Loading...
HomeMy WebLinkAbout1.0 ApplicationProducers gg - PAID UP Revised 1611111181111193 11111111111111111161.171511R1111111 686001:OSP 81662 ORF 1 of 4 R D 0.00 GHRFIELD COUNTY CO PAID-UP OIL AND GAS LEASE • AGREEMENT, Made nod emtaod into dee 16th day of November . 200 4 , by and between Howard Robinson dk/a Charles Howard Robinson a/k/a C. Howard Robinson, and Clarice Jane Robinson AKA Clarice J. Robinson, as tenants in common P.O. Banc 1185, Rine, CO 81850 Antero Resources II Corporation whose eddied is , haeim.aer called Lear (ethane one or mote) and Mose address's 1625 171k Street, Suite 300, Denver, CO 80202 hereinafter called Laser WITNESSETH, That the Leave, for and in consideration of TEN AND MORE DOLLARS (910.00+) rash in hand paid, dee receipt of which a hereby ecknowlediod, and the covens' and .grelmres henbanes ms.ioed, has massed, demised, leased sad la, and by thin premed den grant, demise, has and lot cadoaively sem the mid Lere , the land bre nam dmtLed, with the =nave right for the papers of drains, ming, exploring by geophysical and other methods, and opening for and producing thank= of and a8 ps of w$rboever ams or kind, specifically inducing malted u«hens and any and a0 auhelences produced in daocietioo therewith hot coal -(wrap bbrmsiorq .. _ . C, - • , . _ .:. .. _ .. . _ . padaen, all that certain tract of land situated in die County of QOM Sad of 5a deserfted es follows, to -wit See Exhibit "A" attached hereto and made a part hereof There will be no surface otxupancy on this lease. together with any reversionary rights therein, and together with al trips or pacers of land, (no, however, to be mnotraed to include pinch comprising a regular 40 -nue legal subdivision or lot of approximately corresponding sot) adjoining or cootiptons o the above described land and owned or claimed by Lessor, and co1.iai.g 41.85 saes, more or Ices. I. It is agreed that this lease shall remain in face bra to. of fires (3) yyeoa.tss from draga8mr as cad or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled thacwilh, or drilling operations in continued as Faremaft« provided 1i; et the expiration of the penury tee of this Ian, oil or ger is pot being produced on the leased premiss or onacnage pooled therewith but Lessee is tarn ea m ears a re -working operations continue in tree so long a operations an being continuously psoseadod on the lased peonies or m� led �4 ohm this lease o he continuously prosecuted if not more than n' amen& o. th.14 She red operations shall be orteconsidered to o maty (90) drys shall elapse between the completion or abandonment of ms well and the begipeing of mention for the drillkg of a subcegnat well. If ante dhloowry of oil or ger on said Ind or on adage pooled therewith, the pruduction thereof should anis from say came alba the primary term, this las shall not terminale if Lawn commerce additional drilling or r.-wocdng operations within =ay (90) days nom dale of eesamion of production or from date of completion of dry hole If oil or ger shall be d'meovered and traduced as a molt of such opasti0ns at or after the expiation of the primary tote of this lease, this lease shall conteme in 8moe so long es of or ger is produced from die leased or on acreage pooled therewith. In the event a well or welt is filled and sad m the lands, or ce the lands Fooled thesewith, for the papas of developing calked ps, the word 'operations" shall mean, in addition to those masers covered in the ov edi% paragraph. (I) operations of said welt to remove watts or other maims Bou the called, or to dispose of such water a other sabpasoes, ova though such operations do not rims in the production of hydrocarbons in paying qusrtiting or (2) shutting -in or otherwise discontinuing production from said wells to allow for mice or underground mining.ffect(ag the drtlad err wellbsee. 2. This is a PAID-UP LEASE. In mnsideratos ofthe doom ooh payment, Lessor agrees that lame shall not b obligated, except u otherwise provided been, to commence err continue any operations during the prlohary term. Leone may at any time or times during or after tie printery tem awarder this las a to all or any protean of mid l.d and as o any lamb or ermine by delivering to Lana or by tang for mead a cola's or reresse& and be relieved of ell obtipaos thereafter accruing as to the acreage surrendered. 3. is consideration of the premises she said Lessee commis and agrees (See Addendum attached) la To deliver so the credit of Lesser, free of cot, in the pips Ione to which Lena may connect wells on said Wel, the equal eighteen percent (18.00%) pat of a8 of produced and saved from the leased premien 2nd To pay Leaner on ger and asilta tiod ger produced from said lad (l) when sold by Lena, Witaatl Decent (18A0%) of the net proceeds derived from such de or (2) when wed by Lamm off mid lad or in the0310163013/11 of ®. or other sicintean Decant (18.00% of such Its 1 the market value, t the mouth of de well, of e n sad such ps gas, gheeds intense 51 eithercam, to bar !(dad prcn HUM) of 0o cost of compression debydr.lirg and otherwise nation such gots a asiaglhv.d ps b reeler t marketable a tmM. and Ogren Decant (j &0096) of the 00.50(918380,9.14 trampostie9 such ps and asaighead ger from the mouth of the wen to the pont of sol a use. 3rd To pry Less nos ger podamd 8m any of well and used off the premium or in the manufaxae of gasoline or any other product, a royalty of 4jgtASKjr percent (1&00%) of the pmooa4, at the mouth of the well, payable monthly a the prevuling market rata 4. Where ps from a well arable of producing ger is not sold or used, Less my pay or rands as royalty to the royalty ewe's One Dollar per year par net acre retained hereunder, such payment or trader to be made on or before the anniversary dale of this las nem e0sumg Eder the expiration of 90 days firm the dab such well is shut in and thereafter on or before the «mivmsry date of the las riming the period such well is shot in. Usuch payment or taloa is made, it win be considered that ps is being (induced within the mining of this sedan. 5. If said Lessor owns a 1era Mcrae is the above d ibd lad then the edeas and undivided Ike simple estate therein, then the royalties (including any shut-in ger royalty) herein provided nor shall be paid the Leas arty m the proportion which Leers inset bears to the whole and undivided fee. 6. Lessee shill have the right to tea, free ofcoq gat, .l and Weller produced on said land fir Le'ase's operation thereon. 7. What requested by Lasa, Lasa still bury Lcame's pipeline below plow depth. 8. No wed shell be drilled mar dm 200 feet to the house or bra mow on said premises without wriata consent of Lessor. 9. L. shall pay for damage caused by Lessee's operrms to growing crops on said land 10. Lessee shall have the right .I any time to remove .11 nteinary and fixtures plead on sod panne', irfud..g de right to draw and remove cuing. 11. The rights of Las and Lome hereunder may he assigned in Mon or part No chase b ownership of Lessor s iteret (by assignment or otherwise) shall be binding on Levee until Lana hes been furnished with notion, canna* of c rtified oopis of as recorded instruments or documents and other inbrmatim necessary to establish a complete chain of record tide from Lessor, cad then only will respect to pynion therm8er made. No other kind of notice, whether actual or constructive, shall he binding on Lesser No pert or future division of Lessor's ownership a 10 diBaet portions or arab of said lad shall operate to enlarge to ob(iptioro or diminish the rights of Lessee, and a0 Lessee's operations may he conducted without regard to any such division. If .11 or any pat of this lease is a no leasehold owner shall be liable for any act or omission of any other leasehon owoer. 12. Lax, at is option, is hereby given the right and power at any time and foot time to time as . remoras right, oidia before or .der production, a to all or any put of the land described herein and as to any one or more of the form.tirm hereunder, to pool or unbar the 1.80.14 estate and the mineral estate covered by this Tear with other land, los or bum in the idmed ele vicinity for the production of of and gas, or segs mWy for the Reduction of ether, who in Leon's' it n necessery or advisable b do so, sol irrespective of whether authority amla 0, 8i. exists with ..putt to such other land, (ease or leases. Likewise, omits pevquly formal to include formations not oil or ps, may be reformed to exclude such nos -producing 800,.11000 The forming or rimming of any unit shall be .ocomptished by Lena executing and filing of mead a declaration of such enthusiast or reformation, which declaration shall describe the unit. Any unit may include land upon which a well los theretofore been completed or upon which operations for drillig have twem8e been comma ed. Prod:mam, drilling or reworking operations or a well shut in for went of a market anywhere e a unit which includes dor ■ pert of this lease shag be treated as if it were produaion, drilling or reworking operations or a well shut in for want of . market under this lase. In Iia of the royalties ehewhere herein specified including shut-in ps ruyahia• Lessor shall receive on production from the unit su pooled royalties only on the portion of such production allocated to this lase: such .Llootioe shat be tot proportion of the .nit production t), the total ameba of surface acres covered by this lease and lactated it the unit ban to the Mal number *Inane scree in such unit In addition to the foregoing, Lessee shall have the right to tante, pod, oe combine all or any pan of dm above described bods as to one or 04310 of the fameti.m tremolo with other lands in the sen: general arm by ,mixing into a cooperative or snit Folio of development or operation .ppovd by any sovammrnal authority .0d, from time to tn.., with Ilse approval, to modify, change or terminate any aide plan or agreement and, ie such even, the teams, conditions and provision of this Ione shell (a deemed modified to confutes to dm teams, dadiuoa, and provision of suck approved cooperative or unit plan of development or oprstion and, particularly, all drilling ed development requirements of this lase, or ins compliance with the dulling and devebpmat requirements of such prem or agreement, and this luso shall not Wm®le a express diad, h plan o aga6ed by In the event that said above dumbed leads or try Fen thereof, shall bomber be operated node any such or unit ot the lilt of such plot a agramae production therefrom is allotted to different c�paamv a development of I. a operation a uelty t' f porticos of the land cored by said plan, tion the production alocredero any particular ma of hold shall, at the pmpor of computing the royalties to be paid hereunder to Lager, be regarded as having bens produced from the particular tract of land to which it is allocated and not to any other tract of land; and the royalty peyme is to be male hereunder to Lessor stall be based mon production only as so allocated Leta shall formally expos Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental g ty by essuti.g the same upon request of L epee. 13. When operations or production are delayed or otarupedby lack o(w.tu, labor or u.fau, or by fire, storm, flood, sea rebellion, immectioo, riot, strike, differences with workman, or Iirlmn of ornate to furnish 31190/0/100 famish. facilities for m..pordtite or lack of market in the field for the maids produced, or as a result of any aux whatsoever beyond the mmol of Lessee, the time of such delay or interruption shall not be counted against Lasa nod this lase shall remain in race during (`D such any or interruption sal ninety (90) days thera8er, anything in Chit tear to dee contrary notwithstanding , ) , 14. Lessor herby warrants and agrees to defend tie tide to the lands herein described, snd agrees that the Lome shell have the right at any time to !edam for Lessor, by payment, any emsemagea, taxa or other liens m the above demented hinds, in the event of default of pay mea by Lessor and be subrogated to the rights of the holder them& and the ander i Larom for th®tdvas and tits Yds, successors and .mipm hereby wrratdur .d release .11 right of dower .d homestead in the monism described herein, ianfar u mid right atlases sad homestead may is any way affect the purposes the which this lease is made, as recited harm 13. Should any mea more of the parch bereirubore tamed as Lemur fel to =eons this lease, it shall ttevertbdeas be binding upon all such ponies nbo do aceanc it as Lear. The ward "Lesser," as used in this tae shall mean say mea more or all of the patties who croaue this lease as Lamar. All the provisions of the lease shall be binding as die hare saczzmoa and admen of Leaner ed Lamm. 16. Lamer agrees that icem nay loots a well re weds as any drilling ase leased any part of the Med described hack, mag to rent b a subwaboa eaxmest through any part Mae land described herein, which wells will be used to scans the subsurface of adjoining mineral owoars 17. Notwit14..dieg anything to the canary amused brain, Lenz has the aptioa b amend the primary tam n additiaaal we (1) year with the payment Man amount equal to _ICI_ per net acre, arch unmet being paid to Lose on or before da expended of the primary tam set Ranh ahem is paragraph L Suds payment shall be mnadmed teederd by Leave and received by Lamar vibes deposed, postage -paid, is the United Sams mad, or with . aannually rmopited carrier service 18. See Addendum attached. IN WITNESS WHEREOF, this immune* is a recused as of the due fun above written Ralgraton Ws Charles Howard Rabinsart Ws C. Hogged Chaioa Jam Ro*Yran J. Robinson STATE of Colorado ACKNOWLEDGEMENT -INDIVIDUAL COUNTY of `' / i/ / BEFORE ME, the rniiidaxigs ed, a Nofad foe Public, in mid County and m Sate, the / S �(G-dry of a �✓k,7 ✓ I L''ej .200 4 personally append Howard Robinson wl /a Charles Howard Robinson a/k/a C. Howard Robinson and Clarice Jane Robinson a/k/a Clarice J. Robinson , to me known to be to identical person s , described in and who executed the widen and foregoing instrument of wasting and ritmwledt tad to me tat t he duly executed flea and voltmmry art and deed fr the usa.d purpo es therein set forth and in the ity state J thaek, IN WITNESS . -a F, I have hereunto ser my lad and affixed my notarial sal die day and year last sane as their My Commission STATE of COUNTY of BEFORE ME, the undersigned, a Homy Public, in ad for said County and Stare, on 0.a day of , 200 2,00 Public: Aadrag 6 GruenActe ACKNOWLEDGEMENT-INDIVIDUAL personally appeared 10110 k00*n to be 11.. identical person _ , drmbd in and who accosted the within and Ixe$a tti inerument of writing and acknowledged to ren that _ h. _ duly executed tmae as free and voluntary as and deed Or the uses and putpoms therein set bah used in the capacity .mid therein IN WITNESS WHEREOF, 1 have become .et my hand and Mihail my newel mal the day and year last above swilh+1. My Commission Expires Notary Public Address: After recording smarm to: Tatham Lend Committees, Inc 770 Rock Caen Rd. 1117 Norman, OK 73069 11111111111111111N 1111111111111111111111111111 III1 1111 26of 4 R 21.00000 00OGPRFIELD COUNTY �SDORF • • 111111111111111111101111111111111111111111111111111 •• 668608 02/14/200"5 01:8BP 81662 P671 11 RLSOORF 3 of 4 R 21.00 0 0.00 GARFIELD COUNTY CO ADDENDUM THIS ADDENDUM constitutes an integral part of that certain Paid -Up Oil and Gas Lease dated the 16th day of November, 2004, by and between, HOWARD ROBINSON aka CHARLES HOWARD ROBINSON aka C. HOWARD ROBINSON and CLARICE JANE ROBINSON aka CLARICE J. ROBINSON, as tenants in common, as Lessor, and ANTERO RESOURCES II CORPORATION, as Lessee. THE PARTIES FURTHER AGREE as follows: 1. The following teens and conditions of this Addendum shall supercede and take precedence over any inconsistent or conflicting preprinted provisions of the foregoing Paid -Up Oil and Gas Lease. 2. No well, road, pipeline, structure or other surface facility of any kind shall be upon the Leased Premises. No entry on the surface of the Leased Premises shall be permitted and only pooling and directional drilling from neighboring lands shall be utilized by Lessee to exploit the leased mineral rights. 3. Producing wells or shut-in wells shall hold this Lease beyond the primary term only with respect to that part of the Leased Premises committed to the unit or pool in which such well is located or otherwise included in the spacing unit prescribed by governmental authority within which such well is located. 4. Lessee shall permit no well to remain shut-in during the primary term or thereafter for more than eighteen (18) months. 5. For purposes of determining the royalty payable to Lessor under paragraph 3 of the Lease, Lessor shall, in no event, bear any part of the costs and expenses of production, gathering, dehydration, compression, transportation, manufacturing, processing, treating or marketing of the oil, gas or gas products produced from the Lease Premises or any part of the costs of construction, operation or depreciation of any plant or other processing facilities or equipment, wherever located. Dated this 16t day of November, 2004. I�oward Robinson, aka Charles Howard Robinson, aka C. Howard Robinson n Clarice Jane Rbbinson, Clarice J. Robinson CFRONT DESK /C1iant aoe_o.onR.ntero/aoc/Add.nm:....pe ANTERO RESOURCES II CORPORATION By: ,Title 111111111111111111111111111111111111111 111 11111 IIII 1111 668608 02/14/2005 0105P 61662 P678 11 pLSDORF 4 of 4 R 21.00 D 0.00 GARFIELD COUNTY CO EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL AND GAS LEASE DATED NOVEMBER 16, 2004, BY AND BETWEEN HOWARD ROBINSON A/K/A CHARLES HOWARD ROBINSON A/K/A C. HOWARD ROBINSON AND CLARICE JANE ROBINSON A/K/A CLARICE J. ROBINSON, AS TENANTS IN COMMON, LESSOR, AND ANTERO RESOURCES II CORPORATION, LESSEE: DESCRIPTION OF LANDS: Township 6 South. Ranste 92 West. 6t11 P. M. All that part of the S 1/2S W 1/4 and SW 1/4SE 1/4 Section 5, also all that part of Lots 2 and 3, Section 8, all in Tp. 6 S., R. 92 W., of the 6* P.M., Tying northerly of the present U. S. Highway No. 6 and 24, and southerly of the Ditch in use, known as the Cactus Valley Ditch, described as follows: Beginning at a point on the Easterly line of said SWI/4SE I/4 of Section 5; whence the South East comer of said Section 5 bears S. 83'57'E. 1348.03 ft.; thence S. 282.7 ft. along the easterly line of said SWI/4SE1/4 and the easterly line of said Lot 2 Section 8 to a point on the Northerly line of said Highway; thence N. 83'17' W. 615.9 ft. along the Northerly boundary of said Highway, thence N. 88'00' W. 849.2 ft. along the Northerly boundary of said Highway, thence N. 87'59' W. 1436.8 ft. along the northerly boundary of said Highway, thence N.33'48' W. 538.4 ft.; thence N. 57'40' E. 116.0 ft.; thence N. 46'39' W. 132.46 ft.; thence N. 80'49' E. 20.0 ft'_; thence S. 89'54' E. 11.48 ft. to a point in the center of said cactus Valley Ditch; thence N. 85'3 l' E. 524.82 ft. along the center line of said ditch; thence N. 81'22' E. 183.64 ft. along the center line of said ditch; thence S. 7T34' E. 378.49 ft. along the center line of said ditch; thence S. 57'56' E. 157.74 ft. along the center line of said ditch; thence 74'48' E. 376.49 ft. along the center line of said ditch; thence S. 82'45' E. 397.35 11. along the center line of said ditch; thence S.59'47' E. 302.54 ft. to a point in the center of said ditch; thence S. 67'48' E. 847.42 ft. along the center lime of said ditch; thence N. 71'27' E. 218.0 ft. along the center line of said ditch; to a point on the easterly line of said SW 1/4SE 1/4, the point of beginning. Containing 41.85 acres, more or less. .Lessors herein intend to lease any right, title and interest Lessors may have in and to any and all mineral rights an, in and under any and all streets, county roads, highways, railroad strips and/or any and all other easements and rights of way whatsoever, canals, ditches and other waterways lying across and/or adjacent and/or in any way appertaining to the lands hereinabove described, including without limitation any lands acquired by accretion through meander of waterways. SIGNED FOR IDENTIFICATION: • Howard Robinson Charles Howard Rpbinson a/k/a C. Howard Robinson X: / , h.c. s.ri _ A . _._ aG � oZ,_, Clarice Jane Howard a Clari • J. Robinson • • 111111111111 1111111 1111 111111 11111111FL 1111 1111 ,dae Pera gg _ PAID UP 668877 02/17/2005 02:23P 61663 P r AL SDORF 1 of 3 R 16.00 D 0.00 GARFIELD COUNTY CO Revised PAID-UP OIL AND GAS LEASE AGREEMENT, Made and aced into the 19th day of November , 200 4 . by and between Alvin W. Woody, a marled matt dealing in his sole and separate property 0545 County Road 352, Rifle, CO 81650 Antero Resources!! Corporation whose address is , heradmri called Lessor (whether ate or more) and whose Odom n 1625 17a' Street, Suite 300, Denver, CO 80202 hereafter caned Leases WCTNESSEfH, That the l.e om for and a ooasdentia. of TEN AND MORE DOLLARS (S10.00+) cash m baud paid. the receipt of which is hereby dknnedpd and the caveame and apeone.b beteioder mnnian , has ptaad, demised, triad and let, and by thee prams dos put, demes lease and Id c.cusivety neo the mid Lessee, the lad hevinf err des deed, with the oadtaove right for the papaw of dn111os, rosiest. expert by geophysical and ocher needed., and operating for and roaming therefrom off and a0 gas ofiOutwear arae or kind, specifically schidst coalbed methane and any and all obs a.ca produced a asaoeiation therewith from co log formations, with rights of way and easements for roads, layog pipe Isis, mod ere aide of erector= theme to produce. ave and take cam of said products. a0 that envie trau of land Meowed in the Comity of GI6edd Sate of (Q, demand as follows, to -wit See Exhibit "A" attached hereto and made a pert hereof together with any reversionary rights thereon and together with .0 strips or parcels of Wed (rot, however, to be construed to include parods comprising a regular 40 -ace legal subdivision or lot of approximately corresponding size) adjoining or codipwu to the above described lend and owned or claimed by Lessor. end croainig 41.85 nae. more or less. 1. k is speed dot this leas shall roman in force for a term of three (3) yeah an long thereafter as ed or pin of whatsoever mime or tied is produced front said leaved premises or oe acreage pooled therewith, or drilling operations are continual as hereinafter provided. If at the tarpons of the primary arm d this lease, oil or gas is not being produced on the leased premises or on.ataaemapp pooled d oewih but Leine is thea engaged in dolling or re-workiy operstios thereon, then this lease eh.e eomimle in force as long as operatiar are being mniiwou ty praneated on the logged premeds or on .vaop peaked therewith: and operations shall be considered to be coarauously promoted don mare then ninety (90) days shall clapan between the moieties or abandonment of me well .ad the being of operations for the dllmg of a subsequent well If after Oligopoly of on, or gin on said land or on garage pooled therewith, the produ tin thereof should cane Bon any cause .l rhe primary torn, this lease shall rat esaaate if Lessee commences addition* drilling a .n+.wsksg cape tiros within ninety (90) days from dam of location of p rodartin or from tale of completion of dry hole. If oil or pin shall be discovered and produced as a rant of sorb amnions et or abet the someone of the primary moos otitis lana the leas shall comms m force so long as on, or pis is produced from the leased nemeses or on .none pooled therewith. In the event e well or wells is dolled and completed on the lauds, a oe the Wes pooled therewith, for the purpose of dovdopng coalbed gun them word -oprrstios" shawl mean, in aelditioe to those menses covered m the awed* pennon . (1) ope1nione of aid wefts to remove web a tabor substances from the coalbed, or es dispose of such weer or odor substance, even though math opaeioas do mit rook m the production of hydronrbses in mine quareitien or (2) shuning-m or otherwise damoimine p.obcdon from said wails to allow for maw or underground mining meting the dnllsiae or wellbore. 2. This is a PAID-UP LEASE. In cosideotin of the down cash penned, Loma agrees the Lowe shell not be obligated, except as otherwin provided herein, to commence or continue any operation daring the primary tam. Lessee rosy at any time or teas during or filer to pr®dy corm surrender this kine s to an or any portion of aid land mid as to try aaau or stratum by delivering to Leta or by filing fir mord s release or releesen, and be relieved of all obligation therrder accruing as to the tamp surrendered 3. In consideration of the premises the said Lean mvmaes and apnea: 1 st To deliver to the adit of Lessor, five of coat, in toe pipe lime to which Leas may noshes wefts n said and, the equal Mardian =an (17.0496) p 2d Tolay Leer producedert dell oil . s anemir:oad d p taohoced hand saved from the leased orn said bind (1) when old by Lowe, sNMenteen Offal* (17.00%) or etc res proceeds derived nom rade ale or (2) wbee used by Lena off aid had or in the m®Scriws ofgasoline or other probes, the market value, at foe mouth dshe well, of get teen mart 117.00%) of arch pis and casinghead pr, Leds's uasrt4, in either ase, to bear sOMerte n =tent (17.W%1 of the coot of comgsadmg, dehydrating ad otherwise treating such gas or aumghead pin to reader it makable a usable ad Stere lta n DOGIK 117.0095) of the cost of plating and transporting such pin ed casinghead gas from the mouth odds well to tin pont of ab or use. 3r1 To rpesYy Lessor sir pa produced from any off odd sod uad of the psemirs or in the m outhabre of polio or any other product, a m yahy of ttavetlteen Derma (17.00%) ortbe proceeds, at the mouth of the wdk payable money re the prevailing market ram. 4. Where gas from a well made of p.odaci g gm is not sold or used Lessee into FM or tender ot roydsy to the rrryaley owners O.e Whir per Mr seer net goo remind hereunder, sorb payment or tender to be mode on m bmf we the asoivase y deo of Obis Was neat cowing Ater the ogv.tioo of 90 days ion the dos such well is Soo in and thereafd an or belie the anniversary dote ofthis tense doing the period ash well is slwrt in. Ir such payment or tender is made, 11 will be considered abet pa o being produced within the resoimg of the lase 5. if said Lessor any a Ie amen in the above deaerhbd lad than the entire and undivided the shore estate therein, Wes the royalties (mdeding any shut-in gas royalty) herein provided for shall be paid the Lessor ody s the proportion which Loser's interest boos* the whole aid undivided fee. 6. Lease shag have the ri'gkl tome, he aeon, pa, al nod weer produced on aid land the Lessee's operation thereon. 7. Who requagd by Lessor, Lessee shall bury Leon's pipeline below plow, dcptx. 8. No well shall be dried mow the 200 fat to tha hoe* or horn now on said promises without written censers of Leser. 9. Leas shill pry 6r damages mrd by Lane's operations to growing crop on aid hod 10. Less, shall have the rights ay time to remove a11 marhimay and fixtures placed no said premises, i* lading the right to draw and remove cunt'. 11. The rights of Lessor and Lessee brads may be asigaed in whole a part No change in ownership of Lessor's Owen (by usigm■ea or otherwise) shall be binding on Leasee uma Leasee hu beat furnished with notice, toeasting of certified copies of all recorded iukamans or dominion and other information necessary to csablish a complem chid. of record title from L. and thea only with respect to pyusvb thereafter made. No other kind of notioe, whether ado] a tmstrneuve, shall h boding m Leda. No present or furore division of Laser's ownership as to oh fthrcat portion a porch of said aid shell operate to oHrge the oUiptios or divueish the rights of Lessee, ed nit Lessee's opssatios may be conduced without regard to any such division If all or tiny on of this *ane is 'sniped, on Iradold owner shall be liable for any as or omission Jany tether leasehold owner. 