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HomeMy WebLinkAboutContract 29582EXHIBIT "C" SECRETARYCITY CONTRACT No. ROAD REPAIR AGREEMENT BETWEEN THE CITY OF FORT WORTH AND e 0-1 - ki This Road Repair Agreement, (Agreement), is made and entered into on this the 1 ��day Of ,,, " 2004, 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 ,°P4' , / 4 4. c.- ("Operator") for the repair of certain streets and/or roadways within the City 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 411j'(446 e- 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 u$e materials of the same or better quality than those utilized to surface and/ox repair the rAs 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. 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. 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 Umbtella Liability, which may be on a claims -made basis. Page 2 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. Automobile Liability Insurance a. Combined Single Limit of $1,000,000 per occurrence, -for -Bodily Injury and Property Damage. Page 3 ., f b. Coverage must include all owned, hired and not -owned automobiles. 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". P_ 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. 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 o a hond 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, �M 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 C h � 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 C k), e '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.. Page 5 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 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 MAJEURE 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. J`.'uY11 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 Ch' C-1 n " , 6 c -jd 400 em w x " - 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, an the Agr°eetnent- shall be Page 7 f 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. IN WITNESS OF, the prxies., do hereby affix the signatures and enter into this Agreement as of the �qday of �.'`<<r 20 ATTEST: CITY OF FORT WORTH Page 8 J`fN r 1, ,jIl.,°City Secretary APPROVED AS TO FORM AND LEGALITY: David Yett, City Attorney By. a4-1 STATE OF TEXAS § COUNTY OF TARRANT § By: Gaty/kilko, \City Maryn, ager Conl_ra(.,'._ L)atc perator Before me, the undersigned notary public, on this day personally appeared Gary Jackson, the 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. Given under my hand and seal of office this„day-of °w';+� 20 PATSY COX NOTARY PUBLIC State o9 rexas ti .• Nota blic �.•�� �>� r,; ` C;c>�nrn Exp 12-18-2004 rY STATE OF COUNTYOF Before me, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared ;:., , �;� . ,;,; ', r �r , ,� ;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 � a. -/, ;� (the corporation) and that he executed the same as the act of said' '„�� "�—� �����,r,, (corporation) for the purposes and consideration therein exp>essed and in the capacity therein stated. k y' Given under my hand and seal of office this ^�i°��day of ' Zl.L 20�� a of /z Notary Public �tipPY NUd�� CANDICE A. MCENANEY Notary Public, State of Texas My commission Expires September 07, 2007 Page 9- �'� -4 Ch Bond #LPM4138508 CITY OF FORT WORTH, TEXAS GAS DRILLING, PRODUCTION AND ROADWAY MAINTENANCE BLANKET BOND THE STATE OF TEXAS COUNTY OF TARRANT WHEREAS, persons performing gas drilling and production operations within the jurisdiction of the City of Fort Worth, Texas are required to execute and file with the City of Fort Worth Gas Inspector a bond covering those operations, pursuant to § 15-41 of the City of Fort Worth City Code; WHEREAS, the Principal named below is the operator of certain Texas Railroad Commission and City of Fort Worth regulated gas drilling and production operations including but not limited- to, (1) operations permitted under the Principal's permit filed with the City of Fort Worth Gas Inspector, and/or (2) any additional wells that may be permitted prior to the expiration of this bond; WHEREAS, the Principal desires to perform gas operations and activities within the jurisdiction of the City of Fort Worth, and which operations and activities must be carried on in full conformance with all conditions of the ordinances of the City of Fort Worth, including those city ordinances requiring operators to plug and abandon all wells and control, abate, and clean up associated with an operator's gas operations and activities; WHEREAS, Principal acknowledges and agrees that, due to the acquisition of additional wells, it may be required during the effective term of this bond to provide additional financial security beyond the face amount of this bond before additional permits submitted by the Principal will be accepted and approved. We, Chief Oil & Gas L.L.C. (person's name) as Principal, and —Fidelily and Deposit Company of Ma lanry d as Surety, duly authorized and qualified to do business in the State of Texas, are held and firmly bound unto the City of Fort Worth, Texas in the sum of One Hundred Fifty Thousand & No/100 Dollars ($150,000.00) payable at the City of Fort Worth, Tarrant County, Texas, and for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. This bond is conditioned that if the Principal operates all wells in accordance with the ordinances of the City of Fort Worth plugs