2011-189s:llegal\our documentslordinances1111energy assets to legend consent to assign ordinance.doc
oxDrNANCE No. 2011-189
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSENT TO
ASSIGNMENT AND ASSUMPTION OF OBLIGATIONS, BY AND BETWEEN THE CITY OF
DENTON, TEXAS ("CITY"), ENERGY ASSETS OPERATING COMPANY, LLC (`BNERGY
ASSETS") AND LEGEND GATHERING COMPANY LLC ("LEGEND"), PROVIDING THE
CONSENT OF THE CITY TO THE ASSIGNMENT OF THAT CERTAIN RIGHT OF WAY
LICENSE TO USE CERTAIN CITY PROPERTY FOR THE PLACEMENT OF TRANSMISSION
PIPELINES ("ROW LICENSE"), DATED ON OR ABOUT OCTOBER 26, 2007, BY AND
BETWEEN THE CITY AND ENERGY ASSETS, PROVIDING THE RIGHT TO USE CERTAIN
CITY PROPERTY FOR PLACEMENT OF TRANSMISSION PIPELINES AS DESCRIBED 1N
THE ROW LICENSE; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton has determined that it is advisable to
consent to the transfer of the RO W License, encumbering certain real property located in the City of
Denton, Texas, as more particularly described in the ROW License, from Energy Assets to Legend,
as set forth in the Consent to Assignment and Assumption of Obligations (the "Consent"), attached
hereto and incorporated herein by reference; and
WHEREAS, the City desires to authorize the City Manager to execute the Consent with
Energy Assets and Legend; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager or his designee is hereby authorized to execute the Consent
between the City of Denton, Texas, Energy Assets Operating Company, LLC and Legend Gathering
Company LLC, as attached hereto and incorporated herein by reference.
SECTION 2. If any section, article, paragraph, sentence, clause, phrase or word in this
ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by
a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions
of this ordinance, and the City Council hereby declares it would have passed such remaining portions
of this ordinance despite such invalidity, which remaining portions shall remain in full force and
effect.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ��c day of (,�(�/GU�� , 2011.
�
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
�
B
APP VED A O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: �
Page 2
MARK �. �GHS, MAYOR
s:Uegallour documentslcontracts\i 1lenergy assets to legend row{;onsent W assign.doc
CONSENT T� ASSIGNMENT
AND ASSUMPTION OF OBLIGATIDNS
� This Consent to Assignment and Assumption of Obligations (the "Consent'� is dated this
� day of � D`�� , 2011, but effective as set forth below, by and between the
City of Denton, Texas, a Texas home rule muzucipal corporation {"City"), Energy Assets
Operating Campany, LLC, a Delawaze limited liability company ("Energy Assets"} and Legend
Gathering Company LLC, a Delaware limited liability company ("Legend").
WHEREAS, pursuant to that certain Right of Way License to Use Certain City Property
for Placement of Transmission Pipelines (the "ROW License"), dated on or about Octaber 26,
2007, the City granted to Energy Assets the right to cross roads, streets and easements under the
jwrisdiction of the City, as more particularly described in the ROW License, the ROW License
being attached hereto and made a part hereof as Exhibit "A";
WHEREAS, pursuant to that certain Assignment and Bill of Sale (the "Proposed
Assignment"), dated �ffective February 1, 2Q11, and recorded in Book No. 2843, Page 215, Real
Property Records of Parker Counry, Texas, Energy Assets assigned, subject to the consent of the
City, the ROW Licet�se to Legend;
WHEREAS, the ROW License prohibits assignment of any portion thereof absent the
written consent of the City;
WHEREAS, the City is amenable to consenting to the Proposed Assignment upon the
terms, conditions and provisions hereof;
WHEREAS, Legend or Energy Assets, as applicable, has paid all fees related to the
transfer of the ROW License and has posted their perfoxmance bond ax�d provided the insurance
as required by the ROW License, to and in favor of the City.
NOW THEREFORE, for and in consideration of Ten and no/100 Dollars ($10.00), the
covenants, representations and warranties provided herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by all parties hereto,
City, Energy Assets and Legend hereby ag�tee as follows:
1. Legend hereby expressly assumes, tt�e sazne as if Legend were the original
"Licensee" under the ROW License, all obligations and responsibilities of Licensee as
provided in the ROW License for all purposes and interests. Nothing contained herein
shali be construed to release Energy Assets from any obligation or Iiability related to the
ROW License occurring, arising or accruing prior to the effective date af the Proposed
Assignment.
2. Energy Assets hereby represents and warrants to the City that it does not own ar
possess, or have the right to own or possess, any interest or right whatsoever, present or
future, in the ROW License, as of the effective date of the Proposed Assignment, subject
to City consent as provided herein.
3. In reliance ugon the representations, warranties and agreements made herein by
Legend and Energy Assets, the City hereby provides its written cansent to the Proposed
Assigrunent, upon the terms and conditions provided herein.
4. Legend hereby provides to the City, for all notices contemplated by Section 17 of
the ROW License, the following:
Legend Gathering Company LLC
410 W. Grand Parkway South, Suite 400
Katy, Texas 77494
Attn:
5. Legend and Energy Assets here6y ratify and acknowledge the validity and
subsistence ofthe ROW License.
b. This Consent may be exeeuted in one or more counterparts, each of wluch shall
be deemed an original, but al� of which shall constitute one and the same instrument.
