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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/07/2010 - FIRST READING OF ORDINANCE NO. 097, 2010, AUTHORIZ DATE: September 7, 2010 STAFF: John Stokes _ Daylan Figgs First Reading of Ordinance No. 097, 2010, Authorizing a Grazing Lease, Sublease and Residence Lease on Soapstone Prairie Natural Area. EXECUTIVE SUMMARY Soapstone Prairie Natural Area is currently leased to the Folsom Grazing Association; the existing lease will expire in December 2010. Last year City staff initiated a competitive Request for Proposals(RFP) process to solicit tenants for a 10-year grazing lease beginning in 2011. Through that competitive process,the Folsom Grazing Association was selected as the grazing tenant. Grazing management will be designed to manage for natural resources of highest conservation priority as outlined in the Soapstone Prairie Natural Area Management Plan. BACKGROUND / DISCUSSION In 2004, the City acquired a large portion of the Soapstone Prairie Natural Area(SPNA)from the Soapstone Grazing Association. As part of the purchase agreement, the City leased the property back to members of the association for grazing purposes through the end of 2005. After selling Soapstone, the grazing association members split into two grazing associations. Several members retained the name"Soapstone Grazing Association"and others formed the "Folsom Grazing Association". In 2005,City staff initiated a competitive Request for Proposals(RFP)process to select a tenant for a 3-year term (2006-2008), which resulted in the selection of the Folsom Grazing Association as the tenant. City Council subsequently approved Ordinance No. 160, 2005, authorizing the lease of the property. After the initial purchase in 2004, Natural Areas staff and outside experts conducted natural and cultural resource inventories to inform the development of the Soapstone Prairie Natural Area Management Plan(adopted 2007). The management plan identifies"conservation targets," or natural and cultural resources of highest conservation value. Many of the conservation targets and associated "nested" targets (species or systems that occur on the landscape and help provide more measurable goals than the broader conservation targets) are dependent upon or strongly influenced by continued grazing for their survival and success. SPNA is dominated by shortgrass prairie, a system that evolved with three primary influences or ecological drivers: grazing, climate and fire. Research demonstrates that moderate grazing provides rangeland health benefits at a variety of spatial scales; the plant, plant community and landscape level. Grazing increases productivity and diversity of grasslands,and can provide a mosaic of habitat types with patches of heavily grazed areas with sparse grass cover and lightly grazed areas with taller grasses. This diversity of habitat types is essential for species diversity, and many species use different grass structures for different periods in their life cycle(e.g., nesting,foraging,etc). For example, some species of grassland birds such as the mountain plover require very short grass or bare ground to nest upon. Similarly, rare plants such as the Colorado butterfly plant (Gaura neomexicana ssp. coloradensis), a federally threatened plant present in wetlands on-site, requires grazing to maintain open habitat surrounding plants for seed establishment. Historically, large ungulates such as bison provided the role of grazing in grassland systems such as SPNA. However, current ungulate densities are not sufficient to provide the same effects as historic grazers so domestic livestock are used as a substitute. As a result of the information gathered and management plan guidance, staff sought to continue grazing the property but also to significantly change the style of grazing to directly manage for success of the conservation targets. This led to a 2-year (2009 — 2010) extension of the grazing lease with the Folsom Grazing Association (authorized by Resolution 2008-116),with significant changes, including focusing cattle on the shortgrass habitat on the eastern side of the property, reducing the number of animals on the property, and reducing the number of separate herds. During the same period, Natural Areas staff has worked with a sheep producer under a separate Professional Service Agreement to provide weed control on the western side of SPNA, primarily targeting the