ITC Ind Dev-New Trk 03/01/03
Form Approved, AVP-Law
THIS
AGREEMENT is made and entered into as of the 27th day of May, 2005,
by and between UNION PACIFIC RAILROAD COMPANY , a Delaware
corporation, to be addressed at 1400 Douglas Street, Omaha, NE
68179 (hereinafter the “Railroad”), and CXT,
INC., a Delaware corporation, to be addressed at 2420 North
Pioneer Lane, Spokane, WA 99216 (hereinafter the
“Industry”).
The Industry desires the
construction, maintenance and operation of a 5,135-foot Track A,
4,866-foot Track B, 647-foot Track C and 1,245-foot Track D
(hereinafter “Track”) at or near Milepost 146.0,
Kearney Subdivision, in Grand Island, Buffalo County, Nebraska, as
shown on the attached drawing dated February 11, 2005, marked
Exhibit A , hereto attached and hereby made a part
hereof.
NOW,
THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO
AS FOLLOWS:
Article 1. RELATED AGREEMENT .
This
Agreement is made pursuant to the terms and conditions contained in
the Agreement dated January 21, 2005, between the Railroad and
Industry (the “CXT Tie Agreement”).
Article 2. TRACK IDENTIFICATION MARKERS .
For the
purpose of this Agreement, the following segments of the Track
shall be identified as follows:
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Engineering
Station 0+00 -
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the initial
switch connection or sometimes referred to as the point of
switch.
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Engineering
Station 1 +42 -
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the initial
13—foot clearance point of the track. It is the point on the
track where a rail car either being moved or stored on the track
will not interfere with the movement of other rail cars on adjacent
main, branch or lead trackage owned by the Railroad.
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Engineering
Station 51+35 -
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the end of
Track A.
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Engineering
Station 0+00 -
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the initial
switch connection.
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Engineering
Station 1+36-
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the initial
13-foot clearance point of the track.
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Engineering
Station 6+47 -
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the end of
Track C.
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Article 3. PORTIONS OF TRACK TO BE CONSTRUCTED BY
RAILROAD .
The
Railroad will construct all track depicted on Exhibit A
as “Proposed R.R. Owned Track.”
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ITC Ind Dev-New Trk 03/01/03
Form Approved, AVP-Law
Article 4. PORTIONS OF TRACK TO BE CONSTRUCTED BY
INDUSTRY .
A. The
Industry, at its own expense and subject to the prior approval of
the Railroad, will perform all grading and install all necessary
drainage facilities required in connection with the construction of
the Track to the standards and satisfaction of the Railroad, and
arrange to modify any overhead and/or underground utilities to meet
Railroad specifications.
B. The
Industry, at its own expense, will construct all track depicted on
Exhibit A as “Proposed Ind. Owned
Trackage.”
Article 5. RIGHT-OF-WAY AND PRIVILEGE .
The
Industry shall procure any needed right-of-way, public authority or
permission for construction, maintenance and operation of the Track
outside the limits of the Railroad’s right-of-way. The
Industry shall pay any fees or costs imposed by any public
authority or person for the privilege of constructing, maintaining
and operating the Track.
Article 6. GRANT OF RIGHT; USE AND OPERATION OF THE
TRACK .
A. During
the term hereof and subject to the terms and conditions set forth
in this Agreement, Railroad hereby grants to Industry the right, at
Industry’s sole cost and responsibility, to construct, own,
keep, maintain, repair and use Industry’s private section of
Track where located on and along Railroad’s
right-of-way.
B. The
Railroad shall operate the Track subject to any applicable tariffs
or rail transportation contracts and the terms of this Agreement,
but the Railroad shall not be obligated to operate or maintain the
Track (and the Industry shall not have any claim against the
Railroad) if the Railroad is prevented or hindered from doing so by
the Industry’s breach or by acts of God, public authority,
strikes, riots, labor disputes, or other cause beyond its control.
The Railroad shall have the right to use the Track when not to the
detriment of the Industry.
C. The
Industry shall bear the cost of any modifications to the
Railroad’s tracks, structures and communication facilities,
other than track changes connected with the initial switch
connection, required by the construction, reconstruction or
operation of the Track.
D. The
use and operation of the Track shall also be in accordance with the
terms and conditions set forth in Exhibit B, hereto
attached and hereby made a part hereof.
Article 7. OWNERSHIP OF THE TRACK .
A. The
Railroad shall own the portion of Track A from the point of switch
to the 13-foot clearance point and the portion of Track C from the
point of switch to the 13-foot clearance point (hereinafter
“Railroad-owned Track”).
B. The
Industry shall own the portion of Track A from the 13-foot
clearance point to the end of the track, all of Track B, the
portion of Track C from the 13-foot clearance point to the end of
the track, and all of Track D (hereinafter “Industry-owned
Track”).
Article 8. MAINTENANCE OF THE TRACK STRUCTURE (RAIL, TIES,
BALLAST, OTHER TRACK MATERIAL) .
