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Section 2. UPLRC agrees, so long as it is receiving oil and /or gas production from or oil and /or gas royalties upon production from the described premises or allocated thereto under the provisions of a unitization agreement, to pay or cause to be paid to the Landowner in cash the value (which shall never be greater than the amount realized by UPLRC from the sale of such production) on the premises of two and one -half percent (2 1/2 of all the oil and gas and associated liquid hydrocarbons hereafter produced, saved, and marketed therefrom or allocated thereto as aforesaid, except oil and gas and associated liquid hydrocarbons used in operations on the premises or used under the unitization agreement, and except that as to casinghead gasoline and other products manufactured from gas there shall be deducted the cost of manufacture; provided, however, that during any time the described premises or any portion thereof are included within the boundaries of a participating, pooled, or communitized area, and there is no provision for the payment of royalties to UPLRC but it partici- pates in the production from the pooled, communitized, or unit area as a working interest owner, then the two and one -half percent (2 1/2 above set forth shall be applied to that percentage of the total production from such area which is allocated to the described premises. Any payment made to the Landowner pursuant to this Section 2 for production which is sold or which is used off the premises shall be calculated after deducting all taxes, now or hereafter levied against, paid on, or measured by production or the value thereof, and after deducting all costs incurred or borne by UPLRC for treating the production to make it merchantable, and for gathering, transporting and compressing the production prior to delivery to the purchaser at the point of sale or use. When production of oil from lands under several surface ownerships is commingled in one central tank setting for practical operating reasons, periodic individual well tests may be made to compute the quantities of commingled oil properly allocable to each well, and the two and one -half percent (2 1/2 payment provided herein shall be payable upon the quantities apportioned to each well as reported to UPLRC in full satisfaction of the obligations of UPLRC under this Section 2. Section 3. Nothing herein contained shall be construed as a covenant to drill by UPLRC, its agents, lessees, licensees, successors, or assigns, or by any operator or unit operator, or as a grant to Landowner of oil or gas rights or rights in other associated liquid hydrocarbons. Section 4. UPLRC, its agents, lessees, licensees, successors and assigns, including the operator or unit operator under a unitization agreement, shall be required: (a) to pay for all damage to Landowner's lands, buildings, and growing crops caused by the erection or construction of facilities to be used in connection with oil or gas or associated liquid hydrocarbon operations; (b) to bury all pipelines below plow depth where such lines cross cultivated land; and (c) to construct gates or, at its option, install cattle guards where necessary for crossing fenced land in connection with exploration, development, or producing operations and, where an election has been made to construct gates in lieu of cattle guards, to keep such gates in repair and closed. In no event shall the amount of damages exceed the value (as determined by the use of the land at the time the damages are sustained) of that portion of the Landowner's lands actually used by UPLRC, its agents, lessees, licensees, successors or assigns, for the location of its facilities. The fact that damages have not been agreed upon shall in no way delay, restrict, impair or diminish the right of UPLRC, its agents, lessees, licensees, successors and assigns to commence or conduct oil and gas operations on the described premises. Section 5. Other than the payments to be made as aforesaid, the Landowner shall not be entitled to any other or additional payments as a result of the conduct of the operations described in Section 1 hereof, and Landowner will claim no right, title or interest in or to the oil, gas and associated liquid hydrocarbon substances in the described premises. 