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HomeMy WebLinkAboutContract 32413 CITY SECRETARY CONTRACT NO. 4/3 ROAD REPAIR AGREEMENT BETWEEN THE CITY OF FORT WORTH AND Xto GNGizo J�-dG This Road Repair Agreement, (Agreement), is made and entered into on this the 6TT day of 4Ag 200.5, by and between the City of Fort Worth, Texas ("City"), a home rule municipal corporation of the State of Texas, located within Tarrant, Denton, Wise Counties, Texas (Hereinafter referred to as the "City") and X10 ENE G—Y P SNL ("Operator") for the repair of certain streets and/or roadways within the Clity of Fort Worth, Texas as more fully described herein. WHEREAS, Operator is in the business of drilling gas wells and, in connection therewith, shall be engaged in drilling and production activities on property known generally as , Ju&-r-7-1� Aty-E2 LEPK. _, which abuts, is adjacent to, and/or is accessed by roadways within the City of Fort Worth; and WHEREAS, use of the roadways by the Operator for the purpose of performing the activities described hereinabove may cause damage to the roadways;and WHEREAS, the City and Operator, for the mutual consideration hereinafter stated, desire to enter into this Agreement for Operator to repair said roadways for the duration of the term of this Agreement in consideration of Operator's use of said roadways for the purpose of the activities described hereinabove; IT IS NOW THEREFORE AGREED THAT: ARTICLE 1. REPAIR OBLIGATION 1. Operator shall repair damages caused by Operator or its contractors, subcontractors, employees, and agents, excluding ordinary wear and tear, if any, to roadways that abut the above- described property being used by Operator for the drilling and production of gas wells pursuant to a Gas Well Permit issued to Operator. The repair obligation shall continue even if the Gas Well Permit is amended to allow for the drilling of additional gas wells. This obligation shall continue during the term of this Agreement, and Operator shall, prior to the termination of this Agreement, as provided herein, repair such damages to such roadways, excluding ordinary wear and tear, if any, to the condition in which such roadways existed prior to the execution of this Agreement. Operator shall make a videotape of such roadways prior to the start of Operator drilling and operation of its gas wells and shall provide a copy of the videotape to the Director of Transportation and Public Works. Operator shall notify the Director of Transportation and Public Works when drilling or fracing operations are complete so that the Director of Transportation and Public Works can determine if repairs are required. 2. In connection with its obligation to repair said roadways, Operator shall use materials of the same or better quality than those utilized to surface and/or repair the roadways prior to execution of this Agreement and in accordance with the current standards specifications of the City. Deviation from the materials described herein shall not be permitted without the prior written consent of the Director of Transportation and Public Works. Repairs shall be completed in accordance with standard engineering practices acceptable to the City. 3. Operator shall repair the damage to the roadways at its sole cost and expense. 4. During the term of this Agreement, Operator shall periodically inspect the roadways during drilling, fracture stimulation or reworking of the gas well to determine whether or not any damage has occurred as a result of Operator's activities. Immediately upon discovering the existence of any such damage to the roadways, Operator shall undertake to repair and/or remedy same. Upon discovery of damage by the Operator, the Operator will have 48 hours to contact the Director of Transportation and Public Works to work out a schedule of repairs. Repairs shall take place within 30 days or immediately if the damage affects the immediate health and safety of individuals. ARTICLE 2. TERM OF AGREEMENT This Agreement shall commence upon the date indicated above and shall continue in full force and effect until Operator has completed and/or permanently discontinued the activities upon the roadways, as described hereinabove. ARTICLE 3. INSURANCE AND INDEMNITY The Operator shall provide or cause to be provided the insurance described below for each well unless a Gas Well Permit has been issued wherein such insurance has been provided for the issuance of the Gas Well Permit under the terms and conditions described in the Fort Worth "Gas Drilling and Production" Ordinance and such insurance to continue until the well is abandoned and the site restored. In addition to the bond or letter of credit required pursuant to this Agreement and the Fort Worth "Gas Drilling and Production" ordinance, the Operator shall carry a policy or policies of insurance issued by an insurance company or companies authorized to do business in Texas. In the event such insurance policy or policies are cancelled, the Gas Well Permit shall be suspended on such date of cancellation and the Operator's right to operate under such Gas Well Permit shall immediately cease until the Operator files additional insurance as provided herein. 