2001-481
%(+$1$%$1$-"$%.1,2001481
AdditionalFileExists
AdditionalFileContainsRecordsNotPublic,AccordingtothePublicRecords
Act
Other
%(+$2#§º«(´¯º¯§²¹
AmendmenttoSurfaceUseAgreement[copyisattached]04/29/04JR
AmendmenttoSurfaceUseAgreement[originalisattached]08/30/04JR
Modification,Clarification&RatificationofOil,Gas&Mineral
LeaseKOrdinanceNo.200512601/16/05JR
AssignmentofGasWellSurfaceUseAgreementKOrdinanceNo.
200520207/26/05JR
UndergroundPipelineEasementAgreement[originalisattached]04/28/06JR
AmendmenttoModification,ClarificationandRatificationofOil,
Gas&MineralLeaseKOrdinanceNo.200617306/20/06JR
FourthAmendmenttoSurfaceUseAgreementKOrdinanceNo.
201203902/21/12JR
S \Our Docume.ta\Ordmances\Ol\OI1 and Gas Lease Ordinance doc
ORDINANCE NO ~/-
AN ORDINANCE ALLOI~qNG THE NEGOTIATION OF THE BEST BID FOR A CONTRACT
FOR THE OIL AND GAS LEASE AGREEMENT AT THE MUNICIPAL AIRPORT IN
SUBSTANTIALLY THB SAME FORM AS BID 2?69, AND PROVIDING AN EFFECTIVE
DATE (BID 2?69 OIL AND GAS LEASE AORBEMENT AWARDED TO SUPERIOR P&B
LLC/BNBXCO, INC )
WHEREAS, The C~ty Council of the City of Denton has heretofore determined that ~t
advisable to lease for o~1 and gas purposes certain real property located at the Denton Munlmpal
Airport, Denton, Texas, and
WHEREAS, m comphance wah Chapter 71 of the Texas Natural Resources Code (the
"Code") the City pubhshed not,ce of its mtent~on to lease such real property for oil and gas purposes
once a week for three consecutive weeks in a newspaper with general c~rculatxon and pubhshed ~n
Denton County, Texas, and
WHEREAS, m compliance wxth the Code, the City Council of the Cxty of Denton held a
pubhc heanng, and
WHEREAS, Pursuant to the Code, the Cxty of Denton demres to negotiate the lease of the
property for ml and gas well development with the best bad submitted by Superior P&E LLC /
Enexco, Inc ~n substantmlly the same form as outlined ~n Exbabat A for approximately 554 14 acres,
and
WHEREAS, Superior desires to enter into lease negotiations for the land at the airport for
and gas well development and after negotiation, to enter into a lease for the land at the mrport for ml
and gas well development and to agree to pay to the City the agreed upon amounts, NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I The C~ty Manager or bas designee are hereby authorized to negotiate and
execute a lease agreement between the C~ty of Denton and Superior P&E LLC / Enexco, Inc m
return for the payment(s) as outhned xn Attachment A for the approximately 554 14 acres of
Munmxpal Axrport property m accordance with the agreed upon Oil ,Gas and M~neral Lease and
Surface Use Agreement substantmlly the same form(s) as those attached to and incorporated by
reference herein as Exbablt B and Exlub~t C
SECTION 2 Thts ordinance shall become effective immediately upon its passage and
approval
EULINE BRO~, MA~OR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERB~~ORNEY
2
Exhibit A
TABULATION SHEET
BID# 2769 Date 12-6-01
OIL AND GAS LEASE AGREEMENT
No. I , , DESCRIPTION VENDOR
Principle Place of Business Dallas
ROYALTY TO LESSOR NOT LESS THAN (1/5) OF
ALL OIL & GAS PRODUCEB FROM SAID LANB One F~fth (1/5)
I 1 (IF GREATER THAN 1/5, PLEASE SPECIFY)
I ALL ANNUAL DELAY RENTAL OF NOT LESS
~ THAN ($10 00) PER ACRE (IF GREATER THAN $50
I 2 $10 00 PERACRE, SPECIFY) (One Well)
/ SHUT-IN PAYMENT OF NOT LESS THAN
~ TWENTY & NO/100 ($20 00) PER ACRE (IF $25 00
3GREATER THAN $20 00 PER ACRE)
BONUS MONEY AS SPECIFIED BY BIDDER
/ A ACRES X $ =
! TOTAL BONUS MONEY FOR 554 14 Acres
/ BONUS MONEY AS SPE~BID & X $200=$110,828
4 WITH THE MINIMUM TO BE $175 00 PER ACRE
2769
EXHIBIT B
S \Our Documents\Contracts\02\Redhne Enexeo Off Gas & Mineral Lease doc
OIL, GAS AND MINERAL LEASE
CITY OF DENTON AIRPORT
THIS OIL, GAS AND MINERAL LEASE (the "Lease") is made this 17th day of January,
2002 (the "Effective Date"), between The City of Denton, Denton, Texas, acting herein by and
through ItS City Manager, Michael A Conduff, duly authorized by resolution to execute this
Lease ("LESSOR"), whose address is 215 East McKlnney, Denton, Texas 76201 and Enexco,
Inc ("LESSEE"), whose address is 3500 Oak Lawn Avenue, Suite 390, LB #15, Dallas, Texas
75219
WITNESSETH'
I Lease of Land. LESSOR m consideration of a bonus of One Hundred Ten Thousand,
Eight Hnndred Twenty-eight Dollars and Sixty Cents ($110,828 60), in hand paid, of the
royalties herein provided, and of the agreements of LESSEE herein contmned, hereby leases and
lets exclumvely unto LESSEE for the purpose of investigating, explonng, prospecting, dnlhng
and mlmng for and producing oil, gas and all associated minerals, conducting exploration,
geologic and geophysical surveys by seismograph, core test, gravity and magnetic methods,
injecting gas, water and other fluids rotc subsurface strata, laying pipe lines, building roads,
tanks power stations, telephone lines and other structures thereon and on, over and across lands
owned or clmmed by LESSOR, to produce, save, take care of, treat, transport and own smd
products, the following described land in Denton County, Texas, to-wit
TRACT 1 The land described in condemnation proceedings identified by Cause No
3922 filed on November 30, 1943 between the City of Denton and R M Evers, et al and
subsequently filed in Volume 1675, Page 546 of the Real Property Records of Denton
County, Texas, contmnlng 147 26 acres, 2 26 acres of which is in a public road, in the
William Wflbum Survey, Abstract Number 1419
TRACT 2 The land described in that Warranty Deed dated December 23, 1943 between
P.T Underwood and wife Jlmmle Underwood and the City of Denton recorded in
Volume 304, Page 503 of the Real Property Records of Denton County, Texas,
containing 74 94 acres, 1 75 acres of which is in a public road, In the Thomas Toby
Survey, Abstract Number 1285
TRACT 3 The land described in that Warranty Deed dated January 18, 1944 between
Mrs Ellen Pearl Corbin, a widow, Hugh C Corbm and wife, Sue Lou Corbln, John S
Corbln, Alice Corbln Brown and husband W O Brown, Grace Corbln, a feme sole,
Georgia Corbm, a feme sole, James E CorbIn and wife, Johnnie Corbln, Mrs Gertie
Corbm Hurst and husband, G E Hurst, and the City of Denton, recorded m Volume 305,
Page 216 of the Real Property Records of Denton County, Texas, containing 331 94
acres, 2 61 acres of which is in a public road, in the Wm Smith Survey, Abstract Number
1188, and the Wm NeIll Survey, Abstract Number 970
For all purposes of this Lease, smd land is estimated to comprise 554 14 acres, whether it
actually comprises more or less
However, there is expressly excepted from th~s Lease and reserved to LESSOR, ~ts successors
and assigns, all vana&um, uranium, plutonium, thorium, fissionable minerals and all other
minerals of every kind and character m, on and under the land, except only oil, gas, caslnghead
gas and their byproducts and such other hydrocarbon substances, carbon dioxide and sulfur as
are necessarily produced w~th and mcldental to the production ofml and gas, or eather of them
2. R~servat~on. There as 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 minerals except those expressly leased and only to the extent herein leased to
LESSEE The Surface Use Agreement shall govern the use of the surface by LESSEE
3 Prlmarv Term Thas as a paid up lease and subject to the other provisions here
contmned, this Lease shall be for a term of three (3) years from the Effective Date (the "Primary
Term") and as long thereafter as off, gas and other minerals are produced m paying quantities
from said land or land w~th whlch smd land as pooled hereunder
4 Royalty As royalty, LESSEE covenants and agrees to pay
a As a royalty on oll 0nehidlng all hydrocarbons produced an hqmd form at the
mouth of the well and also condensate, d~stdlate, and other liquid hydrocarbons recovered
from ml or gas nm through a separator or samalar eqmpment) one-fifth (1/5) of the gross
productmn or the market value thereof, at the optaon of LESSOR, the value to be
determined by (0 the highest posted price, plus premaum, ~f any, offered or prod for off,
condensate, dastdlate, or other hqmd hydrocarbons, respectavely, of a lake type and
grawty for the field where produced and when mn, or (u) the haghest market price offered
or pa~d for the field where produced and when run LESSEE agrees that before any gas
produced from the land is sold, used or processed in a plant, at w~ll be run, free or cost to
the part, es entitled to royalties, through an adequate off and gas separator of conventional
type or other equipment at least as efficient to the end that all hqmd hydrocarbons
recoverable from the gas by such means will be recovered Upon written consent of the
royalty owners, the requirement that gas be nm through a separator or other eqmpment
may be wawed upon terms and conditions as prescribed by them
b As a royalty on any gas, which is defined as all hydrocarbons and gaseous
substances not defined as od m subparagraph 4 b above, produced from any well on the
land (except as provtded m th~s Lease w~th respect to gas processed in a plant), one-ill'th
(1/5) of the gross productxon or the market value thereof, at the optaon of LESSOR, the
value to be based on the highest market price paid or offered to a third party LESSEE
under a gas purchase agreement negotiated at arms' length for gas of comparable quality
and quantaty an the general area where produced and when nm, or the gross price prod or
offered to the producer, whmhever as greater
c As a royalty on any gas processed in a plant, one-fifth (1/5) of the residue gas and
the hqmd hydrocarbons extracted or the market value thereof, at the option of LESSOR
The royalty percentage shall be applied to 100% of the total plant production of resadue
gas attributable to gas produced from this Lease, and on 50% or that percent accruing to
LESSEE, whichever is greater, of the total plant production of hqmd hydrocarbons
attributable to the gas produced from this Lease, except ~f liquid hydrocarbons are
642660 2/5p3/29121/0103/011602 2
recovered from gas processed in a plant in which LESSEE or an affiliate owns an
interest, then the royalty percentage for liquid hydrocarbons shall be 50% or the highest
percent accrmng to a third party processing gas through the plant under a processing
agreement negotiated at arms' length The respective royalties on residue gas and on
hqmd hydrocarbons shall be determined by 0) the highest market price prod or offered
for any gas (or hquld hydrocarbons) of a comparable quality in the general area or (n) the
gross price prod or offered for such residual gas, or the weighted average gross selling
price for the respective grades of hqmd hydrocarbons, F O B the plant ~n which the gas
is processed, whichever is greater
d On all substances, ~nclud~ng, but not llunted to carbon dioxide and sulfur,
permitted to be produced from the land by virtue of th~s Lease, and products, except
liquid hydrocarbons, produced or manufactured from gas, and for which no royalty is
otherwise specified in th~s Lease, LESSOR shall have and be entitled to the royalty
percentage of that produced or saved to be delivered to LESSOR, free of all costs, or, at
the option of LESSOR, which may be exercised from time to time, LESSEE shall
account to LESSOR for the royalty percentage of the market value thereof, which market
value shall be deemed to be the greater of (1) the highest market price of each product for
the same month in which the product ~s produced, or (n) the average gross sale price of
each product for the same m
e Accounting and payment to LESSOR of royalties from the production of oil and
gas from any well shall commence no later than ninety (90) days after the date the well
commences first production Thereafter, all accountings and payments of royalties shall
be made on or before the last day of the calendar month following the calendar month in
wtuch the production occurred Should LESSEE at any time fad to make royalty
payments to LESSOR on or before the last day of the third calendar month following the
calendar month m which the production occurred, this Lease shall automatically
terrmnate unless the payments are made within thirty (30) days after written notice is
g~ven to LESSEE Any royalties provided for ~n this Lease which are not prod to
LESSOR within the applicable time periods spemfied ~n ttus paragraph shall accrue
interest at the same rate as judgments under the laws of the State of Texas from due date
until prod Acceptance by LESSOR of royalties which are past due shall not act as a
wmver or estoppel of LESSOR'S right to receive or recover any and all interest due
under the promslons of thru paragraph unless the written acceptance or acknowledgment
by LESSOR to LESSEE expressly so provides LESSEE shall pay all reasonable
attorney's fees incurred by LESSOR ~n connection with any lawsuit in which LESSOR ~s
successful m recovenng royaltms or interest or ~n terminating thru Lease due to
LESSEE'S fmlure to pay royalties wlthm the periods set forth above
LESSOR'S royalty shall never bear, either directly or ~ndlrectly, any part of the costs or
expenses of producing, gathenng, dehydrating, compressing, transporting, manufactunng,
processing, treating or marketing of the oll or gas from the land, nor any part of the costs of
constructing, operating or deprec~atmg any plant or other facd~t~es or eqmpment for procesmng
or treating oil or gas produced from the land
5 Shut-In Gas If LESSEE dnlls a well on land covered by th~s Lease or on land which
the LESSOR has permitted to be pooled herewith, which well ~s capable of producing gas but
6426602/$P3/291~1/0103/011602 3
such well is not being produced, and this Lease is not being malntmned otherwise as provided
here~n, this Lease shall not terminate, whether it being during or after the Primary Term (unless
released by LESSEE) and it nevertheless shall be considered that oil and gas is being produced
from the land covered by th~s Lease When, at the expiration of the Primary Term or any time or
times thereafter, the Lease is continued ~n force in this matter, LESSEE shall pay or tender as
royalty to the parties who at the t~me of such payment would be entitled to receive royalty
hereunder if the well ~s producing, or deposit directly with LESSOR at its address shown herein,
a sum equal to Twenty-five and No/100 Dollars ($25 00) for each gross acre of land subject to
this Lease at the t~me such payment xs made The first payment of such sum shall be on or
before the first day of the calendar month at the expiration of mnety (90) days from the date the
Lease is not otherwise mmntamed, and thereafter subsequent payments may be made at annual
intervals LESSEE'S failure to pay or tender or properly or t~mely pay or tender such sum as
royalty shall render LESSEE hable for the amount due and shall operate to terminate this Lease
automatically
6. Limit of Shut-In Notwithstanding anything to the contrary ~n th~s Lease, it is expressly
agreed and provided that tlus Lease cannot and shall not be extended beyond the Primary Term
by reason of the shutqn well prowmons of Paragraph 5 for any single period of more than two
(2) consecutive years or more than three (3) years ~n the aggregate
7. Poolln~ Pooling for oil or gas is expressly denied without the written consent of
LESSOR Further, LESSEE is demed the right to seek, or consent to, or partm~pate in the forced
pooling of any part of the land under the Texas Mineral Interest Pooling Act and any and all
amendments thereto or any other pooling or umtlzatlon statutes of the State of Texas wathout
LESSOR'S written consent which will not be unreasonably withheld
8 Termination
a If, at the expiration of the Pnmary Term, LESSEE is not engaged in the actual
dnlhng of a well on the land or ~f LESSEE has completed or abandoned a well on the
land within thirty (30) days pnor to expiration of the Primary Term and is not, at the
expiration of mnety (90) days after the date or completion or abandonment of the well,
engaged in the actual dnlhng of another well on the land, this Lease shall then terminate
as to all of the land, save and except the following
Each well producing oil or being reworked, and classffied as an ml well under the
rules and regulations of the Railroad Commission of Texas, together with forty
(40) acres around each such well (an "Oil Unit")
Each well producing gas (or capable of producing gas with all shut-in royalty
having been prod thereon) or being reworked, and classified as a gas well under
the rules and regulations of the Railroad Commission of Texas, together with the
one hundred sixty (160) acres w~th the option to go to 40-acre spacing around
each such well (a "Gas Unit")
b Each Oil Unit or Gas Unit shall be in as near the form of a square as reasonably
practmable consldenng the boundary of the land and the necessity of a legal locatmn of
the well on the unit Notwithstanding the foregoing, ~f the Railroad Commission of
642660 2/Sp3/29121/010:1/011602 4
Texas or other authority having jurisdiction, by rule or order prescribes a larger or a
smaller number of acres for the purposes of securing the maximum allowable productmn.
