HomeMy WebLinkAboutContract 29541 CITY SECRETARY
CONTRACT NO.
ROAD REPAIR AGREEMENT
BETWEEN
THE CITY OF FORT WORTH
AND
EAGLE OIL & GAS CO.
This Road Repair Agreement, (Agreement), is made and entered into on this the 19th day of
January, 2004, by and between the City of Fort Worth, Texas ("City"), a home rule municipal
corporation of the State of Texas, located within Tarrant and Denton Counties, Texas (Hereinafter
referred to as the "City") and Eagle Oil & Gas Co. ("Operator") for the repair of certain streets
and/or roadways within the City of Fort Worth, Texas as more fully described herein.
WHEREAS, Operator is in the business of drilling gas wells and, in connection therewith,
shall be engaged in drilling and production activities on property known generally as Prairie
Meadows #4 Well, 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 abut the above-
described property being used by Operator for the drilling and production of gas wells pursuant to a
Gas Well Permit issued to Operator. The repair obligation shall continue even if the Gas Well
Permit is amended 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 such roadways prior to the start of Operator drilling and
operation of its gas wells and shall provide a copy of the videotape to the Director of
Transportation and Public Works. Operator shall notify the Director of Transportation and Public
Works when drilling or fracing operations are complete so that the Director of Transportation and
Public Works can determine if repairs are required.
Exhibit "C" '� j�
Road Repair Agreement City of Fort Worth
Gas Well Application
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 the 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, as described hereinabove.
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 Permit shall be suspended on
such date of cancellation and the Operator's right to operate under such Gas Well Permit shall
immediately cease until the Operator files additional insurance as provided herein.
1. General Requirements applicable to all policies.
Exhibit "C"
2
Road Repair Agreement City of Fort Worth
Gas Well Application
a. The City, its officials, employees, agents and officers shall be endorsed as an
"Additional Insured" to all policies except Employers Liability coverage under the
Operator's Workers Compensation policy.
b. All policies shall be written on an occurrence basis except for Environmental
Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella
Liability, which may be on a claims-made basis.
C. All policies shall be written by an insurer with an A-: VIII or better rating by the most
current version of the A. M. Best Key Rating Guide or with such other financially
sound insurance carriers acceptable to the City.
d. Deductibles shall be listed on the Certificate of Insurance and shall be on a "per
occurrence"basis unless otherwise stipulated herein.
e. Certificates of Insurance shall be delivered to the City of Fort Worth, Development
Department, 1000 Throckmorton Street, Fort Worth, Texas 76102, evidencing all the
required coverages, 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.
2. Standard Commercial General Liability Policy.
This coverage must include premises, operations, blowout or explosion, products,
completed operations, sudden and accidental pollution, blanket contractual liability,
underground resources damage, broad form property damage, independent contractors
protective liability and personal injury. This coverage shall be a minimum Combined Single
Limit of$1,000,000 per occurrence for Bodily Injury and Property Damage.
3. Excess or Umbrella Liability
$ 5,000,000 Excess, if the Operator has a stand-alone Environmental Pollution
Liability (EPL)policy.
$10,000,000 Excess, if the Operator does not have a stand-alone EPL policy.
Coverage must include an endorsement for sudden or accidental
pollution. If Seepage and Pollution coverage is written on a "claims
made" basis, the Operator must maintain continuous coverage and
purchase Extended Coverage Period Insurance when necessary.
Exhibit "C" 11-11�
3 -
Road Repair Agreement City of Fort Worth
Gas Well Application
4. Workers Compensation and Employers Liability Insurance
a. Workers Compensation benefits shall be Texas Statutory Limits.
b. Employers Liability shall be a minimum of$500,000 per accident.
C. Such coverage shall include a waiver of subrogation in favor of the City and provide
coverage in accordance with applicable State and Federal laws.
5. 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.
6. 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.
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.
7. The cancellation of any insurance 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.
8. Operator shall and hereby does indemnify, defend and save harmless the City, its officers,
agents and employees from all suits, actions or claims of any character, name and
description brought for or on account of any injuries or damages received as sustained by
any person, persons or property on account of the operations of the Operator, its agents,
employees, contractors or subcontractors; or on account of any negligent act of fault of the
Operator, its agents, employees, contractors or subcontractors in connection with the
obligations under this Road Repair Agreement; and shall pay any judgment, with costs,
which may be obtained against the City growing out of such injury or damage.