12. Lsse, et as option, a hereby given the riga and power at any One end nom time to time u a mourns right, Ober before or after proctoaies, as to all or 'gay pat of the herd described herei. and u to any one or moss of the forseation hereunder, to peal or mina the leasehold estate and the mimed cote covered by this leas with sober lee lease a lee in the immediate vicinity fix she prod ere dog and gat, or dpamsy tb the production of either, when a Lease's judgement it is necessary Of advisable to do an, and irrespective of whaler authority Otithr to this exits with raged to such other heed, lease or lata Littman, oris previously formed to mdmde formations not producing oI or gin, may be redwood to cache& such coo -producing Emotion: The forming or reforming of any unit .10111 be accomplished by Lessee executing and filing d record a decl.ntin of such rmit1tion or reformation, which declaration shall describe the nit Any unit nay Oracle Ind upon which a well hs theretofore ben completed or upon which opuatios for drilling have theretofore been cvonnemeed Pmd.aion, dolling a reworking operation or a wen she in to want of a market anywhere on a unit which include all or a part of this lean shall be traced as if it wore production. dnhlmg is remit ing op.ea a well shut in for want of • marker under this lease n d th In lie royalties elsewhere herein specified, including Aron gas rookies, Low nal receive n po1aiion�fror the wit so pooled royalties only oo the portion of such production n to this leases sock allocation shill be that proportion of the unit production slat de ted number of ogee acres xwvered by this Vox .d included in the ora tsars b the real masons of wince atm in such imit In addition to the foregoing. Lane shall have the riga to wain, pmt, or combine .11 or any put of the above ds ribal bola as to one or more of the lunation Ih .ender with other ands in the an.. gesmd aro by eserhg use a cooperative or wait pian of development or operation approved by any governmental authority ad, from time to time, with the approval, to modify. Menge or terminate my such plan or apeeseem and, in such event, the terns, conditions .d provisiara of this lase Mall be deemed modified to conform to the emµ conditions, and provinces of such cooperative a unit plan of development or operation and, IaR;wntry, at drilling ad development requirements of this lase, expose or implied shall be by compliance with the drilling and development requirements of such plan or .peeme t, and this leas shall not terming: a expire during the of a ofsuch plan or agreement. In the eves rhe said shove described lands or any part thereof sag hda*a to operated under any such cooperative or unit pan ofdwelopmnt a operation whorby the production dumdum is allocated to different portant of the laird oosvered by said plea, then the produdioo .11ocamd to any particular tract of lord sink for the Orpce of competing the royalties to be paid boeuder to Loot, be rryudd as hvig been produced !lana the onions/ tract of lord to which it is allocated and not to any ocher moa of hod, and the royalty pmymoe to be made hereunder to Lessor shall be based upon production only as an moused Leer shall formally express Lssr's women to any cooperseive or mixt pan of development or operation adopted by Loss and approved by any governmental easy by ecemimg the amu upon spins ofLame. 13. When operations or production .R delayed a interrupted by lack of water. labor or material or by fire. nam, good or rebellion, asmatiat, riot, nolo, differerca with wahmet, or (slam of acids to furnish trspat or furnish *edifies for tr.mporutn or lack of narket is the ted for the mirerals produced, or as a rock of aro, mos whatsoever beyond the coned of Lases, die time of such delay a imamyeio m shall not he wood against Lessee and dun lase shall remain in bore during such dello or asanpion and ornery (90) days throatier. anything m this lease to the contrary notwitheonding. 14. Lessor hereby warrants and agrees to defend the tide to the lands have described, and agrees that theL shall nave the right attime for Lessor, by payment, any morasses, , taxor other liens m the above described lands, in dm emit of default ofpayment by Lessor and be R to the of the bolder thereof and doe undersigned Lessees, for themselves and the heirs, snncoesman and assign, hereby surrender and rebase all right of dower and homestead m the premises described hereon insole an mid nOt of do.mr and homestead may m say way meet the moonset for vshirh this lei is made, as recited herein. 15. Should any one or more of the patio hseioabove mused as lessor lel to exam this lent, it shill nevertheless be boding upon ad such pones who do execute it as Lessor. The word -.team,- as toad in this lose shell mean any ane or mote or all of the patties who execute this lease as Lessor. Al the ptovisiom of this lease shall be binding on the bels, successors and asks of Lessor and Lessor 16. Leone egret tht Leases may Iotas ■ well err wills an any drilling site berate any pad of the land deeertbd Punted iodudog the right to a sebearboe memos through say put atilt had desatbed heroin. whti3 was will be used to soon the atimerLoe of adjece t mineral aw'ers. 17. NalwilhYtlmg anything to IIs contrary centesimal lemma Losse hes dm option to extend the primary tam an eddiuood one (t) year with the payment of an amus equal to per net sate, ■ ds mama heirs paid b Leser an or helore the orpiatim of the: printery term set forth above pitapat' I. Sod payment shad be considered warted by Lessee and received by Leser when deposited, pottage -paid is the United States mil or with • nationally recognized crier service_ IN WITNESS WHEREOF, this instrument is executed as of the dale fast above written. Alvin W. Woody U STATE of Colorado COUNTY of GC.I TwLl BEFORE ME, the undersigned, a Nagy Public, in and for said Comfy sad Sore, on this personally appeared Alvin W. Woody ACKNOWLEDGEMENT -INDIVIDUAL day of N/ o ,200 4 , to me known to be de identical Arson ✓ , described in and who executed the within and foragoiag instrument of writing and a#mwledged to me that _ he _ bah' executed same as 1113 frac and valuosry act tied deed for the uses and purposes these' set forth and in the npaciy stared therein. IN WITNESS WHEREOF, l have hereunto set my bad and alined my notarial sed the dry and year Last above written. My Commission Espies: STATE of COUNTY of ft, ' :r i:,sslon Expires 08/02/2008 Notary Public: Address: ACKNOWLEDGEMENT -INDIVIDUAL BEFORE ME, the undersigned, a Notary Public, fa and for said Cowry and Sant:, on this day of . 200 personally appeared ,tomeknown tobethe identical person _ , desrrbed in and who eseeated the within nod fonegaing ostreasmt awning and acknowledged to me that _ be _ duly maned same as Gee and voluntary act and deed for the use sad pspov therein ser forth and o the apaciy steed therein. IN WITNESS WHEREOF, I have hemlines ser my hand end affixed my aotsoiil sal the day and yew last above seinen. My Coven lesion Eoires Aber recording return to: Techasa Lad Coaadaon, Inc 770 Rook Creak Rd. 0 117 Norman, OK 73069 Notary Public Addicts: 111111111111111111111111111111111111111 III 11111 1111 111 668877 02/17/2005 02:23P 81663 P778 N fLSDORF 2 of 3 R 16.00 0 0.00 GARFIELD COUNTY CO • • IVIITERIRI111114111111Y111,1111011111 P7, ALSDORF 3 of 3 R 16.00 D 0.00 GARFIELD COUNTY CO EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL AND GAS LEASE DATED NOVEMBER 19, 2004, BY AND BETWEEN ALVIN W. WOODY, A MARRIED MAN DEALING IN HIS SOLE AND SEPARATE PROPERTY, LESSOR, AND ANTERO RESOURCES II CORPORATION, LESSEE: DESCRIPTION OF LANDS: Township 6 South, Ran= 92 West, 6o P. M. All that part of the S1/2SW 1 /4 and SWI/4SE 1/4 Section 5, also all that part of Lots 2 and 3, Section 8, all in Tp. 6 S., R. 92 W., of the 6“' P.M., Tying northerly of the present U. S. Highway No. 6 and 24, and southerly of the Ditch in use, known as the Cactus Valley Ditch, described as follows: Beginning at a point on the Easterly line of said SWI /4SE 1/4 of Section 5; whence the South East coma of said Section 5 bears S. 83'57'E. 1348.03 ft.; thence S. 282.7 ft. along the easterly line of said SWI/4SEI/4 and the easterly line of said Lot 2 Section 8 to a point on the Northerly line of said Highway; thence N. 83'17' W. 615.9 R. along the Northerly boundary of said Highway: thence N. 88'00' W. 849.2 R. along the Northerly boundary of said Highway; thence N. 87'59' W. 1436.8 11. along the northerly boundary of said Highway; thence N.33'48' W. 538.4 ft.; thence N. 5T40' E. 116.0 ft.; thence N. 46'39' W. 132.46 ft.; thence N. 80'49' E. 20.0 R.; thence S. 89'54' E. 11.48 R. to a point in the center of said cactus Valley Ditch; thence N. 85'31' E. 524.82 ft. along the center line of said ditch; thence N. 81'22' E. 183.64 R. along the center line of said ditch; thence S. 77'34' E. 378.49 R. along the center line of said ditch; thence S. 5756' E. 157.74 ft. along the center line of said ditch; thence 74'48' E. 376.49 R. along the center line of said ditch; thence S. 82'45' E. 397.35 ft. along the center line of said ditch; thence S.59'47' E. 302.54 ft. to a point in the center of said ditch; thence S. 67'48' E. 847.42 R. along the center line of said ditch; thence N. 71'27' E. 218.0 ft. along the center line of said ditch; to a point on the easterly line of said SW 1/4SE 114, the point of beginning. Containing 41.85 acres, more or less. Lessor herein intend to lease any right, title and interest Lessor may have in and to any and all mineral rights on, in and under any and all streets, county roads, highways, railroad strips and/or any and all other easements and rights of way whatsoever, canals, ditches and other waterways lying across and/or adjacent and/or in any way appertaining to the lands hereinabove described, including without limitation any lands acquired by accretion through meander of waterways. 1111 F.1 11461,r,ahfill MSI 111 Reception#: 718230 03/02/2007 03 36.11 PM B 1899 P Jean A1berico 1 of 3 Rec Fee:$16 00 Doc Fee:120.k, GARFIELD COUNTY CO • c WARRANTY DEED CHARLES HOWARD ROBINSON and CLARICE JANE ROBINSON, P.O. Box 1185, Rifle, Colorado 81650 ('`Grantors"), for One Million Two Hundred Thousand Dollars ($1,200,000) and other good and valuable consideration, in hand paid, does hereby sell and convey to DONALD R. ZIEGLER, whose address is P 0 Box 2810,G1 enwood Springs CO 81602 ,/i O,11GbiOf dd /Filk q' ("Grantee"), the following described real property situate in the County of Garfield, State of Colorado, to - wit: All that part of the S'ASW'/4 and SW'/4SE1/2 Section 5, also all that part of Lots 2 and 3, Section 8, all in Tp. 6 S., R. 92 W., of the 6th P.M., lying northerly of the present U.S. Highway No. 6 and 24, and southerly of the Ditch in use, known as the Cactus Valley Ditch, described as follows: Beginning at a point on the Easterly line of said SW'/4SE'/4 of Section 5; whence the South East corner o:f said Section 5 bears S. 83°57' E. 1348.03 ft.; thence S. 282.7 ft. along the Easterly line of said SW`ASE'h and the Easterly line of said Lot 2 Section 8 to a point on the Northerly line of said Highway; thence N. 8317' W. 615.9 ft. along the Northerly boundary of said Highway; thence N. 88'00' W. 849.2 ft. along the Northerly boundary of said Highway; thence N. 87'59' W. 1436.8 ft. along the Northerly boundary of said Highway; thence N. 33'48' W. 538.4 ft.; thence N. 57'40' E. 116.0 ft.; thence N. 46'39' W. 132.46 ft.; thence N. 17°20' W. 183.85 ft.; thence N. 80°49' E. 20.0 ft.; thence S. 89°54' E. 11.48 ft. to a point in the center of said Cactus Valley Ditch; thence N. 85'31' E. 524.82 ft. along the center line of said ditch; thence N. 81°22' E. 183.64 ft. along the center line of said ditch; thence S. 77'34' E. 378.49 ft. along the center line of said ditch; thence S. 57°56' E. 157.74 ft. along the center line of said ditch; thence S. 74'48' E. 376.49 ft. along the center line of said ditch; thence S. 82'45' E. 397.35 ft. along the center line of said ditch; thence S. 59'47' E. 302.54 ft. to a point in the center of said ditch; thence S. 67'48' E. 847.42 ft. along the center line of said ditch; thence N. 71'27' E. 218.0 ft. along the center line of said ditch; to a point on the easterly line of said S W'/4SE'/4, the point of beginning. Containing 41.85 acres, more or less. Common address: 31145 U.S. Highway 6, Rifle, Colorado 81650. RESERVING, HOWEVER, unto Grantors an undivided one-fourth (1/4th) interest in and to all of the oil, gas and other minerals in and C'tnncumcnt. and SfIfl, ,Fmnr Desk ktoptCI.IENT kobn,.J)oc'2-27-0, warranty Eked typd 1 Return to: Don Ziegler P.O. Box 2810 Glenwood Springs CO 81602 11111 'i wham hrmilinilkilii4411 II Reception$*: 718230 03/02/2007 03:36:11 PM B:1899 P:0146Alberico 2 of 3 Roc Fee:S16.00 Doc Fee:120.001WIELD COUNTY CO • under the Property described above; and FURTHER RESERVING unto Grantors, the right to exclusive possession of the Property above described, through and including May 31, 2007. Unless sooner surrendered, all such possessory rights of Grantors shall be deemed terminated as of May 31, 2007 at 12:00 midnight. TO HAVE AND TO HOLD THE SAME, together with all appurtenances and privileges thereto belonging or in anywise thereto appertaining; and Grantors warrant title to the same, except and subject to: the possessory rights of third parties in and to those parts of the property, if any, lying outside the established fencelines; easement and right- of-way for the Cactus Valley Ditch and Mallory Gulch; prior reservation of undivided one- half ('/z) interest in all oil, gas and other minerals as contained in Deed recorded March 12, 1963, in Book 347 at Page 478, and any assignments thereof; terms and conditions of utility easement to Public Service of Colorado, recorded February 22, 1993 in Book 855 at Page 206; terms and conditions of Property Line Agreement recorded September 12, 2002 in Book 1385 at Page 651; and general property taxes for calendar year 2007, not yet due and payable. (All references to Book and Page pertain to the records of the Garfield County Clerk and Recorder). Dated this \ day of ( p,' t{ , 2007. C 1Docume.0 end Sentn`t'F oni DcA ,UwQ1CLIEMVtobneonDoek2-ZSan Warreney Deed.v.pd GRANTORS: 01344--k-C-J) Charles Howard Robinson CLARICE JANE ROB[ISON By: // e.c.eCharles Howard Robinson Attorney -in -Fact 2 STATE OF COLORADO ) COUNTY OF GARFIELD ) ss. The foregoing instrument was acknowledged before me this 't day of Yp,ci-! , 2007, by Charles Howard Robinson, individually, and by Charles Howard Robinson, as attorney-in-fact for Clarice Jane Robinson. Witness my hand and official seal. My commission expires: L. HUBBELL L. `-`: ,TARY PUBLIC C:F COLORADO C 3mmi:.•sion Expires 04/OdiO8 C.‘Docunxnu and Scntnes? oo OcckDcskiop\CL1ENTRoMnaotao l.27.u7 Warranty Deed.wpd 3 • ublic 1111 ,1 ' fl f1,14111aiiNIACI +GVIE *4 Reception#: 718230 03/02/2007 03:36:11 PM 8:1899 P:0147 Jean Rlberico 3 of 3 Rec Fee.$16.00 Doc Far 120.00 GARFIELD COUNTY CO EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON DAVID C. HALLFORD CHRISTOPHER L. COYLE THOMAS J. HARTERT CHRISTOPHER L. GEIGER SARA M. DUNN DANIEL C. WENNOGLE SCOTT GROSSCUP CHAD J. LEE • BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P.O. DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 TELEPHONE: 970.945.6546 FACSIMILE: 970.945.8902 www.balcombgreen.com May 2, 2008 KENNETH BALCOMB 1920-2005 OF COUNSEL: JOHN A. THULSON RECEIVED VIA Hand Delivery MAY 0 2 2008 GARFIELD COUNTY BUILDING & PLANNING Craig Richardson Garfield County Building and Planning 108 8th Street, Ste. 401 Glenwood Springs CO 81601 Re: Exemption From the Definition of Subdivision, Peregrine 08 Investments, Inc. Dear Craig: Under this cover I submit herewith for filing in your office the requested 12 copies of the above -referenced Application. Should you have any comments or questions regarding any of the above, please feel free to contact me at your convenience. Very truly yours, BALCOMB & GREEN, P.C. By: S C Timothy A. T Enclosures EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON DAVID C. HALLFORD CHRISTOPHER L. COYLE THOMAS J. HARTERT CHRISTOPHER L. GEIGER. SARA M. DUNN DANIEL C. WENNOGLE SCOTT GROSSCUP CHAD J. LEE Via Hand Delivery BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P. 0. DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 TELEPHONE: 970.945.6516 FACSIMILE: 970.945.9769 www.balcombgreen.com April 25, 2008 Kathy Eastley Garfield County Building and Planning 108 8th Street, #401 Glenwood Springs CO 81601 Re: Ziegler Exemption Dear Kathy: KENNETH BALCOMB (1920-2005) OF COUNSEL: JOHN A. THULSON I provide herewith the original request from Peregrine 08 Investments, LLC authorizing me to act as its representative and an original Statement of Authority. Should you have any questions or concerns regarding any of the above, please contact me at your convenience. Enclosures Very truly yours, BALCOMB & GREEN, P.C. By: 3 Timothy A. u • • or��— • • PEREGRINE 08 INVESTMENTS, LLC 0092 COUNTY ROAD 227 RIFLE, CO 81 650 April 22, 2008 TO WHOM IT MAY CONCERN: Peregrine 08 Investments, LLC, a Colorado limited liability company, hereby authorizes and appoints Timothy A. Thulson, Esq., of the law firm of Balcomb & Green, P.C., to represent Peregrine 08 Investments LLC in connection with the application by it filed with the Board of County Commissioners, Garfield County, State of Colorado, for an exemption from the definition of a subdivision planned unit development for certain real property situated within the County of Garfield and State of Colorado. PEREGRINE 08 INVESTMENTS, LLC By on. ld R. Ziegler, Manager STATEMENT OF AUTHORITY 1. This Statement of Authority relates to an entity named PEREGRINE 08 INVESTMENTS, LLC. 2. The type of entity is a LIMITED LIABILITY COMPANY. 3. The entity is formed under the laws of the STATE OF COLORADO. 4. The mailing address for the entity is 0092 County Rod 227, Rifle, CO 81650. 5. The name and position of the person authorized to execute instruments conveying, encumbering, or otherwise affecting title to real property on behalf of PEREGRINE 08 INVESTMENTS, LLC is: Donald R. Ziegler, Manager. 6. The authority of the foregoing person to bind PEREGRINE 08 INVESTMENTS, LLC is unlimited. 7. This Statement of Authority is executed on behalf of the entity pursuant to the provisions of Section 38-30-172, C.R.S.. Executed this 2"day of April, 2008. STATE OF COLORADO ) ss. COUNTY OF GARFIELD PEREGRINE 08 INVESTMENTS, LLC By . Ziegler, Manager The above and foregoing instrument was acknowledged before me this ZZ'`'day of April, 2008, by Donald R. Ziegler as Manager of Peregrine 08 Investments, LLC, a Colorado Limited Liability Company. Witness my hand and seal. My commission expires: MARGUERITE BRAUNSCHWEIG NOTARY PUBLIC STATE OF COLORADO My Cornmiss xpires 02/15/2010 Lots Served Number of residences Irrigated area ENGINEERING INCORPORATED P.O. Box 1301 Rifle, CO 81650 Tel 970-625-4933 Fax 970-625-4564 December 22, 2008 Mr. Tim Thulson, Esq. Balcomb & Green, P.C. PO Drawer 790 Glenwood Springs, CO 81602 RE: Water Supply — Ziegler Exemption - Silt, Colorado Dear Tim: As requested, Colorado River Engineering, Inc. has assisted with the development of a water supply for the Ziegler 4 -lot subdivision exemption situated along Highway 6&24 west of Silt. We have prepared this letter to summarize water supply components. One well will serve the western Lot 1 and a shared well will serve the eastern Lots 2, 3, & 4. The attached appendices include the following items for each well; (1) well permit, (2) old monitoring hole permits, (3) Well construction log, (4) 4 -hour pump test reports, (5) water quality test results. Our review indicates that the wells have a legal supply and a sufficient physical supply to serve the proposed uses with acceptable water quality results for bacteria and nitrate/nitrite. We have prepared the following table to summarize the water supply components. Well Summary Table West Well East Well Well Permit No. Monitoring Well permit N Well construction Log 4 -hour pump test Water Quality E coli Test Coliform presence 'Nitrate (max 10 mg/I) Nitrite (max 1 mg/I) Lot 1 1 14,520 s.f. 67673-F o, 273661 273661 J&M Pump none none 0.3 0.01 LOLL, 3 43,560 s.f. 67672-F 273662 273662 J&M Pump none none 0.3 0.02 The East well is proposed to be split among three lots and will need a well sharing agreement. We recommend the agreement require each individual homeowner to develop on-site storage and booster pumps to meet instantaneous peak demands. Each lot should be limited to 14,520 s.f. of irrigated area. The east well is located on Lot 1 and the plat should include an easement to access the well. If you have any questions, please feel free to call our office at 970-625-4933. Sincerely, Colorado River Engineering, Inc. &Pr Manera, P.E. Encl: CM:cm M:\CREjobfiles\712-Ziegler\WellsumryDec-08. doc • • Form No. GWS -25 APPLICANT OFFICE OF THE ATE ENGINEER COLORADO3DI13 VISION OFrWA aEo RoRESOURCES 818 3 (303) 866-3581 EXST WELL PERMIT NUMBER 67673 - F DIV. 5 WD 39 DES. BASIN MD DONALD ZIEGLER PEREGRINE 08 INVESTMENTS PO BOX 2810 GLENWOOD SPRINGS, CO 81602- (970) 379-1280 CHANGEIEXPANSION OF USE OF AN EXISTING WELL ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2, unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-90-137(2) for the construction of a well, appropriating ground water tributary to the Colorado River, on the b the condition that the well shall be operated only when the West Divide Water Conservancy District's substitute water supply plan,approvedY State Engineer, is in effect, and when a water allotment contract between the well owner and the West Divide Water Conservancy District for the release of replacement water from Ruedi Reservoir is in effect, or under an approved plan for augmentation. WDWCD contract #070419WestDZ(a). 4) Approved for the use of, an existing well, constructed on November 9, 2007, to a depth of 70 feet, under permit no. 273662 (canceled). Issuance of the permit hereby cancels permit no. 273662. 5) Approved as a well on a tract of land of 41.85 acres described as that portion of the SW 1/4 of the SW 1/4, Sec. 5, Twp. 6 South, Rng. 92 West, 6th P.M., Garfield County, more particularly described on the attached exhibit A. Further identified as 31145 Highway 6 & 24, Silt, CO 6) The use of ground water from this well is limited to fire protection, ordinary household purposes inside ore single family dwelling, the 81652. watering of two (2) head domestic animals, the irrigation of not more than 14,520 square feet of home gardens and lawns.nraAll upset' f this well will be curtailed unless the water allotment contract or a plan for augmentation is in effect. This well is known ass 7) The pumping rate of this well shall not exceed 15 GPM. 8) The average annual amount of ground water to be appropriated shall not exceed 1.27 acre-foot (413,830 gallons). 9) The owner shall mark the well in a conspicuous place with well permit number(s), name of the aquifer, and court case number(s) as appropriate. The owner shall take necessary means and precautions to preserve these markings. 10) This well shall be constructed not more than 200 feet from the location specified on this permit. 11) Totalizing flow meters must be installed on this well, and maintained in good working order. Permanent records of all diversions must be maintained by the well owner (recorded at least annually) and submitted to the Division Engineer upon request. i 7� NOTE: Canceled permit no. 273662 was previously issued for this well. NOTE: Parcel Identification Number (PIN): 23-2179-054-00-056 NOTE: Assessor Tax Schedule Number: R200399 (totaling 41.85 acres) APPROVED WELL LOCATION GARFIELD COUNTY SW 1/4 SW 1/4 Section 5 Township 6 S Range 92 W Sixth P.M. DISTANCES FROM SECTION LINES 560 Ft. from South Section Line 1075 Ft. from West Section Line UTM COORDINATES (Meters,Zone:13,NAD83) Easting: Northing: APPROVED DMW t,Receipt No. 9503147B State Engineer r DATE ISSUED 11-04-2008 By EXPIRATION DATE 11-04-2009 WELL CONSTRUCTION AND TEST REPORT STATE OF COLORADO, OFFICE OF THE STATE ENGINEER FOR OFFICE USE ONLY RECEIVED MAR 0 6' 2008 vvFii ER RESOURCESSTATE ENGINEER .coo # GWS31-91-03 1• WELL PERMIT NUMBER 273661 2. Owner Name(s): Don Ziegler Mailing Address: P.O. Box 2810 City, State, Zip : Glenwood Springs, Co. 81602 Phone #APPROVAL WELL LOCATION AS DRILLED 5 Twp: 6 S Range: 92 W 3 SE 1/4 SW 1/4 Sec: DISTANCES FROM SEC. LINES 260 ft. from South Sec. line and 1520 ft. from West Sec. line OR Easting: Northing: SUBDIVISION: LOT: BLOCK: FILING (UNIT): STREET ADDRESS AT LOCATION 4 GROUND SURFACE F.T.FVATION ft. DRILLING METHOD Air Rotary DATE COMPLETED: 11/30/2007 TOTAL DEPTH: 70 DEPTH COMPLETION: 70 5. GEOLOGIC LOG 6. HOLE DIAMETER (in) FROM (ft) TO (ft) Depth Type of Material (Size, Color, and Type) 9.0 0 45 000-033 Silts, Clays 6.5 45 70 033-044 Gravels 044-070 Wasatch Formation 7. PLAIN CASING OD (in) Kind Wall Size From (ft) To (ft) 7.0 Steel 0.240 -1 34 5.5 PVC 0.250 45 70 PERF. CASING : Screen Slot Size 7.0 Steel 0.240 34 45 5.5 PVC 0.250 32 45 Water Located: 33 - 44 Remarks : 8. Filter Pack Material : Size : Interval : 9. Packer Placement Type : Depth : 10. GROUTING RECORD Material Amount Density Interval Placement Cement 5 sks 6 gal/sk 10-25 poured 11. DISINFECTION : Type : HTH Amt. Used : 2 oz. 12. WELL TEST DATA : () Check Box If Test Data Is Submitted On Supplemental TESTING METHOD : Air Compressor Static Level : 27 ft. Date/Time Measured 11/30/2007 Production Rate 15 gpm Pumping Level : Total ft. Date/Time Measured 11/30/2007 Test Length : 2 hours Test Remarks : I have read the, statements made herein rad lmow the cosaans thereof and that they are true m my knowledge. (Pursuant to Section 24-4-1-4 (13xa) CRS, the malting of false statements 13. canstimses in the secaod degree and is pumushable as a dans 1 misdemeanor.) Phone : (970)927-4182 CONTRACTOR : Shelton Drilling Corp. Mailing Address : P.O. Box 1059 Basalt, Co. 81621 Lic. No. 1095 Name / Title (Please Type or Print) Wayne Shelton / President Signature Date 12/4/2007 ki [,l0 13 L { J Form No. OFFICE OF THE STATE ENGINEER GWS -25 COLORADO DIVISION OF WATER RESOURCES 1313818 o (303) 866-3581 APPLICANT 1095 WELL PERMIT NUMBER 273661 DIV. 5 WD 39 DES. BASIN MD DONALD ZIEGLER PO BOX 2810 GLENWOOD SPRINGS, CO 81602- (970) 379-1280 APPROVED WELL LOCATION GARFIELD COUNTY SE 1/4 SW 1/4 Section 5 Township 6 S Range 92 W Sixth P.M. DISTANCES FROM SECTION LINES _275 Ft. from South Section Line 1550 Ft. from West Section Line UTM COORDINATES [Meters.Zone:13,NAD83) Easting: Northing: PERMIT TO GUNS I 1 s► W LL ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2, unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-92-602(3)(b)(1) for uses as described in CRS 37-92-602(1)(f). Use of this well is limited to monitoring water levels and/or water quality sampling. This well is known asf2egierEast Monitoring Well. 4) This well must be equipped with a locking cap or seal to prevent well contamination or possible hazards as an open well. The well must be kept capped and locked at all times except during sampling or measuring. 5) Records of water level measurements and water quality analyses shall be maintained by the well owner and submitted to the Division of Water Resources upon request. 6) Upon conclusion of the monitoring program the well owner shall plug this well in accordance with Rule 16 of the Water Well Construction Rules. A Well Abandonment Report must be completed and submitted to the Division of Water Resources within 60 days of plugging. 7) The owner shall mark the well in a conspicuous place with the well permit number and name of aquifer as appropriate, and shall take necessary means and precautions to preserve these markings. 8) This well must be constructed by or under the supervision of a licensed well driller or other authorized individual according to the Water Well Construction Rules. If non-standard construction is anticipated, a variance request must be submitted in accordance with Rule 18 and approved prior to well construction. 9) A Well Construction and Test Report (Form GWS -31), including lithologic log must be submitted by the individual authorized to construct the well. For non-standard construction, the report must include an as -built drawing showing details such as depth, casing, perforated zones, and a description of the grouting type and interval. 