invasive species Dalmatian toadflax. September 7, 2010 -2- ITEM 12 In the summer of2009,Natural Areas staff had conversations with the Land Conservation and Stewardship Board(see Attachment 3) and City Council (see Attachment 1) to discuss the proposed approach to grazing management at SPNA and staffs intention to advertise a 10-year grazing lease, and solicit feedback. At that time, the Land Conservation and Stewardship Board and City Council expressed support for staff's intended approach to grazing management. In the fall of 2009, Natural Areas and Purchasing staff initiated a competitive Request for Proposals (RFP) process to solicit grazing tenants. The RFP was widely advertised, and two formal pre-bid meetings were held with accompanying site visits, with 26 individuals representing 20 firms and organizations attending. Six firms ultimately submitted proposals. The subsequent selection process resulted in the selection of the Folsom Grazing Association as the tenants for the property. The Folsom Grazing Association consists of eight member-ranchers with ranching and/or livestock experience ranging from 33 to 70 years. Four members are based in Larimer County, three are based in Weld County, and one is based in southeast Wyoming less than two miles from the Colorado border. All conduct the majority of their business in northern Colorado. Members own or lease an additional 19,700+acres; leasing SPNA helps these ranchers remain in business and keep this additional land undeveloped. Natural Areas staff has worked with the Folsom Grazing Association over the past several years to adapt its grazing style to more effectively manage for the City's conservation targets on the property. In previous years members have participated in public programs at SPNA and have hosted volunteer riders to ride-along and help gather and move cattle from pasture to pasture. Lease terms A copy of the lease is on file at the City Clerk's office. Key features of the lease include: • Property: This lease covers all of Soapstone Prairie Natural Area (see Attachment 2). • Term: The lease is a one-year lease, with renewals for up to nine additional years (through 2020). • Rent: Grazing fees will be based on a sliding scale, where Folsom Grazing Association will pay $7.50 per animal unit month (AUM)for up to six hundred animal units, $9.00 per AUM for 601 to 700 animal units, and $10.68 per AUM for each additional animal unit over 700. An AUM is a standardized method for measuring animals which is used for agricultural purposes, and is equivalent to the amount of forage a cow and her unweaned calf consume over the course of a month. • Ranch headquarters house: The Folsom Grazing Association will have a member or employee occupy the ranch headquarters house. If the Folsom Grazing Association decides not to occupy the house, the Natural Areas Program may lease it to a third party. • Grazing plan: Natural Areas staff has developed a basic grazing approach which includes management strategies tailored to the City's conservation targets for the property. These include shorter grazing duration and longer rest periods,timing grazing forconservation target benefit,improved control of riparian and wetland areas, focusing grassland management on creating a habitat mosaic, and focusing foothill shrublands management on weed control. Natural Areas staff and the Folsom Grazing Association will cooperatively develop a grazing plan on an annual basis in order to adaptively manage for current conditions. • Sublease: The lease specifically requires the Folsom Grazing Association to enter into a sublease with a firm acceptable to the City for sheep and/or goat grazing in order to provide weed control. Having a sublease arrangement helps the City consolidate grazing operations. The City will establish the grazing plan for sheep/ goats on the property and retain control over these activities. • Bison: The Natural Areas Program continues to pursue the "conservation bison" idea, a partnership where the City would work in cooperation with public and private conservation groups aimed at the conservation of plains bison as a wildlife species, and a portion of SPNA may be used as a location for genetically pure bison to be located prior to translocation into a larger herd. The Folsom Grazing Association is aware of these efforts and the potential impacts on their lease. This grazing lease with Folsom Grazing Association will not preclude