1. General Requirements applicable to all policies. a. The City, its officials, employees, agents and officers shall be endorsed as an "Additional Insured" to all policies except Employers Liability coverage under the Operator's Workers Compensation policy. b. All policies shall be written on an occurrence basis except for Environmental Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella Liability,which may be on a claims-made basis. Page 2 "�� 1"_•.-.� ,:�''�'_ ��- C. All policies shall be written by an insurer with an A-: VIII or better rating by the most current version of the A. M. Best Key Rating Guide or with such other financially sound insurance carriers acceptable to the City. d. Deductibles shall be listed on the Certificate of Insurance and shall be on a "per occurrence" basis unless otherwise stipulated herein. e. Certificates of Insurance shall be delivered to the City of Fort Worth, Development Department, 1000 Throckmorton Street, Fort worth, Texas 76102, evidencing all the required coverages, including endorsements, prior to the issuance of a Gas Well Permit. f. All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the City. g. Any failure on part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement specified herein. h. Each policy shall be endorsed to provide the City a minimum thirty-day notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten days notice shall be acceptable in the event of non-payment of premium. i. During the term of the Gas Well Permit,the Operator shall report, in a timely manner, to the Gas Inspector any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss. j. Upon request,certified copies of all insurance policies shall be furnished to the City. 2. Standard Commercial General Liability Policy. This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors protective liability and personal injury.This coverage shall be a minimum Combined Single Limit of$1,000,000 per occurrence for Bodily Injury and Property Damage. 3. Excess or Umbrella Liability $ 5,000,000 Excess, if the Operator has a stand-alone Environmental Pollution Liability(EPL)policy. $10,000,000 Excess, if the Operator does not have a stand-alone EPL policy. Coverage must include an endorsement for sudden or accidental pollution. If Seepage and Pollution coverage is written on a "claims made" basis, the Operator must maintain continuous coverage and purchase Extended Coverage Period Insurance when necessary. 4. Workers Compensation and Employers Liability Insurance a. Workers Compensation benefits shall be Texas Statutory Limits. b. Employers Liability shall be a minimum of$500,000 per accident. C. Such coverage shall include a waiver of subrogation in favor of the City and provide coverage in accordance with applicable State and Federal laws. 5. Automobile Liability Insurance a. Combined Single Limit of$1,000,000 per occurrence for Bodily Injury and Property Damage. b. Coverage must include all owned,hired and not-owned automobiles. �f 11SL . : 1i Page 3 J:3 w 6. Certificates of Insurance a. The company must be admitted or approved to do business in the State of Texas, unless the coverage is written by a Surplus Lines insurer. b. The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas State Board of Insurance or ISO, or an equivalent policy form acceptable to the City. C. Sets forth all endorsements and insurance coverage according to requirements and instructions contained herein. d. Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the City. All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED" e. Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance. 7. The cancellation of any insurance for the sole purpose of the repair of roadways will not release the obligation of the Operator to meet all requirements of insurance and bonding under the Fort Worth"Gas Drilling and Production"Ordinance. 8. Operator shall and hereby does indemnify, defend and save harmless the City, its officers, agents and employees from all suits, actions or claims of any character, name and description brought for or on account of any injuries or damages received as sustained by any person, persons or property on account of the operations of the Operator, its agents, employees, contractors or subcontractors; or on account of any negligent act of fault of the Operator, its agents, employees, contractors or subcontractors in connection with the obligations under this Road Repair Agreement; and shall pay any judgment, with costs, which may be obtained against the City growing out of such injury or damage. ARTICLE 4. PERFORMANCE BONDS 1. Operator shall provide a performance bond, unless a performance bond has been provided for the issuance of a Gas Well Permit under the terms and conditions described in Fort Worth "Gas Drilling and Production"ordinance, in an amount not less than the amount necessary to repair the roadways, as determined by the City Director of Transportation and Public Works. 