IPI Intrepid Potash Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

 

Date of Report: December 12, 2023

(Date of earliest event reported)

 

Intrepid Potash, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		001-34025		26-1501877
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

707 17th Street, Suite 4200

Denver, Colorado 80202

(Address of principal executive offices and zip code)

 

(303) 296-3006

(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading symbol		Name of each exchange on which registered
Common Stock, par value $0.001 per share		IPI		New York Stock Exchange

 

Indicate by checkmark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 1.01

Entry into a Material Definitive Agreement.

 

On December 12, 2023, Intrepid Potash, Inc. (the “Company”) and Intrepid Potash-New Mexico, LLC (“Intrepid NM,” and together with the Company, “Intrepid”) entered into the Third Amendment of Cooperative Development Agreement (the “Amendment”) with XTO Holdings, LLC (“XTO Holdings”) and XTO Delaware Basin, LLC, as successors in interest to BOPCO, L.P. (“XTO Delaware Basin,” and together with XTO Holdings, “XTO”). The Amendment has an effective date of January 1, 2024 (“Amendment Date”). The Amendment further amends that certain Cooperative Development Agreement, by and between the Company, Intrepid NM, BOPCO, L.P. and the other parties thereto, effective as of February 28, 2011 (as amended, including by the Amendment, the “CDA”), which was executed for the purpose of cooperative development of certain lands for potassium and oil and gas. The Cooperative Development Agreement restricts and limits the rights of Intrepid and XTO, as successors in interest to BOPCO, L.P. to explore and develop their respective interests, including limitations on the location of wells. Intrepid and XTO entered into the Amendment in an effort to further the cooperation, remove the restrictions and limitations, and allow for the efficient co-development of resources within the Designated Potash Area (“DPA”) consistent with the United States Secretary of the Interior Order 3324.

 

Pursuant to the Amendment, among other things, Intrepid agrees to support and not oppose XTO’s development and operation of XTO’s oil and gas interests within the DPA. As consideration under the Amendment, on December 12, 2023 and January 2, 2024, Intrepid shall receive initial payments of $5 million and $45 million, respectively, from XTO. The Amendment also provides that Intrepid shall receive an additional one-time payment equal to $50 million as an “Access Fee,” which XTO will pay within 90 days upon the earlier occurrence of (i) the approval of the first new or expanded drilling island within a specific area to be used by XTO or (ii) within seven (7) years of the anniversary of the Amendment Date. XTO is also required to pay additional amounts to Intrepid as an “Access Realization Fee,” up to a maximum amount of $100 million, in the event of certain additional drilling activities by XTO. The CDA also contains other customary representations, warranties, covenants, and dispute resolution provisions.

 

Petrie Partners is acting as financial advisor to the Company in connection with the transactions contemplated by the Amendment, and will receive a customary investment banking fee for its services.

 

The foregoing summaries of the Amendment and the CDA do not purport to be complete and are subject to and are qualified in their entirety by the terms of the Amendment and the CDA, which copies are attached hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference.

 

Item 9.01

Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.		Description
10.1†*		Third Amendment of Cooperative Development Agreement, effective as of January 1, 2024, among Intrepid Potash, Inc., Intrepid Potash-New Mexico, LLC, XTO Holdings, LLC and XTO Delaware Basin, LLC.
10.2†*		Cooperative Development Agreement, effective as of February 28, 2011, among Intrepid Potash, Inc., Intrepid Potash-New Mexico, LLC, BOPCO, L.P. and the other parties thereto (as amended prior to the Amendment).
104		Cover Page Interactive Data File (embedded with the Inline XBRL document)

 

† Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to supplementally furnish copies of any omitted schedules and exhibits to the SEC upon request.

 

* Certain portions of the exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K. The omitted information is not material and is the type of information that the registrant treats as private or confidential. The Company hereby undertakes to furnish supplemental copies of the unredacted exhibit upon request by the SEC.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	INTREPID POTASH, INC.
Dated: December 13, 2023	By:	/s/ Matthew D. Preston
		Matthew D. Preston
		Chief Financial Officer

 

 

Exhibit 10.1

 

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS “[***]”, HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

THIRD AMENDMENT OF

COOPERATIVE DEVELOPMENT AGREEMENT

 

THIS THIRD AMENDMENT OF COOPERATIVE DEVELOPMENT AGREEMENT (this “Amendment”), dated effective as of January 1, 2024 (the “Amendment Date”), is among Intrepid Potash, Inc., a Delaware corporation (“IPI”), and Intrepid Potash-New Mexico, LLC, a New Mexico limited liability company (“Intrepid-NM”, and together with IPI, collectively, “Intrepid”), and XTO Holdings, LLC, a Delaware limited liability company (“XTO Holdings”), and XTO Delaware Basin, LLC, a Texas limited liability company (“XTO Delaware Basin”, and together with XTO Holdings, collectively, “XTO”). IPI, Intrepid-NM, XTO Holdings and XTO Delaware Basin shall be referred to herein, individually, as a “Party”, and collectively, as the “Parties”.

 

Recitals

 

A.          Pursuant to that certain Cooperative Development Agreement, dated effective as of February 28, 2011, by and between Intrepid and BOPCO, as amended by that certain First Amendment of Cooperative Development Agreement, acknowledged on April 8, 2013, and that certain Second Amendment of Cooperative Development Agreement, acknowledged on September 23, 2013 (the “Agreement”), the parties thereto set forth their agreements regarding the cooperative development of the Agreement Area, as more particularly described therein, for potassium and oil and gas on lands in which both parties thereto owned or may acquire interests.

 

B.           XTO Delaware Basin is successor-in-interest to BOPCO’s Operating Interests in the Agreement Area and is the successor-in-interest to BOPCO under the Agreement.

 

C.           Intrepid and XTO desire to amend the Agreement in accordance with the terms of this Amendment.

 

Amendment

 

IN CONSIDERATION of the mutual premises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.            Definitions. Except as otherwise defined herein, all capitalized terms shall have the meanings assigned to them in the Agreement. Notwithstanding the foregoing, the following definitions shall replace and supersede any conflicting definitions in the Agreement:

 

“Access Fee” means the amount to be paid by XTO to Intrepid pursuant to Section 6(b) of this Amendment.

 

 

“Access Fee Drilling Island” means either a New Drilling Island or Expanded Drilling Island within the Agreement Area that:

 

(a)           is proposed by XTO;

 

(b)           is proposed by the BLM, and XTO notifies Intrepid of XTO’s Intent to Drill any Allowable Wells from such Drilling Island, or from which any Allowable Wells operated by XTO are drilled; or

 

(c)           is proposed by a third party and XTO requests Intrepid’s support for the drilling of any Allowable Wells from such Drilling Island.

 

“Access Realization Fee” means the amount to be paid by XTO to Intrepid for the Applicable Lateral Feet of an Applicable Lateral Well drilled within the Agreement Area pursuant to Section 6(c) of this Amendment [****]:

 

[****]

 

“Access Realization Fee Cap” shall have the meaning set forth in Section 6(c)(iii) of this Amendment.

