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HomeMy WebLinkAbout1.1 Application Part 2athcnng System113 EECAD1Civil-StrucRation3l method talcs-3.dwg, Model, 10/192006 9:19:24 PM, rdburrows 104772 -ETC RI OPEN CHANNEL FLOW CALCULATIONS STEP 1: EXAMINE WATERSHED & DITCH CHARACTERISTICS ♦ AREA OF WATERSHED= 5, 7tj ACRES ^J � \ x43,560 sqft/acre= r2 0, 00O SOFT OUTLET_ EAK FLOW, 50 -yr= g. �/CFS --�� � DELTA ELEVATION= GO FT LENGTH OF DITCH= /05'0 FT AVERAGE SLOPE= 5,7 °Ir; STEP 2: SELECT MANNING ROUGHNESS COEFFICENT 'n' OF CHANNEL CONCRETE, SMOOTH FINISH CONCRETE, ROUGH JOINTS RUBBLE MASONRY, COBBLE SMOOTH EARTH CORRUGATED METAL PIPE FIRM GRAVEL NATURAL CHANNEL, GOOD CONDmON NATURAL CHANNEL W/ STONES & WEEDS NATURAL CHANNEL, VERY POOR CONDITION 0.011 TO 0.012 0.018 TO 0.017 0.017 0.018 0 0.025 0.035 0.060 STEP 3: DETERMINE CHANNEL GEOMETRY AT VARIOUS DEPTHS I ITYP 2 12-0 Fr SOFT DEP H-,. _ AREA - DEPTH -J..50_ AREA. CD DEPTH. /. 00 AREA. I. DEPTH. 0.75. AREA- L f 5 DEPTH. Q, 79 AREA- 0425 DEPTH. 6.22. AREA- 0 .3 71) DEPTH -0 STEP 4: DETERMINE CHANNEL FLOW AT VARIOUS DEPTHS FIND FLOW VELOCITY USING CHEZY-MANNING EQUATION: V• 1.49 (H) •667 — r WHERE: FOR FOR FOR FOR FOR FOR V. VELOCITY (ft/sec) n• Mannings roughness noel rH= Hydraulic radius•Areo/Wat Perimeter (It) s. slope (dimensionless) D.667 0= ft, V= 1.49 �, 0 cvn �(`.F* a ft/sec 4.2.13 D=1.4 ft,y. 1.49 (0 15 )0.667 - :/I .0. . ?3I. 17• $r�/eec v. 1.49 (O. Li' )0.667,x- • 01.5_.13`11 0-1"- 3 .r1 ft/se c 0.0z } V• , 49 (oI1 ')0.667 oq r. t' ft/seo 0 02,3 Sir )D.687.1 . S,? . 1%'01. 9 31.PP. r• Ll ft/tea • #23 l ✓ 1'49 (o IM)°.667/ . 4II.Y . 0.111* 001 5.9 ft/sec 0uzb STEP 5: PICK FLOW DEPTH THAT MATCHES PEAK FLOW REQUIREMENT: PEAK FLOW IN 100—YR STORM Q100 = OCCURS AT APPROXIMATELY = DEPTH OF I. FT AND VELOCITY OF APPROXIMATELY (0 FT/SEC ENGINEER: IZ;ti'Ii' i-kYDATE: /0 •16'!'f PROJECT NAME: 1101, 4L5 W L WATERSHED NAME: PlAY\T DITCH NAME: IA51' DITc (WE- ST T)11 C h 0-) HYDRAULIC RADIUS RH DIMENSIONLESS Fr -AREA / WETTED PERIMETER WET PER.- RFI . WET PER.- RH .0•7J WET PER.- J��•C� RH-J242.011c WET PER.•f�L RH - 0.1 9 (Hi WET PER -• TRH . 0 ,1 711 to WET PER.. 2 RFI ,..±,111 5 0100 - V Q100 = V 0100 = V 0100 = V 0100 = V 0100 = V * AREA = * a _ CFS * AREA =12:55' * 51/ CFS * AREA = 7If • 1.115x — (o.ONt CFS * AREA = 5.t0 r 0.615 = 47 z CFS * AREA = i •('I 0 "16 = 3, 3l5CFS * AREA = .L� * 0315= .°74 -CFS ETC CANYON PIPELINE, LLC 1600 Broadway, Suite 1900 Denver, CO 80202 May 20, 2008 NOTICE OF INTENT TO ACQUIRE AND FINAL OFFER TO PURCHASE VIA HAND DELIVERY Williams Production RMT Company Re: Acquisition of Property Interests by ETC Canyon Pipeline, LLC Dear Williams Production RMT Company: As we have previously discussed, ETC Canyon Pipeline, LLC ("ETC") proposes to construct and maintain pipelines currently estimated to be approximately 10 miles in length to transport gas or other substances transportable by pipeline through portions of Garfield County ("Project"). Design has progressed to a point that ETC has determined that it intends to acquire certain property interests. A review of public records indicates that it is necessary to acquire from you certain property interests for the Project. Exhibit A contains a legal description of the centerline of the property interests that ETC intends to acquire from you. ETC intends to acquire a permanent easement thirty (30) feet in width consisting of fifteen (15) feet on each side of the centerline described in Exhibit A. The terms of the permanent easement are attached hereto as Exhibit B. ETC intends to acquire a temporary construction easement of an additional thirty (30) feet in width as set forth in Exhibit A (see Right -of -Way Limits Box and references made therein). The terms of the temporary construction easement are included in Exhibit B. The permanent easement and the temporary construction easement described above and in Exhibits A and B are hereafter collectively referred to as "Property Interests." ETC has determined that the acquisition of the Property Interests is necessary for the Project. This letter provides to you ETC's official Notice of Intent to Acquire the Property Interests as well as ETC'S Final Offer pursuant to Colorado Revised Statute § 38-1-121. Notice of Intent to Acquire and Final Offer to Purchase May 20, 2008 Page 2 I have been selected by ETC to assist it with the acquisition of the Property Interests from you. ETC desires to enter into negotiations to purchase the Property Interests. If these negotiations are unsuccessful, ETC may acquire the Property Interests through exercise of it power of eminent domain. It is ETC's policy and obligation to pay just compensation for the acquisition of the Property Interests, as defined in the Colorado Constitution and appropriate Colorado statutes. ETC has retained the services of an independent fee appraiser, Hunsperger & Weston, Ltd., to determine just compensation. Conveyance is to be by written agreement executed between you and ETC. Pursuant to Colorado Revised Statute § 38-1-121, as amended, (copy enclosed as Exhibit C), you are entitled to obtain one appraisal from an appraiser of your choosing. ETC will pay the reasonable costs for your appraisal, provided: 1. The appraisal is made using sound, fair and recognized appraisal practices consistent with law. 2. Three copies of your appraisal are submitted to ETC along with the appraiser's invoice, within 90 days from your receipt of this notice. It is not required that you obtain such an appraisal. ETC recommends that in the event you wish to pursue such an appraisal on your own behalf, you begin immediately. In order to eliminate any misunderstanding regarding the reasonableness of your appraiser's qualifications and fees which would be paid by ETC, we suggest that you provide to our office in advance a copy of your appraiser's proposal and suggested fee and I will respond accordingly as to ETC's agreement to pay said fee. ETC has engaged the services of Hunsperger & Weston, Ltd. to appraise the Property Interests. ETC hereby offers you the sum of to acquire the Property Interests. ETC's offer is based on transfer of the Property Interests to ETC unaffected by any liens, encumbrances, possessory interests or tenancies of any kind. Please note that if it is necessary to acquire the Property Interests through litigation ETC reserves the right to present evidence based upon the amount of just compensation determined by its appraiser. The Final Offer set forth in this letter shall remain open for 14 days from the date of this letter. ETC prefers to obtain the Property Interests for construction of the Project through negotiation and with your consent. If we are unable to reach agreement by that time, ETC may pursue acquisition of the necessary Property Interests through its power of eminent domain. Notice of Intent to Acquire and Final Offer to Purchase May 20, 2008 Page 3 Thank you for your cooperation in this matter. Should you have any questions, please do not hesitate to contact me at (720) 225-4011. In any event, I will be calling you soon to discuss this matter with you. Sincerely, ETC CANYON PIPELINE, LLC By: Enclosures: Arthur Smith, Manager of Engineering - Projects Exhibit A - legal description of centerline Exhibit B - permanent easement terms and temporary construction easement terms Exhibit C - CRS § 38-1-121 cc: Don Ostrander, Esq. Elizabeth Rubinstein, Esq. i I WEST I/4 h CORNER SEC IIoN 1980 BRASS CAP GARFIELD CWNTY SURVEYOR 1) Q N 0 EAST 1/4 CORNER SECTION I 1902 CLO. BRASS CAP (0 N s / MIlloms Prod. Wolf Pod GSSOUlNWEST CORNER SECTION I 1980 BRASS CAP CAR/IELO COUNTY SURVEYOR (WC. 225 w. or CORNER) .ZS Williams Prod. r€ EXISTING PIPELINE (rrP) Well Pod See Detail Centerline of Proposed Pipeline N LO N 0e LEGEND 0 PUBLIC LAND SURVEY CORNER O ANGLE POINT P.O.B. POINT OF BEGINNING P.O.E. POINT OF ENDING N8853'47"W, 5383.46' 504) MEAST CORNER SECTION I 1974 BRASS CAP GARFIELD COUNTY SURVEYOR CLIENT: ETC Canyon Pipeline LLC SCALE: roil;AS SHOWN 5/16/08 16/08 SURVEYED BY: DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS WILLIAMS PRODUCTION RMT COMPANY PROPERTY, SECTION 1, T7S, R96W, GARFIELD COUNTY, COLORADO DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 WASATCH SURVEYING ASSOCIATES ATCH 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT SHEET 1 of 2 LEGAL DESCRIPTION A pipeline right-of-way located in the 81/2 of Section 1, T7S, R96W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows; Commencing at the Southeast Corner of said Section 1 and running thence N 00°44'24"E, 1187.64 feet along the east line thereof to the POINT OF BEGINNING; thence N 83°30'54' W, 2163.74 feet; thence N 76°21'00" W, 220.52 feet; thence N 69°05'07" W, 177.32 feet; thence N 85°37'37" W, 177.32 feet; thence N 80'29'13' W. 83.89 feet; thence N 69°03'03" W, 324.96 feet; thence N 64°40'15" W, 307.57 feet; thence N 59'08'07"W, 1325.72 feet; thence S 55°55'27" W, 723.04 feel; thence N 51°33'28" W, 74.51 feet to the POINT OF ENDING, said point lying on the West line of said Section 1, N 06°29'00"E, 2053.17 feet from the Southwest corner thereof. Said centerline being 5578.58 feet In length. The base bearing for this survey being N 00°44240E, 2664.24 feel between found monuments at the Southeast corner and the East One -Quarter comer of said Section 1. BASIS OF BEARING The base bearing for this survey is N 00°4424" E, 2664.24 feet between found monuments at the Southeast Corner and the East One -Quarter Corner of Section 1, T7S, R96W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruits, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL WILLIAMS PROD. RMT CO. Sec. 1, T7S R96W 5578.58 5578.58 POINT A Total 5578.58 RIGHT-OF-WAY LIMITS BOX Reference Points FROM TO Additional Temporary Work Space Left Permanent Right -of -Way Left Permanent Right -of -Way Right 15' Additionol Temporory Work Space Right 10' P.O.B. POINT A 20' 15' POINT A P.OE. 30' 15' 15' 0' CLIENT ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS WILLIAMS PRODUCTION RMT COMPANY PROPERTY, SECTION 1, T7S, R96W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN pcEMsi05/16/08 DRAWN BY: CJT DATE DRAWN: 3/055/08 PROJECT NUMBER: 07-11- 06 SURVEYED BY: uu SURVEYING ATCH WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 2 of 2 RIGHT OF WAY AND EASEMENT STATE OF COLORADO COUNTY OF GARFIELD KNOW ALL MEN BY THESE PRESENTS, that the undersigned, hereinafter referred to as GRANTOR, for and in consideration of the sum of TEN DOLLARS AND OTHER VALUABLE CONSIDERATION, paid by ETC CANYON PIPELINE, LLC, hereinafter referred to as GRANTEE, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, bargain, sell, assign and convey unto said GRANTEE, whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202, its successors and assigns, a Right of Way Easement, hereinafter referred to as ROW, to locate, survey a route, clear, entrench, construct, maintain, operate, and repair and replace as necessary a pipeline with appurtenances including, but not limited to, above and below ground valves, cathodic protection equipment, and pipeline markers hereinafter sometimes collectively referred to as the facilities, across, over, under, and through the lands of GRANTOR in the County of Garfield, State of Colorado, to wit: Subdivision Section Township Range SI/2 1 7S 96W This ROW shall be thirty (30) feet in width, more particularly described as a permanent easement encumbering fifteen (15) feet of land on each side of the centerline described in Exhibit A, attached hereto and incorporated herein by reference. An additional thirty (30) feet of temporary construction easement ROW shall be necessary, is hereby acquired by the GRANTEE and is more particularly described in Exhibit A (see Right -of -Way Limits Box and references made therein). The temporary construction easement shall expire one year from the date of execution of this Right of Way and Easement Agreement. This ROW shall carry with it GRANTEE's rights and benefits necessary or convenient for the full enjoyment or use of the rights herein granted, including, but not limited to, right of ingress and egress to and from, and access on and along said ROW, with the right to use existing roads, for the purposes of locating, surveying, constructing, operating, inspecting, testing, repairing, altering, and maintaining the facilities and the removal or replacement of same at will, either in whole or in part, and the replacement of said pipeline with either like or different size pipe, and the right to cut all trees, undergrowth, and other obstructions that, in its judgment, may injure, endanger or interfere with the use of said facilities. This ROW together with all rights herein granted shall be covenants running with the land and be binding upon GRANTOR, its heirs, executors, administers, personal representatives, legal representatives, successors, and assigns, and may be assigned by GRANTEE, either in whole or in part, subject to the terms hereunder. GRANTEE may, at any time, and upon permanent abandonment of said ROW and removal of all improvements constructed thereon, execute and record a reconveyance and release EXHIBIT hereof, whereupon this ROW and all rights and privileges herein mutually granted shall be fully cancelled and terminated. GRANTOR reserves the right to the full use and enjoyment of said property except for the purposes herein granted, but such use shall not hinder, conflict or interfere with GRANTEE's surface or subsurface rights hereunder or disturb its facilities and no road, reservoir, excavation, obstruction or structure shall be constructed nor be pennitted for construction, created or maintained on, over, along or within said ROW without prior written consent of GRANTEE. GRANTOR further agrees not to change the grade or otherwise remove dirt from the surface of said ROW without prior written consent of GRANTEE. GRANTOR hereby agrees that consideration received for this ROW fully compensates GRANTOR for all rights herein granted, as well as surface damages resulting from construction of the facilities. GRANTOR represents and warrants that it is the owner in fee simple of the land herein described, and that the land herein described is not encumbered by any deeds of trust, mortgages, liens, encumbrances, possessory interests or tenancies of any kind. It is hereby understood that the parties securing this grant on behalf of GRANTEE are without authority to make any covenant or agreement not herein expressed and this ROW, as written, covers all agreements and stipulations, between the said parties, and no representations or statements, oral or written, have been made modifying, adding to, or changing the terms hereof It is hereby understood that the parties executing this ROW on behalf of GRANTOR have authority to bind GRANTOR. IN TESTIMONY WHEREOF, the GRANTOR, herein has executed this conveyance this /' day of JU/2e_ , 2008. GRANTOR: Williams Production RMT Company A Colorado Limited Liability Company By: Joseph P. arrett Attorney -In -Fact 2 GRANTEE: ETC Canyon Pipeline, LLC Manager of Engineering - Projects THE STATE OF COLORADO CONTY OF !i0/7kt7 The foregoing instrument was acknowledged this // day of JCI f7 , 2008, before me, a notary public, in and for said county and state, personally came the above-named Joseph P. Barrett as Attorney -In -Fact for Williams Production RMT Company who is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. eakt h IN WITNESS WHEREOF I have hereunto set my hand and affixed my nota�§�2l;th day and year above written. My Commission Expires: THE STATE OF COLORADO Notary Public in and for The State of Colorado CONTY OF -1)(i)ye I' The foregoing instrument was acknowledged this/7 day of_1,1 tube> , 2008, before me, a notary public, in and for said county and state, personally came the above-named Arthur Smith as Manager of Engineering - Projects for ETC Canyon Pipeline, LLC who is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. My Commission Expires: Z/// / (, Notary Public ifi and fo The State of Colorado § 38-1-121. Appraisals --negotiations (1) As soon as a condemning authority determines that it intends to acquire an interest in property, it shall give notice of such intent, together with a description of the property interest to be acquired, to anyone having an Interest of record in the property involved. If the property has an estimated value of five thousand dollars or more, such notice shall advise that the condemning authority shall pay the reasonable costs of an appraisal pursuant to subsection (2) of this section. Such notice, however, need not be given to any of such persons who cannot be found by the condemning authority upon the exercise of due diligence. Upon receipt of such notice, such persons may employ an appraiser of their choosing to appraise the property interest to be acquired. Such appraisal shall be made using sound, fair, and recognized appraisal practices which are consistent with law. The value of the land or property actually taken shall be the fair market value thereof. Within ninety days of the date of such notice, such persons may submit to the condemning authority a copy of such appraisal. The condemning authority immediately upon receipt thereof shall submit to such persons copies of its appraisals. If the property interest is being acquired in relation to a federal aid project, then the appraisals submitted by the condemning authority shall be those which have been approved by it pursuant to applicable statutes and regulations, if such approval is required. All of these appraisals may be used by the parties to negotiate in good faith for the acquisition of the property Interest, but neither the condemning authority nor such persons shall be bound by such appraisals. (2) If an appraisal is submitted to the condemning authority in accordance with the provisions of subsection (1) of this section, the condemning authority shall pay the reasonable costs of such appraisal. If more than one person is interested in the property sought to be acquired and such persons cannot agree on an appraisal to be submitted under subsection (1) of this section, the condemning authority shall be relieved of any obligation herein imposed upon it to pay for such appraisals as may be submitted to it pursuant to this section. (3) Nothing in this section shall be construed as in any way limiting the obligation of the condemning authority to negotiate in good faith for the acquisition of any property interest sought prior to instituting eminent domain proceedings or as in any way limiting the discovery rights of parties to eminent domain proceedings. (4) Nothing in this section shall prevent the condemning authority from complying with federal and state requirements to qualify the authority for federal aid grants. (5) Nothing in this section shall be construed to limit the right of the condemning agency to institute eminent domain proceedings or to obtain immediate possession of property as permitted by law; except that an eminent domain proceeding may not proceed to trial on the issue of valuation until the ninety -day period provided in subsection (1) of this section has expired or the owner's appraisal has been submitted to the condemning authority, whichever is sooner. (6) If the parties involved in the negotiations fall to reach agreement on the fair market value of the property being acquired, the condemning authority, prior to proceeding to trial on the issue of valuation, shall furnish all owners of record a written final offer. EXHIBIT C Exxon:Aobil Global Services Company Global Real Estate and Facilities P.O. Box 2567 Houston, Texas 77252-2567 TO: Mr. Chuck Lurvey Wagon Wheel Consulting Inc. 111 E. 3rd Street, Suite 213 Rifle, CO 81650 We are transmitting to you the following: Ronald M. Smith Operations Manager Phone: (281) 654-6183 Fax: (281) 654-6392 obi! Date: 6/19/2008 Overnight: 4 - Regular Mail: for your records 4 for your handling as requested Description & Comments: Enclosed for your files and recordation is a fully executed original Easement and Right -of -Way Agreement for the ETC Canyon Pipeline project across the lands of ExxonMobil in Garfield County, Colorado. We have received the easement compensation in the amount of $58,965.39. When available, please send me a recorded copy for my files. Thanks for your assistance in this regard. TRANSMTLDOC Copies to: • 16825 Northchase Drive, Suite 200 Houston, Texas 77060 An ExxonA9obil Subsidiary EASEMENT AND RIGHT-OF-WAY AGREEMENT THIS EASEMENT AND RIGHT-OF-WAY AGREEMENT, dated effective this /8 — t day of , c 2008, is made by and between Exxon Mobil Corporation, a New Jersey corporation ("EMC"), and ExxonMobil Oil Corporation (formerly known as Mobil Oil Corporation), a New York corporation ("EMOC"), both located at 16825 Northchase Drive, Suite 200, Houston, Texas 77060 (EMC and EMOC being sometimes collectively referred to herein as "GRANTOR"), and ETC Canyon Pipeline, LLC, a Delaware limited liability company, located at 1600 Broadway, Suite 1900, Denver, Colorado 80202 ("GRANTEE"). EMC owns the fee lands that are described or depicted on Exhibit A as lands of "Exxon Mobil Corporation" or "Exxon" (the "EMC Lands"). EMOC (an affiliate of EMC) owns the fee lands that are described or depicted on Exhibit A as lands of "Mobil Oil " or "Mobil" (the "EMOC Lands"). The Easement and Right -of -Way that is granted below traverses both the EMC Lands and the EMOC Lands. In the interest of simplicity, EMC and EMOC are jointly entering into this Agreement, rather than executing separate easement documents covering their respective fee lands. Notwithstanding EMC's and EMOC's joint execution of this Agreement and their collective characterization as "Grantor" herein, all references in this Agreement to "Grantor" (either expressly or as a "party") shall refer (a) to EMC with respect to the EMC Lands (and the rights and obligations applicable thereto), and (b) to EMOC with respect to the EMOC Lands (and the rights and obligations applicable thereto). WITNESSETH: For and in consideration of the sum of Ten Dollars ($10.00) in hand paid, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor does hereby grant, bargain, convey and confirm unto Grantee an Easement and Right -of -Way together with the right to construct, lay, maintain, operate, alter, replace remove the following: • I Pipeline, 24 -inches in diameter, including but not limited to valves, regulators, meters, separators, purification equipment and pipeline with fittings, appliances, and appurtenant facilities. The Pipeline will be used for the transportation and processing of oil, natural gas, petroleum products or any other liquids, gases or substances which can be transported through a pipeline and for no other purpose. The approximate route of the Pipelines are depicted by the map on the Exhibit "A", attached hereto and made a part hereof. The Easement and Right of Way will be 30 feet in width, being 15 feet on each side of a center line of the right-of-way, for a total distance of approximately 19,458.58 feet. During the period of pipeline construction, Grantee will have the right to use an additional strip of land 30 feet in width along and on either side of the Easement and Right of Way described in this Agreement, except where Grantee's activities will interfere with irrigation ditches, streams or creeks. Grantee will bury the pipeline with a minimum of 36 inches of soil from the top of the pipeline to the normal surface of the ground. The affected areas must be re-contoured and reseeded with species which are consistent with adjacent, undisturbed areas upon completion of construction to prevent erosion. Grantee is permitted to Exxon/Mobil Canyon 4/10/08 cut all undergrowth and other obstructions that may injure, endanger or interfere with the Easement and Right of Way. The lands that are the subject of the above described Easement and Right -of -Way, are hereafter referred to as "Subject Lands". Grantor reserves the right to the full use and enjoyment of the Subject Lands as long as such use does not interfere with the purposes herein granted. The foregoing rights and privileges of Grantee are further conditioned upon the following: 1. DAMAGES: Grantee shall either repair and/or pay Grantor for damages (if any) caused by its operations on the Subject Lands relative to growing crops, buildings, ditches, fences and livestock of Grantor or Grantor's surface lessees. If Grantee makes any fence cut on the Subject Lands, it will install and provide for secure closure of gates. Grantee shall notify Grantor's current surface lessee, Tony Pressler, (970) 640-3321 or (970) 285-1070 of any activity which may impact their use of the Subject Lands and adjoining acreage. All gates of any kind or nature shall be kept by Grantee in the condition in which they were found upon entry. If Grantee discovers an open gate then Grantee will close the gate and notify Tony Pressler. This provision shall apply to subsequent surface lessees upon Grantee's receipt of written notice of the new surface lessee from Grantor. If requested by Grantor, Grantee will also install a cattle guard of sufficient size and substance to bear Grantee's traffic and to turn all livestock. All equipment or appurtenances to the pipeline or wells, which shall be on or above the surface of the ground, shall be installed in a manner to protect the livestock of Grantor or Grantor's surface lessee when necessary. Grantee shall not alter the natural flow of any creeks, streams, or irrigation ditches relative to the Subject Lands. 2. MAINTENANCE: All access roads, fences, and gates impacted by Grantee's use or operations which are subject to this Agreement shall be maintained by Grantee in as good condition as exists at the time of execution of this Agreement. Grantor shall give Grantee written notice of degradation or damage to the Subject Lands caused by Grantee's operations. Within a reasonable time after receiving written notice (not to exceed 15 days), if Grantee fails to repair or restore the roads, fences or gates to the condition described above and Grantor performs remediation or restoration on the Subject Lands, Grantee shall reimburse Grantor for all costs associated with such remediation or restoration within fifteen (15) days of receipt by Grantee of an itemized invoice for such services. 