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HomeMy WebLinkAboutContract 39718C�Ty SECRETARY' �oNTRACT NO. aa SETTLEMENT AND RELEASE AGREEMENT This Settlement and Release Agreement (the "Settlement Agreement") is made this 'day of , 204by and between the CITY OF FORT WORTH, a home rule municipal corporation of the State of Texas located within Tarrant, Denton, and Wise Counties, Texas (hereinafter referred to as y") acting by and thfough its duly authorized Assistant City Manager, and CHESAPEAKE OPERATING, INC., an Oklahoma corporation, (hereinafter referred to as "Chesapeake"), and a producer of natural gas and a wholly -owned subsidiary of Chesapeake Energy Corporation RECITALS WHEREAS, Chesapeake Operating, lne. operates two gas well sites in southwest Fort Worth known as the Sabre site located northeast of the Risinger Road and Hulen Street intersection and the Peaceful site generally located southeast of the Sycamore School Road and Crowley Road intersection, both sites being located in Council District 6; and WHEREAS, in August 2008, contractors working for Chesapeake clear cut both sites removing a total of 231 trees (60 on the Sabre site and 171 on the Peaceful site) in violation of the City's Tree Ordinance No. 1722840-2006; and WHEREAS, per the ordinance, the calculation for the penalty for removal of trees on both sites totaled $419,200.00 and demand was made on Chesapeake in September, 2008 for payment of the penalties, WHEREAS, Chesapeake disputed the violation and arrived at a different conclusion than the City; and WHEREAS, to forever settle claims regarding the tree removal penalties due the City for these two sites, Chesapeake Energy proposes that they plant 490 trees in 18 medians, provide irrigation and maintenance and guarantee the survival of the trees for two years in lieu of payment into the tree fund; and City of Fort Worth Settlement and Release Agreement 7 OFFICIAL, RECORD CITY SECRETARY FT. WORTH, TX WHEREAS, the City and Chesapeake now desire to conclude, settle, release and discharge once and forever, all rights, claims, causes of actions, liabilities, disputes and demands relating to the City's claims for penalties due the City from Chesapeake for illegal tree removal on the Sabre and Peaceful well sites; NOW THEREFORE, in consideration of the foregoing, and in consideration of the mutual promises and obligations hereinafter set forth, and for good and valuable mutual consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Settlement Agreement hereto agree as follows: AGREEMENT 1. SETTLEMENT TERMS The City and Chesapeake have agreed that Chesapeake shall plant and maintain 400 canopy and 90 ornamental trees in 18 medians, provide irrigation in 18 medians and guarantee the survival of all the trees for two years in full settlement of past claims regarding violations of the City's Tree Ordinance on the Sabre and Peaceful gas well sites. The trees shall be planted, irrigated and maintained, as outlined in Exhibit "A", attached and incorporated into this Agreement for all purposes, on the following medians: West Risinger 1 median between Brewer Boulevard and Summer Creek Drive 3 medians east of Summer Creek Drive Summer Creek Drive 1 fikture median between West Risinger and Quail Feather Drive 1 future median between Quail Feather Road and Summer Park Drive 2 medians between Summer Park Drive and Wildflower Way 2 medians between Wildflower Way and Columbus Trail 1 median between Columbus Trail and Sycamore School Road 1 median between Sycamore School Road and Meadow Valley 2 medians between Meadow Valley Road and Appalachian Way 2 medians between Appalachian Way and Alta Mesa Boulevard Sycamore School Road 1 median east of Summer Creek Drive 1 median west of Summer Creek Drive City of Fora worth 2 Settlement and Release Agreement Subject to delay caused by City, Chesapeake agrees to complete the planting of the trees per this Agreement within seventy-five (75) days after receipt of the executed Settlement Agreement ftom the City and in compliance with Exhibit "B" hereby made a part of this Agreement for all purposes. It is expressly understood and agreed that the Settlement Amount represents -Rill and complete satisfaction and compromise of any and all claims, actions, causes of action, controversies, demands, damages, debts, agreements, obligations, liabilities, interest, liens, expenses, costs, attorney's fees and demands of any kind or nature, known or unknown, arising out of or in any way related to the City's claims for violation of the City's Tree Ordinance on the Sabre and Peaceful gas well sites in August, 2008. Notwithstanding any provision of