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SAMPLE EASEMENT FOR PIPELINES

(AN INDEMNIFICATION AGREEMENT IS ATTACHED)

Right of Way Application No. XXXXX

Affecting a 50-foot strip through a

portion of NE1/4 NE1/4

Sec. 36, Twp. 7N, Rge. 17E

Your County, Montana

EASEMENT NO. D-9889

RIGHT OF WAY DEED

IN THE NAME AND BY THE AUTHORITY OF THE STATE OF MONTANA

TO ALL TO WHOM THESE PRESENTS SHALL COME:

Know ye that the State of Montana (hereinafter referred to as "Grantor"), in consideration of the sum of Two Thousand one Hundred Eighteen and 38/100 Dollars ($2,118.38) now paid, grants to YOUR PIPELINE COMPANY (hereinafter referred to as "Grantee") a right of way for a buried 24" crude oil pipeline upon and across State lands, as follows:

A 50-foot strip through a portion of NE1/4 NW1/4, Section 36, Township 7 North, Range 17 East, Principal Meridian Montana, Wheatland County, Montana, more particularly described as follows:

A tract or strip of land 50 feet wide, 25 feet on each side of a centerline described as follows:

Beginning at a point which bears S89E59'22"W a distance of 438.57 feet from a railroad spike found for the Northeast corner of said Section 36, Township 7 North, Range 17 East, said point being the True Point of Beginning; thence, First Course, S10E28'44"E a distance of 440.13 feet; thence, Second Course, S10E28'04"E a distance of 509.65 feet; thence, Third Course, S18E23'59"E a distance of 40.04 feet; thence, Fourth Course, S30E42'05"E a distance of 39.91 feet; thence, Fifth Course, S43E14'56"E a distance of 40.17 feet; thence, Sixth Course, S55E37'59"E a distance of 249.09 feet to the Point of Terminus, said point being on the East line of said Section 36, Township 7 North, Range 17 East and bears S00E00'38"E a distance of 1176.21 feet from a railroad spike found for the Northeast corner of said Section 36, Township 7 North, Range 17 East.

The above-described right of way contains a total of 1.51 acres, more or less.

The grant of this easement is subject to the following conditions:

The Grantee shall comply with the Montana Antiquities Act, Title 22, Chapter 3, MCA. In particular, Sections 22-3-435 and 22-3-8.

It is also agreed that the Grantee shall comply with such rules or regulations as may be hereafter imposed by the State Board of Land commissioners to insure that the environment will be adequately protected and the public health and safety not be endangered.

The Grantee shall be responsible for controlling any noxious weeds introduced by Grantee's activity on State-owned land. The Grantee's methods of control must be reviewed by the Grantor's Area Field Office that has jurisdiction for that locale. Additionally, the Grantee shall be responsible for monitoring and spraying the easement area on all nonagricultural tracts for a minimum of two (2) growing seasons after installation of the pipeline.

The Grantee shall comply with the Montana County Noxious Weed Management Act, Section 7-22-2101 MCA et. seq., as follows:

The Grantee shall notify the local weed board that is responsible for that geographical area that the project is located in. If the Grantee disturbs vegetation for any reason, Grantee shall be required to revegetate the disturbed area. The Grantee shall submit to the local weed board a written plan specifying the methods to be used to accomplish revegetation. The plan must describe the time and method of seeding;

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fertilization, recommended plant species, use of weed-free seed, and the weed management procedures to be used. This plan is subject to approval by the local weed board, and therefore must be signed by the chairman of the board.

The Grantee herein specifically agrees that the said 24" crude oil pipeline shall be buried below plow depth so as not to interfere with the use and cultivation of the land. It is also understood and agreed that the State and its lessees and purchasers shall have the right to occupy, use and fully enjoy the surface of the right of way hereby granted, to seed, cultivate and harvest crops thereon; and that the said Grantee and its successors and assigns shall pay any damages which may result to the crops, fences and other property or interests of the lessees and purchasers from the State by reason of the laying, maintaining, operating or removing of the said 24" crude oil pipeline, and that the amount of such damages if not mutually agreed upon, shall be ascertained and determined by three disinterested persons, one of whom shall be appointed by the lessee or purchaser of the land, his heirs or assigns, one by the Grantee herein, its successors or assigns, and the third by the two so appointed. The award of such three persons shall be final and conclusive on both parties; and that the State and its lessees and/or purchasers will not be liable for any damages to the above mentioned 24" crude oil pipeline resulting from the occupancy, use and enjoyment of the surface of the right of way hereby granted.

It is further agreed by the Grantee that Grantee shall backfill, grade, and revegetate all disturbed areas to the satisfaction of the State. All reclamation, including but not limited to seed mixes, weed and erosion control measures, monitoring and reseeding, shall be in accordance with the Environmental Mitigation Reclamation Plans on file with the Grantor. If seeding does not germinate to the satisfaction of the Department, the Grantee may be required to reseed in those areas open to erosion and weeds. Upon termination of this easement, Grantee shall reclaim the entire area in accordance with this paragraph.

