RESOLUTION NO. 2018-046

RESOLUTION APPROVING A PIPELINE RIGHT-OF-WAY

GRANT WITH DISCOVERY DJ SERVICES, LLC(BOX ELDER PROPERTY, WELD COUNTY, COLORADO)

WHEREAS, as part of its long term water program, the Town purchased the Box ElderFarm property, located in Weld County, Colorado ("Property"); and

WHEREAS, Discovery DJ Services, LLC has requested an easement over a portion of theProperty to construct two pipelines and related appurtenances for the transportation of gaseouspetroleum products; and

WHEREAS, the Tovm has agreed to grant Discovery DJ Services, LLC such easement,and Discovery DJ Services, LLC has agreed to compensate the Town in the amount of $42,300 asconsideration for the easement; and

WHEREAS, Section 14.02.040.B of the Castle Rock Municipal Code requires TownCouncil approval of the easement by resolution when compensation or material consideration isreceived for such easement.

NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THETOWN OF CASTLE ROCK, COLORADO AS FOLLOWS:

Section 1. Approval. The Pipeline Right-of-Way Grant in the form attached asExhibit 1 is hereby approved. The Mayor and other proper Town officials are hereby authorizedto execute the agreement by and on behalf of the Town of Castle Rock, Colorado.

PASSED, APPROVED AND ADOPTED this 15th day of May, 2018 by Ae TownCouncil of the Town of Castle Rock, Colorado, on first and final reading by a vote of CO for and

-0. against.

ATTEST:

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Approved as to form: %^^^^^^^^Approved as to content:m

TOWN OF CASTLE ROCK

QjtVU/1y(iJemtiier Green, ayor

ovm Attomey^^^/)^^^ ,^<e,»^^^^?fark Marlowe, Director oFC'astle Rock Water

PIPELINE RIGHT-OF-WAY GRANT

15^DATE: ,2018.

GRANTOR: TOWN OF CASTLE ROCK, a Colorado municipal corporation, acting by andthrough the Town of Castle Rock Water Enterprise, ICQ N. Wilcox Street, CastleRock, Colorado 80104.

GRANTEE: DISCOVERY DJ SERVICES, LLC, a Texas limited liability company, 2859Walnut Hill Lane, Suite 335, Dallas, Texas 75230.

RECITALS

A. Grantee has determined it needs to acquire (i) a non-exclusive temporaryconstruction easement over property owned by Grantor for the purpose of constructing twopipelines and related appurtenances for the transportation of gaseous petroleum products(collectively, the "Pipelines") and (ii) a non-exclusive permanent easement for the purpose ofoperating, inspecting, maintaining, protecting, repairing, replacing and removing the Pipelines.Collectively, the temporary construction easement and permanent easement shall be referred to asthe "Easement."

B. The parties have agreed to the terms and consideration for the grant of theEasement.

TERMS

1. Grantor, in consideration of Forty-two Thousand, Three Hundred and 00/100Dollars ($42,300) and other good and valuable consideration, the receipt and sufficiency of whichis acknowledged by Grantor, grants to Grantee, its successors and assigns, a non-exclusivetemporary construction easement and a non-exclusive permanent easement in gross, in, over, upon,across and under the property located in Weld County, Colorado as further described in theattached Exhibit A (the "Easement Property"), together with the right of ingress and egress to andfrom said Pipelines, on over and across land and adjacent land owned by Grantor.

2. Grantee acknowledges the Easement Property is encumbered by the Pipeline Right-of-way Grant between Grantor and Cureton Midstream, LLC ("Cureton"), dated September 5,2017, recorded in the Weld County public records on September 29, 2017 at Reception No.4340318 (the "Prior Easement Agreement"). The grant of this Easement and all rights conferredupon Grantee is subordinate to the rights of the grantee and its successors and assigns under thePrior Easement Agreement. Accordingly, in the construction and maintenance of the Pipelines,Grantee shall exercise reasonable and diligent care to assure that the pipelines and facilities ofCureton under the Prior Easement Agreement are not adversely affected. Grantee agrees tocomply with the conditions set forth in Cureton's letter dated April 27, 2018, attached as ExhibitB. Grantee shall give reasonable notice to Cureton Grantee's construction plan for the Pipelines.

