HomeMy WebLinkAboutContract 43135CITY SECRETARY
CONTRACT NO. J ,�
ROAD REPAIR AGREEMENT
BETWEEN
THE CITY OF FORT WORTH
AND
�'"!i'�f•V STS -t �1tiltf '�13�; �C�-
THIS ROAD REPAIR AGREEMENT, ( "Agreement "), is made and entered into on this
the Lr day of 3 ,*ul" .Lry , 2012 by and between the CITY OF FORT WORTH, TEXAS
( "City "), a home rule municipal corporation of the State of Texas, located within Tarrant, Denton,
Wise and Parker Counties, Texas and E-i) �;:'de_°�r t`)c� rtt ��.�L
( "Operator ") for the repair of streets and/or roadways within the City ofrort Worth, Texas.
WHEREAS, Operator is in the business of drilling gas wells and, in connection therewith,
shall be engaged in drilling and production activities on property within the city limits of Fort
Worth as permitted by the City which abuts, is adjacent to, and/or is accessed by roadways within
the City of Fort Worth; and
WHEREAS, use of the roadways by the Operator for the purpose of performing the
activities described hereinabove may cause damage to the roadways; and
WHEREAS, the City and Operator, for the mutual consideration hereinafter stated, desire
to enter into this Agreement for Operator to repair said roadways for the duration of the term of this
Agreement in consideration of Operator's use of said roadways for the purpose of the activities
described hereinabove;
IT IS NOW THEREFORE AGREED THAT:
ARTICLE 1.
REPAIR OBLIGATION
1. Operator shall repair damages caused by Operator or its contractors, subcontractors,
employees, and agents, excluding ordinary wear and tear, if any, to roadways that abuts any
property permitted by the City and used by the Operator for the drilling and production of gas wells
pursuant to any active Gas Well Permits issued to Operator. The repair obligation shall continue
even if the Gas Well Permits are amended or a Multiple Gas Well Pad Site Permit is issued to allow
for the drilling of additional gas wells. This obligation shall continue during the term of this
Agreement, and Operator shall, prior to the termination of this Agreement, as provided herein,
repair such damages to such roadways, excluding ordinary wear and tear, if any, to the condition in
which such roadways existed prior to the execution of this Agreement. Operator shall make a
videotape of all such roadways prior to the start of Operator drilling and operation of each of its gas
wells and shall provide a copy of the videotape to the Director of Transportation and Public Works.
Operator shall notify the Director of Transportation and Public Works when drilling or fracing
operations are complete so that the Director of Transportation and Public Works can determine if
repairs are required.
1 -1'' P , ,. �i') IN
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
2. In connection with its obligation to repair said roadways, Operator shall use
materials of the same or better quality than those utilized to surface and/or repair the roadways
prior to execution of this Agreement and in accordance with the current standards specifications of
the City. Deviation from the materials described herein shall not be permitted without the prior
written consent of the Director of Transportation and Public Works. Repairs shall be completed in
accordance with standard engineering practices acceptable to the City.
Operator shall repair the damage to the roadways at its sole cost and expense.
4. During the term of this Agreement, Operator shall periodically inspect the roadways
during drilling, fracture stimulation or reworking of any permitted gas well to determine whether or
not any damage has occurred as a result of Operator's activities. Immediately upon discovering the
existence of any such damage to the roadways, Operator shall undertake to repair and /or remedy
same. Upon discovery of damage by the Operator, the Operator will have 48 hours to contact the
Director of Transportation and Public Works to work out a schedule of repairs. Repairs shall take
place within 30 days or immediately if the damage affects the immediate health and safety of
individuals.
ARTICLE 2.
TERM OF AGREEMENT
This Agreement shall commence upon the date indicated above and shall continue in full
force and effect until Operator has completed and/or permanently discontinued the activities upon
the roadways next to any permitted gas well.
ARTICLE 3.
INSURANCE AND INDEMNITY
The Operator shall provide or cause to be provided the insurance described below for
each well unless a Gas Well Permit has been issued wherein such insurance has been provided for
the issuance of the Gas Well Permit under the terms and conditions described in the Fort Worth
"Gas Drilling and Production" Ordinance and such insurance to continue until the well is
abandoned and the site restored.
