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HomeMy WebLinkAbout2011 Ordinance No. 046ORDINANCE NO ~ SERIES OF 2011 BY AUTHORITY COUNCIL BILL NO. 36 INTRODUCED BY COUNCIL MEMBER OLSON AN ORDINANCE APPROVING THE GRANT OF AN EASEMENT TO B P WIND ENERGY NORTH AMERICA INC. FOR TRANSMISSION FACILITIES ON THE BYERS BIOSOLIDS FARM. WHEREAS, BP Wind Energy North America Inc. is proposing to develop a private transmission line through Kit Carson, Washington and Arapahoe Counties; and WHEREAS, this will enable BP to transport power from their prospective wind farm projects in eastern Colorado to the Front Range power market; and WHEREAS, the Littleton/Englewood Byers biosolids fann property is within BP 's area of interest for transmission line development ; and WHEREAS, payments from the transmission Right-of-Way agreements provide an additional revenue stream to participating landowners w ith minimal impact to existing farming and ranching operations; and WHEREAS, in May 2010 Littleton/Englewood Waste Water Treatment Plant received a request for an easement from BP to construct a private, power transmission line (above ground) through the Byers biosolids farm; and WHEREAS, the easement would be 100 feet wide, and two miles in length and would house approximately ten power transmission structures; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. The City Council of the City of Englewood, Co lorado hereby authorizes the "Grant of Easement and Easement Agreement for Transmission Facilities", between the BP Wind Energy No1ih America Inc ., City of Littleton and the City of Englewood, Colorado, as attached hereto as Exhibit A Section 2 . The Mayor is authorized to execute said Grant of Easement Agreement for and on behalf of the City of Englewood. Introduced, read in full, amended and passed on first reading on the 18 th day of July , 20 11 . Published by Title as an amended Bill for an Ordinance in the City 's official newspaper on the 22nd day of July , 2011 . 11 bi Published as an amended Bill for an Ordinance on the City's official website beginning on the 20th day of July, 2011 for thirty (30) days . Read in full, amended the fee schedule to adopt annual payments and passed as amended on the 15th day of August, 2011. Published as an amended Bill for an Ordinance on the City's official website b egi1ming on the 26 th day of August, 2011 for thirty (30) days. Read by title as amended and passed on final reading on the 6th clay of September, 2011. Publi shed as amended by title in the City's official newspaper as Ordinance No. '-/&, Series of 20 11, on the 9th day of September, 2011. Publi shed by title as amended on the City's official website beginning on the 7th day of September, 2011 for thirty (30) days. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true co p y of _0~ amended Ordinance pa ssed on final reading and published by title as Ordinance No. --ZJa Series of 2 011. Recording Requested By and When Recorded Return to: Land Manager BP Wind Energy North America Inc . 700 Louisiana, 33 rd Floor Houston, TX 77002 (713) 354-2130 For Recorder's Use Only GRANT OF EASEM:ENT AND EASEMENT AGREE1\1ENT FOR TRANSMISSION FACILITIES This GRANT OF EASEMENT AND EASEMENT AGREEMENT FOR TRANSMISSION FACILITIES (this "Agreement") is made, dated and effective as of ______ , 2011 (the "Effective Date"), between the City of Englewood and the City of Littleton, each to an undivided one-half interest (Collectively "Grantor"), and BP Wind Energy North America Inc., a Virginia corporation ("Grantee"). Gran.tor is the sole owner of that certain property located in Arapahoe County, Colorado, as more particularly described in Exhibit A attached hereto · and made part hereof (the "Property"). 1. Grant of Transmission Easement. For good and valuable consideration, the legal sufficiency of which is hereby acknowledged by Grantor, Grantor hereby grants to Grantee and its successors and assigns, an exclusive easement (''Transmission Easement") on, along, over, under and across a portion of the Property one hundred (100) feet wide (such portion of the Property, the "Easement Area" as more particularly described in Exhibit B attached hereto and made part hereof). The Easement Area may be used by Gl·antee for the following purposes and no other: to erect, construct, reconstruct, replace, remove, maintain and use a single line of poles, with such wires and cables as from time to time are suspended therefrom for the transmission of electrical energy (not to exceed 345 kilovolts) and/or for communication purposes that are directly related to and dedicated solely for Grantee's operations, and all necessary and proper foundations, footings, guy wires, anchors, crossanns and other appliances, fixtures and facilities for use in connection with said towers, poles, wires and cables on, along, over, under and/or across the Easement Arna. The Easement Area may exceed 100 feet in width by up to 50 feet to the extent reasonably necessary to provide for an airspace overhang of Transmission Facilities (as defined below) loc ated on the Property to allow for blow-out of transmission wires. Said towers, poles, wires, cables, foundations, footings, guy wiJ:es , anchors, crossarms, appliances, fixtures, and facilities are herein collectively called the "Transmission Facilities." 2. Payment. In consideration of the rights granted hereunder, Grantee agrees to pay Grantor the amounts set forth in the Fee Schedule attached hereto ("Fee Schedule"). 3. Construction Activities. During the construction of the Transmission Facilities, Grantee may use for construction purposes an additional fifty (50) feet of land in total on either or both sides of the Easement Area. Grantee will use commercially reasonable efforts to minimize Page 1 of 13 E X H I B I T A surface disturbance on the portion of the Property lying outside of the Easement Area during construction, as more particularly described in Section 14 of this Agreement. Grantee shall notify Grantor of the commencement and completion of construction on the Easement Area. 4. Access. Grantor also hereby grants to Grantee an access easement (the "Access Easement") over, across and along the Easement Area by means of roads and lanes thereon if existing, or otherwise by such route or routes as Grantee may construct from time to time for the purposes of (a) ingress to and egress from Transmission Facilities (whether located on the Property or elsewhere) and (b) entering onto the Easement Area at any time to conduct inspections, tests, geotechnical reviews, soil tests, environmental studies, wildlife and/or habitat studies, transmission studies, archeological assessments, land surveying, title examinations, site engineering, and such other activities as Grantee reasonably deems necessary or appropriate for determining whether the Easement Area is or remains suitable for Grantee's pe1mitted purposes under this Agreement. Grantee shall consult with Landowner on the location of any such new roads and lanes prior to their construction. Grantee shall also have the right to maintain and improve any such roads and lanes; provided, however, that Grantee shall compensate Grantor for any damage caused thereby as provided in Section 14, below. 