3. NON-EXCLUSIVE USE AND RESERVATIONS: This Agreement and all other rights hereby granted are not exclusive to Grantee and are limited to the specific grant herein. This Agreement does not, in any way whatsoever, convey any water rights or the right to use water. Grantor reserves unto itself and its successors and assigns all rights not specifically granted to Grantee herein. 4. AGRICULTURAL LIABILITY: Grantee shall take reasonable precautions to avoid damage to agricultural operations on or adjacent to the Subject Lands. Grantee shall have and assumes liability for all cattle, crops or chattel lost as a result of Grantee's operations on the Subject Lands. 5. LOCAL SPECIES/HABITAT LIABILITY: Grantee shall have and assumes liability for all endangered species, protected species, wildlife habitat and bio -diversity damaged or destroyed as a result of Grantee's operations on the Subject Lands. 6. LIABILITY OF THE PARTIES: Grantee covenants and agrees to fully defend, protect, indemnify, and hold harmless Grantor, its officers, directors, employees and agents, from and against each and every claim, demand or cause of action and liability, cost and/or expense (including but not limited to Exxon/Mobil Canyon 4/10/08 reasonable attorney's fees and costs incurred in defense of Grantor, its officers, directors, employees and/or agents), for damage or loss in connection therewith, which may be made or asserted by Grantee, Grantee's officers, directors, partners, members, employees and/or agents, or which may be asserted by any third party (including but not limited to Grantor's officers, directors, employees and/or agents), on account of personal injury or death or property damage caused by, arising out of, or in any way incidental to, or in connection with Grantee's use of the Subject Lands or the rights granted hereunder, except to the extent such damage or injury results from the actions of Grantor, its contractors, agents or assigns. Where personal injury, death, or loss of or damage to property is the result of the joint actions of Grantor and Grantee, Grantee's duty of indemnification shall be in proportion to its allocable share of such action. It is expressly agreed that the indemnity obligation specifically includes, but is not limited to, claims arising under the provisions herein entitled Agricultural Liability above, and all federal laws and regulations including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A.§9601 et. seq. and amendments, Resource Conservation and Recovery Act, 42 U.S.C.A. §6901 et. seq. and amendments, Safe Water Drinking Act, 42 U.S.C.A. 300f et. seq. and amendments, Toxic Substances Control Act, 15 U.S.C.A.§2601 et. seq. and amendments, Clean Water Act, 33 U.S.C.A. §1251 et. seq. and its amendments, Clean Air Act, 42 U.S.C.A. §7401 and amendments, Natural Gas Pipeline Act, 49 U.S.C.A. 1671 et. seq. and amendments, Hazardous Liquid Pipeline Safety Act, 49 U.S.C.A. 2001 et. seq. and amendments, and all state and local environment laws, rules and regulations. Neither party shall be liable to the other for any damages due to fire, earthquake, flood, windstorm and other like casualty or other causes beyond its reasonable control, nor for damages caused by public improvements or condemnation proceedings. Notwithstanding the foregoing, neither party shall be required to settle a labor dispute against its will. 7. LAWS, RULES AND REGULATIONS: Grantee shall at its sole expense comply with all federal laws and regulations as well as those of the State of Colorado and any other governmental authority having jurisdiction over Grantee's activities on the Subject Lands. 8. DRUGS, ALCOHOL AND FIREARMS: Grantee shall not allow the use, possession, transfer, purchase or sale of illegal drugs, narcotics, or other unlawful substances and materials by Grantee or its contractors, sub -contractors, agents, business invitees or other visitors while on the Subject Lands or adjacent lands. The use, possession, transfer, purchase or sale of alcoholic beverages, firearms and other weapons upon the Subject Lands or adjacent lands is absolutely prohibited. 9. HUNTING AND FISHING: No hunting, trapping or fishing is permitted on the Subject Lands or adjacent lands and no such rights are granted by this Agreement. 10. WATER AND DRAINAGE: Grantee shall have and hereby assumes absolute liability for damages to water wells, water tables, natural springs and running watercourses and water tanks within a one- quarter (1/4) mile radius of the Grantee's drilling operations insofar as damage can reasonably be determined to be the result of Grantee's operations. 11. NOTICE: Any notice or written demand to be given to Grantor or Grantee may be delivered in person, by fax or certified or registered mail, postage prepaid, addressed to the party for whom Exxon/Mobil Canyon 4/10/08 intended as follows: Exxon Mobil Corporation ExxonMobil Oil Corporation Attn: Ronald M. Smith, Global Real Estate 16825 Northchase Dr., Suite 200 Houston, TX 77060 (281) 654-6183 (281) 654-6392 (fax) ETC Canyon Pipeline, LLC Attn: Arthur Smith 1600 Broadway, Suite 1900 Denver, Colorado (720) 225-4000 Either party may give written notice designating a different address to substitute for the one above specified when necessary. Notice shall be deemed given upon receipt. 12. TERM: Grantee shall provide Grantor a written statement on or before each anniversary of this Agreement concerning Grantee's use or non-use of the Subject Lands. This Agreement shall terminate and all rights hereunder revert to Grantor when the Subject Lands have not been used by Grantee for the purposes herein granted for a period of two (2) years, except when non-use is caused by acts or circumstances beyond the control of Grantee. Surviving any termination it shall be Grantee's obligation to restore and reclaim all land affected by Grantee's activities (i) to the extent required by applicable law or regulation; or (ii) to the extent reasonably practicable and economic, to its equivalent prior condition, whichever of (i) or (ii) is greater including, but not limited to, the removal of facilities. At a minimum, the affected areas shall be re-contoured and reseeded with species consistent with adjacent, undisturbed areas in a manner sufficient to prevent erosion. 13. GOVERNING LAW: This Agreement and all matters pertaining hereto, including, but not limited to, matters of performance, non-performance, breach, remedies, procedures, rights, duties and interpretation or construction, shall be governed and determined by the laws of the State of Colorado. 14. MISCELLANEOUS: The consideration paid by Grantee to Grantor for this Access Agreement is set forth in that certain Letter Agreement between the parties dated v/, /c 1' . This Agreement contains the entire agreement between Grantor and Grantee and any 'prior oral representations or understanding concerning this Agreement or its subject matter shall be of no force and effect. This Agreement is subject to all contracts, leases, liens, easements and encumbrances or claims of title which may affect the Subject Lands and nothing contained herein shall be construed as a covenant or warranty against the existence of any thereof. The terms and provisions of this Agreement shall extend to and be binding upon the parties, their respective heirs, successors, legal representatives and third -party assigns; provided, however, no assignment by Grantee of the rights or obligations hereunder shall be made without Grantor's prior written consent, which shall not be unreasonably withheld. If Grantor consents to such assignment, it shall not be effective until Grantor has received an instrument or letter executed by Grantee and its assignee evidencing that such assignment has occurred and that such assignee has assumed all the obligations hereunder. Notwithstanding anything in this Agreement to the contrary, Grantee shall have the right, in its sole discretion, to assign to any affiliate or subsidiary following written notice to Exxon/Mobil Canyon 4/10/08 Grantor of such proposed assignment. IN WITNESS WHEREOF, the parties have executed this Easement and Right -of -Way Agreement the day and year indicated below but effective on the date first set forth above. GRANTOR: GRANTOR: EXXON MOBIL CORPORATION EXXONMOBIL OIL CORPORATION By: By: Anthony J. Tavano Anthony J. avano Agent and Attorney -in -Fact Date: 6 i f; A. T• GRANTEE: ETC CANY Iv PIPELINE, LLC Agent and Attorney -in -Fact Date: Arthur Smith Date: V/2 972,t0 STATE OF TEXAS COUNTY OF HARRIS i ft ACKNOWLEDGEMENTS The foregoing instrument was acknowledged before me on this a day of 2008 by Anthony J. Tavano, Agent and Attorney -in -Fact for EXXON MOBIL CORPORATION, a New Jersey corporation, on behalf of said corporation. My Commission Expires: \%(9,1 MELISSA WHITAKER $ "`' Notary Public, State of Texas My Commission Expires S'afiet February 22, 2012 Exxon/Mobil Canyon 4/10/08 STATE OF TEXAS COUNTY OF HARRIS ) ) ) The foregoing instrument was acknowledged before me on this nay day of , 2008 by Anthony J. Tavano, Agent and Attorney -in -Fact for EXXONMOBIL OIL CORPORATION, a New York corporation, on behalf of said corporation. My Commission Expires: 24a -a- j & STATE OF COLORADO COUNTY OF GARFIELD ) ) ) The foregoing instrument was acknowledged Arthur Smith as Manager of Engineering - Projects limited liability company, on behalf of said company. My Commission Expires: 7-/f-X?a// Notary Public ;io�xr Pori MELISSA WHITAKER Notary Public, State of Texas My Commission Expires February 22, 2012 before me on this S day of ,4jt( 2008 by for ETC CANYON PIPELINE,rLLC, a Delaware 'Ay Comm. Expires 7'/ `7 -„1; Exxon/Mobil Canyon 4/10/08 C, NORTHWEST CORNER SECTION 5 921 G L a BRASS CAP 512 SECTION 32. T6S R95W Owner: EXXON MOBIL Williams Prod. Well Pad 558'18'06"W 2503' P.O.S.L. (2237 45) Owner: EXXON MOBIL I S55'42'32"W, 611.11' o 115/lioms Prod. / Centerline of ry Proposed Pipeline o Well Pod 'n ^ - 561' 6'50'W 661.31' '/9, 3 3' gwi 1,_,549'04'13"W 136.83' M ^y n -2/NI 'A' h1 ,, S611'32'36'W, 79305' 32 i 56156'30"W, 297 558'18'06"W h to EAST 1/4 4, CORNER SECTION J2 1921 G.L.O. BRASS CAP • 54512'30'W, 969.22' See DetailWIliams Well Pad Prod. ((' EX/ST/NG PIPELINE (TYP) EXIST/NG POWERLINE (TIP) S87'56'107, 5313.77' Section 32, 260.46' N N88'47'S4'W, 14685' o co roro oco 51•1 WEST r/44 CORNER SEC RON 5 STONE LEGEND PUBLIC LAND SURVEY CORNER O ANGLE POINT P.O. P. POINT OF BEGINNING P.O.E POINT OF ENDING --5 O it ao O ^'1 Ni h 0) cy N !') O O NORTHEAST CORNER SECTION 5 1921 610 TsS, R95 BRASS CAP Section 5, T7S, R95W Detail (Not to Scale) LIENT ETC Canyon Pipeline LLC SCALE. AS SHOWN URVEYED BY REVISION: 3/10/08 DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS EXXON MOBIL CORP PROPERTY SECTIONS 5 & 6, T75, R95W & SECTION 32, T65, R95W, GARFIELD COUNTY, COLORADO DRAWN BY: CJT DATE DRAWN: PROJECT NUMBER: 07-11— 06 0WASATCH SURVEYING ASSOCIATES ATCU 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A SHEET 1 of 3 8 8 V N N00°4424""E, 2664.24" O e IP 2 WEST 1/4 CORNER SECTION 6 1902 CLO BRASS CAP Owner MOBIL OIL Properly Line / al Owner' EXXON MOBIL — / 511'32'06"W, 1871 Owner: EXXON MOBIL 00 N Centerline of Proposed Pipeline EXISTING POWERLINE (TYP) -APPROX. PROPERTY LINE / POINT 'B' (€ EXISTING P/PEUNE (TIP) NORTHWEST CORNER SECTION 5 /921 C.E.O. BRASS CAP o Williams Pr e Q Well Pad 9 n 3 0) 3 h h z W CORNER SECTION 6 1974 BRASS CAP GARFIELD COUNTY S88'39'45 "E, 2587.17' LEGEND PUBLIC LAND SURVEY CORNER O ANGLE POINT P.O.B. POINT OF BEGINNING P.0 E. POINT OF ENDING ,SOUTH 1/4 CORNER SECTION 6 STONE h 0 N81 m oro m o� D N 111 Co tta ST 1/4 — CORNER SECTION 5 STONE CLIENT: ETC Canyon Pipeline LLC DESCRIPTION RULISON TO ENTERPRISE PIPELINE ACROSS EXXON MOBIL CORP PROPERTY SECTIONS 5 & 6, T7S, R95W & SECTION 32, TES, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN REVISION: 3/10/08 DRAWN BY: CJT DATE DRAWN' 3/05/08 PROJECT NUMBER: 07-11-- 06 SURVEYED BY: eSWASATCH SURVEYING ASSOCIATES nal 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A SHEET 2 of 3 LEGAL DESCRIPTION A pipeline right-of-way located in the 81/2 of Section 32, TES, R95W, the NW1/4 of Section 5, and the E1/2 & the S W1/4 of Section 6, T7S, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commencing at the Southeast Corner of said Section 32 and running thence N 00°4158"E, 1513.30 feet along the east line thereof to the POINT OF BEGINNING; thence S 82°53'03" W, 77.49 feet; thence S 45°12'30" W, 969.22 feet; thence S 85°10'16" W, 351.05 feet; thence S 87°24'19"W, 142.57 feet; thence S 86°18'52" W, 232.23 feet; thence S 84°21'41' W, 185.89 feet; thence S 71°27'44" W, 616.18 feet; thence S 62°23'41' W, 573.16 feet; thence S 61°56'30" W, 297.37 feet; thence S 58°18'06' W. 75.03 feet to a point lying on the North line of said Section 5, said point lying S 87°56110"E, 2237.45 feet from the Northwest corner thereof; thence continuing S 58°18'06" W, 260.46 feet; thence S 55°42'32"W, 611.11 feet; thence S 61°1650" W, 661.31 feet; thence S 49°04'13' W, 136.83 feet; thence S 62°32'36" W, 793.05 feet; thence N 88°47'54' W, 148.85 feet to a point lying on the East line of said Section 6, said point lying, S 01°08'06" W, 1331.94 feet from the Northeast corner thereof; thence continuing N 88°4754' W, 54.20 feet; thence S 45°55'32" W, 378.42 feet; thence S 62°57'55" W, 210.84 feet; thence S 63°5746" W, 722.63 feet; thence S 59'50'24" W, 182.57 feet; thence S 82°38'24' W, 1255.53 feet; thence S 11 '32'06" W, 187.12 feet; thence S 56°07'05"W, 352.29 feet; thence S 59°2448" W, 29201 feet; thence S 58°40'21' W, 193.17 feet; thence S 75°13'58" W, 81.05 feet; thence S 79°31'56" W, 140.22 feet; thence S 57°36'29' W, 262.39 feet; thence S 52°00'05" W, 687.08 feet; thence N 75°07'04' W, 107.09 feet; thence N 82°17'12"W, 219.81 feet; thence N 83°24'11" W, 105.20 feet to the POINT OF ENDING, said point lying on the boundary line common to Exxon Mobil and Mobil Oil properties, N 28°3555"E, 1333.39 feet from the Southwest corner of said Section 6. Said centerline being 11563.41 feet in length. The base bearing for this survey being N 00°41'38" E, 2654.96 feet between found monuments at the Southeast corner and the East One -Quarter corner of said Section 32. RIGHT-OF-WAY LIMITS BOX PROPERTY OWNER Reference Points FROM TO Work Spoce Left Work Space Right P.O.B. POINT "A" 25' 35' POINT "A" POINT "B" 30' 30' POINT "B" POINT "C" 25' 35' POINT "C" POINT "D" 30' 30' POINT "D" P.O.E. 35' 25' RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL Sec. 32, T6S R95W 3520.18 EXXON MOBIL Sec. 5, T7S R95W 2611.62111563.41 Sec. 6, T7S R95W 5431.61 Total 11563.41 BASIS OF BEARING The base bearing for this survey is N 00°4138" E, 2654.96 feet between found monuments at the Southeast Comer and the East One -Quarter Corner of Section 32, T6S, R95W. CERTIFICATE OF SURVEYOR 1, Ted Taggart of Fruita, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CLIENT: ETC Canyon Pipeline LLC DESCRIPTION' RULISON TO ENTERPRISE PIPELINE ACROSS EXXON MOBIL CORP PROPERTY SECTIONS 5 Sc 6, T7S, R95W & SECTION 32, T6S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN IREwslD3/10/08 DRAWN BY. CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11— 06 SURVEYED BY: ATCli SURVEYING WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 3 of 3 LEGEND PUBLIC LAND SURVEY CORNER o ANGLE POINT P.O.B. POINT OF BEGINNING P.O.E. POINT OF ENDING i 8 0 0 8 0 0 0 - 0 REST 1/4 CORNER SECTION 33 1921 01.0 BRASS CAP 0, Co n TN N N S7805'57"W. 178.06 Edge of Pond O 8 Section 33 Section Line EAST I/4 CORNER SECTION 33 1982 ALUM CAP L5 74070 v Tn N n N. 3Q O nr ,---,---,--1,62g9.. wtl tory b— O— VI -co 'co2- C ry b ry 3 '3 N" r...5,,?; ✓_I • 2 O co n O QON O 3 p 3; i 33.N N h bY3 Cr(0YU 3 N O 3 3 i3 3 pO M in E No V1 N. N. M -co nf� NO^ 3 - 3 33 �. �J O O O Oa N O N. N`SN_J is �Op^ :P10 v N i.`"Nh O; i} M 33 !'1 b N 2 O n,O pVpyyinulMn aN h ^t V •.:11:.:, c pjEi VOi Vml Z 2V1`+,�/I 1/2 V in 10 _ _ 2 to 22i 2z22°)41.6 N00'4138"E 0 'i w) Existing Pipeline (typ) Centerline of Proposed Pipeline 51/2 SECTION 33, T6S R95W Owner: MOBIL OIL \-Williams Prod. Well Pad Existing Fence (typo) Owner: MOBIL OIL SOUTHNST CORNER S CC➢0N 33 1921 GL0 BRASS CAP WUTHEA ST CORNER SECTION 33 1978 BRASS CAP GARFIELD COUNTS SURVEYOR S89'17'24"E, 2617 96' SOUTH 1/4 CORNER SECTION 34 CALCULATED CLIENT: ETC Canyon Pipeline LLC SCALE. AS SHOWN [REvlslo 3/10/08 DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS MOBIL OIL PROPERTY SECTION 33 & 34. T6S, R95W, GARFIELD COUNTY, COLORADO DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 SURVEYED BY: WASATCH SURVEYING ASSOCIATES ATC/ 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A SHEET 1 of 4 LEGAL DESCRIPTION A pipeline right-of-way located in the S1/2 of Section 33, and the SW1/4 of Section 34, T6S, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commencing at the Southwest Corner of said Section 34 and running thence S 89°1724" E, 1740.33 feet along the South line thereof,• thence N 00°42'36"E, 1785.89 feet to the POINT OF BEGINNING, said point lying on the Southerly bank of the Wilcox Canal; thence S 84°4740' W, 175.70 feet; thence N 67°27'55" W, 98.87 feet; thence N 84°47'22"W, 80.06 feet; thence S 80°4729" W, 168.54 feet; thence S 85°1327" W, 281.40 feet; thence S 78°3849" W, 231.56 feet; thence N 42°13'57" W 213.27 feet; thence N 48°01'02" W, 56.82 feet; thence N 68°14'47" W, 67.02 feet; thence S 79°01'58" W, 436.76 feet; thence S 85°1127" IN, 36.83 feet to a point lying on the East line of said Section 33, said point lying N 00°54'45"E, 1832.23 feet from the Southeast corner thereof thence continuing S 85°1127" W, 80.72 feet; thence N 86°0217"W, 73.08 feet; thence N 79°58'18' IN, 130.03 feet; thence N 76010113" W, 283.23 feet; thence N 53021149" W, 200.43 feet; thence S 70°2127"W 272.41 feet; thence $ 62°5445" W, 313.97 feet; thence S 87°3625" W, 410.40 feet; thence S 89°28'42" W, 516.03 feet; thence N 83°50'45"W 290.20 feet; thence N 84°18'12" W, 641.14 feet; thence N 84°00'20" W, 239.11 feet; thence N 83°05038" W, 148,24 feet; thence N 60°44'01" W, 94.78 feet; thence N 84°4122"W, 338.76 feet; thence S 85°46'33" W, 81.35 feet; thence S 80°26'22" W, 564.23 feet; thence S 78°15'57" IN, 178.06 feet; thence S 81°12'05' W, 274.89 feet; thence S 82°53'03" W, 273.94 feet to the POINT OF ENDING, said point lying on the west line of said Section 33, N 00°41138" E, 1513.30 feet from the Southwest corner thereof. Said centerline being 7251.83 feet in length. The base bearing for this survey being N 00°54'45" E, 2712.81 feet between found monuments at the Southeast corner and the East One -Quarter corner of said Section 33. RIGHT-OF-WAY LIMITS BOX PROPERTY OWNER Reference Points FROM TO Work Space Left Work Space Right P 0_8 P 0.E 25' 35' Total 7251.83 RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL MOBIL OIL Sec. 33, T6S R95W 5405.00 7251.83 Sec. 34, T6S R95W 1846.83 Total 7251.83 BASIS OF BEARING The base bearing for this survey is N 00°5445" E, 2712.81 feet between found monuments at the Southeast Comer and the East One -Quarter Corner of Section 33, T6S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruits, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CLIENT: ETC Canyon Pipeline LLC DESCRIPTION SCALE: AS SHOWN SURVEYED BY: *EVISION: 3 /10/08 DRAWN BY. CJT RULISON TO ENTERPRISE PIPELINE ACROSS MOBIL OIL PROPERTY SECTION 33 & 34. T6S, R95W, GARFIELD COUNTY, COLORADO DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 AEIG SURVEYING WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 2 of 4 WEST 1/9 CORNER SECTION 6 1902 C.L.O. BRASS CAP Extolling Powerline (typ) Existing Pipeline (typ) Property Line-- Centerline of Proposed Pipeline P.O.E. N00.44'24 "E, Section Line ,L8'17Z 9 V Edge o! Exist. Road (typ) / / / Owner MOBIL OIL SOUTHWEST CORNER SECTION 6 1979 BRASS CAP GARFIELD COUNTY SURVEYOR (610.75) S88'39'45"E, 2587.17' Owner EXXON MOBIL / / 2 / 9 / / / / SOUTH 1/4 CORNER SECTION 6 ^ V STONED CLIENT: ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS MOBIL OIL PROPERTY SECTION 6, T7S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN SURVEYED BY REVISION: DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11— 06 01� WASATCH SURVEYING ASSOCIATES Mtn 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A SHEET 3 of 4 LEGAL DESCRIPTION A pipeline right-of-way located in the S W1/4 SW 1/4 of Section 6, 77S, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commencing at the Southwest Corner of said Section 6 and running thence S 88°39'45" E, 610.75 feet along the South line thereof, thence N 01°20'15"E, 1185.29 feet to the POINT OF BEGINNING; thence N 83°24'11"W, 441.25 feet; thence S 51°35'49" W, 77.22 feet; thence N 83°30'54"W, 124.87 feet to the POINT OF ENDING, said point lying on the West line of said Section 6, N 00°4424"E, 1187.64 feet from the Southwest corner thereof. Said centerline being 643.34 feet in length. The base bearing for this survey being S 88°39'45" E, 2587.17 feet between found monuments at the Southwest comer and the South One -Quarter corner of said Section 6. RIGHT-OF-WAY LIMITS BOX PROPERTY OWNER Reference Points FROM TO Work Space Left Work Space Right P.O.B. POINT "A" 35' 25' POINT "A" P.O.E. 30' 30' RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL MOBIL OIL Sec. 6, T7S R95W 643.34 643.34 Total 643.34 BASIS OF BEARING The base bearing for this survey is S 88°39'45" E, 2587.17 feet between found monuments at the Southwest Corner and the South One -Quarter Corner of Section 6, T7S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruits, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CLIENT. ETC Canyon Pipeline LLC DESCRIPTION RULISON TO ENTERPRISE PIPELINE ACROSS MOBIL OIL PROPERTY SECTION 6, T7S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN REVISION: 008 DRAWN 8Y. CJT DATE DRAWN. 3/05/08 PROJECT NUMBER: 07-11— 06 SURVEYED BY: 0WASATCH SURVEYING ASSOCIATES EMU 906 MAIN STREET. EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A SHEET 4 of 4 RIGHT OF WAY AGREEMENT STATE OF COLORADO COUNTY OF GARFIELD FOR AND IN CONSIDERATION of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid, the receipt and sufficiency of which are hereby acknowledged, TOSCO Corporation hereinafter referred to as Grantor, does hereby grant unto ETC Canyon Pipeline, LLC, hereinafter referred to as Grantee, its successors and assigns, a nonexclusive thirty (30) foot wide easement ("Easement") to, as applicable, lay, maintain, inspect, alter, repair, operate, protect, replace, relay, and remove or abandon in place, in Grantor's sole option, a) one twenty-four (24) inch natural gas pipeline for the transportation of natural gas thereof (all rights granted herein being collectively referred to as the "Purpose"); upon, through and under the following described land, situated in GARFIELD County, State of COLORADO, to wit: Subdivision Section Township Range SW1/4SW1/4 25 6S 95W SE1/4S/E1/4 26 6S 95W S1/2 34 6S 95W 35 6S 95W (the "Property") THE PIPELINE SHALL BE LAID IN ACCORDANCE WITH THE CENTERLINE DESCRIPTION DESCRIBED AS EXHIBIT "A" AND THE PLAT DESCRIBED AS EXHIBIT "B", BOTH OF WHICH ARE ATTACHED HERETO AND MADE A PART HEREOF. together with the rights of ingress and egress to and from said Easement over and across existing roads on the Property for the Purpose. Any existing roads damaged by Grantee shall be repaired and left in the same condition as before use, including, but not limited to grade, drainage, gravel base, and cattle guard, fence and gate conditions. Grantor shall have the right to fully use and enjoy the Property except as to and consistent with the rights granted herein. This grant is subject to all grants, easements, leases, mineral leases or rights, reservations, rights and rights-of-way heretofore reserved or granted and/or now existing on the Property and is further made without warranty of title, express or implied. Grantor shall not construct or permit to be constructed any house, structures or permanent obstructions that unreasonably interfere with the construction, maintenance or operation of any pipeline or appurtenances constructed hereunder. The Easement herein granted is subject to the following terms and conditions: 1. Grantee shall pay for damages to the fences, roads, premises, or improvements of Grantor or third party(ies), caused by the exercise of Grantee's rights under this Agreement. Grantee shall maintain a twenty five (25) foot clearance between its pipeline and any other existing pipelines located on the described land. 2. Grantee agrees to bury its pipeline to a depth not less than forty eight (48) inches, measured from the top of the pipeline to the average level of the original ground on the two sides of the Right -of -Way to Others.doc (November 2003) ditch in which said pipeline is laid and where said pipeline crosses an irrigation ditch or canal, the top of the pipeline shall be buried at least sixty (60) inches below the lowest point of the channel where said pipeline crosses any such ditch or canal. Grantee shall place water bars on all slopes to protect against erosion. 3. Grantee shall provide Grantor with an as built centerline survey of Grantee's pipeline across the Easement and made a pad hereof. The beginning and ending points of the survey shall be tied to property corners by angles and distance and tie points shown at every pole. 4. In the event Grantor determines, in its sole discretion, that its business or operations will require or benefit from the use of any portion of the Easement, Grantee, at its sole risk and expense, shall relocate all or any part of said pipeline, as applicable, within 90 days after notification from Grantor. In such event, Grantor shall furnish Grantee with a suitable alternative right of way across the Property at no additional cost, subject to the terms herein. Grantee agrees, in the event of such relocation request by Grantor, that it shall restore the surface disturbed thereby as nearly as practicable to the condition thereof prior to the disturbance. 