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HomeMy WebLinkAboutContract 41594 (2)CITY SECRETARY CONTRACT 4CL fri I 5 � ENCROAC MENT LICENSE AGREEMENT This EN CROAC 1 ' MENT LICENSE AGREEMENT ("agreement") is hereby made and entered into by and between the City of Fort Worth ("City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through its duly authorized City Manager or authorized Assistant City Manager, and Texas Midstream Gas Services, L.L.C., ("Licensee"), an Oklahoma limited liability company acting by and through its duly authorized representative Dave Johns, Manager, Property Rights. RECITALS The following statements are true and correct and constitute the basis upon which the City of Fort Worth has executed the Agreement. A. City has a drainage easement situated in the G. Herrera Survey, Abstract 2027, of Tarrant County, Texas and being more particularly described in Volume 8535, Page 429, of the Official Public Records, Tarrant County, Texas (hereinafter referred to as the "Property"). B. Licensee desires to construct and/or maintain a natural gas pipeline on a portion of the Property (hereinafter referred to as the "Pipeline") as generally depicted in Exhibit "A" attached hereto. C. City has agreed to allow the Pipeline on the Property subject to all of the terms, covenants, and conditions of this Agreement. D. It is understood that the City has an easement interest only in the Property and this Agreement applies only between the City and the Licensee. It is the Licensee's responsibility to secure any other necessary permission from any other public utilities that may be located in the easement and the fee owner of the Property. AGREEMENT In consideration of the foregoing recitals and the covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. GRANT OF LICENSE. 1.1 Subject to the terms and conditions set forth in this Agreement, the City hereby grants Licensee a revocable license (the "License") to encroach upon and occupy a portion of the Property as described in and at the location depicted on Exhibit "A". Nothing herein shall be deemed to allow the Licensee to expand the Pipeline or make any other use of the Property without the express permission of the City. Edgecliff to Crowley Tract: 41.01 OFFICIAL RECORD C`7`Y �SECi��TdttY FT, WORTH, TX 1.2 Licensee agrees and acknowledges that this Agreement is solely for the purpose of permitting Licensee to construct, maintain and locate the Pipeline over or within the described Property and is not a conveyance of any right, title or interest in or to the Property. 2. NONEXCLUSIVE. This Agreement and all rights granted to Licensee herein are strictly nonexclusive. The City reserves the right to enter into and grant other and future licenses and other authorizations for use of the Property to other persons and entities in accordance with applicable law and as the City deems appropriate; provided, however, that as to the grant of subsequent licenses for use of the Property that is solely within the discretion of the City if a dispute arises as to priority of the use of the Property, the City will resolve such dispute in a manner that does not result in unreasonable interference with Licensee's operation of the Pipeline. This Agreement does not establish any priority for the use of the Property by Licensee or by any present or future licensees or other permit holders. In the event of any dispute as to the priority of use of the Property, the first priority shall be to the public generally, the second priority to the City in the perforniance of its various functions, and thereafter, as between licensees and other permit holders, as determined by the City in the exercise of its powers, including the police power and other powers reserved to and conferred on it by the State of Texas. 3. TERM. This Agreement shall become effective on the date as of which both parties have executed it ("Effective Date') and shall expire Twenty (20) years from the Effective Date unless terminated earlier as provided herein. 4. TERMINATION. This Agreement may be terminated in any of the following ways: a. Written agreement by both parties; b. Failure by Licensee to pay any License Fee on or before the respective due date; c. Failure of Licensee to perform its obligations as set forth in this Agreement; d. By City giving Licensee thirty (30) days written notice; e. Failure of the Licensee to complete construction of the Pipeline within one (1) calendar year from the execution of this Agreement Upon such termmnation, Licensee shall forfeit all rights granted to it under this Agreement and, except as to Licensee's unperformed obligations and existing liabilities as of the date of termination, this Agreement shall be automatically deemed null and void and shall have no further force or effect. Licensee shall remain obligated to pay and City shall retain the right to receive license fees and other payments up to the date of termination. Edgecliffto Crowley 2 Tract: 41.01 5. FEES AND PAYMENTS TO CITY. 5.1. License Use Fee. On or prior to the Effective Date, Licensee shall pay the City as compensation for its use of the Property for the Term of this Agreement the sum of Forty-six thousand eight hundred twenty-seven dollars and sixty-eight cents ($46,827.68) ("License Fee') Licensee hereby acknowledges and agrees that the amount of this License Fee is non-refundable and constitutes just and reasonable compensation to the City for Licensee's use of the Property. 5.2. Other Payments. In addition to the License Fee, Licensee shall pay the City all sums which may be due the City for property taxes, license fees, permit fees or other taxes, charges or fees that the City may from time to time impose on all other similarly situated entities within the City. 6. REGULATORY AUTHORITY OF THE CITY; COMPLIANCE BY LICENSEE; ANNUAL REPORTS BY LICENSEE Licensee's property and operations hereunder shall be subject to such regulation by the City as may be reasonabl} necessary for the protection or benefit of the general public. In this connection, Licensee shall be subject to, governed by and shall comply with all applicable federal, state and local laws, including all ordinances, rules and regulations of the City, as same may be adopted and amended from time to time. Licensee understands and agrees that the City Council has authorized execution of this Agreement, in part, on the basis of statements and representations made by Licensee in that certain letter dated January 17 2011 from Harvey Stockman, Barnett Shale Manager — Midstream Operations for Chesapeake Midstream Partners to Ron Gafford, President of the Hallmark -Camelot -Highland Terrace Neighborhood Association, attached hereto as Exhibit "B ', which is hereby made a part of this Agreement for all purposes (the ` TMGS Letter"). Licensee specifically agrees that it will operate, maintain, and inspect the Pipeline in a manner that meets or exceeds applicable state and federal laws, rules, and regulations and that it will, at a minimum, comply with the maintenance requirements set forth in Section 7 of the TMGS Letter. On or before March 1 of each year during the Term of this Agreement, Licensee will provide the director of the City's Planning and Development Department with a written statement, signed by an authorized representative of Licensee and notarized by a duly authorized and licensed notary public, stating that Licensee has complied with all such maintenance requirements during the preceding twelve (12) months If Licensee did not comply with all such maintenance requirements at any time during the preceding twelve (12) months, Licensee shall specify in the notice the nature and extent of such non-compliance, and (i) if an event of non- compliance was fully cured during that time, the steps that Licensee took to effectuate such cure, and (ii) if an event of non-compliance was not fully cured during that time, the Edgechff to Crowley 3 Tract: 41.01 steps that Licensee took to effectuate cure and the remedies that Licensee intends to take to effectuate full cure, as well as an anticipated timeline for cure. 7. USE OF THE PROPERTY. 