FOR THE COUNCIL MEETING OF AUGUST 2, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Recreation and Parks
SUBJECT: GRANTING A RIGHT-OF-WAY EASEMENT TO CAT CANYON RESOURCES, INC. PIPELINE EXTENSION TO THEIR INJECTION
WELL LOCATED AT LOS FLORES RANCH PARK.
RECOMMENDATION:
That the City Council adopt a Resolution granting a right-of-way (ROW) Easement Agreement for an extension of an existing Cat Canyon Resources, Inc. (CCR)'pipeline to their Fletcher injection well located in Los Flores Ranch Park.
BACKGROUND:
The land that makes up the 1,700+ acres of Los Flores Ranch Park has a long history of being an active oil field operation. The City of Santa Maria (City) purchased the property with the knowledge and agreement that oil field operations would continue as long as the companies holding the rights to extract energy had a need. Currently, Los Flores Ranch Park is crisscrossed with active and inactive pipelines that are, for the most part, operated and maintained by CCR and Teams Energy Co. These companies maintain their right to access their pipelines and other infrastructure at Los Flores Ranch Park. For the past 10 years, the relationship between the City and the energy companies has been good.
DISCUSSION:
The Recreation and Parks Department has developed the attached ROW agreement in consultation with the City Attorney's Office and Risk Management. Also consulted was the City Utilities Department. The well site and ROW will at some time in the future be in the future landfill's footprint. The agreement allows CCR to construct an underground six- inch water line approximately 800 feet over open terrain, under an existing roadway to interconnect with their injection well, known as "Fletcher" well. This well has been on site for many years and has been in active use since before the City's purchase of the property. Up until the installation of this pipeline extension, tanker trucks filled with water would have to access Los Flores Ranch Park to process their loads of water into the well.
This pipeline ROW eliminates the need for tanker trucks to enter Los Flores Ranch Park, reducing the potential for conflicts with park guests, lessening noise, and improving the aesthetics of the current well site.
Fiscal Considerations:
The cost to construct and maintain the ROW, pipeline, well, and any support facilities/improvements lay solely with CCR. No costs are anticipated for the City.
Alternatives:
By not granting this ROW easement, allowing for the installation of a pipeline, truck traffic can be expected to continue and potentially expand the number of trips into Los Flores Ranch Park to access the well.
Impact to the Community:
This project reduces the potential for negative contact between tank trucks, guests, and staff at Los Flores Ranch Park. Tank truck engine noise and dust stirred up by truck traffic will be elimi
OSADA
'rector of Recreation and Parks
Attachment A: Easement Agreement
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Name: Cat Canyon Resources, LLC
Attn: Matt Sanders
Address: 6085 Cat Canyon Road, Santa Maria, CA 93454
Recorded in Official Records
County of Santa Barbara
JOSEPH E. HOLLAND
County Clerk -Recorder
DOC II 2022-0030651
06/30/2022
01:58 PM
snc
E17
Titles: 2 Pages: 17
Fees:
Taxes:
CA 582 Fee:
Total:
86.00 0.00
0.00 $86.00
^fit non
.$ 0`D I .41.3
(Space Above This Line For Recorder's Use)
EASEMENT AND RIGHT-OF-WAY AGREEMENT FOR PIPELINE AND PIPELINE
TIE-IN CONNECTION FACILITIES
THIS EASEMENT AND RIGHT-OF-WAY AGREEMENT FOR PIPELINE AND PIPELINE TIE-IN CONNECTION FACILITIES (the "Agreement"), is made and entered into this 6th day of May, 2022, by and between City of Santa Maria, hereinafter referred to as "G rantor" and Cat Canyon Resources, LLC, hereinafter referred to as "Grantee."
RECITALS
A. Grantor owns certain real property located in the County of Santa Barbara, State of California, as more particularly described on attached Exhibit A ("Grantor's Property"), which is incorporated in this Agreement.
B. Grantee desires to temporarily and permanently use various portions of Grantor's Property in order to construct and operate a pipeline (the "Pipeline"), as well as tie-in connection facilities ("Tie -In Connection").
C. Grantor is willing to grant to Grantee an easement for constructing and maintaining such pipeline and tie-in connection facilities across portions of Grantor's Property on the terms, and subject to the conditions, contained in this Agreement.
