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401779047 02A 2019-07-12T22:15:46.007-06:00 10633 CRESTONE PEAK RESOURCES OPERATING LLC

1801 CALIFORNIA STREET #2500

DENVER CO 80202 Toby Sachen 720 410-8536 Toby Sachen Contractor 2019-07-12T22:15:46.007-06:00 2019-07-12T22:15:45.897-06:00 UPLOADED trsachen 2018-09-29T20:45:23.063-06:00 trsachen toby.sachen@crestonepr.com 9.00000 toby.sachen@crestonepr.com garrisop garrisop 2019-07-18T11:30:01.747-06:00 401779047 true true false false false false 10H-E165 Warner WELD SWNW 10 1N 65W 6 4971 2202 FNL 353 FWL 40.067252 -104.658249 2.3 2018-08-23T00:00:00-06:00 Aaron Rivera 13 8 2 13 8 Oil, water and gas will flow combined from the wellheads to the production facilities through flowlines (one flowline from each wellhead). The flowline is 3" FCA3 steel, epoxy coated, welded and pressure tested. It will be buried 4' deep. A gas sales pipeline will be determined by KMG at a later date. Oil and water will be trucked off site. 2019-11-15T00:00:00-07:00 2020-07-15T00:00:00-06:00 4971 true false false OFFSITE Commercial Disposal 2018-08-15T00:00:00-06:00 FEE FEE true true false false oil and gas lease true 20160104 false false true true 82—Wiley-Colby complex, 1 to 3 percent slopes false false false false false false false false false true 1187 922 10 false false No false 13.16 3.60 7 true OFFSITE Commercial Disposal true Nearest well, permit 137539-A Multiple monitoring wells in NENE section 10 with static water levels ranging from 3.3'-10.3'. Permit #270905 in SWNE section 16 was drilled to 11.5' and was dry. Interpolating between these two, estimated static water level at the location is 10'. Sensitive area determination based on the depth to groundwater. 318A false false false false false false false false false NO true true false false false false false false false false false false N/A County false false Waived Although Weld County waived their right to precede the COGCC with respect to siting, that WOGLA permit was applied for on May 7, 2019 and is In Process. WOGLA 2019-05-07T00:00:00-06:00 401779047 Reference location Warner 2F-10H-E165. This pad replaces Ottesen 3H-L165. That location and associated wells will be abandoned. A temporary completions area of approximately four acres will be utilized for 2 fresh water storage tanks to be used during completions operations. The state-licensed manufacturer for the subject site will either be MWS or Pinnacle Manufacturing. The tanks will hold between 40,000-42,000 barrels, are between 153’-158’ in diameter, and plan to be on location for 91 days. Once completions operations are complete, this area will be completely reclaimed. Crestone certifies that the MLVTs are designed and implemented consistent with the June 13, 2014 “Policy on the Use of Modular Large Volume Tanks in Colorado.” Please see attached map for the location of the tanks Operator submited sundries to abandon Ottesen pad which interferes with the Warner pad. 401779047 401779047 FORM 2A SUBMITTED 401779047.pdf 401779047 401789095 NRCS MAP UNIT DESC NRCS - Map_Unit_Description - 82 - Wiley-Colby_complex_1_to_3_percent_slopes--Weld_County_Colorado_Southern_Part.pdf 123763 401779047 401789105 HYDROLOGY MAP Warner 10H-E165 Pad 1N65W10 Hydrology Map.pdf 1015615 401779047 401789150 LOCATION PICTURES Warner 10H-E165 Pad 1N65W10 Location Photos.pdf 510893 401779047 401789152 WASTE MANAGEMENT PLAN CPR WMP Summary.pdf 100088 401779047 401804085 SURFACE AGRMT/SURETY Warner 10H-E165 SDA - Executed and Redacted.pdf 1081331 401779047 401805748 LOCATION DRAWING Warner 10H-E165 Pad 1N65W10 Location Drawing.pdf 887196 401779047 401826619 MULTI-WELL PLAN Warner 10H-E165 Pad Multi-Well Plan.pdf 49202 401779047 402068659 ACCESS ROAD MAP Warner 10H-E165 Pad 1N65W10 WOGLA Access Road Map.pdf 1570033 401779047 401779032 02 401779047 401779034 02 401779047 401779035 02 401779047 401779036 02 401779047 401779037 02 401779047 401779038 02 401779047 401779040 02 401779047 401779041 02 401779047 401779042 02 401779047 401779043 02 401779047 401779044 02 401779047 401779045 02 401779047 401779046 02 45707a70-811d-435a-be42-41dcacad3276 401779047 12 Odor mitigation Crestone operations will be in compliance with the Department of Public Health and Environment, Air Quality Control Commission, Regulation No. 2 Odor Emission, 5 C.C.R. 1001-4, Regulation No. 3 (5 C.C.R. 1001-5), and Regulation No. 7 Section XVII.B.1 (a-c) and Section XII. Where possible, drilling rig and completion equipment engine exhaust will be directed away from occupied buildings to assist in mitigating potential odors. As necessary, Crestone may utilize chemical additives during drilling operations to mitigate odor impacts. Sealed tanks with pressure relief valves and emissions controls will be utilized for the production facilities. false 717f6055-2f76-481f-a5e3-4bd3fff74520 401779047 11 Noise mitigation Crestone Peak Resources will construct the subject location to allow potential future noise mitigation installation without disturbance. false 8a8cb58e-4502-45b7-a0a7-71c6baeecbf3 401779047 7 Material Handling and Spill Prevention Crestone will follow and comply with all leak detection and repair and storage tank emission management plan conditions as required by Colorado Air Quality Control Commission Regulation Number 7. This will include at least monthly Audible, Visual and Olfactory (AVO) inspections of the components and tanks at our Production Facilities at most weekly or at least monthly starting on January 1, 2017. In addition, Crestone will perform infra-red camera inspections of these components and the storage tanks at most monthly or at least annually. false bf5ea746-955f-4a37-8ce1-7ce5300fc377 401779047 1 General Housekeeping Flammable liquids shall not be stored within fifty (50) feet of the wellbore, except for the fuel in the tanks of operating equipment or supply for injections pumps. Where terrain and location configuration do not permit maintaining this distance, equivalent safety measures should be taken. false 28f2a119-5ea6-44a5-8c7a-82aa0f1c98c1 401779047 3 Material Handling and Spill Prevention 1.Integrity testing of flowlines connecting wellheads to the separators: CONSTRUCTION PHASE: The flowlines that Crestone uses are designed/constructed/tested to ASME B31.3/4/8 and API 1104 standards. Only materials with Material Test Reports (MTRs) provided by the pipeline supplier are used in the construction of the flowlines. Construction is tested with 100% x-ray and goes through hydrotest per the applicable B31-code. OPERATIONS PHASE: Pressure testing of the flowlines is conducted on an annual basis. Additionally, Crestone is already in compliance with 1104.i. Continuous Pressure Monitoring Requirements of the 1100 Series Flowline Regulations. Crestone utilizes a series of standard operating procedures to define our flowline integrity testing program. 2. Frequency on valve and fitting inspections: Crestone Lease Operators inspect all equipment on their locations at a minimum of once every 48 hours, but most sites are inspected every 24 hours. Valves and fittings inspections are part of the daily job duties of our lease operators. Any valve or fitting that is found to be leaking is either repaired immediately by the lease operator or shut-in procedures are implemented as described below. Additionally, lease operators conduct a documented monthly inspection of the facility and this includes inspection of all valves and fittings. 3. Description of Lease Operator Inspections, Monthly Documented Inspections & Environmental Inspections: The Crestone lease operator inspections are done as a routine part of the lease operators job. The lease operator would typically visit each of their assigned locations daily. They conduct a visual inspection of the facility which includes all valves, fittings, wellhead, tanks, vapor control systems and all connections. The lease operator also checks our Cygnet automation system for system pressures and flows. Pressure and flow sensors are placed on multiple points throughout the system and are specifically designed to measure the system for irregularities that would indicate a leak in the system or change in production of oil, water, or gas. The Cygnet system is also set-up with alarms that are triggered by anomalous pressure or flows. Low pressure warnings can activate automatic shut-in of the well and system. The monthly documented inspection is done using an electronic form that is recorded in the EU system. This thorough inspection and documentation requires the lease operator to inspect all aspects of the site and then triggers work orders for any leaks, or housekeeping issues. This inspection would note any leaks of either gas or fluids which triggers an immediate repair or shut-in. The Lease operators also conduct a weekly CDPHE Regulation 7 – Audible, Visual, and Olfactory (AVO)inspection, which focus on the tanks and vapor control system. The Regulation 7 AVO is also a documented inspection. In addition, the sites are inspected with optical gas imaging cameras on a routine schedule, annually for compliance purposes with our Spill Prevention Containment and Countermeasures (SPCC) plan, depending on the status of reclamation the sites are also inspected on either a 14-day, 30-day, annual or rain triggered event in accordance with both the COGCC and the CDPHE Stormwater Management Plans (SWMP).4. Measures for when leaks are discovered:• If we suspect a leak we shut in the well and hydrotest the line. If it passes, then the well is brought back onto production.• If there is an actual leak, well is kept shut in while leak is found and fixed. Not until the line has passed hydrotesting,would the well be brought back online. false 947094bd-e4fc-48ea-936c-b38a6aac57dd 401779047 6 Material Handling and Spill Prevention Crestone utilizes 24” tall corrugated galvanized metal berm walls with a capacity in excess of 150% of the largest tank contained within the wall. In addition, Crestone best practices mandates the use of impervious liners that extends under each storage tank and up the walls, permanently affixed to the top of the metal berm wall. Protrusions of piping that come through the liner include a fully sealed “boot” to prevent leakage. false c4b01247-47a5-45c5-95dd-b3a695d1f934 401779047 5 Material Handling and Spill Prevention Well effluent containing more than ten (10) barrels per day of condensate or within two (2) hours after first encountering hydrocarbon gas of salable quality will be directed to a combination of sand traps, separators, surge vessels, and tanks as needed to ensure safe separation of sand, hydrocarbon liquids, water, and gas and to ensure salable products are efficiently recovered for sale or conserved and