Airport Participation in Oil and Gas Development (2018)

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73 A. DEFINITIONS (1) “Authority, City, County, or Municipality” means (2) “Sublessee” means the party with whom the enters into a Sublease and shall include any vendor, contractor, tenant, consultant, engineer, architect, or other party to a contract with the . (3) “Contract” means the Lease, contract, purchase order, invitation for bid, or similar memorandum. (4) “Sublease” means the Oil and Gas Lease entered into by and between the and Sublessee. (5) “County” means (6) “K” means $1,000 and “M” means $1,000,000. B. GENERAL REQUIREMENTS (1) Sublessee shall, at its own expense, maintain in effect not less than the following coverages and limits of insurance, which Sublessee shall maintain with insurers, policy forms and deductibles as provided herein. ANY deviation from the requirements outlined below or expressly permitted herein requires the prior written approval of the Risk Manager of the , which approval shall not be unreasonably withheld. (2) All policies must be written through a licensed company authorized by the State Authority of Insurance to transact that class of insurance business in the state of (excluding policies written through Bermuda insurers), with a minimum rating of “A-” “VII” by A.M. Best Company. If the rating of any insurer should fall below this standard, Sublessee shall cause the policy to be replaced promptly by an insurer that satisfies the foregoing requirements or through self-insurance. (3) All policies shall designate the parties named in Paragraph 9 below as “Additional Insureds,” either by a “blanket additional insured” endorsement, or by specific endorsement. All policies shall waive the insurer’s right of subrogation against the , and other Additional Insured parties. (4) If any policy is in excess of a deductible or self-insured retention (SIR), the amount of such deductible or SIR must be clearly identified, and may not exceed one (1%) percent of Sublessee’s net worth. (5) All policies must be primary with respect to coverage provided for the under the Sublease. (6) All Liability policies, except Pollution & Professional, must be written on an “Occurrence Form.” However, both “Modified Occurrence” and “Claims-Made” Policies are acceptable, and Sublessee will not be in contractual default if its insurance is “Modified Occurrence” or “Claims Made.” If the Liability policy is Modified Occurrence or Claims-Made, the Retroactive Date must be on or before the contract date or the date of Sublessee’s first work that may give rise to a liability claim related to the Sublease or upon policy inception if an “Occurrence Form” policy was previously in effect. In the event the “Modified Occurrence” or “Claims-Made” policy is canceled, then the reserves the right to require Sublessee to secure an extended reporting period for each policy for three years at no cost to the . (7) All policies must be non-contributory with other coverage or self-insurance available to the Authority. (8) The Sublessee shall be responsible for and pay or cause to be paid, when due, all premiums, charges, costs and expenses relating to this insurance. (9) and Airport and their officers and directors shall be named as additional insured on the General Liability (including coverage for Products/Completed Operations), Automobile Liability, Umbrella Liability, Pollution Legal Liabil- ity, and Control of Well coverages. APPENDIX B Sample Insurance Requirements

74 (10) No policies shall contain exclusions specifically intended to preclude coverage for claims incurred on ACAA premises. (11) Notwithstanding anything to the contrary contained herein, to the extent that Sublessee’s insurance policies at any time do not satisfy any of the limits, coverages, requirements, restrictions, inclusions/exclusions or any other terms provided in this Exhibit (collectively, “Requirements”), Sublessee shall have the right to self-insure to satisfy such Require- ments so long as either Sublessee satisfies the net worth requirement set forth in Section F herein or Guarantor (as such term is defined in the Sublease) satisfies the requirements applicable to such Guarantor in Section F. However, if either Sublessee fails to satisfy the net worth requirement under Section F or such Guarantor fails to satisfy the requirements applicable to such Guarantor in Section F, then Sublessee shall maintain commercial insurance coverage to satisfy all of the Requirements unless and until either Sublessee once again satisfies the net worth requirement in Section F or such Guarantor once again satisfies the requirements applicable to such Guarantor in Section F. C. COVERAGE LIMITS (1) Workers’ Compensation Statutory Coverage Employer’s Liability Insurance $1 M/$1 M/$1 M (2) Commercial General Liability Limit per Occurrence $1 M Personal & Advertising Injury $2 M Policy Aggregate $2 M Products & Completed Operations