W f INESSETH
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged:
1. Grant of Easement. Grantor hereby grants and conveys to Grantee, its successors and assigns, the following easements (collectively, the "Easements") for the purposes of constructing, maintaining, repairing, replacing, removing, protecting, and operating the Pipeline in, under, and through Grantor's Property:
1.1. A perpetual, non-exclusive easement, subject to the restrictions and limitations placed on Grantor's use thereof contained in Paragraph 10 hereof, over a strip of land 20 feet in width, extending 10 feet on either side of the centerline of the installed Pipeline, to lay, protect, construct, inspect, reconstruct, replace, renew, repair, maintain, operate, abandon in place and remove one gas pipeline not to 1 114985667.10070573-00003
Attachment A
exceed twelve (12) inches in diameter, together with other buried appurtenances, in, under, and through a portion of Grantor's Property in the general location shown on the map attached to and incorporated in this Agreement as Exhibit B, plus such additional strip of land adjacent to the 20 -foot strip (not to exceed an additional 60 feet) as is reasonably necessary to temporarily accommodate the construction, maintenance, repair, replacement, or removal of the Pipeline (the "Pipeline Easement Area"). The temporary working area shall revert to Grantor upon completion of Pipeline construction except for Grantee's access for regulatory and monitoring purposes.
1.2. A perpetual, exclusive easement over and adjacent to the Pipeline Easement Area described in Paragraph 1.1 above, to construct, inspect, reconstruct, replace, renew, repair, maintain, operate, protect and remove Grantee's pipeline Tie -In Connection facilities, together with other buried appurtenances in, on, under and through a portion of Grantor's Property in the general location shown on the map attached hereto and incorporated in this Agreement as Exhibit B plus such additional land adjacent to the Tie -1n Connection facilities easement as is reasonably necessary to temporarily accommodate the construction, maintenance, repair, replacement or removal of the Pipeline and the Tie -In Connection facilities (the "Tie -In Connection Easement"). The temporary working area shall revert to Grantor upon completion of the Pipeline and Tie -In Connection facilities construction, except for Grantee's access for regulatory, maintenance, repair, operational and monitoring purposes.
1.3. A perpetual, nonexclusive easement for access to the Pipeline and the Tie-in Connection facilities over the Pipeline Easement and the Tie-in Connection Easement, as well as Grantor's adjacent lands.
2. As Built Survey. Grantee shall provide a final "as built" legal description and plat for recording purposes within ninety (90) days of the completion of the Pipeline. Grantee shall also provide a final "as built" legal description and plat for recording purposes of the Tie -In Connection.
3. Construction; Modification. Grantee agrees to place the Pipeline within existing dirt roads where practical. Grantor acknowledges that the Pipeline route may need to be adjusted prior to and during construction due to regulatory, environmental or field conditions. Under those circumstances Grantor agrees to adjust said route as close as practical to the alignment depicted in Exhibit B. Grantee shall generally bury and maintain said Pipeline and conduits at all road crossings and at the intersection of all previously laid pipelines, such that Grantee's pipeline will be at least twenty-four inches (24") below the surface of the ground, as measured from the top of Grantee's pipeline. Once said Pipeline is installed, Grantee shall promptly and properly back fill all excavations made by or for Grantee on said premises.
Grantee shall be allowed to place the Pipeline above ground when spanning streambed crossings and pipelines. Grantee shall indicate the location of said pipeline by suitable surface markers, but said markers when set in the ground, shall be placed in locations which will not interfere with any reasonable use Grantor shall make of said premises.
4. Condition of Grantor's Property. Grantee accepts the Easements strictly "as is" and subject to all prior conditions, limitations, restrictions, liens, encumbrances or interests, including prior easements, if any, of whatsoever nature affecting the Easements or any portion thereof which are of record or observable from a physical inspection of Easements or known to Grantee as of the date hereof. This Agreement is made subject to all valid and existing licenses, leases, grants, exceptions and reservations affecting Grantor's Property.
2 114955667.10070573-00003
5. Compliance with Laws. Grantee, its employees, contractors, employees and all other persons involved in the construction of the Pipeline and Tie -In Facilities on Grantor's Property shall comply with all federal, state, and local laws.
6. Third -Party Approvals. Grantee shall obtain all federal, state or other agency permits or approvals that are required prior to the commencement of construction of the Pipeline. If specifically requested by Grantor, Grantee shall furnish Grantor with a copy of any permit so requested.
7. Grantor's Use of Grantor's Property. Grantee shall not unreasonably interfere with or obstruct the use of Grantor's Property by Grantor for any and all purposes not inconsistent with the rights granted to Grantee herein or injure or interfere with any person or property on or about Grantor's Property.
