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SURFACE USE AGREEMENT
<br />This Surface Use Agreement ("Agreement's is dated and made effective this _day of
<br />2007, and is between K.P. Kauffman Company, Inc. ("KPK") with an address of 1675
<br />Broadway, 28'?'~Floor, Denver, CO 80202-4628, and 7ade1 Family, LLLP with an address of 4200 WCR
<br />19, Fott Lupton, Colorado 80621.
<br />Whereas:
<br />A. Zadel Family, LLLP is the current landowner or is the current lessee under one or more
<br />sand, gravel and aggregate mining leases covering certain tracts of land located in Weld County,
<br />more particulazly described on Exhibit "A" attached hereto, being a portion of Section 24, T2N,
<br />R67W 6th P.M., Weld County, Colorado (hereinafter referred to as the "Property");
<br />B Surface ownership of the Property is subject to the rights of the oil and gas mineral
<br />leasehold estate, a portion of which is now owned by KPK;
<br />C. Zadel Family, LLLP has received a mining permit from the State of Colorado Division of
<br />Reclamation, Mining and Safety, formerly known as the Division of Minerals & Geology
<br />("DMG") for the purpose of open pit sand and gravel mining operations, known as NCCI Pit
<br />Number 1. Portions of the mined out Property are to be reclaimed for use as water storage
<br />reservoirs.
<br />D. KPK currently operates the following wells on the property, (the "Well" or "Wells"): the
<br />1415 Corp Unit C#1, located in the SW/4NE/4 of Section 24, T2N, R67W, the KPK Glenn
<br />Horton #1, located in the NE/4SE/4 of Section 24, T2N, R67W, and the KPK Glenn Horton #2,
<br />located in the SE/4SFJ4 of Section 24, T2N, R67W; and
<br />E. KPK shall continue to have the right to exercise its oil and gas leasehold rights to drill an
<br />additional well or a twinned well on each OGOA in accordance with COGCC rules.
<br />F. This Agreement sets forth the parties' rights and obligations regazding the relationship
<br />between the operations and development of the Property by Zadel Family, LLLP and KPK's
<br />operation and development of its oil and gas leasehold estate underlying the Property, such rights
<br />and obligations to be binding upon the parties' successors and assigns.
<br />Now Therefore: In consideration of the mutual covenants contained herein, and other good and
<br />valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
<br />1.'ollows:
<br />AREAS RESERVED FOR THE WELLS; WELL LOCATIONS.
<br />Zadei Family, LLLP shall ~.t aside arzd provide Yo KPK that pr,rtion of the Property hereinafter
<br />referred to as the. "Oil arp3 zsas Operatiors Area,", streh areas being depicted on Exhihir R attached
<br />1_erato. "1'hc Oit aid {ira5 Operations ,0.rr„as are to be made available to K1'I< in their present eonditian €or
<br />arty operations cor?ducrul by KP1C in cck~rfection with any Well, including, but rrot limited hz, drilling raw
<br />veils and pcexi,,,ctien acttvitie~, wurkovcrs, we17 deepening, =ewn~lleeion, fracncrirtg and drilling
<br />r.°placement wells. Aft Wells will be limited to the Oil and Gras Operations Areas shown on Exhibit B,
<br />unloss this Agreement is amended by consem of NCC and KPK. Except for the Oil and Gas Operations
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