Document:

EX-10.1

 Exhibit 10.1 

DRILLING AND OPERATING AGREEMENT 

 INDEX 
  

									
	Section	  	 	  	Page	 
			
	 1.
	  	 Assignment of Well Locations; Representations and Indemnification Associated with
the Assignment of the Lease; Designation of Additional Well Locations; Outside Activities Are Not Restricted
	  	 	1	 
			
	 2.
	  	 Drilling of Wells; Timing; Extent of Drilling; Interest of Developer; Right to
Substitute Well Locations
	  	 	3	 
			
	 3.
	  	 Operator – Responsibilities in General; Covenants; Term
	  	 	4	 
			
	 4.
	  	 Operator’s Charges for Drilling and Completing Wells; Payment; Completion
Determination; Dry Hole Determination; Excess Funds and Cost Overruns – Intangible Drilling Costs; Excess Funds and Cost Overruns – Tangible Costs
	  	 	5	 
			
	 5.
	  	 Title Examination of Well Locations; Developer’s Acceptance and Liability;
Additional Well Locations
	  	 	9	 
			
	 6.
	  	 Operations Subsequent to Completion of the Wells; Fee Adjustments; Extraordinary
Costs; Pipelines; Price Determinations; Plugging and Abandonment
	  	 	9	 
			
	 7.
	  	 Billing and Payment Procedure with Respect to Operation of Wells; Disbursements;
Separate Account for Sale Proceeds; Records and Reports; Additional Information
	  	 	11	 
			
	 8.
	  	 Operator’s Lien; Right to Collect From Oil or Gas Purchaser
	  	 	13	 
			
	 9.
	  	 Successors and Assigns; Transfers; Appointment of Agent
	  	 	13	 
			
	 10.
	  	 Operator’s Insurance; Subcontractors’ Insurance; Operator’s
Liability
	  	 	15	 
			
	 11.
	  	 Internal Revenue Code Election; Relationship of Parties; Right to Take Production
in Kind
	  	 	15	 
			
	 12.
	  	 Effect of Force Majeure; Definition of Force Majeure; Limitation
	  	 	16	 
			
	 13.
	  	 Term
	  	 	17	 
			
	 14.
	  	 Governing Law; Invalidity
	  	 	17	 
			
	 15.
	  	 Integration; Written Amendment
	  	 	17	 
			
	 16.
	  	 Waiver of Default or Breach
	  	 	17	 
			
	 17.
	  	 Notices
	  	 	17	 
			
	 18.
	  	 Interpretation
	  	 	18	 
			
	 19.
	  	 Counterparts
	  	 	18	 
				
		  	 Exhibit A
	  	 Description of Leases and Initial Well Locations
	  			
		  	 Exhibits A-l through A-    
	  	 Maps of Initial Well Locations
	  			
		  	 Exhibit B
	  	 Form of Assignment
	  			
		  	 Exhibit C
	  	 Form of Addendum
	  			

 DRILLING AND OPERATING AGREEMENT 

THIS AGREEMENT made this 21st day of February, 2013, by and between ATLAS RESOURCES, LLC, a Pennsylvania limited liability company (hereinafter referred to as
“Atlas” or “Operator”), 
 and 

ATLAS RESOURCES SERIES 33-2013 L.P. a Delaware limited partnership, (hereinafter referred to as the “Developer”). 

WITNESSETH THAT: 
 WHEREAS, the Operator, by
virtue of the Oil and Natural Gas Leases (the “Leases”) described on Exhibit A attached to and made a part of this Agreement, has certain rights to develop the
                     (            ) initial well locations (the
“Initial Well Locations”) identified on the maps attached to and made a part of this Agreement as Exhibits A-l through A-        ; 

WHEREAS, the Developer, subject to the terms and conditions of this Agreement, desires to acquire certain of the Operator’s rights to develop the Initial
Well Locations and to provide for the development on the terms and conditions set forth in this Agreement of additional well locations (“Additional Well Locations”) that the parties may from time to time designate; and 

WHEREAS, the Operator is in the oil and natural gas exploration and development business, and the Developer desires that Operator, as its independent
contractor, perform certain services in connection with its efforts to develop the aforesaid Initial and Additional Well Locations (collectively the “Well Locations”) and to operate the wells completed on the Well Locations, on the terms
and conditions set forth in this Agreement; 
 NOW THEREFORE, in consideration of the mutual covenants herein contained and subject to the terms and
conditions hereinafter set forth, the parties hereto, intending to be legally bound, hereby agree as follows: 
  

	1.	Assignment of Well Locations; Representations and Indemnification Associated with the Assignment of the Lease; Designation of Additional Well Locations; Outside Activities Are Not Restricted. 

 

	 	(a)	Assignment of Well Locations. The Operator shall execute an assignment of an undivided percentage of Working Interest in the Well Location for each well to the Developer as shown on Exhibit A attached hereto,
which assignment shall be limited by the Operator to the “Prospect,” which is defined as the minimum area permitted by state law or local practice on which one well may be drilled, which may be different for different Horizons.
Notwithstanding the foregoing sentence, “Prospect” shall be deemed: 

  

	 	•	 	in the Marble Falls primary area in north-central Texas, approximately 40 acres for vertical wells and approximately 160 acres for vertical natural gas wells, and further limited to the deepest depth penetrated at the
cessation of drilling activities and as adjusted to take into account lease boundaries; 

  

	 	•	 	for horizontal wells in the Marcellus Shale primary area in northeastern Pennsylvania, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first
perforation to the end of the last perforation and from the bottom of the Tully zone to the bottom of the Marcellus Shale formation, subject to any limitations under Pennsylvania law and as adjusted to take into account lease boundaries;

  

	 	•	 	for horizontal wells in the Utica Shale primary area in eastern Ohio, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first perforation to the
end of the last perforation and from the bottom of the Reedsville Shale to the top of the Trenton Lime formation, subject to any limitations under Ohio law and as adjusted to take into account lease boundaries; and 

  
 1 

	 	•	 	for horizontal wells in the Mississippi Lime primary area in northern Oklahoma, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first
perforation to the end of the last perforation and from the bottom of the Mississippi Unconformity to the top of the Kinderhook formation, subject to any limitations under Oklahoma law and as adjusted to take into account lease boundaries.

 The assignment shall be substantially in the form of Exhibit B attached to and made a part of this Agreement. The amount of
acreage, the wellbore, and any laterals, as the case may be, included in each Initial Well Location and the configuration of the Initial Well Location are indicated on the maps attached to this Agreement as Exhibits A-l through
A-        . The amount of acreage, the wellbore, and any laterals, as the case may be, included in each Additional Well Location and the configuration of the Additional Well Location shall be indicated
on the maps to be attached as exhibits to the applicable addendum to this Agreement as provided in sub-section (c) below. The parties agree that a horizontal well or wells may be drilled on the same well pad on which another well has been
drilled by the Developer. 
  

	 	(b)	Representations and Indemnification Associated with the Assignment of the Lease. With respect to the Lease assignments described in Section 1(a), the Operator represents and warrants to the Developer that:

  

	 	(i)	the Operator is the lawful owner of the Lease and rights and interest under the Lease and of the personal property on the Lease or used in connection with the Lease; 

 

	 	(ii)	the Operator has good right and authority to sell and convey the rights, interest, and property; 

  

	 	(iii)	the rights, interest, and property are free and clear from all liens and encumbrances; and 

  

	 	(iv)	all rentals and royalties due and payable under the Lease have been duly paid. 

 The Operator
agrees to indemnify, protect and hold the Developer and its successors and assigns harmless from and against all costs (including but not limited to reasonable attorneys’ fees), liabilities, claims, penalties, losses, suits, actions, causes of
action, judgments or decrees resulting from the breach of any of the above representations and warranties. It is understood and agreed that, except as specifically set forth above, the Operator makes no warranty or representation, express or
implied, as to its title or the title of the lessors in and to the lands or oil and natural gas interests covered by said Leases. 
  

	 	(c)	Designation of Additional Well Locations. If the parties hereto desire to designate Additional Well Locations to be developed in accordance with the terms and conditions of this Agreement, then the parties shall
execute an addendum substantially in the form of Exhibit C attached to and made a part of this Agreement specifying: 

  

	 	(i)	the undivided percentage of Working Interest and the oil and natural gas Leases to be included as Leases under this Agreement; 

  

	 	(ii)	the amount and configuration of acreage, the wellbore and any laterals included in each Additional Well Location on maps attached as exhibits to the addendum; and 

 

	 	(iii)	their agreement that the Additional Well Locations shall be developed in accordance with the terms and conditions of this Agreement. 

 

	 	(d)	 Outside Activities Are Not Restricted. It is understood and agreed that the assignment of rights under the
Leases and the oil and natural gas development activities contemplated by this Agreement relate only to the Initial Well Locations and the Additional Well Locations. Nothing contained in this Agreement shall be interpreted to restrict in any manner
the right of each of the parties to conduct without the participation of the other party any additional activities relating to exploration, development, drilling, production, or 

  
 2 

	 	
delivery of oil and natural gas on lands adjacent to or in the immediate vicinity of the Well Locations or elsewhere. 

 

	2.	Drilling of Wells; Timing; Extent of Drilling; Interest of Developer; Right to Substitute Well Locations. 

  

	 	(a)	Drilling of Wells. Operator, as Developer’s independent contractor, agrees to drill, complete (or plug) and operate
                     (            ) oil and natural gas wells on the
                     (            ) Initial Well Locations in accordance
with the terms and conditions of this Agreement. Developer, as a minimum commitment, agrees to participate in and pay the Operator’s charges for drilling and completing (or plugging) the wells and any extra costs pursuant to Section 4 in
proportion to the share of the Working Interest owned by the Developer in the wells with respect to all initial wells. It is understood and agreed that, subject to sub-section (e) below, Developer does not reserve the right to decline
participation in the drilling of any of the initial wells to be drilled under this Agreement. 

  

	 	(b)	Timing. Operator shall begin drilling the first well within thirty (30) days after the date of this Agreement, and shall begin drilling each of the other initial wells for which payment is made pursuant to
Section 4(b) before the close of the 90th day after the close of the calendar year in which this Agreement is entered into by Operator and the Developer. Subject to the foregoing time limits,
Operator shall determine the timing of and the order of drilling the Initial Well Locations. 

  

	 	(c)	Extent of Drilling. All of the wells to be drilled under this Agreement shall be: 

  

	 	(i)	drilled and completed (or plugged) in accordance with the generally accepted and customary oil and natural gas field practices and techniques then prevailing in the geographical area of the Well Locations; and

  

	 	(ii)	drilled to a depth sufficient to thoroughly test the objective formation or the deepest assigned depth, whichever is less, in the case of a vertical well, and drilled both vertically and horizontally to thoroughly test
the objective formation, in the case of a horizontal well. 

  

	 	(d)	Interest of Developer. Except as otherwise provided in this Agreement, all costs, expenses, and liabilities incurred in connection with the drilling and other operations and activities contemplated by this
Agreement shall be borne and paid, and all wells, gathering lines in connection with a natural gas well, equipment, materials, and facilities acquired, constructed or installed under this Agreement shall be owned by the Developer in proportion to
the share of the Working Interest owned by the Developer in the wells. Subject to the payment of lessor’s royalties and other royalties and overriding royalties, if any, production of oil and natural gas from the wells to be drilled under this
Agreement shall be owned by the Developer in proportion to the share of the Working Interest owned by the Developer in the wells. Additionally, all costs, expenses, and liabilities incurred in connection with the leasing, developing, drilling,
drilling or acquisition and operation of water disposal or injection wells, and the transportation, treatment or injection of waste water from Developer’s productive wells under this Agreement shall be the sole responsibility of Developer in
proportion to the share of the Working Interest owned by the Developer. In the event Operator provides any services related to water disposal wells, injection wells, transportation and treatment of waste water or similar matters under this
Agreement, Operator shall be paid a competitive monthly fee, as agreed to by Developer and Operator, in addition to the Operator’s other fees and reimbursements under this Agreement. 

 

	 	(e)	Right to Substitute Well Locations. Notwithstanding the provisions of sub-section (a) above, if the Operator or Developer determines in good faith, with respect to any Well Location, before operations begin
under this Agreement on the proposed new well location, that it would not be in the best interest of the Developer to drill a well on the Well Location, then the party making the determination shall notify the other party of its determination and
the basis for its determination and, unless otherwise instructed by Developer, the well shall not be drilled. This determination may be based on: 

  
 3 

	 	(i)	the production or failure of production of any other wells that may have been recently drilled in the immediate area of the Well Location; 

 

	 	(ii)	newly discovered title defects; or 

  

	 	(iii)	any other evidence with respect to the Well Location as may have been obtained. 

 If the well is
not drilled, then Operator shall promptly propose a new well location (including all information for the proposed new well location as Developer may reasonably request) to be substituted for the original Well Location. Developer shall then have
seven (7) business days to either reject or accept the proposed new well location. If the new well location is rejected, then Operator shall promptly propose another substitute well location pursuant to the provisions of this sub-section. 

Once the Developer accepts a substitute well location or does not reject it within the seven (7) day period, this Agreement shall
terminate as to the original Well Location and the substitute well location shall become subject to the terms and conditions of this Agreement. 
  

	3.	Operator – Responsibilities in General; Covenants; Term. 

  

	 	(a)	Operator – Responsibilities in General. Atlas shall be the Operator of the wells and Well Locations subject to this Agreement and, as the Developer’s independent contractor, shall, in addition to its
other obligations under this Agreement do the following: 

  

	 	(i)	arrange for drilling and completing (or plugging) the wells and, if a natural gas well, installing the necessary natural gas gathering line systems and processing and connection facilities; 

 

	 	(ii)	make the technical decisions required in drilling, testing, completing (or plugging), and operating the wells; 

  

	 	(iii)	manage and conduct all field operations in connection with the drilling, testing, completing (or plugging), equipping, operating, and producing the wells; 

 

	 	(iv)	maintain all wells, equipment, gathering lines if a natural gas well, and facilities in good working order during their useful lives; 

 

	 	(v)	perform the necessary administrative and accounting functions; and 

  

	 	(vi)	design water disposal, recycling and treatment plans, if needed, for the wells. 

 In performing
the work contemplated by this Agreement, Operator is an independent contractor with authority to control and direct the performance of the details of the work. 
  

