STRAINS OF MACKTUAG PIER LIVE EASTON COONSERYAION OOWESSION OF HED SEAER OF MIOHIOANE 10 LAKaRAD PIED LIE coNPANTY, IO. ‘TNIS RASH, oxeouted thie twenty-third day of April, As De 1953. by ‘the State of Hichigan by the Conservation Vommisaion, by Wayland Osgood, Depuby: Dizeotor, acting under ond pursuant to a resolution adopted by ble Conservation Oonmission at its necting held on Yobruary 13, 1953, and ty virtwo of tho authos Sty contarred by Act Ho. 10, P. As 1953s Rereinafter reforred to ae Grantor, to Tekohond Pipe TAno Company, Ino,, & Delaviare coxporation, of $10 22ni Avemie Heat, Superior, Winconsin, hereinafter referred to as Grantoo, HISNMSSEDH - WHRRMS, application hea boon nado by Grantee for ax oasensnt subhor- Asing 46 to constiues, lay and matntatn pipe Lines overy ough under and ‘upon certain Lote Yottor Iande belonging to the State of Mohtgen, and under the Jurialiction of the Department of Oonservation, located in the Straits of Mnciinse, Miobigas, for the purpose of transporting petoleun and other yro- auote; end ‘WHOMEEAS, tho Consorvetion Consission 1s of the opinion that the prom posed pipe Line system will be af Doneflt to all of the people of tho State of Wichigan and in furtherance of the yublic velfare; and ‘WHERMAS, the Conservation Comission duly considered the applice- ‘thon of Grentee and at its mesting hold on the 13th day of Pebruary, A.D. 1953, approved Uke conveyance of an easenenteHOH, THRREYORD, Zor and In consideration of the sun of tho ‘Thousend Your Hundred Fifty Dotiars ($24450,00), the receipt of which ti hereby acknowledged, end for and tn consideration of the undertokines of sb forth herein, Grentor Grantee and subject to the teri and conéitions hereby convoya aid quit cleins, vithout varranty express or implied, to Grantee an easenent to construct, Ley, raintaln, use and operate two (2) pipe Lines, one to be located within each of the tw percols of bottom Lands hereinafter dosoribed, and each to consist of twenty inch (20") 0 D pipes together with anchors snd other necessary appurtenances and fixtures, for ‘the purpose of transporting any naterisl or substance which can bo conveyed though a pipe Linos over, throughs under and upon the portion of the bottom Lands of the Straits of Mackinac in the State of Michigan, together sth the right to onter upon said bottom lande, dogoribed as follow A121 bottom Lants of the Straits of Naokinec, in the State of Michigen, ying idthia an area of firty (50) fest on each slde of the following two center 1fnes: (2), Hastoxiz Santa Wings Desinntng ab a gota’ on the ortherly- ative’ ins ot'the Steelue oe Macclane ona Searing 9¢'Soath twenty-four Gegzeao, no ainttes tad thisty- six seconds Rast (8 24° 00! 36" 3) and distant one thousand seven hundred end twelve and eizht-tenths feat (1,712.8!) from United States Lake Survey Uriangulation Station "Green" (United States Lake Survey, Latitude 45° 50' 00%, Longitude BIP Abt 58"), eoid point of beginning being the intersection of tho contor Iie of a twenty ineh (20°) Dipe ino ant the sd northerly shore Lney thence, on a tearing of South Fourteen dnesdee thixtycssvon minutes and fourteen sosonta Mest (§ 1 37" 1K" W) a distance of ninoteen thousand one undred and forty-six and. no tenths fact (19,1%6,0') to a botat on the southerly chore Lino ef the Styatte of Magkinee Wilsh potat te the invartestion of the sel cutter line of the twenty tnch (204) pipe ine ona the sate eoushery have Ling; oot Ag Alstond goven husdred ond soveaty four fot tovon tonthe fout (77.78) anton 8 besrang of Soudh Shistaveds dogzeony etettosn wlnatos and fertyetive seconds Most (§ 36° 18! 45" ¥) grom United States Lake Survey Tri. angulation Station "A, Mackinac West Base" (United States ~*Lake Survey, Latitude 45° 1/71 2", Tongitute 8° gt pat), (2) Wesberky Senter Line: Beginning at & point on the nostiitly atoz0 Une of the Stoaite of Yadkinne on a Benving of South forty-nine degrees, tventy-five mimtes : end forty-seven seconds Saab (8 69 254 7" 3) ant dem fant. two thousand six Mandzed end thirty-four ond nino : tontha feat (2,634,9') from United States Triangulation Station "Green" (United States Lake Survey, Latitude ASP 50! 