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NOTE: This model footage contract is a suggested guide only and the use of this form or any variation thereof shall be at the sole discretion and risk of the user parties. Users of the model footage contract or any portion or variation thereof are encouraged to seek the advice of counsel to ensure that their contract reflects the complete agreement of the parties and applicable law. TheDirectional Crossing Contractors Association disclaims any liability whatsoever for loss or damages that may result from use of the form contract or portions or variations thereof. Revised October 2000

DIRECTIONAL CROSSING CONTRACTORS ASSOCIATION

DIRECTIONAL DRILLING BID PROPOSAL AND DIRECTIONAL DRILLING MODEL FOOTAGE CONTRACT

TO:

__________________________________________________________________ _________________________________

This directional drilling model footage contract form contains our bid for the performance of the work outlined below on the terms and conditions and for the consideration set forth. If this bid is accepted by ____________________________________________________________

__ and mailed or delivered to us not later than _____ p.m. on the _______ dayof _________________, _____, this instrument will constitute a contract between us. THIS AGREEMENT CONTAINS PROVISIONS RELATING TO INDEMNITY RELEASE OF LIABILITY AND ALLOCATION OF RISK. THIS AGREEMENT (the “Contract”) is made and entered into on the date hereinafter set forth by and between the parties herein designated as “Owner/Contractor” a nd “Drilling Contractor” OWNER/CONTRACTOR: Address:DRILLING CONTRACTOR: Address:

IN CONSIDERATION of the mutual promises, conditions, and agreements contained herein and the specifications and special provisions set forth in Exhibits “A”, “B” and “C” attached hereto and made a part hereof, Owner/Contractor engages Drilling Contractor as an Independent Contractor to construct one or more Directionally Drilled Crossings. A DirectionallyDrilled Crossing shall mean the drilling of a pilot hole, by means of horizontal directional drilling, enlarging the pilot hole to a diameter suitable for the installation of the product pipe and pulling the product pipe into the enlarged hole. For the purposes hereof, the term “footage basis” means Drilling Contractor shall furnish the equipment, labor, and perform the services as herein provided toinstall the product pipe specified by the Owner/Contractor. Subject to the terms and conditions hereof, payment to the Drilling Contractor at the stipulated price per foot of pilot hole drilled is earned upon the installation of the product pipe specified by the Owner/Contractor. While drilling on a footage basis, Drilling Contractor shall direct, supervise and control drilling operations andassumes certain liabilities to the extent specifically provided for herein. Notwithstanding that this is a footage basis contract, Drilling Contractor and Owner/Contractor recognize that certain portions of the operations, as hereinafter designated, will be performed on a daywork basis.

Directional Drilling Footage Contract – Page 1

For the purposes hereof, “daywork basis” means DrillingContractor shall furnish equipment, labor and perform the services herein provided for a specified sum per day. When operating on a daywork basis, Drilling Contractor shall be paid at the applicable rates of payment and assumes only the obligations and liabilities stated herein as being applicable during daywork operations. Except for such obligations and liabilities specifically assumed byDrilling Contractor, Owner/Contractor shall be solely responsible and assumes liability for all consequences of operations by both parties while on a daywork basis, including results and all other risks or liabilities incurred in or incident to such operations. 1. Description of Project and Directionally Drilled Crossings: Owner: Project City County State _________________________________________...