J
Exhibit"C"
4
Road Repair Agreement City of Fort Worth
Gas Well Application
ARTICLE 4.
PERFORMANCE BONDS
1. Operator shall provide a performance bond, unless a performance bond has been
provided for the issuance of a Gas Well Permit under the terms and conditions described in Fort
Worth "Gas Drilling and Production" ordinance, in an amount not less than the amount necessary
to repair the roadways, as determined by the City Director of Transportation and Public Works.
2. Prior to the beginning of any activity pursuant to the issuance of a Gas Well Permit,
unless a performance bond has been provided for the issuance of a Gas Well Permit under the
terms and conditions described in the Fort Worth "Gas Drilling and Production" Ordinance,
Operator shall provide the Gas Inspector with a security instrument in the form of a bond or an
irrevocable letter of credit as follows:
a. Bond. A bond shall be executed by a reliable bonding or insurance institution
authorized to do business in Texas, acceptable to the City. The bond shall become effective
on or before the date the Gas Well Permit is issued and shall remain in force and effect for
at least a period of six (6) months after the expiration of the Gas Well Permit term or until
the well is plugged and abandoned and the site is restored, whichever occurs first. The
Operator shall be listed as principal and the instrument shall run to the City, as obligee, and
shall be conditioned that the Operator will comply with the terms and regulations of this
Ordinance and the City. The original bond shall be submitted to the Director of
Transportation and Public Works with a copy of the same provided to the City Secretary
and the Gas Inspector.
b. Letter of Credit. A letter of credit shall be issued by a reliable bank authorized to do
business in Texas and shall become effective on or before the date the Gas Well Permit is
issued. The letter of credit shall remain in force and effect for at least a period of six (6)
months after the expiration of the Gas Well Permit term. The City shall be authorized to
draw upon such letter of credit to recover any fines or penalties assessed under this
ordinance. Evidence of the execution of a letter of credit shall be submitted to the Director
of Transportation and Public Works submitting an original signed letter of credit from the
banking institution, with a copy of the same provided to the City Secretary and the Gas
Inspector. If the Letter of Credit is for a time period less than the life of the well as required
by Ordinance Number 14880, Eagle Oil & Gas Co. 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 Eagle Oil & Gas Co. 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 Eagle Oil & Gas Co.'s performance of its obligations under Ordinance Number
14880.
Exhibit"C"
5
Road Repair Agreement City of Fort Worth
Gas Well Application
C. Whenever the Gas Inspector or the Director of Transportation and Public Works
Department finds that a default has occurred in the performance of any requirement or
condition imposed by this Agreement, a written notice shall be given to Operator. Such
notice shall specify the work to be done, the estimated cost and the period of time deemed
by the Gas Inspector or the Director of Transportation and Public works Department to be
reasonably necessary for the completion of such work. After receipt of such notice, the
Operator shall, within the time therein specified, either cause or require the work to be
performed, or failing to do so, shall pay over to the City one hundred twenty-five percent
(125%) of the estimated cost of doing the work as set forth in the notice.
d. The City shall be authorized to draw against any irrevocable letter of credit or bond
to recover such amount due from Operator. Upon receipt of such monies, the City shall
proceed by such mode as deemed convenient to cause the required work to be performed
and completed, but no liability shall be incurred other than for the expenditure of said sum
in hand..
e. In the event Operator does not cause the work to be performed and fails or refuses to
pay over to the City the estimated cost of the work to be done as set forth in the notice, or
the issuer of the security instrument refuses to honor any draft by the City against the
applicable irrevocable letter of credit or bond the City may proceed to obtain compliance
and abate the default by way of civil action against Operator, or by criminal action against
the Operator, or by both such methods.
f. The cancellation of any bond or letter of credit for the sole purpose of the repair of
roadways will not release the obligation of the Operator to meet all requirements of
insurance and bonding under the Fort Worth"Gas Drilling and Production" Ordinance. Any
bond required by the Fort Worth "Gas Drilling and Production" Ordinance shall stay in full
force and effect until the terms and conditions set out in the Ordinance are met.
