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WATER RESOURCE (SURFACE WATER AND GROUNDWATER) PROTECTION COAs: <br />Operator must ensure 110 percent secondary containment for any volume of fluids contained at well site during drilling <br />and completion operations; including, but not limited to, construction of a berm or diversion dike, diversion /collection <br />trenches within and /or outside of berms /dikes, site grading, or other comparable measures (i.e., best management <br />practices (BMPs) associated with stormwater management) sufficiently protective of nearby surface water. Any berm <br />constructed at the well pad location will be stabilized, inspected at regular intervals, and maintained in good condition. <br />Due to the very steep slopes to the north, this location is in an area of high run off /run on potential; therefore the pad <br />shall be constructed as quickly as possible and appropriate BMPs need to be in place both during, after well pad <br />construction completion, as well as during all drilling and well completion operations. Standard stormwater BMPs must be <br />implemented at this location to insure compliance with CDPHE and COGCC requirements and to prevent any stormwater <br />run -on and /or stormwater runoff. <br />Operator must implement best management practices to contain any unintentional release of fluids, including any fluids <br />conveyed via temporary surface pipelines or buried permanent pipelines. <br />Location is in a sensitive area due to shallow groundwater; therefore, no pits are allowed. <br />317B INTERMEDIATE BUFFER ZONE COAs: <br />A closed loop drilling system must be implemented. <br />Flowback and stimulation fluids must be sent to tanks to allow the sand to settle out before the fluids can be placed into <br />any pipeline or pit located on the well pad. The flowback and stimulation fluid tanks must be placed on the well pad in an <br />area with additional downgradient perimeter berming. The area where flowback fluids will be stored /reused must be <br />constructed to be sufficiently impervious to contain any spilled or released material (per Rule 604.a.(4)). <br />The moisture content of any drill cuttings in a cuttings pit, trench, or pile shall be as low as practicable to prevent <br />accumulation of liquids greater than de minimis amounts. At the time of closure, if drill cuttings are to remain /disposed of <br />onsite, they must also meet the applicable standards of table 910 -1. <br />Berms or other containment devices shall be constructed in compliance with Rule 604.a.(4) around crude oil, <br />condensate, and produced water storage tanks. <br />When sufficient water exists in the Classified Water Supply Segment, collection of baseline surface water data consisting <br />of a pre - drilling surface water sample collected immediately downgradient of the oil and gas location and follow -up <br />surface water data consisting of a sample collected at the same location three (3) months after the conclusion of any <br />drilling activities and operations or completion. The sample parameters shall include: pH; alkalinity; specific conductance; <br />major cations /anions (chloride, fluoride, sulfate, sodium); total dissolved solids (TDS); benzene, toluene, ethylbenzene, <br />total xylenes (BTEX); gasoline range organics (GRO): diesel range organics (DRO); total petroleum hydrocarbons (TPH); <br />polyaromatic hydrocarbons (PAH's [including benzo(a)pyrene]); and metals (arsenic, barium, calcium, chromium, iron, <br />magnesium, selenium). Current applicable EPA - approved analytical methods for drinking water must be used and <br />analyses must be performed by laboratories that maintain state or nationally accredited programs. Copies of all test <br />results described above shall be provided to the Commission and the potentially impacted Public Water System(s) within <br />three (3) months of collecting the samples. In addition, the analytical results and surveyed sample locations shall be <br />submitted to the Commission in an electronic data deliverable format. <br />An emergency spill response program that includes employee training, safety, and maintenance provisions and current <br />contact information for downstream Public Water System(s) located within fifteen (15) stream miles of the DCPS <br />Operation, as well as the ability to notify any such downstream Public Water System(s) with intake(s) within fifteen (15) <br />stream miles downstream of the DCPS operations. In the event of a spill or release, the operator shall immediately <br />implement the emergency response procedures in the above - described emergency response program. If a spill or <br />release impacts or threatens to impact a Public Water System, the operator shall notify the affected or potentially affected <br />Public Water System(s) immediately following discovery of the release, and the spill or release shall be reported to the <br />Commission in accordance with Rule 906.b.(3), and to the Environmental Release /Incident Report Hotline (1- 877 -518- <br />5608) in accordance with Rule 906.b.(4). <br />Operator shall provide notification to potentially impacted Public Water Systems within fifteen (15) stream miles <br />downstream of the DCPS Operation within 30 days prior to commencement of new surface disturbing activities at the <br />site, including spud. <br />Date Run: 813112012 Doc [#400147973] Loc Name: Oxbow Mining LLC 1 Page 5 of 6 <br />