3. It is agreed that the Pipelines, authorized under this grant, shall be constructed aminimum depth of forty-eight (48) inches below the surface of the ground to permit normalcultivation at the time of construction, and Grantor shall have the right to fully use and enjoy theabove described premises subject to the rights herein granted. The final location of the pipelineshall be clearly marked utilizing carsonite posts at the entrance and exit of the Grantor's propertyand every 500 lineal feet along the pipeline route.

4. Grantee shall design and construct the Pipelines in conformance with 49 CFR 192and ASME B31.8 and follow all safety requirements contained therein.

5. Grantee agrees to reclaim those lands disturbed during construction as nearly aspracticable to its original condition and reseed the same as soon as possible. Upon completion ofthe Pipeline installation and reseeding activities, said temporary construction easement grantedshall terminate.

6. In the event Grantor, as part of its development of its facilities located on Grantor'sproperty, determines that it is necessary to relocate the pipeline in order to accommodate municipalwater facilities. Grantor shall provide Grantee with an alternative easement location reasonablyacceptable to Grantee on Grantor's property and Grantee shall relocate its line, at its sole expense.

7. Grantee shall have the right to clear all trees, undergrowth and other obstructionsfrom the herein granted permanent right-of-way, and Grantor agrees not to build, construct orcreate any buildings, structures or engineering works on the herein granted right-of-way that willinterfere with the normal operation and maintenance of said line.

8. Except in the event of an emergency. Grantee shall provide Grantor with 48-hours'notice prior to entering onto Grantor's property to access the Easement Property. In addition.Grantee shall maintain access to Grantor's property at all times during construction, reconstructionand maintenance of the pipeline.

9. Grantee shall operate and maintain the Pipelines in compliance with all federal,state and local regulations and in accordance with all industry standards. Grantor shall properlyremediate any hazardous material or other environmental contaminants introduced into the groundas a result of operation or the Pipelines. In the event of a pipeline failure, any clean up and/ormitigation shall be performed in compliance with all applicable federal, state and local laws andregulations, at no cost to Grantor.

10. Grantee agrees to pay to the owners and to any tenant, as their interests may be, anyand all damages to crops, timber, fences, drain tile, or other improvements on said premises thatmay arise from the exercise of the rights herein granted; provided, however, that after the Pipelineshave been constructed hereunder. Grantee shall not be liable for damages caused on the easementby keeping said easement clear of trees, undergrowth, and brush in the exercise ofthe rights hereingranted. Any payment due hereunder may be made direct to the said Grantor or any one of them.

The initial consideration paid by Grantee to Grantor includes any and all damages that may besustained by original construction of the pipeline within the easement area, including withoutlimitation, cutting trees and damages to surface, fences or any other property owned by Grantor.If the property is leased. Grantee will settle actual damages with the tenant.

11. In the event the Pipelines herein provided for shall be abandoned or inactive forone (1) calendar year, this Easement shall become null and void; provided that the abandonmentfor non-use is not the direct result of war. Acts of God, rules or regulations promulgated by anygovernment body, federal or state having jurisdiction thereof. Should Grantee discontinue the useof one or both the Pipelines within the Easement Property for (12) consecutive months. Granteeagrees to take all actions necessary to render the Pipeline(s)environmentally safe and fit forabandonment in place. All such cleanup and mitigation shall be performed in compliance with allapplicable federal, state and local laws and regulations. Grantee further agrees to hold Grantorharmless and indemnify Grantor from any environmental risks associated with abandonment ofthe pipeline, now for in the future. Upon completion of the pipeline abandonment in place. Granteewill execute and deliver to Grantor in a timely manner a Release of Right of Way Grant for theportion of the Right of Way lands so abandoned.

12. Grantee further agrees that, if at any time, the pipeline settles or causes any settlingin the area of the pipeline, it will make all necessary repairs at Grantee's sole cost and expense andpay damages to crops within a reasonable period of time.

13. Grantee shall have the sole obligation to maintain the pipeline and shall otherwiseassume and be solely responsible for any and all liabilities and obligations associated with theownership, operation, maintenance and repair of the pipeline. Grantee shall indemnify Grantorfrom any and all liability, costs, expense, or attorney's fees incurred as a result of Grantee'sexercise of rights under this agreement. Grantee shall obtain and keep in full force and effectcommercial general liability insurance applicable to all claims for personal injury and/or propertydamage occurring from the use and occupancy of the Easement Property by Grantee, itsemployees, contractors and agents, covering actions and activates authorized under this agreementin an amount not less than $1,000,000 per occurrence. In addition, such insurance shall nameGrantor as an additional insured.

