HomeMy WebLinkAbout67370
RESOLUTION NO. 6737
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND FUEL
RESOURCES DEVELOPMENT CO. RELATING TO METHANE
GAS RECOVERY AND PROCESSING AT THE SOUTHSIDE
LANDFILL AND AUTHORIZING THE PRESIDENT OF THE
CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Second Amended Agreement dated June 11, 1990 between
Pueblo, a Municipal Corporation and Fuel Resources Development Co.
relating to methane gas recovery and processing at the southside
landfill, a copy of which is attached hereto and incorporated
herein, having been approved as to form by the City Attorney, is
hereby approved. The President of the City Council is authorized
to execute the Agreement in the name and on behalf of the City and
the City Clerk is instructed to affix the seal of the City thereto
and attest same.
SECTION 2.
This Resolution shall become effective upon final passage.
INTRODUCED: May 13, 1991
ATTEST:
i y Clerk
By KENNETH HUNTER
Councilperson
APPROV D:
Pre nt of the City Council
TJ 51.56
c
SECOND AMENDED AGREEMENT
THIS SECOND AMENDED AGREEMENT is entered into as of the 11th
day of June, 1990, by and between Pueblo, a Municipal Corporation
(herein called "City "), and Fuel Resources Development Co., a
Colorado Corporation (herein called "Company "),
W I T N E S S E T H:
WHEREAS, the City is the owner of property located in Pueblo
County, Colorado, which is known as the Pueblo Solid Waste Landfil
and is specifically described in Exhibit "A ", attached hereto
( "Landfill "); and
WHEREAS, the City Council invited proposals for the develop-
ment, recovery and sale of landfill gas at Landfill; and
WHEREAS, Colorado Developent Resource Corporation (CDRC)
presented a proposal to develop, recover and market landfill gas
and construct facilities at Landfill; and
WHEREAS, CDRC and the City did enter into an agreement dated
October 27, 1986 and an amended agreement dated April 11, 1988,
relating to landfill gas recovery; and
WHEREAS, the City approved an assignment of all of CDRC's
rights under the amended agreement to Environmental Technologies
International, Inc. ( "ETII ") by Resolution No. 6251, adopted on
July 25, 1988; and
WHEREAS, ETII has requested that certain provisions of the
amended agreement be further modified and that the City approve an
assignment of all ETII's rights thereunder, as modified, to the
Company;
WHEREAS, the City has agreed to ETII's assignment of the
amended agreement dated April 11, 1988, to the Company, and to
enter into this Second Amended Agreement (herein "Agreement ") with
the Company,
NOW, THEREFORE, in consideration of the foregoing and cove-
nants and conditions set forth herein below, the parties agree as
follows:
1. Landfill Gas Recovery Operation
A. The term "Landfill Gas" shall mean all methane,
carbon dioxide, and other hydrocarbon substances and materials
existing on, in or under the Landfill from time to time whether
part of the surface or mineral estate and whether created by
natural, artificial or biomass processes, occurring before or
after the City acquired the Landfill, including without limita-
tion, all methane, carbon dioxide and hydrocarbons whether
t
existing, presently or in the future, in a liquid, solid or
gaseous state.
B. Subject to the conditions set forth herein, the
City grants to the Company all of City's right, title and interest
in and to Landfill Gas located on, in or under or which may now or
hereafter be produced on or from the Landfill; together with all
necessary rights of entry, access, ingress and egress, upon, under
and through the Landfill and the exclusive right to: (1) explore,
drill and extract, recover, collect, gather, transport, produce,
treat, process, separate, manufacture and synthesize Landfill Gas
located in or under or which may be produced on or from the
Landfill; (2) develop, construct, erect, install, operate,
maintain, modify and remove, all plants, offices, facilities, line
of pipe, towers and other structures or facilities necessary and
convenient to the full enjoyment by the Company of the rights
herein granted, including, without limitation, generating,
processing, reforming, manufacturing, synthesizing, treating,
heating, cooling, gathering, collecting, compressing, transporting
and processing plants, substations, buildings, lines and
facilities; and (3) sell Landfill Gas or any constituents thereof,
or products derived therefrom, including, without limitation, gas,
heat, liquid hydrocarbons, wax, olefin, electricity and other
minerals, products or byproducts derived from or contained in
Landfill Gas (herein "Products") at the Landfill for so long as
Landfill Gas or Products may be recovered or produced on or from
the Landfill or until the Company abandons, in writing, all of its
rights under this Agreement, whichever first occurs. Notwith-
standing any provision in this Agreement to the contrary, Company
shall not without the prior written consent of City inject, add or
flow water or permit the injection, adding or flowing of water
into the Landfill.
C. The rights granted to Company herein are subject
to: (i) the continued use of the Landfill as a solid waste
disposal site and facility, including without limitation, all
existing agreements with Zupan Enterprises, Inc. and such addi-
tional agreements for the use of the Landfill as a solid waste
disposal site and facility as the City may subsequently enter into
and all extensions, renewals and modifications thereto, provided,
that the City shall not modify or enter into any such agreement in
a manner which interferes with Company's rights hereunder without
Company's written consent, which consent will not be unreasonably
withheld, (ii) the City's Certification of Designation and amend-
ments and modifications thereto, (ii) the terms and conditions of
Company's application documents for and the Special Use Permit No.
694 issued by the County of Pueblo, State of Colorado with respect
to Company's use of the Landfill for methane gas gathering and
processing, attached as Exhibit "B" (the "Special Use Permit ")
(Company agrees that upon annexation of the Landfill to the City,
City may enforce the terms and conditions of the Special Use
Permit), and (iii) all easements, reservations and restrictions of
record and public roads.
