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BURLINGTON NORTHERN RAILROAD 125

ENGINEERING DIVISION 373 Inverness Drive South Englewood, 80112

.Aoril 28, 1989

U.S. Environmental Protection Agency RECEIVED Darrell Sommerhauser Superfund Branch 40219623 IVIAY 0^ 1989 Waste Management Division 726 Avenue mUD SECTION City, Kansas 66101 SUPERFUND RECORDS

Re: EPA 104e request - former BNRR property - Hastings, Well #3 Subsite.

Dear Mr. Sommerhauser:

Please reference the above EPA 104e request concerning a parcel of property once owned by the Burlington Northern Railroad and described per the attached Quitclaim Deed dated February 16, 1972.

Numerous individuals in the Burlington Northern Railroad (BNRR) were. contacted concerning the referenced property. Information supplied by these individuals are enclosed.

Mr. Bob Farmer, Manager - Property Management, BNRR, was contacted concerning records or knowledge of the property or operations at the site once owned by Farmers Grain Storage Inc.. Mr. Farmer could not locate anyone with knowledge of the site or any files of the former BNRR lease.

Mr. Gary J. Greshowak, Manager of Title Records, BNRR, was similarly contacted. Mr. Greshowak located records concerning the cancellation of the lease to Farmers Grain Storage Inc. and sale of the property. Copies of these records are enclosed.

Mr. Al Micek, BNRR Director of Customer Service, was contacted concerning the Hastings site. Mr. Micek was located in Hastings for the BNRR from 1968 until 1984. Mr. Micek recalled and explained that Farmers Grain Storage, Inc. of Hastings dealt in Commodity Credit Grain. Commodity Credit Grain is a program that is under the operations of the U.S. Department of Agriculture. When farmers default on Department of Agriculture loans, the grain becomes the property of the Department of Agriculture. The Department of Agriculture then arranges for the grain to be brought to a storage facility such as the Farmers Grain Storage facility in Hastings. The Department of Agriculture pays for the storage of the grain until the prices go up. The Department of Agriculture then sells the grain they have in storage.

An effort has been made to research the Sanborn Insurance files and maps concerning the Hastings area. This effort has taken longer than anticipated, Information found concerning the Hastings site in the Sanborn Insurance files and maps will be forwarded to your office when it has been received by this office.

The following is in response to the questions itemized in the EPA 104e request:

1. Describe in detail the Burlington Northern Railroad's use, during its ownership, of parcels 018 and 019 which are also identified as tax lots 7 and 8 respectively.

Records from the Title Services Department of the Burlington Northern Railroad indicates that the Company leased the referenced property to Farmers Grain Storage, Inc. from July 1, 1959 to Noverber 3, 1970. The property was sold to Farmers Grain Storage on February 16, 1972. No railroad employees were found who remembered any use of the property prior to 1959. We have been told that Sanborn Insurance maps indicate that between the years of 1884 and 1950 no buildings were located on the site. A 1930 Sanborn Insurance map indicated a Livestock Sales Building was located to the immediate east of the property. This building was not located on the 1924 Sanborn Insurance map. A later Sanborn Insurance map indicated that the Livestock Sales Building (date unknown) became a lumber storage building. We were also informed that the 1905 Sanborn Insurance Map for the Hastings site indicated that a Machinery Storage Building was located immediately west of the referenced property.

The only known connection the railroad had with Farmers Grain Storage, other than as the lessor of the referenced property, was to deliver empty grain cars and provide transportation for loaded grain cars from the facility.

2. State all dates when the Burlington Northern Railroad utilized the above referenced properties for storage, handling or loading of grain products. Provide documents to substantiate the usage of the property for grain storage or handling.

No evidence was found that the BNRR ever utilized the property for storage, handling or loading of grain products. All of these operations, including the loading of the grain, were performed by Farmers Grain Storage.

3. State all inclusive dates when the Burlington Northern Railroad leased the above referenced properties to others and identify to whom the property was leased.

The only reference in BNRR files to this property being leased indicates Farmers Grain Storage, Inc lease the site from 1959 until 1970. A copy of this reference is enclosed. A copy of the BNRR-Farmers Grain Storage, Inc Offer To Purchase agreement was found in the BNRR files. A copy of this Offer to Purchase agreement is enclosed.