2
7. The effective date of this Consent shall be February 1, 2011.
Attest:
Jennifer Walters, City Secretary
r
B �
Approved as to legal form:
Anita Burgess, City Attorney
By: `—�-�C�
3
City of Denton
By: �L
eor e C. Campbell, City Manager
Legend Gathering Company LLC,
a Delaware limited liability company
' � � .�/I�,
.
� I .I.' ' .
► ' / �1 '
. �
Energy Assets C?pez�ating Company, LLC,
a Delaware li�ed liabil�company
By: ,✓
Name:
Title:
STATE OF TEXAS
COUNTY OF DENTON § �
T is ip strument is acknowledged before me, on this the � day of
/ , 2011, by GEORGE C. CAMPBELL, City Manager of the City of Denton, on
behalf of the City of Denton, Texas.
Giv n seal of office this �f"�" day of-���%�r , 2011.
`�N`;;,hr?q;,, JANE E. RICHARDSON
?+�' '°= Notary Public, State of Texas
_t •..
: s, ?.,� My Commission Expires
'�:;;� e��4;`' June 27, 2013
N ary Public
My Commission Expires: � �
STATE OF TEXAS
� COUNTY OF ����
This instrument was acknowledged before me on this 22Yldday of �tQyY►��.Y' ,
2011 by CQa(1 W'i Wl b�Pa' (�P.� as S�(�P`t-�nPXGt-� �SB�of Legend Gathering
Company LLC, a Delaware limited liability company, on behalf of said liability company.
and and seal of office this 2�lay of SAp�"ewi,b�e+' , 2011.
J��,BY�b��y COBY NATHANSON
,.o�e,. e�
-�; ';°'__ Notary Public, State of Texas
��n•� �4: My Commission Expires r.
��'�%;��"i�;;:`� July 22, 2015
Notar lic, S ate of Texas
My Commission Expires: uSZ 22 201' j
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on this day of ,
2011 by as of Energy Assets Operating
Company, LLC, a Delaware limited liability company, on behalf of said limited liability
company.
Given under my hand and seal of office this day of , 2011.
My Commission Expires:
4
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF DENT�N
This instrument is acknowledged before me, on this the �Y pf
, 201 i, by GEORGE C. CAMPBELL, City Manager of the City of Denton, on
behalf of the City of Dentan, Texas.
Given under my hand and seal of off'ice this day of 2011.
My Commission Expires:
STATE OF
�t
� COUNTY OF
Notary Public
This instrument was acknowl ef e on this � rY(day of S r1�,
2011 by 1J�ilYVIVX.�' 1 n�}af Legend Gathering
Campany LLC, a Delaware limi iability company, on alf of said liability company.
Given my hand and seal of office this day of 2Q11.
Notary Public, State of Texas
My Co�nmission Expires:
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on this (� day of �-e �,r, �,-e �-
2011 by `�vc �4 P-�� [� as S�n`.or U+�e +�s� • of Energy Assets Operating
Company, LLC, a Delaware limited liability company, on behalf of said limited liability
company.
Given under my hand and seal of offce this � day of � ,,,,b�e�c-- , 2011.
� ,�
Natary Public, Stat of exas
My Commission Expires:
...........
2o�D'e,v PLB<<, SUSAN S HU(�HES ,4
My Commiasion Explree
� September 23� 2015
4���
,. ,� , ,. . _ Eahibit A _ _ _ .
�`
�:�,�� ��ttiP�
To Consent to Assignment �r
Assumption of Obl3gations
iliGHT OF WAY LICENSE TO USE CERTAIN CITY PRUPERTY FQR
PLACE�►'IENT OF TRANSMISSION i'IPELI�'E5
TKE STATE OF TEXns
KNO�W ALL MEN BY THESE PRESENTS:
COUNTY �F DENTON
THA'T the City af Dentan, Te�as, a home rule municipal carparation
("Licensor"), acting b}� and throu£h its daly autharized City I�4anager pursuant to
Denton Deve]opment Code Section 35.16.19.7.li., for �tf�e cansideration set out below,
the receipt and sufficiency of r��luch is ltereby ac.ki�n�vledged; does hereby �rant �mto,
Ener�y Assets Operatin� Company, {"iicensee"), its successors and assi�ns, tiae ri�l�t
to enter upon, construct, o}�erate, rnain#ain, repair, replace and expand oii and aas
pipelines in certain �arc�is af iand ar easements owned by the City nf Dentan in
Denton County, Texas. Licensce to cross rnads, streets and easemznts under the
jurisdiction of Licens�r as described in attached ��;hibit� "A" attacl�ed l3ereto and
incorporated herein ti�� reference (`'Licensed Premises"). Licensee sh�l( pro��ide "as
built drar��ings" to th� offiee �f the Cit}� En�inecr and to the Fira Marsltal of the City
af Denton upan construction. t..icensee may amend k�xhibit `'A" upon ���ritten
cansent by the City otDenton by provad�z►� tlie locauon of additional proposed oil and
g�s gipelines to fl�e City Eng'sneer aa�d to the �ire Marshal of tl�e Gity of Denton.