	 	(b)	Covenants. Operator covenants and agrees that under this Agreement: 

  

	 	(i)	it shall perform and carry on (or cause to be performed and carried on) its duties and obligations in a good, prudent, diligent, and workmanlike manner using technically sound, acceptable oil and natural gas field
practices then prevailing in the geographical area of the Well Locations; 

  

	 	(ii)	all drilling and other operations conducted by, for and under the control of Operator shall conform in all respects to federal, state and local laws, statutes, ordinances, regulations, and requirements;

  

	 	(iii)	unless otherwise agreed in writing by the Developer, all work performed pursuant to a written estimate shall conform to the technical specifications set forth in the written estimate and all equipment and materials
installed or incorporated in the wells and facilities shall be new or used and of good quality; 

  
 4 

	 	(iv)	in the course of conducting operations, it shall comply with all terms and conditions, other than any minimum drilling commitments, of the Leases (and any related assignments, amendments, subleases, modifications and
supplements); 

  

	 	(v)	it shall keep the Well Locations and all wells, equipment and facilities located on the Well Locations free and clear of all labor, materials and other types of liens or encumbrances arising out of operations;

  

	 	(vi)	it shall file all reports and obtain all permits and bonds required to be filed with or obtained from any governmental authority or agency in connection with the drilling or other operations and activities; and

  

	 	(vii)	it will provide competent and experienced personnel to supervise drilling, completing (or plugging), and operating the wells and use the services of competent and experienced service companies to provide any third-party
services necessary or appropriate in order to perform its duties. 

  

	 	(c)	Term. Atlas shall serve as Operator under this Agreement until the earliest of: 

  

	 	(i)	the termination of this Agreement pursuant to Section 13; 

  

	 	(ii)	the termination of Atlas as Operator by the Developer at any time in the Developer’s discretion, with or without cause, on sixty (60) days’ advance written notice to the Operator; or 

 

	 	(iii)	the resignation of Atlas as Operator under this Agreement, which may occur on ninety (90) days’ written notice to the Developer at any time after five (5) years from the date of this Agreement, it being
expressly understood and agreed that Atlas shall have no right to resign as Operator before the expiration of the five-year period. 

Any successor Operator shall be selected by the Developer. Nothing contained in this sub-section shall relieve or release Atlas or the
Developer from any liability or obligation under this Agreement that accrued or occurred before Atlas’ removal or resignation as Operator under this Agreement. On any change in Operator under this provision, the then present Operator shall
deliver to the successor Operator possession of all records, equipment, materials and appurtenances used or obtained for use in connection with operations under this Agreement and owned by the Developer. 

 

	4.	Operator’s Charges for Drilling and Completing Wells; Payment; Completion Determination; Dry Hole Determination; Excess Funds and Cost Overruns-Intangible Drilling Costs; Excess Funds and Cost Overruns-Tangible
Costs. 

  

	 	(a)	Operator’s Charges for Drilling and Completing Wells. Each oil and natural gas well that is drilled and completed under this Agreement shall be drilled and completed for an amount equal to the sum of the
following items: (i) the Cost of permits, supplies, materials, equipment, and all other items used in the drilling and completion of a well provided by third-parties, or if the foregoing items are provided by Affiliates of the Developer’s
Managing General Partner, then those items shall be charged at competitive rates; (ii) fees for third-party services; (iii) fees for services provided by the Developer’s Managing General Partner’s Affiliates, which shall be
charged at competitive rates; (iv) an administration and oversight fee at a competitive rate in the area where the well is situated, which is $100,000 per vertical well in the Marble Falls primary area in north-central Texas, $300,000 per
horizontal well in the Marcellus Shale primary area in northeastern Pennsylvania, $300,000 per horizontal well in the Mississippi Lime primary area in northern Oklahoma, and $400,000 per horizontal well in the Utica Shale primary area in eastern
Ohio; and (v) a mark-up in an amount equal to 15% of the sum of (i), (ii), (iii) and (iv), above, for the Developer’s Managing General Partner’s services as general drilling contractor and Operator under this Agreement.

  
 5 

 “Cost” shall mean the price paid by Operator in an arm’s-length transaction.
Additionally, if the Operator drills a well for the Developer that the Developer’s Managing General Partner determines is not an average well in the area because of the well’s depth, complexity associated with either drilling or completion
activities or as otherwise determined by the Managing General Partner, the administration and oversight fee for the well described above, if applicable, and in §4.02(d)(1)(iv) of the Developer’s Partnership Agreement, may be increased to a
competitive rate as determined by the Managing General Partner. 
 The estimated price for drilling and completing each of the wells shall be
set forth in an Authority for Expenditure (“AFE”) that shall be attached to this Agreement as an Exhibit, and shall cover all ordinary costs which may be incurred in drilling and completing (or plugging) each well. This includes without
limitation, site preparation, permits and bonds, roadways, surface damages, power at the site, water and water supply and disposal lines, Operator’s compensation as set forth above, including the Operator’s administration and oversight fee
and 15% mark-up for the well as discussed above, rights-of-way, drilling rigs, equipment and materials, costs of title examinations, logging, cementing, fracturing, casing, meters (other than utility purchase meters), connection facilities, salt
water collection tanks, exchangers, compressors, holding tanks, separators, siphon string, rabbit, tubing, and gathering lines in connection with a natural gas well, and geological, geophysical and engineering services. After each initial well or
additional well is drilled and completed under this Agreement, on request Operator shall prepare and deliver to the Developer an amended AFE that sets forth the allocation between Intangible Drilling Costs and Tangible Costs (as those terms are
defined in Section 4(b), below, for the well based on the actual costs to drill and complete the well. 
  

	 	(b)	Payment. The Developer shall pay to Operator on execution of this Agreement, in proportion to the share of the Working Interest owned by the Developer in the wells, one hundred percent (100%) of the
estimated Intangible Drilling Costs and Tangible Costs, as those terms are defined below, for drilling and completing all initial wells. Notwithstanding the foregoing, any payment from Atlas to Operator for its share of the Developer’s payments
to Operator under this Section 4 as the Managing General Partner of the Developer shall be paid within five (5) business days of notice from Operator that the costs have been incurred. 

The Developer’s payment shall be nonrefundable in all events in order to enable Operator to do the following: 

 

	 	(i)	commence site preparation for the initial wells; 

  

	 	(ii)	obtain suitable subcontractors for drilling and completing or plugging the initial wells at currently prevailing prices; and 

  

	 	(iii)	insure the availability of equipment and materials. 

 For purposes of this Agreement,
“Intangible Drilling Costs” or “IDCs” shall mean those expenditures associated with property acquisition and the drilling and completion of oil and natural gas wells that under present law are generally accepted as fully
deductible currently for federal income tax purposes. This includes: 
  

	 	(i)	all expenditures made with respect to any well before the establishment of production in commercial quantities for wages, fuel, repairs, hauling, supplies and other costs and expenses incident to and necessary for the
drilling of the well and the preparation of the well for the production of oil or natural gas, that are currently deductible pursuant to Section 263(c) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Reg.
Section 1.612-4, which are generally termed “intangible drilling and development costs”; 

  

	 	(ii)	the expense of plugging and abandoning any well before a completion attempt; and 

  
 6 

	 	(iii)	the costs (other than Tangible Costs and Lease acquisition costs) to re-enter and deepen an existing well, complete the well to deeper formations or reservoirs, or plug and abandon the well if it is nonproductive from
the targeted deeper formations or reservoirs. 

 “Tangible Costs” shall mean those costs associated with property
acquisition and the drilling and completion of oil and natural gas wells that are generally accepted as capital expenditures pursuant to the provisions of the Code. This includes: 

 

	 	(i)	all costs of equipment, parts and items of hardware used in drilling and completing (or plugging) a well; 

  

	 	(ii)	the costs (other than IDCs and Lease acquisition costs) to re-enter and deepen an existing well, complete the well to deeper formations or reservoirs, or plug and abandon the well if it is nonproductive from the
targeted deeper formations or reservoirs; and 

  

	 	(iii)	those items necessary to deliver acceptable oil and natural gas production to purchasers to the extent installed downstream from the wellhead of any well, which are required to be capitalized under the Code and its
regulations. 

 With respect to each additional well drilled on the Additional Well Locations, if any, the Developer shall pay
to Operator, in proportion to the share of the Working Interest owned by the Developer in the wells, one hundred percent (100%) of the estimated IDCs and Tangible Costs for drilling and completing the well on execution of the applicable
addendum pursuant to Section l(c) above. The Developer’s payment shall be nonrefundable in all events in order to enable Operator to do the following: 
  

	 	(i)	commence site preparation for the additional wells; 

  

	 	(ii)	obtain suitable subcontractors for drilling and completing the additional wells at currently prevailing prices; and 

  

	 	(iii)	insure the availability of equipment and materials. 

 Developer shall pay, in proportion to the
share of the Working Interest owned by the Developer in the wells, any extra costs incurred for each well pursuant to sub-section (a) above within ten (10) business days of its receipt of Operator’s statement for the extra costs. 

 

	 	(c)	Completion Determination. Operator shall determine whether or not to run the production casing for an attempted completion or to plug and abandon any well drilled under this Agreement. However, a well shall be
completed only if Operator has made a good faith determination that there is a reasonable possibility of obtaining commercial quantities of oil or natural gas. 

  

	 	(d)	Dry Hole Determination. If Operator determines at any time during the drilling or attempted completion of any well drilled under this Agreement, in accordance with the generally accepted and customary oil and
natural gas field practices and techniques then prevailing in the geographic area of the Well Location that the well should not be completed, then it shall promptly and properly plug and abandon the well. 

 

	 	(e)	Excess Funds and Cost Overruns – Intangible Drilling Costs. Any estimated IDCs set forth on the AFE Exhibit and prepaid by Developer with respect to any well that exceed Operator’s actual price
specified in sub-section (a) above for the IDCs of the well shall be retained by Operator and shall be applied, in proportion to the share of the Working Interest owned by the Developer in the well, to: 

 

	 	(i)	the IDCs of an additional well or wells to be drilled on the Additional Well Locations; or 

  

	 	(ii)	any cost overruns owed by the Developer to Operator for IDCs on one or more of the other wells on the Well Locations. 

  
 7 

 Conversely, if Operator’s actual price specified in sub-section (a) above for the IDCs
of any well exceeds the estimated IDCs set forth on the AFE Exhibit that were prepaid by Developer for the well, then: 
  

	 	(i)	Developer shall pay the additional price to Operator within ten (10) business days after notice from Operator that the additional amount is due and owing; or 

 

	 	(ii)	Developer and Operator may agree to delete or reduce Developer’s Working Interest in the well or one or more of the other wells to be drilled under this Agreement to provide funds to pay the additional amounts owed
by Developer to Operator. If doing so results in any excess prepaid IDCs, then the excess shall be applied, in proportion to the share of the Working Interest owned by the Developer in the wells, to: 

 

	 	(a)	the IDCs of an additional well to be drilled on the Additional Well Locations; or 

  

	 	(b)	any cost overruns owed by the Developer to Operator for IDCs on one or more of the other wells on the Well Locations. 

The Exhibits to this Agreement with respect to the affected wells shall be amended as appropriate. 

 

	 	(f)	Excess Funds and Cost Overruns – Tangible Costs. Any estimated Tangible Costs set forth on the AFE Exhibit and prepaid by Developer with respect to any well that exceed Operator’s actual price specified
in sub-section (a) above for the Tangible Costs of the well shall be retained by Operator and shall be applied, in proportion to the share of the Working Interest owned by the Developer in the well, to: 

 

	 	(i)	the Developer’s share of the Tangible Costs or IDCs for an additional well or wells to be drilled on the Additional Well Locations; or 

 

	 	(ii)	any cost overruns owed by the Developer to Operator for the Developer’s Participants’ share of the Tangible Costs or IDCs of one or more of the other wells on the Well Locations. 

Conversely, subject to (iii) below, if Operator’s actual price specified in sub-section (a) above for the Developer’s
Participants’ share of the Tangible Costs of any well (i.e., the actual Tangible Costs) exceeds the estimated Tangible Costs set forth on the AFE Exhibit that were prepaid by Developer for the Developer’s share of the Tangible Costs for
the well, then: 
  

	 	(i)	Developer shall pay the additional price to Operator within ten (10) business days after notice from Operator that the additional amount is due and owing; or 

 

	 	(ii)	Developer and Operator may agree to delete or reduce Developer’s Working Interest in the well or one or more of the other wells to be drilled under this Agreement to provide funds to pay the additional amounts owed
by Developer to Operator. If doing so results in any excess prepaid Tangible Costs, then the excess shall be applied, in proportion to the share of the Working Interest owned by the Developer in the wells, to: 

 

	 	(a)	the Tangible Costs or IDCs of an additional well or wells to be drilled on the Additional Well Locations; or 

  

	 	(b)	any cost overruns owed by the Developer to Operator for the Tangible Costs or IDCs of one or more of the other wells on the Well Locations; and 

 

	 	(iii)	 the Developer’s Participants’ share of the Tangible Costs, in the aggregate, of all of the wells
drilled under this Agreement and any additional wells to be drilled on the Additional Well Locations under any Addendum to this Agreement shall not exceed six percent (6%) of the total price prepaid by Developer to Operator pursuant to
Section 4(b) of this Agreement or any Addendum hereto and the Developer’s Managing General Partner shall pay all remaining Tangible Costs owed by Developer 

  
 8 

	 	
to Operator, provided, however, that the Developer’s Participants’ share of the Tangible Costs of any one well drilled under this Agreement shall be determined by taking into account
the Developer’s Participants’ share of all of the Tangible Costs of all of the wells to be drilled under this Agreement and any Addendum hereto. 

The Exhibits to this Agreement with respect to the affected wells shall be amended as appropriate. 

 

	5.	Title Examination of Well Locations; Developer’s Acceptance and Liability; Additional Well Locations. 

  

	 	(a)	Title Examination of Well Locations, Developer’s Acceptance and Liability. The Developer acknowledges that Operator has furnished Developer with the title opinions identified on Exhibit A, and other
documents and information that Developer or its counsel has requested in order to determine the adequacy of the title to the Initial Well Locations and leased premises subject to this Agreement. The Developer accepts the title to the Initial Well
Locations and leased premises and acknowledges and agrees that, except for any loss, expense, cost, or liability caused by the breach of any of the warranties and representations made by the Operator in Section l(b), any loss, expense, cost or
liability whatsoever caused by or related to any defect or failure of the Developer’s title shall be the sole responsibility of and shall be borne entirely by the Developer. 

 

	 	(b)	Additional Well Locations. Before beginning drilling of any well on any Additional Well Location, Operator shall conduct, or cause to be conducted, a title examination of the Additional Well Location, in order to
obtain appropriate abstracts, opinions and certificates and other information necessary to determine the adequacy of title to both the applicable Lease and the fee title of the lessor to the premises covered by the Lease. The results of the title
examination and such other information as is necessary to determine the adequacy of title for drilling purposes shall be submitted to the Developer for its review and acceptance. No drilling on the Additional Well Location shall begin until the
title has been accepted in writing by the Developer or Developer has otherwise authorized the drilling on the Additional Well Location. After any title has been accepted by the Developer or drilling on the Additional Well Location has begun, any
loss, expense, cost, or liability whatsoever, caused by or related to any defect or failure of the Developer’s title shall be the sole responsibility of and shall be borne entirely by the Developer, unless such loss, expense, cost, or liability
was caused by the breach of any of the warranties and representations made by the Operator in Section l(b). 