00", Tongtbute GIP Kl! 58H) sada point of be- slnning being the Intersection of tho canter Lins of a twenty anch (20") pipe Line ant the yaid northerly shore ne; thence on a bearing of South fourteen dear thirty-seven inates ond fourtoon seconde West (8 UP 37" Uv W), 2 aistance of nineteen thousand four lamdred and. atxty-five and o tenths fect (19,465.0") to a yodnt on the southexly shor Iino of the Straits of ackineo which point 1s the intersection of tho said center Line ; of the twenty inch (20") pipe line and the said southerly shoe Lins ond 18 distant one thousand no bindred and ‘thirty-oix and four tenths Zest (1,035.4) on a besring of South sixty-three degrecs, tventy minutes ant titty : four seconds Bass (8 65° 20" 5!" 2) fron United stat Lake Survey Friangulation Station KA, Mackinac Vert ; Base" (Tnkbed Stobes Tako Survey, Latitude 45? k7t 2h, Lonettude 8 M6" 22"), FO HATH AND £0 HOLD the sad eosenont unto sala Grantoo, tte successors and assigns, subject to the terme end conditions herein sot forth, until temineted ae hereinafter provided, Shia ansenent 1s granted subject to the folloving torus ant ‘condition ' 4, Grontve in its exerotes of rights under thie onsdment, including its designing, constructing, testing, operating» maintaining, ond, in the event of the termination of thie eseouent, its abanioning of sald pipe 2ines, shell follow the usual, necessary and proper prooetures for the type of operation involved, and st sli tines shall exorcise the ane care of a reasonably prudent pereon for the safety ani welfareof all persons and of all public and private property, shal comply with a2 ave of the State of Michigan ant Be of the Federal ditermont, unless Granteo shall be con~ testing the seme in good faith by appropriate procesding and, An addition, Grantoe shall comly with the following eifications, conditions and requirenente, unlé compliance therewith 1a waived or the speeifiostions or DondLtlone modified in writing by Grantort (2) 492 pipe Line Lala in water up to titty (50) foct in depth shall be Iaid in a atch with not less than fifteon (15) feet of dover. ‘Mhe‘eover shall taper off to sero (0) feat at an approximate depth of sixty-five (65) feet. Should 4 bo discovered that the bottom material 1p bard rock, the ditch aay bo of Lenser dept, dat #411 degp enough to proteat the pips Ines ‘agninst 100 and anchor dane (2) Mintmn tosting specifications of the twenty Anch (20") OD pipe 24nes shall bo nob less than ‘the following! Shop eat 1,700 pounds yer aquare inch gauze 1,500 pounds por square inch gauge Installation Text--1,200 pound per square inch gauge Operabing Preusure- 600 pounds per aquare inch gave (3) Ata welded Jointa shell be tested by X-Ray.(4) he minim curvature of sny sootien of pipe shall be no less than tvo thousand and figty (2,050) feet radius. (5) Automstic gas-operated aist-off valves shall be installed and weintained on the north ond of each Line. (6) Antonatic check valves hell ve snstel led. ‘and, maintained on the south ond of each Line. (2) To eupty pipe shall havo # negative buoyency of thirty (30) or more pounds per Linear foot. (6) Catnoaic protection shall be installed to prevent deterloration of pipe. (9) #2 pips shall ve provi set by eephalt primer cost, ty inner wrap and outer wrap compecad of lass fiber febric materiel end one inch by Zour inch ("x J) slats, prior to installation. (10) The maximum open ox length of pipe uneupported shail not exeacd seventy-five (75) feeb. (21) The pipe weight shalt riot be Lees then one hundred staty (160) pounds por Mnear Zoot, (22) he waxtamn carbon content of the steel, fron which the pipe 1s maufactured, shall not be in oxcoss of, «2H? per cents(29) tm Locations vhere £121 is used, the top of the thon £ifby (50) feet wid #411 ah be no Le (1b) tn weapest to other specifications, the ino shat] be constructed An conformance with the dotatled plana ad apecttientions ‘heretofore £4168 by Grantee With Lande Biviaton, Department of Gonservatton of the State of Mohigan, Grantee shall give timely notice to the Grantor in writing: (1) Of the tine ond place for the comencenont of construction over, throvgh, unter or upon the tobton ‘Lands covered ty this easenont, said notice to be atven at Least five (5) days in avonce thereo!t (2) Of compliance with any end o12 ‘requizeaents