The URL can be used to link to this page

Home My WebLink About86- Sohio Petroleum Co. Agreement . " , .,. . , , 1 . , , . AGREEMENT Agreement made this 13 day of March , 1986, between the City of Bozeman, Montana, a municipal corporation C'City" ) and Sohio Petroleum Company, an Ohio corporation of 330 South Center, Casper, Wyoming ("Sohio"). R E C I TAL S: ---~~--- 1. Sohio desires to ensure adequate water for domestic pu rposes at its Moats #1 exploratory oil and gas well drilling site in Gallatin County, by contracting with City to purchase potable water as a reserve source of domestic water. 2. Both parties desire to ensure that human waste generated on the Moats #1 drilling site shall be disposed of in a proper and sanitary manner. 3. The City is willing to sell to Sohio water from its potable water supply system and to allow use by Sohio of its sanitary sewer system on the terms provided below. 4. The City desires to develop and improve a water well located in the basement of the police department building so as to allow pumping of water from the well into Bozeman Creek in order to prevent flooding during winter months. THEREFORE, the parties agree as follows: A. On or before the date of "spudding" the Moats #1 exploratory oil and gas well (or as soon thereafter as possible upon execution of this Agreement by both parties herein described), Sohio agrees to deposit with the City the sum of Six Thousand Dollars ($6,000.00) to be held in a separate interest bearing account. Such sum shall be used by the City to improve and develop the water well located in the police department, together with any necessary pipes, lines and connections, so as to enable water from the well to be pumped into Bozeman Cree k . Development of the well shall be the sole responsibility of the City. The development of the well shall be completed within 120 days following issuance of a permit to the City from the State of Montana approving the proposed water well development. In the event State approval has not been received in time to allow the work to be completed before the onset of winter, the work shall begin as soon as practical following the spring ground thaw with work to be completed in 120 days. The City shall provide Sohio sufficient documentation for all funds expended on this project to satisfactorily account for such expenditures within thirty (30) calendar days following project completion as described above. ~ . # '.,:~ . . ~ .. ~ . ,- In the event development of the well costs less than $6,000.00, the remaining balance in the accou nt, together with accrued interest, shall be retu rned to Sohio. In the event the cost of such development exceeds $6,000.00, Sohio shall not be responsible for any portion of the additional cost. B. The City ag rees to sell to Sohio potable water from its water supply system for use by Sohio as a backup source of domestic water for use by drilling, supervisory, safety and other authorized personnel on the Moats #1 drilling site. It is understood by both parties that City water shall not be the primary source of domestic water for the site, and that City water shall only be used in the event the primary source is inadequate to supply the domestic needs of the drilling site for any reason. The primary source referred to herein is deemed to be the water well drilled by Sohio on the Moats #1-3 location for purposes of supplying potable and drill water for said well. Domestic use shall be limited to drin king and other normal household uses, and shall not include use of water for drilling purposes. Any such domestic water purchased by Sohio under this agreement shall not exceed 60,000 gallons per month. Potable water shall be hauled to the drilling site in trucks provided by Sohio at its expense. The trucks shall be filled at a location designated by the City. Sohio agrees to pay for such water at the rate of thirteen cents (13q;) per 100 gallons. This rate is subject to change by the City in the event a new water rate goes into effect. This agreement may not be terminated by the city for a period of sixty (60) days after the date hereof. If, after said sixty (60) day period, the City Commission determines that there is an existing serious water shortage which may impair the ability of the City to provide water to its residents or other permanent water users, the City shall have the right to terminate this agreement. In the event of such termination, the City shall refund a portion of the sum deposited by Sohio as follows: Termination between 61-90 days $3,000.00 Termination between 91-120 days $2,000.00 Termination between 121-150 days $1,000.00 Any sum refunded pursuant to such termination shall be offset from any amount to be returned pursuant to Paragraph "A" of this agreement. C. The City agrees to allow Sohio to use the municipal sanitary sewer system for deposit of human waste generated on the Moats #1 well site. The sewage will be hauled by trucks furnished by Sohio at its expense and will be placed into the City sewer system in a manner and at a location designated by the City. Sohio ag rees to pay the following fee: Six cents (6q;) per 100 2 ~ ~ ." -;."" .. ...~.. . " gallons, plus $2.90 for each discharge. This rate is subject to change in the event a new rate schedule goes into effect. D. This agreement shall remain In effect during the drilling and completion of the Moats #1 exploratory oil and gas well. Upon completion or abandonment of said well, the obligation of the City to furnish water and sewer services pursuant to Paragraphs Band C shall terminate. E. Each party agrees to indemnify and hold harmless the other party, its agents and employees, from and against all claims, damages, losses and expenses arising from the performance of this agreement unless such claims, damages, losses and expenses are caused by willful misconduct or negligence on the part of either party. F. This agreement shall be construed in accordance with the laws of the State of Montana. G. This agreement may not be assigned without prior written consent of the other party. CITY OF BOZEMAN SOHIO PETROLEUM COMPANY By~2-.\J~( BY: ~~. 9xu A TT ES T : ) , DEBRA J. WIL;~~')~l~':~:"N~'~;;;P':;hll~c~ { County of SNte of V 'j l' ' I ~ ,.., 1 ,,,-7 ' ":citrO::1<' Wyo<'"h' \'~ B Y . /? az.;-' ,/, ,rf./a.J ,~ ;) .,~ . h" . / / -,/[<A'.L-J/. / / t..-V?//ta/H if M r. " , ' , . '\ . C I I, k f C"t C .. ,\ "Y ~o!llmI8slon .t:xt:>lres Mat. 12, 19SB II Actlng er 0 I Y ommlsslon '''. ' ":".,,-;:o"'"";',;>.-:;;:l\ ~7 uJ~ ~ - '<,,,"' !l"'"l1'\''l tJ!:'(r':!rlr::", "'~"IJ'f;'f'"T' .;~ r'\,", 'I" ~ "'.' I " "'!Q i\.':+'II;~'H,~')':,,'~"'1"': ::> )".;'}, :::" ,'",~,(i~,u~ 7, ;'4~ "'4 0 "'_.~f~~ Lf- c~ '" ", :'~ ~"1"t"Io', 'Y"',~\~ Ity 1'~\lLV. d~J 3 . WlAR 1 119M) . . -. ~OHI~ SOHIO PETROLEUM COMPANY P. O. BOX 30 EXPLORATION AND PRODUCTION CASPER, WYOMING 82602 March 13, 1986 1. D. 1547S City of Bozeman ci ty Hall Bozeman, MT 59715 Attention: Mr. J. E. Wysocki, City Manager Dear Jim: Enclosed please find an executed copy of the subject Agreement along with a draft in the amount of six-thousand dollars ($6,000.00) payable to the City as required under Article 'A' of the Agreement. We are certainly appreciative of your efforts in working out an Agreement which is satisfactory to the City and sohio and look forward to a continued good working relationship between Sohio and the City of Bozeman. Yours very truly, ~~~ B. G. Jones District Manager BGJ:pms cc: Robert J. Rice w/Attachment Moats Well File w/attachment B. G. Jones w/attachment 8C',t, <./ -. 3-- J ~ f(~ -F $~