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BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

IN THE MATTER OF THE APPLICATION OF THE CITY OF LONGMONT FOR OUTSIDE ACTIVITY AREA DESIGNATION PART OF THE N½ OF SECTION 6, TOWNSHIP 2 NORTH, RANGE 68 WEST, PART OF THE NW¼ OF SECTION 5, TOWNSHIP 2 NORTH, RANGE 68 WEST AND PART OF THE S½ OF THE SW¼ OF SECTION 32, TOWNSHIP 3 NORTH, RANGE 68 WEST OF THE 6^TH P.M., WELD COUNTY, COLORADO

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CAUSE NO. 1

ORDER NO. 1-181

REPORT OF THE COMMISSION

The Commission heard this matter on August 20, 2012, at the offices of the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203, upon application for an order to designate the Union Reservoir Recreation Area as a Designated Outside Activity Area, in accordance with Rule 603.d of the Rules of the Oil and Gas Conservation Commission for the NW¼ of Section 5 and N½ of Section 6, Township 2 North, Range 68 West, 6^th P.M. and S½ SW¼ of Section 32, Township 3 North, Range 68 West, 6^th P.M.

FINDINGS

The Commission finds as follows:

1. Union Reservoir Company (“Union”), and the City of Longmont, Colorado, a municipal corporation (“Longmont”), as applicants herein (“Applicants”), are interested parties in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order pursuant to the Oil and Gas Conservation Act.

4. On June 21, 2012, Applicants, by its attorneys, filed with the Commission pursuant to § 34-60-116 C.R.S., an application (“Application”) which was supported by a Verification filed on July 26, 2012, for an order to designate the Union Reservoir Recreation Area, below-described lands (“Application Lands”) as a Designated Outside Activity Area (“DOAA”), in accordance with Rule 603.d. and 603.e., of the Rules and Regulations of the Oil and Gas Conservation Commission:

Township 2 North, Range 68 West, 6^th P.M.

Section 5: NW¼

Section 6: N½

Township 3 North, Range 68 West, 6^th P.M.

Section 32: S½ SW¼

5. On August 7, 2012, Applicants, by its attorneys, filed with the Commission a written request to approve the Application based on the merits of the verified Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application. A Notice of Non-Objection and Consent by TOP Operating Company (“TOP”) was submitted in support of the Application.

6. Testimony and exhibits submitted in support of the Application by Kim Shugar, Manager of the Natural Resources Division for Longmont, showed that Longmont has leased the Union Recreation Area for outdoor activities since 1991 and that the area is a popular local and regional destination that has been developed by Longmont for recreation and public use. Testimony further showed that visitation to Union Recreation Area has increased over the last several years and the area is used for swimming, boating, bicycling, running, family, athletic events, and social gatherings. Testimony further showed Longmont has invested approximately $1.8 million to improve and upgrade the Union Recreation Area in order to provide outdoor recreation opportunities for the citizens of Longmont and surrounding communities.

7. Testimony and exhibits submitted in support of the Application by John Brim, Parks and Open Space Ranger for Longmont, showed that the Union Recreation Area is occupied by at least 20 or more persons on at least 40 or more days in any 12-month period, and/or by at least 500 people or more on at least 3 days in any 12-month period. Testimony included annual revenues and daily visitation for March, April and May 2012.

8. Testimony and exhibits submitted in support of the Application by Brad Schol Planning Manager for the City of Longmont, showed that Longmont and TOP negotiated a contract which provides that TOP will receive surface location areas where it will be allowed to drill, complete and operate wells, and locate and operate surface facilities on lands owned by Longmont. Testimony concluded that those locations will allow TOP to access to the Application Lands without disturbing the surface of the DOAA.

9. Testimony and exhibits submitted in support of the Application by Peter D. Steger, Vice President of Survey Operations for Civil Arts, included a legal survey describing the boundaries of the Application Lands, which are hereby incorporated into this Order as follows:

“A TRACT OF LAND LOCATED IN THE N1/2 OF SECTION 6, T2N, R68W OF THE 6TH P.M., AND IN THE S1/2 OF SECTION 31, T3N, R68W OF THE 6TH P.M., COUNTY OF WELD, STATE OF COLORADO, DESCRIBED AS FOLLOWS:

