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Wellsite-CS080128 ~ Chesaneake rENERGY January 28, 2008 City of Coppell Marcie Diamond 255 Parkway Boulevard Coppell, TX 75019 Laura Binkley Field & Permit Analyst Attn: Marcie Diamond, AICP Re: Fellowship 6H, City of Coppell, TX Permit to Drill Dear Marcie: Per our meeting last week, we agreed to address your concerns regarding the Fellowship 6H permit application submitted on Tuesday, January 22, 2008, by today, January 28, 2008. We can provide you with the following information: 1. Water Sources - At our meeting, Kenneth mentioned possibly getting water from the lake on the Fellowship property. It turns out, that is not a sufficient source of water for our drilling and fracturing operations. We will be getting our water from DFW Airport. The proposed route for the water line is: a line will be run ~ underneath Bethel Road and traveling north along Cottonwood Creek. It will then run along the creek to our pad site location. Per Kenneth's request, it will not run along Bethel Road. 2. Seismic and Dawson Activities for proposed site - There have been no seismic activities to date. Chesapeake is relying on the proposed site's proximity to DFW Airport and the success we have had with those operations. 3. Well count for proposed site - Right now, we are submitting for one permit (the 6H); however, the maximum wells this site can hold is six. This, of course, all depends on how successful the first well becomes. 4. Site specific site plan - Please see this exhibit attached. 5. Grading Plan and Erosion Control Plan - Please see these exhibits attached. 6. Landscaping - Please find this on our site specific site plan. 7. Road Repair Video - This was re-shot this weekend and will be dropped off at your office sometime tomorrow. 8. Floodplain - Please see the attached Floodplain map pulled directly off the FEMA website. We have scaled our pad site onto this FEMA map. Tom and I will be by tomorrow to drop off the hard copies, the video, and the checks. We will call you in the morning to see when you and Kenneth are available. If you aren't available, we will be happy to drop them off. Chesapeake Energy Corporation 301 Commerce Street Suite 600. Fort Worth, Texas 76102 8]7.870.5618. fax 817.810.9485. ]aura.binkley@chk.com I Chesaneake rENERGY Please let us know if there is anything else we can provide for you in order to get this permit application package taken care of. Sincerely, Laura E. Binkley Chesapeake Energy Corporation 30] Commerce Street Suite 600. Fort Worth, Texas 76102 8] 7.870.56] 8. fax 8] 7.810.9485 .Iaura.bink]ey@chk.com r- ~ Chesaneake rENERGY Martin J. Johnson Manager - Field Permitting January 22, 2008 City of Coppell Department of Planning 255 Parkway Boulevard Coppell, TX 75019 Attn: Marcie Diamond, AICP Re: Fellowship 6H, City of Coppell, TX Permit to Drill Dear Ms. Diamond: Chesapeake Operating, Inc. respectfully submits the following as application for a permit to drill the Fellowship 6H, the surface to be located within the city limits of Coppell, Texas. 1) Date of Application: January 22, 2008 Type of Permit Requested: See Gas Well Permit Application 2) Legal Description of lease property: See Gas Well Permit Application, under Well Information 3) Transportation Route: See attached Exhibit A. 4) Proposed Well Name: Fellowship 6H 5) Surface Owner(s): See Gas Well Permit Application 6) Mineral Lesse name and address: Fellowship of Las Colinas 3501 N. Macarthur Blvd. Irving, TX 75062-3636 7) Operator Info: See Gas Well Permit Application 8) Name of Individual to receive notice: See Gas Well Permit Application 9) Name of representative with supervisory authority over all gas operation site activities and 24-hour phone number: Same as above Chesapeake Energy Corporation 301 Commerce Street, Suite 600. Fort Worth, TX 76102 Phone: 817.870.1250. Fax 817.810.0450 . mjohnson6@chkenergy.com Page 2 City of Cappel I Permit to Drill Fellowship 6H 10) Location and description of improvements and structures within 800' of the well: See attached Exhibit B. 11) Owner and address of each parcel of property within 800' of the proposed drill site: See attached Exhibit C. 12) Detailed Site Plan: See attached Exhibit D. 13) Emergency Contact Information: See Gas Well Permit Application 14) Exact and correct acreage: 142 acres - 1 Well in this application 15) Copies of all reports required by Commission: See Exhibit E. 16) Road Repair Agreement: See Exhibit F. 17) Public Utilities Required: There will be no public utilities required. 18) Water Source: Water for drilling and fracing operations will be obtained from DFW Airport and existing Chesapeake Frac facilities located on DFW Airport. 19) Railroad Commission Permit with attachments: See attached Exhibit E. 20) SWPP: The Environmental Protection Agency (EPA) has modified the National Pollutant Discharge Elimination System regulations to provide that certain storm ) water discharges from field activities or operations, including construction, * associated with oil and gas exploration, production, processing, or treatment operations or transmission facilities are exempt from National Pollutant Discharge Elimination System permit requirements. Therefore, we are exempt from filing a Notice of Intent (NO I) or having a SWPP. 21) TCEQ Letter: See attached Exhibit G. 22) FAA Permit: See attached Exhibit H. 23) Hazardous Materials Management Plan: See attached Exhibit I. 24) Insurance and Security: According to Section 9-26-13 (E), The Operator who has a net worth of not less than $25,000,000, may substitute an acceptance and indemnity agreement in lieu of the bond and insurance requirements as set forth in this Ordinance, provided that it is in a form acceptable to and approved by the City Attorney. Chesapeake Energy Corporation 301 Commerce Street, Suite 600. Fort Worth, TX 76102 Phone: 817.870.1250. Fax 817.810.0224. martin.johnson@chk.com Page 3 City of Coppell Permit to Drill Fellowship 6H 25) Statement, under oath, signed by the Operator: See Gas Well Permit Application. 26) Gas Well Permit Fees: Two checks, for $1500 and $8250 are enclosed. 27) Tree Mitigation Plan/Tree Removal Permit: See Attached Exhibit J for the Tree Removal Survey. According to Section 12-34-2-6(1) of the Coppell Code of Ordinances, "In areas zoned LI (Light Industrial), trees located within the building footprint, as indicated on the site plan approved by city council, shall not be considered as protected trees under this section and shall not be subject to tree reparation payment." We will apply for the Tree Removal Permit once this permit has been approved by city council. 28) Acceptance and Indemnity Agreement: See attached Exhibit K. 29) Video: See attached Exhibit L. 30) City Building Inspections Permit/Grading Permit: As per Marcie Diamond, there are not currently specific forms related to gas wells for Building Inspection and Engineering, once we get closer to submitting and construction, we will work closely with those departments. 31) Notification of Surface Owners: Will notify surface owners 15-30 days prior to date of public hearing. 32) Picture of Sign Posted: Will post sign at least 15 days prior to date of public hearing. 33) Newspaper Affidavit: Will run notice 15-20 days prior to date of public hearing. Should you have questions, please contact me by phone or email as shown below. MJJ:leb Chesapeake Energy Corporation 301 Commerce Street, Suite 600. Fort Worth, TX 76102 Phone: 817.870.1250 . Fax 817.810.0224 . martin.johnson@chk.com -TKII:.C.tTY... GAS WELL PERMIT APPLICATION CITY OF COPPELL, TEXAS THI.4CIY'Y..' COPPELL ".~... , . ___ t" ." "' I- . 1 COPPELL "'~Jf , . t' t - . II ... I . , Operator Chesapeake Operating, Inc. Mailing Address 6100 N Western Ave City Oklahoma City E-mail randy.rodrigue@chk.com Telephone ~ 848-8000 State Oklahoma Cell Telephone L-.) Fax L-J Zip Code 73118 Individual designated to receive notice Martin Johnson Mailing Address 301 Commerce Street Suite 600 City Fort Worth E-mail martin.iohnson~chk.com Telephone L-.J State Texas Cell Telephone L-.) Fax L-J Zip Code 76102 Emergency 24-Hour Contact Person Tim Duqan Mailing Address 5601 East First Street City Fort Worth E-mail tim.dugan@chk.com Telephone UillQJ 556-9306 Fax <-) State Texas Zip Code 76103 Cell Telephone ~ 727-2485 Surface Ownel' Fellowship of Las Colinas Mailing Address 3501 N. MacArthur Blvd. City Irving E-mail Telephone <-) State Texas Cell Telephone L-.J Fax L-J Zip Code 75062-3636 Type of Gas Well Permit Requested: t:i?JNew o Amend Existing Permit o Operator Transfer Well Information: . iWPOSED WELL NAME{S): Fellowship 6H PROPERTY DESCRIPTION: Loti Tract Block Subdivision/Survey Heirs of James Gibson Survey, Abstract 1716 - Tract 3,31.069 Acres ADDRESS: 2450 N Highway 121 Grapevine, TX 76051 PARCEL AND PRODUCTION UNIT: Fellowship 6H RRC PERMIT NUMBER: 652029 Gas Well Application Checklist - Applicant must complete the attached checklist with this permit application. I hereby certify that the above information is correct and complete to the best of my knowledge and belief. I further certify that I have ead, uncle ly with Article 9-26 of the Coppel! Code of Ordinances. r-:- Signature of Applicant: Date: J.tl- .J~, Z~r Please Print Name: Martin J. John n A roved As Noted Denied Date 'e Check No. Date City of Coppell Permit Application Fellowship 6H -.I m >< :J'" -. C" ;:::+ )> Legend Proposed Well Site Transportation Route r,. \~\ ChesaH~:llie Fellowship 6H Transportation Route January 18, 2008 Created Map Scale Projection: 112,000 PI ne NAD 27 Texas State a (4202) North Central Zone ,Ice Fernandez - m x ::::r -. CJ ;::+: OJ - Legend p! oposed Well Site ',t "L r"'s 500 i, \1' Chesare*e Fellowship 6H Structures Within 800' Created' December 21 2007 Map Scale 15,000 Projection: Texas State Plane NAD 27 North Central Zone (4202) jc)e F::OIi',a'lde? . m x :::r rr .