ACCEPTED 04-15-00534-CV FOURTH COURT OF APPEALS SAN ANTONIO, TEXAS 12/18/2015 4:46:17 PM KEITH HOTTLE CLERK NO. 04-15-00534-CV ___________________________________________________ FILED IN 4th COURT IN THE FOURTH COURT OF APPEALS AT SAN ANTONIO OF APPEALS SAN ANTONIO, TEXAS ___________________________________________________ 12/18/15 4:46:17 PM KEITH E. HOTTLE PATRICIA JO KARDELL, MARTIN MURPHY SNOWDEN, MICKEY Clerk DARRELL SNOWDEN AND MARY DELILLA SNOWDEN, Appellants, v. SWIFT ENERGY OPERATING, LLC, Appellee. ___________________________________________________ Appealed from the 218th Judicial District Court of La Salle County, Texas ___________________________________________________ APPELLANTS’ BRIEF ___________________________________________________ Gilbert Vara, Jr. State Bar No.: 20496250 & Richard J. Karam State Bar No.: 11097500 THE LAW OFFICE OF GILBERT VARA, JR. & LAW OFFICES OF RICHARD J. KARAM The Ariel House 8118 Datapoint Dr. San Antonio, Texas 78229-3228 Telephone: (210) 614-6400; Telecopy: (210) 614-6401 Emails: gilbert@varalaw.com & rjkaram@aol.com Attorneys for Appellants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden APPELLANTS REQUEST ORAL ARGUMENT IDENTITY OF PARTIES & COUNSEL Appellants: Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden Trial and Appellate Counsel: Richard J. Karam Law Offices of Richard J. Karam The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Email: rjkaram@aol.com Lead Appellate Counsel: Gilbert Vara, Jr. The Law Office of Gilbert Vara, Jr. The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Email: gilbert@varalaw.com Appellees: Elaine V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shella Acker (Reinke) Bonner, Edwin Scott Acker Trial Counsel: Wilson Calhoun Law Office of Wilson Calhoun 719 Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 Telephone: (361) 882-3300 Telecopy: (361) 888-5404 Email: Wilson@wcalhoun.com Lead Appellate Counsel: Audrey Mullert Vicknair i Law Office of Audrey Mullert Vicknair 802 N. Carancahua, Suite 1350 Corpus Christi, Texas 78401-0022 Telephone: (361) 888-8413 Telecopy: (361) 888-6207 Email: avicknair@vicknairlaw.com ii TABLE OF CONTENTS IDENTITY OF PARTIES & COUNSEL ........................................................... i INDEX OF AUTHORITIES ........................................................................... .v STATEMENT ON ORAL ARGUMENT ........................................................vii STATEMENT OF THE CASE ..................................................................... .viii ISSUE PRESENTED ........................................................................................ x ISSUE NUMBER ONE Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor’s intent.............. x STATEMENT OF FACTS ................................................................................. 1 Nature Of The Appeal ..................................................................................... 1 Procedural History ........................................................................................ 2 Substantive Facts ............................................................................................5 Murphy Partition Deeds and Estate Plan .......................................................5 Conveyance/Re-Conveyance of Snowden Ranch Royalty Interests.............. 8 This Court of Appeals previously interpreted the 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD, and the 1953 Declaration and Agreement .......................................................................... 13 The instant Royalty Interest Dispute is Limited to Mabel Snowden Heirs and Johnie Acker Heirs ................................................................................. 15 STANDARDS OF REVIEW ........................................................................... 16 iii SUMMARY OF THE ARGUMENT ............................................................... 17 ISSUE NUMBER ONE (RESTATED) Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor’s intent............ 18 ARGUMENT AND AUTHORITIES .............................................................. 18 The Mabel Snowden Heirs Met Their Burden of Proof ............................... 18 1. Documents are Unambiguous .................................................................. 20 2. Winslow v. Acker: The declaration of rights in this prior appeal constitutes Res Judicata and/or Collateral Estoppel to the issues in the instant appeal ................................................................................................ 21 3. Attorneys' Fees - Declaratory Judgment ................................................. 28 CONCLUSION AND PRAYER ..................................................................... 28 CERTIFICATE OF SERVICE ....................................................................... 30 APPENDIX .................................................................................................... 31 iv INDEX OF AUTHORITIES CASES Altman v. Blake, 712 S.W.2d 117 (Tex.1986)………………………………………………………….. .........27 Amstadt v. U.S. Brass Corp., 919 S.W.2d 644 (Tex.1996) .......................................................................... 21 Barr v. Resolution Trust Corp., 837 S.W.2d 627 (Tex.1992) .......................................................................... 21 Bonniwell v. Beech Aircraft Corp., 663 S.W.2d 816 (Tex.1984) .......................................................................... 21 Cathey v. Booth, 900 S.W.2d 339 (Tex.1995) .......................................................................... 16 City of Keller v. Wilson, 168 S.W.3d 802 (Tex.2005) ......................................................................... 17 Comm’rs Court of Titus County v. Agan, 940 S.W.2d 77 (Tex.1997) ....................................................................... 16, 17 Harris v. Windsor, 156 Tex. 324, 294 S.W.2d 798 (Tex.1956) .....................................………24, 25 Hausser v. Cuellar, 345 S.W.3d 462 (Tex.App.–San Antonio 2011, pet. denied).................. ……….…….....22, 23 Johnson v. Brewer & Pritchard, P.C., 73 S.W.3d 193 (Tex.2002)....................................................................….......17 Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App–San Antonio 1989, writ denied) ......15, 19, 22, 27 v Luckel v. White, 819 S.W.2d 459 (Tex.1991) ...................................................................….....20 Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844 (Tex.2009) ............................................................. ............ 17 Myrad Properties, Inc. v. La Salle Bank Nat. Ass’n, 300 S.W.3d 746 (Tex.2009) ................................................................. ....... 25 Neel v. Killam Oil Co., Ltd., 88 S.W.3d 334 (Tex.App.—San Antonio 2002, pet. denied) ..................... ..23 Nelson’s Legal Investigating & Consulting v. Myrick, No. 04-11-00158-CV, 2011 WL 6090082 (Tex.App.—San Antonio Dec. 7, 2011, no pet.) (mem. op.) ..................... .... 17 Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211 (Tex.2003) ........................................................................... 17 Stewart & Title Guar. Co. v. Aiello, 941 S.W.2d 68 (Tex.1997) ........................................................................... .20 TEXAS STATUTES TEX. CIV. PRAC. & REM. CODE ANN. § 37.004 (West 2007) ........................... 28 TEX. CIV. PRAC. & REM. CODE ANN. § 37.009 (West 2007) ........................... 28 TEXAS RULES TEX. R. APP. P. 4 (e) ....................................................................................... 30 TEX. R. APP. P. 9.5 (a) .................................................................................... 30 TEX. R. APP. P. 166a (c) .................................................................................. 17 TEX. R. APP. P. 39.1 (c) ...................................................................................vii TEX. R. APP. P. 39.1 (d) ...................................................................................vii TEX. R. APP. P. 39.1 (e) ...................................................................................vii vi STATEMENT ON ORAL ARGUMENT The court of appeals should grant oral argument for the following reasons: a. Oral argument would give the court a more complete understanding of the facts presented in this appeal as the presentation would illustrate the purpose and scope of the numerous conveyances. See TEX. R. APP. P. 39.1 (c). b. Oral argument would significantly aid the court of appeals in deciding this case as the presentation would allow direct answers to the use and limits of prior incorporated conveyances in a deed. TEX. R. APP. P. 38.1 (e), 39.1 (d). vii STATEMENT OF THE CASE Nature of the Case: The dispute emanates from a series of deeds commencing in 1948 when the parties’ common ancestor, J.E. Murphy, put into effect an estate plan where his descendants would share, to some extent, royalties produced on each of their respective lands. On December 1, 2009, Swift Energy Operating, LLC, Lessee, and Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell, Snowden, and Mary Delilla Snowden, as Lessor, (“the Mabel Snowden Heirs”), executed a certain Oil, Gas & Mineral Lease, (“Swift Lease”). The Swift Lease provided a 25% royalty to the mineral estate owners. The Mabel Snowden Heirs contend that Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker, George, Shella Acker Reinke, and Edwin Scott Acker, (“the Johnie Acker Heirs”), are entitled to only an undivided 1/5th of 1/8th royalty interest (or 1/5th x 12.5% royalty) under the Swift Lease, or, stated differently, 2.5% out of the 25.0% royalty interest. The Johnie Acker Heirs, contend that they are entitled to 1/5th of 1/4th royalty interest (or 1/5th x 25% royalty) under the Swift Lease, i.e., 5% out of the 25% royalty interest. Inexplicably, Swift Energy Operating, LLC, withheld 7-1/2% of the royalties under the Swift Lease, rather than the 2.5% in dispute. Trial Judge: Honorable Donna S. Rayes, 218th Judicial District Court, LaSalle County, Texas Judgment: On May 30, 2013, the Mabel Snowden Heirs filed their Motion for Summary Judgment with attached viii exhibits. (CR 17-276) On May 31, 2013, the Johnie Acker Heirs filed their motion for summary judgment with exhibits. (CR 277-331) On June 20, 2013, Swift Energy filed its response to the respective motions for summary judgment filed by the Snowdens and the Ackers. (CR 447-593) On June 20, 2013, the Mabel Snowden Heirs filed their response to the motion for summary judgment filed by the Johnie Acker Heirs which Swift Energy corrected in a June 25, 2013 filing. (CR 594 & 600) On July 2, 2013, the Johnie Acker Heirs filed supplemental briefing regarding their motions for summary judgment. (CR 604) On July 3, 2013, the Mabel Snowden Heirs filed their response to the supplemental briefing. (CR 608) On October 22, 2013, in a letter ruling filed on October 25, Judge Stella Saxon granted the motion for summary judgment filed by the Johnie Acker Heirs. (CR 613) On April 3, 2014, the trial court entered its Order granting the motion for summary judgment filed by the Johnie Acker Heirs and denying the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 640) On July 21, 2015, Judge Donna S. Rayes entered final judgment for the Johnie Acker Heirs. (CR 654) On August 19, 2015, the Mabel Snowden Heirs filed their joint notice of appeal. (CR 673) ix ISSUE PRESENTED FOR REVIEW ISSUE NUMBER ONE Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor’s intent. x TO THE HONORABLE COURT OF APPEALS: Appellants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden, (“the Mabel Snowden Heirs”), submit their Appellants’ Brief and respectfully show: STATEMENT OF FACTS1 Nature Of The Appeal This appeal concerns the construction of a certain “Correction Warranty Deed” and the intent of the grantor when considered together with the provisions of other specific documents referenced therein. The Mabel Snowden Heirs maintain that the trial court must consider and incorporate all provisions of the documents expressly referenced in the Correction Warranty Deed, as well as the circumstances surrounding the execution of the Correction Warranty Deed, in order to correctly interpret it and the grantor’s intent. In doing so, the proper construction to be given the Correction Warranty Deed clearly would show that the grantor did not intend to re-convey more property to the grantee than what was originally received by the grantor. Furthermore, the intent and purpose of the Correction Warranty Deed is, and was, to describe the interest being re- 1 The Index for the Clerk’s Record has incorrect filing dates and typographical errors. References in Appellants’ Brief shall be to the file-stamped pleadings and not the Index. 1 conveyed in terms of a “non-participating royalty interest” rather than a “mineral interest” with reservations. The Johnie Acker Heirs maintain, to the contrary, that the Correction Warranty Deed should be read without regard to the referenced prior 1965 deed that it corrected in order to grant them more than what was originally given to Mabel Snowden. This Court of Appeals, in a previous related case involving the same parties, interpreted these same mineral conveyances. Consequently, the intent and character of the interests being conveyed is clear as to the conveyances referenced in this appeal. Accordingly, this Court should reverse the summary judgment granted in favor of the Johnie Acker Heirs and render summary judgment in favor of the Mabel Snowden Heirs. Procedural History On June 21, 2012, Swift Energy filed Plaintiff’s Original Petition in Interpleader.2 (CR 001-010) On July 30, 2012, the Mabel Snowden Heirs filed their original answer, original counterclaim, and cross-action in interpleader. (CR 017-047) On July 30, 2012, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and 2 Various parties, who are not parties to this appeal, filed original answers. (CR 011, 012, 016, 055) 2 Edwin Scott Acker, (“the Johnie Acker Heirs”), filed their original answer and cross-claim. (CR 048-053) On May 30, 2013, the Mabel Snowden Heirs filed their Motion for Summary Judgment with attached exhibits. (CR 056-276; App. 14) On May 31, 2013, the Mabel Snowden Heirs filed their first amended original answer, first amended original counterclaim, and first amended cross- action in interpleader. (CR 332-362) On May 31, 2013, the Johnie Acker Heirs filed their motion for summary judgment with exhibits. (CR 277-331; App. 16) On June 18, 2013, the Johnie Acker Heirs filed their original answer to the Mabel Snowden Heirs first amended cross-claim (CR 363- 364) and their response to the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 365-46; App. 15) On June 20, 2013, Swift Energy filed its response to the respective motions for summary judgment filed by the Mabel Snowden Heirs and the Johnie Acker Heirs. (CR 447-593 App. 17) On June 20, 2013, the Mabel Snowden Heirs filed their response to the motion for summary judgment filed by the Johnie Acker Heirs. (CR 594-599; App. 18) On June 25, 2013, Swift Energy filed its correction. (CR 600-603; App. 19) On July 2, 2013, the Johnie Acker Heirs filed supplemental briefing regarding their motions for summary judgment. (CR 604-607; App. 20) On 3 July 3, 2013, the Mabel Snowden Heirs filed their response to the supplement. (CR 608-612; App. 21) On October 22, 2013, in a letter ruling filed on October 25, Judge Stella Saxon granted the motion for summary judgment filed by the Johnie Acker Heirs. (CR 613; App. 22) On March 18, 2014, counsel for the Johnie Acker Heirs filed an affidavit of authentication of business records concerning attorneys’ fees. (CR 614-628 & 629-637; App.23) On April 3, 2014, the trial court entered its Order granting summary judgment for the Johnie Acker Heirs and denying the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 640-649; App. 2) On May 1, 2015, the Johnie Acker Heirs filed a notice of non-suit of their claims against the following defendants: Lola Mae Akers, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Pamela Boss, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunger, Lourene Yvonne Woodall Vance, Sharon L. Williams, and Daniel Wilson. (CR 650-651) On May 4, 2015, the trial court granted the non-suit. (CR 639) On July 21, 2015, Judge Donna S. Rayes entered final judgment. (CR 654-672; App. 1) On August 19, 2015, the Mabel Snowden Heirs filed their joint notice of appeal. (CR 673-698) On August 25, 2015, the Clerk’s Record 4 was requested by the Mabel Snowden Heirs and it was filed on August 26. (CR 699-705; 706) Substantive Facts Murphy Partition Deeds and Estate Plan J. E. Murphy, now deceased, had five (5) children: (i) Mabel M. Snowden, (ii) Johnie Lorene Acker, (iii) Edna Mae Jones, (iv) Julia Authelia Akers, (v) Emmett Granvel Murphy. The Mabel Snowden Heirs are the children of Mabel M. Snowden. The Johnie Acker Heirs are the heirs of Johni Lorene Acker. J. E. Murphy owned four (4) separate ranches prior to his death. Upon his death, his 5 children owned undivided interests in each of the ranches, including the entire mineral estate. In accordance with the estate planning wishes of J. E. Murphy, all 5 children executed 4 deeds on October 21, 1948 partitioning the surface estates of the 4 ranches to his 4 children excluding Mabel M. Snowden. In lieu of conveying a ranch to Mabel M. Snowden, she received cash of equal value since Mabel M. Snowden had previously acquired a ranch in 1945 in Dimmit and La Salle Counties. (CR 71-88; App. 3) (CR 089-094; App. 4) Each of the four separate surface deeds to the four children, (“1948 Murphy Estate Partition Deeds”), provides as follows: 5 “ … the parties (the 5 children) shall continue to own and hold in common all of the oil, gas, and other minerals in the same undivided proportion …. it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate … shall have the exclusive right to execute … mineral lease(s) … and receive, as (his/her) separate property, such bonuses, oil payments, and rentals as may be paid under said .. mineral leases … except that (he/she) shall reserve in each …. mineral lease … a base one-eighth (1/8) royalty interest for the benefit of (herself/himself) and the other four children .. in the same proportion they now own same.” (CR 71-88; App. 3) Six days thereafter, on October 27, 1948, Mabel M. Snowden executed a Non-Participating Mineral Deed, (“1948 Snowden NPMD”), in connection with her existing ranch in Dimmitt and LaSalle Counties, (the “Snowden Ranch”). In furtherance of the estate planning design of J. E. Murphy, the 1948 Snowden NPMD conveyed an undivided four-fifths (4/5) interest in and to 1/8th of the royalty from all oil, gas and minerals in and under the Snowden Ranch to the 4 siblings of Mabel M. Snowden. The 1948 Snowden NPMD specifically contained a reservation identical in substance as the 1948 Murphy Estate Partition Deeds, to-wit: “It is further agreed that Grantees [the other four siblings] shall have no interest in any bonus money or oil payment above the one-eighth (1/8th) royalty received by the Grantors in any future lease or leases given on said land and that it shall not be necessary for the Grantees to join in any such lease or leases so made; that Grantees shall receive under such lease or leases four-fifths (the same being one-fifth (1/5th) to each Grantee) part of all the oil, gas and other minerals taken and saved under any such lease or leases and he or she shall receive the same out of the royalty provided for in such lease or leases, but Grantees shall have no part in the 6 annual rentals paid to keep such lease or leases in force until drilling is begun.” (CR 095-100; App. 5) (emphasis added) Mabel M. Snowden thereby conveyed only a fixed 1/5th of 1/8th royalty to each of her four siblings, including Johnie Lorene Acker, in the Mabel Snowden NPMD. (CR 095-100; App. 5) In 1953, the five siblings wanted confirmation from each other as to the estate planning intent of their father and, in particular, their respective rights as surface owners to the mineral estate on their lands. (CR 101-106; App. 6) Accordingly, on December 9, 1953, Johnie Lorene Acker and Mabel Mullen Snowden, as well as the other siblings, executed a recordable declaration and agreement, (“Declaration & Agreement”), confirming to each other as follows: “[We] hereby declare, that in making the division of the property in the Estate of J. E. Murphy, deceased, it was the intention of said parties to grant to the party receiving the surface, the right to receive all rentals from oil, gas and mineral leases then on said land so granted and to receive all bonuses and rentals on leases that might thereafter be made by the party to whom the surface was conveyed by Special Warranty Deed, provided, however, that the Lessor in said oil, gas and mineral lease, so executed by him or her, should reserve, in each oil, gas and mineral leases so executed, a basic one-eighth (1/8) royalty interest ..... for the benefit of the Lessor and the other children of J. E. Murphy, deceased, and those claiming under said children or child ....... (CR 101-106; App. 6) (emphasis added). 7 Conveyance/Re-Conveyance of Snowden Ranch Royalty Interests On or about December 31, 1953, Mabel M. Snowden sought to borrow money against the Snowden Ranch. (CR 107-110; App. 7) As a condition of the loan, the bank required that Mabel M. Snowden own at least three- fifths (3/5ths) of the mineral interest in the Snowden Ranch. (CR 107-110; App. 7) At that time, she only owned 1/5th of 1/8th royalty interest together with all rights to the minerals and production over and above the 4/5ths of 1/8th royalty conveyed to her siblings. Consequently, at Mabel M. Snowden’s request, Johnie Lorene Acker and Virginia Gertrude Akers Murphy, (being the surviving wife of Emmett Granvel Murphy and sole devisee under his Last Will and Testament), conveyed to Mabel M. Snowden their respective one-fifth (1/5) of said 1/8 royalty interests in the Snowden Ranch by Royalty Deed dated December 31, 1953, so that Mabel M. Snowden then owned a total of three-fifths (3/5) of said base (or basic) royalty interest in the Snowden Ranch together with all rights to the minerals and production therefrom over and above the remaining 2/5ths of 1/8th royalty in favor of her other siblings, (“1953 Royalty Deed”). (CR 107- 110; App. 7) When Mabel M. Snowden paid the note to the bank, she re-conveyed the same royalty interest back to Johnie Lorene Acker on March 25, 1965 by 8 instrument, (“1965 Mineral Deed”), that provided: [Mabel M. Snowden] granted and conveyed to Johnie Lorene Acker an .... “undivided one-fifth (1/5th) interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas.” (CR 111-114; App. 8) The royalty interest of Virginia Gertrude Akers Murphy was, by agreement, retained by Mabel M. Snowden as part of the Mabel M. Snowden estate. (CR 111-114; App. 8) In or about 1980, a title search was conducted on the Snowden Ranch by a prospective oil and gas lessee. (CR 115-120; App. 9) In that process, it became desirable to express the re-conveyance to the Johnie Acker Heirs in terms of a non-participating royalty interest, (“NPRI”), rather than a mineral interest with reservations. (CR 115-120; App. 9) Consequently, Mabel M. Snowden and Johnie Lorene Acker agreed to correct and clarify the 1965 Mineral Deed to express the conveyance in terms of an NPRI. (CR 115-120; App. 9) Therefore, on or about June 24, 1980, (but effective as of March 25, 1965), a Correction Warranty Deed was prepared and executed that stated, in pertinent part: 9 “in place of and as a Deed of Correction” to the March 25, 1965 deed “wherein by error or mistake, Grantors conveyed to Grantee an undivided one-fifth (1/5th) mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantor should have conveyed an undivided non-participating 1/5th of the whole and entire royalty interest, ….” (CR 115-120; App. 9) On December 1, 2009, the Mabel Snowden Heirs executed an oil and gas lease with Swift Energy, (the “Swift Lease”), which provided a 25% royalty to the mineral estate owners. (CR 121-159; App. 10) When Swift circulated a division order to the mineral owners, the Johnie Acker Heirs asserted that they were enitled to 1/5th of ¼ (25%) of the royalties under the Swift Lease rather than 1/5th of 1/8th as set forth in the 1948 Snowden NPMD. The claim caused Swift to suspend royalty payments and the institution of the present interpleader lawsuit. In the lawsuit, the Johnie Acker Heirs, contend that the 1965 Mineral Deed, as corrected in 1980, entitles them to 1/5 share of the 25% royalties under the Swift Lease, not just the 1/5 of 1/8th (12.5% of the royalties) as provided in the original 1948 Mabel Snowden NPMD. (CR 111-114; App. 8) (CR 115-120; App. 9) The Mabel Snowden Heirs, on the other hand, maintain that the 1948 Mabel Snowden NPMD and the succeeding conveyances, all of which were incorporated into the 1980 Correction Deed, express the clear intent to 10 convey only an undivided 1/5th of 1/8th royalty interest (1/5th x 12.5% royalty) to each of the siblings and their heirs, including the Johnie Acker Heirs, while reserving to the surface owner, the Mabel Snowden Heirs, all royalty and incidents of the mineral estate above that amount. (CR 115-120; App. 9) The Mabel Snowden Heirs’ interpretation has clear support under the 1948 Murphy Estate Partition Deeds, the 1948 Snowden NPMD, and subsequent conveyance documents: First, the 1980 Correction Warranty Deed, the 1965 Mineral Deed, and the 1953 Royalty Deed each refer back to the interests conveyed by the 1948 Snowden NPMD. (CR 115-120; App. 9) (CR 111-114; App. 8) (CR 107- 110; App. 7) (CR 095-100; App. 5) The 1948 Snowden NPMD restricts the conveyance to the four siblings to only a portion of the mineral interest, that being an undivided one-fifth (1/5th) of one-eighth (1/8th) royalty, reserving all other aspects of the mineral estate to the Mabel Snowden Heirs. (CR 095-100; App. 5) Second, the 1980 Correction Warranty Deed clearly states in relevant part: “This Deed is made in place of and as a Deed of Correction of [the 1965 Mineral Deed] wherein by error or mistake, Grantors conveyed to Grantee an undivided 1/5th mineral interest in and to all of the oil, 11 gas and other minerals, when in truth and fact Grantors should have conveyed an undivided non-participating 1/5th of the whole and entire royalty interest, and this instrument …, in all other respects confirming said former Deed .....” (CR 115-120; App. 9) (emphasis added) Consequently, when reading the 1965 Mineral Deed together with the the 1980 Correction Warranty Deed results in the following construction: Mabel M. Snowden conveys to Johnie Lorene Acker: “an undivided non-participating one-fifth (1/5) of the whole and entire royalty interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas.” (CR 111-114; App. 8) (emphasis added) Third, it is irrefutable that the December 31, 1953 Deed from Johnie Lorene Acker to Mabel M. Snowden, conveyed “all of the interest previously conveyed by Mabel M. Snowden to Johnie Lorene Acker … by Deed dated October 27, 1948 .... (i.e. the 1948 Snowden NPMD)” (CR 107-110; App. 7) Fourth, the 1948 Snowden NPMD makes it absolutely clear that Johnie Lorene Acker and the other siblings received no interest in any “oil payment above the one-eighth (1/8th) royalty received by the Grantors in any future lease or leases.” (CR 095-100; App. 5) None of the other heirs contested this fact and indeed the subject Final Judgment entered in this 12 case resolves any issues concerning same. Fifth, the Declaration and Agreement executed by the parties on December 9, 1953 makes it absolutely clear that the siblings and their heirs are to receive only an undivided 1/5th of “a basic one-eighth (1/8) royalty interest” from the other siblings’ mineral estate. (CR 101-106; App. 6) Accordingly, the “whole and entire royalty interest” language contained in the 1980 deed must be construed with reference to the 1965 Mineral Deed and constitutes a reference to the entire base (or basic) 1/8th royalty, as consistently set forth in the family’s series of deeds and declarations in 1948, 1953 and 1965 describing the royalty held in common by the five Murphy siblings and their heirs and assigns. (CR 095-100; App. 5) (CR 101-106; App. 6) (CR 107-110; App. 7) (CR 111-114; App. 8) (CR 115- 120; App. 9) This Court of Appeals previously interpreted the 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD, and the 1953 Declaration and Agreement In 1988, a lawsuit was filed to determine the intent and terms of the shared family royalty interest between the Johnie Acker Heirs, Julia Authelia Akers (known at that time as Julia Authelia Winslow), and Mabel M. Snowden and some of her heirs. (CR 247-252; App. 12) In that dispute, the Johnie Acker Heirs had entered into several oil and gas leases on the 13 Acker ranch whereby overriding royalties were conveyed to Edwin Acker, Jr. (CR 247-252; App. 12) The plaintiffs in the 1988 lawsuit (being Julia Authelia Winslow, Mabel M. Snowden and others) felt that they were entitled to share in the overriding royalties in addition to their respective undivided 1/5th of 1/8th royalty interests in the Acker ranch. (CR 247-252; App. 12) The Johnie Acker Heirs contended that the terms “base one-eighth (1/8) royalty interest” [in the four 1948 Murphy Estate Partition Deeds] and “above the one-eighth (1/8) royalty” [in the 1948 Snowden NPMD], and “basic one- eighth (1/8) royalty interest” in the 1953 Declaration and Agreement, limited the Winslow and Snowden interests to only 1/5 each of a 1/8 royalty. (CR 247-252; App. 12) They were correct. The trial court reviewed the language in the four 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD to her four siblings and the 1953 Declaration and Agreement, and interpreted all of the reservations and restrictions contained therein (construing their different language together) as limiting the four other Murphy siblings’ non- executive interests to only four-fifths (4/5ths) of a one-eighth (1/8th) royalty – that is, an undivided 1/5th of 1/8th royalty interest to each of the five children of J. E. Murphy. (CR 253-272; App. 13) 14 The judgment of the court was appealed. (CR 247-252; App. 12) This honorable court of appeals upheld the trial court’s judgment. Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App–-San Antonio 1989, writ denied). (CR 247-252; App. 12) The instant Royalty Interest Dispute is Limited to Mabel Snowden Heirs and Johnie Acker Heirs The other Defendants named in this case, to-wit, the Edna Mae Jones Heirs and the Julia Authelia Winslow Heirs, do not contest the division of royalties under the Swift Lease as interpreted by the Mabel Snowden Heirs and, in fact, many executed and delivered Division Orders to Swift Energy reflecting the division as set forth by the Mabel Snowden Heirs, (“Division Orders”). (CR 160-246; App. 11) Notwithstanding the fact that there was no dispute among the Mabel Snowden Heirs, the Edna Mae Jones Heirs, and/or the Julia Authelia Winslow Heirs, Swift Energy wrongfully withheld and suspended Seven and One-Half (7 ½%) percent of the royalties from the Swift Lease, when it should have only withheld and suspended Two and One-Half (2 ½%) Percent, i.e., the difference between what the the Mabel Snowden Heirs contend that the Johnie Acker Heirs are entitled to receive - an undivided 1/5th of 1/8th royalty interest (1/5th x 12.5%), and what the Johnie Acker 15 Heirs contend that they are entitled to receive - an undivided 1/5th of 1/4th royalty interest (1/5th x 25%) under the Swift Lease. This dispute amounts to 2-½% royalty interest, not 7-½%. However, after Summary Judgment was granted to the Johnie Acker Heirs, Swift Energy unilaterally released 5% of the suspended royalties to the Mabel Snowden Heirs and final Judgment in this case disposes of all issues with Swift Energy. Hence, this appeal is limited to the dispute between the Johnie Acker Heirs and the Mabel Snowden Heirs over the suspended 2-1/2% royalties and future royalties under the Swift Lease, and the construction of the subject deed conveyances. STANDARDS OF REVIEW When both sides move for summary judgment and the trial court grants one motion and denies the other, as at bar, summary judgment evidence presented by both sides is reviewed and this honorable court of appeals determines all questions presented. Comm’rs Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997). Furthermore, as in the instant case where the Mabel Snowden Heirs have pleaded the affirmative defense of Res Judicata and Collateral Estoppel, a movant who conclusively establishes all of the elements of an affirmative defense is entitled to summary judgment. Cathey v. Booth, 900 S.W.2d 339, 341 (Tex.1995). 16 Summary judgment is reviewed de novo. Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex.2003). Evidence presented in the motion and response are analyzed in the light most favorable to the party against whom the summary judgment was rendered, crediting evidence favorable to that party if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not. See City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex.2005); Johnson v. Brewer & Pritchard, P.C., 73 S.W.3d 193, 208 (Tex.2002). The party moving for traditional summary judgment bears the burden of showing no genuine issue of material fact exists and it is entitled to judgment as a matter of law. See also Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009) (citing Comm’rs Court of Titus County, 940 S.W.2d at 81); see also Provident Life & Accident Ins. Co., 128 S.W.3d at 216; see also Nelson’s Legal Investigating & Consulting v. Myrick, No. 04-11-00158-CV, 2011 WL 6090082, at *2 (Tex.App.—San Antonio Dec. 7, 2011, no pet.) (mem. op.); TEX.R.CIV.P. 166a(c). SUMMARY OF THE ARGUMENT In the instant case, the Mabel Snowden Heirs have demonstrated that they are entitled to a declaration setting forth their rights under the 17 competent summary judgment evidence in support of their motion for summary judgment and, in particular, are entitled to a declaration that the Johnie Acker Heirs are only entitled to an undivided non-participating 1/5th of 1/8th royalty in and under the Swift Lease. The trial court had ample summary judgment proof to grant summary judgment in favor of the Mabel Snowden Heirs. ISSUE NUMBER ONE (RESTATED) Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor’s intent. ARGUMENT AND AUTHORITIES The Mabel Snowden Heirs Met Their Burden Of Proof In support of their motion for summary judgment, the Mabel Snowden Heirs attached the following competent summary judgment proof: Exhibit 1: 1948 Murphy Estate Partition Deeds (Certified Copies): (i) Johnie L. Acker, Partition Deed, Vol. 43, Pg 218, McMullen County Deed Records, Filed: Oct. 27, 1948; (ii) Edna M. Jones, Partition Deed, Vol. 43, Pg 221, McMullen County Deed Records, Filed: Oct. 27, 1948; (iii) Emmett G. Murphy, Partition Deed, Vol. 44, Pg 30, McMullen 18 County Deed Records, Filed: Oct. 27, 1948; (iv) Julia A. Ackers, Warranty Deed, Vol. K-4, Pg 313, La Salle County Deed Records, Filed: Oct. 27, 1948. Exhibit 2: Green Martin, General Warranty Deed, Vol. D-4, Pg. 53-55, La Salle County Deed Records, Filed: Oct. 1, 1945 (Certified Copy). Exhibit 3: 1948 Snowden NPMD Non-Participating Mineral Deed, Vol K-4, Pg. 311, La Salle County Deed Records, Filed: Oct. 27, 1948 (Certified Copy). Exhibit 4: 1953 Declaration & Agreement Declaration & Agreement, Vol X-4, Pg. 350, La Salle County Deed Records, Filed: Dec. 18, 1953 (Certified Copy). Exhibit 5: 1953 Royalty Deed Royalty Deed, Vol X-4, Pg. 355, La Salle County Deed Records, Filed: Dec. 31, 1953 (Certified Copy). Exhibit 6: 1965 Mineral Deed Mineral Deed; Vol 135, Pg. 135, La Salle County Deed Records, Filed: April 14, 1965 (Certified Copy). Exhibit 7: 1980 Correction Deed Correction Warranty Deed, Vol 225, Pg. 246, La Salle County Deed Records, Filed: July 8, 1980 (Certified Copy). Exhibit 8: Swift Energy Lease Oil and Gas Lease dated December 1, 2009; Swift Energy Production Exhibit 9: Division Orders; Swift Energy Production Exhibit 10: Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App–San Antonio 1989, writ denied). Exhibit 11: Cause No. 1013-C, Julia Winslow et al v. Edwin V. Acker et al, in the 343rd Judicial District Court, McMullen County, Texas (Certified Copies of the following orders and pleadings): 19 Final Judgment Defendants’ Motion for Summary Judgment Plaintiffs’ Response to Defendants’ Brief in Support of Defendants’ Motion for Summary Judgment Defendants’ First Amended Original Answer and Counterclaim Plaintiffs’ First Amended Original Petition Exhibit 12: Affidavit of Richard J. Karam Affidavit of Michael L. McReynolds 1. Documents are Unambiguous A contract or deed that can be given a definite or certain legal meaning is not ambiguous. See Stewart & Title Guar. Co. v. Aiello, 941 S.W.2d 68, 74 (Tex.1997). The construction of an unambiguous deed is a question of law for the court. Luckel v. White, 819 S.W.2d 459, 461 (Tex.1991). The primary duty of a court when construing deeds that are unambiguous is to ascertain the intent of the parties from all of the language as contained in the four corners of the relevant the deeds. Id. Neither party contends that the deeds in this case are ambiguous. The Mabel Snowden Heirs contend that when the Court construes the documents attached to their Motion, the intent of the parties is clear and certain that only an undivided 1/5th of 1/8th royalty interest was conveyed to the Johnie Acker Heirs. Indeed, the other Murphy siblings who are named defendants in the lawsuit recognize this truth by not contesting the issues and by the execution and delivery of Division Orders consistent 20 therewith. 2. Winslow vs. Acker: The declaration of rights in this prior appeal constitutes Res Judicata and/or Collateral Estoppel to the issues in the instant appeal. Res Judicata precludes re-litigation of claims that have been finally adjudicated or that arise out of the same subject matter and could have been litigated in the prior action. Barr v. Resolution Trust Corp., 837 S.W.2d 627, 628 (Tex.1992). Res Judicata requires proof of the following elements: (1) a prior final judgment on the merits by a court of competent jurisdiction; (2) identity of parties or those in privity with them; and (3) a second action based on the same claims as were raised or could have been raised in the first action. Amstadt v. U.S. Brass Corp., 919 S.W.2d 644, 652 (Tex.1996). Collateral Estoppel precludes re-litigation of any ultimate issue of fact actually litigated and essential to the judgment in a prior suit. Bonniwell v. Beech Aircraft Corp., 663 S.W.2d 816, 818 (Tex.1984). The doctrine applies when the party against whom Collateral Estoppel is asserted had a full and fair opportunity to litigate the issue in the prior suit. Id. In Winslow v. Acker, this honorable court of appeals reviewed the language in the 1948 Murphy Estate Partition Deeds, the 1948 Snowden 21 NPMD, and the 1953 Declaration and Agreement. Julia Authelia Winslow, 781 S.W.2d at 322-26. (CR 247-252; App. 12) In so doing, the court of appeals interpreted all of the reservations and restrictions contained therein (construing their differing language together) as limiting the four other Murphy siblings’ non-executive interests, including the Johnie Acker Heirs, to only four-fifths (4/5ths) of a one-eighth (1/8th) royalty – that is, an undivided 1/5th of 1/8th royalty interest to each of the children of J. E. Murphy. Julia Authelia Winslow, 781 S.W.2d at 327. (CR 247-252; App. 12) Therefore, the trial court’s declaration regarding the deeds in Winslow v. Acker constitutes Res Judicata and/or Collateral Estoppel to the limitations of the mineral grant from Mabel M. Snowden to her four siblings and their heirs, i.e., each would receive 1/5th of 1/8th of the royalties and no more. See Julia Authelia Winslow, 781 S.W.2d at 327-328. (CR 247-252; App. 12) In their supplemental briefing in support of their motion for summary judgment, the Johnie Acker Heirs misinterpret the law when they cite the decision in Hausser for the proposition that the trial court is prohibited from examining prior conveyances when construing a deed. (CR 604-607; App. 20); Hausser v. Cuellar, 345 S.W.3d 462, 470-71 (Tex. App.