HomeMy WebLinkAbout907026 RECEIVED 3/14/2005 at 10:28 AM RECEIVING # 907026
BOOK: 580 PAGE: 643 JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, VVY
PIPELINE AGREEMENT
THIS AGREEMENT, is made and entered into effective as of the
1st day of December, 2004, by and between BELL BUTTE GRAZING
PARTNERSHIP, A LIMITED PARTNERSHIP, whose address is % Edward M.
Bown, Attorney at Law, 1015 East 3900 SOuth, Salt Lake City, Utah
84124-0110 (hereinafter referred to as "Bell Butte") and Chevron
U.S.A. Inc., a Corporation authorized to do business in the State
of Wyoming, whose mailing address is P. O. Box 36366, Houston,
Texas 77236 (hereinafter referred to as "Chevron").
W I TN E S SETH:
THAT WHEREAS, Bell Butte is the owner of the SE1/4NW1/4 and
E1/2SW1/4 of Section 19, Township 19 North, Range 119 West, 6th
P.M., situated in Lincoln County, Wyoming; and
WHEREAS, Chevron has requested Bell Butte to grant to Chevron
a non-exclusive right to utilize certain portions of said
SE1/4NW1/4 and E1/2SW1/4 of said Section 19, for a pipeline to be
used in connection with its oil and gas drilling and producing
operations involving the Chevron Federal No. 1-1TM Well located in
the SW1/4NW1/4 of Section 17, of said Township 19 North, Range 119
West, 6th P.M.; and
WHEREAS, Bell Butte and Chevron desire to enter into this
Agreement in accordance with the terms and conditions hereinafter
set forth.
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 a non-exclusive right
to construct, install and maintain one pipeline within a tract of
land 50 feet wide, 25 feet on each side of centerline, and 3,273.67
feet or 198.40 rods in length in said SE1/4NW1/4 and E1/2SW1/4 of
said Section 19, 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.
1-17M Well located in the SW1/4NW1/4 of said Section 17, 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
2
0907026
,.,,
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
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 Chevron to Bell Butte
concurrently herewith represents the consideration for the
execution of this Agreement by the parties and for the use of the
said premises, through the 30th day of November, 2005, 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 cause or 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 herein 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 $3,372.80 and, shall pay to Bell Butte the sum of
3
$Z,686.40, subject to adjustment as hereinafter set forth, on or
before the Zst day of December, 2005, and shall pay a like amount
to Bell Butte on or before the 1st day of December, of each year
thereafter so long as this Agreement remains in effect.
The following formula shall be utilized by the parties to
determine the annual payment under this Agreement as to Chevron's
use of the Premises for each additional one (1) license year
periods after the first license year:
Ra = $1~5_8_6_~ x Ia
Ib
where
Ra is the amount of the rental payment due December
1, 2005 and on or before each December 1, thereafter;
Ia is the Consumer PriCe Index - all Urban
Consumers, U.S. City Average, all Items (1982-84
Base=100) published by the U.S. Department of Labor, for
the month of September immediately preceding the 1st day
of December of the applicable renewal year of adjustment;
and
Lb is the consumer price index (as defined above)
for the month of December, 2004.
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, that in no event shall the
annual payment as computed above for Chevron's use of the Premises
for any given future renewal license year period, ever be less than
the amount of the annual rental payment as computed above for
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 shall 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.
o
Bell Butte's title to the premises and Chevron's rights
hereunder are expressly subject to all superior rights, including,
but without limitation, the following, to-wit:
(a)
Ail reservations, limitations, and conditiOns of the
~underlying Patents covering said premises and the rights
of any party, or parties pursuant thereto;
(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)
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 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, 9as, mineral
or other lease(s), access road agreements, or surface
owner(s) or other agreement(s), and all other leases and
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 underlyin~
deed constituting the record chain of title from Patentee
to Bell Butte.