7.1. Compliance with Laws, Ordinances, Rules and Reeulations. Licensee shall comply with all applicable laws, ordinances, rules and regulations, including, but not limited to, City ordinances, rules and policies related to construction peilnits, construction bonds, penuissible hours of construction, operations during peak traffic hours, barricading requirements and any other construction rules or regulations that may be promulgated from time to time. 7.2. No Undue Burden. The Pipeline shall not be erected, installed, constructed, repaired, replaced or maintained in any manner that places an undue burden on the present or future use of the Property by the City and the public. If the City reasonably deter nines that the Pipeline does place an undue burden on any portion of the Property, Licensee, at Licensee's sole cost and expense and within a reasonable time period specified by the City, shall modify the Pipeline or take other actions determined by the City to be in the public interest to remove or alleviate the burden. 7.3. Minimal Interference. Prior to the undertaking of any kind of construction, installation maintenance, repairs or other work that requires the physical use of the Property, Licensee shall submit all plans and specifications for approval to the Planning and Development Director or duly authorized representative. Licensee shall not commence construction of the Pipeline until such approval shall be indicated in writing by the Director or duly authorized representative. However, such approval shall not relieve Licensee of responsibility and liability for concept, design and computation in preparation of such plans and specifications. 7.3.1. Licensee will operate, maintain and inspect the gas pipeline to a level that meets or exceeds State and Federal requirements. The Licensee will provide an annual statement, using the Effective Date, signed by an authorized representative of the Licensee that it has complied with the maintenance requirements as stipulated. 7.3.2. Licensee shall coordinate and participate in a Preconstruction Meeting with City of Fort Worth staff to evaluate and address any issues or concerns at least seven calendar days prior to the start of construction. Edgecliff to Crowley 4 Tract: 41.01 7.3.3. Pipeline shall be constructed at a minimum depth of five (5') feet below the centerline of the existing creek from station 135+90 to 137+10 to allow for future City drainage channel initiatives. 7.4. City Access to Property. Licensee acknowledges that City may enter and utilize the Property at any time for the purpose of installing, replacing, repairing or maintaining improvements to it public facilities or utilities necessary for the health, safety and welfare of the public or for any other public purpose. City shall bear no responsibility or liability for any damage or disruption or other adverse consequences resulting to Pipeline, but City will make reasonable efforts to minimize such damage. Should it become necessary to remove the Pipeline to install, repair, replace or maintenance improvements to City public facilities or utilities in the Property, the Licensee shall remove the Pipeline at the Licensee's expense The City shall furnish the Licensee with written notice if removal is deemed necessary by the Planning and Development Department Licensee agrees that upon request of City and within thirty (30) days from the date of such request, to relocate the Pipeline away from the Property and to restore the Property to its original condition at the sole cost and expense of the Licensee. 7.5. Emergency Procedures 7.5.1. For purposes of this Section, a public emergency shall be any condition which, in the opinion of the officials specified herein, poses an immediate threat to life, health or property and is caused by any natural or man- made disaster including, but not limited to, storms, floods, fires, accidents, explosion, water main breaks and hazardous materials spills. In the event of a public emergency, the City shall have the right to take whatever action is deemed appropriate by the City Manager, Mayor, Police Chief or Fire Chief, or their authorized representatives, including, but not limited to, action that may result in damage to the Pipeline, and Licensee hereby (i) releases the City, its officers, agents, servants, employees and subcontractors from liability or responsibility for any Damages, as defined in this Agreement, that may occur to the Pipeline or that Licensee may otherwise incur as a result of such a response, and (ii) agrees that Licensee, at Licensee's sole cost and expense, shall be responsible for the repair, relocation or reconstruction of all or any of its Pipeline that is affected by such action of the City. In responding to a public emergency, the City agrees to comply with all local, state and federal laws, including any requirements to notify the Texas One Call System, to the extent that they apply at the time and under the circumstances. In addition, if the City takes any action that it believes will affect the Pipeline, the City will notify Licensee as soon as practicable so that Licensee may advise and work with the City with respect to such action Edgecliff to Crowley 5 Tract: 41.01 7.5.2. The Licensee shall maintain written emergency response plans pursuant to 49 C.F.R. § 192.615, 7.5.3. In the event of an emergency that directly involves that portion of the Pipeline located in the property and necessitates immediate emergency response work or repairs, Licensee may initiate the emergency response work or repairs or take any action required under the circumstances provided that Licensee notifies the City as promptly as possible. After the emergency has passed Licensee shall apply for and obtain any applicable federal state and local permits, as may be adopted and amended from time to time for the emergency work and otherwise fully comply with the requirements of this Agreement. 7.6. As -Built Plans Licensee, at Licensee's sole cost and expense shall provide the City with as -built plans of all portions of the Pipeline located in the City and the City's extraterritorial jurisdiction and maps showing such Pipeline within ninety (90) calendar days following the completion of such Pipeline. Licensee shall supply the textual documentation of such as -built plans and maps in computer format as requested in writing by the City and shall otherwise fully cooperate with the City in ensuring that the Pipeline is accurately reflected in the City's mapping system. 7.7. Specifications The Licensee shall erect, install, construct, repair, replace and maintain the Pipeline and pursuant to the rules and regulations promulgated by the U.S. Department of Transportation, Office of Pipeline Safety, as set out in the Code of Federal Regulations, Section 192 and as adopted and modified by the Texas Railroad Commission. The Pipeline shall not exceed a twenty (24) inch nominal diameter and a right of way width of no more than thirty (30) feet throughout the entire length of the property. 7.8. Marking of Pipeline The Pipeline shall be marked pursuant to the rules and regulations promulgated by the U.S. Department of Transportation, Office of Pipeline Safety, as set out in the Code of Federal Regulations, Section 192 and as adopted and modified by the Texas Railroad Commission, which shall show conspicuously Licensee's name and a toll -free telephone number of Licensee that a person may call for assistance. 7.9. Relocation of Pipeline Within forty-five (45) calendar days following a written request by the City, Licensee, at Licensee s sole cost and expense, shall protect support, disconnect or relocate to another portion of the property all or any portion of its Edgecliff to Crowley 6 Tract: 41.01 Pipeline due to street or other public excavation, construction, repair, grading, re- grading or traffic conditions; the installation of sewers, drains water pipes or municipally -owned facilities of any kind; the vacation, construction or relocation of streets or any other type of structure or improvement of a public agency; any public work; or any other type of improvement necessary, in the City's sole discretion, for the public health, safety or welfare. If Licensee reasonably requires more than forty-five (45) days to comply with the City's written request, it shall notify the City in writing and the City will work in good faith with Licensee to negotiate a workable time frame. 