–San Antonio 2011, pet. denied). 22 In Hausser, the deed under scrutiny did not reference a prior conveyance. The conveying language in Hausser provided as follows: Grantors] have GRANTED, SOLD, CONVEYED, ASSIGNED AND DELIVERED, and by these presents do GRANT, SELL, ASSIGN, CONVEY AND DELIVER unto the said Grantees, Share and share alike, an undivided (1/2) interest in and to all of the oil royalty, gas royalty, royalty in casinghead gas and gasoline, and royalty in other minerals in and under, and that may be produced and mined from the following described land situated in the County of Zapata and State of Texas, to wit: ..... Id. at 467. The majority of the court of appeals in Hausser emphasized that when a deed is unambiguous on its face, it would be improper to look back at prior conveyances for interpretation disapproving of the decision of Neel. Id. at 470 (citing Neel v. Killam Oil Co., Ltd., 88 S.W.3d 334, 340-41 (Tex.App.— San Antonio 2002, pet. denied)). However as explained by Justices Marion and Hilbig in their dissent in Hausser, the majority misreads Neel because the examination of the prior deed in Neel was merely to confirm the conclusion, not to create it. Hausser, 345 S.W.3d at 472 (dissent). The Mabel Snowden Heirs agree with both principles of law that an unambiguous deed should be read to harmonize and give effect to all its provisions by ascertaining the intent from the four corners of the document and that in certain cases, such as the appeal at bar, where a deed references the intent – not creates it – it is appropriate to look to prior referenced 23 conveyances. At bar, the 1965 Mineral Deed from Mabel M. Snowden to Johnie Lorene Acker states: Mabel M. Snowden Grants and convey to Johnie Lorene Acker an .... “undivided one-fifth (1/5th) interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas.” (CR 111-114; App. 8) (emphasis added) The 1965 Mineral Deed, unlike the Hausser deed, specifically referenced a prior deed for a description of the mineral interest being conveyed. Hence, the prior deed must be referred to in order to ascertain the intent of the parties as to the interest being conveyed. See Harris v. Windsor, 156 Tex. 324, 325-327, 294 S.W.2d 798, 799-800 (Tex.1956). In Harris, the issue was whether the “reservations” contained in the prior deed were carried forward. The granting clause of the deed stated: 'And being the same land described in Warranty deed from the The Federal Land Bank of Houston to W. C. Windsor, recorded in Vol. X-2, Page 119, Deed Records of Marion County, Texas, reference to which is made for all purposes.' Id. The Texas Supreme Court in Harris relied on the “made for all purposes” to incorporate the reservations from the prior conveyance in 24 following language: It is obvious that the reference in the Federal Land Bank deed to the Liverman-Tems deed, 'for all legal purposes,' was not for the purpose of description, but for the purpose of disclosing that the deed was subject to all restrictions and reservations in that deed. As before stated, that deed reserved one-half in the minerals to Liverman. Id. at 156 Tex. at 327, 294 S.W.2d at 800. In the appeal at bar, the reference “made for all purposes” is unnecessary because the reference in the Snowden deed to the prior deed was specific to “the mineral interest hereby conveyed.” In other words, the reference to the prior deed was for the specific purpose of describing the interest being conveyed. Reliance by the Johnie Acker Heirs on the decision in Myrad Properties, Inc. and the subsequent additions to the Texas Property Code, Section 5.030 which made the case “dead letter law,” is also inapposite as the Mabel Snowden Heirs are not contending that the Correction Warranty Deed adds an additional mineral interest, but to the contrary, that the Correction Warranty Deed merely restated the prior grant in terms of a royalty interest rather than a mineral interest with reservations. Myrad Properties, Inc. v. La Salle Bank Nat. Ass’n, 300 S.W.3d 746, 749-750 (Tex.2009). (CR 604-607; App. 20) In this regard, the Correction Warranty Deed speaks for itself on the intent and purpose of the correction: 25 “This Deed is made in place of and as a Deed of Correction of [the 1965 Mineral Deed] wherein by error or mistake, Grantors conveyed to Grantee an undivided 1/5th mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantors should have conveyed an undivided non- participating 1/5th of the whole and entire royalty interest, and this instrument …, in all other respects confirming said former Deed ..... “ (CR 115-120; App. 9) (emphasis added) In fact the 1965 Mineral Deed did state that it conveyed an undivided 1/5th mineral interest in all the oil, gas and other minerals; however, that broad conveyance was qualified by the succeeding language “being all of the interest conveyed by Johnie Loren Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas.” The 1953 Royalty deed likewise references the interest as “being all of the interest conveyed by Mabel M. Snowden to Johnie Lorene Acker …. by Deed dated October 27, 1948 …… “ Hence, in each of the successive conveyances one must refer back to the 1948 Mabel Snowden NPMD to determine exactly what was and what is being conveyed, which unquestionably restricts the conveyance to 1/5 of 1/8th royalty. The Correction Warranty Deed states that “in truth and fact Grantors should have conveyed an undivided nor-participating 1/5th of the whole and entire royalty … confirming in all other respects the former Deed. It is clear that the Correction Warranty Deed merely expresses the 26 conveyance as a non-participating mineral interest (NPMI) rather than a mineral interest which reserves for grantor all other aspects of the mineral estate. (CR 115-120; App. 9) The five essential elements of a severed mineral estate, are (1) the right to develop [the right of ingress and egress]; (2) the right to lease [the executive right]; (3) the right to receive bonus payments; (4) the right to receive delay rentals and (5) the right to receive royalty payments). See Altman v. Blake, 712 S.W.2d 117, 118 (Tex.1986); Julia Authelia Winslow, 781 S.W. 2d at 326. In fact, the interest conveyed remains the same, albeit expressed in different terminology. The contention by the Johnie Acker Heirs is that the Correction Warranty Deed removed the reference to the prior 1965 Mineral Deed. This position is frivolous. Nowhere in the Correction Warranty Deed does it do so. (CR 115-120; App. 9) If that was the intent of the correction, the removal could have been easily included in the Correction Warranty Deed. When the 1965 Mineral Deed and the 1980 Correction Warranty Deed are reconciled, it would read as follows: Mabel M. Snowden ..... do(es) grant, bargain, sell and convey to the said Johnie Lorene Acker, an undivided non-participating one-fifth (1/5th) of the whole and entire royalty interest ....... in and to all of the oil, gas and other minerals described below, being all of the interest conveyed by Johnie Lorene Acker to Mabel M. 27 Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas.” (CR 107-110; App. 7) (CR 115-120; App. 9) (emphasis added) 3. Attorneys Fees - Declaratory Judgment Pursuant to Chapter 37 of the Texas Civil Practice and Remedies Code, the Mabel Snowden Heirs seek a declaratory judgment from this court of appeals that would have the effect of settling the entitlements regarding the suspended royalties and settling future disputes under the documents granting such royalty rights. TEX. CIV. PRAC. & REM. CODE ANN. §37.004 (WEST 2007). Pursuant to Texas Civil Practice and Remedies Code §37.009, the Mabel Snowden Heirs are entitled to costs of court and reasonable and necessary attorney’s fees as set forth and stipulated by the parties in the Final Judgment of the trial court (fees to be awarded to Appellants in the event this court of appeals reverses and renders judgment in favor of the Mabel Snowden Heirs. TEX. CIV. PRAC. & REM. CODE ANN. §37.009 (WEST 2007). (CR 273-276). CONCLUSION AND PRAYER The Mabel Snowden Heirs pray that this honorable court of appeals 28 reverse the trial court’s final judgment and as a result the underlying summary judgment order and grant judgment on appeal for the relief sought by the Mabel Snowden Heirs and any further relief to which they are justly entitled. Respectfully Submitted, THE LAW OFFICE OF GILBERT VARA, JR. & LAW OFFICES OF RICHARD J. KARAM The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Emails: gilbert@varalaw.com, rjkaram@aol.com By: /S/______________________ GILBERT VARA, JR. State Bar No.: 20496250 RICHARD J. KARAM State Bar No.: 11097500 Attorneys for Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden 29 CERTIFICATE OF SERVICE I certify that on December 18, 2015, pursuant to TEX. R. APP. P. 4 (e), 9.5(a), a true copy of Appellants’ Brief was delivered to the following counsel of record by e-service: LAW OFFICE OF WILSON CALHOUN Attn.: Wilson Calhoun 719 S. Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 Telephone: (361) 882-3300 Telecopy: (361) 888-5404 Email: Wilson@wcalhoun.com & LAW OFFICE OF AUDREY MULLERT VICKNAIR Attn.: Audrey Mullert Vicknair 802 N. Carancahua, Suite 1350 Corpus Christi, Texas 78401-0022 Telephone: (361) 888-8413 Telecopy: (361) 887-6207 Email: avicknair@vicknairlaw.com Attorneys for Edwin V. Acker, Jr., et al By: /S/_______________ GILBERT VARA, JR. 30 NO. 04-15-00534-CV _____________________________________________________ IN THE FOURTH COURT OF APPEALS AT SAN ANTONIO _____________________________________________________ PATRICIA JO KARDELL, MARTIN MURPHY SNOWDEN, MICKEY DARRELL SNOWDEN AND MARY DELILLA SNOWDEN, Appellants, v. SWIFT ENERGY OPERATING, LLC, Appellee. _____________________________________________________ APPELLANTS’ APPENDIX _____________________________________________________ LIST OF DOCUMENTS App. 1 Judgment ..................................................................... (CR 654-672) App. 2 Order Granting Acker Motion for Summary Judgment and Denying Snowden Motion for Summary Judgment .. (CR 640-649) App. 3 1948 Murphy Estate Partition Deeds…………………….. (CR 071-088) App. 4 Green Martin, General Warranty Deeds ………………..(CR 089-094) App. 5 1948 Snowden NPMD…………………………………………. (CR 095-100) App. 6 1953 Declaration & Agreement……………………………… (CR 101-106) App. 7 1953 Royalty Deed....................................................... . (CR 107-110) App. 8 1965 Mineral Deed………………………………………………... (CR 111-114) App. 9 1980 Correction Deed…………………………………………... (CR 115-120) App. 10 Swift Energy Lease………………………………………………. .(CR 121-159) 31 App. 11 Division Orders…………………………………………………… (CR 160-246) App. 12 Julia Authelia Winslow v. Edwin V. Acker……………..(CR 247-252) App. 13 Cause No. 1013-C, Julia Winslow, et al. v. Edwin V. Acker………………….(CR 253-272) App. 14 Motion for Summary Judgment – filed by Mabel Snowden Heirs……………………………….(CR 056-276) App. 15 Response to Snowden Motion for Summary Judgment – filed by Johnie Acker Heirs……………… ....................... (CR 365-446) App. 16 Motion for Summary Judgment – filed by Johnie Acker Heirs…………………………………. ..(CR 277-331) App. 17 Response to Snowden and Acker Motions for Summary Judgment – filed by Swift Energy…………………………………………… . (CR 447-593) App. 18 Response to Acker Motion for Summary Judgment – filed by Mabel Snowden Heirs……………………………….(CR 594-599) App. 19 Corrected Response to Snowden and Acker Motions for Summary Judgment – filed by Swift Energy…………………………………………… (CR 600-603) App. 20 Supplemental Briefing – filed by Johnie Acker Heirs………………………………….. (CR 604-607) App. 21 Response to Acker Supplemental Briefing – filed by Mabel Snowden Heirs……………………………… (CR 608-612) App. 22 Letter Ruling Granting Acker Defendants’ Motion for Summary Judgment ............................................................................. (CR 613) 32 CAUSE NO. 12-06-001222-CVL SWIFT ENERGY OPERATING, LLC IN TH E D IS TR IC T C OU RT v s . PATRICIA JO KARDELL, MARTIN MURPHY SNOWDEN, MICKEY DARRELL SNOWDEN, MARY DELILLA SNOWDEN, EDWIN V. ACKER, JR., STEPHEN ADOLPH ACKER, ELAINE ACKER GEORGE, LOLA MAE AKERS, PAMELA BOSS, DEAN EDWARD BURKETT, DEEANN 218th JUDICIAL DISTRICT BURKETT WILSON, CARON Fii-C-D rC^. MARIE CORUM, BRIAN HUNTER, JENNY MAY WOODALL LAWRENCE, MALYDALYN JONES MITCHELL. BONNIE LEE SKIDMORE, LOURENE YVONNE WOODALL VANCE, SHARON L. WILLIAMS, DANIEL 7?;>f\RGARlTA A. cl WILSON, FRANCIS MADISON LA w U v t . fl , .t/.nC3 WOODALL, JOHNNY LEE WOODALL, DY DifPUTY SHELLA ACKER REINKE, AND EDWIN SCOTT ACKER LA SALLE COUNTY, TEXAS INALIUDGMENT On this day came on to be considered the parties' motion for entry of final judgment in this matter. This Court finds it has jurisdiction over the subject matter and the parties to this proceeding. Swift Energy Operating, LLC, P!aintiff-in-Interpleader (hereafter "Swift"), brought this interpleader action against Defendants, Patricia jo Kardell, Martin Murphy Snowden, Mickey Darreli Snowden, Mary Delilla Snowden, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Lola Mae Akers, Pamela Boss, Dean Edward Burkett, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunter, Jenny May Woodall Lawrence, Malydalyn Jones 1 VOL. 1^6 1 PAGE ' 1 0 0 Mitchell, Bonnie Lee Skicimore, Lourene Yvonne Woodall Vance, Sharon L. Williams, Daniel Wilson, Francis Madison Woodall, Johnny Lee Woodall, Sheila Acker Reinke, and Edwin Scott Acker, being potential rival claimants to seven and one half percent (7.5%) of the oil and gas royalties arising from that certain Oil and Gas Lease dated December 1, 2009, from Martin Murphy Snowden ec ai as Lessor, to Swift ("disputed royalties"), as evidenced by Memorandum of Oil & Gas Lease recorded in Volume 490, Page 98, of the Official Records of La Salle County, Texas. Covering the Subject Property as defined below (the "Swift Lease"). Defendants, Edwin V, Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scott Acker (collectively "Acker Defendants"), upon being duly served with citation, filed an Answer and Cross-Claim against all other Defendants, claiming they are entitled to a royalty under the Swift Lease equal to one-fifth (l/5th) of the one-fourth (l/4th) of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith. Thereafter, the Acker Defendants non-suited their claims as against Defendants, Lola Mae Akers, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Pamela Boss, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunter, Lourene Yvonne Woodall Vance, Sharon L Williams, and Daniel Wilson, Defendants, Martin Murphy Snowden, Mickey Darrell Snowden, Patricia J. Snowden Kardell, and Mary Delila Snowden (collectively "Snowden Defendants"), upon being duly served with citation, filed Answers and Cross-Claims against the Acker Defendants' under 2 VOL. 10 fm 101 the Uniform Declaratory Judgments Act, Chapter 37, Civil Practice and Remedies Code to determine the respective rights of said Defendants to the disputed royalties. The Snowden Defendants also filed a Counterclaim against Swift for breach of contract for suspending and constructively tendering into the registry of the court five percent (5%] out of the seven and one-half percent [7.5%) disputed royalties, asserting that only two and one-half percent (2.5%) of said royalties were actually in dispute. Defendants, jenny May Woodall Lawrence, Malydaln )ones Mitchell, Sharon L. Williams, Lola Mae Akers, Caron Marie Corum, Brian James Hunter, and Pamela Boss, acting pro se, filed Answers disavowing any interest in the disputed royalties and requesting a release and discharge from the interpleader. Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, although each having been duly served with citation and a copy of Plaintiffs Original Petition in Interpleader did not appear and answer. The citations were served according to the law and returned to the clerk where they have remained on file for the time required by law. On June 25, 2013, the court heard oral arguments on the following competing motions: [a] the motion for summary judgment of Defendants, Edwin V. Acker, jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker [Reinke] Bonner, and Edwin Scott Acker and (b) the motion for summary judgment of Defendants Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden. 3 656 . VOL. 1 0 1 PADt102 On April 3, 2014, this court granted the motion for partial summary judgment of the Acker Defendants and denied the motion for partial summary judgment of the Snowden Defendants against Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke] Bonner, and Edwin Scott Acker. The partial summary judgement did not dispose of competing claims for attorney's fees under the Uniform Declaratory judgment Act, Chapter 37, Civil Practice and Remedies Code (the "Code"), or resolve other claims and causes of action, including the Interpleader action of Swift and the claims of the Snowden Defendants against the Interpleader. The said remaining claims are hereafter disposed of herein. Therefore, this final judgment disposes of all claims and causes of action in this matter. The Court hereby renders this final judgment as follows: IT IS THEREFORE, ORDEDED. ADJUDGED AND DECREED that Defendants, Jenny May Woodall Lawrence, Malydaln Jones Mitchell, Sharon L. Williams, Lola Mae Akers, Caron Marie Corum, Brian james Hunter, and Pamela Boss, having filed Answers disavowing any interest in the disputed royalties and requesting a release and discharge from the interpleader are hereby divested of any and all interest in the disputed royalties and are hereby released and discharged from this Interpleader action. IT IS FURTHER, ORDERED, ADJUDGED AND DECREED that Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, having admitted the material allegations asserted herein by failing to answer and/or to otherwise dispute the allegations concerning the ownership of the disputed royalties made the 4 VOL 1#1PAGE lOf: subject of this suit, and having wholly made default as to asserting any rival claims to the said disputed royalty in this interpleader action, default judgments are hereby GRANTED to Swift against Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, and that said Defendants are hereby divested of any rights and claims to the disputed royalty interest and interpled funds and are further divested of and denied any right to contest the interpleader action brought by Swift. IT IS FURTHER, ORDERED, ADJUDGED AND DECREED that a take nothing judgment is hereby entered on the Snowden Defendants counterclaims against Swift; that the interpleader action was properly brought and Swift is hereby discharged in full from this interpleader action; and Swift is awarded TWO THOUSAND FIVE HUNDERD DOLLARS [$2,500.00) in attorney fees from the Acker Defendants, to be paid jointly and severally by and amongst them. IT IS HEREBY DECLARED that the five percent (5%) royalty derived out of the seven and one-half percent (7,5%) disputed royalty was and is the property of the Snowden Defendants and that the heirs, successors and assigns of Edna Mae Jones and Julia Authelia Winslow are not entitled to any portion thereof, having rights, respectively, to only l/5th of l/8th (or 12.5%) of the royalties derived from the Subject Property as hereinafter more fully described, that is, 1/5'^ of 1/8^^ non-participating royalty interest to the Edna Mae jones Heirs, successors and assigns, and 1/5^^ of 1/8^^ non-participating royalty interest to the Julia Authelia Winslow Heirs, successors and assigns, each such interest derived by through and under the Non-Participating Mineral Deed dated October 5 VOL. 1 (U PAGE ■ • 1 i) 4 27, 1948 and filed of record in Book K-4, Page 311 of the Deed Records of LaSalle County, Te x a s . IT IS FURTHER ORDERED, ADJUDGED AND DECREED, that the said five percent (5%) royalty derived out of the seven and one-half percent (7.5%) disputed royalty has heretofore been paid to the Snowden Defendants by Swift and the court hereby confirms the payments of all such royalties paid to date by Swift; and releases Swift from any liability relating to said payments. The Snowden Defendants shall be entitled to any future five percent (5%) royalty payments derived out of the said seven and one-half percent (7.5%) disputed royalty from the Subject Property. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the motion for summary judgment of Defendants, Edwin V. Acker, jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker is hereby GRANTED as hereinafter described and restated. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is rendered under Chapter 37 of the Code, that pursuant to the Correction Warranty Deed from Mabel Snowden and her husband joe Snowden to johnie Lorene Acker, dated June 24, 1980, and recorded at Volume 225, Page 248 of the Deed Records of La Salle County, Texas on July 8, 1980, a copy of which is attached to this judgment as Exhibit A, the heirs, successors, and assigns of johnie Lorene Acker own an undivided non- participating one-fifth of the whole and entire royalty interest in and to all of the oil, gas, and other minerals in the following property: FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas known as 6 VOL. 1 41 PAGE 1 0 T) Sur. 137 patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue Land Scrip No. 244, Pat. No. 240, Vol. No. 35; SECOND TRACT: 640 acres of land, more or less, in La Salle County, Texas, known as Sur. No. 143, patented to I. W. Bean, assee. of ]. H. Gibson by virtue of Scrip. No. 401, Pat. NO. 423, Vol.30; THIRD TRACT: 638.5 acres of land in La Salle County, Texas, and being all of Sur. 147, Cert. 68, patented to E. Ridgeway, assee. of). V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 638.5 acres; FOURTH TRACT: 193.1 acres out of Ori. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No, 344, described by metes and bounds as follows: BEGINNING at the SW corner of Sec. No. 147, J. V. Massey and the N. W. Corner of Sec. No. 148, A. Salinas for the N. W. corner of this Sur;; THENCE E. with Sec. line 1921 vrs. to a stk. at the intersection with the E. line of E. W. Alderman subdivision for the N. E. cor. of this Survey; THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur.; THENCE W. with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W, line of said Sec. No. 148, for the S. W. cor. of this sur.; THENCE N. with said line 567,4 vrs. to the place of beginning; FIFTH TRACT: 640 acres of land in La Salle and Dimmit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School 7 VOL If i PAGE lUo File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52; The above-described five tracts of land contain 2,751.6 acres, more or less, are the same lands conveyed by Green Martin, et ux. to Mrs, Mabel M. Snowden by deed dated September 28, 1945, recorded in Vol. D-4, Pages 53- 55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of Dimmit County, Texas, to which Deed and records reference is here made for a full and complete description of said land. These five tracts of land are herein referred to as "the Subject Property." IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendanls, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke] Bonner, and Edwin Scott Acker, and their heirs, successors, and assigns are entitled to a royalty under the Swift Lease equal to one-fifth (l/5th) of the one-fourth (l/4th} of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith and that therefore the Acker Defendants shall be entitled to two and one-half percent (2.5%] royalty payments derived out of the said seven and one-half percent (7.5%) disputed royalty from the Subject Property in addition to the two and one-half percent (2.5%) undisputed royalty payments they have been receiving from Swift for a total five percent (5.0%) royalty payment under the Swift Lease. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all future royalty payments under the Swift Lease that become owing after the date of this judgment to which the Acker Defendants are entitled under the foregoing provisions of this judgment, shall be hereafter paid directly to the Acker Defendants, one-half (1/2) to Edwin V. Acker, 8 VOL. 1 (U PAGE i 0 7 Jr., one-fourth (1/4) to Stephen Adolph Acker, and one-fourth (1/4) to Elaine Acker George, after this judgment becomes final. However, if a timely appeal is filed and this judgment is superseded pursuant to the Texas Rules of Appellate Procedure, then the said two and one- half percent (2.5%) disputed future royalty shall be paid by Swift into the registry of this court. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, and Elaine Acker George, are entitled to the funds that have been constructively interpled into the registry of the court and held in suspense by 3 77 Swift, which as of the date of judgment is the sum of $ ^ ^ 7 The Interpled ^ Funds shall be paid by Swift as follows: (i) one-half (1/2) to Edwin V. Acker, Jr., one-fourth (1/4) to Stephen Adolph Acker, and one-fourth (1/4) to Elaine Acker George if this judgment is not superseded on appeal in which case the payment shall be made within sixty days of the date of this judgment, or (ii) into the registry of the court if an appeal is filed and this judgment is superseded pursuant to the Texas Rules of Appellate Procedure and the Texas Civil Practice and Remedies Code, in which case the payment shall be made within sixty days of the date this judgment is superseded. Upon Swift's payment of the Interpled Funds as so ordered in this paragraph. Swift is fully and Fmally discharged as to all such payments. IT IS FURTHER ORDERED, AD)UDGED AND DECREED that the motion for summary judgment of Defendants, Patricia jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden is hereby, in all things DENIED as it applies to 9 VOL. 1 lial PAGE 1 0 8 Defendants Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that judgment is rendered that the Acker Defendants recover from the Snowden Defendants, trial court attorney's fees in the amount of $15,000.00 under Section 37.009 of the Code. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that in the event of an appeal of the judgment in favor of the Acker Defendants against the Snowden Defendants under Chapter 37 of the Code, judgment is rendered that the Acker Defendants recover from the Snowden Defendants, [i) attorney's fees for representation through appeal to the court of appeals in the sum of $15,000.00, pi} an additional sum of $5,000.00 for representation at the petition for review stage in the Supreme Court of Texas, if any, (iii) an additional $10,000.00 for representation at the merits briefing stage in the Supreme Court of Texas, if any, and (iv) an additional $5,000.00 for representation through oral argument and completion of proceedings in the Supreme Court of Texas, if any. Post-judgment interest will accrue at the rate of 5% on all of these sums in accordance with the Texas Finance Code and legal authority. Each award of appellate attorney's fees, and the interest thereon, is conditioned on the Acker Defendants prevailing in the last such appeal taken. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that if (and only if) the judgment in favor of the Acker Defendants against the Snowden Defendants is reversed by an appellate court and judgment is rendered by the appellate court in favor of the Snowden Defendants on their Motion for Summary judgment against the Acker Defendants under Chapter 37 of the Code, then the Snowden Defendants shall recover from the Acker 10 VOL eel OIPAGEOIUI) Defendants, (i) trial attorney's fees in the amount of $15,000 under Section 37.009 of the Code, (ii) attorney's fees for representation through appeal to the court of appeals in the sum of $15,000.00, if any, (iii) an additional sum of $5,000.00 for representation at the petition for review stage in the Supreme Court of Texas, if any, (iv) an additional $10,000.00 for representation at the merits briefing stage in the Supreme Court of Texas, if any, and (v) an additional $5,000.00 for representation through oral argument and completion of proceedings in the Supreme Court of Texas, if any. Each award of attorney's fees, and the interest thereon, is conditioned on the Snowden Defendants prevailing in the last such appeal taken. Post-judgment interest will accrue on any such attorney's fees awarded at the rate of 5%, beginning on the date the appellate court judgment reversing and rendering in favor of the Snowden Defendants becomes effective in accordance with the Texas Finance Code and legal authority. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims between the Acker Defendants and the Snowden Defendants not otherwise disposed of herein are DENIED. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims of Defendants against Swift not otherwise disposed of herein are DENIED and upon Swift's payment of the Interpled Funds as hereinbefore Ordered, Swift is fully and finally discharged and this Interpleader action is DISMISSED. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims of Swift against the Defendants not otherwise disposed of herein are DENIED. 11 vol. 1 H PAGE 1 i (J IT IS FURTHER ORDERED, ADJUDGED AND DECREED that court costs shall be paid by the party incurring same. This Judgment is final, disposes of all claims and all parties and is appealable. The Court further awards Swift and the Acker Defendants any and all writs necessary to enforce this judgment. SIGNED this ^ day of ,2015. ^tJDGE PRESIDING APPROVED AS TO FORM; LAW OFFICE OF WILSON CALHOUN 719 S. Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 (361) 882-3300; [361] 888-5404 fax Wilson Calhoun State Bar No. 03645500 Attorney for Edwin V. Acker, Jr., et al. LAW OFFICE OF RICHARD J. KARAM The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229 (210) 614-6400; (210) 614-6401 fax l^hard J. Karam S t a t e B a r N o . 11 0 9 7 5 0 0 Attorney for Patricia jo Kardell, et al. 12 VOL LAW OFFICE OF FREDERICK R. ZLOTUCHA 222 Main Plaza East San Antonio, Texas 78205 (210) 2^-9877; (210) 227-8316 fax Frederick R. Zlot^ State Bar No. 2228^J5t)0 Attorney for Swift Energy Operating, LLC 13 VOL, 1 0 1 PAGE 1 R 666 JENNY MAY WOODALL LAWRENCE P r o S e D fi f e n d a n t m Signatun; MALYDALN JONES MITCHELL ProSeDdfendant ygc4j PA M E L A B O S S Pro Se Dfifendant (Address) Signature SHARON L WILLIAMS Pro Se Defendant [Address] Signature 14 VOL fOlPAGE til JENNY MAY WOODALL LAWRENCE Pro Se Defendant [Address) Signaturi! MALYDALM JONES MITCHELL Pro Se D<;fendant (Address) Stgnatun; PA M E L A B O S S Pro Se Dcfendan i-r-Ft :^aDUL (Address) Signature; SHARON L. WILLIAMS Pro Se Defendant (Address) Sfgnacurc 14 VOL. 401PAGE"H4 Rprrn'prt Fa* Jul ?0 ?015 15:57 07/20/2015 16:49 6172940295 FEDEX OFFICE HULEN PA G E 02/02 IBNNY HAY WOODALL UWRKNCB Pro Se Dt.'fendant (Address) .Sigrtatun* MAIYDAIN rONES MITCHBLL Tro Se Defendant (Addreis) Signstun: PA M E L A B O S S Pro Sc Drrendant (Address) Slgnacurt; SH^ONUWlLUaiMS (gfWsSgt^n:iK,.> (Addresf) lO s < 010 J Si^aturc M VOL. 1^0 1 PAGE J i f) BRIAN JAMES HUNTER Pro Se D VOL 9 llfAGE 121 Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scoti Acker, and their heirs, successors, and assigns are entitled to a royalty under the Swift i^ase described below equal to one-fifth (I/Sth) of the one-fourth (l/4th) of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith; IT IS FURTHER ORDERED AND DECLARED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker are entitled, out of the funds that have been constructively interplead into the registry of the court, and/or held in suspense by Plaintiff-In-Interpleader Swift Energy Operating, LLC, to that portion of said funds calculated so that they will have received under the Swift Lease, when taken together with otlier disbursements of royalty under the Swift Lease, a total royalty calculated as one-fifth (1/5'^) of the one-fourth (1/4**^) royalty owed thereunder by Swift Energy Operating, LLC. IT IS FURTHER ORDERED that the motion for summary judgment of Defendants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrcll Snowdcn, and Mary Delilla Snowden is hereby, in all things, DENIED as it applies to Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheiia Acker (Reinke) Bormer, and Edwin Scott A c k e r. The "Swift Lease" referenced above is that certain Oil and Gas Lease, dated December 1, 2009, from Martin Murphy Snowden et al, as Lessor, to Swift Energy Operating, LLC, as evidenced by Memorandum of Oil 8l Gas Lease recorded in Volume 490, Page 98 of the Official Records of La Salle County, Texas, covering the Subject Property. VOL, 101 PAGE ;{;H) Page 4 of 6 VOL. 94 p/iGE 1 2 ^ This is a partial summary judgment and disposes of no ciaims not specifically referred to herein. SIGNED this3 day of ' ,2014. (^UDGE^RESIDING TOR RtCORD 'f^t3ARITA A. FSOL// /^UNTY LAi>AaE&COUNTY DlST'* CT , TtCi/zptf iXA^ DnpitJy VOL 101 PAGE :{y7 Page 5 of 6 VOL. [Ul PAfiE t 2 n U ( / U J. X APPROVED; LAW OFFICE OF WILSON CALHOUN 7!9 S. Shorcimc Blvd., Suiic 404 Corpus Otrisii. Texas 78401 (36! »iW2-33tX); ^:t61)R8g-5404 fux Kmail: Wils(in(6^vvt:alhoun.a»m WUsoo Calhoun ^ Siiiio Rar No, Aluvncy for Kdwin V. Ackcr. Jr.. Hi Al A P P R O V E D A S T O F O R M O N LY: LAW OFFICE OF RICHARD J, KARAM The Ariel Knuse 81(8 Datapoinl Drive San Anionic, Texas 78229 2 1 0 / 6 1 4 - 6 4 0 0 : 2 1 0 / 6 1 4 - 6 4 0 1 Ta x Richard J. Kuntm S l a t e B a r N o . 11 0 9 7 5 0 0 Attorney for Patricia Jo KardcIL E( Al LAW OFFICE OF FREDERICK R. ZLOTUCHA 111 Main Plazii F-tsi San Anionio. Tcxsls 78205 aiO)227-9K77; (2tn)227-ft3!6 lav Aliomc) for Swift Energy Operating. LLC Pa^c 6 of 6 ^0!" 1 0 ] PACE li b 8 645 * Exhibit A To Order Regarding Motions for Summary Judgment VOL lOjpAGE 646 0 3/2 ? /'.^ O.i 4 XHU r MA JOJ. ovv 3 n : v 7 CORRECTION WARRANTY DEED THE S TAT E OP TEXAS KNOW ALL MEN BY THESE PRESEOTS: COUNTIES OF LA SALLE AND DIMMIT That we, MABEL M, SNOWDEN, joined pro forma by har husband, J O E G , S N O W D E N , o f L a S a l l e C o u n t y , Te x a s ^ i n c o n c i d e r a t i o n o f t h e s u m of TEN DOLLARS ($10.00) and other good and valuable consideration to us in hand paid by JOHNIB LCRENE ACKER, of McMullen County, Texas, the receipt .of which is hereby acknowledged, have GRANTED, BARGAINED, SOLD AND CONVEYED, and by these presents do GRANT, BARGAIN, SELL AND CONVEY to the saj ) H N I B L O F fi N E A C K E R , a n u n d i v i d e d n o fl - p a r t i c i p a t j p q o n e - fifth /U of entire r9valtv interest aa her separatee sole and individual property in and to all of the oil, gas and other m i n e r a l s d e s c r i b e d b e l o w, s u b j e c t t o t h e r e s e r v a t i o n h e r e i n a f t e r m a d e . S a i d l a n d i s s i t u a t e d i n L a S a l i c a n d D i i a m i t C o u n t i e s , Te x a s a n d described as follows: FIRST TRACTI 640 acres of land, more or less, in La Balle Cotinty, Texas known as Sur, 137 patented to Einanuel Ridgeway, assignee of the T, T. R y, C o . , b y v i r t u e L a n d S c r i p N o . 2 4 4 , Pat. No. 240, Vol. No, 35^ S E C O N D T R A C T; 5 4 0 a c r e s o f l a n d , m o r e o r l e s s , known as Sur. No. 143, Patented to I. W. Bean, assee. of J. H. Gibson by virtue of Scrip. No. 4 0 1 , P a t . N o . 4 2 3 , Vo l . 3 0 j THIRD TRACT? 638.5 acres of land in La Salle C o u n t y , Te x a s , a n d b e i n g a l l o f S u r . 1 4 7 , C e r t . S B , p a t e n t e d t o E . R i d g e w a y, a s s e e . o f J . V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 636.5 acres; roURTH TR^Ti 193.1 acres out of Ori. Sur. No. 14 6, in tlie name of A, Salinas, situated in La Salle C o u n t y, Te x a s , Cert. No. 68, Pat. No. 1 3 1 , Vo l . M o . 4 , A b s t , N o , 3 4 4 , d e s c r i b e d b y metes and bounds as follows: BEGINNING at the SW corner of Sec. No. 147, J . V. M a s s e y a n d t h e N . W . c o r n e r o f S e c . H o . 146, A. Salinas for the N. W. corner of this ' sur.; THENCE E. with Sec. line 19 21 vrs. to a stk. at the intersection with the E. line of E. w. Alderman subdivision for the N. E. cor. of this Survey; VOL ZZ5 mZAG VOL 1 01 PAGE''"'400 6 4 7 03/27/2Q14 THU /55J tf AJL 301 ooo ■ i THgNCE S, with said subdivision line 657.4 vrs, to a stk- set in fence line for the 5. E. corner of this Sur,? THENCE W, with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs, to a stk. i n W, l i n e o f s a i d S e c , N o . 1 4 8 , f o r t h e S . W. cor. of this Gur.; THBNCE N. with said line 567.4 vr&. to the place of beginning; FIfTB TRACT> 640 acres of land in La Salle and D i m m i t C o u n t i e s , Te x a s , b e i n g a l l o f S c h o o l S e c t i o n N o . 1 3 8 , i s s u e d t o t h e T. T. R . R . C o , , b y v i r t u e of Cert. No. 244, School File No. 40246, being Abst. No. 1468, Pat. Mo, 1S4, Vol. No. 52; together with the rights of ingress and egress at all tines for the purpose of taking said minerals; the said fi v e tracts of land above des cribed containing 2,750 acres, more or less, and being the same land conveyed by Green Martin, et ux, to Mrs. Mabel H. Snowden by deed dated September 28, 1 9 4 5 , r e c o r d e d i n Vo l . D - 4 , P a g e s 5 3 - 5 5 , D e e d R e c o r d s o f L a S a l l e C o u n t y , Te x a s , a n d a l s o r e c o r d e d i n V o l . 68, Pages 86-88, Deed Records of Dinmit County, Texas, to which Deed and records reference is here made for a full and complete description of said land. TO H AV E AND TO HOI*»'* ni.^9u> 03/27/2014 THU 7:bi rAX c o n fi r m i n g s a i d f o r m e r D e e d , a n d i t s h a l l b e e f f e c t i v e a s o f a n d r retroactive to March 25, 196S. WITNESS our hands this the day of , 1980. roe C. Showden ACCEPTEDh tsi ^*^ayof 19B0. Edwxn V&ieni'ine Acker THE S TAT E OF TEXAS COUNTY OP LA SAU^E BEFORE HE, the undereigned authority/ on this day personally appeared JOE G. SHOWDEN and tlABEL M. SNOWOBN, known to me to be the persona vhoae names are subacribed to the foregoing instrument, and ae}cnowiedged to me that they executed the sane for the piirposes and consideration therein expressed* ; * G X V E N U N D E R m y h a n d a n d s e a l o f o f fi c e o n t h i s t h e day of 1 9 8 0 . Notarjj^^ublic, State of x a s THE S TAT E OF TEXAS COUNTY OP MCMULLEN B E F O R E M B , t h e u n d e r s i g n e d a u t h o r i t y, o n t h i s d a y p e r s o n a l l y a p p e a r e d J O H M I S L O R E N E A C K E R a n d h u s b a n d , E D W I N VA L E N T I N E A C K E R , k n o w n to me to be the persons whose names are subscribed to the foregoing instruiaent, and acknowledged to me that they executed the s£une for the purpOHes and consideration therein expressed. ^ GIVEN UNDER my hand and seal of office an this the f^^-day of 1 9 8 0 . Notary'Public, State of Texas I : V O L . 1 0 1 PA G E . . 4 U 2 My Comn^fclen VOL 2^5 HSL248 PILED r gu JL^ i L ^ :^Yi /9SO RECORD E E DD : /9J1> M. LA SALLE C O U N T Y. T T Ya o i-TVi: \i \ 497C T £ 3 T. . T E Of '' /if.l. *1. ^.2 P:« : •••I- Ihat we, I'jrVui .'.ue Joti<3S, jnl.-jed f^ro foi'mu b.,. i-jv uiob .Aubal .uullen Snowdon, joined pre formb b; cor nuabt^nd, J, G. onowrlaiij .'ullfa rtutrmllu tikara, Julnod ::,ro forniti by .lor husband, '.V. i', «k©r3, iifid limmstt Orunvel ..lurphy, four of t ie p.r»lldren of J. i^urpi y, deooaaad, for and In ?.ons Idort t Ion nX' t.)ir ;aont;j do "tuu. a!;'^ u n t o J o h r i l a f j o f o n o t . e c s i l ; , j t . i u r c . . l . T. d o f J , i , , D e r i o a n o d , o f V i i i i r t o n ^ ^ u n t y, I Va j : as iior aocarbta lndlvld«jij?. property, l .y roll-iwin^ deci;rlbod leal jsluLe, tojet'iev wita ull im-j provemotita taaroon, aituuted In i»;c..!uVan "bounty, 'Pa"'>»3, subjonfc t"5 t 'a«i i?iinert>l I'astirviit Ion und .vot9r reserv;.t Ion herolnafter ment l-^aod^ ry 20, 1909, und TLlod for re :ord on f*obrukiry ly, iUGQ, and r e c o r d e d I n Vr ^ l u m e I C * p b j o 1 7 i * o f t l O D a a d l v o c o i \ i 3 . - i f v o a o t : ' , I ' o y h s , t o w U c h d e 3 d i i n d racord roforoncQ is nere mbdo for u ^'ull tsDtnplol.^i daacriptIon of s.'»tno« S^:^'iljT) Two iimdred i-orty (<^4C) uciros of Ian-', tua sumo l-oinj twO Sout'.iwfiisl. 1/4 j^nd tiiQ !'Vast l/ir of t-.d ;;ort.iv/93t 1/4 nt 'i-^rjool oQ tlnn ::n. Ico, made b" virtue of "ortlflcate ^o» 9l6, I to Kdnms, {-ot»ty, M^ulton for u4D b'lrad and btjin^ t.jo n ..rj9 240 a^roy out oX 3k< id Sectio I Do. Xf5b descrlbad In too deed I'Dom J, o. xurp'iy und wife, ;.:u;. ..iurorr, to Jo;in 'V. .'