ENCROACHMENT AGREEMENT (Farmland O Connell Road)

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STATE OF KANSAS Tract 28103, 28112, 28124, L3031 & L4218 COUNTY OF DOUGLAS Line: E ENCROACHMENT AGREEMENT (Farmland Development @ O Connell Road) THIS AGREEMENT, entered into by and between SOUTHERN STAR CENTRAL GAS PIPELINE, INC., (formerly Williams Gas Pipelines Central, Inc., Williams Natural Gas Company, Northwest Central Pipeline Corporation and Cities Service Gas Company), a Delaware corporation, whose mailing address is P.O. Box 20010, Owensboro, Kentucky 42304, hereinafter referred to as "Company", and City of Lawrence whose mailing address is 6 E 6 th Street, Lawrence, KS 66044, hereinafter referred to as "City". WHEREAS, Company is the owner of one (1) twenty-six inch (26 ) natural gas pipeline (Line E) and easement therefore across the following land to wit: The Southwest Quarter (SW1/4) and the Northwest Quarter (NW1/4)of Section 4, Township 13 South, Range 20 East, and the Northeast Quarter (NE1/4) and the Southeast Quarter (SE1/4) of Section 5, Township 13 South, Range 20 East all in County of Douglas and State of Kansas. by virtue of a certain valid and subsisting Right of Way contract granted by Charles E. Martin and Goldie E. Martin, his wife and Robert W. Pickett and Betty Rose Pickett, his wife and Grace L. Happy, a widow, to Cities Service Gas Company, dated June 19, 1963, recorded in Volume 228, page 192 at Register of Deeds Office, Douglas County,

Kansas and Agreement and Partial Release granted Charles A. Mills, Janet I. Mills, John B. Mills and Donna J. Mills to Cities Service Gas Company, dated April 18, 1973, recorded in Book 292, Page 752, Register of Deeds Office, Douglas County, Kansas and by a Right of Way contract granted by The Cooperative Farm Chemicals Association to Cities Service Gas Company, dated June 27, 1963, recorded in Volume 228 page 399 at Register of Deeds Office, Douglas County, Kansas and by virtue of a Meter and Regulator Lease granted by Chas A. Schaake and Isabelle V. Schaake, his wife, dated May 6, 1946, recorded in Volume 156 page 211 at Register of Deeds Office, Douglas County, Kansas and by virtue of an Easement agreement granted by Farmland Industries, Inc., dated September 11, 1995, recorded in Book 541 page 1392 at Register of Deeds Office, Douglas County, Kansas and by virtue of a Miscellaneous Lease granted by Charles E. Martin, Grace L. Happy, a widow, Robert W. Pickett and Betty Rose Pickett, his wife, to Cities Service Gas Company, dated October 12, 1966, recorded in Book 247 page 348 at Register of Deeds Office, Douglas County, Kansas and by virtue of a Condemnation Petition granted by the District Court of Douglas County, Kansas to Cities Service Gas Company, dated July 10, 1963.. wit: WHEREAS, City is in possession of and owns the following described land to A tract of land in Section 4 and the East half of the Southeast Quarter of Section 5, A portion of said tract previously recorded in Book 1066. Page 2927, All in Township 13 South, Range 20 East of the 6 th P.M. City of Lawrence, Douglas County, State of Kansas. WHEREAS, City has requested Company s permission to encroach on a portion of Company s easements by construction of the following; Proposed 30 RCP Storm Sewer at station 115/1250+50 and stationing 115/1259+65; Proposed North/South O Connell Road at stationing 115/1251+06 115/1253+94; Proposed Sidewalk at stationing 115/1251+06 115/1253+94; Proposed East/West Farmland Road and ROW at stationing 115/1259+55 115/1260+55; Proposed 8 Sanitary Sewer at stationing 115/1259+45; proposed 8 Water Line at stationing 115/1260+45; and Proposed 19 th Street Connection and ROW at stationing 115/1276+15 115/1277+15 on and across Company s pipeline easement and, WHEREAS, under the terms of this agreement, Company is willing to permit said encroachment and, NOW, THEREFORE, in consideration of the premises and the mutual promises of the parties, Company and City agree as follows: 1. Company is willing to accommodate the encroachment of the following; the proposed 30 RCP Storm Sewer line crosses Line E at an approximately 90 angle. The drawings have been updated to prevent any conflict. (Farmland Roads Project Sheet No. 24 of 172, A 2.4 & No. 14 of 172, A 2.3); the proposed North/South O Connell Road running

