HomeMy WebLinkAboutContract 28379EXHIBIT ��E"
ROAD REPAIR AGREEMENT
BETWEEN
THE CITY OF FORT WORTH
AND
.TOINT RESOURCES COMPANY
�IiY ���R(�i/�R�' � r�
�ONi�3A�T � o - �- � ��1�
This Road Repair Agreement, (Agreement), is made and entered inta on this the 28th day of
Jat�uary, 20�3, by and between the City af Fort Worth, Texas ("City"), a home rule municipal
corporation of the State of Texas, located within Tarrant and Denton Counties, Texas (H�reinaftex
referred ta as the "City") and Jaint Resouxces Company, a T�xas corporation("Operator") for the
repair of certain streets and/ox rnadways within the City oi �ort Worth, Texas as more fully
described herein.
WHEREAS, Operator is in the business af drilling gas wells and, in connection therewith,
shall he engaged in drilling and production activities on property known. generally as Beard Lease,
which abuts, 15 �.C�jSC�Tli t0, and/or is accessed by roadways within the City of Fart Worth; and
WHEREAS, use af the roadways by the Operatox for �he purpose of performing the
activities described hereinabove rnay cause damage to the roadways; and
WHEREA�, the City and Operator, far the mutual consideration hereinafter stated, desire to
enter into this Agreement for Operatar to repair said roadways for th� duration of the term of this
Agreement in consideration of Operator's use of said roadr�a�+s for the pur�ase of th� activities
described hereinabove;
IT IS NO W THERE�'ORE AGREED THA.T:
ARTICLE 1.
REPAIR OBLIGATION
1. aperator shal� :repair damages caused by Opera�or or its contractars, subcontractors,
employe�s, and agents, excluding ordinary wear and t�ar, if any, to xoadways that abut the above-
described property being used by Operatar far the drilling and produc�ion of gas wells pursuani to a
Gas Weil Permit issued to Opera�or. The repair obligation shall continue e�en if the Gas Well
Permit is amended to al�ow for the drilli.ng of additzonal gas wells. This ob�igation shall continue
during the term of this Agreement, and Operator sha11, prior to the terminaiion of �his Agreement,
as provided �.erein, repair such dar�ages to such roadways, excluding ordinary wear and tear, if
any, to the condition in which such roadways existed prior to the axecutivn of this Agreement.
Operator shall make a videotape of such roadways prior to the start of Operatar driIling and
operation of its gas wells and shall provide a copy of the videotape to the Director o�
Transportation and Public Works. Operatar shall notify the Director of Transpartation and Public
Works when drilling or fracing operations are complete so that the Directox o� Transportation and
Public Works can determine if repairs are �equired.
2. In connection with its obligation to repair said roadways, O�r ����-�� ���h,�,lt ���-
ma�eria�s af the same ar bette� quality than those utilized to surface andlor re�ti�i.r t��� ��.�d��a•�-r,�
� � �
prior to execution of this Agree�nent and in accordance with the current standards specification5 of
the City. Deviation froan the materials described herein shall not be permitfied without the prior
written consen� of the Director of Transportativn and Public Works. Repairs shall be completed in
accordance vvith standard engineering practices acceptable ta �.e City.
3. Operator shall repair the damage to the roadways at its sole cost and expense.
4. During the term a� this Agreement, Operator shali pexiodically inspect the roadways
during drilling, fracture stimulation or reworking of the gas weIl to determine whether or not �y
�amage has occurred as a result of Operator's ac�i�ities. Immediately upon discovering the
existence of any such damaga to the roadways, Operator sha11 undertake ta repair and/or remedy
same. Upon discovery af damage by the Operator, the Operator will have 48 hours to corztact the
Directar of Transportation and Public Works to work out a schedule of repair�. Repairs shall take
place within 30 days ar immediately if the damage affects the immediate health and safety of
individuals,
ARTICLE 2.
TERM OF AGREEMENT
This Agr�elnent shall commence upon the date indicated above anc€ shall continue in full
force and et'fect until Operatar has completed and/or pertnanently discontinued the activities upon
the road�vays, as described hereinabove.
ARTICLE 3.
INSURANCE AND 1NDEMNITY
The Operator shall provide or cause to be provided the insurance described below far
each well unless a Gas Well Perramit has been issued wherein such insurance has been provided far
the issuance of the Gas Well Permit under the terms and conditions described in the Fort Worth
"Gas Drilling and Production" Oxdinance and such insurance to continue until the well is
abanc�oned and tY�e si�e restored.