COMMENCING AT THE NE CORNER OF THE S1/2 OF THE NW1/4 OF SAID SECTION 6, T2N, R68W OF THE 6TH P.M. FROM WHICH THE SE CORNER OF SAID S1/2 OF THE NW1/4 OF SAID SECTION 6 BEARS S00°09'21"W, 1297.95' FEET (BASIS OF BEARING); THENCE N00°09'21"E 26.52' ALONG THE EAST LINE OF THE N1/2 OF SAID NW1/4 OF SECTION 6 TO THE NORTHERLY RIGHT-OF-WAY LINE OF WELD COUNTY ROAD 26

THENCE S87°55'47"W, 186.61 FEET ALONG SAID NORTHERLY RIGHT-OF-WAY LINE TO THE WESTERLY LINE OF THE PARCEL CONVEYED TO THE UNION RESERVOIR COMPANY BY THE WARRANTY DEED RECORDED IN BOOK 200 AT PAGE 370 OF THE WELD COUNTY RECORDS BEING ALSO THE EASTERLY LINE OF LOT A RECORDED EXEMPTION 1313-6-2 RE 1561 ACCORDING TO THE RECORDED PLAT THEREOF;

THENCE N26°43'53"E, 296.87 FEET ALONG THE LINE COMMON TO SAID PARCEL DESCRIBED IN BOOK 200 AT PAGE 370 AND SAID LOT A;

THENCE CONTINUING N26°43'53"E, 119.94 FEET ALONG SAID WESTERLY LINE OF THE PARCEL DESCRIBED IN BOOK 200 AT PAGE 370 TO THE WESTERLY LINE OF THE PARCEL CONVEYED TO THE UNION RESERVOIR COMPANY BY THE WARRANTY DEED RECORDED IN BOOK 200 AT PAGE 372 OF THE WELD COUNTY RECORDS BEING ALSO THE EAST LINE OF SAID N1/2 OF THE NW1/4 OF SECTION 6;

THENCE N00°09'21"E, 338.50 FEET ALONG SAID WESTERLY LINE OF THE PARCEL DESCRIBED IN BOOK 200 AT PAGE 372 AND SAID EAST LINE OF THE N1/2 OF THE NW1/4 OF SECTION 6 TO THE NORTHERLY LINE OF THE OLIGARCHY DITCH;

THENCE NORTHWESTERLY ALONG SAID NORTHERLY LINE OF THE OLIGARCHY DITCH THE FOLLOWING FOURTEEN (14) COURSES:

1) N60°57'18"W, 185.75 FEET;

2) N68°02'26"W, 152.63 FEET;

3) N49°12'25"W, 149.63 FEET;

4) N65°56'07"W, 43.88 FEET;

5) S88°05'55"W, 126.86 FEET;

6) N83°01'58"W, 53.29 FEET;

7) N69°16'35"W, 276.87 FEET TO A POINT OF CURVE TO THE RIGHT;

8) 8.96 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 20°32'03", AND BEING SUBTENDED BY A CHORD WHICH BEARS N59°00'33"W, 8.91 FEET; TO A POINT OF REVERSE CURVE

9) 2.19 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 60.00 FEET, A CENTRAL ANGLE OF 68°55'56", AND BEING SUBTENDED BY A CHORD WHICH BEARS N83°12'29"W, 67.91 FEET TO A POINT OF TANGENCY;

10) S62°19'33"W, 45.12 FEET;

11) S71°37'27"W, 90.33 FEET;

12) S81°14'44"W, 102.98 FEET TO A POINT OF CURVE TO THE RIGHT;

13) 130.40 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 100.00 FEET, A CENTRAL ANGLE OF 74°42'54", AND BEING SUBTENDED BY A CHORD WHICH BEARS N61°23'48"W, 121.36 FEET TO A POINT OF TANGENCY;

14) N24°02'21"W, 81.89 FEET TO THE SOUTH LINE OF TRACT XI OF UNION RESERVOIR CONVEYED TO THE UNION RESERVOIR COMPANY AS DESCRIBED IN CIVIL ACTION NO. 80-CV-403 RECORDED IN BOOK 911 AS RECEPTION NO. 1833434 OF THE RECORDS OF WELD COUNTY;

THENCE N89°08'23"E, 1113.50 FEET ALONG SAID SOUTH LINE;

THENCE N05°42'44"E, 16.49 FEET;

THENCE N84°50'20"E, 24.81 FEET;