14. The grant is made in consideration that Grantee, it's successors and assigns, shallhold Grantor, it's successors and assigns, harmless from damages or liability of any characterwhich may arise out of the exercise of the rights herein granted.

15. The terms, conditions, and provisions of the contract shall extend to and be bindingupon the heirs, executors, administrators, personal representatives, successors, and assigns of theparties hereto.

GRANTOR:

TOWN OF CASTLE ROCK, acting by andthroughjjie TOWN OF CASTLE ROCK WATER ENTERPRISE

David L. Corliss, Town Manager

STATE OF

COUNTY OF

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On this IS day ofpublic, personally appeared Davffl L. (

_ in the year 2018, before me, the undersigned notaryCorliss, Town Manager of the Town of Castle Rock, known

to me to be the persons whose names are subscribed to the within instrument, and acknowledgedthat they executed the same for the purposes therein contained.

In Witness Whereof, 1hereuntc^et my hand^acknowledged before me this fo day of

d official seal. The foregoing instrument was2018.

aa^nd ottici

My commission expires:

(seal)

Notary PublicGRANTEE:

DISCOVERY DJ SERVICES, LLC,a Texas limited liability company

By:

Its:

ROBERTA SCHONHERNOTARY PUBLIC

STATE OF COLORADONOTARY ID 20154023585

MY COMMISSION EXPIRES JUNE 16,2019

STATE OF )

) ss.

COUNTY OF )

On this day of in the year 2018, before me, the undersigned notarypublic, personally appeared as forDiscovery DJ Services, LLC, a Texas limited liability company, known to me to be the personswhose names are subscribed to the within instrument, and acknowledged that they executed thesame for the purposes therein contained.

In Witness Whereof, 1 hereunto set my hand and official seal. The foregoing instrument wasacknowledged before me this day of , 2018.

My commission expires:

(seal)

Notary Public

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DESCRIPTION - RIGHT OF WAY LANDS

A PORTION OF LOT B. RECORDED EXEMPTION NO 1473-25^-RE-3276, ACCORDING TO THE MAP ORPLAT THEREOF FILED FOR RECORD IN THE OFFICE OF THE WELD COUNTY CLERK AND RECORDER

AT RECEPTION NO 2954449, SAID LOT B LOCATED IN THE SOUTHEAST OI«-OUARTER OF SECTION25. TOWNSHIP 01 NORTH, RANGE 65 WEST OF THE 6'" PRINCIPAL MERIDIAN, COUNTY OF WELD,STATE OF COLORADO DESCRIBED AS FOLLOWS

PERMANENT PIPELINE RIGHT OF WAY

A 20 00 FOOT WIDE STRIP, BEING 10 00 FEET. AS MEASURED PERPENDICULAR, LEFT AND RIGHT OFTHE FOLLOWING DESCRBED CENTERLINE:

COMMENCING AT THE EAST ONE-QUARTER CORNER OF SAID SECTION 25 BBNG AN ILLEGIBLE 2,5INCH ALUMINUM CAP, THENCE SOUTH 89''22 23' WEST, ALONG THE NORTH LINE OF SAID LOT B

AND THE NORTH LINE OF THE SOUTHEAST ONE-QUARTER OF SAID SECTION 25, A DISTANCE OF13002 3 FEET TO POINT OF BEGINNING;

THENCE OVER ANDACROSS SAID LOTB THE FOLLOWING TWO (2) COURSES ANDDISTANCES;

1 SOUTH 00*37'4r EAST A DISTANCE 61 79 FEET;

2 SOUTH89"22'16-WESTADISTANCEOF1349 06FEET, MORE OR LESS TO THE WEST LINE OF

SAID LOTB, THE WEST LINE OF THE SOUTHEAST ONE-QUARTER OF SAID SECTION 25 AND

THE POINT OF TERMINUS, FROM WHICH THE CENTER ONE-QUARTER CORNER OF SAIDSECTION 25 BEING A 2 INCH ALUMINUM CAP MARKED PLS 25937 BEARS, NORTH 00*19 07-