3. If the cost of the completing the repair is an amount of $15,000 or less, as
determined by the Director of Transportation and Public Works, cash in the amount necessary to
complete the repairs, as determined by the Director of Transportation and Public Works, may be
deposited with a bank or escrow agent pursuant to an escrow agreement acceptable and approved
by the City ensuring completion of the repair.
ARTICLE 5
MISCELLANEOUS PROVISIONS
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.
Exhibit"C"
6 -----—
Road Repair Agreement City of Fort Worth
Gas Well Application
2. By entering into this Agreement, the City does not waive, nor shall it be deemed to
waive, any immunity or defense that would otherwise be available to it against claims arising by
third parties.
3. This Agreement represents the entire agreement between Operator and City for
repair of roadways and supersedes all prior negotiations, representations, and/or agreements, either
written or oral. This Agreement may be amended only by written instrument signed by the
governing body of the City or those authorized to sign on behalf of the City's governing body.
ARTICLE 6.
FORCE MAJEURE
Events of Force Majeure shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot, civil
commotion, insurrection, government or de facto government action (unless caused by acts or
omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns
or work stoppages.
ARTICLE 7.
ASSIGNABILITY/CON SENT
Except as otherwise provided herein, or except as may be hereafter determined by the
parties, no party to this Agreement may sell, assign, or transfer its interest in this Agreement, or any
of its right, duties, or obligations hereunder, without the prior written consent of the other party.
Whenever the consent or the approval of a party is required herein, such party shall not
unreasonably withhold, delay, or deny such consent or approval. Operator may assign this
Agreement to any successor entity to whom the applicable Gas Well Permit has been assigned upon
written notice to the City of said assignment.
ARTICLE 8.
NOTICE
Any notice given by one party to the other in connection with this Agreement shall be in
writing and shall be by personal delivery; sent by registered mail or certified mail; or by United
States Mail, return receipt requested,postage prepaid; to:
CITY: Office of the City Manager
City of Fort Worth, Texas
1000 Throckmorton Street
Fort Worth, Texas 76102
OPERATOR Eagle Oil & Gas Co.
2525 Kell Blvd., Suite 510
Wichita Falls, TX 76308-1061
Exhibit"C"
7
Road Repair Agreement City of Fort Worth
Gas Well Application
Notice shall be deemed to have been received on the date of receipt as shown on the return receipt
or other written evidence of receipt.
ARTICLE 9.
MODIFICATION
No waiver or modification of this Agreement or of any covenant, condition, limitation
herein contained shall be valid unless in writing and duly executed by the party to be charged
therewith. No evidence of any waiver or modification shall be offered or received in evidence in
any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights
or obligations of the parties hereunder, unless such waiver or modification is in writing, duly
executed. The parties further agree that the provisions of this Article will not be waived unless as
herein set forth.
ARTICLE 10.
SAVINGS/SEVERABILITY
In the event that any one or more of the provisions hereof contained in this Agreement shall
for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not effect the other provisions, and the Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained in this
Agreement.
ARTICLE 11.
GOVERNING LAW AND VENUE
This Agreement shall be construed under and governed by, and in accordance with the laws of the
State of Texas, and venue for any action arising under the terms and conditions of this Agreement
shall lie in the state courts located in Tarrant County,Texas or the United States District Court for
the Northern District of Texas, Fort Worth Division.
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 ate ereo , d
is duly authorized and executed by the parties hereto.
pp1
Exhibit "C"
8 ---
Road Repair Agreement City of Fort Worth
Gas Well Application
ARTICLE 13.
WAIVER OF TERMS AND CONDITIONS
The failure of either party to enforce or insist upon compliance with any of the terms or
conditions of this Agreement shall not constitute a general waiver or relinquishment of any such
terms or conditions, but the same shall be and remain at all times in full force and effect.
ARTICLE 14.
CAPTIONS
The captions contained in this Agreement are for informational purposes only and shall not
in any way affect the substantive terms or conditions of this Agreement.
ARTICLE 15.
COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and constitute one and the same instrument.
IN WITNESS ' IJ OF, the pi s+^do hereby affix olheir ,signatures and enter into this
Agreement as of the_ l; day of 1�' ,
ATTEST: CITY OF FORT WORTH
By:
Cit Secretary "Gar)4ac'ks6rV City Manager
APPROVED AS TO FORM
AND LEGALITY: Eagle Oil & Gas o.