the Natural Areas Program from continuing to pursue a bison partnership or actually locating bison on SPNA if the partnership came to fruition. FINANCIAL / ECONOMIC IMPACTS This lease will generate revenue on an annual basis; grazing fees will be based on a sliding scale, where Folsom Grazing Association will pay$7.50 per animal unit month (AUM) for up to six hundred animal units, $9.00 per AUM September 7, 2010 -3- ITEM 12 for 601 to 700 animal units, and $10.68 for each additional animal unit over 700. The annual number of AUMs will depend on factors such as precipitation, forage conditions, water availability, status of conservation targets, etc. However, the City can expect to generate somewhere in the range of$20,000 to$40,000 per year. This revenue will be placed into the Natural Areas Program fund. Grazing lease rates vary depending on the landowner, number of acres and animal units included in the lease, forage quality and quantity, market demand, etc. Rates range from $1.35/AUM for federal land rates (Bureau of Land Management and Forest Service 2010 rate), to $10.78/AUM for Colorado State Land Board leases (2010 rate), and $16.37/AUM for private grazing leases in northeast Colorado (average 2007 figures). The economic health of Fort Collins and northern Larimer County will be positively impacted by this lease arrangement. Folsom Grazing Association members are local ranchers who often conduct business in Fort Collins and circulate revenue to other agricultural businesses(e.g.,feed suppliers,farm supply stores,equipment dealers,mechanics,etc). Providing summer pasture for their cattle at SPNA helps them to maintain solvency, stay in business, and conserve their farms and ranches as working landscapes. ENVIRONMENTAL IMPACTS Authorizing this grazing lease will ensure that Natural Areas staff is able to effectively manage for conservation targets outlined in the Soapstone Prairie Natural Area Management Plan. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its August 11, 2010, regular meeting, the Land Conservation and Stewardship Board unanimously voted to recommend adoption of the ordinance. An excerpt of the meeting minutes is included as Attachment 3. PUBLIC OUTREACH Prior to adoption of the Soapstone Prairie Natural Area Management Plan in 2007,which guides grazing management of the property, extensive public outreach was conducted including two open houses, field trips with visitors who completed survey forms, and an on-line survey. Prior to advertising the RFP, Natural Areas staff had public conversations with the Land Conservation and Stewardship Board(August 12,2009 regular meeting)and City Council to discuss the proposed approach to grazing management at SPNA and staffs intention to advertise a 10-year grazing lease. The RFP was publicly available on the City's purchasing website and office at 215 North Mason. It was mailed to parties who had previously expressed interest in grazing leases on Natural Areas properties in the area. It was widely advertised in outlets such as the North Forty News, the Wellington, the Fence Post, High Country News, and the National Bison Association newsletter. Copies were posted at visible locations such as the Centennial Sale Barn. The RFP was also announced at a meeting of the Laramie Foothills Advisory Group. Two pre-bid meetings were held with interested parties in November 2009. ATTACHMENTS 1. August 25, 2009 Council work session summary 2. Map of leased property 3. Land Conservation and Stewardship Board minutes excerpt, August 12, 2009 and August 11, 2010 ATTACHMENT 1 CityQ'f Natural Resources Department & ®�IFf�l+ 215 BoxWh St PO Box 5[30 FM 070.221.66 0 80522-05a0 9)D.221.0000 FAX 070,224.6177 »vnv.Tcgov.com MEMORANDUM Date: August 26, 2009 To: Mayor and City Councilmembers Thru: Darin Aaebeny,City i-tanager Marty Heffernan, Executive Director CPRE ei,r 7q From: John Stokes, Natural Resources Directo6� Daylan Figs= ,Senior Environmental Planner,Natural Auras 1'rngram � := t Erica Saunders,Environmental Planner,Natural.Areas Program ` RE: August 25,2009 Work Session Summary•—Soapstone Grazing Management This work session focused on grazing management for Soapstone Prairie Natural Area. Grazing strategies are aimed at managing for conservation targets, naaual and cultural resources of the highest conservation value,identified in the Soapstone prairie plan. At the end of 2010 the existing lese with Folsom Grazing Association will