HomeMy WebLinkAboutContract 28354E%H�BIT �•F•'
RQAD RE�ATR AG�Ll►�IENT
BETWEE�I
T�IE CIT°Y 4F FO�T WOI�i`H
AND
t�;l�°Y �(��'G���]'�{��Y �r1/C/y{�} �-
R,JI�i�•� � i+ S�� •�'Y � i. .�/� `� ��:�
Four 5evens Operating Co., Ltd.
This �aad R€�air A���sne,xt, (Agreexne�t), is mad�; aa�d �aax�red into an t}us th� z2ndday
of Januarp , 2DQ3, by ar�d betw���t thc City af �'ost' 'V�o�th, T�ras {"Cit�'}, a home Y�xi�
munici�al coxp�ratioz� of �h� State of Texas, 3a��t�d within Ta�rant �nd A�nnten Caunfi�, �°e��s
(H�r��ina.fic� z�f�xx�d to as th� "Ci�'� �ld Four se�rens Dpera�ing Co. , Ltd. ,�iFpp�rata�'�
far the p�pai� o� ��in ste�ets ��or �oadways wi�in th� �iiy of Fort W�rt�, Texas as mox� fi�l1y
d�s��it�ed h�r�in.
W�iER.�,A�, ��a�tor is :in th� bu�in�ss o� dt�iling ga� w�l�s and, in coxu��ti�n th��wiY�i,
sh�ll be �nga��d in dralIin� arid productior� a��ivities an p���zty kn�w� g�eraliy �
Fossil Hi11 Lease ��1 FOSSll HZIl We11) � w]��;� ablits, is ada&C�rit to, 817c�1e� i.s
acce�sed by zoadway� within th� oCiiy of ��r�t Waz�ii; axtd
W�REAS, use af �� madways by th€ 4p��atar for th� purpos� a� pe�'vrrming th�
activiii�s des�rib�d he�einabov� niay cause daz�age to th� roadways; an�
WHEREAS, th� City a.�d (3p�atox, f�r th� mat�al �onsid�r�tion h��inaft�r stat�d, ����r� to
��.�ar �in#o this Ag�r�e�tx�ent ior� Op�arato� i� pe.pair said roac�ways fflr tii� d�zai�as af the te�m of #I�is
Agr��merit in cansid�ratiou� �f Cap�atar's us� of s�id roadways fa�c the ��s� o� tia� ��ti�iti�s
describ�d h�reinabove; '
IT IS �V�W TT�ItEFQRE ,AG�F,ED'1'HAT:
A,�i"I�i� 1.
I�EPAIR QBLIC'a,A�IOP�
1. Operat�r sh�l �epair d�n�g�s caused by Operafia.r or its �.o�,trac�ors, subcantracto�rs,
ezrz�t�y�e�, and a�e�ts, �atciuding ordinary w�ar and t�a*, if any, to z•o�dr���rs th�t abat th� a�v�-
d�s�aribed pra�e�ty b�ing ��� by ���ato� fax th� c�l�in� �,n� p�c���6tian o�g� wells ��us�t to a
�as ►�il�ll Pennit issu�d to Ope��►tor. '�h� �epair obligatian ��a�il cantin�e �v�n if th� ��ss W�ll
Permit is a.��nd�d ta allaw f�� t�� d�il� vf addi�innal �s v�r�11s. This abIi,ga�ioR shs]i ca�t���
dux�zag th� ��� of this Agr��m€��, ar�d. Qpe�rat�r s�al�, prio� to th� t�rmin�tian ai this Ag�ruae�.t,
as �rovid�d h�rein. r�pai� su�h dama�es io such rc�adwa3+�, exc�ud��g or�a�y w�ar a�d t�, i�
azxy, to th� cond�ition in whick� si�ch r��dways cxist�d pria�r ta th� �x��.tion af �kiis A���nen#.
OpeYatar shall �tt�ke a videota�e o�' such �v�tdw�ys prior to the statt ef Operatca� dt�illin� and
operation of its g�s wells and slaa.l� pra�id� a�o�y �� the vid�t�p� ta t�e Di���tor� ��
Tra�s�c�r���ion a�,d Pu�iic tiVorks. Ogexatvr sha11 not�fy th� Directer af T�anspo�qi�n �xd Publi�
Worlcs when driiling or� fra�in� operations aze camplet� sn t��ti the Dir��t�r o� Tr�sportatio� aixd
Puhlic VV'arks ca� ��t�in� i�'x�p,a�rs are r�q�ire�.
a. in cann�ctic�n witia its ab�igati�n ta r�p�ir said m�dw2.ys, Op�seo� s�ll us�
r�naterial� o�' �� �ar�.� o� ��te�x q�ality �han thos� u�li�ed �� s�f�ce a8dl�� ��pair th� znadways
�, : - . , -
���i . ���I� �
�E
�, . � ,.
prior ta executi�r� of t1�i� ���€�neant and in $ccordatice r�,�ith th� curr�nt s�a���rds s�ecifi�atiens �f
the �ity. �3eviatio� from r�i� m�te�als d�s�ribed laerein shatl not �e p�mi�d v�rifiho�� tb�e p�or
wt�tten cc�nsent of'tbe DiP��tar ����anspo�ttation and P�ab�i� V�o�ks. R�ai;s sha1l b� cam�l�t�c� Y�
accardan�� wiih stand�d �ngin�ring p�ctices a�ceptable tv th� City.
O��r�tor �hall re�a�i�r the daxnage ta th� madways �t i�s �v1� cost �nd �x�ense.