Provided, further, that permission must be obtained in writing, from the Director, Department of Natural Resources and Conservation, prior to the construction of any improvements on the right of way herein granted which is 50 feet wide, 25 feet on each side of the centerline. Other than routine maintenance, Grantee is prohibited from making any alterations, modifications or other changes to the line without the express written approval of the Grantor.

Further, the Grantee shall have secured all permits and approvals as may be required by law before beginning any activity within or below any stream or water course. These permits include, but are not limited to, any permit issued by the Army Corps of Engineers, the State of Montana Department of Environmental Quality, the County Flood Plain Manager, the local County Soil Conservation District and/or the Montana Department of Fish, Wildlife and Parks.

All terms, conditions, project specifications and time-frames contained in all of the required permits, authorizations and construction specification plans become a part of the terms and conditions of this easement.

Provided, however, that the right of way granted herein is not exclusive and Grantee shall not interfere with the Grantor and its successors, assigns, lessees or other parties authorized to use State lands, in their right, at all times to go upon, cross and recross the land covered by said right of way and any road thereon, at any point, for any and all purposes in a manner that will not unreasonably interfere with the rights granted to the Grantee.

Provided, further, that this right of way deed is granted under the express condition that the Grantee's exercise of the rights herein granted shall not interfere with the Grantor's use of the adjacent land.

Provided, further, that the right of way deed granted herein shall be assignable by Grantee only with the written approval of the Director, Department of Natural Resources and conservation.

Provided further that the Grantee must comply with the provisions of that certain Indemnification Agreement dated September, 1996, executed by and between the Grantor and Grantee.

Provided, that Grantor may terminate this right of way for a material breach of any of the conditions or provisions of this deed. Before

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termination, the Board shall give Grantee written notice of intent to terminate and a reasonable period to cure the breach.

It is further provided that whenever said lands herein granted as a right of way shall cease to be used for such purpose, the right of way shall terminate upon notice to that effect being given to the said grantee named herein.

IN TESTIMONY WHEREOF, the State of Montana has caused these presents to be executed by the Governor, and to be attested by the Secretary of State, and countersigned by the Director, Department of Natural Resources and Conservation, and the Great Seal of the State, and the Seal of the State Board of Land Commissioners to be hereunto affixed this 13th day of September, A.D. 1996.

Marc Racicot

Governor of the State of Montana

ATTEST:

Mike Cooney

Secretary of State

Countersigned by:

Arthur R. Clinch

Director, Department of Natural

Resources and Conservation

INDEMNIFICATION AGREEMENT

YOUR PIPELINE COMPANY, a Montana partnership, Your address, (hereinafter referred to as "the Pipeline") hereby agrees to indemnify, defend, reimburse and hold the state of Montana, Department of Natural Resources and Conservation, P.O. Box 201601, Helena, MT 59620-1601, and it's surface lessees (hereinafter cumulatively referred to as "the State") harmless for any liability arising from the past, present, or future use of any state~ land for which the Pipeline has received pipeline easements as of September 6, 1996. The Pipeline's obligation to indemnify the State shall apply to any liability arising under any environmental, pollution, and health laws, rules, or regulations, including liability for release of hazardous wastes or hazardous or toxic substances or other pollution or environmental damage or condition under any state or federal law, rule, or amendment thereto.

It is understood and agreed that the Pipeline shall have no obligation to indemnify the State for the negligent or intentional acts of the State, it's employees, agents, representatives, or lessees. This duty shall extend to all claims, judgments, losses, penalties, liabilities (including strict liability), encumbrances, liens, costs, and expenses of investigation and defense (including attorney fees) of any claim, whether or not such claim is ultimately defeated, and any good faith settlement, including reasonable attorney fees and disbursements and consultant fees. It shall include the costs of preparation of remedial investigations and feasibility studies and reports, the cost of any cleanup, remediation, removal, response, abatement, containment, closure, restoration, or monitoring required by federal or state agency, and liability to any third person or governmental agency to indemnify it for those costs.

Further, the Pipeline shall indemnify, defend, reimburse, and save the State harmless from all claims and lawsuits that may result from any and all damages, injury or death to persons and/or property that occur upon or about said land caused by or arising out of the Pipeline's use and occupancy of the easement area.

Effective the 6th day of September, 1996.

YOUR PIPELINE COMPANY

By: Your name

PROVINCE OP Alberta

Canada

0n this 14th day of April ,1997, before me,

the undersigned, a Notary Public for the Province Of Alberta

personally appeared Your name

known to me to be the PRESIDENT

of the corporation that executed the within

instrument, and acknowledged to me that said corporation executed

the same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year first hereinabove written.

Your notary

(SEAL) Notary Public for the Province of Alberta

Residing at Calgary, Alberta

My Commission expires At Her Majesty's Pleasure