expire. Staff intends to advertise a Request for Proposals(RFP)in fall 2009 to solicit tenants to graze the property beginning in 2011. Guidance: Staff sought-guidance from Council regarding the intended approach to grazing management prior to advertising the RFP. Council expressed'support for staffs approach to grazing management. . Key discussion points include: a Risoir. Several Councilmembers expressed support for bison grazing on the property and interest in conservation of genetically pure bison. Although Council members horned Fora timeline fnr implementation,staff explained that the timeline is dependent on a bison producer or owner to operate on the property as staff does not have the ability to own or manage bison. V Sheep: Approximately 1,000 sheep are being grazed at Soapstone in the mountain mahogany shrublands for Dalmatian toadllax control. If bison were to be grazed on the property,sheep and bison would need to be temporally and spatially selmraled as sheep can transmit a disease to bison. Y Pariuerships: Partnersbips developed for research and monitoring projects include a partnership with Colorado State University's laboratory of Public Archaeology and Dr.Jason LaBelle to conduct archaeological surveys; Rocky Mountain Bird Observatory to conduct avian surveys; American Fisheries Society at Colorado State University to conduct fish and amphibian surveys;Colorado Natural Heritage Program to conduct butterfly and fish surveys; and Natural Resources Conservation Service to conduct vegetation monitoring. a Fire: Although it is khnown to be a key ecological process,the role of fire is less understood in shortgrass systems than in lallgrass systems. Staff will pursue using prescribed lire as a finure managchucut tool. a Riparian and wetland areas:Steps that are being taken to protect riparian areas from overgrazing impacts include longer rest phases are being incorporated and high value areas are being fenced. Next steps: Staff will advertise a Request for Proposals soliciting a tenant to graze the property. The RFP will emphasize that the property is being grazed in order to help the Natural Areas Program achieve ecological objectives and to enhance the conservation status of the.property. Oneb a tenant is selected and a lease is negotiated,slafTwill bring the lease to Council on their consent agenda. where renewal is a way of life Soapstone Prairie Natural Area : Leased Property ATTACHMENT 2 WYOMING COLORADO ■ Ranch house O - - � rn � 0 Q O COC/ of L NTyROq o O2j O ry z W COUNTY ROAD 84 0 0 . 5 1 1 . 5 2 - Soapstone Prairie Natural Area (all property leased ) ■a Miles Trailheads/ Parking areas Roads City of County boundaries e Ranch house Fit Collins Natural N Areas Program) ATTACHMENT Page 1 of 1 Land Conservation & Stewardship Board Wednesday, August 11, 2010 Excerpt: Soapstone Grazing Lease • Figgs: Soapstone Prairie Natural Area is currently leased to the Folsom Grazing Association; the existing lease will expire in December 2010. Last year City staff initiated a competitive Request for Proposals (RFP)process to solicit tenants for a 10- year grazing lease beginning in 2011. Through that competitive process, the Folsom Grazing Association was again selected as the grazing tenant. However, suggested is a lease of the ranch headquarters house to a third partysif Folsom Grazing Association ever decides not to occupy it. Also, because of the goals, o t in the Grazing Plan authorizing this grazing lease will ensure that NaturalAreas staff is able to effectively manage for conservation targets outlined in the Soapstone Prairie Natural Area Management Plan. �y Figgs showed the Board a PowerPoint presentation,that included the following: o Seeking Recommendation to Council = o Laramie Foothills Mountains to Plains Projects o Why Graze? o Distribution of Conservation Targets V_= s o Role of Grazing in Grasslands f O'� � o Grazing Contract Background o Request for Proposals (RFP)�Process o Folsom Grazing Association MA -` r o Grazin gLease ' A y : o Grazing-ManagemeiffiStrategies � o Grazing Fees og-Ranch Headquarters Houses �. o Sheep Grazmg -K • OKnowlton. What.iAthe behefitt f the Grazing Association doing a sub-lease as opposed to the City? • Figgs The big benefitl what the Tiny has staff time. Right now we have established a professional service agre m eent with the sheep producers, but we rely on the Grazing Association-to"" ssociatio to,provide tiskChings like water