4. Provide information including documents which indicates that the Burlinton Northern Railroad used or arranged for the use of liquid grain fumigants, including, but not limited to, carbon tetrachloride.

No information was found that the BNRR ever used, or arranged for the use, of liquid grain fumigants at this site. If fumigants were used at the referenced site, it is assumed it would have been by, and at the discretion of, the operator of the facility.

5. Provide documents indicating Burlington Northern Railroad's relationship with Farmers'Grain Storage, Inc.

The BNRR leased and sold the referenced property to Farmers Grain Storage, Inc.. A reference concerning the lease was found in the sale file (a copy of the sale file with the letter referencing the lease is enclosed). However, a copy of the actual Lease Agreement was not found. The lease apparently ended in 1970. BNRR does not keep inactive lease files for more than four years.

The BNRR provided transportation for grain shipped from the Farmers Grain Storage facility. There were no contracts found for this transportation service. Grain is normally moved under a published tariff and not under contract.

6. Provide information including documents that identify other parties who leased properties located on Attachment 2 before or after occupancy by Farmers Grain Storage, Inc.

No evidence has been found of any occupants being on this property other than Farmers Grain Storage, Inc..

7. Identify others who may be able to provide information to EPA regarding the above referenced properties. These include, but are not limited to, railroad employees and inspectors, either private or governmental (at city, county, state and federal levels).

A list of individuals who were contacted to develop this response is attached.

8. State whether or not the Burlington Northern Railroad obtained a license from the state or federal grain inspection authorities in connection with your activities at the above referenced site. Provide copies of licenses if your answer is affirmative.

There was never any reason for the Burlington Northern Railroad Company, as a transportation company and as leaser of the property, to obtain a license from the state or federal grain inspection authorities for the activities of the leasee of the property. The inspection of the grain would normally be arranged by the purchaser of the commodity. These inspections were often performed after the grain was in the railroad car, but it was not the railroad's responsibility.

9. Describe any spills or accidents involving liquid fumigants at the Burlington Northern properties identified in Attachments 2 and 3 during the period of your ownership. Specify what fumigant was involved, in what quantity, and the response to the accident or spill. No record of any spill on this property were found in BNRR files The railroad did not handle fumigants at this facility.

Enclosed are copies of our file records and letters of information indicating what was known of the site by property management and title records personnel. Questions concerning these records or information provided above may be directed to Mr. CA. Culley of this office.

G.G. Albin ' Y't'^'i^ Director of Engineering cc: Ann Blythe Form No. 331 jifi^f S52^fJ^i Adams^County, ss. Recorded TflQ^i.* ^^^^ at 3:35 P.M. in Book 301, paee STA^;PTAX : JUL 261972 Register of Deeds. QUITCLAIM DEED ^j?e:^Pzz-

, K^ PRESENTS. That BURLINGTON: NORTHERN INC^, a corporation organized under .the laws of the istate of , successor in interest to Chicago; Burlington & Quincy Railroad Company, Grantor, in oonsidei^ation of Twenty-/ six Thousand and no/lOO ($26,000.00) DOLLARS, to it duly paid, the receipt whereof is hereby acknowledged, has granted, conveyed, remised, released and quitclaimed, and by these'presents does grant, convey, rehise, release, and forever quitclaim unto FARMERS GRAIN STORAGE, INC., of,P. O. Box 332, Hastings, Nebraska 68901, 'Grantee, and to its successors and assigns forever, all its right, title, interest, estate, claiia and demand} both at law and in equity of, in and to the following described real estate, torwit:;

• •'^- •.• ; •ACtract••tB£A:landrcbmpri8ing^a'.part• of.':the'^Sou^ -.v.''^^ •::• ' west Quarter of the'^utheast Quarter (SW%SE%) of :^^ Section Eleven (11)V Tbwnahip S^ven (7) North, Range ten (10) West:of the Sixth Prlftfclpal Meridian; City ; • of Hastinga, Adams jCpuaty, Nebraska and more particu- • ^ . v'-'i'^larly:'describedTas 'follows: -Z-ZZ[

