Form 16-7

Surface Use Restrictions Addendum

Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the following information from any instrument that transfers an interest in real property before it is filed for record in the public records: your Social Security number or your driver’s license number.

Date:

Grantor:

Grantee:

Real Property:

Easement Property:

Facilities Construction Period:

Easement Agreement:

“Residence Unit” means a residential structure, together with barns, sheds, and associ­ated outbuildings.

“Hazardous Substances” means, but is not limited to, any substance that is or contains (1) any “hazardous substance” as defined in section 101(14) of the Comprehensive Environ­mental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended (42 U.S.C. § 9601 et seq.), or regulations promulgated under CERCLA; (2) any “hazardous waste” as now defined in the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. § 6901 et seq.) or regulations promulgated under RCRA; (3) any substance regulated by the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.); (4) gasoline, diesel fuel, or other petroleum hydrocarbons; (5) asbestos and asbestos-containing materials in any form, whether friable or nonfriable; (6) polychlorinated biphenyls; (7) radon gas; and (8) any additional sub­stances or materials (whether solid, liquid, or gas) that are classified, defined, or listed as pol­lutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, regulated substances, toxic substances, or words of similar meaning or regulatory effect under the foregoing statutes or any other present federal, state, or local laws, statutes, ordinances, rules, regulations, and the like or the common law or any other applicable laws relating to the Real Property. “Hazardous Substances” includes, without limitation, any sub­stance the presence of which on the Real Property (1) requires reporting, investigation, or remediation under the statutes cited above or (2) causes or threatens to cause a nuisance on any portion of the Real Property or adjacent property or poses or threatens to pose a hazard to the environment or the health or safety of persons on any portion of the Real Property or adja­cent property.

This Surface Use Restrictions Addendum modifies the Easement Agreement. Terms defined in the Easement Agreement have the same meaning in this Addendum. The terms of the Easement Agreement that are not modified by this Addendum remain in effect.

1.Grantee agrees that it will—

a.provide Grantor with a set of its plans for the Facilities at least sixty days before the commencement of initial construction of the Facilities;

b.provide Grantor with at least thirty days’ notice before the commencement of the initial construction of its Facilities;

c.complete initial construction of its Facilities before the expiration of the Facilities Construction Period;

d.construct, maintain, and operate all Facilities in a good and workmanlike manner, in good working order, and in accordance with all applicable laws and the terms of the Easement Agreement;

e.remove from the Easement Property and properly dispose of all trash and debris caused by Grantee, including any fencing, brush, and trees taken down by Grantee and unused materials, parts, tools, and equipment after construc­tion or maintenance;

f.use existing roads on the Easement Property when feasible for ingress and egress;

g.provide Grantor, on request, with reasonable access to or copies of Grantee’s records relating to Grantee’s Facilities on the Easement Property, including permits, well logs, test results, and the location of underground Facilities;

h.restore and revegetate any area disturbed by Grantee in connection with its activities on the Easement Property to approximately the condition existing immediately before the commencement of the activity;

i.promptly repair, remove, or replace any damaged or destroyed Facility;

j.require its employees, agents, representatives, and contractors to comply with the provisions of this Addendum;

k.pay its proportionate share for upkeep and maintenance of roads used by Grantor and Grantee;

l.promptly repair any damage to roads caused by Grantee, its employees, agents, representatives, or contractors;

m.comply with any reasonable rules established by Grantor for the use of the Easement Property during Grantee’s activities;

n.conduct its operations on the Easement Property in accordance with all appli­cable laws;

o.comply with the Construction Provisions set out below; and

p.comply with all rules and regulations of any governmental entity, including a local groundwater conservation district, with jurisdiction over the Real Prop­erty.

2.Grantee will not—

a.own or use in any manner any Surface Water located on the Easement Prop­erty not pumped from Grantee’s Facilities;

b.construct a well within [number] feet of any Residence Unit existing on the Easement Property on the date of the Easement Agreement, or within [num­ber] feet of any Residence Unit constructed on the Easement Property after the date of the Easement Agreement, or within [number] feet of an existing groundwater well, without the written consent of Grantor;

c.hunt or fish [include if applicable: or carry or allow possession of any fire­arms, explosives, or incendiary devices] on the Real Property;

d.extract or mine any caliche or gravel from the Real Property for building or road construction without a written agreement with Grantor;

e.store vehicles on the Easement Property, except in permitted staging areas when construction activities are in progress;

f.store any equipment or materials on the Easement Property that Grantee does not intend to use within the next six months for construction or maintenance on the Easement Property;

g.obstruct Grantor’s access to its buildings, equipment, crops, or livestock or unreasonably interfere with Grantor’s use of or operations on the Easement Property;

h.cause or permit contamination of the Easement Property or the Groundwater by Hazardous Substances;

i.cut or damage trees on the Easement Property, unless reasonably necessary for Grantee’s use of the Easement; or

j.construct a well or produce groundwater without first securing all necessary authorizations, including permits from any local groundwater conservation district with jurisdiction.

3.Grantor agrees that it will—

a.include in any mineral lease or any grant or reservation of mineral rights or interests, and any amendment to an existing mineral lease or reservation, a provision prohibiting the grantee from using Groundwater from the Real Property for any purpose other than drilling, completion, recompletion, reworking, remediation, and revegetation and from injecting or disposing of saltwater on the Real Property;

b.require its employees, invitees, agents, representatives, grantees, assigns, and contractors to comply with the provisions of this Addendum;

c.conduct its activities and operations on the Easement Property in accordance with applicable laws;

d.promptly repair any damage caused by Grantor to roads used by Grantee, its employees, invitees, agents, representatives, or contractors; and

e.pay its proportionate share for upkeep and maintenance of roads used by Grantor and Grantee.

4.Grantor will not—

a.create Groundwater-fed or -maintained lakes or ponds on the Easement Prop­erty, other than reasonable livestock drinking tanks or ponds;

b.cause or permit contamination of the Easement Property or the Groundwater by Hazardous Substances;

c.construct or permit construction by a third party of any improvements or util­ities within [number] feet of the Easement Property without Grantee’s prior written consent; or

d.contract for or allow the use of Groundwater by any third party without Grantee’s prior written consent.

5.Construction Provisions.      Unless otherwise agreed to by the parties in writing:

a.Any new roads built by Grantee will not be wider, on average, than [number] feet.

b.Grantee will construct new roads to its Facilities with a top course of crushed caliche covering the entire length and width. Roads constructed by Grantee for access to monitoring wells or for temporary use may be constructed to lesser standards agreed on by the parties.

c.Pipeline easements that are not blanket easements will be no greater than [number] feet in width on each side of the center line of the pipeline.

d.If the Easement Property is not a blanket easement, Grantee will have the right to use reasonable portions of the Real Property adjacent to or in the vicinity of the Easement Property as needed for construction staging areas, parking, and storing vehicles and equipment during construction or mainte­nance activities.

e.All pipelines and underground Facilities will be buried to a depth of at least [number] inches below the surface of the ground.

f.Grantee will use reasonable efforts to construct and maintain its Facilities in a manner that does not cause or contribute to erosion of the Easement Property or damage to Grantor’s livestock.

g.Grantee will restore any fencing that it temporarily removes for the purpose of constructing improvements and will take reasonable measures to contain livestock while the fencing is down or being restored.

   
[Name of grantor]

   
[Name of grantee]