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Conoco-CS 880531GINN, IN( . (]()N,NIII,TI Nil EN(iI N EI, II.$ May 31, 1988 Mr. Clyde A. Rhodes Director - Access and Regulations Concoco Inc. 1909 Southwood Drive Lake Charles, LA 70605 Re: Denton Tap Road Improvements From Belt Li.ne Road to Sandy Lake Road, Coppell, Texas Dear Mr. Rhodes: This letter is in response to your letter of December 11, 1987, which contains Conoco's requirements for construction of the above captioned road improvements across your 6 - inch high pressure petroleum products pipeline, and an agreement pertaining to same. The city of Coppell's legal counsel has reviewed the letter and has made some suggestions which may help to further clarify the elements of the proposed agreement. It is suggested that Conoco state specifically what work it will perform, and what its responsibilities will be in regards to that work, separately from the work and responsibilities of the City. As currently written, our legal counsel had difficulty in determining who was responsible for what. In regards to the listed requirements of your December 11, 1987 letter we have no objections to items 1, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13. The elements of item 1 need to be scheduled through the City of Coppell, and item 3 is covered by the drawings transmitted herewith. Referring to item 2 of your letter, we would like to modify the terms of payment as you and previously discussed. Instead of paying 100 % of the estimated cost for lowering your facilities 60 days prior to construction; the City would prefer to reimburse Conoco Inc. the cost of the work within 30 days of receipt of an invoice for the work. If you will recall, this is the procedure we used for the Moore Rd. Improvements project about two years ago. Item 5 is a little too vague for the city to agree to. Perhaps a more specific statement explaining which materials and equipment commonly used in road and utility construction would be considered a hindrance or impairment to safe operation and maintenance of your facilities will help to clarify this item. Item 14 is not acceptable to the City of Coppell in that it requires the City to indemnify Con-Dor and its Contractors from any and all claims arising directly or indirectly out of work being performed now as well as in the future on the Con-Dor pipeline. The City of Coppell feels that it would be more appropriate that the reference to "all future work" be discarded and that Conoco's contractors be required to carry the necessary liability insurance and be responsible for any damages that they may cause. We greatly appreciate your efforts in this effort to achieve an equitable agreement between the City of Coppell and Conoco, Inc. in order to allow the city to improve Denton Tap Road to provide a safe crossing of your facilities and the adjacent railroad. The construction of the road improvements will begin within the next two weeks or so, but the construction in the area of your facilities and the railroad crossing is not expected to begin within the next two months. Please review this information and respond as soon as possible. Please call us if you have any questions. Sincerely, John C. Karlsruher, P.E. Project Engineer cc: Alan D. Ratliff, city Manager H. Wayne Ginn, P.E., Acting City Engineer Lawrence W. Jackson, City Attorney File 378