each unit shall be increased or decreased in size as necessary to conform to the number of
acres prescnbed by the rule or order, but if the rule or order prowdes for or penmts
optxonal sized tracts or spacing, the unit shall be the smallest tract permitted by the rule or
order
c If. at the expiration of the Primary Term. LESSEE ~s engaged in the actual dnlhng
of a well on the land or ~f LESSEE has completed or abandoned a well on the land w~thin
thlrty (30) days prior to expiration of the Primary Term and is. at the expiration of ninety
(90) days after completion or abandonment of the well. engaged ~n the actual dnlhng of
another well on the land. this Lease shall not terminate so long as LESSEE pursues the
drilling of the well with reasonable diligence to completion or abandonment and so long
as LESSEE commences the actual dnlhng of additional and successive wells on the land
at ~ntervals not exceeding ninety (90) days between completmn of a well as a producer or
dry hole and commencement of actual dnlhng of the next well on the land If and when
LESSEE fmls to commence the actual dnlhng of a well w~thln the apphcable ~nterval (or
within the extended t~me promded ~n subparagraph 9 d below, th~s Lease shall then
terminate to all of the land. save and except the Oil Umts and Gas Umts provided in
subparagraph 8 a above Upon expiration of the Primary Term or the cessatmn of the
contnnuous dnlhng program set forth herein, whmhever ~s later, th~s Lease shall also
tenmnate as to all depths below each unit retmned as to depths below a depth of one
hundred feet (100') beneath the deepest producing horizon or zone for each unit
d If LESSEE. ~n the conduct of actual dnlhng operations under this Lease after the
expiration of the Primary Term. commences the actual dnlhng of any next succeechng
well w~thm less than the mnety (90) day t~me interval specffied in subparagraph 8 c and
thus speeds up the development of the land. LESSEE shall have credit ~n time for the
accelerated development and may. in the conduct of subsequent actual dnlhng
operations, take advantage of the credit m time on a cumulative basis and thus extend the
t~me for the commencement of actual dnlhng of any subsequent well or wells reqmred to
be drilled under the provisions of thru Lease ~n order to prevent termination of tins Lease
W~thln ten (10) days of the commencement of the actual dnlhng of each well on the land.
LESSEE shall give LESSOR written notice of the date of commencement W~thln ten
(10) days after the completion or abandonment of each well on the land. LESSEE shall
g~ve LESSOR wntten notme of the date of completion or abandonment and also of the
t~me credit. ~f any clmmed by LESSEE as a result of having commenced the actual
drilling of the well within less than the reqmred ~nterval If LESSEE fads to t~mely so
not~fy LESSOR ~n any of these respects. LESSEE shall not be entitled to any credit ~n
t~me for accelerated development Nothing contmned in th~s paragraph shall relieve
LESSEE of any offset obhgatlon arising by ~mphcat~on or under the terms of thru Lease.
but any well dulled by LESSEE to satmfy an offset obligation will entitle LESSEE to the
pnvdeges of this paragraph
9 Removal of E~lumment LESSEE shall have the right at any time dunng and for one
hundred e~ghty (180) days after the expiration of thru Lease to remove all property, casing and
fixtures placed by LESSEE on said land. ~nclu&ng the right to draw and remove all casing
Thereafter. it shall be deemed abandoned to LESSOR If LESSEE fmls to remove such property.
642660 2/s,s/29n~/0~03/0~60~ 5
casing and fixtures within such 180 day period, ownership of the same will vest in LESSOR,
LESSOR'S successors and assigns or LESSOR, at its option, may require the removal of smd
equipment in addition to all other remedies to which LESSOR is entitled under law
10 ASsignment. The rights of either party hereunder may be assigned in whole or in part,
and the provisions hereof shall extend to their respective heirs, successors and assigns, but no
change or division in ownerstnp of the land, rentals or royalties, however accomplished, shall
operate to enlarge the obligations or diminish the nghts of LESSEE
11 TRIo LESSOR does not warrant or agree to defend the title of the lands covered hereby
LESSEE takes this Lease without warranty of title either express or implied Ttus Lease and the
actlvltmS to be conducted thereunder are subject to approval of the Federal Aviation
Administration If LESSOR owns an interest m the oil, gas and minerals leased hereby less than
the entire fee simple estate, then the royalties, or other monies accruing from any part of the land
to wluch this Lease covers less than such full interest shall be paid to LESSOR only in the
proportion which LESSOR'S interest therein, if any, bears to the whole and undlvtded fee simple
mineral estate therein It is the sole responsibility of LESSEE to determine the LESSOR's
mineral interest The bonus payment prod for this Lease shall be deemed to be final if no title
problems are submitted for resolution within ninety (90) days of the Effective Date
12 Force Majeure When dnlhng, production or other operations on smd land or land
pooled with such land, or any part thereof are prevented, delayed or interrupted by fire, storm,
flood, war, rebellion, insurrection, sabotage, not, strike, or as a result of some law, order, rule,
regulation or necessity of governmental authority, either State or Federal, the Lease shall
nevertheless continue in full fome and effect and be extended for the penod such drilling,
production and other operations are so prevented, delayed or interrupted LESSEE shall not be
liable for breach of any express or implied covenants of this Lease when dnlhng, production or
other oporattons are so prevented, delayed or interrupted, except that nottung in ttus paragraph 13
shall be construed to suspend the payment of delay rentals, shut-in royalty or any other amount
otherwise required to mmntmn this Lease an effect
13 Designation of Gas Unit
a Upon completion of the first well as a producer of oil and/or gas in paying
quantities (whether the first or a subsequent well drilled), LESSEE shall designate an
approximately sized dnlhng unit around said first producing well, all out of the above
described property, by filing a written designation m the Deed Records of Denton County
Texas and shall provide LESSOR with a copy of such umt designation
b If a second well ~s completed as a producer of gas in paying quantities, LESSEE
shall again designate an approximately sized dnlhng unit around said second producmg
well, all out of the above described properts, by fihng a written designation m the Deed
Records of Denton County, Texas and shall provide LESSOR with a copy of such unit
designation LESSEE shall designate all dnlhng umts in a fair and reasonable manner so
that the remaining acreage not included m the dnlhng units is capable of being drilled or
pooled with other lands
642660 2/SP3/29121/0103/011602 6
All designations ofumts as provided in this paragraph 14 shall be In accordance with and subject
to the provisions of paragraph 9 above
14. Road Construction: If LESSEE completes a well as a producer, LESSEE agrees to
construct a good and substantial road to said well at least twenty (20) feet in width, and with base
material equivalent to Texas Highway Department No 1 flexible base material and being six (6)
inches m depth and built for proper and natural drainage LESSEE agrees to enter into a Road
Mantenance Agreement with the City of Denton for damage to the road as a result of LESSEE'S
activities
15. FAA Rules and Regulations: No drilling activity or any other activity shall be
conducted on any pomon of the above described land m contravention of any Federal Aviation
Administration ("FAA") rule or regulation or which interferes with any future expansion plan for
runways or taxlways LESSEE shall make lnqmry with the proper officials of the FAA and
obtain all necessary approvals, consents or waivers prior to the location of any drill site on the
subject property to verify compliance with all applicable FAA rules or regulations LESSEE
shall provide LESSOR with copies of all wavers or other documentation issued by the FAA
indicating approval of well site locations or any other operations prior to the commencement of
operations
16 Indemnifications and Insurance LESSEE shall provide or cause to be provided the
insurance descnbed below for each well drilled under the temas 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-msured, 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 Indemnification and Express Negligence Provisions
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, agamst the LESSOR, it agents, officers, servants, successors, assigns,
sponsors, volunteers, or employees, created by, or arising out of personal injuries, known
or unknown, and injuries to property, real or personal, or m any way incidental to or m
connection with the performance of the oil and gas dnlhng and production performed by
the LESSEE under this lease and the LESSEE shall fully defend, protect, indemnify, and
hold harmless the LESSOR, and/or its departments, agents, officers, servants, 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 recurred m defense of the LESSOR,
and/or its departments, agents, officers, servants, or employees, mcludmg, without
limitation, personal mjunes and death m connection therewith which may be made or
asserted by LESSEE, its agents, assigns, or any third parties on account of, ansmg out of,
or in any way incidental to or in ColmeCtlOn w~th the performance of the oll and gas well
dnlhng 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 ~ts
officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from
any liabilities or damages suffered as a result of claims, demands, costs, or judgments
against the LESSOR and/or, its departments, it's officers, agents, servants, or employees,
642660 2/S1)3/29121/0103/011602 7
created by, or arising out of the acts or omissions of the LESSOR occumng on the dnll
s~e or operation site m the course and scope of inspecting and penmttmg the gas wells
INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN
WHOLE OR IN PART FROM THE NEGLIGENCE OF THE LESSOR OCCURRING
ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF ITS
DUTIES UNDER THIS LEASE IT IS UNDERSTOOD AND AGREED THAT THE
INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED
BY THE LESSEE TO INDEMNIFY AND PROTECT THE LESSOR AND/OR ITS
DEPARMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES FROM THE
CONSEQUENCES OF THE NEGLIGENCE OF THE CITY OF DENTON, TEXAS
AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR
EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR
CONTRIBUTING CAUSE OF THE RESULTANTANT INJURY, DEATH, AND/OR
DAMAGE
b All pohmes shall be endorsed to read "THIS POLICY WILL NOT BE
CANCELLED OR NON-RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN
NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLICY IS
BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE 10
DAYS ADVANCE WRITTEN NOTICE IS REQUIRED"
c Lmblhty pohc~es shall be written by earners licensed to do business ~n Texas and
w~th compames with A VIII or better rating m accordance with the current Best Key
Rating Guxde, or w~th non-admitted careers that have a financial rating comparable to
carners heensed to do business m Texas approved by the City
d Lmbfllty pohmes shall name as "Additional Insured" the city and its offimals,
agents, employees, and volunteers
e Certfficates of insurance must be presented to the C~ty evidencing all coverages
and endorsements required by this Section 35-508, and the acceptance of a certificate
w~thout the reqmred hm~ts and/or coverages shall not be deemed a wmver of these
reqmrements
f Claims made pohc~es will not be accepted except for excess pohc~es or unless
otherwise prowded by th~s Article
g Required Insurance Coverages
1 Commercml General L~abfllty Insurance Coverage should be a m~mmum
Combined Single L~mlt of $1,000,000 per occurrence for Bodily InJury and
Property Damage Th~s coverage must include premises, operations, blowout or
explosmn, products, completed operations, blanket contractual habdlty,
underground property damage, broad form property damage, independent
contractors protective liability and personal ~njury
642660 2/SPS/29121/0103/011602 8
2 Environmental Impmrment (or Seepage and Pollution) shall be either
included m the coverage or wntten as separate coverage Such coverage shall not
exclude damage to the lease site If Environmental Impairment (or Seepage and
Pollution) Coverage is written on a "clmms made" basis, the policy must promde
that any retroactive date applicable precedes the effective date of the issuance of
the permit 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 lmtants, contaminants or
pollutants
3 Automobile Liability Insurance Minimum Combined Single Limit of
$500,000 per occurrence for Bodily Injury and Property Damage Such coverage
