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2007-137s'\our dacumenis\ordinances\07\cross timbers-endeavor eneryry.dce - ORDINANCE NO. Q~OO7 ~~ AN ORDINANCE AUTHORIZING THE CTTY MANAGER TO EXECUTE A OIL AND GAS LEASE WITH ENDEAVOR ENERGY FOR 19.45 ACRES OF CROSS TIMBERS PARK SITUATED IN THEN. BRITTON SURVEY, ABSTRACT NO.51, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS, AND RELATED DOCUMENTS; PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton has heretofore determined that it is advisable to lease, for oil and gas purposes, certain real property located at Cross Timbers Park, Denton, Texas; and WHEREAS, the City desires to authorize the City Manager to execute the lease with ` Endeavor Energy for an oil and gas lease; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Incorporation of Preamble. The above and foregoing preamble is incorporated into the body of this Ordinance as if copied herein in its entirety. SECTTON 2. The City Manager or his designee is hereby authorized to execute an oil and gas lease agreement between the City ofDenton and Endeavor Energy, and related documents, which are attached hereto and incorporated herein by reference. SECTION 3. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by %- aCourt ofcompetentjurisdiction, such holding shall not affect the validity ofthe remaining portions ' of this Ordinance, and the City Council hereby declares it would have passed such remaining , portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. ' SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ay of , 2007. ~ . ~~~.~ PERRY R. McNEILL, MAYOR r ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~ APPRO D AS O LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Page 2 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOA'ING INFOR- MATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THF, PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. OIL AND GAS LEASE This Oil and Gas Lease (this "Lease's is made on 3 , 2007 between Tim: Crrr Oa DErrroly, TExas (hereafter called "Lessor,' whether one or more), whose address is 215 E. McKinney St, Denton, Te=as 76201 and ENDEAVOR ENERGY RESOIIRCES, L.P., whose address is 110 N. Marienfeld Suite 200, Midland, Te=as 79702 (hereafter called "Lessee"). 1. Grant In consideration of One Thousand and no/100s dollars ($1000.00) per mineral acre and other good and valuable consideration in hand paid, Lessor grants and leases exclusively unto Lessee the following described land (the "Land") in Denton County, Texas, for the sole purpose of exploring under, drilling under, and to produce, save, treat, process, store, and transport oil and gas and other products manufactured from oil and gas produced from the Land: 19.4 Acres as more particulazly described on Exhibit "A" attached hereto and made part hereof. 2. Primary Term. This Lease is for a term of one (11 rear from this date (called "Primary Term") and as long thereafter as oil or gas is produced from the Land in paying quantities. 3. Surface Use Probibited/Protection of Public Lands. There is hereby excepted and reserved to LESSOR the full use of the land covered hereby and all rights with respect to the surface and subsurface thereof for any and all purposes and all miner- als except those expressly leased herein and only to the extent herein leased to LESSEE. LESSOR reserves and excepts from this Lease all of the surface of the land described in pazagraph 1, and LESSEE agrees that it will not conduct drilling operations or any other operations or activities of any nature on the surface of such Land. Lessee its agents, con- tractors, heirs, successors or assigns shall have no rights of ingress or egress upon the sur- face of the Land and herein waives any rights to any implied easement to use the surface of the Land. Unless this Lease specifically provides for the conduct of seismic opera- tions, Lessee is prohibited from using the surface of the Land for any purpose, but Lessee may engage in directional or horizontal drilling activities beneath the Land that are con- ducted on the surface of other lands. Any directional or horizontal drilling must penetrate the Land sufficiently below the surface as to not interfere with the present or future use of the surface of the Land for public pazk use, and in no event may the directional or hori- zontal drilling penetrate the Land less than 200 feet below the surface. A directional or horizontal well drilled under this provision shall be considered to be located on the Land. Page 1 of 13- OaMroGesLeesE (City of Dentoo/Cross Timber Park Lease)[swh;022707] s:bur docuroeofs~conUnctx~D'Moss timbers park lease I Ijm07 (fmal).doc Lessee's surface locations for wells affecting this Lease shall not enter the surface within 500 feet of the Land. 4. Minerals Covered. This Lease covers only oil and gas. The term "oil and gas" means oil, gas, and other liquid and gaseous hydrocarbons produced through a well bore. 5. Royalty. (a) As royalties, Lessee agrees: (1) To deliver free of cost to Lessor at the wells or to the credit of Lessor at the pipeline to which the wells may be connected, twenty five percent 25% (the "Royalty Percentage") of all oil and other liquid hydrocazbons produced and saved from the Land. At Lessor's option, which may be exercised from time to time, Lessee shall pay to Lessor the same part of the mazket value at the well of oil and other liquid hydrocarbons of like grade and gravity prevailing on the day the oil and other hydrocar- bons are run from the Lease in the general area in which the Land is located. (2) To pay to Lessor: (i) On gas produced from the Land and sold by Lessee or used on or off the Land and to which the following subparagraphs (ii) and (iii) do not apply, the Royalty Percentage of the market value at the point of sale, use, or other disposition. (ii) On gas produced from the Land that is processed in a processing plant in which Lessee or an affiliate of Lessee has a direct or indirect interest, the higher of the Royalty Percentage of the mazket value of the gas at the inlet to the processing plant, or the Royalty Percentage of the mazket value of all processed liquids saved from the gas at the plant plus the Royalty Percentage of the mar- ket value of all residue gas at the point of sale, use, or other disposition. (iii) On gas produced from the Land that is processed