2. Prior to the beginning of any activity pursuant to the issuance of a Gas Well Permit, unless a performance bond has been provided for the issuance of a Gas Well Permit under the terms and conditions described in the Fort Worth "Gas Drilling and Production" Ordinance, Operator shall provide the Gas Inspector with a security instrument in the form of a bond or an irrevocable letter of credit as follows: Page 4 a. Bond. A bond shall be executed by a reliable bonding or insurance institution authorized to do business in Texas, acceptable to the City. The bond shall become effective on or before the date the Gas Well Permit is issued and shall remain in force and effect for at least a period of six (6) months after the expiration of the Gas Well Permit term or until the well is plugged and abandoned and the site is restored, whichever occurs first. The Operator shall be listed as principal and the instrument shall run to the City, as obligee, and shall be conditioned that the Operator will comply with the terms and regulations of this Ordinance and the City. The original bond shall be submitted to the Director of Transportation and Public Works with a copy of the same provided to the City Secretary and the Gas Inspector. b. Letter of Credit. A letter of credit shall be issued by a reliable bank authorized to do business in Texas and shall become effective on or before the date the Gas Well Permit is issued. The letter of credit shall remain in force and effect for at least a period of six (6) months after the expiration of the Gas Well Permit term. The City shall be authorized to draw upon such letter of credit to recover any fines or penalties assessed under this ordinance. Evidence of the execution of a letter of credit shall be submitted to the Director of Transportation and Public Works submitting an original signed letter of credit from the banking institution, with a copy of the same provided to the City Secretary and the Gas Inspector. If the Letter of Credit is for a time period less than the life of the well as required by Ordinance Number 14880, A j D agrees to either renew the Letter of Credit or replace the Letter of Credit with a bond in the amount required by the City of Fort Worth Ordinance Number 14880, on or before 45 days prior to the expiration date of the Letter of Credit. If )(TO fails to deliver to the City of Fort Worth either the renewal Letter of Credit or replacement bond in the appropriate amount on or before 45 days prior to the expiration date of the Letter of Credit, the City of Fort Worth may draw the entire face amount of the attached Letter of Credit to be held by the City of Fort Worth as security for X'`D 's performance of its obligations under Ordinance Number 14880. C. Whenever the Gas Inspector or the Director of Transportation and Public Works Department finds that a default has occurred in the performance of any requirement or condition imposed by this Agreement, a written notice shall be given to Operator. Such notice shall specify the work to be done, the estimated cost and the period of time deemed by the Gas Inspector or the Director of Transportation and Public works Department to be reasonably necessary for the completion of such work. After receipt of such notice, the Operator shall, within the time therein specified, either cause or require the work to be performed, or failing to do so, shall pay over to the City one hundred twenty-five percent (125%)of the estimated cost of doing the work as set forth in the notice. d. The City shall be authorized to draw against any irrevocable letter of credit or bond to recover such amount due from Operator. Upon receipt of such monies, the City shall proceed by such mode as deemed convenient to cause the required work to be performed and completed, but no liability shall be incurred other than for the expenditure of said sum in hand.. e. In the event Operator does not cause the work to be performed and fails or refuses to pay over to the City the estimated cost of the work to be done as set forth in the notice, or Page 5 the issuer of the security instrument refuses to honor any draft by the City against the applicable irrevocable letter of credit or bond the City may proceed to obtain compliance and abate the default by way of civil action against