A. The
Railroad, at its expense, shall maintain the track structure for
the portion of Railroad-owned Track.
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ITC Ind Dev-New Trk 03/01/03
Form Approved, AVP-Law
B. The
Industry, at its expense, shall maintain the track structure for
the portion of Industry-owned Track.
Article 9. MAINTENANCE OF RIGHT-OF-WAY AND TRACK
APPURTENANCES .
A. The
Railroad, at its expense, shall maintain the right-of-way and track
appurtenances for the portion of Railroad-owned Track.
B. The
Industry, at its expense, shall perform the following maintenance
of the right- of-way and track appurtenances for the portion of
Industry-owned Track:
1. Remove snow, ice, sand and other
substances and maintain drainage and grading as needed to permit
safe operation over the Track.
2. Maintain all appurtenances to the
Track (other than an automatic signal system), including without
limitation, gates, fences, bridges, undertrack unloading pits,
loading or unloading devices and warning signs above, below or
beside the Track.
Article 10. INDUSTRY TO GIVE NOTICE; FLAGGING
.
The
Industry shall comply with the flagging provisions contained in
Section 1(j) of Exhibit B prior to entering
Railroad’s right-of-way for the purpose of performing any
construction or maintenance of the Track as set forth in this
Agreement.
Article 11. CONSTRUCTION, MAINTENANCE AND REPAIRS BY
INDUSTRY TO CONFORM TO RAILROAD STANDARDS .
A. Track
construction, maintenance and repair work performed by the Industry
shall conform to the Railroad’s standards. If, in the
judgment of the Railroad, any portion of the Track is
non-conforming and/or unsafe for railroad operations, the Railroad
shall not be obligated to operate over the Track.
B. The
Railroad, at the Industry’s expense, shall have the right,
but not be required, to make repairs on the Industry-owned Track
when requested by the Industry or when necessary to operate the
Track safely.
Article 12. NON-DISCLOSURE; CONFIDENTIALITY
.
Except
to the extent that disclosure of information contained in this
Agreement is required by law, the contents of this Agreement shall
not be disclosed or released by any party without the written
consent of all other parties to this Agreement.
This
Agreement shall take effect as of the date of this Agreement and
shall continue in full force and effect until terminated as herein
provided.
Article 14. CONSENT OF THE RAILROAD TO CERTAIN FACILITIES
OR OPERATIONS .
The
Railroad hereby consents to the construction, maintenance and
operation by the Industry of three private road crossings as shown
on Exhibit A ; subject to the terms, provisions and
conditions set forth in this Agreement and to any prior regulatory
approval that may be needed.
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ITC Ind Dev-New Trk 03/01/03
Form Approved, AVP-Law
The
Industry shall, at its sole cost and expense, procure and maintain
during the term of this Agreement insurance coverage as set forth
in Exhibit C, attached hereto and by this reference
incorporated herein.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in duplicate as of the date first herein
written.
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UNION PACIFIC
RAILROAD COMPANY
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By.
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/s/ Steven J.
McLaws
General
Director — Industrial Development
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Witness:
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CXT,
INC.
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By
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/s/ Stan L.
Hasselbusch
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Printed Name
Stan L. Hassellbusch
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Title
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CEO
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The terms of the CXT Tie Agreement shall prevail over any
conflicting terms herein, e.g. Industry’s right to remove its
property would be governed by Section 2.9 of the Tie Agreement
and not Section 7 of Exhibit B hereto.
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ITC Ind Dev-New
Trk 03/01/03
Form Approved, AVP-Law
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EXHIBIT B
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(a)
Clearances/Impairments . The Industry shall not permit or
maintain any building, platform, fence, gate, vehicle, or other
structure, obstruction or material of any kind, closer to the Track
then the standard clearances of the Railroad without the prior
written consent of the Railroad. The standard clearances of the
Railroad are (i) horizontally , nine (9) feet
from the centerline of the Track, and (ii) vertically ,
twenty-three (23) feet above the top of the rail of the Track. For
any portion of the Track that is curved, the standard horizontal
clearance shall be increased one and one-half inches for each
degree of curvature. All doors, windows and gates shall be of the
sliding type or open away from the Track if opening them toward the
Track would impair clearances. Any moveable appliance, including,
but not limited to, dock plates and loading or unloading spouts or
equipment, that impairs the standard clearances only when in use,
shall be securely stored or fastened by the Industry when not in
use so as to not impair such clearances. If greater clearances are
required by the National Electrical Safety Code or by statute,
regulation or other competent public authority, the Industry shall
comply therewith and shall obtain any necessary public authority
and Railroad consent to impair clearances before creating an
impairment. Any structure, material or other obstruction (whether
in use or not) which is closer to the Track than the
Railroad’s standard clearances or applicable public
authority, whichever distance is greater, shall be considered an
impairment, whether or not consented to or permitted by the
Railroad or public authority.
(b) Facilities . The
Industry shall not construct, locate, maintain or permit the
construction or erection of any pits, loadout facilities,
buildings, private crossings, beams, pipes, wires, or other
obstructions or installations of any kind or character (hereinafter
“Facilities”) over or under the Track without the prior
written consent of the Railroad.
