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HomeMy WebLinkAbout20191771.tiffINVENTORY OF ITEMS FOR CONSIDERATION Applicant: English Feedlot 2 LLC die Expedition Water Solutions Case Number: USR19-0002 1 -0002 Submitted or Prepared Prior to Hearing At Hearing 1Onshore Letter Rights Kerr-McGee Gathering LLC & Kerr-McGee Oil & Gas of LP - — received 4/16/2019 on AGREEMENT FOR SETTLEMENT OF SURFACE DAMAGES AND GRANT OF RIGHTS AND WAIVERS This Agreement for Settlement of Surface Damages and Grant of Rights and Waivers (t'SDAl is entered into , 2019, by and between Zabka Farms, Inc; ("Surface Owner"), whose address is 617 6th Street, Greeley, Colorado 80631 and Kerr-McGee Oil & Gas Onshore LP ("KMG"), with offices at 1099 18th Street, Suite 1800, Denver/ Colorado 80202, covering certain lands (the "Lands") situated in Weld County, Colorado, described as follows: Township 4 North, Range 67 West of the 6th P.M. Section 15: SW4; more specifically described in a Quit Claim Deed dated April 1, 1990 and recorded on July 17, 1990 at Reception Number 02220308; also identified as Parcel No. 105915000034. NOW, THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Compensation; Release of All Claims KMG shall pay to Surface Owner the sum set forth in that certain Agreement Regarding Compensation between Surface Owner and KMG entered into contemporaneously with this SDA, as full consideration and final settlement and satisfaction for any and all detriment, depreciation, injury or damage of any nature to the Lands or growing crops thereon that may occur as a result of KMG's operations on the Lands, including, but not limited to, KMG's drilling and completion operations, its continuing activities for the production and transportation of oil, gas, other hydrocarbons, water or products associated with such operations and activities, use of the surface of the Lands, ingress, egress, access roads, mud and reserve pits, wellhead equipment, separators, tank batteries, pipelines, gathering lines, flowlines, pipeline interconnections, electrical lines and equipment, data transmission lines and equipment, and any and all other reasonable and customary uses of the Land related to all such operations or activities. 2. Acknowledgement of Right and Easement of KMG Surface Owner acknowledges and understands that KMG, as owner or lessee of the oil and gas estate in the Lands, owns aneasement and right-of-way that burdens the Lands, and that KMG has a continuing right and entitlement to use the surface of the Lands for its operations, including/ but not limited to, access, construction, operation, maintenance, repair and replacement of temporary above -ground water lines and completion fluid lines, subsurface flowlines, gathering lines and other pipelines, data transmission lines, electrical lines and related equipment (both subsurface and above -ground) that may be necessary or convenient to its operations on the Lands; provided, however, KMG agrees that any permanent infrastructure placed on the Lands pursuant to this SDA will accommodate Surface Owner's existing irrigation sprinkler located on the Lands, and if changes or modifications to the irrigation sprinkler are reasonably necessary, KMG will be responsible for the reasonable costs and expenses related to such changes, provided that Surface Owner provides KMG with at least thirty (30) days' prior notice of the necessary changes or modifications.. KMG shall make no modification to the irrigation and/or sprinkler system without the Surface Owner's written consent. 3, ..qr_asto_f_e_kciditional Rights and Easements Surface Owner grants to KMG the following: (i) the right to drill on the Lands oil and gas wells that produce and drain oil, gas and hydrocarbons from lands other than the Lands and to locate, construct, use, and maintain surface equipment related to such wells on the Lands, including, but not limited to, wellheads, associated production equipment, flowlines, compressors and facilities related to transportation of oil and natural gas as generally depicted on Exhibit A; provided, however, Surface Owner acknowledges and agrees that KMG, as owner or lessee of the oil and gas estate in the Lands, owns an easement and right-of-way that burdens the Lands, and that KMG has a continuing right and entitlement to use the surface that may be necessary or convenient for its oil and gas operations on the Lands ; and (ii) the right to locate on the Lands at locations to be determined by KMG temporary above -ground water lines, temporary above -ground completion fluid lines, completions equipment, and any additional equipment related to the completion of wells on other lands; and (iii) the right to locate on the Lands at locations to be determined by KMG an easement and right of way for above -ground and subsurface utilities for use related to operations on the Lands and other lands. Surface Owner agrees that the easement and right-of-way will be on the form attached to this SDA and labeled Attachment 1. 