettg rzble ince ods to 1iaj t *firs; ii*uu 14 Ods. Mi lines, and , rv... wa , Well Pads, excluding hard surfacing_ Magnesium rhlonde shalt be applied when requested in mulling by the Owner, up to a maximum of three (3) trines per year. 3 13 Consideration for marls shall be paid to accordance with Section 4 6 oti 4 Cf MPENSATIO3N 4 1 Well Pads Operator shall pay Owner for surface damages resulting from the conatructwan, u at14C3111111Cc Utd opcxatyon of Well Pads and Wells on the Property according Ro the formula in this subsection 4..1.. 41 L. Brie Cast The base cast shall consist of -the components des ;raped in this subsection 4 1 1 (collectively, the "Base Cost"). (a) (b) 7 1 1i (d) 43. The payments described in this Section 4 shall constitute payment cn .tel by Operator and its affiliates for all normal damages including, but not limited to, damages to growing crops associated with the drilling, construction, completion, recomplc(ton, reworking, re-entry, production, operation and maintenance of the Well Pads. Normal damage .include., but are not limited to, reasonable and customary ingrcaa, ems, rights-of-way, s47110011oi of all access rams, preparation and use of Well Pads, preparation and use of reserve Wits, and construction, installation anti maintenance of production equipment and facilities such as flovahness, gas pipelines, separators, tank batteries amid other equipment or facilities necessary or convenient for the pn' duction, irarsspartalion and sale of oil and/or gas therefrom. LIVESTOCK_ 5 2. Retocatian of Livestock Owner shall notify Operator seventy-two (72) hours tri advance when Owner desires to exclusive]y use any Read Rijn -of -Way from fax—to-time for periods of up to five (5) biers tri relocate hvestadic Operator shall make rmsonable aunts to 9 accommodate Owner's operations during such use periods, subject to Operator's need to use the Road Re it -of --Way for emergency or Well ciititro1 equipment Operator Shall not interfere Willi on impair Owner's access to its -pastures at any times Operator will provide a route of actxzs aroma! any Well Pad that inhibits the flow of livestock so the livestock will not have to cross the pad during doffing operations. 6 iMPROVEM Et4TS. 6. Maintenance. All of Owner's currcnttly existing access roads, fences, cattle guards, and gates impacted by Operator's operations shalt be maintained by Operator in as good =minion as existed at the time of the execution or this Agree Tient_ Owner ill give Operator written notice ordegadation or damage to such .Improvements caused by Operator's operations Wtthin ce?UP ! (1) obeys ref !rater N (si rhjer1 Tri isiriet noot ivr :ai iPr). fire•ratnr 5.414 rFrair rrr r i��rc the personal property to its previous condition or better 6 2 Damage if, by reason of Operator's operations, there is damage to any personal property of Owner or Owner's surface lessees no the Property, nr there is damage to the surface of the Property caused by the itegiigence of Operator- or any unreasonable use of the Property by Operator that is not associated with resonable and normal drillings. completion, re -completion, reworking, reentry, production, niainteirame acrd operation of a Well, such as, by way of exacip]e and not linutatton, lama=me to str;ictures, fences, gates, culverts and ditches, such damage shalt be repaired or replaced by Opaator t iti rn seven (7) days of written notice:: (subject to delays caused by inclement weather), or Operator sh i l promptly pay Oversee' for such damage_ 6.3 Fatlrburse:trnutt if Operator facts to repair Or restore the personal property to its picvrnus condition or better as piuvidcd in subsections 6.1 and 6.2, within a reasonable time after notice from Owner riot to oxece d seven (7) days, subject to delays cased by inclement we ther), and Owner performs such repairs yr restoration, Operator shall reimburse Owner For all costs associated with such repairs or restoration within fifteen (15) days of receipt of an itemized rnvoacc fur such work. 7 PROTECTION OF WATER RESOURCES 7.1. This Agreement does not give Operator any right to use any of Owner's water OT water rights, except as otherwise expressly set forth in tins Agreement 7.2_ Operator shall protect all water sources and conveyance structures, including but not Waited to the natural flow of creeks, wells, and ditches, from all operational activities, and shall immediately remedy any diversion, curtailment, or blockage of water flows or contamination of water sources located on the Property. 7.3. Operator shall take all neeessmy steps required by local, Attie and federal regulations to prevent its operations front polluting the waters of resCriot s; spnngs, ditches; streams, aquifers, or water wells located on the Property 7.7 7. 7.9. WEED CONTROL. motor shall be responsible for controilang all mucus weeds on any Well Pad, Road Right -of -Way and Pipeline Right -of -Way.. Operator .shall also be iespot sible for preventing such noxious weeds from spreading to Property adjaczat to any of these areas. B.I. Adjacent Areas. In the event such noxious weeds spread to adjacent areas of tete Property, Operator shall be responsible for control nog the motions weeds on those Ands as well, provided that such adjacent arras of the Property were free of such noxious weds pnor to construction of the Wel Pad, Road Right -of -Way or Pipeline light -of -Way, u The .ase may he If the adjacent areas of the Property were not gree of such noxious was prior to such con tnadi n„ Operators responsibility shall be limited to reasonable concrvl of such noxious weeds only on the lands that comprise the Well Pads, Road Right -of -Way or PtpclIne Right-of- Way. sgt-of $.2_ Weed Control. If Operator locates, or Owner notifies hater in antrng of the. to ation of, noxious weeds on any antes subject to this Section B, Operator shall tusplcrnent control procedures before the noxious weeds go to seed 8 3 Timet of R esponsibt It ter. Operator's recponsihila ty for noxious weed control sande this Section 8 shall he anon and shall continue even after a Reclamation Event, until such time as Owner- provides Operator with a written release of Operator's further Aligatton to l} moral noxious weeds rot the Property, or five (5) years from the Reclamation Event, whichever exxurs first 9. EROSION CONTROL Operator shall be responsible fur c nitrutl=lig all crostnn of -soils & the Well Pads, Road Rights -of -Way and Pipehne Rights -of -Way, and on adjacent Property, wbrill is caauscd by the activities of Operator or its agents Such erasion control shall include, without limitation, re -contouring, reseeding and re-+regexatmg such lands aid r- stonng any ,cicrvorts or waterways to their previous quality and capacity Operator's resprtosibility for erton control pursuant to tins Section 9 shall be ongoing and shall continue even after termination of Operator's use of the Well Pad, Road Right -of -Way, and Pipeline Right -of -Way, until such tirite as Owner provides Operator with a. written release of Operator's further obligation to control erosion on ibe Property, or five (5) yes from the Reclamation Event, whichever r occurs first 1 t . RECLAMATION. Following Operator's (a) t p thou of the drilling and completion activities at a particular Well Pad or any portion thereof not needed for operation of existing or planned Well(s), (b) permanent plugging of all Wells on a Well Pad, or (c) abandonment of all or portions of a Pipeline Right -of -Way or Road Right -of -Way constricted by Operator and Which Owner does not thereafter ,acquire or wish tv uli1zie us provided in the;. Agreement (individually "Reclamation Event(s)"), the portions of the Property which have been disturbed by Operator's Well Pad, Pipeline Right-nf Way err Road Right -of -Way, and that are no longer necessary Sr Operator's operations, shaft be re-contoured, re -vegetate., reseeded and restored as closely as practicable to their condition pnor to disturbance by Operator ("Reclammtion"). all at Operator's sole cost, risk and expense. 10.1. India] Reclamation. J0.1 1. Operator shall submit copies to Owner of each approved Application for Pinot-to-Dnll (Form 2). including any conditions of approval for all Wells on the Property, prior to commencement of operations; with heavy equipment 10.1 ny usable timber, fence pus , firewood shall be stockpiled at mutually agreed locations. All slash shall be incorporated iota fill at a mrnnntnn depth of four (4) feet from the surface, or removed 13 10.1.3 For each Reclainatic ri event, ai} disturbed areas shall be re-contoured by placing fill material back into cut areas to approximate ongiaial contours Slopes shall be re-contoured to minimize areas that exceed a 3.1 slope Any area c tceetling the 3 t slop: (T terra ur high - walls shall be rcdlaeu-ir d using customary stabilization and erosion prevention methods_ Areas -re- contoured shall be reseeded with the native grasses and vegetation that existed pricer to disturbance and which meet the criteria for final reebniation under subsection 10 2 10.1.4_ Additional disturbance of native or previously reclaimed areas shall be rilnrtmmtzeii if any subsequent disturbance of surface area is undertaken by Operatii at any time, the same reclamation and revegetetion obligations s�tll a ppiy- la1..5_ Any re -vegetation required under this subsection 10.1 -shall imr sxdiatc1y follow completion of the last Well and installation of equipment on the Well Pad, 10.2 Final Reclamation. Operator shall use reasonable efforts to return the surface of al) disturbed areas to its original topography and vegetation, and in accordance with the rules and ie;ulaiioiis of the Colorado Gil and Gas Coosa-wit/on Csimnussron ("COGCC")_ No trash, litter and.