In addition to the band or letter of credit required pursuant to tlus Agreement and the Fort
Worth "Gas Drilling and Production" ardinance, the Operator shall carry a palicy or policies of
insurance issued �y an insura.nce company ox campanies authorized to do business in Texas. In the
event such insurance policy or policies are cancelled, thc Gas Well Permit shall be suspended on
such date of cancellation and tb.e Operator's right to operate under such Gas Well P�rmit shall
immediately cease until the Operator files additional insurance as provided herein.
1. General Requirements applicable to a[1 policies.
a. The City, its officials, ernployees, agents and officers shall be endorsed as an
"Addi�ional Tnsured" to a11 poIicias except Employexs Liability coverage under the
Operator's Workers Compensatian palicy.
b. Al1 policies shall be written an an oceurrence basis except for Envixonmental
Pollution Liability (Seepage and PoIlution coverage) and Excess or Umbrella
Liability, which may be on a clairns-made basis.
Page 2
c. AlI policies sha.il be written by an in�urer with an A-: VIII o;r better rating by� the most
current version of the A. M, Best Key Rating Guide or with such other financially
sound 'znsurance carriers acceptable to the City.
d. Deductibles sha11 be listed an th� Certiiicate of Insurance and shali be an a"pex
occwr�rence" basis unless otherwise stipulated here�n.
e. Certificates of Insurance shall be deliv�red tQ the City of Fort Worth, Develapment
Department, 1000 Throc�cmorton Street, Fo:rt worth, Texas 76102, evidencing all the
required coverag�s, including endorsements, prior io �he issua�.ce af a Gas Well
Permit.
f. All policies shall ba endorsed with a wai.ver of subrogation providing rights of
recovery in favor of the City.
g. Any failure on part of the Czty to request required insurance documentation shall not
constitute a waiver of the insurance requirement specified herein.
h. Each policy shall be endorsed to pravide the City a minirnum thirty-day natice of
cancellation, non-renewal, andlor material ehange in palicy terms ar coverage. A ten
days notice s�iail be acceptable in the event of non-payment of premium.
i. Duxaing the term of the Gas We11 Permit, tlae �perator shall report, in a timely manner,
�o the Ga.s Inspector any lcnown loss occurrence which could give rise to a liability
claim or lawsuit or which cauld result in a property lo�s.
j. Upon request, certified copies of a1� insurance policies shall be furnished to the City.
2. S�andard Commercial General LiabiIity Policy.
This coverage must include prem:ises, aperations, blowout or explosion, praducts,
cotnpleted operations, sudden and accidental pollution, blanket contractuai liability,
underground resources damage, broad for� praperty damage, independent cantractors
protec�ive �iability and personal injury. This caverage shall be a minimuan Combined Single
Limit of $1,000,000 per occurrence for Bodily Injury and Praperty Damage.
3. Excess or Umbrella Li�biIity
$ 5,Ofl0,000 Excess, if the Operatar has a stand-alane Environmental Pollution
Liability (EPL} policy.
$10,000,000 Excess, if the Operator does nat have a stand-ala�e EPL poiicy.
Coverage must include an endors�m�nt far sudden or accidental
pollution. If Seepage and Pollution coverage is written on a"claims
made" basis, the �perator must �aintain coniinuous coverage and
purchas� Extended Coverage Periad Insurance when necessary.
4. Workers Compensation and Employers Liabzlity Insurance
a. Workers Compensa�ion benefits shall be Texas Statutory Lirnits.
b. Employers Liability sha11 be a minimurn of $500,000 per aceideni.
c. Such coverage shall include a waiver of subrogatian in fa�or of the Ciiy and provide
coverage in accordance with applicable State and Fedexal laws.
5. Automobile Liability Insurance
a. Combined Single Limit of $I,OOO,OOD per occurrence far Bodily Tnjury and Property
Damage.
b. Cav�rage must include a11 owned, hired and not-owned automobiles.
