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June 15, 2018

Via Email and FedEx
Charles Ozaki
City & County Manager
City & County of Broomfield
One DesCombes Drive
Broomfield, CO 80020
Re:

Notice of Breach of October 24, 2017 Amended and Restated Oil and
Gas Operator Agreement between Extraction Oil & Gas, Inc.
(“Extraction”) and The City and County of Broomfield (the “City”)

Dear Mr. Ozaki:
The City and County of Broomfield (the “City”) has breached (i) the Amended and
Restated Operator Agreement, dated October 24, 2017, between the City and Extraction Oil &
Gas Inc. (the “Operator Agreement”), (ii) the Settlement Agreement, dated October 24, 2017,
between the City and Extraction (the “Settlement Agreement”) and (iii) the Surface Use
Agreement, dated October 24, 2017, between the City and Extraction (the “Surface Use
Agreement” and, together with the Operator Agreement and the Settlement Agreement, the
“Agreements”). The City, through its City Council and staff members, has ignored the clear
requirements of our extensively neg