In addition to the bond or letter of credit required pursuant to this Agreement and the Fort
Worth "Gas Drilling and Production" ordinance, the Operator shall carry a policy or policies of
insurance issued by an insurance company or companies authorized to do business in Texas. In the
event such insurance policy or policies are cancelled, the Gas Well Permits shall be suspended on
such date of cancellation and the Operator's right to operate under such Gas Well Permit shall
immediately cease until the Operator files additional insurance as provided herein.
1. General Requirements applicable to all policies.
Page 2
a. The City, its officials, employees, agents and officers shall be endorsed as an
"Additional Insured" to all policies except Employers Liability coverage
under the Operator's Workers Compensation policy.
b. All policies shall be written on an occurrence basis except for Environmental
Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella
Liability, which may be on a claims -made basis.
C. All policies shall be written by an insurer with an A -: VIII or better rating by
the most current version of the A. M. Best Key Rating Guide or with such
other financially sound insurance carriers acceptable to the City.
d. Deductibles shall be listed on the Certificate of Insurance and shall be on a
"per occurrence" basis unless otherwise stipulated herein.
e. Certificates of Insurance shall be delivered to the City of Fort Worth,
Planning and Development Department, 1000 Throckmorton Street, Fort
worth, Texas 76102, evidencing all the required coverage, including
endorsements, prior to the issuance of a Gas Well Permit.
f. All policies shall be endorsed with a waiver of subrogation providing rights
of recovery in favor of the City.
g. Any failure on part of the City to request required insurance documentation
shall not constitute a waiver of the insurance requirement specified herein.
h. Each policy shall be endorsed to provide the City a minimum thirty-day
notice of cancellation, non - renewal, and/or material change in policy terms
or coverage. A ten days notice shall be acceptable in the event of non-
payment of premium.
i. During the term of the Gas Well Permit, the Operator shall report, in a timely
manner, to the Gas Inspector any known loss occurrence which could give
rise to a liability claim or lawsuit or which could result in a property loss.
i. Upon request, certified copies of all insurance policies shall be furnished to
the City.
2. Standard Commercial General Liability Policy.
This coverage must include premises, operations, blowout or explosion, products,
completed operations, sudden and accidental pollution, blanket contractual liability,
underground resources and equipment hazard damage, broad form property damage,
independent contractors' protective liability and personal injury. This coverage shall
be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily
Injury and Property Damage.
3. Excess or Umbrella Liability.
Five Million Dollar ($5,000,000) Excess when necessary.
4. Environmental Pollution Liability Coverage.
a. Operator shall purchase and maintain in force for the duration of the Gas
Well Permit, insurance for environmental pollution liability applicable to
bodily injury, property damage, including loss of use of damaged property or
Page 3
of property that has not been physically injured or destroyed; cleanup costs;
and defense, including costs and expenses incurred in the investigation,
defense or settlement of claims; all in connection with any loss arising from
the insured site. Coverage shall be maintained in an amount of at least five
million dollars ($5,000,000) per loss.
b. Coverage shall apply to sudden and accidental, as well as gradual pollution
conditions resulting from the escape or release of smoke, vapors, fumes,
acids, alkalis, toxic chemicals, liquids or gases, waste material or other
irritants, contaminants or pollutants.
C. The Operator shall maintain continuous coverage and shall purchase
Extended Coverage Period insurance when necessary. The Extended
Coverage Period insurance must provide that any retroactive date applicable
to coverage under the policy precedes the effective date of the issuance of
the permit by the City.
5. Control of Well.
The policy should cover the cost of controlling a well that is out of control, re-
drilling or restoration expenses, seepage and pollution damage as first party recovery
for the Operator and related expenses, including, but not limited to, loss of
equipment, experts and evacuation of residents.
$ 5,000,000 per occurrence /combined single limit.
$ 500,000 sub -limit endorsement may be added for damage to property for
which the Operator has care, custody and control.
6. Workers Compensation and Employers Liability Insurance.
a. Workers Compensation benefits shall be Texas Statutory Limits.
b. Employers Liability shall be a minimum of $500,000 per accident.