of ‘the United States Goast uard for mixetne the Locatton of said pipe Linos; (3) Of the fiiting of saté pipe Lines with oft or ‘any other substance being transported commerislly; (4) Of sny brooks o¥ leaks discovered by drantes in ald pipe Maca, sald notice to be given by telephone ‘promptly upon discovery and thereat ter confirned by vogiatered mail; a(5) Of the completion of any repairs of said pipe Lines, ond time of testing thereof, sald notices to be given in guffictent time to per nit Grantor's euthorized represontatives to be present ab the inspection and testing of the pipo Lines after said repaira; ond (6) Of any plan or Antention of Grantee to abonton enid pipe Lines, paid notice to be given ab least sixty (60) days prior to conence- nnont of sbandonpent operations, ©. The easement hereth conveyed may be terminated by Grantor: (21) 1 after doing notified in writing Ww. Grentor of any specified breach of the terme ‘and conditions of this eassnent, Granteo shall. fail to correct said breach within ninety (90) Gays, or, having comenced rovediel action within such ninety (90) asy period, guch eter time ag it Le reasonably poustble for the Grentee to cor reot said breach by appropriate action and the exoreise of dus diligence in the correction thereat or| | 4 (2) 12 Grantee fatts to start construction of the pips Linos aathoriset herein wdthin tw years fron date of execution of this insbrasent; or (3) If Grontee fails for any consecutive three- your poriot to make ‘substantial use of anid pipe Lines comeroteliy and elo faite to eaintain said pipe nos dusiag sald period A such condition as to be available to conlezcla) use within thirty (90) days. 2, onstruction of the pipe Lines contoaplated by this instrument shall not be commenced until «11 nocostary anthori— zation ond assent of tho Corps of Engineere, United Stab Army, eo far as concors the yublie xights of navigation, shal here been obtained, 3B, Jn the event of any relocation, replacenent, unjor repair, or abandonnent of either of the pipe Lines authorized by this easoment, Grontce shall obtain Oranter's yritten approval of procedures, methods and materials to be followed or used prior to commencement thereof, F, The maximum operating presaure of either of eald plye Lines Shell nob exceed six hundred (600) pounds per square inch angesIf there 48 a byork or leak ox on agparent brenke oF oak An either of gold pipe Manes, or 4f Grantor nobish Orentos that it has good and ouffictont ovidonce that thore is or may de a bresk or Lenk therein, Grantes shall Smetiately end compl; 7 stat dows the pipe Line involved and seid pipe Tine shalt act te placed in operation unbSl Grantee has comtucted.a shut—tn two (2) hour pressure test of ox hundred (600) younde por squere inch gouge showing that no substance 4s esteping fron a bresk or eck An sald pipe Line. 4G. 12 olf or other substance escapes from a bresk or leuk An the eat@ pipe Linos, Grantee shall imediately take all uewel, necessary end proper measures to eliminate any ofl or other substence which may escape, H, Im tho event the oasoment heretn conveyed 19 tominated ‘with rospoot to either ox bath of said pipe Mines, or 1 any part or portion of © pipe Line 4 sbandoned, Grantee shall ‘ako ol} of the usual, necessary anf proper sbenioament pro cofures ea reqsixed ant approved by Orentor, Said abandon ont operations shall be completed to the satisfaction of Grentor witidn one year after say sbendonment of any part oF portion of 9 pipe 1ne; or in event of termination of this easonont, within one your theresfter. After the expiration of one year folipwing the termination of thio janent, drentshall af the option of Grantor quit claim to the State of Michigan aL of ite right, title and interest in or to ang pipe Hino, appurte- nanoes ov fixtures zenaining over, through, undex oF upon the bottom ands covored ty this essesont, Abandonment procedure’ As used hhorein include all operations that aay bo restonsbly necessary +0 protect Life end property from subsequent injury, 1. Grantee shel pormit Grantor to Anspoct at reasonable ines ‘ud placos ite records of oft or any other aubstance Delng trans ported in said pipe lines and shall, om request, oubmit to Grantor inopection reports covering