4�. Du�in� th� �t�rm. af this Agreern�n�, Opsx�tor shall p��e�i�aliy�in�pe�t t�x� r��dvv�ys
�urur�� d�illin�, fraci�re st;imulat3ian or reworldng of �e ga� w�ll t4 d�t��min� wh�th��r or no� any
darmag� has occurr�d a� a result of Op�r�tor's a�i�viti�s. Immediately �n �is�ov� th�
existence of any ��li c�r,xag� tu th� �a�ways, O�e��.tor shaIl ut�d�r�� ta �ep�i� an�/�� z�m�dy
same. Upan discavery af d�nnag� by �e Qperrato�, th� Oper�tc�r will have 4$ ha�r� to c�nta�t #h�
Director of '�aans�nr�a�inn �d Fubl�c 'Wo�ks to waark o�t a scla�dul� of repa�r�. Repauirs shall take
p�ace withia 30 days ar irr�me.di�t�3y i� th� damag� �,fE�ct� tia� imrratediat� h�altli and s�.fety af
indavzd�als.
.ARTI,CLE z.
TE�1Vi OF AGREE�N'�'
Yhis A��m�t sh�1l commen�e upoa �� d�te indi�ated �bov� and �la�ll contis�� in full
force and �f�'�Et until Op�tor h�s compieted and/a� p�rman�ntly disc8ntin�d t�i� activities upon
the roadways, a� d�s6rib�d h�x��bove.
.ARYICL� 3.
Il�ISiiRA1�7'CE �PTD �]�1!l�INN'Ti�
Th� �g�'ator s1a�12 pruvid� or .ca�.se to be p�ovided th� ir�urane� d�scribed b�low for
ea�h w�ll u�nl�ss � Gra� �T�li ��a,xit ha� be�n issu� wh�it� such insur�ce h�s b��a provid�d f��
t1�€ iss�a�n�� o£ tk�� �� jN�ll P€xmi� under tk�� t�rms and candiiions d�s�ribed in txi,� �'o�i �iorth
`°�'ras �nlling an� Pr�duction" �rdrnan�� and s�,�h ir�ur�ce ta c�ntivau� �ntil t�e w�11 i�
aba�d�n�d and th� si�� �sto�d.
In additi�z� ko t��e b+�nd or i�tter of �r�dit res�ui�d �w�s�a�at t� thi� A,��rn�nt axi� th+� �o�t
y+i�z�th "Gas Dz�1lin� �nd ���u��ion" ardinanc�, the �p�atar shall c�y a poli�y or polici� �f
insurax�c� issued by au ins�n�� c;sam�at�y or co�npanies auth��ia�d to d� busin�ss in T�zx�-s. Ia t��
ev�ni suci� insuzaz�c� po�i61r �r pali�ies are ean�ell�d, th,� G� W�lI P�mi� sh�l b� �uspend�d on
such d�t� of ����ilation �d th� O��ra��r's right t� o��ate und�r �.6h Gas Well Pe�mit �ha1i
immediately cea�e until the Op�.ratof �Ies additi�nal inswranee a� provided h�rein.
l.. Gez�eral Requiremeu�t�s app�icable to all golicies.
a '�'h� City, i�a o�'ici�ls, �rnpl�y��s, ag�nt� a�d oificers �11 � en�o�ed as an
".P�dditia�nal visw���."' ta al1 pca�xczes �xce�t Employ� Liabxlity �overage �nd�r th�
�perator's �iurkc�s ��m�e�sa�ian poli6y.
b, AI1 palici�s �ha�l i�� wtitt� an a� a��en�� ba�is exc�t f�r gneiranm�ntal
Ps��uti�n T.i�;biti�y (Se���� aAd P�li��i�n ���ver�g�} aa�� ��c�s c�� �'�b�lia
Liability, whi�h may �� an a cla�ms�mad� ba�is.
p�ge Z
! --- -- � � : _ . � - � - : - ._. .
�. A11 pc�lica�s 5haI1 b� wr�itten hy an insurer wi�h an A-: Si17I vr beiter rating by th� most
c�rrent v��esYoa o:F th� �. M. B�st �ey Ra�in� Guide e� wi�h su�1� ���� fis�ancially
sc�und insurana� ��iers �cc�table to ths City.
d. D�duEtibles shal� b� list� an the C�t�ific�te of Ins�at��� and sl�al� be on a"peY
occur�et�ee"'ba�is �ess oth�rwis� shp�I�t�d k�erein.
�. C�rtifi�at�s �� Insuran�� shaZl b� delivexed ta th� Gity s�f For� �iT��th, D�v�lapinent
��an�n�t, 1 Q00 'Th�o�kmo�ton �tr�et, Fnrt w�rtls, i'ex�s 76102, �vidcacing alI r1�e
xeyuir�d c�v��a��s, zncludirng endox�ements, prior t� th� issu�uu�e af ���,.s i�Tell
P�rrni�.
f All polici� shall bc �nd��s��, with a waiv�r o� subro�i�n p;t�vidi�g �i�hts af
recov�xy in ��ar aff th� City.
g. t�y failu�e an �a�t o� the �ity �o r�quest r�ui�ed insuranc� dac�m�ntati�n sh�ll not
constitut� a wai�+er �af the zt�a�ce z�qtair�ment sp��ified h�r�in.
h, �eh �aeli�y s}�all b� �d�rsed to �r�vi�� th� Ci�y a minimu� thiz�y��sy s�tic� �f
c�n��ilat�on, non�r�newal, �7C�ldI Ii1S��i'i�1 6�iSII�� 1S �iE]I3C�f ���II18 al' GCIY�Y���. A��n
days notic� sl�l b� accep�bt� iz� the evcnt a#'nvn paym�nt o�p�miam.
i• D� thc t� of thc Cr�s W�11 P�muit, tb� Op�rator sh�li ��or�, in a�imely mar�n�c,
r� the �x�s ins���tvr any krrinwn l�ss a��u�'�nce whi�h cou�d �w� fls� to a�iability
�i�im or law��it ar which cot�td result in a prop�rty l�ss.
x, iJpon r�quest, c�rt%f��d copi�s af all insuzance �olicies sha�� b� f�rnish�d ta the City.
�. S�nd�rd Com�m�:rcial [���eral Liability I'�licy.