4. Subsurface Easement Upon request of KMG or its successor and assigns, Surface Owner agrees to execute, acknowledge and deliver to KMG and its successor and assigns separate subsurface easement on the form attached to this SDA and labeled Attachment 2. 5. Access Permit and Authorization Forms Upon request of KMG or its successors and assigns, Surface Owner agrees to execute, acknowledge and deliver to KMG and its successors and assigns all authorizations and permits, and all applications for authorizations and permits, required by any regulatory or governmental agency in connection with KMG's access to its operations on the Property. 6. Pipeline Easement and Right -of -Way Surface Owner agrees to negotiate in good faith with Kerr-McGee Gathering LLC, an affiliate of KMG, or another third party gatherer designated by KMG, the location of an easement and right-of-way on the Lands for the construction, use, maintenance, and replacement of pipelines for the transportation of hydrocarbons and water from the Lands and other lands, and associated electric power lines, data transmission lines and equipment. Surface Owner agrees that the pipeline easement and right-of-way will be on the form attached to this SDA and labeled Attachment 3. 7. Waivers Surface Owner, for itself and its successors and assigns, hereby waives the right to, and covenants not to, protest or object to the use of the surface of the Lands by KMG as provided in this SDA. Furthermore/ Surface Owner and its successors and assigns will provide KMG and its successors and assigns with all written waivers and other evidence of support KMG may reasonably require to obtain permits from the Colorado Oil and Gas Conservation Commission ("COGCC") or any local jurisdiction. As provided in COGCC Rule 318A or any successor rule or amendment adopted by the COGCC, or in any rule or ordinance of a local jurisdiction, relating to the location of wells within the Greater Wattenberg Area (GWA), Surface Owner hereby consents to, and waives its right to protest or object to surface well locations that are outside of designated GWA windows and surface well locations that are more than fifty (50) feet from an existing well. Surface Owner waives the reclamation timing requirement in COGCC Rule 1003.b. until KMG has completed all drilling and completion operations on the Lands. Surface Owner further understands and acknowledges that COGCC rules and regulations govern the distance between a wellhead and public roads, production facilities, buildings, building units and surface property lines, among other things. To the fullest extent possible, Surface Owner hereby waives all setback, consultation and notification requirements in COGCC Rules 305, 306, 603 and 604 and any successor rules or amendments, including Exception Zone setbacks and any other state or local setback requirements or other laws, requirements or regulations that would prohibit or interfere with the rights of KMG to explore for and produce oil and gas from the Lands and to locate wells and production facilities anywhere on the Lands. Owner further agrees not to object to the location of wells and production facilities on the Lands on the basis of setback requirements in the noted COGCC rules and regulations and any state or local setback requirement. Surface Owner acknowledges that KMG and its successors and assigns may cite the waivers in this SDA in order to obtain exceptions and variances from the COGCC or from any other state or local body having jurisdiction over oil and gas operations. Surface Owner agrees that this SDA satisfies any requirement for a consent to an exception or variance signed by the surface owner, Building Unit Owner (as that term is defined in the COGCC Rules and any successor rules or amendments), homeowner or the like and agrees that KMG and its successors and assigns may provide a copy of this