Aggregate $2 M (a) Excess / Umbrella Liability policies must provide for defense costs. (b) All Liability policies shall include Contractual Liability covering the indemnification provisions of the Sublease, subject to the terms and conditions of the policies. (c) All Liability policies, including umbrella policies, shall cover loss caused by Sublessee’s subcontractors, independent contractors, suppliers or other parties providing goods or services in connection with the Sublease. (d) All Liability policies must contain a “severability of interests” provision. (e) All Liability policies must cover cross-suits between insureds. (f) If Sublessee’s operations involve excavation, grading, filling, backfilling, road or similar construction, no Liability policy may contain exclusions for hazards of explosion, collapse, or underground excavation. (g) Coverage for subsidence or earth movement will be self-insured to the extent not covered by Sublessee’s commercial insurance policies. (h) If Sublessee’s operations involve any construction, reconstruction, repair or similar work, no Liability policy may con- tain any exclusion for such work. (3) Business Automobile Liability Limit for each accident $ 1 M Coverage must apply to Sublessee’s vehicles (owned, non-owned, or hired) operating on the Authority’s site/location, or transporting Authority personnel or property off the Authority site. Auto pollution liability coverage is required on vehicles hauling hazardous cargo.

75 (4) Excess / Umbrella Liability Per Occurrence/Aggregate $100 M Coverage must apply in excess of all required primary casualty commercial limits. (5) Professional Liability Insurance $ 1 M Sublessee’s policy must cover the type of professional service Sublessee will provide in fulfilling its Sublease with the Authority. (6) Pollution Legal Liability Insurance $20 M Sublessee shall provide appropriate Pollution Liability or Environmental Impairment insurance. Sublessee’s policy must also include coverage for claims or losses associated with the installation, development and operation of a well or wells, including groundwater contamination, surface water contamination, personal injury, including toxic tort, medical monitoring, property damage, repair or replacement of water supplies, drinking water contamination, civil fines or penalties for non-compliance with applicable laws, and natural resource damages. The will be an additional named insured under this policy. (7) Control of Well $20 M per occurrence Sublessee’s policy must cover the cost of controlling a well that is out of control, underground blowouts, clean-up and con- tainment, deliberate well firing, re-drilling or restoration expenses, seepage and pollution damage as first party recovery for the Operator and related expenses, removal of wreck/debris, loss of equipment, experts and evacuation. Sublessee’s Policy must also cover all expenses to make the well safe and must have endorsements contingent rig coverage (sound well site), work-over wells producing wells, turnkey (credit) and unintentional error, delay or omission in well reporting. Control of Well Coverage will be broadened to cover: – Care Custody and Control coverage for up to $1 M per occurrence. – Extended Re-drill and Restoration coverage so as to broaden the covered perils for re-drilling. D. ADDITIONAL REQUIREMENTS (1) All employees, leased or co-employees, independent contractors, and employees of subcontractors and vendors, perform- ing work for the Authority, or entering upon Authority premises, must be covered by Workers’ Compensation, even if not required by law. (2) If Sublessee will utilize a crane/rigging operator or will hoist or move property of others in connection with the Sublease, Sublessee must have “care, custody & control” exclusion deleted from Sublessee’s Commercial General Liability policy, or provide Rigger’s Liability coverage at least equal to the highest replacement cost of materials to be hoisted or moved. (3) If Sublessee’s vehicles carry materials belonging to others in connection with the Sublease, Sublessee must carry Cargo Liability coverage, at least equal to the highest values of property to be carried on a single vehicle with terminal coverage at least equal to the highest value of property at one terminal, owned or controlled by Sublessee. (4) If Sublessee will store, warehouse, or otherwise have custody of property belonging to others in connection with the Sub- lease, Sublessee must have Warehousemen’s Liability, Bailee’s Customers’ Goods, Garage-Keeper’s Legal Liability, or equivalent coverage at least equal to the highest value of property in Sublessee’s custody. (5) If the Sublease calls for Sublessee to construct a structure, Sublessee must purchase and maintain “All-risk” Builders Risk insurance for the full completed value of the structure, including all changes and sufficient limit to fund full and immediate reconstruction under adverse conditions.