WEST A DISTANCE OF 61 84 FEET

THE SIDELINES OF THE HEREIN DESCRIBED RIGHT OF WAY ARE SHORTENED OR LENGTHENED TO

MEET AT ANGLE POINTS AND TO TERMINATE ON THE NORTH AND WEST LINES OF SAID LOT B

THE TOTAL LENGTH OF THE ABOVE DESCRIBED CENTERLINE IS 1410 85 FEET, CONTAINING 0 648

ACRES (28217 SQUARE FEET) OF LAND. MORE OR LESS

THE ABOVE DESCRIBED PERMANENT PIPELINE RIGHT OF WAY IS INTENDED TO LIE COMPLETELY

WITHIN THE EXISTING 20' MEMORANDUM OF GRANT OF RIGHT OF WAY AND EASEMENT

AGREEMENT GRANTED TO CURETON MIDSTREAM LLC FILED FOR RECORD W J»E OFFICE OF THE

WELD COUNTY CLERK AND RECORDER AT RECEPTION NO 4340318

NOTES

1, SEE THE ATTACHED EXHIBIT "A" BY WHICH THIS REFERENCE IS MADE PART HEREOF.

2, THIS DESCRIPTION WAS PREPARED WITHOUT THE BENEFIT OF A TITLE COMMITMENT, THEREFOREACKLAM, INC HAS NOT RESEARCHED OR SHOWN ANY OTHER EASEMENTS, RIGHTS OF WAY. VARIANCESAND OR AGREEMENTS OF RECORD EXCEPT AS SHOWN HEREON

3, BEARINGS SHOWN HEREON ARE BASED ON GPS OBSERVATIONS AND/OR THE ONUNE POSITIONINGUSER SERVICE OFFERED BY THE N G.S AND PROJECTED TO "COLORADO COORDINATE SYSTEM OF 1983NORTH ZONE" (C R S 38-52-105 & 106)

4, DISTANCES SHOWN HEREON ARE IN US SURVEY FEET GRID, THE COMBINED FACTOR USED TO OBTAINTHE GRID DISTANCES IS 0 999725885

5, THE BASIS OF BEARINGS FOR THIS SURVEY IS THE NORTH LINE OF THE SOUTHEAST ONE-QUARTER OFSECTION 25, TOWNSHIP 01 NORTH, RANGE 65 WEST OF THE 6TH PM, SAID UNE BEING MONUMENTEDON THE WEST BY THE CENTER ONE-QUARTER CORNER OF SAID SECTION 25, BEING A 2 INCH ALUMINUMCAP MARKED PLS 25937 AND ON THE EAST BY THE EAST ONE-QUARTER CORNER OF SAID SECTION 25,BEING AN ILLEGIBLE 2 5 INCH ALUMINUM CAP AND BEARS NORTH 89' 22 23- EAST

PROJ NO 170013

PREPARED BY DOUGLAS W CHINNDATE PREPARED 12/14/17

FOR AND ON BEHALF OF ACKLAM, INC

195 TELLURIDE ST , SLATE 7, CO 80601X3 659.6267i/(X)i] CO we (naiocx town of cAsxee RO<x mv B4>aFWWTtO F.-y/Olfl/FaOOAUSMnWad

REVISIONS

NO DATE BY DESCRIPTION

B a^s/is SMF ROUTE REVISION

PAGE 2 OF 2

CURETONMIDSTREAM

April 27, 2018

Matthev\/J. Benak, P.E.

Water Resources ManagerCastle Rock Water

175 Kellogg CourtCastle Rock, CO 80109

Mr. Benak:

518 1V» ST. Ste. 650

Denver, CO 80202Phone: 303-519-7246

Per your request on April 25, 2018, Cureton has been informed that Discovery Midstream isproposing to construct (2) pipelines in the same 20' non-exclusive easement granted toCureton. At this time, Cureton has completed construction on (1) pipeline, which is locatedin Section 25 of TIN R65W of Weld County, Colorado.

As discussed. Discovery is proposing to install (1) pipeline being b'-T to the North ofCureton's existing pipeline and install (1) pipeline being 5'-7" to the South of Cureton'sexisting pipeline, for a total of (2) pipelines.

Cureton requests that Discovery provide a stamped and certified plat of the proposedpipeline, as well as a proposed alignment prior to being approved by the City Council. In theevent Discovery crosses Cureton's existing line, Cureton requests 14 day notification begiven, so a company representative can witness the crossing with at least 18" of separation.Furthermore, Cureton also requests that Discovery provide Cureton with an as-built plat andalignment within 30 days after construction is complete.

Sincerely,

Cole Ones

Senior Project Manager