5. GRANTEE COVENANTS AND AGREES TO FULLY PROTECT, RELEASE, INDEMNIFY, DEFEND AND FOREVER HOLD GRANTOR, ITS PARENT, SUBSIDIARIES AND AFFILIATES, CONTRACTORS AND SUBCONTRACTORS, THEIR SUCCESSORS AND ASSIGNS, AND EACH OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS AND REPRESENTATIVES (HEREINAFTER COLLECTIVELY REFERRED TO AS THE "INDEMNIFIED PARTIES"), HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, FINES, PENALTIES, DAMAGES, SUITS, CAUSES OF ACTION JUDGMENTS, COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES, COSTS OF LITIGATION AND/OR INVESTIGATION AND OTHER COSTS ASSOCIATED THEREWITH), AND LIABILITIES, OF EVERY KIND, (COLLECTIVELY REFERRED TO HEREAFTER AS "CLAIMS"), INCLUDING WITHOUT LIMITATION THOSE RELATING TO INJURY OR DEATH OF ANY PERSONS WHOMSOEVER, AND/OR DAMAGE (INCLUDING ENVIRONMENTAL DAMAGE) TO, LOSS OF, OR CONTAMINATION OR POLLUTION OF, ANY PROPERTY OR RESOURCE, THAT MAY BE MADE OR COME AGAINST THE INDEMNIFIED PARTIES BY REASON OF OR IN ANY WAY ARISING OUT OF THE PURPOSE, REGARDLESS OF THE CAUSE OR CAUSES THEREOF, INCLUDING WITHOUT LIMITATION WHETHER THE SAME IS CAUSED BY OR CONTRIBUTED TO BY THE INDEMNIFIED PARTIES' JOINT OR CONCURRENT NEGLIGENCE OR FAULT (WHETHER IMPOSED BY STATUTE, RULE, REGULATION OR OTHERWISE) AND STRICT LIABILITY, EXCEPT TO THE EXTENT ANY SUCH CLAIMS ARE CAUSED BY THE INDEMNIFIED PARTIES' SOLE NEGLIGENCE OR WILLFUL MISCONDUCT. 6. In the event Grantee abandons the rights granted herein, all rights granted herein shall terminate and Grantee shall, at the written request of Grantor, execute a proper recordable instrument evidencing such termination. The rights herein granted shall be deemed abandoned if: (a) Grantee does not construct its pipeline within one (1) year from the date hereof; or (b) after completion of construction, Grantee's pipeline is not used for the Purpose herein granted at any time for a continuous period of one (1) year. Upon termination of the rights herein granted, at Grantor's sole option, Grantee shall either remove its pipeline from the Easement or abandon the pipeline in place. 7. After completion of construction and whenever repair or maintenance is made on its pipeline, Grantee shall restore the ground disturbed thereby as nearly as practicable to the condition thereof prior to the disturbance. Grantee shall not store or dispose of any materials, substances or debris on the Easement, including without limitation, any rocks, brush, branches, or trees which Grantee may have cleared. 8. All exhibits referenced herein, unless otherwise noted, are attached hereto and made a part hereof for all purposes. Right -of -Way to Others.doc (November 2003) 2 9. No waiver of the provisions hereof shall be effective unless in writing and signed by the party to be charged with such waiver. No waiver shall be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of a similar or dissimilar nature, unless expressly so stated in writing. 10. This Agreement is intended solely for the benefit of the parties hereto and shall not create any rights, including without limitation any third party beneficiary rights, in any third party. 11. In the event any provision or any portion of any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable by reason of any law or public policy, such provision or portion thereof shall be considered to be deleted, and the remainder of this Agreement shall constitute the entire agreement between Grantor and Grantee covering the subject matter hereof. 12. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflicts of law principles that might apply the law of another jurisdiction. 13. This Agreement contains all of the agreements and stipulations between Grantor and Grantee with respect to the granting of the Easement, and the same shall inure to the benefit of and be binding upon Grantor and Grantee and their respective successors and assigns; provided, however, that Grantee shall not have the right to assign this Agreement or any of its rights hereunder, in whole or in part, by operation of law or otherwise, without the prior written consent of Grantor, which consent shall not be unreasonably withheld. 14. Any notice, request, instruction or other document to be given hereunder by either party to the other shall be in writing, and delivered personally, by telecopy, by messenger or by certified mail, postage prepaid, return receipt requested as follows: If to Grantor, addressed to: With a copy to: If to Grantee, addressed to: ConocoPhillips Company Real Property Administration PO Box 7500 Barltesville, OK. 74004-7500 ConocoPhillips Company Director, PTRRC Rockies Region PO Box 358 Borger, TX. 79008-0358 ETC Canyon Pipeline, LLC 1600 Broadway, Suite 1900 Denver, CO. 80202 720-225-4000 Either party may change its representative or the address to which notice shall be directed by appropriate written notice to the other party in the manner described above. 15. Grantee shall notify Grantor on or before the seventh (7th) day preceding any entry onto the Property for any non -emergency operations by the Grantee, its agents or contractors in the event an emergency requires that Grantee, it agents or contractors immediately enter the Property, Grantee shall make all reasonable efforts to notify Grantor of such entry. In either case, such notification shall include notification of the time of entry, the anticipated duration of entry, the location or locations of operations, the type and number of equipment involved and the routes to be used from public roads to the location or locations of the operations. Grantee shall comply with any reasonable request of Grantor to alter the Right -of -Way to Others.doc (November 2003) 3 routes to be used from public roads to the location or locations of the operations. 16. There shall be no above -ground installations or structures on the Easement, except markers and/or cathodic testing stations at fence lines, roadway, streams or ditches, without the express written consent of Grantor. EXECUTED on the dates set forth in the acknowledgments, but effective for all purposes as of the q day of <3{±444 20Q (the "Effective Date"). GRANTOR TOSCO Corporation By: ..).- e -j Title: Michael J. Moore Attorney -in -Fact GRANTEE ETC Canyon Pipeline, LLC By: A/ r( Title: Arwr Jh r ` t. i ria (..)e / [ E '&14. 11 STATE OF TEXAS Right -of -Way to Others.doc (November 2003) 4 tom. COUNTY/PARISH§ On this Jo, day of - 200 , before me undersigned officer, personal) ppeared 77ti< 2 e a..aLe , known to me (or satisfactorily proven) to be the person whose name is sublscribed as Attorney In fact, of TOSCO Corporation, and acknowledged that he/she, as such Attorney In Fact, being authorized so to do, executed the foregoing instrument as the act of his/her principal for the purposes therein contained, by signing the name of the said TOSCO Corporation by himself/herself as Attorney In Fact. co -TA Y PUBLIC Notary Public in and for oC4f'� County/Parish y commission expires: f, STATE OF COLORADO § COUNTY/PARISH OF Dc• v c v § FRAN BRADEN NOTARY PUBUO, STATE. Of TEXAS Int -1.1-2012 On this E,4day of'--r'+`-H.'6Ly200jS', before me Ct-LJ :1 � tx- -C-5- the undersigned officer, personally appeared Arthur Smith, known to me (or satisfactorily proven) to be the person whose name is subscribed as Manager of Engineering - Projects, of ETC CANYON PIPELINE, LLC, and acknowledged that he/she, as such Manager of Engineering - Projects, being authorized so to do, executed the foregoing instrument as the act of his/her principal for the purposes therein contained, by signing the name of the said ETC CANYON PPIPELINE LLC, himself/herself as Manager of Engineering - Projects. NOTARY PUBLIC Notary Public in and for County/Parish My commission expires: /3/-aci L. Right -of -Way to Others.doc (November 2003) 5 CF -ERIE LEE HENLEY NOTARY PUBLIC STATE OF COLORADO MY COMMISSION EXPIRES 61312012 EXHIBIT "B" — LANDOWNER SPECIFIC STIPULATIONS GRANTEE agrees to the following stipulations: 1. Bury all pipe to a minimum of 48 -inches of cover, so as not to interfere with cultivation of soil. 2. Repair all fence crossings to as good or better than previous condition. 3. Cease construction operations in excessively muddy conditions. 4. Any and all construction vehicles, equipment and materials, while not in use, shall be parked or placed in the ROW. 5. All ROW and access roads shall be kept safe and in good order, and shall at all times be kept free of litter and debris caused as a direct result of GRANTEE'S activities. 6. Except for normal and routine maintenance and repair during construction activities, no construction equipment shall be repaired or maintained upon subject lands. No motor fluids will be disposed of on the subject lands. 7. All gates shall be left as they are found. Access must be coordinated with tenants, if any. 8. No firearms, pets, alcohol or illegal drugs shall be allowed on the property at any time. 9. GRANTEE shall seed all disrupted areas with either BLM seed mix, or the seed-type(s) selected by GRANTOR. 10. GRANTEE shall be responsible for weed control in all areas disturbed by GRAN 1 EE throughout the term of this ROW. 11. Any large rocks (greater than 4" in diameter) excavated by GRANTEE shall be distributed or disposed of by GRANTEE as directed by GRANTOR. 12. The ROW shall be returned to the original topography, to the extent feasible, so that there are no permanent mounds, ridges, sinks or trenches. 13. All operations should be coordinated with tenants, if any, on a daily basis, or as near as possible. 14. Notice by either party hereto shall be promptly given orally, and if necessary or possible, confirmed in writing and mailed to: GRANTOR: ConocoPhillips Company Real Property Administrator P.O. Box7500 Bartlesville, OK 74004-7500 With a copy to: ConocoPhillips Company Director, PTRRC Rockies Region P.O. Box 358 Borger, TX 79008-0358 GRANTEE: ETC Canyon Pipeline, LLC 1600 Broadway, Suite 1900 Denver, Colorado 80202 (720) 225-4000 Right -of -Way to Others.doc (November 2003) 6 o 0 I 26 olVEST I/4 CORNER LEGENDI SECTI0 aro. 2s aro. BRASS CPP o W LL PUBLIC LAND SURVEY CORNER 0 ANGLE POINT P.O.B. POINT OF BEGINNING ( - W M v ‘11?. 1, 11 �+ N P.O.E. POINT OF ENDING SEt/4 SE1/4 Aa 3 3 Z ,_, SECTION 26, Thy R95W Ostag' N Oa4pcml le n O ( Owner: PUCKETT LAND CO. (60%) & TOSCO CORPORATION (40%) Z I spec. y 2.60 Acres rip' P - �,,,� — n Z// Qo nn poi I m r N^ 3M co 4 LA ^ 3 • 3n¢;n In 3 ` o'n F-oO 'n', o NORM 1/I P h N CORNER 2703.99', n vii f/ Section 26 CALCULA TEO N88.4609"W pOSL� / N88'46'09"W, 2703.99' s6cnON 3s – - pq �U. // NURP. (w. e /��.0.�0 AQO�/• G'f� f /' OE i 4P 1-- I A O I; S Iln %b +,,¢ riN I 0 ?I' NORTHWEST CORNER SECTION 1921 BRASS 35 O.L O. CAP 10 LO NI ry I Section 35 1173.980 55503'41'4. 448.65' / ( / I 553'48'48`4, 791.90' / / / / • / < I Williams Prod. 156274'22'W, 95.63' Well Pod 553'41'19"W. 126.30' /j ^ ," 54715'54'W, 143.43' = / �/ Exis(ing Pipeline n See Detail b Williams Prod. 588'44'16"E,� NORTHEAST 4' 1102.1 CORNER SECTION 35 1921 6.LO. BRASS CAP N) N N W w �o Owner: PUCKETT LAND 60. (60%) & h R 553'31'56'4, 1158.45' / hf / KA Well Pad -,4- O IT) ;'> Tosco CORP. (40%) / o e - Cen ferline of Proposed Pipeline W W UJ NEST CORNER4 SECTION STONE p Z 35 J/lly/ a .`". 553'3 '�W, '0 N \ 57934'44"W, H N - j 55328'34"W. 176.63' / / r 5872'26"W, 293.05' N l. i7 R v Williams Prod. 3 e // Well Pod { w II ]o.3s' 218.85' Detail (Not to Scale) 7 O 0 a C ----r--2 JI \ P.O.S. 1{ n 0) 3 b IN N 'a In4i N I'1 N N r) 0 ZSECTION % JJ a � Existing Fenceline Ow) r; d N v SOUTHWEST CORNER 35 1978 CAP CARFIELD COUNTY SURVEYOR 33V (WC. 278' N. OF / CORNER) / E�Ce ed P• �P`/ / ihe EAST",r. CORNER ` \ SECTION 35 FOUND REBAR In elj N N 3 In 0 o U1 SOUTHEAST CORNER SECTION 35 ®/ 2000 ALUM. CAP OPLS 28643 CLIENT: ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS PUCKETT LAND COMPANY (60%) & TOSCO CORPORATION (40%) SECTIONS 25, 26, 34, & 35, T6S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN 7EV1510N: 4/17/08 DRAWN BY: CJT DATE DRAWN: 3 0j 08 / PROJECT NUMBER: 07-11— 06 SURVEYED BY. //� WASATCH SURVEYING ASSOCIATES �''v-ATM 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 �/(� EXHIBIT A SHEET 1 of 3 LEGAL DESCRIPTION A pipeline right-of-way located in the SW1/4 SW1/4 of Section 25, the SE1/4 SEI/4 of Section 26, the 51/2 of Section 34, and Section 35, TES, R95W, 6711 P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commencing at the Southwest Comer of said Section 25 and running thence S 88°44'16"E, 1102.14 feet along the south line thereof, thence N 01'15'44"E, 1027.81 feet, more or less, to the POINT OF BEGINNING; thence N 50°08'55" W, 312.62 feet; thence S 50°51'09' W, 1132.55 feet to a point lying on the East line of said Section 26, said point lying N 00°4334"E, 488.65 feet from the southeast corner thereat thence continuing S 50°51'09" W, 407.27 feet; thence S 79°19'53"W, 74.22 feet; thence S 57°45'07" W, 236.29 feet thence S 85°19'09' W, 563.91 feet thence S 55°03'41"W, 35.68 feet to a point lying on the north line of said Section 35, said point lying N 88°46'09"W, 1173.98 feet from The northeast comer thereof, thence continuing S 55°03'41' W, 448.65 feet thence S 53'4848" W, 791.90 feet; thence S 62°24'22' W, 95.63 feet; thence S 53°41'19"W, 126.30 feet; thence S 47°15'54' W, 143.43 feet thence S 53°31'8' W, 1158.45 feet; thence S 5320'03" W, 70.35 feet; thence S 79°3444"W, 218.85 feet thence S 532834'W, 176.63 feet; Thence S 582226" W, 293.05 feet thence S 56'1634' W, 128.72 feet thence S 26°46'09" W, 591.20 feet thence S 58'49'43' W, 1129.58 feet thence S 74°544' W, 30.20 feet to a point lying on the East line of said Section 34, N 00°3753" E, 2144.44 feet from the southeast corner thereof thence continuing S 74°5447 W, 604.85 feet; Thence S 833347' W, 256.14 feet thence S 84'27146"W, 891.35 feet thence N 83°21'16"W, 1030.60 feet; thence S 53.1629' W, 811.85 feet thence S 84'47'40" W, 200.08 feet to the POINT OF ENDING, said point lying on Me Southerly bank of the Wilcox Canal, N 44°58'11"E, 2493.62 feet from the Southwest corner of said Section 34. Said centerline being 1196024 feet In length. The base bearing for this survey being S 00°4124' W, 2748.13 feet between found monuments at the Northeast corner and the East One -Quarter corner of said Section 35. RIGHT-OF-WAY LIMITS BOX Reference Points FROM TO Work Space Left Work Space Right P.O.B. POINT "A" 30' 30' POINT "A" P.O.E. 25' 35' RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL PUCKETT LAND COMPANY (60%) TOSCO CORPORATION (40%) Sec. 25, T6S R95W 1445.17 Sec. 26, T6S R95W 1317.37 Sec. 34, T6S R95W 3794.86 Sec. 35, T65 R95W 5402.94 11960.34 Total 11960.34 LIEN T: ETC Canyon Pipeline LLC hSCALE: ENSION: AS SHOWN 4/17/08 I DRAWN BY: CJT PURVEYED BY: BASIS OF BEARING The base bearing for this survey is S 00°41'24"W, 2748.13 feet between found monuments at the Northeast Corner and the East One -Quarter Corner of Section 35, T6S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruits, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS PUCKETT LAND COMPANY (60%) & TOSCO CORPORATION (40%) SECTIONS 25, 26, 34, & 35, 165, R95W, GARFIELD COUNTY, COLORADO DATE DRAWN: 3/05/08 WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 62930 (307) 789-4545 PROJECT NUMBER: 07-11-06 EXHIBIT A SHEET 3 of 3 A TrFiNTAr r. c --0 At. THIS EASEMENT AND RIGHT -OF 's'\Y AGREEMMIEt' is entered into and effective the i"/'i day c.l'_ -rT 2008, between Puckett Land Company, 5460 South Quebec Street, Suite I/250, Cnee nwood Village, CO 801 1 1 (` ORAl..,.OR") and ETC Canyon. Pipeline, LLC, 1600 Broadway, Suite #1900, Denver, CO 80202 ("GRANTEE"). RECITALS A. Grantor rr rresents but does not warrant that it owns an interest in the s'; ace estate to the nronerty described below ("Subicet Lands") and located in GAgneto County, Stare of Colorado described as follows: Subdivision Section Towmshio Range SWI/4SW1/4 25 65 95W SEl/4S E}/4 26 6S 95W S1/2 34 65 95W 35 6S 95W B. Grantee desires to obtain a pipeline easement ("the Easement") for the purpose of constructing, maintaining and operating a natural gas pipeline ("New Pipeline") for the gathering and/or transportation of oil, gas and other hydrocarbons across the Subject Lands. AGREEME 1-' T In consideration of the foregoing recitals and the to --s, covenants and conditions contained herein, Grantor and Grantee armee as follows: CONS: 3ERl i ON: Grantee shall pay Grantor a one-time payment on the date of execution of this agreement, the sum of. , , proportionally reduced by Grantor's interest in the property, if less than 100% ownership (actual ownership is 60% of or ft times (1,961 ft, = and a payment of ./acre for 2 staging area estimated to be 60% of4 acres = /. Said consideration covers Grantees use of the right-of-way to install a pipeline, which is herein recited and reflected on the attached Exhibit "A". PIPELINE & RIGI'T-OF-WAY: An easement and right-of-way to construct, lay, maintain, modify, operate, alter, replace, rer..ove the New Pipeline, including but not limited to valves, regulators, meters, separators, purification equipment end pipeline with fittings, appliances, and appurtenant facilities. Staging areas err not gnawed under this easement. The pipeline shall be used for the transportation and processing of oil, nst raj gas, petroleum products or any other liquids, eases or substances which can be transported through a pipeline and for no other purpose. The centerline of the route for the pipeline easement granted herein is depicted on Exhibit "A", attached hereto and made a part hereof. Said easement and right of way shall be thirty (30') feet in width, fora total distance of approximately seven hundred twenty five rods (725 rods). The pipeline route as shown on Exhibit "A" is subject to change upon receipt of a final survey, a certified copy of which shall be provided to Grantor at no cost. During the constriction of said pipeline an additional, temporary easement totaling thirty (30') feet in width, comprised of an additional fifteen (15') fret on each side of the easement centerline, is hereby granted. Except where Granter's activities will int-`e_e with irrigation ditches, imams or creeks, C.I entr.e shall bury the pip , with a i im-c of forty-eight inches (48") of soil from the top of the pipeline to the normal surface of the ground. The affected areas shall be recontou ed and reseeded c.,_'" species which are consistent with adjacent, undisturbed areas upon completion of pipeline cone'. teflon to prevent erosion. Grantee shall be permitted to at- all undergrowth and other obre-totions that may injure, endanger or interfere with the use of said pipeline. Grrntee may request from time to time, to lay within the right of way described above an additional line(s) of pipe similar to or different in size from and alongside of the line herein mentioned, Grantor reserves the right to approve such request on a case-by-case basis. Upon such approval Grantee shall pay Granter, his heirs or assigs for each additiona' line a sum of money equal to the consideration paid for the first Pipeline and Right -of -Way easement within 30 days of such written approval. PUCKETT LA COMPANY l of 6 3/25/2008 Grantor reasons the not io the rise and enjoyment orihri Subject Lau stecipt exceptfor the pUrpOSeS beeta graft Led. Such rights reserved o the Grantor may include the conducting of cayiag -„cion, and grazing oincratecris, and Grantee agrees to coordinate pest toms ;tten and Mai aternahSe operations irtns wt ,_ lmv:ng and ranching operations In no event shalt the location of his Rin of -Way =n.-asnoebl; interfere with use of the Subject Lads for commercial rcial development of any c ed, o, oil, gas, ane on shale 'eveloomreni The foregoeig rigntat andprig: es of Eftaittect are further condlt once upon the following I DA %A '_S: Gra-dee shah either r reran and/or nay Granter for damages (if r y) caused by is operations on the Suh,cet Lands relative to grossing crops, b LeGros, dietetics, fences and livestock of Gr auror or Grantor's surface lessees. If Grantee makes any fence act on the Sin ted lands, it will install and provide for secure closure of gases. AV gates of any kind or nature shall be teat by Grantee in the condition In which they were found upon entry. IfGrantee ii h. _ s an opera gate then Grantee will close the gate and notify Grantee Alt cacipment or appurtenances to the pipeline or wells, which shall he on or above the surface of the groend, shall he installed in a moniker to r, tett the livestock of Grantor or Grantor's surface lessee when necessary. Grantee shall not alter the natural dery of any creeks, streams. or _, ;potion ditches relative to the Subjects Lands. Granter, shell notify Jay Anderson with Pocket Land Company of any activity- that may 711h2ael Grantor's rat of the Subject Lands and adjoining arreagn 2. OPENING AND ReiSTORATtOid OF FENCES: Opening and restoration of Grantor's fences areel be made at Grantee's sole cost, risk and expense as follows: _. Pnor'eabetot grantor's s fences, at each fence opening Grantee shah tic the existing once rote a three -post, pipe "N'• brace built pursuant to the following specifications. _. Eight foot (8') by six inch (o') treated posts shall he set at least forty-two inches (<C ') in the around and shall be enticed to take the strain. - Center crosses shall be placed a minimum of thirty-six inches (35") above the ground. 2.2 Grantee shall install fence stays every lour fee ts) in all temporary gates installed n Grantor's fences, 2.7i Grantee shall install a fence around all mud pits. Said fence shall have pipe "n` braces with Eve wires. Grantee shall install posts every twelve feet, 2.h. Grantee shall be responsible for preventing Grantor's livestock horn escaping from or enabling livestock of others Purim entering through any fence openings resulting from. Grantee's construction activities If a gate is left open, Grantee is responsible for the cost involved in gathering the cattle that escaped, including the actual costs for cowboy(s) needed to recover any escaped livestock phis reimbursement fat any damages. If it is determined that the livestock can not be recovered within a cost effective amount of thee ranee shall have the option of compensating the Grantor for the actual doss inn .,d due to the loss of livestock instead of continuing to attempt to recover the livestock. Upon Grantee's completion of the construction, repair, maintenance, or alteration el' ...e nipelines, Grantor, shall promptly rebuild or repair any affected permanent fences equal to or better than the existing fence. Doth Grantee and its contractors shah first consult and obtain Grantor's approval far location of fence work. materials and construction applications. Grantee shall use Nit," staples, wood posts, Colorado rne'l and Iron (Ckeel) heavy-duty steel posts and Cii&I bearer wire to rebuild Grantor's fence and consult with Grantor for approve of the fence builders that will do the fence re-ptue_aem. 2.6. Fences shall not be considered equal to the existing fence if the posts have been undercut or brush has been shoved into the fence. If Grantee has disturbed the ground, plowed mud, or added other material within three feet of a fence ii shall be Grantors judgment as to what fence is not ecual to or better than the existing fence. if _cquest d in writing by Grantor t ramie will` also install pipe nettle guards of sufficient size and substance to bear Grantee's traffic and to tem all livestock. Such cattle guards scab, not be installed without prior app -oval of Cantor and shall ha installer in such a manner as to prevent water draining trio the cattle guards, n a.eers at a height _o they art vis:ble to cattle nom reasonable distance and sha I 'Ye cleaned anee and otherwise maintained d by Grantee Quality metal gates shall be a minimum of ten feet in width, shall cot an:. either a metal sate or er :t fence and shall be placed across and adjacent to :he catty! gar --ds. PUCK ATI I. Nl) COMPANY 2 at 6 3015, 008 3 LIVESTOCK: f any of the Grantor's or Grantor s lesseen livestock are injured or killed ay e direr: or indirect actions of the Grantee or its empioyees. contractors, subcontractoss on r s (stick :Mary or death being verified i_d by veteattary evidence), the Grantee, shall pay the Granter Ile . _teI: i ,. , medical or other costs ?, ahi t :e an injured animal, or reimburse Grantor or Grantors lessee() the alue of an animal killed or euthat cseo aotording to he following schedule: Si eews Replacement cost of a bred het fer or Si,Oleg 00 whichever is gr alves: M ] _ value or 700 lb. calf or 5750.00, whenever eve greater; Buis: $3,000 00 or tic acquisition price lot that animal, whichever is ,gr ter=-.-; . logs: Current imatiest once or for acquisition phce for that dile], whichever x grr'eter. 3.5. Horses: Granter shad maintain ar d provide to Grantee upon Grantee s wif tee dues',, an Inventory elks norses as well as the horse's market value Grantee agrees to reimburse Clamor the value of the horse ha ed on the Inventory tory in the event the horse is kii,ed by the direct or indirect actions of he Grantee. _heat. Gibe- ton sricated I t. - tock: Them -current I - '•ken price ite me acquisition isiiits for that animal, whichever is greater. - - 4. MAINTENANCE: Ali access roads, fences, and gates impacted by Grantee's use or operations winch are subject to this Agreemem shall be maintainer by Grantee in as good condition as exists at the time of execution of this Agreement, ement, ordinary wear and teas excepted. Grantor shah give Grantee written no_ice of degradation or damage to the Subject Lands caused by Grantee's operations. 5 WEED D COtO t r til : Grantee shall tie responsible for controlling all noxious weeds, including witho t limitation, halo Cron cocklebur, Canadathistle. k tapweed species. leafy spurge, ..oundstouege musk thistle and whitemp species on lands r sturbed beets -mer.. Grantee shall also be responsible for in -eventing such noxious weeds from soreadi reg to Grantor s lands adjacent to the easement. In the event such noxious weeds spread to Grantors lands adjacent to nut lands subject to the easement granted herein, Grantee shall ..resineastie for controlling the noxious weeds of those lands as well, provided that those portions of the Subject Lands affected by the constriction of the right--of-way were fres, of stash noxious weeds pro- to such time of construction. if the lands immediately adjacent to the right-of-way erre not free of such noxious weeds prior to constotottor: of the same. Grantee's responsibility shalt he limited to reasonable control of such noxious weeds on the lanes within the easement. It Grantee locates or Grantor notifies Grantee of location of noxcots weeds on the right of -way. Grantee shall iinedentent control procedures before noxious weeds go to seed. Grantee's responsibility for weed control shall be ongoing end shall continue or three (3) years oiler the easement has have ceased to be used by the Grantee for the purposes herrn granted. Such control procedures as set forth above shall at.. the very minimum conform to those established by inn Bureau of Land Management. 