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Home My WebLink About919489 ...;I,Je'-.......,.;....,..,: ,',/',"',.-,..:.......,,-, , ""~.....'..,-"..,,~,,4i..L:;,"_ ,','.'-' _~,. ~ '..., 0:.1..!-,,';,!;' .f~, '¡'.';,;:, .~" .,-::¡', '-'_" ",'~ '...--,'"'"...-.,t,....,"''",..' ',:., {ipS ~...~ " RECEIVED 6/20/2006 at 12:39 PM RECEIVING# 919489 BOOK: 623 PAGE: 774 .JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY r i'"\ '" t'J 7 '-' U t..., . 4- ' PIPELINE AGREEMENT "THIE AGREEMENT, iB mad€ and £nt-er-ed into £ff-ecti v€ .a.s of th-e .lBt rlay of F-ebruary, 2006, by and b€twesn BELL BUTTE GRAZING PARTNERSHIP, A LIMITED PARTNERSHIP, WhOB€ nddr-eBB iB % :Edward M. J3own, Attorn-ey at Law, J.0J.5 EaBt 3900 Eouth, Balt Lak-e City, Utah B-4l24-J.J.lD (h€r-einaft-er r-ef-err-ed to as JlB€lJ. Butt-e ") and FAIRWAYE OFFEHORE EXPLORA"TION, INC., A "TEXAS CORPORA"TION, authoriz€d to do busin€SB in th€ Etat-e of Wyoming, whoE-e ~iJ.ing nddr-eBS is J.343D ~OrthW€Bt Fr-s-eway, Buit-s No. BOO, Rouston, "T:exas 770-40 (h-sr-einaft.:er r-ef£rr£d tO.aB II FairwaYB ") . W :1 "T N J3: B E J3: :I' R: :I'HA"TWHEREAS, B€ll Butt-e iB th€ owner of the .NWl/4 of E€ction J. 7, :I'ownBhip J.9 North, Rang€ J.J.9 W€Bt I £th :P.M. I £Iituat-ed in Lincoln County, Wyoming i and WHEREAS, FairwaYB has r-equ€Et£d Bsll Butt€ to grant to FairwaYB a non-£xclusiv€ right to utiliz-e c€rtain portions of sairl NWl/40f said E-ection J. 7, in conn€ction with itB oil and gaB rlrilling and producing operations involving the F€deral ~o. .l-B W€ll Burf.ac£ location in ths NWl/-4NE1/4 .and NEl/-4NWJ./4 of £laid B€ction J.7, of said "Township J.9 ~orth, Rangs J.J.9 WSBt, 6th P.M.; .and WHEREAS, B€ll Butt£ and FairwaYB deBir-e to £nt-er into thiB Agr£-ement in accordanc-e with th€ terms .and conditionE h-ersinaft€r S€t :forth. :::~::::::~~~ ·¡~~~!h~9 ~:¡~ii¡::~~: !' :~~!:~:!~:!:!:~~::~:~~, ""£""~'_.""'-""'."',,,,,,,----~---~,,,-~--,,,,,,,,,;,,--,,-,, ' -.,..,~,...~.. '.'..........................". ""... ~_-'---"J_~, ",'~ "~,'.__,,...,',. _-.0,., ',' '-"." '... "..,"'.__'~.....,..".",.,"'; , , ·"·'o'9îS489 (00775 NOW, "THEREFORE, in consid€ration oÍ the premises, and the 1¡;,UJ;Il oÍ :I'en and NO/lOO Dollars ($lD . DO) , and other valuabl-e consideration, in 11and paid to Bell Butt-e by pairways, the receipt wher-eoÍ is h€r-eby acJmowl-edged by Bell Butt-e, .and inconsid€ration oÍ Bell Butt-e ent-ering into tlris Agr-eement with FairwaYB , and Pairways' agr-e-ement with Bell Butt-e to k-eep and perlorm all oÍ the cov-enants :and agr-eements on Pairways I part to be k-ept and perlormed b€r-eund-er " as b-er-eÌTIaÍt-er set Íorth, the parti-es b€r-eto covenant :and agr-ee as Íollows, to-wit: l. Bell Butt-e her-eby grants to Fairways a non--exclusiv-e :right to construct, install :and maintain one six inch production pipeline and one two inch £uel gas lin-e, only, within a tract oÍ land 50 £-e-et wide, 25 Í-eet on -each side of cent-erline, and 2,BB9.37 £-e-et or l75.11 rods in length in said NWl/4 oÍ said Bection l7, :I'ownBhip 19 North, Range ll9 W-est, -6th P.M., Lincoln County, Wyoming, in conn-ection with its oil and gas drilling and producing operations involving th-e Federal No. l-B Well locat-ed in th-e NWl/4NEl/4 and lÆJ./-4NWl/4 oÍ said B-ection l7, TOwnBhip 19 North, Rang-e ll9 West, 6th P.M., Lincoln County, Wyoming, which said tract oÍ land is sometim-es h€r-eina£t-er r-e£-erred to as th-e "Pr-emises II :and is mor-e particularly shown, identiÍi-ed and described on Exhibit lIA ", :a:nnex-ed her-eto, and by tlris r-e£-erenc-e spectlicall y made a part ber-eoÍ. 2 -~",,,,,.:,,~.,,.,,.:'..',.. "",---~-","''''',.- ': ",.,',LA~,'.,' ' "~~'"''''''"''"'''''''"'-'''''--'--'''-'-:'''''',''' ,.. '.,...,.,..;....".",', q --, """,....,..._._.,....'}..'~'. J, 091.9489 C00776 2. During the J.i£e o£ thiB Agreement, Bell Butte, and othèr parti-eB BimilarJ.y authorÎ2ed by Bell Butte, Bhall .have the right to UBe and -enjoy the Bubject premiBeB aB the rightB JJ.erein granted to FairwaYE with reBpect to Eaid premiBeB are not -exclUBive. 3 . "The cDnBideration paid by FairwaYB to Bell Butte concurr-ently JJ.er-ewith repreBentB the consideration £or the -execution o£ thiB Agr-eement J:Jy the partieB and £or the UBe o£ the Baid pr-emiBeB, through the 3lBt day o£ January, 2007, EUch date CDnBtituting £or the pu:r::poBeB JJ.ereo£ the J.a.Bt day o£ the ÍÍIBt J.icenBe year o£ thiB Agr-eement. -4 . J:.n the -event FairwaYB I UBe o£ the Baid premiBeB Ehould ceaBe ort-erminat-e £or any caUBeor reaBon, F.airwaYB 1DaY Eurrender the pr-emiBeB and thiB Agreement J:Jy m;:¡; l ; l1g or t-endering to BelJ. Butt-e a 'proper recordable releaBe and J:Je reli-eved o£ all obligatiOTIB lmn-E'TthiB Agreement -excepting, and Bubject to, the per£ormance J:Jy FairwaYB o£ all o£ thoBe obligatioTIB to be kept and perlormed at the time o£ BUch termination, a.B JJ.er~:';'l1;:¡fter Eet £orth and 'provided, including, without J.imitation, the proviBiOTIBO£ 1?aragraphs lO, ll, l2 and :17 JJ.ereo£. 5. -Upon -execution o£ thiB Agreement, 1"airwaYB Bhall pay to :Bell :Butte, at itB addreBB above Bet Íorth, or at EUch other addr-eBB æ3 :Bell :Butte 1DaY deBignat-e by written notice t01"airwaYE, the Bum o£ $3,5D2.20, and Ehall :pay to :Bell :Butte, in advance, :an 3 m¡:;::ji11i1;fiiHwma œLli!t~¡lm~ f!:¡:íti~r:::*::i~~:< ~~¡·t;~· .~:~;..::, f~¡iill~~~Ù¡f¡W~ij ;~m::~~:::;:;:::¡ 'Aj!,:t~~I:':j:':'~ .....'...........'.....,....,.'-., .'"¡.,"""'",',.'...,.,,,"._........ <>O~...~<...".-..''"·"ø.',''~.... 0919489 r' ~ !"\ 7'7 7" !'