-+ o - ~ I ~~ Legend . Proposed Well Site ~t\? It-G 800' .. . . . .2 . . . . 4 I ChesaE~e Fellowship 6H Owners Within 800' Created: December 21, 2007 Map Scale: 1:10,000 Feet 500 1,000 Projection: Texas State Plane NAD 27 North Central Zone (4202) Joe Fernandez O'E'sapeake Energy Corporation 301 Comme;ce 51 S'2 60D Fort VVorth, TX 76,02 Phone: 817-870-1250 Fax: 817-81:J.S485 Web Site: http://w\'lW.chkenergy_com/ ~ ChesaB~~e Surface Owners of Property Within 800 Feet Of Fellowship 6H JAMES GIBSON ABST 1716 PG 535 ! :~~: ~~~~~ ABST 1140 PG 490 ! DALLAS FORT WORTH AIRPORT This document was created by the GIS Department of Chesapeake Energy Ccr;Joratlon. ThE' infcrmat:cn contained herein was derived from county tax records and data. No claims are made to the accuracy or completeness of the data or to its suitabilitv for a particular Lise. Chesapeake Energy Corporation, 301 Commerce SI SI" 600, Fort Worth, TX 76102 Phone 817-870-1250 Fax: 817-810-9485 Web Sile: http://wwwchkenergy,com/ I Chesa eake ENERGY Surface Owners of Property Within 800 Feet Of Fellowship 6H This document was created by the GIS Department of Chesapeake Energy Corporation, The information contained herein was derived from county tax records and data, No claims are made to the aCcuracy or completeness of the data or to its suitability for a particular use, - \l m x ::::J'" C'" r-+ o ; I I i ! '-- " i Chesapeake Fellowship Pad Site Layout Production Phase C;realed January 25_ 2008 Map Scale 1 ~')D ProJeCllon Texas Stale Plane NAO 27 North Cerlfral Zone (4202) lN3Wl1:l'id3C 9NINN'ild ~GG~ ll'(, I' . . 03fJ3:>3~ " S; z z .... :;a Z m Gl n ~ .; !Z ~ '..) m ~ g 0 J: 00 m ~ r ~ ') ." "'~ Chesa~,*e Fellowship Pad Site Layout Drilling Phase Created ,anuar.,' 25. 2008 Map Scale ~ 516 Projection Texas State Plane NAD 27 North Central Zone (4202) PRODUCTION LAYOUT r r ".--. fxhl\? tt D (~,:-:~~~~~~=--~'\lT I : : I I : : I I : : I I : : I I : : I I : : I I : : I I : I I : I I : I I : I I : I, I : I I I I : I _~I : I I I I i I Ii: [I Ii i i I : --, I: Three Phase Separater I I I: 4' Diameter and 14' long : I I : II I : I ' I \, / i I i 1\ " '------2QC~:~_:=~-'-) I r'- - -~~~-~-=-=~-~I - FOIJ! Stri'lnd Chain Link Fence around the Bern ----- r.n~.n'l . -p= . . . . . . . ! ! ....................~ 100' .9 Md'cl ~ ,,- r- RIG LA YOUr t 150' from Wellbore to Crown Stand ~ 5'4"~ ~ 48' 8'-+1 b '" I I ~ ~ i ~ i L ~ J 0 m Pipe Rack Area CD OJ CD OJ OJ I 8- 8- ~ 8- 8- i!. 0. ;;: 0: 0: 0: 0: 0: () I ~ 6'~ :- T 36' 1 ~'4U -*- IE33' ~ 10'2"+1 &:T 'illS. ~! (j ~om Wellbore to Edge of Locatic ~ l~ ~ s () ~ EJi r-. 1 I 12'8" -. _ co ,.. '" J!l 0: ~ :i2 ~ 32'2" 150' from Wellbore to Edge of Locati-dln I. ,r~":.; 4~O" I C27'::JT I' ~ #2 Pump L Accumulator & Light Plant 4'8" T Fuel Tank & Water Tank J!l 0: ~ :i2 ~ .. '~ ~ 0. 35'4" 35'S" Mud House T 8'2" ...:L 150' from wellbot to Backyard -I T 10' ...:L II -I -+-- 12'----'" ill . '. .= I i5 ....--12.--+ ill . . .= " ~ I ~ c m ~ U """--12'---+ ill . ';; .= o . ~ " , 0. g f- - \I m x ::J'" C" - m ~).:\7L,-r E Railroad Commission of Texas PERMIT TO DRILL, RECOMPLETE, OR RE-ENTER ON REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION CONDITIONS AND INSTRUCTIONS Permit Invalidation. It is the operator's responsibility to make sure that the permitted location complies with Commission density and spacing rules in effect on the spud date. The permit becomes invalid automatically if, because of a field rule change or the drilling of another well, the stated location is not in compliance with Commission field rules on the spud date. If this occurs, application for an exception to Statewide Rules 37 and 38 must be made and a special permit granted prior to spudding. Failure to do so may result in an allowable not being assigned and/or enforcement procedures being initiated. Permit expiration. This permit expires two (2) years from the date of issuance shown on the permit unless actual drilling operations have begun. The permit period will not be extended. If a permit is materially amended, the expiration date is two (2) years from the time the amended permit is issued. Drilling Permit Number. The drilling permit number shown on the permit MUST be given as a reference with any notification to the district (see below), correspondence, or application concerning this permit. Rule 37 Exception Permits. This Statewide Rule 37 exception permit is granted under either provision 37 (h)(2)(A) or 37(h)(2)(B). Be advised that a permit granted under 37(h)(2)(A), notice of application, is subject to the General Rules of Practice and Procedures and if a protest is received under Section 1.3, "Filing of Documents," and/or Section 1.4, "Computation of Time," the permit may be deemed invalid. Before Drilling Fresh Water Sand Protection. The operator must set and cement sufficient surface casing to protect all usable-quality water, as defmed by the Tx Natural Resource Conservation Commission. Before drilling a well, the operator must obtain a letter from the Texas Natural Resource Conservation Commission stating the depth to which water needs protection, Write: Texas Natural Resource Conservation Commission (Surface Casing-MCI51), P.O. Box 13087, Austin, TX 78711-3087. File a copy of the letter with the appropriate district office. During Drilling Permit at Drilling Site. A copy of the Form W-l Drilling Permit Application, the location plat, a copy of Statewide Rule 13 alternate surface casing setting depth approval from the district office, if applicable, and this drilling permit must be kept at the permitted well site throughout drilling operations. *Notification of Setting Casing. The operator MUST call in notification to the appropriate district office (phone number shown the on permit) a minimum of eight (8) hours prior to the setting of surface casing, intermediate casing, AND production casing. The individual giving notification MUST be able to advise the district office of the drilling permit number. Completion of Drilling Producing Well. Statewide Rule 16 requires that the operator submit a Form W-2 (oil well) or Form G-l (gas well) to the appropriate Commission district office within thirty (30) days after completion of such well. Completion of the well in a field authorized by this permit voids the permit for all other fields included in the permit unless the operator indicates on the initial completion report that the well is to be a dual or multiple completion and promptly submits an application for multiple completion. All zones are required to be completed before the expiration date on the existing permit. Statewide Rule 40( d) requires that upon successful completion of a well in the same reservoir as any other well previously assigned the same acreage, proration plats and P-15s (if required) must be submitted with no double assignment of acreage. Dry or Noncommercial Hole. Statewide Rule 14(b )(2) prohibits suspension of operations on each dry or non-commercial well without plugging unless the hole is cased and the casing is cemented in compliance with Commission rules. Ifproperly cased, Statewide Rule 14(b)(2) requires that plugging operations must begin within a period of one (I) year after drilling or operations have ceased. Plugging operations must proceed with due diligence until completed. An extension to the one-year plugging requirement may be granted under the provisions stated in Statewide Rule 14(b )(2). Intention to Plug. The operator must file a Form W-3A (Notice ofIntention to Plug and Abandon) with the district office at least five (5) days prior to beginning plugging operations. If, however, a drilling rig is already at work on location and ready to begin plugging operations, the district director or the director's delegate may waive this requirement upon request, and verbally approve the proposed plugging procedures. *Notification of Plugging a Dry Hole. The operator MUST call in notification to the appropriate district office (phone number shown on permit) a minimum offour (4) hours prior to beginning plugging operations. The individual giving the notification MUST be able to advise the district office of the drilling permit number and all water protection depths for that location as stated in the Tx Natural Resource Conservation Commission letter. *NOTlFICATlON The operator is REQUIRED to notifY the district office when setting surface casing, intermediate casing, and production casing, or when plugging a dry hole. Time requirements are given above. The drilling permit number MUST be given with such notifications. DIRECT INQUIRIES TO: DRILLING PERMIT SECTION, OIL AND GAS DIVISION MAIL: PO Box 12967 Austin, Texas, 78711-2967 PHONE (512) 463-6751 Page 1 of 2 RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE-ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER 652029 DA TE PERMIT ISSUED OR AMENDED Jan 04, 2008 DISTRICT 05 API NUMBER FORM W-I RECEIVED 42-113-30130 Dec 22, 2007 COUNTY DAllAS TYPE OF OPERATION NEW DRill WELLBORE PROFlLE(S) Horizontal ACRES OPERATOR 147715 142 NOTICE This permit and any allowable assigned may be revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (903) 984-3026 WELL NUMBER CHESAPEAKE OPERATING, INC. A TTN CHRISTIAN COMBS PO BOX 18496 OKLAHOMA CITY, OK 73154 LEASE NAME FEllOWSHIP 6H LOCATION TOTAL DEPTH o miles Within direction from COPPEll 9000 Section, Block and/or Survey SECTION -< 155 BLOCK -< SURVEY -< GIBSON, J DISTANCE TO SURVEY LINES 688 ft. E 799 ft. S ABSTRACT -< 1716 DISTANCE TO NEAREST LEASE LINE 360 ft. DISTANCE TO LEASE LINES 509 ft. E 748 ft. S DISTANCE TO NEAREST WELL ON LEASE See FIELD(s) Below FlELD(s) and LIMITATIONS: FIELD NAME LEASE NAME ACRES DEPTH NEAREST LEASE WELL # D1ST NEAREST WE -------------------------------------------------------------------- -------- --------- ------- --- NEWARK, EAST (BARNETT SHALE) FELLOWSHIP 142.00 360 7,216 6H 09 o ------------------------------------------------------- ------------------------------------------------------- WELLBORE PROFlLE(s) FOR FIELD: Horizontal RESTRICTIONS: Lateral: TH1 Penetration Point Location Lease Lines: 500.0 F S L 462.0 F E L Terminus Location Lease Lines: Survey Lines: 360.0FNL 416.0 F E L 642.0 F E L 1491.0 F N L THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. 