2015-12-09_PERMIT FILE - M2015030

• Permit No: M2015030
• IBM Index Class Name: PERMIT FILE
• Doc Date: 12/9/2015
• Doc Name: Structure Agreements
• From: Asphalt Specialties
• To: DRMS
• Email Name: ECS
• Media Type: D
• Archive: No

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co/ 3591169 11/21/2008 02:18P Weld County, CO
1 of 22 R 111.00 0 0.00 Steve Moreno Clerk & Recorder
SURFACE USE AGREEMENT
This Surface Use Agreement ("Agreement") is dated and made effective
this day of October, 2008, and is between Kerr-McGee Oil & Gas Onshore LP
("KMG") with an address of 1099 18th St., Suite 1800, Denver, Colorado 80202, and Asphalt
Specialties Co., Inc. ("ASCI") with an address of 10100 Dallas Street, Henderson, Colorado
80640. ASCI and KMG are sometimes jointly referred to herein as the "Parties".
WHEREAS:
A. ASCI is the current owner of a sand, gravel and aggregate mining property
covering that certain tract of land located in the E1/2SW1/4 of Section 18, TIN, R66W more
particularly described on Exhibit A attached hereto, hereinafter referred to as the "Property";
B. Surface ownership of the Property is subject to the rights of the oil and gas
mineral leasehold estate, which is now owned by KMG; and
C. ASCI have received a mining permit from the State of Colorado Division of
Minerals & Geology ("DMG") for the purpose of Sand and Gravel Extraction operations known
as the "Chavers Mining Resource". The mined out Property is to be reclaimed for use as a
water storage reservoir; and
D. KMG currently operates two wells on the Property, known as the HSR Watada
11-18A and the Chavers 14-18A (the "Existing Wells") located in the NE'/ and the SE %4 of the
SWI/4 of Section 18, TIN, R66W described above, and has the right to develop its oil and gas
leasehold estate by drilling additional wells (the "Future Wells" and together with the Existing
Wells, the "Wells") on the Property; and
E. This Agreement sets forth the parties' rights and obligations regarding the
relationship between the development of the Property by ASCI and KMG's operation and
development of its oil and gas leasehold estate underlying the Property, such rights and
obligations to be binding upon the parties' successors and assigns.
NOW THEREFORE:
In consideration of the mutual covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
1. AREAS RESERVED FOR THE EXISTING WELLS AND FUTURE WELLS;
WELL LOCATIONS.
ASCI shall set aside and provide to KMG that portion of the Property hereinafter referred
to as the, "Oil and Gas Operations Areas", such areas being depicted on Exhibit B attached
hereto. The Oil and Gas Operations Areas are to be made available to KMG for any operations
conducted by KMG in connection with any Well, including, but not limited to, drilling and
production activities, workovers, well deepenings, recompletions, fracturing and replacement