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HomeMy WebLinkAbout03.0 Correspondence 1999TIMOTHY McFLYNN * MARTHA C. PICKETT TIMOTHY E. WHITSITT KARIN L. GUSTAFSON * ERIC J. GROSS ** * also admitted in California * * also admitted in Massachusetts • Aspen office THE BENEDICT BUILDING 1280 UTE AVENUE, SUITE ASPEN CO 81611 td 970 925 2211 fax 970 925 2442 email mpw@aspenlaw.com . Snou+mass Village office ANDERSON RANCH 5131 OWL CREEK ROAD POST OFFICE BOX 6157 SNOWMASS VILLAGE CO 81615 td 970 923 2211 fax 970 923 0760 email mpws@snowmasslaw.com . Carbondale office 580 MAIN STREET, SUITE 210 CARBONDALE CO 81623 tel 970 963 6666 fax 970 963 6667 email mpwc4cdalelaw.com MCFLYNN PICKETT & WHITSITT Lawyrrs . A Profes=sional (corporation October 26, 1999 Mark Bean, Garfield County Planning Director Garfield County Courthouse 109 8th St. Glenwood Springs, Colorado 81601 RE: Intermountain Resources, LLC -- Special Use Permit for Garfield County Road 317 Dear Mark: Thanks for taking the time yesterday to discuss the captioned matter with me over the telephone. As I informed you at that time my client in this matter Kathy Honea is the current owner of that property at the end of County Road 317 which was formerly owned by Mike Bishop. She and I were unaware of development plans by Intermountain and of the entire permit processing proceeding, both at the County and Forest Service, until last August when we observed the work being undertaken on the road. We are now in the process of catching up with the current status on those permits and also attempting to negotiate with Intermountain as to its access across Ms. Honea's property. This correspondence will serve to inform you that at this point in time Ms. Honea does indeed contest Intermountain's right of access across her private property for the purposes of commercial development upon its privately held lands in Teepee Park. That is a matter which is the subject of current negotiations between us and Intermountain Resources. I have taken the liberty of enclosing for your information copies of correspondence which was recently delivered to Intermountain and to the Forest Service setting out our position as to the access issue across Ms. Honea's lands. Please keep us informed as to the status of the issuance of a permit for Road 317 as Ms. Honea is very deeply interested in this matter. TEW/etk cc: Kathy Honea Enclosure Very t AA, ours, McFL , ' ICKE T 411 By: Orli— a i AIRED Timoth E 11 ;�tt TSITT, P.0 RECEIVED OCT 2 , 1999 I IM( .11 I1' M( 111"NN t`LU:11 IA C. I'I(:KI:.1I 1 51 O 11 I v 1':. \'71 111 611 1' KARIN 1.. r.2ISTAIS( IN * ERIC I. (:12(155 • .11914.1•616-.1 IU .,11110/ 111,1 411:11.nlndltld in 51.61.611•9 THE Iii:N?[I )1(: I ISUILDING 1 280 111E AVI:NLII., 52111: 1 ASPEN CO 1)1(11 0.4 970 72.5 2211 (,a 070'125 2412 10,,111 rnpw'11a<pcnlaw.cum . Soanrmass 1',l/age ANDERSON RANCII 5131 O'S'I. (Rl:IIK ROAD ('UST OI0) 1: ISOX 6157 SNO\('LL\SS VILLAGE CUA 1615 1,1 970 '123 2211 fax 970 923 0760 nmol 0,)1,000 nuwmas<law.cnm • ( a1I'o,J•dr ollirr 580 MAIN S IZELI, 5l Illi:210 C:ARBONDAI.Ii CO 81623 0,1 970 063 6666 fax 970 963 6667 rmn11 n)pm.01(110lclasstcon) I.,,,,,,S epternber,12;11r1,999, Mr. Chris Meyers Intermountain Resources, Inc. P.O. Box 670 Montrose, CO 81402 Re: Kathy Ilonea property near Rifle, Colorado H.E,S No. 309, Section 24-T7S-R94W Dear Mr. Meyers: FILE COPY I have been given your name by my client, Kathy Honea, who is the owner of some ranch property South of Rifle. Colorado, which you have indicated a desire to utilize for the purposes ofa private logging road. At this point in time, I am unfortunately without a great deal of information or documentation as to this matter, but Ms. Honea has requested that I become involved in this negotiation. I am informed that your company is in the process of making improvements to Garfield County Road 317 up to its termination at her property line. I am further informed that you have confirmed to Ms. Ilonea that your company does not intend to perforin any road improvements upon her property until after you have had an opportunity to meet with her. I must take this opportunity to emphasize that at this time, it does not appear to me that you currently have any right to utilize her property for your purposes at all, thus any activity on that property without her specific prior consent will be considered a trespass. This is not intended to indicate an unwillingness by Ms. Honea to work with you towards an acceptable access agreement, only to put you on notice that you are not to move on to her land in the absence of such an agreement. Please feel free to give me a call should you have any questions. Sincerely, McFLY By: TEW:etk cc: Kathy Honea White River Forest, Rifle District honea\Intermountainitr N PICKETT & WHITSITT, P.C. Cin othE. Whitsitt 111' 1( )111V 1\11 111 Tit: n!.\11111A t . 19( l:I I 11(1/ i 1111' 1 . 771111'd II ,77,-.1,\ ';r 4,2 1 Ill( I, 1.1(7 . (•.n'ib, r.; o,-0 'n; 2211 1.,. ''71)'1271/,7(4) nl n 7/1. '.nmcn,.n.la,c unn I nmyrrt • i1 I'rolr,vou.17 ("orl,ornlinn September 3, 1999 Mr Christopher Meyers Intermountain Resources, LLC P.O. Box 670 Montrose, CO 81402 Re: Kathy Ilonea Dear Mr. Meyers: FILE COPv Thank you for meeting with Kathy and I on her property near Rifle this morning. I believe we were able to make some progress towards settling matters involving the access you want. I also want to thank you for your consent to hold off on improvements work on this access on her land until she returns to Colorado around the first of October. We will look forward to speaking further with you at that time. if you have any questions in the interim, please don't hesitate to give me a call. TEW:etk cc: Kathy Flonea honca1CM2hr Sincerely McFLY N ICKETT & By: TIMOII IY MCFLYNN • MAR II IA C. plcKETr IIMOII IY E. WILDSIIT KAIRIN I.. GLISTAFSON • ERIC J. GROSS •• • .dso mbnilled in California • • also admitted in Alassnclnrarlls ASpnr ofli<r II II: BENII)ICT BUR DING 1280 UTI: AVENUE, SUI FE 1 ASPEN CO 81611 Id 970 925 2211 f rx 970 925 2442 enrml nspw(''aspenlaw.com • Snonvuass Village n(ii<e ANDERSON RANCI 1 5131 OWL CREEK ROAD POST 01FICE 11OX 6157 SNOWMASS VILI AGE CO 81615 Id 970 923 2211 fax 970 923 0760 mad mpws(4'snownsasslaw.com o/fiu 580 MAIN Sl REEL, SUITE 210 CARIIONI)ALE CO 81623 Id 970 963 6666 foil 970 963 6667 on.ril nspwc@cdalclaw.com t c1LYNN-PtckhTT & WNt 'stt Lawyers • A Professional Corporalior. October 15, 1999 Gary Osier U.S. Forest Service, Rifle District 0094 County Road 244 Rifle, CO 81650 FILE COPY Re: Intermountain Resources Application for Special Use Permit, Forest Service Road 824, Beaver Creek Dear Mr. Osier: I have spoken with you over the telephone several weeks ago in this matter. I have also stopped into the Rifle District Office, although you were not in at the time I called. You have also been included by copy in correspondence to Intermountain Resources with respect to their use of my client's lands for their propsed logging operation along Forest Service Road 824. In all of these various contacts, I have requested that I be provided all or as much of the file in the referenced Special Use Permit file as is publicly available. To date I have had no response from you or anyone else at the Forest Service. I would greatly appreciate it if you would give me a call and let me know when the file will be available for my inspection. We are under a severe time constraint in dealing with Intermountain Resources, but are unable to go forward until we can understand what they have proposed and what they are going to be granted by the Forest Service. Given that your own access crosses my client's lands, which access is expressly revocable if exceeded, I would think that it would be in your best interests to cooperate with our inquiries. TEW:etk D:\data\honea\USFS Itr Very Truly Yours, McFL PIC r TT & WHIT ,1TT, P.C. I10,8r111, hl, II] NNJ N \1:11 1.\ (. I'I( -I.l 11 1 1Nul 1 11 1. 1\'l 11 1',1 1 I I;:1RIN 1 . (.1 I'IAl'.11N * I III( I. -.111 )SS 1 ,1,•,16,1 1,1 1 .1141•,111.1 ,u „linlh,lm �Id.,m111..11 1111,66 , u,. , .AtJ11? I (I rN 1:,AN( I 1 s 1 11 1 1\1•1. ( 121 1 I: 12( 1A1 ) 11 NI'(11I1(I, lu)X (.1;7 CN( \\ 'NIA VII IA(.I. (r) 81(15 61 9710 92 1 7)11 1, 070 .721 07(1) . 1.111 1)1pw•.,•,nr,wn..cdaw x,111 I,nn prry . A I'l olr„iondl (n11vn,1(nu October 23, 1999 J.D. Snodgrass, Esq. Williams, Turner & Holmes, P.C. P.O. Box 338 Grand Junction, CO 81502 RE: Intermountain Resources/Kathy llonea Dear Mr. Snodgrass: mnpv I appreciate your call to me yesterday morning to advise me regarding your client's plans to commence work on Forest Service Road 824 on Beaver Creek near Rulison. As I stated to you at that time, if our understanding is correct that this work will be confined to road improvements solely upon Forest Service lands to the South of Ms. Honea's ranch cattle guard, then I don't see that they would precipitate any immediate legal action by us on Ms. Honea's behalf. If my client directs me otherwise, I will certainly return the courtesy by so informing you immediately, prior to any filing. It has been somewhat difficult to obtain the rather extensive documentation from the Forest Service with respect to this application; but now that I have it in hand, I would expect to be able to review it and the Garfield County materials over the course of the next few days. At that point I believe that I will be in a position to set forth a more articulate position on behalf of my client. While there is certainly no guarantee of success, it is our hope that this may lead us to some sort of mutually acceptable resolution to our current dispute regarding Intermountain's proposed use of the Forest Service easement across Ms. I lonea's lands. I believe that I fully understand your position at this time that this easement constitutes a public road, giving your client essentially unfettered rights of use across it. On behalf of Ms. Ilonea, I must once again respectfully disagree. We are currently convinced that this is in fact an easement limited in intent and scope to public access to Forest Service lands. It appears clear to me that the Forest Service has purported to give you no further or additional rights or permission across this easement. Further, I understand that your client has plans for road work and improvement upon this easement. Whatever else may or may not be granted in respect to access rights by that easement, it must be absolutely clear that there is an extremely narrow grant, made to the Forest Service exclusively, to improve that easement within two years of the grant. Your J.D. Snodgrass, Esq. October 23, 1999 Page 2 of 2 client's proposed additional work some twenty years later is quite simply not included within the rights conveyed. For this reason, any improvement work commenced by Intermountain upon the easement across Ms. Ilonea's ranch will be considered a violation of the express terms of the easement and grounds for its revocation. As I have stated to you in the past, Intermountain's private logging program will have a significant negative impact on the commercial uses and income which Ms. Ilonea has enjoyed on her property. While Ms. Honea would greatly prefer to preclude your client's use of this easement for its private property development purposes altogether; she is not at this time foreclosing the possibility that an agreement for access might be achieved through our negotiation. I am hopeful that we might