in facilities other than a processing plant in which Lessee or an affiliate of Les- see has a direct or indirect interest, the Royalty Percentage of the mazket value at the plant of all processed liquids credited to the account of Lessee and attributable to the gas plus the Royalty Percentage of the market value of all residue gas at the point of sale, use, or other disposition. (b) If gas produced from the -Land is sold by Lessee pursuant to an arms-length contract with a purchaser that is not an affiliate of Lessee, and for a term no longer than that which is usual and customary in the industry at the time the contract is made, then the mazket value of the gas sold pursuant to the contract shall be the total proceeds received by Lessee in the sale, subject to the provisions of pazagraph 5(c) be- low. Yege 2 of 13- On,Arrm G,ss Leese (City of DentodCross Timbers Park Lease)[swh;022707J s:bur documentskonvacub7bross timbal pvk lease 11jun07 (fval).doc (c) The market value of gas will be determined at the specified loca- tion by reference to the gross heating value (measured in British thermal units) and quali- ty of the gas. The market value used in the calculation of oil and gas royalty will never be less than the total proceeds received by Lessee in connection with the sale, use, or other disposition the oil or gas produced or sold. For purposes of this paragraph, if Lessee rece- ives from a purchaser of oil or gas any reimbursement for all or any part of severance or production taxes, or if Lessee realizes proceeds of production after deduction for any ex- pense of production, gathering, dehydration, separation, compression, transportation, treatment, processing, storage, or mazketing, then the reimbursement or the deductions will be added to the total proceeds received by Lessee. Royalty will be payable on oil and gas produced from the Land and consumed by Lessee on the Land for compression, de- hydration, fuel, or other use. (d) Lessor's royalty will never beaz, either directly or indirectly, any part of the costs or expenses of production, separation, gathering, dehydration, compres- sion, transportation, trucking, processing, treatment, storage, or mazketing of the oil or gas produced from the Land or any part of the costs of construction, operation, or depre- ciation of any plant or other facilities or equipment used in the handling of oil or gas on the pooled lands and/or prior to the point of sale. It is understood and agreed between Lessor and Lessee that this clause shall not be considered surplusage as per the principles of the Heritage Resources v. Nations Bank, 960 S.W.2d 619 (Tex. 1997) case and shall be given its full meaning and effect. Notwithstanding anything herein contained to the contrary, Lessor and Lessee agree that Lessor's royalty on gas (to the extent Lessor has not elected to take his or her royalty gas in kind) shall beaz its proportionate share of post-producfion costs associated with such gas to the extent such production costs are in- curred at a point or points not on the lease premises. In the event Lessee and/or its affili- ates provide off-lease post-production services the fee attributable to Lessor's royalty gas shall be the lesser of: 1) the lowest rates charged third parties by Lessee and/or its affili- ates for similaz services or 2) the lowest rate that could otherwise be negotiated under an arms length agreement with bona-fide third parties for the same services. (e) Lessor shall be paid the Royalty Percentage of all payments and other benefits made under any oil or gas sales contract or other arrangement, including take-or-pay payments and payments received in settlement of disputes; provided that if Lessor receives stake-or-pay payment or similaz payment for gas that has not been pro- duced, and if the gas is subsequently produced, Lessor will only receive its Royalty Per- centage of any payments made for make-up gas taken pursuant to the take or-pay provi- sion or similar provision. (f) Lessee must disburse or cause to be disbursed to Lessor its royalty on production from a particulaz well not later than 90 days after completion of the well, in the case of an oil well, or after the pipeline connection, in the case of a gas well. The- reafter, Lessee must disburse or cause to be disbursed to Lessor its royalty on production by the last day of the second month after the month of production. If not paid when due, Lessor's royalty will bear interest at the maximum lawful rate from due date until paid, which amount Lessee agrees to pay. Acceptance by Lessor of royalties that aze past due Page3 of 13- On. MV Gns Le,vss (City of Dcnton/Cross limbers Perk Lease)[swh;022707] s:bur docmnentskoalrecls107krosstimbers park lease I1juo07 (fmal).doc will not act as a waiver or estoppel of its right to receive interest due thereon unless Les- sor expressly so provides in writing signed by Lessor. The royalty payment obligations under this Lease shall not be affected by any division order or the provisions of the Sec- tion 91.402 of the Texas Natural Resources Code or any similaz statute. (g) Upon written request by Lessor, Lessee shall tender a full account- ing as to the payment of royalty to Lessor within 30 days of said request. The format shall be in the form requested by Lessor. However, if no format is specified Lessee shall respond in a format that provides Lessor with an accurate depiction of the amount of pro- duction from the well(s) affecting this Lease for the time period specified and the alloca- tions of payments to the Lessor along with deductions, if any. (h) As used in this Lease, "affiliate" means (i) a corporation, joint ven- ture, partnership, or other entity that owns more than ten percent of the outstanding vot- ing interest of Lessee or in which Lessee owns more than ten percent of the outstanding voting interest; or (ii) a corporation, joint venture, partnership, or other entity in which, together with Lessee, more than ten percent of the outstanding voting interests of both Lessee and the other corporation, joint venture, partnership, or other entity is owned or controlled by the same persons or group of persons. (i) The receipt by Lessee from a purchaser or a pipeline company of proceeds of production for distribution to Lessor will not result in Lessee acquiring legal or equitable title to those proceeds; but Lessee will