David Yett, City Attorney
B5� ' '4 ��•�'� Y
arrell hoe r
On
Contract Authorization
Date
Exhibit"C"
9
Road Repair Agreement City of Fort Worth
Gas Well Application
STATE OF TEXAS §
COUNTY OF TARRANT §
Before me, the undersigned notary public, on this day personally appeared Gary Jackson,
the 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 I`' da.y o , 20
PATSY COX '
NOTARY PUBLIC
i* *' state of Texas
Notary Public
. Comm Exp 12-18-2004
STATE OF TEXAS §
COUNTYOF WICHITA §
Before me, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared Darrell Lohoefer, 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 Eagle Oil & Gas
Co.(the corporation) and that he executed the same as the act of said Eagle Oil & Gas Co.
(corporation) for the purposes and consideration therein expressed and in the capacity therein
stated.
Given under my hand and seal of office this day of A , 20 di
m
�otPa" RENA SHAFFER
N&ary Pllblit
NOTARY PUBLIC
s. 5 STATE OF TEXAS
My Comm.Exp,10-07-2004
Exhibit"C"
10
Road Repair Agreement City of Fort Worth
Gas Well Application
i.
Eagle 0;1 & Gas Co.
JUL 2 5 2003
Wichita Falis, Texas
BonidS&feguauM INSURANCE COMPANY
1919 S. Highland Avenue, Bldg.A-Suite 300
Lombard, Illinois 60148-4979
BOND RIDER No. i
To be attached to and forma part of Gas Drilling &Production Bond
Bond No. 5004478 Dated 05/14/03 of
Eagle Oil and Gas Co. Wichita Falls,TX 76308 ,as Principal,and
BOND SAFEC JARD INSURANCE COMPANY,as surety.in favor of I;tatP of Texas- Cily of Fort Worth,
Fort worth,TX 76102 .as Obigee.
It is understood and agreed that the Bond is changed or revised in the particulars as indkated bebw.
Bond Amount is Increased form $50,000.00 to $150,000.00
Said Bond ahaA be subject b aK its terms,conditions,and iodations.except as herein expressly modfied.
This gond Rider Strati become effective: July 1, 2003
IN WITNESS WHEREOF,BOND SAFEGUARD INSURANCE COMPANY has caused its corporate seal to be hereunto
affixed Itis: July 1, 2003
BOND SAFEGUARD INSURANCE COMPANY
Attoney4n-Fad
James T. Smith
i Exhibit"B"
t ,
POWER OF ATTORNEY
. Bond Safeguard INSURANCE COMPANY
KNOW ALL MEN BY THESE PRESENTS, that BOND SAFEGUARD INSURANCE COMPANY,an Illinois Corporation with its
principal office in Lombard,Illinois.does hereby constitute and appoint:
James T. Smith,John B. Manus, Linda Gibson,
Tammy Masterson, Brook T. Smith, Kathy Hobbs, Raymond M.Hundley,Jason D.Cromwell,James H.Martin
its true and lawful Attomey(syln-Fact to make,execute,seal and deliver for.and on its behalf as surety,any and alt bonds,undertakings or
other writings obligatory in nature of a bond.
This authority is made under and by the authority of a resolution which was passed by the Board of Directors of BOND
SAFEGUARD INSURANCE COMPANY on the 7th day of November,2001 as knows.
Resolved,that the President of the Company Is hereby authorized to appoint and empower any representative of the Company or
other person or persons as Attorney-in-Fact to execute on behalf of the Comparry any bonds.undertakings,policies,contracts of indemnity
or odw writings obligatry in nature of a bond rat to exceed$500,000.00.Five Hundred Thousand Dollars,which the Company might
execute through its duly elected officem and affix the seal of the Company thereto. Any said execution of such documents by an Attorney-
In-Fact shall be as binding upon the Company as.11 they had been duty executed and acknowledged by the regularly elected officers of the
Company.AnyAttorney-krFack so appointed,may be removed for good cause and the authority so granted may be revoked as specirred1n
the Power of Attorney.
