This SURFACE USE AND DAMAGE AGREEMENT AND EASEMENT form
was used by Evergreen for CBM Development in Kansas
(circa January 2004)
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SURFACE USE AND DAMAGE AGREEMENT AND EASEMENT
THIS SURFACE USE AND DAMAGE AGREEMENT AND EASEMENT
(this
"Agreement"), is made and entered into this
day of
by and
between
, (hereinafter referred to as
"Landowner"), and Evergreen Operating
Corporation, 1401 17th Street, Suite 1200, Denver,
Colorado 80202 (hereinafter referred
to as "Operator"):
WHEREAS, Landowner is the owner of and is in possession of the following
described lands (the "Subject Lands"), situated in
County, to wit:
WHEREAS, Evergreen Resources, Inc. is the owner of an oil and gas lease(s) (the
"Lease(s)") which covers all or part of the Subject Lands; and
WHEREAS, Operator intends to enter upon the Subject Lands to conduct operations for exploration, drilling,
production, marketing, treating, removal and transportation of oil, gas, coalbed methane gas, and all
associated hydrocarbon substances produced in association therewith (collectively,
"Hydrocarbons") from the Subject Lands and from other lands in the vicinity of the Subject
Lands, and/or to drill, install, equip and operate a well or wells for the disposal of water
produced in the operations of Operator; and
WHEREAS, Operator intends to stake one or more wells ("the Well(s)") and/or
water disposal wells ("the Disposal Well(s)") on the Subject Lands; and
WHEREAS, Operator intends to construct upon the Subject Lands an access road
or roads and/or to use existing roads or tracts located on the Subject Lands, ("Road(s)"),
and to construct drilling locations and wellsites, reserve pits, and in the event of
production (either from the Subject Lands or adjacent
lands), tank batteries, compression facilities, dehydration facilities, separation
equipment, and to install and construct flow
lines and gathering system lines ("Pipelines")
for the transportation of Hydrocarbons, or water ("Water Lines"); and
WHEREAS, Operator and Landowner desire to enter into
this agreement, and to provide for assurances by the parties concerning
Operator's operations and to grant Operator certain rights of way and
easements for the foregoing purposes.
NOW, THEREFORE, for and in consideration of the sum of
TEN DOLLARS ($10.00) and other good arid valuable considerations, the
receipt and sufficiency of which are hereby acknowledged by Landowner, the
parties hereto agree as follows:
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A)
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Landowner hereby grants unto Operator, its
agents, employees, contractors, invitees, licensees, representatives
and assigns, ingress to, egress from and the right to enter upon and
use the surface estate of the Subject Lands, together
with an access
route or routes thereto for the unrestricted transportation of
vehicles, materials, equipment, personnel and products to and from the
location(s) at which the Well(s) will be drilled ("Wellsite(s)")
and to and from
the location(s) at which the Disposal Well(s) will be
drilled ("Disposal Wellsite(s)") and to and from and across
the Subject Lands for access from or
to adjacent lands. |
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B) |
Operator agrees to pay to Landowner and Landowner
agrees to accept a one time payment of $400.00 per Well drilled by
Operator upon the Subject Lands for drilling, completing, equipping
and producing the Well(s). The acreage allocated to each Wellsite
location shall be approximately 200' by 125'. Landowner further grants
Operator an easement, right-of-way and permission
Page 1 of 5
to install facilities on the Subject Lands
for gas compression or more
advanced gas processing, such as
booster plants, separation equipment, dehydration plants,
and other facilities that are necessary in connection with
the production and marketing of Hydrocarbons. Landowner will
be furnished with a survey plat showing the Wellsite
location(s) following the staking of
such locations.
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C) |
For the drilling, installation,
equipping, operating, repairing and maintenance
of any
Disposal Well, Operator agrees to pay to Landowner and
Landowner agrees to accept, a one time payment of $400.00
for so long, and only for so long, as Operator uses the
Disposal Well for the disposal of water from its operated
wells. The acreage allocated to each Disposal Wellsite shall
be approximately 200' by 125'. The acreage allocated for
both a Wellsite and Disposal Wellsite on the same pad shall
be approximately 300' by 250'. Landowner agrees that
Operator shall have the right to use the Disposal
Well(s)
for the disposal of water from any of Operator's operated
wells on or
off the Subject Lands. Landowner will be
furnished with a survey plat
showing the Disposal Wellsite
location(s) following the staking of such
locations.
