Antero Resources Battlement Mesa Natural Gas Development Plan (TPD0908032)

Battlement Mesa Land Use Master Plan

Surface Use Agreements in Battlement Mesa

• Exxon agreement dated December 12, 1989
  • Executed as a condition of Battlement Mesa PUD purchase
  • Will always be effective (superseded by active SUAs)
• Barrett Resources agreement dated August 6, 1990
  • Entered into as a result of well density application to COGCC
  • Only binds Williams Production (successor to Barrett)
• Antero/Battlement Mesa Partners 2009 agreement
  • Comprehensive amendment to Exxon agreement
  • Exxon (now ExxonMobil) is a party to agreement
  • Binds Antero and Battlement Mesa Partners; ExxonMobil in part

ExxonMobil SUA – Dated December 12, 1989

• Executed as a condition of Battlement Mesa PUD purchase
• Required execution of formal SUA prior to mineral development actions
• Identified 16 well pads
  • 15 well pads inside PUD
  • 1 well pad outside PUD
• Locations were “general”; Battlement Mesa Partners had to accommodate changes
• Required alternate drill sites if conflicts with surface development
• Exxon was not obligated to pay for well pads

Drill Site Plan under Exxon 1989 SUA – 16 well pads

Barrett Resources SUA – August 6, 1990

–        Result of a protest by Battlement Mesa Partners to well density application to the COGCC

• Made subject to Exxon SUA dated December 12, 1989
• Provides for additional operation restrictions to Exxon SUA

• • Minimum well setback of 200’ to existing structures
  • Contemplated open pits
  • BMP to be provided a copy of special use permit with county
  • Contains numerous other restrictive provisions
• Binds ONLY Williams Production

Antero – Battlement Mesa Partners 2008 Agreement

• Dated effective January 15, 2009
• Fully executed on April 14, 2009
• Objective was to minimize disruption to community related to natural gas development
• Addresses key concerns (safety, noise, odor, visual, light, dust)
• Defines access routes and pipeline easements
• Pad-specific considerations

Antero – Battlement Mesa Partners SUA

Wellsite Locations

• 11 locations (10 drill locations, 1 water handling facility location)
• All locations are pre-surveyed (slide 11)
• Pad-specific mitigation measures
• New pad access roads
• The covered water handling facility located at far southeast edge of the PUD

Access Roads

• 20’ wide; gated
• Clean up and dust suppression

Pipelines

• Easements: 25’ permanent; 50’ construction
• At least 48” deep (greater in areas due to infrastructure)
• Complete pipeline segment to each pad upon construction

Antero – Battlement Mesa Partners SUA

Antero – Battlement Mesa Partners SUA

Example of Survey Work – conducted for all locations

Antero/BMC 2008 Agreement

SAFETY

• Long-term development provides for buried water lines to minimize truck traffic
• Emergency Response Plan
• Spill prevention and counter measure control plan
• No bulk storage of hazardous materials
• How to communicate
  • Residents should never approach a hazardous situation
  • If feasible and safe – call number posted on wellsite signage
  • Call 911

Antero – Battlement Mesa Partners SUA

NOISE MITIGATION

• No centralized compression in PUD
• Any wellhead compression housed, with high level of noise suppression equipment
• Hospital-grade mufflers on high noise output machinery
• Consideration of electric line power for drilling operations

Antero – Battlement Mesa Partners SUA

ODOR MITIGATION

• “F” Pad as a centralized water handling facility (SE corner of PUD)
• Lined and covered
• VOC combustors for production tanks

Antero – Battlement Mesa Partners SUA

VISUAL MITIGATION

• DESIGNWORKSHOP landscaping design on 4 critical pads
• Berms and trees to shield pads and pad facilities from view
• Pursue implementation prior to drilling where feasible
• Antero responsible for maintaining landscaping
• Noxious weed management plan
• Rig shrouded on 3 sides

Antero – Battlement Mesa Partners SUA

LIGHT MITIGATION

• Pad-specific considerations
• Rig oriented to direct light away from nearby residents
• Low density sodium lighting
• Lights directed downward
• Rig shrouded on 3 sides
• Safety will govern in all cases

Antero – Battlement Mesa Partners SUA

DUST MITIGATION

• Soiltac and and/or liquid dust suppressants
• Access roads and pads graveled
• Long-term development provides for buried water lines to minimize truck traffic

Antero – Battlement Mesa Partners SUA

OTHER

• Annual meetings with HOA to review upcoming year’s activities
• Insurance requirements for Antero
• Hours of operation
  • Limited for routine operations
  • No restrictions for drilling and completion
• Emergency communications
• Long-term plans provide for buried water lines and a water handling facility