-" \.) lJ :annual .r-ental payment in th-e Bum o£ $l, Î5l.l0, which payments ax-e to be adjliEt-ed according to th-e :formula as l1er-eina:ft-er Bet :forth, OIl or be:for-e the :1st day o:f F-ebruary, 200Î ,and on or be:for-e the :1Bt day o£ F-ebruary, o£ €ach ~icense year ther€a:fter BO ~ong as thiB Agr-eement r-emains in -e:f:f-ect. A license y-ear l1er-eunder shall be F-ebruary:1, through .January 3:1, o£ the :following year. "Tl1e ::following :formula shall be utilized by the parti€s to det-ermine the .annual .r-ental payments Dnder this Agr-eement as to FairwaYB I liEe oÍ the .Pr-emises :for -each additional one (:1) ~icense year periodB a:ft€r th€ :firBt ~icens€ y€ar: .Ra = .$l. Î5l.l0 .x ~ Ib wher€ .Ra abOV€ Bet ::forth iB the annual .r-ental payment due on or 1:>e:for€ F-ebruary :1, 200Î, and on or be:for-e -each F-ebruary :1, therea:ft-er to be llBed in det-ermi.ning th€ amountB r-eguir€d to .r-enew this Agreement :for the n-ext. BUCC-eeding .r-enewal y€ar Dnder this .Paragraph 5 i .I.a is the CDDBumer .Price Index all "Urban ConsumerB, U. S . City Averag€ , all J:t€InS (:19B2-B4 ]3ase=l 0 0) published by the U. B. :Department o£ Labor, ::for th€ 1Ilonth o£ Nov€mber immediat€ly pr€c€ding th€ :1st day -4 ...J / · ."....-"''''~.....-......--,.,-,.,.....-'..4O"......_''-_....''"'~,,--=. -"~",~--,,,,,,,,~,~_,~,,.-, . '<.0:",0"'" .-.,'..,....-.._...." ',' ,__~"-, r,,' ......~_...._~~~._~,_~_.__.. ." "".,.,.;.~<......"'"""""....',_._,.-,.~.'. .. 0." '. _"""....,._.. 091.94b~ C:00778 oÍ F-ebruary oÍ the applicable Ienewal year of adjllBtment¡ :and :rb is the consumer price index (as def.ined :above) Íor the month of February, 2006. :In the event the consumer price ..index is discontinued or Ievised I such other government or other .index with whicb it is Ieplaced .sball be used .in order to obtain substantia.lJ.y the .same Iesult as would be obtained iÍ the consumer price .index .had not been discont.inued or Ievised. ]?rovided, :furtber, l1owever, that .in no eV€1lt .shall the annual I€1ltal payment as computed :above :for Fairways' liBe of the ]?Iemises :for any giv€1l Íuture Ienewal license year period, ever be less than the amount of the annual Iental payment :as computed above :for F.a.irway.s' use oÍ the premises :and paid :for the immediate preceding license year period. 6. Fairways sb.all not .bave the rigbt to sell, assign, lease, .sublease, rent, create a lien on, Dr otherwise .in any way or manner tr:anB£er this Agreement or :any part or portion thereof, or:any o£ its Iigbts :and .interests l1ere.in and l1ereunder, or :any part Dr portion thereo£, without the written consent of Bell Butte being :first .had and Dbtained. Î. Bell Butte .sball pay all County taxes assessed against said premises, based upon the present valuation thereo£. 5 ;!::~~,:;!ti:;:¡:::;:; ,'HI.I~~~ ~f!}¡~~~~~~mimr~ ::::i;::::~::::~:.::::: ;::::::~:;!;:;:lli:::~~ ~ft4t1~lir~~~i4j ,.....r:.,,'...Y1I.......'..,......'..,,;........:........___'...h-.-_'.'_,....._,__h":":__',--,--,--,-..,..,,,,, , ....".......'.'....,, . '->~',,~....,','~"" ' .--~".~_".",~,."'..,.,.'.;.'_;,,', 'T.,: . ü9i9489 C00779 , . FairwaYB Bhall pay all County tax i:lBBeBBmentB .bi:lBed upoo 1m.y and .all i~rovementB whatsoever placed upon Baid premiBes .by Fairways. FairwaYB Bhall also pay all County taxes, iÍ any, i:lBBesBed against Baid premiBes .becaUBe of additional value placed thereon :for tax prn::poses .by reason oÍ improvements placed upon Baid premiBes .by Fairways, and Fairways Bhall, within thirty (30) daYB a:fter writt.en notice from Bell Butte, reimburse it Íor Fairways I Bhare thereof. B . Bell Butte makes no warranties or representatiODB l1erein witb. T€Bpect to tl1e title to Baid premise and Fairways I Tights l1ereunder are €XpreBsly Bubject to all Buperior rights, including, .but witl10ut limitation, tl1e Íollowing, to-wit: (a) All reservationE, limitatiODB, and conditiD1lB of the 1IDderlying Pat€Ilts covering Baid premises and tl1e Tights of any party, or parties pursuant thereto¡ (b) All grantB, conditionE, limitatiODB, and re.servatiODB, if any, of record, Dr arising .by operation of law, and the rights of any party or parties pursuant tl1ereto¡ (c) All easements or rights of way of record and all easements or rights of way, if any, not recorded, .but which have been established and now exist by operation of law upon Baid premises Dr any portion, Dr portiDDB, tl1ereof¡ (d) ~l1e right of Bell Butte to graze, authorize and continue the grazing of livestock on, near and around the premiBes ¡ tl1e rights of tl1e OWIler (s) of tb.e mineral estate (s) ¡ the terms and conditionE of and tl1e rights of Bell Butte and of all party, or parties, under all existing grazing, oil:" gas, 1I1ineral or other lease (B) , access road agreementB, Burface oWIler (B) Dr other 6 / , ',...,--,......., ',' ...,.,...........~.....,'.. ....~,~-.,'O-X,,_....,.'.,..._, ,-,-,<,_,,.,,,.,-,, ". '''.-:..,'',=,'",'"..,'.' '.'