•; y.First,';.:to''aiscertainr/the^int:- of. beginning',,--start- ZyyZZy. '•:^-.;\-:y^at;the:interBectioh;;bfi'-the."cdRer .line-of:;Secondr• ^-^^•-• v^ '' '""^ the Sbutheaat Quarter (SW%'SEii); thence East along the V center line of Second Street a distance oi 4$2.35 feet ^M BHl thence South along said east line of Maple Street ay distance of 35.0 feet to a point on the south line of Second Street; thence East along the sedLd south line of Second Street a distance of 30.0'feet; thence South parallel with the e^st line of Maple Street a distance of 150.0 feetr thence East parallel with the south line of Second Street a distance of 100.0 feet; th^hc'e South -' V7 parallel with the east line of Mapl^ Street a distance 'of 8.95 feet to the center line ot the Burlington Nor­ thern Inc. R4Lilroad Track Number 40; thence East along the center line of said track a distancei of 445.0 feet; thence South parallel with the eattt line of Maple street a distance of 160.0 feet; thence West, parallel with the south line of Second Street a distance of 67.0 feet to . the. ACTUAL point of beginning of the parcel to be con­ veyed; thence continuing. West along the last described course a distance of 203.0 feet; th^ence ^uth parallel with the east line of Maple Street a distancs of.208.0. , . feet; thence Southwesterl- - ^' ——— -*^ «' = ««> *-*'*• *- a pointr on the east~line' of Maple Street as pi said point being 605.0 feet South of the'soutH line^ of Second Stpreet; thence South along th'e east line of Maple Street^aa'^platted, a distance of 147.84 feet to ai'point 12.0 feet perpendicularly distant, - . - northwesterly from the center line of Burlington ' Northern Inc. Railroad Track Number.69; thence North­ easterly, aldng a line 12.0 feet distant, parallel . and concentric with the center line of said Track Number. 69 to a point, said point being 604.47 feet along a dirjact mieasurementt from the last described point;''thencpoint;''^thence Northwesterlyva distance of 303.45 feet to the actual point of beginning, containing an area bf 3.01'acres more or less. -. RESERVING, however, unto said Grantor, its suc­ cessors and assigns, all of the coal^ oil, gas, casihghead gas and all ores and minerals of every kind and nature underlying the surface of the prem­ ises, herein conveyed, together with the full right, , privilege and license at any and all times to ex­ plore, or drill for and to protect, conserve, mine, take, remove and market any and all such products in any manner which^ill not damage Structures on the surface of the premises herein conveyed.

Together with all and singular the hereditaments and ap­ purtenances theifeunto belonging; TO HAVE AND TO HOLD the £d)ove de­ scribed premises unto the said Grantee, its. successbrs and assigns, IN WITNESS WHEREOF, said Burlington Northern Inc., has caoiaed these presents; to be signed by its Vice President and • • ''^'^ •~~-^'" Secretary, and its corporate seal to be hereunto : affixed, this 7<^ day of ,19^

Ih presence o^ BURLINGTON NORTHERN INC.

T^yjZ Vice President

ATTEST:

wS^^ Secretary

STATE OF MINNESOTA ••'77c^7Z,.^ COUNTY OF RAMSEY

• On this befbre me, a Notary Public .duly commisiBibned and qualified in and for said County, personally came the above xiamed ^ ^- DEFlEL , yfce _ ^Secretaryyofiy:;;: Buclington Northern Inc.; who are persona^y known^; to the identical. persons^whosentuMs arts: affixed to peed|^ :i '" " " _ Secretary of vBald;corpdra-',, .t£on,vahd they^acknowledged;the instrument to he thair voluntary y

: ••• • .•••:...'—...•, .-.. - •• -.,;.; •.• :• ^^y•••-••^.^•: V-> V-•^:^••'•^••:••v-•••••^'•••• act and deed, and the voluntary act and deed of; aai^ cosjEfbrdtion.:; WITNESS my hMdahd ofiCicial seal, at^St;^ County,...the'date aforesaid.vy'::"'y;r:y •••:'•:•;•>••'; ^;''':';-;;^^^^^ HASTINGS BUNGALOW ADD 101521 POLLARDS ADD *0I46I S.P COLES .01460 CITY EXTENSION ^^01390 BIERHAUS "bl525 II _, TOWNSHIRJii. RANGEJOW. ...I 22. SW^ SE^ SECTION. BOOK. .PAGE_il_ REVISIONS REVISIONS ot.aii.Tiow CADASTRAL MAP SaiajssLjislisaLSMdJ^as ADAMS County, Nebraska