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D) |
Landowner hereby grants Operator an
easement and right of way to construct and use the Road(s)
for ingress to, egress from and access upon the
Wellsite(s),
Disposal Wellsite(s), or adjacent lands. Operator agrees to
pay Landowner and Landowner agrees to accept, for use of any
new Road constructed on the Subject Lands, or for the use of
any existing Road which is not primarily maintained by
governmental entities, necessary for ingress to,
egress from
and access upon the Wellsite(s), the Disposal Wellsite(s),
or for other access for the purposes of this Agreement, a
one time payment of $3.00 per rod for the easement,
right-of-way and damages; provided Operator may use Roads
existing at the time of this Agreement, if primarily
maintained by governmental entity, without any payment, as
long as Operator maintains such Roads as a result of
Operator's usage in at least as good a condition as such
roads are found prior to Operator's use. Notwithstanding any
provision contained herein to the contrary, Operator agrees
that no new Roads shall be located within 200 feet of the
presently existing residence or outbuildings on
the Subject
Lands, and that Operator shall cause no traffic on the
portion of Landowner's Roads which are situated within said
200 feet of such presently existing structures without
Landowner's permission. This restriction shall not
be
effective as to publicly maintained roads. In order to
control dust on the access roads, Operator is granted the
right to dispose produced water from the Well(s) on any new
road or trail constructed on the Subject Land or on any
existing road that is not maintained by governmental
entities. If necessary, Operator is granted the right, but
not the obligation, to hard surface said roads for year
round use. Landowner shall have the right, at his own risk,
to use any road constructed by Operator so long as the use
thereof does not interfere with Operator's use thereof.
Operator shall not interfere with Landowner's
reasonable use
of such road.
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E)
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Landowner hereby grants Operator an
easement and right of way for ingress
to, egress from and access upon the
Subject Lands for the installation, construction, operation,
maintenance, repair, usage, replacement and removal
of
Pipelines and Water Lines, for the movement of Hydrocarbons
and water whether produced from the Subject Lands or from
other lands. Operator
agrees to pay Landowner and Landowner
agrees to accept, for any Pipelines
or Water Lines installed
by Operator, the sum of $10.00 per rod for the right- of-way
and damage therefore as a one-time payment ("ROW
Fee") to cover
the installation, construction,
operation, maintenance, repair, usage,
replacement and
removal of the Pipelines and Water Lines. Placement of
multiple Pipelines, or placement of Water Lines with
Pipelines, along the
same right-of-way shall be subject to
only one ROW Fee. The foregoing easement and right of way
includes the right to install, construct, maintain,
repair
and replace one or more electrical lines necessary for the
operation of
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Operator's equipment and
facilities. Electrical lines or Water Lines placed
within
Road rights-of-way or along Pipeline rights-of-way shall not
be subject
to any fees for such placement or rights-of-way.
It is understood that all Pipelines, Water Lines and
electrical lines will be placed in consultation with
the
Landowner to cause the least amount of disturbance, and the
most benefit,
to Landowner's land use. Unless otherwise
required in the Leases, all
Pipelines. Water Lines and
underground electrical lines constructed by
Operator shall,
at the time of construction thereof, be buried to a depth
not less than plow depth as measured from the surface above
the pipeline to the top of the pipeline, except if rock or
other impenetrable substances make burial to
the foregoing
depth impractical, Operator shall have the right to bury the
pipelines to such lesser depth as is practical; and provided
that at the option of Operator, such line or lines may be
placed above the channel of any stream, ravine, ditch or
other water courses. After payment of the ROW Fees for
Pipelines and Water Lines, and the initial installation of
such Pipelines and
Water Lines, it is understood that in the
course of subsequently installing, additional Pipelines or
Water Lines in the same right-of-way, or in routine
maintenance of existing lines, that Operator, may damage
crops. As to any
such crop damage by Operator occasioned
after the initial installation of a Pipeline or Water Line,
Operator agrees to reimburse Landowner the actual market
value of the portion of planted crops that are destroyed by
Operator.
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F) |
The easements granted
herein are more specifically identified as a strip of land
measuring 50 feet in width, in total for the easements for
the Roads, Pipelines, Water Lines and electrical lines
("Entire Easement"), of which a strip of land
measuring 20 feet in width shall be the easement for the
Roads ("Road Easement"), and shall ordinarily
extend 25 feet on each side of the Entire Easement
centerline and 10 feet on each side of the Road Easement
centerline. The location and dimensions of the easements
shall be established by a
survey, a copy of which shall be
furnished to Landowner upon construction of
the initial
Roads, and will be modified, from time to time, as
additional Roads, Pipelines arid Water Lines are constructed
and installed.
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G) |
The sum of the payments set forth above
shall also constitute payment in full
for damages incurred,
including crop damages, in the drilling, completing,
operating, and equipping of Wells, Disposal Wells, laying of
Pipelines, Water Lines and electrical lines (except for
subsequent Pipelines, Water Lines and electrical lines in
the same right-of way), the setting of tank batteries, the
digging or building of catch, storage or overflow pits of
every kind and
character whatsoever, the building of Roads,
and the erecting of poles and
lines for carrying electrical
power to said Well(s) or the Disposal Well(s)
across the
Subject Lands, or across any other lands adjacent thereto,
owned by Landowner. The Landowner hereby covenants and
agrees to account to any other persons legally due any
portion of the monies herein paid for damages.
No additional
damages or reimbursement shall be made for any crops
damaged
or lost within the land area allotment for particular
Wellsites,
Disposal Wellsites, Roads, or facilities (other
than Pipelines, Water Lines or electrical lines) after such
are installed hereunder. Although Landowner may
plant crops
within the allotted land area, and Operator shall endeavor
to not damage same beyond what is reasonably necessary for
carrying out Operator's purposes hereunder, Landowner
nevertheless plants crops within such areas at his own risk.