.omucl:, ^ated J a n i ; i < r y £ 0 , U K G , f i l e d f - ^ r r a c o r d o n [ o b r u t r ^ . 1 9 , I T- . 9 , > i r. d r o - . o r d o d I n V ) l u m a P. ' i . c 1 7 l o f tio Ddod i'ecorda of ;.:c..iu''1 on •.^)unty, To>:.«o, to v/ , ca do )d {iiid i-nssr' rofjronno is iotq fniido; wn' It la ulao t^ie st>we 840 f crea out. oi' ocl.o >3 Ion i«o. 1-i: do • Tlbod In u purtltli^n de-)d bot- w a e n J , M u r i t t y a n d 7 ^ . 3 , : l u c k d a t o d O c t o b e r 2 c , I ' J O T, ' l i e d f o r r ^ j c o r v l J a n u a r y 1 5 , 1 3 L 6 , . ' j n t r e c o r d e d L n ^ / o l u n j o P a j e 5 0 4 o r t . i o D o j d K e c o r d s o f . M r J u l l o n c o u n t y, To x a a , t o - v i i c h d t j i d a n d rooorl roferdnce la riaro mado for >1 lull arid inniplata doa ;*ir.tiou of r,aj;ia« i T;19 two above described tru' t.a of land are alao dyy^ribed Ln a a.fbrlff'a do-jd from V, T. .tollani to .T, tL, ixurr ly, -iau-jd rXune 2, 1914, fll«3d Juno .'if-, 1014, an^^ ro'joi'dod in V liutift R m ^ea 553' 15r:i4 of too Deod fvojords --f ;.;c..;iil Ion ;ounty, To.\i n, ond reforenco is lor-a ^.lao made t:» tnis dead for '» d-.ino''l[ t Jnn ol' tnla iLnd, T'^ •u'i''2 iV..T^ ?/ ' '"',0 l,.ig .lurfuco oat.'.t'.G 01 l ie nbove do.'v;rlbed nroml.sna, tJr;otfi'.)r •.vit.'i all (ini ainrjular t 10 ri^hta, iiQiodltarnunts, and uji; urtorianiius t-.er'iU'-.to in any wlao 'yj 1 on,;jin;^, unto ti^.o saM Jonnia L.^reno ^iksr, ua i-ar aorar^te Individual prop^i't./, nor lol-a and nasljns forovoj jund vna do loroby bind ourselves, our nolra, e/.d^utora, adaiLnlatrators, aucoeasora# and assigns, to warrant und forovar do^'ond ftl] and 3ln;.;ulur I, m 3urfi>c,e oatuto of t ie aald pronlaoa unto t'no fiald Jo'inio Lorene /v^ker, -irtv lolrn, and suocea.^t'ira, against cjver,, roi*S(ui .viomsoover lawfully claltnlnjj or to claim t »o samo or any nart t'leroof, b;,, t'lrou^^n, or under ua but not j.'>t>ierwl3e« Provided, however. It I9 exii-esijly understood arui u^roed by oacn and all :-,i Ino fiartles a y i ' - c ' t o t t ; u t n o p a r t o f t n c o i l , ^ a a , o r o t r. o r j i . l i i a r b l a i n , o n , o r u n d e r t n e a b o v e d o n i r l b a d l a n r Lira hereby convayod ;r are int^andod or af t'o.itrir'' by tils instrument ..ss and •i^voQs at ^11. titnaa for t la purposes of inlnLn^;, jdrlllln^, and exploring said lando f<')r oil, r,as, Lind otner minora la, an'* T",imovin2 toe s...mo tnere 'froni, »ind none ol t;ie ro.altJes, rovars i">nary i at ii'-.n 13, or "t jer rlj.it3 of aaid fai'ties under oxlflttn;; nil, ji'S, and ni"ej'nlnai'al leases Ktimrrtoni^a or the ^^rillar of :oz rfammoncis' vol], i'or wuter usad off of :3o:tiori 4l:0 ubova dcia- c r l b e d a h o l l c i i y i b l f ( l / 2 ) t o 3 d n i : » J o n c f l , a s l y r a e p a i ' u t © j ! i o r 0 r t . y, i » : i i i j H O - l a l f ( 1 / c ) to iToimld Loreno Mcker, aa nor soper 1e nrv^porty, un'^ t^lso t-rr. ot ier vv^-iLui' tuut la aol'j off of wells nutnbur ona and numV>er two on a-iHlT ;o \/'L to jidnu i/.be Joii'^a, ua iwr asjjiruto . I !• I p r o p e r t y, a n fi t i i e o t ' , a r 1 / 2 t o J i i n r. i e I - i - ^ r d fi e : n k t i r, b s . l a r o o p o r i i t o p r c fi o r t ^ , a n d t . 1 3 a l u l l | ! c o n t l n u s a n l o n f f Jb n o l l . i o r l i d n u . . l u e J o n a s o r J o ' ^ n l o L o r a n o i \ C k o r l i v a u n l 8 . s < ? t - i o a t . I d J o u n l e I, • Fiorona noker docldea to sell sbid land na miLch suld woila are lo'uatod t»ncl .a»s b t ujor i»nd ana ; has ynterwd Into h (jontrn'^t to 3611 sij;no, In wnlch ovynt t.io a^iid F.dna Kho Jonea ahull appoint | I an upprulser end tlto at^ld .Tohnio T.->rona f,cker s nil liPfoirit on fappnaiaer, and tho two apprhiaei'li} ! aprolntad snail In tarn bproint u tliird hp; r'. l,T l t : : < ^ : ' a f r o r a , t i n d ' . V: i a n i a p i a I d t o tha auld ^dna Maa Jon^a ni-nj sholl *.iuit-?.l.b Im ull ;i!)r r-ljat, tiMo, and Intaroit In Kitid to gij id j wytar rights ^loreln raaarvod to -M^r. . It Is U3re:3d and understood t.i&t on tha danth -f b.ith ,-^dna :,be .Tonas and .lonnli^ Lorene Acker tno watar rl3.'it herain ranervad s'l&ll tormJ.n&ta, t.ut until t.;.o ddbth oi' b:>th of t(iam t:i6 benoflta heraln aet forth shall t"j ^'.Indin, tt;elr ;»olrs, oxocutors, fadmlniatrutors, wnd as- a i^na • It la further undyrat >od and M3raod, bn:,t ilnj, to tho :ontr /r;, nr^trwlthntandlnjj, thwt Johnie Lorano acker is to nuva tcie usu of /^ator out of ga Id vjolla and tho rli^nt to sol] vv.tar crom said wolla, but w "3n .iha so'Ts tno aald ^vutar aae siiall pH_ to Sdna i(5ao Jonea, i.-a nor a e p a r t i t a p r o p a r t y, o n o - o h l f ( 1 / 2 ) o f w. ^ y t a v o r ^ o t a f o r a a m s . E x e c u t e d t n l a t h e < i l a t d a y o f D o t o b o r, i r # 4 o . Tjdna »»tae Jonoa Jlrnirile Jonas Mabal Mullen Snowd^in J« G. Snowdon .Tullii authalla nkers , V. i , .ikara Ztiiina 11 Oriin ve 1 Mur'piij T\-3 STm'I-E 'V' T!vVil3 - J O n . J ' I ' Y O r ^ j h VA L ' ^ o f o i ' t ) t : w, t h e u n d o r a l i j n o d a u t h o r i t y, a N o t a r y P ; ) b l l - i I n t i t i d f o r O u v a l ' . ' o u n t ^ , , ' l a x a a , on thla day peraonal.ly appeared Jim;:.la Jones and iidna ..laa Jnnoa, hlg wife, botn knovm to tne ji to be the paraoris jvnoae namea are auhS'Tlbod to t..o for-y^oin^ in*'tr iniant, 'and aclmo*'lodged to 1 me ti'tut t/iey OiM^n executed t/je s me for t-io pirroaes wnt? ronaiderbtlon t jerjln e'.preased, and | tne at Id Edna IJkq Jonaa, wife of t-to fsald Jln-iiio Jorjo:;, having been j>.i'iulnod by uie privily and | apart from 'nr hua^'ond, and 'lavinfj tho aaino fjlly o^rlninad to rier , 3»io, tne said Kdnt. ^]ijo Jonea, acknowledged surh inotrunont to be her act Hnd riond, and aue declar-ed tnat aliO nad will incrlv 1 Tnort thfl pftnn fnr the r^in'rinflna jjnd onnn 1-Ini**! t ^ nn fmrain h rr»« s s^d. and t.h>it 5l'iA did to me to be ti'.e paraona v^hosa nhtiies nro su acrpjad to tne iorasoln^i Inatrument, and Bcknowleiigad to mo t;i»t t'ioy e:='^h oxtt'Hit.od t la a^ituo fjr t>io purposes oonairJeratlon t,jbreln ©;nowfJon, v/lTa of tnQ suld J» G» Snowden, aLvln:^ booin o^umlned by U10 prlvil And &part fror. lior imabLnd, und hfci .lrij; tuo 3«-.nio I'ully <-1--piu Lnod to hdi'j s.-o, tlie aatd Mabel iJulllj ?^nr>7/den, ii^'.knowlof^;;:9d such Inati'ument to be aor b't ^and dai^d, und aiia doclurad that she bwd will In^l;/ 3l^".Qd tao auffie for lUe purpoaea and 0 nna Idoi-ut ion thoi'ein oxrreaaad, urid triut s-^e did not v/iah to rotT'hct It. Olvon undur my ^btid und seal of oTfica n-ils J.:io 27 dti., of Octol>ar, n. b. 1948. (^>E..r,) [/tra. /\. M, Kriu^^a C o u n t y C l e r k i n u n d I ' o r L u S n l l o " J o u n t y, l e x u a . T K E ^ j T. T ^ , ' h T T: VA 3 "OlMiT ' -'V LmSkLLE Heloi'e mo, t;»o underai-nod £"it.n'^rlty, xfJCjc^lsxBacxSfetbckfcx in und for Lti.'Jalle 'yount^, Texija, on this dby pbraonal^y i^ppoured V. l>\ nkors. und Ju) iu matnol iu ^kora, uis .vlfo, both known to me to be t.ia r^raons v/.:ose ntimes bre au''3;5ribod to t ,e> . oro^oin,^ L:;3trumant, und acknowledged to mo t iDt tne^i euch exacutod tiio 3i.mci for t'.o purposea t,nd eons I'-^or^j tion t iorutn exproaaed, und tne 3ui(i .lullh »-.utli«litt /»kgra, v/lfe -if the suid .V, r, '-iera, iiijvinj^ boon axamined by ma r>rlvLly |{jnd up&rt from nor -luab nd, tnd liuvln^ t-',o a--.7io /'ul'^y axplbinod to wr, shia, tne auld Juliti r.ut'i telia Akara, ecUTiowlodtied such inatrurent to be hor ttct und deyd, and 3\)& d al. of oi-i'Lca t ,1s I dt.y nf j.-lobrtr, 1940. Mrs, ii. 'J, Kntirj^u JC o U n tj 'C l e i * k 5 '" a n d fo r LySo l l a 'l o u n ty, Te . i . T j . o A L L E D a f n r e m a , L n r ^ a r s l - n e d u u t n o r l t y, I n a n d f o r I . i i S > m a : o u n t y, Te x t - a , o n tliia na-. paraofially appaL.rec? Timrftott fjr.nvel knovvn to a,9 to be tiio poraon .v.toae naitie is ai aoribod to t:io forej;-3inj, inatrutnont, and boknnwlad^Qd to tne t .ut n© o'!Oi.t.;#d tne a to for the purpoaes and ^,onsii^ratlon t iaroin e>'pr:iaagd. Given undar my iJ»nd i.nd soul of offi.vy t,,i3 the 27 day of Octobjr, ... D. 1946. Mra, U. Kna^^^a C o U n t y C l e k ' l c - 5 i n a n d I ' n r ' u S H l l e ^ ^ u r i t y, 7 ' e * < Q s , "■• ' T L V D V O F O h ' ) ; "■ r » y r . . 1 . 1 0 4 - b A T 4 " 1 ' J L P. M . / v ^ D D V T. . Y c , ' 5 : n RT ) v o ' T ' . r s 2 ' f o - ' ' ; V, a . D . 1 0 4 b 5 : 3 C P. M . f t : fl ; i 4 ^ _ D ^ P ! I T y . p-i/: 1. VITN:^, JOUinY Scurt. i i J M U I . L I H . I v J U K i , Ti > . o 3 . CERTlFICATt THE STATE OF TEXAS X COUNTY OP McMULLEN X i, Dorairene Garza, COUNTY CLERK IN AND FOR SAID COUNTY AND STATE DO HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE INSTRUMENT^EREWITH SELOUJ AS i^PEARS OF RECORD IN VOL. < •:S . PAGE X ■ PFfeU RECORDS t HO. 49V7 T; : ' i 3 T. - . T 3 O P T l i / . j S 'CJOV „:J, :;.zn 'V Tuiiss ILTr-I'MTV nv wn:.tTTT.r 7N Miiukj m^a ouiiua, uijo uu.tjf uo nji' J.lLHi Ui .,'♦ »i, , lAJ C-J i-»OU, ..t iVUVfai irUUlil..'/, .!Q/.k>3, US her separ-hte in^llviduDl prnporty, t^ie fnl""••>?.• In:;; noscrltod ret.l tojather with i»ll improv m e n ta ther-tion, sltiiutad In MO'wullen '"bounty, Taxua, aubjoct to tho niinorul resai'vat Ir^n •Wi'eLntirt m a ntlon, said property bain^ inore pHrtLculiiPly <^oocribeid 1.3 fol lo.vs, to-v/lt: nbatract Survey T o r t l fi c a t e Patent orljrinal ^ i c r < j 3 ^'0» iJo» lio. tJo. Oruntoe 54 752 295 h 3 M 640 57 123 994 £94 n ,•>. ^4q Polno abxe surveys Wo.121 i.nrl lo. 122 deacribud in & purtinn rle-id bolwa^in J. Murphy t»rid L, C,, "Ibck, dated October, 26, lv)07, filod Jc^nutiry 1306, i.nd r^ciorried in Voluma M, po^e 504 of tho Do-Jd Honorda of McAluilan Jount;,, Tox^a, to wiuch dead jind record rafarenca la Liero mudo for b ful.l and complete daacriptlon of the land nerotn convojcid, TO Jii'/H] i»IiD T;.' .li^'LD trie aurfbce astute ol' t-.-id ab'-vve described praniiaes, togotnor with all and singular too ri^^hta, ner-^ditanients, bnd upr urtonanoes t lar-iunto in uny .visa beloniiiri^, tj unto tho sold ':Sdna Mtio Jones, hs har aonurtita indiviriubl rronerty, 'lor iiaira ond iissl-na foreviis ant? wa do hor^iby bind '^uraelvea, our vjirs, oxooutora, arimltiistr^f^ra, succsssors, find aasl^na, i to warrant and foravar defend all and alnjiiltir the aurfbco aatbta tho Hi^id rromlaea unto tlie|l aald Edna Mcia Jonos, hor Vjoira, assigns, and auccosaors, ti^^ainst avery parson whomaoevor lawful! olaimln^i or to claim the seme or huy part t lara •»f, bv, tarou^h, ?r uirloj ua, out not ot.iorwUa, Provided, lo.vevar, it is expressly undorritood and H-reed by ouch t.nd all of taa parties hereto tliat no part of tho nil, gas, or otiiar niinfer-u 1 a In, on, iir under tne ubove described luncj are noreby conveyed or t;re intonilad '^r af;octad by t-.is instrument cxcopt as heroaftar proviflod and tho parties har-^to, tholr rospoctive halra and U3.'jij,n3, s/iall continue to o^n ond no]d in common ull ol the ^>51, i^aa, and ^ther inlnjriils in, on, and under all ol ti'ta above do«'rlbed lanr in the same undivided nrooirtion V.v^t said purtios no.v ><:\\ and h-ld said oil, ^as, tind other minerals to^ethor vUtli the ri^ht of in^raas and e^reaa ^.t :ill timea for tea purpose of :iii,Uiii^, ^rilling, and expl"rlnj5 said Ibnds for oil, jtia, c^nd otiior minerals, und removing tue aamo there from, and none ?f the rc;-altiea, rovorsloiiary interenta, or otaer rijits of said r^rties under existing oil, c^aa, and mineral leases shall be Affected in any manner by this instrument; It bein,i further provided, however, anythin.t' la the foremlnR to the contrary notwithstanding, that the f^rantee of the surface estate herein, Edna Ma/? Jones, shall have the exdluaive ritrht to execute, without the joinder of any of the grantors herein, any oil, gas, or mlnerol ieo8o that she desires on any such terms an she may desire, and receive, as her separate property, such bonuses, oil payments, and rentals as may be paid under said oil, Ras end mineral leases so executed by her, except that she shall reserve in each oil, Ras and mineral lease so executed by her, a base ono-oit^hth (I/6) royalty Interest for the benefit of herself and tho other four children of J.E. Murphy, deceased, grantors herein. In the same proportion they now o*m same. The rlf^hts end privileges herein granted to the grantee herein shall not only be for her benefit, but ahall be for the benefit of her heirs, executors, administrators, and assigns, and shall be a covenant runnlnr? with the surface of the land above described, EXECUTED this the 21st day of October, 1948, m e n t , a n d a c k n o w l e d g e d t o m e t h a t t h e y e a c h e x e c u t e d t h e 3 B m e To r t h e p u r p o fl e a e n d c o n s i d e r a tion therein expressed, and the said Johnle Lcrene Acker, wife of the said E.V. Acker, having i been examined by me privily and apart from her husband, and having the name fully explained t o h e r, s h e , t h e s a i d J o h n l e L o r e n e A c k e r, a c k n o w i e d f 5 e d s u c h i n s t r u m e n t t o b e h e r a c t a n d d e e d a n d s h e d e c l a r e d t h a t s h e h a d w i l l i n t ^ l y s l fi n e d t h e s a m e f o r t h e p u r p o s e s a n d c o n s i d e r a t i o n therein expressed, and that she did not wi.^h to retract it. GIVEN UNDER MY HAHD AKD SEAL CF OPPICR this the 23rd day of October, A.D. 1948. ( S E A L ) O e o » W. Wa i ^ d , N o t a r y P u b l i c I n a n d f o r D u v a l c o u n t y, Te x a s , T l I K S TAT E 0 ? T E X A S ) C O U N T Y ( h < ' L a S o l l o 0 B E l ' X D R E M E , t h e u n d e r s i g n e d a u t h o r i t y, i n a n d f o r La Sollo County, Texas, on this day personally appeared J,G. Snowden and Mbbel Mullen Snowden his wife, both known to me to be the persons whose naroea are subscribed to the forep^olng in- striiment, and acknowledged to me that they each executed the samo for the purposes and consid- erahlon therein expressed, and the said Mabel Mullen Snowden, wife of the said J.G, Snowden, havtnf^ been examined by me privily and apart from her husband, and having the same fully e x p l a i n e d t o h e r, s h e , t h e s a i d M a b e l M u l l e n S n o w d e n , a c k n o w l e d g e d s u c h i n s t r u m e n t t o h e h e r act and deed, end she declared that she had willingly alined the same for the purposes and consideration therein expressed, and that she did not wish to retract it. GIVra imOKH MY HAND AND SEC OF Op;-1CE this the 27 day of October, A.D. 1948. (SEAL) ?»lrs. A.U. Knagga, Countj Cl«rk In and for La Salle County, Texas* THE S TAT E OF TEXAS 0 . t C O U N T V O F L A S A L L E J 3 E l ' T > R E M E , t h e u n d e r s l R n e d a u t h o r i t y, I n a n d f o r L a S a l l e c o u n t y, Te x a s , o n t h i s d a y p e r s o n a l l y a p p e a r e d W. F. A k e r a a n d J u l i e A u t h e l l a A k e r s , his wife, both known to me to be the persons whose names are aubacrlbed to the foregoing Instrument, and acknowledf^ed to me that they each executed the same for the purwses and c o n s i d e r a t i o n t h e r e i n e x p r e s s e d , a n d t h e s a i d J u l i a A u t h e l i a A k e r a , w i f e o f t h e s a i d W. F, A k e r j havlnp- been examined by me privily and apart from her hussband, and hovin/i; the same fully o x p l fl l n o d t o h e r, s h e , t h e s a i d J u l i a A u t h e l i a A k e r s , a c k n o w l e d j ^ e d s u o h i n s t r u m e n t t o b e h e r act and deed, and she declared that she hart wi\lin.7ly sianed the same for the purposes and consideration therein expressed, and that she did not wish to retract It. G I V E N I J N D R H M Y n ^ A N D A N D S K / L f l p O F. - ' I C E t h i s t h e £ 7 d a y o f O c t o b e r A . D . 1 9 4 8 , (SEAL) Mrs A.U. KnagRs, CountTy CJierk:; In and for La Salle County, Texas. THE S TAT E OP TEXAS i ! C O U N T Y O P D u v a l j B E F O R E M E , t h e u n d e r s i g n e d a u t h o r i t y, a N o t a r y P u b l i c i n a n d f o r D u v a l County, Texas, on this day personally appeared Emmett Granvel Murphy, known to me to be the person whose name is subscribed to the fore^^oing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, GlVi^ UNDER I.TY HAND AND SEAL CF OFFICE this the 23rd day of ^ctober, A.D. 1948. ( s e a l ) G e o . V / . W a r d , N o t a r y P u b l i c i n a n d f o r D u v a l C o u n t y, Te x a s . PILED FOR RECORD THIS 27th DAY OP OCTOBER, A.D. 1948, AT 4:00 O^CLOCK P.M. AND DULY HECORi^D THIS ESth DAY OP OCTOREH A.D. 1948, AT 9:00 O'CLOCK A.M. CERTIFICATE THE STATE OF TEXAS X COUNTY OF McMULLEN X I, Dorairene Garia, COUNTY CLERK IN AND FOR SAID COUNTY AND STATE DO HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE (NSTRUMEWT^EREWITH SETJjilJASAPPEARS OF RECORD IN VOL. PAGE _Z2JL, RECORDS That we, Edna Mae Jones, Joined pro fonna by her husband, Jimmle Jones, Johnie Lorene Acker, joined pro forma by her huabend, E.V, Acker, Mabel Mullen Snowden, Joined pro forma by her husband, J.G. Snowden, and Julia Authella Akers, joined pro forma by her husband W. P. A k e r s , f o u r o f t h e c h i l d r e n o f J . E . M u r p h y, d e c e a s e d , f o r a n d I n c o n s i d e r a t i o n o f t h e sum of Ten Dollars ($10,00), and other good and valuable consideration, to us cash In hand paid by Emmett Granvel Murphy, receipt o:' which is hereby acknowledged, have GRANTED, SOLD and CONVENED, and by these presents do GRANT, SELL and CONVEY, unto Dnmett Granvel Murphy, the only olj&ir child of J.E. Murphy, deceased, of Duval County, Texas, as his separate individual property, the followinR described real estate, together with all improve m e n t s t h e r e o n , s i t u a t e d I n D a v a l a n d M c M u l l e n C o u n t i e s , Te x a s , s u b j e c t t o t h e m i n e r a l r e servation hereinafter ment loned, said property bein/^more particularly described as follows, t o - w l t : FIRST TRACT? Section 120, Certificate 1683, ori/rinel Grantee, B,S, •*£ F. purchased from the State of Texas by A.L. Dilworth, fully deacribed in Ledger 68, page 304, Pile 83539 of the General Land Office of Texas, said property containing 640 acres, more or l e s s , a n d b e i n g s i t u a t e d i n D u v a l C o u n t y, Te x a s . SECOND TRACT: The East one-half of Section IIS, Certificate 1679, Original Grantee, B.S.i; P«, purchased from the State of Texas by A,L. Dilworth, fully described in Ledger 61, page 41, file 75731, of the General Land Office of Texas, containing 320 ceres of land, more or less, and being situated in Duval and :M,cMullen Counties, Toxas, THIRD TRACT; The West one-half of Section 112, Certificate 1679, Original Grantee, B.S.v D e p u t y. KcMullen C o u n t y, Te x a s PiLr^ NO. 4981 y CERTIFICATE THE STATE OF TEXAS X COUNTY OF McMULLEN X I, Oorairene Garza, COUNTY CIERK IN AND FOR SAIO COUNTY AND STATE 00 HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE INSTRUMO^TiHEREWITH SET^^AS APPEARS OF RECORD I N V O L , PA G E _ a 2 _ , R E C O R D S OF McMULLEN COUNTY. »IEXAS. r\. a ^ Si IA I !l or I COUK'^ u: L'.SAU-. fv*AR\J' u») I,». >0. dUi-,, vOcmy/DisTncf '^torV LaSalie OL'vm ^ Tsxas. Cto he-w' certify I'-.al ihU' a a lAje arv ccTect cop/ thb same appeai-s on record in off.ce W/lness mj' na-id and i>eal of Office Fatt- •• : W. Va r d GEO. WARD S«al. N o t a r y P u b l i c i n a n d f o r D u v a l C o u n t y, Te x a s . S TAT E O P T E X A S : ITY OP LA SALLE: % BEFORE ME, tha undersigned authority, on Uiis day personally appeared G* Snowden, and kl Mullen Snowden, his wife, both known to me to be the persons whose names are subscribed foregoing instrument, auid acknowledged to me that they each executed the s^ae for tha ^oses and consideration therein expressed, and the said Mabel Uullen Snowden, wife of tba t 9, 0. Sbowden, having been examined by ne privily and apart from her husband, and having • a m e f u l l y e x p l a i n e d t o h e r, s h e , t h e s a i d U a b e l K u l l e n S n o w d e n , a c k n o w l e d g e d s u c h i n s t i r u - to ba her act and deed, and she declared that she kad willingly signed the same for tha ^osea and consideration therein expressed, and that she did not wish to retract it. O l v e n u n d e r m y h a n d a n d s e a l o f o f fi c e , t h i s t h e 2 7 d a y o f O c t o b e r, 1 9 4 8 . Mrs. A. U. Knagga, KR3» A«in}, KSAOOS Seal. Hotary Public in and for La Salle C o u n t y, Te x a s * S TAT E O F T E X A S : TY OP D U VA L : BEFORE KE, the undersigned authority, on this day personally appeared ^%matt Oranval Murphji n to me to be the person whose name Is subscribed to the foregoing instrument, and acknow- ;ed to me that he executed the same for tha pui^oses and consideration tharaia axpraeaad* G i v e n u n d e r m y h a n d a n d s e a l o f o f f l t a , t h i s t h e 2 i r d d a y o f O c t o b e r, 1 9 4 d « Oeo, W. Ward d| October 27, 1948 at 2;00 o'clock P> U. irded: October 28, 1948 at 3:30 o'clock P ttMMM MM W w W W W 5 I A, J ll O: I CCUl-M ■» c!' L W A P, ^ ' , U f . , . c U r . . . o L - f w / D t s m u ; i e r v LaSaiie Oc^-»"ri ^Taxai Doj'^'sbv certifj' I'-al ih'.3* - a true a^y correct copy as .he same appt^cus jt record m ni)- off.ce Wrtness n a o d a n d ^ e a l o f O f fi c f e ' i i Tr.f;:Aii- I pfl.ffI, 1 r Qreen Martin, at ox /'N Tto: General Warrnnty Deed Mrs. Mabel M. Snowden S TA l i : C F T E X A S : COUim 01- LA SALLE: KIIOV/ ALL m BY THESE PRESENTS B l o t w e , Q r o o n M a r t i n a n d w i f e , J u l i a l l i l l y W a r t l n , o f F r i o C o u n t y , To x a a , I n c o n s i d e r a t i o n o f the aurn of Ten and no/lOO Dollars (4^0.00) paid by the grantee hereinafter named, the reoelpt of which is hereby acknowledged, and for the further consideration that aald grantee, Mrs. Mabe] M, Snowden and husband, J. G. Snowden, have executed their promiasory note of even date herowltJ for the aum of liiirti'-rive 'Ihouaand and no/100 DOLLARS ($.36,000»00), payable to the order of Green Kartln whose post office addreaa la Pearaall, Texas, bearing interest at the rate of 4 pel c e n t p e r a n n u m f r o m d a t e u n t i l m a t u r i t y, p a s t d u e p r i n c i p a l a n d i n t e r e s t t o b e a r 1 0 ? ^ I n t e r e s t per annum fron maturity until palO, principal and interest being payable in annual inatallaienta of Tir/o 'Diouaand and no/lOO Dollars ($2,000.00), or more, each, plus Interest,, payable on or b e f o r e t h e l a t d a y o f O c t o b e r, 1 9 4 6 a n d c o n t i n u i n g u n t i l t h e w h ^ e o f s a i d w i t h i n t e r e s t , has been duly paid. It is agreed and understood that if the Orantee pays more t^lan ^2,000,00, on the principal during any one year aaid note stiall not be conaldered in default until the amount paid on said note is leas than $2,000.00 per year plus interest, and grantee ia given ri^t to pay all or any part of said note at any time, aaid note containing the usual pi^vision for 10^ attorney's fees, and being secured by a VENDOR'S LIEN herein and hereby expreaaly re tained in favor of the holder tliereof on the property hereinafter described, and also by a DEED Of TIWST thereon of even date herewith to John W. Willson Trustee, have GliAI^l'ED, SOLD AND CONVW ED, and by these presents do GRAJ^T, SELL AND CONVEY unto Mrs. Mabel M. Snowden, of UoUullen County, Texas, aa her sole and separate Individual property, sold property herein conveyed b^iia^ located and sliuat^d in Dimmit and La Salle Counties, Texas, and containing 2751.6 acres of lam more or less, and being more particularly described as followsj to^wit: FIRST T?IACT: 640 acres of lond, more or less, In La Salle County, Texasj known as Sur, No. 137^ patented to Emanuel Rldgeway, assignee, of the T. T, Ily. Col, by virtue of land scrip No. 2.44, P a t ^ I l o . 2 4 0 , Vo l . K o . 3 5 , d e s c r i b e d b y o i e t e s a n d b o u n d s a s f o l l o w s : BEOIMIKG at a stake in prairie the S E Cor of Sur. No. i;55, by virtue L, S, .243, Tyler Tap R, ' -. J L. B , C o . , f o r S . E . C o r, o f t h i s S u r ; I K l i M C B w i t h s a i d S u r. W e s t 1 9 0 0 v r s . t o i t s S . W. C o r. f o r H I W. C o r. o f t ± i i a S u r j ffiLNCB SOUIH 1900 vra. to S E Cor Sur Ho, 136 by virtue of land Scrip Ho. 243, Tyler Tap I A. IL; or I LAAJ- C O U K V, u : L \ S A u i . « . . H , , , c u ^ . . Vo o m v / D t t t n c t C i M L a S a l l e Ts x a s , D o h e n w v oe^if)' I'tal iW.i ^ a inje afK ccrrect copy as same appears at record in rr.y off.ce Witness •^and ^ — Ci i 3 jltilSUJKHiMa St ix post tne s. rt. cor. oi sur. L. b. 'lyxer rap ii. n. Co,, ror "♦ w. uor, oi j this Sur; T H E N C E w i t h s o i fl Sur. liust 1900 vra to its S. E- Cor. for N, E. oor. of this Surj lliEKCE South 1900 vrs. set stake for 5. E. Corj TffFr'CE West 1900 vrs a stake at S E Cor of Sur, Mo, 138» for S< V/, cor of thla Sur; T H E fl C E I T o r t h 1 0 0 0 v r s t o t h e p l a c e o f b e f r i n n i n g , T F U H D l l i A C T: 6 S 8 , 5 a o r o a o f l a n d , i n L u i i a l i e C o u n t y, ' I ' o x a s , a n d b e l n c a l l o f S u r. N o . 1 4 7 , C e r t , 5 fl , P f e t ' d . t o E . R i d g e w a y, a s s o e , o f J . V. M a s s e y, b y P u t , N o . 4 2 2 , V o l . 3 0 , w M o h c a l l s f o r S 4 0 a c r e s , ' u t w h i c h c r. n t a l n a b y a c t u a l m e a a u r e m e n t o n l y 6 3 & . 5 a c r o a d a a c r l b e d b y r a e t e a a n d bounds as lul'iowQ} S E G i r i ; : : ' " : n p o i n t t h e i » E C o r o f i » u r . l . o . 1 5 b , S c r i p : i o , 2 4 4 , T - T, R , R , C o . , t h e S . C o r . oi' Sur. IJoi 143, Scrip 'iOl, J H Gibson lor i«, u. Cor. of this Surj B C E N C E S o u t h 1 0 0 0 v r a . a s t a k e i n i : Tu i r i e f o r S W C o r. j T F F i ' C E E a a t 1 9 0 0 v r s , u s t f ^ k e t h e S , ' A ' . C o r, o f S u r » K o . 1 4 5 , S c r i p l ! o . 4 0 2 , J , H . O i b a o n , f o r S. £. Cor, oi Sur; 'IVEf'CE 1900 vrs. a stake the li, '.V, Cor. of said Sur. l.o. J]. E. Cor, of thia Surveys T T- T ^ ' C E T t ' e c t 1 9 0 0 v r s t o t h e b e g i n n i n g . P"r.TTt: 19o.l acres of l&ni out of Orig, Sur, No, 148, 1-n the name of k. Salinas, situated I In La Solle County, Tejica, Cert. >'n. ?rt. /'o. 131, Vol. "o. ^'vbjt. I-'o. 1344, the portion oA a a l d L u r. h - r e b y c o n v e y e d , b e l n t d e s c r i b e d b y n o t u a o n U b o u n d s a s f o l l o v / a : j.EGr!'IIlKC at the S V/ Cor of Sec l.o. 147, . V. Liaaaey and the N iV Cor of Sec. iio, 148, A. Solinaa for the .i or of this Sur} 'n!*i::CE E, v/J tn Sec. line l'J21 vra. to a stk at the interaoction v.l th the E. line of E. \r. Alderma i aub-divl aion for tiie 11 E Cor of this Surj ^ HfEMCE S. .vi th said gub-dlviaion line 667.4 vrs. to a atk set in fonce line for the S E Cor of tr J 3 Sur; Ti r S i C E W - w i t h f e n c e l i n e a n d p a s t j j o s t a t 6 6 3 v r s . p a s t C o r. o f s a i d f e n c e , 1 9 2 1 v r a . t o a a t k i n l i n e o f s a i d S e c . I ! o . 1 4 G , f o r t h e S , W. c o r, o f t h i s S u r j ' I v i i r. C E fl , v 4 t h e a i ' . ) l i n e 6 6 7 . 4 v r s . t o t h e p l a c e o f b e g i n n i n g , T^C I'l £40 acres of land in la Salle and Dimmit Counties, 'i^xas, being all of School Sactioa tCo. 13?5, irsued to the T. T. R. H. Co., by virtue of Cert. No. 244, School Pile No. 40248, being i'o. 1468, Pat. IJo. 154, Vol. t!D. 52^ described by metea and hounds as followa: BEGINrr'O at Q stake In prairie, at the SE Cor of Sur l!o, 136, made for T, S. 243, Tyler Tap H. fl, Oo., for the II L Cor of this Survey; ' i y E ; ; C E v i i t h s a i d S u r v e y ' Ve s t 1 9 0 0 v r g t o i t s 3 W C o r o f t h i s S u r ; TiP'^ICE S. 1900 vrs set o atake for S W Cor; E. 1900 vra. sc t a stake for S E Cor; 'IHEICE H, 1900 vra to the place of "beginning. And beinr, the land described as Sections lloa, 137, 143, 147, 138 and part of 148 conveyed to Oro< i Martin and 7/ 7 HcKlnley by il E Hunter, Adm. by deed dated the 17th day of January, 1917, and ahoi* i o f r e c o r d i n Vo l , T- 1 , p a g e 2 0 0 , D e e d R e c o r d s o f L a S a l l e C o u n t y, Te x a s , Grontora guarantee and warrant that tlie lan.i herein conveyed contains at least 2750 acres. k i>iAi tl O." CCUK'T'j ur L'.SAI_uj ^rw/DwnaCtorti LaSal.'e , Texab, Ooherabv' certify toal ihli ;» a irtie ary ccrrect copy di thb Same appean ai record in m>' o^.ce '/Vitness jm hanrt ^nrl np;^! nf r V fi r * % \ i ; r i ; p c r t y > I v - . r h e i r s a n d a a s i g i s To r e v e r. A n d v / e d o h e r e b y b i n d o u r s e l v e s , o u r h e i r a , e x e c u t o r s and Qdiiiir.l3trators> to V/ARSfi-NT AHD FDIEVER DEPEND the title to said property unto the aeiid graji above nt^med/ her heirs and a3ai£?i3, against every ptraon whomaoever lowfully claiming or to cla tlifc aame> or any part thereof. \ E X E C U T E D t h i a 2 8 t h d a y o f S e p t e m b e r, A , D . 1 9 4 5 . (ireen Martin GREEN MAR'mi Julia Tulley tlartin Docuni..nLury Stamps: ^60.50 J U L I A l U L LY : A A R 1 I N S TA ' l E C P T l i X A S ; COTOTf CF FRIO: BEFORE the undersifTied a u t h o r i t y, on this day personally appeared Green f r fl a r t j n t m d w i f e , J u l i a T a l l y M a r t i n , k n o w n t o n e t o b e t h e p e r s o n a w h o a e n o m e a a r e a u b o o r l b o d to the I'oregoing instrument, and acknowledged Co me that they executed the aaiae for the purpoae a n d c o n a i d e r i - . t i o n t h e r e i n e x p r e s s e d . A n d t h e s a i d J u l i a Tu l l y M a r t i n i m v l n g b e e n e x a m i n e d b y m p r i v i l y a n d a p a r t f r o m h e r h u s b a n d , n n d V i a v i n g t h e s a m e f u l l y e x p l a i n e d t o h e r, s h e , t h e s a i d J u l i a Tu i l y M a r t i n a c k n o w l e d g e d s u c h i n s t r u m e n t t o b e h e r a c t a n d d e e d , a n d d e c l a r e d t h a t s h e h willingly 3i£i;ied tlie aame fcr the purposes and consideration therein expressed, and that she id not wish to retract it. G i v e n u n d e r m y h r. n d a n d a e a l o f o i l l c e , t h i a i i S t h d a y o f o e p t e m b e r, A . D . 1 9 4 5 . pn tz C. Sorrell N o t a r y P u b l i c i n a n d f o r F r i o C o u n t y, Te x a s * (seal). P K 11 2 C. SCfUiEXl Filed October 1, 1945 at 3:05 o'clock A. K« i l e c o r d e d O c t o b e r 1 , 1 9 4 b a t 11 : 5 5 o ' c l o c k A . M . :51 f. i L or I (Lvsf CCUKI » UJ" L'.SAL4_» >O. COI-., vOL-my/DwnaOtertL LaSalie \3\a9, Do certif/ toal ih.ii o a irue ary correct copy ds same app)eaj« 9 record /n my off.ce, 'A/itness m\ n a n d a n d S e a l o f O f fi c e 1 \ ^ K H. •t vir lon-Pful^tlHitliiLg Hia«r*l D*«d t.tM* •t al . liarASi'Q^'WAS: or I^;8ALLB: EBOff ALL HEN BY THESE PRSaSHTSt [flAT WljCir lUbol U. ano«d«Q and fauiband, J. 0. atiowden of aald County and 3t«t«, herein eall*^ r ' ' l&.<(o»»ldex>atioo of the «um of Ten Dollari (|10,00) and other good and valuable oon- ^atlon ui oaah In |Mnd paid by Edna Kae JoneA of Daval County^ Tezai« Jotanle Lorene •ton ftawty*; Texas, Julia Autbella Akere of La Salle County, Texas, and Snoett Qranval of ^oUullen County^ Texaa, hereinafter .oaLled Orauteaa, the raceipt of vhloh It iiai^by iledg^, UAVS QRAKTSD, BABOiDiKD, SOLD and CONVEYKD and by theaa praeantt do ORAMT, t o d O Q V W Y u n t o O r a n t e e e , a n i i n d l T l d e d f o u r > fl f t h a ( 4 / 5 t h a ) I n t e r n e t t t M PA X W ' IduaX property to that each will hold an undividad ona-^if.th (l/6th) Interact la and to oil, g«a and other nlneralt aoqylr^id tay Mabel K* Aioxdea fra Oreaa Uaz^tln tod iid.f» TuUy; Martin by DMd AaAed ^ptwbajr S8,. l%Ab, recorded Ootobar 1» 1A45 In ?ol. D»4, It 5A-65 of the Deed ^oorda of La Aalle County, Taxaa, In andundar tht'i'follovlng deao]»: ^ta of land lituatad In La Salle. Coun.t^ andDlJaniltt> County,- l^xae, to^vttt yiRST TBAijgt 640 acrei of land, more or laaa,- in- La Salle County, Taxat, known at Aor* Mo.« patented to Stianuel Rldgeway, asaipiee, of the T« T.. Ry, Co. r by Tirtue of Itnd torlp Pat« lio^ 240, Vol. Ho. deaorlpbd by metet and. bound* a« foll4>«t< |t]^IJINIira at » atake in prairie fihrn M» £• oor« of ^r. Mo. 1S6 by vli^ua^ I»« d. 345, fylep [jR* R. Co.^ for K. S. Cor. of tta^t Sur*( 'THEM06 vith. taid Sur* Ifett 1900 vra. to Itt S. W, oor.. for H-. W. Cor. of tblt flurf > ■'''■''4 SHOB .5^tb Idpo vra, to S. S. Cor. Sur. Mo. 1S6 by ^rtue oT Land 'Scrip Mo. £iB, t:|'X«r Co., H, Cor of this aur. 2 ICSviufi )JQO. iqpa* * ataice far a, S. Cor. of this aur; IC^ Mftrth l&PO vra. to th» beginning) . l lOJD ff^CTt 640 Aorat of land, more or laaa, knnna at Sur« Mor Pat^ntad to I,'W* o' J. tf.. aibtoBA by virtue of Scrip 401^t 4$0, ¥<^1* 30, daaoribadi ■ad t^qr^nda aa fo^Llova; IMlVft at a.poat the «. Cor. af fltir. 147, L. 8. 944, Uyaar Zas^ a. R. Co., ftor H* thM.iuri ...^1 < C J I « l t h e a l d % i r. B a a t 1 6 0 0 r r t * . t o . C o x . f o r S v S , ^ C h ! ) . o f t h l % A u r # } - i iCB Bo»th 14100 vrt. a*t ata)M .w mm i f n t - W — t 1 9 0 P. - W. a a t ^ a » - a . y o y - x ^ y. D n y. ^ n f ^ 9 9 l h " ^ 5>fAf£ 0^■ lEXMf COUKFj 01 L'.SAu-i- cD^v, ^oLfmy/Dtstnd de^v LaSalle Cc*un\ , Tsxab, Do herebv certify t^.ai ihiiT o a true ary correct copy dcj Jib same appear# oi record in rny office.'.Vitness rm- ha^d and Seal of Officfe . , THENCB lortta 1900 vri* to tb4 place of beginning. iPURO TRACT I 638,6 ftores of land. In La Salle County, Texas, and being all of flur. No* 4 lj7 ,Cert.68Pat*dtoE.Rd lgeway,assse,ofJ,V.Masaey,ByPat.Ko,422,Vo.l30,uho lh' for 640 acres, but which oontaina by actual meaaurement only 638.5 acres described by raetea- I bounds as folloifs} BEOIKNIHO at a post the S, E, Cor. of 3ur. No, 158, Scrip No. 244, T. T, R, R. Co., the It*. Cor, of Sur. Mo. 143, Scrip 401, J. H. Qlbson for N. W, Cor. of this Sur; THENCE South 1900 vrs. a stake In prairie for S, W. Corj I THENCE East 1900 vrs. a stake the S.iv, Cor. of Stir. Ho. 145, Scrip No, 402, J. H, Gibson I for a S. E, Cor of this 3ur; I THENCE N. 1900 vrs. a stake the N* W, Cor of said Sur. for N, E. Cor. of this Sur.j THESCE W. 1900 vrs, to the beginning. FOURTH TRACT; 193.1 acres of land out of Orlg. Sur, No. 148, in the name of A. Salinas, altuated In La Salle County, Texas, Cert. No. 68, Pat. No, 131, Vol. No. 4, Abst. Ho. 1344, f portion of said Sur. hereby conveyed, being described by metes and bowrlda as follows: . raJGINNINO at the W. Cor. of Sec. No. 147, J. V. Masaey and the N. T^, Cor. of Sec. No..^ 148, A. Salinas for the N, W, Cor of thla Sur; THENCE E. with Sec. line 1921 vrs. to a atk at the intersection with the E. line of E, Aldeman sub-division for tlie N, E, Cor. of thla Sur; ' THEHCE S. with sal^ sub-division line 667,4 vrs. to a stk set in fence line for the S. B,f Cor. of this Sup; THENCE W. with fence line and past post at 663 vrs, past Cdr. of said fence, 1921 vra to stk in T/, line of said ^ec. No. 148, for the S, cor. of this Surj i THENCE N. with said line 587.4 vrs, to the place of beginning; i FTPTH TRACT? 640 acres of land in La Salle and Dlmmit'.Countlea, Texas, being all of School^ |Sactlon Ho. 138, Issued to the '■T. T. R, R. .Co., by virtue of Cort. No. 244, School Pile No, 40248, being Abst. No. 1468, Pat^ No. 154, Vol. No. 62, described by metea and bounds as folic j BEOINNINO at a stake in prairie, at the S, E. Cor. of Sur, No. 136, made for L. S. 243, Tyler Tap R, R. Co., for the N, E. Cor, of this Survey; I! THENCE with said Survey West 1900 vrs, to its S, W, Cor. of this Surj i I THENCE S, 1900 vrs. set a stake for S, W, Cor; I THENCE E, 1900 vrs. set a stake for S, E. Cor; ! THENCE N» 1900 vrs, to the place of beginning And being the land described as Sections Nos. 137, 143, 147, 138, and part of 148 convoyed to Green Martin and W, yip*. McKlnley by H. E, hunter, Adm, by deed dated the 17th day of January, |1917, and shorn of record In Vol. T-1, Page 200, Deed Records of La Sails County, Texas; I together with the rlghta of ingress and egress at all times for the purpose of taking said 'nlnerals; the said five (S<> tracts of land above described containing 2,750 acres, more or less, and being the same Identical land conveyed by Oroen Martin and wife, Julia Tully Martin by deed dated September 28, 1945, recorded In Vol, D-4 on Pages 53-55 of the ^eed ^ecords of l«a Salle County, Texas, and also recorded In Vol. 88 on Pages 88-88 of the Deed Hecords of Dimmit J County, Texas, to which said D«®d and record reference is here mads for a full and complete description of said land. is i A. I ll Of I cXa? COUK'T'i 0^ clik, ^'nry/DtttnctClartk LaSalls CcviTi,, Texai», Do certif"/ toat o a irua ary correct copy as ihb same appears 0V record tn rn)-' off.ce. Witness rm- nand and ^seal of Office ^'c'ejy oeri'lieu, oi. Idas9a ao mad«; that i^antooa ahall hooelve under such lease or leased faar~firtba (the same Leg ona*flftibil/5th) to each Grantee)) part of all the oil, gas and other minerals taken and under any such lease or leases and he or she shall recelre the same out of the royalty rlded for In such lease or leftes, but Grantees shall have no part in the annual rentals Id to keep such lease or leases in force until drilling is begtn; TO HAVE AMD TO BOLD the same unto the said Grantees Edna Mae Jones* Johnie Lorane Acker» Lia Authella Akers and Einmett Qranval Murphy, as their apparate individual property, th^ip L r a a n d a s s i g n s f o r e v e r, a n d v e d o h e r e b y b i n d o u r s e l v e s , o u r h e i r s , e x e c u t o r i a n d u d m i n i a ^ itors to warrant and forever defend all and singular the said minerals \into the said Qranteos »ir heirs and assigns against all persons nhomaoever lawfully claiming or to claim the same any part thereof,by^ through or under us but not otherwise. WITNESS OUR HANDS this the 27 day of October, 1948. Mabel M. Snowden Mabel M. Snowden J. 0. Snowden J. 0. Snowden S TAT E O F T E X A S : ITY OP LA SALLE: BEFORE ME, the undersigned authority, on this day personally appeared J. 0, Snowden, known kbae to be the person nhose name Is subscribed to the foregoing Instrument, and acknowledged jL'Ba that he executed the same for the purposes and consideration therein expressed, and the Ld Mabel Mullen Snowden, wife of the said J, a« Snowden, having been examined by me privily apart from her husband, and having the same fully explained to her, aha, the said Mabel n Snowden, Hoknowledged such Instrument to be her act and deed,,and declared that she had l^Qgly sloped the same for the purposes and consideration thei*eln expressed, and that she .not wish to retract it* * Given under my hand and seal of office, this the 27 day of October, 1948. Mra. A* U« Knagga MRS. A. U, KKAOQS SEAL. Notary l^iblic in and for il*dedt October 28j 194B ai 2t50 o^clock P Te x a s . N II I A. i li or I ijiif5 9 record in rny off.ce, Witness nand and beal of Office -j 'rp6;ej, Lenit;eu qu ^ IKjT) tsu'JhU^. COuhiTt/D;SlHfCTCL£RK # « « » « it- » Ho. 3cr75 y Maa Jon«a» et al T o j D t fi S l a r a t l o n and Agreeasnt / The Public / r i f fi 3 TAT B O P T K X A S ) ) COUNTY OP HcWTLLEN)KHOW ALL MEN BY THESE PRESENTS: T h a t , W H S R 3 A 3 , I n t h e d i v i s i o n o f t h e E s t a t e o f J . E . K v i r p h y, d e c e a s e d , b e t w e e n E d n a M a e Jones, Jdhnle Lorene Aoker, Mabel Mullen Soowden, Julia Authella Akere and Enimett Oranvel Uurphj, it vas the Intention of the parties that the one who 2*eceivad surface rights would also receive the full right to receive all rentals on existing leases and bonuses and rentals on an/ future leases off of the land on which the surface rights were conveyed to hln or herj and, WHEREAS, a question has arisen as to the Instruments executed being claar regarding rentals o n e x i s t i n g l e a s e s , a n d a s t o r o ; ^ l t y A h a t l a t o b e r e s e r v e d I n f u r t h e r l e a s e s f o r ; b h e b e n e fi t of the respoctlve lessor and the ether children of J, B« Murphy, deceajed, their heirs and asal^^ N O W, T H E R E F O R E , f o r a n d I n c o n s i d e r a t i o n o f t h e b e n e fi t s r u n n i n g f r o m o n e t o t h e o t h e r, a i l ' i n o r d e r t o c l a r i f y e a c h d e e d e x e c u t e d d i v i d i n g t h e E s t a t e o f J » E * M u r p h y, d s c e a s e d , w e , E d n a M a i Jones, jolDsd pro forma by Imt husband Jlmnl® Jonea, Johnle Lorene Acker* Joined pro forma by heir husband S. V* Acker, Mabel Mullen Snowden, joined pro forma by her husband, J« 0. Snowden, Julia Authella Akers, en adult feme sole, and Vlrgldlt Gertrude Akers Murphy, an adult feme sole, and sole devisee under ths will of EmmettiOranvel Murphy, deceased, do hereby execute this Instrumen and hereby declare, that in making the division of the property In the Estate of J, E. Murphy, deceased, It was the Intention of said parties to granteto the party receiving the surface, the right to receive all rentals from oil, gas and mineral leases then on s aid land so granted and to receive ell bonuses and rentals on leases that might thereafter be made by the party to whom said surface was conveyed by Special Warranty Deed, provided, however, that the Lessor In said Oil, gas and mineral lease, ao axeouted by him or her, should reserve, In each oil, gas and min eral leases ao executed, a basic one-eighth (l/8) royalty Interest (4f all royalty interest was owned by J» B* Murphy at the time of his death, then a full l/6th royalty would be reaervedj otherwise a proportion of l/8th reserved) for the benefit of ths Lessor and the other children o J. K. Murphy, deceased, and those claiming under said chlldrsn or childj and this is particularly true as to the land received by Edna Mae Jonea In McMullen County; the land receli^ed by Johnle Lorene Acker in McMullen County; the land received by Julia Authella Akera in La Salle County; and the land received by EmnBtt Oranvel Murphy In McMullen and Duval Counties, fexas, all of whlc division was by Special Warranty Deeds to said Bmmett Orwivel Murphy, the deed of Emmett Oranvel Murphy being dated October 21, 1940» and recorded in Volume 70, pages 527-531, of Duval County Deed Records, reference to which la here t&ade for all piu^posee^ and the other deeds being execu- | ted on or about the same date, being recorded in the respective counties where the land is loaate and reference to each of which la here made for all purposes* b TA l C Of COUNTV ur L\SAu-^- MARc/Jiii.w Irourw/DwtrtctdertL LaSaiie , Texas. Cio certif/ loal lh wARc'.i»ii.v^ vOumy/Dt5tric«d JULIA AUTUBLIA 1KER3, •n ftdult faiBB lolor known to «• to b* the p«jreon iiho«« oams 1b ^ubsorlbed to the foragolng Inttru at| and aokoowladged to n« ttiat shd Axaeutad the aamo for tbo^urpoaot and oonalderatlon therein szproaaad. aV i BVUHDERfIHANDANDSBAL00 |fFFC I B%hni Q i dayofDeowube,r1953r aSAL /•/ H, WlXdanthal H< H. wiLi£ir;aAL H o t a r y P u b U o i n « 3 d f o r L a S t t l l e C o u n t y, Ta x t a . THB3TATBOPTKXASj 4}0U)1TY OF JIH iVBU^} BEFORE HE« the underalgixdd authority* on thia day paraoaally appavad VIROIVIA OERTRUDS ASB! M O R P H Yi a n a d u l t f e m e a o l a ^ k n o w n t o m e t o b o t h a p a r a o n w h o a a n a n a l a a u b a o r l t i a A t o t h e f c r e g c i n Inatrujaent, and aokioaledged to we that aha axaoutet^tha aams for the purpoaea and conslAaratlon therein expreaaad* aV i EHUD fl ERMYHAm i Am)SEALO}F |tPC I BTHtfI6lh t dayofDecember*1953« SEAL /a/ Judith ao«as JODXT? OOlttZ 9 o t a r X f ; P u b l l o I n a n d f o r J i n W e B i C o u n t y * Ta z a a * niediDeoember l6, 1953' at llilfO A»M. ReoordedtDeoember I6, 1953 At 2 lis -flfth8 (2/5ttB) Interest as her separata Individual property in and to < of the oil, gas and other minerale In and to the land hereinafter described, the mineral interet hereby conveyed being all of the interest ocnvey^d by Mabel U. S^owden to Johnle Lorene Acker and Emmett Granvel Murphy by Peed dated October 27« 191^6, and recorded in Vol. Irlf, pages 31I-31; P e e d R a c o r d a o f L a S a l l e C o u n t y, Te x a s * S a i d l a n d i s a i 4 u * * « d i n L a S a l l e a n d D i u m l t C o u n t i e s , Te x a s , a n d d e s c r i b e d a a f o l l o v s f FIRST TBvCT; 640 acres of land, more or less. In La Salle County, Texaa, known aa Sur« M o * 1 3 7 , p a t e n t e d t o S n a n u e l R i d g e v a y, a s s i g n e e o f t h e T * T * R y « C o . , b y v i r t u e o f L a n d S c r i p H o , 2!i4, Pat. No* 21^0, Vol, Bo, 35; SECCyp TRACTr ^0 acres of land, more or less, knoan as Sur, Bo* 143# Patented to I« W, Bean, assee* of J* H* Oibson by virtue of Scrip Ho* t|.01, pat. Ho* 1^23f Vol* 3O; THIHP TRAGYi 638.