Resolved,th4 the signatuxe.of the President and the seal of fhe Company may be affixed by facsimile on any power of attomey
gante4 and tine signature of the Vie President,and the seal of the Compary may be affOied by facsimile to any certificate of arty such power
and any such power or certificate bearing such fac sk.nle signature and seal shall be valid and binding on the Company.Any such power so
executed and sealed and certifieate so executed and sealed shall,with respect to any bond or urxWbldng to which it Is attached,continue
to be valid and birthing on the Cornpany.
IN WITNESS THEREOF, BOND SAFEGUARD INSURANCE COMPANY has caused this instrument to be signed by its
PresfdeM.and its Corporate Seal to be affixed this 71h day of November.2001.
"Su,
�o F� BOND SAFEGUARD INSURANCE COMPANY
$ Ks q
$ tr+sut�urcE � .
CorwArrr.
BY _
David E.Campbell
President
ACKNOWLEDGEMENT
On this 71h day of November.2001. before me,personally came David E.Campbell to me known,who being duly sworn;did
depose and say that he is the President of BOND SAFEGUARD INSURANCE COMPANY,the corporation described in and which executed
the above instnxnent;that he executed said Instrument on behalf of the corperation by authority of his office under the By-laws of said
corporation.
"OFFICIAL SEAL"
JANET L COPPOCK ZZ.6
NOTARY PUBLIC,STATE OF ILLINOIS Janet L ppoCk
MY COMMISSION EXPIRES$/14105 Notary Public
CERTIFICATE
i,the urdersigned,Secretary of BOND SAFEGUARD INSURANCE COMPANY,An.Illinois lrox tce Company.DO HEREBY
CERTIFY that the wiginai Power of Attomey of which the foregoing is a true and correct copy.is In fullforce and effect and has not been
revoked and the resolutions as set forth are now in force.
Signed and Seated at Lombard,Illinois this 1St Day of_ July X03
I'Zp%HSU,
GJ �C,
AN
$ wsu�ce { Donald D. Buchanan .
2 COMPANY Secretary
["'' y 1�'•n7 BFI BOND DEPT
940 766 1620 P.02
CITY OF FORT WORTH, TEXAS
GAS DRILLING AND PRODUCTION BOND
THE STATE OF TEXAS §
KNOW ALL BY THESE PRESENTS:
COUNTY OF TARRANT §
Bona No.,500478
That We, ogle oil & Gas co. ,
as, principal, and Bond Safe4uard Ins=aince CO�n ,
as surety, are held and "y bound unto the City of Fort Worth, Texas, In the
penal sum of Fifty Thousand & 00/100 1 Dollars ($50#000- .00) good
and lawful money of the United States of America, well and truly to be paid for
the payment .of Which we, and each of us, hereby bind ourselves, our heirs,
executors, administrators and successors, jointly and severally, firmly by these
presents
THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT
WHEREAS, the above principal desires to drill a gas well within the
corporate limits of the City of Fort Worth and has compiled with all the terms and
conditions of City of Fort Worth Ordinance No. 14880 (the 'Ordinance") of the
City of Fort Worth, Texas, and has applied to the Director of Development for a
Gas Well Permit as provided for and defined in said ordinance
NOW, THEREFORE, if said principal shall fully comply with the temps of
the Ordinance, then this obligation shall be null and void, otherwise to remain In
full force and effect provided, however, this bond Is executed by the surety on
the condition that its liability shall be limited by and subject to the condlfions and
provisions hereurider contained.
Successive actions may be brought on this bond for successive breaches
of its conditions or any of them; provided, however, that the total sum of eQ
liability of the surety on any one or all of such actions shall not exceed a total
SUM of_Fifty Thousand Dollars($J2-o000- -00)-
This
$ 50o000• .00).This bond cannot be canceled and shall remain in effect for a period of six
(6) months after the expiration of the Gas Well Permit or until the gas well is
plugged and abandoned and the site of the well restored, which ever occurs
earlier, provided, however, any claim against this bond may be brought within
two (2) years following the expiration of the Gas Well Permit or the plugging and
abandonment of the well,whichever occurs first.
The Surety waives all defenses with respect to notices of default, notice of
extension of time, demand and diligence, and further waives any defense related,
to the (A%%Ys failure to institute legal action against the Principal.