76 (6) If Sublessee transports materials, equipment, machinery or furnishings to, or store such property on, its construction site, Sublessee must carry an “All-risk” Installation Floater with coverage at least equal to the greatest concentration of value, (including the costs of transit, installation labor and testing). This policy shall cover the Authority’s interests as Loss Payee, so any loss will be adjusted with and made payable to the Authority as trustee for all insureds as their interest may appear. (7) If Sublessee uses rented equipment or tools on the ’s job site or premises, Sublessee must carry Rented Equip- ment coverage sufficient to repair or replace damaged equipment. E. CERTIFICATION OF INSURANCE (1) All of Sublessee’s insurance policies (as well as any vendor, contractor, tenant, consultant, engineer, architect, or other party to a contract with the Authority) shall contain a provision that written notice shall be given to the Authority, at least thirty (30) days prior to cancellation, except ten (10) days for non-payment of premium. In the event that Sublessee or vendor, con- tractor, tenant, consultant, engineer, architect, or other party to a contract with the Authority are notified that an insurer intends to non-renew a policy or reduce coverage below the requirements set forth herein, the party whose coverage is so affected shall immediately notify the , and arrange acceptable alternate coverage or self-insurance to comply with these requirements. (2) The Authority’s approval, disapproval, or failure to act regarding any insurance supplied by Sublessee shall not relieve Sub- lessee of full responsibility or liability for damages and accidents as set forth herein. Neither shall the bankruptcy, insolvency or denial of liability by the insurance company exonerate Sublessee from liability. (3) Sublessee shall require each of its contractors, subcontractors and agents who enter the Leased Premises (as such term is defined in the Sublease) to comply with insurance requirements determined by Sublessee. To the extent any contractor, sub- contractor or agent of Sublessee does not maintain insurance coverage as provided in this Exhibit , as between City/County/Authority and Sublessee, Sublessee shall be liable for any deficiency in such contractor’s, subcontractor’s or agent’s insurance. (4) No special payment, except when separate lien item is provided, shall be made by the Authority for any insurance that Subles- see may be required to carry. F. ALTERNATIVE RISK FUNDING Provided Sublessee maintains a net worth greater than or equal to $500,000,000, Sublessee may comply with its insurance obligations by a combination of self-insurance, captive insurance and/or excess insurance with designated limits described above. Sublessee must have an employee whose position includes management and handling of insurance and/or contracted claims administration staff. The reserves the right to increase the net worth requirements set forth herein on the fifth (5th) anniversary after the Effective Date and every five (5) year period thereafter during the term of the Sublease for the purpose of determining Sublessee’s self-insurance rights, provided that, such increase shall not be more than 5% above the net worth requirement for the proceeding five- (5-) year period. If either Sublessee’s net worth falls below the minimum described above or any Guarantor fails to satisfy the requirements set forth below applicable to a Guarantor, and Sublessee cannot obtain the required coverage, the reserves the right to require Sublessee to provide a bond or Letter of Credit in the amount of the required coverage at no additional cost to the Authority. In lieu of Sublessee maintaining the net worth set forth above, at Sublessee’s election and for all purposes of this Exhibit , the net worth requirement above shall be deemed satisfied if a Guarantor maintains a net worth greater than or equal to $500,000,000 and executes a Guaranty in a form mutually agreed to by the and such Guarantor.