MEMO. Upon reviewing the information submitted by the applicant for the proposed wells. Our comments follow:

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1 ARCHULETA COUNTY ROAD AND BRIDGE DEPARTMENT MEMO Date: June 13, 2018 To: John Shepard From: Yari Davis Cc: Bob Perry RE: BP Cox 3 Proposed Pad Upon reviewing the information submitted by the applicant for the proposed wells. Our comments follow: Prior to construction an Access Permit should be obtained. The construction of the well may affect CR 988, the road is in good condition. After the construction of the well, the applicant shall call the County s right-of way-technician, Tim Hatch at (970) for a final inspection. If the road is damaged due to the construction of the well, repairs to the road will be required. Tim will inform the applicant if the road should be repaired in a specific period of time. If the road is not repaired in that period the time, the County will use the applicant anti-damage bond for the mitigation of the damage to the road and/or right-of-way. The applicant shall take whatever steps that are necessary to minimize dust pollution generated during the construction and subsequent operation of the wells, along CR 988 and the private wells access road, and in any disturbed areas of ground, in and around the well pad site FAX: PO BOX S. HIGHWAY 84 PAGOSA SPRINGS, CO MEMO K:\PLANNING\SHARED - PLANNING\REVIEWS1\OIL & GAS\ BP COX 3 SE\MEMO DOC

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4 May 1, 2018 County Commisioners / To whom it may concern Department Services- Planning Dept. Archuleta County Admin. Offices 398 Lewis St. Pagosa Springs, CO RE: BP Cox 3 Well pad We are expressing our concerns regarding the installation of proposed BP Cox 3 Well pad on the east side of County road 988 south of Colorado 151 in Allison. Although this is a rural community we still consider it our residential community and would hope that this proposed site would not be approved for an exception. We ask that you please look at where the other well pads in the area are located and note that they are all in locations well away from roads and homes in an effort to be as unobtrusive as possible. This proposed site would certainly not meet these precedents. We ask you to consider if this were your residential community if you or anyone in the BP family would like this to be made part of your daily living. We have well pads to the east and south of our properties that are noisy and dusty with constant comings and goings of service personnel. In addition, our water well is directly south of the proposed site, and as in previous drillings, we are VERY concerned that the quantity and quality of our water will be affected. This would detrimentally affect our property value. As this hearing is regarding obtaining an exception to allow for this well pad to proceed, we hope that the reasons above will encourage you to deny the exception for this proposed site. Thank you for your consideration, George and Elaine Nobriga 1841 CR 977 Ignacio ( Allison), CO

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9 Archuleta County Department of County Development Building & Planning Department 46 Eaton Dr. Suite 1 P. O. Box 1507 Pagosa Springs, Colorado Fax To: Energen Resources Corp. (Finney Land Company-Agent) From: Cindy Schultz, Associate Planner Re.: PERMIT for Minor Facility Gas Well Permit Application GW Date: January 18, 2008 Project: Peterson 32-6 #14-4 Gas Well (Energen Resources Corporation) Location: T32N-R6W, Section 14 SE1/4, Archuleta County, Colorado. Owner: Sub-surface Mineral Rights: Energen Resources Inc. Surface Rights: Keith and Barbara Swain Applicant: Finney Land Company (for Energen Resources Corp.) Date of Application Submittal: September 25, 2007 (Application Deemed Complete on December 3, 2007) OPERATION DESCRIPTION: The proposal calls for a minor gas well facility ( well ) to be drilled on the property of Keith W. and Barbara J. Swain. The proposed well will be accessed off of County Road 977 to an existing access road. The proposed construction is an approximately.67 acre well pad expansion. Total disturbed area after expansion will be approximately 1.43 acres (including construction area). At the well location, a pad site will be expanded to consist of (maximum) the wellhead, meter, separator, dehydrator, steel water tanks (3-400 bbls.), 2 80-bbl fiberglass tanks, flowline, cathodic protection, telemetry, and chemical injection system. Possible additional equipment may include: 15 bhp pumping unit or artificial lift, 30 bhp compressor, and 5 bhp transfer pump. The well has been processed for permitting as a minor facility, based on the applicant s assertion and details regarding the involved equipment will not exceed a cumulative break-horsepower rating of 50 break horsepower (bhp). Any water required for drilling will come from Ignacio, CO. Water containment pits will be fenced and all containment and disposal will comply with local, state and federal - 1 -

