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SURFACE USE AGREEMENT <br />This Surface Use AgReement ("Agreement") is dated and made effective this day <br />of , 2006, and is between Kerr-McGee Oil & Gas Onshore LP ("KMG") with an <br />address of 1999 Broadway, Suite 3700, Denver, CO 80202, and ZADEL FAMILY, LLLP <br />(collectively hereinafter referred to as "Surface Owner") all with an address of 4200 WCR 19, <br />Fort Lupton, Colorado 80621 <br />B. Surface ownership of the <br />mineral leasehold estate, a portion <br />subject to the rights <br />~w owrieci.by KMG; <br />and gas <br />C. Surface Owner plans to develop the <br />operation known as NCCI Pit Number 1. <br />D. KMG currentl operates;' = ~ <br />t ' i~~"' (the "Ezistit <br />Section ~ t' ~ described above, and has;th <br />by drilling additional:wells (the "Future; <br />_c <br />E. Tlus Ageement sets forth the <br />relationship betWeett the dQVelopment ~ <br />the <br />as a gravel mining <br />'_€An,;:-°the Pro ert , known <br />ierally located of <br />tits oil and gas leasehold estate <br />Property, and <br />rights and obligations regazding the <br />~perty by Surface Owner and KMG's <br />operation and deveIopmen~;;Cf.ts„oil and gas leasehold estate underlying the Property, <br />such rights and obltgatwris to be bm~ing-upon the parties' successors and assigns. <br />In cons~deratton of'tle mutual covenants contained herein, and other good and <br />y~luable consideratipn, the receipt and sufficiency of which is hereby acknowledged, the <br />parties agree as follows: <br />1. AREAS RESERVEII;FOR THE EXISTING WELL AND FDTURE WELLS. <br />Surface Owner -shall set aside and provide to KMG that portion of the Property <br />hereinafter referred to 85'the, "Oil and Gas Operations Areas", such azea(s) being depicted on <br />Ex;~bir'. ;4 ~ attached hereto. The Oil and Gas Operations Areas aze to be made available to <br />KMG in their present condition for any operations conducted by KMG in connection with the <br />Existing Weil or any Future Well, including, but nut limited to, drilling and production activities. <br />workovers, well deepenings, ; ecoerzl~1etinns. ftarttu~ing an~i reglaces~ent wells. Except far the Oii <br />anti {ies ihx:ratuins Areas, snci the access roads ands easements asuciated witl: flowlines, <br />gathering lines and pipslinc3 as proaid~f in this Agreement, KMG shall not occuf;y the surface <br />cif the Property excerpt ice tfie event of a^ emergency or 'for reasonabka incidenia; temporary ar::i <br />non-Damaging a~~tiviti€s, for which KM{i shah he stt7etly and solely responsible for any damages <br />that may occur. <br />