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Contract 44183 (2)
J t � f 0 ROAD REPAIR AGREEMENT' BETWEEN THE CITY OF FORT WORTH AND EagleRidge Operating, LLC THIS ROAD REPAIR AGREEMENT, ("Agreement"), is made and entered into on this the 21 day of January , 2013 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 Eaglegi gOperating, T.T.0 ("Operator") for the repair of streets and/or roadways within the City of Fort 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 Publi cs. Operator shall notify the Director of Transportation and Public Works when drilling ing. operations are complete so that the Director of Transportation and Public Works can det i ` ALL RECORD repairs are required. CITY SEC 5 L VARY 02-14-13 P05:00 IN O3u935PR2 t 220VD ��o �3:0�3�!'G�Jy �'� 02- :"I 1-1 3 P02 37 IN f 2. In connection with its obligation to repair said roadways, Operator shall use materials of the same or better quality than those utilized to surface and/or repair the roadways prior to execution of this Agreement and in accordance with the current standards specifications of the City. Deviation from the materials described herein shall not be permitted without the prior written consent of the Director of Transportation and Public Works. Repairs shall be completed in accordance with standard engineering practices acceptable to the City. 3. Operator shall repair the damage to the roadways at its sole cost and expense. 4. During the term of this Agreement, Operator shall periodically inspect the roadways during drilling, fracture stimulation or reworking of 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. 2. 3. General Requirements applicable to all policies. a. The City, its officials, employees, agents and officers shall be endorsed as an "Additional Insured" to all policies except Employers Liability coverage under the Operator's Workers Compensation policy. b. All policies shall be written on an occurrence basis except for Environmental Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella Liability, which may be on a claims -made basis. c. All policies shall be written by an insurer with an A-o 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. j. Upon request, certified copies of all insurance policies shall be furnished to the City. 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. . Excess or Umbrella Liability, Five Million Dollar ($5,000,000) Excess when necessary. Page 3 4. Environmental Pollution Liability Coverage. a. Operator shall purchase and maintain in force for the duration of the as Well Permit, insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or 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. a. 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. b. $5,000,000 per occurrence/combined single limit. c. $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 s500,000 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. a. The company must be admitted or approved to do business in the State of Texas, unless the coverage is written by a Surplus Lines insurer. b. The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas State Board of Insurance or ISO, or an equivalent policy form acceptable to the City, with the exception of Environmental Pollution Liability and Control of Well coverage. 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. 1. Operator shall provide a performance bond, unless a performance bond has been provided for the issuance of Gas Well Permits 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 Permits 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. Page 5 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 14880,1agleRidgeOperating, LLC agrees to either renew the Letter of Credit or replace the Letter of Credit with a bond in the amount required by the City of Fort Worth Ordinance Number 14880, on or before 45 days prior to the expiration date of the Letter of Credit. If EagleRidge Operating, LLC 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 EagleRidge Operating, LLC is 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 completing the repair is an amount of $15,vuu or less, as determined by the Director of Transportation and Public Works, cash in the amount necessary to complete the repairs, as determined by the Director of Transportation and Public Works, may be deposited with a bank or escrow agent pursuant to an escrow agreement acceptable and approved by the City ensuring completion of the repair. ARTICLE 5 MISCELLANEOUS PROVISIONS 1. Operator understands and agrees that Operator, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the City. The City shall not have any control over the means or methods by which Operator shall perform its obligations hereunder. Operator shall furnish all equipment and materials necessary to perform hereunder and shall at all times be acting as an independent Operator. 2. By entering into this Agreement, the City does not waive, nor shall it be deemed to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. 