+or clebns may he buried or burned for any reason. Upon final termination of Operator's operations, Owner may request in wztting that culverts and fencing to be left in place, in Minch case such improvements shall thereafter belong to Owner_ Operator shall noir lairs any roads that Owner request, in Ming, be leftin place. Operator shall Make a grad faith effort to commence Reclamation witfun two (2) months (subject to inclement weedier) of ear e Reclamation Event and shall complete the Reclamation within two p) years of -each Reclamation Eve it Operator's Rechn a ion responsibility shall be ongoing and shall continue even after termination of dies Agreement, until Owner provides Operator with a written recast of the Reclamation responsibility, or five (5) years from the Reclamation Event, whichever moms first. 10 3 Reclamation by Owner. Notwithstanding any other provisions of this Section 10, gt env tsmP fnlInwinv Rpr1rrra u n Pverst Chvne.r may arlyisf: ilneratnr that flairrse, dtirets to take over all or portions of the Property affected by such Reclainatimr Event and maintain and assume reslionsibtlrty for all Reclamation associated with such }ands. If Owner aistinitis responsibility for reclamation, Owner shall provide Operator a written release (lithe Reclamation responsibility under this Agrecinent insofar as it relates to the specdic Reclamation Event, 1l. [MPROVelvIENTS Upon termination of this Agreement, all permanent buildings, fixtures or improventents placed on the Property. not otherwise dispo ed of as provided for in this Agreement, shall become property of Owner No water, timber, rock, dirt, gravel or other mauls or rnrierals (other than hydrocarbons) shall he sold or removed from the premises by Operator or its amts without the pnor wntten permission of Owner. 12 SANITARY .FACILETIES Operator, its employees, oo ntn ctors, sob -contractors, agents, business invites and other visitors shall use self containe,.d sanitary faast.tes while: conducting operations on the Property. 11 DRUGS, ALCOHOL, FIREARMS AND, DOGS. Operator shall not allow the 1,11c, . poss sion, truster, p3 tasc or sine f illegal drums, narcotics, or other unlawful sribtanceiand materials by Operator or st, employee 'contractors, sub -contractors, agents, business inviteeser other visitors while on the Property. The use, possession, transfer, fairchase or sale of alcoholic beverages, firearms .and other weapons upon the Property is expressly prohibited_ No dogs are permitted on the Prouty Operator a res to notify all of its contractors, agents and employees of these =fictions. Any individual who violates this provision may be denied access by Owner. 14 HUNTING AND FISHING. No hunting, trapping or fishing by Operator or its employees, contractors, soh -contractors, agents, business invitees or other visitors is permitted on the Property, end no such nghts are granted by this Agreement. 16 ?JON -EXCLUSIVE USE AND RESERVATIONS. All rights graoied tis this Agreement are limited to the specific grant(s) desenbctl in this Ageernernt. Except as ntay be specifically provided elsewhere in this AgreOnent, this Agreement does not, in any way, convey any water rights or the right to use water Owner reserves to itself and Its successors and assigns all nghts not spectlically &ranted to Operator in this Agetsnent. 15 I 7 INSURANCE. At all times while this Agreement is in effect, and as may be necessary fur any obligations that survive tlus Agrcen-bet * as des ribccl in Section 42, Openitor shall keep its operations rnsuretl, or comply with applicable self-insurance laws and regulations, fur automobile, general liabilhtPand workmen's compensation insurance, as well as for any damages incurred on or to the Property. IS. PAYMENTS. All payments required ander this Agreement shall be in the form a: a check made payable to the entity identified nn Exlubtt A as the owner of the specific parcel of land affected by the Well, Well Pal, Prpe3tnc Rist -o# -Way, Ro&I Right -of -Way, or taunting payments in the event it is difficult to determine the appropriate entity, Operator shall make such payment to Shaeffer Ltd 19 LIENS. Operator shall, at its sole ex3dn5e, keep the Property free and clear of all hens and encumbrances resulting from Operator's and its agents' activities on the Property, and shall indemnify and hold hatnniess Owner from and against any and all liens, claims, demands, costs, and expenses, rnclttding, without larri"ittatjen, reasonable attorney foes and court costs, ui connection with, or ansing out of, any work done, tabor perfumed, or maenads fun-Is/tied. ?t? SUBROGATION OF RIGHTS. (pewter shall have the right to discharge or redeem for Own , in whole or in part, any mortgage, tax or other lain on the Property that could jeopardize Operator's rights cinder this .Agreement, nod thereupon be subrogated to such lien and rights incident thereto. 2.t. WAIVER OF WARRANTY OF TITLE. This Agreement 3s made subject to any and all existing third -party easements, nights -of -way, lieu , agreements, burdens, encumbrances, restrictions, and defects in title affecting the Pmperty. Owner does not m any way -warrant or guaranty title to the Pnnperty. 77. WAIVER OF RIGHTS ID CONDEMN. E- wept as provided rn this Agro rsrerrt; Operator waives any riglits it may have to condemn additional t isult nti, ngt'tts-o way, Wett , cif Wed Pads on or across the Property 23. CNANGES Operator agrees to consult with Owner regarding alt significant ape atroris• involving Operator's use of the Property To the extent reasonably possible, Operator shall notify Owner in advance of any significant change rcgarthng the use of the Property fi orii those plans previously discussed. 16 et/ ?5. NOTICES 25.1. Requirements. Wherever provision is made in this Agreement foi the gtvttig., service, or delivery of any notice, statement, payment, or other instrument, such notice shall be given by (a) personal delivery, or (b) by certified mail addressed to the party entitled to rive the sane .at The address states! In the introductory paragraph; provided, however, tint. each party may change that party's mailing address by giving the other party vrntten notice of cinanje of. such ad hiss m the manner provided in this subsection 25.1. Personal delivery shall be deemed to have been given, served and delivered upon receipt. 25.2 COGCC Notices. Operator shall provide. Owner with a.. copy of aaiy "Change of Operate ' mice filed with the COGCC, and Operator shall provide Own a oopy any notice filed with the COGCC regarding public beulllt, safety, or emergency matters. Operator shall not[' Owner of a spill of E&P waste or any ether substance. 253. construction and Reclamation Notices. Operator shall provide Owner written notice of both the start date and completion date of all construction and reclamation projects contemplated undor this Agreement iticludtng Welts, Well Pads, new roads, load exte rasions, pipelines, pipelirne extensions, temporary pipelines, water wells, water sprint, diversions, resbrti•on, remediation and Te- vl gelaton. 2(i HAZARDOUS MATERIALS INCIDENTS. If requested by Owner, Operator shall provide Owner copies of all forms, notices, plans, legs or other documentation entatae regfarding spills or blow -outs net the Property that are filed with the COGCC, local goverment representative, or any other regulatory agency 27. VARIANCES. A cxapy of anyrequests hy. Operator for +fans ce from surface use or oxiarnarion regialatEaris, not requiting a petitton and notice to Owner, scall be dedtvecwd to Owzier at the same time as &ivery to the COGCC_ 2t. PERMITS, SURVEYS. AND AS-BUILTS. Operator agrees to. provide Owner with "as - both" surveys ofall mads, pipelines Wells, and Well Pads after construction 39 LIABILIITY OF THE PARTIES, 29.1 Indemnity Operator covenants and agrees to fully defend, protect, indcrtntify, and hold iarrnless Owner, its officers, directors, partners., principals, employees and agents (collectively, "Agents"), from and against each and every claim, demand or cause of action and tribiltty, cost aridlor expense (ineLuding but not limited to reasonable Mammy fees and costs incurred to defense of Owner and its Agents), fig- damage or lost, in connceb t thief -,with; which 17 1 may be cnade or asserted by Operator. its officers, directors, partners, employees andloi agents, or which may he asscxied by any third party (including but no limited to Owner's Agents), on account of personal injury, death or property damage caused by, ansing out of, of in any way incidental to or in connection with, Operator's use of the Property or the rights i* ntyd under this Agreement, except to the extent such damage or injury results from the actions of Owner or its Agents or Owner has assumed such liability ire msoaial injury, death, or loss of fir damage to property is the result of the joint actions of Chaner or Its Agents and Operator, Operator's duty of indemnification shall be in proportion to its .allocable share of such action 292. Environmental Cla3rns. It is expressly aereed that the indemnity obligation desizi'bed in this Section 29 specifically includes, but is not limited to, claims iu-is-ng under all fedcaal, state and local ensnroninental laws, rules and ;regulations. 