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REOEIVED
LINOOL[,! COUf'~TY OLERK Plant:GRANGER
:, ~., o Well: ReYnard Unit 11-1
PIPELINE
KNOW ALL BY THESE PRESENTS:
That Max Blaine Thoman
P.O. Box 397
LaBarge, WY 83123
hereinafter referred to as Grantor, (whether one or more), for and in consideration of the sum of One
Dollar ($1.00) and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, does hereby grant, convey and warrant unto Monntain Gas Resources, Lnc.., having its
principal office at 1099 18th Street, Suite 1200, Denver, Colorado 80202-1955, and to its successors and
assigms, hereinafter referred to as Grantee, the exclusive right, privilege and easement ("Easement") for
the purpose of locating and surveying pipeline routes, and for constructing, entrenching, oPerating,
maintaining, repairing, altering, replacing and removing one or more pipelines and appurtenant facilities,
including without limitation above and below ground valves, meters, pigging equipment, wireleads,
cormnunications lines, power lines, cathodic protection equipment and markers, and other facilities
necessary or desirable in connection with the purposes herein, all for the handling, gathering and
movement of natural gas, including coalbed methane, and the constituents contained therein, in, over,
across, under and upon the following lands in Lincoln. COUNTY, Wyoming, to-wit:
A portion of Section t, Township 20 North, Range 112 West, Lincoln County, Wyoming.
The Easement granted hereby is more specifically identified as a strip of land measuring fifty (50) feet
in width and covering a distance of approximately 189 rods in length, and is located over, across, under
and upon'the lands of Grantor, and shall ordinarily extend twenty-five (25) feet on each side of the
Easement centerline. The location and dimensions of the Easement shall be established.by a survey
which shall be attached hereto as Exhibit "A" and made a part hereof either upon execution hereof or
upon construction of the initial pipeline.
Easement in order to construct improvements on Grantor's lands, (e.g. water line, roadway, fencing,
etc.), Grantor will notify Grantee of same prior to such construction. Grantee will provide personnel to
locate pipelines constructed hereunder.
It is further agreed as follows:
1. All pipelines constructed by Grantee shall, at the time of construction thereof, be buried
to a depth not less than 3 feet as measured from the surface above the pipeline to the top of the pipeline,
except if rock or other impenetrable substances make burial to the foregoing depth impractical, Grantee
shall have the right to bury the pipelines to such lesser depth as is practical, but in no event less than a
depth of one foot as measured from the surface above the pipeline to the top of the pipeline; and
provided that at the option of Grantee, such line or lines may be placed above the channel of any stream,'
ravine, ditch or other water courses.
2. 'During construction, repair, replacement or removal, Grantee shall have the hght to use
an additional strip of land not more than twelve an one half.(12.5) feet in width on each side of the
Easement strip referred to above for wOrking space only and additional work space of one hundred feet
by one hundred and fifty feet (100 X 150) along the Easement area at the crossing of roads, railroads,
streams, terraces and uneven terrain.
3. It is understood and agreed by the parties that the consideration recited above covers not
only the Easement granted herein, but also fully compensates Grantor for all reasonable and ordinary
damages caused by, associated with and otherwise incurred in connection with the construction of the
pipelines. Following construction of the pipeline, Grantee will pay for any damages to Grantor's
growing crops or fences caused by the maintenance or operation of Grantee's facilities; provided,
however, that the Grantee shall have the right from time to time to cut or clear trees, brush and other
obstructions on the right-of-way that might interfere with the operation or maintenance of Grantee's
facilities.
--4. Grantee will restore the surface to its original contour as nearly as practicable, the
disturbance to which shall be occasioned by the construction, maintenance or operation of said pipelines
under and through the above described land. Further, Grantee agrees to reseed all areas disturbed by
Grantee's operations along the pipeline corridor in a manner consistent with the vegetation existing prior
to Grantee's operations on the Easement. Grantee shall use commercially reasonable efforts to control
noxious and undesirable weeds on the Easement until the reseeded ground cover is reasonably
established. Grantor's lands and leases shall at all tirn~ h~ leant rl .... C ~1~ ~,*~'~ *~
7. Grantor represents and warrants that he is the owner in fee simple of the lands covered by
the Easement, subject only to outstanding mortgages and rights of way, if any, now of record in said
county, and in the event of default by Grantor, Grantee shall have the right to discharge or redeem for
Grantor, in whole or in part, any mortgage, tax or other lien on the lands covered by the Easement and
thereupon be subrogated to such lien and rights incident thereto.
8. The rights of the parties may be assigned in whole or in part.
9. In the event Grantee ceases to use the Easement and fails to keep the pipelines
constructed hereunder available for service, all for the purposes set forth herein, for any continuous
period of five years of more, this Easement shall, upon written notice from Grantor to Grantee, terminate
and all right, privileges and benefits of the Grantee hereunder will revert .to the Grantor, unless Grantee
has re-commenced use of the. Easement within 90 days follo~ving receipt of Grantor's notice. In the
event that the Easement terminates under this provision, then the Grantor, at its option, may be deemed
the owner of any improvements, including the pipelines installed in the Easement by Grantee. If this
option is exercised by Grantor, Grantee agrees to execute any necessary documents to effectuate and
transfer said ownership to Grantor. :If the option is not exercised by Grantor, then Grantee will
commence, in good faith, to remove all aboveground improvements constructed by it within 90 days
after the receipt of written notice from Grantor to Grantee. If the Grantee fails to so remove such
aboveground improvements, Grantor may remove the aboveground improvements for the account of
Grantee, and Grantee shall reimburse Grantor for the reasonable expenses incurred in the removal of the
aboveground improvements within 30 days from receipt of the proper amount thereof.
10. This instrument contains the entire agreement of the parties. There are no other or
different agreements or understandings between Grantor and Grantee or its agents, and Grantor, in
executing and delivering this instrument, has not relied upon any promises, inducements, or
representations of Grantee or its agents or employees, except as such as are set forth herein.
11. This instrument and the rights, easements and agreements herein contained shall be
covenants running with the land and shall inure to the benefit of and be l~inding and obligatory upon the
heirs, executors, administrators, successors and assigns of the parties hereto.
Dated this /_'~3 day of //)Q~ tO_ c.t ,2003.
Max Blaine Thoman
STATE OF
COUNTY
SS.
The foregoing instrument was acknowledged before me this
by Max Blaine Thoman.
day
Witness my hand and seal.
OLN x~ .WYOMING ~
My Connnission Expires:
otary P ubXI/~z~
,2003