C. Such coverage shall include a waiver of subrogation in favor of the City and
provide coverage in accordance with applicable State and Federal laws.
7. Automobile Liability Insurance.
a. Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and
Property Damage.
b. Coverage must include all owned, hired and not -owned automobiles.
8. Certificates of Insurance.
The company must be admitted or approved to do business in the State of Texas,
unless the coverage is written by a Surplus Lines insurer.
The insurance set forth by the insurance company must be underwritten on forms
that have been approved by the Texas State Board of Insurance or ISO, or an
equivalent policy form acceptable to the City, with the exception of
Environmental Pollution Liability and Control of Well coverage.
Page 4
C. Sets forth all endorsements and insurance coverage according to requirements
and instructions contained herein.
d. Shall specifically set forth the notice of cancellation, termination, or change in
coverage provisions to the City. All policies shall be endorsed to read "THIS
POLICY WILL NOT BE CANCELLED OR NON - RENEWED WITHOUT 30
DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY
EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR
NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE
WRITTEN NOTICE IS REQUIRED ".
e. Original endorsements affecting coverage required by this section shall be
furnished with the certificates of insurance.
ARTICLE 4.
PERFORMANCE BONDS
1. Operator shall provide a performance bond, unless a performance bond has been
provided for the issuance of Gas Well Permit under the terms and conditions described in Fort
Worth "Gas Drilling and Production" Ordinance, in an amount not less than the amount necessary
to repair the roadways, as determined by the City Director of Transportation and Public Works.
2. Prior to the beginning of any activity pursuant to the issuance of any Gas Well
Permit, unless a performance bond has been provided for the issuance of Gas Well Permit under
the terms and conditions described in the Fort Worth "Gas Drilling and Production" Ordinance,
Operator shall provide the Gas Inspector with a security instrument in the form of a bond or an
irrevocable letter of credit as follows:
a. Bond. A bond shall be executed by a reliable bonding or insurance institution
authorized to do business in Texas, acceptable to the City. The bond shall become effective
on or before the date the Gas Well Permit is issued and shall remain in force and effect for
at least a period of six (6) months after the expiration of the Gas Well Permit term or until
the well is plugged and abandoned and the site is restored, whichever occurs first. The
Operator shall be listed as principal and the instrument shall run to the City, as obligee, and
shall be conditioned that the Operator will comply with the terms and regulations of this
Ordinance and the City. The original bond shall be submitted to the Director of
Transportation and Public Works with a copy of the same provided to the City Secretary
and the Gas Inspector.
b. Letter of Credit. A letter of credit shall be issued by a reliable bank authorized to do
business in Texas and shall become effective on or before the date the Gas Well Permit is
issued. The letter of credit shall remain in force and effect for at least a period of six (6)
months after the expiration of the Gas Well Permit term. The City shall be authorized to
draw upon such letter of credit to recover any fines or penalties assessed under this
ordinance. Evidence of the execution of a letter of credit shall be submitted to the Director
of Transportation and Public Works submitting an original signed letter of credit from the
banking institution, with a copy of the same provided to the City Secretary and the Gas
Inspector. If the Letter of Credit is for a time period less than the life of the well as required
by Ordinance Number 14880, L,21,- & -,f agrees to either renew the Letter of Credit or
Page 5
replace the Letter of Credit with a bond in the amount required by the City of Fort Worth
Ordinance Number 14880, on or before 45 days prior to the expiration date of the Letter of
Credit. If i`nw-VtS r fails to deliver to the City of Fort Worth either the renewal Letter
of Credit or replacement bond in the appropriate amount on or before 45 days prior to the
expiration date of the Letter of Credit, the City of Fort Worth may draw the entire face
amount of the attached Letter of Credit to be held by the City of Fort Worth as security for
Fi-Nt- rVtSt 's performance of its obligations under Ordinance Number 14880.
