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03/28/03 09:28 FAA 970 348 3777 <br />03/28/2003 08:23 FAX 872 980 8620 <br />BATAA, OI~ <br />yr;Ail'1 isn l9r w <br />~007~ ~y~ <br />90 days of conclusion of mirrirtg operations at the sole cost and expanse of <br />Hall-Irwin. Should Merit need to conduct operations oa any well amunfl which <br />Hall-Irwin is conducting the temporary adzzmg in Mined Segments sad if such <br />temporary mining unreasonably interferes with Merit's operation, Hall-Irwin will <br />diacontirine said temporary mining, restortr any open Mining Segment and refraun <br />from further mining within the applicable Oil and Gas Operations Area until Merit <br />has concluded its operalien at the applicable well, <br />b. Hall-I2wi$ will not locate inhabitEd buildings within 50 feet from the outer <br />boundary of any Oil and Gas Operations Area. Merit shall not locate nay Iuture <br />wells or production facilities loser than 75 feet away Sam the outer boundary of <br />any Oil and Gas Operations Area_ Since future walls maybe located ,as close as <br />seventy-five (75) feet away from the outer boundary of as Qil and Gas Operations <br />Area., Hall-Irwin waives the 150-foot setback requirement provided in Rule 603 a. <br />(2) of the COGCC roles and re$utstions insofar and only insofar as subsequent <br />development may create new surface property lines within ISO feet of any Oil and <br />Gas Operations Area. 1n the event the high density area rules become applicable to <br />arty future wells, Hall-Irwin also waives the high density set back requirements in <br />Rule 603 b. of the COGCC Tales and regulations. The waiveas provided herein <br />shall be binding upon the successors and assigns of Hall-Irwin and shall benefit <br />Merik its successors and assigns under the existing oil and gas leasehold estate. <br />8. DEVELOPMEI+TT PLANS. <br />Hall-Irwin has provided herewith copies to Merit of its Mining Penult Application, and the <br />engineering sttrrctural report prepared in connection with the Mining Permit Application <br />(the glans',. Merit aclmowledges receipt of said Plans and has no objections to said Plans <br />as submitted. Further, Merit agrees that boa execution of this Age+eemeat, it shall <br />withdraw fiaIIr the DMG its objections to the Mining Penult and Merit shall not oppose any <br />other surface use or stufaco development plan ofl:Tall--Irwin if such use ox plan is pmgosed <br />and carried out consistent with the terms of this Agreemem. 'This acceptance by Merit and <br />agxeemc~.nt to withdraw its objections in no way waives Merit's rights is this Agr+aeareant or <br />obligations ofAall-Irwin tinder the terms oftbis Agreement. Ball-hwin acknowledges that <br />Merit may conduct oil and gas activities within the applicable Oil and Gas Operations <br />Areas as provided herein and shall not oppose Merit before any agency or goveromeatal <br />proceeding if such oil and gas activities are proposed and caaied out in accordance with the <br />terms of this Agreement. <br />9. LIlVI,ITATION OF LIABILITY, RELEASE AND lIVDEMNTTY. <br />a. NO PARTY SHALL 13$ LIAI3LB FOR, OR .88 REQUIItEb TO PAY FOR, <br />SPECIAL, PLfiIl1TVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR <br />Page 6 of 12 <br />