5. Tenn and Tennination. Subject to the tenns and conditions of this Agreement, the tem1 of this Agreement shall be perpetual, ~ommencing on the Effective Date, unless and until one of the following events occurs: (a) the Agreement is tenninated by Grantee by written notice to Grantor, or (b) "Staii of Construction" (as defined below) has not occuned by the date which is ten (10) yeai·s after the Effective Date, in which case this Agreement shall automatically terminate. As used in this Agreement, "Start of Construction" shall be deemed to have occun-ed upon the earlier of (i) the installation of ai1y Transmission Facilities in the Easement Area or (ii) the installation of the first transmission pole or vertical structure on the transmission project of which the Easement Area will be a paii. If construction of the Transmission Facilities on the Easement Area has not been completed within twelve (12) months after Staii of Construction; or if after the date commercial quantities of electricity are first transmitted by Transmission Facilities located on the Easement Area, Grantee ceases to operate Trai1smission Facilities on the Easement Area for a period of twenty-four (24) consecutive months, then unless due to an event of force majeure, Grantor may elect to terminate this Agreement by written notice to Grantee. 6. Removal. Upon te1mination of this Agreement, Grantee shall (a) upon written request by Grai1tor, prepare ai1d place of record in the official real property records of Arapahoe County, an instrument releasing all of Grantee's right, title and interest in ai1d to the Property under this Agreement, and (b) as soon as practicable thereafter, remove all above-ground Transmission Facilities and transmission line poles down to a depth of four feet ( 4') from the Easement Area ai1d restore the soil surface to a condition reasonably similai· to its original condition. Within sixty (60) days of completion of construction of Transmission Facilities on the Prope1iy, Grantee shall provide security ("Removal Bond") to cover the estimated removal costs associated with the Transmission Facilities then on the Prope1iy pursuant to this section. The Removal Bond shall be, at Grantee's option, either a removal bond from ai1 individual or entity engaged in the construction business and reasonably acceptable to the parties, a surety bond from an issuer with a Best's Rating of not less than A, a corporate guarantee (from a finai1cially responsible entity that is reasonably acceptable to the parties and whose credit rating is investment grade), a letter of credit issued by a financial institution reasonably acceptable to the parties, a cash deposit, or Page 2 of 13 other security reasonably acceptable to both parties. The amount of the Removal Bond shall be the estimated cost of removing the Transmission Facilities, net of their estimated salvage value . In the event the county or other governmental authority requires Grantee to provide security for removal or decommissioning of the Project, Grantee shall provide a single Removal Bond that benefits both Grantor and the governmental authority in a manner consistent with the requirements of the governmental authority, and the governmental authority shall have access to the Property pursuant to reasonable notice to effect or complete the required removal or decommissioning. If Grantee fails to remove such Transmission Facilities within twenty -four (24) months of termination of this Agreement, or such longer period as Grantor may provide by extension, Grantor may do so, in which case Grantee shall reimburse Grantor for reasonable out- of-pocket costs ofremoval and restoration incurred by Grantor. 7 . Character of Easements. This Agreement and the Transmission Easement and Acces s Easement shall run with the Property, whether or not this Agreement and/or the Transmission Easement and/or Access Easement are referenced or described in any conveyance, ground lease or other instrun1ent granting rights in, to or under all or any portion of the Property. This Agreement and the Tra11Smission Easement and Access Easement shall inure to the benefit of, and be binding upon, Grantor and Grantee and their respective transferees, successors and assigns and all persons claiming under them. Any sale or other transfer of the Property by Grantor shall be subject to this A gr eement and the Transmission Easement and Access Easement. The Transmission Easement and Access Easement are irrevocable, and Grantor has no right to terminate this Agreement except as provided herein. Grantor further agrees with respect to the Transmission Easement and Access Easement that, ex cept as provided in Section 5, abo v e, (a) no act or failure to act on the part of Grantee shall be deemed to constitute an abandonment, surrender or te111lination thereof except upon recordation by Grantee of a quitclaim deed or other release or termination instrument specifically ternlinating the Transmission Easement or Access Easement or conveying the Transmission Easement or Access Easement back to Gran.tor, or as otherwise may be declared by an order of a court having proper jurisdiction over this Agreement; (b) non-use of the entirety of the Transmission Easement, Access Easement and/or Easement Area shall not prevent the future use of the entire scope thereof in the event the same is needed; and ( c) no use of or improvement to the Easement Area or any lands benefited by the Transmission Easement or Access Easement (within the scope of rights described in Section 1 and Section 4 of this Agreement), and no transfer of the Transmission Easement or Access Easement shall, separately or in the aggregate, constitute an overburdening of the Transmission Easement or Access Easement. 8. Assignment. Grantee may convey or assign this Agreement or its rights with respect to the Transmission Easement or Access Easement at any time , in whole or in part, to one or more assignees or subassignees, without the need for Grantor's consent. Grantee shall have the right to make a partial conveyance or assignment of the Transmission Easement or Access Easement resulting in two or more persons or entities having interests as tenants-in-common who shall have the right to jointly use any Transmission Facilities and/or roads on the Property for ingress to and egress from the Transmission Facilities. The assignor under any assignment hereunder shall be released from obligations and liabilities accruing after the date such obligations and liabilities are assun1ed by the assignee, to the extent assumed by the assignee. The assignee under any assignment of this Agreement shall assume the obligations and liabilities accruing hereunder from the date and to the ex tent such obligations and liabilities are assigned by the assignor. Grantee shall pro vide Grantor with the name , address and contact information for any as signee s P age 3 of 13 or subassignees hereunder for notice purposes, as well as a copy of any recorded document evidencing such assignment. 