., 09194,89 r"'\f'\78Q !..,uu t>." agr-eem€11t (s) , and all other l-eases, r-egulationB , li C€11B-es , agr-eem€11ts and permits of -ev-ery kind and natur-e, pres€11tly issued and -existing Dr .her-eaÍt-er issued by authorized party Dr parties, including the U.B. TIepartm€11t of Int-erior, Bureall of Land Managem€11t, covering any portion , or portionB, of th-e lands included in the Bubj-ect premises i and the Tight of Bell Butt-eto T€TIeW Dr -ext€TId said l-eases, lic€11Bes, permits and agr-eem€11tB, or €TIter into n-ew l-eases, lic-enses, permits and/ Dr agr-eem€11ts at the sol-e discretion of Bell Butt-e, and continue the Tight to graze and authorize the grazing of livestock on .and near and around the said premises. (-e) "T.he Tights of any party, or parti-es, 1JI1Ò.er .any 1.1I1derl ying deed constituting the T-ecord r.h¡:::¡;n of titl-e £rom Pat€11t-ee to Bell Butt-e. 9. At Fai.rways' sol-e cost and -expense, and during the construction, T-epair .and maint-enance of Baidpipeline, and during the li:f -e of tbisAgr-eem€11t, FaiIways shall: (a) Maintain.and k-eep 13aid pr-emiBes cl-ear of T-efuse .and litt-er caused by FairwaYB. (b) Not distllIb .range .iTn.provem€11ts, such .as £-encing or r-eservoirs, -etc., .i£ .any, witbin the pr-emises i or, wher-e distrrrbance is nec-essary, Fairways B.hall l-eave such iTn.prov-ements in the original or bett-er condition, .as det-ermined by Bell Butt-e :and Fairways. (c) COnBt.ruct.and maintain adeguat-e wat-er br-eaks on all distllTbed Blopes, i£ .any. (d) Ef£-ect a minimum of vegetative or, Boil distrrrb:ance, consist-ent with practical maint-enanc-e operations, and will smooth :and maintain all distllrbed ar-eas to conform .as n-early as practical with the adjac-ent t-errain, .and provide ..and maintain adeguat-e wat-er drainage to minimi:z-e -erosion. (-e) Co~ly' with all Federal, Btat-e .and local Laws, orn;nrmces, .and €TIactm€11ts, .and with all lawful .rul-es, T-egulationB and orders of all regulating ag-ency, or ag€11ci-es, applicabl-e tó FaiIways' use :and maint-enance of the pr-emises :and operations under this Agr-eem€11t, 7 !:::::i:::::~~:::t::~~ !::.:.:.:.:..fi:':!h:¡j @:::Ii~:::~~:;:::::;: I¡~:~~i~~;:::~::;:::; ~~~~.JHlli~j£~fm~f~~ .."......'........~.......',...,..,......",...~~....,_...-, 091.9489 . '.' , "',....~,.,.,. . ·~.....,.......,""N"".,''--'--'=''-_''-",..-,,'.. "'. "'o·".':t.:....-,,·,,--,-_.,.,.,',',,'."-. r"~ '"'781- l·UU including, but with aut ~imitatian, €TIviranmental,wat-er, naiEe and air pall uti an cantral, -erasian cantra~, taxic wast€, l1a2ardaUB substances and mat€ri:al issues and matt€rs. (:f) Indemni:fy and hald and cantinue to' indemni:fy and ha~d Bell Butte and its partners, a££icers, ag€TIts and €mplayees £r€e and harnùess :fram and indemni:fy and de£€TId them, and €ach 0'£ them, against (a) any and all damages, claims, casts and €xpenses resulting :fram Fairways' £ailur€ to' camply with .said Federal, Btat€ and ~acal Laws, ardinances and €nactments and rul€s, r€gulations, and arders set :farth in preceding Paragraph abave; and (b) any and all damages, claims, demands, casts and €xpenses arising aut of damage to' liv€stack and ,praperty ar injury to' ar death 0'£ Fairways' €mplayees ar any ather perEan (s) whamsaever, where such injury, death ar damage ariEes during, ar in any manner aut 0'£, r€sults Íram, ar is in any way connect€d with Fairways' rights and a,perations under this Agr€ement. (g) Indemni:fy and hald and cantinue to' indemni:fy and hald Bell Butte £r€e and harnù€ss £ram and against any and all claims and li-ens llpan the pr€mises :far labor ar mat-erials :furnished to' Fairways, its agents, ar cantractars and shall tak€ :all necessary actiOJ1S to' :farthwith r€mave such ~i-ens :fram all public recards ar atherwise, as r€quest€d by Bell Butt€. Ch) Leave all gat€s clased, and in thase instances where said pipeline shall crass -existing £€nce ~ines, gat€s and cattl€ guards .shal~ be install€d and maintained :by FairwaYB in accardance with speci£icatians agr€ed to' :by th€ ,parties, ar at FairwaYB' aptian the £€TIce may .be restar€d to' its ariginal canditian. (i) Canduct all aperatiOJ1S her€under in a :fair and r€asonabl€ manner, and all necessary pr€cautians shall be tak€TI to' avaid damage to' gat€s, bridges, culv€rts, cattl€ guards, Í€TIces, r€servairs and ather stack watering :faciliti€s. All damage to' the abave-named :facilities .shall :be immediately reparted to' Bell Butt€ and shall :be :farth- with repaired by Fairways, as nearly as passibl€ to' the c01lditian -existing priar to' .such aperatians. Any public l1a2ard, .such as damaged bridges ar culverts, caUBed:by Fairways' use 0'£ the premises', .shall :be mark€d ar B / · < 0·91.9·· /'1] 89 ~ C00782 barricaded, .and proper .st-eps taken £or the r-epair ther-eo£ by Fairways. (j ) Not £€1lC€ the whol-e or .any part o£ the premises included in this Agr-eement, without the writt€1l consent o£ Bell Butt-e .being £.irst had.and obtained. (k) 7ake r-ea.Bonabl-e Bt-epS to control all i.n£-estation o£ noxiollB weeds on the .subj-ect pr-emises as reguest-ed by Bell Butte. (J.) 'l'ake r-easonabTe st-eps to not permit any dogs or other animals to be k-ept in the ar-ea which could callBe any death or damage to li v-estock. (m) 'l'ak-e reasonabl-e st-eps to :Ln:form its -e1I!Ployees, agents, and contractors o£ the pr-esenc-e o£ livestock near and aroU11d the pr-emiBes and o£ the need Íor caution when J.ivestock ar-e present. (n) (l): Concurrently her-ewith obtain and Íurnish to Bell Butt-e prior to the commencement o£ any operations hereU11der, a Corporat-e Bur-ety Bond in the amoU11t o£ .$lO, 000.00, to assure and secur-e the requir-ed c01I!Pl-etion o£ the sur£ace reclamation r-equir-ements o£ the pr-emiseB pursuant to the provisions o£ J>aragrap.hs lO and l7, her-ea£t-er, and maintain .such Bond in good .standing and Íurni.sh to Bell Butt-e, at its addr-ess herein, .sati.s£actory writt€1l proo£ o£ such good .standing on Dr .be£or-e February l, o£ -each license year her-eUnder, U11til the provisions o£ .said J>aragrap.hs lO and l7, ..hav-e been c01I!Pl-et-ed by Fairway.s to the .satis£action o£ Bell Butt-e. A copy o£ .said Bond mark-ed "13/', isal.so annex-ed her-eto iiI1d by this re£erence .speci£ically made a part hereo£¡ and In the -event the reclamation requirements under (l) above aI-e not c01I!Pl-eted by Fairways in accordanc-e with the provi.sio11B o£ .said :±>aragrap.hs lO and l7, her-ea£ter, Bell Butt-e, at its option, .sball ..have the right to confirm the de£aults o£ Fairways hereU11derand receive and UBe. the Corporat-e Burety Bond ÍU11ds to restor-e, and r€habilitat-e the said pr-emi.ses i and (2): Concurrently herewith (l) obtain, maintain and deliver to Bell ButtesatiB£actory -evidence o£ Fairway.s policy o£ liability insurance in a c01I!Pany .satis£actory to Bel Butte and naming Bell Butt-e a.B a co-insured party insuring Bell Butt-e against all J.iability, including, 9 :~!l¡~im;~~~~l¡l;:~ ....................