2011-04-29_PERMIT FILE - M2011001 (14)

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and Gas Operations Areas shall not be used by Noble to drill wells with bottom hole locations off of either the Leased Premises or lands within spacing units also including the Leased Premises or portions thereof, or to install Production Facilities that service wells off of the Leased Premises without the prior written consent of Lafarge. I As part of the consideration for this Agreement, Mining Parties hereby waive its' rights to, and covenants that it will not protest or object to, any exception location or application to drill, redrill, deepen or recomplete any Well on the Property, so long as the Well is located within an Oil and Gas Operations Area and does not conflict with the terms of this Agreement. e. Noble shall drill future Wells as close to the center of the Oil and Gas Operations Area as is practicable, given the location of other Wells within the Oil and Gas Operations Area, geologic, regulatory and technical concerns, and any segregation of ownership of the oil and gas horizons. f. Mining Parities shall not stockpile mined materials within a radius of 150, feet from existing Wells without first consulting with and obtaining written approval from Noble. 2. Extraction of Sand and Gravel in Vicinity of Oil and Gas Operations Areas: Setback Requirements. Mining Parties reserves the option, in accordance with the terms of this Section 2, to mine the gravel within those Oil and Gas Operations Areas wherein, at the time of Mining Parties' election to mine gravel, there are no existing Wells. a. In the event that Mining Parties elect to mime the gravel within an Oil and Gas Operations Area, Mining Parties shall notify Noble in writing sixty (60) days prior to commencing mining operations. In the event Muting Parties elect to mine gravel in an Oil and Gas Operations Area that has an existing Well or Wells, Mining Parties shall conduct mining within the Oil and Gas Operations Area by excavating pie shaped wedges of graver. Mining Parties will thereafter backf-ll and compact the area with overburden or other suitable material prior to excavating the next pie shaped area provided, however, in no event shall Mining Parties 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. b. Excavation, including the identification of flowline and pipeline depths, within the Oil and Gas Operations Area will be coordinated with all Parties to avoid conflict between surface and subsurface exploration and to ensure there are an appropriate safety plan and interim emergency procedures. C. In the event that Noble intends to drill a Well within the Oil and Gas Operations Area, it shall give written notice to Mining Parties and meet at the site with Mining Parties, as required by Colorado Oil and Gas Conservation Commission (" COGCC") rules and regulations, and the parties shall coordinate mining operations with oil and gas operations. In the event that Noble notifies Mining Parties of it's intent to conduct operations within an Oil and Gas Operations Area that Mining Parities are conducting mining operations, Mining Parties shall conduct and complete its mining operations within the Oil and Gas Operations Area as quickly as is reasonably practicable. Noble shall have priority to conduct its oil and gas operations within the Oil and Gas Operations Area such that they may require Mining Parties to temporarily cease mining operations or adjust the timing and location of such operations within the Oil and Gas Operations Area as necessary to conduct their oil and gas operations in a safe and efficient manner. -2-