THENCE N20°35'36"W, 54.99 FEET TO THE WESTERLY LINE OF TRACT VI OF UNION RESERVOIR CONVEYED TO THE UNION RESERVOIR COMPANY AS DESCRIBED IN BOOK 200, AT PAGE 456 IN CIVIL ACTION NO. 80-CV-403 RECORDED IN BOOK 911 AS RECEPTION NO. 1833434 OF THE WELD COUNTY RECORDS;

THENCE NORTHERLY ALONG SAID WESTERLY LINE OF TRACT VI THE FOLLOWING TWO (2) COURSES;

1) N58°07'36"W, 53.88 FEET;

2) N31°52'36"W, 468.01 FEET;

THENCE N19°09'16"W, 104.35 FEET TO SAID WESTERLY LINE OF TRACT VI AS DESCRIBED IN BOOK 911 AT RECEPTION NO. 1833434;

THENCE N13°02'24"E, 114.21 FEET ALONG SAID WESTERLY LINE;

THENCE S80°22'37"E, 77.88 FEET TO THE APPROXIMATE LOW WATER LINE OF UNION RESERVOIR;

THENCE SOUTHEASTERLY ALONG SAID APPROXIMATE LOW WATER LINE THE FOLLOWING FIFTEEN (15) COURSES:

1) S33°35'13"E, 175.24 FEET;

2) S12°21'01"W, 117.12 FEET TO A POINT OF CURVE TO THE LEFT;

3) 79.95 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 100.00 FEET, A CENTRAL ANGLE OF 45°48'23", AND BEING SUBTENDED BY A CHORD WHICH BEARS S10°33'11"E, 77.84 FEET TO A POINT OF TANGENCY;

4) S33°27'22"E, 225.35 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

5) 89.49 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 70.27 FEET, A CENTRAL ANGLE OF 72°57'38", AND BEING SUBTENDED BY A CHORD WHICH BEARS S31°40'09"E, 83.56 FEET TO A NON-TANGENT POINT;

6) S05°56'04"E, 59.43 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

7) 95.39 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 80.46 FEET, A CENTRAL ANGLE OF 67°55'48", AND BEING SUBTENDED BY A CHORD WHICH BEARS S52°42'46"E, 89.90 FEET TO A NON-TANGENT POINT;

8) S19°06'29"W, 15.25 FEET;

9) S41°12'23"E, 113.90 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

10) 398.86 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 1339.29 FEET, A CENTRAL ANGLE OF 17°03'48", AND BEING SUBTENDED BY A CHORD WHICH BEARS S52°11'36"E, 397.39 FEET TO A NON-TANGENT POINT;

11) S32°39'13"E, 232.78 FEET;

12) S50°53'19"E, 124.42 FEET TO A NON-TANGENT POINT OF CURVE TO THE LEFT;

13) 350.66 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE NORTHEAST, SAID ARC HAVING A RADIUS OF 649.03 FEET, A CENTRAL ANGLE OF 30°57'20", AND BEING SUBTENDED BY A CHORD WHICH BEARS S58°15'07"E, 346.41 FEET TO A NON-TANGENT POINT OF REVERSE CURVE;

14) 364.83 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 4670.91 FEET, A CENTRAL ANGLE OF 4°28'31", AND BEING SUBTENDED BY A CHORD WHICH BEARS S67°07'57"E, 364.74 FEET TO A NON-TANGENT POINT OF REVERSE CURVE;

15) 408.31 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE NORTHEAST, SAID ARC HAVING A RADIUS OF 1654.58 FEET, A CENTRAL ANGLE OF 14°08'21", AND BEING SUBTENDED BY A CHORD WHICH BEARS S69°08'49"E, 407.28 FEET TO A NON-TANGENT POINT ON SAID NORTHERLY RIGHT-OF-WAY LINE OF WELD COUNTY ROAD 26;

THENCE WESTERLY ALONG SAID NORTHERLY RIGHT-OF-WAY LINE THE FOLLOWING TWO (2) COURSES:

1) S87°50'38"W, 1509.70 FEET TO SAID EAST LINE OF THE N1/2 OF THE NW1/4 OF SECTION 6;

2) S00°09'21"W, 3.50 FEET ALONG SAID EAST LINE TO THE POINT OF BEGINNING.

AREA = 973,842 SQUARE FEET (22.356 ACRES), MORE OR LESS.”

10. The above-referenced testimony and exhibits show that the Application Lands are used for public recreation, and that public usage meets the occupancy requirements for a DOAA as set forth in the 100 Series rules.