10) This well shall be constructed not more than 200 feet from the location specified on this permit. dof- g400 NOTE: Parcel Identification Number (PIN): 23-2179-054-00-056 NOTE: Assessor Tax Schedule Number. R200399 (totaling 41.85 acres) APPROVED DMW Receipt No. 9502766A State Engineer DATE ISSUED 05-18-2007 div ' 2., By EXPIRATION DATE 05-18-2009 FROM : JaM PUMP COMPANY FAX NO. : 970 945 6159 Nov. 19 2007 04:15PM P1 cc At gatittnp SRC. 8611 Nate* ?aacd 117 gerttacad Spicing* eO 81601 Aims: 970-945-6159 eget 97C-948-6759 :fax: 970-945.6159 Well Test DATE: November 19, 2007 TO: Don Ziegler Box 2810 Glenwood Springs CO. 81602 RE: Well Test Attn: Don, J & M Pump Inc. perfonned a four hour well test on property located east of your residence located west of Silt. The following information was obtained: Well Depth: 70' Water Level: 35'10" measured from top of casing Drawdown To: 36'4" measured from top of casing Sustained Yield: 15 GPM Clarity: Clear Recovery: 92% within 8 minutes Sample: Taken by Colo Riv. Eng_ Mark Hays Pumping volume was increased to ( 40 GPM for 15 minutes towards end of test. The drawdown of that yield was ® 14" from 36'4". If you have any questions, please call Rick, 945-6159 Richard A Holub Lic. No 1196 Thank Yon! • • Colorado Deparunmt of public Health and Environment Laboratory Services Dizidlik 8100 Lowry Bouleva. r CO 80230-6928 US Mail: PO Box 17123, Denver CO 80217 (303) 692-3090 fax (303) 344-9989 Lab ID No. ENW-2007007081 \IPLE SITE SAMPLE INFORNIATION 3N ZIEGLER WEST WELL 145HWY6&24 EGLER PROPERTY WEST WELL WELL HEAD Collected 11/19/2007 10:00:001 Received 11/20/2007 11:47:OOAM Reported 11/21/2007 Collected By MH Matrix Drinking Water 'STONER COM \IENTS intact Name intact Phone Colorado River Engineering PO Box 1301 Rifle CO 81650 Mark Hayes Purpose Special Chlorine residual Purpose Payment Type Billed Test Name Result Method Name Escherichia coli PA Total coliforms PA E. coli not detected Coliform absent or less than one (<1), indicates a microbiologically safe sample SM 9223 iRS Interent Address: http://www.cdphe.state.co.us/lr/lrhom.htm )dification Date:11/21/2007 • Colorado Depamnent of Public Health and Environment iauoratory bervicuivision 8100 Lowry Boum rd, Denver CO 80230-6928 US Mail: PO Box 1i123, Denver CO 80217 (303) 692-3090 fax (303) 344-9989 LAB ID: INO-2007005836-001-A SAIIPLE SITE SAMPLE INFORMATION DON ZIEGLER WEST WELL 31145HWY6&24 SILT CO ZIEGLER PROPERTY WEST WELL Collected Received Reported Collected By Matrix Water Temp Residual Chlorine Field Fluoride 11/19/2007 10:00:001 11/20/2007 11:471101 11/29/2007 MH Drinking Water ,./_ CUSTOMER COIII4ENTS Contact Name Contact Phone Colorado River Engineering PO BOX 1301 136 East Third Street Rifle CO 81650 Mark Hayes 0 Test Name Result Units Method Name Date Analyzed MCL PQL Qualifier Nitrite -N <0.01 mg/L EPA 300.0 11/21/2007 1.0 0.01 Nitrate -N 4.2 mg/L EPA 300.1 11/20/2007 10 0.3 Lab Comments: PQL - The lowest concentration ofa substance in a sample that can be measured with a known level of confidence MCL - Maximum Contaminant Level - The highest level ofa contaminant that is allowed in drinking water <- less than MDL mg/L - milligram per liter (ppm) ug/L - microgram per liter (ppb) • 00Th T—...._...... A .1 :1_......_ l..as...//....,n,....7..i,e • 11111 Contract #07041 c9WestDZ(a) Map #562 Date Activated 4/l 9/07 WEST DIVIDE WATER CONSERVANCY DISTRICT WATER ALLOTMENT CONTRACT Name of Applicant: Donald Ziegler Quantity of Water in Acre Feet: 0.85 Applicant, hereby applies to the West Divide Water Conservancy District, a political subdivision of the State of Colorado, organized pursuant to and existing by virtue of C.R.S. 1973, §37-45-101, et seq., (hereinafter referred to as the "District") for an allotment contract to beneficially and perpetually use water or water rights owned, leased, or hereafter acquired by the District. By execution of this Contract and the attached Application, Applicant hereby agrees to the following terms and conditions: ] . Water Rights: Applicant shall own water rights at the point of diversion herein lawfully entitling Applicant to divert water, which will be supplemented and augmented by water leased herein. lfApplicant intends to divert through a well, it must be understood by Applicant that no right to divert exists until a valid well permit is obtained from the Colorado Division of Water Resources. 2. Quantity: Water applied for by the Applicant in the amount set forth above shall be diverted at Applicant's point of diversion from the District's direct flow water rights, and when water is unavailable for diversion pursuant to administration by the Colorado State Engineer during periods when said direct flow water right is not in priority, the District shall release for the use of Applicant up to said quantity in acre feet per year of storage water owned or controlled by the District. It is understood that any quantity allotted from direct flow. storage or otherwise, to the Applicant by the District will be limited by the priority of the District's decrees and by the physical and legal availability of water from Districts sources. Any quantity allotted will only be provided so long as water is available and the Applicant fully complies with all ofthe terms and conditions of this Contract. The District and the Applicant recognize that some of the District's decrees may be in the name of the Colorado River Water Conservation District, and the ability of the District to allot direct flow right to the Applicant may be dependent on the consent of the Colorado River Water Conservation District. if at any time the Applicant determines it requires less water than the amount herein provided, Applicant may so notify the District in writing, and the amount of water allotted under this Contract shall be reduced permanently in accordance with, such notice. Rates shall be adjusted accordingly in following water years only. 3. Beneficial Use and Location ofBeneficial Use: Any and all water allotted Applicant by the District shall be used for the following beneficial use or uses: industrial, municipal, domestic and related uses, or commercial (except for commercial use from AlsburyReservoir and except to the extent that Ruedi Reservoir water may not be available for commercial as that term is defined on Page 5 of Contract No.2-07-70- W0547 between the Un ited States and the West Divide Water Conservancy District). Applicants beneficial use of any and all water allotted shall be within or through facilities or upon land owned, leased, operated, or under Applicants control. 4. Decrees and Delivery: Exchange releases made by the District out of storage from Ruedi Reservoir, Green Mountain Reservoir, Alsbury Reservoir, or other works or facilities of the District, or from other sources available to the District, shall be delivered to the Applicant at the outlet works of said storage facilities or at the decreed point of diversion for said other sources, and release or delivery ofwater at such outlet or points shall constitute performance of the District's total obligation. Delivery of water by the District from Ruedi Reservoir or Green Mountain Reservoir shall be subject to the District's lease contracts with the United States Bureau of Reclamation. Releases from other facilities available to District shall be subject to the contracts, laws, rules, and regulations governing releases therefrom. Furthermore, the District hereby 1 expressly reserves the right to store water o make exchange releases from structures that ma} ouilt or controlled by the District in the future, so long as the water service to the Applicant pursuant to this agreement, is not impaired by said action. Any quantity of the Applicant's allocation not delivered to or used by Applicant by the end of each water year (October l), shall revert to the water supplies of the District. Such reversion shall not entitle Applicant to any refund of payment made for such water. Water service provided by the District shall be limited to the amount of water available in priority at the original point ofdiversion of the District's applicable water right, and neither the District, nor those entitled to utilize the District's decrees, may call on any greater amount at new or alternate points of diversion. The District shall request the Colorado Division of Water Resources to estimate any conveyance losses between the original point and any alternate point, and such estimate shall be deducted from this amount in each case. Water service provided by the District for properties located within the Bluestone and Silt Water Conservancy Districts is provided pursuant to Agreements with said Districts. The Intergovernmental Agreement between the District and the Silt Water Conservancy District, dated January 25, 2001, is recorded as Reception No. 575691, Garfield County Clerk and Recorder's Office. The Intergovernmental Memorandum of Understanding between the District and the Bluestone Water Conservancy District, dated April 26, 200], is recorded as Reception No. 584840,. Garfield County Clerk and Recorder's Office. 5. Alternate Point of Diversion and Plan of Augmentation: Decrees for alternate points of diversion of the District's water rights or storage water may be required in order for Applicant to use the water service contemplated hereunder. Obtaining such decree is the exclusive responsibility of Applicant. The District reserves the right to review and approve any conditions which may be attached to judicial approval of said alternate point of diversion as contemplated or necessary to serve Applicant's facilities or lands. Applicant acknowledges and agrees that it shall be solely responsible for the procedures and legal engineering costs necessary for any changes in water rights contemplated herein, and further agrees to indemnify the District from any costs or losses related thereto. Applicant is solely responsible for providing works and facilities necessary to obtain/divert the waters at said alternate point of diversion and deliver them to Applicants intended beneficial use. Irrespective of the amount of water actually transferred to the Applicant's point of diversion, the Applicant shall make annual payments to the District based upon the amount of water allotted under this Contract. In the event. the Applicant intends to apply for an alternate point of diversion and to develop an augmentation plan and institute legal proceedings for the approval of such augmentation plan to allow the Applicant to utilize the water allotted to Applicant hereunder, the Applicant shall give the District written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to utilize the water allotted hereunder, Applicant shall not be obligated to pay any amount under Paragraph I9 below. In any event, the District shall have the right to approve or disapprove the Applicants augmentation plan and the Applicant shall provide the District copies of such plan and of all pleadings and other papers filed with the water court in the adjudication thereof. 6. Contract Payment: Non-refundable, one time administrative charge, in the amount determined by the Board ofDirectors of the District from time to time, shall be submitted with the application for consideration by the District. Annual payment for the water service described herein shall be determined by the Board of Directors of the District. The initial annual payment shall be made in full, within thirty (30) days after the date of notice to the Applicant that the initial payment is due. Said notice will advise the Applicant, among other things, of the water delivery year to which the initial payment shall apply and the price which is applicableto that year. 2 • Annual payments for' . year thereafter shall be due and payable by the At r,icant on or before each January 1. If an annual payment is not made by the due date a flat $50 late fee will be assessed. Final written notice prior to cancellation will be sent certified mail, return receipt requested, to the Applicant at such address as may be designated by the Applicant in writing or set forth in this Contract or Application. Water use for any part of a water year shall require payment for the entire water year. Nothing herein shall be construed so as to prevent the District from adjusting the annual rate in its sole discretion for future years only. If payment is not made within fifteen (] 5) days after the date of said written notice, Applicant shall at Districts sole option have no funher right, title or interest under this Contract without further notice, and delivery may be immediately curtailed. The allotment of water, as herein made, may be transferred, leased, or otherwise disposed of at the discretion of the Board of Directors of the District. Upon cancellation of this water allotment Contract with the District. the District shall notify the Division of Water Resources offices in Denver and Glenwood Springs. The Division of Water Resources may then order cessation of all water use. 7. Additional Fees and Costs: Applicant agrees to defray any expenses incurred by the District in connection with the allotment of water rights hereunder, including, but not limited to, reimbursement oflegal and engineering costs incurred in connection with anywater rights and adjudication necessary to allow Applicant's use of such allotted water rights. 8. Assignment: This Contract shall not inure to the benefit of the heirs, successors or assigns of Applicant, without the prior written consent of the District's Board of Directors. Any assignment of Applicants rights under this Contract shall be subject to, and must comply with, such requirements as the District may hereafter adopt regarding assignment of Contract rights and the assumption of Contract obligations by assignees and successors. Nothing herein shall prevent successors to a portion of Applicant's property from applyingto the District for individual and separate allotment Contracts. No assignment shall be recognized by the District except upon completion and filing ofproper forms for assignment and change of ownership. In the event the water allotted pursuant to this Contract is to be used for the benefit of land which is now or will subsequently be subdivided or held in separate ownership, the Applicant may only assign the Applicant's rights hereunder to: 1) No more than three separate owners all of whom shall be party to a well sharing agreement satisfactory to the District; or 2) A homeowners association, water district, water and sanitation district or other special district properly organized and existing under the laws of the State of Colorado, and then, only if such parties, association or special district establishes to the satisfaction of the District that it has the ability and authority to perform the Applicants obligations under this Contract In no event shall the owner of a portion, but Tess than all, of the Applicant's property to be served under this Contract have any rights hereunder, except as such rights may exist pursuant to a well sharing agreement or through a homeowners association or special district asprovided above. Upon the sale of the real property to which this Contract pertains. Applicant shall make buyer aware of this Contract and proper forms for assignment and change of ownership must be completed. 9. Other Rules: Applicant shall be bound by the provisions of the Water Conservancy Act of Colorado; by the rules and regulations of the Board of Directors of the District; and all amendments thereof and supplements thereto and by all other applicable law. 10. Operation and Maintenance Agreement: Applicant shall enter into an "Operation and Maintenance Agreement' with the District under terms and conditions determined by the board of Directors of the District, i f and when, the Board of said District determines in its sole discretion that such an agreement is required. Said agreement may contain, but shall not be limited to, provisions for additional annual monetary 3 consideration for extension of District del' j services and for additional administration, operat,.._., and maintenance costs; or for other costs to the District which may arise through services made available to the Applicant. 11. Change of Use: The District reserves the exclusive right to review, reapprove or disapprove any proposed change in use of the water allotted hereunder. Any use other than that set forth herein or any lease or sale of the water or water rights allotted hereunder without the prior written approval of the District shall be deemed to be a material breach of this Contract. 12. Use and Place of Use: Applicant aerees to use the water in the manner and on the property described in the documents submitted to the District at the time this Contract is executed, or in any operation and maintenance agreement provided by Applicant Any use other than as set forth thereon or any lease or sale of the water or water rights herein, other than as permitted in paragraph 8 above, shall be deemed to be a material breach of this agreement. 13. Title: It is understood and agreed that nothing herein shall be interpreted to give the Applicant any equitable or legal fee title interest in or to any water or water rights referred to herein. 14. Conservation: Applicant shall use commonly accepted conservation practices with respect to the water and water rights herein, and hereby agrees to be bound by any conservation plan adopted hereafter by the District for use of District owned or controlled water or water rights. 15. Restrictions: Applicant shall restrict actual diversions to not exceed the contract amount, which provides water (on the formula (Zone acre foot per dwelling) for ordinary household purposes inside one single family dwelling, the watering of domestic livestock, fire protection, and the irrigation of lawn and garden as specified in the Application. Water Resources. Applicant shall also comply with all restrictions and limitations set forth in the well permit obtained from the Colorado Division of Watering of livestock shall be restricted to Applicant's domestic animals not to be used for commercial purposes unless Applicant obtains approval from the Colorado Division of Water Resources for commercial use/livestock watering, provided that in no event shall actual diversions exceed the amount of water provided by this Contract. Violation of this paragraph 15 shall be deemed to be a material breach of this Contract. 16. Well Permit: If Applicant intends to divert through a well, then Applicant must provide to District acopy ofApplicant's valid well permit before District is obligated to deliver any water hereunder. 17. Measuring Device or Meter Applicant agrees to provide, at its own expense, a measuring device deemed acceptable by the District's Engineer after consultation, or a totalizing flow meter with remote readout to continuously and accurately measure at all times all water diverted pursuant to the terms of Applicant's water right and the terms of this Contract. Applicant agrees to provide accurate readings from such device or meter to District upon District's request. Applicant acknowledges that failure to comply with this paragraph could result in legal action to terminate Applicant's diversion of water by the State of Colorado Division of Water Resources. By signing this Contract, Applicant hereby specifically allows District, through its authorized agent, to enter upon Applicant's property during ordinary business hours for the purposes of determining Applicant's actual use of water. 4 18. Represents By executing this Contract, Applicant agrees th� . is not relying on any legal or engineering advice that Applicant may believe has been received from the District. Applicant further acknowledges that it has obtained all necessary legal and engineering advice from Applicant's own sources other than the District. Applicant further acknowledges that the District makes no guarantees, warranties, or assurances whatsoever about the quantity or quality of water available pursuant to this Contract. Should the District be unable to provide the water contracted for herein. no damages may be assessed against the District, nor may Applicant obtain a refund from the District. 19. Costs of Water Court Filing and Augmentation Plan: Should the District, in its own discretion, choose lo include Applicant's Contract herein in a water court filing for alternate point of diversion or plan of augmentation, then Applicant hereby agrees to pay to the District, when assessed, an additional fee representing the District's actual and reasonable costs and fees for Applicant's share of the proceedings. Applicant shall he assessed a pro -rata share of the total cost incurred by the District in preparing, filing and pursuing to decree the water court case. The pro -rata share shall be calculated by dividing such total cost by the number of contractees included in the filing. To the extent that theDistrict is caused additional costs because of objection filed specifically due to the inclusion of Applicant's Contract in the filing, such additional costs maybe charged specifically to Applicant and not shared on a pro -rata basis by all contractees. 20. Binding Agreement: This agreement shall not be complete nor binding upon the District unless attached hereto is the form entitled "Application to Lease Water From West Divide Water Conservancy District" fully completed by Applicant and approved by the District's engineer. Said attachments shall by this reference thereto be incorporated into the terms of this agreement. All correspondence from the District to Applicant referring to or relating to this agreement is by this reference incorporated into this agreement as further terms and conditions of this agreement. 21. Wamine: IT IS THE SOLE RESPONSIBILITY OF THE APPLICANT TO OBTAIN A VALID WELL PERMIT OR OTHER WATER RIGHT IN ORDER TO DIVERT WATER, INCLUDING THE WATER ACQUIRED UNDER THIS CONTRACT. IT IS THE CONTINUING DUTY OF THE APPLICANT TO MAINTAIN THE VALIDITY OF THE WELL PERMIT OR WATER RIGHT INCLUDING FILING FOR EXTENSIONS OF PERMITS, FILING WELL COMPLETION REPORTS, FILING STATEMENTS OF BENEF)C1AL USE, OR OTHERWISE LAWFULLY APPLYING THE WATER TO BENEFICIAL USE ON A REGULAR BASIS WITHOUT WASTE. 22. AREA B. CONTRACTS: IF APPLICANTS WELL OR OTHER WATER RIGHT THAT IS THE SUBJECTOF THIS CONTRACT IS LOCATED OUTSIDE "AREA A" AS DESIGNATED BY THE DISTRICT, THEN THIS PARAGRAPH APPLIES: THE AUGMENTATION WATER PROVIDED BY THE DISTRICT UNDER THIS CONTRACT MAY ONLY PROTECT APPLICANTS WATER RIGHT FROM A CALL ON THE COLORADO RIVER AND MAY NOT PROTECT APPLICANT FROM A CALL FROM ANY OTHER SENIOR RIGHT. NO REPRESENTATION OTHERWISE IS MADE BY THE DISTRICT. IF THIS IS A CONCERN TO APPLICANT, THIS CONTRACT MAY BE RESCINDED UPON WRITTEN NOTICE DELIVERED TO THE DISTRICT BY THE APPLICANT WITHIN THE NEXT 30 DAYS FOLLOWING THE AFFIXING OF SIGNATURES ON THIS CONTRACT IN WHICH EVENT ALL SUMS PAID BY APPLICANT FOR THIS CONTRACT SHALL BE IMMEDIATELY REFUNDED TO APPLICANT. t° 4144 - Applicant Applicant 5 STATE OF/0?G/U COUNTY OF (la,- ,V The foregoing instrument was he/5 443F1et,a STATE OF } )! acknowledged ) ss" COUNTY OF The foregoing instrument was acknowledged aca 't! AMANDA B. e DUNN t,4' befo y tap ri „� Vi UO before me on this F day of fibpc}) b► 20 Q , by Aftseal. My commission expires: .4. A q ,„zj 9 14 , I. di at e Notary Public day of 20 by . Witness my hand and official seal. My commission expires: Notary Public ORDER After a hearing by the Board of Directors of the West Divide Water Conservancy District on the Application. it is hereby ORDERED that said Application be granted and this Contract shall be and is accepted by the District. ATTEST: Se�retary WEST DIVIDE WATER CONSERVANCY DISTRICT By President Date This Contract includes and is subject to the terms and conditions of the following documents which must accompany this Contract: I. Map showing location of point of diversion (use map provided) 2. Application and Data Form fully completed and signed The printed portions of this form, except differentiated additions or deletioas, have teen approved and adopted by the West Divide Water Conservancy District Form #WDWCD 050907 CONTRACT. 6 • • Form No. GWS -25 APPLICANT OFFICE OF THE,ATE ENGINEER COLORADO DIVISION OF WATER RESOURCE'? 818 Centennial Bldg., 1313 Sherman St., Denver, Colorado 80203 (303) 866-3581 EXST WELL PERMIT NUMBER 67672 - F DIV. 5 WD 39 DES. BASIN MD DONALD ZIEGLER PEREGRINE 08 INVESTMENTS PO BOX 2810 GLENWOOD SPRINGS, CO 81602- (970) 379-1280 EXISTING WELL APPROVED WELL LOCATION GARFIELD COUNTY SE 1/4 SW 1/4 Section 5 Township 6 S Range 92 W Sixth P.M. DISTANCES FROM SECTION LINES 275 Ft. from South Section Line 1550 Ft. from West Section Line UTM COORDINATES (Meters,Zone:13,NAD83) Easting: Northing: ;HANvt►txrPiNbIUN OF USE Or AN ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights. The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2, unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-90-137(2) for the construction of a well, appropriating ground water tributary to the Colorado River, on the condition that the well shall be operated only when the West Divide Water Conservancy District's substitute water supply plan, approved by the State Engineer, is in effect, and when a water allotment contract between the well owner and the West Divide Water Conservancy District for the release of replacement water from Ruedi Reservoir is in effect, or under an approved plan for augmentation. WDWCD contract #070419EastDZ(a). 4) Approved for the use of, an existing well, constructed on November 30, 2007, to a depth of 70 feet, under permit no. 273661 (canceled). Issuance of the permit hereby cancels permit no. 273661. 5) Approved as a well on a tract of land of 41.85 acres described as that portion of the SE 1/4 of the SW 1/4, Sec. 5, Twp. 6 South, Rng. 92 West, 6th P.M., Garfield County, more particularly described on the attached exhibit A. Further identified as 31145 Highway 6 & 24, Silt, CO 81652. 6) The use of ground water from this well is limited to fire protection, ordinary household purposes inside three (3) single family dwellings, the watering of six (6) head domestic animals, the irrigation of not more than one (1) acre of home gardens and lawns. All use of this well will be curtailed unless the water allotment contract or a plan for augmentation is in effect. This well is known asd 'SWOP - 7) The pumping rate of this well shall not exceed 15 GPM. 8) The average annual amount of ground water to be appropriated shall not exceed 3.82 acre-foot (1,244,747 gallons). 9) The owner shall mark the well in a conspicuous place with well permit number(s), name of the aquifer, and court case number(s) as appropriate. The owner shall take necessary means and precautions to preserve these markings. 10) This well shall be located not more than 200 feet from the location specified on this permit and at least 600 feet from any existing well, completed in the same aquifer, that is not owned by the applicant. 11) Totalizing flow meters must be installed on this well, and maintained in good working order. Permanent records of all diversions must be maintained by the well owner (recorded at least annually) and submitted to the Division Engineer upon request. NOTE: Canceled permit no. 273661 was previously issued for this well. NOTE: Parcel Identification Number (PIN): 23-2179-054-00-056 � 00 NOTE: Assessor Tax Schedule Number: R200399 (totaling 41.85 acres) APPROVED DMW State Engineer Rprpint Nn 9503147A DATE ISSUED 11-04-2008 By EXPIRATION DATE 11-04-2009 i 1 i Nov 12 07 04:OOp Wayne Shelton --- 97(1927-3801 p.1 Form No. -_GWS -25 APPLICANT OFFICE OF THE STATE ENGINEER COLORADO DIVISION OF WATER RESOURCES 818 Centennial Bldg.. 1313 Sherman Si., Denver, Colorado 80203 (303)866-3581 WELL PERMIT NUMBER 273662 DIV. 5 WD 39 DES. BASIN MD DONALD ZIEGLER PO BOX 2810 GLENWOOD SPRINGS, CO 81602- (970) 379-1280 PERMIT TO CONSTRUCT A WELL APPROVED WELL LOCATION GARFIELD COUNTY SW 1/4 SW 1/4 Section 5 Township 6 S Range 92 W Sixth P.M. DISTANCES FROM SECTION LINES 560 Ft. from South Section Line 1075 Ft. from West Section Line UTM COORDINATES (Meters,Zone:13,NAD83) Easting: Northing: ISSUANCE OF THIS PERMIT DOES NOT CONFER A WATER RIGHT CONDITIONS OF APPROVAL 1) This well shall be used in such a way as to cause no material injury to existing water rights_ The issuance of this permit does not ensure that no injury will occur to another vested water right or preclude another owner of a vested water right from seeking relief in a civil court action. 2) The construction of this well shall be in compliance with the Water Well Construction Rules 2 CCR 402-2, unless approval of a variance has been granted by the State Board of Examiners of Water Well Construction and Pump Installation Contractors in accordance with Rule 18. 3) Approved pursuant to CRS 37-92-602(3)(b)(I) for uses as described in CRS 37-92-602(1)(1). Use of this well is limited to monitoring water levels and/or water quality sampling. This well is known as Ziegler West Monitoring Well. 4) This well must be equipped with a locking cap or seal to prevent well contamination or possible hazards as an open well. The well must be kept capped and locked at all times except during sampling or measuring. 5) Records of water level measurements and water quality analyses shall be maintained by the well owner and submitted to the Division of Water Resources upon request. 6) Upon conclusion of the monitoring program the well owner shall plug this well in accordance with Rule 16 of the Water Well Construction Rules. A Well Abandonment Report must be completed and submitted to the Division of Water Resources within 60 days of plugging. 7) The owner shall mark the well in a conspicuous place with the well permit number and name of aquifer as appropriate, and shall take necessary means and precautions to preserve these markings. 8) This well must be constructed by or under the supervision of a licensed welt driller or other authorized individual according to the Water Well Construction Rules. If non-standard construction is anticipated, a variance request must be submitted in accordance with Rule 18 and approved prior to well construction. 9) A Well Construction and Test Report (Form GWS -31), including lithologic log must be submitted by the individual authorized to construct the well. For non-standard construction, the report must include an as -built drawing showing details such as depth, casing, perforated zones, and a description of the grouting type and interval. 