PERMFILE44114

• Permit No: M2002120
• IBM Index Class Name: Permit File
• Doc Date: 3/26/2003
• Doc Name: Land Use Agreement - Merit/Hall-Irwin
• From: Keith M. Crouch
• To: DMG
• Media Type: D
• Archive: No

03/26/03 08:28 FA% 970 348 3777 ATAA,OIL
03/26/2003 09:22 FAX [phone] t't i;nracut
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d. Hall-Irwin agrees that it will not mine of extract any portion of the access roads set
forth on Exhibit C or as mutually agreed in writing to by the Patties without the
written consent of Merit The Parties ages that the access mad to the Bernhardt
1.3 Well depicted on 8xhibit C shall be mined and then reconstructed with
overburden material by Ball--Irwin before the ftowline for said well (as defined
below) is relocated_ During said mining of the Bernhardt 1-3 access road to
Hall-Irwin shall provide a reasonable alternative eooess toad to said Well.
3. BATTERIES ANb EQUIPMENT (PRODUCTION RAr~n.rrrFS).
Merit shall have the right to locate, build, repair and maintain such tanks, separators,
dehydrators, compressors and other equipment reasonably appropriate ~r the operation
and psndnction of any Well within the Surface Facilities Arses shown on Exhibit C. Ia no
event shall Hall-Irwin mine ar extract sand and gravel closer than 75 feet from any
production facility of Merit without the prior written consent of Merit.
4. r'LOR~LIrIES AND P1~i•~S.
a. The mutes of Merit's ~vciatiag flowlines for the Wells are depicted on Exhibit C
attached hereto. Merit will continue to use and apcta#e the existing flowlines, to
include the repair of the same as necessary. for the purposes of producing oil and
gas from the Wells. Flowlines ate defined as those lines which can9 water or
hydrocarbons from the wellhead to a production trait (such as a separator).
Notwithstanding the foregoing, the flowline for the Bernhardt 1-3 Well shall be
relocated by Medt to the mute described on Fxht~tit C attealred hereto and labeled
as the "Approxima4a Relocation of Cras Line" aim Hall-Irwin has mined said area
and reconstructed the access road and tlowliae mute to the Bernhardt 1-3 Well
consistent with the depiction of the area around the Approximate Relocation of Gras
Well identified on Bxhibit C for the Bernhardt 1-3 Well. At suchtittte as Hall-Irwin
elects to have Merit relocate the Bernhardt 1-3 flowline, it wiU give Merit written
notice to that effect Within 30 days of receipt of each notice, Merit will provide
Hall-Ir+via with a wriitcn estimate of the actual costs to be incarred is the relocation
of the Bernhardt 1-3 tlawliae and within thirty (30) days of receiving the amouttt of
the estimate fromHall-Irwin in immediately available funds, Merit will relocate the
Semhardt 1-3 flowline to the route described oa Exhibit C as the "Approximate
Relocation of Cja9I.iue.° Actual costs include, but are not limited to, out-of-pocket
expenses, the wages and benefits of any employees of Merit engaged is reloaatiog
the Barnhardt 1.3 flowline included in the estimate, and a reasonable ahargc for
overhead, as iaoluded is the estimate, equal to no more than ten percent (10%) of
the actual costs.
b. Merit shall mark its flowlines at all locations reasonably requested by Hall-Irwin
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