 

“Access Realization Fee Drilling Island” means either a New Drilling Island, Expanded Drilling Island or a location outside a Drilling Island that is in accordance with sections 6.e.(1)(b) or 6.e.(1)(c) of the Secretary’s Order:

 

(a)           that is proposed by XTO;

 

(b)           from which XTO drills and operates an Allowable Well; or

 

(c)           from which an Allowable Well is drilled in which XTO’s Working Interest is equal to or greater than fifty percent (50%).

 

“Access Realization Fee Statement” shall have the meaning set forth in Section 6(c)(iv) of this Amendment.

 

[****]

 

“Actual Applicable Lateral Feet” shall have the meaning set forth in Section 6(c)(v) of this Amendment.

 

[****]

 

[****]

 

“Agreement” means that certain Cooperative Development Agreement, dated effective as of February 28, 2011, by and between Intrepid and BOPCO, as amended by that certain First Amendment of Cooperative Development Agreement, acknowledged on April 8, 2013, and that certain Second Amendment of Cooperative Development Agreement, acknowledged on September 23, 2013.

 

 

“Allowable Well” means any Well that meets the following requirements:

 

(a)           XTO owns an Oil and Gas Interest in the Well at the time the Well is spud;

 

(b)           the Well has a surface location that is within an Approved Drilling Island or is located outside of a Drilling Island and is in accordance with sections 6.e(1)(b) or 6.e(1)(c) of the Secretary’s Order;

 

(c)           the wellbore of the Well (as originally drilled, and as to such Well may be deepened, recompleted, sidetracked or reworked) does not enter, penetrate or cross into any depths within the Agreement Area above the Base of the McNutt Potash member of the Salado Formation, other than within the Approved Drilling Island on which the surface location of the Well is located; and

 

(d)           the Well is located and drilled in accordance with Applicable Law.

 

“Amendment” means this Third Amendment of Cooperative Development Agreement, dated effective as of the Amendment Date, among the Parties.

 

“Amendment Date” means the date expressly stated in the preamble of this Amendment as the Amendment Date.

 

“Applicable Lateral Feet” means:

 

(a)           with respect to a vertical well within the Agreement Area, the total drilled feet in an Applicable Lateral Well from the “first take point” to the “last take point” as reflected in the Form C-102 and Form C-105 (as applicable), or any successor forms, filed with the Commission; or

 

(b)           with respect to a horizontal well within the Agreement Area, the horizontal distance measured in feet drilled in that portion of an Applicable Lateral Well (including an Applicable Lateral Well drilled from a surface location outside the Agreement Area) from the “first take point” to the “last take point”, as reflected in the Form C-102 and Form C-105 (as applicable), or any successor forms, filed with the Commission or other Applicable Agency, but specifically excluding that portion of such Well outside of the Agreement Area.

 

“Applicable Lateral Well” means an oil or gas Allowable Well spud after the Amendment Date from a surface location within an Access Realization Fee Drilling Island. Applicable Lateral Well shall not include monitoring wells or wells that are drilled for the purpose of injecting for disposal saltwater or other fluids underground.

 

“Applicable Law” means all applicable laws, rules, regulations, orders, and instruction memoranda of the United States, New Mexico or any Applicable Agency, including the Secretary’s Order, IM, and Commission Order R-111-P, as may be amended from time to time.

 

 

“Approval” means the approval of any New Drilling Island or Expanded Drilling Island by the BLM or other Applicable Agency pursuant to Applicable Law. [****]

 

[****]

 

“Approved Drilling Island” means the Existing Drilling Islands and any Drilling Island that receives or has received Approval from the BLM pursuant to Applicable Law.

 

“BOPCO” means BOPCO, L.P., a Delaware limited partnership, and certain entities owned or controlled by the sons of Perry R. Bass (deceased) of Fort Worth, Texas.

 

“Buffer Zone” has the meaning set forth in the Secretary’s Order and IM.

 

“Calendar Year” means January 1^st through December 31^st.

 

“Designated Potash Area” means the lands described in Section 8 of the Secretary’s Order.

 

“Development Area” has the meaning set forth in the Secretary’s Order.

 

[****]

 

“Drilling Island” has the meaning set forth in the Secretary’s Order, and shall include any Existing Drilling Islands, New Drilling Islands, or Expanded Drilling Islands.

 

“Estimated Applicable Lateral Feet” shall have the meaning set forth in Section 6(c)(v) of this Amendment.

 

“Existing Drilling Islands” means the Drilling Islands within the Designated Potash Area that are depicted on Exhibit A-1 attached hereto and described in Exhibit C-1 attached hereto.

 

“Expanded Drilling Island” means an Expansion of an Existing Drilling Island that receives Approval after the Amendment Date pursuant to Applicable Law (excluding minor changes to the location, size, shape, acreage or boundaries or modifications requested by the BLM).

 

“Expansion” means one of the following:

 

(a) redesignation of a Drilling Island for oil Wells (as defined in the Secretary’s Order or IM) to a Drilling Island for gas Wells (as defined in the Secretary Order or IM) such that the Buffer Zone is increased in size in accordance to the IM and Secretary’s Order;

 

[****]

 

 

“IM” means the November 1, 2021 BLM Permanent Instruction Memorandum No. NM-PDO-2022-001, as may be amended from time to time.

 

“Intent to Drill” means the filing of an Application for Permit to Drill with an Applicable Agency.

 

“Intrepid” means IPI and Intrepid-NM.

 

“Intrepid-NM” means Intrepid Potash-New Mexico, LLC, a New Mexico limited liability company.

 

“IPI” means Intrepid Potash, Inc., a Delaware corporation.

 

[****]

 

“New Drilling Island” means any Drilling Island that is not listed on Exhibit C-1 that receives Approval after the Amendment Date pursuant to Applicable Law.

 

“Notice to Lessee” means the approval letter for a New Drilling Island or Expanded Drilling Island issued by the BLM pursuant to Applicable Law.

 

“Oil and Gas Interests” means all of XTO’s Working Interests, operating interests, record title, operating rights, reversionary interests and all other right, title, and interest in, to, and under oil and gas leases and fee interests covering lands within the Designated Potash Area, including those Working Interests described in Exhibit I within the Agreement Area, and shall include: (1) any oil and gas leases and fee interests covering lands within the Designated Potash Area that XTO acquires after the Amendment Date; and (2) any oil and gas leases and fee interests that expired or were revoked, terminated, or compulsorily released or surrendered in accordance with their terms or pursuant to Applicable Law that are subsequently revived, leased or re-acquired by XTO or an Affiliate of XTO.

 

“Party” or “Parties” means IPI, Intrepid-NM, XTO Delaware Basin and XTO Holdings, as appropriate.

 

“Potash Interests” means all of Intrepid’s right, title, and interest in, to, and under potassium leases and fee interests covering lands within the Designated Potash Area, as described in Exhibit J, and shall include: (1) any potassium leases and fee interests covering lands within the Designated Potash Area that Intrepid acquires after the Amendment Date; and (2) any Potash Interests that expired or were revoked, terminated, or compulsorily released or surrendered in accordance with their terms or pursuant to Applicable Law that are subsequently revived, leased or re-acquired by Intrepid or an Affiliate of Intrepid.

 

“Secretary’s Order” means the Secretary of the Interior Order No. 3324 regarding Oil, Gas, and Potash Leasing and Development within the Designated Potash Area of Eddy and Lea Counties, New Mexico effective December 3, 2012.