7.10. Removal of Pipeline Upon the revocation, termination or expiration without extension or renewal of this Agreement, Licensee's right to use the Property under this Agreement shall cease and Licensee shall immediately discontinue the transportation of Gas in or through the Property. Within six (6) months following such revocation, termination or expiration and if the City requests, Licensee, at Licensee's sole cost and expense, shall cap and leave the Pipeline in place in accordance with applicable laws and regulations. If Licensee has not capped the Pipeline within six (6) months following revocation, tei ination or expiration of this Agreement the City may deem any portion of the Pipeline remaining in the Property abandoned and, at the City's sole option, (i) take possession of and title to such property or (ii) take any and all legal action necessary to compel Licensee to remove such Pipeline; provided, how. ever that Licensee may not abandon its facilities or discontinue its services within the City without the approval of the Railroad Commission or successor agency or any other regulatory authority with such jurisdiction Within six (6) months following revocation, termination or expiration of this Agreement and in accordance with Section 8 of this Agreement Licensee shall also restore any property, public or private, that is disturbed or damaged by removal (or, if consented to by the City, capping and leaving in place) of the Pipeline If Licensee has not restored all such property within this time, the City, at the City's sole option, may perform or have performed any necessary restoration work, in which case Licensee shall immediately reimburse the City for any and all costs incurred in performing or having performed such restoration work. 8. SURFACE REPAIRS DUE TO LICENSEE ACTIVITY. Licensee at Licensee's sole cost and expense, and in a manner approved by the City, shall promptly restore any portion of the Property that are in any way disturbed or damaged by the construction operation, maintenance or removal of any of the Pipeline at Licensee's option to as good or better a condition as such property was in immediately prior to the disturbance or damage. Licensee shall diligently commence such restoration Edgecliff to Crowley Tract: 41.01 7 within thirty (30) calendar days following the date that Licensee first became aware of the disturbance or damage or, if the Licensed Improvement is being removed, within thirty (30) calendar days following such removal. 9. LIABILITY AND INDEMNIFICATION. 9.1. Liability of Licensee. Licensee shall be liable and responsible for any and all damages, losses, liabilities (joint or several), payments, obligations, penalties, claims, litigation, demands, defenses, judgments, lawsuits, proceedings, costs, disbursements or expenses (including, without limitation, fees, disbursements and reasonable expenses of attorneys, accountants and other professional advisors and of expert witnesses and costs of investigation and preparation) of any kind or nature whatsoever (collectively "Damages") which may arise out of or be in any way connected with (i) the construction installation, operation, maintenance or condition of the Pipeline or any related facilities or appurtenances; (ii)) any claim or lien arising out of work, labor, materials or supplies provided or supplied to Licensee, its contractors or subcontractors or (iii) Licensee's failure to comply with any federal, state or local law, ordinance, rule or regulation, except to the extent directly caused by the negligent or grossly negligent act(s) or omission(s) or intentional misconduct of the City. LICENSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF THE PREMISES UNDER THIS AGREEMENT OR WITH THE USE, MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED SOLELY BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF THE CITY. 9.2 Indemnification. LICENSEE, AT LICENSEE'S SOLE COST AND EXPENSE, SHALL INDEMNIFY AND HOLD HARMLESS THE CITY, ITS OFFICERS, BOARDS, COMMISSIONS, AGENTS, EMPLOYEES AND VOLUNTEERS ("INDEMNITEES'), FROM AND AGAINST ANY AND ALL DAMAGES WHICH MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH (I) THE CONSTRUCTION, INSTALLATION, OPERATION, MAINTENANCE OR CONDITION OF THE PIPELINE OR ANY RELATED FACILITIES OR APPURTENANCES; (II) THE TRANSPORTATION OF GAS THROUGH THE PIPELINE; (III) ANY CLAIM OR LIEN ARISING OUT OF WORK, LABOR, MATERIALS OR SUPPLIES PROVIDED OR SUPPLIED TO Edgecliff to Crowley 8 Tiact. 41.01 LICENSEE, ITS CONTRACTORS OR SUBCONTRACTORS; OR (IV) LICENSEE'S FAILURE TO COMPLY WITH ANY FEDERAL, STATE OR LOCAL LAW, ORDINANCE, RULE OR REGULATION, EXCEPT TO THE EXTENT DIRECTLY CAUSED BY THE NEGLIGENT OR GROSSLY NEGLIGENTACT(S) OR OMISSION(S) OR INTENTIONAL MISCONDUCT OF THE CITY. 9.3 Assumption of Risk and Environmental Remediation. LICENSEE HEREBY REPRESENTS TO THE CITY THAT (i) LICENSEE HAS FULLY INSPECTED THE PREMISES; (ri) LICENSEE IS SATISFIED WITH THE CONDITION OF THE PREMISES; AND (iii) LICENSEE HAS BEEN FULLY ADVISED OF ITS OWN RIGHTS WITHOUT RELIANCE UPON ANY REPRESENTATION MADE BY THE CITY, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, COMMISSIONS, BOARDS OR VOLUNTEERS. LICENSEE HEREBY UNDERTAKES AND ASSUMES, FOR AND ON BEHALF OF LICENSEE, ITS OFFICERS, AGENTS, CONTRACTORS, SUBCONTRACTORS AND EMPLOYEES, ALL RISK OF DANGEROUS CONDITIONS, IF ANY, ON OR ABOUT THE PREMISES. Although to the best of the City's knowledge, the Property comply with all applicable federal, state and local environmental laws and regulations (collectively "Environmental Laws"), the City does not warrant such. LICENSEE HEREBY COVENANTS AND AGREES THAT LICENSEE, AT ITS SOLE COST AND EXPENSE, SHALL BE FULLY RESPONSIBLE FOR THE VIOLATION OF ANY ENVIRONMENTAL LAWS CAUSED, IN WHOLE OR IN PART, BY LICENSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES, AND ANY REMEDIATION THAT MAY BE REQUIRED AS A RESULT OF SUCH VIOLATION, EXCEPT TO THE EXTENT CAUSED BY THE CITY. 9.4. Defense of Indemnitees. In the event any action, lawsuit or other proceeding is brought against any Indemmtee by reason of any matter for which the Indemnitees are indemnified hereunder, the City shall give Licensee prompt written notice of the making of any claim or commencement of any such action, lawsuit or other proceeding, and Licensee, at Licensee's sole cost and expense, shall resist and defend the same with reasonable participation by the City and with legal counsel selected by Licensee and specifically approved by the City. In such an event, Licensee shall not admit liability in any matter on behalf of any Indemnitee without the advance written consent of the City. Edgechff to Crowley 9 Tract: 41.01 10. INSURANCE. Licensee shall procure and maintain at all times in full force and effect, a policy or policies of insurance to provide coverages as specified herein, naming the City as an additional insured and covering all public risks related to the use, occupancy, condition, maintenance, existence or location of the Property and the construction, installation, operation, maintenance or condition of the Pipeline, including the transportation of gas through the Pipeline. The insurance required hereunder may be met by a combination of self-insurance, primary and excess policies. 10.1. Primary Liability Insurance Coverage. a. Commercial General Liability: $1,000,000 per occurrence, including coverage for the following: (i) Premises Liability; (ii) independent contractors; (iii) products/completed operations; (iv) personal injury; (v) contractual liability; (vi) explosion, collapse and underground property damage. b. Property Damage Liability: $10,000,000 per occurrence c. Automobile Liability: $1,000,000 per accident, including, but not limited to, all owned, leased, hired or non -owned motor vehicles used in conjunction with the rights granted under this Agreement d. Worker's Compensation: As required by law; and, Employer's Liability as follows: $1,000,000 per accident. 10.2. Revisions to Required Coverage. At the reasonable recommendation of the City's Risk Manager, the City may at any time revise insurance coverage requirements and limits required by this Agreement. Licensee agrees that within thirty (30) days of receipt of written notice from the City, Licensee will implement all such revisions requested by the City. The policy or policies of insurance shall be endorsed to provide that no material changes in coverage, including, but not limited to, cancellation, termination, non -renewal or amendment, shall be made without thirty (30) days' prior written notice to the City. Edgecliff to Crowley 10 Tract. 