6 P:O: .XCLUS[VE, 11Sf. AND RESERVATIOBS. This Agreement and all other ish-s hatch)/ emoted are tint exclusive to Grantee and are iimled to the specific grant hr,. -in This Agreement emen does not, in any way whatsoever, convey any water rights or r.ne, right to use water. Grantor reserves unto itself and its successors and assigns all rights not speci8caliy grantee to Grantee herein. Grantor may grant acrd tional rights-of-way or ears mends on. over, across, under and/or through the Right -of -Way to any third parry for any tenSSC, In -r rs soie ond absolute discretion, so long as such grate does not interfere, whes r tees ecce es rights as tit -ism -thee in this Agreement 7. AGRICULTURAL Li B`- i, f Grantee .cal. take ma - sable precautions to avoid coinage io agriculture- operations an or adjacent to the easement. Granee shah have and ass -urns liability foto . cattle crops. or :Matte ,est as a t C _-O Ir. c -f Grantee. s operations on the Subject Linde. ft. LOGAt SP-CEPS/IIA T3ITAT IsIABILITY. Grantee id alt rat^and assismes..abl,hat FL c r ererl species, p tileCICSispeeies, Itr J eabitar and F.io-d, i. rsity damaged Ci des'ioseil as a result of Grantee's operations on the Silt/Mei Lands. O chip nfitRAt, 4.6113 lir PA (.EOL', OLOGICAL RESOURCES: Grantee is to engem the sernees ri 9tlitUfkII tescuice specialist to conduct sacultural resource inventory of the area w_d surface disturbance following the eldeit' s of the i3 dreau of Lane Management. Any pro all resources c,- ilrvei nr ed shah be delivered to the Grantor ?tJCrc FTT I AND cf'pyTP A?C' 3D 512 C r 0. L1ABI LI l' e OF ti -ill PART S: Grantee covenants and agrees to fully- defend_ protect_ indemnity and hold harmless Grantor, its officers_ directors. employees and agents_ tient and against each and every claim, demand or cause of action and liability. cost tied expense (including but not limited to reasonable attorney's fees and costs incurred in defense of Grantor. its officers, directors, employees and/or agents), for damage or loss in eanxcecr there -with, which may he made a' asserted by Grantee. Grantee's officers, directors. partners. members, employees and/or agents. or which may he asserted ht any third party (including hut not limited to Grantor's officers, directors, employees and/or agents), on account of personal injury or death or property damage caused by Grantee's use of the Subject Lands or the rights granted hereunder, except to the extent such damage or injury results from the actions of Grantor, its contractors, agents or assigns, Whore personal Injury, death. or loss of or damage to property is the result of the joint actions of Grantor or Grantee, Grantee's duty of indemnification shall be in proportion to its allocable share or such action. It is express!) agreed that the indemnity obligation speciiical!y includes, hut is not (farted to, claims arising under the provisions herein entitled Agricultural Liability above. and all federal laws and regulations including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S. C.A. &9601 et. seq. and amendments, Resources Conservation and Recovery Act, 42 U.S.C.A. &6901 et. seq. and amendments. Safe Water Drinking Act, 42 U.S.C.A. 300fet. seq. and amendments. Tox1e Substances Control Act. 15 U.S.C.A. &2601 et. seq. and amendments. Clean Water Act, 33 G S.G.A. &I25 I ei. seq. and its amendments, Clean Air Act, 42 U.S.C.A. & 7401 and amendments. Natural Gas Pipeline Act, 49 U.S.C.A. 1671 et. seq. and amendments. I ltvardous Liquid Pipeline Safety Act, 49 U.S.C.A. 2001 et. seq. and amendments, and all state and local environment laws, rules, and regulations. Neither party shall be liable to the other for any damages due to fire. earthquake, flood. windstorm and other like casually or other causes beyond its reasonable control_ nor for damages caused by public improvements or condemnation proceedings. Notwithstanding die torcgoing. neither party shall be required to settle a labor dispute against its will 11. LAWS. RULES, AND REGULATIONS: Grantee shall at its sole expense comply with all federal laws and regulations as well as those of the State of Colorado and any other governmental authority having jurisdiction over Grantee's activities on the Subject Lands. Grantee shall deliver to Grantor copies of all permits, and cultural, botanical. and wildlife reports covering Grantor's land and adjoining Bureau of band Management land 12. DRUGS, ALCOHOL AND FIREARMS: Grantee shall not allow the use, possession, transfer. purchase or sale of illegal: drugs, narcotics, or other unlawild substances and rnaterials by Grantee or its contractors. sub -contractors, agents, white on the Subject Lands or adjacent lands. The use, possession, transfer, purchase or sate of alcoholic beverages. firearms and other weapons upon the Subject Lands or adjacent lands is absolutelt prohibited 13. I ILN'f1NG AND IS] IING: No hunting, trapping or fishing is permitted on the Subject (..ands or adjacent lands and no such rights are granted by this Agreement tt WATER ;That RIC H L S NW. CONVEYED: This Agreement does not, in any way whatsoever. convey to Grantee any water rights or the right to use water found on. under or appurtenant to the Subject Lands. 5. WA tt:iZ AND DRAINAGE- Grantee shall hate and hereby assumes absc: jure liability for damages tc water wells, water tables, natural springs, running watercourses. and wager tanks u ithin 330 of the center line of the right -or -way insofar as damage can reasonahl.' be determined to he the result of Grantee's opera' -tions 16 ACCESS '10 PIP61.INl'i: Grantee agrees to install a tap on said pipeline in RJt Ilona:location; Grantee agree,to -seep+r is gas at the tap on a best e`fots baso. Grantor's _ .aline qr li }. Grantee and Grantor shalt negotiate a' a . t! cries and oroccssing agreement st r no: in exceed the t'U:1V:fl LANt) COMPANY 4 at6 :a=} 2008 1„ t r ether thud pa 17 NO I ICE Any notice or written demand to be amen to Grantor or Grantee may he celicered in person. by thy or certified or registered mall, postage prepaid. addressed to the party for whom intended. Notice shall be deemed given upon reccipr Puckett and Company Ann: Ray Anderson 5460 S. Quebec St.. Suite 250 Greenwood Village, CO 801 I 1 Phone: 303-773-1094 Fax' 303-773-1157 FTC' Canyon Pipeline, LLC Attn: Art Smith 1600 Broadway, Suite 1900 Denver.Colorado 80202 Phone: 720-225-4000 Fax: 303-861-4761 18. TERM: This Agreement shall remain 111 effect for a primary term ending December 3 I . 2009, and for so long thereafter as Grantee is using the Easement for the purposes described above. Ir1 after this primary tem., operations for the transportation anemia' gas cease for a period of more than twenty-four (24) consecutive months, then such operations shall be deemed not to he conducted and this Agreement shall terminate, except when non- use is caused by acts or circumstances beyond the control of Grantee. Grantor may terminate tins Agreement at any Time after the end of the primary term by giving at least Inels e (12) months written notice thereof to Grantee. Following termination of the Agreement. it shall be Grantee's obligation to restore and reclaim all land affected by Grantee's activities to the extent required by applicable law or regulation established by the 13ureau of land Management or to its equivalent prior condition (ordinary near and tear expected). whichever is greater, including, but net limited to, the removal of facilities. 19. GOVERNING LAW- This Agreement and all matters pertaining hereto, including, but not limited to, matters of performance, non-performance, breach, remedies, procedures, rights. duties, and interpretation or construction, shall be governed and determined by the laws of the State of Colorado. 20. &MISCI'l.1 , AN'-:etIS: This Agreement contains the entire agreement between Grantor and Grantee and any prior oral representations or understanding concerning this Agreement or its subject matter shall he of no force and affect. This Agreement Is subject to all contracts, leases, liens, casements and encumbrances or claims of title, which may affect the Subject Lands, and nothing contained herein s_tni l be construed as a covenant or warranty against the existence of any thereof. The terms and provisions of this Agreement shall extend to and be binding upon the parties, their respective heirs, successors, legal representatives and third party assigns. should Grantor consent to such third party assignments. Notwithstanding anything in this Agreement to the contrary. upon written notice, Grantee shall have the right, in its sole discretion, to assign this Agreement to any of its affiliates or subsidiaries, with the provision that such written notice shall require Grantors consent 21 MEMOR\NDUM OF EASEMENT AND RIGI IT -OF -Ax. AY: Grantee shall cause to be filled of record a fully executed and acknowledged original Memorandum of liaserncni and Right -of -Was-, in a form reasonah y acceptable to Grantor and Grantee, and shall promptly provide to Grantor a recorded copy thereof. Such Memorandum shall be recorded in the appropriate real property records of the county in which the Subject Lands are Incited. IN W. :h.SS St': F;R FOE, the parties have executed this Easement and Right-of-Way Agreeliahlt ' ne day and von:' :nd°r ated below but effective an the date first set Forth aboye- PUC<LT LAND CO 41 3'25.2008 GRANTOR: PECK ETT LAND COMPANY Bic ,Mattheyy A. V;'onzbache_ President GPANT_EE: LTC CANYON PIPELINE, EEC Date: By: Arthur Smith ..auger of Engneering Projects Date. ACKNOWLEDGEMENTS STATE OP L ;ss COUNTY OF f1.c,+,roN,e:_. Before me. on this < T.- day of trr- r „_ __ _ . 2008. the foregoing instrument was executed by Matthew A. Pour zea her known to me to be the duly authori.ed President of Puckett Land Company. Granter, and acknowledged said execution to he the signer's free and voluntary act and deed on behalf of said Grantor, for the uses and purposes therein set forth. Witness my hand and official seal. '✓lv Commission Expires. S FATE Of COUNT OF CArlq )ss RAYMOND .s. ANDERSON n,iVdelV' nue'. COLosax) `Ny Camntwts Eeprb Betore me, on This day of . 2005. the P regoing instrument was executed by Art S'..n`th known to me to be the duly aethori?ecd Manager of Engineering—Projects Por ETC Canyon Pipeline. LLC. Grantee, and acknowledged said execution to he the sign's free and voluntary ct and deed on behalf of said Grantee ,>:' the uses and purposes therein set forth. Witnessmy hand and of iciai seal. Y1y Commission Expires: NICKCTl 5'25.2008 Ni) COMPANY No 1' Public -. LEGEND F ' PU9L`C. LAND SGRf o 9000:79 IL 0 ANGLE ^DAT � C.9 ^::b' 0: 6E::NNfri6 I aDr r=3x: o: eaDsc S=:/4 911.4 SECT;OI.'3 i6S=saW Cwoe' PICKET! keno) CO (BOX) 9 :)500 CORPOWA. IO.N le 022 '/83x5"1r 9W 299. 239 7091 _ s :on 26 R0,53:5 aon 3535 \Yo 39 9`Y P05e• $55t3 4PW. < 55 l 1 9fl �`-W.iems iC 55294 21lY Y5 sJ- \ Imo/ Wel: Pod 54fle 541V 03 Owner :0;505 LAN) TO ;505; & d IROS^.0 CORP 1409,' See Demi 0J'4r's p Pipeline gams Poe r Pod N--'Cen terrine of Proposed Pipet/se (Nor lo Scale) riencei l2 NI. ETC Canyon Pipeline LLC bn AS SHOWN I 441 /Z08 DRAIN BY Cr Ic+TE Damn 3/05/08 `Pxr_a nuvc_rr 07-1 -06 DESCT➢ON P.J._ 504 f0 DIN 0E20919E P PE_ NE ACROSS DUCKETT 1 AND COMPANY (50%) & TOSCO CCRPCRA110N 140%) =CAS 25. 26. 34, & 35, f6S. R95W.. CANE''LID COUNTY, CO_CRAOD ISAICH RVYV £95004: 5HFET RVEYIITG Ja MA NG [VANClO w 100941 I EXHIBIT A uvEY!nc 0/) 749-4545rOIl 3 LEGEND t] PU.L:6 LANE SUN v: CCENS.V O REEL L .c -;n P08 Royrr Or DGGAN:NG _ POINT 0E 'NEN!: Sec' on 2 -V S,PPY55'7O7, 250555 _j Genierllne of Proposed Pipe/ine a.Ih/Ac _ L,L \PAC' CS - N 0 0 l7 O UCKELr i AN'^. ...0 WV 3 LOSCC ERRE (4O7, Pre. y Li ny n -e o::e ,Vco, Cc.o or 'ry 34 5EAKETE .i: e 200 Acres ry IO•'-', oV_Ecru LANE, co (505)I R iO500Co4PO,2n LION (405) LET ETC Canyon Pipeline LLC S85'J5 1^ E. 26:7 97 5E5541,55r. e.ri Isom !O f N q R4'RISC PP=LINE ACROSS PUCCIT ,AND COMPANY (605) & TOSCO CCRPCRAIION (43%) SEC T'ONS 25. 26. 34, & 35 [65 495W. CAR -ILO COUNT-, COI Can.O ,cALL •+srov r As SFoar1 �. SOS DRAWN e+ a:: VA IF ,)en'nu 3/05/08 Icm,rcr w�.`es - - 11 — - ni pew <Sn TCr SVR rnv ESSERA S _ 3I II' .' „5 EXtt BTt A 2of_ ('� ATC2'� 30 6 MAN SURE I t VASS:INC flY:2C: I SURVEYING 3 )) J, us .,-..TARE. �...�xnr sENAAA. LEGAL DESCRIPTION A pipeline right -or -way located in the 5W1/4 SW 1/4 of Section 25, the SE1R 5E1/4 of Section 26, the 51/2 of Soctbn 34, end Section 35, 765, R95W 6Th P.M, Garfield County, Colorado, The centerline or said right -o( -way temp more particularly described as follows: Commencing at the Southwest Corner of said Section 25 and running thence S 86'44'16° 6, 1102.14 feet along the south line thereof, thence N 01°15'44° c, 1027.81 feet, more or less, to he POINT OF BEGINNING; Thence N 50°08'55'W, 312.62 feet; thence S 50°51'09' W, 1132.55 feet to e point lying on the East line of said Section 26, said point tying N 00'43'34"E, 486.65 feel from Na .southeast corner thereof thence continuing 550`51'09°W, 407.27 feet; thence S 79'19'53' W, 74.22 feet; (hence S 57'45'07"W 236.29 feet; thence S 85'19'09' W, 563.91 reek thence S 55°03'41"W, 3568 feet to a point tying on the north line of said Section 35, said point lying N 88`46'09° W, 1173-98 feet from the northeast corner Thereof; Thence continuing S 55'03'41' W, 448.65 feet; thence 553'4848' W, 79690 feet; thence S 62'24'222' 'W, 95133 feet, thence 53°4119"141, 126.30 feet; thence S 47°1554°W, 143.43 feet; thence S 53°31'55' W, 1158.45 feet; thence S 53°30'03' W 7035 teen thence S 79'34'44"W 218.85 feet; thence S 53°2834'W, 178.63 feet; thence S 58°22'26' W. 293.05 feet; thence S 56°16'34"W 128.72 feet thence S 26'46'09" W, 591.20 feet' thence S 58'49'43' W 1129.58 feel; thence S 74"54'47" W, 30.20 feet to a point lying on the East line of said Section 34, N 00°37'53' £, 2144.44 feet from the southeast corner merest thence continuing S 74'54'47'W 604.85 feel; thence S 83'33'47' W, 256.14 feet; Unice S 6412746'W, 891.35 feet; Thence N 63'21'16'W 1030.60 feet: thence S 53°16'29' W. 811.85 feet thence 584'4700" W 200.08 feet to the POINT OF ENDING, said point lying cn the Southerly bank of We Wilcox Canal, N 44'5801'E. 2493.62 feet from the Southwest corner of said Section 34. Said centerline being 1196034 feel In leash. The base bearing for this survey being S 00°41'24' W 2748.13 feet between found monuments el the Northeast corner and The East One -Quarter corner of said Section 35. RIGHT-OF-WAY LIMITS BOX Reference Points Work Space Wore Scoce Right RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL _ _ Sec 25, TES 895W 144517 PUCKETT LAND COMPANY ICC N)' Sec. 26. T65 1255,N 1317.37 6 - 119660."34 TOSCO CORPORATION (DJ %) Sec 34 T85 4295W 3799 86 Sec 35. T55 895W 5402 94 Total :1196034 ETC Canyon Pipeline LLC AS SI Ott! 1;117/O i L tBoc ^_.V CJ' IA'I nO4844 3/05/08 Hal 747413ER 07-j)-06 BASIS OF DARING The base bearing for this survey is S 00°41'24` W, 2742.13 feet between found monuments at the Northeast Corner and the East One -Quarter Corner of Section 35, T6S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruits, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CESCRIE909' RI!I. iSCN '0 EN IER-'RISE PIPELIN-_ ACROSS=uC(CT" Vit) COMPANY (EC%) & TOSCO CCRP3RATICN (40%) SEC IIONS 25, 26, 34, & .35, TES. R95W, GARrIEL7 COL' TT, COLSRAC-3 Wale ie T of5r1Ac '_.. , 910 MAIN C C ANS-^• 4Y 821 }U EXHIBIT A G hal 789- 4515 MEMORANDUM OF EASEMENT AND RICHT-OF-WAY AGREE, irNT This MMEMORANOLvI OE EASEMENT AND RIGHT-OF-WAY AGR"F,MENT (the 'Memorandum ) is Mil& ;ir:d exeechd as of the PFz: day of 1' r 2008 to evidence that The Easement And Right -of -Wore Agreement (the "Agreement) dated ,_t.'da; of 2005 sue entered into by and between Puckett Land Com O, znv (the "Surface Owners"; and FTC Canyon Pipeline, LLC, 1600 Broadway, Suite 1900, Denver Colorado 80202 (the "O)eralor'). ehich. among other provisions, provides as follons_ :be Surface Owner also agreed to 16c following (eons and condtions in the Agreement. Surface Owner agreed Operator may construct. ley, maintain_ modify. operate, alter, replace. remove lite New Pipeline depicted on Exhibit "A h at:ached hereto and made a pan hereof. "!his Memorandum shall be construed as a covenant running with the i.anda and shall be binding on any and all personal representatives, successors, and assigns of Surface Owner and Operator - [his td en'urardem is being executed by Surface Owner and Operator fon the primary purpose of recording and thus advising ail interested parties of the es istence and saGdig of such Easement And Riaht-of-Way Agreement, the exact terms and conditions of svh;ch are more fail) staled in the unrecorded instrument on die with the respective panics and, that this Memorandum shall constitute notice to all parties of the existence of (Ins Agree;e cot on though it v. as described in total detail herein. IN WITNESS WI'4ER LOF, the panes have executed this Mietnorandtan as of the date first above ooritien Oar acv By: kf u;> etu C, !''--R+rn! ,if President ETC Canyoa Pipe;ines, LLC )i „L_i�r t, :!. t, Arthur Suitt,, Manager of Fr. gi::,.. - Prejeca ACKNOWLEDGEMENTS COUNTY OF it ss STATE OP COLORADO Before me, on this „ thy of =tip arrn,-,y , 2008, the foregoing instrument was executed -4e4=e4rY. P,.ekt: 24a'..n;.' ii. L L-,.),tem74 y,.;.:. known to me to be the duty authorized President of Puckett Land Company, Grantor, and acknowledged said execution to ba the signer's free and voluntary act and deed on behalf of said Grantor, for the uses and purposes therein set forth Witness: y hand and official seal My comion e COUNTY OF - 1 ss STATE OF COLORADO ublic ft YMONu a AND8H,SCNi6 "NCITAk`! N00tOtt' • 60_Onacro 'fry Com: n!co':+ 6pre9 04N41/24.3 Before me. on this day of , 2008, tt}e foregoing Instrument was executed by Arthur Smith known to me to be as Man._er of Engincer:-g - Projects for ETC' Canyon Pipeline LLC, Grantee. 1 and a i owledg d said execution to be the signer's free and voluntary ant and deed onbehalf o`. said Grant se, for the uses and purposes therein set forth Witness my hand and official seal Tdoiary Public My cotnmisstan VU*R t 3)5 3000, CDAKEne 00,0:FO,I 00 P 360 CF sr30?6133'; CE . ...1 0' D.J.vs 5E00 S_20 690"2101.5 35.:Yi.. Crrrc PVCCIIN L.5350 CC. (E0% 5 TOSCO CGi'O9AION (+Q;) ie'46 J9 %+. 270399.serl:e-: 26 n: 5j. \-553 3 955 05 2703 99' .N88'<5`J0_L+ P.055 552032" 550)83003K 39 Cerner/,/ e 0% Proposer WPeiiOc .3 Prod �._ DESCAPIION 9ULISON 70 EN (3./5 50 R PIC C55i rnion 01 -(5 ',CROSS J RSU LA - COIPAMY (69,%) & TOSCO COR=CRATI_ON (4oN !SEC IONS 25 20 3 k 35. IS K9>'.' G,‘ -1F .EL: CO_v I•, C0L ;AC0 4s/ 17/08 j C155555' P+I Llv_ c.I 115 r Fiat+m 3/05/08 10200:C3 Iauacxe 0/ 11 05 SI -F=T r S 455.TCF U 3' 09 ASS02I5 IES 900. 2ae S NEI: e5 'n• 2. SiC! 950 FFZ�}-ildrre (301) _ _=5a_ 3( _ J res rag, r; 9CO.a::.,, 586'55a1C"E. 95505 55 Nl w8A 5t9 N 0,r, C Cen;ei' :e of ProcosVd Pip_Hine ;Sopfris (SG, tkely \ Cosa:) /As rodeo, CC o:)) ononu5 '7cll PP {' :CO (50£) n io5CC CORP (!O$, FEW D dve.. ✓':C:i LI LADD CO (aoz)I TOSCO CORPORA�]D (Jog) •v69'•724 26179' 0835µ}5215?79 �DESCRP IDs. R'JLIS N TO ENP.N R r PIPELI\E ACROSS PUCKS "I LAND COMPANY (60%) ; *0SC0 CORPORA" CO (406)i ISCru 's 25, 25 3 35. TCS 795.. GARHE 0 COUNTS, COECRYOC,� Sn. n< _SSOCI. 5 i SHOE DOD An STRES! EV•NS-r m,S 3 LYri i , 17) rta Sae - L Ci < 4 7 /05 00004 C'. LT DA TE DRA:n 3/05/08 I Poo1.CL MJ.:BEP 07 i - 31C rrir- :i,cir=r- -01 r. 'OLD I. SIAN/4 o r/r.f 930r-- 25,vs 601/a SE. U4 of Ser^'^ 28, gra 5112 of Ss.^.;ion 34, 90(.1.5.4T'.? -3 5.5, ro3, f198W 67-1 a g;. Garrcid County _ol d Y _ - ,: -o=rld Ffght-or,,ay bring o.rr_ ,rti described a ,enrng ai thy SouTaesi,4crosr of ace _45,'X725 art urarc e 588'44'15 E 110214 +ea along Ts sorts, ?hie;,erauf, ?!SB IF 0;'1524'F, 102:.81 feel , .':o or les, to IS' PO/N: C' 1/201NNG!G, menta 550"0365"VV. 3?2.6208(.11.2106353°5159"W 1*32.5sfte"os pofnr iy^9 on the Earl line :n ,. c, lying N CO'4334'00, 483.65 feat from The southeast CrRKMaroc' fiance continuing S 50'5/'29' 121, 407.27 few; crams S; L' /553' VS 74.22 •ka±: he -3557°45'07.W2.B_£€reef inence. S 851,_.'°7/.:16351 fee': m9ros S55°03'c I' ‘41, 35.66 feet le tru Aor; on me :crthr of said Seoficn 35sufri troirdl `7588"460 N 1 4-8 Thrrth-.c sect cr' t! srce condr:'r: S 55'0341'77 440.8.5 leer +h=^re S 53"4a28" R'. 781.9ofeer t ^6 832'24'22',v 55.&94e( lh,,;res.853'41'1T vV,, 126.30 &a-; thecae P 47°:.51' b'✓, 143.1313st 6,323e S a3 3 5r 141 1158.45 iter; Ih nae S 53'30'03"W 70.3515-9 579":34'4-1"N 1855r thenen 8 -M 176.8 S 5P'2226" W. 293.051f menta S 56°1-71." 'Vii 128.72 "_et; .26°49'09'w, 91 20 feat; E8,41N3 n. 1129.58 S Memos S] r ra 3020 ret 43 6 rcf3,`iyin9 so the a, fine of n 34. N 00°37'53' 24414 ex:: s! COTO&.ret, thence cw6nu 5 S 74'54'47 W, 601.65 `a' /i e.,,.s 5 £21253'47' Vv 256.14 feet: ;nonue 584°27'40' 7 1;11.35 f==': +3 -ss 56321'16' N 1080.00teem rhe^re 553'15529' 71, a•1.85 fee; ,ranee S84'4740"W,, 20000 tet 'c the POINT OF El 10. ssior ooin, bs.0-^ +y 1331 of I;o WilcoxC3331 bi.14°1 t, 24.92.82-31Th.„F, j..r.'h.:.c-r corrin C' ?'i.',S.c,-.i::4. :2L'ce' I'IS '1911961.E nu[:. rueter,iino For ih's sry e ':7I 5' O9'4i 24' 51, r^C rnrn nL nI",-',•rOe7Si1,. e;srd lite test T..3-ee4cr, F,ICF OF= 3fe Lliv: S SOX flrencs Points 1.75,1 Socca 3th Succe Le 'i Pi hl ro RIG; IT -OP's VAS LENGTHS 1'(WINE R SECTION Pe. TOTAL So 25 51592544 ill.. 17 pueNET, LAND CO,,PAN`, 00%) sec 26165 R9551 u'i: 3., 1155934 315COOORP02a11011(r 0%) Sec 31. 038 095V1 ;•75..8`0 Sec 35, 163 59519 5‘,07 Iblal 11360. Li ✓I RE AR rg ME boss. be 9rig this stir cl ie S00)011%5 W 2718.13 `O.atd 1':..n,. gig isd,nontitr , a9 the Northeast Corner and the East One-Qua/1g:- Ger" Oi of Scotian T66, R94ta7, - r< TrIF C-`' TE OF Sufi' l Ted 1 eggan og Prune, ColeggIdo hereby earthy that this map woe mads ^m notes taker during an a0insl survey mads by me or under •m, rfrec:iro Thr ETC Carryon Pipeline LLC and that the rI-S rite of which ere car eptly S/75'n hereon. of r,. 3u: 5O1 TO ENTERPRISE PPfLIV C(- .IIL'OTS t')fl-_;,fir LLC k R„5S 'ufsE r I I :O..rn (CC%) '.0c O tOE 0RAT04 1102; SECTIONS 25, 2`. ,`.t, Ye 35, T65. '7359/, GARFIELD COUNTY. COLORADO' 7141• 7 / / /or; re e C41- rA DRAWN „� "�l� dal[37'- uaeFv Q7-' !6• < w 5,'Irq!p N .3570'5W sae vete ;-set [v<asc, :r+ 82930E..X.H. Fi1'i' A Imo': (1000 159 -:S'S PIPELINE EASEMENT AGREEMENT THIS PIPELINE EASEMENT AGREEMENT ("Agreement") is effective the ,;?3 day of September, 2008, by and between Samuel and Teresa Potter ("Grantor"), and ETC CANYON PIPELINE, LLC, a Colorado limited liability company whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202 ("Grantee"). RECITALS A. Grantor owns the surface of the real property in Garfield County, Colorado (the "Property"), legally described as: Township 6 South, Range 95 West, 6th P.M. Section 36: NW1/4SE1/4, SW1/4NE1/4, NE1/4NW1/4 Section 25: SE1/4SW1/4 B. Grantee wishes to construct a pipeline beneath the surface of the Property in accordance with the terms of this Agreement. TERMS THEREFORE, in consideration of the mutual covenants in this Agreement, and Grantee's agreement to pay the damages described in this Agreement, the parties agree as follows: 1. Grant. Grantor grants to Grantee a non-exclusive pipeline easement ("Easement"), fifteen (15) feet in width across the Property at the location described on and depicted on Exhibit A, to construct, operate, maintain, inspect, and repair one pipeline and associated above and below ground valves, cathodic protection equipment, and pipeline markers. The pipeline shall run approximately five (5) feet from and parallel to the pipeline on the Property owed by Williams Companies, Inc. The pipeline shall be no larger than 24 inches in diameter and shall be for the sole purpose of transporting natural gas. Grantor also grants to Grantee a license for the use of 30 feet parallel to and adjoining the northeast side of the Easement as appropriate for temporary use during the initial installation of the pipeline, and a license for use of two (2) acres as depicted on Exhibit A for a work area for temporary use during the initial installation of the pipeline. 2. Consideration. Upon execution of this Agreement, Grantee shall pay Grantor $57,600 prior to the initial construction of the pipeline. Except as otherwise provided in this Agreement, such payment shall constitute payment in full by Grantee for all reasonable damages to the Property associated with the construction, operation, maintenance, inspection, and repair of the pipeline within the Easement. This paragraph may be redacted by Grantee to exclude the dollar amount prior to recording. 3. Construction. 3.1. Grantee shall provide written notice to Grantor at least two (2) weeks prior to any construction or installation under this Section 3. 3.2. Grantee shall bury the pipeline within the Easement at a depth not less than forty-eight (48) inches, so as to not interfere with cultivation of soil or other surface uses. 3.3. Grantee shall immediately repair any roadway crossings and fences on or enclosing the Property that is damaged or temporarily taken down during any construction on or use of the Easement. When accesses or leaving the Property, or portions of the Property through fences, Grantee shall insure that gates are left in the position as they are found, i.e. either open or closed. Grantee shall coordinate access and operations with tenants of the Property, if any, on a daily basis or as frequent as possible. 3.4. Grantee shall immediately restore or repair any irrigation or spring collection system ditch or pipeline that is damaged during any construction on or use of the Easement by Grantee so that the delivery of water on the Property is not disrupted. 3.5 No living mature trees shall be damaged or removed. Any rocks excavated by Grantee that are too large (4" or greater) to be incorporated into fill shall be removed or piled at the direction of Grantor. Any usable timber, fence posts, and firewood larger than 4" in diameter shall be stockpiled at mutually agreed locations. All slash shall be incorporated in fill or removed. 