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HomeMy WebLinkAbout20140508Notice of Affiliate Transaction.pdf\PectFlEonp May 8,2014 VIA OVERNIGHT DELIVERY Idaho Public Utilities Commission 472West Washington Boise,ID 83702-5983 Attention: Re: Dear Ms. Jewell: This letter will serve as notice pursuant to Commitment I l7(2), incorporated in the Idaho Public Utilities Commission Order No. 29973 issued February 13,2006, as supplemented by Order No. 29998 March 14, 2006, in the above-referenced proceeding, approving the acquisition of PacifiCorp by MidAmerican Energy Holdings Company (MEHC), of an affiliate interest transaction with BNSF Railway Company (BNSF) for a license to cross BNSF's railway corridor as part of the Company's rebuild of the Union Gap substation located in Union Gap, Washington. A verified copy of the License For Electric Supply Line Across or Along Railway Property, Tracking #14-3001 is included with this Notice as Attachment A. PacifiCorp is a wholly-owned indirect subsidiary of MEHC. MEHC is a subsidiary of Berkshire Hathaway, Inc. (Berkshire Hathaway). As of March 31,2010, Waren E. Buffet (an individual who may be deemed to control Berkshire Hathaway), Berkshire Hathaway, various subsidiaries of Berkshire Hathaway and various employee benefit plans of Berkshire Hathaway subsidiaries together held an interest in excess of 5 percent in BNSF. Therefore, Berkshire Hathaway's ownership interest in BNSF may create an affiliated interest in some PacifiCorp jurisdictions. The Company is rebuilding its Union Gap substation. Part of the rebuild includes constructing a new 230 kilovolt line, the Pomona to Union Gap line, which will require crossing BNSF's property. Without the license, the Company's ability to provide adequate, safe, and reliable service to its customers would be diminished. Using a different route for the line would add considerable expense to the project. The Company will pay BNSF $3,000 for the license and $600 in processing fees. The Company will also reimburse BNSF for any costs for BNSF-provided flaggers. Obtaining the license is in the public interest because it allows the Company to install and maintain facilities necessary to provide electric service and to meet its obligation to provide safe and reliable electric service. Not having the license would mean that the Company would not be able to meet R. Jeff Richards Vice President and General Counsel 201 S. Main Street, Suite 2400 Salt Lake CiA, UT 84111 801-2204734 Olfice 801-2204058 Fax j eff. ri c h ar d@1t a cifi co rp. c o m Jean D. Jewell Commission Secretary PacifiCorp Notice of Affiliate Transaction Case No. PAC-E-05-8 Idaho Public Utilities Commission May 8,2014 Page2 its obligation to provide electric service. As the property owner, BNSF is the only entity that can provide this license to the Company. Please do not hesitate to contact me if you have any questions. Best Regards, R. JeffRichards Vice President and Genoral Counsel PacifiCorp Enclosures l. Law Departnent Approved ContractNo. 14-3001 BFNo. LICENSE FOR ELECTRIC SUPPLY LINE ACROSS OR ALONG RAILWAY PROPERTY @ectric Lighq Power Supply,Irrespective ofVoltage, Overhead orUnderground) TIIIS LICENSE ("License'), made as of the lo day of April,2014 ('Effective Date") by and benreen BNSF RAILWAY COMPA!{Y, a Delawarc corporation ('Licensor") and PACIFICORP, an Oregon corporation ("Licensee"). NOW TEREFORE, in consideration of the mutual covenants contained herein, the parties agree to the following: GENERAL Licensor hcreby grants Licensee a non-exclusive license, subjcct to all rights, intercsts, and estates of third parties inoluding, without limitation, any leases, use righb, easements, liens or other encumbrances, and upon the rcrms and conditions set forth below, to construct, maintain, and use in strict accordance with thc drawings and specifications approved by Licensor as part of Licensoe's application process ("the Drawings and Speoifications") an elechic supply line conaining a maximum of four wirEs, together with its supporting or containing stnrctures ("Electic Supply Line") acrcss or along the premises of Licensor at or near the station of Union Gap, Courty of Yakimg State of Washington, Line Segment 0048, Mile Post 87.03, shown by bold line upon the print No. 60308, &td 4D5n014 markcd "Exhibit A"n attached herpto and made a part hereof ("Prcmises"). Licensee shall not distu$ any impovements of Liccnsor or Licensor's existing lessees, Licensees, eassment benefioiaries or lien holders, if any, or interferc with the usc of such improvements. Licensee shall use the Premises solely for construction, maintenance, and use of an Electic Supply Line in accordance with the lhawings and Specifications. Licensec shall not use the Prcmises for any other purpose. Licensee shall not uso or store hazardous substances, as dcfined by the Compehensive Environmental Response, Compensation, and Liability Act, as amended CCERCLA") or petroleum or oil as defined by applicable Environmental Laws on the Premises. In case of the eviction of Liceirsee by anyone owning or claiming title to or any interest in the Premises, Licensor shall not be liable to refund Licensee any compensation paid hereunder or for any damage Licensee sustains in connection therewith. Any contractors or subcontractors performing work on the Electic Supply Line or entering the Prprnises on behalf of Licensee, shall be deemed servants and agents of Licensee for purposm of this License. Form 421; Rev. O't 2OOs Law Departnent Approvcd TERM ContactNo. 