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HomeMy WebLinkAbout1.06 Deeds COMPLETE Article 4-203.B.2 Deeds, Easements, and Agreements Ursa Operating Company LLC Tompkins Injection Well OA Project No. 014-2878 SURFACE USE AND EASEMENT AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this .:Z4'rltday of f£.6«~ , 2011 ("Effective Date") by and between Thomas Lynn Tomp kin s, whose address is 269 County Road 309, ParachUe, CO 81635 hereinafter called "Owner", and Antero Resources Picea nce Corporation, whose address is 1625 17th Street, Denver, Colorado 80202, hereinafter called "Operator''. WHEREAS , the Owner is the owner of the surface of the lands described on Exhibit A and further depicted on Exhibit B attached hereto and made a part hereof for all purposes ("lands"); WHEREAS , Operator desires to utilize the Lands for the operations hereafter described , and Owner desires to allow such utilization ; WHEREAS. Owner and Operator desire to enter into this Agreement to stipulate the terms and conditions under which Owner will permit use of the lands by Operator. NOW, THEREFORE , in consideration of ten dollars ($10.00) and other good and valuable consideration in hand paid , receipt of which is hereby acknowledged , Owner and Operator agree as follows : 1. Surface Ownership. Operator desires to explore for and produce oil and gas and associated hydrocarbons on property owned by Owner and described on Exhib it A and Exhibit B attached hereto and made a part hereof for all purpose. Said oil and gas and associated hydrocarbons may be extracted from adjoining properties and produced through property owned by Owner . 2. Grant of Easement Owner hereby grants to Operator a right-of-way and easement on , over, through and across the Lands as approximately depicted on Exhibit B for the purpose of drilling , completing , operating and producing gas wells , conducting rese rvoir fracture stimulation operations , re -completing and monitoring wells therefore , together with the right-of-way and easement on , over , through and across the Lands necessary to construct operate , maintain and repa ir (including but not lim ited to) access roads , fluid retention reservoirs, well sites , tank batteries , co mpressors, electrical lines . facilities , pipelines (both water and gas), for both conducting operations and handling production from the Land s, as well as from other lands which Owner may not have an interest, which may be necessary for Operator to have a continuous and efficient pipeline system (such right-of-way and easement not to exceed fifty feet (50') during the construction pha se , and shall not exceed twenty-five feet (25') after the completion of con st ruction), pigging facilities , tanks , water discharge , and any other actions deemed necessary by Operator for its operations . Within 60 days after any pipeline is installed on the Lands, Operator will furnish to Owner an as-built plat showing the location of the pipeline. Owner agrees that Operator may file in the real property records of Garfield County , Colorado on behalf of Owner appropriate documentation evidencing the location of any pipelines on the La nds. 3. Notification . Operator shall no tify Owner prior to initial operations upon the Lands and shall consult with Owner regarding the location of the roads , well pads , and other facilities incident to Operators operations on the Lands. To the maximum extent commercially feasible, Operator will use existing roads on Owner's property for its Operations , and if construction of a new road is re quired , Operator will locate the new road in a manner so as to cause the least interference with Owner's operations on the affected lands. 4 . Termination of Rights. The rights granted by Owner to Operator relating to the exploration and development of hydroca rbons from the Lands shall terminate upon the permanent plugging and abandoning of the last well located on the Lands. or lan ds pooled or spaced therewith pursuant to the rules and regulations of the Colorado Oil and Gas Commissi on . The easements and rights-of-way granted herein relating to lands in which Owner does not have an interest, shall terminate if and when Operator shall cease to use such easements and rights-of-way for a period of 24 co nsecutive months without suspe nsion of use for regulatory reasons or events of force majeure. 5 . Nonexclusive Rights . The ri ghts granted by Owner to Operator are nonexclusive, and Owner reserves the right to use all access roads existing as of the date of this Agreement , or constructed at Owner's expense after the date of this Agreement , and all surface and subsurface uses of the lands affected by this Agreement and the right to grant success ive easements thereon or across on such terms as Owner deems necessary or advisable . 