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HUMID HMI 11111111111111IIIIIII Ill 11111 HII1111 <br />3591169 11/21/2008 02:18P Weld County, CO <br />3 of 22 R 111.00 0 0.00 Steve Moreno Clerk & Recorder <br />building units and surface property lines, among other things. In order to give full effect to the <br />purposes of this Agreement, ASCI hereby waives its right to object to the location of any of <br />KMG's facilities on the basis of setback requirements in the rules and regulations of the <br />COGCC, as they may be amended from time to time. ASCI further and similarly waives its right <br />to object to any other state or local setback requirements or other requirements or regulations that <br />are or become inconsistent with this Agreement or that would prohibit or interfere with the rights <br />of KMG, its successors and assigns, to explore for and produce the oil and gas in accordance <br />with this Agreement. KMG or its successors and assigns may cite the waiver in this paragraph in <br />order to obtain a location exception or variance under COGCC rules or from any other state or <br />local governmental body having jurisdiction. ASCI agrees not to object to the use of the surface <br />in the Oil and Gas Operations Areas so long as such use is consistent with this Agreement and <br />ASCI will provide KMG or its successors and assigns with whatever written support they may <br />reasonably require to obtain permits from the COGCC or any local jurisdiction. <br />3. GATHERING LINES AND FLOWLINES. <br />Subject to the limitations hereinafter described, KMG has a continuing right and <br />entitlement to own, operate, maintain, repair and replace all existing and future flowlines, <br />gathering lines and other pipelines that may be necessary or convenient to its operations on the <br />Property ("Pipelines"). The construction and burying of Pipelines shall be at the sole cost and <br />expense of KMG or its gas purchaser. <br />KMG shall have the right to lay pipelines within the "Petroleum & Access Easements" <br />depicted in Exhibit B or such other locations as may be mutually agreed to in writing by the <br />Parties. The Petroleum Pipeline Easements shall be fifty feet (50') in width during construction, <br />installation or relocation operations and otherwise reduced to thirty feet (30') in width for post - <br />construction usage. All Pipelines shall be located approximately 48 inches below a surface depth <br />at the time of installation. <br />ASCI development plans anticipate that haul roads may cross over Existing and Future <br />Pipelines. ASCI agrees to abide by the General Guidelines for Design and Construction <br />Activities On or Near Kerr- McGee Gathering LLC and Kerr - McGee Rocky Mountain LLC <br />Pipelines and Related Facilities revised 3-2004 (Exhibit C). In particular, ASCI shall maintain a <br />minimum of 48 inches and not more than 72 inches of cover over all Pipelines during any of <br />ASCI operations on the Property. KMG may install and maintain markers on its Petroleum <br />Pipeline Easement. KMG shall mark its flowlines at all locations reasonably requested by ASCI. <br />ASCI will not allow any extraction to occur, commencing at the surface of the original <br />ground, closer than 25 feet from any Pipeline of KMG unless a soils stability report prepared by <br />an engineer licensed in the State of Colorado indicates that a lesser setback will be adequate for <br />preservation of the integrity of said pipeline and provided that upon completion of such <br />extraction, ASCI shall backfill and level the area within 25 feet from any Pipeline. <br />Notwithstanding anything herein to the contrary, in no event shall ASCI allow any extraction to <br />occur, commencing at the surface of the original ground, closer than 15 feet from any Pipeline <br />without KMG's prior written approval. <br />ASCI shall not allow any stockpile of soil to be placed over any Pipeline of KMG's. <br />3 <br />Surface Use Agreement <br />