Tract 2; TRMS2993

Purchase price includes the lease bonus and 1st year rental and buyer's premium. Buyer will be responsible for paying rental payments for years 2 through 5.

Data represented on these maps is for REFERENCE USE ONLY and is not suitable for legal, engineering, or surveying purposes. Neither Colorado nor EnergyNet.com shall be liable for any direct, indirect or consequential damages to any party arising out of or in connection with the use of data on these maps.

There is no assurance that there is any potential for production on any tract offered for leasing by the State Board of Land Commissioners.

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Lease Royalty Rate Information Colorado State Land Board oil and gas leases will be initially offered at a 20% royalty rate. If a lease does not sell at auction, it will be available at the next subsequent auction at a 18.75% royalty rate. If a tract is unsold at the 18.75% rate, it will be placed back into the State Land Board inventory and can be nominated for future auctions starting at the 20% royalty rate. For questions about this process please contact Catie Stitt at 303-866-3454 ext. 3326.

• 1. OG STIP 1- JOINT ESTATE WITH BIOLOGICAL ISSUES: Lease contains Colorado Parks & Wildlife (CPW) mapped High Priority Habitat (HPH) and/or occurrences of Federally-listed Endangered, Threatened, or Candidate wildlife or plant species as mapped by Colorado Natural Heritage Program (CNHP). Prior to surface access for operations and in connection with any Location Assessment for oil and gas operations, or the submittal of an Application for Permit to Drill (APD) with the Colorado Oil and Gas Conservation Commission (OGCC), Lessee shall consult with and obtain approval of the Lessor's District Manager, or his designee, for operations, including without limitation, exploration activities, well siting and access, and facilities locations. In connection therewith, Lessee shall consult with CPW and CNHP representatives regarding appropriate design measures and best management practices (BMPs) to avoid and minimize adverse impacts to biological resources, species, and habitats. Lessor's conservation mandate may require Lessee's compliance with site specific measures to address CPW and CNHP concerns relating to the siting of facilities and the implementation of BMPs to avoid, minimize, and mitigate adverse impacts. Site specific requirements may include, but are not limited to: 1) restricted or prohibited surface occupancy, 2) noise limitations or mitigation measures, 3) seasonal operations restrictions, 4) biological resource mapping, 5) ground or surface water testing, 6) air quality testing and 7) adoption of a comprehensive soil management plan. Lessor does not waive any OGCC consultation requirements with the surface owner, and Lessee shall not seek a variance to any required consultation without the advance written approval of the Lessor. Without excluding other penalties or remedies available under this Lease or as provided by law, Lessor shall impose penalties, subject to the applicable Lease notice and cure rights, including Lease cancellation and fines of up to $10,000 per day, for any violation of this special stipulation or the resulting BMPs, in whole or in part, arising directly or indirectly from the use, occupation or control of the Leased Premises by Lessee, Lessee's contractor or operator under this Lease. If Lessor determines any oil and gas operations pose a risk of immediate damage to public health, safety or welfare Lessor may order the immediate suspension of operations to investigate and remedy the issues.
• B.1 HISTORICAL, PREHISTORICAL AND ARCHAEOLOGICAL RESOURCES STIPULATION (FEB, MAY, AUG 2023; APR 2024) This Stipulation shall replace in its entirety Paragraph 40(j) of the Lease. Under no circumstances may any person injure, destroy, disturb, mar, appropriate, collect, remove, alter, or excavate any historical, prehistorical or archaeological site or resource (collectively, "cultural resources") on state lands. Discovery or indication of cultural resources shall be immediately brought to the attention of the Lessor and the State Archaeologist. Lessee shall comply with the requirements of C.R.S. SS 24-80-401 through 411, as the same may be amended from time to time. Prior to any surface disturbance or before submitting an Application for a Permit to Drill ("APD'') or a spacing application, Lessee shall arrange for a Class III archaeological survey of all sites subject to surface development. The surveyor shall provide the completed survey, including site management recommendations, to Lessor and the Office of Archaeology and Historical Preservation ("OAHP"). If the Class III survey or OAHP identifies any cultural resources on the Leased Lands, Lessor shall consult with OAHP and determine whether any specific site management activities will be required. Lessor, in its sole and absolute discretion, may impose additional requirements, conditions, restrictions, or stipulations under this Lease to protect or preserve cultural resources. Lessee acknowledges that Lessor is under no obligation to refund any bonus payment, rental or fee paid under this Lease.
• C. BURROWING OWL ACTIVE AND POTENTIAL NEST SITES STIPULATION: This tract potentially contains a burrowing owl nest site. Lessee must conduct a pre-construction survey to identify burrowing owl nest sites. If a burrowing owl nest site is identified, Lessee shall consult with the State Land Board Staff regarding their results prior to drilling operations.
• D. SWIFT FOX POTENTIAL DENNING HABITAT STIPULATION: Prior to drilling operations, Lessee must conduct a Swift Fox survey for active den sites. Lessee shall consult with the State Land Board regarding their results prior to drilling operations.
• E. MOUNTAIN PLOVER POTENTIAL NEST SITES STIPULATION: If initial surface disturbance is planned between April 1 - August 15, Lessee must conduct a pre-construction survey for Mountain Plover. Lessee shall consult with the State Land Board regarding their results prior to drilling operations.
• M.1.a LESSER PRAIRIE-CHICKEN CONNECTIVITY ZONES AND ESTIMATED OCCUPIED RANGE: This lease falls within mapped Lesser Prairie-Chicken Connectivity Zones and Estimated Occupied Range and is subject to the State Land Board's Stewardship Action Plan for the Lesser Prairie Chicken. A lek survey will be required if the tract has not been surveyed within the previous five years, and if leks are identified, the lek stipulations outlined in the Stewardship Action Plan will be applied, which could require No Surface Occupancy (NSO). If no leks are identified, habitat recommendations as detailed in the Stewardship Action Plan will be required. Lessee shall consult with the State Land Board prior to APD or surface disturbance, whichever occurs first, to review survey results and to discuss best management practices which include, but are not limited to: (a)surface density limitation of 2 pads per 640 acres; (b) less than 1.5 linear mile of routes per 640 acres; (c) structure design that limits perch locations for raptors; (d) closed-loop drilling, no reserve pits; (e) disturbed ground must be reclaimed and restored with LPC habitat considerations in mind, including the use of native seed mixes developed through consultation with CPW and NRCS; and potential habitat mitigation requirements.

Any Colorado State Land Board lease obtained at the April 2024 Lease Auction will be issued electronically via DocuSign for signature. If you have any questions on this process, please contact Sherry Lee at 303-866-3454 x 3322 or sherry.lee@state.co.us.

The Colorado State Land Board forms associated with Oil and Gas leasing may be found here: Colorado State Land Board Oil and Gas Lease Form.

After all auctions have closed, the successful bidder will be notified via email with closing instructions, including total amount due.

Payment must be made within two business days.

A 2% Buyer Premium, calculated as 2% of the total bonus plus rental, will be added to the cost of this lease.

Colorado State Land Board
Christel Koranda, Minerals Director
Office (303) 866-3454 ext 3321
Email Christel.Koranda@state.co.us

Catie Stitt, Oil and Gas Specialist
Office (303) 866-3454 ext 3326
Email Catie.Stitt@state.co.us

EnergyNet
Government Resources
Office (877) 351-4488
Email government@energynet.com