3. This Agreement represents the entire agreement between Operator and City for repair of roadways and supersedes all prior negotiations, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the governing body of the City or those authorized to sign on behalf of the City's governing body. ARTICLE 6. FORCE MAJEURE Events of Force Majeure shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, government or de facto government action (unless caused by acts or omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns or work stoppages. Page 7 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 patty shall not unreasonably withhold, delay, or deny such consent or approval. Operator may assign this Agreement to any successor entity to whom the applicable Gas Well Permit has been assigned upon written notice to the City of said assignment. ARTICLE 8. NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be by personal delivery, sent by registered mail or certified mail; or by United States Mail, return receipt requested, postage prepaid; to: CITY: Office of the City Manager City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 OPERATOR EagleRidge Operating, LLC PO Box 191447 Dallas, TX 75219 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, iRegality, 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, 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 infor7rrational 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 _day of i(,C(.t C , 2V1 . ATTEST: city of P APPROVED AS TO FORM AND LEGALITY: By: Assistant City Attorney CITY OF FORT WORTH l��ssistant City Manager Page 10 MOW 59 T K I j STATE OF TEXAS § COUNTY OF TARRANT § Before me, the undersigned Notary Public, on this day personally appeared Fernando Costa, 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�� , 20,L�. EVONIA DANIELS MY COMMISSION EXPIRES July 10, 2013 STATE OF Texas COUNTYOF Dallas Notary Public Before me, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Mark Grawe ,known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of EagleRidge Operating, LLC (the corporation) and that he executed the same as the act of said The City of Fort Worth Texas (corporation) for the purposes and consideration therein expressed and in the capacity therein stated. Given under my hand and seal of office this �lO day of ,Tan Oaf'( , 20.LL. ""B'' EMILY KLEIN Notary Public, State of Texas My Commission Expires ";wN`E''\ February 28, 2015 Notary Public �r�l�6G�L�L� G3�GVG`3 a 0 lT C VGdfInlilaGA ��io Gi f3 ti Nq Ti Y, Page 11 CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDD/YYYY) 01 /22/2013 THIS CERTIFICATE 15155UED A5 A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTERTHE COVERAGE AFFORDED BYTHE 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 pollcy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the pollcyr certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER `'wry'~V I MCGRIFF, SEIBELS t3 WILLIAMS OF TEXAS, INC. PHONAME: 818 Town & Country Blvd, Suite 500 (AIC No, Exn: 713.877-8975 AJC. Not: 713-877-8974 Houston,'TX 77024-4549 E_MAIL__ INSURED Eagleridge Energy, LLC Eaglerldge Operating, LLC PO Box 191447 Dallas, TX 75219 COVERAGES CERTIFICATE NUMBER:GZLQU87A REVISION NUMBER: 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, INSR ADOLSUOR POLICY EFF POLICY E P LTR TYPE OF INSURANCE im WvOPOLICY NUMBER MM/DD MM/DD LIMITS A GENERAL LIABILITY EGL000014311 02124/2012 02/24I2013 EACH OCCURRENCE $ 110001000 DAMAGE TO RENTED X COMMERCIAL GENERAL LIABILITY PREMISES Ea occurrence S 100,000 CLAIMS•MADE a OCCUR MED EXP (Any one person) $ 5,000 PERSONAL 8 ADV INJURY $ 12000,000 GENERAL AGGREGATE $ 21000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 X POLICY PRO- LOC $ A AUTOMOBILE LIABILITY ECA3100264-11 02/24/2012 02/24/2013 COMBINED SINGE L MIT Ea accidents 1,000,000 X ANY AUTO BODILY INJURY (Par parson) $ ALL OWNED SCHEDULED BODILY INJURY (Par accident) $ NONwAUTOS AUTOS _ X HIRED AUTOS X AUTOONNED POPES er �IRdTYDAMAGE S Comp/Colllsion Deductible 11000 A X UMBRELLA LIAR H OCCUR EUL000012011 02/24/2012 02/24/2013 EACH OCCURRENCE $ 510001000 EXCESS LIAR CLAIMS•MADE AGGREGATE $ 51000,000 DED I I RETENTION$ 1 1$ B WORKERS COMPENSATION EWC3103105-11 02/24/2012 02/24/2013 X I WC STATU- OTH• AND EMPLOYERS' LIABILITY - ANY PROPRIETORIPARTNERIEXECUTIVE Y / N 11000,000 OFFICER/MEMBER EXCLUDED? N / A E.L. EACH ACCIDENT $ _ (Mandatory in NH) E.L. DISEASE- EA EMPLOYEE $ 11000,000 If yS describe under — DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 11000,000 C Control o1 Well JCH2O00288 02/24/2012 02/24/2013 Producing 51000,000 Producing Deductible $ 10D,000 Drilling / Workover s 51000,000 s 10,00D,000 Drilling/ WO Deductible s 150,000 DESCRIPTION OF OPERATIONS / LOCATIONS (VEHICLES (Attach-ACORD 101, Additional Remarks Schedule, If more apace Is required) The City, Its officials, employees, agents and officers are Included as Additional Insured (except for the workers' compensation policy) and provided with a Waiver of Subrogatlon to the extent required by written contract subject to policy terms, conditions and exclusions. Liablllty Is limited to the operations of the Named Insured and subject to policy terms, conditions and exclusions. General Liability, Workers Compensation, Umbrella and Automobile Liability policies have been endorsed to provide notice of cancellation to the City of Fart Worth. City of Fort Worth Planning and Development Department 1000 Throckmorton Street Fort Worth, TX 76102 CORD SHOULD ANY OFTHE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATETHEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WiTHTHE POLICY PROVISIONS. AUTHORD:ED REPRESENTATIVE Page 1 of 2 re) 1988-2010 ACORD reserved. 