10 regulations. As the site of disturbance will be greater than one acre, a stormwater permit shall be obtained from the Colorado Department of Public Health and Environment (CDPHE) and best management practices must be adhered to. The applicant anticipates minimal dust produced from operations, however, dust control is regulated under the Air Quality Division of CDPHE should there be any concern. An appropriate Weed Control Plan must be adhered to in conjunction with the Archuleta County Weed and Pest program. PUBLIC COMMENT The Archuleta County Land Use Regulations do not provide for public comment on minor facility permit applications. Owners of the surface rights were advised of this application however, no comments were provided to the County. CONCLUSION, CONDITIONS, AND RECOMMENDATIONS It is the opinion of Planning Staff the application for a Gas Well Development Permit as submitted by the applicant, Energen Resources Corporation; by Finney Land Company, meets all legal requirements for a project of this kind. This Oil and Gas Minor Facility permit (GW ) is hereby APPROVED, subject to the following conditions: General Requirements: 1) Energen Resources Corp. shall provide a $5,000 performance bond per well or a $50,000 county-wide blanket bond for the period of 2 years to ensure compliance with mitigation and other performance requirements of this well permit in accordance with the applicable portions of Section 9 of the Archuleta County Land Use Regulations. 2) The applicant, Energen Resources Corp., shall comply with all Colorado Oil and Gas Conservation Commission (COGCC) rules, conditions, regulations, and requirements. 3) Failure to comply fully with these regulations will generate a non-compliance determination which may result in a cessation of operations at the well site. If conflict is discovered between the COGCC s requirements and the requirements of Archuleta County, the applicant shall immediately bring the conflict to the attention of the County Planning Staff for consideration and resolution, as needed. 4) The issuance of a minor gas facility permit authorizes only the well and related facilities for which it is issued; such permit shall run with the land

11 5) Wells shall be drilled within one (1) year of the date of approval; failure to commence drilling within this time will cause the permit to expire. 6) The county requests that all access to this well would be via County Road 988 only. 7) Compliance with Road and Bridge Department for access will be required to include, but not limited to: bonding in the amount of $20,000 for a 2 year period to cover potential damage to the right-of-way. Additional access permit terms and conditions will be determined through review of the access permit application. 8) Failure to maintain the conditions of approval will be a violation of these regulations and subject the permit holder to revocation and all other enforcement remedies and penalties. Pre-Construction Requirements: 1) The applicant shall submit to the Archuleta County Planning Department the groundwater sampling results as described in Section of the Archuleta County Land Use Regulations. Well Operation Requirements: 1) Upon completion of the well s construction, an as-built facilities map shall be submitted, along with emergency contact information, to the Archuleta County Office of Emergency Management. The map shall show the exact name, location, and description of all facilities, including the size and type of all pipelines and isolation valves that make up and/or serve the well and the well site superintendent s name and phone numbers. Energen Resources Corp. will notify the Archuleta County Planning Department that the Office of Emergency Management has received this map and contact information, once it has been provided. 2) Energen Resources Corp. and its subcontractors shall adhere to all safety rules and regulations imposed by Archuleta County, the COGCC, and OSHA. Unsafe conditions or actions shall not be permitted anywhere on the Lyman property or within Archuleta County. Vehicles shall operate at posted speed limits and at low speed levels when on private property. Drivers shall remain vigilant to pedestrians, wildlife, and other potential roadway hazards. 3) The applicant shall notify the Archuleta County Planning Staff upon completion of the well. The applicant shall comply with all noxious weed abatement efforts - 3 -

12 prescribed by the County Weed and Pest Control Department. Any weed inspection and subsequent abatement efforts will need to be performed when suitable weather conditions permit. 4) The applicant shall submit a certificate of insurance showing a comprehensive general liability or approved self-insurance plan no less than $400,000 per occurrence covers this operation