Loading...
Ordinance No. 5,4914M AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BATEXAS, ACCEPTING THE YTOWN OF BRIDGE OIL COMPANY, FOR AN OIL 4' i LEASE; AUTHORIZING y ' DIRECTING MAYOR AND THE CITY •K OF THE CITY OF BAYTOWN T . ATTESTEXECUTE AND A LEASE AGREEMEN AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. WHEREAS, the City Council of the City of Baytown did authorize the Purchasing Department for the City of Baytown to advertise for bids for an oil and gas lease to be received March 5, 1990; and WHEREAS, o the time and place, when wouldand where the contract be let was published pursuant to the provisions of TEX.NAT.RESOURCES and WHEREAS, all bids were IK and publicly read at City Hall at 2:00 p.m., Monday, March 5, 1990, as per published notice to bidders, d, a public hearing!; wY 1990, for the consideration of such bids; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, OF THE CITE` OF BAYTOWN, TEXAS: Section 1e That the City Council of the City of Baytown hereby accepts the bid of Bridge Cil Company, L.P. for an oil and gas lease having determined that their hid represents the fair value of the lease. Section That the City Council of the City of Baytown, Texas, hereby approves an oil and gas lease agreement with Bridge Coil Company, L.P. and authorizes the Mayor and City Clerk of the City of Baytown to execute and attest to the said agreement, a copy of said agreement is attached hereto, marked Exhibit "A," and made a part hereof for intents and purposes® Section This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, R , and PASSED by the affirmative vote of the City Council of the City of Baytown, this the 8th day of March, 1990. ETT 0."BUTTOMayor E E EILEEN P. HALL, City Clerk RANDALL B. STRONG, Oy Attorney 11 STATE OF TEXAS 5 5 OIL AND GAS LEASE 10 COUNTY OF HARRIS 5 This Oil and Gas Lease made this day of , 1990, between the CITY OF BAYTOWN, acting herein through its duly authorized representative, whose address is P. 0. Box 424, Baytown, Texas, 77522, as Lessor, and BRIDGE OIL COMPANY, L.P., as Lessee, whose address is 12377 Merit Drive, Suite 1600, Dallas, Texas 75251. W I T N E S S E T H: 1. Estate Granted. Lessor, in consideration of TEN DOLLARS ($10) and other good and valuable consideration in hand paid, of the royalties herein provided, and of the covenants and agreements hereinafter contained on the part of the Lessee to be kept and performed, hereby GRANTS, LEASES and LETS exclusively unto said Lessee, its successors and assigns, for the sole and only purpose of investigating, exploring, prospecting, drilling and operating for, developing, producing, removing and marketing oil and gas (for the purposes of this lease, references to "oil and gas" shall include oil, gas, casinghead gas and the by- products thereof, and such other hydrocarbon substances and sulphur as are produced with, incidental to and as a part of the production of oil or gas only, any other minerals being specifically excluded from this lease), to produce, save, take care of, treat, store and transport and own said products, the lands in Harris County, Texas, described in Exhibit "A" which is attached hereto and made a part hereof for all purposes, which lands are sometimes referred to herein as the "leased premises". For the purpose of calculating certain payments hereinafter provided for, said land is estimated to comprise 100 acres, whether it actually comprises more or less. 2. Primary Term. Subject to the other terms and provisions herein contained, this lease shall be for a term of three (3) years from this date (called "primary term"), and as long thereafter as oil or gas is produced in paying quantities from the leased premises or so long as this lease may be continued in force and effect under the other terms and provisions hereof. 3. Royalties. As used in this paragraph 3, the "royalty share" means twenty per cent (20%) Lessor reserves, and Lessee covenants and agrees for Lessee, its heirs, successors and assigns: A. To deliver to Lessor, or at Lessor's option to deliver to the credit of Lessor to the pipeline to which Lessee may connect its wells the royalty share of all oil (which term shall include all condensate and other liquid hydrocarbons which are or can be extracted or removed from oil or gas by any extraction methods provided for herein) produced and saved by Lessee from said land, or from time to time, at the option of Lessee, to purchase such oil and to pay Lessor therefor the highest posted market price for oil of similar kind and quality prevailing in the field where produced on the day of purchase, the royalty share in either case to bear no part of the cost of treating oil to render it - 2 - marketable pipeline oil. Lessor's royalty share will bear no cost of any kind other than production taxes, if any. B. To pay Lessor on gas and casinghead gas, or other gaseous substance, produced from said land, and sold or used off the premises (and not processed as hereinafter provided), the royalty share of the market value at the well of the gas so sold or used. If such gas shall be processed in an extraction, absorption or similar plant for the extraction of liquidhydrocarbons, Lessee shall pay to Lessor the royalty share of the market value of all gasoline and other products extracted from such gas or casinghead gas together with the royalty share of the market value of the residue gas. For purposes hereof, the term "market value" shall mean the price being paid for Lessee's