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Areas, and the access roads and Petroleum Pipeline Easements (as defined below) as provided in this <br />Agreement, KPK shall not occupy the surface of the Property except in the event of an emergency or for <br />reasonabie incidental, temporary and non-damaging activities, for which KPK shall be strictly and solely <br />responsible for any damages that may occur to the Property. <br />2. EXTRACTION IN VICINTI'Y OF OIL AND GAS OPERAT1ON5 AREAS; <br />SETBACK REQ[JIREIVIENTS. <br />NCC reserves the right, at its option, to mine the gravel within each of the Oil and Gas Operations <br />Areas in accordance with the terms of this Agreement. In the event that NCC elects to mine the gravel in <br />an Oil and Gas Operations Area, Zadel Family, LLLP shall notify KPK in writing 60 days prior to <br />commencing mining operations within the Oil and Gas Operations Areas and shall fast place temporary <br />concrete barriers around the Wells as directed by KPK prior to commencing any mining operations on the <br />Property. Zadel Family, LLLP shall conduct its mining operations in the Oil and Gas Operations Areas as <br />quickly as reasonably practicable. Zadel Family, LLLP shall conduct its mining within the Oil and Gas <br />Operations Area by excavating pie shaped wedges of gravel and aggregate and thereafter backfiliing and <br />compacting the area with overburden or other suitable material prior to excavating the next pie shaped <br />area; provided, however, that in no event shall Zadel Family, LLLP mine within 90 fee[ of any Well or <br />Production Facilities (defined below) and provided further that in no event shall more than one quarter <br />circle segment of the pie shape be excavated at any one time. Excavation in the Oil and Gas Operations <br />Areas will be coordinated with KPK in a mutually acceptable manner so as to avoid conflict with KPK'S <br />oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. <br />7~ade1 Family, LLLP will bear all costs associated with the mining operation, including permanent or <br />temporary rerouting and replacement of access roads, and flowlines and utility lines in order to prevent <br />tmnecessary interruption of production from any affected Well. In addition, Zadel Family, LLLP and its <br />successor and assigns shall indemnify and hold the KPK harmless from any and all damage, loss and <br />liability, including attorney's fees, incurred by KPK as a result of NCC operations in an Oil and Gas <br />Operations Area. <br />Zadel Family, LLLP will not locate any fot line, building, or structure within any Oil and Gas <br />Operations Area. Zadel Family, LLLP understands and acknowledges that the COGCC has rules and <br />regulations that apply to the distance between a wellhead and public roads, Production Facilities, building <br />units and surface property lines, among other things. In order to give full effect to the purposes of this <br />Agreement, Zadel Family, LLLP hereby waives its right to object to the location of any of KPK's <br />ficilities on the basis of setback requirements in the rules and regulations of the COGCC, as they may he <br />amended from time to time. NCC further and similarly waives its right to object to any other state or <br />local setback requirements or other requirements or regulations that are or become inconsistent with this <br />Agreement or that would prohibit or interfere with the rights of KPK, its successors and assigns, to <br />explore for and produce the oil and gas in accordance with this Agreement. KPK or its successors and <br />assigns may cite the waiver in this paragraph in order to obtain a location exception or variance under <br />COGCC rules or from any other state or local governmental body having jurisdiction; provided that Zadel <br />Family, LLLP shall not be required to alter the agreed boundary of the Oil and Gas Operations Area to <br />accommodate the location exception or variance. Zadel Family, L,LL P agrees not to object to the use of <br />the surface in the. Oil and Gas Operations Areas so tong as such are is consistent will-( this Agreement and <br />'Ladel Family, P.f_LP will rc~ onab}y cuof~cYatr at no r,,ater;ai cost to Zadel Eatnily. L[.L,P ttt anti` eelbr4c <br />i1~~ SPK {~r i{~ cgy~~'.r~SCerS and aSRtgnti tri 6~ta kil pC:at%CS tiG?P. ttlfi C`;)(1CC~ Or afl~! ~CrC:;I J17riJd7Q itQ'n. <br />3. GAT'}IERf.~'t> LI?vEfi Ai~!t) FLOt~9,714ES. <br />Subject to the liatitations hereinafrer 3escribed, KPK. has a continuing right and enritlement to <br />own, operate, maintain, repair and replace all existing and future flowlines, gathering lines and other <br />zt <br />-2- <br />