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FROM : Micl.ael L. Blake, P. C. PNONE NO. 3037907219 Feb. 26 200a 00:26RM P2 • peanits, licenses and approvals for tlrc PBcA wo,ic wtd the Sire Reclamation. Owner shall pay directly, or immediately reimbur.~ Texas Tea far. all costs of the P&,A wont. Such ursu of the P&A work shag be competitively bid, and the panics herdo shall agree in advance of the P&A work on the contractor to be used for the PBcA work. Texas Tea shall pay the cost of the Site Reclamation. Notwithstandirtglhe foregoing. in no event stall Taas Tea be required 6u begin the P&A stork prior to February 28,2005. 3. Relocation of Fa 'lam hies. In the even[ that i[ is dete[mu~ed by FARFRUMWURKIN's engineers that an oil amc! gas collection line or rwd needs ro be relocated or ten oil and gas well needs to be elevated to accommodate FARFRUMWtIRKIN reservoirs and gravel mine, FARFRUMWURKIN will give Texas Tea not less than one (1) year s writ[m entice of its intention to do so and not less ttmn thirty (30) days written entice of the beginoiag of any strclt work. The parties agree to coapc[ate in scbcdtrling and the scope of any wch wrotk. Any such work desires! to be perfomred by FARFRUMWtJRKIN shall be done az FARFRtJMWURKIN's sole wst and eapense tbiough a qualiSed rnrr^ractor selected by FARFRLIMWURKIN with Texas Tea's approval, such approval not being uoscasonable withheld. Any teplacernen[ oil end gas collection line shall be of blab strength poly pipe or other ma~ial apprtrved by Tares Tea equal to or greater than the diameter and strength of the arlleuion line it replaces. In the event that any roads eae reloeated, FARFRLJb[g7URKiN shall keep reawrmble access open to a~ of Texas Tea's existing wells, and shall replace soy road moved with a mad of similar quality to the road rep)acad. FARFRUMV/IJRKIA shall restore the gotmd surrounding any elevated wells to their p~exi.sting condition and [[place any co>icdod or damaged ptpes or fittings at the well head with new parts to prevem futttrc failure of any well that is [{[vested. • 4. rvvuirs. Taus Tea agrees w not contest the applicatia~n of FARFR[IMVIRJRKlN fora 112 Mining Pemrits or other applicable permits as required to conctrrx;t its reservoirs on the Propcty. The botm~ries of any reSeavoir ~ttcted by FA1tFRiJMw+URKIN shall not be located any closes that a minimum of one h~adred.frfty (150) feet from any of Texas Tea's wells as clover than those distances from any of Texas Tea's oil std gas facilities oa the Property as allowed by applicable state and federal stattxes and/or regulations. 5. Ownership of~'~~. 77a: Well, the Lease and all equipmen[ at the Well shall remain the sole property of Texas Sea. 6. Qlieration of the Well Prior m the P&A work. Texas Tea may continue to operate and maintain the Well in a tea.sonable operaWr manner and retain all pmcceds therefrom until the beginowing of the PdtA work in.accordaace with reoogniaed industry standaeds and in full compliance with applicable ]eases laws; roles and regdatioas of appropriate local, state, and federal govemmenral authorities. StrL operation and maintenance of the Well shall not unreasonably inerfere with Owner's, or its successors or assigns, trse of the surface a~ su)>srtrficc of the Lands, and Owner's use of the surfaces and subsurface of the Lands shall trot tmreasonebly interfere with Texas Teas operation and maintenance of the Well. • ~'~ /~~ '~ .~