IWZ
t
D. Absent approval of a Subsequent Project in accordance
with the procedures described in Section 2 below, Company shall
not exercise any of its rights granted hereby within and with
respect to Subsequent Project I Area and Subsequent Project II
Area as shown on Exhibit "C" attached hereto, and until approval
of a Subsequent Project, Company will limit its Landfill Gas
extraction and procession operations to the Initial Project Area,
as shown on Exhibit "C" attached hereto. Notwithstanding anything
to the contrary contained herein, if Company has not received
final engineering design approval in accordance with paragraph
2(E) below for a Subsequent Project on or before May 14, 2000, all
rights granted to Company within and with respect to Subsequent
Project I Area and Subsequent Project II Area shall cease and
terminate.. If Company obtains such approval for a Subsequent
Project for either Subsequent Project I Area or Subsequent Project
II Area on or before May 14, 2000, all rights granted to Company
within and with respect to the other Subsequent Project Area shall
cease and terminate on May 14, 2005 unless Company receives such
approval for a Subsequent Project in such Subsequent Project Area
on or before May 14, 2005.
E. Company will diligently and in timely fashion undertake
the development, construction and operation of the Initial Project
and make payments to City as provided herein.
2. Performance Schedule.
A. The "Initial Project" shall include all operations,
processes, buildings, structures, lines of pipe, gas recovery
wells, water wells, trenches, roads, and other facilities or
systems described in the Special Use Permit, and all subsequent
revisions or supplements thereto approved by the City, including,
without limitation, all plans, drawings and other materials
included in the final engineering design approved by the City
pursuant to paragraph 2(E) below. A "Subsequent Project" shall
include all operations, processes, buildings, structures, lines of
pipe, wells, trenches, roads, and other facilities or systems
shown in a Company's proposal to be submitted to the City in
accordance with paragraph 2(C) below, and all subsequent revisions
or supplements thereto approved by the City, including, without
limitation, all plans, drawings and other materials included in
the final engineering design approved by the City pursuant to
paragraph 2(E) below. The "Project" shall include the Initial
Project and all Subsequent Projects then existing or proposed.
B. The City acknowledges that it has approved the
final engineering design for the Initial Project in accordance
with the provisions of paragraphs 2(C) below and that Company has
commenced construction of the Initial Project. Company shall
substantially complete the Initial Project on or before August 1,
1991.
C. If the Company desires to proceed with any Subse-
quent Project, it shall submit (1) a preliminary design report
-3-
which generally describes the detailed configuration of the
facilities included in the proposed Subsequent Project, (2)
preliminary site plan, (3) engineering design criteria, (4)
construction cost estimate(s), (5) appropriate test data and soil
report(s), (6) report describing the impact on the Landfill and
environment and the permits, licenses and approvals Company
intends to obtain from Federal, State and local governmental
authorities and (7) appropriate timetable flow charts. The City
shall review the documents submitted by the Company and, within
forty -five (45) days after receipt of the documents, will either:
(i) authorize the Company to proceed with the final engineering
design, (ii) request revision of the proposal; or (iii) give
notice to the Company of its rejection of the Subsequent Project.
The City shall not unreasonably withhold approval of any
Subsequent Project. If the City fails to otherwise notify the
Company in writing within said forty -five (45) day period,
authorization to so proceed shall be conclusively deemed to have
been given. Any denial of such authorization to proceed shall
include conditions which, if satisfied, will allow the proposed
Subsequent Project to be approved.
D. The Company shall use its best efforts to
investigate the potential for, and if feasible and economic, in
the Company's sole opinion, to propose a Subsequent Project which
will include the construction of digesting and mulching facilities
at the Landfill; provided that the Company shall not be required
to propose, implement or install any of the systems or facilities
necessary to segregate the substances that would be consumed in
said digesting and mulching facilities. Notwithstanding the
foregoing, nothing herein shall obligate the Company to proceed
with such proposal if the Company determines, in its sole
discretion and at any time, that it would not be in the Company's
best interests to so proceed. No decision by the Company not to
so proceed shall operate or be construed as any waiver of any of
the exclusive rights granted to the Company herein.
E. The final engineering design for the Initial
Project and any Subsequent Projects shall include all architectur-
al, engineering and landscaping plans and designs for all
facilities including water wells, and a report assessing the
impact, if any, of the proposed Project on the Landfill and
environment. The final engineering design shall comply with all
applicable laws, including but not limited to building and zoning
codes, air and water pollution regulations, the Special Use Permit
and the City's Certificate of Designation requirements and shall
ensure that aesthetics and good planning principles have been
given due consideration and that adverse impacts on the
environment and Landfill have been minimized or reasonably
mitigated. The City shall, within forty -five (45) days after
submittal, either approve the final engineering design submitted
by the Company, disapprove the design or request changes based on
the above criteria. If the City does not disapprove the plans or
request changes, in writing, within the 45 -day period, the final
engineering design shall be deemed approved. The Company shall
-4-
make reasonable changes at the City's request based on the above
criteria, but the City shall not unreasonably withhold such
approval.
F. Any review or approval of plans by the City for the
Initial Project or any Subsequent Project or similar activity
conducted by the City under this Agreement is for the separate and
sole benefit of the City for the primary purpose of protecting the
landfill and solid waste disposal operations conducted thereon,
and shall in no way be construed as a representation or approval
that the plans are adequate for the purpose for which they are
intended (other than for the purpose of obtaining approval(s) of
the City hereunder) or in compliance with applicable federal,
state or local law or regulation. No third party shall be
entitled to rely in any manner on any such review or approval by
the City. Review and approval of any design or plans by the City
shall not relieve the Company from any of its obligations under
this Agreement or applicable federal, state or local laws or
regulations.
3. Development, Operation and Marketing Costs It is
understood that the Company shall bear all costs of the Project,
including but not limited to developmental, engineering, regula-
tory, operating, marketing and maintenance costs, and all fees and
expenses relating thereto. The Company may, subject to and in
conformity with all applicable laws and regulations, the require-
ments contained in the April 18, 1990 letter from the Colorado
Department of Health attached as Exhibit "D ", and other regulatory
approval, if required, dispose in a safe and harmless manner the
spoils and residues from its activities, including, without
limitation, mining and extracting Landfill Gas and the develop-
ment, construction, operation and maintenance of the gathering and
processing facilities at the Landfill without fee or charge by the
City other than the payments required herein and applicable solid
waste disposal fees or charges, if any, but at the Company's sole
cost and expense.
4. Pavment Schedule.
A. In full consideration of the exclusive rights
granted herein to the Company to develop, maintain and operate the
Project and all Landfill Gas extracted by the Company from the
Landfill, the Company shall pay the City annual compensation for
each project as follows:
(i) Initial Project $50,000 per year
(ii) Subsequent Project I $25,000 per year
(iii) Subsequent Project II $25,000 per year.