shall include owned, non-owned, and hired vehicles
4 Worker's Compensation Insurance In addition to the minimum statutory
requirements, coverage shall include Employer's Liability limits 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 wmve rights of
subrogation agmnst the city, its officials, agents, employees, and volunteers for
any work performed for the city by the LESSEE
5 Excess (or Umbrella) Liability Insurance Mlnlmnm limit of $10,000,000
covenng in excess of the preceding insurance pohcles
6 Control of Well Insurance
a Mlmmum hmlt of $5,000,000 per occurrence
b Policy shall cover the Cost of controlling a well that is out of
control, Rednlhng or Restoration expenses, Seepage and Pollution
Damage Damage to Property in the LESSEE's Care, Custody, and
Control with a sub-limit of $500,000 may be added
17 Offset Well Requirement. In the event a well or wells produmng oil and gas in any
quantities that should be brought in by LESSEE or any other LESSEE on adjacent lands and
wltlun 330 feet of the land or lands pooled, by permission of LESSOR, with such lands, LESSEE
agrees to drill such offset wells as a reasonably prudent LESSEE would drill under the same or
similar mmumstances
18 L~eation of Drilhng Act~wt~ Pipelines and Equipment No dnlhng activity shall be
conducted on and no pipelines, equipment or other structures shall be placed on or under any
pavement, concrete or asphalt or any other improved surface area situated on the above described
land The location of any p~pelmes installed by LESSEE shall be approved in advance by
LESSOR and shall be situated along routes that least interfere with LESSOR's existing or future
use of the surface in accordance w~th the Surface Use Agreement When required by LESSOR,
LESSEE will bury all pipelines at a depth of six feet (6'), and the location of wells shall comply
w~th Chapter 29, Fire Code, of the Code of Ordinances of the City of Denton, as amended, and
all other apphcable laws
642660 2/SP3/29121/0103/011602 9
19. Construction of Fences' Should production be obtained, LESSEE shall promptly
construct a good and substantial fence, equivalent to at least a s~x (6) foot chain hnk fence (man
proof), enclosing the well and related equipment and thereafter maintain such fence in good
cond~t~o~ during the hfe of the well and until such t~me as the surface ~s restored to ~ts present
condition LESSEE agrees to properly maintain thc fenced area m good condition, incluchng,
w~thout llmltat~un, the mowmg of grass ~n accordance w~th the Surface Usc Agreement
20 Surface Damages' LESSEE agrees to pay for ali actual damages caused by LESSEE's
operations hereunder to fences, roads, personal property, underground ut~ht~es and services,
bmldings or other ~mprovements on said land W~thm a reasonable t~me after LESSEE's need
therefor has ceased, LESSEE shall remove the leasehold debris, fill all ~ts and other excavations
made by LESSEE on the above described land, and restore the surface of the land to its condition
pr]or to the conunencement of dr]lhng operations insofar as may be reasonably practical
21. Compliance with Laws LESSEE shall comply w~th all applicable roles, regulations,
ordinances, statutes and other laws m connection with any drilling, producing or other operations
under the terms of this Lease, lneluchng, without limitation, the oil and gas well regulations of
the City of Denton
22 Lease Assignment The assignment of th~s Lease by LESSEE, or any successor
LESSEE, shall not relieve LESSEE, or any such successor, from its obligations hereunder
LESSOR may, unless ~t agrees to the contrary, look to the LESSEE and/or any successor of
LESSEE for performance of any one or more of such obligations
23. Water: LESSEE shall not use any water in, on, or under the above-described land,
except In accordance w~th the Surface Use Agreement
24. Diligent, Good Faith Operations. Each well drilled under this Lease shall be drilled
w~th reasonable diligence and in good faith and in a good and workmanhke manner m a bona
fide attempt to product oil, gas and associated m~nerals therefrom
25. Captions and Headings' The captions and headings m th~s Lease are for convemence
only and shall not modify, change, amend, alter, or affect the tree meamng of any paragraph,
sentence, clause, phrase, or words hereto
26 Subordination and Stipulations Required by FAA. Th~s Lease recognizes that thc
Denton Municipal Airport was aeqmred and developed with a~d and/or grant of land from the
Umted States Copies of such grants are available for rewew at the office of the Ctty Manager m
Denton These grants include a number of obhgat~ons and commitments to the general and
flymg public, to the State of Texas, and to the Umted States In addition to the above general
obhgat~ons and commitments, this Lease ~s subject and subordinate to and ~s controlled by all thc
prows~ons, stipulations, covenants, and agreements m that certam indenture by and between the
Umted States of America and the LESSOR and ~t is understood that the LESSEE agrees to ab~de
by and enforce all of the provisions, stipulations, covenants, and agreements incorporated in the
foregomg mstnunent the same as if set out ~n full herein This Lease ~s subject to approval by
the FAA and shall be effective only as of the date of such approval The following agreemems
and understandings are specifically enumerated to comply wlth FAA stipulations
642660 2/SP3/29J.21/0103/Ol1602 10
a It ~s further especmlly agreed by the parties hereto that no structures or
obstructions, temporary or otherwise, shall be erected whmh will be m v~olat]on of the
Federal Avmt~on Regulations Part 77 (Cntena for Determunng Obstract~ons to A~r
Navigation), unless otherwise approved an writing by the FAA
b Without the prior spec]tic approval of the FAA no surface operations shall be
conducted upon any of the lands covered by this Lease closer than the d~stances set forth
m the sub-paragraph above, or within the safety areas of smd ~mprovements, including
~ngress and egress of vehmu~lar traffic
c It Is specffically understood and agreed that the LESSEE and tts successors and
assigns shall g~ve to the City of Denton and the FAA, notice in wrmng of the location of
any contemplated well and the route of ~ngress and egress to such well on the above-
described land and that ff neither the FAA nor C~ty of Denton objects to smd location
w~thm a period of thirty (30) days from the receipt of written notice thereof, the smd
LESSEE and Its successors and assigns may proceed to drill the well at the location
specffied m smd notme, prowded same does not contravene other prov]s~ons of this Lease
or the further restrictions and obhgatmns imposed by the C~ty of Denton
d Th~s written notme shall not rehve the LESSEE from obhgat~on for fihng a Notme
of Proposed Construction or Alteration, FAA Form 7460-1, reqmred by Federal Awatmn
Regulattons, Part 77, Subpart B
e Also It is agreed, that In the event a well ~s drilled on the above-described land,
then such drflhng operations shall be prosecuted continuously, wtth due diligence, until
same results m product]on or a dry hole All temporary structures used m such dnlhng
operations shall be painted and hghted In such a manner as prescribed by the FAA, and
further promded that no permanent structures of any k~nd used in the development,
product]on or transportation of off, gas and other minerals shall be placed on the above
described land In such manner as to interfere with or ~ntroduce hazard to the operation of
the mrcraf~
f Further, tt ~s agreed that in the event any dnlhng operations for off, gas, or other
minerals result m productmn, LESSEE at ~ts own expense shall ~mmedmtely remove all
temporary structures and place all sem~-permanent or permanent eqmpment ~n such
manner as will not interfere w~th or introduce any hazard to the operation of mrcraft In
event such dnllmg operations result in a dry hole, then LESSEE shall at ~ts own expense
immediately remove all temporary structures used m such landing operation and level the
area so that it may be safely used for landing or taxnng mrcraft
g, LESSEE shall not ~nterfere w~th the access roads to the C~ty of Denton Airport,
and shall not ~nterfere with any other person or agency having a lawful right to use the
above-described land, or w~th any building or improvements of any kxnd thereon
belonging to any other person or agency, nor w~th their right to enter thereon and remove
smd bulldmgs or ~mprovements therefrom
6426602/SP3/29~21/0103/011602 11
h Dunng t~me of war or nataonal emergency, LESSOR shall have the right to lease
the landing area or any part thereof to the Umted States Government for mthtary or naval
use, and if such lease ~s executed w~th the Umted States Government, the provisions of
th~s Lease insofar as they are inconsistent w~th the prowsmns of the Lease to the
Government, shall be suspended
27 Memorandum of Lease LESSOR and LESSEE agree that a memorandum of lease
shall be filed of record in the Official Records of Denton County, Texas, evldenmng this Lease
and the provisions eontmned m such memorandum to the part~es hereto, the land covered by the
Lease, the term of the Lease and not~ce provisions informing the public of the existence of the
Lease
28. Entire Agreement. Th~s Lease states the entire contract between the pames, and no
representation or promise, verbal or written, on behalf of either party shall be b~ndmg unless
contmned herein, and th~s Lease shall be binding upon each party executing the same, regardless
of whether or not executed by all owners of the above described land or by all persons above
named as "LESSOR", and, notwithstanding the inclusion above of other names as "LESSOR",
thru term as used m tins Lease shall mean and refer only to such part~es as execute this Lease and
thmr successors ~n interest
1N WITNESS WHEREOF, this instrument ~s executed on the date first above written
c-I~ICH~EL A C/(~!DL{FF"~/I~ MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
642660 2/SP3/29121/0103/011602 12
CORPORATION
NOELE IL~TF~E~R, PKESIDENT
6426602/$p3/29121/O103/0116O2 13
STATE OF TEXAS §
COUNTY OF DENTON §
Before me the undersigned authority, on this day personally appeared Michael A
Conduff, City Manager of the C~ty of Denton, Texas, known to me to be the person whose name
subscribed to the foregoing instrument and acknowledged to me that he/she executed the
mstrmnent for the purposes and consideration there~n expressed
Criven under my hand and seal ofoffice thls C'] dayof ._~c~,x~ ,2002
CHRI$1'fNE A DICK
Notary Public
State ot I'exm
C~mm Exl~res 3 2 2005 Notary Pubhc
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned authority, on this day personally appeared C Noell Rather,
PRESIDENT OF ENEXCO, INC, known to me to be the person and official whose name ~s
subscribed to the foregoing instrument and acknowledged to me that he/she executed the
~nstrument for the purpose and consideration thereto expressed
Glven under my hand and seal ofoffice th~s ~-I dayof-'~a~,.)~kt~, ,2002
CHrIsTINE A DICK Notary Pubhc
~Te of Texm
,,-,,,mm 3*2 2005
642660Z/$P3129121/O1031011602 14
EXHIBIT C
S \Our Documents\Contracta\02\Redhn¢ Enexco Surface Use Agreement doc
SURFACE USE AGREEMENT
CITY OF DENTON AIRPORT
Thru Agreement is made and entered ~nto effective this 17th day of January, 2002, by and
among ENEXCO, INC whose address is 3500 Oak Lawn Avenue, Suite 390, Dallas,
Texas 75219 (Operator") and the CITY OF DENTON, TEXAS, a home role municipal
corporation, acting by and through ~ts duly authorized C~ty Manager ("City"),
WHEREAS, Operator owns the right to explore the lands described as follows
TRACT 1 The land described m condemnation proceedings ~dent~fied by Cause
No 3922 filed on November 30, 1943 between the C~ty of Denton and RM
Evers, et al and subsequently filed m Volume 1675, Page 546 of thc Real Property
Records of Denton County, Texas, contmmng 147 26 acres, 2 26 acres of which m
m a pubhc road, in the W~lham W~lbum Survey, Abstract Number 1419
TRACT 2 The land described ~n that Warranty Deed dated December 23, 1943
between P T Underwood and w~fe J~mm~e Underwood and the City of Denton
recorded m Volume 304, Page 503 of the Real Property Records of Denton
County, Texas, contalmng 74 94 acres, 1 75 acres of which is in a public road, ~n
the Thomas Toby Survey, Abstract Number 1285
TRACT 3 The land described m that Warranty Deed dated January 18, 1944
between Mrs Ellen Pearl Corbln, a w~dow, Hugh C Corbm and wife, Sue Lou
Corbln, John S Corbm, Alice Corbm Brown and husband W O Brown, Grace
Corbm, a feme sole, Georgia Corbln, a feme sole, James E Corbm and w~fe,
Johnme Corbln, Mrs Gertle Corbm Hurst and husband, G E Hurst, and the City
of Denton, recorded m Volume 305, Page 216 of the Real Property Records of
Denton County, Texas, contmmng 331 94 acres, 2 61 acres of which m ~n a pubhc
road, m the Wm Smith Survey, Abstract Number 1188, and the Wm Nedl
Survey, Abstract Number 970
Denton County, Texas ("the Lands") for oil and gas operations, and