Page 3
6. Certi�cates of Insurance
a. The company must be admitted or approved fo do business in the State of Texas,
unless the caverage is written by a Surplus Lines insurer.
b. The insurance set forth by the insurance company must be underwritten on forrns
that have been approved by the Texas State Board of Insurance or ISO, ar an
equivalent policy form acceptable to the Ciiy.
c. Sets forth alI endorsements and insurance coverage accordiulg to requ�rements and
instruc�ions contained herein.
d, Shall specif'ically set forth the notice a� cancellation, termination, or change in
co�erage provisions ta the City. All policies shall be endorsed to read "THIS
POLICY WTLL NOT BE CANCELLED OR NON-RENEWED WITHOUT 30
DAYS ADVANCED WRITTEN NOTTCE TO THE OWNER AND THE CITY
EXCEPT WHEN THIS P4LICY IS BE1NG CANCELLED FOR NONPAYMENT
OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE WRITTEN NaTICE IS
REQUIRED".
e. Original endors�ments affecting coverage required by this section shall be furnished
u�ith the certif cates of insurance.
7. The cancellatian of any insuxance for the sole purpose of the xepair of roadways will not
release the obligation af the Operatar to meet all requirements of insurance and bandi�ng
under the Fort Worth "Gas D�illing and Produciion" Ordinance.
8. Operatar shall and hereby daes indemnify, defend and save haarmles� the City, its ofFicers,
agents and employees from aIl suits, actions or elaims of any character, iiame and
d�scriptaon brought £ar or on account of any injuries ox damages received as sus�ained by
any persan, persons or property on account of the operations of the Opexator, his agents,
employees, contractors or suhcontractors; arr on account of any negligent act of fault o� the
Qperator, his agents, employees, contraciors or subconfiractors in cannection with the
obligations undex this Road Repair Agreement; and si�all pay any judgment, with costs,
which may b� obtained against the City growing out of such injury or damage.
ARTICLE 4.
PERFORMANCE BONDS
1. Operatar shall provide a performance bond, unless a performance bond ha.s been
provided for the issuance af a Gas Well Petmit uradex ihe terms and canditions described in Fort
Worth "Gas Drilling and Production" ordinance, in an amount nat less than th� amaunt necessary
to repair the roadways, as determinec� by the City Director of Transportaiion and Public Works.
2. Prfor to the beginning any activity pursuant to the issuance oi a Gas Well Permit,
unless a performance band has been pxovided far the issuance of a Gas Well Permit under the
terms and conditions described in the Fort Worth "Gas Drilling and Production" Ordinance,
Operatar shall pro�ide the Gas Inspectar with a security instrurnent in the form of a bond or an
irrevocable letter �f credit as fallows:
Page 4
a. Bond. A band shaJl be executed by a reliable bonding or insurance institution
authorized ta do bu5iness in Texas, acceptable to the City. The bond shall become effective
on or before the date the Gas We11 Permit is issued and shall remain in foxce and effect for
at least a period of six (6) months after the expiration of the Gas Well Permit t�rm or until
th� well is plugged and abandoned and the site is restorad, whichever accurs first. The
Operator shall be Iisted as principal and the instrument shall run to the City, as obligee, and
shall be conditioned that the �perator will comply with the terms and regulations of this
Ordinance an.d the City. The original bond shall be submiited to the Direcior of
Transportation and Public Works with a copy o� the same pro�ided to the City Secretaxy
and the Gas Tnspector.
b. Letter of Credit. A letter of cr�dit shall be issued by a reliahle bank authorized to d�
business iz� Texas and shall become effective on or before the date t.l�e Gas We1I Permit is
issued. The letter of credrt shall remain i.z� foree and effect for at Ieast a period of six (6)
months after the expiration of ihe Gas Vi�ell Permit terrn. The City sha11 be authorized to
draw upon such letter af credit to recover any iines or penalties assessed under #his
ordinance. Evidence of the exeeution of a�etter of credit shall be submitied to the Director
of Transpartation 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 ihe well as required
by Ordinance Number 1�880, Joint Resources Com�any agrees to eithe� renew the Letter of
Credit or replace the Letter of Credit with a bond an the amount required by the City of Fort
Wortli Ordin�nce Number 1488�, an or before 45 days prior to the expiration date o� the
LettEr of Credit. Tf Jaint Resources Company fails ta deliver fio the City of Fort Worth
either the renewal Letter of Credit or replacement bond in the appropriate amount o�n or
before 45 days prior to the expiration date of the Letter of Credit, the City of Fort Wortl�
may draw the entire face amount of the attached Letter of Cxedit to be held by the City of
Fort Worth as security for Joint Resaurces Company's performance of its obligations under
Ordinance Number 14880.
