ACCEPTED 04-15-00066-CV FOURTH COURT OF APPEALS SAN ANTONIO, TEXAS 2/10/2015 1:57:24 PM KEITH HOTTLE CLERK 04-15-00066-CV No. _______________ In the Court of Appeals 4th COURT FILED IN OF APPEALS SAN ANTONIO, TEXAS for the Fourth Judicial District of Texas 02/10/2015 1:57:24 PM San Antonio, Texas KEITH E. HOTTLE Clerk CONOCOPHILLIPS COMPANY, Petitioner, V. VAQUILLAS UNPROVEN MINERALS, LTD., Respondent. From Cause No. 2014 CVQ000 438 D4 406th Judicial District Court, Webb County, Texas Honorable Oscar J. Hale, Jr., Presiding Judge Unopposed Petition for Permission to Appeal Adolfo Campero Michael V. Powell State Bar No. 00793454 State Bar No. 16204400 Email: acampero@camperolaw.com Email: mpowell@lockelord.com Campero & Associates, P.C. Cynthia K. Timms 315 Calle Del Norte, Suite 207 State Bar No. 11161450 Laredo, Texas 78041 Email: ctimms@lockelord.com Tel: 956-796-0330 Elizabeth L. Tiblets Fax: 956-796-0399 State Bar No. 24066194 Email: etiblets@lockelord.com Locke Lord LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201-6776 Tel: 214-740-8520 Fax: 214-740-8800 ATTORNEYS FOR PETITIONER CONOCOPHILLIPS COMPANY IDENTITY OF PARTIES AND COUNSEL Petitioner: Counsel for Petitioners: ConocoPhillips Company Michael V. Powell State Bar No. 16204400 Email: mpowell@lockelord.com Cynthia K. Timms State Bar No. 11161450 Email: ctimms@lockelord.com Elizabeth L. Tiblets State Bar No. 24066194 Email: etiblets@lockelord.com Locke Lord LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201-6776 Tel: 214-740-8520 Fax: 214-740-8800 Adolfo Campero State Bar No. 00793454 Email: acampero@camperolaw.com Campero & Associates, P.C. 315 Calle Del Norte, Suite 207 Laredo, Texas 78041 Tel: 956-796-0330 Fax: 956-796-0399 Respondent: Counsel for Respondent: Vaquillas Unproven Minerals, Ltd. Gregg Owens State Bar No. 15383500 Email: gregg.owens@haysowens.com Robert G. Hargrove State Bar No. 09303300 Email: rob.hargrove@haysowens.com Hays & Owens L.L.P. 807 Brazos Street, Suite 500 Austin, Texas 78701 Tel: 512-472-3993 Fax: 512-472-3883 i A. Michael Jung State Bar No. 11054600 Email: michael.jung@strasburger.com Strasburger & Price, LLP 901 Main Street, Suite 4400 Dallas, Texas 75202-3794 Tel: 214-651-4724 Fax: 214-651-4330 (main) Fax: 214-659-4022 (direct) Armando X. Lopez State Bar No. 12562400 Email: mandox@rio.bravo.net Law Offices of Armando X. Lopez 1510 Calle Del Norte, Suite 16 Laredo, Texas 78041 Tel: 956-726-0722 Fax: 956-726-6049 Raul Leal State Bar No. 24032657 Email: rleal@rl-lawfirm.com Raul Leal Incorporated 5810 San Bernardo, Suite 390 Laredo, Texas 78041 Tel: 956-727-0039 Fax: 956-727-0369 ii TABLE OF CONTENTS Page IDENTITY OF PARTIES AND COUNSEL .............................................................i TABLE OF CONTENTS ......................................................................................... iii INDEX OF AUTHORITIES......................................................................................v INFORMATION REQUIRED BY TEXAS RULE OF APPELLATE PROCEDURE 25.1(d) ................................................vi STATEMENT OF THE CASE ............................................................................... vii ISSUE PRESENTED ............................................................................................. viii STATEMENT OF FACTS ........................................................................................1 A. The Two Leases Contain Retained Acreage Clauses............................ 1 B. The Railroad Commission Adopted Field Rules. ................................. 3 C. This Action. ...........................................................................................4 ARGUMENT AND AUTHORITIES ........................................................................ 5 A. The proper interpretation of the leases is a “controlling question of law.”....................................................................................5 B. There is a substantial ground for a difference of opinion. .................... 7 C. An immediate appeal from the Amended Order may materially advance the ultimate termination of the litigation.................................................................................................8 PRAYER ....................................................................................................................9 CERTIFICATE OF CONFERENCE.......................................................................11 CERTIFICATE OF COMPLIANCE .......................................................................11 CERTIFICATE OF SERVICE ................................................................................12 iii APPENDIX: Amended Order On Cross-Motions For Summary Judgment ..........................TAB 1 Defendant's Motion For Summary Judgment ...................................................TAB 2 Plaintiff's Cross-Motion For Partial Summary Judgment And Response To Defendant's Motion For Summary Judgment ........................TAB 3 Plaintiff's Original Petition ...............................................................................TAB 4 iv INDEX OF AUTHORITIES Page(s) CASES Johnson v. Burken, 930 F.2d 1202 (7th Cir. 1991) .............................................................................. 6 Jones v. Killingsworth, 403 S.W.2d 325 (Tex. 1965) ................................................................................ 7 RULES AND STATUTES 28 U.S.C. § 1292(b) ...................................................................................................5 TEX. CIV. PRAC. & REM. CODE § 51.014(Vernon Supp. 2014).................. vi, vii, 5, 6 Tex. R. of App. P. 25.1 .............................................................................................vi Tex. R. of App. P. 28.3 .............................................................................................vi Tex. R. of App. P. 28.4 ........................................................................................... vii LAW REVIEWS AND TREATISES 16 Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice & Procedure § 3930 (3d ed. 2012) .......................................................................6, 7 19 James Wm. Moore, Moore’s Federal Practice & Procedure §203.31[3] (3d ed. 2014) .........................................................................................................8 v TO THE HONORABLE COURT OF APPEALS: ConocoPhillips Company (“ConocoPhillips”), Defendant below, files this Unopposed Petition for Permission to Appeal regarding an order signed on January 27, 2015 on the parties’ cross-motions for summary judgment. Because the underlying lawsuit was filed after September 1, 2011, this appeal is governed by the 2011 amended version of Section 51.014(d)-(f) of the Texas Civil Practice and Remedies Code and by Rule 28.3 of the Texas Rules of Appellate Procedure. Respondent Vaquillas Unproven Minerals, Ltd. (“Vaquillas”), Plaintiff below, did not oppose Petitioners’ Motion for Interlocutory Appeal filed in the district court and has agreed to the relief requested in this Petition. INFORMATION REQUIRED BY TEXAS RULE OF APPELLATE PROCEDURE 25.1(d) In accordance with Texas Rule of Appellate Procedure 28.3(e)(1), Petitioners provide the following information required by Texas Rule of Appellate Procedure 25.1(d): (1) Trial court, style, and case number: • 406th Judicial District Court, Webb County, Texas, • Vaquillas Unproven Minerals, Ltd., Plaintiff v. ConocoPhillips Company, Defendant • Case Number: 2014 CVQ000 438 D4. vi (2) ConocoPhillips Company desires to appeal the Amended Order on Motions for Summary Judgment signed by the district court on January 27, 2015. That Amended Order is attached at Tab 1. (3) This appeal is taken to the Court of Appeals for the Fourth Judicial District, San Antonio, Texas. (4) This Petition for Permission to Appeal is filed by ConocoPhillips Company. (5) This Petition is filed in accordance with Texas Civil Practice & Remedies Code § 51.014(d) & (f) (Vernon Supp. 2014). If the Court accepts this appeal, it will be accelerated and governed by Texas Rules of Appellate Procedure for pursuing an accelerated appeal. See TEX. CIV. PRAC. & REM. CODE § 51.014(f) (Vernon Supp. 2014). This is not a parental termination or child protection case, as defined in Texas Rule of Appellate Procedure 28.4. STATEMENT OF THE CASE Plaintiff Vaquillas is the lessor on two oil, gas, and mineral leases with ConocoPhillips. One of the leases encompasses 26,622.79 acres and the other includes 6,740 acres, both in Webb County. Both leases contain a retained acreage clause, which the parties interpret differently. The leases provide the lessee (ConocoPhillips) may retain at least 640 acres for each producing or shut-in gas well, but Vaquillas argues the Railroad Commission’s Field Rules apply under the leases to limit the retained acreage to 40-acre units for each gas well. Vaquillas vii claims that ConocoPhillips must release 15,351 acres in addition to the nearly 9,700 acres it has already released so that ConocoPhillips would be retaining 8,320 acres out of the original 33,362.79. The parties’ dispute turns on the proper interpretation of the retained acreage clause in connection with the Field Rules adopted by the Railroad Commission for the particular field included in the leases. Vaquillas argues the Field Rules dictate that the retained acreage for each well (all of which are gas wells) is only 40 acres per well. ConocoPhillips argues that the Field Rules do not alter the lease’s provision that the retained acreage is 640 acres per well. No material fact necessary to address the legal questions is disputed. The district court, on cross motions for summary judgment, held that Vaquillas’ proposed lease interpretation was correct. At the same time, the district court ruled that ConocoPhillips’ lease interpretation was incorrect. ISSUE PRESENTED The issue in this case is “what is the proper interpretation of the leases’ retained acreage clause?” More specifically, the question is whether the leases’ retained acreage clause permits ConocoPhillips to retain only 40 acres per each producing or shut-in gas well it has drilled on the two leases or whether ConocoPhillips is allowed to retain 640 acres for each of those same gas wells. viii STATEMENT OF FACTS Vaquillas alleged that ConocoPhillips breached the leases by failing to release additional acreage under the retained acreage clause. The basic, undisputed facts on which the district court ruled are summarized as follows: A. The Two Leases Contain Retained Acreage Clauses. This case involves two oil, gas, and mineral leases on which Vaquillas is the lessor and ConocoPhillips is the lessee. The first lease includes 26,622.79 acres (the “26,000-acre lease”) and the second lease covers 6,740 acres (the “6,700-acre lease”). Defendant ConocoPhillips’ Motion for Summary Judgment (“D’s MSJ”), Tab 2, Exhibits A & B. As lessee under these two leases, ConocoPhillips drilled 208 gas wells prior to the time it ended its continuous program. Id. Exhibits C & D; Plaintiff Vaquillas’ Cross-Motion for Partial Summary Judgment and Response to Defendant’s Motion for Summary Judgment (“P’s MSJ”), Tab 3, at 4. The two leases contain retained acreage clauses, both of which read essentially identically: 1 On November 1, 1990, Lessee covenants and agrees to execute and deliver to Lessor a written release of any and all portions of this lease which have not been drilled to a density of at least 40 acres for each producing oil well and 640 acres for each producing or shut-in gas well, except that in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this lease 1 This quotation is from the 26,000-acre lease. D’s MSJ, Tab 2, Exhibit A, ¶ 18 The only difference between this language in the two leases is that the second lease, the 6,700-acre Lease, starts with: “At the end of the primary term hereof, Lessee covenants and agrees . . . .” D’s MSJ, Tab 2, Exhibit B, ¶ 18. 1 provides for a spacing or proration establishing different units of acreage per well, then such established different units shall be held under this lease by such production, in lieu of the 40 and 640-acre units above mentioned. There is no dispute that ConocoPhillips conducted a continuous drilling program and that the 90 days following the end of that program occurred no later than June 30, 2012.2 Plaintiff’s Original Petition, Tab 4, ¶ 11; D’s MSJ, Tab 2, at 3. The expiration of the 90 days triggered the retained acreage clause. ConocoPhillips released acreage in accordance with its interpretation of the retained acreage provision. ConocoPhillips retained 23,671.63 acres, having released 9,691.16 acres. P’s MSJ, Tab 3, at 6. Vaquillas asserts that ConocoPhillips should have released all but 8,320 acres, claiming that ConocoPhillips has retained 15,351.63 acres that also should be released. Id. The parties’ differing interpretation of the retained acreage clause lies at the heart of the parties’ contradictory positions in this case. 2 The retained acreage clause provides a time for releasing acreage: “provided, however, that if at such date lessee is engaged in drilling or reworking operations the date for the execution and delivery of such release shall be postponed and the entire lease shall remain in force so long as operations on said well or wells are prosecuted with reasonable diligence, and if, after the completion or abandonment of any such well Lessee commences the drilling of an additional well within Ninety (90) days from the completion or abandonment of the preceding well, or continuously conducts drilling operations in good faith and with reasonable diligence on said lease without any cessation for longer than Ninety (90) days, said lease shall remain in full force and effect during such drilling operations and until the end of Ninety (90) days after the completion or abandonment of the final well, at which time Lessee shall execute and deliver to Lessor said written release, releasing all portions of the lease not then so developed.” D’s MSJ, Tab 2, Exhibit A, ¶ 18. 2 B. The Railroad Commission Adopted Field Rules. The explanation for the differing interpretations of the retained acreage clause arises out of the Railroad Commission’s adoption of Field Rules for this field. Those Field Rules provide: RULE 2: No well shall hereafter be drilled nearer than FOUR HUNDRED SIXTY SEVEN (467) feet to any property line, lease line or subdivision line and no well shall be drilled nearer than ONE THOUSAND TWO HUNDRED (1,200) feet to any applied for, permitted or completed well in the same reservoir on the same lease, pooled unit or unitized tract. Provided, however, there is no minimum between-well spacing requirement between a well being permitted at least 660 feet from the nearest property line, lease line or subdivision line, and the other wells permitted, drilled or completed on the same lease, pooled unit or unitized tract. A well being permitted at a distance less than SIX HUNDRED SIXTY (660) feet from the nearest property line, lease line or subdivision line must be a minimum of ONE THOUSAND TWO HUNDRED (1,200) feet from any applied for, permitted or completed well in the same reservoir on the same lease, pooled unit or unitized tract, or an exception to Rule 37 must be obtained. The aforementioned distances in the above rule are minimum distances to allow an operator flexibility in locating a well, and the above spacing rule and the other rules to follow are for the purpose of permitting only one well to each drilling and proration unit. Provided however, that the Commission will grant exceptions to permit drilling within shorter distances and drilling more wells than herein prescribed whenever the Commission shall have determined that such exceptions are necessary either to prevent waste or to prevent the confiscation of property. When exception to these rules is desired, application therefore shall be filed and will be acted upon in accordance with the provisions of Commission Statewide Rule 37 and 38, which applicable provisions of said rule are incorporated herein by reference. Provided however, that persons who are presumed to be affected by a request for an exception to the between-well spacing requirement 3 shall be limited to the operators and owners/lessees of tracts, lease or units within one mile or less of the proposed well. Final Order Amending Field Rules For The Vaquillas Ranch (Lobo Cons.) Field Webb County Texas (amended November 2, 2010), D’s MSJ, Tab 2, at Tab 2. These Field Rules are the source of the parties’ disagreement. Vaquillas contends the Field Rules triggered the exception to the parties’ basic agreement, which would otherwise allow ConocoPhillips to retain 640 acres for gas wells. Plaintiff’s Original Petition, Tab 4, ¶¶ 13-14. Vaquillas contends the Field Rules “established different units of acreage per well,”—specifically, only 40-acre units for gas wells. See Id. ¶¶ 14, 17, 18, 19. C. This Action. Vaquillas filed this action in March, 2014. ConocoPhillips moved for summary judgment on the entire case and Vaquillas cross-moved for partial summary judgment on liability. On November 25, 2014, the district court initially granted Vaquillas’ motion for partial summary judgment and denied ConocoPhillips’ motion for summary judgment on the entire case. Subsequently, however, the district court amended its order to grant the parties permission to file an interlocutory appeal. That Amended Order, attached as Tab 1, was signed on January 27, 2015. 4 ARGUMENT AND AUTHORITIES A party may take an interlocutory appeal under section 51.014(d), if the order to be appealed involves a controlling question of law as to which there is a substantial ground for difference of opinion, and an immediate appeal may materially advance the ultimate termination of the litigation. TEX. CIV. PRAC. & REM. CODE § 51.014(d)(1) & (2). The district court properly certified the order that is the subject of this Petition for interlocutory appeal under section 51.014(d). Case law construing section 51.014(d) is limited. The requirements for certifying an interlocutory appeal under section 51.014(d), however, are substantially identical to those under the federal rule permitting interlocutory appeals – 28 U.S.C. § 1292(b) – thus, case law interpreting section 1292(b) is instructive. A. The proper interpretation of the leases is a “controlling question of law.” First, the parties agree that the interpretation of the oil, gas, and mineral leases at issue involves a pure question of law. Neither party has pleaded or argued that the provisions are ambiguous. Second, there can be no doubt that the construction of the retained acreage provision is a controlling question of law in this case within the meaning of section 51.014(d)(1). It is the question on which the case turns. If ConocoPhillips is right, judgment should be rendered against Vaquillas. If Vaquillas’ interpretation is 5 correct, ConocoPhillips will have to release many thousands of additional mineral acres. Texas courts have not attempted to give the word “controlling” a precise definition in section 51.014(d). However, there is no reason to conclude the word has anything other than its usual meaning. ‘“Controlling’ means serious to the conduct of the litigation, either practically or legally.” Johnson v. Burken, 930 F.2d 1202, 1206 (7th Cir. 1991) (internal citations omitted). “There is no doubt that a question is ‘controlling’ if its incorrect disposition would require reversal of a final judgment, either for further proceedings or for a dismissal that might have been ordered without the ensuing district-court proceedings.” 16 Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice & Procedure (“Wright & Miller”) § 3930 at 496 (3d ed. 2012). In this case, if the district court were to enter judgment based on an erroneous interpretation of the retained acreage provision, reversal would be required. Accordingly, determination of the proper legal interpretation of the retained acreage provision is a “controlling question of law.” Further, a question of law is “controlling” if its resolution could determine the outcome or future course of the litigation. See Johnson, 930 F.2d at 1206. Questions also are controlling if “interlocutory reversal might save time for the district court, and time and expense for the litigants.” Id.; see also Wright & Miller § 3930 at 499. Here, an interlocutory appeal of the decisive issue before 6 this Court would allow either a final decision of this case or allow the case to go forward in a manner that will not generate a new set of title issues between the parties. The district court properly concluded the issues determined in the Amended Order present a controlling question of law. B. There is a substantial ground for a difference of opinion. There is little direct legal guidance concerning the proper interpretation of the retained acreage clause in the context of its language and the particular Railroad Commission Field Rules. Both parties cite to the Texas Supreme Court’s opinion in Jones v. Killingsworth, 403 S.W.2d 325 (Tex. 1965), and both sides claim the case supports their side of the argument. That case drew differences between the words “permitted” and “prescribed” as used in the Railroad Commission Field Rules and in the leases at issue. Here, the issue is whether the Railroad Commission’s Field Rules “established” units for gas wells of a different size than 640 acres. ConocoPhillips advocated that the Field Rules merely permitted the creation of gas units of fewer than 640 acres. Hence, it argued the Field Rules allow operators to drill wells on a minimum of 40 acres, but the rules did not “establish” 40 acre units. Vaquillas, on the other hand, emphasizes a different portion of the retained acreage clause. It argued the clause allowed for the Field Rules to “establish” units of a different size 7 through the spacing provisions, and that the particular Field Rules established 40- acre units through its spacing provisions. The answer to the issue presented requires a careful analysis of the lease language vis-à-vis the particular words used in the Field Rules. Accordingly, there is substantial ground for a difference of opinion, as determined by the district court. C. An immediate appeal from the Amended Order may materially advance the ultimate termination of the litigation. Determination of whether a legal issue is “controlling” goes hand-in-hand with the question whether an interlocutory appeal of an order deciding that issue “may advance the ultimate termination of the litigation.” 19 James Wm. Moore, Moore’s Federal Practice & Procedure §203.31[3] at 203-120 (3d ed. 2014). An immediate appeal of the district court’s Amended order will materially advance the ultimate termination of this litigation. The question how to interpret the retained acreage provision is the liability issue in this case. However, unlike many cases where damages can be easily tried, that is not true in this case. We can start with the relief Vaquillas is seeking. Vaquillas is requesting that ConocoPhillips release over 15,000 additional mineral acres to Vaquillas, which Vaquillas would then be free to develop or to lease to a third party oil and gas producer. This will create chaos if a judgment in Vaquillas favor is reversed on appeal. Further, even an assessment of damages will prove to be complicated. At 8 issue are tracts of land scattered throughout a field in which damages, if any, would have to be assessed in accordance with, among other things, those tracts’ size and location. It is a far better approach to finally determine the liability issue before embarking on implementing remedies that are complicated and difficult to unwind. PRAYER ConocoPhillips Company requests the Court to grant permission to take an interlocutory appeal of the district court’s Amended Order granting summary judgment for Respondent and denying the summary judgment filed by Petitioner ConocoPhillips, and for such other relief as they may show themselves entitled. 9 Respectfully submitted, LOCKE LORD LLP /s/ Michael V. Powell Michael V. Powell State Bar No. 16204400 Email: mpowell@lockelord.com Cynthia K. Timms State Bar No. 11161450 Email: ctimms@lockelord.com Elizabeth L. Tiblets State Bar No. 24066194 Email: etiblets@lockelord.com Locke Lord LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201-6776 Tel: 214-740-8520 Fax: 214-740-8800 Adolfo Campero State Bar No. 00793454 Email: acampero@camperolaw.com Campero & Associates, P.C. 315 Calle Del Norte, Suite 207 Laredo, Texas 78041 Tel: 956-796-0330 Fax: 956-796-0399 ATTORNEYS FOR PETITIONER CONOCOPHILLIPS COMPANY 10 CERTIFICATE OF CONFERENCE I hereby certify that on February 8, 2015, counsel for ConocoPhillips conferred with Mr. Michael Jung, counsel for plaintiff / respondent Vaquillas in this case, regarding this Petition. Mr. Jung stated that Vaquillas does not oppose this Petition for Permission to Appeal and has agreed to the relief requested in this Petition. /s/ Michael V. Powell Michael V. Powell CERTIFICATE OF COMPLIANCE Pursuant to Texas Rule of Appellate Procedure 9.4(i)(3), as amended effective December 1, 2012, the undersigned certifies that this Petition complies with the length limitations of Rule 28.3(g) (which the undersigned understands now to be stated in Rule 9.4(i)) and the typeface requirements of Rule 9.4(e). 1. Exclusive of the contents excluded by Rule 9.4(i)(1), this Brief contains 2,221 words as counted by the Word Count function (including textboxes, footnotes, and endnotes) of Microsoft Office Word 2010. 2. This Brief has been prepared in proportionally spaced typeface using: Software Name and Version: Microsoft Office Word 2010 Typeface Name: Times New Roman Font Size: 14 point /s/ Michael V. Powell Michael V. Powell 11 CERTIFICATE OF SERVICE I hereby certify that on the 10th day of February 2015, a true and correct copy of Agreed Petition for Permission to Appeal, with Exhibits, was served by File&ServeXpress and/or pdf or Certified Mail, Return Receipt Requested on Respondent through its counsel of record listed below: Gregg Owens Raul Leal Email: gregg.owens@haysowens.com State Bar No. 24032657 Robert G. Hargrove Email: rleal@rl-lawfirm.com Email: rob.hargrove@haysowens.com Raul Leal Incorporated Hays & Owens L.L.P. 5810 San Bernardo, Suite 390 807 Brazos Street, Suite 500 Laredo, Texas 78041 Austin, Texas 78701 Tel: 956-727-0039 Tel: 512.472.3993 Fax: 956-727-0369 Fax: 512.472.3883 A. Michael Jung Armando X. Lopez State Bar No. 11054600 State Bar No. 12562400 Email: michael.jung@strasburger.com Email: mandox@rio.bravo.net Strasburger & Price, LLP Law Offices of Armando X. Lopez 901 Main Street, Suite 4400 1510 Calle Del Norte, Suite 16 Dallas, Texas 75202-3794 Laredo, Texas 78041 Tel: 214-651-4724 Tel: 956-726-0722 Fax: 214-651-4330 (main) Fax: 956-726-6049 Fax: 214-659-4022 (direct) Counsel for Vaquillas Unproven Minerals, Ltd. /s/ Michael V. Powell Michael V. Powell 12 No. _______________ In the Court of Appeals for the Fourth Judicial District of Texas San Antonio, Texas CONOCOPHILLIPS COMPANY, Petitioner, V. VAQUILLAS UNPROVEN MINERALS, LTD., Respondent. From Cause No. 2014 CVQ000 438 D4 406th Judicial District Court, Webb County, Texas Honorable Oscar J. Hale, Jr., Presiding Judge Appendix Amended Order On Cross-Motions For Summary Judgment ..........................TAB 1 Defendant's Motion For Summary Judgment ...................................................TAB 2 Plaintiff's Cross-Motion For Partial Summary Judgment And Response To Defendant’s Motion For Summary Judgment .......................TAB 3 Plaintiff’s Original Petition ...............................................................................TAB 4 13 Tab 1 01-28-15;13:59 ;From:406th Distr i ct Court lo:8111 4 / 4UbbUU ,~OOOLJOUI ~ tt L I U ... CAUSE NO. 2014CVQ000438 D4 VAQUILLAS UNPROVEN MINERALS, § IN THE DISTRICT COURT LTD, § § Plaintiff, § § v. § WEBB COUNTY, TEXAS 1 "-.· ... ·' CONOCOPBILLI:PS COMPANYt § § ,.~ § ~ ,. Defendant. § 406'l'u JUDICIAL DISTRICT AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT On October 30, 2014, Defendant's Motion for Summary Judgment and Plaintiffs Cross- Motion for Partial Summary Judgment were heard. The Court, having reviewed the motion, ·' briefs, responses, competent swnruary judgment evidence, and argument of counsel, rules on these motions as follows, IT IS ORDERED, ADJUDGED, AND DECREED that Defendant's Motion for Summary Judgment is DENIED. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Plaintiffs Cross- Motion for Partial Summary Judgment is GRANTED. The Court DECLARES that Defendant has breached the 26,622.79-acre Lease and the 6,740-acre Lease by failing to release all acreage in excess of 40 acres for each producing and shut-in natural gas well capable of producing in paying quantities. This Order of the Court decides the central question in this case, which is the number of j :....~ ·.; acres under two oil and gas leases that Defendant ConocoPhillips Company retains under the "retained acreage" clauses of the leases at the conclusion of ConocoPhillips' continuous drilling operations. The Court finds that the question decided by this order is a controlling question of ;j AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY .JUDGMENT PAGEl ---··- ~·-~-------- ····--···· -·--·-···· ···-··"·-·------~------~·---- 01-28-15; 13:59 ;From:406th Dist r ict Court To:912 14740BBOO ;9565235074 # 31 6 -'-•n•• •4.oO ........ ~·•• ·--•-""""OIO" .._•_ •• ·-· o' I IT 1" , 1 - • ' "t · ~· o'r .... --:..:,_~ --:0• ' "1••"-..ll - - 'l ·j law as to which there is a substantial ground for difference of opinion. The Court also finds that immediate appeal of the order will materially advance the ultimate termination of this litigation. This Court's Order, and the underlying controlling question of law, involve the parties' :i competing legal interpretations of the language of the "retained ac.reage'' clauses and certain Field Rules adopted by the Railroad Commission of Texas. Although the Court has ruled in .,;,• favor of the Plaintiff lessor, Vaquillas Unproven Minerals, Ltd., the Court concludes there are '"· I substantial grounds for difference of opinion regarding whether the leases allow ConocoPhillips ~ I to retain 40 acres per well, as Plaintiff contends, or 640 acres, as ConocoPhillips contends. An immediate appeal from this Court's Order will materially advance the final conclusion of litigation. Plaintiff seeks judgment ordering ConocoPhillips to cx.ecute releases of over 15,000 acres described in the leases, as well as possible direct and consequential damages flowing from ConocoPhillips' alleged breach of the utetained acreage" clauses of the leases. If ConocoPhillips is forced to release the acreage but later wins an appeal determining that ConocoPhillips' original interpretation is correct, significant problems could develop. On the other hand, the lessor, Vaquillas Unproven Minerals, Ltd. is interested in having the release of acreage as soon as possible. Furthermore, the Court and the parties anticjpate that a determination of Plaintiff's damages, if any, will be costly and time~consuming. .. '...· ConocoPhillips desires to take an interlocutory appeal. The Court rules that such appeal shall be defined by the lease interpretation question addressed in the parties' cross-motions for :.1 summary judgment. More specifically, the question is whether the leases' retained acreage clause allows ConocoPhillips Company to retain only 40 acres per each producing or shut-in gas well it has drilled on the two leases, or whether ConocoPhillips is allowed to retain 640 acres (plus 10% tolerance) for each wells. " AMENDED ORDER ON CROSS...MOTIONS FOR SUMMARY .JUDGMENT PAGE2 1.! 01-28-15;13:59 ;From:406th District Court To:912 14740S800 ;9565235074 # 4/ I] .. ., ..... =--·.·· ~ ••. ·---_._i.--·--···· ....--....... L.. --··· ---~ ·~ ... •'• __: _ _ •' - - - · - . ·~ ·' ., ... ~~ IT IS HEREBY ORDERED that, pursuant to Texas Civil Practice & Remedies Code § Sl.014(d) (West. Supp. 2014) an interlocutory appeal is ALLOWED from this Order. ; .~ ·' IT IS FURTllER ORDERED that trial of this action is stayed pending the interlocutory :I appeal. The Court's Pre-Trial Guideline Order and Scheduling Order arc hereby VACATED. :j The parties may proceed with discovery and pretrial proceedings by agreement or with leave of Court. .;·-· ~j q SIGNED1his_2Zf-dayof7-===-t ,2015. .. ,, ( lr- Hon~Oscar J. Hale, Jr. ~ -~ ' Judge Presiding ;< .• :11 ,. .J !'! :1 :I :~ .I ' AMENDED ORDER ON CROSS-MOTXONS FOR SUMMARY JtlDGMENT PAGE3 u 01- 28-1 5; 13 :59 ;Fr om :406th Dist ric t Cour t lo:81214 /4UddUU ; ~000L j ou 1~ w ~' ..... -··-· . . -· . . . ... ____..-............ __..... . - ·-~· .··.·-~~"- '!oil.--- ..-..::.. "...1 .:• ..: • • • • • • •• ~· · ---~ ~·-- .. - · - · ·· - -- ..... ........ ----> _.. ._ APPROVED AS TO FORM: ~~·~~ Micfu\CIViPowell State Bar No. 16204400 Email: mpowell@lockelord.com Elizabeth L. Tiblets . ~ State Bar No. 24066194 ..", ~ Email: etib1ets@lockelord.com ·! LOCKE LORD LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201~6776 Tel: 214-740-8520 Fax: 214-740-8800 Adolfo Cam.pero State Bar No. 00793454 Email: acampero@camperolaw.com CAMPERO & ASSOCIATES, P.C. 315 Calle Del Norte, Suite 207 Laredo, Texas 78041 Tel: 956-796-0330 Fax:956~796-0399 ATTORNEYS FOR DEFENDANT CONOCOPHILLIPS COMPANY :j AMENDED ORDER ON CROSS-MOTlONS FOR SUMMARY JUDGMENT PAGE4 - - -- - - - - - - - -······-- ..·- - ··- ____________________ ., To:912147408800 ;9565235074 tt bl 0 01 - 28- 15; 13 :59 ;From:406th District Court .. .. ··· -- ~·- ......_ - - -- APPROVED AS TO FORM: /s/ P. Michael Jung P. Michael Jung State Bar No. 11054600 Email: micllaeLjung@strasburger.com STRASBURGER. & PRICE, LLP 901 Main Street, Suite 4400 Dallas, Texas 75202-3794 ..• Tel: 214-651-4724 )! Fax: 214-651-4330 (main) ·.• Fax~ 214-659-4022 (direct) J :l Gregg Owens ..· State Bar No. 15383500 Email: gregg.owens@haysowens.com Robert 0 . Hargrove · State Bar No. 09303300 Email: rob.hargrove@haysowens.com H AYS & OWENS L.L.P. 807 BJ:"azos Street, Suite 500 Austin, Texas 78701 Tel: 512-472-3993 Fax: 512~472<3883 Annando X. Lopez State Bar No. 12562400 Email: mandox@rio.bravo.net LAW OFFICES OF ARMANDO X. LOPEZ 1510 Calle Del Norte, Suite 16 Lw:edo, Texas 78041 Tel: 956-726-0722 Fax: 956-726-6049 •·. ...,. ·i Raul Leal !°! State Bar No. 24032657 .~ Email: rleal@rl-lawfirm.com RAUL LEAL lNCOR.PORATEP 5810 San Bernardo, Suite 390 Laredo, Texas 78041 Tel: 956~727-0039 ,, Fax; 956-727r0369 ATTORNEYS FOR VAQUILLAS UNPROVEN MINERALS, LTD. AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT PAGES Tab 2 Filed 7/30/2014 12:03:15 PM Esther Degollado District Clerk Webb District 2014CVQ000438 D4 Although all of the language in the Leases is important, 1 Vaquillas bases all of its claims in this lawsuit on the following language from Paragraph 18 of both Leases. 2 (ConocoPhillips will indent and number the sentences and separate phrases quoted from Paragraph 18 in order to facilitate later discussion of them.)3 Sentence (1): On November 1, 1990, Lessee covenants and agrees to execute and deliver to Lessor a written release of any and all portions of this lease which have not been drilled to a density of at least 40 acres for each producing oil well and 640 acres for each producing or shut-in gas well, Sentence (2): except that in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this lease provides for a spacing or proration establishing different units of acreage per well, then such established different acreages shall be held under this lease by such production, in lieu of the 40 and 640-acre units above mentioned; Sentence (3): provided, however, that if at such date lessee is engaged in drilling or reworking operations the date for the date for execution and delivery of such release shall be postponed and the entire lease shall remain in force so long 1 When interpreting an oil and gas lease, the Court must "examine the entire document and consider each part with every other part so that the effect and meaning of one part on any other part may be determined." Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118, 121 (Tex. 1996). 2 Each of the alleged causes of action in Plaintiffs Original Petition is based on Vaquillas' erroneous interpretation of Paragraph 18. See Plaintiffs Original Petition '11'11 17-20. This Motion for Summary Judgment explains why Vaquillas' interpretation is wrong as a matter of law. Consequently, this motion seeks summary judgment on the entire case. 3 This quotation is from the "26,622. 79 Acre Lease," as described in Paragraph 8 of Vaquillas' Petition. The only difference between this language in the two Leases is that the second lease, the "6,740 Acre Lease" described by Vaquillas starts with: "At the end of the primary term, Lessee covenants and agrees .... " DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE2 as operations on said well or wells are prosecuted with reasonable diligence, and if, after the completion or abandonment of any such well Lessee commences the drilling of an additional well within Ninety (90) days from the completion or the abandonment of the preceding well, or continuously conducts drilling operations in good faith and with reasonable diligence on said lease without any cessation for longer than Ninety (90) days, said lease shall remain in full force and effect during such drilling operations and until the end of Ninety (90) days after the completion or abandonment of the final well, at which time Lessee shall execute and deliver to Lessor said written release, releasing all portions of the lease not then so developed. Sentence (4): Each retained unit shall contain at least one (1) well producing or capable of producing oil or gas in paying quantities, and the acreage within a unit shall be contiguous. See Petition 'if'il 11, 13; Huebner Declaration, Exhs. A & B (emphasis added). The wells on the Leases produce gas, so the relevant "development" obligation and the retained acreage size to which the parties agreed in Sentence (1 ), quoted above, is 640 acres. There is no dispute between the parties that ConocoPhillips maintained the 26,622.79 Acre Lease in full force and effect for many years after November 1, 1990, and the 6,740 Acre Lease in full force and effect for many years after its primary term by continuous drilling. There is no dispute that ConocoPhillips' continuous drilling operations ended at or about the time Vaquillas states in Paragraph 11 of its Original Petition. Due to the end of continuous drilling operations, COPC filed the Releases of Acreage that it believed were due to Vaquillas as stated in the final phrase of Sentence (3) and in Sentence (4), copies of which are attached as Exhibits C and D to the DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE3 Huebner Declaration, filed herewith. ConocoPhillips' Releases of Acreage retained 640-acre units around producing gas wells, as agreed in Sentence (I). The sole dispute between the parties to this case turns the proper interpretation of Sentence (2), quoted above. There is no disagreement that the Railroad Commission of Texas (the "Commission") has adopted Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, Webb County, Texas. Those Field Rules apply to the wells at issue in this case. Those Field Rules, originally effective February 24, 1998, were amended into their current form effective November 2, 2010. The Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, as amended, are attached as Tab 2 to this Motion. The Court may take judicial notice of these Field Rules adopted by the Commission, and ConocoPhillips requests it to do so. TEX. R. Evm. 201. Vaquillas contends the Field Rules triggered the exception in Sentence (2) to the parties' basic agreement of Sentence (1 ), which was that ConocoPhillips would retain 640 acres for gas wells. (Plaintiffs Original Petition iii! 13-14). Vaquillas contends that the Field Rules "established different units of acreage per well," specifically only 40-acre units for gas wells, and that consequently, COPC must forfeit, because of Paragraph 18, a great deal more acreage from the two Leases than it already has released to Vaquillas. (See Plaintiffs Original Petition iii! 14, 17, 18, 19). For the reasons explained below, Vaquillas' contentions are wrong Under the straightforward, plain meaning of Paragraph 18, the Commission's Field Rules do not "establish" different units of acreage per well. Those Rules state only that no well may be drilled on less than 40 acres, which is exactly the same minimum density that applied under the Commission's Statewide Rules in effect for these Leases before the Commission adopted Field Rules. The Field Rules say nothing about any maximum acreage that may be assigned to gas wells. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE4 Consequently, nothing in the Field Rules is inconsistent with, or overrides, the parties' basic agreement that gas wells retain 640 acres. Nothing about those Field Rules "establishes" any unit different from 640 acres. 4 II. PERTINENT PROVISIONS OF THE TWO LEASES As Texas oil and gas leases, the two Leases actually are conveyances by which the Lessor granted a fee simple determinable in the minerals in and under the land described in the Leases to the Lessee, who is more properly referred to as a "Grantee." Natural Gas Pipeline Co. v. Pool, 124 S.W.3d 188, 192 (Tex. 2003); accord Anadarko Petroleum Corp. v. Thompson, 94 S.W.3d 550, 554 (Tex. 2002). By the first Lease, Vaquillas and its predecessors granted to ConocoPhillips' predecessor the mineral estate in and under 26,622. 