C. Whenever the Gas Inspector or the Director of Transportation and Public Works
Department finds that a default has occurred in the performance of any requirement or
condition imposed by this Agreement, a written notice shall be given to Operator. Such
notice shall specify the work to be done, the estimated cost and the period of time deemed
by the Gas Inspector or the Director of Transportation and Public works Department to be
reasonably necessary for the completion of such work. After receipt of such notice, the
Operator shall, within the time therein specified, either cause or require the work to be
performed, or failing to do so, shall pay over to the City one hundred twenty -five percent
(125 %) of the estimated cost of doing the work as set forth in the notice.
d. The City shall be authorized to draw against any irrevocable letter of credit or bond
to recover such amount due from Operator. Upon receipt of such monies, the City shall
proceed by such mode as deemed convenient to cause the required work to be performed
and completed, but no liability shall be incurred other than for the expenditure of said sum
in hand..
e. In the event Operator does not cause the work to be performed and fails or refuses to
pay over to the City the estimated cost of the work to be done as set forth in the notice, or
the issuer of the security instrument refuses to honor any draft by the City against the
applicable irrevocable letter of credit or bond the City may proceed to obtain compliance
and abate the default by way of civil action against Operator, or by criminal action against
the Operator, or by both such methods.
f. The cancellation of any bond or letter of credit for the sole purpose of the repair of
roadways will not release the obligation of the Operator to meet all requirements of
insurance and bonding under the Fort Worth "Gas Drilling and Production" Ordinance. Any
bond required by the Fort Worth "Gas Drilling and Production" Ordinance shall stay in full
force and effect until the terms and conditions set out in the Ordinance are met.
3. If the cost of the completing the repair is an amount of $15,000 or less, as
determined by the Director of Transportation and Public Works, cash in the amount necessary to
complete the repairs, as determined by the Director of Transportation and Public Works, may be
deposited with a bank or escrow agent pursuant to an escrow agreement acceptable and approved
by the City ensuring completion of the repair.
ARTICLE 5
MISCELLANEOUS PROVISIONS
Page 6
I . Operator understands and agrees that Operator, its employees, servants, agents, and
representatives shall at no time represent themselves to be employees, servants, agents, and /or
representatives of the City. The City shall not have any control over the means or methods by
which Operator shall perform its obligations hereunder. Operator shall furnish all equipment and
materials necessary to perform hereunder and shall at all times be acting as an independent
Operator.
2. By entering into this Agreement, the City does not waive, nor shall it be deemed to
waive, any immunity or defense that would otherwise be available to it against claims arising by
third parties.
3. This Agreement represents the entire agreement between Operator and City for
repair of roadways and supersedes all prior negotiations, representations, and /or agreements, either
written or oral. This Agreement may be amended only by written instrument signed by the
governing body of the City or those authorized to sign on behalf of the City's governing body.
ARTICLE 6.
FORCE MAJEURE
Events of Force Majeure shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot, civil
commotion, insurrection, government or de facto government action (unless caused by acts or
omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns
or work stoppages.
ARTICLE 7.
ASSIGNABILITY /CONSENT
Except as otherwise provided herein, or except as may be hereafter determined by the
parties, no party to this Agreement may sell, assign, or transfer its interest in this Agreement, or any
of its right, duties, or obligations hereunder, without the prior written consent of the other party.
Whenever the consent or the approval of a party is required herein, such party shall not
unreasonably withhold, delay, or deny such consent or approval. Operator may assign this
Agreement to any successor entity to whom the applicable Gas Well Permit has been assigned upon
written notice to the City of said assignment.
ARTICLE 8.
NOTICE
Any notice given by one party to the other in connection with this Agreement shall be in
writing and shall be by personal delivery; sent by registered mail or certified mail; or by United
States Mail, return receipt requested, postage prepaid; to:
Page 7
CITY: Office of the City Manager
City of Fort Worth, Texas
1000 Throckmorton Street
Fort Worth, Texas 76102
OPERATOR tF/l ri.- ryp -!5t- Upg,rca +,.tip
Ty 9 7ocz • Cr'7o7
Notice shall be deemed to have been received on the date of receipt as shown on the return receipt
or other written evidence of receipt.
ARTICLE 9.
MODIFICATION
No waiver or modification of this Agreement or of any covenant, condition, limitation
herein contained shall be valid unless in writing and duly executed by the party to be charged
therewith. No evidence of any waiver or modification shall be offered or received in evidence in
any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights
or obligations of the parties hereunder, unless such waiver or modification is in writing, duly
executed. The parties further agree that the provisions of this Article will not be waived unless as
herein set forth.