SDA to the COGCC or to any other state or local body in satisfaction of such requirement. Surface Owner agrees to execute and deliver to KMG and its successor and assigns all consents and waivers requested, including waivers required from Building Unit Owners, homeowners and the like. S. Limitation of Liability, Release and Indemnity a. Notwithstanding anything to the contrary in this SDA, except in connection with any losses incurred by third parties for which indemnification is sought under the terms of this SDA, no Party or any of its affiliates shall be entitled to consequential, special, indirect, punitive or exemplary damages, or damages for loss of profits or loss of business opportunities, in connection with this WA, and/ except as otherwise provided in this sentence, each Party, for itself and on behalf of its affiliates, officers, directors, employees, agents and successors and assigns hereby expressly waives any right to consequential, special, indirect, punitive or exemplary damages in connection with this SDA. b. Except as to claims arising from pollution or environmental damage (which claims are governed by Section 9) or from breach of other provisions of this SDA (which claims shall be governed by the terms of this SDA), each Party shall be and remain responsible for its own liability for all losses, claims, damages, demands, suits, causes of action, fines, penalties, expenses and liabilities, including, without limitation, attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), to the extent caused by such Party's operations on the Lands, no matter when asserted. Each Party shall release, defend and indemnify the other Party, its affiliates, officers, directors, employees, agents, successors and assigns, against all such Claims. This provision does not, and shall not be construed to, create any rights in persons or entities not a party, to this SDA (except as provided in the preceding sentence), nor does it create any separate rights in the Parties to this SDA, other than the right to be indemnified for Claims as provided herein. c. Upon the assignment or conveyance of a Party's entire interest in the Lands, the Party shall be released from its indemnification obligations pursuant to this SDA for all activities or occurrences after such assignment or conveyance. 9. Environmental Indemnities The provisions of Section 8, except for Section 8a, shall not apply to any environmental matters, which shall be governed exclusively by the following, subject to the limitations of Section 8a: a. "Environmental Claims" means all Claims asserted by governmental bodies or other third parties for pollution or environmental damage of any kind, arising from operations on or ownership of the Lands or ownership of the oil and gas leasehold interests, and all cleanup and remediation costs, fines and penalties associated therewith, including but not limited to, any Claims arising from Environmental Laws or relating to asbestos or to naturally occurring radioactive material. Environmental Claims do not include the costs of any remediation undertaken voluntarily by a Party, unless such remediation is performed under the imminent threat of a Claim by a governmental body or other third party. b. "Environmental Laws" means any laws, regulations, rules, ordinances, or order of any governmental authority, which relate to or otherwise impose liability,obligation, or standards with respect to pollution or the protection of the environment, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§ 6901 et seq.), the Clean Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Material Transportation Act (49 U.S.C. §§ 1801 et seq.) and the Clean Air Act and the Toxic Substances Control Act (15 U.S.C. §§ 2601-2629). c. KMG agrees to indemnify, defend and save Surface Owner harmless from and against all liability (including reasonable attorney's fees) for Environmental Claims relating to the Lands to the extent caused by the negligent act or negligent omission of KMG or its employees or agents or contractors in the conduct of oil and gas operations on the Lands. d. Surface Owner and its successors and assigns agrees to indemnify, defend and save KMG harmless from and against all liability (including reasonable attorney's fees) for Environmental Claims relating to the Lands to the extent caused by the negligent act or negligent omission of Surface Owner or its employees or agents or contractors with respect to their activities on the Lands. 