c. Wbenever the Gas Inspector ar the Director of Transportatiox� and Public Works
Department finds that a default has accurred in the performance af any requirement or
condition imposed by this Agr�ement, a written notice shall be given to Operator. Such
notice shal� specify the work to be done, the estimated cost and the period of timc� d�emed
by tl�e Gas Inspectar ar the Director of Trar�sportation and Public works Department to be
reasonably necessary for the completion of such work. After receipt of such notice, the
�peratox shall, within the time therein specified, either cause or require the work ta be
performed, or failing to do so, shall pay aver to fhe City one hundred twenty-five percent
(125%) af th� estimated cost of doin� the work as set forth in the notice.
d. The City shall be authorized ta draw against any irrevocable Ietter of credit or bond
to recover such amoun� due from Operator. Upon receipt of such monies, the City shall
proceed by such mode as deemed convenient to cause the required woxk to be per�armed
and completed, but no liabi�ity shall be incurred o�er than for the expenditure of said sum
in hand..
Page 5
e. In the event Opera�or does not cause the wark ta be performed and fails or refuses to
pay over to the City the estimated cos# of the work to be done as set forth in the notice, or
the issuer af the security instrument refuses to honor any draft by the City against the
applicable irrevacable letter of credit or bond the City may praceed to obtain compliance
and ahate the default by way of civil action against Operator, or by crirninal action against
ihe Operatar, or by both such methods.
f. The cancellation of any bond o� letter o£ credit for the sole purpose of the �repair of
roadways will not release the obligation of the O�erator 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. Tf the cast of the campleting the repair is an amount of $15,000 or less, as
determined by the Director of Transportation and Public Works, cash in the amount necessary to
complete the repaiY's, as determiz�ed by tk�e Director of Transportation and Public Works, rnay be
d.eposiied with a bank or escrow agent pursuant �o an escrow agreement acceptable and appxoved
by the City ensuring completion of the repair.
ARTICLE 5
MISCELLANEOUS PROVISIONS
1. Operator understands and agrees that �perator, its emplayees, servants, agents, and
representa�ives shall ai no time represent themselves to be employeas, servants, agez�ts, and/or
reprasentatives of the City. The City sha11 not ha�'e any cantrol over the means or methods by
which Operator shall perfarm its obligations hereunder. Operator shall furnish all equipment and
materials necessary tn perforrn hereunder and sha.11 at all times �e 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 ox defense that would otherwise be available ta it againsi claims arising by
third parkies.
3. This Agreement represents the entire agree�nent between Operator and City for
repaar af xoadwaqs and supersedes all prior negotiations, repres�;ntations, and/or agreements, either
written or oral. This Agreement may be amended only by written in.strurnent sig�ed by tk�.e
gaverning 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 �he reasonable
contarol oi a party including, �,rifl�out limitation, acts of God or f.he public enemy, war, riot, ci�il
commotion, insurrection, government or de facto government action (unless caused by acts or
omissions of �he party), fires, explosions, rain or other weather delays, flood�, strikes, slowdowns
or work stoppages.
Page 6
ARTTCLE 7.
AS STGNAB ILITY/C ONSENT
Except as otherwise provided herein, or excep� as may be hereafter deternuned by the
parties, no party to this Agreement may sell, assign, or transfer i�s interest zn this Agreement, or any
of rts right, duties, or obligation� hereund�r, withaut the prior vvritten consent of the other party.
Whenever the consent or the approval of a party is required herein, such party shall not
un�easonably withhold, d�lay, or deny such consent or approval. Operator may assign this
Agreemant to any successor entity to whom the applieable Gas Well Permit has been assigned upon
vrritten notice to the City of said assignment.
ARTICLE 8.
NOTICE
Any notic� given by one party to the other in connection with �his Agreement shall be in
writing and shall be by personal de�ivery; sent by registered mail or certified mail; or by U:tuted
�tates Mail, retu�rn :receipt requested, posiage prepaic�; to:
CITY: Ot'fice of the City Manager
City of Fort VVarth, Texas
1000 Thrackmorton Street
Fort Worth, Texas 7�102
OPERATOR Joint Resaurces Company
770 N. Fielder Road
Arlington, Te�as 76012
Notice shall be deemed io have been received on the date of receipt as shown an the return receipt
or other written evidence o� receipt.