8. Damage to Real or Personal Property. Grantee shall reasonably repair or pay Grantor for any and all damages to crops, irrigation systems, farm equipment, fences, pipelines, roads or other property of Grantor or Grantor's tenant which may arise from the exercise of the rights herein granted.
9. Taxes and Assessments. Grantor will pay and shall be solely responsible for all ad valorem real property taxes imposed with respect to Grantor's Property, except to the extent of any increase in such taxes that is directly and solely attributable to the Pipeline and Tie -In Connection. Grantee will pay and shall be solely responsible for all personal property taxes imposed with respect to the Pipeline and Tie -In Connection and shall pay any increase in ad valorem real property taxes with respect to Grantor's Property that is directly and solely attributable to the Pipeline and Tie -In Connection. Grantee shall and will pay, before the same become delinquent, all charges, taxes, rates and assessments upon or against the Pipeline and Tie -In Connection and any other property or improvements placed by or for Grantee upon Grantor's Property, but Grantor may, at all times after any delinquency, pay and discharge all of such delinquent charges, taxes, rates and assessments, after reasonable verification thereof, and all such payments so made by Grantor, with interest thereon, at the rate of ten percent (10%) per annum from date of payments, will be paid by Grantee upon demand. The amount of such payments and interest shall be a charge and lien against all pipes and other property placed by or for Grantee on said premises.
10. Reservation: Limitations on Grantor's Use of Pipeline Easement. Grantor reserves the right to utilize and enjoy Grantor's Property, however, Grantor's use shall not hinder, conflict, interfere, endanger or cause damage to the Pipeline or Tie-in Connection facilities pursuant to the rights herein conveyed. With Grantor's written consent, which shall not be unreasonably withheld, Grantor may cross Grantee's Pipeline Easement with surface roads, other pipelines, irrigation systems and overhead utilities, but shall cooperate with Grantee to avoid any interference with or disturbance of Grantee's Pipeline and associated facilities.
11. Duration.
11.1. The easements granted herein shall continue to be in full force and effect fora term of twenty (20) years and for so long thereafter as Grantee, or its successors and assigns, uses, maintains or operates the Pipeline. Following and after such twenty-year term Grantor may terminate this Agreement in the event Grantee shall fail, for a continuous period of three (3) years to use, operate or maintain the 3 114985667.10070573-00003
Pipeline. Upon the termination of the rights herein given, Grantee shall execute and deliver to Grantor a good and sufficient quitclaim of the rights herein given and provide Grantor with a fully executed and recorded copy of same.
11.2. In the event of the termination of this Agreement, Grantee shall thereupon, at its own expense and risk, either abandon in place or remove the Pipeline, and remove any other facilities or property upon Grantor's Property, including the Tie -In Connection facilities, and restore the Easements as nearly as practicable to substantially the same state and conditions existing prior to the construction of the Pipeline. Should Grantee elect to abandon the Pipeline in place, upon execution and recordation of the quitclaim, Grantee shall no longer have ownership of the remaining Pipeline and Grantor shall assume ownership of same. If Grantee shall fail to either abandon in place or remove the Pipeline, the Tie - Connection facilities, and other facilities located upon Grantor's Property within one hundred and eighty (180) days after termination of this Agreement, Grantor may do so, at the risk of Grantee, and all costs and expense of such removal and the restoration of said premises as aforesaid, together with ten percent (10%) interest per annum, shall be paid by Grantee upon demand; and in case of a suit to enforce or collect the same, Grantee agrees to pay Grantor, in addition, reasonable attorney's fees to be fixed and allowed by a court of law.
12. )Notice. Any notice provided herein to be given by either party hereto to the other may be served by depositing in the United States Post Office, postage paid, a sealed envelope containing a copy of such notice and addressed to said other party at its principal place of business, and the same shall be sufficient service of such notice.
13. Title. Grantee recognizes Grantor's title and interest in and to Grantor's Property over which the Easements are hereby conveyed and agrees never to accail or resist Grantor's title or interest therein by reason of any of the rights hereby conveyed. Grantor agrees to cooperate with and execute any further documents necessary for Grantee to perfect title and enjoy the rights granted herein.