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N LONG.=97.031086.W NAD21 (GRID) Y=472748 X=2143900 HENRY SUGGS SURVEY A -1 41 5 SURFACE LOCATION OF FELLOWSHIP 6H NAD27 LAT. =32. 95707S.N LONG.=97.031081.W NADS3 LAT.=32.957202.N LONG.=97.031367.W NA027 (GRID) NORTHING (Y)=469771 EASTING (X)=2143827 GRD ELEV (NAVD88)=539 APPRoX. 22 MILES NE OF FORT WORTH ~ ~ <.5 ~ ~ ~ ~ ~ i l't HEIRS OF MORGAN HOOD SURVEY A'-~699 ~ ~ ~ ----1748' TO SI L~~~~ ~6N~+- SURVEY LINE i WILLIAM WINN 'ISINGLETONII SURVEY THOMPSON SURVE Y 1 I A-1555 ! ~I-" _1-" >luJ uJ a.. 9:(15 i3lu ILL- g;IO >-I~ f-I- _ u UI HEIRS OF JAMES GIBSON SURVEY A-586 S03.10'47"E 699' A-1ob1 A-1655 ----------, I I 1 1 I I PLPP I II 360' FROM N LEASE LINE JESSE MOORE 416' FROM E LEASE ~INE I SURVEY I 1 L-1-------- I I W] L L I AM K PAYNE I I SURVEY 1 >- I w I ~ I 1U1~1 f-r- I~II w<( I ~ I I t:; I I I I~PUPP I I 500' FROM S LEASE LINEI I 462' FROM E LEASE LINE 50' TO S ~~r - --- ---- - -.1 __I LEASE LINE I -,0,' TOS SURVEY LINE I SINGLETON I THOMPSON SURVEY I I \ ------ ---\---- -- ---- -i l ---- -- -- ! 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TX 7il02 S.~_lI/S C\277a:?6 CHPK-F~~')Kr;lf;:i\JJrn\lf'fil-FfrJ/siF;;';"s/'il:fii{ w/;'/I-pki.q.d-;-;.;----.-.-----~- i.2/?0/2W1 9.-48.-53 411 ~ ~~~T9~~ ~iiuEBJTELY S! DEPiCTS mE SLRp,t,CE lOCl\l1ON OF ~ THE StBJECT W8l. /l6 STAKED ON -<.~" 1HE GROU"-O Ul\[)8'l MY SJP8'lVIS~'1 .. ~ ,~\>,~:;...9,~....(~-f:~ ,e;, .... rJ \ " I E: /Co", '1.., I " <(c ..A..''':> ". v '\ I~ /Q:-~- 'C\ ~~' r..........,. . .~. ., . ~ ~. JOSEPI j S .,'~ ';';, ;:E'(~~ \"'\'". .. ';', SCAlE IN FE" ! ~. ~~;.;.,;:.~:~.~ ~.~.7oo lO~O 1500 TEJ(A<; 1'1)5934 ~R\Jt. SCALE 1 "=1000' ~ /Z-ZO-o7 FELLOWSHIP 6H &21.. LLC PROPOSED WELL LOCATION 11JS5 MoCllEE ReA) PIi.-21h3fM TX'~~_J41-i825 CITY OF COPPELL _1- oflloa........'9'u..... DALLAS COUNTY, TEXAS - \l m >< ~ 0" ;:::+: "T1 Et\t\'ot' ~ ROAD REPAIR AGREEMENT BETWEEN THE CITY OF COPPELL AND CHESAPEAKE OPERATING, INC. J This Road Repair Agreement, (Agreement), is made and entered into on this the 4" -'P!::dayof /H-:l'f ' ~007, by and between the city of Coppell, Texas, a home rule pTr municipal corporation of the State of Texas, located within Dallas County, Texas (Hereinafter referred to as the "City") and Chesapeake Operating, Inc. ("Operator") for the repair of certain streets and/or roadways within the City, as more fully described herein. WHEREAS, Operator is in the business of drilling gas wells and, in connection therewith, shall be engaged in drilling and production activities on property which abuts, is adjacent to, and/or is accessed by roadways within the City; and WHEREAS, use of the roadways by the Operator for the purpose of performing the activities described hereinabove may cause damage to the roadways; and WHEREAS, the City and Operator, for the mutual consideration hereinafter stated, desire to enter into this Agreement for Operator to repair said roadways for the duration of the term of this Agreement in consideration of Operator's use of said roadways for the purpose of the activities described hereinabove; IT IS NOW THEREFORE AGREED THAT: ARTICLE 1. REPAIR OBLIGATION 1. Operator shall repair damages caused by Operator or its contractors, subcontractors, employees, and agents, excluding ordinary wear and tear, if any, to roadways that are used to access property which abuts, is adjacent to, and/or is accessed by roadways within the City for the drilling and production of gas wells. The operator shall obtain a permit from the City of Coppell for use of the roadways prior to site preparation of each individual well site, where the transportation 'of equipment, materials and related activities will utilize adjacent roadways. This obligation shall continue during the term of this Agreement, and Operator shall, prior to the termination of this Agreement, as provided herein, repair such damages to such roadways, excluding ordinary wear and tear, if any, to the conditiQn in which such roadways existed prior to the execution of this Agreement. Operator shall make videotape of such roadways prior to the start of Operator drilling and operation of its gas wells and shall provide a copy of the videotape to the Director of Engineering and Public Works. Operator shall notify the Director of Engineering and Public Works when drilling .9r. tracing operations are complete so that the Director of Engineering and Public Works can determine if repairs are required. 2. In connection with its obligation to repair said roadways, Operator shall use materials of the same or better quality than those utilized to surface and/or repair the roadways prior to execution of this Agreement and in accordance with the current standards specifications of the City. Deviation from the materials described herein shall not be permitted without the prior written consent of the Director of Engineering and Public Works. Repairs shall be completed in accordance with standard engineering practices acceptable to the City. 3. Operator shall repair the damage to the roadways at its. sole cost and expense. 4. During the term of this Agreement, Operator and the Director of Engineering and Public Works shall periodically inspect the roadways during drilling, fracture stimulation or re-working of the gas well to determine whether or not any damage has occurred as a result of Operator's activities. Immediately upon discovering the existence of any such damage to the roadways, Operator shall undertake to repair and/or remedy same. Upon discovery of damage by the Operator, the Operator will have forty-eight (48) hours to contact the Director of Engineering and Public Works to. work out a schedule of repairs. Repairs shall take place within thirty (30) days or immediately if the damage affects the immediate health and safety of individuals. ARTICLE 2. TERM OF AGREEMENT This Agreement shall commence upon the date indicated above and shall continue in full force and effect until Operator has completed and/or permanently discontinued the activities upon the roadways, as described hereinabove. ARTICLE 3. INSURANCE AND INDEMNITY The Operator shall provide or cause to be provided the insurance described below and such insurance to continue until the well is abandoned and the site restored. In addition to the bond or letter of credit required pursuant to this Agreement and the. ,?oppell. "Gas Drilli~g and Produ~tion" Ordinance, the Operator shall carry a policy or poliCies of Insurance Issued by an Insurance company or companies authorized to do business in Texas. In the event such insurance policy or policies are cancelled, this Agreement shall be suspended on such date of cancellation and the Operator's right to operate under this Agreement shall immediately cease until the Operator files additional insurance as provided herein. Page 2 1. General Requirements applicable to all policies. a. The City, its officials, employees, agents and officers shall be endorsed as an "Additional Insured" to all policies except Employers Liability coverage under the Operator's Workers Compensation policy. b. All policies shall be written on an occurrence basis except for Environmental Pollution Liability (Seepage and Pollution coverage) and Excess or Umbrella Liability, which may be on a claims-made basis. c. All policies shall be written by an insurer with an A-: VIII or better rating by the most current version of the A. M. Best Key Rating Guide or with such other financially sound insurance carriers acceptable to the City. d. Deductibles shall be listed on the Certificate of Insurance and shall be on a "per occurrence" basis unless otherwise stipulated herein. e. Certificates of Insurance shall be delivered to the city of Coppell, Engineering Department, 255 Parkway Blvd, Coppell, Texas 75019 evidencing all the required coverages, including endorsements, prior to finalization of this Agreement. f. All policies shall be endorsed with a waiver of subrogation providing rights of recovery in favor of the City. g. Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement specified herein. h. Each policy shall be endorsed to provide the City a minimum thirty (30)-day notice of cancellation, non-renewal, and/or material change in policy terms or coverage. A ten (10)-day notice shall be acceptable in the event of non- payment of premium. i. During the term of this Agreement, the Operator shall report, in a timely manner, to the Gas Inspector any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss. j. Upon request, certified copies of all insurance policies shall be furnished to the City. 2. Standard Commercial General Liability POIiCY[ml]. This coverage must include premises, operations, blowout or explosion, products, completed operations, sudden and accidental pollution, blanket contractual liability, underground resources damage, broad form property damage, independent contractors protective liability and personal injury. This coverage shall be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. 3. Excess or Umbrella Liability $5,000,000 Excess, if the Operator has a stand-alone Environmental Pollution Liability (EPL) policy. $10,000,000 Excess, if the Operator does not have a stand-alone EPL policy. Page 3 Coverage must include an endorsement for sudden or accidental pollution. If Seepage and Pollution coverage is written on a "claims made" basis, the Operator must maintain continuous coverage and purchase Extended Coverage Period Insurance when necessary. 4. Workers Compensation and Employers Liability Insurance a. Workers Compensation benefits shall be Texas Statutory Limits. b. Employers Liability shall be a minimum of $500,000 per accident. c. Such coverage shall include a waiver of subrogation in favor of the City and provide coverage in accordance with applicable state and federal laws. 5. Automobile Liability Insurance a. Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. b. Coverage must include all owned, hired and not-owned automobiles. 6. Certificates of Insurance a. The company must be admitted or approved to do business in the State of Texas, unless the coverage is written by a Surplus Lines insurer. b. The insurance set forth by the insurance company must be underwritten on forms that have been approved by the Texas State Board of Insurance or ISO, or an equivalent policy form acceptable to the City. c. Sets. forth all endorsements and insurance coverage according to requirements and instructions contained herein. d. Shall specifically set forth the notice of cancellation, termination, or change in coverage provisions to the City. All policies shall be endorsed to read 'THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT THIRTY (30) DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLlCY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE TEN (10) DAYS ADVANCE WRITTEN NOTICE IS REQUIRED". e. Original endorsements affecting coverage required by this section shall be furnished with the certificates of insurance. 7. The cancellation of any insurance for the sole purpose of the repair of roadways will not release the obligation of the Operator to meet all requirements of insurance and bonding under the Coppell "Gas Drilling and Production" Ordinance. 8. ~perator shall and hereby does indemnify, defend and save harmless the City, Its officers, agents and employees from all suits, actions or claims of any character, name and description brought for or on account of any injuries or damages received as sustained by any person, persons or property on account Page 4 of the operations of the Operator, its agents, employees, contractors or subcontractors; or on account of any negligent act of fault of the Operator, its agents, employees, contractors or subcontractors in connection with the obligations under this Road Repair Agreement; and shall pay any judgment, with costs, which may be obtained against the City growing out of such injury or damage. ARTICLE 4. PERFORMANCE BONDS 1. Operator shall provide a performance bond, unless a performance bond has been provided for the issuance of an Oil or Gas Well Permit under the terms and conditions described in Coppel! "Gas Drilling and Production" Ordinance, in an amount not less than the amount necessary to repair the roadways, as determined by the Director of Engineering and Public Works. 2. Prior to the beginning of any activity, unless a performance bond has been provided for the issuance of an Oil or Gas Well Permit under the terms and conditions described in the Coppell "Gas Drilling and Production" Ordinance, Operator shall provide the Gas Inspector with a security instrument in the form of a bond or an irrevocable letter of credit as follows: a. Bond. A bond shall be executed by a reliable bonding or insurance institution authorized to do business in Texas, acceptable to the City. The bond shall become effective on or before the date activity begins and shall remain in force and effect for at least a period of six (6) months after activity is complete. The Operator shall be listed as principal and the instrument shall run to the City, as obligee, and shall be conditioned that the Operator will comply with the terms and regulations of this Ordinance and the City. The original bond shall be submitted to the Director of Engineering and Public Works with a copy of the same provided to the City Secretary and the Oil and Gas Inspectorffechnical Advisor. b. Letter of Credit. A letter of credit shall be issued by a reliable bank authorized to do business in Texas and shall become effective on or before the date the Oil or Gas Well Permit is issued. The letter of credit shall remain in. force and effect for at least a period of six (6) months after the expiration of the term of this Agreement. The City shall be authorized to draw upon such letter of credit to recover any fines or penalties assessed under this ordinance. Evidence of the execution of a letter of credit shall be submitted to the Director of Engineering and Public Works submitting an original signed letter of credit from the banking institution, with a copy of the same provided to the City Secretary and the Oil and Gas Inspectorffechnical Advisor. Page 5 c. Whenever the Oil and Gas InspectorlTechnical Advisor or the Director of Engineering and Public Works Department finds that a default has occurred in the performance bf any requirement or condition imposed by this Agreement, a written notice shall be given to Operator. Such notice shall specify the work to be done, the estimated cost and the period of time deemed by the Oil and Gas InspectorlTechnical Advisor or the Director of Engineering and Public Works Department to be reasonably necessary for the completion of such work. After receipt of such notice, the Operator shall, within the time therein specified, either cause or require th~ work to be performed, or failing to do so, shall pay over to the City one hundred twenty-five percent (125%) of the estimated cost of doing the work as set forth in the notice. d. The City shall be authorized to draw against any irrevocable letter of credit or bond to recover such amount due from Operator. Upon receipt of such monies, the City shall proceed by such mode as deemed convenient to cause the required work to be performed and completed, but no liability shall be incurred other than for the expenditure of said sum in hand. e. In the event Operator does not cause the work to be performed and fails or refuses to pay over to the City the estimated cost of the work to be done as set forth in the notice, or the issuer of the security instrument refuses to honor any draft by the City against the applicable irrevocable letter of credit or bond, the City may proceed to obtain compliance and abate the default by way of civil action against Operator, or by criminal action against the Operator, or by both such methods. f. The cancellation of any bond or letter of credit for the sole purpose of the repair of roadways will not release the obligation of the Operator to meet all requirements of insurance and bonding under the Coppell "Gas Drilling and Production" Ordinance. Any bond required by the Coppell "Gas Drilling and Production" Ordinance shall stay in full force and effect until the terms and conditions set out in the Ordinance are met. 3. If the cost of completing the repair is an amount of fifteen thousand dollars ($15,000) or less, as determined by the Director of Engineering and Public Works, cash in the amount necessary to complete the repairs, as determined by the Director of Engineering and Public Works, may be deposited with a bank or escrow agent pursuant to an escrow agreement acceptable and approved by the City ensuring completion of the repair. Page 6 ARTICLE 5 MISCELLANEOUS PROVISIONS 1. Operator understands and agrees that Operator, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the City. The City shall not have any control over the means or methods by which Operator shall perform its obligations hereunder. Operator shall furnish all equipment and materials necessary to perform hereunder and shall at all times be acting as an independent Operator. 2. By entering into this Agreement, the City does not waive, nor shall it be deemed to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. 