10) This well shall be constructed not more than 200 feet from the location specified on this permit NOTE: Parcel Identification Number (PIN): 23-2179-054-00-056 NOTE: Assessor Tax Schedule Number. R200399 (totaling 41.85 acres) APPROVED DMW 4‘' State Engineer `Receipt No. 9502766E .DATE ISSUED 05-18-2007 8 FRATION DATE 05-18-2009 Nov 12 07 04:OOp Wayne Shelton WELL CONSTRUCTION AND TEST REPORT STATE OF COLORADO, OFFICE OF THE STATE ENGINEER 2. 3. WELL PERMIT NUMBER 273662 Owner Name(s): Donald Ziegler Mailing Address: P.O. Box 2810 City, State, Zip : Glenwood Springs, Co 81602 Phone # : 907-379-1280 WELL LOCATION AS DRILLED DISTANCES FROM SEC. LINES 490 ft. from South Sec. line and SUBDIVISION: 970--1927-3801 FOR OFFICE USE ONLY APPROVAL # GWS3I-91-03 p.2 SW 1(4 SW 1/4 Sec: 5 Twp: 6 S Range: 92 W 1125 ft. from West Sec. line OR Easting: Northing: BLOCK: LOT: FILING (UNIT): 4 GROUND SURFACE ELEVATION ft DRILLING METHOD Air Rotary DATE COMPLETED: 11/9/2007 TOTAL DEPTH: 70 DEPTH COMPLETION: 70 5. GEOLOGIC LOG 6. HOLE DIAMETER (in) FROM (ft) TO (ft) Depth Type of Material (Size, Color, and Type) 9.0 0 58 000-041 Clays, Silts 6.5 58 70 041-050 Cobbles, Gravels _ 050-070 Wasatch Formation 7. PLAIN CASING OD (in) Kind ',all Size From (ft) To (ft) 7.0 Steel 0.240 -1 42 7.0 Steel 0.240 50 58 5.5 PVC 0.250 50 70 PERF. CASING : Screen Slot Size 7.0 Steel 0.240 42 50 Water Located: 41 - 50 Remarks : 8. Filter Pack Material : Size : Interval : 9. Packer Placement Type : Depth : 10. GROUTING RECORD Material Amount Density I Interval I Placement Cement 5 sks 6 galisk 10-24 1 poured 1 11. DISINFECTION : Type : HTH Amt. Used : 2 oz. 12. WELL TEST DATA : () Check Box If Test Data Is Submitted On Supplemental TESTING METHOD : Air Compressor Static Level : 37 ft. Date/Time Measured 11/9/2007 Production Rate 15 gpm Pumping Level : Total ft. DateiTime Measured 11/9/2007 Test Length : 2 hours Test Remarks : 13.1 have read the statements made herein and know the contents thereof, and that they arc true to my knowledge. (Pursuant to Salton 24-4-1.4 (1:)(a) CRS, the malcom of false statements on3imtes perjwy in the second degre and is punishable as a class 1 misdemeanor. ) CONTRACTOR Shelton Drilling Corp. Phone : (970) 927-4182 Mailing Address : P.O. Box 1059 Basa Co. 81621 Lic. No. 1095 Name / Title (Please Type or Print) Wayne Shelton 1 President Signaturj' Date 11/12/2007 s -0/11 _—....+" U it �d.4t Yurnp J 8611 &iw iV..laad 117 quuuraad Sp*i g eV 81.601 Amu.: 970-945.6159 97C-943-6159 taco: 970845-6159 Well Test DATE: December 5, 2007 TO: Don Ziegler Box 2810 Glenwood Springs, CO. 81602 RE: Well Test #2 Attn: Don, J & M Pump Inc. performed a four hour well test on property located east of your residence located west of Silt_ Well #2 information was obtained: Well Depth: 70' Water Level: 28' measured from top of casing Drawdown To: 30'2" measured from top of casing Sustained Yield: 15 GPM Clarity: Clear Recovery: 100% within 22 minutes Sample: Taken by Colo. Riv. Eng. Mark Hays Pumping volume was increased to ® 40 GPM Thr 15 minutes towards end of test_ The drawdown of that yield was 13" from 30'2" If you have any questions, please call Rick, 945-6159 I & M Pump Inc. Richard A Holub Lic. No 1196 'hank You! 1 • :.a\IPLE SITE Laooratory services L2iyision 8100 Lowry Bouleva ver CO 80230-6928 US Mail: PO Box 171 nver CO 80217 Colorado (303) 692-3090 fax (303) 344-9989 of Publ aad F,nvitnnment • Lab ID No. ENW-2007007353 SAMPLE INFORMATION EIEGLER PROPERTY 31145 HWY 6&24 EAST WELL EAST WELL WELL HEAD Collected Received Reported Collected By 12/5/2007 9:05:00AP 12/6/2007 11:02:OOAM 12/7/2007 MH Matrix Drinking Water .1STONIFR COM \LENTS Colorado River Engineering PO Box 1301 136 East Third Street Rifle CO 81650 :ontact Name Mark Hayes :ontact Phone Purpose Special Chlorine residual 0 Purpose Payment Type Billed Test Name Result Method Name Escherichia coli PA Total coliforms PA E. coli not detected Coliform absent or less than one (<1), indicates a microbiologically safe sample SM 9223 QRS Interent Address: http://www.cdphe.state.co.us/lr/lrhom.htm odification Date:12/7/2007 Colorado Departrncnt of Public Health and Environment Laboratory Serviceivision 8100 Lowry Boulez Denver CO 80230-6928 US Mail: PO Box 17123, Denver CO 80217 (303) 692-3090 fax (303) 344-9989 LAB ID: INO-2007006047-001-A SAMPLE SITE SAMPLE INFORMAT 3N ZIEGLER PROPERTY 31145HWY6&24 SILT CO EAST WELL WELL HEAD Collected Received Reported Collected By Matrix Water Temp Residual Chlorine Field Fluoride 12/5/2007 9:05:00A1 12/6/2007 4:19:00PN 12/12/2007 mh Drinking Water CUSTOMER COMMENTS Contact Name Contact Phone Colorado River Engineering PO BOX 1301 136 East Third Street Rifle CO 81650 Mark Hayes 9706254933 NO NEED TO RETURN ICE PACK Test Name Result Units Method Name Date Analyzed MCL PQL Qualifier Nitrate -N <0.3 mg/L EPA 300.1 12/07/2007 10 0.3 Nitrite -N <0.02 mg/L EPA 300.0 12/07/2007 1.0 0.02 Lab Comments: COPY SENT TO CDPHE WATER QUALITY DEP. PQL - The lowest concentration ofa substance in a sample that can be measured with a known level of confidence MCL - Maximum Contaminant Level - The highest level ofa contaminant that is allowed in drinking water < - less than MDL mg/L - milligram per liter (ppm) ug/L - microgram per liter (ppb) • T .ST) Tnterent Address: htto://www.cdphe.state.co.us/lr/lrhom.htm • APPLICATION TO AMEND WATER LEASE # 070419EastDZ(a) WEST DIVIDE WATER CONSERVANCY DISTRICT 109 West Fourth Street, P. O. Box 1478, Rifle, Colorado 81650 Contract #070419EastDZ(a) Ma P#563 Date Activated 4/19/07 Date Amended 8/28/08 1. APPLICANT INFORMATION Name: Donald Ziegler / Peregrine 08 Investments, LLC Mailing address: PO Box 2810 Glenwood Scrims. CO 81602 Telephone: 970-379-1280 Authorized agent Chris Manera/Colorado River Engineering. Inc. 2. COURT CASE ifs: Decree Case No. Augmentation Plan Case No. 3. USE OF WATER RESIDENTIAL Number of main residences: 3 No. ADU's Subdivision: No. constructed units: No. vacant lots Home garden/lawn irrigation of 43560 total sq. ft. Method of irrigation: flood sprinkler X other Non-commercial animal watering of 6 animals Fire Protection X Evaporation: Maximum water surface to be exposed: Description of any use, other than evaporation, and method of diversion, rate of diversion, and annual amount of diversion of any water withdrawn from the pond: Well Sharing Agreement for mnitipfe owner welts must he submitted If greaser than two owners, application must be made under a homeowners association. COMMERCIAL Number of units: Total sq. ft. of commercial units: Description of use: LN'DUSTRIAL Description of use: Evaporation: Maximum water surface to be exposed: Description of any use, other than evaporation, and method of diversion, rate of diversion, and annual amormt of diversion of any water withdrawn from the pond: MUNICIPAL Description of use: DIRECT PUMPING Tributary: Location: 4. SOURCE OF WA 11:R Structure: Well Structure Name: Ziegler East Well Source: surface storage ground water X Current Permit* n/a (attach copy) 5. LOCATION OF STRUCTURE Garfield SE SW County Quarter/quarter 5 6S Section Township Distance of well from section lines: 275 from South. 1550 from West 92W Range Quarter 6th P. M. Elevation: 5440 Well location address: 31145 Hwy 6 & 24. Sift. Colorado (Attach additional pages for multiple structures) 6. LAND ON WHICH WATER WILL BE USED (Legal description may be provided as an attachment.) See attached Number of acres in tract Total 45.4± ac Inclusion into the District, at Applicant's expense, may be required. 7. TYPE OF SEWAGE SYSTEM Septic tank/absorption leach field X Central System Other District name: 8. VOLUME OF LEASED WATER NEEDED IN ACRE FEET: 2.54 (minimum of 1 acre foot except augmentation from Alsbury Reservoir where a lesser amount is allowed) Provide engineering data to support volume of water requested Commercial, municipal, and industrial users must provide diversion and consumptive data on a monthly basis. A totalizing flow nreler with remote readout is retprired to be installed and usage reported to West Divide. Applicant elpressly acknowledges it has had the opportunity to review the District's form Water Allotment Contract and agrees this application is made pursuant and subject to the terms and conditions contained therein. r ./v1^LY A{lirl1 �n6)vir(� Applicant Signature Applicant Signature Application Date: Y_,Y. L '0 r') DATE APPROVED: Printed portions of this form, except differentiated additions or deletions have been approved and adopted by the West,Divide Water Conservancy District Form : WDWCD 01-01-08 AMEND APPLICATION - WEST DIVIDE WATER CONSERVANCY DISTRICT WATER ALLOTMENT CONTRACT Name of Applicant: Donald Ziegler Contract #070419EastDZ(a) Map #563 Date Activated 4/19/07 Quantity of Water in Acre Feet: 1.69 Applicant, hereby applies to the West Divide Water Conservancy District, a political subdivision of the State of Colorado, organized pursuant to and existing by virtue of C.R.S. 1973, §37-45-101, et seq., (hereinafter referred to as the "District") for an allotment contract to beneficially and perpetually use water or water rights owned, leased, or hereafter acquired by the District. By execution of this Contract and the attached Application, Applicant hereby agrees to the following terms and conditions: 1. Water Rights: Applicant shall own water rights at the point of diversion herein lawfully entitling Applicant to divert water, which will be supplemented and augmented by water leased herein. If Applicant intends to divert through a well, it must be understood by Applicant that no right to divert exists until a valid well permit is obtained from the Colorado Division of Water Resources. 2. Quantity: Water applied for by the Applicant in the amount set forth above shall be diverted at Applicant's point of diversion from the District's direct flow water rights, and when water is unavailable for diversion pursuant to administration by the Colorado State Engineer during periods when said direct flow water right is not in priority, the District shall release for the use of Applicant up to said quantity in acre feet per year of storage water owned or controlled by the District. It is understood that any quantity allotted from direct flow, storage or otherwise, to the Applicant by the District will be limited by the priority of the District's decrees and by the physical and legal availability of water from District's sources. Any quantity allotted will only be provided so long as water is available and the Applicant fully complies with all ofthe terms and conditions of this Contract. The District and the Applicant recognize that some of the Districts decrees may be in the name of the Colorado River Water Conservation District, and the ability of the District to allot direct flow right to the Applicant may be dependent on the consent of the Colorado River Water Conservation District. If at any time the Applicant determines it requires less water than the amount herein provided, Applicant may so notify the District in writing, and the amount of water allotted under this Contract shall be reduced permanently in accordance with such notice. Rates shall be adjusted accordingly in following water years only. 3. Beneficial Use and Location ofBeneficial Use: Any and all water allotted Applicant by the District shall be used for the following beneficial use or uses: industrial, municipal, domestic and related uses, or commercial (except for commercial use from Alsbury Reservoir and except to the extent that Ruedi Reservoir water may not be available for commercial as that term is defined on Page 5 of Contract No. 2-07-70- W0547 between the United States and the West Divide Water Conservancy District). Applicant's beneficial use of any and all water allotted shall be within or through facilities or upon land owned, leased, operated, or under Applicant's control. 4. Decrees and Delivery: Exchange releases made by the District out of storage from Ruedi Reservoir, Green Mountain Reservoir, Alsbury Reservoir, or other works or facilities of the District, or from other sources available to the District, shall be delivered to the Applicant at the outlet works of said storage facilities or at the decreed point of diversion for said other sources, and release or delivery of water at such outlet or points shall constitute performance of the District's total obligation. Delivery of water by the District from Ruedi Reservoir or Green Mountain Reservoir shall be subject to the District's lease contracts with the United States Bureau of Reclamation. Releases from other facilities available to District shall be subject to the contracts, laws, rules, and regulations governing releases therefrom. Furthermore, the District hereby 1 • • expressly reserves the right to store water ann io make exchange releases from structures that may be built or controlled by the District in the future, so long as the water service to the Applicant pursuant to this agreement, is not impaired by said action. Any quantity of the Applicants allocation not delivered to or used by Applicant by the end of each water year (October 1), shall revert to the water supplies ofthe District. Such reversion shall not entitle Applicant to any refund of payment made for such water. Water service provided by the District shall be limited to the amount of water available in priority at the original point of diversion of the District's applicable water right, and neither the District, nor those entitled to utilize the Districts decrees, may call on any greater amount at new or alternate points of diversion. The District shall request the Colorado Division of Water Resources to estimate any conveyance losses between the original point and any alternate point, and such estimate shall be deducted from this amount in each case. Water service provided by the District for properties located within the Bluestone and Silt Water Conservancy Districts is provided pursuant to Agreements with said Districts. The Intergovernmental Agreement between the District and the Silt Water Conservancy District, dated January 25, 2001, is recorded as Reception No. 575691, Garfield County Clerk and Recorder's Office. The Intergovernmental Memorandum of Understanding between the District and the Bluestone Water Conservancy District, dated April 26, 2001, is recorded as Reception No. 584840, Garfield County Clerk and Recorder's Office. 5. Alternate Point of Diversion and Plan of Augmentation: Decrees for alternate points of diversion of the Districts water rights or storage water may be required in order for Applicant to use the water service contemplated hereunder. Obtaining such decree is the exclusive responsibility of Applicant The District reserves the right to review and approve any conditions which may be attached to judicial approval of said alternate point of diversion as contemplated or necessary to serve Applicants facilities or lands. Applicant acknowledges and agrees that it shall be solely responsible for the procedures and legal engineering costs necessary for any changes in water rights contemplated herein, and further agrees to indemnify the District from any costs or losses related thereto. Applicant is solely responsible for providing works and facilities necessary to obtain/divert the waters at said alternate point of diversion and deliver them to Applicants intended beneficial use. Irrespective of the amount of water actually transferred to the Applicant's point of diversion, the Applicant shall make annual payments to the District based upon the amount of water allotted under this Contract. In the event the Applicant intends to apply for an alternate point of diversion and to develop an augmentation plan and institute legal proceedings for the approval of such augmentation plan to allow the Applicant to utilize the water allotted to Applicant hereunder, the Applicant shall give the District written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to utilize the water allotted hereunder, Applicant shall not be obligated to pay any amount under Paragraph 19 below. In any event, the District shall have the right to approve or disapprove the Applicant's augmentation plan and the Applicant shall provide the District copies of such plan and of all pleadings and other papers filed with the water court in the adjudication thereof 6. Contract Payment: Non-refundable, one time administrative charge, in the amount determined by the Board ofDirectors of the District from time to time, shall be submitted with the application for consideration by the District. Annual payment for the water service described herein shall be determined by the Board of Directors ofthe District. The initial annual payment shall be made in full, within thirty (30) days after the date of notice to the Applicant that the initial payment is due. Said notice will advise the Applicant, among other things, ofthe water delivery year to which the initial payment shall apply and the price which is applicable to that year. 2 Annual payments for each year thereafter shall be due and payable by the Applicant on or before each January 1. If an annual payment is not made by the due date a flat $50 late fee will be assessed. Final written notice prior to cancellation will be sent certified mail, return receipt requested, to the Applicant at such address as may be designated by the Applicant in writing or set forth in this Contract or Application. Water use for any part of a water year shall require payment for the entire water year. Nothing herein shall be construed so as to prevent the District from adjusting the annual rate in its sole discretion for future years only. If payment is not made within fifteen (15) days after the date of said written notice, Applicant shall at Districts sole option have no further right, title or interest under this Contract without further notice, and delivery may be immediately curtailed. The allotment ofwater, as herein made, may be transferred, leased, or otherwise disposed of at the discretion of the Board of Directors of the District. Upon cancellation of this water allotment Contract with the District, the District shall notify the Division of Water Resources offices in Denver and Glenwood Springs. The Division of Water Resources may then order cessation of all water use. 7. Additional Fees and Costs: Applicant agrees to defray any expenses incurred by the District in connection with the allotment of water rights hereunder, including, but not limited to, reimbursement of legal and engineering costs incurred in connection with any water rights and adjudication necessary to allow Applicant's use of such allotted water rights. 8. Assignment: This Contract shall not inure to the benefit of the heirs, successors or assigns of Applicant, without the prior written consent of the Districts Board of Directors. Any assignment of Applicants rights under this Contract shall be subject to, and must comply with, such requirements as the District may hereafter adopt regarding assignment of Contract rights and the assumption of Contract obligations by assignees and successors. Nothing herein shall prevent successors to a portion of Applicant's property from applying to the District for individual and separate allotment Contracts. No assignment shall be recognized by the District except upon completion and filing ofproperforms for assignment and change of ownership. In the event the water allotted pursuant to this Contract is to be used for the benefit of land which is now or will subsequently be subdivided or held in separate ownership, the Applicant may only assign the Applicant's rights hereunder to: 1) No more than three separate owners all of whom shall be party to a well sharing agreement satisfactory to the District; or 2) A homeowners association, water district, water and sanitation district or other special district properly organized and existing under the laws of the State of Colorado, and then, only if such parties, association or special district establishes to the satisfaction of the District that it has the ability and authority to perform the Applicants obligations under this Contract. In no event shall the owner of a portion, but less than all, of the Applicant's property to be served under this Contract have any rights hereunder, except as such rights may exist pursuant to a well sharing agreement or through a homeowners association or special district as provided above. Upon the sale of the real property to which this Contract pertains, Applicant shall make buyer aware of this Contract and proper forms for assignment and change of ownership must be completed. 9. Other Rules: Applicant shall be bound by the provisions of the Water Conservancy Act of Colorado; by the rules and regulations of the Board of Directors of the District; and all amendments thereof and supplements thereto and by all other applicable law. 10. Operation and Maintenance Agreement: Applicant shall enter into an "Operation and Maintenance Agreement" with the District under terms and conditions determined by the board of Directors of the District, if and when, the Board of said District determines in its sole discretion that such an agreement is required. Said agreement may contain, but shall not be limited to, provisions for additional annual monetary 3 • • • • consideration for extension of District delivery services and for additional administration, operation, and maintenance costs; or for other costs to the District which may arise through services made available to the Applicant. 11. Change of Use: The District reserves the exclusive right to review, reapprove or disapprove any proposed change in use of the water allotted hereunder. Any use other than that set forth herein or any lease or sale of the water or water rights allotted hereunder without the prior written approval of the District shall be deemed to be a material breach of this Contract. 12. Use and Place of Use: Applicant agrees to use the water in the manner and on the property described in the documents submitted to the District at the time this Contract is executed, or in any operation and maintenance agreement provided by Applicant. Any use other than as set forth thereon or any lease or sale of the water or water rights herein, other than as permitted in paragraph 8 above, shall be deemed to be a material breach of this agreement 13. Title: It is understood and agreed that nothing herein shall be interpreted to give the Applicant any equitable or legal fee title interest in or to any water or water rights referred to herein. 14. Conservation: Applicant shall use commonly accepted conservation practices with respect to the water and waterrights herein, and hereby agrees to be bound by any conservation plan adopted hereafter by the District for use of District owned or controlled water or water rights. 15. Restrictions: Applicant shall restrict actual diversions to not exceed the contract amount, which provides water (on the formula of one acre foot per dwelling) for ordinary household purposes inside one single family dwelling, the watering of domestic livestock, fire protection, and the irrigation of lawn and garden as specified in the Application. Applicant shall also comply with all restrictions and limitations set forth in the well penult obtained from the Colorado Division of Water Resources. Watering of livestock shall be restricted to Appli cant's domestic animals not to be used for commercial purposes unlessApplicant obtains approval from the Colorado Division of Water Resources for commercial use/livestock watering, provided that in no event shall actual diversions exceed the amount of water provided by this Contract. Violation of this paragraph 15 shall be deemed to be a material breach of this Contract. 16. Well Permit: If Applicant intends to divert through awell, then Applicant must provide to District acopy ofApplicants valid well permit before District is obligated to deliver any water hereunder. 17. Measuring Device or Meter: Applicant agrees to provide, at its own expense, a measuring device deemed acceptable by the Districts Engineer after consultation, or a totalizing flow meter with remote readout to continuously and accurately measure at all times all water diverted pursuant to the terms of Applicant's water right and the terms of this Contract. Applicant agrees to provide accurate readings from such device or meter to District upon District's request. Applicant acknowledges that failure to comply with this paragraph could result in legal action to terminate Applicant's diversion of water by the State of Colorado Division of Water Resources. By signing this Contract, Applicant hereby specifically allows District, through its authorized agent, to enter upon Applicants property during ordinary business hours for the purposes of determining Applicant's actual use of water. 4 18. Representations: By executing this Contract, Applicant agrees that it is not relying on any legal or engineeringadvice that Applicant may believe has been received from the District. Applicant further acknowledges that it has obtained all necessary legal and engineering advice from Applicant's own sources other than the District. Applicant further acknowledges that the District makes no guarantees, warranties, or assurances whatsoever about the quantity or quality of water available pursuant to this Contract. Should the District be unable to provide the water contracted for herein, no damages may be assessed against the District, nor may Applicant obtain a refund from the District. 19. Costs of Water Court Filing and Augmentation Plan: Should the District, in its own discretion, choose to include Applicant's Contract herein in a water court filing for alternate point of diversion or plan of augmentation, then Applicant hereby agrees to pay to the District, when assessed, an additional fee representing the Districts actual and reasonable costs and fees for Applicants share of the proceedings. Applicant shall be assessed a pro -rata share of the total cost incurred by the District in preparing, filing and pursuing to decree the water court case. The pro -rata share shall be calculated by dividing such total cost by the number of contractees included in the filing. To the extent that theDistrict is caused additional costs because of objection filed specifically due to the inclusion of Applicant's Contract in the filing, such additional costs may be charged specifically to Applicant and not shared on a pro -rata basis by all contractees. 20. Binding Agreement: This agreement shall not be complete nor binding upon the District unless attached hereto is the form entitled "Application to Lease Water From West Divide Water Conservancy District" fully completed by Applicant and approved by the District's engineer. Said attachments shall by this reference thereto be incorporated into the terms of this agreement. All correspondence from the District to Applicant referring to or relating to this agreement is by this reference incorporated into this agreement as further terms and conditions of this agreement. 21. Warning: TT IS THE SOLE RESPONSIBILITY OF THE APPLICANT TO OBTAIN A VALID WELL PERMIT OR OTHER WATER RIGHT IN ORDER TO DIVERT WATER, INCLUDING THE WATER ACQUIRED UNDER THIS CONTRACT. IT IS THE CONTINUING DUTY OF THE APPLICANT TO MAINTAIN THE VALIDITY OF THE WELL PERMIT OR WATER RIGHT INCLUDING FILING FOR EXTENSIONS OF PERMITS, FILING WELL COMPLETION REPORTS, FILING STATEMENTS OF BENEFICIAL USE, OR OTHERWISE LAWFULLY APPLYING THE WATER TO BENEFICIAL USE ON A REGULAR BASIS WITHOUT WASTE. 22. AREA B. CONTRACTS: IF APPLICANT'S WELL OR OTPXR WATER RIGHT THAT IS THE SUBJECT OF THIS CONTRACT IS LOCATED OUTSIDE "AREA A" AS DESIGNATED BY THE DISTRICT, THEN THIS PARAGRAPH APPLIES: THE AUGMENTATION WA 1 ER PROVIDED BY THE DISTRICT UNDER THIS CONTRACT MAY ONLY PROTECT APPLICANT'S WATER RIGHT FROM A CALL ON THE COLORADO RIVER AND MAY NOT PROTECT APPLICANT FROM A CALL FROM ANY OTHER SENIOR RIGHT. NO REPRESENTATION OTHERWISE IS MADE BY THE DISTRICT. IF THIS IS A CONCERN TO APPLICANT, THIS CONTRACT MAY BE RESCINDED UPON WRITTEN NOTICE DELIVERED TO THE DISTRICT BY THE APPLICANT WITHIN THE NEXT 30 DAYS FOLLOWING THE AFFIXING OF SIGNATURES ON THIS CONTRACT IN WHICH EVENT ALL SUMS PAID BY APPLICANT FOR THIS CONTRACT SHALL BE IMMEDIATELY REFUNDED TO APPLICANT. Applicant Applicant 5 • • STATE OF /10f p/-4do ) ss. COUNTY OF fljarcield ) The foregoing instrument &r/IS /r%CE AMANDA B. DUNN• t was acknowledged befo STATE OF ) ) ss. COUNTY OF ) The foregoing instrument day of /%%.2tCil . % [l} t0lbe4 seal. My commission expires: Notary Public was acknowledged before me on this day of , 20 , 20 D , by f , by . Witness my hand and official seal. My commission expires: Notary Public ORDER After a hearing by the Board of Directors of the West Divide Water Conservancy District on the Application, it is hereby ORDERED that said Application be granted and this Contract shall be and is accepted by the District. 