25 (2010/05) The ACORD name and logo are registered marks of ACORD i AGENCY CUSTOMER ID: LOG #: A� RE® ADDITIONAL REMARKS SCHEDULE Page 2 of 2 PRODUCER INSURED MCGRIFF, SEIBELS 8 WILLIAMS OF TEXAS, INC, Eagleddge Energy, LLC Eagleddge Operating, LLC POLICY NUMBER CARRIER NAIC CODE IssUE DATE; 01/22/2013 The ACORD name and logo are registered marks of ACORD CERTIFICATE NUMBER: GZLc]U87A GenerAl Liability Notice of Cancellation Wording Policy Number; EGL000014311 Transaction Number; 001 Effective Date: OZ/24/2012 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Texas Changes —Cancellation and Nonrenewal Provisions For Casualty Lines and Commercial Package Policies This endorsement modifies insurance provided under the following, including when written as part of a Commercial Package Policy: Energy Commercial General Liability Policy Energy Commercial Umbrella Liability Policy A. Paragraph 2. of the Cancellation provision in the General Conditions Section of each policy is replaced by the following: 2. we may cancel this policy by mailing or delivering to the (first NAMED INSURED written notice of Cancellation, stating the reason for Cancellation, at least 10 days before the effective date of Cancellation. The permissible reasons for Cancellation are as follows: a. If this policy has been in effect for 60 days or less, we may cancel for any reason except, that under the provisions of the Texas Insurance Code, we may not cancel this pdicy sdely because the policyholder is an elected offidal. b. If this policy has been in effect for more than 60 days, or if it is a renewal or continuation of a policy issued by us, WE may cancel only for one or more of the following reasons: (1) Fraud in obtaining coverage; (2) Failure to pay premiums when due; (3) An increase in hazard within the control of the INSURED which would produce an increase in rate; (4) Loss of OUR reinsurance covering all or part of the risk covered by the policy; or (5) if WE have been placed in supervision, conservatorship, or receivership and the Cancellation is approved or directed by the supervisor, conservator, or receiver. B. The following is added to the General Conditions Section of each policy and supersedes any provision to the contrary: Nonrenewal 1. wE may elect not io renew this pdicy except, that under the provisions of the Texas Insurance Code, we may not refuse to renew this policy solely because the policyholder is an elected official. 2. if WE elect not to renew this policy, WE may do so by mailing or delivering to the first NAMED INSURED, at the last mailing address known to us, written notice of Nonrenewal, stating the reason for Nonrenewal, at least 60 days before the expiration date. If notice is mailed or delivered less than 60 days before the expiration date, this policy will remain in effect unfil the 61 st day after the date on which the notice is mailed or delivered, Earned premium for any period of coverage that extends beyond the expiration date will be computed pro rata based on the previous year's premium. EIL2350 03 10 fndudes copyAghted maferial of Insurance Services Office, Inc., Page 1 of 1 with ifs permission. ©Berkley 011 � Gas Spedaliy Services, LLC, 2010 Automobile Liability Notice of Cancellation Wording COMMERCIAL AUTO CA02430301 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. TEXAS CHANGES -CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement, A. Paragraphs 2. and 5. of the Cancellation Com- (S) If we have been placed In supervision, mon Policy Condition contained in Endorsement conservatorship or receivership and the IL 00 17 are replaced by the following: cancellation is approved or directed by 2. We may cancel this policy by mailing or deliv- the supervisor, conservator or receiver, ering to the first Named Insured written notice S. If this policy is canceled, we will send the first of cancellation, stating the reason for cancella- Named Insured any premium refund due. The lion, at least 10 days before the effective date refund will be pro rata, subject to the policy of cancellation, minimum premium. The cancellation will be ef- The permissible reasons for cancellation are fective even if we have not made or offered a as follows: refund. a. If this policy has been in effect for 60 days B. The following Condition is added; or less, we may cancel for any reason ex- 1. Nonrenewal cept, that under the provisions of the Texas (a) We may elect to renew this policy except Insurance Code, we may not cancel this that under the provisions of the Texas In - policy solely because the policyholder is an surance Code, we may not refuse to renew elected official. this policy solely because the policyholder b. If this policy has been in effect for more is an elected official. than 60 days, or if it is a renewal or contin- (b) If we elect not to renew this policy, we may uation of a policy issued by us, we may do so by mailing or delivering to the first cancel only for one or more of the following - Named Insured, at the last mailing address reasons; known to us, written notice of nonrenewal, (1) Fraud in obtaining coverage; stating the reason for nonrenewai, at least (2) Failure to pay premiums when due; 60 days before the expiration date. If notice is mailed or delivered less than 60 days be- (3) An increase in hazard within the control fore the expiration date, this policy will re - of the insured which would produce an main in effect until the 61st day after the increase in rate; date on which the notice is mailed or deliv- (4) Loss of reinsurance covering all or part eyed. Earned premium for any period of of the risk covered by the policy; or coverage that extends beyond the expira- tion date will be computed pro rata based on the previous year's premium. CA 02 43 03 01 ©ISO Properties, Inc., 2000 Page 1 of 1 Automobile Liability Notice of Cancellation Wording IL 83 27 03 11 ENDORSEMENT - NOTICE OF CANCELLATION TO THIRD PARTIES TH15 ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following; COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL LIABILITY UMBRELLA COVERAGE PART COMMERCIAL OUTPUT PROGRAM COMMERCIAL PROPERTY COVERAGE PART SCHEDULE; le of Persons) or O Blanket as required by written contract Per written contract (If no entry appears above, Information required to complete this 5chedula will be shown in the Declarations as appllcabie to this Common Policy Conditions -Condition A, Cancellation, is amended iv include the following: Notice of cancellation will be also be provided to the person(s) or organization(s) listed In the schedule above, THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY IS WRITTEN. IL 83 27 03 11 Includes material copyrighted by Insurance Services Office, Inc., with Its permission Page 1 of 1 Umbrella Notice of Cancellation Wording Policy Number: EUL000012011 Transaction Number: 001 Effective Date: 02/24/2012 THIS ENDORSEMENT CHANGES THE POLICY. PLEA5E READ IT CAREFULLY. Texas Changes —Cancellation and Nonrenewal Provisions For Casualty Lines and Commercial Package Policies This endorsement modifies insurance provided under the following, including when written as part of a Commercial Package Policy: Energy Commercial General Liability Policy Energy Commercial Umbrella Liability Policy I11 L� Paragraph 2. of the Cancellation provision in the General Conditions Section of each policy is replaced by the following: z. WE may cancel this policy by mailing or delivering to the first NAMED INSURED written notice of Cancellation, stating the reason for Cancellation, at least 10 days before the effective date of Cancellation. The permissible reasons for Cancellation are as follows: a. If this policy has been in effect for 60 days or less, WE may cancel for any reason except, that under the provisions of the Texas Insurance Code, WE may not cancel this policy solely because the policyholder is an elected official. b. If this policy has been in effect for more than 60 days, or if it Is a renewal or continuation of a policy issued by us, WE may cancel only for one or more of the following reasons: (1) Fraud in obtaining coverage; (2) Failure to pay premiums when due; (3) An increase in hazard within the control of the INSURED which would produce an increase in rate; (4) Loss of OUR reinsurance covering all or part of the risk covered by the policy; or (5) If WE have been placed in supervision, conservatorship, or receivership and the Cancellation is approved or directed by the supervisor, conservator, or receiver. The following is added to the General Conditions Section of each policy and supersedes any provision to the contrary: Nonrenewal 1. WE may elect not to renew this policy except, that under the provisions of the Texas Insurance Code, WE may not refuse to renew this policy solely because the policyholder is an elected official. 2. If WE elect not to renew this policy, WE may do so by mailing or delivering to the first NAMED INSURED, at the last mailing address known to us, written notice of Nonrenewal, stating the reason for Nonrenewal, at least 60 days before the expiration date. If notice is mailed or delivered less than 60 days before the expiration date, this policy will remain in effect until the 61 st day after the date on which the notice is mailed or delivered. Earned premium for any period of coverage that extends beyond the expiration date will be computed pro rata based on the previous year's premium. EIL2350 03 10 Includes copyrighted material of Insurance Services Office, Inc., Pege 1 of 1 wfth its permission. ©Berkley 011 &Gas Specialty Services, LLC, 2010 CITY OF FORT WORTH, TEXAS GAS DRILLING and PRODUCTION BOND THE STATE OF TEXAS § COUNTY OF TARRANT § Form Date of-o9 Bond No. SU13818 WHEREAS, persons performing gas drilling and production operations within the jurisdiction of the City of Fort Worth, Texas are required to execute and file with the City of Fort Worth Gas Inspector a bond covering those operations, pursuant to § 1541 of the City of Fort Worth City Code; WHEREAS, the Principal named below is the operator of certain Railroad Commission of Texas and City of Fort Worth regulated gas drilling and production operations including but not limited to, (1) operations permitted under the Principal's permit filed with the City of Fort Worth Gas Inspector, and/or (2) any additional wells that may be permitted prior to the expiration of this bond; WHEREAS, the Principal desires to perform gas operations and activities within the jurisdiction of the City of Fort Worth, and which operations and activities must be carried on in full conformance with all conditions of the ordinances of the City of Fort Worth, including those city ordinances requiring operators to plug and abandon all wells and control, abate, and clean up associated with an operator's gas operations and activities; WHEREAS, Principal acknowledges and agrees that, due to the acquisition of additional wells, it may be required during the effective term of this bond to provide additional financial security beyond the face amount of this bond before additional permits submitted by the Principal will be accepted and approved. We, Eagleridge Operating, LLC (person's name) as Principal, and Aspen American Insurance Company as Surety, duly authorized and qualified to do business in the State of Texas, are held and firmly bound unto the City of Fort Worth, Texas in the sum of One Hundred Thousand and 00/100 Dollars ($ 100,000000 ) payable at the City of Fort Worth, Tarrant County, Texas, and for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. This bond is conditioned that if the Principal operates all wells in accordance