2016-08-22_REVISION - M2000158 (4)

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111111111111111111 III 111111111111111111111 IN 11111111 3505739 09/20/2007 05:20P Weld County, CO 6 of 15 R 81.00 D 0.00 Steve Moreno Clerk&Recorder After receipt of the above notice, but not less than five (5) working days prior to KNIG's mobilization on the applicable Oil and Gas Operations Areas, either KMG or Gravel Company may request an on-site meeting. The purpose of the meeting shall be to inform Gravel Company of the expected activity and to coordinate site access, hazards, barricades, restoration or any other issues that affect the use and safety of Gravel Company'development. 7. COMPLIANCE WITH SAFETY REGULATIONS. KMG understands that Gravel Company's surface mining operations on the Property are subject to certain OSHA regulations. KMG agrees that while conducting operations on Property, it will comply with such reasonable OSHA requirements which Gravel Company notifies KMG are applicable to KMG's operations on the Property. KMG also agrees to inform its contractors and subcontractors about such requirement. 8. DRILLING AND COMPLETION OPERATIONS. KMG shall endeavor to diligently pursue any drilling operations to minimize the total time period and to avoid rig relocations or startup during the course of drilling. Gravel Company waives any objections to continuous (i.e.,24-hour)drilling operations. 9. SHUT-IN OF WELLS. In the event Gravel Company interferes with KMG's operations on the Property which result in KMG shutting-in or prevents KMG from repairing or returning to production one or more of the Wells, then Gravel Company shall pay to KMG as liquidated damages (actual damages being difficult to ascertain) ($5,000) per day per Well for each day the Well(s) are not producing. Both parities Agree that such amount is a reasonable estimate of actual damages which would be difficult to calculate with certainty. Gravel Company shall provide a bond in the amount of$50,000 as security for payment of such liquidated damages. Such bond shall be in form and from bonding agents acceptable to KMG, shall name KMG as an obligee and shall expressly permit the KMG direct access to and recourse against the issuer of such bond. Copies of such bond shall be provided for KMG's approval not less than thirty(30) days prior to the commencement of mining on the Property. 10. GOVERNMENTAL PROCEEDINGS. Neither party to this Agreement will oppose the other party to this Agreement in any agency or governmental proceedings, including but not limited to the COQCC, Weld County, the Division of Minerals and Geology, the Colorado Division of Reclamation, Mining and Safety or other governing body proceedings, related to each parties' operations on the Property, including but not limited to drilling, workovers, well deepenings and recompletions and sand and gravel operations, provided that each party's position in such proceedings is consistent with this Agreement. Page 6 Surface Use Agreement