  

	6.	Operations Subsequent to Completion of the Wells; Fee Adjustments; Extraordinary Costs; Pipelines; Price Determinations; Plugging and Abandonment. 

 

	 	(a)	Operations Subsequent to Completion of the Wells. Beginning with the month in which a well drilled under this Agreement begins to produce, Operator shall be entitled to an operating fee at a competitive rate in
the area where the well is situated, which is $1,000 per month for each productive vertical well in the Marble Falls primary area in north-central Texas, $1,500 per month for each productive horizontal well in the Marcellus Shale primary area in
northeastern Pennsylvania, $2,000 per month per each productive horizontal well in the Mississippi Lime primary area in northern Oklahoma, and $2,000 per month for each productive horizontal well in the Utica Shale primary area in eastern Ohio. The
operating fees shall be proportionately reduced, on a well-by-well basis to the extent the Developer owns less than 100% of the Working Interest in a well. The operating fees shall be in lieu of any direct charges by Operator for its services or the
provision by Operator of its equipment for normal superintendence and maintenance of the wells and related pipelines and facilities. 

The operating fees shall cover all normal, regularly recurring operating expenses for the production, delivery and sale of natural gas,
including without limitation: 
  

	 	(i)	well tending, routine maintenance and adjustment; 

  

	 	(ii)	reading meters, recording production, pumping, maintaining appropriate books and records; 

  
 9 

	 	(iii)	preparing reports to the Developer and government agencies; and 

  

	 	(iv)	collecting and disbursing revenues. 

 The operating fees shall not cover costs and expenses
related to the following: 
  

	 	(i)	the production and sale of oil; 

  

	 	(ii)	the collection, transportation, treatment, and disposal of salt water or other liquids or waste produced by the wells; 

  

	 	(iii)	the rebuilding of access roads; and 

  

	 	(iv)	the purchase of equipment, materials or third-party services; 

 which, subject to the provisions
of sub-section (c) of this Section 6, shall be invoiced by Operator to the Developer on a monthly basis, and shall be paid by the Developer within ten (10) business days after notice from Operator that the additional amounts are due
and owing in proportion to the share of the Working Interest owned by the Developer in the wells. 
 Any well that is temporarily abandoned
or shut-in continuously for an entire calendar month shall not be considered a producing well for purposes of determining the number of wells in the month subject to the operating fee. 

 

	 	(b)	Fee Adjustments. The monthly operating fee set forth in sub-section (a) above may be adjusted by Operator annually, as of the first day of January (the “Adjustment Date”) of each year, beginning
January 1, 2014. This adjustment, if any, shall not exceed the percentage increase in the average weekly earnings of “Crude Petroleum, Natural Gas, and Natural Gas Liquids” workers, as published by the U.S. Department of Labor, Bureau
of Labor Statistics, and shown in Employment and Earnings Publication, Monthly Establishment Data, Hours and Earning Statistical Table C-2, Index Average Weekly Earnings of “Crude Petroleum, Natural Gas, and Natural Gas Liquids” workers,
SIC Code #131-2, or any successor index thereto, since January l, 2013, in the case of the first adjustment, and since the previous Adjustment Date, in the case of each subsequent adjustment. 

In addition, the monthly operating fee set forth in sub-section (a) above for any given well or wells being operated under this Agreement
may be increased beyond the annual adjustment described in the prior paragraph without advance notice to the Developer, from time-to-time, to the competitive rate in the area where the well(s) are situated, as determined by the Operator in its sole
discretion. 
  

	 	(c)	Extraordinary Costs. Without the prior written consent of the Developer, pursuant to a written estimate submitted by Operator, Operator shall not undertake any single project or incur any extraordinary cost with
respect to any well being produced under this Agreement that is reasonably estimated to result in an expenditure of more than $50,000, unless the project or extraordinary cost is necessary for the following: 

 

	 	(i)	to safeguard persons or property; or 

  

	 	(ii)	to protect the well or related facilities in the event of a sudden emergency. 

 In no event,
however, shall the Developer be required to pay for any project or extraordinary cost arising from the negligence or misconduct of Operator, its agents, servants, employees, subcontractors, licensees, or invitees. 

All extraordinary costs incurred and the cost of projects undertaken under this section with respect to a well being produced under this
Agreement shall be billed to the Developer at the invoice cost of third-party services performed or materials purchased together with a reasonable and competitive charge by Operator 

  
 10 

 
for any services performed directly by it or its Affiliates, in proportion to the share of the Working Interest owned by the Developer in the well. Operator shall have the right to require the
Developer to pay in advance all or a portion of the estimated costs of a project undertaken under this section, before undertaking the project, in proportion to the share of the Working Interest owned by the Developer in the well or wells. 

 

	 	(d)	Pipelines. Subject to Section 2 (d) relating to Developer’s interest in gathering lines for the wells, Developer shall have no interest in any natural gas pipeline and gathering system or
processing plant, including but not limited to gathering systems and processing plants owned by the Operator or its Affiliates. Also, Developer shall not be charged any cost or expense for the construction, expansion or maintenance of those pipeline
and gathering systems or processing plants. 

  

	 	(e)	Price Determinations. Notwithstanding anything in this Agreement to the contrary, the Developer shall pay all costs in proportion to the share of the Working Interest owned by the Developer in the wells with
respect to obtaining price determinations under and otherwise complying with the Natural Gas Policy Act of 1978 and the implementing state regulations. This responsibility shall include, without limitation, preparing, filing, and executing all
applications, affidavits, interim collection notices, reports and other documents necessary or appropriate to obtain price certification, to effect sales of natural gas, or otherwise to comply with the Act and the implementing state regulations.

 Operator agrees to furnish the information and render the assistance as the Developer may reasonably request in order to
comply with the Act and the implementing state regulations without charge for services performed by its employees. 
  

	 	(f)	Plugging and Abandonment. The Developer shall have the right to direct Operator to plug and abandon any well that has been completed under this Agreement as a producer. In addition, notwithstanding any other
provision of this Agreement, Operator shall not plug and abandon any well that has been drilled and completed as a producer under this Agreement before obtaining the written consent of the Developer. In this regard, if the Operator determines that
any well drilled and completed under this Agreement as a producer shall be plugged and abandoned in accordance with the generally accepted and customary oil and natural gas field practices and techniques then prevailing in the geographic area of the
well location, and makes a written request to the Developer for authority to plug and abandon the well and the Developer fails to respond in writing to the request within forty-five (45) days following the date of the request, then the
Developer shall be deemed to have consented to the plugging and abandonment of the well. 

 All costs and expenses related to
plugging and abandoning wells that have been drilled and completed under this Agreement as producing wells shall be borne and paid by the Developer in proportion to the share of the Working Interest owned by the Developer in the wells. Also, at any
time after one (1) year from the date each well drilled and completed under this Agreement is placed into production, Operator shall have the right to deduct each month from the Developer’s share of the proceeds of the sale of the
production from the well up to $200 for the purpose of establishing a fund to cover the Operator’s estimate of the Developer’s share of the costs of eventually plugging and abandoning the well. All of these funds shall be deposited by
Operator in a separate interest bearing escrow account for the account of the Developer, and the total amount so retained and deposited shall not exceed Operator’s reasonable estimate of Developer’s share of the costs of eventually
plugging and abandoning the well. 
  

	7.	Billing and Payment Procedure with Respect to Operation of Wells; Disbursements; Separate Account for Sale Proceeds; Records and Reports; Additional Information. 

 

	 	(a)	Billing and Payment Procedure with Respect to Operation of Wells. Operator shall promptly and timely pay and discharge on behalf of the Developer, in proportion to the share of the Working Interest owned by the
Developer in the wells, the following: 

  
 11 

	 	(i)	all expenses and liabilities payable and incurred by reason of its operation of the wells in accordance with this Agreement, such as severance taxes, royalties, overriding royalties, operating fees, and pipeline
gathering charges; and 

  

	 	(ii)	any third-party invoices received by Operator with respect to the Developer’s share of the costs and expenses incurred in connection with the operation of the wells. 

Operator, however, shall not be required to pay and discharge any of the above costs and expenses that are being contested in good faith by
Operator. 
 Operator shall: 
  

	 	(i)	deduct the foregoing costs and expenses from the Developer’s share of the proceeds of the oil and/or natural gas sold from the wells; and 

 

	 	(ii)	keep an accurate record of the Developer’s account, showing expenses incurred and charges and credits made and received with respect to each well. 

If the Developer’s share of the proceeds of the oil and/or natural gas sold from the wells is insufficient to pay the costs and expenses,
then Operator shall promptly and timely pay and discharge the costs and expenses described above, in proportion to the share of the Working Interest owned by the Developer in the wells, and prepare and submit an invoice to the Developer each month
for those costs and expenses. The invoice shall be accompanied by the form of statement specified in sub-section (b) below, and shall be paid by the Developer within ten (10) business days of its receipt. 

 

	 	(b)	Disbursements. Operator shall disburse to the Developer, on a monthly basis, the Developer’s share of the proceeds received from the sale of oil and/or natural gas sold from the wells operated under this
Agreement, less: 

  

	 	(i)	the amounts charged to the Developer under sub-section (a); and 

  

	 	(ii)	the amount, if any, withheld by Operator for future plugging costs pursuant to sub-section (f) of Section 6. 

Each disbursement made and/or invoice submitted to the Developer pursuant to sub-section (a) above shall be accompanied by a statement
from the Operator itemizing with respect to each well: 
  

	 	(i)	the total production of oil and/or natural gas since the date of the last disbursement or invoice billing period, as the case may be, and the Developer’s share of the production; 

 

	 	(ii)	the total proceeds received from any sale of the production, and the Developer’s share of the proceeds; 

  

	 	(iii)	the costs and expenses deducted from the proceeds and/or being billed to the Developer pursuant to sub-section (a) above; 

  

	 	(iv)	the amount withheld for future plugging costs; and 

  

	 	(v)	any other information as Developer may reasonably request, including without limitation copies of all third-party invoices listed on the statement for the period. 

 

	 	(c)	Separate Account for Sale Proceeds. Operator agrees to deposit all proceeds from the sale of oil and/or natural gas sold from the wells operated under this Agreement in a separate checking account maintained by
Operator. This account shall be used solely for the purpose of collecting and disbursing funds constituting proceeds from the sale of production under this Agreement. 

  
 12 

	 	(d)	Records and Reports. In addition to the statements required under sub-section (b) above, within seventy-five (75) days after the completion or plugging and abandoning of each well drilled under this
Agreement, Operator shall furnish the Developer with a detailed statement itemizing the total costs and charges of the well under Section 4(a) and the Developer’s share of the costs and charges, and any other information as is necessary to
enable the Developer: 

  

	 	(i)	to allocate any extra costs incurred with respect to the well between Tangible Costs and Intangible Drilling Costs; and 

  

	 	(ii)	to determine the amount of the investment tax credit or marginal well production tax credit, if applicable. 

  

	 	(e)	Additional Information. Operator shall promptly furnish the Developer with any additional information as it may reasonably request, including without limitation geological, geophysical, technical, and financial
information, in the form as may reasonably be requested, pertaining to any phase of the operations and activities governed by this Agreement. The Developer and its authorized employees, agents and consultants, including independent accountants
shall, at Developer’s sole cost and expense: 

  

	 	(i)	on at least ten (10) days’ written notice to Operator have access during normal business hours to all of Operator’s records pertaining to operations under this Agreement, including without limitation, the
right to audit the books of account of Operator relating to all receipts, costs, charges, expenses and disbursements and information regarding the separate account required under sub-section (c); and 

 

	 	(ii)	have access, at its sole risk, to any wells drilled by Operator under this Agreement at all times to inspect and observe any machinery, equipment and operations. 

 

	8.	Operator’s Lien; Right to Collect From Oil or Gas Purchaser. 

  

	 	(a)	Operator’s Lien. To secure the payment of all sums due from Developer to Operator under this Agreement, the Developer grants Operator a first and preferred lien on, and security interest in, the following:

  

	 	(i)	the Developer’s interest in the Leases covered by this Agreement; 

  

	 	(ii)	the Developer’s interest in oil and natural gas produced under this Agreement and its share of the proceeds from the sale of the oil and natural gas; and 

 

	 	(iii)	the Developer’s interest in materials and equipment under this Agreement. 

  

	 	(b)	Right to Collect From Oil or Natural Gas Purchaser. If the Developer fails to timely pay any amount owing under this Agreement by it to the Operator, then Operator, without prejudice to other existing remedies,
may collect and retain from any purchaser or purchasers of oil or natural gas the Developer’s share of the proceeds from the sale of the oil and natural gas until the amount owed by the Developer, plus twelve percent (12%) interest on a
per annum basis, and any additional costs (including without limitation actual attorneys’ fees and costs) resulting from the delinquency, has been paid. Each purchaser of oil or natural gas shall be entitled to rely without inquiry on
Operator’s written statement concerning the amount of any default. 

  

	9.	Successors and Assigns; Transfers; Appointment of Agent. 

  

	 	(a)	 Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the undersigned
parties and their respective successors and permitted assigns. However, without the prior written consent of the Developer the Operator may not assign, transfer, pledge, mortgage, hypothecate, sell or otherwise

  
 13 

	 	
dispose of any of its interest in this Agreement, or any of its rights or obligations under this Agreement. Notwithstanding, this consent shall not be required in connection with:

  

	 	(i)	the assignment of work to be performed for Operator to subcontractors, it being understood and agreed, however, that any assignment to Operator’s subcontractors shall not in any manner relieve or release Operator
from any of its obligations and responsibilities under this Agreement; 

  

	 	(ii)	any lien, assignment, security interest, pledge or mortgage arising under Operator’s present or future financing arrangements; or 

 

	 	(iii)	the liquidation, merger, consolidation, or other corporate reorganization or sale of substantially all of the assets of Operator. 

Further, in order to maintain uniformity of ownership in the wells, production, equipment, and leasehold interests covered by this Agreement,
and notwithstanding any other provision of this Agreement to the contrary, the Developer shall not, without the prior written consent of Operator, sell, assign, transfer, encumber, mortgage or otherwise dispose of any of its interest in the wells,
production, equipment, leasehold interests, or drilling rights covered by this Agreement unless the disposition encompasses either: 
  

	 	(i)	the entire interest of the Developer in all wells, production, equipment and leasehold interests and drilling rights subject to this Agreement; or 

 

	 	(ii)	an equal undivided interest in all such wells, production, equipment, leasehold interests, and drilling rights. 

  

	 	(b)	Transfers. Subject to the provisions of sub-section (a) above, any sale, encumbrance, transfer or other disposition made by the Developer of its interests in the wells, production, equipment, leasehold
interests, and drilling rights covered by this Agreement shall be made: 

  

	 	(i)	expressly subject to this Agreement; 

  

	 	(ii)	without prejudice to the rights of the Operator; and 

  

	 	(iii)	in accordance with and subject to the provisions of the Leases covering the Well Locations. 