 

 

[****]

 

“Working Interest” means such ownership interest in an oil and gas lease or fee lands that gives the owner of the interest the right to drill and produce oil and gas on the leased or fee acreage and requires the owner to pay a share of the costs of the drilling and production operations.

 

“XTO” has the meaning set forth in the preamble.

 

“XTO Delaware Basin” has the meaning set forth in the preamble.

 

“XTO Holdings” has the meaning set forth in the preamble.

 

“XTO Persons” means XTO, its Affiliates, and its respective officers, directors, shareholders, partners, members, managers, employees, agents, contractors, subcontractors, consultants, representatives, accountants, and attorneys.

 

2.            Assumption. XTO hereby expressly assumes, and agrees to perform, bear, and pay all of BOPCO’s duties and obligations pursuant to the Agreement, as amended hereby.

 

3.            Oil and Gas Interests. Exhibit I to the Agreement is hereby amended in its entirety to include the Oil and Gas Interests owned by XTO covering lands within the Agreement Area as of the Amendment Date as described in Exhibit I attached to this Amendment. [****].

 

4.            Potash Interests. Exhibit J to the Agreement is hereby amended in its entirety to include the Potash Interests owned by Intrepid covering lands within the Agreement Area as of the Amendment Date as described in Exhibit J attached to this Amendment. [****].

 

5.            Drilling Islands.

 

(a)           Existing Drilling Islands. Exhibit C-1 as attached hereto is hereby added to the Agreement to describe the Existing Drilling Islands, and Exhibit C to the Agreement is hereby deleted in its entirety. Exhibit A-1 to the Agreement is hereby amended in its entirety by replacing it with the Exhibit A-1 attached hereto to depict the Designated Potash Area, the Agreement Area and the Existing Drilling Islands as described in Exhibit C-1 attached hereto. The Existing Drilling Islands shall be deemed conclusively to be Approved Drilling Islands hereunder.

 

(b)           New and Expanded Drilling Islands. The following shall be added as a new Section 2(o) to the Agreement:

 

XTO, in its sole discretion, shall have the right to seek BLM Approval and other Applicable Agency approval of New Drilling Islands, Expanded Drilling Islands, Development Areas and drilling permits for an Allowable Well within the Designated Potash Area. Any Drilling Island that receives Approval after the Amendment Date shall automatically be deemed an Approved Drilling Island under this Agreement. Upon Intrepid’s request, XTO shall, within thirty (30) days of such request, provide Intrepid with a revised Exhibit C-2 of all Drilling Islands known by XTO to have received Approval from the BLM after the Amendment Date. XTO shall promptly deliver to Intrepid written notice of the Approval of all New Drilling Islands and Expanded Drilling Islands, including copies of all Notices to Lessees received by XTO, upon its receipt of the Approval in writing.

 

 

(c)           Allowable Wells. [****]. An Allowable Well may be drilled from any Approved Drilling Island within the Designated Potash Area and shall not have a Drilling Island Term. This shall supersede any conflicting language within the Agreement.

 

(d)           Intrepid Support. Section 2(h) of the Agreement is hereby amended and replaced in its entirety as follows:

 

2(h). Intrepid Support.  Subject to XTO’s compliance with the terms of the Agreement, as amended by this Amendment, and Applicable Law, Intrepid agrees to support and not oppose any of XTO’s development and operation of Allowable Wells, Approved Drilling Islands and related infrastructure and facilities within the Designated Potash Area, [****]:

 

[****]

 

(e)           [****]

 

(f)           [****]

 

6.            Payments. The Parties agree that Intrepid shall be entitled to the compensation set forth in this Section 6, and the Parties further agree that this is the only compensation that Intrepid shall be entitled to receive from XTO for entering into this Amendment and performing its obligations pursuant to the Agreement as amended hereby.

 

(a)           Initial Payment. On execution of this Amendment, XTO shall pay Intrepid an amount equal to FIVE MILLION and No/100 US Dollars (U.S. $5,000,000.00) by wire transfer to the account designated by Intrepid. On January 2, 2024, XTO shall pay Intrepid an amount equal to FORTY-FIVE MILLION and No/100 US Dollars (U.S. $45,000,000.00) by wire transfer to the account designated by Intrepid.

 

(b)           Access Fee. Within thirty (30) days of receiving written notice of Approval, XTO shall deliver to Intrepid written notice of the Approval of the first Access Fee Drilling Island. XTO shall pay Intrepid an additional amount equal to FIFTY MILLION and No/100 US Dollars (U.S. $50,000,000.00) by wire transfer to the account designated by Intrepid, on or before ninety (90) days after the earlier of: (i) the Approval of the first Access Fee Drilling Island; or (ii) the seventh (7^th) anniversary of the Amendment Date (the “Access Fee”). The Access Fee shall be a one-time payment, and no additional amount is due for any subsequent Approval of any additional New Drilling Island or Expanded Drilling Island.

 

 

(c)           Access Realization Fee.

 

(i)            XTO shall pay Intrepid an Access Realization Fee for each Applicable Lateral Well to the extent that the Well’s Applicable Lateral Feet are within the Agreement Area. XTO shall pay the Access Realization Fee on an annual basis on or before April 1^st of the subsequent Calendar Year.

 

(ii)           [****]

 

(iii)           The Access Realization Fees payable by XTO to Intrepid shall not exceed, in the aggregate, ONE HUNDRED MILLION and No/100 US Dollars (U.S. $100,000,000.00) (“Access Realization Fee Cap”), and XTO’s obligation to pay the Access Realization Fees shall not be applicable to any additional Applicable Lateral Feet after XTO has paid Intrepid the Access Realization Fee Cap.

 

(iv)          Each Access Realization Fee shall be based on the Applicable Lateral Feet drilled of an Applicable Lateral Well and payable in arrears, but XTO shall make payment based on a good faith estimate of the Applicable Lateral Feet for all Applicable Lateral Wells spud during the previous Calendar Year (the “Estimated Applicable Lateral Feet”). Such estimate shall be equal to the distance in feet drilled in an Applicable Lateral Well from the “first take point” to the “last take point,” as reflected in the Form C-102 and Form C-105 (as applicable), or any successor forms, filed with the Commission or other Applicable Agency, but specifically excluding that portion of such Applicable Lateral Well outside of the Agreement Area. [****]. XTO shall pay Intrepid the Access Realization Fees annually on April 1^st in the amount specified in the Access Realization Fee Statement.

 

(v)           [****] the estimated Access Realization Fee for an Applicable Lateral Well shall be adjusted for any difference between XTO’s Estimated Applicable Lateral Feet that was paid by XTO to Intrepid and the Actual Applicable Lateral Feet. [****]

 

(vi)          [****]

 

(vii)         [****]

 

(d)           Assignment of Potash Interests. If Intrepid voluntarily sells, assigns, transfers, exchanges or otherwise disposes any Potash Interests and is no longer the lessee/owner of the closest potassium lease/interest to the centroid of an Access Realization Fee Drilling Island, the right to receive the Access Realization Fees for any Applicable Lateral Wells spud from a surface location within such Drilling Island after the date of such sale, assignment, transfer or exchange shall be transferred to the recipient of such Potash Interests. If Intrepid assigns Potash Interests under this section, Intrepid shall not be obligated to repay or refund any Initial Payment, Access Fee, or Access Realization Fees previously paid by XTO to Intrepid at the time of such assignment.