$ acrea of land In La Salle County, Texas, and being all of Sur* No* 147, Cert. ib8, patented to E. Ridgeway, asaee. of J* V. Hassey by Pat. No* 1^2, Vol* 30, which calls for 61^0 acres, but which contains by actual nsaaureinent only 638*5 acres; FOURTH TRACT: 193«1 acres out of Orig* Sur, Mo. ll+S, in the name of A. Salinas, aituatfl< In La Salle County, Texaa, Cert* No* 68, Pat. No. I31, Vol. Ho, Ij., Abst. No* described by metes and bounds as followsr BEOINIING at the SW corner of Soc. No* 1^7, J. V* Massey and the N* W* corner of Sec* No* 148, A. Salinas for the N« W* ccr* of this sur*; THENCE E* with Sec* line 1921 vrs. to a atk. at the intersection with the £• line of B. \ 1 A l d e r m a n s u b d l v l a l o n f o r t h e N * E * c o r * o f t h i s a u r, ; I THENCE 3* with said subdivision line 567*1| vra, to a stk set in fmce line for the 3. E. I cor* of this eur.; THENCE W. with fence line and past post at 663 vrs. past cor. of aald fence, 1921 vrs.to a 8tk In W. line of said Sec. Ho* ll^ , fop the 8. W. cor* of this sur.; THENCE N. with aaid line 567*lf vrs. to the place of beginning; FIFTH TRACTi 61+0 acres of land In La Salle and Plwmit Counties, Texaa, being all of School Section No. I38, Isfli^d to the T* T. R. R* Co., by virtue of Cert. Ho* 2^4, School File No* 1^02/^8, being Abst. No, lif66, Pat* Ho. ISkt Vol* No* $2; together with the righta of ingraaa and egreas at all times for the purpose of taking said mine rals; the said five trac_t of land above described containing 2,750 acres, mora or leea, and beln, the same land conveyed by Qrean Martin, et ux to Mrs. Mabel M. Snowden by Deed dated September 28, 1945, recorded In Vol, p-^. Pages $3-55. Daod Record* of La Salle County, Texas, and also re corded in Vol. 86, Pages 86-88, Peed Records of Plaaait Couaty, Texas, to which Deed and record* reference is here nude for a full and canplete description of aald land* a I A.) li or ('cAAf COUKTi ur w >0i cDk. wOunry/D«tnct Ctet day of December, A* D* 19^3* SEAL /s/ Riohard L« Dobie, Jr* ^ Hotary Publio, La Sale C o u n t y, Te x a s P i l e d i D e c B B b e r 3 1 , 1 9 $ 3 f \ \ \ $ $ P. M . RecordedrJaauary 2, 1954*^^ 9x30 A O E O » E . C O O K , C O U N T Y C L E R K , L A S / I L L E C O U N T Y, T E X A S , « « « » « - « » 01 A. t ii or I COUkT'j uf L'\SAi_Li-* .^'O^-cDi-s uOumy/DtetrtctCtsrw LaSalle Couni^^ Taxas, Dohefaoy certify tnai U"ij3 a irue anr' correct cop)' as '^h^ same appease ot record in nny office, Witness my hand and &eal of C^ce ^neieo* ueritfiea. of. That we, Mabel Mt Snowden^ Joined pro fonts by her husband, Tonjr Snowden, of La Saile County, Texas, in consideration of the sum of Ten ($10a00) Dollars and other good and valuable consideration to us in hand paid by Johnie Lorene Acker, of McMullen County, Texas, the receipt of which is hereby acknowledged^ have granted, bargained, sold and conveyed and by these presents do grant, bargain, sell aixi convey to the said Johnie Lorene Acker, and undivided one-fifth (1/5) interest as her separate, sole and individual property in and to all of the oil, gaa and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M* Snowden by deed dated December 31j 1953> and recorded in Volume X-li, Page 3$5> Deed R e c o r d s o f L a S a l l e C o u n t y, Te x a s . S a i d l a n d l a s i t u a t e d i n L a S a l l e and DlAolt Counties, Texas and described as folioffst FIRST TRACT: 61^0 acres of land, more or less, in La Saile County, Texas known as Sur# 137^ patented to Emanuel Ridgeway, assignee of the T. T. Ry» Co., by virtue Land Scrip No 2hht Pat. No 2kO, Vol, No 35* SECOND TRACT: 6^0 acres of land, more or less, known as Sur. No. Iii3, Patented to I. W. Bean, assee. of J» Gibson by virtue of Scrip. No« iiOl, Pat. No ii23. Vol. 30: THIRD TRACT; 638» 5 acres of land in La Salle County, Texas, andbeing all of Sur. li^?, Cert. 66, patented to £• Ridgeway, assee. of J« V» Massey by Pat. No. k22, Vol. 30, which calls for 6L0 acres, but which contains by actual measurement ony 638»5 acresj FQI^TH TRACT: 193*1 acres out of Ori. Sur. No« lliS, in the name of A. Salinas, situated in La Salle County, Texas^ Cert* No. 66, Pat. No. 131, Vol- No. Abst. No 3mi> described by metes and bounds as follows: BEGINNING at the SW corner of Soc. No Ihl, J* V. Massey and the N. W. Corner of Sec. No. li^S, A. Salinas for the N. W. cor. of this s u r . ) THENCK £. with Sec. line 1921 vrs* to a stk. at the intersection with the £« line of £* Alderman subdivision for the N. E. cor« of this S u r v e y, ; s>lAliEOr IHXA^^ :' COUKfVOr USAoi; - ^ ~ • •< *» • LX^ -SOl'tDK, CouriMO^tHrki QmV LaSaile Cc^ ■, Texab. Do heraoy certjfy tnai l^J3 ^ a tnje ar*' correct oop-y as ihb same appoars at record in nny office. Witness mr n a n d a n d i > e a l o f O f fi c e . . .. ^ KO /| School File No. ii02U8, oeing Abst. No 11468, Pat. No» iShi No, $2; together with the rights of ingress and egress at all tiroes for the purpose of taking said m i n e r a l s ; t h e s a i d fi v e t r a c t s o f l a n d a b o v e desceibed containing 2,750 acres, more or less, and being the same land conveyed by Green Martin et ux to Urs. Mabel M. Snowden by ^eed dated September 28, 19kS» recorded in Vol, JJ-ii, Pages $3-55J i)eed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of ^immit County, Texas, to which Deed and recoras reference is here made for a full and complete description of said land. To h a v e a n d t o h o l d t h e s a m e u n t o t h e s a i d J o h n i e L o r e n e A c k e r a s h e r s e p a r a t e a n d i n d i v i d u a l p r o p e r t y, h e r h e i r s a n d a s s i g n s f o r ever; and we do hereby bind ourselves, our heirs, executors and ad ministrators to warrant and forever defend all and singular the said minerals unto the said Johnie Lorene Acker, her heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by through or under us but not otherwise. Witness our hands this the 25th day of March, 1965* Uabel M. Snowden « r liT- : ^ Tony>^nowden Tony>^noi -C'' the state of TEXAS, J County of Sail© j BEI-ORE Mt. the undcrsi^^ncd. a Notary Public. . . m. . . .n THo n Cy o uSn tny ,o wTde xea ns , Mo an b et hli s M d. a yS npoe w rsonally d e n w aVp fp e eared of Tony Snowden known to me to be the persons whose names are subscribed to the foregon i g Instrument, and acknowe l dged to me that they executed the same for the purposes and consd i erato i n theren i expressed. And the said Mabel M. SnoWdsn wife of the said ' Tony Snowden having been examined by me prtvily and afwrt from her husband, and having the Sjimc fuly explained to her, she, the said M, Snowden acknowledged such instrument to be her act and deed, and declared thar she had wll^jn^ signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it. GV l nN yNt^iMY HANDAND SEALOF OFFICE, thsi /^^ay of ^Ap^l a. D. 19 6^ alAlQOr IHXA,^- • C Q U K V Vo r L \ S A u - i ; ' MARo^u^11.. ^ .801 -cDk Countv/Distflct OmK LaSalie Co^nt ^ Taxas. Do heraoy •certify Loai ihi3 ^ a true aW correct copy as ihe same appem record in rm' offfc^ ^ATrtness rm* n a n d a n d i s e a l o f O f fi c e ' n i CORRECTION WARRANTY DEED THE S TAT E OF TEXAS § K N O W A L L fl E N B Y T H E S E P R E S E N T S : COUNTIES OF LA SALLE AND DIMMIT § That we, MABEL M, SNOWDEN, joined pro forma by her husband, J O E G , S N O W D E N , o f L a S a l l e C o u n t y , Te x a s , i n c o n s i d e r a t i o n o f t h e s u m of TEN DOLLARS ($10.00) and other good and valuable consideration to u s i n h a n d p a i d b y J O H N I E L O R E N E A C K E R , o f M c M u l l e n C o u n t y, Te x a s , t h e receipt of which is hereby acknowledged, have GRANTED, BARGAINED, SOLD A N D C O N V E Y E D , a n d b y t h e s e p r e s e n t s d o G R A N T, B A R G A I N , S E L L A N D C O I W E Y to the sa^xJOHNIE LORENE ACKER, an undivided non-participating one- /r £/2/ , fi f t h / u L / 5 7 o f t h e w h o l e ' a n d ' e n t i r e r o y a l t y i n t e r e s t a s h e r s e p a r a t e # sole and individual property in and to all of the oil, gas and other minerals described below, subject to the reservation hereinafter made. S a i d l a n d i s s i t u a t e d i n L a S a l l e a n d D i m m i t C o u n t i e s , Te x a s a n d described as follows: F I R S T T R A C T; 6 4 0 a c r e s o f l a n d , m o r e o r l e s s , i n L a S a l l e C o u n t y, Te x a s k n o w n a s S u r . 1 3 7 p a t e n t e d t o E m a n u e l R i d g e w a y, a s s i g n e e o f t h e T. T, R y. C o . , b y v i r t u e L a n d S c r i p N o . 2 4 4 , Pat. No, 240, Vol. No. 35; S E C O N D T R A C T: 6 4 0 a c r e s o f l a n d , m o r e o r l e s s , known as Sur. No. 143, Patented to I. W. Bean, assee, of J. H. Gibson by virtue of Scrip. No. 401, Pat. No. 423, Vol„ 30; THIRD T R A C T: 638.5 acres of land in La Salle C o u n t y, Te x a s , a n d b e i n g a l l o f S u r . 1 4 7 , C e r t . 6 8 , p a t e n t e d t o E . R i d g e w a y, a s s e e . o f J . V. iMassey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 63B.5 acres; FOURTH T R A C T: 193.1 acres out of Ori. Sur. No, 148, in the name of A. Salinas, situated in La Salle C o u n t y, Te x a s , Cert. No. 68, Pat. Wo. 131, Vol. No. 4, Abst. No. 344, described by metes and bounds as follows2 BEGINNING at the SW corner of Sec, No. 14 7, J . V. M a s s e y a n d t h e N . V 7 . C o r n e r o f S e c . N o . 148, A. Salinas for the N. W. corner of this * sur.; THENCE E. with Sec. line 1921 vrs. to a stk, at b I A. IL or I CCUNT'I Oi L .'.SAt t,/- MAKc' -;ll h , ^ >OV-cOj^ 'MntffOOiM CiafV LaSaile , Taxas, Do hewy certify t'*tai ^^,i3 a true anr correct copy as ih6 same appeM 01 record in trw office. Witness mv hand and Seal of Office . Thereoy Lertited, or. S THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur,; T H E N C E W. w i t h f e n c e l i n e a n d p a s t p o s t a t 6 6 3 vrs, past cor. of said fence, 1921 vrs, to a stk. in W. line of said Sec. No, 148, for the S, W. cor. of this sur.; THENCE N, with said line 567.4 vrs. to the place of beginning; FIFTH T R A C T; 640 acres of land in La Salle and D i m m i t C o u n t i e s , Te x a s , b e i n g a l l o f S c h o o l S e c t i o n N o . 1 3 8 , i s s u e d t o t h e T. T. R . R . C o . , b y v i r t u e of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No, 154, Vol. No, 52; together with the rights of ingress and egress at all times for the purpose of taking said minerals; the said fi v e tracts of land above des cribed containing 2,750 acres, more or less, and being the same land conveyed by Green Martin, et ux. to Mrs. Mabel M, Snowden by deed dated September 28, 1 9 4 5 , r e c o r d e d i n Vo l . D - 4 , P a g e s 5 3 - 5 5 , D e e d R e c o r d s o f L a S a l l e C o u n t y, Te x a s , a n d a l s o r e c o r d e d i n V o l . 8 8 , P a g e s 8 6 - 8 8 , D e e d R e c o r d s o f D i m m i t C o u n t y, Te x a s , to which Deed and records reference is here made for a full and complete description of said land, T O H AV E A N D T O H O L D t h e s a m e u n t o t h e s a i d J O H N I E L O R E N E A C K E R a s h e r s e p a r a t e a n d i n d i v i d u a l p r o p e r t y, h e r h e i r s a n d a s s i g n s f o r e v e r ; and we do hereby bind ourselves, our heirs, executors and adminis trators to warrant and forever defend all and singular the said royalty interest unto the said JOHNIE LORENE ACKER, her heirs and assigns, against every person whomsoever lawfully claiming or to claim the same o r a n y p a r t t h e r e o f , b y, t h r o u g h o r u n d e r u s , b u t n o t o t h e r w i s e . This Deed is made in place of and as a Deed of Correction of a Deed executed by Grantors herein to Grantee, dated March 25, 1965, and r e c o r d e d i n Vo l . 1 3 5 , P a g e s 1 3 5 - 1 3 6 , D e e d R e c o r d s o f L a S a l l e C o u n t y, Te x a s , w h e r e i n b y e r r o r o r m i s t a k e . G r a n t o r s c o n v e y e d t o G r a n t e e a n undivided l/5th mineral interest in and to all of the oil, gas and other minerals, when in truth a^ Grantors should have conveyed an undivided non-participating IvStn'^of the whole and. entire royalty interest, and this instrument is made by Grantors and accepted by Grantee in order to correct said mistake, and in all other respects bfAre Of lE/At C O U K T Vu r L N S A o u . ^ MARjAnii.^/- .^0^'cDk Cwnty/DiitrtctCtoiV LaSalle Lo^ni , Taxab. Oo he^i^ certify tnai ^^.i3 ;> a true ary ccrect cc'py da ih& same appeai^ or ' ' e . : > o f c i ; n o l f . c e . \ Vi t n e s s r r e \ r-a"ia a-d ^eal of Office 1W5 \ .ePvt.e^. .,1. Ski WITNESS our hands this the day of 1980. 7?J_ clA/ 7?/. ^ Mabel M. Snowden ACCEPTED this day of KL- Edwin Va l e n t i n e Acker THE S TAT E OF TEXAS COUNTY OF LA SALLE B E F O R E M E , t h e u n d e r s i g n e d a u t h o r i t y, o n t h i s d a y p e r s o n a l l y appeared JOE G, SNOWDEN and ISABEL M. SNOWDEN, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the ssime for the purposes and consideration therein expressed. ^QIVEN UNDER my hand and seal of office on this the "^^day of , 1980. Notary:^XPublic, State of TIexas THE S TAT E OF TEXAS COUNTY OF MCMULLEN B E F O R E M E , t h e u n d e r s i g n e d a u t h o r i t y, o n t h i s d a y p e r s o n a l l y a p p e a r e d J O H N I E L O R E N E A C K E R a n d h u s b a n d , E D V J I N VA L E N T I N E A C K E R , k n o w n to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed. GIVEN UNDER my hand and seal of office on this the f^^'day of , 1980. N o t a r y ' P u b i i c , " s t a t e o f Te x a s bfAreor IHXA^ r-V:-.*- COUKPi or LASAtU: *.; 1 i; * MARoAnu.^v* ^^i^cC>{.CounM)MrldCteV LaSalle Ccuriij^ Taxa^. Oo Umrnif certify t'-iat ih.ia « a true anr correct cop>' as same appoM oi record in m office^ Wii&m% mr hand and Seal of Office ^ 1 KARDELL RESPONSE TO REQUEST FOR PRODUCTION NO. 8 B r03473RPT SNOWDEN DISCOVERY LABELS.OOCX 1 10/9/20122:19PM 121 OIL AND GAS LEASE T H E S TAT E O K T E X A S § C O U N T Y O K I . A S A L L E § K N O W A L L M K N R Y T H E S E P K K S E N ' l ' S T H AT: unit COUNTY OK DIMMIT § I'HIS AGRK£MENT« is made on (he ist day of Dccembcr, 2009, by arid bct^S'cen MAUI'l.N M U R P H Y S N O W U K N , M I C K E Y J > A K K E L L S N O W D E N , PAT R I C I A J . S N O W D E N KAR13ELL, and MARV DELILLA SNOWDEN, (whose mailing aHJre^is is c/o Ptttrlcin J. Snowden Kardcll, 66 Croatlinc, Pleosanion, Texas 78064), ast "Lessor," whether ono or more, and SWIFT ENERGY OPERATING, LLC» a Texas Itmitod liubllity coiiipatiy (whose mailing uddrcss ts 16825 Northchasc Drive, Suite 400, llousto», Texas 77060, os "Lessee." WrrNESSKTH: 1. (yrant of Lease, A. Lessor, in consideration of Ten and N(V|00 Dollars ($10.00) and olher valuable con^idcrariun in Itand paid by LciKtec, the rccelpt of which >s hereby Auknowledged, and in eoniiidcratiun of thu royulties herein provided and ihe eovsnanU, agreements and obligntionK of Lessee hemin contained, and upon the conditions ond with the limitations hereinaAer set forth nnd eon(uined, hct^by leases and IcLs exclusively unto the suid Lessee, for the purposes of invuitgating, exploring, pn)spectjne, drilling and mining for. und producing oil and gas ("oil and gos" for all purposes ofthis tuane being defined to include oil, gas, casingiiead gas and the byproducts thereof, and such olher hydrocarbon substances and sulphur as are necessarily produced with and incidentaJ to the production of oil or gas from wells on t^ie leased premises), Uying pipelines, building tanics, roads, power slailons, telephone lines and other structures thereon to produce, save, take care of, treat, store transport ond own said piuducts (but not including the construction of housing for its employees), (he foHowing described lands and premises in La J^allc end Dimmil Countietf, Texas (sonietinies referred to herein as "said Land" or "Incased Premises"), to-wit: UlCfNC 2,137,18 acrcsofland, more or less, outofUie'l*,T. !<, K.Conjpany Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, AbstractNo.?28; the J. V. Ma-sscy Survey No. 147, Abstract No. 746; and the W. M, Clary Survey No, 138, Abstract No. 1609, La Salle County, Texas, and the W, M. Clary Survey Nu. 14^ Absti^iclNo. 1486, Diminl County, Texas, and being mure particularly described In that certain GenenjI Warranty Deed dated September 28, 194S from Green Martin and wife, Julia Tully Martin to Mrs, Mobel M. Snowden and husband, J. (5. Snowden. recorded in Volume D-4, Page 53, Deed Rcucrda of Sulle Count>\ Texas. Por the purpn.se of calculating the puyinents hereinuHer provided for, the Lensed Premisea shall be treated as eort>pri.';ir»fi 2.137.18 acres of land whether it acliiully comprises more or less. U. 'Ihis I^aKS i.s expressly made subject to any and all casements ulTecting said premises, as shown by the records of the Couniy Clerk of the County In which the Leased Premises are situotcd, ^(fyc I S3 40 1 2 2 to which reference is here made. C. Lessor expressly EXCEPTS from this Lease and RESERVES to Lessor, all minerals of every kmd and character, m, on und undortho !ard&above described, except only (iio oil and gai> as herein deflncd In the fon;golng provisions ofthis Section 1. In addition, Lessor EXCEPTS fVom this Lease, and RESERVES to Lessor, the right to use said land and the surface thereof for tiic purposes of investig«tlng, exploring, prospecting, dciliing, mining for and producing bII such ulljor minerals, which are cxccpted from this Lease, layint; pipelines, and building roads, tankii, power stations, Tciephone lines iind oth^r strudures ttiereun to tnini^ prodiicc, save, take care of, treat, transport, and own !»uid excepted other minerats; provided, however^ that such operatiotis shall not unreasonably interfere with Lessee's operations and use of the Leased Premises. 2. Te r m . A. Primary Term. Subject to the other provisions herein contained^ this Lease shall be for a term of three years C3) from the date hcrwf {heroin cajled "pn^nary term"), and so lonjj thereafter an this Lease may be maintained in force and efTe^^t under the other terms and provisioit^i hereof. B. Option to Extend Primary Term. Notwithstanding anything contained herein to the contrary, Lessee shall have the option lo extend the primary terra ofthis lease as to the lands then covered by this le^ise for an additional two (2) years (that ls» to the date of Doccmber l, 2014) by paymenl or tender to Lessor, on or before December I, 2012, of an amourit equal to Six Hundred Dollars (J600.00) per net mineral acre for the lands then covercdby this lease. Tliis option to extend will only be available if Lessee should drill at least one well during the primary tcmi ofthis lease, 3, )Rovaltle:t: The royalties to be paid to Lessor are; A. Oil: On all oil and on all liquid hydrocarbons extracted from gas under the provisions of SubpafHgraph B.(l) below, twenty-flvc pcrccni (25.00%) of that produced and .saved from said lands, the ^ime to be delivered to I.,e^i»ur into the storage tanks or Into tiie pipeline to which tlie wells may be connected, ur, at l^essor*:: option, s»uch oil and liquid hydrocarbons shall be sotd with Lessee's oil and liquid hydrocarbons at the same pricc received by Lessee [but in no event for less than the market valuc.thereof). or, et Lcissor's optioti, such products shall bo delivered to Lessor at the weils into tanks or other receptacles to be ftirnished by I>essor. JvCssor's options hereunder may be exercised from time to time, and the exercise or failure to oxerciKc an option at any time s^k&ll not constitute a waiver of Lessor's right to exercise ftirther options. U, Gas: (1) On gus produced from said lands, including casinghoad gas aiKl residue gas at the tailgate of any plant through which gas produced from said lands may be procewcd, twenty-ftvo percent (23.00%) of the market value uf the gas at the place of use or sole by Lessco, or at Lcssor'a option, twenty-five pcrccnt (25.00%) of tftc {jas, In kind, either at the well or at the outlet side of Ihe .separatOT, hertshiatter provided for, or at the tailgate of any plant through which gas is processed. Prif>r jSw 2 Q3 40 I A 1 2 3 to the use or sale of any gas produced from suit! lands, L<;sse« sihall run such gas through a field-type separator or other cumpurable equipment prdinurily usicd in the industry for the purpose of separating, cxtniclingandsaving liquid and Ilqucflnble hydrocarbons recoverable from the gas, and royalties shall be payable on the remmning gas under the provisions ofthis Subparagraph B(l) and royahics on the extracted liqu Ids shall be payable under the provisions of Subparagraph A. above; provided, however, Lessee shall not be required to run the gas through aHeld-type separator or comparable equipment if the gas Ik to he processed in a recycling, absorption, pressuring or other plant belonging wholly or in purt to the lessee or any affiliated or subsidiary company, or if the liquid hydrocarbon content of the gas is so 2>mal] as to make the installation and operation of fleld-lypc separators or comparable cqiiipn)enl unprofitable, or if the pressure of the gus is such tiiat running the gas th/ough separators or comparable equipmeiil would diminish the ability Co sell and deliver the separated gns against existing gathering system or pipeline pressures. (2) On condensate and all other products separated, extracted or manufactured ftoip goH produced from said lands by any extraction, absorption, pressuring or other plunt belonging wholly or in pHrt to Lessee or any alfilialed or subsidiaiy company, twenty-five percent (1^5.00%) of the market value at the plant of all such condensate and other products so separated, extracted, or manufactured, or, at Lessor's option, rwenty-Hve percent (25.001^) of such condensate ond oDier products in kind shall be delivered lo Lessor at the plant outlet. In the event of the blending of any part of such condensate or other products with cherrncul additives lor making any product therefrom, the royalty on suuh products, whether paid in kind or at market value, shall be calculated at the plant outlet on the resulting blended product, less lessor's proportionate share of the dircct cost of such chcmical iidditivcs and the blending thereof. (3) On condensate ar>d all other products separated, extracted or manufactured from gas produced fh)m said lands by an exlraclion, absorption, pressuring or other plant belonging to a third party or parties, Iwcnly-five percent (25.00%) of the amount received by Lessee from the sale of condensate and other products separated, extracted or manufactured by said plant imd credited lo lessee under the tcnns of Lessee's contract with such plant. (4) The market value of uny gus, condensate or other products of gas shall never be less than the total proceeds! received by Lessee or by any alfilialed or subsidiary company by reason of the sale of.such ga.s, condensate or other products, llie total proceeds received shall include, but not be limited tu, tl)e fair value uf ull coniiiderotion received by Lcs.see or by any afTiliated or subsidiary company related to the marketing and/or dedication of gas, condensate, other products or reserves (such as take-or-pay payments, takc-rract shall contain ndequnic provisions for ilie redetennhiaiiun, al least annually, ofthe pricu for which the gas is so id, to ensure (hat thu price tor such gus shall always be reasonably equivalent lo the current market value of gas, when produced, in Texas Railroad Commission District Nos. 1, 2 nnd 3, the market value of the gas sold under such contract sliall be ^d'a'c 3 aa 40 124 costs, or, at the option of LMSor, Lessee shall acoount lo L&wof for twenty-five perccnt (25.00%) of the gross amount received by lessee from the sale of such sulphur (2) (n the event Lessee should contract with another for the removal or recovery of sulphur content from gas under an arrangement whereby die processor retains all or a portion of the sulphur so n^noved or recovered for a price less than market value, in compensation fur sucli removal or recovery, (hen. and in either of said events. Lessor shall be paid as royalty (he maikox value of iwenty-live {>crcent (25.00%) of such sulphur so removed or rccovcrcd from such gas. (3) It is further provided tl\at if gas produced from satd lutids Is proee^sed by Lx)S3Cc for the removal and/or recovery ofi'ulphur content therefrom, und a portran of such gas is used oreonsumcd in the operation of the plant or other facility so utilized in such removal nnd/or recovery, Lessor shall be paid as royalty (he market value of twenty-Hvo percent (25.00^0) oftho gtts so used or consumed in the operation of the plant or otlicr fnciliiy. D, Ciencral Rovaltv Provisions: (t) Accounting and payments to Lcswr of royalties from the production of oil and gas from any well shall cominencc no later than ninety (90) days after the Initial commencement of production in paying quantities. Thereafter, onlesji otherwise spccitloally provided herein, all ticcuunllngs and paymetits for royalties shall be made on or before the 28th day of the second calendar month following the calendai month in which the production occurred. In the event any payment for royalties is not received by Lessor from Lessee within five (5) days of (he date it is due and payable, Lessee shall pay to Lessor an additional sum ("Late Charge") equal to five (5'/i) perccnt of the amount due. In addition to any other charges permitted herein, if Lessee tnflke,s a payment of royalties to Lessor by check and the check k returned to Lessor hy Lessee's bank marked NSF (Non Sufficient Funds), then an additional charge of $50.00 per chock returned shall be paid by l^essec to Lessor. Should Lessee at any time fail to make royalty payments to Lessor on or before the last day of the second calendar month following the calendar month in which production occurred from any well, and sJiould the default continue for a period of thirty (30)dHys after Lessee's receipt of written dcmond tlverefor fruni Lc;>sor, Lessor may, at Lessor's clcctlon, cancel this Lease as to such well and said lands ascribcd to such well by giving I^essee thirty (30) days advanced written noticc of such cancellation. I^csseo may avoid such cancellation by paying Lessor all sums (inciuding Late Charge and interest) then owed by Lessee to Lessor prior tothc expiration of said thirty (30) day period. Unless otherwise herein expressly provided, and whether or not Lessor shall have cancelled thl.s lease as to any well and said lands oscribed to such well for non-payment, any royallieb which are suspended and not paid to Lessor within the time periods spccificd therrfor shall accrue interest at the rate often pcrccnt (10%) pur aimum fToui the due diitc until paid. Interest due hereunder shall be cotnpounded annually. Acceptance by Lessor oi'royalties which are past due shall not act as a waiver or estoppel of Lcssot^s righi to receive or rccovcr any and all interest due thereon under the provisk»ns hereof unless the written acceptance or acknowledgment by Lessor to Leasee expressly so provides. Any tender or payment to Lessor of a sum less than the total amount due the Lessor hereunder which Ls made or intended to be made as an ofler of settlement or an accord and satisfaction by or on behalfof Lessee, must be oceonipimled by a Noticc of Settlement OITcr,«> denominated, addressed to Lessor. Any suth offer of sctlleinent submitted .solely by (he tenilur of h check containing language of scttlemcnl or uecord and satisfaction printed or otherwise inserted dieicon shall not bc(^cmed an offer of settlement or accord and satisfaction unless accompanied by such a Notice of Settlement OtTer. Lessee shall pay all costs of litigation, including reasonable attorney's fees, ex|)ort witness and consultation fees .daMS 5 03 40 125 incurred by Lessor in connection with any lawsuit in which Ixssor is successful in recovering nny royalties or interest or in terminating (his Lease due to Lessee's failure to pay royalties within tho period :)Ct forth heruin. (2) The execution and delivery of a division order shall rwver be a requirement or condition precedent to distributing Bctual royalties to Lessor. If requested by L«.ssce, lessor shall cxccutc a written sratcmcr^t of Lessor's interest in mtnemls or royalties and lycssor's currcnt address and social security or taxpayer's I.D. number. Nothing more shall be required of Lessor in order to obtain lessor's royalty on actual production. (3) . For the purposes ofcolcuiutbigroyulties payable to Lessor on gas produced and saved from the Leased Premises, the volumes of such gas shall be measured and metered ts produced at cach well, and the heating value or Btu content of such gas shall be determined and calculated as produced at each well, l^cs^iec .shall not be requited to determine and catculalc the Btu content of gas produced from each well more than twiue each year. All measurements, metering, determinations, and calculations shall, at Lessee's expense, be effected and perfuniied accurately und ill accurdance with standards and procedures gcncrolly acccpted and applied in the industry, and in compliance with luiy applicable laws and regulations, by qualified parties. ('I) If at any time during a calendar year Lessor's royalty is required to bo calculated pursuant to Subparagrapli B(4)Cb) hereof^ Lessee sKall so advise Lessor in writing within thirty (30) (liiys following the muiith in which such provision became applicable. (5) Oiicc cach calendarycar, and within sixty (60) days following Lessors written request therefor, Lessee shall provide Lessors acct^unting information with rcspect to production for ihe prior calendar year. The accounting information shall include, with respcct to gas and liquid liydrucarbons produced and sold hereunder, monthly wellhead metered volumes, monthly average B'VU contcnt, gas analysis roporis, sales price, gross sales proceeds (including the amount of nsimburscmcnt for taxes and/or costa or expenses), names of purchasers, the amount of royalties paid Lessor during the preceding calendar yeiu-, and if Subparagraph B(4)(b) was applicable during such period, the applicable index pricc for all gus. With respect to oil and/or condensate produced and sold licreunder, the accounting information shall Includc monthly volumes, sales price, jwmes of purchascfH, and the royalties paid Lessor during tJte preceding calendar year. In Uie event Lessee drills and complotca a well or wells on the Leased Premises for each well drilled and completed on the Leaned Premises the Lessee sfiall furnish to the Lessor the true and correct Operator Name und Number, Field Name and Number and Lease Name and Number. All such information n»ust corre.spond to the information l\imlshcd the Railroad Commission of the State ofTcxas and shall furnish Lessor with the nanjc» number or oilier identity ing information that the production from such well is reptirtcd to ttic Comptroller of J'uhlic Accounts of the State of Texas, and such information must be furnished Lessor within sixty (60) days after such well has Ijccn put on line. In the event any such information should change, lessee shall furnish Lessor norico of such changc togclhcr wijh the updated infarinaliorj corresponding to such changc. Lessee shall be under a continuing obligation to furnish such information to Lessor upon the request of Lessor but not more than once each calendar year unless there has been h change In such inlbrmation during such calendar year, (6) Lessor's royalty interestshall, in all cases, b«:af its proportronalc pari of all produetlon, .M;vcrHnec, windfall protlts and ad valorem mxcs attributable thereto. Jim 6 aa 40 1 2 6 . (7) Except AS specifically provided in Subparagraphs B(2) and B(4) Rbove, &\\ royalties payable under Subparagraphs B()), and n(2), und C(1) of this Section 3 shall be without deduction for »iiy costs of producing, marketing, gathering, (ranKporting, separating, dchydroting, comprx^ssing, proocs^iing. muniiiuoturing, (reuting, marketings or other costs involved in making the oil or gas ready for sale or use, nor any part of the costs of the consilnicting, operallng or depreciating of any plant or other facilities or equipment for proc^issing or treating said oil or gas produced from said lands. (8) Lessee shail be under ti)c du^ to exercise good faith in the disposition, sale and accounting to Lessor for Lessor's royalty, and I.essee shall keep in mind Lessor's interest as well eis its own interest in any and ail contracts relating to Urn sale and/or transmission for tha sale of oil and gas and any of its products or constituents, produced under the terms of tiiis Lease. (9) Notwithstanding any other term or provision of this Lease to the contrary, Lessee hereby agrees to and does hereby toll any limitation period provided for under the Laws of the State of'I'cxas for any unpaid royultics due Lessor under the terms and provisions of this Lease and l^essec specillcally agrees that the limitations period for any unpaid royalties due Lessor under the terms and provisions of this Lease shall not begin to run unless and until Lessor discovers such non payment or improper payment and acquires actual knowledge of such non payment or improper payment ajid Lessor and Lessee agree that the "discovery rule" shall bo applicable to this Lease to the !>a;nc extent us if it had been adopted by the Supreme Court of the State of Texas. (10) Limitations. Jt is expressly under^itooU and agreed that in the event of the usertion of any claim by Lessor that this [.case has terminated, In whole or in part, by reason of a cessation of production and/or operations, Lessee waives and vshall not be entitled to assert and shall itot as.<>crr any defense based upon any statute of limitations or other law based upon the passage of n'me prior to Lessor's fjiing of suit iipon tlie claim ("Defense"), to the extent the Defense miglit otherwise bo based upon any period of time prior to the date of acluut delivery to cach l.«ssor against. whom n Defense might be asserted, of a written notice, witich is not included with, in or as part of any utiier coinrnuiUcation with respect to lease lermination, stating vt^rbutim tlmt Lessee has commenced and is continuing adverse possession of all or part of the Leased Premises under a claim of right that is Inconsistent with and Is hostile to the Lessor; Gucli notice given hereunder, in order (o commence a itmiuitiorks period, must make spcciHc reference to this Lease, including the names of the parlies, the dale, and the Leased Prcm[£cs, must .state that it L'l given pursuant to this Subparagraph 10 of the l^se, and must be accompanied by a true and correct copy af this Subparagraph of the Lease. [t is understood and ajptjcd that, for purposes of a Defense, no claim or cause of action described in this paragraph shall be claimed, or may be found, to have accrucd prior to the ditto of actiiHt lielivery of notice iis provi(ied herein. (11) Measuring,. BTIJ Analysis and Oa.s Allocation A. In making ail gas accounting calcuiiitions affecting I.essor's gas ruyally, it is recognizcd and agreed that: (!) the pressure base used in mcu.suring gas produced under die terms of (Ms Lease shall be 14.65 pounds per bLjusre incli; (2) the standard pRsssure base temperature shall be sixty (60) degrees Fahrenheit, correction to be made Ibr pressure according to jdTt 7 Cf3 40 1 , 127 Boyle's Law, and for specific gravity, according to tests made by the Balance Method, or by a generally approved method ofmeusuringand testing in use by the industry at that time. Individual well meters used for wetineasurcmcnt for aDocation purposes shall be constmcd, tcstctt and maintained using standard methods in genera) use by the gas industry. B. AH gas produced from the Leased Premises shall be measured by individual Weil meters ul the wellhead prior to conducting uny post-production opcntliuns, meluding opcmtions furseparutiun. deliydration, or^^tment, unless Lessee elccts that all or a portion of the gas and condensate produced from the Lease flow to ccntraliy iocatcd separation, dehydration or treatment facilities ("Central Facility or Centra! Facilities"), in v/hich ease, Lessor conscnta to such procedure, subject to the terms hereof. Allocation methodologies used by Lessee shall be in compliunuc witli reeummcnded indusrry practices and any changes to the allocation methodology dcscribcd below shall be communicated (including the reason for (he change) in advance by Lessee to Lessor in writing. C. Lessee, at its sole cost, ain^es to install check meters ("CM") at the sales meters of all Lease Centra} Facilities. All gais at the meters lhat measure the tolal flow of ga^ from Central Facilities simll be measured and accounted for before the some loaves a Ccntml Custody Transfer Meter ("CCIIVI"} In occordancc with ANSI/API 2530-AGA Report No. 3(1990) and any supplements (l^ereto as adopted by Lessee, D. For gas accounting purposes, gas samples shul] be calculaled by a non-afflliatcd scrviec company according to the technical standards recommended at the time by the Oas Processuis Association (GPA) on an "as-dolivered" B1*U basis. E. Unless Lessor ond l.