ARTICLE 9.
MODIFICATION
No waiver or modificaiian of this Agreement or of any covenant, condition, limitation
herein contained shall be valid unless in writing and duly executed by fihe party to be charged
therevt�th. No evidence of any w�aiver ar modi�cation shall be offered or received in ev�idence in
any praceeding arising between the parties hereto aut of or affecting this Agreement, or the righis
ar obligations of the parties h�r�under, unless such waiver or modification is in writing, duly
executed. The parties further agree that the provisions of this Article vcrill not be waived unless as
herein set forth.
ARTICLE 10.
SAVING�/�EVERABILTTY
In tk�e event ihat any one or more of the provisions hereof contained in this Agreemen� shall
for any reason be held to be invalid, illegal, or unen#'orceable in any respect, such in�validity,
illegaliiy, or unenforc�ability shall not effect the other provisions, and the Agreement shall be
Page 7
construed as if snch invalid, illegal, or unen£�rceable provision had never been contained in this
Agreeznent.
ARTICLE 11.
GOVERNING LAW AND VENLTE
This Agreement shall be construed under and governed by, and in accordance witl� the laws of the
State of Texas, and venue for any action arising uzxder the terms and conditions of this Agreement
sbal.l lie in the state courts laeated in Tarrant County, Texas ar the United Sta.�es District Court for
the Northern District of Texas, Fort Worth Divi�zon.
ARTICLE 12.
ENTIRE AGREEMENT
This Agreement and the exhibits attached ther�to, constitute th� entixe agreement among the
partaes hexeta with respect to the subject matter hereof, and supersede any priox understandings or
written or oral agreements between the parties with respect to the subject matter of this Agreement.
No amend.ment, modi�icaifon, cancellation or alteration of the terms of this Agreement shall be
binding on any party hereta unless the same is in writi_ng, dated subsequent ta the date hereo�, and
is duly autharized and executed by th� parties hereto.
ARTICLE 13.
WANER OF TERI�IS AND CONDITIONS
The failure of either parry to enforce or insist upon compliance with any of the terms or
conditians af this A�reement shall not constitute a general waiver ar relinquisbment of any such
terms or condiiions, �ut the same shall be and remain at a11 times in full force and effeci.
ARTICLE 14.
CAPTIONS
The captions contained in this Agreement are for informational purpases only and sha11 not
in any way affect the substantive terms or conditians of tliis Agreement.
ARTICLE 15.
COUNTERPART�
This Agreement may be executed in any number of counterparts, each of which sha11 be
deemed an original, and constitute ane and the same instrument.
IN WITNESS WH�OF, t,�ie parties do herehy �x their signatures and enter into this
Agreement as of the � ay of �- rn • g� , 2003.
ATTEST: CITY OF' FORT WORTH
Page 8
.+
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� �_�`.. ���'_ . . . .
[�� , � ��:�.' � . � gY� -
Cify �►:retary � 1Y�� �_�� , ck , City Managex
contract ��thoxizz�tian
APPROVED AS TO FOF.I1� - --
AND LEGALITY: �a�e
David Yett, City Attorney
� , �n R
By: G'-c/ /�'�P.�i��
�
Joint Resources Comp 7-�peraior
�s,��,��"`� =�
Mark G. Ka�p ] , President
STATE OF TEXAS
COUNTY OF TARR.ANT
Before me, the undersigned notary public, on this day personally appeared Gary Jackson,
the City Manager of the City of Fart Worth, Texas, known ta me to be the persan whose name is
subscribed to the faregoing instrument, and acknowledged �o me that he/she executed the
instrument fox the purposes and consideration therein expressed.
Give � ,a.l of office this, _ day oi ., _�_ , 2003.
;�nY p�e�.. PATSY C 0 X �
z:' � � � �. NQTARY PUBLIC � �
�
s'�i��f� State 0� TBX83
�a;'� of'i� rf Comm �xp i 2-1$-2404 ��. �
� � .� . _ . . . � � ,. . . _ . ,� 9 �� v � . 1�'4 otary Public
STATE OF TEXAS §
COUNTY OF TARRANT §
Before me, the undersigned authority, a Notary Public in and far the State of Texas, on this
day pexsonally appeared Mark G. Kalpakis, known to me to be the person whose name 15
subscribed to the foregoing ;i�sfnxmeni, and acknowledged to me that the same was the ac� of Joint
Resouxces Campany, a Texas corparation (the corporation) and that he executed the same as the act
of said Joint Resources Company (corporaiion) for the purposes and consideration therein
expressed a�d in the capacity therein stated.