  

	 	(c)	Appointment of Agent. If at any time the interest of the Developer is divided among or owned by co-owners, Operator may, in its discretion, require the Developer to appoint a single trustee or agent with full
authority to do the following: 

  

	 	(i)	receive notices, reports and distributions of the proceeds from production; 

  

	 	(ii)	approve expenditures; 

  

	 	(iii)	receive billings for and approve and pay all costs, expenses and liabilities incurred under this Agreement; 

  

	 	(iv)	exercise any rights granted to the Developer under this Agreement; 

  

	 	(v)	grant any approvals or authorizations required or contemplated by this Agreement; 

  

	 	(vi)	sign, execute, certify, acknowledge, file and/or record any agreements, contracts, instruments, reports, or documents whatsoever in connection with this Agreement or the activities contemplated by this Agreement; and

  

	 	(vii)	deal generally with, and with power to bind, the Developer with respect to all activities and operations contemplated by this Agreement. 

  
 14 

 However, the Developer shall continue to have the right to enter into and execute all contracts
or agreements for its share of the oil and natural gas produced from the wells drilled under this Agreement in accordance with sub-section (c) of Section 11. 
  

	10.	Operator’s Insurance; Subcontractors’ Insurance; Operator’s Liability. 

  

	 	(a)	Operator’s Insurance. Operator shall obtain and maintain at its own expense, so long as it is Operator under this Agreement, all required Workmen’s Compensation Insurance and comprehensive general
public liability insurance in amounts and coverage not less than $1,000,000 per person per occurrence for personal injury or death and $1,000,000 for property damage per occurrence, which shall include coverage for blow-outs as well as total
liability coverage of not less than $10,000,000. 

 Subject to the above limits, the Operator’s general public liability
insurance shall be in all respects comparable to that generally maintained in the industry with respect to services of the type to be rendered and activities of the type to be conducted under this Agreement. Operator’s general public liability
insurance shall, if permitted by Operator’s insurance carrier: 
  

	 	(i)	name the Developer as an additional insured party; and 

  

	 	(ii)	provide that at least thirty (30) days’ prior notice of cancellation and any other adverse material change in the policy shall be given to the Developer. 

However, the Developer shall reimburse Operator for the additional cost, if any, of including it as an additional insured party under the
Operator’s insurance. 
 Current copies of all policies or certificates of the Operator’s insurance coverage shall be delivered to
the Developer on request. It is understood and agreed that Operator’s insurance coverage may not adequately protect the interests of the Developer and that the Developer shall carry at its expense the excess or additional general public
liability, property damage, and other insurance, if any, as the Developer deems appropriate. 
  

	 	(b)	Subcontractors’ Insurance. Operator shall require all of its subcontractors to carry all required Workmen’s Compensation Insurance and to maintain such other insurance, if any, as Operator in its
discretion may require. 

  

	 	(c)	Operator’s Liability. Operator’s liability to the Developer as Operator under this Agreement shall be limited to, and Developer shall indemnify the Operator and hold it harmless from, claims, penalties,
liabilities, obligations, charges, losses, costs, damages, or expenses (including but not limited to reasonable attorneys’ fees), as provided in §4.05 of the Developer’s Partnership Agreement. 

 

	11.	Internal Revenue Code Election; Relationship of Parties; Right to Take Production in Kind. 

  

	 	(a)	Internal Revenue Code Election. With respect to this Agreement, each of the parties elects under Section 761(a) of the Internal Revenue Code of 1986, as amended, to be excluded from the provisions of
Subchapter K of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended. If the income tax laws of the state or states in which the wells covered by this Agreement are located contain, or may subsequently contain, a similar
election, each of the parties agrees that the election shall be exercised. 

 Beginning with the first taxable year of
operations under this Agreement, each party agrees that the deemed election provided by Section 1.761-2(b)(2)(ii) of the Regulations under the Internal Revenue Code of 1986, as amended, will apply; and no party will file an application under
Section 1.761-2 (b)(3)(i) of the Regulations to revoke the election. Each party agrees to execute the documents and make the filings with the appropriate governmental authorities as may be necessary to effect the election. 

  
 15 

	 	(b)	Relationship of Parties. It is not the intention of the parties to create, nor shall this Agreement be construed as creating, a mining or other partnership or association or to render the parties liable as
partners or joint venturers for any purpose. Operator shall be deemed to be an independent contractor and shall perform its obligations as set forth in this Agreement. 

 

	 	(c)	Right to Take Production in Kind. Subject to the provisions of Section 8 above and this Section 11, the Developer shall have the exclusive right to execute all contracts relating to the sale or
disposition of its proportionate share of the production from the wells drilled under this Agreement and sell or dispose of its proportionate share of all oil and natural gas produced from the wells to be drilled under this Agreement, exclusive of
production: 

  

	 	(i)	that may be used in development and producing operations; 

  

	 	(ii)	unavoidably lost; and 

  

	 	(iii)	used to fulfill any free natural gas obligations under the terms of the applicable Lease or Leases. 

Except as provided below, Operator shall not have any right to sell or otherwise dispose of the Developer’s share of the oil and natural
gas. 
 Developer shall have no interest in any natural gas or oil supply agreements of Operator, except the right to receive
Developer’s share of the proceeds received from the sale of any natural gas or oil from wells developed under this Agreement. The Developer agrees to designate Operator or Operator’s designated bank agent as the Developer’s collection
agent in any contracts. On request, Operator shall assist Developer in arranging the sale or disposition of Developer’s oil and natural gas under this Agreement and shall promptly provide the Developer with all relevant information that comes
to Operator’s attention regarding opportunities for selling production. 
 If Developer fails to take in kind or separately dispose of
its proportionate share of the oil and natural gas produced under this Agreement, then Operator shall have the right, subject to the revocation at will by the Developer, but not the obligation, to purchase the oil and natural gas or sell it to
others at any time and from time to time, for the account of the Developer at the best price obtainable in the area for the production. Notwithstanding, Operator shall have no liability to Developer should Operator fail to market the production.

 Any such purchase or sale by Operator shall be subject always to the right of the Developer to exercise at any time its right to take
in-kind, or separately dispose of, its share of oil and natural gas not previously delivered to a purchaser. Any purchase or sale by Operator of the Developer’s share of oil and natural gas under this Agreement shall be only for reasonable
periods of time as are consistent with the minimum needs of the oil and natural gas industry under the particular circumstances, but in no event for a period in excess of one (1) year. 

 

	12.	Effect of Force Majeure; Definition of Force Majeure; Limitation. 

  

	 	(a)	Effect of Force Majeure. If Operator is rendered unable, wholly or in part, by force majeure (as defined below) to carry out any of its obligations under this Agreement, including but not limited to beginning the
drilling of one or more wells by the applicable times set forth in Section 2(b) or any Addendum to this Agreement, the obligations of the Operator, so far as it is affected by the force majeure, shall be suspended during, but no longer than,
the continuance of the force majeure. The Operator shall give the Developer prompt written notice of the force majeure with reasonably full particulars concerning it. Operator shall use all reasonable diligence to remove the force majeure as quickly
as possible to the extent the same is within its reasonable control. 

  

	 	(b)	 Definition of Force Majeure. The term “force majeure” shall mean an act of God, strike, lockout,
or other industrial disturbance, act of the public enemy, war, terrorist acts, blockade, public riot, lightning, 

  
 16 

	 	
fire, storm, flood, explosion, governmental restraint, unavailability of drilling rigs, equipment or materials, plant shut-downs, curtailments by oil and natural gas purchasers and any other
causes whether of the kind specifically enumerated above or otherwise, which directly preclude Operator’s performance under this Agreement and are not reasonably within the control of the Operator including, but not limited to, the inability of
Operator to begin the drilling of the wells subject to this Agreement by the applicable times set forth in Section 2(b) or in any Addendum to this Agreement due to decisions of third-party operators to delay drilling the wells, poor weather
conditions, inability to obtain drilling permits, access rights to the drilling site or title problems. 

  

	 	(c)	Limitation. The requirement that any force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes, lockouts, or other labor difficulty affecting the Operator contrary
to its wishes. The method of handling these difficulties shall be entirely within the discretion of the Operator. 

  

	13.	Term. 

 This Agreement shall become effective when executed by Operator and the
Developer. Except as provided in sub-section (c) of Section 3, this Agreement shall continue and remain in full force and effect for the productive lives of each well being operated under this Agreement. 

 

	14.	Governing Law; Invalidity. 

  

	 	(a)	Governing Law. This Agreement shall be governed by, construed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania, excluding its conflict of law provisions. 

 

	 	(b)	Invalidity. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions of this Agreement, and this Agreement shall be construed in all respects as if
the invalid or unenforceable provision were omitted. 

  

	15.	Integration; Written Amendment. 

  

	 	(a)	Integration. This Agreement and the Exhibits to this Agreement constitute and represent the entire understanding and agreement of the parties with respect to the subject matter of this Agreement and supersede all
prior negotiations, understandings, agreements, and representations relating to the subject matter of this Agreement. 

  

	 	(b)	Written Amendment. No change, waiver, modification, or amendment of this Agreement shall be binding or of any effect unless in writing duly signed by the party against which the change, waiver, modification, or
amendment is sought to be enforced. 

  

	16.	Waiver of Default or Breach. 

 No waiver by any party to any default of or breach by any
other party under this Agreement shall operate as a waiver of any future default or breach, whether of like or different character or nature. 
  

	17.	Notices. 

 Unless otherwise provided in this Agreement, all notices, statements,
requests, or demands that are required or contemplated by this Agreement shall be in writing and shall be hand-delivered or sent by registered or certified mail, postage prepaid, to the following addresses until a party’s address is changed by
certified or registered letter so addressed to the other party: 
  

	 	(i)	If to the Operator, to: 

 Atlas Resources, LLC 

Park Place Corporate Center One 

  
 17 

 1000 Commerce Drive, 4th Floor 

Pittsburgh, Pennsylvania 15275 

Attention: President 
  

	 	(ii)	If to Developer, to: 

 Atlas Resources Series 33-2013 L.P. 

c/o Atlas Resources, LLC 
 Park
Place Corporate Center One 
 1000 Commerce Drive, 4th Floor 

Pittsburgh, Pennsylvania 15275 

Notices that are served by registered or certified mail on the parties in the manner provided above shall be deemed sufficiently served or
given for all purposes under this Agreement at the time the notice is hand-delivered or mailed in any post office or branch post office regularly maintained by the United States Postal Service or any successor. All payments shall be hand-delivered
or sent by United States mail, postage prepaid to the addresses set forth above until a party’s address is changed by certified or registered letter so addressed to the other party. 

 

	18.	Interpretation. 

 The titles of the Sections in this Agreement are for convenience of
reference only and shall not control or affect the meaning or construction of any of the terms and provisions of this Agreement. As used in this Agreement, the plural shall include the singular and the singular shall include the plural whenever
appropriate. 
  

	19.	Counterparts. 

 The parties may execute this Agreement in any number of separate
counterparts, each of which, when executed and delivered by the parties, shall have the force and effect of an original; but all counterparts of this Agreement shall be deemed to constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. 

 

							
	 OPERATOR:
	 		 	ATLAS RESOURCES, LLC
				
		 		 	By:	 	/s/ Matthew Jones
		 		 		 	
		 		 		 	

  

							
	 DEVELOPER:
	 		 	 ATLAS RESOURCES SERIES 33-2013 L.P.
  

By its Managing General Partner:
 ATLAS RESOURCES,
LLC

				
		 		 	By:	 	/s/ Freddie M. Kotek
		 		 		 	
		 		 		 	

  
 18 

 DESCRIPTION OF LEASES AND INITIAL WELL LOCATIONS 

[To be completed as information becomes available] 
  

	1.	WELL LOCATION 

  

	 	(a)	Oil and Gas Lease from ______________________________________ dated _____________________ and recorded in Deed Book Volume __________, Page __________ in the Recorder’s Office of County, ____________, covering
approximately _________ acres in ____________________________ Township, ___________________ County, __________________________. 

  

	 	(b)	The portion of the leasehold estate constituting the ____________________________________________ No. __________ Well Location is described on the map attached hereto as Exhibit
A-l. 

  

	 	(c)	Title Opinion of _________________________________, ____________________________________, ________________________________________, ________________________________________, dated ___________________, 20____.

  

	 	(d)	The Developer’s interest in the oil and gas leasehold estate constituting this Well Location is an undivided         % Working Interest, subject to the
landowner’s royalty interest, overriding royalty interests and any other exceptions and burdens described in the Title Opinion. 

  
 Exhibit A 

 Well Name, Twp. 

County, State 
 ASSIGNMENT OF
OIL AND NATURAL GAS LEASE 
 STATE/COMMONWEALTH OF _______________________________ 

COUNTY OF _____________________________ 
 KNOW ALL
MEN BY THESE PRESENTS: 
 THAT the undersigned _________________________________ (collectively, hereinafter called
“Assignor”), for and in consideration of One Dollar and other valuable consideration ($1.00 ovc), the receipt and adequacy of which is hereby acknowledged, does hereby sell, assign, transfer and set over unto
_________________________________ (hereinafter called “Assignee”), an undivided _____________________________ in, and to, the oil and natural gas lease(s) described as follows: 

with respect to the well(s) known as _________________________________, but only to the extent described as follows (with all other interests being expressly
reserved to Assignor) [check one box to show applicability]: 
  

	☐	in the Marble Falls primary area in north-central Texas, approximately 40 acres for vertical oil wells and approximately 160 acres for vertical natural gas wells, and further limited to the deepest depth penetrated at
the cessation of drilling activities and as adjusted to take into account lease boundaries; 

  

	☐	for horizontal wells in the Marcellus Shale primary area in northeastern Pennsylvania, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first
perforation to the end of the last perforation and from the bottom of the Tully zone to the bottom of the Marcellus Shale formation, subject to any limitations under Pennsylvania law and as adjusted to take into account lease boundaries;

  

	☐	for horizontal wells in the Utica Shale primary area in eastern Ohio, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first perforation to the
end of the last perforation and from the bottom of the Reedsville Shale to the top of the Trenton Lime formation, subject to any limitations under Ohio law and as adjusted to take into account lease boundaries; and 

 

	☐	for horizontal wells in the Mississippi Lime primary area in northern Oklahoma, the wellbore, plus 125 feet on either side of the center line of a lateral in the well, extending from the beginning of the first
perforation to the end of the last perforation and from the bottom of the Mississippi Unconformity to the top of the Kinderhook formation, subject to any limitations under Oklahoma law and as adjusted to take into account lease boundaries.

 (EXCEPTIONS:______________________________________________________________________) together with the rights incident thereto and the
personal property thereto, appurtenant thereto, or used, or obtained, in connection therewith. 

  
 Exhibit B 

(Page 1) 

 And for the same consideration, the Assignor covenants with the said Assignee and his or its
heirs, successors, or assigns that Assignor is the lawful owner of said lease and rights and interest thereunder and of the personal property thereon or used in connection therewith; that the undersigned has good right and authority to sell and
convey the same; and that said rights, interest and property are free and clear from all liens and encumbrances, and that all rentals and royalties due and payable thereunder have been duly paid. 