9. At Chevron's sole cost and expense, and during the
construction, repair and maintenance of said pipeline, and during
the life of this Agreement:
6
::.. ',: ¢ 6 ,'J 9
(a)
(b)
(c)
(d)
(e)
(f)
Chevron shall maintain and keep said premises clear of
refuse and litter caused by Chevron.
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.
Chevron shall construct and maintain adequate water
breaks on all disturbed slopes, if any.
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 free and 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
above; and (b) any and all damages, claims, demands,
costs and expenses arising out of damage to livestock and
property or injury to or death of Chevron's employees or
any other person(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.
?026
=,.0650
(g)
(h)
(i)
(j)
(k)
(1)
(m)
10.
reason,
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 ex~sting 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.
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.
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.
Chevron shall take reasonable steps to control all
infestation of noxious weeds on the subject premises
caused or aggravated by Chevron's activities hereunder.
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.
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.
Upon the termination of this Agreement from any cause or
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
rules, 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
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. All
such reseeding is to be completed by Chevron in a timely manner
using specificatiOns designated by the Bureau of Land Management on
adjacent Federal Sections and approved by Bell Butte prior to such
reseeding.
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 any time there shall be any default
shall not
on the part of Chevron hereunder, this Agreement
terminate, except as hereinafter provided to-wit:
(a)
(b)
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 pay 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
In the event Chevron shall default in the performance of
any other covenant and agreement hereunder on its part to
9
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, or Bell Butte's right of specific
performance with respect to such accrued obligations as hereinafter
provided under Paragraph 12'hereof.
12. In addition to the provisions of Paragraph 11, above, the
parties also agree that this Agreement is specifically enforceable
and in the event of Chevron'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.
10
13. This Agreement does not in any manner constitute a
conveyance of any title, interest or 9state in and to any part of
the premises herein described in said Exhibit "A", but the rights
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 termination of this Agreement for any cause or
reason, including Chevron's relinquishment of all of its rights
hereunder,
acknowledge
Chevron shall also
and deliver to Bell
forthwith
Butte for
prepare, execute,
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
11
hereunder; provided, however, such termination shall not release
Chevron from the full performance of all covenants and Agreements
on its part to' be kept and performed at the time of such
termination and all of Bell Butte's ri§hts and remedies hereunder
in the event of default by Chevron or other termination of this
Agreement, for any cause or reason, shall all survive the
termination of this Agreement.
18. This Agreement shall be recorded by Chevron in the
official records of Lincoln County, Wyoming, on or before April 1,
2005, and a complete recorded copy of this Agreement shall be
furnished to Bell Butte for its files and records, no later than 45
.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 notice 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.
12
21. This instrument covers the entire agreement between the
parties, and no representation or statements, verbal or written
have been made modifying, addin9 to, or changing the terms of this
Agreement.
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 governed by the laws of the State
of Nyoming and jurisdiction and venue in the District Court of
Lincoln County, State of Nyoming.
IN NITNESS HEREOF, the parties have executed this Agreement as
and year first above written.
Tax ID. No. 87-0424682
BELL BUTTE:
Bell Butte Grazing Partnership,
a Limited Partnership
Its Managing General Partner
13
CHEVRON:
Chevron U.S.A. Inc.
Title ATTORNE?~IN-FAC, T
ACKNOWLEDGMENTS
STATE OF UTAH
COUNTY OF RICH
)
) ss
)
/TT~e foregoing~nstrument was acknowledged before me this
, day of ~_~~. , 2005, by CHARLEs REX, Managin9
General Partner of Bell Butte Grazin9 Partnership, a Limited
Partnership, on behalf of said Limited Partnership.
WITNESS my hand and officials
~ ~ u~.ic, s:r~:rE o~; ~ ~ ~M~ WAY
My Commission expires:
14
,: C..65TM
STATE OF TEXAS )
) SS
COUNTY OF HARRIS )
Before me, the undersigned authority,~a Notary Public in and
for said County, personally appeared ~.~Q~ ~7~f 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
name 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.