Operator, or by criminal action against the Operator,or by both such methods. f. The cancellation of any bond or letter of credit for the sole purpose of the repair of roadways will not release the obligation of the Operator to meet all requirements of insurance and bonding under the Fort Worth"Gas Drilling and Production" Ordinance. Any bond required by the Fort Worth"Gas Drilling and Production" Ordinance shall stay in full force and effect until the terms and conditions set out in the Ordinance are met. 3. If the cost of the completing the repair is an amount of $15,000 or less, as determined by the Director of Transportation and Public Works, cash in the amount necessary to complete the repairs, as determined by the Director of Transportation and Public Works, may be deposited with a bank or escrow agent pursuant to an escrow agreement acceptable and approved by the City ensuring completion of the repair. ARTICLE 5 MISCELLANEOUS PROVISIONS 1. Operator understands and agrees that Operator, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the City. The City shall not have any control over the means or methods by which Operator shall perform its obligations hereunder. Operator shall furnish all equipment and materials necessary to perform hereunder and shall at all times be acting as an independent Operator. 2. By entering into this Agreement, the City does not waive, nor shall it be deemed to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. 3. This Agreement represents the entire agreement between Operator and City for repair of roadways and supersedes all prior negotiations, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the governing body of the City or those authorized to sign on behalf of the City's governing body. ARTICLE 6. FORCE MMEURE Events of Force Majeure shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, government or de facto government action (unless caused by acts or omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns or work stoppages. Page 6 - ARTICLE 7. ASSIGNABILITY/CONSENT Except as otherwise provided herein, or except as may be hereafter determined by the parties, no party to this Agreement may sell, assign, or transfer its interest in this Agreement, or any of its right, duties, or obligations hereunder, without the prior written consent of the other party. Whenever the consent or the approval of a party is required herein, such party shall not unreasonably withhold, delay, or deny such consent or approval. Operator may assign this Agreement to any successor entity to whom the applicable Gas Well Permit has been assigned upon written notice to the City of said assignment. ARTICLE 8. NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be by personal delivery; sent by registered mail or certified mail; or by United States Mail, return receipt requested,postage prepaid; to: CITY: Office of the City Manager City of Fort Worth,Texas 1000 Throckmorton Street Fort Worth, Texas 76102 OPERATOR XI-0 ENEIMY Zft3C.. Tof, ST. Vjo it ()oz Notice shall be deemed to have been received on the date of receipt as shown on the return receipt or other written evidence of receipt. ARTICLE 9. MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE 10. SAVINGS/SEVERABILITY In the event that any one or more of the provisions hereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not effect the other provisions, and the Agreement shall be Page 7 construed as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. ARTICLE 11. GOVERNING LAW AND VENUE This Agreement shall be construed under and governed by,and in accordance with the laws of the State of Texas,and venue for any action arising under the terms and conditions of this Agreement shall lie in the state courts located in Tarrant County,Texas or the United States District Court for the Northern District of Texas,Fort Worth Division. ARTICLE 12. ENTIRE AGREEMENT This Agreement and the exhibits attached hereto, constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. No amendment, modification, cancellation or alteration of the terms of this Agreement shall be binding on any party hereto unless the same is in writing, dated subsequent to the date hereof, and is duly authorized and executed by the parties hereto. ARTICLE 13. WAIVER OF TERMS AND CONDITIONS The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions,but the same shall be and remain at all times in full force and effect. ARTICLE 14. CAPTIONS The captions contained in this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. ARTICLE 15. COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,and constitute one and the same instrument. Page 8 1 T HIM"" I I IN WITNESS WHEREOF, arti s do bereby affix their signatures and enter into this Agreement as of the day o 11A 20 651 . ATTEST: CITY OF FORT WORTH t Y) By: City