14. Indemnity. Except for the sole negligence or willful misconduct of Grantor, Grantee hereby agrees to indemnify and to defend Grantor and to save and hold Grantor free and harmless from and against any and all claims, demands, losses, liabilities, costs, expenses and damages (including reasonable attorneys' fees and costs and expense in connection therewith) arising out of or relating to: (i) the exercise of Grantee's rights herein conveyed; (ii) any environmental harm or damage which may result directly from Grantee's construction and operation of the Pipeline; (iii) the condition of the Pipeline Easement or Tie -In Connection Easement; or (iv) the activities of Grantee (or any employee, agent, servant, contractor, invitee, licensee, or permittee of Grantee) hereunder on the Easements. Except for the negligence or willful misconduct of Grantee, Grantor hereby agrees to indemnify and to defend Grantee and to save and hold Grantee free and harmless from and against any and all claims, demands, losses, liabilities, costs, expenses and damages (including reasonable attorneys' fees and costs and expense in connection therewith) arising out of or relating to the exercise of Grantor's rights herein reserved, or to the activities of Grantor (or any employee, agent, servant, contractor, invitee, licensee, or permittee of Grantee) hereunder on the Easements.
4 114985667.10070573-00003
15. Assignment. This Agreement is personal to Grantee and shall not be assigned by Grantee, in whole or in part, without the written consent of Grantor first being had, provided, however, no consent shall be required in the event Grantee assigns this agreement to a common ownership affiliate or subsidiary or any entity having assets in excess of Twenty -Five Million Dollars ($25,000,000). No written consent by Grantor hereunder shall be deemed a waiver by Grantor of any of the provisions hereof, except of such consent.
16. Miscellaneous.
16.1. The rights of the Grantee hereunder are separate from, in addition to, and without prejudice to, any rights heretofore given or conveyed to Grantee or to its predecessor or predecessors in interest with respect to the lands of the Grantor hereinabove described.
16.2. This Agreement shall inure to the benefit of and be binding upon Grantor and Grantee, their respective successors and assigns.
16.3. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
16.4. This Agreement may be executed in two or more separate counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same Agreement.
16.5. Grantee shall procure at Grantee's expense and maintain insurance coverage meeting the insurance requirements listed in Exhibit C to cover losses, claims, damages and obligations resulting from Grantee's operation of the Pipeline and Tie -In Connection facilities. Grantee agrees to have its insurance carrier furnish Grantor a certificate verifying such insurance coverage naming Grantor as an additional insured on such policy on an annual basis.
16.6. The Easements including the Tie -In Connection Easement granted herein are intended and shall be deemed to replace, supplant and supersede any and all prior agreements, easements, right of ways, and reservations which may exist and directly relate to the Pipeline or Tie -In Connection regardless of form whether recorded or not.
[Signature and acknowledgements on following page(s)]
5 114985667.1 0070573-00003
IN WITNESS WHEREOF, the said parties hereto have executed this Agreement effective as of the date first hereinabove written.
"GRANTOR"
City of Santa Maria
By:
Name:
Title:
"GRANTEE"
Cat Canyon
nResource , L
By: /'144
Name: Mark A. DePuv
Title: CEO
6 114985667.10070573-00003
IN WITNESS WHEREOF, the said parties hereto have executed this Agreement effective as of the date first hereinabove written.
"GRANTOR"
City of Santa Maria
By:
Name: Jason Stilwell
Title: City Manager
"GRANTEE"
Cat Canyon Resources, LLC
By:
Name: Mark A. DePuy
Title: CEO
6 11498566710070573-00003
CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT
A Notary Public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document
STATE OF CALIFORNIA
COUNTY OF SANTA BARBARA
On May t9'", 2022, before me
T&104 Lii/i &JfAuk4
Notary Public, personally appeared Mark A. DePuy, CEO of Cat Canyon Resources, LLC who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within Instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature:
114995667.10070513-00003
7 (Seal)
JASON CISCO ESPINOZA
COMM. #2269358
NOTARY PUBLIC -CALIFORNIA
SANTA BARBARA COUNTY
My CoBTIL EgillEB December 2, 2022
CAUFORNIA ALL PURPOSE ACKNOWLEDGMENT
A Notary Public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OFCALIFORNIA
QQ���(,�����
COUNTY OF'Vat( aurbzkrt_.