this Settlement Agreement, the parties hereby acknowledge and agree that any future violations of the Tree Ordinance on either site may be recovered by the City in accordance with applicable City ordinances. The total amount of the design, contingencies, landscape and construction of the irrigation shall be $378,136.00. If for any reason the total costs of the design, contingencies, landscape and the construction of the irrigation as outlined in Exhibit "A" is less than $378,136.00, the remaining balance shall be paid into the City's tree fund or used for additional tree plantings at the discretion and approval of the City. Within thirty (30) days of the execution of this agreement, Chesapeake shall deliver three {3) copies of the final design plans to the City. Chesapeake shall not begin work until the final design plans have been approved by the City. 2. RELEASE OF CLAIMS For the consideration set forth in this Settlement Agreement, the City does hereby release and forever discharge Chesapeake, and its parents, subsidiaries, related affiliates and their respective officers, directors, shareholders, owners, partners, employees, agents, contractors, representatives, predecessors, successors, assigns, insurers and attorneys, and each of them, from any and all claims, demands, actions, causes of action, liabilities, obligations, losses, accounts, debts, damages, judgments, costs, interest, expenses, attorney's fees and demands of any kind or nature, known or unknown, arising out of or in any way related to the City's claim for penalties arising out of violation of the City's Tree Ordinance on the Sabre and Peaceful gas well sites in August, 2008. Furthermore, the City expressly agrees that this settlement, and/or the events City of Fort Worth 3 settlement and Release Agreement leading up to it, including the dispute with respect to the payment of fees, may not be used in any way in any subsequent judicial or administrative proceeding against Chesapeake other than to enforce the terms of this Settlement Agreement. 3. VOLUNTARY AGREEMENT This Settlement Agreement is fieely and voluntarily given by each party, without any .duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all of the terms and provisions of this Settlement Agreement. It is understood and agreed by the City and Chesapeake that nothing herein shall be deemed to be an admission of liability by Chesapeake with respect to the matter of this Settlement Agreement. 4. AUTHORITY AND BINDING EFFECT City and Chesapeake represent and warrant to the other that each has the legal right, power and authority to enter into this Settlement Agreement and to perform its obligations hereunder, This Settlement Agreement will inure to the benefit of and be binding upon the parties and their respective successors and assigns. The parties for themselves and their respective successors and assigns agree to join in or execute any instruments and to do any other act or thing necessary or proper to carry into effect this or any part of this Settlement Agreement. 5. ENTIRE AGREEMENT This Settlement Agreement sets forth the entire agreement between the City and Chesapeake relating to the subject matter of this Settlement Agreement. 6. GOVERNING LAW This Settlement Agreement, and any controversies arising hereunder, shall be interpreted in accordance with the laws of the State of Texas and adjudicated in a state or federal court of competent jurisdiction located in the State of Texas. IN WITNESS �4'IIEREOF, the parties have executed this Settlement Agreement as their free and voluntary acts and deeds, effective as of the date first above written. city oPrort worn 4 Settlement find Release Agreement CITY OF FORT WORTH, TEXAS ASSISTANT 0 STATE OF TI;XA� ATTORNEY C�,, 1(�"1 �15 ����D� CHESAPEAKE OPERATING, INC By: Henry J. Hoo ` Senior Vice President -Land and Legal & General Counsel �e>t�d�ria�, pity Secretary COUNTY OF TARRANT ���, l D /� �I3.t On thep��day of�f�/(/lJI�i2 , 20Q�, before me personally appeared /16f1�U�l� L,D�� and executed this Settlement and Relea Agreement on behalf of the City of Fat Worth. �� i � Given under my hand and official seal this Z �► day of,�a�rU�. , 20Q>� My commission expires: STATC OF OKLAHOMA COUNTY OF OKI,AHOMA On the I� day of Notary Public �rQ.wYP°e;�- EVONIA —� *, ' . DANIELS ;,�.�,�,; MY COMMISSION EXPIRES (U 209�9, before me personally appeared Henry J, Hood, rat Counsel and executed this Settlement and Release Agreement on behalf of Chesapeake Operating, Iuc, (� �' i�; Given under my hand and ofFcial seal this � L' day of JU�'� Uvl-[�.`4'�' , 20g9. �� �gBIE F i��i�/ �`� •••'"�NOT;q•••:��� �'�.