-....,.,.,.,.,..."...,'.,".'..,......---...........,..... ","... "'·",·r.'....___.·...· '..... ,",..,.-',~'-'-'.'.......",_..,,',.,'.-,..'.', .,'....-',..',;." """";:,' :'.'.",.,.,.,.....,"'._."-....~".'.-.., 091.9489 r'·.... '"'783 !. uu without limitations, property damage and personal injury in an amount no less than one 1I1illi01l (.$l, 000,000.00) which may result ::from Fairways use and drilling and producing operations hereunder and in the :ar€a. . Euch insurance policy must r€main in ::full ::force and -e::f::f€ct ::for so long as is speci::fi€dby Bell Butt€ but not to -exceed three (3) years a::ft-er the t-erminati01l o::f this Agreement. A copy of such insurance policy mark€d Exhibit "C", is also annexed her€to and by this re::ference Bpeci::fically made a part hereof. Fairways to ::furniBh Bell Butte 01l Dr befor€ February l, of €ach r-enewal year her€under, a writt-en Btatement ::from such insurance company that the policy is in ::full ::force and €f£ect and Bell Butte is a continuing proper authorized co-insur€d party ther€under Íor €ach Bucceeding r-enewal year her€under i :and "The provisions of this entire Sub-1'aragraph "(n) " o::f thiB J?aragraph 9, are in addition to the proviBions of J?aragraphs lO, ll, l2 and l7, berea::ft€r and not in li€u ther€o::f, or anyo::f them. lO. TIpon the t-ermination of this Agr€ement Íromany cause or reaB01l, Fairways shall surr-ender the -entire pr€miBes to Bell Butt€ nnd Bhall l€ave said premises in a condition which complies with all laws, including applicable -environmental laws, and all other liiW£ul rules, regulations and orders i and the -entire Baid premises will be :::forthwith r€stored and reseeded by Fairways to its original condition as nearly iiS possible iiS Boon as weather conditions permit, the reseeding to be done by drilling with a drill equipped with a depth regulator, to :assur€ ev-en depth o::f planting. Seeding will .be d01le during the months o::f Beptember and I or October, Dr at BUch other ti1Ile :as agreed between the parties. "The seeding Bhall be r€peated until a reasonably satisfactory stand is obtained. All such reseeding is to be completed by Fairways in a timely marmer using seeding speci::fications designated by the Bureau of Land lO ',·".""3."""'·",·Utf<:w:.-".·.·,·.,"~;,,""'.:'....·...,,'<, ..': ,'0', '-'--'._.~...J.."., """"""'",-,""'~:'>"""'. "'~~""~'.....',';'.'.: ,'~,~.,:<....:=:..:..:....',--"..-';".......:';..",.'..,. ,.,',¡:.:.,.:...',.;,;.,....."',':,..~".'-'....- 031.9489 C00784 :Management on adjacent Federal BectioIlB and approved by Bell BÚtte prior to the connnencement oÍ EUch initial Eeeding and .reseeding. II . "Tlris Agr-e-ement is made upon the condition that Fairways snrlll :perlorm all the covenants and agreements .herein set Íorth to be perlorrned by it, and iÍ at any time there shall be any deÍault on the part oÍ Fairways .hereunder, this Agr-e-ement Ehall TIot t-erminate, -except as .hereÌTIa.Íter provided to-wit: (a) :In the -event Fairways ~hrlll deÍault in the payment oÍ any annual .rental payment pr01T!Ptly on the date when the Eame shall become due and owing hereunder, ·and Fa.i.rways shall Íail to pay the same to Bell Butte within twenty (20) days a£ter written notice oÍ such deÍault being given .by Bell Butte to Fairways at its address above set Íorth, Dr (b) :In the -event Fairways shall deÍault in the ·perlormaTIce oÍ any other covenant and agreement .hereunder on its part to be kept and perlormed, and iÍ Fairways ~nrlll Íailto cure such deÍault Dr to connnence st-eps reasonably designed to cure such deÍault within thirty (30) days aÍter written notice OÍ such deÍault being given by Bell Butte to Fairways at its address above set Íorth, or a£ter weather and soil conditioIlB ÍÌIst permit .repair, iÍ the deÍault be OÍ EUch a nature, then and in such -event, Dr events, this Agreement at the option oÍ Bell Butte, shall :forthwith terminate and -end and cease to -exist, and the Eubject premises shall .revert to Bell Butte; provided, .however, EUch termination Ehall not .release Fairways :from the :full performance oÍ all covenants, agreements :and obligatioIlB .herel1l1nPT on its part to be kept and perlormed at the time oÍ EUch t-ermi:nation including, without limitation, the provisioIlB oÍ this .Paragraph ll, and .Paragraphs lO, 'l2 :and l7 oÍ this Agreement, which II f¡mI~~~~!!;l¡!~~:li :~mt~1;;~l;~1~;~~; I~-m~~ i~:":':".:".;..:" . . , .:;:~; ~) :m~i~1~;1;m!~¡lli.~~~ "' . ~-;·,"o:.·.·.·'T.'~1:r'~"'·I~.-.·,-=·~~'~'¡71.111'"'!"""""';'¡:',L.I'.l-'~" -,'- ',' .'.-',...,'........."1.....",' 1.:.-'-~.......'":.,..-.:t",..'......r"....,.t;I'!<.,"'."'.:_. ... ., . ·"r;·.-;·<~',·',,' , , . " ",,":."~~';~".'