1. BBC Research & Consulting 3773 Cherry Creek North Drive, # 850 Denver, Colorado 80209 800-748-3222 www.bbcresearch.com December Committee Meeting Progress Report Garfield County Land Issues and Solutions Study December 1, 2005

2. 1 Land Use Issues and Solutions Committee— Summary of November 3, 2005 Meeting Reviewed study guide (work plan) Discussed initial findings, issues, challenges, direction Identified new contacts for data collection and interviews Set schedule and objectives for six month study

3. 2 Land Issues and Solutions Study, November Achievements Pursued two areas of focus:  Analysis of land valuation data  Investigations into best management practices Continued site visits, interviews, data collection Attended citizens’ “best practices” meeting (Grand Valley Citizens’ Alliance, November 16) Interviewed Colorado Oil and Gas Conservation Commission (COGCC) about data availability and data structure for gas wells and gas drilling Obtained COGCC data

4. 3 Land Issues and Solutions Study, November Achievements, cont. Merged COGCC data with County Assessor's data to determine extent and location of affected properties Produced preliminary description of growth trends by area, sales volume, appreciation, etc. Identified residential properties with a gas well present or on adjacent properties Began process of analyzing sales and assessed value as it relates to property amenities (e.g., views and water availability) and drilling activity Began process of quantifying land values based on critical value determinants, e.g., location, views, access, amenities, water, etc.

5. 4 Data Analysis – Example of Building Data Output Number of Dwellings Constructed by Year

6. 5 Example of Assessor’s Residential Value Data Note: Does not include raw land. 198719891991199319951997199920012003 $0 $50 $100 $150 $200 $250 $300 $s in Millions Year 2004 Total Value of Residential Sales for Unincorporated Garfield County

7. 6 Example of Assessor’s Sales Volume Data Number of House Sales in Unincorporated County

8. 7 Next Steps—Land Issues and Solutions Study Land Value Data Analysis Complete data collection, modeling experimentation and analysis Complete analysis of growth trends, sales volume trends and property appreciation Develop statistical model of land and property valuation Analyze sets of comparable properties where primary difference is presence of gas activity Best Practices—Gas Well Drilling and Management Process Expand list of examples Develop implementation strategies Review with committee and industry representatives Presentation: Thursday, January 5 th, 2006: Land Issues & Socioeconomic Committees