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PIPELINE AGREEMENT
155 4-
RECEIVED
LINCOLN COUNTy CLERK
02 rY'"r
i~. ~. ,,] '- ~ ~'{?) .- ..~
THIS AGREEMENT, is made and entered into effective as of the
1st day of August, 2002, by and between BELL BUTTE GRAZING
PARTNERSHIP, A LIMITED PARTNERSHIP, whose address is..% Edward M.
Bown, Attorney at Law, P. O. Box 58395, Salt Lake City, Utah 84158-
0395 (hereinafter referred to as "Bell Butte") and Chevron U.S.A.
Inc., whose mailing address is P. O. Box 36366, Houston, Texas
77236 (hereinafter referred to as "Chevron").
W I TNE S SETH:
THAT WHEREAS, Bell Butte is the owner of the El/2 of the NE1/4
of Section 31, ToWn, hip. 19 North, Range 119 West, 6th P.M.,
situated in Lincoln County, Wyoming; and
WHEREAS, Chevron has requested Bell Butte to ~rant to Chevron
the right to utilize certain portions of said E1/2NE1/4 of said
Section 31, for a pipeline to be used in connection with its oil
and §as drillin~ and producin9 operations involvin~ the Chevron
Federal No. 4£32M Well located in the NE~ of section 32, of said
Township 19 North, Range 119 West, 6th P.M..
WHEREAS, Bell Butte and Chevron desire to enter into this
Agreement in accordance with the terms and conditions hereinafter
set forth.
· '?:!:?:!;? ?'
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NOW, THEREFORE, in consideration of the premises, and the sum
of Ten and No/100 Dollars ($10.00), and other valuable
consideration, in hand paid to Bell Butte by Chevron, the receipt
whereof is hereby acknowledged by Bell Butte, and in consideration
of Bell Butte entering into this Agreement with Chevron, and
Chevron's agreement with Bell Butte to keep and perform all of the
covenants and agreements on Chevron's part to be kept and performed
hereunder, as hereinafter set forth, the parties hereto covenant
and agree as follows, to-wit:
1. Bell Butte hereby grants to Chevron the right to
construct, install and maintain one pipeline within a tract of land
50 feet wide, 25 feet on each side of centerline, and 1,202.49 feet
or 72.88 rods in length in said E1/2NE1/4 of said Section 31,
Township 19 North, [Range 119 West, 6tn P.M., Lincoln County,
Wyoming, in connection with its oil and gas drilling and producing
operations involving the Chevron Federal No. 4-32M Well located in
the NE~ of said Section 32, Township 19 North, Range 119 West, 6th
P.M., Lincoln County, Wyoming, which tract of land is sometimes
hereinafter referred to as the "Premises" and is more particularly
shown, identified and described on Exhibit "A", annexed hereto, and
by this reference specifically made a part hereof.
2. During the life of this Agreement, Bell Butte, and other
parties similarly authorized by Bell Butte, shall have the right to
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use and enjoy the subject premises as the rights herein granted to
Chevron with respect to said premises are not exclusive.
3. The consideration paid by
concurrently~ herewith represents the
Chevron to Bell Butte
consideration for the
execution of this Agreement by the parties and for the use of the
said premises, through the 31st day of July, 2003, such date
constituting for the purposes hereof the last day of the first
license year of this Agreement.
4. In the event Chevron's use of the said premises should
cease or terminate for any reason, Chevron may surrender this
Agreement by mailing or tendering to Bell Butte a release and be
relieved of all obligations under this Agreement excepting those
obligations to be kept and performed at the time of such
termination, as here~n provided, including, without limitation, the
provisions of Paragraphs 10, 11, 12 and 17 hereof.
5. Upon execution of this Agreement, Chevron shall pay to
Bell Butte, at its address above set forth, or at such other
address as Bell Butte may designate by written notice to Chevron,
the sum of $1,238.96 and, shall pay to Bell Butte the sum of
$619.48, subject to adjustment as hereinafter set forth, on or
before the 1st day of August, 2003, and shall pay a like amount to
Bell Butte on or before the 1st day of August, of each year
thereafter so long as this Agreement remains in effect.