[remainder of page intentionally left blank; signatures appear on following page] 

  
 Exhibit B 

(Page 2) 

 IN WITNESS WHEREOF, and intending to be legally bound, the undersigned Assignor has signed and
sealed this instrument the ______ day of _______________, 20____. 
  

			
	Signed and acknowledged in the presence of	  	      

	      
	  	      

	      
	  	      

  
 Exhibit B 

(Page 3) 

 ADDENDUM NO. __________ 

TO DRILLING AND OPERATING AGREEMENT 

DATED ___________________, 20__ 
 THIS
ADDENDUM NO. __________ made and entered into this ______ day of ________________, 20__, by and between ATLAS RESOURCES, LLC, a Pennsylvania limited liability company (hereinafter referred to as “Operator”), 

and 
 ATLAS RESOURCES SERIES 33-2013 L.P., a
Delaware limited partnership, (hereinafter referred to as the Developer). 
 WITNESSETH THAT: 

WHEREAS, Operator and the Developer have entered into a Drilling and Operating Agreement dated ___________________, 20__, (the “Agreement”), which
relates to the drilling and operating of ________________ (            )wells on the ________________
(            ) Initial Well Locations identified on the maps attached as Exhibits A-l through A-______
to the Agreement, and provides for the development on the terms and conditions set forth in the Agreement of Additional Well Locations as the parties may from time to time designate; and 

WHEREAS, pursuant to Section l(c) of the Agreement, Operator and Developer presently desire to designate ________________ Additional Well Locations described
below to be developed in accordance with the terms and conditions of the Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants contained in
this Addendum and intending to be legally bound, the parties agree as follows: 
 1. Pursuant to Section l(c) of the Agreement, the Developer hereby
authorizes Operator to drill, complete (or plug) and operate, on the terms and conditions set forth in the Agreement and this Addendum No.__________, ________________ additional wells on the ________________ Additional Well Locations described on
Exhibit A to this Addendum and on the maps attached to this Addendum as Exhibits A-______ through A-______. 

2. Operator, as Developer’s independent contractor, agrees to drill, complete (or plug) and operate the additional wells on the Additional Well Locations
in accordance with the terms and conditions of the Agreement and further agrees to begin drilling the first additional well within thirty (30) days after the date of this Addendum and to begin drilling all of the additional wells before the
close of the 90th day after the close of the calendar year in which the Agreement was entered into by Operator and the Developer, or, if this Addendum is dated after that 90 day period, to begin
drilling the first additional well within thirty (30) days after the date of this Addendum and to drill and complete (or plug) all of the remaining additional wells by the end of the calendar year in which this Addendum is dated. 

3. Developer acknowledges that: 
  

	 	(a)	Operator has furnished Developer with the title opinions identified on Exhibit A to this Addendum; and 

  

	 	(b)	such other documents and information which Developer or its counsel has requested in order to determine the adequacy of the title to the above Additional Well Locations. 

The Developer accepts the title to the Additional Well Locations and leased premises in accordance with the provisions of Section 5 of the Agreement.

 4. The drilling and operation of the additional wells on the Additional Well Locations shall be in accordance with and subject to the terms and
conditions set forth in the Agreement as supplemented by this Addendum No. __________ and except as previously supplemented, all terms and conditions of the Agreement shall remain in full force and effect as originally written. 

  
 Exhibit C 

(Page 1) 

	5.	This Addendum No. __________ shall be legally binding on, and shall inure to the benefit of, the parties and their respective successors and permitted assigns. 

WITNESS the due execution of this Addendum on the day and year first above written. 
  

							
	OPERATOR:	 		 	ATLAS RESOURCES, LLC
				
		 		 	By	 	
                     
                                         
               

		 		 		 	
		 		 		 	

  

							
	DEVELOPER:	 		 	 ATLAS RESOURCES SERIES 33-2013 L.P.
  

By its Managing General Partner:
 ATLAS RESOURCES,
LLC

				
		 		 	By	 	
                     
                                         
               

		 		 		 	
		 		 		 	

  
 Exhibit C 

(Page 2)EX-10.2

 Exhibit 10.2 

Amended and Restated 

Gas Purchase, Gathering and Processing Agreement 

Between 
 ARP Oklahoma, LLC

 Supplier 
 And 

SemGas, L.P. 
 Processor

 SemGas, L.P., Agreement # 13-SG1022 

Agreement Date: August 1, 2013 

Agreement Effective Date: August 1, 2013 

  
 1 

 AMENDED AND RESTATED 

GAS PURCHASE, GATHERING AND PROCESSING AGREEMENT 

This AMENDED AND RESTATED GAS PURCHASE, GATHERING AND PROCESSING AGREEMENT (“Agreement”) (SemGas, L.P. Contract # 13-SG1022), is made and entered into by and between SEMGAS, L.P., an Oklahoma Limited Partnership, hereinafter referred to as “Processor,” and ARP OKLAHOMA, LLC, an Oklahoma Limited
Liability Company, hereinafter referred to as “Supplier” and is effective as of August 1, 2013 (“Effective Date”). 

WHEREAS, Supplier has certain Gas available requiring gathering services and has the right to have such Gas processed; 

WHEREAS, Supplier desires to have Processor purchase, gather and process or cause the Gas to be processed; 

WHEREAS, Processor desires to purchase, gather and process the Gas, or cause the Gas to be processed; 

WHEREAS, Processor had a Gas Purchase, Gathering and Processing Agreement dated November 1, 2005 with Altex Resources, Inc.
(“Original Agreement”); 
 WHEREAS, the Original Agreement was amended effective January 1, 2011 among other things to
reflect the name change of Altex Resources, Inc. to Equal Energy US Inc.; 
 WHEREAS, the Original Agreement as amended was amended
again effective September 21, 2012 to reflect the assignment from Equal Energy US Inc. to ARP Oklahoma, LLC; 
 WHEREAS, the
parties desire to amend and restate the agreement in its entirety so that the parties’ understanding and agreement will be contained in a single document which will supersede and replace all prior agreements as of the Effective Date; 

NOW, THEREFORE, in consideration of the mutual agreement and covenants herein contained, Supplier and Processor agree, as follows: 

ARTICLE I 
 DEDICATION
AND INTENT 
 1.1 Dedication and Gas Delivery Rights. Supplier commits and agrees to deliver and sell to Processor,
and Processor agrees to receive and purchase from Supplier, all Gas produced from all formations and wells now or hereafter located upon the leases or lands described on the attached Exhibit D to this Agreement (the “Committed
Area”). Supplier agrees to use commercially reasonable efforts to secure the dedication of its working interest owners either by their ratification of this Agreement or, in the alternative, Supplier will execute a Joint Operating Agreement with
its working interest owners which provides that Supplier has the right to commit to this Agreement l00% of the working interest of the wells in the Committed Area. In the event that, prior to the date of the Original Agreement, Supplier had
dedicated any of 

  
 2 

 
Supplier’s Gas produced from the Committed Area to a third party, such interest will not be dedicated under this Agreement until the termination of the agreement with the third party. At the
termination of the third party agreement, the prior dedicated interest will become dedicated to Processor under this Agreement. By virtue of oil and gas leases, fee interests, mineral interests, contractual arrangements, or other legal right,
Supplier owns the right to sell during the term hereof all the Gas from the Committed Area. 
 1.2 Connection Obligations.
Processor shall, subject to the terms hereof, have the obligation to construct and/or maintain a sufficient length of pipe designed to operate at the pressures set forth herein to connect any Gas well(s) in the Committed Area from which Supplier
produces Gas that is subject to this Agreement. Supplier shall construct the required gathering pipelines and metering facilities concurrently with the development and completion of new wells within the Committed Area which are contemplated to
produce Gas. Supplier shall provide Processor with sufficient information and advance notice regarding the drilling and development plans of Supplier to allow Processor to contract for services, procure equipment and materials, secure permits, right-of-way, or licenses in a prudent, timely and commercially reasonable manner. Processor and Supplier shall coordinate construction and the drilling activities of Supplier
and schedules so as to minimize interference between construction and drilling activities. If Processor is unable to connect the additional well(s) within thirty (30) days after completion of such well, then Supplier shall have the option, but
not the obligation, to release the subject well to a third party except in cases where such inability of Processor to connect is due to a Force Majeure condition. In the case of Force Majeure, Processor shall receive an extension until Force Majeure
issue is resolved. 
 1.3 Remote Connections, Extension of Gathering Facilities. In the event Processor connects to
Supplier’s well(s) beyond two miles from existing pipelines, then Supplier will guarantee delivery of an additional 500,000 MMBtu multiplied by the actual length in miles of each separate gathering system that is beyond two miles from existing
Gathering Facilities (expressed in tenths (1/10th) of a mile) (“Additional Connect Amount”). The Supplier shall deliver to Processor the Additional Connect Amount within three years from
the date of connection. In the event the full Additional Connect Amount is not provided within the allowed three years, or prior to expiration of the Agreement, Supplier agrees to pay Processor a Well Connect Fee equal to the (Additional Connect
Amount less the amount actually provided toward the Additional Connect Amount at either the end of three years or as of date of expiration) multiplied by $.53. The Well Connect Fee shall be paid within 30 days of either the end of the three year
period or expiration of the Agreement whichever is less. Notwithstanding the foregoing, if Supplier’s well is so remote that, in Processor’s sole judgment, Processor cannot, even with the exercise of due diligence and commercially
reasonable efforts, either connect the remote well to the Gathering Facilities or secure services from a third-party processor/gatherer within thirty (30) days after completion of such well, whether any of the conditions of Article X apply or
not, then Processor shall receive an extension of time, as mutually agreed to by Supplier and Processor, sufficient to complete the connection of the well and Supplier shall not have an option to release the well to a third party during the course
of such extension. 
 1.4 Gathering and Processing. Processor will construct, own and operate a Gas pipeline and Gas gathering
facilities located in the vicinity of the Committed Area within the State of Oklahoma (collectively the “Gathering Facilities”). Processor shall cause the Gas from the Committed Area measured at the Receipt Points (“Committed
Gas”) to be gathered. The 

  
 3 

 
Committed Gas less the Field Fuel Gas shall be referred to herein as the “Plant Inlet Volume.” Processor shall cause the Plant Inlet Volume, to be processed at Processor’s Gas
processing plant(s), any future Gas processing plants installed by Processor, or at a third party Gas processing plant(s) (each a “Plant”), including, without limitation, those more particularly described on Exhibit C hereto. Processor
agrees to process the Plant Inlet Volume at the Plant for the removal of Liquid Hydrocarbons contained in the Plant Inlet Volume, subject to the terms and limitations set forth herein. 

1.5 Supplier’s Representative. In the event this Agreement is ratified by other working interest owners, such ratifying
parties shall be bound by the terms and provisions of this Agreement as if each was a party designated “Supplier” under this Agreement. In such event, each party-Supplier hereto initially designates ARP Oklahoma, LLC to serve as their
representative hereunder to do and perform all acts and duties required with respect to such party’s obligations to tender or to deliver Gas hereunder in the amounts and in the manner provided herein, to receive statements for all Gas delivered
hereunder, to allocate the total volumes delivered and to receive and distribute such payments due and payable to each such party. Processor may act, and shall be fully protected in acting, in reliance upon any and all such acts and things done or
performed by the representative on behalf of each such party as fully and effectively as though each had done, performed, made or executed the same. Any notice, request, demand, statement or payment to Supplier under this Agreement, shall be sent to
the representative as provided herein. Such parties may change their representative and designate one (1) of their number as the new representative from time to time by delivery of written notice of such change, signed by all such parties to
Processor. 
 ARTICLE II 

DEFINITIONS 
 2.1
“Accounting Period” shall mean a period from nine o’clock (9:00) a.m. on the first day of a calendar month to nine o’clock (9:00) a.m. on the first day of the next succeeding calendar month, or such other mutually agreed to
period of time; provided, however, that the “Initial Accounting Period” shall commence at nine o’clock (9:00) a.m. on the Initial Processing Date (as defined in Paragraph 2.19 of this Agreement) and shall continue for a period of
consecutive calendar days until nine o’clock (9:00) a.m. on the first day of the next succeeding calendar month. 
 2.2
“Additional Connect Amount” shall have the meaning set forth in Section 1.3. 
 2.3 “Agreement”
shall have the meaning set forth in the Preamble. 
 2.4 “British Thermal Unit” herein called “Btu” shall
mean the amount of heat required to raise the temperature of one pound of water 1 degree from 59 to 60 degrees Fahrenheit. “MMBtu” shall mean 1,000,000 Btu’s. 

2.5 “Comingled Residue Gas” shall have the meaning set forth in Section.4.2. 

2.6 “Committed Area” shall have the meaning set forth in Section 1.1. 

2.7 “Committed Gas” shall have the meaning set forth in Section 1.4. 

  
 4 

 2.8 “Cubic Foot of Gas” herein called “cf’ shall mean the amount of
gas required to fill a cubic foot of space at a base pressure of 14.73 psia and at a base temperature of 60 degrees Fahrenheit. “Mcf’ shall mean 1,000 cfs. “MMcf’ shall mean 1,000,000 cfs. “MMcfd” shall mean MMcf per
day. 
 2.9 “Day” shall mean a period of twenty-four (24) consecutive hours beginning and ending at nine o’clock
(9:00) a.m. Central Daylight or Standard time, whichever is in effect, or such other mutually agreed to period of time. 
 2.10
“Delivery Point(s)” shall mean the point(s) where the meter(s) is located at the outlet of the Plant at the interconnection with the Gathering Facilities or Downstream Pipeline. 

2.11 “Downstream Pipeline” shall mean the existing pipeline immediately downstream of the Delivery Point(s) established
hereunder. 
 2.12 “Effective Date” shall have the meaning set forth in the Preamble. 

2.13 “Field Fuel Gas” shall mean the fuel and losses consumed in operation of the Gathering Facilities, including field
compression and dehydration. The applicable field fuel percentage set forth in the following table shall be used for purposes of calculating Field Fuel Gas: 
  

							
	 Gathering System

Contract Pressure
	  	Monthly Average Total Gas delivered to Receipt
Points including all third party volumes, for the
Accounting Period
(each Plant)	  	Field Fuel
Percentage	 
	 50 psig
	  	0 – 5,000 Mcfd	  	 	10%	 
	 50 psig
	  	5,001 Mcfd –10,000 Mcfd	  	 	8.5%	 
	 50 psig
	  	Greater than 10,000 Mcfd	  	 	7%	 

 Field Fuel Gas for purposes of this Agreement is agreed to equal the applicable field fuel percentage (from the preceding
table) multiplied by the Committed Gas measured at the Receipt Points (in MMBtu’s). 
 2.14 “Force Majeure” shall have
the meaning set forth in Section 10.2. 
 2.15 “Gas” shall mean natural gas as produced in its natural state including
gas from gas wells and casinghead gas produced in association with crude oil that meets the quality standards contained in this Agreement. 

