Boulder County

Comprehensive Drilling Plan

Surface Owner Meeting

Wednesday, June 27

© 2018 Crestone Peak Resources | 2

Contact Crestone Crestone Peak Resources – Quick Facts

• Top producer in the DJ Basin

• Formed in July 2016

• Our team of more than 200 Colorado energy professionals all have experience deeply rooted in DJ Basin operations

• 100 percent of employees live and work in Colorado

• We aim to be the region’s premier operator through efficient, safe and environmentally-responsible operations

(720) 410-8537

cdpboulder@crestonepr.com

www.crestonepeakresources.com

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• COGCC’s website at http://cogcc.state.co.us

o Comprehensive Drilling Plan (CDP) for land in Boulder County under “News & Notices”

▪ Final CDP Package, including maps

▪ Description and updated CDP process timeline

▪ Public comment portal

• Crestone’s website at www.crestonepeakresources.com

o Comprehensive Drilling Plan tab

▪ Tonight’s meeting materials

▪ Previous meeting materials and additional background

Additional CDP Information

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CDP Collaboration and Community Engagement

1300+: Comments received via COGCC public

comment portal

5: Number of surface owner community meetings

(4 telephone town hall + 1 in-person)

700: Number of surface owners and stakeholders

invited to each

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Path to Final CDP

By the Numbers Preliminary Draft 1 Final CDP

Number of potential oil and gas locations 6 3

Number of well pads 6 5

Number of wells 216 140

Potential locations off Highway 52 3 out of 6 3 out of 3

Size of CDP area 12 square miles 10 square miles

Third DraftFirst and Second Drafts Fourth Draft

FINAL CDP

Final CDP Proposed Locations

Preferred

Alternate

Location and Well Pad Planning:

• All locations are along the Hwy 52 corridor

• All locations exceed the COGCC’s 1,000’ buffer distance to the nearest building units

• All locations are greater than the required distances from all sensitive wildlife habitats

• All locations will utilize tankless production facilities and occupy significantly smaller footprints than traditional sites

Section 3 Section 35 Section 1

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Alternate Location in Section 36

• Section 1 is the “preferred” location and Crestone does not intend to utilize both sections, but requests approval of both locations for development pending unresolved floodway designation issues

• Due to potential re-designation of most of Section 1 as a floodway, and following additional alternatives analysis, Section 36 was selected as an “alternative” location

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Mitigating the temporary impacts of our operations

ODOR

✓ Utilize a variety of mitigation

measures, like chillers,

enclosed mud tanks and walls

to contain potential odors

NOISE

✓ Employ the most current

technology available (i.e.

sound mitigation walls)

✓ Ongoing noise monitoring

during operations

✓ Low-frequency noise levels will

not exceed 65 dBC as

measured from the nearest

Building Unit

✓ Production equipment could be

powered by electricity

TRAFFIC

✓ A Traffic Impact Study (TIS)

helps designate proposed haul

route and overweight haul route

✓ Utilization of the Hub helps

reduce truck traffic, dust and

noise

✓ The TIS addresses high-traffic

periods, allowing for limiting or

staggering of deliveries or other

activity

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Timeline and Next Steps

Planning and permitting (July 2018 – Dec. 2019)

Crestone will continue with the necessary permitting processes (including Boulder County)

Seismic studies and subsurface mapping (July 2018 – March 2019)

Crestone will begin the process of acquiring seismic permits and permissions within the CDP Area in mid-2018. Once

obtained and the seismic survey begins, the process will take approximately 30-60 days to complete the CDP area. Any

potential delays in the approval of the CDP will not impact the seismic study schedule or plan.

*If the Section 36 location is approved, it will track against the Section 1 timeline.

Well Pad# of

Wells 2018 2019 2020 2021 2022 2023 2024 2025

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Section 1*28

28

Section 328

28

Section 35 28

Construction

Drilling

Completions

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Projected Impact of Crestone’s Oil and Gas Operations in Boulder County

Proposed oil and gas locations

in sections 1, 3, 35 *section 36 alternative

$398,177,545projected total tax benefit

over 25-year project life*

*THK Associates, Inc. Fiscal Impact Analysis for Crestone Peak Resources, March 2018

5 proposed well sites

140 proposed wells (28 per site)

10 square mile CDP area

$97,967,703 Projected tax benefit

to Boulder County*

$50,639,207 Projected tax benefit

to Mountain View Fire

District*

$6,466,230 Projected tax benefit

to water districts*

$243,104,403 Projected tax benefit

to St. Vrain Valley

schools*

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Updated COGCC Timeline

June 20 - July 6

Written public comment accepted on Final CDP.

COGCC director evaluates Final CDP and

stakeholder input to determine whether the Final

CDP should be presented to Commission for

consideration.

July 19

If Final CDP is satisfactory to COGCC Staff, COGCC

Director will file a hearing application with

Commission requesting Commission acceptance of

the Final CDP.

September 17 - 18

If Director files an application, the CDP will be

docketed for the regularly scheduled Commission

Hearing.

To ask a question, please press

“zero” on your telephone key pad at

any time.

THANK YOU!