ARTICLE 10.
SAVINGS /SEVERABILITY
In the event that any one or more of the provisions hereof contained in this Agreement shall
for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not effect the other provisions, and the Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained in this
Agreement.
ARTICLE 11.
GOVERNING LAW AND VENUE
This Agreement shall be construed under and governed by, and in accordance with the laws of the
State of Texas, and venue for any action arising under the terms and conditions of this Agreement
shall lie in the state courts located in Tarrant County, Texas or the United States District Court for
the Northern District of Texas, Fort Worth Division.
Page 8
ARTICLE 12.
ENTIRE AGREEMENT
This Agreement and the exhibits attached hereto, constitute the entire agreement among the
parties hereto with respect to the subject matter hereof, and supersede any prior understandings or
written or oral agreements between the parties with respect to the subject matter of this Agreement.
No amendment, modification, cancellation or alteration of the terms of this Agreement shall be
binding on any party hereto unless the same is in writing, dated subsequent to the date hereof, and
is duly authorized and executed by the parties hereto.
ARTICLE 13.
WAIVER OF TERMS AND CONDITIONS
The failure of either party to enforce or insist upon compliance with any of the terms or
conditions of this Agreement shall not constitute a general waiver or relinquishment of any such
terms or conditions, but the same shall be and remain at all times in full force and effect.
ARTICLE 14.
CAPTIONS
The captions contained in this Agreement are for informational purposes only and shall not
in any way affect the substantive terms or conditions of this Agreement.
ARTICLE 15.
COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and constitute one and the same instrument.
IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this
Agreement as of the 15+ day of i -u i y , 20_ L�= .
ATTEST:
Page 9
CITY OF FORT WORTH
Secretary
APPROVED AS TO FORM
AND LEGALITY:
By: 'G
Assistant Assistant ity Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
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oa
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po By: ��iZ0040
)000° pp Assistant City Manager
sp4.C'a
FNO M &C REQUIRED
Before me undersigned notary public, on this day personally
appeared�eIrm�p �61� , the Assistant City Manager of the City of Fort Worth, Texas,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he /she executed the instrument for the purposes and consideration therein
expressed.
Given under my hand and seal of office this day of 4pri L , 20 I L.
.,
EVONIA DANIELS
MY COMMISSION EXPIRES
a; :s July 10, 2013
STATE OF '—re -,- A 5
COUNTYOF "7 1 S
Before me, the undersigned author t a Notary Public in and for the State of Texas, on this
day personally appeared L v C , known to me to be the person �(
whose name is subscribed to the foregoing instrument, and acknowledged to me t
7Page 10 OFFICITY FT.
the act of e n�e,s� l! l (the cor oration) and that he executed the same
as the act of said P� c (corporation) for the purposes and
consideration therein expressed an i the capa therein stated.
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Given under my hand and seal of office this _ day of J(�� , 201
qf�
4'6��X—NAotary Public
�lll a�PRYPOe� JANET MARIE BIENSKI(�i
1 9�e
NOTA
MY COMMI SIGN EXPIRES
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ACORD' CERTIFICATE OF LIABILITY INSURANCE 20 DATE(MMIDD/YYYY)
1[1/112 3/8/2012
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificab holder In lieu of such endorsement(s).
