K.P. KAUFFMAN COM.P&~, I N C.
WORLD TRADE CENTER
1675 BROADWAY, 28TH FLOOR
DENVER, COLORADO 80202-4628
TELEPHONE (303) 825 -4822
FACSIMILE (3 0 3 ) 825-4825
ww w.kpk .com
VIA USPS CERTIFIED MAIL­
RETURN RECEIPT REQUESTED
February 9, 20 I 0
Sunmarke Investments, LLC
5105 DTC Parkway, Suite 240
Greenwood Village, Colorado 80111
Attn: Gary Hunter, Manager
Re: Waiver of Rule 318A(a)(2), Greater Wattenberg Area Windows
Exception to Rule 318A(c)(2), Surface location
McCARTY #19-22-12
C-SW/4 Section 22, Township 4 North, Range 67 West
Weld County, Colorado_
Dear Mr. Hunter
K.P. Kauffman Company, lnc. (KPK) submitted a permit to the Colorado Oil and Gas Conservation Commission
(COGCC) to drill the above referenced McCarty 19-22-12 well (the "Well") on the property described above (the
"Property"). COGCC rule 318A(a)(2) provides that in the Greater Wattenberg Area (GWA), operators may utilize "GWA
windows" being a square with sides 800 feet in length, the center of which is the center of any governmental quarter
section ("SOO' window") to drill, twin, deepen, or recomplete a well. COGCC Rule 318A(a)(3) further provides that
"Absent a showing of good cause, which shan include the ex,istence of a surface use or other agreement with the surface
owner authorizing a surface well location outside of a GWA window, aU surface wellsites shall be located within a GWA
window." COGCC Rule 318A (c)(2) provides that when the operator is requesting a surface welt location greater than
fifty (50) feet from a well, the operator shall provide a consent to the exception signed by the surface owner on which the
well is proposed to be located in order for the Director to approve the well location administratively.
The Well location is greater than 50 feet from an existing weU (McCarty # I, API #05-123-10232). Pursuant to the
above-referenced rules, KPK requests that by signing below, you have read and understand COGCC Rules 318A(a)(2)
and 31SA(c)(2) and authorize the Well to be located at 1450' FSL, 1399' FWL, Township 4 North, Range 67 West, 61h
P.M. Please note that we are not moving in heavy equipment at this time, this letter is only for the purpose of re­
permitting the location under the new COGCC rules effective April 1, 2009.
This waiver is subjec to
the condition the McCar y #19-22-12
well shall be
an ttgg 100
f
f
cation of the
existing McCarty #1 well.