6. Payments. Consideration for use and damages for the rights granted hereunder shall be made as follows: a. Well Pad: $60 ,000 .00 for each well pad , not to exceed a working area of 3 acres in size . Initial payment of $40 ,000.00 due at the time of signing with the ba lance of $20,000 .00 payable upon commenceme nt of d rilling operations on the final four wells of a total of sixteen well to be drilled on the well pad . b . Access Roads : $2 .00 per linear foot for new roa ds (45' maximum width) or $1 .00 per linear fo ot for improved existing road c. Pipeline ROW: $6.00 per lin ea r foot ($2.00 per foot if located within Access Road Easement) 7. Mai ntenance . Operator shall at all tim es keep the well site and the roa d right-of-way saf e and in good o rd er, and free of noxiou s weeds , litter and debris . Operato r shall not permit the release or discharge of any to xic or hazardous chemicals or wastes on Owner's property . No seismic ope rati on s shall be permitted without written co nsent of Owner . 8. Produced Water. Surface di scharge of produced water will not be permitted on Owner's lands. 9 . Abandonment If th e Operator desires to plug and abandon the well(s) beca use the Operator determines the w ell is not capab le of com mercial production , t hen, in that even t , the Ope rator shall fill and level the location , re -contour the location , di stribute the topsoil , make the location ready for reseeding, and reseed th e area , and plug and abandon the well as required by applicable law and reg ulati ons. All cleanup and restoration requirements shall be com pleted by Operator within six months after the termin ation of final activities at the well si te . Page 1 of 5 10. Improvements . No fences , cattle guards or other improvements on Owner's property shall be cut or damaged by Operator without the prior written consent of Owner and the payment of additional damages or the institution of other safeguards to protect the rights and property of the Owner . Upon final termination of Operator's rights under this Agreement , Operator shall return all roads and other rights-of-way or sites as near as practical to the condition which they were in prior to the execution of this Agreement , unless a lower standard is otherwise agreed to by Owner. All disturbed areas caused by Operator's activities will be reseeded . Fences shall be restored as near as practical to the original condition unless otherwise agreed by Owner. 11 . Consideration . The payments herein provided are acknowledged by Owner as sufficient and in full satisfaction for damages to Owner caused or created by the reasonable and customary entry , rights-of-way and operation and use of the roads , well pads , and other facilities incident to Operators operations on the Lands, but do not include damage to livestock , buildings or improvements , or injuries to persons or to any damage or destruction caused to Owner's wells or water supply on the property. Operator shall be liable for damages if, as a result of its operations hereunder , any water on or under the prel11ises which had been potable is affected to the extent that it is rendered non-potable for humans, cattle or other ranch animals on Owner's premises , or any such water supply, well or reservoir be destroyed or its output diminished . Operator shall be liable for any downstream damage caused to other lands or the operations of other landowners . This Agreement does not relieve Operator from liability due to Operator's negligence or due to spills or discharges of any hydrocarbon or toxic or hazardous chemicals or wastes , or from leaks or breaks in Operator's pipelines. Damage to livestock and damage to crops shall be paid for by Operator at current market value . Any fires caused by Operator's personnel , agents , or assigns shall be paid for by paying the cost of replacement pasture , plus replacement and/or repair costs for all personal property destroyed or damaged . The cost replacement pasture will be determined by the amount generally accepted in the area for like kind pasture . 12. No Warranty. Owner makes no warranty of title in entering into this Agreement; provided , however, if it is determined that Owner does not have the right to authorize Operator to use the lands affected by this Agreement for the purposes set forth herein, then Operator's sole remedy shall be to recover from Owner those payments made by Operator for the rights which Owner did not have the right to grant to Operator. 13. Non-disturbance. Operator and its employees and authorized agents shall not disturb , use or travel upon any of the land of Owner not subject to this Agreement. 