succeed in that effort as well. 1 will be in contact with you in the very near future with respect to these issues. Very truly yours, McFLY By: Timothy i. hi sitt ICKE1'T & WI IITSITT, P.0 TEW/etk cc: Kathy Honea Gary Osier, USPS honeaUDSltr GARFIELD COUNTY Building and Planning Department November 15, 1999 Chris Meyers Intermountain Resources, Inc. P.O. Box 670 Montrose, CO 81402 RE: Beaver Creek Special Use Permit Dear Mr. Meyers: It has been a little while since you and I talked about the status of the Beaver Creek Special Use Permit for the logging activity in that area. There are still some issues that need to be resolved before the actual Special Use Permit can be issued. We had talked about the security for County Road 320 on the phone earlier this year. At that time you had indicated that your company would like to place a form of security for the road improvements that I was unfamiliar. I suggested that you or someone from your company send a copy of the proposed form of security to Don DeFord, Garfield County Attorney. He has not seen anything from your company requesting a review of a document. In September, you received a letter from Timothy Whitsitt on behalf of Kathy Honea, challenging the right of your company to cross Ms. Honea's property. Condition No. 6 of the resolution of approval notes that the County approved the application based upon the representations of the Forest Supervisor of the White River National Forest, but it was the applicant's responsibility "to obtain a declaration of status of the road from a court with the appropriate jurisdiction." There is no such document in the file for this project. Prior to issuing a permit, it will be necessary to obtain the court declaration noted in the condition of approval. If you have any questions about the issues noted in this letter, feel free to call or write to this office at your convenience. Sincerely, Mark L. ean, Director Building & Planning Department xc: Don DeFord Timothy Whitsitt 109 8th Street, Suite 303 945-8212/fax 945-7785 Glenwood Springs, Colorado 81601 United States Forest Rocky P.O. Box 25127 Department of Service Mountain Lakewood, CO 80225-0127 Agriculture Region Delivery: 740 Simms St. Golden, CO 80401 Voice: 303-275-5350 TDD: 303-275-5367 File Code: 5460 Date: J. D. SNODGRASS, ESQ. WILLIAMS, TURNER & HOLMES, P. C. P. O. BOX 338 GRAND JUNCTION, CO 81502-0338 Dear Mr. Snodgrass: We have been following closely the conversations between yourself and Mr. Timothy Whitsitt, attorney for Ms. Honea. Ms. Honea is evidently a successor in interest to Mr. Tom Von Dette, the original grantor of a perpetual easement for a perpetual public road across Homestead Entry Survey 309. Mr. Von Dette originally granted the easement to the Colorado Division of Wild- life. The Colorado Division of Wildlife assigned the interest they held to The United States, act- ing by and through the USDA Forest Service. Assuming that the grantor had valid title to the land including the Easement and the legal ability to grant this Easement and assuming that item 2 of the Easement regarding construction of the road and posting have been complied with so that the Easement did not revert back to the grantor, the easement, by its explicit terms is for unrestricted public use. There is no language in the Easement limiting the grant to public use for recreation or access, for example. Public use covers a wide variety of common usage, including usage by logging trucks. We consulted with our attorneys in the Office of the General Counsel. They tell us that the lan- guage of the Easement is unambiguous. They have verified that the Final Title Opinion for ac- quisition of the Easement by the United States from the Colorado Division of Wildlife supports the assumption that Mr. Von Dette did, in fact, have valid title to the property and had sufficient interest to grant the easement. Section 6 of the easement states that [t]his grant shall be given a reasonable construction so that the intention of the parties to cover a usable right of public enjoy- ment on the Grantee is carried out. We are aware that Garfield County has imposed a requirement in their permitting process which requires some sort of legal interpretation by the courts that the Easement is available for use by logging traffic. We have notified Garfield County of our position in this. matter before. This is an unambiguous easement on its face. It would definitely complicate life if all legal documents were presumed invalid until declared valid by a court. We, of course would be willing to review any articulated explanation Garfield County may have about why they think the Easement is not available for the hauling of logs. .,a GT1 EL .D CO .'Y" PLANI 109 8Th1cS= s, <, GO �3i ,;1 GLENWOOD ,..., •.i, RECEIVED DEC 2 3 1999 Caring for the Land and Serving People Printed on Recycled Paper ir Our position is that the easement is valid and available for the hauling of logs across the Ease- ment. By copy of this letter we are again so notifying Garfield County. Please continue to work directly with District Ranger Dave Silvius at Rifle regarding your use of the easement. Sincerely, LOVA114,11C, LYLE LAVERTY Regional Forester cc: Mark L. Bean, Director Garfield County Building and Planning Department 109 8th Street, Suite 303 Glenwood Springs, CO 81601 Forest Supervisor, White River NF District Ranger, Rifle RD WO -Lands Ms. Helena Jones -Siddle, OGC 7079 't L'ASFt4ENT (:PA1711: is made 'r,r: ;,;c "IcaVontette hcrc- innt ac rofurrcd to rs "thio Grantor," ak the State o:: Co:o=ado • for the u_c and benefit o. the Capa_ti c:►•t of Natural Resource's. ^s• 11. �f a, •., _ �.� Ci; 4'TjO:,:r� , I�C2'4 ina�?;cr rE:�bi'rC:Ci to chi "the Grantee." s 1 v 0 r. i u ZTheo?ic:sic:g re_,ttaia cf fact are a material part of 00{� c thi.;t inatrtment: c .; 1 c I .. A. The Grantor is the owner of bend in the County of ;, V] Garfield, Stat_ of Colorado described as follows and her.ein- t n. Z_tez referred to as "the easement premises:" S Being a strip oc land 30 feet in width across n,E.S, _o1,11 30c3 of urstrfoye.3 section 24, Township 7 South, ° "./ Rance 94 '?,2st of. the Gth Principal `ie:•i:lien it Gar- field County, Colorado. Said easement being 7.4\1\ t 15 feet on each eide of the following de_c=ibed center) line. Beginning at a point on the 1-5 line of d o H.S.S. 309, from which point Corner vurber S of 7 3.7.S. 309 bears west 171.30 feet; thence along the a y arc cf a c::rve to the right having a radius cf 220.28 feet for 57.93 feet; thence south 14'01'15" wet. 30.11feet; :hence along the arc of a cur.'e to the lett baying a radinn of 290.50 fee: for 102.92 feet: thence south 6°45'05' oast 205.18 feet; t`le- Ce south 9'32.2.5" etst 1E:.44 fneI. ; thence south 7°42'53" tact 323.0:: feet: thence along the arc o; curve to the right havi;g a radius of 206,50 feet for 129.17 feet: thence south 17'55'11" we-st 68.41i fee_; thence Tlcn; the are of a curve to the left ht%,l :g a radius of 2136.50 fest ic: 51.17 Co •t: s•,uth 1'40'50" west 0 .04 feet; :decree south 1. 3C•'S start 120.70 frr•'_; thc'nce along the a'ro cf e et.r:e to he ritjht haying .D _edit:s of 20.50 feet for 67.67 feint:; thence scnh 11'53'10" west 109.5 tc t• thtnce a:cr.; t'.�' .. (��' ,. ..t.`�...f t,;� :�? In,ft '.tet., roc:5.ns cf .t .t. r• for 271.2: ._.:n; thence t'C'Itil 42`.e. .: ' ea;.. LG_ ... th,!n i :o:;n th tr..: of ct _•t:rt'C- to ::T_ ....`�'..f::- _ar._!'d o: :{((.'.50 Le. -:t for 12)...') t::fir.v..• =:._:.t_ 12°F -?'0" r.:11:.tfoet:CZ iCtn Tett o. -r, a po;.r.r on CL: h• . lin6 .. t:.. .c. �:.. . r! rc . . PO 39tid dd00 30N3QN3d3QNI 6SPIZEE9TE SE:ST L66T/80/0T aou. 4 p4 e 29_ i'nc Granter '.•ishes to grant all -the Grantee wishes to r2ct...c an easement for perpetual p -c road casement vuon, over, under, vnd across the easement premiss• . NOW THEREFOkE, in consideration of Ten and no/100 Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the following grants, agreements and covenants and restrictions are made: 1. GRAFT OF EASEm2NT: The Grantor hereby grants to the Grantee, h'.s succe}scrs and assigns, a perpetual easement for a perpetual public road easement upon, over, under, and across the easement premises. 2. WARRANTIES OF TITLE: Grantor warrants that he has good and indefeasible fee simple title to the easement premises. 3. RUNNING OF BENEFITS AND BURDENS: All provisions of this instrument, including the benefits and burdens, run with the land and are binding upcn and enure to the heirs, assigns, successors, tenants and personal representatives of the parties hereto. 4. ATTOR`:z 'S rZES: Either party may enforce this instrument by appropriate action and should he prevail in such litigation, he ah;111 recover as part of hir: costa a reasonable attorney's Pee. S. CO2:STR:CTIo.T. The rule of strict construction does not apply to this grant. This grant shall be given a reasonable constructirn so that the intention of the parties to confer a usable richt of public enjoyment on the Grantee is carried out. IN WITNESS %'Tru:?.c.oF the Grantor and the Grantee have hereunto set their hands this,'i'day L STATE OF Cc%r..cn.; .Cr ) r'cl:nty of ) 9s. GRANTOR Tor: Vcn :gotta The forr.; ?..!e; ... 2'7"93ir2_i.�S-, �sr we...l 4+ R�eerder _ r0.n498' 32. ( ... e'•;:.�; This PASEKEWT GRANT is rude between the State of Colorado • 'i_:_i.i..•r . . for the use and benefit of the Department of Natural Resources,. - -:.•.4 •"•':''' DIVISION OF WILDLIFE, hereinafter referred to as 'the Crantor,.`1 Rj�. ; .z.1-:...'4'.': and the United States of America. Department of Agriculture • , `:' Forest Service, hereinafter referred to is 'elle Grantee;' """:,:.;.' The following recitals of fwct ars a material part of this :_', �"} `� instrument: '• A. The Grantor is.the a.rner of the easement in the county ;':` ' or Garfield. State of Colorado described as follows and herein- ''-.-e• after referred to as the easement premises:. . Being a strip of Land 30 feet in width ac:'osa• S.E.S,� rV}'�• *309 of unsarveyed section 24. Tovesship 7 South. .. -•�^ Range 94 vest of the 6th Principal xeridian in Garfield • Count'y, Colorado. Said easement being 15 feet on each side of the following described center line_ Beginniaag at a point on the 1-5 line of S.L.S. 309, from which :- point Corner 1Ranber 5 of R.E.S. 309 bears vest 171.30 feet; thence along the arc of a curve to the right. having a radius of 220.38 feet for 57.93 feet; thence south 14.01'15' west 30.11 feet: thence along the are: of a curve to the left having a radius of 286.50 feet for 103.92 feet: thence south 6.46'05` east.205.18 feet;' thence south 9.32'29' east 184.44 feet; thence soot`s .7.42'5x' east 322.05 feet: thence along the arc of a curve to the right having a radius of 286.50 feet for 128.17 feet; thence so"- 17'55'11' •."st 68.48 feet: thence along the arc oe a curve to tho left:having a radius of 286.50 feet for 81.17 feet; thence south 1'40'50' • vest 82.84 feet: thence south 1°38'58'., east 120.70 feet: thence along the arc of a curve to the right having a radius of 286.50 feet for 67.67 feet: thence south 11'53.10' west 109.85 feet: thence along the arc of a curve to the left having a radius of 286.50 feet for 271.33 feet: -thence south 42.22'22' east 121.5; feet; thence along the arc of a curve to the right having a radius of 260.50 feet for 129.39 fret: thence south 1]'54'06' east 13.02 feet: thence along the arc 1 90 39tid of a curve to the left having a radius of 260.50 feet for 166.52 fest; thence south 50'32'35' east 61.29 fee: and endin; on a point on the 2-3 lin_ of Y.E.S. '.C9. At wh2ch end:nc point the Corner:;o. : 209 bear- north ...r, or leas. 213•:a feet ;l! -lining 1.6 db00 30N3GN3d3GNI 69121 EE91E SE:GT L661/00/01 • r;;...498 fICE 33 S. The Grantor wishes to grant and the gruntee wishes to receive an easement for perpetual public road easement upon. over, under. and across' the easement premises. Nur TBZREFORE. in consideration of Ten and NO/100 Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of whist. are hereby acknowledged, the following grants, agreements and covenants and restrictions are made:. 