79 acres of Webb County land for "five years (called "primary term") and as long thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled hereunder." By the second Lease, Vaquillas and its predecessors did the same for an additional 6,740 acres of Webb County land, except the term of that Lease was for "three years ... and as long thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled .... " "An oil, gas and mineral lease is indivisible by its nature. Production from any part of the lease keeps the lease in effect during the primary term and for long as oil, gas and other minerals are being produced as to all lands described in the instrument." Shown v. Getty Oil Co., 645 S.W.2d 555, 560 (Tex. App.-San Antonio 1982, writ refd). Accord, Matthews v. Sun Oil 4 There are field rules that do "establish" maximum acreages. As one example, Tab 3 to this Motion is a copy of the Final Order Adopting Temporary Rules and Regulations for the Big Reef (Edwards) Field, Webb County. Rule 3 of that Field Rule establishes standard drilling and proration units to be 160 acres. Those rules provide that "no proration unit shall consist of more than ONE HUNDRED SIXTY (160) acres, plus a 10% tolerance. ConocoPhillips' point is that the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field do not establish any such "maximum" units. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGES Co., 425 S.W.2d 330, 333 (Tex. 1968); Humphrey v. Seale, 716 S.W.2d 620, 622 (Tex. App.- Corpus Christi 1986, no writ). Accordingly, ConocoPhillips' extensive production from the two Leases entitles ConocoPhillips to maintain the Leases in full force and effect as to all of the land covered by the Leases until one of two events came to pass, both of which are "limitations on the grant." The first limitation on the grant is found in the habendum clauses of the two Leases and is cessation of production in paying quantities, an event that has not occurred. Under Vaquillas' arguments, the second limitation on the grant is the requirement to deliver releases of undeveloped acreage that is contained in Paragraph 18. Consequently, the question posed by Vaquillas' Petition is whether by virtue of a second limitation on the grant contained in the two Leases, ConocoPhillips must release thousands of additional acres it has earned by extensive drilling and would continue to hold under the habendum clauses because Sentence (2) of Paragraph 18 means it may retain only 40, rather than the agreed 640, acres around producing wells? Note that both Leases expressly authorized ConocoPhillips to assign acreage up to 640- acres (plus a tolerance of 10 percent) to gas wells. Paragraph 4 of both Leases grants optional pooling authority to the Lessee and says: ... units pooled for gas hereunder shall not substantially exceed in area 640 acres each plus a tolerance often percent (10%) thereof, provided that should governmental authority having jurisdiction prescribe or permit the creation of units larger than those specified, for the drilling or operation of a well at a regular location or for obtaining maximum allowable from any well to be drilled, drilling or already drilled, units thereafter may conform substantially in size with those prescribed or permitted by governmental regulations. Paragraph 16 of both Leases created an additional limitation on the Lessee's pooling authority by restricting the option to pool to leases covering land belonging to Vaquillas or in which Vaquillas owned an interest, but that restriction is not pertinent here. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE6 Accordingly, the normal and completely authorized block of acreage under these Leases for gas wells is 640 acres. As noted above, that acreage for gas wells was expressly authorized by the pooling clause. Under Sentence (I) of Paragraph 18, that was the parties' agreement for "retained acreage" around gas wells at the time Paragraph 18 came into play as an active limitation on the grant of a fee simple determinable to ConocoPhillips "as long thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled .... " (Leases i!2). III. THE FIELD RULES The Field Rules do not, on their face, say anything about a minimum density, or minimum acreage around wells. (See Tab 2 to this Motion). The Field Rules state (with an important exception) that wells must be at least 467 feet from property and lease boundaries ("lease line spacing") and at least 1,200 feet apart if they are drilled to the "same reservoir on the same lease, pooled unit, or unitized tract" ("between well spacing"). The exception added by the 20 I 0 amendment to the Field Rules is that there is no between well spacing for wells drilled at least 660 feet from the nearest property or lease boundary. The minimum distances of 467 feet for lease line spacing and 1,200 feet for between well spacing are the very same minimum distances set forth by Statewide Spacing Rule 37, which governed wells on these Leases before the Commission adopted Field Rules. See 16 T.A.C. § 3.37(a)(l) (stating the Statewide Spacing Rule as follows: "No well for ... gas ... shall hereafter be drilled nearer than 1,200 feet to any well completed in or drilling to the same horizon on the same tract or farm, and no well shall be drilled nearer than 467 feet to any property line, lease line, or subdivision line."). So, the Field Rules did not adopt any "different" DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE7 spacing rules from the Statewide Rules already in effect before the Commission promulgated those Field Rules. When, as here, a Field Rule of the Commission does not contain a well density requirement, which is the minimum amount of acreage needed to drill a well, but does prescribe minimum spacing requirements, one looks to the Commission's Statewide Rule 38, titled "Well Densities," to ascertain minimum densities. 16 T.A.C. § 3.38. "Rule 38 establishes the minimum number of acres to be assigned to each well in a given reservoir." 2 E. Smith & J. Weaver, TEXAS LAW OF OIL AND GAS if 9.3(B) (2013). Statewide Rule 38(b)(2)(A) provides that for spacing rules requiring a minimum 467 feet lease line spacing and 1,200 feet between-wells spacing (which is the case for both the Statewide Spacing Rule 37 and the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field), the minimum number of acres that must be assigned to each well is 40 acres. There is no maximum number of acres that may be assigned to each well. Except for the requirement that there must be at least 40 acres, Rule 38 does not require acreages of any particular size to be assigned to gas wells. 5 The only relevant prohibition in Rule 38 is that "[n]o well shall be drilled on substandard acreage," which means in this case, no well shall be drilled on less than 40-acre units. 16 T.A.C. §3.38(b)(l). None of the applicable Commission rules prohibits drilling on, or retention of, units larger than 40 acres per well. As stated above, neither the Field Rules nor Statewide Rule 38 5 Proper interpretation of the Commission's Field Rules is, of course, a question oflaw for the Court. See, e.g., State v. Bilbo, 392 S.W.2d 121, 122 (Tex. 1965) (interpretation of certificate issued by the Commission presents a question oflaw). DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGES establishes any maximum acreage per well. 6 Consequently, these parties' agreement that ConocoPhillips may retain 640 acres of retained acreage around gas wells complies in every respect with the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field and Statewide Rule 38. As a matter of common sense, blocks of 640 acres plainly satisfy the requirement that there must be at least 40 acres assigned. As will be discussed in greater detail below, nothing in the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field requires, mandates, or-important here--"establishes" any units of less than 640 acres. Rule 3 of the Field Rules addresses proration. There is no factor in the proration formula for the Vaquillas Ranch (Lobo Cons.) Field for the amount of acreage assigned to wells. Other field rules do employ acreages as a factor for proration, but these Field Rules do not. IV. ARGUMENT AND AUTHORITIES A. The Word the Parties Chose for Paragraph 18: "Establish." In order to decide this case, the Court must closely analyze the specific language these parties chose to use for Paragraph 18 of these Leases. The operative words from the exception in Sentence (2), quoted above, are: "in case any rule adopted by the [Commission] for any field on this lease provides for a spacing or proration establishing different units of acreage per well. then such established different units shall be held under this lease by such production, in lieu of the .. . 640-acre units above mentioned." The leading Texas Supreme Court opinion on this type of language-which ConocoPhillips says compels a decision in its favor-is Jones v. Killingsworth, 403 S.W.2d 325 6 As noted above, the maximum acreage limitation for the wells at issue here is set forth in Paragraph 4 of the Leases. Paragraph 4 prohibits ConocoPhillips from assigning more than 640 acres (plus a IO percent tolerance) to each gas well. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE9 (Tex. 1965). In Jones, the Court was called upon to construe a pooling provision in an oil and gas lease that provided, in pertinent part, as follows: Units pooled for oil hereunder shall not substantially exceed 40 acres each in area, and units pooled for gas hereunder shall not substantially exceed 640 acres each plus a tolerance of I 0% thereof, provided that should governmental authority having jurisdiction prescribe or permit the creation of units larger than those specified, units thereafter created may conform substantially in size with those prescribed by governmental regulations. Id. at 327 (emphasis added). The Railroad Commission promulgated Field Rules for the field covered by the Jones lease, and those Field Rules required operators to assign a minimum of 80 acres to oil wells, but went further to permit them also to assign an additional 80 acres, for a total of 160 acres to oil wells. Id. The dispute before the Supreme Court was that the lessor, Jones, contended the language of her lease authorized the lessee, Killingsworth, to unitize only 80 acres around oil wells. Killingsworth, the lessee, contended the Field Rules permitted him to create units that conformed substantially to the maximum acreage of 160 acres that was permitted for oil wells by the applicable Field Rules. The Supreme Court decided the case for Jones by focusing on the difference between two specific words-"prescribed" and "permitted"-that the parties had employed in the Jones-to-Killingsworth lease. The Court held as follows: The lessors did not consent to enlarge an oil proration unit to any size permitted by governmental regulations. They gave their consent to enlarge a unit of substantially 40 acres, but only to the extent of the size of units prescribed by the regulatory authority. The fact that the Railroad Commission may permit a much larger unit cannot be read into the lease contract when, as here, the authority create larger units is expressly limited to units of the size prescribed by the Railroad Commission. The Commission prescribed a unit of 80 acres. [The field rules clearly say that there must be a proration unit of at least 80 acres, and there may be larger units of not more than 160 acres]. * * * The parties obviously knew when the lease contract was executed that a permitted oil proration unit could conceivably be much larger in area than one prescribed by governmental authority. To say that a lessee can pool lessors' land DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 10 with units of any size permitted by the Railroad Commission would defeat the intention of the parties to restrict the size of the units to the size prescribed by governmental authority. Id. at 328 (emphasis in original). The same analysis is applicable here. Before the exception in Sentence (2) of the Vaquillas Leases, quoted above, comes into play, the Railroad Commission must "establish" units for gas wells of a different size than 640 acres. The parties used the word "establish" twice, saying first "establishing different units of acreage," and second, referring to "established different units." The parties did not say the exception in Sentence (2) comes into play if the Railroad Commission adopts a Field Rule that merely "permits" the creation of gas units of fewer than 640 acres, and that is all the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field do. They permit operators to drill wells on a minimum of 40 acres, but they do not "establish" 40 acre units. Unless words are specifically defined in oil and gas leases, Texas courts give those words their "plain, ordinary, and generally accepted meaning." Heritage Resources, 939 S.W.2d at 121. The ordinary meaning of the word "establish" is "to settle, make, or fix firmly." BLACK'S LEGAL DICTIONARY at 626 (9th ed. 2009). Similarly, an old Texas case says "established" means "(m]ake steadfast, firm, or stable, to settle on a firm or permanent basis." Rowley v. Braley, 286 S.W. 241, 245 (Tex. Civ. App.-Amarillo 1926, writ dism'd). WEBSTER'S THIRD NEW INTERNATIONAL UNABRIDGED DICTIONARY (1993) says "establish" means either "to make firm or stable," or to "settle or fix after consideration by enactment or agreement." Id. at 778. Using those definitions, it is flatly incorrect for Vaquillas to argue that the Field Rules in question "settle" or "fix firmly" that there must be only 40 acre units of acreage for gas wells. Those Rules clearly do not. Those Rules provide nothing more than that gas wells must have a DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 11 minimum of 40 acres, and ConocoPhillips' retained acreage blocks of 640 acres clearly meet that minimum limit. ConocoPhillips was well within its authority under the Vaquillas Leases' pooling clauses to assign 640 acres to gas wells, and nothing in the Field Rules "established" or in any way compelled ConocoPhillips to reduce its units to any different size. In order for the Court to give Sentence (2) the meaning for which Vaquillas contends, the Court would have to rewrite that sentence in both Vaquillas Leases to say something like: "in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this lease provides for a spacing or proration [permitting] different units of acreage per well, then such [permitted] different units shall be held under this lease by such production, in lieu of the ... 640-acre units above mentioned." But this Court may not rewrite the Vaquillas Leases in the guise of interpreting them. E.g., EOG Resources, Inc. v. Killam Oil Co., Ltd., 239 S.W.3d 293, 300 (Tex. App.-San Antonio 2007, pet. denied). And that is precisely the interpretation the Supreme Court rejected in Jones. 7 "Prescribe" does not mean "permit," and "establish" does not mean "permit." B. The Presumption Against a "Limitation on the Grant." For the reasons explained above, there is no room for doubt about the proper meaning of Sentence (2). As explained above, "establish" does not mean "permit." Indeed, "establish" means "to settle, make, or fix firmly," which is a far cry from "permit" or "allow." But even if there were some possible doubt or ambiguity in Paragraph 18, the Court would be required to interpret Paragraph 18 as ConocoPhillips contends because of the long-standing, very strong, 7 The Supreme Court decided Jones v. Killingsworth in 1965, several years before either of the Vaquillas Leases was executed. With knowledge of the Court's interpretation in Jones, there can be little doubt that if these parties intended for Sentence (2) to apply when the Railroad Commission merely permitted smaller units, they would have said so. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 12 rule in Texas law that "the language used by the parties to an oil and gas lease will not be held to impose a special limitation on the grant unless it is clear and precise and so unequivocal that it can reasonably be given no other meaning." Rogers v. Ricane Enterprises, Inc., 773 S.W.2d 76, 79 (Tex. 1989). Accord, Anadarko Petroleum Corp. v. Thompson, 94 S.W.3d 550, 554 (Tex. 2002); Fox v. Thoreson, 398 S.W.2d 88, 92 (Tex. 1966); Knight v. Chicago Corp., 188 S.W.2d 564, 566 (Tex. 1945). Vaquillas wants the Court to interpret Sentence (2) of Paragraph 18 as a limitation on the lessors' grant to ConocoPhillips of a fee simple determinable in the mineral estate in and under all land described in the Vaquillas Leases. Although ConocoPhillips disagrees, Vaquillas even describes Paragraph 18 as an automatic, self-executing limitation on Vaquillas' grant to ConocoPhillips. Paragraph 11 of Plaintiffs Original Petition alleges: "Under Paragraph 18 of both oil and gas leases, un-earned acreage reverted to Vaquillas 90 days after Conoco ceased drilling wells under the continuous drilling clause." Vaquillas even describes the additional acreage it contends ConocoPhillips must release as the "Reverted Minerals." (Plaintiffs Original Petition ii 14). Accordingly, Vaquillas wants the Court to interpret Sentence (2) to result in ConocoPhillips' loss of an additional thousands of acres of leasehold estate, i.e., Vaquillas seeks a ruling from this Court that ConocoPhillips forfeited the thousands of acres Vaquillas calls the "Reverted Minerals," which are those acres included within the 640-acre "Retained Units" that ConocoPhillips retained when it executed releases to Vaquillas under Paragraph 18, but would not be within the only 40-acre blocks Vaquillas claims Sentence (2) allowed ConocoPhillips to retain. When the word "establish" in Sentence (2) is given its proper, ordinary meaning, Vaquillas' interpretation of Sentence (2) is not a permissible--or even reasonable-- DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 13 interpretation. That is especially true in view of the Texas Supreme Court's strong presumption against construing lease provisions as limitations on the grant, which is what Vaquillas contends Sentence (2) of Paragraph 18 is. Vaquillas' interpretation should be rejected as a matter of law. V. THE SUMMARY JUDGMENT RECORD The summary judgment record that ConocoPhillips places before the Court consists of: I. The Declaration of Dana C. Huebner, attached as Tab 1, which authenticates copies of the two Leases and the Partial Releases of Oil and Gas Leases that ConocoPhillips has already filed of record releasing acreage from the two Leases, but retaining 640-acre blocks of acreage around producing gas wells. 2. The Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, Webb County, Texas, as amended, attached at Tab 2. 3. ConocoPhillips relies on Plaintiffs Original Petition to show what Plaintiff contends in this case and for certain admissions therein that demonstrate that certain facts are undisputed. ConocoPhillips has generally denied the allegations in Plaintiffs Original Petition. If this Motion for Summary Judgment is denied, ConocoPhillips reserves all rights to contest the allegations in the Petition. VI. PRAYER FOR RELIEF Defendant ConocoPhillips Company prays that this Motion for Summary Judgment will be granted and that final judgment be entered that Plaintiff Vaquillas Unproven Minerals, Ltd., take nothing by this action. ConocoPhillips also prays for recovery of its costs and for all other relief to which it is entitled. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 14 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Defendant's Motion for Summary Judgment was served via email on the following counsel of record for Plaintiff as stated on this 30th day of July 2014: Gregg Owens Raul Leal Email: gregg.owens@haysowens.com Raul Leal Incorporated Robert G. Hargrove 5810 San Bernardo, Suite 390 Email: rob.hargrove@haysowens.com Laredo, Texas 78041 Hays & Owens L.L.P. Tel: 956.727.0039 807 Brazos Street, Suite 500 Fax: 956.727.0369 Austin, Texas 78701 Email: rleal@rl-lawfirm.com Tel: 512.472.3993 Fax: 512.4 72.3 883 Michael Jung Armando X. Lopez Strasburger & Price, LLP 1510 Calle Del Norte, Suite 16 901 Main Street, Suite 4400 Laredo, Texas 78041 Dallas, Texas 75202-3794 Tel: (956) 726-0722 Tel: 214.651.4724 Fax: (956) 726-6049 Fax: 214.651.4330 (main) mandox@rio.bravo.net Fax: 214.659.4022 (direct) Email: michael.jung@strasburger.com Counsel for Vaquillas Unproven Minerals, Ltd. DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 16 Dated: July 30, 2014 Respectfully submitted, 7n~~ce Michaelpowell State Bar No. 16204400 Email: mpowell@lockelord.com Elizabeth L. Tiblets State Bar No. 24066194 Email: etiblets@lockelord.com LOCKE LORD LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201-6776 Tel: 214-740-8520 Fax: 214-740-8800 Adolfo Campero State Bar No. 00793454 CAMPERO & ASSOCIATES, P.C. 315 Calle Del Norte, Suite 207 Laredo, Texas 78041 Tel: 956-796-0330 Fax: 956-796-0399 Email: acampero@camperolaw.com ATTORNEYS FOR DEFENDANT CONOCOPHILLIPS COMPANY DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 15 TAB 1 DECLARATION OF DANA C. HUEBNER I. My name is Dana C. Huebner, and my date of birth is It- ffil - [t\ ~~ My business address is at ConocoPhillips Company, 600 North Dairy Ashford Road, Houston, Texas 77079. I am employed as a Landman by ConocoPhillips Company, and I currently provide land support to ConocoPhillips' South Texas operations. I have been employed by ConocoPhillips Company since June 2013. I hold a B.B.A. degree from the University of Houston. 2. In my capacity as a landman, I have access to ConocoPhillips' land records, including oil and gas leases and releases of oil and gas leases. I have examined those leases and can and do testify as follows: A. The document attached at Exhibit A to this Declaration is a true and correct copy of the Oil, Gas and Mineral Lease, as amended November 1, 1987, from Vaquillas Ranch Company, Ltd., and others to Conoco, Inc., covering 26,622.79 acres of land, more or less, in Webb County, Texas, as more fully described on Exhibit "A" attached thereto, without subsequent amendments. B. The document attached at Exhibit B to this Declaration is a true and correct copy of the Oil, Gas and Mineral Lease dated November 1, 1987, from Vaquillas Ranch Company, Ltd., and others to Conoco, Inc., covering 6,740 acres ofland, more or less, in Webb County, Texas, as more fully described on Exhibit "A" attached thereto, without subsequent amendments. C. The document attached as Exhibit C to this Declaration is a true and correct copy of a Partial Release of Oil and Gas Lease, executed February 17, 2014, that is shown to be recorded in Volume 3577, Pages 454-530 of the public records of Webb County, 1 Texas. This Partial Release pertains to the 26,622.79-acre lease described in subparagraph A, above. D. The document attached as Exhibit D to this Declaration is a true and correct copy of a Partial Release of Oil and Gas Lease, executed February 17, 2014, that is shown to be recorded in Volume 3577, Pages 440-453 of the public records of Webb County, Texas. This Partial Release pertains to the 6,740-acre lease described in subparagraph B, above. I declare under penalty of perjury that the foregoing is true and correct. Executed in Houston, Harris County, Texas, on the 'Vl-tvl day of July 2014. Dana C. Huebner 2 EXHIBIT A ~- Pri>duccn U {140 ?o,~lnllnt ~ Sii1lon1r1 Co •• llou110~, T,~11 • ·\.. ·• ·~.,ViJi UO Acr.1 Po0ll11r- Pr:ovl1lo11 •. I if• ,. OIL, GAS AND MiitJt'RAL LEASE AMENDING OIL·, GAS AND''ntNERAL_ LEASE DATED JUNE 15, 1974 (AS AMENDED) BJ;TWEEN LESSOR-AND LESSEE HEREIN 26,622.79-acres of land, more or less, situated' in Webb County, Texas more fully described in Exhibit "A11 attaclted···he·reto Bnd made a part Of thiS Lease for all relevant purposes, including limitations upon warranty as specifically set out therei~. """""' For lli• 11urww of cakul.ilnr th• nntaJ 111:rra1nt1.1i•rdn.ti..r pnivl~td for, uld Ind lo utlm11..i 10 coaiprlM .... ?.~_,_6~-~ ..:.?..9 .... ··-··---·-----;--...acr.. ,_ ":h•lll•r It 1dul': ~prlw1 mor• or,, I~•.. . .five t. Svbh•:t to Ill• othr proYhl11111 bu•h1 oontah1.!!, thh' In.. 1h1.ll ~- for & 111111 Gf Wtt 7Uro from. \bit due (olltd "prL'"1r7 tum.-) and ~.J?,- llitnt!i..r .u oil, ,u or oUl_\f" "''"'~I .h.11~11od frolll '"'1 I•. nd or lan.d wl!21_ •IJJcll nld l1nd 11 ~loci b.,oundoc. 'il'>h~eri)i~M! ~ !l..rtgt.J.P~?L.~2-~. t.f-olf~1f~~~-li~not!ib.P'lf4~~.~ Mi .-U-1i=~J!1R~\!1, 1l~t..0Jllrv'°;~.~t ~. 1 · ••II• or "' tlit credit ot Woo~ 111'° Ult p/PtllllH. 10 •1ilc11 t.b1 -.1r. =•r bt unnt-=i..d 1 Lt•-.al ·J..tf.. 111.,. fro.r.a llnit 10 Lime purdl1M .,.,. ror1llr oil Jn Ju P01 ... 11lon, P•rlnr·the"nnrht Prln th1t1for"'11r.hllln ·-tor th• neld •h•ro · roducod on· lb• dcte·ot·pyrchHU (\I) Jgl .'b-' '"l· . 0. ...•·'"·M.J . •' ti) J. 1:1 ---------·-·-·---- STATE 01'------------·} TB:LU StNGL& J.CKNOWLEDOM&HT COUNTY OF.-..- - - - - - - - - - - - - pen.ot1all1 1p~1rtd .•. _ _ __ ---------··----------------------------------------- 1tnow11 i.o m1 to 1H th1 Pinon •• whou 11....,L_, _ _ _ ,__..111b1erlti.d l.O U.1 roroio\111 l11rtNm1n\, a11d acllnowlld1td l.O m1 I.hat _.b ..... u.c:u~ th• 111JJ11 for \bt PllrPOltl and aontld.r1Uo11 \bt.rli11 UPrthld, · Olnn undu 1117 hlml and ual of autet, \hll tht-----.d•7 1 1 f - - - - - - · - - . - - - - · - - - · A. !;), 11---· Nota'7 Publll In 1114 tor--------Cou11tr, - - - - - - STATt O F - - . - · - · - - - - - - - - · - · - } TEXAS lOINT ACKNOWU:OCM&HT COUNTY O F - - - · - - - - - - - - Stfort mt, U.t 11nd1nl1ntd, 1 Not&rr Public 111 and for nld Collnt1 and S\1\4, on \.bh du- 1>troonal17 C\011 11ndu in1 b&M and Hal of oUlct, \bl.• \ht..-----d17 ol-- No~U'f P11bllc In .ad for---··-----·-Coinlng ~O acre~, l1~ing the N\.I 1/lf of SE J/l; of CC:SO i RGNG Survl·~· 259. (6) All of the \J, 320 :i.:r~·::. of Survey 1629 d<.•scribi?d and included In O&G Lsc. tu ();1nlel A. Pedrotti dated Sc-j'\.-;:1h1.•r 2~. 1973, a,s amcndi:d. T~OP00121s7:• --~---~-.--- EXlllllT I C1lcul1tlon of toy1lty to bt SNld on t•• d•~l't'•r•d to L••••• or Afftll•t•• far u11 (Ind nn for renltl tn •ccard1nc1 'llth p1r111r1ph 19. 'tlnclp1h '•Y L111or roy1lty bind on th• 11r11t1r of the v1l;ht1d 1v1r1;1 ptlc• peld by th1 thr11 l1r1111t vol\ldtrtc p1Jrcb111ra for th• c1l1nd1r quarter In th• 111t q\llrttr of Vtbb COl.lntY or the v1l11httd 1v1r1;• of the prlc•• us1d by tilt L"•or for roy1L tY pt)'Mnt p1.1rpo11• a 0111 sources rntrVY Pl.nnlnv loot publtc1tlon or 11 r1parud to th• State of t11t11 h1r 11v1r1nc1 tu purpo•••• Utp 1. r1lcul1t1 tht v1l9ht1d 1v1r1111 prtc1 for th• .onth for 11ch of thv thr•• llr11si volumt P'lrch1111 far tit qu1rt1r tr- th• tax r1c:ord1. llMth•Jpnu•ry 19§! Purchn11 fro,. Ca!l!P•ny A Lt••t 1 100,000 z.oo 200,1163 Unit 14 ao,ooo 1.51 120,eoo ?yrehnet frO!!I Cp•p•ny I 291,733 1110,1121 '·" TOTAL Unftltd T1x11 360,tlZI C1lc:ul1t1 613,396 Tren••l••ton Monthly V1l11ht1d Av1r1111 Price 61J,396/l60,t121 • S1.70/MKitu. t1p11t procedure for r11111lnln11 two 11onth1 for thh purch111r ind for re1111tnlnt t110 purch111r1. Step 2. C1lcul1t1 tht v1hht1d 1v1r1111 price of the thr11 t1r;est volu1111trlc purch111r1 for th1 qu1rt1r using JllOnthly v1lun fro• lttp t. Montb•J1ny1ry \9!! Month • Februuv 12aa Hon th ' March l?IU! ?mb.WL VolUM Prlca Extanslon Vo\\nlt Prlc:a Extant Ion Vol~t Price Extension "' .S/HCf • "' S/HCF • "' S/MCF • Unltad TIXll 360,1121 1.70 61J,J96 397, t:SO t.5a 627 ,465 :S20,J06 t.5a 506,0!:S Traru11ls1lon uruor: South Gulf Tot1l1 400,m ill..222 Lil t, 136,044 1.55 620,346 ~ = 350,723 1,!l3,74Z 1 1 047 1 009 1.60 WI. 561, 157 lli.m soo,126 1.55 775,195 :i.!!!...222•'~·'~''---''~"""''~··· 1,673,255 I, 121,432 1,756,158 Sum of Volurau IUll of E11un1!on1 l,304,485 5,263,855 1.59 sup l. C1lcul1t1 wal;htad avar191 prlca U.td by Lat••• to calculatt roy1lty p1y11111nt1 on 111 d1ltv1rtd to L11111 or l1ftlht11 and not for rn1le. Honth•Jaouary 1?!8 Month•February 191111 Hpntb•Mprch 1988 Voh.-1 Pr I ca Extension Voluma Price Extension Vol1o1111e Prlc1 Exunalon "" S/llCf • "' S/HCf • "' $/HCf • 155,000 1.60 248,000 140,000 1.62 Z26,!00 155,000 t.5e 244,900 'II' gt vo1y..., Sypi 9t E11un1ton1 Velghsrd &ysrpgs rcie• 719,700 1.60 IUp 4, CIO'lplra 111l9httd 1v1ra91 price ctlculattd In Sup Z to tha walthtad 1var•t• \111a1 prlc1 c:1lc:ul1tad In •t•p J. Sl.60/HCF 11 1n1t1r than S1,59/KCf ao no addltlon1l roy1lty p1y111ent1 1ra required 1or thh qVlrt1r, VOIU1111 and prlcu u11d In thh u:1111pla tra ua1d for lllunrulon and 111y not b1 rtflactlvt of 1c:tu1l condltlona. THE STATE OF TEXAS § § COUNTY OF WEBB § '-{iL This instrument was acknowledged before me on the q day of January, 1988, by J. 0. WALKER, JR., General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. ~ . µA,. *~o,,°}-- Notary Public in an or The State of Texas. My Co1T111ission Expires 7-3- o 1 Lt:1vR.A BA LLEvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § oY--L This instrument was acknowledged before me on the I day of January, 198B, by E. WALKER QUIROS, General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 9~day of January, 1988, by GENES. WALKER, General Partner of Vaqu111as Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. oar): ub~in and for The State of Texas. My Corrrnission Expires ,_ 7- 3- '1 oq ,l_,11012.A GA usvl Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the CJ~ day of January, 1988, by EVAN B. QUIROS, General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. d.,j,a ~,J(1,,'}- Notary Public in and for The State of Texas. My CDITllliss1on Expires '7-3-J"A LLEN Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § ~ This instrument was acknowledged before me on the '=t day of January, 1988, by E. WALKER QUIROS, Trustee for the Vaquillas Unproven Mineral Trust. ~··~4~~ Notary Pu lie in and for The State of Texas. My Conmission Expires: 7-:3- ?9 .IJA vv 811 LLEvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § n'fL This instrument was acknowledged before me on the -, day of January, 1988, by GENE S. WALKER, Trustee of the Vaquillas Unproven Mineral Trust. ~" 94~'" OOr,,t ~Pub le in and for The State of Texas My Commission Expires: '1-3- J'? l.,,,11uR.A "£5,.,, LlsvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the day of January, 1988, by EVAN B. QUIROS, Trustee of Vaquillas Unproven Minera 1 Trust. ~ " ~Y - ~ !! ), a, 4-11Q,"9-' Public in and for The State of Texas My Commission Expires: '7-3-11'! lc.u/(A 1J,.,, Lle:vJ Printed/stamped name of Notary. -13- GWB2/dm 130(1) THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the CJ fl--, day of January, 1988, by J. 0. WALKER, JR., Trustee of Vaquillas Proven Mineral Trust. NOtarY ic in and for The State of Texas " My Corranission Expires: 7-3- i?{ LAJ~A 12,,q l..LG vJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § y.LJ the 9 day of January, 1988, by E. Proven Mineral Trust. Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged the 9 ~ day of January, 1988, by GENE S.WALKER, Trust Proven Mineral Trust. otary ub 1c 1n an for The State of Texas My Commission Expires: 7- .3- 'g"f L.4 J)/(A BA LL;;;vJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § on the This instrument was acknowledged before me 9 L day of January, 1988, by EVAN B. QUIROS, Trustee of Vaquil 1as Proven Mineral Trust. Notary Public in and for The State of Texas My Commission Expires: 7-3-:>!j 0AuRA S-4 LLev-1 Printed/stamped name of Notary. -14- GWB2/dm 130(1) ·.. ·.. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 'l-J-b day of January, 1988, by l ci c. • .So..el er . Attorney-in-Fact for CONO~ INC., ali aware corporation, on behalf of said corporation. NotlU~in?fk'~ The State of Texas My Commission Expires: 9-!&'· f?g' LJ e.fl«- !/la. r Ke. rt- Printed/stamped name of Notary. -15· GWB2/dm 130(1) ·r...,,.... . EXHIBITB ., • • J : Oo oO • •- A "i • itu1d11uu U (1 .. 0 ;. iJ:I UD Acf• l'oollns Pro.-bi..11 • OIL, GAS AND MINERAL LEASE TBIS AGltEEKENT mat. lbb._!~ .. ------·l!&T of. Novemb~L--------·--···--··--·-···11~?._, b.t..._11 Vaguillas RancQSoml?fil}Y.t,_Ltd.; Vaguill~.Y.9.P.roven_Mingal Tn,ist i ...Y!9..'!!.+1.~!..9.Y.~D. _ _2!!!.l~ral_!~ust..;_l!f:.S.'!!!~nd thr.g.H.&h....!~f!....&.fil!.i:nLPJ!t..t.~ ....-h..-Q.,_B!J..lc.er. Jr~·-·---··· -~. Wal~r_gu_!~.l!.i....£~~~!!s~L~M-~<'!!!-Jb.. ...Q.\!ill.~ - . ---·-···-·----··· ;::·~:~ Oii• ~ inon>. • " - add ..... lu- ·- P..!.~O:B-~;1086:-~p Texa! 7B04Ji=~===-====-~ and __G..?.!!~~.£:..z.Y-~-~ox 219L__~o'!~!Q..l!.t._'.t~!!P_-1.1.£?_~-----·--·-·---·• r..-. WITNESS!:THi - 1• t.NoJ- 111 ccmaw...,i.101> ot......!en Do l la r..§..!!E.!!. •.9.~-1!~_99_0_4....rul!LY.~.!..1.@bl t;:_~..QJ!§.!~.E~!!P.!L.--.-- ...»oll&r• 11.J: 0•00 )Jn b.nd paMt. of Lh• roJalU11 bu.In Pf'llYIW, •11d Of U.. &pMmuts ol I.Maw banln toat.IMd, berebr sraa.ta. kuM u.4 J.tt.o u:clual"'1' viii,;'L.'.... tor tb• InUpoM of h1n•Ua1U11s, t:Xpl.orl111', pro.p1atl11s, drUlh•s U>d minlnl' for a11d Pf'Odud.ns oll, I'll 1.1\d all otbar mir.1rals, C011d1Ktlns p;plora~n. noloslc and ctoph111c&I 111rYirJ'I b7 ~a»b, oora Ullo sn.'Pi&;J and 111asn.tlu• -".~:~~· au, watu an.s ~sr t111lda. and air lnto aubnrl1q Hrat.. 1.,.1,... pfoe Un•, bulldf•s ~ 1 lmnita, ~ 1t1Llo11a, te 1. _ nM 111 - . - 1tn1oo hlAI thtr91111 11111. 011, o\'tr •nd uzw1 Ind.I DWlllubllv h~ f.lld for ----°"'"'~· ------ ITATZ 07__ OOVNT?OJ': __} T&XUJOlNT .lCKNOWLU>OlilEHT Nt1tu7 hbllt la -4 tor____ """"'· -----·---- t , II ~ ~ l ~ " ~ 0 ~~ ol l f ~ • ·f .]::: 0, •! 1 l ( I ~ ~ i: la • I, ~ • • fF l I l ~ k ' l ! [ i' i p,. f. 'j t • ~ ; t' r { t i I .' . r,. L" .•. _:.:·. f i • irr r i • J • I i • • ADDENDUM TO OIL AND GAS LEASE From Vaquillas Ranch Co., Ltd. et al To Conoco Inc., Dated November 1, 1987 12. Should Lessee be prevented from complying with covenants of this lease by reason of conditions or acts set forth in Paragraph '11' hereof, then Lessee agrees annually to pay to Lessor an amount equal to the delay rentals herein provided for during such period of prevention, whether same be during or subsequent to the primary term, and such payment shall be made at the end of each year of prevention either to Lessor or to the depository above named for credit to the account of Lessor. 13. This lease does not cover or include any right or privilege of hunting or fishing on any part of the above described land, and Lessee agrees with Lessor that neither he nor his assigns or agents or employees of his assigns, will bring firearms or dogs upon the leased premises, and should this provision against hunting and fishing be violated by any agents, servants, employees or contractors of Lessee 1 s assigns, any such • person so violating same shall have no further right to enter upon the leased prem1 ses, and such person sha 11 be regarded as and sha 11 be a trespasser on the premises of Lessor and be subject to the penalties imposed upon trespassers under the laws of the State of Texas. 14. It is expressly agreed and understood that after production of ., oil and gas in corrmercial quantities is obtained from the leased premises, ~C'I the minimum annual income to Lessor from payment of rentals, shut-in c)1) royalty and royalty on production shall be sum of not less than Two_($2.00) Dollars per acre on the total acreage retained and then covered by this lease, but this provision shall not impair the right and privilege of Lessee, his successors and assigns, to release and surrender any part of the above described leased premises as herein provided. Lessee 1 hfs successors and assigns, shall detennine within 90 days from the expiration of any lease year during which royalties have been paid on actual production the amount of any deficiency, and shall within said 90-day period pay such deficiency to lessor or deposit same to Lessor's credit at GW82/dm 124(7) °"'I JUt 1 4 ~ ....... the depository hereinabove designated. • Default in the payment of such deficiency shall not operate to terminate this lease or any part hereof, but Lessee, his successors and assigns, agrees to personally pay such deficiency to Lessor at Laredo in Webb County, Texas, together with any reasonable cost, including attorney's fees, incurred by Lessor in collecting such deficiency if not paid within the 90-day period hereinabove provided for. 15. Nothwlthstanding any other provision herein contained, this oil, gas and mineral lease is limited to oil, gas and sulphur and minerals produced with oil and gas, and does not include minerals other than oil, gas and sulphur and minerals produced with oil and gas, as Lessor herein excludes from the leasehold estate herein granted, and reserves unto himself, his heirs and assigns, all minerals other than oil, gas and sulphur and mi nera 1s that may be produced with oil and gas, but it is 1 expressly agreed that gas 1 as used herein includes gas, condensate, distillate or any other gaseous substance or any other mineral produced with oil and gas, including sulphur. 16. The right to pool under Paragraph '4' of this oil, gas and minera 1 lease sha 11 be 1imi ted to 1ease or 1eases on 1and belonging to Lessor herein, or in which Lessor owns an interest in the oil, gas and other minera 1s. 17. For the purposes of the annual rental payments due under paragraph 5, Lessor and lessee agree that said payments have been timely paid and received, and that this Lease is perpetuated, without the necessity of further delay rental payments, until. the expiration of the primary term. 18. At the end of the primary tenn hereof, Lessee covenants and L D? agrees to execute and deliver to Lessor a written release of any and all portions of this lease which have not been drilled to a density of at least 40 acres for each producing oil well and 640 acres for each producing or shut-in gas well, except that in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this GWB2/dm 124(7) • • lease provides for a spacing or proration establishing different units of acreage per well, then such established different units shall be held under ~e~se by-su~h production, in lieu of the 40 and 640-acre units above mentioned; provided, however, that if at such date lessee is engaged in drilling or reworking operations the date for the execution and delivery of such release shall be postp~n;d a~d the entire lease shall remain in force so long as operations on said well or wells are prosecuted with reasonable diligence, and if, after the completion or abandonment of any such well ~.): Lessee commences the drilling of an additional well within Ninety (90) days from the comPlet1on or abandonment of the preceding well, or continuously conducts drilling operations in good faith and with reasonable diligence on said lease without any .ces_s.atjon for longer than Ninety (90) days, said lease shall remain in full force and effect during such drilling operations and until the end of Ninety {90) days after the completion or abandonment of the final well, at which time Lessee shall execute and deliver to Lessor said written release, releasing all portions of the lease not then so developed, Each retained unit shall contain at least one (1) well producing or capable of producing oil or gas in paying quantities, and the acreage within a unit shall be contiguous. lf, after the date the partial release called for under this Paragraph 18 talces affect, all production from a retained unit around a well or wells cease to produce oil or gas in commercial or in paying quantities, Lessee shall have one hundred eighty (180) days thereafter within which to commence operations to establish or re-establish production therein in cormnercial or paying quantities, whether such production be from the same wellbore or other wellbore. If such operations result in commercial production, then this 1ease, as it applies to such unit sha 11 continue until such corrmercial or paying production again ceases. However, if such operations do not result in corrmercial production, then Lessee shall have ninety ( 90) days after completion of such operations within which to commence drilling ·-or reworking operations within such unit, and this lease, as it applies to said unit, shall remain in force so long as operations on said well or for drilling or reworking of any additional well therein are prosecuted with no cessation of more than ninety {90} consecutive days, and if they result in the production of 011 or gas therein, so long thereafter GWB2/ dm 124 ( 7) "· ... • as oil or gas is produced from said unit. • As to any unit upon which cornnercial production may periodically terminate, the above right to timely resume operations and continue this lease as to such unit shall be reoccurring right. The stipulation above as to the size of retained tracts around wells shall never be construed as a satisfaction of Lessee's right, duty and obligation to reasonably develop the leasehold held by Conoco or its successors or assigns. After November I, 1990, Lessee agrees to dri 11 such add it i ona 1 we 11 s on the leased premises or such port i ans thereof as may be in force and effect from time to time, as may be necessary to reasonable develop the same for the production of oil and/or gas as a reasonable prudent operator. 19. A portion of paragraph 3 has been deleted and the following Is in lieu thereof. (b) on gas, including casinghead gas or other gaseous substances, produced from said land, the Lessors royalty shall be calculated and paid as follows: a) Sales To Non-Affiliated Third Parties: In the event Lessee enters into a gas sales contract with a non-affiliated third party, Lessor's royalty shall be one-fifth (1/5) of the gross proceeds received by Lessee from the sale of such gas. b) Sales To Related Or Affiliated Entities For Resale: Jn the event Lessee enters into a gas sales contract to sell gas to a related or affiliated entity, then Lessor s royalty shall be 1 computed on the greater of the following: I. One-fifth (1/5) of the gross proceeds received by Lessee or any affiliate or related entity from the sale of such gas to the first non-affiliated entity, or 2. One-fifth (1/5) of the highest price reasonably obtainable for gas by lessee and other producers or operators in the -4- GWB2/dm 124(7) • • east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. 