share of the gas at the time such gas is produced by a gas pipeline purchaser which is unaffiliated by ownership or common control with the Lessee. Unless Lessor or Lessor's representative consent to any such gas purchase contract, which has in fact been arrived at through good faith, arm's-length negotiations, then Lessor shall be deemed to have elected to take the royalty share of gas in kind; for the term of such contract. Should Lessor elect to take its royalty gas in kind, then Lessor and Lessee agree that the royalty share of such gas shall be delivered to Lessor at a single point on Lessee's gathering line on _ 3 the leased premises designated by Lessor. Lessor shall install and maintain, at its sole cost and expense, the necessary pipelines, connections, valves, meters and other facilities for the delivery of said royalty gas to Lessor, at the designated delivery point. Lessor shall assume full responsibility for handling and using said royalty gas from said delivery point. C. To deliver to Lessor, or at Lessor's option, to sell for Lessor's account and account to Lessor for, the royalty share of such other mineral substances or the market value thereof, as may be produced incidental to and as a part of or mixed with oil, gas and other gaseous or liquid hydrocarbons. The royalties retained by Lessor shall be free and clear of any and all costs and charges whatsoever, including but not limited to, costs of development, production, dehydration, compression and transportation and other similar and related costs and transportation surcharges. All gross production, windfall profits and severance taxes assessed against the royalties retained by Lessor shall be paid by Lessor. All other taxes, except ad valorem taxes assessed against Lessor's retained royalty, if any, shall be paid by Lessee. 4. Shut-in Gas Royalties. While there is a gas well on the leased premises capable of producing gas in paying quantities, • from which gas is not being produced or sold, Lessee may pay to - 4 - L� Lessor, as royalty, on or before ninety (90) days after the date on which (1) such well is shut-in or (2) this lease ceases to be otherwise maintained as provided herein, whichever is the later date, and thereafter at annual intervals on or before the anniversary of the date the first payment is made, the amount of shut-in royalty hereinafter provided for, and, if such payment is made or tendered, it shall be considered that for the full ensuing year gas is being produced from such well in paying quantities, and the intermittent production of gas during such year shall not render necessary any new or additional payment of shut-in gas well royalty, but Lessee shall account to Lessor for the royalty on such gas actually produced and sold or used off the premises in accordance with the provisions of Paragraph 3. For the purposes of this lease, the term "gas well" shall mean any well so classified by the Railroad Commission of Texas. The amount of shut-in royalty payable shall be the sum of One Hundred Dollars ($100.00) per net acre for the first shut-in year and One Thousand Dollars ($1,000.00) per net acre for each subsequent shut-in year. Payment shall be made to the Lessor by directing payment to Lessor's City Manager. Notwithstanding the payment of such shut-in gas well royalty, Lessee shall be and remain (a) under the continuing Y Y, 9 obligation to use all reasonable efforts to find a suitable market for said gas, and to commence or resume marketing same when a suitable market is available, and (b) under the obligation to continuously develop the lands then subject to this lease and - 5 - to drill such wells thereon as may be necessary to protect the same from drainage by wells on adjoining or nearby land. 5. partial Releases. Lessee may at any time or times execute and deliver or place of record a release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or portions and be relieved of all obligations except prior obligations and obligations for surface damages as to the acreage surrendered, and thereafter any payments dependent on the number of acres then subject to this lease shall be reduced in proportion that the acreage covered hereby is reduced by said release or releases. 5. Operations Conducted After Expiration of Term. if at the expiration of the primary term oil or gas is not being produced in paying quantities from the lands covered by this lease or lands pooled therewith, but Lessee is then engaged in operations for drilling or completing any well thereon, this lease shall, nevertheless, remain in force so long as Lessee conducts such operations and, if production of oil or gas in paying quantities is obtained, then this lease shall remain in force so long as such production continues in paying quantities in accordance with the terms hereof. Provided further, if any production of oil or gas in paying quantities has been obtained in any well drilled by Lessee, and such production should cease from any cause, this lease shall not terminate if Lessee commences additional drilling or reworking operations within ninety (90) days following such cessation and thereafter diligently prosecutes drilling or reworking operations upon said land with no cessation of more than ninety (90) consecutive days, • and if such activity results in the production of oil or gas in paying quantities, then this lease shall continue in force for the duration of such production in accordance with the terms hereof. "Operations for drilling" or "drilling operations" shall mean the actual process of drilling a well in search of oil and/or gas with adequate tools. 