Secretary Assi t City ger NO M&C REQUIRED i Director of 15 velopment I I APPROVED AS TO FORM 1 AND LEGALITY: I Assistant City Attorney Operator STATE OF TEXAS § COUNTY OF TARRANT § I Before me, the undersigned notary public,on this day personally appeared Dale Fisseler, the j Assistant City Manager of the City of Fort Worth, Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the instrument for the purposes and consideration therein expressed. I Given under my hand and seal of office this Z(h day of 204'. Notary Public KATHY F.DURHAM _� . MY COMMISSION EXPIRES 'r,pf January 24,2009 N., Page 9 tl ! , I v ITi 2 C, I +I", V i i t i STATE OF /EX�S § COUNTYOF r § Before me, the undersi ed authority, a Ngtary Public in and for the State of Texas, on this day personally appeared 17/M /1'�-`=LW A I N , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of 'p F_t 26- LN L (the corporation) and that he executed the same as the act of said X Tb E I)E 21-1 TM L (corporation) for the purposes and consideration therein expressed and in the capacity therein stated. i Given under my hand and seal of office this (��day of 20(15 -MCIi Notary P blic I I �,r,, 'IA J. MAGNAN N tw Public * STATE OF TEXAS ' r QM >;I.02/27/ i i 1 i I 1 I 4 I , 1 I t ! Page 10 i travelersop Y INCREASE CERTIFICATE Bond No.: 104300866 -t 21-6 Principal: XTO Energy Inc License No. 810 Houston Street, Amount of Bond: 5150,000.00 Fort Worth,TX 76102 Hereby increased to: $400,000.00 Obligee: City of Fort Worth,Texas 1000 Throckmorton Street, Fort Worth,TX 76102 As of July 27, 2005,the amount of the above described bond is increased fram the sum of S150,000.00 to the sum of 5400,000.00,but the liability of the Surety for any acts or defaults occurring before the effective date hereof shall in no event exceed the total sum of S150,000.00, and the aggregate liability of the Surety for any acts or defaults, whenever committed, shall in no event exceed the total sum of 5400,000.00, it being the intent hereof to preclude cumulative liability: This certificate,when signed by the Principal shall become a part of the said bond. Signed, sealed and dated July 27, 2005. , Travelers Casualty and Surety Company of America By Teresa Godsey Attorney-in-Fact I hereby consent to the above increase. Witness my hand and seal this 27th day of July,2005. (Seal) Principal INSTRUCTIONS TO AGENTS - IMPORTANT Do not deliver this certificate to the Obligee until it has been dated and signed by the Principal. One signed copy must be returned to the Surety. F-304-F (11-671 TRA( .:RS CASUALTY AND SURETY COMPAN� kN ER1C.A TRAVELERS CASUALTY AND SURETY COMPANY cc FARM GTON CASUALTY CON[PANY i Hartford, Coonecticut 06183-9062 POWER OF ATTORNEY AND CERTIFICATE OF AUTHORITY OF ATTORNEY(S)-[N-FACT KNOW ALL PERSONS BY THESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, corporations duly organized under the laws of the State of Connecticut, and having their principal offices in the City of Hartford, County of Hartford, State of Connecticut, (hereinafter the "Companies") hath made, constituted and appointed, and do by these presents make, constitute and appoint: Carol Noone, Margaret Henderson, Teresa Godsey, of Fort Worth,Texas, their true and lawful Attorney(s)-in-Fact, with full power and authority hereby conferred to sign, execute and acknowledge, at any place within the United States, the following insvument(s): by his/her sole signature and act, any and all bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking and any and all consents incident thereto not exceeding the sum ofFIVEMILLION(S5.000,000.00) DOLLARS per bond and to bind the Companies, thereby as fully and to the same extent as if the.same were signed by the duly authorized officers of the Companies, and all the acts.of said Attorney(s)-in-Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This appointment is made under and by authority of the following Standing Resolutions of said Companies, which Resolutions are now in full force and effect: VOTED:. That the Chairman, the President, any Vice Chairman,any Executive Vice President,any Senior Vice President,any Vice President,any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys-in-Fact arid Agents to act for and on behalf of the company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances,contracts of indemnity,and other writings obligatory ui the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her. VOTED: That the Chairman, the.President, any Vice Chairman, any Executive Vice President,any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company,provided that each such delegation is in writing and a copy thereof is filed in the office of the Secre VOTED: That any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when(a)signed by the President,any Vice Chairman,any Executive Vice