DARREL DANGBERG a ASSOCIATES SCALE OMAHA,NEBRASKA «.'!<• h

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SiKg«?2ri-i-- V .• -' •'•:-''>'- ? -' REFERENCES Mr. Al Micek Director Customer Service Burlington Northern Railroad Lincoln, NE 402-473-7510

Mr. Charles Fish Director Safety and Rules Burlington Northern Railroad Naperville, IL 312-983-3199

Mr. Don Hogenson General Manager Burlington Northern Railroad Overland Park, KS 913-661-4285

Mr. Bob Farmer Director Property Management Burlington Northern Railroad Omaha, NE 402-422-5346 Mr. Roger Finley Director Property Management Burlington Northern Railroad Naperville, IL 312-983-3149 Mr. Gary Greshowak Manager Title Records Burlington Northern Railroad Seattle, WA 206-467-3374

Mr. Dave Thompson Marketing Department Burlington Northern Railroad Fort Worth, TX 817-878-2145

Mr. John Church Department of Agriculture Yorkville, IL 312-553-5823

Mr. Rick Weinzierl Department of Agriculture Champaign, IL 217-333-6650 i\\\a.cl\\A^^^^ '^ BURUNGTON NORTHERN RAILROAD

Title Services 2100 First Interstate Center 999 Third Ave. Seattle, WA 98104

April 12, 1989

Mr. C. A. Culley Environmental Engineer Burlington Northern Railroad Company 373 Inverness Drive South Englewood, Colorado 80112 Re: Request for information concerning groundwater contamination Site at Hastings, Nebraska / Farmers Grain Storage Inc.

Dear Mr. Culley: Per your letter to J. H. Ilkka dated April 7, 1989 concerning EPA letter 104e requesting information on property sold to Farmers Grain Storage Inc. (F.G.S.), the following is my response to questions presented in said letter. As most of the questions asked do not fall under the scope of this department I have responded by inserting N/A. Question #1 - N/A Question #2 - N/A Question #3 - correspondence file for sale to F.G.S. indicates that the property in question was leased to them from 7/01/1959 to 11/03/1970. Question # 4 - N/A Question # 5 - N/A Question # 6 - documents destroyed Question # 7 - possibly the RR Operating Department Question # 8 - N/A Question # 9 - N/A If I can be of any further help or assistance in this matter feel free to call me at 467-3374.

Sincerely,

. Z^/\7 ittM/Ho GJ J. GJi/eshoWak Mknagiei/Title Records

AAV^tcklMefl^ 3 BURLINGTON NORTHERN RAILROAD

Property Management 1010 S. 120th Street, Suite 300 Omaha, NE 68154 (402) 330-9706

April 10, 1989

Mr. C. A. Culley Regional Environmental Engineer Burlingfton Northern Railroad Company 373 Inverness Drive South Englewood, Colorado 80112

Dear Mr. Culley: I This refers to correspondence from the Environmental Protection ' Agency requesting information concerning property Burlington Northern Railroad Company once owned in Hastings, Nebraska. i i A search has been made in this office of any lease or sale files connected with the property sold to Farmers' Grain Storage, Inc., to no avail. Contact was also made with Mr. Tom FarreU of our Ft. Worth headquarters, former Manager of Leasing^ for Burlington Northern, who advised that lease files are retained for four years,' after which they are discarded. There doesn't appear to be any information , available as to the railroad's use of the property.

Sincerely,

Robert L. Farmer Manager - Property Management

EPA-Soil contamination Hastings, Ne.

/UWcLw.«-K+ A BURLINGTON NORTHERN RAILROAD

Title Services 2100 First Interstate Center 999 Third Ave. Seattle, WA 98104

April 20, 1989

MR. C. A. Culley Environmental Engineer Burlington Northern Railroad Company 373 Inverness Drive South Englewood, Colorado 80112

Re: Information concerning groundwater contamination site at Hastings, NE. Dear Mr. Culley:

Enclosed as you requested are copies of papers which indicates the date of cancellation of BN Lease to Farmers Grain Storage Inc.

