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<br />' a' ~~~ B 1313 REC~265157 10/03/91 13:38 15.00 3/003
<br />p w F 0353 H1ARY ANN FEUERSTEIN CLERK 6 REC DER WELD CO, CO
<br />EXHIBIT 'A'
<br />Attached to that certain Oil and Gas Lease dated May 30, 1991, by and between David 0. Dersham
<br />and David D. Dersham as Conservator of the estate and affairs of William D. Dersham, as
<br />Lessor, and Batas Oii, Inc., as Lessee.
<br />1. J3ovalty. Notwithstanding any recitation of one•elghth (1/8) royalty in This lease, all royalty
<br />payments for this lease shall hereby be deemed to be 15.0% royalty, and the lease shall have ellect
<br />Just as If 15.0% were printed In the printed lease to which this Exhibit 'A' is attached wherever 'one-
<br />elghih (1/8)' Is printed.
<br />2. Control. The provisions of this Exhibit 'A' shall control over the provisions of the printed lease to
<br />which II Is attached.
<br />3. Drilling Restrictions. Drilling shall only be allowed on the lands covered by this lease that are north
<br />and east cl the existing b~•Ildings and corrals.
<br />4. Fencln°°. Lessee agrees to fence elf all equipment Irom the rest of Lessor's properly. Lessee shall
<br />Install a gale al the point of access onto Lessors property, and keep It locked.
<br />5. Damages. Lessee shall pay the owners of the land (ol which Lessor Is one) the sum of $2000 for
<br />surtace and crop damages for the drllislte used In the drilling and completion of each well drilled on the
<br />land, prior to commencing drilling operations. This amount shall be full settlement for crop and surface
<br />damages not to exceed three acres disturbed during drilling and completion operations, and for the area
<br />occupied by the production equipment. Any additional acreage damaged shall be paid for separately by
<br />the Lessee, and any other damage shall be paid for by Lessee, Including all general and specific damages
<br />caused by the operations, Including but not limited to damages to tangible personal property, real
<br />property, fences, Ilxtures, or other Improvements, domestic and irrigation wells, pumps, and damages
<br />to the water table such as contamination of owners wells, and any and all other damages upon
<br />completion of the well, and also at such other time as damages occur. In addition, Lessee shall pay the
<br />owners of the land $.50 per foot for all underground lines Installed beyond 200' Irom the wellhead of
<br />any well drilled on the land, and Lessee shall pay for grass seed for reseeding the area disturbed by its
<br />drilling operations, if so requested by the owners of the land.
<br />6. Release Of Llabllity. Lessee releases Lessor, and agrees to hold Lessor harmless Irom and
<br />Indemnity Lessor against, any damages, Injury, or loss suffered by Lessor, Lessee, or any third party
<br />as the proximate result of Lessee (including Lessee's agents, employees, contractors, ollicers,
<br />Invitees, or guests) presence upon the land, operations upon the land, or the use or presence of
<br />Lessee's personal property, fixtures, equipment, lacllitles, or Improvements upon the land or the
<br />wellsite, whether or not occasioned by the act, omission, or negligence of Lessee. Lessee will keep a
<br />minimum of $1,000,000 of liability Insurance In torte, covering Its operations on the land. Lessee
<br />shall provide prool of Insurance to Lessor upon Lessor's request.
<br />7. Location Of Equipment. Lessee shall consult with Lessor prior to located the access road, wellsite,
<br />underground Ilnas, and equipment for any well drilled on the lands. II more than one well is drilled on
<br />the lands, Lessee shall tontine the oil tanks to one location, unless Lessor approves otherwise. Lessee
<br />shall notify Lessor a minlmum of one week In advance of the start of drilling operations.
<br />8. Monthly Report. Rovallles. Lessee shall provide Lessor with a monthly report giving the exact
<br />quantities of oil and gas produced and sold from any well located on the lands. Upon Lessor's request,
<br />Lessee shall provide Lessor with copies'o( the Operator's Monthly Production Report filed by Lessee
<br />with the Colorado OII and Gas Conservallon Commission. Except in the case of disputed title to Lessor's
<br />minerals, Lessee shall pay Lessor the full royalty due Lessor for a given month's oil and gas production
<br />within 60 days of the last day of the month. Lessee shall be liable to Lessor for interest at the rate of
<br />prime plus 3% for any late payment of royalties after 60 days.
<br />9. Gravel Mlnina. Lessee shall not object to or InteAere with the mining of gravel from the lands by
<br />Lessor or Lessor's agents or assigns, except for the area underneath Lessee's equipment, and the
<br />minlmum setbacks required by law.
<br />10. Culverts. Lessee shall repair any culverts, ditches or underground water lines damaged by It's
<br />activities, and shall Install new culverts where necessary to protect ditch crossings or existing
<br />drainage on the land.
<br />11. E11S. Lessee shall haul the mud out of the mud pit as soon as the drilling is completed, and have it
<br />backfilled within 60 days alter the irac job is done, unless wet weather makes it necessary to leave
<br />the pll to dry longer. Lessee shall pile topsoil separately from underlying soil when digging the pit, and
<br />Till In the pit to grade wlth.ihe underlying soil belore replacing the topsoil.
<br />12. Power Lines. No power lines are to be installed above or below the ground without prior approval
<br />by Lessor.
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