3.6 Grantee shall cease construction operations in excessively muddy conditions. All construction vehicles, equipment, and materials, while not in use, shall be parked or placed in the Easement or off of the Property. No construction equipment repair or maintenance shall occur on the Easement or the Property, including but not limited to the changing of motor fluids. Easement shall be kept free of litter and debris caused as a result of Grantee's activities at all times. 3.7 Grantee shall provide Grantor with "as -built" survey of the pipeline after construction. It shall be the Grantee's responsibility to record necessary documents in Garfield County, and to provide the Grantor with a copy of any recorded documents. 4. Grantee's Operations. During installation of the pipeline within the Easement, and at all times thereafter, Grantee shall minimize disruption of, and interference with, any ranching, agriculture, or other operations conducted on the Property now or in the future. No firearms, pets, alcohol, illegal drugs, camping, recreating, hunting, or any other non -pipeline related activities are permissible at any time on the Easement or the Property by Grantee. 2 5. Directional Bore. 5.1. All drilling fluids and mud shall be handled in accordance with COGCC regulations. No off-site fluids, mud, soil, water or other substances shall be deposited on the Property. 5.2 The directional bore site shall not be located on the Property, but a temporary work space as set forth above may be used to facilitate the directional bore process. 5.3 No reserve or drilling pits shall be constructed or used on the Property. 6. Reclamation. Within 120 days after installation of the pipeline within the Easement, or any maintenance or repair of the pipeline that disturbs the surface of the Property, Grantee shall restore any affected area to its approximate pre -disturbance topography and re- seed all such areas with appropriate native grasses for ground cover and erosion control with either BLM seed mix or the seed-type(s) selected by Grantor. Grantee shall be responsible for controlling all noxious weeds on any reclaimed area until the termination of the Easement. Grantee shall insure a naturally contoured surface over the Easement. 7. Compliance with Law. Grantee, its agents, designees, assignees and successors - in -interest shall, in connection with the use of the Easement, comply with all applicable federal, state and local laws, rules and regulations applicable to Grantee's use of the Easement, including, by way of example and not limitation, the common law and all other laws designed to protect the environment and public health or welfare. 8. No Other Facilities. Nothing in this Agreement shall be construed as granting Grantee the right to place any additional pipeline or other facilities on the Property other than the one pipeline to be installed in the Easement. No compressor units or stations, processing plants, evaporation ponds or other similar facilities of any kind shall be located on the Property. 9. Term of Grant. The Easement shall continue until: (i) the parties' mutual, written agreement to terminate this Agreement, (ii) Grantee's written surrender of the Easement, or (iii) non-use or abandonment of the pipeline or Easement for a period of more than two (2) years. Upon termination or surrender of the rights granted under this Agreement, Grantee shall execute and deliver to Grantor, within thirty (30) days of written demand therefor, an acknowledgment that this Agreement has been terminated. 10. Liability of Grantee. Grantee shall be liable for any injury to persons, property, or livestock caused by or incident to the operations of Grantee, its agents, employees, contractors, or subcontractors on the Property, or any extraordinary damages due to spills of materials, explosions, or any other harmful activity of Grantee. Grantee shall indemnify and hold harmless Grantor from and against any and all liability, damages, costs, expenses, fines, penalties and fees (including without limitation reasonable attorney and consultant fees) incurred by or asserted against Grantor arising from or regarding or relating to (i) the operations of 3 Grantee, its agents, employees, contractors, or subcontractors on the Property or (ii) any other rights granted by this Agreement. Such indemnification shall extend to and encompass, but shall not be limited to, all claims, demands, actions or other matters which arise under the common law or other laws designed to protect the environment and public health or welfare. Grantee shall, at Grantor's option, defend Grantor or reimburse Grantor as expenses are incurred for Grantor's defense against any claims, demands, actions, or other matters, whether brought or asserted by federal, state, or local governmental bodies or officials, or by private persons, which are asserted pursuant to or brought under any such laws relative to the rights granted by this Agreement. All of Grantee's obligations stated in this Section 9 shall survive termination of this Agreement. 11. Insurance. Grantee shall keep its operations insured, or comply with applicable self-insurance laws and regulations, for automobile, liability, and workmen's compensation insurance, and for any damages incurred on the Property. 12. Grantee Liens. Grantee shall, at its sole expense, keep the Property free and clear of all liens and encumbrances resulting from Grantee's and its agents' activities on the Property, and shall indemnify and hold harmless Grantor from and against any and all liens, claims, demands, costs, and expenses, including, without limitation, attorney fees and court costs, in connection with or arising out of any work done, labor performed, or materials furnished. 13. No Warranty of Title. This Agreement is made subject to any and all existing easements, rights-of-way, liens, agreements, burdens, encumbrances, restrictions, and defects in title affecting the Property. Grantor does not in any way warrant or guarantee title to the Property. 14. Non -Exclusive Use and Reservations. All rights granted in this Agreement are limited to the specific grants described in this Agreement. Grantor reserves to itself and its successors and assigns all rights not specifically granted to Grantee in this Agreement, including the right to the use and enjoyment of the surface of the Easement so long as such use does not hinder, conflict with, or interfere with Grantee's rights under this Agreement, provided however that no reservoir, excavation, or structure shall be constructed or permitted on, over, or within the Easement without the prior written consent of Grantee. Grantor further agrees not to change the grade or otherwise remove dirt from the surface of the Easement without prior written consent of Grantee, unless the grading or dirt removal is consistent with normal agricultural practices in the area. 15. Waiver. The failure of either party to enforce any of its rights under this Agreement upon any occasion shall not be deemed a waiver of such rights on any subsequent occasions. The waiver, either express or implied, by any party of any of the rights, terms or conditions in this Agreement shall not be deemed as or constitute a waiver of any other rights, terms or conditions in this Agreement. Any waiver, in order to be valid and effective, must be in writing. 16. Notice. Wherever provision is made in this Agreement for the giving, service, or delivery of any notice or other instrument, such notice shall be given by: (i) personal delivery, or 4 (ii) United States first class mail, postage prepaid; provided, however, that each party may change that party's mailing address by giving to the other party written notice of change of such address in the manner provided in this Section 15. Mail shall be deemed to have been given, served and delivered upon the third delivery day following the date of the mailing; personal delivery shall be deemed to have been given, served and delivered upon receipt. Written notices shall be mailed to: GRANTOR: GRANTEE: Sam & Teresa Potter ETC Canyon Pipeline, LLC P.O. Box 148 1600 Broadway, Suite 1900 Rifle, CO 81650 Denver, Colorado 80202 17. Survival of Obligations. All obligations, indemnifications, duties, and liabilities undertaken by Grantee under this Agreement shall survive the termination of this Agreement. 18. Merger of Prior Agreements. This Agreement contains the sole and entire agreement and understanding of the parties with respect to its entire subject matter. All prior discussions, negotiations, commitments, and understandings relating to the subjects of this Agreement are merged into it. 19. Amendments. This Agreement may only be amended by the written agreement of both parties. This Agreement cannot be amended orally. 20. Headings. Section headings or captions contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision. 21. Construction. Whenever required by the context of this Agreement, the singular shall include the plural, and vice versa; and the masculine gender shall include the feminine and neuter genders, and vice versa. The provisions of this Agreement have been independently, separately and freely negotiated by the parties as if drafted by both of them. The parties waive any statutory or common law presumption that would serve to have this Agreement construed in favor of or against either party. 22. Applicable Law and Attorney Fees. This Agreement and the rights of the parties under it shall be governed by and interpreted in accordance with the laws of the State of Colorado, by the District Court of Garfield County, Colorado. In the event of a dispute involving or related to any term or condition of this Agreement, the non -breaching party shall be entitled to recover its reasonable costs and attorney fees, including post -judgment collection costs, in addition to actual damages. 23. Heirs, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns. The Easement granted in this Agreement shall run with the land and is not a personal covenant; provided, however, that assignment by Grantee of some or all of its rights hereunder shall not release Grantee from liability under this Agreement, unless specifically released by Grantor in writing. 5 GRANJOR Samuel B. Potter Teresa A. Potter GRANTEE: ETC C ; NYON PIPELINE, LLC y: Title: m. L . S pears STATE OF COLORADO ) ) .ss COUNTY OF GARFIELD ) `Z - sr. Vr,Optry -ins The foregoing instrument was subscribed and sworn to before me on , 2008, Samuel B. Potter and Teresa A. Potter. A ; My commission expires: £— ,25 -// Witness my hand and seal. Notary Public STATE OF COLORADO ) ) .ss COUNTY OF 1- hrtS ) The foregoing instrument was subscribed and sworn to before me on �LLC. 008, by 1''� ' L ' 5Pea • , Authorized Agent of ETC CANYON 1-31FELINE, LLC. Sr. - - r My commission expires: 3) tf I 12-- Witness LWitness my hand and seal. oo 174;N DONNA WALTERS "s Notary Public. State of Texas My Comrfllssion Expires Mwch 04 2012 rc 6 Notary Public / / �� / ( a° ( ko / g NORTH 1/4/ CORNER SECRON 38 CAL�)ED Section 25 N88 52'31 "W, 2565.79' P.O.E. (S00'56'55"W, 158.77') • Owner: G. & L. MAHAFFEY Section 36 Centerline of Proposed Pipeline N50D8'55"W 005.68' NWI/4 NE1/4 SECIKNJ 3B. TCS R95W Owner. POTTER / Existing Pod ( (Palter PA 432-56) / \ N40'77 77"W, 110.87' 2 acre Workspace \--Existing Fence me (typ) l NOS' 8'55"W, 58.72' N50'08'55"W, 91.31' N39'49'51 "W, 73.02' N35'48'21 "W, 86.67' N\ / C Existing Pipelines N3613'16"W, 178.21' ` l Property Line SW//4 NE1/4 SECTION 36, T89 ROY wner. G. MAHAFFE LEGEND 0 PUBLIC LAND SURVEY CORNER 0 ANGLE POINT P.O.B. POINT OF BEGINNING P.O.E. POINT OF ENDING \\ N4O'O5'57"W, 65.15' P.0.6 ' NO2'O8'58"W, 33.78' CORNER TIE NOTE; THE POINT OF BEGINNING BEARS S 4659'16' W, 1977.63 FEET FROM THE NORTHEAST CORNER OF SECTION 36. T65. R95W. NORTHEAST CORNER SECTION 38 ALUMINUM CAP ININ ILLEGIBLE MARKING NE1/4 NE1/4 SECTION34 TBSR95W Owner: POTTER re Existing Rood (t/— 1376' from CR 323 to Proposed Pipeline) Owner: SLAYMAKER ETAL. CLIENT: ETC Canyon Pipeline LLC DESCRIP11ON: RULISON TO ENTERPRISE PIPELINE ACROSS POTTER PROPERTY, SECTION 36, T6S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN 7/25/08 SURVEYED BY: EVISION: DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11 —06 SHEET 1 of 2 WASATCH SURVEYING ASSOCIATES EMU 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXHIBIT A PIPELINE EASEMENT AGREEMENT THIS PIPELINE EASEMENT AGREEMENT ("Agreement") is effective the„ 79 th day of September, 2008, by and between Gary Lee Mahaffey ("Grantor"), and ETC CANYON PIPELINE, LLC, a Colorado limited liability company whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202 ("Grantee"). RECITALS A. Grantor owns the surface of the real property in Garfield County, Colorado (the "Property"), legally described as: Township 6 South, Range 95 West, 6`" P.M. Section 36: NW1/4SE1/4, SW1/4NE1/4, NE1/4NW1/4 Section 25: SE1/4SW1/4 B. Grantee wishes to construct a pipeline beneath the surface of the Property in accordance with the terms of this Agreement. TERMS THEREFORE, in consideration of the mutual covenants in this Agreement, and Grantee's agreement to pay the damages described in this Agreement, the parties agree as follows: 1. Grant. Grantor grants to Grantee a non-exclusive pipeline easement ("Easement"), fifteen (15) feet in width across the Property at the location described on and depicted on Exhibit A, to construct, operate, maintain, inspect, and repair one pipeline and associated above and below ground valves, cathodic protection equipment, and pipeline markers. The pipeline shall be no larger than 24 inches in diameter and shall be for the sole purpose of transporting natural gas. Grantor also grants to Grantee a license for the use of 45 feet parallel to and adjoining one side of the Easement as appropriate for temporary use during the initial installation of the pipeline, and a license for use of two (2) acres as depicted on Exhibit A for a directional bore site for temporary use during the initial installation of the pipeline. The area between points A and B on Exhibit A shall be bored with no disturbance to the existing ditch, fences, or brush. 2. Consideration. Upon execution of this Agreement, Grantee shall pay Grantor pursuant to a separate Payment Agreement that is being executed simultaneously with this Agreement. Except as otherwise provided in this Agreement, such payment shall constitute payment in full by Grantee for all reasonable damages to the Property associated with the construction, operation, maintenance, inspection, and repair of the pipeline within the Easement. 3. Construction. 3.1. Grantee shall provide written notice to Grantor at least two (2) weeks prior to any construction or installation under this Section 3. 3.2. Grantee shall bury the pipeline within the Easement at a depth not less than forty-eight (48) inches, so as to not interfere with cultivation of soil or other surface uses. No above ground structures, including but not limited to valves, meters, and markers, shall be placed in fields unless prior written consent is obtained from Grantor. Grantee may place required markers at fence lines. 3.3. Grantee shall immediately repair any roadway crossings and fences on or enclosing the Property that is damaged or temporarily taken down during any construction on or use of the Easement. When accesses or leaving the Property, or portions of the Property through fences, Grantee shall insure that gates are left in the position as they are found, i.e. either open or closed. Grantee shall coordinate access and operations with tenants of the Property, if any, on a daily basis or as frequent as possible. 3.4. Grantee shall immediately restore or repair any irrigation or spring collection system ditch or pipeline that is damaged during any construction on or use of the Easement by Grantee so that the delivery of water on the Property is not disrupted. 3.5 No living mature trees shall be damaged or removed. Any rocks excavated by Grantee that are too large (4 inches in diameter or greater) to be incorporated into fill shall be removed or piled at the direction of Grantor. Any usable timber, fence posts, and firewood larger than 4 inches in diameter shall be stockpiled at mutually agreed locations by Grantee. All oak brush 2 inches or greater between P.O.B. No. 1 and point A on Exhibit A shall be cut into 15 inch lengths and stacked by Grantee in an area on the Property chosen by Grantor. All other slash shall be incorporated in fill or removed. 3.6 Grantee shall cease construction operations in excessively muddy conditions. All construction vehicles, equipment, and materials, while not in use, shall be parked or placed in the Easement or off of the Property. No construction equipment preventative maintenance shall occur on the Easement or the Property, including but not limited to the changing of motor fluids. Easement shall be kept free of litter and debris caused as a result of Grantee's activities at all times. 3.7 Grantee shall provide Grantor with "as -built" survey of the pipeline after construction. It shall be the Grantee's responsibility to record necessary documents in Garfield County, and to provide the Grantor with a copy of any recorded documents. 4. Grantee's Operations. During installation of the pipeline within the Easement, and at all times thereafter, Grantee shall minimize disruption of, and interference with, any ranching, agriculture, or other operations conducted on the Property now or in the future. No 2 firearms, pets, alcohol, illegal drugs, camping, recreating, hunting, or any other non -pipeline related activities are permissible at any time on the Easement or the Property by Grantee. 5. Directional Bore. 5.1. Grantee shall utilize a closed loop system for drilling. All drilling fluids and mud shall be handled in accordance with COGCC regulations. No off-site fluids, mud, soil, water or other substances shall be deposited on the Property. All fluids, mud, soil, water and other substances used or contaminated as part of the bore process shall be cleaned up and disposed of off the Property. 5.2 The directional bore site shall be appropriately fenced as agreed to by Grantor and Grantee. The fence shall be removed following completion of site reclamation. 5.3 Except as part of the bore process, no reserve or drilling pits shall be constructed or used on the Property. 5.4 Grantee shall have the right to use existing roads on the Property to access water from the Colorado River as necessary for the directional boring process. Any access areas shall be reclaimed at the same time as the directional bore site is reclaimed. 6. Reclamation. After installation of the pipeline within the Easement, or any maintenance or repair of the pipeline that disturbs the surface of the Property, Grantee shall compact all excavated areas and disk the surface within 30 days for hay producing areas and 120 days for all other disturbed areas. Grantee shall restore any affected area to its approximate pre - disturbance topography and prepare and re -seed all such areas with seed mix or the seed-type(s) selected by Grantor and provided by Grantee, including fertilizer, crop seed, and cover. Grantee shall be responsible for controlling all noxious weeds on any reclaimed area until the termination of the Easement. Grantee shall insure a naturally contoured surface over the Easement. 7. Compliance with Law. Grantee, its agents, designees, assignees and successors - in -interest shall, in connection with the use of the Easement, comply with all applicable federal, state and local laws, rules and regulations applicable to Grantee's use of the Easement, including, by way of example and not limitation, the common law and all other laws designed to protect the environment and public health or welfare. 8. No Other Facilities. Nothing in this Agreement shall be construed as granting Grantee the right to place any additional pipeline or other facilities on the Property other than the one pipeline to be installed in the Easement. No compressor units or stations, processing plants, evaporation ponds or other similar facilities of any kind shall be located on the Property. 3 9. Term of Grant. The Easement shall continue until: (i) the parties' mutual, written agreement to terminate this Agreement, (ii) Grantee's written surrender of the Easement, or (iii) non-use or abandonment of the pipeline or Easement for a period of more than two (2) years. Upon termination or surrender of the rights granted under this Agreement, Grantee shall execute and deliver to Grantor, within thirty (30) days of written demand therefor, an acknowledgment that this Agreement has been terminated. 10. Liability of Grantee. Grantee shall be liable for any injury to persons, property, or livestock caused by or incident to the operations of Grantee, its agents, employees, contractors, or subcontractors on the Property, or any extraordinary damages due to spills of materials, explosions, or any other harmful activity of Grantee. Grantee shall indemnify and hold harmless Grantor from and against any and all liability, damages, costs, expenses, fines, penalties and fees (including without limitation reasonable attorney and consultant fees) incurred by or asserted against Grantor arising from or regarding or relating to (i) the operations of Grantee, its agents, employees, contractors, or subcontractors on the Property or (ii) any other rights granted by this Agreement. Such indemnification shall extend to and encompass, but shall not be limited to, all claims, demands, actions or other matters which arise under the common law or other laws designed to protect the environment and public health or welfare. Grantee shall, at Grantor's option, defend Grantor or reimburse Grantor as expenses are incurred for Grantor's defense against any claims, demands, actions, or other matters, whether brought or asserted by federal, state, or local governmental bodies or officials, or by private persons, which are asserted pursuant to or brought under any such laws relative to the rights granted by this Agreement. All of Grantee's obligations stated in this Section 9 shall survive termination of this Agreement. 11. Insurance. Grantee shall keep its operations insured, or comply with applicable self-insurance laws and regulations, for automobile, liability, and workmen's compensation insurance, and for any damages incurred on the Property. 12. Grantee Liens. Grantee shall, at its sole expense, keep the Property free and clear of all liens and encumbrances resulting from Grantee's and its agents' activities on the Property, and shall indemnify and hold harmless Grantor from and against any and all liens, claims, demands, costs, and expenses, including, without limitation, attorney fees and court costs, in connection with or arising out of any work done, labor performed, or materials furnished. 13. No Warranty of Title. This Agreement is made subject to any and all existing easements, rights-of-way, liens, agreements, burdens, encumbrances, restrictions, and defects in title affecting the Property. Grantor does not in any way warrant or guarantee title to the Property. 14. Non -Exclusive Use and Reservations. All rights granted in this Agreement are limited to the specific grants described in this Agreement. Grantor reserves to itself and its successors and assigns all rights not specifically granted to Grantee in this Agreement, including the right to the use and enjoyment of the surface of the Easement so long as such use does not hinder, conflict with, or interfere with Grantee's rights under this Agreement, provided however that no reservoir, excavation, or structure shall be constructed or permitted on, over, or within 4 the Easement without the prior written consent of Grantee. Grantor further agrees not to change the grade or otherwise remove dirt from the surface of the Easement without prior written consent of Grantee, unless the grading or dirt removal is consistent with normal agricultural practices in the area. 15. Waiver. The failure of either party to enforce any of its rights under this Agreement upon any occasion shall not be deemed a waiver of such rights on any subsequent occasions. The waiver, either express or implied, by any party of any of the rights, terms or conditions in this Agreement shall not be deemed as or constitute a waiver of any other rights, terms or conditions in this Agreement. Any waiver, in order to be valid and effective, must be in writing. 16. Notice. Wherever provision is made in this Agreement for the giving, service, or delivery of any notice or other instrument, such notice shall be given by: (i) personal delivery, or (ii) United States first class mail, postage prepaid; provided, however, that each party may change that party's mailing address by giving to the other party written notice of change of such address in the manner provided in this Section 15. Mail shall be deemed to have been given, served and delivered upon the third delivery day following the date of the mailing; personal delivery shall be deemed to have been given, served and delivered upon receipt. Written notices shall be mailed to: GRANTOR: Gary Mahaffey 4947 County Road 309 Parachute, CO 81635 GRANTEE: ETC Canyon Pipeline, LLC 1600 Broadway, Suite 1900 Denver, Colorado 80202 17. Survival of Obligations. All obligations, indemnifications, duties, and liabilities undertaken by Grantee under this Agreement shall survive the termination of this Agreement. 18. Merger of Prior Agreements. This Agreement contains the sole and entire agreement and understanding of the parties with respect to its entire subject matter. All prior discussions, negotiations, commitments, and understandings relating to the subjects of this Agreement are merged into it. 19. Amendments. This Agreement may only be amended by the written agreement of both parties. This Agreement cannot be amended orally. 20. Headings. Section headings or captions contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision. 21. Construction. Whenever required by the context of this Agreement, the singular shall include the plural, and vice versa; and the masculine gender shall include the feminine and neuter genders, and vice versa. The provisions of this Agreement have been independently, separately and freely negotiated by the parties as if drafted by both of them. The parties waive any statutory or common law presumption that would serve to have this Agreement construed in favor of or against either party. 