1. GAAS? 0? ZASZKENt: The Grantor hereby grants to the Grantee, his successors and assigns, a perpetual easement for • a perpetual public road easement upon, over..'uader,,and across. the .easement premises. 2. The Grantee shall construct and maintain a road upon said easement premises within two years from the data of this easement grant and upon construction of said road the Grantee .shall post it in conspicious places to the affect that the road is an access road to ?orest Service land and all properties • on both sides of the easement premises are private and no ' trespass is allowed. 3. If said condition and stipulations of this easement grant are not adhered to, it shall become null and void and shall revert to the Grantor. 76\ 4. )RART/LS OP TZTLZ: Grantor warrants that be has Il good and indefeasible fee simple title to the easement premises. • 3 J s 5. RO'NNTNG CT BENEFITS AND BURDENS: All provisions of • ': 3 ti this instrument. including the benefits - and burdens, run with 'jLi y -�. y v L0 39tid the lard and are binding upon and enure to the heirs. assigns. successors.'tsnants and personal representatives of the parties' hereto. 6. CJNSTRCCTIONz The rut• of strict construction dues rot apply to thin grant. This grant shall be given a reasonable .-rstruce:on sc that the :mention of the parties to cor.ver a zsabl^ right of pu.tlic enjoyrsnt on the Grantee is carried out. db00 30N3GN3d3GNI 6SOIZEE9TE SE:ST L661/00/01 • 7 • Ct^7:n45i? ?ACE .34 .. SPS wiTinSS MiEA.OP the Grantor and the Grantee have here- unto set .their hands this .1: _day of - ! f STATE OF COLORADO 80 39ad 1 XS STATE OF COLORADO Department of Natural Resources Division of Wildlife.' / R. GRIER Virector • The foregoing instrument vas acknowledged' before me this �"r day of 671e..v ,A.D., 2977 by 1- .e 1) %.-;.: t My commission expires . :Witness my hand and official seal. t r I� )% 47," Rotary Public J &100 30N3GN3d30NI 6SDTZEE9TE SE:ST L661/80/01 TIMOTHY McFLYNN * MARTHA C. PICKETT TIMOTHY E. WHITSITT KARIN L. GUSTAFSON * ERIC J. GROSS** *.also admitted in California ** also admitted in Alasmrhusruc • Aspa, office TILE BENEDICT BUILDING 1280 UTE AVENUE, SUITE 1 ASPEN CO 81611 td 970 925 2211 fax 970 925 2442 email mpw5'aspenlaw.com . Snon•mass Pillage office ANDERSON RANCI-I 5131 OWL CREEK ROAD !'OST OFFICE BOX 6157 SNOWMASS VILLAGE CO 81615 Id 970 923 221 1 rax 970 923 0760 r' a3 mpwsin'snowmasslaw.com • 1arbandnlcoffice 580 MAIN STREET, SUITE 210 CARBONDALE GO 81623 tel 970 963 6666 fax 970 963 6667 *waif mpwc("cdaIelaw,com MCFLYNN PICKETT & WHITSITT La n,y a,S epton3ber,a 2,<,1,99i 9, Mr. Chris Meyers Intermountain Resources, Inc. P.O. Box 670 Montrose, CO 81402 Re: Kathy Honea property near Rifle, Colorado H.E.S No. 309, Section 24-T7S-R94W Dear Mr. Meyers: I have been given your name by my client, Kathy Honea, who is the owner of some ranch property South of Rifle, Colorado, which you have indicated a desire to utilize for the purposes of a private logging road. At this point in time, I am unfortunately without a great deal of information or documentation as to this matter, but Ms. Honea has requested that I become involved in this negotiation. I am informed that your company is in the process of making improvements to Garfield County Road 317 up to its termination at her property line. I am further informed that you have confirmed to Ms. Honea that your company does not intend to perform any road improvements upon her property until after you have had an opportunity to meet with her. I must take this opportunity to emphasize that at this time, it does not appear to me that you currently have any right to utilize her property for your purposes at all, thus any activity on that property without her specific prior consent will be considered a trespass. This is not intended to indicate an unwillingness by Ms. Honea to work with you towards an acceptable access agreement, only to put you on notice that you are not to move on to her land in the absence of such an agreement. Please feel free to give me a call should you have any questions. Sincerely, McFLYN By: TEW:etk cc: Kathy Honea White River Forest, Rifle District honea\lntermountainitr PICKETT & WHITSITT, P.C. oth'' E. Whitsitt RECEIVED S RECEIVED F,r-iP 2 1999 BAIN, HUTZLEY AND LEVERICH REAL ESTATE COMPANY, LTD. 434 E. Cooper, Suite 202 970-925-5400 Aspen, Colorado 81611 FAX 970-920-4549 Tuesday, August 31, 1999 Mark Bean County Planner 109 8 Street, Suite 303 Glenwood Springs, CO 81601 Dear Mark: Please find enclosed the proposed road alignment to get County Road 317 out of the creek bottom. Please know that I am very willing to do my part as far as offering the land goes, to the County for construction of a better road in a better place. Please, I need your help to direct me as to what the next steps may be to make this work for all parties. Thanks in advance for your help. Sincerely, Chris Leverich CL:tsc CS 'S'EP 2 ES United States Department of Agriculture Mr. Chris Meyers Intermountain Ranches L.L.C. P.O. Box 670 Montrose, CO 81402 Forest White River Rifle Ranger District Service National 0094 County Road 244 Forest Rifle CO 81650 (970) 625-2371 TTY (970) 945-3255 FAX (970) 625-2532 Reply to: 2730 - Beaver Creek Date: August 6, 1999 Dear Mr. Meyers: In reviewing the City of Rifle's Watershed District Permit No. 1-97, I learned that Intermountain Ranches had transferred fee title ownership of the property to LeeLynn, Inc., and Wiley Moun- tain, Inc. Your attorney, Mr. J.D. Snodgrass was kind enough to supply the information support- ing this transfer. At this time the applicant of record with the Forest Service is Intermountain Ranches L.L.C. An easement may only be granted to the actual private landowner. If there is more than one pri- vate landowner, it is Forest Service policy that only one easement be granted. Some examples of how landowners in this area have dealt with this requirement are; forming Homeowners Associa- tions, developing a partnership amongst the landowners, or developing a formal agreement among the landowners appointing one entity to be in charge. I have enclosed an application for one of the Beaver Creek landowners to fill out. This will be to whom the easement is actually issued. Only the circled items will need to be addressed. Supple- mental information needed will be dependent upon what entity applies for the easement. I do have some of the supplemental information for LeeLynn Inc. and Wiley Mtn., Inc. Your at- torney has knowledge of what was sent to me. The application contains Block one and two, this is the applicant's name and who is designated to act as the authorized agent. This person will serve as the contact for the Forest Service. I would ask that you limit your designation of representatives to no more than one to three per- sons. In the past there has been some confusion about what has been provided to the applicant, the next step in the project, and what the applicant needs to provide. I believe this is due to the number of persons who have been involved in the project. I understand that as the phases of the project change, the main contact could change with their area of expertise. Perhaps designation of one representative per phase would be one method to work this out. One other item which should be addressed in the application in Block 7 are the trail rights-of- way Tucker and Frase, the former applicant, had identified as reciprocal to the right-of-way which would be granted by the Forest Service. The applicant should identify if they are willing to continue with the reciprocal rights-of-way so that the fee on the easement can be waived under 36 CFR 251.57(b)(5). I also wanted to take this opportunity to let you know that I had received the final road design from High Country Engineering and have forwarded them for review. As Cindy Hockelberg of Caring for the Land and Serving People Printed on Recycled Paper my staff has mentioned previously the engineering position on the White River N.F. is vacant, so the review will not be as timely as normal. If you have any questions please contact Cindy Hockelberg of my staff at (970) 625-2371. Thank you for your attention to these matters. Sincerely, *24 GEORGE V. FOL'Y R. Acting District Ranger Enclosure: Special Use Application cc: Garfield County Planning Dept.V City of Rifle fcc: J.D. Snodgrass GARFIELD COUNTY ROAD & BRIDGE Memo To: Mark Bean/Planning From: Tom Russell Date: August 23, 1999 Re: CR 317 / Intermountain Resources LLC. Mark, I have discussed the road improvements that will be performed by Intermountain Resources LLC on CR 317 with Christopher Meyers. On 8-12-99, Chris, Jake Mall and myself inspected the portion of CR 317 that needs repairs prior to log haul traffic. At that time, we all agreed that the road would require 6" of class "2" material and would need to be covered with 3" of 1 1/2" road base material. All drainage areas would be cleaned and re-established. If new culverts are needed, they will be installed by Intermountain Resources. Existing culverts looked good. The brush would be cleaned off of the 30' R.O.W. that exists on the road. All work would be performed and paid for by Intermountain Resources LLC. Intermountain Resources LLC. Is required to provide a hot mix asphalt surface 1 1/2 thick X 24',for approx. 20,000 Ln.Ft. from Tagenbaugh to the intersection of CR 317 & CR 320. This asphalt surface would consist of approx. 480,000 Sq.Ft. of asphalt and approx. 