14. Firearms and Explosives. None of the Operator's employees or authorized agents or any other person under the direction or control of Operator shall be permitted to carry firearms or any weapon while crossing the Lands , and such persons shall not hunt or fish on Owner's property and shall not trespass on Owner's property for the purposes of hunting or fishing or recreational uses. No explosives shall be used the Lands . Operator will notify all of its contractors , agents and employees that no firearms , weapons , hunting , fishing or recreational activities will be allowed on Owner's property. 15. Water. Operator shall not use any water from existing wells , reservoirs and springs on Owner's property, without Owner's prior written consent. Operator shall not disturb, interfere with , fill or block any creek, reservoir , spring or other source of water on Owner's property. 16. Enforcement Costs. If Operator defaults under this Agreement, Operator shall pay all costs and expenses , including a reasonable attorney's fee , incurred by Owner in enforcing this Agreement. 17 . Time. Time is of the essence in this Agreement. 18. Indemnification. To the maximum extent permitted by law, Operator will indemnify, defend and hold Owner , and if applicable , Owner's officers, directors, employees, agents , successors and assigns harmless from any and all claims , liabilities, demands , suits, losses, damages and costs (including, without limitation , any attorney fees) which may arise out of, or be related to Operator's activities on Owner's property (including , without limitation , any claims that Operator's operations hereunder are either illegal , unauthorized , or constitute an improper interference with any party's rights , or have damaged the lands or operations of adjacent landowners and including any claims based on the alleged concurrent negligence of Owner). 19. Compliance with Law. Operator shall conduct operations and activities in accordance with existing local , state and federal laws , rules and regulations . 20. Release. To the maximum extent permitted by law, Operator releases and waives and discharges Owner, and , if applicable, Owner's officers , directors , employees, agents, successors and assigns from any and all liabilities for personal injury, death , property damage or otherwise arising out of Operator's operation under this Agreement or use of Owner's property. 21 . Notice. Notice may be given to either party to this Agreement by depositing the same in the United States mail , postage prepaid , duly addressed to the other party at the address set out below the party's signature on this Agreement. Such notice shall be deemed delivered when deposited in the United States mail. 22. No Recording of Agreement. This Agreement shall not be recorded . The parties agree, however, that a Memorandum of Surface Use and Easement Agreement be executed with this Agreement and Operator shall be entitled to record this document. 23 . Construction of Agreement. This Agreement shall be construed under the laws of the State of Colorado. 24. Assignabililty and Binding Effect. This Agreement is ass ignable by Owner or Operator, and will be binding upon the successors and assigns of the parties . [SIGNATURE PAGE FOLLOWS} Page 2 of 5 In witness whereof, Owner and Operator have executed this Agreement effective the day mentioned above regardless of the date of execution . OPERATOR: Antero Resources Piceance Corporation By: g~d.&Z~ Brian A. Kuhn , Vice President ACKNOWLEDGMENTS STATE OF COLORADO COUNTY OF 6A£f lta D ) ) ss ) The foregoing instrument was subscribed and sworn to before me on fl£f2 d-1 Tompkins. My commission expires: 1)12!2 (7 1 ~1""2.._ Witness my hand and seal. r-----~D~AV~I~D-M-S~T~R-IC_KU __ N----~ NOTA RY PUBLIC STATE OF COLORAD O MY COMMISSION EXPIRES 11/13/2012 STATE OF COLORADO COUNTY OF DENVER ) ) ss ) Notary Public The foregoing instrument was subscribed and sworn to before me on Marc,¥\ I 0 Vice President of Antero Resources Piceance Corporation. My commission expires : I ~JW{20lf Witness my hand and seal. SARAH HOLZER Notary Public State of Colorado - ... Page 3 of 5 , 2011 , by Thomas Lynn , 2011, by Brian A . Kuhn, EXHIBIT A Attached to and made a part of that certain SURFACE USE AND EASEMENT AGREEMENT dated fchriMC'j '21-\ , 2011 , by and between , Thomas Lynn Tompkins ("Owner") and ANTERO RESOURCES PICEANCE CORPORATION ("Operator"), the ''Lands" covered by and referred to in the foregoing agreement including the following described land located in Garfield County , Colorado, more particularly described as follows: Township 7 South, Range 95 West of the 61h P.M . Section 5: S1 /2NESESE, S1/2SESE AKA Parcel #240705400085 of the Garfield County Assessor's Records , Garfield County , Colorado . Page 4 of 5 EXHIBIT 8 Attached to and made a part of that certain SURFACE USE AND EASEMENT AGREEMENT dated ~ bf~o.C'j 2'i_ 2011, by and between , Thomas Lynn Tompkins ("Owner") and ANTERO RESOURCES P ICEANCE CORPORATION ("Operator"). Page 5 of 5