Annual compensation for each Project (the "Annual Payment ") shall
be due and payable in 12 equal consecutive monthly installments in
advance without notice, setoff, or reduction, on the first day of
each calendar month at the office of the City's Director of
Finance. The Company's obligation to make the Annual Payment for
-5-
each Project shall commence on the first day of the month after
such Project is substantially completed and shall continue until
the Company gives written notice of its intent to abandon such
Project or the Agreement is otherwise terminated in accordance
with the terms hereof. Annual Payments for each Project will
escalate at the rate of three (3) percent per year commencing with
the end of the first Annual Payment for such Project.
B. Late Charge on Unpaid Payments. All payments not
paid by the Company within fifteen (15) days after the same shall
become due and shall be subject to a late payment charge in the
amount of one and one -half percent (1.5%) of the unpaid payment
for each calendar month, or fraction thereof, until paid. Such
late charges shall constitute additional required payments under
this Agreement, and failure of the Company to make such payments
to the City when due shall be construed as a violation of the
Company's obligation to make payments.
5. Annual Payment is Payment in Lieu of Other Fees. So
long as the Company performs its obligations under this Agreement,
including payment of the Annual Payment for each Project, the
Company will be exempt from payment of any additional license fees
or charges to the City relating to operation of the Projects at
the Landfill, but payment of the Annual Payments does not exempt
the Company from any lawful taxation upon its personal property,
from sales and use taxes, excavation permit fees and building
permit charges, or uniform charges for the construction of
underground or overhead facilities that are generally applicable
to contractors performing similar work.
6. Security The Company shall deliver to the City a
security deposit to the City in a sum equal to the Annual Payment
to secure full and faithful performance by the Company of all its
obligations under this Agreement. The security deposit shall be
due no later than ten (10) days after the first day of the month
following the month in which the Initial Project is substantially
completed. The security deposit shall be returned to the Company
within thirty (30) days after termination of this Agreement if the
Company has performed its obligations hereunder.
7. Insurance. The Company shall not commence work at the
Landfill under this Agreement until it has obtained, at its own
expense and without cost to the City, all insurance required under
this paragraph or provide adequate evidence of its qualification
as a self insurer. Such insurance or evidence of self insurabili-
ty shall be subject to the approval of the City's Director of
Finance, which approval shall not be unreasonably withheld. The
Company shall maintain such insurance or ability to self insure
during the effective period of this Agreement and pay all premiums
or charges therefor, if any, as same become due.
A. General Public Liability and Property Damage Insur-
ance The Company shall self insure or secure and maintain
General Public Liability and Property Damage Insurance issued to
and covering the liability of the Company with respect to all work
performed by it and all of its subcontractors under the Agreement,
to be written in amounts not less than $150,000 for any injury to
one person in any single occurrence and not less than $400,000 for
injury to two or more persons in any single occurrence, and
$400,000 for each occurrence for property damage. This policy
shall have all necessary endorsements to provide coverage
including contractual coverage but without exclusion for explosion
and collapse hazards and underground hazards. The limits of
coverage contained herein are required minimums; if at any time
the limits of liability of public entities set forth in the
Colorado Governmental Immunity Act ( "Act ") should increase by
statutory amendment to an amount or amounts greater than the
limits of coverage to such greater sum as the Act may provide, or,
at the Company's option, the Company may terminate this Agreement.
B. Automotive Liability Insurance. Whenever the work
covered by this Agreement shall involve the use of automotive or
vehicular equipment, the Company shall secure and maintain during
the period of the Agreement Vehicle and Automotive Liability and
Property Damage Insurance. This insurance shall be written with
limits of liability for any injury to one person in any single
occurrence of not less than $150,000 and for any injury to two or
more persons in any single occurrence of not less than $400,000,
and $400,000 for each occurrence for property damage. This
insurance shall meet requirements of Colorado law, shall include
uninsured /underinsured motorist coverage and shall protect the
Company from any and all claims arising from the use of auto-
mobiles, trucks, tractors, backhoes and similar equipment, whether
owned, leased, hired or used by the Company.
C. Workmen's Compensation Insurance. The Company
shall secure and maintain Workmen's Compensation Insurance,
including Occupational Disease Provisions, covering the obliga-
tions of the Company in accordance with the provisions of the
Workmen's Compensation Act, as amended, of the State of Colorado.
D. Additional Insurance Coverage. The insurance
coverage enumerated in the above subparagraphs constitutes the
minimum requirements and said enumeration and shall in no way
lessen or limit the liability of the Company under the terms of
this Agreement. The Company shall procure and maintain, at its
own cost and expense, any additional kinds and amounts of
insurance that, in its sole judgment, may be necessary for its
protection in the performance of this Agreement or work on the
Project.
E. Certificates of Insurance. Certificates of
insurance for workmen's compensation, public liability and
property damage and automotive liability shall be filed with the
City promptly after the execution of this Agreement.
8. Licenses. The Company agrees to obtain at its expense
and in a timely manner, all licenses, permits, variances and
-7-
approvals from all federal, state and local public entities and
agencies with jurisdiction which may be required to develop and
operate the Project.
9. Property Taxes and Assessments The Company shall
promptly pay and discharge as they become due and before
delinquency, all taxes, assessments, charges, liens (including
mechanics' liens), levies or excises, whether general or special,
ordinary or extraordinary, of every name, nature and kind, which
arise out of, or result from, the activities of the Company on the
Landfill or the Company's interest in the Landfill or improvements
placed thereon by the Company.
10. Eminent Domain
A. Condemnation. If during the term of this Agree-
ment, the Landfill, the Project, or any portion of the Landfill or
Project are condemned or taken by any governmental authority, or
by any corporation having the power of eminent domain, the City
and the Company agree that any condemnation award shall be
equitably apportioned between them to reflect the value of their
respective interests in the Landfill and Project.