north from K10 Highway encroaches on Southern Star s right-of-way for approximately 250 feet. The actual road does not cross the pipeline but is located on Southern Star s right-of-way. (Farmland Roads Project Sheet No. 11 of 193, A 2..2); the proposed six foot (6 ) sidewalk being constructed west of O Connell Road encroaches on Southern Star s right-of-way for approximately 250 feet. The actual sidewalk does not cross the pipeline. (Farmland Roads Project Sheet No. 26 of 193, A 2.5); the proposed East/West Farmland Road running west from the East Hills Business Park crosses Line E at an approximately 90 angle, as recommended by Southern Star s Land Use Development and Rightof-Way Handbook (LUDRH). The API 1102 calculations show that it is safe to cross the pipeline with (5 ) 5 feet depth of cover. (Farmland Roads Project Sheet No. 14 of 193, A 2.3) as described in drawing STD- ENC-X-RDSC, which is attached hereto and made a part hereof and shown on Exhibit A ; the proposed 8 water line crossed Line E at an approximate 90 angle. The drawings have been updated to prevent any conflict. (Farmland Roads Project Sheet No. 34 of 193, A 2.6); the proposed 19 th Street connection is an extension of the proposed road which runs north from Highway 10, which then turns west to terminate at 19 th Street. This proposed road crosses Line E at an approximately 90 angle, as recommended in the LUDRH. The developer has stated that the 19 th Street connection over the Southern Star Central Gas Pipeline will not be constructed at this time nor in the near future, and they will apply for an additional encroachment agreement in the future. (Farmland Roads Project Sheet No. 124 of 193, A 2.9) Final Development Plan prepared by Bartlett & West, 544 Columbia, Lawrence, KS 66049, dated February 6, 2013. Which is attached hereto and made a part hereof and shown on EXHIBIT B. 2. City agrees that existing cover will be maintained on pipeline right-ofway. 3. No deep rooted trees shall be allowed in Company s easement. 4. The underground utilities, (30 RCP Storm Sewer, 8 Sanitary Sewer & Proposed 8 Water Line) crossing Company s pipeline shall maintain a vertical clearance of 2 feet (2 ) as described in drawing STD-ENC-PX- FP, which is attached hereto and made a part hereof and shown on Exhibit C. Utilities parallel to the pipeline shall be completely outside of the pipeline easement 5. City agrees that all water lines must be ductile iron or steel pipe which is protected from SSCGP cathodic protection system, or plastic pipe installed in a minimum of schedule 40 steel conduit of the full width of the right-of-way. No piping connections are allowed within (5 ) five feet of the pipeline.

6. City agrees to inform Company at least 48 hours in advance of construction of said encroachments by contacting the Company s Tonganoxie, Kansas Office at (913)-845-5001. 7. During construction of said encroachments, rubber tired equipment up to a maximum axle load of 87,000 lbs. can safely cross the existing pipeline. Tracked equipment similar to a Cat D8 is also allowed with an approximate depth of 4.5 feet. Equipment larger than these scenarios or a crossing with less than 4.5 feet of cover will need to be evaluated on a case by case basis prior to allowing the equipment to cross the existing pipeline. All pipeline crossing with equipment will be at a 90 angle at a location designated by Company s operations personnel. A Company representative will need to be on site prior to allowing any equipment crossing said pipeline. 8. In the event that during the exercise of its easement rights to construct, maintain and operate the pipeline and appurtenances, Company or its contractors destroy or damage the encroachments herein permitted, all such damages to said permitted items shall be the sole responsibility of the City, unless Company is negligent in such action. 9. City agrees to indemnify, save and hold Company, its parent and affiliates, and the employees, officers, directors and agents thereof, harmless from and against any loss, cost or expense incurred by Company, including without limitation losses resulting from claims for damages to property or injuries to or deaths of persons, judgments, court costs and attorneys fees which arise out of, or are claimed to have arisen out of the construction, maintenance or other operations of City, their contractors and subcontractors, on the Company easement, unless such loss, cost or expense is proximately caused by the sole negligence of Company, its contractors and/or subcontractors. 10. Prior to commencement of construction of the above reference work, City shall provide COMPANY a statement of self-insurance. 11. City warrants that it is the fee owner of record of the real property described herein and has the right, title and capacity to enter into this agreement. 12. The terms of this agreement shall constitute covenants running with the land and will be binding upon and inure to the benefit of the parties hereto, or their successors and assigns.

IN WITNESS WHEREOF, we hereunto set our hands and seals on the day and year indicated below our signatures. COMPANY: SOUTHERN STAR CENTRAL GAS PIPELINE, INC. Robert S. Bahnick, Vice-President and Chief Operations Officer Date: CITY: City of Lawrence Kansas David L. Corliss, City Manager Date:

CORPORATE ACKNOWLEDGEMENT STATE OF KENTUCKY COUNTY OF DAVIESS Before me, the undersigned, a Notary Public duly commissioned in and for the county and state aforesaid, on this day of, 2013, personally appeared Robert S. Bahnick, who being by me duly sworn, did say that he is the Vice President and Chief Operations Officer of Southern Star Central Gas Pipeline, Inc., a corporation, and that said instrument was signed on behalf of said corporation by authority of its Board of Directors, and said Robert S. Bahnick acknowledged said instrument to be the free act and deed of said corporation. In testimony whereof, I have hereunto set my hand and affixed my official seal at my office in said county and state the day and year last above written. Notary Public My Commission Expires, 20.

ACKNOWLEDGEMENT OF CITY STATE OF KANSAS COUNTY OF DOUGLAS Before me, the undersigned, a Notary Public duly commissioned in and for the county and state aforesaid, on this day of, 2013, personally appeared, David L. Corliss, City Manager, who being duly sworn, did say that they are the owners of said property. In testimony whereof, I have hereunto set my hand and affixed my official seal at my office in said county and state the day and year above written. Notary Public My Commission Expires:, 20.