5 22. Applicable Law and Attorney Fees. This Agreement and the rights of the parties under it shall be governed by and interpreted in accordance with the laws of the State of Colorado, by the District Court of Garfield County, Colorado. In the event of a dispute involving or related to any term or condition of this Agreement, the non -breaching party shall be entitled to recover its reasonable costs and attorney fees, including post judgment collection costs, in addition to actual damages. 23. Heirs, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns. The Easement granted in this Agreement shall run with the land and is not a personal covenant; provided, however, that assignment by Grantee of some or all of its rights hereunder shall not release Grantee from liability under this Agreement, unless specifically released by Grantor in writing. GRANTOR: GRANTEE: ETC CANYON PIPELINE, LLC y: Pith Int 1—.512 -WS Title:grproj� Sr VP., Open -a -}t on.5 STATE OF COLORADO ) ) .ss COUNTY OF GARFIELD ) The foregoing instrument was subscribed and sworn to before me on / 7 '/-3 , 2008, Gary Mahaffey. My commission expires: Witness my hand and seal. STATE OF COLORADO ) ) .ss 6 COUNTY OF Psetini S ) �Threisegoin mstrument was subscribed and sworn to before me on " Z, 2008, by m .1"' Seeecr5Authorized Agent of ETC CANYON PIPELINE, LLC. Sr. Iv.p. , 0 fLezrAikibecs ((t My commission expires:3) `I I ( 2— Witness my hand and seal. DONNA WAVERS isit9 •V°%NoMv Copublimmisc, StatesionExpiresof Texas ., •....:': $ Haled 0412012 7 Notary Public i 1/4 Section Line 36 NWI/4 NEI/4 SEGBON 36, TOS R95W Owner: POTTER _Property Line P.O.E. No. 2 NO2'08'58"W, 228.92' N01'57'29"E, 417.18 Owner: G. MAHAFFEY N00'11'09"W, 472.66' Centerline of Proposed Pipeline NO2'40'16"E, 139.76' VJ g1?2i) 546. 5 0 E. N°. II---Center/ine of Existing Pipeline -J N 0 LEGEND PUBLIC LAND SURVEY CORNER O ANGLE POINT P.O.B. POINT OF BEGINNING P.O.E. POINT OF ENDING 1 4 Section Line NO0'55'06"E, 737.55' N11'34'21 "E, 34.46' N41'14'451E, 36.24' N8223'05"E, 436.04' POINT "B" N08'08'15"E, 39.96' P.O.B. No. 2 County Rp° 9 P.O.E. No. 1 ��- N08'O8'15"E, 115.82' POINT "A" N22'10'28"W, 226.87' N25'19'27"W, 142.05' 17'17'20"E, 33.33' P 0.8. No. SW1/4 SEI/4 SECTION 36, TBS R95W Owner. DIAMOND ELK LLC _N89403'17"W, 1835.28' (To P.O.B. No. 2) N2'09'01 "W 2140.78' (TO P.O.B. No. NORTHEAST CORNER SECTION 36 ALUM. CAP WITH ILLEGIBLE MARKING N00'57'07"'E, 2644.7 AST 1/4 CORNER SECTION 36 CALCULATED SOUTHEAST CORNER SEC BON 38 7911/1981 C.LO. BRASS CAP CLIENT: ETC Canyon Pipeline LLC SCALE: REVISION: AS SHOWN I 3/11 /08 SURVEYED BY: WATCH SURVEYING DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS G. MAHAFFEY PROPERTY, SECTION 36, T6S, R95W, GARFIELD COUNTY, COLORADO DRAWN BY: CJT DATE DRAWN: 3/055/08 PROJECT NUMBER: 07-11-06 WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 1 of 2 LEGAL DESCRIPTION A pipeline dghtof-way located in the NW1/4 SE1/4, and the SW1/4 NE1/4 of Section 36, T6S, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-ofway being more particularly described as follows: Commencing at the Southeast Corner of said Section 36 and running thence N 52°091W W, 2140.18 feet to the POINT OF BEGINNING, (the base bearing for this survey being N 00°58'11"E, 2855.13 feet between found monuments at the Southeast Corner and the East One -Quarter Corner of said Section 36); thence N 17°1720"E, 33.33 feet thence N25°1927' W, 142.05 feet thence N 22°10'28"W, 226.87 feet; thence N 08°08'151'E, 115.82 feet to the POINT OF ENDING of this portion of said centerline, said point lying on the Southerly right-of-way line of County Road 309. Also, commencing at the Southeast Corner of said Section 36 and running thence N 00°58'11"E, 1807.18 feet along the East dine thereof, thence N 89°03'17" W, 1835.28 feet to the POINT OF BEGINNING; thence N 08°08'15' if, 39.96 feet thence N 82°23105°E, 436.04 feet; thence N41°1445" E, 36.24 feet; thence N11°3421'E,34.46feet thence N 0005506" E, 737.55 feet; thence N 02°40'16'E, 139.76 feet; thence N 00°11109"W, 472.66 feet; thence N 01°57.29'E, 417.18 feet; thence N 02°08'8' W, 228.92 feet to the POINT OF ENDING, said point lying on the north line of said SW1/4 NE1/4, S 46°59'16" W, 1917.63 feet from the Northeast corner of said Section 36. Said centerline being 3080.85 feet In length. RIGHT-OF-WAY LIMITS BOX PROPERTY OWNER Reference Points FROM TO Work Space Left Work Space Right P.O.B. POINT A 25' 35' POINT A POINT B 30' 30' POINT B P.O.E. 35' 25' RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL G. MAHAFFEY Sec. 36, T6S R95W 3060.85 3060.85 Total 3060.85 BASIS OF BEARING The base bearing for this survey is N 00°581116E, 2655.13 feet between found monuments at the Southeast Corner and the East One -Quarter Corner of Section 36, T6S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruita, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CLIENT ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS G. MAHAFFEY PROPERTY, SECTION 36, T6S, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN REVISION: 3/11/08 DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 SURVEYED BY: rr� WASATCH SURVEYING ASSOCIATES BIM 906 MAIN STREET, EVANSTON, WY 82930 106 WASATCH (307) 789-4545 EXHIBIT A SHEET 2 of 2 O S W z RAILROAD ner: DENVER & RIO GRANDE WESTERN RAILROAD RAILROAD RICHT-OF-WAY (PROPERTY LINE CORNER PE NOWF' THE POINT OF ENDING BEARS N 72'40'37" E, 1774.10 FEET FROM TIlE SOUTHWEST CORNER OF SECTION 25, T65, R95W. EXTRA WORKSPACE (TYP) P.O.E Owner: G. MAHAFFEY PONT A ‘44,1, (2390.16) .a 25 1 Centerline of I ' Proposed Pipeline V I N50'08'55"W, 396.53' NORTH 1/4 CORNER =RCN IS CALCULATED /� • EX/S77NG ROAD (+/-3887' FROM COUNTY ROAD TO PROPOSED PIPELINE) z OD N50"0855"6, 600.00' S88'44'16'E, 25888..26' • Owner, /N50'08'55'W 254,54 G. MAHAFFEY Colorado River / LEGEND PUBLIC LAND SURVEY CORNER 0 ANGLE POINT PO.B, POINT OF BEGINNING P.O.E. POINT OF ENDING t400'S635"W, I 158.77) Section 25 Section 36 S88•52'31 "E, 2565.19' CORNER SECPW x AWWMI CAP NM NIMBID!MON° CLIENT: ETC Canyon Pipeline LLC SCALE: EVISION: AS SHOWN 9/03/08 URVEYED BY: DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS G. MAHAFFEY PROPERTY, SECTION 36 & SECTION 25, T6S, R95W, GARFIELD COUNTY, COLORADO DRAWN BY: CJT DATE DRAWN: 3/05/08 7 EXHIBIT A BTCH _SURVEYING WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 PROJECT NUMBER: 07-11 —06 SHEET 1 of 2 LEGAL DESCRIPTION A pipeline right -of --way located In the NE1/4 WW1/4 of Section 36, and the SEI/4 SW1/4 of Section 25, T65, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commenting at the Northwest Corner of said Section 36 and running thence S 88°44'16'E, 2588.26 feet along the North line thereof, thence S 00°56'55' W, 158.77 feet to the POINT OF BEGINNING; thence N 50°08'55"W, 254.54 feet to a point lying on the South line of said Section 25, said pant lying S 88°44'16'E, 2390.16 feet from the Southwest comer thereof; thence continuing N 50°08'55"W, 306.53 feet to a point to be known as Point "A"; thence continuing N 50°08'55' W, 600.00 feet the POINT OF ENDING, said point lying on the boundary line between G. Mahaffey & Denver & Rio Grande Western Railroad properties, said point also lying N 72°40'37'E, 1774.10 feet from the Southwest corner of said Section 25. Said centerline being 1161.07 feet In length. RIGHT-OF-WAY LIMITS BOX Reference Points FROM TO Extra Work Space Left Work Space Left Work Space Right Extra Work Space Right P.O.B. POINT "A" 0' 30' 30' 0' POINT "A" P.O.E. 70' 30' 30' 70' Extra Work Space = 1.93 Acres RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL G. MAHAFFEY Sec. 36, T6S R95W 254.54 1161.07 Sec. 25, T6S R95W 906.53 Total 1161.07 BASIS OF BEARING The base bearing for this survey is S 88°44'16' E, 2588.26 feet between the Northwest Comer and the North One -Quarter Corner of Section 36, T6S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Fruita, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. CLIENT: ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE PIPELINE ACROSS G. MAHAFFEY PROPERTY, SECTION 36 & SECTION 25, TES, R95W, GARFIELD COUNTY, COLORADO SCALE: AS SHOWN REVISION: 9/03/08 DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 SURVEYED BY: Azcg iitStORVEYING WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 2 of 2 ETC CANYON PIPELINE, LLC 1600 Broadway, Suite 1900 Denver, CO 80202 May 20, 2008 NOTICE OF INTENT TO ACQUIRE AND FINAL OFFER TO PURCHASE VIA HAND DELIVERY Diamond Elk, LLC Re: Acquisition of Property Interests by ETC Canyon Pipeline, LLC Dear Diamond Elk, LLC: As we have previously discussed, ETC Canyon Pipeline, LLC ("ETC") proposes to construct and maintain pipelines currently estimated to be approximately 10 miles in length to transport gas or other substances transportable by pipeline through portions of Garfield County ("Project"). Design has progressed to a point that ETC has determined that it intends to acquire certain property interests. A review of public records indicates that it is necessary to acquire from you certain property interests for the Project. Exhibit A contains a legal description of the centerline of the property interests that ETC intends to acquire from you. ETC intends to acquire a permanent easement thirty (30) feet in width consisting of fifteen (15) feet on each side of the centerline described in Exhibit A. The terms of the permanent easement are attached hereto as Exhibit B. ETC intends to acquire a temporary construction easement of an additional thirty (30) feet in width as set forth in Exhibit A (see Right -of -Way Limits Box and references made therein). The terms of the temporary construction easement are included in Exhibit B. The permanent easement and the temporary construction easement described above and in Exhibits A and B are hereafter collectively referred to as "Property Interests." ETC has determined that the acquisition of the Property Interests is necessary for the Project. This letter provides to you ETC's official Notice of Intent to Acquire the Property Interests as well as ETC'S Final Offer pursuant to Colorado Revised Statute § 38-1-121. Notice of Intent to Acquire and Final Offer to Purchase May 20, 2008 Page 2 I have been selected by ETC to assist it with the acquisition of the Property Interests from you. ETC desires to enter into negotiations to purchase the Property Interests. If these negotiations are unsuccessful, ETC may acquire the Property Interests through exercise of it power of eminent domain. It is ETC's policy and obligation to pay just compensation for the acquisition of the Property Interests, as defined in the Colorado Constitution and appropriate Colorado statutes. ETC has retained the services of an independent fee appraiser, Hunsperger & Weston, Ltd., to determine just compensation. Conveyance is to be by written agreement executed between you and ETC. Pursuant to Colorado Revised Statute § 38-1-121, as amended, (copy enclosed as Exhibit C), you are entitled to obtain one appraisal from an appraiser of your choosing. ETC will pay the reasonable costs for your appraisal, provided: 1. The appraisal is made using sound, fair and recognized appraisal practices consistent with law. 2. Three copies of your appraisal are submitted to ETC along with the appraiser's invoice, within 90 days from your receipt of this notice. It is not required that you obtain such an appraisal. ETC recommends that in the event you wish to pursue such an appraisal on your own behalf, you begin immediately. In order to eliminate any misunderstanding regarding the reasonableness of your appraiser's qualifications and fees which would be paid by ETC, we suggest that you provide to our office in advance a copy of your appraiser's proposal and suggested fee and I will respond accordingly as to ETC's agreement to pay said fee. ETC has engaged the services of Hunsperger & Weston, Ltd. to appraise the Property Interests. ETC hereby offers you the sum of to acquire the Property Interests. ETC's offer is based on transfer of the Property Interests to ETC unaffected by any liens, encumbrances, possessory interests or tenancies of any kind. Please note that if it is necessary to acquire the Property Interests through litigation ETC reserves the right to present evidence based upon the amount of just compensation determined by its appraiser. The Final Offer set forth in this letter shall remain open for 14 days from the date of this letter. ETC prefers to obtain the Property Interests for construction of the Project through negotiation and with your consent. If we are unable to reach agreement by that time, ETC may pursue acquisition of the necessary Property Interests through its power of eminent domain. Notice of Intent to Acquire and Final Offer to Purchase May 20, 2008 Page 3 Thank you for your cooperation in this matter. Should you have any questions, please do not hesitate to contact me at (720) 225-4011. In any event, I will be calling you soon to discuss this matter with you. Sincerely, ETC CANYON PIPELINE, LLC By: J , Enclosures: Arthur Smith, Manager of Engineering - Projects Exhibit A - legal description of centerline Exhibit B - permanent easement terms and temporary construction easement terms Exhibit C - CRS § 38-1-121 cc: Don Ostrander, Esq. Elizabeth Rubinstein, Esq. W LL I 125 POINT 'B Centerline of Proposed Pipeline 118 1.27 L2 LJ LJ 124 Section 36, T6S, R95W L21 12J- 10 23 Section 7, 775, R95W NORTH I, CORNER SEC EON 1 1982 PLM ALUM CAP LINE TABLE LINE DIRECTION LENGTH LI NO3'54'56"E 79.95 L1 N04100"29"W 213.47 L3 901'27'10'E 1497.29 14 6459'20'22"W 480 78 15 N06v1'13"w 430.31 L6SOS 5"W EY' N175751057wrw __.1120.46 9289 LEI N2n_2'n"W 74.17 L9 93576'04"W . 133.41 110 R3r05'04"W 83.92 1 N20'41i6"W 173 61 112 N10'31'08"W 184.04 4,04 113 '12t 52.46 114 /4211 41.18 115 18141'57"E N15'11'15"W 198.70 LIE 171.40 118 0301'25-W 13848 1.19 P0304'17"1P_ 7811 110 MI711C0"W N 41.88 120 8'04'41"W N04'04'p"w 114,39 121 N0I37'38 W 214,39 122 N46'18'49"W 94.75 11.3 N46'18'49"W 80.29 L1491361 '01 w 184.19 125 N36'I 7'36-E 114.96 L16 N84'55i57 191.59 127 9823'51 E 112.30 129 988873'35T 69.17 129 N37"J0''E 63.11 130 NJ4'14'3l31'E 79.98 L31 N10'5J76"E 140.27 132 11/4134'55'03'E 30.38 L33 N61'082 32.78 134 it 585W8'27'E 56.09 135 N171710"E 129.98 17 16 115 Eli 112 L11 LID 19 L8 - L J O.E. 35 31 290 Owner: DIAMOND ELK LLC 589'00'32"W, 2565.52' O.S.L. I (2151.74') f Existing Pipeline Owner: DIAMOND ELK LLG Owner: DIAMOND ELK LLC 5 Owner: DIAMOND ELK LLC DINT "A" Edge o/ Existing Rood 0 -L3 -L2 1100 Owner: DIAMOND ELK LLC (1235.50) LEGEND PUBLIC LAND SURVEY CORNER O ANGLE POINT P.O.B. POINT OF BEGINNING P.D.E. POINT OF ENDING SOUTH I/4 CORNER sEcnON 1 1982 ELM ALUM. CAP S89'01'47'E, 2647.70' EAST COPNCR SFr tICH CALCI A IED N) Z NOR MEAS CORNER SECTION 1 1911/1981 L L O BRASS CAP to n O CAST 1/4 COPNER SECEOW 1 911 O L O nPA55 CAP LD oi co "1 N SOUTHEAST CORNER SEC rim I ULULATED RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL DIAMOND ELK LLC Sec. 1, T7S R95W 4199.91 4199.91 Sec. 36, T6S R95W 2007.66 2007.66 Total 6207.57 LIEN ETC Canyon Pipeline LLC DESCRIPDON: RULISON TO ENTERPRISE PIPELINE ACROSS DIAMOND ELK LLC PROPERTY, SECTION 1, T7S, R95W, & SECTION 36, T6S, R95W, GARFIELD COUNTY, COLORADO EVIS10NI CALE: AS SHOWN I /16/08 DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07- 1 -06 SURVEYED BY: WASATCH SURVEYING ASSOCIATES EMU 906 MAIN STREET, EVANSTON, WY 82930 SURVEYING (307) 789-4545 EXA3IT SHEET 1 of 2 LEGAL DESCRIPTION A pipeline right-of-way located In the E1/2 of Section 1, T7S, R95W, and the SW1/4 SE1/4 of Section 38, T6S, R95W, 6TH P.M., Garfield County, Colorado, the centerline of said right-of-way being more particularly described as follows: Commencing at the Southeast Corner of said Section 1 and running thence S 89'01'47'E, 1235.50 feet along the South line thereof, thence N 00'58'13' E, 1284,99 feet to the POINT OF BEGINNING; thence N 03°54'56"E, 79.95 feet; thence N 04°00'29" W, 213.47 feet; thence N 01°2r10^ E, 1497.29 feet; thence N 59°20'22" W, 480.78 feet; thence N 06°02'23" W, 430.32 feet; thence N 08°54'05' W, 120.46 feet; thence N 17°57'41" W, 92.89 feet; thence N 27°02'22" W, 74.17 feet; thence N 35°26'04' W, 133.41 feet; thence N 31°05'04" W, 83.92 feet; thence N 27°41'16" W, 183.61 feet; thence N 20°31'58' W, 174.04 feet; thence N 12°14'06" W, 64.76 feet; thence N 21°18'12" E, 52.49 feet; thence N 18°41'57" W, 148.18 feet; thence N 15°1125" W, 198.70 feet; thence N 03°04'17"W, 171.48 feet to a point lying on the south line of said Section 36, said point lying S 89°00'32"W, 2151.74 feet from the Southeast Corner thereof thence continuing N 03°04'17" W, 38.21 feet; thence N 17°17'01"W, 71.04 feet; thence N 08°04'41" W, 143.88 feet; thence N 04°34'10' W, 214.39 feet; thence N 01°37'36"W, 94.75 feet; thence N 46°18'49' W, 140.47 feet; thence N 48°33'02"W, 184.29 feet; thence N 36°17'36' E, 214.96 feet; thence N 84°55'15"E, 191.59 feet; thence S 82'03'51"E, 112.30 feet; thence N 88°23'35" E, 69.17 feet; thence N 57°30'13"E, 63.11 feet; thence N 34°24'31"E, 79.98 feet; thence N 10°53'48" 6, 140.27 feel; thence N 34°55'03" E, 30.38 feet; thence N 62°08'18'E, 32.78 feet; thence S 85°48'27"E, 56.09 feet; thence N 17°17'20' E, 129.98 feel to the POINT OF ENDING said point lying on the north line of said SW1/4 SE1/4, N 52°09'01" W, 2140.18 feet from the Southeast corner of said Section 36. Said centerline being 6207.57 feet in length. BASIS OF BEARING The base bearing for this survey is S 89°00'32" W, 2565.52 feet between found monuments at the Northeast Corner and the North One -Quarter Corner of Section 1, T7S, R95W. CERTIFICATE OF SURVEYOR I, Ted Taggart of Frusta, Colorado hereby certify that this map was made from notes taken during an actual survey made by me or under my direction for ETC Canyon Pipeline LLC and that the results of which are correctly shown hereon. RIGHT-OF-WAY LENGTHS PROPERTY OWNER SECTION FEET TOTAL DIAMOND ELK LLC Sec. 1, T7S R95W 4199.91 4199.91 Sec. 36, T6S R95W 2007.66 2007.66 20' Total 6207.57 RIGHT-OF-WAY LIMITS BOX Reference Points FROM TO Additional Temporary Work Space Left 10' Permonent Right -of -Way Left 15' Permanent Right -of -Way Right 15' Additional Temporary Work Space Right 20' P.O.B. POINT A POINT A POINT B 20' 15' 15' 10' POINT A P.O.E. 10' 15' 15' 20' CLIENT: ETC Canyon Pipeline LLC DESCRIPTION: RULISON TO ENTERPRISE P PELINE ACROSS DIAMOND ELK LLC PROPERTY SECTION 1, T7S, R95W, & SECTION 36, T6S, R95W, GARFIELD COUNTY, COLORADO : EVISION• SCALE AS SHOWN 5/16/08 DRAWN BY: CJT DATE DRAWN: 3/05/08 PROJECT NUMBER: 07-11-06 SURVEYED BY RViTCK SURVEYfNG WASATCH SURVEYING ASSOCIATES 906 MAIN STREET, EVANSTON, WY 82930 (307) 789-4545 EXHIBIT A SHEET 2 of 2 RIGHT OF' WAY AND EASEMENT STATE OF COLORADO COUNTY OF GARFIELD KNOW ALL MEN BY THESE PRESENTS, that the undersigned, hereinafter referred to as GRANTOR, for and in consideration of the sum of TEN DOLLARS AND OTHER VALUABLE CONSIDERATION, paid by ETC CANYON PIPELINE, LLC, hereinafter referred to as GRANTEE, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, bargain, sell, assign and convey unto said GRANTEE, whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202, its successors and assigns, a Right of Way Easement, hereinafter referred to as ROW, to locate, survey a route, clear, entrench, construct, maintain, operate, and repair and replace as necessary a pipeline with appurtenances including, but not limited to, above and below ground valves, cathodic protection equipment, and pipeline markers hereinafter sometimes collectively referred to as the facilities, across, over, under, and through the lands of GRANTOR in the County of Garfield, State of Colorado, to wit: Subdivision Section Township Range SEI/4 1 7S 95W S1/2 NE1/4 1 7S 95W NW1/4 NE1/4 1 7S 95W SW1/4 SE1/4 36 6S 95W This ROW shall be thirty (30) feet in width, more particularly described as a permanent easement encumbering fifteen (15) feet of land on each side of the centerline described in Exhibit A, attached hereto and incorporated herein by reference. An additional thirty (30) feet of temporary construction easement ROW shall be necessary, is hereby acquired by the GRANTEE and is more particularly described in Exhibit A (see Right -of -Way Limits Box and references made therein). The temporary construction easement shall expire one year from the date of execution of this Right of Way and Easement Agreement. This ROW shall carry with it GRANTEE's rights and benefits necessary or convenient for the full enjoyment or use of the rights herein granted, including, but not limited to, right of ingress and egress to and from, and access on and along said ROW, with the right to use existing roads, for the purposes of locating, surveying, constructing, operating, inspecting, testing, repairing, altering, and maintaining the facilities and the removal or replacement of same at will, either in whole or in part, and the replacement of said pipeline with either like or different size pipe, and the right to cut all trees, undergrowth, and other obstructions that, in its judgment, may injure, endanger or interfere with the use of said facilities. This ROW together with all rights herein granted shall be covenants running with the land and be binding upon GRANTOR, its heirs, executors, administers, personal representatives, legal representatives, successors, and assigns, and may be assigned by GRANTEE, either in whole or in part, subject to the terms hereunder. EXHIBIT g GRANTEE may, at any time, and upon permanent abandonment of said ROW and removal of all improvements constructed thereon, execute and record a reconveyance and release hereof, whereupon this ROW and all rights and privileges herein mutually granted shall be fully cancelled and terminated. GRANTOR reserves the right to the full use and enjoyment of said property except for the purposes herein granted, but such use shall not hinder, conflict or interfere with GRANTEE's surface or subsurface rights hereunder or disturb its facilities and no road, reservoir, excavation, obstruction or structure shall be constructed nor be permitted for construction, created or maintained on, over, along or within said ROW without prior written consent of GRANTEE. GRANTOR further agrees not to change the grade or otherwise remove dirt from the surface of said ROW without prior written consent of GRANTEE. GRANTOR hereby agrees that consideration received for this ROW fully compensates GRANTOR for all rights herein granted, as well as surface damages resulting from construction of the facilities. GRANTOR represents and warrants that it is the owner in fee simple of the land herein described, and that the land herein described is not encumbered by any deeds of trust, mortgages, liens, encumbrances, possessory interests or tenancies of any kind. It is hereby understood that the parties securing this grant on behalf of GRANTEE are without authority to make any covenant or agreement not herein expressed and this ROW, as written, covers all agreements and stipulations, between the said parties, and no representations or statements, oral or written, have been made modifying, adding to, or changing the terms hereof. It is hereby understood that the parties executing this ROW on behalf of GRANTOR have authority to bind GRANTOR. IN TESTIMONY WHEREOF, the GRANTOR, herein has executed this conveyance this /7 day of Jan -i- , 2008. GRANTOR: Diamond Elk, LLC A Colorado Limited Liability Company Joseph P. arrett Attomey-In-Fact 2 GRANTEE: ETC Canyon Pipeline, LLC Bv: Arthur mith Manager of Engineering - •rolects THE STATE OF COLORADO CONTY OF )e/2/el . The foregoing instrument was acknowledged this// 7 day of �/%'�2 , 2008, before me, a notary public, in and for said county and state, personally came the above-named Joseph P. Barrett as Attorney -In -Fact for Diamond Elk, LLC who is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. My Commission Expires: 3/20/ THE STATE OF COLORADO CONTY OF ,All 11 Llr C Notary Public in and for The State of Colorado The foregoing instrument was acknowledged this / / day of JU/22 , 2008, before me, a notary public, in and for said county and state, personally came the above-named Arthur Smith as Manager of Engineering - Projects for ETC Canyon Pipeline, LLC who is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. My Commission Expires: Notary Public in and for The State of Colorado § 38-1-121. Appraisals --negotiations (1) As soon as a condemning authority determines that it intends to acquire an interest in property, it shall give notice of such intent, together with a description of the property interest to be acquired, to anyone having an interest of record in the property involved. If the property has an estimated value of five thousand dollars or more, such notice shall advise that the condemning authority shall pay the reasonable costs of an appraisal pursuant to subsection (2) of this section. Such notice, however, need not be given to any of such persons who cannot be found by the condemning authority upon the exercise of due diligence. Upon receipt of such notice, such persons may employ an appraiser of their choosing to appraise the property interest to be acquired. Such appraisal shall be made using sound, fair, and recognized appraisal practices which are consistent with law. The value of the land or property actually taken shall be the fair market value thereof. Within ninety days of the date of such notice, such persons may submit to the condemning authority a copy of such appraisal. The condemning authority immediately upon receipt thereof shall submit to such persons copies of its appraisals. If the property interest is being acquired in relation to a federal aid project, then the appraisals submitted by the condemning authority shall be those which have been approved by it pursuant to applicable statutes and regulations, if such approval is required. All of these appraisals may be used by the parties to negotiate in good faith for the acquisition of the property interest, but neither the condemning authority nor such persons shall be bound by such appraisals. (2) If an appraisal is submitted to the condemning authority in accordance with the provisions of subsection (1) of this section, the condemning authority shall pay the reasonable costs of such appraisal. If more than one person is interested in the property sought to be acquired and such persons cannot agree on an appraisal to be submitted under subsection (1) of this section, the condemning authority shall be relieved of any obligation herein imposed upon it to pay for such appraisals as may be submitted to it pursuant to this section. (3) Nothing in this section shall be construed as in any way limiting the obligation of the condemning authority to negotiate in good faith for the acquisition of any property interest sought prior to instituting eminent domain proceedings or as in any way limiting the discovery rights of parties to eminent domain proceedings. (4) Nothing in this section shall prevent the condemning authority from complying with federal and state requirements to qualify the authority for federal aid grants. (5) Nothing in this section shall be construed to limit the right of the condemning agency to institute eminent domain proceedings or to obtain immediate possession of property as permitted by law; except that an eminent domain proceeding may not proceed to trial on the issue of valuation until the ninety -day period provided in subsection (1) of this section has expired or the owner's appraisal has been submitted to the condemning authority, whichever is sooner. (6) If the parties involved in the negotiations fall to reach agreement on the fair market value of the property being acquired, the condemning authority, prior to proceeding to trial on the issue of valuation, shall furnish all owners of record a written final offer. EXHIBIT Co RIGHT OF WAY AND EASEMENT STATE OP COLORADO COUNTY OF GARFIELD KNOW ALL MEN BY THESE PRESENTS, that the undersigned, hereinafter cumulatively referred to as GRANTOR, for and in consideration of the sum of TEN DOLLARS AND OTHER VALUABLE CONSIDERATION, paid by ETC CANYON PIPELINE, LLC, hereinafter referred to as GRANTEE, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, bargain, sell, assign, and convey unto said GRANTEE, whose address is 1600 Broadway, Suite. 