management and on-site management help, and we reimburse the .fors Creating a sub-lease keeps them more involved. • Knowlton: Are the1fees1_ rket linked? • Figgs: Market ratesare=difficult to come to, this is about mid-range. Knowlton motioned that the Land Conservation and Stewardship Board recommends that City Council approve an ordinance authorizing: 1) a grazing lease on Soapstone Prairie Natural Area including the ranch headquarters house to the Folsom Grazing Association for up to a 10 year period; 2) a lease of the ranch headquarters house to third party if Folsom Grazing Association ever decides not to use it; and 3) the Folsom grazing Association to grant a partial sub-lease of the Soapstone Prairie Natural Area grazing lease to a sheep or goat producer acceptable to Natural Areas Program staff to perform weed control activities. Stanley second. It was unanimously approved. Land Conservation &Stewardship Board Wednesday, August 12, 2009, Page 4 of 6 may be in the position to reintroduce the Black-footed Ferret on th Prairie Natural Area property. • Gaughan: Will any part of that be with very Center and Museum; or is it all at Soapstone? • Stokes: It is a three ye gram with the US Fish and Wildlife Service, and the Discovery C Museum will be under construction and perhaps completed by 2 we can continue doing the Black-foot Ferrate program it would be a ce program for the Museum. Soapstone Grazing Update • Figgs: About a year ago we discussed the Soapstone Grazing Plan and the changes we wanted to make in our Grazing Plan moving forward. Grazing at Soapstone is driven by the Management Plan. Figgs showed the Board a presentation of the Soapstone Prairie Natural Area Grazing Management. The presentation mentioned the following: • Management Plan Implementation • Conservation Targets and Nested Targets • Ecological Inventory and Monitoring • Laramie Foothills Mountains to Plains Project • Cross Boundary Management • Role of Grazing in Grassland Health • Grassland Wildlife Needs Grazing • Wildlife and Livestock Grazers • Grazing—Potential Negative Effects • Targets—Relationship to Grazing • Wetland/Riparian Areas • Foothills/Shrublands System • Grazing Plan • Lease/Request for Proposals • Bison Update Figgs: In summary, grazing is a necessary tool to manage for conservation targets. There are different types of grazing for different targets and Request for Proposal (RFP) will seek a tenant to assist in management. • DeBell: When you have prairie dogs in a large area,do they behave similar to the way they would in a small area, eradicating the vegetation in that area? • Figgs: It's a much different pattern. There was a colony on 4,000 acres and that area changed over time and when the prairie dogs plagued-out the area completely recovered, in part, due to the surrounding vegetation. • Haines: How many heads of cattle are at Soapstone? • Figgs: 500 heads of cows,which are rotated. • Haines: If a section were used for Bison grazing do you need a fence? • Figgs: Yes. The fences we talk about are five or six feet tall, and very expensive to build. • Stokes: This will go to the Council Work Session on August 25`h, and we wanted to present this to the Board so that you may address any concerns. Land Conservation& Stewardship Board Wednesday, August 12, 2009 Page 5 of 6 • Haines: Do you ever get questions from the public as to why there are cows grazing at Soapstone? • Figgs: 1 have not received any negative feedback as to why there are cows at Soapstone. Our Education Team is building education programs addressing grazing issues. • Gaughan: One thing to pay attention to when the RFP's come in is that fencing is expensive, and if you are not doing an ecological fencing you really need a dedicated rancher or natural areas staff moving cows around because generally cows are lazy and will graze riparian areas, • Gaughan: When you.dust around swift fox, are there buffers that you use around dens. • Figgs: We generally know where swift fox dens are located, and we also know that they can change location so we try to avoid those areas. Ikkproval of Draft Mountain Vista memo DeBell: This memo was drafted via e-mail; we simply need a moti to approve e memo. Knowlton oved to accept the Mountain Vista memo as written, nesting that City Council con ' er four recommendations to enhance the plan's � etions related to natural areas co rvation. Grooms second. It was unanimo approved. New Business: Add