11 In this regard, it is understood that the highest price reasonably obtainable" may be equal to, but is not necessarily, the highest price then being obtained by other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. c) Taking, Selling Or Delivery Of Gas To Lessee Or Its Related Or Affiliated Entities For Use (Not For Resale): In the event Lessee takes gas for its own use, or sells or transfers gas to a related or affiliated entity for use, then Lessor's royalty shall be computed on the greater of the following: !. One-fifth (1/5) of the highest price reasonably obtainable for gas by Lessee and other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. In this regard, it is understood that the "highest price reasonably obtainable" may be equal to but is not necessarily the highest price then being obtained by other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity, or 2. One-fifth (1/5) of the quarterly weighted average of the prices being paid by "purchasers" (as hereinafter defined) in the east one-fourth of Webb County, Texas, who are purchasing gas of like kind and quality. For the purposes of calculating the average price under this Paragraph c2, prices paid shall be those as reported in the Energy Planning Book publication or as reported to the State of -5- GWB2/dm 124(7) • Texas for severence tax purposes. the three largest purchasers • "Purchasers 11 sha 11 mean based on volume of gas purchased for such calendar quarter, in the east one-fourth of Webb County Texas. 1 For an example of the calculation of the quarterly weighted average of such price, see Exhibit Lessor and Lessee shall meet within eleven (11) months after the end of each calander year. At least thirty (30) days prior to such meeting, Lessee should furnish to Lessor a statement or other documentation of the basis upon which royalties accrued to Lessor under the terms of the Lease for the previous calender year. Any additional royalties calculated by Lessee to be due, if any, shall be paid at such meeting. Within one (1) year from delivery of the above referred to statement or other documentation, Lessor shall notify Lessee of any discrepancies. Failure to notify Lessee timely of any discrepancies shall constitute final acceptance of royalty payments as covered by such statements or other documentation. The first period for which Lessee shall prepare such statements or other documentation shall begin on April 1, 1988 and end on December 31, 1988. Nothing in this paragraph shall preclude Lessor from claiming any royalty which Lessor is entitled to as a result of mistake in computation, oversight in computation, or error in computation of royalty or which may result from the subsequent disclosure of a discrepancy. LESSOR'S royalty shall be without deduction for any costs, such as, but not limited to, costs of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting and otherwise making the oil, gas and associated substances ready for sale or use, except for a) severance and related taxes, and b) reasonable transportation expenses which may be necessary to be paid to non-affiliated third parties or entities to get Lessor's gas to a market or point of sale off the leased premises and which sale or sales will result in a net price equal to or r' <. I" I higher than if said gas had been sold at the wellhead. LESSEE may submit a copy of a proposed gas sales contract to Lessor which is acceptable to Lessee and request that Lessor approve same for -6- GW82/dm 124(7) ". - • royalty computation purposes. • Lessor sha 11 have thirty (30) days after receipt of a gas contract to approve same. If Lessor approves same or does not timely decline to do so, then Lessor's royalty on gas sold under such gas sales contract shall be based on the gross proceeds received under said contract. GAS contracts with a term in excess of three (3) years shall contain a provision for price redetermination no later than the end of the 3rd year and subsequent price redeterminations thereafter at intervals no greater than two (2) years apart. 20. Lessee agrees to fill all slu~h pits and level the same when they have ceased to be used and to restore the land to as near 1ts original state as is practicable and to pay for damages to the surface of the land and the improvements, water wells, growing crops and livestock thereon, and to any other personal property of Lessor, Vaquillas Ranch Company, Ltd., occasioned by, arising out of, or resulting from operations by Lessee, his agents, employees or independent contractors on the land hereby leased to Lessee. Lessee also agrees, when requested in writing by Lessor. to divulge to Lessor true and correct information as requested by Lessor as to all drilling, producing and marketing operations conducted under this lease and to furnish to Lessor copies of all electric well logs taken hereunder; provided, however, lessee shall not be obligated to release such information until it has been released to the industry. 21. Lessee hereby agrees to ensure that the two exit gates on F.M. 2895 (Forest Gate and Reynolds Gate) are guarded in an efficient and prudent manner during drilling, reworking or plugging operations and at other times as mutually agreed to by Lessee and Lessor. As to the exit gate on the north side of U.S. Highway 59, Lessee agrees to use its best efforts to work out an arrangement with other exploration companies using such gate to ensure that it is guarded in an efficient and prudent manner during drilling, reworking or plugging operations and other times as mutually agreed to by Lessee and Lessor. Further, Lessee agrees to use its best efforts to work out an arrangement with TransAmerican Natural Gas Corporation or its successors or assigns to ensure that the exit gate -7- GWB2/dm 124(7) • • .... located 9 miles north of Aguilares, Texas, on F.M. 2895 is guarded in an efficient and prudent manner during drilling, reworking or plugging operations and at other times as mutually agreed to by Conoco and Lessor. In regard to gates used by lessee and other exploration companies, Lessee agrees to pay its share of the cost of guarding such gates when such gate guards are required under this agreement. Lessee shall not be obligated to furnish a gate guard on any gate which has been abandoned or is not being used by Lessee. 22. Lessee agrees that before abandoning any well drilled on said ;j'., '0 ':) lease for oil or gas purposes, it will notify the owner or the surface estate in person or by telephone of its intention to do so, and it will allow said owner of the surface estate a reasonable time, not exceeding twenty-four (24) hours thereafter, within which to elect to take over the hole for the purpose of attempting to make and complete a water well. Lessee agrees to consult with such surface owner as to the location of a potential water zone, without any liability or warranty for such consultation. Upon the owner of the surface estate election, within the specified time, to attempt to complete the well as a water well and complying with all rules and regulations of the Railroad Co"'11ission of Texas and applicable statutes, Lessee will, at its expense, set all plugs to just below the designated water sand as may be required by the Railroad Convnission and thereafter deliver the well to said owner of the surface estate, leaving in such well all surface casing and such intennediate casing as may have been run and set to at least the depth of the designated water sand and thereafter the owner of the surface state shall own the well and shall be responsible for all subsequent matters in connection with the well and for compliance with the applicable statutes and regulations of all regulatory agencies having jurisdiction. Lessee shall have no liability to Lessor in connection with any of the operations which may be conducted by the owner of the surface estate who shall thereafter bear all responsibility and liability with respect thereto. It is expressly understood that lessee shall not be required to furnish any additional casing or other equipment for any well plugged back at the request of the owner of the surface estate under this paragraph. Should the owner of the surface estate elect not to attempt to make a producing water well out of -8- GWB2/dm 124(7) .... • any such hole, Lessee shall plug the well in accordance with all applicable rules, regulations and statutes. 23. It is expressly agreed and understood that for the purposes of this lease the following definitions shall apply: 11 Cormnences 11 - A well shall be deemed corranenced on the date which the drilling bit enters the earth for the drilling of a well. 11 Abandoned 11 - A well shall be deemed abandoned on the day when it is finally plugged as a dry hole. 11 Completed 11 - A well shall be deemed completed thirty (30) days after the day the Lessee sets production casing. 24. Lessor and Lessee agree to limit the conrnencement of actual Ao~ drilling during deer hunting season to 1) those wells drilled in areas which would not disturb deer hunting, and 2) offset wells. If Lessee must co1T1J1ence a well during deer hunting season to perpetuate said lease, then Lessor will either a) not object to the drilling of such well during deer hunting season orb) agree to extend the commencement date for such well to a mutually agreeable date after deer hunting season ends. For the purposes of this paragraph "deer hunting season" shall be that period defined by State law. 25. Nothwithstanding anything contained herein to the contrary, the lessor at any time and from time to time, upon not less than ninety {90) days notice to the holder of this lease, may elect to require the payment of any royalties accruing to such royalty owner under this lease to be made in kind; provided that any expenses incident to the exercise of such election shall be borne by Lessor· and such election shall be for periods of not less than twelve (12) months. Lessor shall only be allowed to take in kind when lessee is producing for his own account. In the event of such an election by Lessor, lessee shall cooperate fully with Lessor in allowing Lessor to take their royalty in kind, including permitting lessor to use Lessee 1 s wellhead equipment and, to the extent that Lessee has assignable rights, the use of Lessee's purchaser 1 s transportation facilities in good faith and not to exceed preva i 1 i ng charges for s imi 1ar services in the industry at the time if Lessee or its affiliates are transporting the gas, -9- GWB2/dm 124( 7) • ....... •• but if Lessee has a third party contract for the transport of said gas, Lessor will be bound by said contract. Should Lessee desire to enter into a gas purchase contract having a tenn of more than one (1) year, then (a) Lessee shall include in such contract a provision that allows Lessor to elect to take its gas in kind and be released from such contract one hundred twenty (120) days after notice, or (b) Lessor may approve of such contract in writing, 1n which event, Lessor may elect to take its gas in kind either at the end of such gas contact or'one (1) year after notice to Lessee, whichever happens sooner. Any equipment installed by Lessor necessary to take in kind must be approved by Lessee and maintained according to Lessee 1 s specifications. If Lessee is unable to obtain a more favorable gas contract because of Lessor's reservation of this election to take in kind, then Lessee may elect to give notice of its intention to sign a gas contract acceptable to Lessee and request that Lessor join in signing same, and if Lessor elects to sign same, then Lessor's royalty share of revenue shall be bound by such contract and Lessor may not elect to take its royalty in kind during the term of such gas purchase contract. DATED this 91Jr day of January, 1988. VAQUILLAS RANCH COMPANY, LTD. VAQUILLAS UNPROVEN MINERAL TRUST By: ;&. E. Wa By: By: -10- GWB2/dm 124(7) • • ...... VAQUILLAS PROVEN MINERAL TRUST CONOCO INC. By~~4 rif1 By: -'l.fd:::;:f;fJ5a,.o Ul...2.22 lotllt 1,136,044 1,IJJ,74Z 1,047,009 1,67J,ZS5 1, IZ1,4JZ 1,756,858 SU- of V!!IYIHI Su,. 2f [!ltt"'ton1 V1!9bt1d Av1c991 Prier 1oul• 5,Z6l,155 1,59 Sttp J, C1\c:11l1tt v1l9bttd 1v1r1111 pclc:t 1111d by Ltnt• to c1lc11l1u roy1lty p1y111nu on 1111 dtllvtrtd to Lt11u or 1ftlllnt1 tnd not for r11111, t!opth•Jenyuy 1000 t!ontb•ltbrupy 12AA Montb•H11rcb 12AA Volu.1 Prlc:• E:r.t1ntlon Yolu111 Prlc• h:t1n1ion Yolu.111 Price Extrn1lon "" S/ltCl • "" S/MC, • "" $/lltl 1n,ooo 1.60 241,0DO 1'0,0DO \,62 U6,&00 155,000 1.sa 2U,900 he 2f vgtu.,,.. SUI! gf fxt1n1 Igo• 719,700 1.60 ll•P ' · Cffip•rt 111lthnd 1Y1r1111 prlct c1lcul1t1d In sup z to the vthht•d •v1r191 ~"''' pcl;e ;1Lc:ul1od In :sup J, S1.60/MCr 11 ' ' ' " ' ' Hllfl Sl.50/MCf 10 M 1ddltl2n.1l roy1tty P•Y••l\U lfl r1q.1.lr•d for thh qu1rt1r, llOUt Vol"'-"• UICI prlcu uud In thl1 1x19f!l• 1r1 u11d for l\\uttrnlon and ••Y not b1 r1H1nlvt of 1c:t111I c~hlona, ' .. ' ' . THE STATE OF TEXAS COUNTY OF WEBB • § § § • This instrument was acknowledged before me on the 9y.f-_,day of January, 1988, by J. O. WALKER, JR., General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership, i-- ~ .. ....';·.· .· ·. ·- ....... ._\.:. " ..•. -·· ·· ......... ~·~ otarY ~600•. s- ~le in and for !~:~ .. ._ The State of Texas. \ : My Coomission Expires .LA (J/?Jj BA LLi::v.J 7- B -'89 ·• '"'· ~ ....... -~. ___ ..... Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 9'1+- day of January, 1988, by E. WALKER QUIROS, General Partner of Vaqu1llas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. • f • ~)i~aQ_Q,,[Y :...~~"',· • _:':!-. ..,. otal'Yublic in and for § ~i The State of Texas. My Co11111ission Expires '7-:3- o0 9 •, ~A-oJRA ~ LlEW \. -~~·:--..... -· Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 't'ff- day of January, 1988, by GENES. WALKER, General Partner of Vaqui11as Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. ~~~~,,;)--' NOtarYUbfc in allor The State of Texas. My Co11111ission Expires 7-3-89 LAat.. Y'A-'ert" Printed/Stamped name of Notary. ·15- GWB2/dm 130(1) EXHIBITC PARTIAL RELEASE OF OIL AND GAS LEASE STATE OF TEXAS § § COUNTY OF WEBB § WHEREAS on June 15, 1974, Vaquitlas Ranch Company, Ltd., a limited partnership acting- therein through its general partners, J.O. Walker, Jr., Gene S. Walker, Evan B. Quiros and E. Walker Quiros, as Lessors, and Continental Oil Company, as Lessee, entered into an Oil and Gas Lease, recorded in Volume 460, Page 324 of the Deed Records of Webb County, Texas, covering 26,622.79 acres of land, more or less, hereinafter referred to as "the Lease,· and; WHEREAS the Lease was revised, more particularly described in that certain Oil, Gas and Mineral Lease Amending Oil, Gas and Mineral Lease dated November 1, 1987, as evidenced by said Memorandum of Amendment to Oil and Gas Lease, dated June 16, 1988; recorded in Volume 1303, Page 879 in the Real Property Records Of Webb County, Texas. WHEREAS the Lease has also been amended from time to time, as reflected in the Public Records of Webb County, Texas, and all references to the Lease herein shall be to the Lease as amended. NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, ConocoPhillips Company, does hereby RELEASE, RELINQUISH and SURRENDER unto the Lessor, all of its right, title and interest and estate in the Lease SAVE AND EXCEPT THOSE LANDS AS MORE PARTICULARLY DESCRIBED ON THE EXHIBIT "A," AND FURTHER DESCRIBED ON EXHIBITS A-1 THROUGH A-36 ATTACHED HERETO AND MADE A PART HEREOF. Provided, however, Lessee shall have and retain full rights of access and all easements of ingress and egress over and across those lands covered by the Lease, including the lands which are hereby released, for the production of oil and gas and operations in the acreage not hereby released, and Lessee shall not be required to remove or relocate any pipelines, utilities, roads, tank batteries, or other surface equipment or installations from any portion of the Lease or lands herein released for so long as same continues to be used for the exploration, development or operation of such portions of the Lease that continue in force and effect This instrument is binding upon and inures to the benefit of the parties hereto, their heirs, successors and assigns. Executed this ) 1 'th day of f.k,,4 ,2014. LESSEE: ::~oc~ Michael P. Rose Attorney-In-Fact Volume: 3577 Page: 454- 530 Ooe#11!M188 Doc Type: PARTIAL RB.EASE OF OIL & GAS LEASE RecOC'd Date: 21251201411:28:17 AM Record By: Mtc 199129-001 Fees·.$330.00. Margie Ramirez Ibarra, Webb County Cieri!. ACKNOWLEDGEMENT STATE OF TEXAS § § COUNTY OF HARRIS § ACKNOWLEDGED BEFORE ME, this 11le>. day of F... 'k!onnJ , 2014, by Michael P. Rose, Attorney-in-Fact for ConocoPhillips Company, a Delaware (Corporation, on behalf of said corporation. 199129-001 OVERALL EXHIBIT "A" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH RETAINEO TRACTS 1-36 CONTAINING A TOTAL OF 21,291.86 ACRES GRAPffiC SCALE ( ltl f[[1 ) CONOCOPHILLIPS COMPANY HOWLAND ENGINEERING AND SURVEYING CO., _ Tl!PEF'll-nlleghn--~ TDPl.$FWrl~No. VAQUIUAS RANCH RETAINED TRACTS BASE HAP T81~N.-A_,.,. LMBl£S. l!Cl'll\MD Elfl)ljEElllH(: N10 ~C CO., 1iC. >SSUJtS NO RESPONSIBIUTY TO LOCAlt PPEl.11£ Oii CAa£ ~CS. CHECKED BY: J.S. =~H:c~RE~~~~~~E/::.O!At rn: O'ME1!SHP Oii JOB No. 221Ji-1J c:oPmOfT HOWl.IHJ OICKV!tlr:l N10 ~ CO., lt\HCl'MNID\i\IR\IO'WG DUAA™ltll\lob>\NIN1lJl·lJ\271ll·lJ.do.g. IJl/201• 2:1C:IC ;>M, , . _ POf HOWLAND ENGINEERING AND SURVEYING CO. EXlllBIT "A-1" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 199129--001 RETAINED TRACT 1 (VAQUILLAS RANCH WELLS A-3 No. 61, No. 67, No. 199, No. 200, & No. 203) 640.00 ACRES A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1955, G.C. & S.F. R.R. CO., Abstract 1328, Webb County, Texas, and being more particularly described as follows: BEGINNING at a foWld Y:i." iron rod next to a fence comer, which bears N 56°51 '30" W, a distance of 886.46 feet, from the Vaquillas Ranch A 3 No. 199 Well; THENCE, N 89004'24" E, along an existing fence line, a distance of392.77 FEET, to a point for a deflection right; THENCE, N 89°17'59" E, continuing along said existing fence line, a distance of 1,379.80 FEET, to a point for a deflection right; THENCE, N 89042'30" E, continuing along said existing fence line, a distance of 695.33 FEET, to a found 1 Y:i." pipe at fence comer, for the Northeast comer hereof; THENCE, S 00°20'36" E, along an existing fence line, a distance of2,S33.32 FEET, to a point for a deflection right; THENCE, S 00°19' 10" E, continuing along said existing fence line, a distance of2,829.52 FEET. to a point for a deflection left; THENCE, S 00°20'17" E, continuing along said existing fence line, a distance ofl,697.58 FEET, to a point, for the Southeast corner hereof; THENCE, S 89°39'43" W, a distance of 4,334.37 FEET, to a point for the Southwest comer hereof; THENCE, N 00°38'14" W, a distance of 4,273.09 FEET, to a point under an existing fence line, for an exterior comer hereof; j p THENCE, N 89°20'19" E, along an existing fence line, a distance of 1,910.21 FEET, to a fowid Vi" iron rod at fence comer, for an interior comer hereof; THENCE, N 00°39'19" W, a1ong an existing fence line, a distance of3,668.08 FEET, to a point for a deflection right; THENCE, N 00°33'14" W, continuing along said existing fence line, a distance of96.40 FEET, to the POJNT OF BEGINNING, containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET! OF2 H:\HOWLAND\SURVEYING DEPARTMEN1\lobs\20\3\l2131.l-13\22131.1-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue 1 P.O. Box451128 (78045) i Laredo, TX78041P.956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 l TBPLS Arm Registration No. 100464-00 EXHIBIT "A-1" CONOCO PHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001. N RETAINED lRACT 1 (VAQUIUAS RANCH A-3 WELLS No. 61, No. 67, No. 199, No. 200, & No. 203) 640.00 ACRES WEBB COUtm', TEXAS SURVEY 294 N l04-•24• E N 89"17°9• E SURVEY 2'14 -- --- -- ABSTRACT 2227 --'-'~~-- ~")------: Found 1/Z' H 00"33'14• W Iron Rod 98.40' 392.Tt 1,379.80' -.:::..;;;;~~+-"=----,_..;;;;.;;;..~ '-..~,. _r.,__10o VAQUIUAS RANCH Reglsltolb\Ho..1-..00 ~ 0 = HORIZONTAL WE:Ll stJRr>.a: LOCATION WW. UHIT UN£ 04-05-lJ 10-1&-\J 7&15N._ ........ ~lX.nGlt P.05&.122.+ltl www.howlundc::ornpanltt!!.eom """ "'" ""' SURVEY UNE WARNING: a>.s1S OF BEAAINC: C.?.S. Tx. South 2<>1"1c. NAO. 27. 1NS l'lAT "'IV llOT .51-JJW .OU CROss:tlCS ~ PF'£lJ!-IES CR Cla!S. ~D ENCINtEJllHG Nf:J SUIM:'T"llC CD.. INC. ASSUMES HO llfSPOHSltlUTY TD ~Tt ~EU'< OR CA< \ I 1 Foundt ' ' I I i• Iron Rod '\ I VAQUILLAS _A_ ~.1 O Fenca Comer ', l VAOUILLAS RANCH RANCH V -------~~~--------0 VAOUlLLAS RANCH . -Q-A-5 No. 205 (BHL) A-5 No. 166 ~I ro·1 A-5 No. 205 VAQUILLAS RANCH-¢'. .~.1 (SHL) A-5 No. 2.30 - 0 (BHL) · ':n 1 VAQUILLAS RANCHO I') "' "'"' ·"' 11; SURVEY 2057 A-5 No. 230 ~"'O i' ~o:"' "' "'"'·~ ~..; C.T. & M.C. R.R. CO. (SHL) ~~~ ABSTRACT 965 "'""""'.... ' WEBB COUNTY. TEXAS 1: "'cJ !:] ci ~ _n_ VAQUILLAS V RANCH A-5 No. 126 ~ J VAOU!LLAS i) • RANCH • A-5 No. 118 I• f -~-:;:-0~ ~ SURVEY 2060 • L.F. UPDEGROVE ., "' .,00::;;; li ABSTRACT 3330 I• , ~~= >--Cf.)~ A VAOUILLAS [;;' "' GRAPHIC SCALE ¥. RANCH A-5 No. 40 : NE 1/4 SURVEY 2060 I : !5 ~ &; T I• R.D. GUINN ABSTRACT 3331 • en"'!:] ( ti FEET) I heh • lDCOFl. I t£GEND R...,!slon 0<1!• HOWLAN~ __ ,_ .... "' HORIZONTAL w:EtL SUllrAC£ 1.0CJiTlOH ,' 04-12 \J OS-11 \J ENGINEERING AND SURVEYING CO. TBPEArmRfO'll' AU. mosstlCS Of Pl'WIC OR C\ll.ES. HOOl\NIO [NOll££JIN; ,tllO SIJR\ltYlllG CO., INC. ASSIJloC5 NO RESPOIG!llU!Y TO l..OCATE PIP£ll'< OSI CMllL CllOSSN'lS. t<0 C>J,111 IS ll£R£B"I' WD£ R.E~ CIMIEHT OR =wl.. SUIT~ f'El: OWMERSHI' OR FlEW DATE '" """ "" PAGE" '" DRAWN BY: CHECKED BY: LAF./S.LM. J.S. lt$SCll. !)llS DAAJrllfC w.D!: EXCUISMl.Y ftlR C0H0coPt-.u>s Cl)UIWN. JOB No. 221J1.2 lJ ~ ~o [N(;»lttAINQ NrJ ~c co., 1HC. 201JC SHEET: 2 OF 2 HOWL.lt\~~D; ENGINEERING AND SURVEYING CO. EXHIBIT"A-3" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 3 (VAQUILLAS RANCH A-5 WELLS No. 40, No. 97, No. 101, No. 108, No. 110, No.113, & No. 118) 515.26 ACRES A TRACT OF LAND CONTAINING 515.26 ACRES, more or less, being out of the Vaquillas RJmchLease 199129-001, 26,622.79 Acres (Called), situated in Survey 2059, C.T. & M.C. RR. CO., Abstract 984, acd Survey 2060, L.F. Updegrove, Abstract 3330, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 11°25'37" W, a distance of 2, 799.89 fee~ from the Vaquil!as Ranch A-5 No. 108 Well; THENCE, EAST, a distance of 6,540.37 FEET, to a point for the Northeast corner hereof; THENCE, S 01°14'46" E, a distance of 1,214.36 FEET, to a point for an exterior comer hereof; THENCE, S 88°51'20" W, a distance ofl,363.69 FEET, to a point for an interior comer hereof; THENCE, S 00°34'04" E, a distance of 1,364.74 FEET, to a point for an exterior corner hereof; THENCE, S 89°54'17" W, a distance of 2,712.87 FEET, to a point for an interior comer hereof; THENCE, S 00°23'37" E, a distance of24.86 FEET, to a point for a deflection left; THENCE, S 00°33'33" E, a distance of2,796.79 FEET, to a point under an existing fence line, for the Southeast comer hereof; THENCE, S 89°25'42" W, along an existing fence line, a distance of2,494.30 FEET, to a point for a deflection right; THENCE, S 89°37'21., W, continuing along said existing fence line, a distance of60.97 FEET, to a point for the Southwest comer hereof; THENCE, N 00°14'54" E, a distance of5,457.34 FEET, to the POINT OF BEGINNING, containing 515.26 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 11:\HOWLAND\SURVEYlNG DEP ARTMEN1\Jobs\2013\22131.3-13\2213l .3-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue . P.O. Bo)( 451128 (78045) ; Laredo, TX78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 : TBPLS Firm Registration No. 100464-00 EXHIBIT "A-3" CONOCOPHILLIPS COMPANY VAQUILI.AS RANCH LEASE 199129-001 N RETAINED lRACT 3 (VAQUILI.AS RANCH A-5 WELLS No. 40, No. 97, No. 101, No. 108, No. 110, No. 113, & No. 118) 515.26 ACRES WEBB COutfTY, lEXAS SURVEY 2057 SURVEY 1953 C.T. & M.C. R.R. CO. G.C. & S.F. R.R. CO. ABSTRACT 985 ABSTRACT 1329 A VAOUILLAS y RANCH A-5 No. 126 -- -~--..-----------+--'BIST='--~-"o.... ""'"-'"$1';.;...._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _<>- - - -- '' l' -¢- '\ ' VAQUILLAS VAQUJLLAS '' CONOCOPHILLIPS COMPANY RANCH A-5 No. 101 VAQUILlAS RANCH LEASE 199129-001 1-.£ 1-" ;,-: ;:!: I 26,622.79 ACRES (CALLEO) A-5 No. 116 -¢- \''• NI RETAINED !51!5.26 ACRE UNrT SURVEY 2060 \'ij. I L.F. UPDEGROVE \!1, t ABSTRACT 3330 \£ I s 88'!51"20. w ll \t-> : VAOUILLAS 1,383.69' 0 0::; I RANCH A ~111~ . \~ ,.\~.:' I SURVEY 2059 C.T. & M.C. R.R. ABSTRACT 984 co. I A-5 No. 40 ¥ ILi !to'- or- SW!/40F NE 1/4 : ru§:._. ~zu ~ ~ '!t_ SURVEY 2060 1 > Ul Ci? •• \I < I WEBB COUNTY, TEXAS I !! ?!, R.D. GUINN I 0: .( E-< U) - ABSTRACT 3331 1 ~ i;ri ~ ! .1~ • ftNCE UHE 78l~H.e.t.llA...,. Lot.io,l)'..nol1 P.llM.Tn.4411 www.howtandcomp.1mles.com ' - - - - - - - .. Tits - • • - ' " S U R V E Y LINE 10-1a-1J ~ BASIS Of BEARING: G.P.S. Tx. South Zon~. NAD.-27. FIELD lli\TE PAGE s MS Pl.Ar 11.llS Pl>.T IAAY llOT SHC7il' 111..L CROSSllfOS (1' PIPllllts Oii CAii.ES. 1tOWV.HO CNGl~O No. 30, & VAQUIL!AS STATE G.U. No. 5) flEtO OAlE BOOK PAC[{• DRAWN SY: s.1.1.1. NID SlllV£nNQ CO., I«:. /.SSUllE!i NO ~E$PONSll!IUJY TO LDC.\TE PIPD..l;t O!t Cla£ CltOSSH:S. H/A CHECKED SY: J.S. "" N/A ~~r:s:HG%~~~~=-W~Rfct~CR.ll rtE O'llNERHP 01t 640.00 ACRES JOB No. 221J1.<4-1J COPTRICHT HOWIJ,NO OfQllEDIUfCl NIO SUIMYWQ CO, !NC. 2013C WEBB COUNTY, TEXAS SHEET: 2 Of 2 lt\How.AllD\'IUll\ltWll; OIPARTMlNl\Job<\201Nl1lL4-ll\211lL<-1ldlog. l/!,l70l~ 105.!.WJ.U. Mobo POI' HOWLAND ENGINEERING AND SURVEYING CO. EXHIBIT "A-5" FIELD NOTES FOR CONOCOPHILLIPS COMPANY V AQUllLAS RANCH LEASE 199129-001 RETAINED TRACT 5 (VAQUllLAS RANCH CO., LTD. WELLS No. 3, No. 14, No. 41, No. 45, & No. 69,) 640.00 ACRES A TRACT OF LAND CONTAJNING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 865, H. & G.N. R.R. CO., Abstract 1438, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point under an existing fence line which bears N 24°04'13" W, a distance of2,161.34 feet, from the Vaquillas Ranch Co., LTD. No. 69 Well; THENCE, N 89'30'43" E, partially along an existing fence line, a distance of 5,303.50 FEET, to a point for the Northeast comer hereof; THENCE, S 00°28'34" E, a distance ofl,802.66 FEET, to a point for a deflection right; THENCE, S 00°09'23" E, a distance of2,489.65 FEET, to a point for the Southeast comer hereof; THENCE, S 89°35'00" W, a distance ofS,256.20 FEET, to a point for the Southwest corner hereof; THENCE, N 00°14'17" W, a distance of3,677.21 FEET, to a point for an interior corner hereof; THENCE, S 89°45'43" W, a distance of 44.35 FEET, to a found l" pipe at fence corner, for an exterior corner hereof; THENCE, N 00°37 150" W, along an existing fence line, a distance of 1,608.36 FEET, to the POINT OF BEGINNING, containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET! OF2 H:\HOWLAND\SURVEYING DEPAR1MENJ\JabsUO 13U213 J.5-13U2131.5-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451128 (78045) ! Laredo, 1X 78041 P. 956.722.4411 F. 956.722.5414 T6PE Firm Registration No. F-4097 TBPLS Firm Registration No. 100464-00 EXHIBIT "A-5" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 1N99129-001 - RETAINED "TRACT 5 (VAQUIUAS RANCH CO., LTD. WELLS No. 3, No. 14 No. 41, No. 45, & No. 69) 640.00 ACRES WEBB COUNlY, TEXAS SURVEY 2238 P.O. BODE I I SURVEY 866 FRANCISCO CONTRERAS ABSTRACT 2065 ABSTRACT 3016 I ------ SURVEY 2336 _, __ , __ ,_ J.E. ANDERSON ABSTRACT 3183 \ ---- t ... --- -- -------- N 89"30'-43• E "" S,303..50' ~ \\~.,o ! {Cl "' j§ a: "'., ~ ~i .: "' .... "' I \""; VAQUILLAS RANCH CO. LTD. No. 45 ~ ~z !! ,., \V, \i:.\1. i~tb.~ Till'l.Sfrn.~No.I~ 7e151t._/'o._ t.a..do,lX.78001 P.115a.722Ml1 - - ' - - = ftHCE UHE <4 11 27-13 www.howlandcompankls.com - - - - - - - •TIES " .. '" SURVEY UHE WARNING: SI.SIS OF BEARING: C.P.S. Tx. South :Zone, N.A.O. 27. THIS l'Ull llAY HOT $HOW ALL alOSSf'ICS Of PIPQJN£S OR CA8.tS. IKN\NICI E>IGll~ AAD ~I: en.. lie. ~ NCI l!C'J'CINSlllUIY TO l.CICA.TE Pf'UK Cit eoa£ D!OSSINCS. flEW DATE ,,, ''°' ,,, PAGEi~ DRAWN BY: LAF./S.l.r.I. NII Cl.AIW IS HEN£Erl' IMO( R£lW!lllH(l i;:mR£HT OR ,oCTU.1,1. SUIU'...::C/l.IHERN. FU OWNERSlfP OR l.£SSOR.. 1lltS OR>.11'111: WDE DCClilSMl.Y Rl!I CONOCOl'HUJPS IXlMP>HI'. "" CHECKED BY: J.S. JOB No. 221.ll.5-13 COP'l'RlCHT HOWl.AACI ENl:INEE!tliG N«l SlJIMW«O CO •• N;. 20130 SHEET: 2 or 2 HOWUJ\N[l) ENGINEERING AND SURVEYING CO. EXHIBIT "A-6" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 6 (VAQUILLAS RANCH CO., LTD. WELLS No. 31, No. 56 & W.R. CARR, ET AL No. 1) 620.58 ACRES A TRACT OF LAND CONTAINING 620.58 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called1 situated in Survey 1635, T.C. R.R. CO., Abstract 1797; Survey 865, H. & G.N. R.R. CO., Abstract 1438; and Survey 467, A.B. & M., Abstract 799, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 67°46'35" W, a distance of 4,196.87 feet, from the Vaquillas Ranch Co., LTD. No. 31 Well; THENCE, N 88°55'14" E, a distance ofl,040.09 FEET, to a point under an existing fence line, for a deflection right; THENCE, N 89051'04" E, a distance of3,989.57 FEET, to a found I" pipe at fence comer, for a deflection left; THENCE, N 89°45'43" E, a distance of 44.35 FEET, to a point for the Northeast comer hereof; THENCE, S 00°14'17" E, a distance of3,677.21 FEET, to a point for an exterior comer hereof; THENCE, S 89°35'00" W, a distance of 44.35 FEET, to a point for a deflection right; THENCE, S 89054'09" W, a distance ofl,767.82 FEET, to a point for an interior comer hereof; THENCE, S 00°17'52" E, a distance of3,432.25 FEET, to a p_oint for a deflection left; THENCE, S 00°38'54" E, a distance of 54.14 FEET, to a point for the Southeast comer hereof; THENCE, N 89°49'18" W, a distance of2,249.93 FEET, to a point for the Southwest corner hereof; THENCE, N 00°10'41" E, a distance of54.13 FEET, to a point for a deflection left; THENCE, N 00°21'54" W, a distance of 1,361.31 FEET, to a found fence corner post, for a deflection left; THENCE, N 00°30'20" W, aJong an existing fence line, a distance of 1,631.92 FEET, to a point for a deflection right; THENCE, N 00°28'47" W, continuing along said existing fence line, a distance of 882.77 FEET, to a point for a deflection left; THENCE, N 00°29'28" W, continuing along said existing fence line, a distance of 1,092.72 FEET1 to a point for an interior corner hereof; SHEET! OF3 www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box451128 (78045) ; Laredo, lX 78041 P. 956.722.4411 F. 956.722.5414 TBPE Finn Registration No. F-4097 , TBPL5 Firm Registration No. 100464-00 Ho.aAli[] /~ [fc..~l~':c,;;~-; 'WW:f~~J:d'\~JP:-:-:-::~· ENGINEERING AND SURVEYING CO. Continuation THENCE, S 88°55'14,, W, a distance of 1,965.93 FEET, to a point for an exterior comer hereof; THENCE, N 01°04'46" W, a distance of2,125.56 FEET, to the POINT OF BEGINNING, containing 620.58 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET2 OF3 H:\HOWLAND\SURVEYING DEP ARTMENl\Jobs\2013U2 l 31.6· \ 3\2.21 J 1.6-13.doe www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451128 {78045) Laredo, 1)( 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 i TBPLS Firm Registration No. 100464-00 EXHIBIT "A-6" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 6 (VAQUIUAS RANCH CO., LID. WELLS No. 31, No. 56 & W.R. CARR, ET AL No. 1) 620.58 ACRES WEBB COUNlY, TEXAS I SURVEY 1838' FRANK BARRETT ' ABSTRACT 2137 ' ~ I • I SURVEY 2336 J.E. ANDERSON ~ I ' ' ABSTRACT 3183 SEE VAQUlll..AS RANCH CO. LTD. No. 69 (SHL) W.R. CARR. ET Al No. l -¢- CONOCOPHlLUPS COMPANY SURVEY 1632 VAQUIUAS RANCH LEASE 199129-001 FRANK BARRETT 26,622. 79 ACRES (CAUED) ABSTRACT 2140 RET~ED 820.SS ACRE UNrT' o---------.(J)o- w ----w--. s B9"54'oo• 5 89'M'oo• 1,767.82' 44.35' z SURVEY 1683 I DETAIL: N.T.S. N 89"4&'43. E i r44.30' ..'" ' ~. ill C.C.S.D. & R.G.N.G. R.R. ABSTRACT 1115 co. il "'I ii~ ~VAOUILLAS RANCH Found 1") S ..:1 l c~~. \~· Plpoc!~~" z 1' "' ~•--•--•--•--•--X-y I µ \Found Fenca Com--::-:;::~:::::;-;::""."."'::'"::~~-~"- S 00'38'54" E 54.13' N 89"49'18" w ... 2,249.93" I 154.14' VAOUILLAS RANCH CO. LTO. A. B. & M. No. JJ ST (BHL) ABSTRTACT 799 -¢- ' GRAPHIC VAOUJLLAS RANCH CO. LTD. No. 71 VAQUIL~! !.00 ~ --- •J-' ~ 500 I loch • 1ooan. T c~Cr~. No. SJ I• -¢- VAOUlLLAS RANCH CO. LTD. No. 5 LEGEND Rnl1lon HOWL.A~~ = M--17-13 0 HOR!ZOKTAL WEU SURFACC L.OCATIOH ENGINEERING AND SURVEYING CD. -¢- • WW. 06-06-1J 08-14-13 Tl!PE Fhn llo;IMdoo HO>. ~1 T8P\..S Fhn ~ ...,_ IOOolM«I -~,--: ~1.R(Ji£ 7~1'N.llallldllvm>110 Ls-._TX.7111M1 P.111:16..72:2.4411 10-18-tJ www.howlandcompanles.com - - - - - - - = TIES .. ,. = SURV£Y Ult( 11-27-1J WARNING: BASIS Or BOOING: G.P.S. Tx. South Zone, NAD.-27. n-=> FU.l KAI'" NOT SllOllf JU o:ICJSSlj(;S Of' PlPEIJ'IES 00 eoa.tS.. ltl:l'fl'V'ltl DIC»l(£JllNc; FlUD DATE "o' PAGE ~l DRAWN BY: LAF./S.1.ld. "'' "'' CHECKED SY: J.S. JOB No. 221Jl.6-IJ SHEET: J or J Ho-1Q1~ ilir S~-~[f~; 'WW~t£-::J.Li~r.~ '-'.21 1 ~;----··/ ENGINEERING AND SURVEYING CO. EXHIBIT "A-7" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 7 (VAQUILLAS RANCH CO., LTD. WELLS No. 5, No. 8, No. 23, No. 25, No. 33 ST, & No. 64) 639.48 ACRES A TRACT OF LAND CONTAINING 639.48 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1683, C.C.S.D. & R.G.N.G. RR. CO., Abstract 1115, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 09°35'49" W, a distance of 1,417.68 feet, from the Vaquillas Ranch Co., LTD. No. 64 Well; THENCE, N 89°54'09" E, a distance ofl,767.82 FEET, to a point fora deflection left; THENCE, N 89°35'00" E, a distance of3,454.97 FEET, to a point for the Northeast corner hereof; THENCE, S 00'02'16" W, a distance of 4,514.84 FEET, to a point for a deflection left; THENCE, S 00°56'49" E, a distance of845.79 FEET, to a point for the Southeast corner hereof; THENCE, S 89°46'53" W, a distance of 2,479.20 FEET, to a point for a deflection right; THENCE, S 89°59'21" W, a distance of2,715.08 FEET, to a point for the So_uthwest comer hereof; THENCE, N 00°38'54" W, a distance of 1,910.27 FEET, to a point for a deflection right; THENCE, N 00°17'52" W, a distance of3,432.25 FEET, to the POINT OF BEGINNING, containing 639.48 acres of land, more or Jess. Basis of Bearing: G.P.S., TIC South Zone, NAD-27 . ·;~.- SHEET 1 OF2 H:\HOWLAND\SURVEYl'NG DEP ARTMENl'JohJ\2013\22131. 7· 13\221J1.7-13.doc www.howlandcompanies.com 7615 N, Bartlett Avenue 1 P.O. Box451128 (78045) ; Laredo, 1X78041 P. 956.722.4411 I F. 956.722.5414 TBPE Finn Registration No. F-4097 TBPLS Firm Registration No.100464-00 EXHIBIT "A-7" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 7 (VAQUILLAS RANCH co., LTD. WEllS No. 5, No. 8, No. 23, No. 25, No. 33 ST, & No. 64) 639.48 ACRES WEBB COUNTY, TEXAS I -¢-VAQUILLAS RANCH Ji CO. LTD. No . .31 ' r.: ' ;:1 I • SURVEY 1635 I' j~'f!i J T.C. R.R. co. SURVEY 665 ABSTRACT 1797 • H. & G.N. R.R. co. . I' ABSTRACT 1438 VAQUIUAS RANCH POnft OP;) 1 llllllNlllllC CO. LTD. No. 3-¢- N 89'54'09• E ,.. 1,787.82' I N 89'35'00- E ,.. 3,454.97' ---- N 09'35'49" W~ ''I lII 1,417.68' I I \ .- I lia lJi!!. SURVEY 1683 C.C.S.D. & R.G.N.G. R.R. co. !-e;,,,. II II ABSTRACT 1115 ~ VAQUILLAS RANCH WEBB COUNTY, TEXAS CO. LTD. No. 64 " ' VAOUILLAS RANCH-¢- CO. LTD. No. 2J ! ~ VAQUILlAS RANCH ~ 8::.:: "' :g CO. LTO. No. JJ ST §" ' ""'"' z O (SHL) CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 26,622.79 ACRES {CALLED) ." m l; -o ~ §1t> !5,;. 01b; RETNNED 639.48 ACRE UNIT s "' "' "'< " --------!:; VAOUILlAS RANCH CO.~ LTD. No. JJ ST (BHL) s VAOUILLAS C~N&~.-¢- C> No. 53 ' -¢- ii;" :------· VAOUILlAS RANCH VAOUILLAS RANCP- CO. LID. No. 5 -¢- CO. LTD. No. 8 ~ VAOUILLAS RANCH SURVEY 467 A. B. & M. ~ CO. LTD. No. 25 !:DI ~I": ABSTRTACT 799 z ~~ S 89"9'21· W ,.. 2.71S.08' I s 89"48'53. w- 2.479.20' " • ' • • SURVEY 1684 ' ' ~ I• I' D. B. GRACY ABSTRACT 2910 I ~oco - ... "'"'- >-a:; u ' • SURVEY 1684 •' [::!"« 1----------- ___J G.T. BLACK ABSTRACT 2698 I• "'-~ p~Cl'l ., .. <;;] GRAPHIC SCALE ' ~ -- )or• ~~ •J-' ( IN ft:ET) I lnc:h • lOOOR. ·~ I =I I• LEGEND R•vlston Dola HOWLANf3 ENGINEERING ANO SURVEYING CO. 0 -¢- • UNIT UNE = HORIZONTAL waL SURf'AC( l.OCA.TION o~ ' ' 04-06-13 0~17-13 06-06-13 •' TI!PE Fm Rtp:lr_, No. F-«m TBPL.S Arm~ Ne. 100ol&4-0CI _ , _ =FDIC£Ul'lt: tr.nN.IW'6ti;A-.o ......,._ lX. J'e.9l£S- HCN!J.110 DIJ!S>F OR LLSS0R. l1ll:5 DRA1nHC w«: fXCl.USMl.Y RIR IUIUNCTON ~ 0A<: CO. IP. '" CHECKED BY; J.s. JOB No. 22131.7 COP'tRICl!T \\O'Wl\H ... "' "'u~ "' VAQUIUAS RANCH-O- RANCH en ~m CO. LTD. No. 29 ST STATE G.U. ci (BHL) No. 15 >--· .. --••• {BHL) o § 0 A V 1&1 "' - co>oci z CONOCOPHILLIPS COMPANY -¢- VAOUILLAS «>UN ~~t; VAQUIUAS RANCH LEASE 199129-001 VAQUILLAS RANCH RANCH 26,622.79 ACRES (CALLED) ~"'.~ CO. LTD. No. 61 STATE G.U. RETAINED &40.00 ACRE UNIT No. 15 (SHL) "!De-< :::::> t:i 00 "' ~ "' ·------ SURVEY 46? A.B. & M. >--------- ABSTRACT 799 WEBB COUNTY. TEXAS ., 1o t ' ~ z VAOU!LLAS RANCH-¢- STATE C.U. No. 1-R I "' -:Je.. >-"' u "'"' "'"'"'"' M'N«. JOB No. 2ZU1.6-1.l COl'l'RIQfl llOWINIO El!C1!£ERf!G Nil SUIM.YNl 00., J'IC. 2013CI SHEET: 2 OF 2 HOWLA~~D ENGINEERING AND SURVEYING CO. EXHIBIT "A-9" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 9 (VAQUILLAS RANCH CO., LTD. WELLS No. 39, No. 40, & No. 46) 635.23 ACRES A TRACT OF LAND CONTAINING 635.23 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1633, G.C. & S.F. R.R. CO., Abstract 1323; and Survey 467, A.B. & M., Abstract 799,Webb County, Texas, and being more particularly described as foUows: BEGINNING at a point which bears N 66°46'35" W, a distance of 1,328.20 feet, from the Vaquillas Ranch Co., LTD. No. 40 Well; THENCE, N 89°30'45" E, a distance of2,492.56 FEET, to a found fence corner post, for a deflection right; THENCE, N 89°32'27" E, along an existing fence line, a distance ofl,572.15 FEET, to a point for a deflection left; THENCE, N 89°29'25" E, continuing along said existing fence line, a distance of 2,016.77 FEET, to a point for the Northeast comer hereof; THENCE, S 00°33'08" W, a distance of 1,348.09 FEET, to a point to an exterior corner hereof; THENCE, S 89°34'30" W, a distance of80.70 FEET, to a point to an interior comer hereof; THENCE, S 00°19'36" W, a distance of 3,274.41 FEET, to a point for the Southeast corner hereof; THENCE, S 89°52'00" W, a distance of 5,977.93 FEET, to a point for the Southwest corner hereof; THENCE, N 00°06'46" E, a distance of4,585.15 FEET, to the POINT OF BEGINNING, containing 635.23 acres of land, more or less. Basis of Bearing: G.P .S., TX. South Zone, NAD-27 SHEET I OF2 H:\HOWLAND\SURVEYmG DEPARi'?'>fENNoln\2013\22131. 9-13\22131.9-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue 1 P.O. Box 451128 (78045) i Laredo, lX 78041P.956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 TBPLS Firm Registration No. 100464-00 EXHIBIT "A-9" CONOCOPHILLIPS COMPANY VAQUILU\S RANCH LEASE 199129-001 N RETAINED TRACT 9 (VAQUIUAS RANCH CO., LTD, WELLS No. 39, No. 4-0, & No. 46) 635.23 ACRES WEBS COUNlY, TEXAS :'·I ., -----, SURVEY 1631 G.C. & S.F. R.R. CO. I! I j :1 A ABSTRACT 1317 SURVEY 1632 '' 1·.l FRANK BARRE'IT ABSTRACT 2140 I ,I I i . H 89"32'2r E N 89'29'25" E 't;::::::.:~~-;....::"°:':46~::.;:~N:::::..:.. ~.?-""':.:-..:::::::::;i;:::::.:•~•~'=':"':2.::;.;l~;O;•:.::::o.:•:.:•..;:::::..;:•~2:.;0;1;•·:"::;.;'-:.:•..:::::::}- . t - ........ }{ .... ~fi't6, 1.J2;;~· II' l· Ira , _ _ _ ,_ -<'o"'l ... .._, I ~---,-.222'----=¢-VAQUILLAS RANCH SURVEY 1633 CO. LTD. No. 40 G.C. & S.F. R.R. CO. ABSTRACT 1323 WEBB COUNTY, TEXAS ----- "' -¢-VAQUJLI.AS RANCH s 89".34'30. w CO. l TO. No. 39 60.70' CONOCOPHILLIPS COMPANY VAOUILLAS RANCH LEASE 199129-001 26.622.79 ACRES (CALLEO) RETAINED 635.23 ACRE UNrr -¢-vAaUlllAS RANCH CO. LTD. No. 46 I'---- ~ "' "' ..,.,.,... ,['- 0 w ... ~"'~ > .... "' " ,..... s 89"52'00" 5,9nSJ' [3~:;: ' . 1-.00 Til1,~Botto!IA..-.. i.a.-,T.ll.1Dl1 P.115&.n2M11 FnlCE LINE 10-18-13 www.howlondc:ornpanles.com n" SlJRVtY UHr ~ BASIS OF BEARlNG: G.P.S. Tx. South Zona, NAD.-27. 11WS Pt.Ill ""'T H!ll' StEll MJ.. Cl!OSSllC:S Df PIP£l.JNCS OR C'8.£S. HOllll.JiliO EliGll LDC.I.IE ~ ~ c:oa.I: CROSSllfGS. ~ni:s~~~~~~fll~O>I FlELO DATE " '"" ,,. . DRAWN BY: LAFJS.l.M. CHECKED BY: J.S. CCIP'lll!tl'1" "°"""""° ~ AHO SUi\01tlG CO., t-H;, 20130 JOB No. SHEET: 22131.9 IJ 2 OF 2 HOWlMANlt~ ENGINEERING AND SURVEYING CO. EXIDBIT "A-10" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 10 (VAQUILLAS RANCH CO., LTD. WELLS No. 27, No. 43, No. 44, No. 59, No. 73, No. 74 & VAQUILLAS RANCH A-2 No. 6) 640.00 ACRES A TRACT OF LAND CONTAlNING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 468, N.B. Gossett, Abstract 2255; North V, of Survey 166, A.C. Gaeth, Abstract 3142; and Survey 1634, N.B. Gossett, Abstract 2252, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 29°17'05" E, a distance of2,149.76 feet, from the Vaquillas Ranch Co. Ltd. No. 44 Well; THENCE, S 00'31'13" E, a distance of3,087.94 FEET, to a point for the Southeast corner hereof; THENCE, WEST, a distance of7,909.49 FEET, to a point for the Southwest comer hereof; THENCE, N 00°00'03" W, a distance of 1,852.04 FEET, to a point for an interior comer hereof; THENCE, S 89°43'42" W, a distance of3,039.93 FEET, to a point for an exterior comer hereof; THENCE, N 00°12'49" W, a distance of 1,198.42 FEET, to a point for the Northwest corner hereof; THENCE, N 89°43'43" E, a distance of 10,925.96 FEET, to the POINT OF BEGINNING, containing 640.00 acres of land, more or less. :f. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYING DEPAR'IMENNobs\2013\22131. I l-13\22131.11-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue i P.O. Box451128 (78045} I Laredo, TX78041 P. 956.722.4411 F. 956.722.5414 TBPE Finn Registration No. F-4097 t TBPLS Firm Registration No. 100464-00 .... ___ .. .. .. .. .. .. 1 l• -¢- • SURVEY 1684 ~ G.T. BLACK VAOUILlAS RANCH CO. LTD. No. 20 • ABSTRACT 2898 SURVEY 1834 N.B. GOSSETT • I• VAQUILLAS RANCH CO. VAQUILLAS RANCH CO. I• <:~P] LTD. No. 11 ABSTRACT 2252 LTD. No. JO -¢- VAQUIUAS RANCH-¢- • -¢- ~ • I STATE G.U. No. 5 \BIGllOOllG j N 8V43'43" E ... 10,925.96' I j • I I " •• ' • I ~I ''' ~/ '-··--··- ~i CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 I• VAQUlLLAS RANCH CO. LTD. No. 73 ''' """':,' ll:: 26,622.79 ACRES (CALLED) -¢- " ~' z RETA!~ &40.00 Jal£.. UNrT ··-··-··-··-i • -¢- VAOUILLAS CO. LTD. No. 59 RANCH bl ~· ~· ' 4/ • .