14-3001 BF No. 6. This License shall oommenoe on the Effective Date and shall continue for a period of twenty-five (25) yean, subject to pnor termination as hereinafter described. COMPENSAIION 7. (a) Licensee shall pay Licensor, prior to the Effectivc Date, the sum of Three Thousand Dollars ($3,000.00) as oompensation for the use of thc Premises. (b) Licensee agrees to reimburse Licensor (within ttrirty (30) days after rcceipt of bills therefor) for all costs and e)ryenses incurrcd by Licensor in connection with Licensee's use of the Premises orthe pr€sence, conshtction, maintenance, and use of the Electric Supply Linc, including but not limited to the fumishing of Licensoy's Flagman and any vehicle rcntal costs incurrcd. Thc cost of flagger services provided by the Railway, when deemed necessary by the Railway's representative, will be borne by the Liccnsee. The estimated cost for one (l) flagger is $800.00 for an eieht (8) hour basic day with time and one-half or double time for overtime, rest days and holidays. The estimated cost for each flagger includes vacation allowance, paid holidays, Railway and unemployment insu mce, public liability and property damage insurance, health and welfare bcnefits, transportation, meals, lodging and supenision. Negotiations for Railway labor or collectivc bargaining agr€ements and rate changes authorized by appropriate Federal authorities may incrcase actual or estimated flagging rates. The flagging rate in effect at the time of performance by the Contractor hereunder will be used to calcularc the actual costs of flagging pursuant to this paragaph. (c) All invoices are due ttrirty (30) days aftcr the darc of invoice. In the event that Licensce shall fail to pay any monies due to Licensor within Utirty (30) days after the invoice date, then Licensee shall pay interest on such unpaid sum from thirty (30) days after its invoice darc to the date of payment by Licensee at an annual rate equal to (i) the grcater of (a) for the pcriod January I through June 30, the prime rate last published in Tlu Wall Sneet Jowrul in the preceding December plus two and one-half percent Q lDo/o), and for the period July I through December 31, the prime rate last published in Tlp Wall Street Jownal in the preceding June plus two and one-half percent (2 lnyi, or (b) twelve pcrcent (12W, or (ii) the morimum rate permited by law, whichever is less. COMPLIANCE WTTH LAWS 8. (a) Licensee shall observe and comply with any and all laws, statutes, regulations, ordinances, orderc, covenants, rcstrictions, or decisions of any court of competent jurisdiction ('Legal Requirements') rel*ing to the construction, mainte,nance and use of the Electric Supply Line and the use of the Premises. (b) Prior to eirtering the Prpmises, Licensee shall and shall cause its contactor to Form 421; Rcv. 0426,115 Law Deparfinent Appnrved Contract No. 14-3001 BF No. comply with all Licensor's applicable safety rules and regulations. Prior to oommencing any worft on the Prcmises, Licensee shall complete and shall requirc its contactor to complete the safety-training program at the following Inrcme Website "http://conhactororientation.com". This taining must be completed no more than one year in advance of Licensee's entry on the Prernises. DEFINITION OF COST AND EXPENSE 9. For the purpose of this Lioense, "cost' or 'costs* "exp€nse' or "cxpens€s" inoludes, but is not limited to, actual labor and material costs including all assignable additives, and material and supply costs at current value where used. RIGHT OF LICENSOR TO USE 10. Licensor excepts and reserves the right, to be exercised by Licensor and any other parties wtro may obtain written permission or authority from Licensor: (a) to maintain, renew, use, operate, change, modifr and relocate any existing pipe, power, communication lines and appurtenances and other facilities or structures of like charaoter upon, over, under or acrcss the Premises; to consEuct, maintain, nenew, use, operate, change, modiff and relocate any tracks or additional facilities or structurEs upon, oyer, under or across the Prcmises; or (c) to use the Prpmises in any manner as the Licensor in is sole discretion deerns appropriate, provided Licensor uses all commercially reasonable efforG to avoid material interference with the use of the Premises by Licensee for the purpose specified in Section 3 above. LICENSEE'S OPERATIONS Licensee shall noti$ Licensoy's Roadmaster, Andy Vulgas at602 West 3d Stneet, Ellensburg, WA 98926, telephone 2A6-625-6880, at least five (5) business days prior to constuction of the Electic Supply Line and prior to entering the Premises for any subsequent maintenance thereon. In performing the work described in Section 3, Lioensee shall use only public roadways to cross ftom one side of Licensods tracks to the other. Licensee shall, at irc sole cost and expense, construct and at all times mainain the Electric Supply Line in accordance with the National Electric Code. If the operation or maintenance of said Eleotric Supply Line shall at any time cause interference, including but not limited to physical interference from electromagnetic induction, electrostatic induction, or from stray or other cuments, (b) (a)I l. (b) (a)12. o) Form 421; Rcv. 04126/05 Law Deparfneirt Approved ContractNo. l+3001 BF No. with the facilities of the Licensor or of any lessee or Licensee of the Licensor, or in any mflrner intcrfere with the operation, maintcnancc, or use by the Licensor of its right-of-way, tracks, stnrctures, pole lines, signal and commrmication lincs, radio, or other equipment devices, other property or appurtenances thereto, Licensee agr€cs immediatcly to makc such changcs in its Eleotic Supply Line and furnish such protective devices and/or replaccment equipment to Liccnsor and its lessees or Licensees as shall be necrssary, in the judgcment of the Licensorts represcntative, to eliminate such interference. The cost of such protective devices and their installations shall be borne solely by Licensee. If any of the interference covercd by this paragraph shall be, in the judgement of the Licensor, of such importance to the safety of the Licensor's opcrations as to require immediate conective action, Licensee, trpon notioe from the Liceirsor, shall either, at the Licensods election, cease using said Electic Supply Line for any purpose whatsoever and rcmove safiie, or reduce thc voltage or load on said Electric Supply Line, or take such other interim protective measurcs as the Licensor may deem advisable, until the protective devices and/or rcplacement equipment required by this paragraph have been installed, put in opcration, tested, and found to be satisfactory to conEct the interference. Under no conditions