 

 

(e)           [****]

 

7.            Disclosure. The Parties agree that to extent Intrepid determines it needs to file notice of this Amendment with the United States Securities and Exchange Commission, Intrepid shall utilize the Form 8-K attached hereto as Exhibit K.

 

8.            [****]

 

9.            Representations and Warranties. Intrepid represents and warrants to XTO that the representations and warranties set forth in Section 6 of the Agreement are true and correct as of the Amendment Date. XTO represents and warrants to Intrepid that the representations and warranties set forth in Section 7 of the Agreement, with XTO replacing BOPCO therein, are true and correct as of the Amendment Date.

 

10.           Notices. The notice addresses set forth in Section 11 of the Agreement are updated as follows:

 

If to XTO:

If to Intrepid:

 

11.           Recording. Section 21 of the Agreement regarding recording is hereby amended and replaced in its entirety as follows:

 

21.           Recording. The Parties agree that the Agreement, as amended hereby, will not be filed for recording in any public real property record and that a memorandum of the Agreement, as amended hereby, in the form of Exhibit G shall be recorded in the real property records of Eddy and Lea Counties, New Mexico, and such recording memorandum shall be supplemented of record from time to time to reflect any additional interests covering any lands within the Designated Potash Area acquired by any Party, or its successors and assigns.

 

Further, Exhibit G of the Agreement is hereby replaced with the Exhibit G attached hereto.

 

12.           Relationship. Nothing in the Agreement as amended by this Amendment shall be deemed or construed to create the relationship of limited or general partners, or of a mining partnership, or of joint venturers, or any other association between the Parties to the Agreement as amended hereby.

 

 

13.           Miscellaneous.

 

(a)           Exhibits. The Exhibits attached to this Amendment are hereby incorporated herein by reference and made a part hereof, as if set forth in their entirety herein.

 

(b)           Entire Agreement. The Agreement as amended by this Amendment contains the complete understanding and agreements of the Parties hereto with respect to the matters referred to in the Agreement as amended by this Amendment, and all prior representations, negotiations and understandings are superseded by the Agreement as amended by this Amendment.

 

(c)           Amendment; Waiver. No waiver of any default or any obligation by any Party to the Agreement, as amended hereby, shall be implied from any failure by any other Party to take action with respect to the default or unperformed obligation. The Agreement as amended hereby may not be amended nor any rights thereunder or hereunder waived except by an instrument in writing signed by the Party to be charged with such amendment or waiver and delivered by such Party to the Party claiming the benefit of such amendment or waiver.

 

(d)           Binding Effect; Conflicts. As amended hereby, the Agreement is in full force and effect, and valid and binding in accordance with its terms. Notwithstanding anything to the contrary, in the event of a conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall control and govern the point in conflict. The failure to address a term in this Amendment and the Agreement shall not be deemed to be a conflict.

 

(e)           Covenants Running with the Land; After Acquired Interests; Binding on Assignees. Section 10 of the Agreement is hereby modified to include XTO’s Oil and Gas Interests and Intrepid’s right, title, and interest in, to, and under potassium leases and fee interests covering lands within the Designated Potash Area, including after acquired interests of the Parties in the Designated Potash Area, whether owned on the Amendment Date or acquired by a Party after the Amendment Date.

 

(f)           Severability. It is the intent of the Parties that the provisions contained in this Amendment shall be severable. Should any of the provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions of this Amendment, and such portions that are not invalid shall be given effect without the invalid portion.

 

(g)           Construction. The Parties stipulate and agree that this Amendment and the language used in this Amendment are the product of both Parties’ efforts in consultation with their attorneys and other consultants, and each Party hereby irrevocably waives the benefit of any rule of contract construction which disfavors the drafter of an agreement or the drafter’s specific language in the agreement.

 

(h)           Headings and References. The headings of the sections of this Amendment and any description of its contents are for guidance and convenience of reference only and shall not limit or otherwise affect any of the terms or conditions of this Amendment. All references in this Amendment, including use of a pronoun, shall be deemed to include, where applicable, masculine, feminine, singular, or plural, individuals or entities. The word “including” shall mean “including, without limitation”.

 

 

(i)           Further Assurances. Each Party hereby agrees to take such further actions, and execute such further documents, as may be necessary or convenient for each Party to fully enjoy its surface use or other rights covered hereby.

 

(j)           Counterparts; Electronic Signatures. This Amendment may be signed in any number of counterparts, each of which shall be deemed to be an original for all purposes, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may be executed by telecopy or electronic transmission of a pdf of a signed copy of this Amendment.

 

(k)           [****]

 

[SIGNATURE PAGES FOLLOW]

 

 

EXECUTED on the dates set forth in the acknowledgements below, to be effective for all purposes as of the Amendment Date.

 

INTREPID:			XTO:
Intrepid Potash, Inc. a Delaware corporation			XTO Holdings, LLC a Delaware limited liability company
By:			By:
Name:			Name:
Title:			Title:

 

Intrepid Potash – New Mexico, LLC a New Mexico limited liability company			XTO Delaware Basin, LLC a Texas limited liability company
By:			By:
Name:			Name:
Title:			Title:

 

 

Exhibits

 

A-1	Map of Designated Potash Area, Agreement Area and Drilling Islands

C-1	Description of Existing Drilling Islands

C-2	Description of New Drilling Islands and Expanded Drilling Islands

G	Form of Recording Memorandum

I	Working Interests covering lands within Agreement Area

J	Potash Interests covering lands within the Designated Potash Area

K

Form 8-K

 

 

 

Exhibit 10.2

 

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS “[****]”, HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

COOPERATIVE DEVELOPMENT AGREEMENT

 

This Cooperative Development Agreement (this “Agreement”) is made and entered into by and between Intrepid Potash, Inc., a Delaware corporation (“IPI”), and Intrepid Potash-New Mexico, LLC, a New Mexico limited liability company (“Intrepid-NM”), each with an address of 707 17^th Street, Suite 4200, Denver, Colorado 80202 (collectively “Intrepid”), and BOPCO, L.P., a Delaware limited partnership, and the Bass Owners, whose address is [****] (collectively, “BOPCO”), to be effective for all purposes as of the 28th day of February, 2011 (the “Effective Date”). References in this Agreement to a “Party” shall, as the context requires, refer to both IPI and Intrepid-NM as one Party and to BOPCO as a Party, and, collectively, as the “Parties.”

 

WITNESSETH:

 

WHEREAS, Intrepid-NM is the current lessee under certain potassium leases and owns certain potassium and other fee interests in the Agreement Area including leases under certain of the lands that were part of the idled mine known as the Eddy Mine located in Eddy County, New Mexico, and has proposed to develop the HB In-Situ Project on certain lands within the In-Situ Project Area; and

 

WHEREAS, BOPCO is operator for certain entities owned or controlled by sons of Perry R. Bass (deceased) of Fort Worth, Texas, which collectively are the Bass Owners, each of which owns certain working interests in oil and gas leases covering certain lands within the Agreement Area (including the In-Situ Project Area); and

 

WHEREAS, Intrepid will support BOPCO’s efforts to develop BOPCO’s oil, gas and mineral interests covering lands within the Agreement Area [****]; and

 

WHEREAS, it is the desire of Intrepid and BOPCO to enter into this Agreement to set forth their agreements regarding the cooperative development of certain lands for potassium and oil and gas on lands in which both Parties own or may acquire interests, as more particularly set forth herein.