Licensec shall� provide '`as built dra��ings" to the off ce of tl�e City En�ineer and to the
Fire Marshal af the City of B�titon upon cnnstruetion af proposed oil and �as
pSpelines added by amendment to Eshibif '`A'�. Compensatinn for adtfitional toaci,
street and easement crossings 1'ar prapased oi] anci �as pipelines aclded ,by �mendmc;nt
to Exhibit `'It" shall be paid to the City of Denton purstiant to the terms and
canditic�2is of this a�reenzent ("Licens��'}.
Section a-Ahplication.
7'ize Licensee has subniitted a complete applicatian for the license to ihe Develapment
Re��ie�v Com�niriee of the Cit}' of Dentoi� ('DRG°'), a plan acctarately shot��in� the
proposed location, course and ali�unent of ihe proposed pipeline(s); a HTitten
�pplic.ation. whicl� applicatio�� sha�}r tl�e time, manner, means a�id inethod of die
propased construction, the pt�rtirular commodity prnposed to be transported throc�gh
tl�e pipeline(sj and the m�.�imuin }�ressur� :�nd maximuin temperature under ti;�ivch tlie
sanze may b� pumped or othen�•ise caused or perrnitted to fio��� through an�r and 'all of
the parlicular poriians of the pipeiine(s). The apglicaiion ineludes:
�
�'ar;:l rs�lprojcela`auw siivcd',prujectstctioc• parkS fL�tncCgy rxsets ap�h'atUn_ a� rm�� licen.r IG-WUZducx
a, �'Via�s or schematic drat�7n�s, in a format to be approt�ed by DRC sho��•ing ihe route
v��itliin ihr city of each pipeline including its location ar�d elevatian in ever�� street �
(elev�#ion need not be supplied for �Aiherin� systems, �r if not econamicaliy feasible};
b. The diameier, narmaI operatin� pressure range �nd the maximum allowable
operating pressure of eacii e.xisting pipeline; otl3er tl�an a�athering svstem, v►'ithin the
City; •
c. The �naterials transported by each existing pipeline wlt�iin the city;
d. The location of shuiaff ��alti�es for every se�ment of a pipeline in a sneet;
e. The business address and telephane number af the person•responsible for the
operation of eaclt eaisting pipeline; ,
£ The husiness �ddress and ielepl�Qne ntunber of tlle o���er of each existing pipeline;
�. The telephone number of at least one emer�ency contact a��ailabEe on a 2�-hour
basis; and,
li. Certiiicates of insurauec for the covera�es set forth in thi� License; and:
i. The na�ile, address and telephone nuinber afi Licensee.
_j. Such other information as the DItC shall reasonably request tllat reiates to placemcnt
of the pipe[ine's in the strzets and � to apprflpriate compensation herein.
An application revie�v fee of � I.000.00 shall be paid by Licensee at the . time �eac:li
application is sub��iitted alon� �yith an aP��lication revie�v fee of $�OO.t}0 per rigl�t of
�vay crossing and �250 �er aaseme��t crossing_ Said plans shall cansist not only af the
plan Uut alsa af a suitable rrofile, arcurately sho���ing the lacation of a!1 cutaff valves
relati��e ta the location of all streets ur aileys across or alon� v►jhich the proposed
pipeline(s) shatl be laid. 7'tivo copies thereaf �lnng «•ith tw�o copies af ihe applicatioiz
shail be presented to the oftice of the City En�ineer and ta fhe Fire Marsliaf of the Cit��
of Dentnn. One of the copies af !he plazl and grniile delivered to tt�e Cit}{ Enei»ezr
shaU be a producible negati�Je, No canstruction sha13 be�in tuztii such plans hat�e b�en
revie«�ed and appra��ed by the afi�ice of the City En�*ineer and ta the Fire �4arshal of ihe
Cit�r of Den�on. The application is incorporated hcrein.
Sectiou 2. Tertns and conditions.
For and in consideration ot� the execution of this Lic�nse and the mutual
proinises aud co��enants of the parti�s hereta, it is mutually promised, und�rstond a�yd
a�reecl as �'ollo�vs, to �a�it:
I, Term. Tliis License shalE be far a ter�n of ren { I U) years unless tenrtinated
� , c ,
i
v:'ira! r,tiprnl���+'1���'shorcJ'�nrjccts;�xnc� pnrks ii��cncr�� •rss��ts ���crutii�, co mw� liccnsa I G-0�4-0:.duc�:
ea�•lier as prorid�d herea�ler. �
2. A'Catcriaf transparted. �,icensee may operate pi�lines authorized under tius
License for the purpose ofi transporrin�; the material or materials indicated in the
appfication or in accordance or in r�ccordance �47t� any norice liled with the Directors
pursuant to subsection 3. below. 1f' Licensee changes the nzaterial trtxnsportcd in a
pipeline, the Licensee shall notify tlie Directors in accardanGe u��ith subsection 3.
below. � .
3. U�dating iatoxmation. Licensee shail update permit applicatiot� infarraation
within 30 days afrer ehan�es occur. Licensee shall not iransport in a pipetine any
materiat other than materials set forth in its application and prior notices, ar operate
pipelines in excess of their maximum o}�erating pressure or disable any shutof#'valve,
��•ithout notifj�ing the Directars of such claan�e ten da}s,or more prior to such change.
Upon rectuest by the Directocs, made n� more tirequently than aculually, Licens4e shall
certify in ��ritin� to th.e D'uectors that Licensee's inforn�atian f led v��ith the city is true,
correci at�d camplete. .
