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4274435 01/31/2017 12:19 PM <br /> Page 2 of 11 <br /> 2. Oil and Gas Operations Area. The parties agree to the establishment of an exclusive <br /> fourteen(14) acre oil and gas operations area("OGOA")in the E2SWNE of Section 20-T1N-R66W of the <br /> Subject Lands at the location depicted on Exhibit 1 which is fully incorporated herein by reference. <br /> Kerr-McGee and Anadarko (all references to Anadarko"in this Agreement shall apply to any future oil <br /> and gas lessee of Anadarko); drilling, reworking, and recompleting oil and gas wells; conditioning, <br /> treating, and handling oil and gas, produced water and other substances; other oil and gas related <br /> activities and operations, including storing, moving, and/or installing,equipment,tanks, pits,flow lines, <br /> facilities, materials, goods and structures, and, engaging in any other operations and activities <br /> associated with the exploration,development,and production of oil and gas. Subject to Limited Grading <br /> Operations, described below, the OGOA will be for the exclusive use of Kerr-McGee and Anadarko. <br /> Brannan agrees to support Kerr-McGee's request to the Colorado Oil and Gas Conservation Commission <br /> for an exception location or locations for drilling a well or wells on the OGOA and will promptly execute <br /> such documents as may be reasonably requested by Kerr-McGee for the permitting and drilling of any <br /> well on the OGOA. <br /> a. Limitation of Operations — Kerr-McGee and Anadarko. Anadarko and Kerr- <br /> McGee shall not drill any oil and gas well on the Subject Lands other than on the designated <br /> OGOA until the Brannan's mining operations for sand, gravel and other construction materials <br /> have ceased and the mining area has been reclaimed and the Reclamation Permit has been <br /> released over lands other than the OGOA. Similarly, Anadarko and Kerr-McGee shall not install <br /> or construct any pipelines,flowlines or other utility lines on the Subject Lands except within the <br /> OGOA and Easement until Brannan's mining operations for sand,gravel and other construction <br /> materials have ceased and the mining area has been reclaimed and the Reclamation Permit has <br /> been released over lands other than the OGOA and Easement. It is the intent of the parties that <br /> such operations by Kerr-McGee shall be limited to the OGOA and Easement until the <br /> Reclamation Permit has been released as to other lands in the mining area. As to lands for <br /> which the Reclamation Permit has been released, Anadarko and Kerr-McGee's operations on <br /> such lands shall be subject to then existing law. <br /> b. Northwest Boundary of the OGOA. Notwithstanding any other description of <br /> the OGOA,the northwest corner and western boundary of the OGOA shall not encroach into the <br /> path of Brannan's access drive or the future right-of-way alignment of a planned north-south <br /> arterial/collector road. in the event necessary, the location of the OGOA shall be adjusted, <br /> however any such adjustment shall not move the OGOA more than 100'feet and the size of the <br /> OGOA shall remain unchanged. However, after Kerr-McGee or Anadarko gives notice of its <br /> intent to commence operations in the OGOA,the location OGOA may not be moved or changed. <br /> C. Activities Within the OGOA. Prior to Kerr-McGee or Anadarko giving notice of its <br /> intent to commence operations on the OGOA, Brannan may recover topsoil and subsoil from <br /> OGOA land ("Limited Grading Operations"). Brannan shall first submit an engineering plan for <br /> such Limited Grading Operations to Kerr-McGee and Anadarko for review, comment, and <br /> approval. Kerr-McGee and Anadarko's consent to such plan shall be required but shall not be <br /> 2 <br />