 

NOW, THEREFORE, Intrepid and BOPCO, for good and valuable consideration, the full receipt and sufficiency of which are hereby acknowledged and confessed, including the covenants and agreements contained herein, hereby agree as follows:

 

1.             Definitions.

 

“Affiliate” of a Person is a Person that directly or indirectly controls, is controlled by or is under common control with, such Person. A Person that has a 50 percent or more interest in another Person shall be conclusively deemed to be a controlling Person.

 

“Agreement Area” means the lands within the boundary of the red line shown on Exhibit A-1 and described as the “Agreement Area” by legal description in Exhibit B-1.

 

“Allowable Well” is defined in Sections 2(a), (b) and (c).

 

 

“Applicable Agency” means the BLM, the New Mexico State Land Office, the Commission, and such other federal or State of New Mexico administrative agencies having leasing or operational jurisdiction over the conduct of the Parties in the Agreement Area (for clarity, in certain circumstances one or more federal or State of New Mexico agencies may have concurrent jurisdiction over the leasing or operations of the Parties).

 

“Applicable Co-Owners” means, with respect to taking any operation or action, or refraining from taking any operation or action, with respect to a Well or oil and gas lease or other Operating Interest required under this Agreement, those Persons owning Operating Interests, including the Bass Owners, whose consent, approval, authorization, waiver or agreement is required (or may be required at the time such operation or action is to be undertaken or refrained from being undertaken) under the applicable operating agreements, unit operating agreements, unit agreements, other applicable agreements, or applicable laws, rules or regulations to undertake or refrain from undertaking such operation or action.

 

“Base of the McNutt Potash Member of the Salado Formation” [****].

 

“Bass Owners” means those Persons executing this Agreement identified as the “Bass Owners” on the signature pages of this Agreement.

 

“Big Eddy Unit No. 10 Well” [****].

 

“Big Eddy Unit No. 44 Well” [****].

 

“BLM” means the United States Department of the Interior, Bureau of Land Management.

 

“BLM Setback” means the distance by which any oil or gas wellbore should be, or is required to be, separated from any area in the In-Situ Project Area to be solution mined by the HB In-Situ Project, as such distance is determined by the BLM in connection with its record of decision with respect to the environmental impact statement for the HB In-Situ Project, as such distance may be redetermined from time to time by the BLM.

 

“BOPCO Persons” means BOPCO, its Affiliates, the Bass Owners, and their respective officers, directors, members, managers, employees, agents, attorneys and representatives.

 

“Claims” shall mean all claims, demands, obligations, actions, mechanics’ or other liens, encumbrances, liabilities, losses, costs, expenses, damages, fines and penalties of every kind and nature whatsoever, in law or equity, whether known or unknown, whether fixed or contingent.

 

“Commission” means that State of New Mexico Energy, Minerals and Natural Resources Department, Oil Conservation Division.

 

“Co-Owner Consent” is defined in Section 2(k).

 

“Directional Survey” means a well survey that measures the degree of departure of the wellbore from the vertical and the direction and distance of departure.

 

 

“Drilling Island” means [****], as the context requires. The lands covered by each Drilling Island are reflected by Drilling Island number on the map attached hereto as EXHIBIT A-1 and described by legal description in Exhibit C.

 

“Drilling Island Term” [****].

 

“GH Cobb Federal No. 1 Well” [****].

 

“HB In-Situ Project” means that solution mining project in Eddy County, New Mexico, presently in the NEPA EIS process by BLM, designed to recover and process potassium chloride from remaining ore in former underground workings, including conditions, requirements or alternatives to it approved or required by BLM. [****].

 

“In-Situ Project Area” [****].

 

“Intrepid Persons” means IPI, Intrepid-NM, their Affiliates, and their respective officers, directors, members, managers, employees, agents, attorneys and representatives.

 

“Josephine Rodke Federal No. 1 Well” [****].

 

“Operating Interests” means working interests, operating interests, record title, operating rights, back-in or reversionary interests, or any other interests or rights or any kind (whether contractual rights or interests in real property) in oil and gas leases or the oil and gas fee estate that give the owner thereof the right or power to vote, consent to or authorize any operation or action, or refrain from taking any operation or action, on such interests, or require the vote, consent, authorization or waiver from such owner with respect thereto, including the rights of BOPCO and the Bass Owners [****].

 

“Person” means an individual, natural person, corporation, joint venture, partnership, limited partnership, limited liability partnership, limited liability company, trust, estate, business trust, association, governmental authority or any other entity.

 

“Term” is defined in Section 7.

 

“Well” means an oil or gas well, injection well, salt water disposal well, water well, or any other well of any kind.

 

2.            Allowable Wells With a Surface Location on Term Drilling Islands; Allowable Wells on Drilling Island with no Term; Other Restrictions.

 

(a)            Allowable Well on a Drilling Island with a Term. An “Allowable Well” shall mean, with respect to a Well on a Drilling Island with a Drilling Island Term, any Well that meets each of the following requirements:

 

(i)            BOPCO owns an Operating Interest in the Well at the time the Well is proposed, drilled and completed;

 

 

(ii)           the Well has a surface location that is within a Drilling Island with a Drilling Island Term;

 

(iii)          the Well will be drilled and completed prior to the expiration of the Drilling Island Term with respect to such Drilling Island;

 

(iv)          the wellbore of the Well (as originally drilled, and as such Well may be deepened, recompleted, sidetracked or reworked) does not enter, penetrate or cross into any depths within the Agreement Area above the Base of the McNutt Potash Member of the Salado Formation, other than within the Drilling Island on which the surface location of the Well is located;

 

(v)           the Well is drilled, logged and completed in accordance with applicable laws, rules and regulations (for clarity, Intrepid shall not assert that any applicable law, rule or regulation prevents BOPCO from locating Wells as otherwise permitted by the terms of this Agreement);

 

(vi)          [****];

 

(vii)         [****]; and

 

(viii)        [****].

 

(b)            Allowable Wells on a Drilling Island with no Term. An Allowable Well shall also include any Well drilled on Drilling Islands [****].

 

(c)            Allowable Wells drilled into the Agreement Area from off the Agreement Area. [****].

 

(d)            Condition Precedent to Certain Drilling. [****].

 

(e)            Directional Survey. BOPCO shall conduct a Directional Survey of each Well drilled on a Drilling Island or from a surface location outside the Agreement Area into the Agreement Area, as it is being drilled and upon reaching total depth to verify that such Well complies with the requirements of this Agreement and shall furnish a copy of such survey to Intrepid within 24 hours after it is obtained by BOPCO.

 

(f)            Josephine Rodke Federal No. 1 Well. [****].