:�. Not Author'rzed b�� License. '1'his License does not authorizz che Uatisport or
distribution of nalural gas by Licensee ��•hose use of streets is subjeGt tq tity action or
apl�raval under Te?►as Rerised Civil Si��rutes Article 1175.
5. Option ta 'Terminate. i.ic�nsee shai! ha��e tlie aption to tern3inate this License at
any time upo» �i�7ng the Licensor ��•�zit�ten notice sixty {60) days zn advance of such
ternunatian. and upnn termin�tian shall pat be eiztitled to any reinibursements of the
iicense fee fram tl�e Gity.
6. Uphon to Terminate. Licensor sh�ll haZ�c the apfian to cancel and terminate this
License for failure of Licensee tn compl}� �aritit any pro�risioi�s �r requirement
cont�ned in tlzis I.icense after sixty (G0} days �rritten notice to do so. �
7. Condition U�on Terminafian. Upon termination of this Liceusc, Licensee shall
abandon the Licensed Prc�nisNS l�avin� ail im�ror7emen#s on or tn die Licensed
Premises in a�ood and serviceable ccraditian, or I,ice�see �na�7 remave ti�e
inlprovei3�e�its upoi� uritten ca�lsent by the Cityr. � �
8. Abanclonecl pi�el'ene. 7n the event a pipeline ihat is permitted by this License
becau�es � abandoned pipeline; Licensee shall noiify lhe Dir�ctors as sc�on as
practicable. Tl�e Cit}° may request the Licensee ro remo��z such abandoued pipeline
1'rom tlie street {and if obJected to by Licensee, onIy if City Council so dixects), ancf in
suelt instance. Licensee slialE obtain al1 buildin� pern�its and street-cut pen3�its, and
elfect suc1� remo��al u�ithin 120 days. Lic�nsee shall not be required to pay any fees
atader this Lic;ense for �fn abandoned pi��eline fall�tx7in� the datc: of its �bandoiunent;
ha���ever, Licensee shaIl nc�t be allo��ed any credit or rebate for any fees previously
paid for an abandoned pipeIine. �
[
s`seal rsttipn�jccls�rv«• +h�rcd�projects�acir- par�.ti I h�caer��• v�cis n�crating cu ru�c liccnsr !U-Oa.07.ducx
9. City tnspectian. 'The City retains tlYe right to make visuai. noti-invasive inspectians
of the pipeline and on request of the City from tin�e to time, to require Licensee to
provide available recards ar data to demonstrate its current complianee ��ith the tertns
of ihis License. Licensee shala pay io tl�e Fire Marslial its customarv fee for pipeline
inspections. �
10. Cnnsideration. (a) Jn consicieration �f the eYecution af this License, Licensec
shaIl p�y an initiai License fee in tl3zse �mount of One Thonsand Dol3ars ($1,000.�Q)
per Local Str�et Crossin�s, �'ifieen Hundred Dotlars ($IS00.00) per Collectar Slreet
Crossin�s, and Ttia�o Thousand Dotlars (�2,000.04) per Art�ria! Street Grossin�s per
pipeline{s1 appro�red by this .License �af�able upor� Licc�nsee's execucinn af tliis
Licet�se for a te�1 year ternl. Licensee shall pay a fee of Ten doll�us, ($1�.04}, per
tinear foot to the Cit} of Denton fnr a iicense to cncroaclt upon airy of l;icen,sar's
easement, for a ten (1Q) yzar tenn upon executian �7f this a�reen�e�it. Licensee shall
obtain �vhate��er rights and perrnission. otl�er than t��e City of Denton, that may be
necessary when Licensce encroaclzes o�t an easement_ License shall pay any and all
�amaunts as mal� subse9uenfly be set by ordinance as autharized in this Sectian 2
(10}(b) beln«�, The payinent shall be made ta Licensor at the offce of the Citti
Manager, City of Denton, ? IS E. Mcltinney, Denton, Tetas, 7b?O1. 7'l�e license fee
payment shaFl be e��Iasiti�e of a.nd in addition tn all geaera[ appiica�le permit fees and
all municipat taxes of v��liatever nature, incluciin� but not ]imited to ad �=alnrem taxes
and special taxes and assessments fnr �vbfic iznprov�ments. Licensor map notify thz
City of additional oil and �as pipelines by submittin� proposed dratm�ings of the oil
and ga.� �ipelines. .4dditional oil and eas pipelines cna�� be added to the initial t�n {i0)
year terni at tlie amounts se� for abo��e for Loca[, Callectar or Arterial Str�ei:s per }'ear
per pipeline upon v►�ritten conseizt of ihe Gity Manager: The forc�oin; fees ar�
commensurate ��itli Ehe city's expenses in administering, supei��isin�, inspectine, and
regulating �ipelines in streets.
(b) The City does not n�air�e by assessing the fees her�in and e�:pressly r�serves its
raght {i) under Texas T�x Cade § i82.0?5 to mal:e a reasonable law�l char�e far tlie
use of a street in the city b}� a"publie utilit}�", as def�ined tlierein, ta distribute gas, and
(ii) to assess any otl�er law�iut fees ar char�es. Further; rrnthin� contained in this
License shall preclud� the Citr from imposin� other dr adclitional fees or charges for
the use or presence oi pipelines in its streets if ti�� City is requirecl or allu���ed tn assess
sucJa fees or char�es pursuant to Texas Ta� Code § 182.02�, ar other appiicable federal,
state or lacal law, no«� nr l�ereafter esistinc. v��hich auti�orixes the City to ma1:e a charce
for the use of its str�ets in e�cess pf the charges set forth in tliis Sec.tion 2(10) (a).