at all time hold the proceeds in trust for the benefit of Lessor. Notwithstanding the insolvency, bankruptcy, or other business failure of a purchaser of production from the Land or pipeline company transporting pro- duction from the Land, Lessee will remain liable for payment to Lessor for, and agrees to pay Lessor all royalties due Lessor together with interest if not timely paid. 6. Shat-in Royally, While there is a gas well on this Lease capable of pro- ducing gas in paying quantities, but gas is not being sold, Lessee shall pay or tender in advance an annual shut-in royalty of $200.00 per acre leased herein from which gas is not being sold. The first payment of such sum shall be on or before the first day of the calen- daz month at the expiration of Winery (90) days from the date the Lease is not maintained by production, and thereafter subsequent payments may be made at annual intervals. While shut-in royalty payments are timely and properly paid, this Lease will be held as a producing lease. The right of Lessee to maintain this Lease in force by payment of shut-in gas royalty is limited to the period of two years that follow the expiration of the Primary Term. The obligation of Lessee to pay shut-in royalty is a condition and not a covenant. The payment or tender of royalty under this paragraph may be made by the check of Les- see mailed or delivered to the parties entitled thereto on or before the due date. 7. Drilling Obligationa/Delay Rental On or before 180 dava from this date, Lessee agrees to commence the actual drilling of a well on land pooled pursuant to paza- graph 10 below with the Land and thereafter drill it with reasonable diligence and in a good and workmanlike manner to a depth sufficient to test the Barnett Shale Fomration via horizontal drilling. While drilling the well, if Lessee encounters conditions that render Page4of13- OaA*IDGesI°.~ (City ofDenton/Cross Twbcrs Perk Lease)(swh;022707] s:bur docununrsbonuacts~DTcross timbers yank lease I1jm07 (fiml}doe further drilling impractical, Lessee may commence a substitute well within 30 days after abandoning the well. A substitute well that is drilled to the depth and in the manner re- quired for the first well will satisfy this drilling obligation. If Lessee fails timely to com- mence the well, or if having commenced the well fails to drill it to the depth and in the manner required, this Lease will terminate. Lessee may delay the commencement of said well to the end of the Primary Term by paying to Lessor a one time delay rental in the amount of $5000.00 before the end of the fast 180 days of this lease. Said delay rental shall be paid directly to Lessor at the address listed above. 8. Continnous Development. (a) If, at the expiration of the Primary Term, oil or gas is not being produced from the Land, but Lessee has commenced the drilling of a well on lands that will form a proration unit that will include the Land, the Lease will not terminate but will remain in effect for so long thereafter as operations aze carried out with due diligence with no cessation of more than 60 days, and if the operations result in the production of oil or gas, the Lease shall remain in force as otherwise provided herein. For the purposes of this Lease, the term "operations" means operations for any of the following: drilling, testing, completing, reworking, recompleting, deepening, plugging back, or repairing of a well in search of or in the endeavor to obtain production of oil or gas. (b) After the Primary Term, if this Lease is maintained by production or otherwise, it will remain in force as to all acreage and depths as long as there is no lapse of more than 180 days between the completion of one well and the commencement of the actual drilling of another well. The commencement of actual drilling means the penetration of the surface with a drIlling rig capable of drilling to the anticipated total depth of the well. After a well is commenced, drilling operations must continue with dili- gence and in a good and workmanlike mariner in a good faith effort to reach the antic- ipated total depth. A well will be deemed to have been completed on the date of the re- lease of the drilling rig from the drillsite. The permitted time between wells shall be cu- mulative so that if a well is commenced prior to the date it is required to be commenced, the number of days prior to the date on which the well should have been commenced shall be added to the time permitted for the next well. (c) If at any time the maximum time for the commencement of the ac- tual drilling of a well expires without the commencement of a well, or upon the expira- tion of the Primary Tenn if the Lease is not maintained by continuous drilling, this Lease will terminate except as to the portion of the Land. contained in any proration unit with a well that is then producing in paying quantities or deemed to be producing in paying quantities by virtue of payment of shut-in royalties. The Lease will then terminate as to all depths below the stratigraphic equivalent of the base of the deepest producing forma- tion on the said pmration unit. If production from the said proration unit ceases from any cause, this Lease will terminate as to the portion of the Land contained therein unless Lessee commences operations for drilling or reworking on the well from which produc- tion ceased or on a new well on other lands that would include the Land in the proration unit within 90 days after the cessation of production, in which case the Lease as to that Page 5 of 13- Oa Arm Ges I.eess (City ofDenton/Cross Timhers Park Lease)[swh;022707~ s:bur doeumenisbonhx~tDTemss timbers park leaso l Ij,m07 (fiaa0.doc tract will continue in force as long as the operations aze prosecuted with no cessation of more than 60 consecutive days. If the said operations result in production, then this Lease shall remain in force so long thereafter as there is production from the tract. (d) As used in this Lease, the term "horizontal well" means a well that meets the definition of a "horizontal drainhole well" under Statewide Rule 86 of the Rail- road Commission of Texas, and a "vertical well" is a well that is not a horizontal well. A proration unit for a vertical well producing from the Barnett Shale formation may not ex- ceed 40 acres. If field rules are established later that permit obtaining a