293. Force Maieure Neither party shall be liable tri the other for any damages or for failure to perforin ns obligations under this Agreement dine to fire, earthquake, flood, windstorm and other lice casualty or other causes beyond its szasonable control (including hat not l irlri ted to inability to complete Reclamation responsibilities duo to adverse conditions such as drought; provided, however, that such responsibihties shalt centime but with an exuded completion deadline), nor for damages rausi-d by public improvements sir condemnation proceedings. 30. LAWS, t2U1J S ANI) REGULATIONS. 301. Operator shall, at its sole exp, comply with and take steps to caisure its agent comply with all federal, state and local statutes, rules, regulations and ordination, including wtthorri limitation, those relating to safety and the erVwrur_rneart, that are applicable to Operator's :and/or its agents' use of the Property 302. Witbin ninety (90) days of permanent termination of production operations at the Well Pad, Operator shall provide Owner an environmental s3arvey report documenting that the.. Weil Pad is in compliance wall applicable luval, state .snd federal law and regulations Such ieptrrt shall be prepared by Operator or its consultants. Any ioneumpliance resulting from Opesakor`s operations that is identified in such report shall be brought into compliance within ninety (90) days of receipt of written demand by Owners or within the time specified by any governmental agency with)urisdiction over snob compliance 30.3 No tlart of this Agreement shall be construed as m abridge or relieve Operator from any or all COCiCC regulations, present and future, Or obligations uncle any !ease agreement between the parties 3l NATURE 01 RELATIONSHIP_ The parties acknowledge and agree that this Agreement dues not create any special relationship between the parties, including without limitahon, that of yornt venturers or partners. Nuihnig in this Anima -mid shall be construed as desiwiating Either party an agent of the other. 18 32. AMENDMENTS This Agreement may only he amcricicil by the written €iurcerent rzf both parties This Agreement cannot be amended or terminated orally 33 WAIVER The failure of caber party to enforce any of its rights under this Ageernent upon any occasion shall net he deemed a waiver of such rights on any subsequent occasion(s). The waiver, either express or -implied, by any party of any of the rights, terms or conditions in this Agreement shall not he deemed as or constitute a waiver or any other mins, terms or conditions in this Aereerrical. Any waiver, in order to be valid and effective, must be in writing_ 34. SEVEREABILITY. U any provision of this Agreement is illegal, invalid, or unenforceable under present or future laws applicable to this A, reernent, the parties intend that the remainder of this Agreement shall remain in foil force and effect so as to fulfill as hilly as pos,nble the intent of the fires as expressed by the then existing teuris of the Agreement, including the invalidated prevision. 35. MERGER. All surface use agreements and pipeline or road easements end right-of-way: held by Operator that affect the Property are superseded by and subject to the provisions of this 4greement, except the Surface Damage Agreement between Shaeffer, Ltd and Snyder Oil Corporation dated December 6, 1994 attached hereto as Exhibit "E" which shall remain in full force and effect. NI HEADINGS. Section headings or captions contained in this As,eernent are inserted only as a ziiatier of convenience and for reference, and in no way define, Firm, extend, of describe the scope of this Agreement or the ;Mewl of any provision. 37 CONSTRUCTION. Whenever required by the context of this Agreement, the singular shall include the plural, and vice vasa; and the masculine gender shall include the feminine and neuter genders, and vice ver.sa. The provis;ons of this Agreement have been independently, cpaa-ately and Frix:ty €ret;vtiaterl by the partner as if chalked by both of thein The panties wuevs: any staituterry ui C011 11110“ law presumption that would serve to have this Agreement coosti-ued in furor of or against either party. 38. APPLICABLE LAW, ATTORNEY FEES AND DEFAULT 'rhes Agreement and the Tights of the parties under it shall be Interpreted in accordance wtth the laws of the State of Colorado, by the district court tit the county where the Property is ideated. 1n the event of any dispite, the prevailing party shall be entitled to recover its reasonable costs and attorney fees, including post-ludip-nent collection costs, ria addition tea actual damages. 39. AUTHORITY Operator and Owner eachrepresent that it has full authority to commit tri this Agreement Operator shall.provide Owner with a copy of -rise Lease, including pooling, unitization, or comrnunitizat7on agreement, and spacing orders affecting the Property 19 4U. HEIRS, SUCCESSORS AND ASSIGNS Subject to any laudations on assignment provided in tins Agnxiiient, ens Agreement shill be b€ndin ' n and inane to dm bei • ne parties and their resptcttve heirs, suds. ■ and assi 41 SURVIVAL OF OBLIGATIONS. All obligations, indemnifies, duties, and liabilities widken by Operator under this Agreement shall survive the termination of this Agreement, to the extent described elsewhere in this Agreement The provisions of this Agreement related to Operator's aelivities on the Property, including but not Limited to the provisions regarding livestock, damages, fences, weed control, and erasion control shall also he applicable dung the Reoamntron period. 42 ivIEMORANDUM. Owner and Operator will jointly execute. a Memocandurt, of thus Aweement m a form similar to Exhibtt "F attached hereto for the purpose cif -Placing third part es on notoe of this Agreement. BIM. Ltd. Barbara ]. Mo E�.Tiw.1. LLLP 77?- d1 Gencrui Partner i d ! erine. F. Rogers, General Partner Reb_rak LLLP Shaeffer Family y Genergl Partner Harold B. Shaeffer. Trustee lit Date. 222,5/z9...5- / J2s/z9... - BateX47,} �4 Date 247/44' -- alga offer Family Trust //,‘ I(arald B. Shaffer, Trust= Shaeffer Ltd. Hruaac Management, [cc., Gene Partner Harold B_ Shaeffer, Pmstdent OPERATOR: EnCana Ch'] & Gas (USA) Inc. Bv. els Fox Ate ey--in-Fact 21 EXHIBIT A Ltd. Township S South Range 92 West of the eh P.M. Section 30. tots 3 and 4 Section 31 Lots 1-4, WJ2SE14 Township 7 South, Range 92 West of the 6th P.M. Section 8 5E/4, N12NE/4SW/4, Lots 1 and 2, N12Nr2 of Lot 3 K.R.K. LLLP. Township 7 South, Rance 92 West of the 6th P.M. Section 8• S12N12 of Lot 3; 8t2 of Lot 3; SE14SWt4; St2NE14SW4 Section 7: Lots 1 and 2; E12, Et2W12 Rebjak LLLP Township 7 South, Range 93 West of the eh P.M. Section 11. Et2E12, except 3 acres heretofore conveyed by Warranty Deed recorded as Document No_ 279583 in Book 498 at page 539 of the Garfield County Records Section 14: NEl4NE14 Shaeffer Family Trust Townshjp 7 South, Range 93 West of the 6h P M Section 11. 3 acres heretofore conveyed by Wafranty Deed recordect as Document No. 279583 in Book 498 at page 539 of Garfield County Records. Shaeffer Ltd Township 7 South, Range 93 West of the V P M Swan 17. W!2; ' P14: N12SEl4 Section 13: N E/4N E14 Township 7 South, Ranoe 93 West of the S3" P.M. Section 18: Lot 1, Et2NW14 and 3 acres situated in Lot 2 described as follows: Beginning at the NW comer of the NFt4SW/4 of said Section 18; thence South 1320 feet; thence West 99 feet; thence North 1320 feet, Thence East 99 feet to the place of beginning EXHIBIT B Township T South. Range 92 West. Section 6 A 30 fob wide easement along the west sector tined Sedon 6 2 Townshgp 7 nth, Range 92 West, Section £ A 37.5 foot wde easement along the south Sutton line of Section 6 3. Township 7 South, Range 92 Wet, Sedan 6- A 1 foot vde easement along the east moron the of Section 6, Including the exrstkig well road on the ease sechon -lire of Section 6, 4. Tcvs rshrp 7 South, Range 92 West, Section 7 A 37.5 foot +vnde easement along the north section Eine of Section 7 5 Township 7 South, Range 92 West, Section 7• A 75 foot wide easement from the center line of existing well road running North and South along the West section line cd Section 7 6 Township 7 South, Range 92 West, Section 7 A 75 foot wde easement along (he south section line of Simon 7, following and staying on the north side of County Read 322 In the southeast corner 01 Section 7 7. Township 7 South, Range 92 West, Sect 7 A 75 Rosi }ciliac, easement along the east seclron line of Section 7 9. Township 7 South, Range 92 West, Section 1.6 A 75 foot wide easement from the center line of the existing well road running north and u ih along the west section tine of Section 18 9 Township S South, Flange 92 West Section .3+3 A 75 Foot wide easement from the fence line of County Road 333 running along the south. side of -that roadway. 