9. Compliance with Laws . Grantee shall comply with all laws, regulations and rul es governing the erection, construction, reconstmction, replacement, removal, maintenance a11d use of the Transmission Facilities. Gra11tor agrees to cooperate fully a11d promptly with Grantee, so long as such work is accomplished at no out-of-pocket cost to Grantor, a11d to join in all applications for pem1its, licenses and governmental approvals or requests for other instruments if necessary for purposes of the intended use or development of the Easement Area or the Property . 10. J'vfaintenance; Costs. Grantee shall have the right to make all foreseen and unforeseen and ordinary a11d extraordinary changes and repairs which may be required to the Transmission Facilities, and shall maintain and keep the Easement Area in good order, repair and condition, including but not limited to trinnning, cutting and removing trees and U11derbrush anywhere on the Prope1iy as reasonably necessary if any limbs, branches or other parts are within or overhang the Easement Area. When Grantee perfomis such maintenance activities, Grantee shall remove all debris created (such as, but not limited to, tree limbs, underbrush, etc.) a11d dispose of such debris offsite. All costs and expenses incident to the erection, construction, reconstruction, replacement, removal, repair, maintenance and use of the Transmission Facilities, including the trimming and cutting of any trees and widerbrush, shall be borne by Grantee. 11. Grantor's Right to Use the Easement Area. Notwithstanding the reservation of exclusivity in Section 1 of this Agreement, Grnntor retains the right to use the Property , including the Easement Area, for all purposes not inconsistent with, and which will not interfere with, the rights granted to Grantee by this Agreement, including, without limitation, dry land famling on the Prope1iy . Specifically, but without limiting the generality of the foregoing, (i) Grantor shall not 1mde1ialce or allow any digging , tunneling or other form of construction activity in the Property which would disturb or damage the Transmission Facilities, unearth, obstruct or interfere with the operation and use of the Transmission Facilities or endanger the lateral support to the Easement Area or Transmission Facilities, and (ii) Grantor shall not grant other persons easement rights in the Property if such easement rights shall in any way interfere with the easement rights granted Grantee under this Agreement. The pariies agree that dry lar1d farming practices employed on the Prope1iy as of the Effective Date are consistent with, and shall not interfere with, Grantee's rights 1mder this Agreement. 12. Indemnity. Graritee shall, at all times, save ar1d hold hamiless and indemnify Grantor, its officers, partners , agents, contractors ar1d employees, from and against all losses, darnages, expenses, claims, demar1ds, suits ar1d actions for personal injuries and property darnage outside the Easement Area, to the extent caused by the negligence or willful misconduct of Grar1tee, its officers, partners, agents, contractors arid employees. 13. Quiet Eni oyment. Grantor represents ar1d warTar1ts to Grantee that Gran tor has good title to the Prope1iy and the Easement Area arid warrants title to arid quiet enjoyment of the Transmission Easement, Access Easement and the Easement Area by Grantee and Grantee arid Grantee's members, managers , agents, licensees, contractors, subcontractors, lessees, sublessees, morigagees, successors, and assigns against the lawful claims and demands of all persons whomsoever. Grantor shall cooperate with Grantee, at Grantee's sole expense, to obtain a non- Page 4 of 13 · disturbance agreement or other appropriate agreement from any party that holds a lien, easement, lease , mortgage, deeds of trust, mineral or oil and gas right, option to purchase or lease, or any other encumbrance or exception to Grantor 's fee title ownership of the Property, recorded or unrecorded (collectively, "Liens"). A non-disturbance or other agreement is an agreement between Grantee and Grantee's successor and assigns and a holder of a Lien which provides that the holder of the Lien subordinates its rights under the Lien and shall not disturb or interfere with any of the rights or benefits granted under this Agreement or terminate or ex tinguish this Agreement. Grantor agrees to satisfy and pay when due all obligations under any Lien affecting the Property including any taxes and assessments. If Grantor fails to satisfy and pay when due all obligations under any Lien, Grantee shall be entitled (but not obligated) to make payments in fulfillment of Grantor 's obligations to the holder of the Lien and may offset the amount of such payments from amounts due Grantor under this Agreement or seek reimbursement from Grantor, which amounts Grantor agrees to promptly pay upon written demand. 14. Surface Damage. In the event that Grantor suffers damage to crops, grass, soil, fences, trees, and other property or improvements on the Property as a result of Grantee's construction, reconstruction, replacement, removal, maintenance, operation and use of the Transmission Facilities, Grantee shall pay Grantor fair compensation for any such losses or damage caused by Grantee , and, if the parties cannot reach agreement as to the amount which would constitute fair compensation, either party may pursue all remedies av ailable to such party at law. Should a growing crop be dan1aged or destroyed by Grantee , "fair compensation" for purposes hereof shall be calculated in acco r dance with the rate of the average production per acre in the general area as determined by the local NRCS Office , multiplied by the current market price. Should a tree be damaged or destroyed by Grantee, "fair compensation" for purposes hereof shall be calculated in consultation with Colorado State University's Agricultural Experiment Station and Cooperative E:>..'tension Service. Grantee will take reasonable care when removing top soil, to separate said top soil from the subsoil, and to restore said top soil to the surface to the satisfaction of Grantor, so as to, as nearly as is commercially practicable, restore the land to its original state after both construction on the Property and operations on the Easement Area have been completed, and shall use commercially reasonable efforts to remediate any soil settling identified by Grantor for a period of three (3) years after completion of construction of Transmission Facilities on the Property. Other than as expressly set forth herein, Grantee shall not be responsib le to pay Grantor any losses of income, rent, business opportunities, profits or other losses arising out of Grantor 's inability to grow crops or otherwise use the Easement Area. 15 . Financing. 