drilling permit with less acreage, a proration unit for a vertical well may not exceed the minimum size permitted. A proration unit for a horizontal well may include the minimum acreage speci- fied above for a vertical well plus the additional acreage listed in the tables in Rule 86 (For Fields with a Density Rule of 40 Acres or Less) and must comply with the require- ments of Rule 86 for minimum permitted well density, and if the well is producing from the Barnett Shale formation, the acreage of a proration unit shall be assigned as if well density for vertical wells is 40 acres or less. Each proration unit for a vertical well must be as neazly in the form of a square as is practical with the well in the center of the squaze and with the sides of each square running in the cardinal directions. Each proration unit for a horizontal well must be in the form of a rectangle with the horizontal drainhole be- ing as neazly as practical along the center line of the long dimension of the rectangle. 9. Pooling. Lessor and Lessee recognize that it may in the interest of each party for portions of the Land to be pooled with adjacent land to create pooled units for vertical or horizontal drilling. Lessor and Lessee agree that Lessee has the authority to pool the Land in the Acme Gas Unit which said unit shall not exceed 640 acres plus 10% acreage tolerance. Lessee shall pool all of Lessor's Land in said gas unit and shall not release any portion thereof without Lessor's written consent. Any other proposed unit will only become effective upon Lessor's consent, which consent will not be unreasona- bly withheld. 10. Secondary Recovery. Lessee will not implement any repressuring, pres- sure maintenance, recycling, or secondary recovery operations without the prior written consent of Lessor. 11. Surface Uae. Unless this Lease specifically provides for the conduct of seismic operations,,Lessee is prohibited from using the surface of the Land for any pur- pose, but Lessee may engage in directional drilling activities beneath the Land that aze conducted on the surface of other land. Any directional drilling must penetrate the Land sufficiently below the surface as to not interfere with the present or future use of the sur- face of the Land for commercial or residential use, and in no event may the directional drilling penetrate the Land less than 200 feet below the surface. A directional well drilled under this provision shall be considered to be located on the Land. 12. Asaignmenta. Lessor is granting rights to Lessee that Lessor would not grant to others. Therefore, prior written approval of Lessor is required for any assignment or sublease of this Lease, not to be unreasonably withheld. All assignments and subleases Page 6 of 13- On. Atm Gea I,sesa (City of De¢todCross Tunbets Park Lease)[swh;022707] s:bur dacumenubo¢¢actsb7~ross timber park lease I]ju¢07 (rmal).doc must require the assignee or sublessee to assume all of Lessee's obligations under this Lease, but Lessee will remain liable for its obligations regazdless of any assignment or sublease by it. No assignment or sublease will be effective until a certified copy of the recorded document is furnished to Lessor. 13. Force 114ajeure. Should Lessee be prevented by reason of Force Majeure from complying with any express or implied covenant of this Lease (other than a re- quirement to pay money), from conducting drilling or reworking operations on the Land, or from producing oil or gas, then while so prevented, that covenant will be suspended; Lessee will not be liable for damages for failure to comply therewith; this Lease will be extended so long as Lessee is prevented from conducting drilling or reworking operations on or from producing oil or gas from the Land; and the time while Lessee is so prevented will not be counted against Lessee. "Force Majeure" means any Act of God, any federal or state law, or any Wile or regulation of governmental authority, or other similaz cause (other than financial reasons). This pazagraph is, however, in all things subject W the li- mitations of time during which this Lease may be continued in force by the payment of shut-in gas royalties. 14. No Warranties. Lessor makes no warranty of any ]rind with respect to title to the Land. By acceptance of this Lease, Lessee acknowledges that it has been given full opportunity to investigate and has conducted sufficient investigation to satisfy itself as to the title to the Land, and Lessee assumes all risk of title failures. If Lessor owns an interest in the Land less than the entire fee simple estate, then the royalties payable he- reunder will be reduced proportionately. Lessee, at its option, may dischazge any tax, mortgage, or other lien on the Land, and in the event Lessee does so, Lessee will have the option of applying the royalties accruing to Lessor towazd payment of it. 15. Caring Defanlta. Should Lessee at any time fail to comply with its obli- gations hereunder regazding construction, maintenance, tir repair within 30 days after written notice from Lessor, Lessor will have the right to do or have done whatever is ne- cessary to fulfill the obligations to its satisfaction, and Lessee shall be liable to Lessor for the reasonable and necessary expenses thus incurred by Lessor, to be paid within ten days after Lessor furnishes to Lessee an itemized written statement of the expenses. 16. NoHtes. All notices will be deemed given and reports will be deemed de- livered if sent by certified letter, return receipt requested, properly addressed and depo- sited in the United States Postal Service, postage prepaid, to Lessor and Lessee at the ad- dresses shown for each party. Any party may designate a new address by proper notice to the other party or parties. 