2016-08-22_REVISION - M2000158 (4)

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. � I�illl �'I" III�II ICI IIIIIII �II�I III�II III III ' II'I III ,. ,� r 3505739 09/20/2007 05:20P Weld County, CO 2 of 15 R 81.00 D 0.00 Steve Moreno Clerk&Recorder ?�f , oration, pivision� �d,et Operations Areas shown on Exhibit A, unless this Agreement is amended by con*W"b`�` ravel Company and KMG. Except for the Oil and Gas Operations Areas, and the access roads and Petroleum Pipeline Easements (as defined below) as provided in this Agreement, KMG shall not occupy the surface of the Property except in the event of an emergency or for reasonable incidental, temporary and non-damaging activities, for which KMG shall be strictly and solely responsible for any damages that may occur to the Property. ( a KMG shall have the right to drill Future horizontal or twin Wells within the Oil and o( a a� Gas Operations Areas, including horizontal and twin wells that produce from and drain the rG , Property and/or lands other than the Property. As pail of the consideration for this Agreement, �'�(� Gravel Company hereby waives its right to, and covenants that it shall not protest or object to any such exception location or application for same by KMG. KMG shall not otherwise have rn e the right to drill new wells on the Property. The wellhead location for any Future Well drilled 1 from the Oil and Gas Operations Area shall not be closer than two hundred feet (200') from the edge of the Oil and Gas Operations Area. In no event shall Gravel Company stockpile mined materials within a radius of one hundred fifty feet(150')of any Existing Wells. 2. EXTRACTION IN VICINITY OF OIL. AND GAS OPERATIONS AREAS; SETBACK REQUIREMENTS, Gravel Company reserves the option to mine the gravel within each of the Oil and Gas Operations Areas in accordance with the terms of this Agreement. In the event that Gravel Company elects to mine the gavel in an Oil and Gas Operations Area, Gravel Company shall notify KMG in writing sixty (60) days prior to commencing mining operations within the Oil and Gas Operations Areas and shall first place temporary concrete buiTiers around the Existing Wells as directed by KMG prior to commencing any mining operations on the Property. Gravel Company shall conduct its mining operations in the Oil and Gas Operations Areas as quickly as reasonably practicable. Gravel Company shall conduct its mining;within the Oil and Gas Operations Area in accordance with rules and regulations promulgated by the State of Colorado Division of Minerals and Geology. by excavating pie shaped wedges of gravel and aggregate and thereafter backfilling and compacting the area with overburden or other suitable material prior to excavating the next pie shy+/reel area; provided, however, that in no event shall Gravel Company mine; within ninety feet (90') of any Existing Alcll or Production Facilities and provided further that in no event shall more than one quarter circle segment of the pie shape be excavated at any one time. Excavation in the Oil and Gas Operations Areas will be coordinated with KMG in a mutually acceptable manner so as to avoid conflict with KMG's oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. Gravel Company will hear all costs associated with the mining operation, including permanent or temporary rerouting and replacement of access roads, and flowlines and utility lines in order to prevent unnecessary interruption of production from any afTected Well. In addition, Gravel Company and its successor and assigns shall indemnify and hold the KMG harmless from any and all damage, loss and liability, including attorney's fees, incurred as a result of Gravel Company's operations in an Oil and Gas Operations Area. Gravel Company will not locate any lot line, building, or structure within any permanent Oil and Gas Operations Area., but nothing herein contained in this Agreement or elsewhere shall prevent Gravel Company from locating structures within an area that has been Page 2 Surface Use Agreement