7. Use of Surface Restricted; Surface Damages and Restoration. (a) Except as expressly provided herein, without Lessor's written consent, no surface operations shall be conducted upon the leased premises. If Lessor grants such consent, or if Lessor elects to require Lessee to drill an offset well to protect the leased premises from drainage in accordance with the provisions of Paragraph 17 hereof, the following provisions shall govern Lessee's use of the surface: (1) Lessee agrees to hold, save and protect Lessor safe and harmless of and from any and all claims that may arise directly or indirectly from its operations on the leased premises, including, but not limited to claims for personal injury or death, property damage or loss, fires, blowouts, leaks, spills, pollutants, contamination and explosions and other causes. Lessee agrees to keep and maintain in force adequate casualty, liability and property damage insurance against all risk and all hazards with coverage in the amounts specified in Exhibit "B" attached hereto, and to name Lessor as an additional insured thereon and to 7 - provide written proof of such coverage at Lessor's request. (2) Lessee shall pay to Lessor reasonable compensation for all damages caused by its operations to the surface, roads, trees, landscaping, fences, sidewalks, subsurface fresh water strata, driveways, buildings, playground equipment, utility interruptions, parklands, drainage watersheds, shrubbery, parking areas, curbs and gutters or any other property or improvement of Lessor. a. In the event Lessee uses any of Lessor's roadways, parking areas, bridges or improvements for access to any drillsite, whether such drillsite is located on the lease premises or otherwise, then and in such event, Lessee shall, prior to such use, post a bond in an amount to be set and established by the Lessor and which bond shall be issued and signed by a corporate surety approved by Lessor to indemnify and protect Lessor from any damage of any kind to or destruction of any of Lessor's paved roadway, parking area, curb or gutter, bridges, or drainage or utility facilities. The bond amount shall be adequate to insure repair of any such damages. b. In addition to and not in substitution of the damages provided from herein, and as additional consideration for this lease, Lessee agrees to pay $10,000.00 per well per location, with four acres 8 being a standard location. Also, Lessee shall pay to Lessor the sum of $10,000.00 per surface acre for each additional acre in excess of the standard location of four acres used by Lessee for its operations hereunder. If less than a full acre is used, the amount paid shall represent a proportionate pro -rata amount. Prior to the commencement of each drilling operation, Lessee shall cause the drillsite, including access roads, to be surveyed and a plat thereof made, and furnish the survey plat to Lessor a minimum of ten (10) days prior to the commencement of such operations. Payment of said sum by Lessee's check shall be made contemporaneously with the delivery of the survey plat. (3) Lessee agrees that it shall permit Lessor, its agents, attorneys and representatives (at their sole risk and expense) access to the drillsites to inspect the facilities and insure compliance herewith and with the terms of this lease and of the Code of Ordinances of the City of Baytown as it is now or may hereafter be constituted. (4) During operations (whether drilling, completion or workover) and thereafter, Lessee shall: a. Fully abide in all respects with the Code of Ordinances of the City of Baytown as it is now or may hereafter be constituted. b. operate and power any well by electric motors and • lubricate and insulated in a manner to reduce and maintain any noise to a reasonable standard. c. Take necessary steps to keep dust to a minimum. d. Restrict all agents, contractors, employees and representatives to the immediate area of the drill site and advise all of such employees to park and congregate in such restricted area. e. Keep the drillsite and immediate area free of trash and debris. f. Confine the drillsite to the smallest possible area. g. Restore the surface to a clean and even condition, remove all boards and building materials, scrap or waste products and/or chemicals, oil, drilling mud, cement or other materials, to provide a suitable, nontoxic and nonhazardous condition, including removal and replacement of the surface if necessary. h. Employ portable tanks rather than pits for the retention or storage of drilling fluids, salt water, chemicals and the like. i. Prevent the overflow or spillage of oil, salt water or chemicals on the surface of the premises so that vegetation can grow. j. Take steps in restoring the surface to provide for adequate drainage. 