(c) Walkways . The
Industry, at its expense, shall provide and maintain a Clear and
safe pathway for Railroad employees along both sides of the Track
beyond the clearance point. If walkways are required by statute or
regulation, the Industry, at its expense, shall ensure that
walkways are built and maintained to conform with such statute or
regulation.
(d) Industry to Train and
Oversee Employees . The Industry shall have a non-delegable
duty and responsibility to train and oversee its employees and
agents as to proper and safe working practices while performing any
work in connection with this Agreement, or any work associated with
the Railroad serving the Industry over the Track.
(e) Intraplant Switching
. The Industry shall not perform, permit or cause intraplant
switching without the prior written consent of the Railroad.
Intraplant switching means the movement of rail cars on the Track
by the Industry by any method and includes the Industry’s
capacity to move rail cars, whether before, during or after any
such movement.
(f) Standards . The
Industry shall comply with all applicable ordinances, regulations,
statutes, rules, decisions and orders including, but not limited
to, safety, zoning, air and water quality, noise, hazardous
substances and hazardous wastes (hereinafter
“Standards”) issued by any federal, state or local
governmental body or agency (hereinafter “Authority”).
If the Industry is not in full compliance with any Standards issued
by any authorized Authority, the Railroad, after notifying the
Industry of its noncompliance and the Industry’s failure
within twenty days of such notice to correct such noncompliance,
may elect to take whatever action is necessary to bring the Track
and any Railroad property into compliance with such Standards;
PROVIDED, HOWEVER, that if Industry’s failure to comply with
Standards interferes with, obstructs or endangers Railroad mainline
or yard operations in any way, Railroad may initiate compliance
action immediately. The Industry shall reimburse the Railroad for
all costs (including, but not limited to, consulting, engineering,
clean-up, disposal, legal costs and attorneys’ fees, fines
and penalties) incurred by the Railroad in complying with, abating
a violation of, or defending any claim of violation of such
Standards. A waiver by the Railroad of the breach by the Industry
of any covenant or condition of this Agreement shall not impair the
right of the Railroad to avail itself of any remedy for any
subsequent breach thereof.
(g) Railcars Containing
Hazardous Materials . If the Industry uses the Track for the
purpose of shipping, receiving or storing railcars containing
hazardous materials, as defined by the Department of Transportation
(the “DOT”). The Industry will comply with and abide by
all DOT regulations as set out in 49 Code of Federal Regulations,
Parts 100-199, inclusive, as amended from time to time, and
provisions contained in applicable Circular’s of the Bureau
of Explosives, Association of American Railroads, including any and
all amendments and supplements thereto. The term
“Standards” defined in Section 1 (f) shall
include (but is not limited to) regulations referenced in this
subsection (g).
(h) Telecommunications and
Fiber Optic Cable Systems . Telecommunications and Fiber optic
cable systems may be buried on the Railroad’s property.
Industry shall telephone the Railroad during normal business hours
(7:00 a.m. to 9:00 p.m., Central Time, Monday through Friday,
except holidays) at 1-800-336-9193 (also a 24-hour, 7-day number
for emergency calls) to determine if telecommunications or fiber
optic cable are buried anywhere on the Railroad’s premises to
be used by the Industry. If it is, Industry will telephone the
telecommunication company(ies) involved, arrange for a cable
locator, and make arrangements for relocation or other protection
of the cable and will commence no work on Railroad’s property
until all such protection or relocation has been
accomplished.
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ITC Ind Dev-New
Trk 03/01/03
Form Approved, AVP-Law
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EXHIBIT B
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(i) Fire Precautions .
Industry shall not permit, place, pile, store, or stack any
flammable material within ten (10) feet of centerline of the
Track. Industry shall remove or otherwise control vegetation
adjacent to the Track so that it does not constitute a fire hazard.
Industry shall ensure that suitable firefighting equipment is
available and in working order.
(j) Notice and Flagging
. Prior to entering Railroad’s right of way or other property
for the purpose of performing any maintenance, repair, or
reconstruction of the Track as set forth in this Agreement, and/or
constructing additional track segments connecting to the Track, the
Industry and/or its contractors are required to first notify the
Railroad’s local Manager of Track Maintenance at least ten
(10) working days in advance of such work so that the Railroad
can determine if flagging and/or other protection is needed. If
Railroad deems that flagging and/or other protection is needed, no
work of any kind shall be performed, and no person, equipment,
machinery, tool(s), material(s), vehicles(s), or thing(s) shall be
located, operated, placed, or stored within 25 feet of the Track or
any other track of Railroad at any time, for any reason, unless and
until a Railroad flagman is provided to watch for trains. If
flagging or other special protective or safety measures are
performed by the Railroad, such services will be provided at
Industry’s expense with the understanding that if the
Railroad provides any flagging or other services, the Industry
shall not be relieved of any of its responsibilities or
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