Updates/Discussion Announcements: • Gaughan: I'm on the bike sub-co e of the Transportation Board and they have asked me to highlight the top items out of the bike plan to recommend to Council. Would you like me t end se to the Board? • DeBell: Yes. • Knowlton: I would like to r est that this Boa agenda clearly state whether an item is for action or disc ion, and could the acti items be listed first in case a Board member needs t cave early. • DeBell: I feel that w hould let staff present first as mu as possible, so that they do not have t it through the meeting. • Gaughan: Reg mg the Federal land along the foothills near orte, the signage needs to be r ised. Who can we get to look at this area and con ct someone to revise the age? • Stokes: a manage everything on the East side of the road. You can out with Jim ler, Public Improvements Crew manager; he knows the history o e area, w ' will be helpful in improving the signage. Adjo n Th eeting adjourned at 8:30 p.m. ORDINANCE NO. 097, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING A GRAZING LEASE, SUBLEASE AND RESIDENCE LEASE ON SOAPSTONE PRAIRIE NATURAL AREA WHEREAS,the City is the owner of approximately 21,900 acres of land known as Soapstone Prairie Natural Area (the "City Property") in northern Larimer County, Colorado; and WHEREAS, in 2005, in order to continue grazing as a habitat management tool while the management plan for the City Property was being completed, City staff proposed leasing portions of the City Property to a local grazing association; and WHEREAS, on December 20, 2005, the City Council approved Ordinance No. 160, 2005, authorizing a grazing lease with Folsom Grazing Association ("Folsom") on portions of the City property from January 2006 through December, 2008 (the "2006 Lease"); and WHEREAS, on December 2, 2008, the City Council approved Resolution 2008-116 extending the 2006 Lease through December,2010 and placing new limits on the number of animals and the area that could be grazed; and WHEREAS,in 2009 City staff initiated a competitive process to select a tenant for a new ten- year grazing lease beginning in 2011,and through that competitive process Folsom was selected as the grazing tenant; and WHEREAS, a copy of a proposed grazing lease agreement, dated September 7, 2010, (the "Grazing Lease") is on file and available for review in the Office of the City Clerk; and WHEREAS,the portion of the City Property that would be the subject of the Grazing Lease is described on Exhibit "A", attached and incorporated herein by this reference (the "Lease Property"); and WHEREAS, staff anticipates that the proposed Grazing Lease would generate an annual revenue in the range of$20,000 to$40,000 depending on how many animals are grazed and for how long each year; and; WHEREAS, as a condition of the Grazing Lease, Folsom would be required to enter into a sublease with a firm acceptable to the City for sheep and/or goat grazing to control weeds; and WHEREAS, the City Property includes a residence (the "Ranch House") that would be available to Folsom, at no additional rent, for the purpose of housing an employee and, if Folsom chooses not to use the Ranch House,City staff would try to find a third party tenant to rent the Ranch House; and WHEREAS,pursuant to Section 23-111(a)of the City Code,the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned in the name of the City, provided that the City Council first finds,by Ordinance,that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the proposed lease of the Lease Property to Folsom Grazing Association and the lease of the Ranch House are in the best interests of the City. Section 2. That the City Manager is hereby authorized to enter into a lease agreement with Folsom Grazing Association in substantially the form of the Grazing Lease that is on file in the office of the City Clerk,together with such additional terms and conditions as the City Manager, in consultation with the City Attorney,determines to be necessary or appropriate to protect the interests of the City or effectuate the purposes of this Ordinance, including but not limited to any necessary changes to the legal description of the Lease Property, as long as such changes do not materially increase the size or change the character of the Lease Property. Section 3. That as part of the Grazing Lease, Folsom Grazing Association is hereby authorized to enter into a sublease for sheep and/or goat grazing on portions