HomeMy WebLinkAbout914172ACCESS ROAD J ND DRILL SITE AGREEMENT
THIS AGREEMENT is made and entered into, effective as of the
1st day of June, 2005, by and between Bear River Land Grazing
Company, A Wyoming Corporation whose address is c/o Edward M. Bown,
1015 East 3900 South, Salt Lake City, Utah 84124 -1110 (hereinafter
referred to as "BEAR RIVER and Rocky Mountain Gas, Inc., a
Wyoming Corporation, whose address is 877 North 8` West, Riverton,
Wyoming 82501, (hereinafter referred to as "RMG
W I T N E S E T H:
THAT WHEREAS, Bear River is the owner of the surface of the
NE1 /4 of Section 21, Township 19 North, Range 117 West, 6 P.M.,
Lincoln County, Wyoming; and
WHEREAS, RMG has requested Bear River to grant to RMG a non-
exclusive right to utilize a certain existing access road 20 feet
wide and 1,584 feet or 96 rods in length, and to construct and use
a drill pad not to exceed two (2) acres in size and area, which
road and drill site are located on the NE1 /4 of said Section 21
particularly identified and shown on Exhibit "A hereto and by
this reference specifically made a part hereof and hereinafter
collectively sometimes referred to as the "Premises and
WHEREAS, said Premises are required by RMG in connection with
its oil and gas drilling and producing operations involving the
RECEIVED 12/5/2005 at 2:04 PM
RECEIVING 914172
BOOK: 606 PAGE: 665
JEANNE WAGNER
LlN ;OUNTY CLERK, KEMMERER, W`,'
r� r
Anadarko NE- 21- 19 -117A Well located in the NE1 /4 of said Section
21, Township 19 North, Range 117 West, 6th P.M., Lincoln County,
Wyoming.
WHEREAS Bear River and RMG desire to enter into this
Agreement, in accordance with the terms and conditions hereinafter
set forth.
NOW, THEREFORE, in consideration of the Premises, and the sum
of Ten Dollars ($10.00), and more, cash, to be paid to Bear River
by RMG, concurrently herewith, and in consideration of Bear River
entering into this Agreement with RMG, and at RMG's request, and in
consideration of RMG's covenant and agreement with Bear River to
keep and perform all of the covenants and agreements on RMG's part
to be kept and performed, in accordance with the terms and
conditions as hereinafter set forth, the parties hereto covenant
and agree, as follows, to -wit:
1. Bear River hereby grants to RMG a non 'exclusive right to
utilize and maintain said Premises as aforesaid as more
particularly identified and shown on said Exhibit "A" annexed
hereto and by this reference specifically made a part hereof.
Said Premises to be used by RMG solely and only in connection
with RMG's said oil and gas drilling and producing operations
involving the Anadarko Well above located in the NE1 /4 of said
Section 21, in Township 19 North, Range 117 West, 6th P.M., and for
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the purpose of this Agreement, RMG agrees that in the event the
road and drill site Premises shown on said Exhibit "A" is longer
than 1,584.00, feet or 96 Rods in length, and said drill site
premises exceeds two acres in size and area, RMG will forthwith pay
to Bear River Nine Dollars ($9.00) per rod for all rods or fraction
thereof exceeding 96 rods in said road and One Thousand Dollars
($1,000.00) per acre, or fraction thereof exceeding two (2) acres
in said drill site.
2. RMG will concurrently herewith pay to Bear River the sum
of $864.00, for the use of said road and a one time damage payment
of $2,000.00 for said drill site, which has been accepted and
acknowledged by Bear River as full payment for the use of said
Premises identified and described in said Exhibit "A" through the
31st day of May, 2006, such date constituting for the purposes
hereof the last day of the first license year of this Agreement.
3. This Agreement shall remain in full force and effect
through May 31, 2006, and through all succeeding renewal license
years to which this Agreement is extended. A renewal license year
hereunder (hereafter "renewal year shall be the twelve -month
period from June 1, through May 31, of the following year.
As rental for said access road for each renewal year of
this Agreement, RMG shall pay to Bear River by check, at its
address above set forth, or at such other address as Bear River may
designate by written notice to RMG, in advance, and on or before
the 1st of June, 2006, and on or before the 1st day of June of each
renewal year thereafter, the sum of $432.00 Dollars for the use of
said road only as identified and shown on said Exhibit "A ",but to
be adjusted according to the following formula; provided, however,
that in no event shall the annual rental for any given renewal year
be reduced below the annual rental owing and paid for the immediate
preceding renewal year:
Ra $432.00 x ka
Ib
where
Ra: above set forth is the annual rental payment due on
or before June 1, 2006, and on or before each June 1,
thereafter to be used in determining the amount required
to renew this Agreement for the next succeeding renewal
year under this Paragraph 3;
Ia is the Consumer Price Index All Urban Consumers,
U.S. City Average, All Items (1982 84 Base 100)
published by the U.S. Department of Labor, for the month
of March immediately preceding the first day of June of
the applicable renewal year of adjustment.