President,any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary,or(b)duly executed(under seal, if requued)by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority. This Power of Attorney and Certificate of Authority is signed and sealed by facsimile (mechanical or printed) under and by authority of the following Standing Resolution voted by the Boards of Directors of TRAVELERS CASUALTY AND SURETY COMPANY:OF` AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY. COMPANY,which Resolution is now in full force and effect: VOTED: That the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating'thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in-the nature thereof,and any such power of attorney or certificate.bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by.such facsimile signature and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. IJV WITNESS WHEREOF, TRAVELERS CASUALTY AND SURETY COMPANY OF 'AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARNICgGTON CASUALTY COMPANY have caused this instrument to be signed by their Senior Vice President and their corporate seals to be hereto affixed this 11th day of June,20 •; j?CA STATE OF CONNECTICUT TRAVELERS CASUALTY AND SURETY COMP O y" TRAVELERS CASUALTY AND SURETY COMPANY }SS. Hartford FARNMGTON CASUALTY COMPANY COUNTY OF HARTFORD p G 4 WRITOM. HAMFORD. - u 1' y 2� o BY OONIL Q y CONN. o = i George W. Thompson Senior Vice President On this 11th day of June_2003. before me personally came GEORGE W. THOMPSON to me known; who, being by me duly sworn, did depose and.say: that he/she is Senior Vice President of TRAVELERS CASUAI:TY AND SURETY COMPANY OF AMERICA, .TRAVELERS CASUALTY. AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, the corporations described in and which executed the above instrument; that he/she knows the seals of said corporations; that the seals affixed to the said instrument are such corporate seals; and that he/she executed the said instrument on behalf of the corporations by authority of his/her office under the Standing Resolutions thereof. �TlT My commission expires June 30, 2006.Notary Public Marie C. Tetreault CERTIFICATE I,. the undersigned, Assistant Secretary of TRAVELERS CASUALTY AND SURETY COKPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, stock corporations of the State of Connecticut, DO HEREBY CERTIFY that the foregoing and attached Power of Attorney and.Certifi-tate of.Authority remains in full force aiid has not been revoked; and furthermore, that the Standing Resolutions of the Boards of Directors, as set forth in the Certificate of Authority,are now in force. Signed and Sealed at the Home Office of the Company, in the City of Hartford, State of Connecticut. Dated this 27th day of July , 2005. i+++l J�J r Sao G�6U� AS HIRTFORq i FORD. l7 19826 p By COMM c GONH' s �D Kari M. Johanson �''• �� �� �`y • ��. Assistant Secretary, Bond 7,1 a crap BLANKET PRODUCTION BOND Bond No. 104300863 KNOW ALL BY THESE PRESENTS: That We, XTO Energy lnc. 810 Houston Street, Suite 200 Ft. Worth,TX 76102, as Principal, and the Travelers Casualty and Surety Company of America, a corporation created, organized and existing under and by virtue of the laws of the State of Connecticut, and duly licensed to transact a general Surety business, in the State of Texas, as Surety, are held and firmly bound unto the City of Fort Worth, Texas in the sum of One Hundred Thousand Dollars and 00/100 Dollars ($100,000.00) lawful money of the United States of America, to be paid to the said City of Fort Worth, Texas for which payment, well and truly to be made, we bind ourselves, our heirs, executors and successors, jointly and severally, firmly by these presents. THE CONDITION OF THE ABOVE OBLIGATION IS SUCH,That Whereas the principal has been granted a permit to operated multiple producing wells within the city limits of Fort Worth,Texas. Now therefore, the condition of this obligation is such that if the principal shall faithfully comply with all the conditions of the City of Fort Worth Ordinance while said wells are in the producing stage then this obligation to be void otherwise to remain in full force and effect. Provided further, that regardless of the number of years this bond shall continue or be continued in force and of the number of premiums that shall be payable or paid, the Surety shall not be liable hereunder for a larger amount in the aggregate, than the amount stated herein. Provided further, that if the Surety shall so elect this bond may be cancelled by the Surety as to subsequent liability by giving thirty(30)days notice in writing to paid obligee. SIGNED, SEALED AND DATED THIS 15th DAY OF April 2004 WITNESS: XTO Energy Inc. By: TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA By: Countersigned By: Teresa Godsey,Attorney-In-Fact Texas Resident Agent