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a. Notification. Zadel Family, LLLP agrees to notify KPK at least twenty (20) days before Zadel <br />Family, LLLP begins any activities on the property which will utilize any heavy equipment or other <br />equipment likely to damage KI'K's Pipeline(s) that are not covered appropriately. <br />b. Payment. During the period of any shut in, Zadel Family, LLLP shall pay KPK for each shut <br />in the following amounts: <br />Shut In Duration Fee per Weller Dav <br />5 days or less None <br />6 - 29 days $150 <br />30 days or more $200 <br />7ade1 Family, LLLP shall also pay KPK any costs to rework the well(s) in order to place the well(s) in <br />production status aRer the shut in and costs to replace pipeline(s) and flowline(s) that aze damaged by the <br />surface construction activities of Zadel Family,LLLP. <br />10. GOVERNMENTAL PROCEEDINGS. <br />Zadel Family, LLLP shall not oppose KPK in any agency or governmental proceedings, including <br />but not limited to the COGCC, Wcid County, or other governing body proceedings, related to KPK's <br />operations on the Property, including but not limited to drilling, workovers, well deepenings and <br />recompletions> provided that KPK's position in such proceedings is consistent with this Agreement and <br />provided further the proposed operations are in accordance with applicable laws, COGCC regulations and <br />Llwful local ordinances, resolutions or permit conditions. <br />11. MINING PLAN. <br />Zadel Family, LLLP has provided herewith copies to KPK of its Mining Permit, and the <br />engineering structural report prepazed in connection with the Mining Permit (the "Plans"). KPK <br />acknowledges receipt of said Plans and has no objections to said Plans as approved by the DMG. This <br />acceptance by KPK in no way waives KPK's rights in this Agreement or obligations of NCC under the <br />terms of this Agreement. Zadel Family, LLLP acknowledges that KPK may conduct oil and gas activities <br />within the applicable Oil and Gas Operations Areas as provided herein and shall not oppose KPK before <br />any agency or governmental proceeding if such oil and gas activities are proposed and carried out in <br />accordance with the terms of this Ageement and applicable laws, COGCC regulations and lawful local <br />ordinances, resolutions or permit conditions. <br />12. LIMPI'ATION OF LIABILITY, RELEASE AND INDEMNITY. <br />A. No party shall be liable for, or be required to pay for, special, punitive, exemplary, incidental, <br />consequential or indirect damages to any other party for acti~lties undertaken within the scope of this <br />agreement; <br />13. lxcept as to claims artsirg auc ai poilut.ion or e;rviromnertal 3amage ;",vhi:::n esa~m? are <br />gaverned by ~rc'trii,i+] i3 t?Cii~54} or t,;.~t or oti;tr rrrc3visi,+ns of sibs :~gre.:,tert l.vrish ciai;nv shall :~:- <br />ge~.~eeneo by she cermy of tGis r.gre+:rser~cl. each }.arty sttah he and remain reset+nsible fr+: ita owr. liability <br />fvr ail losac:., clcurns. dan>nges, <.1.•rt>Ftnas, smf.,, causes of anion fines, penalties, e~pcr>«es and habiluies, <br />including without limitation aY.orneys` lees :end ather con's assa:iated therewith (ail of the afore aid <br />herein referred to collectively as "Claims"), arising out of or connected with each such party's ownership <br />25 <br />-6- <br />