PRODUCER LOCKTON COMPANIES, HOUSTON N
LOCKTON COMPANIES OF HOUSTON
5847 SAN FEUPE, SUITE 320 °I "° Ext : A N.):
HOUSTON TX 77057 �oM'o°Rlss:
INSURED ENERVEST OPERATING, LLC - INSURER 0: ACF Fire U
1308143 1001 FANNIN STREET, STE 800 nderwrite
HOUSTON TX 77002 INSURER C: U
INSURER D : ACE Property & Casualty Insurance CO I -)nAQO
Kt:Vl i VN NUMBER: NNXXXXX
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INP WSR
TYPE OF INSURANCE
POLICY NUMBER
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DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES /(i W ACORD 101, Addabnal Remarks ScheduN, H more space Is required)
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SHOULD ANY OF THE ABOVE DESCRIBED POLr 4ES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
11684970
City of Fort Worth
1000 Throckmorton
Fort Worth TX 76102 -6311
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ACORD TS (2010105) 1
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* *This Bond Replaces and Supersedes Travelers Casualty and Surety Company of America
Bond No. 105073485 **
CITY OF FORT WORTH, TEXAS
GAS DRILLING AND PRODUCTION BOND
Bond No. B007039
THE STATE OF TEXAS §
COUNTY OF TARRANT § KNOW ALL BY THESE PRESENTS:
That We, EnerVest Operating, LLC, as, principal, and U.S. Specialty Insurance
Company, as surety, are held and firmly bound unto the City of Fort Worth, Texas,
in the penal sum of One Hundred Fifty Thousand and No /100 Dollars
($150,000.00) good and lawful money of the United States of America, well and
truly to be paid for the payment of which we, and each of us, hereby bind
ourselves, our heirs, executors, administrators and successors, jointly and
severally, firmly by these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT
WHEREAS, the above principal desires to drill a gas well within that
corporate limits of the City of Fort Worth and has complied with all the terms and
conditions of City of Fort Worth Ordinance No. 16986 (the "Ordinance ") of the City
of Fort Worth, Texas, and has applied to the Director of Development for Gas Well
Permit as provided for and defined in said ordinance.
NOW THEREFORE, if said principal shall fully comply with the terms of the
Ordinance, then this obligation shall be null and void, otherwise to remain in full
force and effect; provided, however, this bond is executed by the surety on the
condition that its liability shall be limited by and subject to the conditions and
provisions hereunder contained.
Successive actions may be brought on this bond for successive breaches of
its conditions or any of them; provided, however, that the total sum of all liability of
the surety on any one or all of such actions shall not exceed a total sum of One
Hundred Fifty Thousand and No /100 Dollars ($150,000.00).
This bond cannot be canceled and shall remain in effect for a period of six
(6) months after the expiration of the Gas Well Permit or until the gas well is
plugged and abandoned and the site of the well restored, which ever occurs
earlier; provided, however, any claim against this bond may be brought within two
(2) years following the expiration of the Gas well Permit or the plugging and
aband
onment of the well, whichever occurs first.
* *This Bond Replaces and Supersedes Travelers Casualty and Surety Company of America
Bond No. 105073485 **
The Surety waives all defenses with respect to notices of default, notice of
extension of time, demand and diligence, and further waives any defense related
to the City's failure to institute legal action against the Principal.
IN WITNESS WHEREOF, the said Principal and the said Surety have set
their hand and seal this the 20th day of December, 2011
EnerVest Operating LLC
(Principal)
?ark A. Houser
(Name and Title) "rc31ucnl am
C.hief Opmanq Officer
U.S. Specialty Insurance Company
(Surety)
Michele K. Tyson, Attorney -in act
TEXAS COMPLAINT NOTICE
IMPORTANT NOTICE
1 To obtain information or make a complaint:
2 You may contact your agent.
3 You may call the company's toll free telephone
number for information or to make a complaint at:
1- 800 - 486 -6695
4 You may also write to the company:
601 S. Figueroa St., Suite 1600
Los Angeles, CA 90017
5 You may contact the Texas Department of
Insurance to obtain information on companies,
coverages, rights or complaints at:
(800) 252 -3439
6 You may write the Texas Department of Insurance:
P.O. Box 149104
Austin, TX 78714 -9104
Fax No.: (512) 475 -1771
Web: http: / /www.tdi.state.tx us
E -mail: Con sumerProtection (ii)tdi. state. tx us
7
PREMIUM OR CLAIM DISPUTES:
8
Should you have a dispute concerning your
premium or about a claim you should contact the
agent or the company first. If the dispute is not
resolved, you may contact the Texas Department
of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
A VISO IMPORTANTE
Para obtener information o para someter una queja:
Puede comunicarse con su agente.