10. Exclusion from Indemnities The indemnities of the Parties in this SDA shall not cover or include any amounts which the indemnified Party is actually reimbursed by any third party. The indemnities in this SDA shall not relieve either Party from any obligations to third parties. 11. Notice of Claim for Indemnification If a Claim is asserted against a Party for which the other Party would be liable under the provisions of Sections 8 or 9, it is a condition precedent to the indemnifying Party's obligations hereunder that the indemnified Party give the indemnifying Party written notice of such Claim setting forth all particulars of the Claim, as known by the indemnified Party, including a copy of the Claim(if it is a written Claim). The indemnified Party shall make a good faith effort to notify the indemnifying Party within five days of receipt of a Claim and shall effect such notice in all events within such time as will allow the indemnifying Party to defend against such Claim. 12. Assignment KMG may assign this SDA in whole or in part. 13. Binding Agreement The terms of this SDA shall constitute covenants running with the [and and shall be binding upon the heirs, executors, administrators, successors, and assigns of the parties hereto. 14. Counterpart Signatures This SDA may be executed in any number of counterparts, each of which shall be deemed an original instrument but all of which together shall constitute one and the same instrument. 15. Authority to Execute Surface Owner represents and warrants that he/she/they have the authority to execute this SDA in the capacity stated below. 16. Severability If a court of competent jurisdiction determines that any clause or provision of this SDA is void, illegal, unenforceable or unconscionable under any present or future law (or interpretation thereof), the remainder of this SDA shall remain in full force and effect, and the clauses or provisions that are determined to be void, illegal, unenforceable, or unconscionable shall be deemed severed from this SDA► as if this SDA had been executed with the invalid provisions eliminated; provided, however, that notwithstanding the foregoing, if the removal of such provisions destroys the legitimate purposes of this SDA, then this SDA, shall no longer be of any force or effect. The Parties shall negotiate in good faith for any required modifications to this SDA► required as a result of this provision. In the event that any part of this SDA would otherwise be unenforceable or in conflict with applicable lawsdue to the term or period for which such part is in effect, the term or period for which such part of this SDA shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 17. Recording KMG may record this SDA or a Memorandum of this SDA with the Clerk and Recorder of the County in which the Property is located. The undersigned have executed this SDA on the date first above written. Surface Owner By: Name: Duane Zabka Title: President STATE OF (J3L0RKPO COUNTY OF WELD 1%4 ) )ss KerreMcGee Oil & Gas Onshore LP By: Name: Christo. er P. Martin Title: Land Manager ACKNOWLEDGEMENTS The foregoing instrument was acknowledged before me this Er day of APRIL- 20t by NW*: D --Dra Witness my hand and official seal. BRENDA BREICKLER NOTARY PUBLIC - STATE OF COLS Notary Identification #20164036763 My Commission Expires 9/2212020 STATE OF COLORADO )ss CITY AND COUNTY OF DENVER Riztakt--- Notary Public My commission expires q )9; 2A 9n This instrument was acknowledged before me this &day of \\ 20n, bye , s WSW:1/4as Agent and Attorney -in -Fact for Kerr-McGee Oil & Gas Onshore LP, on behalf of said limited partnership. Witness my hand and official seal. EMMA FRANCESCA VANN0V NOTARY PUBLIC - STATE OF COLORADO Notary ID #201940030E7 My Commission Expires 1/23/2023 P Notary Public My commission expires I Ic) 3/ Thc7Th MM13�A�Fl1�lNOV? 018\20IQ_}39.2.10K&F M5J414 R67V SEC,_ 51DM MIMI ARMS civic, ](14/1019 113524 Ptil, Owe" PRELIMINARY LOCATION DRAWING ZABKA FARMS SW1/4 SECTION 15, TOWNSHIP 4 NORTH, RANGE 67 WEST, 6TH P.M. LEGEND O • f x x EXISTING WELL PROPOSED WELL WATER WELL EXISTING FENCE PUBLIC ROAD PRIVATE ROAD MPO R ■ '17'tit r "1r l ..rtiut:'ttli'. ;'4. r;;;114 r ,- 91412,-1...9. . ,.�y .�-,4 .1.1. 1 '[ti. :1.: ..,t• ,-. •J. .\" �.' ,r v .4 '. f.T l�,y.y..:..;,ryt+�c�-rr�r :-.._;--resi-rt.fli2y�.{�.n •Y.v. •.a4- e4.k .�,. r- -n 51- + •z�,,,., ., .. •{ : N�S....