10 - k. Take such steps as may be necessary to prevent salt • water, waste materials, chemicals, acid or oil from running or flowing on or across the premises or into creeks, gullies, ditches or ravines that flow across or on the premises, whether by overflow or watershed caused by rain. 1. Use best efforts to prevent agents, contractors, representatives or employees from carrying firearms, alcohol or drugs onto the premises. M. Pay a penalty of $250.00 per day for each day in which cleanup and restoration work called for herein is not completed within thirty (30) days after the workover or completion rig is released. n. Flare no gas except for such limited periods of time as reasonably necessary for testing purposes. o. Keep all areas free of trash and debris and keep trash barrels, if any, emptied and of neat appearance. p. Confine workover operations to the hours of 6:00 a.m. to 7:00 p.m. (except for emergencies). g. Maintain the locations and wells in a sightly manner with clean stone, gravel or shell, fences and appropriate landscaping. r. Prevent at all times damage to or destruction of any decorative or hardwood trees or outside the drillsite. r: (b) Nothing in this section shall prevent Lessee from • drilling to or through the subsurface of the leased premises by directional techniques. 8. Removal of Property_. Except as provided herein, Lessee shall have the right at any time during or within ninety (90) days after the expiration of this lease to remove all property and fixtures placed by Lessee on said land, excluding the right to draw and remove all casing unless specifically authorized in writing by lessor. Lessee will bury all pipe lines at least 36 inches below the surface, and no well shall be drilled within two hundred (200) feet of any building now on said land without Lessor's consent. 9. Assignability. The rights of either party hereunder may be assigned, transferred or farmed out in whole or in part. No change or division in ownership of the land, rentals or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee, and no change or division in such ownership shall be binding on Lessee until thirty (30) days after Lessee shall have been furnished by certified United States Mail at Lessee's principal place of business with a certified copy of the recorded instrument or instruments evidencing same. Except as provided in the next sentence to the contrary, the rights of the Lessee hereunder may not be assigned in whole or in part without the express written consent of the Lessor hereunder, which consent shall not be unreasonably withheld. Lessee shall have the right to make assignments to its working interest partners without the prior - 12 - written consent of the Lessor so long as only Lessee is the • operator of the wells. Such assignment shall not be effective unless the assignee or assignees thereunder first agree in writing to be bound by the terms and provisions of this lease. In the event this lease shall be owned in whole or in part or in undivided interests by more than four persons or entities, all persons or entities owning working interests hereby agree and designate the registered agent of Lessee as their registered agent for service of process and as their attorney-in-fact for the purposes of executing any release of this Oil and Gas Lease. In the event of assignment hereof in whole or in part, liability for breach of any obligation hereunder shall rest upon the Lessee hereunder as well as any assignees of said lease jointly and severally; provided, however, that Lessee or any assignee of Lessee who is not an owner of a working interest in said lease at the time of such breach shall no longer be liable to Lessor for any such breach if Lessor shall have consented in writing to such assignment. Lessor shall have the right to assure itself of the financial responsibility of any proposed Assignee (except as provided in the second sentence of this Paragraph) and Lessor may require any such proposed Assignee to furnish a bond or other security to ensure its performance hereunder. 10. Covenant to Reasonably Develo . After the discovery of oil or gas in paying quantities on said premises, Lessee shall develop the leased premises as would a reasonably prudent operator under the same or similar circumstances. � 0 - 13 - 11. Force Majeure. All express or implied covenants of this • lease shall be subject to all Federal and State laws, Executive Orders, Rules or Regulations, and this lease shall not be terminated in whole or in part, not Lessee held liable in damages for failure to comply therewith, if compliance is prevented by, or failure is the result of, any such valid Law, Order, Rule or Regulation, or if prevented by an Act of God or of the public enemy. If oil or gas is discovered but production or further operations are prevented by any of the causes enumerated in this Paragraph 11, this lease shall be considered producing and shall continue in full force and effect until Lessee is permitted to produce the oil or gas, and as long thereafter as oil or gas actually is produced in paying quantities as herein provided. Lessee agrees to use its best efforts to cure the cause of any delay so as to commence or recommence operations or production as soon as practicable and to promptly inform Lessor as to causes of delay and efforts to cure same. 12. No Warranty of Title. Lessor believes that it is the owner of the mineral estate covered by this lease, but it makes no warranty of title to the Lessee. Lessee agrees to give to Lessor a copy of its title opinion as to the ownership of the mineral estate covered by this lease. It is agreed, however, that if Lessor owns or controls a mineral interest in the leased premises less than the entire fee simple estate, then the royalties and other monies to be paid to Lessor shall be reduced proportionately. - 14 - 13. Notices. Any and all notices, reports or information • required or permitted to be given hereunder shall be deemed to have been delivered and received when delivered in person to the party directed, or five (5) days after being deposited in the United States mail, postage prepaid, certified with return receipt requested, addressed to Lessor or Lessee at their respective addresses stated above. The parties may change their respective addresses for receiving notices hereunder by giving notice of such change in the manner above provided. 