11ES : WEST DIVIDE WATER CONSERVANCY DISTRICT By S4cretary President Date This Contract includes and is subject to the terms and conditions of the following documents which must accompany this Contract: 1. Map showing location of point of diversion (use map provided) 2. Application and Data Form fully completed and signed The printed portions of this form, except differentiated additions or deletions, have been approved and adopted by the West Divide Water Conservancy District Form #WDWCD 050901 CONTRACT. 6 • • DECLARATION OF PROTECTIVE COVENANTS ZIEGLER SUBDIVISION EXEMPTION THIS DECLARATION OF PROTECTIVE COVENANTS FOR THE ZIEGLER SUBDIVISION EXEMPTION is made and entered into this day of 2008, by Peregrine 08 Investments LLC, a Colorado limited liability company, whose address is 0092 County Road 227, Rifle, Colorado 81650. ARTICLE I PURPOSE OF COVENANTS This Declaration of Protective Covenants ("Declaration") shall govern and be applicable to that certain real property situated in Garfield County, Colorado, known as the Ziegler Subdivision Exemption ("Subdivision") consisting of four (4) lots ("Lots") as defined and described in the Ziegler Subdivision Exemption Plat ("Final Plat") heretofore recorded on , 2008, as Reception No. in the Office of the Clerk and Recorder of Garfield County, Colorado. It is the purpose of this Declaration to create rules and a decision making process to strengthen the community, to preserve the present natural beauty, character and views of the Subdivision to the greatest extent reasonably possible, and to always protect the Lots as much as possible with respect to uses, structures, landscaping and general development. This Declaration shall be a burden upon and run with all the lands within the Subdivision. ARTICLE II OWNERS - HOMEOWNERS ASSOCIATION A. Membership . All persons or other entities (including without limitation the Declarant) who own or acquire all or part of the fee simple title to any of the Lots by whatever means acquired shall be referred to herein as "Owners". Each person or entity who is the Owner of a respective Lot, or if more than one, all persons and entities collectively who are the Owners of a respective Lot shall automatically be considered to have, for each such Lot owned, one membership interest in the Ziegler Subdivision Home Owners Association ("Association"), a Colorado non-profit corporation, in accordance with the Articles of Incorporation of the Association, which have been filed with the Colorado Secretary of State, as the same may be duly amended from time to time and also filed with the Colorado Secretary of State. Each Owner and Member shall be entitled to the privileges and obligations enumerated in this Declaration and in the Articles of Incorporation and the Bylaws of the Association, as the same now exist or as they may be amended from time to time. B. Purpose . The Association shall be authorized and empowered to take each and every step necessary or convenient for the implementation and enforcement of this Declaration. The Association shall have the right and responsibility to maintain, preserve, repair and otherwise protect and promote the interests of the Owners with respect to all common properties and interests of the Owners and the Association. The Association shall maintain, repair, regulate and keep all roads and easements within the Subdivision including any such roads dedicated to the County of Garfield, Colorado in good, safe and usable condition to the extent that such may Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft #11.doc -1- be reasonably necessary, feasible and desirable. The Association may enter into agreements with third parties for the performance of the responsibilities of the Association above described. All costs and expenses incurred by the Association in connection with any of the foregoing shall be borne by the Members and shall be assessed, all as more fully provided herein. ARTICLE III . PERMITTED USES A. Primary Dwelling Units. Only one (1) single-family dwelling unit shall be permitted to be constructed on each Lot. The minimum size of a single-family dwelling shall be two thousand (2,500) square feet, exclusive of basements, open porches, decks, carports and garages. The maximum size of any single-family dwelling shall be nine thousand (9,000) square feet, exclusive of basements, open porches, decks, carports and garages. B. Outbuildings. Outbuildings including but not limited to, greenhouses, tool sheds, work areas, and the like, are permitted on all Lots within the Subdivision; provided however, that each garage shall be attached to a primary dwelling unit. The gross floor area of any single Outbuilding shall not exceed one thousand two hundred (1,200) square feet, and the total gross floor area of all Outbuildings on any single Lot shall not exceed two thousand two hundred (2,200) square feet. No such Outbuilding shall exceed eighteen (18) feet in height at the ridgeline. D. Agricultural Uses. The raising and harvesting of crops, gardening, greenhouse, nursery and orchard uses and activities shall be permitted within the Subdivision; provided however, that any and all such agricultural uses and activities shall remain subject to all other applicable provisions and restrictions of this Declaration, including but not limited to those contained within Article V, Sections F and G governing the stabling, boarding and keeping of animals and Article V Section H governing commercial uses. E. Other Uses. The following identified Other Uses shall be permitted within the Subdivision only upon the approval of the same by the Board of County Commissioners for Garfield County, Colorado pursuant to the applicable provisions of the Garfield County Zoning Regulations: 1. Arts and crafts studio 2. Home occupation ARTICLE IV. ARCHITECTURAL COMMITTEE A. Architectural Committee. So long as the Declarant owns a Lot within the subdivision, Declarant may from time to time, appoint and remove the members of the Q:\Z\Ziegler, Don\Subdivision Exemption TION OF PROTECTIVE COVENANTS Draft #141) -2- • • Architectural Committee in Declarant's sole discretion, and the Board of Directors of the Association (the "Board of Directors") shall have no authority to remove any member so appointed. Upon the sale of the last Lot owned by the Declarant, any new members of the Architectural Committee shall be appointed by the Board of Directors of the Association. The persons serving on the Architectural Committee shall serve at the pleasure of the Board of Directors who may remove a member of the Architectural Committee and appoint a new member at any time, provided there shall at all times be three (3) persons serving on the Architectural Committee. The members of the Architectural Committee may also be directors of the Association and need not be Owners. The Architectural Committee shall have and exercise all the powers, duties and responsibilities set out in this instrument. The Architectural Committee shall not be obligated to have regular meetings, but shall meet as necessary to conduct the business of the Committee. All members of the Committee shall be provided at least ten (10) days advance notice of all Committee meetings. B. Approval by Architectural Committee. No improvements of any kind, including, but not limited to, dwelling units, greenhouses, garages, tool sheds, work areas, fences, walls, driveways, towers, antennae, satellite dishes, kennels, exterior lighting, corrals, flagpoles, curbs and walks shall be constructed, erected, altered or permitted to remain within the Subdivision unless the complete architectural and site development plans and specifications (and such other items as are included in the "Plans" defined below) for such construction or alteration are approved by the Architectural Committee prior to the commencement of such work, except as Declarant may be specifically permitted to do by this Declaration or required to do by any subdivision improvements agreement between the Declarant and Garfield County. Re - vegetation of all in -fills and cuts will be required. At least three (3) complete sets of the architectural and site development plans and specifications (collectively "Plans") shall be submitted to the Architectural Committee. All copies of the Plans shall be signed and dated for identification by the Owner or his architect. The Architectural Committee shall have the right to request whatever additional specification information, plans, specifications, reports and the like it deems necessary to evaluate the development proposal throughout the approval and construction process. In addition, the Architectural Committee may adopt rules and regulations which shall specify additional information, reports, plans, specifications and the like required to be submitted to the Architectural Committee and to be deemed part of the Plans for all purposes hereunder. In the event the Architectural Committee fails to take any action within thirty (30) days after three (3) copies of the Plans have been submitted to it and the submittal has been certified in writing by the Architectural Committee as complete, then all of such submitted architectural plans shall be deemed to be approved. The Architectural Committee shall not unreasonably disapprove any Plans. The majority vote of the full number of members of the Architectural Committee then in office shall be required for any approvals described herein. C. Improvements — Site Location. All structures or improvements shall be constructed within the approved building envelopes depicted on the Final Plat. Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft # 1.doc - 3 - D. Building Permit. An Owner may apply for a building permit from the Garfield County Building department at any time; provided, however, that the Plans approved by the Building Department shall not differ in any substantial way from the Plans approved by the Architectural Committee. If the plans approved by the Building Department differ in any substantial way as determined by the Architectural Committee, then all approvals of the Architectural Committee shall be deemed automatically revoked. E. Variances. Unless specifically prohibited by a provision of this Declaration, the Architectural Committee may, by an affirmative vote of a majority of the full numbers of members of the Architectural Committee then in office, allow reasonable variances as to any of the covenants and restrictions governing architectural control contained in this Declaration and/or policies or rules promulgated by the Architectural Committee, on such terms and conditions as it shall require. No variance shall be granted which contravenes any provision of this Declaration which was required by an approval obtained by Declarant from Garfield County for the Subdivision or which violates the Garfield County Land Use and Building Codes. No variance shall be granted without written notice of the request for such variance provided ten (10) days prior to the hearing for said variance to all Owners. Notice to such Owners shall be deemed effective when placed in the United States mail, first-class postage prepaid, certified with return receipt requested, and addressed to the last known address for each Owner as provided to the Association. F. General Requirements. The Architectural Committee shall exercise its best judgment to see that all improvements and alterations within the Subdivision harmonize (to the greatest extent possible) with the natural surroundings within the Subdivision and with other structures and improvements within the Subdivision as to design, materials, color, siting, height, grade, finished ground elevation of neighboring lots, established drainage and other design features. 1. Materials. The Architectural Committee shall evaluate, among other things, the materials and colors to be used on the outside of buildings or structures, and the harmony of finished grade and floor elevation with the natural surroundings contained within the Subdivision. 2. Site Location. The Architectural Committee shall exercise its judgment to preserve the natural characteristics of each Lot including trees, vegetation, and the natural setting of each building site. The Architectural Committee shall evaluate the relationship of any proposed structure or improvement to topography, the view sheds of and relationships to other existing or potential structures and improvements in the Subdivision. G. Preliminary Approvals. Owners who anticipate constructing or modifying structures or improvements on a Lot may submit preliminary sketches or plans therof to the Architectural Committee for informal and preliminary approval or disapproval. All preliminary sketches should be submitted in at least three (3) sets and should contain sufficient general information on those matters required to be in the complete Plans to allow the Architectural Q:\Z\Zieg(er, Don\Subdivision Exemption\PARATION OF PROTECTIVE COVENANTS Draft #14111) -4- Committee to act intelligently in giving an informed preliminary approval or disapproval. The Architectural Committee shall never be committed or bound by any preliminary or informal approval or disapproval. The preliminary approval process is offered as an accommodation only, and the Architectural Committee may set fees for this service. H. Architectural and Site Development Plans. The Architectural Committee shall disapprove any Plans submitted to it which do not contain sufficient information for it to exercise the judgment required of it by this Declaration. I. Architectural Committee Not Liable. Neither the Architectural Committee nor any member thereof shall be liable for damages to any person or entity submitting any Plans for approval, or to any Owner or Owners, by reason of any action, failure to act, approval, disapproval or failure to approve or disapprove with regard to such Plans. Neither the Architectural Committee nor any member thereof shall have any liability or responsibility for any representations made to any Owner or prospective Owner by any third parties. The decisions of the Architectural Committee shall be governed by this Declaration and any rules or regulations duly adopted by the Architectural Committee pursuant to this Declaration. J. Written Records. The Architectural Committee shall keep and safeguard for at least five (5) years complete permanent written records of all approved applications, including one (1) set of the finally approved Plans, and of all actions of approval or disapproval and all other formal actions taken by it under the provisions of this Declaration. K. Authority to Promulgate Rules and Regulations. The Architectural Committee may promulgate and adopt rules and regulations necessary to implement this Declaration. These rules and regulations may include submission requirements concerning the type of information, reports, plans and specifications, and other information necessary to make an informed decision regarding requests for development, alterations and the like. ARTICLE V . RESTRICTIONS AND PROTECTIVE COVENANTS A. No Further Subdivision. No Lot shall ever be further subdivided into smaller lots or conveyed or encumbered in less than the full dimensions as shown on the recorded Final Plat; provided however, that conveyances or dedications or easements, if approved by the Architectural Committee, may be made for less than the full dimensions of a Lot. Notwithstanding the foregoing, a lot line adjustment between two (2) Lots shall be allowed, subject, however, to any reviews or approvals that may be required by the Garfield County Land Use Code and the prior approval of the Architectural Committee. B. Duplexes/Multi-Family Structures. Duplexes and multi -family structures are prohibited in the Subdivision. Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft #1.doc -5- C. Fencing. Fencing shall be restricted throughout the Subdivision to facilitate wildlife movements, optimize habitat availability, and reduce wildlife mortality. If peripheral fencing of a Lot is required to restrict domestic livestock grazing on adjacent properties, fencing shall employ a natural color. Wood rail fencing which is used it shall not exceed forty-two (42) inches in height and twelve (12) inches in width (top view), and an opening in the lower one-half ('/) of at least sixteen (16) inches to allow passage of deer fawns and elk calves. 1. Owners shall be permitted a privacy fence, exceeding forty-two (42) inches in height with no openings, to enclose up to two thousand five hundred (2,500) square feet, providing it is immediately adjacent to the residential unit and is contained entirely within the respective Lot's building envelope. 2. If security fencing is required such fencing shall not be more than seven (7) feet in height and must be so constructed that wildlife movement between and through the Subdivision and the Lots is not lost or impaired. D. Lighting. All exterior lighting shall be directed downward and towards the applicant's property. The Architectural Committee will also recommend that all Owners make every effort possible to limit the use of exterior lighting at night and shall encourage Owners to build in such a fashion that all light sources not be directly visible from outside of the Owners' respective Lot. The intent behind these considerations is to preserve the rural character of the Subdivision by limiting exterior lighting as much as possible while maintaining a safe atmosphere. Domestic Animals. Except as expressly limited herein, domestic animals such as dogs, cats, rabbits, caged birds and fish shall be permitted subject to any rules and regulations, which may be promulgated by the Board of Directors. Owners shall be entitled to keep dogs on their property pursuant to the following restrictions and limitations and subject to any additional rules and regulations which may be romulgated by the Association: 1. In conformance with the Garfield County Subdivision Regulations, no more than one dog, excluding puppies under the age of fifteen (15) weeks, shall be kept by any Owner at any time upon any one (1) Lot; provided however, that in the event that Garfield County amends the above identified Subdivision Design Standard to allow the keeping of more than one (1) dog per Lot, this provision shall automatically be amended to incorporate said increase. 2. Dogs shall be kept under the control of their Owners at all times and shall not be permitted to fun free or to cause a nuisance in the Property. No dogs shall be allowed beyond the boundaries of the Lot owned by the person(s) where the dog is housed unless leashed and accompanied by a person in full control of such dog. Q:\Z\Ziegler, Don\Subdivision Exemption ARATION OF PROTECTIVE COVENANTS Draft #1. -6- 3. Dogs shall not be allowed to bark continuously, which shall be defined as barking for a continuous fifteen (15) minute period, including successive barks or a series of barks which repeat or resume following a brief or temporary cessation. 4. When not accompanied by a person, all dogs shall be leashed, chained, "electric fenced," or kenneled. The location of kennels shall be subject to review of the Architectural Committee. 5. All dogs shall be kept reasonably clean, and all Lots shall be free of refuse and animal waste. 6. Should any dog chase or molest deer, elk or any domestic animals or persons, or destroy or disturb property of another, the Association shall be authorized to prohibit the Owner or any tenant, invitee, event, guest or other user of a Lot from continuing to maintain the offending animal on his property and may take any action necessary to remove the offending animal from the Subdivision. The offending dog owner shall be provided written notice of such action at least two (2) days before removal occurs. Within such two (2) day period, the offending dog shall be kenneled at a licensed kennel. All charges associated with action taken by the Association may be assessed against either the Owner and/or the dog owner, or both, at the Association's sole option. 1 7. Notwithstanding the foregoing, no animal may be kept upon a Lot which, in the sole discretion and judgment of the Executive Board results in any annoyance or is obnoxious to other Owners within the Subdivision. F. Horses. The open pasturing of horses shall be permitted within the Subdivision; however, no more than (2) horses may be kept on any (1) Lot. G. Ranch and Farm Animals. Ranch or farm animals including but not limited to, attle, llamas, goats, pigs, and sheep shall be permitted within the Subdivision for the purpose of allowing the participation by Lot Owners and the members of their families in 4-1-1, Future Farmers of America or such other similar programs only. All such ranch or farm animals shall -4\ .e at all times properly penned or corralled within the respective Lot Owner's Lot and shall not in • y event be allowed to remain within the Subdivision for a time period greater than one (1) 4 year. H. Underground Utility Lines. All water, sewer, gas, electrical, telephone, cable television and other utility pipes or lines within the limits of Subdivision shall be buried underground and not be carried on overhead poles or above the surface of the ground. Any areas of natural vegetation or terrain in the Subdivision disturbed by the burying of utility lines shall be re -vegetated by and at the expense of the respective Owners causing the installation of the utilities no later than the next growing season following installation. I. Service Yards and Trash. Equipment, service yards or storage piles on any Lots shall be permitted during the time periods during which construction activities are ongoing. Otherwise, no lumber, metals, equipment or bulk materials shall be kept, stored or allowed to accumulate outside on any Lot unless the same are appropriately screened from the views of Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft #1.doc. -7- other Lot Owners. All scraps, refuse and trash shall be removed from all Lots, shall not be allowed to accumulate and shall not be burned thereon. J. No Mining, Drilling or Quarrying. Mining, quarrying, tunneling, excavating or drilling for any other substances within the earth, including oil, gas, minerals, gravel, sand, rock and earth, shall not be permitted within the limits of the Subdivision. K. K. Domestic Water Wells. Domestic water service for Lots 2, 3 and 4 shall be provided by that water well permitted under Well Permit No. 67672-F as that well is augmented under West Divide Water Allotment Contract No. 070419EastDZ(a), which Well Permit and Water Allotment Contract shall be assigned by the Declarant to the Association the filing of this Declaration in the records of the Clerk and Recorder for Garfield County, olorado. At all times each Owner and the Association shall abide by and comply with the terms, conditions and provisions contained within the Well Permit and Water Allotment Contract. ,By execution hereof the Association is granted the authority and imposed the obligation to accept said assignment of the Well Permit and Water Allotment Contract. The Association shall be respons e, operation, repair and replacement of the Water Well, inclups and appurtenant facilities, and for the timely payment of all fees, chargesn s imposed by the West Divide Water Conservancy District under the Water Allotment Contract. All such expenses, fees, charges and assessments shall constitute an Assessment(s) as defined under Article VII, Infra., as against Lots 2, 3 and 4 and the Association, as to all such Assessments shall be conferred all the rights, powers and duties set forth within said Article VII. All such Assessments shall be levied against ots 2, 3 and 4, pro rata. The Association instant to the performance of its duties and responsibilities hereinabove stated shall be entitled to access all areas and properties encompassed within the Water Well and Pipeline Easement more fully described within the Final Plat. In the event the Association should fail to perform any of the duties hereinabove set forth, he Owners, individually or collectively shall have the authority, following the provision of imely notice to the Association, to perform or have performed said duties in the place and stead f the Association. In the event of a health hazard or cessation of service, "timely notice" as set forth hereinabove shall be deemed to constitute no more than twenty-four (24) hour advance oral notice. All costs incurred by said Owner or Owners shall be reimbursed thereto by the Association pursuant to the Assessment procedures set forth within Article VII. Domesti service to Lot 1 shall be provided by that water well permitted under Well Permit N . as augmented under West Divide Water Allotment Contract Ns.d. ; which Well P and Water Allotment Contract shall be assigned by the Declarant to t - Owner upon the sale or transfer of Lot 1 by the Declarant. At all times thereafter, the Owner of Lot 1, individually, shall be responsible for the operation, maintenance, repair and replacement of the Water Well, including all water lines, pumps and appurtenant facilities, and all fees, charges and assessments imposed by the West Divide Water Conservancy District under the Water Allotment Contract. Q:\Z\Ziegler, Don\Subdivision Exemption\DSRATION OF PROTECTIVE COVENANTS Draft # 1.ao -8- 40 L. Primary Access. Primary access to the Subdivision from State Highway 6&24 is along the private driveway dedicated to the association under the Final Plat. The costs of maintaining the said private driveway shall be borne exclusively by the Association in accordance with the provisions of this Declaration. M. Hunting. Hunting shall be prohibited within the Subdivision. In the event of conflict with wildlife on a Lot, the Owner shall contact the Colorado Division of Wildlife to determine appropriate measures to mitigate the conflict. Wildlife which constitutes a nuisance may only be removed or destroyed upon the approval of the Association and only in a manner approved by the Colorado Division of Wildlife. N. Trash Containers. All trash or garbage shall be contained within containers certified as bear -proof by the North American Bear Society, the National Park Service or the Colorado Division of Wildlife; provided however, that a Lot Owner may use trash or garbage containers which do not meet the certifications above described so long as: 1. Said container(s) is placed outside no earlier than the morning of the scheduled day of for trash collection by the Owner's waste service provider; and 2. Said container(s) is returned to the dwelling structure on the same day of collection by the Owner's waste service provider. O. Damage Waiver. The Association and the Lot Owners hereby waive and shall hold the Colorado Division of Wildlife harmless from any and all claims for damages to landscaping improvements or ornamental plants located within the subdivision resulting from the activities of big game (deer and/or elk). P. Removal of Carcasses. The Association and Owners shall be responsible for the removal and proper disposal of all animal carcasses located within the Subdivision. Q. Penalties/Wildlife Restrictions. The Association shall assess and enforce penalties against Lot Owners violating any of the wildlife restrictions set forth in this Article V. as follows: One Hundred Dollars ($100.00) for the first violation committed by the Lot Owner; Two Hundred Dollars ($200.00) for the second violation: Three Hundred Dollars ($300.00) for the third violation: and for each succeeding violation the fine shall increase in One Hundred Dollar ($100.00) increments. The dollar amounts of the fines may be changed upon the approval of the Association. ARTICLE VI . RESTRICTIONS ON LOTS A. Number and Location of Buildings. No buildings or improvements of any kind shall be placed, erected, altered or permitted to remain on any Lots except as approved by the Architectural Committee. B. Completion of Construction. Any construction activity on any Lot shall be completed and fully cleaned up within eighteen (18) months from the issuance of a building Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft #1.doc -9- permit, unless the Owner of the Lot shall first obtain a variance from the Architectural Committee to allow for a longer period of construction upon proof of due diligence. In the event a variance is not secured and eighteen (18) months from issuance of a building permit has passed, the Board of Directors may assess penalties in the amount of $100.00 per day. Owners shall obtain all required certification of acceptance for residential dwelling within eighteen (18) months of the issuance of building permits unless a variance extending such time period is issued by the Architectural Control Committee. C. Used or Temporary Structures. Except within an enclosed garage, no used or previously erected or temporary house, structure, mobile home, manufactured home, or trailer shall be located within the Subdivision. The foregoing prohibition shall not apply to construction trailers which shall be permitted for eighteen (18) months from the date of commencement of construction or until the issuance of a Certificate of Occupancy, whichever first occurs; provided, however, construction trailers may only be used for construction, office and storage purposes and shall not be occupied as a residence for any period of time. D. Enclosure of Unsightly Facilities and Equipment. All unsightly structures, facilities, equipment and other items, including, but not limited to, those specified below, shall be enclosed within a solid structure sufficient to screen such things from view from the common roads and neighboring homes to the greatest extent possible. Any motor home, trailer, camper, recreational vehicle, boat, truck, tractor, motorcycle, all terrain vehicle, snow removal or garden equipment and any similar items shall be kept at all times, except when in actual use, in an enclosed garage. Any propane or other fuel storage tanks shall be appropriately screwed on, in accordance with all applicable governmental rules and regulations. Any storage piles, refuse or trash containers, utility meters or other facilities, shall be enclosed within a structure or appropriately screened from view by plantings or fencing approved by the Architectural Committee and adequate to conceal the same from neighbors, streets and private roads. E. Noxious or Offensive Activity or Sounds. No noxious or offensive activity or sounds shall be carried on upon any portion of the Subdivision at any time, nor shall anything be done or permitted which may be or become a nuisance to other property or to the Owners thereby sight or sound, provided that the Board of Directors may authorize the use of sound and sound devices to control or manage wildlife, livestock or domestic animals. F. Air Quality Restrictions. In order to protect against the degradation which occurs to air quality as a result of the utilization of wood -burning devices, the following restrictions apply: 1. No open-hearth solid fuel fireplaces will be allowed anywhere within the Subdivision. 