B. Taking of Project or Landfil; Termination of Agree-
ment If the whole of the Project or Landfill shall be taken or
condemned as aforesaid, or if such a substantial part thereof is
taken and results in the portion of the Project remaining being no
longer operable as an economically useful unit, in the Company's
sole opinion, then the Company shall have the right, at its sole
option, to terminate this Agreement as of the effective date of
the condemnation. Such termination shall, however, be without
prejudice to the rights of the Company to recover compensation and
damages caused by the condemnation or taking from the condemnor.
C. Rights of Mortgagee, or Transferee Any mortgagee,
assignee or transferee of the Company's rights under this Agree-
ment shall be a proper party to any condemnation proceeding. All
rights of any such mortgagee, assignee or transferee shall derive
exclusively from the rights of the Company herein, and the
agreements between the Company and such mortgagee, assignee or
transferee.
D. Right to Contest Award. In the event either the
City or the Company shall desire to contest the amount of the
award offered by a condemning authority while the other party is
willing to accept it, the unwilling party may make such contest,
including any litigation necessary or desirable for such purpose,
provided that it shall hold the willing party completely harmless
from any loss caused thereby. In the event that there is any gain
in value realized by such contest, the gain shall be paid solely
to the contesting party and the willing party shall have no right
to any part of such gain.
11. Responsibility for Landfill Gas Odor and Migration Con-
C:10
trol Systems. The Company shall assume the responsibility for
control of odor, except odor solely attributable to sanitary sewer
sludge placed on the Landfill by the City. The Company shall
install and operate a gas monitoring system for the disposal areas
of the Landfill. In the event of gas migration, the Company shall
install within the boundaries of the Landfill control and recovery
wells as may be needed.
12. Cooperation with Landfill Operator. The Company
acknowledges and agrees that the City's primary interest and
concern is the use and protection of the Landfill as a solid waste
disposal site and facility. Therefore, Company shall not, without
the prior written approval of the City, construct or install the
Project or any portion thereof on areas of the Landfill which have
not been permanently closed by Operator or City and for which City
has not issued written notification of permanent closure to
Company. The Company shall fully cooperate and not interfere with
the solid waste disposal operations, site reclamation and monitor-
ing activities conducted by the Operator or the City at the Land-
fill; provided that the approval of the final engineering design
for the Initial Project and of any Subsequent Project shall
constitute the City's acknowledgement that the same, if installed
in accordance with the approved final engineering design, will not
interfere with such activities. It shall be the responsibility of
the Company to coordinate its work and activities with the Opera-
tor or City to avoid disruptions, delay or interference with the
Operator's or City's work and activities at the Landfill. If
Company shall disturb or damage the final landfill cover, Company
shall repair and replace the final landfill cover to the condi-
tions required by the City's Certificate of Designation issued by
the County of Pueblo.
13. Default. If either party shall be in default hereunder
or shall fail or refuse to perform any provisions of this
Agreement required on its part to be performed, the other party
may terminate this Agreement by giving thirty (30) days' prior
written notice of termination to the defaulting party specifying
the default, failure or omission, in which event this Agreement
shall automatically terminate unless the defaulting party shall
cure the specified default, failure or omission within thirty (30)
days after receipt of such notice or, if such default, failure or
omission cannot be remedied by the payment of money and cannot
with due diligence be wholly remedied within such 30 -day period,
unless the defaulting party shall commence action to remedy said
default, failure or omission within said 30 -day period, and
thereafter diligently pursue such corrective action. If a party
cures or proceeds to cure an alleged default, failure or omission
of the other party, such party shall not be deemed to have waived
its right to contest whether or not the alleged default, failure
or omission has occurred.
14. Site Conditions and Hazardous Materials.
A. The Company agrees that it has informed itself of
the conditions under which the Company's work is to be performed,
-9-
the existing site and ground conditions and all other matters
concerning or affecting the Landfill and the Project. To the
extent any subsurface testing, logs or information has been
provided to the Company by the City, the City disclaims the
accuracy thereof and shall not be responsible for any variance in
conditions or unforeseen conditions encountered during the
Company's work on the Project or performance under this Agreement.
B. The City is unaware of the presence of any hazard-
ous or toxic wastes or substances regulated under the provisions
of the Resource Conservation and Recovery Act ( "RCRA ") or the
Comprehensive Environmental Response, Compensation, and Liability
Act ( "CERCLA "), and implementing regulations on, under or upon the
Landfill and makes no representations with respect thereto.
Asbestos in potentially friable form may be located on, under, or
upon the Landfill. In the event any such wastes or asbestos are
uncovered or released by the Company during the performance of
work and such wastes or asbestos are required by applicable law,
regulations or regulatory order to be removed, disposed, treated
or encased, the Company shall be responsible for the proper
removal, disposal, treatment or encasement, as the case may be.
C. In the event of any uncovering or release of
hazardous wastes or asbestos by the Company, the Company shall at
its expense provide for testing, mitigation and cleanup in
accordance with all applicable laws and regulations and as ordered
by the Colorado Department of Health, and the Company shall
indemnify and hold City harmless from all fines, claims, demands
and judgments, including costs and attorney fees, arising
therefrom or related directly thereto.
15. Indemnification The Company agrees to indemnify and
hold harmless the City, its officers, agents and employees from
and against any and all suits, demands, claims, costs, penalties,
or expenses (including reasonable attorney fees) which may arise
or be asserted against the City, its officers, agents or employees
by reason of any act or omission of the Company, its officers,
employees, agents or contractors, whether occurring on or off the
Landfill, or the use of the Landfill by the Company, or any
activities conducted on the Landfill by the Company or its
officers, employees, agents or contractors, or the construction,
maintenance or operation of the Project or the Company's
performance under this Agreement.
16. Force Majeure
A. If either the Company or the City is rendered
unable by force majeure to carry out its obligation under this
Agreement, other than the obligation to make money payments under
paragraph 4 hereof, that party shall give to the other party
prompt written notice of the force majeure with reasonably full
particulars concerning same. Thereupon, the obligations of the
party giving the notice, so far as they are affected by the force
majeure, shall be suspended during, but no longer than, the
-10-
continuance of the force majeure. The affected party shall use
its best efforts to diligently remove the force majeure as quickly
as.possible.