^s3ec agree otherwise in writing, I^.wec shall lake or cause to be taken, at least quarterly, wellhead gas samples fmm all producing welb iocatcd on the I/casc. Gas samples shall be taken In accordancc with GHA Standard 2166, or any then current revision thereof and q non-afTtliated service company shall analyze all such samples quarterly. Lessee shall timely respond to written requests sent no more than once a year by Lessor inquiring as (o what conipanies are then analyzing such samples. If a wel.'hcad sample is not taken for any reasons, the gross beating value C'BTU content") from the previous sample at such particular wellhead shall be used as a substitute. Upon Lessor's request in writing, Lessee shDll give Lessor's designated representative reasonable notice oftlie taking of a)i wellhead gas samples to be taken alter receipt by Lessee of such request (the purpose of which is to measure the gas quality of any well being so sampled), in order that the Lessor niay have an opportunity to have a representative present when the sample is taken. Lessee shall on written request of Lessor's representative pronjptly furnish Lessor wkli coplcs of all such sample analyses. Lessor, at l.essor's expense, may cicct to install Lessor's own meter at or near any wellhead meter, or ut uny CC'I'M on the Lca.<;c, w conduct, at Lessors expense, its own independent sampling and analysis of gas from Lessees and/or Lessors meters on the Lease and Lessee agrees to cooperate with Lessor if the Lessor so elecls. Any such installation shall be pcrforrned by Lessee. Lessor shall give Lessees designated representative notice of the taking of Lessor'ji independent gas samples In order that Lessee may have an upportuniQ' to have a representative present when any sa/nple might betaken by a representative of the Leswr, Lessor shall, on written request from I,essoc, promptly fiimish lessee with copies of all of I.cssoi's sample analyses if any are tnkcn on behalf of the Lesscif. K. Lessee shall also fake gas samples, throiigli continuous sampling, at any CCTM in accordance with principals established by the GPA and such continuous samplings tihall „cfye 8 aa 40 ) %'m ^ 1 2 8 be analyzed monthly by a non-affiliatcd servicc company. Should Lessee fftii to take the continuous sumpiing and conduct tho Independent analysis of such continuous sampling at each CCTM for any reason, then the D'lU content tnken nt (hoiipp)icab{eCCn>1 for the provious month's sample shuU be substituted by l^ssicc In calcuiuting lh<; ruyulties due tho I^sor for any such production. G. Gas Samples taken from a CCTM In the manner called for herein shall ba used by ihc Lessee in calculating royalty payments, and for royalty occounting purposes gas measured at Ihe applicable CCTM shall be allucuted back to each well in accordance with this provision. It is further agreed that; (1) Where there is no production flowing to an applicable Central Pacilily during an entire calendar month from any new wells» or from any existing wcll(s) that have been reworked or re-complctcd and» the B fU content of tha fir^t gas sample taken at thf applicable CCl'M, after any such well or wctis have commenced to producc or huve been restored to production varies by more tlian two (2%) percent from the DTU content of the gas samples taken at the applicable CCTM during the provious month, either party may request ihe weighted average 13TXJ content (after adjusting for any free condensate that condenses In the pipeline from the well to the CCTM) of the total wcUhead gos samples (taken from all producing wells locatcd on the Lease) be used to reconcile royalty payments for that month; or (2) If either parly can demonstrate that the weighted average D'lU contcnt (after accounting for free condensate timt condenses in the pipeline from the well to the CCTM) of the total wellhead gas samples (taken from all producing wells iocatcd on tho Lease thnt are flowing to the applicable CCTM) varies by more than two (2%) perccnt from the BTU content of the gus samples taken at the applicable CCl'M, during any give month, then the weighted average BTl/ content of the total wellhead gns samples shall be used to reconcile royalty payments for that month, 'Ihe weighted average BTU content referred to above is dellned as the sum of the total wellhead MMDTlJ's divided by the sum of tlie total wellhead MMCF's, for any given month for wells flowing to the applicable Central l-aoilily. If a requested reconciliation is not disputed by cither party, paynicnts or adjustments attributable to the reconciJiaUon shall be made within 120 days from the date the reconciliation request is received by the other party, otherwise the gas samples taken from an applicable CCTM ^iliull be used for calculating royally payments. H. If more than onegasiample is taken during a given month al Ihe wellhead or «t the CCMT", then (ho gas sample containing the highest DTU contcnt shall be used if tlie sample containing the higfiesi BTU content is more than Two (2%) percent higher than any other samples taken at Ihe wellhead shall be used for albcation and tlie initial sample taken at the CCTM shun be used for calculating royalty pnyments. 1- Lessee shall endeavor to use the same scrvicc compuny(s) lo undertake all gas sample analyses required on the Lease and to notity l-essor In writingofany planned changed In Its selected scrvicc company at least thirty (30) days prior to nny such changc, cfa^e 9 G^3 40 129 J. Condensate Allocation (1) For centralized facilities, Texas Railroad Commission ("TRC") well tests will be taken in r>ccori!ance with and when required by the TKC. 'I'hc data taken from these tests will be u^ed to allocate condensate to individual wells; (2) If a wcl I flows less than 100 MCFD and has not produced condensate during the lust three weK tests, aiid if flowing conditions do nol change for ttuil we)), Lesspr exempts I .essec from further well tests and condensates will not be allocated to the well. (3) Lessee will conduct a test fur the proper duration needed in order to obtain ai) accuratc test. (4) For any well that isrc-woAcd orrc-completed, Lessee will endeavor to perform a well test within 30 days otter re-establishing production. (5) If the a^sults from a well lest indicate a well begins or ccoses to producc condensate. Lessee will evaluate the accuracy of the test and decide if additional well testing will be undertaken to determine the allocation of condensate. (<)) The results from the well test will be applicable until the next well lest is performed. K . G a s M e t e r Te s t s Lessee will perform meter tests (i.e. calibration tests and oriltcc piste inspections) at chcH wdlhc^, and al the CCTM, at least quarterly in accorxiance with generally accepted industry standards. CCTM meter tests shall be wnducted according to (he recommendations found in Chapter 21 of the AGA/API Manual, or any current revisions thereof. Upon Lessor's request in writing. Lessee iihall give Lessor's designated representative reasonable ndvance notice of nil gus mctisr tests to be taken after receipt by Lessee of such request in order the Lessor may have an opportuniiy to have a representative present at all meter tests, 1.. Fuel Gas Recovered by Vapor Recovery Unit Only those vapurs or emissions recovered tlirough the applicable Central Facility Vapor Recovcty Unit will be allocated for purpostss of royally paynwnts. M. Central Facility lihe parties hereto agree to the rullowiiig ullocation methodologies, subject 10 the provisions hereof for periodic audit und verification, viz: (1) . Data Requirements for Allocation Dutu gulher^ frum the Ibllowing will be used for aUucation calculations: (a) Central Facilities to <73 40 1 3 0 • The as-delivcred (corrected for water vapor) B'JU factor taken at iheCCTM. • • The inuntlily gas volume (as corrected for missing or corn^tcd meter data) ' tncASiircd at the applicable CCTM. • The a.S'dclivcrcd B'lTJ factor of ihe gas rccovcred by the applicable CentrHl Facility Vapor Rccovcry Unic (VRU). • 'Ilie monthly volume (us corrected fur missing or corrcctcd meter duta) measured ut the tippliciiblc Central Fucility VRU mcicr. • ll)c tote] monthly condensate measured at the applicable Cenlra) Facility. (b) Wellhead (For each well) • Ihc Oil/Qus Ratio (OGR) taken from the latest well test for cach well flowing to the applicable Central Faci^i^. • 'I"hc monthly gas volume (as corrected for missing or corrected meler dulu) measured at the wellhead meter. • The as-delivered B'I'U lactor for cach wellhead. (2) A liocation Calculations (a) U'lU Factors and Water Vapor Corrections • Ilie dry BIU factors thai are to be measured at each meter will be currecied for water vapor by the non-aftllialud service company undertaking the analysis ("As Delivered") and the resulting corrcctcd As Delivered BTU factor shall be carried funvard in the calculation. This is the application of a volumetric correction for water vapor content to the Dry BTU factor, (b) Central Facility Total Gas Volume • Tlic total sas measured at the applicable Central Facility is the sum of the corrcctcd monthly produced (tas measured at the oppHcabic CCTM and the corrcctcd munihly gas measured at the applicable Central Facility VRU > n « t e r. (c) Central Facility Gas MMB'fU • Ilie gas MMB'IU measured ac the applicable Central Facility will be calculalcd using the corrcctcd montlily pmduccd gos volume mcttsured at the applicable CCFM and tlie As-Delivorud B lU factor mensurcd by continuous sampler ut the applicable Central Facility. (d) Central Facility VKIJ Gas MMUTU jds-c IJ ff3 40 131 « The VKU gas MMBTU produced at H>e applicable Central FaclHty will be calcu]atcd using the oom»c(ed monllily gp5 volumu measured at the applicable Central Facility VKU meter wid the As-Oefivero^l B'VIJ faotoi measured at the applicable Ccncral Facility VKU meter. (e) Central facility Total MMDTU • The total MMBTU measured at the applicable Central Facility is tlie sum of the gas MMB'IU meusufed at the applicable CCTM and the VRU gas MM13'1XI measured at the applicable Central Facility VRU meter. (f) Condensate Allocation • Monthly, the theoretical condensnte produced by each well will be calculatcd by using the corrccted wellhend volumes and iheapplicuble OGK. Summing the theoretical condensaic produced by each well will derive the tola! theoretical condensate produced by all wells. The percentage of the tclsi theoretical cundensato provided by each well is then calculated ajid this percentage is then applied to the total monthly condensate sold from the applicable Central Facility to calculatc the conderuiau: allocated to each well for royalty calculation purposes. (g) Wellstfcam Measurement • A correction for measurement of the full well-stream through an orifice meter will be made in accordance with a meter factor bused on tests in accordance with herewith. Changes to this method are pemiitted and Usweo will bodi communicate and document any changes in advonce to Ixasor'fs designated rvpresemativo. (h) Gas Allocutinn • The corrected measure wellhead volume will be reduced by the meter factor as set out herein. 'I*he sum of the corrected wellhead volumes will then he calculated. The pcrcenrage of the new corrccted wellhead volume totals provided by each well is then CQleulated and Ihia percentage then applied to the applicable Cenlnil l^acility total correctcd gas volurrw to caleulatc Ihe gas production allocated to each well for the given month. (i) MMBTU Allocation • A wellhead MMB'iXI will be calculBtcd for cach well from the meter factor corroctcd wellhead volume and Ihc As-Delivered wellhead BTU factor. The sum of the wellhead MMBTU's will then be eujeulaled. The percentage of tiie wellhead MMBTU total provided by cach wcJl is then calculated and this percentage then applied to the caleulatcd applicable CentraJ Facility total MMBTU to ullocale the MMHTU tr> cach well for the give month. 12 (23 40 132 (j) Check Stub BTU Pacior • Due to the rtllocation proccss, the As-De]ivercd wellhead BllJ factor may not be tliu same as the allocated wetlhead BUJ factor llmt appears on the monthly royalty payment chcck stub. « The Rllocatcd BTU foctor that appears on the chock stub is catculatud by dividing the ftllocoted wellhead MMBTU by the allocated wellhead volume (MCF), « The U'lV factor that will be reported on the chcck stub U un ailocatcd BTIJ factor. 4. Shut-in Rovultics: MIntmum Ri>v»lt>e8. A. If at any time or from time to lime there shall be any well or wells on any pan or parts of this Lease then in force and effccl capable of producing gas or gas and/or conderisute in paying quantities but from which gas or.gas and/or condensate arc not sold or used for lack of an adequate market, Lessee may pay or tender to Lessor as shut-in gas well royalty a suin equal to Tif^ and No/100 Dollars ($50.00) per year for each acre of the Leased Premises included In the g^ unit on which each such well shall be situated or^ if no gas unit designation shull have been made, then on the nuinhur of acres which Lessee would he entitled to retain around such gas well under the provisions of Scctiun R hereof, in the event ofpartialtermination/nie first such yearly payment or tender shall be made to Lessor witliin ninety (90) daysjiftcr the well was shut-in andjucceeding payments shall be made annual ly.thercafter on ofbefore the day of the month upon which such well was shut-in (which shut-in date shall be (he beginning date of each annual period for which payment is made). H^e payjiient or tender of shut-in gus well royally may be made by the check or draft of Lessee delivered to lAjyeor on or before such date of payment, While such shut-in gas well royalty is paid or tendered as above provided, this Lease, insofar as il covers such gus well and the acrcage for which such payment is made, shall, subject to the other tcnns and provisioits hereof, remain In forcc and effect as though sucli well were producing gas or gas and/or condensate in paying quantities, provided that the payment of !m uny gas well on the Leased I'reinises (ii) umlcr the obligation to reasonably develop and explore any such designated tract upon which any producing or .iynutiun, whcihcrmade by Lessor or Lessee, shall be eftcctive from the date of termination as above provided. G, Although this Lease may have terminated in part and been partially released under the provisions of this Section 8 it is agreed (hat Lessee shall have and retain such easements over and across such tenninaled portion or portions of the lund originally covcred by this l^ase as shall be reasonably necessary for ingress and egress and to enable Lessee to develop and operate tlic portion or portions of this Lease conlinuing in efTect for the pniduction of oil and gas therefrom, and Lessee shall not be required to move or relocate any pipelines, tanks, separators or other surface cquipmcnl or machinciy used in connection with such production of oil and gas. IL Lessee agrees, upon Lessor's request, lo give Lessor reosonable noticc of the intention to lake any gos/oil ratio tests of any well on the leased Premises and, upon I.essors rfeque.st, Lessee agrees to furnish Lessor with copies of reports of all gas/oil ratio tests. If made, on any well or wells on (he (-eased Premises, which information shall be held In strict confidence by Lessor and not divulged to any third party or used in any way other thun in connection with matters relating to this Lease. L Notwithstanding (he termination of this Lease as to the portions of the ucruuge covcred hereby and as to depth under the other provisions hereof, this Lease shali neveilhcless remain in force and elTect as to each oil unit as so designated, so long as oil or gas Is produced from such oil unit in paying quantities and so long as additional drilling or reworking operations are conductcd on .such oil unit as herein provided, In case of cessation of actual production of oil and gas in paying quantities from any oil unit as so designated, this Lease, insofar as il covers and affects such pruiicular oil unit which has ccased producing in paying quantities, shall tciminate (notwithstanding the fact that there may be production in paying quantities fium other oil unit or units) unless Lessee conwenccs drilling or reworking o|o«ra(ions on such particulnr unii within ninety (90) days thereafter and shali pursue stjcii drilling or rcwrrking operations on the same or succcssive wells at intervals of not to cxcccd ninety (90) days between the dale of completion uf upvrailuns on nnu well nrid the date of commencement of operations on unotlier; and if production of oil or gai in paying qtianticies is restored on such oil unit, this Lcdsc shall remain in fbrcc and ciTect as to such oil unit, so long jis-B 20 (TJ 40 134 ; thereafter as oil or gas b protinycd therefrom in paying quantities or additional drilling or reworking I operations arc had thereon as above provided. Hut, it is further provided that production oroper&Uon^ ' on one such oil unit as so designated shall huvc no ctycct upon Uic continuation of this Lease as to any other oil unit or units and that production of oil shall have no offect upon (he continuation of this lA^asc as to any gas unit. It Isfurtlior provided that, If there ^^ali be production of oil froin perforations morcthnn 10,000 feet below the surfaco of the land under o deep oil unit and if such production of oil below J O.DOO feet shall cease and Lessee's rights as to such deep oil unit arc not maintained, ua above provided, and If there Is production of oil in paying quantities or If, (is a result of such additional drilling or reworking upcration:<, production of oil in paying quantities is obtained from a shallower depth less than 10,000 feet on such oil unit. Lessee shall proceed to designate shallow oil unit or units allocable to such oil production, in the saittc manner as provided in the foregoing provisions hcivoffor development and insofar as iiumc covers such deep oil unit so ceasing lo produce, shall (hereupon temiinate and be released as to al) the remainder of the acreage in such deep oil unit and this I/ease shall likewise terminate In depth as to all depths and horl2X)ns under each such shallow oil unit more thai^ 100 feet below tJic stratigraphic equivalent ofthe deepest depth from which oil is being produced from such shallow oil unit If there is a cessation of production of oil in paying quantities Irom any oil unit and as a result of such additional drilling or reworking operations such production of oil in paying quantities is not restored, but pruducliuo of gtu> in puying quantities is obtained, or if any oil well is recfassificd as a gas we/J under (iie Rules and Regulations of the Railroad Commissfon of Texas, or If any oil well ccascs to produce oil In paying quantities, but commences or continues to producc gas in paying quantities, then upon the cessation of such drilling or reworking operations, such fsclassitiefttion, or such other event, Lessee shall proceed to designate a gas unit allocable lo such gas productiim covering auteftge in such oil unit aiul/or from any otiieracrcagc then covered by this Lease which is not already included in a gas unit with ges production from thw same hori'/on or horizons. Including acrcage in any other existing oil units designated hereunder, In the same maimer provided in the foregoing provisions hereof for development and designation after the expiration of the primary icrm, and this Lease shall continue in force and effect os to each such gas unit so long as gas is produced therefrom in paying ijuantllics (or gas is capable of being produced therefrom in paying quantities, with all shut-in gas well royalty paid thereon) or addllionaldrilling or reworking operations arc cottdpcted thereon as hereinabove provided; and this Lease insofar as sanie covers sucli oil unit so ceasing to produce in paying quantities shall thereupon terminate and be released as to all the remainder of the ocreagc. If ariy, in such oil unit which is not included in such gas unit; and this Lease shall likewise terminate in depth as to all depths and horizons under such gas unit more than 100 feel below the stratigraphic,cquivalctil ol'the deepest depth from which oil or gas Is being produced from such gas unit, J, Notwithjstunding the tenninntlcn of this Lease us to a portion or portions of the acreage covercd hereby and as to depth under the other provisions iiereaf, this Lwisc shall nevertheless remain in force and effect as to each gas unit as so designated so long as gas is pn>riuced from such gas unit in paying quantities (or capable of being produced therefrom in paying quantities, with all shut-in gas well royally having been fwid Ihereon}; and rf the actual production of gas in paying quantirics from any gas unit shall ccase, this Lease, inst)far as it covers and affects such particular gas unit which has ccased producing in paying quantities, shall tcrminalu(notwilhi>it surrounding same and this Ltuise shall promptly terminate and be released as to all the remainder of the ncrcage (except any oil units) in such intermediate gas tjnit; and iliis Uasc shall likewise terminate in depth as to all depth.*; and horizons under such gas unit mon; than 100 feet below the stratigraphie equivalent ofthe deepest depth fronj which gas is being produced (or gas is capable of being produced in paying quuntitles, with all shui-in gas welt royalty having been paid thereon), from any well completed on such shallow gas unit. If there is a cessation of prixiueiion of gas in paying quantities from any gas unit and as a result of such additional drilling or reworking njxTaljons .such production of gas in paying quantities is nut restored, but production of oil in paying quantities is obtained, or if any gas well is reclassified fts an oil well under the Rules and Regulations of the Railroad Commission of fcxas, or if any gas well ccascs to produce gas In paying quantities, but cominenccs or continues to produce oil in paying quantities, then upon the ecssation ofsuth drilling or ruworking operations, sueh reclussification, or sueh other cvcni. Lessee shall proceed to designate oil unit or units allocable to such oil production covering acreage in .said gus unit und/or from any other acreage then covered by this Lease which is not already i)iclutlud in an oil unit with oil production from the same horizon or horizons, In the same iDiuincr provided in (he forcgoirig provisions hereof for development and designnlion after the ^cfa'e 22 03 h n 136 expiration oftheprtmaiy term, and Lessee 5hnll be entitled to develop and mdintuin this Lease in forcc as to any portioti of such former gtis unit (together with any other acreage then covered by [his Lease) riot Included in said newly designated oil unit or units by commcncing drilling or reworking operationti on such remaining acreage in the same manner and in the same Intervalst as provided in Subparagruph S.D. hereof for dcvcJopment and designation of oil units after the expiration of the primary term, provided the first such driiling or reworking operadon commences on or before the expiration of ninety (90) days following Les&ee's designation of said new oil unit or units; and upon conclusion of any sucfi development by Leiisee lhii> Lea^se insofar as same ccvm suuh gas unit su ceasing to producc in paying quantities shall thercup>on terminate and be released to all the remainder of the acreage, cxccptasto such o!) unit or units; and this Lease shalJ likewise terminate in depth as to al) depths and horizons under cach such oil unit more tlian 100 fcctbcbw the stratlgraphic equivalent of the deepest depth from which oil or gas is being produced frt)m such oil unit; and this ixase shall contmue in force and effect as to cach such oil unit so lung as oil or gas is produced tlMsrofrom in paying quantities or additional drIUing or reworking operations are conduc^ted thereon as hereinabove provided. K. It is expressly provided that upon the termination of this Lease as to all acreage covered hereby, SAVE and KXCEPT as to shallow «rd/or deep oil unit or unit;^, and shallow, intermediate and/or deep gas unit or units or horizonial units (whether at the expiration of the primary term or cessation of drilling and development, or subsequent thereto) as above provided, this Lease shall kIik; terminate as tu sJ} doptirs and hori^fsons greater than 100 feet below the (tratlgraphic equivalent of the deepest depth from which production in paying quantities is then being had (or at which a well capable of producing gas in paying quantities is completed) on each such unit. Lessee shall, ut such time, release this Ixiasc as to all depths us to which tiils Uiue shall terminate, as henjin pmvtdcd, and shall file such release of rccorJ and furnish a copy of same to Lessor. L. The parties hereto expressly agree that if there should be or appear to be ajjy conflict or inconsistency between any of the tenns and/or provisions of this Section 8 and any of the terms and/or provisions of any other Section or part of this Lease, the terms and provisions of this Section B shall prevail and control 9. Heasonahlc Development and Exnloratlon. The drilling of wcils In accordance with the spacing provisions of Section 8 shall not be construed as an agreement or construction on the part of Lessor thnt such drill ijig would constitute rcflsonabie dcvelopmynf or exploration of the Leased Premises; but Leaacc agrees to drill all such udditionai well or wells on the Leased Premises, orsuch portion or portions thereof as may be In forcc and effect from time to lime, as may be necessary to reasonably develop and explore the same for the production of oil and gas. 10. Offjctifng Hroduc^lpn. For the purposes of this Section 10, a producing well located off the Leased Premises, but within 500 tl-ct of the Leased Premises shall be defined to b« a well draining the Leased Premises. In l>iu event a wcl) in which l^ossee owns nn lntcrc.<{t (whether working intercsi, overriding royalty interest and/or a royalty interest) producing oil and/or gas in paying quantities shall be brought in on ndjohiiiig land (wheUier such adjoining land be owned by Lessor or any third person) and ilruining \iw Luused Premises (and if there f.«} no utrsctling well on the Leased Premises), l/cssee shall, 23 era 40 137 wUhin one hundred hventy (120) days after Ihc commencement of production from such draining well, or in the event a well if> which Lessee owns no interest (wrhcther working interest, overriding royalty interest end/or royalty interest) producing oil and/or gas in paying quantKics shall be brought in on adjoining land (whether such adjoining iiind be owned by Lessor or any third person) and draining the leased Premises (and if there is no ofTsetting well on the Leased Premises), Lessee shall, within one hundred twenty (120) dayj» after the commencement of production from such draining weJI, Lessee shall do one of the following; A. Commence and drill on offset well on the Leased Premises (oflsetting said well on adjoining or adjaccnt lund)ar)d shall dnH said well on the Leased Premises to a depth sufTlcient to test the sand or hori/con from which the well on the adjoinintjland is producing and in u bona fide attempt to complete said well as a producer in paying quantities iti the sand or horizon from which the wcilon adjoining land is producing; provided, if such wcti Is lost or abandoned during the drilling thereof by roflson of mechanical difficulties or by reason of er^countering a cavity or Impenetrable substance which renders furUier drilling impracticable, then Lessee shall have the right to commence another well within one hundred twenty days (120) days after tlie abandonment thereof and such substitute well sha{} be considered for all purposes its (he abandoned well; or 1). Release from this Lease all rights from the srratigraphic equivalent of the top of the producing interesc down to the stratigraphic equivalent of the base, of the offsetting producing geological fonnatlon In and to and not less than the applicable acreage specified In Section 8.A.(I) i>liSS and EXCEPT uny geological zones which are then producing oil and/or gaii or arc capable of producing oil and/or gas based upon clcctric log analysis, sidcwall core analysis and/or o|)en hole formation test data in wells drilled on the Leased Premises, by l.essee, or its successors and assigns; or C. I^^y Lessor compensatory royalty purstiant to the provisions of Section 3 above, which compensatory royalty shall bo based upon ucluiil production from the draining well; provided, however, no compenaatory royalty shall be due or payable dtiring any period of time when the draining well is shut-in atui no production of ot) and/or gas is being obtained from the draining well. It is understood lhat Lessee shall be obligated to protect the'Luased Premises from drainage by welbj drilled on other lands of Lessor not included In this Lease to (he same extent as though such draining wells were drilled on lands belonging to third parties. If at the time the obligation to dn'l 1 an oOset well accrues, Lcs.scc shall be engaged in tlio drilling of another well on Ihc Leased Premises, Lessee shall have a period of thirty (30) days after the date of completion or abandonment of such other well then being dfillcd by Lessee or one hundred twenty (120) days after the conimenceriient of pjuductlon of such ofTset well, whichever shnll bo the longer period, within which to commencts the. aclua) drilling of such offsst well on the Leased Premises. n. Rcnioyal of Properly and Fixtures. Lessee shall have the right, at any tijne during or within one hundred eighty (I SO) days after the expiration or termination of this Lease bulnot thereafter, to remove ait properly and fixtures placed by I A^ssee on Siiid land or the te»rniinstted purliun of this Iasusb, weulher permitting. All pruperly and fixturrw not So removed within .such time iihall become the property of Lessor It is further provided that Lessee shall not have >l>c right to remove the casing from any water well or dry hole or abandoned well in violation of the provision.^; of Subparagraphs A and B of Section 16 hereof- Nothing herein contained shall relieve l.cs.<:ec fmin its obligation to plug all wells drilled or utilized by Lessee' In its 24 tsa 40 Tnovi 1 3 8 operations hereunder. 12. Aasigutncnts; Rcleftaea^ The rjghTs of either parry hereunder may be assigned, in whofe or in part, and (he provisions hereof shall extend to the heirs, successors and assigns of the parties hereto; but no chonge or division in the ownership of the land or royalties, however accomplished, shall operate iu enlarge the obligations or diminish the rights of Lessee, No sale or as^ignaient by Lessor shalJ be binding upon Lcsscu unlit thirty (30) days aAcr Lessee shaJI be fltmished with a copy of the recorded instrument evideiiufng sonie. In The event of the assignment of this Lease as to a segregated portion of said lund, the shut-in gas well royalty and minhnum royalty payable hereundershiil] be apportionable among tlic several leasehold owners ratably according to the surface area of each, and default in payment by one shall not aflcct the rights of other leasehold owners hereunder. Subject to the apportionment of shut-in gas wcli royalty and minimusn royalty as provided above, in ease Lessee ^igns (hia Lease in whok or In part, f^essee shai( be relieved of a(f other obligafiortit with respect to the assigned portion or portions arising subsequent to the date of the assignment. lessee stmll himish Lessor acopy of uny ussignment of this Lease in whole or in part, l^^ssce may st any time execute and deliver to Lessor, and place uf record, a release or releases covering any portion or portions of the above described premises and thereby surender this Lease as to such portion or portions and be relieved of all subsequently accruing obligations an to the acreage surrendered (but no! A5 to obligations which have theretofore accrued). 13. Houses and Other Structures. Notvvithstanding the rights granted In Section \ hereof to lay pipelines, build tanks, power stations and telephone lines on the nbove lands, it is expressly understood, stipulated and agreed that this [..ease docs not confer upon Lessee any right or privilege to construct or maintain any lease houses^ camps, warehouses, or other like structures on the Leased Premises; and Lessee shall never construct any such buildings or improvements on the Leased Premises and shall never use the Leased Promises for any such purpoKcs; Lessee shall, however, have the right to house einployee.s or consuHantsofthe Lessee, or of any operator, drlllhig contractor or other contractor of Lessee, in trailer houses and other movable housing located on the Leased Premises while such personnel arc engaged ill drilling or reworking operations on the Leased Premises, and the Lessee or any contractor of Lessee may store material and equipment used orexpeoted to lie used in drilling or reworking operations on the Leased Premises iu movable buildings on the Ivcascd Premises. 14. Operatlotis. A. Lessee agrees that, prior to the eommencement of any operations on the Leased Premises, Lessee shall give Lessor notice of the commencement of such operations, Ihe approximate date of such commencement and the location of the same; such notice to be given within a reasonable time prior to the commencement of such operations, and to be mailed to Lessor «( the address specified at the beginning of this Lease, B. l^i»-scc agrees to pay the surface owner the sum of $3.000.00 per aerc for each acre of the l,eu.scd Premises utili7jcd for drill site, roads, pipelines and location of lank batteries and other Kurlacc equipment up to (he first diose (3) acruji utilized and the sum of Two Thousand and No/J DO Dollars ($2,000.00) per acre for each acre utiii/cd after thiee (3) acres and Fifty and No/100 Dollars ($50.00) per rod for pipelines, which payment shall cover the usual and ordinary damages occurring to 25 a» 40 r\^{J 139 the Leased Premises fix>m Lessee's use ihervof In drilting and producing operations conducted in a reasonable and prudent manner, and which payment shall be made to the surfai^c owner prior (o the commencement of drilling undyor producing opemlions. Shouid my such well be productive of oil and/ur gas. Lessee tunber agrees to pay to the surfoce owner tho additional sum of $ 1,500.00 per year In »dvunce, which payment shall cover thu usual and ordinary damages ucuurringtothut portion oflhu Leased Premises utilized for Ihc well location, location of tank batteries and other surface uquiptnem, pipelines, clectric and telephone lines, and the acccss ruad to such well, in producing opcrntions conducted in a reasonable and prudent manner, the Hrst of which annual payments shall be made to the surface owner wtthin thirty (30) days following the first anniversary date of commencement of actual pioduction, and annually thereai^cr during the productive life of such well. 'Ilie above payments shall not be deemed compensation for damage reaulting to the Leased Premises from blowout, spillage of oil, suit water or chcmicals,ordamagcs resulting from an unreasonable, extraordinary or negligent use of the Leased Premises by Lessee, and Lessee agrees to pay the surface owner rcasonoble compensation for any such damage. C. The ajTiouiit per acre compensation and the amount uf the annual payment slated in Subpnragraph B hereof shall remain in force and effect for a period of three (3) ycors from the dale hereof. ThereaAcr, said amount shall be adjusted upward by the unioiml, if any, of the pcrcenuigo incrvase In the Consumer Price Index published by the liureau of Labor Statisticji ufthe United StatejJ J^epflrtmcnt of Labor for the month and year such payment is due, over the Consumer Price Index so published for (he month of December 2008. In making such determination of the adjustment it shall be the obligation of Lessor tu fumi.sh such information to Lessee. In no event shall such payments be reduced. Should publication of iho Consumer Price Index be discontinued, the parties shall Dcccpt comparable statistics on ihe cost of living as shall be compiled and published by an Agency of the United States or by a responsible IjnanciaJ periodical of recognized authority. 1). if the construction of any drillsite (including associated pits), location for storage raciliu'es or other lease cquipmem shall rcqulru the removnl of top soil, such top soil shall be stored separate from other soils, so tliat the same may be spread back over the surfacc during restoration operations. Within a reasonable time after cassation oT drilting or reworking opcrotiona or plugging and ubaudonment of the hole (but not to excccd three months thereafter), weather permitting Lessee shall level Ml dumps, fdt all pits, remove or rake and burn all brush and debris, replace any top soiJ removed, and put Ihe surface of Ihe land in substantiafly the same condition as it was before the comcnencenient ufiiucli operations, and shall disc (he utilized area. Lessee agrees that tfany oil-based mud or drilling compound containing a hydrocarbon base or any material which is harmful to Ihc soil is used in Lessee's operations on said land, Lessee shaJl remove all such muds, compounds and materials from the land before pit filling ajid leveling is underUjken, and all such harmfut materials shall be disposed of by lessee off'the l/cascd Premises, Water-based drilling mud not containing any ofKHid substances may be spread over the wcllsite location aftor it is properly dried, provided it meets with the industry standard for chloride allowance. K. Ifuny well drilled hereunder is completed as a producerof oil and/or gas, us a part of Lessee's surface restomtiun obligation, Lessee shall reduce the oieaofUie pad constructed for drilling such well to a size roasnnably necessary to uccoirimodalo producing and reworking operdJions, so thnt the cxccss area may be restored to agricultural use. Withiri a reasonable time aRcr any such well has been plugged and abandoned (but not to excccd three montlis therearter, weaihcr permitting), I .ynsee simli restore Ihe suifacc utili/.cd in (he production and operation ofsuch well in accordance with the provisions of Subparagraph D. of this Seciion M. 20 G3 40 1 4 0 F, At Lessor'^ ^nd/^r b-urface owners request. Lessee agrees to erect and maintain fenccs around all pits dug on the loused Hreniiscs In connection >vUh drilling or fi5working opcmtions promptly after cessation of such drilling or reworking operations, and shall erwct and maintain fenccs around all tank batteries, hazardous machinery and conditk)n!i and other facilities for the protection of livestock. Such fences shall be con.s. K. Prior to crectlng any storage tanks, pipelines, compressor stations, or other lease facilities required by Lessee for operations under this Lease, Lessee shall advise Le.tsor and/or the surface owner of Lessee's intentions, and said porties shall mutually decide upon the location ol'such fuciiidcif, tukittg into consideration Ihe surfacc ;isc by the surfacc owner and Lctuico's needs in conducting Lessee's operations. Lessee agrees to keep any surface equipment or facilities in good condiUon^ well maintained, and attractive in appearance. If Lessor und/or surface owner has fields located on the Leased Premises, Lessee agrees that any proposed location for Lessee's operation shall be situated in such a manner so as to prevent interruption in the normal agricultural use of such fields und to place Lessee's roads nnd facilities in such a manner so as to limit intrwion on such fields with l.