2. All dwelling units within the Subdivision will be allowed an unrestricted number of natural gas burning fireplaces or appliances. 3. All dwelling units within the Subdivision will be allowed one (1) new wood - burning stove as defined by Colorado Revised Statutes 25-7-401 et seq., and the regulations promulgated thereunder. Q:1Z\Ziegler, Don\Subdivision Exemption\LRATION OF PROTECTIVE COVENANTS Draft 41. 1 - 10 - or G. Firearms. The discharge or shooting of firearms is prohibited in the Subdivision except as may be permitted by rules and regulations adopted by the Board of Directors. H. Commercial Activities. Neither the conduct of any commercial activities nor the storage of materials, goods, equipment and other items used or associated with commercial activities shall be permitted on any Lot; provided, however, that personal vehicles with a business name placed thereon shall not be prohibited and Owners shall be permitted to maintain an office on their respective Lots so long as services are not provided which result in the public coming to such Lot on a regular basis. Home occupation shall be allowed within a Lot so long as the respective Owner thereof obtains all required Conditional Use permit approvals from Garfield County, Colorado. 1. General Restriction. All Lots shall comply with restrictions contained in any other section of this Declaration. The Board of Directors may adopt, promulgate and enforce rules, regulations necessary or advisable to implement or interpret the provisions of this Declaration. ARTICLE VII. COLLECTION OF ASSESSMENTS — ENFORCEMENT A. Assessments. All Owners shall be obligated to pay any assessments lawfully imposed by the Board of Directors. To the extent the Association is responsible therefor, assessments may be lawfully imposed for any items of common expense which may include, among other things: expenses and costs of maintaining, repairing and plowing of roads within and accessing the Subdivision, expenses of the Architectural Committee; insurance, accounting and legal functions of the Association and all costs incurred by the Association pursuant to Article V, Section K. The Board of Directors may establish contingency and reserve funds necessary to satisfy the maintenance of the Association's obligations and to fund any other anticipated costs and expenses of the Association to be incurred in pursuit of its purposes. Contingency and reserve funds shall be in such an amount as the Board of Directors may deem necessary and appropriate for the aforesaid purposes. Each Owner shall be required to pay his pro -rata portion of these funds. As used herein, an Owner's pro -rata portion of common expenses shall mean a fraction formed by the number of Lots purchased and held by the Owner (numerator) and the number of Lots in the Subdivision (denominator). The Board of Directors shall have the right during any calendar year to levy and assess against all of the Owners a special assessment for such purposes or purposes, in accordance with this Declaration, the Articles or the Bylaws of the Association, as may be necessary or advisable. Such special assessment shall be paid for by the Owner(s) obligated to pay such assessment and shall be due and payable as determined by the Board of Directors. B. Lien for Nonpayment of Assessments. All sums assessed by the Board of Directors, any fines which may be levied on an Owner, and unpaid utility fees and assessments charged to an Owner, shall constitute a lien against such Lot superior (prior) to all other liens and encumbrances, excepting only: Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft # 1.doc 1. Tax and special assessment liens on the Lots in favor of any governmental assessing unit; and 2. All sums unpaid on a first mortgage of record, including any unpaid obligatory sums as may be provided by encumbrance. Each Owner hereby agrees that the Association's lien on a Lot for assessments as herein above described shall be superior to the homestead exemption provided by Colorado Revised Statutes §38-410-201, et seq., and each Owner hereby agrees that the acceptance of the deed or other instrument of conveyance in regard to any Lot shall signify such grantee's waiver of the homestead right granted in 'said section of the Colorado statutes. Any recorded lien for non-payment of the common expenses may be released by recording a release of lien executed by a member of the Board of Directors. If any assessment shall remain unpaid after thirty (30) days after the due date thereof, such unpaid sums shall bear interest from and after the due date thereof at the maximum rate of interest permitted by law, or at such rate as is determined by the Board of Directors, and the Board of Directors may impose a late charge on such defaulting Owner as may be established by the Board of Directors. In addition, the Board of Directors shall be entitled to collect reasonable attorneys' fees incurred in connection with any demands for payment and/or collection of delinquent assessments. To evidence such lien, the Board of Directors shall prepare a written notice setting forth the amount of such unpaid indebtedness, the name of the of the Lot and its legal description. Such a notice shall be signed by one (1) member of the Board of Directors and shall be recorded in the Office of the Clerk and Recorder of the County of Garfield, Colorado. Such lien may be enforced by foreclosure of the defaulting Owner's Lot by the Association in like manner as a mortgage on real property upon the recording of a notice of claim thereof. In any such foreclosure, the Owner shall be required to pay the costs and expenses of such proceedings, the costs and expenses for filing the notice or claim of lien, and all reasonable attorneys' fees. The Owner shall also be required to pay to the Association any additional assessments against the Lot during the period of foreclosure, and the Association shall be entitled to the appointment of a receiver to collect the same. The Board of Directors of the Association shall have the power to bid on the Lot at a foreclosure sale and acquire and hold, lease, mortgage and convey the same. The Association, at its election, and in addition to any other remedies it may have at law or in equity, may also sue an Owner personally to collect any monies owed the Association. C. Enforcement Action. The Association, acting by and through its Board of Directors, shall have the right to prosecute any action to enforce the provisions of all of this Declaration by injunctive relief, on behalf of itself and all or part of the Owners. In addition, each Owner and the Association shall have the right to prosecute any action for injunctive relief and for damages by reason of any violation of this Declaration. The prevailing party in any enforcement action shall be entitled to an award of its reasonable costs and attorneys' fees. The Board of Directors shall be entitled to assess penalties for late payment of assessments due the Association and to collect interest thereon at rates to be determined from time to time by the Board of Directors but not to exceed one and one-half percent (11/2%) per month. After thirty Q:\Z\Ziegler, Don\Subdivision Exemption\DTION OF PROTECTIVE COVENANTS Draft # 1.d - 12 - • (30) days written notice to any Owner of a violation of this Declaration and the Owner's failure to eliminate or cure said violation, the Association may levy, in addition to the other remedies set forth herein, a penalty of up to One Hundred Dollars ($100.00) per day for every day the violation exists or continues after the expiration of said thirty (30) day period. D. Limitations on Actions. In the event any construction, alteration or landscaping work is commenced upon any of the Lots in violation of this Declaration and no action is commenced within one (1) year thereafter to restrain such violation, then injunctive or equitable relief shall be denied, but an action for damages shall still be available to any party aggrieved. This one (1) year limitation shall not apply to injunctive or equitable relief against other violations of this Declaration. ARTICLE VIII. RESERVED EASEMENTS A. Easements Shown on Final Plat. The Association is entitled to use such easements as are reflected on the Final Plat for the Subdivision. The Association shall have no obligation to pay any amount for the use and enjoyment of such easements. The Association shall pay for the cost of maintaining and repairing any improvements, which it places on any easements. B. Easements for Utilities, Access and Repairs. There are hereby reserved unto Declarant (so long as the Declarant owns a Lot within the Subdivision, the Association, and the designees of each (which may include, without limitation, Garfield County, Colorado and any utility company) easements upon, across, over and under all of the Lots, with the exception of the building envelope, to the extent reasonably necessary for the purpose of installing, replacing, repairing, and maintaining water wells and all pipes and appurtenances thereto cable television systems, master television antenna systems, security and similar systems, roads, walkways, bicycle pathways, drainage systems, irrigation systems, street lights, signage, and all utilities, including, but not limited to, meter boxes, telephone, gas and electricity. The foregoing easements may traverse the private property of any Owner; provided, however, an easement shall not entitle the holders to construct or install any of the foregoing systems, facilities, or utilities over, under or through any existing dwelling on a Lot or building envelope as shown on the Plat, and any damage to a Lot resulting from the exercise of an easement shall be reasonably repaired by, and at the expense of, the Person exercising the easement. The exercise of an easement shall not unreasonably interfere with the use of any Lot and, except in any emergency, entry onto any Lot shall be made only after reasonable notice to the Owner or occupant. Declarant specifically reserves the right to convey to the electric company, natural gas supplier and cable television or communications systems supplier and any other utility supplier an easement across any portion of the Subdivision for ingress, egress, installation, reading, replacing, repairing and maintaining utility meters and boxes. However, the exercise of this easement shall not extend to permitting entry into the dwelling on the Lot, nor shall any utilities be installed or relocated on any Lot, except as approved by the Association or Declarant. Should any entity furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, the Association or Declarant shall have the right to grant such specific, descriptive easement over the Subdivision Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft # 1.doc - 13 - Property without conflicting with the terms hereof. The easements provided for in this Article shall in no way adversely affect any other recorded easement on the Property. The Owner of a Lot subject to such easement shall cooperate with Declarant and the Association and take all actions, including, without limitation, executing any documents evidencing such descriptive easement as reasonably requested by the Association or Declarant. ARTICLE IX. INSURANCE A. Types of Insurance. The Association may obtain and keep in full force and effect the following insurance coverage: 1. Fidelity coverage against the dishonesty of employees, destruction or disappearance of money or securities, and forgery. This policy shall also cover persons who serve the Association without compensation. 2. Coverage for members of the Board of Directors and officers of the Association, including committee members, against libel, slander, false arrest, invasion of privacy, errors and omissions, and other forms of liability generally covered in officers and directors liability policies. 3. General liability and property insurance. 4. Coverage against such other .risks of a similar or dissimilar nature as the Board of Directors deems appropriate. ARTICLE X. GENERAL PROVISIONS A. Declaration to Run. All of the covenants, conditions and restrictions contained in this Declaration shall be a burden on the title to all of the lands in the Subdivision, the benefits thereof shall inure to the Owners, and the benefits and burdens of all said covenants, conditions and restrictions shall run with the title to all of the lands in the Subdivision. B. Termination of Declaration. In the event this Declaration has not been sooner lawfully terminated pursuant to any applicable laws of the State of Colorado and Garfield County, Colorado, and the provisions herein contained, this Declaration may be terminated on January 1, 2032, by a majority vote of the votes entitled to be cast by the Members of the Association at a meeting of the members duly held. If this Declaration is not so terminated, then it shall continue to be in full force and effect for successive twenty-five (25) year periods unless, at the close of a twenty-five (25) year period, this Declaration is terminated by a majority vote of the votes entitled to be cast by the members of the Association at a meeting of the Members duly held. In the event of any such termination by the members, a properly certified copy of the resolution of termination shall be placed on record in Garfield County, Colorado, not more than six (6) months after the meeting at which such vote is cast. Q:\Z\Ziegler, Don\Subdivision Exemption er \D TION OF PROTECTIVE COVENANTS Draft #1. - 14 - 40 • C. Amendment of Declaration. This Declaration may be amended by a majority vote of the votes entitled to be cast by the Members of the Association, said vote to be cast at a meeting of the Members duly held, provided a properly certified copy of the resolution of amendment be placed on record in Garfield County, Colorado, no more than six (6) months after said meeting. D. Severability. Should any part or parts of this Declaration be declared invalid or unenforceable by any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Declaration. E. Paragraph Headings. The paragraph headings within this Declaration are for convenience only and shall not be construed to be a specific part of the terms hereof. F. Limited Liability. The Association and Board of Directors shall not be liable to any part for any action or for any failure to act with respect to any matter if the action taken or failure to act was in good faith without malice. The Owners severally agree to indemnify the Association and the Board of Directors against loss resulting from such action or failure to act if the Association and the Board of Directors acted or failed to act in good faith and without malice. IN WITNESS WHEREOF, this Declaration of Protective Covenants for Ziegler Subdivision Exemption has been executed as of the date and year first written above. DECLARANT: Peregrine 08 Investments, LLC, a Colorado limited liability company Don Ziegler, Manager STATE OF COLORADO ) ) ss. COUNTY OF Garfield ) The foregoing instrument was acknowledged and sworn to before me this day of , 2008, by the Don Zielger, Manager for Peregrine 08 Investments, Declarant. WITNESS my hand and official seal. My Commission expires: Notary Public Q:\Z\Ziegler, Don\Subdivision Exemption\DECLARATION OF PROTECTIVE COVENANTS Draft # 1.doc - 15 - STATE OF MaORADO Region 3 Traffic Section 222 S. Sixth St., Room 100 Grand Junction, Colorado 81501 (970) 683-6284 Fax:(970) 683-6290 November 17, 2008 MCIIIIMEIMINEEMOMM i DEPARTMENT OF TRANSPORTATION Tim Thulson 818 Colorado Avenue Glenwood Springs, CO 81601 RE: State Highway Access Permit No. 308123, Located on Highway 006, Milepost 96.88, in Garfield County. Dear Permittee or Applicant: The Colorado Department of Transportation (CDOT) has received your signed permit and application fee. A copy of the issued permit enclosed. The next step in the CDOT access permitting process is for you (Applicant) to obtain a Notice to Proceed (NTP). Failure to obtain an approved Notice to Proceed prior to any construction will be a violation of the State Highway Access Code (2 CCR 601-1,"the Code") § 2.4. Notice to Proceed Information Well in advance of construction, the Applicant shall request a NTP in writing along with submitting other items, such as construction drawings, specifications, and other required documents to CDOT. The Applicant must submit a complete packet of this information to CDOT with their written request. If the Applicant chooses not to request the NTP, the permit expires pursuant to subsection 2.3(11)(d). CDOT has seven days to determine if the NTP submittal is complete for review and then notify the applicant of any deficiencies. If complete, CDOT will review and comment on the submitted information within 30 -days. If CDOT determines the information is unacceptable, missing, or in need of correction, the Applicant shall correct their submittal and resubmit the complete request for NTP. Once resubmitted, CDOT will review the revised NTP documents within 10 -days. If the revised documents are satisfactory, CDOT will issue a NTP. If further corrections are necessary, the cycle of submittal, review and comments will repeat itself until approval is granted and the NTP is issued. The request for NTP shall include the following documents, along with any other items specified in the Terms and Conditions of your permit: 1) Cover Letter Requesting a NTP (include firm name, PE name and contact number) 2) Traffic Control Plan (3 copies) The traffic control plan must be: A. Consistent with CDOT Standard Plans Manual for Maintenance and Signing B. Consistent with the MUTCD C. Prepared by individual with American Traffic Safety Services Association (ATSSA) or Colorado Contractors Association certification — or sealed (stamped) by a Colorado registered professional engineer D. Acceptable to CDOT prior to any construction within the right-of-way E. Presented in a manner that provides a method of handling traffic (MHT) for each different phase of construction. The MHT will describe proposed construction phasing and will include dimensioned diagrams of work zone elements. The final traffic control plan must be submitted a minimum of three working days in advance of construction. Such plans may be revised as necessary with CDOT concurrence. 3) Insurance Liability Certification The Applicant or contractor shall be required to provide a comprehensive general liability and property damage insurance naming CDOT as an additional insured party, in the amounts of not less than $1,000,000 per occurrence and automobile liability insurance of $1,000,000 combined single limit bodily injury and property damage for each accident, during the period of access construction. 4) Complete Construction Plans The Applicant shall provide two copies of 11" x 17" construction plans and specifications for the proposed improvements. The plans shall: A. Address, as applicable, geometry, drainage, striping, signing, and signalization B. Include, but not limited to, layout of the access, highway improvements, utility locations, present and proposed drainage, present and proposed right-of-way lines, present and proposed traffic control devices, and clear zone analysis C. Sealed by a Colorado Professional Engineer in accordance with CRS 12-25-117 D. Conform to the requirement of the permit terms and conditions E. Include the following statement on the cover page of the plans: "This design is in full compliance with Section 4 of the State Highway Access Code, 2 CCR 601-1 except for the following approved design waivers:" Feel free to contact me with any questions you might have. Respectfully, Dan Roussin Region 3 Access Manager 1 CDOT Permit No. 1 COLORADO DEPARTMENT OWRANSPORTATION w 308123 STATE HIGHWAY ACCESS PERMIT State Highway No/Mp/Side 006 D / 96.880 / L Permit fee $100.00 Date of transmittal 9/18/2008 Region/Section/Patrol 3 / 02 / 10-2 Alen Hayes Local Jurisdiction Garfield County The Permittee(s); Applicant; Ref No.: Peregrine 08 Investments Tim Thulson Don Ziegler 0092 County Road 227 818 Colorado Avenue Rifle, CO 81650 Glenwood Springs, CO 81601 970-379-1280 970-945-6546 is hereby granted permission to have an access to the state highway at the location noted below. The access shall be constructed, maintained and used in accordance with this permit, including the State Highway Access Code and any attachments, terms, conditions and exhibits. This permit may be revoked by the issuing authority if at any time the permitted access and its use violate any parts of this permit. The issuing authority, the Department and their duly appointed agents and employees shall be held harmless against any action for personal injury or property damage sustained by reason of the exercise of the permit. Location: Located on the north side of Hwy 6, a distance of 300 feet west of Hwy 97. 2700 feet east of CR 277 (Miller Road) Access to Provide Service to: (Land Use Code:j (Size or Count) (Units) 210 - Single -Family Detached Housing (4 units) 4 DHV Additional Information: Please review additonal terms and conditions. MUNICIPALITY OR COUNTY APPROVAL Required only when the appropriate local authority retains issuing authority. Signature Print Name Title Date Upon the signing of this permit the permittee agrees to the terms and conditions and referenced attachments herein. All construction shall be completed in an expeditious and safe manner and shall be finished within Initiation. The permitted access shall be completed in accordance with the terms and conditions of the permit being used. The permittee shall notify D'Wavne Gavmon with the Colorado Department of Transportation in Grand Junction, Colorado at (970) 683-3355, at least 48 hours prior to commencing construction within the State Highway right-of-way. The person signing as the permittee must be the owner or legal representative of the property served by the permitted access and accept the permit and its terms and conditions. contained 45 days from prior to have full authority to Permittee e - - Print Name ) y) 2-t tE Lt� Date /�/e 0 This permit is not valid until signed by a duly authorized representative of the Department. COLORADO DEPARTMENT OF TRANSPORTATION Signa/tur j �� Prl t Name q p r- < ix�—`-�k� �(.r c,u 1r1 '� Tide %i ✓lh1 1� z1 l�hl►fr-�i Date (of issue) • Date /�J/ �r ^� T`U I t d rna not be used Copy Distribution: Required: 1.Region 2.Appiicant Make copies as necessary for: 3.Staff Access Section Local Authority Inspector 4.Central Files MTCE Patrol Traffic Engineer revi y Page 1 of 3 CDOT Form #101 5/07 State Highway Access Permit Form 101, Page 2 The following paragraphs are excerpts of the State Highway Access Code. These are provided for your convenience but do not alleviate compliance with all sections of the Access Code. A copy of the State Highway Access Code is available from your local issuing authority (local government) or the Colorado Department of Transportation (Department). When this permit was issued, the issuing authority made its decision based in part on information submitted by the applicant, on the access category which is assigned to the highway, what alternative access to other public roads and streets is available, and safety and design standards. Changes in use or design not approved by the permit or the issuing authority may cause the revocation or suspension of the permit. APPEALS 1. Should the permittee or applicant object to the denial of a permit application by the Department or object to any of the terms or conditions of a permit placed there by the Department, the applicant and permittee (appellant) have a right to appeal the decision to the [Transportation] Commission [of Colorado]. To appeal a decision, submit a request for administrative hearing to the Transportation Commission of Colorado within 60 days of transmittal of notice of denial or transmittal of the permit for signature. Submit the request to the Transportation Commission of Colorado, 4201 East Arkansas Avenue, Denver, Colorado 80222-3400. The request shall include reasons for the appeal and may include changes, revisions, or conditions that would be acceptable to the permittee or applicant. 2. Any appeal by the applicant or permittee of action by a local issuing authority shall be filed with the local authority and be consistent with the appeal procedures of the local authority. 3. In submitting the request for administrative hearing, the appellant has the option of including within the appeal a request for a review by the Department's internal administrative review committee pursuant to [Code] subsection 2.10. When such committee review is requested, processing of the appeal for formal administrative hearing, 2.9(5) and (6), shall be suspended until the appellant notifies the Commission to proceed with the administrative hearing, or the appellant submits a request to the Commission or the administrative law judge to withdraw the appeal. The two administrative processes, the internal administrative review committee, and the administrative hearing, may not run concurrently. 4. Regardless of any communications, meetings, administrative reviews or negotiations with the Department or the internal administrative review Committee regarding revisions or objections to the permit or a denial, if the permittee or applicant wishes to appeal the Department's decision to the Commission for a hearing, the appeal must be brought to the Commission within 60 days of transmittal of notice of denial or transmittal of the permit. PERMIT EXPIRATION 1. A permit shall be considered expired if the access is not under construction within one year of the permit issue date or before the expiration of any authorized extension. When the permittee is unable to commence construction within one year after the permit issue date, the permittee may request a one year extension from the issuing authority. No more than two one-year extensions may be granted under any circumstances. If the access is not under construction within three years from date of issue the permit will be considered expired. Any request for an extension must be in writing and submitted to the issuing authority before the permit expires. The request should state the reasons why the extension is necessary, when construction is anticipated, and include a copy of page 1 (face of permit) of the access permit. Extension approvals shall be in writing. The local issuing authority shall obtain the concurrence of the Department prior to the approval of an extension, and shall notify the Department of all denied extensions within ten days. Any person wishing to reestablish an access permit that has expired may begin again with the application procedures. An approved Notice to Proceed, automatically renews the access permit for the period of the Notice to Proceed. CONSTRUCTION 1. Construction may not begin until a Notice to Proceed is approved. (Code subsection 2.4] 2. The construction of the access and its appurtenances as required by the terms and conditions of the permit shall be completed at the expense of the permittee except as provided in subsection 2.14. All materials used in the construction of the access within the highway right-of-way or on permanent easements, become public property. Any materials removed from the highway right-of-way will be disposed of only as directed by the Department. All fencing, guard rail, traffic control devices and other equipment and materials removed in the course of access construction shall be given to the Department unless otherwise instructed by the permit or the Department inspector. 