with the ordinances of the City of Fort Worth plugs and abandons all wells and control, abates, and cleans up pollution associated with its gas operations and activities in accordance with the ordinances of the City of Fort Worth and is in full compliance with the all the regulations of the with the ordinances of the City of Fort Worth, the Road Repair Agreement and any permit issued pursuant thereto and shall repair any damages to City streets, as determined by the City's Director of Transportation and Public Works, caused by the equipment and vehicles used by the Operator in going to and from the drill site with such repairs being in compliance with specifications therefore prepared by and provided to the Operator by the Director of Transportation and Public Works; then the Principal and Surety are relieved of their obligation to pay the bond amount to the City of Fort Worth. In the event of a failure of Principal to comply with the conditions and obligations of this bond, the Surety shall promptIy remedy such non-compliance, in accordance with the ordinances of the City of Fort Worth within 60 days of notice of non-compliance. In the event of surety's failure to remedy such non-compliance, written demand shall be made upon surety for payment of the penal sum of this bond. Sums demanded under this bond shall be paid to the City of Fort Worth at 1000 Throckmorton Street, Fort Worth, Texas, within thirty days after receipt of written demand for payment, which demand shall be mailed by registered or certified U.S. mail to the address shown below. Conditions and obligations under this bond are construed in accordance with the Road Repair Agreement and all permits, rules, and regulations of the ordinances of the City of Fort Worth, including any amendments thereto that may be made during the term of this bond, and Surety waives notice of any amendments. The City of Fort Worth shall have the right to sue on and otherwise enforce the obligations of this bond without first resorting to or exhausting its remedies against the properties and assets of the Principal. (over) This bond is effective beginning on the 21st day of January , 20 13 . The term of this bond shall expire 6 months after the expiration of the Gas Well Permit or when the gas well is plugged and abandoned and the site of the well restored, which ever occurs earlier, provided, however, any claim against this bond maybe brought within one (1) year following the expiration of the Gas Well Permit or the plugging and/or abandonment of the well, whichever occurs first. Obligations to pay part or all of the bond amount are deemed released after one (1) year from the expiration date of the bond if no non -compliant operations or activities subject to the bond have been discovered by the City of Fort Worth or the Railroad Commission of Texas during that one-year period, and no enforcement action against any operations or activities subject to the bond is pending. Principal and Surety may also be relieved of their obligations to pay part or all of the bond amount by written agreement between the City of Fort Worth, Principal, and Surety. If the bond amount is not paid in accordance with the terms of this bond and if judgment for any part of the bond amount is awarded through any court proceeding, then the City of Fort Worth shall be entitled to court costs and reasonable attorney's fees awarded by the court. Surety's liability for such costs and fees shall not be limited by the amount of this bond. It is agreed and understood that this bond is executed and performable in Fort Worth, Tarrant County, Texas, and venue for any cause of action construing this bond is in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas. A transfer, by any means, of any well covered under this bond does not relieve the Principal and Surety of any obligation under this bond until the operator acquiring the well has on file with the City of Fort Worth an approved form of financial security covering the well. The transferred well remains covered by this bond and the Principal and Surety remain responsible for compliance with all City of Fort Worth regulations and ordinances covering the transferred well until the City of Fort Worth determines that the well is covered by proper financial security and the acquiring operator has assumed full responsibility for the well in accordance with all city regulations and ordinances. Obligations to pay part, or all, of the bond amount, as a result of the Principal or Surety's non-compliance with the conditions of this bond that occurred prior to the transfer and assumption of responsibility by the acquiring operator, remain enforceable in accordance with the general terms of this bond. IN TESTIMONY WHEREOF, said PRINCIPAL has hereunto subscribed his or her name or has caused this instrument to be signed by its duly authorized officers and its corporate seal to be affixed this i.