Common use of ESI Clause in Contracts

ESI. ESI shall assume the following responsibilities: (a) locate, drill and operate natural gas ▇▇▇▇▇; (b) acquire the leasehold interest to the land, upon which each drill site is located. ESI represents and warrants that it has acquired a lease to land located in ▇▇▇▇ and Laurel Counties, Kentucky, as evidenced by the Lease Agreements attached hereto as Exhibit “A” and Exhibit “B”. ESI represents and warrants that pursuant to said Lease Agreements, it has the right to locate and drill ▇▇▇▇▇ on said property for the purpose of exploring and developing ▇▇▇▇▇ for natural gas or other hydrocarbon production. ESI further represents and warrants that the Leases are in full force and effect and will permit drilling operations thereon, in accordance with the terms and provisions of this Agreement, provided that a Kentucky permit is secured with respect to each drill site; 2 (c) secure title opinions and updates on each Lease, and the mineral rights thereto, copies of which opinions shall be provided to Investors, at their request; (d) employ and secure such subcontractors for drilling operations, provided said subcontractors are duly qualified to drill ▇▇▇▇▇, for the production of natural gas and other hydrocarbons, and licensed, if required; (e) manage all drilling operations for each well in the drilling program, including completion of any producing ▇▇▇▇▇; (f) provide for the storage and transportation of all natural gas, or other hydrocarbons produced at each drill site; (g) secure and provide for the sale and marketing of natural gas, or other hydrocarbons produced at each drill site; (h) secure all licenses and drilling permits as may be required by Kentucky law, and, specifically, KRS Chapter 353, with respect to each well and drill site, prior to the commencement of drilling. A copy of each permit shall be available to Investors prior to the commencement of any drilling; (i) record all assignments, leases and other documents necessary or required to perfect Investors’ working interest ownership in each drill site; (j) comply with all federal, state and local laws regarding or affecting drilling operations, production and transportation of natural gas, or other hydrocarbons produced, and sales, to include compliance with all federal, state and local laws regarding transmission of natural gas, or other hydrocarbons, from each drill site to the consumer; (k) to generally manage the day-to-day drilling operations involved in the drilling program in compliance with this Agreement and all provisions of federal, state and local law; and (l) maintain all books and records, including income and costs records for all drilling and production well operations in the drilling program, which includes the allocation and payment of revenues generated from a producing well as set forth in Section 4 of this Agreement (“Well Accounting”) and make payment of all costs and expenses associated with drilling at each drill site.

ESI. ESI shall assume the following responsibilities: (a) locate, drill and operate natural gas ▇▇▇▇▇; (b) acquire the leasehold interest to the land, upon which each drill site is located. ESI represents and warrants that it has acquired a lease to land located in ▇▇▇▇ and Laurel Counties, Kentucky, as evidenced by the Lease Agreements attached hereto as Exhibit “A” and Exhibit “B”. ESI represents and warrants that pursuant to said Lease Agreements, it has the right to locate and drill ▇▇▇▇▇ on said property for the purpose of exploring and developing ▇▇▇▇▇ for natural gas or other hydrocarbon production. ESI further represents and warrants that the Leases are in full force and effect and will permit drilling operations thereon, in accordance with the terms and provisions of this Agreement, provided that a Kentucky permit is secured with respect to each drill site; 2; (c) secure title opinions and updates on each Lease, and the mineral rights thereto, copies of which opinions shall be provided to Investors, at their request; (d) employ and secure such subcontractors for drilling operations, provided said subcontractors are duly qualified to drill ▇▇▇▇▇, for the production of natural gas and other hydrocarbons, and licensed, if required; (e) manage all drilling operations for each well in the drilling program, including completion of any producing ▇▇▇▇▇; (f) provide for the storage and transportation of all natural gas, or other hydrocarbons produced at each drill site; (g) secure and provide for the sale and marketing of natural gas, or other hydrocarbons produced at each drill site; (h) secure all licenses and drilling permits as may be required by Kentucky law, and, specifically, KRS Chapter 353, with respect to each well and drill site, prior to the commencement of drilling. A copy of each permit shall be available to Investors prior to the commencement of any drilling; (i) record all assignments, leases and other documents necessary or required to perfect Investors’ working interest ownership in each drill site; (j) comply with all federal, state and local laws regarding or affecting drilling operations, production and transportation of natural gas, or other hydrocarbons produced, and sales, to include compliance with all federal, state and local laws regarding transmission of natural gas, or other hydrocarbons, from each drill site to the consumer; (k) to generally manage the day-to-day drilling operations involved in the drilling program in compliance with this Agreement and all provisions of federal, state and local law; and (l) maintain all books and records, including income and costs records for all drilling and production well operations in the drilling program, which includes the allocation and payment of revenues generated from a producing well as set forth in Section 4 of this Agreement (“Well Accounting”) and make payment of all costs and expenses associated with drilling at each drill site.