3. The permittee shall notify the individual or the office specified on the permit or Notice to Proceed at least two working days prior to any construction within state highway right-of-way. Construction of the access shall not proceed until both the access permit and the Notice to Proceed are issued. The access shall be completed in an expeditious and safe manner and shall be finished within 45 days from initiation of construction within the highway right-of-way. A construction time extension not to exceed 30 working days may be requested from the individual or office specified on the permit. 4. The issuing authority and the Department may inspect the access during construction and upon completion of the access to ensure that all terms and conditions of the permit are met. Inspectors are authorized to enforce the conditions of the permit during construction and to halt any activities within state right-of-way that do not comply with the provisions of the permit, that conflict with concurrent highway construction or maintenance work, that endanger highway property, natural or cultural res es protected by law, or the health and safety of workers or the public. 5. Prior to using the access, the permittee is required to complete the construction according to the terms and conditions of the permit. Failure by the permittee to abide by all permit terms and conditions shall be sufficient cause for the Department or issuing authority to initiate action to suspend or revoke the permit and close the access. If in the determination of the Department or issuing authority the failure to comply with or complete the construction requirements of the permit create a highway safety hazard, such shall be sufficient cause for the summary suspension of the permit. If the permittee wishes to use the access prior to completion, arrangements must be approved by the issuing authority and Department and included in the permit. The Department or issuing authority may order a halt to any unauthorized use of the access pursuant to statutory and regulatory powers. Reconstruction or improvement of the access may be required when the permittee has failed to meet required specifications of design or materials. If any construction element fails within two years due to improper construction or material specifications, the permittee shall be responsible for all repairs. Failure to make such repairs may result in suspension of the permit and closure of the access. 6. The permittee shall provide construction traffic control devices at all times during access construction, in conformance with the M.U.T.C.D. as required by section 42- 4-104, C.R.S., as amended. 7. A utility permit shall be obtained for any utility work within highway right-of-way. Where necessary to remove, relocate, or repair a traffic control device or public or private utilities for the construction of a permitted access, the relocation, removal or repair shall be accomplished by the permittee without cost to the Department or issuing authority, and at the direction of the Department or utility company. Any damage to the state highway or other public right-of-way beyond that which is allowed in the permit shall be repaired immediately. The permittee is responsible for the repair of any utility damaged in the course of access construction, reconstruction or repair. 8. in the event it becomes necessary to remove any right- of-way fence, the posts on either side of the access shall be securely braced with an approved end post before the fence is cut to prevent any slacking of the remaining fence. All posts and wire removed are Department property and shall be turned over to a representative of the Department. 9. The permittee shall ensure that a copy of the permit is available for review at the construction site at all times. The permit may require the contractor to notify the individual or office specified on the permit at any specified phases in construction to allow the field inspector to inspect various aspects of construction such as concrete forms, subbase, base course compaction, and materials specifications. Minor changes and additions may be ordered by the Department or local authority field inspector to meet unanticipated site conditions. 10. Each access shall be constructed in a manner that shall not cause water to enter onto the roadway or shoulder, and shall not interfere with the existing drainage system on the right-of-way or any ted municipal system and drainage plan. 11. By accepting the permit, permittee agrees to save, indemnify, and hold harmless to the extent allowed by law, the issuing authority, the Department, its officers, and employees from suits, actions, claims of any type or character brought because of injuries or damage sustained by any person resulting from the permittee's use of the access permit during the construction of the access. CHANGES IN ACCESS USE AND PERMIT VIOLATIONS 1. It is the responsibility of the property owner and permittee to ensure that the use of the access to the property is not in violation of the Code, permit terms and conditions or the Act. The terms and conditions of any permit are binding upon all assigns, successors -in -interest, heirs and occupants. If any significant changes are made or will be made in the use of the property which will affect access operation, traffic volume and or vehicle type, the permittee or property owner shall contact the local issuing authority or the Department to determine if a new access permit and modifications to the access are required. 2. When an access is constructed or used in violation of the Code, section 43-2-147(5)(c), C.R.S., of the Act applies. The Department or issuing authority may summarily suspend an access permit and immediately order closure of the access when its continued use presents an immediate threat to public health, welfare or safety. Summary suspension shall comply with article 4 of title 24, C.R.S. MAI NTENANCE 1. The permittee, his or her heirs, successors -in -interest, assigns, and occupants of the property serviced by the access shall be responsible for meeting the terms and conditions of the permit, the repair and maintenance of the access beyond the edge of the roadway including any cattle guard and gate, and the removal or clearance of snow or ice upon the access even though deposited on the access in the course of Department snow removal operations. Within unincorporated areas the Department will keep access culverts clean as part of maintenance of the highway drainage system. However, the permittee is responsible for the repair and replacement of any access -related culverts within the right-of-way. Within incorporated areas, drainage responsibilities for municipalities are determined by statute and local ordinance. The Department will maintain the roadway including auxiliary lanes and shoulders, except in those cases where the access installation has failed due to improper access construction and/or failure to follow permit requirements and specifications in which case the permittee shall be responsible for such repair. Any significant repairs such as culvert replacement, resurfacing, or changes in design or specifications, requires authorization from the Department. Form 101, Page 3 STATE HIGHWAY ACCESS PERMIT 308123 Located on Highway 006A near RP 96.880 Left Issued to Peregrine 08 Investments Inc. TERMS AND CONDITIONS September 16, 2008 1. This permitted access is only for the use and purpose stated in the Application and Permit. This Permit is issued in accordance with the State Highway Access Code (2 CCR 601-1), and is based in part upon the information submitted by the Permittee. Any subsequent relocation, reconstruction, or modifications to the access or changes in the traffic volume or traffic nature using the access shall be requested for by means of a new application. Any changes causing non-compliance with the Access Code may render this permit void, requiring a new permit. 2. This permit replaces any and all additional access permits that may be in existence. All other State Highway access to the properties owned by Donald Ziegler (Peregrine 08 Investments, LLC) shall be removed. 3. This access is for 4 single family residences. 4. If the properties redevelop in the commercial activities, then the access shall be off CR 277 (Miller Lane). 5. This access shall be constructed 20-30 feet wide with turning radii to accommodate the minimum turning radius of the largest vehicle or 35 foot, whichever is greater. 6. An 18 -inch minimum culvert with flared end treatments shall be required for this access. The culvert shall be kept free of blockage to maintain proper flow and drainage. 7. The access shall be constructed perpendicular to the travel lanes of the State Highway for a minimum distance of 40 feet from the edge of roadway. Side slopes shall be at a 4:1 slope on the roadway. The roadway shall slope away from the highway at a -2% grade for the first 20 feet of driveway. This design shall be in conformance with section 4 of the State Highway Access Code, 2CCR 601-1. 8. Materials, Placing and Compaction of Driveway: Unless the applicant has approval from the Access Manager which may state otherwise, the following will be required for driveway construction. As a minimum the materials for this driveway shall include; Sub -base: class 3 gravel placed in 6 inch lifts, Base: 6 inches of class 6 gravel in two 3 -inch lifts, Surface: 4 inches of pavement in two 2 inch lifts. Compaction of the subgrade, embankments and backfill shall comply with section 203.08 of the Colorado Highway Standard Specifications for Road and Bridge Construction. 9. The access shall be surfaced in accordance with Section 4.7 of the Access Code immediately upon completion of earthwork construction and prior to use. This access shall be hard surfaced in accordance with Section 4.7 of the Access Code a minimum distance of 20feet from the traveled way or to the CDOT Right -of -Way. Where the hard surface is to abut existing pavement, the existing pavement shall be saw cut and removed a minimum of one foot back from the existing edge for bituminous, or until an acceptable existing cross slope is achieved. Surfacing shall meet the Department's specifications with minimum surfacing to be equal to or greater than existing highway conditions. 10. A Notice to Proceed, CDOT Form 1265, is required before beginning construction on the access or any activity within the highway Right -of -Way. To receive the Notice to Proceed the applicant shall submit a complete packet to CDOT with the following items: (a) A cover letter requesting a Notice to Proceed, and the intended date to begin construction. STATE HIGHWAY ACCES ERMIT 308123 Located on Highway 006A near RP 96.880 Left Issued to Peregrine 08 Investments Inc. TERMS AND CONDITIONS (cont.) September 16, 2008 (b) Construction Plans Stamped (11"x 17" with a minimum scale of 1" = 50') by a Colorado Registered Professional Engineer in full compliance with the State Highway Access Code The plan shall provide: i) Plan view with driveway dimensions - turn radius, width, slope, gates, etc. ii) Typical road section - existing and proposed sub base, base, pavement, and shoulder dimensions. iii) Centerline profile of the access/Hwy connection showing depths, driveway slope, etc. (c) Certificate of Insurance Liability as per Section 2.3(11)(i) of the State Highway Access Code. (d) A certified Traffic Control Plan in accordance with Section 2.4(6) of the Access Code. The Traffic Control Plan shall provide accessibility features to accommodate all pedestrians including persons with disabilities for all pathways during construction. 11. No drainage from this site shall enter onto the State Highway travel lanes. The Permittee is required to maintain all drainage in excess of historical flows and time of concentration on site. All existing drainage structures shall be extended, modified or upgraded, as applicable, to accommodate all new construction and safety standards, in accordance with the Department's standard specifications. 12. Open cuts, which are at least 4 inches in depth, within 30 feet of the edge of the State Highway traveled way, will not be left open at night, on weekends, or on holidays, or shall be protected with a suitable barrier per State and Federal Standards. 13. Nothing in this permit shall prohibit the chief engineer from exercising the right granted in CRS 43-3-102 Including but not limited to restricting left hand turns by construction of physical medial separations. 14. The Permittee is responsible for obtaining any necessary additional Federal, State and/or City/County permits or clearances required for construction of the access. Approval of this access permit does not constitute verification of this action by the Permittee. Permittee is also responsible for obtaining all necessary utility permits in addition to this access permit. 15. All workers within the State Highway right of way shall comply with their employer's safety and health policies/procedures, and all applicable U.S. Occupational Safety and Health Administration (OSHA) regulations - including, but not limited to the applicable sections of 29 CFR Part 1910 - Occupational Safety and Health Standards and 29 CFR Part 1926 - Safety and Health Regulations for Construction. Personal protective equipment (e.g. head protection, footwear, high visibility apparel, safety glasses, hearing protection, respirators, gloves, etc.) shall be worn as appropriate for the work being performed, and as specified in regulation. 16. The Permittee shall provide accessibility features to accommodate all pedestrians including persons with disabilities for all pathways during and after construction. 17. The permittee is required to comply with the Americans with Disabilities Act Accessibility Guidelines (ADAAG) that have been adopted by the U.S. Architectural and Transportation Barriers Compliance Board (Access Board), and incorporated by the U.S. Attorney General as a federal standard. These guidelines are defining traversable slope requirements and prescribing the use of a defined pattern of truncated domes as detectable warnings at street STATE HIGHWAY ACCESS PERMIT 308123 Located on Highway 006A near RP 96.880 Left Issued to Peregrine 08 Investments Inc. TERMS AND CONDITIONS (cont.) September 16, 2008 crossings. The new Standards Plans and can be found on the Design and Construction Project Support web page at: http://www.dot.state.co.us/DesignSupport/, then click on Design Bulletins. 18. When it is necessary to remove any highway right-of-way fence, the posts on either side of the access entrance shall be securely braced with approved end posts and in conformance with the Department's M-607-1 standard, before the fence is cut, to prevent slacking of the remaining fence. All materials removed shall be returned to the Department. 19. It shall be the responsibility of the Permittee to maintain adequate sight distance for this driveway. Trimming of vegetation or trees to maintain adequate sight distance is the sole responsibility of the permittee. 20. Any damage to present highway facilities including traffic control devices shall be repaired immediately at no cost to the Department and prior to continuing other work. 21. During access construction no construction personnel vehicles will be permitted to park in the state highway right-of-way. 22. If the access has a gate across it, the gate shall be set back far enough from the highway so that the longest vehicle using it can clear the roadway when the gate is closed. 23. Any mud or other material tracked or otherwise deposited on the roadway shall be removed daily or as ordered by the Department inspector. If mud is an obvious condition during site construction, it is recommended that the contractor build a Stabilized Construction Entrance or Scrubber Pad at the intended construction access to aid in the removal of mud and debris from vehicle tires. The details of the Stabilized Construction Entrance is found in the M & S Standards Plan No. M-208-1. 24. A fully executed complete copy of this permit and the Notice to Proceed must be on the job site with the contractor at all times during the construction. Failure to comply with this or any other construction requirement may result in the immediate suspension of work by order of the Department inspector or the issuing authority. 25. No work will be allowed at night, Saturdays, Sundays and legal holidays without prior authorization from the Department. The Department may also restrict work within the State Highway right-of-way during adverse weather conditions. 26. The access shall be completed in an expeditious and safe manner and shall be completed within 45 days from initiation of construction within State Highway right-of-way or in accordance with written concurrence of the Access Manager. All construction shall be completed in a single season. 27. AH costs associated with any type of utility work will be at the sole responsibility and cost of the permittee and at no cost to CDOT. 28. Areas of roadway and/or right-of-way disturbed during this installation shall be restored to their original conditions to insure proper strength and stability, drainage and erosion control. Restoration shall meet the Department's standard specifications for topsoil, fertilization, mulching, and re -seeding. 29. Upon the completion of the access and prior to any use as allowed by this permit, the applicant shall notify the Access Manager by certified mail within 10 days to request a final inspection. • • STATE HIGHWAY ACCESSERMIT 308123 Located on Highway 006A near RP 96.880 Left Issued to Peregrine 08 Investments Inc. TERMS AND CONDITIONS (cont.) • September 16, 2008 This request shall include certification that all materials and construction have been completed in accordance with all applicable Department Standards and Specifications; and that the access is constructed in conformance with the State Highway Access Code, 2 CCR 601-1, including this permit. The engineer of record as indicated on the construction plans, shall be present for this inspection. The access serviced by this permit may not be opened to traffic until written approval has been given from the CDOT Access Manager. COLORADO DEPARTMENT OF TRANSPORTATION Environmental Clearances Information Summary PURPOSE - This summary is intended to inform entities external to CDOT that may be entering the state highway right-of-way to perform work related to their own facilities (such as Utility, Special Use or Access Permittees), about some of the more commonly encountered environmental permits/clearances that may apply to their activities. This listing is not all-inclusive - additional environmental or cultural resource permits/clearances may be required in certain instances. Appropriate local, state and federal agencies should be contacted for additional information if there is any uncertainty about what permits/clearances are required for a specific activity. IMPORTANT — Please Review The Following Information Carefully — Failure to Comply With Regulatory Requirements May Result In Suspension or Revocation of Your CDOT Permit, Or Enforcement Actions By Other Agencies CLEARANCE CONTACTS - As indicated in the permit/clearance descriptions listed below, the following individuals or agencies may be contacted for additional information: • Colorado Department of Public Health and Environment (CDPHE) — General Information — (303) 692-2035 Water Quality Control Division (WQCD) (303) 692-3500 Environmental Permitting Website http://www.cdphe.state.co.us/permits.asp. • CDOT Water Quality Program Manager; Rick Willard (303) 757-9343 • CDOT Asbestos Project Manager; Julia Horn (303) 512-5519 • Colorado Office of Archaeology and Historic Preservation: (303) 866-3395 • U.S. Army Corps of Engineers, District Regulatory Offices Omaha District (NE Colorado), Denver Office (303) 979-4120 htto://www.nwo.usace.armv.mil/html/od-tl/tri-lakes.html Sacramento Dist. (Western CO), Grand Junction Office (970) 243-1199 http://www.spk.usace.armv.mil/cespk-co/regulatory/ Albuquerque District (SE Colorado), Pueblo Reg. Office (719)-543-6915 http://www.spa.usace.armv.mil/reg/ • CDOT Utilities, Special Use and Access Permitting: (303) 757-9654 http://www.dot.state.co.us/Permits/ Ecological Resources — Disturbance of wildlife shall be avoided to the maximum extent practicable. Entry into areas of known or suspected threatened or endangered species habitat will require special authorization from the CDOT permitting office. If any threatened or endangered species are encountered during the progress of the permitted work, work in the subject area shall be halted and the CDOT Regional Permitting Office and Regional Planning and Environmental Manager shall be contacted immediately. Authorization must be provided by CDOT prior to the continuation of work. Information about threatened or endangered species may be obtained from the CDOT website http://www.dot.state.co.us/environmental/Wildlife/Guidelines.asp, or the Colorado Division of Wildlife website http://wildlife.state.co.us/WiidlifeSpecies/SpeciesOfConcern/. Additional guidance may be provided by the Regional Permitting Office in the Permit Special Provisions. Cultural Resources — The applicant must request a file search of the permit area through the Colorado Office of Archaeology and Historic Preservation (OAHP), Denver, to ascertain if historic or archaeological resources have previously been identified. Inventory of the permit area by a qualified cultural resources specialist may be necessary, per the recommendation of OAHP and/or CDOT. If archaeological or historical artifacts are encountered during the progress of the permitted work, work in the subject area shall be halted and the CDOT Regional Permitting Office and Regional Planning and Environmental Manager shall be contacted immediately. Authorization must be provided by CDOT prior to the continuation of work. Additional guidance may be provided by the Regional Permitting Office in the Permit Special Provisions. Contact Information Contact the OAHP at (303) 866-3395. General Prohibition — Discharges - All discharges are subject to the provisions of the Colorado Water Quality Control Act and the Colorado Discharge Permit Regulations. Prohibited discharges include substances such as wash water, paint, automotive fluids, solvents, oils or soaps. Contact Information: Contact the CDOT Water Quality Program Manager at (303) 757-9343, or the Colorado Department of Public Health and Environment, Water Quality Control Division (WQCD) at (303) 692-3500. General Authorization - Allowable Non-Stormwater Discharges - Unless otherwise identified by CDOT or the WQCD as significant sources of pollutants to the waters of the State, the following discharges to stormwater systems are allowed without a Colorado Discharge Permit System permit: landscape irrigation, diverted stream flows, uncontaminated ground water infiltration to separate storm sewers, discharges from potable water sources, foundation drains, air conditioning condensation, irrigation water, springs, footing drains; water line flushing, flows from riparian habitats and wetlands, and flow from fire fighting activities. Contact Information: The CDOT Water Quality Program Manager or the CDPHE Water Quality Control Division (telephone #'s listed above). Hazardous Materials, Solid Waste - The Solid Wastes Disposal Sites and Facilities Act C.R.S. 30-20-100, et al, and Regulations Pertaining to Solid Waste Disposal Sites and Facilities (6 CCR 1007-2), prohibit solid waste disposal without an approved Certificate of Designation (a landfill permit). The Colorado Hazardous Waste Act C.R.S. 25-15-301 et al, and the Colorado Hazardous Waste Regulations (6 CCR 1007-3) prohibit the transfer, storage or disposal (TSD) of hazardous waste except at permitted TSD sites. There are no permitted landfills or TSD sites within the State Highway Right of Way. Therefore, all solid or hazardous wastes that might be generated by the activities of entities entering the State Highway Right of Way must be removed from the ROW and disposed of at a permitted facility or designated collection point (e.g., for solid waste, a utility or construction company's own dumpster). If pre-existing solid waste or hazardous materials contamination (including oil or gasoline contaminated soil, asbestos, chemicals, mine tailings, etc.) is encountered during the performance of work, the permittee shall halt work in the affected area and immediately contact the CDOT Regional Permitting Office for direction as to how to proceed. Contact Info: Contact the CDOT/CDPHE Liaison at (303)757-9787. AIM- /11111, Environmental Clearances Information Summary Page 1 of 3 Colorado Depart of Transportation November '07 Asbestos Containing Materials, Asbestos Contaminated Soil — All work on asbestos containing materials (ACM) must comply with the applicable requirements of the CDPHE Air Pollution Control Division's (APCD) Regulation 8. Disposal of ACM, and work done in asbestos -contaminated soil, must comply with the CDHPE Hazardous Materials and Waste Management Division's (HMWMD) Solid Waste Regulations. The application for any CDOT permit must specifically identify any ACM involved in the work for which authorization is being requested. Additional guidance or requirements may be specified in the permit special provisions. Contact Info: CDPHE APCD and HMWMD Regulations can be accessed via the CDPHE Environmental Permitting Website listed above. Additional information concerning clearance on CDOT projects is available from Julia Horn, CDOT Asbestos Project Manager (303) 512-5519, or Theresa Santangelo-Dreiling, Property Management Supervisor (303) 512-5524. Construction Stormwater Permit; Stormwater Discharge From Industrial Facilities - Discharges of stormwater runoff from construction sites disturbing one acre or more - or certain types of industrial facilities - requires a CDPS Stormwater Permit. Contact Information: For Utility/Special Use activities being performed in conjunction and coordination with a CDOT highway construction contract, please contact the CDOT Water Quality Program Manager at (303) 757-9343. Otherwise, contact the CDPHE Water Quality Control Division at (303) 692-3500. Website: http://www.cdphe.state.co.us/wq/PermitsUnit/wocdomt.html Construction Dewatering (Discharge or Infiltration) — Discharges of water encountered during excavation or work in wet areas may require a Construction Dewatering Discharge Permit. Contact Information: For Construction Dewatering Discharge Permits, contact the CDPHE WQCD at (303) 692-3500. Website:http://www.cdphe.state.co.us/wg/PermitsUnit/wgcdpmt.html Minimal Industrial Discharge Permit — Discharges of small quantities of wastewater or wastewater requiring minimal treatment, such as that resulting from hydrostatic testing or certain wash waters, may require a Minimal Industrial Discharge Permit ("MINDI"). Contact Info: Contact the CDPHE WQCD at (303) 692-3500. Website: http://www.cdphe.state.co.us/wq/PermitsUnit/wgcdpmt.html Municipal Separate Storm Sewer System (MS4) Discharge Permit — Discharges from the storm sewer systems of larger municipalities, and from the CDOT highway drainage system that lies within those municipalities, are subject to MS4 Permits issued by the CDPHE WQCD. For facilities that lie within the boundaries of a municipality that is subject to a MS4 permit, the owner of such facility should contact the municipality regarding stormwater related clearances that may have been established under that municipality's MS4 permit. All discharges to the CDOT highway drainage system must comply with the applicable provisions of the Colorado Water Quality Control Act and the Colorado Discharge Permit Regulations, and are subject to inspection by the CDOT and the CDHPE. Contact Information: Contact the CDPHE Water Quality Control Division at (303) 692-3500 for a listing of municipalities required to obtain MS -4 Permits, or go to http://www.cdphe.state.co.us/wo/PermitsUnit/wgcdpmt.html#MunicipalFarmsGuidance. Discharge of Dredged or Fill Material — 404 Permits Administered By the U.S. Army