shall Licensce be permitted to oonduct any tests, investigations or any other activity using mechanized equipment and/or machinery, or plaoe or stone any mechanized equipment, tools or other materids, within twenty-five (25) feet of the oenterlinc of any railroad tack on thc Prcmises unless Licensee has obained prior writteir approval fmm Licensor. Licensee shall, at its sole cost and expense, perform all activities on and about the Prcmises in suoh a manner as not at any time to be a source of danger to or intcrferpnce with the existence or use of present or future tracks, roadbed or property of Licensor, or the safe operation and activities of Licensor. If ordered to cease using the Premises at any time by Licensods personnel due to any hazardous condition, Licensee shall immediately do so. Notwithstanding the foregoing right of Licensor, the parties agree that Licensor has no duty or obligation to monitor Licensee's use of the Prcmises to determine the safe nature thereof, it being solely Licensee's responsibility to ensure that Licensee's use of the Premises is safe. Neither the exercise nor the failure by Licensor to exercise any rights granted in this Section will alter the liability allocation provided by this License. Licensee shall, at its sole cost and expense, and subject to the supemision of Liccnsot's Roadmaster, locate, construct and mainain the Electric Supply Line in such a manner and of such material that it will not at any time be a sowce of danger to or interference with the existence or use of prcsent or futrup tracks, roadbed or proporty of Licensor, or the safe operation and activities of its railroad. Further, the Electic Supply Line shall be constructed, installed and maintained in conformity with the plans and spocifications shown on the print attached hereto as Exhibit A and made a part heneof (which, if presenq ar€ to be deemed part of the fhawings and Specifications). Licensor may direct one of its field engineers to observe or inspect the construction and/or maintenance of the Electric Supply (a)13. o) Form 421; Rev.0426i05 Law Departrnent Approved ContractNo. l,t-3001 BF No. Line at any time for compliance with the Drawings and Specifications. If ordered at any time to halt construction or maintenance of the Electric Supply Line by Licensoy's personnel due to non-compliance with the samc or any other hazardous condition, Licensee shall immediately do so. Notrrithsanding the foregoing right of Licensor, the parties agree that Licensor has no duty or obligation to obsewe or inspect, or to halt work on, the Electric Supply Linc, it being solely Liccnsce's responsibility to ensur€ that the Electic Supply Lfurc is constructed in stict accordance with thc Drawings and Specifications and in a safe and workmanlike marmer in compliance with all terms hereof. Neither the exercisc nor the failure by Licensor to exercise any right grantod by this Section will alter in any way the liability allocation provided by this License. If at any time Licensee shall, in the sole judgment of Liccmsor, fail to properly perform its obligations undcr this Section, Licensor may, at its option and at Licensee's sole expense, arrange for the performance of such work as it deems nec$sary for the saf*y of its operations and activities. Licensee shall promptly rcimburse Licensor for all costs and expenses of such worlq upon receip of an invoice for the same. Lioensor's failure to perform any obligations of Licensee shall not alrcr the liability allocation herpunder. Licensee shall, at its sole cost and expense, nemove all combustible material from arcund wooden poles and will at all times keep the space around such poles free of such matcrial, and if rpmoval of such combustible matorial shall not be atrended to with fifteen (15) days after having been requested by Licensor to do so, Licensor shall have ttrc right itself to perform the wor* and Lioensee hereby agrces to reimburse Licensor for the expelrsc so inouned. During the constnrction and any subscquent mainEnancc pcrformed on Electric Supply Line, Licensee shall perform such work in a manner to prcclude damage to the property of Liccnsor, and preclude interference with the operation of its railroad. The constnrction of the Electic Supply Line shall be completed within one (l) par of the Effective Datc. Upon completion of the construstion of the Electric Supply Line and after performing any subsequeirt maintenance thereon, Licensee shall, at Licensee's own cost and expense, rcstore Licensor's premises to their former state as of the Effective Date of this Liccnsc. If at any time during the term of this License, Licensor shall desire the use of is rail corridor in such a manner as would, in Licensor's reasonable opinion, be interfered with by the Electric Supply Line, Liccnsce shall, at its sole exp€nse, within thirty (30) days after receiving written notice from Licensor to such effect, malce such changes in the Electric Supply Line as in the sole discretion of Licensor may be neoessary to avoid interferpnce with the proposd use of Licensor's rail corridor, including without limitation, the relocation of the existing or the constnrction of new a Electric Supply Line. (a) Prior to Licensee conducting any boring work on or about any portion of the Prcmises, Licensee shall explore the proposed location for such work with hand tools to a depth of at least thre€ (3) feet below the surface of the ground to 14. 15. 16. 