«5sce's o|»eriitJons. L. Lessee agrees to bury all pipelines witJi a covcr of at least thirty-six (36) iijchcs from the top of the pipe to the surfnce of the ground attd to place alt pipeline improvements below the surface except for necessary meter runs and valve sites adjoining wet) locations. In excavating the pipeline ditch, Lessee agrees to "double ditch" Lessee's ircneh. 11ie top soil shall be placcJ to one side and in backftllingtlie ditch, the lop soil shall be rcplaccd on top of the backfill after the construction. At Lessor's and/or surfuee owner's rcquest» Lessee agrees to construct teiTUcea across the right-of-way in such manner us may be necessary to protect aguinsi erosion und to maintain nsasonablc and appropriate surface drainage patterns. All construction vchiclcs sHbII utilt>:c the dcsigtisted pipeline route nnd/or the road(s) dssignatcd by thesurfuco owner. The location of any pipeline, if laid, nnist be approved by l..cssor and/or surface owner which conscnt shali nut he unreasonably withheld. 2H ( Ta 40 142 15. EnYtronmental Provisions. A. A matcritil cuncii(ion to fhe grant of this I^sc is Lessee's agreement that all operations conductcd by Lessee, its agents, servants, employees, conlractora, permittees, successors or assigns on the Leased Premises or on Lessor's adjoming pruperty shall be conductcd in compliBJicc with al) applicable laws, statutes, rules and rcgulatiors of any governmental authority having jurisdiction including, without limitation, sll safety regulaiionii und requirements of the Railroad Commission of Texas ttnd nil vnvlrunmental laws, statutes, rules and regulations of any federal, state or local authority at any time applicable to the Lessee's operations on the Leased Premises. B. Lessee agrees that (i) no toxic or hazarxlous substances shall be disposed of or otiierwise deposited orrtjleased in or on the Incased Premises; (ii)Lc.ssce shall not engage in and shall not permit any other party to engage in any activity with respect to property of Lessor which would cause (u) the Leased Prr^miscs to bccomc a hazardotis waste treatment, storage or disposal facilit}' within the meaning oftlic Resources Conservation and Recovery Act of 1986 (''RCRA'')42 U.S.C. §121^1 ofseq., as now or hereafter amended or any similar federal, state or local law or ordinun(;e or any other environmental law« (b) a release or a threatened release of a hazardous subst^ncc fVoin or to the Leajied Premises within the meaning of the Comprehensive Environmental Response, C!^mpensation,and Liability Act of 1980 ("CRRCLA") 42 U.S.C. §9601 q/"seq., as now or hereafter amendetJ or any slmii«r tedcrul, slate or/ocaJ (aw or ordinance or any other environmental law, or (c) the discharge of pollutants or effluents into any water source or system or the discharge into the air of any cmissiojis, which would require a peimit under the Federal Water Pollution Act of the Clean Air Act or any similar federal, state or local law or ordinance or other environmontitl law^ (iii) Lessee sholl not pennit any substance or conditions in or on the Leased Premises which might support a claim or causD of actioft under RCRA, CERCLA ur other federal, state or local environmental starutcs, regulations, ordinances or other environmental rcgubtory requirements. As used In (he preceding provision, the terms "hazardous substance" and "release" shall have the meanings specified in CERCn^A and the terms "solid waste" and "disposal" or "disposed*' shall have the meanings specified in FICRA; provided that in the event either CRRCI.^ or RCRA is amended so us to broaden the meaning of any term defined hereby, such amendmenls shall apply to l^see's covenants herein, and provided further to the extent that the laws of the State of Texas establisli a meaning for such terms which are broader than that specified in cither CERCLA or RCRA, the broader meunlngs or dctlnitioTW shall apply. Upon the release of any acreage covered by this Lease an contemplaletl by tlie other terms hereof, the covenants and obligations of Lessee respecting surfacc restoration specifically shall include, without limitation, the enviroMmentul und contamination provisions of this Section 15. C. lytfssce ugrees (I) to remove from the Leased Premises and Lesson adjoining property, if, as, and when required by law, any hazardous materials placet! or released thereon by Lessee, its employees, contractors, agents or permittees, (2) to pertbnn remedial work where the need therefore arises in connection with l.essee's operations or activities on the Leased Premises, and (3) to comply in all respects with all federal, slate and local governmental laws and regulations governing operations by and remedial work nn or esssociated with the leased Premises. Such remedial work shall he pertbrincd by one or inoni conti uctors scloctud by Lcisec und approved in advance by Lessor and/or ^urfucc owner, und under Uie sttpervision of a consulting enginucr selected by 1/CSsee and approved In advance by Lessor and/or surface owner. All costs and expenses of remedial work madu necessary by Lessee's operations shall he paid by I^ssuu, including, without limitation, the charges of such contractors and/or the consulting engineer,and Lessor's reasonable attorneys* Pees and costs Incurred in conncction with the tnoniicrbg or review of remedial work. If Lessee shall fail to timely commence or dTS 29 GS 40 143 causc 10 be comment, or Tail to diligcdtly prosecutu \o completion, such remedUi work. Lessor may, but shall not be required to cnusc such remedial work to be performed. Lessee shall notify Lessor of any cl«im or otlxtr action by any guvernmnitu/ Bgency or other thtrd party mvo)ving the actual or alkgcd existence of ha-^ardous muteriat on the Leased Premises, and shall provide Lessor with copies of (1) any notice of any release of hazardous materials given to Lessee pursuant to any law or regulation, and (2) any report of and response to any such incident. I^see agrees to provide such notices, reports or responses to Lessor and/or surface owner within ten (10) days after rcccipt or preparation of same by l^^ee. D. Lessee agrees to indumnffy, payatiJprulcct, d9ftindar>d save Lessor harmless/romaJl claims, liabilities (including strict liHbtlity)^ fees atkd cxpenscii of any kind that arise from the aclua] or alleged prcscnce or release of any hazardouti material in connection with Lessee's operations on Lessor's and/or surfaco owner's property unless caused by the gross ncgligence or willftjl misconduct of llie Lessor and/or surface owner. Tliis indemnification sliull include costs in connecoon with any remedial work when performed by Lessor and/or surface owner or any third party In response to any federal, state or local governmental authority, laws or regulations, due and payable upon demand therefore by Lesror and/or surface owner. As U5ed in this Subparagraph D "remetJial work" is defined as any site investigation or monitoring, any ciea)>np, containment, remedial, removal, or restoration work performed in response to any federal, state or local government authority or pursuant to any federal, state or local statute, rtilo, regulation or other laws. R. The provisions of this Section 15 sIjhH survive the termination or expiration of this Lease In perpetuity. 16. General Pruvl^tioos. A. Lessee agrctss, after cessation of its use of any water well drilled by lessee on the Lca.scd Prcm ises ai id prior to phigging or remov ing the casing therefrom, to tender such water well or wells io Lessor and/ur suriacc owner and, if Lessor and/or surface owner shall olecr to accept same, such water well and the casing therein shall bo and become the properly of Lessor and/or surface owner upon I^essor's and/or sufracc owner's payment to Lessee of the salvage value of the casing in f5uch well; provided, however, thul l.esaee shall have the right to use such well or wcHs at any time during the continuance of this Lease in connection wizh any of Lessee's primary, but not secondary, production operations on the Uased Premises arid, provided further, that Lessor and/or surface owner shall thenceforth assume all risks and obligations attendant to Lessor's and/or surfacc owner's ownership and use of said water well or wells. B. Lessee agrees, with rctcrencc to coch well drilled under this Lease, to allow I^sor and/or surfacc owner, upon timely request, to run a Sclilumberger orsitnilar elcetrical logging survey from the surface of the ground to the total depth of the surfacsce agrees lo divulge to lessor true and correct Infoitiiaiion as fcquested by Lessor as to such well and the production therefrom «nd such technical information as l/Cssee inay acquire and which is readily available witli respect to the sands und fotmations encountered in such welt, unles,\ such infonnation is deemed by Lessee 10 be confidential ftjf competitive reasons. Lcs.sor agrees to keep confidential and not to divulge to any other person information given to Lesser by Lessee as herein provided until such infomiotlon is released by Lessee ,ds^ 31 as 40 145 shall be fully perlbrmed and all payments due under (his Lease sha)] be paid in La Salle Cuunty, Texas, or any other county designated by Lessor In writing hcreancr. Whenever any {nstrunient is required ro be filed for record under the terms of U)!:; unless othor>^'i£e otprassly provided, same shnlt be filed in tl>eOnice uflhe County Clcrk(s) of the counly or counties in which the land covered by thij Lease is situated and at Lessee's eobt, unless otherwise provided. All references in this Lease (o "County Clerk" i)\ean and refer to the County Clcrk(s) of the county or counties in which the land covered by this Lea^e is situatcd. J. All reference to "Lessee" in this Lease shnU mean, include and uppiy to (he numcd Lessee and all parties claiming any in(eres't or interests in the working interest. The maEculine pronoun as used in thi:» Lease shall inchtdc the feminine and neuter and vice versa and, when appropriate, the singular shall include the plural and vice versa. K, All references in this Lease to the Railroad Commission of Texas shall mean and includc any other govcmmcntai authority, state or federal, having jurisdiclion over the Leased Premises, Tlie captions used In this Lease are for convenience of reference only tnid do not limit or amplify the provisions hereof. M. The rights and duties of the piulies under this Lease shall be governed by the laws of the State of Texas. The parties further agree that (he District Court in and for (he county or counties in which (he Leased Krcmlscs are situated shall have jurisdiclion and venue of any and all causes of flutmn bcfvs'pen (he parties concerning this Lease, and Lessee hereby waives any ri^ht (hat it have to remove any suit lUed against it for damages or other actions hereunder to any Federal Court; bul Lessee does not waive any right it may have to appeal any decision retxlercd against it to the Federal Courts, should such appeal properly lie. In the event any payments (but not including royalt>' and shut-in gas well royalty) herein rwjuircd to be made by I,«ssee to Lessor not be made when due, the same shall bear interest at the rate often (10%) percent per annum from the date payment is due until paid and. If any payment required hereunder is in default and is turned over to an at(omcy for coitcction or if the same is collected by a suit Lessee agrees to pay reasonable attorney's fee. N. Lessee shall have no right to erect or drill a salt water disposal well and/or to dispose of salt water on the Leased Premises without first obtaining the consent of Lessor. O. No well shall be drilled within 1,000 feet of any residence now located on the Leased Premises without first obtaining the consent of the surfacc owrier. which consent shall not be unreasonably withheld. 1*. In the event the owner of Iho surface esUite in the Leaied Premises (Ihe "svjrface owner") is not a Lessor, the surfacc owner shall be a third-party beneficiary of this Lease. Q. 1 he paytnents provided for herein as compensation for damage to, or for Ific use of, the Kurfacc of tJie Leased Prcmi.scs shttll be made to the surface owner, and payments for damage to personal properly situated on the Leased Premises shall be made to the owner of the personal properly so damaged. 1 lie surfuoe cwnui of the Leased Premises, lier heirs, devtiiesii, personal cepresentativc.s and assigns. Is the IJiird-party bcncficlary of all ofthe provisions of this Lca.no relating to the damage 10, and the use of» such surfacc estate. I'he parties agree that Ihe surface owner, her heirs, devisees, 33 ffg 40 146 personul representatives ane consent of the iurface owner. 17, Sclamic Operatlons. In conducting scismic operations on Ihe Leased Premise:], Lessee »hall comply with the foKowing covenants and ugreemerttir (in addition to the other applicable provisiojiu of this Lease): A. Le&see shall enter the Leased Premises at locattond designated by Lessor and/or surfnce owner. Exterior gates designated for entry shall be kept closed and locked at all times cxccpt when actually utilized for passage. Interior gales that aro closed when vncnuntenni shall be closed when pitssage has been completed, and Interior gates found open when encountered, shall be left open by Lessee. B. [ycsscc shall conduct its operations in a manner that shall minimize surf^ disturt«nce and damage. All seismic sendero& opened on the Lc^cd Premises shall be cut two dozer blades wide und shall be ter'aced along the slopes In such a munner as to protect against erosion and to maintain reasonable and appropriate surface dminage patterns, Treev iind brush removed in the process of opening scnderos sliall be pushed am) slacked into piles at intervals along the senderos and bunded upon completion of such operations. No true having a trunk diameter of fbur (4^ inches or more shal 1 be cut under any circumstances without the prior written consent of LcKSor and/or surface owner, and Lesbee's routes shaJk bo deviated in order to avoid them. Lessor and/or surface owner tsgrecs such consent siiali not be unreasonably witl^held. C. Al) vehicles shal) be operated in e manner designated to minimize damage (o ttie surl'acc of the Leased Premises. In the conduct of seismic operations, alt vehicles, including support vehicles, shall slay in one set of ruts (that is, follow t)ie samo path) to the extent ncccssai> to prevent excessive damage to the surface. 1). Trucks or oilier heavy oquipmani shall not be moved upon or utilized within the Leased Premises during periods of wet weather when such utilization or movement would msult in creating ruts or other appreciable damage to the surface, E. In conducting its .survey. Lessee shal) not cul nor lay down any interior fence without first obtaininii Lessor and/or surface owner's written consent No perimeter fencca shall he cut or laid down under any circumstanccs. F. Within thirty (30) days from completion of the survey, weather permitting, Lessee shall restore the siirfacc of the Leased Pretnise* to as near its original condition as may be ruasonably practicable. Setidcros may remain, G. In the conduct of Its operations, Lessee shall keep the Leased Premises in a safe and (ileua condition and shall not scattcr, or allow the .'scattering, of any type of waste, broken cquipmcni, used iMins or containers, but shall keep tlic Leased Prcniisea free and clear of all of such rcAjge. All survey tags, ribbons and markers, and all receiver and source pin flags, stakes or njarkcrs utlliyxd by Lessee In Its operations .shall bo removed from the Leased Premises within fifteen (15) days following the completion of the survey, weather iwnnilting. jdTt 34 ©3 4tl 1 4 7 H. I.esscc shall compensate Lessor and/or JiurfBc« owner for surfacc damages resulting from scismic surveys based on prevftfling rate being paid m the area at IIju time; provided, however, that tl>e minimum payment for seismic lines shall be $3,500.00 per mile for corventlonul scismic surveys, md $20.00 per acre for 3-D seismic surveys. Such payment, howover, shall not be deemed compcnsntion Tor damage to the Leased Premises resulting from an unreasonable, extraordlrtary or negligent use of the Leased Premises, and Lessee agree.s to pay [^essor and/or surface owner reasonable compensation for any such damage. Additionally, Lessee agrees to use reasonable care nt alt times in Lessee's operations on the Leaded Premises to prevent injury or damage to livestock, buildings or other properly uf I^essor and/or surface owner situated on the surface of the Leaswt Premises, or water wells and surtBce reservoirs located thcrcon» and agrees to pay Lessor and/or surfacc o>yncr tor ali damages Ig buildingsj^ livestock, fenccs, water wells, surface reservoirs, and, without limitation, all other properly of Lessor and/or surface owner situated on the surface of the ]..eased Premises resulting from Lessee's operations thereon. I. Lessee shall have no right to use water from Lessor and/or surface owner's wells, tanks or watering places without Lessor and/or surface owner's prior consent. J. Lessee shall not intentionally dump, spill or discharge gasoline, oil, hydraulic fluid, fuel, paint or any other foreign substance on the Leased I'remises. Any accidental spill will be cicaned up immediately and reported to 1.4SS0r and/or surtacc owticr. K. >Jo seismic source points shall bo conducted within 1,000 feet of any house or building on the Leased Premises wlthoiitthe written consent of Lessor ond/or surface owner, which consent shall not be unrcasoi>abIy withheld. No shot point shall be located within 500 feet of any water well on the Lca.<:cd Premise.s without tlic written consent of lessor and/or surface ovwier, which • consent shall t>ot be unreasonably withheld, lessee shall test all water wells on die Leased Premise.s within 1,000 feet of each source line before conducting its operations and within 90 days after completion of its operations to insure that no damage has been committed to any water wells or to the quality of the water from the same. Lessee ^hull pay all costs associated with the testing, repair or replacement of any water wells damages as a result of Its operations. L, Ussee may leave on the Leased Premises overnight those trucks and equipment aeccssary to conduct its operations. On all occasions when such trucks and equipinent are left on the Lea.scd Premises overnight. Lessee, as its sole and absolute responsibility, shall secure such trucks and equipment. At all times while on the Leased Premises Ivessee shall solely be responsible for any and all damage caused to any of its trucks and equipment whether or not left on the Leased Premises overnight. l..essor and/or surface owner shall in no way be held liable or responsible for any damage caused at any lime Co any of Lessee's trucks or equipment, or for loss of any of Lessee's personal property brought onto the I^eased Premises. M. At any reasonable time af\er this* Lease has terminated in whole or in part, Ixssec agrees to make available to Lessor and/or Lc.ssoi^s consultants, without cost, Ihe following: With resj>ecl to convi5n(ional seismic surveys, Mylar scplu and Ulacklinc print of (he surveyor's Tobin Map, shot-point base map, and processed cross sections (both migrated and no/i-mlgraicd) and a copy of "Pinal Stack" infonmation, together with a vopy of q|) seismic inpes for cuch seismic line crossing the Leased Premises, with reasonable (ails in each instance so as to provide full fold coverage of the Leased PrcmiMw, "Hic obligation to supply such information is contingent _rfjre 35 Ca 40 148 upon the availability of full fold dala. With respect tu S-D seismic surveys, ell seismic data interpretable on a scisinic computer woric station resulting from the survey insofar as it relates to the Leased Premises, and a black lit>e print of every 10tii full fold In line final processed section and shot point base map of th&t poitiun of the survey which crosses the Leased Premises, with reasonable lails in both instanuca so as to provide full fold coverage of the Leased Premises. Prior to making the seismic data available (o Lessor or eun^iultant^ the Le:i(^or or consultant shall enter into a data use liccnsennd confidentiality agreement, requiring that the seismic duta be maintained as confidciitiui and not be sold, traded, loaned, copied, disclosed, distributed, transferred, or otherwise made available to other parties, lessor and I.essoi's consultants, shall have the right to utilize such data in evaluating oil and gas prospccts on the Leased Premises, and Lessor may show the data subject to the terms of the data use license agreement, to any third party or parties with whom Lessor proposes to conduct good faith negotiations at orms-lenglh wilh respect to developing an oil and gas prospcct Notwithstanding the above, Lessor may not show such data to third parties insofar as the data relates to that portion of the I^eased Premises then subject to this Lease. Lessors use of the data, in the manner speci/lcd herein, shall be at Lessors sole risk and expense, and Losseo makes no guarantee as to the accuracy of the seismic data and disclaims all implied wananties including fitness for 'a particular purpose and merchantability. 18. Force Majeure. In tJie event compliance wilh any express or implied covenant in this Lease or the commencement of drilling or reworking operations or actual drilling, reworking or producing rtp;;rdijoiib by Lessee on the l..cascd Premise.': are prcvetited, delayed or lutemiptcd by war, flood, or other acts of God or of the public enemy, or as a result of searcity of or the inability of Lessee to procure, obtain or use casing or other e<5uipinent or materia! or the servwes of a drilling or other contractor to drill, rework, compJcte or produce said well or wells; or as the rcswil of the inability of Ixbscc to procure permit to conduct such operations; or as the result of any law, order, rule or rcgulalioti of ilie Railroad Commission of Texas or other govemmcntaJ authority, State or Federal; it Is agreed that, upon Lessee's giving notics to Lessor and reasonably full particulars in writing or by facsimile or electronic mail of the cause of such delay, prevention or iitlerruption whhin a reasonable time after the occurrencc of the cause relied upon; then the lime fortho commencement of drilling of such well, or the actual drilling thereof or pn>ductlon therefrom, shall be suspended during the continuance of the inability so causcd, and for a period of sixty (60) days thereafter, but for no longer period, and the limitations provisions herein provided shall be extended accordingly; provided that this provision shall not suspend nordelay the time for the payment ofshut-in gas well royalty or any other payments or royalties payable under the provisions of tliis Lease. 19. Warranty ofTHIe> This L«a.su i.s made by l.essor and acecptcd by Lessee without warranty oftitle of any kind, oilitcr expri;ss or implied. Lessee may, at J^ssce's option, discharge any tox, mortgagu or other lien upon the niinurul interest covercd hereby, uitlier in whole or in part, and in the event Lessee does so, Lessee shall bt subrogated to such lien with the right to enforce same and apply royalties accruing to such pfuty hereunder towards satisfying same. Liassee, prior to discharging any tax, mortgage orothur lien upon any snch mineral Interest shall give noticc of satnc to Lessor and if Lessor objects to the 36 era <10 1 4 9 discharge of such )i(jn bucautiu they arc in good faiUi disputing ihc same and if Lessor satisfies Lessee thut umisonably adequate provision has been made for the payment or discharge of janie, lessee shall not have the right to make any pa>'Tnei}t discharging said lien. Without iniptiinnent of Lessee's right under the warranty In event of failure of title, it is agreed that if any of (he ubuve^namec} parties ownsa mineral interest in the Leased Premises less thnn the entire fee simple estate, then (he shut-in gas royalties, royalties, and other like payments for production or in lieu of production, to be paid to such party shall be rcduced proportionately. 20. Counterpart. This instrument may be executed in multiple counterparts and each of which us so executed shaH be given the effect uf the execution of an original instrument. Such executed counlerparts may be consolidated intu h siingle instrtiment by combining the signature pages and acknowledgments titereto iuid the executing parties hereto acknowledge and agree that such instrument shall be treated and given ciTect for all purposes as a single instrument 21. Mcniorapdum of Lease. The parties hereto agree to execute a Memorandum of this T-easc for recording purposes, IN WITNESS WHEREOF, this instrument Is executed In duplicate originals on the date set forth in the acknowledgements of this Lease, but shall be effective for all purposes as of December 1, 2009. LKSSOR: MARY DCLILLA SNOWDE.N, by Vatrida J. Snowden Kardd, A((oroey-In-Fnct under Power of Attorney ^rfsrc 37 tfa 40 150 LESSEE; / SWIFT ENEKGY OPERATINa LLC, A Texas Limited Liability Company James P. Mitchell, Sr., Vice Presidenl, Commercial Transactions and Land THE STATE OF TEXAS § COUNTY OF LA SALl-E § a r d COUNTY OF DIMMIT § This instrument was acknowledged before me on the ^ day of December^ 2009, by MARTIN MURPHY SNOWl>KN, Nwtuxy Public, Slate ofTexus K AT H f t Y N A . 6 t A C K i N o t a r y P u W f c , S t 8 t « o f To w s My Commlaflicn MofCh 17.2010 ^cl« 38 ;cetnbcr, 2009, by FAT U I C I A J , S N O W D E N K A R D E L L Notary Public, Statcof'Jcxas KATHRYN A. BUCK rS»/wri NoWfv N A t PuWei Arv Stutw oi Tcxo9 T My ComrTM»)on Expires March 17, 2010 _ ^ 0 ^ . No^ry PublkTl^ and for the te end afsuch lease ycar» pay or tender to Lessor, as a minimum annual royalty, the dilTcrence between the amount per acre so paid or accrued during such lease year and said sum of Filly tind No/100 Dollars (S30.00) per ucre contained within the gHS or oil production unit for such wcll(s). 'I"hc payment of minimum unnual royalty provided for in this Subparagraph 4 (C.) shall not be In lieu of actual production uf oil or gas in paying quantities and Lessee shall not be entitled to continue this Lease in force by payment of such minimum royalty if, in fact, the actual production of oil or gas ts not In paying quantities. It is provided^ however, that nothing in this Subparagraph 4 (C) contained shall be oonstr^jed as preventing or delaying the termination of this Lease undertime provisions of Section 8 hereof, nor as impairing lessee's continuing obligurion to rcusonubly develop nnd explore the Leased IVcmlses after the discovery of oil or gas thereon in paying qunntHies, nor as in any monner impairing Lessee's continuing obligations to protect the Leased Premises from drainage by wells on adjoining or adjacent lands, as provided in Section 10 hereof, 5. ^^o Delay Rcntah; Puid~uw Lchsc; The payment or teudcr of shut-in royuUy under Scction 4 may be made by the ehcck or draft of Lessee mailed or delivered lo the parties entitled thereto at the address herein before specified, and shall not be considered '^delay rentals." The cash bonus payment paid in advancc in consideration for this T.ease is full consideration for such delay rentals, Lessee may at any lime exccule and deliver to Lessor, and place of record, a release or releases covering any portion or portions of the above described pretnises and thereby surrender tli Is Lease as to such portion or portions ar^d be relieved of all subsequently accruing obligations for shut-in-royalty as to the acreage j;urrendeied (but not as to obligations which have theretofore accrucd). a. Poolina; Lessee, at its option, in hereby given tlie right ami power to pool or combinc the acnagc covured by this Lea-se, insofar only us gas or gas condensate rights arc concerned, with other land, lease or leases in the immediate vicinity thereof, and to the extent and in the manner hercinafler stipulated, the right lo pool or combine the Leased Premises us to gos being subject lo the following: A, As u.'Mrd in this Scction 6 the following dennition.t xhaM apply: The term on-premisc well means a gas well located f>n or completed under the land covercd by ihis Lease; and the term "orf-prcmisc well" nwans a gas well located on and completed under land not covered by tl^is 1,^'asc. n. Until all of the land originnlly covered by (his Lease Is Included in gas pooled units for on-prcnHse wulls, l^sscu shall have no right or power wltJioot Lessor's prior written consent to pool or combine ajty of the land covercd by this Lea.sc for an on-premisc well unless all of the rcnjuining non-uniiivu;d lease acreagc is included in tlic unit. C. Not less than onc-hnlf (1/2) of any unit formed for gas shall be comprised of lantls jds-t M Ga 40 1 5 4 covered by this Leese for an off-premise well, and Lessee shall have no right or power to pool or combine any of the land covcred by Ihia Lease for an oO'-prcmise well unless at loaslona-half (1/2) of llie unit acreagc shall be comprisod oflunds covored by Ihis Lease and Included in such unit. D. Subject to the other provisions of this Scction 6, Lessee may pool or combinc the ucrcage coveraJ liy lJ)is Lease in order to crcate » gas unit or units containing not n^orc tliat 160 acres, if pooled as to any or oil horizons between the surftcc of the land and the depth of 6,000 feet below the surface (shallow gas unit); and/or (ii) a gas unit or units containing not more thun 320 acres of land if pooled «s to tiny or all horizons between 1})C depth of 6,000 feet below the surfacc of the land and the depth of 8>500 feet below the surfacc (intermediate gas unit); and/or a gas unit or units conloining not more than 640 acrcs, tf pooled as to any or all hurizuns greater than t$,500 feet below the surface of the land (deep gas unit). If at the time of crcation of any such gas unit special Fteld Rules of the ilailroad Commission of Texas applicable to the Leased Premises provide for spacing on tiie basis of less than 160 acrcs for units pooled as to any or all horizons less lhan 6,000 feet below the surfbce or less than 320 acres for units pooled as Co any or all horizons lyin^ between 6,000 feet below the surface of the lund and n depth of S,500 feet below the surface or leus than 640 acres for units puokd as to any or all horizons greater than 8,500 feel below the surface; then Uie I.,eascd Premises, or portion or port ions thereof, may only be so pooled in order to create a unit or units in cumpHanco with such rules and regulations; but m no event shall any such unh contain more than 160 acrcs if pooled a:i to any or all horizons less than 6,000 feet below the surface, norshall any such unit contain more than 320 acrcs. if pooled as to any and all hori/ons lying below 6,000 fest below the surface of the land and n depth uf S>500 feel below Ihe surfacc, nor shall any such unit contain more than 64U acres, plus (en (10%) pcrcent tolerance if pooled as toany or all horizons greater than 8,500 feet below the surfacc, E. Any such gas unit shall be in a reasonably compact shape unbroken by any tract or tracts not included in ihe unit, except for unieased fee-highway strips or unlcascd stalc-Kiwned riverbed- Such giis pooled tinits mny cover jmy one or more stratum or stmta, and units formed by poulitig tts to liny stratum or Strata need not conform in size or area with tiie unit or units in which the Leased Premises may be pooled or combined as toany other stratum or strata. AH of the provisions of this Section G shall be separately applicable to unit or units into which the Leased Premises tntiy be pooled or combined us to stratum or strata which are separately Identified In unit designation instruments. Lessee shall execute in writing on instrument or instntmcnts identifying and dcvcribing the hind comprising the unit, iihall file same for record and, within a reasonable time thereaHer, shall j'urnish an cxccufcd copy thereof lo Lessor, tnch of snid options may be exercised by Lessee from time 10 time, whether before or after production has boon established, cither on rhe lund covered by this Lease or on other land pooled therewith. A unit established hereunder shall be vali which owners of royalties shall be entilicd on production of gas and gas condensate from each gas unit, there shall be allocated to the lands covered by this Lease and included In such gas unit a pro rutu portion of the gas and jjjis condensate produced from the pooled unit, aAer deducting lhat used for operations on the pooled unit. Such allocation shall be on «n acreage basis; that is to 3ay» there shall be allocated to the acreage covercd by this Lease that pro rata portion of the gas and gas condensate produced from the pooled unit which Ihe number of surfacc acres covered by this Lease and tncludcd in the pooled unit bears to the total number of surface Hcrcs included In the pooled unit, commencing with the dale of first production from the pooled unit; thai is. royalties shall be paid on the scrcage covcrcd by this Lease and included in the pooled unit from the date of firet production from the pooled unit, whether or not the land covered by this Lease was included In the pooled unit at the date of production or thereafter. Royalties on such portion of the production from off-premise well or wells so allocated to this Lease shall be handled, con)puled and paid in accordance with the terms and provisions of thi^ 1.CUSC, just 03 though such production were hod from on-premise welt or wells on the portion or portions of this Lease so included In such unit. Lessee agrees to reasonably develop and protcct from drainage any unit created hereunder, to the lianie extent as Lessee is obligated under the terms and provisions of this Lease as to the acrcnge covcred hereby. Lessee shall not be liable to any party for reduction of the acreagc content of any unit from loss or failure of title or from any other cuut^ beyond Lessee's control, nor shall Lessee be obligated to make any retroactive apportionment of royalty on sums paid on production in the event of any such reduction in acrcage content. It is expressly understood und provided thai the pooling permitted under this Lease is limited to the pooling of gas and gas condensate, Lessee shall nol huve the right to poo) any of the oilor casinghead gas In, or under the Leased Premises; and any attempt to pool oil or etisinghcad gas sliull have no forue or eflect whatever. Whenever the entire production of and condensate from any such gas pooled unit ahull have icrminatcd and ail gHs wells thcreun have been plugged and abandoned, such unit may be terrniftatcd by Lessee by written instrument evidencing such termination filed for record. K. If this Lease now covcn sepantJc tracts, no pooling, unitiiuitjon or communitization of mineral or royally interests aa between any such separate tracts is intended or shall be implied or result fron) the inclusion of such separate tracts within this l^casc, and the rule of non-appoftionnient shnll be applicable to this Lease and to all lands covered by this! bur Lessee shall nevertliclcss huve the riglit tu pool l.^cssor's interest in any separate tract or tracts, as provided in this Section 6, with consequent allocation of production as herein provided. Ilie inclusion of Lessor's interest in any separate tract within tliis Lease shall not constitute an offer on the part of Lessor to any^ party who may now or fiereafter have an ownership interest in the minerals or royalties in any such separate tract to pool, iiniii/e or coiiimumtize any such interest with other interests covcred by this Leai'u, and with rcspect to Les.sor's irktcrests in <;aid lands, or in any separate tract, and any other pnrt/s interest in said lands, ur in any separate tract, ituch interests shall renmin separate ownerships with neither party having any rights, interests or ownership whatsoever In the rights, interesis or ownership of the other, Any attempt by an owner of uny mineral or royalty intere.st under a separate tract, now or hereafter, In ratify, adopt or confirm ihi.s I ,eHSC, or any provision herein contained, by any means nnd thereby effect a pooling, unitization or communitization of any sepurvle Iract covered by this Lease with any other interests sfiall by such aciion specltlcally ratify, adopt and eunnrm the entire contenLH of thLs Subparagraph 6.F. und such attempt to ufTeei o pooling, unitizorion or eommimttiaation shall be ineffective, null and void for all purposes. A.su.sed in this Subparagraph .6.K thewurds "sejMmiie irflci" jnean any tract with mineral or royalty ownership dlfferltig, fiow or hereaHer, either b.s to panics or uni()unt&, frosn that iis to uny other purt of the lands covered by this Lea^e. dTE 16 C3 4U 156 0. If A well is classified as o horizontal tvell (whether oi! or gas) under the Rules and Regulations of the Rsilroud Commi^ion ofTexas then in effcet, then the tnexiinum of (hu producfion unit shall not exceed in itreii 640 acres, plus a iolcrance often pcrccnl (1D%) thereof, provided that should governmental authority having jurisdiction prescribe or permit (he crcation of units larger than those specified^ for the drilling or operation of a well at a regular location, or for obt«iniing maximum nilowubte from any well to be drilled, drilling or already drilled, units thereafter tnay uunfornn in sl/e with those prvu^ribed or penniKed by govemmentul regulations. 11. Nolwith^ttanding anything contained In this Paragraph 6. to the contrary. Lessee shall huvu the right or power to pool or combine the acrvagc covered by this Leuse with tltc ndjacent rvitl properly to the south of the Leased Premises owned by Gary L. Otto described as 430 acres, more or Jess, out of the J.V. Massey Survey No. 147, Abstract No. 746, La Salle County, Texas. 