Corps of Engineers, and Section 401 Water Quality Certifications Issued by the CDPHE WQCD - Corps of Engineers 404 Permits are required for the discharge of dredged or fill materials into waters of the United States, including wetlands. There are various types of 404 Permits, including Nationwide Permits, which are issued for activities with relatively minor impacts. For example, there is a Nationwide Permit for Utility Line Activities (NWP #12). However, depending upon the specific circumstances, it is possible that either a "General" or "Individual" 404 permit would be required. If an Individual 404 Permit is required, Section 401 water quality certification from the CDPHE WQCD is also required. Contact Information: Contact the appropriate Corps District Regulatory Office for information about what type of 404 permit may be required (information provided at top of ECIS). Contact the CDPHE Water Quality Control Division at (303) 692-3500. Erosion and Sediment Control Practices - For activities requiring a Construction Stormwater Permit, erosion control requirements will be specified through that permit. In those situations where a stormwater permit is not required, all reasonable measures should be taken in order to minimize erosion and sedimentation. In either case, the CDOT Stormwater Quality and Erosion Control Guide (2002) should be used to design erosion controls. Contact Information: The CDOT Stormwater Quality and Erosion Control Guide may be obtained from the Bid Plans Office at 303 757-9313 or from: htt•://www.dot.state.co.us/environmental/envWaterQual/w•ms4.as. Disposal of Drilling Fluids - Drilling fluids used in operations such as Horizontal Directional Drilling may be classified as "discharges" or "solid wastes", and in general, should be pumped or vacuumed from the construction area, removed from the State Highway Right of Way, and disposed of at permitted facilities that specifically accept such wastes. Disposal of drilling fluids into storm drains, storm sewers, roadside ditches or any other type of man-made or natural waterway is prohibited by Water Quality Control and/or Solid Waste regulations. Small quantities of drilling fluid solids (less than 1 cubic yard of solids) may be left on-site after either being separated from fluids or after infiltration of the water, provided: 1) the drilling fluid consists of only water and bentonite clay, or, if required for proper drilling properties, small quantities of polymer additives that are approved for use in drinking water well drilling; 2) the solids are fully contained in a pit, and are not likely to pose a nuisance to future work in the area, 3) the solids are covered and the area restored as required by CDOT permit requirements (Utility, Special Use, or Access Permits, etc.). Contact Information: Contact the CDOT / CDPHE Liaison or CDOT Water Quality Program Manager. Concrete Washout - Waste generated from concrete activities shall NOT be allowed to flow into the drainage ways, inlets, receiving waters, or in the CDOT ROW. Concrete waste shall be placed in a temporary concrete washout facility. Concrete washout shall only be performed as specified by the CDOT Environmental Program and shall be in accordance to CDOT specifications and guidelines. Contact Information: Contact the CDOT Water Quality Program Manager at (303) 757-9343. Spill Reporting - Spills shall be contained and cleaned up as soon as possible. Spills shall NOT be washed down into the storm drain or buried. All spills shall be reported to the CDOT Illicit Discharge Hotline at (303) 512-4446 (4H20), as well as the Regional Permitting Office and Regional Maintenance Supervisor. Spills on highways, into waterways, or that may otherwise present an Colorado Department of Transportation Novemoer ur Environmental Clearances Information Summary Paae 2 of 3 immediate danger to the public shall be reported by calling 911, and shall also be reported to the CDPHE at 1-(877)-518-5608. Transportation of Hazardous Materials - No person may offer or accept a hazardous material for transportation in commerce unless that person is registered in conformance with the United States Department of Transportation regulations at 49 CFR, Part 171. The hazardous material must be property classed, described, packaged, marked, labeled, and in condition for shipment as required or authorized by applicable requirements, or an exemption, approval or registration has been issued. Vehicles requiring a placard, must obtain authorization and a State HAZMAT Permit from the Colorado Public Utilities Commission. Contact Information: For authorization and more info call the Federal Motor Safety Carrier Administration, US DOT for inter- and intra -state HAZMAT Registration (303) 969-6748. Colorado Public Utilities Commission: (303) 894-2868. Paleontology - The applicant must request a fossil locality file search through the University of Colorado Museum, Boulder, and the Denver Museum of Nature and Science to ascertain if paleontological resources have been previously identified. Inventory of the permit area by a qualified paleontologist may be necessary, per the recommendation of CDOT. If fossils are encountered during the permitted work, all work in the subject area shall be halted and the CDOT Regional Permitting Office and Regional Planning and Environmental Manager shall be contacted immediately. Authorization must be provided by CDOT prior to the continuation of work. Additional guidance may be provided by the Regional Permitting Office in the Permit Special Provisions. Contact Information: Contact the CDOT Paleontologist at (303) 757-9632. Working on or in any stream or its bank - In order to protect and preserve the state's fish and wildlife resources from actions that may obstruct, diminish, destroy, change, modify, or vary a natural existing stream or its banks or tributaries, it may be necessary to obtain a Senate Bill 40 certification from the Colorado Department of Natural Resources. A stream is defined as 1) represented by a solid blue line on USGS 7.5' quadrangle maps; and/or 2) intermittent streams providing live water beneficial to fish and wildlife; and/or 3) segments of streams supporting 25% or more cover within 100 yards upstream or downstream of the project; and/or 4) segments of streams having wetlands present within 200 yards upstream or downstream of the project. The Colorado Division of Wildlife (CDOW) application, as per guidelines agreed upon by CDOT and CDOW, can be accessed at www.dot.state. co. us/environmental/wildlife/permitapplication.asp. About This Form - Questions or comments about this Information Summary may be directed to Dahir Egal, CDOT Safety & Traffic Engineering, Utilities Unit, at (303) 757-9344, dahir.egal(adot.state.co.us Pnvirnnmantal (aaaranrac Infnrmatinn Si imman, • Pana r,f ('nInrnrin flanartr,f Tra ncnnrtnfinn Nnvam har '07 • ZIEGLER SUBDIVISION EXEMPTION IMPROVEMENTS AGREEMENT THIS IMPROVEMENTS AGREEMENT ("Agreement") is made and entered into this day of , 2009, by and between PEREGRINE 08 INVESTMENTS, LLC, a Colorado limited liability company, whose address is 0092 County Road 227, Rifle, CO 81650 ("Owner") and the BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY, COLORADO, acting for the County of Garfield, State of Colorado, as a body politic and corporate, directly or through its authorized representatives and agents ("BOCC"). WHEREAS, Owner is the owner and developer that parcel of real property located in Garfield County, Colorado and known as the Ziegler Subdivision Exemption ("Subdivision Exemption"); WHEREAS, on June 16 17, 2008, the BOCC, by Resolution No. 2008-_ ("Resolution of Approval"), divided by exemption those four single-family lots more particularly described within Ziegler Subdivision Exemption plat filed in the records of the Clerk and Recorder for Garfield County, Colorado on , 2009 as Reception No. ("Exemption Plat"); WHEREAS, as a condition precedent to the approval and execution of the Exemption Plat as submitted to the BOCC for approval, Owner wishes to enter into this Agreement with the BOCC for the purpose of securing completion of construction of the roadway improvements set forth therein; and WHEREAS, Owner has agreed to execute and deliver to the BOCC collateral or other security in a form satisfactory to the BOCC to secure and guarantee Owner's performance under this Agreement and has agreed to certain restrictions and conditions regarding the sale of properties and issuance of building permits and certificates of occupancy within the Subdivision, all as more fully set forth below. NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. EXEMPTION PLAT APPROVAL. The BOCC hereby accepts and approves the Exemption Plat, on the date set forth above, subject to the terms and conditions of this Agreement, the Resolution of Approval hereinabove stated and any other governmental or quasi - governmental regulations applicable to the Subdivision Exemption. 2. OWNER'S PERFORMANCE. Owner shall cause to be constructed and installed those roadway improvements more particularly described within Exhibit A hereto ("Improvements"), at its own expense, including the payment of all fees required by the County and/or other governmental and quasi -governmental entities with regulatory jurisdiction over the Subdivision Exemption. The Improvements shall be completed on or before the end of the first Ziegler Exemption Improvements Agreement Page 1 of 9 C. (Documents and SettingsWanie11e1Local SettingslTemporary Internet FilesIOLK5621ZieglerSIA.doc full year following execution of this Agreement, i.e., 20_ (completion date), in compliance with the following: a. The plans for the Improvements attached hereto as Exhibit A as approved by the Colorado Department of Transportation under Owner's State Highway Access Permit No. 308123; the estimated of cost of completion of the Improvements, certified by and bearing the stamp of Owner's professional engineer licensed in the State of Colorado ("Owner's Engineer"), attached hereto as Exhibit B; and all other documentation required to be submitted along with the Final Plat under pertinent sections of the Garfield County subdivision and zoning regulations ("Final Plat Documents"); b. All requirements of the Resolution of Approval; c. All laws, regulations, orders, resolutions and requirements of the State of Colorado, Garfield County, and all special districts and any other governmental or quasi - governmental authority(ies) with jurisdiction; and d. The provisions of this Agreement. The BOCC agrees that if all Improvements are installed in accordance with subparagraphs 2 (a) through 2 (d), above; the record drawings to be submitted upon completion of the Improvements as detailed in paragraph 3 (c), below; and all other requirements of this Agreement, then the Owner shall be deemed to have satisfied all terms and conditions of the Resolution of Approval with respect to the installation thereof. 3. SECURITY FOR IMPROVEMENTS. a. Letter of Credit. As security for Owner's obligation to complete the Improvements, Owner shall deliver to the BOCC, on or before the date of recording of the Final Plat of the Subdivision with the Garfield County Clerk and Recorder, one or more Letters of Credit in the form agreed to be acceptable to the BOCC, attached hereto as Exhibit C, or such other form of security as may be deemed acceptable to the BOCC as provided in paragraph 3 (g), below. The LOC(s) shall be in the amount of $31,180.00, representing the full estimated cost of completing the Improvements, including a sufficient contingency to cover cost changes, unforeseen costs and other variables (not less than 10% of the estimated costs and as approved by the BOCC). b. LOC Requirements. The LOC(s) required by this Agreement shall be issued by a state or national banking institution acceptable to the BOCC. If the institution issuing the LOC(s) is not licensed in the State of Colorado and transacting business within the State of Colorado, the LOC(s) shall be "confirmed" within the meaning of the Uniform Commercial Code, Letters of Credit, §4-5-101 et seq., C.R.S., as amended, by a bank that is licensed to do business in the State of Colorado, doing business in Colorado, and acceptable to the BOCC. The LOC(s) shall be valid for a minimum of six (6) months beyond the completion date for the Improvements set forth herein. If the time for completion of Improvements is extended by a Ziegler Exemption Improvements Agreement Page 2 of 9 C: (Documents and Settings\DaniellelLocalegslTemporary Internet Files\OLK5621ZteglerSIA.doc • • • written amendment to this Agreement, the time period for the validity of the LOC(s) shall be similarly extended by the Owner. For each six (6) month extension, the face amount of the LOC(s), at the sole option of the BOCC, shall be subject to recertification of cost of completion by Owner's Engineer and review by the BOCC for a possible increase in the face amount of the LOC, in order to assure sufficiency of the amount of security to allow possible completion of the Improvements by the BOCC under terms of this Agreement. Additionally, should the LOC(s) become void or unenforceable for any reason, including bankruptcy of the Owner or the financial institution issuing or confirming the LOC, prior to the BOCC's approval of Owner's Engineer's certification of completion of the Improvements, this Agreement shall become void and of no force and effect and the Exemption Plat shall be vacated pursuant to the terms of this Agreement. c. Partial Releases of Security. Owner may request partial release(s) of the LOC(s) by means of submission to the Building and Planning Department of a "Written Request for Partial Release of LOC," in the form attached hereto as Exhibit "D," accompanied by the Owner's Engineer's Certificate of Partial Completion of Improvements, stamped by Owner's Engineer. The Owner's Engineer's seal shall certify that the Improvements have been constructed in accordance with the requirements of this Agreement, including all provisions of the Resolution of Approval. The BOCC shall authorize successive releases of portions of the face amount of the LOC(s) as portions of the Improvements are certified as complete to the BOCC by the Owner's Engineer and said certification is approved by the BOCC. d. BOCC's Investigation. Notwithstanding the foregoing, upon submission of the Owner's Written Request for Partial Release of LOC, along with Owner's Engineer's Certificate of Partial Completion of the Improvements, the BOCC may review the certification and may inspect and review the Improvements certified as complete to determine whether or not said Improvements have been constructed in compliance with relevant specifications, as follows: i. If no letter of potential deficiency is furnished to Owner by the BOCC within fifteen (15) days of submission of Owner's Written Request for Partial Release of LOC accompanied by Owner's Engineer's Certificate of Partial Completion of Improvements, all Improvements certified as complete shall be deemed complete by the BOCC, and the BOCC shall authorize release of the appropriate amount of security. ii. If the BOCC chooses to inspect and determines that all or a portion of the Improvements certified as complete are not in compliance with the relevant specifications, the BOCC shall furnish a letter of potential deficiency to the Owner, within fifteen (15) days of submission of Owner's Written Request for Partial Release of LOC accompanied by Owner's Engineer's Certificate of Completion of the Improvements. iii. If a letter of potential deficiency is issued identifying a portion of the certified Improvements as potentially deficient, then all Improvements not identified as potentially deficient shall be deemed complete, and the BOCC shall authorize release of the amount of security related to the certified Improvements that are not identified as potentially deficient. Ziegler Exemption Improvements Agreement Page 3 of 9 C: Documents and Settings1DaniellelLocal SettingslTemporary Internet Ftles1OLK5621ZteglerS1A.doc iv. With respect to Improvements identified as potentially deficient in a letter of potential deficiency, the BOCC shall have thirty (30) days from the date of the letter to complete the initial investigation, begun under subparagraph 3.d.ii. above, and provide written confirmation of the deficiency(ies) to the Owner. v. If the BOCC finds that the Improvements are complete, in compliance with the relevant specifications, then the appropriate amount of security shall be authorized for release within ten (10) days after completion of such investigation. e. BOCC Completion of Improvements. If the BOCC finds, within the thirty (30) day period of time, defined in subparagraph 3 (e)(iv) above, that the Improvements are not complete, or if the BOCC determines that the Owner will not or cannot construct any or all of the Improvements, whether or not Owner has submitted a written request for release of LOC, the BOCC may withdraw and employ from the LOC(s) such funds as may be necessary to construct the Improvements in accordance with the specifications, up to the face amount, or remaining face amount, of the LOC(s). In such event, the BOCC shall make a written finding regarding Owner's failure to comply with this Agreement prior to requesting payment from the LOC(s). In lieu of or in addition to drawing on the LOC(s), the BOCC may bring an action for injunctive relief or damages for the Owner's failure to adhere to the provisions of this Agreement. The BOCC shall provide the Owner a reasonable time to cure any identified deficiency(ies) prior to requesting payment from the LOC(s) or filing a civil action. £ Final Release of Security. Upon completion of all the Improvements, Owner shall submit to the BOCC, through. the Building and Planning Department: 1) record drawings bearing the stamp of Owner's Engineer certifying that all Improvements have been constructed in accordance with the requirements of this Agreement, including all provisions of the Resolution of Approval, in hard copy and a digital format acceptable to the BOCC; 2) copies of instruments conveying real property and other interests which Owner is obligated to convey to the Ziegler Subdivision Homeowners' Association; and 3) a Written Request for Final Release of LOC, in the form attached to and incorporated herein as Exhibit "E," along with Owner's Engineer's Certificate of Final Completion of Improvements. i. The BOCC shall authorize a final release of the LOC(s) after the Imovements are certified as final to the BOCC by the Owner's Engineer and said final certification is approved by the BOCC. If the BOCC finds that the Improvements are complete, in accordance with the relevant specifications, the BOCC shall authorize release of the final amount of security within ten (10) days following submission of the Owner's Written Request for Final Release of LOC accompanied by the other documents required by this paragraph 3(g). ii. Notwithstanding the foregoing, upon Owner's Written Request for Final Release of LOC accompanied by Owner's Engineer's Certificate of Final Completion of the Improvements, the BOCC may inspect and review the Improvements certified as complete. If the BOCC does so review and inspect, the process contained in paragraph 3(e) above shall be followed. Ziegler Exemption Improvements Agreement Page 4 of 9 C. \Documents and Settings DaniellelLocal eslTemporary Internet FilesIOLK5621ZieglerSIA.doc • iii. If the BOCC finds that the Improvements are complete, in accordance with the relevant specifications, the BOCC shall authorize release of the final amount of security within ten (10) days after completion of such investigation. If necessary, the BOCC may complete any remaining Improvements in accordance with process outlined in Paragraph 3(f) above. g. Substitution of Letter of Credit. The BOCC, at its sole opinion, may permit the Owner to substitute collateral other than a LOC, in a form acceptable to the BOCC, for the purpose of securing the completion of the Improvements. h. Recording of Final Plat. The Exempton Plat shall not be recorded until the security described in this paragraph 3 has been received and approved by the BOCC. 4. ROADS. All roads within the Subdivision shall be dedicated to the Ziegler Subdivision Homeowners Association to be maintained for benefit of the members thereof. The Ziegler Subdivision Homeowners Association shall be solely responsible for the maintenance, repair and upkeep of said rights-of-way, including the traveled surface of the roadways and portions of the rights-of-way outside of the traveled surface. The BOCC shall not be obligated to maintain any road rights-of-way within the Subdivision 5. INDEMNITY. The Owner shall indemnify and hold the BOCC harmless and defend the BOCC from all claims which may arise as a result of the Owner's installation of the Improvements and any other agreement or obligation of Owner related to development of the Subdivision Exemption required pursuant to this Agreement. The Owner, however, does not indemnify the BOCC for claims made asserting that the standards imposed by the BOCC are improper or the cause of the injury asserted, or from claims, which may arise from the negligent acts or omissions of the BOCC or its employees. The BOCC shall be required to notify the Owner of the BOCC's receipt of a notice of claim or a notice of intent to sue, and the BOCC shall afford the Owner the option of defending any such claim or action. Failure to notify and provide such written option to the Owner shall extinguish the BOCC's rights under this paragraph. Nothing in this paragraph shall be construed to constitute a waiver of the Sovereign Immunity granted to the BOCC by Colorado statutes and case law. FEES IN LIEU OF DEDICATION OF SCHOOL LAND. Pursuant to the Resolution of Approval, a school impact fee, as against Lots 2, 3 and 4 in the amount of $200.00 per Lot for a total fee in lieu of dedication shall be paid by Owner to the Garfield County Treasurer for remittance to the RE -2 School District. This fee in lieu of dedication shall be paid by Owner at the time this Agreement and the Exemption Plat are recorded in the records of the Clerk and Recorder for Garfield County, Colorado. The Owner agrees that it is obligated to pay the above -stated fee, accepts such obligation, and waives any claim that Owner is not required to pay the cash in lieu of land dedication fee. The Owner agrees that Owner will not claim, nor is Owner entitled to claim, subsequent to recording Ziegler Exemption Improvements Agreement C. (Documents and Settings\DaniellelLocal SettingslTemporary Internet Files10LK5621ZieglerS1A.doc Page 5 of 9 of the Final Plat of the Subdivision, a reimbursement of the fee in lieu of land dedication to the RE -1 School District. 6. SALE OF LOTS. No lots, tracts, or parcels within the Subdivision Exemption may be separately conveyed prior to recording of the Exemption Plat in the records of the Garfield County Clerk and Recorder. 7. BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY. As one remedy for breach of this Agreement, the BOCC may withhold issuance of building permits for any residence or other habitable structure requiring a permit to be constructed within the Subdivision Exemption. Further, no building permit shall be issued unless the Owner demonstrates to the satisfaction of the Burning Mountain Fire Protection District ("District") that there is adequate water available to the construction site for the District's purposes. Further, the parties agree that no certificates of occupancy shall issue for any buildings or structures, including residences, within the Subdivision Exemption until all Improvements have been completed and are operational as required by this Agreement. 8. ENFORCEMENT. In addition to any rights which may be provided by Colorado statute, the withholding of building permits and certificates of occupancy provided for in paragraph 12 above, and the provisions for release of security, detailed in paragraph 3 above, it is mutually agreed by the BOCC and the Owner that the BOCC, without making an election of remedies, or any purchaser of any lot within the Subdivision Exempton shall have the authority to bring an action in the Garfield County District Court to compel enforcement of this Agreement. Nothing in this Agreement, however, shall be interpreted to require the BOCC to bring an action for enforcement or to withhold permits or certificates or to withdraw and use security. Nor shall this paragraph or any other provision of this Agreement be interpreted to permit the purchaser of a lot to file an action against the BOCC. 9. CONSENT TO VACATE PLAT. In the event the Owner fails to comply with the terms of this Agreement, the BOCC shall have the ability to vacate the Exempton Plat as it pertains to any lots for which building permits have not been issued. As to lots for which building permits have been issued, the plat shall not be vacated and shall remain valid. In such event, the Owner shall provide the BOCC a survey, legal description and a plat showing the location of any portion of the Exemptoin Plat so vacated and shall record the plat in the Office of the Garfield County Clerk and Recorder. If such plat is not recorded by the Owner, the BOCC may vacate the plat, or portions thereof, by Resolution. 10. NOTICE BY RECORDATION. This Agreement shall be recorded in the Office of the Garfield County Clerk and Recorder and shall be a covenant running with title to all lots, tracts, and parcels within the Subdivision Exemptoin. Such recording shall constitute notice to prospective purchasers or other interested parties as to the terms and provisions thereof. 11. SUCCESSORS AND ASSIGNS. The obligations and rights contained herein shall be binding upon and inure to the benefit of the successors and assigns of the Owner and the BOCC. Ziegler Exemption Improvements Agreement Page 6 of 9 C. (Documents and Settings1DaniellelLocalOs\Temporary Internet Files\OLK5621ZieglerSIA.doc • • • 12. IDENTIFICATION OF CONTRACT ADMINISTRATORS AND NOTICE PROVISIONS. All notices required or permitted by this Agreement shall be in writing and shall be deemed effective when received by the recipient party via personal or messenger service delivery, facsimile transmission or United States certified mail (postage prepaid, return receipt requested), in all cases addressed to the person for whom it is intended at the address or facsimile number set forth below: Owner: Peregrine 08 Investments, LLC Attn: Donald Ziegler 0092 County Road 227, Rifle, CO 81650 w/copy to representative: Timothy Allen Thulson Balcomb & Green P.C. 818 Colorado Avenue Glenwood Springs, CO 81601 BOCC: Board of County Commissioners of Garfield County, Colorado c/o Fred Jarman, Planning Director 108 Eighth Street, Room 401 Glenwood Springs, CO 81601 Phone: (970) 945-8212 Fax: (970) 384-3470 Owner and the BOCC hereby warrant and confirm that the representatives of the Owner and the BOCC, identified above, are the authorized representatives of the parties for purposes of contact administration and notice under this Agreement. 13. AMENDMENT. This Agreement may be modified from time to time, but only in writing signed by the parties hereto, as their interests then appear. The parties, however, may change the identification of notice recipients and contract administrators and the contact information, provided in paragraph 12 above, in accordance with the notice provisions and without formal amendment of this Agreement. 14. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which, when taken together, shall be deemed one and the same instrument. Ziegler Exemption Improvements Agreement Page 7 of 9 C. (Documents and SettingsWDaniellelLocal SettingslTemporary Internet FileslOLK5621ZieglerSIA.doc 15. VENUE AND JURISDICTION. Venue and jurisdiction for any cause arising out of or related to this Agreement shall lie with the District Court of Garfield County, Colorado, and this Agreement shall be construed according to the laws of the State of Colorado. IN WITNESS WHEREOF, the parties have signed this Agreement to be effective upon the date of Final Plat Approval for the Subdivision. Ziegler Exemption Improvements Agreement Page 8 of 9 C: \Documents and Settings\Danielle1Local Se*Temporary Internet FilesIOLK5621ZieglerSIA.doc • • BOARD OF COUNTY COMMISSIONERS GARFIELD COUNTY, COLORADO ATTEST: By: Clerk to the Board Chairman Date: PEREGRINE 08 INVESTMENTS, LLC By: Donald Ziegler, Manager STATE OF COLORADO ) ) ss COUNTY OF GARFIELD ) Subscribed and sworn to before me this day of , 200_, by Donald Ziegler, Manager of Peregrine 08 Investments, LLC, owner of the real property inclusive of the Ziegler Subdivision Exemption. WITNESS my hand and official seal. My commission expires: Notary Public Ziegler Exemption Improvements Agreement Page 9 of 9 C: Wocuments and SettingswaniellelLocal SettingslTemporary Internet Filesl0LK5621ZieglerSJA.doc