1a Township 7 South, Range 93 West, Se -chore 1 t A 75 foot wide easement along the north section tine of the NEi4NE14 of Section 11 11 Township 7 South, Range 93'West, Sedan 11_ A 75 Boot wide easement along the the west line of the NEl4NEf4 of Section 11, and along the west tine of the north part orf the SEI4NEJ4runnrng from the northwest finer of the NEANEhl. to the existing pipeline right-of-way of Operator that runs east and west 12 Township 7 South, Range 93 West, Section 12 A 75 foot wide e..1semcnt among ttte north section terse or Section 12' 13 Township 7 South, Range 93 Worst, Section 13 A 75 fool wtde easement along the north section fine of the :NWIJ4NE14 of Section 13 14 Township 7 South, Range 93 West, Section 14 A 75 for.it wide easement along tie soucit section tine of thee NE1/ NEld 01 -Section '14 lora, 1,. aortsitaxra • E CI- I.SIT"C" PIPELINES 0 9:41 im 65-93w 6S -925.T 3 -93'J 75' man. 1.71.1.• 44.3. YS71 EXfi1BIT= C'"' ROADS r ,+r SWR ,1.etl.q • V • IA )11 irks V er 3 x vI: n fr ... Schaeffer elf Rd, r•r i 1 Y •AA{ 1 S t. 32Z ti. r 0l n . C ci a . i • . �. -.� Shaeifee Properly O+r*r:rrlrr• TES•T75, RggW. 9'.W, Gtli P,VI % t.) . 'S '`.a.C3 �.s tfry;[rd 4 EYti18H ll PIPELINE AND RIGHT OF WAY GRANT KNOW ALL MEN BY THESE ?RESENTS: That whose address is hereinafter called "Grantor", For and in consideration of iho sum of Ten Dollars ($10 00) and other good and valuable consideration, the receipt anc sufficiency of which is hereby acknowledged. do hereby grant and convey unto EnCana Gathering Services (USA) loc., with an address of 37017th Street. Suite 1700. Denver, CO, 80202, hereinafter called "Grantee", a non-exclusive easement and right-of-- way itght-ofway vinth ingress and egress to locate, fay, maintain, inspect, replace, erect, resize, opErate, and remove one or more pipelines and such drips. valves, Fittings, meters. and other equipment and appurtenances as may be necessary for the operation, over, through, upon, under and across the fallowing described lands rn Garfield County, Colorado to wit SEE EXHIBIT "B" The location of the easement and right-of-way granted s approximately desrxrbed on Exhibit A and is fifteen Feet (15 U`) on either side of the constructed pipet€ne as it runs through the above referent d lands and in addition. Grantee shall have the right to case an addrtionaf temporary work space. which small be air ,additional width of twenty-five feet (25 g') a"ong the easement for the r onsrderatton statist above The additional ternporan7 workspace shah in no case endure for a period in exc s of one hundred nighty (183) days frorn the date hereof or the completion of initial installation, whichever period is the shorter Grantee agrees that any pipeline installed shall be at a minimum depth of torty- eight inches (48) below the surface o the ground TO HAVE AND TO HOLD unto Grantee, the easement, rights artd pnwrts herrn granted and conveyed for a period of two (2) years following Grantee's abandonment of the pipelines installed hereunder Grantee shall have atf cher rr€dhts and benefits necessary or convenient for the full enpyrnent or use of the rights herein granted Grantee hereby agrees to pay Grantor a one-time cansrderat;on, prewolsly agreed upon, as full consrderatron for the pipelines and right-of-way rights. herein desci ibcd Grantor shall have the right to use and enjoy the above-described premises. subject to the rights herein granted The pipeline right-of-way granted herein shalt he utilvtd for Grantee's oil and gas operations only and shall not be used for any other purpose Grantor shall not interfere with or impair or permit others to intenere with or roe irn air anv way, the exercise of the rights therein granted to Grantee, and Grantor shah not build, construct, of peank to be built or constructed, any structure or obst-uction over pipeline right-of-way A 1 pipeline(s) constructed and maintained under the terms of this hgreernent shalt be oaristructed and main d in accordance with that certain Surface Use Agreement dated e68111 ("WA") In the event there is a conflict between this Pipeline and .Right of Way Grant and the Silk the terms of the. SUA shaft goiern and control 'the pates hereto This Grant rs a covenant running with the land and shall he binding upon the partes hereto. their heirs. devises, representatives, successors and assigns, and the n hts, privileges and authorities herein granted shat] be assrgnah!e tnnether o• separately arxi in whole or in part This instrument covers the entire agreement between the parties. arid. no representation or statements. verbal or written, have beers made modifying, adding to, or changing the terms of the Grant Wl"Tft'E55 the signalure(s) of the parties hereto on this day of 200 GRANTOR: GRANTEE 2 toe g St ALL! ll#li ilktrn nvncr3tsx.�. KNOW ALL MEN 8Y THESE PR.ESEi'1TS: That the undersigned Shaeffer, i,'tsl. rice o+u i(s), recognizing that the following described lands are suit. to one or molt oil w d (casts of record, and that the lessee and its ins and the writ of such to whom chis insbuinnit is delivered, havey-' w. ri hts it the use of the sauce of dr lands covered by such lease or leases, and being now informed al' the propos .d use, including irigiess and egress, placement of drilling location and other uses incident to the drilling for and the production of oil or gas on the following described Janc#s, do hereby xgrec, in mnsideration of the premises and the further tourist of the agent of lessee or its assigns, to pay to 11x: undersigned the suit; of to the micnowledge. and he does hereby acknowledge, subject .only to the timely re:ceipe of the aliirve sum of money, such sum as full settlement and satisfaction of Al detriment, injnrx s and damages growing out of, incident to, or in connection with tete drilling and prudnctinn from well(s) Curacy 1103-9 fi 113-16 upon the lidlowing described lands in Garlie1d :County, Colorado, to wit, TOW ISRIP 7 HJT E RAI= 92 WEST lot 2, Lot L; mak: Section 0 SEE ATTACHED "EXIIL13Tr A" ROAD WILT.. 1414E ACCESS TD.DRILI SITES 3N• a ISMS 13=17S -103W 18-T7 S-R92W caused by the moving in and the moving out of .agent's derrick, drilling tools, vehicles, and all other machinery and equipment necessary or :incident to he drilling, testing, completion and operation of such well(s) for oil anti gas, and all rtrads, pipelines, tank batteries, and lands involved in permanent surface installations. And for the same considerations, the undersigned dm= hereby release, acquit, and dis*argc the said SNYDER gilt- CORPORATION„ itself crud the principals .for which it shalt act, of and from any and all of, incident to or in connection with drilling of said wctl(s) and operations incident thereto as aforscaid, and does particularly release, acquit, and discharge said SNYDER OIL CORPORATION, and its principals, of and from, but not by way of limitation to, all such claims for detriment, injuries, and damages to said land, the improvements thereon and appurtenances thereto, or to any grass, -vegetation, slit oils, trees, crops, livestock, or other personal property growing or located thereon, or any damn or fuss -whic h the undersigned las or might hereafter sustain due to diminished quantity or quality of future crops caused by t3,e .above rentioned operations. Dated this ip day of _ d P_L '. lL , 1994. Signed: Shselfer, Ltd., a Limited Partnership /FL,&fhe 23-- 15;4(40;61i I1_13. Stpaef>:er Genet'arxner William 11. Eayiii f r 'IXI4RT A BELOW ARE SPECIHC ITEMS COvERING THE ROAD SURFACE DAMA(E AGREEMENT OVER SHAEFFER LT17S PROPERTY SECTION 18, 11/01 T S, R 93W, TO SERVICE SNYDER OIL CORPORATIONS GAS WELL SING SITES ON SECI1ON 18, -TM 7 S, R 92 W. AND SECTION 13, WIN 7 8, R 93 W. 1_ SNYDER OIL SHALL. ERECT "NO TRESPASS, PRIVATE ROAD` MONS AT BOTH THE ENTRANCE CFF OF SHAEFFER ROAD AND AT THE PROPERTY UNE FENCE BETWEEN SHAEFFER LTD AND GRAHAM. /0C 2. A LOCKED GATE AT THE PROPER1Y UNE BETWEENSHAEFFER LTD AND J/ONLY SNYDER on.. P NNEL MtHAVE KEYS TO THIS GATE _ SNYDER OIL SHALL INSURE THAT THIS (GATE BE CLOSED AND LOCKED AT ALL TIMES. FAILURE TO DO SO. ON A REPEATED BASIS. SHALL BE CAUSE TO TERMINATE THIS ROAD SURFACE DAMAGE AGREEMENT. 