� — day of 20��. IN TESTITNY WHEREOF, said SURETY has caused this instrument to be signed by its duly authorized officers and its corporate seal to be affixed this 21st day of January 20 13 (seal) (seal) Eagleridge Operating, LLC NAME &TITLE Aspen American Insurance Company SURETY (ATTACH POWER OF ATTORNEY) Maria D. Zuniga, Attorney -in -Fact NAME & 175 Capital Boulevard, Suite 300, Rocky Hill, CT 06067 SURETY'S FULL MAILING ADDRESS ASPEN Aspen American Insurance Company 175 Capitnl Boulevard, Rocky Hill, CT 06067 POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, THAT Aspen American Insurance Company, a corporation duly organized under the laws of the State of Texas, and having its principal offices in Rocky Hill, Connecticut, (hereinafter the "Company") does hereby make, constitute and appoint: Joseph R. Aulbert; Marc W. Boots; P.T. Osburn; Maria D. Zuniga; Vickie Lacy of McGriff Seibels & Williams, Inc. its true and lawful Attorney(s)-in- Fact, with full power and authority hereby conferred to sign, execute and acknowledge on behalf of the Company, at any place within the United States, the following instrument(s) by his/her sole signature and act: any and all bonds, recognizances, and other writings obligatory in the nature ofa bond, recognizance, or conditional undertaking and any and all consents incident thereto, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. All acts of said Attorney(s)-in-Fact done pursuant to the authority herein given are hereby ratified and confirmed. This appointment is made under and by authority of the following Resolutions of the Board of Directors of said Company effective on April 7, 2011, which Resolutions are now in full force and effect; VOTED: All Executive Officers of the Company (including the President, any Executive, Senior or Assistant Vice President, any Vice President, any Treasurer, Assistant Treasurer, or Secretary or Assistant Secretary) may appoint Attorneys -in -Fact to act for and on behalfof the Company to sign with the Company's name and seal with the Company's seal, bonds, recognizamces, and other writings obligatory in the nature ofa bond, recognizance, or conditional undertaking, and any of said Executive Officers at any time may remove any such appointee and revoke the power given him or her. VOTED: The foregoing authority for certain classes of officers ofthe Company to appoint Attomeys-in-Fact by virtue ofa Power of Attorney to sign and seal bonds, recognizances, and other writings obligatory in the nature ofa bond, recognizance, or conditional undertaking, as well as to revoke any such Power of Attomey, is hereby granted specifically to the following individual officers of Aspen Specialty Insurance Management, Inc.: Michael Toppi, Executive Vice President, Scott Sadowsky, Senior Vice President, Mathew Raino, Vice President, Scott Mandeville, Vice President and Ryan Field, Assistant Vice President, This Power of Attorney may be signed and scaled by facsimile (mechanical or printed) under and by authority of the following Resolution voted by the Boards of Directors of Aspen American Insurance Company, which Resolution is now in full force and effects VOTED: That the signature of any of the Officers identified by title or specifically named above may be affixed by facsimile to any Power of Attorney for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the naturethereof, and any and all consents incident thereto, and any such Power ofAttomey or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon die Company. Any such power so executed and certified by such facsimile signature and/or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking so executed. IN WITNESS WHEREOF, Aspen American Insurance Company has caused this instrument to be signed and its corporate seal to be hereto affixed this 3rd day of October, 2012 Aspen American Insurance Company STATE OF CONNECTICUT SS, ROCKY HILL e L'is COUNTY OF HARTFORD Scott adowsky, Senior Vice President On this 3rd day of October, 2012 before me personally came Scott Sadowslry to me known, who being by me duly sworn, did depose and say; that he/sh Vice President, of Aspen American Insurance Company, the Company described in and which executed the above instrument that heJshe knows the seat that the seal affixed to the said inst r rnent is such corporate seal; and that he/she executed the said instrument on behalfof the Company by authority of his/her ab 'be Resolutions thereof. a L d `G : Notary Public ,boy My commission expires:// i0 CERTIFICATE ,., O� '•;'�' N 1, the undersigned, Scott Sadowsky of Aspen American Insurance Company, a stock corporation of Vie State of Texas, do hereby certify that the foregoingPowerk ofAttomey remains in full force and has not been revoked; and furthermore, that the Resolutions of the Boards of Directors, as set forth above, are now and re in full force and effect. Given under my hand and seal of said Company, in Rocky Hill, Connecticut, this 21 st day of January 2013 Name: Scott Sadowsky, Senior Vice President * For verification of the authenticity of the Power of Attomey you may call (860) 760-7728 or email:Patricia.TaberQaspen-insurance.com r i CITY OF FORT WORTH, TEXAS GAS DRILLING and PRODUCTION :)ND THE STATE OF TEXAS § COUNTY OF TARRANT § Form Date of-w Bond No. SU13819 WHEREAS, persons performing gas drilling and production operations within the jurisdiction of the City of Fort Worth, Texas are required to execute and file with the City of Fort Worth Gas Inspector a bond covering those operations, pursuant to § 1541 of the City of Fort Worth City Code; WHEREAS, the Principal named below is the operator of certain Railroad Commission of Texas and City of Fort Worth regulated gas drilling and production operations including but not limited to, (1) operations permitted under the Principal's permit filed with the City of Fort Worth Gas Inspector, and/or (2) any additional wells that may be permitted prior to the expiration of this bond; WHEREAS, the Principal desires to perform gas operations and activities within the jurisdiction of the City of Fort Worth, and which operations and activities must be carried on in full conformance with all conditions of the ordinances of the City of Fort Worth, including