3. This Agreement represents the entire agreement between Operator and City for repair of roadways and supersedes all prior negotiation.s, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the governing body of the City or those authorized to sign on behalf of the City's governing body. ARTICLE 6. FORCE MAJEURE Events of Force Majeure shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, government or de facto government action (unless caused by acts or omissions of the party), fires, explosions, rain or other weather delays, floods, strikes, slowdowns or work stoppages. ARTICLE 7. ASSIGNABILITY/CONSENT Except as otherwise provided herein, or except as may be hereafter determined by the parties, no party to this Agreement may sell, assign, or transfer its interest in this Agreement, or any of its right, duties. or obligations hereunder, without the prior written consent of the other party. Whenever the consent or the approval of a party is required herein, such party shall not unreasonably withhold, delay, or deny such consent or approval. Operator may assign this Agreement to any successor entity to whom the applicable Oil or Gas Well Permit has been assigned upon written notice to the City of said assignment. Page 7 ARTICLE 8. NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be by personal delivery; sent by registered mail or certified mail; or by United States Mail, return receipt reques.ted, postage prepaid; to: CITY: Office of the City Manager City of Coppell, Texas 255 Parkway Boulevard Coppell, Texas 75019 OPERATOR Chesapeake Operating, Inc. PO Box 18496 Oklahoma City, Oklahoma 73154-0496 Notice shall be deemed to have been received on the date of receipt as shown on the return receipt or other written evidence of receipt. ARTICLE 9. MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any prdceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE 10. SA VINGS/SEVERABILlTY In the event that anyone or more of the provisions hereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall riot effect the other provisions, and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. Page 8 ARTICLE 11. GOVERNING LAW AND VENUE This Agreement shall be construed under and governed by, and in accordance with the laws of the State of Texas, and venue for any action arising under the terms and conditions of this Agreementshalllie in the state courts located in Dallas County, Texas or the United States District Court for.the Northern District of Texas, Coppell Division. ARTICLE 12. ENTIRE AGREEMENT This Agreement and the exhibits attached hereto, constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. No amendment,. modification, cancellation or alteration of the terms of this Agreement shall be binding on any party hereto unless the same is in writing, dated subsequent to the date hereof, and is duly authorized and executed by the parties hereto. ARTICLE 13. WAIVER OF TERMS AND CONDITIONS The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. ARTICLE 14. CAPTIONS The captions contained in this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. ARTICLE 15. COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and constitute one and the same instrument. Page 9 IN WITNESS WHEREOF, th?tJarties do hereby affix their signatures and enter into this Agreement as of the /6J day of IMZ; ,20 ()7 . ATTEST: CITY OF COPPELL By: I CHESAPEAKE Page 10 - .I m x ';j c- ;:+ G) .... ~ IL 11I0( ... I- 11le .rIormIllon rtquttled I, Hunlll r, order fer 111I, ..ncy ID prOYide In IIpPfOPI11lt r.'palIil. Pfeil,. tllQ'* ror recl<pt al tn.. lVI'''' iI1 our olrlllll at IUIt \'11'0 _~. "fer. < CIl 'PS oplr.1IM bqna. DIle III lrIe ......, of ... "'quNll. I( 1m II, n lIlilf III dllflOU~ far IJlIO n'"~IIII1.pholrw Inquil1el ClIIIIpllll. _ I~e HIIOI'It lNIl (toldenrM) t;r IY '"' 'fOIl /11II, Ind mti ,lit lIlp :J Ihl'" olll1e ....shMl &at of OIIIOn-DllUd ronn. 11I1'" 11ll1fI1ll till Iddrcn hlDw One aIlNlII......... Ol/r ,...,DO" ... H ftIIIIH 10 yw. Anvln.r a: ~ ...011 III S8l'IIlI lha Ip~,n"l "Ilfl<:! omOl Dl ~ ~,iltDld ~Clll1mISllon IncRYlllv;JI... ,n1~1M to requelt Ind ,.'otW Nr ~fsol1lllnlllrmlllOf1 1I,1I1II,."cy ,.1Im 0!1 ~I fafml 1'n.y 1111' 1110 tttvlany orran In ,hetr infOl"""~oO OlI"lclld. To rlVI.... Ivch nf6o'1\'\Mloo. co"ltIcl u..l 1121250-3:112 . you h.... 1lUC$1...,. I" how 16 r.n .utllll. form ... g abDUl "I 8IIfIICI eNint pco.-aon. ,lel.. conlllcl us II 512f.23t-DS1S LOOlll J30 SlIrf,Ct1 Cuing - Me 1~1 Q,te 12/27/2007 TCEQ Fi,. No.: ac. 86 T~12 03^'3"" P.O. Box 13017 vl3lf AuI1In. TX 71711-3Oa _ lb. Kri.tyV.,. bv IiI Soencer 512-918-1062 lu \ ~ M NlIl'IIe Cf ptIrIOI1 p~ tNI rtQUe$\ & phone No. (~th..... coat) Q'8\0t9.1 ...tsaIi :lil: Z ~ ,... ;;C f ~ If ~ ~~ 12/27/2001 17:29 F^~ 512 239 1003 THQ -t B SPENCER ~OO~wvr 6 DEPTH OF USABLE-QUALITY GFlOUNO WATeR TO BE PROTECTED l(,1.J PL...... RE.A1l ALL INSTRUCTIONS r------------~----------~--- I I !i ~ ~ II Ma,rll'\G "'4(lrftJ I ~ QlcJahoml City. Oklahoma 73154~96 : CIty and '1Itt Z Codt J ALWA VS INCLUDf A MAP SHOWING YOUR WELL SITE A~IJ JI;[L -srJRROONlJ1'N'G" SCJRVETS- - - - - - -- Ch8.apHkeODel1ltina Inc. OPER# 147715 COlTl8ny (qltrttor'J ~ u on RRC IOfm W.1) p. O. Box 18496 COUNTY 0.... SlIrv,y NaMe HeiR of Jamn Gibson 61Qd<~. _~ Township Section or S\ll'Va~ No. _ _ (Of) Lot No. Ab5tr.gt No. A- 1711 LEASE Name FaIlOWSIlI!) WeU No. 6H Distances. Il'IlIttl, .nd directions mUlured at nlilht ."ireS from I'ct! of two intersecting 0 Section or 81 SUMY Inn (NOT L~I LINai) HI '"1 from Eat line and 7~ feet from S2uth 'ill.. Dlst.nce (in mnt$).nd direction from" "arby town In this County (name !he townl Within the cl~ Ilmll of C<xloell nn! ABOVE INFORMAnON IN THIS BLOCl( MUST BIi COt.lPl~1! AND CORRECT APUI RRC L.easA No. __ RRC Di.t No.lli GPS Coo~.(longlla\ or X-Y state plane) X.2143827 Y-4I1I771 NAD 11127 Elevation ~ Toblr Deplt'l 8000 Geologkll"m. at T.O. .1 PlIlpOse of tile ReQuest: IiJ New Orin eRe-entry 0 Plug & Abandon C Other (IPectfy) Is this." amended reques17 DYes .. No Pre\liOUI File No. foe' lhis _n: SC'_ . Log included of urn. or nearby WI!III (The applicable type of well log that ShOWS ltIa aquifers,) pieQe provide aloca1lon ITlJ/.l orAPIIJ leI mlllchllllOl1 .tLWAYS IttacI'l tI'lt electric log of any W8l1 that is to be rMnterlld. Mdition,J rlmlfl(,s: To protect usable-qu.lity gfound water at this locadon, !he TI:'XAS (:OMMIS510N 01'1 f,NVIRllNMI:'N rAL OUA~lTY recommendS: CO-DALLAS,SUR-GIBSON J_,LBB-PELLONSHIP,A-1116,#6/1825 The interval trOll the land aut'faoe to 20 f.et below the bue of the ere-taceous-age becW IlUIt be protwted. t'be base of the CretaceOWl is ..timated to occur a.t a ~ ~ depth of 1825 feet. ~. i' ,...fiI fi~ o~ a December 27, 2007 P.G. ~Sdcoc;..q 1CEQ ~~TCBJ NOTE: UnlCN IC;IIH other"'in. Ihis recommc:nduion i~ i ntcl1ded to apply MIy 10 Ihe sul~ecr well and nllt (of Ir,...",Ide: ~IC:: AP~f(W.1 lIf the ..ell completion melllodl ftJr prolllCtino of Ihi! lfO~nd \01Ilc::r (all~ urtder tile jun,dlCtion or [h~ RDllroi1tl ('/'lffiIl1L~lllft of 1'c'as l1Ibi rmIlII",,,dJldoa ill ie\eded fe, Ihc nannul drtJlina- prlchrdaa IlId pllll,;.11II a~"'tiOll-' aaly. It fOCI aM Ipply la 5111>...1('( dl~pa..1 optr.dol.lnlo n nonpn)dltdyc Ion (RRC \1'-1.) TCIQ-GGSI (Rev. 12..1)..2003) - -.l I I J I ~ m >< ::::r -. c- ;:::+ I 1..- OO\.werH .. Federal Aviation Administration Air Traffic Airspace Branch, ASW -520 2601 Meacham Blvd. Fort Worth, TX 76137-0520 Aeronautical Study No. 2007-ASW-II729-0E Issued Date: 01/03/2008 Tom Bettis Chesapeake Energy Corporation 30 I Commerce Street, Suite 600 Fort Worth, TX 76102 **TEMPORARY DETERMINATION OF NO HAZARD TO AIR NA VIGA TION** The Federal Aviation Administration has conducted an aeronautical study under the provisions of 49 U.S.C., Section 4478 and if applicable Title 14 of the Code of Federal Regulations, part 77, concerning: Structure: Location: Latitude: Longitude: Heights: Drilling Rig Fellowship 6H Coppell, TX 32-57-25.92N NAD 83 97-01-53.95W 175 feet above ground level (AGL) 714 feet above mean sea level (AMSL) This aeronautical study revealed that the temporary structure does not exceed obstruction standards and would not be a hazard to air navigation provided the following condition(s), if any, is (are) met: Based on this evaluation, marking and lighting are not necessary for aviation safety. However, ifmarking and/or lighting are accomplished on a voluntary basis, we recommend it be installed and maintained in accordance with FAA Advisory Circular 70/7460-1 K Change 2. See attachment for additional condition(s) or information. It is required that the manager of See Attached Page be notified at least 5 business days prior to the temporary structure being erected and again when the structure is removed from the site. It is required that the manager of See Attached Page be notified at least 5 business days prior to the temporary structure being erected and again when the structure is removed from the site. Additionally, please provide contact information for the crane operator on site in the event that Air Traffic Control requires the crane to be lowered immediately. This determination expires on 07/03/2009 unless extended, revised or terminated by the issuing office. NOTE: REQUEST FOR EXTENSION OF THE EFFECTIVE PERIOD OF THIS DETERMINATION MUST BE POSTMARKED OR DELIVERED TO THIS OFFICE AT LEAST 15 DAYS PRIOR TO THE EXPIRATION DATE. Page 1 of 5 This determination is based, in part, on the foregoing description which includes specific coordinates and heights. Any changes in coordinates and/or heights will void this determination. Any future construction or alteration, including increase to heights, requires separate notice to the FAA. This determination does include temporary construction equipment such as cranes, derricks, etc., which may be used during actual