Usted puede Ilamar de numerero de telefono gratis de
la compania para information o para someter una
queja al:
1- 800 - 486 -6695
Jted tambien puede escribir a la compania:
601 S. Figueroa St., Suite 1600
Los Angeles, CA 90017
Puede comunicarse con el Departamento de Seguros
de Texas para obtener information acerca de
companias, coberturas, derechos o quejas al:
(800) 252 -3439
Puede escribir at Departamento de Seguros de Texas:
P.O. Box 149104
Austin, TX 78714 -9104
Fax No.: (512) 475 -1771
Web: http://www.tdi.state.tx.us
E -mail: ConsumerProtection (CLtdi. state. tx.Lis
DISPUTAS SOBRE PRIMAS O RECLAMOS:
Si tiene una disputa concerniente a su prima o a un
reclamo, debe comunicarse con el agente o la
companie primero. Si no se resuelve la disputa, prede
entonces comunicarse con el departamento (TDI).
UNA ESTE AVISO A SU POLIZA:
This notice is for information only and does not Esta aviso es solo para proposito de information y no
become part or condition of the attached document. se convierte en parte o condition del documento
adjunto.
POWER OF ATTORNEY
AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY
UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY
KNOW ALL MEN BY THESE PRESENTS: That American Contractors Indemnity Company, a California corporation, Texas
Bonding Company, an assumed name of American Contractors Indemnity Company, a California corporation, United States Surety
Company, a Maryland corporation and U.S. Specialty Insurance Company, a Texas corporation (collectively, the "Companies "), do by
these presents make, constitute and appoint:
Edwin H. Frank, 111, Michele K. Tyson or W. Russell Brown, Jr. of Houston, Texas
its true and lawful Attomey(s) -in -fact, each in their separate capacity if more than one is named above, with full power and authority
hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings
or other instruments or contracts of suretyship to include riders, amendments, and consents of surety, providing the bond
penalty does not exceed * * * * * * * * * * * * ** *Three Million * * * * * * * * * * * * * ** Dollars ($ * *3,000,000.00 ** ),
This Power of Attorney shall expire without further action on March 18, 2015. This Power of Attorney is granted under and by
authority of the following resolutions adopted by the Boards of Directors of the Companies:
Be it Resolved, that the President, any Vice- President, any Assistant Vice - President, any Secretary or any Assistant Secretary shall be and is hereby vested with full
power and authority to appoint any one or more suitable persons as Attomey(s) -in -Fact to represent and act for and on behalf of the Company subject to the following
provisions:
A ttoruev -m -Fact may be given full power and authority for and in the name of and on behalf of the Company, to execute, acknowledge and deliver, any and all bonds,
recognizances, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the
Company's liability thereunder, and any such instruments so executed by any such Attomey -in -Fact shall be binding upon the Company as if signed by the President
and sealed and effected by the Corporate Secretary.
Be it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating
thereto by facsimile, and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to
any bond or undertaking to which it is attached.
IN WITNESS WHEREOF, The Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, on
December 20, 2011
AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY
UNITED STATES SURETY COMPANY U.S. SPECIALTY INSURANCE COMPANY
Corporate Seals o�lvCtots OAL �aotNq
i 3 BK9voG1® � sin. .1lll Daniel P. Aguilar, Vice President
State of California ev.ti
County of Los Angeles SS:
On December 20, 2011 , before me, Deborah Reese, a notary public, personally appeared Daniel P.
Aguilar, Vice President of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and
U.S. Specialty Insurance Company who proved to the on the basis of satisfactory evidence to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
DESORM REESE
Signature lit %Gttw �, /t t { k (Seal) per• �
lot+ AngWIS County
aulconmi. Expirh Mar 18. 201
I, Jeannie Lee, Assistant Secretary of American Contractors Indemnity Company, Texas Bonding Company, United States Surety
Company and U.S. Specialty Insurance Company, do hereby certify that the above and foregoing is a true and correct copy of a Power
of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Boards of Directors,
set out in the Power of Attorney are in full force and effect.
In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Los Angeles, California this 20th day
of December 2011.
G,ro,Drate Seals !�uctotr HGNOr 1
T \..
.re..row` SEAL «;':
13ot„ I No. B007039 'SEAL ; �1 Jeauuie Lee. - ssistaut Secretar.
Agcm.vNo. 8353 •4tsmM� * ,w�' 06