17. Attorney's Fees. In the event that Lessor is required to employ legal counsel for the enforcement of any provision of this Lease and prevails, Lessor will be entitled to recover from Lessee reasonable attorney's fees and expenses incurred by Les- sor. Page 7 of 13- Oa, Arvn Cns I,rnse (City of DentodCross Timbers Park I,easc)(swh;022707J s:bw documenlsbootlactslOTcross timbers pmk Imx 111nn07 (fiml).dnc 18. Insurance Requirements. Lessee shall provide or cause to be provided the insurance described below for each well drilled under the terms of this Lease, such insurance to continue until the well is abandoned and the site restored. Such insurance shall provide that Lessor shall be a co-insured, without cost, and that said insurance can not be canceled or terminated without thirty (30) days prior notice to Lessor and ten (10) days notice to Lessor for nonpayment of premiums. a. General Requirements. Indemniflcatlon and Ezpress Negligence Pro- visions. LESSEE shall expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, or now have or may have, or assigns may have, or claim to have, against the LESSOR, it agents, officers, servants, successors, as- signs, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unlmown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the oil and gas drilling and production per- formed by the LESSEE under this lease and the LESSEE shall fully defend, protect, in- demnify, and hold harmless the LESSOR, and/or its departments, agents, officers, ser- vants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the LESSOR, and/or its deparnnents, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by LESSEE, its agents, assigns, or any third parties on account of, aris- ing out of, or in any way incidental to or in connection with the performance of the oil and gas well drilling and production performed by the LESSEE under this lease and, the LESSEE agrees to indemnify and hold harmless the LESSOR, and/or its departments, and/or its officers, agents, servants, employees, successors, assigns, sponsors, or volun- teers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the LESSOR and/or, it's departments, it's officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the LESSOR occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TQ CLAIMS AND DAMAGES ARIS- ING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF THE LESSOR OC- CURRING ON THE DRILL STIR OR OPERATION SITE IN THE COURSE AND SCOPE OF TTS DUTIES UNDER THIS LEASE.. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN IN- DEMNITY EXTENDED BY THE LESSEE TO INDEMNIFY AND PROTECT THE LESSOR AND/OR ITS DEPARMENTS, AGENTS, OFFICERS, SERVANTS, OR EM- PLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF DENTON, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SER- VANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANTANT INNRY, DEATH, AND/OR DAMAGE, BUT NOT IN THE EVENT OF GROSS NEGLIGENCE AND/OR WILL- FUL MISCONDUCT. Page 8 of 13- O¢,Arm Gee Leese (City of DeolodCross Timbers Park Lease)[swh;022707] s:bur docemeats~contrects~D7woss timbers perk lease 11jun07 (Oml).doc b. All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE TO THE LESSOR AND THE CITY EXCEPT WHEN THIS POLICY IS BE- ING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE ] 0 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED". c. Liability policies shall be written by tamers licensed to do business in Texas and with companies with A: VIII or better rating in accordance with the current ,Best Key Rating Guide. d. Liability policies shall name as "Additional Insured" the city and its offi- cials, agents, employees, and volunteers. e. Certificates of insurance must be presented to the City evidencing all co- verages and endorsements required by Section 35.22.8 of the Denton Development Code as now written or as further amended, and the acceptance of a certificate without the re- quired limits and/or coverages shall not be deemed a waiver of these requirements. f. Claims made policies will not be accepted except for excess policies or unless otherwise provided by this Article. g. Required Inearanee Coverages. 1. Commercial General Liability Insurance. Coverage should be a min;muln Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. This coverage must include premises, op- erations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors protective liability and personal injury. 2. Environmental Impairment (or Seepage and Pollution) shall be ei- ther included in the coverage or written as separate coverage. Such cover- age shall not exclude damage to the lease site. If Environmental Impair- ment (or Seepage and Pollution) Coverage is written on a "claims made" basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the pelnut. Coverage shall apply to sudden and non-sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other imtants, contaminants or pollutants. 3. Automobile Liability Insurance. Minimum Combined Single Lim- it of $500,000 per occurrence for Bodily Injury and Property Damage. Such coverage shall include owned, non-owned, and hired vehicles. Page 9 of 13- Oa. Atvu Gus Luse (City of DentotJCross Timbers Park I.ease)[swh;022707] s:~uut documcats4antmds~ATeross timbers park lease Iljua07 (fmal).doc 4. Worker's Compensation Insurance. In addition to the minimum statutory requirements, coverage shall include Employer's Liability lim- its of at least $ 100,000 for each accident, $100,000 for each employee, and a $500,000 policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the city, its officials, agents, em- ployees, and volunteers for any work performed for the city by the LES- SEE. 5. Excess (or Umbrella) Liability Insurance. Minimum limit of $10,000,000 covering in excess of the preceding insurance policies. 6. Control of Well Insurance. a. Minimum limit of $5,000,000 per occurrence. b. Policy shall cover the Cost of controlling a well that is out of control, Redrilling or Restoration expenses, Seepage and Pollution Damage. Damage to Property in the LESSEE'S Care, Custody, and Con- trol with asub-limit of $500,000 may be added. 19. Dispute Resolution. Tn the event of a dispute under this Lease, the parties agree to attempt to resolve the dispute through good faith mediation to be held in Denton County, Texas. 