On AA 4P.%I9-QZZ before me, 1�1/.9VLJ/�s"t-
Q' lath
c�lA QI
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the pe.r�son) whose namgps)' J d subscribed to the within instrument and acknowledged to me that �e'sne/0I4 , executed the same in ii lief/thd r authorized capacity( and that by r¢df/tom signaturef(4on the Instrument the person; or the entity upon behalf of which the person(S' acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature:
114985667.10070573-00003
7 (Seal)
RNONDA M. WNIrE
Notary Public - California
kite Barbara County
Commission/2319464
Comm. ExpiresJan 20, 2024
EXHIBIT "A"
Grantor's Property
Property Name: Los Flores
APN: 101-030-010, 101-030-013, 101-030-014, 101-060-002 PROPERTY DESCRIPTION: Township 9 North, Range 33 West, San Bernardino Base and Meridian, containing 1776 acres more or less, in Santa Barbara County, California, and more particularly described as follows:
PARCEL ONE: The South Half (S1/2) of Section 22, Township 9 North, Range 33 West of San Bernardino Meridian in the County of Santa Barbara, State of Califomia.
Excepting therefrom the Southwest Quarter (SW 1/4) of the Southwest Quarter (SW 1/4) of said Section 22.
Said land is described in a County of Santa Barbara Certificate of Compliance recorded August 19, 1999 as instrument No. 99-65436 of Official Records, records of said County.
PARCEL TWO:
The Southwest Quarter (SW1/4) of the Southwest Quarter (SW 1/4) of Section 22, Township 9 North, Range 33 West of San Bemardino Meridian in the County of Santa Barbara, State of California.
Said land is described in a County of Santa Barbara Certificate of Compliance recorded August 19, 1999 as Instrument No. 99-65437 of Official Records, records of said County.
PARCEL THREE:
That portion of Rancho Los Alamos in the County of Santa Barbara, State of California, being that portion of the land of John D. Bicknell described in the Deed dated October 31, 1901 and recorded in Book 79 of Deeds at Page 290 in the County Recorder's Office of said County lying Northerly of the Northeast right of way of State Highway 101, described in the Deed dated October 21, 1955 and recorded in Book 1357 of Official Records at Page 446 in said County Recorder's Office.
Except for that portion lying within the parcel of land shown on the Record of Survey filed in Book 28 of Record of Surveys at Page 98 in said County Recorder's Office.
Said land is described in a County of Santa Barbara Certificate of Compliance recorded December 14, 1999 as Instrument No 99-9663 3 of Official Records, records of said county. 9 114985667.10070573-00003
PARCEL FOUR:
That portion of Rancho Los Alamos in the County of Santa Barbara, State of California; being that portion of the land of John D. Bicknell described in the Deed dated October 31, 1901 and recorded in Book 79 of Deeds at Page 290 in the Office of the County Recorder of said County described as follows:
All that portion of the parcel of land shown on the Record of Survey filed in Book 28 of Record of Surveys at Page 98 in said County Recorder's Office lying Northerly of the Northeast right of way of State Highway 101, described in the Deed dated October 21, 1955 and recorded in Book 1357 of Official Records at Page 446 in said County Recorder's Office.
Said land is described in the County of Santa Barbara Certificate of Compliance recorded December 14, 1999 as Instrument No. 99-96634 of Official Records of said County.
ALL OF THE ABOVE AND FOREGOING PROPERTY BEING SUBJECT TO ALL OF THE FOLLOWING:
ALL OF THE EXCEPTIONS, RESERVATIONS AND RETENTIONS AND ALL AND ANY OF THE RIGHTS, DUTIES, LIABILITIES AND OBLIGATIONS DERIVED FROM (i) THAT CERTAIN PURCHASE AND SALE AGREEMENT DATED FEBRUARY 6, 2006 BY AND BETWEEN THE GRANTOR NAMED THEREIN AND THE CITY OF SANTA MARIA, (ii) THAT CERTAIN SITE MITIGATION AGREEMENT DATED MAY 4, 2006 BY AND
BETWEEN THE GRANTOR NAMED THEREIN AND THE CITY OF SANTA MARIA, AND (iii) THAT CERTAIN SITE MITIGATION EASEMENT DAM) MAY 4, 2006 BY
AND BETWEEN THE GRANTOR NAMED THEREIN AND THE CITY OF SANTA MARIA. SAID PURCHASE AND SALE AGREEMENT, SITE MITIGATION AGREEMENT
AND SITE MITIGATION EASEMENT ARE PERSONAL CONTRACTUAL AGREEMENTS
BETWEEN THE GRANTOR NAMED THEREIN AND THE CITY OF SANTA MARIA AND
SAID AGREEMENTS DO NOT INDIVIDUALLY OR JOINTLY CONSTITUTE COVENANTS RUNNING WITH THE LAND.