15,000 Sq.Ft. of shoulder and driveway material. The estimated cost for these materials would be $161,000.00 for asphalt and $10,000.00 for shoulder and driveway material. Please submit a check for $171,000.00 to Garfield County to cover the cost of the road improvement. These cost estimates are only estimates and do not reflect any cost difference in future material costs or inflation. Intermountain Resources LLC will be responsible for any cost difference that may be present at the time of the road improvement. Garfield County will perform the necessary road improvements at their discretion when they deem necessary. If you have any questions please call me at 945-6111. Thanks, Tom Russell • Page 1 BLM news BUREAU OF LAND MANAGEMENT GLENWOOD SPRINGS FIELD OFFICE 50629 HIGHWAY 6 & 2 PO BOX 1009 GLENWOOD SPRINGS, CO 81602 RP1111V113 AUG 24 1999 GAMED COUNTY COmEU$SipNERS Date: August 19, 1999 For Release: Immediately For Further Information Contact: Gary Osier (970) 625-2371 or Bob Elderkin (970) 947-2811 ELM RELEASES DECISION RECORD FOR BEAVER CREEK NATURAL GAS DRILLING PROJECT On Thursday, August 19, 1999, The Bureau of Land Management (BLM) released the Decision Record (DR) for the Beaver Creek Natural Gas Drilling Project. The decision follows a 15 day public review period for an Environmental Assessment (EA) prepared for the project The EA and DR address the comments, issues and concern of those involved in the EA, including the general public, state and local governments, and interest groups. The project involves the construction of up to 12 natural gas weEs on private and public Iands and the City of Rifle's watershed. Up to 6 wells are anticipated on Federal surface (BLM and U.S. Forest Service). The wells are proposed to be drilled over .s 5 year period, with one well likely to be drilled on public lands this fall. The project area lies approximately 6 miles southwest of the City of Rifle in the Beaver Creek drainage. The decision made by Mike Mottice, BLM Glenwood Springs Field Office Manager, is to approve the Proposed Action Altemative, with the mitigation measures described in the associated Plan of Development. The action is consistent with a permit issued by the City of Rifle. This effort culminates several years of concerted effort by oil and gas operators, the City of Rifle, local landowners, the Colorado OiI and Gas Commission and the federal agencies to provide a picture of what oil and gas development activities can be expected in the area over the next few years, while protecting water quality in the Beaver Creek Watershed. According to Mottice, the proposed action altemative "represents the most feasible alternative to facilitate natural gas development while providing a reasonable level of protection to surface and subsurface resources_" Mottice adds, "I am especially appreciative of the City of Rifle for working with the oil and gas operators to develop measures to protect the City's watershed while still permitting oil and gas development." In his decision, Mottice concludes that " all anticipated impacts associated with this project can be adequately mitigated with no significant adverse impacts to the natural or human environment". The BLM has mailed copies of the DR to interested individuals and organizations. Those individuals who would like a copy of the DR may call the BLM Glenwood Springs Office at (970) 947-2800 . U. S. Department of the Interior Bureau of Land Management Glenwood Springs Field Office DECISION RECORD EA NO. CO -078-99-069 STATE: Colorado COUNTY: Garfield ACTION: The Beaver Creek Natural Gas Drilling Project involves the drilling and development of up to 12 wells on. Federal lands leased to Barrett Resources Corporation (BRC) and Toni Brown, Inc. (TBI). Decision: My decision is to approve the Proposed Action Alternative for natural gas development with mitigation identified in Environmental Assessment (EA) No. CO -078-99-069. This EA does not specifically approve any well site locations. However, any Applications for Permit to Drill (APD) subsequently submitted for wells on BLM or U.S. Forest Service or federal mineral estate will be approved provided they are consistent with this EA and the necessary conditions of approval are attached. It is also my decision to except wells RU -I2-6 from the No Surface Occupancy (NSO) stipulation included in the affected lease based on consultation with the City of Rifle and their subsequent issuance of Watershed District Permits, Numbered 1-99 and 2-99. The Permits acknowledge that the "potential risk of injury to the City's waterworks and pollution to the City's water supply would be mitigated." By adopting the conditions outlined in the City of Rifle's Watershed District Permits as well as the mitigation measures and the Plan of Development (POD) described in the EA, the conditions for exception of the NSO stipulation (see page 5, section 13.1.1, EA) are met. This decision also confirms the BLM' s commitment to reducing direct impacts to high value wildlife habitat. Specific proposals for off-site habitat improvement projects will be developed at the APD approval stage. Rationale for the Decision: 1_ Approval will allow exploration and development of natural gas resources consistent with valid existing Leases. 2_ The Proposed Action Alternative will facilitate natural gas development in an orderly manner that provides for protection of the City of Rifle's watershed and acceptabl e protection of surface resources. 3. This alternative is also responsive to public concerns on public lands_ 4. All anticipated impacts associated with the project can be adequately mitigated with no significant adverse impacts occurring to the natural and human environment. Remarks: During the 15 day public review period for the EA, BLM received three comment letters regarding the analysis contained in the EA. Some comments related to issues such as water rights or water development projects that are outside the jurisdiction of the BLM. Only comments regarding issues for which BLM has jurisdiction are addressed here. 1. The City of Rifle asked that the Federal agencies add a provision to say "Any violation.of the conditions of any other such permit issued shall be deemed a violation of this Permit." The BLM and U.S. Forest Service will review and approve subsequent APDs and associated Surface Use Plans of Operation (SUPO) that are in compliance with the EA, the POD and the City of Rifle permits. BLM will consult with the City of Rifle regarding any violation of the BLM permit, which incorporates the conditions of the City of Rifle's permits. Accordingly, the requested stipulation is not necessary. In addition, the City of Rifle retains jurisdiction over the conditions described in their permits and would have appropriate authority to take action for any violations of their permits. 2_ One respondent felt that "the assessment should have been produced by an independent neutral company and not funded by the involved gas companies." Both BLM and the U.S. Forest Service retain full responsibility for this environmental assessment. Use of private contractors to prepare EAs for government use at the expense of the project proponent is common practice and results in significant savings to the U.S. taxpayer. It is the rosponsibi1ity of the agencies to ensure proper evaluation of potential environmental impacts of a proposal. Ultimately the responsible official makes the final determination and is responsible for the content and analysis of the EA. I have thoroughly reviewed the EA, and I am confident that the material presented is correct for this project. 3. One respondent felt that "the ultimate outcome of this assessment was predetermined.' This is true to a certain extent as stated in section 1.2 of the EA. The question is not if the drilling will be allowed (the right to drill was established when the parcel was leased), but where and how such drilling will be done. 4. One respondent felt that all downstream water users should have been noted of the proposed drilling operations. It is not a requirement that all Landowners and water users downstream of a proposed project be personally notified of a pending project_ By issuing news releases, contacting nearby landowners and involving known interested stakeholders, BLM hoped to inform and involve those most likely to have an interest in the project. In addition, the extensive deliberation of these issues by the City Council of the Town of Rifle provided additional opportunities for public information and involvement. In addition, since water quality was likely the major issue of any downstream water user for which BLM has jurisdiction, it was felt that by working with the City of Rifle on the water quality issues and protecting drinking water quality, that the interest of downstream water users would be adequately considered. 5. One respondent felt that the West Divide Project was not being adequately addressed. All reservations by the Bureau of Reclamation for the West Divide Project were made many yeas ago and have been recorded in the Master Tide Plats and the Land Status Records of the BLM and Forest Service. No reservations were made for any of the public lanes involved in this project, therefore no projects were anticipated by the Bureau of Reclamation for these specific lands. In addition, any future consideration of a project like the "West Divide Project" will require careful examination of the numerous surface uses occurring in the project area since the project was first identified, including oil and gas development, residential development, existing water rights and agricultural and commercial uses. 6. One respondent responded that he had not been contacted as to the siting, screening or access to wells RU #23-12, #24-I2, #34-12 and #44-12. The respondent is correct that he was not contacted regarding these specific locations because the operators have not reached that stage of development yet. The mentioned wells are scheduled for as early as the year 2002, contingent on previous drilling. At this time. the proposed locations represent the most likely well sites given the geology and surface and water quality concerns, but specific location plans will be developed later. The Plan of Development clearly states the procedure that will be followed and the items the respondent is concerned about will be addressed at the API? stage. These wells and there specific locations are subject to on -the -ground, site specific evaluations for compliance with the POD and the City of. Rifle permit. Surface owners will be invited to the on-site evaluations for specific wells and site specific concerns will be better evaluated at that time. 7. One respondent felt that the spacing would impact future development of the private land. This is correct; development of the mineral resources will affect the surface owners ability to develop the surface. As with all split estates, the surface owner is subservient to the mineral owner. Except in the case of split estate lands where the mineral rights are reserved to the U.S. Government, this issue is outside the jurisdiction of the BLM. During the APD stage, the BLM will try to work with the operator to find the best location that will serve all interests, including the surface owners. However, it must be remembered that mineral estate owner has a right to develop the mineral resource. It must also be recognized that BLM is limited by lease rights granted to moving any particular site a maximum of 200 meters from the location selected by the operator unless there is voluntary agreement by the operator. The surface owners should contact the operator regarding the specific drilling plans for wells on the property and seek to develop a mutually agreeable surface use plan w_th the operator. 8. One respondent would like to see a no surface use restriction or a requirement for directional drilling for their property. The mineral leases for this area did not include these restrictions on oil and gas development in this area. Such restrictions or conditions cannot be required after the lands are leased; it would be inconsistent with lease rights granted. Directional drilling was discussed in the EA (section 2.2.3) and was deemed to be unnecessary, except possibly on the Savage 1-23. The surface owners should contact the operator regarding the specific drilling plans for wells on the property and seek to develop a mutually agreeable surface use plan with the operator. 