17. Form 421; Rcv.0.f26O5 Law Departnent Approved ContractNo. l+3001 BFNo. daermine wheth€r pipelines or other structurEs exist below the surface, orovided. however. Orat in licu of the foregoing, thc Licensee slrall have the right to usc suitable detection equipment or other generally accepted industry practice (c.9.. oonsulting with the Underground Services Association) to detsrmine the exist€nce or location of pipelines and other subsurface stnrstues prior to drilling or cxcavating with mechanized equipmenl Upon Licensee's written requesq which shall be made thifiy (30) business days in advance of Licensee's rcquested constnrotion of the Electic Supply Line, Licensor will provide Licensce any information that Licensor's Engineering Departncnt has in its possession concerning the existence and approximate location of Licensor's undcrground utilities and pipclines at or near the vicinity of thc prcposed Electric Supply Line. Prior to conducting any such boring worls, the Licensce will revicw all such materid. Licensor does not warrant the aocurucy of information relating to subsurface conditions and Licenseers operations will bc snbjoot at all times to the I iability provisions herein. O) For all bores grcatcr than 26inch diameter and at a dcpth less than 10.0 fu below bottom of rail, a soil investigation will need to be performed by the Licensoe and rsviewed by Licensor prior to constnrction. This sardy is to determine if granular matcrid is present and to prtl,cnt subsidc,nce during the installation prosess. If the investigation determines in Licensofs rcEsonable opinion that granular materid is present, Licensor may select a new location for Licensee's use, or may require Licensee to furnish for Licensods rwicw and approval, in its sole discrction a remedial plan to deal wittr the granular material. Onoe Licensor has approved any such remedial plan in writing, Licensee shall, at its sole cost and expense, carry out the apprcved plan in accordance with all terms thercof and herpof. Any open hole, boring or well consfiucted on the Prcmises by Licensce shall bc safely covered and securcd at all times whcn Licensee is not working in the actual vicinity thereof. Following completion of that portion of the work, all holes or borings constucted on the Premises by Licensee shall be: (a) filled in to sunnunding ground level with compacted bentonite gout; or (b) otherwise secured or rctir€d in accordance with any applicable Legl Rcquirement. All exoavated materials shall not remain on Licensot's property for more than ten (10) days and shall be properly disposed of by Licensee in accordancc with applicable Lcgal Requirements. Upon termination ofthis License, Licensee shall, at its sole cost and expensc: (a) remove all of its equipment from the Pnemises; O) rcmove the Electric Supply Line at Liccnsor's sole discrction; 18. 19. 6 Form 421; Rcv. 04/261(E 2t. L,aw Department Approved ContractNo. l+3001 BFNo. (c) report and restore any damage to the Premises arising firom, growing out of, or connected with Licensee's use of the Prsmises; (d) remedy any unsafe conditions on the Premises created or aggravated by Licensee; and (e) leave the Premises in the condition wtrich oristod as of the Effective Date of this License. 20. Licensee's on-site supervision shall retain/mainain a fully+xecuted copy of this License at all times while on the Premises. LIABILTTY (a) TO Tm FIILLEST EXTENT PERMITTED BY LAW LICENSEE SEALL RELEASE, rNDElrmilrr, DETEND AND IIOLD EARMLESS LICENSORAND LTCENSOR'S AFFILIATED COMPANIES, PARTNERS, succDssoRs, AssrGNs, LEGAL REPRESIEI\:rATMS, OFFICERS, DTRECTORS, SHAREITOLDERS, EMPLOYEES AND AGENTS (CoLLECTTVELY, "INDEMNTTEES") FO& IIROM AltD AGATNST AIyy AND ALL CLAIIrffi, LHBILITIES, FIIYES, PENALTIES, COSTS, DAMAGES, LOSSES, LTENS, CAUSES Or ACTION, SUITS, DEMAI\IDS, JUDGMENTS ANL EXPENSES (INCLUDING, WITHOUT LIITilITATION,coIrRT cosTs, ATToRNEYS' IEES AND COSTS OF INVESTIGATION, REMOVAL AND REMEDIATION AI{D GoVERNMENTAL OVERSTGTTT COSTS) ENVTRONMENTAL OR oTEERWISE (COLLECIMLY "LTABILIIIES") OF AIrSY NATURE, KIND OR DESCRIPTION OF ANY PERSION OR ENTITY DIRECTLYoR INDIRECTLY ARTSTNG OUT OF, RESI LTntG FROM OR RELATED TO (trr WHOLE OR rN PART): (D TmS LICENSE,INCLUDING, WITHOUTLIIIIITATION, ITS ENVIRONMENTAL PROVISIONS, (ir) ANY RIGIITS OR INTERESTS GRANTED PURSUANT TO Tms LrcENsE, (iiD LICENSEE'S OCCIIPATTON AND USE OF TEE PREMISES, (iv) THE ENVIRONMENTAL CONDffiON AND STATUS OFTIIE PREIIIISES CAUSED BY OR CONTRIBUITD BY LTCENSEE, OR (v) AII{Y ACT OR OIIflSSION OF LICENSEE OR LICENSEE'S oFT'ICDRS|, AGENIS, IITVTTEES, EMPLOYEES, OR Form 421; Rsv. 04120/05 Law Department Approved ContractNo. 14-3001 BFNo. CoNTRACTORS, OR ANYONE DIRECTLY OR IITDIRECTLY EMPLOYED BY AI\Y OF TrmM, OR ANYONE THEY CONTROL OR EXERCISE CONTROL OVER, EYEN IF SUCE LIABILMES ARISE FROM OR ARE ATTRIBUTEI) TO, IN WIIOLE OR IN PART, ANY NEGLIGENCE OF AI\TY INDEMNITEE. THE ONLY LIABILITIES WITH RESPECT TO WHICH LICENSEEIS OBLIGATION TO INDEMNIT"Y TEE INDEMNTTEES DOES NOT APPLY ARE LIABILITIES TO TIIE EXTENT PROXIMATELY CAUSED BY TIIE GROSS NEGLIGENCE OR WILFI'L IVIISCONI'UCT OF AI{ INDEMNITEE. FI RTrrE& TO TIIE TULLEST EXTENT PERIIITTTED BY LAW NOTWTTIISTAIIDING TEE LIMITATION IN SECTION 21(a), LICENSEE SEALL NOW AND FORE\M,R WATVE ANY AND ALL cr,ArMs, REGARDLESS WmTmR BASED ON TrrE STRTCT LIABILITY, NEGLTGENCE OR OTmRWISE, TEAT RATLROAD rS Ar{rfoffilERrfr'roPERAToRil, TARRANGERT, OR'TTRANSPORTER" WITE RESPECT TO TEE ELECTRIC ST'PPLY LINE FOR TIIE PURPOSES OF CERCLA OR OTIIER ENYIRONMENTAL II\WS. LICENSEE WrLL TNDEIIINrI"r, DErEI\ID ANI] EOLD rHE INDEMNITEES IIARMLESS FROM ANY AND ALL SUCE CLAIMS REGARDLESS OX' TIIE NEGLIGENCE OF TIIE INDEMNMEES. LICENSEE FI'RTMR AGREES THAT THE USE OF IEE PREMISES AS COI{TEMPLATED BY IHIS LICENSE SEALL NOT IN ANY WAY ST'B.'ECT LICENSOR TO CLAIIUS THAT LICENSOR IS OTEER TIIAN A COMMON CARRIER FOR PI'RFOSES OF ENVIRONMEIYTAL LAWS AttD EXPRESSLY AGREES TO INITEMNITT, DEX'BND, AND HOLI) TI{T'- INDEMMTEES HARMLESS T]OR AT{Y AND ALL SUCH CLAIMS|.IN NO EVEI{T SEALL LICENSOR BE RESFONSIBLE FOR TEE ETWIROI{MENTAL CONI'MON OF THE PREMISIES. TO TrrE FIILLEST E)ffENT PERIIilITTED By Il\W, LICENSEE FURTIIER AGREES, REGARDLESS OF ANY NEGLIGENCE OR ALLEGEII I\TEGLIGENCE OT AI{Y INDEMMTEE, TO IIYDEMNIFT, AT{D IIOil) EARMLESS THE IITTDEMMITES AGAINST AIYD ASSITME TIIE DETENSE OF AI\TY LIABILITIES ASSERTDD AGAINST OR SIItrTERED BY ANY INDEMNTTEE TINDER OR RBII\TEID TO THE tr'EDERAL EMPLOYERSI' LTABILITY ACT ("FELA") WEENEVER EMPLOYEES OF LTCENSEE OR ANY OF ITS AGENTS,IIwTTEES, OR CONTRACTORS CLAIM OR ALLEGE THAT TIIEY ARE EMPLOYEES OF ANY IIYDEMNTIEE OR OTTIERWISE. TIIIS INIIEMMTY SHALL ALSO EXTEND, ON TIIE SAME BASIS, TO FELA CLAIMS BASED ON ACTUAL OR ALLEGED VIOII\TIONS OF AI\TY T'EDERAL, STATE OR LOCAL LAWS OR REGTILATTONS, TNCLTTDING BUT