2009-04-27_REVISION - M2004009 (7)

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compacting the area with overburden or other suitable material prior to excavating the next pie shaped area; provided, however, in no event shall ASCI mine within 90 feet of an Existing Well or Production Facility, and provided further, that in no event shall more than one quarter circle segment of the pie shape be excavated at any one time. d. Excavation within the Oil and Gas Operations Areas will be coordinated with Petroleum Lessees in a mutually acceptable manner so as to avoid conflict with Petroleum Lessees' oil and gas operations and to ensure there is an appropriate safety plan and interim emergency procedures. ASCI will bear all costs associated with such mining operations, including permanent or temporary rerouting and replacement of access roads, and flowlines and utility lines in order to prevent unnecessary interruption of production from any affected Well. In addition, ASCI shall indemnify and hold Petroleum Lessees harmless from any and all damage, loss and liability, including attorney's fees, incurred as a result of ASCI operations within an Oil and Gas Operations Area. e. Except as otherwise specifically provided herein, Surface Owners/Lessees will not locate any lot line or any building, structure, or other improvement within any Oil and Gas Operations Area. Surface Owners/Lessees understand and acknowledge that the COGCC has rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. In order to give full effect to the purposes of this Agreement, Surface Owners/Lessees hereby consent to and waive their right to object to the location of any of the Wells or Production Facilities on the basis of the setback requirements in the rules and regulations of the COGCC, as they may be amended from time to time. Surface Owners/Lessees further and similarly consent to and waive their right to object to any other state or local setback requirements or other requirements or regulations that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of Petroleum Lessees, their successors and assigns, to explore for and produce the oil and gas in accordance with this Agreement. Petroleum Lessees or their successors and assigns may cite the waiver in this Section 2.e. in order to obtain a location exception or variance under COGCC rules or from any other state or local governmental body having jurisdiction. Surface Owners/Lessees agree not to object to the use of the surface within the Oil and Gas Operations Areas, so long as such use is consistent with this Agreement, and Surface Owners/Lessees will provide Petroleum Lessees, or their successors and assigns, with whatever written support they may reasonably require to obtain permits from the COGCC or any local jurisdiction. 3. GATHERING LINES AND FLOWLINES. Subject to the terms included in this Agreement, Petroleum Lessees have a continuing right and entitlement to own, operate, maintain, repair and replace all existing and future flowlines, gathering lines and other pipelines that may be necessary or convenient to their operations on the Property ("Pipelines"). The construction and burying of Pipelines shall be at the sole cost and expense of Petroleum Lessees or their gas purchaser. Although this Agreement identifies the locations for existing and future pipelines and pipeline easements, nothing herein limits the rights of Petroleum Lessees to make well connections to Wells at other locations in the event of unforeseen circumstances due to mining operations, water storage or reservoir operations, topographic matters and any other circumstance that Petroleum Lessees could not 8711\23\1008866.2