Given under my hand and seal of office this 2 g.� day of � , 2Q03.
.,.... ;, ,,r,. ,.,. . _:_. ,.- _.o. . . . ..,�, Q� V��
���'� �, a�ao��n,n�Hqow ' `Nataxy Public
~`� �` MY CDNEMIBSION EJ(pIRES
`� Sr�te+nher3 z000 �
. t,� ` �
�.� � ..�� -�";:...� - .::� .
Page 9 _ � �
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�l`f r' �� ���� IdV�R7"H, '�►�
�A� DR1LLIi�C ,�i�i� PF��I�U�TIC�R3 �BA��
G�lJ�tiY �� TA�eNT §
EXHIBIT "H"
Bond 1�0.5002335
KN4� ��1���Y �H��€ ���S�P1�S:
i"h�t We, Jo�n� Resources Campany �
��, p�'jf��lp�i, �C�� Band Safeaua�d Insur�nce Camp�ny ,
�s sta���ty, are ��Id �nd f�rrnly b��t�d u�t� �t� Gity of �or� wor�+ �'exas, in th�
penal su�ri �f. Fi�ty Thausand & oo/�oo Dol6ars ($ 50,000.oa**.�j 9oad
a�d [awrul rr�o�ay �� tl�� linit�d �t��e� �fi Am�rio�, weif an� truly �o b� pai� f�r
ti�� ��yrm�r�� a� w�hich wo, ��d ����i� �� ��, h�r�by bind aurselv�s, our h��rs,
ex�ou�or�, �dnni�istr���rs �r�� su���s��t�, j�l�tly and severalty, fim�tly by �hese
pt��er��s �
iH� ��i��Ii[O�� �F iH[5 ��LE�A71�A6 �R� �1�CF,t `�R�di
11Vdb���, �h� �bov� p�in�ip�l d�sfres #� dr�rl ���s w��l w��hin fih�
��rp��ate llmi�s �f �h� City of ForE W�rth and has cam�li�d wi�h aIl ih� terms �nd
condit�ar�s af C�ty �f ��rt Wo�h Ordir����� No, 14�84 (the "4rdina�c�°) af th�
City �� Far� W�rtl�, Te�x��� �r�d �a� aPpli� �� t�e �i������ o� D�v�iopment far a
��s VVe[[ P�rmi� �s provi��� �o� ar�� ��g��d i� ��I� or�in�nc�
N�1fl�, THER.���F�E, i� ��id ��ir�e1��1 ��i�1! fr�ily �o�ply wi�h the te�ms a�
'�a Qr�in�n�e, fh�n �I�i� o�Jig��ien �Fi�U �� �ul! a�� voi�, �t��rwi�� tg r�main iri
�full f�r�� and ef#�ct: provid�d, how�v�r, �f�l� ba�d ls �execr,�ed �y fh� s�rety on
�� �r�di�i�n fh�t iYs l�a6ilii.y sh�ll b� ilmit�d �y and sca�j��t�to the cor�diti�ns ��d
�r��i�io�� ��t�ur�d�r ��t�in�d. .
S��ca��iv� ac�ions m�y �e brought on �i-iir b�Rd ��� succe��iv.e br��ah��
� i�s condit�vn� �r �ny o� t.h�m; �r�vid�dF h��wev�r, thafi the ��tal. sum ag afl
liabfjity vf the st�re�y on any or�� �r all �� �uc� ao�iar�s shal� na� �xc��� a tatal
sum of �i�tv �housana**** ��I[ar� (� 5o,00a.oa**�.