15.1 Grantee may collaterally assign, mortgage or otherwise encumber its interest in this Agreement to a Financing Party (as hereinafter defined) under a Mortgage (as hereinafter defined). The term "Financing Party" means any institution (including any trustee or agent of behalf of such institution) providing debt or other financing to Grantee or its successors or assigns . The term "Mortgage" shall mean any mortgage, deed of trust, deed to secure debt or other security instrnment by which Grantee's interest under this Agreement is mortgaged, conveyed, assigned or otherwise transferred to secure a debt or other obligation to a Financing Party. Each Financing Party who provides notice to Grantor of its Mortgage shall be referred to as "Mortgagee." In the ev ent any such Mortgage is granted , the Mortgagee thereunder shall, for so long as its Mortgage remains in effect, be entitled to the protections described in the following pro v isions of thi s P age 5 o f 13 Section 15, upon delivery to Grantor of written notice of its name and address. 15 .2 So long as any Mortgage remains in effect, this Agreement shall not be modified, and Grantor shall not accept a surrender of the Property or a termination or release of this Agreement prior to the expiration of the term hereof, without the prior consent of all Mortgagees. 15.3 Grantor, upon providing Grantee any notice of (i) default under this Agreement or (ii) termination of this Agreement, shall at the same time provide a copy of such notice to each Morigagee. Such M01igagee shall have the same period, after the giving of such notice , for remedying any default or causing the same to be remedied (but shall have no obligation to remedy or cause the remedy of any default), as is given Grantee after the giving of such notice to Grantee to remedy the default specified in any such notice. The Morigagee shall have the absolute right to do any act or thing required to be performed by Grantee under this Agreement, and any such act or thing performed by a Mortgagee shall be as effective as if done by Grantee itself. Following acquisition of Grantee's easement interest hereunder by the Mortgagee or its assignee or designee as a result of foreclosure of Grantee's easement interest or assignment of Grantee's easement interest in lieu of foreclosure, or by a purchaser of Grantee's easement interest at a foreclosure sale, tbis Agreement shall continue in full force ru1d effect and the Mortgagee or other pariy acquiring title to the easement estate shall, as promptly as reasonably possible, commence the cure of any defaults hereunder and thereafter diligently process such cure to comp letion; provided, however, the Mortgagee or other pruiy acquiring title to the .easement estate shall not be required to cure those defaults which are not reasonably susceptible of being cmed or perfonned by such pariy ("Non-curable Defaults"). Non-curable Defaults shall be deemed waived by Gra11tor as to ar1y pariy acquiring title to the easement estate upon completion of foreclosure proceedings or acquisition of Grantee's interest in this Agreement by such pariy. Upon the subsequent sale or other transfer by the Mmigagee or other acquiring pariy of the easement interests acquired pursuant to foreclosure or assignment in lieu of foreclosure , the Mortgagee or other acquiring pariy shall have no fmiher duties or obligations hereunder arising after the effective date of such subsequent sale or other transfer. Neither the bankruptcy nor the insolvency of Grantee shall be grounds for terminating this Agreement. 15 .4 Grantor shall execute such estoppel certificates ( certifying as to such matters as Grantee may reasonably request, including, without limitation, that no default then exists under this Agreement to Grantor's knowledge, if such be the case) and/or consents to assignment and/or non-disturbar1ce agreements as Grantee or any Mortgagee may reasonably request from time to time. 15.5 Without limiting any other provisions of this Agreement, including Section 19 , in the event Grantor wishes to te1111inate this Agreement as a result of ar1y default by Grantee liereunder after expiration of any applicable period of notice and cure, Grantor shall give prompt notice to the Mortgagees, and shall not tenninate this Agreement w1less and until it has complied with this Section and M01igagees have elected not to respond to Grantor's notice within the period hereinafter described . Grantor shall, upon written request of th e first priority Mortgagee, made within foriy ( 40) days after notice to such Mortgagee, enter into a new easement agreement with such Mortgagee, or its designee, within twenty (20) days after the receipt of such request. Such new easement agreement shall be effective as of the date of the tem1ination of this Page 6 of 13 Agreement by reason of default by Grantee, and shall be for a perpetual term (subject only to any ternrination rights expressly set forth in this Agreement) and upon the same terms, covenants, conditions and agreements as contained in this Agreement. Upon the execution of any such new easement agreement, the Mortgagee shall agree in writing to perfonn or cause to be performed all of the covenants and agreements set forth in this Agreement to be performed by Grantee to the extent that Grantee failed to perform the same prior to the execution and delivery of the new easement agreement. 16 . Notices. All notices, requests and communications (each, a "Notice") under this Agreement shall be given in writing, by (i) personal delivery ( confirmed by the courier delivery service), or (ii) first class certified mail, postage prepaid, return receipt requested, to the individuals and addresses indicated below: (a) If to Grantor: City of Englewood/ City of Littleton c/o Littleton/Englewood Waste Water Treatment Plant Attn: Operations Manager 2900 South Platte River Drive Denver, Colorado 80110-1460 Facsimile: ______ _ (b) If to Grantee: BP Wind Energy North America Inc. 700 Louisiana, 33 rd Floor Houston, TX 77002 Attention: Land Manager Facsimile: (713) 354-2120 ( c) If to Mortgagee: At the address indicated in Mortgagee's notice sent to Grantor under Section 15 .1 hereof. Except as expressly provided herein, any Notice provided for herein shall become effective only upon and at the time of first receipt by the paiiy to whom it is given, unless such Notice is only mailed by certified mail, return receipt requested, in which case it shall be deemed to be . received five (5) business days after the date that it is mailed. Any paity may, by proper written notice hereunder to the other pfiliy, change the individual address to which such Notice shall thereafter be sent. 17. Legal Matters . (a) This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado , excluding the choice of law provisions thereof. (b) The parties agree that any rule of construction to the effect that ambiguities are to be resolved in favor of either paiiy shall not be employed in the interpretation of this Page 7 of 13 Agreement. No waiver by a party of any provision of this Agreement shall be deemed to be a waiver of any other provision hereof. The use of the neuter gender includes the masculine and feminine, and the singular nwnber includes the plural , and vice versa, whenever the context so requires. The te1111s "include", "includes" and "including", as used herein, are without limitation. Captions · and headings used herein are for convenience of reference only and do not define, limit or otherwise affect the scope, meaning or intent hereof. The term "hereof' or "herein" means the entirety of this Agreement w1less otherwise indicated. 