IN WITNESS WHEREOF, I have hereunto set my official signature
and affixed my notarial seal of office on this the ~/~ day of
, .oos.
WITNESS my hand and official seal.
~ ~v et, ',,
..%, .... :~,. ELAINE J. GRABER
"""'." '"~% Notary Public, Smt,~ of Texans
Septem~r ~0, 2008
Notary Public
Residing at: /~737~J
My Commission Expires:
C: \bel lbu~t \chev\pipelineJul03. a~r
15
1/4
TOTAL LENGTH = 3273.67 FEET OR 198.40 RODS
-.~.- -- _
LOT ~
LOT 7
Found
1909 GLO
Brass Cap
(typical)
1/4{
I N 00'28'29" E, 787.87'
I
1206.58'
S 89°15'46" E, 2521.66' 1/4
P.O.E.
-- N 07°16'00" W, 1140.88'
I
SECTION 19
T19N, FI119W
I
CE PIPELINE
I
-- N 15°27"13" E, 1025.81'
N 08012'03.. W, 129.1T
f%OWNER:
ELL BUTTE GRAZING
1/4,E1/2 SWl/4, SEll4 NWll4,
1/2 NEll4 & NWl/4 NEll4)
Certificate of Surveyor
STATE of WYOMING )
COUNTY of UINTA ) ss
I, STANTON G. TAGGART, OF WASATCH
SURVEYING ASSOCIATES, EEC. HEREBY STATE THAT
I AM BY OCCUPATION A PROFESSIONAL LAND
SURVEYOR EMPLOYED BY CHEVRON TEXACO TO
MAKE THE SURVEY OF THE TRACT DESCRIBED AND
SHOWN ON THIS PLAT; THAT THE SURVEY OF SAID
WORKS WAS MADE UNDER MY SUPERVISION AND
UNDER MY AUTHORITY AND THAT SUCH SURVEY IS
ACCURATELY REPRESENTED HEREON.
ANY CHANGE, ADDITION or DELETION OF ANY PART OF THIS DESCRIPTION WILL
ACT TO VOID ANY WARRANTY OR RESPONSIBILITY, EXPRESS OR IMPLIED, THAT I
Y HAVE TOWARDS THE SUBJECT PROPERTY.
Legal Description
A TRACT OF LAND LOCATED IN THE SE1/4 NWl/4 AND THE E1/2 SVVlM
SECTION 19, T19N, R119VV, 6TH P.M., LINCOLN COUNTY, WYOMING, SAID
TRACT BEING 50.00 FEET WIDE, 25.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 19 AND
RUNNING THENCE S 89 °15'4E' E, 1206.58 FEET ALONG THE SOUTH LINE
THEREOF TO THE SOUTHWEST CORNER OF SAID Elf2 SW1/4;
THENCE N 00°28'2~' E, 787.87 FEET ALONG THE WEST ENE THEREOF TO
THE POINT OF BEGINNING ·
THENCE N 22°02'14.. E, 977.81 FEET; THENCE N 08°1Z0~' W, 129.17 FEET;
THENCE N 15°2T13" E, 1025.81 FEET; THENCE N 07°1~0(7'W, 1140.88 FEET
TO THE POINT OF ENDING OF THE TRACT.
SAID TRACT BEING 3273.67 FEET OR 198.40 RODS, MORE OR LESS, IN
LENGTH.
Map Showing
CHEVRON USA, INC.
Proposed Pipeline
to the Federal 'i-'I 7M Well
across the SE'Il4 NW'I/4
and the E'I/2 SW1/4 of Section
T'IgN, Rl lgw, 6th P.M.
Lincoln County, Wyoming
EXHIBIT "A" ~~~
~/~ ~ ~II~SURVEYING
J 906 Main Street
Evanston, Wyoming 82930
Phone No. (307) 789-4545
Project No. 0'3-06-05 Date: 1~
19