SERVICE AND WATER DISPOSAL AGREEMENT
This Service and Water Disposal Agreement is effective as of November
15, 2002 by and between Petrol Oil and Gas Inc, a Nevada Corporation
("POGI"), and B&B Cooperative Venture, ("B&B") and Birk Petroleum ("Birk").
Recitals
WHEREAS, Birk is the Owner/Operator of the Wilson SWD well located in
the Hatch Field, SE 1/4 of S 23 T 21 R13E of Coffey County, Kansas Docket #
D-24630 ("Disposal Well"), and
WHERAS, Birk has been granted all rights and authority by the landowner,
mineral lease owner, City, County, State and Federal Authorities and
Regulators to inject and dispose of brine waters into said Disposal Well, and
WHEREAS, B&B and Birk and their employees have the knowledge and
understanding involved in the injection of fluids into the Disposal Well in a
safe and environmentally sound manner, and
WHEREAS, Birk is licensed and operates as part of its general operations
water well hauling, and
WHEREAS, B&B operates a well serving operation capable of monitoring and
assessing the integrity and operation of producing and shut in oil and gas
wells ("Pumping Service"),
WHEREAS, POGI is engaged in the drilling and completion of its wells in
Coffey and other Counties in Kansas, and
WHEREAS, POGI is also engaged in the business of producing gas and/or
oil from its wells and monitoring the production process, and
WHEREAS, POGI will at times produce water ("Produced Water") from its
wells and storage Produced Water in tanks on POGI leases, and
WHEREAS, POGI is desirous to have B&B provide Pumping Services on its
existing wells to monitor operations, and assess and report on the
disposition of the production process, and
WHEREAS, POGI desires to have Birk transport Produced Water from POGI
lease tanks to the Disposal Well where Birk will inject Produced Water into
the Disposal Well,
NOW THEREFORE, in consideration of the above recitals and the mutual
promises and conditions in this Agreement, and other good and valuable
considerations, the receipt and sufficiency of which is hereby acknowledged,
the parties agree as follows:
1. PUMPING SERVICES. B&B shall provide Pumping Service on POGI wells as
instructed by POGI.
1.1. B&B Pumping Services: B&B will check and monitor the wells, tank
batteries and associated well equipment that are necessary to maintain the
wells in an operational manner. B&B will provide a daily report describing
the activities and operational status of the POGI wells. The daily report
will be transmitted to POGI via e-mail or FAX.
1.2. POGI will pay B&B $10.00 (Ten dollars) per day for each well B&B
provides Pumping Service. POGI will pay B&B on a monthly basis in the amount
of $300.00 (Three Hundred dollars) per well.
2. WATER HAULING AND DISPOSAL. Birk will provide water hauling of POGI
Produced Water and Birk will dispose of those Produced Water in the Disposal
Well.
2.1. Birk will unload Produced Water from POGI water tanks and transport
the Produced Water to the Disposal Well.
2.2. Birk will subsequently dispose of the Produced Water in the
Disposal Well.
2.3. POGI agrees to pay Birk at the rate of $60.00 (Sixty dollars) per
hour for water hauling.
2.4. POGI agrees to pay $250.00 (Two Hundred Fifty) per month for use of
the Disposal Well. POGI will pay Birk 3 (Three) months in advance for the use
of this disposal well.
3. TERM OF AGREEMENT. The term of this agreement shall be for 1 (One) year
beginning on the date first written above, and ending November 15, 2003.
3.1 Use of the Disposal Well will be terminated if Birk is not used
for hauling water from the existing POGI wells.
4. CONFIDENTIAL INFORMATION:
4.1 Nondisclosure. Without the prior written consent of POGI, B&B and/or
Birk shall not, at any time, either during or after the term of this
Agreement, directly or indirectly, divulge or disclose to any
person, firm, association, or corporation, any plans, data, results
of tests and data, or any other trade secrets or confidential
materials or like information (collectively referred to as the
"Confidential Information") of POGI, it being the intent of POGI,
with which intent B&B and Birk hereby agrees, to restrict B&B and
Birk from disseminating or using any like information that is
unpublished or not readily available to the general public.
5. MISCELLANEOUS:
5.1 Time of the Essence. Time is of the essence of this Agreement, and
each provision hereof.
5.2 Governing Law. The formation, construction, and performance of this
Agreement shall be construed in accordance with the laws of Kansas.
5.3 Notice. Any notice, request, demand or other communication required
or permitted hereunder or required by law shall be in writing and
shall be effective upon delivery of the same in person to the
intended addressee, or upon deposit of the same with an overnight
courier service (such as Federal Express) for delivery to the
intended addressee at its address shown herein, or upon deposit of
the same in the United States mail, postage prepaid, certified or
registered mail, return receipt requested, sent to the intended
addressee at its address shown herein. The address of any party to
this Agreement may be changed by written notice of such other
address given in accordance herewith and actually received by the
other parties at least ten (10) days in advance of the date upon
which such change of address shall be effective.
POGI Address B&B Address
Petrol Oil and Gas Inc. B&B Cooperative Ventures
Attn: Paul Branagan 874 12th Rd.
6265 S. Stevenson Way Burlington, KS 66839
Las Vegas, NV 89120 620 364 5875
702 451 7324
IN WITNESS WHEREOF, the parties have entered into this Agreement on the
date first above written.
POGI:
DATE:__________________ By:/s/ Paul Branagan
November 15th, 2002 Paul Branagan
B&B:
DATE:___________________ By:/s/ Edward E Birk
November 15th, 2002 Edward E Birk , Director
B&B:
DATE:___________________ By:/s/ Brian Birk
November 15th, 2002 Brian Birk , Director