?he following ~ormula shsll be ~tilized by the part±es to
determine the a=nual payment owing ~nder this Agreement to be paid
to Bell Butte by Chevron for its use of the Premises for each
additional one (1) license year period after the first license year
ending August 1, 2003:
Ra = $619.48 x Ia
Ib
where
Ra is the amount of the payment for the use of the
premises in the applicable license year;
Ia is the Consumer Price Index - Ail Urban
Consumers, U.S. City Average, Ail Items (1982-84
Base=100) published by the U.S. Department of Labor, for
the month,[Of May immediately preceding the 1st day of
August of the applicable renewal year of adjustment; and
Ib is the Consumer Price Index (as defined above)
for the month of August, 2002.
In the event the Consumer Price Index is discontinued or
revised, such other government index with which it is replaced
shall be used in order to obtain substantially the same result as
would be obtained if the consumer price index had not been
discontinued or revised.
Provided further, however, in no event shall the annual
payment computed above as to Chevron's use of the premises for any
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given future renewal license year period ever be less than the
amount of the annual payment computed as to Chevron's use of the
premises and paid for the immediate preceding license year period.
6. Chevron shall not have the right to sell, assign,
sublease or otherwise transfer this Agreement or any part or
portion thereof, or any of its rights and interests herein and
hereunder, or any part or portion thereof, without the written
consent of Bell Butte being first had and obtained.
7. Bell Butte shall pay all County taxes assessed against
said premises, based upon the present valuation thereof.
Chevron shall pay all County tax assessments based upon
any and all improvements whatsoever placed upon said premises by
Chevron.
Chevron sh~ll also pay all'County taxes, if any, assessed
against said premises~.because of additional value placed thereon
for tax purposes by reason of improvements placed upon said
premises by Chevron, and Chevron shall, within thirty (30) days
after written notice from Bell Butte, reimburse it for Chevron's
share thereof.
8. Bell Butte's title to the premises and Chevron's rights
hereunder are expressly subject to all superior rights, including,
b~t without limitation, the following, to-wit:
(a) All reservations, limitations, and conditions of the
underlying Patents covering said premises and the rights
of any party, or parties pursuant thereto;
019
(b)
Ail grants, conditions, limitations, and reservations, if
any, of record, or arising by operation of law, and the
rights of any party or parties pursuant thereto;
(c)
Ail 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 said premises or any portion, or portions,
thereof;
(d)
The rights of the owner(s) of the mineral estate(s), and
the terms and conditions of and the rights of all party,
or parties, under all existing grazing, oil, gas, mineral
or other lease(s), access road agreements~'~ or surface
owner(s) or other agreement(s), and all other agreements
of every kind and nature, covering any portion, or
portions, of the lands included in the subject
premises, and the right of Bell Butte to renew or extend
said leases and agreements, or enter into new leases
and/or agreements at the sole discretion of Bell Butte;
and
(e)
The rights of any party, or parties, under any underlying
deed constituting the record chain of title from Patentee
to Bell Butte.
9. At Chevro~s sole cost and'expense, and during the
construction, repair and maintenance of said pipeline, and during
the life of this Agreement:
(a)
Chevron shall maintain and keep said premises clear of
refuse and litter caused by Chevron.
(b)
Range improvements, such as fencing or reservoirs, etc.,
if any, within the premises, will not be disturbed; or,
where disturbance is necessary, Chevron~shall leave such
improvements in the original or better condition, as
determined by Bell Butte and Chevron.
(c)
Chevron shall construct and maintain
breaks on all disturbed slopes, if'any.
adequate water
(d)
(e)
(f)
(9)
(h)
020
Chevron shall effect a minimum of vegetative or soil
disturbance, consistent with practical maintenance
operations, and will smooth and maintain all disturbed
areas to conform as nearly as practical with the adjacent
terrain, and provide and maintain adequate water drainage
to minimize erosion.
Chevron shall comply with all Federal, State and local
Laws, ordinances, and enactments, and with all lawful
rules, regulations and orders of all regulating agency,
or agencies, applicable to Chevron's use and maintenance
of the premises and operations under this Agreement,
including, but without limitation, environmental, water,
noise and air pollution control, erosion cOntrol, toxic
waste, hazardous substances and material issues and
matters.