Sincerely,

G. J. Greshowak Manager Title Records

^•^^^Llvi^eKTr ^ ^

Ca&'ElFim HAIL

Mr^ Joseph &« lieliAAoa Smptvabmx 22« 1971 LAW 0££ic«4i 216 Uortb Denver Hastinga» Jii«br«Jika 68901 Dear Mr, Halaannt In raforenoe to your lattar datad SaptaaJoar 17, 1971* ra<- gording oontraot aala of lax»d to ramara Grain £toraga. Inc. at siaatinga* Kaoloaad ia your o«^y of fully axacutad Offer to Furohaaa Contract datadttoveiiRbar J , 1970. iU.ao encloaed ia propoaed lagal daacription of land to ba conveyed, thm language ia the propoaed daaoriptioa oonfoma with the oouraea and ties of daaoriptioa of land conveyed to &err* Cochran, Incorporated. I think it*B heat to do thia in order not to have any poasihle gapa or ^KHrea in your conveyance, A copy of this deed is encloaed for your review. She land adjoining the east line of the premiaaa to he conveyed ia presently under contract to Mhaeler Luaher Bridge and Supply Co. MO legal description haa bean fumiahed on this paroel ^of land. The atost northerly course shown on Kxhibit "A* as 200 feet, I have increased to read 203 feet in order to aain- taia the 67 feet to be conveyed to MMeler Luober. This would aake up the total of 270 feet aa shown on the &err~ „< Cochran legal description. After your aiurvey ia conplatad, I would appreciate receiving a plat of aurvey along with ^ the surveyor's legal description. If they appear aatiafaotory, 1 will then draft up a proposed deed and aead it to you for your review*

I have dated the Offer to Purchase Contract tloveaber 3, 1970, the day that earnest noney in the asount of 96,000 vas received hy our cashier's office. I will infom our lease section to a&end buyer*a Leaae Mo, H£W 13578 dated July 1, 1959. The payment due October 1, 1971, in the aaount of gl2,000 may be delayed up to Uoyember 1, 1971* Sincerely youra,

Baynond £. Anderson Title fr Closing Agent i^ola. filet hU 189 - f Page 2 fiepteaber 22, 1971 ^ Mr. Joseph &. tielnann

beet Messrs. W. tj. £rnsen £. A. £ohl p, J, Staason Messrs. £maan and £ohlt finclosed is a copy of executed Offer to Purchaae Contract. Mr. B. J. Stassonx ^ Enclosed is Lease Ho. REW 13578 to Farmers Grain Storage, Inc, which should be cancelled as of November 3, 1970.

R. E. A.

REA/cr DATE Sept. 29, 1970

OFFER TO PURCHASE BURLINGTON NORTHERN INC.

X3a;XXS{?(XDNCXSBSXK(SM}fSUfi

GENTLEMEN: Burlington Northern Inc. BUYER'S 1. The undersigned, hereinaher called "Buyer", oFfers to purchase From SKMK^^tlXKAyttMKKXXJKdO^XMHMitiit OFFER fionpQX'^ hereinafter called "Seller", oil of Seller's right, title and interest in and to that parcel of land situated In or near the City (Village) of FSijtlu-o , County of Aaaii-;Li , and State of II^ 1: r C 'J iz"5 , shown ourlined in rea on niap marked Exhibit "A", dated j^ 14_ . 1;_.- "1 0 , ottaehed hereto ond mode 0 part hereof (said parcel of land being herein- after called ^%ie premises") at the price and upon the terms and conditions as follows.