14. Use of Water. Lessee shall have free use of water from said land, except water from Lessor's wells, reservoirs, and tanks for drilling operations hereunder. Lessee shall not drill or operate water wells or take water in such way as to injure the water wells of Lessor or interfere with or restrict the supply of water to Lessor. Lessee shall not use fresh or potable water for secondary recovery or waterflood operations. In drilling oil or gas wells, Lessee shall advise Lessor of any fresh water bearing formations encountered and shall upon request furnish Lessor any and all logs made by Lessee from the surface of the ground to the bottom of the surface casing. Upon abandonment of any well drilled for oil or gas, Lessee shall offer to turn it over to Lessor, with the hole in suitable condition to be completed as a water well in a fresh water formation. Lessor shall have thirty (30) days after receipt of such offer in which to elect to take over such well, unless a drilling rig is on location, in which case, the period shall be shortened to twenty-four (24) hours. It is understood if Lessor takes over the well and pipe, Lessor - 15 - will assume all future responsibility for the well above the plugs which shall be set by Lessee at all depths below the deepest fresh water sand. 15. Pooling and unitization. Lessee is hereby granted the right to pool or unitize, as to any one or more formations, the land covered by this lease or any part thereof with any other land, lease, leases, mineral estates or parts thereof for the production of oil, gas and other minerals and their respective constituent products. Units pooled for oil hereunder shall not exceed forty (40) acres each in area and gas units shall not exceed six hundred forty (640) acres each in area, each plus a tolerance of ten percent (10%), provided that if any federal or state law, executive order, rule or regulation shall prescribe or permit a spacing pattern for the development of the field or allocate a producing allowable on acreage per well, then any such units may embrace as much additional acreage as may be so prescribed or permitted or as may be used in such allocation or allowable. Lessee shall file written unit designations in the county in which the premises are located. Such units may be designated either before or after the completion of wells, and Lessee may reduce, enlarge, reform, modify or dissolve such units at any time prior to the discovery of oil or gas on the pooled acreage, or after discovery of oil or gas at any time subsequent to the cessation of production thereof by filing a written declaration to such effect in the same county. A unit shall be effective on the date set forth in said declaration or if said declaration provides no effective date, then it shall be - 16 -- effective upon filing of the declaration. Drilling operations on or production from any part of the pooled acreage shall be treated as if such drilling operations were upon or such production was from the land described in this lease whether or not the well or wells are located on the leased premises. The entire lease acreage shall be treated for all purposes, except the payment of royalties on production from the pooled unit, as if it were included in such unit. In lieu of the royalties herein provided, Lessor shall receive on production from a unit so pooled only such portion of the royalty stipulated herein as the amount of Lessor's acreage placed in the unit or Lessor's royalty interest therein on an acreage basis bears to the total acreage pooled in the particular unit involved. Formation of one or more units shall not exhaust Lessee's right to form additional units, and any subsequently formed units need not conform in size, shape, area or stratum with other units. Notwithstanding any provisions hereof to the contrary, if a part of the leased premises is included within a pool or proration unit, drilling operations or production from the unitized premises shall maintain this lease only as to that portion of the leased premises within such pool or unit, regardless of whether such unit is located totally within the acreage covered by this lease or not. As to that portion of the leased premises not included in a unit after expiration of the primary term this lease may be maintained only by production or by operation of other provisions herein which pertain to reworking operations, drilling operations or additional. drilling - 17 - operations. Within sixty (60) days after the expiration of the primary term, Lessee agrees to release in recordable form all acreage not held by production in paying quantities or by operations as elsewhere herein provided. 16. Compliance With Regulatory Authorities. The Lessee agrees that it is bound by the rules of both the Texas Railroad Commission and the City of Baytown as they may apply. 