 

(g)            [****]

 

(h)            [****]

 

(i)            Inspections and Reports. Intrepid and its authorized agents and representatives shall have access to the Drilling Islands and the location of Allowable Wells under Section 2(c), and shall have the right to witness and observe all operations conducted thereon, including the drilling, logging, testing, casing, completing, Directional Surveying, and plugging and abandonment of any Well thereon. BOPCO will furnish to Intrepid, upon request, copies of all reports filed with an Applicable Agency with respect to the drilling, logging, testing, casing, completing, Directional Surveying, and plugging and abandonment of any Well; Intrepid shall maintain the confidentiality of any such document or information marked “confidential” by BOPCO as provided in Section 5(b). Intrepid shall indemnify, defend and save and hold harmless BOPCO from and against any claims and liabilities for damage to property or injury to Persons arising out of the acts or omissions of Intrepid or its agents or representatives in connection with such inspections, except to the extent such claim or liability is attributable to the gross negligence or willful misconduct of BOPCO or its contractors.

 

 

(j)            BOPCO Covenant Not to Drill Certain Wells; Other Interference; Surface Use. [****]

 

(k)            Applicable Co-Owners Related Covenants. [****]

 

(l)            No Assurance. BOPCO acknowledges and agrees that its operations are subject to applicable laws, rules and regulations, including the rules and regulations of the Applicable Agencies, and any agreements with third parties to which BOPCO is a party or to which its oil and gas leases are subject, that neither Intrepid nor its Affiliates own or control all of the potassium leases or potassium fee estate in the Agreement Area and that such other owners thereof are not bound by this Agreement, and may object to Allowable Wells, and that Intrepid is not giving BOPCO any assurance that BOPCO has the legal right to locate and drill any Well on any Drilling Island or that BOPCO will be able to obtain any required permits, consents or authorizations. BOPCO shall be solely responsible for obtaining all required permits, consents and authorizations that may be necessary to conduct its operations, with Intrepid’s support as provided in Sections 2(g) and (h).

 

(m)            Third Party Oil and Gas Activity within the Agreement Area and Intrepid Use of Drilling Islands.

 

(i)            [****]

 

(ii)            Intrepid shall have the right of ingress and egress across the Drilling Islands to reach its potassium leases and operations and the right to locate pipelines, utilities and other facilities on the Drilling Islands, provided that such uses shall not unreasonably interfere with BOPCO’s use of a Drilling Island.

 

(n)            Additional Development Ordered by BLM. [****]

 

3.              Intrepid Right to Require BOPCO to Plug and Abandon Wells.

 

[****]

 

4.              HB In-Situ Project.

 

[****]

 

 

5.              Other Covenants and Agreements.

 

(a)            Not Contingent on Applicable Agency Approval. The effectiveness and enforceability of Agreement is not subject to or conditioned upon approval, concurrence or acceptance of this Agreement by the BLM or any other Applicable Agency.

 

(b)            Confidentiality. The Parties agree that the terms of this Agreement, the Exhibits hereto, and all information furnished by one Party to the other Party in connection with the negotiation or performance of this Agreement, shall be kept confidential; provided that nothing contained herein shall be deemed to prevent disclosure of the existence of or of any of the terms and conditions of this Agreement (i) if a Party is required to make such disclosure under the rules and regulations of the United States Securities and Exchange Commission or other applicable law or under the rules and regulations of the New York Stock Exchange (or other public stock exchange of similar reputation and standing) on which the shares of such Party or any of its Affiliates are listed, then the same may be made without the approval of the other Party (the opinion of counsel of the Party making such announcement or statement shall be conclusive evidence of such requirement by law, rule or regulation), (ii) to the extent necessary to enforce this Agreement (including BOPCO obtaining necessary Co-Owner Consents), or (iii) if such disclosure is legally required to be made in a judicial, administrative, or governmental proceeding pursuant to a valid subpoena or other applicable order; provided, however, in the case of disclosure under this clause “(iii)” the disclosing Party shall give the other Party at least ten days’ prior written notice (unless less time is permitted by the applicable proceeding) before disclosing the existence of or any of the terms and conditions of this Agreement in any such proceeding and, in making such disclosure, the disclosing Party shall disclose only that portion thereof required to be disclosed and shall take all reasonable efforts to preserve the confidentiality thereof, including obtaining protective orders and supporting non-disclosing Party in intervention. Either Party may disclose information covered by this Section 5(b) to any Person who has a bona fide intention to pursue a potential transaction or potential financing with the disclosing Party relating to the Agreement Area or any portion thereof for the purposes of evaluating such transaction, or to the disclosing Party’s professional advisors providing services relating to the Agreement Area, provided that, in each case, prior to the disclosure of the information to any such Person, such Person shall have agreed to comply with the obligations of confidentiality contained herein. This Section 5(b) shall not apply to any information that (1) is in the recipient’s possession prior to disclosure to the recipient, (2) is in the public domain prior to disclosure to recipient, or (3) lawfully enters the public domain through no violation of this Agreement after disclosure to the recipient.

 

(c)            [****]

 

(d)            [****]

 

(e)            Cooperation to Inform Applicable Agencies. The Parties will cooperate with each other to prepare a summary of this Agreement acceptable to each Party to be jointly submitted to the BLM and the Commission. Such jointly agreed upon disclosure shall be deemed permitted under Section 5(b).

 

(f)             [****]

 

(g)            [****]

 

 

(h)            [****]

 

(i)             [****]

 

6.              Representations and Warranties.

 

 [****]

 

7.              Term. This Agreement shall have a term of 35 years (the “Term”) commencing on the Effective Date. Upon the expiration of the Term this Agreement shall terminate; provided, however, that (i) the provisions of Section 3 shall survive and shall continue in full force and effect after the Term with respect to all Wells for which APDs have been applied for prior to the expiration of the Term, and (ii) any Claims arising under this Agreement that accrue prior to such termination shall survive such termination. Following such termination, except as provided above, the Parties shall have no further obligations under this Agreement with respect to their respective operations in the Agreement Area or otherwise and BOPCO may seek to drill Wells in the Agreement Area to the extent of its legal rights and Intrepid shall have the right to protest and seek to prevent such drilling to the extent of its legal rights.

 

8.              No Partnership. Nothing in this Agreement shall be deemed or construed to create the relationship of limited or general partners, or of a mining partnership, or of joint venturers, or of any other association between any of the Parties to this Agreement.

 

9.              No Waiver; Amendment. No waiver of any default or any obligation by any Party to this Agreement shall be implied from any failure by any other Party to take any action with respect to the default or unperformed obligation. This Agreement may not be amended nor any rights hereunder waived except by an instrument in writing signed by the Party to be charged with such amendment or waiver and delivered by such Party to the Party claiming the benefit of such amendment or waiver.

 

10.           Covenants to Run with the Land; After-Acquired Interests; Binding_ on Assignees.

 

(a)            Rights Assignable. If either Party assigns any of its interests in the Agreement Area to any Person, the assigning Party shall assign its rights and cause such assignee to assume its obligations hereunder insofar as the same cover or relate to the assigned interests, subject to the conditions and obligations contained in Sections 10(b), (c) and (d), below. No such assignment shall require the consent of the non-assigning Party.