41.01 10.3. Underwriters and Certificates. Licensee shall procure and maintain its insurance with underwriters authorized to do business in the State of Texas and who are acceptable to the City in terms of solvency and financial strength. Within thirty (30) days following adoption of this Agreement by the City Council, Licensee shall furnish the City with certificates of insurance signed by the respective companies as proof that it has obtained the types and amounts of insurance coverage required herein. In addition, Licensee shall, on demand, provide the City with evidence that it has maintained such coverage in full force and effect. 10.4. Deductibles. Deductible or self -insured retention limits on any line of coverage required herein shall not exceed $1,000,000 in the annual aggregate unless the limit per occurrence or per line of coverage, or aggregate is otherwise approved by the City. 10.5. No Limitation of Liability. The insurance requirements set forth in this Section and any recovery by the City of any sum by reason of any insurance policy required under this Agreement shall in no way be construed or effected to limit or in any way affect Licensee's liability to the City or other persons as provided by this Agreement or law. 11. LICENSEE AS INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Licensee shall operate as an independent contractor as to all rights and privileges granted by this Agreement, and not as an agent, representative or employee of the City. Licensee shall have the exclusive right to control the details of its business and other operations and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Licensee acknowledges that the doctrine of respondeat superior shall not apply as between the City and Licensee its officers, agents, employees, contractors and subcontractors. Licensee further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between the City and Licensee. 12. ASSIGNMENT PROHIBITED. Licensee may not assign or otherwise transfer any of its rights, privileges or obligations under this Agreement unless specifically authorized in writing by the City which authorization shall not be unreasonably withheld, and any attempted assigned without such written authorization shall be void. Edgecliff to Crowley 11 Tract 41.01 13. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (i) hand -delivered to the other party, its agents, employees, servants or representatives, or (ii) received by the other party by United States Mail, postage prepaid, return receipt requested, addressed as follows: To THE CITY: To LICENSEE: City of Fort Worth Gas Lease Section, Land Agent 1000 Throckmorton Fort Worth, TX 76102 with a copy to: City of Fort Worth Department of Law Attn Attorney for Planning and Development 1000 Throckmorton Fort Worth, TX 76102 Texas Midstream Gas Company, L L C Dave Johns Manager — Property Rights 100 Energy Way Fort Worth, TX 76102 with a copy to: Texas Midstream Gas Services , L L C. c/o CT Corporation 350 North St. Paul Street Dallas, Texas 75201 14. NON-DISCRIMINATION COVENANT. Licensee shall not discriminate against any person on the basis of race, color, national origin, religion, handicap, sex, sexual orientation or familial status in the receipt of benefits from Licensee's business operations, in any opportunities for employment with Licensee or in the construction or installation of the Pipeline. 15. NO WAIVER. The failure of the City to insist upon the performance of any teor provision of this Agreement or to exercise any rights that the City may have, either under this Agreement or the law, shall not constitute a waiver of the City's right to insist upon appropriate performance or to assert any such right on any future occasion. 16. GOVERNING LAW AND VENUE This Agreement shall be construed pursuant to and in accordance with the laws of the United States of America and the State of Texas. If any action, whether real or asserted, at law or in equity, arise out of the terms of this Agreement, venue for such action shall lie exclusively in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. Edgecliffto Crowley 12 Tract: 41.01 17. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable by a final order entered by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. For purposes of this Agreement, a court order shall be final only to the extent that all available legal rights and remedies pertaining to such order, including, without limitation all available appeals, have been exhausted. In such an event, the City and Licensee agree that they shall amend or have amended this Agreement to comply with such final order entered by a court of competent jurisdiction. 18. FORCE MAJEURE. In the event Licensee's performance of any of the terms, conditions or obligations required by this Agreement is prevented by a cause or event that is not within Licensee's reasonable control, Licensee's non-performance shall be deemed excused for the period of such inability. Causes or events that are not within the Licensee's control shall include, but not be limited to, acts of God, strikes, sabotage, riots or civil disturbances, failure or loss of utilities, explosions and natural disasters. 19. HEADINGS NOT CONTROLLING. Headings and titles that are used in tins Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 20. ENTIRETY OF AGREEMENT. This Agreement, including the exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Licensee as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with the terms and conditions of this Agreement. This Agreement shall not be amended unless agreed to in writing by both parties. EXECUTED as of the later date below: CITY OF FORT WORTH: By: • /14 4 Assistant City Manager Date: 2 h b �/ Edgecliff to Crowley Tract: 41.01 TEXAS MIDSTREAM GAS SERVICES, L.L.C. By: Date: hnanager Property Rights 3� l OFFICIAL RECORD 13 CITY SECRETARY FT. WORTH, TX APPROVED AS TO FORM AND LEGALITY: By: ` kA 2X�1,� Assistant City Attorney M&C: THE STATE OF TEXAS COUNTY OF TARRANT Attested by, Marty flendrix, ACKNOWLEDGEMENTS BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Fernando Costa, Assistant City Manager of the City of Fort Worth, a home -rule municipal corporation of the State of Texas, known to me to be the person whose name is subscribed to the foregoing instrument and, that he has executed the same for the purposes and consideration therein expressed. 4 GIVEN UNDER MY HAND AND SEAL OF OFFICE this ,� day of [SEAL] • Vvn iQ.-1JQit,/itt•S Print Name of Notary Public Here My Commission Expires: Notary Public in and for the State of Texas Edgecliff to Crowley 14 Tract: 41.01 _ . I . . I 1 , • Ili 41\11 In;',DANIELS EVONIA DAN *•• ���' .�•,= MY COMMISSION EXPIRES ,;•.�• ��,; July 10, 2013 r �Q, 4 add .2011 ^,ala • I. OFFICIAL RECORD CITY SECRETARY FT, WORTH, TX THE STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Dave Johns, Manager Property Rights, on behalf of Texas Midstream Gas Services, L.L.C. ,an Oklahoma limited liability company, known to me to be the person whose name is subscribed to the foregoing instrument and, that he has executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this /r day of 727e-edi..,, 2011. &AAAA:2S AAh.AA t\atil,9id LORI R. PEAGOCK My Commission Expires February 22, 2014 , . . r ! , r . J IY . 