1900, Denver, Colorado 80202, Its successors end assigns, a Right of Way and Easement, hereinafter referred to es ROW, to locate, survey a route, clear, entrench, construct, maintain, operate, and repair and maintain as necessary a pipeline with appurtenances including, but not limited to, above and below ground valves, cathodic protection equipment, and pipeline markers hereinafter sometimes collectively referred to as the facilities, across, over, under, and through the lands of GRANTOR in the County of Garfield, State of Colorado, to wit: Subdivision ,Section Township Range E/2 1 7S 95W SW/4SE'4 36 6S 95W. This ROW shall be thirty (30) feet In width. An additional thirty (30) feet of temporary construction ROW shall be necessary and shall expire upon completion of construction. Said ROW located on the above described lands Is generally described on a Preconstruction Pipeline Exhibit, hereinafter referred to as Exhibit "A", which shall be attached hereto and by this reference made a part hereof. Exhibit "A" is not intended to show the final location of the ROW or pipeline as actually constructed. The actual location of the ROW will be determined based on where the pipeline is actually laid. As such, Exhibit "A" shall be supplemented with As -Built Pipeline Exhibit after construction is complete and recorded at Garfield Courthouse records within sixty (60) of completion of construction. This ROW shall carry with it GRANTEE'S rights and benefits necessary or convenient for the full enjoyment or use of the tights herein granted, including, but not limited to, right of ingress and egress to and from, and access on and along said ROW, with the right to use existing roads, for the purpose of locating, surveying, constructing, operating, inspecting, testing, repairing, and maintenance. This ROW together with all rights herein granted shall be covenanty running with the land and be binding upon GRANTOR, his heirs, executors, administers, personal representatives, legal representatives, successors, and assigns, and may be assigned by GRANTEE, either in whole or in part, subject to the terms hereunder. GRANTEE may, at any time, and upon permanent abandonment of said ROW and removal of all improvements constructed thereon, execute and record a reconveyance and release hereof, whereupon this ROW and all rights and privileges herein mutually granted shall be fully cancelled and terminated. GRANTOR reserves the right to the full use and enjoyment of said property except for the purposes herein granted, but such use shall not hinder, conflict or interfere with GRANTEE'S surface or subsurface rights hereunder or disturb its facilities and no road, reservoir, excavation, obstruction or structure shall be constructed nor be permitted for construction, created or maintained on, over, along or within said ROW with prior written consent of GRANTEE. GRANTEE hereby covenants and agrees to indemnify and forever hold harmless GRANTOR against each and every claim, demand or cause of action that may be made or come against him by reason or In any way arising out of any detect, imperfection, operation, maintenance or constriction of said facilities, GRANTOR hereby agrees that consideration received for this ROW Nilly compensates GRANTOR for all rights herein granted, as well as surface damages resulting from constriction of the facilities. GRANTOR represents and warrants that he is the owner in fee simple of the land herein described, subject only to outstanding mortgages, if any, now of record in said county, and in the event of default by GRANTOR, GRANTEE shalt have the right to discharge or redeem for GRANTOR, in whole or in part, any mortgage, tax or other lien on said land and thereupon be subrogated to such Ilea and rights incident thereto. Diamond Elk, LW I/2l/20na It is hereby understood that the parties securing this grant on behalf of GRANTEE are without authority to make any covenant or agreement not herein expressed and this ROW, as written, covers all agreements and stipulations, between the said parties, and no representations or statements, oral or written, have been made modifying, adding to, or changing the terms hereof, with the exception of Exhibit "B", which shall be attached hereto and by this reference made a part hereof. It is hereby understood that the parties executing this ROW on behalf of GRANTOR have authority to bind GRANTOR. d IN TE$ ONY WHEREOF, the GRANTOR, herein have executed this conveyance this 21i day of ((rid CC , 2008, GRANTOR: Diamond Elk, LW A Colorado Limited Liability Company By: NJoseph '" ett a: Assistant Secretary GRANTEE: ETC Canyon Pipeline, LW By: Name: Brian Peters Title:Director-Pipellneinglneedng& Operations THE STATE OF COLORADO COUNTY OF .PCl2t/Pev The foregoing instrument was acknowledged before me this 27 day of Ott • , 2008 before me, a notary public, in and for said county and state, personally came the above-named ,Joseph P. Barrett as Assistant Secretary of Diamond Elk. LW. a Colorado Limited Liability Company who Is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my band and affixed my notary seal the day and year above written. (thee My Commisslon Expires: 5/Li/ / ( THE STATE OF COLORADO COUNTY OF..DenVer Notary Public in an for The State of Colorado The foregoing instrument was acknowledged before me this2— day of Ott, • 2008 before me, a notary public, in and for said county and state, personally came the above-named)3rian Peters as Director — Pipeline Enaineerinn & Operations for ETC Canyon Pipeline LLC who is personally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act s— and deed. ' E. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year de +0" �" R�/i( o, : CE Rb .CP e j • re i111A0 GPOO�,BLk�4Ou F COS.O ty'4 written. / My Commission Expires: 5/2/fi/ CQ. iGLe2a—) Notary blip in and for The Slate of Colorado Diamond Elk, LLC 1/21/20 EXfjISR"A" Part l of3 Attached to and made a part of a„aIn Right of Way and Easement dated Odebar 7IS 2008, by and between Diamond Me= a Colorado Limited Llablity Company. Grantor, and ETC Canyon Pipeline LLC, Grantee .i 7NVingSNAdlti&Ig11111111•@@@8entiii0t¢ WIPRY CO QP N ' ( Center/InpP T Ptoposep eUna S,d#oa J4 NS 815W I. TTS RAM wdrr a w nine I ii11aaSll" 01710"Mrt[CI SSG ^Vt+ I nue Sin^==-rv: ,:.rn J111011111. r-:lilSL>_n �IS I n!r]aa nx1I aSaR a��faf I1 aaSerrti Glaaa/flf S`1IIIIIMD II�'77 T.'ISI?ID Saar P1MatfJT E1111FiFO aSRSn Sa11arTn '71r,Sw stTrrs tat ?nir+r.laL'JJ S TI 11!2 I SIt NSO:— vn 1aO Raaf 11 SF:'bW T!!I Aaa HSam^. 1.1S1118 Pi or /T91 Muir:of 1•11111119111 'ril SWIM nLJ1 }1/S12 11 aaSm Sf'1-015nS�II7�p] �3i1 17221iaa�tlLn St.j111fl i7PVIS 111 S>GcID�Sq vi 1SGg1 aa�S*MxP rxtll S 'PI miaow- 22222s•�ill pnSNITY'11�3J jS1•a nv'W'1S rm Vy [I LI U lI I r aLIt 1- LEGEND MVO VNO SURS2y CORNER AO& NMI Of mama aµOtt NWT P.&E POINT OF WINO Lilac E Is "8u. 25:5.52', 8161.71) teeth P610119 D Amur cWo DDR tit A' LThgRood Odom M� [1 n ilrLI,L4 • ;Tht1 02.3160) n 569E71'47 E, 2647.70' atiW µ01w Mlu%o RIO NT•OF•WAYLENGTHS PROPERTY O'A'NER SECTION FEET TGTAL ONMONDELKLLO Sat I,T7S ROW 410461 410611' See. 80,T68R56W 2007A6 200714 Total 020717 FiNn ETC Canyon Plpellne'UC "'AS iNOM ' g O/16/08 RWnD an 09503P909 RIRISON TO ENTERPRISE PIPELINE ACROSS DIAMOND ELK L10 PROPERTY 5EC110N 17S, RBSW, & SECTION 36, 165, RBOW GARFIELD COUNTY, COLORADO DRAM Sn "Nf DAtt DRAM 3/05/08 k0JECTNOYOE& 07-11-06 �L 8041001 nUflR,is JSSDOAIEO auavRiTYrrv7 90871 I 86115. EWNsION, Wt 82030 EXHIBIT "&" Part2of0 Attached to and made a part of a Right of Nay and Easement dated October 2008, by and between Diamond E&, Lie a Cobrodo LMAed llabTh , Company, Ghanlor, and ETC Canyon Pipeine LLD, Greets tl�I{i►p11 Rdl �iltht�ih hnilVh �IlCtiti411N�1 "Jill' H, LEGAL DESCRIPTION A0044016MaMwanNCWedMuy81A64e4dk4 1, 776 R uM an SW1116E114 of M el, 34 7* R%IP, 6701W, Givitmrc0�Cobtork Ms z4seascaalmnuin ot4aNrBA10P.Y5aph8 C4mwatgN a4x6ru( weful}e4WNn1aodpmh0 Memo sate o01rz MEW NtlabyeY BMAw Mao( tlunet100'631$'ry 1230OFWbOap02, OPBEO Mena Ntyy'61fa•a, 7RO8l.tI o0.fi5 'N 2,215 Mei N%c3WW 4*82The4Wm* W207rW, ua7Bn44 Enna N 09.0223'W 43a8f Fo41Ama N'Og22'SWUM, I2a16 Nttr IMnwoir6PN•y11202Ne4MeneN il'o3O'W, 74/7/.4 04Ace NJ6'200!'W,12511 kat tawN21'af1N'W, N 4 MonaN2741MIAM1Na4M..N081KPW 114.04 kg; axiom N2f4WW, CA70F*M.oc.21MC1YC,Pp Menge 410'41WW,1..f6Ne4MRx0N16'1173• ,105Sm444 0udeno&'d9*W,171A89 WNapci9Aypen44 9010no W0 Bemaln35u hohlbilp800Yw'22'W2161,74RW0rm MI B.1n.t Rvrhar ma4(iets Se.IeW,18114 4 Mena i$NBrW. 71.0( Na4MNkeNO6ef4PW. 1/581 * motor N 04.8/10'621419f441aod.H4 67x6' W. 18.76944 Moo NWNWW 710ATrw46YneeN40e007/Y, 1841944 Mena NWont, IfV B, 24A/Net$Mme NNW 8%,14,4Fat Nae. 0 02'W 7Y $112901.414444 Nu.20.11 9.17 44 1gnaI67VBf0'B, 14227 41MM4rialae' 8U•P lae0F44 Mena Id 10'N40'B, 140BtntL Arca 34.6687 66a30N44 M.oefe2'0070'6127CN44 Memoi 861407r"E,b4094et Mime NSr172Ma InensN In u aW pbft0a Sat at OW1NB61N, liVueu119,2114ismolNAnW &WW st tamrd.lOBedbn 38. SAN ea*Ohee.e0207,67N.kMr k 1 BASIS OF BEARING The base beefing fortfe surveyor 889.0052• Y/, 266162 fee tbetween found monuments el the Northeast emerald the Noah One -Quarter Comerof Secgal 1, T78, RO6W. CERTIFICATE OF SURVEYOR I, TetTeggert of Fade, Cototadehereby ce y (hit this mop was mode from n02es token Meng an aeluelsurvey made byme or under mydlaoNon for ETC Canyon Pipeline LLCand Maths mull; of *oh are corp otyehown hereon. RIGHT-OF-WAY LENOTHS PROPERTY OWNER SEC, 110N FEET TOTAL DIAMOND ELK LW Sec. 1,TTS ROSH 4108.91 4190.01 Sec 38, T88 R95W 2001.08 2007.85 15' Total e20E57 RIONTR'QWPPa-WAY LU9T8 BOX Pauinonent FROM - TO AddlNpeW Temporary Work Spate Lett fight -of -Way telt Permanent Right -of -Way RICA . Addltnnel Temporary Work Spore Right P.O.O. POINT A 10' 15' 15' 20' POINT A POINT 8' 20' - 15' 15' 10' POINT B P.O.E. 10' I5' 15' 20' wain ETC Canyon Pipeline tic OESCAPTMtE RWSON TO ENTERPRISE PIPELINE ACROSS OW4OND EIR tic PROPERTY. SECTION I, 77S, RSSW, & 5E080N 35, The, MEW, OARRELO COUNTY, COLORADO SCND AS SWAN niS/16/08. ERAMI em CJT 081E OMNI 3/05/08 IMOOT Lvueup 07-11-06 erarxo an WATCH SIMK.YHO AssoaATEg 44511894 SIRED, EVANSTON. WY e2e00 (301) 789-4545 EXHIBIT A EXHIBIT"A" Pall 3 o[8 Attached to and made apart otceddealIppw� WO atWa end Easement dated October 2008, 2008, by and behreen Diamond Ea( LLC a Cobreda ltgVed LIabf y Company, Grantor, and ETC Canyon Pipeline LLC, Grantee Pala Center//no of Proposed pipe/Ina Section TR, MS; R95W Batten 7, 77$ R95W RAN (12 Nie[ ROA WITenl. k 1iRtT:.-JS S ,if TT-TP;k'1i OINIF, aE2 ;,-rI h,1i,esU MEND Tfl 111="' Chilll7=111 1"55 SrSliM. 1 rzm itTT iL fl S S ,iarowrl1 iitia =suairlis5,7iC5"' S[D SOUSTaai3 sial S11; MIONSR'A lT 1i[LO IMIllflH SIIISass N5t0 1411 St 'I itt9 ran) �'FP1SCZ i Sa-1�.TP1TV Ii[.%i11 STDI Th i1TM �D �__ k3 MIN S l-,ij.YT1i i114N S S`11:G�Ir1 ' SE1 .. eaTii� n'T'n7SnTri SEG 11 SE) ��'nLt5nflsaX) MOM -5L EMIII21K.ilMN= Ut N. Omen LI LIS E by _ h p� roc ac 5891703219. 2585.52' (2131.70 E ENethe RpRhe O"mn I I I Le I lomigNo ax E0 COI of 6ferhe R. Ownin DIMMG'ELK J0 r A' evnan mum Etre 4O (12.uso trOWIl I bz aLa w ti !V LEGEND 0 PUBO° IMO SIP5,EY CORNER o ,WGIE Pp/lT PAR POif7 Of OWNWHO PAI. PANT OF EMWNG 58921147 E, 2847.70' RIGHT-OF-WAY LENGTHS PROPER1YCWNER SECTION PEET TOTAL dAAtONDELKLLC 1Ro.1, TU6R65'N 4768.91 4189.01 Sem 38. TN ROSY! 2007.68 2007.89 Tobe 8207.67 1011' ETC Canyon Pipeline LLC DLSERPf02: RUIISON TO ENTERPRISE PIPEUNE ACROSS DIAMOND ELK LIG PROPERTY, SECTION , T75, R95W, & SECTION 38, T6S, ROSY?. GARFIELD COUNTY, COLORADO h As SHOe` ia1/10/081 pRA%H en Ort DALE ORA rw: 3/05/08 I[9o.1[GT nuhmER: 07-11-06 scitWNWLflO on NASA104 SURYNND ASOCATES (9aMAN STREET, EVANSTAY, VAT 52930 I EXHIBIT "B"—LANDOWNER SPECIFIC STIPULATIONS GRANTEE agrees to the following stipulations: 1. Bury all pipes to a minimum of 48 -inches of cover, so as not to interfere with cultivation of soil and other development. 2. Repair all fence crossings to as good or better than previous condition. 3. Cease construction operations in excessively muddy conditions. 4. Any and all construction vehicles, equipment and materials, while not in use, shall be parked or placed in the ROW, 5. All ROW and access roads shall be kept safe and in good order, and shall at all times be kept free of litter and debris caused as a direct result of GRANTEE'S activities. 6. Except for normal and routine maintenance mid repair during construction activities, no construction equipment shall be repaired or maintained upon subject lands. No motor fluids will be disposed of on the subject lands. 7. MI gates shall be left as they are found. Access must be coordinated with Diamond Elk,LLC contact noted below. 8. No firearms, pets, alcohol or illegal drugs shall be allowed on the property at any time. _ 9, GRANTEE shall seed all disrupted areas with either BLM seed mix, or the seed•type(s) selected by GRANTOR. 10. GRANTEE shall be responsible for weed control in all areas disturbed by GRANTEE throughout the term of this ROW. I I. My large reeks (greater than 4" in diameter) excavated by GRANTEE shall be distributed or disposed of by GRANTEE as directed by GRANTOR, 12. The ROW shall be returned to the original topography, to the extent feasible, so that there are no permanent mounds, ridges, sinks or trenches. 13. All operations should be coordinated with GRANTOR contact noted below, ou a daily basis, or as near as possible. 14. Notice by either party hereto shall be promptly given orally, and if necessary or possible, confirmed in writing and mailed to: GRANTOR: Diamond Elk, LW Sandy Retard, Agent 1058 County Road 215 Parachute, CO 81635 (970) 263-2288 sandylotard@williams.com GRANTEE: ETC Canyon Gas Pipeline, LLC 1600 Broadway, Suite 1900 Denver, Colorado 80202 (720) 225-4000 Diamond Elk, LLC 1/21/2008 GROUND LEASE STATE OF COLORADO COUNTY OF GARFIELD THIS GROUND LEASE (this "Lease"), made effective this 3rd day of December 2008, by and between Solvay Chemicals, Inc. (American Soda, LLP), whose address is 3333 Richmond Avenue, Houston, TX 77098, hereinafter called "Lessor," and ETC Canyon Pipeline, LLC, a Delaware limited liability company, whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202, hereinafter called "Lessee." The individuals, companies, and entities named above may sometimes' individually be referred to as "Party" and collectively as the "Parties." WITNESSETH: For and in consideration of Ten Dollars ($10.00) and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are . hereby acknowledged, Lessor has granted, leased and let, and by these presents does hereby grant, lease and let unto Lessee, for the purposes agreed to herein, exclusive use of the surface of the following described property, situated in Garfield County, Colorado: A parcel of land situated in Garfield County of Section 2 of Township 7S, Range 96W of the NI/2, containing 1.31 acres more or less, and as more particularly. described on the attached Exhibit "A" which is incorporated herein for all purposes. The above-described property is hereinafter referred to as the "Leased Premises." Lessor and Lessee hereby agree as set forth herein: Purpose of Lease. The Leased Premises may be used by the Lessee for any and all, purposes consistent with Lessee's business activities of natural gas gathering, including, but not limited to, 'constructing, maintaining, operating and storing on the Leased Premises, equipment; warehouses, machinery, engines, tank batteries, pumps, power stations, pipelines, and other materials and equipment for purposes incidental to the foregoing privileges, including rights of ingress and egress. 2. Ingress and Egress. Lessor hereby grants to Lessee the non-exclusive right of ingress and egress to and from the Leased Premises, and across the existing roads and pathways connecting thereto, as is reasonably necessary for Lessee to access, operate and maintain the Leased Premises. Lessee agrees to maintain its proportionate share of the existing rail crossing and road access to facility. 3. Term. This Lease shall be effective for a period beginning on the effective date of this Lease and shall continue for a term of ten (10) years. Throughout the term of this Lease, and at Lessee's sole cost and expense, Lessee shall: (i) take good care of the Leased Premises and all other improvements placed by it on the Leased Premises, including control of noxious weeds as required by governmental authorities; (ii) keep the same in good and safe order and condition, reasonable wear and tear excepted; and (iii). fully and timely make all necessary repairs thereto, interior and exterior, structural and 'nonstructural, ordinary and extraordinary,' and unforeseen and foreseen. • As used herein; the term "repairs" includes all necessary replacements, renewals, alterations, additions and betterments. All repairs shall be performed promptly in a good and workmanlike manner in compliance with all applicable permits, authorizations, building and zoning laws and all applicable legal requirements. Lessee shall put, keep and maintain all portions of the Leased Premises in a clean and orderly condition free of rubbish and other obstructions. Lessee, at Lessee's sole cost assumes the full and sole 'responsibility for the condition, operation, repair, replacement, maintenance and management of the Leased Premises and such improvements. 4. Consideration. .Lessee shall pay to Lessor, a one time payment of $50,000 for the initial ten (10) year term of the Lease, due on the execution ofthis Lease. 5: Option to Renew. Grantee shall have the option to renew. this Agreement prior to the expiration of the initial Ten (10) year term for one (1) additional Ten (10) year term upon the same terms and conditions as provided for herein for a consideration of $50,000.00 adjusted for inflation according to the following formula: $50,000.00 multiplied by the quotient of AB = Renewal Option Payment, where: • A = The Consumer Price Index (CPI -U. Average [1982-1984] - all items, Bureau of Labor•Statistics of the United States Deparment of Commerce) for the third month prior to the expiration of the initial Ten (10) year term; B = The same Consumer Price Index for the month this Agreement becomes effective; provided, in no event shall the, Renewal Option Payment be less than $67,195.82. If there shall be no such Consumer Price Index at the time of renewal, then the parties shall use the most nearly comparable successor index, approximately adjusted to the month this Agreement becomes effective. 6 Surrender. Lessee may surrender this Lease in whole or in part at any time by filing an instrument of full or partial surrender of public record in the county wherein the Leased Premises are located. Upon such surrender, Lessee shall be relieved of all obligations under this Lease as to lands so surrendered, except as specifically noted herein. 7. Removal of Eauiument. The Parties agree that all buildings, machinery and other material, equipment and property placed on the Leased Premises by Lessee shall not become part of the real' property but shall remain the personal property of Lessee, and that Lessee shall have the privilege of removing all personal property and improvements placed by it on the Leased Premises, provided it does so within six (6) months following termination or expiration of this Lease. 8. Reservation of Mineral Operations on Leased Premises. ' Lessor reserves the right for itself or its assignees to explore for, mine, and remove oil shale, oil and gas, ores and other minerals in, on or under the Leased Premises, in a manner not to interfere with or be otherwise inconsistent with the purposes of this Lease. Indemnity. (a) Lessee agrees to protect, indemnify and hold Lessor and Lessor's affiliates, parent and subsidiary companies, joint ventures and partners (the "Lessor Indemnitees") harmless, from and against any and all liability, loss, damage, injury, costs (including attorneys fees), expenses, fines, claims, demands and causes of action arising out of, or in any way connected with Lessee's activities or operations under this Lease, including (i) injury to or illness or death of any person (including but not limited to a Lessor Indemnitee or an employee or agent of -Lessor or Lessor's contractors or subcontractors or any third party), (ii) loss of `or damage to property (including but not limited to property of the Lessor Indemnitees, Lessor, Lessor's contractors or subcontractors or any third party), or (iii) violation of any federal, state or local laws, rules, regulations, and orders including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, as amended ("CERCLA"), and the Resource Conservation and Recovery Act, as amended ("RCRA"). This indemnity shall not apply to the extent that it is void or otherwise unenforceable under applicable law. (b) Lessee shall not be obligated to correct nor shall Lessee's indemnity obligations include: (i) any condition arising out of, resulting from or in any way connected with, any spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, migration or other releasing into the environment, whether intentional or unintentional (collectively, a "Release') which occurred prior to the effective date hereof or is at any time caused by Or through Lessor (including Lessor, any agent or representative of Lessor or its affiliates); or (ii) any environmental conditions documented in any Phase I or Phase II Report relating to a time prior to the effective date hereof with respect to the Leased Premises (collectively the "Excluded Matters"). Lessor and Lessee agree that prior to the effective date hereof, Lessee shall pay for the cost of a Phase I Environmental Site Assessment, on the Leased Premises in order to establish the baseline condition of the Leased Premises prior to the effective date hereof. Such work shall be conducted by a mutually acceptable environmental consultant. 10. Lessee Insurance Requirement. Lessee shall maintain, during the term of this Lease, the insurance coverages and endorsements indicated on Lessee's certificate of insurance attached hereto. 11. Warranty. The undersigned wanant that they are authorized to execute this Lease on behalf of the Parties to this agreement. Lessor hereby binds itself, its heirs, legal representatives and assigns to wan -ant and forever defend all and each of the above • described easements and rights, unto the said Lessee and Lessee's successors and assigns against every person whomsoever lawfully claiming or to claim the same, or any part thereof by, through and under Lessor, but not otherwise, and the easements conveyed herein are conveyed by Lessor and accepted by Lessee expressly subject to any exceptions and reservations and other matters existing on the effective date of this Lease affecting title of record, including all existing easements, rights-of-way, licenses, leases and other agreements affecting the surface or subsurface of tbejeased Premises._Lessee 3 may, at its option, discharge any tax, mortgage, or other lien on the Leased Premises, in whole or in part, and thereby be subrogated to each such lien or liens, with the right to enforce the same and to apply all rentals toward the satisfaction thereof. If Lessor owns less than the entire interest in the Leased Premises, the rentals to be paid hereunder shall be proportionally reduced. 12. Assignment. All of the terms, covenants, and conditions of this Lease shall be binding upon the successors and assigns of the Parties. 13. Breach and Cure. It is agreed that no default or breach of this Lease shall be deemed to have occurred on the part of Lessee until sixty (60) days after written notice of such default or breach shall have been given to Lessee, and the Lessee within such time shall have failed to remedy such default or breach. 