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1. AREAS RESERVED FOR THE EXISTING WELLS AND FUTURE WELLS; <br />WELL LOCATIONS. <br />Subject to the terms and conditions hereof, Journey Ventures, LLC shall set aside and <br />provide to Petroleum Development Corporation that portion of the Property hereinafter <br />referred to as the, Oil and Gas Operations Areas, such areas being depicted on Exhibit A <br />attached hereto. The Oil and Gas Operations Areas are to be made available to Petroleum <br />Development Corporation in their present condition for any oil and gas operations, <br />permitted by the Lease, conducted by Petroleum Development Corporation in connection <br />with any Well, including, but not limited to, drilling and production activities, workovers, <br />well deepenings, recompletions, fracturing and replacement wells. All Wells will be <br />limited to the Oil and Gas Operations Areas shown on Exhibit A, unless this Agreement <br />is amended by consent of Journey Ventures, LLC and Petroleum Development <br />Corporation. Except for the Oil and Gas Operations Areas, and the access roads and <br />Petroleum Pipeline Easements (as defined below) as provided in this Agreement, <br />Petroleum Development Corporation shall not occupy the surface of the Property except <br />in the event of an emergency or for reasonable incidental, temporary and non-damaging <br />activities, for which Petroleum Development Corporation shall be strictly and solely <br />responsible for any damages that may occur to the Property. Petroleum Development <br />Corporation shall comply with its Lease and any applicable laws and regulations in <br />connection with its operations. <br />Subject to the Lease terms, Petroleum Development Corporation shall have the right to <br />drill Future Wells within the Oil and Gas Operations Areas, including horizontal and <br />directional wells that produce from and drain the Property and/or lands other than the <br />Property provided they do not interfere with the Journey Ventures Pit. As part of the <br />consideration for this Agreement, Journey Ventures, LLC hereby waives its right to, and <br />covenants that it shall not protest or object to any such exception location or application <br />for same by Petroleum Development Corporation. Petroleum Development Corporation <br />shall not otherwise have the right to drill new wells on the Property. The wellhead <br />location for any Future Well drilled from the Oil and Gas Operations Area shall not be <br />closer than 150' from the edge of the Oil and Gas Operations Area. <br />2. EXTRACTION IN VICINITY OF OIL AND GAS OPERATIONS AREAS; <br />SETBACK REQUIREMENTS. <br />Petroleum Development Corporation and Journey Ventures, LLC agree that Journey <br />Ventures, LLC may mine the gravel within each of the Oil and Gas Operations Areas in <br />accordance with the terms of this Agreement. In the event that Journey Ventures, LLC elects to <br />mine the gravel in an Oil and Gas Operations Area, Journey Ventures, LLC shall notify <br />Petroleum Development Corporation in writing 60 days prior to commencing mining operations <br />within the Oil and Gas Operations Areas and shall first place temporary concrete barriers around <br />the Existing Wells as directed by Petroleum Development Corporation prior to commencing any <br />mining operations on the Property. Journey Ventures, LLC shall conduct its mining operations in <br />the Oil and Gas Operations Areas as quickly as commercially reasonably practicable. Journey <br />Ventures, LLC shall conduct it mining within the Oil and Gas Operations Area by excavating pie <br />shaped wedges of gravel and aggregate and thereafter backfilling and compacting the area with <br />Page 2 of 10 <br />11