 

(b)            Run With Land. Each of the waivers, covenants, agreements, conditions, restrictions, rights, and obligations set forth in this Agreement (i) shall run with and bind the interests of the Parties in the Agreement Area, including the In-Situ Project Area, and their successors and assigns, (ii) create equitable servitudes on such interests in favor of and appurtenant to the real property benefited thereby, and (iii) shall inure to the benefit of the Parties to this Agreement, and their successors, and assigns.

 

 

(c)            After-Acquired Interests. This Agreement shall cover all interests of the Parties in the Agreement Area, whether owned on the Effective Date or acquired by a Party after the Effective Date.

 

(d)            Assumption by Successors. Each Party shall cause any assignee or successor to any of its interests in the Agreement Area to expressly assume the assignor’s obligations under this Agreement insofar as it relates to the assigned interests. No such assignment by a Party to this Agreement shall be effective until such assumption has been furnished to the other Party to this Agreement.

 

11.            Notices. All notices or other communications required or permitted to be given pursuant to this Agreement shall be in writing, and shall be considered as properly given if (i) mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested, (ii) by actual delivery of the notice in person to the intended addressee, or (iii) by delivery to an independent third party commercial delivery service for same day or next day delivery and providing for evidence of receipt at the office of the intended addressee. Notice so mailed shall be effective two (2) business days after it is deposited in the United States Postal Service; notice sent by personal delivery or by a commercial delivery service shall be effective upon delivery to the office or designated location of the intended addressee. For purposes of notice, the addresses and contact persons and information of the Parties hereto shall be as set forth below; provided, however, any Party shall have the right to change its address or contact person for notice by giving thirty (30) days notice to the other Parties hereto in the manner set forth in this Agreement.

 

If to BOPCO:
[****]

 

If to Intrepid:
[****]

 

and

 

INTREPID POTASH, INC.
[****]

 

12.          Compliance with Law. Intrepid and BOPCO each separately covenant that it will strictly comply with all applicable laws, rules, regulations, and ordinances in conducting its operations under this Agreement.

 

13.          Encumbrances. This Agreement is made subject to all existing licenses, permits, easements, rights-of-way, surface leases, restrictive covenants, and other contracts of Intrepid or BOPCO or their predecessors-in-interest, respectively, affecting the Agreement Area, including the In-Situ Project Area.

 

 

14.          Further Assurances. Intrepid and BOPCO each agree to take such further actions, and execute such further documents, as may be necessary or convenient for each Party to fully enjoy its surface use or other rights covered hereby.

 

15.          Attorneys’ Fees. In the event a Party institutes any legal action or proceeding for the enforcement of any right or obligation contained in this Agreement, the prevailing Party shall be entitled to recover its costs and reasonable attorneys’ and experts’ fees in the preparation and prosecution of that action or proceeding.

 

16.          Entire Agreement. This Agreement contains the complete understanding and agreements of the Parties hereto with respect to the matters referred to in this Agreement, and all prior representations, negotiations, and understandings are superseded by this Agreement.

 

17.          Severability. It is the intent of the Parties that the provisions contained in this Agreement shall be severable. Should any provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion.

 

18.          No Third Party Beneficiaries. This Agreement is intended only to benefit the Parties hereto and their respective permitted successors and assigns. Except as expressly provided in this Agreement, nothing in this Agreement is intended to limit or otherwise waive any claim or recourse a Party may have against any Person that is not a Party to this Agreement.

 

19.          Governing Law/Venue. The substantive laws of the State of New Mexico shall govern the interpretation, validity, performance, and enforcement of this Agreement. The Parties consent to jurisdiction and venue in the United States District Court for the District of New Mexico, Albuquerque Division (or, if such court does not have jurisdiction, any New Mexico State District Court in Eddy or Lea County, New Mexico) with respect to all claims arising under this Agreement. EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT. Except as provided in Section 20, the Parties also agree that as a condition precedent to filing litigation, any Party intending to assert a claim must first give the other Party written notice of the nature of the claim, and the essential facts supporting the claim, and if the issue cannot be resolved by discussions between upper management of the Parties, the Parties will engage in mediation with a mediator selected by their mutual agreement; if they are unable to agree upon a mediator within fifteen (15) business days of receipt of the notice of the claim, a mediator shall be appointed by the Albuquerque office of the American Arbitration Association; the mediator shall be experienced in complex contractual disputes concerning oil and gas development and mining operations. If the claims have not been finally resolved by the mutual agreement of the Parties within 60 days after receipt of the notice described above, either Party may commence litigation with respect to such claims.

 

 

20.          Injunctive Relief. Each Party agrees that if this Agreement is breached, or if a breach hereof is threatened, without limiting any other remedy available at law or in equity, an injunction, restraining order, specific performance and other forms of equitable relief shall be available to non-breaching Party. The mediation provisions of Section 19 shall not apply to seeking such relief. The Parties acknowledge and agree that in the event of a breach of this Agreement, that any remedy at law may be inadequate and that the non-breaching Party would suffer immediate and irreparable injury, loss and damage; and, to the fullest extent not prohibited by applicable law, any action brought for such relief may be brought by the non-breaching Party upon ex parte application and without notice or posting of any bond, and the breaching Party expressly waives any requirement for notice or the posting of any bond. Any such relief or remedy shall not be exclusive, but shall be in addition to all remedies available at law or in equity.

 

21.          Recording. The Parties hereto agree that this Agreement shall not be filed for recording in any public record and that a memorandum of this Agreement, including any and all Co-Owners Consents hereto, in the form of Exhibit G hereto shall be recorded in the real property records of Eddy and Lea Counties, New Mexico, and such recording memorandum shall be supplemented of record from time to time to reflect any additional Operating Interests acquired by BOPCO or its Affiliates, their successors and assigns, in the Agreement Area.

 

22.         Counterparts; Electronic Signature. This Agreement may be signed in any number of counterparts, each of which shall be considered an original for all purposes, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may be executed by telecopy or electronic transmission of a pdf of a signed copy of this Agreement.

 

23.          Exhibits. The Exhibits referred to in this Agreement are hereby incorporated in this Agreement by reference and constitute a part of this Agreement.

 

24.          Waiver of Right to Rescission. Each Party acknowledges that its right to specifically enforce this Agreement, its right to injunctive relief, and its right to monetary damages and other remedies at law or in equity (other than the rescission of this Agreement) shall be adequate compensation for breach of any representation, warranty, covenant or agreement contained herein or for any other claim arising in connection with or with respect to this Agreement. As such remedies shall be adequate, each Party waives any right to rescind this Agreement.

 

25.          Mutually Drafted. The Parties stipulate and agree that this Agreement and the language used in this Agreement are the product of both Parties’ efforts in consultation with their attorneys and other consultants and each Party hereby irrevocably waives the benefit of any rule of contract construction which disfavors the drafter of an agreement or the drafter’s specific language in an agreement.

 

26.          References. References made in this Agreement, including use of a pronoun, shall be deemed to include where applicable, masculine, feminine, singular or plural, individuals or entities. The word “including” shall mean “including, without limitation”.

 

 

IN WITNESS WHEREOF, this Agreement is executed by each Party on the date subscribed to the respective acknowledgments set forth below, but for all purposes effective as of the Effective Date.