9. One respondent felt that they would be impacted by activity from August 20 through November 15. We concur that this could occur, however, in the case of split estate lands, the BLM will work with the surface owner to reduce impacts to the surface owner. However, due to lease rights considerations, BLM can only restrict drilling for a period of 60 days or less. The surface owners should contact the operator regarding the specific drilling plans for wells on the property and seek to develop a mutually agreeable schedule with the operator. 10. One respondent requested that the time for response to this EA be extended for an additional 90 days. Since the surface owner will still have several opportunities to affect small changes 3 in the locations of the above mentioned wells if and when they are actually proposed for drilling, I do not feel an extension of time is necessary. No substantive reasons were presented that would indicate a need to postpone this decision. Public Involvement: BLM and the White River National Forest (WRNF) initiated public meet,ngs and participated in several other meetings held by organizations, companies, agencies and individuals interested in impacts from gas development in the Beaver Creek area. The first meeting occurred June 4, 1997 at the Rifle City Hall. Since then, there have been several meetings and field trips (see page 6 of the EA for specifics) designed to gather public comment. On July 19, 1999 the Environmental Assessment (EA) for the project was released and sent out to all parties that had expressed interest. Comments were accepted through August 2, 1999. Public comments were either addressed in the EA or were discussed in this Decision Record Plan Conformance: The Federal oil and gas leases that are to be developed for this project predate the most recent amendment to the Resource Management Plan (RMP) for the Glenwood Springs Resource Area and WRNF leasing decisions. Therefore, the oil and gas leasing decisions can only be implemented to the extent that they do not diminish lease rights or to the extent that the lease holders voluntarily complies with those decisions. A review of current RMP decisions indicates that the project is in conformance with the existing oil and gas decisions. Also the proposal affecting WRNF lands is in conformance with the Land and Resource Management Plan for WRNF. Some of the compliance with the oil and gas decisions are voluntary on the part of BRC and TBI. Compliance and Monitoring: Compliance and monitoring will occur in accordance with the APD and SUPO in cooperation with the Colorado Oil and Gas Commission and the City of Rifle. Environmental Consequences: I have reviewed the EA prepared to analyze environmental impacts of the alternatives and I have determined that the proposed action would not have a significant impact on the human environment. Therefore, an environmental impact statement is not required. Approved by: d-t9-�t1 Michael S. Mortice Date Glenwood Springs Field Office Manager 4 0 SEP -14-1999 12 55 FROM GARFIELD CO ROAD & BRIDGE TO IJ Memo To: Mark Bean/Planning From Tom Russell Da toe September 14, 1999 Rea CR 317 / Intermountain Resources LLC. Mark, 9457785 P.01 GARFIELD COUNTY ROAD 8, BRIDGE I have discussed the road improvements that will be performed by Intermotmtain Resources LLC on CR 317 with Christopher Meyers. On 8-12-99, Chris, Jake Mall and myself inspected the portion of CR 317 that needs repairs prior to log haul traffic. At that time, we all agreed that the road would require 6" of class "2" material and would need to be covered with 3" of 1 3.4" road base material_ All drainage areas would be cleaned and re-established. Tf new culverts are needed. they will be installed by Intermountain Resources. Existing culverts looked good. The brush would be cleaned off of the 30' R.O.W. that exists on the road. All work would be performed and paid for by Intermountain Resources LLC. I have consulted with Chris Meyers about the asphalt surface from CR 317 (Beaver Creek) to the end of Tagenbaugh St . Intermountain Resources will be responsible for the engineering and estimates to supply and install 1 'A " thickness of asphalt, 24' wide, for that segment of roadway. The roadway segment will also include 5' aprons for all driveways, and a minimum of 2' shoulder gravel. The engineers estimate amount will be submitted to Garfield County in the form of a certified check. The check will be held in escrow until the county notifies Intermountain Resources to perform the worts. Intermountain Resources LLC will be responsible for any cost difference that may be present at the time of the road Improvement. Garfield County will have the necessary road improvements done at their discretion when they deem necessary. If you have any questions please call me at 945-0111. Thanks, Tom Russell • Page 1 TOTAL P.01 INTERMOUNTAI.IRAHES, LLC 11925 6530 Road . « P.O. Box 670 July 19, 1999 King Lloyd Garfield County Engineer 109 8th St., Suite 303 Glenwood Springs, CO 81601 Dear King: (9 2249-1812 Fax (970) 249-0727 Enclosed are our Beaver Creek road improvements (CR #317) final plans. The sheets show the Beaver Creek road plans and profiles, Beaver Creek road re -alignment plan and profile, as well as intervisible turnout locations. Understandably, these may require minor on -the -ground adjustments as construction progresses and various unforeseen circumstances dictate. Please feel free to call me if you have any questions. cc: file enc. GARFIELD COUNTY Building and Planning Department July 21, 1999 Chris Meyers Intermountain Ranches, LLC P.O. Box 670 Montrose, CO 81420 RE: Teepee Park Logging SUP Dear Chris: The Beaver Creek road improvement plans were received today and will be sent to the appropriate departments for review. On Monday, July 12th, the Board of County Commissioners approved Bill Gherardi, Woodland Management Consultants, as the consultant to monitor the logging activities on the Beaver Creek/Teepee Park area as required by the Special Use Permit conditionally approved by Resolution No. 97-70. It is still necessary to reach an agreement on the County Road 320 improvements. I have not heard anything further from King Lloyd about the County's plans to rebuild the road base on CR 320. He is aware of the condition of approval obligating the owners of the Teepee Park logging permit to resurface CR 320. If you have any other questions about the permit requirements or other issues, feel free to call or write to this office at your convenience. Sincerely, Mark L. Bean, Director Building & Planning Department 109 8th Street, Suite 303 945-8212/285-7972 Glenwood Springs, Colorado 81601 LEAVENWORTH & TESTER, P.C. ATTORNEYS AT LAW LOYAL E. LEAVENWORTH CYNTHIA C. TESTER GREGORY J. HALL DAVID H. McCONAUGHY KELLY D. CAVE DAVID A. MEISINGER* TOM KINNEY *Admitted in Wisconsin only June 22, 1999 J.D. Snodgrass Williams, Turner & Holmes, P.C. 200 North 6th Street P.O. Box 338 Grand Junction, CO 81502-0338 Re: Rifle Watershed District Permit No. 1-97 Dear J.D.: 1011 GRAND AVENUE P. O. DRAWER 2030 GLENWOOD SPRINGS, COLORADO 81602 TELEPHONE: (970) 945-2261 FAX: (970) 945-7336 ltlaw@sopris.net Enclosed is a fully executed copy of the Amendment to Watershed District Permit No. 1- 97 held by Intermountain Ranches, LLC and Intermountain Resources, LLC, LeeLynn, Inc. and Wiley Mountain, Inc. It is my understanding that Paul Bussone has started the water quality sampling as required by the amended permit. I believe we need to coordinate with the County regarding the joint independent consultant (Bill Gerardi). If you have any questions feel free to contact me. Very truly yours, LEAVENWORTH & TESTER, P.c. LEL:bsl Enclosure cc: Gary Osier, U.S. Forest Service, w/enc. Mark Bean, w/enc. Don DeFord, Esq., w/enc. Selby Myers, w/enc. Paul Bussone, w/enc. Chris Meyers, w/enc. F: \ 1999\Letters-Memos \RIFLE-Snodgrass-Itr-2. wpd PE14EIVED JUN 2 3. 1999 BEFORE THE CITY COUNCIL OF THE CITY OF RIFLE, COLORADO CONCERNING RIFLE WATERSHED DISTRICT PERMIT NO. 1-97 HELD BY INTERMOUNTAIN RANCHES, LLC FINDINGS OF FACT, CONCLUSIONS OF LAW AND AMENDMENTS TO RIFLE WATERSHED DISTRICT PERMIT NO. 1-97 I. FINDINGS OF FACT 1. Rifle Watershed District Permit No. 1-97 (the "Permit"), issued by the Rifle City Council to Tim D. Frase, Stacey D. Frase, Dave P. Frase, Clay K. Tucker, Sharon L. Tucker, Paul R. Quatraro and Kay Quatraro (the "Original Applicants") became effective on May 22, 1997. 2. The Permit allowed for certain logging activity to be conducted within the Beaver Creek Watershed pursuant to various terms and conditions set forth therein and in attachments thereto. 3. The Original Applicants assigned their rights and obligations under the Permit to Intermountain Ranches, LLC on October 15, 1997, and said assignment was approved by the City of Rifle on the same date. 4. As of October 15, 1997 Intermountain Ranches, LLC, a Colorado limited liability company of which Mr. Chris Meyers is a member, owned the real property (the "Subject Property") on which the logging activity is to occur, as well as the timber harvest rights associated with the Subject Property. 5. On November 5, 1998 Intermountain Ranches, LLC executed a Timber Deed whereby it conveyed certain timber harvest rights for the Subject Property to Intermountain Resources, LLC, a Colorado limited liability company of which Mr. Meyers is a member. 6. On February 10, 1999 Intermountain Ranches, LLC conveyed the fee title ownership of the Subject Property to LeeLynn, Inc. and Wiley Mountain, Inc., two Oregon corporations whose principals are also members of a member of Intermountain Resources, LLC. 7. By a separate lease agreement to be reached between the Permit Holders, LeeLynn, Inc. and Wiley Mountain, Inc. shall agree to provide Intermountain Resources, LLC access to the Subject Property in order to harvest timber pursuant to the Timber Deed and F: \ 1999\Resolutions \RIFLE-1-97-amendment.wpd -1- subject to the management and oversight of Intermountain Ranches, LLC. 8. No logs have been removed to date, but the parties expect such activity to begin in 1999. 9. The Permit should be amended to identify the additional parties involved in the management and operation of the logging activity contemplated by the Permit, subject to all of its original terms and conditions as well as the conditions and clarifications listed below, and to further provide that the Permit is still valid. II. CONCLUSIONS OF LAW AND AMENDMENTS TO THE PERMIT 10. The City incorporates the foregoing recitals as findings and determinations by the City Council, and conclusively makes all of the Findings of Fact, Determinations and Conclusions contained herein. 11. An undivided interest in the Permit shall be assigned by Intermountain Ranches, LLC to Intermountain Resources, LLC, LeeLynn, Inc. and Wiley Mountain, Inc. to properly reflect the identity of the four parties (collectively referred to herein as the "Permit Holder") involved in logging activity pursuant to and in reliance upon the Permit, and such assignment is hereby approved. 12. As soon as possible, but in no event later than July 1, 1999, the Permit Holder shall submit its proposed logging plan for 1999 to the City's Consulting Engineer, Resource Engineering Inc., with copies to the City Manager and City Attorney. The City Engineer shall use his best efforts to notify the Permit Holder of objections to the plan within 14 days of receipt, however, if the City Engineer fails to do so respond within 30 days of receipt, such plan shall be deemed approved. 