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[111111 11111 IAIIIIIVI IIN NIIIIHIII III IIIIIII01111 <br />3591169 11/21/2008 02:18P Weld County, CO <br />5 of 22 R 111.00 0 0.00 Steve Moreno Clerk & Recorder <br />a. KMG shall install and maintain, at its sole cost and expense, all fences <br />around the Existing Wells and any Future Wells in compliance with the Rules and Regulations of <br />the COGCC; <br />b. KMG shall install and maintain, at its sole cost and expense, all gates and <br />locks reasonably necessary for the security of any Wells or Production Facilities in the Oil and <br />Gas Operations Areas. Such gates and locks shall be the standard gates and locks used by KMG; <br />c. KMG shall paint any production facilities for any Wells, including <br />wellhead guards, with paint that is approved by the COGCC; and <br />ASCI shall not inhibit KMG's access to the Oil and Gas Operations Areas or inhibit <br />KMG's operations within the Oil and Gas Operations Areas or in the vicinity of the Production <br />Facilities by landscaping or other improvements, unless otherwise agreed upon between ASCI <br />and KMG. ASCI shall place temporary concrete barriers around all Production Facilities as <br />directed by KMG before any nearby mining operations commence. In no event shall ASCI mine <br />within 90 feet of any Production Facilities or stockpile mined materials within a radius of 50 feet <br />of any Production Facilities. <br />6. NOTICE OF FUTURE OPERATIONS. <br />KMG shall provide at least seven (7) days prior written notice to ASCI of any operations <br />in connection with the reworking, fracturing, deepening or recompletion operation on an Existing <br />Well or Future Well; provided, however, that KMG shall provide at least thirty (30) days prior <br />written notice to ASCI of the initial drilling of any Future Wells. Regardless of the foregoing <br />notice requirements, KMG shall have immediate access to any of its facilities in the event of an <br />emergency. <br />After receipt of the above notice, but not less than five (5) working days prior to KMG's <br />mobilization on the applicable Oil and Gas Operations Areas, either KMG or ASCI may request <br />an on-site meeting. The purpose of the meeting shall be to inform ASCI of the expected activity <br />and to coordinate site access, hazards, barricades, restoration or any other issues that affect the <br />use and safety of ASCI's development. <br />7. COMPLIANCE WITH SAFETY REGULATIONS. <br />KMG understands that ASCI surface mining operations on the Property are subject to <br />certain MSHA regulations. KMG agrees that while conducting operations on the Property, it <br />will comply with such reasonable MSHA requirements which ASCI notifies KMG are applicable <br />to KMG's operations on the Property. KMG also agrees to inform its contractors and <br />subcontractors about such requirement. <br />5 <br />Surface Use Agreement <br />