11. Applicants agreed to be bound by oral order of the Commission.

12. Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Officer review of the Application under Rule 511, the Commission should enter an order to designate the Union Reservoir Recreation Area as a DOAA, in accordance with Rule 603.d of the Rules and Regulations of the Oil and Gas Conservation Commission for the NW¼ of Section 5 and N½ of Section 6, Township 2 North, Range 68 West, 6^th P.M. and S½ SW¼ of Section 32, Township 3 North, Range 68 West, 6^th P.M. The Commission should also require any well drilled on these lands to be located no less than 350 feet from the boundary of the outside area and require that all surface equipment be located at least 500 feet from the DOAA, as set forth in Rule 603.e.(3).

ORDER

NOW, THEREFORE IT IS ORDERED, that in accordance with Rule 603.d of the Oil and Gas Conservation Commission, the Union Reservoir Recreation Area is hereby designated an outside activity area for the below-described lands:

Township 2 North, Range 68 West, 6^th P.M.

Section 5: NW¼

Section 6: N½

Township 3 North, Range 68 West, 6^th P.M.

Section 32: S½ SW¼;

The legal boundary of the DOAA is incorporated as follows:

“A TRACT OF LAND LOCATED IN THE N1/2 OF SECTION 6, T2N, R68W OF THE 6TH P.M., AND IN THE S1/2 OF SECTION 31, T3N, R68W OF THE 6TH P.M., COUNTY OF WELD, STATE OF COLORADO, DESCRIBED AS FOLLOWS:

THENCE N26°43'53"E, 296.87 FEET ALONG THE LINE COMMON TO SAID PARCEL DESCRIBED IN BOOK 200 AT PAGE 370 AND SAID LOT A;

THENCE NORTHWESTERLY ALONG SAID NORTHERLY LINE OF THE OLIGARCHY DITCH THE FOLLOWING FOURTEEN (14) COURSES:

15) N60°57'18"W, 185.75 FEET;

16) N68°02'26"W, 152.63 FEET;

17) N49°12'25"W, 149.63 FEET;

18) N65°56'07"W, 43.88 FEET;

19) S88°05'55"W, 126.86 FEET;

20) N83°01'58"W, 53.29 FEET;

21) N69°16'35"W, 276.87 FEET TO A POINT OF CURVE TO THE RIGHT;

22) 8.96 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 20°32'03", AND BEING SUBTENDED BY A CHORD WHICH BEARS N59°00'33"W, 8.91 FEET; TO A POINT OF REVERSE CURVE

23) 2.19 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 60.00 FEET, A CENTRAL ANGLE OF 68°55'56", AND BEING SUBTENDED BY A CHORD WHICH BEARS N83°12'29"W, 67.91 FEET TO A POINT OF TANGENCY;

24) S62°19'33"W, 45.12 FEET;

25) S71°37'27"W, 90.33 FEET;

26) S81°14'44"W, 102.98 FEET TO A POINT OF CURVE TO THE RIGHT;

27) 130.40 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 100.00 FEET, A CENTRAL ANGLE OF 74°42'54", AND BEING SUBTENDED BY A CHORD WHICH BEARS N61°23'48"W, 121.36 FEET TO A POINT OF TANGENCY;

28) N24°02'21"W, 81.89 FEET TO THE SOUTH LINE OF TRACT XI OF UNION RESERVOIR CONVEYED TO THE UNION RESERVOIR COMPANY AS DESCRIBED IN CIVIL ACTION NO. 80-CV-403 RECORDED IN BOOK 911 AS RECEPTION NO. 1833434 OF THE RECORDS OF WELD COUNTY;

THENCE N89°08'23"E, 1113.50 FEET ALONG SAID SOUTH LINE;

THENCE N05°42'44"E, 16.49 FEET;

THENCE N84°50'20"E, 24.81 FEET;

THENCE NORTHERLY ALONG SAID WESTERLY LINE OF TRACT VI THE FOLLOWING TWO (2) COURSES;

3) N58°07'36"W, 53.88 FEET;

4) N31°52'36"W, 468.01 FEET;

THENCE N19°09'16"W, 104.35 FEET TO SAID WESTERLY LINE OF TRACT VI AS DESCRIBED IN BOOK 911 AT RECEPTION NO. 1833434;

