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(1 ) LLNL anticipates that drilling operations would take <br /> approximately two weeks at each well location. LLNL is aware of the <br /> fact that the Parcel is being used for grazing and has been proposed for <br /> limited improvements. LLNL is fully cognizant of the potential <br /> inference inherent between such uses and the work described above. LLNL <br /> agrees to minimize its presence on the Parcel as much as practicable. <br /> LLNL shall also submit a proposed drilling schedule and future <br /> monitoring schedule to the Owner. Time is of the essence. <br /> (2) LLNL convenants that it shall defend, indemnify and hold Owner <br /> harmless from and against any and all liability, loss, expense, <br /> attorneys ' fees, or claims for injury or damages arising out of the <br /> terms of this Agreement but only in proportion to and to the extent such <br /> liability, loss, expense, attorneys ' fees, or claims for injury or <br /> damages are caused by or result from the negligent or intentional acts <br /> or omissions of LLNL, its officers, agents, employees, or authorized <br /> contractors and subcontractors. The foregoing hold harmless agreement <br /> is limited with respect to LLNL to the insurance coverage it holds with <br /> the Insurance Company of North America in the policy amount of Three <br /> Hundred Thousand Dollars ($300,000.00). LLNL's authorized consulting <br /> subcontractors conducting work on the Owner' s Parcel must also as a <br /> condition of work maintain liability coverage. <br /> (3) Locations of the two monitor wells will be as determined <br /> following an inspection of the Parcel by LLNL representatives and as <br /> approved by Owner. Construction of the wells will be in accordance with <br /> relevant San Joaquin County Local Health District regulations and <br /> standards. LLNL will apply for and satisfy all permit requirements. <br /> - 2 - <br />