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Tracking#15-52141
<br /> PIPELINE LICENSE
<br /> THIS PIPELINE LICENSE ("License") is made to be effective December 11, 2015, (the"Effective Date") by
<br /> and between BNSF RAILWAY COMPANY, a Delaware corporation ("Licensor") and CITY OF EVERETT, a
<br /> Washington municipal corporation("Licensee").
<br /> In consideration of the mutual covenants contained herein,the parties agree to the following:
<br /> GENERAL
<br /> 1. Grant of License. Licensor hereby grants Licensee a non-exclusive license, subject to all rights, interests,
<br /> and estates of third parties, including, without limitation, any leases, use rights, easements, liens, or other
<br /> encumbrances, and upon the terms and conditions set forth below, to construct and maintain, in strict
<br /> accordance with the drawings and specifications approved by Licensor as part of Licensee's application
<br /> process (the "Drawings and Specifications"), one (1) partial pipeline, eight (8) inches in diameter (the
<br /> uncased portion of the pipeline) and one (1) partial pipeline twelve (12) inches in diameter, inside a twenty-
<br /> four(24) inch steel casing (collectively, the "Pipeline"), across or along Licensor's rail corridor at or near the
<br /> station of Everett, County of Snohomish, State of Washington, Line Segment 0407, Mile Post 0.61 as shown
<br /> on the attached Drawing No. 63277, dated October 6, 2015, attached hereto as Exhibit"A" and
<br /> incorporated herein by reference (the"Premises").
<br /> 2. Term. This License shall commence on the Effective Date and shall continue for a period of twenty-five(25)
<br /> years, subject to prior termination as hereinafter described.
<br /> 3. Existing Improvements. Licensee shall not disturb any improvements of Licensor or Licensor's existing
<br /> lessees, licensees, easement beneficiaries or lien holders, if any, or interfere with the use, repair,
<br /> maintenance or replacement of such improvements.
<br /> 4. Use of the Premises. Licensee shall use the Premises solely for construction, maintenance, and use of the
<br /> Pipeline in accordance with the Drawings and Specifications. The Pipeline shall carry potable water, and
<br /> Licensee shall not use the Pipeline to carry any other material or use the Premises for any other purpose.
<br /> 5. Alterations. Except as set forth in this License, Licensee may not make any alterations to the Premises or
<br /> permanently affix anything to the Premises or any buildings or other structures adjacent to the Premises
<br /> without Licensor's prior written consent.
<br /> COMPENSATION
<br /> 6. License Fee. Licensee snail pay Licensor, prior to the Effective Date, the sum of Seventeen Thousand,
<br /> Three Hundred Seventy-one and No/100 Dollars($17,371)as compensation for the use of the Premises.
<br /> 7. Costs and Expenses.
<br /> 7.1 For the purpose of this License, "cost" or "costs" and "expense" or "expenses" includes, but is not
<br /> limited to, actual labor and material costs including all assignable additives, and material and supply
<br /> costs at current value where used.
<br /> 7.2 Licensee agrees to reimburse Licensor (pursuant to the terms of Section 8 below)for all costs and
<br /> expenses incurred by Licensor in connection with Licensee's use of the Premises or the presence,
<br /> construction and maintenance of the Pipeline, including but not limited to the furnishing of Licensor's
<br /> flaggers and any vehicle rental costs incurred. Licensee shall bear the cost of flagger services and
<br /> other safety measures provided by Licensor, when deemed necessary by Licensor's representative.
<br /> Flagging costs shall include, but not be limited to, the following: pay for at least an eight (8) hour
<br /> basic day with time and one-half or double time for overtime, rest days and holidays (as applicable);
<br /> vacation allowance; paid holidays (as applicable); railway and unemployment insurance; public
<br /> liability and property damage insurance; health and welfare benefits; transportation; meals; lodging
<br /> and supervision. Negotiations for railway labor or collective bargaining agreements and rate
<br /> changes authorized by appropriate Federal authorities may increase flagging rates. Flagging rates
<br /> in effect at the time of performance by the flaggers will be used to calculate the flagging costs
<br /> pursuant to this Section 7.
<br /> Form 424;Rev.201400801
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