WHEREAS, Operator and C~ty desire to enter ~nto an agreement regarding Operator's
use of the Lands for ~ts proposed od and gas operations thereon ~n connection w~th
Operator's wells to be located at a surface location and drilled to a projected vertical
depth pursuant to the O~1, Gas and M~neral Lease of the C~ty of Denton A~rport (the
"Well")
NOW, THEREFORE, ~n conmderatlon of the premises and the covenants set forth below,
Operator and C~ty agree as follows
1 In connection with the Well, and pursuant to the terms and Prowstons herein after
contmned, Operator shall have the nght
(a) to construct and use a dnlhng pad locatmn and related drllhng and mmulatlon
p~ts on the Land on which such Well ~s to be s~tuated (the "S~te") for the
purposes of dnlhng for, eqmpp~ng, operating and producing o~1, gas and other
mmerals from the Well (lncludmg, but not hmlted to, the ~nstallat~on and
mmntonance of a tank battery, heater treater, separator, and other equipment
on the drilling pad), and
(b) to ~nstall flowhnes and p~pehnes to and from the S~te, to ~nstall electric poles
on the Site
2 Drilling Operations For purposes of th~s Agreement, the dnlhng pad shall be
constructed m the approximate chmens~ons and configuration depicted on a gas well
development plat as approved by the C~ty No well shall be drilled w~thm 500 feet of
any structure on the land without the written consent of the City Manager or h~s
das~gnee Dunng dnlhng operations, the perimeter of the drill site shall be fenced by
Operator at ~ts sole expense with a fence sufficient to mm livestock, thereafter, in the
event of production, smd fence shall be mmntmned around the perimeter of the well
site and tank battery area actually utlhzed by Operator Operator shall use only the
entrances and roadways for entenng upon and leaving the land and will use only the
routes m going upon, over or about the land as are designated by C~ty ~n wntmg for
Operator's use in accessing the drill s~te Operator shall access the S~te d~rectly from
A~rport Road, and that Operator shall construct roads to the S~te as depmted on the
gas well development plat approved by the C~ty Operator shall maintain all roads,
existing or new, used by Operator ~n good repmr free of rocks and ruts to the
reasonable satisfaction of C~ty Annual maintenance must ~nclude, as a mlmmum,
addition of at least two ~nches of callche and motor grading Operator will construct
diversion terraces as may be reasonably necessary to prevent stol erosion Use of
roads shall be confined to lease operations and to the use of the City and Surface
tenants Operator shall never obtain or assist anyone to obtain or have designated a
pubhc road across the land Operator may open new roads only upon written
concurrence of C~ty noted upon a survey plat of the road showing its location and a
legally sufficient centerhne description All new roads shall be strmght and parallel
to survey hnes to the extent the terrain permits No lntenor gate or opening in the
fence shall be constructed so as to access any other part of the Land from the S~te or
rectangular area described m th~s paragraph w~thout Ctty's consent All travel shall
be confined to roads and no off-road travel is permitted unless written permission is
obtained from the Airport Manager and the property restored to the same condition
3 Refineries prohibited Operator ~s prohibited from constructing an otl or gas
refinery or a plant for cleaning up gas or removing H2S on the leased premised
Page 2
without first obtaining a separate written lease agreement with City The location of
separators, dehydrators and compressors shall not be considered as plants
4 Compensataon An annual rental for a 40 x 40 well site (16,000 square feet) at $ 05
per square foot for any well sites located on the west side of the lands or at $ 08 per
square foot for any well sites located on the east side of the lands shall be paid to the
City as compensation for the use of the surface This annual rental shall be adjusted
every two years according to the Consumer Price Index The annual rental payment
shall be payable to the City of Denton pnor to the start of construction of each well
site and on each year anniversary thereafter until the well is abandoned and plugged
5 No water wells may be drilled on the property
6 Notification Operator shall notify City at least 3 days, exclusive of Saturdays,
Sundays and legal hohdays, prior to commencement of all exploration, dnlhng,
hlghlme or pipeline construction operations on the land, spemfylng the approximate
date of commencement, and the nature and location of the operataons No facthtles
required for any operation permitted under this lease shall be commenced, placed,
erected or constructed until City and Operator have conferred and mutually selected
the site or sites for location of the facilities, taking into consideration the use of the
land for mrport operations
7 Plpehnes and l*lowllnes. Prior to constructing pipelines and flowhnes on the Lands,
Operator shall consult with City so that the papehnes and flowhnes shall be located,
insofar as reasonably practical, to cause m~mmum interference with City's surface
operations and use of the land Pipelines and flowllnes shall be hmlted to natural gas
transported through such plpehne to natural gas produced under the terms of the lease
from the leased premises Operator agrees that all flowhnes and gas sales plpehnes
shall be constructed as near as practical to public right of ways and shall be buried
to a depth as the Citw determines or as may be required under appheable laws,
including FAA rules and regulations A plot plan showing proposed pipelines shall
be filed with the Director of the Airport "As built" plans shall be filed with the
Director of the Airport on completion Operator shall place pipelines and flowhnes
with the ingress easements to the well sites and shall obtain an easement from the
City Compensation for the easement shall be $10/rod (16 feet) Operator shall
remove pxpelines or flowllnes after the well is abandoned or shall make the p~pelines
and flowhnes dormant as requested by the Cxty
8 Abandonment of Wells At Operator's cost, Operator agrees to conduct a
gammaray neutron log survey from the surface to the bottom of the surface casing of
any well drilled on leased premises by Operator in order to assist City m determining
whether water sands have been encountered to such depths Operator shall provide
Page 3
City or City w~th a copy of such log and, w~thout any warranty whatsoever,
Operator's op~mon as to whether such log ~ndmates water beanng sands and ~f so, the
location or depth thereof Pnor to abandomng a well, Operator agrees to g~ve C~ty
prior notme of such intended plugging and C~ty shall have twenty (20) days after
not,ce w~th~n whmh to elect to take over such well for completmn as a water well If
C~ty elects to take over same, Operator shall plug such well to the depth designated
by C~ty and thereafter Ctty shall own such well together w~th the obhgat~on to plug
the remammg, unplugged port~on of such well when C~ty abandons same Ctty
agrees to execute the appropriate forms reqmred by the Rmlroad Commission of
Texas and other regulatory authority ~n order to transfer operations and ownership of,
as well as habfi~ty for, such well to C~ty In the event C~ty dechnes to take over such
well, then Operator shall promptly plug same At each stage of Operator's
operations, Operator w~ll mmntam the s~te of operatmns m a neat, orderly, safe
condition, free of htter and free of all objects not reasonably necessary to the
operation Upon abandonment of any s~te, operation or road, Operator w~ll not~fy and
confer w~th C~ty, and except to the extent C~ty wmves, m wnt~ng, Operator's
obhgatmn to do so, the s~te or road w~ll be cleaned, all mounds will be leveled, and all
pits, p~t hners will be removed at the appropriate t~me and all ptts, ruts and other
excavations (after being allowed to dry out) will be filled, leveled and smoothed, all
cahche will be removed from the s~te or road w~ll be seeded w~th grass of C~ty's
choice and otherwise returned, as nearly as practtcal to ~ts natural state, all w~thm a
reasonable t~me
9 Penalties. In the event Operator fmls or refuses to pay C~ty for penalnes, clmms,
surface use or damages, as reqmred under th~s lease, w~th~n 30 days after same are
due, then Operator shall be reqmred to prowde City w~th security m the form of cash
m the sum of $10,000 00 payable to C~ty whmh sum may thereafter be apphed by
C~ty toward Operator's obhgattons for past unpmd, as well as future compensatmn for
penalties, clmms, surface usage and damages and on each occasion that Ctty apphes
all or a part of smd sectmty depom toward unpmd penalties, clmms or compensation,
Operator agrees to restore such security deposit to $10,000 00 If Operator falls to
make such $10,000 00 security deposit and/or mmntmn same, w~tfun 20 days after
notme from C~ty to tender same, then th~s lease shall terminate C~ty shall have a first
hen agmnst the leasehold ~nterest of Operator there~n to secure C~ty under the terms
of th~s lease and further th~s lease shall constitute a Security Agreement suffiment to
sattsfy the Umform Commercml Code of Texas to estabhsh a security ~nterest ~n th~s
leasehold estate for the benefit of C~ty to secure them m the event of default by C~ty
Unt~l such t~me as Operator breaches ~ts obhgat~on to t~mely perform under tfus lease,
C~ty agrees that all production and revenue attributable to the working xnterest
hereunder shall be temporarily exempt fi'om th~s hen Upon not,ce to C~ty of
Operator's breach of th~s or any other prows~on of th~s lease, whmh breach constitutes
an accrued but unpmd clmm owned by Operator to C~ty, then smd temporary
exemption shall be hfted and thts security interest and hen shall thereafter attach to all
production and revenue attributable to the working ~nterest under th~s lease
Page 4
10 Preferential Right to Sell. As part of the consideration for this lease, Operator
covenants and agrees that the owner of the surface estate shall have a first preferentml
right to sell C~ty or ~ts contractors or assignees, at the same prme and terms Operator
can obtain elsewhere, any water, sand, gravel or cal~che or any one of them, whmh
Operator or any of its successors, assigns, agents or independent contractors m~ght
need incidental to any exploration or development operatmns on leased premises
! 1 Place of Payment. All payments, compensation and damages which may be due and
payable to City shall be payable to the City to the C~ty Manager, 215 E McKmney,
Denton, Texas 7620! Payment shall ~dent~fy ~f thc payment ~s for the bonus, thc
royalty, delay rental, shut m rental, or annual rental payment for the well s~te
12 Environmental. As used ~n this lease, the term "Hazardous Matermls" means any
substance defined or identified as a hazardous, extra hazardous or toxic substance,
waste, or material under any applicable federal, state, or local statute or regulation
"Remedial Work" is defined as any site investigation or momtonng, any cleanup,
containment, remedial removal, or restoration work performed ~n response to any
federal, state or local government authority or private attorney general action, or
pursuant to any federal, state or local statute, role regulation or other laws Operator
agrees (1) to remove from the leased premises, if, as and when required by law, any
Hazardous Materials placed or released thereon by Operator, (2) to perform remedial
work where the need therefore arises m connectmn with Operator's operations or
activities on the leased premises, and (3) to comply ~n all respects w~th all federal,
state and local governmental laws and regulations govermng operations by Operator
and remedial work on or associated with the leased premises Such remedial work
shall be performed by one or more contractors selected by Operator and approved in
advance by City and under the supervision of a consulting engineer selected by
Operator and approved an advance by City All costs and expenses of remedial work
made necessary by Operator's operations shall be prod by Operator, ~nclud~ng,
without limitation, the charges of such contractors and/or the consulting engineer and
City's reasonable attorneys' fees and costs incurred ~n connection with the momtonng
or review of remedial work If Operator shall fall to timely commence or cause to be
commenced, or fml to diligently prosecute to completion, such remedial work, C~ty
may, but shall not be required to, cause such remedial work to be performed
Operator promises to notify City of any clmm or other action by any governmental
agency or other third party involving the actual or alleged existence of hazardous
materials on the leased premises or on City's adjolmng property and to prowde C~ty
with cop~es of (1) any notme of any release of Hazardous Materials gaven to Operator
pursuant to any law or regulation and (2) any report of and response to any such
incident Operator agrees to mdemmfy, pay and protect, defend and save City
