SERVICE AND WATER DISPOSAL AGREEMENT
This Service and Water Disposal Agreement is effective as of November
15, 2002 by and between Petrol Oil and Gas Inc, a Nevada Corporation
("POGI"), and B&B Cooperative Venture, ("B&B") and Xxxx Petroleum ("Xxxx").
Recitals
WHEREAS, Xxxx is the Owner/Operator of the Xxxxxx SWD well located in
the Hatch Field, SE 1/4 of S 23 T 21 R13E of Xxxxxx County, Kansas Docket #
D-24630 ("Disposal Well"), and
WHERAS, Xxxx has been granted all rights and authority by the landowner,
mineral lease owner, City, County, State and Federal Authorities and
Regulators to inject and dispose of brine waters into said Disposal Well, and
WHEREAS, B&B and Xxxx and their employees have the knowledge and
understanding involved in the injection of fluids into the Disposal Well in a
safe and environmentally sound manner, and
WHEREAS, Xxxx is licensed and operates as part of its general operations
water well hauling, and
WHEREAS, B&B operates a well serving operation capable of monitoring and
assessing the integrity and operation of producing and shut in oil and gas
xxxxx ("Pumping Service"),
WHEREAS, POGI is engaged in the drilling and completion of its xxxxx in
Xxxxxx and other Counties in Kansas, and
WHEREAS, POGI is also engaged in the business of producing gas and/or
oil from its xxxxx and monitoring the production process, and
WHEREAS, POGI will at times produce water ("Produced Water") from its
xxxxx and storage Produced Water in tanks on POGI leases, and
WHEREAS, POGI is desirous to have B&B provide Pumping Services on its
existing xxxxx to monitor operations, and assess and report on the
disposition of the production process, and
WHEREAS, POGI desires to have Xxxx transport Produced Water from POGI
lease tanks to the Disposal Well where Xxxx will inject Produced Water into
the Disposal Well,
NOW THEREFORE, in consideration of the above recitals and the mutual
promises and conditions in this Agreement, and other good and valuable
considerations, the receipt and sufficiency of which is hereby acknowledged,
the parties agree as follows:
1. PUMPING SERVICES. B&B shall provide Pumping Service on POGI xxxxx as
instructed by POGI.
1.1. B&B Pumping Services: B&B will check and monitor the xxxxx, tank
batteries and associated well equipment that are necessary to maintain the
xxxxx in an operational manner. B&B will provide a daily report describing
the activities and operational status of the POGI xxxxx. The daily report
will be transmitted to POGI via e-mail or FAX.
1.2. POGI will pay B&B $10.00 (Ten dollars) per day for each well B&B
provides Pumping Service. POGI will pay B&B on a monthly basis in the amount
of $300.00 (Three Hundred dollars) per well.
2. WATER HAULING AND DISPOSAL. Xxxx will provide water hauling of POGI
Produced Water and Xxxx will dispose of those Produced Water in the Disposal
Well.
2.1. Xxxx will unload Produced Water from POGI water tanks and transport
the Produced Water to the Disposal Well.
2.2. Xxxx will subsequently dispose of the Produced Water in the
Disposal Well.
2.3. POGI agrees to pay Xxxx at the rate of $60.00 (Sixty dollars) per
hour for water hauling.
2.4. POGI agrees to pay $250.00 (Two Hundred Fifty) per month for use of
the Disposal Well. POGI will pay Xxxx 3 (Three) months in advance for the use
of this disposal well.
3. TERM OF AGREEMENT. The term of this agreement shall be for 1 (One) year
beginning on the date first written above, and ending November 15, 2003.
3.1 Use of the Disposal Well will be terminated if Xxxx is not used
for hauling water from the existing POGI xxxxx.
4. CONFIDENTIAL INFORMATION:
4.1 Nondisclosure. Without the prior written consent of POGI, B&B and/or
Xxxx shall not, at any time, either during or after the term of this
Agreement, directly or indirectly, divulge or disclose to any
person, firm, association, or corporation, any plans, data, results
of tests and data, or any other trade secrets or confidential
materials or like information (collectively referred to as the
"Confidential Information") of POGI, it being the intent of POGI,
with which intent B&B and Xxxx hereby agrees, to restrict B&B and
Xxxx from disseminating or using any like information that is
unpublished or not readily available to the general public.
5. MISCELLANEOUS:
5.1 Time of the Essence. Time is of the essence of this Agreement, and
each provision hereof.
5.2 Governing Law. The formation, construction, and performance of this
Agreement shall be construed in accordance with the laws of Kansas.
5.3 Notice. Any notice, request, demand or other communication required
or permitted hereunder or required by law shall be in writing and
shall be effective upon delivery of the same in person to the
intended addressee, or upon deposit of the same with an overnight
courier service (such as Federal Express) for delivery to the
intended addressee at its address shown herein, or upon deposit of
the same in the United States mail, postage prepaid, certified or
registered mail, return receipt requested, sent to the intended
addressee at its address shown herein. The address of any party to
this Agreement may be changed by written notice of such other
address given in accordance herewith and actually received by the
other parties at least ten (10) days in advance of the date upon
which such change of address shall be effective.
POGI Address B&B Address
Petrol Oil and Gas Inc. B&B Cooperative Ventures
Attn: Xxxx Xxxxxxxx 000 00xx Xx.
0000 X. Xxxxxxxxx Xxx Xxxxxxxxxx, XX 00000
Xxx Xxxxx, XX 00000 620 364 5875
000 000 0000
IN WITNESS WHEREOF, the parties have entered into this Agreement on the
date first above written.
POGI:
DATE:__________________ By:/s/ Xxxx Xxxxxxxx
November 15th, 2002 Xxxx Xxxxxxxx
B&B:
DATE:___________________ By:/s/ Xxxxxx X Xxxx
November 15th, 2002 Xxxxxx X Xxxx , Director
B&B:
DATE:___________________ By:/s/ Xxxxx Xxxx
November 15th, 2002 Xxxxx Xxxx , Director
