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lIIIII IIIII Iillll III 11111111111111111111111111 IN 1111 <br /> 3M5739 09120/2007 05:20P Weld County, CO <br /> 7 of 15 R 81.00 D 0.00 Steve Moreno Clerk&Recorder <br /> 11, DEVELOPMENT PLANS. <br /> Gravel Company has provided herewith copies to KMG of its Mining Permit, and the <br /> engineering structural report prepared in connection with the Mining Permit (the "Plans"). KMG <br /> acknowledges receipt of said Plans and has no objections to said Plans as approved by the DMG. <br /> This acceptance by KMG in no way waives KMG's rights in this Agreement or obligations of <br /> Gravel Company under the terms of this Agreement. Gravel Company acknowledges that <br /> KMG may conduct oil and gas activities within (he applicable Oil and Gas Operations Areas as <br /> provided herein and shall not oppose KMG before any agency or governmental proceeding if <br /> such oil and gas activities are proposed and carried out in accordance with the terms of this <br /> Agreement. <br /> 12. LIMITATION OF LIABILITY, RELEASE AND INDEMNITY. <br /> a. No party shall be liable for, or be required to pay for, special, punitive, <br /> exemplary, incidental, consequential or indirect damages to any other party for activities <br /> undertaken within the scope of this agreement; <br /> b. Except as to claims arising out of pollution or environmental damage <br /> (which claims are governed by Section 13 below) or out of other provisions of this <br /> Agreement (which claims shall be governed by the terms of this Agreement), each party <br /> shall be and remain responsible for its own liability for all losses, claims, damages, <br /> demands, suits, causes of action, fines, penalties, expenses and liabilities, including <br /> without limitation attorneys' fees and other costs associated therewith (all of the aforesaid <br /> herein referred to collectively as "Claims"), arising out of or connected with each such <br /> party's ownership or operations on the Property, no matter when asserted, subject to <br /> applicable statutes of limitations. Each such party shall release, defend, indemnify and <br /> hold the other parties, their officers, directors, employees, successors and assigns, <br /> harmless against all such Claims. This provision does not, and shall not be construed to, <br /> create any rights in persons or entities not a party to this Agreement, nor does it create <br /> any separate rights in parties to this Agreement other than the right to be indemnified for <br /> Claims as provided herein; <br /> C. Upon the assignment or conveyance of a party's entire interest in the <br /> Property, that party shall be released from its indemnification in Section 12.b. above, for <br /> all actions or occurrences happening after such assignment or conveyance. <br /> 13. ENVIRONMENTAL INDEMNITY. <br /> The provisions of Section 12 above, except for Section 12.a., shall not apply to any <br /> environmental matters, which shall be governed exclusively by the following, subject to the <br /> limitations of Section 12.a. above: <br /> a. "Environmental Claims" shall mean all Claims asserted by governmental <br /> bodies or other third parties for pollution or environmental damage of any kind, arising from <br /> operations on or ownership of the Property or ownership of the oil and gas leasehold interest, <br /> Page 7 <br /> Surface Use Agreement <br />