~/ f> I I .. ~ VAQUILLAS -¢- ''' VAQUILLAS RANCH s 89""43'•2• w ,.. 3,039.93' ~I RANCH CO. CO. LTD. No. 43-¢- I ~ i.' I LTD. No. 24 I SURVEY 468 ' I I 0 NORTH 1/2 SURVEY 1868 A.C. GOETH ABSTRACT 3142 II I -¢-vAQUJLLAS RANCH CO. LTD. No. 74 N.B. GOSSETT ABSTRTACT 2255 WEBB COUNTY, TEXAS VAQUILlAS RANCH CO. LTD. No. 44 '" -¢-----!,Q.Sf ___ ' ;"' ;;; _,,, ; ro~~ u,.. .f.D >- . t; SURVEY 1665 ~ I -¢-VAQUlllAS RANCH ll [;'"'"" ,,,"'[:: 8 VAQUILLAS RANCH CO. LTD. No. 27 "' -¢- C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 1124 ll z A-2 No. 6 I I I '"'"" "' u .';';] ..; I '-r VAQUILLAS RANCH WEST ,... 7.909.49' -¢- • CO LTD No 32 -¢- I VAQUILLAS I VAQUILLAS RANCH I I RANCH CO L .. ---------··--·. - .. _ :o~ :_": _'_j_t~o- ~'- .. I I 500 Po;;•.- -~~ GRAPHIC SCALE ·-I ,_ I I • (ti rt:ET) I Inc~ • 1000fl I EXHIBIT "A-10" LEGEND Ravl•!on "'" HOWL.AND ENGINEERING AND SURVEYING CO. CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 0 -¢- = HORIIONTl.1. W£U •WW. SURFAtr tOCAOON ' ' 04-1.:l:-1J 05-17-\J 00-00-13 •' TBPEFkm~No.F-oCOV'I lBPLllFm.~IC>.1CXMS4-0:l • UNIT UH[ _ , _ . , rEHCE UH£ 78'5N.llullollA...,. u..da,TX.76041 P.~r.,7Z2M11 10-U~-IJ www.hoWlandeompanles.com RETAINED TRACT 10 - - - - - - - = TICS 11-27-13 WARNING· BASIS OF BEAAING: G.P.S. T1t. Si\..j RANCH co.¥ SOUTH 1/2 LTD. No. 68 . VAOUILLAS LTD. No. 22 SURVEY 1666 (BHL) RANCH CO. LTD. No. 68 N.B. GOSSETT (SHL) ABSTRACT 2253 --- --- --- --- --~===---==:::~~~.----~i-.. ...., SOUTH ,.. &>.64' WEST ,... 4,066.67 s 89"32'20• w 249.85' SURVEY 1678 C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 2495 -------- GRAPHIC SCALE 1000 2000 ~~~I (~FEET) 1 one~~ IOOOF\. U:GEMD Ruisi on Dot• HOWLAND ENGINEERING AND SURVEYING CO. TBP£ firm f!ookn!tln No.""4Wl' TBl'L!I ~ 118'1*"°"' ..... 1(l(ll64-00 _ 0 -¢- _.._ _ " __ , _ = FE!tCt "' HORIZONTAL WELL . ""' SIJ!IFAC[ LOCATION UNIT UHt UNt 2 05-17-13 060613 08-14-13 76\SH.- ...VOBJO ~.TJC.lflCM• P.lloSll.722.4411 - - - - - - - ,. TJES 10--18 13 www.howlandcomp&oles.com - • • - •SURVE'l'UN£ 11-27-13 ~ a.\SIS OF BE.ARING: G.P.S. Tx. South Zono, N.A.D.-27. FIELD DATE ,. PAGE a "'' lHS Pl.AT MAY tlOT SHOii' >LL CRQ$$lllG$ Of' Pl>£IJl6 OR C>.l!U3. HCMV.H0 ~ DRAWN BY: U..F./S.1.1.4. NID Sl..1IM:Tlle CO.. M:. ASSUt45 NO l!£SPCltS ~ ~ .,-g ~ .,. -¢- YAQUI LL.AS RANCH CO. VAQUILLAS ',, L LTD. No. 51 ....... ................ 1 RANCH CO LTD. No. 32_ I : SURVEY 468 RANCH CO.y LTD. No. 2 -¢- RANCH CO. N.B. GOSSETT ~:Ii LTD. No. 18 VAOUILLAS I !!~ RANCH CO. i!; '',,, : ABSTRACT 2255 EAST ... 2,74J.83' LTD. No. 65 2 '-.. N ',!.S·~· • - - - · · --··--·~--· · - - · • - - · · - - •• I "' {SHL) ~ -,_;.,. "· '" • I ~I I VAQUILlAS -¢- . 0 l ................... .s VAOUILLAS "!.: NORTH 1/2 SURVEY 1666 1 RANCH CO. 65 ~ .... - .... -- "" -- .... - . .::~~ ? A-~~~~ ~: 1 LTD. No. 8 68 A.C. GOETH, ABSTRACT 3142 ----,:-- ---- -:---- - -- ,..,v;a-u1;:;::;s • --- -- --- - -- -- -- - - --- - '' yRAN~ a1 8 ~ (BHL) VAQUILLAS RANCH CO. LTD. No. sa.n.,,__ ~ ........ iI A-2 No. 4 SOUTH 1/2 SURVEY 1666 l (8HL) "'l"\J VAQUILLAS z 4,948' ................... 1 VAOUJLLAS CONOCOPH1U1PS COMPANY N.B. GOSSETT ~ • RANCH CO. --------------------------------------------------V;A- 2RANCH VAQUJLLAS RANCH LEASE 199129-001 ABSTRACT 2253 • LTO. No. ea r· __. No. 38 26,622.79 ACRES (CALLED) WEBB COUNTY, TEXAS {SHL) RETNNED 640.00 ACRE UNT ! I ......·20· w - to...,.... ! 'I.-.-·- 1 SURVEY 1678 SURVEY 1667 I C.C.S.D. & R.G.N.G. R.R. CO. GRAPHIC SCALE C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 1125 SURVEY 1677 C.C.S.D. & R.G.N.G. R.R. CO. I ABSTRACT 2495 ~ o L:.U 1j J.·.·---- { IH tUT} 2000 I ' ABSTRACT 1130 ' ' I 1 noh - nx19n I LEGEND R1vl1lon Dalo EXHIBIT "A-12" HOWLAND ENGINEERING ANO SUR\ISYINQ CO. CONOCOPHILLIPS COMPANY 0 -¢- • HORIZOHTAL 'flEl.L SURrACE LOCATION • WELl • UNIT UNE ' ' 04-11-\J 05-17-13 oe-oe-u •' Tll!'fRTTl~l!o.F-4081 TBPLS Rom~ No.100464-00 76151<1..e...:IMIA- Llt.:lo. lX.18041 P.9:i&.m..u11 VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 12 - - >- - • rEHCE UHE 10-18-13 www.hOINlandeompanlM.com - - - - - - - • 11£S (VAQUIUAS RANCH A-2 WEI.LS No. 4, No. JB, No. 68 & - • • - ,. SUll\ICY UHE 11-27-13 WARNING: BASIS Of B&.RINC: C.P.S. T1. South Zone, N.A.0.-27. nn PLAT MAY r«IT SHC# Ju. Cf!OSS.fjll! or c.oau::s. f«IW'lNCI OCH~ Plf'EL.IHl:5 Oft VAQUIUAS RANCH CO. LlD. No. 2, No. 32) FIELD DATE I BOOK I PACE(t) II DRAWN BY; ' L.A.r./S.l.M. HID SURY£'11t1G CO~ lllC. AS'SIJll£S HO RtSPONSIMITT TO LOCATt PIPWNE Oft CAEl.E CllOSSNGS.. 640.00 ACRES N/A I N/A I N/A II CHECKED SY: J.S. ~nt:HO~~Ml."J'TJ.r~WPS~ IU OWICJtSHI' OR WEBB COUNTY. TEXAS I I 11 JOB No. 22131-:13-13 COl'TIUGNT HOWl»IO OIDIN1'.JJUN(I ANO Sl/INt'l'NJ CO., H:, 2013C I SHEET: 2 OF 2 H.\llOWWI~ OCP~U\221JUJ..ll\Ul.ll..1J..ll.<1vo9. IJIJl0)1~ U.~20IN.l.-POF EXHIBIT "A-13" FIELD NOTES FOR CONOCOPRUJJPS COMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 13 (VAQUILLAS RANCH A-1 WELLS No. 3, No. 7, No. 33, No. 144, No. 156, No. 163, No. 214) 636.53 ACRES A TRACT OF LAND CONTAINING 636.53 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1696, P.B. Reynolds, Abstract 2418; and Survey 1695, G.C. & S.F. R.R. CO., Abstract 1268, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 53°13'51" W, a distance of 1,137.24 feet, from the Vaquillas Ranch A- 1 No. 3 Well; THENCE, N 89°19'22" E, a distance of 6,735.31 FEET, to a point for the Northeast comer hereof; THENCE, S 00°58'29" E, a distance of 4,150.50 FEET, to a point for the Southeast corner hereof; THENCE, S 89°19'59" W, a distance ofll.75 FEET, to a point for a deflection right; THENCE, N 89°52'06" W, a distance of 4,950.94 FEET, to a point for a deflection left; THENCE, WEST, a distance of 1,816.67 FEET, to a point for the Southwest comer hereof; THENCE, N 00°22'59" W, a distance ofl,911.15 FEET, to a point for a deflection right; THENCE, N 00°21'20" W, a distance of2,147.98 FEET, to the POINT OF BEGINNING and containing 636.53 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYING DE>ARTMEN1\JobsU013U2131.14-13U2131.14-13.doc www.howlandcompanies.com 7615 N. SU ~ Of PPEl.JNES QI. coaIS. ltC7lilHIO ~ NID SIJl!YE'VIHC co_ INC. ~ lfO RESPaU'Nrr. JOB No. 221ll.14-1J c:a>l'RIGHT llOWlNlO ~ >16) SU1MW1G CO., INC. 2013C SHEET: 2 DF 2 HOW~~~[lW ENGINEERING AND SURVEYING CO. EXHIBIT "A-14" FIELD NOTES FOR CONOCOPHILLlPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 14 (VAQUILLAS RANCH A-1 WELLS No. 18, No. 35, No. 85, No. 155, No. 185, & No. 240) 640.00 ACRES A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1695, G.B. & C.N.G. R.R. CO., Abstract 1268, Webb County, Texas, and being more particularly described as follows: BEGINNING at a found 2" pipe which bears N 41°50'50" W, a distance of 1,969.80 feet, from the Vaquillas Ranch A-I No. 35 Well; THENCE, N 89°21 '27" E, a distance of 6,725.49 FEET, to a point for the Northeast comer hereof; THENCE, S 00°48'50" E, a distance ofl,999.05 FEET, to a point for a deflection right; THENCE, S 00°39'16" E, a distance of2,150.00 FEET, to a point for the Southeast corner hereof; THENCE, S 89°20'44" W, a distance of 6,707.86 FEET, to a point for the Southwest comer hereof; THENCE, N 00°58'29" W, a distance of 4,150.50 FEET, to the POINT OF BEGINNING and containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYrNG DEr ARTMEN1'Jobs\2013\22131.15-13\22131.15-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue . P.O. Box451128 (78045) , Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 , TBPLS Firm Registration Na. 100464-00 EXHIBIT "A-14" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 - RETAINED TRACT 14 (VAQUILLAS RANCH A-1 WELLS No. 1B, No. 35, No. 85, No. 155, No. 185, & No. 240) 640.00 ACRES WEBB COUNTY, TEXAS I I ' ' ' I' ' I' 1i ' 0 t.>" ·"' "''""0:" I SURVEY 1698 T.M. R.R. CO. I Ni:i::..-. >- . t; ABSTRACT 2592 ' ' f:!°"g o:"' ... N 89"21 'ZJ" E ,.. 8,725..49' "'"'"' "' t.>. ~ ej t ~ '' ' ~ ~: ~' '' ..' '' CONOCOPHILLIPS COMPANY I"' _- • '•\ : VAQUILLAS VAQUIU..AS RANCH LEASE 199129-001 ~ f.-----1~~'!.'..----~ RANCH 26,622.79 ACRES (CAUED) S A-1 No. 35 RET.NNED &40.00 N:SlE. l»llT :;; .... ~ ' VAOUILLAS -¢-A-1RANCH Iz YAQUlLLAS No. 185 SURVEY 1695 G.B. & C.N.G. R.R. CO. ABSTRACT 1286 -¢- A-1RANCH No. 18 WEBB COUNTY, TEXAS VAQUILLAS VAOU!LlAS -¢-A-1RANCH -¢- A-1RANCH No. 85 No. 155 VAQUILLAS s sg-20·44• w I"' e,101.as• RANCH VAQUJLLAS VAQUILLAS ,..l.,: A-1 No. 215 ~-o RANCH 'I VAOUIUAS RANCH V (BHL) ¥ A-1 No. 215 (>- A-1 No. 191 (SHL) r RANCH A-1 No. 193 VAQUILLAS VAQUILLAS RANCH -¢- RANCH A-1 No. 241A A-1 No. 11 (BHL) '"() VAQUILLAS a UA5 n. RANCH SURVEY 1692 VARA~CH V A-1 No. 241 P.B. REYNOLDS A-1 No. 184 (SHL) -¢- VAOUILLAS ~ ABSTRACT 2419 SURVEY 2112 VAQUILLAS I RANCH ¥ P.B. REYNOLDS RANCH 1 A-1 No. 73 ABSTRACT 2420 A-1 No. 1301 GRAPHIC SCALE VAOU!LLAS -¢- RANCH VAQUILLAS k--J-2L~ 'j VAOUILLAS -¢- A-1RANCH A-1 No. 186 A-1 RANCH No. 212 c .. fE£T) No. 15 1 """' • 1ooon. , (BHL) .( LEG£ HD R•vlsfon ""'' " HOWlANlW ENGINEERING ANO SURVEYING CO. 0 -¢- - HORIZOHTAL WEU. SURF...a: UICATIOH wru. UNIT UHL ,' 04-12 OS-17-13 06-13 "" •' rapfflnn~N<>.F-40!:f7 TDPl.!l"""~N<>.l~ ITHCE WIE 781~"L-A..,,,. Lan.'IX.~1 P.1155.nl.44\1 ' ------- www.howlandcompanlet>.com ---- ""' SURVEY WIE I 10-16-13 WARNING: BASIS OF OC>.RlNG: G.P.S. Tx. South Zone, N.A.O. 27. TlfS PlA1 lolNlr'. flElD DATE "" 900< "" ' "" . DRAWN SY: LAF./S.l.t.4. CHECKED BY: J.S. JOB No. 22131.\5 13 COP'r!ll(;llf llQWVJll DfCll£IRtfG NfO ~co.• U:. 2013C SHEET: 2 OF 2 . . •Q~1i_ Ho ,;®~ ~1~~.''' 'WWJf.\l!.,.,,;.~\%..&J~~ ENGINEERING AND SURVEYING CO. EXHIBIT "A-15" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 15 (VAQUILLAS RANCH A-1 WELLS No. 180 & No. 217) 541.82 ACRES A TRACT OF LAND CONTAlNlNG 541.82 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 279, G.C. & S.F. R.R. CO., Abstract 1353; and Survey 1004, P.B. Reynolds, Abstract 2421, Webb County, Texas, and being more particularly described as follows: BEGINNING ala point which bears S 54°13'31" E, a distance of2,749.54 feet, from the Vaquillas Ranch A-1 No. 180 Well; THENCE, S 89°24'49" W, a distance of 5,281.57 FEET, to a point for the Southwest corner hereof; THENC~ N 00°46'34" W, a distance of2,624.47 FEET, to a point for a deflection right; THENCE, N 00°30'06" W, a distance of3,119.05 FEET, to a point for the Northwest comer hereof; THENCE, N 89°45'42" E, a distance of2,654.31 FEET, to a point for an exterior corner hereof; THENCE, S 00°28'50" E, a distance of2,550.31 FEET, to a point for an interior comer hereof; THENCE, N 89°35'17" E, a distance of2,653.22 FEET, to a point for an exterior corner hereof; THENCE, S 00°16'38" E, a distance of3,169.04 FEET, to the POINT OF BEGINNING, containing 541.82 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYING DEPARTMENl\Jobs\20 ! 3U2131.16-13\22131.16-I 3.dce www.howlandcompanies.com 7615 N. Bartlett Avenue , P.O. Box451128 (78045) , Laredo, TX78041 P. 956.722.4411 F. 956.722.5414 TBPE Flrm Registration No. F-4097 : TBPLS Finn Registration No. 100464-00 EXHIBIT "A-15" CONOCOPHILLIPS COMPANY VAQUJLLAS RANCH LEASE 199129-001 RETAINED TRACT 15 (VAQUJLLAS RANCH A-1 WELLS No. 180 & No. 217) 541.82 ACRES WEBB COUNTY. TEXAS . ' SURVEY 41 -----\ SURVEY 280 J. LEONARD ABSTRACT 2634 C.C.S.D. & ~ R.G.N.G. R.R. CO. \ ABSTRACT 1039 SURVEY 1698 ~~a:c~· i~s21>----"-... ' I _.._·~-·-·_•_-_.."'".... _.3_,_.___,_ .... __________ -4 ~ SURVEY 279 G.C. & S.F. R.R. CO. ABSTRACT 1353 :i WEBB COUNTY, TEXAS ,.• JI lo p :;i !! z "' '--------- SURVEY 40 C.R. DAVIS ABSTRACT 2203 CONOCOPHILLlPS COMPANY VAOUILLAS RANCH LEASE 199129-001 26,622.79 ACRES (CALLED) RETAlhEJ 54 t .82 N.!ff£. Ltm' VAQUILLAS RANCH A-1 No. 180*::--------!~~:_ _________ ! ~ ,. VAOUIUAS RANCHO I 1 r ', ',, ',~ t! .- ,.S.,. ~ •~ A-I No. 217 I -¢- (SHL) • I i'!)'4J• ! ~J "~1i~e "' VAQUILLAS RANCH A-1 No. 104 0 z -- --- ---- .... ---- .. :.:---- ' I VAOUILLAS RANCH ----~ ', .. -- ' . ., A-1 No. 217 -¢- jl '-.,~ (BHL) , VAOUILLAS RANCH/,...------:::::<.---.-.-~-.-.~... -.:'.~W::-_-,-... '-,-.S-7~'----------~'?-~, A-1 No. 240 ,1 "i ' VAOU!LLAS RANCH "'·OA-1 No. 242 ' ~) """ ( POINT DP l 1 VAOUILLAS RANCH¥ (SHL) ' I A-1 No. 242 {BHL) I' VAQUIU.AS RANCH_A SURVEY 1004 A-1 No. 157 Y P.B. REYNOLDS ' ABSTRACT 2421 I' bo·---- ' GRAPHIC SCALE I' VAQUlllAS RANCH !iOJ 0 ~ !iOJ If' A-1 No. 218 -Q- (BHL) VAOUJLLAS RANCH VAQUIUAS RANCH 0 VAOUIUAS RANCH A-1 No. 216....._ A-1 No. 216 A-1 No. 218 (SHU (BHL1 V (SHL) LEGEND RHlslcn Oo!• HOWLAND ENGINEERING ANO SURVEYING CO. TBPl'flnn~tlo.14Wl' TBl'l..SAml~/ob,!t!Cl01.(l(J -¢- 0 -~,-- ·~ ~EU~E : HORIZOKTAI.. WELL SuRr...a: LOCl.TIOH =Will , 2 0+-12 13 07-02-IJ 7a1SH.-A....,. ~lX.711(111 P.1156.TZZMll WWW .howlandcompanies.corn - - - - - - - =TIES - .. '" - '" SURvtY UH£ WARNING: BASIS OF BEARING: G.P.S. Tx. South Zone, NAO. 27. ntS PIM 1111'1' HOT $HOW M.l. ~ OF PP£IJKS OR t>8..ES. llOll'l.NIO DfCL'UJll'IC NII SIJll'>Q1Hll CO. 1HC. ~HD~ ro ux:AJE PAl.1£ Ofl c.oBL.£ ~ FIELD DATE: ""°K PAGE s DAAWH BY: A.LC./LA.F. ~11~=oo~~~~ra:010ND1S>POR '" '" '" CHECKED EJY: JOB No. J.S. 221J1.15-1J SHEET: 2 OF 2 ENGINEERING AND SURVEYING CO. EXHIBIT "A-16" FIELD NOTES FOR CONOCOPHILLIPS COMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 16 (VAQUILLAS RANCH A-1 WELLS No. 29, No. 44, No. 157, No. 212, No. 216, No. 218, & No. 242) 558.74 ACRES A TRACT OF LAND CONTAlNING 558.74 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1004, P.B. Reynolds, Abstract 2421, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 74°36'06" E, a distance of2,077.33 feet, from the Vaquillas Ranch A-1 No. 242 Well; THENCE, S 00°31 '16" E, a distance of 4,612.08 FEET, to a point for the Southeast comer hereof; THENCE, S 89°23'44" W, a distance of 5,270.83 FEET, to a point for the Southwest corner hereof; THENCE, N 00°39'16" W, a distance of 4,613.75 FEET, to a point for the Northwest comer hereof; THENCE, N 89°24'49" E, a distance of 5,281.57 FEET, to the POINT OF BEGINNING, containing 558.74 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 ,,j ,. SHEET! OF2 H:\HOWLAND\SURVEYING DEPARTMENl\lohs\2013U2131.17-13U2131. I7-13.doc /~~-~¥..·~~ ...' www.howlandcompanies.com 7615 N. Bartlett Avenue : P.0. Box 451128 {78045) , Laredo, TX 78041 P. 955.722.4411 TBPE Firm Registration No, F-4097 ' TBPL5 Firm Registration No. 100464-00 F. 956.722.5414 lt;r EXHIBIT "A-16" CONOCO PHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 N RErAINED TRACT 16 (VAQUIUAS RANCH A-1 WELLS No. 29, No. 44, No. 157, No. 212, No. 216, No. 218, & No. 242) 558.74 ACRES WEBB COUNTY, TEXAS II A VAQUIUAS RANCH I1 I 1 SURVEY 279 G.C. & S.F. R.R. ABSTRACT 1353 co. 0 VAQUILtAS RANCH VA-1 No. 180 I 1 VAQUILlAS A-1 No. 217 1 _Yx_ RANCH . {SHl) 1 VA-1 No. 104 _J L----~AOu~~~c;---------------- I I A-t No. 217 : (BHL) -¢- N 89"24'1 -49• E ,.. 5,281.5.,. : I ;...1 i;'!J6'9rt..-'<--- ----- VAQUIUAS< VAQUILLAS :21_l:!.J.{011·~ RANCH RANCH AQ~~:.: ___ ~----------- A-1 No. 240 A-1 No. 242 V VAQUIUAS 2.008' (BHL) RANCH A-1 No. 242 _n_ VAQUILlAS (SHL) SURVEY 40 5 V RANCH C.R. DAVIS . ____ __,.. A-1 No. 157 ABSTRACT 2203 CONOCOPHILLIPS COMPANY VAQUlllAS RANCH LEASE 199129-001 ~ VAOUILLAS A RANCH -y- ~ G .,; VAQUILL.AS RANCH .Q- 26,622.79 ACRES (CALLED) RETAl\IED &!58..74 ~ UNIT VA~~'H"'5 ,_ ~ ______ _ ...• A-1 No. 191 A-1 No. 218('.) VAQUIUAS A-1 No. 216d'"'t.. SURVEY 2112 l (BHL) RANCH (BHL) ¥ P .B. REYNOLDS 3t A-1 No. 218 VAQUJLLAS ':.:, ABSTRACT 2420 • (SHL) RANCH DVAOUILLAS ~ SURVEY 1004 P.B. REYNOLDS A-1 No. 216 - (SHL) ~ RANCH "> A-1 No. 241 ~ ABSTRACT 2421 (SHL) -¢-z VAOUlLLAS WEBB COUNTY, TEXAS VAOUlllAS -¢- RANCH A-1 No. 29 RANCH A-1 No. 1.30 VAOUJUAS RANCH VAOUILLAS A-1 No. 212 } RANCH A-1 No. 186 Q (SHL) VAQUlllAS-¢- _y'-( VAQUILLAS RANCH ¥ RANCH A-1 No. 44 A-1 No. 212 (BHL} s 89"23'-M. w ... a,210.aJ' VAQUILLAS VAOU!LLAS RANCH ~ RANCH A-l No. 239 A-t No. 187 (SHL) (), VAQUJUAS I V RANCH A-1 No. 2.39 csH'I SURVEY 1003 J. POITEVENT ABSTRACT 1655 i-.-.--- !oC(I 0 GRAPHIC SCALE VO ~ llljlO c: ( IN f'E£l) 1 Ire), • lOIXH\. T r------- •. I UGENO Revl•lon Date .. H i ~ .""' lil kiti'i' HO ,.~~~~ft§ji ENGINEERING AND SURVEYING CO. EXHIBIT "A-17" FIELD NOTES FOR CONOCOPRIIJJPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 17 (VAQUILLAS RANCH A-1 WELLS No. 15, No. 71, No. 130, h~~~~~~m~mh~k~k~ No. 239, No. 241, & VAQUILLAS RANCH A No. 89) 635.73 ACRES A TRACT OF LAND CONTAlNING 635.73 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 2112, P.B. Reynolds, Abstract 2420, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 41°40'24" W, a distance of 1,866.60 feet, from the Vaquillas Ranch A-I No. 184 Well; THENCE, N 89"20'44" E, a distance of 3,399.18 FEET, to a point for the Northeast comer hereof; THENCE, S 00°39'16" E, a distance of3,089.17 FEET, to a point for a deflection right; THENCE, S 00°12'57" E, along an existing fence line, a distance of3,414.86 FEET, to a point for the Southeast comer hereof; • THENCE, S 89°22'44" W, a distance ofS,109.93 FEET, to a point for the Southwest comer hereof; THENCE, N 00°20'48" E, a distance of3,275.75 FEET, to a point for an exterior corner hereof; THENCE, N 89°26'27" E, a distance of 1,655.49 FEET, to a point for an interior comer hereof; THENCE, N 00°13'32" W, a distance of3,228.56 FEET, to lhe POINT OF BEGINNING, containing 635.73 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYlliG DEPARTMEl\i\Jobs\2013\22131.18-13122131.18-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451U8 {78045) Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 1 TBPLS Flrm Registration No. 100464-00 EXHIBIT "A-17" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 17 (VAQUIUAS RANCH A-1 WEUS No. 15, No. 71, No. 130, No. 145, No. 184, No. 186, No. 187, No. 191, No. 192, No. 193, No. 194, No. 239, No. 241, & VAQUIUAS RANCH A No. 89) 635.73 ACRES WEBB COUNTY, TEXAS VAOUJLlAS -¢1 VAOU!UAS RANCH I -¢- A-1 No. 240 • .~ RANCH VAOUJUAS SURVEY 1695 A-1 No. 18 RANCH A-1 No. 155 -¢- riiif]P-, -¢- VAOUJUAS I• J RANCH G.B. & C.N.G. R.R. CO. ABSTRACT 1268 """"""""' A-1 No. 85 • .._ _____ ---- --- ...... - -- ' ,,.,, N 89"20' +4-• E ... 3,399.18' I I VAOUILLAS -¢- '~~- I VAOUILLAS -¢-0. A-1RANCH I VAQUILLAS No. 215 (SHL) VAOUJUAS RANCH 'j. , 't"• .. 1~ VAQUJLLAS RANCH A-1 No. 191 ~Cllc;j l " A-1 No. 19J RANCH VAOUIUAS ',, .~ RANCH !:: o~.., OoN A-1 No. 215 A-1 No. 241 ~ (BHL) -¢- RANCH '°~ '\.~cv.1 II (BHL) -!() ~z,... A-1 No. 11 . VAQUILLAS ~~'-' "' "'Qi I') '.,_ l SURVEY 1692 t L-----1235.----~ RANCH A-1 No. 241 l w ..... ¢- VAOUILLAS P.B. REYNOLDS AB,STRACT 2419 ~ \., ' VAOU!LLAS RANCH {SHL) -¢- :. ""'"' "'.,;~ i A-1 No. 184 VAQUJLLAS RANCH 11-1 No. 7J VAOUILLAS h RANCH A-1 No. 130 VAOtJILLAS RANCH § RANCH A-1 No. 237 z -¢-VAOUILLAS "' A-1 No. 212 (SHL) VAQUILLAS {BHL) VAOUIUAS RANCH VAOUILLAS RANCH A-1 No. 2.37 ail- -¢- RANCH A-1 No. 15 A-1 No. 186 0 RANCH (SHL) -¢- A-I No. 198 VAOUJLLAS 0 (SHL) N 89"2&'2r E 1.~.49' RANCH ;-.-· VAOUILLAS RANCH A-1 No. 187 A-1 No. 212 •"'?"')( x~~· VAQUILLAS RANCH -¢- (BHL) -¢- VAQU!LI.AS RANCH A-1 No. 91 A-1 No. 239 (SHL) % ,. -¢- VAQU!LLAS CONOCOPHILLIPS COMPANY VAOUILlAS RANCH LEASE 199129-001 26,622.79 ACRES (CALLED) • VA~~~'H"5 ,. VAOUILLAS RANCH :; RANCH A-1 No. 192 RETAINED 63S.73 ACRE UNJ" A-1 No. 239 ...m A-1 No. 195 ~ (8HL) ~ b (SHL) l -¢- VAQUILLAS RANCH w l w A No. 89 SURVEY 2112 ~ "' ~!l SURVEY 1693 VAQUJLLAS P.B. REYNOLDS g~~ -¢-A-IRANCH ~~- G.B. & C.N.G. R.R. co. No. 194 ABSTRACT 2420 WEBB COUNTY, TEXAS § ><"' ... ABSTRACT 1269 :z "' [;'~~ "'P. .. ~...;~ VAOUILLAS VAOUILLAS -¢- RANCH RANCH A-1 No. 71 A-1 No. 90 VAQUILLAS -¢- -¢- RANCH A-1 No. 145 :'J. s 89"22'44. w .... 5,109.93' ·~~·~ ~ VAQUILLAS RANCH A-1 No. 208 •• F.R. FE!LLE AB~:T-~---·· GRAPHIC SCALE I- ' • 'll -· "'1 I w~-·~->~-> SURVEY 278 T-.....AJ--!r(J ·=. = I FRED SPEED ABSTRACT 2462 (ll. 1004.54-00 • WW. Ul'!IT Ull[ f'DICE UHE ' 11115N.BM!oll.A......,. 1..8Mo.lX.1ll(l41 P.lil::IG-722.Mll ------- WARNING: BASIS Of' BEARING: G.P.S. www.howlandcompenles.com T~. South Centrcl Zone. NAD.-27. -··- "' SURVE"f UNE THS PLAT l.IAY MlT SHOW Ml. Cll!lSSl'ICS IY l'Mllt£S OR CA!l..£S. HOM.AllD ElfClt£E!INO FIELD DATE BOOK PN:."'a\ DRAWN BY: LAF. NG SlMIYEY»IG 00.. Ille. .tSSUMES HO AESPOl!SlllUlY "lU l.OCO.TE PIPEl..N'. Of!; CA8l( a!OSSIHCS.. ~~':HG~~NEL~~=:::J:"::-oon:""IJ'~ ~ COPl'RICHT HCN\H(I) DlCff:ERllC ~ SU!MYN: CO., .fie. 201JC 0 "'' "'' "'' CHECKED BY: J.S. JDS No. 22131.18 " SHEET: 2 Of ' Ho. •'1.\\'1 1 ·_:!JJ~~h\ lf1\~rr.··I~· 'WWA[~..,.f~.f'<1lJfili.v ENGINEERING AND SURVEYING CO. EXHIBIT "A-18" F1ELDNOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETA1NED TRACT 18 (VAQUILLAS RANCH A-1 WELLS No. 11, No. 24, No. 72, No. 73, No. 106, No. 198, No. 215, & No. 237) 615.92 ACRES A TRACT OF LAND CONTAINING 615.92 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1692, P.B. Reynolds, Abstract 2419, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 77°14'2T' E, a distance of2,088.50 feet, from the Vaquillas Ranch A-1No.215 Well; THENCE, S 00°13'32" E, a distance ofJ,228.56 FEET, to a point for the Southeast comer hereof; THENCE, S 89°26'27" W, a distance of7,026.24 FEET, to a found fence comer post for a deflection right; THENCE, S 89°56'25" W, a distance of 1,257.95 FEET, to a point for the Southwest comer hereof; THENCE, NORTH, a distance ofJ,271.85 FEET, to a point for the Northwest comer hereof; THENCE, S 89°52'06" E, a distance of 4,950.94 FEET, to a point for a deflection left; THENCE, N 89°20'44" E, a distance of3,320.43 FEET, to the POINT OF BEGINNING, containing 615.92 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYlNG DEPARTMENT\Jobs\2013\22131.19-13\22131.19-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box451128 {78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414 TBPE Finn Registration No. F-4097 : TBPLS Firm Registration No. 100464-00 .I -.,,,--- • _n_ VAOUILLAS ' VAQUJLLAS V RANCH VAOUlLLAS 1· I• ' ii RANCH RANCH .I A-1 No. 18 ~ I''L_ _____ A-1 No. 85 SURVEY 1696 A-1 No. 156 SURVEY 1695 VAOUILLAS (SHL) -¢- RANCH -¢- G.B. & C.N.G. R.R. CO. 155 (ii,,~ P .B. REYNOLDS A-1 No. x ABSTRACT 2418 ' ABSTRACT 1268 N 7714'27" E - --- - .. I 2,088.SO' ~) I l s 89'52'0S-' -c. ... 't,VOU.V't N 89'20'44-. E ... 3,320.43' VAQUILLAS RANCH -.., !;;II --- _ ...... -------- .. - ·~ SURVEY 1691 "I "1 "1 >< A-1 (~~L} 215!-J?:s-=-=-------2.ros·-------~- VA~~~'H"s RANCH A-1 No. 215 VAQUILLAS YA-1 No. 193 i G.C. & S.F. R.R. CO. CONOCOPHILLIPS COMPANY SHL RANCH VAQUILL-6.S RANCH CO. ABSTRACT 1267 tel,. VAQUILLAS RANCH LEASE 199129-001 ( ) -¢-. A-1 No. 11 Q LTO. No. 65 :i ~-I ~ I 26,622.79 ACRES (CAllED) RET~ED 81S.92 ~ UrtT SURVEY 1692 VAQUILLAS _r,_ ~ (SHL) i ' RANCH V P.B. REYNOLDS ~- VAQUILLAS A-1 No. 184 i)- RANCH CO. ABSTRACT 2419 "' ~1- VAQUILLAS .r'-f VAQUJLLAS LTD. No. 35 ' RANCH V WEBB COUNTY, TEXAS ~ RANCH CO. LTD. No. 68 §z VAQUILLAS RANCH A-1 No. 73 VAQUILLAS RANCH § (BHL) VAQUILLAS A ><,.1 A-l No. 106 A-1 No. 237 RANCH co.V (BHL) VAQUILLAS (BHL) "' -¢()VAQUILLAS RANCH CO. LTD. No. 22 VAOUIUAS RANCH 11 ><,. -¢- VAQUILLAS RANCH A -y- VAQUILLAS VAQUJLLAS RANCH RANCH A-1 No. 237 air -¢- VAQUILLAS RANCH A-1 No. 15 LTD. No. 68 A-1 No. 72 A- l No 24 Q RANCH A- 1 No. 198 VAQUILLAS (SHL) (SHL) -¢- 11 FatJr.d Fenee A-L No. 106 (BHL) RANCH I >< >< C"..imar P03t (SHL) Q A-1 (:~l.) 198 -¢" ! 1=1 ' I ,_ ' s 89'66'25. 1.257.~' w tIff>< ' s ' ' ' 89"28'27" w ... 7 ,026.24' ' -¢-' ' VAQUILLAS • I SURVEY 1676 RANCH I 911 VAQUILLAS ll .' -¢- A-1 No ABSTRACT 2495 >< RANCH A-1 No. 192 I VAOU!LLAS VAQUJLL.AS I SURVEY 2112 ·~ur GRAPHIC SCALE 'i ,. RANCH A-1 No. 92 RANCH A-1 No. 195 _ -Q-Q VAQUILLAS RANCH I P .B. REYNOLDS ABSTRACT 2420 VAOU!LLAS ..:-.- ........ (Nrm) , 1,..h .. 1ooon. =I tI ¥I >< -¢- (BHL) A-1 No. 195 (SHL) 1 1 I -¢- RANCH A No. 89 LEGEND Rwlslon Doi• HOWl"AN~ EXHIBIT "A-18" : HORIZONTAL WEil. 0 SUllF"AC[ LOc.t.TlON 04-11-13 11-27-13 ENGINEERING AND SURVEYING CO. CONOCOPHJLLIPS COMPANY -¢- •WW. .. ' :,'.';" "'" UNIT UN[ 12-0~13 l9PfAon~No.F-f097 T8Pl.8Rnl~No.1-..00 7..$N.B.uoa.1.- Utwdo,TX,710t1 P.~722.U11 www.howlandcompanlos.com VAQUIUAS RANCH L£ASE 199129-001 ~ RETAINED TRACT 18 =~=: (VAQUIUAS RANCH A-1 WEUS No. 11, No. 24, No. 72, No. 73, - · · - • "'""" "" "' " WARNING: BAS!S OF BEARING: G.P.S. T•. South Zono. NAD.-27. TIU l'L'T MOT SHOW AU. CROSSINCOS or l'll'tUtUHt OR eo.el..E CftOSSINGS. 615.92 ACRES N/A I H/A N/A II CHECKED BY: J.S. ~TH\:NO~~cr~~~F"tt~OR WEBB COUN1Y, TEXAS 1 11 JOB No. 22131.19-13 COPYRIGHT llClWWIO DOh'WtlNC AA'll SUlMYINO co.. INC. 20130 SHEET: 2 OF 2 1-1.\ll~ OfPAA1'MtNf\JObl\l'DUUJ.1Jll21JU!-~ l/!m1'1 WUI PU. Adobl PDF HOWLAND ENGINEERING AND SURVEYING CD. EXHIBIT"A-19" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 19 (VAQUILLAS RANCH A-1 WELLS No. 25, No. 90, No. 91, No. 92, No. 132, No.143, No. 195 No. 208, & No. 238) 640.00 ACRES A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1693, G.B. & C.N.G. R.R. CO., Abstract 1269, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 24°31 '42" W, a distance of 1,631.39 feet, from the Vaquillas Ranch A-I No. 92 Well; THENCE, N 89026'27" E, a distance ofS,370.75 FEET, to a point for the Northeast comer hereof; THENCE, S 00°20'48" W, a distance of3,275.75 FEET, to a point for a deflection right; THENCE, S 00°41'52" W, a distance of862.52 FEET, to a point for a deflection· left; THENCE, S 00°21'12" E, a distance of 1,087.58 FEET, to a point for the Southeast corner hereof; THENCE, S 89°28'19" W, a distance of 5,311.17 FEET, to a point for the Southwest comer hereof; THENCE, N 00"23'39" W, a distance ofS,222.38 FEET, to the POINT OF BEGINNING and containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SUR VI:.i'ING DEPARTMEN'NobsUOJJ\22131.21-13\22131.21-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box451128 (78045) i Laredo, TIC78041P.956.722.4411 F. 956.722.5414 TBPE Rrm Registration No. F-4097 TBPLS Arm Registration No. 100464-00 EXHIBIT "A-19" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 19 (VAQUILLAS RANCH A-1 WELLS No. 25, No. 90, No. 91, No. 92, No. 132, No. 143, No. 195 No. 208, & No. 238) 640.00 ACRES WEBB COUNTY, TEXAS ·1I. _r.,_ VAQUIUAS V RANCH A-1 No. 11 ·1I. ·1 J • ¥-< ~ VA.?_~!CLlASH II >< I "1 >< H--;) >< >< I p~~:~Nl~~S ABSTRACT 2419 VA~6'if5 -Q-A-1 No 24 - VAQUILLAS A-L No. 106 (BHL) -¢- VA~~6~ 0 A-L VAQUILL.AS RANCH A-1 No. 198 VA~~6'H"'5 -¢-A:~~~:3 - VAQUILLAS A-I No. 237 @ (BHL) VAOUILL.AS .'. . V """ ,........,... .,. No. 106 (BHL) A-1 No. 198 RANCH A-1 No. 72 >< >< llBGIKNING (SHL) -¢- Q (SHL) A- l No. 237 N 89"26'27" E ,.. 6.J]0.75' (SHL) h.-------~-- ,=-r-- --....:..;::..:.:;,.;;...:..;....;;:;;,;=.,..._,.--===~= --- --- ~ -¢- VAQUILL.AS l\~ '{J • 1 RANCH A-1 No. 91 -¢- I.~~- ~: I >< ':"~-:, ~I VAQUILL.AS ~-\ ~ I VAOUILL.AS RANCH I l >< '~ I \ \ I VAOU!LL.AS RANCH YAQUI LL.AS RANCH A-1 No. 195 _,.i.,_ ¥0 RANCH A-1 No. 195 (SHL) A-1 No. 192 t-6Jft_4A-1 No. 92 (BHL) ...., .I VAOU!LLAS J?c... VAQUILLAS RANCH ' U RANCH VAQUIUAS -¢- VAQUILLAS RANCH A-1 No. 194 ~I A-1 No. 238 A-1 No. 238 0: (BHL) (SHL) -¢- RANCH ~ ., x A-1 No. 25 SURVEY 2112 "'~'""' r- " ~f..?N.,,,_. ..' l CONOCOPHILLIPS COMPANY VAQU!LLAS RANCH LEASE 199129-001 VAQUILLAS RANCH P.B. REYNOLDS ABSTRACT 2420 i 1~I 26,622.79 ACRES (CALLEO) A-1 No. 90 ~~~ RETAINED &40.00 ACRE UNIT -¢- -¢- ~B~ x -¢- ~ - --- -. - ...; "'~~ z VAOUILLAS ~~ ,." I~ RANCH A-1 No. 208 ~~ SURVEY 2367 F.R. FEILLE !l"' ABSTRACT 3333 Ii. SURVEY 1693 G.B. & C.N.G. R.R. CO . ABSTRACT 1269 I WEBB COUNTY, TEXAS I ..-'-<: VAQUILLAS ¥ RANCH A-1 No. 1.32 I "' SURVEY 276 s 89"28'19• w .... 5,311.17' FRED SPEED 1 ABSTRACT 2462 SURVEY 1694 FRED SPEED ABSTRACT 2461 GRAPHIC SCALE ~93~00 ,i '"""--~ (IN FIIl") I ' I-..---·- LEGEND Ravlslon Drita HOWLAND ENGINEERING AND SURVEYING CO. lBPEFltmlteglob!lonNo..F-!097 Ttlf'l.8Rm~lt:>.10G4M-03 --"-- 0 = ;; -¢- ,. =ACE LOCAnOH UKlf LINE HOllJZOKTAL WELL 1 2 J 04-12-13 05-17 13 10-18-IJ 76\~H.-A......., l.a'..m.TX.7ZIOJlt.E!I. H:lWVl!tl tNGIHt[lb!IG " " stJRV£YING CO., .ic. JSS\JllE:S NO R£SPOHSetm' ltl l.CIC\Tt ~C Ofl C0&£ CllO$SN;l5.. 502.31 ACRES FlELD DATE NIA BOOK ,,, PACE(•) ORi\WN BY: L.A.F. CHECKED BY: J.S. ~~~~~~%i.~co~~!Jlr~CRN. ft[ OWllDISlllP Ofl WEBB COUNTY, TEXAS "'' JOB No. 22\Jl.22-ll COP"rlllllttT HOl'!lM'O DIQNwtlNO NIO SllfM'l'JIQ CO. INC. 20\3C SHEET: 2 OF 2 ll:'IHCIYMN~UPMYING DaMfl,OlHT\Jcbo~U\UllUl·U\nUJ.U-~.~ J.U:U7PM.AdoboPDf How· ENGINEERING AND SURVEYING CO. EXHIBIT "A-21" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUJLLAS RANCH LEASE 199129-001 RETAINED TRACT 21 (VAQUILLAS RANCH A-7 WELL No. 249) 608.05 ACRES A TRACT OF LAND CONTAlNlNG 648.05 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 259, C.C.S.D. & R.GN.G. & R.R. CO., Abstract 1137, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 39°24'54" W, a distance of 1,866.66 feet, from the Vaquil!as Ranch A-7 No. 249 Well; THENCE, N 88°53'51" E, a distance of5,385.00 FEET, to a point for the Northeast comer herof; THENCE, S 00°35'40" E, a distance of 5,280.00 FEET, to a point for the Southeast comer hereof; THENCE, S 89°32'20" W, a distance ofS,369.40 FEET, to a point for the Southwest comer hereof; THENCE, N 00°45'49" W, a distance of 5,219.79 FEET, to the POINT OF BEGINNING and containing 648.05 acres of land, more or less. LESS AND EXCEPT 40.00 ACRES, described as follows: BEGINNING at a point which bears S 52°35'23" E, a distance of 1,871.58 feet, from the Vaquillas Ranch A-7 No. 249 Well; THENCE, N 89°32'20" E, a distance ofl,320.00 FEET, to a point for the Northeast corner hereof; THENCE, S 00°27'40" E, a distance of 1,320.00 FEET, to a point for the Southeast comer hereof; THENCE, S 89°32'20" W, a distance of 1,320.00 FEET, to a point for the Southwest corner hereof; THENCE, N 00°27'40" W, a distance of 1,320.00 FEET, to the POINT OF BEGINNING, containing 40.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET! OF2 H:\HOWLAND\SURVEYING DEPARTMENT\JobsU0\ 3\22131.2l- !3\22 \ 3 J.23-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue : P.O. Box 451128 {78045) ; Larr: do, lX 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Regl5tration No. F-4097 , T8PL5 Firm Registration No. 100464-00 EXHIBIT "A-21" CONOCOPHILLIPS COMPANY VAQUILlAS RANCH LEASE 199129-001 RETAINED TRACT 21 (VAQUILlAS RANCH A-7 WEll. No. 249) 608.05 ACRES WEBB COUNTY, TEXAS SURVEY 36 C.R. DAVIS I' J ~ ABSTRACT 2581 ' SURVEY 35 ' I' C.C.S.D. & R.G.N.G. R.R. co. ABSTRACT 1036 I• I' -· ' ' SURVEY 16 @~ I C.C.S.D. & R.G.N.G. R.R. CO. :~ ~ 1 ' ABSTRACT 2727 ----- N 88'53'51 • E ,,.. s.;585.00' ------ '' ' ' ',<- lI >''~ Ito -~~ ... ~~~ ,_.·~ I SURVEY 259 SURVEY 264 I C.C.S.D. & '~ I R.G.N.G. R.R. co. G.C. & '' I ABSTRACT 1137 S.F. R.R. co. I 1166' '-$ ' IVAQUILLAS RANCH A-7 No. 249 WEBB COUNTY, TEXAS ABSTRACT 3302 ---!.I.----- (SHL) VAOUIUAS RANCH ', A-7 No. 249 '.._ (BHL) ,, ·~).J~~~J ' " .,. -~ JlllGllOOllG 40.~ or ~ i" for m '3cP>-,e trocl ;;. ',,, N 89"32°20• E " ', 1 32000' I I ~ ~ "' "'~ ~ ~~ LESS " EXCEl'T ~8 ~ iii' 40.00 M:RES !:; ci I! ~~ I!~ I! ci .. u .. z z " " "'"" C') ~- 0 >- i::i i:i:: E-< s 89'J2·20- w ~0ci~ u. CONOCOPHILLIPS COMPANY VAQUJLLAS RANCH LEASE 199129-001 1,320.00' :>uzrn "' ci ':! 26,622.79 ACRES (CALLED) RETNNED 608.05 l-o A. et: E-< I' C.C.S.D. & R.G.N.G. R.R. co. ABSTRACT 2816 I' r:'~c;Ol ~I'.:! 'E-< :>uZi{/} u ' "' ""' ' I I "'"" ' . GRAPHIC SCALE ' ~ " = bes......- ·~ ~ = I I' {'" rro I I lr'Ch - 1DOCJf\. ' Rn1slon LEGEND "'" HOWliL~~fill 0 -¢- " HORIZONTAL Wl:Ll SUAf,lCC l.OC.l.TIOH wru ' 'J 04-12-lJ 05-17-IJ ENGINEERING ANO SURVEYlNG CO. _,_ 111PEFhn~W...f-4Clll' www.howlandcompenles.com TIIPl..Sfb>RogialldcnNo.IQ04&1.(1() l'll15N.-,l-... Undl>.TX.71IOIP OR l.fSSOlt. THIS DRAn1CO W« IXCWSNCLT' FM lllR.JHCTCl'I R£SCM!C£S O.kC CD. lP. '" CHEC!(E() BY: J.S. JOB No. 221J1.2J-1J COPmlCH1" HOWUoNO EHCl!€IRtlC ~ SUllVE'l\ltl;l CO~ ..-;:. lOllC SHEET: 2 ' OF HOWLAl~D ENGINEERING AND SURVEYING CO. EXHIBIT "A-22" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 22 (VAQUILLAS RANCH A WELLS No. 14, No. 19, No. 20, & VAQUILLAS RANCH B No.13) 612.33 ACRES A TRACT OF LAND CONTAINING 612.33 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 275, G.C. & S.F. R.R. CO., Abstract 1336, Webb County, Texas, and being more particularly described as follows: BEGINNING ata point which bears N 46°23'57" W, a distance of936.17 feet, from the Vaquillas Ranch A No. 14 Well; THENCE, N 89°49'01" E, a distance ofS,164.33 FEET, to a point for the Northeast comer hereof; THENCE, S 00°30'14" E, a distance of5,150.08 FEET, to a point for the Southeast comer hereof; THENCE, S 89°49'01" W, a distance ofS,194.07 FEET, to a point for the Southwest comer hereof; THENCE, N 00°10'23" W, a distance of 5,150.00 FEET, to the POINT OF BEGINNING, containing 612.33 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:U:l.OWLAND\SURVEYrnG DEPARTMEN"Nobs\2013\221J1.24-13\22131.24-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue ; P.O. Box 451128 (78045) i Laredo, l'X 78041 P. 956.722.4411 f_ 956. 722.5414 TBPE Firm Registration No. F-4097 1 TBPLS Firm Registration No. 100464-00 EXHIBIT "A--22" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 22 {VAQUIUAS RANCH A WEllS No. 14, No. 19, No. 20, & VAQUIUAS RANCH B No. 13) 61 2.33 ACRES WEBB COUN1Y. TEXAS I• ,....., VAOUJLLAS V RANCH I 1 ENo.70 • 1 I• SURVEY 277 I• I • I• G.C. & S.F. R.R. CO. ABSTRACT 1337 -¢- VAQUJUAS • I• J~ • POINT o!'l RANCH E No. 82 • lllGllOOllG - • • - ., • --,;..,---.------_;•;;..;... ;;.."0~1~·-=·-N_.;~~·~'84;.;.;.33';;;;._ _ _ _ _ _ _ _ _ _- ; ;;.... I• 't._....r. t .s>.J:'$:• I~ SURVEY 32 ~,*. t '~ VAQU!UAS C. R. DAVIS f---576'"--Y- RANCH ABSTRACT 2582 A No. 14 VAQUILLAS RANCH A No. 19 ~d CONOCOPHILLIPS COMPANY VAQUJUAS RANCH LEASE 199129-001 ~ - :i E-o - · · -- · · __...11-----------s-...--.-.'"·o-,::-.-w-N-.-.-,.-.-.o-r.,...----------9 " ... ~ei~ ""'' 0: •• "'"""' r:i<;l .; I• uu SURVEY 274 G.T. BLACK • ABSTRACT 2551 I• GRAPHIC SCALE • (IN m;r) 'j r I• 1 Inch~1DODFl. Revlslcm HOWlA~lQJ ENGINEERING AND SURVEYING CO. -¢- __ 0 • ~;~~~. ...._ ~ ~ 1.JHE 2 ' '°'" 04-09-13 05-17 13 3 06-06-13 TBPE~~.::.....F-4097~~~~~~~ ---<- • F'tNCE: UN[ U---------~===~==~---------H www.howlandoompa.l'\les.com ------- " - • • - TIES = SURVEY LINE • 06-14 13 FIELD OATE BOO< ,,, PAGE sl DRAWN EJY: LAF. "' "' CHECKED BY: JOB No. 221J1.24 13 J.S. SHEET: 2 or 2 HOWLAND ENGINEERING AND SURVEYING CO. EXHIBIT"A-23" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAlNED TRACT 23 (VAQUILLAS RANCH A WELLS No. 27, No. 36, No. 146, No. 149, & No. 158) 639.04 ACRES A TRACT OF LAND CONTAINING 639.04 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 276, G.T. Black, Abstract 2552, Webb County, Texas, and being more particularly described as follows: BEGINNING at a found iron rod on the West right-of-way line of Ranch Road 2895, which bears N 52°54'37" W, a distance of 838.32 feet, from the Vaquillas Ranch A No. 36 Well; THENCE, N 89°34'02" E, along as existing fence line, a distance of5,282.71 FEET, to a found concrete monument, for the Northeast comer hereof; THENCE, S 00°10'23" E, a distance ofS,279.75 FEET, to a point for the Southeast corner hereof; THENCE, S 89°33'08" W, a distance of 5,260.79 FEET, to a found 2" pipe, for the Southwest comer hereof; THENCE, N 00024'40" W, a distance of 5,281.06 FEET, to the POINT OF BEGINNING, containing 639.04 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET I OF2 H:\HOWLAND\SURVEYING DEPARTMENl\Jobs\20 \ 3\22 l3 l .25-13\22131.25-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box45112B (78045) J Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 ! TBPL5 Firm Registration No. 100464-00 EXHIBIT "A-23" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 23 (VAQUILLAS RANCH A WELLS No. 27, No. 36, No. 146, No. 149, & No. 158) 639.04 ACRES . WEBB COUNTY, TEXAS I ! ~ • )i I~ I ~ ~ SURVEY 1694 F. SPEED ABSTRACT 2461 '~"' c~mt• I 1 I j --- -- Y 0 '""' ''o" Rod ~~~--.~~~~--'..,.;;.;.-,;;;;;....;;,_..;;;;;~~~~~~~~ P:::l',: l. N 8V'34'02• E - 5.282.71' Mo""m~t-, l ......------- N 52'5" '37• YI-..- ' , , I;;;; 8JB.J2' ,-:;¢'-VAQUILLAS I >< 655 RANCH ANo.36 VAOUlllAS RANCH A No. 27 -¢- VAQUIUAS • RANCH .I A No. 14 .I YAQUI LI.AS -¢- A ~~C~49 .., ~I lo CONOCOPHlLLIPS COMPANY ~ 0 ~ ' i. VAQUILLAS RANCH LEASE 199129-001 26,622.79 ACRES (CAUED) RETAINED 839.04 ACRE Ut«T "' '"'"' ·"' """'"' VAQUILLAS ...' Nii ...... "I -¢- RANCH j:i ~.: t; i II A No. 158 SURVEY 276 0 "'ui 0'1 G.T. BLACK ABSTRACT 2552 ~ U> "'"'!ii UJ u !:! • z . WEBB COUNTY, TEXAS VAQUILlAS RANCH A No. 146 ci -¢- .I (BHL) I I VAOUILLAS VAQUJLlAS RANCH A No. 20 RANCH I 7 ANo.1460 (SHL) ,_ ---- ----&-1---------------------------'9'-- s w ,.. ~I ---- --- "l:r-- round 2" 89"33 08• 1 5,2.60.79' :\ \ Pipo VAQUILLAS -¢- RANCH ti· .. 1 No. 174 SURVEY 226 ·1 • I I G.T. BLACK ABSTRACT 2550 GRAPHIC SCALE :500 9 2'0 ~ 1000 '~ °l".•..W;;,,,jwwi . I ( ti rn;r) . LEGEND RoYlslon Doto HOWLANDENGINEERING AND SURVEYING CO. ll!PEArm~Ni>.F-40ll"f l8Pt.11Arm~Ho..1004&4-00 0 -¢- ;o HDIUZOHTAL WELL SURFACE LOCATION wru. UHIT UHE ' 04-11 1.'.5 05-17-IJ 06-06-1.'.5 711~N.-A- Lo-TX.19001 P.O!fl.722.0411 ftMCC UMC 08-14-13 www.howtandeompanles.com WARNING: BASIS Of SD.RING: G.?.S. Tx. South Control Zon ... NAD.-27. "" SUMY UHE 5 11 27-1.'.5 nus P\,lil w.y NOT SKlW MJ. CROSSJjCS or Pl'El.JNES Oii CAil.ES. HOlltNIO DIWiEl'.laNC FIElD [).t.7£ PAGE" DRAWN BY: LAf. "" "" CHECKED B'f: JOB No. 221J1.25-1J J.s. SHEET: 2 OF 2 Ho ... ~1 ~tf!J., IT\1:.~Wf.~1 . 'WWJl1..-m@~J1f~fll:b.Jt ENGINEERING AND SURVEYING CO. EXHIBIT "A-24" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 24 (VAQUILLAS RANCH WELLS No. 16, No. 164, No. 174, AND VAQUILLAS RANCH A WELLS No. 111, No. 116, & No. 125) 633.38 ACRES A TRACT OF LAND CONTAlNlNG 633.38 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 228, G.T. Black, Abstract 2550, Webb County, Texas, and being more particularly described as follows: BEGINNING at a found 2" pipe on the West right-of-way line of Ranch Road 2895, which bears N 73°18'04" W, a distance of2,034.65 feet, from the Vaquillas Ranch No. 174 Well; THENCE, N 89033'08" E, a distance ofS,260.79 FEET, to a point for the Northeast corner hereof; THENCE, S 00°10'58" E, a distance of 5,254.72 FEET, to a point for the Southeast corner hereof; THENCE, S 89"32'59" W, a distance of 5,240.13 FEET, to a point under an existing fence on the West right-of-way line of said Ranch Road 2895, for the Southwest comer hereof; THENCE, N 00°24'29" W, a distance of 5,254.89 FEET, to the POINT OF BEGINNING, containing 633.38 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 ,. !; .~-1., ;.;;.: ;,ii-~ ~:~1 /:~1 /..- .~; SHEET! OF2 H:\HOWLAND\SURVEYlNG DEPARTMEt-rruobs\2013\22131.26-13\22131.26-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451128 (78045) . Laredo, TX 78041 P. 956.722.4411 1 F. 956.722.5414 TBPE Firm Registration No. F-4097 ; TBPLS Firm Registration No. 100464-00 EXHIBIT "A-24" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH L.£ASE 199129-001 N RETAINED TRACT 24 {VAQUIUAS RANCH WELLS No. 16, No. 164, No. 174, AND VAQUIUAS RANCH A WELLS No. 111, No. 116, & No. 125) 633.36 ACRES WEBS COUNTY, lE< BICllOOMG Found 2· Pipe u-------~-~~::_-:::::~~ VA~~ ----- - -•....7.!'19• >OJ,-~·. N 89"JJ'oa· E ... 5.2eD.79' A No. 146 II§ I -¢- VAQUILLAS RANCH A~ ' I I I .... VAOUILLAS -¢- A RANCH ____ No. 20 >< 1,945' No. 174 I" SURVEY 274 J" SURVEY 228 G.T. BLACK ABSTRACT 2551 G.T. BLACK 0 I ABSTRACT 2550 " ~., " -¢- WEBB COUNTY, TEXAS -~g'" J ,I VAOUILL.AS RANCH No. 164 "'~~- -~ 1· " 1~ I I CONOCOPHILLIPS COMPANY ~~t VAQUJUAS RANCH LEASE 199129-001 "' "''"~ ~ ! 26,622.79 ACRES (CALLED) ::>"'"' "' . ':! ""II~ RETJ.tiED 8JJ.J8 N:R£. UNrr -¢- ..~ "'uui z ' ~ VAQUILl.AS 1·~ VAQUILLAS RANCH u ~la -¢- RANCH A No. 116 A No. 125 1·~ 11 -1 1· -¢- VAQUILLAS -¢- VAOUILLAS RANCH I II,[ RANCH A No. 111 ~------ No. 16 -------· s 89"32'~9· w ... !5,240. 13' I • I I VAQUILLAS -¢- RANCH I I. I No. 10 II SURVEY 227 C.C.S.D. & R.G.N.G. R.R. co. VAQUIUAS~ I• •• ABSTRACT 1133 RANCH I No. 12 T Il I I ~ I I soo -- ~--A-" GRAPHIC SCALE ~ soo ·~I -I VAQUILLAS -¢- ~c1~ I I ( N FUT) 1 1'><11 ~ 1000fl. . I LEGEND Revhlon Oat• HOWLAND ENGINEERING AHO SURVEYING CO. TBPEFnnRoQllhlb'IMl>.F.-r TllPl..Sfm~Nc>.•~ _,_ 0 -¢- = HORIZONTAL WELL SURFACC L.OCATlOH wru UNIT UHE ' (M.-11-13 m«:£ UNE 7 a 1 5 K . - - ~lX.78041 P.~722M11 www.hoWlandcompanles.com ---- ------- = SURVEY Uff[ ~ BASIS OF BE'ARING' G.P.S. Tx. South Zono, N.A.D.-27. llG Pl.AT 111.Y l!OW MJ. CROSSINGS or P!l>[ll;£S OR CIBl.!:S. l/OMNID EHGff.DlllG Niil SU~ CO~ IHC. A.SSIJMES NO RE?iPOIGlllUl'I TO LOCATE Wfl..tfE Ofl Cla.E CROSSINGS. flElD tlATE "'o' PAGE s ORAWM Br: LM. ~~~~~~CO~:~ rtl: OWHE11SHP OR "' " "" CHECKED SY: J.S. JOB No. 22131.25 CIJPTRICHT HOM.NID o.'QH[ERlllG Al«> ~ co~ INC. 201lC SHE.ET: 2 OF 2 " , U11[l,/1{\ ~\DC't;:) HO 'WWA~~~-~w ~1Lz.-.· ENGINEERING AND SURVEYING CO. EXHIBIT "A-25" FIELD NOTES FOR CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 25 (VAQUILLAS RANCH WELLS No. 10, No. 11, No. 12, VAQUILLAS RANCH A No. 80, & No. 99) 640.00 ACRES A TRACT OF LAND CONTAlNlNG 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 227, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1133; and Survey 273, C.C.S.D. & R.G.N.G. R.R. C.o .• Abstract 1141, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 33°34'02" E, a distance of 1,360.57 feet, from the Vaquillas Ranch No. 12 Well; THENCE, S 00°26'16" E, a distance of 4,991.78 FEET, to a point for the Southeast comer hereof; THENCE, S 89°36'57" W, a distance of332.74 FEET, to a point for a deflection left; THENCE, S 89°36'41" W, a distance of 5,270.89 FEET, to a point for the Southwest comer hereof; THENCE, N 00°05'03" W, a distance of 4,985.84 FEET, to a point for the Northwest corner hereof; THENCE, N 89'32'59" E, a distance of 5,572.87 FEET, to the POINT OF BEGINNING and containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H;\HOWLAND\SURVEYJNG DEPARTMENT\JobsUO 13\22131.27· 13\22131.27-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue : P.O. Box451128 {78045) 1 Laredo, TX78041 P. 956.722.4411 J F. 956.n2.5414 TBPE Finn Registration No. F-4097 : TBPLS Finn Registration No. 100464-00 EXHIBIT "A-25" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 25 (VAQUILLAS RANCH WELLS No. 10, No. 11, No. 12, VAQUILLAS RANCH A No. 80, & No. 99) 640.00 ACRES WEBB COUNTY, TEXAS a 1[ ' I' ,,.,' ~I C) -¢- Pi VAQUILLAS .