harmless from all claims, llablht~es, fees and expenses of any k~nd that arise from the
actual or alleged presence or release any Hazardous Material ~n connection w~th
Operator's operators on the leased premises Th~s lndemmficat~on shall include costs
in connection with any remedial work when performed by C~ty or any third party m
response to any federal, state or local governmental authority, laws or regulations,
due and payable upon demand therefore by City
Page 5
13 Notices. Operator agrees to designate xn writing the name of the person or persons to
be present from time to txme on sa~d premises as current operations are being
conducted, with whom City may resolve any clmm for use, injury and damage to
airport operators surface area or improvements on smd premises occasioned by or
arising from Operator's operataons or other acuwty on the smd premises In regard to
notice of surface use, the City affected by such operations shall be entitled to prior
notice of such operations Either party hereto may from time to time designate ~n
writing a different address or agent The following persons are designated as each
party's untaal agent
To City
City Manager
Attn Airport
215 E McKlnney
Denton, Texas 76201
To Operator
C Noell Rather
Ralph E Rather
Enexco, Ine
3500 Oak Lawn, State 390, LB #15
Dallas, Texas 75219
14 Second/Tertiary Operations. Operator is denied the right and privilege of injecting
any substances rotc the subsurface for secondary or tertiary recovery operations
unless allowed under the gas well penmt
15 Memorandum of Agreements. Operator and City agree to execute a Memorandum
of this Agreement m the form attached as Exhablt "A" hereto, which may be recorded
m the records of Denton County, Texas
16 Assignment. This Agreement shall remain m effect for so long as the oil and gas
leases owned by Operator on the Lands are m force and effect, and be blndmg upon
and shall mure to the benefit of the parties hereto, their respecuve heirs, personal
representatives, successors and assigns
17 Indemnification. Operator shall indemnify and hold harmless and defend C~ty and
City's officers, agents and employees from all suits, actions, claims, damages,
personal injuries, accidental death, property damage, losses, and expense of any
character whatsoever including attorney's fees brought for or on account of any
injuries or damages received or sustained by any person or persons or property, on
account of any neghgent act of Operator, Operator's officers, agents and employees
whether such neghgent act was the sole proxtmate cause of the injury or damage or a
proximate cause jointly and concurrently with Operator or Operator's employees,
agents or subcontractors' negligence, m the execution, supervtston and operations
Page 6
growmg out of or in any way connected with this Agreement and Operator will be
reqmred to pay any judgment, w~th costs, whmh may be obtained agmnst City or any
of their officers, agents or employees, including attorney's fees
18 Insurance Operator shall file ewdence in the form of a certificate of insurance with
the City Secretary for the C~ty of Denton, acceptable to the City Attorney, that ~t has
obtained habfllty insurance m accordance with the Otl and Gas Mineral Lease, C~ty's
Gas Well Orchnance and w~th the City of Denton as an additional insured and
covenng its operations on the Lands Operator shall also file evidence ~n the form of a
certfficate of insurance w~th the City Secretary for the City of Denton, acceptable to
the City Attorney, that ~ts workers' compensation and general habthty coverage
includes in Its prows~ons a wmver of any rights of subrogation as agmnst the C~ty of
Denton, Texas m accordance w~th the City's Oil and Gas Regulations
19 Operator shall follow FAA roles and regulations prior to the commencement of
drilling operations under this agreement Operator shall file a aeronautmal study
request form (Form 7460) before commencing dnlhng operatmns and shall obtain all
prior consents, approvals or wmver of FAA regulations Operator shall mdemmfy
and hold C~ty harmless for any FAA orders requmng Operator to cease operations
20 Tlus agreement shall be construed under the laws of the State of Texas, without
reference to conflict of law pnnclples whmh would reqmre the application of the law
of another junsdlct~on, and exclusive venue shall be in Denton County, Texas for
any claims lawsuits or actions in connection w~th th~s Agreement
21 In the event of any conflmt between the parties hereto such that either party bnngs or
commences any legal actmn or proceeding related to this hcensc, including but not
hmlted to, any actmn pursuant to the prov;s~ons of the Texas Uniform Declaratory
Judgments Act (Tex Clv Prac& Rem Code § 37 001, et seq, as amended), the
parties hereto agree to waive any and all rights to recovery of attorneys fees to which
the prevmhng party might otherwme bc entitled
22 Th;s Agreement shall never be construed to constitute the parties hereto as partners or
joint venturers, or to create a relationship of pnnclpal-agent, employer-employee,
trustee beneficiary, an assocmtmn for business or profit, or any other relatlonsh;p,
legal or eqmtable, among the parties hereto In all respects, each party shall be
responsible for ~ts own conduct in connection with the subJeCt matter of th~s
Agreement as though it were an independent contractor, free from all control and
direction of the others
23 Th~s Agreement may be executed m multiple counterparts, each ofwhmh when taken
together shall const;tute but one and the same instrument, but none of whmh shall be
Page 7
effective until and unless executed by all pames named herren Additionally, tlus
Agreement may also be executed m multiple ong~nals, any one of whmh, when fully
executed as herein prowded, shall be effective for all purposes 'When fully executed
as here~n prowded, the terms and condlttOnS ofth~s Agreement shall be b~ndlng upon,
and ~nure to the benefit of, the partms hereto, their he~rs, successors and asmgns
24 EXECUTED by each party hereto as of the date ~ndmated bemde ~ts mgnamre, to be
effective for all proposes as of the Effective date
C~ty
Mmhael A Cond~ger
Date ~. - F"I-c>~. CITY OF DENTON, TEXAS
ATTEST
Jenmf~r Walters, City Secretary
Date ~- tN- o'~
APPROVED AS TO LEGAL FORM
Herbert L Proud, C~ty Attorney
Operator /
Page 8
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned authority, on this day personally appeared Michael A
Conduff, CITY MANAGER OF THE CITY OF DENTON, TEXAS, known to me to be
the person and official whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of said City, and for title purposes and
consideration thereto expressed, and in the capacity therein stated
Notary Public, State of Texas
STATE OF TEXAS §
COUNTY OF DENTON §
The foregoing instrument was acknowledged before me on ~ - ~/- 2002 by,
on behalf of the corporatmn
Page 9
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF DENTON §
Before me, the undersigned anthor~ty, on th~s day personally appeared C Noell
Rather, PRESIDENT OF ENEXCO, INC, known to me to be the person and officml
whose name ~s subscribed to the foregoing instrument and acknowledged to me that the
same was the act of smd Operator, and for t~tle purposes and consideration there~n
expressed, and m the capacity thereto stated
Notary Pubhc, State of Texas
STATE OF TEXAS §
COUNTY OF DENTON §
The foregoing instrument was acknowledged before me on [- I'"[-~ 2002 by,
on behalf of the corporation
~ CHRISTINE A DICK I NotaryPubhc, State of Texas
~ Camm Explr~ 3 '~ 2005
Page 10
EXHIBIT "A"
to Surface Use Agreement dated effecUve ~- ~"1 -c~,
between and
the CITY OF DENTON, TEXAS
MEMORANDUM OF SURFACE USE AGREEMENT
The Memorandum ~s being executed for the purpose of giving notice of the
existence of that certain Surface Use Agreement dated effective of even date entered into
by and between Enexco, Inc (as "Operator") and the CITY OF DENTON, TEXAS (as
"City") regarding Operator's use of the lands owned by City located in Denton County,
Texas, to wit
(the "Land") for Operator's oll and gas operations on such lands
Dated effective this V"I day of '-~o_~,~c4 ,2002
OPERATOR //~
By
Noell Rather, President
CITY OF DENTON, TEXAS
~ty Manager
ATTEST
By ~/~~~
Jenmf~r Walters, City Secretary
APPROVED AS TO FORM
Herb Prouty, Clt~-~.ttorney
Page 11
MEMORANDUM OF OIL, GAS AND MINTAL LEASE AGREEMENT
CITY OF DENTON AIRPORT
The Memorandum is being executed for the purpose of g~vlng notice of the
existence of that Oil, Gas and MlneraI Lease Agreement dated effective of this date
entered into by and between, Enexco, Inc (as "Operator") and the CITY OF DENTON,
TEXAS (regarding Operator's use of the lands owned by the City of Denton located m
Denton County, Texas, to wit
TRACT 1 The land described ~n condemnation proceedings identified by Cause
No 3922 filed on November 30, 1943 between the City of Denton and RM
Evers, et al and subsequently filed ~n Volume 1675, Page 546 of the Real Property
Records of Denton County, Texas, cuntalnmg 147 26 acres, 2 26 acres of whmh is
m a pubhc road, m the Wdham Wllburn Survey, Abstract Number 1419
TRACT 2 The land described m that Warranty Deed dated December 23, 1943
between P T Underwood and w~fe Jlnun~e Underwood and the C~ty of Denton
recorded m Volume 304, Page 503 of the Real Property Records of Denton
County, Texas, contmmng 74 94 acres, 1 75 acres of which is in a public road, m
the Thomas Toby Survey, Abstract Number 1285
TRACT 3 The land described ~n that Warranty Deed dated January 18, 1944
between Mrs Ellen Pearl Corbm, a widow, Hugh C Corbln and wife, Sue Lou
Corbm, John S Corbm, Aline Corbm Brown and husband W O Brown, Grace
Corbm, a feme sole, Georgia Corbm, a feme sole, James E Corbm and w~fe,
Johnme Corbm, Mrs Gertle Corbm Hurst and husband, G E Hurst, and the C~ty
of Denton, recorded m Volume 305, Page 216 of the Real Property Records of
Denton County, Texas, contmnmg 331 94 acres, 2 61 acres of wluch xs ~n a pubhc
road, m the Wm Smith Survey, Abstract Number 1188, and the Wm Nmll
Survey, Abstract Number 970
Denton County, Texas ("the Lands") for oil and gas operations
Dated effective this date, January 17, 2002
OPERATOR //
Noell ~.ather, President
Enexco Inc
CITY OF DENTON, TEXAS
C~ty Manager
ATTEST
Jenmfer Waiters, C~ty Secretary
APPROVED AS TO FORM
Herb Prouty~C~ty Attorney
ENE×CO,,.C ~ ~ 0 0 0 3 0 0
EXPENSE ACCOUNT
DALLAS TEXAS 75219
Airport Gas Royalty 1/17/02 $110,828 60
FIRST MERCANTILE BANK
ENEXCO, INC 6o7~ SHERRY LANE
EXPENSEACCOUNT DALLAS T× 75225 9663
3500 OAK LAWN, STE 390, LB 15 3224o4/111o
DALLAS TX 75219-4349
1/17/o';'
One Hundred Ten Thousand Eight Humdred Twenty eight Dollars & Sixty Cents $110,828 60
TO FHE '~ , -
ORDER CF CITY OF DENTON
Airport Gas Royalty
October 26, 2004
DAN A. HUGHES
Oil and Gas
Division Order
TO: DAN A. HUGH~S COMPANY ~ ~'
B~e, ~ 781~0669
CITY OF DENTON- A ORT fl2-H
The un~amtoned and each ef them. asvemlly ~e~ities that lhey are the legal owners of, and are entitled to payment fo~. ascordino to the d~vt~ion
ef I~emst haralna~r IndictS. the pr~asda derived from the sale of oil and 9as and other osseous or liquid hydrcoa~ona proaucad and
aawd, from ~e followin0:
Wells located on l~d which is more ~lly described in ~at ee~ain Oil, Gas ~d Mineral
Lease dated J~u~ 17, 2002, baleen The CiW of Denton, Denton, Texas, Lessor, ~d Enexco, Inc., as Lessee,
a Memor~dum of which is recorded in Volume 5010, Page 858, Real Propo~ Records, Denton Count, Texas
in the propo~ons shown in the dMaion of interest attached hereto as Exhibit "A".
THIS AGREEMENT DOES NOTAMEND ANY LEASE OR OPERATING AGREEMENT BETWEEN THE INTEREST OWNERS AND THE
LESSEE OR OPERATOR OR ANY OTHER CONTRACTS FOR THE PURCHASE OF OIL OR GAS.
The following terms ara a part of this division order end shall be binding upon the undersigned, their successors, legal ~epresentatives and
assigns:
The following previsions apply to each interest owner ("owner") who executes this agreement.
TERMS OF SALE: The undersigned will be paid in accordance with the division of interests set out on Exhibit"A" attached hereto. The payor
shall pay all parties at the price agreed to by the operator for oil and/or gas to be sold pursuant to this division order. Pumhaser shall compute
quantity and make corrections for gravity and temperature and make deductions for impurities.
PAYMENT: From the effective date and In accordance with §91.402 of the Natural Resources Code of the State of Texas, payment is to be
made monthly by payor'-, check, based on this division of interest, not later than (i) sixty (60) days after the end of the calendar month oll
production la sold from the property listed above and/or (ii) ninefy (90) days after the end of the calendar month in which gas produotion is sold
from the property listed above, and less taxes required by law to be deducted and remitted by payor as pumhaser. Payments of less than $100
may be accrued before disbursement until the total amount equals $100 or more, or until December 31 of each year, whichever occurs first.