20. Miacellaneons Provisions. (a) In the event this Lease expires for any reason as to all or any part of the Land, Lessee shall, within 60 days thereafter, furnish Lessor with a written, record- able release wvering all of the Land or that portion of the Land to be released. (b) Nothing in this Lease negates the usual implied covenants imposed upon Lessee. (c) Lessee will conduct all operations hereunder in compliance with the rules of the Railroad Commission of Texas and federal and state environmental laws and regulations. Lessee will give Lessor at least ten days prior notice in writing before conducting drilling, recompletion, or reworking operations under the Land. Upon request by Lessor, Lessee shall furnish to Lessor copies of applications to drill, daily drilling re- ports, well tests, completion reports, plugging records, gas purchase contracts, and pro- duction reports. Lessor has the right, personally or by representative, at Lessor's risk, of access to the.devick floor to observe all opetafions on all wells drilled on the Land. Les- sor will have the right to inspect and take samples of all cores and cuttings and witness the taking of all logs and drill stem tests, and Lessee agrees to furnish Lessor with copies of all logs and surveys taken promptly after taking them. Lessee will divulge to Lessor correct information as requested by Lessor as to each well, the production therefrom, and such technical information as Lessee may acquire. Lessor has the right to be present Page ]0 of 13-On.MID GAS Leese (City of Dentoo/Cross Timbers Park Lcasc)[swh;0227071 s:bur docume¢tsko¢trecLSb7bross timbers perk lease I lju¢07 (futal).doc when wells or tanks are gauged and production metered and bas the right to examine all run tickets and to have full information as to production and runs and to receive copies of all run tickets upon request. (d) The term "production" means production in paying quantities. No obligation of Lessee to pay money under this Lease will be excused or delayed by reason of Force Majeure. Lessee's obligations to pay money under this Lease aze to be per- formed in Denton County, Texas. Paragraph headings are used in this Lease for conveni- ence only and are not to be considered in the interpretation or construction of this Lease. The execution or ratificafion by Lessor of any division order, gas contract, or any other document will not alter any provision of this Lease unless the intent to do so is expressly stated in the document. Lessee agrees to fiunish to Lessor a copy of each title opinion or report obtained by Lessee that covers all or any part of the Land together with a copy of each title curative document obtained by Lessee. (e) Lessor shall have the right to inspect all records of Lessee relating to this Lease, operations conducted on the Lease, the sale and marketing of production from the Lease, and the payment of royalties, including the right to audit Lessee's books insofar as they relate to the foregoing. (fj Compliance with DrlDing Ordinance. Lessee shall, before drilling any well which contains any of the Land in the well's drilling unit or pooled unit, comply with the City of Denton's ordinances to include, but not limited to having a final approved plat. (g) This Lease is binding upon and for the benefit of Lessor, Lessee, and therr respective heirs, personal representatives, successors, and assigns. 21. Memorandum of Lease. As evidence of this Lease, Lessor and Lessee agree in its stead, to enter into and record in the Real Property Records of Denton Coun- ty, Texas a MEStoanrmuM of LEASE. Executed on the date first written above. LESSOR: CITY of DErrrON, TExAS, a home rule municipality GEORGE C. CAMPBELL, CITY MANAGER Page ll of l3-Oa.ArmGesLeasg (City of DentodCross Timbers Park Lease)[swh;022707] s:bur documrntslcootmctabTcross t®bus park lease 11jua07 (fiml).doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ED SNYDER, CITY ATTORNEY BY: STATE OF TEXAS § COUNTY OF DENTON § Before me. ~ e undersigned notary public, on this day person appear GE GE C. CAMPBELL, the City Manager of the CITY OF DENTO ,who is own to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me thatexecuted that instrument for the purposes and consideration therein expressed. ~~.. my hand and seal of office this ~~~ day of 2007. .r.:~'tp:••," JENNIFER K. WALTERS ''°` ~^" Notary Public, State of Texas ,~, i i My Commi55ion Expires ••;rii~;;''- December 19, 2010 Page 12 of 13-Oa.Axu GeS Leese (City of DentoolCross Timbers Park I.ease)lswh;022707J s:bur documents`coatrecrs~D7rcross timbers perk lease I Ijod17 (fiael).dac ' LESSEE: ENDEAVOR ENERGY RESOURCES, L.P. By: ENDEAVOR PETROLEUM, L.L.C. „n I'F~S GENERAL PARTAiER Member THE STATE OF TEXAS C'nTTNTY OF MTnT.ANI) This instrument wa$ aclrnowle ed before me, ~,(~,(iti ~(/. (~~/-[(~4.{~ a Notary Public, on this ~ day of 2007, by Autry C. Stephens, Sole Member of Endeavor Petroleum, L.L.C., Gen rat P rtner of Endeavor Energy Resources, L.P., on behalf of said limited partnership. ~~~Ilunuun~„ ~.~~`.~~(Y S. y~%, .~Ln ~ //'~` y = P ~: Oj F P NES '~ ' 3 p1 ..~ ///,///~~~~IIIOj il11411~~~~. ~~ Notary Public, tate of Texas Pagc 13 of 13-OIL AND GAS LEASE (City of Denloo/Cross Timbers Park Lease)[swh;022707] S:\our documents\coNrac[s\07\cross limbos park Icasc I Ijm107(linal.doc EXHIBIT Al ` ( Colem~in R. Assoc.. Land Surveying \~.i ,~ P o. llox esf, i " lku[on 7fxas 7(121)2 .._. - :. ~~ Pbotx 199413,~W-RYIv Far (9 t0),"~fi.'-s-!fNi)() Tract ~ Ciry of Denton (Cross Timbers Park) 19.45 Acres Being a part of the called 114.760 acre tract described in the deed from Chazles N. Ryan et al to Ranch Ventures, LTD recorded in Volume 4372, Page 581 ofthe Real Property Records. of Denton County, Texas and also being a part of Lot 23 Block E and-all of Lot 39, Block I of Ryan Ranch Phase 1 as shown by the plat thereof recorded in Cabinet S, Page 1 t8 of the Ptat Records of Denton County, Texas; and. being more particularly described as follows: BEGINNING for the Northeast comer of the tract being described herein at a %z inch imn rod found at the Fast Northeast comer of the 114.760 acre tract on the South line of the called 69.320 acre tract described in the deed from The Evange]ical Litthetan Good Saznaritan Society of Sioux Falls to the City of Denton, Texas recorded in Volume 5224, Page 2912 of the said Real Property Records of Denton County, Texas and the Northwest corner of the called 79.519 acres described in the decd from Acme Brick Co. to Endeavor Energy Resources recorded tinder Clerk's File 1Qumber 2005-161.734 of tho said Real Pmperty Records; THEi\'CE South 00 Degrees 48 Minutes 30 Seconds East with the Eastluie of the 114.750 acre tract and the West line of the said 79.518 acre tact a distance of L273.0 feet to a %a inch iron tod found at the Southwest comer thereof and the Northwest comer of Oaks of Montecito Phase I as shown by the plat thereof recorded in Cabinet N, Page 54 of the said Plat Records, THENCE North 89 Degrees 48 Minutes 51 Seconds West across the 114.760 acre tract passing the East line of said Lot 23 and continuing, ut a11, a total distance of 620.0 feet to the West line thereof; THENCE with the West line of Lot 23 the following 4 calls: I. Northeasterly with a curve to the left having a radius of 1130.0 feet an azc distance of 4265 feet (Chord Bearing North 00 Degrees 29 Minutes 40 Seconds East a distance of 424.0 Feet) to the beginning of a curve to the left having a radius of 1130.0 feet; 2. North. 