3. ROAD SHALL BE MALL WEATHER ROA) CoNSTRUCTED ON THE EXISTING PIPELINE RIGHT OF WAY USED TO CONSTRUCT THE S' GAS UNE . SNYDER OIL SHALL PERFORM PERIODIC MAINTENANCE ON THIS ROAD.. 4. SEER OIL HAS DESIGNATED IWO (2) WELLS 3H#TWILL BE SERV1CZO BY THIS ROAD. ANY FUTURE ACOMONS S AI R CHANGES TO THIS DRILLING PROGRAM MUST BE MUTUALLY -AGREED TO BY SHAEFFER LTD A 55013 FEE SHALT. BE PAID TO SHAEHER LTD FOR ANY SUCH ADDITIONAL DRILLING SITES SERVICED FROM THIS ROAD_ 5, THIS ROAD SHALL BE ONLY FOR THE EXCLUSiNE USE OF SNYDER OIL CORPOPATJON . ITS HEIRS, OR SUCCESSORS. UNDER NO CIRCUMSTANCE •SHALL THIS ROAD BE USED BY ANY OTHER PARTY OR FOR ANY OTHER PURPOSE. S. IF IN THE .FUTURE ANY GOVERNMENTAL AGENCY OR INDIVIDUAL ATTEMPTS TO DESIGNATE OR DECLARE 11-116 ROAD A PUBLIC ACCESS, A PRIVATE ACCESS AND/OR PUT 'ISS ROAD TO ANY ADDITIONAL USE OTHER THAN THE PRIVATE USE REQUIRED BY SNYDER OIL ACTIVITIES/ , T1 &SPIDER 011. SHALL BEAR ANY AND ALL LEGAL EXPENSES RERU1RED TO SUCCESSFULLY DEFEND AND RETAIN THE USE OF TIS ROAD RIGHT OF VVA'Y TO ONLY SNYDER OIL ACTIVITIES. SIGNEOA 710/1170.4141. ,f)/0.A4of--( 'a2 -e -t SNY ]it C SHAEFFER LTD. r EXHIBIT F MEMORANDUM OF SURFACE (]SE AGREEMENT Stash-: Colorado C'nunty Garfield CMsvaer: B.J.M. Ltd. K.R. LLEP Rebjak LLLP Shaeffer Family Trust Shaeffer Ltd. 5957 County Road 319 Rifle, CO 81650 Operator: EnCana Oil & Gas (USA) inc. 370 176 Street, Suite 1700 Denver, CO 8021J2 Date of Agrflprneot: 21195 For adequate consideration and as of the effective tate slated above, the Owner t x d Lessee named above, have executed a Surface Use Agreement (the Ageer t") Much governs the Operator's oil and gas operahons on the surface of the lands deseiribed on the attached Exhibit A. This ivfemcarandurn is placed of recant for the purpose ofgr.firig rsottee of the Agreement and its given tri lieu of filing said Agreement in full for reconi cu the .official records of Garfield Cssundy, Coiuradrs_ f x cawed cilgics of tie Agi=mei n are maintaland en the perssesscon of -both the Owner and Operator. This Memorandum is signed by Owner and Operator as of the date of acknowledwncnt of thew stgrratures, but is effective for all purposes as oftke Dale stated above_ B.JJ 1. Ltd. Date. I3ariaara I Moms, General Partner z � � STATE OF COLORADO ) COUNTY OF The romping ingirumvnt was :subscribed and sworn to before me on 2005, by My mm ion expires : Witness my hand and seal, K.E.K. LLLP Katherine F Rom, General Partner S f A-rB OF COLORADO ) ) ss. COUNTY OF Notary Pablte Date The foregoing instrument was subscribed and .swem to before me on 2005, by My commissto n expires: W tt ess my band and seat Reb,jak LLLP Shaeffer Family Toast, General Partner Harold B. Sh eefer, Trustee STATE OF COLORADO ) ) ss • - 5k49i51i-71 U1I !I/UMW 3:117 PAT Notary Public Tate: oft t •� e COUNTY CSF ) The forcgci r tns runtont was subscnlred and swum to before me on 2005, by My comaussu a Awes: V''liness my hand and %tvil Notary Puhhic Shaeffer Family Trust Harold B. Shaeffer, Trustee STATE OF COLORADO ) ) ss. COUNTY OF ) Date. The foregoing instrument was subscribed ared sworn to before -me on 2005, by My cnmxtxissiwf. egpnf es: Warless ray hand and sal_ Shaeffer Ltd_ Hurnac Management, +lrrc, Genual Partner 141,rdrf n LTh! MT r Pre CeA9ret STA TE OF COLORADO ) )ss COM/TY OF Notary Public Darr. i 14 p The foregoing uzstrurncnt was subscribed and swum to before nie on 2X3, by My commission cx fires • %mess my hand and seal EnCana Oil & Gas (USA) Inc. Joel S. pox, Attorney -:n -Fact STATE OF COLORADD ) ) C(TY AND COUNTY OF DENVER ) Notary ?dim The foregoing instrument was acknowledged before the an this day of 21)05 by Jo& S. Fox, Attorney -in -Fact for EnCana Oil & Gas (USA) Inc., a Delaware corporation, obi behalf aU of said corporation. My Comrriiss i on Expires._ Notary Public EXHIBIT A Township 6 South. Range 92 West of the 6th P M Section 30 Lots 3 and 4 Section 31 Lots 1-4, W/2SE/4 Township 7 South. Ramie 92 West of the 8"' P M Section 8 SE14; N12t I4SW14; Lots 1 and 2, NI2N12 of Lot 3 K.R.K. LLLP, Township 7 South Range 92 West of the 6 ' ? M Section 6 S12I 2 of Lot 3, SI2 of Lot 3, SEI4SW14, SI2NEMSW4 Section 7 Lots 1 and 2, Ell, EJ2W12 Rebjak LLLP Township 7 South, Rance 93 West of the 6"' P M Section 11 EJ2EJ2, except 3 acres heretofore conveyed by Warranty Deed recorded as Document No 279583 in Book 498 at page 539 of the Garfield County Records Section 14_ N041,4E/4 Shaeffer Family Trust Township 7 South, Range 93 West of the b"' P M Section 11 3 acres heretofore conveyed by Warranty Deed recorded as Document No 279583 in 600kc 498 at page 539 of Garfield County Records Shaeffer Ltd Township 7 South, Range 93 West of the fig` P M Section 12 W12, NEJ4, Nf2SEI4 Section 13 NE14NE14 Township 7 South, Range 93 West of the E P Section 18 Lot �, Ef2NW/4 and 3 acres situated in Lot 2 described as follows 3eccinning at the NW corner of the NE/45W/4 of satd Section 18, thence South 1320 feet, thence West 99 feet, thence North 1320 feet, thence East 99 feet to tho place of beginning %IFJ EXI-IIBIT G 7 4111111111111111111111116 1111 ALICIVIIICKNO»I IN11 III Receptio&t: 701401 09/1512010 03:51:40 PM Joan Rlbarlco 1 vt 7 Roc Foe:$41.00 Doo Fao:0.00 GARFIELD COUNTY CO RIGHT-OF-WAY EASEMENT .Cd pp FOR AND IN CONSIDERATION of the sum of TEN AND NO/100.DOLLARS'(10.00)' d other good and valuable consideration, in hand paid to Renzel Land LLLP, whose.rnailing.address is 980 E Saddlehorn Road, Sedona, AZ 86351 (hereinafter referred to as GRANTOR,), the receipt and sufficiency of which is Hereby acknowledged, GRANTOR hereby grants, sells, conveys and warrants to Encana Oil & Gas (USA) Inc., whose mailing address is 370 17th Street, Suite 1700, Denver, CO 80202, its successors and assigns, (hereinafter referred to as GRANTEE) a non- exclusive and permanent easement, thirty (30`) feet in width, for the purpose at any time and from time to time to lay, locate, construct, maintain, inspect, alter, repair, operate, protect, change the size of, replace, relocate, mark, remove andlor abandon in place, one (1) or more pipelines with associated appurtenances, equipment and facilities useful or incidental thereto, including, but not limited to, valves, metering and corrosion control equipment, and any above -ground appurtenances, as may be necessary or convenient, for the transportation of natural gas and its constituents, water, petroleum, petroleum products, liquids and derivatives thereof, upon and along a route to be selected by GRANTEE on, over, across and through lands owned by GRANTOR, or in which GRANTOR has an interest, situated in Garfield County, State of Colorado described as follows.. Township 7 South, Range 93 West, 61h P.M. Section 1 and 2 Township 6 South, Range 93 West, 6`h P.M. Section 35 and being the same land described in that certain Deed recorded under reception number 666072, of the Clerk's office of said county, to which reference is made for further description. GRANTOR grants to GRANTEE a thirty (30) feet permanent easement as defined on Exhibit "A" attached hereto and made a part hereof, GRANTOR grants to GRANTEE a temporary easement up to thirty five (35') feet in width adjacent to the permanent easement for the purpose of enabling GRANTEE to construct the pipeline or pipelines. And during temporary periods Grantee may use such portion of the property along and adjacent to said permanent right-of-way as may be reasonably necessary in connection with construction, maintenance, repair, removal, or replacement of pipeline(s) or facilities, but at no time is it to exceed the original temporary construction easement. After the post -construction cleanup following the pipeline construction, the permanent easement area shall be limited to a strip thirty (30`) feet wide. The permanent easement, located on the above described lands is generally described on Exhibit "A" attached hereto and made a part hereof. Exhibit "A" attached hereto is not intended to show the final location of the easement or pipeline as actually constructed; the actual location of the easement will extend ten (15') feet on each side of the centerline of the permanent easement as actually laid. GRANTOR further grants and conveys unto GRANTEE the right of unimpaired ingress and egress on, over, across and through the above-described lands including other lands owned, leased or claimed by GRANTOR which are adjacent thereto or contiguous therewith for all purposes necessary or incidental to the exercise of the rights herein granted, with the further right of entry to X1111 `�1 i1��;lINl kit %m IlH,L 'IN 111 11111 RsceptIonl$: 791401 09l1.60101O 03:81:40 PM duan A1Wrl a 2 o1 7 Rea Fey:$41.60 Coo Fas1O.00 GlRFiELO COVNnY GO maintain the easement herein granted clear of trees, undergrowth, brush, structures, and any other items, to the extent GRANTEE deems necessary in the exercise of the rights granted herein. GRANTEE shall have the right to select, change, and/or alter the right-of-way easement through the property above described or alter the route prior to or during construction with the consent of the GRANTOR, which consent shall not be unreasonably withheld, conditioned or delayed. GRANTOR shall have the right to use and enjoy the above-described premises; provided, however, GRANTOR shall not exercise such use and enjoyment in a manner that will impair or interfere with the exercise by GRANTEE of any of the rights herein granted. GRANTOR shall not change the grade over the pipeline constructed hereunder and shall not build, create, construct, or permit to be built, created, or constructed, any obstruction, building, lake, engineering works, or any other type of structure over or on said Easement without advance written consent of GRANTEE. All equipment or appurtenances to the pipeline or pipelines, which shall be on or above the surface of the ground, shall be installed in a manner to protect the GRANTOR'S livestock when necessary. GRANTEE agrees that during construction of said pipeline or pipelines, livestock crossings will be provided where necessary. Further, all fences that must be severed or removed for installation and maintenance will be reinforced prior to severing