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11/14/2006 15:16 FAX 2815444544 SHELL OIL LEGAL <br />(14) The Lessee may be. required as part of plan <br />approval to conduct operations in compliance with <br />applicable sections of 43 C:FR Part 3160, Onshore Oil <br />and Gas Orders and 43 CFR Part 3590 which will be <br />identified as part of the plan approval document. <br />Section 9. Operations on the Leased Lands <br />(a) The Lessee shall conduct all operations under this <br />lease in compliance with all applicable Federal, State <br />and local statutes, regulations, and standards, <br />including those pertaining to water quality, air <br />quality, noise control, threatened and endangered <br />species, historic preservation, and land reclamation, <br />and orders of the authorized officer (written, or if <br />oral, reduced to writing within ten days). The Lessee <br />shall employ best management practices to minimize <br />impacts to other resource values. <br />'(b) The Lessee shall avoid, or, where avoidance is <br />impracticable, minimize, and where practicable <br />correct, hazards to the public health and safety related <br />to its operations on the Leased Lands. <br />(c) Lessee shall carry on all operations in <br />accordance with approved methods and practices as <br />provided in the operating regulations designated as <br />applicable under section 8 above and approved <br />operations plan. Activities will be conducted in a <br />manner that minimizes adverse impacts to the land, <br />air, water, cultural, biological, visual, and other <br />resources, including mineral deposits not leased <br />herein, and other land uses and users.. <br />(d) The Lessee shall comply with all applicable <br />state and Federal laws. <br />e) The Lessee shall conduct all operations in a <br />manner that will not unreasonably interfere with <br />operations that have prior existing rights. <br />Section 10. Water Rights <br />All water rights developed on the lease by the Lessee <br />through operations on the Leased Lands shall <br />immediately become the property of the Lessor. As <br />long as the lease continues, the Lessee shall have the <br />right to use those water rights free of charge for <br />activities under the lease. <br />Section 11. <br />Where in situ i <br />shale oil, the Y <br />opening for su <br />boundary line <br />permission of, <br />officer. <br />Section 12. <br />The Lessee she <br />representative c <br />(a) To inspect <br />underground in <br />equipment, and <br />operations and <br />lease; and <br />(b) To copy a <br />records Dertaini <br />Section 13. <br />(a) The Lesst <br />form as the late <br />days after the e <br />report covering <br />amounts and q' <br />removed and s, <br />production put <br />amount in the: <br />price received <br />sack detail as t <br />file with the pt <br />days after the c <br />evidence of od <br />production. <br />(b) The Less <br />tames and in st <br />maps, photogr <br />documents req <br />(c) The Less <br />environmental <br />to this lease. <br />Section 14. <br />4036/070 <br />by In Situ Methods <br />thods are used for the production of <br />see shall not place any entry, well, or <br />operations within 500 feet of the <br />the Leased Lands without the <br />unless directed by the authorized <br />l permit any authorized officer or <br />the Lessor at any reasonable time: <br />the Leased Lands and all surface and <br />provements, works, machinery, and <br />all books and records pertaining to <br />urveys or investigations under this <br />make extracts from any books and <br />to operations under this lease. <br />and Maps <br />shall submit to the Lessor in such <br />may prescribe, not more than 60 <br />i of each quarter of the lease year, a <br />gat quarter which shall show the <br />lity of all products and by-products <br />i from the lease; the amount used for <br />uses or unavoidably lost, and the <br />gage. The report shall also show the <br />r all products or by-products sold, in <br />Lessor prescribes. The Lessee shall <br />ier office of Lessor, no later than 30 <br />ective date thereof, any contract or <br />r arrangement for sale or disposal of <br />shall prepare and furnish at such <br />form as the Lessor may prescribe, <br />is, reports, statements and other <br />shall conduct surveys and monitor <br />fects as specified in the Addendum