construction of a structure. However, this equipment shall not exceed the overall heights as indicated above. Equipment which has a height greater than the studied structure requires separate notice to the FAA. This determination did not include an evaluation of the permanent structure associated with the use of this temporary structure. If the permanent structure will exceed Title 14 of the Code of Federal Regulations, part 77.13, a separate ae,'onautical study and FAA determination is required. This detenl1ination concerns the effect of this temporary structure on the safe and efficient use of navigable airspace by aircraft and does not relieve the sponsor of compliance responsibilities relating to any law, ordinance, or regulation of any Federal, State, or local government body. A copy of this determination will be forwarded to the Federal Aviation Administration Flight Procedures Office if the structure is subject to the issuance of a Notice To Airman (NOT AM). If you have any questions, please contact our office at (817) 838-1996. On any future correspondence concerning this matter, please refer to Aeronautical Study Number 2007-ASW-II729-0E Signature Control No: 553319-101477327 Bruce Beard Specialist (TMP) Attachment(s) Additional Inforn1ation Map(s) Page 2 of5 Additional information for ASN 2007-ASW-11729-0E Well Site: Fellowship 6H AGL = above ground level / AMSL = above mean sea level SlAP = standard instrument approach procedure MDA = minimum descent altitude / DA = descent altitude ARP = Airport Reference Point (center of airport) The site will be located approximately 3.63 NM north of the DFW International Airport ARP. Conditions for Operation of Temporary Drilling Rig 1. ABSOLUTELY MANDA TORY - NOTIFY THE FAA AT LEAST 5 BUSINESS DAYS PRIOR TO THE DRILLING RIG BEING ERECTED. SUCH ADVANCE NOTICE IS REQUIRED BECAUSE AN SlAP MUST BE MODIFIED TO ACCOMMODATE THE DRILLING RIG. THIS NOTIFICATION SHOULD BE MADE TO THE FAA DURING BUSINESS HOURS MONDAY THROUGH THURSDAY 7:30 A.M. TO 4:00 P.M. AT 817-838-1999, 817-838-1996, or 817-838-1994. 2. If you elect to make notification via the telephone, DO NOT LEAVE A VOICE MAIL MESSAGE. You must notifY an actual person. 3. E-mail notification is acceptable and preferred, but you must send it to the following 3 address. This is in case somebody is out of the office bruce.beard@faa.gov / linda.steele@faa.gov / debbie.cardenas@faa.gov 4. Though not required, recommend that the temporary drilling rig have some type of obstruction light mounted on top of the drilling rig. 5. NotifY the DFW International Airport Duty Office at 972-574-3112 at least 72 hours prior to raising the temporary crane and when the project is complete and the temporary crane is removed from the site. 6. The DFW International Airport Duty Office shall follow normal procedures and coordinate the temporary crane with the DFW Airport Traffic Control Tower. 7. ABSOLUTELY MANDATORY - NOTIFY THE FAA WHEN THE PROJECT IS COMPLETE AND THE DRILLING RIG IS REMOVED FROM THE SITE. THIS NOTIFICATION IS NECESSARY SO THAT THE AFFECTED SlAP CAN BE RETURNED TO NORMAL. THIS NOTIFICATION SHOULD ALSO BE MADE TO THE FAA DURING NORMAL BUSINESS HOURS MONDAY THROUGH FRIDAY AT THE PHONE NUMBERS LISTED IN #1 ABOVE. DO NOT LEAVE A VOICE MAIL MESSAGE. YOU MUST NOTIFY AN ACTUAL PERSON. 8. E-MAIL NOTIFICATION TO THE:3 E-MAIL ADDRESSES LISTED IN #3 IS ACCEPTABLE, BUT PLEASE SEND YOUR NOTIFICATION TO ALL 3 E-MAIL ADDRESSES. 9. The temporary drilling rig will have the following impact at the DFW International Airport: > LOC R WY 1 7C < Page 3 of 5 DFW ILS OR LOC RWY 17C... RAISE S-LOC 17C MDA FROM 1000 TO 1020. 10. This determination shall be valid until 07-03-2009. While the determination is valid, it is permissible to go back on this site without submitting a new FAA Form 7460-1, "Notice of Proposed Construction or Alteration", provided: a. The temporary drilling equipment does not exceed a maximum height of 175 feet AGL. b. Conditions #1 through #8 above are met. II. FAA FORM 7460-1, "NOTICE OF PROPOSED CONSTRUCTION OR ALTERATION" SHALL BE SUBMITTED FOR ANY TEMPORARY DRILLING EQUIPMENT GOING BACK ON THIS SITE THAT EXCEEDS THE MAXIMUM ALLOWABLE HEIGHT OF 175 FEET AGL. Page 40f5 Sectional Map for ASN 2007-ASW-11729-0E ~ ''''---'-'''''''->1 .;><-'- "...._".".' ''': f.r.:..... . ""..-", i I. . '.i' ',cr, \ l,. " .,.J .:}) ..; . .', l' ! I. '."1' ' :,j ISl/ Page 5 of 5 - m >< ::r -. c:r ;:::+: L.- HAZARDOUS MATERIALS MANAGEMENT PLAN fX\tVo~ \ CONTENTS INTRODUCTION LOCATION DESIGN AND POTENTIAL HAZARD CONTROL HAZARDOUS MATERIAL CONTAINMENT REGULATORY AGENCY NOTIFICATION COMPANY CONTACTS SITE PLAN: DRILLING AND PRODUCING SITE LOCATOR MAP -- HAZARDOUS MATERIALS MANAGEMENT PLAN Chesapeake Operating, Inc. is committed to the safety and well being of its employees, contractors, and the general public. Chesapeake Operating, Inc. is equally committed to the prevention of pollutants and exposure to hazardous waste. The most obvious steps in providing safety and hazardous waste protection are: informed and properly trained personnel and organization. Nevertheless, should a release or an incident of exposure occur, the following information is designed to minimize the effects caused by such an incident to the public, employees, and contractors, as well as the environment. ~.-- LOCATION DESIGN AND POTENTIAL HAZARD CONTROL There are two phases in the exploration for gas: drilling phase and post drilling or producing phase. During these two phases the location and potential hazards remain. Operator's management and oversight will continue so as to best control any potentially hazardous condition. Drilling Phase: (see attached drilling and producing exhibit) The construction of the location is supervised by the company's field man as well as the rig supervisor who performs on site inspections. Ditches below the rig floor, substructure, and fuel storage tanks are designed to divert any flow of such liquids to the working pits. The size of the working pits is adequate to contain maximum spillage. The water and drilling mud used in the drilling of the well are initially stored in either a steel circulating pit or an earthen reserve pit located near the well. The well site is manned 24 hours per day through the drilling phase. The drilling crew is trained in operations, safety, and maintenance of the drill site and facility. Any problems at the drill site are immediately reported the rig supervisor. Ultimately, the water and drilling mud are removed by tank trucks and disposed of in accordance with the Texas Railroad Commission requirements. The surface is then returned to as near its original condition as is practicable. Producing Phase: (see attached drilling and producing exhibit) Wastewater and condensate will be collected and stored in a 210 barrel low-profile tank within the well site and out of any of the designated floodplain. Each day the company field pumper shall inspect the well for any potential operational problems as well as any releases of gas or hazardous materials from any equipment including the tanks described above, the separator or any other equipment on the location. The tank will be located within a secondary containment ring which has a non-permeable berm or liner capable of holding one and one-half times the tanks' capacity. The tanks are also equipped with a sensing device which will shut off the well should the tanks become full. The tanks' contents shall be emptied by a commercial operator and disposed of in accordance with the Texas Railroad Commission requirements. HAZARDOUS MATERIAL CONTAINMENT If during the drilling phase or the producing phase of a well, any hazardous material including oil, distillate, and/or wastewater is discharged on site, the personnel will give immediate corrective response: A. Shut off source of leakage, B. Take steps necessary to prevent materials from spreading by using absorbent material, diverting the material, or even dams or dike, C. Approximate the size of the area affected, D. Call supervisory persons reporting details listed below, E. Assist and coordinate the efforts to prevent additional spreading and clean up. A report to the company shall be made immediately to the company personnel by the on site supervisor so that the company supervisor can make a determination as to the magnitude of any contaminate, if any, and report the control and clean up to the agency having jurisdiction. The report should include: Name Well Name and Location Date Time Sighted Size Origin Area Affected Time of Containment Material Leaked Such information is necessary for assessing the clean up procedure and agency reporting. REGULATORY AGENCY NOTIFICATION Environmental Protection Aqencv: Notification of any spill shall be given initially to the EPA National Response Center at the following number: 1-800-424-8802. Subsequent notification shall be given to the appropriate EPA Regional Office. Information shall be provided orally within 24 hours from the time the Operator becomes aware of the circumstances. A written report shall also be provided within five days of the time the Operator becomes aware of the circumstances. The written report shall contain a description of the noncompliance and its cause; the period of noncompliance, including exact dates and times, the nature of correction procedures to be initiated and steps taken or planned to reduce, eliminate and prevent recurrence of the