Payee agrees to refund to payor any amounts attributable to an interes or part of an nterast that payee does not own
INDEMNITY: The owner agrees to indemnify and hold payor harmless from a mb~ify resulting from payments made to the owner in
accordance with such division of interest, including but not Ii,hired to attorney fees or Judgments in connection with any suit that affects the
owner's interest to which payor is made a party.
DISPUTE; WITHHOLDING OF FUNDS: If a suit is flied that aff§cts the Interest of the owner, written notice shall be given to payor by the
owner together with a ropy of the complaint or petition filed.
In the event of a claim or dispute that affects title to the division of interest credited herein, payor is authorized to withhold payments accruing
to such interest, without Interest ~nleas otherwise required by applicable statute, until the claim or dispute is seffled.
TERMINATION: Termination of th~:agraement Is effect ye on the f rst day of the month that begins after the 30th day after the date written
notice of termination is rasaived by'either party.
NOTICES: The owner agraas to notify payor in writing of any change in the division of interest, including change of interest contingent on
payment of money or expiration of time.
No change of interest is binding on payor until the recorded copy of the instrument of change or documents satisfactorily evidencing such
change are furnished to payor at the time the change occurs.
Any change of interest shall be made effective on the first day of the month following receipt of such notice by payor.
Any correspondence regarding this-agreement shall be furnished to the addresses listed unless otherwise advised by either party.
In addition to the legal rights provided by the terms and provisions of this division order, an owner may have sertsin statutory rights under
the laws of this state.
IN WITNESS WHEREOF, this insti~ment is executed effective as hereinabove provided.
SOCIAL SECURITY OR FEDERAl. I.D. NUMBER
SOClALSECURITYORFEDERALLD. NUMBER
SOCIALSECURITYORFEDERALI,O, NUMBER
SOCIALSECURITYORFEDERALI.D, NUMBER
(TWO WITNESSES ARE REQUIRED FOR EVERY SIGNATURE)
FAILURE TO FURNISH YOUR SOCIAL SECURITY/TAX I.D. NUMBER WILL RESULT IN 31 PERCENT (31%}.WITHHOLDING TAX IN AC-
CORDANCE WITH FEDERAL LAW, AND ANY TAX WITHHELD WILL NOT BE REFUNDABLE BY PAYOR.
THIS DIVISION ORDER COMPLIES WITH THE TERMS OF SUBSECTION (C) OF SECTION 91.402 OF THE NATURAL R~:~OURCES ~ODE
OF THE b~TATE OF TEXAS AND PURSUANT TO SUBSECTION (E) OF SECTION 91.402, IF AN OWNER OF A PRODUCING PROPERTY
REFUSES TO SIGN SUCH A DIVISION ORDER, THE PAYOR MAY WITHHOLD PAYMENT WITHOUT INTEREST.UNTIL SUCH DIVISION
ORDER IS SIGNED. ' "
If your address is not shown herain or is incorrectly shown, pJease indicate correct mailing address below:
EXHIBIT "A"
CITY OF DENTON - AIRPORT #2-H
DIVISION ORDER NO. 0340-02
Royalty Interest Owner
City of Demon
Michael A. Conduff, City Manager
215 East McKinney
Denton, TX 76201
Net Revenue Interest
.20000000
AMENDMENT TO SURFACE USE AGREEMENT
CITY OF DENTON AIRPORT
This Amendment to the Surface Use Agreement City of Denton Airport of January 17th,
2002 ("Amendment to the Agreement") is made and entered into effective this 30th day of
August, 2004 by and among the DAN A. HUGHES COMPANY, whose address is a P.O.
Drawer 669, Beeville, Texas 78104-0669 (Operator") and the CITY OF DENTON,
TEXAS, a home rule municipal corporation, acting by and through its duly authorized
City Manager ("Surface Owner");
WHEREAS, Operator and Surface Owner desire to enter into an amendment to the above
mentioned agreement regarding Operator's use of the Lands for its proposed oil and gas
operations thereon in connection with Operator's gas well operations on the Airport
Property.
NOW, THEREFORE, in consideration of the premises and the covenants set forth below,
Operator and Surface Owner agree to amend their agreement to add these additional
provisions as follows:
An annual lease at the rate of $0.08000 cents per square foot for a tract of land
totaling 35,629.94 square feet, which is $2850.40 payable annually to be used for a
gas collection pipeline. Attachment A, a survey of the leased premise from Alliance
Area Surveying, identifies the proposed tract of land. A survey showing the corrected
15-foot width of property lease will be provided no later than 30 days after the
signing of this Surface Use Agreement Amendment. Such payment for land to be
payable upon completion of construction and each year anniversary thereafter until
gas pipeline removal. Operator shall remit the payments required in this paragraph
payable to the City of Denton, the Surface Owner.
An annual payment of $10.00 per rod for a total of 87.81 rods (1404.95 feet), which is
$878.10 for the right of way to lay a gas collection pipeline on Airport property.
Attachment A, a survey of the leased premise from Alliance Area Surveying,
identifies the proposed tract of land. A survey showing the corrected 15-foot width of
property lease will be provided no later than 30 days after the signing of this Surface
Use Agreement Amendment. Such payment for pipelines to be payable upon
completion of construction and each year anniversary thereafter until removal.
Operator shall remit the payments required in this paragraph payable to the City of
Denton, the Surface Owner.
An annual lease at the rate of $0.08000 cents per square foot for a tract of land
totaling 200' x 400' well site or 80,000 square feet, which is $6400.00 payable
annually. Attachment B, a survey of the leased premise from Alliance Area
Surveying, identifies the proposed tract of land. A survey showing the corrected
dimensions of the property lease will be provided no later than 30 days after the
signing of this Surface Use Agreement Amendment. Such payment for land to be
payable upon signing of this Surface Use Agreement and each year anniversary
thereafter until the well is abandoned and plugged. Operator shall remit the payments
required in this paragraph payable to the City of Denton, the Surface Owner.
This amendment to the agreement shall be construed under the laws of the State of
Texas, without reference to conflict of law principles which would require the
application of the law of another jurisdiction, and exclusive venue shall be in Denton
County, Texas for any claims lawsuits or actions in connection with this
Agreement.
In the event of any conflict between the parties hereto such that either party brings or
commences any legal action or proceeding related to this license, including but not
limited to, any action pursuant to the provisions of the Texas Uniform Declaratory
Judgments Act (Tex. Civ. Prac.& Rem. Code § 37.001, et seq., as amended), the
parties hereto agree to waive any and all rights to recovery of attorneys fees to which
the prevailing party might otherwise be entitled.
This amendment to the agreement shall never be construed to constitute the parties
hereto as partners or joint venturers, or to create a relationship of principal-agent,
employer-employee, trustee beneficiary, an association for business or profit, or any
other relationship, legal or equitable, among the parties hereto. In all respects, each
party shall be responsible for its own conduct in connection with the subject matter of
this Agreement as though it were an independent contractor, free from all control and
direction of the others.
7. This amendment to the agreement may be executed in multiple counterparts, each of
which when taken together shall constitute but one and thc same insmmaent, but none
of which shall be effective until and unless executed by all parties named herein.
Additionally, this Agreement may also be executed in multiple originals, any one of
which, when fully executed as herein provided, shall be effective for all purposes.
'When fully executed as herein provided, the terms and conditions of this Agreement
shall be binding upon, and inure to the benefit of, the parties hereto, their heirs,
successors and assigns.
8. EXECUTED by each party hereto as of the date indicated beside its signature, to be
effective for all purposes as of the Effective date.
EST:
~nif~r ~f~ers7 ~ity Secretary
Date: ~//C/~)/7/
~ L. Pr,6uty, CSty Attorney
Surface Owner:
Jo~F'~r~ ~ssista~ City Manager
CI?Y OF I~ENTON, TEXAS
Operator:
DAN A. HUGHES COMPANY
P.O. Drawer 669,
Beeville, Texas 78104-0669
STATE OF TEXAS §
~£~ §
COUNTYOF ~ §
Before me, ~Wt'btt~l~iOff_. /~. X]t~ta tOG , the undersigned notary public, on this day
personally appeared ~)~N /~. blt~h~ · , the /r)~_i:Z
~ ~o~ to me;
proved to me on the oa~ of _; or
proved to me ~ough ~s~er c~ant
{description of iden~fication c~d or oth~ document issued by the
federal gnvem~t or any state gnvement that contains the photo.apb
and silage of the ac~owledging person
to be the person whose name is subscribed to the foregoing instxument, and
acknowledged to me that he/she executed that instrument for the purposes and
consideration therein expressed.
Given under my hand and seal of office this 30th day of August, 2004.
blic v (1
MEMORANDUM OF SECOND AMENDMENT TO SURFACE USE AGREEMENT
The Memorandum is being executed for the purpose of giving notice of the
existence of that certain Surface Use Agreement dated effective of even date entered into
by and between, whose address is (as "Operator") and the CITY OF DENTON, TEXAS
(as "Surface Owner") regarding Operator's use of the lands owned by Surface Owner
located in Denton County, Texas, to wit:
(the "Land") for Operator's oil and gas operations on such lands.
Dated effective this, August 30, 2004.
Surface Owner:
Jo~ii&e,~]Aslistant City Manager
CITY OF DENTON, TEXAS
ATTEST:
Jenn~ V~a]~'~ffCity Secretary
APPROVED AS TO FORM:
Herb Prouty, City Attomey
GAS PIPELINE EASEMENT EXHIBIT
DENTON MUNICIPAL AIRPORT
1.636 ACRES
FIELD NOTES to all that certain tract of lan~ situated in the WILUAM NEJL SURVEY, Abstract No. g70,
in the City of Denton, Denton County, Texas and being a part of Lot 1, Block 1, Southeast Airport
Addition, on addition in the City of Denton ~ccording to the plat thereof recorded in Cabinet C, Page
295 of the Plat Records of Denton County, Texas, and a port of a tracl of land now owned by the
City of Denton Municipal Airport; the subject tract being more particularly described as follows:
BEGINNING at the intersection of the South I;ne of said Lot 1 and o 25' building line os shown on
sa~d Plat, from which [he Southeast corner of said Lot 1 becr~ North §S degrees 45 minutes 05
seconds East at o dlstonco of 25.01 feet;
THENCE South 88 degrees 43 minutes OS seconds West with the South line thereof a distance of
30.01 feeti
THENCE North O0 degrees 06 minutes 03 s~cands West parallel with and 30.00 feet West of said
building line a distance of 1405.57 f~ct ot thc beginning of a tangent curve to the left having a
radius of 215.00 feet, a chord bearing and distance of North 02 degrees 23 minutes 20 seconds
West, 17.16 feet and a delta angle of 04 d~grees 34 minutes 23 seconds;
THENCE along said curve parallel with end 50.00 feet West of sold building tine on arc distance of
17.16 feet;
THENCE North 89 degrees 39 minutes 14- seconds West parallel w~th and 30.00 feet South of a
access and utility easement as shown on ec~d PJat o distance of ¢3B.14 feet th the East line of o
60' access, drainage and utility easement os shown on sold Plat;
THENCE North O0 degrees 20 minutes 46 seconds Easl; with the East line thereof o distance of
518.42 feet to the Northwest comer of the here[n described easement;
THENCE South 89 degrees 39 minutes 14- seconds East o dlstonce of 50.00 feet to the NortheHy
most Northeast corner of the herein described easement;
THENCE South O0 degrees 20 minutes $6 seconds West a d[slance of 488,42 feet to the South line
of sald 80' Access and Utility Easement;
THENCE South 89 degrees 59 mlnutes 14` s~conds East with the South line thereof o distance of
434.08 feet to the intersection of sa[d South I~ne with sold buildlng line at the beginning of
non-tangent curwe to the right having a rad!Js of 245.00 feet, e chord bearing and distance of South
05 degrees 37 mlnutes 30 seconds East, ~-7.18 feet and o delta angle of 11 degrees 02 minutes 44
seconds;
THENCE along said curve and said building I!ne an arc distance of 47.23 feet;
THENCE South O0 degrees 06 minutes 03 seconds East with said building line o distance of 1404.g5
feet to the PLACE OF BEGINNING end enclosing 1.656 acres of land, more or less.