the autonatie abub-of? and. chock valves and notering stations used tn conection with the Straits of Mackinac exowsings J. (1) Grantee shell indemnity and hold harmless the Stato of Miohigon from sll domege or losses caused to property (including proporty eloneing to or hetd in trust Wy the State of Michigan), oF persons due to or artsing out of tho operations oF actions of Grantoe, Ats esployess, servants and agents hereunder. Grantee shat place in efzect prior to the constmiction of the pipe nes exthorized by this easenent and shall aaintaln in full fozoe axd effect duntug the Lie of tite onsenent, smd unti1 Grantor be approved completion of abandonment operations, a Comprehensive Bodily Injury and Property Denage Iisbslity polos, boud or surety, 4n fourm end substance ecceptable to Grantor dn the aun of at Least One Hidiion Dotiars (§2.000,000,00), covering tho Liability herein Amposed upon Granto. 10(2) Grantes, prior to comenotng construction of ‘the pipe Hines authorised by thie ensenent, shall provide the State of Nickles with a curoty dont tn the penal fun of One Aundzed Shousand Dollars ($100,000,00) 4n form and eubstence acceptable $0 Grantor, ard surety or sureties approves ty Grantor, to wen, truly and fetnrully verfore the terme, senont. Saad. conditions and roquivanenta of thio Yond shati be miintasnet in full force and effect @uring the 140 of this easanend and until Grantor has approved completion of Grentoo!s abendonsont operabions. Said bond shalt nob be xeduoed sn anounb except with the written consent of Grantor. K, Grantee shall witliin sixty (60) doye thereafter nobity Grontor 4m writing of any assignment of this oasonent. Ts Tho terns end conditions of thia ansonent shall ve bind Ang upon and ime to the Densfit of the respective successors ‘and assigns of Grantor and drentee. My ALL xighta not specifically conrsyed herein are reserved, ‘to the State of Michigan, “11%, Granted shall nob improvise, construct or maintain ahip-to-shows oF ship-to-pipe Line losding or unloaiing facilities over, through, unler or upon eny of the bottom Lents herein deacribed for the purpose of renoving material from ov Anjosting saterial into ood pipe Lines, ©, Grontor shall hove the right ot all rénsonable times and places to inspect the pipe Lines, appurtenances and mont. fixtures authorized by thie P. Tt chal] not be @ breach of the terme ond conditions of this easenont if for operating or uaintenance reasons Grentee shall make use of only one of aakd pipe Lines at 8 tine, q Where provision 4s made herein that Grentee shall obbain the authorization, approval or consent of Grantor, Grantor egrocs thet it will not unrensonably withhold the saue, Dy WIEMESS MIEREOP, the State of Michigan by the Gonaervation Oosmdeston, by Weyland Osgood, Doputy Director, acting pursuant to authority: specifically conforred upon hin, has caused thie instrument to be exeouted thie twenty-third day of April, A.D. 1953. Signed, Secied and Delivered SUATE OF MICHIGAN in the Prosence oft ‘BY THM OONSERVATTON CosMTSsrON fo/ ene Bower By_/9/ Weylena oagood. Jano Bower Wayland, Osgacd, Dopuby Dincotor, Jol Biazabeth Soulo itwabeth Soule 7 195 pursuant to reaolutions of the Gonservatt on Commission dated. Pebrusxy 13, 1953 end July 10, a‘sear oF urcHtcAN ) | ) ‘oourey oF INGHAM ) On thie twenty-third day of April, A.D. 1953, before mo, o Notary Public, in an for sald county, personally appeared Wayland Osgood, Doputy Director, Imowm by me to bo the person who oxcouted tho within Anstmunent end who, being duly evom, Gepones and says that he 4s the duly ‘oppointed deputy @ivector of the Conservation Comziasion and thet he executed the within easement under authority specifically conferred upon | him by Jay and by the Consexvation Comission ab its mestings held on February 19, 1953 and July 10, 19§2, and. who acknovledged the sane to be his free aot ani deol ond tho free act end deed of the State of Mote i ly the Conservation Gorm seton, tn whose behal? he acts, Oe Be O.R, Humphzys, Notary Palle, Togham Gounty, Mohigen iy Comission oxpizes Septoubor 20, 195! Ruamined and approved 4/23/53 ‘ag to legal form ond effectt Len Damn ' Tostatant Attorney GonoralMeworandum to the files Re: Meeting on August 10, 1970,, to