and abandons all wells and control, abates, and cleans up pollution associated with its gas operations and activities in accordance with the ordinances of the City of Fort Worth and is in full compliance with the all the regulations of the with the ordinances of the City of Fort Worth, the Road Repair Agreement and any permit issued pursuant thereto and shall repair any damages to City streets, as determined by the City's Director of Transportation and Public Works, caused by the equipment and vehicles used by the Operator in going to and from the drill site with such repairs being in compliance with specifications therefore prepared by and provided to the Operator by the Director of Transportation and Public Works; then the Principal and Surety are relieved of their obligation to pay the bond amount to the City of Fort Worth. In the event of a failure of Principal to comply with the conditions and obligations of this bond, the Surety shall promptly remedy such non-compliance, in accordance with the ordinances of the City of Fort Worth within 60 days of notice of non-compliance. In the event of surety's failure to remedy such non-compliance, written demand shall be made upon surety for payment of the penal sum of this bond. Sums demanded under this bond shall be paid to the City of Fort Worth at 1000 Throckmorton Street, Fort Worth, Texas, within thirty days after receipt of written demand for payment, which demand shall be mailed by registered or certified U.S. mail to the address shown below. Conditions and obligations under this bond are construed in accordance with the Road Repair Agreement and all permits, rules, and regulations of the ordinances of the City of Fort Worth, including any amendments thereto that may be made during the term of this bond, and Surety waives notice of any amendments. The City of Fort Worth shall have the right to sue on and otherwise enforce the obligations of this bond without first resorting to or exhausting its remedies against the properties and assets of the Principal. (over) This bond is effective beginning on the 6th day of _August , 2003. The term of this bond shall expire 6 months after the expiration of the Gas Well Permit or when the gas well is plugged and abandoned and the site of the well restored, which ever occurs earlier, provided, however, any claim against this bond maybe brought within one (1) year following the expiration of the Gas Well Permit or the plugging and/or abandonment of the well, whichever occurs first. Obligations to pay part or all of the bond amount are deemed released after one (1) year from the expiration date of the bond if no non-compliant operations or activities subject to the bond have been discovered by the City of Fort Worth or the Texas Railroad Commission during that one-year period, and no enforcement action against any operations or activities subject to the bond is pending. Principal and Surety may also be relieved of their obligations to pay part or all of the bond amount by written agreement between the City of Fort Worth, Principal, and Surety. If the bond amount is not paid in accordance with the terms of this bond and if judgment for any part of the bond amount is awarded through any court proceeding, then the City of Fort Worth shall be entitled to court costs and reasonable attorney's fees awarded by the court. Surety's liability for such costs and fees shall not be limited by the amount of this bond. It is agreed and understood that this bond is executed and performable in Fort Worth, Tarrant County, Texas, and venue for any cause of action construing this bond is in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas. A transfer, by any means, of any well covered under this bond does not relieve the Principal and Surety of any obligation under this bond until the operator acquiring the well has on file with the City of Fort Worth an approved form of financial security covering the well. The transferred well remains covered by this bond and the Principal and Surety remain responsible for compliance with all City of Fort Worth regulations and ordinances covering the transferred well until the City of Fort Worth determines that the well is covered by proper financial security and the acquiring operator has assumed full responsibility for the well in accordance with all city regulations and ordinances. Obligations to pay part, or all, of the bond amount, as a result of the Principal or Surety's non-compliance with the conditions of this bond that occurred prior to the transfer and assumption of responsibility by the acquiring operator, remain enforceable in accordance with the general terms of this bond. IN TESTIMONY WHEREOF, said PRINCIPAL has hereunto subscribed his or her name or has caused this instrument to be signed by its duly authorized officers and its corporate seal to be affixed this 6th day of August 20 03. IN TESTIMONY WHEREOF, said SURETY has caused this instrument to be signed by its duly authorized officers and its corporate seal to be affixed this 6th day of August 20 03. Chief Oil & Gas. L.L.C. PRINCIPAL (seal) By: NAME'& TITL]3 '� Fidelity and Deposit Company of Maryland SURETY (ATTACH POWER OF ATTORNEY) (seal) By: CIJO-� Sandr . Shryck, Attorney -in -Fact 3910 Keswick Road 5"' Floor Baltimore MD 21211 SURETY'S FULL MAILING ADDRESS Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND COLONIAL AMERICAN CASUALTY AND SURETY COMPANY KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, and the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, corporations of theS KO� aryland, by PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary, in pursuance of u�ity� r1 y Article VI, Section 2, of the By -Laws of said Companies, which are set forth on the reverse s' ! here , i fed to be in full force and effect on the date hereof, does hereby nominate, constit f 4i T. POST, Richard K. STONE, Bret S. BURTON, Jana M. FORRES ,i . �� UNE and Tim H. HEFFEL, - o make, execute, seal and deliver, for, and all of Wichita, Kansas, EACH its '��gan iti� on its behalf surety,R�5 t=(,fn �lEC (J7ds arc -undertakings and the execution of such bonds of undertakings in puren mg upon said Companies, as fully and amply, to all intents and as if theyul wledged by the regularly elected officers of the Company at its office purposes, in Baltimore, Md., i is f r e persons. This power of attorney revokes that issued on behalf of W. C. Cohen, Jr., Joseph C. Lukens, H c . Post, Richard K. Stone, Bret S. Burton, Jana M. Forrest, Patricia Brogan, Sandra J. Shryack, Erica M. Plummer, dated July 14, 2000. The said Assistant Secretary does hereby certify that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2, of the By -Laws of said Companies, and is now in force. IN WITNESS WHEREOF, the said Vice -President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seals of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, and the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, this 14th day of March, A.D. 2003. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND COLONIAL AMERICAN CASUALTY AND SURETY COMPANY 'gyp Df P psi f G1�IiI�� SEAL W � 'V PMry'dl� It90 MIM z �'411Ir` .��1 B ` y T. E. Smith Assistant Secretary Paul C. Rogers Vice President State of Marylandss: I City of Baltimore On this 14th day of March, A.D. 2003, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, and the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Companies aforesaid, and that the seals affixed to the preceding instrument is the Corporate Seals of said Companies, and that the said Corporate Seals and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporations. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. Sandra Lynn Mooney Notary Public My Commission Expires: January 1, 2004 POA -F 076-6692A ZURICH THIS IMPORTANT DISCLOSURE NOTICE IS PART OF YOUR BOND We are making the following informational disclosures in compliance with The Ten'orism Risk Insurance Act of 2002. No action is.required on your part. Disclosure of Terrorism Premium The premium charge for risk of loss resulting from acts of terrorism (as defined in the Act) under this bond is waived . This amount is reflected in the total premium for this bond. Disclosure of Availability of Coverage for Terrorism Losses As required by the Terrorism Risk Insurance Act of 2002, we have made available to you coverage for losses resulting, from acts of terrorism (as defined in the Act) with terms, amounts, and limitations that do not differ materially as those for losses arising from events other than acts of terrorism. Disclosure of Federal Share of Insurance Company's Terrorism Losses The Terrorism Risk Insurance Act of 2002 establishes a mechanism by which the United States government will share in insurance connpanylosses resulting from acts of terrorism (as defined in the Act) after a insurance company has paid losses in excess of an annual aggregate deductible. For 2002, the insurance company deductible is 1% of direct earned premium in the prior year; for 2003, 7% of direct earned premium in the prior year; for 2004, 10% of direct earned premium in the prior year; and for 2005, 15% of direct earned premium in the prior year. The federal share of an insurance company's losses above its deductible is 90%. In the event the United States government participates in losses, the United States government may direct insurance companies to collect a terrorism surcharge from policyholders. The Act does not currently provide for insurance industry or United States government participations in terrorism losses thatexceed $100 billion in any one calendar year. Definition of Act of Terrorism The Terrorism Risk Insurance Act defines "act of terrorism" as any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States: 1, to be an act of terrorism; 2. to be a violent act or act that is dangerous to human life, property or infrastructure, 3. to have resulted in damage within the United States, or outside of the United States in the case of an air carrier (as defined in section 40102 of title 49, United 17 States Code) or a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), or the premises of a United States mission; and 4, to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. But, no act shall be certified by the Secretary as an act of terrorism if the act is committed -as pant of the course of a war declared by Congress (except for workers' compensation) or property and casualty insurance losses resulting fiom the act, in the aggregate, do not exceed $5,000,000. These disclosures are informational only and do not modify your bond or affect your rights under the bond. Copyright Zurich American Lrsurance Company 2003 surety Terrorism disclosure norice,doc