10 Degrees 19 Minutes 04 Seconds West a distance of 342.3 feet to an angle point therein; 3. North 00 Degrees 07 Minutes OS Seconds East a distance of 87.00 feet; 4. North 28 Degrees 03 Minutes 30 Sc~onds East a distance of 373.1 feet to the South right~f--way Creekdate Drive; THENCE North 00 Degrees 07 Minutes 04 Seconds East crossing Creekdate Drive a distance of 60.0 feet to the North right-of--way thereof at the Southwest comer of Lot 39, Block 1 of said Ryan Ranch Phase I; THENCE Notch 21 Degrees 48 Minutes 14 Seconds East with the West line of Lot 39 a distance of 266.9 feet to an angle point therein; THENCE North 00 Degrees 35 hfinutes 52 Seconds West continuing with the West line of Lot 39 a distance of 419.2 feet to the Northwest comer thereof; THENCE North 88 Degrees 3 S Minutes 29 Seconds East with the North line of Lot 39 a distance of 114.51 feet to the Northeast comer thereof on the West line of the called 69.320 acre tract described in the deed firm The Evangelical Luiheran Good Samaritan Society of Siotix Falls to the City of Denton, Texas recorded in Volume 5224, Page 2912 of the said Real Property Records THENCE South OI Degrees 49 Minutes 30 Seconds East with the East line of Lot 39 passing the Sou0t line thereof and continuing, in all, a toial distance of 642.7 feet to a reentrant. comer of the 114.760 acre tract-, THENCE North 88 Degrees 32 Minutes 21 Seconds East with the North line of the 114.760 acre trail a distance of 253.8 feet to the PLACE OF BEGLNNING and enclosing 19.45 acres of land. EXHIBIT A2 N 88'35'29" E ' X35' ti~ 114.5 ~~ - . . z n~ ~ J ° uuE6 ss.san ACRES ~ ~~N t~" ~~ n+ ~'~ '+;' OT 39 R~p f W I ° 9ANARrtY1 SCOCIE 71' pf SWUX FALLS. SOUTH OAKOTA t . L , BLOCK 1 : I T (0..044 RYAN RANCH Cp6 I ~ L ~ ~ N p PHASE f ~ YO 22{ P. 2B 2 " CAB. ; P. 120 N ~ IAKE FOREST PARK' PRC.C. T. J I N 21'48'14" E 266.9' I I N 88'32'21' E 253.8' N 00'07'04" E 60.0' ~ ... _ _ _ CREEKDALE DRIVE ti~ ,l N 28'03'30' E 373.1' O ~~ ~ 00 19.45 ACRES o ~~ m Q o 4 G,t. p C~Q µ-~' Y m CALLLD 7R3/e ACRES Z (~ ACHE BRK%C C0. LOT 23, BLOCK E RYAN RANCH I mF ~ ~ ~ O ,,, ENBEAVaR uii ar RESOURCEs CF.t1 2065-IH731 N 10'19'04" Y/ 342.3' PHASE I CAB. S, P. 120 ~q p ~ q a X~ ~ N P.R.OCT. c °oi< ~ ~ R=1130.0' t L=217. T ~~ h~ Ei CH= N 04'47'56'Y/ 217.4' D=11'02'16' R~1130.0' Lm208.8' ' ' ° ' ~, CH= N 06 00 48 E 208.5 D=10'35'13' X1104 , N 89'48'51" W 620. - - " oA%3 or NoNlECrco / PHASE 3, SECTION A CAB. 0. P. 367 N TRACT 5 , LEASE EXHIBIT TRACT 5 ACME M EGAUNIT CITY OF DENTON DENTON COUNTY, TEXAS 1 0 600 DRAWN: 'CF JOB ~: 1375 CHECKED: WMC DATE:. 3-23-07 REVISED: N/A SCALE: 1" = 300' 050 300 Coleman & Associates Land Surveying P. 0. 60% 686 DENTON, TEXAS 76202 PH(940~'63-8213,PAX (840)585-8600, WWW.COIENANSURVEYING,CON MEMORANDUM OF OIL AND GAS LEASE THE STATE OF TEXAS COUNTY OF DENTON WHEREAS, The City Of Denton, Texas, whose address is 215 E. McKinney St., Denton, Texas 76201, as Lessor (whether one or more), and Endeavor Energy Resources, L.P., whose address is 110 N. Marienfeld, S ' 200, Midla d, Texas 79702 (hereinafter called Lessee), have entered into an Oil and Gas Lease dated 2007 (the Lease), and; WHEREAS, the Lessee and Lessor have mutually agreed not to record the Lease in its entirety in the records of Denton County. Texas, and instead have agreed to record this Memorandum of Lease; NOW, THEREFORE, in consideration of the valuable consideration given this date, the receipt and sufficiency of which is hereby acknowledged, and of the other terms of the lease, duplicate copies of which have been retained by the parties, Lessor hereby grants, leases, and lets unto the Lessee for the purpose of exploring, drilling, operating for and producing oil and gas from the following described land in Denton County, Texas: 19.4 Acres as more particularly described on Exhibit "A" attached hereto and made part hereof. In the County of Denton, State of Texas, containing 19.4 gross acres, more or less (including any interests therein which Lessor may hereafter acquire by reversion, prescription or otherwise), for the purpose of exploring for, developing, producing and marketing oil and gas, along with all hydrocarbon and nonhydrocarbon substances produced in association therewith, produced through a well bore. In addition to the above-described leased premises, this lease also covers accretions and any small strips or parcels of land now or hereafter owned by Lessor which are contiguous or adjacent to the above-described leased premises, and, in consideration of the aforementioned cash bonus, Lessor agrees to execute at Lessee's request any additional or supplemental instruments for a more complete or accurate description of the land so covered. For the purpose of determining the amount of any shut-in royalties hereunder, the number of gross acres above specified shall be deemed correct, whether actually more or less. All in accordance with the terms and conditions of the Lease, the Lease shall be effective for a term of One (1) Year from the date of the Lease and as long thereafter as oil or gas or other substances covered thereby are produced from said land. Should there be any conflict between this Memorandum of Lease and the Lease herein referred to, then in all cases the Lease shall take precedence. The provisions hereof shall extend to and be binding upon the heirs, successors and legal representatives and assigns of the parties hereto. This instrument may be executed in any number of counterparts, and shall be binding upon the party or parties so executing, their heirs, when taken together constitute,.lput one and the sar~'Ia instrument. EXECUTED this/(/day of, 2007. LESSORS: CITY OF DENTON, TExns, a home rule municipality ~/,~_ GEROGE C. CAMPBELL, Clty anager each of which shall be deemed an original successors and assigns, and all of which Page 1 Of 2 - MEMORANDUM OF OIL AND GAS LEASE CITY OF DENTON TO ENDEAVOR ENERGY (City of Denton/Oil & Gas/Cross Timbers.Memo)[amj;062807] ATTEST: JENNIFER WALTERS, City Secretary By: APPR D AS T LEGAL FORM: ED SNYDER, City Attorney By: _. ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF DENT¢tJ § Before me, a undersigned notary public, on this day personally appeared GEORGE CAMP ELL, he City Manager of the CITY OF DENTON, who is known to me to be the person whose name ' subsc ed to the foregoing instrument, and acknowledged to me that he executed that instrument for the purposes and considerations therein expressed. Given under my hand and seal of office this ~ ~~ day of , 2007. +~~"•'!~~''. JENNIFER K. WALTERS zo.• a? •'•; = Notary Public, State of Texas ',z My Commission Expires '~,:`,~;;;:"`~ December 19, 2010 LESSEE: ENDEAVOR ENERGY RESO RCES, L. P: BY: ENDEAVOR OL M, L.L. . IT'S GENE L R By: Printed Name: utr C. Ste he Capacity: Sole Member STATE OF TEXAS Not Pubic, to of exas My missio xpires:~~ 9 ~ /~ COUNTY OF MIDLAND § Before me, ~ ,the undersigned notary public, on this day personally appeared Autrv C. Stephens Sole Met er of Endeavor Petroleum, L.L.C., Ceneral Partner of Endeavor Energy Resources, L. P., on behalf of said limited partnership, who is known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to- me that he/she executed that instrument lbr the purposes and considerations-therein expressed. C \~~~~fuunrDUp,~ ~~T(dEtgn~ftppd and seal of office this ~lp~ da of 2007. 0 .'~tP.AV a • 9 Gn~: Notar}' Public, ate of'fexas i `_. `~ ~y My Commission Expires: 7-, 3D -oZD/~ AIVII I~AJ LCAJM; )ENDEAVOR ENERGY & Gas/Cross Timbers.Memo)[amj;062807] EXHIBIT Al "-" ' ,- Coleman & Assoc.. Land Surveying ~ ~F ,Vi P.t). lios ti}ifi - `~ Ik:u:rnu'1'raas i6'2u2 ~_ .,... ..,. .~ i'bvuc t940},5Gy.8Y1:, Fze (940):,ti&!!A(lU '~:4v - ~t'r~~` Tract 5 City of Dettton (Cross Timbers Park) 19.45 Acres Being a part of the called 114.760 acre tract described in the deed firom Charles N. Ryan et al to Ranch Ventures, LTD recorded in Volume 4372, Page 581 ofthe Rea] Property Records of Denton County, Texas and also being a part of Lot 23 Black E and all of Lot 39, Block 1 of Ryan Ranch Phase 1 es shown by the plat thereof recorded in Cabinet 9, Page 118 of the Piat Records of Denton County, Texas; and being more particularly described as follows: BEGINNING for the Northeast comer of the tract being described herein at a Yz inch iron rod found at the East Northeast comer of the 114.760 acre tract on the South line of the called 69.320 acre tract described in the deed from The Evangelical Lutheiatt Good Samaritan Society of Sioux Falls to the City of Denton, Texas recorded in Volume 5224, Page 2912 of the said Real Property Records of Dentoa County, Texaz and the Northwest comer of the called 79.519 acres described in the deed from Acme Brick Co. to Endeavor Energy Resottrces recorded tinder Clerk's File Number 2005-161734 of the said Real Property Records; THENCE South 00 Degrees 48 Minutes 30 Seconds East with the East line of the 174.760 acre tract and the West line of the said 79.51 B acre tract a distance of 1273.0 feet to a'/a inch. iron rod found at the Southwest comer thereof and the Northwest comer of Oaks of Montecito Phase I as shown by the plat thereof recorded is Cabinet N, Page 54 of the said Plat Records, TI3ENCE North 89 Degrees 48 Minutes 51 Seconds West across the 114,760 acre tract passing the East line of said Lot 23 and continuing, in all, a total distance of 620.0 feet to the West lute thereof; THENCE with the West line of Lot 23 the following 4 calls: 1. Northeasterly with a curve to the left having a radius of 1130.0 feet an arc distance of 426.5 feet (Chord Bearing North 00 Degrees 29 Minutes 40 Seconds East a distance of 424.0 Feet) to the begittning of a curve to the left having a radius of 1130.0 feet; 2. North 10 Degrees 19 Minutes 04 Seconds West a distance of 342.3 feet to an angle point therein; 3. Notth 00 Degrees 07 Minutes 05 Seconds East a distance of 87.00 feet; 4Nortli 28 Degrees 03-ivlinutes 3t) Seconds East a distance of 373.1 feet to the South rightof--way Creekdale Drive; THENCE Notth 00 Degrees 07 Minutes 04 Seconds East crossing Creekdale Drive a distance of 60.0 feet to the North right-of--way thereof at the Southwest comer of Lot 39, Block 1 of said Ryan Ranch Phase I; THENCE North 21 Degrees 48 Minutes 14 Seconds East with the West line of Lot 39 a distance of 2bb.9 feet to an angle point therein; THENCE.North 00 Degrees 35 Minutes 52 Seconds West continuing with the West line of Lot 39 a distance of 419.I feet to the Northwest comer ihereof; THENCE North 88 Degrees 3 S Minutes 29 Seconds East with the North line of Lot 39 a distance of 114.51 feet to the Northeast comer thereof on the' W est line of the called b9.320 acre tract described in the deed from The Evangelical Latheran Good Samaritan Society o f Sioux Falls [o the Ciry of Dentoq Texas recorded in Volume 5224, Page 2912 of tho said Real Property Records THENCE South 01 Degrees 49 Minutes 30 Seconds East with the East line of Lot 39 passing the South line thereof and continuing, in all, a total distance of 642.7 feet to e reentrant comer of the 114.760 acre tract; THENCE North 88 Degrees 32 Minutes 21 Seconds East with the North line of the 114.750 acre tract a distance of 253.8 feet to the PLACE OF BEGLNNIIVG and enclosing 19.45 acres of land. EXHIBIT A2 N 88'35'29" E ~~~ 114.5' ~~ti~" JJ ~ ~ - . ---- ... ~ ~~- z 'w 10 U o ,N ~ r n' ~ W V R~p~~_'~ LOT 39, BLOCK 1 ~ W °. ~ t'O,GZ' RYAN RANCH ~ SL Pf P PHASE t ~ CAB. 5,-P,-120- -- -N-~ P,RO.C.T, v N 21'48'14" E 266.9' ~ N ooro7'04" E 6D.0' ~ I I N 28'03'30' E 373.1' W Fy~P'~~'`,~ p~MS Q' O• Go m i. ~pjt-O'4 o z N 10'19'04" W 342.3' R=1130.0' L=217.7' pia N oa•a7'S6'W 2f D=iiro2'16'- Re1130.0' L~208. B' CH= N 06'00'48"E 208.5' D=10'35'13' TRACT 5 O 19.45 ACRES ..~ FALLS. N 88'32'21' E 253.8' N 0 0 Y LOT 23, BLOCK EI ~ RYAN RANCH ~ ~ PHASE 1 CAe. S P. 120 ~ 4 P.R0.CT. d ~o~ I\ \ y5 ~d ~~ N 69•aa'S1" W LEASE EXHIBIT TRACT 5 ACME M EGAUNIT CITY OF DENTON DENTON COUNTY, TEXAS DRAWN: CF JOB t: 1375 CHECKED: WMC DATE: 3-23-07 REVISED: N/A SCALE: 1" = 300' O) CALLID 7eS1e ACp[4 a AC{IE BRN~ CO. AO ~ ENDEAVOR Q7 Y RESOUOC6 csx Zoos-tef7sa N /V.t u; oA%s or NoNrcaro PW~SE 3, SECTION A CAB. 0. P. J07 N Coleman & Associates 1 D D Land Surveying 0 50 300 P. O. BO% 688 DENTON, TEXAS 76202 ~ PH(940),SBS-8215,FA% (940)565-8800, WWW.COLENANSURVEYING.CON ®zoo~ wuyAN e: Assoc. suRVEraN+