CERTIFICATION: I hereby certify that I have ccnducted an accurate on the ground survey of the pr~rnises
depicted hereon ~nd described in the IegoI de;criptlon attached hereto and that the findings end results of
[~HIS SURVEY NOT VALID~
O~
P.O. Box 5o7
K~U~, TX ?~49 ~ ~AREA
940-482-6723 OFFICE SUR~YING
940-48~-3680 F~
JOB ~ER:~ 0~0801-3
l14-B ~N STREET ~DA~: 8-4-4
G~NES~, ~ 76~40 DRA~ BY:
940-665-9~05 OFFICE C~C~D BY. ~T
940-665-9106 F~
........................ R.P.L.S. ~T
S 89'39'14"1
L(
SOUTHF_J
CABI
1 "=200'
GAS PIPELINE EASEMENT EXHIBIT
DENTON MUNICIPAL AIRPORT
1,636 ACRES
30.00
DENTON
? MUNICIPAL
AIRPORT
S 69'39~14"E 434.06'
89'59'14"W 438.14'
L=17.16'
R=215.00'_/
CH=NO2'23'20"W 17.16'
DELTA=04'34'23"
)T ~, BLOCK 1
ST !AIRPORT ADDITION
qET G, PAGE 295
S 88'43'03"W
L=47.23'
,~ ' R=245.00'
,?/'-CH=SOS'37'50"E 47.16'
~ ~ DELTA--1'i'02'44"
0.01'
P.O. BOX 50? ) ALLIANCE
I~U}Z, TX 78249'~ (~AREA
' 940-482--6723 OFFICE SURVEYING
940-462-3680 FAX
JOB NUMBER:1020801-8
l14-B MAIN STREET DATE: 18--4-4
GAINESVlLLE, TX 76240 DRAWN BY: IHCI
940-665-9105 OFFICE
940-665-9106 FAX CH]gCKED BY:MET
..................... R.P.L.S. I JET
--
1 "=1000'
oertlf>, thie plat to bo true and car?eot to the bast
my knowledge.
Opemton D~n A. Hughes Compon.y
Nome & Well Number: Nrport
rd~voIdo.: 632
Nenrent Town in County:. 1 Mile Went of Denton, Texas
P.O. BOX 507
I{RUII, TX ?8249
940-482-6723.: OFFICE
940-482-3680 FAX!S
114-B. MAIN b'TREE~
GAINE~, TX 76240
940-665-9105 OFFICE
940-665-9106 FAX
J.ALLIANCE
'~-~AREA
SURVEYING
~oB N'm~S oz08m-3
DATE: 08-09-0~.
DRA',~N BY: HCI
CHECKED BY: JET
~.P.L.S. JET
IL89-289
A3-1qod OIAbl[I egg:OI ~,O OI ~r~'W
#G.U. #1-H &
CENT~L FACII,TTY SITE ~YOUT
LOT 1, BLOCK 1 II
SOUTH~ST AIRPORT ADDITION II
CABIN~ G, PAGE 295 I~ ~
LINE H~S~
PROPOSED
W~
' I
GuY ~CMOR ~.)-- ,
__.~ .... 2¢~E.~ ........ - '
4 ~ ~.o. ~ox' ~o~ ' Af,f,f&NCE
9~o-¢8z-e~z8' o~c~ UURVEY[NG
940-482~3680
' ' ' ..... JOB ~ER: 0~0B01pd
I l14-B ~ ~EET DA~: 8-9-04
940-665-9105 OF~CE
~ '=~ 00'940-665-9106"F~ ~C~D
........ ~ ,~..,~.,~ R.~.LS.
E
I'~ ILBg-EB9 A39qO~ QIABO ell:OI ~0 LI 9nB
"
UNDERGROUND PIPELINE EASEMENT AGREEMENT
THE STATE OF TEXAS ~
~
COUNTY OF DENTON ~
This Underground Pipeline Easement Agreement (this Agreement") is entered into
between the City of Denton, Texas, a home rule municipal corporation of Denton County, Tcxas
("GRANTOR") and Stroud Energy, LTD. as ("GRANTEE''). .
This easement is granted to the GRANTEE pursuant to the authority granted to the City
Manager under paragraph I., section (b) of the Surface Use Agreement City of Denton Airport,
entered into and effective the 17th day of January, 2002, by and among ENEXCO, Inc. and the
City of Denton, Assignment of Oil, Gas and Mineral Lease from Enexco, Inc., to Dan A. Hughes
Company dated June 19,2002, subsequent Amendments dated April 29, 2004, and August 30,
2004, and the Assignment of Gas Well Surface Use Agreement at Denton Municipal Airport to
Stroud Energy, Ltd., dated July 15, 2005. .
For and in consideration ofa one-time payment of$13,595.29 (1,358.78 Rods x $10) for
surface damages for the City of Denton Airport #3H and #4H pipeline and an annual payment of
$9,152.14 (164,844 square feet x $.05552) for land taken out of production for the City of
Denton Airport #3H and #4H pipeline, for a total initial payment of $22,747.43, and other good
and valuable considerations are in hand paid, the receipt of which and sufficiency of which is
hereby acknowledged, and in consideration of the covenants contained herein, GRANTOR and
GRANTEE agree as follows:
1. Subjeet to the terms of this Agreement, GRANTOR hereby grants to GRANTEE an
easement (the "Easement" or "Easement Tracts") under and across that certain trdCt of
land situated in the W, Wilburn Survey, Abstract Number 1419, Denton County, Texas,
W. Neil Survey, Abstract Number 970, Denton County, Texas, I Hembrie Survey,
Abstract Number 594, Denton County, Texas, and being a part of a tract of land owned
by the City of Denton, commonly known as Denton Municipal Airport and being a part
of Lot 1, Block 1 of the Southwest Airport Addition as recorded in Cabinet G, Page 295
of the Plat Records of Denton County, Texas, and being more particularly described in
Exhibit A, and lliustrated in Exhibits B, C, and D, attached hereto and made a part hereof
(the "Easement Tract"). This grant is made subjeet to all matters of record affecting the
Easement Tracts.
2. The Easement shall only be used for the purpose of constructing, inspecting, maintaining,
operating, repairing, and removing pipeline and appurtenant facilities for the gathering
and transportation of natural gas across, under and upon the Easement Tracts. The
appurtenant facilities may be at grade or above ground to the extent agreed to in advance
by GRANTOR and the FAA, after GRANTOR receives construction drawings of such
appurtenances. After completion of construction Grantee shall provide GRANTOR with
Page 1
complete detailed "as-built" drawings of the pipeline and appurtenant facilities showing
the exact location within the Easement Tract, depth, size, and construction methods of the
pipeline and appurtenant facilities.
3. GRANTOR reserves and retains the right to grant other rights and easements across, over
or under the Easement Tracts to such other persons as GRANTOR deems proper,
provided such other grants do not interfere with the use of the Easement by GRANTEE
for the purpose set forth herein.
4. GRANTEE agrees and fully understands that the pipeline and appurtenant facilities
located in the Easement Tracts are "at risk". Subject to GRANTOR and GRANTEE
agreeing on a mutually acceptable location, GRANTEE shall arrange for the pipeline,
appurtenant facilities, all activities, and improvements within the Easement Tracts to be
adjusted within the Easement Tracts or relocated to facilitate any development or
improvement projects, roadways or other utility crossings, at the request of GRANTOR
and/or the FAA, within thirty (30) days of notification by GRANTOR and/or the FAA,
and the cost associated with the adjustment or relocation of the pipelines, appurtenant
facilities, all activities, and improvements shall be completely borne by the GRANTEE.
5. GRANTEE shall have all of the rights and benefits necessary or convenient for the full
enjoyment or use of the right herein granted, including, but without limiting the same to
the right from time to time to cut, undergrowth and other obstructions on the Easement
Tracts, that may injure, endanger or interfere with thc use of said pipeline as long as these
activities do not interfere with the operations of the Denton Municipal Airport, or any
other GRANTOR operations on the land. GRANTEE shall also have the ability to
remove any trees in the Easement Tracts and surrounding areas with the prior written
approval of GRANTOR. The GRANTEE shall have the right to assign this grant in
whole or in part with the written consent of GRANTOR, which consent shall not be
unreasonably withheld.
6. This easement is granted upon the conditions that GRANTEE's Facilities to be
constructed shall be maintained and operated by GRANTEE at no expense to GRANTOR
and GRANTOR shall not be responsible for any costs of construction, reconstruction,
operation, maintenance or removal of GRANTEE's Facilities.
7. GRANTEE shall and does hereby agrcc to indemnify and hold harmless GRANTOR, its
officers, employees, agents, and invitees from any and all damages, loss or liability of
any kind whatsoever by reason of injury to property or third person occasioned by its use
of the Easement Tracts or act of omission, neglect or wrongdoing of GRANTEE, its
officers, agents, employees, invitees or other persons, with regard to the Facilities and
maintenance of such improvements; and the GRANTEE shall, at its own cost and
expense, defend and protect GRANTOR, its officers, employees, agents, and invitees
against any and all such claims and demands. This indemnity is in addition to and does
not limit, amend, or replace the indemnity by GRANTEE as Operator to GRANTOR as
City in Section 17 "Indemnification" of the Surface Use Agreement betwccn the parties
referenced above.
Page 2
"
8. GRANTEE shall diligently repair any damage to improvements on the Easement Tracts,
or surrounding property, and shall restore the surface of the Easement Tracts and
surrounding property from damage resulting from GRANTEE's use of the Easement
Tract and Temporary Construction area.
9. GRANTEE shall, at its own cost and expense comply with all applicable laws, including
but not limited to cxisting zoning ordinances, governmental rules and regulations enacted
or promulgated by any governmental authority and shall promptly execute and fulfill all
orders arid requirements imposed by such governmental authorities for the correction,
prevention and abatement of nuisances in or upon or connected with said premises
because of GRANTEE's use thereof.
10. The GRANTEE agrees to bury all pipes at a minimum depth of 5 feet, however if the
pipeline is underneath a water, sewer; or drainage pipe utility, the natural gas pipeline
shall be buried at a minimum of 60 inches below the existing utility flow line. Stroud
agrees to bury the pipeline at a minimum depth of 15 feet underneath the airport runway
safety area located at the south end of the airport.
II. It is agreed that this grant will expire and all property rights granted hereunder shall
revert to GRANTOR upon the expiration of the Surface Use Agreement City of Denton
Airport, entered into January 17th, 2002 between ENEXCO, Inc. and the City of Denton
and any amendments or extensions thereof, or Fifty (50) years from the date of execution
hereof. The conveyance hereunder shall be automatically void and the easement granted
shall be automatically terminated and forfeited, without the necessity of any notice,
elcction or re-entry whatsoever. GRANTEE shall remove pipelines and return the
property to its original condition at GRANTEE's sole cost and expense, The pipeline
shall be removed prior to the expiration of the Easement.
12. The annual consideration due under this Easement shall be made to the GRANTOR on or
before the anniversary date of the execution of the Easement grant herein. The payments
shall be made without demand and if not received within Thirty (30) days of the
anniversary date herein GRANTEE shall be liable for and pay interest, at an annual
interest rate of 18%, until such time thiU the payment is received by the GRANTOR. If
the payment is not made within thirty (30) days after the anniversary date described
above, GRANTOR may give GRANTEE written notice by certified mail of the past due
payment and if the payment, plus interest, is not received by the GRANTOR within thirty
(30) days from receipt of such notice, then GRANTOR may terminate this agreement by
written notice to GRANTEE.
13. It is agreed that this grant covers all the agreements between the parties and that no
representation or statements, verbal or written, have been made modifying, adding to, or
changing the terms of this Agreement. Save and except as amended hereby all of the
terms and conditions of the Surface Use agreement City of Denton Airport, as amended,
shall remain in full force and effect and Operator shall fully comply with the Surface Use
Agreement
Page 3
I,. ,
TO HAVE AND TO HOLD unto GRANTEE, its successors and assigns, so long as the
right and easement herein granted shall be used by, or useful to, GRANTEE for the purpose
herein granted, with ingress to and egress from the premises for the purpose of constructing,
inspecting, operating, maintaining, repairing, altering, replacing, changing the size of and
removing the property of GRANTEE herein described.
In TESTIMONY WHEREOF, the Parties herein have executed this Agreement this
O? ,f-Vv- day of D-r~ 2006.
GRANTOR:
CITY OF DENTON
~AA
~
~---L_
By: Howard Martin, Interi
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~h\U %-1 ~ 91", ,
APPROVED AS TO FORM:
Edwin Snyder, City A
Denton, Texas
ACCEPTED AND AGREED:
STROUD
By:
h
f/IA. (t~1<6~
Title:
Page 4
ACKNOWLEDGEMENT
THE STATE OF TEXAS ~
COUNTY OF DENTON ~
Howard Martin, Interim City Manager of the City of D~gon, :rexas, on behalf of such
municipality, acknowledged . s instrument before me on, (,}'VA f ,] f--- 2006.
My Commission Expires:
, ~-~j{':~'\'1~;;-,__
~ ~'ti... .......~
". .-
)i\~.. ..~J
ti ",::iQf,"~i'
.',L -.",,,..-
\ JENNIFER K. WALTERS
Notary Public. State of Texas
My Commission Expires
December 19, 2006
My Commission Expires:
:::>!/'fr/o -,
AFI'ER RECORDING RETURN TO:
City of Denton
Real Estate and Capital Support
601 East IDckory Street, Suite B
Denton, Texas 76201
Page 5
/,,~-~'1~
~*, ~:
-' '.