THENCE N13°02'24"E, 114.21 FEET ALONG SAID WESTERLY LINE;

THENCE S80°22'37"E, 77.88 FEET TO THE APPROXIMATE LOW WATER LINE OF UNION RESERVOIR;

THENCE SOUTHEASTERLY ALONG SAID APPROXIMATE LOW WATER LINE THE FOLLOWING FIFTEEN (15) COURSES:

16) S33°35'13"E, 175.24 FEET;

17) S12°21'01"W, 117.12 FEET TO A POINT OF CURVE TO THE LEFT;

18) 79.95 FEET ALONG THE ARC OF SAID CURVE, SAID ARC HAVING A RADIUS OF 100.00 FEET, A CENTRAL ANGLE OF 45°48'23", AND BEING SUBTENDED BY A CHORD WHICH BEARS S10°33'11"E, 77.84 FEET TO A POINT OF TANGENCY;

19) S33°27'22"E, 225.35 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

20) 89.49 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 70.27 FEET, A CENTRAL ANGLE OF 72°57'38", AND BEING SUBTENDED BY A CHORD WHICH BEARS S31°40'09"E, 83.56 FEET TO A NON-TANGENT POINT;

21) S05°56'04"E, 59.43 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

22) 95.39 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 80.46 FEET, A CENTRAL ANGLE OF 67°55'48", AND BEING SUBTENDED BY A CHORD WHICH BEARS S52°42'46"E, 89.90 FEET TO A NON-TANGENT POINT;

23) S19°06'29"W, 15.25 FEET;

24) S41°12'23"E, 113.90 FEET TO A NON-TANGENT POINT OF CURVE TO THE RIGHT;

25) 398.86 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 1339.29 FEET, A CENTRAL ANGLE OF 17°03'48", AND BEING SUBTENDED BY A CHORD WHICH BEARS S52°11'36"E, 397.39 FEET TO A NON-TANGENT POINT;

26) S32°39'13"E, 232.78 FEET;

27) S50°53'19"E, 124.42 FEET TO A NON-TANGENT POINT OF CURVE TO THE LEFT;

28) 350.66 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE NORTHEAST, SAID ARC HAVING A RADIUS OF 649.03 FEET, A CENTRAL ANGLE OF 30°57'20", AND BEING SUBTENDED BY A CHORD WHICH BEARS S58°15'07"E, 346.41 FEET TO A NON-TANGENT POINT OF REVERSE CURVE;

29) 364.83 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE SOUTHWEST, SAID ARC HAVING A RADIUS OF 4670.91 FEET, A CENTRAL ANGLE OF 4°28'31", AND BEING SUBTENDED BY A CHORD WHICH BEARS S67°07'57"E, 364.74 FEET TO A NON-TANGENT POINT OF REVERSE CURVE;

30) 408.31 FEET ALONG THE ARC OF SAID CURVE, CONCAVE TO THE NORTHEAST, SAID ARC HAVING A RADIUS OF 1654.58 FEET, A CENTRAL ANGLE OF 14°08'21", AND BEING SUBTENDED BY A CHORD WHICH BEARS S69°08'49"E, 407.28 FEET TO A NON-TANGENT POINT ON SAID NORTHERLY RIGHT-OF-WAY LINE OF WELD COUNTY ROAD 26;

THENCE WESTERLY ALONG SAID NORTHERLY RIGHT-OF-WAY LINE THE FOLLOWING TWO (2) COURSES:

3) S87°50'38"W, 1509.70 FEET TO SAID EAST LINE OF THE N1/2 OF THE NW1/4 OF SECTION 6;

4) S00°09'21"W, 3.50 FEET ALONG SAID EAST LINE TO THE POINT OF BEGINNING.

AREA = 973,842 SQUARE FEET (22.356 ACRES), MORE OR LESS.”

IT IS FURTHER ORDERED, that in accordance with Rule 603.d, any well drilled to the above-described lands shall be located no less than 350 feet from the boundary of the designated outside activity area.

IT IS FURTHER ORDERED, that in accordance with Rule 603.e.(3), all surface equipment should be located at least 500 feet from the boundary of the designated outside activity area, unless an exception is granted by the Director.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective immediately.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this Order to be final agency action for purposes of judicial review within 30 days after the date this Order is mailed by the Commission.

IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.

ENTERED this 5th day of September, 2012, as of August 20, 2012.

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

By____________________________________

Robert J. Frick, Secretary