This �b�nd �r�n�t be ca��al�d �nd sf�a�l remain in ���c� ��� a p�riad of six
(�) m��th� ���r �i�� �xpir�t�on o� �e ��s �W�19 �e��ni� gr �fl�i� �he g�� wEf1 �s
�l�gg�� and aban��ned ��d fi�� �i�� . a� f�� well �esYared, whiah �v�r accurs
eariier; prc��9d�d, i��w�v�r, ar�y.�i�lm �g�i�� �ig ���d m�y �� �r��ght w�thin
�wo (�) ye�[�s �al�owing fh� �xp�r���n e� �� ��s W�[Z Pem�it �r �h� piug�ing �r�d
ab���onrr���� e�t�e well, wh�ch���r accurs first_
`T�� �u���y waf�� aiI d�fens�s with respeG� to no�ices o� ��f�ul#, r��tice of
extension of �ime, de�n�r�d and diligenc.�, an� fi��i��P w�iv�� �ny ��f�ns� r�la��d
to ��� City'� ��Irsr� f� ln�titi�ie le�al a��lori agai�st #he �rin�ipal.
r
1Pf W!7'N�S� WHE���F, ��� s�id ��ncipal and #h� said Surety h�v� s��
their f�and and �eal this �� . 2�ra day of January 2Q 03
. Joint Resources C pany
�Y= � � a
. �
+ P�i�cipal
,,..:<�<�`;,,�:,,,
,, ..:t'f�,`P.�4�1:�} �T,�..
. Bond Sa�eguard Iristi�a'�;��:�bm�ng.: �
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Ja�s � . Sm ' h At�orney,�ii�::�,acf'; ,�; .: � : - �'�::a . ,
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E�HIBIT "H"
�ow�� o� arroRN�v
Ao 1�313
���� ������,�°� [NSURANC� COMPANY
Kt�OW ALL M�N BY THESE PRESENTS, that BOND SA�EGUARU INSUAANCE CaMPANY, an lllinois Corpnration with its
principal affice in Lorrbard, Illinois, does hereby constifute arid�appaint: James T. Smith, John B. Manus, Linda Gibson,
Tammy Mastersnn, 8rook T. Smith, Kathy Hob�s, Raymond M. Hundley, ,lasan D. Cromwell, James H. Ma�tin
its ttus and law(ul Attorney�s)-In-Fact to Rtake, execute, saal and deliver far, and on its behaif as sure�y, any and ail bonds, unde�ta[cings ar
other wdttngs abligatory In nature of a band.
This authority is made under and by ihe aut�o�iiy of a resalutinn which was passed by the Baard ot Directors of 60ND
SAFEGUARD lHSiJRANCE COMPANY ors the 7th day a# No�ember, 200i as fallows:
Resoived, that tha PrasicEent of the Cam�any is hereby authorized to appoint and smpower any representaliva of the Company or
other persan or persons as Attomey-In-Fact to execute on hehalf of the Company any bonds, undartakings, pollcfes, cantracts of indemnity
ar other writings obl[gatory In nature nf a band nat tQ exceed $540,O�U.40, Five Hundrad Thousand �allars, which the Company might
execute through its duly elected officers, and affix ihe seal of the Company thereto, Any said execution of such documents by an Attorney-
In-Fact shall be as hinding u�on the Company as ii they had been duly axecuted and acknawledged hy ihe regularly elected officars oi the
Company, AnyAttomey-In-Fact, so appointed, may be removed for good causa and k�a authority so gran#ed may bs revoked as speciHed in
the Powar af Attomey. •
Resolved, that the signature of the President and the seal of ths Company may he affixed by facsimile on any power of attorney
granted, and t�e signature of the Vice Presidant, and the seal of the Company may be a�[xed by facsimile to any oertlficate of any such pawer
and any such power or cert{ficate bearing such facsimile signature and seal shall be valEd and binding an the Company. Any such power so
executed and sealed and ce�kificate so executad and ssaled si�ali, with Eespect to any band or undertaking to which [t 1s attached, continue
to be va1Ed and binding on the Company.
1N WITNESS TNEREOF, BOND SAFEGUAAD INSUHANC� COMPANY has caused ti�[s instrument to be signed by iEs
Prasident, and its Corporate 8eal to be aittxed thia 7th day of iVavemher, 200t.
���J�p INSU,q,q,�CR
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o A" aa
2 ILI.INOIS q
m INSEJFiANCE �
COMPANY
\ /
BOI�� SAFEGIfARD INSURANCE COMPANY
BY � _ �` �. ��
�/
David E. CampbelE
President
ACiCNOW��DG�M�NT
On ihis 7th day of November, 20Ei1, before me, persona�ly came Davia E. Campbell to me known, who being duly sworn, did
depase and say that he is the President of B4N0 5AFEGUAR� IMSURANGE COMPANY, the corporation described in and whlch executed
the above instrument; that he executed sald lnstrument on behalf of the corparation by author�ty of his office under the 6y-laws of said
aorparation.