discuss insurance provisions in easement gtanted to Lakehead Pipe Line Co., Inc. in 1953, for two twenty inch pipe lines across the Straits of Mackinac (L~2316) Lakehead, a U, §, Subsidiary of Interprovineial Pipe Line Co., Inc. of Canada, was represented by J. Blight, Secretary~Treasurer and R. B. Burgess, General Gounsel. They were accompanied by their insurance representative and manager of Michigan operations, The D.N.R. waa represented by A. Gene Gazlay, Assistant Director; Gaylord A, Walker, Deputy Director; Jerome Maslowski, Assistant Attorney General; J.D, Stephansky, Chief, Lands Divisions H. A. Young, In Charge, Oil Pollution Control, Bureau of Water Management; and R. G. Wood, Tax Land and Services Supervisor, Lands Division. Also present was Bill Palmer, Executive Secretacy, OL1 and Ges Association, vho acted as intermediary for Lakehead in arranging for the meeting. We. Blight called attention to covenant J (1) of the easement in which Grantee agrees to indemnity and hold harmless the State of Michigan from all damages and losses caused to property or persons due to or arising out of the operations or actions of Grantee and further provides that Grantee shall maintain a Comprehensive Bodily Injury and Property Danage Liability policy, bond ot surety, in form and substance acceptable to Grantor tn the sum of at least one million dollars covering the ability imposed upon Grantee. Mr. Blight adviced that a rider had been added to their one million dollar insurance policy deleting coverage for damage caused by ofl pollution, Although this constitutes a violation of the aforementioned easement terms, it may not be aa serious as it appears because Lakehead currently has assets of one hundred ninety two million dollars and acknowledges its Liability for any and all damages, including pollution from any break in its Line, without Limbtation and the only change 18 that the first ml1i1on 48 not covered by insurance as to pollution damages.Ww +e Mr. Blight advised, and this was confirmed by the insurance representative, that damage caused by of1 pollution is now excluded from all policies written for off operations whether drilling, producing or transporting, and that Lloyds of London are studying the situation but as of now they also exclude damages by pollution. An alternative would be to purchase a one million dollar serety bond, but this is considered money down the drain as the Surety would be called upon to perform only if the Principal were unable to meet its financial obligations, Safety factors to prevent pollution wore discussed and it vas stated that any @rop in prescure would cause the valves on each side of the Straits of close within ten seconds. If the rupture vere at depth the outelde pressure would cause water to enter the pipa rather than ofl to escape, If the rupture were near either shore where the water pressure would not exceed the pressure in tha pipe there would be a loss of of1 but the operations manager said this would not Likely exceed one hundred barrels as the valves would close quickly, cutting off the pressure. We were advised that all Joints have been re-sealed using improved methods and that only two major breaks have occurred in the overland line in the 17 years of operations. One of then was eaused by a construction accident by another company and both breaks were quickly repaired without serious damage or loss of oft. The excellence of their operation was confirmed by H. A. Young and he doesn't hand out many bouquats, Tha umndervater lines across the Straits were completely inspected in 1963 at @ cost of $140,000.00 and found to be in A-l condition. ‘hey were last presaure teated with vater In 1967, Additional tests will be made fairly soon, but the Company ts confident the pipe has not deteriorated and is as good as new.Bea j Mr, Blight agreed to cover the subject in a letter with the understanding —~~~enat’ ££ the’ Departmont were to concur that the Conpany can handle this Mability without a surety bond the Director would so recommend to the Commission as this would require @ modification of the easement, a : R. @, woop August 12, 1970 ec: A. Gene Gazlay Gaylord A. Walker Jerone Maslowskt J.D, Stephansky “EP Yong” 7 eee pee Gerald B. EddyLot H 5