T�is co�€rage zn�t includ� p�emis�s, operatianis, b�owout or �xpl��i�n, products,
�o�tpl�ted op�atirms, sudci�: and �cci��ntal �ollutian, blank�t �on�raetual li�lailitY,
und�r�rau�nd �esour��s d�rnage, broad fnrm p�op�rty damag�, ind�p�nd�nt �on�to�s
prnte�t�v€ liability ar�d p�rsonal injwry. I"hhis cav�rag� shatl be a m�ni�num Carnban�d Sin$lc
Limit �f $1,�Od,400 p� occutrence fox Bodily Inj� and Prap��r �ama��.
3, ��cces� ar Uronbre�ls� %i�i�ity
� 5,00�,0�0 F.��cc �s, i� th� pp�rato� h,�-s a sta�d�alone Envi�on��ntal Pg1l��ia8
Lia.�ili�y (EP�) palicy.
� 14,fl(ia,�00 _ Ex��s, i� tli� �perata� does nafi harr� a s�and-�l�n� ��, palicy. .
��v�rag� must inci�ci� an endor�ement f�r sudd�n �r a�id�ntal
�ollution, �f S�epag� and Poll��ion cav�age is written �n a"c1�m�
m�d�" �asis, th� pp�xator must rnainfun �aatinuaus c�v�ar�g� �nnd
pu�h�sc �xt�nded Cov�rag� ��-iod �n�ur�nc� �h� n�6�ssa�y.
4. �Va�°���s �ornpe�s�tion a�nd �mp��ye�s L��b�lify �ns��an�e
�. Wark�zs ��p�n�ti�n la�ne�ts shail b� Tex� 5t�at�.���► Lirnits.
b. Employers Lia�iili�r snal� b� a minim�n of �SOO.OQU p�r �cc's��nt.
c. ���h c�v��age �hal� inclt�de a w�iv�r of submg,�tion ir� f�vorr o£ the �ity ar�� prov�id�
�ove�age in a��apd�a�� with �ppliE�b1� St.�,t� �d �ed�ral l�ws.
5. �.���r��ibi�� Li�bxl��ky I���rsnc�
a. �vmbx��d 5i�gl,� Li�it a�f S],,000,000 pe� �ccnn�n� fQ�r �vdily �n,�wy ar�d �rop�ty
D�nag�.
b. Cov�r�g� xnust anclu�d� a�l o��, iu��d �cd �ot-owned �tem��iZcs.
P�ge 3
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b. Ce�i'rfl����s o� ���n�r�a�e
a. �e �omp�n�r �usf� b� a�dmitt�d �r ap�xvved to �o b�sin�ss �n th� 5#atc af 'I"�s�s,
ux�less �.e c��r����� is written by a Surpl�s Lines insuu��r.
b. 1°h� insur�anc� s�t f�rth by t�x� ins�tce cvsnp�y must �� urrld�iwPitt� o� f�rn�s
�t hav� ve�,i ap�rov�d by th� T�xas S�a�� ��aYd of Ins�.rau6e or ISO, or an
�$t�iva]ez�t p�li�y fortn a��ptabl� to the City.
c. SEts gar� �iZ �Saarsem�z�fs aai�, zz�su�a6� cov�ag� ac�Qraling to requzr�ment� �nd
ins�tctior�s �ontained h�in.
d. ��a11 sp�cif �a11y set �n� th� n�tic� ot �celiation, te�m��natioz�, or ci�ang� in
�ov�rage pPv�isic�ns to th� Ci�y. A�1 polici� shall �ie endor��d �o xead "�ZS
POI.,TC�' VVILL 'RT07C �� CANCT�LLED pR Nt3N R�1�`W�D WT�i8T3T 30
DA►YS A�?�'AT�tCFD �RiT��N NO'TIC� T� T�E ��R �R1D TH� Cii"Y'
�XCEFT V�N 'I�3I5 POLTCY �5 BFTi1T� �ANC��� gOk �aNP�Y�T
8F P1�EMIUM, IN WHICH CAS� IO DAYS �D�T�,N�E ih1R�'�"�°El�f IRi���,C� IS
R�QUIR�D".
�. D�gina� �ndors�n�nts �f�cti��g cov�x�g� requir�� by this s��ion sball b� fiu�ish��
wit�i �� certific�� af ins�a��e.
i. The cancella�ion of �uy a�sura�z€� fa� titi.� sol� purp�s� of th� rega�r vf z��dways w�ill n�t
r�lease th� �bli�a#�on of th� C3p�ratar #o m�t all req�irr�n�t� o� insuxa�� �nd �andin�
und�� th� Fart Vda�th "Ga� Dritling �d Ppaducti�n" OYdin���.
S. Operr:toz shall au� h�re�y da�s ifld�mnify, d�f�nd �d save ha�nl�ss th� �ity, i�s affx��s,
ag��s a�d e�xitplvy�e� frem all suits. a�tions �r cl�ims o� any chara�ter, n�rrie aynd
des�ri.pt�on �rough� .�or o� on account of any injwnies or c�mag� r��iv�d � sustain�d by
any persnn, p���ons or p�ap�y on accaunt oi the op�r�tion� af the Op�ratox, �ui� ag�nts,
�ploy��, eontxactos� or st��eantractars; or on ac�ount af ar�y negligmt a�t of f�ult gf th�
�p�rata�, his ag�ts, empl�ye�s, contractoxs ox s�b�nt�a�ter� in can�zeciion v�ith t�re
obligations ��nd�r �1iis P��ad R�pair A�r�exir��nt; at�►d shall pay any j�dg��nt, wi�ri cnst�,
w�i,ck� m�y be obtaine� a�ainst �h� �ity �rowisig aut aisa6h injury or dam���.
t1R'TI��� 4.