B. The term "force majeure" as used herein shall mean
a cause or causes not reasonably within the control of the party
claiming suspension, including, but not limited to, acts of God,
acts of war, riot, fire, explosion, accident, flood, or sabotage;
unavailability of fuel, power or raw material; judicial,
administrative or governmental laws, regulations, rules,
requirements, orders or actions, including modification,
cancellation, suspension or revocation of any permit, license or
other authorization necessary for the operation of the Project as
herein contemplated; injunctions or restraining orders; failure of
any governmental body to issue or grant licenses, permits or other
authorizations necessary for the operation of the Project as
herein contemplated, national defense requirements; labor strikes,
lockouts or injunctions.
C. In the event that a force majeure suspends the
performance of a party's obligations under this Agreement for the
continuous period of more than nine (9) months, either party may
terminate this Agreement upon thirty (30) days' prior written
notice to the other party; provided that the City shall not be
entitled to terminate this Agreement pursuant to this provision if
the Company agrees to resume payment of monthly installments of
the Annual Payment during said 30 days.
17. Removal of Improvements Upon abandonment, termination,
or cancellation of this Agreement as provided herein, the Company
shall remove, within 120 days and at its own expense, all struc-
tures and improvements placed on Landfill by or on behalf of the
Company, and shall, unless otherwise specified in writing by the
City, restore the site of the Project to a condition substantially
comparable to that existing upon execution of this Agreement. If
the Company fails to remove any such structures or improvements
within such period, they shall become the property of the City and
may be removed and disposed of by the City. In such event, the
Company, for a period of twenty -four (24) months after abandon-
ment, cancellation or termination of this Agreement, shall be
responsible for the costs of removing remaining structures and
restoring the site to such condition; provided that the Company
shall be entitled to credit for any salvage value actually
realized by the City from the disposition of property owned by the
Company.
18. Contract Obligation This Agreement constitutes a valid
and binding contract between the Company and the City. If any
material portion of this Agreement is determined by final non -
appealable Court Order to be illegal, against public policy or
otherwise unenforceable, either party shall have the right to
terminate all its obligations hereunder upon 30 days' written
notice.
-11-
19. Modifications; Waiver No act or omission of any
employee or agent of the City shall constitute a waiver or
modification of any term of this Agreement, nor estop the City
from enforcing any term of this Agreement. No verbal agreements
or conversations with any agent or employee of the City, either
before or after execution of this Agreement, shall affect or
modify any of the terms or obligations of this Agreement. All
modifications to this Agreement shall be made in writing and shall
become effective only upon approval by Resolution of the City
Council of the City.
20. Subcontracts and Subcontractors.
A. The Company agrees to be fully responsible to the
City for the acts or omissions of its subcontractors.
B. Nothing contained in the contract documents shall
create any contractual relationship between any subcontractor and
the City.
C. The Company agrees to bind every subcontractor (and
every subcontractor of a subcontractor) to the terms of this
Agreement as far as it is applicable to his work.
21. Assignment of Contract. No assignment or sublease of
this Agreement, any part hereof, or any right hereunder, by the
Company to a non - affiliated entity shall be valid or enforceable
against the City unless the Company has first obtained the City's
prior written consent thereto. No assignment or sublease shall
relieve the Company of its obligations under the terms of this
Agreement. The City expressly consents to the assignment of all
of ETII's rights under the amended agreement dated April 11, 1988
to the Company, which amended agreement shall be cancelled and
terminated upon the filing of an assignment of the same from ETII
to the Company in a form reasonably acceptable to the City
Attorney with the City Clerk. The consent of the City shall not
be required for any subsequent assignment(s) hereof or any right
hereunder, in whole or in part, to one or more affiliated
entities; provided a true and correct copy of the instrument or
assignment is filed with the City Clerk. For the purposes hereof,
the term "affiliated entity" shall include any corporation or
other business entity owned or controlled, directly or indirectly,
by Public Service Company of Colorado or its subsidiaries and any
partnership or joint venture in which the Company or an
"affiliated entity" is a general partner or venturer.
22. Independent Contractor It is expressly agreed and
understood that the Company is, in all respects, an independent
contracting party for the purposes of this Agreement, notwith-
standing that in certain respects the Company may be contractually
bound to follow the directions of the City or an agency thereof.
The Company is in no respect an agent, servant or employee of the
City. Nothing herein shall operate or be construed as creating a
mining or other partnership or joint venture between the City and
-12-
the Company for any purpose. All liabilities of the City and the
Company to third parties, if any, shall be several and not joint.
23. Choices of Law This Agreement shall be interpreted in
accordance with the laws of the State of Colorado.
24. Disputes Notwithstanding any agreement or provision of
law providing for arbitration of disputes, all unresolved claims,
disputes or controversies related to or arising out of this Agree-
ment or performance hereunder shall be settled in a Colorado court
of competent jurisdiction.
25. Attorney Fees. In the event there arises any dispute
regarding the respective rights or obligations of the parties
hereunder, including, without limitation actions to collect
payments due hereunder, the prevailing party shall be entitled to
an award of all its reasonable costs and attorney fees, including
those incurred on appeal.
26. Notice Notice shall be deemed given
received or if mailed by certified mail, postage
date mailed to the City, addressed to:
The City of Pueblo
c/o City Manager
1 City Hall Place
Pueblo, Colorado 81003
and to the Company, addressed to:
Fuel Resources Development Co.
Suite 2100, 17th St. Plaza
1225 17th Street
Denver, Colorado 80202
when actually
prepaid, on the
or, to such other address as either the City or the Company shall
designate in writing to the other party.
27. Time of the Essence In the performance of all the
terms, provisions and conditions of this Agreement, time shall be
of the essence.
28. Remedies Cumulative. All of the rights and remedies of
the City and the Company under this Agreement shall be deemed
cumulative and no one exclusive of the other, or of any other
remedy conferred or allowed by law or equity.
29. The City's Right to Enter. The City reserves the right
to enter at any reasonable time upon the Landfill and any
structures or facilities constructed thereon to inspect the
Landfill and such structures and facilities; provided that all
such entries shall be at the sole risk of the City and the City
shall, except in emergency situations, provide the Company with
advance notice of its intent to enter any buildings or fenced -in
-13-
portions of the Project.
30. Parties Bound. This Agreement is binding on and shall
inure to the benefit of the City and the Company and their
respective successors and approved assigns.
