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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: '~ : - 1_' _-= _ 'I z~" -",. a H OO"Uo" ..c 164.25 , 3 ~H 89".. ::; 11 21,' o ' u w i B . I U !' .:S " II!!!! 'I 8r~~~ !:i --=--:-~- 'f o ~ Q o .. ;; ~ "08 liIl: g~z x .00 ~ 0 po- .... 4;;;.. I- .....,11 <C .~. ~ e i ~~!~-c ~~~~f ~O"&~.t ~<o /'" 'I'- ~ #- ,?..::i .:".f? '\)'1'- '\)' " :! ~ i ., :; ,I , :1 , ;1 ii :: " ," 400 800 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 $TAltON 0" PROP~E: TNO< (PO PROPERTY LINE (PI..) -. AO.W::ENT PI.. - _ + - - NlSnw:r/SURYO\JN(' .___m____. _ UNt (BL) ------- [AStWOfT ~E -----CEtfTERUNE - _. - _. - - - FLOOD 8OUHDAR't DENTON MUNICIPAL ,AIRPORT '),'?J -..~ .{ ~/ <? ~q,.~ ~..{j --%- i: DENTOH. CItY or Ow.,.,. AddNlr. WNtClP.&L. RUttDDlG 215 E. WeKlHN(Y STR[[T DEHfOH, TX 71201-4229 p,..,.tty ......-= DENTOtf MUNICIPAL AIRPORT EXHIBIT B EASEMENT EXHIBIT ~BRBH8VR"aun COBPOBA'I!'ZOU lOB P.O. BOX 116 KR1lJl. TX 76249 DATE: 940-482-6'723 omcz DlW'T: 940-482-3680 FAX WSYlll;W: 060603-02 11 05 A.C. H.c.J. 0 Ii '" ~ ""' :! fj '" [ fi l!i ~ ;28 >- -~----; ~.::l~ ~i D, !;j::ih " l<iI~! ~lil'! rJl~ ~'i rJlg !~~ S ;! ~~ll -I A ,- c::l DO~r-\Jl ~. )l.C '0' ~ - I/) CO I <( :>- ~ a:: ~ 0'] Z r.J @ ~ (j ~ I" VI ~ x~u o. m~.. ;.c!~e a..g" tii... = :;:Ill.... e. f!f! ~ ~:g1!.. .ocz:Joo u..o; .!~a.. ~&~~ -%--- LEGEND-.:, .&.~- BENCH""'" (mI) , ""V) .. ~CORNER ..;. .. CXlf'fmClUNG WOHIAlEHT . .. SEARl)(; BAStS lRf .. JROH ROD f"OUND IRS .. 1/2- IRON AOO SET eN> - PlASTIC eN> FCP .. RHCE CORNER POST t.tfCP .. VEl'Al. FCP 'WFCP .. WOOO fCP ( ) .. PlAJ OR DEm CAU. POB .. POINT QF' MnlNHINO POC .. POINT oF OQII~CENEJoIT ROW .. RIQHT-CIF'-W.Y CE "" ~ EASDlEN. OE .. CRAl'fAGE EISEImIT EE .. ELECTRJe EA$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': N er-41'2-4"W ' 1-43.11' ..; ~ . I I 1 , I . I 10 , ,.: CD ! ~ ! i t 0 I , I , [ 7.141 ACRD i j ll8'-41'211"E 1111.13' 111111.59' ;1 ;1 :' <0'0 ",,;: -{ ,l, t, ~..::i ~. 0, 'i ; !i iI This Iecticln of pipainc 10 be bored 0' to "ot di,turb IUlturol drainage clIoon'" N 1 r--~'1 '. I EASEMENT EXHIBIT C sutl-o$! :: :i ;1 'j ,j l' A., A. . .rOB DATE: DRAFl: REVIEW: 060608-02 11 05 A.C. ILCJ. P.O. BOX 118 EBtlIL '1'X 78249 940-482-8'723 OFftCE 94Q-482-3880 FAX ,- , o o tII ... o o CD ~ '. '0 z I- 0 Z ~ i ~~ j: W ~~ :II , ,," i !' ~ "0: 3;: i:! .&~ " - W j!;N - ~, ,. 5~ , ,. (f) - -f.;>: , ~.. l" <( ":13 '1~' "'~ !I ~<S' W ~!! ~ ;' .11 ~ ~~ it ~ ' ~ 9 z '$> /- l" ~~ sq ~~' ::W!.c--=-:C---=.~:"~C0 ----w---~ ~ ~ Il'.1 ~ ~ 0<. 6', J> -fli>; '1<;YQ r- _.._~_.._.._. I -?>Ii>; ~ ~ J!4!!!!lI. -_L.~-:-r- I , '""$tV ~_ S , .'tK 3.It'.oo.oo N I I dJ, -?- ~ '" ~ ~ {:, ~ 'T - -11' ~ $!!!.2. - ...-..!. :... -0. S. :; ~:i: ~' .if B'V~ g ~ ~ ~. 6 c~ ~ 5~ ~~ ~eiS.~~~ is ee ~~~ ~~Cla\~ ~z WID ~l=w kl~8ajl~~~~~~~~ ~i~ ~2~~~~~~~~~~~ ~~~ ~+<1i: ~~i~~~:i' i~~' .~ .. -.t-.lM,.-ClIofl;.OO- $ .9ntl: 3.01.2 N . C , , ! .... i iii ! % I >< > III 'j .. i' ': I z 0' U ~l; . ~g u " III 01 \0 . tooooi o Q ~ . I <~ 8 III 8= :8 ~~~~ ~dc:l& ~ C1>O~ ~~Cl tDCD!:CO =r-co~ ~tj~~ I1l!1TT ~~;~ '. i' ~- 1 -- ~e >- '!5Ii! ~. --" -!,,!J~~~:~ ,~~~~ ~~ ~~!!s~!w~~;~~~~~~ ~~~~~~~~~;~~i~iSg~ ~~~~~~~ ,~S~~~~~~~~f~~J~~~,W I 1:1 I I ~~SS ~~.~~~~ ~tt~~S~ : I :~~~~, ~~~~~~~~~~~~,~~ :~l i i : &-.0 I!OO i I ! II ~ . >~~M~i5I;;::;liil! ~X~O i I ! II :