PERF�RNiAN�E �(�NDS
1. O��r�tn� s1�11 p�ov�ide � per�'��anc� �aad, �ualess a perfvrmanee band has b�n.
�rovid� f�� thg iss�.ce c�� � Gs� W�1 P�mii aand�r �� t�� �d condi�i�s d�ss��b�d in ���t
Warrth °`Gas ��Zing aaxd P��ductir►�" �rdinaz�ce�, �n an� a�noun� n�t 1� th�n th� arno�eu�t n��ss�y
to repai� the roadways, as d�t�r�nin�d by the City Dir�to� �f Tran�goxtalion �d Public �i'�rrls�.
2. Pziar to th� be�,ing �u� a�tivity pur�uant � the issuan� �f a Ga� W�ll P�rmi�,
ual�ss a per�'armgnc€ band has been g�vvsded fa� ih� issuance of � Gas We31 P�zm�t �an.d�r �i�
texms and �onditions ci�;scribe� in th� F�rt War�: "G� Drillin� � Pm�ucti�n" Of�i��n��,
Ope�toY shal! grovid� th� Gas 3nsp�ta� with a s��u�ity insts�unent ia th� farrx� of � band ar �a
i�ev�eaa�Ie l�it�r of �Y�.i� �s f�llows:
Page 4
a. �c�md. ,A i�ond skta�l b� ex�cut�d by a Pelia�1� bon�iz�� o� insur�c� instit�:�i��
a��io��d ta da �usrness� a�a T�x�s, acce�tah�e ta €]se City. 'Th� bond sball l�ecame �:�f'�tive
an ar b�for� the dat� t��� Gas �el� Permzi is issuea and sl��ll remain in for�� �� �#�e6� �'o�
at le�st a per�ad af six (�s) mo�ths aft�r th� �,pir�at��n of th� Cas Well.��r�it t�n a� un�3
�lie w��1 is p1�,gg�� as�d �bando�n�d �oa� the �ii� is resto�°esi, whichev�r uccurs �st, Th�
OQe�tar sha11 b� listed a� priz�cipai ancl th� i�s�ent shall ruuti to th� City, 2�.s obligee, a��
shal� be condi�son�� that th� �perator will �omply with rhe t�rms au�d reg�lafivn� of this
�zdxna�c and tk��� �zty. T1�� o�iginal bond shal] b� submirted t� th� �i��ctor vf
Trans�a�tatian �.d P��1ir, Wez��s with �. c�py of the sam� provid�d t� th� City Sur+et�°y
and th� Gss Lr�pec�a�, �
b. L�tt� of C��dit. ,� ��rt�p af cr�dit sh�ll �� i�ue�. by a r�liable 1�anlc �ut;���ed to dg
busin�ss in Tex� an�d sh�i be,com� eff�ctive on or be�a� �h� �at� th� Caas �V'eI� F�nxt is
iss��d. Th� lett� o?f cr�dit shalX ��snain i� f�rc� a�d �#%ct f+�� �,t l�ast a��ri�d o.� six (6)
mrrrz�s �eP the ex�i�tiar� sf th� G� W�ll k��naii te�. �'h� City s�rall �e aat�iori��d to
�aw �,p�n s►a�h I�ttter of c��dit ta r�cover any �ir�es or penaities ass�s��l u3xd�r �i�
ardina�,c�. Evid�nce of t�e ex€c��iora of a��tt� of crr�it shal� b� submitte�d to �e ��tar
o� Transpor�iian and Pub1z� 1Na�ks su�nuttii�g an o�iginal sign�d I�tter a� 6���.t fr�am ��
ban�ng in�fit��on, 'w�th � c�py a�' th� sazr�� pravid�d ta th� City S�creta�r �d t� �
Inspector. If the �,�t�r vf C��dit is f�r a�ame pexi�d l�ss ��n ��li�� o� �rh� w�ll as ��i�d
by Ordut�7t�� 1lT�a��' 1�$�Q,�rour 5evens �g��e�s"� ��'r r��nr th� b�t��r �f Cr�d%t c�r
replace the i.�t�r o�" +CY�dit with a bo�ad in th� amaucat x�uare�d by the �ity of F�fi �T�rkh
�z�diazau�c� N�mb�� �.4880, an n� be#'ax� �45 ciays prioc �a t19.� �xpiratian� d�tc o�th� L�tt� of
Cr.edit. If Fo�T sevens ��ils to d€�iver ta th� City of Fa� Wo�h �ither the �aewal T,�t��
of C�redit ar repla�ex��nt �iond ir� �tc �ppropriat� ann�u�t on o� �e�'�re 4S d�ys pri�r fio ihe
expir�#ic�n d�t� of #h� T�ttc� oi C��dit, th� City af Fart Warth rnay d���+ tk►e entir� f���
am�u�t �� th� atf�ch�d Let�r� of Cx�c3it to k�� held by th� Czty of Fort �T�rt1� as sec�xri�y #'or
Fo�r sevens �neTati.ng Co !�u �7�if0�,$I1GC Of Iig O�']Zi,g1�SqY15 �ilf'�PrI' UIC�IIIBIICG NL��3� ��$HQ.
c. Vlih�n�v�r th� Gs� �eetar o;r t%e �ire.cctor af Trarssgortation and P�a�li� �ork�
De�ac�neiat fiad� kh�at a d+,f��lt has o�curxad. in th� perfv�narace �f �y r��ui���nt �e
co�dition impased by this Agreement, a written n�ti�� si�all b� �iv�n tv �eratv�'. �u�h
noti�e s1�ai1 s�s��i.fy t�� w�Pk to bg dane, th� �s�ated c�st and #he p�iad �f tim� c�e��d
by the Ga� in.cpector or � I�'��tor of Tran��ortatior� arjd ��li� v�►���s I)�arr�n�nt to be
reasenahiy nec�ssa�y �t t�i� campl��ion nf svch wo�k. Aft� ��6�ipi o� su�h noti��, th�
Ope�ator �ai�, witbin the tim� th�r�in specx���, eit�i�z° �aus� ar r�quire th� worl� to b�
p�r£urmed, ar fazIin� tc� do so, shall pay av�r to th� City ane h�dred �uv�nty��tv� ���nt
{��S%) vf th� �s�irr�a#ed ccsst o�f dai�� the work �s ��e £�rth in th� n�ti�e.