18 . Integration; Amendment. This Agreement, when executed, approved and delivered, together with all exhibits attached hereto, shall constitute the entire agreement between the parties and there are no other representations or agreements, oral or writien, except as expressly set forth herein. This Agreement may not be amended or modified except by a written agreement signed by the parties hereto. 19 . Default; Remedies. If any party should fail to perform any of its obligations under this Agreement within thirty (30) days after the other party has given such paity written notice of such failure ( or such longer period if the failure cannot be cured within thirty (30) days but the defaulting party commences such cure within thiriy (30) days and thereafier diligently prosecutes such cure to completion), including failme to make any payments due hereunder, then the non- defaulting party shall have the right, at its option ai1d without further notice, but subject to the limitations set forth in the last sentence of this section, to exercise, in addition to ai1y remedies expressly set forth in this Agreement, any and all remedies available in law or in equity, and any court enforcing the rights ai1d dutie s granted in this Agreement shall have the power (insofar as that p ower may be granted by contract) to issue restraining orders or injunctions as necessary to enforce the provisions of this Agreement. Notwithstai1ding the foregoing or ai1y rights at law or equity, neither this Agreement nor the rights of Grai1tee granted hereunder shall be terminated under any circumstances. 20. Further Assmai1ces. Each party agrees that it will without :fmther consideration execute and d el iver such other documents and take such other action as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. The parties aclmowledge ai1d agree that the provisions of this Section and Section 22 shall survive the execution ai1d recording of this Agreement, and the Grantee may seek specific performance of said Sections, together with such other legal and equitable remedies as may be provided by law. 21. Inaccuracy of Legal Description or Ownership. In the event of ai1y inaccuracy in the description of the Property or Easement Area in E xhibit A or Exhibit B, respectively, or in the description of the paities in whom title to the Property is vested, Grantor ai1d Grantee shall ainend this Agreement to c6n-ect such inaccuracy in order to accomplish the intent of Grantor and Grantee. 22. Recording. Grantor and Grantee agree that thi s Agreement (without the Fee Schedule) shall be recorded in the official real property records of Arapahoe County. 23. Severability. If any tem1s or provisions of this Agreement are deemed to be invalid or un enforceable, the remainder of this Agreement shall not be affected thereby. Page 8 of 13 24. Counterparts . This · Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original agreement, and all of which shall constitute one agreement. [signature pages follow] Page 9 of 13 IN" WITNESS WHEREOF, Grantor a11d Grantee have caused this Agreement to be executed ai1d delivered by their duly authorized representatives as of the Effective Date. "GRANTOR" City of Englewood By: Na111e: James I<. Woodward, Mayor Date: STATE OF Colorado COUNTY op Arapahoe ) ) ss ) The fo1:egoing instrument was aclmowledged before me this __ day of _____ , 2011, by Jame s K. Woodward as Mayor of the City of Engle-wood, perso nally lmown to me ( or proved to me on the basis of satisfactory evidence) to b e the person v,1l10se name is s ubscribed to the within instrument and aclmowledged to me that he executed the same .in his authorized capacity on his own behalf. Witness my hand a11d official seal. Notary Public for the State of _______ _ My. cmTu"'Uissi on expires: Conm1ission No. [SEAL] Page 10 of 13 "GRANTOR" City oJf JUWetoill By: Narne: Date: STATE oF Cnlo rado ) ) ss COUNTY OJ/ fdro.-po..ho e, ) · The Jo.re.going instrumeµt was a9l91owled,geq 'befo;reme tµis • 3t:>¾ay of :Sune... 20'11, by mo.~or as of the City of Littleton, personally lmow1i to nie (or p.ro.v.ed to u.it3 on the basis of satj:sfoctqry evidence) to be the person whose 11ame is ,slibscribedto the within instnm1.ent anci ackno:wl$dged to me tµat lie ex.ecuted the same in his authorized-capacity on his ovvnbehalf. Witi'less ·my hand c].nd ·offici.al seal. NotaryPubhc fQrthe ~t~te Qf Colo ca,do My .corntn ission expireq ,: Commission No. "GRANTEE" BP \Vind Energy North America Inc. By: Title: Date: STATE OF ) ss COUNTY OF ______ _, On ___ , 2011, before me, ______________________ _ Notary Public, personally appeared ______________ , the _____ _ of BP WIND ENERGY NORTH AMERICA INC., personally lmown to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entit y upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. Notary Public My Commission Expires: ______ _ Page 12of 13 Exhibit A THE PROPERTY The Premises is all of the following tracts or parcels of land, situated in Arapahoe County, State of Colorado, more paiiicularly described as follows: sedtion 17, Township 4 Bout;h, '.Range 57 West of the 6th P.M., .EXCEPT tha :West 40 feet and the south 4 0 feet ~hereof as described in Quit Claim Deed recorded September 8, 1948, in Boo~ 616, Page 128, County o:t; Ar1;1.pahoe·, Stat.e of Colo:r:ado. · 1/i.t'li, 01?' SB.CT'l.mill :!:.Bi. ·~t."B:it'T VJ?. ~T •~-~ E:tilJIT; . '1'?.if'!El. NO'R.TH om,~mu.iJ? 10!.F ~ECT:n:10:N :t:s , i __ :~~F--'lr ''!"H'E -~-T ,1t,I!) !w.Sl!IT r '!'.'!DB: I'!O~TH QN"B -~~ 1 EX:ClEf~T 'Mi 1Wfl1'..:ST. ,4(), ~~~-• ~ so~mST ·OOAR'.TEIRJ' mrt.C~:E.1".f 'n:lS ~E\B1: 40 E.1'.S&~ t .~ ·T,ID!( ~D::E~ffi -ON!al'-'·~'Er O.·P ~nm .. ootrr.11l~ST 1QiJ.AR,TEg ,p.:i;' ,S;JmCT'!:100' ,i1:li'.ll • II MtL '1'N "J:--C~WNSIJ:Ilt 4J S:DITT'E! ~GE ~-~· ~Ec\S'T 101l: T~B: 1Gw IE"J.tU.ff'CI'.!i.ll MHP,;J[i!M1.; . co/mny OF .~i.~&.i.trurq(fil.: . siJTl'I',B O.lr' ,C."'G(~O" In the event of inaccuracies in the foregoing legal description, Grantee and Grantor shall modify this Exhibit "A" to correct the inaccuracies. Tax Reference Parcel 1993-00-0-00-024 Parcel 1993-00-0-00-004 Pai·cel 1993-00-0-00-006 S17-T04S-R57W S18-T04S-R57W- S18-T04S-R57W- P age 13 ofl3 (599.49 acres, more/ less) (308.72 acres, more/ less) (305.43 acres, more/ less) Exh ibit B EASEMENT AREA A 100 foot wide tract ofland generally described as: The Nmih 100 feet of the South 130 feet of Sections 17 and 18, Township 4 South, Range 57 West of the 6th PM; County of Arapahoe, State of Co lorado . OJ "° C "' a: £ ::, 0 Vl ._,. Q. ~ C 6 I- "' OJ 3 ,, "' OJ Ci) C n; "' £ :, 0 V) " "-:E. "' C ~ IT] IT] IT] [I] C ,Q t---t, ,-a OJ V) C 0 B~ OJ V) I ~ I' ' ' 0 I: . i : {: I \, ~ [I] ' ', I ' [TI ,J . I~ "\. ' ' [I] 1: I~ ' ' , •, Exhibit B >-w ~ [I] ;;; "tJ C .!!, "O ,", C QJ E :, C C 0 ·-0 1:, N 0 E "' OJ V) ~ C QJ "' l': a. l': 0 [I] - C "' ':I "' ~ 0 "O D ,-c ,- D OJ z E :l( ::; "' z QJ D "' z £ D -;:: 0 ~ C 0 I;; ·;.:; a. ~ ·c u .,, IT] a:; cu ~ "tJ '° "" ..'