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<br />1 1~01~ 27 R ~ AD D 0,00 ~~Stete Meoreno Clerk b Recorder
<br />. SI)RFA(:E DAMAGE AGREEMENT
<br />TH[S AGREEMENT, dated effectively this 18th day of March 2W3 is made
<br />by and between the undersigned, FARFRUMWURK/N, LLLP, a Colorado Limited
<br />LiaAility Limited Partnership, whose address is I l8l l Upham Street it12 Broomfield,
<br />CO 8W20, herein caled "OWNER" and EnCana Energy Resources Inc., 950-! T"
<br />Street, Suite 2(rW Denver, Colorado 80202, herein called "EnCana";
<br />WHEREA,l', OWNP.R represents [hat they are the surface owners and in
<br />possession of an interest in part or all of the surface estate for the following described
<br />lands in Weld County, Colorado, said land herein called "LANDS", to wit:
<br />Townshia 21Vurth Ran¢e 68 West. 6th P.M.
<br />Secliap az~ sw-vv~~
<br />WHF,REAS, EnCana has or will acquire certain leasehold interests in the oil end
<br />gas mineral estate in the LANDS and proposes to conduct drilling and subsequent
<br />production operations on the LANDS; and
<br />WHBREAS, OWNER and EnCana desire [o minimize any surface damage to the
<br />LANDS and to reach an agreement regartling such surface damage.
<br />NOW,'CH$REFOR.E, in consideration of ten dollars and other valuable
<br />consideration, the sufficiency of which is hereby acknowledged, the parties agree as
<br />Ibllows:
<br />L Prior to commencement of drilling operations, EnCana shall pay OWNER the
<br />tirllowing sum as full settlement and satisfaction of all damages growing out of, incident
<br />• to, or in connection with the usmd and customary exploration, drilling and completion
<br />operations, unless otherwise specifically provided herein:
<br />Twu Thousand Five rlundmd Dollars (~Z,SW.W) Ibr the wellsite located on the
<br />LANDS in which OWNER owns the surface estate, together with any lands used for
<br />roads purposes, pipelines and [towlines in connection with the wellsite.
<br />if, by reason direc0y resulting from the operation of EnCana, there is damage to
<br />crops, real or persona[ property upon the LANDS which is not associated with the usual
<br />and customary drilling operations, such as (but not limited to) damage to livestock,
<br />structures, buildings, fences, culverts, cement ditches, irrigation systems, and natural
<br />water ways, such damage will be repaired or replaced by EnCana, or EnCana will pay
<br />reasonable compensation to OWNER for such additional damage.
<br />D. If requested by OWNER, prior to heavy equipment operations on each
<br />wellsite, EnCana's representative will meet and consul[ with OWNER for
<br />OW NER's representative) as to the location of the wellsite, access roads,
<br />and ^owline.
<br />E. In conducting oprr:rtioos un the LANDS, EnCana shall;
<br />A.
<br />Limit the size of each wellsite to approximately 375 feet by 350 (eat
<br />during the original drilling and completion operations and shall limit
<br />the future site to be no more than 1/8 acre during other periods. The
<br />existing access road will be used for [he drilling operations and
<br />permanent access until OWNER has constmeted new roads fur the
<br />luture lakes and subdivisions (which EnCana agree
<br />development of the properties covered under the or
<br />EnCana shall have the right to access their wellsite
<br />which shall he a minimum of 30 feet in width.
<br />
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