14. Environmental Discharge or Hazardous Materials. Should any' discharge, leakage, spillage, emission, or pollution or Environmental Liabilities of any type occur upon or from the Leased Premises due to Lessee's use and occupancy thereof, Lessee, at its expense, shall be obligated to. reclaim the Leased Premises to the satisfaction of any appropriate governmental body enforcing applicable law having jurisdiction thereover as soon as reasonably possible. "Environmental Liabilities" shall mean any investigation, notice, violation, demand, allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (i) pursuant to, or in connection with an actual or alleged violation of, any applicable law or any environmental permit, (ii) in connection with any Release or handling or use of any Hazardous Materials, (iii) from any abatement, removal, remedial, corrective or response action taken under any applicable law or order of a governmental authority or (iv) from any actual or alleged damage, injury, threat or harm to health, safety, natural resources, property, person, or the environment. "Hazardous Materials" shall mean: (i) any "hazardous waste" as defined by RCRA or under any applicable state analogue; (ii) any "hazardous substance" as defined by CERCLA and regulations promulgated thereunder or under any applicable state analogue; (iii) any petroleum-based products, by-products or waste materials; (iv) any other substance that under applicable law requires special handling or notification of any governmental authority in its collection, storage, transport, treatment, or disposal, including without limitation asbestos -containing materials and lead-based paint; and (v) any other chemical, substance or waste that is regulated under any applicable law. Lessee covenants that all improvements built on the Leased Premises by Lessee shall be constructed in a manner, to the extent reasonably feasible, to prevent Releases of Hazardous Materials into the soil, groundwater, or surface water on, at, or underlying the Leased Premises. Lessee further covenants that it shall construct and install (i) state-of- the-art containment areas, that shall be constructed of concrete lined with a liner compatible with materials being stored therein, for all tank storage areas; (ii) state-of- the-art containment areas, that shall be constructed of concrete lined with a liner compatible with materials being stored therein, for all rail and truck loading and unloading areas; and (iii) one or more covered areas for the storage of products and wastes contained in drums, pails or totes, with such areas to have a concrete floor with a lining compatible with the materials being stored thereon. 4 15. Taxes. Lessee agrees to pay promptly and before delinquency all taxes and assessments levied or assessed upon or against the Leased Premises or its facilities and operations on the Leased Premises, during the term hereof, by reason of, or resulting from Lessee's activities under this Lease. 16. Notices. All notices shall be in writing with postage prepaid addressed to the applicable Party hereto at the address set forth below, or to such other persons and addresses as may hereafter be designated by the Parties hereto in writing. All notices shall be deemed delivered when deposited in a United States post office enclosed in a prepaid envelope addressed as hereinabove provided, or if not mailed, when delivered in person to the affected Party. Within five (5) business days of any of the triggering events described in this paragraph below, Lessee shall notify Lessor in writing of, and provide any reasonably requested documents upon learning of, any of the following relating to the operations or activities of Lessee on or at the Leased Premises: (1) any material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or any comparable state law relating to remediation of Releases; (2) any notice of a material Environmental Claim; (3) any material violation of an applicable law or material Release or threatened Release of a Hazardous Material; . or (4) any environmental; natural resource, health or safety condition, which is not in compliance with applicable laws or environmental permits, and could reasonably be expected to cost in excess of $10,000 to remedy. In the event of any unpermitted or unauthorized Release 'of any Hazardous Substance on the Leased Premises during the term of this Lease not caused by or through Lessor, Lessee: (i) will immediately give written notice to Lessor of the Release; and (ii) with respect to any Release which: (a) is caused in whole or in part by Lessee (b) in any way arises from Lessee's use of the Leased Premises, Lessee, at Lessee's sole expense; shall promptly remove and/or institute a remediation program in respect of such Release in accordance with the requirements of applicable law applicable thereto including, without limitation, full and timely cooperation by Lessee with all •governmental authorities. All such notices required under this paragraph shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the Lessee's response thereto. In addition, Lessee agrees to provide Lessor with copies of all material written communications by the Lessee with any person or governmental authority relating to any of the matters set forth in above, as may reasonably be requested by Lessor. LESSEE: ETC Canyon Pipeline, LLC Attn: Scott Pierce 1600 Broadway, Suite 1900 Denver, Colorado 80202 Fax: 970-263-0962 Office: 970.2484587 LESSOR: Solvay Chemicals, Inc. (American Soda, LLP) Atte; Marc Nuchelmans 3333 Richmond Avenue Houston, TX 77098 Office: 713-525-6827 Fax: 713-525-7807 5 With copies to: Solvay Chemicals, Inc. '(American Soda, LLP) 2717 County Road 215 Parachute, CO 81635 Office: 970-285-0400 Fax: 970-285-6393 17. .Termination of Lease. (a) Upon termination of the tights herein given, Lessee shall execute and deliver to Lessor, within thirty (30) days after written demand therefor, a good and sufficient release to all interest of Lessee in the Leased Premises so terminated. Should Lessee fail or refuse to deliver to Lessor such release, a written notice by Lessor reciting the failure or refusal of Lessee to execute and deliver said release, as herein provided, shall after ten (10) days from the date of recordation of said notice, be conclusive evidence against Lessee and all persons claiming under Lessee of the termination of this Lease or a portion thereof and all interest of Lessee hereunder as' to that portion, subject to Lessee's obligation to remove its property within six (6) months of such termination. Termination shall not operate to extinguish any obligations of Lessee which have accrued at the time of termination, or which accrue hereunder upon termination. (b) If an event of Force Majeure (as defined below) renders the Leased Premises substantially unusable by Lessee, Lessee's compliance with this Lease (but not including the payment of money, or the provision of insurance and/or indemnity) shall be excused if and for so long as compliance by Lessee is hindered or prevented by Force Majeure. In such event, Lessee shall give written notice to Lessor by the fastest means of communication available, specifying the circumstances which Lessee believes constitute Force Majeure and the estimated duration thereof. "Force Majeure" means any act, circumstance or event beyond the control of Lessee, including but not limited to earthquakes, hurricanes, fires, storms, tidal waves or other Acts of God, riots, strikes, lockouts; picketing, boycotts, insurrections, rebellions, civil disturbances, terrorism, war and dispositions or orders of governmental authority, whether such authority be actual or assumed. 18. Anplicable Law. (a) This Lease and the exhibits hereto shall be governed as to validity, enforcement, construction, effect, and in all other respects, by the law of the State of Colorado, and its . courts shall have jurisdiction to enforce this Lease. (b) Lessee shall comply with all building, zoning and health codes and other ' applicable laws for the use of said Leased Premises. (c) Lessee shall, at all times, do the following: (i) comply in all material respects with, and maintain the Leased Premises in compliance in all material respects with, all applicable laws; (ii) require that its contractors and subcontractors comply in all material respects withall applicable laws; (iii) obtain and maintain in MI force and effect all approvals of and permits required by any governmental authority under any applicable law for its operations on the Leased Premises; (iv) cure any violations of applicable laws by it or its operations on the Leased Premises; (v) not allow to be built or operated on the Leased Premises any hazardous waste treatment, storage, recycling or disposal facility, or solid waste disposal facility, for which a permit is required pursuant to RCRA or any comparable state hazardous Waste law; (vi) not' manufacture, use, generate, transport, treat, store, Release, dispose or handle any Hazardous Materials at any of the Leased Premises exeept in the ordinary course of its business; and (vii) promptly provide or otherwise make available to Lessor any reasonably requested environmental records, data, or. reports concerning the Leased Premises that the Lessee possesses or can reasonably obtain. (d) . The rights and obligations hereunder, shall survive the expiration or earlier termination of this Lease. 18. Attorneys Fees. In the event of a default by either Party in the performance of its duties, the court with the proper jurisdiction to resolve the dispute shall award reasonable attorneys fees and costs to the Successful Party or in such other manner as the court sees fit. 19. Memorandum of Lease. Contemporaneously with the execution and delivery of this Lease, the Parties agree to execute, acknowledge and' record an appropriate memorandum of this Lease to provide record notice of this Lease. 20. Counterparts. This Lease maybe separately executed in any number of counterparts and by different Parties in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Lease. Delivery of this Lease and any other document§ to be delivered in connection herewith by any Party may be effected, without limitation, by faxing a signed counterpart of any such document to the other Party (any Party that effects delivery in such manner hereby agrees to transmit promptly to the other Party an original signed counterpart). IN.WITNESS WHEREOF, the Parties hereto have executed this lease in duplicate. originals as of the day and year first above written. GRANTOR: Solvay Chemicals, Inc. (American Soda, LLP) By:! 7�c Title: Date: . /.7 - 3 - O/ GRANTER: ETC Canyon Pipeline, LLC By: Name: John Mich. el Howard Title: Chief Operations Officer Date: December 3,. 2008 7 THE STATE OF r� nn14 S COU -) w COUNTY OF S The foregoing instrument was acknowledged before me thisriday of 1.+e4c^'*`inm-i 2008, before At/ me, a notary public, in and for said county and state, personally came the above-named /t, h9"" as • for Solvay Chemicals, Inc. (American Soda, LLP) who is pars Wally known to me and known to me to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. My Commission Expires: 3 121.L01 ' .. �}' � Notary yPublic fn and for �✓✓,/✓1✓✓./.Y✓✓✓✓,/✓✓✓✓✓✓ .Ate of Tc X4 MARIE G JOHANSEN lei til : ; NOTARY PUBLIC, STATE OF TEXAS I) .1111.^otoreetrOtCe7e•tetelor-41:4•1/:0:41:141119 1 '2 ppro MY COMMISSION EXPIRES 1 (1 MARCH 12, 2012 THE STATE OF TEXAS COUNTY OP EEXAR • The foregoing instrument was acknowledged before me this '✓qday of ThCZ.oerh btJl 2008, before me, a notary public, in and for said county and state, personally came the above-named John Michael Howard as Chief Operations Officer for ETC Canyon Pipeline, LLC who is personally known to me and known tome to be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. My Commission Expires: MAR Ite ,Zo 12.. Publi eState ofu . 8 RIGHT OF WAY AND EASEMENT STATE OF COLORADO COUNTY OF GARFIELD KNOW ALL MEN BY THESE PRESENTS, that the undersigned, hereinafter cumulatively referred to as GRANTOR, for and in consideration of the sum of TEN DOLLARS AND OTHER VALUABLE CONSIDERATION, paid by ETC CANYON PIPELINE, LLC, hereinafter referred to as GRANTEE, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, bargain, sell, assign, and convey unto said GRANTEE, whose address is 1600 Broadway, Suite 1900, Denver, Colorado 80202, its successors and assigns, a Right of Way and Easemeht, hereinafter referred to as ROW, to locate, survey a route, clear, entrench, construct, maintain, operate, and repair and replace as necessary.a pipeline with appurtenances including, but not limited to, above and below ground valves, cathodic protection equipment, and pipeline markers hereinafter sometimes collectively referred to as the facilities, across, over, under, and through the lands of GRANTOR in the County of Garfield, State of Colorado, to wit: Subdivision Section, Eownshin IYanee EI/2 2 7S 96W SEI/4NWI/4' 2 '78 96W This ROW shall be thirty (30) feet in width. An additional thirty (30) feet of temporary construction ROW shall be necessary and shall expire upon completion of construction. Said ROW located on the above described lan4s is generally described on a Preconstruction Pipeline Exhibit, hereinafter referred to as Exhibit "A", which shall be attached hereto and by this reference made a part hereof. Exhibit "A" is not intended to show the final location of the ROW or pipeline as actually constructed. The actual location of the ROW will be determined based on where the pipeline is actually laid. As such, Exhibit "A" shall be supplemented with As-BuiltPipeline Exhibit after construction is complete. This ROW shall carry with it GRANTEE'S rights and benefits necessary or convenient for the full enjoyment or use of the rights herein granted, including, but not limited to, right of ingress and egress to and from, and access on and along said ROW, with the right to use existing roads, for the purpose of locating, surveying, constructing, operating, inspecting, testing, repairing, altering, and maintaining the facilities and the removal or replacement of same at will, either in whole or in part, and the replacement of said pipeline with either like or different size pipe, and the right to cut all trees, undergrowth, and other obstructions that, in its judgment, may injure, endanger br interfere with the use of said facilities. This ROW together with all rights herein granted shall be covenants running with the land and be binding upon GRANTOR, his heirs, executors, administers, personal representatives, legal representatives, successors, and assigns, and may be assigned by GRANTEE, either in whole or in part, subject to the terms hereunder. GRANTEE may, at any time, and shall, upon permanent abandonment of said ROW and removal of all improvements constructed thereon, execute and record a reconveyance and release hereof, whereupon this ROW and all rights and privileges herein mutually granted shall be fully cancelled and terminated. GRANTOR reserves the right to the full use and enjoyment of said property except for the purposes herein granted, but such use shall not hinder, conflict or interfere with GRANTEE'S surface or subsurface rights hereunder or disturb its facilities and no road, reservoir, excavation, obstruction or structure shall be constructed nor be permitted for construction, created or maintained on, over, along or within said ROW without prior written consent of GRANTEE. GRANTOR further agrees not to change'the grade or otherwise remove dirt from the surface of said ROW without prior written consent of GRANTEE. American Soda, LLP 10/28/2008 GRANTEE agrees to protect, indemnify and hold GRANTOR and GRANTOR's affiliates, parent and subsidiary companies, joint ventures and partners (the "GRANTOR Indemnitees") harmless, from and against any and all liability, loss, damage, injury, costs (including attorneys fees), expenses, fines, claims, demands and causes of action arising out of, or in any way connected with GRANTEE's activities or operations under this ROW, including (i) injury to or illness or death of any person (including but not limited to a GRANTOR Indemnitee or an employee or agent of GRANTOR or GRANTOR's contractors or subcontractors or any third party), (ii) loss of or damage to property (including but not limited to property of the GRANTOR Indemnitees, GRANTOR, GRANTOR's contractors or subcontractors or any third party), or (iii) violation of any federal, state or local laws, rules, regulations, and orders including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act, as amended ("CERCLA"), and the Resource Conservation and Recovery Aot, as amended ("RCRA"). This indemnity shall not apply to the extent that it is void or otherwise unenforceable under applicable law. GRANTEE shall not be obligated to correct nor shall GRANTEE'S indemnity obligations • include: (i) any condition' arising out of, resulting from or in any way connected with, any spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, migration or other releasing into the environment, whether intentional or unintentional (collectively, a "Release") which occurred prior to the effective date hereof or is at any time caused by or through GRANTOR (including GRANTOR, any agent or representative of GRANTOR or its affiliates); or (ii) any environmental conditions documented in any Phase I or Phase II Report relating to a time prior to the effective date hereof with respect to said property (collectively the "Excluded Matters"). GRANTOR and GRANTEE agree that prior to the effective date hereof, GRANTEE shall pay for the cost of a Phase I Environmental Site Assessment, on said property in order to establish the baseline condition of said property prior to the effective date hereof. Such work shall be conducted by a mutually acceptable environmental consultant. Should any discharge, leakage, spillage, emission, or pollution or Environmental Liabilities of. any type occur upon or from said property due to GRANTEE's use and occupancy thereof, GRANTEE, at its expense, shall be obligated to reclaim said property to the satisfaction of any appropriate governmental body enforcing applicable law having jurisdiction thereover as soon as reasonably possible. • "Environmental Liabilities" shall mean any • investigation, notice, violation, demand, allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (i) pursuant to, or in connection with an actual or alleged violation of, any applicable law or, any environmental permit, (ii) in connection with any Release or handling or ,use of any Hazardous Materials, (iii) from any abatement, removal, remedial, corrective or response action taken under any applicable law or order of a governmental authority or (iv) from any actual or alleged damage, injury, threat or. harm to health, safety, natural resources, property, person, or the environment. "Hazardous Materials" shall mean: (i) any "hazardous waste" as defined by RCRA or under any applicable state analogue; (ii) any "hazardous substance" as defined by CERCLA and regulations promulgated thereunder or under any applicable state analogue; (iii) any petroleum- based products, by-products or waste materials; (iv) any other substance that under applicable law requires special handling or notification of any governmental authority in its collection, storage, transport, treatment, or disposal, including without limitation asbestos -containing materials and lead-based paint; and (v) any other chemical, substance or waste that is regulated under any applicable law. American Soda, LLP 10/28/2008 Within five (5) business days of any of the triggering events described in this paragraph below, GRANTEE shall notify GRANTOR in writing of, and provide any reasonably requested documents upon learning of, any of the following relating to the operations or activities of GRANTEE on or at said property: (1) any material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or any comparable state law relating to remediation of Releases; (2) any notice of a material Environmental Claim; (3) any material violation of an applicable law or material Release or threatened Release of a Hazardous Material; or (4) any environmental, natural resource, health or safety condition, which is not in compliance with applicable laws or environmental permits, and could reasonably be expected to cost in excess of $10,000 to remedy. In the event of any unpermitted or unauthorized Release of any Hazardous Substance on said property dining the term of this ROW not caused by or through GRANTOR, GRANTEE: (i) will immediately give written notice to GRANTOR of the Release; and (ii) with respect to any Release which: (a) is caused in whole or in part by GRANTEE (b) in any way arises from GRANTEE 's use of said property, GRANTEE, at GRANTEE'S sole expense, shall promptly remove and/or institute a remediation program in respect of such Release in accordance with the requirements of applicable law applicable thereto including,, without limitation, MI and timely cooperation by 'GRANTEE with all governmental authorities. All such notices required under this paragraph shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the GRANTEE's response thereto. In addition, GRANTEE agrees to provide GRANTOR with copies of all material written communications by the GRANTEE with any person or governmental authority relating to any of the matters set forth in above, as may reasonably be requested by GRANTOR. . GRANTOR hereby agrees that consideration received for this ROW fully compensates GRANTOR for all rights herein granted. GRANTOR represents and warrants that he is the owner in fee simple of the land herein described, subject only to outstanding mortgages, 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 said land and thereupon be subrogated to such lien and rights incident thereto. It is hereby understood that the parties securing this grant on behalf of GRANTEE are without authority to make any covenant or agreement not herein expressed and this ROW, as written, covers all agreements and stipulations, between the said parties, and no representations or statements, oral or written, have been made modifying, adding to, or changing the terms hereof, with the exception of Exhibit "B", which shall be attached hereto and by this reference made a part hereof. IN TESTIMONY WHEREOF, the GRANTOR, herein have executed this conveyance this 31243 day of Cx. 2008. GRANTOR: GRANTEE: ETC Canyon Pipeline, LLC By: Ir N e _John Michael Howard Title: Chief Operations Officer American Soda, LLP 10/28/2008 p. • THE STATE OF re X AS COUNTY OF 114 a S The foregoing instrument was acknowledged before me this,34stday of al-tJ 2008, before me, a not public, in and for said county and state, personally came the above-named /l;ebrt..( as ; ar, for American Soda, LLP who is personally known to me and known to f j An met be the identical person whose name is affixed to the above instrument to be his voluntary act and deed. IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the day and year above written. . My Commission Expires: c3 I I21 ao l • Jags- LcA_n_.s Notary Public and for The State of "re x9 S THE STATE OF TEXAS COUNTY OF BEXAS P✓ l.�Y+Y�YYl✓!✓1✓ll✓lll✓✓ll.A1 `' kT ir MARIE G JOHANSEN (k( IC NOTARY PUBLIC. STATE OF TEXAS S fi COMMISSION �Ve MARCH 12,E2012 i Id The foregoing instrument was acknowledged before me this day of—bele t rare -A, 2008, before me, a notary public, in and for said county and state, personally came the above-named John Michael Howard as Chief Operations Officer for ETC Canyon Pipeline, LLC who is personally known to me and known to me to be the identical person whose name is affixed to the above instiumentto be his volrintary act and deed. • IN WITNESS WHEREOF I have hereunto set my hand and affixed my notary seal the da ' d year above written. My Commission Expires: M kan.-an.1t, tot Z Joan t Notary Public State of a 4i My Commission' Expires: March 16, 2012 American Soda, LLP 10/28/2008 EXHIBIT `B" — LANDOWNER SPECIFIC STIPULATIONS GRANTEE agrees to the following stipulations: 1. Bury all pipe to a minimum of 36 -inches of cover, so as not to interfere with cultivation of soil. 2. Repair all fence crossings to as good' or better than previous condition. 3. ' Cease construction operations in excessively muddy conditions. 4. Any and all construction vehicles, equipment and materials, while not in use, shall be parked or placed in the ROW. • 5. All ROW and access roads shall be kept safe and in good order, and shall at all times be kept free of litter and debris caused as a direct result of GRANTEE'S activities. 6. Except for normal and routine maintenance and repair during construction activities, no construction equipment shall be repaired or maintained upon subject lands. No motor fluids will be disposed of on the subject lands; 7. All gates shall be left as they are found. Access must be coordinated with tenants, if any. 8. No firearms, pets, alcohol or illegal drugs shall, be allowed on the property at any time. 9. GRANTEE shall seed all disrupted areas with either ELM seed mix, or the seed-type(s) selected by • GRANTOR. 10. GRANTEE shall be responsible for weed control in all areas disturbed by GRANTEE throughout the term of this ROW. 11. Any large rocks (greater than 4" in diameter) excavated by GRANTEE shall be distributed or disposed of by GRANTEE as directed by GRANTOR. 12. The ROW shall be returned to the original topography, to the extent feasible, so that there are no permanent mounds, ridges, sinks or trenches. ' 13. All operations should be coordinated with tenants, if any, on a daily basis, or as near as possible. 14. Notice by either party hereto shall be promptly given orally, and if necessary or possible, confirmed . in writing and mailed to: GRANTOR: Solvay Chemicals, Inc. (American Soda, LLP) Attn; Marc Nuchelmans 3333 Richmond Avenue Office: 713-525-6827 Fax: 713-525-7807 With copies to: Solvay Chemicals, Inc. (American Soda, LLP) 2717 County Road 215 Parachute, CO 81635 Office: 970-285-0400 Fax: 970-285-6393 GRANTEE: ETC Canyon Pipeline, LLC 1600 Broadway, Suite 1900 Denver, Colorado 80202 (720) 225-4000 American Soda, LLP 10/28/2008 PAYMENT AGREEMENT This Payment Agreement, hereinafter referred to as Agreement is made and entered into this 3rd day of December 2008, by and between American Soda, LLP, as GRANTOR, and ETC Canyon Pipeline, LLC, as GRANTEE. WHEREAS, for good and valuable consideration GRANTOR has granted to GRANTEE the right to construct facilities under the attached Right of Way and Easement. NOW THEREFORE, GRANTEE agrees to pay GRANTOR a payment of $4.85/foot for a Right of Way and Easement estimated to be Z965 feet to fully compensate GRANTOR for all rights granted under the attached Right of Way and Easement for a total payment of $14,291.30, payable upon the execution hereof. This Payment Agreement shall not be recorded by either party. My distribution to tenants, heirs, creditors or others will be made at GRANTOR'S sole discretion • EXECUTED the date fast written above. GRANTOR: GRANTEE: American Soda, LLP ETC Canyon Pipeline, LLC < Ey: . Ey. ,,JR« N e: 7 hnMichael Howard 011- Title: Title:Chief Operations Officer Tax ID Number:. American Soda, LLP 10/28/2008