!! cu £ ~ u "ci <lJ C "O 0 B ~ OJ V, E ~ C "' QJ E .,, ..c J:: OJ [I] -"' .,. .,. t cu 0 z I FEE SCHEDULE 1. Annual Pre-Construction Payments. Within, thirty (30) days after the Effective Date, and within thirty (30) days after each arrn.iversary of the Effective Date occurring p1ior to payment being made under Section 2 below and prior to termination of this Agreement, Grantee shall pay Grantor the sum of One Thousand Dollars ($1,000.00) per mile of the Property included in the Ea·sement Area, witb.. a minimum payment of $2,000.00 per year. 2. After Commencement of Construction. After commencei;nent of construction of Transmission Facilities ·on the Easement Area; .Grantee shall pay Owner the following: Owner to Select Payment Optio1~: One-Time Paymfnt: (Check Here~ (I~itial HeYe -~ Wi~. thirty (30) days after the . commencement of consb.11cuon of Transn11ss10n Facilities OJ;J. the Easement Area, as detem:rined by Grantee, in its sole discretion, G:rantee shall pay Gran.tor the smn of Fifteen Thousand Dollars ($15,000.0'0) per mile of the actual length of the Transmission Facilities in the Easement Area, and Grantor shall not be obligated to rdmburse Grantee, and Grantee shall not offset, any_payments previously made pw.suant to Section 1 above. In the event Grantee installs transmission poles witl,J.in the Easement Are.a, then together with such paynJ;(:mt, Grantee $hall · also pay Grarttor Two Thousand Five Hundred Dollars ($2,50.'0 .00) for each transmission pole that Grantee mstalls in the Easement Area. OR Annual P.ayments: (Check Here _J (Initial Here _J Within thirty (30) days after comµience:1:rnmt of construction of Transmission Facilities on the Easement Area, and thereafter within 30 days of each amriversary of the co1nmence:m~1t of conshuction for the term of this Agree;ment, but not later than the termination of this Agreement? Grantee shall pay Gran.tor the sum of One Thousand Five Hundred Dollars ($1,500) per mile of th~ actual length of the Transmission Facilities in the Easement Area, such amount to be adjusted for inflation at a rate of 2.5% per year over th,e tenn of this Agreement. If the base of the transmission line poles are not located on Grantor's Property, but rather a portion of the Transmission Facilities such as a horizontal cross arm or wire hangs in the airspace above Grantor's Property ("Airspace Transmission Facilities"), then the payment is Thre~ Hundred Dollars ($300) per mile of the actual · length of the Aitspace Transmissio:p. Facilities in the Easement Area. Attachment 1 BP Wind Energy Easement Payment Detail Summary Based on final Agreement language, the following is an estimation of easement payment options (in addition to any described pre-constiuction payments): One-Time Payment: Within thirty (30) days after the commencement of construction of Transmission Facilities on the Easement Area, as determined by Grantee, in its sole discretion, Grantee shall pay Grantor the sum of Fifteen Thousand Dollarn ($15,000.00) per mile of the actual length of the Transmission Facilities in the Easement Area, and Granter shall not be obligated to reimburse Grantee, and Gra11tee shall not offset, any payments previously made pursuant to Section 1 above. In the event Gra11tee installs transmission poles within the Easement Area, then together with such payment, Grantee shall also pay Grantor Two Thousand Five Hundred Dollars ($2,500.00) for each. transmission pole that Grantee installs in the Easement Area. $15,000 x 2 miles= $30,000 $2,500/pole x 14 poles (800 ft spacing)= $35 ,000 + $30,000 = $65,000 $2,500/pole x 9 poles (1,200 ft spacing)= $22,500 + $30 ,000 = $52,500 Annual Payments: Within thirty (30) days after commencement of construction of Transmission Facilities on the Easement Area, and thereafter within 3 0 days of each anniversary of the commencement of construction for the. term of this Agreement, but not later than the termination of this Agreement, Grantee shall pay Grantor the sum of One Thousand Five Hundred Dollars ($1,500) per mile of the actual length of the Transmission Facilities in the Easement Area, such amount to be adjusted for inflation at a rate of 2.5% per year over the tenn of this Agreement. If the base of the transmission line poles are not located on Grantor's Property, but rather a portion of the Transmission Facilities such as a horizontal cross arm or wire hangs in the airspace above Grantor's Property ("Airspace Transmission Facilitiesn), then the payment is Three Hundred Dollars ($300) per mile of the actual length of the Airspace Transmission Facilities in the Easement Area. Year Annua l Payment Total 1 $3,000 2 $3,075 3 $3,152 4 $3 ,231 5 $3,311 6 $3,394 7 $3,479 8 $3,566 9 $3,655 1 0 $3,747 $33,610 11 $3,840 12 $3,936 13 $4,035 14 $4,136 · 15 $4,239 $53,796 16 $4,345 17 $4,454 18 $4,565 $67,159 19 $4,679 20 $4,796 $76,634 21 $4,916 22 $5,039 23 $5,165 24 $5,294 25 $5,426 $102,473 COUNCIL COMMUNICATION Date: Agenda Item Subject July 18, 2011 11 a i Ordinance Approving BP Wind Energy North America Inc. Easement on Byers Biosolids Farm INITIATED BY STAFF SOURCE L/E WWf P Supervisory Committee Stu Fonda, Utilities Director Jim Tallent, L/E WWfP Treatment Division Manager COUNCIL GOAL AND PREVIOUS COUNCIL ACTION None. RECOMMENDED ACTION It is recommended that Council adopt a bill for an ordinance approving the grant of an easement to BP Wind Energy for transmission facilities on the Byers biosolids farm. BP is developing renewable energy programs in eastern Colorado, which require construct ion of electric transmission lin es. The current alignment, crossing the Littleton /Englewood Wastewater Treatment Plant biosolids farm property in Byers, is the most direct path to the nearest Xcel Energy substation near Deer Trail, Colorado. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED BP Wind Energy North America Inc. (BP) is proposing to develop a private transmission line through Kit Carson, Washington and Arapahoe Counties in eastern Colorado. This private transmission line will enable BP to transport power from their prospective wind farm projects in eastern Colorado, to the Front Range power market. The Littleton/Englewood Wastewater Treatment Plant (L/E WWTP} Byers biosolids farm property is within BP's area of interest for transmission line development. Wind and transmission projects add many benefits to the local communities: payments from the transmission right-of-way agreements provide an additional revenue stream to participating landowners with minimal impact to existing farming and ranching operations. Construction of the transmission line will increase demand for local supplies and services, while creating new jobs. Additionally, the tax revenue contributed to the governmental agencies due to the construction of the generation and transmission facilities provides lon g-term benefits to the local communities. In May 2010, the