d. �'h� City sh�.0 b� auEhornz�d ta draw ag�inst �ny i��vr�ca�le 2ett� nf c�e�dit a� bond
to rec�ver such amvunt du� frvr�n Op�rator. Upoz� �r�eipt gf s�.�h moni�, �� Cify sh�ll
proc�ed by s�ch mod� as dee��d cunv�i�nt to �a�� ih� r�qui.r�d wor� � b� p�or��$
s�d compl�ted, but so li�i��ty �ha1i b� iz�cu�cd o�h�r tb.a� %� t� �xpendit� of said sum
is� hanc�..
�. �n �h� cv�xt O�er�t�� d��s nvt �aus� th� waric ta b� ��rf�r�n�d �d ��iI� o� ��fuses t�
��y av� ta th� City t�� �st�mated c€�st of �h� wa�k ta b� �lon� as s�t forYh �in th� nati.c�, �r
Page S
the issue� af the securiiy anstr�rn�t ��f�ses to honor any draft by �h� City against fih�
���Zicabl� �evac;��i� I��tex uf �edit or ban�d the City may prac��d to abt€�r�� c�m�li�n��
and abatc the ��f��it �y w�y o.f 6ivi� ���ion a.gairnsi �pez�atar, oz� by c�imi�a� a�iian, ag�inst
fihe �pera.to�, or by iaoth su�h rr��t�,ods,
t Tk�� Cancel�atio.� �f any bond o� l�tt�r of cr�dit for th� sol� pur�os� a#' t�� ��air of
raadways will not ral�� th� o�li$a#aon of the �pe��o� tc� m�t �11 ��quir�at�nts ��
ins�rance a�d honcli�g �d�r th� Fa�t i�vprth "�as Arnilling a�d Frod�ction"' Ordin�n�e. Any
band r�q�uired �y t�e �or� �orrtki "G�s �ri�lia� and P�v��a��ion'" i�rdin�nc� sk�all ��y in fiall
f��ec� and e,�ffe�# �a,x�il th� t�rms and conclitiAns s�t oLt in 4he �n�c� ar� m�fi.
3. Ir' fhe cost flf th� ca�pl�ting th� rr�pair is a� a��unt of $15.OQ� or l�ss, as
det�ni��d by �h� i�ire�tor of T�sp��Ya�[�n �d Pul�lie VlTark�, c�h � the a�nnunx n��ssary 40
complet� �th� �pairs, as dete,rmin�d. by th� �i��tore vf T�sportaoti�n ar�d �abli6 �Vc�rks, may be
d�vsited wxth a bank or e�c�eow agent g��suant ts a.n �,scr�rn� ag���r�n�nt a�ai�bl� �d appfov�d
by t�Ze City ens�i�xg cnmgl�tion ��fih� t��r,
A� i ICLE 5
��.SCEL�ANEOUS P1�QVISIQ�'S
1. Operatnr ut�3�rsta�ds an�i agz��s that Qpe�ator�, xts �rrn�l�y��s, s�zv�t�, a&�n�s, �d
r�pr�sentativ�s ahali at no �m� r�r�s�nt themsclves to be �rnpiey��s, ��*an#s, agent�, a�ad/o�r
r�p��s�tativ�..c of thr� City, The City sha11 not �av� a�ay e�ni�ol over th� rrn�ans a� �t�thoc� by
which Opera�x sha�] p�rf�u�n �ts nb�iga#ions he��und�rr. �eratoY shall fumi�h all equu�m�nt ��
marerials r�ecessary tn perform 'h�reunder and shall a� al� t'sm� be �ting as �u znd�aend�n�
O�erator.
�. By �te�ing �nto this 1�.g��ment, the Ci�y dues rtot waiv�, x�or shall it b� d�med to
wa�ve, any irnmtani.ty or de:f�� t3�at w��ld oth�is� �e �vailable tg it against cZaims a�iz�g by
thiard �arti�s.
3. This Ag���m�nt re�g�r�sents t�e en�� a�ire�m�,nt b�r+�►e�n �3perr�,�ir aaid �i�y ��
r�pai� vf roadway� and s�g�x�ed� all p�ior n�goti�ti�ans, ��r�s�ntati�ns, a�d/or agr��n�n�, �it�h�
writt�r� �� ora1. �iis A��ent ��y b� amended only �iy w�i�t� �����,r,�,t �i�� by tl��
�ov�rning bady o:� �e Cx�r or �has� �.��ho�;z�. ta si�u a� ben�lf of �h� ei��+'s gov�.i,ng 1�ody.
t�TTCLE 6.
�ORC� M�AJ�URE
Lvents �f �or�e M����°� shalx mean �y �ar�ting�ncy ar caus� b�y�nd �,he ��na�l�
contra? a�g a patty incl�ding., withaut ]�imitation, acts af God ox the p�1�lic �n�r�ny, w�, rio� 6ivi1
co�am�tion, in��rection, �av�ent or dc f�acto gave�nent a�ti�n (�n1��s ca�s�d by �ets o�
omissi,ons vf th� P�Y), fi�ees, explosions, rsin or ath�r w�ath� d�l��r�, flao�, stri�ces, s��wdovvras
o� w�rk stapp�,g�s.
�RI°ICLE 7.