7. Cessation of Production. If, during the prlmury term and prior to the discovery of oil or gas on said Land, Lessee shall drill a dry hole (hereon, or if, after llie discovery of oil orgiis during tho primary term the production shall cease during the said term from any causc, no operations arc ncceissary in order to keep this Lease in foicc during the rwnainUcr of the primary term. 8 , P a r t i a l Te r m i n a t i o n I J i i i t a f o r P r o d u c t i o n . A. If at the expiration of the primury term lessee is not engaged In the achial drilling of a well on the leased Premises yr if Lessee shall have completed or abandoned a well on the Leased Prumixcs within the ninety (90)'day period prior to the expiration of the primary term, then if Lessee is not engaged in Ihe actual drilling of a well on the Leased Premises at the expiration of ninety (90) days after the date of completion or abandonment of such well, whicJievcr event shall be applicable, Ibis Lease shall then terminate as to all the acreage covered hereby, SAVE and EXCEPT, as follows: (I) As to each well situated on the Ixased Premised producing or capable of producing oil in paying quantities or being reworked and classified aa an oil well under the Rules and Regulations of the Railroad Copnmissiou ofTexas, and producing from any Interval betwecti the surface of the land and (he depth of 10,000 feet below the surface, together with 40 acrvs around each such wcll» In the shrtpe hereinafter provided. Each such oil well and the 40 acre tract suirounding same shpll constitute and tii hcrx;by dctined for all purposes of this Lease as a "shallow oil unit". (.2) As to e^ich well situated on the Leased Premises producing or capable of producing oil In paying quantities or being reworked and classified as an oil well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval greater than 10,000 feet below thesurfaccofihc land, together with 80 acres around each such welt, in the shape hereinafter provided. Eiich such oil well and the CO ocrc tract surrounding same shall constitute and is Itete defined for ull purpocwis of this Lease as a "deep oil unit". (3) As to each well producing gns in poying quantities (or eapublc of producitjg ga.s in paying quantities with all shut-in gas well royally liavhig l>et;n paid Ihureon) or being reworked and elassiftcd as a gas well under the Rules and Regulotions of tho Railroad Commission ofTexas, and prodtjcing from any interval between the surfacc of the land and the depth ofrt.OOO feet below the _d'yc 17 G3 4C 7h/lY\Jr 157 surface, together with 160 acres sur'oundingeach such gas well, or such portion of the lond covcrcd by this Lcafic which shall have been included in a gas pooled unit under the provisions of Section 6 hereof. Each such gas well flnd the iracl surrounding same, as herein prescribed, shall constHuto and bt: roferrcri to as "shallow gas unir. (4) As to each well producing gas in paying quantities (or capable of pn>ducing gas in paying quantities with all shut-in gus well royally having be«n paid thereon) or being reworked and classified as a gas well under tlic Rules and Regulations of the Ruilroed Comtnts^ion of Texns, and producing from any interval between the depth of6,000 feet below tlie surftce of the land and Ihe depth of 8,500 feet below tlte surfacc, together with 320 acrcs surrounding each suul) gas well, or such portion of the land covered by this Lease which shall have been included in a gas pooled unit under the provisions of Section 6 hereof Eauii such gas well and the tract surrounding same, as hertin prescribed, shall constitute and be referred to as "intermediate gas unit". (5) As to each well producing gas In paying quantities (or capable of producing gas in paying quantities with all shut-in gas well royalty having been paid thereon) or behig reworked, and classified q gas well under the Rules and Regulations of the Rnilroad Commission of Texas, and producing from any interval gidater than 8,500 fuel below the surface of the Innd together with 640 acrcs, plus ten (109^) perccni loleruncc, surrounding each such gas well, or such portion of the land covurud by this Lca:^: which shall have been Included in a gas pooled unit undur the provisions of Section 6 hereof. Each gas well and the tract surrounding same, as herein prescribed, shollconstitiiie and be referred to as "deep gas unit". (6) As to tmch hori?.or)taJ wul) situated on said lands producing oi] or gas li) paying quantities (if u gas w(;ll, a well capable of producing gns In paying quantities with al( shut-in payments having been paid thereon), together with the number of acrcs prescribed or permitted by Held or statewide rules of the Railroad Commission ofTexas to be aligned to such well for drilling or operating at a regular location or for obtaining the maximum allowable therefrom, but in no event greater than 640 acrcs, plus u tolerance often (lOH) percent thereof, or as may thereafter be permitted by govommcnCul regulatiors. Each such tniet around each auch well shall be in as nearly a square or rectangular shape as practicable within the coniiguration of the outer boundaries oflhc Lcaiwd Picmlses. D. If Ht thu uxpifiitiun of (he primary term or at any time wrihin tlie ninety (90) day period prior to the exptration oflhc primary term, Lessee is then engaged In the actual drilling or reworking of a well on the Leased Pietnisesor if Lessee shall have completed or abandoned a well on Ihe Leased Premises wiihln the ninety (90) day period prior to the expiration of the primary term, then if [>e85ce is engaged In the actual drilling of reworking of a well on the Leased Premises at die expiration of ninety (90) daysarter the later of completion orftbandorimcnt of such well, whichever event sholl be applicable, (his Lease shall not terminate so long as Lessee shall pursue the drilling or reworkingofsueh well with rensonoble diligence to completion or abandonment and so long as Lessee shall commence the actvial drilling of additional and ^iuccesslvi: vvclls uii the Leased Premises at (he following interviils; (i) not moru than one hundred twenty (120) days shall clapso following completion of one well on the Leased Premises, u:> a producer ur dry hole, und eonimeneciiieiit of actual drilling of rhe next well on the l^^d Premises, if Ihe last previous well on the Leased Pruiiiiscs has been drilled to a depth not more than 11,000 feet below the surface; and (li) not more jdTt iR as 40 158 lhan one hundred eighty {180) da>'s shall dapsc fuJfowing compfclioo of one well on Hie Leased Premises, as a producer or diy hole, and cocnmencemenl of actual drilling of the ncxl svoll on (lie Lrascd Premises, ifthc la&t previoi^ weil on the Leased Premises has been drilled to a depth greater than 11,000 feet below the surfacc, If and when Lessee shall fail to commcnce the actual drilling of any siiich wells above provided tit the intervals above provided (or with in the extended time as may be provided in Subparagraph E., below), then notwitiistanding any other terma and provisions of this l^ase to the contrary, it Is expressly provided that this Lease shall then terminate promptly upon such failure as to all the acrcage covcrcd hereby, SAVE aiid HXCEPT as to the shallowoi! unlti, deep oil units, shallow unite, intermcdiale gas units and deep gas units and horizontal units, us above provided, aju! this Lease shull also terminate in depth, as provided in Subparagraph K.., below. C. The actual drilling of a well as such words "actual drilling" arc used in this I^asc, shall be considered to be commenccd when there have been erectcd on the Leased Premises at the location for such we!), a derrick, a rig and machinery capable of drilling to a depth sufficient tole,sla prospective oil or gas horizon on the Leas>ed Premises, and when such well shall be "spudded^in" and rotating under power. Whenever the provisions of this Lease refer to "commoncc" or "commencement" ofa well, it is intended to mean llie commcnecment of the actual drilling of such well. For purposes hereof, the date uf eornpletiun of a wel) ^hall be twenty (20) days Ibliowing the last to occur Dr(i) perforation of the producnon casing and/or liner, (ii) completion of all artiftcia) stimulation such acid n-calment, fracing or swabbing^ and (iil) completion of all other "completion uperatiuns" that a rcasonabltf operator would use and employ in a good faith effort to obtain production from such well; provided, however. If tJiirly (30) days shall elopse between the cessation of any such completion operation and the resumption thereof or the commencement of a new completion operation, the well shall be deemed to have been completed at the expiration of said thirty (30) day period. "Jlic date of abandonment ofa dry hole shall be the data Indicated on the Railroari Commission of Texas Plugging Report for such well or ten (10) days aner the release of the rig from *uc)i location aflcr testing, whichever is earlier. "Reworking operations" n» that term Is used in this Uasc shall tnean reentry into a well previously completed as a producer, and actual work in the hole, in a good and workmanlike maimer and prosecuted with reavonablc diligcnoe. U. Each well drilled under the provisions of this Section B after production Is discovered on the Leased Premises shall be drilled with reasonable diligence and in « good and workmanlike manner in a bona fide attempt to produce oil or gaa therefrom. lu It is further provided that if Lessee shall, in the conduct of drilling operations hereunder aHor the expiration of the primary term, commenec the actual drilling of any ncxl succeeding well within less than the time Interval specified for same in the provisions of Subparagraph B., above, and thus speeds up thy development of the Leased Premises, Ixssce shall have the credit In time for such accelerated development and Lessee may suhsctjucntly in the conduct of drill ittg operations take advantage of such credit In time cn h cumulative basis, and tiius extend the time for the commencembril of ihc uctual drilling of any subsequent well or wells required to be drilled under the terms of this Section 8 in order to prevent a termination of this Lease in accorUancc wl^i the tcnrw und provisions hereof und the limilHtion provisions hereof shall be extended accordingly. Lessee shnil notify LosKiir witliifi thirty (30) days ufler the oceurcrtce thereof, in writings of the date of commencement of the actual drilling of each well and also of the time credit dairnui by Lessee, If any, in eonncclion with each snccecding well. If Lessee shall fail to so notify Lessor as above provided, Lckscc shall not be entitled to any crcdit in lime for accelcrated dcveloptricnt aj; provided herein. The foregoing provisions with respect to accumulation of time assumes that only one well will be drilled at jiTZ as 40 159 Re: Cause No. 12-06-00122-CVL; Swift Energy Operating, LLC vs. Patricia Jo Kardell et al.; In the 218"' District Court, La Salle County, Texas EXECUTED DIVISION ORDERS rSVVlFT ENERGY PRODUC HON) D i v i s i o n O r d e r D a t e : D e c e m b e r 1 6 , 2 0 11 Lola Mae Minson Akers Decimal Interest .01250000 ('/ix 1/5 X 1/8) Pamela Boss Decimal Interest .00312500 ('/2X 1/4 X 1/5 X 1/8) Dean Edward Burketl (Life Estate) Decimal Interest .00208334 (1/3x1/4x1/5x1/8) Brian Hunter Decimal Interest .00208333 (1/3 X 1/4x1/5x1/8) Jenny May Woodall Lawrence Decimal Interest .00078125 (1/8 X 1/4 x 1/5 X 1/8) Malydalyn Jones Mitchell Decimal Interest .00625000 (1/4x1/5x1/8) L o u r c n e Yv o n n e Wo o d a l l Va n c e Decimal Interest .00078125 (1/8 X 1/4 X 1/5 X 1/8) Sharon L. Williams Decimal Interest .00312500 ('/2X 1/4x1/5x1/8} F r a n c i s M a d i s o n Wo o d a l l Decimal Interest .00156250 (1/4 x 1/4 x 1/5x1/8) Johnny Lee Woodall Decimal Interest .00078125 (1/8x1/4x1/5x1/8) Transfer Order / Division of Interest Schedule Date: August 13, 2012 Jenny M. Lawrence Decimal Interest .00078125 (Transferor: Patricia Elma Childress Ward Cogovan) Jenny M. Lawrence Decimal Interest .00078125 (Transferor: Brandy Cannon fka Brandy Yvonne Childress) Stipulation of Non-Participating Royalty Interest Brian Hunter 1/3 of 1/4 of 1/5 of 1/8 160 ir!Ha53 DIVISION ORDER R€ce Operator: Swift Energy Operating, LLC County ai^d State; La Salio and Dimmit Counties, Texas Property Description: 2,137.9/9 acres of \and, more or loss, out of the T. T. R. R. Company Survey No. 137. Abstract No. 762; the John H, Gibson Survey No, 143, Abstract No. 72B; the J. V. Mas&ey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey f^o. 138, Abstract No. 1809, La Salic County, Texas, ai>d the Wm. Clary Survey No. 143, Abstract No. 14B6 Dimmit County, Texas Owner Name; Lola iVIac Vlinsmi Akers Owner Number. 14253 407 TuU Avo. Type of Interest; NPRI Taft, TX 78390 Dcclmal Interest: .01250000 (1/2 X 1/5 X 1/8) The understgned ce>l)fiGS it is Ihe ov/ncr of the decirrU result ji> 2U7» withholUirig and will not be ri^fundabta by Sv/ift. 7Aki,\^ /i / .a DIVISION ORDER Received To: Swift Energy Operaling, LLC Date: December 16, 2011 16825 Northchase Drive, Suite 400 Houston, TX 77060 Property Nwinber: 4210t8835 t,anent without interest, unless onieiwlse required by applicable statule, pending resolution ol a title dispute cr acverse datms asserted regarding the interest in productlci^ claimed nerein by the undersisned. The undersigned agrees to indemnify and hold Swi^; harmless from all iiab«ljty resulting from payments Tiade to the ov/rver in accordence with such division of interest including but not limited to attorney fees or judgments m connecli:>n with any suit that affects Ihe undersigned's interest to which Swtft Is .made a party. The undersigned shall notify Swi/t in writing of any Jawsuit affecting ihe undersigned's inleresl. Swift may accrue proceeds until the total amount equals $100 00 or more. Checks will be issued monthly and revenue wno wit! no< rargndabla by Swill. . m . . #1456-7 Rece'w®® i/j,/90|3-?W DIVISION ORDER To: Swift Energy Op«rBling, LLC D a U : O e c fi m b e r 1 6 , 2 0 . 11 - ^ w c i fi o n 16825 Northchase Drive, Suile 400 Houston, TX 77060 4Z1018835 Effective Date: First Production Property fslumbor: Property Name; Snowden EF 1H (Octobcf 1, 20111 O p e r a t o r. Swift Energy Operating, LLC CouiUy and Stale; La Bade and Dimmit Counties, Texas Property OescripVton-, 2,137.979 acres of land, more or less, out of the T. T. R. R. Company Survey No, 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. A/lassey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No, 143, Abstract No. I486, Oimmit County, Texas Owner Name; Dean Edward BurKett (Life Estate) Owner Number: 14257 4400 Blue RIdgc Type of Interest; NPRI BBlton,TX 76613 Decimal Interest: .002QB334 {1/3 X 1M * 1/5 X 1/8) The ^.lnc^ersigne(i certifies it is the owner of tho decimal inteiest in production cf proceeds as sei ou: on the Divrsion of Interest Schedule attached hereto and made a pan hereof. Swift Energy Opcrat'ng. LLC ("Swift") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, inciuding changes of interest contingent on payment of money or expiration of time. All such changes 5ha\l be eftectiye \he first day of lha month following receipt o! such notice which shall include documents salisfactcr^iy evidencing such change Swift is authorized to withheld paymenl withou't interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production cOimed herein by the undersigned. The undersigned agrees to indemnify and hold Swifi harm.'ess from all liability resulting (rom payments made to the owner rn accordance with such division of interest including but not limited to attorney fees or Judgments in connec-icn with any suit that affects the tmdersigned's iriterest to which Swift is made a party. The undersigned shall notify Swift In.wiiting of any lsv;su\t affecting the undersigned's interest. Swift may accrue proceeds until the total amount equals S100.00 or more. Checks will tje issued nwnlhly and .'evenue will be accrued and paid whenever a minimum of 5100 is reacfied, or annually, whichever may occur firsl, Payment? of less than $10 will be held until production ceases or until the owner changes. This Division Order c'oes not amend any lease or operating acreerr>eni pt5twef?n the undefS»onec and the lessee or opeiaior or any other contracts for the purchase ol oil or gas. In addition to Ihe terms and conditions of this Divrsion Order, the undersigned and Swifi may have certain statutory rights under the laws of t^ie state in which ttie property Is located. Owner Siflnature' Owner Address: >4400 H p I -UM, it O w n e r Ta x I D / S S N o Owner Home Phone ^ Owner Work Phone: —4), Owner Erfnail: Federal Law roqulrss you to Jurnlsh ygur Social Socurity or Taxp*y«r IdentifiwAlton Number. Fatluro to coinpiv will result i»i 2B% _ withholding and will not t>e reiunddble by Swifi. _ ^ /. .n rw-" J ■- y] .\ ri 163 1 SWIFT ENERGY 0PF:RATINC, Ll.geceivea A i i T i K j i i i / A i i o N i x m i - j . n c i K O r v i c i U N ' D S I R A N S I - I - K p AV M i i K r !• .V : • ■ 0:\n CUviicr So.i!i I'lKT^yOpci-jiiitji. l.l.C is pk-asctl m «rfcrclcL'li«iiic£lLpnM».'rhis »viU jirovitii'you opiitdi iliiciitly iiiii) y*nir kink Tlic {nncL-s^in^ of thi* an|)(l<'iii'0» timy (iikciip in (hirly (JO) tljiys- I'l) viDiiio (liu 5i*ctirjiy «:iymcnis, Swil'l l'!iicr|,>y \Ytll bi' ulilixinj: tbu Aiiuvitnlcd CIcitriDj^ I knt^ (ACH) iivMCm To be crjiiiii n\- itic t>|ii|)t{y lOiti'cil ii'i no due lo )n(iil tkhvoy (imc tiiKl l)iriii.-clcurins tinw. Uiv iSCU crnlU iii iivi)i\uhlc t'uin)s w'tW h;-. u;ci't\ai mlii yom nrcoiitti lltrcc (.)) iliiys ulUr ihcdiccV; tvoiil;! have 'xvu '*< il**: Cicrtii5 iliiv uii ii tioivhi'.siiic^> diiy will be rccctvvU c i'oiiiiiu ns now scinti rvvcivL-d wiOi N uurciicck Direct Deposil Bniolltnenl Fnrm Idciuiiy Hiis foi iti Jisft: NI;\V API'LICATIOK [ CllANUii C ; A N C K i . l , AT I O N 0>HK'r Nnuit t)w»\vT NumK'f Tun li>N'n / SuLinl fvc-.ufiiy Jso. Hioiic Niiinbcr ^ U ^ i c h r h r. JS_4^£Z2 Cily StJic v. ' p C c x l C I CtKik bo.s if N'on (0 cluinjiC iliv udilrcslN •>» I'lic wiih Uicaddrv^ liitciJ iibovc. 3 IMi'iisu ptoviik' iliL cDiTccc AliA/i'oiiiiii'j in!in)>ci d))(i ucvikidi iiijiiihi:i' frti your ftitnitcial insiiiiiuot). \ ^(oiKt-k' iny M u . AI)A/Roi;iinc »< tor ACH Awcouol S N3hti>. iitisi, ctr.. iiuliitk yixii lUk lltoriiy. (f Hjuitu ocvjK»«». ii«fjf. SiiiidOO. Muiisiou.'I X 771)60 •> AsicMiioi). 0»vncr Rclisiions l>:pnVtmctii I ' L K A S K AT TA C H A V O I D E D C H R C K F O R T H K A C C O U N T T O W I U C I I I M Y M K N T S W I L L R K l > K . P O S i T F. D Qurttioncconcxniif^g IJiaci Dcposii l^inn - I'kjse c;ill Su ilj /incigy lU-liincMis UvpiivuiKiit 3i»I-S7*iOf>06 iti viukiI ly i fi l DIVISION ORDER To; Swift Enorgy Operating, LLC Dcilo: December 16, 2011 1S625 Northchase Drive. Suite 400 Houston, TX 77060 421018835 Effective Date: First Production P r o p e r t y N u m b & r. Property Name: Snov/den EF 1H (October 1, 2011) Operator: Swift Energy Operating, LLC County ar^d State; La Salle and Dimmit Courxties, Texas Property Description: 2,137.979 acrcs of land, moro or loss, out of tl»e T. T. R. R. Company Survey No. 137. Abstract No. 7S2; the John H. Gibson Survey No, 143, Abstract No. 728; the J. V, Massey Survey No. 147, Absiract No. 746; and the Win. Clary Survey No. 138, Abstract No. 1609, La Satle County, Texas, and the Wm. Clary Survey No. 143, Ab$1»act No. 14b6j Dimmit County, Texas Owner Name; Brian Hunter Owner Number; 14259 9910 E. 99"* Street Type of Interest: NPRI Tulsa, OK 74133 Decimal Interest: ,00208333 |1/3 X 1/4 X 1/5 X 1/8) The unitdrsigned certifies it is the owner of the decimal interest m production of proceeds as set oul on the Oivisian of Inte.'Bsl Schedule attached hereto ond made a pari hereof Swift Energy Operating, LLC ("Swift") shall be nolified, in Wfiting, of any change in ownership, decimal intecesi, or payment address, including changes ol mtcrest contingent on payment of money or expiratior» of time. Ail such changes shall be effective the (irsl day of ihe mcnlh following receipt ol such notice which shall Include docurnents salis/actorily evidencing such change?, Sv/ifi is aolhoMzed to v^ithhoiil payment wilhoul interest, unless othecvvise required by applicable staluie. pentiing resolution of a title dispute cr adverse ciai:T« assertt^d regarding the interest in production claimed herein t^y the undersigned. Tho undersigned agrees to indemnify and held Swift harmless from ail liability resulting from payments made to the ov^ncf in accordance wilh such division of interest including but not limited to atiomey iees or judgmenib in conncction vvith any sji' ihBl aHects !he undersigned's Inleresl to which Swift is made a paity. The undersigned shall notify Swift in writirig of any lawsuit affecting the undersigned's interest. Swift may accivte proceeds until the total amourU equals S'00.00 0.' more. Checks will be issued monthly and revenue v/ill be accrued end paid whenever a minimum of S100 is reached, or anr^ually. whichever muy occur first. Payments of less tnan SIO will be held until producUon ceases or unlif Ihe owner changes This Djvtsion O.'de/ does no' amend any lease or operating agrcemeiU between the undersigned and th^ lessee or op;:rator or any other conirnclGi for liie purchase of oil or gas. In addition tu the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights unde/ the fav/s of the slate/in which ihe property is located O^vner Signature- f?6ceived Owner Address: O ' . v n e r Ta x I D / S S N o • SI- ^lOO iLancJAdmini'3irh'»....k. O w r. e / H o m e P h o n e . O v > ' . ^ e r Wo r k P. n o n e ; 1 I Owner Email bV^o A \ -y-r t\ be - ( Mtxio/fr. fcnrm Fudetiil Ivw reciuirff& you to furnish youf Social Security or TaKpayer IdomHIcaiion Numl>or F«llur^ (o corr^ply wIM rosuli i»> 78% withhoidm^j and will net be ^Btur^dah^c by Sv/lh. 1 6 5 DIVISION ORDER f^ecaWed To". SwKt Encfgy QiJerating, LLC Date; Decetnbor 16. 201'^ M l 16825 Norlhchjsc Drive, Sghc 400 HQVISIOII, TX 77050 Properly Number: 421018S35 l.andA o1 the slate in v/hich the propectws located. Owner Signatures, 0\vnc> Address O w n e r Ta x l O / S S N o . Ov/ner Home Pfvane Owner WOf(< Phcne: aJ/A- Owner EmaH: ^^IWll[ < IcxDma - Foiieral Law rcqiiWes yo\i lumish /ot'r Socinl {Security or Taxpa/cr IdcntiTtCdiion Numbut. Palluro to coenl between the undersigned and the lessee or operator or any olt\er contracls tor the purchase of oil or gas. In aodiiion to :he tem^s and conditions of this Oivlston Cider, ttie undersigned and Sv/lft may have cc.'lam statutory righis under the laws of the blate in v/hich the propeity i^Qcated, Of/net Signature- . V ^ f ^ Ov/ner Address. / /. h /// J O w n e r Ta x l O / S S N o . (/> ^ 3 ^ 0*wner Home Phone: Owner Work Phone: _ A)'^ Owner EmaiJ: f\/ Af V .M:K-kp{t .///d.g'iA.U kXVU^, Kodnral t.«w r«i)iiSres yuu to (urrilaH ycur Social Security or Tjspaysr lOeiiUriCdiion Number. Failure to coinpif rrr« roiuli in 28% ■^j|AiH)ldln9 ar^ci vti'tl no< ht ro(i;ixJ^bt4i by SMifi. J fi Z . DIVISION ORDER To' Swift Energy OperaUng, LLC l^ecdived Date: December 16, 2011 16B25 Northchaiie Drive, Suite 400 Ho\iston, TX 77060 Property Number; 421018836 Effective Dale: First Production Property Name: SnuwdenEFIH land Adminhitration (October 1. 2011) Operator: Sv^lfl Energy Operating, LLC County and SUte: La SaMe and Dimmit Counties, Texas Properly Dosc»iptior>: 2,1 J7.979 acrcs of land, more or less, out of the T, T. R. R. Company Survey No. 137, Absioct No. 762; the Joiiii H. Gibson Survey No. 143, Abstract No. 728; the J. V, Massey Survoy No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Sallo County, Texas, and the Wm. Clary Survey No. 143, Abslraci No. 1486, Dimmit County, Texas Owner Name: Lourene Yvonne WooUaH Vance Owner Number: 14261 16369 County Road 1113 Type of Interest: NPRI Occimal Interest: ,00078125 Flint. TX 75762 (1/8 X 1M X 1/5 X V8) The undersigned certifies it is i(i« ov/ner oi ihe decimai interest in production or proceeds 3S sel out on the Division oi Interes5 Scliedule gitached hereto and made a pail hereof Swill Energy Operating, LLC ('Swift") shall be nolified, in writiny. cf any change in ov/nership, decimal inleresi, cr paymeni address, including changes of i.nteresl contingent on payment of money or expiration ol lime. AH such changes shall be efleclive the Ursl day of ihe month follov/ing receipt of such notice whicn shall incltJde documenis salisfacionly evtdenctfvg such change Swift is authorized to wiihhoid payment without interest, unless oihervi'lse required by applicable statute, pending resolution of a lille dispute or adverse claims as&erled regarding the interest in production ciaimed herein by the undersigned. The understgiied agrees to indemnify and hokJ Swift harmless from all liability resulling irDn> payments made lo Ihe owner in accordance \vilh such division of interest ittcluding but not limited Ic altomev fees O' judgmenlii in connection wilh any suit that offsets ihe undersigned's interest lo which Swift is made a parly. The undersigned snail i^otily Swift in witing of any lawsuit affecting the undersigned's interest Swifl may accrue proceeos until the total amo'jnl equals S100 00 or more. Checks wilf be issued rnorthly and revenue will be accrued and paid whenever a minimum ol S100 is reached, or annually, wfiichever may occur TirsL Payments of less than SlO will be held until ptoduclion ceases or until the owner changes. Tliis Division Order docs not arr.end any lease or operating agreement between the undersigned and the lessee or operator or any other cont'^acis for (he puichase ol oil or gas. In addition to Ihe terms and conditions of this Division 0/der. the undersigned and Swift may have certain stalutory rights under the lav/s of the slate in which tf^ property is located. ^ Gv/nei Signatuie Owner Address: l-k3h'^. /'Qk i) I 7h9" O w n e r Ta x I D / S S N o . Ownec Home Phone. O w n e r ^ Vo r k P h o n e : O w i Te r E / n a i l : lulu Fa(i«r«l Law rOguires yaij lo furtttsi) your Social Svctirity Qf Taxpayvr )(lcntiMcat>on Nuitibor. Failun lo canply will idkuU ii< I t^llliholding and will not be /'•(iinoabic by Swifi. \ . /oi lf vl;rvmf h/min 11 J M DIVISION ORDER D a t e : D e c e m b e r 1 G . 2 0 11 To: Swift Energy Operating, LLC 16825 Noflhchaso Drive, Suite 400 Houston. TX 770GO E ff e c t i v e D a t e : F i r s t P r o d u c t i o n P r o j j c r t y N u a i b o r. Property Name: snowden EF iHlsnd Aclm\ntetrat(on (Ocioborl, 2011) Operator: Swift Energy Operating, LLC County and Slate: La Salie and Dimmit Couutics, Texas Properly ne«triptlofi: 2,137.979 acfcs Of land, rr.ore or less, out of the T. T. R, R Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Masscy Survey No. 147, Abstract No. 746: artd the Wm, Clary Survey No. 138, Abstract No. 1509^ La Salle County, Texas, and the Wm, Clary Survey No. 143, Abstract No. 1486, Dtrnmi? County, Texas Owner Name; Sharon L. Williams Owner Number; 1425C &10S Niountain Spring Trail Type of Interest: NPRI Fori Worth, TX 76123 Decimal Interest: .00312500 (1/2 X 1/4X 1/S X 1,'8) The ui^dersigned certiltes it is the owner of the dec\ on payment of money or expiration ot tiri*.e. Ad such changes shall be elfeci/ve the fi/s» day of ihe monih following .-eceipl or such notice v^hich shall include documoriis salislaciorily evidencing such cl'ongg, Swif: i& aulhonzed to v/jthhoJc paymef^l without inlfiresl. unless clhen-vise required by applicable slatute, psndtny /esotulior^ of 3 title dispute or adverse claims asserted regarding the jnlerest in production clairned herein by Ihc undersigr.ed. The undersigned agrees to indemnify and hold Swih harmless from alt Il8bi/i;y resulting from payments uiade to the owner m accordance v/ilh such divi^iion of iViterest including but not limited to attorney lees or judgmentb in conneclion with any suit that alfecls the undersigned's interest to whic^ Swift is made a party. T-ie undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest, Sv/ift rnay accrue proceeds until the total amount equals $100.00 or more Checks will be issued monthly and revenue v/iii be accnjed and paid whenever a noinunum of S100 Is lescned. 3r annually, whichever may occur first. Payments ol less !har. SI0 will be held until production coases or until the ov/oer changes. This Division Order does not amend nny lease or operating agreement beweer> the undersigned and the lessee or operator o.' any other contracts for the purchase of oil or gas. In addition to the terms and conditions ol this Division Order, the undersigned and Swi?? may fiave certain slatutor/ rights under the laws olJ^% ete In which the properly isjocated Owner Signature: ■CM tPiL ihHHtonL.) ) Ov/ner Address: y! i-> < 1 .-I-I ■/'^I■, .■ eli C^JL.. Fr^i/^-i- i/d- uf io(I r tJrt-,. t-L—f/- -T-zin ' O w n e r To v ; I D / S S N o :inJ-LSLi-3a£yL Owner Home Phono: "Tn ) ) 0 OI f M- ^ Owner Work Phone ' 1 ? S /c> ^ O w n e r t n ^ a i r. ^ h CLr^r\ '^( lO Cu U Ci V>Dt-i. CO >'A. Foderat Low rer.oirQs yoj lo rwrn»?h yow.- Soc'uM Scciirily of 'l«xp«ycr idflniiltcation Nymbpf. »^i»llt.'rt lo comply will reeuU in 28% wiihholdinfl <ney or exprration of -ime. All such changes shall be ellecltve Ihe first day of the month following receipt of such nolice which shall include documenls satis/actorily evidencing sucn chai-^ga. Sv/ifl is authorized lo withhold payment without Interest, unless othenwise required by appficable staiule, pending resolution o( a title dispute or adverse claims asserted regarding the interest in production claimed herem by the undersigned. The undersigned agrees to indemnify and hold Swifl harmless from all liaLiliiy resulliog from paymer.ls made to the owner in accordance with such division of interest including but not limitec lo attorney fees or ludgmcnls In connection with any suit that af'euls ttie undersigned's interosl to which Swift is made a p?.riy The unoersigned shaii notify Sv/ih in writing of sr>y lawsuit alfectina the undersigned's inlerest. Swift may accrue proceeds until Ihe lotal amount equals $100.00 or more. Checks will be issued monthly and revenue will be ficc'ued and paid whenever a minimum of S100 is reached, or annually, whichever may occuc firsi. Payments of less than 510 v/ill be held until pioduction ceases cr until the ownor changes. This Division Order coes not ai(\end any iaase or ope.'ating agreement oehveen the undersigned and Ihe lessee o r operator or any other coniracis for Ihe purcJiase ol oil or gas. In addition lo the lerms and conditions of this Division Order, the undersigned and Swift may have ccrtain statutory rights under the laws of uthe l t ? state vin / i i iv/hich wM Ihei nproperty u p r is u p clocated iiy ib * Owner Signature; U&oS^ O^Atncr Address: O v / n c r Ta x I D / S S N o Owner Mornc Phone' 903- IHHZ Owne. work pnone: 9Q2' ' / Ool ■ Owner Email: ^ jc>/| (£)_ rJe- i Fcdor;il Law r«quif»» yuw (o lumish your Social SociwU'/ or T&xp-jvor WunViiicaVton Number. fAiUov lo ccmsly wilt resuU In 2fly» ^•inoldi()g and will not bo rQlundi)t>lo by Sw(tl. TT^dMT'iTr.nnr i-x ij\. 170 DIVISION ORDER Received Date: December 16, 2011 To: Swift Energy Operating, LLC 15825 Northchasc Drive, SiiUc 400 Houslon, TX 77050 Etfcclivc Date; Fir»f Proriuction Property Nutubor: Property Natne: s^owden Er Admlntstratton {October 1.2011) Operator: Swift Energy Operating. LLC La Salle and Dimmit Counties, Texas CouiUy and State; Property Oeacription: 2,137>979 acres, more or less, out of the T. T. R. R, Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; th® J. V. Massey Survey No. 147, Abstract No, 746; and the Wm. Clary Survey No. 138. Abstract No. 1609, La Salle County, Texas, and the Wm. Ciary Survey No. 143, Abstract No. 1486, Dimmit County, Texas Owner Number: 14263 Owner Name: Johnny Lee WoodaM 427 East Ransom Road, Space #140 Type of Interest; NPRl Aransas Pass, TX 7ti336 Decimal Interest: .00078125 (1/0 K 1/4 X 1/5 X 1/8) Ttic undersigned certiftes it is jhc owner of Ihe decimal inieresl pioduclion or pioccedf* as sei out on the Diviaior, of interest Schedule attached hereto and made a part hereof Swifl Energy Operaling, LLC ("Sv/ift") shall be notified, in writing, of any change in ov/ncrship» decimal mtefost, or payment adorsss. including changes of interesi contingent on payment of money or expiration of lin\e. AH such changes shall be effective the flrsl day of the month following receipt of such notice which snail include documents sa'.isfdctorjiy evidencing such change. Swift is authorised to withhold payment without inleresl, unless o{ri9r.vise fequired by applicable slatuif?, pencntg resolution of a title dispute or adverse claims asserted regarding the interest jn produclion c'aimed herein by '.he undersigned The undersigned agrees to indemnify and ,hotd Swift harmless from at! liability resuJting from paymen-s made to the owner in accordance with such division ol interest including but net limiteo to attorney fees or judgments in connection wiih any suit that affects the undcrsignea's inleresl to which SwKt is rnade ri party. The undersigned shall notify Swift in writing of any la^vsuil sffeding the undersigned's interest. Swifl may accrue proceeds until Ihe total amount equals $100.00 or more. Checks v/lH be issued monthly and revenue will be accrued and paid whenever a minimum of S100 is reached, or annually. v;hichever may occur first. °ayments of less than Sio will be held until prodoction ceases or u/itii the owner changes. This Division O.'de/ does not amend any lease or operating Bg.'eemenl beKveen ihe undersigned and Ihe lessee or operator or any othej contracts for the purchase of oi! or gas in addii^on lo the tenns and conditions of this Division Order, the undersignec ano Swtfl ma/ have certain statutory rights under ihe tews ot the state in wWch the prQ|5^ny is locatcd. Owner Signature OwiiBf Address: Owner Ta x ID/SS No. ; Ov;ner Home Phone: ^Ct /' '?0/ Ov/ner Work Phone: Owner FAX#; " /-9'Aoa F Schcciiile t(llacn9i> Itetttlo iind macit: » pan nereof. Swin Giiergy Opc'aihg. LLC ("Swiir) s.nall be notified, in woting, o1 any change in cvvr,ership. decimal inieres;. or payment add.ess, including c^an9cs o/ irteres: conlingeni on paynieni of money or eypiratton o( time. All such Lhanges shall be eAeclive \he Ifrs; day of the month (oltuw'ir^y receipt of such notice which shal} include documents SdtisfBcloriiy evidencing such change. Sv/iit Is auihorizcti to withhold payment without tnleies;. unless oihemise required by applicable staluio. ocnding ,'e»otii'>ion of a title dispute Of adverse ciatms averted tegardiny t);u inie:e;>( in p(0diia*0n ctsg from payments made to the owner >rt eccordyiKc wii}) suct> division of interest mctuUing but not titrvted to attorrwy tecs or judgments in connection with any sjit ihAi nKects tne undersiyneu'ti inie.'es] to whidt S\vil< Is jiiade a party. The undersigi^ed shall notlly Swift ir. wtiiing of any tgv<.sui{ aiteciing the iii;cieisign«(J'8 )(V,e«esL Sv/ifi may accrue procoeds until *he total amount equals S100.00 0/ .'nore. Checks will be Issuec monthly »r«c tevunue v/Ai tie accrued and paid y/nonevcr o minlrr>um of $100 is reached, ot annuaity, v/hichover may cccui first. Paynenis of less than SIC will be held iinilt production ceases or un'.il the cwnui chattoes Ad future puynieniii siiaK t;e made lo the Tiansfereefs) including edjusimcnt» to paymuiits miidu to the T«aituieiui(s) pno'' :o ihc effeciivc date piovided lur heiein of such chatige. transfer or difference The Trtuis^eree sa i\cfet}y assutne(s) re$portsibili:y toi accouiHir\9 to :he Tfatislerorjs) for any such adjiriimenis. This Transfer Order does not ameno^ny le^se or operating agreement between the uncersigned and itie lessee or ooeratoi or an/ ocner contracts lor '.he purchase of oil or goa. In addition to the terms and conditions of this Trunsfrtr Order, Ihe undersigned and Sv/.'ft may have certain stetulciy tights under the taws ol the state In v/tiich the properly is located. TfdabWt t)y Sv/itl, 172-- DIVISION OF INTEREST SCHEDULE AT TA C H E D H E R E T O A N D M A D E A PA R T O F T H AT C E R TA I N T R A N S F E R O R D E R C O V E R I N G PRODUCTION FROM THE SNOWDEN EF 1H WELL IN LA SALLE COUNTY, TEXAS OWNER OWNER DECIMAL TYPE NUMBER NAME INTEREST INTEREST TRANSFEREE: 14262 Jenny W, Lawrence .00078125 Rl 248 County Road 648 Dayton. "IX 77535 Transferred In accordance that certain Mineral Deed and Royally Trar\sfer, dated April P., 2012, by gnd between Patncia Elma Childress Wgrd Cogovan, a$ Grantor, and Jenny M. Lawrence, as Granlee, recorded in La Salle and Dimmit Counties, Texas. 1 7 3 1 t TRANSFER ORDER RdceivQcl To Swift tnorgy Operating, LLC Date: August 13, 2012 1682S Northchasc Drive. SultG ^00 Aiiij i ■/ mi Houston, TX 77060 Land AdfTJlniStration Effective Date; Next SeUlcmcnt Property Notne: Snowden EF 1H Property Number; 421018835 Operator: Swift Energy Operating, LLC County and State: Ld Salic County. Texas Property nescrlptton; 2,137.979 acres of land, more or less, out of thoT. T. R. R. Company Survey No. 137, Abstract No, 762; the John H. Gtb&on Survey No. 143. Abslract No. 72B; the J. V. Masecy Survey NO. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1&09, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. I486, Dlmniit County, Tejid» ine undcrs^ned i; is the owner of tno decimal interest tn production or proceeds as srM out (i<) the Oivi&)on of laicresi Scl^diiie dUscricd fieieio made a pari hereot. Sv^ilt One'GV Op(?rAiiiig, LLC fSwifC) shall be noiiflcd, in v/riiing, ol any change in ov^nersr^ip, decimal inieresi, or payment address, mcludinu chnnges of interest coniingoni on Daymen! of money or expiration o( tinie. Alt euch changes snau te effec.ive the Tirsi dby oF ihs month foliovvi.tg rccoipt of such notir.e which shall indudo documents satisfacloniy evidencing such change Swifi is dothurii^ed to withhold paytneni witttout interefvi. otherwise requned by apph'cable %latut«, p«i>ding resolution a title dispute or roverse <; a&sened regarding the intere&t in praduciion claimed tierem by the undersigned. The understgned agrees to indemnify and hold Swift tiarmless from all liabilily resulling from payments made to the owner In accordance with such division of ir.ieies: including liut not limited to altontey fees or judgments In conjiecttun with any suit that affects the undersigned's interest 'O which Swiit i& maac a pony. The undersigned snaN notify Swift in writing of at^y lawtjult ^ftecliof) the imdersip'^od'' interest. Sv/>^. ntay accme proc6ed^s uitlit the total amuunt <;()u<ed and pcid v/hettevar a inlnimiim of $1Q0 is reached, o/ annually, which«ve( may occur first, Paymenls ol Jess than StO wi.'t oe hetd uniii production ceases or uniil Ihe owner char>ges. All future payments s^ialt mado to the fransteree^s) liM:ijdli)g adjuslrnonts to payments rtiadfi to the Transferor(9) prior to the cffccilvc oatc piovidcd fnr tiarein such change, transfer or difference. The Ttdnsfcreo so hereby assunie(s) responsibi'iiy lur accounting io the Translerorji) for any sur.h adjustrnents, Th;9 Transfer Order does not amanc/^ny tease or operating apreernen: between the undersiyrted and the lessee or operator ot any other contracts for the purchase of oil or gas tn r.ddifion to the terms and conditbns of this Transfer Order, t^iu undersigned and Swifl may t^ave certain slaulory rights urvoer the laws ol the smte i e f Ta x I D ^ S N o . Saniuot KenOy Cttilcircsw Vi Ward Owtiflr Day I ime Pboner Federal tew rvi^utn:* you to fumnh jreur Soc^at Seci/nty ur Tanpayei JUentiricotton Number. Faitiiro to cofnpiv v^MI resutt in 29^^ (a;( wiinrtolrft'ig aiici will (tot t)o rc^uncJoblo hy Swift. 174 DIVISION OF INTEREST SCHEDULE AT TA C H E D H E R E T O A N D M A D E A PA R T O F T H AT C E R TA I N T R A N S F E R O R D E R C O V E R I N G PRODUCTION FROM THE SNOWDEN EF 1HWELL IN LA SALLE COUNTY, TEXAS OWNER OWNER DECIMAL TYPE NUMBER NAME INTEREST INTEREST TRANSFEREE 142G2 Jenny M Lawrence 00070125 Rl 248 County Road 548 Dayton, TX 77535 interest formerty credited to the Estate of Samuel Kenny Childress V, Owner 14265. Transterred In accordance those ceitain Mineral Deed and Royalty Transfers, by and between Brandy Cannon et al, as Grantors and th© hoirs to the Esta:e of Samuel Kenny Childress V. and Jenny M. Lawrence, as Grantee recorded in La Salle County, Texas NDTlCa OF CONKIDKr^TIALlTY RJCilTS; IF VOIJ ARE A NaTUR-AL PERSON, YOU RICMOVJi OR STRIKG AiN'V OU ALL OF THE FOLLOWING J N F O R M A l t O N F R O M A N Y J N S T U U M K r J ' ! ' T H AT t l t A N S F E R S A ^ ' I N T E R E S T I N REAL PROPERTY BEFORe IT IS FILED FOR RECORD OS THE PUBLIC RECORDS: YOUK SOCf Al. SECURITY KUMDER OR YOUR DRIVER'S LICENSE NUMBER. S r i f U L AT I O N O F N O N - PA RT I C I FAT I N C R O YA l . T Y I N T E R ^ J ^ S T T H E S T A T L O F Te X / \ S { § COUNTIES OF DIMMIT 5 ANDLASALLE i? Tliis Siipu!auoi» of Non-Participniing RoyftUy InlcrcsJ ts cniercrt muary 11, 1984, from Mnbd M. StK)wdcn, it at to Seafirst Coniin«rcia! Corporation, rrnordcri In Volutnc 257, Pnjjc 352 of the Deed Rccords of La Salle County, Texas, and being mure pnrltcitlarly described by metes and hounds on RXHIBIT A, auncltt^d hereto and made a part hereof for all purpo.ses." 640.6X9 acres more or less, aori being composcc of the following approximate acreages: 4.90 ncri» our to Che Tyler Tap Railroad Co. Survey 137, Abstract 762, 4.S4 acrcs out of the J. H. Gibson Survey 143, Abstract 728, 436.35 acres ont of the J. V. Masscy Survey 147, Abstract 746 and 193,51 acres out of the A. Salinas Survey 148, AhNtract 1344 and ftinhcr described in tl;ai ccrtain Warranty Deed tiatcd October 15, 1990, from Al Guevara I'luinbing Co. Inc w Gruntor, ar^d Gory L. Otto, Ijimtq A. Otto, and Rnymond M. Otto as Grantee, recorded of record in Volume 323 Pugc 357 in the Deed Rc4;ord$ of LaSnllc County, Texas, and being more panicularly dcscribcd by metes snd bounds on EXHIBIT B, nuacliet! Iierelo and made a pan hereof for nil purposes." WHEREAS, (Jirougti a sciics of conveynnccs or Ujronjjh inhcritanco. the undersigned purtics. have acquired non-participating royalty intcrcfii.*: in the oil, gns and other minerals that may be jirodDCcd frrim the i^nnris, uud WHEREAS, some luiecrtointy exist cs to tl>e quannim nf royally interest convoyed by Mabe? M Snowden in (liai cenain N'on-Pcnicipating Mineral Deed recorded jn Vohime K-4, Pngc 311 of (he Deed Rccords of LnSaltc County, Te^as, and ir being the dtsire of the undcr.sijjneU panics to clarify their ownership in the royoltiw frt)»n the procluctton of the oil, gas and othcr minerals in A:id under the I.Jiivls;. NOW THEREFORE, liie \indcrsigncd parties liercby stipuiaie and agree that Ihcir non- panictpnting royalty interest m :1ms production of the oil, gas nnd other minerals in and tinkler ihc Lands, as between thCTTiclvcs, is as follows: V" 176 Owner Non- Harticioutinu Rovnln^ Interest l/ life csuiic Rcinnintkrto: nd\k in Scotl Ackcr nnd Slidlu Ackcr Kcinkc nOO FM 62-;. Tildcn, 'I'X 7S072 L d w i n V. A c k c r, J r. l.'