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02/19/2008 12:58 3038576789 <br />JUL-11-'96 08:21 PM K-CROUCH <br />14-06-2008 09:10am Ffon-NAIL IRWIN CORP <br />MERIT ENERGY <br />444 4513 <br />+9703525294 <br />PAGE 03/11 <br />r.ea <br />T-Sis o.66001 was <br />5%g, wedges of and, Gavel and aggregate and thaeuRer 16"kfilling and compac ang the <br />area ,ittb,0v =burd= or other suitable mate ial prior to excavating the next pie chap ?d area: <br />provided, however, that in no event shall Hail-bvAn mjae wi&ilm 75 feet of any, WS6118 <br />wellhead or within 50 feet of awl production facilities ad provided forther that ir?1 o event <br />shall more then me qua' circle segmm tt of the pie shape be excavated at any a u time. <br />Operator's operations will be coordinMd with, Merit in A mutually acceptable ten nner so <br />as to avoid conlllct Merit's an and gas opetatiom and to emm tham is an am ropdate <br />safety plan and interim emergency procedures. Operator will bear 01 costs assocla .ed with <br />errament or temporary rerouting =4 replace rant of <br />the mining operation, iucludin8 p <br />access roads, and flow lines and utility lines in order to prevent unnecessary intern ptiou of <br />production hom any affected well. In addition, Operator and its swacessor and assii ms shall <br />indemrd* and hold Merit ha rdess from any and all damage, loss and liability, it cludtng <br />attorney's fees incurred as a result of Operator's operations within the Well Area. Subject <br />to the 75 and 50 setbacks provided above, Operator shalt at all times be entitled to mine up <br />to tbe perimeter of the Well Areas regardless ofwhece Merit my have located its ro ells and <br />surface equipment within said aveas. <br />3. ACCESS. <br />a, surface Owner shall at all times provide to Merit no less than a 20 foot wide ease mmt for <br />nonexclusive access to the We11 Areas in the locadons, <br />of et Jzt f Holding, Nbit ar at ` es v <br />the Well Areas may be cbanB? by taut W "'ent <br />All costs and expo ofihe relocation shall be bomc by Operator. <br />b, Operator shall u lenWn and kcep any access jointly used by Operator and Mc6 in tood <br />condition and repair, however, If Merit caums damagc to a toad. Merit agrees to x0f ti7 <br />repair any damage which it caused. Neither Merit nor operator shall untie asonaliy <br />interfere with the use by the othmr paM of access roads. <br />4. BASS AND EQI EMENT (PRODUCTION PACI L"S). <br />tanlo, separators, dehydta?l coinkrmeseas Ind othet <br />Merit stash emote any necessary <br />cqdlm=t reasonably apProPIIate fen the operecion and predtutiton of the wells t &Wn the Surface>racilides Areas labeled as such on Exhibit A. but dwi not otherwise be a milled to <br />use the surfact of the Property for mob facilities. <br />FLOWLU .S AND PIPELVIES- <br />es that the flowlines sold pipelines to and frond the Well Areas shall bI installed <br />a Merit afire ed in E?bit A. Merit shall not be othenwi: a entitled <br />approximately at the location sp« ifi and flowlf n? shall he 1a sated at a <br />to use the Property for sash fatuities All p?lug Faded elevation The co lsttuetion <br />s.&.e depth of approximately 48 inches from the thfWal e sole, se of A (Brit or its <br />and braying of f lowlines and pipelines shall be as the cast and expense <br />gas pwch mr.