-\~~ SURVEY 226 -¢- VAQUILLAS RANCH RANCH ' I' A No. 125 - :z; t; ~ [· G.T. BLACK ABSTRACT 2550 A No. 116 [;'~O'i !3"' .... ·1 l ' ~ "'"~ ti l -¢- VAOUILLAS I SURVEY 274 "oj C) ti :j l -¢- VAQUILtAS RANCH No. 16 RANCH A No. 111 I I ,__ _______ G.T. BLACK ABSTRACT 2551 ~--- I N 89"32'9• E ,., r5$12.t!n" f .v' ' a.I ·% .I -¢- VAQUILLAS RANCH ~· ~1 I ~/-, 4;:~. ~ GPODIT or'"') ~ £lJH£ OR CIBl.E Cl!OSSl«l$. ~~'=.c~~~~~ ffl: a..wtSHI' OR FJELD DATE "" "' "'•I• . DRAWN BY: LA.F./S.l.M. o-IECKED BY: J.s. JOB No. 221Jl.27 COFYRD€£RtlC ~ Sl.RM'EYIHG CO.. NC. 20!JCI SHEET: 2 OF 2 " HOWi~i~[x_g ENGINEERING ANO SURVEYING CO. EXHIBIT"A-26" FIELD NOTES FOR CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 26 (VAQUILLAS RANCH WELLS No.15, No. 18, No.154, No. 177, No. 182, AND VAQUJLLAS RANCH A No. 175, & No. 231) 635.36 ACRES A TRACT OF LAND CONTAINING 635.36 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 988, J.H. Fuller, Abstract 2593, Webb County, Texas, and being more particularly described as follows: BEGlNNING at a point which bears N 59°15'10" W, a distance of907.68 feet, from the Vaquillas Ranch No. 18 Well; THENCE, N 89°36'41" E, a distance ofS,270.89 FEET, to a point for the Northeast comer hereof; THENCE, S 00°06'58" E, a distance of 5,240.20 FEET, to a point for the Southeast comer hereof; THENCE, S 89°23'40" W, a distance ofS,272.32 FEET, to a point for the Southwest comer hereof; THENCE, N 00°06'07" W, a distance ofS,260.16 FEET, to the POINT OF BEGINNING, containing 635.36 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 ,. r~ ~ I . I ' .•...,u.:• . l _..·"I' f '.4 ;.. '} l· . 1 SHEET 1 OF2 H:\HOWLAND\SURVEYING DEP ARTMENl\l'Qbs\2013\22131 28-13\22l l 1.2g.. l3,doc www.howlandcompanies.com 7615 N. Bartlett Avenue ; P.O. Box451128 (78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 ; TBPL5 Firm Registration No. 100464-00 EXHIBIT "A-26" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 26 (VAQUILLAS RANCH WELLS No. 15, No. 18, No. 154, No. 177, No. 182, AND VAQUILLAS RANCH A No. 175, & No. 231) 635.36 ACRES WEBB COUNlY, TEXAS -¢- I • VAOUILl..AS RANCH " t' A No. 99 I " VAOUJLLAS I -¢-RANCH A No. 231 " I SURVEY 986 J.H. FULIER " ABSTRACT 2593 I WEBB COUNTY, TEXAS I • -'~No. A VAQUlllAS RANCH 182 ~>< .~. V VAQUILlAS RANCH A No. 175 -'1---'1- -'/; "1--- "1- \ z CONOCOPHlLLIPS COMPANY VAQU!LLAS RANCH LEASE 199129-001 26,622.79 ACRES (CALLED) " \ .. VAQUILlAS REl'AliED 835.38 ACRE UNIT "\ >'< RANCH V No. 154 \ ,• VAOUILLAS >'< RANCH \" I V No. 177 \ [ I -- ---- -- ~~---------,s~..-"'2.>""°'<0"'='·~w~~-:•~;1.:!'7':'2.32~.--"""-------t~- ~~ ' ' I 0""' 01"' '' "'""' :~:" SURVEY 229 C.C.S.D. & R.G.N.G. R.R. CO. I [;' "'"' . "'~ ABSTRACT 1132 GRAPffiC SCALE '' T "'~':\! I {IN f'!:rT) W~ • IODIJR. I' l.£GENO R•vblon ""'' HOWlANtlJJ ENGINEERING AND SURVEYING CO. lllPEFtmRoglonlion/ob.~1 Tlll'l.SFtm~ND.11XM64-0:l 0 -¢- ,. HORIZONTAL WELL SURFACE \.OCATIOH wru UHIT UHC ' 0'4-11-1.3 7815N._ll_ t..ot.io,TX.7'°'1 P.ll:le..n:z.M\1 F£HCE LJH[ www.howlandcompanles.com WARNING: BASIS OF BEAAING: C.P.S. Tx. South Central Zone. NAD.-27. ""' SURV£Y UN£ nG PUJ W.1 NOT SHOlf NJ. alOSStfCS Of' PIPEIJNES 00 Cla.l:li. HOWl.HiO ENOINCERING FlElD DATE BOOK PAGE SJ DRAWN BY: LA.F. NID ~ CO~ t1C. ASSWCi NO RESl'ONSlllUIY T1l UlCA.l( PPllJNE OR CA!J.£ C!OSSINCS. NO ~ IS llO!E8'1' W.OC l!El;NIDING ClRROIJ OR ACTiw. SURl',ia/l.llHEJW. U3SOlt. nns llRAJiTfC w« DCCWslVEl.T fllf! ~ ~ °""' ru:OllNERS>IP Off co. U'. '" '" " CHECKED BY: J.S. JOB No. 22131.28-lJ COl"l'RICHT ltOWWll ENCll£El!fiG AHO Sl.Rt'E'l'M:: co., t«:. 201JC SHEET: 2 OF 2 HOWLL~~,~~~ ENGINEERING AND SURVEYING CO. EXHIBIT "A-27" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 27 (VAQUILLAS RANCH A-12 WELLS No. 168 & No. 202) 614.74 ACRES A TRACT OF LAND CONTAlNING 614.74 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 987, J. Poitevent, Abstract 2061, Webb County, Texas, and being more particularly described as follows: BEGlNNING at a point which bears N 13°58'44" E, a distance of 1,605.58 feet, from the Vaquillas A-12 Ranch No. 168 Well; THENCE, S 00°30'00" E, a distance of 5,218.37 FEET, to a found 8" fence comer post, for the Southeast comer hereof; THENCE, S 89°22'22" W, a distance ofS,138.40 FEET, to a point for the Southwest corner hereof; THENCE, N 00°06'58" W, a distance of 5,240.20 FEET, to a point for the Northwest comer hereof; THENCE, N 89°36'57" E, a distance of 5,103.29 FEET, to the POINT OF BEGINNING, containing 614.74 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 ;.i. _:~ i- ~ . • r·~i SHEET 1 OF2 H:\HOWLANDISURVEYING DEP ARTMENl'Jobs\2013U2l3I.29-13\22131.29-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Boll 451128 (78045) i Laredo, 1){78041P.956.722.4411 1 F. 956.722.5414 TBPE Firm Registration No. F-4097 i TBPlS Firm Registration No. 100464-00 EXHIBIT "A-27" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 ~ RETAINED TRACT 27 {VAQUIUAS RANCH A-12 WELLS No. 168 & No. 202} 614.74 ACRES WEBB COUNTY, TEXAS I I SURVEY 273 ' ' C.C.S.D. & R.G.N.G. R.R. co. I SURVEY 227 I ABSTRACT 1141 ,__! • r=~\ C.C.S.D. & R.G.N.G. 1 R.R. CO. ABSTRACT 1133 1 _____ , ___ .,,--.,,--r . ~\__ VAOUILLAS _..-'1. __ .,, N 89"38"F E \ ... ~.103.29' RANCH ------_,,,,_*"':..:....~~~....::..=..::::.::..~~::.:.::::::::..~~~~~-.~~ A-4 No. 173 _......,,--- '1.---1- ""1 '' "'/ • J. .. -I .+~ \ VAQUILI.AS ~! ;,~· "1 RANCH 168~ I ;e:I • A-12 No. (BHL) ,.,f I SURVEY 988 J.H. FULLER ABSTRACT 2593 1• , 0--- I SURVEY 987 1 VAOUILLAS RANCH A-12 No. 168 401' -¢- VAQUlUAS l •1 J. POITEVENT (SHL) RANCH ABSTRACT 2061 A-4 No. 121 WEBB COUNTY, TEXAS _rt_ VAQUJUAS RANCH VA No. 175 • l :I: " I A VAOUIUAS L ___ _ i CONOCOPHJLLIPS COMPANY " I VAQUILLAS RANCH LEASE 199129-001 i.r· RANCH A-12 No. 202 ~ !} 26,622.79 ACRES (CALLED) RErAIN£D 814.74 ACRE utlT ...• I " I VAOUILLAS I RANCH C No. 64 f - - ~-~~- ~------::-:::=~r":-:-:.=-=-----~;;:=-t-t=l= S 89"22'22"' W - 15,138.40' Found 8" fanca Post SURVEY 230 W.R. AU.DREDGE ABSTRACT 2523 I. ~------ .'1: GRAPHIC SCALE :i.oo 0 2SO SOO 1000 'r-.•.«w,,,)--1 I (tll'!FI) I: l£CtNO R•vl•lon HOWLAt~l[l) 0 -¢- = HORIZOKTAL WEU. SURFACE l.OCATIOlt Q-1.-09 \J ENGINEERING AND SURVEYING CO. TDPEFlmi~Na.~ 1BPLS F'""'Rldsh6lnNa.1~ 76\SN._A_ 16odo.1X.78l)O\ F>.PS&.722Mll ""' UNIT LINE f'I"HCE Ul'IE www.howlanck:ompanles.ccm WARNING: B.o\SIS OF BEAR!liG; G.P.S. Tx. South Central Zone, NAD.-27. "" SURVEY UHE Tlf:S PL» W.T NJT S>10111 ALL C110SS11c:S Of' P'PEl.JtCS OR C1aLS. tlOWlAllD £NCIN(£~ ""'° ~ CO., INC- MSl.MCS 1«1 ~!11.Jl'r TO 1,0CATI: Pffl.H: Oii CIBL.E Cl!OSSIHGS. FlElD OATE 'OOK N' "''". OAAWH BY: tAF. ~~H=.c~~~i::.=~rorr:-U'~Dlt "' " CHECKED SY; JOB No. 22131.29-IJ J.S. COPmlClfT "OMJ,HI) EHCHDll'IC AN> SUIMwt: CO.. tlC. 20\JC SHEET: 2 or 2 HOWLA~JD ENGINEERING AND SURVEYING CO. EXHIBIT "A-28" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129..001 RETAINED TRACT 28 (VAQU1LLAS RANCH A-6 WELLS No. 41, No. 57, No. 229, VAQU1LLAS RANCH H No. 28, No. 109, VAQU1LLAS RANCH H No. 224 A & V AQUILLAS RANCH H No. 46 C) 640.00 ACRES A TRACT OF LAND CONTA1NING 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 31, C.C.S.D. R.G.N.G. R.R. CO., Abstract 1043; and Survey 26, R.0. Bamesley, Abstract 2133, Webb County, Texas, and being more particularly described as follows: BEGINN1NG at a point which bears N 58°26'33" W, a distance of 1,644.66 feet, from the Vaquillas Ranch A-6 No. 41 Well; THENCE, N 89"29'46" E, a distance of 5,358.90 FEET, to a point for the Northeast corner hereof; THENCE, S 00°29'05" E, a distance of2,525.78 FEET, to a point for a deflection left; THENCE, S 01°28'37" E, a distance of2,670.53 FEET, to a point for the Southeast comer hereof; THENCE, S 89°32'59" W, a distance ofS,399.74 FEET, to a point for the Southwest comer hereof; THENCE, N 00°32'40" W, a distance ofS,190.85 FEET, to the P01NT OF BEGINNING and containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\.SURVEYING DEPARTMENNobs\2013\22131.31-13\22131.31-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue : P.O. Box451128 (78045) Laredo, TX78041P.956.722.4411 F. 956.722.5414 TBPE Arm Registration No. F-4097 TBPLS Firm Registration No. 100464-00 EXHIBIT "A-28" CONOCOPHILLIPS COMPANY VAQUJUAS RANCH LEASE 199129-001 ~ RETAINED TRACT 26 (VAQUIUAS RANCH A-6 WEllS No. 41, No. 57, No. 229, VAQUJUAS RANCH H No. 26, No. 109, VAQUJUAS RANCH H No. 224 A & VAQUJUAS RANCH H No •.46 C) 640.00 ACRES WEBB COUITTY, TEXAS ' (' I' J;j ' I' -¢- VAQUJLLAS ~~~J B ~~ • -\BBGINHING SURVEY 31 C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 1043 WEBB COUNTY. TEXAS ' I' ' A - - - - - - - -~·!:'__,J::....·'-----..,---..:•:..::119"29:..:;:;.;'... ::....:•;..;-.;...:5.::•="'="0::.'----------i I o"'o"' r- 01 ', ',~~ I "'"'"' N(5C\J ""'<'6'· I bl, CONOCOPHIWPS COMPANY ..,.., >- . t; !3s: ...... ·a~,...U~ ·- VAQUIUAS RANCH LEASE 199129-001 ";l ·(Js">-..if- co: VAQUILLAS '-.., -----1~1' ____':...'-Q-A-6 No. 41 1 RANCH 26,622.79 ACRES (CALLEO) RETAttED &40.00 JafE. UNIT 5 "'"' "'01"' I§.,, VAOUJUAS ' 01 RANCH "' A-6 No. 229 -¢-.(BHL) VAOU!LLAS ~ RANCH ~ .0 VAOUILL.AS -o-A-6 No. 57 !! RANCH A-6 No. 229 "' (SHL) ~ ------------------------ ----- VAOUILLAS z VAQUIUAS RANCH RANCH -¢- H No. 109 -¢-H No. 46 C SURVEY 274 G.T. BLACK ABSTRACT 2551 SURVEY 26 R.O. BARNESLEY VAQUILLAS ABSTRACT 2133 RANCH -Q-H No. 224 A VAOUIUAS -¢- VAOUILLAS ,_________ vr'-iHNo.28 RANCH RANCH A-6 No. 83 ~.-----------s---,-.~.,.-.:-w---o~~.~J~.7.----------1... ... VAOUILLAS ' RANCH -¢- H No. 96 CRAPlliC SCALE VAQUILL.AS 1; ~ Joow·---- ' o"'°~ (IN Fm) 1 Inch - 1ooon VAOUILLAS RANCH -¢- H No. 225 RANCH -¢-H No. 115 LEGEND HOWLAND ENGINEERING AND SURVEYING CO. TaPEFm.~No..l'-4097 n?Ull'tm~N<>.1~ 0 -¢- ., l'IORl2Dl!'IAL W<:lL SURrACE LOCATIOH ~ UNIT LINE 71115"1.-- 1M.io. TX.7&04! P.-722.MH FENCE UNE WARNING: BASIS or www.howlendcompanles..com BEARING: G.P.S. Tx. South Zono, N.AD.-27. "" SURVEY LINE 'MS PlA7 NAY NOT ~ ALL CROSSINtS Of PIPEl#£S DR aa..E5. liDWlNftl ~ flElD O.ATE PAGE ~I OAAWN BY; LA.F"./S.1.1.1. AHO SUIMYflG co~ INC. ~ ND R£:Sl>ONSIBl.JI ro LDCUE PffUI( OR C>aL CROSSINGS. ~ll~~~~~d:x:o~~.EJW. FD: OIM1!SllP OR "' "'' OiECKED SY: J.S. JOB Ne. 221J1.Jl 13 COP'l'l!IGNT lfOlllNID DK:11ED!1NC ANO SUIM:'l'\NC CO~ tole. 20!lC SHEET: 2 OF 2 HOWUi\~;~~ ENGINEERING AND SURVEYING CO. EXHIBIT "A-29" FIELD NOTES FOR CONOCOPBILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 29 (VAQUILLAS RANCH B WELLS No. 96, No. 115, No. 162, No. 226, VAQUILLAS RANCH D No. 117, No. 153, No. 223 & VAQUILLASRANCBNo.17) 618.16 ACRES A TRACT OF LAND CONTAlNING 618.16 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 26, R.O. Baroesley, Abstract 2133; aod Survey 273, C.C.S.D. & R.G.N.G. R.R. C.O., Abstract 1141, Webb County, Texas, and being more particu]arly described as follows: BEGINNING at a point which bears N 33°41 '33" E, a distance of 1,796.29 feet, from the Vaquillas Ranch H No. 162 Well; THENCE, S 01'28'37" E, a distaoce of2,576.14 FEET, to a point for the Southeast comer hereof; THENCE, S 89°10'24" W, a distaoce of 10,341.47 FEET, to a point for the Southwest comer hereof; THENCE, N 00'26'16" W, a distaoce of2,643.65 FEET, to a point for the Northwest comer hereof; THENCE, N 89°32'59" E, a distaoce of 10,294.50 FEET, to the POINT OF BEGINNING and containing 618.16 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYJNG DEPARThffi.N"Nobs\2013\22131.32-tl\22131.32-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue i P.O. Box451128 (78045) I Laredo, lX78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 I TBPLS Firm Registration No, 100464-00 SURVEY 274 G.T. BLACK • ABSTRACT 2551 • I VAOUll.l..AS ~\ RANCH .JS· 1:; ~~~~ No. 12 T 0 No. 223 VAOUILLAS RANCH VAOUILLAS °ta <-i 1;j ~z RANCH -¢-H No. 115 RANCH ;... -¢- H No. 226 H No. 162 o " "' "? "' t--~ ~ ~~o- "" E""o;~ .. VAQUILLAS RANCH J~ !5c::i~Ul SURVEY 273 A-4 No. 150-¢- ,..[Zl .. ti}~ ~ C.C.S.D. & R.G.N.G. R.R. co. [;:el" c..i ABSTRACT 1141 "'"Cl ::> .. . "' "' ~';j GRAPHlC SCALE I SURVEY 25 "~ I• C.C.S.D. & R.G.N.G. R.R. CO. • • LJ..3 ';,-- 'j ( IN filT) 1 .... ~ • 1000 Fl I >--\ ' .-J ABSTRACT 1042 I I I LEGE:NO R•villon 001• HOWLANDENGINEERING ANO SURVEYING CO. 18PERmoRogftltolkwl"°·-' lllPUIFmRo;lolrftontlo.1~ EXHIBIT "A-29" CONOCOPHILLIPS COMPANY 0 -¢- : HORl20KTAL WEU. = SURrAC£ LOCATION lfl'[ll ., UNIT UM£ 04-12-13 05-17-13 08-06-13 1016H.-.S,O,- i..mlX.111(141 P.llC.0.1n.4<11 VAQUILLAS RANCH LEASE 199129-001 - RETAINED TRACT 29 <- - " rt:NCC UN[ 10-18-13 www.howlarnlcompanles.com - - - - - - - =TIES (VAQUILLAS RANCH H WEUS No. 96, No. 115, No. 162, • SURVEY UNE 11-::n-13 ~ BASIS OF' BEAAINC: G.P.S. T~. South Zone, N.A.D.-27. No. 226, VAQUILLAS RANCH D No. 117, No. 153, No. 223 & 'l1ms PlAT W.'1 HOT 3'°" l i l C!IOSSINC:s Of PIPD.JllCS OR t.oa.e. HOWl.NIO UONl'.ERlllC FlElO DATE 800' PACE(,) ORAWN SY: u..r.;s.1.1... NICI $lJM'l'l1IC CO., lo :i E-< ' 0 [;'ci" "' ... "''" ioi I' "'" "'>-~in [;' 0 "'"'"' ,,;~ ' "' ;:i~N ."' .,; t.i SURVEY 260 I ~~t; t.i ERNEST C. GASSER '' '"ioi.,!;; VAQUILLAS -¢- RANCH A-6 No. 57 ABSTRACT 2607 I' §c!~ o~ ' "'"t.i I'----- N 89"15'20• E ,.. ~,37!5.43' I ---- I.. CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 -¢-A-6 VAQUILLAS RANCH No. 30 i... ' 26,622.79 ACRES (CALLED) REl'AINED 323.87 ACRE UtlT ' ~ ji ~ 0 VAOU!LLAS ;; !! " (O!j ~ ,. "' 0 z --~:._ __ ;qA-6 No. 83 VAOUILLAS RANCH RANCH -¢-A-6 No. 228 "' '" 25 ~ "'"'"'... .,,;'J.•-'~,.. "' . "' "'""' ,.~ 1:0 ~9'"1" i!;;: >-Ze-- [;' " ~--~I>· [;' ci" !3"' ~ S 89"28"29• W ,.. S.347.54' "''" ioi :::i.:d~ (/l o,,, •Cll '"< :\ ' ' (/l ".,; -~ I~ I' t.i t.i ' ' ' SURVEY 51 -¢- VAOUILLAS I c.c.s.D. & R.G.N.G. R.R. ABSTRACT 1045 WEBB COUNTY, TEXAS co. I' RANCH ' ' H No. 162 ' I I ' '' ' ~-----+----------------------- GRAPHIC SCALE . • = = =I I ~ ·~ SURVEY 24 ~-·:w.J-1 R.O. BARNESLEY (Ill ~ET) ABSTRACT 2134 l Ill<~ - 1000F'I.. LEGEND Revision Do• HOWLAND ENGINEERING AND SURVEYING CO. TllPEAm~-F-40ll'I 1N'LS,,...~H0.1004M.(ID 0 -¢- =SURrACE HOIUZOHTAL WElL WW. LOCATION UMIJ LIME ' 04-09-13 7&1~H.-A ...... • i...:b,ll(.7!041 P.~7Z1M11 ------- ' """ ""' www.how1andcompanles.com WARNING: BASIS OF' BEAAING: G.P.S.. Tx. South Central Zone, NAO. 2'. -- TIES SURV£'r UHE l11IS PIJIT W.Y HOT S»0W Ml. CROSSJ'!l:S Of" PIPEUHES OR Cla.£S. llOlll'IHfO ~ >JjO ~C CO.. ~ ASSIAl£S HO R[5PIJtlSllllUT'I' TO 1..0CA.n'. PP0..M: OR Cla..E CllOSSINCS. FlEl.D OAT( ,,, ""'" PAGE" ORAWN 6"1': LM. HO CU1M 15 HCREllT W.0C ~ C\R!£NT OR JCfUlL Sl.wJiCC/W(C!IA(. I'll ~ OR llSSIJR. TlllS OllAIYl'IG IWJ!: OICW5fYD.Y flJR !11.AJNCTCW llESIJlR:lS ~ CO. LP. "'' '" CliECKED BY: JOB No. J.S. ~ HOWl.AICJ DICll€tRN: NtO SUIMYll'!G co., N::. 20\3C SHEET: 22131.3.l " ' "' ' Ho.·.•••J 'WWj :~.i. ,/'IA~ ~r1~~~r''; ~-~ ~~ --~El \J~. ENGINEERING AND SURVEYING CD. EXHIBIT "A-31" FIELD NOTES FOR CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 31 (VAQUILLAS RANCH A-4 WELLS No. 150, No. 167 & No. 227) 567.81 ACRES A TRACT OF LAND CONTAINING 567.81 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 25, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1042; and Survey 273, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1141, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 34°45'22" E, a distance of 820.70 feet, from the Vaquillas Ranch A-4 No. 150 Well; THENCE, S 01°11 '23" E, a distance of2,428.19 FEET, to a point for the Southeast comer hereof; THENCE, S 89°36'57" W, a distance ofl0,373.11 FEET, to a point for the Southwest corner hereof; THENCE, N 00°26'16" W, a distance of2,348.13 FEET, to a point for the Northwest comer hereof; THENCE, N 89°10'24" E, a distance of 10,341.47 FEET, to the POINT OF BEGINNING and containing 567.81 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 SHEET I OF2 H:UIOWLAND\SURVEYJNG DEPARTMENI\Job.s\2013\22131.34-13\2213 l.34-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue : P.O. Box451128 {78045) . Laredo, TX78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registratlon No. F-4097 i TBPLS Firm Registration No. 100464-00 T T ' ' SURVEY 26 VAQUILLAS r_:i z LO .., I R.O. BARNESLEY ABSTRACT 2133 RANCH H No. 162 -¢- - '°~o . >- O::UE-< 0 •' SURVEY 273 VAQU!LLAS RANCH f;' ... "~ !. C.C.S.D. & R.G.N.G. R.R. CO. VAOUILLAS I' ~~~~ -¢-H No. 115 @?.! RANCH ABSTRACT 1141 -¢- H No. 226 ~ ~ I~ ~ ' u N 89"10'24• E ... 10_341.47" SURVEY/UNIT LINE VAQUILLAS - .. - .. • RANCH I N J4"45'22" E d A-4 No. 1 S7 VAQU\LLAS '!;;I 620.70' ~ : ~ ( 8Hl) _A V RANCH A-4 No. 227 ..,l 1/ / ... ~o\!ll'.- ~ l'- ~ (") . ~ gg ~....., I 1 ~ ~ t CONOCOPHILUPS COMPANY VAQU!LlAS RANCH LfASE 199129-001 26,622.79 ACRES (CALLED) 0 VAQUILLAS RANCH -¢- VAQUILLAS RANCH A-4 No. 150 ~ N z e-.. I REr.-JNED 567.81 N:;fif. UNIT A-4 No. 167 ...' ~~~ .; ! + _ ,. - , (SHL) "'""~ ci I~I - - ' \ y, _J I I SURVEY 25 C.C.S.D. & R.G.N.G. R.R. co e 0 z ABSTRACT 1042 . 0 '-! I ,-- '1..--'f, \ I I WEBB COUNTY, TEXAS "' ,. .... {.) ~~~ c..::,......:~ ..-- ..-- I SURVD'/UNIT LINE s 89"36'07" w 10,373.11' ~~t; "'"'"' I """' H con: Cl aJ~IO 01 ;::3 C\l I I ,._ \ I 1 I 1 _A_ V VAQUILLAS •• ...O! ""' "' ~~ >- ~ t) I I1 A-4rv.:.:o~H173 f;' g;=r:~ SURVEY 987 J. POJTEVENT VAQUILLAS RANCH 1 I• UJ..; gj i' 1 ABSTRACT 2061 . A-12 No. (BHL) 1se-¢- 'ir 1 SURVEY 232 C.J. BERGSTROM < 1 >< VAOUILLAS RANCH 0 1 ABSTRACT 2148 VAQUILLAS VAQUILLAS RANCH -¢-A-4 No. 151 ~ - J GRAPHIC SCALE 2U° 1o::io 2o::io • A-12 No. 168 1 I -¢- RANCH (llllUT) • \ (SHL) 1 1 A-4 No. 121 , .... h .. 10001'\. LtGE:NO RHl1!on Dale HOWLANtt\9ENGINEERING ANO SURVEYING CO. EXHIBIT "A-31 CONOCOPHILLIPS COMPANY H 0 -¢- • HORIZONTAL Wtu. -•UNITUllE SURrAet LOCATIOll a WEU ,' 04-09-13 05-17-U OCl-06-13 •' TllPeFllmflogllnllontlo.~I Tlll'l..SFhn~Na.1C13"164-00 1~1~11.~A- lon.T W.Y J,. _'1" RANC 26,622.79 ACRES (CALLEO) ci <.,/I C No. 84 RErAINED 4eQ,44 N:;R£. UNIT ~ ;: ....~' : C') ~t?o- _ ... - ~ U - .. -;:::::-l==l/:::::="X-t=="/===l==l==l==l-l==l-l~x-x_!_x- ~ -*' I :I l VAQUILl.AS ~ VAQUIUAS "s 0 ~... ., g;q:~ '" u t; • / ...., 0,"'>1 1 1 {/)ti ~ ."ii ~I I : RANCH C No. 246 ST (SHL) "-¢- j' : (BHL) VAOUILLAS ' I RANCH A-10 No. 81 z / ' : I / j SURVEY 230 ~----...I...---:;-:::::::::::::-:;-".'.":~:'-:::---------?- s w ,.. ""- ""- W.R. AU.DREDGE I ABSTRACT 2523 i' PO;r 01\ 89"2&'29. 5.288.76' • • -I ~ I• I: SURVEY 231 c.c.s.D. & R.G.N.G. R.R. co. • 11 ABSTRACT 1116 I• [: • GRAPHIC SCALE I• T • l Wh • llXXlR I LEGEND Rn!slon Oat• HOWLAND ENGINEERING AND SURVEYING CO. $ = HORIZOHTAL \11£1..1. . ""'- SURFACE LOCATION ' TIIPEA.~WI 7&"N._A_ l...so.lX.1llOO\ P,1151!.722..«11 T'llPUlnm~-1(XM6+.CO -~,-- ~ ~~E~~E www.howlamk:cmpanles.corn ------- = TIES ,. ,. '" SUl!VE't UNE WARNING: B"SIS OF BEARING: G.P.S. Tx. South ~ntral Zone, NAD. 27. llllS PVoT llAV HOT St!O'll' ,l,U. CR0SSNCS Of PFllJNES CR aaLS. HCNIV"ID DQ.IEERN: NICI SlJfM:l1'IG co_ IMC. ASS1M:S HO RESPOtiSIBU1Y ro 1.DCATE PIPfl.HE CR aaL C!K:!S9NGS. FlaD OATE '"''' PAGE" "' DRAWN SY: LAF. ~ni:s~~~~~~~~=r:D.tttlP~ COP\'RC>{T lfOWlNIO Dlc:fl~ .<>ill SIJIM.WIC CO~ INC. 2013CI QI "' CHECK£D BY: JOB No. J.S. 221ll.JS ll SHEET: 2 OF 2 HoaQI 'WWJ~~ &~~ [~\J; t;\i ENGINEERING AND SURVEYING CO. '· ~:&f::-r EXHIBIT"A-33" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 33 (VAQUILLAS RANCH WELL A-10 No. 81, VAQUILLAS RANCH B-1 WELLS No. 23, & No.120) 382.64 ACRES A TRACT OF LAND CONTAlNING 382.64 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 233, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1117, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 42°39'42" W, a distance of 1,797.35 feet, from the Vaquillas Ranch 8-1 No. 23 Well; THENCE, N 89°08'54" E, a distance of 4,485.02 FEET, to a point under an existing fence line, for the Northeast comer hereof; THENCE, S 00°19'51" E, along an existing fence line, a distance of3,744.45 FEET, to a point for the Southeast comer hereof; THENCE, S 89°36'00" W, a distance of 4,459.86 FEET, to a point for the Southwest comer hereof; THENCE, N 00°43'00" W, a distance of3,709.15 FEET, to the POlNT OF BEGINNING, containing 382.64 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 I ' ~ SHEET! OF2 H:\HOWLAND\SURVEYING DEPARTMEN'Nobs\1013\21131.36-!3\22131.36-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451128 {78045) l Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414 TBPE Arm Registration No. F-4097 ! TSPlS Firm Registration No. 100464--00 EXHIBIT "A-33" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LfASE 199129-001 ~ RETAINED TRACT 33 (VAQUJUAS RANCH A-10 waL No. 81, VAQUJUAS RANCH B-1 WELLS No. 23, &: No. 120) 382.64 ACRES WEBB COUNlY, TEXAS I i I I I l I I I ~ I ll I SURVEY 24 SURVEY 25 I I R.O. BARNESLEY ABSTRACT 2134 C.C.S.D. & R.G.N.G. I R.R. CO. ABSTRACT 1042 I l --· I POlllT or ~ ---------- I N 89"08'54• E - -4-.485.02" ' ',~ ',~ t I '~.,p. I SURVEY 232 ,?. I C.J. BERGSTROM ABSTRACT 2148 """' :* '~.>. ',.si_.. ,·~-: I - J- I CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 26,622.79 ACRES (CALLEO) ~ ."' ;, f- - - -1.201'- - - -'.:¢- RErAIHED J82.M laf£. UNT :t "" ~~ VAQUlllAS ...' RANCH 8-1 No. 23 ==: l==- z ~ )( ...!.="i" - SURVEY 233 ...;;; SURVEY 271 C.C.S.D. & R.G.N.G. -61VAQUILLAS C.C.S.D. & R.G.N.G. R.R. co. VAOUILLAS § R.R. CO. RANCH C ABSTRACT 1117 ABSTRACT 1136 VAOUILLAS No. 246 ST (SHL) WEBB COUNTY, TEXAS RANCH -r;f-1 No. 120 "' RANCH c No. 246 ST -¢- (BHL) VAQUILLAS RANCH A-10 No. 81 ------- SURVEY 231 s 89"3fl'oo· w .... 4,4!5s.aa' ' C.C.S.D. & R.G.N.G. R.R. CO. I I ABSTRACT 1116 I' 1• SURVEY 234 ' C.J. BERGSTROM I• ABSTRACT 2146 ' t• I GRAPHIC SCALE 1 . = I ~ --·J-1 )or• ~~ (Ill n:u) ·~ l ltlell • lODOrt. I 1 LEGEND R""lslon Dela HOWLAND ENGINEERING AN) SURVEYING CO. Te?E~~Ha.F-4D!l7 TUPUIFkmRoogllhloo'INl>.ICI0'&4-00 0 -¢- = HORl20NTAL WEU. SURFACE l.OCATIOH • WW. • UNrr UllC ' 04-09-IJ 7515N._,,,_,,, ...-_r.c,7!041 P.D56.122M\1 - ' -- = fU{C[ Ula: -··- www.howlandoompanle&.oom - - - - - - - =TIES • StJR\l£Y LINE ~ BASIS OF BOOING: G.P.S. Tx. South Central Zona, NA0.-27. ms P\JiT llAY HOT SHC7ll' AU. tmlSSHCS OF P1'£1.JllES OR Cla.E.S. HOWl.NIO DICmEllll«; flEl.D DATE BOOK PAGE si DAAWN BY: LM. NIO ~G CO.. tlC. ASSl.M£S NO lt£SPCHSl!IUTY ro 1.0CATE Pf'Q.t£ OR c.oa£ CROSSN:lS. ~lln':s:.C~R!~~~~J1LIP~ OR "'' '" "" CHECKED BY: J0a No. J.S. 221:::11.36-13 CIOl'l'RICHT HOWVllO ~ N'J ~c co., li'IC. :to\JC SHEET: 2 OF 2 HOWLAND ENGINEERING AND SURVEYING CO. EXIDBIT "A-34" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 34 (VAQUILLAS RANCH A-8 WELLS No. 59, No. 66, & VAQUILLAS RANCH A No. 86) 606.84 ACRES A TRACT OF LAND CONTAINING 606.84 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1649, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1110, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 38°23'35" E, a distance of2,217.27 feet, from the Vaquillas Ranch A-8 No. 59 Well; THENCE, S 00°17'51" W, a distance ofS,027.60 FEET, to a point for the Southeast comer hereof; THENCE, S 89°24'12" W, a distance ofS,177.16 FEET, to a point for the Southwest corner hereof; THENCE, N 00°30'01" W, a distance of 5,115.58 FEET, to a point for the Northwest corner hereof; THENCE, S 89°37'46" E, a distance ofS,247.75 FEET, to the POINT OF BEGINNING, containing 606.84 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 SHEET I OF2 H:\HOWLAND\SURVEYING DEPARThfEN'J\JobsUO 13\22131.37-13\22131.37-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue , P.O. Box451128 (78045) ! Laredo, TX78041 P. 956.722.4411 F. 956.722.5414 TBPE Firm Registration No. F4097 ; TBPLS Firm Registration No. 100464-00 . EXHIBIT "A-34" CONOCOPHILLIPS COMPANY VAQUILI.AS RANCH LEASE 199129-001 N RETAINED lRACT 34 (VAQUILI.AS RANCH A-8 WELLS No. 591 No. 66. & VAQUILI.AS RANCH A No. 86} 606.84 ACRES WEBB COUNTY, TEXAS •• •• • • I• I• I• • SURVEY 1646 O.A. & F.A. SITZ • SURVEY 1648 • I• ABSTRACT 3301 I• C.M. SAWYER ABSTRACT 2441 I• ~ ~ ·,llBOOOllllG • • • 1- S 89"37'46• E 5:.Z.47.75' lI ' ' ------- I I ,.,-6/'' .,., SURVEY 1927 I ,_, ' '"' I T.M.R.R. CO. ABSTRACT 1808 ~· ~·I _,j>,..,/ ' I I ~'?/' I ~/ I 1/' ' I ~ -¢-------,,68'---- l CONOCOPHILUPS COMPANY ...;j: --------:a' VAQUILLA.S RANCH LEASE 199129-00 I VAOUIUAS 26,622.79 ACRES (CALLED) RANCH 0 0: ~~N ... RETAHD 608.84 AmE UNT A-8 No. 59 ' t> >- < "' !5~"'"" i z SURVEY 1649 C.C.S.D. & R.G.N.G. R.R. co. ABSTRACT 1110 VAOUJLLAS RANCH A-8 No. 66 -¢- ~ ..~ .~ "!., "'"!:! WEBB COUNTY. TEXAS "' ·rn ~go:i "' ~ ... >dl~o ~'" ;l o:::iif;) VAQUILLAS 1il" !:l -¢- RANCH A No. 86 -·----- 15 89'24'12· w ... 5,1n.1e• ------- • SURVEY 1906 • T.T. R.R. co. ABSTRACT 3103 I• • SURVEY 1653 I• C.C.S.D. & R.G.N.G. R.R. ABSTRACT 1099 co. • I GRAPHIC SCALE = bo------ 0 ~ = ·=I ( IN f'EU ) 1 Inch• IOOOn. ·=I LEGEND Ravlslon 0 ..1. HOWLAND ENGINEERING ANO SURVEYING CO. TBPEF\mRlglol'16onNO.f~ ~ftmR19ahblllo.ICOl6UD 0 -¢- = HORIZONTAL WELL • SURFACt LOCAnoH M~ = UN!T UH[ I 04-11 lJ • FEHCE a-IE 761~N.Flallo!IA- t...-.ll<..7ll041 P,111511.nz.4411 www.l'>owlandcompanle11.com - ' - - - - - - - "' TIE'S " " - " SURVEY UH! WARNING: BASIS or BEAAING: G.P.S. T~. so ... th Zone, N.A.D. 27. t.U. MS P\AT W.Y liOT SHOii' ALL CROSSt!GS Of" l'IPWhG OR aa..r:s.. llOWlJJIO ENC1111£ERN; HIO SUIM:'l'i'tG CO. lllC. .ISSl..::s NO JIC;PC»&Ell!IY ro l.OClTE P1PDJNt OR C08IL CllllSSHClS. FlEUl DATE 'NA PAGE :s DRAWN SY: NO QJ.&1 IS 1tER1'.BT MM)[ f!teN!IJHG OJRRDIT Oii M:f\£1.t. S!RlF>a'./latU;AAI, f!I: OllMRS>!P OR U3SOfL n11S OAAllllf(l WNX txQ..l.!SMl.Y Rlll CCINOCOPliUJPS COIWNIT. " "' CHECKED SY' JOB No. 221J1.J7-1J J.S. ~ ~ EHCN'.DiHD .lHO StJll\ll"l'N; i::o.. INC. 20130 SHEET: ' O' ' HOWL.A~~mJ ENGINEERING AND SURVEYING CO. EXHIBIT"A-35" FIELD NOTES FOR CONOCOPRUJ.IPS COMPANY VAQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 35 (VAQUILLAS RANCH A·ll WELLS No. 55, No. 58, No. 79 & No. 147) 640.00 ACRES A TRACT OF LAND CONTAlNlNG 640.00 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1651, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1112, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bearsN 46°43'15" W, a distance of799.66 feet, from the Vaquillas Ranch A·l I No. 79 Well; THENCE, EAST, a distance of 5,173.18 FEET, to a point for the Northeast corner hereof; THENCE, S 00°01'12" E, a distance ofS,422.60 FEET, to a point for the Southeast comer hereof; THENCE, WEST, a distance ofS,077.78 FEET, to a point for the Southwest comer hereof; THENCE, N 01°30'06" W, a distance of3,788.66 FEET, to a point for a deflection right; THENCE, N 00°04'11" E, a distance of 1,635.25 FEET, to the POINT OF BEGINNING and containing 640.00 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 .; SHEET I OF2 H:\HOWLAND\SURVEYING DEPARTMENl'Jobs\2013\22131.311-13\22131.38-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue ' P.O. 8oK451128 (78045) i Laredo, lX 78041 P. 956.722.4411 I F. 956.722.5414 TBPE Firm Registration No. F-4097 1 TBPLS Firm Registration No. 100464-00 EXHIBIT "A-35" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 35 (VAQUILLAS RANCH A-11 WEU.S No. 55, No. 58, No. 79, & No. 147) 640.00 ACRES WEBB COUNTY, T£Xlo.S SURVEY 1647 C.C.S.D. & i R.G.N.G. R.R. co. i I IT SURVEY 1646 ~-· ABSTRACT 1101 BLAS PENA ABSTRACT 2396 i N 46"43'15• W ;$· H _ c_799.66' - -,- - .. - - - .... -EAST .:-g:;'13.1's~ - .. - .... - .... - ;, ' j I ~ ',,, ~ - • -~---,.,..- "°"''""- VAQUILLAS l RANCH SURVEY 1664 . A-11 No. 79 W.H. TAYLOR ABSTRACT 2877 f-------~ i A V VAOU!UAS RANCH A-11 No. 55 CONOCOPHIUIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 26,622.79 ACRES (CALLED) RETAINED 540.00 ll;flE. UNTT -¢- VAQUIUAS RANCH A-11 No. 58 SURVEY 1651 C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 1112 WEBB COUNTY, TEXAS -¢- -- .. --- 0 u VAOUILLAS RANCH SURVEY 1650 A-1 l No. 147 C.M. SAWYER ABSTRACT 2444 WEST ,.. ~.Cf77.7B' .-p-• VAQUIUA~ SURVEY 1652 ------~ W.H. TAYLOR ABSTRACT 2876 ~ I RANCH 1 L No. 196 GRAPHIC """·-- .... ~UT 1 l t1 n:a) 1neh • 1ooon T LEGEND Revl~on Dote HOWLAND ENGINEERING AND SURVEYING CO. T'BPE F1tm Regll- tb. F-4097 TBPUI Am~ Na. 10G464-0) 0 -¢- -~,-- " ~~:~~'r~~N = WW. : ~EU/1~£ 1 2 3 ~-11 05-17-IJ 05-06-lJ lJ 7B\5N.Bo_A_ ~lX.7BO't'l'ING CO., II<. 2'1130 SHEET: 2 OF 2 HOWlt~~~ ENGINEERING AND SURVEYING CO. EXHIBIT "A-36" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY V AQUILLAS RANCH LEASE 199129-001 RETAINED TRACT 36 (VAQUILLAS RANCH A-4 WELLS No. 121, No. 151, No. 173 & No. 247) 367.60 ACRES A TRACT OF LAND CONTAlNING 367.60 ACRES, more or less, being out of the Vaquillas Ranch Lease 199129·001, 26,622.79 Acres (Called), situated in Survey 25, C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1042, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 72°18'31" W, a distance of 1,190.94 fee~ from the Vaquillas Ranch A-4 No. 173 Well; THENCE, N 89036'57" E, a distance of 5,471.02 FEET. to a point for the Northeast comer hereof; THENCE, S 01°11'25" E, a distance of2,927.97 FEET, to a point for the Southeast comer hereof; THENCE, S 89°08'54" W, a distance of374.16 FEET, to a point for a deflection right; THENCE, S 89°56'18" W, a distance of 5,133.27 FEET, to a point for the Southwest comer hereof; THENCE, N 00'28'50" W, a distance of2,901.83 FEET, to the POINT OF BEGINNING and containing 367 .60 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVh"YING DEPARTMENI\Jobs\2013122131.39-l 3U213 l .39-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue 1 P.O. Box451U8 (78045) : Laredo, lX 78041P.956.722.4411 F. 956.n2.S414 TBPE Arm Registration No. F-4097 I TBPLS Firm Registration No. 100464-00 EXHIBIT "A-36" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 36 (VAQUIUAS RANCH A-4 WEUS No. 121, No. 151, No. 173, & No. 247) 367.60 ACRES WEBB COUNTY, TEXAS : -¢- VAOUILL.AS 1 ;~ ~------= """:~-::;.,.,, ---:.:=··+ .1~ 0 u "' (")~:;jl ~r_;::! ~:z; t> A-4 No 167 _r'-r_ A- 4 No. 227 RANCH 1 Ct:~~ ' (BHL} ¥ -¢- A-4 No. 150-¢- ::>.:d~ ' I '.;!l1' I' VAOUlw.P "' .< RANCH JH A-4 No. 167 "cjoi (SHL) cj ' I• SURVEY 25 C.C.S.D. & R.G.N.G. R.R. ABSTRACT 1042 co . • N 72'18'31" W WEBB COUNTY. TEXAS __ r l,190.94' ~--~--_;;,~_--_-1-f~-~ol~~....::..;:::.::::""-.:;..;;;-"""..:::::;~~~~~~~--r N 88'38'S7• E - &.471.02' I - -... 1:)1 ___ .lJ.~:.-~~ VAQUIUAS •' >,.< RANCH A-4 No. 173 CONOCOPHILUPS COMPANY VAQUIU.AS RANCH A-12 No. 168--1"-<_ (BHL) ¥ 1:l 0 ::! • VAOUILLAS VAQUILLAS RANCH LEASE 199129-001 26,622.79 ACRES {CALLED) RETAINED 357.tlO N:iP£. UNIT !• w VAQU!U.AS VAOUILLAS RANCH 0 " ii RANCH -¢-A-4 No. 121 RANCH -¢-A-4 No. 151 VAOUJLLAS A-12 No. 168 (SHL) Iii RANCH !! A-4 No. 247 0 (SHL) z VAOUILLAS RANCH A-4 No. 247· ·YI" (BHL) .fl. 1>-~~~~~~~~~~~.;.....;_-"'-~~~~~~~~-9-r-o-~--- s 89'58'1s• w- 5,133.27" S 89"08'M• W SURVEY 987 A VAQUJLLAS 374.16' J. POITEVENT y RANCH I C No. 160 ABSTRACT 2061 SURVEY 232 C.J. BERGSTROM VAQUILLAS ABSTRACT 2148 RANCH -¢- C No. 84 ' ' v~~2~ j +=I - •• - •- i==i==i==~==2==i==i==i===i== C No. 246 ~x----X VAOUILLAS (BHL) ffi VAQUILLAS I RANCH C No 103 _,.i.,__ V ~ RANCH VAQUILl.AS C No 246 & RANCH No 246 STI I 1 I -¢- l ~~:~~~:'. C No. 246 ST1 (SHL) =~ ~-~-~-~-8~-=~:.~R~,~ .!.,i ~i -i ~i ~i ";, ~nAL~E~ ~ ~=~I - "" - -- - "" - - "~L~" - .. L£GEHO R.vlslon Doi• HOWLAND ENGINEERING AND SURVEYING CO. ll!l'E~~Ho.F-<097 T51'\.SAm~HD.I~. _ 0 -¢- " HOR!ZOM1"AL wtU. SURFACE LDC.\TIOH • WW. ....._ _ ,. UMIT LIKE I 10-18-IJ 74151<.8allldli_..• l.ando.1X..1ll041 P.9'6.mMl_l -~•- " F"ENCE LtlE www.howlandcompanles.com ------- = 11£5 - • • - " SURV[Y UHE ~ &.SIS OF BEAA!NG: G.P.S. Tic. South Zone. N.A0.-27. 'MS P\AT ""'T llOT SfOW H..L ~ OF PfflJKES OR Cla..ES. l!O'll'l.AHtl , ~ AHO SIJRVl:THP CO. ttC. AS9.lilES NCI FIESPCIHSlllllY Tll L.OC.'-TE PPElM OR ClaL Cl!OSSNGS. ~r!s~~~~~~rtt.OMil'.JlSHPOR FJELD CATE "' "'Q' "'' ' "" . DRAWN BY: CHECKED BY: SJ.I.I J.S. JOB No. 221.'.U.39 13 CCIP'r1'llCKl' tKlWlNE DDNEIRll-IG N(J SUIM."!1NG CO.. N:. 20\JC SHEET: 2 or 2 EXHIBITD PARTIAL RELEASE OF OIL AND GAS LEASE STATE OF TEXAS § § COUNTY OF WEBB § WHEREAS on January 9, 1988, Vaquillas Ranch Company, Ltd., Vaquillas Unproven Mineral Trust and Vaquillas Proven Mineral Trust acting therein through its general partners, J.O. Walker, Jr., Gene S. Walker, Evan B. Quiros and E. Walker Quiros, as Lessors, and Conoco Inc., as Lessee, entered into an Oil, Gas and Mineral Lease dated November 1, 1987, covering 6,740 acres of land, more or Jess, hereinafter referred to as Mthe Lease,· and; WHEREAS the Lease description was amended May 31, 1988, by deleting the acreage covered from 6,740 acres, more or less, to include a revised total of 4,800 acres, more or less, as evidenced by Memorandum of Oil and Gas Lease, dated June 16, 1988; recorded In Volume 1303, Page 886 of the Real Property Records of Webb County, Texas. WHEREAS the Lease has also been amended from time to time, as reflected in the Public Records of Webb County, Texas, and all references to the Lease herein shall be to the Lease as amended_ NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which Is hereby acknowledged, ConocoPhillips Company, does hereby RELEASE, RELINQUISH and SURRENDER unto the Lessor, all of its right, title and interest and estate in the Lease SAVE AND EXCEPT THOSE LANDS AS MORE PARTICULARLY DESCRIBED ON THE EXHIBIT "A," AND FURTHER DESCRIBED ON EXHIBITS A-1 THROUGH A-5 ATTACHED HERETO AND MADE A PART HEREOF. Provided, however, Lessee shall have and retain full rights of access and all easements of ingress and egress over and across those lands covered by the Lease, including the lands which are hereby released, for the production of oil and gas and operations in the acreage not hereby released, and Lessee shall not be required to remove or relocate any pipelines, utilities, roads, tank batteries, or other surface equipment or installations from any portion of the Lease or lands herein released for so long as same continues to be used for the exploration, development or operation of such portions of the Lease that continue in force and effect This instrument is binding upon and inures to the benefit of the parties hereto, their heirs, successors and assigns. ~ VOlmne: 3517 Page:44'1 -453 Executed this n day of f~\o .... 'Qc-1I • 2014. Doc# 1194187 Doc Type: PARTIAL RE.£ASE OFOIL & GAS LEASE Record Dllte: 2125/201.C 11:28:17 AM Record By: MIC Fees $71.00 Margie Ramirez Jbaml. Webb County Clerk LESSEE: ::~oc~ Michael P. Rose Attorney-In-Fact 25757HJ01 ACKNOWLEDGEMENT STATE OF TEXAS § § COUNTY OF HARRIS § ACKNOWLEDGED BEFORE ME, this rl "' day of F"... lon••"f • 2014, by Michael P. Rose, Attorney-in-Fact for ConocoPhillips Company, a Delawar; orporation, on behalf of said corporation. 257577-001 I OVERALL EXHIBIT "A" I : \_____ -,--y ! , I CONOCOPHILLIPS COMPANY VAQUILLAS RANCH RETAINED TRACTS 1-5 I . !' I CONTAINING A TOTAL OF 2,379.77 ACRES 1-- : i i I ' I ill ~~~I ' : I I ! A-t : I /;--------f: - " "i' 3211.Jll ! !' ' i __ J I I1-----+--- rl \ _____ _J r\--- ~}----- i~--I •;:-.:; A-> 1::::.-_ ------i_ - - - --~--- ~-----T-----~ Lr:}-\ L_ __ -r _____ l-- --1- ·! 'r--- : -----1 J_: : I' :------ I' ----1---- _____ -}-------1--------· :::T-- : ' : : . -1--------_; 1--T--T------f i i ------- _J---- -----~ ! ! ! ~--j_--+-----1 ~-------t------+--,--- i .~----- ~ \ l_ ___-:-=-----~--=4 : ------ : i i : : . L-----,-------r---~---- L_ __ j___ I ------- .:O.lo ---i_ i i i --._, - _____ j______ _j__ _____ +I ---- Acres 1 ' ' L__ L ___ LJ'f~ 598.911 kres : L ___ _ GRAPHIC SCALE 30XI 0 I~ .3000 ~ '°9--oj;;j-! I CONOCOPHILLIPS COMPANY HOWLAND ENGINEER/NO AND SURVEYING CO. TBPERmllrlglolr-.llo.~ TBl'l.5Fm~llo.1- VAQUILIAS RANCH RETAINED TRACTS BASE lilAP 71115N.-A....,. lAnldOo TX.7'°"1 P.llM.12ZM11 www.howtandcompanJas.com LEASE 257577-001 WEBB COUNJY, TEXAS WARNING: BASIS OF 8£.1.RING: C.P.S. l•. South Zone, NAO. 27. ms Pl.AT MAY HOT Sim MJ. CRCSSll'fCS Of Pf'(Ll'£S OR eo.au:s. IKJllll..NID ~c DRAWN BY: LAf./S.l.M. 10-11-IJ >HD ~ CO.. INC. J.SSULS HO ReiPCl'ISmilY TO LOCATE PF£l.K Cll CAtl.t CROSS1NCS. ~n':sH~~~~,&'~u.W"~ FEE~ OR "" "" CHECKED SY: J.S. JOB No. 22160-13 SHEET: 1 Of 1 HOWLAND ENGINEERING AND SURVEYING CO. EXHIBIT "A-1" F1ELDNOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 257577-001 RETAINED TRACT 1 (VAQUILLAS RANCH L-6 WELL No. 211) 328.36 ACRES A TRACT OF LAND CONTAINING 328.36 ACRES, more or less, being out of the Vaquillas Ranch Lease 257577--001, 6,740.00 Aaos (Called), situated in Survey 1956, H.B. Brock, Abstract 2560, Webb County, Texas, and being more particularly described as follows: BEGINNING at a found monument at fence comer, which bears N 70°15'08" W, a distance of 1,699.67 fee~ from the Vaquillas Ranch L-6 No. 211 Well; THENCE, N 89°20'09" E, along an existing fence line, a distance of3,112.47 FEET, to a point for the Northeast comer hereof; THENCE, S 00°38'14" E, a distance of 4,600.71 FEET, to a point under an existing fence, for the Southeast comer hereof; THENCE, S 89030'49" W, along an existing fence line, a distance of 1,416.19 FEET, to a point for a deflection right; THENCE, S 89035'52" W, continuing along said existing fence 1ine, a distance of 1,696.63 FEET, to a found 60 D nail at fence comer, for the Southwest corner hereof; THENCE, N 00°37'59" W, continuing along an existing fence line, a distance of 4,588.56 FEET, to the POINT OF BEGINNING, containing 328.36 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 ,: ·' SHEET! OF2 H:\HOWLAND\SURVEYING DEPARTMENNobs\2013\22160.1-13122160.1· 13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue ; P.O. Box 45112B {78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.n2.5414 TBPE Firm Registration No. F-4097 : TBPLS Arm Registration No. 100464-00 EXHIBIT "A-1" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LfASE 257577-001 RETAINED TRACT 1 (VAQUILLAS RANCH L-6 WELL No. 211) 328.36 ACRES WEBB COUNTY, TEXAS • ' 1 I SURVEY 2096 ' ' D.C. FANNING I' J ABSTRACT 2228 - ' (~ - I ---------- N 89"20'09• E ,.. 3112.47' Found Monl.lll'lllllt --___,,.,,, ,-~~- t 1m 0 Fence Comer '6.99.a) ..Jt I -- '¢-VAQUILLAS -------T.5~i3.------::: RANCH SURVEY 1955 G.C. & S.F. R.R. CO. L-6 No. 211 ABSTRACT 1326 I CONOCOPHILLIPS COMPANY ,_ J~ ~ VAQUILLAS RANCH LEASE 257577-001 ~ 6,740.00 ACRES (CALLED) !§ RETNNED 328.38 ACRE UNfT ~ l l ...... SURVEY 1956 s];;'" ~ VAOUILLAS RANCH A-3 No. 200 (BHL) D.C. FANNING I! "' -lb ABSTRACT 2591 z SURVEY 1956 VAOUlUAS RANCH H.E. BROCK A-3 No. 200 (SHL) ABSTRACT 2560 WEBB COUNTY. TEXAS r~round - Ko~ 0 ooFence o Comllr ' ' ' ' x- s 89"~·~2· 1,696.63' w - )ti >< 1 s 89"30""'9. 1,416.19' w SURVEY 2057 I: C.T. & M.C. R.R. CO. ABSTRACT 965 II 1: SURVEY 2056 "lI, C.T. & M.C. R.R. CO. ABSTRACT 2680 VAQUILLAS RANCH A-5 No. 205 (SHL)Q VAQUILlAS RANCH -¢- A-5 No. 205 (BHL) VA~~~-¢. A-5 No. 166 liI: II ~ • = ~--"'wiJ-' GRAPHIC SCALE ~ (IN fE£r) ·=. -I 0 VAQUlUAS .•RANCH A-5 No. 230 (SHL) " 1 l'><.h • IDOOF\. LEGEND Rtvblcn Dell HOWLAND ENGINEERING AND SURVEYING CO. TBPE Fm\ Rogllt_, ~ f..Q11 Tlll'l.S llm ~HO. ICICM64-00 _, 0 -¢- =WW. ., HORIZONTAL WELL "' UNIT UHE SURFACE LOCATION ' 04-10-ll ,. FOIC£ LIKE 761,,t.lllllldA--.. ~ 1)(.1l!G41 P.li5a.122Ml1 ------- =TIES www.howl11ndcomp11nles.com WARNING: BASIS OF B£AAING: GJ>.S. b. So111h Zone, NAO. 27. -- " SURVEY UNE rntS PlAl' W.T NOi' 9llW N.1. CROSStlc:s OF PIP£l.Jlml OR CAllUS. 110W1.N10 ~ .-HO $l.IFN£TtlG CO., tfe. ASSlAIES HO RESPOtGaUTT TO l,DCU'[ Pffl.JI£ OR CAll..E ~ FIELD DATE ""'• t'AGE s DRAWlll BY: A.LC. NO CUit.i 15 KEREBT WOE: ~ CU!!1oa OR H;T\W. SURI"~ f'EE ~ Oii USS0R. ltn QRla'J'tG WOE: aa.\ISVELV FOR CCitfOCOPKUW'S COllPAlfT. CllPYlllQIT HC7M..IHD DONEERttC Nm ~CO., tc. 2CllJC " "" "'' CHECKED BY: J.S. JOB No. 22160.1-13 SHEET: 2 OF 2 Ho~~ .~~\ ~"ii,l~I[~® ,--~~~~ ,1J~~f? ENGINEERING AND SURVEYING CO. EXHIBIT"A-2" FIELDN01ES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 257577-001 RETAINED TRACT 2 (VAQUILLAS RANCH L4 WELLS No. 95 & No. 105) 172.43 ACRES A TRACT OF LAND CONTAINING 172.43 ACRES, more or less, being out of the Vaquillas Ranch Lease 257577-001, 6,740.00 Acres (Called), situated in SE \4 of Survey 2060, C.C. Marshall, Abstract 3329, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears N 50°34'35" W, a distance of 490.36 feet. from the Vaquillas Ranch L-4 No. 95 Well; THENCE, N 89°18'10" E. a distance of 1,350.57 FEET, to a point for a deflection right; THENCE, S 89°39'06" E, a distance of 1,338.93 FEET, to a point on an existing fence line, for the Northeast comer hereof; THENCE, S 00°18'08" E, along an existing fence line, a distance of2,76S.12 FEET, to a found fence comer post, for the Southeast comer hereof; THENCE, S 89°15'36" W, along said existing fence line, a distance ofl,691.33 FEET, to a point for the Southwest comer hereof; THENCE, N 00°48'19" W, a distance of 1,517.91 FEET, to a point for a deflection right; THENCE, N 00"22'53" E, a distance ofl,273.82 FEET, to the POINT OF BEGINNING, containing 172.43 acres of land, more or less. Basis of Bearing: G.P.S., TX. South Zone, NAD-27 SHEET I OF2 H:\HOWLAND\SURVEYrNG DEPARTMEITT\Job$\20\ 3\22 I 60.2- l3\22160.2- I 3.doc www.howlandcompanies.com 7615 N. Bartlett Avenue P.O. Box 451128 (78045) ! Laredo, 1X 78041 P. 956.722.4411 F. 956.722.5414 TBPE Finn Registration No. F-4097 • TBPLS Firm Registration No. 100464-00 EXHIBIT "A-2" CONOCOPHILLIPS COMPANY VAQUIUAS RANCH LEASE 257577-001 RETAINED TRACT 2 (VAQUIUAS RANCH· L-4 WEU.S No. 95 & No. 105) 172.43 ACRES WEBS COUNTY, TEXAS I A VAOUlllAS ¥ RANCH A-5 No. 126 . I SURVEY 2058 C.T. & M.C. R.R. CO . A-2880 . I L I It 11 --- .. - M .. -·.-¢- ~:=L~~ ·--··-. -- .---.,---- -----1f-------------f·- RANCH A-5 No. 118 VAQUILLAS A-5 No. 101 I : 0 l ~1·c..{j: i SURVEY 2080 ~ o~~ ~ ~~: /f.~1i C.T. & M.C. R.R. CO. : ABSTRACT 3330 VAQUILLAS RANCH ,------1 I I .,«01 ~;:gE-< Ii A-5 No. 40 0 I 1 SURVEY 2060 R.D. GUINN I I 1 => Od Cll rn .___: ~ ~ j r~~ I ABSTRACT 3331 ti ~~: N 89'18'10• E - - - - - - - - - - ~3°4·3s~·'°w~_.:-,....,.,:r,1:,,"""~".o~r--.1..-....:1.i:•::o:~:::: •3··---1 i S 89'39'oe• E SURVEY 1884 M.E. WIDEMAN 49Cl.36' ~;;;i VAQUILLAS RANCH ABSTRACT 2501 ti.I tJBi.C:} L-4 No. 95 i:l ii . (SHL) SURVEY 2060 R.D. GUINN "§_. ,. ; ~ -¢-vAOU!UAS RANCH L-4 No. 95 ABSTRACT 3332 (BHL) z ,-~ ~ 1 1 tOZM ozM --: • • CONOCOPHILUPS COMPANY 6,740.00 ACRES (CALLED) R£TAINED 172."3 ACRE 111 VAQUILLAS RANCH LEASE 257577-001 ~ co UN~ 8 § 00 se-o at"'" :-~ SE 1/4 OF "' ~ c; U !> · 01 §:;j- VAQUIL~ RANCH SURVEY 2080 C. C. MARSHA!L o:: A E-< z L- 4 No. 1OS ABSTRACT 3329 =>~ r/l rn !:J WEBB COUNTY, TEXAS LI---·-·-·-·-· _L --··--''-----:s'""'B9"""1o"JO"'•..