•a...4 %�'s..V.l•G; .X•Y'-i.A„aCt `;h :•'• i -a{�Rr�-.4. iY}t ',F`•tull it• v.:'.yy`�^- • r-..,. 7“" JFy I. V. {'•17.1717.44'• �4aa•{-womrw•wyz . x -..\{ ,L+Y{r.. -.. .'n.. �.-••-v .i'Lr.: �/' .r Y 1Mp _a' Star r, OIL AND GAS OPERATIONS AREA PROPOSED FACILITY EXISTING PIPELINE DITCH/CANAL/DRAINAGE PROPOSED ROAD PIPELINE PROPOSED c. 4,., e. OVERHEAD POWER LINE -tiFiwtsmew PROPOSED ELECTRIC -, ..lir•si EXISTING FACILITY EXISTING BUILDINGS Min RESIDENCE/BUILDING UNIT EXISTING COMMERCIAL CONSULTING, LW LOVELAND OFFICE 67% Nub FrthS Ara ta..tiantWalk* ipl7'S3* ?bas ?T4-77&4313 SHERIDAN OFFICE 1033 Wenn= A,naa slr.eib.. Wsks ++Nt AUDI Pfwa+ "07.674-4001 DATE SURVEYED: DATE DRAFTER: REVISED: NIA 12/21/18 CDR 3/14119 DATA SOURCES: • AERIAL COURTESY OF ESRI, INC. WATER WELLS COURTESY OF COLORADO DIVISION OF WATER RESOURCES PREPARED FOR.: Kerr-McGee Oil & Gas Onshore LP. Attachment 1 RECORDING INFORMATION ABOVE GRANT OF EASEMENT (collective known as "Grantor" ),whose address is in consideration of Ten Dollars ($10.00) and other valuable consideration, receipt of which is hereby acknowledged, grants and conveys unto , "GRANTEE", whose address is its successors and assigns, subject to all pre-existing permitted uses, a perpetual easement and the right to construct, operate, maintain, replace, enlarge, reconstruct, improve, inspect, repair and remove electrical and communication facilities for the purpose of transmission or distribution of electricity and appurtenances thereto, as may from time to time be useful to, or required by Grantee, on, over, under, and across the following described property in the County of Weld, State of Colorado to -wit: Easement description as set forth in Exhibit "A" attached hereto and incorporated herein by reference. Those facilities will be overhead, underground and / or at grade and may include, but not be limited to, poles, cables, conduits, wire, conductors, transformers, manholes and supports of whatever materials, including braces, guides, and other fixtures or devices used or useful in connection therewith. Grantee shall have the right of ingress and egress over and across the lands of the Grantor to and from the above described property, and the right to clear and keep cleared all trees and obstructions as may be necessary. The right and authority of Grantee hereunder may be exercised by its successors, assigns, licensees, contractors and permitees. Grantor reserves the right to occupy, use, and landscape said easement for all purposes not inconsistent with the rights granted to Grantee so long as said use does not damage or interfere with the Grantee's facilities or the maintenance, repair and replacement thereof. After the date of this Grant of Easement, Grantor shall not install permanent structures or facilities of any kind on, over, under, or across said easement without the written approval of Grantee.. Grantee shall pay Grantor for any damages to fences, crops, landscaping and personal property caused by the construction and maintenance of Grantee's facilities. Upon completion of construction, Grantee shall restore the surface of Grantor's property as nearly as practicable to the same condition that existed prior to construction. SIGNED AND SEALED BY GRANTOR this day of , 20 GRANTOR ******************************************* STATE OF )ss COUNTY OF The foregoing instrument was acknowledged before me this day of by witness my hand and official seal. My commission expires _ Notary Public EXHIBIT "A" This Exhibit "A" attached to and made part of that certain Grant of Easement dated the _ day of , 20 by and between 5 whose address is , as "Grantor and whose address is , as "Grantee" in and for the new easement described below. INTENTIONALLY LEFT BLANK An as -built survey will be completed by a professional land surveyor and placed in this space prior to the document being recorded with the County Clerk. Attachment 2 SUBSURFACE EASEMENT AGREEMENT This SUBSURFACE EASEMENT AGREEMENT (this "Agreement') dated and effective , 20 (the "Effective Date") is from ("Surface Owner"), having an address of to ("Grantee"), having an address of ,and its successors and assigns. RECITALS A. Surface Owner owns all of the right, title and interest in and to the surface estate described as follows: Township North, Range west of the 6th P.M. Section : (the "Property")_ B. Surface Owner intends by this Agreement to grant a perpetual subsurface easement to drill through the Property as provided herein. NOW THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties wee as follows: 1. Grant of Subsurface Easement Surface Owner hereby grants and conveys to Grantee, its successors and assigns, a perpetual subsurface easement under and through the Property for the placement of wellbores through the Property for the purposes of drilling, completing and producing the wells. 