ALL THE RIGHTS AND INTERESTS EXCEPTED AND RESERVED BY CHEVRON U.S.A.
INC., A PENNSYLVANIA CORPORATION, OR ITS AFFILIATES IN THAT CERTAIN
GRANT DEED BY AND BETWEEN CHEVRON ENVIRONMENTAL SERVICES COMPANY AND THE CITY OF SANTA MARIA, RECORDED ON MAY 5, 2006 AS DOCUMENT NO. 2006-0036407 IN THE OFFICIAL RECORDS OF THE COUNTY OF SANTA BARBARA AND AS CONVEYED TO CHEVRON U.S.A. INC. BY QUITCLAIM
DEED RECORDED IN THE OFFICIAL RECORDS OF SANTA BARBARA COUNTY ON MAY 5, 2006 AS DOCUMENT NUMBER 2006-003 6406.
ALL THOSE CERTAIN RESERVATIONS, EXCEPTIONS, AND COVENANTS,
CONDITIONS AND RESTRICTIONS CONTAINED IN THE MINERAL DEED RECORDED 10 114985667.1 0070573-00003
AS INSTRUMENT NO. 2009-0005694, ASSIGNMENT OF OIL AND GAS LEASE RECORDED AS INSTRUMENT NO. 2009-0005698, AND ASSIGNMENT OF AGREEMENTS RECORDED AS INSTRUMENT NO. 2009-0005697, AND ASSIGNMENT OF OIL AND GAS LEASE RECORDED AS INSTRUMENT NO. 2009-0017371 AND COVENANT AGREEMENT RECORDED AS INSTRUMENT NO. 2009-0005696 ALL IN
THE OFFICIAL RECORDS OF THE SANTA BARBARA COUNTY RECORDER, AND
THAT CERTAIN UNRECORDED ASSET EXCHANGE AGREEMENT BY AND AMONG CHEVRON U.S.A. INC., WRBD II, LP AND E & B NATURAL RESOURCES MANAGEMENT CORPORATION DATED EFFECTIVE AS OF NOVEMBER 1, 2008. 11 114985667.10070573-00003
Legend
Fletcher 143
Lcs Flores proposed pipeline
Section 22
EXHIBIT "C"
Insurance
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees, or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.
3. Workers' Compensation insurance as required by the State of California, with Statutory Limits, and Employers' Liability insurance with a limit of' no less than $1,000,000 per accident for bodily injury or disease.
4. Contractors' Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
The City of Santa Maria (City), its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or 13 114985667.10070573-00003
operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor.
1. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 43).
2. For any claims related to this project, the Contractor's insurance coverage shall be primary and non-contributory insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.
Claims Made Policies —
If any coverage required is written on a claims -made coverage form:
1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.
3. If coverage is cancelled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
5. If the services involve lead -based paint or asbestos identifrcation/remediation, the Contractors Pollution Liability policy shall not contain lead -based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise ar teptable to the City.
Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy 14 114985667.10070573-00003
endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences.
However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. 15 114985667.10070573-00003
Certification
Pursuant to Government Code 27361.7, I certify (or declare) under penalty of perjury that the following is a true and correct copy of the illegible portions of this document, which are not photographically reproducible.
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The illegible portions of the document read as follows:
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Si ature of Declarant
Printed Name of Declarant
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, GRANTING A RIGHT-OF-WAY EASEMENT AGREEMENT FOR AN EXTENSION OF AN EXISTING CAT CANYON RESOURCES, INC. PIPELINE TO
THEIR FLETCHER INJECTION WELL LOCATED AT LOS FLORES RANCH PARK WHEREAS, the land that makes up the over 1,700 acres of Los Flores Ranch Park has a long history of being an active oil field, with several energy companies holding mineral rights over the property; and
WHEREAS, the City purchased the land at Los Flores Ranch Park with the knowledge and agreement that oil field operations would continue as long as companies holding the rights to extract energy had a need; and
WHEREAS, a right-of-way easement agreement for the extension of an existing Cat Canyon Resources pipeline to the Fletcher injection well located at Los Flores Ranch Park will be of mutual benefit, by reducing tanker truck access to the park; and WHEREAS, this right-of-way agreement reduces the potential for conflicts between energy operations and guests at Los Flores Ranch Park.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1. That the above recitals are true and correct.
2. Directs the City Manager, or his designee, to execute the Right -of -Way Easement Agreement document on behalf of the City.
3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria on the 2nd day of August 2022.
ATTEST:
Chief Deputy City Clerk
Mayor
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