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Drilling Agreement <br /> This Drilling Agreement is entered into thls�2A day off .c 12020 between MGP MINERAL <br /> ENTERPRISES LLLP,a Colorado limited liability limited partnership (*MGP*), C& N M Ranch, LP, a <br /> Texas limited partnership ("C & N M Ranch'), Hill Ranch, Ltd., a Texas limited partnership ('Hill <br /> Ranch"), Richard Bowie Hill, as Trustee of the Richard Bowie HUI Inter Vivos Trust ("Trustee), <br /> collectively, the `Hill Group", and together with MGP, each a "Mineral Lessor,` and collectively, <br /> "Mineral Lessors`),and New Elk Coal Company, LLC,a Colorado limited liability company("NECC"). <br /> A. The Mineral Lessors and NECC have entered into a coal lease dated March 17, <br /> 2020 for the Lorencito Canyon property in Les Animas County, Colorado, as further <br /> described in the coal tease. <br /> B. Hill Ranch owns the surface of the Lorencito Canyon property,and is in the process <br /> of negotiating a surface use agreement with NECC to facilitate operations under the <br /> coal lease. <br /> C. NECC wishes to conduct drilling operations on the Lorencito Canyon property in <br /> anticipation of development under the coal lease, as further described on Exhibit A <br /> to this Drilling Agreement(the"Drilling Program"). <br /> For ten dollars and other good and valuable consideration, the sufficiency of which is acknowledged, <br /> NECC, the Mineral Lessors, and Hill Ranch agree as follows: <br /> 9. The Mineral Lessors and Hill Ranch on behalf of the surface owners agree that <br /> NECC may conduct the drilling operations aet forth on Exhibit A. No payment shelf <br /> be due or owning from NECC In relation to the drilling program. <br /> 2. NECC will indemnify and hold the Mineral Lessors and Hill Ranch harmless from <br /> and against all liability, damages and costs, Including atdnmey fees, arising out of or <br /> related to the Drilling Program. <br /> 3. NECC will share with the Mineral Lessors all geological information including <br /> geological interpretations obtained from drilling the core holes and examination of <br /> the cores taken therefrom. <br /> 4. Prior to drilling the core holes, NECC will have approval from Evergreen Resources, <br /> Inc. the oil and gas operator of the wells located on the Lorenelt+o Canyon property, <br /> to ensure that the Drilling Program does not interfere with the oil and gas <br /> operations. <br /> 110E-762NTIOM OI-3WT6$0 <br />