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3777 BATAA OIL I~j004/005 <br />~~ <br />MEMORANDUM <br />I~;i <br />TO. { Karen Fianders, Tetra Tech RMC <br />FROM: „I Keith Crouch <br />;,, <br />DATE: III June 12, 20Q3 <br />RE: ,'I! Hall-Irwin Corporation's Nissen Farm Resource Grave! Mining <br />Operation <br />i ; ~~ <br />The following are the preliminary comments of Merit Energy Company <br />("Merit") on the materials sent to Merit Energy Partners III, LP under cover of May <br />27, 2003: At the outset, you should be aware that Merit entered into an <br />agreement with Hall-Irwin with respect to the S/2 of Section 1, T4N, R67W, 6"' <br />P.M., Weld County, Colorado (the "Agreement°), The Agreement was recorded <br />in the records of Weld County, Colorado on April 11, 2003 under Reception No. <br />3051783. If you would like a copy, please let me know, but Tetra Tech <br />represented Hall-Irwin in connection with that agreement so a copy should be <br />readily available to you. <br />The Agreement was entered into after detailed negotiations and Merit is <br />willing tv enter into the same agreement far the lands covered by the current <br />application. Please let me know ff that is aaeptable to Ha0-Irwin. <br />A's you know, Merit Energy operates the Law # 1 and the Sandy # 1 Wells <br />that are located respectively in the NE/4SFJ4 and the NW/4SE/4 of Section 12, <br />TSN, R65W, 6~h P.M„ Weld County, Colorado. Merits concern is that Hall-Irwin's <br />mining~operations not interfere with Merit's operation and maintenance of the <br />Wells and any undeveloped locations it owns in the area affected by the <br />proposed mining operation. Merit is in the process of determining whether it <br />owns any undeveloped locations that maybe in the area affected by the <br />proposed mining operation. <br />,.. ; <br />Merits basic requirements for the operation and maintenance of the Wells <br />indude;'but are not limited, to a flat working area of 150 feet around the wellhead <br />of each of the Wells within which there are to be no mining operations except that <br />Hall-Irwin may conduct temporary mining operations on a quarter circle basis <br />within'7,5 feet of the Wells on the basis set forth in paragraph 7 a of the <br />Agreement. In addition to the flat working area, Merit needs to have complete, <br />unfettered daily access to the Wells and their associated production facilities. <br />Section!2 of the Agreement addresses access issues and I refer you to that <br />section~for the specifics. In addition, Merit will require an easement 15 feet in <br />width on either side of the flowlines for the Wells so the flowlines can be <br />ti , <br />r <br /> <br />