Such other f�es t�r char:,�es, if assessed b}� the city, shall be in additivn to and not in lieu
�f the char�,es sei forih in this Secti�n ?{l4) (a), co the exient ailo�ti�ed by taw, but the
remaining i�erms �nd provisians of tI�is C.icense s1ia11 reilyai�� in fiiI] f�rce and effect,
save and except of �ny conl7ict �viti� tl�e a��aEicable law tinder 4;-hich the other fees or
cliar��es are asscssed. �
l l. O�tion to Rez�ets•. Licensee �l�all ha�e the option of rene�tirin� a�zd extendin�
�
ai�aral �st;projecis?n�« sh:ved'�fuaeclslcaoc- p�rk:s ll�kncr_y a<xl.c uper�ting ct� rn�n liecnsc 10-01-07.dncx
the term of this License for one additional tenn of ten (10) c�ears, b}� �iving �iotice of
reneWa� 1CI �V�itill� io tlie Licei25oT iiot 1e55 thnn niiz�ty (901 days in advance af t�e date
of termii�ati�i� of tlze initial (l(l) ?��ar term. The ticense i'ee ar pay�n�ent sl�all be
adjusted by ihe Cons�srner Price Inc�ex (CPIj for Ihe additional ten-year ierm or as may
be set by the City Gouncil by Ordinance. �
I2. Canstruction Upon Execution. Licensee 5�ta11 ha+�e tl�e reght to be�in
coi�struction of oif ai�d �as pipelines u}�on tl�e execution of this License bS� aIl parties
herc:to. Licensec; shall �btain ali appticable Ciiy permils fron� the City Engineer,
whQ shall apprnve the plarls and s�ecitecatians for the cxossing of the right of ��ay or
easement. License� sI�all obtain a pernui to operate the oil and gas pipeline from the
Fire A9�rsl�al of the Ciry of Denion pri�r ta a�ti��tting the oif and ¢as pipeline.
E�;cept as may be permittet� or auihorized by the Licensor, no street ar highti�ay isx it�e
City of Denion sliall be biocked ar obstructed durina eatistructian or rerular
mainte��ance after coiistruction. The placement of ihe oi) and �as pipeline si�aIl
iylterfere as littlz as praciicable with t�e use of the streets, sidewalks, all�ys, easements
or priv�te properh� snd s9�al! be in accarcfance �vith the directives of tl�e cily Engineer
of the Cin� of Denton. Licensee sl�all bore �mder tl�e Licettsed I'remises and shall not
open cut any of the Licensed Premises. If Licensee is f�und ta be usin� tl�e Licensed
Premisrs fnr otl�er purposc.s thalt thase �ranted lzei�ein. this License shall be nal! and
void and Licensee sllall haFe i�o furtlier ri�hts for Licensed Pt�emises usage.
I3. Insurance anc� Indemnit^��. Licensee sliail prot�ide or eause to be provided the
insurance described below upo�� eKecutivn of this aereement.
a. Cumrnercial General Liabili��__ Insurance. This �c►��era�e must inclade
premises, operations, blowout ar e��Iosion, products, complete operatians, blanket
contractual liability, under�round pruperiy dama�e. braad farm property damage,
independent contractors anc3 }�ersonal injur��. ius ca��era�e should be a minimum
Combined Single Limit c�f $1,00�,000 }�er occurrence for Bodily injury and Praperly
Damabe, �'iie it�surance shall also include coverage for environment itnpairnient.
b. Automoi�ile Liabilih�� Insurstnce.
{ i) A�(i��inium Combiized Single Limit oF $�04,OU0 per occurrence for Sodily injury
and Property Dama�e; and
(3) The Business Auto Polic�� n�ast sho�v Sy�mboI 1 uz the Cover�d Autos Fortion af
the [iabiiiiy sectio�� in itein 2 ot' the declaration.5 pA�e �ti�hich includes co��era�e for
Izired, leased and no�t-ourned ��eliicles. .
c. V1'orker's Gam�ensatian__I_nsnrance. In addition to lhe miuimum statutory
rec�uiremenls:
v x:'ac:J e,t;rrpj«ts`tuu sharcd;�n,jecu���uc- parks lh:rnrn;�• oss�LC ��perniing co iu�� tirrnsr IU-oa-(17.dics
(lj Em�loyer's
$1 QO,OOQ for e�.cii
disease; anrl
Li�bility limits of at le�st $1 {1(1,000 far each accident,
empinyee, and a SSOO,dQO paticy limit �ar oecitpatianal
(2} The insurer a�rees t� H�aive rigllts of� subro�ation a�ainst the city, its
officials, ager�is, employees, and ��olunteers far any work performed for the city
by tl�e Licensee. �
(3) The Licensee shall compty with tlie pro`�isions of t�•itl� Seciion 40b.09b
of t13e Teaas Labor Code and ruie ?s�r�c � y o. t I 0 nf tlle Te�as VJarker's
Conipensation Comniission. .