2.16 “Gathering Facilities” shall have the meaning set forth in Section 1.4. 

2.17 “Gross Heating Value” shall mean the number of Btu’s produced by the complete combustion, at constant pressure, of
the amount of Gas which would occupy a volume of 1.0 cf at a temperature of 60° Fahrenheit on a water-free basis and at a pressure of 14.73 psia and under standard gravitational force (32.17 ft per sec per sec) with air of the same temperature
and 

  
 5 

 
pressure as the Gas, when the products of combustion are cooled to the initial temperature of the Gas and air, and when the vapors produced by combustion have condensed to the liquid state. The
Gross Heating Value at each Receipt Point(s) shall be deemed to be saturated. 
 2.18 “Indemnifying Party” shall have the
meaning set forth in Section 9.3. 
 2.19 “Initial Processing Date” shall mean the first day of flow of gas from the
Delivery Point. 
 2.20 “Liquid Hydrocarbon Product(s)” shall mean oil, condensate, and liquefiable hydrocarbons
(including, to the extent contained in Plant Inlet Volume, ethane, propane, butane, and natural gasoline products and mixtures thereof, and shall include methane to the extent that removal thereof is necessary in removing other liquefiable
hydrocarbons) removed from the Plant Inlet Volume by mechanical separation, extraction, condensation, compression, absorption, stripping, refrigeration, fractionation, or other gas processing. 

2.21 “Liquid Hydrocarbons” shall have the same meaning as Liquid Hydrocarbon Products” and shall also mean such Liquid
Hydrocarbon Products while components of Plant Inlet Volume (in gaseous or liquid form). 
 2.22 “Party” shall mean
Processor or Supplier individually. “Parties” shall mean Processor and Supplier collectively. 
 2.23 “Plant”
shall have the meaning set forth in Section 1.4. 
 2.24 “Plant Fuel Gas” shall mean the fuel gas, flared gas,
lost and unaccounted for gas, and electricity involved in operation of the Plant. Plant Fuel Gas for purposes of this Agreement is agreed to equal four and one-half percent (4.5%) of the Plant Inlet Volume (in
MMBtu’s). 
 2.25 “Plant Inlet Volume” Shall have the meaning set forth in Section 1.4. 

2.26 “Primary Term” shall have the meaning set forth in Section 8.1. 

2.27 “Processor” shall have the meaning set forth in the Preamble. 

2.28 “psia” shall mean pounds per square inch absolute. 

2.29 “psig” shall mean pounds per square inch gauge. 

2.30 “Receipt Point(s)” shall mean the existing point(s) and new point(s) to be added by Supplier to Processor’s
Gathering Facilities where Processor installs meter(s) to accomplish the measurement of the Committed Gas. For purposes hereof, a Receipt Point will be defined as a wellhead as designated by Supplier, and mutually agreed to by the Parties in
writing, now or hereafter located upon the leases or lands within the Committed Areas. Unless otherwise agreed between the Parties, each well connected to Processor’s Gathering Facilities shall have its own separate and distinct metering
facility at the wellhead 

  
 6 

 2.31 “Residue Gas” and “Residue Gas Stream” shall mean that Gas from
the Plant Inlet Volume which remains after Shrinkage due to processing and Plant Fuel Gas requirements at the Plant or a third party processing plant. 

2.32 “Settlement Statement” shall have the meaning set forth in Section 5.4. 

2.33 “Shrinkage” shall mean the reduction in the volume and Btu content of the Plant Inlet Volume which occurs as a result of
the removal of Liquid Hydrocarbons contained therein as determined under Paragraph V of Exhibit A. 
 2.34 “Supplier” shall
have the meaning set forth in the Preamble. 
 Intentionally Deleted 

2.36 “T & F” shall have the meaning set forth in Section 7.1. 

2.37 “Well Connect Fee” shall have the meaning set forth in Section 1.3. 

ARTICLE III 

GATHERING AND PROCESSING OF COMMITTED GAS 

3.1 Quantity of Committed Gas to be delivered to the Receipt Point(s). Subject to the other terms and provisions hereof,
Supplier shall deliver, or cause to be delivered, to Processor at the Receipt Point(s), all Committed Gas now or hereafter produced by and/or under contract to Supplier from the Committed Area. Supplier’s obligation to deliver Committed Gas and
Processor’s obligation to receive such Committed Gas shall be subject to Processor receiving the Committed Gas tendered at the Receipt Point(s) pursuant to the terms of this Agreement. Additionally, in recognition of the desirability of
maintaining a uniform rate of flow of Gas for processing, Supplier agrees to use commercially reasonable efforts to cause production schedules to be regulated on a
day-by-day basis so that Committed Gas shall be made available at the Receipt Point(s) at as uniform a flow rate as possible. 

3.2 Line Pressure. Processor, at its sole cost and expense, shall install sufficient compression and/or line size to maintain an
initial maximum daily average line pressure of 50 psig at Processor’s metering facilities at each of the Receipt Point(s). The maximum daily line pressure will be 50 psig at each Receipt Point. If Processor fails to maintain a maximum daily
average line pressure of 50 psig due to Processor’s equipment, Gathering Facilities or compression unit for a period of thirty (30) days during any rolling sixty (60) day period, Processor, after consultation with Supplier, shall
release sufficient volumes to Supplier to allow the maximum daily average pressure to be brought back to 50 psig. Release of volumes shall be done on a well-by-well
basis; e.g., if excess volumes are estimated at 500 Mcfd, Processor will release an individual well or wells equaling such amount from this Agreement. If Processor’s failure to maintain a maximum daily average line pressure of 50 psig is due to
Supplier’s addition of a well or wells, Processor shall have a period of sixty (60) days from the date of initial production from said well(s) to bring the daily average line pressure down to the maximum of 50 psig, or at Supplier’s
option, Processor will release the gas from this Agreement until Processor has remedied the issue. 

  
 7 

 3.3 Processor’s Duty to Accept Delivery. Subject to the other terms and
provisions of this Agreement, commencing with the Initial Processing Date, Processor shall accept all of the Committed Gas delivered to the Receipt Point(s). If at any time or from time to time, Processor is unable to process or cause to be
processed all or any part of the Plant Inlet Volume for any reason provided in Article X, Processor, upon notice to Supplier, may reduce the receipt of the Plant Inlet Volume or bypass such Plant Inlet Volume around the Plant and deliver it to
the Delivery Point(s) without processing. Processor may elect to bypass a portion of the Plant Inlet Volume; however, in such case the resulting combined Residue Gas Stream shall meet the specifications of the pipeline receiving the Residue Gas.
Furthermore, unless otherwise agreed to by the Parties, such reduction or bypassing of Plant Inlet Volume may be done only in proportion that the Gas of other suppliers is so reduced or bypassed per contractual obligations with such other suppliers.

 ARTICLE IV 

PROCESSING AND RESIDUE GAS 

4.1 Processing of Products. Processor shall process or cause others to process the Plant Inlet Volume, except for the Gas which
bypasses processing under Paragraph 3.3 above. Such processing shall separate Liquid Hydrocarbons Products from the Plant Inlet Volume including, but not limited to, ethane, propane, butane and natural gasoline. The portion of the Liquid
Hydrocarbons which shall be allocable to the Plant Inlet Volume shall be determined in accordance with Article IV of the Accounting Procedure attached as Exhibit A to this Agreement. 

4.2 Commingled Residue Stream. Supplier hereby expressly acknowledges that the Plant Inlet Volume will be commingled with other
Gas delivered to Processor by third parties so that a commingled Residue Gas stream (the “Commingled Residue Gas”) will remain after the processing of the Plant Inlet Volume and third party Gas delivered for processing. Processor or the
operator of the third party plant shall obtain its Plant Fuel Gas from the Commingled Residue Gas and Supplier hereby authorizes such use. The Supplier’s share of the Commingled Residue Gas shall be determined in accordance with
Section 5.2 hereof and Article VI of the Accounting Procedure attached as Exhibit A to this Agreement. 
 4.3 Responsibilities of
Processor in the Operations of the Plant and Gathering Facilities. Processor shall operate its Plant and Processor’s Gathering Facilities in material compliance with local, state and federal laws, rules and regulations; provided,
however, that Processor shall not be liable to Supplier hereunder except for Processor’s gross negligence or willful misconduct. Processor shall provide all maintenance, repair work, materials, supplies, electrical power, technical supervision
and operating personnel required to operate Gathering Facilities. 

  
 8 

 ARTICLE V 

COMPENSATION 

5.1 Liquid Hydrocarbon Compensation. Processor shall purchase the Liquid Hydrocarbons included in the Plant Inlet Volume by
paying to Supplier 95% of proceeds received by Processor pursuant to Section 7.1 for the fixed NGL Recovery percentages set forth below. 

The fixed NGL recoveries for settlement purposes will be as follows: 

 

					
	 Ethane
	  	 	50	% 
	 Propane
	  	 	90	% 
	 Butanes
	  	 	93	% 
	 Natural gasoline
	  	 	95	% 

 5.2 Residue Gas Compensation. Processor shall purchase all Residue Gas included in the Plant
Inlet Volume after subtracting the Plant Fuel Gas (calculated as a percentage of the entire Plant Inlet Volume) by paying to Supplier 95% of the proceeds received by Processor for such Gas as set forth in Section 7.2. For purpose of clarity it
is understood that the entire Plant Fuel Gas amount including any amounts that might be attributable to the Liquid Hydrocarbons shall be deducted from just the Residue Gas. 

5.3 Gathering Fee. Supplier shall pay Processor an additional gathering fee of $.32 per MMBtu based on the amount of the
Committed Gas at the Receipt Point. Such fee will be upwardly adjusted annually beginning January 1, 2014 to reflect one-half of the 2013 adjustment, and on a calendar year basis thereafter in accordance with
the Consumer Price Index Urban (CPI-U.) 
 5.4 Settlement Statement Payment. Processor
shall provide to Supplier a statement setting forth the calculation of the Settlement Amount (the “Settlement Statement”) in sufficient detail and with all supporting data as reasonably required by Supplier to verify such Settlement
Amount. Processor shall transmit the Settlement Statement to Supplier by the last calendar day of each month with respect to the Gas gathered and processed hereunder during the preceding month. Processor shall net the amount due Processor against
the amount due Supplier and shall pay, or invoice as a result of such netting, the Settlement Amount indicated on the Settlement Statement not later than the fourth calendar day of the second month following the month in which deliveries were made.
All payments made hereunder whether from Processor or Supplier shall be made by electronic funds transfer or ACH. 
 ARTICLE VI 

QUALITY OF COMMITTED GAS 

6.1 No Removal of Liquid Hydrocarbons. Supplier agrees that it shall not deliver to the Receipt Point(s) any Committed Gas which
has had Liquid Hydrocarbons removed except for any Liquid Hydrocarbons which may be recovered incidental to the removal of free water from the Gas by conventional mechanical field separators upstream of the Receipt Point(s), which Liquid
Hydrocarbons shall remain the property of Supplier. Any Liquid Hydrocarbons, drip, condensate or scrubber oil collected in the Gathering Facilities or Plant by Processor shall remain the property of Processor. 

  
 9 

 6.2 Quality of Committed Gas and Residue Gas. Committed Gas delivered to the
Receipt Point(s) under this Agreement shall meet the quality specifications set forth in Exhibit B attached hereto and by this reference made a part hereof. If any of the Committed Gas shall fail to meet the quality specifications set forth in
Exhibit B, Processor shall have the right, at its option, to either: (a) accept and process or cause to be processed such Gas, or (b) refuse to accept deliveries of such Gas for processing (even though Processor may accept such deliveries
for transportation). Similarly, the Residue Gas, upon leaving the Plant, shall meet the quality specifications set forth in Exhibit B. If the Residue Gas at the Delivery Point(s) shall fail to meet the Gross Heating Value specifications set forth in
Exhibit B, Processor may take whatever steps are required to enable the Residue Gas to meet such specifications including, but not limited to, reducing the recovery of Liquid Hydrocarbon Products, and Processor will notify Supplier within 48 hours
of what steps have been taken to meet such specifications. In the event that Processor, in its commercially reasonable judgment, deems that the Gas requires dehydration, Processor will provide dehydration. 

In the event that Supplier’s Gas does not meet the downstream pipeline tariff requirements and is refused by the downstream pipeline, Processor shall not
install equipment or charge Supplier for additional treating without Supplier’s prior written consent. 
 ARTICLEVll 

PRICE OF LIQUID HYDROCARBONS AND RESIDUE GAS FOR SETTLEMENT 

7.1 Price of Liquid Hydrocarbons for Settlement. The sales prices of the Liquid Hydrocarbon Products shall be the arithmetic
mean of the daily average trading range high and low prices quoted by the Oil Price Information Service (“OPIS”) for the Conway, Kansas, Group 140 Hub, during the Accounting Period, less T&F (as defined below). In the event OPIS should
discontinue publishing this pricing information, a comparable successor publication shall be used. At such time that Processor converts transportation of such Liquid Hydrocarbons to Mt. Belvieu, the quoted prices will be based upon the OPIS Mt.
Belvieu, TX-non-TET (E/P Mix) “T&F” shall mean the actual third party transportation and fractionation charges, and marketing charges at and downstream
of the Plant attributable to such Liquid Hydrocarbon Products. 
 7.2 Price of Residue Gas for Settlement. The sales
price per MMBtu of the Residue Gas shall be the weighted average sales price received by Processor for all Residue Gas in a given accounting period at the Plant(s) to which Supplier’s gas is delivered. 

ARTICLE VIII 

TERM 
 8.1
Term. The Original Agreement as Amended shall continue in full force until the Effective Date. This Agreement shall become effective as of the Effective Date and shall remain in full force and effect until November 1, 2017 (the
“Primary Term”) and thereafter, this Agreement shall continue in full force and effect for successive periods of one (1) year each until terminated by either Party upon the giving of written notice at least forty-five (45) days
prior to the end of the Primary Term or any successive one year term. This Agreement shall be deemed an obligation that runs with the land and shall be binding upon any and all subsequent transferees

  
 10 

 
of the Supplier’s interests hereunder. Supplier agrees that Processor may file a mutually agreed to form of memorandum in the applicable land records acknowledging this Agreement The
provisions of Section 1.3 will survive the termination of this Agreement. Supplier will remain responsible for all charges incurred by it while this Agreement was in effect. 