17. Offset Obligation. Should a well producing oil and/or gas in paying quantities be completed within 200 feet of the leased premises, or at any distance from the leased premises which is capable of draining oil or gas from the leased premises, and should such production continue for at least nine (9) months, Lessor may, at its sole discretion, elect to require Lessee to drill an offset well on the leased premises to prevent or minimize drainage of oil or gas from the leased premises. The location of such offset well shall be designated by Lessor, but must be as close as possible to the point on the premises nearest the well to be offset which is reasonably suitable for drilling purposes. If Lessor elects not to require the drilling of an offset well, Lessee will have no liability to Lessor for drainage of oil or gas from the premises. The obligation to drill offset well shall not apply where (i) the well to be offset is separated from the leased premises by a well, producing from the same horizon, from which Lessor is receiving royalties or (ii) there is already on the leased premises a well within 200 feet of the outside boundary thereof which is producing from the same horizon. In the event Lessee shall fail to timely commence - 18 - operations for the drilling of any required offset well, then and in such event, Lessee shall promptly file of record in the official Public Records of Real Property of Harris County a full release of this lease except as to those areas which are included within units created under the provisions hereof on which there is production or operations, and except for two acres around each well located on the leased premises which is not pooled with other land. 18. Lessor's Representative. Lessor hereby designates the City Manager of the City of Baytown as its agent for purposes of receiving all notices provided for herein. wherever in this lease consent, authorization or approval of the Lessor is required or permitted, such consent, authorization or approval may be granted by the City Manager. The City Manager, may, at his discretion, refer any such matter to the City Council for such consent, authorization or approval. EXECUTED as of the date first above written. ATTEST: LESSOR CITY OF BAYTOWN EILEEN P. HALL, City Clerk EMMETT 0. HUTTO, Mayor S:5:17:3 • - 19 - EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN LETTER OF NOMINATION TO LEASE CITY OF BAYTOWN MINERALS IN THE BROWNWOOD SUBDIVISION IN THE NATHANIEL LYNCH SURVEY, A-44 IN HARRIS COUNTY, TEXAS DATED JANUARY 12, 1990 FROM BRIDGE OIL (U. S. A.) INC. TO THE CITY OF BAYTOWN, TEXAS. The following Lots in Block A of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 61 of the Map Records of Harris County, Texas. LOT NOS. I through 14 inclusive, 18, 21 through 23 inclusive, and 28 through 30 inclusive. The following Lots in Block AA of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 61 a•f the Map Records of Harris County, Texas. LOT NOS. I through 5 inclusive, an undivided one-half (1/2) interest to Lot 7, 8 through 10 inclusive, an undivided one-half (1/2) interest to Lot 11, 15 through 17 inclusive, Lots B, C, D, E and F (a resubdivision of Lots 20, 21, 22 and 23), 24, 25, and 27 through 29 inclusive. The following Lots in Block B of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 61 of the Map Records of Harris County, Texas. LOT NOS. I through 10 inclusive, 12 through 25 inclusive, 27 and 28. The following Lots in Block BB of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 17, Page 15 of the Map Records of Harris County, Texas. LOT NOS. I through 8 inclusive, and 10 through 15 inclusive. The following Lots in Block F of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 27, Page 58 of the Map Records of Harris County, Texas. LOT NOS. 2 through 4 inclusive, and 7 through 17 inclusive. 11 FXHI13IT "A" PAGE 2 The following Lots in Block KE of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 41, Page 55 of the Map Records of Harris County, Texas. LOT NOS. An undivided one-half (1/2) interest in Lot 5, 6 through 24 inclusive, and the West one-half (W/2) of Lot 25. The following Lots in Block XD of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 41, Page 55 of the Map Records of Harris County, Texas. LOT NOS. I through 11 inclusive, 15 through 19 inclusive, 23, the East one-half (E/2) of Lot 22, 25 through 30 inclusive, 32, and 34 through 43 inclusive. The following Lots in Block XF of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 41, Page 55 of the Map Records of Harris County, Texas. LQT NOS. 4, 5, 9, 10, 14 and 15. The following Lots in Block XC of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 38, Page 75 of the Map Records of Harris County, Texas. LOT NOS. t through 10 inclusive, 12 through 19 inclusive, and 23 through 42 inclusive. 7he following Lots in Block XA of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 35, Page 68 of the Map Records of Harris County, Texas. LOT NOS. I through 11 inclusive, and 13 through 30 inclusive. The following Lots in Block XB of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 35, Page 68 of the Map Records of Harris County, Texas. LOT NOS. 1 through 30 inclusive. EXHIBIT "A" PAGE 3 The following Lots in Block V of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 18, Page 66 of the Map Records of Harris County, Texas. LOT NOS. 9, 11 and 12. The following Lots in Block X of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 25 of the Map Records of Harris County, Texas. LOT NOS. I through 9 inclusive, 12 through 16 inclusive, West one-half (W/2) of 18, and 19 through 27 inclusive. The following Lots in Block Y of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 25 of the Map Records of Harris County, Texas. LOT NOS. I through S inclusive, 