. \,:, 091.9Ll89 C00785 includes Bell Butt-e I s right of .specilic perlormance with respect to EUch accrued obligations as her-eina.:ft-er provided TInder said :Paragra.ph l2 hereof, :and :all of such coven:ants, agr-eements and obligationssb:all :all survive the t-ermina.tion of this Agr-eement :for :any callBe or I-eason :and remain in :force :and -ef:f-ect TIntil :fully per:formed by Fairways in :all respects. l2 . ::In addition to the provisions of Paragraph ll, abov-e , this Agr-eement is personal in natur-e :and monetary damages in the -event of default by Fairways hereunder may not be adequate, :and the .:parti-es also agr-ee that this Agreement is .specilically -enforceabl-e :and in the -event of Fairways' default with r-espect to :any of the coven:ants :and agr-eements her-eunder on its part to be k-ept :and :perlormed, FaiIways sb:all pay to Bell Butte :all costs :and -expenses of Bpecilic:ally -enforcing this Agreement, or ins-eeking damages, or in pursuing :any I-emedy provided hereunder or by the statutes of the Btate of Wyoming I whether such Iemedy is pursued by filing .s1.lit or oth-erwise I including a Ieasonable attorney I s f-ee. l3. This Agreement does not in :any manner constitute a conveyance of :any title, interest or estate in :and to :any .:part of the pr-emises herein described in said Exhibit "A", but the Iights her-ein gr:anted to Fairways are in the nature of a license, only, :and .shall not ripen into :an -easement of :any kind or nature. l2 J " ':'":'·'~':.;:"'·I~c.~~:"'~~1~;';';'¡~~'f--:.r..',:'~":I:f~..-":;':>-t-:n· '" ",'~¥':~·io'...:r.;~, ",' ',',,·':'O··"·',','!..,:C-;.··..·.....^·.·.·I'.·.~'" ,·':"'Tn!~-~...···;.,'-!'<':':,...".l:~·,.",~',.,'¡.,'r "'r:n.-'~·;·' ';,'".·¡:.1i·.",:4~",...;;.i..I/.i!..'d¡:'.:i·;.'· .:,;,. -",:;...:.,.,...-1;....,,";;..,. 091.9489 100786· ~4 . FairwaYB Bhall .hav-e .nin-ety (90 ) daYB :a£t-er th-e t-ernrination oÍ thiB Agr-e-em-ent to r-emov-e all OÍ its perBonal property, i:f :any, :from Baid pr-emiB-eB. l5 . FairwaYB Bhall :not .hav-e th-e right to llB-e, :and Bhall not tiik-e :and llB-e, :any wat-:er :from Baid pr-emiB-eB abov-e d-eBcribed during th-e -:entir-e li:f-:e oÍ thiB Agreem-ent without th-e writt-en COnB-ent oÍ :Bell :Butt-:e .being :firBt .had :and obtainEd. ~£ . .NotwithBt¡::mn;-ng :anyt.b.ing contain-ed .her-ein to the contrary, thiB Agr-eem-ent Bhall :forthwith t-ermi:nat-e :and -:end upon Baid pr-emisEB :no longer being rEquir-ed :for thE pm::pOBEB afor-:eBaid by Fairways. T7 . .NotwithBt~nning :anything contained ,her-ein to thE contrary, upon thE t-ermi:nation oÍ thiB Agr-e-em-ent :for :any callBe Dr r-:eason, including Fairways' r-eli.:nguishm-ent oÍ all oÍ its rightB .h-erEund-er, Fairways Bhall alBo :forthwith pr-epar-e, €X-ecut-:e , iicknowlEdge .:and dElivEr to BEll Butt-:e Íor its approval, BUch document :for rEcording with th-e .Lincoln County R-ecord-er, XEmmer-er, Wyoming, as will :fully rEl-easE :and t-:ermi:nat-:e all o:f Fairways' rightB .h-er-:eunder ¡provided, .howEV-er, such t-:ermi:nation shall not in :any way Dr manner r-:el-easE Fairways :from thE :full perlo.rmanc-e oÍ all COV-ena:ntB, Agr-e-em-entB :and obligationB on its part to be kEpt :and per£ormed .her-:eunder iit the time OÍ such t-ermi:nation :and all oÍ BEll :Butt-e's rights :and I-emedi-:eB .her~under in the -:ev-ent oÍ d-e:fa11lt by Fiiirways Dr other t-:ermi:nation oÍ this Agr-e-em-ent, :f or :any callBE Dr ~3 11" Bli . ij,' ,,d.- ~;.,"¡.:¡:r.. .:;':,¡-.;' ;~;:;,¡'Þ.!iii"i,..w¡ DcliG~,.uf~ I:~I'~ .:;::.gø~ ji~' '~:~~:~:::~ 1:.'.,!Ä'.~'~i.j.'." (;;\¡j~:¡;;ì~$1U¡~~1~~ .:t~ß.~;i~~~~ft~j! ,. ü:~ri·g4b~i· ': :J"'~"~"""'''',' '.' k"·'A&..~~·""¡"""'-""""'·""_··"'-\;.'".oY· ~'.,' ~- -.' \:., ',' "",~ ...........,... ..,~~,=.....:.: ,.' ,...,....\.0.",..,.' r :~n?87 ',' 'L' . "_. ,j . r-easOD, :and including all o:f said cov-enants , agr-eements :and obligations to bE perlormed by Fairways hereunder at the time o:f such t-ermination, shall all survive the t-ermiI1ation o:f this Agreement :for any cause or reason and r-emain in :force and -e:f:f-ect JIDtil :fully performed by Fairways in all respects. lB. 'This Agreement shall be recorded by Fairways in the o:f:ficial records o:f Lincoln County I Wyoming, on or bE:for-e May l, 200£ I and a compl-et-e recorded copy o:f this Agreement shall be :funrished to Bell Butt-e :for its:fil-es and r-ecords, no later than l5 .days .after dat-e o:f r-ecording. 19. Bubj-ect to the provisions o:f :Paragraph £) above, the t-erms, conditions, and provisions o:f this Agreement shall be b'i"rì'il1g llpon :and inure to the bene:fit o:f the parti-es .her-eto and their successors and assigns. 20. .Any notice contemplated to be given to Fairways or Bell :Butt-e sn;:¡ll be in writing and shall be 1I1ailed in the Dmt-ed Btat-es Mail, R-egist-er-ed or Certi:fi-ed Mail, Return Receipt Request-ed, at the addr-esses o:f Fairways and :Bell Butte above set :forth in the :first paragraph .hereo:f, and shall be -e:f:fective :and complete llpon the dat-e o:f posting and mailing. 2l . ~.his instrument covers the -entir-e agreement between the parti-es, and no repr-esentation or statements, verbal or writt-en .have .b-e-en made modi:fying, adding to, or changing the t-erms o:f thiB Agreement. l-4 ,~J / ;'~ " .,._.~,.....",...........,.,.",.......--,--",=...;"~"",.,,.....- ,.....0;0;"...--"........ '"",~''''....,,_..'''',. ,',~ ""'.-".~".'.'-',..'." . ",'" .', ,....'".....,...,.,,-' 09i9489 C:00788 22 . "Time is o:f the essence o:f this Agr-eement I -and o:f each o:f the t€IIIlS -and conditions hereo:f. 23. .No waiv-er .by either .Party o:f -any.breach or de:fault .by the other party on any occasion I -and no -election .by -eith-er party to -ex-erciBe or :forego imy right or remedy llereunder or r-e1ating h-ereto on any occasion I Bhall .be d-eemed to .be a wa.i ver o:f imy other .breach or de:fault or to .be im election to pursue or :for-ego imy right or .remedy on any oth-er occasion. 