8.2 Termination or Suspension Because of Uneconomical Operations. If at any time the Gas volumes or Liquid Hydrocarbons content
of the Committed Gas or any other cause shall render the processing of the Plant Inlet Volume, or the operation of a Plant uneconomic in the sole discretion of Processor (or Processor’s processor), Processor may (a) terminate this
Agreement on thirty (30) days prior written notice to Supplier, or (b) temporarily suspend operation of this Agreement for increments of one calendar month upon giving five (5) days prior written notice to Supplier before the end of
the calendar month which precedes the calendar month that the suspension will begin and such suspension shall remain in effect until the last day of the calendar month in which such uneconomical situation no longer exists (as determined in
Processor’s sole discretion); provided, however, that if such suspension extends for three (3) consecutive calendar months or more, Supplier shall have the right, in Supplier’s sole discretion, to terminate this Agreement upon thirty
(30) days written notice. In the event Processor elects to so suspend operation of this Agreement, the Committed Gas shall be released during the period of suspension. Processor may resume processing the Committed Gas on the first day of any
calendar month, provided that Processor has provided Supplier with 30 days prior written notice of the end of the suspension. If at any time the volume or Liquid Hydrocarbons content of the Gas or any other cause shall render the operation of a
Plant to be uneconomical, in the commercially reasonable discretion of Processor, Processor may either temporarily or permanently cease operations at such Plant, or process the Gas at a third party plant or plants. In the event of suspension due to
uneconomical operations the Parties will negotiate in good faith for the transportation of Supplier’s gas to a market outlet. 

ARTICLE IX 

REPRESENTATIONS AND WARRANTIES 

9.1 Representation and Warranties of Supplier. Supplier represents and warrants that: 

(a) it has title to all of the Liquid Hydrocarbons contained in the Committed Gas delivered hereunder (to the extent Supplier
owns or controls such Liquid Hydrocarbons), that it has good right to convey and does hereby convey to Processor, free from all liens and adverse claims, Processor’s share of all Liquid Hydrocarbon Products and Residue Gas, all Plant Fuel Gas
and all Shrinkage and title thereto, applicable to the Committed Gas, any and all line and incidental losses between the Receipt Point(s) and the Delivery Point(s) and that it has the right to deliver all Committed Gas during the term of this
Agreement; 
 (b) all royalties, taxes, license fees or other charges on the Committed Gas and Residue Gas available for
delivery at the Delivery Point(s), and Liquid Hydrocarbon Products have been or shall be paid when due; 

  
 11 

 (c) it has the right to deliver the Committed Gas to the Receipt Point(s) as
provided in this Agreement and that it will not transfer or assign any of the interests it has in the leases or land in the Committed Area to any third party without obtaining the agreement of such third party to be bound by the terms of this
Agreement, as such may be amended from time to time by agreement of the Parties; 
 (d) it has all requisite authority to
enter into this Agreement and to perform its obligations under this Agreement, that this Agreement shall not violate, nor be in conflict with, any provision of its charter or by-laws, and that the execution,
delivery, and performance of this Agreement have been duly and validly authorized by all requisite corporate action on its part; and 

(e) this Agreement has been duly executed and delivered by Supplier, constitutes a valid and binding obligation of Supplier,
and no consent or approval of any third party or other person or entity is necessary with respect to such execution and delivery, or to make this Agreement fully effective and binding upon Supplier. 

9.2 Representations and Warranties of Processor. Processor represents and warrants that: 

(a) it has all requisite company authority to enter into this Agreement and to perform its obligations under this Agreement,
that this Agreement shall not violate, nor be in conflict with, any provision of its charter or by-laws, and that the execution, delivery and performance of this Agreement has been duly and validly, authorized
by all requisite corporate action on its part; and 
 (b) this Agreement has been duly executed and delivered by Processor,
constitutes a valid and binding obligation of Processor, and no consent or approval of any third party or other person or entity is necessary with respect to such execution and delivery, or to make this Agreement fully effective and binding upon
Processor. 
 9.3 Indemnification. Each Party shall indemnify (the “Indemnifying Party”) and hold the other Party
harmless from all suits, actions, debts, accounts, damages, costs, losses, and expenses (including reasonable attorneys’ fees) arising from, or out of any misrepresentations made by the Indemnifying Party contained in Paragraphs 9.1 or 9.2 of
this Agreement, as applicable, or the breach of any warranty given in Paragraphs 9.1 or 9.2 of this Agreement, as applicable. The Party seeking indemnification shall promptly notify the Indemnifying Party of any such suits, actions, debts, accounts,
damages, costs, losses or expenses for which this indemnity shall apply. 
 ARTICLE X 

FORCE MAJEURE 

10.1 Force Majeure. In the event either Party is rendered unable, in whole or in part, by reason of Force Majeure to carry out
its obligations under this Agreement (other than the obligation to make payment of amounts due hereunder), it is agreed that such Party shall give notice and reasonably full particulars of such Force Majeure, in writing or by electronic media,

  
 12 

 
to the other Party within a reasonable time after the occurrence of the cause relied on, and the obligations of the Party giving such notice, so far as they are affected by such Force Majeure,
shall be suspended during the period of any inability so caused, but for no longer period, and such cause shall, as far as possible, be remedied using commercially reasonable efforts. 

10.2 Definition of Force Majeure. The term “Force Majeure” as employed herein shall mean acts of God; strikes,
lockouts, or other industrial disturbances; conditions arising from a change in governmental laws, orders, rules, or regulations; acts of public enemy; wars; blockades; insurrections; riots; epidemics; landslides; lightning; earthquakes; fires;
storms; floods; washouts; arrests and restraints of governments and people; civil disturbances; explosions; breakage or accident to machinery or lines of pipe; the necessity for making repairs, tests or alterations to machinery or lines of pipe;
freezing of wells or lines of pipe; partial or entire failure of wells, processing, or gasification and gas manufacturing facilities; failure of transporter to accept delivery of Liquid Hydrocarbons or Residue Gas; and any other causes, whether of
the kind herein enumerated or otherwise, not within the control of the Party claiming suspension and which by the exercise of due diligence such Party is unable to prevent or overcome, including any claim of Force Majeure by any third party
processor. Such term shall likewise include (a) in those instances where either Party is required to obtain servitudes, rights-of-way, grants, permits or licenses
to enable such Party to fulfill its obligations under this Agreement, the inability of such Party to acquire or the delays on the part of such Party in acquiring, at reasonable costs, and after the exercise of reasonable diligence, such servitudes, rights-of-way, grants, permits, or licenses and (b) in those instances where either Party is required to furnish materials and supplies for the purpose of constructing or
maintaining facilities or is required to secure permits or permissions from any governmental agency to enable such Party to fulfill its obligations under this Agreement, the inability of such Party to acquire, or the delays on the part of such Party
in acquiring, at reasonable costs, and after the exercise of reasonable diligence, such material and supplies, permits and permissions. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of
the Party having the difficulty, and that the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to the demands of the opposing Party when such
course is inadvisable in the commercially reasonable discretion of the Party having the difficulty. 
 ARTICLE XI 

NOTICES 
 11.1
Notices. All notice, demands and other communications required or permitted under this Agreement shall be in writing, shall be properly addressed to the appropriate Party named below, shall be delivered at the expense of the Party giving
notice and shall be deemed to have been delivered when personally delivered to the individual indicated below, or if sent by mail three business days after being sent to the Party charged with such notice: 

 

			
	 IF TO PROCESSOR
	  	 IF TO SUPPLIER

		
	 SemGas, L.P.
	  	 ARP Oklahoma, LLC

	 6120 S. Yale Ave., Suite 700
	  	 Park Place Corp Center One

  
 13 

			
	 Tulsa, OK 74136
	  	1000 Commerce Drive, Suite 400
	 Attn: Commercial Manager
	  	Pittsburgh, PA 15275
	 Phone: 316.315.0204
	  	
	 Fax: 316.315.0244
	  	
	 Or
	  	
	 Attn: Contract Administration
	  	Attn: Energy Marketing
	 Phone: 918.524.8110
	  	Phone: 412.489.0309
	 Fax:     918.524.8210
	  	Fax:     412.774.2431

 Notwithstanding the above, the Parties may agree to use email, facsimiles or Electronic Data Interchange (EDI) for notices,
requests, demands, statements, or bills provided for herein. In such event, they shall be deemed delivered when sent to the Party charged with such notice. Any Party shall change its address by appropriate written notice to the other Party hereto.

 ARTICLE XII 

GENERAL PROVISIONS 

12.1 Compliance with Laws. This Agreement and all operations to be conducted hereunder and in connection herewith are and shall
be subject to all applicable laws, rules, orders and regulations now or hereafter promulgated by governmental agencies or bodies, State or Federal, having any jurisdiction over the gathering, transportation, processing and handling of the Committed
Gas or of any operation conducted or to be conducted hereunder. 
 12.2 Taxes. Processor or its representative shall, from the
proceeds otherwise owing to Supplier hereunder, timely remit any present, new or increased production, severance, or other taxes or assessments of a similar nature, imposed or levied by the state or any other governmental or duly constituted
authority having jurisdiction upon the Committed Gas. 
 12.3 Revenue Distribution. Processor shall process the required
division orders based on title opinions provided by Supplier and shall make basic revenue distribution of the proceeds owing hereunder to Supplier and other relevant entities defined by Supplier in the title opinions. Supplier shall be solely
responsible for providing accurate title information to Processor, and Processor shall be able to rely on such information without liability regarding its accuracy. 

12.4 Relationship of Parties. Processor shall be regarded as an independent contractor free from any control or direction by
Supplier. Further, the rights and obligation of the Parties hereto shall be defined solely by the terms hereof and nothing herein shall be construed as creating a partnership of any kind, joint venture, association or trust, nor shall any Party be
considered the agent for the other Party for any purpose whatsoever. 
 12.5 Exclusion from Subchapter “K”. If, for
Federal income tax purposes, this Agreement and the operations hereunder are regarded as creating a partnership, each Party hereby affected elects to be excluded from the application of all of the provisions of Subchapter “K”, Chapter 1,
Subtitle A, of the Internal Revenue Code of 1986, as amended, as permitted and authorized by Section 761 of the Code and the regulations promulgated thereunder. Processor is 

  
 14 

 
authorized and directed to execute on behalf of Supplier such evidence of this election as may be required by the Secretary of the Treasury of the United States or the Federal Internal Revenue
Service, including all of the returns, statements and data required by Federal Regulations or other law or regulation. Should there be any requirement that each Party hereby affected give further evidence of this election, each Party shall execute
such documents and furnish such other evidence as may be required by the Federal Internal Revenue Service or as may be necessary to evidence this election. No such Party shall give any notices or take any other action inconsistent with the election
made hereby. The Parties shall make similar elections as may be permitted or required by state laws. 
 12.6 Operations by
Supplier. Supplier hereby expressly reserves the right to conduct its operations free from all control by Processor, in such a manner as Supplier, in its commercially reasonable discretion, deems advisable, subject to the terms of this
Agreement. 
 12.7 Exhibits. All exhibits referred to in this Agreement are hereby incorporated by reference. In the event of
a conflict between any of the exhibits referred to in this Agreement and this Agreement, the terms and provisions of this Agreement shall control. 

12.8 Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Parties respecting the
subject matter hereof, there being no oral agreements, promises or representations which are or may be incidental or supplementary to the provisions here. This Agreement was prepared jointly by the Parties and not by one Party to the exclusion of
the other Party. This Agreement may only be modified or altered by a document in writing and executed subsequent to the date hereof by the Parties. 

12.9 Waiver. The failure of either Party to this Agreement to insist upon the strict performance of any provision of this
Agreement or to exercise any right, power, or remedy upon a breach thereof, shall not constitute a waiver by said Party for any such provision, breach, or subsequent breach, whether of the same or of any other provision hereof. 

12.10 Governing Law. The Parties agree that the Agreement shall be governed by and construed in accordance with the laws of the
State of Oklahoma, excluding any conflicts of law, rule or principle that might refer such construction of the laws of another state and that venue shall be in either state or federal court sitting in Tulsa County, Oklahoma, with respect to any
cause of action brought under or with respect to this Agreement. 
 12.11 Assignment. The terms and conditions of this
Agreement shall be binding upon and shall accrue to the benefit of the Parties hereto and their successors and assigns. Neither Party may assign this Agreement without the prior written consent of the other Party, which consent shall not be
unreasonably withheld. Any assignment of any of the rights or obligations of either Party, in whole or in part, shall be made subject to the terms of this Agreement. Nothing in this Agreement shall prevent either Party from pledging or mortgaging
its rights hereunder as security for its indebtedness. A merger, recapitalization, or change of ownership or control of either corporate entity which is a Party hereto shall not be considered an assignment. 

12.12 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT EXCEPT FOR CIRCUMSTANCES
INVOLVING FRAUD BY A PARTY, NEITHER PARTY SHALL BE LIABLE OR 

  
 15 

 OTHERWISE RESPONSIBLE TO THE OTHER PARTY FOR PUNITIVE, SPECIAL, CONSEQUENTIAL, OR INCIDENTAL DAMAGES OR FOR
LOST PROFITS WHICH ARISE OUT OF OR RELATE TO THIS AGREEMENT. 
 12.13 Severability. The invalidity or unenforceability of
any article, paragraph, subparagraph, provision or term of this Agreement shall not affect any other article, paragraph, subparagraph, provision or term of this Agreement. 

12.14 Headings for Convenience. Headings used herein are for convenience only and do not constitute part of this Agreement. 

12.15 Binding Effect. The terms and conditions of this Agreement shall be binding upon and shall inure to the benefit of the
Parties hereto, and their respective successors and assigns. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written. 
  

					
	 Processor:
	  		 	Supplier:
			
	 SemGas, L.P.
	  		 	ARP Oklahoma, LLC
	 By: SemOperating G.P., L.L.C.,
General Partner
	  		 	
			
	 

	  		 	

	          
	  		 	          

	 Name: Norman J. Szydlowski
	  		 	Name: Matthew Jones
	 Title: Chief Executive Officer
	  		 	Title:

  
 16 

 EXHIBIT A 

Attached to and made a part of that certain Gas Purchase, Gathering and 

Processing Agreement effective August 1, 2013, by and between 

SemGas, L.P. and ARP Oklahoma, LLC 

ACCOUNTING PROCEDURE 
  

	I.	General Provisions 

 A. Gas Purchase. Gathering and Processing Agreement.
All reference to the Agreement shall mean the Gas Purchase, Gathering and Processing Agreement to which this Exhibit A is attached. 
 B.
Definitions. Terms used in this Exhibit A shall have the same meanings as defined in the Agreement. The following additional term shall have the meaning set forth below: 

“Btu/Gallon Liquid Ratio Factor” shall mean the number of Btu’s contained in 1 gallon of any component of the Liquid Hydrocarbon
Products measured at 60° Fahrenheit. The Gross Heating Value in Btu’s per gallon shall be the values stated as ideal Gas Law. The numerical values of such ratio for each component shall be the numerical values shown in the Gas Processors
Association Standard 2145-2000, as amended from time to time. 
 C. Standard Reporting. All volumes and Btu measurements shall be
reported at 14.73 psia and 60° Fahrenheit. For purpose of this Exhibit A, all references to volumes shall mean volumes in Mcf. 
 D. The
Liquid Hydrocarbons components of ethane, propane, iso-butane, normal butane and natural gasoline (sometimes known as Pentane plus (+) will be allocated to Supplier from the Liquid Hydrocarbon Products produced hereunder. For brevity purposes,
iso-butane and normal butane will both be referred to as just “butane” in this Exhibit A. 
  