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H) |
In addition to the above consideration,
Operator, it's successors and assigns, agrees to pay actual
damages to crops, fences, livestock, timber, and penalties
assessed against CRP Lands, as well as damages to the
surface of said lands,
to the extent not located within the
areas granted for Wellsite(s), Disposal Wellsite(s), Roads,
Pipelines, Water Lines or electrical lines caused by or
resulting from operations of Operator or its agents in
connection with the location, drilling, completion,
production and/or abandonment of the subject
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Well(s) or Disposal Well(s), except to the
extent that such damages are
included in any payments
described above.
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I) |
This agreement includes
the right for Operator, at its option, to drill a water
well
on the Subject Lands, which would be used in the drilling of
any of Operator's wells on or off the Subject Lands.
Operator shall not use any
surface or underground water
which has been developed from or upon the Subject Lands or
is presently in use by Landowner, unless Landowner's
consent
is first obtained, and in the event consent is given,
Operator and Landowner shall mutually agree upon the
compensation Operator shall pay Landowner for the right to
use such water.
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All payments required to be made
pursuant to this Surface Use and Damage Agreement and Easement
shall be mailed or delivered to Landowner at the address stated
above, unless notice of change of address is given to Operator in
writing. Payments for
the drilling of the Well(s) and/or the
Disposal Well(s) will be due on the date that
Operator commences
the drilling of any such well. Compensation for the surveyed roads
and pipeline rights-of-ways and easements will be paid within 30
days after completion
of construction of any such road or
pipeline. If Landowner owns less than 100 percent of the surface
ownership as to lands covered hereby, then as to such lands the
payments hereunder shall be proportionately reduced as to the
percentage of surface interest owned.
If Landowner believes that Operator is in
default under any provision of this Agreement, as a condition
precedent to Landowner initiating any legal proceeding, Landowner
shall first give at least 30 days advance written notice to
Operator specifying
the default claimed by Landowner. In the event
of a dispute with respect to any matters arising out of this
Agreement as to its terms and conditions or as to payment for any
damages or losses incurred by Landowner whether or not the same
were contemplated by this Agreement, Landowner agrees that
Operator will not be prevented, in any manner,
from carrying on
its operations upon the Subject Lands pending settlement of such
dispute.
Operator will conduct its operations on the
subject lands in accordance with applicable federal, state or
county governmental laws, rules and regulations. Upon termination
of all operations contemplated herein on the Subject Lands,
Operator agrees that it will restore all areas used or occupied,
in compliance with all applicable federal,
state or county
governmental laws, rules and regulations and governmental or
judicial
orders which may be in effect at the time of the
execution of this Agreement.
This Agreement shall remain in effect for so
long as Operator uses the Subject Lands for the purposes herein
described and/or the Oil and Gas Lease remains in effect. Upon
termination Operator shall have a reasonable period of time to
remove from the Subject Lands any above-ground structures or any
other above-ground improvements which may have been placed on the
Subject Lands by Operator, and, at Operator's
option, to remove
any Pipelines, Water Lines and other buried facilities.
Landowner represents and warrants that he is the
owner in fee simple of the
Subject Lands, subject only to
outstanding mortgages and rights of way, if any, now of record in
said county, and in the event of default by Landowner, Operator
shall have the right to discharge or redeem for Landowner, in
whole or in part, any mortgage, tax or
other lien on the Subject
Lands and thereupon be subrogated to such lien and rights
incident
thereto.
This Agreement shall be binding upon the parties
hereto, and upon their devisees, personal representatives, heirs,
successors and assigns. This Agreement and the rights of
the
parties may be assigned in whole or in part.
This Agreement may be executed in counterparts,
with the same force and effect
as if all parties had executed the
same instrument.
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IN WITNESS WHEREOF, this
instrument is executed effective the day and year first
hereinabove set forth.
LANDOWNER:
EVERGREEN
OPERATING CORPORATION
________________________
__________________________________
Dennis R. Carlton
President and Chief
Operating Officer
________________________
ACKNOWLEDGMENTS
STATE OF KANSAS
)
) ss.
COUNTY OF ___________)
Before me, the undersigned, a Notary Public
within and for said County and State,
on this ________day of
_____________,
personally appeared
to me known to be the identical persons who
executed the within and foregoing instrument and acknowledged
to me that they executed
the same as their free and voluntary
act and deed for the uses and purposes therein set
forth.
In testimony whereof, I have hereunto set my
hand and official seal the day and
year last above written.
My commission expires:
______________________
Notary Public
STATE OF COLORADO )
) ss.
COUNTY OF DENVER )
Before me, the undersigned, a Notary Public
within and for said County and State,
on this day of
personally appeared Dennis R. Carlton, the President and Chief Operating Officer of
Evergreen Operating Corporation, to me known to be the
identical person who executed the within and foregoing
instrument and acknowledged to
me that he executed the same as the free and
voluntary act and deed of the corporation for the uses and
purposes therein set forth.
In testimony whereof, I have hereunto set my
hand and official seal the day and
year last above written.
My commission expires:
______________________
Notary Public: Gayle Peppeard
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