31. Complete Agreement This Agreement constitutes the
complete understanding and agreement of the parties regarding the
subject matter hereof and supersedes any and all prior oral or
written agreements, understandings, or representations regarding
the subject matter hereof.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly approved and executed as of the date first written above.
Approved As To Form:
City Atto nvly
PUEBLO, A MUNICIPAL CORPORATION
By
Pre ent of the City Council
FUEL RE5OU ES DEVELOPMENT CO.
By
Title: Executive Vice President
TJ 43.29 -14-
The parcel of land located in Pueblo County, Colorado and
described as:
The S 1/2 of the NW 1/4, the N 1/2 of the S 1/2, and the S 1/2
of the SW 1/4, all in Section 18, Township 21 South, Range 65 West
of the 6th P.M.; and a portion of the E 1/2 of the E 1/2 of Section
13, Township 21 South, Range 65 West of the 6th P.M. being the East
600 feet of the South 2,975 feet of said Section 13; Pueblo County,
Colorado, containing approximately 361 acres, excepting existing
roads and rights of way and subject to easements, restrictions,
reservations and rights of way of record.
EXHIBIT "A" �.-
JAMES M. BREWER
COMMISSIONER DIST NO. 1
SOLLIE S. RASO
COMMISSIONER DIST NO. 2
GEORGE D. AMAYA
COMMISSIONER DIST. NO. 3
BOARD OF COUNTY COMMISSIONERS
March 28, 1990
Mr. Arthur H. Wong
Project Manager, Synhytech
Fuel Resources Development Co.
Dravo Building Annex
1250 14th Street
Denver, Colorado 80202 -1714
Re: PUEBLO COUNTY PLANNING COMMISSION
Special Use Permit No. 694
Dear Mr. Wong:
SOLLIE S. RASO
CHAIRMAN OF BOARD
JAMES E. SPACCAMONTI
COUNTY MANAGER
JAMES V. PHELPS
COUNTY ATTORNEY
Please be advised that the Pueblo County Planning Commission, at
its meeting held on March 27, 1990, voted to approve Special Use
Permit No. 694 with the following conditions:
1. The waste hydrocarbon, naphtha, and diesel storage tanks
shall be contained within diked areas. Diked areas will
be constructed to at least the National Fire Code
Standards.
2. If the landfill's closure plan is amended, a copy of the
approved amended closure plan shall be submitted to the
Department of Planning and Development within 30 days
after approval.
3. The project shall obtain and maintain fire protection
service from the City of Pueblo.
4. The raw water storage tank shall be constructed and
managed in a manner to maintain a sufficient amount of
water in "reserve" for fire suppression. This amount of
water shall be determined by the City of Pueblo. The
City's determination shall be transmitted to the
Department of Planning and Development prior to the
issuance of a building permit for the raw water storage
tank. PUEBLO COUNTY COURT HOUSE
J ST., PUEBLO, CO 81003 -2292
EXHIBIT "B" , ( 719- 543 -3550) JUN
CE is-i.%
FAX 5440342 R - --
Mr. Arthur H. Wong
Re: PCPC /SUP No. 694
March 28, 1990
Page Two
5.
The FUELCO
project
shall be developed and operated in
accordance
with the
intent expressed in its application
documents.
6.
A security
fencing
system and lockable gate(s) will be
installed around
the
perimeter of the plant.
7.
The project
shall
comply with all applicable local,
State, and
Federal
regulations.
8.
This permit
shall
be placed on a 1 —year review.
The Planning Commission further requested a response to the
questions and issues Nos. 1 through 6, as set forth at Page 9 of
staff's March 21, 1990 review. This response is not a condition
of approval per se, but the Commissioners would like a response.
If you should have any questions, please do not hesitate to
contact this Department at 545 -2424.
$i rely,
Charles J. F nley, rector
Planning and De v!
p ent Department
CJF:lr
c: Al Lucas, Public Service Company
Poul Poulsen, Colorado Department of Health
Tom Cvar, City of Pueblo
Frank Cash, City of Pueblo
Jim Munch, City of Pueblo
Tom Jagger, City of Pueblo
SOUTHSIDE LANDFILL PROPERTY
PUEBLO, COLORADO
N
(AG ti ✓E' LANDFILL)
CITY OWNED
INf(IAL PkGJECT AREA!" PROPERTY BOUNDARY
(361* ACRES)
8HREDOER ) /
BLDG
WEST AREA. 11 '
r� � SUBSEQUENT
(CLOSED L ANDF I L L) \\ PROJECT a 1
AREA
H
SUBSEQUENT i
n APPROX I - - PROJECT I lU ,
BOUNDARY AREA �J(
I l�
1�
UELCO
It
t METH E PLANT
TO HWY 78
So 11 - 1 90
4 -H -g!
APPROX. SCALE° 1 +800'
ExH��lr 'G«
LAND DESCRIPTION OF METHANE GAS GATHERING SYSTEM AREA AT
PUEBLO SOUTH LANDFILL:
A tract of land in the NWi, SW'/4 and SE %, of Section 18 Township 21 South, Range 65 West
of the 6th P.M. and in the NE14 and SEi of Section 13, Township 21 South, Range 66 West
of the 6th P.M. in Pueblo County, Colorado, and being more particularly described as
follows:
Beginning at the Ci corner of said Section 18; thence Northerly, along the East line of the
said NW / of Section 18, to the Northeast corner of the S1 of the said NWi; thence Wester-
ly, along the North line of the said S% of the NW /, to the West line of the said NW%, of
Section 18; thence Southerly along said West line, to the Northeast corner of the South
335 feet of the said NE k4 of Section 13; thence Westerly, along the North line of said South
335 feet, a distance of 600 feet; thence Southerly, along the West line of the East 600 feet
of the said NE o, to the North line of the said SE%' of Section 13; thence Southerly, along
the West line of the East 600 feet of said SE a, to the Southwest cornerof the North 250 feet
of the East 600 feet of the SE4 of the SE /4 of said Section 13; thence Easterly, along the
South line of said North 250 feet, to the West line of the SW% of said Section 18; thence
Easterly, along the South line of the North 250 feet of the S% of said SW k", to the West line
of an existing roadway; thence Northeasterly, along said West line, to the North line of the
said S% of the SW / of Section 18; thence Easterly, along said North line, a distance of
150 feet; thence Northerly, along a line parallel to the East line of the said SW /4 of
Section 18, to the South line of the North 1000 feet of said SW a; thence Easterly, along the
South line of said North 1000 feet, to the said East line of the SW %'; thence Easterly, along
the South line of the North 1000 feet of the SEi of Section 18, to the Southeast corner of
the West 500 feet of the said North 1000 feet of the SE34; thence Northerly, along the East
line of said West 500 feet, to the North line of said SE 3, thence Westerly, along said North
line, to the Point of Beginning.