-·w:::-'.~~..~.:<,;;1-;.JJ~-~,_-r- ----------- found Fen~ I •' Comer Post NORTH 1/2 SURVEY 1836 P.K. CONNOWAY ABSTRACT 2187 I ' ' I SURVEY 260 MARY E. WIDEMAN ' ABSTRACT 2504 ' GRAPHIC SC~ - - - - - - - - - -S:: ~-- - ---i k-.JJ-; i ~~J:~ :I 1 T < IN nu I ABSTRACT 2137 I lll<:h • 1000F\. Ravlalon LEGEND "'" HOWL.ANrE ENGINEERING ANO SURVEYING CO. 0 -¢- ,. HORIZOKTAI.. WELL stlRl'ACt LOC4l10H wru. ,' 04-11-13 " 27-1J TllPEflm~No.l409l' TllPLSflm~No..1(1(14114-00 7&\0N.->-- ~TX.111C4• P.$$8.722M11 www.howlandcompanles.com -·-·- .. ------ UNIT UHE rENC£ UH[ n"' 5U)IVEY I.JN[ WARNING: BASIS OF BEARING: G.P.S. T~. South Zone, NAD.-27. ·~' 'lllS PW' l&Al' NOT SllOW .0.U. CROSSflCS Of PPDJH£5 OR CAIUS.. lfllWl.AIE £NCltlECJl!NG flM DATE l'AGE s DRAWN BY: A.LC. N't/) $UR't'E'l'flC co. tlC. ...ssu.1ES 110 ~BUT'I' TO \.DCAn: PPD.N: OR CAa( ~ HO a>!lol IS Hl1!EllT WDE RtCAIUllH!l Clf!R£M1' OR ACf\IAL SURfJa:/lllHO!Al fU °""'ER!MP OR 1ISSOR. n11S l;IRl.lnoc:!lit; • :::: SURVEY 1664 W.H. TAYLOR I R.G.N.G. R.R. CO. ABSTRACT 1124 ~~ci~ ABSTRACT 2877 ' ~~ ·e-. ' ' ::=> u rt.I :z; rJJ C?~ I' I' "' ' ' POm~ WUUNG N 89"59'M• E ,.. S,380.33' , -¢- t .' &~ ...... ! VAOUlllAS ~ ~-t.~q\.,t ~ RANCH .... ____ f,,.~ .. A-11 No. 147 ' , I CONOCOPHlLLIPS COMPANY -¢-'.:.--"~---· VAQUllt.AS RANCH LEASE 257577-001 VAQUILl.AS 6, 740.00 ACRES (CALLED) RETAINED MO.OD ACRE UNIT RANCH L No. 137 I ~ ~ ~ !i "l } VAOUIUAS ..~ .. RANCH L No. 196 SURVEY 1663 .. ~------ $!;; I C.C.S.D. & R.G.N.G. R.R. co. "' "'"',._ ABSTRACT 1123 ~sre !! WEBB COUNTY, TEXAS -~E-t z ., ~e-" VAOUILLAS-¢- g;:'i~ RANCH L No. 129 "'"'~ Q- VAOUlLLAS RANCH l No. 171 VAQUILLAS RANCH l No. 135 --- -- - - --- --- - - -- - - ---$-- - - - ~ OCTJ1'M• W ~.21' WEST ... ~.314.7!5' ' I' SURVEY 1661 C.C.S.D. & R.G.N.G. R.R. co. ' ABSTRACT 1122 --~ VAQUILLAS RANCH L No. 190 SURVEY 1668 -¢- VAQUIUAS Y. VERGARA RANCH ABSTRACT 2490 ' l No. 136 ' -¢- GRAPIDC SCALE =i--......_...... ' = ~ ·=. = I VAOULLLAS RANCH {"' FEtl J 1 net. - IDOOrt. -¢- L No. 134 -- LEGEND Rlv!ston Dall HOWL.AM~ ENGINEERING ANO SURVEYING CO. 0 -¢- "' HORIZONTAL WEtl SURF"Att 1.0CATIOM ' ' 05-20-13 08-05-lJ TnPf.AlmllDO ,i I ~----- • (INFaT) I I .. I lnoh - lDDOFl. LEGEND R.vl1lon ~ HOWLANflV ENGINEERING AND SURVEYING CO. _,_ 0 -¢- - HORIZONTAL WELL SURrAC£ LOCATIOH wm UffJT UMC ' ' 04-11-13 05-12 13 06-05-13 TBPE fmi~1'0..l'-'W7 TBl'lS Fmi~ND. 10>4&MXI 7'15N._A_ u..!o, lX.7!041 P.1156.t22M11 "'" ""' ------- n"' ' www.howlandcompanles.com ~ BASIS OF BEAAlm>: G.P.S. Tx. South Zone. N.A.0.-27. THIS PW" MAT MCFI' Slt:IW Ml aiosstlGS OF" Pl'ELN!i OR CAIUS. ttC7111»10 EHQHEERIHG ---- FlELO OATE SURVEY UHE PAGE~ OAAWN B'f; ' A.LC./S.1.M. 10-22-13 Nil SIJ!f\IETllG CO.. tlC. ASSlAIES HO R£SPOICSl!lllJI lO LOCAT"t l'PQJNE OR C03.t CROSSllC::~. ~~~~~~~~g~-DIAL FEE O'fMRSIF OR "" "" CHECKED B'f: JOB No. J.S. 22160.'4 13 COPmQfT llOWl.IHO ~ Nil su:M:nC co., rte.. 201JC SHEET: 2 OF 2 EXHIBIT "A-5" FIELD NOTES FOR CONOCOPHILLIPSCOMPANY VAQUILLAS RANCH LEASE 257577-001 RETAINED TRACT 5 (VAQUILLAS RANCH L WELLS No. 138, No. 139, No. 133 & No. 188 ST) 640.00 ACRES A TRACT OF LAND CONTAINING 640.00 ACRES. more or less, being out of the Vaquillas Ranch Lease 257577-001, 6,740.00 Acres (Called), situated in the West Y2 of Survey 1662, R.E. Farr, Abstract 2230; and Survey 1652, W .H. Taylor, Abstract 2876, Webb County, Texas, and being more particularly described as follows: BEGINNING at a point which bears S 41°48'58" E, a distance of782.90 feet, from the Vaquillas Ranch L No. 138 Well; THENCE, N 80°01'00" W, a distance of 1,834. 72 FEET, to a point for the Southwest comer hereof; THENCE, NORTH, a distance of 1,133.33 FEET, to a point for an exterior comer hereof; THENCE, EAST, a distance of97.l2 FEET, to a point for an interior comer hereof; THENCE, NORTH, a distance of 5,125.38 FEET, to a point for the Northwest comer hereof; THENCE, S 89°33'23" E, a distance of 5,644.97 FEET, to a point for the Northeast comer hereof; THENCE, S 00°07'00" E, a distance of 4,247.26 FEET, to a point for an exterior comer hereof; THENCE, WEST, a distance of3,943.78 FEET, to a point for an interior comer hereof; THENCE, S 00°00'05" E, a distance of2,285.82 FEET, to the POINT OF BEGINNING, containing 640.00 acres of land, more or less. Basis ofBearing: G.P.S., TX. South Zone, NAD-27 SHEET 1 OF2 H:\HOWLAND\SURVEYmGDEPAR'IMEITTUobs\2013\22160.5-13\22160.5-13.doc www.howlandcompanies.com 7615 N. Bartlett Avenue : P.O. Box451128 (78045) : Laredo, lX 78041P.956.n2.4411 F. 956.722.5414 TBPE Firm Registration No. F-4097 ; TBPLS Firm Registration No. 100464-00 EXHIBIT "A-5" CONOCOPHILLIPS COMPANY VAQUILLAS RANCH LEASE 257577-001 RETAINED TRACT 5 (VAQUIUAS RANCH L WELLS No. 133, No. 138, No. 139 & No. 188 ST) 640.DD ACRES WEBB COUNTY, lEXAS SURVEY 1650 -- --- ---- -- ------ -------- C.C.S.D. & R.G.N.G. R.R. CO. ABSTRACT 2444 SURVEY 1652 SURVEY 1653 W.H. TAYLOR C.C.S.D. & ABSTRACT 2878 R.G.N.G. R.R. CO. CONOCOPHILLIPS COMPANY ABSTRACT 1099 VAOUILtAS RANCH LEASE 257577-001 6,740.00 ACRES (CALLED) i...• RETAINED 840.00 ACRE UNrr VAQUJLlAS RANCH -¢-L No. 1J3 -¢- VAOUILLAS RANCH k VAQUILlAS l No. 188 ST ~ RANCH L No. 1J9 (BHL) -¢- O WEST ~ SURVEY 1862 R.E. FARR 0 ABSTRACT 2230 VAQUIUAS RANCH WEBB COUNTY, TEXAS L No. 188 ST (SHL) WEST ,.. 3,943.78' .,.,. 97.22' ....... ---- .. -""':""' ...• ~ SURVEY 1662 A.F. CARROLL ? VAOUlllAS RANCH :s8 ABSTRACT 3094 ~ L No. 138 -¢(-512_:_ ~ o .,, cns•1·•<>'~"·E z - i1 ,.,,,,...,-- - -- SURVEY 1654 /'N BO"o 1• ·; '\, 782.90' oo• W ,.. 1.834:. ------- --- ---, ------ C.C.S.D. & R.G.N.G. R.R. ABSTRACT 3104 co. I I 72 ,' ----- ... I 9 I •• :llXI J-w•w'\OJ-' GRAPHIC SCALE 9:z-rosco ,j I SURVEY 373 S. & M. ABSTRACT 1718 I , b:h - 10000. • I l£GE:NO Revbh>n Dall 0 "' HORIZO~Al.. WELL SURFACE LOCATION 1 04-12 13 -¢- ~ wru. 2 10-18-IJ 111-~,-- : =EU~E - - - - - - - • TIES --·- • SURVl:I' LIKE WARNING: BASIS OF BEARlNG: G.P.$. Tx. Soirth zon.,, NAO. 27. 1HS Pl.111 WAY HOT S>torr H..L l;ltOSSltGS OF" PIPO.llC Oil ~ HOWW«l ~ AHO SIJIM:nl(l CO., INC.. ASSl.UES NO ~ErulY TO l.DCIJE P5'EtlfE OR ClaE CROSSN(l5. EID ,,, °"" '""" ,,, PAGE s OAAWN BY: A.L.C./5.1.M. ~TttlSIS~~~~d:cx:a~~~ Ftt OWKJ1SHP OR '" CHECKED SY: JOB No. JS. 22160.5-1.} SHEET: 2 or z TAB2 ,, ..;:. RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL OIL AND GAS DOCKET IN THE VAQUILLAS RANCH (LOBO NO. XX-XXXXXXX CONS.) FIELD, WEBB CO~NTY, TEXAS FINAL ORDER AMENDING FIELD RULES FOR THE VAQUILLAS RANCH (LOBO CONS.) FIELD WEBB COUNTY, TEXAS The Commission finds that after statutory notice In the above-numbered docket heard on September 23, 2010, the presiding examiner has made 01'.>dh:il I brrn i 'JdJ'to ffl~>~~ r,;1:~ EXHIBIT A-1 _________ http://webapps.rrc.state.tx.us/DP/fieldSelectAction.do 1/1 RAILROAD COMMISSION OF TEXAS STATE OF TEXAS ·. · · ··· :. COUNTYOFTRAVIS '. ·•· I hereby certify that the information on the reverse side hereof is a true and correct copy of a document on D513 7 i; nuG 25 1t~ file with the Railroad Commission of Texas, and I further certify that ,'t:\ I ,: l ' i :::;I;·, I_·\:. ., 1:" I am the legal Custodian of the records, files and seal of the Rail- ''.f (~· road Commission of Texas. Ii· ~ ;1t"' •-~.l--~-· 1 o& o-~j---.-··-- I . v. IY : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... <> TITLE 16 ECONOMIC REGULATION PART 1 RAILROAD COMMISSION OF TEXAS CHAPTER 3 OIL AND GAS DIVISION RULE §3.38 Well Densities (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Commission designee--Director of the Oil and Gas Division or any Commission employee designated in writing by the director or the Commission. (2) Drilling unit--The acreage assigned to a well for drilling purposes. (3) Proration unit--The acreage assigned to a well for the purpose of assigning allowables and allocating allowable production to the well. (4) Substandard acreage--Less acreage than the smallest amount established for standard or optional drilling units. (5) Surplus acreage--Substandard acreage within a lease, pooled unit, or unitized tract that remains unassigned after the assignment of acreage to each applied for, permitted, or completed well in a field, in an amount equaling or exceeding the amount established for standard or optional drilling units. Surplus acreage is distinguished from the term "tolerance acreage,"in that tolerance acreage is defined in context with proration regulation, while surplus acreage is defined by this rule only in context with well density regulation. (6) Tolerance acreage--Acreage within a lease, pooled unit, or unitized tract that may be assigned to a well for proration purposes pursuant to special field rules in addition to the amount established for a prescribed or optional proration unit. (b) Density requirements. (1) General prohibition. No well shall be drilled on substandard acreage except as hereinafter provided. (2) Standard units. (A) The standard drilling unit for all oil, gas, and geothermal resource fields wherein only spacing rules, either special, country regular, or statewide, are applicable is hereby prescribed to be the following. Attached Graphic (B) The spacing rules listed in subparagraph (A) of this paragraph are not exclusive. If any spacing rule not listed in subparagraph (A) of this subsection is brought to the attention of the commission, it will be given an appropriate acreage assignment. EXHIBIT A-2 _________ (c) Development to final density. An application to drill a well for oil, gas, or geothermal resource on a drilling unit composed of surplus acreage, commonly referred to as the "tolerance well," may be granted as 1 of 6 9/8/2014 3:17 PM : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... regular when the operator seeking such permit certifies to the commission in a prescribed form the necessary data to show that such permit is needed to develop a lease, pooled unit, or unitized tract to final density, and only in the following circumstances: (1) when the amount of surplus acreage equals or exceeds the maximum amount provided for tolerance acreage by special or county regular rules for the field, provided that this paragraph does not apply for a lease, pooled unit, or unitized tract that is completely developed with optional units and the special or county regular rules for the field do not have a tolerance provisions expressly made applicable to optional proration units; (2) if the special or county regular rules for the field do not have a tolerance provision expressly made applicable to optional proration units, when the amount of surplus acreage equals or exceeds one-half of the smallest amount established for an optional drilling unit; or (3) if the applicable rules for the field do not have a tolerance provision for the standard drilling or proration unit, when the amount of surplus acreage equals or exceeds one-half the amount prescribed for the standard unit. (d) Applications involving the voluntary subdivision rule. (1) Density exception not required. An exception to the minimum density provision is not required for the first well in a field on a lease, pooled unit, or unitized tract composed of substandard acreage, when the leases, or the drillsite tract of a pooled unit or unitized tract: (A) took its present size and shape prior to the date of attachment of the voluntary subdivision rule (§3.37(g) of this title (relating to Statewide Spacing Rule)); or (B) took its present size and shape after the date of attachment of the voluntary subdivision rule (§3.37(g) of this title (relating to Statewide Spacing Rule)) and was not composed of substandard acreage in the field according to the density rules in effect at the time it took its present size and shape. (2) Density exception required. An exception to the density provision is required, and may be granted only to prevent waste, for a well on a lease, pooled unit, or unitized tract that is composed of substandard acreage and that: (A) took its present size and shape after the date of attachment of the voluntary subdivision rule (§3.37(g) of this title (relating to the Statewide Spacing Rule)); and (B) was composed of substandard acreage in the field according to the density rules in effect at the time it took its present size and shape. (3) Unit dissolution. (A) If two or more separate tracts are joined to form a unit for oil or gas development, the unit is accepted by the Commission, and the unit has produced hydrocarbons in the preceding twenty (20) years, the unit may not thereafter be dissolved into the separate tracts with the rules of the commission applicable to each separate tract if the dissolution results in any tract composed of substandard acreage for the field from which the unit produced, unless the Commission approves such dissolution. (B) The Commission shall grant approval only after application, notice, and an opportunity for hearing. 2 of 6 9/8/2014 3:17 PM : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... The applicant seeking the unit dissolution shall provide a list of the names and addresses of all current lessees and unleased mineral interest owners of each tract within the joined or unitized tract at the time the application is filed. The Commission shall give notice of the application to all current lessees and unleased mineral interest owners of each tract within the joined or unitized tract. Additionally, if one or more wells on the unitized tract has produced from the field within the 12-month period prior to the application, the applicant shall include on the list all affected persons described in subsection (h)(1)(A) of this section, and the Commission shall give notice of the application to these affected persons. (C) A Commission designee may grant administrative approval if the Commission designee determines that granting the application will not result in the circumvention of the density restrictions of this section or other Commission rules, and if either: (i) written waivers are filed by all affected persons; or (ii) no protest is filed within the time set forth in the notice of application. (e) Application involving unitized areas with entity for density orders. An exception to the minimum density provision is not required for a well in a unitized area for which the commission has granted an entity for density order, if the sum of all applied for, permitted, or completed producing wells in the field within the unitized area, multiplied by the applicable density provision, does not exceed the total number of acres in the unitized area. The operator must indicate the docket number of the entity for density order on the application form. (f) Exceptions to density provisions authorized. The Commission, or Commission designee, in order to prevent waste or, except as provided in subsection (d)(2) of this section, to prevent the confiscation of property, may grant exceptions to the density provisions set forth in this section. Such an exception may be granted only after notice and an opportunity for hearing. (g) Filing requirements. (1) Application. An application for permit to drill shall include the fees required in §3.78 of this title (relating to Fees and Financial Security Requirements) and shall be certified by a person acquainted with the facts, stating that all information in the application is true and complete to the best of that person's knowledge. (2) Plat. When filing an application for an exception to the density requirements of this section, in addition to the plat requirements in §3.5 of this title (relating to Application to Drill, Deepen, Reenter, or Plug Back) (Statewide Rule 5), the applicant shall attach to each copy of the application a plat that: (A) depicts the lease, pooled unit, or unitized tract, showing thereon the acreage assigned to the drilling unit for the proposed well and the acreage assigned to all current applied for, permitted, or completed oil, gas, or oil and gas wells in the same field or reservoir which are located within the lease, pooled unit, or unitized tract; (B) on large leases, pooled units, or unitized tracts, if the established density is not exceeded as shown on the face of the application, outlines the acreage assigned to the well for which the permit is sought and the immediately adjacent wells on the lease, pooled unit, or unitized tract; (C) on leases, pooled units, or unitized tracts from which production is secured from more than one field, outlines the acreage assigned to the wells in each field that is the subject of the current application; 3 of 6 9/8/2014 3:17 PM : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... (D) corresponds to the listing required under subsection (g)(1)(A) of this section. (E) is certified by a person acquainted with the facts pertinent to the application that the plat is accurately drawn to scale and correctly reflects all pertinent and required data. (3) Substandard acreage. An application for a permit to drill on a lease, pooled unit, or unitized tract composed of substandard acreage must include a certification in a prescribed form indicating the date the lease, or the drillsite tract of a pooled unit or unitized tract, took its present size and shape. (4) Surplus acreage. An application for permit to drill on surplus acreage pursuant to subsection (c) of this section must include a certification in a prescribed form indicating the date the lease, pooled unit, or unitized tract took its present size and shape. (5) Certifications. Certifications required under paragraphs (3) and (4) of this subsection shall be filed on Form W-1A, Substandard Acreage Certification. (A) The operator shall file the Form W-1A with the drilling permit application and shall indicate the purpose of filing. The operator shall accurately complete all information required on the form in accordance with instructions on the form. (B) The operator shall list the field or fields for which the substandard acreage certification applies in the designated area on the form. If there are more than three fields for which the certification applies, the operator shall attach additional Forms W-1A and shall number the additional pages in sequence. (C) The operator shall file the original Form W-1A with the Commission's Austin office and a copy with the appropriate district office, unless the operator files electronically through the Commission's Electronic Compliance and Approval Process (ECAP) system. (D) The operator or the operator's agent shall certify the information provided on the Form W-1A is true, complete, and correct by signing and dating the form, and listing the requested identification and contact information. (E) Failure to timely file the required information on the appropriate form may result in the dismissal of the application. (h) Procedure for obtaining exceptions to the density provisions. (1) Filing requirements. If a permit to drill requires an exception to the applicable density provision, the operator must file, in addition to the items required by subsection (g) of this section: (A) a list of the names and addresses of all affected persons. For the purpose of giving notice of application, the Commission presumes that affected persons include the operators and unleased mineral interest owners of all adjacent offset tracts, and the operators and unleased mineral interest owners of all tracts nearer to the proposed well than the prescribed minimum lease-line spacing distance. The Commission designee may determine that such a person is not affected only upon written request and a showing by the applicant that: (i) competent, convincing geological or engineering data indicate that drainage of hydrocarbons from the particular tracts subject to the request will not occur due to production from the proposed well; and 4 of 6 9/8/2014 3:17 PM : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... (ii) notice to the particular operators and unleased mineral interest owners would be unduly burdensome or expensive; (B) engineering and/or geological data, including a written explanation of each exhibit, showing that the drilling of a well on substandard acreage is necessary to prevent waste or to prevent the confiscation of property; (C) additional data requested by the Commission designee. (2) Notice of application. Upon receipt of a complete application, the Commission will give notice of the application by mail to all affected persons for whom signed waivers have not been submitted. (3) Approval without hearing. If the Commission designee determines, based on the data submitted, that a permit requiring an exception to the applicable density provision is justified according to subsection (f) of this section, then the Commission designee may issue the exception permit administratively if: (A) signed waivers from all affected persons were submitted with the application; or (B) notice of application was given in accordance with paragraph (2) of this subsection and no protest was filed within 21 days of the notice; or (C) no person appeared to protest the application at a hearing scheduled pursuant to paragraph (4)(A) of this subsection. (4) Hearing on the application. (A) If a written protest is filed within 21 days after the notice of application is given in accordance with paragraph (2) of this subsection, the application will be set for hearing. (B) If the application is not protested and the Commission designee determines that a permit requiring an exception to the applicable density provision is not justified according to subsection (f) of this section, the operator may request a hearing to consider the application. (i) Duration. A permit is issued as an exception to the applicable density provision shall expire two years from the effective date of the permit; unless drilling operations are commenced in good faith within the two year period. Source Note: The provisions of this §3.38 adopted to be effective November 1, 1989, 14 TexReg 5255; amended to be effective April 21, 1997, 22 TexReg 3404; amended to be effective July 10, 2000, 25 TexReg 6487; amended to be effective June 11, 2001, 26 TexReg 4088; amended to be effective February 13, 2002, 27 TexReg 906; amended to be effective September 1, 2004, 29 TexReg 8271 Next Page Previous Page 5 of 6 9/8/2014 3:17 PM : Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d... 6 of 6 9/8/2014 3:17 PM Figure: 16 TAC §3.38(b)(2)(A) http://info.sos.state.tx.us/fids/16_0003_0038-1.html Figure: 16 TAC §3.38(b)(2)(A) Acreage Requirement Spacing Rule (1) 150 - 300 2 (2) 200 - 400 4 (3) 330 - 660 10 (4) 330 - 933 20 (5) 467 - 933 20 (6) 467 - 1200 40 (7) 660 - 1320 40 1 of 1 9/8/2014 3:18 PM CAUSE NO. 2014CVQ000438 D4 VAQUILLAS UNPROVEN MINERALS, § IN THE DISTRICT COURT OF LTD, § § Plaintiff, § § v. § WEBB COUNTY, TEXAS § CONOCOPHILLIPS COMPANY, § § Defendant. § 406™ JUDICIAL DISTRICT DEFENDANT CONOCOPHILLIPS COMPANY'S RESPONSE TO PLAINTIFF VAQUILLAS UNPROVEN MINERALS, LTD. 'S FIRST SET OF INTERROGATORIES Defendant ConocoPhillips Company, acting pursuant to Tex. R. Civ. P. 197, responds to Plaintiffs First Set of Interrogatories as shown on the attached pages. By Rule 11 agreement between counsel for Plaintiff and Defendant, ConocoPhillips' time for responding to these interrogatories was extended to and including July 7, 2014. ConocoPhillips objects to the "Definitions" set forth on pages 4-5 of Plaintiffs First Set of Interrogatories as follows: 1. ConocoPhillips objects to the twenty-one "Definitions" in their entirety for the reason that they consist mainly of boilerplate "definitions," not tailored to Plaintiffs First Set of Interrogatories. For example, they include instructions "to produce" documents, which is not the proper function of interrogatories. As another example, the definitions include many words never used in Plaintiffs interrogatories. ConocoPhillips declines to attempt to comply with Plaintiffs boilerplate definitions, but instead will comply with the requirements of Tex. R. Civ. P. 195. 2. ConocoPhillips objects to the definitions of "documents" and "records." This "definition" was obviously not written to be used with interrogatories because it talks about EXHIBIT A-3 _________ which it relies established units of different sizes from 40 acres for oil wells and 640 acres for gas wells, then that is wrong, and ConocoPhillips denies it. 14. Identify by the Well name(s) used in the Partial Releases and the corresponding API Number each Well you contend entitles you to any Retained Acreage pursuant to the Vaquillas Leases. ANSWER: Objection: ConocoPhillips objects to this interrogatory because it is vague and ambiguous. Subject to the foregoing objection, the Partial Releases described in Plaintiffs Definition 19 provide well names and numbers, and ConocoPhillips does not understand what more Plaintiff wants other than API numbers. The API numbers are equally available to Plaintiff from public sources as they are available to ConocoPhillips; but ConocoPhillips will attach, as Exhibit A to these Answers to Interrogatories, a map from which Plaintiffs counsel may derive API numbers. 15. Identify by API Number any Wells located on the acreage covered by the Vaquillas Leases that were not drilled by or for Conoco under the Vaquillas Leases but in which Conoco owns an interest. ANSWER: Objection: ConocoPhillips objects to this interrogatory because it is incomprehensible, vague, and ambiguous. It asks about "Wells," which Plaintiff defines in its Definition 16 as "wells drilled by or for Conoco," but this interrogatory purports to inquire of wells "not drilled by or for Conoco," so the interrogatory contradicts itself. The interrogatory also appears to ask whether ConocoPhillips owns an interest in Wells on acreage covered by the Vaquillas Leases, but that are not subject to the Vaquillas Leases, yet Plaintiffs definition of "Wells" states they were drilled under the terms of the Vaquillas Leases. ConocoPhillips cannot be required to guess or speculate what Plaintiff is asking. 16. Identify by API Number and rig release date the Final Well completed or abandoned during Conoco's drilling and reworking operations engaged in on and after November 1, 1990 on the 26,622. 79 Acre Lease. ANSWER: The well was the Vaquillas A-7 249, API No. 42-479-41635. 17. State the date you contend to be the 90th day after completion or abandonment of the Final Well at which time a written release of acreage was to be provided pursuant to Paragraph 18 of the 26,622. 79 Acre Lease. ANSWER: ConocoPhillips believes the relevant date was June 21, 2012. 18. Identify by API Number and rig release date the Final Well completed or abandoned during Conoco's drilling and reworking operations engaged in on and after November 1, 1990 on the 6, 740 Acre Lease. DEFENDANT'S RESPONSE TO PLAINTIFF'S FIRST SET OF lNTERROGATORIES -8 Dated: July 7, 2014 Respectfully submitted, L-.--"l~~c.4_~~~ Michael State B Email: mpowell@lockelord.com Elizabeth L. Tiblets State Bar No. 24066194 Email: etiblets@lockelord.com LOCKE LORD LLP 2200 Ross Avenue, Suite 2200 Dallas, Texas 75201-6776 Tel: 214-740-8520 Fax: 214-740-8800 Adolfo Campero State Bar No. 00793454 CAMPERO & ASSOCIATES, P.C. 315 Calle Del Norte, Suite 207 Laredo, Texas 78041 Tel: 956-796-0330 Fax: 956-796-0399 Email: acampero@camperolaw.com ATTORNEYS FOR DEFENDANT CONOCOPHILLIPS COMPANY DEFENDANT'S RESPONSE TO PLAINTIFF'S FIRST SET OF INTERROGATORIES - 10- CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Defendant's Response to Plaintiffs First Set of Interrogatories was served via email on the following counsel of record for Plaintiff as stated on this 7th day of July 2014: Gregg Owens Raul Leal Email: gregg.owens@haysowens.com Raul Leal Incorporated Robert G. Hargrove 5810 San Bernardo, Suite 390 Email: rob.hargrove@haysowens.com Laredo, Texas 78041 Hays & Owens L.L.P. Tel: 956.727.0039 807 Brazos Street, Suite 500 Fax: 956.727.0369 Austin, Texas 78701 Email: rleal@rl-lawfirm.com Tel: 512.472.3993 Fax: 512.472.3883 Michael Jung Armando X. Lopez Strasburger & Price, LLP 1510 Calle Del Norte, Suite 16 901 Main Street, Suite 4400 Laredo, Texas 78041 Dallas, Texas 75202-3794 Tel: (956) 726-0722 Tel: 214.651.4724 Fax: (956) 726-6049 Fax: 214.651.4330 (main) mandox@rio.bravo.net Fax: 214.659.4022 (direct) Email: michael.jung@strasburger.com Counsel for Vaquillas Unproven Minerals, Ltd. DEFENDANT'S RESPONSE TO PLAINTIFF'S FIRST SET OF INTERROGATORIES - 11 - - RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL OIL AND GAS DOCKET NO. XX-XXXXXXX FINAL ORDER CONSOLIDATING VARIOUS FIELDS INTO A NEW FIELD CALLED THE VAQUILLAS RANCH (LOBO CONS.) FIELD AND ADOPTING FIELD RULES FOR THE VAQUILLAS RANCH (LOBO CONS.) FIELD WEBB COUNTY, TEXAS The Commission finds that after statutory notice in the above-numbered docket heard on October 8, 1997, the presiding examiner has made and filed a report and recommendation containing findings of fact and conclusions of law, for which service was not required; that the proposed application is in compliance with all statutory requirements; and that this proceeding was duly submitted to the Railroad Commission of Texas at conference held in its offices in Austin, Texas. The Commission, after review and due consideration of the examiner's report and recommendation, the findings of fact and conclusions of law contained therein, hereby adopts as its own the findings of fact and conclusions of law contained therein, and incorporates said findings of fact and conclusions of law as if fully set out and separately stated herein. Therefore, it is ordered by the Railroad Commission of Texas that the following fields located in Webb County, Texas, are hereby combined into a new field called the Vaquillas Ranch (Lobo Cons.) Field (No. q3~t 5 400 ): BALTAZAR (LOBO 6 10470) FIELD 05357 400 BARNSLEY (LOBO 10900) FIELD 05791 800 BARNSLEY (LOBO) FIELD 05791 400 BONEBRAKE (LOBO 6) FIELD 10419 500 BONEBRAKE (UPPER LOBO) FIELD 10419 800 GAUCHE CREEK (LOBO) FIELD 14735 225 CARR (LOBO 10100) FIELD 15874 350 CARR (LOBO 8300) FIELD 15874 235 CARR (LOBO 8600) FIELD 15874 250 CARR (LOBO 8700) FIELD 15874 275 CARR (LOBO) FIELD 15874 200 CARR (WILCOX 8200) FIELD 15874 600 CARR (WILCOX 8300) FIELD 15874 700 CARR (WILCOX) FIELD 15874 500 CATTO (LOBO 9900) FIELD 16405 400 CATTO (LOBO 10200) FIELD 16405 500 EXHIBIT A-4 _________ OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE 2 DESPARADO (LOBO 6) FIELD 24394 500 DIAMONDBACK (LOBO 3) FIELD 24574 400 GATO CREEK (9800) FIELD 34238 400 GATO CREEK (LOBO 1) FIELD 34238 300 GATO CREEK (LOBO 1-SEGA) FIELD 34238 325 GATO CREEK (LOBO 3) FIELD 34238 350 GATO CREEK (LOBO 6 SEGMENT A) FIELD 34238 375 GATO CREEK, SE (9800) FIELD 34242 980 GATO CREEK, SE (LOBO 1) FIELD 34242 500 GATO CREEK, SE (UP. LOBO STRAY) FIELD 34242 750 HIRSCH (LOBO 9746) FIELD 41659 075 JURASCHEK (LOBO) FIELD 47740 500 JURASCHEK (WILCOX 11600) FIELD 47740 600 LUNDELL (LOBO 9200) FIELD 55755 180 LUNDELL (LOBO) FIELD 55755 175 MCLEAN (LOBO) FIELD 59725 500 MUJERES CREEK (LOBO 1) FIELD 63668 300 MUJERES CREEK (LOBO 3) FIELD 63668 400 MUJERES CREEK (LOBO 6) FIELD 63668 500 MUJERES CREEK (LOBO) FIELD 63668 250 MUJERES CREEK, SOUTH (LOBO) FIELD 63670 500 NICHOLSON (LOBO 3) FIELD 65469 020 NORDAN (LOBO) FIELD 65934 500 POZO (LOBO) FIELD 72838 500 RANCHO VIEJO, S. (LOBO 6) FIELD 74570 100 RANCHO VIEJO (LOBO 3) FIELD 74568 680 RANCHO VIEJO (LOBO 6) FIELD 74568 700 VAQUILLAS RANCH (LOBO 8100) FIELD 93215 450 VAQUILLAS RANCH (UP. LOBO STRAY) FIELD 93215 600 VAQUILLAS RANCH (WALKER 8300) FIELD 93215 680 VAQUILLAS RANCH (WALKER 8600) FIELD 93215 690 VAQUILLAS RANCH (WALKER, N.) FIELD 93215 670 VAQUILLAS RANCH (WILCOX 11, 100) FIELD 93215 700 VAQUILLAS RANCH (WILCOX 11,600) FIELD 93258 750 VAQUILLAS RANCH (WILCOX 11,900) FIELD 93215 725 VAQUILLAS RANCH (YARSA) FIELD 93258 900 VENADA (9800) FIELD 93436 800 VENADA (LOBO) FIELD 93436 300 VERGARA (LOBO 9300) FIELD 93537 750 VERGARA (LOBO) FIELD 93537 500 It is further ordered that the following rules are adopted for the Vaquillas Ranch (Lobo Cons.) Field: Ji ! l OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE 3 RULE 1: The entire Lobo Formation from the Lobo Unconformity to the top of the Wills Point (Midway Shale) and including the above listed fields in Webb County, Texas, shall be designated as a single reservoir for proration purposes and be designated as the Vaquillas Ranch (Lobo Cons.) Field. RULE 2: No gas well shall hereafter be drilled nearer than FOUR HUNDRED SIXTY SEVEN (467) feet to any property line, lease line or subdivision line and no well shall be drilled nearer than ONE THOUSAND TWO HUNDRED (1,200) feet to any applied for, permitted or completed well in the same reservoir on the same lease, pooled unit or unitized tract. The aforementioned distances in the above rule are minimum distances to allow an operator flexibility in locating a well, and the above spacing rule and the other rules to follow are for the purpose of permitting only one well to each drilling and proration unit. Provided however, that the Commission will grant exceptions to permit drilling within shorter distances and drilling more wells than herein prescribed whenever the Commission shall have determined that such exceptions are necessary either to prevent waste or to prevent the confiscation of property. When exception to these rules is desired, application therefore shall be filed and will be acted upon in accordance with the provisions of Commission Statewide Rule 37 and 38, which applicable provisions of said rule are incorporated herein by reference. Provided however, that persons who are presumed to be affected by a request for an exception to the between-well spacing requirement shall be limited to the operators and owners/lessees of tracts, lease or units within one mile or less of the proposed well. In applying this rule the general order of the Commission with relation to the subdivision of property shall be observed. RULE 3: The daily allowable production of gas from individual wells completed in the subject field shall be determined by allocating the allowable production, after deductions have been made for wells which are incapable of producing their gas allowables, among the individual wells in the following manner: TEN percent (10%) of the total field allowable shall be allocated equally among the individual wells producing from this field. NINETY percent (90%) of the total field allowable shall be allocated among the individual wells in the proportion that the deliverability of such well, as evidenced by the most recent G-10 test filed with the Railroad Commission bears to the summation of the deliverability of all proratable wells producing from this field. It is further ordered by the Railroad Commission of Texas that the allocation formula for the Vaquillas Ranch (Lobo Cons.) Field be suspended. The allocation formula may be reinstated administratively if the market demand for gas in the Vaquillas Ranch (Lobo Cons.) Field drops below 100% of deliverability. If the market demand for gas in the Vaquillas Ranch (Lobo Cons.) Field drops below 100% of deliverability while the allocation formula is suspended, the operator shall immediately notify the Commission and the allocation formula shall be immediately jl J OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE4 reinstated. Failure to give such notice to the Commission may result in a fine (as provided for in Tex. Nat. Res. Code §86.222) for eac day the operators fail to give notice to the Commission. Effective this ;/,lf ~ay of , 19qg . COMMISSIO~ a:&ON ~..... ..... Cou1.tJ, To-, .....,, \ 26,622. 79 acres of land, more or less, situated in .. Webb County, Texas, more fully described in Exhibit "A" annexed hereto and made a part of this lease for all relevant pur- poses, including. limitations upon warranty as specifically set out therein. "11i~fuW;~~~'i'ri'~~oRA~~~--llM=•~---~F--:UIA•t=a:wm~o:::Do::: ..... ~clinda~......_~.--- littt:-*""-'*'--=-=-•-=·-.. --:a-.io:---..=-ao:::--~~::a.:-::i.,.,_ _ __ ..,_.c ••"' th• 11ur£W'M of taltuletin1 tho rental parmenlt Mreinafltt pro.,Wed for. aakt lafHI h n• •mat.94 t• romprbe 26,622.79 iurn. wbt-.hlf It lth&aUt tomptJM• More or 11-.. Five ( 5) : . !\uHHl 1•1 •h• othH pr1n·t•iDn• h•r•tn tont••nN. thl1 '-•M ahatl ta. fot • lff"' of=1Pit/uar• from '";• da1• fre:J• 4i ..,rirnuy ,.,,...•J and at ' ut111 u,..,,..11., u oil. 1•• Of oth•r mfhnal J1 "'u.SYctJ frt11a aaid lan4 H la"4 wab •hirla M id l•nd i1 f'W'llUl.J twreun•I•• . l . Th r••>•l•if"I 11) I• PAl4 ''' 1...... e:• : tO on o;t, } /hthor ,..al t•tOtluC'. . and 111.vfd hom ehi•I tu~d. th• Hn1• 10 ~ .. d•l in,..,. a1 1h1 •tll• or LO th1 cr..t1L of lA•Wr •nlO I~• lJll"9Ju..1 ht "lurh th• ,,ir1 m•1 be tvt1nf'C'tt'\I: IA•"'" tn•1 ltclf'l1 l1mf' tu tun• 1•1nrh1111# •••1 ruud•1 1oiJ 1n 1U , ...... ,... " ""· a•11r11111 tl''I• nu1rlitl 1•ri. • thPufnr &•O•all111c for lh• fi•IJ •hrrt 11ro.tu11M 0'1 Iha d"t• of 1•1urhaa. : tbl on ¥"'· iru~Jwd.n1 C':t•1119'hf'~•·I wu or l•lhrr IO••••..,•u• •~l·UalJC'f'. i.-t•.Jwt•l flut11 auJ l••1J an.J MJld 1.1r U•11"1I ofl 111• ••rtnii1r-. cir f•1r 01• .. ,1r111rt111n u f •.,,,..11n.. ut uthrr 1•iul11rt ,,,,,.,,.. frr.m, " ·• 1nuawt ••It•• •1 Ch• 1iull uf 1 It:.. th·•f lh• •n 1u .aid or 1.1•...t.=JAGAO=t-.OFtl~ih'.. f'tf..,. 11 • l!illl •tll nf'I thi1 lu11t or on &t'r•nll• t•onltd th•rtw,,h tn•t raa 1• ri••\ l•1nv • ••l•l or u ....1. 1......... W•f 1·•1 ••• P>•llr, 0'1 ,,,. ) ... tur• _ntnr\1 l~U, Ll•J"• "":'' u,. 'l"I• nn whi .. h 11 • ••itl Wlf"ll 11 1hu1 '"· nr <': •_tht 1Mn·•h 1 Qft 1oe1, a n o gilS -"•IJ a.. 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IA·11•t,...tu•U f 1ir fut u ..·111•l 1n lh• a1•111 4•&1rtulie rt..·nrdJ uf tJ1f' ('1+1J llt w in • h1d1 ""' 1,.1 ••··I 1•r1:ut1M·t a re t1lH.<1t• .. t on 1t,Pfrt111wr.1 1l1•p• r.l•ll• llC nll•I •••·1111(11 .11 . ot( Uu• •" • •l••I ""' r1·.1,:t" a.11 a , ... ,1 , ..1 1uut: •Hui ,, ,.,,n • u rh , , ., ·<·r~t111 un 1!1t' u 1. 1t • h11o a 1..,. rH ...·11'• "' I•• "U l •nit11•• l1rtt"t11, tl11·1r f1nr•, "un·•·., .. •r•. 41111111 •·~ "1.,; h11 , Hh''"' J·tf'll\r uf •hf"U1rr ur n ••t t he 1u11 t 1• I1ir.f'W1M' r f frt't~\ • 11111 tu • i i uiJ11·r ' '""1,1r• ,,, • u t f •r r , m nif"ri.I, ,.,,11;1). ur hlllf'r ri,cl1ta •n h111•l 111d11dnl 111 • ••··h 4 f•1l. 1,• ..,.~ n 1•1)' •l 1U •l...-11•JO ~• rrc•M· 1i. 1•~.oltt1 ie ut•l aur1 a.·fui r ur .., • •., r•1n 1a,r fl' •f•il 0 1... u1\111n • f11r 11f t1 1D1&•!di11.; kl\ 1111 ur ); IUI "''II 1•n tl1• lr 11,...•I L·rt·11111111•11t, a u d lhl" ll\'Vlt•I UU •l n1•r indu•h -. l 111t it i1 1111\ ft.""11111"1 tu ,11r h~1IC', i"11•I u t 1,...,.,.. Ul·"n " tud\ a .... 1 C"t4L•ul· ~.- ••f L''"•hu·111.i 011 ••t .,..•• 1n Nu 111.i ' l 'U•••lll.t'• h•• thuf'"ti ;r.,, .. l'"'n rum1•lf"t1·4 o r lH"lll •tnd\ 111" nll 11110a f.,, t he d110110,; ol a •c-IJ fo r .., 1 t•r .,;"•1• h"\" 1hr1r111fvrt' 11'\11 r .. mnu·u··...,J, I n l h e f'\r lL I of 111·tr111t1..11• fur 1lni1,n.,. u n vr JH• •i11r\ ih n ,,f f•ll "'lit",. frt1m • ny '"1tl oC " ~,c•1: .....1 unit \11!1;rh 1Ju•llt1lt•• ..,11 ur " 1•n r1«•h Hf th.. la nd tO\o•rt,.J t•)' th1111 Jf'1"""· f toM•r•tll"H of •hf'thf't tuf'h hL111•rkt1un1 f,1r 1h1 ;l 1 11~ •f'l f ('11111111rn1·nt ur o111rh l''''"l1;,·!i·•U "'"" M'l'1~r"I l••l1•f11C" • if Aflrf Ut • f' \1~·11ltun ,., l h 1• H.•trutnt•lll u r the' io•trunir nl 1W11111,1u1t111.,; thl! 14 ... 1t..1 utu t, • u1·h Ol,..fl• l•••IU .. t.all l~ r ..,, ,.,l,.tt'll •• uL..-r1tl h ol1t fu r dn:JiOM "n or L•f'l ..i Lh'ltuU of oil ur w...a fr111•1 l1u 1J ("tl~._,,.,l 111 tb1t lt':Ut' • tit-tht"l or 111··1 u,. •f'll ' ' ' • t't1t 1-e 11.. hl•··l on 111• ••ft•rtllol\'• ("•n,.r'"'t h7 th 11 J.,,, ... '""t 1n t L!r h f \'f'"lll u1•1·t•t ;on• f,,, Jril h n.c 1h.d l t4 1l"'rn"l to havr '"''fl C'umto•·n<'""J 11n • •iii lu n1i • 1th1n 1h .. nw•hi h.,: o f l ·•rtt,CrkL)h C. uC U11 • Ir~..- ; .. nil lhf' ""t1rr Arr f':•..:• r uot t 11 11tin.r t uC"h u n u t•r uu1t•. •• \o oil )Ultl att\.I, ur 1"11h .. r l"f t11,m. n 1 brro-11, ' 'l• •\ ,,t....l, ' t ti1dl l,..• trf'lth"t f11f &IJ L•J(11t1'•-·,, f' \ l't"l'I thr l •ll) mt'lll u f royMhH"f un llf•cl11rt :o n fr.,m th• l•utl... t UOi l , fU If 1tof' llltW Jf' "'f' r• 11il'lu•l1.._I i11 f11111 lf'11llt'. l·'.;r th~ p_u n .. 111t• 111 1·pt111 •uti11,.: lli1• ru)u1t1r11 to 111·h1rA 0 "11,. ra ut r u)· u lt1f!t a11•t 1•t1) Jnrnt11 t uJt cir &• ro-.t on .~in 11 1,11 t1tt:h Cl f tlu• rn 1t1,.IJ 1,.. t'lll.11•..t 1111 , ,, ..1i 1ct~un 11 t 1·11 IUl•I ..:11•. ur 1·11,w r o l lh• ·m , h••m lhl' 1•o11•h..t u1, i1, lt1f'tf' tha ll toe a ll•"'Ml"1 lo t h 1· hu:•I ('0 H'r• d by th11 lt'1tmt! 111;ti irwlti.11•'1 II\ 11 •• 1..t uui\ 1t1r I•• .....·h ••·••• rut,. t rit•·t • :Uuo th" unit 1f t )u • lroiiu <'.,,._.,. w•••U•U• tr•('U • ·ithin t h• u1111t a ••ru ra· " : .. 1rtiun \, f l h• uil Aial ,.:.••. " ' ... :h.. r ••I lhf'fU, ,.,u.1111....s l r" m lh" ,,..,j,,.t u w t 11ftrr •h,lu r1,n,r · thtt.l u~t for u1..-rat auna on Lh• 5..111!.-t un1I . S11rh 11 lhl<".\ti.1n • h 11ll . .. l•t\ kO .. rr r :1.:'" 1..,,.,. · t hat IJ to • ·•)', U "•r• .,hall Lf. 11.:.<"at"I leo l h.- • l' l • hiltt 4"D\'f'tf'lt i•r thi1 It•~ a nri indu1tN in thf' ,,.,..,ft.J ut11t 111r t 1'1 ··:tl'h ..,., • ., .., . t ri..·1 v. :lh111 tt,f' Uhl l it li1i• lt';1"4' t"•nll'r• .,,.,,,.r:1t.• lf"o'l11 \l. ,th10 lhf' Oll il f thfl.I i •ro rut,, l ml"\illt\ of Lhe 11,j a ruJ JCll.I, u r e1'. h f'f ••t \t.f'm, L•f'•l111·r d fr1tm 1t1f' l"'" ':,.,1 1uut "'hi··h th• m1mt ..·r 111 t111tfon• ••·t..:o• 1·11\'••tt"l ••,. 1h.1 l('a•e i()r in f'nrh 1urh u•1•1ul\t• Hftl'I) •w it 111rJu4lc"1 rn tht' i · 1t1:1.. I u n 1l 1.-·.• r• lo 1n.,.1111.d 111,mt.,·r "' ,.urfo,·• 1~· r1•11 ~111'11111 .... 1 w 1t1• i •1>t1h1I 11nit. ltu)·ull u• • h.·r t uhJ•r •hl\IJ a.. C'unu·~h"t en t h• l"•r1;on o f 11ur b s1r•1tl Utt 111 n . wtif' lh.. r i1 .... "'' 1u.1I ··n•. 11r .. ~1twr "' Ow111, .... .,1i...·;1t1..1 tu th('" 1111:.1 ('p\'t•rt.. I 11)' th i• , ..~ ,.. tlllcl it1d1111....1 i n thf' u n il JU•l R• l huu;:h &1Jrh ,I,. ·l11r 1i•lll .. ,.,. lr•1m a irb l.u t•I. ·n ... 1•11'tllJ" t 1••n ' " '"' :1n ~·ii "'' :1 "'d L t.• • t•111;11i1l•·rt'lll n• l H•ul1.rt 111n hotn 1h.ft lf"h~ or t')il ,.,~ 1lt'\l l1n1i fr um .. b ••·h it i11 J , . ..tud 1.111 an•t h ut nl ,,r, ..1 ,.