� Notary Public �� �' �' Cophn}�s�sion eXl#i"r��? 0 cn EXp ��3�0,4 _ _ —� 5 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX SECTION 1. DUTIES AND RESPONSIBILITIES 1.01 CHESAPEAKE OPERATING, INC, shall commence and provide such services in aeeordauce with this Agreement and its attachments and all applicable laws. In providing such services, CHESAPEAKE OPERATING, INC. shall take such steps, as are appropriate to ensure that the work involved is properly coordinated with any related work performed by the City. 1.02 Any work by CHESAPEAKE OPERATING, 1NC. prior to approval by the City may be ordered stopped at the discretion of the City and subject to removal and replacement by the CHESAPEAKE OPERATING, INC.. 1.03--CHESAPEAKR OPERATING, INC. represents that it has or will secure, at its own expense, all materials, supplies, machinery, equipment, tools, superintendence, labor, personnel, insurance, and other accessories and services necessary to provide the following improvements to the Sabre and Peaceful gas well sites ("Area"): a. Install and maintain for a hvo year period as further described herein all planting material in the Area in accordance with the plans proposed by CHESAPEAKE OPERATING, INC, and as approved by the City. b. Install, maintain, and operate underground irrigation systems and irrigation system additions in accordance with the plans proposed by CHESAPEAKE OPERATING, INC. and as approved by the City. All irrigation systems and system additions shall be installed by a licensed irrigator, approved by the City. Upon installation, the irrigation systems will become the property of the City, but shall be entirely maintained by CHESAPEAKE OPERATING, INC, during the term of this Agreement. c. As required, CHESAPEAKE OPERATING, INC. shall adhere to the Parks and Community Services Department's "Water Conservation/Rationing Procedures". CHESAPEAKE OPERATING, INC. shall supply the City with an irrigation plan not less than 30 days prior to construction. d. CHESAPEAKE OPERATING, INC, will provide, at its own expense, all materials, equipment, and labor necessary to provide water to said trees. e. Chesapeake Operating, Inc. agrees to provide a minimum of 7 gallons of water per caliper inch per week throughout the growing season as needed. The watering is to continue for two years. f. Chesapeake Operating, Inc, agrees that the trees are and will remain the property of the City. g. In the event any City owned property such as utilities, equipment, turf, etc. are damaged or destroyed during watering or maintenance of the planting due to the negligence or acts of omission of Chesapeake Operating, Inc., Chesapeake Operating, Inc, will be responsible for the cost of repair or replacement. h, h•rigation systems shall not run during wet and rainy weather nor shall they be in operation during freezing temperatures. i. Pay for all electrical hookups, electricity, water impact, water tap/meter fees, and water. j. Collect and properly dispose of all trash, garbage, litter, and debris related to the CHESAPEAKE OPERATING, INC. scope of services under this Agreement. 1.04 In the event that any City -owned property, such as utilities, park development improvements, equipment, turf, etc., are damaged or destroyed during installation, watering, or maintenance of the landscape improvements one to negligence or acts of omissions of the CHESAPEAKE OPERATING, City of Fort Worth % Settlement and Release Agreement INC., the CHESAPEAKE OPERATING, INC, shall be solely responsible for all repairs or replacements, In the event of damage due to acts of the CHESAPEAKE OPERATING, INC., the CHESAPEAKE OPERATING, INC. shall replace or repair the damage at no cost to the City. The City shall determine whether any damage has been done, the amount of the damage, the reasonable costs of repairing the damage, and whether the CHESAPEAKE OPERATING, INC. is responsible. The City shall be the sole judge of the damage to the premises, in which judgment shall be exercised reasonably. Any damage by the CHESAPEAKE OPERATING, INC. shall be repaired or replaced by the CHESAPEAKE OPERATING, INC. to the reasonable satisfaction of the City within thirty days of receipt of written notification from the City. - Ors -W LUMV111911 1 1 2.01 CHESAPEAKE OPERATING, INC. shall not make or cause to be made any alterations, additions, or improvements to City property without the prior written consent of the Director, Parks and Community Services Department, CHESAPEAKE OPERATING, INC, shall present to the Director pInns and specifications for such alterations, additions, and improvements at the time such approval is sought. 