those city ordinances requiring operators to plug and abandon all wells and control, abate, and clean up associated with an operator's gas operations and activities; WHEREAS, Principal acknowledges and agrees that, due to the acquisition of additional wells, it may be required during the effective term of this bond to provide additional financial security beyond the face amount of this bond before additional permits submitted by the Principal will be accepted and approved. We, Eagleridge Operating, LLC (person's name) as Principal, and Aspen American Insurance Company as Surety, duly authorized and qualified to do business in the State of Texas, are held and firmly bound unto the City of Fort Worth, Texas in the sum of One Hundred Fifty Thousand and 00/100 Dollars ($ 150,000.00 ) payable at the City of Fort Worth, Tarrant County, Texas, and for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. This bond is conditioned that if the Principal operates all wells in accordance with the ordinances of the City of Fort Worth plugs and abandons all wells and control, abates, and cleans up pollution associated with its gas operations and activities in accordance with the ordinances of the City of Fort Worth and is in full compliance with the all the regulations of the with the ordinances of the City of Fort Worth, the Road Repair Agreement and any permit issued pursuant thereto and shall repair any damages to City streets, as determined by the City's Director of Transportation and Public Works, caused by the equipment and vehicles used by the Operator in going to and from the drill site with such repairs being in compliance with specifications therefore prepared by and provided to the Operator by the Director of Transportation and Public Works; then the Principal and Surety are relieved of their obligation to pay the bond amount to the City of Fort Worth. In the event of a failure of Principal to comply with the conditions and obligations of this bond, the Surety shall promptly remedy such non-compliance, in accordance with the ordinances of the City of Fort Worth within 60 days of notice of non-compliance. In the event of surety's failure to remedy such non-compliance, written demand shall be made upon surety for payment of the penal sum of this bond. Sums demanded under this bond shall be paid to the City of Fort Worth at 1000 Throckmorton Street, Fort Worth, Texas, within thirty days after receipt of written demand for payment, which demand shall be mailed by registered or certified U.S. mail to the address shown below. Conditions and obligations under this bond are construed in accordance with the Road Repair Agreement and all permits, rules, and regulations of the ordinances of the City of Fort Worth, including any amendments thereto that may be made during the term of this bond, and Surety waives notice of any amendments. The City of Fort Worth shall have the right to sue on and otherwise enforce the obligations of this bond without first resorting to or exhausting its remedies against the properties and assets of the Principal. (over) This bond is effective beginning on the 21st day of January , 20 13 . The term of this bond shall expire 6 months after the expiration of the Gas Well Permit or when the gas well is plugged and abandoned and the site of the well restored, which ever occurs earlier, provided, however, any claim against this bond maybe brought within one (1) year following the expiration of the Gas Well Permit or the plugging and/or abandonment of the well, whichever occurs first. Obligations to pay part or all of the bond amount are deemed released after one (1) year from the expiration date of the bond if no non -compliant operations or activities subject to the bond have been discovered by the City of Fort Worth or the Railroad Commission of Texas during that one-year period, and no enforcement action against any operations or activities subject to the bond is pending. Principal and Surety may also be relieved of their obligations to pay part or all of the bond amount by written agreement between the City of Fort Worth, Principal, and Surety. If the bond amount is not paid in accordance with the terms of this bond and if judgment for any part of the bond amount is awarded through any court proceeding, then the City of Fort Worth shall be entitled to court costs and reasonable attorney's fees awarded by the court. Surety's liability for such costs and fees shall not be limited by the amount of this bond. It is agreed and understood that this bond is executed and performable in Fort Worth, Tarrant County, Texas, and venue for any cause of action construing this bond is in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas. A transfer, by any means, of any well covered under this bond does not relieve the Principal and Surety of any obligation under this bond until the operator acquiring the well has on file with the City of Fort Worth an approved form of financial security covering the well. The transferred well remains covered by this bond and the Principal and Surety remain responsible for compliance with all City of Fort Worth regulations and ordinances covering the transferred well until the City of Fort Worth determines that the well is covered by proper financial security and the acquiring operator has assumed full responsibility for the well in accordance with all city regulations and ordinances. Obligations to pay part, or all, of the bond amount, as a result of the Principal or Surety's non-compliance with the conditions of this bond that occurred prior to the transfer and