·t. .. n f 11°111 ., .::•• , ,...11..I 0111l ; •tt.I l •l'•• lud .un ' "' " l 14 J.:M• • ..II "" ii\ t-e C"on11ti dt"r... t .,. t'r n.l11ct111n horn lhf' ll"n•r '''Jo:"•• 1~ .. ; ....1 unit fn•tn I • ·h :"h .1 1• 1•r • ..h ;l·111.: t.t11I n ..t f1t•lh ••• oi1 '".,:... J uf",; l. 'fh,. fu u nutiun tif •nY uuit h•·tt•lntl•r 11h11l1 n Ql hA\'ft t h«> eft.-~l o f C'h&nj.(tl+a." lft• 1l•r.ruh•11 ,1f any olc:1t) 1rr.1. d 11r ,.hi.it· in ,,,,.,tu r~wn rt•) ult t v.h1d1 mit)' l 14'1·umf' ' '" )"1,1dt' u11dtor th1 • lt-ut'. It thi• )1•;, lf> n1•W or hf'tP1'flitr r n\'f'U '"'~ :1J Kl f" tr .. rtfl , n•• , .....,iin.- tit unl::.1:Htl••h uf ,..,,..,:1y '111:rrl'•t •• l"':•t...n "''' MUf"h .,.~·a rail# 1r1u•1a. i• i ntr11ttf"t1 or •hfl ll t.,. im11l1ed or r.-•ult n 1tritl1 trrim 1h• 1nrh111111n u t •1.t .. n •••11;.,r;,1e lra•"I• "''ilh•n this l1•a""" 1011' l.c·"' ll4-C ai11all r.~\f"flhf':r~• h11\"• lh.- r 11lht •o pt.1111&I11rnv1d..J . t ...n·e- with fUhll«'llUtnt •Ur..ati11n '>f fl"...lucl1 n n •• alio\'f l•rrn j,1,..1. As u,., .. t 1n thi• l·'•'""'°'''b .fi, t hf' 'rnr1l111 ··,.•·l•l\U1lf tr11rt'' m"~•n an1 lrart w it h ru1alt7 o .. nt'ra.h ip d 1fCuin•. no w llr h.rrAf l #t, •alhH u tu &;•rt i.. or •mnu11h, lrum th•l al l u ""' cthtr i•arl ol the lra11o1....1 i •rt mi~. . 6. It 1•1...·ri•ti11n• f.1r 1lrllli ni: nr• nol r onim.. nr..d on u.id l&nd or on acre:tJCO pooltd th•r•whh u aho\'e [lroviJN ~I\ or Wfor• onr. >P.lr frr-m thi1 d;1I•, th• lf'aw "hall tl1rn h!rminatt u lo Loth pattiu, \mlna on CH' Wtore aut'h anniveuar7 dat• LrtHe ahaU &JA.7 or l#ndu (or •h..U ma~• a Lona fide ott•m~t ID'"''"' «nd«r, in .µ.!l~.QJl.. .N.?.lJ.iQr!~. l ..I3.~l') }< .. 9.f ....~A ?:".~do aa herolnafttr ot•l•dl to 1At1or or to the I• 1••1·ab le hu.un•lor r•~ardl<.. ~ tld''"'2 ijiflUn"iPof oaiJ land or U.1 rontal•I the 1um otf'.Or.t y-~ ~ gh t Thou sa nd E1gh t Hundred Eleven/1>o11ar• .. '18, 811. 2 6 .... ), (h.rtin rnllrJ rrntAI•). •hi .-h .t•• 11 llh'o t.h" r1. 111nh·r1r•·nu· ra o f .tr ill;n;r 0Jlt'rati11n1 ni•1 1.,. fu rlhl"r- 1leofrrrf'd ! 1lr IUf't"t"fl~h·e 1'f'riod& of 1• ·•lwe (1:) mont h ' ~t"h dur . n•· th~ 1•r1m ar7 '''» lllt'lil • or t• nilrra · t•rrn. 'l'h• 1•11.)·m .. nt •·r t•·r11lo·r of r1·n l " I u n•l.-t th i• f1•roticr.1J1h 11.n J of ro y.1h r urn1rr s••r•J.:"nph 3 " " an7 a n • wr11 f r••m •hirh al•• i " t ot t... in .: 1Mrl c,t Ul't-.1 tn;\t t~ rn:11lr t•)' tt1l" irhrri· f i t 1inh Of J,....,.:i;.f!!P Jn,"liltJ o r dr)i\'Nrd to \he fl"rtirt entt\ lf'd thf"ff'IO n r l u r.nitl t11lf1k n n r-r t ... ft11 p lhf' 1l 1t~ f' of i•Afmt•r,I . U 1o~Jl' h h11u l.. 1 r.r :u1y 11111'1"..•i;ur ' ""'M~ ·-.tiould f• il, liquidnC• o r 1.. aUf'<"t•"l~t 111 ft nnt hflr hnnk, nr f••r' any rc-t1ll'nn Intl 11 r rr:'u"'" '" Arrf"p t '"'nllt.I. 1.. .. ~ ••, .. hnll n ••l I•• twr.l in tl1•f.-uh for f 11il11r• lo Ut1•L.•· 'iurh 1•1umrnt or t rn•l••r of r"ntAI un ti l tMrir t3 il) 111\yl Af1.,.r lA"•.,~·r l"""""'' a 1.r1o;·1·r t-r~11r•h l • l1· j , 1..1rumr11l un1nifl.C 11.n.. tl1•·r li:1t1k 11• fll.'.rh1 1n rrc·rh·r 111111r h 1•111yMrn1t ,, r t•tL t\f"rt . It f.,r• ~ eh"ll· " ll t'lll' I •lrre • .,.,, 1.11 ni• •• "II d ..: ;, ... , to ~··r ..40 11:.1... 1nNl .. n 1... ,.,, l 111f' lt.lh•ni1•l to,... , or ol1' l"'"'; l r r 11 t 1tl tu " ''"" 'r 1· utit !1..t ehf'r..Co 1u·r 1111l;n.t 10 14'•"•"' • rtot"•,fth •'T I' •" l .. "'"' t , •h•' · \ •rt••r \o • 11d1 11t ll ,.111H••I 1•a)' lnf'l1l 1or .1 .., ..., i1. h tH• ,: i¥rr. 1;111......, nCtl•('r. i n a1·•'ut1lunt"tt ~· i1h aul 1u .. nt 1•rO\' i•u•fl• n f th ·• !"ll 'f'. c•f h i• r i.:h1 I' r "<'r i•·r n-n t .d, •.r 0 - .... a n~I i f , .,.-h l•h)'U.•·nl 11f •l•'S"•"i l . •htt.11 inrtff'l·ti\'t> u r f'rr11n•.,1u1 i n Rll)' "''.!:t.r1l, 1....... ~~ .,hM ll h.• unf'.m1litin11• 1ly ,.t.li i::-.11....1 h1 l 'l'\,. I·• • u ·h r.,..... ,, 1!\.- f ••n1 11I J•ruJ o·r: , ,,., ,.,.1,1,. f u r II·• r 1·:11~J l •rt•o.t ln~·11h·1,I. nu.I th i• lra,... •hnU not l••rmi rrnt• lou t •hi.11 l>f' f'U1\inl•i•\t"11t in thf' 1:oim1• m ahn·•t 11• if •:Id\ 11·rrc1n1'"'"" ur ,1wff,.,·t i\' • rrntl\I 1•11)'rnPnt or dt•ltt••ir luul l...·n 1•ro1"frl7 nuutt', 11T•ni1lflll thnt thf' rrtonf'Ou• nr l nrffl"l'l iY• t f' nl ni 1•:•)"h lt rH nr rlr1")'°i1 No c-orrrr1 . ..1 .,..it ti:n :)(, d .1r• alt r r ,.,, .. it1C 117 l..i·"""' of wri l •rn nol ire frum •udi (..,., ,.,o r o l aurh f"tn>t aC'romr1m:e'1 toy auC'h ltu t rum .. n :a " ' ·~r f' r .,...... ..1try (1• •n.,.Me l•·P~rf' ''' h1'4ke 11ro11 .. t I'·'~"'""' · 1't1.. du.-n C'hah ' '"r1n •11t i1 .-11n•i1if'r;\hon for t h ie litn~ •rcor-l in .r t•• it•· l•rmt •n•I •ha. ii l\l"C loe ..::.1C'•f1-.t ... " llH·t• r•1.1.-1I f o ,. • r..-rir.I. i.. ..~ m•T at any t imf' o r linw• ,,...,.."'" •n il dr lh·•r to Lr~.or or co th" df'('Olitnt'J ah.n ·.,. n1ut11..1 '1r 1•1.tu nl rf'1"11rfl A felr11i.e nr , ..: ...'l!>i"t , ,f lhi"' lt.":l•f' u to "'H or anr Jll'rt of t h ,. nt. ,vt.drArrit..;.d Jlrtmi"""•· or o f anr m i ntra1 <'!' hnr ii nn und"r a H <'r •n r ·Pflln thrMf. •rid thrrf'••Y t• Trlw~ro.l o f all oltli'R111t1ona •• to lh.. h":t'aM-.I land or l11t .. rr.'it. U t hi• 1f'"M i• r"lu ..,.t •• to atl minPrAlt and h o ri ron& u nrl.-r a i•ttrt :on ol •he land '''""t'"'' ,,,,lhi• I••~. thr rf'nl&l• and oth,r J•nrn\•nu comri111tod tn • ctnr1lanre th•rt•it.h aAall U\•r~upon be r ...,ur"'S h\ t~•• prn1"'n to" th.t 1he n11rnh.r of 1wrface &l'~a • i lhin. l\.lrb fltl•ueJ portioo bear• to tbt totaJ number of 11.1tfate s.crte wbSt'b ••• ('nY•rfld ht thia Jc ..• imm4'11a t•lr prior '° aut'b ,.1..... 4GO . I Vnt. 4Gn r·.~r 326· I . If a1r Jor f •\ 1li•··•t\rl' " " '' L''""l11r ll11n or ulf. " " " 1•r ••tli•·r mt1oN" I ,,,, • l\l•I l"rnl 1•r un lll"trtt~'" ,.,,,,J,.,I tl1f'rtiwi1h. J , .._.,,.., •••·,ulit 1lr1. I '' olr y J,,,;. h·•I•·• l l•"••·,111. "' If " ' ' • r •l•h u\ 1•rr- lllt••I 11r 1..t11<"l 11•11 t • ( 1111, ) '.k• ••t ••1fo••r 111110 r 11I. llu• &•lt"llurJiun r11•·rt•• f ..h1111 l•I 1 • ; u.tt f1 •111' n11\' , " ''""'· 111 .. fr1o••• •11..U flf h ••l 1.-r111lh HI" 1f I 1·••1·r • ••011111•11r,·• 1111•·f11t 111r1• Cu r 1lull11tlo' or r•·• ·.,1!.111..: "-"1ll111\ .,,,t 1.;11 > 1l n.t·• l1, 1•1t'.1f h· r 11r 1f il 1.. • 1tt. : 11 1!,,. 1•r, 11o: •r v 1' 1111, ,. .,,,.. ' """ .."• u r 1e· 1111111·• lhl' 1•1H t11•·"' t•r l••111l4·r ": r•·ul a l• or t'o111u11rHl"f'• u1..-1,..c1on• fut dr; H1nt1 ur r1•.. 11rlo111j( ••n ur llf'f•u" th" r •·t•l• I , ;,.,.,. •' •l nlft n,..,, • n• o11··· 11(h·r 11... . . ,I 'll · · ····· ,,, ,.; , 1 )' j·h~· "••In''·''" ur 1"'u11,1d ..r1un .. , ~1r.- f111I·· .., ,.,.......1iun fl( . ..., ......,....,,.. II at •II)' 1 1111• • •1l···•.. j•1••11t .,, .. . .. , ,,,., 11.1• • , ..... r '" 11,.. •·• 1·1111 .. 11.: ••f 1l1f> l;1•t ~1·;, f ••f 1111' 11r11u"f J' l1•rr11 111111 l •f~ur 1o th" 11,.,,.,,,.,,1 of r•il , 1::•• •1r 11•tu·r 11111wrnl t111 • .1119 l•t111I. '• ' ••n .nt'f•·•· •~• , .. ,.,Jt<,t 1111·1""'''11. I .. .. ~. ,. "'h"1~l·6 1lr.1l" 1lry 1, ..lf" Owt(..111, nu n ·11tnJ l'IU'lllt'fll ur 111••·rati11ru1 ure 11t•1·1•, ,, afJ Ill u11h·r ln ••·1"'11 11,.. 11•;1~" in f• f"'" dor1nJ( 1 In• f1·111a.r1·\•·r "' ! t .. • I'' 111<1• )' lo·• Ill . Ir lit lh•· ,. 'jllft1li111t "' I hf'I l•l lll)lllY I 1·'1n, tnJ. ··.a• ••r ,., ...., u11111·t11 I '" r111l tl-f'i n 1~ ,., ...a.,... ·I t1'1 ,. ... t I i.1111. 1.r ,,., 11r•r:H·• ,., .. 1),,t tl1f"1•·\\llh. ~ dlt l.r· ..•• I• t!1••11 l'U•'.•t1~1'il 1n •hill1ni.: ur T11\\.,.r., 111.i u&•1•f:1l1uUt llH•n·••ll or •111111 lu1~• t'ntlll•f,.1111 "oll'v 11"!" tJ11·f• "H 11111htn ••\I~ ,1~u 1 11:1 •1111 1111••r lo 1~1 • rn•I u( the 11ricn :,rr h•rm, th• l•neo •l1n.ll r1•m;1in i t1 f11r•'f" 1r11 lnn• 11• 011rrfllf111n11 ''" •:•uJ w•ll cir f•.r tlrill1t1.1t ••r r •·• ·111 lrntf uf """ 11ol•l111 .. uul l\f"ll "''"' l'l""''#°u1,..& "'•Ill Ill• 4"1"";'''"11 u f 111.. r• lh.11• •1 \t\I 1 ~11, '"'"'".. rutivir ilitY•. a m l i f 11.... , rf'•11ll 01 ft1.i \ •t••l11t'ti .. h " ' *>11, -'"" nt o t! w r n 1111.•1.1I, ' '' l" Hil lt1•·r,. .• h 1•r AS 111 J, J::l• P r 1ttJ1t' t' 1111n('thl i • l '•"•h1t••i f~ u111 r a i,I l.1hd r.r Al'rt·11.r• ,,.,,,:t"'ll U1C"r.. ...-i1h, ,Ar. / 1~~ .1, .. 1 ,,,,it •I•-. .::' •"' '"'' L, 1.,..,..,-c i rl a r r 1r1l.t1.rr • 11 h lli • t..ru.e h•tf"l•f mny t .. d .u11h-f'CI f,r 0 J..,.,,,.,.. l1r i 11,lnlf11f'nl f .i r"'t tor , ..,.,.,,) ;,. Ott! 1tt11ro1•ri-.t•· r•·1·•n .h u( rt1" • •1LJht1 1n •hiC' h Ch• 1... ,, ...1 1•fr 111,,.r, 111.ro 1 11u"t~I al "nr 11i1o., after t t1 ~ r11m t•le·lnlll 11f a dr1 h•1lr u t th4 f't•11111:1ti1 •n to( 1•r• " lurr1 .. n 11n ~ ..1.J 11111! 111 1J,,. ...:.. 1ot • """" "' ' '"• : le 1•rol•1o .11,.: ••ii ••r " " • 1n 1•:1)"111w ~·11,nl it 1re 111loold 1.,. l rn11whl in nf'I • •IJllirf'nl ••mJ-=-ftft:;..mwt~"1Ro:fi>tAili'~=t1t;:tr, :r.r.:11q: r;."':q "'"t 1tra.ln i nw- 0 lh1· lr.u•-.I l''' ''""' •. ,,, orf•·••"•' ' "·ml...6 lhtrt•1th. IA·U~<' •.cn1·• to ..anu tu•:h ttflM:l •f"ll• u a rt'11 M•n11My ,.,,,,,IC"f1t o,~ratot • hlll•I tltiU \u ..ln th., •Aln• 11r 1.1111:ar ,,,,·.-11.•10111·4·' · 1. '"""'.'I'·• fllh:dl h:i\,. 1t1- ri~·ht ftl aov lime flurinll ()r "''"'\ht f!'11irat~on n f thi• Jt11'6 to rf'n\O\'• all l1fnl•l"r!J fth•I fhturl"I 1•r1v•·•t b, f.it1""t n" Mi1I lnwt, ~11rh111Lu~· Ill•• 1ud1l lo 1lrnw a111l n•m11\·f' ftll ciuin;c. \\'lit>n r<'ltlfirr1l 111 [A'c"nr, i.,..,.". wHI t111rr Rll L'il •'" lin•'ll t ..·luw or1lin•ry (•l 11w dot&1lh, a n•I .,,, ..·rU .. t ml l 1•• 1lritr1.. l "-ill.in l •'U huo+frN 1:.!u~> f•"f't of Al'\J rH1dt'ru-• or l1iun 11uw un •n~J l:u1•J • ·i\hout J.1·,.,,\11r'• r1111t-••nt. P.. Tl1e r ;..:!•U 11f t•i! h··r l•"rrv ht-trnnit.. r m•j 11111! 1111ui.rn,..1 In whhle or •n r•ttr1. •nrt t he rrn ¥i1io'11 h,.,,..,, 1h;,U ,.,,,•tul to tbrir f1..i n . 11 tJuM ... •1rt •n·t "~~:.·ra ; 111: 1 110 1·h a !..... 11r •li vi1.:i1n io o"nt·nhiJ• uf thit l::uul . rf't1tnl• or r u >nlt i1·•· · h ·••t•\'f'r •rrt1rn11:i•l1f'1I, a hall •'C·•' r 1'1r tu 1·td:1fJ"'t th,. ••t,J;..:;i~ t1·in• flt .t1t111n: •h fi•'"'" •" ,....,. •..,. : l tt f> ,_n,f· flO ("h :\fll'.I' nr 1t1 v1J1l•' ll In •11r>t ....... n.·r11f1 i p el1nll 1><" h ind111i.: ''" J.--,.~ t1 rit i l t l1 Jrl \' , :11') 1 t la; 11 nf ~rr r.....11... •h:1:1 n .1n• t• r n f •11 t ii ..h· .. l t.,. u·;•1· : rrf"ll \J. S. tn;ul nl f 1!1<\f•1•'• s•rinri1 ·ul a•lal"'r ol ' "'"i11rM •·ith • 1·f'r t if i•"I n 111v " ' ,,.,.,,,d•··I in ~i111 ri1o·:u "' u 1• 1r 11· ffl••llt• ··~· ••t..1u·1t1·· "'!lfllO'. 111 1 :~·· 1'\"1°l1l nf "lliti ..:urnr z.t ~l rtro( ' n !i\holf' or in 11:ul. li:d.iti l)• for tirrat"h or n nr ol1ti1::ilf11n ''"''" Ul.t .. r "'""u (t4t .. ,..i... ,1\t'l7 11:•••r1 lh.. tm11rr ,,(th.~ i, ._, ~,. ''' <1f n 11••rt.,•t1 1twu.. 1( v.· hn r1•n11u111 •u•·h t.r..:u·h. Jn the t'\rflt " ' lht 1l1·:1tb ••f #llt\y i·•·r111°11 f" nt;tl•"I \• • r•·ntAIJ her.-. UIL•l1•f', IA·o; '1.'t' 111.1v C•ll)' t1r !f•h•lt·r 11u.-h rr11 t:lla tn lh1t rtf"•l•t fl( ll1f' d"e":l'••l ••r thf' 4'1 t-ud1 I f'rt•m't ••r tn ttitit J":r1t ru.. lit in t tu· 1l••l"••i1 " r)' nanll··I hurin; or, al 1...... ._,..,·1 1•lr r l iun, the 1•rt11 ~1rti11n:-i1.- l•:t.rl n ( 111ai1I , ..111Al't tu .-hirh 1":1."h l• :l~li"'il1!'t11 t i~ f'"1tit1f 1j tn"J I •·• 1•:1111 nf tr n•l1·1t·•I lo t1 im 'w1•;11 ,1111..; , f\r to hi• •wl•MHlf' rr...t :l in • aid dl"t" •~ttur, : ~~--llNIS~U·mtmr=la:mqc:~a:uc~D:icpldlila::.C::Ole m:da:i::mmumm:ac:us:: aui:bmo:t.:::imdaA:a~1JaA:;im::la4J,u.c; ln f'n•n!. 111 "'"'"i~ nmrut of th i1 t..:i.. f' h~ to • &r~r.-.cat ""l 11u n i11n ••l ""i 1 l"rul, ih1 · ' " " ::.:• ~·":tul1.• hrr,·u n ct•· r •hAll lit' n t•L" Jfl 1unnl·lir •a l)tlt.,·rrn thr ~ \·rral lf'.U·• ·h n r.t uwnrr• ratnl.ly •rrorJ1mt to thr • •irfar• a r1·a nf . ......., . • •t•I .1.... h 111t rn rrf'lt11.I 1•u)' mtM l1r 1111fl ahnll not "'''"d the riwhta ~r o' hr-t ).,n1oP.h nl1I ownt rt h.-rf'ttnder. If 1i' o r tnon 1tlltJH l«1;rnt t n! it lflltt to ro1 n lrJ tlrt~U n•trr, .i...._,,.,.., '"">' • i 1hho1d Jl:l)'tntnt tJ1crtuf u cdt-,.1 •At.I unl il furni11bt'Ci with • n curtJ:1i.l1!1 inttrumr.1t u:ttul~t lt1 all 1udl , .aui1·1 dni1:notin1 an • .;t"nt 'o rC'C"t'i\·e ua1m"nl for all. · · 9. The brr:1rh tir Lr"!'"f' of 1t.nr ul.liw-"I inn ar•~irur: htr~un1t .. r 111hAll nt•l 'f>•lrk a torftitur~ or termlnntion of 1hi1 lt:u~ nnr r;·uiPe a 1..rrninl\linn o r fl"\·rr111tin 111 til•• f'!llt:lt4e C'rP'Lfrd hf'r•t•y nur •~ i.;rnornl• lrtr C'l1nrrlhition h..,t.. 1f in 111·h11l11t or In ln,rt. Jn lhe l'\'tnt lrnur t"IJlllitlf'fl U :1t 11r14•rnti•>n• are n11l al ar11 t 1tnt t"'m.: ·C'flOliurl""1 in rom1•linntt with th l1 :1r11I 111r1· \l•·H l ·•' I" ,; J·• ;.,., ,... I h.~ 11!1 a rr.. nt:t l1)lt"ru1.r• ru1t t n rint'\t IO';i of ''O M'rfl of th1 ar~• reulnect htrtundu and ca 1 al.I• of 11ruilutin• 1 11:•• or oth•t m ineral in ,.;,y iHlt qu1an1itin. lo. J.r-."''" hl'rtt1.7 ..-arru nte and •~rt'l'S to dt"f•nd the title to uld 1an•t and "Krttl thitl IAHH at lt1 011tion m11)' ttl&C"hnnre •tior tA>. mc1rt11:h'e or •lthr1 l1 rtn 11t••n • n icl lnn1I, •lth,;r ln •hOI• ur in s•nrt. ""'I In. •vtnl Ltott •l•lf'I • 1>, it 1h11ll 1.. 111l1ru~l\h•d to •urh lilfn ""·~th ri.,;ht •o f'rilr.n• •:lnir •hd 0 "''l'I' rr111:d1 1u•.1 r u)' flh14·' "nruin.h htrt•u111lf"r Inward ••lilf.t· lhM Hmf'. Wi1h11ut im111tim,ent of IAUl'f' t ri..ihtl \lndrr tt1r -.·nrra111r I" •1rnt n f h11u"r hf lat!,., H I• tl,:ri ... t thl\l 1f thit l"n"~ t"11\'f'r• • ,,.,., inter••t in the oi l. •••· euft1hur. or other minu•I• in all or •n1 L)art of 1.• id l•n'-* lh•n l hr- t'nlir .. 11n•I 111. .i i,,·l.i. ..1 f~ 111inwl• H lntt '"'hPlhH 1Aa1tOr'• int..rC"U Je hn•in •1•eorlfi"'I or not), o r no lnlHHl th•rtJn, thN1 ihr. r e na 111·1, . . .JC P~~S::...ZIR:lncmca 1tr1·ruinac froru an1 11ut a1 W • ·hkh 1hi1 lr-ue tuvf'r1 ff"U rh•n aur h full inlHHI. 1haU 1.,. 1•ai1I ••nlv ir1 tn• 111111 ..•1 \iun ~:.,~~·~·f,.~t~r:·'!';~~:. ~i~tie i~~~. •;; !~:~i·~·.:~~·~ =~,i~~:i'~~i~.t~~'ti!~'p:::;l:r ~~~l;;~~-~~~~. ~b~ 0 ·htrtun•l.. r ahal1 not iowat r the ri•ht of l..t11N to ttllute ror•lliH. :=. •h1rh thP i1;:,., .... t it.1•u •1n, if a 11r. C't.\'f'tf'1t h1 thi1 ltklf', Wu1 t •t lh• wholit •ntt undi,·idf'1I (ff 1imrl1 Ht&t• thrte~n. All rn)·11.lt1 lnh·r.-.. t ""'"t'rf'!lt l•r . ~F::f!:. n~t •t;.,i;:r:;:~~~~,. !,:!~'1'~ai4 ll . .Shoulot a.... ~.,. I"" flrP \f'nt rd f mm complrin• wi;1h •nr ir•,1t.a• nr im~l i !Pd C"ov•nant of thi1 ll'Aa.t, f'1>m f'nnduC'linw drillinw nr r••otldn• OJ•f'rallu••• thrr ,... •n of hum irr oo.lurini{ nil or M'M tt1•'l'f'lrom tir r•""-'" of a1·nrri1J <"If or in•t.llity lo nbtain or ll) UfN! .,qu'i11mcf)t or m \lr:ial , or br oprn1tm'h nt ft1 r1·• maw11rir. ""1 ... tdrtal or flt•t• J•w ur Ah)' nrd•r. NI• ,-.r rf'l(Ul:oi1iun uf ~ovu·nm•ntal •uthor•tr. tll•n .,.hilr .o 11r•·u"' '"·I. IA'HN'• - nld•.:ncu•n to r11111:•lt' "'•lh •urh rnunant 1h11.lt 1.• •ujl1•f' rut,..1. •nd l.ru~ 1hall not l•f' tiAtde in d•mawH for failure lO C'.tmplr tht1•'""11h : a r.d thie t.,"..,. .. t.:111 1.. "''' "'1di.. t ""hile An•t eu l••h• •• '""'"'""• i • 1·rrv•n tf'd t•r an1 tu.("h cau~ from C'nnd" '"t in • dri.111n• or nwn rk;nw oJt4"r"tl"' • 'n n r trorn ''''·•hu· .r. ~ ui t o r .r11• ff nm th«" lf'l\M'd 11ru11tw1: an,J the tun• •hil• IAHH i• 10 prev.nttd 1haU hot be cuunttd a1•in1t IA11•"· anf\h10,: Ira thi1 k&lll ' __ LO the t '1Ulrarr n1,ta·1lh•tuwlin11. ·- ---, - - --- · .. ,_,_-.,,; , ......... - ··. l ·' 1: I 12. It is mutually agreed, notwith~tanding any other provision . ' herein contained, as follows: . ·-· · (a)__ Should Lessee be prevented from complying with covenants of . this lea~o by reason of conditions or acts set forth in paragraph '11 1 . hereof, then Lessee agrees annually to pay to Lessor an amount equal to the delay rentals herein provided for during such period of pre-· vention, whether same be during or subsequent to the primary term, and such payment shall be made at the end of each year of prevention either to Lessor or to the depository above named for credit to tile account of Lessor. (b) This lease does not ·cover or include any righ~~r privilege of hunting or fishing on any part of the above described land, and Lessee ayrccs with Lessor that neither he nor his assigns.or agents or c~~loyees of his assiqns, will bring firearms or dogs upon the leased premises, and should this provision against hunting and fish- ing be violated by any agents, servants, employees or contractors of Lessee's assigns, any such person so violating same shall have no further right . to enter upon the leased premises, and such person shall be regarded as and shall be a trespasser on the premises of Lessor and be subject to the penalties imposed upon trespassers under the laws of the State of Texas. I (c) It is expressly agreed and understood that after production of oil and gas in commercial quantities is obtained from the leased premises, the minimum annual income to Lessor from payment of rentals, shut-in royalty and royalty on production shall be a sum of :iot lc!;s than 1~o ($2.00) Dollars per acre on the total acreage retained and then covered by this lease, but this provision shall not impair tht:·.1i L!lst.:ir..;!:.1; .1ny .:.1r.h~c · p:-ovi.sion lv:cC?in conc.:iir.~•J, thi •~s not i:-,-=J.u~~ r.l1n·.? C.ll.:.i or:h~: c.~ .. ' : ~ ~. ' .: l:,, ~;i..! !:Ul;J:l~= Jad i:ti :""• .::: .1~ !.; :,:-o·J·..:cnci u1:.~ oil .!:ti ';cl..;, ...a~ £. ·.!~· .. v= .-: ~:· :~~ c ~;.;.:;l1~._:~s iro::i !:!h.: 1·:.::.: .> ,:: i.Ji~ .~ st :ii:c ~ ~ r~'- n 'i~ .:: n t:~ ·.!, ..1~ G. r•! : ;·! : ·:~:i '.. :'.::':..) h!. ,"'..Z:!l(, hi~ f.~it' S ..ir,ci J~ !.i if:-.:.i, 1'! l ~ mi n ..:?!" .ll ::.t Gt:-:~r t h .ln (JI! o:.!. , ;~ : . 1~~ ~~!~~u:- .:i~~ ~i~~r.:il~ t~.:ic ~~1 =a prod~ccd w1ch oil and ~l~, !,:- ; .~ i-: i.i ..~:·~?:~s5ly aq:-~~d t~~:: '<;,?s' ll5 U.:ied h~rai:i inclu~cs <;! .:.;. co~~~n~ac~, aistillat~ a:- anv other aJ~eous subst.Jr.cc or any oth~c oin~ r3l pro~uced with oil .:i n~ q~s, i~cludin; sulphur . (c l The right to pool un~er parac;ra?h '4 • o f this oil, gas anc! n:~e :~l lease sh~ll be limited to lease or leases on land belonqirig c~ ~~'sor herein, or in which Lessor owns an interest in the oil, ga~ ~··· ~r:~ other minerals. - \ I (fl Commencement of operations for drilling of a well for oil or gls to a depth of 5,000 feet or less shall entitle Lessee to· a credit o~ the rentalsmquired under paraqraph '5' hereof only in the ~~dunt of s1,zao.oo, but if operations for drilling are conducted to a depth belcw 5 ,COO feet, such credit shall be increased from $1,280.00 to ~2.560.CO and Lessee shall, by an instrt;111ent to be filed fc~ rcco:d ir: i:.~H? office of the County Cle rk of Webb County, select and describe . u40 contig~ous acres as to which rentals are to .be credited if tho ~~:1 is drilled to a depth of 5,000 feet or less, or select and describe i,i co contiguous acres to, which rentals are to be credited if a w~ll CO i5 drilled bdlow depth ot 5,000 feet, and pay~ent of. delay rentals or ~ ?rocuction of oil, c;as and other minerals is to be required in o=dc r ~ to ~cntinue the lease in force and effect as to the remaining acreage, ~ ~nd su=h payment or production shall elir.tinate requirement to select deres in accord.tnce with above provisions . (gl ht the end of the primary term hereof, Lessee covenants an~ ~q:ees to execute and deliver to Le ssor a written release of any a ~ d ~11 portions or this lease which have not been drilled to a densi: ~ of ~~ least 40 acres for each producing oil well and 640 acres ror each ?r~=~ci~g or shut-in gas well, except that in case any rule a~optoc I by th~ Railroad Cor.unission o f Texas or other regulating autho:it;• ! or any field on this lease provides for a spacing or proration establ i sh• inc; dif:'erent units of acreage per well, then such estanc!o:\.-::ent c: ~.::a .:i::;:il ·.; .:~.: • ..i~ wh ich ti.:::e. Le saee :;hall exec~t:e a cd ci~li«•ar co ~ :o!s:;o: :;aid ~ric~ 0 n ·~~~1se, ral~asinq all porcio::s of the 13&se not t he:: so ~ ~v~ loped. (hl It ls ayre!~ d that where the Lessee hereunder enters into a •;t1?rmi nation lie made a t intervals no greater th.m two ( :.! ) ye."lrs .1part. I ( il 1.1:s:ion.:il property u f l..tii;uu r, V.1')uil l .1i; r-----------~------ .................... .·' ~ nanch Company, r.t.•l., ricc<1Rioncd by°, arising out of, or resulting .from operations by Lessee, his agents, employees or independent contractor!; on the land hereby lca.scd to Lessee. Lessee also agrees, when rcqucs t 1·d in writin.0 6i.o . o 6J.O . O 61i0.0 659.96 640.0 S.1/2 1666 2253 1166 CCSO & RGNC J28 . ]') N.1/2 1666 3142 1166 CCSO & RGNG 328 . 7') 468 2255 236 AB & H 659. 111 467 799 236 AB. & H 61iO.O 1635 1797 17 TC Ry. 6J.O.O .-.- 865 1'438 12/2541 H & GN 640.0 1683 1115 ·1175 CCSD & RGNG 640.0 1691 1267 5446 GC t Sf 640.0 1696 1'418 54'48 CC & SF 640 .0 1695 1268 I 5448 CC & SF 640 . 0 279 (pt_. only) . 1353 3702 CC & SF i.sa. 2 1004 2421 2/105 J . Poltevent 634 . Sll GC & SF 61 J.Oli 0 1692 2419 5li46 M 1693 1269 51i117 CC& SF 640 .0 M 2112 2~20 t 1925 631 B. F. James 627 . 12 tr. 3700 GC & SF ··64o.n ~ 276 .... ·2552 228 ' 2550 I )i.11 CCSD & RGNG - 636 . 93 0 227,, 1133• 1344 CCSD & RGNG 640.0 u::> 988 2593 2/103 J. Po I tevent 637. 10 ~ 98]'\ . 206'1 2/103 J. Poi tevent 64fJ .0 273 ~ - 1141 ·1336 131f9 3700 CCSO & RGNG GC & SF 6'40.0 61i0 . 0 . ~ 275'\ 277* - 1337 3701 CCSD & RGNG 640 . 0 CCSD & RGNG 320.0- • S. 112 .JI, Bh>ck 2 . 25, Block 2 I 043- I Oli2 453 '452 CCSO & RGNG 640.0 (""' E N.1/2 .232 '1 233..... 51, e :ock 2 259 (pt. only) '1955 211+8 1117 1045 1137 1328 1346 13'47 460 1074 4526 CCSO f. RGNG CCSD & RGNG CCSO & RGNG CCSD & RGNC GC t SF 462.70 455 - 9 - • 320.0 600.D 640.0 ""0 -~ ~: ... , '>' . :·· . .. 302 CCSO & RGNG 652. 2; 2057 985 ~· ' 2060 -!pt. only) 3329·30 303 CT f. H 41i0,0 ~ ,,, 303 CT& H 321>. 0 ' ~'"T" .. . E.1/2 · 2059 . 984 . -..,, I I E. I /2 •I 9S3"' 1329 4527 GC& SF 320. 0 - 1627 {pt . only) 1324 li683 GC & SF 160.0 C(j 1• ·' . .1629 irt. only) w.112 ~ 1662 E.1/2 161i8 1275 2230 2441 4682 116'4 1157 GC & Sf CCSO & RGNG CCSO f. RGNG 292 . 6·i . . 329.3'' 325. 7!; ..do: > .. : . ..· : :.-. W.1/2 1648 3301 1157 CCSD & RGNC 325.7~ -· -26, .uock . 2 '~ 452 R. O. Barnsley 640. D. . .-'.'.\ -~~ ~· . 2335 3025 School W. Brown 27 . 3 . ! · ..:. ~-· . . E.1/2 . 19SU'' 2~60 li526 GC & SF 327. )L ....:-. -.... ~. Lessor's warrant? hereunder as to all of Surveys 987, 273, 275, 277 , 26, the E.1/2 .of 1 ~53, E. 1/2 of 1956 ~~ ~ 401 .9 acres out of Survey 233 (all except 5li acres out.of SW corner of said Sur. 233) is ex;Kessly llmlteC: to 1/2 of the executive rights In the oil and gas .rights In · and undcf said l~nds, and as to all of Survey 23 2 is expressly limit~d to 4/5 or the ~xcc utive rl•1ht~ in tht> 9i: .ind gas right s. The ro l lo.ilng p.uere'> of GC&SF Surv,•y '/79. (~I lll ..c.k II ilS per thu E.O.Cli1!l•1ctt Sul.Kllvhlon of n•cord 2 Plat ll··~11 rJ •, 2'1, Wo:bb r .... 111v, rnn t a inl 119 40 .1crc'i , bcln9 1111• NII I/Ii of SE 1/1+· of C:CSD ~ KGNf. S111\i1·y ? '·'I . (6) 1111 of th•: W. }20 .1 crc ' uf S•il,v· ..... 16/9 duccn U {140 ?o,~lnllnt ~ Sii1lon1r1 Co •• llou110~, T,~11 • ·\.. ·• ·~.,ViJi UO Acr.1 Po0ll11r- Pr:ovl1lo11 •. I if• ,. OIL, GAS AND MiitJt'RAL LEASE AMENDING OIL·, GAS AND''ntNERAL_ LEASE DATED JUNE 15, 1974 (AS AMENDED) BJ;TWEEN LESSOR-AND LESSEE HEREIN 26,622.79-acres of land, more or less, situated' in Webb County, Texas more fully described in Exhibit "A11 attaclted···he·reto Bnd made a part Of thiS Lease for all relevant purposes, including limitations upon warranty as specifically set out therei~. """""' For lli• 11urww of cakul.ilnr th• nntaJ 111:rra1nt1.1i•rdn.ti..r pnivl~td for, uld Ind lo utlm11..i 10 coaiprlM .... ?.~_,_6~-~ ..:.?..9 .... ··-··---·-----;--...acr.. ,_ ":h•lll•r It 1dul': ~prlw1 mor• or,, I~•.. . .five t. Svbh•:t to Ill• othr proYhl11111 bu•h1 oontah1.!!, thh' In.. 1h1.ll ~- for & 111111 Gf Wtt 7Uro from. \bit due (olltd "prL'"1r7 tum.-) and ~.J?,- llitnt!i..r .u oil, ,u or oUl_\f" "''"'~I .h.11~11od frolll '"'1 I•. nd or lan.d wl!21_ •IJJcll nld l1nd 11 ~loci b.,oundoc. 'il'>h~eri)i~M! ~ !l..rtgt.J.P~?L.~2-~. t.f-olf~1f~~~-li~not!ib.P'lf4~~.~ Mi .-U-1i=~J!1R~\!1, 1l~t..0Jllrv'°;~.~t ~. 1 · ••II• or "' tlit credit ot Woo~ 111'° Ult p/PtllllH. 10 •1ilc11 t.b1 -.1r. =•r bt unnt-=i..d 1 Lt•-.al ·J..tf.. 111.,. fro.r.a llnit 10 Lime purdl1M .,.,. ror1llr oil Jn Ju P01 ... 11lon, P•rlnr·the"nnrht Prln th1t1for"'11r.hllln ·-tor th• neld •h•ro · roducod on· lb• dcte·ot·pyrchHU (\I) EXHIBIT B-2 _________ Jgl .'b-' '"l· . 0. ...•·'"·M.J . •' ti) J. 1:1 ---------·-·-·---- STATE 01'------------·} TB:LU StNGL& J.CKNOWLEDOM&HT COUNTY OF.-..- - - - - - - - - - - - - pen.ot1all1 1p~1rtd .•. _ _ __ ---------··----------------------------------------- 1tnow11 i.o m1 to 1H th1 Pinon •• whou 11....,L_, _ _ _ ,__..111b1erlti.d l.O U.1 roroio\111 l11rtNm1n\, a11d acllnowlld1td l.O m1 I.hat _.b ..... u.c:u~ th• 111JJ11 for \bt PllrPOltl and aontld.r1Uo11 \bt.rli11 UPrthld, · Olnn undu 1117 hlml and ual of autet, \hll tht-----.d•7 1 1 f - - - - - - · - - . - - - - · - - - · A. !;), 11---· Nota'7 Publll In 1114 tor--------Cou11tr, - - - - - - STATt O F - - . - · - · - - - - - - - - · - · - } TEXAS lOINT ACKNOWU:OCM&HT COUNTY O F - - - · - - - - - - - - Stfort mt, U.t 11nd1nl1ntd, 1 Not&rr Public 111 and for nld Collnt1 and S\1\4, on \.bh du- 1>troonal17 C\011 11ndu in1 b&M and Hal of oUlct, \bl.• \ht..-----d17 ol-- No~U'f P11bllc In .ad for---··-----·-Coinlng ~O acre~, l1~ing the N\.I 1/lf of SE J/l; of CC:SO i RGNG Survl·~· 259. (6) All of the \J, 320 :i.:r~·::. of Survey 1629 d<.•scribi?d and included In O&G Lsc. tu ();1nlel A. Pedrotti dated Sc-j'\.-;:1h1.•r 2~. 1973, a,s amcndi:d. T~OP00121s7:• --~---~-.--- EXlllllT I C1lcul1tlon of toy1lty to bt SNld on t•• d•~l't'•r•d to L••••• or Afftll•t•• far u11 (Ind nn for renltl tn •ccard1nc1 'llth p1r111r1ph 19. 'tlnclp1h '•Y L111or roy1lty bind on th• 11r11t1r of the v1l;ht1d 1v1r1;1 ptlc• peld by th1 thr11 l1r1111t vol\ldtrtc p1Jrcb111ra for th• c1l1nd1r quarter In th• 111t q\llrttr of Vtbb COl.lntY or the v1l11httd 1v1r1;• of the prlc•• us1d by tilt L"•or for roy1L tY pt)'Mnt p1.1rpo11• a 0111 sources rntrVY Pl.nnlnv loot publtc1tlon or 11 r1parud to th• State of t11t11 h1r 11v1r1nc1 tu purpo•••• Utp 1. r1lcul1t1 tht v1l9ht1d 1v1r1111 prtc1 for th• .onth for 11ch of thv thr•• llr11si volumt P'lrch1111 far tit qu1rt1r tr- th• tax r1c:ord1. llMth•Jpnu•ry 19§! Purchn11 fro,. Ca!l!P•ny A Lt••t 1 100,000 z.oo 200,1163 Unit 14 ao,ooo 1.51 120,eoo ?yrehnet frO!!I Cp•p•ny I 291,733 1110,1121 '·" TOTAL Unftltd T1x11 360,tlZI C1lc:ul1t1 613,396 Tren••l••ton Monthly V1l11ht1d Av1r1111 Price 61J,396/l60,t121 • S1.70/MKitu. t1p11t procedure for r11111lnln11 two 11onth1 for thh purch111r ind for re1111tnlnt t110 purch111r1. Step 2. C1lcul1t1 tht v1hht1d 1v1r1111 price of the thr11 t1r;est volu1111trlc purch111r1 for th1 qu1rt1r using JllOnthly v1lun fro• lttp t. Montb•J1ny1ry \9!! Month • Februuv 12aa Hon th ' March l?IU! ?mb.WL VolUM Prlca Extanslon Vo\\nlt Prlc:a Extant Ion Vol~t Price Extension "' .S/HCf • "' S/HCF • "' S/MCF • Unltad TIXll 360,1121 1.70 61J,J96 397, t:SO t.5a 627 ,465 :S20,J06 t.5a 506,0!:S Traru11ls1lon uruor: South Gulf Tot1l1 400,m ill..222 Lil t, 136,044 1.55 620,346 ~ = 350,723 1,!l3,74Z 1 1 047 1 009 1.60 WI. 561, 157 lli.m soo,126 1.55 775,195 :i.!!!...222•'~·'~''---''~"""''~··· 1,673,255 I, 121,432 1,756,158 Sum of Volurau IUll of E11un1!on1 l,304,485 5,263,855 1.59 sup l. C1lcul1t1 wal;htad avar191 prlca U.td by Lat••• to calculatt roy1lty p1y11111nt1 on 111 d1ltv1rtd to L11111 or l1ftlht11 and not for rn1le. Honth•Jaouary 1?!8 Month•February 191111 Hpntb•Mprch 1988 Voh.-1 Pr I ca Extension Voluma Price Extension Vol1o1111e Prlc1 Exunalon "" S/llCf • "' S/HCf • "' $/HCf • 155,000 1.60 248,000 140,000 1.62 Z26,!00 155,000 t.5e 244,900 'II' gt vo1y..., Sypi 9t E11un1ton1 Velghsrd &ysrpgs rcie• 719,700 1.60 IUp 4, CIO'lplra 111l9httd 1v1ra91 price ctlculattd In Sup Z to tha walthtad 1var•t• \111a1 prlc1 c:1lc:ul1tad In •t•p J. Sl.60/HCF 11 1n1t1r than S1,59/KCf ao no addltlon1l roy1lty p1y111ent1 1ra required 1or thh qVlrt1r, VOIU1111 and prlcu u11d In thh u:1111pla tra ua1d for lllunrulon and 111y not b1 rtflactlvt of 1c:tu1l condltlona. THE STATE OF TEXAS § § COUNTY OF WEBB § '-{iL This instrument was acknowledged before me on the q day of January, 1988, by J. 0. WALKER, JR., General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. ~ . µA,. *~o,,°}-- Notary Public in an or The State of Texas. My Co1T111ission Expires 7-3- o 1 Lt:1vR.A BA LLEvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § oY--L This instrument was acknowledged before me on the I day of January, 198B, by E. WALKER QUIROS, General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 9~day of January, 1988, by GENES. WALKER, General Partner of Vaqu111as Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. oar): ub~in and for The State of Texas. My Corrrnission Expires ,_ 7- 3- '1 oq ,l_,11012.A GA usvl Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the CJ~ day of January, 1988, by EVAN B. QUIROS, General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. d.,j,a ~,J(1,,'}- Notary Public in and for The State of Texas. My CDITllliss1on Expires '7-3-J"A LLEN Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § ~ This instrument was acknowledged before me on the '=t day of January, 1988, by E. WALKER QUIROS, Trustee for the Vaquillas Unproven Mineral Trust. ~··~4~~ Notary Pu lie in and for The State of Texas. My Conmission Expires: 7-:3- ?9 .IJA vv 811 LLEvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § n'fL This instrument was acknowledged before me on the -, day of January, 1988, by GENE S. WALKER, Trustee of the Vaquillas Unproven Mineral Trust. ~" 94~'" OOr,,t ~Pub le in and for The State of Texas My Commission Expires: '1-3- J'? l.,,,11uR.A "£5,.,, LlsvJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the day of January, 1988, by EVAN B. QUIROS, Trustee of Vaquillas Unproven Minera 1 Trust. ~ " ~Y - ~ !! ), a, 4-11Q,"9-' Public in and for The State of Texas My Commission Expires: '7-3-11'! lc.u/(A 1J,.,, Lle:vJ Printed/stamped name of Notary. -13- GWB2/dm 130(1) THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the CJ fl--, day of January, 1988, by J. 0. WALKER, JR., Trustee of Vaquillas Proven Mineral Trust. NOtarY ic in and for The State of Texas " My Corranission Expires: 7-3- i?{ LAJ~A 12,,q l..LG vJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § y.LJ the 9 day of January, 1988, by E. Proven Mineral Trust. Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged the 9 ~ day of January, 1988, by GENE S.WALKER, Trust Proven Mineral Trust. otary ub 1c 1n an for The State of Texas My Commission Expires: 7- .3- 'g"f L.4 J)/(A BA LL;;;vJ Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § on the This instrument was acknowledged before me 9 L day of January, 1988, by EVAN B. QUIROS, Trustee of Vaquil 1as Proven Mineral Trust. Notary Public in and for The State of Texas My Commission Expires: 7-3-:>!j 0AuRA S-4 LLev-1 Printed/stamped name of Notary. -14- GWB2/dm 130(1) ·.. ·.. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 'l-J-b day of January, 1988, by l ci c. • .So..el er . Attorney-in-Fact for CONO~ INC., ali aware corporation, on behalf of said corporation. NotlU~in?fk'~ The State of Texas My Commission Expires: 9-!&'· f?g' LJ e.fl«- !/la. r Ke. rt- Printed/stamped name of Notary. -15· GWB2/dm 130(1) ·r...,,.... . ., • • J : Oo oO • •- A "i • itu1d11uu U (1 .. 0 ;. iJ:I UD Acf• l'oollns Pro.-bi..11 • OIL, GAS AND MINERAL LEASE TBIS AGltEEKENT mat. lbb._!~ .. ------·l!&T of. Novemb~L--------·--···--··--·-···11~?._, b.t..._11 Vaguillas RancQSoml?fil}Y.t,_Ltd.; Vaguill~.Y.9.P.roven_Mingal Tn,ist i ...Y!9..'!!.+1.~!..9.Y.~D. _ _2!!!.l~ral_!~ust..;_l!f:.S.'!!!~nd thr.g.H.&h....!~f!....&.fil!.i:nLPJ!t..t.~ ....-h..-Q.,_B!J..lc.er. Jr~·-·---··· -~. Wal~r_gu_!~.l!.i....£~~~!!s~L~M-~<'!!!-Jb.. ...Q.\!ill.~ - . ---·-···-·----··· ;::·~:~ Oii• ~ inon>. • " - add ..... lu- ·- P..!.~O:B-~;1086:-~p Texa! 7B04Ji=~===-====-~ and __G..?.!!~~.£:..z.Y-~-~ox 219L__~o'!~!Q..l!.t._'.t~!!P_-1.1.£?_~-----·--·-·---·• r..-. WITNESS!:THi - 1• t.NoJ- 111 ccmaw...,i.101> ot......!en Do l la r..§..!!E.!!. •.9.~-1!~_99_0_4....rul!LY.~.!..1.@bl t;:_~..QJ!§.!~.E~!!P.!L.--.-- ...»oll&r• 11.J: 0•00 )Jn b.nd paMt. of Lh• roJalU11 bu.In Pf'llYIW, •11d Of U.. &pMmuts ol I.Maw banln toat.IMd, berebr sraa.ta. kuM u.4 J.tt.o u:clual"'1' viii,;'L.'.... tor tb• InUpoM of h1n•Ua1U11s, t:Xpl.orl111', pro.p1atl11s, drUlh•s U>d minlnl' for a11d Pf'Odud.ns oll, I'll 1.1\d all otbar mir.1rals, C011d1Ktlns p;plora~n. noloslc and ctoph111c&I 111rYirJ'I b7 ~a»b, oora Ullo sn.'Pi&;J and 111asn.tlu• -".~:~~· au, watu an.s ~sr t111lda. and air lnto aubnrl1q Hrat.. 1.,.1,... pfoe Un•, bulldf•s ~ 1 lmnita, ~ 1t1Llo11a, te 1. _ nM 111 - . - 1tn1oo hlAI thtr91111 11111. 011, o\'tr •nd uzw1 Ind.I DWlllubllv h~ f.lld for ----°"'"'~· ------ ITATZ 07__ OOVNT?OJ': __} T&XUJOlNT .lCKNOWLU>OlilEHT Nt1tu7 hbllt la -4 tor____ """"'· -----·---- t , II ~ ~ l ~ " ~ 0 ~~ ol l f ~ • ·f .]::: 0, •! 1 l ( I ~ ~ i: la • I, ~ • • fF l I l ~ k ' l ! [ i' i p,. f. 'j t • ~ ; t' r { t i I .' . r,. L" .•. _:.:·. f i • irr r i • J • I i • • ADDENDUM TO OIL AND GAS LEASE From Vaquillas Ranch Co., Ltd. et al To Conoco Inc., Dated November 1, 1987 12. Should Lessee be prevented from complying with covenants of this lease by reason of conditions or acts set forth in Paragraph '11' hereof, then Lessee agrees annually to pay to Lessor an amount equal to the delay rentals herein provided for during such period of prevention, whether same be during or subsequent to the primary term, and such payment shall be made at the end of each year of prevention either to Lessor or to the depository above named for credit to the account of Lessor. 13. This lease does not cover or include any right or privilege of hunting or fishing on any part of the above described land, and Lessee agrees with Lessor that neither he nor his assigns or agents or employees of his assigns, will bring firearms or dogs upon the leased premises, and should this provision against hunting and fishing be violated by any agents, servants, employees or contractors of Lessee 1 s assigns, any such • person so violating same shall have no further right to enter upon the leased prem1 ses, and such person sha 11 be regarded as and sha 11 be a trespasser on the premises of Lessor and be subject to the penalties imposed upon trespassers under the laws of the State of Texas. 14. It is expressly agreed and understood that after production of ., oil and gas in corrmercial quantities is obtained from the leased premises, ~C'I the minimum annual income to Lessor from payment of rentals, shut-in c)1) royalty and royalty on production shall be sum of not less than Two_($2.00) Dollars per acre on the total acreage retained and then covered by this lease, but this provision shall not impair the right and privilege of Lessee, his successors and assigns, to release and surrender any part of the above described leased premises as herein provided. Lessee 1 hfs successors and assigns, shall detennine within 90 days from the expiration of any lease year during which royalties have been paid on actual production the amount of any deficiency, and shall within said 90-day period pay such deficiency to lessor or deposit same to Lessor's credit at GW82/dm 124(7) °"'I JUt 1 4 ~ ....... the depository hereinabove designated. • Default in the payment of such deficiency shall not operate to terminate this lease or any part hereof, but Lessee, his successors and assigns, agrees to personally pay such deficiency to Lessor at Laredo in Webb County, Texas, together with any reasonable cost, including attorney's fees, incurred by Lessor in collecting such deficiency if not paid within the 90-day period hereinabove provided for. 15. Nothwlthstanding any other provision herein contained, this oil, gas and mineral lease is limited to oil, gas and sulphur and minerals produced with oil and gas, and does not include minerals other than oil, gas and sulphur and minerals produced with oil and gas, as Lessor herein excludes from the leasehold estate herein granted, and reserves unto himself, his heirs and assigns, all minerals other than oil, gas and sulphur and mi nera 1s that may be produced with oil and gas, but it is 1 expressly agreed that gas 1 as used herein includes gas, condensate, distillate or any other gaseous substance or any other mineral produced with oil and gas, including sulphur. 16. The right to pool under Paragraph '4' of this oil, gas and minera 1 lease sha 11 be 1imi ted to 1ease or 1eases on 1and belonging to Lessor herein, or in which Lessor owns an interest in the oil, gas and other minera 1s. 17. For the purposes of the annual rental payments due under paragraph 5, Lessor and lessee agree that said payments have been timely paid and received, and that this Lease is perpetuated, without the necessity of further delay rental payments, until. the expiration of the primary term. 18. At the end of the primary tenn hereof, Lessee covenants and L D? agrees to execute and deliver to Lessor a written release of any and all portions of this lease which have not been drilled to a density of at least 40 acres for each producing oil well and 640 acres for each producing or shut-in gas well, except that in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this GWB2/dm 124(7) • • lease provides for a spacing or proration establishing different units of acreage per well, then such established different units shall be held under ~e~se by-su~h production, in lieu of the 40 and 640-acre units above mentioned; provided, however, that if at such date lessee is engaged in drilling or reworking operations the date for the execution and delivery of such release shall be postp~n;d a~d the entire lease shall remain in force so long as operations on said well or wells are prosecuted with reasonable diligence, and if, after the completion or abandonment of any such well ~.): Lessee commences the drilling of an additional well within Ninety (90) days from the comPlet1on or abandonment of the preceding well, or continuously conducts drilling operations in good faith and with reasonable diligence on said lease without any .ces_s.atjon for longer than Ninety (90) days, said lease shall remain in full force and effect during such drilling operations and until the end of Ninety {90) days after the completion or abandonment of the final well, at which time Lessee shall execute and deliver to Lessor said written release, releasing all portions of the lease not then so developed, Each retained unit shall contain at least one (1) well producing or capable of producing oil or gas in paying quantities, and the acreage within a unit shall be contiguous. lf, after the date the partial release called for under this Paragraph 18 talces affect, all production from a retained unit around a well or wells cease to produce oil or gas in commercial or in paying quantities, Lessee shall have one hundred eighty (180) days thereafter within which to commence operations to establish or re-establish production therein in cormnercial or paying quantities, whether such production be from the same wellbore or other wellbore. If such operations result in commercial production, then this 1ease, as it applies to such unit sha 11 continue until such corrmercial or paying production again ceases. However, if such operations do not result in corrmercial production, then Lessee shall have ninety ( 90) days after completion of such operations within which to commence drilling ·-or reworking operations within such unit, and this lease, as it applies to said unit, shall remain in force so long as operations on said well or for drilling or reworking of any additional well therein are prosecuted with no cessation of more than ninety {90} consecutive days, and if they result in the production of 011 or gas therein, so long thereafter GWB2/ dm 124 ( 7) "· ... • as oil or gas is produced from said unit. • As to any unit upon which cornnercial production may periodically terminate, the above right to timely resume operations and continue this lease as to such unit shall be reoccurring right. The stipulation above as to the size of retained tracts around wells shall never be construed as a satisfaction of Lessee's right, duty and obligation to reasonably develop the leasehold held by Conoco or its successors or assigns. After November I, 1990, Lessee agrees to dri 11 such add it i ona 1 we 11 s on the leased premises or such port i ans thereof as may be in force and effect from time to time, as may be necessary to reasonable develop the same for the production of oil and/or gas as a reasonable prudent operator. 19. A portion of paragraph 3 has been deleted and the following Is in lieu thereof. (b) on gas, including casinghead gas or other gaseous substances, produced from said land, the Lessors royalty shall be calculated and paid as follows: a) Sales To Non-Affiliated Third Parties: In the event Lessee enters into a gas sales contract with a non-affiliated third party, Lessor's royalty shall be one-fifth (1/5) of the gross proceeds received by Lessee from the sale of such gas. b) Sales To Related Or Affiliated Entities For Resale: Jn the event Lessee enters into a gas sales contract to sell gas to a related or affiliated entity, then Lessor s royalty shall be 1 computed on the greater of the following: I. One-fifth (1/5) of the gross proceeds received by Lessee or any affiliate or related entity from the sale of such gas to the first non-affiliated entity, or 2. One-fifth (1/5) of the highest price reasonably obtainable for gas by lessee and other producers or operators in the -4- GWB2/dm 124(7) • • east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. 