NOT LnlITEr) TO TIIE SAFETY APPLIAI\ICE ACT, TEE BOILER INSPECTION ACT, (b) (c) Form42l; Rev.0l20O5 [.aw Depar&nent Approved Contract No. 14-3001 BF No. TEE OCCTIPATIONAL MALTH AIYD SAFETY ACT, THE RESOI]RCE coNsERvATroN AND RECOVERY ACT, AI\[D ANY STMTLAR STATE OR TEDERAL STATUTE. (d) Upon written notice from Licensor, Licensec agrces to as$rme the defense of any lawsuit or othcrproceeding brought against any Indemnitee by any entity, relating to any matter covered by this License for which Licensee has an obligation to assume liability for and/or save and hold harmless any Indemnitce. Licensee shall pay all costs incident to such defense, including, but not limited to, attomeys'fees, investigators' fees, litigation and appeal expens€s, settlernent payments, and arnounts paid in satisfaction ofjudgmens. PERSIONAL PROPERTY \trAIVER 22. ALL pERSONAL PROPERTY OF LTCENSEE, TNCLTTDING, BUT NO|I LIMITED TO, TfiTTTRES, EQIIIPMENT, OR RELATED MATERIALS I]P'ONTm PREMTSIES WILL BE AT Tm RISK OF LICENSEE ONLY, AllD NO INDEMMTEE WILL BE LIABLE FOR ANY DAIUAGE THERETO OR TIIETT TmREOF, WrmrrIER OR NOT DIiE IN WITOLE OR IN PART TO TIIE IiTEGLIGENCE OT AIYY INDEMNITEE. INSI'RANCE 23. Liccnsee shall, at its sole cost and expense, procurc and maintain during the life of this Agreernent the following insurance coverage: A. Commercial Gencral Liability Insurance. This insurance shall contain broad form oontactual liability with a oombined single limit of a minimum of $2p00,0fi) each occurrence and an aggrcgde limit of at least $ 4,000,000. Coverags must be purchased on a post 1998 ISO occurence or equivalent and inslude coverage for, but not limircd to, the following: a Bodily Iqiury and Property Damage o Personal lqiury and Advertising Injury o Fire legal liability t Products and completed operations This policy shall also contain the following endorsemenb, which shall be indicated on the certifi cate of insuranoe: o It is agreed that any workers' compensation exclusion does not apply to Licensor's payments related to the Federal Bnployers Liability Ag[ or a Licensor Wage Continuation Program or similar programs and any paffiens made are deemed not to be either payments made or obligations assumed under any Workers Compensation, disability benefits, or unemployment compensation law or similar law. o The definition of insured contract shall be amended to rEmove any orclusion or other limitation for any work being done within 50 fu of railroad property. Form 421; Rsv. 0.1/26Ds Law Department Approved ContnactNo. 14-3001 BF No. o Any exclusions rclated to the explosion, collapse and undcrground hazards shall bc removed. No other endorsements limiting coverage may be included on the policy. B. Business Automobile Insurance. This insuranoe shall contain a combined single limit of at least $1,000,000 per occurenoe, and include cov€rage for, but not limitcd to thc following: o Bodily injury and property damage o Any and all vehicles owned, used or hired C. Workers Compensation and Ernployers Liability Insurance. This insurance shall include coverage for, but not limited to: t Licensee's statutory liability under the wor*er's compensation laws of the state$) in which the work is to be performed. If optional undcr State law, the insurance must cover all cmployees anyway. a Employers' Liability (Part B) with limits of at least $500,000 each accident $500,000 by disease poltcy limit $500,000 by disease each employee. D. Railroad Protective Liability Insurance. This insurance shall nmre only the Licensor as the Insured with coverage of at lea* $2,000,000 per occurrence and $6,000,000 in the aggrcgate. The coverage obtained under this policy shall only be effestive during the initial installation and/or construstion of the Electric Supply Line. TIIE CONSTRUCTION OF THE ELECTRIC ST PPLY LINE SHALL BE COMPLETED WTTIIIN ONE (1) I/EAR OF THE ErrECTr\m DATE. If frrther maintenance of the Elecuic Supply Line is needed at a later date, an additional Raikoad Protective Liability Insumnce Policy shall be required. The policy shall be issued on a standard ISO form CG 00 35 l0 93 and include the following: a Endorsed to include the Pollution E:rclusion Amendment (ISO form CG 2E 3l l0 e3) o Endorsed to include the Limited Seepage and Pollution Endorsement. t Endorsed to include Evacuation Expense Coverage Endorsement. a No other endorsements restricting coverage may be added. o The original policy must be providcd to the Licensor prior to performing any work or serviccs under this Agreement ln lieu of providing a Raihoad Protective Liability Policy, Liccnsee may participate in Licensor's Blanket Railroad Protective Liability Insumnce Policy available to Lic€nsee or its contractor. The limits of coverage are the same as above. The cost is $_, o I elect to participate in Licensor's Blanket Policy; tr I elect not to participate in Licensor's Blanket Policy. Other Requirements: l0 Form 421; Rcv. Ol/28/05 Law Department Approved ContractNo. 14-3001 BF No. Where allowable by law, all policies (applyrng to coverage listed above) shall contain no exclusion for punitive damages and certificatcs of insurancc shall reflcct that no exclusion orists. Licensee agrces to waive its right of recovery against Liccnsor for all olaims and suits against Liccnsor. In addition, its insurers, thrcugh policy eirdorsernent, waive dteir right of subrogation against Licensor for all claims and suits. The certificate of insurance must reflect waivcr of subrogation c,ndorsernent. Liccnscc furthcr waives its right of recovery, and its insurers also waive their right of subrogation against Licensor for loss of its owned or leased property or propcrty under its care, custody or control. Licensee's insurance policies through policy endorsement must include wording which states that the policy shall be primary and non-contibuting with rcspect to any insurance oanied by Licensor. The certificate of insurance must rcflect that thc abovc wording is included in evidcnced policies. All policy(ies) requircd above (excluding Workers Compensation and if applicable, Railroad Protective) shall include a severability of interest