that non-salable products are disposed of in a safe and environmentally responsible manner. false 406ae766-fcf8-4a99-b0e9-b9f1555226f3 401779047 8 Dust control Crestone Peak Resources places road base, rock and recycled asphalt to assist with dust abatement. During construction, drilling, completions and reclamations phases, Crestone monitors each site and if needed we will run water trucks false 45d83999-2019-40af-9d6e-c171148e0b31 401779047 9 Construction Operator will have an MLVT Design Package, certified and sealed by a licensed professional engineer, which is on file in their office and available upon request. The site shall be prepared in accordance with the specifications of the design package prior to tank installation; including ensuring that proper compaction requirements have been met. The MLVT will be at least 75 feet from a wellhead, fired vessel, heater-treater, or a compressor with a rating of 200 horsepower or more. It will be placed at least 50 feet from a separator, well test unit, or other non-fired equipment. All liner seams will be welded and tested in accordance with applicable ASTM international standards. Operator will be present during initial filling of the MLVT and the contractor will supervise and inspect the MLVT for leaks during filling. Operator will comply with the testing and re-inspection requirements and associated written standard operating procedures (SOP) listed on the design package. Signs will be posted on the MLVT indicating that the contents are freshwater. The MLVT will be operated with a minimum of 1 foot of freeboard at all times. Access to the MLVT will be limited to operational personnel and authorized regulatory agency personnel. Operator or contractor will conduct daily visual inspections of the exterior wall and surrounding area for integrity deficiencies. Operator will have a contingency plan/emergency response plan associated with the MLVT and it is on file at their office. A fabric reinforced liner will be utilized. In the event that a tank breach were to occur, the fabric reinforced liner will prevent a “zippering” failure from occurring. The liner will meet the specifications per the design package. Operator acknowledges and will comply with the Colorado Oil & Gas Conservation Commission Policy on the Use of Modular Large Volume Tanks in Colorado dated June 13, 2014. false 6c09b009-930a-43e2-b5ea-cb524e4ce243 401779047 13 Drilling/Completion Operations Green Completions -Test separators and associated flow lines, sand traps and emission control systems shall be installed on-site to accommodate green completions techniques. When commercial quantities of salable quality gas are achieved at each well, the gas shall be immediately directed to a sales line or shut in and conserved. If a sales line is unavailable or other conditions prevent placing the gas into a sales line, the operator shall not produce the wells without an approved variance per Rule 805.b.(3)C. false 8d27b405-9861-4c99-92d6-d9e74f6d82de 401779047 4 Material Handling and Spill Prevention Protection of Shallow Groundwater: Crestone places 40mm liner under all mud tanks, as well as the surface and production rig to catch any releases that may occur. In addition, we line our well cellars with a liner material. Conex containment is also used to house items. false 6b8356ca-4074-4798-8163-e99cb0f1dfc8 401779047 2 Storm Water/Erosion Control Crestone will comply with COGCC Rule 1002.f.(2). by utilizing BMPs at the oil and gas location to control stormwater runoff in a manner that minimizes erosion, transport of sediment offsite, site degradation and protects surface waters. Examples of engineering controls that could be used when needed are: Surface roughening Silt fence Erosion control blanket Temporary slope drain Temporary outlet protection Sediment control log Vehicle tracking control Sediment trap Stabilized staging area false 0de60f80-1fc2-4f0c-8fea-fa91405d15c6 401779047 10 Noise mitigation Crestone will perform a baseline noise survey prior to any operational activity measuring dBA at a distance 350 feet from the noise source or sound levels will be measured at a point twenty-five (25) feet from the structure towards the noise source. In situations where measurement of noise levels at three hundred and fifty (350) feet is impractical or unrepresentative due to topography, the measurement may be taken at a lesser distance and extrapolated to a 350-foot equivalent using the formula stated in Rule 802 of the State of Colorado Oil and Gas Conservation Commission. As necessary, based on the survey, Crestone will install temporary sound walls to minimize noise and light impacts during drilling and completions and will install permanent noise mitigation at the facility location as necessary to meet all COGCC regulations. false 401779047 Warner Revocable Trust

250 E Alameda St.

Apt. 517 Santa Fe NM 87501 401779047 13 8 2 13 8 Oil, water and gas will flow combined from the wellheads to the production facilities through flowlines (one flowline from each wellhead). The flowline is 3" FCA3 steel, epoxy coated, welded and pressure tested. It will be buried 4' deep. A gas sales pipeline will be determined by KMG at a later date. Oil and water will be trucked off site. 7 401779047 C true 401779047 F true 401779047 false false false false false false false false Thread was being aborted.