' � _
Exhibit"B"
BFI BOND DEPT 940 766 1620 P.03
IN WITNESS WHEREOF;the said Pftipal.-and the said Surety have.set
their hand and seal this tine14th day of maY 2C 03 -
Eagle oil & Gas Co.
By:
Principal
Bond safeguard Iwi n.anc company
SUMty�s
B �7'✓
JawAfM..Milth Attorney-in•Fad
.ut-a •1a-213 10:09 BFI BOND DEPT 940 766 1626 P.04
POWER OF ATTORNEY AO 11597
Bond. Safeguard INSURANCE COMPANY
KNOW`•ALL MEN BY THESE PROSENTS, that BOND SAFEGUARD INSURANCE COMPANY,an 111!1`10!8 Corporation W1111 its
principal of @ In Lornbard,All vols,¢oat hereby constitute and a ppolrt .James T.Smith,John B. Manus,Irnda Gibson,
Tammy Masterson, Brook T. Smith, Kathy Hobbs,Raymond M.Hundley, Jason D.Cromwell,James H.Martin
Its true and lawful Attomay(a)-in-Fact to"oka,axecute,seal and deliver for,and on Its behalf as surety.any and all bonds,undertaMngs or
otter wrNngs obligatory In nature of a bond.
This authority Is made under and by the ati t city of a resolution which was passed by the Board of Directors of BOND
SAFEGUARD INSURANCE COMPANY on the 71h day of November,2001 as follows:
Resolved,that the President of tate Company Is hereby authorized to appoint and empower any reprea btlive of the Company or
other person or persons as Atiomvy-in-Fact to execute on b*W of the Company any bonds,emdertaldnps,policies.contracts of Indemnity
or other writings obligatory In nabae of a bond not to exceed$500,000.00,Five Hundred Thousand Dollars,which the Coo"M might
execute through Its duty elected officers.and affix the soar of Ohe Company thereto. Any said execution of such documents by an Attorney.
In,-Fad shall be as binding upon the trompeny as If they ttad been duly executed and ackruNAudged by ttte regularly elected officers of the
Company.Any Attomey-In-Fact,so appointed,may be remora for good rause and the authority so granted may be revoked as specified in
the Power of Attorney.
Resolved,that me Signature of the President and the seal of the Company may be affixed by tocolmile on any power of attorney
granted,and the signature at the Vice Preeldent,and the seat of the Company may be affixed by k csfmlla io any certificate of any such power
and awry such power or cartificate bearing such tacslmfia slgnalm and seat shall be valM and binding on the Corttpany.Any such power so
executed and sealed and comficate so executed and sealed shall,with respect to any bond or undortaidng m which it Is attached.continue
to be vaild and banding on the Company.
IN WITNESS THEREOF, BOND SAFEGUARD INSURANCE COMPANY has caused this instrument to be signed by Its
President,and its Corporate real to be affixed this 7th day of November,2001.
t"au
BOND SAFEGUARD INSURANCE COMPANY
arra
eo�
BY Z- Da
vid E.Campbell
President
ACKNOWLEDGEMENT
On this 711h day of November.2001, before me,pamonally came David E.Campbell to me known,who being dotty sworn.dd
depose and say that he is the President of BOND SAFEGUARD INSURA14CE COMPANY,the corporation described In and which executed
the above MstrumNnt:fret he executed said Instrument on behalf of the cotporation by authority of his office under the ay-laws of said
-
*orporation
"OFFICIAL SEAL"
JANET L, COPPOCK zzaaia
N=RYPUBLIC,STATE OF ILLINOIS Janet L ppotk
MY COMMISSION EXPIRES AK4106 Notary Public
CERTIFICATE
1.the tshdar!dgned.SemttAry of BOND SAFEGUARD INSURANCE=COMPANY.An minds Insurance Company,DO HEREBY
CERTIFY thal the odginai Power of Attorney of which the fmrepokV is a tris and Correa copy.is in fun force and affect and has riot Wen
revoked and the resolutions as tet Lost are now in foam.
S4F*d end Seated it Lombard.hinds Ws 14thDay d lay 03
Wsu
AN
um"ols Donald D.Buchanan
u+sutAacs
r Secrctery
5
TOTAL P.04