3. Terms and Conditions for Grant of Easement

Under the terms of the easement, SCE may construct, operate, use, maintain, inspect, repair, replace, reconstruct, enlarge, alter or remove overhead electric lines on the property as necessary or convenient for the transmission, distribution, regulation or control of electric energy to be used for light, heat, power, or communication. However, SCE may not place towers or poles on the site.

The easement terms also grant SCE rights of ingress to and egress from the property. SCE may remove and trim trees and shrubs as permitted by law, install gates in fences on the site, and keep the property clear of any debris, buildings, parked vehicles or other obstructions that may pose hazards or interfere with SCE's access to or use of the area. SCE may also make surface cuts on the ground in the easement area in order to maintain clearance between the wires and cables and the surface of the ground as may be required by the Commission or any other governmental authority or as necessary for the construction, maintenance, or operation of the electric lines, communication circuits, and appurtenances on the site.

SoCalGas has reserved rights to install underground pipelines, fences, and roads on the easement area and to engage in other unanticipated uses of the area necessary to support SoCalGas' utility business. However, SoCalGas may not exercise these rights in a manner that interferes with or endangers the operation or maintenance of SCE's electric lines and communication circuits or SCE's access to its facilities on the site. SoCalGas also may not deposit any earth, rubbish, debris or any other material on or near to the easement area that would pose a danger to SCE's electric lines and communications circuits or might interfere with SCE's access to these facilities.

The easement terms do not grant SCE any right, title to, or interest in any oil, gas, petroleum or other mineral or hydrocarbon substances within the easement area. If SoCalGas or its successors in interest wish to prospect for oil, gas, petroleum, or other mineral or hydrocarbon substances in the future, they must do so from adjacent land and in a manner that does not endanger or interfere with any structures or facilities placed on the easement by SCE.

SoCalGas may not grant any other easements over the site without SCE's written consent, except for easements that SoCalGas is required to grant to the City of Santa Clarita or other public agencies.

SCE has generally agreed to indemnify and hold SoCalGas and the previous owner of the property, Newhall Land and Farming Company, (Newhall) harmless from any and all claims, damages and liability arising out of SCE's use of the easement, except for liability caused by the sole negligence or willful misconduct of SoCalGas or Newhall.

In addition, SCE has agreed to indemnify and hold SoCalGas harmless from any claims or liability arising out of the presence or suspected presence of hazardous materials brought to the easement area by or on behalf of SCE or which are released in connection with SCE's operations at the site, except for claims or liability caused by the sole negligence or willful misconduct of SoCalGas or Newhall.

Rye will pay SoCalGas $22,000.00 for the easement to be granted to SCE.⁴ This amount equals the assessed value of the easement.