13. The Permit requirement of twice -weekly baseline water quality monitoring, consisting of turbidity measurements at various flow levels on distinct points along Beaver Creek, shall be conducted for four to six weeks, as determined by the City's Consulting Engineer, prior to the commencement of any logging activity. Such water quality monitoring shall be at the Permit Holder's sole expense. 14. The monthly extended baseline water quality sampling program required by the - Permit shall commence as soon as practicable and shall continue until five samples have been taken. At least one sample must be taken prior to the commencement of any logging activity. Such water quality monitoring shall be at the Permit Holder's sole expense. 15. The ongoing water quality monitoring required by the Permit (bi-weekly and storm event turbidity testing) shall occur at the Permit Holder's expense, but may be subject to F: \ 1999\Resolutions \RIFLE -1 -97 -amendment. wpd -2- cost-sharing with other active permit holders within the Beaver Creek Watershed. The burden to negotiate such cost-sharing rests solely upon the Permit Holder and the other active permit holders and, in the event a cost-sharing agreement cannot be reached, each permit holder is responsible to conduct whatever water quality monitoring is required under its permit. 16. The $100,000 performance bond required by the permit shall be posted in a form suitable to the City Attorney and provided to the City Manager prior to the commencement of any logging activity. 17. The reasonable costs incurred by the City of Rifle in amending the Permit as provided for herein and ensuring that the Permit Holder begins to comply and continues to comply with the terms and conditions set forth herein and in the Permit, including without limitation attorney fees and engineering fees not listed in paragraphs 13 and 14 above, shall be borne by the Permit Holder. 18. Subject to approval by the Board of County Commissioners of Garfield County, the Permit Holder shall hire Bill Gherardi of Woodland Management Consultants, Fort Collins, Colorado, or such other consultant as the parties may mutually agree upon, to act as the forest management practices compliance consultant required by the Permit as well as the erosion control/water quality supervisor required by the Permit. 19. Unless an extension is requested and granted, the Permit shall expire and become void if the log removal is not commenced by November 20, 1999. 20. Any notice to the City required by the Permit or this Amendment . shall be provided to: Selby Myers, City Manager, 202 Railroad Avenue, Rifle, CO, 81650 Lee Leavenworth, Esq., City Attorney, 1011 Grand Ave, Glenwood Springs, CO, 81602 Paul Bussone, Consulting Engineer, 909 Colorado Ave., Glenwood Springs, CO, 81601. 21. Any notice to the Permit Holders required by the Permit or this Amendment shall be provided to: Chris Meyers, 11925 6530 Road, Montrose, CO, 81402 J.D. Snodgrass, Esq., 200 N. 6th Street, Grand Junction, CO, 81502-0338 Larry Gildea, Esq., 38437 Dexter Road, Dexter, OR, 97431. 22. This Amendment was discussed at a duly noticed public hearing of the Rifle City Council at the Rifle City Hall on June 16, 1999. 23. This Amendment shall not be effective until agreed to and approved by the Permit F: \ 1999\Resolutions \ R I FLE-1-97-amendment. wpd -3- -TOid~r and Jnr City as evide-nced by thtir res;.cctive ::lgr .ures bC;_ow. . OCr C37 24. behalf of any ou..ry to :his 1"'_end _en.` shat; BSc of etive f a_. i.12r7.`:}$... . J 25. Except as expr.:ssly modified herein. th::.__r: and coed;:ions o! Ritle Vva Grslicd Disrrict !-'errnit No. 1-97 shall rcmair. i, iu i for zr:d :±Frcc_. _.OL:DR_.DO 1CIE O BY: INTERMOUNTAIN RANCHES, LLC Y+ i . Chris � ieyc r „l.)9'.) vao;cci:nrl:2:(;.L.;_».ur..� w:i__Y MOLNT _N, INC.. IN'.ERMO`^TIN RESOURCES, LLC til r. Chri .IJN. 11 99 ,=R:; 09:46 COAL'✓.UN_CP_-:C\ X :44 ?ACE. 7 Woodland Management Consultants P.O. Box 10 Fort Collins, Colorado 80522 (970) 221-1336 May 28, 1999 Mr. Chris Meyers Intermountain Forest Products Co. PO Box 670 Montrose, CO 81402 Dear Mr. Meyers, A recap of the Tepee Creek Project; - Preliminary discussions between our companies began in July, 1998, - A formal agreement was entered into in September, 1998, - We performed a field evaluation of the project on November 17, 1998. I am looking forward to working on this project as field conditions permit. Bill Gherardi Forester, Woodland Management Consultants PROFESSIONAL QUALIFICATIONS STATEMENT, PROJECT EXPERIENCE, AND RESUMES for WOODLAND MANAGEMENT CONSULTANTS P.O. Box 10 Fort Collins, Colorado 80522 970-221-1336 WOODLAND MANAGEMENT CONSULTANTS is a forestry consulting firm which provides the forestland owner the management services for profitable activities. Our appraoch considers the economics of any management entry for short and long term gain. Our conclusions and recommendations are directed at providing a profit to the landowner. WOODLAND MANAGEMENT CONSULTANTS has provided services to a wide variety of clients, including State and Federal governments, the wood products industry, and private landowners in Colorado, Nebraska, South Dakota, Utah and Wyoming. Our projects have ranged from small, site detailed management plans to large scale timber harvest operations. The results of our projects provide a wide variety of benefits to our clients. Although the primary objective is profit, many aspects of the enviroment can be affected. Some examples are: - an increase in wildlife use of the area - an increase in forage production - enhanced aesthetics through proper planning - an increase in water yields - a decrease in wildfire hazard - a decrease in losses due to insct or disease problems. WOODLAND MANAGEMENT CONSULTANTS offers a variety of services, dependinc on the objectives of the client. Our staff has successfully completed projects in the following areas: MANAGEMENT PLANNING - This is the initial step for forest management. The land is described in detail as to slope, soil conditions, and windfall risk. The trees are described in terms of size, insect and disease problems, and amounts of timber in the various product classes. The landowners objectives are outlined in detail. With this as a base, the method of management is detailed with relevant costs and yield of resources. TIMBER CRUISING- The cruise provides a detailed list of what is on the land. The trees are described as to species, size, volume and product class. TIMBER SALE LAYOUT- This service accomplishes the ground application of your objectives. The area to be harvested will be marked with paint, and then sampled to determine the amount of product for sale. The value of the product will be derived. A contract will be prepared to reflect your concerns, describe the area to be,harvested, amount of product, price and the time frame for completing the work. SALE ADMINISTRATION- This service provides insurance for the landowner and the buyer of the sale. The landowners concerns are safeguarded by having experienced inspectors. INSECT AND DISEASE SURVEYS AND TREATMENT- Epidemic insect populations and certain tree diseases can have a profound effect on your forest. Recommendations for preventing further loss through manual, silvicultural or chemical control measures can be prescribed. APPRAISALS- Timber valuation principles are applied to natural and manmade losses to the forest. TRANSPLANTS- Management techniques are applied to yield a continuous supply of saleable trees. EXPERT WITNESS AND LITIGATION SUPPORT- Forestry expertise is provided for court claims. WOODLAND MANAGEMENT CONSULTANTS has extensive experience in a variety of projects in Colorado, Nebraska, South Dakota, Utah and Wyoming. Specific examples follow. TIMBER INVENTORY- Woodland Management Consultants has completed intensive timber inventory projects on 1 million acres of US Forest Service, Bureau of Land Management, Bureau of Indian Affairs and private land. -2- TIMBER SALES - Berger Land Company, Bailey, Colorado. Management sale of 1.5 Mmbf. Adminstered sale. - Colorado State Land Board, Denver, Colorado. plan and Management plans, timber sales on 4 sections. Administered all sales. - Diamond Peak Ranch, Ft. Collins, Colorado. Management plan, timber sales, transplant sales. Administered all sales. - Evans Ranch, sale. - Hagemeister Ranches, timber sale. Evergreen, Colorado. Management plan and timber Wheatland, Wyoming. Management plan and - Indian Creek Park Association, Evergreen, Colorado. Management plan and timber sales. Administered all sales. - Kamp Cattle Company, Walcott, Wyoming. timber sale. Management plan and - Lahey Ranches, Gould, Colorado. Management plan, timber sales and transplant sales. Administered all sales. - Stelbar Ranch, Gould, Colorado. Aspen timber sale. - True Ranches, Casper, Wyoming. Management plan. WILDFIRE HAZARD MAPPING- Derived wildfire hazard rating on 30,000 acres on land in Routt County., Colorado. Developed a wildfire mitigation plan for a forested development in Larimer CO. INSECT & DISEASE - Spruce budworm spraying on high value trees in Colorado. - Mountain pine beetle location and treatment procedures for Keystone Ski Area and Centron,Inc. , Silverthorne, Colorado. - Pilot project in the use of cacadilic acid to control mountain pine beetle for the Colorado State Forest Service, Boulder, Colorado. TIMBER STUDIES- - Wilderness Effects on Timber Supply for Cook Lumber Company, Fort Collins, Colorado. - Private Land Oppurtunities for Bighorn Lumber Company, Laramie, Wyoming. - Lodgepole Poletimber Availability for Teton West Lumber, Cheyenne, Wyoming. APPRAISALS - Damage appraisal for trespass. Prepared for Bud Dodds, Spearfish, South Dakota. - Damage appraisal for trespass. Prepared for Vern Thorstenston, Rapid City, South Dakota. - Damage appraisal from wildfire loss. Prepared for Doug Watson, Sundance, Wyoming. - Damage appraisal from wildfire loss. Prepared for Bud Hollenbeck, Edgemont, South Dakota. - Damage appraisal from mountain pine beetle. Prepared for Glen Swank, Castle Rock, Colorado. - Damage appraisal for site cleanup to a harvest area. Prepared for Peter Thieriot, Elk Mountain, Wyoming. - Damage appraisal for trespass. Prepared for Harris, Karstdeat, Jamison & Powers, Colorado Springs, Colorado. - Damage appraisal for trespass. Prepared for James Engleking, PC., Denver, Colorado. WOODLAND MANAGEMENT CONSULTANTS experience can be verified by; Bart Berger Bailey,Colorado 970-898-2278 Duane Lahey Peter Thieriot Joe Moreng Dean Alexander Dean Singleton Ft. Collins, Colorado 970-221-9115 Elk Mtn., Wyoming 307-348-7447 Ft. Collins,Colorado 970-484-7102 Laramie, Wyoming 307-742-3237 Denver, Colorado 303-820-1959 -4- PERSONAL RESUME of WILLIAM GHERARDI Education; Bachelor of Science in Forest Management. University of Minnesota. 1971. Experience; 1980 to the present. Woodland Management Consultants, Ft. Collins, CO. Developed workshop promoting forest management with private landowners. Implemented Tree Farm Program in Colorado as chairman. Conducted timber cruises, appraisals. log scaling and timber studies for clients. 1975 to 1980. Forests West, Pty., Ft. Collins, CO. Developed prototype inventory contracts with the US Forest Service. Conducted sale preparation and administration of private timber in Colorado. 1974 to 1975. Edwards Hines Lumber Co., Laramie, Wyoming. Conducted timber cruises and appraisals for 4 sawmills. 1973 to 1974. US Forest Service, Encampment, Wyoming. Directed office preparation of photos _ for inventory area. Supervised 10 man inventory crew. 1972 to 1973. John Ryan Company, St. Paul, Minnesota. Supported 3 man crew in boundary and topographic surveys for homes, schools aro roads. 