Containing 196 acres, more or less.
Prepared by: K L H ENGINEERING CONSULTANTS, INC.
111 East 5th Street
Pueblo, Colorado
April 15, 1991
80 117 90
EXHIBIT "C -1"
INITIAL PROJECT AREA AND SUBSEQUENT
PROJECT AREAS I AND II (COMBINED)
A tract of land located in the SE% of the SW3 , Section 18, Township 21
South, Range 65 West of the 6th P.M., being more particularly described
as follows:
Considering the South line of the said SW% of Section 18 to bear
S.88 °- 45' -33 "E. and all bearings contained herein being relative thereto.
Commencing at the Southwest corner of said Section 18; thence
N.74 23 39 "E., a distance of 1408.09 feet to the True Point of Beginning;
thence N.09 24 1 - 55 "E., a distance of 422.00 feet; thence S.80 35 05 11 E.,
a distance of 360.00 feet; thence S.09 °- 24'- SS "W., a distance of 422.00
feet; thence N.80!- 35 1 - 05 "W., a distance of 360.00 feet to the Point of
Beginning.
Containing 3.488 acres.
_ EXHIBIT "C -2" _
METHANE PLANT
PPR— `23 -90 MON 16:39 COLO DEPT OF HEALTH MAIN
f
P. 02
STATE OF COLO
COLORADO DEPARTMENT OF HEALTH
4210 East 11th Avenue
Oenver, Colorado $0220.3716
Phone {303) 320.4333
releram:
x303) 322.906 (Main evilding/denvv)
i3o31 320.1329I1 Place/ Denver)
1303) 240.7196 lunetion Req)onjl Off(eel
. J 7 �♦
April 18, 1990
Louis Quigley
One City Hall
Pueblo, Colorado 81003
ROY Romer
G)Yetnor
Thomas ,H. Vernon, M.I
Executive Director
Subject: Southside Landfill, re-disposal of waste produced in drilling
through trash
Dear Mr. Quigley:
At your request, I am sending you a letter to confirm and document our
telephone conversation of March 19, 1990. Representatives of Fuelco and the
City of Pueblo expressed concern regarding the responsibility and liability
incurred by drilling through refuse filled areas of the Southside Landfill in
the placement of methane recovery wells. In response to those concerns, I am
providing a summary of the recommendations and policies used by the Hazardous
Materials and Waste Management Division in previous situations.
1. Materials produced as drilling residues or cuttings (herein after referred
collectively as drilling wastes) are considered to be newly generated and must
be disposed of properly by current standards.
Drilling wastes produced without detection of anomalous gases or vapors, can
be visually examined. If they are identified as normal refuse, they can be
disposed of as solid waste. Liquids, sludges, and any drilling waste that is
a suspect industrial or hazardous material (e.g., materials presenting solvent
odors) should be segregate, containerized and tested. If the material
determined by laboratory analyses to be hazardous waste, then it must be
disposed of as hazardous waste.
If organic vapors, other than methane and normal, products of putrification,
are detected by field monitoring equipment during well implacement, the
drilling wastes from that well location should be segregated, containerized
and tested. The well location should also be permanently recorded for future
needs. If the material In the drilling waste is chemically identified as
hazardous waste, then it must be disposed of as hazardous waste.
t .�L. i 1 wv
EXHIBIT "D"
AIPR- -23 -90 MON
W
16:Z9 COLD DEPT OF HEALTH M A I N
1-1 11
Southside Landfill
Quigley
Page 2
P.03
2. During the well implacement process, the identification of hazardous
materials buried in the landfill, that today would require disposal as
hazardous wastes, does not by itself require the remediation of the landfill
including removal of suspect waste.
The only time that remediation would become an issue would be if proof of
ground water contamination was developed during the boring; then, remediation
in some form would be necessary. Of course, identification of ground water
contamination attributable to a landfill would trigger the need for
remediation whether or not methane recovery is being attempted at the site.
3. The health and safety of the personnel on or near the drill rig is of
primary importance. A health and safety plan with proper field monitoring
f equipment and a routine process for monitoring the bore holes and cuttings
should be in effect during all well implacements.
I hope that this summary clarifies the thinking that this Division has used in
resolving the issue of liability and waste re- generation or disposal for
similar sites and activities in the past. If I can be of further assistance,
feel free to contact me again.
Si irely,
I CC
ey'T c oa C
Solid Waste and Incident Me
Hazardous Materials and V
ement Section
Management Division
CC FuelCo
Poul Poulsen
File
Reception #: 1123361 Date: 05/28/1996 Time: 258 Book: 2894 Page: 831 Chris C. Munoz
Inst: B S R Fee: 20.00 D Fee: 0.00 SC: 1.00 Pg: 1 of 4 Pueblo Co.C1k.&Rec.
BILL OF SALE
THIS BILL OF SALE is executed and delivered as of the first day of June, 1994, by
Fuel Resources Development Co., a Colorado corporation ( "Fuelco "), to the City of Pueblo, a
municipal corporation ( "Pueblo ").
