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b. Within ninety(90) days of the date of this Agreement, PDC shall, under its <br /> existing bonds and/or permits, commence the plugging and abandonment of <br /> the Well; <br /> c. The plugging and abandonment work shall include but not be limited to the <br /> following work: plugging and permanent abandonment of the Well <br /> following all Colorado Oil and Gas Conservation Commission("COGCC") <br /> rules, regulations, and policies related to plugging and permanent <br /> abandonment of the Well (collectively the"P&A Work"). The well casing <br /> shall be cut to a below-grade depth of 8 feet and capped using below-grade <br /> markers pursuant to COGCC Rule 319. <br /> d. The P&A Work will not include reclamation pursuant to COGCC Rule <br /> 1004 and Journey agrees to execute a reclamation waiver, a form of which <br /> is attached hereto as Exhibit A. Prior to the P&A Work, PDC shall, at its <br /> sole cost, remove the tubing and all service equipment(other than gas sales <br /> lines and meters not owned by PDC) from the Well (the "Equipment <br /> Removal") and shall submit and obtain all necessary forms, permits, <br /> licenses and approvals for the P&A Work. Journey herein waives all <br /> COGCC notice requirements regarding the P&A Work. The Parties agree <br /> to coordinate the scheduling of the Equipment Removal and the P&A Work. <br /> 2. Flowline Abandonment. The Parties agree that as part of the P&A Work, PDC will <br /> disconnect, cut, cap and abandon in place all flowlines in accordance with COGCC Rule <br /> 1103. <br /> 3. Cost of P&A Work. Journey shall pay to PDC the sum of$65,000 for the plugging <br /> and permanent abandonment of the Well. Such payment will be due within thirty(30)days <br /> of Journey's receipt from PDC of a COGCC approved Form 6 Subsequent Report of <br /> Abandonment for the respective Well. <br /> 4. Liability. PDC shall be solely responsible for the act and omissions of PDC's <br /> employees, contractors, subcontractors, and their agents and employees, and other persons <br /> performing the P&A Work under this Agreement. Journey shall not be contractually liable <br /> to any of PDC's employees, contractors, subcontractors, and their.agents and employees, <br /> and other persons performing the P&A Work under this Agreement. <br /> 5. Indemnification. PDC shall protect, defend, indemnify,and hold harmless Journey, <br /> its directors, officers, members, employees, and agents from any and all claims, losses, <br /> fines, penalties, and damages for injury to person or property of any individual or entity <br /> directly or indirectly caused or resulting from PDC, its employees or contractors or <br /> subcontractors' performance of the P&A Work and Equipment Removal pursuant to this <br /> Agreement. <br /> 2 <br />