11 In this regard, it is understood that the highest price reasonably obtainable" may be equal to, but is not necessarily, the highest price then being obtained by other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. c) Taking, Selling Or Delivery Of Gas To Lessee Or Its Related Or Affiliated Entities For Use (Not For Resale): In the event Lessee takes gas for its own use, or sells or transfers gas to a related or affiliated entity for use, then Lessor's royalty shall be computed on the greater of the following: !. One-fifth (1/5) of the highest price reasonably obtainable for gas by Lessee and other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity. In this regard, it is understood that the "highest price reasonably obtainable" may be equal to but is not necessarily the highest price then being obtained by other producers or operators in the east one-fourth of Webb County, Texas, who are producing gas of like kind, quality and quantity, or 2. One-fifth (1/5) of the quarterly weighted average of the prices being paid by "purchasers" (as hereinafter defined) in the east one-fourth of Webb County, Texas, who are purchasing gas of like kind and quality. For the purposes of calculating the average price under this Paragraph c2, prices paid shall be those as reported in the Energy Planning Book publication or as reported to the State of -5- GWB2/dm 124(7) • Texas for severence tax purposes. the three largest purchasers • "Purchasers 11 sha 11 mean based on volume of gas purchased for such calendar quarter, in the east one-fourth of Webb County Texas. 1 For an example of the calculation of the quarterly weighted average of such price, see Exhibit Lessor and Lessee shall meet within eleven (11) months after the end of each calander year. At least thirty (30) days prior to such meeting, Lessee should furnish to Lessor a statement or other documentation of the basis upon which royalties accrued to Lessor under the terms of the Lease for the previous calender year. Any additional royalties calculated by Lessee to be due, if any, shall be paid at such meeting. Within one (1) year from delivery of the above referred to statement or other documentation, Lessor shall notify Lessee of any discrepancies. Failure to notify Lessee timely of any discrepancies shall constitute final acceptance of royalty payments as covered by such statements or other documentation. The first period for which Lessee shall prepare such statements or other documentation shall begin on April 1, 1988 and end on December 31, 1988. Nothing in this paragraph shall preclude Lessor from claiming any royalty which Lessor is entitled to as a result of mistake in computation, oversight in computation, or error in computation of royalty or which may result from the subsequent disclosure of a discrepancy. LESSOR'S royalty shall be without deduction for any costs, such as, but not limited to, costs of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting and otherwise making the oil, gas and associated substances ready for sale or use, except for a) severance and related taxes, and b) reasonable transportation expenses which may be necessary to be paid to non-affiliated third parties or entities to get Lessor's gas to a market or point of sale off the leased premises and which sale or sales will result in a net price equal to or r' <. I" I higher than if said gas had been sold at the wellhead. LESSEE may submit a copy of a proposed gas sales contract to Lessor which is acceptable to Lessee and request that Lessor approve same for -6- GW82/dm 124(7) ". - • royalty computation purposes. • Lessor sha 11 have thirty (30) days after receipt of a gas contract to approve same. If Lessor approves same or does not timely decline to do so, then Lessor's royalty on gas sold under such gas sales contract shall be based on the gross proceeds received under said contract. GAS contracts with a term in excess of three (3) years shall contain a provision for price redetermination no later than the end of the 3rd year and subsequent price redeterminations thereafter at intervals no greater than two (2) years apart. 20. Lessee agrees to fill all slu~h pits and level the same when they have ceased to be used and to restore the land to as near 1ts original state as is practicable and to pay for damages to the surface of the land and the improvements, water wells, growing crops and livestock thereon, and to any other personal property of Lessor, Vaquillas Ranch Company, Ltd., occasioned by, arising out of, or resulting from operations by Lessee, his agents, employees or independent contractors on the land hereby leased to Lessee. Lessee also agrees, when requested in writing by Lessor. to divulge to Lessor true and correct information as requested by Lessor as to all drilling, producing and marketing operations conducted under this lease and to furnish to Lessor copies of all electric well logs taken hereunder; provided, however, lessee shall not be obligated to release such information until it has been released to the industry. 21. Lessee hereby agrees to ensure that the two exit gates on F.M. 2895 (Forest Gate and Reynolds Gate) are guarded in an efficient and prudent manner during drilling, reworking or plugging operations and at other times as mutually agreed to by Lessee and Lessor. As to the exit gate on the north side of U.S. Highway 59, Lessee agrees to use its best efforts to work out an arrangement with other exploration companies using such gate to ensure that it is guarded in an efficient and prudent manner during drilling, reworking or plugging operations and other times as mutually agreed to by Lessee and Lessor. Further, Lessee agrees to use its best efforts to work out an arrangement with TransAmerican Natural Gas Corporation or its successors or assigns to ensure that the exit gate -7- GWB2/dm 124(7) • • .... located 9 miles north of Aguilares, Texas, on F.M. 2895 is guarded in an efficient and prudent manner during drilling, reworking or plugging operations and at other times as mutually agreed to by Conoco and Lessor. In regard to gates used by lessee and other exploration companies, Lessee agrees to pay its share of the cost of guarding such gates when such gate guards are required under this agreement. Lessee shall not be obligated to furnish a gate guard on any gate which has been abandoned or is not being used by Lessee. 22. Lessee agrees that before abandoning any well drilled on said ;j'., '0 ':) lease for oil or gas purposes, it will notify the owner or the surface estate in person or by telephone of its intention to do so, and it will allow said owner of the surface estate a reasonable time, not exceeding twenty-four (24) hours thereafter, within which to elect to take over the hole for the purpose of attempting to make and complete a water well. Lessee agrees to consult with such surface owner as to the location of a potential water zone, without any liability or warranty for such consultation. Upon the owner of the surface estate election, within the specified time, to attempt to complete the well as a water well and complying with all rules and regulations of the Railroad Co"'11ission of Texas and applicable statutes, Lessee will, at its expense, set all plugs to just below the designated water sand as may be required by the Railroad Convnission and thereafter deliver the well to said owner of the surface estate, leaving in such well all surface casing and such intennediate casing as may have been run and set to at least the depth of the designated water sand and thereafter the owner of the surface state shall own the well and shall be responsible for all subsequent matters in connection with the well and for compliance with the applicable statutes and regulations of all regulatory agencies having jurisdiction. Lessee shall have no liability to Lessor in connection with any of the operations which may be conducted by the owner of the surface estate who shall thereafter bear all responsibility and liability with respect thereto. It is expressly understood that lessee shall not be required to furnish any additional casing or other equipment for any well plugged back at the request of the owner of the surface estate under this paragraph. Should the owner of the surface estate elect not to attempt to make a producing water well out of -8- GWB2/dm 124(7) .... • any such hole, Lessee shall plug the well in accordance with all applicable rules, regulations and statutes. 23. It is expressly agreed and understood that for the purposes of this lease the following definitions shall apply: 11 Cormnences 11 - A well shall be deemed corranenced on the date which the drilling bit enters the earth for the drilling of a well. 11 Abandoned 11 - A well shall be deemed abandoned on the day when it is finally plugged as a dry hole. 11 Completed 11 - A well shall be deemed completed thirty (30) days after the day the Lessee sets production casing. 24. Lessor and Lessee agree to limit the conrnencement of actual Ao~ drilling during deer hunting season to 1) those wells drilled in areas which would not disturb deer hunting, and 2) offset wells. If Lessee must co1T1J1ence a well during deer hunting season to perpetuate said lease, then Lessor will either a) not object to the drilling of such well during deer hunting season orb) agree to extend the commencement date for such well to a mutually agreeable date after deer hunting season ends. For the purposes of this paragraph "deer hunting season" shall be that period defined by State law. 25. Nothwithstanding anything contained herein to the contrary, the lessor at any time and from time to time, upon not less than ninety {90) days notice to the holder of this lease, may elect to require the payment of any royalties accruing to such royalty owner under this lease to be made in kind; provided that any expenses incident to the exercise of such election shall be borne by Lessor· and such election shall be for periods of not less than twelve (12) months. Lessor shall only be allowed to take in kind when lessee is producing for his own account. In the event of such an election by Lessor, lessee shall cooperate fully with Lessor in allowing Lessor to take their royalty in kind, including permitting lessor to use Lessee 1 s wellhead equipment and, to the extent that Lessee has assignable rights, the use of Lessee's purchaser 1 s transportation facilities in good faith and not to exceed preva i 1 i ng charges for s imi 1ar services in the industry at the time if Lessee or its affiliates are transporting the gas, -9- GWB2/dm 124( 7) • ....... •• but if Lessee has a third party contract for the transport of said gas, Lessor will be bound by said contract. Should Lessee desire to enter into a gas purchase contract having a tenn of more than one (1) year, then (a) Lessee shall include in such contract a provision that allows Lessor to elect to take its gas in kind and be released from such contract one hundred twenty (120) days after notice, or (b) Lessor may approve of such contract in writing, 1n which event, Lessor may elect to take its gas in kind either at the end of such gas contact or'one (1) year after notice to Lessee, whichever happens sooner. Any equipment installed by Lessor necessary to take in kind must be approved by Lessee and maintained according to Lessee 1 s specifications. If Lessee is unable to obtain a more favorable gas contract because of Lessor's reservation of this election to take in kind, then Lessee may elect to give notice of its intention to sign a gas contract acceptable to Lessee and request that Lessor join in signing same, and if Lessor elects to sign same, then Lessor's royalty share of revenue shall be bound by such contract and Lessor may not elect to take its royalty in kind during the term of such gas purchase contract. DATED this 91Jr day of January, 1988. VAQUILLAS RANCH COMPANY, LTD. VAQUILLAS UNPROVEN MINERAL TRUST By: ;&. E. Wa By: By: -10- GWB2/dm 124(7) • • ...... VAQUILLAS PROVEN MINERAL TRUST CONOCO INC. By~~4 rif1 By: -'l.fd:::;:f;fJ5a,.o Ul...2.22 lotllt 1,136,044 1,IJJ,74Z 1,047,009 1,67J,ZS5 1, IZ1,4JZ 1,756,858 SU- of V!!IYIHI Su,. 2f [!ltt"'ton1 V1!9bt1d Av1c991 Prier 1oul• 5,Z6l,155 1,59 Sttp J, C1\c:11l1tt v1l9bttd 1v1r1111 pclc:t 1111d by Ltnt• to c1lc11l1u roy1lty p1y111nu on 1111 dtllvtrtd to Lt11u or 1ftlllnt1 tnd not for r11111, t!opth•Jenyuy 1000 t!ontb•ltbrupy 12AA Montb•H11rcb 12AA Volu.1 Prlc:• E:r.t1ntlon Yolu111 Prlc• h:t1n1ion Yolu.111 Price Extrn1lon "" S/ltCl • "" S/MC, • "" $/lltl 1n,ooo 1.60 241,0DO 1'0,0DO \,62 U6,&00 155,000 1.sa 2U,900 he 2f vgtu.,,.. SUI! gf fxt1n1 Igo• 719,700 1.60 ll•P ' · Cffip•rt 111lthnd 1Y1r1111 prlct c1lcul1t1d In sup z to the vthht•d •v1r191 ~"''' pcl;e ;1Lc:ul1od In :sup J, S1.60/MCr 11 ' ' ' " ' ' Hllfl Sl.50/MCf 10 M 1ddltl2n.1l roy1tty P•Y••l\U lfl r1q.1.lr•d for thh qu1rt1r, llOUt Vol"'-"• UICI prlcu uud In thl1 1x19f!l• 1r1 u11d for l\\uttrnlon and ••Y not b1 r1H1nlvt of 1c:t111I c~hlona, ' .. ' ' . THE STATE OF TEXAS COUNTY OF WEBB • § § § • This instrument was acknowledged before me on the 9y.f-_,day of January, 1988, by J. O. WALKER, JR., General Partner of Vaquillas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership, i-- ~ .. ....';·.· .· ·. ·- ....... ._\.:. " ..•. -·· ·· ......... ~·~ otarY ~600•. s- ~le in and for !~:~ .. ._ The State of Texas. \ : My Coomission Expires .LA (J/?Jj BA LLi::v.J 7- B -'89 ·• '"'· ~ ....... -~. ___ ..... Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 9'1+- day of January, 1988, by E. WALKER QUIROS, General Partner of Vaqu1llas Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. • f • ~)i~aQ_Q,,[Y :...~~"',· • _:':!-. ..,. otal'Yublic in and for § ~i The State of Texas. My Co11111ission Expires '7-:3- o0 9 •, ~A-oJRA ~ LlEW \. -~~·:--..... -· Printed/stamped name of Notary. THE STATE OF TEXAS § § COUNTY OF WEBB § This instrument was acknowledged before me on the 't'ff- day of January, 1988, by GENES. WALKER, General Partner of Vaqui11as Ranch Co., Ltd., A Texas Limited Partnership, on behalf of said partnership. ~~~~,,;)--' NOtarYUbfc in allor The State of Texas. My Co11111ission Expires 7-3-89 LAat.. Y'A-'ert" Printed/Stamped name of Notary. ·15- GWB2/dm 130(1) : I I '330158 I MINERAL DEED 1 STATE OF TEXAS s . . S KNOW ALL MEN BY THESE PR~SENTS1 COUNTIES OF STARR WEBB s . AND ZAPATA THAT VAQUILLAS RANCH CO., LTD., a Texas Limited Partnership, for and in consideration of the sum of Ten Dollars ($10.00}) and other qood and valuable consideration to it in hand paid by the grantees hereinafter named, does hereby BARGAIN, SELL, TRANSFER, ASSIGN and CONVEY unto the following, to-witi J o. WALKER, JR. an und-ivided • r628 interestJ $ JAMES n. WALKER an undivide4 .0853 interest1 NANCY J. WALKER BRICE an undivided .0853 interest1 EVAN B. QUIROS an undivided .0814 interest1 £, WALKER QUIROS an undivided ,0814 interest! EVAN J, QUIROS an undivided .05686 interest; SADIE DIANE GYURKO an undivided .05686 interest1 QUINLAN QUIROS SMITH-SAAB an undivided .05686 interest7 GENE s. WALKER an undivided .1628 interest; GENE s. WALKER, JR. an undivided .042605 interestJ Il ,...'. JAMES PATRICK WALKER an undivided .042605 interest; ELIZABETH WALKER an undivided .042605 interest1 and KATHLEEN WALXER an undivided .042605 interest, I in and to all of·its right, title and interest in and to all of the oil, gas and other minerals in and under the.following land& 100,403.93 acres of land, more or less, commonly known as the VAQUILLAS RANCH, in Webb and Zapata Counties, Texas, said land beinq fully described on Exhibit l which is attached hereto and incorporated herein for all purposes and 102.35 acres of land in Starr County, said land being fully described in Exhibit 2 which is attached hereto and incorporated herein for all purposes. TO HAVE AND TO HOLD the respective interest hereby conveyed unto each of the said 9rantees, his or her heirs and assigns, EXHIBIT forever. This assignment shall be effective as of November 1, 1984 at 7100 A,M, tl. .J.t.:::..... EXECUTED this day of December, 1984, B-4 _________ ~ ~~~ VAQUILLAS ~· ~ '1::.i~ ... ~ ~ ~·= Bya•tf.A KE~, JR., - ~;i • O. W .,., .... - 33 ~co -., 11"' General Pattner ·~ .!IC,_ .... ·-~ . ' " Byt !7) k4t.LQ~ ~ /} General Partn~ ~· Byr €- UJ~ Jl 1btu2 , WALKER QUl S, 1 General Partner ~ . &u,s: I Byt 'U?lf_A-.) GENE S • WALKER, General Partner The mailing address of each ot the grantees isi J. o. Walker, Jr. Quinlin Quiros Smith-Saab · P.O. Box 342· 8308 Wi~ningham Laredo, TX 78040 Houston~ TX 77055 James o. Walker Gene S, Walker 111 Inwood Road P.O. Box S Laredo, TX 78041 Aguilares, TX 78369 Nancy J. Walker Brice Genes. Walker, Jr, P.O. Box 716 P,O, Box 39 Hebbronville, TX 78361 Mirando City, TX 78369 Evan B. Quiros James Patrick Walker· 2102 Galveston P.O. Box 4 Laredo, TX 78040 Aguilares, TX 78369 E. Walker Quiros Eli~abeth Walker 2102 Galveston P.O. Box 5 Laredo, TX 78040 Aguilaree, TX 78369 Evan J. Quiros Kathleen Walker 2105 Galveston Street P.O. Box 5 Laredo, TX 78040 Aguilaree, TX 78369 Sadie Diane Gyurko 2105 Galveston Laredo, TX 78040 STATE OF TEXAS S COUNTY OF _.((,..J,_({_..8'-'fl..__ _ _ _ S This instrument wa(Jaoknowledqed before me on /21! Z>nrmb&r t . ~ ••: . · 1: . STATE OF "TEXAS S COUNTY OF -:W=a.Jrlr=----- S S'l'A'l'E OF TEXAS 5 COUNTY OF -"'ll.)~g/J=(r:.- ____ S ary ~c n an or State of Texas /J.ar.fha U U:l/nrr-' My Commis!3ion Expires; ~.l- 03-Jlcf STATE OF TEXAS s couNTY OF Welde- s ,_-: ,J>Th).JJ instrument waa !cknowledged before J!le on / C\ . /)ece,m hev 19J · · N~f~~and the State of Texas for ~- - -- --... ,, Jl at /.Aa U UJ{orua.f Printed Name of Notuy My Commission Expireiu O[·O~ •,P>' (.0 ·' STATE OF TEXAS s ~ COUNTY OJI' _(l)_IAfr_fr____ S N ry Public n and for the State of Texas ... Q.·'S·) µor !Ao ~· U//lo.rnal Printed Name oNotary My Commiuion Expirea1 QS~oa-11 I 6 - - - - · - · - · - · ·· · S'l'ATE OF TEXAS S COUNTY 01" --.1!..::P::.:e.::.:b:=.ib"------ S r-y-J?u in an or e State of Texas I\' Ua dfta 0 fJ.-!loumf .,.·" C:·'S·) ·'! 7 ------------"------------·---·-- - ----···· ..-·------·1 EXHIBIT 1 To Deed from J, o. Walker, Jr., et al. to J. O. Walke'r , Jr., Evan B. Quiros and Gene s. Walker, Trustees of the Vaquillas Unproven Mineral Trust l00,403.93 acres, more or less, known as The Vaquillas Ranch, and beinq comprised of the followin9 lands in Webb and Zapata Counties, Texas1 SURVE~ t ABSTR ACRES CERT. NAME t 9 10 ~168 477 640.00 646.67 H&GN H&GN I 11 53 640.00 HGNRR 12 400 640.00 P. BENAVIDES 14 447 525 647.15 640.00 HG&N MR. PENA t 16 18 2136 640.00 HG&N iI 24 2134 647 .,.40 CCSD-RGNG I 25 1042 640,"00 CCSD&RGNG 26 2133 .. 640,00 F.R. FEVILLE N/2 31 1043 320.00 CCSD&RGNG S/2 31 1043 320 .00 CCSD&RGNG 32 2682 640.00 C.R. DAVIS 33 1044 640.00 CCSO&RGNOR.R co 0 N/2 S/2 34 34 2186 2605 326.00 335.48 CCSO-RGNG E.N, GASSER ... ....... ... ~ N/2 51 1045 320.00 CCSO-RGNG S/2 51 52 1045 2606 320. 00 • CCSO-RGNG 640.00 E.N. GASSER r- 0) 5.6.~ 1224 157 . 00 A. GARZA 0 57 1211 188.60 D. GAMBOA ~ ..j 67 1834 319 . 71 G.A. TEAL ~ 112 475 643.77 J,H, GIBSON 114 492 648 . 44 J,H. GIBSON 116 472 655.05 J.H. GIBSON 124 2180 643.84 BS&F 125 1'748 598.00 SK&K 125 84 42.00 SK&K W/2 135 1774 320,00 T&NO E/2 135 1774 320.00 T&NO W/2 136 2322 320 , 00 J. JUAREZ E/2 136 2322 320.00 J, JUAREZ 182 490 640,00 CC&FR CO. E/S 197 563 8856,00 J.V , BORREGO W/S 197 209 8856,00 J,V, BORREGO W/V 197 563 320.00 J.V , BORREGO E/V 197 563 160.00 J.v. BORREGO v 197 563 5109.50 J.V . BORREGO p 197 563 1132.00 J.V. BORREGO p 197 563 722. 22 J.V, BORREGO W/2 227 1133 320.00 CCSO,RGNG E/2 227 1133 320.00 CCSD&RGNG - W/2 228 2550 318.47 CCSO,RGNG E/2 228 2550 318.48 CCSDUGNG EXhibit l, Paqe l --- - - . --- ----- .. .. - ·-··- -·-- · .. ·· -· ------ --- --·· .·. ::~?~??;~;~ .~ :.~:-~f:t;:r . --•;•:· :~ :'--- 232 2149 462.70 CCSD&RGNG 232 2148 *184.l* CCSD&RGNG 233 1117 *455.9* CCSD&RGNG 233 1117 *455,9* CCSD&RGNG 233 1117 455.90 CCSD&RGNG 259 1137 600.00 CCSD&RGNG Bkll 259 1137 40.00 CCSD&RGNG 260 2607 640.00 CCSO&RGNG 264 3302 482.30 F.E. PROYOR 265 1142 618.80 CCSD&RGNG 266 2948 154,80 CCSD&RGNG 'W/2 266 2131 318.35 CCSD&RGNG 267 1134 553.60 CCSO&RGNG 267 1134 40,00 CCSD&RGNG 268 2132 605.49 CCSD&RGNG W/2 273 1141 320 .00 CCSD& RGNG E/2 273 1141 320 .00 CCSD&RGNG 274 2551 640 .00 CCSD&RGNG .r · W/2 275 1336 320.00 CCSD& RGNG E/2 275 1336 3 20 .00 CCSD&RGNG 276 2552 640.23 GC&SC 277 1337 640.00 . CCSD&RGNG NE 279 1353 160,00 GC&GF C7l 279' SW ~ 1353 463.65 GC&GF 307 309 474 1908 966.52 425.40 F.M. McKING J.J. WRIGHT .... 335 1424 63,92 H&GN :! W/2 461 E/2 461 1286 1286 335.60 • GC&SF 335.60 GC&Sf' r; 462 464 2104 1715 649.80 731.50 GC&SF HE&WT ~... C> 467 799 640.00 ASli.H .. ~ ~ 468 2255 659.14 GC&SF 469 1474 664.20 HE&WT •;o 2612 663 .50 HE&WT 471 UBS 666,40 ELRR 472 2613 655.20 ELRR 475 972 622.40 C&M -176 3132 650 . 95 S&M 542/2 3131 330.17 AB&M 575 910 648.17 BS&F 576 2473 639.55 RT 590 2599 573.40 GC&SF 593 1484 468. o·o HE&WT 593 1484 40.00 HE&WT 593 1484 107.56 HE&WT 594 2611 666.90 HE&l'IT 595 1189 642.10 ELRR · 596 2610 650.70 ELRR 598 2598 649,30 CCSD&RGNG 603 970 663.50 C&M 604 2181 693.00 C&M N/2 613 422 6 22.84 P . BENAVIDES S/2 613 .422 667.24 MARTHA HALL Exhibit l, Page 2 - - -- ·· I --- --· ··--··- ... ·- --··- -·· -· - . .. -~ · -- -- -- · · · · ··· . :,; ::- ..~,·.· . .. • • 1, • • • ~:.r.·;,:_:.-·..:.:,'· -.. :~.,,,: S/2 1666 2253 328.75 GC&SF "' -~,,... 1683 1115 640 . 00 CCSD&RGNG E 1684 2910 160.00 CCSD&RGNG w 1684 2910 400,00 CCSD&RGNG N 1684 2698 80.00 CCSD&RGNG 1691 1267 640.00 GC&SF 1692 2419 613.04 GC&SF 1693 1269 640.00 CC&SF 1695 1268 640.00 GC&SF 1696 2418 640.00 GC&SF 1838 2187 67.00 P.H. SUTTON 1928 2474 430.27 'l'EX MEX H/2 1953 1329 320.00 GC&SF E/2 1953 1329 320 . 00 GC&SF 1955 1328 640.00 GC&SF 1956 2560 327.34 GC&SF 1987 1809 14 . 82 TEX MEX 1988 2475 8,.P5 TEX MEX 2057 985 652.'25 CCSD&RGNG 2058 2880 .. 652.25 CT&MC W/2 2059 98 4 320.00 C&MRR E/2 2059 984 320.00 2060 3'110 200.00 C&MRR C&MCRR _. -t 2060 2060 3329 2941 160.00 80 . 00 CT&MCRR CT&MCRR ...... ... 2060 3332 120.00 CT&MCRR ~ 2060 3331 80.00 s. SYNDER r-... 2112 2420 672 .12 • B.A. JAMES O:> 2267 1888 53.30 A. WARD 0 2335 3025 27.30 w. BROWN ~ N/2 2336 Sf7~ 336 3167 14.00 w . BROWN <:;) > 2342 3167 16.30 w. BROWN 3335 14.74 FROS'l' BANK 2367 3333 91.34 F.R. FEVILLE 52/53 P/80 *52,35• JO DeLaGARZA TOTAL 100403.93 1 ' .! Exhibit 1, Page 4 .· . : :I l ..·. ---- -~·---- - -. 'i I I .,.. . " "'";" J EXHIBIT 2 DEED FROM J. O. WALKER, JR., ET AL TO J . O. WALKER, JR., EVAN B. QUIROS AND GENE S. WALKER, 1RUSTEES OF THE VAQUILLAS UNPROVEN MINERAL TRUST 102.35 Acres, more or leas, being comprised of the following land in Starr County, Texas1 Share No. 52 out of ~orcion 7No . 80 aa allocated to A~ L. Shawl by Decree of the Diatrict Court of Starr County, Texas, in Cause No. 941, recorded in Volume G, paq• 205, of t.he Deed Records of Starr County, Texas. _________ B-6 I EXHIBIT MINERAL DEED State of Texas § § Know All Men By These Presents: Counties of Webb, Zapata and Starr § That, the undersigned TRUSTEES OF THE v AQUILLAS UNPROVEN MINERALS TRUST' for and in consideration of the sum of TEN AND No/100 DOLLARS ($10.00) and other good and valuable consideration to the undersigned paid by the Grantee herein named, the receipt of which is hereby acknowledged, have GRANTED, SOLD AND CONVEYED, and by these presents DO GRANT, SELL-AND CONVEY unto vAQUILLAS UNPROVEN MINERALS, LTD.' a Texas limited partnership, all of the following described real property in Webb, Zapata, and Starr Counties, Texas, to wit: All of the right, title and interest owned by v AQUILLAS UNPROVEN MINERALS TRUST in and to all of the oil, gas and other minerals in and under the following land: 100,403.93 acres, more or less, commonly known as the Vaquillas Ranch in Webb and Zapata Counties, Texas, said land being fully described on Exhibit A which is attached hereto and incorporated herein for an purposes and 102.35 acres, more or less, in Starr County, Texas, said land being fully described as Exhibit B which is incorporated herein for all purposes. This conveyance is made and accepted subject to all matters, conditions, restrictions, and reservations, if any, relating-to the above described property which are recorded or apparent on said property, but only to the extent that the same are still in force and effect. To HAVE AND To HOLD the above described mineral interests, together with all and singular the rights and appurtenances thereto in anywise belonging unto the said Grantee, its successors and as~igns forever; and Granters do hereby bind themselves, their successors and assigns to WARRANT AND FOREVER DEFEND, all and singular, the said premises unto the said Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof. EXECUTED to be effective the 31st day of December, 1996. V AQUJLLAS UNPROVEN MINERALS TRUST By: ~£~ Gene S. Walker, Trustee By: u • on tcu &YUH, P/ITI'-SON 8 AYCOC:l A RQUS.$1~\. COl.POIAllON 112 lASt ttCAH !TlkUt SIJIU U00 \.\N ANTONIO. nSAl 78'1Cle .... .. - By: Grantees' Address: Vaquillas Unproven Minerals, Ltd. 5810 San Bernardo Avenue, Suite 490 Laredo, Tuxas 78041 STATBOFTEXAS § § COUNTY OF WEBB, ZAPAT~ AND STARR § THIS INSTRUMENT WAS ACKNOWLEDGED before me on the J:!!!.. by GENE S. WAl.KER, 1hlstee of the Vaquillas Unproven Minerals Trust. day of January, 1997' Printed or Stamped Name of Notary, with Date of Commission Expiration -2- STATE OF TEXAS § § COUNTY OF WEBB, ZAPATA AND STARR § THIS INSTRUMENT WAS ACKNOWLEDGED before me on the 1111 day of January, 1997, by JAMES D. WALKER, Trustee of the Vaquillas Unproven Minerals Trust. Printed or Stamped Name of Notary, with Date of Commission Expiration STATE OF TEXAS § § COUNTY OF WEBB, ZAPATA-AND STARR § THIS INSTRUMENT WAS ACKNOWLEDGED before me on the ;111i day of January; 1997, by EVAN I. QUIROS 1 Trustee of the Vaquillas Unproven Minerals Trust. Printed or Stamped Name of Notary, with Date of Commission Expiration -3- 100,403.93 acres, more or less, known as The Vaquillas Ranch, , and being comprised of the following lands in Webb and Zapata Counties, Texas: SURVEY i ABS TR ACRES CERT. NAME 9 3168 640.00 H&GN 10 477 646.67 H&GN 11 53 640.00 HGNRR 12 400 640.00 P. BENAVIDES 14 447 647.15 HG&N 16 525 640.00 MR. PENA 18 2136 640.00 HG&N 24 2134 647.40 CCSD-RGNG 25 1042 640.00 CCSD&RGNG 26 ·2133 640.00 F.R. FEVILLE N/2 31 1043 320.00 CCSD&RGNG S/2 31 1043 320.00 CCSD&RGNG 32 2682 640.00 C.R. DAVIS 33 1044 640.00 CCSD&RGNORR ~ N/2 34 2186 326.00 CCSD-RGNG -2 S/2 34 2605 335.48 E.N. GASSER ~ N/2 51 1045 320.00 CCSD-RGNG S/2 51 1045 320.00 · CCSD-RGNG 52 2606 640.00 E.N. GASSER -2 56 1224 157.00 A. GARZA ....... ~ 57 1211 188.60 D. GAMBOA 67 1834 319.71 G.A. TEAL 112 475 643.77 J.H. GIBSON 114 492 648.44 J.H. GIBSON 116 472 655.05 J.H. GIBSON 124 2180 643.84 BS&F / 125 1749 598.00 SK&K 125 84 42.00 SK&K W/2 135 1774 320.00 T&NO E/2 135 1774 320.00 T&NO W/2 136 2322 320.00 J. JUAREZ E/2 136 2322 320.00 J. JUAREZ 182 490 640.0.0 CC&FR CO. E/S 197 563 8856.00 J. V. BORREGO W/S 197 209 8856.00 J.V. BORREGO W/V 197 563 320.00 J.V. BORREGO E/V 197 563 160.00 J.V. BORREGO v 197 563 5109.50 J.V. BORREGO p 197 563 1132. 00 J.V. BORREGO p 197 563 722.22 J.V. BORREGO W/2 227 1133 320.00 CCSO&RGNG E/2 227 1133 320.00 CCSD&RGNG W/2 228 2550 318.47 CCSD&RGNG E/2 228 2550 318.48 CCSD&RGNG Exhibit "A" Page 1of4 232 2148 462.7'o CCSD&RGNG 232 2148 *184.l* CCSD&RGNG 233 1117 *455.9* CCSD&RGNG 233 1117 *455.9* CCSD&RGNG 233 1117 455.90 CCSD&RGNG 259 1137 600.00 CCSD&RGNG Bkll 259 1137 40.00 CCSD&RGNG 260 2607 640.00 CCSD&RGNG 264 3302 482.30 F.E. PROYOR 265 1142 618.80 CCSD&RGNG 266 2948 154.80 CCSD&RGNG W/2 266 267 2131 318.35 CCSD&RGNG I 267 1134 1134 553.60 40.00 CCSD&RGNG CCSD&RGNG l 268 W/2 273 2132 1141 605.49 320.00 CCSD&RGNG CCSD&RGNG I E/2 273 274 1141 2551 320 . 00 640.00 CCSD&RGNG CCSD&RGNG l W/2 275 E./2 275 1336 1336 320.00 320.00 CCSD&RGNG CCSD&RGNG I 276 2552 640 . 23 GC&SC 277 1337 640.00 CCSD&RGNG NE 279 1353 160.00 GC&GF SW 279 1353 463.65 GC&GF ~ 307 474 966.52 F.M. McKING -.l 309 1908 425.40 J.J. WRIGHT ~ 335 1424 63.92 H&GN W/2 461 1286 335.60 • GC&SF E/2 461 1286 335.60 GC&SF -.1 462 2104 649.80 GC&SF r- 464 1715 731.50 HE&WT t.11 467 799 640.00 AB&N 468 2 2 55 659.14 GC&SF 469 1474 664.20 HE&WT 470 2612 663.50 HE&WT 471 1188 666.40 ELRR 472 2613 655.20 ELRR 475 9 72 6 2 2.40 C&M 476 3132 650.95 S&M 542/2 3131 330.17 AB&M 575 910 648.17 BS&F 5 76 2473 639.55 RT 590 2599 573.40 GC&SF 59 3 1484 4 68. o·o HE&WT 593 1484 40.00 HE&WT 593 1484 107.56 HE&WT 594 2611 666.90 HE&WT 5 95 1189 642.10 ELRR 596 2610 650.70 ELRR 598 2598 II 649.30 CCSD&RGNG 603 97 0 663.50 C&M 604 2181 693.00 C&M N/2 613 42 2 622.84 P. BENAVIDES S/2 613 422 667.24 MARTHA HA~L ; ! Exhibit "A" Page2of4 I ! ' l I ! I I I 733 1276 639.~0 GC&SF I I N/2 734 1276 348.00 GC&SF I S/2 734 735 2901 1322 352.00 238.60 GC&SF GC&SF . I 736 2233 642.00 GC&SF 744 2595 639.84 GC&SFR CO. I 770 770 1959 1959 893.40 320.00 T.F. PICKETT T.F. PICKETT I 781 1361 211. 50 GS&SF I 782 865 2997 1438 209.30 640.00 R. PENA H&GN I W/2 E/2 987 987 2061 2061 320 .00 320.00 J. POITEVENT J. PO!TEVENT I W/2 E/2 988 988 2593 2593 318.50 J. POITEVENT I 318.50 .J. POITEVENT 1004 2421 634.58 P.B. REYNOLDS 1011 1846 640.00 CCSD&RGNG 1012 2489 *40.00* S.V. VELA 1012 2489 640.00 S.V. VELA 1113 1407 79.99 E.H. 1172 1405 160.00 B. HERRERA 1184 1673 160.00 R. ROYAL 1194 3·207 682.30 GC&SF W/2 1627 1324 320.00 GC&SF ~ W/E 1627 1324 160.00 GC&SF -.:! E/E 1627 1324 160.00 GC&SF >--- W/2 1629 1275 306.32 GC&SF E/ '2 1629 1275 306.33 · GC&SF 1630 2254 621.00 GC&SF -.:! W/2 1631 1317 320.00 GC&SF ~ ~2 1631 1317 320.00 O':> GC&SF 1632 2140 92.00 GC&SF 1633 1323 640.00 GC&SF 1634 2252 640.00 GC&SF 1635 1797 548.00 TCRR 1643 1162 104.79 JOSEFA CUELLAR 1635 1797 *92.00* TCRR N/2 1645 1111 320.00 CCSD&RGNG S/2 1645 1111 320.00 CCSO&RGNG 1646 2396 640.00 CCSD&RGt-:G W/2 1647 1101 320.00 CCSD&RGNG E/2 1647 1101 320.00 CCSD&RGNG W/2 1648 3301 325.75 DA&FA E/2 1648 3301 325 .75 CCSD&RGNG 1649 1110 640.00 CCSD&RGNG 1650 2444 609 . 95 C.M . SAMY ER 1651 1112 640.00 CCSD&RGNG 1652 2876 640.00 W.H. TAYLOR W/2 1661 1662 1122 2230 640.00 329 .31 CCSD&RGNG R.E. PARR ! ~l E/2 1662 3094 320.00 A.F. CARROLL ! 1663 1123 640.00 CCSD&RGNG ~ 1665 1124 640.00 CCSD&RGNG N/2 1666 3142 328.79 CCSD&RGNG Exhibit "A" t Page 3 of 4 I t S/2 1666 2253 328.75 GC&SF 1683 1115 640.00 CCSD&RGNG E 1684 2910 160.00 CCSD&RGNG w 1684 2910 400.00 CCSD&RGNG N 1684 2698 80.00 CCSD&RGNG 1691 1267 640.00 GC&SF 1692 2419 613.04 GC&SF 1693 1269 640.00 CC&SF 1695 1268 640.00 GC&SF 1696 2418 640.00 GC&SF 1838 2187 67.00 P.H. SUTTON 1928 2474 430.27 TEX MEX W/2 1953 1329 320.00 GC&SF E/2 1953 1329 320.00 GC&SF 1955 1328 640.00 GC&SF 1956 2560 327.34 GC&SF 1987 1809 14.82 TEX MEX 1988 2475 8.05 TEX MEX 2057 985 652.25 CCSD&RGNG 2058 2880 652.25 CT&MC W/2 2059 984 320.00 C&MRR E/2 2059 984 320.00 C&MRR 2060 3210 200.00 C&MCRR ~ 2060 3329 160.00 CT&MCRR -.:z 2060 2941 80.00 CT&MCRR ~ 2060 3332 120.00 CT&MCRR 2060 3331 80.00 S. SYNDER 2112 2420 672.12 • B .A. JAMES -.:z ~ 2267 1888 53.30 A. WARD -:i 2335 3025 27.30 W. BROWN ""tr/2 2336 3167 14.00 W. BROWN S/2 2336 3167 16.30 W. BROWN 2342 3335 14.74 FROST BANK 2367 3333 91. 34 F.R. FEV!LLE 52/53 P/80 *52.35* JO DeLaGARZA TOTAL 100403.93 Exhibit "A" Page 4 of 4 102.35 Acres, more or less, being comprised of the following land in Starr County, Texas: Share No. 52 out of Porcion No. 80 as allocated to A. L. Shawl by Decree of the District Court of Starr County, Texas, in Cause No. 941, recorded in Volume G, page 205, of the Deed Records of Starr County, Texas. :_ .. \ I <:' Exhibit "B" Page 1of1 Tab 4 VAQUlLLAS UNPROVEN MINERALS, § LTD, § Plaintiff, § § v. § WEBB COUNTY, TE ~t-DlClAL DIS § CONOCOPHILLIPS COMP ANY, § Defendant PLAINTIFF'S ORCGINAL PETITION TO THE HONORABLE JUDGE OF SAID COURT: Vaquillas Unproven Minerals, Ltd. ("Vaquillas"), Plaintiff, complains of ConocoPhillips Company ("Conoco"), Defendant, and respectfully shows: I. DISCOVERY CONTROL PLAN l. Plaintiff affirmatively pleads that discovery should be conducted in accordance with Texas Rule of Civil Procedure 190.4 (Level 3). II. PARTIES 2. PlaintiffVaquillas is a Texas Limited Partnership with its principal place of business in Laredo, Webb County, Texas. 3. Defendant Conoco is a Delaware Corporation with its principal place of business in Houston, Texas. It may be served through its registered agent: United States Corporation Company, 211 E. 7th Street, Suite 620, Austin, Texas 78701-3218. Service of process is requested at this time. PLAINTIFF'S ORIGINAL PETJ1'10N Page I III. JURISDICTION AND VENUE 4. The District Courts of the Stale of Texas have jurisdiction over these claims and these parties. Conoco's principal offices are in Houston, Texas, and its Texas oil and gas operations are the subject of this cause. 5. This suit involves a dispute over two oil and gas leases which relate to real property in Webb County, Texas. Venue is therefore proper (and mandatory) in Webb County, Texas, under Sections 15.002(a) (1) and 15.011 of the Texas Civil Practice & Remedies Code. IV. RELIEF SOUGHT 6. Vaquillas seeks a release of acreage previously the subject of an oil and gas lease, specific performance, and monetary relief over $1,000,000. v. FACTS 7. Conoco has violated a covenant and agreement between the parties by refusing to execute and deliver to Vaquillas a written release of the portions of certain leased property that reverted to Vaquillas as a matter of law. 8. The following properties (the "Subject Property") are the subject of this lawsuit: 26,622.79 acres of land, more or less, situated in Webb County, Texas more fully described in the Oil, Gas and Mineral Lease dated June 15, 1974 (as amended) between Vaquillas Ranch Company, Ltd. et al., as Lessor, and Conoco Inc., as Lessee, a copy of which is recorded in Volume 460, Pages PLAINTIFF'S ORIGINAL PETITION Page2 324-330 of the Webb County Deed Records (hereinafter the "26,622.79 acre lease"); and 6,740 acres of land, more or less, situated in Webb County, Texas more fully described in the Oil, Gas and Mineral Lease, dated effective November I, 1987, and entered into by and between Vaquillas Ranch Company, Ltd., Vaquillas Unproven Mineral Trust, and Vaquillas Proven Mineral Trust, as Lessor, and Conoco Inc., as Lessee, a Memorandum of which is recorded in Volume 1303, Pages 886 et seq. of the Webb County Real Property Records (hereinafter the "6, 740 acre lease"). 9. Plaintiff Vaqui!las is successor-in-interest to the Lessor(s) with respect to both oil and gas leases described above. Defendant Conoco is the successor-in-interest to the Lessee(s) with respect to both oil and gas leases described above. 10. Both leases described in Paragraph 8 above have been amended and supplemented a number of times. On or about November 1, 1987, both the 26,622.79 acre lease and the 6, 740 acre lease were amended to include a Paragraph 18, which allows Conoco to postpone execution and delivery to Lessor of a written release of the portions of the lease not drilled to the required density by engaging in a continuous drilling program. In order to be engaged in a continuous drilling program, Conoco must commence the drilling of a new well within 90 days after the completion of each well. At the end of the continuous drilling program (i.e. when Conoco ceases to commence the drilling of new wells within the 90 day period(s)), Conoco is allowed to maintain its leases of the Subject Property onlv as to an amount of acreage surrounding each well it drilled. Both leases require Conoco to execute and deliver to Vaquillas a written release of any acreage not earned by drilling operations. PLAIN71FF'S ORIGINAL PETITION Page 3 , l l. Under Paragraph 18 of both oil and gas leases, un-earned acreage reverted to Vaquillas 90 days after Conoco ceased drilling wells under the continuous drilling clause. In this case, that date occurred no later than June 3 0, 2012 ("Release Date"). 111is is the date ninety days after Conoco's Vaquillas Ranch A-7 No. 249 Well was completed. On information and belief, Conoco's Vaquillas Ranch A-7 No. 249 Well was the last well it drilled on the Subject Property. 12. Conoco takes the position that it is not obligated to release any acreage back to Vaquillas, as it claims to have earned 40 acres per oil well and 640 acres per gas well. Conoco's position is not correct as to gas wells because it disregards an important provision of both leases. 13. Paragraph 18 of both leases controls how much acreage surrounding each well Conoco is allowed to retain. Paragraph 18 states that if the Railroad Commission of Texas adopts a rule for the field that provides for a spacing establishing units of acreage per well different than 40 acres for oil wells or 640 acres for gas wells, Conoco may retain only the acreage provided by the units established by virtue of the spacing provided by the Commission's rule: ... Lessee covenants and agrees to execute and deliver to Lessor a written release of any and al I portions of this lease which have not been drilled to a density of at least 40 acres for each producing oil well and 640 acres for each producing or shut-in gas well, except that in case any rule adopted by the Railroad Commission of Texas or other regulating authority for any field on this lease provides for a spacing or proration establishing different units of acreage per well, then such established different units shall be held under this lease by such production, in lieu of the 40 and 640-acre units above mentioned. (Emphasis supplied). PLAINTIFF'S ORIGINAL PETITION Page4 14. After the November I, 1987 alllendment to the two leases, the Railroad Commission did adopt a rule for the Vaquillas Ranch (Lobo Cons.) Field that provided for spacing that established 40 acre units of acreage for each gas well rather than 640 acres. Therefore, Conoco is not allowed to retain more than 40 acres for each of the gas wells it drilled on the Subject Property. The acreage to be released will hereafter be referred to as the "Reverted Minerals." 15. Without waiver of its right to do so at a later time and 1·etaining all of its rights under the two leases in question, Vaquillas does not challenge by this cause Conoco's rights or interest in the weils it drilled on the Subject Property and producing in paying quantities at the Release Date. VI. CAUSES OF ACTION 16. The foregoing Paragraphs 1 to 15, which are incorporated by reference herein as ifrecited verbatim, support the following causes of action and claims: 17. Breach of Contract: At the Release Date, the Reverted Minerals automatically reverted to Vaquillas. Conoco was required to provide Vaquillas with a fully executed and recordable release of Reverted Minerals under the 26,622. 79 acre lease and the 6, 740 acre lease, but Conoco has failed and refused to provide Vaquillas with this formal release. Vaquillas has suffered direct and foreseeable indirect or consequential damages from these breaches of contract in excess of the minimum jurisdictional amount. PLAINTIFF'S ORIGINAL PETITION Page 5 l 8. Specific Performance: Conoco has failed to provide Vaquillas with a formal release of acreage as provided for in the leases. Conoco should be ordered to specifically perform this obligation to provide to Vaquillas such release of the Reverted Minerals. 19. Alternatively, Removal of Cloud and Action to Quiet Title: As is set out above, the 26,622.79 acre lease and the 6,740 acre lease terminated as of the Release Date as to the Reverted Minerals. Vaquillas would show that after making the oil and gas leases of the Subject Property it was the owner of the reversionary interest in the mineral estate in the Subject Property. On the Release Date, the mineral interest in the Reve1ied Minerals reverted to Vaquillas. By Conoco's refusal to provide the required written release of the Reve11ed Minerals, the two oil and gas leases constitute a cloud on Vaquillas' title to the Reverted Minerals, forcing Vaquillas to seek judicial confirmation of Vaquillas' interest in the Reverted Minerals and judgment quieting title to the Reverting Minerals in Vaquillas. 20. Attorneys' Fees: As set out above, Conoco has breached (and continues to breach) its obligation under the 26,622.79 acre lease and the 6,740 acre lease to execute and deliver to Vaquillas a written release of all portions of the Subject Property it did not earn through continuous drilling. Vaquillas' claims have been presented to Conoco and Conoco has failed to release the acreage in question within 30 days after presentment. Accordingly, Vaquillas is entitled to its reasonable and necessary attorneys' fees with respect to this action. TEX. CJV. PRAC. & REM. CODE §38.001. PLAINTIFF'S OIUGINAL PETITION Page6 21. Conditions Precedent: All conditions precedent to the bringing of these claims has been performed or has occurred. VII. REQUEST FOR DISCLOSURES 22. Pursuant to Texas Rule of Civil Procedure 194, Plaintiff request that Defendant disclose within 50 days of the service of this request the information and material required by Rule 194.2. PRAYER 23. For these reasons, Plaintiff Vaquillas Unproven Minerals, Ltd. asks for judgment against Defendant ConocoPhillips Company for the following: L judgment ordering Conoco to execute a written release of the Reverted Minerals; JJ. damages, both direct and indirect or consequential in excess of the minimum jurisdictional amount; iii. judgment that the oil and gas leases in question have terminated as to all acreage described in such leases except 40 acres around the well bore of each gas well drilled by Conoco; iv. reasonable and necessary attorneys' fees; v. prejudgment interest as provided by law; vi. post-judgment interest as provided by law; vii. costs of suit; and viil. all other relief to which Plain ti ff deems itself entitled. PLAINTIFF'S ORIGINAL PETITION Page 7 HAYS & OVlENS L.L.P. Gregg Owens, SBN 15383500 gregg.mvens@haysowens.com Robe11 G. Hargrove, SBN 24032391 rob.hargrove@haysowens.com 807 Brazos Street, Suite 500 Austin, Texas 7870 I (512) 472-3993 (512) 472-3883 Facsimile Raul Leal Incorporated Attn: Raul Leal, SBN 24032657 rleal@rl-lawfirm.com 5810 San Bernardo, Suite 390 Laredo, Texas 7804 I (956) 727-0039 - Phone (956) 727-0369 -Fax Michael Jung, SBN 11054600 Strasburger & Price, LLP 90 l Main Street, Suite 4400 Dallas, TX 75202-3794 (214) 651-4724-Phone (214) 651 4330 fax ATTORNEYS FOR VAQUILLAS UNPROVEN MINERALS, LTD. PLAINTIFF'S ORJGINAL PETITION Page8