�SSI�RTAB�ITI'ICQNSEI+3'T
���� �
�xc�p# as o�i�is� �rovided h�sezn, or except as may �e }��r�a#}� d�te�nin�d by th�
partics, no ��y to �ii,s A�qr�m.�r�t ma.y s�ll, assi�, o� t��sf� iis intcYest in t�rus A,g�re�m�n#, vr a�y
o� i� right, d��,�s, �� o�iligatiaris .l���und�r, witho�t �� prior writt.�n �ans�t Q£ th� othcr P�Y-
Whenever the eoxas�nt c�Y th� ap�roval of a party is Pequiz�d h��r�iny s��h party sha.11 nat
unreasonab�y withh�l�, a[etay, or deny �uch consent ar �pproval. �e�ator m�y �ssign this
.Pdgxecme�t to �y successor er�ti�,y to whorr� th� app�icat3l� G�s W�ll Pe�mit �as b�� as�i�aed upor�
wri�ten natYc� tn ihe City t�f said assignrz�ent.
AR�'ZCIdF �.
NOTIC�
Any noti�� giv�n by oa� �art'y t� th� att�er an csnn�iion with thi� Ag�reexn�at st�ail h� �n
w�iti�g and shg11 be by p�rson�l d�Iiv�ry; s�t by r�gist�� maiI or certrti�ied mail; �Y by �nrt�d
Stat�s ��ii, r�t�xr� r�e�ipt r�q�s�t�d, gostage p��a�d; tv.
C�Y: �ffiae af�� City �an�ger
City of�or� Worth, Texa,R
xfl4(p Throckma�on Street
Fort Wo�h, T�xas 7610�
����T�� E�' Sevens Oneratin� Co ., Ltd.
777 Taylor St., Suite I090
Fort Worth, Tezas 7�102
Natic� s�iall b� d�rze.d to �av� b��n rec�ived an the dat� o� re��ipt �s �,ho�rn. ar� the r�t�n r�c�ipt
or oth�r writ�en �;�id�nce vf r��i�r�
ARTZCL� 9.
�to���e�Tro�v
Na waiv� a� rr�odification of �his A�e�ment �r o� any c�vena�t, c�nditi�n, liuu�ation
hereis �ontain�l sh�,[l. b� valid �iess i�a wz�itin� a�ud du�y ex�c�t,�d by the p�y to be ����d
tkierewith. No €�+id�� �f any v�raive� or �adifieatiAn sh�11 be oi�'�ci �r r��i�v�d in �vid�n�� �n
an� g�c��dirsg axising bet�u►e�� tin� pa�ties her�to out o� ar �ffe�tin� this 1�gr�em�n� or t�� ri�h.ts
dr �bl�gativz� o� �1�e p�rti�s h�und��, un�ess such waiv�r ar. xnndificati�n is in w�iting, duly
�x�cufea. T'he parrei�s :furth�:r �gr�� r�h�t th� �ra�isioris vf tius Ar�icXe �r'rll not b� waived �nl��s as
h�x�fn s�t foz�. '
AR�TCLE � Q.
S,�V INGSISEV�RABII.ITY
In the �v�nt #ha1: any one v�� mar� o� th� pr�visxvns h�r�ai r�antained �n tlais A�e�m�xi sl�all
for any raa,sor� be h�ld to b� �n�r�id, i11��a1, or unenfor�eabl� in ar��r resp��t, su6h in�ati�sty,
illegal��}r, o� �ncnforceability �al,l not �#���t the oth�� ��avisious, ��i th� Ag�reern�nt sla�ll be
Ci7�St7ll� �S lf 5'LbC�1 IIiV�ilE�, 11����1�, o� �n�nf�r6�able prov�isx�an had nev�r b�� 6an�i�� in tbis
Agr��m�n�.
�a�e �
ART�CLE I1.
GOV�PLN'IlVG LAW AND VEI�TE
�'his Agr���nt shal� be c�nstru�i under �d �ovem�d by, �d �n. �rdaac� with the Iaws af ths
Stat� of Texa�, and d�ue for a�3i acti�n �i.sing und�r t�e t�ns artd �nr��itions oftl�i� ,�gr�m�nt
shall 2xe in the s�#e �ut°� loc��� in Tat�'�t �atu�iy, T'exas or th� Unit�d States �3i�tzi�t ��� �'A�
the Noxthezn �is'tti�i of T€xas, �ort V�o�'ih I3ivisio�.
�4,RTIC�E 12.
�NTTRE AG�EN,�EN�'
'x'his A�r��ment �d th� �;achibits a#ached the��to, constit�xt� th� en�r� ag�re�m�� ,�m,�ng #h�
parti�s h�r�to w�th resp�t to th� s�bj�t m�tter h�re�f, and supeYs�d� a�y p�ar und��ta�din�s ��e
written o� eral �����nts ��1,wee� th� paxti�s wit�i r�s���t to the s�a�j�ct m��t�r ai� this A��rt�nt.
No �mernc�n�� maclifi�atian, c�ncell�tiaa er �lteratia� af t}te term5 of �his A���1t Sh�1l, be
bin�ing o� any �a�.y' h�eeta uni�ss th� sam� is in w,�tir�g, da��d subsequ�n� t� t� d�t� hez�nf, a�ad
is d�Iy ��thoriz�d. and �xe�ut�d by th� pa�i�s h�reta
ARTICL� 13.
WAIV�R l"�F iERMS Al� CONDiTZQNS
�'1�.� %i��re af eithe� pariy to ea�for�ce ap insist upon ca�gliance with any af the tern�s �z
conditivns nf this A,gr�er�emt sha.11$at consti#ute a g�neral waive� or reln"nqr�islrim�nt n#' a�y such
terms oz� 6aaditinns, b�t the �am.� s�iall b� and renaatin at �ll times i� ful.� f�r�� a�d� �f%ct,
AR�'ICL� 14.
CAPTTONS
Th� eaptions cnntain�d in #�is Agreern�t a.�� for informat�vn�.l purpes�s or�y and shall not
in anX way af%ct t�� substaz�tive fi�ms or eon�,itions of tlzis A���mment.
ARi'I�LE X5.