Chevron shall hold Bell Butte and its partners, officers,
agents and employees harmless from and indemnify and
defend them, and each of them, against (a) any and all
damages, claims, costs and expenses resulting from
Chevron's failure to comply with said Federal, State and
local Laws, ordinances and enactments and rules,
regulations, and orders set forth in preceding Paragraph
(e) above; and (b) any and all damages, claims, demands,
costs and expenses arising out of damage to livestock and
property 0k injury to or death of Chevron's employees or
any other p~rson(s) whomsoever, where such injury, death
or damage arises.out of, results from, or is in any way
connected with Chevron's rights and operations under this
Agreement.
Chevron shall indemnify and hold Bell Butte free and
harmless from and against any and all claims and liens
upon the premises for labor or materials furnished to
Chevron, its agents, or Contractors and shall take all
necessary actions to forthwith remove such liens from all
public records or otherwise, as requested by Bell Butte.
Ail gates shall be left closed, and in those instances
where said pipeline shall cross existing fence lines,
gates and cattle ~uards shall be installed and maintained
by Chevron in accordance with specifications agreed to by
the parties, or, at Chevron's option, the fence may be
restored to its original condition.
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021
Ail operations hereunder shall be conducted by Chevron in
a fair and reasonable manner, and all necessary
precautions shall be taken to avoid damage to gates,
bridges, culverts, cattle guards, fences, dikes and other
stock watering facilities. All damage to the above-named
facilities shall be immediately reported to Bell Butte
and shall be forth-with repaired by Chevron, as nearly as
possible to the condition existing prior to such
operations. Any public hazard, such as damaged bridges
or culverts, caused by Chevron's use of the premises,
shall be marked or barricaded, and proper steps taken for
the repair thereof by Chevron.
(j)
Chevron shall not have the right to fence the whole or
any part of the premises included in this Agreement,
without the written consent of Bell Butte being first had
and obtained.
(k)
Chevron shall take reasonable steps to control all
infestation of noxious weeds on the subject premises
caused or aggravated by CheVron's activities hereunder.
(1)
Chevron will take reasonable steps to not permit any dogs
or other animals to be kept in the area which could cause
any death or damage to livestock.
(m)
Chevron will take reasonable steps to inform its
employees~.~.~.agents, and contractors of the presence of
livestock near and around the premises and of the need
for caution when livestock are present.
10. Upon the termination of this Agreement from any cause or
reason, Chevron shall surrender the premises to Bell Butte and
shall leave said premises in a condition which complies with all
laws, including applicable environmental laws, and all other lawful
regulations and orders; and the entire said premises will be
restored and reseeded by Chevron, as soon as weather conditions
permit, the reseeding to be done by drilling with a drill equipped
with a depth regulator, to assure even depth of planting. Seeding
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022
will be done during the months of September and/or October, or at
such other time as agreed between the parties. The seeding shall
be repeated until a reasonably satisfactory stand is obtained. Ail
such restoration and reseeding is to be completed by Chevron in a
timely manner using specifications required by the Bureau of Land
Management on adjacent Federal sections or as designated by Bell
Butte.
11. This Agreement is made upon the condition that Chevron
shall perform all the covenants and agreements herein set forth to
be performed by it, and if at anytime there shall be any default
on the part of Chevron hereunder, this Agreement shall not
terminate, except as hereinafter provided to-wit:
(a)
In the event Chevron shall default in the payment of any
annual rental payment promptly on the date when the same
'shall become due and owing hereunder, and Chevron shall
fail to pa~ the same to Bell Butte within twenty (20)
days after Written notice of such default being given by
Bell Butte to Chevron at its address above set forth, or
(b)
In the event Chevron shall default in the performance of
any other covenant and agreement hereunder on its part to
be kept and performed, and if 'Chevron shall fail to cure
such. default or to commence steps reasonably designed to
cure such default within thirty (30) days after written
notice of such default being given by Bell Butte to
Chevron at its address above set forth, or after weather
and soil conditions first permit repair, if the default
be of such a nature,
then and in such event, or events, this Agreement at the option of
Bell Butte, shall forthwith terminate and end and cease to exist,
and the subject premises shall revert to Bell Butte; provided,
however, such termination shall not release Chevron from any
covenant, agreement or obligation hereunder on its part to be kept
and performed at the time of 'such termination including, without
limitation, the provisions of this Paragraph 11, and Paragraphs 10,
12 and 17 of this Agreement, and/or Bell Butte's right of specific
performance with respect to such accrued obligations as hereinafter
provided under Paragraph 12 hereof, and all of such covenants,
agreements and obligations and all remedies of Bell Butte under
this Agreement, shall survive the termination of this Agreement
until performed by Chevron.