	II.	Basis for Allocations 

 A. Sampling and Analysis of Inlet Streams and
Commingled Residue Gas. Processor shall determine the analysis of the Plant Inlet Volume by taking spot sample(s) at the Receipt Point(s) as frequently as deemed necessary, but not less frequently than once each three (3) months. Processor
shall provide Supplier at least seven (7) business days prior notice so that Supplier’s personnel can witness such sampling. Processor may, at its sole option, install, maintain, and operate a continuous gas sampler to sample the Gas at

  
 17 

 
the Receipt Point(s). Determination by a continuous gas sampler shall become effective the first day of the month in which the gas sample was collected. Spot sample determinations shall become
effective the first day of the month following the determination and shall remain effective until the next subsequent determination. Processor shall cause the Gas sample to be analyzed at a reputable third party commercial laboratory using a
chromatograph. The resulting component analyses shall indicate the gross heating value, saturated, at 14.73 psia and 60° Fahrenheit for each sample of the Gas at the Receipt Point(s) and it shall further indicate the gallons of ethane, propane,
butane and natural gasoline per thousand cubic feet (GPM) contained in such samples. 
 B. Calculation of Theoretical Gallons of Ethane,
Propane, Butane and Natural Gasoline. The Plant Inlet Volume during an Accounting Period shall be multiplied by the (GPM) of ethane, propane, butane, and natural gasoline contained therein (determined as provided in Paragraph II.A of this
Exhibit A) to determine the total theoretical gallons of ethane, propane, butane, and natural gasoline, respectively, contained in such volumes. In the event that any Gas is bypassed around the Plant without processing, all references to the Plant
Inlet Volume for purpose of calculating theoretical gallons of ethane, propane, butane and natural gasoline shall mean the calculated volume of Committed Gas at the Receipt Point(s) less the Field Fuel Gas and less any amounts of Gas that are
bypassed. 
 C. Calculation of Theoretical MMBtu’s in the Plant Inlet Volume. The Plant Inlet Volume during an Accounting Period
shall be multiplied by the Gross Heating Value of such Plant Inlet Volume, determined from the sampling and analysis as provided in Paragraph II.A of this Exhibit A to arrive at the total theoretical MMBtu’s contained in the Plant Inlet Volume.
In the event that any Gas is bypassed around the Plant without processing, all references to the Plant Inlet Volume for purpose of calculating theoretical MMBtu’s shall mean the volume of Committed Gas received and/or calculated at the Receipt
Point(s) less the Field Fuel Gas and less any amounts of Gas that are bypassed. 
  

	III.	Product Recovery Percentages for Receipt Points 

 The Product Recovery Percentage
of each Liquid Hydrocarbon Product used to determine the gross allocation of ethane, propane, butane and natural gasoline (as provided in Paragraph IV.A of this Exhibit A) from Plant Inlet Volume shall be as follows: 

 

					
	 Ethane
	  	 	50	% 
	 Propane
	  	 	90	% 
	 Iso-Butane
	  	 	93	% 
	 Normal Butane
	  	 	93	% 
	 Natural Gasoline
	  	 	95	% 

  
 18 

 IV. Determination of Ethane, Propane, Butane and Natural Gasoline 

A. Gross Allocation. The total theoretical gallons of ethane, propane, butane and natural gasoline contained in the Plant Inlet Volume
(determined as provided in Paragraph II.B of this Exhibit A) shall be multiplied by the Product Recovery Percentage provided above with respect to each product to determine the gross allocation of ethane, propane, butane and natural gasoline to the
Committed Gas. 
 B. Net Allocation. The net number of gallons of ethane, propane, butane and natural gasoline allocable to the Plant
Inlet Volume shall be determined by multiplying the percentage of to the Liquid Hydrocarbon Products Supplier is to receive (determined as provided in Section 5.1 of the Agreement) by the gross allocation of gallons of ethane, propane, butane
and natural gasoline to the Plant Inlet Volume (determined as provided in Paragraph IV.A of this Exhibit A). 
 V. Determination of Shrinkage

 A. MMBtu Content of the Ethane, Propane, Butane, and Natural Gasoline. The MMBtu’s removed from the Plant Inlet Volume as
separate Liquid Hydrocarbon Products (i.e., ethane, propane, butane and natural gasoline) during each Accounting Period shall be determined by multiplying the number of gallons of the ethane, propane, butane and natural gasoline, respectively,
produced during such Accounting Period from the Plant Inlet Volume, determined as provided in Paragraph IV.A of this Exhibit A, by the Btu/Gallon Liquid Ratio Factor (determined as provided in Paragraph I.B of this Exhibit A), as applicable for each
component, in effect for such Accounting Period. 
 B. Total MMBtu’s Removed from the Plant Inlet Volume. The total MMBtu’s
removed from the Plant Inlet Volume as Liquid Hydrocarbon Products during each Accounting Period shall equal the sum of the MMBtu’s removed from the Plant Inlet Volume as ethane, propane, butane and natural gasoline, determined as provided in
Paragraph V.A of this Exhibit A. 
  

	VI.	Determination of Residue Gas 

 A. Basis for Determination and Gross
Allocation. The theoretical MMBtu’s allocable to Supplier from the Commingled Residue Gas shall be determined by subtracting the sum of 1) the MMBtu’s removed from the Plant Inlet Volume as Liquid Hydrocarbon Products (determined as
provided Paragraph V of this Exhibit A) and 2) the MMBtu’s allocable to the Plant Inlet Volume as Plant Fuel Gas from the theoretical MMBtu’s delivered to the Receipt Points in the Committed Gas (determined as provided in Paragraph II.C of
this Exhibit A) during the Accounting Period. 
 B. Net Allocation. The net Commingled Residue Gas allocable to the Plant Inlet Volume
shall be determined by multiplying the percentage of MMBtu’s of Residue Gas Supplier is to receive (determined as provided in Section 5 of the Agreement) by the gross allocation of MMBtu’s allocable to the Plant Inlet
Volume(determined as provided in Paragraph VI.A of this Exhibit A. 

  
 19 

	VII.	Audit Rights  

 A. Examination of Books. Records and Charts. Each Party
shall have the right during reasonable working hours to examine the books, records and charts of the other Party to the extent necessary to verify the accuracy of any statement, payment calculations or determinations made pursuant to the provisions
contained herein. The accuracy of any statement, payment calculation or determination made pursuant to the provisions contained herein shall be conclusively presumed to be correct twenty-four (24) months after the charts and records were
generated or prepared if not challenged in writing prior thereto. If any such examination shall reveal, or if either Party shall discover, any error in its own or the other Parts statements, payment calculations or determinations, then proper
adjustment and correction thereof shall be made as promptly as practicable thereafter. 

  
 20 

 EXHIBIT B 

Attached to and made a part of that certain Gas Purchase, Gathering and 

Processing Agreement effective August 1, 2013, by and between 

SemGas, L.P. and ARP Oklahoma, LLC 
 GAS
QUALITY AND GAS MEASUREMENT 
 The commingled stream of Committed Gas delivered to Processor’s Gathering Facilities shall: 

A. Be measured at a pressure base of fourteen and seventy-three hundredths (14.73) pounds per square inch and at a temperature of sixty degrees
(60°) Fahrenheit. The Committed Gas may be saturated with water vapor, but shall not contain any free water. 
 B. Not contain more
than four parts per million of hydrogen sulfide as determined by quantitative methods in general use in the industry and mutually acceptable to both Parties. 

C. Not contain any diluents, impurities, non-hydrocarbon components or other substances which would
render the gas incapable of meeting the quality specifications of the Downstream Pipeline(s) receiving Residue Gas at the Delivery Point(s) at each Plant. 

D. Not contain in excess of six (6) percent nitrogen. 

E. Not contain less than 1,000 Btu per cubic foot. In the event that the Gross Heating Value of the Committed Gas falls below 1,000 Btu per
cubic foot, Processor shall have the option to refuse to accept Committed Gas so long as the Gross Heating Value remains below 1,000 Btu per cubic foot (even though Processor or its designee may accept such deliveries for gathering and/or
transportation). 
 F. Meet the above specifications, and be commercially free from dust, gum,
gum-forming constituents, or other liquid or solid matter which might become separated from the Committed Gas in the course of gathering and/or transportation through Processor’s or its designee’s
system. 
 G. Have a maximum temperature of one hundred twenty degrees Fahrenheit (120°F) and a minimum temperature of forty degrees
Fahrenheit (40°F). 
 H. Not contain in excess of two (2%) percent of carbon dioxide (by volume). 

I. Not contain in excess of 50 parts per million of oxygen. 

The Residue Gas delivered to the Delivery Point(s) shall meet the specifications designated by the applicable third party processor or transporter. Supplier
and Processor agree that in the event 

  
 21 

 
such processor or transporter refuses to accept Residue Gas because it does not meet applicable specifications, Processor will make a commercially reasonable effort to process any such Residue
Gas at Processor’s Plant or at a third party processing plant, on the terms and conditions of Processor’s contract with the relevant processor or transporter. 

MEASURING EQUIPMENT AND TESTING 

A. Installation and Operation. Processor or its designee shall construct, own, operate, and maintain, all measuring facilities necessary
to accomplish the receipt of Committed Gas Processor for the account of Supplier at the Receipt Point(s) herein. Each Party shall, at all reasonable times, have access to the premises of the other for inspections, insofar as such premises are
connected with any matter or thing covered hereby. The operation of measuring equipment, changing of charts and/or obtaining electronic data shall be done only by the employees or agents of Processor or its designee at the Receipt Point(s). 

B. Testing and Repair of Equipment. 

1. Processor and Supplier shall each maintain their own measuring equipment to be accurate and in good repair, making such
periodic tests as necessary to verify the condition of meter tubes, orifice plate, and the flow recorder or flow computer. Both Parties agree to give each other seven (7) business days notice prior to such tests of the measuring equipment so
that if desired, either Party may have its representative present. Either Party shall have the right to challenge the accuracy of the other Party’s equipment, and when challenged, the equipment shall be tested, calibrated and, if required,
repaired by the challenged Party; the cost of such special test to be borne by the challenged Party if the percentage of the total metering inaccuracy is found to be more than two percent (2%), but if the percentage of the total metering inaccuracy
is found to be two percent (2%) or less, the cost of such special test shall be borne by the challenging Party. If upon any test, the percentage of the total metering inaccuracy is found to be in excess of two percent (2% ), registrations therefore
shall be corrected for a period extending back to the time such inaccuracy occurred if such time is ascertainable, and if not ascertainable, then back one-half (1/2) of the time elapsed since the last date of
calibration, but not to exceed 90 days. Any measuring equipment determined to be measuring inaccurately in any percentage shall be adjusted at once to read accurately. 

2. If, for any reason, the meter(s) are out of service or out of repair so that the amount of Committed Gas received cannot be
ascertained or computed from the readings thereof, the Committed Gas received during the period such meter(s) are out of service or out of repair shall be estimated and agreed upon by the Parties hereto by the use of the first applicable of the
following methods: 
 a. By comparative utilization of any like check measuring equipment installed by Supplier or Supplier’s Designee
if such check measuring equipment can be proven and verified to be measuring accurately subject to the check meter provisions in Paragraph E of this Section, or 

  
 22 

 b. By computing the error if the percentage of error is ascertainable by calibration test or
mathematical calculations, or 
 c. By estimating the quantity of Committed Gas received by reference to actual receipts of Committed Gas
during preceding periods under similar conditions when Processors measuring equipment was registering accurately. 
 C. Inspection of
Charts and Records. The charts and records from the measuring equipment shall remain the property of Processor and shall be kept on file for a period of time not less than twenty-four (24) months after the charts and records were generated
or prepared. At any time within such period, upon written request by Supplier, records and/or charts from the measuring equipment, together with calculations there from, will be submitted for Supplier’s inspection and verification, subject to
return to Processor within thirty (30) days from receipt thereof. Supplier or Supplier’s Designee shall retain its charts and records for the same period of time as Processor’s obligation under this Paragraph. 

D. Telemetering. Processor and Supplier shall each have the right, but not the obligation, to install and operate telemetering equipment
it deems necessary to carry out Supervisory Control and Data Acquisition (SCADA) or other operational needs at any Receipt Point(s) contemplated hereunder, provided Processor’s normal operations are not materially impeded. 

E. Check Meter. Supplier or Supplier’s Designee shall have the right to install, maintain as described in Paragraph A of this
section, and operate such check measurement equipment as it may desire, but same shall not materially interfere with or impede in any way the operation of Processor’s measurement or other equipment hereunder, and all calibrating and adjusting
of check meters and changing of charts shall be done by Supplier or its designees. Such check meters may be installed at the Receipt Point(s) only. Furthermore, Processor must be notified seven (7) calendar days prior to all testing and
calibration in order to have a representative present. In the event Processor proves the inaccuracy of Supplier’s check meter or all applicable check meter maintenance records are not available, both Parties agree to incorporate the next
applicable alternate method detailed in Paragraph B.2 of this Section to resolve the discrepancy. 

  
 23 

 EXHIBIT C 

Attached to and made a part of that certain Gas Purchase, Gathering and 

Processing Agreement effective August 1, 2013, by and between 

SemGas, L.P. and ARP Oklahoma, LLC 

DESCRIPTION OF GAS PROCESSING PLANT(S) 
 Nash
cryogenic plant located in Section 28, T25N, R8W in Grant County, Oklahoma 
 Hopeton cryogenic plant located in Section 31, T26N, R13W in Woods
County, Oklahoma 
 Rose Valley I and II plants located in Section 6, T25N, R14W in Woods County, Oklahoma 

  
 24 

 EXHIBIT D 

Attached to and made a part of that certain Gas Purchase, Gathering and 

Processing Agreement effective August 1, 2013, by and between 

SemGas, L.P. and ARP Oklahoma, LLC 

DESCRIPTION OF COMMITTED GAS 
 Subject to Paragraph
1.1 and 3.3 of this Agreement, Supplier’s share of all Gas now or hereafter produced from all leases either currently owned or acquired during the term of this Agreement located in the following townships and ranges in Oklahoma: 

 

					
	 Township
	 	 Range
	 	 County

	23N	 	7W, 8W	 	Garfield
	23N	 	9W	 	Garfield, Major
	24N	 	7W, 8W	 	Garfield
	25N	 	7W, 8W	 	Grant
	24N	 	9W, 10W, 11W, 12W	 	Alfalfa
	25N	 	9W, 10W, 11W, 12W	 	Alfalfa
	26N	 	9W, 10W, 11W, 12W	 	Alfalfa
	24N	 	13W, 14W, 15W	 	Woods
	25N	 	13W, 14W, 15W	 	Woods
	26N	 	13W, 14W, 15W	 	Woods
	27N	 	14W, 15W	 	Woods

  
 25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]