��Q��lCIAL SEAL��
JAhl�T L. COPPOCK
I�OYARY PUBLIC, SiATE OF ILtlNQl5
I�Y COEA�115SION �XPIRES 81141Q5
�- �
Janet L. C ppock
Notary Pubfic
CERTIFECAi�C� -'.
I, the undersigned, Secretary af BONq SAF�GUARD��piSURAi��E' COMPANY, An Illinvis ]nsurance Company, DO Fi�REBY
CEFI7IFY that the original Power of Attorney of which the (oregoic�g_is a:tnie��and�.;correct capy, is in ful! (orce and atfect and has not heen
revoked and the resolutions as set forth are now in (orce. ��' ^�_ '
. . }
Signed and Sealed at Lomtrard, Illinois lhis 23�� `'���' ?Cl'ay'ot ,- •'� ���a� , 2003
:�, S� � _�
PPp 1NSUqA� .`�,;.' , l : ' '' ! -
��GJ c�co ' i1 ,'' , r } .' ./�X�/ 1 � i ��Ci' i�/%�.Cl/�i
AN Ta� •'rf �r ' • `�
•�.,e;..
m�Nsu�an�ce ' � . Qonald D. Buchanan
COMPANY Secretary
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Henry Robertson Survey,
Abstroct No. 1259
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EXHIBIT "A"
DRZLLSITES E1�TTRY WELLBORES, PARCEL
A1�TD PR�DUCTIOl� UNIT�
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742.�8' y 85�.47' � : ' �
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4�;5'_11� �� �0000v.l����m 703.@9'
�s.a' Bond Ranch Raad
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EXHIBIT "A"
OIL & GAS LEASE LAND DESCRIPTION
Tract 1: 197.406 acres of land, more or less, in the Henry Robei�son
Survey, Abstract No. 1259, and being a part of that certain cal�ed 78.78 acre
t�act conveyed to Versie McKee by deed recorded in Volurne 1 I731, Page 2227,
Deed Records, Tarrant County, Texas, and alsv being a part oFthat certain called
95.40 acre tract aF land conveyed to Denie McI�ee by deed recorded in Volume
3209, Page 255, Deed Records, Tarrant County Texas, and also heing a part of
that certain called 140.00 acre tract of land conveyed to Veraie H. McKee by
deed recorded in Volume 32D9, Page 253, Deed Aecords, Tarrant County,
Texas.
Tract 2: Being 4.520 acres of land Iocated in the Henry Rohertson Survey,
Abstract 1259, Tarrant Count}+, Texas, being a portion af the tract of land
described in the deed of Trust Company af America, a Colorado corporation, as
trustee of the Larry F. Beard IRA/Itollover Aceount NO. 87345, recarded in
Voluine 1�301, page 190, cieed Records, Tarrant County, 'I'exas. Said 4.510
acres of land being more particularly described as follows:
BEGINNING at an'/z°' iron rpd stamped BEASLEY RPLS 4050 sat in the Soutn
line of said T�ust Coznpany of Annerica tract laying S 89°58'S4" E., a distance of
289.77 feet from a Tarrant county monuznent found at the Southwest corner of
said Trust Company oi America tract, being the Northeas# corner of a ti�act of
land descrihed in the deed to Tairant County, Texas, recarded in Valume 14286,
page 457, Deed Records, Tarrant County, Texas, and being the NotEhwest
corner of a tract of land described in the deed to Tarrant County, Texas,
recorded in Volume 14036, 1'age 222, Deed Records, Tarrant County, Texas;
THENCE N00°12' 14" �., a distar�ce vf 354.33 feet to an '/Z" iron rod stamped
BEASLEY RPLS 4050 sek in the Narth line of said Trust of America ttact;
THENCE N89°34'01"E., a distance of 656.63 feet along said North line to a
paint;
THENCE 500° 12' 14"W., a distance of 43.99 feet to a point;
THENCE N89"47'46"W., a distance of 120.OD feet tv a point;
THENCE S00°12'14"W., a distance of 315.91 feet to a point in a sand South
line of trust of America tract;
THENCE N89°58'S4" VV., a distance of 536.54 feet along said South line to the
point of begrnni.ng, containing 4,510 acres, of land.
The bearings recited hereon are oriez�ted ta the West line of the tract described in
Volume 6262, Page 779, Deed Records, Ta�rrant County, Texas.
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