WHEREAS, Pueblo owns certain property known as the Pueblo Solid Waste Landfill
located in Pueblo County, Colorado (the "Landfill "); and
WHEREAS, Fuelco has constructed and installed and owns that certain Gas Methane
Recovery System and Facility located on, over and under a portion of the Landfill, as more
particularly described in Exhibit A attached hereto (the "System "); and
WHEREAS, pursuant to paragraph 15 of that certain Escrow Agreement dated as of June
1, 1994 (the "Escrow Agreement "), by and among Fuelco, Pueblo and Pueblo Bank & Trust
Company, such parties agreed to execute any necessary transfer documents evidencing Fuelco's
conveyance of the System to Pueblo without cost to Pueblo; and
WHEREAS, Fuelco represents and warrants that Fuelco has no knowledge whatsoever
of any circumstance, release or threatened release arising from, or attributable in whole or in
part to, the System or the System's prior operation (i) which is or reasonably may be subject to
an order or enforcement action of any state or federal agency, or (ii) which may impose upon
the owner or operator of the System any duties of any kind arising or which could arise under
the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.0 Section
9601 et sec .), the Superfund Amendments and Reauthorization Act, the Resource Conservation
and Recovery Act, the Toxic Substances Control Act, the Clean Water Act, the Clean Air Act,
the Safe Drinking Water Act, the Endangered Species Act, or Colorado state laws relating to
hazardous waste or protection of the environment, and implementing regulations; however,
Pueblo understands and acknowledges that the foregoing statement by Fuelco is not based upon,
and Fuelco has not undertaken, any investigation or testing of the System whatsoever;
NOW, THEREFORE, for good and valuable consideration and for the mutual covenants
and agreements set forth in the Escrow Agreement, the receipt and sufficiency of which is
hereby acknowledged, Fuelco does hereby grant, bargain, sell, transfer, assign and convey unto
Pueblo forever all of its right, title and interest in and to the System, and warrants title to the
same, free and clear of all debts, mortgages and encumbrances, subject to the following
covenants and conditions:
1. As partial consideration for this Assignment, and in the absence of which Fuelco
would not have executed and delivered this instrument to the City, it is agreed
and understood that the City shall assume all responsibility and liability for
Book: 2894 Page: 832 Chris C. Munoz
Page: 2 of 4 Pueblo Co.C1k.&Rec.
owning, operating and maintaining the System in accordance with all applicable
federal, state and local statutes, rules or regulations, from and after the date of
this Assignment;provided, however, that Fuelco shall remain responsible for those
liabilities asserted against Fuelco prior to the date hereof as a result of Fuelco's
ownership, operation or maintenance of the System.
2. THE SYSTEM IS CONVEYED "WHERE IS, AS IS" AND WITHOUT
WARRANTY BY FUELCO OF ANY KIND, EXPRESS OR IMPLIED.
SPECIFICALLY, AND WITHOUT LIMITATION, FUELCO DOES NOT, IN
ANY WAY, WARRANT TO THE CITY THE QUALITY OR CONDITION OF
THE SYSTEM, OR ITS FITNESS FOR A PARTICULAR USE OR PURPOSE,
OR ITS MERCHANTABILITY.
3. Fuelco shall pay all taxes assessed on, based on, or attributable to the System that
accrued on or before the date of this Bill of Sale. Upon execution of this Bill of
Sale, a true copy shall be promptly filed with the Pueblo County Assessor in
order that the System may be exempted from property taxation pursuant to
Section 39 -3 -105, C.R.S. and taxes abated effective the date of transfer pursuant
to Section 39 -3 -130, C.R.S.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
-2-
Book: 2894 Page: 833 Chris C. Munoz
Page: 3 of 4 Pueblo Co.Clk. &Rec.
IN WITNESS WHEREOF, Fuelco has caused this Bill of Sale to be duly executed as of
the date first above written, and Pueblo has caused this Bill of Sale to be duly accepted, as
indicated by its execution below.
CITY AND COUNTY OF DENVER
ss.
)
FUEL RESOURCES DEVELOPMENT
CO.
B , ,,��
y ,-
Vice President
On the day of D e C e , 1994, personally appeared before me
n , e j- p cz h and V on Q l r the signers o . the above
instrgmed mho duly acknowledged to me that they executed the same behalf of Fuel
ResouxGas IJi ppment Co.
�VIy- nisslon hxpires: �YGo�e :tibi x, 15
s�U u
401a ACCEPTED AS OF
TI' V'TYAT FIRST ABOVE WRITTEN.
CITY OF PUEBLO
By
Oesi �ent the City Council
STATE OF COLORADO )
ss.
COUNTY OF PUEBLO )
O the IA-4- of 1994, personally appeared before me
the President o e City Council, o duly acknowledged to me
e exec ed foregoing Bill of Sale :6ta ehalf of the City of Pueblo.
J. •'-L c it 1
1 O1Tll 1S5ikYo i reS 61750 -48716 27121
PV
e o .
Book: 2894 Page: 834 Chris C. Munoz
Page: 4 of 4 Pueblo Co.Clk. &Rec.
EXHIBIT A
The Property consists of that certain Gas Methane Recovery System and Facility located
on, under and over the following parcel of the Pueblo Solid Waste Landfill in Pueblo County,
Colorado:
That parcel of land located at the S'h of the NW' /a, the N'h of the S' /2, and the
S' /2 of the SW 1 /4, all in Section 18, Township 21 South, Range 65 West of the 6th
P.M.; and a portion of the E' /2 of the E' /2 of Section 13, Township 21 South,
Range 66 West of the 6th P.M. being the East 600 feet of the South 2,975 feet
of the said Section 13; Pueblo County, Colorado, containing approximately 361
acres, excepting existing roads and rights -of -way and subject to easements,
restrictions, reservations and rights -of -way of record;
EXCEPT the following approximate 3.488 acres:
A tract of land located in the SE 1 /4 of the SW 1 /4, Section 18, Township 21 South,
Range 65 West of the 6th P.M., being more particularly described as follows:
Considering the South line of the said SW' /4 of Section 18 to bear 5.88 ° -45'-
33 "E. and all bearings contained herein being relative thereto.
Commencing at the Southwest corner of said Section 18; thence N.74 °- 23'- 39 "E.,
a distance of 1408.09 feet to the True Point of Beginning; thence N.09 ° -24'-
55"E., a distance of 422.00 feet; thence S.80 °- 35'- 05 "E., a distance of 360.00
feet; thence S.09 °- 24'- 55 "W., a distance of 422.00 feet; thence N.80 ° -35'-
05"W., a distance of 360.00 feet to the Point of Beginning.
61750 -48716 27121