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To avoid the unfair and potentially disastrous conflict with Schmidt's responsibilities, it has <br />been agreed to provide a technical revision to the permit that will remove Schmidt from <br />responsibility for disturbances made by oil and gas exploration and development. This applies to all <br />lands within the Reclamation Permit boundary. <br />TYPES OF OIL AND GAS DISTURBANCES: The oil and gas development involves primarily <br />two types of disturbance. First are disturbances created by exploration including the use of vibration <br />trucks (a.k.a. vibe trucks) and the setting of seismic sensors plus recording the seismic data. The <br />setting of seismic sensors generally involves only minor vehicle and foot traffic that rarely ever <br />produces lasting effects. The use of the large vibe trucks however does inflict superficial damage to <br />the vegetation as a result of the large, rubber tired wheels and the impact of the seismic panels with <br />the ground. These damages, although not permanent, are often longer lasting and may take a season <br />or more to recover. <br />The second type of disturbance involves actual development. This includes the construction <br />of access roads, drill pads, and many other facilities needed to drill the wells, plus pipelines for <br />transport. These disturbances are similar in general character to mining disturbances. By agreement, <br />conflicts with single parcels of land will be kept to a minimum by maintaining a separation between <br />oil and gas development activities and sand mining activities. The reclamation of these oil and gas <br />development disturbances on this property is under the control of the Colorado State Board of Land <br />Commissioners and the Colorado Oil and Gas Commission. The Colorado Mined Land Reclamation <br />Board has no control over the reclamation of disturbances produced by oil and gas development <br />activities. <br />DETERMINATION OF RESPONSIBILITY: The following list identifies the various <br />disturbances and who is responsible. <br />I. Schmidt Construction responsibility <br />A. Sand extraction locations. <br />B. Sand transport corridors on roads used exclusively for this purpose. <br />C. Sand processing facilities including stockpiles and scale. <br />D. Backhoe pits when looking for new deposits when the pit does not become part of a <br />new extraction location. <br />II. No Schmidt Construction responsibility <br />A. Oil and gas exploration disturbances <br />Technical Revision - Coal Creek Resources - M- 1988 -044 <br />11/22/11 final version Page 2 of 4 <br />