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<br />NS File No. 1087136
<br />NCRR File No. o_h-034+0640
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<br />PIPELINE AGREEMENT
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<br />THIS AGREEMENT, made and entered into by and between NORTH CAROLINA
<br />RAILROAD COMPANY, a North Carolina corporation, hereinafter styled "Company"; and CITY OF
<br />MEBANE, a North Carolina government entity, hereinafter styled "Licensee' ;and NORFOLK
<br />SOUTHERN RAILWAY COMPANY, a Virginia corporation, hereinafter styled "NSR";
<br />WITNESSETH
<br />WHEREAS, Licensee proposes to install, maintain, operate and remove an 8 inch ductile
<br />iron gravity sewage pipeline, along and under the right of way or property and any tracks of Company,
<br />from Milepost H-034 plus 640, Valuation Station 1700+73, to Milepost H-034 plus 1,297, Valuation
<br />Station 1707-30 at or near Mebane, Orange County, North Carolina, to be located with any ancillary
<br />appurtenances as shown oil prints of Drawing marked Exhibit Al and A2, dated January 26, 2006,
<br />attached hereto and made a part hereof (hereinafter called "Facilities"); '
<br />WHEREAS, Company is willing to permit this proposed pipeline, but only upon the
<br />`following terms and conditions;
<br />NOW, THEREFORE, for and in consideration of the premises, payment of an initial fee
<br />by Licensee to NSR of TWO HUNDRED AND NO/100 DOLLARS ($200.Ofl), and also none-time non-
<br />refundable fee to Company of NINE THOUSAND FIVE HUNDRED FORTY NINE AND NO/100
<br />DOLLARS ($9549.00) and of the covenants hereinafter made, Company hereby permits and grants
<br />Licensee, insofar as Company has the right to do so, without warranty and subject to all encumbrances,
<br />covenants and easements to which Company's title. may be subject, the right to use and to occupy so much
<br />of Company's property as may be necessary for the Facilities, upon the following terms and conditions:
<br />1. Licensee will construct and maintain the Facilities, at its expense, in such a
<br />manner as will not interfere with the operations of Company or endanger persons or property of
<br />Company, and in accordance with (a) plans and specifications (if,any) shown on said prints} and any
<br />other specifications prescribed by Company, (b) applicable governmental regulations or laws, and (c)
<br />applicable specifications adopted by the American Railway Engineering Association when not in conflict
<br />with plans, specifications or regulations mentioned in (a) and (b) above. .
<br />2. Licensee hereby agrees to indesntufy and save harmless Company, its officers,
<br />agents and employees, from and against any and all.liabifity, claims, losses, damages, expenses (including
<br />attorney's fees) or costs for personal injuries (including death) and/or property damage to whomsoever or
<br />whatsoever occurring which arises in any manner from the installation, maintenance, operation, presence
<br />or removal or the failure to properly install, maintain, operate or remove the Facilities, unless such losses;
<br />damages or injuries shah be caused solely by the negligence of Company. The indemnity contained
<br />herein is intended to survive the termination of this Agreement.
<br />3. Licensee assumes all responsibility for any environmental obligations imposed
<br />under applicable laws, regulations or ordinances relating to the installation of the Facilities and/or to any
<br />contamination of any property, water, air or groundwater arising or resulting from Licensee's permitted
<br />operations or uses of Company's property pursuant to this Agreement. In addition, Licensee shall obtain
<br />any necessary permits to install the Facilities. Licensee agrees to indemnify and hold harmless Company
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