Ib: is the consumer price index (as defined above) for
the month of June, 2005.
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In addition, each rental payment for said road made to Bear
River by RMG hereunder shall also be properly identified by
reference on the check or sight draft or in accompanying materials
to this Agreement and to RMG's file number provided to Bear River
concurrently herewith to identify this Agreement.
In the event the consumer price index is discontinued or
revised, such other Government Index with which it is replace shall
be used in order to obtain substantially the same result as would
have been obtained if the Consumer Price Index has not been
discontinued or revised.
4. During the life of this Agreement, Bear River, and all
other authorized parties, both before and after the date hereof,
shall have the right to use and enjoy and continue to use and enjoy
said Premises (road and drill site), it being understood and agreed
that the rights herein granted to RMG with respect to said Premises
are not exclusive and RMG will fully cooperate with Bear River and
said other authorized parties to the end that said Premises can be
used and continue to be used and enjoyed by Bear River and all
parties authorized by Bear River.
It is understood and agreed that the said Premises herein
shall only be utilized by RMG in connection with RMG's oil and gas
drilling, producing operations and Well located in the NE1 /4 of
said Section 21, in Township 19 North, Range 117 West, 6th, PM, and
that nothing herein contained shall give or grant to RMG any right
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or authorization to utilize said Premises, or to travel across or
use any other land(s) or road(s) owned or controlled by Bear River,
to obtain access to any adjoining or other lands for the purpose of
RMG's oil and gas drilling and producing operations, or for any
other purposes whatever, without the written consent of Bear River
being first had and obtained.
5. Bear River shall pay all County taxes assessed against
said Premises, based upon the valuation of the surface of said
Premises at the time of such assessment except as otherwise
provided in this paragraph.
RMG shall pay all County tax assessments based upon any and
all improvements whatsoever placed upon said Premises by RMG.
RMG shall also pay all County taxes, if any, assessed against
said Premises because of additional value placed thereon for tax
purposes by reason of improvements placed upon said Premises by
RMG, and RMG shall, within thirty (30) days after written notice
from Bear River, reimburse Bear River for RMG's share thereof.
Provided, however, in the event RMG deems any such assessments to
be unreasonable and wishes to appeal the same, Bear River agrees to
cooperate in every reasonable way with RMG in the handling of any
such appeal, it being agreed that RMG shall bear any and all costs
of such appeal and in the event such appeal by RMG is successful
and Bear River receives money or credit as a result thereof, Bear
.L
River will pay or credit RMG any portion thereof properly allocable
to RMG.
6. Bear River makes no warranties or representations, either
express or implied, herein as to its titles to said Premises(access
roads) and RMG's rights hereunder and the use of said Premises
hereunder by RMG are all expressly subject to all superior rights,
in law or in equity, of every kind and nature, and whether recorded
or not recorded, and including, but without limitation, the
following, to -wit:
(a) All reservations, limitations, and conditions of the
underlying Patents covering said Premises and the rights of all
parties pursuant thereto;
(b) All grants, conditions, limitations, and
reservation, if any, of record, or arising by operation of law, and
the rights of all parties pursuant thereto;
(c) All easements and /or rights of way of record and all
easements and /or rights of way, if any, not recorded, but which
have been established and now exist by operation of law upon the
lands included in said Premises, or any portion, or portions,
thereof, and the rights of the owner(s) /holder(s) /claimants of such
easements and /or rights of way and all other parties pursuant
thereto;
(d) The rights of Bear River and its officers, agents,
Permittees and employees and all other authorized persons and
entities to graze livestock on and near the Premises; the rights of
the owner(s) of the mineral estate(s), and the terms and conditions
of and the rights of all parties under all existing grazing, oil,
gas, mineral, or other lease(s), licenses, permits, access road
agreements, or surface owners agreements, and all other agreements
of every kind and nature, covering any portion, or portions, of the
lands included in the said Premises, and the right of Bear River to
renew or extend said leases, licenses, permits and agreements
and /or enter into new leases, licenses, permits and /or agreements,
with any party or parties, at the sole discretion of Bear River;
and
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(e) The rights of all parties under all underlying deeds
constituting the record chain of title from Patentee(s) to Bear
River.
7. At RMG's sole cost and expense and during the entire life
of this Agreement, RMG shall:
C t)C.0 t 2
(a) Maintain and keep said Premises and access roads
clear of refuse and litter caused by RMG.
