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[Gravel Company] will not locate any lot line, building, or structure within any Oil and <br />Gas Operations Area. [Gravel Company] understands and acknowledges that the COGCC has <br />rules and regulations that apply to the distance between a wellhead and public roads, production <br />facilities, building units and surface property lines, among other things. In order to give full <br />effect to the purposes of this Agreement, [Gravel Company] hereby waives its right to object to <br />the location of any of KMG's facilities on the basis of setback requirements in the rules and <br />regulations of the COGCC, as they may be amended from time to time. [Gravel Company] <br />further and similarly waives its right to object to any other state or local setback requirements or <br />other requirements or regulations that are or become inconsistent with this Agreement or that <br />would prohibit or interfere with the rights of KMG, its successors and assigns, to explore for and <br />produce the oil and gas in accordance with this Agreement. KMG or its successors and assigns <br />may cite the waiver in this paragraph in order to obtain a location exception or variance under <br />COGCC rules or from any other state or local governmental body having jurisdiction. [Gravel <br />Company] agrees not to object to the use of the surface in the Oil and Gas Operations Areas so <br />long as such use is consistent with this Agreement and [Gravel Company] will provide KMG or <br />its successors and assigns with whatever written support they may reasonably require to obtain <br />permits from the COGCC or any local jurisdiction. <br />3. GATHERING LINES AND FLOWLINES. <br />Subject to the limitations hereinafter described, KMG has a continuing right and <br />entitlement to own, operate, maintain, repair and replace all existing and future flowlines, <br />gathering lines and other pipelines that may be necessary or convenient to its operations on the <br />Property ("Pipelines"). The construction and burying of additional Pipelines shall be at the sole <br />cost and expense of KMG or its gas purchaser. <br />Although this Agreement is intended to confine the placement of the Pipelines to certain <br />specified locations within the Property, nothing herein shall be construed as a limitation on <br />KMG's ultimate right to make all necessary well connections to any Existing or Future Well. <br />Specific locations have been designated on Exhibit A for the location of the Pipelines <br />("Petroleum Pipeline Easements").The Petroleum Pipeline Easement shall be fifty feet (50') in <br />width during construction, installation or relocation operations and otherwise reduced to thirty <br />feet (30') in width for post-construction usage. <br />[Gravel Company]' development plans anticipate that a roadways will cross over <br />Existing and Future Pipelines. [Gravel Company] agrees to abide by the General Guidelines for <br />Design and Construction Activities On or Near Kerr- McGee Gathering LLC and Kerr - <br />McGee Rocky Mountain Corporation Pipelines and Related Facilities revised 3-2004. In <br />particular, [Gravel Company] shall maintain a minimum of 48 inches and not more than 72 <br />inches of cover over all Pipelines during any of [Gravel Company]' operations on the Property. <br />KMG may install and maintain markers on its Petroleum Pipeline Easement. KMG shall mark <br />its flowlines at all locations reasonably requested by [Gravel Company]. <br />[Gravel Company] will not allow any extraction to occur, commencing at the surface of <br />the original ground, closer than 25 feet from any Pipeline of KMG unless a soils stability report <br />prepared by an engineer licensed in the state of Colorado indicates that a lesser set back will be <br />adequate for preservation of the integrity of said pipeline and provided that upon completion of <br />such extraction [Gravel Company] shall back fill and level the area within 25 feet from any <br />12