d. E�cess Liabtlitr' lnsurance. Excess i.iabitity Insurance shall be pro��ided a�tf�
limits of not less ti�a�� Fiti�e Miilion, ($S,U00,004.00) annu;�l a��re�ate.
e. Indemnifics�tian. Licensee sliall and liereby does indcmnif�•, detend and sati�e
harmless ihe Licensor. its officers, agents and �mplc�yees Prom all suits, actian.s ar
claims of �,y� cl�aracter, nan�e and description brought for or on account of any. injaries
or darna�es receired as susiained by any p�rson, persons nr praperty on accotint of the
operations of ihe l.icen,See, its a�,�nis, emplo}�ees. cc�nt�ractors nr subcontractars; or on
account of any nz�li�ent �ct af fault of I,icensee, i�s a�ents, employees, contraetc�rs nr
subconlractors in connection ��jith the obligations of the Licensee �mder tlus A��reernent;
and silall pay an}� jud�ment, ���ith costs, ►i�luch may be obtained against the Licensor
gro���ing out oF such injury� nr da�na�e 11�TCLUDING BUT NOT LIMI'T�D TO
LIABILITY. GLAII��S AND DAMAGES ARISING IN ��HOLE OR IN PAR"I' FRO1�I
THE i�'EGLIGENCE OF 1'NE CITY OF DENTON iN THE COURSE ANn SCOPfi
QF PL•RFORMtNG ITS D�T�S LTNDER T�-115 AGFt�E'VIENT. IT _IS
U�IDE�tSTUOU AhD AGREED THAT TNE INUFA�INITY PROViDED FOR fN
T1�iIS �ECTiON IS AN i1�DEh4NITY EXTENTED BY _THE LICENSEE TO
1NDEM�iIFY �IVD PROTECT THE C1'�'Y UF DENTO�, TE3�AS AND/OR Ci'S
OFFICERS ER�T'LOYEES DEPARTMENTS_ AGENTS OR SERVANTS
Vi�HE7'HER THAT :�IEGLIGEA1Ci� IS TI-�F. SQ1�E aR THE CONTRIBIJT1��Ci UR
COI�'CUREN7' CAUSE OF THF R�SC.ILTANT I�T.TURY. I?T:ATH � ANi�/�R
DA�R.�GE, �
f. Ge�ncral pro�•isions
(1} r111 policies sE�alt be endarsed tti read "THIS PULICi' ti��ILL I�TOT BE
CANC`FLLrD OR NQN-REI�'EV4'ED WI"I"HOUT 30 DAYS ADVAI�'CED
«%RITTL-N NnTiCL TD '['I-IE �1�v'NER !lND TH� CITY EXCFP7' Wf1EA�
THIS POLiCY IS BEING C'A�'CEI..LED FOR ?�O�1PAY3��EN'T 4F
PREMIU��, 1N 1?��HICH Cr1SE ]0 D?�1`S ADVAI�CE ��'RITTEN NOTiC�: IS
REQli1R.T:I�''.
:.
a:`,rct� c�C!prujccG�'Jt>ti� :fisuedtpm��x�lcaoc- p:+rks I h«rc ,}� ass�ns pprrotin� ou m�+ hcansc I U-0d-U7.docx
(2) GommerciaE tieneral Liability and Automobilc LiabiliCy insurance s�all be
written by campanies uYth A: VTfT or better rating in accordance ii�ith the
current Best l:ey Rating Guidc .
(3) Comrnerciai General Lia6ility, Aut�mobile ,tiability, and Excess Liability
insurAnce poiicies shall namc as "Additionat [nsured°' the Licensor and its
oi'ficials, a�ents, employees, and volunteers.
(4) Certif�catcs of insurance �nust reflect all coverages and endorsements required
by tl�is section. � •
(�) Co��era�� shAll be placed with insur�nc� carriers licensed to do business in the
State af T�xas or with noiiadbaitted carriers that have a financial rating
cornparablz to carriers licensed ta do business in Texas appraved by the City.
l4. Performancc Bund, Licensee sliall providc n}�erformAnc� bo�id, in the amount of
�ift; tlivusand dotlars, ($50,U00.00}. Licensee may� add additiona! �il ttnd gas
pipelines a.nd the Directar of �n�ineerine slia(l determine Qie fu��ount t�F the
performar�ce bond for additional oi! and �as pi�eiines as a�pro��ed by the Licensar in
accnrdance ���ith tlus Agreern�nl. rn any eve»t the �nzount of the perfonna��ce band
shail not e�ce�d fifry thousand doIlars ASO,UQU. The performance baiad shall be
executed b1� a sureiy company authorized tu, do busitzess in il�e State of 1'exas in
accorda�YCe �vfth Chapter 2253 ot'che Texas Gnverml�ent Code.