2.02 All alterations, additions, and improvements to City property made with the written consent of the Director, Parks and Community Services Department shall, upon completion and acceptance by the City, become the property of the City. CHESAPEAKE OPERATING, INC. may be required to remove, at its expense, any alterations, additions, or improvements not meeting specifications as approved by the City. S)1CTION 3. RIGHT OF ACCESS 3.01 City does not relinquish the right to control the management of the Area, or the right to enforce all necessary and proper rules for the tanagement and operation of the same. City through its Manager, Parks and Community Services Director, police and fire personnel, and other designated representatives, has the right at any time to enter any portion of the Area (without causing or constituting a termination of the use or an interference of the use of the Area by the CHESAPEAKE OPERATING, INC.) for the purpose of inspecting and maintaining the same and doing any and all activities necessary for the proper conduct and operation of public property; provided this shall not authorize or empower City to direct the activities of the CHESAPEAKE OPERATING, INC. or assume liability for CHESAPEAKE OPERATING, INC. activities. 3.02 The City reserves the right to modify or remove any improvements made by the CHESAPEAKE OPERATING, INC. as determined necessary by the Director of Pat•ks and Community Services should any of the following occur, a. The CHESAPEAKE OPERATING, INC. ceases to maintain the Area according to this Agreement. b. The Area becomes a hazard to the general public. c, The City determines in its sole discretion that another beneficial use for the area exists, to include, but not limited to, street relocation, street realignment, and the installation of any public utilities or improvements. d. The City determines in its sole discretion, to make use of the area for the installation of any public utilities or improvements. City ofFori Worth $ Settlement and Release Agrecmcnt SECTION 4. IlVDEMNWICATION 4.O1 CHESAPEAKE OPERATING, INC, AGREES TO DEFEND, INDEMNIFY, AND HOLD THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES HARMLESSAGAINSTANYANO ALL CLAIMS, LAWSUITS, ACTIONS, COSTS, AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTYDAMAGE OR LOSS (INCLUD)7GALLEGED DAMAGE OR LOSS TO OWNER'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i) CHESAPEAKE OPERATING, I1VC.'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCOND UCT OF THE CHESAPEAKE OPERATING, INC., ITS OFFICERS, AGENTS, ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR SUBCONTRACTORS, RELATED TO INSTALLATION AND MAINTENANCE OF IMPROVEMENTS IN OR TO THE MEDIANS AND RIGHTS -OF -WAY LOC4TED WITHIN THE AREA OR THE PERFORMANCE OF THIS AGREEMENT EXCEPT THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL NOT APPLY TO ANY LIABILITY RESULTING FROM THE SOLE NEGLIGENCE OR TRONGFUL WILL ACTS OF THE CITY OR ITS OFFICERS, AGENTS, EMPLOYEES, OR SEPARATE CONTRACTORS, AND IN - THE EVENT OF JOINT AND CONCURRENT NEGLIGENCE OR WRONGFUL, WILLFUL ACTS OF BOTH THE CHESAPEAKE OPERATING, INC. AND CITY OR ITS OFFICERS, AGENTS, EMPLOYEES, OR SEPARATE CONTRACTORS, RESPONSIBILITY, IF ANY, SHALLBEAPPORTIONED COMPARATIVELYINACCORDANCE WITHTHELAWSOFTHESTATE OF TEXAS, 4.02 CHESAPEAKE OPERATING, INC. covenants and agrees that City shall in no way nor under any circumstances be responsible for any property belonging to CHESAPEAKE OPERATING, INC., its members, employees, agents, contractors, subcontractors, invitees, licensees, or trespassers, which maybe stolen, destroyed, or in any way damaged, and CHESAPEAKE OPERATING, INC. hereby indemnifies and holds harmless City from and against any and all such claims. The City does not guarantee police protection and will not be liable for any loss or damage sustained by CHESAPEAKE OPERATING, INC., its members, employees, agents, contractors, subcontractors, invitees, licensees, or trespassers on any of the premises. 4.03 It is further agreed that the acceptance of this Release shall not constitute a waiver by the City of Fort Worth of any defense of governmental inununity, where applicable, or any other defense recognized by the Statutes and Court decisions of this State, SECTION 5. INSURANCE 5.01 CHESAPEAKE OPERATING, INC, shall not commence work under this Agreement until it has obtained all the insurance required and the City has approved such insurance. CHESAPEAKE OPERATING, INC. shall be responsible for delivering to the City the CHESAPEAKE OPERATING, INC. certificate of insurance for approval. CHESAPEAKE OPERATING, INC, shall indicate on the certificate of insurance whether or not its insurance covers contractors or subcontractors. The insurance coverage required herein shall include the coverage of all subcontractors, or such subcontractors shall provide to CHESAPEAKE OPERATING, INC, documentation of insurance reasonably equivalent to that required of the CHESAPEAKE OPERATING, INC., according to the liability exposures related to the subcontractors services and/or materials. City ofFort 1Vorth 9 Settlement and Release Agreement A. Commercial General Liability bisurance: The CHESAPEAKE OPERATING, INC, shall procure and maintain a commercial general liability insurance policy in the amount not less than $1,000,000.00 covering each occurrence. 