2 213 ;au3- ut- Sauao DMa sai ivr NOIZVIOd2IO3 samROsau VrI DIdIDVd N011NIfl •uautam anogt lug itaii put Xup atu jo st antToomo aq of `000Z Je jo iitp it st143 2uawaaa5t situ pamoaxa aim owag sat2.n d alp `doallawn SSaNiZIA1 NI loojja JO aoaoJ ifut Jo aauoi ou on put paitumuol Xgaloq Oat sastwaad paquosap am ioajjt ttotlim lsaaant ut aossaoapaad sat JO aaumopuul alp pug Isamu! ut aossaoapaad sIt ao uoptiodaoD saoanosag put-I ogtogd uotun uaamiaq s2u0waaad aaump aormins 2ut2stxo tit put Cud j I uopo0s •2u0waaI v stq� a2noaxo op otim satjaud am o1 st awes Jo Al!pritn atu 10aJJt =MUM Aiut ut you tittis 2u0waaagd strip amoaxa utaaati p0wtu sapatd atu jo aaow JO auo /tug Jo aanituj aq j •2uawaaa y situ pamoax0 sat2atd tit jt se papa awns atu tuim 2agdaaiunoo jo uotjnooxa Xq utaaoq utof /itw utaa0q palm sopa' alp JO satlagd tit Xq pouts ivawnoop auo su pamoaxa aq Attu auawaaaad stgZ OT uopoas •suatsst put `saossaoons `saolra1stwwpe `saomoaxa `sataq ant1oadsaa .natq put olaaatt samgd aqq uodn &utpuiq aq pug jo ltdauaq alp o� aanut imp mua allow& sup 'pang g put 9 suopoas Jo suotstnoad alp o11oafgns •6 uot2oas •Joaaati sit1to0g alp ut 01 paaaajaa spaap JO poop am ut `patidun JO passaadxa `s1ti2p alp a1eutwaa1 IOU 1oaJJe aaggou iietis uoptutuual Lions `Jonamog `paptnoad toltunum Hugs auawaaa t snp 'mow 1st' aan0gOtum `suot2gaado guDtaomaa a0 EutIttaP lions Jo uoUessao uodn JO `iiam lions jo ivawuopuegt uodn JO luawaaae uontzptun JO `asuaoti 'am! Lions Jo uouuutuual uodn `put `uoaaatp pa2onpuoo Sutaq oat suotjta0do &utAaoma JO 2uiiltap JO `sastwaad paquosap alp uodn pa1tooi st su0gatooapICq pmbti pa1ttoossu JO sa JO ito 2utonpoad Jo atgtdto tram g st 2uoi os JO `1uawaaat uopuzmun g o1 ao asuaott JO asuai sug put Ho ut o2 pa12iutwoo oat sastwaad pagtaosap atu ut sag2u sa put ito 0143 st Joljuoiaql 2uoi OS put alai( (T) auo Jo potaad t JOJ raw put a0ao3 IIJ ut anut1uoo units put kiontt0p put uot3noaxa nut put woad paw put aoaoj iinJ ut aq Hugs 3uaw00at stns, g uopoas •Joaaatp laud Xaana put gaga put `papnioui aq Auw Joaaatu uomod Xut JO `sastwaad pagtaosap alp uotum uttptm gait 1tun iiug uttpim spurt aatuo Jo 1tJauaq alp aoj put `ao3gaado 1tun JO ao1gaado iCut .&utpntout `satssg put `saossaoons `s0asuOoti `s0assat `swat atatu put `joaaatg 1.tgd Xiang put goua put sastwaad paquosap atp ut s1tt2u uogaeooapiCq pinbq polutoossu Jo/pug sa co/put ito alp Jo saaumo sg `su2!sst put saossaoons sat put DJ Idn Jo 1Ijauaq alp ao3 anupuoo butts put `Joaaatp saaumo aan1nj put zuasaad atu put `j.oaaatu pud kaana put uota put sastwaad p0quos0p uodn utputq aq bugs utaaaq sasn put `s3ggta `s3uawasto a1ia •L uotaoos •apgw aa1eaaogl sIuOugrd o1 st ,Ciao uatp put `dttisIOumo Lions 2utwtgio iCpud at43 0� aaumoput-I alp w0JJ opn Jo utuga a3aidwoo g 2ut1nh1gsuoo s1uawna2sut JO 1uawna1sut 0143 Jo satdoo p0!Jt3.zao .10 itutguo 0143 Jo 2upstsuoo `dtlisaaumo Jo 02uttio Jo Oopou Jo 32IZdn Xq 3dta00a at43 &wmoJIoJ tpuow atu Jo iC p lug 0142 i!Iun IOumopug-I alp 01 s1uatuXud lions a)igw o1 anupuoo Inglis put saspuoid poquosap am 3o aastgoand luanbasgns Aug o1 S1Uotu Ctd Lions oval 01 paw2ttgo awooaq 'Iona/wog `Iou Hugs DJ'1dfl •palO)iaew st uotlonpoad uogaeooapXq ptnb!I pa2gtoossg ao set JO ito atu OItp alp Jo St sastwaad paquosop alp Jo ao1Jans 014 2utumo suosiod ao uosaad a143 01 mud oq Hugs 1uawaaat step aapun aigtXrd sums ifut pug `waljoiotu 1ita1uagdas paaaaJsuta2 JO Nag oq 1ou Hugs put sastwaad paquosop alp Jo dttisaaumo aotjans 0143 u1tm 2utuun t s3utuanoo aq tints joaaati b put z suopo0s ut pap!noad sums atu Xtd 01 s1U U0A00 0tH imp paaat st 3t `j00101.1 g 110!IO Jo suotstnoad 0143 01 ioafgns •9 uopo0s VIZ ATTEST: BY: STATE OF ss COUNTY OF g 01 fi r BY: UINTA DEVfMPMENT COMPANY 7' c�' es i ce: t� clee' r� Title 7 0/Y5 Taxpayer Identification Number PO Box 7 Fort Worth, TX 76101 215 The foreg g instrument was acknowledged before me this day of -J -Q— (2000, by .4..s H q, y as 1.) t Ct �I�-e of (_1 Al P,() 4 ;,p CAVl i 19, I a r;,LA-t e y corporation, on behalf of the corporation. t 0 CATHY J. GREE N Notary Public a.;o:;t STATE OF TEXAS •i Exp, an. 20, 2002 My Commission Expires: STATE OF TEXAS ss COUNTY OF TARRANT o- The foregoing instrument was acknowledged before me this C day of EI S NA X2000, by JAMES L. NEWCOMB, as Attorney in Fact of UNION PACIFIC LAND RESOURCES CORPORATION, a Nebraska corporation, on behalf of the corporation. CATHY J. GR N STATE O Public Comm, TEXAS My Exp. :en. 20, 2002 My Commission Expires: Notary Public 4