15. Saborc�ination. 7`�is License is subordinate to ihe Licenspr's inierests i.n lhe
Licei�sed Premises, Lice�zsor reser��es the ri�ht ta use the Licensec� Premises and the
airspace above t1�e Licensecl Premises for any pub[ic purpose allowed by law and ta
da and perznit ta be dane, an}� �vorl: in conn�ction therewith �;�hich may be de�med
necessary or proper by the Liccnsar on, across, aIang, under or over said Licensed
Premises; and ���Ixenever Uy reasan of said work in connectipn ���ih said other
purpases it shall be uecessary by t��e Cit}� to alter, cl�ange, adapt, confornl ar reiocate
Licensee's lines or �ther propert�� in any laart of tlie Licensed Premises occupied by
the Licensee, such �tterations or changes or relocations shall be made by ilie Liceusee
w•hen ordered i►i ���ritin� by� the I.i�ensar pursuant to directiot�.s f.rom the City� Manager
��•ithout �uiy claitn for reimburscment for tlae costs of the relocation or for damaees
against the Cit��; pro��ided. t.hat Licensee sliall at al! tin�es �e eE�titled to recei�•e from
tl�e appropriate �o��ernm�ntal bodies, excludina the Git�f, pati�ment for alteration �r
relocation of its lines or iacilitics to �+�hich Liceasee may be lawf'ull�r entitled iu�der
applicable federal or state la��s �4ith respect to relflcation pa3-ments.
]6. Conflicts. In tize event ol'an}f con.�lict berii•een the parties hereio sucl� that either
party brines or commences any legal actioxi or proceeding related to this a�,reemeni,
includin�, but nat limited io an�� action purscc�stt t��e provisions of the Tex�s tJnifonn
Uecla��atory Judgmenis Act (Tex. Gi�r. Prac. �: Reny. Cod� �37.001, et, seq.), the
' parties hereto arree tn v��aiv� miy �u�d all ri�hts to attorneys tees to v►�hicI� the
preti�ailin� �arty mi�ht ather«�ise I�e enlilled.
,-
x��rCal eSLtttrqlrcLS:run sI1N'ed:projects'0.d11C- j7i11'IiA it1�C11Cf:S\' �7iiCLS Qj7L•f.`L(]pa°, l'J�fON' IIC[IISC I Wli�i-O%.QUCX
17. Naticc. �ny notice �r conl�nunication required in 'the adm.in.i.stration of ttiis
License shall be s�nt to ihe Licensor as follows:
Cih� Manager of the City af Denton
2l5 E. 1�9cKinney
Dei�tan, Te�as 7b2Q 1
Any natice ar communicatian required in tli� ad.niinistration oi this License shall be
sent to the Licensee as f'ollo�r�s:
Ener�� Assets Operating Cc�mpany
Atin: Mike Watkins .
100 Throckrnorton, Suite 1?00
Fort Vi�orth. Te�as 7610?
1$. 1'oiice Pan•ers. I.icensee is subject ta ali police po���ers of the City of Denton in
the placcmcnt and maintenan�e of its oil and gas pi�selines, as well as all odier
ordinaiic�s as currently exist5 and as may be an�ended in the future of tl�e City of
Dentan. 'fhe City of Denton retains re�ulatory� auihority over ali health, welfare and
safely issues that may arise it� regard ta the transport of oil and gas in the pipelines,
esce��t ta the e�teni preenip#ed by Siate ar Federal la�v. Liccns�r shali liat�e tl�e right
to inspect Licensor�s s�tfety re�arts and to require the ins��ectiott or review of the niI
and gas pip�line by the Fire Marshal, or his designee or the City� En�ineer, or his
desi�i�ee, of tl�e City of Dei�tUn. Licensor sball pay the City of Dento�� the cast of thz
inspection by the Fire Marshal, or his desi���e or the Ciiy En�ineer, ar his desi�nee
of the City af Dentan.
19. Non-Traasferr3blc Without Cansent. '!'I�e ris�hts �ranted btir tl�is a�reement
inure tc� tlZe betzetit of the i.icensor. The ri�hts shalt not Ue assign�d or transterred
titirithout ihe e�press «�ritten eonsent of the �overning hady of the City af Denton. Any
rec�uired consent is to be et�idenced by ordinance nr �t;solution oi'the City Council of
ll�e City oF Denton. � .
20. Transfer or Partia( Assignment. F_.xc�pt ;�s other��ise providec� herein, or except
as inay be hereafier determirzed bS' the parties, no part,� to this A�reem�nE maJr seil.
assi4,n, �artially assign or transfer its interzst in this fl�reemerit, c�r any af its ri�hr,
dutics, or oblisations herew�der, witliaut the prinr �ti�-ittej� consent of tlie nttier party.
t�'llenetrer the consent or the ap�roval of a party is reqtfired i�erein, sueh party shalL
not u�lreasonably ��ithiiolcl, delay, or deny such consei�t or approval. No trattsfer,
assi�mment or other chan�e in richts granted by tiiis I.iceGZSe l�ntil tl�ere is paid ta the
Cit3� a tra�isfer fee af Five Hundred Dollars ($5(10.i}0) to the City
Z1. V4'aiver. No ���aiver or modification of this A�reen�ent or of anv covenant.
condition, limitation (ierein cantaix�4d sixa[t be �raliii unless in tivriting and dui}�
execLated by the pam� ro be cllar�ed therewith. I�ro evidenec of any ��►��iver or
.