9 V - . s • OcesW oe. wetted-Ci _ Notary Public in and for the State of Texas ,Goa; R. Peetcocz. Print Name of Notary Public Here My Commission Expires: '24.21020/V Edgecliff to Crowley 15 Tract: 41.01 TA EXHIBIT "A" PA\T COL,ATY, TEXAS J • • / Lv cel 30.86' 5/8"IRF P.O.C. lam, 1 BLANKET !DRAINAGE EASEMENT VOL 8535�PG. 429 / 11 1j1 l 1 TRACT 3 TIM P. HARPER & NANCY HARPER INST #D197217102 DESCRIBED VOL 4990, PG, 303 (EDCR-044.01) Z1-Le \.55 o / rN >0 N Co Qz U tY Q W1- = co 0< 5/8"IRF DIRT ROAD TERMINAL POINT LAT 32'38'59 6888" LONG—97'19'49.6197n CHESAPEAKE Ez0' EXPLORATION, L.P. INST. #D207214123 045.00) S73'51 28 E 17.58' / DIRT ROAD TEMPORARY / EASEMENT N 16'08' 32'E 624.28' SEE DETAIL „A„ TRACT 2 CHISOM INVESTMENT AND MANAGEMENT GROUP INST. #D204218597 >- 7 LY wo �z w U Q o < tc • 03 d 1 w etc 7, TEMPORARY 3 ENCROACHMENTi WORKSPACE E Q V) TRACT 2 TIM P. HARPER I& NANCY HARPEF? INST. #0197217102 DESCRIBED VOL.4990 PG, 303 (EbCR-63.OU) LINE L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 L11 LINE TABLE 1 BEARING DISTANCE I N21'51'08"E N 63'49' 22"E S73'51'28"E S63'49'22"W S16'09'08"W S6816'54"W S16'08'32"W N6317'03"E 516°08'32"W S73'51'28'E N8413'24'W 291.39' 44.74' 30.00' 47.35' 43.76' 78.63' 293.62' 1 43.12' 35.46' 30.30' 30.50' I LEGEND —c— FIBER OPTIC LINE —s— SANITARY SEWER LINE RAILROAD TRACKS N8413'24'W TEXAS` ELECTRIC 50.21' VOLUME SERVICE CO. / 2 758, PAGE LP.O.B. AT32'38'47.3624" EDCR`039,00 331 LONG—97'19'54.8215" TOTAL LINEAR FEET' 1,336 09' ENCROACHMENT LICENSE AREA: 0.916 ACRES TEMPORARY ENCROACHIvENT WORKSPACE: 1.3.58 ACRES TITLE INFORMATION PROVIDED BY TEXAS MIDSTREAM GAS SERVICES, L.L.C. 2 10/18/10 JAK REVISED PER CITY COMMENTS 1 8/30/10 JF ALIGNMENT CHANGE 0 1 /31 /10 PJG ISSUED REV. DATE BY TLJ TLJ MCW DESCRIPTION CHK. PROJECT NO. EDGECLIFF TO CROWLEY 24" LAMB —STAR ENGINEERING, L.P., 5700 W PLANO PARKWAY #1000, PLANO, TX. 75093 214-440-3600 ARK C WILLIAMS REGISTERED PROFESSIONAL LAND SURVEYOR NO. 5461 BEARINGS, DISTANCES, & AREAS BASED ON TEXAS STATE PLANE GRID COORDINATE SYSTEM NAD 83, NORTH CENTRAL ZONE, DERIVED FROM GPS OBSERVATIONS. ,s,„\I>;40%‘" Q I I I 1 0 0 ct w r I I S ELECTRIC S R VICE GO., VOLUME 2758' DETAIL "A" NOT TO SCALE 1 OF 4 t e MIDSTREAM x �� s G A S S E R V I. C E S PROPOSED PIPELINE CROSSING THE PROPERTY OF CITY OF FORT WCRTH DRAINAGE EASEMENT FORT WORTH TARRANT COUNTY DRAWN BY: JE DATE: 01/13/10 DWG. NO. CHECKED BY: MCW DATE: 01 /13/10 1 "=200' APP.: TX—TARR—EDCR-041.01 TEXAS REV. 2 Q 0 O 0 0 00 0 LJJ 7 O U 0 LJ 4- 4- U LL1 > a) > L U a) 0 o_ 9_ 4_ 0 Q 0 U co 0 cV 0 IN 2 pAGE 331 EXHIBIT "A" TARRA\T CC,\TY, TEXAS PROPERTY DESCRIPTION OF ENCROACHMENT LICENSE AREA BEING a 30 foot wide encroachment license area situated in the G Herrera Survey Abstract Number, 2027, City of Fort Worth, Tarrant County, Texas and being a portion of Tract 1 described in Deed to Chisom Investment & Management Group recorded in Instrument Number D204218597, Official Public Records of Tarrant County, Texas (0 P.R.T.C.), being more particularly described by metes and bounds as follows: COMMENCING at a 5/8-inch iron rod found for the southeast corner of said Chisom Tract 1, in the north line of a tract of land described in Deed to Texas Electric Service Company, recorded in Volume 2758, Page 331, O.P.R.T.C.T.; THENCE North 84°13'24" West, along the common south line of said Chisom Tract 1 and the north line of said Texas Electric Service tract, a distance of 30.86 feet to the POINT OF BEGINNING; THENCE North 84°13'24" West, continuing along the common south line of said Chisom tract and the north line of said Texas Electric Service tract, a distance of 30.50 feet to a point for the southwest corner of said Chisom Tract 1 in the east Right -of -Way line of M.K.&T. Railroad (200' ROW); THENCE North 16°09'08" East, along the common west line of said Chisom Tract 1 and the east line of said M.K.&T. Railroad right-of-way, a distance of 358.30 feet to a point for corner: THENCE departing said common line, over and across said Chisom Tract 1 the following courses and distances: N orth 21°51'08" East, a distance of 291.39 feet to a point for corner; N orth 63°49'22" East, a distance of 44.74 feet to a point for corner; N orth 16°08'32" East, a distance of 617.66 feet to a point for corner in the north line of said Chisom Tract 1 and the common south line of Tract 3 referenced in deed to Tim P. Harper & N ancy Harper recorded in Instrument Number D197217102, 0 P.R.T.0 T and described in Volume 4990, Page 303, 0 P.R.T.C.T. THENCE South 73°51'28" East, along said common line a distance of 30.00 feet to a 5/8-iron rod found for the northeast corner of said Chisom Tract 1 and the common northwest corner of Tract 2 described in deed to Chisom Investment and Management Group recorded in Instrument Number D204218597; THENCE South 16°08'32" West, departing said common line, continuing along the East line of said Chisom Tract 1 and the West line of said Tract 2, a distance of 630.91 feet to a point for corner THENCE departing said common line, over and across said Chisom Tract 1, the following courses and distances: S outh 63°49'22" West, a distance of 47.35 feet to a point for corner; S outh 21°56'46" West, a distance of 267.62 feet to a point for corner; S outh 16°09'08" West, a distance of 388.49 feet to the POINT OF BEGINNING and containing 0.916 acres of land, more or less. Bearing based on Texas State Plane Coordinate System NAD 83, North Central Zone, Derived from GPS Observations. TOTAL LINEAR FEET: 1,336 09' ENCROACHMENT LICENSE AREA: 0.916 ACRES TEMPORARY ENCROACHMENT WORKSPACE: 1.358 ACRES _ TITLE INFORMATION PROVIDED BY TEXAS MIDSTREAM GAS SERVICES, L.L.C. 2 10/18/10 JAK 1 8/30/10 JF ▪ 0 1 /31 /10 PJG REV. DATE BY REVISED PER CITY COMMENTS ALIGNMENT CHANGE 4SSUED TLJ TLJ MCW DESCRIPTION CHK. PROJECT NO. EDGECLIFF TO CROWLEY 24" LAMB -STAR ENGINEERING, L.P., 5700 W. PLANO PARKWAY #1000, PLANO, TX. 75093 214-440-3600 e(*°(‘XAbi( MARK C. WILLIAMS REGISTERED PROFESSIONAL LAND SURVEYOR NO. 5461 J BEARINGS, DISTANCES, at AREAS BASED ON TEXAS STATE PLANE GRID COORDINATE SYSTEM NAD 83, NORTH CENTRAL ZONE, DERIVED FROM GPS OBSERVATIONS. 2 OF 4 MIDSTREAM x 4 G A S S E R V I C E S PROPOSED PIPELINE CROSSING THE PROPERTY OF CITY OF FORT WORTH DRAINAGE EASEMENT FORT WORTH TARRANT COUNTY TEXAS DRAWN BY: JF DATE: 01/13/10 DWG. NO. REV. CHECKED BY: MCW DATE:01/13/10 1 "=200' APP.: TX-TARR-EDCR-041.01 2 0 6 0 a) w 0 a) a 0 U 0 0 0 EXHIBIT "A" TA-: A\ T CO`., \ TY, TPXAS PROPERTY DESCRIPTION OF TEMPORARY ENCROACHMENT WORKSPACE "A" BEING a variable width temporary encroachment workspace situated in the G Herrera Survey Abstract Number, 2027, City of Fort Worth, Tarrant County, Texas and being a portion of Tract 1 described in Deed to Chisom Investment & Management Group recorded in Instrument Number D204218597, Official Public Records of Tarrant County, Texas (0 P.R.T.C.) being more particularly described by metes and bounds as follows: COMMENCING at a 5/8-inch iron rod found for the southeast corner of said Chisom Tract 1, in the north line of a tract of land described in Deed to Texas Electric Service Company, recorded in Volume 2758, Page 331, O.P.R.T.C.T.; THENCE North 84°13'24" West, along the common south line of said Chisom Tract 1 and the north line of said Texas Electric Service tract, a distance of 61.36 feet to a point for the southwest corner of said Chisom Tract 1 in the east Right -of -Way line of M.K.&T. Railroad (200' ROW) THENCE North 16°09'08" East, along the common west line of said Chisom Tract 1 and the east line of said M.K.&T. Railroad right-of-way, a distance of 358.30 feet to the POINT OF BEGINNING; THENCE North 16°09'08" East , along the common west line of said Chisom Tract 1 and the east line of said M.K.&T. Railroad right-of-way, a distance of 943.86 feet to a point for the northwest corner of said Chisom Tract 1, in the south Right -of -Way line of Alta Mesa Boulevard; THENCE North 63°17'03" East, along the north line of said Chisom Tract 1 and the common south Right -of -Way line of said Alta Mesa Boulevard a distance of 43.12 feet a point for the northwest corner of Tract 3 referenced in deed to Tim P. Harper & Nancy Harper recorded in Instrument Number D197217102 , O.P.R.T.C.T., and described in Volume 4990, Page 303, O.P.R.T.C.T.; THENCE departing the south Right -of -Way line of said Alta Mesa Boulevard, along the common north line of said Chisom Tract 1 and the south line of said Harper Tract 3, the following courses and distances: South 16°08'32" West, a distance of 35.46 feet to a point for corner; South 73°51'28" East, a distance of 30 30 feet to a point for corner from which a 5/8-inch iron found for a northeast corner of said Chisom Tract 1 and a common southwest corner of said Harper Tract 3 bears South 73°51'28" East a distance of 30.00 feet; THENCE departing the north line of said Chisom Tract 1 and the common south line of said Harper Tract 3, over and across said Chisom tract the following courses and distances: South 16°08'32" West, a distance of 617.66 feet to a point for corner; South 63°49'22" West, a distance of 44.74 feet to a point for corner; South 21°51'08" West, a distance of 291.39 feet to the POINT OF BEGINNING and containing 1.021 acres of land, more or less. Bearing based on Texas State Plane Coordinate System NAD 83, North Central Zone, Derived from GPS Observations. TOTAL LINEAR FEET 1,336 09' ENCROACHMENT LICENSE AREA: 0.916 ACRES = TEMPORARY ENCROACHMENT WORKSPACE: 1.358 ACRES TITLE INFORMATION PROVIDED BY TEXAS MIDSTREAM GAS SERVICES, L.L.C. 2 10/18/10 JAK 1 8/30/10 JF 0 1 /31 /10 PSG REV. DATE BY PROJECT NO. REVISED PER CITY COMMENTS ALIGNMENT CHANGE ISSUED DESCRIPTION TLJ TLJ MCW CHK. EDGECLIFF TO CROWLEY 24" LAMB —STAR ENGINEERING, L.P., 5700 W. PLANO PARKWAY #1000, PLANO, TX. 75093 214— 440— 3600 (MIRK C. WILLIAMS REGISTERED PROFESSIONAL LAND SURVEYOR NO. 5461 J BEARINGS, DISTANCES, & AREAS BASED ON TEXAS STATE PLANE GRID COORDINATE SYSTEM NAD 83, NORTH CENTRAL ZONE, DERIVED FROM GPS OBSERVATIONS. 