12. In addition to the provisions of Paragraph 11, above, the
parties also agree that this Agreement is specifically enforceable
and in the event ofl~hevron's default with respect to any of the
covenants and agreements hereunder on its part to be kept and
performed, Chevron shall pay to Bell Butte all costs and expenses
of specifically enforcing this Agreement, or in pursuing any remedy
proVided hereunder or by the statutes of the State of Wyoming,
whether such remedy is pursued by filing suit or otherwise,
including a reasonable attorney's fee.
'13. This Agreement does not in any manner constitute a
~onveyance of any title, interest or estate in and to any part of
the premises herein described in said Exhibit "A", but the rights
10
herein granted to Chevron are in the nature of a license, only, and
shall not'ripen into an easement of any kind or nature.
14. Chevron shall have ninety (90) days after the termination
of this Agreement to remove all of its personal property, if any,
from said premises.
15. Chevron shall not have the right to use, and shall not
take and use, any water from said premises above described during
the entire life of this Agreement without the written consent of
Bell Butte being first had and obtained.
16. Notwithstanding anything contained herein to the
contrary, this Agreement shall fOrthwith terminate and end upon
said premises no longer being required for the purposes aforesaid
by Chevron.
17. Notwithstanding anything contained herein to the
contrary, upon the t~rmination of this Agreement for any cause or
reason, including Chevron's relinquishment of all of its rights
hereunder,
acknowledge
Chevron shall also forthwith prepare, execute,
and deliver to Bell Butte for its approval, such
document for recording with the proper County Recorder as the case
may be, as will fully release and'terminate all of Chevron's rights
hereunder; provided, however, such termination shall not release
ghevron from the full performance of all covenants and Agreements
oh its part to be kept and performed at the time of such
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termination and all of Bell Butte's rights and remedies hereunder
in the event of default by Chevron or other termination of this
Agreement, for any cause or reason, shall survive the termination
of this Agreement.
18. This Agreement shall be forthwith recorded by Chevron in
the official records of Lincoln County, Wyoming, and a complete
recorded copy of this Agreement shall be furnished to Bell Butte
for its files and records, no later than 30 days after date of
recording.
19. Subject to the provisions of Paragraph 6 above, the
terms, ~conditions, and provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and
their successors and assigns.
20. Any notlce~contemplated to be given to Chevron or Bell
Butte shall be in writing and shall be mailed in the United States
Mail, Registered or Certified Mail, Return Receipt Requested, at
the addresses of Chevron and Bell Butte above set forth in the
first paragraph hereof, and shall be effective and complete upon
the date of posting and mailing.
21. This instrument covers the entire agreement between the
parties, and no representation or statements, verbal or written
b~ve been made modifying, adding to, or changing the terms of this
Agreement.
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22. Time is of the essence of this Agreement, and of each of
the terms and conditions hereof.
23. No waiver by either party of any breach or default by the
other party on any occasion, and no election by either party to
exercise or forego any right or remedy hereunder or relating hereto
on any occasion, shall be deemed to be a waiver of any other breach
or default or to be an election to pursue or forego any right 'or
remedy on any other occasion.
24. This Agreement shall be
jurisdiction of the State of Wyoming.
governed by the laws and
IN WITNESS HEREOF, the parties have executed this Agreement as
of this g 7~
--- day of ~~'~, 2002, but effective as of the day
and year first above written.
Tax ID. No. 87-042468~
BELL BUTTE:
Bell Butte Grazing Partnership,
a Limited Partnership
Its Managing General Partner
CHEVRON:
Chevron U.S.A. Inc.
Title
13
027
STATE OF UTAH )
) SS
COUNTY OF SALT LAKE~ )
T.~ foregoing instrument was acknowledged before me this
, day of ~ , 2002, by SIMEON WESTON,
Managing General Partner of Bell Butte Grazing Partnership, a
Limited Partnership, on behalf of said Limited Partnership.