8, 9, and 12 through 20 inclusive. The following Lots in Block Z of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 14, Page 25 of the Map Records of Harris County, Texas. LOT NOS. 12, 13 and 17. The following Lots in Block C of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 16, Page 37 of the Map Records of Harris County, Texas. LOT NOS. 2, 3, 6, 8, 10 through 30 inclusive, and 34 through 37 inclusive. The following Lots in Block 1 of the Linwood Park addition of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 48, Page 56 of the Map Records of Harris County, Texas. LOT NOS. 1 through 21 inclusive. EXHIBIT "A" PAGE 4 The following lots in Block 2 of the Linwood Park addition of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 48, Page 56 of the Map Records of Harris County, Texas. LOT NOS. I through 16 inclusive. The following Lots in Block D of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 18, Page 2 of the Map Records of Harris County, Texas. LOT NOS. 1, 2, 5, 6, 10 through 21 inclusive, and 24 through 28 inclusive. The following Lots in Block K of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 65, Page 274 and 275 of the Map Records of Harris County, Texas. LOT NOS. 5, 6, 8 through 22 inclusive, 24, and the East 55 feet of 25. The following Lots in Block W of the Brownwood Subdivision within the Nathaniel Lynch Survey, A-44 according to the map or plat records thereof and recorded in Volume 17, Page 36 of the Map Records of Harris County, Texas. LOT NOS. 1, 2, and 3. The above descriptions are intended to include such parts, if any, which may underlie roads, streets, sidewalks, alleys, rights -of way and easements on or adjacent to said lots and blocks and all City Parks located within said lots and blocks of the Brownwood Subdivision and Wooster Townsite. • 11 MAN 4.96194 acres of land, more or less, being a part of Wooster Outlot No. 4 within the Nathaniel Lynch Survey, A-44 of Harris County, Texas and being described in five (5) tracts of land as follows: 0.510 acres of land, more or less, and being described by metes and bounds as follows: BEING a 0.510 acre of land out of a 17.663 acre --ract in Outlot No. Four (4) of Wooster in the Nathaniel Lynch Survey, Abstract 44, Harris County, Texas; BEING the same property conveyed by G. V. Meigs and Jessie Mae Meigs to R, A. Campbell and Janie Elease Campbell by deed dated July 4, 1963, of record in Volume 5182 at Page 368 of the Deea Records oz Harris County, Texas, and described by metes and bounds as follows: BEGINNING a.f- ---1/4" galvanized iron Dire set in tope a i I Northwesterly line of Mapleton Street, based on 6 0 feet in width, and being the Southwest corner of the tract herein described, said point being North 52 deq. 10' 10" East 377.62 feet Lrom a 3/4" galvanized iron D1pe set in the Northwesterly iy line of said Hapieron Street and in the Easz line of Linwood Park Subdivision; THENCE from she point of beginning North i4 ileg. _2 min. 0 sec. East 303.03 feet to a 1-1/4" galvanized iron wipe for corner 7 11 '1 F outh 37 deo. 49 min. 50 sec. East 185.0 Leet to 1-1/4" I - NCE S rialvanized iron Dipe set in the Northwester1v line of �.said Maoletrj.-,-� e t: based Eeet in width, said OO"„t being Sou -,h 52 deux. _'O 0 L 7' min. 10 sec. West _7212.0 feet from a 4"° galvanized i r o'! -i pipe, t'n e South corner of a 0.45 acre tract described in deed dated February 26, 1945, from L. B. Bargainer, et ux, to H. F. Fortenberry recorded in Ajlume 1362 at 59 or the Harris County Deed Recor(ls. THENCE 'S o Ut fel decd. 10 min io e c We s t with he j N orthwest e r I y inc f said Macieton _Itreez )4kJ.J gee,- to the PLACE OF BEC, I NN I NG, arid cq Jo nSame,)i,rainin 0 , ,jescr !-ed in the deed rrom D. T. Save 1".' to Roy A. Meyer, aric wife, Joyce H. Meyer, filed February 9, 1,961, in the County Clerk's office of Harris County, Texas, recorded in Volume 4273 at Page S81 of the Deed Records of Harris County, Texas. 11 K] 193" ir. M44115MU 2-1/2 acres of land, more or less, and being described by metes and bounds as follows: BEGINNING at a 1/2 inch iron bar located in the South property line of Mapleton Avenue, said bar being the Northwest corner of Lot or Tract No. Ten (10) in Block "K" of Wooster; THENCE South 38 dea. 17 min. East, a distance of 492.1 feet to a 1/2 inch iron bar on water's edge of Scott's Bay; THENCE in a Southwesterly direction, along the meanders of Scott's Bay, a distance of 219.5 feet to a 1/2 inch iron Dipe; THENCE North 33 deg. 17 min. West, a distance of 572 feet to a stake; THENCE North 51 deg. 43 min. East, along the South property line - F -.Lne of Mapieton Avenue, a distance of 205.09 feet to the POINT 0 BEGINNING; and containing two and one-half (2-1/2) acres of land; this tract includes all of Lot or Tract Nos. Nine (9) and eight (8) and Dart of Seven (7), Block "KII, and cart of Lot Nineteen (19) of the Town of Wooster, Harris County, Texas. .39 acres of land, more or less, being described by metes and bounds as follows: BEGINNING at a stake located on the South property line of ,Man!-2ton Avenue and South 51 deg. 43 min. West, a distance of 205.09 lest from rom the Northwesr corner or Tract or Lot No. 