13. Worker's Compensation Insurance: If the CHESAPEAKE OPERATING, INC. will utilize employees to perform work within the term and scope of this Agreement, then it shall maintain statutory Workers Compensation Insurance on all of its employees engaged in work under this Agreement. C. Automobile Insurance: The CHESAPEAKE OPERATING, INC. shall procure and maintain a comprehensive bodily injury and property damage automobile liability policy in the amount not less than $500,000.00 for each accident. This policy shall cover any automobile used within the scope of this Agreement. 5.02 The insurance specified in S.O1. hereof shall comply with the following requirements: a. The City of Fort WortIr, it's Officers, Employees, and Volunteers shall be uanred as Additional brsureds. Exception: The additional insured requirement does not apply to Workers' Compensation policies. b. Thirty (30) day notice of cancellation or non -renewal. c. Wavier of rights of recovery (subrogation) in favor of the City of Fort Worth. d. The insurers for all policies must be Iicensed/approved to do business in the State of Texas. All insurers must have a minimum rating of A: VII in the current A. M. Best Key Rating Guide or have reasonably equivalent financial strength and solvency to the satisfaction of the City of Fort Worth Risk Management. If the rating is below that required, written approval of the City of Fort Worth Risk Management is required. e. If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow the form of the primary coverage. All insurance coverage requirements above may be met by a combination of self-insurance, primary and excess insurance policies. £ Unless otherwise stated, all required insurance shall be written on an "occurrence basis". If coverage is underwritten on a claims -made basis, the retroactive date shall be coincident with or prior to the date of this Agreement and the certificate of insurance shall state that the coverage is clalins-made and the retroactive date. The insurance coverage shall be maintained for the duration of this Agreement. An annual certificate of insurance submitted to the City shall provide evidence of such insurance coverage. g. The deductible or self -insured retention (SIR) affecting required insurance coverage shall be acceptable to and approved in writing by the Risk Manager of the City of Fort Worth in regards to asset value and stockholders` equity. In lieu of traditional insurance, alternative coverage maintained through insurance pools or risk retention groups, must also approved by the Risk Manager of the City of Fort Worth. h. The City, at its sole discretion, reserves the right to review the insurance requirements and to make reasonable adjustments to insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decision or the claims history of the industry as well as of the contracting party to the City of Fort Worth, The City shall be required to provide prior written notice of ninety (90) days. i. The City shall be entitled, upon request and without expense, to receive copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modifications of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law or regulations binding upon either party or the underwriter on any such policies. Ciry of Fort worth I � Settlement and Release Agrecmc�t SECTION 6, CHARITABLE ORGANIZATION 6.01 CHESAPEAKE OPERATING, INC, agrees that if it is a charitable organization, corporation, entity or individual enterprise having, claiming or entitled to any immunity, exemption (statutory or otherwise) or limitation from and against liability for damage or injury to property or persons under the provisions of the Charitable Immunity and Liability .Act of 1987, C.P.R.C., § 84,001 et seq., or other applicable law, that CHESAPEAKE OPERATING, INC, hereby expressly waives its right to assert or plead defensively any such immunity or limitation of liability as against City. If applicable, CHESAPEAKE OPERATING, INC. annually shall submit proof of 