assumption of responsibility by the acquiring operator, remain enforceable in accordance with the general terms of this bond. IN TESTIMONY WHEREOF, said PRINCIPAL has hereunto subscribed his or her name or has caused this instrument toto D gned by its duly authorized officers and its corporate seal to be affixed this �� day of 20_ [.F . IN TESTIM Y WHEREOF, said SURETY has caused this instrument to be signed by its duly authorized officers and its corporate seal to be affixed this 21st day of January 20 13 (seal) (seal) Eagleridge Operating, LLC AL NAME & Aspen American Insurance Company SURETY (ATTACH POWER OF ATTORNEY) Maria D. Zuniga, Attorney -in -Fact NAME &TITLE 175 Capital Boulevard, Suite 300, Rocky Hill, CT 06067 SURETY'S FULL MAILING ADDRESS Aspen American Insurance Company f75 Capital Boulevard, Rocky Hill, CT 06067 POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, THAT Aspen American Insurance Company, a corporation duly organized under the laws of the State of Texas, and having its principal offices in Rocky Hill, Connecticut, (hereinafter the "Company")does hereby make, constitute and appoint: Joseph R. Aulbcrt; Marc W. Boots; P.T. Osburn; Maria D. Zuniga; Vickie Lacy of McGriff Seibels &Williams, inc, its true and lawful Attorneys) -in - Fact, with full power and authority hereby conferred to sign, execute and acknowledge on behalf of the Company, at any place within the United States, the following instruments) by his/her sole signature and act: any and all bonds, recognizanees, and other writings obligatory in the nature ofa bond, recognizance, or conditional undertaking and any and all consents incident thereto, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. All acts of said Attorneys) -in -Fact done pursuant to the authority herein given are hereby ratified and confirmed. Tltis appointment is made under and by authority of the following Resolutions of the Board of Directors of said Company effective on April 7, 201 i, which Resolutions are now in full force and effect; VOTED: All Executive Officers of the Company (including the President, any Executive, Senior or Assistant Vice President, any Vice President, any Treasurer, Assistant Treasurer, or Secretary or Assistant Secretary) may appoint Attorneys -in -Fact to act forand on behalfof the Company to sign with the Company's name and seal tivith the Company's seal, bonds, recognizances, and outer tivritings obligatory in the nature ofa bond, recognizance, or conditional undertaking, and any ofsaid Executive Officers at anytime may remove any such appointee and revoke the potiver given him or Iter. VOTED: The foregoing aulhorityfor certsinclasses ofofficers oflheCompany toappoint Attorneys -in -Fact by virtue ofa Power of Attomey to sign and seal bonds, recogni�ances, and other writings obligatory in the nature ofa bond, recognizance, or conditional undertaking, as well as to revoke any such Power of Attomey, is hereby granted specifiplly to the following individual officers of Aspen Specialty Insurance Management, Inc.: Michael Toppi, Executive Vice President, Scott Sadowsky, Senior Vice President, Mathew Raino, Vice President, Scott Mandeville, Vice President and Ryan Field, Assistant Vice President, This Power of Attorney may be signed and seated by facsimile (mechanical or printed) under and by authority of tltc following Resolution voted by the Boards of Directors of Aspen American Insurance Company, wliicli Resolution is now in full force and effect: VOTED: That the signature of any of the Officers identified by title or specifically named above may be atTixed by facsimile to any Powerof Attomey for purposes only ofexecuting and attesting bonds and undertakings and otherwritings obligatory in the nature thereof, and any and all consents incident thereto, and any such Power of Attomey or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon dte Company. Any such power so executed and certified by such facsimile signatrireand/or facsimile seal shall be valid and balding upon the Company with respect to any bond or undertaking so executed. IN WITNESS WHEREOF, Aspen American Insurance Company has caused this instrument to be signed and its corporate seal to be hereto affixed this 3rd day of October, 2012 Aspen American Insurance Com ny STATE OP CONNECTICUT � � . n SS. ROCKY HILL cr(�L(9Z;�! COUNTY OF HARTFORD Scott adowsky, Senior Vice President On this 3rd day of October, 20t2 before me personally came Scott Sadowskty to me kno�m, who being by me duly sworn, did depose and say; that he/ Vice President, of Aspen American Insurance Company, dte Company described in and which executed the above instrument; thathefshe knows the seal that the seal atiixed to the said instnmtent is such corporate seal; and that he/she executed the said instrument on behalfofthe Compatty byauthority of h is/her ab 'Le Resolutions thereof. . 7 ---� . _ "� � ��ei_. £. Notary Public `i �r My commission expires: j /�//ofd// � i r{' CERTIFICATE 1, the undersigned, Scott Sadowsky of Aspen American Insurance Company, a stock corporation of the State ofTexas, do hereby certify that the foregoii of Attomey remains in felt force and has not been revoked; and furihetmore, that the Resolutions of the Boards of Directors, asset forth above, are notiv and in full force and effect. Given under my hand and seal of said Company, in Rocky Hilt, Connecticut, this 21 st day of January 2013 Name: Scott Sadowsky, Senior Vice President "For verification of the authenticity of the Power of Attomey you may call (860) 760-7728 or email:Patricia.Taber©aspen-insurance.com