endorsement and shall name Licensor and hon Horse Development LLC as an additional insured with respect to worft ,performed under this agreement. Severability of interest and naming Lioensor and Iron Horse Dwelopment LLC as additional insureds shall be indicated on the oertificate of insurnce. Licensee is not allowed to self-insurt without the prior writtrn conscnt of Licensor. If granted by Lioensor, any deductiblg self-insured rucntion or othcr financial responsibility for claims shall be covered directly by Licensee in lieu of insurance. Any and all Liccnsor liabilities that would othenuisc, in accordance with the provisions of this Agreement be oovered by Licensee's insurance will be covered as if Licensee elec"ted not to include a deductible self-insured retention5 or other financial responsibility for claims. Prior to commencing the Wodq Licensee shall furnish to Licensor an acceptable certificate(s) of insurance including an original signature of the authorized reprcsentative evidcnoing the rcquired oov€f,age, cndorsements, and amendments and referencing the contract audit/folder number if available. The policy(ies) shall contain a prcvision that obligates the insurance company(ies) issuing such policy(ies) to noti$ Licensor in uniting at least 30 days prior to any cancellation, non-renewal, substinrtion or material alteration. This cancellation provision shall b€ indicated on the certificate of insurance. Upon request from Licensor, a certified duplicate original of any roquired policy strall be furnished. Any insurance policy shall be wrinen by a rcputable insurance company acceprtable to Licensor or with a cunent Best's Guide Rating of A- and Class VII or bctter, and authorized to do business in the state(s) in which the service is to be provided. Licensee WARRANTS that this Lioense has becn thoroughly reviewed by Licensee's insurance agen(s/broke(s), who have been instructed by Licensee to procurc the ll Forn 421; Rcv. 04126O5 Law Departnent Approved Contract No. 14-3001 BFNo. insurance coverage required by this Agreement. Allocated [oss Expense shall be in addition to all policy limits for coverages referpnced above. Not more @uently than once every five yea$r, Licensor may r€as,onably modifr the requircd insurance coverage to rcflect then-cuncnt risk management practiccs in the railroad industry and underwriting practices in the insuance industry. If any portion of the opcration is to be subconfacted by Licensec, Licensee shall require ttut the subcontractor shall provide and maintain insurance coverages as set forth hercin, naming Licensor as an additional insure4 and shall requirc that the subcontractor shall rrlease, defend and indemni$ Licensor to the same eldcnt and under thc same tcrms and conditions as Licensee is required to release, defend and indemnifr Licensor herein. Failure to provide evidence as required by this section shall entitle, but not requirc, Licensor to terminate this License immediately. Acceptanoe of a certificate that does not comply with this section shall not operate as a waiver of Liccnsee's obligations herpunder. The fact that insurancc (including without limiution, self-insurance) is obtaind by Lioensee shall not be deemed to release or diminish the liability of Licensee including, without limitation, liability under the indemnity provisions of this License. Damages rocoverable by Licensor shall not bc limited by the arnount of the rcquircd insurance coverage. For purposes of this section, Liccnsor shall mean *BurlingSon Nordrern Santa Fe Corporation", "BNSF Railway Companf and the subsidiaries, suocessors, assigns and affiliates of each. ENYIRONMENTAL Licensee shall strictly comply with all Ikleral, statc and local cnvironmental laws and regulations in its use of the Premiscs, including, but not limited to, the Resource Conservation and Recovery Act, as amcnded (RCRA), the Clean Water Act the Oil Pollution Acl the Hazardous Materials Transportation Ac( CERCLA (collectively refened to as the "Environmental laws'). Licensee shall not maintain a tneatrnent, storage, transfer or disposal facility, or undergound storage tanh as defined by Environmental Laws on the Premiscs. Liccnsee shall not rplease or suffer the releasc of oil or hazardous substances, as defined by Environmental Laws on or about the Premises. Licensee shall give Licensor immediate notice to Licensoy's Resource Operations Center at (800) 832-5452 ofany release ofhazardous substances on or from the Prcmises, violation of Environmental Laws, or inspection or inquiry by governmental authorities charged with enforcing Environmental Laws with respect to Licensee's use of ttrc Premises. Licensee shall use the best efforts to promptly respond to any release on or from the Premises. Licensee also shall give (a)24. (b) t2 Form 421; Rcv.0426O5 Law Departnent Approved ContractNo. l+3001 BFNo. Licensor immediate notice of all measurps undertaken on behalf of Liccnsee to investigate, remediate, respond to or otherwise cure such rclease or violation. (c) In the event that Lice,nsor has notice from Licensee or othenvise of a release or violation of Environmental Laws arising in any way with rcspcct to the Electic supply Line which occunpd or may occur during the tcrm of this Liccnse, Licensor may require Licensee, at Licensee's sole risk and expcnse, to take timely measures to investigate, rcmediate, respond to or othenrise ourc such releasc or violation affecting the Premises or Licensot's right-of-way. (d) Licensee shall promply report to Licensor in writing any conditions or activities upon the Premises known to Licensee which create a risk of harm to pertsons, property or the environment and shall take whatever action is necessary to prcvent injury to persons or property arising out of such conditions or aotivities; provided, however, that Licensee's reporting to Licensor shall not rplieve Licensee of any obligation whatsoever imposed on it by this License. Licensee shall promptly rcspond to Licensods request for information regarding said conditions or activities. ALTERATIONS 25. Licenscc may not make any alterations to the Prcmises or pennanently affx