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<AZ1 KerrNtGee <br />Kerr-McGee Oil & Gas Onshore LP <br />1999 Broadway, Suite 3700, Denver, Colorado 80202 <br />September 19, 2007 303-296-3600 - Fax 303-296-3601 <br />VIA FACSIMILE A ND U.S. MAIL <br />Carma Bayshore LLC <br />Tyler Packard <br />188 Inverness Drive West, Suite 150 <br />Englewood, CO 80112 <br />Re: CARMA <br />Township 3 North, Range 68 West of the 6th P.M. <br />Section 35: NE/4 & SW/4 <br />Weld County, Colorado <br />Dear Mr. Packard: <br />This surface agreement will confirm and set forth the terms of an agreement that you and I <br />reached in our conversation of September 11, 2007 concerning the operations of Kerr-McGee Oil <br />& Gas Onshore LP ("KMG") on your property. We agreed to execute this surface agreement to <br />allow KMG to move forward with its oil and gas operations while we negotiate a more detailed and <br />definitive surface use agreement.. The promises exchanged in this surface agreement are valuable <br />consideration and shall be recorded as a memorandum to the agreement And attached and made <br />part of this agreement is Exhibit "A" showing the locations as described in below. Accordingly,: the <br />parties agree to the following: <br />1. KMG may not drill any vertical well(s) on your property. <br />2. KMG may drill eight (8) directional "318a-e" wells, entirely at its own expense, <br />from surface locations at: <br />CARMA 21-35 <br />CARMA 22-35 <br />CARMA 23-35 <br />CARMA 24-35 <br />Center of the NE/4 of Section 35 <br />NWSW of Section 35 <br />Center of the SWA of Section 35 <br />Center of the NE/4 of Section 35 <br />CARMA 32-35 NWSW of Section 35