noncompliance. The report shall be forwarded to: SPCC/FRP Coordinator U.S. EPA-Region VI (6SF-RP) 1445 Ross Avenue Dallas, Texas 75202-2733 EPA Spill Line: 214-665-2222 The EPA Regional Administrator may waive the written report on a case-by-case basis if the oral report has been received within 24 hours. Additional Aqencv Notification (where applicable) Texas Railroad Commission (RRC) District 5-Kilgore 901-984-3026 Texas Railroad Commission (RRC) District 9-Wichita Falls (Barnett Shale Gas) 940-723-2153 Texas Commission on Environmental Quality (TCEQ) 512 -463-7777 U.S. Army Corps of Engineers 903-465-4990 U.S. Fish and Wildlife Service Arlington Ecological Services Field Office 817-277-1100 EMERGENCY CONTACT TELEPHONE NUMBERS Chesapeake Emergency Number 1-800-566-9306 Chesapeake Arc Park Field Office 1-817 -759-2450 Tim Dugan Office: 1-817-759-2450 Cell: 1-817-727-2485 B. K. Gibson Office: 1-817-556-5825, x. 14 Cell: 1-817-727-2486 Gary Dill Office: 1-817-556-5825, x. 5825 Cell: 1-903-343-5411 Steve Cosh ow Office: 1-817-556-5825, x. 15 Cell: 1-817-559-2901 City of Coppell EMERGENCY 911 Gas Inspector - Larry Hulsey 220 Oak Street Graham, Texas 76450 Office: 1-940-549-5261 Cell: 1-817-296-4828 Pager: 1-888-599-2009 Tarrant County Sheriff Dallas County Sheriff 1-817 -884-3270 1-214-653-3465 Texas Railroad Commission District 9 (Barnett Shale Gas) District 5 (Oil) 1-940-723-2153 1-903-984-3026 EPA National Spill Response Center EPA Dallas 1-800-424-8802 1-214-665-2222 Hazardous Materials Manaqement And Inventory Statement lDrillinQ Phase), Operator: Chesapeake Operating, Inc. 6100 N. Western Avenue Oklahoma City, OK 73118 Fellowship 6H: +/- 799' from the south survey line of the J Gibson Survey, Abstract No. 1716 and +/- 688' from the east survey line of the J Gibson Survey, Abstract No. 1716. SEE ATTACHED MSDS FOR TYPICAL DRILLING MSDS AVAILABLE ON LOCATION Hazardous Materials Mana~ement And Inventory Statement JProducina Weill Operator: Chesapeake Operating, Inc. 6100 N. Western Avenue Oklahoma City, OK 73118 Fellowship 6H: +/- 799' from the south survey line of the J Gibson Survey, Abstract No. 1716 and +/- 688' from the east survey line of the J Gibson Survey, Abstract No. 1716. . _~ ~._.v:.;k'f')fP /!i!'...... ENERGY Material Safety Data Sheets Have been submitted to the City for review. Should you need additional copies, please contact us immediately. EMERGENCY RESPONSE PLAN >- CONTENTS INTRODUCTION EMERGENCY PROCEDURE FOR FIRE OR GAS RELEASE REGULATORY AGENCY NOTIFICATION COMPANY CONTACTS SITE PLAN: DRILLING AND PRODUCING SITE LOCATOR MAP INTRODUCTION Chesapeake Operating, Inc. is committed to the safety and well being of its employees, contractors, and the general public. Chesapeake Operating, Inc is equally committed to the prevention of pollutants and exposure to hazardous waste. The most obvious steps in providing safety and hazardous waste protection are: informed and properly trained personnel and organization. Nevertheless, should a release or an incident of exposure occur the following information is designed to minimize the effects, caused such an incident, to the public, employees, and contractors as well as the environment. Coordinated responses are necessary for hazardous materials, release, fire, or other emergency situations. Company efforts and outside services as well as other governing agencies may be required, and the material contained herein will aid in such efforts. EMERGENCY PROCEDURE FOR FIRE OR GAS RELEASE SAFETY AND EQUIPMENT INSPECTION After the rig is erected and before drilling operations have commenced, the rig supervisors and the operator's field man shall conduct a safety inspection of the premises and locate all safety equipment (including fire extinguishers) and advise all personnel in the correct procedures in correcting any hazards which may exist. All equipment will be properly rated, located and sized for the drilling operation. Rig personnel shall be instructed as to the quick response and safe extinguishing of fires that might occur, together with the safe and correct procedure in using the blowout preventer. The blowout preventer (BOP) shall be inspected and properly installed and tested prior to drilling out the surface casing. If a gas "kick" should occur during the tripping in or out of the hole, the pumps shall be shut down and a check shall be made for gas flow at the surface. If a flow is discovered, the blowout preventer shall be closed and well control procedures initiated. During the producing phase, the pumper will inspect and maintain all fire extinguishers which might be used for controlling small fires which might occur for any cause. NOTIFICATION If, in the event a well cannot be controlled or in the event of a fire which cannot be extinguished, the rig supervisor or in the case of a producing well, the pumper, shall contact 911 Emergency and provide the emergency system with the following: 1. Type & emergency 2. Well location and well name 3. If fire-source of material 4. Direction and distance to nearest residences, etc. 5. Wind direction and approximate speed 6. Injuries and type of injury 7. Notify company personnel SECURE THE AREA Once the emergency system has been informed, the field supervisor or pumper shall dispatch an employee to the entrance of the lease road (at the public access) so as to confirm and direct emergency vehicles. The employee shall also restrict the entry of any unauthorized persons or vehicles. REGULATORY AGENCY NOTIFICATION Environmental Protection AQencv: Notification of any spill shall be given initially to the EPA National Response Center at the following number: 1-800-424-8802. Subsequent notification shall be given to the appropriate EPA Regional Office. Information shall be provided orally within 24 hours from the time the operator becomes aware of the circumstances. A written report shall also be provided within five days of the time the operator becomes aware of the circumstances. The written report shall contain a description of the noncompliance and its cause; the period of noncompliance, including exact dates and times, the nature of correction procedures to be initiated and steps taken or planned to reduce, eliminate and prevent recurrence of the noncompliance. The report shall be forwarded to: SPCC/FRP Coordinator U.S. EPA-Region VI (6SF-RP) 1445 Ross Avenue Dallas, Texas 75202-2733 EPA Spill Line: 214-665-2222 The EPA Regional Administrator may waive the written report on a case-by-case basis if the oral report has been received within 24 hours. Additional AQencv Notification (where applicable) Texas Railroad Commission (RRC) District 5-Kilgore 901-984-3026 Texas Railroad Commission (RRC) District 9--Wichita Falls (Barnett Shale Gas) 940-723-2153 Texas Commission on Environmental Quality (TCEQ) 512-463-7777 U.S. Army Corps of Engineers 903-465-4990 U.S. Fish and Wildlife Service Arlington Ecological Services Field Office 817-277-1100 EMERGENCY CONTACT TELEPHONE NUMBERS Chesapeake Emergency Number 1-800-566-9306 Chesapeake Arc Park Field Office 1-817 -759-2450 Tim Dugan Office: 1-817-759-2450 Cell: 1-817-727-2485 B.K. Gibson Office: 1-817-556-5825, x. 14 Cell: 1-817-727-2486 Gary Dill Office: 1-817-556-5825, x. 5825 Cell: 1-903-343-5411 Steve Coshow Office: 1-817-556-5825, x. 15 Cell: 1-817-559-2901 City of Coppell EMERGENCY 911 Gas Inspector - Larry Hulsey 220 Oak Street Graham, Texas 76450 Office: 1-940-549-5261 Cell: 1-817-296-4828 Pager: 1-888-599-2009 Tarrant County Sheriff Dallas County Sheriff 1-817 -884-3270 1-214-653-3465 Texas Railroad Commission District 9 (Barnett Shale Gas) District 5 (Oil) 1-940-723-2153 1-903-984-3026 EPA National Spill Response Center EPA Dallas 1-800-424-8802 1-214-665-2222 PRODUCTION LAYOUT Four Strand Chain Link Fence around the Berm ....................~ . . . . . . . . . . , wt=k ' . . . . . . : +-, : : . . --"i i :..................,,, 100' / I I '\ /'---------------,~, f \ I I I I I I I I I~ 2l -----.. I I I ~ I ,I: I I " I , " J \ I. -------2"6;------- I I. ------;------.1- Berm is 2' x 5' around tanks Meter Run rA ~ ~ 48' 8'-1 b I '" I . . . . . . L ~ " ~ " ~ ~ 0 . 0 . 0 0 . . . . . . Pipe Rack Area '" '" '" '" '" '" 1 . 8- . . 8- 8- 0. 0. 0. a: a: a: a: a: a: u , I I ~ 6'~ T 36' 1 ~ :~T ;.;~ a ~~ W"",,,,,.." '-"1 .,- r 1 RIG LA YOUr t 150' from Wellbore to Crown Stand ~ 5'4"~ IB3' 10'2"+1 1: J'l a: co c :i2 ~ t 12'8"-+ .... en co i2 I+---- 22'--+1 T Doghouse & Crew House L 150' from Wellbore to Edge of Locatidn 32'2" .1 T 10' ....L I' 9{ by 6'6" ~r#1~~'m~[ 4~~ I -C27':::JT I- t' #2 Pump 1 Accumulator & Light Plant 4'8" . II .1 Fuel Tank & Water Tank J'l a: '" c :i2 ~ .. f e "- 35'4" 35'S" Mud House T 8'2" --.L 150' from WellbO!e to Backyard +--- 12' ---. b '" . .~ I- ~ t i5 +--- 12'---+- b '" . 'i! I- o 'g :1! ~ c . ~ o U +-12'-+ b '" . ';; '" o ~ ~ ~ 0. '0 ~ 1,000 . Fellowship 6H Bass Pro Dr W Bethel Rd 2,000 Feet 4,000 .! III en .s:: u 0 ...J -- Bethel W ethel Rd 't:I s:: 0 1:: E 0 E Q. nI GI :J: GI Lt Burns .s:: r::: N southwestern. Go north on Coppell Road for .4 miles. Turn left onto Bethel Road for 1.5 miles. Turn right onto South Royal Lane for .5 mile. Turn left onto Creekview Drive for .4 miles. Our lease road will be on the right towards the end of Creekview 1:: o Ql GI GI .. u.. ! ~~ Beth., " Cotton Cottonwood GI s:: :::i ~ s:: :l o U Legend . Proposed Well Site Emergency Routes .... City of Coppell Fire Dept Creekview iii ~ o 0:: c: ...J (ij o c:: (/) Fritz I Ches~""-ake ~ERGY Fellowship 6H Emergency Route Created: December 21, 2007 P.lantation Kaye Cooper iii Q, Q, o <.