Cities of Englewood and Littleton received a request for an easement from BP to construct a private power transmission line (above ground) through the Byers biosolids farm. The easement would be 100 feet wide, for a 2-mile portion that would house approximately ten power transmission structures .. The BP request package was forwarded to Hill and Robbins for review and recommendation. Copies of the documents were sent to the Littleton and Englewood City Attorneys for review of municipal issues, while Hill and Robbins reviewed operationa l and fee issues. Hill and Robbins reviewed the initial agreement, indicating L/EWWTP's option is to negotiate the best deal possible and addressed the following questions from the Supervisory Committee: • Initial payment• BP 's initial offer of payment was $9,000 per mile, post construction. Pre-construction payment would be $1,000 per mile to hold the easement before construction . These would be one-time only payments. Final negotiated payment is $1 5,000/rnile plus $2,500/tower constructed. • Power of condemnation -BP can use condemnation for utility purposes. • Confinement of easement • The easement will be confined to a certain strip of land at one end of the property, which must be restored, post construction , to its pre-construction condition acceptable to Littleton and Englewood. • Farmer access -The existing dry land farming activities are specifically described in the draft agreement as a use that is compatible with the easement. The farmers do not think it will be difficult to work around the structures. • Devaluation of adjacent property• Factored in as part of the consideration to be paid to the Cities . • Non-exclusive• The easement should be exclusively for power transmission , not for eventual pipeline or cable, and that it should include a strong restoration condition requiring BP to restore any land disturbed by the construction of the power line back to original condition over a three-year period. • Guarantee of structure removal upon termination of agreement -Verbiage added to provide either a removal bond or reimbursement for reasonable out-of-pocket costs of removal and restoration incurred by owner. • Other restrictions • The voltage has also been restricted, and other communication lines are not allowed with the proposed agreement. FINANCIAL IMPACT Easement payments are offered as applicable annual pre-construction payments of $1 ,000 per mile or minimum $2,000/year J2.llJ1 either: 1) One-Time Payment or 2) Annual Payment. One-Time Payment option is estimated to range between $52,500 and $65 ,000, while the Annual Payment option would take between 15-18 years to realize the same amount. Following final agreement development, an evaluation of payment options was completed and , although there may be potential for very long-term revenue benefits, the One-Time Payment option is recommended. LIST OF ATTACHMENTS Littleton BP Ordinance Original Communication with BP Power Line Alignment Tower and Wind Farm Information Proposed Bill for an Ordinance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 CITY OF LITTLETON, COLORADO ORDINANCE NO.~ Series of 2011 Cer-r)ane c_ and Co I e...,. INTRODUCED BY COUNCILMEMBERS: AN ORDINANCE OF THE CITY OF LITTLETON, COLORADO, APPROVING BP ENERGY EASEMENT ON BYERS BIOSOLID FARM WHEREAS, BP Wind Energy North America (BP) is proposing to develop a transmission line across property owned, in part, by the City of Littleton; and WHEREAS, City Charter, Section 59, requires that all conveyances of an interest in land by the city shall be signed by the president of the council. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLETON, COLORADO, THAT: Section 1: The proposed Easement between the City of Littleton and BP Wind Energy North America, Inc. attached hereto is approved. Section 2: transmission easement. The City Attorney will be authorized to make minor changes to the Section 3: Severability. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining sections of this ordinance. The City Council hereby declares that it would have passed this ordinance, including each part, section, subsection, sentence, clause or phrase hereof, irrespective of the fact that one or more parts, sections, subsections, sentences, clauses or phrases may be declared invalid. Section 4: Repealer. All ordinances or resolutions, or parts thereof, in conflict with this ordinance are hereby repealed, provided that this repealer shall not repeal the repealer clauses of such ordinance nor revive any ordinance thereby. INTRODUCED AS A BJLL at a regularly scheduled meeting of the City Council of the City of Littleton on the~ day of T U,r\12.... , 2 011, passed on first reading by a vote of ..]_ FOR and jJ_ AGAINST; and ordered published by posting at Littleton Center, Bemis Library, the Municipal Courthouse and on the City of Littleton Website. 1 Ordinance No. Series of2011 Page2 2 -:f {,J,:of PUBLIC HE.ARINU on the Ordinance to take place on the af day of , 2011, in the Council Chambers, Littleton Center, 2255 West Berry Avenue, 3 Littleton, Colorado, at the hour of7:00 p.m., or as soon thereafter as it maybe heard. 4 PASS ED on second and final reading, following public hearing, by a vote of lo 0 ':'.\ls+ -5 FOR and --AGAIN-ST on the a, ~ day of , I Ltne , , 2011 and ordered 6 published by posting at Littleton Center, Bemis Library, the Municipal Courthouse and on the City 7 of Littleton Website. 8 9 ATTEST: 10 ~~ \ c_lwlc 11 \ 12 13 14 APoRol AS TO FORM: 15 16 l ·,-~ 17 CITY ATTORNEY 18 19 bp BP Wind Energy Idaho. Goshen North wind rann . Site mobmzation for the 124.5 MW Goshen N orth wi nd farm started on March 16. 2010. Located on an 11.000 acre site approl<im ately 10 miles east of the city of Idaho Falls. the Goshen North wi nd farm will utifize B3 GE xfe wind turbine g enerators, each with a rated capacity of 1.5 MW. The project will employ approximately 250 workers during ?f!ak oonstruction and is expected to be in commercial operation by year end. A v:iew of the wberettle lay down yard will be located for Goshen North, Idaho. If you 1,,'<IOIJld 1kt: more .t.'lfonna.."l;)."J ,about 9? VJ! 3 E.'iletgy please ..:ontad. ,;_..,,..anc:!a Abbott Ot!-ect01. ~":E-:mmern anti .Pu!>l1cAffairs at a:bb!Y.t??@bp c:;nvf713} '3...