24 . "This Agreement sball .be governed ..by the laws -and jurisdiction o:fthe District Court o:f Lincoln County I Xemmer-er I Btate o:f Wyoming. IN WITNESS :HEREOF I the parties bave -executed this Agr-eement as o:f the dat-e o:f the ..Notary acJmowl-edgments contained llerein .but :for all purposes to .be -e:f:f-ective as o:f the day -and year :first abov-e writt-en. .B-e1l .Butt-e: "Tax n. No. B7-0424£B2 .Bell .Butte Grazing :Partn-ership I a Li1I1ited :Partnership .By ~~PJ.u/' ~ :Its Managing Gen-eral :Partn-er Fairways: Fairways O:f:fshore Exploration I mc. I a"T~ ~U:v.~-t:~~~~&f~rviw~ J.5 ,:::~:*::f.:*::¡:ij ::¡1iMiM:~~::I!1 :~¡~~1m;[: ~ml~~~n~1;mftI!~ .....~_.,.'~' ~....~""·...=""·o,,,, ""._,-",.,-' ',",' - --"-"~--'-"""'''-""~..,.......,, . ,'·,,,·.-.."""-_'"'.._..·...........,_~........·,·~.o._,,...c.,..,'_".'. 'C-" ..,. _'.,..."'..........'...,...-'~,.'""...,',.,' .",' .',.£.l'...:.'." "...,.., . '0919489 C00789 ACKNOWLEDGMENTB BTATE OF ~ ) ) BB COUNTY OF~~ -'l-Th :I'b-e :for-e~rume:nt was acknowl-edged b-e:for-e me this ----=:, day o:f , 2006, by ~ ~ Managing General Partn-er o:f Bell Butt-e Grazing Partn-ersbip, a Limiti:d J?artn-ership, on behal:f oÍ said Limit-ed Partnership. WITNESS my 1land and o:f:fi cial s-eÇ!.l. y~~..'-..~ @) tDWARDM.BOWN ~ JlDTARY PUBUC-S1'ATE OF UWI . .W~ J972EASTCIMEMONf WAY ., SAI:r lAKE fTfV UT 841- ... Canm. ~'''04{11J,m NOTARY :PUBLIC R-esiding at: ~ ~ ~.I ~ My Commission -expir-es~ . ~ ~ :z..~, :;J.lDé) 7 BTATE OF WS COUNTY OF ~ r'(' t.S BS ]3~ori:1ll€, tb-e 1lDd-ersign-ed aUthO~itìi. ' (ß NC?tþry~ublic in and :for Eald _ County, personally ap:pear-ed ~ b-" t#2-l---C to me ::personally Jrnown, who being by me duly sworn did say that b-e, with tb-e capacity d-esignati:d by bis signatllI-e on th-e document to which this c€rti:ficat-e is attach-ed, is an o:f:ficer or agent, o:f J"airwaYE O:f:fshor-e :Exploration, mc., a ~-exas cox:poration organi:z-ed and --existing 1lDder and by -virtu-e o:f the J.aws oÍ tb-e Btat-e o:f :I'-exas, and that b-e as EUch o:f:fic-er or agent and in such capacity being authori:z-ed by its ByJ.aws and / or Board oÍ TIìr-ectors EO to do, Eign-ed, E-eaJ.-ed, -€X-ecut-ed and acknowl-edg-ed beÍori: me tb-e :for-egoing instrument on behal:f oÍ said Cox:poration as his -vol1lDtary act and d-e-ed and tb-e -vol1lDtary act and de-ed oÍ Eaid Corporation :for tb-e 1lB€B, purpos-es and consideration th-er-ein ~r-essed and contain-ed by signing tb-e name oÍ th-e Cox:poration by bim as such o:f:ficer or agent and that tb-e s-eal, iÍ any, aÍÍix-ed to Eaid instrument is tb-e Cox:porat-e E-eaJ. o:f said Cox:poration, and b-e :furth-er acknowli:dges to 1ll€ that said Corporation -€X-ecut-ed the same. l£ . . ~ ~:~~,-,-.",,':::'::::v.>';~ ·.:.=""""'_......~_-",.."..":,·n"....I-':~. ....._~.,._......'.'.. . '-<;0.-"1;''''' C,,,,"~·,,,_·. ,""""1:'1:, ",""".~... ".' . ';"·;;'1·""';~r...""'-;",{.\".n,"'''''~- .,' ~";~,..~..~:r:.:;.'..-_,,...., " '09í94ti9 r' ')n? ' ','..( . 90' . . IN wrrNESS WHEREOF I J: .hav€ l1€r€lllltO B€t my OÍ£ic~ignature +¥J. :f~. d 111Y notarial E. €al DÍ oÍ£ic€ on thiB th€ . IS:! . day oÍ (\ , 2006. WITNESS my .hand and of£icial My CDmmiBBion Expir€B: ",...u". /1b\i' "'U~ 1": :*'i ~"I ~'. ...~. ...\,1\...... .... GEORGE WORSHAM MY COMMISSION EXPIRES fabruary20,2010 ':\fi '.~ :c: \Bell ~ \:a!Jr~ \:f:airwaysp:ipel:iDe06 .:agr l7 fIN::·:·:':':_:·:::;:' '·~-·:·:'N':':&j fffff;:~~:)!;::;~!~~m t:~~j\;!jf~!t~~~\ti~~ft ¿·.·j¡'·'~l~.!\~':&~\;.I1 :::;:~~~~:E:::::: ;:;~:;::~:;:;:;i;::~' . _ ' ,", ..;,;.:....;.':......;... - '. '_' Z:.'~' ;, . '~'0.;.:,:,:;M!;'~' , "..... .",;" ,~~., , ¡ ""~'-,~ , '..,.,....-..............' 0:919489 1909 !U.D, BRASS CAP S1/2 NE1/4 SECTION 18 ~ oi 1<)" to"" C\ U> APPARENT OWNER: PUBLIC uj II,) "- :3:\:. ~ ~ BEGINNING OF 19 PROPOSED PIPELINE f'I A T PROPOSED g CHEVRON PIPELINE tI) P.O.B. ST A. D+ DD Centerline of Proposed Pipeline N5B29'J5-L7BJ. P.I. 1+33--<"'PROPOSED CHEVRON PIPElINE --N49lJ5'J4"£. 1.32.53' 1909 J;.L.D. BRASS CAP 1/4 1/4 Section Line PIPELINE LEGAL DESCRIPTION A ìRACT OF" LAND lOCAìED IN THE NE1/4 OF" SECTION IB AND THE NW1/4 DF" 5EèTION 17. T19N, R119W, 6TH P.M,. LINCOLN COUNTY, WYOMING, SAID ìRACT BEING 50.00 FEET WIDE. 25.00 FEET ON EACH SIDE 0F"1HE FDLLOWlNG DESCRIBED CEN1£RLINE: COMMENCING AT THE NORTHEAST CQRNER OF" SAID SECTION 18 AND RUNNING SIB'54'59-W, 2412.31 FEET TO THE POINT OF" BEGINNING. SAID POINT LYING ON THE PROPOSED CHEVRON FEDERAL I-17M PIPELINE; THENCE N49'05'34"£, 1.32.63 FEET; THENCE N5829·J6-E. 7B3.85 FEET TO A POINT lYING ON THE LINE COMMON TO SAID SECTIONS 17 AND lB. SAID POINT LYING SOD25'28"W, 17B5.62 FEET FROM SAID NORTHEAST CORNER; THENCE CONTINUING N5829 'J6 "E, 152.16 FEET; THENCE N6737'19"£, 789.81 FEET; THENCE N4626'34"E, 271.D2 FEET; THENCE N50"34'21-E, fi20.23 FEET; iHENCE N69'46'29"£, 555.08 FEET; THENCE 571'04'00"£, 425.B6 FEET: THENCE N78'14'17-E, 54.21 FEET TO THE POINT OF" ENDING OF" SAID CEN1£RLINE, SAID POINT lYING ON THE W£ST£Rl Y EDGE OF" THE PROPOSED FAIRWA YS FEDERAL I-B WELL S/7E. THE BASE BEARING FOR iHIS DESCRIPTION IS S 025'58" W. 2639.72 FEET BETWEEN FOUND MONUMENTS AT THE NORTHEAST CORNER AND tHE LAST ONE-DUAR1ER CORNER OF" SAID SECTION lB. PIPELINE LENGTHS BY LANDOWNER PROPER1Y OWNER SECTION FEET RODS PUBLIC Sec.1B,ì19NR119W 916.48 -55.54 BELLBUTŒGRAZING Sec.17,ì19NR119W 2889.37 175,11 TDtals 3805.85 230,65 ACRES 1.05 3.32 4.37 (EXHIBIT "A ") "'~ " .',,~.;. '--:; ,,;, '.' . '-. -.' ;,,-',;j.'. : .<" .. ~,;;. ';, -- ", , r.... !"\t"'191 " ' ~,l; I . 2648.88 1/4 '.... 1909 G.LD, BRASS CAP -= ENDING OF PIPELINE AT PROPOSED FEDERAL 1-8 WELL P.O.£. STA 38+06 '" ::]/ ¡ t: .0 "t ~ ~ LEGEND ~ SEC710N CORNER lOCAìED P.I. POINT OF" INTERSECTION P.O.B, POINT OF" BEGINNING P.O.