�.'vcrl cst,�rvj�cts\ru�� sl�nr�d;�mjecf.;`x:wc- pxrRs Uticncrgy� a5�c�� oprrnting co ro�s ficcnsc I U-U�1�0 i.doc�
modification sl�all be of%red or received in evidence in any proceeding arising
betrueen tl�c parties heret� otrt oi or atfecting tliis Agreement, or tl�e ri�ltts or
obligations of the parties hereunder, unless such «�ai��er or modificatian is in ��vriting,
duly executed. The pariies furtl�er a=ree tliat thc provisions af this A.riicle ���i�l not be
���aived unless as herein set forth •
22. Unenforceahie Yru��isiuns. I�� tl�e e��ent that any one or more of the provisions
hereof containe� in tlus Agreem�nt shall i'or any reason be held to be im�alid, iliegal,
ar unenforccabl� in any resp�ct, suc�z in�alicii .ty= illegality, ar unenforceability shall
not effect th� otlter provisions, and the Agreement shall be canstrued as if such
invalid; illegal, or ui�enl'orceable pro��ision hAd never been cvnlained in t�us
Agreement �
23. Entirc Agreentcnt. Tlais A�reement aizd the c�l�ibits attached thereio, constitute
il�e entire agreement ainong the parties hereto ��zth respect to the subject matter hereof,
and supersede any prior understandin�s ar ��ritten or nral a;reements between .the
parlies ��7th res}�ect ta the subjec� matter QF lhis Agreemen� No amendmen�
m��difcation, cancellazi�n or alteratiUn of tlie terms of this 11f*reement shall be bu�din�
on an}• ��irt5- hereto unless th� sam� is in «�ritix��, dated subsequent to the date hereof.
and is dul}� atathori�ed and e:�ecuted by the parties hereta.
2�. Na �'Vai��er for F�ilurc to Enforce. TUe failure of either parly to enforce or insist
upon cQmpliance v��itl� an�r of the tern�s or canditions of this A�reement shall nat
cnnstitute a�eneral �t�aiver or relinqttishmet�i o1' any such terms or conditions, but the
same shall be and remain at al] times in full force and efteci:
2a. Captians. Tl�e captions contaii�ed in tliis Lice��se are fnr infon�iationa! purposes
only and shall 'nnt in any �vay af%ct the sabstnnti��e terms or cvnditians af this License.
26. La�vs of Texas. This T�iaense shal) be eoti�er�ted by a�sd canstrued in accord�nce
with kl�e laws of tl�e State of Te�as. Venue for any disput�s arising from the
�aerfarmance c�f this License shal! be in L)entnn County, Texas. Alt pa�•ments under
this 1.iceuse sl�al] take �tace in Denton. Goui3ty. Tesas.
IN Vt'TTNESS 1�JHER}-'��}t', the���� hereto ha��c 4�ecutec� this License in
ciupficat� origii�als nn t�ii��_%'`�day o ?OOyf.7
LiCC�iSOR .
THE CITY �F DE:�1T� ` AS
Ei •�� `
y
G�arge C, a�npbell
G'rty Manager
s`aral esti�lfP�CCl5�d014' Si1NClI`�vi�jccss',cauc• parks Ih,xner_��• csxrts op�vat ing cu row liccnse !�-�)�-t17.doc�
ATT�ST:
JENT�IFER Vi'ALTGRS, CITY SECTtETARY
13Y:
APPR ED AS U LrGAL F R?V�:
EDWTI� R�I. S �K. CITY TTORNEY
8Y:
LiCENS�E
STAT� 4F TE�i�iS
COUNTYOF DENTON
§
�
�
By �`�'Z�
Tit e: v'� �E� %��SI� E�
Before me, !�' tlie und rsigned notary pub�ic, vn
this d�.y person � y a ear�d , the
�L�� �f , know� to me; ta b� the
person �+�l�ose name is subscribed to the fore�oing instrun3ent, and acl:nowledged to
me tlz�t he/she e�:ecuted that instrumei�t fc+r the purposes �nd consideration therein
e�pressed.
Given under my haild 1nd seal ofofiice this�dati� of ?Q07.
' RHILLIPS —
" Of TBXd!
=xPiIES
�3�
JENNIFER J. PHIlLIPS
Notary Publ'ic, State of fiexss
My Commissiort EMpires
. � nu�ust o2, �ooa
�.� .�.��.,, � I - �� ��i/,
, � p ' -
1 �
o.'rcal ��s'.�t�ge�L ���ce shot.�il`.pn�ie.;ls,ea�h•-;siul:. ill'mnnr�� :u±ct� ��p�r;tE�n_ ��: rv�� :octn,r I nau.U7 d��c�
sTATr �r Z��x�s
coim'TY Or DE?�J7'ON
Beton me, _ G�rv n� ./� ��� �,�ffi�e undersi�ned notari� public, on
this dav persanally appeared G't��G � C. C�,�.ir.���c� the
�,�,., .��r� �aa ��z --- of C� � c r=_ � c- ��-..o E�riown to me: to be the.
persoTose name is subscribed to the fore�oing instrument, nnd aci:novtledeed to
me tliat helsh� eKecutec� th�t i��strument fi�r the �xTrposes' and consideration therein
e�:press�d.
Gi��en urldL�r my hand and seal c�l�uffice t(iis �� day ofG��' 2007,
� '����d� UNDA HCI.LEY
����*1 �.!i 6
j�5� Notlry Public 5tate of Texas
�� X$��,,,F . MyComm�sslon Expires
�,%� �„��� DbCember 06, 2004
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Ciry W flenton Encroachment Feas - RUAOT-OOCA
Energy Asscls dperating Compeny
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