adjacent to where the cut is made to prevent damage to the fence line. Temporary gates to preclude the escape of GRANTOR'S livestock shall be installed where necessary. Alt fences that are cut or removed shall be restored in as good a condition as existed prior to installation of the pipeline or pipelines. GRANTEE agrees at the time of construction to bury said pipeline or pipelines to such depth as will not interfere with lands under cultivation, and in accordance with applicable federal and state regulations. Following installation of the pipeline or pipelines, GRANTEE agrees to restore the ground as nearly as is practicable, to its condition prior to the installation of the pipeline or pipelines and in accordance with federal regulations. GRANTEE shall pay taxes, assessments or public charges levied or imposed upon its Easement or upon other personal property, improvements or fixtures owned or placed by it within the Easement subject to its right to contest same. In the event said taxes, assessments or public charges are not separately assessed, then promptly following written notice from grantor, Grantee shall reimburse Grantor for any taxes, assessments or public charges attributable to its Easement. GRANTEE shall, at its sole expense, keep the lands subject to the Easement granted herein free and clear of all liens and encumbrances resulting from GRANTEE'S and its agents' activities on the said lands and shall indemnify and hold harmless GRANTOR from and against any and all liens, claims, demands, costs, and expenses, including, without limitation, reasonable attorneys' fees and court costs, in connection with or arising out of any work completed, labor performed, or materials furnished with respect to or by GRANTEE and/or GRANTEE'S agent. GRANTEE warrants and agrees that it will comply with any and all laws, ordinances, orders, rules, regulations, standards and licensing requirements of any state, federal, municipal or local authority or agency having jurisdiction, now in force and effect or which may be passed, enacted, Right -of -Way Easement Page 2 01'4 1IIIiYK�� �11ri iMv11,11 ��fILI�IRICG�{I 'I �I��4iN�+11III Receptionft: 791401 ev is 7QIQ 03:51:40 PM titan Ubtsr too 3 of 7 ROO Fte:341,MQ Doe Fte:Q,QQ GARFIELO COUNTY CO issued, revised, required or later promulgated, incident to or arising out of or in any way connected with Grantee's utilization of the Easement. Grantee agrees that it will not discharge, dump, bury or store for purposes of treatment or disposal, pollutants of any kind on the Easement including, but not limited to, pollutants such as oil, chemicals, toxic substances or materials, hazardous wastes or hazardous substances, including pollutants as the sante may be defined, now or in the future, in any federal, state, or municipal laws, rules, regulations or ordinances. Grantee specifically agrees to fully indemnify and hold Grantor harmless from and against all claims, demands, losses, costs of removal and/or clean up of pollutants, judgments, causes of actions, fines, penalties, costs, including, but not limited to, reasonable attomey's fees and costs of court, arising out of or connected with Grantees noncompliance with the terms of this Easement. Notice under this Easement may be made by one party to the other in writing by United States mails, telegram, facsimile, or be delivered in person to the following addresses: GRANTOR Benzel Land LLLP 980 E Saddlehorn Road Sedona, AZ 86351 (928) 284-0716 GRANTEE Encana Oil & Gas (USA) Inc 370 17th Street, Suite 1700 Denver, CO 80202 Attn: Group Lead, South Rockies Land (303) 623-2300 This Easement shall be governed by and construed in accordance with the laws of the State of Colorado, to the extent said laws do not conflict with any other federal statute. TO HAVE AND TO HOLD unto GRANTEE, its successors and assigns, so long as the right and easement herein granted, or any one of them shall be used by, or useful to GRANTEE for the purposes herein granted and the provisions of this Easement are to be considered a covenant that runs with the land herein described. The Easement and rights herein granted may be transferred, leased or assigned, from time to time, in whole or in part. It is agreed that any payment due hereunder may be made direct to said GRANTOR. Section 1445 Certification — Under penalties of perjury, the undersigned GRANTOR(S) hereby certifies that it (they) is (are) not a non-resident alien, foreign corporation, foreign partnership, foreign trust or foreign estate for purposes of U.S. income taxation. EXECUTED as of this day,,2 of , 2010. GRANTOR GRANTEE Benzel Land LLLP hn Benzel eneral Partner Encana Oil & Gas (USA) Inc. Ricardo D. Gallegos 1 e" Attorney in Fact �f'1 Right -of -Way Easement Page 3 ofd • 1114>llP�iLL1i ?411144111#�h 1 l l� �lll 11111 09/1Rec�pt4enM: 791401 4loo ofg7 Rao FFee.:14/2010 1.00 DocPff 4F sn :000 COMMIX COUNTY CO STATE OF COLORADO ) )ss: CITY AND COUNTY OF DENVER ) This instrument was acknowledged before me on this -A.111' day of Mf. 2010 by Ricardo D. Gallegos as Attorney in Fact of Encana Oil & Gas (USA) Inc,, on behalf of said corporation. MY COMMISSION EXPIRES: Notary Public in and for said State and County Residing at : .1(64 E. Ottirirl ibiLlittliVIDIA DANIELLE SCOTT NOTARY PUBLIC STATE OF COLORADO STATE OF ARIZONA COUNTY OF )ss: My Commission Expires 06/11/2012 This instrument was acknowledged before me on thi o11"4+A day of = as 2010, by John Henze! general partner of Henze' Land LLLP, kn , to be the person escribed in and who executed the foregoing instrument, and •. • ed to me that she executed the same. � 4ii • is r _ 4 for said State and County MY COMvIISSION EXPIRES: C . Ad acs (1,0 t ` Residing at : st36a1 DAWNA WES7BERQ NCITAFiY RAW - ARIZONA YAWN COUNTY hhl corrrnl9rdan eq#t. January 20,20.14 Right -of -Way Easement Page 4 of 4 • 1111 WilFA PairtIMM MaillAgadigibtilitilifi 11111 Raeappticn11: 79145t 09/1612010 03:51:40 P11 Jean Maar lea 5 of 7 Rea Pes::41.00 Ooa Faa:0.40 GARFIELO COUNTY CO EXHIBIT A PAGE 1 OF 3 T I pp Owner. BENZEL LAND LLLP v 14441441 1/4 NANO sac IMI 4!A SECTION 2 5897.Y93'M; 2637.75' .; 647.0 Centerline of Pipeline Right—of—Way UNE TABLE LINE BEAR#NC LEMCTH C22 14146'09'79-W 110.73 1.23 58932'30W �5.81n2 30'W , _m OW 1089.62 474 281.64 126 140112213'19 577.17 127 NO037•3 Ze%2i 1.28 N0037 3- 1r 4 707,62 1.29 11!5043'51 r 149.60 1.3E N34nr49E 131.78 131 14212309E 179.12 1.32 (148 49'48 E 338.01 88.59 1.33 N08V9'48'E 134 1410,7'55V 285.72, 1.35 NI878'SST, 262,43 1..36 NI9'440E, 431.65 137 4,132'461Q1W 320.23 138 863902'! 101.07, 430 58928 04'1Y 145406 L * S4932221W 30.70 1,41 58734'38'W 155,64 LEGEND 4, PUBLIC LANG SU:tVEY ODIUM o ANSA PONT P.0.9. POonT OF B£GTAININC P.O.E. POINT OF MING p 0,9 Rood (fly) Owner: BENZEL LAND LLLP Actat aOIDG Nett ML UP its rxn 4O4 14 Owner BENZEL LANG LLLP res N89133'251 aW e1/ , L24 L23 2638.09' I614,V947 �? I s NCISP CONON !E 2 1117329/1 ANNOY E*ffip Fb491• fr)r) 'a, .0.9 No. f C71JENT: EnCana Gil & Gas (USA) Inc, SCALE: AS AS SHOWN 1 1 £RAWN EY: 9!11 oesc norr. HUNTER MESA TO PUMBA PIPEUNE ACROSS BENZEI. PROPERTY SECTIONS 1 & 2. T7S. R93W & SECAON 3�5, TSS. R9SW CARFIELII COUNTY, COLORADO OATS DRAM 8/24/10 SUROE4L0 BY:agAs W7ASATCf SURVEYS ASSOCIATESaT� 90e MAIN STREET. VANSTON, W 1 82930 Y� (307) 769-4345 PROACT NDICBERT 10-04-51 EXHIBIT A SHEET 1 of 3 1111 rirk ar/11111a !JA' lorttiewwW10114 11111 RecgpiiOnO: 701401 rc 8 o 7 Ria 03:61:40 u $4$.00 OaceF46:0.00IGARFIELD COUNTY CO EXHIBIT A PAGE 2 OF 3 1 W1# 1/4 Ma TEG Y 1.41 n� s�cTlvN 1 Owner. BENZEL LAND LLLP Centerline of Pipeline Right -of Woy N87D705 21.65' NQI•W C4iI; 46.09 S87 26'10 W. 2614.85' 12 HUNTER MESA WATER TREATMENT FACILITY & COMPRESSOR STATION P.O.E. No. 2 NW.1$'S2`W 6e7. re' CsE E0-. sic. r to P.O.E. sw>sr CCM. SLG i 1147 FIATS UP P.0.0. -No. 2 Owner: SHAEFFER LEGEND PU$UC LAND SURVEY CORNER o mcl.f PONT P.o.a PONT or mamma P.O.E. POINT OF CNINNO 6.11111: EnCana Oil & Gas (USA) Inc. CME AS SHOWN r LIUR1LltD BY: 0ESCRIPi1ON: HUNTER MESA TO PUMBA PIPELINE ACROSS BENZEL PROPERTY, SEC1101/5 I do 2. T7S, R93W & SECTION 35. T6S. R93W GARFIELD COUNTY, cOLCQAOO NON: L ONMNi BY Si.iY DATE GRAM 8/24/10 IPROECT M EN: 10-04-5 WASATCH SURVEThC ASSOCIATES Ca 908 tom STREET. EVANSTON. WY !IMO . vaa= (sol) 7e9-4555 sMfr EXHIBIT A 2 of 3 11110o1l1ftt7011h 1raliklikl1i1a'ft'f11hY1l 1i 11111 Rete tion**: 791401 709of 7 Roo 03:51:40 PM Doc F* Jean p0.00ieo GARFIELD COUNTY CO cAniot t n PAGE 3 OF 3 LEGAL DESCRIPTION A pipette rlght.ofaray scared fn Ire SW S1/2 orSecebn 1 and ate E1n $E/f4 NM Lot I of Sealer) 2, T73. R93 W and the 8E114 of Section 35, TSS R93W, 07N A.M.. GarRald County, 0:00,000, 810 ged a of said dOti-ofiray being more perUadarly described as lodatra: Convoencing of IAB Seutlrwest corm of sold Section 1 end Aiming thence N89 5'. 