CC3tJi�T�'�RPAR�'S
This Agr�eznent �ay b� �x�cut� iri a�ny numb�r �f rc�utxt��a�rts, es�h o�w�axch sh�ll �e
d�ezned ari o�i�nal, �d cor�tit�.�� on� a�d �ki� sa�.e i�.��zn�n�.
1N WITNE55 4F, th� �'es d� h�eby a.#'fiu� thei� �ignattues and �nt�- intc� this
A�re��aent a� of th� d��' da� af _,_-�-� __ ,�0�-
ATT��'�':
��������t� ; -_
��} , � �,_. ��`�c�Q (� - _ ,
Cvnt���t Au�tao�s i ��ti�on
GZ�°�f ClF FQit,'i WORT�
�y. ��� �' .
'"� a�y da�k�s � :n, City NIa���er
Page $
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.��Rp� As ro Fo,�,r
� ��GALITY;
���d x�t�, c��y �rr�,�,�y
By�����- ,
�-
s��r� o� �x�s
CO�Y 0.� T�� §
�'
C3�e�aror �
Larry D;�.B�ogdon
Foru Sevens Operatfng Co,, Ltd.
B�faz�� tx��, fh� und�,csx
the �ity Ma�ag�r o� �e C2 �� ncst�,r3, �ubIi�, an �is daY .P€xsonall '
subscri bed io �' �f ��r� W�, ��xas, ,�vwra �i me to b� ��PP�a��i G�Y J�Icsvn,
th� for�goi�� uas���� ar�� acl�o�+►�ed Per�n v�rhos� �,� is
'�trrun�nt �'oz� the pupposes �c� c�nsider�#ion t�erein� � �� �a m� t�'�� ��/s�� ��out�d ttge
x�ressed.
Giv�� �nda° mY �s�ad and se�I a�nf�E� this daY af
-_..�.
No#a�y pt�bli�
ST'A� 0� x�s �
C�UNT�oF_�� §
_ ., §
, �0
B�fvr� �ie, th� und�i�n�d �uthnxity, a Not�r �ui�li� iz� a�d for the Sta�� af' �°exa�, on this
�ay persanal�y appea��d _ L�RRY �. BROGDON
whase n�rne is subscr�bed to the fare�ain� snstr�m�nt, �ci ack�awl ged to mmthat th��saxn��w�
the a�t �� FOUR SEVLNS OPETtATING� Co. , LTD: (ti7e cor�oration) an� that h� �x�uted �la� sa�c
as the act of s�id �nuR s�v�xs or��xa��G co. , Lxn. (corparabi�n) far the p�p�s�s �nd
�or�sideratiar� th�r�in expx��s�� an� i� th� ��pacity th�r�in sta��d. —
Given r�nd�� �y han�l �n� �eai �� flff�� this z2rmday! of ��Ar.tY f,
r �+•�� pe� �D�� � - � �
� ���'�y��"�� e•` o ` - �, :
� � .,�� �., o �. _�,l =--�t�_� `� ��
: r �� No�aty $ubli�
� : �
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o�� /y� s ��. • ` � �a
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���� m
BILL ADAMS
Fresident
City ofFort Worth
1000 Throclrnnaz'tan �treet
Fort VVarih, TX 7G 102
Dear Sir or Madam:
January 24, 2003
This Letter of Credit represents a replacement of t11at certain Letter of Credi� dated
Dece�nber 16, 2002.
Texas Banlf ("Ba1�k") hereby establishes an IYrevocable L�tter of Credit ("Creclit") in
favor of the City of Fort Worth (`Beneficiary") for a sum not exceeding the aggregate axnount of
Fifty Thousand Dollars ($50,000.00}. These funds shall b� made available by Beneficiary's
drafts drawn on Banl� ai 300 �Vest 7`�' Streei, Fort Worth, TX 76102 (ar such a�1i�r address that
Bank inay provide Beneficiary with writteii ilotice of in tha fuhire) anci accompanied by the
signed wi-itten statements or documents indicated below. Draf�s and said sign�d written
statements and documents must be presented to Banlc during regular business hours, on any
Business Day, only in person, by �nail, or by express delivery service. `Busiizess Day" means any
day on which ba.i�l�,s located zn Fort Worth, Texas, are not autharized or required to close.
1, Draft Terms �nd Canditions. Bank shall honor the draf'ts submitted by Beneficiary
under the following terms and conditions: (a) presentation of the original Credit (as inodifi�d
Uelaw} to Banif; (b) a sigrled statement of Beneficiaiy (witn signature notarized ) statulg that �'aur
Sevens Operating Co., LTD ("Four Sevens") has failed to hollar their cont�actiiral agreement wit��.
the City of Fort Worth, Texas witl� regard to # 1 Fossil HiII We11 as required by Ordinance
Numb�r 14880 or the City of Fort Wortll Road IVlaintei�ance Agreeinent to which Fati�r Sevei�s is
a Party. Since this Credit inay be in effect for a period that is less than the period that the #1
Fossil Hi11 Well may be in existence, for the purpase af suUpart (b) of the foregoing ierms and
conditions, Beneficiary may draw upo1� the fi�ll amount oi credit available under tlus Credit i�
Four Sevens does not obtain a renewal ar• exte�lsion of this Credit ar a replacement Co this Credit,
in each case in an amnunt not less that $50,040.00, oi� oi• before 45 days prior to Expiration Date
of this Credit {as same may be ex.te�ided fro�n time to time). Provided t�at Beneficiary strictly
comp�ies witll aIl �enns and condifions as set fartla above and as otherwi�e p�-escribed in this
Cr�dit, Bai�l� sl�all �iot dishanor �iy drafis subinitted by Beneficiaiy ui�less {i) ihe draft is
suUmitted after t11e E�piration Da�e ar (ii) the full a�nount af Cr�dit available iuider this line has
Ueezl dxawn,
(Re�ised 5/28198)
30(� Wetit Seventh St. Fort Warth, Tex�s 7b 102 (S 17) 85C1-OOS4 Fax (817) 85Q-0059 E-Mail: bii[.adams@texasbank.com
Upon Bank's hoi7or o� such drafts a�d payment to Beneficiary, Ban1c, oiYce tl�e firll
amount of credit available under this Ct•edit has been drawn, s11aI1 be fully discharged of its
obligations trilder this Credit and shall not thereafter be obligated to inake any further payments
tilzider this Credit to Beneiiciary or ai�y other person or entity. Beneficiary s1�a11 have no recourse
against Ba�zlc for any amouiit paid under this Credit a#ter Banlc honors any draft or other
dacument which complies strictly with this Credit, and which o�l its face appears othervvise in
order but whieli is signed, issued, or presented by any party or under the natne oF any party
pu�parting to act for Beneficiary, purpai-ting to cla.im through Beneiiciary, or posing as
Bene�'iciaiy. Beneficiary sha11 retunl to Banl{ any funds received by Beneficiary in excess of tl�e
Credit's maximum drawing a�nount.