INTREPID:			BOPCO:
Intrepid Potash, Inc.,			BOPCO, L.P., a Delaware limited partnership
a Delaware corporation
By:	/s/ John Mansanti		By:	BOPCO GP, L.L.C., a Delaware limited liability company, general partner
Its: V.P of Operations
			By:	/s/ W. Frank McCreight
Printed Name: John Mansanti				W. Frank McCreight
				Senior Vice President
Intrepid Potash-New Mexico, LLC,			BASS OWNERS:
a New Mexico limited liability company
			BMT O&G NM, L.L.C.
			CTV O&G NM, L.L.C.
			KEYSTONE O&G NM, L.L.C.
By:	/s/ John Mansanti		RMB O&G NM, L.L.C.
			FINE LINE O&G NM, L.L.C.
Its: V.P of Operations			THRU LINE O&G NM, L.L.C.
			820MT O&G NM, L.L.C.
Printed Name: John Mansanti			LMBI O&G NM, L.L.C.
			SRBI O&G NM, L.L.C.
			SRBMT O&G NM, L.L.C.
			WD O&G NM, L.L.C.
			ARB-LMB PC O&G NM, L.L.C.,
			each a Delaware limited liability company
			By:	/s/ W. Frank McCreight
				W. Frank McCreight
				Vice President of all the above companies

 

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS “[****]”, HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

FIRST AMENDMENT OF
COOPERATIVE DEVELOPMENT AGREEMENT

 

WHEREAS, by that certain Cooperative Development Agreement (the “Agreement”) dated effective February 28, 2011, between Intrepid Potash, Inc. and Intrepid Potash-New Mexico, LLC (“Intrepid”), on the one hand, and BOPCO, L.P. and the additional Bass owners identified in the Agreement (collectively “Bass”), on the other hand, the Parties agreed, among other things, upon designating certain “drilling islands” within the “Agreement Area” for use by Bass to facilitate its development of the area for oil and gas and Intrepid’s concurrent development of the Agreement Area for potassium or potash; and

 

WHEREAS, the Bureau of Land Management (“BLM”) has declined to approve the location of [****] for environmental reasons; and,

 

WHEREAS, the Parties, pursuant to Section 3.(a)(iv) have agreed upon an alternate location for [****].

 

NOW, THEREFORE, in consideration of the premises, the Parties hereby agree to amend the Agreement as follows:

 

Exhibit A-1 and C to the Agreement are hereby amended to show [****] to be located upon and contain a tract of land within [****].

 

Except as amended hereby, the Agreement shall continue in full force and effect according to its terms.

 

IN WITNESS WHEREOF, this Agreement is executed by each Party on the date subscribed to the respective acknowledgments set forth below, but for all purposes effective as of the Effective Date of the Agreement.

INTREPID:			BOPCO:
Intrepid Potash, Inc.,			BOPCO, L.P., a Delaware limited partnership
a Delaware corporation
			By:	BOPCO GP, L.L.C., a Delaware limited liability company, general partner
By:	/s/ Martin D. Litt
Its: Executive Vice President & General Counsel			By:	/s/ W. Frank McCreight
				W. Frank McCreight
Printed Name Martin D. Litt				Senior Vice President

Intrepid Potash-New Mexico, LLC,			BASS OWNERS:
a New Mexico limited liability company
			BMT O&G NM, L.L.C.
			CTV O&G NM, L.L.C.
			KEYSTONE O&G NM, L.L.C.
By:	/s/ Martin D. Litt		RMB O&G NM, L.L.C.
			FINE LINE O&G NM, L.L.C.
Its: Executive Vice President & General Counsel			THRU LINE O&G NM, L.L.C.
			820MT O&G NM, L.L.C.
Printed Name: Martin D. Litt			LMBI O&G NM, L.L.C.
			SRBI O&G NM, L.L.C.
			SRBMT O&G NM, L.L.C.
			WD O&G NM, L.L.C.
			ARB-LMB PC O&G NM, L.L.C.,
			each a Delaware limited liability company
			By:	/s/ W. Frank McCreight
				W. Frank McCreight
				Vice President of all the above companies

 

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS “[****]”, HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

SECOND AMENDMENT OF
COOPERATIVE DEVELOPMENT AGREEMENT

 

WHEREAS, by that certain Cooperative Development Agreement (the “Agreement”) dated effective February 28, 2011, as amended, between Intrepid Potash, Inc. and Intrepid Potash-New Mexico, LLC (“Intrepid”), on the one hand, and BOPCO, L.P. and the additional Bass owners identified in the Agreement (collectively “Bass”), on the other hand, the Parties agreed, among other things, upon designating certain “drilling islands” within the “Agreement Area” for use by Bass to facilitate its development of the area for oil and gas and Intrepid’s concurrent development of the Agreement Area for potassium or potash; and

 

WHEREAS, by that certain First Amendment of Cooperative Development Agreement between Intrepid and Bass, the parties agreed to an alternate location for [****].

 

WHEREAS, the Bureau of Land Management (“BLM”) has declined to approve the alternate location of [****] and the original location of [****] for environmental reasons; and,

 

WHEREAS, the Parties, pursuant to Section 3.(a)(iv) have agreed upon a second alternate location for [****] and an alternate location for [****].

 

NOW, THEREFORE, in consideration of the premises, the Parties hereby agree to amend the Agreement as follows:

 

[****].

 

Except as amended hereby, the Agreement shall continue in full force and effect according to its terms.

 

IN WITNESS WHEREOF, this Agreement is executed by each Party on the date subscribed to the respective acknowledgments set forth below, but for all purposes effective as of the Effective Date of the Agreement.

INTREPID:			BOPCO:
Intrepid Potash, Inc.,			BOPCO, L.P., a Delaware limited partnership
a Delaware corporation
By:	/s/ Martin D. Litt		By: BOPCO GP, L.L.C., a Delaware limited liability company, general partner
Its: EVP, GC & Secretary			By:	/s/ W. Frank McCreight
				W. Frank McCreight
Printed Name: Martin D. Litt				Senior Vice President

Intrepid Potash-New Mexico, LLC,			BASS OWNERS:
a New Mexico limited liability company
			BMT O&G NM, L.L.C.
			CTV O&G NM, L.L.C.
			KEYSTONE O&G NM, L.L.C.
By:	/s/ Martin D. Litt		RMB O&G NM, L.L.C.
			FINE LINE O&G NM, L.L.C.
Its: EVP, GC & Secretary			THRU LINE O&G NM, L.L.C.
			820MT O&G NM, L.L.C.
Printed Name: Martin D. Litt			LMBI O&G NM, L.L.C.
			SRBI O&G NM, L.L.C.
			SRBMT O&G NM, L.L.C.
			WD O&G NM, L.L.C.
			ARB-LMB PC O&G NM, L.L.C.,
			each a Delaware limited liability company
			By:	/s/ W. Frank McCreight
				W. Frank McCreight
				Vice President of all the above companies

 

 

v3.23.3

Cover	Dec. 12, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Dec. 12, 2023
Entity File Number	001-34025
Entity Registrant Name	Intrepid Potash, Inc.
Entity Central Index Key	0001421461
Entity Tax Identification Number	26-1501877
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	707 17th Street
Entity Address, Address Line Two	Suite 4200
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	296-3006
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	IPI
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

---