> s:: Cozby -0 III Brooks .. GI 't:I c Dillard c( GI C - 0 iiil u; .s:: .s:: ,g 1:: .- _ca ~I ~ iii Q. 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I i [~~ [ ~"J ~ ~ ~ )'. ~ ~ ~ j ~ 0 8 ~ i ~ t n! ~ ,;J 3 ,. 8 ~ ~ Ii Ii Ii i : . a- . . ~ a- . ~ ~ q 1 . ~ . ~ in [ l 1 ! I I ~ ~ i. 0 !!c i a . ~ ~ i ! " '" '" D ;;j :..--- $ J':=-- '/ o D !~ !i iii HALFF 1201 NORTH BOWSER ROAD RICHARDSON. TEXAS 16061-2:l76 ;~~~\~o: Chesapeake FELLOWSHIP 6H WELL TREE SURVEY Coppell, 1e"". ~ l-1 I I I - -.l m >< :::J rr ;:+: ^ - Ex.nt'o\i-t \z. ACCEPTANCE AND INDEMNITY AGREEMENT This Acceptance and Indemnity Agreement (this "Agreement") is made and entered into as of this 8th day of January, 2008 by and between the City of Coppell, Texas (the "City"), a home rule municipal corporation situated in Dallas County and Chesapeake Energy Corporation, an Oklahoma corporation on behalf Chesapeake Operating, Inc, it's wholly owned subsidiary ("Chesapeake"). WHEREAS, the City has issued to Chesapeake one or more gas well permits (the "Permit") covering drilling, production, and related activities at the gas wells (the "Well") identified in the Permit; WHEREAS, pursuant to City Ordinance No. 2007-1150 (the "Ordinance"), Chesapeake (as defined in the Ordinance) who has a net worth of not less than twenty-five million dollars ($25,000,000) may substitute an acceptance and indemnity agreement in lieu of the bond and insurance requirements set forth in the Ordinance; WHEREAS, as of the date hereof, Chesapeake has a net worth of not less than twenty-five million dollars ($25,000,000) and has agreed to provide this Agreement as an acceptance and indemnity agreement in lieu of the bond or irrevocable letter of credit and insurance requirements as permitted in the Ordinance; and WHEREAS, in lieu of the bond and insurance requirements, the City hereby approves and accepts this Agreement, as set forth in the Ordinance. NOW, THEREFORE, IT IS FURTHER AGREED THAT: 1. This Agreement shall commence and become binding as of the date of issuance of the Permit and shall continue until the Permit expires or is terminated or revoked. 2. The City and Chesapeake acknowledge and agree that pursuant to a sworn statement from persons familiar with the financials of Chesapeake filed with the City before the execution of this agreement and updated on the anniversary date of this agreement each year, Chesapeake has a net worth of not less than twenty-five million dollars ($25,000,000) as ofthe date hereof. 3. In accordance with, and pursuant to Ordinance, Chesapeake does hereby expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, or now has or may have, or assigns may have, or claim to have, against the City and/or its departments, agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, in any way incidental to or in connection with the performance of the work performed by Chesapeake under a Gas Well Acceptance and Indemnity Agreement/Chesapeake Energy Page I of 6 23221 Permit. Chesapeake shall fully defend, protect, indemnify, and hold harmless the City, its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the City, its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by Chesapeake, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by Chesapeake under a Gas Well Permit. CHESAPEAKE AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS DEPARTMENTS, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, SUCCESSORS, ASSIGNS, SPONSORS, OR VOLUNTEERS FROM ANY LIABILITIES OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS, OR JUDGMENTS AGAINST THE CITY, ITS DEPARTMENTS, ITS OFFICERS, AGENTS, SERVANTS, OR EMPLOYEES, CREATED BY, OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE CITY OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF THE CITY OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS. IT IS UNDERSTOOD .AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY CHESAPEAKE TO INDEMNIFY AND PROTECT THE CITY AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE CONSEQUENCES OF THE- NEGLIGENCE OF THE CITY AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE. 4. Chesapeake agrees to defend against any claims brought or actions filed against City with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or filed. Chesapeake agrees to reimburse City for any reasonably necessary expenses, attorneys' fees, or costs incurred in the enforcement of any part of this Agreement. 5. In the event the City becomes aware of a claim, or claims, for which Chesapeake has agreed to indemnify the City pursuant to this Agreement, the City shall notify Chesapeake of said claim or claims within ten (10) business days after the City is presented with any indemnifiable claim or claims. Any notice or other communication Acceptance and Indemnity Agreement/Chesapeake Energy Page 2 of 6 23221 required or permitted to be given hereunder shall be in writing and shall be sent by certified U.S. mail return receipt requested or delivered by hand or by overnight or similar delivery service, fees prepaid, to Chesapeake at: Chesapeake Energy Corporation 6100 N Western Oklahoma City, OK 73118 Attn: Stacy Roberts, Risk Manager Phone: 405-879-1472 In the event Chesapeake desires to change the address at which notice is to be given hereunder, Chesapeake shall notify the City of such change. Except as otherwise specifically provided in this Agreement, notice so given shall, in the case of notice given by certified mail (or by such comparable method) be deemed to be given and received three business days after the time of certification thereof (or comparable act), in the case of notice so given by overnight delivery service, on the date of actual delivery, and, in the case of notice so given by personal delivery, on the date of personal delivery. It is further agreed that Chesapeake's obligation to indemnify the City pursuant to this Agreement shall not commence until the Notice required herein has been provided. 6. The City does not waive, nor shall it be deemed to waive, any immunity or defense that would otherwise be available to it against claims arising by third parties. 7. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior understandings or agreements with respect to the subject matter hereof. 8. No amendment, modification, cancellation, or alteration of this Agreement shall be binding on either party hereto unless the same is in writing, dated subsequent to the date hereof, and is duly authorized and executed by the parties hereto. 9. This Agreement shall be construed under and governed by, and in accordance with the laws of the State of Texas, and all obligations created by this Agreement are performable in Dallas County, Texas. 10. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action shall lie in state courts located in Dallas County, Texas or the United States District Court for the Northern District of Texas - Dallas Division. This Agreement shall be construed in accordance with the laws of the State of Texas. 11. This Agreement may be executed in counterparts, each of which shall constitute an original and which, when taken together, shall constitute one entire agreement. Acceptance and Indemnity Agreement/Chesapeake Energy Page 3 of6 23221 IN WITNESS WHEREOF, the parties hereby affix their signatures and enter into this Agreement as of the date first shown above. CITY CITY OF COPPELL, TEXAS By: City Manager APPROVED AS TO FORM: By: City Attorney ATTEST: By: OPERATOR By: \\\\\111111/'11/ ,,~~\\~~~~.9 y"6//// ~~'C/)'fl.poii;qj.....% :::l.JJ/ ~"~~ ::: Q. ... ' ""'.... ~<t: t SE AL \u~ - Cf) . 4-~. :;0 - ~~\ }}>~ -;.-..r\o ...;:!;:: -;'~"\" ~ ..... "0" ~Vf ......,~AHO~l:.....~ S ~ ..... ..... ~~ ~." .......011... " '// \' III/ \\\' //11/111\1\1\\\\ Acceptance and Indemn ity Agreement/Chesapeake Energy Page 4 of 6 23221 STATE OF TEXAS ~ S COUNTY OF DALLAS ~ Before me, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared of the City of , Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Benbrook, Texas and that he executed the same as the act of such City of Texas for the purposes and consideration therein expressed and in the capacity therein stated. Given under my hand and seal of office this the _ day of ,200_ [SEAL] Notary Public in and for the State of Texas Acceptance and Indemnity Agreement/Chesapeake Energy Page 5 of 6 23221 * * * * * * * STATE OF OKLAHOMA ~ ~ COUNTY OF OKLAHOMA ~ Before me, the undersigned authority, a Notary Public in and for the State of Oklahoma, on this day personally appeared Jennifer M. Grigsby, Senior Vice President, Treasurer and Corporate Secretary, for Chesapeake Energy Corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of Chesapeake Energy Corporation and that he executed the same as the act of such Operator for the purposes and consideration therein expressed and in the capacity therein stated. /f Given under vo.nlAfA 'flJ my hand and ,200~ . seal of office this the ~ day of ;\",\\\\\UIIIIIII"'I;,1:. s-~o~..'::;."i!.t.llJd~~ .$ "1:'''OTA/i;:,. \<'~ [SEAl: r\ %. = , 02019561; " ~ ~~EXP.11125I1OJ" g ~.,,~.. A ~~-~$ ~ ;>'~'._.lJBL\9."~~O$ ~.;" o;;'''o''-\''~''''~ "'111"'111\\\\\\\ otary Public in and for the State of Oklahoma. Acceptance and Indemnity Agreement/Chesapeake Energy Page 6 of 6 23221 - \l m x ::J'" -. 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