2. Use Restrictians. A11 drafts rnust be marlced "DRAWN LJNDER IRREVOCABLE
LETTER OF CREDIT NO. S88 DATED Deceinber 16, 2Q02." Only Baneficiary may complete
a draft and aceom�anying statements or documer�ts required by this Credit and malce a cl�aw
zmder this Credit. Partial draws are pennitted ttnder this Credii. 7f partial draws are permitted
under tlus Credit, a copy of this Credit must accompany each draft with the original Credit
accompanying the final draft. Ba.nk's honor of draft shall autoznatically reduce the amount of
credit availab�e under this Cradit by the amount of the draft.
3. Expiration Date. This Credit shall expire {"E�t�iration Date") uporl the earlier of
90 days fiam date for First Production which date will be provided by ihe natural gas pt�rchaser,
anci alI dxafts and accoinpanying stateinents or docuinei�ts mttst b� presented io Baillc on or
be�are f�xat date and �ime; or {bj t�1e day tllat Bank hox�ors a draw under wl�ich the full amount of
this Cr�dit is drawn.
4. Assignment or Transfer. Tl�is Cr�dit shall be nontransferable, except for: (a) a
transfer by diz-ect ageration o�1aw to the original Beneficiary's administrator, a�acutor,
iaax�l�ltptcy truste�, receiver, liquidator, successor, or ather r�preseiltatives at law; and (b) tlle
�irst iininediaie transfer by stich legal represei�iative to a third party after �xpress approval of i1�e
applicable governrnental body (judicial, administrative, ar executive).
5. Timing ai Dishonor. To the extent not prohibited by law, BanIc s�iall be eirtitled ta
honor or disl�onar a��y draft strbmitted in connectioi� with tllis Credit witl�izig five (5) calendar
days not col�nting the day Banlc rec�ives the draft. Alt�iaugh Bank sha1l be entitled to honor a
draft subsequent to the Expiration Date, Beneficiary shall not be e�titled ta submit a draft or
provide Banlc with any documeilts in support of a draft after the Expiration Date. If Banlc fails ta
malce payment on the appropriate payment date because of an Act of God or other act beyand the
control of Bai�lc, the amount of th� payment will automatically be iiicreased by a d�ily amauut o�'
interest equal to the per dien� rate thai is derived froin the Prime Rate set forCh in Th.e Waid Street
.Iourncal frain tune to fime, as applicable, for each day ihat tlie payi�ent is delayed and Bank's
solc; obligatian a�1d liability shall be to malce ihe payment due tagetlier with the additio11a1 interest
computed as provided above.
C�. Modifieation. This Credii sets fortll rn fu11 tlie tarms of Baa�lc's undertalciilg. A
(Revised 5/28/98)
Irr�;vacable Letier of Credit
Page 3
inodification or waiver of any of Bank's or Beneficiary's obligations or rights tulder this Credit
inust be contained in wz-iting signed by Ban�e. A waiver on one occasioii sl7ali not constitute a
waiver an aiiy other occasioiz.
7. Compliance Barden. Under no circ�unstances shaIl Bank b� i1e1d res�ollsibla for
any impassibility or other difficiilty in Beneficiary achieving strict cornpliance witll the
requirements of this Credit. Beneficiary understands and acl�nowle�lges that {a) unless and uutil
the present wording of this Credit is arnendad with Banlc's prior written consent, the burden af
coinplying stricfily with such wordillg remains solely upon Beneficiaiy, ax�d (b) Banlc is relying
upon the lack of sucl� amendnlent as constituiing Beneficia�y's ii�itial and continued approval of
sueh wording.
8. Non-Severability. If any aspect of this Credit is evei- declared unenforceable for any
reasoll by aily court or goveinnment l�ody havi�xg jtirisdiction, Ban�{'s entire engageinent tuider tlus
Credit s11a11 be deemed null and void, and both Banlc and Beneficia.iy shaIl Ue restored to the
position each would have occupied with all righ�s availabje as though Lhis Credit had never
occl�rred. This noiz-severability pravision shall override alI other provisions in this Credit, na
matter where such provisioil appears vwi�hin the Credit's body.
9. Choice of LawlJurisdictiou. This Credit shall be governed by the laws of �he Stat�
of Texas to the extent zlot gaverned by f.he Uniform Customs and Practice for pocumei�tary
Credits (1993 Revision}, Intarnationai Chamber of Coirunerce Publica�ion No. SQO, a�d to ih�
extent such Iaws are nat inc�nsistent with tlae ierms of this Credi�. VENUE OF ANY
LITIGATION INVOL'VING THIS CREDIT MU�T BE MAINTAYNED IN A COURT OF
COMPETENT .�URYSDICTION LOCATED IN Tarrant COUNTY, TEXAS, WHERE
THIS CREDIT IS PERFORMASLE.
Sincerely,
T AS AN
—�-�.�
W. H. Adarns,
President
(Revised 5128/98}
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