PURCHASE 2. Buyer agrees to pay to Seller the purchase price of •1^26.000 PRICE AND for said premises, of which the amount of o O , 000 hereinafter called PAYMENT the "deposit", is paid herewith to Seller to Ise applied on the purchase price. Said deposit shall t)e refunded to Buyer if this off«r it HQ* aceapted by SatUi^whhtn one hundred twenty (120) doyi from the date of loid offer. .MK • The balance of said purchase price shall be paid as folio'w&: the sum of $20,000 la tvo (2) InstallmentB beginning vith ' $12,000 on October 1, 1971, and $11,000 on October 1, 1972- The' unpaid balance of said purchase price shall bear interest at the rate of IO^D per annum from October 1, 1970 until paid, CONVEYANCE ail paymentE of principal and interest hereunder to be made until further notice at the office of Seller as hereinafter provided. The buyer further agrees to pay all state, county, city and municipal taxes and assessments on said above prem­ ises, of every nature whatsoever, levied or assessed, occur- ing after the date hereof. The Seller hereby agrees that vihen the said purchase price and all other amounts to be paid to Seller are fully paid as herein provided, it vill execute and deliver to the Buyer a deed as otherwise set forth herein conveying said real property, at Seller's option, at Seller's ENTRY - office' located at 176 East Fifth Street, St. Paul, Minnesota, ited NO RIGHT 55101, within ten (10) days after notice to Buyer that said deed is ready for delivery. Acceptance of this offer by Selle shall be evidenced by delivery to Buyer of the duplicate copy TRACKS, BUILDINGS of this offer properly executed by Seller. nises, AND OTHER nd d IMPROVEMENTS It is further understood and agreed that if the Buyer shall/rr.> fail for a period of thirty (30) d ays/fai t'^r''''the same shall be ACCEPTANCE due under the terms of this agreement to pay to the Sailer any CONSTITUTES of the sums herein agreed to be paid by the Buyer either as ^ CONTRACT installments on account of principal, or as interest, taxes, assessments or snail fail to comply with any of the covenants LIQUIDATED on its part to be kept performed, then the Seller shall be re­ DAMAGES AND SPECIFIC leased from all obligations in law or equity to convey said PERFORMANCE property, and tlie Buyer shall be deemed to have paid any and all payments theretofore made under this agreement as rent and SUCCESSORS IN coiripens at ion for the use and occupancy of said prenises to be INTEREST re-i;ained by the Seller, not as a penalty, but as liquidated damages. Buyer may at any time pay the balance of said pur­ chase price to Seller without pentalty. ********

THIS' OFFER IS AND THE CONVEYANCE OF THE PREMISES SHALL BE SUBJECT TO THE FOLLOWING RESERVATIONS, AND OTHER TERMS AND CONDITIONS: (ITbMS AGREED TO AS NOT AFFECTING THE MARKETABILIT/ OF THE PREMISES HEREUNDER)

1 Easements - A reservation of the necessary right of way, said right of way to be determined by Seller, for RESERVATIONS the continued maintenance, operation and use of all existing drive^^ys, roads, conduits sewers, water "»'n|' 9°» lines, electric power lines, wires and other utilities,tracks and easements of any kmd whatsoever on the prern.ses, whether owned, operoted, used or maintoined by the Seller, Seller's licensees or other th.rd port.es and whether or not of record, with reasonable right of entry for the repair, reconstruction and replacement thereof, without limitation as a result of any further enumeration herein.

2 Natuml Resources - A reservation to Seller of all coal, oil, gas, cosir>ghead gas and oil ores """^ 7;""^'' f Lrv g^nd ^nd na^re underlying the surface of the premises, together with the full right, privilege and l.cense at any :::^Mtils?o.x^Iore?tr drill for and to protect, conserve, mine, toke, remove and market any ond all such products in any manner which will not damoge structures on the surfoce of the premises.

Form Q-SP-«400-A (5/68) -GTJl OTHER TERMS 1. Title Defects - if, within the ten (10) day period following Seller's notice to Buyer that Seller's deed is ready for AND delivery. Buyer notifies Seller thot Buyer has requested evidence of title to the pretnises, the Buyer shall furnish to Seller CONDITIONS such evidence of title within thirty (30) days of said notice from Buyer in the form of an abstract of title or a title cominitment from o title insurance company, and a written statement specifying the matters or defects other than said permitted exceptions and reservations which render Seller's title unmarketable and other than such usual exceptions contained in Owner's policies and the matters to which this sole is subject by the terms hereof, the time of payment of the balance of the purchase price shall be extended for a period of sixty (60) days after the receipt of said evidence of title and statement. If Seller is unable or unwilling to cure such matters or defects within said sixty (60) day period, and Buyer is unwilling to accept the deed subject to such matters or defects, then either party may terminate this agreement b serving written notice of termination upon the other party within fifteen (15) days thereafter and all further rights and liabilities under this agreement shall cease and terminate except that Seller shall return the deposit to Buyer and Seller shall reimburse Buyer for the actual amount paid by Buyer, if any, to on abstractor for an abstract of title or to a title company for a title report (but not for title insurance), provided that said abstract or title report shall be delivered dhd assigned to Seller.