2. Assignment The rights granted herein may be assigned in whole or in part, and the terms, conditions, and provisions of this Grant are a covenant running with the land and shall extendto and be binding upon the successors and assigns of Surface Owner and Grantee. 3. Memorandum Grantee or its successors and assigns may, but shall not be required to, record a memorandum showing the location of the subsurface easement under and through the Property. 4. Counterparts This Agreement may be executed in counterparts each of which shall be considered one and the same agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day first written above. By: By:_ Name: Title: Name: Title: ACKNOWLEDGMENTS STATE OF COUNTY OF The foregoing instrument was acknowledged before me this day of 20 , by • Witness my hand and official seal. STATE OF COUNTY OF ) )ss. Notary Public My Commission Expires: The foregoing instrument was acknowledged before me this day of 2o_, by Witness my hand and official seal. Notary Public My Commission Expires: Attachment 3 RIGHT-OF-WAY GRANT THIS RIGHT-OF-WAY GRANT ("Grant") is made this day of , , 20 , from _ , whose address is ("Grantor"), whether one or more), to , whose address is ("Grantee"). The parties agree as follows: For and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby grants, conveys and warrants unto Grantee, its successors and assigns, a perpetual right-of-way and easement to survey, construct, maintain, inspect, operate, repair, replace, modify, change the size of, reconstruct, mark, monitor, abandon, remove or relocate and release,, at. Grantee's election, one or more pipelines, electric power lines, data transmission lines and equipment, and ail appurtenances, below and/or above ground, necessary or convenient for the transportation or transmission of oil, gas, petroleum products, water, electricity, electronic data, hydrocarbons and any other substances, whether electronic, fluid, solid or gaseous, and any products, derivatives, combinations or mixtures of any of the foregoing, in, on, over, under, or through the lands situated in County, state ofColorado, being described as follows: TOWNSHIP , RANGE WEST, 6TH PM SECTION The route and course of the right-of-way and easement conveyed hereby ("Right -of -Way Lands") are more particularly described on Exhibit "A" attached hereto and made a part hereof. The parties have agreed that the width of the Right -of -Way Lands shall be seventy five feet (75') during construction, and subsequent to construction the width of the Right -of -Way Lands shall be fifty feet (50') as more particularly described on Exhibit "A". Furthermore, the Right -of -Way Lands shaft also include the area where the production facility (or facilities), as defined by the Colorado Oil and Gas Conservation Commission, ("Production Facility"). it is agreed that the pipeline(s) and any associated appurtenances may be constructed anywhere within the Production Facility. If there is a deviation in the Right -of -Way Lands as constructed, then Grantor agrees that upon request from Grantee the parties will execute a Notice of Pipeline Location along with an as -built survey plat to amend the description of the Right -of -Way Lands. After the initial construction of the pipeline(s) Grantee may require, from time to time, temporary additional work space parallel and adjacent to the Right -of -Way Lands to survey, construct, maintain, inspect, operate, repair, alter, replace, modify, change the size of, reconstruct, mark, monitor, abandon or remove the pipeline(s) together with all appurtenances. Grantor agrees to negotiate in good faith with Grantee to allow Grantee the use of this temporary additional work space. Grantor represents and warrants to Grantee that Grantor is the sole owner in fee simple of the Right -of -Way Lands, subject to the burden of the Right -of -Way and has full right, power and authority to enter into this Grant. Any pipelines and/or appurtenances to be constructed underground pursuant to this Grant shall be placed at a