~ 2 100 b p BP Wind Energy BP Wind Ener gy Power f or the U.S., from the U.S. BP Wind Energ y is one of the leading wi nd developers in the U.S. with a portfo!io that includes the opportunity to develop almost 100 projects in 25 States. We have over 1 .200 MW in commeretal operation and more than 1.000 MW in an advanced stage of development. The Cedar Creek I Wind Farm, Weld County, Colorado .. BP Wind Energy currently has interests m eight operafing wind farms . Ca lifornia. The Edom Hills wind farm . The wi nd proj ect became operational In September 2008 and 1s owned and operated 100% by BP Wind Energy. Located in the San Gorgonio Pass. California the wind farm was a re-powering proiect of an existi ng 1 1 MW wind energy facility which saw 139 wi ndmatics replaced with 8 Clipper Li berty 2 .5 MW turb ines increasing the power to 20 MW. There is an exi sting power purchase agreement with Southern California Edison Colorado. The Cedar Creek wi nd farm. The wi nd farm is !ocated in Weld County. Colorado and is a development venture between BP and lnfigen . The 300.5 MW wind-power facility uti lizes 274 wi nd turbines and became operational in December 2007. Power from the Cedar Creek wm d farm 1s sold under a !ong-term contract to the Public Service Company of Colorado, a subsidiary of Xcel Energy Inc. b p BP Wind Energy Kansas. The Flat R idge I wi nd farm. Located m Barber County some 60 miles southwest of Wichita. Kansas the project utilizes 40 Cl ipper 2.5 MW wind turbine generators and became commercially operational in February 2009. W estar Energ y. Inc. owns 50% of phase I of the wind farm and is purchasing from BP 50 MW of the physical power generated under a long-term power purchase agreement The Fowler Ri dge I Wmd Farm, Benton County, Indiana. Indiana. The Fowl e r R1doe I wi nd fann. Located i n Benton County about 90 m iles n orthwest of Indianapolis, phase I of the Fowler Ridge Wind Farm became ope rational in Maren 2009. The first phase utilizes 222 wind turbines -182 Vestas V-82 1. 65 MW turbines and 40 Clipper C-96 2 .5 MW b..ublnes -producing 400 MW of clean energy . BP and Dominion are partners for 301 MW of phase o ne , with BP retaining sole ownership of 99 MW. Phase II of the Fowler Ridge Wind Farm became operational in December 2009 . Phase II utilizes 133 G E SLE turbines each with a rated capacity of 1 .5 MW producing 200 MW of clean energy. BP and Sem pra Generation are 50 percent joint venture partners in the wind farm . Power from Phase II has been sold under four, long-term 50 MW po we r purchase agreements. South Dakota. T he Titan 1 wind farm. Located on a 7 500-acre site south of !he town o f Ree Heights, the Titan I W ind Farm is 100% owned by BP Wind Energy and became operational in December 2009 . Phase I utilizes 10 Clipper wind turbines each with a rated capacity of 2-5 MW producing 25 MW of clean energy . The power from the Titan I Wind Farm has been sold under a loJJg-term power ,p urchase agreement. BP Wind Energy Texas. The Sherbmo I and Silver Star I wind farms . The 150 MW Sherbino I wind farm became commercially operational in October 2008. Located some 40 miles east of Fort Stock!on in Pecos County . Texas the project is a joint venture between BP and NRG Energy. Phase I utilizes 50 Vestas 3 MW wind turbine generators. Power produced from phase I will be delivered into the Electricity Reliability Council of Texas {ER COT) transm ission system and sold on the wholesale power market. The Silver Star I Wind Fann, Erath and Eastland Counties, Texas . The 60 ~ Silver Star I wind farm located 80 miles southwest of the Dallas/Fort Worth metropolitan area became operati onal on September 24 . 2008. The project util izes 24 Clipper Windpower 2.5 MW liberty turbines and is owned and operated 100% by BP Wind Energy . ' ' l(i{!' P.VEAA GE HEIG\.fT I ! I: 50' TYPICAi. Note: For illustration only - Actual structure type and design may vary. 230kV H-FRAME STRUCTURE VIEW APP::.OA 63' 1-1,P?ROX. 2'1'- I :-..., ,-'-/ '-/ / ' / .~ "!( '~ i ,,. I I I I I I I I I 50' TYPICAL 1CQ' PRCl?OS ED P.15 H i ....Qr.J/•'AY NOTTO SCALE Note: For illustration only - 230kV H-FRAME PROFILE VIEW -----------800-1200FT SPAN----------- I --------------+-------------- 25FT TYPICAL GROUND CLEARANCE 22 FT MINIMUM CONDUCTOR GROUND CLEARANCE Ac, •al structure type and design may vary. NOTTO SCALE ~~,:;;~ LON ETR EEEN ERGY ~:::/, o. ASSOCIATES, LLC Timothy A. Butler Independent Representative for LoaeTree Energy & Assoc., LLC Contract Agents for BP Wind Energy North America, Inc. P.O. Box 1686, C11Htlc Rock. Colorado 80104 May 13, 2010 Jim Tallent, Operations Division Manager Englewood/Littleton Bi/City Water Treatment Plant 2900 South Platte River Drive Englewood , Colorado 80110-1460 Dear Mr. Tallent: Attached is BP Wind Energy's (BP) standard information and easement request packet. Essentially, BP is developing an electric transmission line from Eastern Kit Carson County, Colorado to Xcel Energy/PSCo's proposed Missile Silo Substation located north of Deer Trail, Colorado. This transmission line will be used in conjunction with one or more of the renewable energy wind projects under development in Eastern Colorado . The transmission corridor will cross the northern portions of Sections 17 and 18, Township 4 South, Range 57 West of the 6th PM, Arapahoe County, which are titled to the City of Englewood (50%) and City of Littleton (50%). Once you have reviewed this material, 1 would like to speak to you or your representative in regard to the proper procedure for advancing this request. I may be reached at (303) 507-9600 or tabutlcr(i))vi:mcst.nct. Sincerely, Tim Butler, Contract Agent Cc: Mark Wengierski, BP Wind Energy North America Inc. Andy Horvat, LoneTree Energy & Assoc. , BP Wind Energy May 13,2010 Jim Tallent, Operations Division Manager Englewood/T .ittleton Bi/City Water Treatment Plant 2900 South Platte River Drive Englewood, Colorado 80110-1460 Dear Mr. 'l'allenc; O bp . . . . Mark E. Wengidrski !31' Wind Energy North America Inc. 700 l..ouisiana St., 33'~ Floor Houston, TX 77002 Phone : 713-354-4812 Fax: 7 I 3-354-2120 Email : rnark .wengierski@bp .com As you may know, BP is proposing to develop a private transmission line through Kit Carson, Washington and Arapahoe Counties in eastern Colorado. This private transmission line will enable BP to transport power from their prospective wind farm projects in eastern Colorado, to the Front Range power market. Your property is within BP 's area of interest for transmission line development. Wind and transmission pr~jects add many benefits to the local communities: payments from the transmission right of way agreements provide an additional revenue stream to participating landowners with minimal impact to existing farming and ranching operations. Construction of the transmission line will increase demand for local supplies and services, while creating new jobs. Additionally, the tax. revenue contributed to the governmental agencies due to the construction of the generation and transmission facilities provides long-term benefits to the local communities . I have included an infonnational package for your review which includes a brief description of BP's active projects, including the Cedar Creek I Wind Farm in Weld County, Colorado, a Transmission Easemrnt Agreement for your review, sample drawings, and other related documents. BP would appreciate the opportunity to discuss our transmission development plans with you . LoneTree Energy has been contracted by BP to assist in its transmission right of way acquisition efforts. Tim Butler a I.ind agent with LoneTree Energy, will be in contact with you shortly, or you may contact Tim at vour convenience at (303) 507-9600 or tabutler@viawest.net. Jf you have any questions or need any more information please do not hesitate to contact me. Sincerely, / :)i~ :<..;.'J.,,, ·1 ( ,,·,;,,.:• . Mark E. Wengierski