In the event said evidence of title shows no title defects that moke Seller's title unmarketable. Buyer shall pay to Seller the purchase price within ten (10) days of receipt of said evidence of title, provided Seller's deed is then ready for delivery.

2. Real Estate Commissions - if any real estate broker or agent can establish a valid claim for commission or other compensation as a result of Buyer having used his services in connection with the purchase of the premises, all oF such commission or other compensation shall be paid by Buyer.

3. Liens of Seller's Mortgages - Seller shall place on record good and sufficient releases of the liens of Seller's mortgages, where required under the terms of any mortgage on the premises within one hundred twenty (120) days after the first meeting of Seller's Board of Directors held after the conveyance contemplated herein. In the event Seller shall be unable to obtain said releases within said one hundred twenty (120) days for any reason, the Seller shall hove the right on notice to terminate this agreement upon serving written notice of termination upon the Buyer within fifteen (15) days thereafter, and both parties shall thereupon be released and discharged from all liabilities and obligations hereunder, except that Seller shall repay to Buyer any and all sums theretofore paid by Buyer to Seller upon a reconveyance of title to the premises to Seller free and clear of defects or objections on account of the conveyance to Buyer pursuant to this agreement to the same extent as if no conveyance had been made to Buyer hereunder.

4. Other Liens - Any judgment against Seller which may appear of record as a lien against the premises shall be settled and satisfied by Seller if and when it is judicially determined to be finally valid, and Seller hereby indemnifies the Buyer for all loss arising out of Seller's failure to have said judgment lien so settled and satisfied.

5. Locally Assessed Taxes - if the premises ore locally assessed for the year in which the deed is delivered the general real estate taxes for said year shall be prorated by Seller and Buyer ai of the date on which the deed is delivered on the basis of the most recent tax bill unless the payment of same have been assumed by a tenant under an existing lease to be assigned to Buyer.

6. Tronsfer Taxes - As a part of the consideration hereof, and in accepting the conveyance herein provided for, the Buyer agrees to purchase, affix and cancel any and all documentary stamps in the amount prescribed by statute, and to pay any and all required transfer taxes and fees incidental to recordation of the conveyance instrument. In the event of Buyer's failure so to do; if the Seller shall be obliged so to do the Buyer shall be liable for all costs, expenses and judgments to or against the Seller, including all of Seller's legal fees and expenses and same shall constitute a lien against the premises to be conveyed until paid by the Buyer.

7. Notices and Demands - All notices, demands, elections, payments and other instruments required or permitted to be given or served by either party to/or upon the other shall be in writing and shall be deemed to have been sufficiently given or served by either party if sent by registered or certified mail, with proper postage prepaid, addressed to the other party at the address shown herein.

8. Governmental Approval - if the approval of any commission or any other governmental agency is required for the sale of the premises hereunder, it is understood and agreed that this agreement is subject thereto and that both parties shall use their best efforts to obtain such approval. The closing dote shall be extended for such period as may be required to obtain such approval with the use of due diligence. In the event said approval cannot be obtained, either party may terminate this agreement without liability to the other, except that Seller shall return the deposit to Buyer.

In the event a city, county, or any other governing authority wherein said real estate is located requires a survey or plat prepared by a registered surveyor, or has a subdivision ordinance, the Buyer shall obtain such survey or plat, all at Buyer's expense. The survey or plat shall be submitted by Buyer to Seller for approval prior to recording and within a period of thirty (30) days after the date of Seller's acceptance of this offer.

9. n«pr,tit Authorizotion - buyer hereby authorizes Seller to cash any checks that may be delivered to Seller as such deposit, and to take the amount of any such deposit into its accounts, with the understanding that it will riot constitute acceptance of this offer; provided, however, that such authorization is given with the undentandiiig that in the event the offer is not accepted as herein provided the Seller agrees to refund the amount of such deposit in full.