£. POINT OF" ENDING P.O.S.L PO/NT ON 5£LTI0N LINE ,2.. ðfÞ J1'YOM\~G Map Showing Fairways Offshore Exploration, lnc, Federal 1-8 Pipeline Route NE1/4 of Section 18 and the NW1/4 of Section 17 T19N, R119W, 6th P.M. LINCOLN COUNTY, WYOMING ATCn 9D6 Main street SURVEY1NG .EVBnstDn, WYDmingB293D PhDne No. (307) 7B9-4545 SHEET 1 OF1 J '--,"~-'~'''''''''''~.~-'~->--~=>'-'''''''''-''-. ·'·'··-"'~rr··'-·" , .. '. ,.-. ""-.,...",.....~'...-' . . <fro . .." (" :')r1"'192 -.IV'.}' . 091.9459 . ~~ì,'.: ]3002616" SURETY ]30ND KNOW ALL MEN BY TIIESE.PlŒSENT.8: That we (opemtorDaJDe) Fairways Offshore "Exploration. Inc~ a Texas Comoration liS Principal, ..and (.8urety11aII1e) V.s. .8necialtv InsurJUlce ComnJUlY lIS.8urety,lIIld bothPrincipalllIldSurety dulylUIthorizedllIld.qualified to do business in !be ..state ofWyoming, Me.he1dllIld:fumly bound untoÐe11Ðutte GrazingPllI1nership,liLimitedP.artneŒhip (W)mI1ing), whoseBddress .is do:EdwmdM.Ðown, 1015East3900 South,..saltIlike City, Utah 84U4,mthe5UD1 ofTen Thousand Dollars JUld Noll 00 ($10.000.00) lawful money of the UnitedStates, payable toBell Butte Grmnl! Partnershin. a Limited Partnershin. fortheuse .BDd benefit of saidÐellÐutte Grnzing P.artnership, liLimited P.artnership (Wyoming), for the:firithful payment of which we bind ourselves, our heirs, 1:XeCutors,.administrators m1d successors, jointly m1d severally by these presents. THE CONDITION OFTHIS OBLIGATIONIS.8UCHTIIAT, WRF.R"FA.SthePrincipalis orwillbe~edm:tbe.dñlling, redrilling, .deepening, repairing, operating, m1d plugging m1d Rh:mdnnm~t of a well Dr wcl1s and restoringthe well.site Dr .sites m1d .roads in1incoln CoWlty,m the State ofWyoming for the pUIJ>oses of oil or ßIiS productionand/ortheinjectiommdrlisposal of:fluids m !:onnection therewith for the following described land Dr well: x :B1anIœtÐond: Individual Ðond: To !:over 1111 wells rlrilled in the.state ofWyoming Pioeline Ri¢tt-of-Wavfor Federal 1-8 Well ..section:...11....- Township: 19 North Range: 119 West County: 1incoln. Wyoming NOW. TIiEREFORE, .ifthellbove boundenJ>rincipal.shall !:omplywith.a1l1beprovisions oftha.t certainAccessRoad,Drill.8ite, .and Subsurlàce Agreement.dated dfective July 1.2005, by lIIldbetweenÐellÐutte GrazingPllI1ner.ship, aIimitedp.artncrship,m1d .F.airw.ays Offshore Explorntion, Jnc.., li Texas Cotpomtion, including, but DOt limited to the proper plugging lIIld ahRnrlnmnent of wclls.and well5Îte restonúion, then this obligation is void; otherwise, the:Same.shall be.and remain in :full force lIIld dfect. JNIESTIMONY WHEREOF. said Principal has hereunto .subscribed its11aII1ellIld has caused this instrument to be signed by its .rluIy 1UIthorized officers lIIld its !:01ponrte orDOtary seal to be.affixed this _.day of·, . 2006 0 COtpomte Dr Notary..seal (here) Fairwavs Offshore "Exploration. Inc. a Texas Corporation Principal (company name) ¡Jd~ :By Name: Title: ate~ .P.auIDoyle .President (:EXHTIHT "B" 2 :Pag-eB) :Pag-e "l II JNIESTIMONYWHEREOF. saidSuretyhas caused this instrument to be.signed by its duly authmi7ffi officersanditscoxpornteor DOtary.seal to bellffixed this 16th.day ofFebmarv .2006. (COtpomte Dr Notary SeaI.here) Attestee: 13403 Northwest Freeway. Houston. Texas 77040 ..surety Mailing Address Date: fJ.;//Ú If){p :::::::::~::::::::~~;:: ~;:!:::;:;:;:;:!:::~~:;; ;1t;~~~~f:tmj~t~!'N~ I-.r..''''",-" '. \1)191:%89 POWER OF ATTORNEY (To be .used Wlth bonds issued on behalf ofD...s. .spECIALTY lNSlJRANCE COMPANY) PA002616 r- .... r'\ 7 9 3 '-' ~j U .Know All Men iJy These Presents T.hat, TI. S. SPECIALTY lNSURANCE COMPANY (the "'Company"), JI !:orpomtion.duly organized.and ~xisting under the laws oftw: Stite ofTaas, .and.having its principa1 office m Houston, Ihrris County, Taas, .does by :these presents make, ~onstintte .and Bppoint Edwinll.Fr.ankill, W..RusseUBrown, ~r. its 1rUe Jmd lawful Attorney-in-fact, with full power .and .authority .hereby !:onferred in its .name, place Jmd stead, to ~cute, Jlcknowledge .and .deliver JlßY .and .all bonds, reco¡nizances, undertakings or other instruments or .contr.acts of .suretyship to include rider.s, .amendments, Jlßd .consents of .surety, providing the bond penalty does 110t exceed T.hree Million Dollars (D,OOO,OOO) .and to bind the Company thereby J1S fully.and to the .same extent J1S if such bonds were signed by the President, sealed with the !:orporate seal of the Company.and.duly zttested by its Secretary, .hereby mtifying.and !:onfirming that the.said Attorney-in- :Fllct may .do in the premises. ..said .appointment is made under .and by.authority of the following resolutions of.the .Board of Directors of me U. S. Specialty lnsm.ance Company: . .Be it REsolved. that the Presldent,:any Vice-PresIdent. .any Assistant VJce-PresJdent,:any Secretary Dr :any AssJStant Secœtary Jiha1lbe.and JS hereby vt:Stcd WJth full l>Ower .:and JWthonty to .apJomt.any one .or man: .suitable peŒons.as AttomeY(s)-in-F.actto Trpresent.:and.act for .and on behalf of the Company .subject to the following l'Tt)VUIOns: AJIorney-U/-FJlcJ may be Biven .full power ~d JWthonty for.:and in the name of.:and of .behalf .of the Company, to .execute. ~w]edie.:and J!chvcr, ~y.and.all bonds, TCCO,gmzances, !:ontr.u:1S,.agrcemcnts.or indemnlty.and other !:ondlllonal Dr .obhgalD1y .undcrtalan~.:and ~y and all JlOllces.:and nocumcnts unceling or tcrmmating the CDmJW1y's liability thereunder,.:and .any .such mstrumcnts so .executed by.:any mch AnomeY-In-F.act Jihall be blndmg .upon the Company.as jf Jiigned by the .President Jind.scaled.:and cffected by the Corporate 5ccrctary. .Be it REsolved. that the signature .of .:any JWthonzcd .officer.:and.seal of:the Company heretofore orhcreaftcr .atrJXCd to.:any power of .attorney Dr .any 1:CJ11ficatc Telat1l1g theme by facslmlle,.and.:any t>o~ .of .attorney .or .l:crtifu:atc bearing facsinule Jilgnaturc Dr .1iu:sinúle.sea1 shan be vahd.and binding.upon :the Company with n:spect to .:any bond Dr .undcr1aIclng to w/¡u:h JIlSJIttachcd. (Adopted by.unan1111D1lS wntlcn œll.5Cl1t m lieu of meeting on July 7,2003.) In Witness Whereof, u..5. SPECIALTY INSURAN CE COMPANY .has caused these presents 10 be signed by its President,.and its .corpoJ'lite seal 10 be .hereto .affixed this 19th .day of January, 2006. Corpor.ate Seal TI..s. .sP:ECIALTY INSURANCE COMPANY By State of Texas County ofHanis ~ lJ.JX. ss: Michael J..schell, President On this 19m ..day Df J.anuary, 2006 before me personally !:aI11e.Micl1ael J. Schell, to me .knOWll, who, being by me .duly $wom..did .depose.and say, that.he resides in Houston, Texas, that.he is President ofU. S. SPECIALTY lNSlJRANCE COMPANY, the !:ompmly .described in Jmd which executed the .above instrument; that he .knows the seal of said Company; that the $ea1.affixed to .said .instrument is .such .corporate seal; that it w.as 50.affixed by order of the Board of Directors of .said Company; .and that he signed.his :name thereto by like order. .. -...... .--... ..........- :,,~:..."~..!t. .............-un {.._t:.:~~\ NoIary Public. St* ofT.... : 4 "':..i u... Commiuion &pirea: 0.". ...z No . ~W Na".....1D,2ØOI ~ (Page "2") ~ µ-y¡ 'QI~ ,NolaryPnhU, My !:ommission -expires JJ - J 0 r- DC} 1, Christopher L. Martin, ..seaetary ofU. .s..sPECIALTY lNSURANCE COMPANY, .do hereby !:ertify that the .above.and foregoing is II :true.and !:ouect !:opy of.a Power of Attorney, executed by said Company, which is still in .full force .and effect; furt.hennore, the .I~soll1tinm: of the .Board of Directors, set out in the Power of Attorney .are in full force.and effect. CorpOJ'lite Seal ouston, Texas this 16th .day Df 1n Witness Whereof, 1 .have .hereunto $et my .hand.and .affixed the seal of.said Co February ,2006. Chrlstopher L.Martin, Secretary / .= =-.."'-...,.c.I.......-......,.~."-.,,"'...=-~~,~..-...-,_ ··'.r',' ,.,,__.L~ __ ",",' .....""_-",,--'-"".....,_',.. ' ...',.......,._.....~'-'....,.;-. -v·,,·'................-1:'·.....-..',·,,-:,'''-_,·~·'·...·,..oe,,'...·..,,·,',·,"'· .~-'-.~'.~,"-~=-'-",." .'-.." .,--'...".... 09:t9LH:!~ ACORD... CERTJFJCATE OF LIABILITY INSURANCE ('..... 1"\794 "-' \)l.1 P~U~R (832) 295-0000 Lazy Insurance Services, Inc. J.2DDD Richmond, Suite 3DD ilAÍ"£ CMM!µCIYYVY) 021241200£ THIS .cERTIFICATE IS JSSUED AS A MATTER OF INFORMATION ONLY AND .cONFERS NO RIGHTS UPON THE .cERTIFICATE HOLDER. THIS .cERTIFICATE DOES NOT AMEND, .EXTEND DR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, HQuston IHSURED FurwliYs OffshQrs :Exp~QXlitiQn, he. ~3430 Northwest FrsewliY Suite BDO Houston ~X 7'704 D- ~x 7'70B2- INSURERS AFFORDING COVERAGE IN$URERA:Lex:i..n ton Insurance CO INSURER B: INSURER C: INSURER D: INSURER£: NAIC# COVERAGES T-HE P01.lCIES OF INSURANCE .lISTED£E!.OW +!AVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY TŒ01..lIREMENT. TERM OR CONDITION OF ANY r:ONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN, T-HE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT ìO ALl THE TERMS. EXClUSIONS AND r:ONDITIONS OF SUCH POLICIES. ""'GGREG,:;TE .lIMITS SHOWN MAY HAVE£EEN REDUCED BY PAJD C.lAJMS. INSR fADo'!. POUCY £FF£CTIV£ POUCY.EXPIRATlON L TR UNSRD ìYP£ OF INSURANCE POUCY HUMBER DATE (MMlODIYYI DATE (MMlODIYY) lJMITS AI Iõ£N£RAI. ,UABlUTY / / / / £ACH OCCURRENCE S .J.,OOO,OOO I-- ~~H9~encel X COMMERCIAl t;£N£RAl !.IABJ1.rrY S .J.,OOO.OOO ! -1.J:I..AIMS MADE I2Ð OCCUR ì:2BÐÐOÐ OB/02/2005 OB/02/200£ MEO.EXP IAnv one DÒ!lßon I S 'PERSONAL A ADV INJURY S .J.,OOD,OOD I / / / / GENERAl AGGREGATE S 2,DDD,OOO ffi'LAGIõ~E;:~n'P£R: 'PROOUCTS . COMPIOP AGG S :2,DDO,ODD X 'POL iC Y .JECT .lDC / / / / Pollution (S,"" .J.,DDD,DDO i I....UTOMOBIJ.£ .lJABJ1.1TY 1 / / / .cOMBINED SINGl.E!.IMIT I n....NY....UTO (Ea~ent) S I ! . ¡ -AU. OWNED AUTOS / / / / BODJ1. 'I' INJURY I j , W SC+t£DUl£D-AUTOS (PM ~son) ¡ 1 / / / I i i TiIR£D AUTOS BODJ1. 'I' INJURY n NON·OWNEDAUTOS (PM Jlccident) S I i n / / / / 'PROPERTY DAMAGE H (per Jlccident) S ¡ I S I ! liARAIõ£ .l.lAB1I.1TY AUTO ONl Y -.EA ACCIDENT ! i ¡....NY-AUTO 1 1 1 1 DTHERTHAN .EA ACC S I AUTO ONLY: I I AGG S I Õ£SSiUMII1ŒU.A .l.lAB1I.1TY / / / / S .EACH OCCURRENCE I ¡OCCUR 0 .J:I..AIMS MADE AGGREGATE S , I S , R .D£DuCTJBLE / / / / S I I ! 'RETENTION S S : WORKERS X:OMP.ENSATION ....NO / 1 1 / I T~~~If:INs D]H. I :MP!.DY£RS' .l.lABlI.rrY ER '....NY'PROPRŒTOR/PARTNERI£X.EC1JTIVE £.1.. .EACH ACCIOENT S OFFIC.ERlMEMBfR£XCUJDED? / 1 / / .E.1.. DISEASE -.EA .EMPLOYEE S /I yes. De5Cl1Oe W1Qer SPECIAL 'PROVISIONS~_ £.l.DISEASE -'POLICY LIMIT S i DT+i£R / / 1 1 ! / / / / ; / / / / i D£St:RIPTIOH D. DP.ERATIONS/!.DCATIONSN£H!t'I ""l'''CUJSIONS AIIO.ED BY .ENDORSEM£NTISP£CIAl PROVISIONS .Bell ~U~U t;ra:z.ing P~er.h.ip .i. :named ~ ~tion&l .inaurad. Pj,.,.l~e Riqh~-D~-Way ~Dr 'the Fadarù ~-B WaJ..l CEXHIlHT "C") r:ERTIFICATE ti01.DER ( ) CANCELlATION Beil But1:S G=.iDg PliX1:nership C/O :EdwlirD .M. BrQwn ~D~5 Ælist 39DD 5Qutb 5B..l t .Lake Ci t UT B4J.24- -ACORD:2S (2001/0B) ~ .~- INS02S ICIIl11I.D5 .$HOIJU) .\NY DF T+i£ -ABOVE DESCRIBED POUC1£S JE .cANC.ELl£D BEFDRE T+i£ .EXPIRATION DATE TtŒR£OF, T+i£ JSSUING INSURER WILl £ND£AVOR TD MAIL ~ DAYS WRITTEN NCTlC£ TO THE ŒRTlFICATE tiOlDER NAMED TD THE.l£FT. BUT FAIlURE TO DO SO SHAll IMPOSE NO DBUGATION INSURER ITS AGENTS OR -AUTHORIZ.ED RfP TAT -P.¡¡ge 1 -", 2 £lECTRONiCiASERFORMS. INC.-