1971 to 1972. US Forest Service, Gunnison, Colorado. Supervised 8 man inventory crew. Prescribed stand treatments from data. Memberships; Society of American Foresters PERSONAL RESUME OF JOHN RAKE Education; Bachelor of Science in Forest Management. Colorado State University. 1975. Experience; 1984 to the present. Woodland Management Consultants, Ft. Collins, CO. Management planning, timber sale layout and sale administration for clients. 1979 to 1984. Timberline Foresters, Inc. Ft. Collins, CO. Conducted timber inventories, sale layout and prescription derivation for public and private clients. 1978 to 1979. 1 Bercier Construction Co., Custer, South Dakota. Performed aerial photo interpretation and timber inventory for the US Forest Service. 1974 to 1978. US Forest Service, Sheridan, Wyoming. Conducted timber cruises, sale layout and marking of federal timber. 1973 to 1974. US Forest Service, Granby, Colorado. Prepared timber sales, conducted regeneration surveys and stand surveys for federal timber. 1972 to 1973. Colorado State Forest Service, Ft. Collins, Colorado. Conducted dutch elm survey. Memberships; Society of American Foresters Anthony W. Williams J.D. Snodgrass William D. Prakken David J. Turner" Mark A. Hermundstad' Susan M. Corte Kirsten M. Kurath Of CounreL• Berndt C. Holmes James M. Colosky, P.C. All Attorneys Admitred in Colorado "Also Admitted in Utah GRAND JUNCTION OFFICE 200 N. 6th Street 00. Box 333 Grand Junction, Colorado 51502-0333 Phone 970/242-6262 Fax 97(1/241-3026 wthco@aol.com VIOAB OFFICE 94 F.asr Grand Avenue Moab, Utah 84532-2330 Phone 435/259-4381 Williams, Turner & Holmes, P.C. ATTORNEYS AT LAW July 28, 1999 VIA FEDERAL EXPRESS Ms. Cindy Hockelberg U. S. Forest Service Rifle Ranger District 0094 County Road 244 Rifle, Colorado 81650 4 1999 ) RE: Intermountain Ranches, LLC; Intermountain Resources, LLC; )'�;I,{ CLE, LeeLynn, Inc., an Oregon corporation and Wiley Mt., Inc., an Oregon corporation Dear Cindy: In our last telephone conversation you requested the deeds by which the Teepee Creek property was transferred by Intermountain Ranches, LLC. In accordance with your request, I am enclosing the following copies of deeds and associated documents: 1. Warranty Deed from Intermountain Ranches, LLC, a Colorado Limited Liability Company to LeeLynn, Inc., an Oregon Corporation, and Wiley Mt., Inc., an Oregon corporation as equal tenants in common, recorded March 15, 1999 in Book 1119 at Page 39 of the Garfield County records. 2. A copy of the Articles of Incorporation of LeeLynn, Inc., an Oregon corporation dated May 28, 1992 and filed June 3, 1992 with the Secretary of State. 3. A copy of the Articles of Incorporation of Wiley Mt., Inc., an Oregon corporation dated May 28, 1992 and filed June 3, 1992 with the Secretary of State. 4. A copy of a Timber Deed from Intermountain Ranches, LLC to Intermountain Resources, LLC, a Colorado Limited Liability Company recorded November 17, 1998 in Book 10 ? at Page 617 of the Garfield County records. This Deed relates to 5.5 million board feet of the described timber on the Teepee Creek property. 5. A copy of the Articles of Organization of Intermountain Resources, 9 Ms. Cindy Hockelberg July 28, 1999 Page 2 LLC dated November 4, 1998 and filed with the Secretary of State of Colorado on November 5, 1998. Please note that the management of Intermountain Resources, LLC is vested in the members. The members are McDougal Bros. Investments, a partnership, and Christopher C. Meyers. By separate letters to you, Mr. Larry 0. Gildea, the attorney for LeeLynn, Inc. and Wiley Mt., Inc. is designating those individuals with whom the Forest Service may deal regarding Forest Service matters with respect to the Teepee Creek property. I am advised that the final road design plans have now been filed with you. It is our hope that matters with respect to the easement issues can now proceed to be concluded as quickly as possible. Very truly yours, JDS/kls Enclosures cc: Chris Meyers Larry Gildea, Esq. 1 i#111111111111111111111111111111111111111111111111 Ilir 541635 03/15/1999 01:18P B1119 P39 M ALSDORF 1 of 3 R 16.00 D 320.00 GARFIELD COUNTY CO WARRANTY DEED Grantor: INTERMOUNTAIN RANCHES, LLC., a Colorado Limited Liability Company whose legal address is 11925 6530 Road, P.O. Box 670, Montrose, Colorado 81402 for the consideration of Three Million Two Hundred Thousand and NO/100ths ($3,200,000.00), in hand paid, hereby sells and conveys to LEELYNN, INC., an Oregon corporation, and WILEY MT., INC., an Oregon corporation, as equal tenants in common; the legal address of both Grantees is 38437 Dexter Road, P. 0. Box 87, Dexter, Oregon 97431, the real property in Garfield County, Colorado, described on Exhibit A, attached hereto and by this reference made a part hereof, with all of its improvements and appurtenances, and warrants title to the same, subject to easements, rights of way, and restrictions of record and real property taxes. DATE : February 10 , 1999. STATE OF OREGON ) ss. County of Lane ) INT ERMO ► N RANCHES, LLC. ristopher C. Meye tuber/Agent The foregoing Warranty Deed was executed before me thisloth day of February, 1999 by Christopher C. Meyers in his capacity as a member and authorized agent of Intermountain Ranches, LLC, a•1Coorado Limited Liability Company. OFFICIAL SEAL MERRILY A COLDREN NOTARY PUBUC-OREGON COMMISSION NO. 305675 MY CC assoN Ems NOVB+BER 1, X01 After Recording Return to: LeeLynn, Inc. and Wiley Mt., Inc. P. O. Box 87 Dexter, OR 97431 i Notary Publ.' for Oregon My Commissi Expires: (1 �/ / (20d ( -I (dill UAW 11111 111 111111 1411 III 11111(Iiia111 541635 03/15/1999 01:18P B1119 P40 M ALSDORF 2 of 3 R 16.00 D 320.00 GARFIELD COUNTY CO THE SOUTHWEST QUARTER (SW1/4) OF SECTION THIRTEEN (13) , TOFTNSHIP SEVEN (7) SOUTH, RANGE NINETY-FOUP, (94) WEST OF THE SIXTH PRINCIPAL MERIDIAN. THE SOUTH HALF (S1/2) OF THE FIFTEEN (15) , TOWNSHIP SEVEN WEST OF THE SIXTH PRINCIPrL PART OF PART OF PART OF PART OF PART OF PART OF PART OF PART OF PART OF PART OF PART OF PART OF ALICE ALICE NO. 1 ALICE•NO. 2 ALICE NO. 3 LITTLE MAUD LITTLE MAUD LITTLE MAUD LITTLE MAUD LITTLE MAUD LITTLE MAUD LITTLE MAUD DRAKE NO. 3 DRAKE NO. 4 DRAKE NO. 5 ALBERTA NO. 1 ALBERTA NO. 2 ALBERTA NO. 3 ALBERTA NO. 4 ALBERTA NO. 5 P.C. JUNIOR NO. P.C. JUNIOR NO. P.C. JUNIOR NO. VIRGINIA NO. 1 NO. No. NO. NO. N O . NO. NO. 3 5 7 9 11 13 1 2 3 SOUTH HALF (S1/2) OF SECTION (7) SOUTH, RANGE NINETY-FOUR (94) MERIDIAN. AND LITTLE MAUD NO. 15 OIL SEPJJE PLACER MINING CLAIMS DESIGNATED AS SURVEY NO. 20096, EMBRACING A PORTION OF SECTIONS TWENTY-FOiT.'_ AND TWENTY-FIVE AND T E UNSURV. YED PORTION OF TOWNSHIP SEVEN SOUTH OF RANGE NINETY- FOUR WEST OF THE SIXTH PRINCIPAL MERIDIAN, AS DESCRIBED IN UNITED STATES PATENT RECORDED DECEMBER 17, 1932 IN BOOK 164 AT PAGE.486. TOGETHER WITH: ALL THAT REAL PROPERTY SITUATE, LYING AND BEING IN GARFIELD COUNTY, COLORADO, CONSISTING OF TEE FOLLOWING PLACER MINING CLAIMS, TO PiIT: PARCEL A: MT. M-Wl•2.1 NO. MT. NT. NT . t1i. MT. Mi. 20. 2;0 . ZiO. ND . NO. NO . . 1 2 3 6 6 9 AS DESCRIBED IN UNITED STATES PATENT NO. 1031431 RECORDED DECEMBER 15, 1931 IN BOO; 162 AT PAGE 254 •AS RECEPTION 2;0 . 111666 OF THE GAR FIELDCOUi� T t RECORDS. EXHIBIT .1 (Page 1 of 2) 1111111 11111 1111111 11111 111 111111 III11111111111111111111 541635 03/15/1999 01:18P B1119 P41 M ALSDORF 3 of 3 R 16.00 D 320.00 GARFIELD COUNTY CO PARCEL 13: MT. . t•tAP1M NO. 10 MT. t•tAr•>i1 NO. 11 AS DESCRIBED ILI UNITED STATES PATENT NO. 1051425 RECORDED DECEMBEP. 16, 1931 IN BOOK 168 AT PAGE 255 AS RECEPTION NO. 111667 OF TRE GARFIELD COUNTY RECORDS. PARCEL C: MT. MANM NO. 12 MT. RAM NO. 13 MT. MAMM NO. 14 MT. tAI'TM NO. 15 AS DESCRIBED IN UNITED STATES PATENT NO. 1119490 RECORDED MAY 21, 1945 IN BOOK 209 AT PAGE 447 AS RECEPTION NO. 154101 OF THE GARFIELD COUNTY RECORDS. NOTE: PARCEL A ABOVE IS SOMETIMES KNOWN AS: TRACT RANGE COUNT: TRACT RANGE COUNTY 42 IN SECTIONS 5 93 WEST OF THE S , COLORADO, AND 65 IN SECTIONS 3 93 WEST OF THE S , COLORADO. Together with: , 6., 7 AND 2 TOWNSHIP 8 SOUTH, IXTH PRINCIPAL MERIDIAN, GARFIELD 0 AND 31, TOWNSHIP"7 SOUTH, IXTH PRINCIPAL MERIDIAN, GARFIELD All water and water rights, ditches and ditch rights, reservoir and reservoir rights, spring and spring rights and the rights to all and any surface or subsurface water of every kind, nature or description (all of the foregoing being referred to as the "water rights") existing on, appurtenant to, historically used in conjunction with or that otherwise may be available uron the Property, whether subject to any water rights decrees or not, if rights are held by Seller, and all growing crops or every kind, nature or description and specifically including but not limited to all timber, standing or fallen. EXHIBIT A (Page 2 cf 2) 07/26/99 MON 09:59 FAX 541 937 3186 McDOUGAL BROS. 4002 .-% ARTICLES OF INCORPORATION of LEELYNN, INC. FILED JUN 0 3 1992 SECRETARY OF STATE ARTICLE I: The name of this corporation is LeeLynn, Inc., and its duration shall be perpetual. ARTICLE II: The purpose or purposes for which the corporation is organized is any lawful activity either within or without the State of Oregon, except insurance and banking. ARTICLE III: The aggregate number of shares which the corporation shall have authority to issue is 1,000 shares common stock, no par value. ARTICLE IV: The address of the initial registered office of the corporation is 342 East 12th Avenue, Eugene, Oregon 97401, and the registered agent at such address is Larry 0. Gildea. ARTICLE v: The name and address to which all notices are to be sent is Larry 0. Gildea, 342 E. 12th Avenue, Eugene, Oregon 97401. ARTICLE Vi: The number of directors constituting the initial board of directors of the corporation is one (1), and the name and address of the person who is to serve as director until the first annual meeting of the shareholders or until his successor is elected and qualified is: Melvin L. McDougal P.O. Box 87, Dexter, Oregon 97431 ARTICLE VII: The shareholders of this corporation shall have no pre-emptive rights to acquire additional or treasury shares of the corporation's unissued and authorized stock. ARTICLE VIII: The name and address of the incorporator is: LARRY 0. GILDEA 342 East 12th Avenue Eugene, Oregon 97401 07/26/99 MON 09:59 FAX 541 937 3186 McDOUGAL BROS. t 003 I, the undersigned incorporator, declare under penalties of perjury that I have examined the foregoing and to the best of my knowledge and belief it is true, correct and complete, DATE: MayJ, 1992. 