501(c)(3) eligibility to the City. SECTION 7. INDEPENDENT CONTRACTOR 7.01 CHESAPEAKE OPERATING, INC, shall perform all work and services hereunder as an independent contractor, and not as an officer, agent, servant or employee of the City. CHESAPEAKE OPERATING, INC, shall have exclusive control of, and the exclusive right to control the details of the work performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, agents, employees and subconsultants (or subeo>atractors). Nothing herein shall be construed as creating a partnership or joint venture between the City and CHESAPEAKE OPERATING, INC., its officers, agents, employees and subconsultants (or subcontractors), and doctrine of respondent superior has no application as between the City and CHESAPEAKE OPERATING, INC.. SECTION 8. LICENSES AND PERMITS 8.01 CHESAPEAKE OPERATING, INC. shall comply with al] federal, state, and local laws, rules, and regulations, as well as with all regulations, restrictions, and requirements of tite police, fire, and health departments now or hereafter in effect which are applicable to its operations. CHESAPEAKE DPERATING, INC. shaft obtain and keep in effect at its own cost and expense all licenses and permits, and pay all taxes incurred or required in connection with this Agreement and its operations hereunder. SECTION 9. LIENS 9.01 The CHESAPEAKE OPERATING, INC. agrees not to take any action that would result in the creation of any lien on City property. In the event that a lien is filed, as a result of any action of the CHESAPEAKE OPERATING, INC., the CHESAPEAKE OPERATING, INC. will take all necessary steps to bond around or remove the lien within 10 days of its filing. SECTION 10, NOTICES 10.01 Any notice required shall be sufficient if deposited in the U.S. Mail, postage prepaid, certified mail, return receipt requested, and addressed to the o#her party as follows: CITY: City of Fort Worth Parks and Community Services Director 4200 South Freeway, Suite 2200 Fort Worth, Texas 76115 City of Fort Worth 11 Settlement and Release Agreemenf CHESAPEAKE OPERATING, INC.: Ken Thompson Manager —Field, Barnett Shale 6100 N. Western Ave. Oklahoma City, OK 73118 With copy to: Assistant City Attorney 1000 Throckmorton Street Fort Worth, Texas 76102 J, Ray Oujesky, Senior Attorney Chesapeake Energy Corporation 100 Energy Way Fort Worth, Texas 76102 10.Q2 Mailing of ail notices pursuant to this Section shall be deemed sufficient if mailed postage prepaid, certified mail, return receipt requested, and addressed as specified above, unless either party has been notified in writing of any changes to such address(es) or addressee(s). All time periods related to any notice requirements specified in this Agreement shall commence on the date notice is mailed. SECTION 11. SUBLETTING, ASSIGNING, MORTGAGING 11.01 CHESAPEAKE OPERATING, INC, agrees that it will not subcontract or assign all or any part of its rights, privileges or duties hereunder without the prior written consent of the Director, Parks and Community Services Department, and any attempted subcontract or assignment of same without such prior consent of the Director, Parks and Community Services Department, shall be void. Consent shall not be unreasonably withheld. 11.02 Subject to the limitations contained herein, the covenants, conditions, and agreements made and entered into by the parties hereunder are declared to be for the benefit of and binding on their respective successors, representatives, and permitted assigns, if any. SECTION 12. WAIVER, SECTION HEADINGS, AND SEV)ERABILITY 12.01 It is agreed that in the event any covenatt, condition, or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of such covenant, condition or provision shall in no way affect any other covenant, condition, or provision herein contained, provided however, that the invalidity of any such covenant, condition, or provision does not materially prejudice either CHESAPEAKE OPERATING, INC. or City in connection with the rights and obligations contained in the valid covenants, conditions, or provisions of this Agreement. 12,02. The waiver by the City of any default or breach of a term, covenant, or condition of this Agreement shall not be deemed to be a waiver of any other breach of that term, covenant or condition or any other term, covenant, or condition of this Agreement, regardless of when the breach occurred. 12.03 The headings in this Agreement are inserted for reference only, and shall not define or limit the provisions hereof• , CHE' SAPEATM, O G, INC By: ti Henry J. Hood Senior Vice President — Land and Legal & General Counsel city of Fort Worth 12 Settlement and Release Agreement