3 OF 4 t e x C G MA S IDSTREAE SM S E R V I C PROPOSED PIPELINE CROSSING THE PROPERTY OF CITY OF FORT WORTH DRAINAGE EASEMENT FORT WORTH TARRANT COUNTY TEXAS DRAWN BY: JF CHECKED BY: MCW 1 "=200' DATE: 01 / 13/ 10 DWG. NO. DATE: 01 /13/10 APP.: 0 0 co 0 N W 0 d- 0 0 U 1 x 0) 4- U 0 0 N L_ () U 0 Q_ 4- U a) w U a) a 0) 0 a) U 0 REV N 0 N TX—TARR—EDCR-041.01 2 0 AY XH131T "A" AH'A\ CO\ HXAS PROPERTY DESCRIPTION OF TEMPORARY ENCROACHMENT WORKSPACE "B" BEING a variable width temporary encroachment workspace, situated in the G. Herrera Survey, Abstract Number 2027, City of Fort Worth, Tarrant County, Texas and being a portion of Tracts 1 & 2 described in a Deed to Chisom Investment & Management Group recorded in Instrument Number D204218597 of the Official Public Records of Tarrant County, Texas (hereinafter referred to as O.P.R.T.C.T) and being more particularly described by metes and bounds as follows: COMMENCING at a 5/8-inch iron rod found for the southeast corner of said Chisom Tract 1, in the north line of a tract of land described in Deed to Texas Electric Service Company, recorded in Volume 2758, Page 331, O.P.R.T.C.T.; THENCE North 84°13'24" West, along the common south line of said Chisom Tract 1 and the north line of said Texas Electric Service tract, a distance of 30.86 feet to a point; THENCE North 16°09'O8°° East, a distance of 344.73 feet to the POINT OF BEGINNING, said point being in the east line of said Chisom Tract 1 and being the northwest corner of a tract of land described as Tract 2 in Deed to Tim P. Harper and Nancy Harper recorded in Instrument Number D197217102 - O.P.R.T.C.T.; THENCE departing said common line, over and across said Chisom Tract 1 the following courses and distances: North 16°09'08" East, a distance of 43.76 feet to a point for corner; N orth 21°56'46" East, a distance of 267.62 feet to a point for corner; N orth 63°49'22" East, a distance of 47.35 feet to a point for corner in the east line of said Chisom Tract 1 and the common west line of said Chisom Tract 2; THENCE South 16°08'32" West, along said common line, a distance of 293.62 feet a 5/8-inch iron found for a southwest corner of said Chisom Tract 2 and a common southeast corner of said Chisom Tract 1; THENCE South 68°16'54" West, along the south line of said Chisom Tract 1 and the common north line of said Harper Tract 2, a distance of 78.63 feet to the POINT OF BEGONNDNG and containing 0.337 acres, more or less. TOTAL LI \EAR FEET 1,336 39' ENCROACHVvENT LICENSE AREA: 0.916 ACRES TEvVPORARY E\CROACHVIE\T WORKSPACE: 1.358 ACRES TITLE I\FORVATIO\ PROVIDED 3Y TEXAS MIDSTREAV GAS SERVICES, L.L.C. 2 10/18/10 JAK REVISED PER CITY COMMENTS TLJ 1 8/30/10 JF ALIGNMENT CHANGE TLJ 0 1 /31 /10 PJG ISSUED MCW REV. DATE BY DESCRIPTION CHK. PROJECT \0. EDGECLIFF TO COWJEY 24" LAV3-STAR ENCI\EERING, L.P., 5703 W. PLANO PARKWAY #1 C00, PLANO, TX. 75093 214- 440- 3600 `-roIAR C C. WILLIAvS REGISTERED PROFESSIO \O. 5461 'A •t • • ••••••••••••••.••uaa.•••••••.••• 4 OF T coket:;`01.i.i.i.olfkisek9 , • • MARK C. ' I LLI AMS ;•-% 5 4 6 1 ase ` •9s\94f A � V -- NAL LAND SURVEYO 4 3EARI\GS, DISTA\CES, & AREAS 3ASED 0\ TEXAS STATE PLANE GRID COORDI\ATE SYSTEV \AD 83, \ORTH CENTRAL ZO\E, DERIVED FROM GPS OBSERVATIONS. 4 OF 4 te MIDSTREAM GAS SERVICES PROPOSED PIPELINE CROSSING THE PROPERTY OF CITY OF FORT WCT— DMA \AGE EASEVE\T FORT WORTH DRAWN BY: JF CHECKED BY: MCW 1 "=200' S TARRANT COUNTY DATE: 01/13/10 DATE: 01/13/10 APP.: DWG. D. TX-TARR-EDCR-041.01 TEXAS PEV. N 0 6 0 DO 0 O • CD 0) 4 U 0) 01 w 0) 0 0) 0 0 N 0 0 L EXHIBIT "B" Chesapeake Midstream Partners Page 1 Harvey Stockman Barnett Shale Manager— Midstream Operations MIDSTREAM PARTNERS January 17, 2011 Mr. Ron Gafford President of the Board, Hallmark —Camelot Highland Terrace Neighborhood Association 1829 Heidelberg Drive Fort Worth, TX 76134 Via email: aaffordsnsbcalobal.net Dear Mr. Gafford: Re: Monday, December 6, 2010 Meeting Question Responses Thank you for your recent invitation to discuss our proposed construction of a 24" pipeline connecting our Edgecliff Compressor Facility to our Sycamore Compressor Facility and new area well pads. Chesapeake Midstream Partners appreciates the opportunity to interact with your neighborhoods' residents and to respond to questions from the community We have included responses to the questions from your December 8, 2010 email below. 7. We heard that the gas is 'wet' gas - yet all the communications up to now is that this gas is dry gas. Which is it? This pipeline will transport water -saturated dry gas that is typical of the gas Chesapeake produces in Tarrant, eastern Johnson and western Dallas Counties. The gas is virtually all methane and contains little to no liquid hydrocarbons such as those commonly found in "wet' gas which may include benzene or other chemical compounds. EXHIBIT "B" Chesapeake Midstream Partners Page 2 2. What are the risk factors of 'wet' gas over 'dry' gas? There is no difference in the risk associated in the transport of wet gas over dry gas given that appropriate operations and maintenance practices are followed. Chesapeake Midstream Partners applies appropriate technology monitoring, and operations and maintenance practices based on the product transported in a pipeline. 3. Do you share your 'emergency' plans with the FW police and fire departments? Yes, Chesapeake maintains written emergency procedures in accordance with City of Fort Worth ordinances, the regulations of both the Railroad Commission of Texas and the U.S. Department of Transportation and we provide these procedures to the above mentioned agencies upon request. Additionally, we engage City of Fort Worth police and fire departments and Tarrant County Sheriff's Department emergency officials annually as part of our Damage Prevention Program. 4. You stated that each section of pipeline is separated by a valve. Is this an automatic shutoff valve in case of a line rupture or break? Our pipelines are segmented by valves to provide access for maintenance and construction, operational flexibility, and rapid isolation in the event of an emergency. We install remotely controlled valves at system -to -system interconnects with other gas company facilities The remainder of our pipelines are equipped with manually operated valves. All Chesapeake Midstream Partners' pipeline and compressor facilities and all Chesapeake Energy well pads are equipped with protective shutdown devices and are monitored 24 hours a day by our Gas Control Department and Operations Center. 5. Please provide a map with the proposed route clearly marked. Also, on this map include the other gathering and transmission gas pipelines that currently exist. A hard copy of the map and a copy of the map on a compact disc are attached. EXHIBIT "B" Chesapeake Midstream Partners Page 3 6. Please provide information about the pipeline (size, maximum pressure, operating pressure, etc.). Our pipeline will be constructed of 24" diameter piping with a 0.375" wall thickness made of steel with a yield strength of 65,000 pounds per square inch manufactured and subject to quality control in accordance with the American Petroleum Institute Specification for Line Pipe 5L. The piping is coated with a factory applied epoxy external coating. The piping to be installed by horizontal directional drilling is coated with a second factory applied abrasion resistant epoxy overcoating. The piping will have a design pressure of 715 PSIG utilizing a Class 4 (0.4) design factor, a Maximum Allowable Operating Pressure of 500 PSIG, and a normal maximum operating pressure of approximately 250 PSIG At this normal maximum operating pressure, the piping will be operated at just over 12% of its full strength. Please note that Chesapeake utilizes a Class 4 (0.4) design factor which exceeds The regulatory required Class 3 (0.5) design factor. 