.. ..
;{It."..\t.~
';r,,'?t..~-'
, Ltd., on behalf of
2006.
NANCY E. DYESS
MY COMMISSION EXPIRES
May 18, 2007
........... DtSCIOPllON
7.84-1,GE!
j"
1)t(HCE tb1h B8 DelJl'C'" 42 lrt",uln 42 Stc
. AbstrOr:.l NuI'lIber 14U. Denlcn ~t)'. r..OI. W. PlEL SURYEV, AD.tmet
e\ Rurrlber !li4, Denlon Count)'. I..". O"d bei"V Cl port or a trod; ot lones
pal Nrporl anI! bMlJ 0 part or Lm. I, 8loc:k I, of UI. SDuu.a1 Nrpaft
otU 01 OIntelt ~. r~ aild bMQ mott portkuklrty ~ GII '08_
'rom .bie" a 1/2 Itan ro:t found lor'lM Nafthwat COl'Nt bUrl Narttl 89
",... 1& Miftvtt:l 46 StCOlMlI foIt,. UI4.1.~ leet:
atorIq ot 2~2.28 IMl to II poInt:
tolIc4l ot 30.00 leet to a-poIl'lt;
o Illanc.I 0( 22119 ftel to Cl pclftt:
tW ",1h the Wnt h of wid Inlet. 0 dlstollO! cJ J25'.19 (tel m a pak'll:
st.cnu 01 143.21 led to 0 poil'lt;
'.II4~ d 3O.eo leet to 0 poitIt;
.stCflt:lII of lU.lllfeetlolpoont;
net .. thll West Gna 01 del Iroct. 0 tIIistGno. 01 ".'.51 rHt to a paint;
tiel .all. .lftd 30 1'1II.1 Nort!l 01 0 SOuth ""c 01 Hid tl1lct. 0 &t4I'lClII ol HISUiJ
... that ~ trGc:t at iotld tituotd " 1tI. W.
tMnbltr' 170. DentOrt County. rlllSOI. l KEWEIRlE
Ow'*' tat In, CitY or Oenton. comman., tIzItnm
Addit>otl ~ ree:ord.d In Olb..... C. P09' 'U!i 0'
8ECINN1NC ot 0 'painl. en the Eall sid, of Tem
DIIlQI'MS .. MTnultI MI SIIlecndti ..... 21.ao ,
tMDlC[ Sauth eg Oe9teel 4] NlnulIIls CHI ~CDftd
~c:E. Soultl 00 o.gr... IllS ~ ~,
THENa: Nflfth lS'3 DI9f'HI 43 U1ftutj1 0' ~
ntENCE SOu'lh 00 Dlqtft:1 oa NJ.nutal n
nDIC! Saulh a9 Dqreel
fl1EMt:( SDU'th 00 DeQteeI 111 WtlulU: 3lS Sec
MNCE Narth M C1tQreel 41 tJltIuta124-
I'HDIC[ SeNIh OD o.r,eu 08 /oIOnutU 2'lI S.
THENCE Soul'h BB Dewees. .... Ninutu 21 SI
red lo 0 peNnl;
l'H(NC( Swth 00 OIgNllI IJ Ninut"
140 paint:
11itMCE SOu!tl fit Drcq'eel ... Ninul..
..itn end 30' teet Eatl oJ 0 Wnt ftl. at .oi' lract. 0 dlltotIClIl fA I12G.S7 f...
point;
;'
JliEHC[ SOuZh CO DI~I De Nlnutel Ol s.c .
. I
~ SoIIIh I!!J lJeq'eIU <d 1.IirU21 n Sel;Clfl. I
ll4()C( SouOl ao Deqr'lle' CI!l Wlnutn 42 SIIICOJI; ~
THENCE MDrttl 119 De4R" 14 lolinl1les .9 Sacoa. ~
1"HCicE Ncwth ClO DelJ'" 13 Nirlut.. '0 s.coa' i
'IU of .10.01 feet tl) 0 FOil'll on ItIc Soutn Ii,.. 41' loId 1.& I;
..... SouttI titwo tNreoI'. 0 d"tol'lCli of t451.3S ,.. to os pelnl:
ntEHCE MtJtth B8 ~ "'.' UiftuUI 19
THEICE N<<Ul DO D~ 05 ~lIIlt 211 $"
eEQNNINC and cDn1fl1l'Wlo 7.841 OCl"l. 01 IDnd.
f\.QOO STAlDIENf: I tIcrw ~ thlI F'.E...;
4-8010.... effect;.. dOt. 3-3O-H end tftot mop
dr~,J'll.-;nttll ta be GUt1iOt 5OO-;.or
the PfOI>Irtr and /01 lfrIe .Itructvnt1 thereon will
~ flood nd9hl1 ITIO)' ~ ~ Incrlancl
t""........)ICIf'".
tria Wat &1111I cl Wlid lnrot!l. os cIidenca or 829.86 reet to 0 point;
1M SouUt. line 01 loid tnx:l, adllb'lee 01 '981.9 r~ tD 0 point:
wl1b the ...t fat er .Cl ttQCt, 0 diltotlet Of '''..3,3 r..t 14 OM PQHT Of
ra Rott UtIp for t... C2ty of c..un.. Outon County. frJllOI, ~ ~b.r
t ttliII ~ r. wltNn "tkm"'$haded lane r dellnad 01 -Area.
Ihown in Po".' ~ F' 01 said map. ThI!I Flo6CI Statement ~" net ill'IpIy tllet
11'I IJoodinq at nooct 401l'lOfe. on feN oceosiol'tl. ~ ftaGd, carl and ..... oocur
tJI tIllhItCI C4uaU. Thil f'IootII Statement trlGl IICl _ta lir:II:Iility on tn. pot't or
tfRTIF'r TO STROUD tNmCY, LID.
I h..tJy cett.ll'y-.ot 01............ Men
lhIIl !aoal -=.-~ attodlrd tMrwto, conducted .
SUI'\IIIl)' ~ tNe ond eorreet to DIe best vi rr:y:
lm~b_.,.........QlldlhotlllliclaJ
orreconS.ct&~toma.oIwNeftUle-
d.sert"~..... of~. _ D'leI .~ os
~C~.....,7$
H.C.~II .L.S.No.58f2
(WlC\It'eU Qt\;-the-v-nd ~ d lit. ,.,...,..... 4qlictU ~ elld ~ In
IOlNI aNI ItIplfVi'aia'\ en BIn/os ami' that 1M findiPlgI ootd NSuIts d sold
baf.ef 4nd \Jl4t lhIIl lIIiJe. lJJIfI 0l'I4 Iocotioll 01 ~libl. ~ opporut ~
ctI1 ~ tNI.I-uon of 011 cn.y:,. stram. mainI4iAId fit#lb-of-wcl1. one! &OAftIl1Its
d it WOnl 01' nal butt ....10 othicl!ftIJ UloI IUbIKt ~ 0CCIWd\IIf to 'Itlc .
tMI'e no villbIl 01 Oopl)Rllt iIlttusians. (Onl'lidll or prnlrusian~".
~: 1ba dillnt or cn.nt'. '..._alclti.... .....:
onthelU....,report.otterthbli'nehasC'a~1
NOm ~Ia '-' **h _ plIrformM
t_ IN _. the .u....,.-."''''.. to chotI9l1l.,.,,............. ClI'OWIIII'I'OI"I
Jlftldvollld must --=;:.t eM .-q at It...ed.
oIrc~A.&eCll'1lSeBlndar.
EXHIBIT A
EASEMENT EXHIBIT
i;
"
A. 1
JOB
KRUK. TX 76249 DATE:
940-482-6728 OFFICE DRAFr:.
940-482-3880 FAX K!iV!l!iW:
050808-02
11 05
.A.C.
H.C~
P.O. BOX 116
t:
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1200,
FEET
EAGlE f'A.RWS. IHe a:. JotIH
PORTER AUTO SALES
O..ne, Md.....: p.o. BOX 876
5ANGDt n: 16266-087.
Property Address: to" COLE RD '1'011 COD ROD
s OO'lnlow
30.00'
LEGEND ~
~^ . BENCHNARI( [...) " ,
W' SUIMY C01lIIER
CM .. CONl'RO\..m UOMJNENf .
. .. BEAftIHG BASIS
IRF .. 1RON ROD rouND
IRS - 1/2- IRON ROO SET
CJ,P-Pl.ASTICCW
F<:P '.. f'ENC1! COftNDt POS'l'
WFCP .. YD'AL rr::p
WFCP .. WOOO PCP
()-PLA.TORoaDCAlL
Pba .. POrNT 01" 8lGINNHC
poc .. POmT OF' ~T
ROW .. IbCHT -or -....y .
CE D COt.IMuNJCAfON
DE .. DRMrW;[ EASaIENf
EE .. ELECTRIC F.ASEUEH'r
ut .. UTILITY EASEUENT
WE .. ~E rASDlEtoIT
PVt . PVIlUC uTlUTY tIoStNtNT
BCM .. BURIED CHI.E MARKER
SPy .. BURIfJ] P1PCJft YARkfR
ER .. ElECTRIC.RIS[R
Ef .. El..ECTRIC TRNfSFORMER
55 ... SANITARY SEWER
Sf .. STOIW S~
TR .. mtPHONE RISER
J2J. - UCHt POU: (IP)
Ii - I'<MER POlL (PP)
0" UT1UTY RISER (UA)
.. -_Of/O"""'("') "..
~ .. WATER VALVE (WI/) -'
Q -....TER 110m CWN)
o .. SOlER NNfHOlE (MH)
1lI- CAS UEIER (CU)
0" CAS 'VAl..vElTEST $TAltON
0" PROP~E: TNO< (PO
PROPERTY LINE (PI..)
-. AO.W::ENT PI..
- _ + - - NlSnw:r/SURYO\JN('
.___m____. _ UNt (BL)
------- [AStWOfT ~E
-----CEtfTERUNE
- _. - _. - - - FLOOD 8OUHDAR't
DENTON
MUNICIPAL
,AIRPORT
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DENTOH. CItY or
Ow.,.,. AddNlr. WNtClP.&L. RUttDDlG
215 E. WeKlHN(Y STR[[T
DEHfOH, TX 71201-4229
p,..,.tty ......-= DENTOtf MUNICIPAL AIRPORT
EXHIBIT B
EASEMENT EXHIBIT
~BRBH8VR"aun
COBPOBA'I!'ZOU
lOB
P.O. BOX 116
KR1lJl. TX 76249 DATE:
940-482-6'723 omcz DlW'T:
940-482-3680 FAX WSYlll;W:
060603-02
11 05
A.C.
H.c.J.
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""V) .. ~CORNER ..;.
.. CXlf'fmClUNG WOHIAlEHT
. .. SEARl)(; BAStS
lRf .. JROH ROD f"OUND
IRS .. 1/2- IRON AOO SET
eN> - PlASTIC eN>
FCP .. RHCE CORNER POST
t.tfCP .. VEl'Al. FCP
'WFCP .. WOOO fCP
( ) .. PlAJ OR DEm CAU.
POB .. POINT QF' MnlNHINO
POC .. POINT oF OQII~CENEJoIT
ROW .. RIQHT-CIF'-W.Y
CE "" ~ EASDlEN.
OE .. CRAl'fAGE EISEImIT
EE .. ELECTRJe EA$D.IEMT
uE - uruTY EASBIEl<T
WE .. WATERuNE EASDIENT
PUt - PUlIlC uruTY E/o5DI9IT
~ .. BURrED C1a.E WARKER
BPM .. BU~ED ppajNE NARI<tR
ER .. ELECTRtC RISER
rr .. aECTRlC TRJflSFORNER
SS .. SAtlTM'f SEWER
ST .. !TORN 5EWER
m .. TElEPHOHE ~
J2J. - UCKT POLt (LP)
.." POWER POlL (PI')
L n- URJlY RISER (UR)
___ .. ARE H'YDRANT (FH)
D4 - \YATER VN..~ (\YY)
8 .. WATER WETER (WU~ ;.\
o - SEWER........... MH)
111- GAS IETEll ( ,.
0- GAS VAL~sr sr...".
0" PROPNiE TN<< (PT)
PROPERlY tIlE (PL)
_.._.._.._.._ ~ PL ,_
- - + - - AIlS1RACTjSlJRVE"o\JHt
------------. IlJILI>NG ..... (BLJ '
_____ fAm.lENT ONE
___--:..- CENTERUN!:
--.--.--.- FlOOD ~
400
800
1200
FEET
S ll8"-41'2-4"E
1427'S 00"1.'
30.00':
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be bored 0' to "ot
di,turb IUlturol drainage
clIoon'"
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I
EASEMENT
EXHIBIT C
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A.,
A. .
.rOB
DATE:
DRAFl:
REVIEW:
060608-02
11 05
A.C.
ILCJ.
P.O. BOX 118
EBtlIL '1'X 78249
940-482-8'723 OFftCE
94Q-482-3880 FAX
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