Common use of Operations in the Non-Coal Area Clause in Contracts

Operations in the Non-Coal Area. With respect to the land in any Mine Area that is not, during the relevant calendar year, shown by Coal Party (such showing by Coal Party to be in good faith) as a Coal Area on the Annual Coal Development Plan finalized for any Mine (the “Non-Coal Area”): (a) Gas Party shall, subject to Coal Party’s plugging, relocation, and shut-in rights pursuant to Section 3.3, have the right to locate and drill ▇▇▇▇▇, and construct pipelines and facilities, in the Non-Coal Area that are attributable to the Gas Interests and the right to exercise its Surface Use Rights set forth in Section 5.1 below in the Non-Coal Area, including the right to transport Third Party Gas from lands in the Coal Area or other lands and the right to support operations of Gas Party, its partners, joint venturers, co-working interest owners, and/or any of its joint ventures on lands in the Coal Area or other lands. Coal Party shall have the absolute right to Stimulate any coal seam for production, but not Capture, in the Non-Coal Area or to degas the Non-Coal Area. (b) Any Well drilled by Gas Party such that the vertical wellbore of the Well was located within the Non-Coal Area at the time that Governmental Authorities issue the original drilling permit for such Well shall be deemed a Protected Well. (c) Each Well in the Non-Coal Area that exists or for which a drilling permit has been issued by Governmental Authorities as of the Effective Time shall be deemed a Protected Well hereunder. Further, in the event that, after the Effective Time, Coal Party acquires ownership or control of any Mine for which a mining permit or permits have been issued by Governmental Authorities prior to Coal Party’s acquisition thereof (i) each Well in the Mine Area of such Mine that exists or for which a drilling permit has been issued by Governmental Authorities as of the date such Mine is acquired by Coal Party shall be deemed a Protected Well hereunder, and (ii) each Well in the Mine Area of such Mine for which a drilling permit is issued by Governmental Authorities after the date such Mine is acquired by Coal Party shall be subject to this Agreement, including ARTICLE III hereof. (d) To the extent Gas Party desires to drill the vertical wellbore of a Well, or ▇▇▇▇▇, in the Non-Coal Area within a Mine Area, Gas Party and Coal Party shall use commercially reasonable efforts to cooperate with each other with respect to the location of such Gas Party ▇▇▇▇▇ and operations; provided, however, that if Coal Party and Gas Party do not agree on the location of such Well in the Non-Coal Area portion of a Mine Area within thirty (30) days after written notification from Gas Party to Coal Party of such Well’s planned location, Gas Party shall have the right to determine the location of any such Well in the Non-Coal Area portion of such Mine Area in its sole discretion and such Well shall be deemed a Protected Well; provided, further, that Gas Party shall have no obligation to notify Coal Party prior to drilling any Well that is not located in a Mine Area at the time such Well is permitted, or to coordinate with Coal Party concerning the location of any such Well.