'Pen k (10) in Bloc "K11 Dt Wooster; ''HENCE o U t n 313 17 min. East, a distance of 572 feet to a 1/2 inch iron pipe on water's edge of Scott's Bay; THENCE in a Southwesterly direction, along the meanders of Scott's Bay, a distance of 44.3 feet to a stake; THENCE North 318 deg. 17 min- West, a distance of 605 feet to a 1/2 inch iron bar; THENCE along the South property line of Mapleton Avenue, North 51 c=lean 43 in. East, a distance of 28.86 feet to the POINT 5 BEGINNING, and containing .39 acres of land, this tract includes Part of lot or tract No. Seven (7) in Block "V and part of Lot No. Nineteen (19) of the Town of Wooster. I=14:59419 1.14 acres of land, more or less, being described by metes and bounds as follows: BEGINNING at the most Southerly corner of that certain tract or oarcel of land conveyed by L. R. Bargainer et ux, to H. F. Fortenberry by deed dated November 8, 1945, and recorded in Volume 1410, Page 361 of the Deed Records of Harris County, Texas, for Point of Beginning of tract herein described., same being a 3/41, iron rod set in the Northwest right-of-way line of Mapleton Street in the City of Baytown, said rod being located South 52 deg® 10 min® 10 sec. West a distance of 330 feet from the Southeast corner of the above mentioned lot or Block 4, said corner being the intersection of the Northwest right-of-way line of Mapleton Street with the West right-of-way line of Iowa Street; THENCE South 52 deg. 10 min. 10 sec. West along the Northwest right-of-way line of Mapleton Street a distance of 213. feet, more or less, to the most Easterly corner of that certain tract or parcel of land conveyed by L. R. Bargainer et ux, to Leroy Gardner et ux, by deed dated October 3, 1960 and recorded in Volume 4189, Page 103 of rhe Deed Records of Harris County, Texas; THENCE North 37 deg. 49 min® 50 sec. West along the Northeast line of said Gardner tract a distance of 185 feet ra a 1/2" iron rod se,,: at the most Northerly corner of said Gardner tract; THENCE South 52 deg. 10 min. 10 sec® West: along i:rie Northwest line of said Gardner tract a distance of 4 feet to a 3/41' iron pipe; '-"HENCE North 37 deco. 49 min. 50 sec® West a distance of 4208 feet to a 31/4" iron pipe; THENCE North 52 dea. 10 min. 10 .sec® East a distance of 217 feet® more or less, to an intersection of a projection of the Southwest line of the aforementioned Fortenberry tract; THENCE in a Southeasterly direction along a projection of the Southwest line of said Fortenberry tract South 37 deg® 49 min. 50 sec. East passing at 10 feet the most westerly corner of said Fortenberry tract and continuing along the southwest line of said Forrenberry tract a total nistance of 227.3 feet, more or less, to the POINT OF BEGINNING and containing within these metes and bounds 1.14 acres, more or less. 11, 0 11 UWAIMPS , I .42194 acres of land, more or less, being described by metes and bounds as follows: Being out of the East 17.9 acres of Lot or Block 4 of the Subdivision of Wooster, Harris County, Texas, and according to MaD thereof recorded in Volume 65, Page 275 of the Deed Records of Harris County, Texas, more particularly described by metes and bounds as -follows: BEGINNING at a point in the North line of Mapleton Ave., which point is South 41 deg. 43 min. West 200 feet from the Southeast corner of said Block 4 at the intersection of the North line of Mapleton Ave. and the West line of Iowa Street, said corner of Block 4 being the most Southerly point of a triangular plot of land hereto fore conveyed by L. R. Bargainer et ux, to A. T. Barqainer said point beginning is further described as the Southwest corner of a z r a ct C) r a ,nveyea �o FN. Langham by L. R. Bargainer et ux, iescr i bed n P e a �)t 'It.'rusc irom P. N. Lanqhafn 7 Joe i,,,eid,Trustc�)e_, dated August 2,9, 119,' 0 recorded in volume ;311-9. I.-laqe 568 of t '-jortgaqe Re,corcjS of Harris County, Texas; THENCE South 'i 'I deg. 43 min. West along the North line of Maoleton Ave. 130 feet, set a stake for corner, the Southwest corner of the tract herein conveved.; THENCE in a Northwesterly direction at right angles to the North line of Mapleton Ave. 217.8 feet set a stake for corner, the Northwest corner of this tract; THENCE North 41 deem 43 min. East- 51-5 feet to the Northwest corner t- i -i a 'z' L a n q h ai,-. tract, wet a stake for corner, the N� u� r t heast r n e r 1t :his -- r a c t ."HENCE, 0 U t','l 7 ieq. ,6 min. ."..ast aloncj e , `.i r 3 a i a 11 g nam ee E -0 - zhe FILACE, 0` LIEGINNING, beinq a u t "If anc,., 'acl-nq 130 feet on 'Mapieton Ave. and 'De�no:1.1 J z e at in width at its North end, and being the same tract of land conveyed by L. is . Barcainer and Clarice Bargainer to 1-1. F. Fortenberry by deed dated November 8, 1945, recorded in Volume 1110, hPaae 36 of the Deed Records of Harris County, Texas. EXHIBIT "B" INSURANCE Lessee shall obtain and at all times while operations are being carried on hereunder maintain in effect insurance policies as to the following risks: (a) Workmen's Compensation and Employer's Liability Insurance to fully comply with the laws of the State of Texas and to cover all employees working on the leased premises or leases or in connection therewith. (b) General Liability (Bodily Injury) Insurance with limits of not less than $500,000 for each occurrence; and General Liability (Property Damage) Insurance with limits of $100,000 for each occurrence. (c) Automobile Public Liability Insurance covering all automotive equipment used hereunder with limits of not less than $250,000 for Bodily Injury for each person and $500,000 Bodily Injury for each occurrence and $100,000 for Property Damage. (d) Excess Liability (Umbrella Coverage) of not less than $10,000,000. (e) OEE/Weil Control of not less than $5,000,000. 0