of the Lease Property on terms and conditions that are acceptable to the City and using a form of sublease approved by the City. Section 4. That if Folsom Grazing Association chooses not to use the Ranch House, the City Manager is hereby authorized to enter into a separate lease agreement for the Ranch House with a third party, on such terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City or effectuate the purposes of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 7th day of September, A.D. 2010, and to be presented for final passage on the 21 st day of September, A.D. 2010. Mayor ATTEST: City Clerk -2- Passed and adopted on final reading on the 21 st day of September, A.D. 2010. Mayor ATTEST: City Clerk -3- EXHIBIT "A" Legal Description of Lease Property on Soapstone Prairie Natural Area Township 11 North,Range 68 West of the 6th P.M.,Larimer County,CO Section 4: ALL Section 5: ALL Section 6: ALL Section 19: ALL Township 12 North, Range 68 West of the 6th P.M., Larimer County, CO Section 19: All in State of Colorado Section 20: All in State of Colorado Section 21: All in State of Colorado Section 28: ALL Section 29: ALL Section 30: ALL Section 31: ALL Section 32: ALL Section 33: ALL Township 11 North,Range 69 West of the 6th P.M.,Latimer Count Section 1: ALL Section 2: ALL Section 3: ALL Section 4: SW4 of NW4 and S2,NE 1/4 Section 10: ALL Section 11: SW '/4, North %2 of SE '/4, south %2 of NW '/4, West '/2 of NE '/4 , A PORTION OF THE E 1/2 OF THE NE 1/4 BEING MORE PARTICULARLY DESCRIBED AS: BEGINNING AT THE SE CORNER OF THE E 1/2 OF THE NE 1/4 OF SAID SECTION 11; THENCE N 010 13' 41" W, ALONG THE EAST LINE OF SECTION 11, A DISTANCE OF 485.68 FEET TO A POINT; THENCE N 540 15' 46" W, A DISTANCE OF 211.52 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT, THE RADIUS OF SAID CURVE BEING 470.00 FEET, THE CENTRAL ANGLE OF SAID CURVE BEING 220 06' 28", THE CHORD OF SAID CURVE BEARS N 430 12' 32" W, A DISTANCE OF 180.23 FEET, THENCE ALONG THE ARC OF SAID CURVE A DISTANCE OF 181.35 FEET TO A POINT; THENCE N 320 09' 18" W, A DISTANCE OF 262.96 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, THE RADIUS OF SAID CURVE BEING 530.00 FEET, THE CENTRAL ANGLE OF SAID CURVE BEING 120 44' 34", THE CHORD OF SAID CURVE BEARS N 380 31' 35" W A DISTANCE OF 117.63 FEET, THENCE ALONG THE ARC OF SAID CURVE A DISTANCE OF 117.87 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THE RADIUS OF SAID CURVE BEING 470.00 FEET, THE CENTRAL ANGLE OF SAID CURVE BEING 430 30' 56", THE CHORD OF SAID CURVE BEARS N 230 08' 24" W, A DISTANCE OF 348.44 FEET, THENCE ALONG THE ARC OF SAID CURVE A DISTANCE OF 356.96 FEET TO A POINT; THENCE N 01° 22' 56" W, A DISTANCE OF 891.51 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, THE RADIUS OF SAID Page 1 of 2 CURVE, BEING 530.00 FEET, THE CENTRAL ANGLE OF SAID CURVE BEING 110 05' 14", THE CHORD OF SAID CURVE BEARS N 060 55' 33" W A DISTANCE OF 102.40 FEET, THENCE ALONG THE ARC OF SAID CURVE A DISTANCE OF 102.56 FEET TO A POINT; THENCE N 12' 28' 10" W, A DISANCE OF 270.73 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, THE RADIUS OF SAID CURVE BEING 530.00 FEET, THE CENTRAL ANGLE OF SAID CURVE BEING 040 44' 56% THE CHORD OF SAID CURVE BEARS N 140 50' 38" W A DISTANCE OF 43.92 FEET, THENCE ALONG THE ARC OF SAID CURVE A DISTANCE OF 43.93 FEET TO A POINT ON THE NORTH LINE OF THE E 1/2 OF THE NE 1/4 OF SECTION 11; THENCE WESTERLY ALONG SAID NORTH LINE 618 FEET, MORE OR LESS, TO THE NW CORNER OF THE E 1/2 OF THE NE 1/4 OF SAID SECTION 11; THENCE SOUTHERLY ALONG THE WEST LINE OF THE E 1/2 OF THE NE 1/4 OF SAID SECTION 11, 2676 FEET, MORE OR LESS, TO THE SW CORNER OF THE E 1/2 OF THE NE 1/4 OF SAID SECTION 11; THENCE EASTERLY ALONG THE SOUTH LINE OF THE E 1/2 OF THE NE 1/4 OF SAID SECTION I I, 1320 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING. Section 13: NE '/4, SE 1/4, SW 1/4, West %z of NW 1/4 Section 14: NW '/4. NE '/4, SEA Section 15: NE '/4,North '/4 of NW '/4 Section 24: East ''/z of NW 1/4, West ''/z of NE 1/4 Township 12 North, Range 69 West of the 6th P.M., Larimer County, CO Section 20: All in State of Colorado Section 21: All in State of Colorado Section 22: All in State of Colorado Section 23: All in State of Colorado Section 24: All in State of Colorado Section 25: ALL Section 26: ALL Section 27: ALL Section 28: ALL Section 29: ALL Section 32: ALL Section 33: ALL Section 34: ALL Section 35: ALL Section 36: ALL Page 2 of 2