<1 nf 1/5 of i/8 1300 I'M 62^, Tildcn, TX 780''2 Binincit Adolpli Ackcr, ns lo a liJc csUiic 1 / 4 o f 1 / 5 o fl / S Remainder to Chine Ackcr and S t e v e n A c k c r. \ 301 FM 62A, TiMcn» CX VS072 l/4ori/5on/8 Adftlpli Ackcr i^onnie Lcc SkidfDOro 1/7. of 1/5 on/8 r/k/a Bonnie Lcc AdumS 124 CR 7712, Divine, TX 78016 L o l a M r. e M i n u o n A k e r s )/2of l/5ofI/8 407 Tult Avenue, TnU, TX 7^500 1/4 yf Wi i>f 1/8 iVIaiydalyniones Mitchell 113 CR n 12, PcnrscJI, TX 730(31 Pamela Boss \n of 1/4 of 1/5 of ]/» Sumn^it Way, MaricUa, GA JOOrtti Sharon L. Williams J/2 of 1/4 of 1/5 of i/S .SJ05 Moun'.nin SpringTrail rr. Worth, TX 76J23 Dean Edward DuikcU, lifce«aic J/3 of 1/4 of 1/S ofl/S RcTiRinder lo Dcc Ann Wilson J-IOO Blue Ridge, BelJon, TX 76513 Daniel Wilson 1/3 of 1/4 of 1/5 of 1/8 2-100 Greenbrier Dr. ttA Mauhatten. KS C6507. Brian Hunter WJol l/4of i/5 ofJ/S 99 J 0 E.99ih Sircci, Tulsn, OK 74133 Francis Madison Woodcll J/4 of l/«i of 1/S of 1/8 >2545 FM208S, l>jiubi)rg, TX Lourcnc Yvonne Woodoll V/incc J / S o fl / 4 o f l / 5 o r i / R : 6 3 6 9 C o » : n l y K o a d 111 3 Flint. TX 75762 Jc:»ny May WoodaU Lnwrer.ce l/R of I/*' of J/5 of 1/8 2^8 County Road (548 Dayton, 7^ 77515 )oJ»nny l.ee Woodoll '/8 of J/4 of 1/5 of J/8 427 iiost Ransom Road, Sp.icc /n44 ArnnSM Pass, TX 7833(5 Ccron Marie Coruni "8 of \h^ of 1/5 of i/Jt 136 Memoiy Trai) San Anlon»o, TX 7)1232 2 Ksiotc of Kenny Childres^> IV, dcccnscd l/!J ofl/^ of 1/5 of 1/8 Patricio E)ma Chitdross Wani 1/8 of I/«l of 1/5 of 1/3 731 Gordon Street, £cen, NC 27288 T O E r F R C T U AT t : T H E P U R P O S E O F T K J S A C R i i E M E N T. f o r t o o i l a n d v a l u n b l e consideration, including, hut not limited (o. (iic terms and provisions of this Stiputalion of Non- Panicipofinp Royalty Interest, tiie receipt nnd suf/lcicncy of wliidi is Jicreby acknowlcdijtd, cach of (he undcrsisncd parties hereby grant, bargoin, sell and convey unto each of the other undersigned parties a siiff>cicnl share of his/liet non^participaling royalty interest it» llie proiluctinn of the oil, gas and oUier tr.iticrah la >ind nnder die Lands wtiich he/^ho now owns, or is j:ow claiming, so ns lo establish ihe respeciive ownership in Uic royoltics from l!:c production of the oil, Kos and other minerals in and under (hv Lands as set forth Above. 'Itiiv instnimcnc affects the undersigned pnrties* iracrcscs in (lie oil, gvis nnd other mir.enils in anil under the Lands and tJocs not cover or uffccl ownership of the surfnce of the Lands, or nny portion thereof This instrument slinil be binding upon itie vnciersigncd panifs. iheir respective heirs, devisees, personal represcntrttivcs, succcssors «iid assigns. This ins;ntment ?nay be executed in multiple cnunterpans nnd cnch counterpart shall be deemed lu be nn original insirumem 'tliiy miimmcni may bc cxecutcd in multiple counteipurts, which all togcdict shDil be considered to he one instniment bindin0 upon the pnnies execulir.g a counteqinrr regnrdless of whether or nor 'cxccutcjr A counterpari. KXKClJTED ot> this ^ j day ofAl arc h , 2012, but efective for nil purposes bs of Dccembcr 1, 2009. 3 E<)v\rin V. Aclfcr, Jr. Brian Hunter Emmcd Adolpb Ackcr Friincis Madison Woocial) Bonniv Lc£ Skidmorc Uowienc Yvynnc Woo<1ol) Vancc a/Wa Bonnie Ltt An [;(lwari) Qnrkcu P. fi r i c i s l i l n i a C h i i d r c s s Wa r d Oantcl Wilson ' \ -379. STATE OF) COUNTY OP The forc^joiiit; lnsii\imcnt wns acknowledged before mc, {he ujiriersigncd Nolnr>' f^ublic, by Brino M-jnicr, Oiis • 20J2. S E A L My Comir)ission Expires: K . JULIA AUTHELIA WINSLOW; X IN THE DISTRICT COURT BONNIE ADAMS; NORMAN AKERS; X MARTIN SNOWDEN; MICKEY X S N O W D E N ; M A X I N E B U R K E T T; X YVONNE CAMPOS AND X LOUISE J. BURT X V 343RD JUDICIAL DISTRICT E D W I N V. A C K E R , E D W I N V. X A C K E R , J R . , I N D I V I D U A L LY X A N D A D M I N I S T R ATO R O F T H E X JOHNNIE LORENE ACKER TRUST X AND EMMETT A. ACKER, X A D M I N I S T R ATO R O F T H E X JOHNNIE LORENE ACKER TRUST X M c M U L L E N C O U N T Y, T E X A S DEFENDANTS' MOTION FOR SUMMARY JUDGMENT T O T H E H O N O R A B L E J U D G E O F S A I D C O U R T: C O M E N O W, E d w i n V. A c k e r, E d w i n V. A c k e r, J r. , I n d i v i d u a l l y, a n d E d w i n V. A c k e r , J r . , a n d E m m e t t A , A c k e r a s I n d e p e n d e n t C o - Executors and Trustees under the Will of Johnnie Lorene Acker, Deceased, and respectfully move for summary judgment upon their counterclaim for declaratory judgment, and grounds for such Mo tion would show: I T h i s M o t i o n i s b a s e d u p o n t h e p l e a d i n g s , a f fi d a v i t s a n d e x hibits on fi l e herein or attached hereto. I I Except as to the amount of attorney fees and interests to which Movants are entitled, there are no genuine issues of mate rial fact in dispute and Defendants are entitled to Judgment as a matter of law» I I I The sole issues presented for determination are whether: A. Johnnie Lorene Acker and the Defendants, or any one or m o r e o f t h e m , b r e a c h e d a n y fi d u c i a r y d u t y o w i n g t o t h e Plaintiffs by reason of the execution by Johnnie Lorene Acker of the four oil and gas leases mentioned in Plaintiffs' Petition and in Defendants' Counterclaim and by the acceptance of overriding royalty interests in the four leases as a part of the consideration for the execution thereof. P Kk terest created by the two overriding royalty interest a s s i g n m e n t s , h e r e i n a f t e r d e s c r i b e d ; o r, a s t h e P l a i n tiffs contend, the Plaintiffs are the owners of an un d i v i d e d f o u r - fi f t h s ( 4 / 5 t h s ) i n s u c h o v e r r i d i n g r o y a l t y i n t e r e s t . Resolution of these issues, depend upon the construction of various documents pertaining to the partition of the Estate of J . E , M u r p h y, D e c e a s e d , h e r e i n a f t e r m e n t i o n e d a n d d e s c r i b e d . Johnnie Lorene Acker was one of the fi v e children of J.E, M u r p h y, D e c e a s e d , a n d i n t h e p a r t i t i o n o f h i s e s t a t e , t h e r e w a s awarded and set apart to Johnnie Lorene Acker two tracts of land i n M c M u l l e n C o u n t y, Te x a s , a g g r e g a t i n g 1 2 0 0 a c r e s b y P a r t i t i o n Deed from her sisters, Edna Mae Jones, Mabel Mullen Snowden and Julia Authelia Ackers (who is now Julia Authelia Winslow, a P l a i n t i f f h e r e i n ) , a n d h e r b r o t h e r, E m m e t t G r a n v e l M u r p h y, d a t e d O c t o b e r 2 7 , 1 9 4 8 , a n d r e c o r d e d i n Vo l u m e 4 3 , P a g e 2 1 8 o f t h e D e e d R e c o r d s o f M c M u l l e n C o u n t y , Te x a s , a c e r t i fi e d c o p y o f t h i s P a r tition Deed is attached hereto as Exhibit "A", The Partition Deed provides in part as follows: "Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or un der the above-described lands are hereby conveyed or are intended or affected by this instrument except as hereinafter provided, and the parties hereto, their re spective heirs and assigns, shall continue to own and hold in corranon all of the oil, gas and other minerals, in, on, and under all of the above-described lands in the same undivided proportion that said parties now own and hold said oil, gas and other minerals together with the right to ingress and egress at all times for the purposes of mining, drilling and exploring said lands for oil, gas and other minerals and removing the same therefrom, and none of the royalties, reversionary in terests, or other rights of said parties under existing oil, gas and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary not withstanding, that the grantee of the surface estate herein, Johnnie Lorene Acker, shall have the exclusive right to execute, without the joinder of any of the grantors herein, any oil, gas or mineral lease that she desires on any such terms as she may desire, and re c e i v e , a s h e r s e p a r a t e p r o p e r t y, s u c h b o n u s e s , o i l p a y ments, and rentals as may be paid under said oil, gas and mineral leases so executed by her, except that she shall reserve in each oil, gas and mineral lease so ex ecuted by her, a base one-eighth (1/8) royalty interest for the b e n e fi t of herself and the other four children M u l l e n C o u n t y, Te x a s , w e r e a w a r d e d a n d s e t a p a r t t o E d n a M a e Jones in Partition Deed from her sisters and brother, dated Octo ber 21, 1948, and recorded in Volume 43, Page 221, Deed Records o f M c M u l l e n C o u n t y , T e x a s , a c e r t i fi e d c o p y o f w h i c h D e e d i s a t t a c h e d h e r e t o a s E x h i b i t " B " ; c e r t a i n l a n d s i n L a S a l l e C o u n t y, Te x a s , w e r e a w a r d e d a n d s e t a p a r t t o J u l i a A u t h e l i a A c k e r s ( n o w Julia Authelia Winslow) in Partition Deed from her sisters and b r o t h e r d a t e d O c t o b e r 2 3 , 1 9 4 8 , a n d r e c o r d e d i n Vo l u m e K - 4 , P a g e 3 1 3 , D e e d R e c o r d s o f L a S a l l e C o u n t y , T e x a s , a c e r t i fi e d c o p y o f which Deed is attached hereto as Exhibit "C"; and certain lands i n M c M u l l e n a n d D u v a l C o u n t i e s , Te x a s , w e r e a w a r d e d a n d s e t a p a r t to Emmett Granvel Murphy in Partition Deed from his sisters, dat e d O c t o b e r 2 1 , 1 9 4 8 , a n d r e c o r d e d i n Vo l u m e 4 4 , P a g e 3 0 , D e e d R e c o r d s o f M c M u l l e n C o u n t y , Te x a s , a c o p y o f w h i c h D e e d i s a t t a c h e d hereto as Exhibit "D". Each of the three Partition Deeds contain the identical provision contained in the Partition Deed to John nie Lorene Acker, quoted above» Mabel M. Snowden had previously a c q u i r e d l a n d s i n L a S a l l e a n d D e W i t t C o u n t i e s , Te x a s , a s h e r p a r t of her father's estate by Deed dated September 28, 1945, and re c o r d e d i n Vo l u m e D - 4 , P a g e 5 3 , D e e d R e c o r d s o f L a S a l l e C o u n t y, Te x a s . T h e c o n v e y a n c e t o M a b e l M , S n o w d e n i n c l u d e d t h e o i l , g a s and mineral estate in the lands therein described, and by Deed d a t e d O c t o b e r 2 7 , 1 9 4 8 , a n d r e c o r d e d i n Vo l u m e K - 4 , P a g e 3 11 o f t h e D e e d R e c o r d s o f L a S a l l e C o u n t y , Te x a s , M a b e l M . S n o w d e n c o n veyed to her sisters, Edna Mae Jones, Johnnie Lorene Acker, Julia A u t h e l i a A c k e r s , a n d t o h e r b r o t h e r, E m m e t t G r a n v e l M u r p h y, i n equal shares, an undivided f o u r - fi f t h s (4/5ths) interest in and to all the oil, gas and other minerals acquired by her by the Deed of September 28, 1945. A copy of the October 21, 1948, Deed is attached hereto as Exhibit "E". The conveyance was limited by the following provision: "It is further agreed that Grantees shall have no in- shall not be necessary for the Grantees to join in any such lease or leases so made; that Grantees shall re c e i v e u n d e r s u c h l e a s e o r l e a s e s f o u r - fi f t h s ( 4 / 5 t h s ) ( t h e s a m e b e i n g o n e - fi f t h { l / 5 t h ) t o e a c h G r a n t e e ) p a r t of all the oil, gas and other minerals taken and saved under any such lease or leases and he or she shall re ceive the same out of the royalty provided for in such lease or leases, but Grantees shall have no part in the annual rentals paid to keep such lease or leases in force until drilling is begun," T h e fi v e d e e d s r e f e r r e d t o a b o v e c l e a r l y e x p r e s s t h e i n t e n t of the parties thereto for the owners of the surface estate of lands covered by the respective Deeds to receive all of the bene fits derived from leasing such owners' land, save and except only f o u r - fi f t h s ( 4 / 5 t h s ) o f a b a s e o n e - e i g h t h ( l / 8 t h ) r o y a l t y , i n c l u d i n g , b u t n o t l i m i t e d t o , s u c h b e n e fi t s a s b o n u s e s , o i l p a y m e n t s , r e n t a l s a n d r o y a l t i e s o v e r a n d a b o v e f o u r - fi f t h s ( 4 / 5 t h s ) of one-eighth (l/8th). I V . T o f u r t h e r s u p p o r t t h e c o n s t r u c t i o n o f t h e fi v e d e e d s a s s e t forth in Paragraph III above, Edna Mae Jones, Johnnie Lorene A c k e r, M a b e l M u l l e n S n o w d e n , J u l i a A u t h e l i a A c k e r s a n d Vi r g i n i a Gertrude Akers Murphy (the surviving wife of Emmett Granvel M u r p h y, D e c e a s e d ) e n t e r e d i n t o a D e c l a r a t i o n a n d A g r e e m e n t , d a t e d D e c e m b e r 9 , 1 9 5 3 , a n d r e c o r d e d i n Vo l u m e X - 4 , P a g e 3 5 0 , D e e d R e c o r d s o f L a S a l l e C o u n t y , Te x a s , a n d t h e r e b y c o n fi r m e d t h e i r i n tention with respect to the rights of the surface owner and the sharing of royalties under any lease executed by the surface own er. A c e r t i fi e d copy of this Agreement is attached hereto as Exhibit "F". The Declaration and Agreement states: " N O W, T H E R E F O R E , f o r a n d i n c o n s i d e r a t i o n o f t h e b e n e fi t s r u n n i n g f o r m o n e t o t h e o t h e r , a n d i n o r d e r t o clarify each deed executed dividing the Estate of J.E. M u r p h y, D e c e a s e d , w e , E d n a M a e J o n e s , j o i n e d p r o f o r m a by her husband Jimmie Jones, Johnnie Lorene Acker, j o i n e d p r o f o r m a b y h e r h u s b a n d , E . V. A c k e r, M a b e l M u l len Snowden, joined pro forma by her husband, J.G. Snowden, Julia Authelia Ackers, an adult feme sole, and V i r g i n i a G e r t r u d e A k e r s M u r p h y, a n a d u l t f e m e s o l e , a n d s o l e d e v i s e e u n d e r t h e W i l l o f E m m e t t G r a n v e l M u r p h y, Deceased, do hereby execute this instrument and hereby declare, that in making the division of the property in the Estate of J.E. M u r u h v. Deceased, it was the inten- to receive all bonuses and rentals on leases that might thereafter be made by the party to whom said surface w a s c o n v e y e d b y S p e c i a l Wa r r a n t y D e e d , p r o v i d e d , h o w e v er, that the Lessor in said oil, gas and mineral lease, so executed by him or her, should reserve, in each oil, gas and mineral leases so executed, a basic one-eighth (l/8th) royalty interest (if all royalty interest was owned by J,E, Murphy at the time of his death, then a full l/8th royalty would be reserved; otherwise a pro p o r t i o n o f l / 8 t h r e s e r v e d ) f o r t h e b e n e fi t o f t h e L e s s o r a n d t h e o t h e r c h i l d r e n o f J . E . M u r p h y, d e c e a s e d , and those claiming under said children or child; and this is particularly true as to the land received by Edna Mae Jones in McMullen County; the land received by Johnnie Lorene Acker in McMullen County; the lands re ceived by Julia Authelia Ackers in LaSalle County; and the land received by Emmett Granvel Murphy in McMullen a n d D u v a l C o u n t i e s , Te x a s , a l l o f w h i c h d i v i s i o n w a s S p e c i a l W a r r a n t y D e e d s t o s a i d E m m e t t G r a n v e l M u r p h y, the Deed of Emmett Granvel Murphy being dated October 21, 1948, and recorded in Volume 70, Pages 527-531 of Duval County Deed Records, reference to which is here made for all purposes, and the other deeds being exe cuted on or about the same date, being recorded in the respective counties where the land is located, and ref erence to each of which is here made for all purposes." Such Agreement expressly states that the surface owner is to reserve in each oil, gas and mineral lease executed by the sur f a c e o w n e r , a b a s i c o n e - e i g h t h ( l / 8 t h ) r o y a l t y f o r t h e b e n e fi t o f the surface owner and the other children of J.E. M u r p h y, and those claiming under such children. Plaintiffs, Julia Authelia W i n s l o w a n d M a b e l M u l l e n S n o w d e n a r e p a r t i e s t o t h e fi v e d e e d s described in Paragraph III above and are parties to the Declara tion and Agreement, and the remaining Plaintiffs each claim under o n e o f t h e fi v e d e e d s a n d u n d e r t h e D e c l a r a t i o n a n d A g r e e m e n t , and all of the Plaintiffs are bound by the terms of such docu ments . V , Pursuant to the authority granted to her under the terms of the Partition Deed, Johnnie Lorene Acker executed four oil and gas leases, each covering a portion of the lands described in the Partition Deed to her, each lease being to Murphy H. Baxter, as Lessee, said leases being described as follows: 1. Oil and gas lease covering depths from the surface of the ground down to 7,000 feet on 532.00 acres in -l-hps . T. F: . Mnr-nhv Siiwav . Sftnt-inn 480. of the South 520.00 acres of the Murphy Sur v e y, A - 11 8 1 , S e c t i o n 4 8 0 , M c M u l l e n C o u n t y, Te x a s , and being recorded in Volume 187, Page 187 of the D e e d R e c o r d s o f M c M u l l e n C o u n t y , Te x a s . 3. Oil and gas lease covering 166.00 acres, being all of the Southwest Quarter (SW/4) of the Calvin P. W r i g h t S u r v e y N o . 1 2 8 , A - 11 5 5 , M c M u l l e n C o u n t y, Te x a s , a n d b e i n g r e c o r d e d i n V o l u m e 1 8 7 , P a g e 1 8 3 o f t h e D e e d R e c o r d s o f M c M u l l e n C o u n t y , Te x a s . 4. Oil and gas lease covering 25.37 acres, being ex cess acreage as surveyed in the J.E. Murphy Sur v e y, A - 11 8 1 , S e c t i o n 4 8 0 , M c M u l l e n C o u n t y, Te x a s , and being recorded in Volume 187, Page 179 of the D e e d R e c o r d s o f M c M u l l e n C o u n t y , Te x a s . A c e r t i fi e d c o p y o f e a c h l e a s e i s a t t a c h e d h e r e t o a s E x h i b i t s " G " t h r o u g h " J " , r e s p e c t i v e l y. As a part of the bonus consideration for the execution and delivery of said leases. Murphy H. Baxter assigned to Johnnie Lorene Acker and husband, Edwin V. A c k e r, a fi v e and one-half percent (5-1/2%) overriding royalty in and to the four leases by A s s i g n m e n t d a t e d M a r c h 2 4 , 1 9 8 1 , a n d r e c o r d e d i n Vo l u m e 1 8 8 , P a g e 2 6 5 , D e e d R e c o r d s o f M c M u l l e n C o u n t y , T e x a s . A c e r t i fi e d c o p y o f such Assignment being attached hereto as Exhibit "K". In consid e r a t i o n o f s e r v i c e s r e n d e r e d b y E m m e t t V. A c k e r, J r. , i n t h e n e gotiation of the four leases. Murphy H. Baxter assigned to Edwin V. Acker, Jr., a two and one-half percent (2-1/2%) overriding royalty interest in each of the four leases by Assignment of overriding royalty interest dated March 24, 1981, and recorded in Vo l u m e 1 8 8 , P a g e 2 6 3 o f t h e D e e d R e c o r d s o f M c M u l l e n C o u n t y, Te x a s , a c o p y o f w h i c h A s s i g n m e n t i s a t t a c h e d h e r e t o a s E x h i b i t "L". Johnnie Lorene Acker died April 8, 1983, and her interest i n t h e o v e r r i d i n g r o y a l t y i n t e r e s t p a s s e d t o h e r s o n s , E d w i n V. Acker, Jr., and Emmett A. Acker, as Independent Co-Executors and T r u s t e e s u n d e r h e r W i l l , a c e r t i fi e d c o p y o f w h i c h W i l l a n d O r d e r Admitting same to probate is attached hereto as Exhibits "M" and " N " , r e s p e c t i v e l y. V I . Partition Deed on such terms as she may desire, "except that she shall reserve in each oil, gas and mineral lease so executed by her, a base one-eighth (l/8th) royalty interest for the b e n e fi t o f h e r s e l f a n d t h e o t h e r f o u r c h i l d r e n o f J . E , M u r p h y, D e c e a s e d , grantors herein, in the same proportion they now own same." Each lease so executed by Johnnie Lorene Acker did reserve a base one- eighth {l/8th) royalty as required under the terms of the Parti t i o n D e e d . J o h n n i e L o r e n e A c k e r , t h e r e f o r e , f u l fi l l e d a n y d u t y which she may have owed to the Plaintiffs herein. V I I . The Partition Deed to Johnnie Lorene Acker also provides, as a matter of law, that she was entitled to receive the bonus con sideration and oil payments paid under the terms of any lease so executed by her. As judicially admitted by Plaintiffs in their Original Petition, the overriding royalty interests in question were granted as a part the bonus consideration for the execution of the oil and gas leases, and under the express provisions of the Partition Deed the Plaintiffs are not entitled to participate t h e r e i n . V I I I , On the basis of the foregoing, it is established as a matter o f l a w, t h a t n e i t h e r J o h n n i e L o r e n e A c k e r n o r t h e D e f e n d a n t s , o r a n y o n e o r m o r e o f t h e m b r e a c h e d a n y fi d u c i a r y d u t y o w i n g t o t h e Plaintiffs, and that the Defendants are entitled to receive the overriding royalty interests in question and hereinabove de scribed . WHEREFORE premises considered. Defendants pray that this Mo tion for Summary Judgment be set down for hearing and that upon a fi n a l h e a r i n g h e r e o f J u d g m e n t b e e n t e r e d d e c l a r i n g t h a t n e i t h e r J o h n n i e L o r e n e A c k e r, n o r t h e D e f e n d a n t s o r a n y o n e o r m o r e o f • ♦■h / a m hr-oar'VioH flii-f-v nwi na f'n Plaintiffs, and terest hereinabove described. Respectfully Submitted, S C H N E I D E R & M c W I L L I A M S , P. C P. O , Drawer 550 George West, Te x a s 78022 Te l e p h o n e : ( 5 1 2 ) 4 4 9 - 1 5 0 1 By: S c h n e i d e r Bar Card No. 17788000 Attorneys for Defendants C e r t i fi c a t e of Service T h e u n d e r s i g n e d h e r e b y c e r t i fi e s t h a t o n t h e / d a y o f S e p t e m b e r, 1 9 8 6 , a c o p y o f t h e f o r e g o i n g M o t i o n f o r S u m m a r y J u d g m e n t w a s t r a n s m i t t e d b y c e r t i fi e d m a i l , r e t u r n r e c e i p t r e q u e s t e d , to each of the following attorneys and/or parties of record in this cause: Mr, T. Kellis Dibrell Dibrell, Dotson, Dibrell & Dibrell 515 Busby S a n A n t o n i o , Te x a s 7 8 2 0 9 (Attorney for Julia Authelia Winslow, Bonnie Adams, Norman Akers, Martin Snowden, Mickey Snowden, Maxine Burkell, Yv o n n e C a m p o s a n d L o u i s e J . B u r t ) M r, F r e d R . C r a n b e r r y Villita Square Professional Building 11 2 Villita San Antonio, Te x a s 78205 ( A t t o r n e y f o r To m m y R a g s d a l e ) Mr, William E. Black Lynch, Chappell, Allday & Alsup 9 0 0 L i t t l e fi e l d B u i l d i n g A u s t i n , Te x a s 7 8 7 0 1 - 3 6 3 8 (Attorney for Mesa Pipeline Company) Ms. Patricia Kardell 66 Crestline Pleasanton, Te x a s 78064 M s . M a r y Va n B l a r i c u m Pleasanton, Te x a s 78064 Ms. Madalyn Brents Post O f fi c e Box 343 Pearsall, Te x a s 78061 ? ! ' : : T ' , i I ' X ' N Ta O U E f P t i K i h l * ' V i l , t f i « j u r u J f i r a l « l . o t . i n ^ y ( ' u b l l o t i i u n ( 1 f o r s a i d C o u n t y » IXJO on this rti>y poracnully uppoarod l3,A,Rimao3p>i nnJ VjirmJo /, ft/nulolph, hla wlTy, botii l?Mcv*n ta i T j i j t o l , > d t i i fl p a r a o n * ^ w l i o fl e n u n o fl u r o a u b a c r l l ' d d t o t u n l r i a i ; r i J [ r. o r i t , u n d u f t k n o w l o d t ^ o d to tm) tnut thoy oaoh dxuQutoil Iho sunny foi' ti)0 purf>oDa9 und conu^dorutlori tueroLn ^xprossod, und tiia aiild Vennla Lflfl Rundolph, wlfj of tho autd 'i.AJtuniiol^irfi^ having fcabn oxualnod by mo prlv'ly und oport fi'oni nor husband, und hnvlns ty»o aumo fi^y dxpltt'ln^d to h«r> 6h«» tha sold t Vannls nand-)lph aoknowlor^^od auoK i'^^trunant to be h^r aot und da<)d, ond doolt*rod that sha had willingly al^ad t^;a sama fnr t^io piirpones and ophaldaratlon tiioroin axpraasodi und that j aha did. not wiah to r^traot It* ^J OrVBW ' NDER MY .Ui,'D A):n SiSrtL OP OFFI'^S,., ^la / 16 day of Saptambar A.D. 1948, Wanda Ruth Rlehardaon I j Notary Public In and for Montaguo County^ ' T e x fi a * j T'^E S TAT t t OP IBXAS | 'j j COUHTV OP B3XAR X SSFORB MB, tha undaraljnad, a JJot«ry\Publlo, In and for #aid Oountyi Taxusi ^ on thla dsy paraonilly appaarad ffod Fi Moraa and Ra^a Ct Moraa, his wlfai both known to mo to ' ;j ba tha paraona vhoaa numaa.itro aubaorlbad to tha foregoing Inatrumont, und aoknowlad^jad to ma || !; that thay aaoh axaoutad tha aaina for tha porpoaaa and conaidaratlonvtharaln axpraasad^ and tha aald Rata C« Ii..traa> wlriTa If tha aald !^ad r« Uoraoi having bajn axiiminad by ma privily and «•> ' N. H part from har huaba^d, and having tha same fully axplelnod to har« aha, tha auld Rata 0« ] ' N • ■oknowladgad au^ instrument to ba har aot and daad and daolarad that aha willingly algnad tha aama for tha pwpcaoa and oonaldaretlon tharotn axpraaaad, and that aha did not wlaU to ratruot I t . OI^ll IfUDKflMY HAND AND SEAL OP OmCB, this 10 day of Saptambtir, A.D. 1046. / ' J . V. B o f f n d t (SSAL) Notary PyblLo In und for Baxar Count7« Ta x a a * I' rirST) FOR RECORD Tl(I3 I DAY OP OCTOBSn, A.D, 1940, AT 11 0*CLOCK A.M. J AND mrLY RECOnDKD THIS 1& DAY OF OCTOBEH^ A.D, 1048, AT 10 0«CI.0CK A.M. I REX c cotnm cuiSK, " D S P T I T Y. Mrj.miI.aH C O » f W T Y, TBXA3, t! t } I t I I i ) 1 t } t r 1 I /yt '' \ KTLS in. 4976 , Tt!E 3TnlB O P Ta y / . a «-:ljV ,vLJ. T. . i : 3 E PKISSSilTSi < J O U M V I f M T K T / r. l E M i J Tnat wa, Ednn ^^ua Jon^a, Jolnad i)ro formu b^ «or matand, Jlnvnlu Jonna, JJubal »«ullan c 3ooMdan, joined pre formfc by fiar imsVund, .T. 0, Snowdan, .Tull»» utittiallu ^tkarBf J'jlnad pro f^rnm 3 II by Mar iuabfind, P. i»itars, bnd Kmmott 'Iritival j^urp.iy* four of t m c ildron of J. Uurppty, dacaaaad. for and In Gonsldor»»tlon nl' tno aiim oi' 'i'en "olltira (ClO»DO). und ot »ur ^outl und vulu* ^ nbla f ona If'o rt< t Inn, tn us luaa in lund 'ulrt b,, .ToinLn I,oreny .fkui*, lo'iolpt of w ilc'l la ■i'*ruby |! ackno*lo'*:ad, hu^a '5f;/.hr7.D. S ID, /..i') ">j;\C.iD, und i-y <. pi-.nonts do nlt..:,T, unto JWmlo Lor^ina ntjkor* t'la only ot.ior c .ll<' of J, a.. ..'nr}' Dunousud, of ./uurton >>:>unty, ■ '>'r '•< • t ..Ifi.- »!i M'jil wT'ifi ''f I'll.'' ' '!•» t I ..'ii'ftj iiT 1-.t'.iil 3urv'>y I , •!< 0 mulo oj iuv^lflintQ 17''7 lasij->'l In 1), "» Mo^ora for llioo ucros, aulrt «uuls Ifo-t :u, unrt fllytl for ro :t>rd on hobruury I'J, TJOU, t»nd | recorded in V'^lumo H, 17k> of i lo D^>cid Hocot-vlo of M'^Mullon Oountyi To^ba, to *:Uch do id | record rofaranca Is hure mtida far u roll und nomplota '^oacplptlon i ^ 1 TVio Mtmdred i-nrty (240) uoraa of Ibir-lj tua aumo batr / ' ■ 'A'ont l/S of tM I'lortl'we^t 1/4 of ^Thool 3o tlnn Do, lit., mudo by vl /•.. j l I s s u e d t o h d a m a , I ' o t t y , A - M ' j u l t n o f o r 6 4 0 t i o r d t i u n d b o l n j t n u U fi n a ) l ,Uot \2b dflsflr'bftd In the deed fpom J, (£. Mupp'-^y end wife, .'Juy Marpr»> jjunuery S9, 1909, fUart for record on ''obruuri' 10, lOtO, und re-iopdn Deod Teoorda of McMuMen County, Tox..8» to w Toh dojd i,nd roi'i">rd roraipenoe le tiore mtidej and] It la ulao t^je s^mo R40 noi'aa out of 3oho.">l 3aottor\ Ilo» liJb rtacsrlbod In u purtttton da^td bet** •een J.-IS. Murpny hnd L« C« fleck dwted October Bu, 1007, filed for ruuard Junuury 25, 19C.6, »»nd rooorded In Volume .'4, Pn^e 604 of tao De«d Recorde of Mr.^ullon County, *iS)Xk8, to «hlofi detd und I record reference la nero nwdo for i» lull und oomplete des rlptlon of T ^ i e t w o a b o v e d o a c r t b e d t r u f ^ t s o f l a n d t < r a a l s o d e a ' ^ r l b e d I n u e h e r l f f ' a d e e d f r o « V, T » r i o l l a n d to J, E, Murphy, dbfced June 2, 1914, filed June !10, 10\4, and rooorded in Volume R on p> $oa 663w 564 of the Deed Pejords of iicLlullen bounty, Texua, t»nd roforence ia liore ^Iso mude to tnla deud for k dnaorlptlon of thla lend. TO KAVIJ 'l.'^r.O tne eurfuoe eattito of the above dea^rlbed premlaea, to^ettier «lth i»ll • nd slngulur the rt^^hta, horedlibtnenta, »nd yp/.^urtenbnooa t'Hireunto In uny wiae belonging, unto t h e a u l d J o h n U L c r e n e A o k e r, n e r a o p b r ^ t e I n d l v l d u u l p r o p e r t y, h e r ( t e l t a e n d u a s t g n a f o r o v e r a''n Idwedoherebybnidoursevles,ourhorsl,exesuo tra,bdcnLnalru to tra*aucaeaaora^bndyaaglna, to verrtint Hnd forever defond ftll itnd ALnjulur the aurfbco eatbto of tiM auld premlaea unto the Auld Jonnle Lorene Mker, her helra, ba.il^nl), und auocdS.Hora, b^jblnat ever^ poraon whomsoever lawfully oleLming or to nlttlm the aunu or uny r(>rt t'idroof, b>, tnrou^h, or under U% but not ilotherwlae. Provided, however, it ta exfreaoly undaratood and wjreed by oboh und mII ol' tno purtlea jjheriito triut no ptirt of tne oil, ^ua, or other mlnoruls In, on, or under tnu ^bove duairlbed land I ' ' |ttre hereby conToyodijr ttre intended or ufra'ilo^* by trilo instrument uxcept ua .lurolnufter it .vidad, 'Bnd trjA pbrtiea hereto, their roape^tive o ira und uanijna, anull continue to o«ri und i;old tn ijoommon m11 of tfie oil, jba, *(nd othar mlnori»la In, on, and under ull of ILe ir (ninorule, »»nd romovln^ trie a.^nie tnerei j|from, and none of t;ie T'oybltlea, rovers lotuiry lnt!3r>flta, or ot lyr rl^nta of auld i^rtioa under ' ,existing oil, jTiiS, and rtl"eT*'»l lounaa hmuH to nfre^tiid in fn> manner by thla itiatrumantt It I ^ i (belnfj furt ler provii^od, •'ir.w*»vor, i»nyti\lnr; in t.va foryj'.'»ln3 to t to coutrufy not* IthatbcjdJ.Mj, tnat . jitne ^^rtntee of tna aurft»ca oat- to neroln, Jonnle L>*vrone .koUor, a'Mll mvo tiio excluaive rl jnt ^J I. I ;to a*«jRuta, .Tlt'iout tiia j Indar .•)f tiny of the jruntors loriln, ot\y oil, ^tiily t a' '.or to'iaflt, tut'y 1'.) J" M* t •) 'MMtfU ' ij r y. . i r-o, t-i.*' »«'n1 I'O u " rnti.lfi* //tti t*i'> ">t 1 i ' ' iir^ m-o'.o , ^rnvtf1drt fuft'io?' t m t to ' II ji'.oii!. ni' iJv«j 1 i.h'i;d . » n.y 'J. lliirs Ct.* h •Icnr^onda oP ti^tj orlllar OC 'ox >• iutmnoru'.'J' 'vtill, j'or wutor Hfjort otT o I' Cl 0 lih-ivu »loo- •:rltod'. a'lbll (1/li) t.o Muo i>a lor noi^uruto pj-Dpij-L/|Uri/1 /dtj-luH (lA) to .U>.inlQ Loreno Ankar, iis f\Br soritr i <» i.Ipo uu ot itir witior t io anl'l of'l' of wella number one &nd.numbyr t/*o c^n 't».0 aiull y/'^ to Iilrtnu Wi»d Joiuja, bs uur aaftjruttt prnpjrty, Lnd t»»d otikir \/'>i to .^o'lnlo I/>»'ono . rl'.-ir, t»8 .M»t» oopurut© proportj, otirt t .la s iiill onntlnua so long us elt.iot* litJno .<{tie Jnnoa or Jnnr>tu Lorouo ^ck^^ live uale«»» t'lo sblrt Jouf>le fyirona nckar doeldaa to adll sbld l(«nd oa ^tiLch suL<1 walls tiro louutod otid aus h tii;,or utid sno hu6 antorbd into m contrb^t to sell srtrtio, in which evont tho suld Edna Ube Jonea shull uproLot an aprralsor and tltd suld .TorinLe Lnrona Ackor AMtiU appoint un bpptrQlsar, und tha two Mp|;rMlsarp u p p o l n t a d s n a i l I n t u r n b p p o l n t u t h i r d h p r r t i t s e r, u n d a h b l l u p p r b i a a t : » t t v u l u a o f t h e I n - . l taro^t of Edna Mtia Jonaa In aiild Mutor rLji^ts Vioi'oln reoorvad «nd i^ronted to >»rf bnd the si«Ld i J o h n l a L t r a n a A c k a r s h a l l p b y 8 < i l d C d n u M i j o J o n a s f o r t n o a p p r a l s a d v b l u e ^ u n d t n o fi n d i n g o f tli« appralaara shall ba final bnd thore shall bo no unreal tfi und whan sums la puld to j| I the Sttld Rdna Maa Jonas aha shfall qiilt-clblm all htir rljht, tltla, and Intarant In and to suld j watar rljhta herein reserved to -lar# j It la ai^reod and undamtood that on the deKth of both Sdna Mtie Jonaa and Jormla Lnreua i' Aeker the water right herein ranprvad shall tormlnata, but until the dduth of both of them .th« jlI beneflta herein set forth ahall bo binding on t^»lr holrs, exaoutorsi admlnlstrutors, and oa- algna* It la further understood and a^raod, anytninij to the aontri^ry notwlthstandlnt^i tliat Johnie Lorane neker is to nava the use of wbt(ir out of said wells and t'le ri^^ht to sell wuter H rrotB said wellSi but WMon she soils tne n»ld water sne stiall pa,, to Bdna Maa Jones^ <y ei»«h axasutud the a .ma for t!io fi'^nalrteri»t Ion t.yr^ln o',pr'-J3«^d, und the said Edna M»»e Jones, wife of the aiild Jln'ulo Jonon, .juvluj, buon j>i»:nlrttid n.o n'lvJly und opart from M^r hus'-und, bnd yxKiiMdro In vnd for U 3i*lld 5ount;>, Taxba^ | l^on Ihls db.. pararnBlly tippdnrud J, 0* onowflen (.nrl Mbhol Hullon inowdfiu^ i,Ib r-ota known | \ • I jl to m« to bo t(.o fHiroons whouo nhmas bry au scrJfjwd to tno I'nrejjnlni; Inairutr.ant, und ucknowlertg^dit j^thtoam fluod i tiuHtutiO bai' lou li»a lonhS oxto iuw ti'.oo lidn,tw i«flaai»nm Cathf^or tahu od l pJitfp.o0a,e3onob*nddano,ob invan l ld^abruotoanntQ .tur*atm jlntnooxd prabayaom dfoun pdrvll,l|f^ [jflnd ftpurt fron hor huabunrt, und hu.lng tns st.me fulVy 'I'nlnlnod to hal*, tUo auld itbbol Rnf>wdon» bnJk:ora, htivlnj boan axumlnad by me privily ond apart from her liuab nd, bnd haying the 8Mne fuHy «xpl«»lnod to rtr, aho, the abld Jultu aliM Akora, ackno«lodtj;od auoh InatrutMnt to be her Hct und daudi and ihtt d«jolurad th^t aao hud wiUlngly alined the ahtno for t a purrrtaoa and conalderut'lnn taerutn a«proaaad, und that one did not wlah to rotruot It. Given under my hwnd ^nd ao al of offloe tula t to C:7 du> of OctobHP* jv» i>* lt^4&» ( S R A F. ) Mra* iv« U. KnoC(ju tt'oUntj_ttl d a o i j I o f o f f t ' o t n l s t h e C 7 d u y o f O e t . o b a r, D > 1 9 4 a « (SS* L) Mra, <«» U. Knu^ja j \ Co^mty CloVk^ln bnd Itir rwSallo 5-;unty, T\ivai» T U T S k ' f O M - " ' j t . A . n . 3 0 4 H AT A K J ' ' " T K P » M . - r t i ( . > , 1 . I t u r. i ! ' . t i l 1 . 1 i n n - l t y, t ' l t - n d I ' l H ' L u l u l l o Mi < : . !■< f «ir A.'Mh 11 J uri'MO'irt J, '!. Jtit^viiuM un»l .'ulVuii ila wliu» ' Va l5tin*in t o m e l o ^ ^ 9 i i r n - v u s i i h n . < j r j » i i * u s i i t u ♦ . r. a ( ' n r o ; ^ » i l n ^ I t i S L r u i r. w n t , t » n ( 1 t > C l t i k . ) * l y « 1 q | , o d to md tut f.ioj at"'i or.u-Mitad .t >0 ^iiinu f'tr tho ui^ii ';onslMurbtt':n wnd t.id auld luHan. wl fri ni' t:u> si* Id J, 0, Gnowrloti, uLVlrtJ^ ^JOon.•'u vtmilnucl \)j mt» pi-Lvlly Hnd »»phrt fr'^n }>bv uuab»-nd, ««nrt hu in^ ti»o 3i.w<» Tul hdr,/ii»-«# tUo suld ilhbol wiulX^n ,<^nowtl8n, ucknnwlor*jdd oach lujit.VMrt.uiit to bn nor u'-t un^ purpflaaa and ftonatdarutlon tneroln uxprosnad^ and that aua did! not >*iah to rotraot tt« / Olvan anrtar my aand and oaal of offioa t:ila t is 1:7 du> of Ootobrtr, n* 1048* ksSAl.) ]4r5« nt U* KnagiS^ 6l^Vk' Irt and for LaSaHa bounty, Ta\«i« T f r s Ts O P T i i y, ; 3 . • '^OUVTY OF U3ALLB, t B a f o r a m a / t t i a u n d a r a l e i n a d a u t h o r i t y, ; e j « : i i ) t S r t O O t x f e j ^ V 5 t 1 " f o r L m S n I I # J o u n t y ^ O H I this da^ parnonally appanrnd I^mmatt nr^^nvol Murp^>> known to n>9 to bf tna poraon Mhr>a4 naina it 4c pcrlbad to ytha fora^otn^ lnatrumant> and aoknoNlad^^ad to ma t .at n«. ax.ioutad tha 8 ma for tb4 [purpoaas .Und oonalddratlon ti)>«rotn arpr-taaad* Olvan andar my tifcind i»nd saul. of o^Tl'i t:,\» tha 27 day of rtctobori m. D* 1048» jCJE.-1) Mro. n. U« Kna^ja Cc^Unty CXabk) in und for T^Salla Ir.unty^ Tavai« i F o n f ' s n o n o T ! { T 3 2 7 T V i . O P ' O T. A . r > . 1 0 4 H A T 4 ) * : r , \ r . K P. M . > [ » D n ' J T. Y f 5 j : n R n ' ? n S ' ' . " i ! ' - . t » D . 1 0 4 b k T S : 2 C v n . ' K P. M . ; -»»"U /il/ • c, • •«* 1 m p t J T V. r'\7 :r.5?r r i i > ! V l O n u ' ' ' i M l J ' U ( ! ' • I f k ' i r - l u « » ' * v x l i i - obi's rnri'\ t J<«n^ to us I?) n u'l I:, .'.g ol l**!! 1 .i 'luruLy uCit- n o « " l o i V, « d » iu«v« C! 0"" D, »».'>''' ' »y t.iuno irunorila •*., ; , T, urjto ZHnii M'.a Jnn98, ,th« only o» .up ^iiUri of li, Juurrij;,', ,i D»vul ''..jumI.j, laiiiSi'tia • ' l a p n o r o p i i t ® I n r t ! v l i l j i i l p r ' > r ' i j r t y, t i s r o l l i ^ w l n ; I ' t j a r. r t b o d a A t t ' t o » t o ^ o t r i e r w i t h u l 1 I m p r o v t - m a n t a ' t l i e r ' « J o n , a l t u M t a d I n M c ' . J u l l d n ' ? n u n t y, * / v » x y a , o i i h j o c t t o t l » o n d n o r i i l r u a u f v i i t I r n ' i 4 i o l n t i ( t » r ^ mantlon, afcld proparty inopo i-'oscrlbud ua I'onowB, to-wltj j jibatPMct Supvey ' ^ o r t l fl c u t o Ptitant url'jlnul k Nq» nf>> l.'o, Qpuototf ! . 54 3r>l 732 20ti A B f.- U MO 67 125 IHM n n M C40 Palng th© Btimo aupvuya No.121 iind No. Ili3 do^orltud In u ptortton da^jd h^twean J. 3* Murphy tond L, C, PlbcJ<, duted Ootober, 26, I'jO?, fllod Jbnuary «;&, IJOO, knd reoopdod Ln Vnlumd.i M, psga 504 of th® Deed Reiorda of MeMullon Jcunty, Toxbs, to which d«ad and r«cord rofarance | la haro mwda for w full itnd ooinplato deaoplptlon of tha l^nd hoptiLn ronvayad^ TO IIAVS Alio TO HOLD the aupfuoo natbto of t'.*c>party, har hairs ond ^aaljn# for^a partLaa horato thut no p(»rt of tho oil, gaa, or othar inlnar«»la In^ on, or undar tho hbova d«sorlbad landa •r« haraby oonvayad or era tntondad nr affoctad by t ila Inatrumant axcapt ita haroafter pr')Vldadli and tha partlaa horato, thalr raapaottvo halra *ind u8fli_/ns, anall contlnua to own and hold In ooiomon all of tha oil, gbs, und ^thar nitn wife of the eald E»V« Aokeri hiving been exwnlned by me privily and apart fron her husband, and having the aane fully explained to her» ahei the esld Johnle Lorene Aoker« acknowledged suoh Instru/nent to be her act and deed and the declared that ehe had wlllini^ly algned the same for the purpoees and oonslderttlon therein expreaaedf and that she did not wish to retract It* OIVEK UNDEH MY HAND AND SEAL OP OFFICE thla the 23rd day of Ootober, A.D. 1948. (SEAL) Oeo* W. Ward« Notary Public In and for Duval County^ Texas* T H S S TAT E O F T E X A S » G O U N Ty O F L e t t a l l o ( B E F O R E H E r t h e u n d e r s i g n e d a u t h c r l t y ^ c j q t a a c c w y x K a M f y g I n a n d f o r La Stile County« Texaa^ on thla day personally appeared J«Oi Snovden and Utibel Mullen Snowden hii wlfe^ both known to me to be the peraone whose nsimea are aubaorlb^d to the foregoing in- itrtmeat# and acknowledged to me that they each executed the same for the purpoaea and conaid* •mtion therein expreasidt and the aaid Mabel Mullen Snowden» wife of the aald .T.O. Snowden, having been examined by me privily and apart from her huaband, and having the same fully explained to her* she» the aeid Mabel Mullen Snowden, acknowledged euch inatrument to be her act and deed« and ahe declared that aha had willingly signed the same for the purpoaea and oo.taideratlon therein expreaaed^ and that ahe did not wish to retraot it* aiV£3( UNDER MY HAND AND 3EA. OF OFFICE thla the S7 day of Ootober^ A.D. 1946. (SEAL) Mra* A*U, Knaggi, Couaty Cli^k:_ln and for La Salle Countyp Texaa« THE STATE OF TEXAS I COUNTY OF LA SALLE I BEFORE U£, the underaigned authority, tXtOBncxxxK.t^YXiv In and for La Belle County# Texaa^ en this day personally appsared W.F. Akera and Julia Authella Akera, hla wifei both known to me to be the persona whose names are subscribed to the foregoing Instrunient, and acknowledged to ms that they each executed the sajne for the purposes and consideration therein expressed, and the aald Julia Authella Akere^ wife of the eaid W,F» Aker< having been examined by me privily and apart from her husband, and having the same fully e x p l a i n e d t o h e r, s h e * t h e s a i d J u l i a A u t h e l l a A k e r a , a a k n o w l a d g e d a u c h i n s t r u m e n t t o b e h e r B act and deed, and ahe declared that she had willln<7ly algned the same for the purposes and consideration therein expresaed, and that she did not wish to retract it. 0 I V 5 C H U N D H J l M Y ^ A N D A N D R E i C O F O P - - I C E t h l a t h e a ? d a y o f O c t o b e r A . D . l O ^ P. ( S E A L ) M r s A . t l * K n a g g ; # , C o u n t y I n a n d f o r L a S u l l e C o u n t y, Te x a n , ! THE S TAT K OF TEU5 I i: COUNTY OF Duval | PEPOHF WE, the undnrs! i?:nod authority, a Notary Public In end for Duval ' County, Texas, on this day pernonnliy apneoired Frnmott nranvel M\irphy, known to me to ho the , r«rf<^n nhnse name In suli.icrlhnd to tho rore<*oln^ h\atrument, nnd acknowledt^ed to me that he e x e c u t e d t h e s a m e f o r t h e p u r r. o s o f t n n a c o n s l d r r a t l n n t h A P o l n e x p r e s s e d . orv«l UNDKn WY MAN!) AND nriAL CF OF/ICK IhU Lho dtiy of ^otobftr, A.D. 1040. ; ( Ti I v A L ) n f « o , W, W « r d , H o t a r y l ^ u b l l o I n a n d To r 0 ! > v » < l C o u n i y » " o ; t n n , F T L F I ) F r H n F i C P H P T l t t f J " 2 7 t h D A * O F C O T O ! » K H , A . D * l O ' l f t , AT 4 : 0 0 O ' . : L 0 C K P. M . AHIi l i M LY llK';ni ijr;)) TMr;J «Mth D AY 0:"' OCTOVKtl A.'D. AT 9:00 A.M, . : V I \ VV-V\ ft 1. 1-outit.y Clerk ^ V (J —. P f t p > i t y. 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