Form Q-SM '400-B (1/70) ADDENDUM PROVISIONS

LEASE AND 1. Irrespective of any provision(s) herein to the contrary, the Seller, any successors or assigns, shall not pay or LICENSE repay to the Buyer, any successors, assigns or designees, any prepaid and unearned lease or license rentals or other PREPAYMENT payments, unless such unearned rentals and other payments, for each such lease or license, shall exceed the sum LIMITATION of fifty (S50.00)dollors.

LEASE 2. As a condition of this offer Buyer agrees to keep rentals, taxes and other charges payable to the Seller under RENTAL the terms of Lease(s) R.E.VI. 13378 dated 7-1-59 ^Fully prepaid, with any refund or CONTINUANCE adjustment of same to be made on and as ot the date of conveyance of the premises. If any such lease shall include (BUYER'S a site only partially within the premises being purchased an appropriate apportionment shall be made of prepaid LEASES) rentals and other payments as between the portion(s) of the leased premises included in the premises and such portion(s) which extend beyond the boundaries of the premises.

LEASES *-****(*) ' wliese sites uie win ASSIGNED BY purchase site(s) and ore to be assigned to the Buyer, will be suhjnrt fn nppiii| liiilii llt^rnrtinnmrnt nt prrpniH rentals CONVEYANCE and other paymentsy pcy^hln *" '*' P |iii, 'iliy Micrnnnn, mtigm or designees, to be made on and as of the date of (BUYER'S AND cuiioeyuiKe ot the premisesi OTHERS)

LEASES TO BE Leeio(i) wliuse slius uie CANCELLED purchase litnfi), iivtiirh Piiyfr dniiirn tn hmm mm < lliil liy 'ii llfi, iliiill hr .in innrr Hi il li) 'mill i npnn the (BUYER'S conveyance of the premises, by 'iwlUr't

LEASES TO BE 5. Lease(s) R. E . W. 13578 dated 7-1-59 whose sites ore only partially within CANCELLED the purchase site(s). (JOINT lAND SITES) (a) In the name of the Buyer as lessee, shall terminate upon the conveyance of the premises, except as to such rights as may hove accrued to either party hereunder prior to such termination; and if

(b) In the nome of other(s) than the Buyer as lessee, shall be amended h> exclude that portion situated within the premises to be conveyed. Said amendment shall be effective as of the date of said conveyance. If Seller is unable or unwilling to amend said lease(s), such leases(s) shall be terminated at the earliest termination date after said conveyance.

with appropriate apportionment of prepaid rentals and other payments, payable to the Buyer, any successors, assigns or designees, to be made on and as of the date of conveyance of the premises and reflecting further apportionment(s) of prepaid rentals and other payments as between the portion(s) of the leased premises included in the purchase site and such portion(s) which extend beyond the boundaries of the purchase site.

Fofm Q-SP-'400-.O (5/68) ADDENDUM PROVISIONS

This offer coruisting of i^ page(s), and by Exhibit "A" doted July ik , 1970 attached hereteto and made a port hereof, has been made, signed and sealed it duplicate by the Buyer this 7^ day of Z7r-Z7tF7LX '9 70 •

(Buyer should clearly set forth full and correct names of party or parties to whom title will be conveyed, their address, their relationship if any, and whether conveyance is to be in joint tenancy or otherwise, and if a company, whether it is a partnership, trust, trustee or corporation, address of principal office and state of incorporation.)

Grantee's name as it is to appear on deed: _^

Street Address:

City & State: Zip Code

FARMERS GRAIN STORAGE, INC.

•John R-—Saborg, Prebl-d-ea^

P. 0. Box 2 32 ' Buyer's Street Address Hastings, Nebraska 68$01 ) City and State Zip Code Area- lf02 -Number- U62-57U7 Telephone

The foregoing offer is accepted by Seller this ^y*t^ day of ^Ttf^-fffK^f-Cyi^ , 19 70 •

ATTES

SECRETARY LkeeKkxMMXKtcicctXXMKtoioMi Vice President , li strial and Economic opment ApprovedTis tc

Form Q-SPI '400-C (1/70)