7. Please provide information about pipeline maintenance. If federal or state law controls this maintenance, please provide a copy of those laws and regulations. If those laws and regulations are lax (Le. once yearly maintenance), please provide a plan to maintain more proactively (once a month, once a quarter, etc.). If maintenance is needed, please provide a typical description of what that maintenance would be. (I E. when would excavation be required, what maintenance can be done in the pigging process, etc.). This pipeline is subject to regulation by the Railroad Commission of Texas and the Texas Commission on Environmental Quality. The primary regulator is the Railroad Commission. Additionally, City of Fort Worth ordinance requirements apply to the pipeline. The highly detailed regulations that apply to our pipelines are contained within C F.R. 49: Part 192 TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE: MINIMUM FEDERAL SAFETY STANDARDS. Chesapeake Midstream Partners' operations and maintenance procedures are based on and meet or exceed these regulations. A hard copy of the regulations is enclosed. To access an electronic copy of the most recent version of the regulations, please go to www.ohmsa dot.aov. EXHIBIT "B" Chesapeake Midstream Partners Page 4 We welcome the opportunity to meet with the Association to review the content of our procedures and answer specific questions pertaining to our procedures. At a minimum, Chesapeake Midstream Partners' pipeline operations and maintenance will include: 1. Continuous pressure monitoring by our 24-hour Gas Control Department 2. Quarterly patrols 3. Quarterly leak surveys 4. Annual cathodic protection monitoring 5. Annual atmospheric corrosion inspection of aboveground pipeline equipment 6. Maintenance of any gates utilized to access the pipeline's easement 7. Maintenance of any security fencing and/or pipe guards enclosing the pipeline's above ground equipment 8. Quarterly maintenance pigging 9. Seasonal vegetation control 10. Continual post -construction ei osion control 11. Continuous application of Damage Prevention measures including prompt One Call responses via a dedicated and specially trained Line Locate staff, investigation of any unreported construction or landscaping activity occurring on or near the pipeline, and continual pipeline marker maintenance 12. Timely responses to landowner and resident inquiries 13. Scheduled and un-scheduled regulatory agency inspections 14. Semi annual internal corrosion control monitoring 15. Annual valve inspections and maintenance 16. Annual pressure control equipment inspections and tests 17. Regular pipeline assessment measures 18. Annual population density surveys In the unlikely event that maintenance -related excavation of the pipeline is required, Chesapeake will adhere to applicable City of Fort Worth ordinance requirements and provide written notification to all businesses and residents within 500' of the pipeline a minimum of five days prior to the excavation 8. It is our desire that the pipeline be maintained well if it is located in our neighborhood. The city should provide a plan to oversee the maintenance and place a log on the city website so that all residents can see what is happening. Our above described operations and maintenance practices should demonstrate our shared interest in the careful and thorough maintenance and safe operations EXHIBIT "B" Chesapeake Midstream Partners Page 5 of the proposed pipeline and all of our facilities, and we will gladly meet with City officials to discuss this suggestion at the request of the City officials. 9. Please provide a PiR for the pipeline. The calculated Potential Impact Radius (PiR) for this pipeline is approximately 370 feet. Please note that a PIR is an estimate based on a very basic calculation that only considers a factor for natural gas, a pipeline's diameter, and a pipeline s Maximum Allowable Operating pressure and does not consider the following pertinent factors that should significantly minimize the likelihood of a pipeline incident and any resulting effects. ® the pipeline's planned 40' depth of cover in the area nearest to residences 6 the 250 PSIG actual maximum operating pressure of the pipeline versus its 500 PSIG Maximum Allowable Operating Pressure and 715 PSIG design pressure 6 me use of a Corrosion Allowance in the piping selection O the exclusion of the Corrosion Allowance in the calculation of the 715 PSIG design pressure 3 the use of a Class 4 (0.4) design factor O Chesapeake Midstream Partners' increased inspection and maintenance frequencies Please note that Chesapeake Midstream Partners and other gathering, distribution, and transmission pipeline operators have installed hundreds of miles of pipeline of various sizes and operating pressures within the City of Fort Worth that have provide for the safe transportation of natural gas. Also, within a city, our homes are surrounded by busy highways, air, truck, and rail transport of a variety of materials and natural gas, electric, and municipal utilities. As per my statement in our December 6ti, meeting, please consider the fact that the likelihood of an incident occurring at any single specific point along a pipeline is extremely low. 1O.Please provide a plan to replace the greenbelt that will necessarily be destroyed to place the pipeline. Also, the city should make available on its website a copy of the environmental study that will need to be done since this pipeline will disrupt an existing waterway. The greenbelt vegetation should not be significantly disturbed as the majority of our pipeline installation area to the west of your neighborhood and all waterway crossings will be installed via a horizontal directional drill. Impact from the EXHIBIT "B" Chesapeake Midstream Partners Page 6 horizontal directional drill will include entry and exit excavations at the beginning and end of the drill and minimal foot and vehicular traffic along the drill's path related to monitoring the horizontal directional drilling progress as allowed by existing vegetation or terrain. Temporary sound enclosures will be installed around all stationary horizontal directional drilling equipment. A section north of Hallmark Park and south of the residences closest to the pipeline will be installed via a trench to a minimum depth of cover of four feet. The land in the trenched area will be restored as nearly as possible to its previous condition as per the legally binding agreement between Texas Midstream Gas Services and the involved property owner. For clarity, graphics depicting horizontal directional drill and trench pipeline installation methods are attached. The provided map depicts our trenched and horizontal directional drilling sections and the horizontal directional drilling entry and exit excavations. A detailed Environmental Report including data forms photos cultural reports, and a map all indicating all identified environmental features including waterways and wetlands was completed for the entire pipeline route. The report was prepared to meet internal Chesapeake Midstream Partners' requirements as part of the pipeline's routing and design process and is not available on a City website. Due to the technical nature of the report, we will be glad to meet with the Association to review the report's content and answer specific questions pertaining to the report. 11.Please provide a plan to insure the homeowners within the PIR for loss of existing structures, land use, and loss of life if there should be an incident. Chesapeake Midstream Partners and all safety sensitive industry operators develop and maintain emergency response and contingency plans that are exercised in the event of an incident. In the highly unlikely event of an incident for which Chesapeake Midstream Partners is responsible, we will reimburse impacted landowners for identified damage caused by such an event. Customarily, depending on the incident, providing lodging, meals, and reasonable and verifiable out of pocket expenses to all impacted residents evacuated is standard. We will meet with each homeowner individually and assess each property to determine the exact extent of any damage when arriving at a reimbursement amount. EXHIBIT "B" Chesapeake Midstream Partners Page 7 We carry insurance coverage with limits customary to our industry. However, our response to the impacted residents does not rely on the existence of insurance coverage, and we will appropriately respond to the impacted residents regardless of the existence of insurance coverage. 