depth of not less than 36 inches below the surface of the ground. Grantor agrees not to increase or decrease the surface elevation on the Right -of -Way Lands without Grantee's prior written permission. Grantee shall repair and/or restore any fence on or adjacent to the Right -of -Way Lands removed or severed by Grantee in the course of the operations provided for in this Grant to the condition such fence was in prior to the removal by Grantee. If n ecessary to prevent the escape of Grantor's livestock, Grantee shall construct temporary gates o r fences in those areas affected by Grantee's operations as provided for in this Grant. Grantee shall level and restore any lands affected by Grantee's operations that may have excessive settling and sufficiently compact the soil within a reasonable period of time after completion of construction to the condition that existed at the time immediately prior to the placement of Grantee's pipeline(s), to the extent reasonably practicable. Grantor agrees not to build, create, construct or permit to be built, created or constructed, any obstruction, building, fence, reservoir, engineering works or other structures or improvements over, under, on or across the Right -of -Way Lands without the prior written consent of Grantee. Grantee shall have all rights, privileges and benefits necessary or convenient for the full use and enjoyment of this Grant, including but not limited to, the right of ingress and egress over and across Grantor's lands lying adjacent to the Right -of -Way Lands for any and all purposes n ecessary and incidental to exercising Grantee's rights hereunder. Grantor hereby agrees that Grantee may, at its option, pay and discharge any taxes, mortgages or liens existing, levied or assessed on or against the lands burdened by the Right -of -Way. If Grantee exercises such option, Grantee shall be subrogated to the rights of the party to whom payment is made, and in addition to its other rights, may reimburse itself out of any rentals, [royalties, shut-in royalties], or any other amounts otherwise payable to Grantor hereunder. Grantee shall be obligated to pay for, repair, replace or otherwise compensate Grantor for any damages resulting from Grantee's activities and operations on the Right -of -Way Lands, except for any damage to structures or improvements placed in the Right -of -Way Lands contrary to the terms contained herein. Grantor shall have the right to use and enjoy the Lands, subject to the rights herein granted. Grantee shall pay for, reimburse, indemnify and hold Grantor harmless from all claims and damages caused by Grantee's operations on the Right -of -Way Lands. Grantor shall pay for, reimburse, indemnify and hold Grantee harmless from all claims or damages caused by Grantor's operations on the Right -of -Way Lands. As between the Parties, neither Party shall be obligated to apy the punitive or consequential damages of the other Party respecting any matter arising under or in connecting with this Grant. This Grant cannot be modified, except by an instrument in writing signed by Grantor and an authorized representative of Grantee. The rights granted herein may be assigned in whole or in part, and the terms, conditions, and provisions of this Grant are a covenant running with the land and shall extend to and be binding upon the successors, and assigns of Grantor and Grantee. KMGG shall record an original of this Right -of -Way Grant in the records of the County in which the Right -of -Way Lands are located. By recording this Right -of -Way Grant, Grantee shall be deemed to have accepted all of the terms and conditions hereof. This Grant may be executed in counterparts each of which shall be considered one and the same agreement. IN WITNESS WHEREOF, Grantor has executed and delivered this Right -of -Way Grant as of the date first above written. GRANTOR(S): BY: STATE OF SS. COUNTY OF The foregoing instrument was acknowledged before me this day of , 20 by Witness my hand and official Seal. My Commission Expires: Notary Public: EXHIBIT "A" This Exhibit "A" attached to and made part of that certain Right -of -Way Grant dated the day of , 2a, by and between ("Grantor,"), and , as "Grantee" in and for the Right -of -Way Lands described below. INTENTIONAL' LEFT BLr4►►NK An as -built survey will be completed by a professional land surveyor and placed in this space prior to the document being recorded with the County Clerk. Hello