2016-08-22_REVISION - M2000158 (4)

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1� 0& M ao00`11& f IIIIII IIIII IIIIII III IIIIIII Illll 11111111111111111111 IN R�ec�ell/�eo 3505739 09/2012007 05:20P Weld County, CO 73$ 1 of 16 R 81.00 0 0.00 Steve Moreno Clerk& Recorder AUG 22?016 SURFACE USE AGREEMENT 'Divisipn of M n9&Rev This Surface Use Agreement ("Agreement") is dated and made effective this 7 day oy ' August, 2007, and is between Kerr-McGee Oil & Gas Onshore LP ("KMG") with an address of 1999 Broadway, Suite 3700, Denver, CO 80202 and the Platte Sand and Gravel, LLC together with The Platte Trust ("Owner") both of such parties being hereafter referred to as ("Gravel Company")with an address of 1547 Turner Road,Colorado Springs, CO 80920. WHEREAS, Gravel Company is the currently the holder of a Reclamation Permit Number M2000158 from the state of Colorado (Colorado Division of Reclamation, Mining and Safety) allowing for a sand, gravel and aggregate mining operation covering that certain tract of land located in Weld County, Colorado more particularly described on Exhibit A attached hereto (hereinafter referred to as the"Property");and WHEREAS, Owner is the fee owner of the Property and of the Surface ownership of the Property, is subject to the rights of the oil and gas mineral leasehold estate,a portion of which is now owned by KMG; and WHEREAS,the mined out Property is to be reclaimed for use as a water storage reservoir and recreation purposes;and WHEREAS, KMG currently operates thirty-five (35) wells on the Properly (the "Existing Wells"), which are generally located throughout the Property and has the right to develop its oil and gas leasehold estate by drilling additional directional or twin wells (the "Future Wells' next to Existing Wells, the "Wells") on the Property; provided, any future vertical wells will only be drilled in areas where no gravel mining is to occur; and WHEREAS, this Agreement sets forth the parties' rights and obligations regarding the relationship between the development of the Property by the Gravel Company 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: I. AREAS RESERVED FOR THE EXISTING WELLS AND FUTURE WELLS; WELL LOCATIONS. Gravel Company 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 A attached hereto. The Oil and Gas Operations Areas are to be made available to KMG in their present condition for any operations conducted by KMG in connection with any Well, including, but not limited to, drilling and production activities, workovers, well deepening, re- completions, fracturing and replacement wells. All Wells will be limited to the Oil and Gas Page 1 Surface Use Agreement