(b) Comply with all Federal, State and local Laws,
ordinances, and enactments, and with all lawful rules, regulations
and orders of all regulating agency, or agencies, applicable to
RMG's use and maintenance of the said Premises and operations under
this Agreement, including, but without limitation, environmental,
water, noise and air pollution control, erosion control, toxic
waste, hazardous substances and material.
(c) Hold Bear River and all of its officers, agents,
contractors, Permittees and employees free and harmless from and
indemnify them, and each of them, from and against (a) any and all
damages, claims, costs, and expenses resulting from RMG's failure
and the failure of its officers, agents, contractors and employees
to comply with said Federal, State and local Laws, ordinances, and
enactments, rules, regulations, and orders of regulating agency, or
agencies, set forth in subparagraph (b) above; and (b) any and all
damages, claims, demands, costs and expenses arising out of damage
to livestock and property or injury to or death of RMG's employees
or any other person(s) whomsoever, where such injury, death or
damage arises out of, results from, or is in any way connected with
RMG's rights and operations under this Agreement.
(d) Indemnify and hold Bear River harmless from and
against any and all claims and liens upon said premises for labor
or materials furnished to RMG; its officers, agents, contractors or
employees and shall forthwith take all necessary actions to remove
such liens from all public records or otherwise, upon request of
Bear River.
8. During the entire life of this Agreement, RMG, at its
sole cost and expense, also agrees to fully cooperate with Bear
River and its officers, agents and Permittees to graze their
livestock on said Premises and all other authorized users,
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including oil and as operators and other parties, of said Premises
and access roads to:
(a) Maintain said Premises (access roads) in good repair
and condition;
(b) Take all necessary precautions to avoid damage to
gates, bridges, culverts, cattle guards, dikes and stock watering
facilities, if any, within said Premises.
(c) Cooperate fully so that range improvements, such as
fencing or reservoirs, etc., if any, within said Premises, will not
be disturbed or, where disturbance is necessary, RMG shall leave
such improvements in the original or better condition, as
determined by Bear River.
(d) Maintain adequate water breaks on all disturbed
slopes, if any.
(e) Effect a minimum of vegetative disturbance,
consistent with practical operations, and will smooth and maintain
all disturbed areas to conform as nearly as practical with adjacent
terrain, and provide and maintain adequate water drainage to
minimize erosion.
(f) Take reasonable steps to control all infestation of
noxious weeds on the said Premises caused or aggravated by RMG's
activities hereunder.
(g) Post and maintain a 25 MPH speed limit sign for all
vehicles being operated on the said Premises by RMG's employees,
agents, contractors, etc., and take reasonable steps to inform all
such persons of said speed limit and necessity of compliance
therewith.
(h) Keep dust controlled on said Premises caused by
RMG's activities thereon.
(i) Take reasonable steps to not permit any dogs or
other animals to be kept in the area which could cause any damage
or death to livestock.
(j) Take reasonable steps to inform its employees,
agents and contractors and all other parties participating with
RMG, of the presence of livestock in the area and of the need for
caution where livestock is present.
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9. RMG shall not have the right to fence any part of the
Premises and access roads included in this Agreement or take and
utilize any water or water rights now owned by, held, or controlled
by or hereafter owned by, held, controlled or acquired by Bear
River, without the written consent of Bear River being first had
and obtained.
10. In addition to the provisions of Paragraph 12, hereafter,
this Agreement is personal in nature, and an award of damages,
only, for RMG's default hereunder may not be sufficient, the
parties also agree that this Agreement is also specifically
enforceable; and in the event of a default with respect to any of
the covenants and agreements hereunder on the part of RMG to be
kept and performed, and whether before or after the termination of
this Agreement, RMG agrees to pay and shall pay to Bear River all
costs and expenses of enforcing this Agreement, or in seeking
damages for any breach of this Agreement, or in pursuing any other
remedy provided hereunder, or by the statutes of the State of
Wyoming, whether such remedy is pursued by filing suit or
otherwise, or a combination of the foregoing remedies, including a
reasonable attorney's fee.
11. This Agreement shall not be construed as a conveyance of
any minerals or water rights or interests therein, or as
authorizing RMG to explore for, mine, or remove any minerals except
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{:7/2
oil and gas from the said drill site Premises without Bear River's
specific written permission first had and obtained.
