Fill and Sign the Priority of Proposed Operations Form

PRIORITY OF PROPOSED OPERATIONS If, at any time, there is more than one operation proposed in connection with any well subje ct to this Operating Agreement, then unless all participating parties agree on the sequenc e of those operations, the proposals shall be considered and disposed of in the following order of priority: 1. Proposals to do additional testing, coring, or logging provided that if a disagreement exists as to the testing to be performed on the well at any depth, testing shall be performed as follows: a. Any logging, coring, or testing provided in a prognosis or AFE shall be conducted for the Joint Account; b. Any additional logging, coring, or testing shall be performed by the Operator at the sole cost, risk, expense, and liability, including indemnification against loss of hole, of the parties electing to participate i n the additional operations, and the participating parties shall be exclusively entitled to the information obtained from those operations; provided, however, no additional testing shall be performed on a well then producing in paying quantities unless all working interest owners in the well consent to the testing. 2. Proposals to deepen a well to its approved objective formation, if not previously seen. 3. Proposals to attempt a completion in the objective zone. 4. Proposals to plug back and attempt completions in shallower zones, in ascending order. 5. Proposals to deepen the well, in descending order. 6. Proposals to sidetrack the well. 7. Proposals to plug and abandon the well. No party may propose any operation with respect to any well while there is in progress any operation on that well, until the operation in progress has been completed. If, in Operator’s sole opinion, at the time the participating parties are considering a ny of the above operations, the hole is in such a condition that a reasonable prudent operator would not conduct an operation in the sequence provided above, for fear of placing the hole in jeopardy or losing it prior to completing the well in the objective depth or objective formati on, the operations shall not be given priority as set out above.