19995 feet ming the South fin thereof to the POINT OF BEGINNING; thence N46'09T9'W 110.73 rent thence 589'3210'W. 121.03 feet toe paint on Ila East One of sari Section 2: sail paint tying NO0'423811; 79.03 feat frank the Saulheasr cofinerlhrrechl• Medco oon1SnrtIrhg S89'32'30171, 1089.62 feet Mance N44'0934104 281.84 feet thence N01 Yr2'13'S+Y, 577.17 reef thence N00.51795 -W, 785.21 Feet taence N00'57 -49-W, 707.62 feet Macias N50`43'51-6, f49.80 feet; Mance N34 A7'4rE 131.70 feat thence N2123'29'E. 178.12 feet thence N08 49'46'E. 338.01 feet toe point on Me Scutt ane of saki Sectfon 35. said paint lying 589'3153' 99008 feet fiT;ort the Southeast corner MOO thence ount"'1u ,9 N88'49'45 -E. 8&59 toot thence N10'1755'E 288.72 feet therm N16'18'53 F 282.45 feet thence Nig 4144'€ 431.68 reN32'4610"W, 320.23 fest thence 568 5902 W 101.07 feet: thence 389'28041V, 1453.08 feet: thence 549'3271^11f, 39.78 feat thence S87'34'38114 185,64 feet to the POINT OF ENDING of this portion of said centerlines said paint tying on the West Gibe of said 5E1/4 058ction 35, NO0'30'41"Y. 1288.72 fest from the Southwest comer {Sau1h 114 corner) of said 9E114. Aho, BEGINNING ata point on the Scuta Una of saki Section T. tying 887'28'10* W. 710.97 feet from the SC theesi coater Ihereaft thence N01 40'18 W 46.69 feet: Mance N87'27135E 24..68 feel to the POINT OF ENDING of tl8s pertnon or said canter6ne, said point lying €88'38521+1: 587.18 feat from said Southeast corner Section 1. Sailomen** being 7692.15 feet to length. BASIS QF BEARING The rose Worry Am this survey is I8a O3 Stn, a6?a.o8feet balmier] fauna «fMet** the Swezweet Cover i nitre Sov61 C1r*-Qu666,Comer of Sacaw 1, 773 ROW RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL BE Nat Sea 1, T75 R93W 303.13 7892,15 t Soc. 2, T75 13W 421717 See 35, TES R93W 3171.25 Tom, 7692.15 CFR TIFICA TE OF SURVEYOR 1, Ted Taggart of Fiume, Colorado Hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for EnCana OH & Gas (USA) Inc. and that the results of which are correctly shown hereon. WENT: EnCana Oil & Gas (USA) Inc. DESCRIPTION: HUNTER MESA TO PUMBA PIP£UNE ACROSS 8012€1 PROPERTY, SECTIONS 1 & 2, 175. R93W & SECTION 35, T65, R93W GARFIELD CIXINTY, C0LORA OO OCALE: AS SHOWN DRAY/NOMDRAY/NOM SUM DATE CRAW 8/24/10 PROJECT NU1ht#Efi 10-04-51 ti WRYEYE0 BY: MASATal SUR1111NC ASSOCIATES 906 MACH STREET, EYAN$TCF1, WY 82930 (307) 780-4545 EXHIBIT A SHEET 3 oF 3 1111 ' 11 IV4PI W WL 114 111 Rectption* : 795021 1tI30 2010 01 38 56 P11 Jean PlRerJaa 1 of 1 Per Feat 111 00 Lkc Foe 0 Q0 PIRF0F1.l {00JTY CO STATENT OF A.UTE-IORITY CONFORMED COPY Purstiant to C.R.S. §38-.34172, the undersigned executes this Statement of Authority on behalf of BENZEL LAND L.L.L.P., a registered limited liability limited partnership, an entity other Than an individual, capable of holding title to real prop -Toy (the "Entity"), and states as follows: The name of the Entity is BENZEL LAND I.-L.L.P. and is formed under the laws of Colorado. The mailing address for the Entity is 9S0 E. Saddlehorrn Road, Sedw a AZ 81.15A The name and/or position of the person authorized to execute instruments conveying, encumbering, or otherwise affecting title to real property on behalf of the Entity is John Benzel The limitations upon the authority of the person named above or bolding the position described above to hand titer Entity are as follows: NONE Other mailers concerning the manner in which the Entity dells with arty irnterest. in real property are: (if no other matter, leave this section blank) EXLCU 1 ED this /6 day of /4-4910.. /& . Narn : John Belize' Til : General Partner STATE OF ARIZONA ) )SS. COUNTY OF YAVAPAI ) The foregoing instrument was acknowledged before me this itS44, day of Avo."kor,411,_, 20 [ O by JOHN BENZEL, on behalf of BENZEL LAND L.L.L.P. Witness my hand and official seal. My commission expires: r i al ILJ BENZEL LAND E.iJ.-P.. Ret (1-11JF'fl 1_R MESA TG P1!MA 4'L) 0AWNA WEST 3G NINARY PUBLIC - ARMOOLA YAYM, i COMITY X71 Ctimalibrliur. Etpleue January 29, 2014 MOSES, WITTEMYER, HARRISON AND WOODRUFF, P.C. LAW OFFICES 1002 WALNUT STREET, SUITE 300 JAMES R. MONTGOMERY BOULDER, COLORADO 80302 CHARLES N. WOODRUFF TIMOTHY J. BEATON (1541-1996) RICIIARD J. MEHREN TELEPHONE: (303) 443-8782 FAX (303) 443-8746 COUNSEL. WWW,mw1m.com RAPHAEL J. MOSES JOHN WIT FET EMYER AARON 5. LADD ADDRESS CORRESPONDENCE TO: DAVID L. HARRISON CAROLYN R. STEFFL P.O. BOX 1440 WILLIAM M. STENLEL BOULDER, CO 80306-1440 October 13, 2010 Christopher Durrant Encana Oil & Gas (USA) Inc. 370 17th Street, Suite 1700 Denver, CO 80202 BY EMAIL AND MAIL Re: Availability of Water for llydrostatic Testing of Natural Cas Pipelines Dear Chris: This firm represents Encana Oil & Gas (USA) Inc. ("Encana") with respect to its Colorado River basin water right matters. Encana has asked us to provide our opinion as to whether the water rights it owns in the Colorado River Basin will provide sufficient volumes of water for hydrostatic testing of the below -described natural gas pipelines that are proposed for construction by Encana. Encana owns the water rights described in the June 11, 2004 Quit Claim Deed attached as Exhibit A to this letter. Encana's primary Colorado River water right is referred to as the "Pumping Pipeline" and is identified in the top table on page A-1 of the Quit Claim Deed. Encana owns 108.5 cubic feet per second of the 118.5 cubic feet per second originally decreed to the Pumping Pipeline on September 5, 1952 in Civil Action No. 4004, Garfield County District Court. A flow rate of one cubic foot per second is equivalent to approximately 449 gallons per minute. Therefore, Encana has the right to divert its Pumping Pipeline water right from the Colorado River at a flow rate of approximately 48,716.5 gallons per minute (108.5 cubic feet per second X 449). 1 understand that Encana's proposed natural gas pipelines described as follows require the specified volumes of water to complete the hydrostatic testing of those pipelines: (1) East Dry Hollow Phase 1 Addition Pipeline -- 386,060 gallons; (2) Hunter Mesa to Pumba Pipeline — 320,000 gallons; and (3) High Mesa Discharge Pipeline — 246,000 gallons. In my opinion, Encana's Pumping Pipeline water right decreed in for diversion from the Colorado River in the amount of 108.5 cubic feet per second can legally and physically provide the volumes of water required for hydrostatically testing the above-described natural gas pipelines. MOSES, WITTEMYER, HARRISON AND WOODRUFF, P.C. Christopher Durrant October 13, 2010 Page 2 Please feel free to contact me if you have any questions or need any additional information. Sincerely yours, MOSES, WITTEMYER, HARRISON AND WOODRUFF, P.C. jrcl• .7 ¢--- Richard J. Mchren RJMljab Reception Detail Garfield County Clerk and Recorder Reception information A,ssessorifreasurer Property Search [ As snr Subset Query 1 Assessor Sales Search Clerk & Recorder Reception Seareli Reception Number 655351 Rook 1602 Page 357 I 319 QUIT CLT DEED Page I of Recording Date: 7/2/2004 OWNER/SU LER Recording Time: 1 03: [4P 'UNION OIL CO OF CA Number of Pages: 10 Recording Fec:5 1.00 Documentary Fee: 110.1y BUYER/SECOND PARTY TOM BROWN. INC Notary Fee: (&1.00) i Document Date:16/1. I/2004 Remarks: [(WATER Mill S) Related Documents z Reception Number Book Page 655351 1 1602 357 Top of Page Assessor Database Search Options 1 Treasurer Database Search Options Clerk & Recorder Database Search Options Garfield. County r Eane Page Tlx: Garfield County Clerk and Recorder's Office makes every effort to collect and maintain accurate data. I lowever, Good Turas Sttflvarn and the Garfield County Clerk and Recotder`s Office are unable to warrant any of the information herein contained. C +wright C 2005 Good Tums Software. Alt Rights Reserved. ease & Web Design by Cloud Turns Sollwtare. htTp,'1lw-ww.garcoact coraJclerk! ecept€on.asp?ReceptionNduaber=655351 03/31/2008 AFTER RECORDING, RETURN TO: ErCarta OiL & Gas (USA) Inc.. 95017th Street, Suite 2600 Denver, Colorado 80202 Attention: Mae Blics-zner, Esq. QUIT CLAIM DEED (Water Rights) Pik VPC' ICON OIL COMPANY OF CALIFORNIA, a California corporation "Granrtor"), with an address of 376 South Valencia Avenue, Brea, California 92823, for the consideration of Ten Dollars ($10.00) and other good and valuable consideration, hereby sells and quitclaims to TOM BROW . INC., a Delaware corporation f Grantee"j, with ari address of 55517t t Street, Suite 1850, Denver, Colorado 80202, all of Grantor's right, title and interest, if any, in and to the following: The nater and water rights, ditch and ditch eights, reservoirs and reservoir rights, wells and groundwater rights, whether adjudicated or uot, consents to the withdrawalof nontributary groundwater, and all ditches, pipelines, storage tanks, reservoirs, wells and relaid st lie ores, equiprraeat and facilities appurtenant to or used in connection With the Real Estate conveyed pursuant to a special warranty deed from Grantor to Grantee of the same date as this quit claire. deed, which Real Estate includes 59 parc=els tying in die following sections: Sections 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32.3.3, 34, 35 anti• }6, all in Township 4 South, Range 95 West ofthe 6 P.ML, Garfield County, Colorado; Sections 4; 15, 16, 17, 19, 20, 21, 22, 27, 28, 29, 30, 31, 32, 33 and 34, all in Township 5 South, Range 95 West ofthe 64' P.M., Craifield. County, Colorado; Sections 22, 23, 24, 25, 26, 27, 28, 33, 34., 35 and 36, ail in Township 4 South, Range 96 West of the 6'111 P.M.. Garfield County, Colorado; Sections 2, 3, 4, 5, 8, 9, 10, 11, f 4, 15, 16, 17, 21, 22, 23, 24, 25, 26, 27, 28, 33, 34, 35 and 