WITNESS my hand and official
18'~ E. Clmremont W,,y
PAy __C~ml~lon Eq~ir~
Residing at Salt Lake City, Utah
My Commission expires:
STATE OF TEXAS )
ss
COUNTY OF HARRIS )
Before me, the undersigned author~t~ a ~otar¥_Public in and
for said County, personally appeared L~P. g~/~//~ to
me personally known,"who being by me duly sworn did say that he,
with the capacity designated by his signature on the document to
which this certificate is attached, is an officer or agent, of
Chevron U.S.A. Inc., a corporation organized and existing under and
by virtue of the laws of the State of Pennsylvania, and that he as
such officer or agent and in such capacity being authorized by its
Bylaws and /or Board of Directors so to do, signed, sealed,
executed and acknowledged before me the foregoing instrument on
behalf of said Corporation as his voluntary act and deed and the
voluntary act and deed of said Corporation for the uses, purposes
and consideration therein expressed and contained by signing the
~me of the Corporation by him as such officer or agent and that
the seal, if any, affixed to said instrument is the Corporate seal
of said Corporation, and he further acknowledges to me that said
Corporation executed the same.
14
028
IN WITNESS WHEREOF, I have hereunto set my official,signature
and affixed my notarial seal of office on this the _~;9 day of
~_x/~r , ~.oo~..
WITNESS my hand and
official seal.~ /w~ ,
N°tar_yjublic// /
ReSiding at: 7~Zg&~/W~
15
0~661S4
029
SECTION 31
'I'19 N, R I19 W
· FOUND 190g
(~LO ~RA~
.TCAP
PIPELINE
LE-C~L DESCRIPTION
A TRACT OF: LAND LOCATED IN THE E1/2 NEll40I= SECT/ON 3/, TOWNSHIP 19
NORTH, RANGE 119 WE~T, 6TH P.M, /-/NCOLN COUNTY, WYOMIN(~, BEIN(~ 50.00
FEET WIDE, 25.00 I=EET ON EACH ~IDE OF THE FOLLOW/N~ DESCR/BED
CENTERLINE'.
BEOINNINO AT A POINT L YINC~ ON THE EAST LINE OF SAID
SEC'flON 31, ,.~00'21'34' W, 1427.32 FEET FROM THE NORTHEAST CORNER
THEREOF;
THENCE N ?4'23'59' W, 939.73 FEET;
THENCE ~ 7748'18' W, 262.76 FEET TO THE POINT OF ENDIN~
OF THE TRACT, ~AID F~C)INT L'Y1N(~ ON THE EAST ED(~E OI= THE CHEVF~ON U.S.A.
PEDE~L 2-31M WEI.I. srrE.
~AID TRACT SEIN(~ 1202.4g FEET OR 72.88 RODS, MORE OR I-E,..~-~.~, IN
LENQTH.
(Exhibit
CEFmlRCATE OF: SURVEYOR August 1,
~7'ATE of WYOM/N~ )
COUNTY o/UINTA
I, STANTON G. TA(3C1ART, Of= UINTA ~RINO AND
INC. HERE~Y ~TA T~ THAT' I AM ElY OC CJUI~A TIC~4 A I-~ROI=E ~IONA L LAND
SURVEYOR EMPLOYED BY CI~'VRON ~ TO MAKE THE ~URVEY
THAT ~ ~URVEY O~ ~AID WORK8 WAS MAD~E UNDER MY
~IPERVIffilON AND UNDER MY AUTHORrI~ AND THAT ~ ~URVEY
t~ ACCURATELY REPRESIENTED ON ~ PLAT.
ANY ~ OP ANY PART OF 'I'H~ DESCRFTK)N
WIIJ.. ACT TO VOID ANY WARRANTY OR RE~)NSBILrr~, EXPftESS OR
IMPLIED, 7HAT I MAY HAVE TOWAI~)S THE SUBJECT PROPERTY.
"A" to Pipeline Agreement dated
Map Showing
CHEVFION USA
PROPOSED PIPELINE
To FEDERAL 4-32M WELL
E 1/2 of the NE 1/4,
SECTION 31, T19N, Flll9W
LINCOLN COUNTY, VVYOMINC~
UINTA ENGINEERING & SURVEYING, INC.
808 MAIN STREET
(..307) ~89-3602