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development of their respective interests in the Property, such rights and obligations to be <br />binding upon the parties and their successors and assigns. <br />Now Therefore: <br />In consideration of the mutual covenants contained herein, and other good and valuable <br />consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as <br />follows: <br />1. OIL AND GAS OPERATIONS AREAS. <br />a. Surface Owners/Lessees shall set aside and provide to Petroleum Lessees those <br />portions of the Property hereinafter referred to as the "Oil and Gas Operations Areas," such areas <br />being depicted on Exhibit B attached hereto, nine of which are the locations for the Existing <br />Wells and the other one of which is generally located in the drilling window in the center of the <br />NW/4. The Oil and Gas Operations Areas shall be made available to Petroleum Lessees for all <br />operations conducted by Petroleum Lessees in connection with any Well, including, but not <br />limited to, drilling and production activities, workovers, well deepenings, recompletions, <br />fracturing and the drilling of twinned and replacement wells. The locations for the Existing <br />Wells and the locations of all Future Wells shall be within the Oil and Gas Operations Areas, and <br />the Oil and Gas Operations Areas shall include the areas shown on Exhibit B which are <br />generally in the shape of an oval which includes a central area around proposed and existing <br />wells and a radius around the central area of two hundred (200') feet, except as may be otherwise <br />reflected on Exhibit B. <br />b. Petroleum Lessees shall also have the right to locate, build, repair and maintain <br />tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and <br />production equipment and facilities within the Oil and Gas Operations Areas ("Production <br />Facilities.") <br />C. Petroleum Lessees shall have the right to drill Future Wells and multiple Wells <br />within the Oil and Gas Operations Areas, including horizontal and directional wells that produce <br />from and drain the Property and lands other than the Property; provided that such lands are <br />pooled with lands within all or any portion of the Property. <br />d. As part of the consideration for this Agreement, Surface Owners/Lessees hereby <br />waive their right to, and covenant that they will not protest or object to any exception location or <br />to any other application to drill, redrill, deepen or recomplete any Well on the Property, so long <br />as the Well and related Production Facilities are located within an Oil and Gas Operations Area. <br />e. Petroleum Lessees shall drill Future Wells as close to the center of the Oil and <br />Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas <br />Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership <br />of the oil and gas horizons, among other matters. ASCI shall not stockpile or stage mined <br />materials within a radius of 150 feet from either the Existing Wells or the outside boundaries of <br />the Oil Gas Operations Areas. <br />8711\23\1008866.2