anything to the Premises or any buildings or other structur€s adjaoent to the Prcmises without Licensor's prior written consent. NO WARRAIYTIES 26. LICENSORIS DUTIES AI{D WARRANTIES ARE LIMITED TO TEOSE EXPRESSLY STATED IN TIIIS LICENSE AND SHALL NOT INCLUDE ANY IMPLIED I'UTTES OR IMPLIED WARRANTIES, NOW OR IN THE FIITIIRE. NO REPRESENTATIONS OR WARRAI{TIES IIA\M BEEN MADE BY LICENSOR OTIIER THAN THOSE CONTAINEID IN TEIS LICENSE. LICENSEE TTEREBY WAMS AI{Y AND ALL WARRANTIES, EXPRESS OR rMpLrED, WITH RESPECT TO TEE PREIIIISES WHrCH MAy E)CST By oPERATION OF LAW OR IN EQIIITY, INCLUDING, WTTHOUT LIMITATION, AIYY WARRANTY OF MERCHANTABILITY, HABITABILITY OR TTINESS FOR A PARTICTILAR PT]RPOSE. OIIIET ENJOYMENT LICENSOR IX)ES NOT WARRANT ITS TITLE TO TIIE PROPERTY NOR IINDERTAIG TO DEFEI\ID LICENSEE IN TEE PEACEABLE FOSSESSION OR USE TI[F',REOF. NO COVENAIYT OF QUIET ENJOYMENT IS MAI'E. 27. t3 Form 421; Rev. 04A6O5 Law Departnent Approved ContactNo. 14-3001 BFNo. IDEFAT'LT 28. If default shall be made in any of the covenants or agreernents of Licensce contained in this documen! or in case of any assignment or transfer of this License by openation of law, Licensor may, at its option, tcrminate this Liccnse by scrrring five (5) days'noticc in uriting upon Licensee. Any waivor by Licensor of any default or dcfaults shall not constiturc a waiver of the right to terminate this Lioense for any subsequent default or defaults, nor shall any such waivcr in any way affect Liccnsorrs ability to enforce any Section of this Licensc. The reinedy set forttr in this Scction 28 shall be in addition to, and not in limitation oi any other rpmedies that Licensor may have at law or in equrty. LIENS AIYD CHARGES 29. Licensee shall promptly pay and dischargo any and all liens arising out of any constructio& alterations or rcpairs done, suffercd or pcrmiued to be done by Liccnsec on Prpmises. Licensor is hereby authorized to post any notices or bke any other action upon or with rcspect to Prsmises that is or may bc permittcd by law to pr€veNt thc auachment of any such liens to Premises; providd, however, that failure of Licensor to takc any such action shall not rplieve Licensec of any obligation or liability under this Soction 29 or any other Section of this Liccnsc. Licensec shall pay whcn due any taxes, asscssmcnts or other charges (collectively, 'Tores) levied or assessed upon the Improvernents by any gCIvernmental or quasi-governmental body or any Taxes levied or assesscd agEinst Licensor or the hemiscs that are attibutable to ttre Improvcmcnts. TERMINATION This License may be terminated by Licensor, at any time, by serving thirty (30) days' wrinen notice of rcrmination upon Licensee. This Liccnse may bc terminatcd by Licensce upon execution of Licensods Muhral Termination Lcttcr Agrcemcnt thcn in effect Upon expination of the time spccified in such notice, this License and all rights of Licensee shall absolutely ceasc. If Licensce fails to sunender to Licensor the Premises, upotr any termin*ion of this License, all liabilities and obligations of Licenscc henrunder shall continue in effect until the Prcmises are surrender€d. Tsmination shall not rplease Licensee from any liability or obligation, whether of indemnity or otherwise, resulting from any events happening prior to the date of termination. ASSIGNMENT 32. Neither Licensee, nor the heirs, legal reprtsentatives, sueoessors, or assigns of Licensee, nor any subsequent assignee, shall assign or transfer this Lioense or any interpst herein, without the prior wriren consent and approval of Licensor, which may be withheld in Licensorrs sole discrction. 30. 31. t4 Form42l;Rcv. 042nod5 Law Department Approved Contract No. l,l-3001 BF No. NOTICES 33. Any notice rcquired or permittcd to be given herermder by one party to the other shall be in writing and the same shall be grven and shall be deemred to have been served and given if (i) placed in the United States mail, certified, return receipt requested, or (ii) deposited into the custody of a nationally recognized overnight dclivcry servicc, addr€ssed to the party to be notified at the address for such party specified bclow, or to such other address as the party to be notified may designate by giving thc other party no less than tttirty (30) days'advance writtem notice of such changc in address, If to Licensor: BNSF Railway Company 2500 l.ou Menk Dr. -AOB-3 Fort Worth, TX 76131 Atn:- Land Revenue Management with a copy to:kon Horse Developmeng LLC 111 University Parkway, Suite 200 Yakima, WA 98901 Ifto Licensee: PacifiCorp Right of Way Departnent 825 NE Multromah Sfic€t, Ste 1700 Portlan4 OR 97232 EIIBYryAL 34, Neither termination nor expiration will release eithcr party from any liability or obligation under this Licensg whether of indemnity or othcnvise, resulting from any acts, omissions or events happening prior to the date of termination or orpiration, or, if later, the darc when the Elecfiic Supply Line and improvomcnts are rcrnoved and the Premises are restored to its condition as of the Effeotive Da,te. RECORDATION 35. It is understood and agreed that this License shall not be placed on public rccord. APPLICABLE LAW 36. All questions concerning the interpretation or application of provisions of this Liceirse shall be decided according to the substantive laws of the state of Tenas without regard to confl icts of law provisions. SEVERABILITY 37. To the morimum extent possible, each provision of this Liccnsc shall bc interpreted in such manner as to be effective and valid under applicable law, but if any provision ofthis t5 Form 421; Rev. 04f28/Gi Law Departnent Approvcd ContractNo. 14-3001 BFNo. License shall be prohibited by, or held to be invalid under, applicable law, such provision shall be ineffective solely to the extent of such prohibition or invalidity, and this shall not invalidate the remaindcr of such provision or any other provision of this Licerse. INTEGRATION 38. This License is the full and complete agreement betrreen Licensor and Liccnsee with rEspect to all matters relating to Licensee's use of the Premises, and supersedes any and all other agrecmeirts betrnrccn the parties hereto relating to Licensce's use of the Prrmises. Howwer, nothing herein is intended to tcrminate any surviving obligation of Licensee or Licensee's obligation to defend and hold Licensor harmless in any prior writrcn egreement between the parties. IIIISCELLANEOUS 39. In the event that Licensce consists of trro or morE parties, all the covenants and 4greemenb of Licensec herpin conained shall be the joint and several covenants and agreements of such parties. 