12.If the long-term plan includes additional pipelines on this route, please include that information (estimated construction dates, size, pressure, etc.) There are currently no plans for an additional pipeline to follow this pipeline's route. There are plans to connect new well pad gathering pipelines to the proposed pipeline south and north of the Neighborhood. The construction of the well pad gathering pipelines' connections is planned to be concurrently performed with the proposed pipeline's installation. 13.Please provide a plan to insure that in any future sate of the pipeline company or its assets that the buyer will be bound by the agreements reached with the City of Fort Worth and the Association. Any future operator of the proposed pipeline will be obligated to comply with the same city, state and federal regulatory obligations as Chesapeake Midstream Partners, and will be bound by all existing agreements and contracts including statements contained in this and any other correspondence provided to your Association. 14.Our members have asked this question. 'What benefits will this pipeline bring to our neighborhood? Please provide a list of these benefits. Neighborhood residents will benefit from substantial easement and license fees paid to the City of Fort Worth that will contribute to the city's operating budget and infrastructure. The Hallmark Youth Association has received substantial easement payments. It is not uncommon for neighbors everywhere to provide easements for electricity telephone, cable, natural gas, water, and sewage easements so that their neighbors can enjoy these services. EXHIBIT "B" • Chesapeake Midstream Partners Page 8 Everyone will benefit from the ability to develop our domestic natural resources and provide clean -burning natural gas and lessen our dependence on foreign energy sources. Please be assured that Chesapeake Midstream Partner takes great pride in the construction, and safe operations and maintenance of all of our facilities, and that we place the highest value on protecting the public and the environment The length of this letter and the time and effort spent in its preparation represent our sincere interest in providing detailed and complete responses to your questions. We're available to meet with you and your neighborhoods residents to answer any other questions, or to elaborate on the above responses. Please don't hesitate to contact Holli Strong at 817-502-5690 or via email at holli.stronoc chk.com or me if you have any questions. Sincerely, Harvey Stockman cc: Jungus Jordan, City of Fort Worth Councilman Sarah Fullenwider City of Fort Worth Assistant City Attorney Rick Trice, City of Fort Worth Gas Well Inspector Libby Willis Fort Worth League of Neighborhoods Charles Washington Vice President of the Board, Hallmark —Camelot —Highland Terrace Neighborhood Association Steve Epstein, Board Member, Hallmark —Camelot —Highland Terrace Neighborhood Association Holli Strong, Chesapeake Energy Corp. EXHIBIT "B" • Chesapeake Midstream Partners Page 9 Chesapeake Midstream Partners, L.P. 100 Energy Way • Fort Worth, Texas 76102 Direct 817-502-5628 • harvey.stockman@chk.com Ire A trenching machine or track hoe creates a path for the pipeline within the easement. VAnefin l =r- Piping is welded together, inspected, • and installed in the trench. The trench is filled, and the surface area is restored Horizontal Directional Drill Method cp cose yur A horizontal directional drilling (HDD) unit creates a path for the • pipeline within the easement. • Specially coated piping is welded ;together, inspected, and pulled back through the path. M&C Review Page 1 of 2 71. COUNCIL ACTION: Approved on 1/25/2011 CONTINUED FROM A PREVIOUS WEEK DATE 11/9/2010 REFERENCE NO.: L-15096 CODE SUBJECT: L TYPE: NON - CONSENT LOG NAME: PUBLIC HEARING: Official site of the City of Fort Worth, Texas FORT WORTH 062050 NATURAL GAS PIPELINE AB NO Authorize Execution of an Encroachment License Agreement with Texas Midstream Gas Services, L.L.C., in the Amount of $46,827.68 for a 24-inch Natural Gas Pipeline Within a City of Fort Worth Drainage Easement Located Just East of and Adjacent to the Railroad Tracks Between Altamesa Boulevard and Hallmark Drive West (COUNCIL DISTRICT 6) RECOMMENDATION: It is recommended that the City Council authorize the execution of an Encroachment License Agreement with Texas Midstream Gas Services, L.L.C., for a 24-inch Natural Gas Pipeline within a City of Fort Worth Drainage Easement located just east of and adjacent to the railroad tracks between Altamesa Boulevard and Hallmark Drive West in the amount of $46,827 68 for a term of 20 years. DISCUSSION: The City has been approached by representatives of Texas Midstream Gas Services, L.L.C., requesting an encroachment license agreement within a portion of a City -owned drainage easement in the G. Herrera Survey, Abstract No. 2027 located just east of and adjacent to the railroad tracks between Altamesa Boulevard and Hallmark Drive West. The proposed alignment will allow for a total of 1336.09 linear feet of 24-inch diameter natural gas pipeline within a 30-foot wide strip of land through the City's drainage easement (.916 acres more or less) for a term of 20 years. For initial construction, a temporary construction workspace parallel, abutting and contiguous to the west and east side of the encroachment license tract (1.358 acres more or less) shall be part of this agreement. The City owns the drainage easement but not the underlying fee tract. Texas Midstream Gas Services, L.L.C., has agreed to pay the City a fee of $23.38 per linear foot for the portion (669 feet) of the pipeline that will be installed by horizontal boring and $46 75 per linear foot for the portion (667.09 feet) of the pipeline that will be installed by means of open cut trenching through the City easement A separate agreement with the owner of the underlying fee tract has been acquired by Texas Midstream Gas Services L.L.C. Therefore, in consideration for the use of the City's drainage easement for a term of 20 years, Texas Midstream Gas Services, L.L.C., has agreed to pay a total cost of $46,827.68 Revenues received from this project will be administered in accordance with the current Financial Management Policy. Texas Midstream Gas Services, L.L.C., will be responsible for repairing and restoring any damage to the strip of land or surrounding property resulting from the construction of the pipeline. The property is located in COUNCIL DISTRICT 6, Mapsco 104D. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Planning and Development Department is responsible for the collection and deposit of funds due the City. http://apps.cfwnet.org/council_packet/mc review.asp?ID=14400&councildate=1/25/2011 3/11/2011 • M OSTAFAM G A S SERVICES April 20, 2010 LE•TTER or AUTHORIZATION J, Michael Stice Chief Executive Officer I, J. Michael Stice, as Chief Executive Officer of Texas Midstream Gas Services, L.l.-..C. ("TMGS") hereby authorize Dave Johns , Manager -Midstream Property Rights, the limited right to sign documents binding I MGS, as further described below: Such designated signature authority is limited to the documents set out below and shall not exceed a stated contractual fee amount in excess of $75,000.00 per document. Such authorization includes: (1) (2) (3) (4) (5) injunction bonds; permission to survey agreements, which may also be referred to as licenses, road use and other forms of license agreements; permits; and other miscellaneous documents, to include agreements necessary to obtain permits, but excluding documents that effect a conveyance in real property. Third parties may rely on a facsimile or copy of this document to the same degree as if it was the original. THE STATE OF OKLAHORIJA COUNTY OF OKLAHOMA ( )11 J. Michael Stice, Chief Executive Officer Thisinstrumentme on the (z)A.A.� of April, 2010 by J. was acknowledged before _ .__ day Michael Stice, Chief Executive Officer of Texas Midstream Gas Services, limited liability company, on behalf of said company. Ai..a1 rcH O FZ I \T i O N L.L.C., an Oklahoma ,) _- - bto.teati: ( la /1.0 ►\ioiary Public, State of Oklahoma t iUiy CUi"fil lls`;Ion - , I --.res.-••••=• a i : 1J! 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