Drilling Area Permit

Drilling Area Permit

Permit Administration

Site and Operations

Recitals

WHEREAS, Issuing Authority: is empowered to grant permits governing drilling operations on the referenced site; and

WHEREAS, Permittee: has applied for authority to perform drilling activities at Site: under the terms and conditions set forth herein; and

WHEREAS, the parties desire to set forth the scope, conditions, and security required for drilling operations and to protect public health, safety, property and environmental resources;

Scope of Work

Payment Terms

Permit Fee: $ . Payment shall be made in accordance with the schedule below.

Payment due within days of invoice. Late payments will incur interest at % per month or the maximum allowed by law, whichever is less.

Term and Termination

Term Commencement Date: . Estimated Completion Date: .

Either party may terminate this permit for material breach if the breaching party fails to cure within days after written notice. Issuing Authority may suspend or revoke this permit immediately where required to prevent imminent risk to public safety, property, or the environment.

Insurance, Bonding and Financial Security

Permittee shall maintain commercial general liability insurance with limits not less than $ per occurrence and shall provide certificates evidencing coverage prior to mobilization. Permittee shall also provide worker's compensation as required by law.

Bond or financial security required: $ to guarantee site restoration and compliance.

Environmental and Safety Conditions

Permittee shall implement best management practices to prevent spills, soil erosion, and contamination of surface and groundwater. All drill cuttings, fluids, and wastes shall be contained and disposed of in accordance with applicable law and the conditions of this permit.

Permittee shall allow reasonable access for inspections by Issuing Authority representatives and shall provide copies of monitoring, sampling and incident reports within the timeframes required by Issuing Authority.

Confidentiality

Confidential Information means data or information clearly designated in writing as confidential at the time of disclosure. Issuing Authority and Permittee agree not to disclose Confidential Information received from the other party except as required by law or as necessary to perform obligations under this permit. Proprietary technical proposals and drilling logs shall be treated as Confidential Information for a period of three years from submission unless otherwise required by law.

Indemnification

Permittee shall defend, indemnify and hold harmless Issuing Authority, its officials, employees and agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or resulting from Permittee's performance of operations under this permit, except to the extent caused by Issuing Authority's gross negligence or willful misconduct.

Governing Law; Entire Agreement

This permit shall be governed by and construed in accordance with the laws of the State of . The parties acknowledge that this permit, together with any referenced plans, exhibits, and approved submittals, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations and agreements.

Certifications and Acknowledgements

By checking the boxes below, Permittee certifies compliance with the following conditions and acknowledges that issuance of this permit is conditioned upon continued compliance.

Permittee has obtained required insurance and will provide certificates prior to mobilization.

Permittee has submitted and will follow the environmental protection and spill response plan required under this permit.

Permittee will restore the site to the condition required by Issuing Authority within the timeframes set forth in this permit.

Default and Remedies

Failure to comply with any material provision of this permit constitutes default. In the event of default, Issuing Authority may suspend or revoke the permit, require cessation of operations, draw on financial security, or pursue any other remedy available at law or equity, including injunctive relief.

Acknowledgement of Authority

The signer of Permittee below represents and warrants that they are authorized to execute this permit on behalf of Permittee and to bind Permittee to its terms.

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