40. The waiver by Licensor of the breach of any provision herein by Licensee shall in no way impair the right of Liccnsor to enforce that provision for any subsequcnt breach thercof. hon Horse Developnnent LLC is acting as r€pr€sentative for BNSF Railway Company. IN WTIIIIESS WffiREOF, 0ris License has been duly executed, in duplicate, by thc parties hereto as ofthe day and year first above uninen. BNSF RAILWAY COMPANY By: PACIFICORP By: Title: t6 Form 421; Rcv. gf26l05 EXHIBIT IIAII AITACHEDTOCOT{TRACTBETV\iEEN I BNSF RATLWAY COTPANY flAND -N- PACIFICORP il 9Q{LF, l l!!.= 200 FT. sECiloN: 6ionrriwesi - ' orv. TowNSHtp: i2NYAKTMAVALLEY SUBDIV. L.S. -0Q49 oaN^E. .", ,ATE*,itot2ol4 -evssrui L'vlrEss ,tlitsi:fi;# DEbd 12{3.5 IS HEREINTO RELEASE INTEREST UNDER PURCTIASE AND SALE AGREEMENT $EC. t2T8l{. R2SETO 8EC. aTl.til, RlG, JULY 20, I 9t, BElIl,EEll Vf,Sll[tBl0il GEI{TRAL R/WUNDERAGREEITIENT NO BN 858:}, S-I1160 \A'ASHINGTON CENTRAL RAI!.ROAD CO. INC. DATE 07.2$1986 KENNEWCKAT MP 3.058 TO KIONA. MP AT MP 28200 EXCEPTIONSAS NOTED. SUBJECTTO FIBER OPTIC RIGHTS. DESCRIPTION OF WRES OVER TRACK WRES LOCATEDAS SHOV\,N BOI..D DISTANCEAEOVE CI.EARS RAILTAAYTYPE Ntfi'BER VOLTAGE TOP OF RAIL COi{PANYS YVIRES EIECTRIC 4 230 KV 60..t'MlN. AT UNION GAP COUNTY OF YAKIMA STATE OF WA JNc UUUXUINAI E UTl,I EM. NI 8lq sG o.g IHAUKING N(,. REVISION 1 DRAWNG NO.60308 B'V.gFFm lron Horse Development, LLC 't11 University Parkway, Suite 200 APPUCANON FOR PIPELINE oTIflIREUNE. CROSSING AND/OR LONGIruDNAL TA)( rD -OR- SS NO. U.BI. NUMBER: Yaklma, WA 98901 ATTN: Railroad Propefty Management We submit for lour approval the follorving specifications for a line we propose to build across and/or along BNSF RAILYYAY COilPANY right-of-way, as shown on enclosed drawing. Legal name of company or municipalrty who will own the line; PaciftCorp, an Oregon Corporation_ State in which incorporated:_Oregon_ (lf not incorporated,please attach name of owners or partners) Name of contact for ornership entity: _Kayla Caro! E*nai! address: _ kay'a.carol@pacificorp.com Mailing address PacifiCorp, Right of Way Departmenl 825 NE Multnomah Sbeet, Ste 170O, Portland, OR 97232 Telephone e41€8&71 38 or 503€13€800 Fax call telephone first to let me knor lou fax 503€1$6596 ls this proJect ARRA funded? Yes € No X ls applicant a comdemning authoffi Yes X No € ls applicant a Railroad Shlpper? Yes € No X lf yes, BSNF Marketing Rep. name: Phone # Was the servioe requested by BNSF? Yes € No X ls this installation in conjunction with a tack or track expansion project? Yes € No X lf yres, BNSF contact name;Phone # ls this installation associated with a puHic road crossing/widening or a grade separatlon project? Yes € NoX lf yes, pleaseprovide details and plans for said crossingAruidening or grade separation project with your application. Type of Encroachment Crossing X Longitudinal € Both € Name of nearest town on Railroad_Union Gap _ State _Oregon_ County _Yakima_ Name of nearest public roadway crossing Railroad _Valley Mal! Blvd Location of crossing _NE_ 1/4 Section _6_Twsp _12N_ Range _19E_ RR MilePost + Within limits of public road or sbeet? Yes € No X lf yas, distance from center line of road or street ft. Width of public road or street PIPELINE: (Note: brwire llne see pg.2) Contents to be handled through plpe llne: ft. Length of pipe of RR property much be encased fullwidth of allthickness (minimum wall thickness of casing pipe under 14 in. - 0.188 in E€0 Mechinical€ Welded !, Distance from base of rail to top of pipe contents, steam, water or non-flammable - minimum 5 l|under main back) Minimum ground cover on RR property protection casing Tlpe of insulators or supports Numberofvenb(flammablesubetancesrequire2vents)-Size-Heightabowgound Metrod of crossing: Jacking €Trench€ Dry Bore Only € (tf henched - Rallroad fumlsh flagman at appllcanfs expense.) (lf bored or jacked - Jacking Pit locaton mlnlmum 30 ft" fiom centerline of nearost back.) Plt must not ba open more than 48 hours. Also, it must be probcted when not in use. Does pipellne support oil orgas well? Yes € No € lfyes, advise distanca thewell isfiom Ralhrayproperty ft. Name ofwell WRE LII{E: Kindof encroachment Electric X Communication € lf other,describe: No.ofwires/cables 4 Typeof wires/cable1!!g4qi4!!0/$lee|-vdts2@.QggPhase 3 Cycles 60Hz No. of conduits n/a No. of occupied conduits No. of vacant conduits Length of encroachment 317.3',Adjacentspans ft._ft.Appurtenanceson RRPropefi none Wire dearanos over or under top of rall 60.4'-OVER ft. lf under track, size & kind of conduit Wire clearance over Ry. Co.wire lines N/A ft. over or fi. under POLES Kind: steel Size :lQ3gn!.l!oe HeightlO86l(AGLlClass: H3 eouivalent Set-ln: Earth X Rock € Number of poles of RR Propert)r none Distance of poles from tadc 125.4 SEE ATIACHED DRAWING Gt,YI'YIRES Overhead 0 Kind CROSSARTUIS Down 0 Size Material da Size _X x FROIIIT ELEVATIOT{ INSULATORS SEE ATTACHED DRAWING TvpeJlnc-esil BRACKETS -a 84{6' Twe CONDUGTORS Material: Aluminum / steel Kind: ACSR Slre: 1272 kcmil SIDE ELEVATION L!ilE G}T,ARACTERISTICS Voltage: 230kV Phase: 3 Cycle: JBOHZ I agree that I have read the instructions for the installation of wire ines as detailed in the UfrlW Accomodation Policy. Attached to thls sheet is a location plan and a detailed sketch. Sketcfr should show tiedown measurement to centerline of nearest road crossing, bridge or other nailroad sbucfure. Please authorize us to procees with this installaUon or advise what changes are necessary to meet BNSF's specifications. oate: { .c\r. Ots - &o(\Signed: Print Name: Company: Title: Phone #: PaciftCorp Senior PropertyAgent 503€13-6800 or 541-38&71 38