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3o3z73sszo FROM Micwel L Blake. P. C. 3032739620 p.2 PHONE ND. 3037907219 Feb. 26 200a 0B=26FlM P2 pemtits, licertsea and approvals ftrr the P8A work mtd the Sire Reclamation. Owner stall pay directly, trr immediately reimburse Texas Tea for, all costs of the P&A wodc. Such costs of the PBrA work shall be competiti veiy bid, and the parties hereto shall agree in advance of the P&A work on the comxaclor Lo be used fur the PdcA work. Texas Tea shall pay Otc cost of the Site ReclamatiorL Notwithslsodutg the fo[egoirtg. in ao event shell Texas Tea be requited to begin the P&A work prior to Felavary 28,2005. 3. Relocation of Facilities. In the event that it is determined by FARFRi1MWURICIN's engineers that ap oil and gat collection line or toad needs to be relocated or an oil and gas well needs to be elevated to accommodate FARFRUMWURKIN reservoirs a~ gravel miac, FARFRUMWURKIN will 9ve Texas Tea not less than oce (1) year s written Mice of its intention to do so and not less tYata thirty (30) days written notice 'the bcginpipg of any sttch work. The parties agree to cooperate in scheduling and the scope of any such wodc. Any such worts desired to be perforated by FARFRUMWURICIN shall be done ac FARFRUMWURKIN's solo wst and capmse through a qualified wrtractor selceted by FARFRUMWtJRK1N with Texas Tea s approval, such approval not being uraeawnable withheld. Any teplacetttent nil and gas collection tine shall be of high shsngth poly pipe or oilter matJetial approved by Texas Tea Mual to or greats t6~an the diametc and sirengW of the collection lip it replaces. In the evtat that any toads tare relocated, FARFRUIIAVV[JRlCIIV shall keep reasvnabh access opea w a~ of Texas Tea's existing wells, and shall replace any road moved with a road of similaz quality to the road replaced. FARFRUMWURKIN shall zeuore the goumd sutrotmding any elevated wells to their pre-existing caodition and replace any corroded or damaged pipes or fittings at the well head with new parts to prevem futtac failure of any well that is elevated. 4. 12,esecvoirs. Texas Tea agrees to not cooust the application of FARFR[JMWiJR1CIN fora 112 Mining Permits or outer applicable permiss as requited to construct its reservoirs on the Property. The boundaries of any reservoir Eby FARFRTJMVVlJR1CIN shall rot be located soy closer that a p+inirnttm of o~ hurdnd-fdty (150) fcet from a~ of Texas Tea's wells or closet than those distaaces from any of ?rotas Tea's m'1 and gas facilities on the Property as allowed by applicable state and federal statutes and/or regulations. 5. SZwpers ' of Properties. The WeU, the Lease and all equipment at the Wc-1 shall remain the sole property of Texas Tea. 6. Operation of the Well Prim to the P~AA work. Texu Tea may continue to operate and maintain the Well in a reasonable operator ntamter and retain all proceeds therefrom until the begimrimg of the P&tA work in aeceadaace withreeogtized iodtu-ny stertdacds and in full compliance with applicable leascs$laws, nrles and regdatioas of appropriate local, state, and fcdera] govemmenral authorities. Such operation trod maintenance of the Well shall rat unreasonably ioDerferc with Owner's, or its successors or assigas, use of the surface and subsurtacc of the Lands, and Owtkr's use of tiro surface and subsurface of the Lands shall not tmratsonabty interfere with Texas Tea's operation and maintenance of the Well. /~f _ / ( ~~