12. This Agreement is also made upon the condition that RMG
shall perform all the covenants and agreements herein set forth to
be performed by it, and if at any time there shall be any default
on the part of RMG hereunder, this Agreement shall not terminate,
except as hereinafter provided to -wit:
(a) In the event RMG shall default in the
payment of any annual rental payments promptly
on the date when the same shall become due and
owing hereunder, and RMG shall fail to pay the
same to Bear River by check or sight draft
within twenty (20) days after written notice
of such default being given by Bear River to
RMG at its address above set forth; or
(b) In the event RMG shall default in the
performance of any other covenant and
agreement hereunder on its part to be kept and
performed, and if RMG shall fail to cure such
default within twenty (20) days after written
notice of such default being given by Bear
River to RMG at its address above set forth,
or after weather and soil conditions first
permit repair, if the default be of such a
nature,
then and in such event, or events, this Agreement shall forthwith
terminate and end and cease to exist, and the subject Premises
(drill site and access road) shall thereupon revert to Bear River,
free and clear of RMG's rights and interests herein and hereunder,
provided, however, such termination shall not release RMG from the
performance of all of the covenants, agreements and obligations
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14. Notwithstanding anything contained herein to the
contrary, it is agreed that this Agreement does not in any manner
constitute a conveyance of any title, interest or estate in and to
any part of the said Premises (drill site and access road)
hereinabove described, and shall not ripen into an easement of any
kind or nature, and said Premises may be relinquished or
surrendered, in whole, at the end of the then current license year
upon giving ninety (90) days prior written notice to Bear River as
provided herein and in the event of relinquishment or surrender of
said Premises hereunder, all of the rehabilitation and other
provisions of Paragraph 15, hereafter, shall forthwith apply to all
of said Premises so relinquished and surrendered.
15. Upon the termination of this Agreement for any cause or
reason, RMG shall, within ninety (90) days after such termination,
remove all of its property, if any, from the said Premises and at
its sole cost and expense, and rehabilitate, reseed and restore all
of the Premises, or portion or portions thereof, as designated by
Bear River, unless waived in writing by Bear River within 60 days
after such termination, as nearly as possible to their original and
former state and condition and seeding shall be repeated until a
satisfactory stand is obtained at its sole cost and expense, and
seed utilized shall be designated by Bear River or the Bureau of
Land Management, and shall be a mixture similar to the vegetative
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time of such termination, including, Bear River's right of specific
performance as provided under Paragraph 10, above.
17. Any notice contemplated herein to be served upon either
party shall be in writing and mailed in the United States Mail,
postage prepaid, Registered Mail or Certified Mail, Return Receipt
Requested, at the addresses of Bear River and RMG above set forth
in the first paragraph hereof, or at such other address as either
party may from time to time in writing designate.
Service of notice by mail shall be deemed sufficient and
complete upon date of posting and mailing in accordance herewith.
It is also understood and agreed that personal service of notice
upon either party shall be deemed sufficient service of notice and
no mailing of notice in the case of personal service shall be
necessary.
18. No waiver by either party of any breach or default by the
other party on any occasion, and no election by either party to
exercise or forego any right or remedy hereunder or relating hereto
on any occasion, shall be deemed to be a waiver of any other breach
or default or to be an election to pursue or forego any right or
remedy on any other occasion.
19. RMG shall not have the right to sell, assign, sublease or
otherwise in any manner transfer this Agreement, or any part or
portion thereof, or any of its rights and interests herein and
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TAX ID# '7- D 3c) .Z 3 Bear River Land Grazing Company, a
Wyoming Corporation:
v
EDWARD M. BOWN
NOTARY PUBLIC STATE OF UTAH
1972 EAST CtAREMONT WAY
`tom
SALT LAKE CITY, UT 84108
C m ist 04 2007
My Commission Expires
0.72.Aa mg', 2c'01.
RMG:
BEAR RIVER:
Its President
Rocky Mountain Gas, Inc.,
a Wyoming Corporation
7
ACKNOWLEDGMENTS
STATE OF a- -4
SS.
COUNTY OF /L-�- h-/
On the 1 i da of 2005 personally appeared
before me ke, Q 1!-- President of Bear River Land
Grazing Company, a Wyoming Corporation, known by me to be the
signer of the foregoing ACCESS ROAD AND DRILL SITE AGREEMENT, who
duly acknowledged to me that he executed the same.
Witness my hand and official seal.
-17-
Notary Public
Residing at
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pus pusq Aw ssau ;TM
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30 2ZNllOa
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(Exhibit "A" to Access Roa
L ocation Map and Drill Site Agreement
dated June 1, 2005)
0 0.125 0.25
0.5
0.75
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Miles
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Rooky Mountain Gas, Inc.
Coalbcd Mcthune Exploration Production
Anadarko NE-21-19-117A
41 °37'08.3 "N 110 °38'26.6 "W
IN THE N E 1 /4 OF SECTION 21
T.19N., R.117W., 6th P.M.,
LINCOLN COUNT`r_IING