36, all in Totwnship 5 South, Range 96 West of the 6'1' PM, Garfield. Cotnity, Colorado; Section L, 2, 3, 4, 9, 10, 15, L. 21, 22, 27 and 28, all in Township 6 South, Range 96 lest of the 64' P.M., Garfield C5uinty, Colerado. The water rights conveyed therein include, without limitation, those certain conditional aid absolute water rients lasted an Exhibit A attached hereto_ This conveyance is subject to the debts and interests of American Soda, [LP and its successors under certain instruments of record including without limitation (1) the Water Rights and dater Facilities Operations and Maintenance Agreement dated as of May II, I999 and recorded May 12, t999 in Book 1129 at Page 216 of the Garfield County, Colorado real Lrroperty records; (2) the Utility Easements Aerement dated as of May 11, 1999 and recorded May 12, 195x3 in Beok H29 at Page 1.l7 of the Gaxfreld County. Colorado renal property records., and (3) the Water Structures License Agreement dated as of May 11, 1999 and recorded- May 12, 1999 in Book 1129 a Paw 212 of the Garfield County, Colorado real property records. Executed June / 1 , 2004_ STATE OP COLORADO 3 ) CITY AND COUNTY OF DENVER) SS ICON OIL COMPANYOF CALIFORNIA, a California corporation By -Brian 1. Ke y, Attorney'ifin-Fact The foregoing instrument s s acknowledged before- ante this- r day of Jane, 2004 by Brian J. Kelly as Attorney -in -Fact for Union Oil Company of California, a California corporation. Witness d and official seal.. fir Notary Public ktYGantsicaFS —� .9 NiNittl319V AO ANYal402'Ui Wr.1114i1 JO II l fl 1111,VA1 ' �. NAME Figillg 4.413 Sprlt,y. Iribulury to Sc1iUHo Csi4.i... LI' tbuLlr7 ti: d'11I J14 puri, 5.ti iho ae1!u;p kr1,'1: A1'1'10:31.11.IA1iQN i7t"CF 1 L'i t u1191[6 MJ 1) Al • 'NON 17�st ( i•:[tt7Ft1'I.I Ns) ' S<It,,lts Srri:ty Nu.:, 05/1 iii 917 $hl: W }-11 . .. Saus �l!ti&}t r.u.: 8,477 Spring. ;ritwlary ti W:.1 k',4k ui' iears:iuil. 140V 754 Crc, . 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' 6 -iii 3 Ruli4rl Gulch, Iribuuiry,u rranlea Gulch, ;riburary io I'iachuru Crd tk, tri1ui ey i0 :ha { ulcer:Ali River tilr2 :14s l ll];Ixf l695 11;C.V.11.1 ••- !'+rkhuryi Lats;It Spring No. ? 0-033 Ittrl:Ian Gitklt, Iriburary t9 rtanlae r3utalt, trio:ar" Cd Nutt 4lo iLisirs t:a itsc f .Jtlaestdt= ICivi olr?V:se?I IOf1211496 95C.V44.i :}. 170r' S+nrirlb , 0.097 bi:tibu;sry to irtr►I I°urk I'aras:hau: lrara 1(iui, - s Ci , Irilu,ary it i'Ah7drr,:Ct trok, :ribulav iA tits ('.tlura4tl f1fver 07f311t 93$ Mil SfI9U6 I]CW UJ I dL 41. uronxy SIrri:ii CA r,•01 Grassy s,7vt.hr trlbur,cry Id CiAt kufk i':it4. Qil Craeli, itIbu;ix; su Pirarvliuru errauk- Irils rJry rn1,:eCvtom ifa 1_1....,_,„,,......___........._____ r L 1 ;,2.311922 ;Ik. 1 S'141Y4 4ai''00:G4 HAM' SNI.14 tJnnultli:a Kulotr, rrlburitr, ria Vu0,.r4 CrEd=;IS, s+ihuiary id kaki P,c4.1t l'arus:ii:rt¢ S:rc,,A orifi:rsary to Parzshv:;i Crack, Erlqu;nry 10 Ch4 r'.ilokiudu Rltise 4.13 Ili 4K41 _• li)rl .t( YiL:11'I4•I -.. -I Z. }'>trisrlilieaC:r4v1: Reservoir _ I3,I2P.S ar I6,hdi6,S A1' (':) P4 NOLIL1z L.r.es: Jt ra uh:r3Jo- Rhre I:'•Ii11966 _ 074b11971 1V•.92 , . t,Li-I arm, Op t'rLiLAC.f,[J rF r•RISK i]ii:tlrIAOF= AYr.nbul r:Arnftu al 0'1(46 Flow; i6 ODS 10.1 '~•suwdc: -0- P..« 21.1.5 AP A•5 i•7ye Gut ! A-6 1-4.1 FAL lil.Pil:MiVdt2 b1iAT' AGT`704.PSC"G:. AtkiiVnT I 540ihik'E: APt'1wPi(,A'i'14n DAV: AI3i(mR A— l; isl: "C:1, j P4iIl ttl'f1' 'l'ItIN IL,N1.1 PRI. ij If W..: t'r�:I C.,.,+,2s I"21te.111E.t:hil ii2sisru.nutart i [05}f 18-4 it silr L Y... :'i]'1 i5G 023 E I?Ittl IL I . _ e 1 st 11+ f l r Al. u F' RIFLE L' kli.l? K Li K.i I NAC L: okiiigig tircMs 'lo+v: iY .10 iL E I+IC:FiANCL1 C-RL'EiK IsliAINEACiii St:[ruls 51:1Irlb N0... C..02 Sptirri, u4hus7ory W L.at I G.fk Slsswlart 4i01:ir Irils>zleY Su Yres•1net I;fl C}[ ]W!]'id OM i 1:9117 g6C:W ]4G SIuf?.3lu•tlrs; Alt:. i [3.631 01.033 Sptl[Is;, tcibututy Iv Mi[ftlly f'urk Slot c'luui Irfhuli.f -v CFI 4t.Qartce Crux z Sptil:g, trit:utary 0a- Alco rthy (10441, i!ilea to PWlii LA t+st¢E; Ii0: t%4 S IF r _ ,. _. 10,119rl9EE 03=117Sii3? r _ 03!1 I115td7 341211'3:1 _—_T----.--__ W 3 .1 —1- -.- ��•'. _ NI0..401.y Sp:ui;1 f'ii3. 2 416ra q Spni,;; fin, a C: 0.033 C.111 — 0.431 j[ [ jj I Spfias, tribuirry W 1r1.Cashythil;:it, friiiwa€g la Plcraagc Crc:tli Spring. ifibu[aty[a Eati Falk Stcry4ulch, fr{iiuiuri_ 10 s"icearr"u 4:t0ck :jlriiikl, tribuwr :a Wail a:1MA NICCa=tir en s I+, trtlw;rcv so Pis:aaiKx {'tvuk i+3:'t 9iIyiE IU!EG$ISIH& 10101.1i1144 013+`1 li lliS,, 0311111318? ___ __ _µ_ LT VI I1017 ni::1V;?3 litc.W.14 $M1C'w3a . M SC,sr Spring No.2 — - i_ --------- f+lCur:li; .6prms Hu, 3 _ 1 7. E's0 :iP(L:ss itu. f - 17.1.:1 515{4k$. ititil;Lety s fri i0r11-,lt7.. 1.3.::41[. ttll1taty to Ptk:4pnvU;_ecilA iulriiivY4 0Srl 002!01 se4.S43st.i 1. t'.ALth Sorilslj Nis, I -- - `.. .. - ril iiil 5rri0g, tnbismy t0 I.1.Gsf[Ety (.101.11, __ ilv]:/IYX@ _- 03'1 €719217 Y?Ic.'1Y32 .•• l Y CIX *InP:Ijj NC I �� 1;1-(12 SNErijs, trI117i:Wy 0 Wex: Eiraikui, C`41Y C2ur1 tr;twf. r+ IR 1X211 ti31• tSEiIO71i'NEg [f;r1410x= k5i:14333 A-6 It _ 1.1. Iu. 1.1A hi AMOUNT ` Si7UHt=t ANPROi'IktA'I'ii7N 13A1 ii rS1M1MICA• VON f#A 1'G t.',A 1:I:ll. 1411.10itl'FY No. i,..:..- hpiti,iy tial. t 0,433 SFlr6M1R, lrtiNtuty 10 'got ilri1ri.lt Cow s�irtur • s,s I'Icu+ri.-3C:euk Iprii' . irihaR.Y to M:;C,rslly liuiCii, 1r111ut•t to l'iseu.tc,; Crc-ol, 1+1707t1 HO :U70951 it&1i OM I11y37 sMi:*i) 4 ... M.-I:Aril*, S{^rinF N. I u,vi 0535:'t98: yl,C w3a5 -- wta:y 4p-ill; Na. 3 0.1!31 IprIns, isibt:itgy to East Ntit Siory Gul:il, lribulury Ies SL.:wu l G:tklt; lribestary vi i'IccAii' Crva 1tit10.01 rs7 l 163: ihS'} 7(;1yt03 1). . ...y...,.a.� 4. to Sreaart *jog tt'u. 2 a 6.437 Sprlug, ttlbu:o-ry to Cas? Fork Stewart {"eu101, trtBlatary t8 SlcWarl t7ukli, 114th ry ,0 F'iea44uu 3:�a�r�t - JULIO!' Os') i 1 rti'1;',4ag t1CW146 ' --- _ Ai,ettiurlSpilnk; Nu. 11A 0,433 aptiii6, tritn:iory is Fag Puck Si4wArt. [iul.lt, ititn.l.ry I:7 Ntariart C1uICh, tribuiery ta1+it sx;r:reCk I1411i?'194.? 11411111584 8".'WJt}7 ,.. _ tiiswr %piU,;3 N3. 1 D.031 i}rJ ipy.,t`I�u; ry to tibia+ [:rack; :etlartliry i.. i711W Cr. s:k.....,11,fFu�: .: 6fl.�ft cif - 117i6?i1$' I l.t} 14iiv «7i2W.108 at?t1'1'tY1,a1. 01' 141l'i..AN( l:iiLLF: 1itiA,NAti : AlUilLtg U:rrtii Flow: 0 .0oa QI? WY11 1':11 Al. 1..q.-j 1C11011. t:4-:11.1'ANY O1° CAi,i1g.:,KNIA WAl'i-1A N1Cil i15; /04,011,0 t'bmliliiiegil ,1)q l Flew 23.371 ca 117.87 thi Si.rag: 4- 14,130,5 AF A-7 4- Irl A.'1YCFlC.Vi gir PAGE 1 Vie First State I, HARRIET SMTTM WINDSOR, SECRETARY OF ST'AT'E OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHER IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF MERGER, WHICH MERGES: "TBI PIPELINE COMPANY", A DELAWARE CORPORATION, "LI'$I WEST VIRGINIA, INC.", A DELAWARE CORPORATION, "TOM BROWN, INC.", A DELAWARE CORPORATION, WITH AND INTO " E:NCANA OIL & GAS (USA) INC . " UNDER THE NAME OF "ENCANA OIL & GAS (USA) INC.", A CORPORATION ORGANIZED AND EXISTING UNDER TEE LAWS OF THE STATE OF DELAWARE, AS RECEIVED AND FILED IN THIS OFFICE THE TWENTY --SECOND DAY OF DECEMBER, A.D. 2004, AT 6:15 O'CLOCK P.M_ AND r DO HEREFY FURTHER CERTIFY TET THE EFFECTIVE DATE OF THE AFORESAID CERTIFICATE OF MERGER IS THE FIRST DAY OF JANUARY, A_D_ 2005_ A FILED COPY OF THIS CERTIFICATE RAS BEEN FORWARDED TO THE NEW CASTLE COUNTY RECORDER OF DEEDS. 2137995 8100M j Harriet Smith Windsor, Secretary of State AMIEN fICATION : .3584585 040934710 DATE: I2-29-04 EXHIBIT B DEG -22-2004 1,17,•D 04;12 PH FAX NO, 3038322366 P 03 State of Delaware Secretary- of Stag. VivisiOD of Corp antlans t tiveire.d 04:15 114 12/22/2004 FILED 06:15 141 12/22/2004 SRV 040934710 - 2137895 P1ZE STATE OF DELAWARE CERTFFICATE OF MERGER Ok• DOMESTIC CORFORATfOi`1S Pursuant to Title 8, Section 251() of the Delaware General Corporation Law, the undersigned corporation executed the following Certificate of Merger: FIRST: The name of the surviving corporation is EnCarua Oil & Gas (11SA) Inc., and the names and jurisdictions of the corporations being merged into this surviving corporation are as follows: Nam!: '" diction of Incorporation Tom Bro.Vrk, Inc. Delaware Corporation MI Pipeline Company Delaware corporation TBI West Virginia, Inc. Delaware colporation SECOND: The Agreement and Plan of Merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations. THIRD: The name of the surviving corporation is Eneana C]iI' & Gas t SA) Fnc., a • Delaware corporation. FOURTH: The Certificate of Incorporation of the surviving corporation shall be its Certificate of Incorporation. f 1FIN Tho merger is to become effective on Ian tiny 1, 2005. SIXTH; The Agreement and Ilan of Merger is on file at 95.0 17't` Steel, Suite 2600, Denver, Colorado 80202, the place 0f bu.giness of the sruviving corporation. SEVENTH: A copy of the Agreement and Plan of Merger will be funrished by the surviving carpu:atiort on request, without Cosi, to any stockholder of the constituent corporations. IN WITNESS WHEREOF, said surviving corpotalion has caused this certificate to be signed by an authorized officer, the 17th day of December, A.D., 2004. iir� 1trs tr, r.. n 1. ywrn �ra..r1:Yn vi►, cc trn.� t.ciin7 ur%.. M A. Viviano, Secretary Q:keoCana_h2$26,206-t Corporate #wrgan;tatIP.okenja.'i Fikbtig:osiawaroLartMer=n nFkarps.dec