07/26/99 MON 09:59 FAX 541 937 3136 cc2._c(7?1-c) McDOUGAL BROS. 10004 FILED JUN 0 3 1992 ARTICLES OF INCORPORATION SECRETARY OF STATE of WILEY MT., INC. ARTICLE I: The name of this corporation is Wiley Mt., Inc., and its duration shall be perpetual. ARTICLE II: The purpose or purposes for which the corporation is organized is any lawful activity either within or without the State of Oregon, except insurance and banking. ARTICLE III: The aggregate number of shares which the corporation shall have authority to issue is 1,000 shares corrrncn stock, no par value. ARTICLE IV: The address of the initial registered office of the corporation is 342 East 12th Avenue, Eugene, Oregon 97401, and the registered agent at such address is Larry 0. Gildea. ARTICLE V: The name and address to which all notices are to be sent is Larry 0. Gildea, 342 E. 12th Avenue, Eugene, Oregon 97401. ARTICLE VI: The number of directors constituting the initial board of directors of the corporation is one (1), and the name and address of the person who is to serve as director until the first annual meeting of the shareholders or until his successor is elected and qualified is: Norman N. McDougal P.O. Box 87, Dexter, Oregon 97431 ARTICLE VII: The shareholders of this corporation shall have no pre—emptive rights to acquire additional or treasury shares of the corporation's unissued and authorized stock. ARTICLE VIII: The name and address of the incorporator is: LARRY 0. GILDEA 342 East 12th Avenue Eugene, Oregon 97401 07/26/99 MON 10:00 FAX 541 937 3136 MCDOUGAL BROS. I, the undersigned incorporator, declare under penalties of perjury that I have examined the foregoing and to the best of my knowledge and belief it is true, correct and complete. DATE: May 2,..0P; 2992. 4 005 [IIIIII 11111 111111 11111 1111 11111 ''II 111 1111111111111 535560 11/17/1998 04:02P B16.4 P617 M ALSDORF 1 of 4 R 30.50 D 0.00 GARFIELD COUNTY CO TIMBER DEED � Grantor: INTERMOUNTAIN RANCHES, LLC whose legal address is 11925 6530 Road, P.O. Box 670, Montrose, Colorado 81402, for the consideration of One Million Two Hundred Ten Thousand and NO/100 Dollars ($1,210,000.00), in hand paid, hereby sells and conveys to INTERMOUNTAIN RESOURCES, LLC, a Colorado limited liability company, whose legal address is 11925 6530 Road, Montrose, Colorado 81402, 5.5 million board -feet of merchantable green conifer specie timber on the real property in Garfield County, Colorado, described on Exhibit A, attached and by this reference made a part of this Deed, together with an assignment of Grantor's right to harvest the timber as set forth in paragraph 15A of the wraparound, nonrecourse deed of trust dated September 19, 1997, recorded October 17, 1997, Book 1039, Page 10, Reception No. 515193, Garfield County, Colorado records, and two million board feet of merchantable green conifer specie timber on the real property described on Exhibit B in Gunnison, Montrose and Ouray Counties, Colorado. DATE: November , 1998. \J � STATE OF OREGON) ss. County of Lane ) INTERMOUN RANCHES, LLC ..nristopher C. M , Member/Agent The foregoing Timber Deed was executed before me this . �' day of November, 1998 by Christopher C. Meyers, in his capacity as member/agent of Intermountain Ranches, LLC. OFFICIAL SEAL GAYLE BEASE NOTARY PUBLIC- OREGON COMMISSION NO. 303224 MY COMMiSSiON EXPt ES AUGUST 26, 21101 After Recording Return to: McDougal Bros. Investments P. 0. Box 87 Dexter, OR 97431 Notary Pu My Commis c for Oregon n Expires: 2 (P --6/ 1111111 VIII 11111111111 ilii VIII II''��l III 1111111111111 535560 11/17/1998 04:02P B10S '618 M ALSDORF . 2 of 4 R 30.50 D 0.00 GARFIELD COUNTY CO THE SOUTHWEST QUARTER (SFi1/4) OF SECTION THIRTEEN (13) , TOWNSHIP SEVEN (7) SOUTH, RANGE NINETY-FOUR (94) WEST OF T C SIXTH PRINCIPAL MERIDIAN. TEE SOUTH I-LALF (S1/2) OF THE SOUTH HALF (S1/2) OF SECTION FIFTEEN (15), TONNSHIP SEVEN (7) SOUTH, RANGE NINETY -FOU' (94) WEST OF THE SIXTH PRINCIPAL MERIDIAN. PART OF DRAKE 2i0. 3 PART OF DRAKE NO. 4 PART OF DRAKE NO. 5 PART OF ALBERTA NO. 1 PART OF ALBERTA NO. 2 PART OF ALBERTA NO. 3 PART OF ALBERTA NO. 4 PART OF ALBERTA NO. 5 PART OF P.C. JUNIOR NO. 1 PART Or P.C. JUNIOR NO. 2 PART OF P.C. JUNIOR NO. 3 PART OF VIRGINIA NO. 1 ALICE ' ALICE N0. 1 ALICETO. 2 ALICE NO. 3 LITTLE M tJD NO. 1 LITTLE MAUD NO. 3 LITTLE MAUD N0. 5 LITTLE MAUD NO. 7 LITTLE M.JJD NO. 9 LITTLE MAUD N0. 11 LITTLE MAUD NO. 13 AND LITTLE MAUD N0. 15 OIL SHALE PLACER MINING CLAIMS DEESIGN?.TED AS SURVEY NO. 20096, EMBRACING A PORTION OF SECTIONS TWENTY-FOUR AND TWENTY-FIVE AND THE t.T SURV YED PORTION 0= TOWNSHIP SEVEN SOUTH OF RANGE NINETY- FOUR WEST OF TEE SIXTH? PRINCIPAL MERIDIAN, AS DESCRIBED IN UNITED STATES PATENT RECORDED D ECEMBE? 17, 1932 IPi BOOB. 16: AT PAGE -466. TC0ET _.R Fi_Tr: ALL T" -.T REAL PROPERTY SI TJ: _TE, LYING AND BEING IN C -AR= IELD COUNTY, COLORADO, CONSISTING OF HE ??OLLOFiI :' PLACER CLAINS, TO WIT: AS DESCRIBED It; UNITED STATES P ._E:T. 2?0. 1031431 RECO:.DZO DECE:•13ER 15 1531 Ili BCOK 165 AT PAGE 254 AS RECEPTION 2: 1116E€ 0? THE GAR:IE1D COUNTY RECOF.D . EX:!1.2LT A (I': oe 1 c° 2) PARCEL S: 1111111 11111 II'" 11111 1111 11111 1111111 111 11111 1111 IIIA 535560 11/17/1998 04:02P 81098 P619 M ALSDORF 3 of 4 R 30.50 D 0.00 GARFIELD COUNTY CO NT . t•IAMM NO . 10 1.1A.t.C.1 NO . 11• AS DESCP.IBED IN UNITED STATES PATENT NO. 1051425 PECOP.DED DECEMBER 16, 1931 IN BOO: 168 AT PAGE 255 AS P.ECEPTIO'1 NO. 111667 OF THE GARFIELD COM= PECO?.DS. PARCEL C: MT. MAt,tvt NO. 12 MT. MA1'' M NO. 13 MT. MAMM NO. 14 MT. t L1 NO. 15 AS DESCRIBED IN UNITED STATES PATENT NO. 1119490 RECORDED MAY 21, 1945 IN BOOK 209 AT PAGE 447 AS RECEPTION NO. 154101 OF TEE GARFIELD COUNTY RECORDS. NOTE: PARCEL:A ABOVE IS SOMETIMES KNO'rtN AS: TRACT 42 IN SECTIONS 5, 6, 7 AND 2, TOWNSHIP S SOUTH,` RANGE 93 WEST O: THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, COLORADO, AND . TRACT 65 IN SECTIONS 30 AND 31, TOWNSHIP7 SOU -E, RANGE 93 WEST OF THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, COLORADO. • ' • Together with: All water and water rights, ditches a;:d ditch rights, reservoir and reservoir rights, spring and spring riehts and the rights to all and any surfacc or subsurface water of every kind, nature or description (all of the foregoing being referred to as file "water rights") existing or., appurenc ,t to, historically used in conjunction with or that otherwise may be available upon the Property, whether subject to any water riehts decrees or not, if rights are held by Seller, and all growing crop or everykind,I d standing r: tllr or C:'25:.f1ai10(1 211 $7'CI.,Ca!iy including but rot 1;.,,lte�' to alltimber," �g Or fallen. EX?:LZ T_ i ("raze 2 c` 2) EXHIBIT "B" UNITED STATES GOVERNMENT T.CITs 9 AND 10, Sl•.C:TIC,:.: .15, 'DV.V;SHIT 47 NORTH, RANGE 7 WEST, NEW, MEXICO PRINCIPAL. MERIDIAN, COUNTY OF GUNNISON, STATE OF COLORADO, ',AND THAT PANT OF THE NI/2 OF SECTION 36 AND THAT PART OF SECTION 25 LYING SOUTH OF COAL CREEK, TOWNSHIP 47 NORTH, RANGE. 7 WEST OF THE NI:W MEXICO PRINCIPAL MERIDIAN, EXCEPT THE FOLLOWING TWO TRACTS OF LAND: A PARCEL OF LAND LOCATED IN THE SOUTH 1/2 OF SECTION 25, AND '1'Itf: NORTH 1/2 OF SECTION 36, TOWNSHIP 47 NORTH, RANGE 7 WEST, NI•:4! MEXICO PRINCIPAL MERIDIAN, LYING SOUTIIENLY OF THE CENTIi1:1.1NE 01' C:OA1. CREEK, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE BRASS CAI' SET FOR THE NORTHEAST CORNER OF SECTION 36; THENCE SOUTH 5' 27' 52" EAST 974.31 FEET ALONG THE EAST LINE OF SECTION 36; THENCE SOUTH 90' 00' WEST 267.82 FEET; THENCE NORTH 67' 45' 31" WEST 396.01 FEET; 'EVINCE NORTH 32' 34' 59" WEST 413.00 FEET; THENCE NOI:TII 2S' 03' 32" EAST 331'.30 FEET; THENCE NORTH 49' 16' 24" WEST 452.26 FEET; THENCE SOUTH 55' 15' 49" WEST 435.77 FEET; THENCE NORTH 13' 52' 50" EAST 618.72 FEET TO THE CENTERLINE OF COAL CREEK; 'THENCE GENERALLY ALONG =THE TIHE C1iN'l'ERLTNE OF-COAL•CREEK-'('TIG-FOLT.O'WTNG-COURSES:-NO1:'rtt 51'. 35' 00" LAST 99.99 FEET; NORTH 55' 35' 00" LAST 95.50 FEET; NORTH 73' 35' 0(I" EAST 234.50 FEET; NORTH 77' -05' -00" FAST 191.40 FEET; NORTH .47' 05' 00" EAST 134.20 FEET; NORTH S 1 ' 27' 44" EAST 250.00 FEET; NORTH 73' 57' 44" EAST 201.10 FEET; NORTH 51' 57' 44" EAST 99.95 FEET TO A POINT ON THE EAST LINE OF THE S1/2 OF SECTION 25; THENCE LEAVING SAID CREEK CENTERLINE SOUTH 0' 07' 20" WEST 1109.58 FEET ALONG TIIR EAST LINE OF SECTION 25 TO THE POINT OF BEGINNING, ALSO EXCEPT: A PARCE1. OF LAND LOCATED 1N THE SOUTH 1/2 OF SECTION, 25 AND THE NOI:TII 1/2 OF SECTION 16, TOWNSHIP 47 NORTH, RANGE -7 WEST, `NIil7 MEXICO PRINCIPAL MERIDIAN, LYING SOUTHERLY OF THE CENTERLINE O1? COAL CREEK, MORE PAl:TIC(J1.ARY DESCRIBED AS FOLLOWS: COMMENCING AT THE BRASS CAP SET POR 'I'EIE NORTHEAST CORNER OF SECTION 35; THENCE SOUTH 5' 27' 52" EAST 974.31 FEET ALONG THE EAST LINE OF SECTION 30; THENCE SOt1TII 90' CO' WEST 267.52 FEET; 'THENCE NORTH 67' 45' 11" WEST 190.01 IEE'I' '1'(I THE TRUE POINT OF 11EGINNING; THENCE NORTH 57' 20' 57" WEST 731.9:: FEET; 'flli?NC:L• NORT1! 59' 52' 12" WEST 1791.45 FEET TO THE CENTERLINE OF COAT. CREEK; THENCE GENERALLY ALONG THE CEiNTERLTNE OI: COA(. CREEK THE FOLLOWING COURSES: SO(1TI! 79' 39' 25" EAST 157.4S -FEET; NORTH 53' (13' 00" EAST 09.70 FEET; NORTH 72' 50' 00" EAST 146.70 FEET; SOUTH 71' 55' 00" EAST 133.50 FEET; NORTH 61' 50' 00" EAST 274.90 FEET; SOUTH 02' 55' CO" EAST 96.50 FEET; NORTH 56' 50' 00" EAST 82.60 FEET; NORTH 5' 05' 00" EAST 90.60 FEET; NORTH 57' 35' CO" EAST 236.90 FEET; NORTH 67' 35' 00" EAST 135.70 FEET; NORTH 30' 50' CO" EAS'(' 130.50 FEET; NOI:'I'I! 84' 19' 00" EAST 299.96 FEET; TIIENC:F. LEAVING SAID CREEK CENTERLINE so= 13' 52' 50" WEST 615.72 FEET; THENCE NORTH 85' 15' -19" EAST 435.77 FEET; THENCE SOUTH 49' 16' 24" EAST 452,25 FEET; THENCE SO(E'I'1: 25' 01' 32" WEST 331.30 FEET; THENCE SOUTH 32' 35' 00" EAST 413.00 FEET '1't) THE TRUE POINT OF BEGINNING, SECTION 22: SE1/4 • SECTION 27: 1';1/2 5711/4, 51/2 5111/4, t::/1/4, SI/2 NEI/4, 1':I/2 Slit/I, EI/2 SWI/.1, AND C/l/2 N' 1/4 NEI/4 A::) CO!.::.lEN:-..I;,C AT 111E 5111/4 CORNER i.:' THE NEI/4 NEI/4, THENCE NORTH 460.69 FEET, THENCE 1SES'l' 400.09 FEET, THENCE SC)tl'E'1I 406.09 FEET, THENCE EAST 4555.09 FEET TO TElli TRUE. 1'OIN'I' ('1:' BEGINNING SECTION 25: E1/2 El/2 SECTION 33: 145.1/4 1451/4 SECTION 14: 1;I/2 NWI/4, F.1/2 NEI/4, /' /2 1';I/4, SECTION 1 2 /, /_ ,:fil AND Itl .15: ti / N'.%1/4 AND SEI/4 N'.il/ti, ALT. Tiii: ABOVE 0:15011107.0 PEEPERTV IN TC;1113HEIP 47 NORTH, I:ANSE 7 WEST, NEW MEXICO PRINCIPAL. MERIDIAN AND LYING TN G(JNNISON, MONTROS E O(,::AY COUNTIES, STATE OF CO1.0!:ACO. 1111111111111111111111111111111111111111111111111111111 535560 11/17/1998 04:02P B1098 P620 M ALSDORF 4 of.4 R 30.50 D 0.00 GARFIELD COUNTY CO • 19981197769 M ARTICLES OF ORGANIZATION 5C. 00 SECRETARY OF STATE INTERMOUNTAIN RESOURCES, LLC 11-05-1998 11:43:33 The undersigned natural person of the age of eighteen years or more, acting as organizer of a limited liability company under the Colorado Limited Liability Company Act, adopts the following Articles of Organization for such limited liability company (the "Company"). FIRST: The name of the Company is: Intermountain Resources, LLC SECOND: The Company is organized for any legal and lawful purpose pursuant to the Colorado Limited Liability Company Act, as amended. THIRD: The name and address of the initial registered agent and registered office of the Company is: J. D. Snodgrass Williams, Turner & Holmes, P.C. 200 North 6th - P. O. Box 338 Grand Junction, CO 81502 A written acceptance of appointment as registered agent accompanies these Articles of Organization. FOURTH: Management of the Company shall be vested in the members. The names and addresses of the initial members are: McDougal Bros. Investments, a partnership 38437 Dexter Road Dexter, OR 97431 FIFTH: The name and address of the organizer is: J. D. Snodgrass Williams, Turner & Holmes, P.C. P.O. Box 338 200 North Sixth Street Grand Junction, Colorado 81502 Dated: November 4, 1998 E:\JOS\INTERMJT\RESOURCE\ART-ORC.WPD Christopher C. Meyers P. O. Box 670 Montrose, CO 81402 November 4. 1998 CONSENT OF REGISTERED AGENT The undersigned hereby consents to appointment as the re • stered agent of Intermountain . Snodgrass Resources, LLC. - E:\JDS\INTER'I'\RESOURCE\ART-ORC.NPD 2 — M!November 4, 1998