ConocoPhillips Company v. Vaquillas Unproven Minerals, LTD.

ACCEPTED
04-15-00066-CV
FOURTH COURT OF APPEALS
SAN ANTONIO, TEXAS
2/10/2015 1:57:24 PM
KEITH HOTTLE
CLERK
04-15-00066-CV
No. _______________
In the Court of Appeals 4th COURT FILED IN
OF APPEALS
SAN ANTONIO, TEXAS
for the Fourth Judicial District of Texas
02/10/2015 1:57:24 PM
San Antonio, Texas KEITH E. HOTTLE
Clerk
CONOCOPHILLIPS COMPANY,
Petitioner,
V.
VAQUILLAS UNPROVEN MINERALS, LTD.,
Respondent.
From Cause No. 2014 CVQ000 438 D4
406th Judicial District Court, Webb County, Texas
Honorable Oscar J. Hale, Jr., Presiding Judge
Unopposed Petition for Permission to Appeal
Adolfo Campero
Michael V. Powell State Bar No. 00793454
State Bar No. 16204400 Email: acampero@camperolaw.com
Email: mpowell@lockelord.com Campero & Associates, P.C.
Cynthia K. Timms 315 Calle Del Norte, Suite 207
State Bar No. 11161450 Laredo, Texas 78041
Email: ctimms@lockelord.com Tel: 956-796-0330
Elizabeth L. Tiblets Fax: 956-796-0399
State Bar No. 24066194
Email: etiblets@lockelord.com
Locke Lord LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Tel: 214-740-8520
Fax: 214-740-8800
ATTORNEYS FOR PETITIONER
CONOCOPHILLIPS COMPANY
IDENTITY OF PARTIES AND COUNSEL
Petitioner: Counsel for Petitioners:
ConocoPhillips Company Michael V. Powell
State Bar No. 16204400
Email: mpowell@lockelord.com
Cynthia K. Timms
State Bar No. 11161450
Email: ctimms@lockelord.com
Elizabeth L. Tiblets
State Bar No. 24066194
Email: etiblets@lockelord.com
Locke Lord LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Tel: 214-740-8520
Fax: 214-740-8800
Adolfo Campero
State Bar No. 00793454
Email: acampero@camperolaw.com
Campero & Associates, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
Tel: 956-796-0330
Fax: 956-796-0399
Respondent: Counsel for Respondent:
Vaquillas Unproven Minerals, Ltd. Gregg Owens
State Bar No. 15383500
Email: gregg.owens@haysowens.com
Robert G. Hargrove
State Bar No. 09303300
Email: rob.hargrove@haysowens.com
Hays & Owens L.L.P.
807 Brazos Street, Suite 500
Austin, Texas 78701
Tel: 512-472-3993
Fax: 512-472-3883
i
A. Michael Jung
State Bar No. 11054600
Email: michael.jung@strasburger.com
Strasburger & Price, LLP
901 Main Street, Suite 4400
Dallas, Texas 75202-3794
Tel: 214-651-4724
Fax: 214-651-4330 (main)
Fax: 214-659-4022 (direct)
Armando X. Lopez
State Bar No. 12562400
Email: mandox@rio.bravo.net
Law Offices of Armando X. Lopez
1510 Calle Del Norte, Suite 16
Laredo, Texas 78041
Tel: 956-726-0722
Fax: 956-726-6049
Raul Leal
State Bar No. 24032657
Email: rleal@rl-lawfirm.com
Raul Leal Incorporated
5810 San Bernardo, Suite 390
Laredo, Texas 78041
Tel: 956-727-0039
Fax: 956-727-0369
ii
TABLE OF CONTENTS
Page
IDENTITY OF PARTIES AND COUNSEL .............................................................i
TABLE OF CONTENTS ......................................................................................... iii
INDEX OF AUTHORITIES......................................................................................v
INFORMATION REQUIRED BY TEXAS
RULE OF APPELLATE PROCEDURE 25.1(d) ................................................vi
STATEMENT OF THE CASE ............................................................................... vii
ISSUE PRESENTED ............................................................................................. viii
STATEMENT OF FACTS ........................................................................................1
A. The Two Leases Contain Retained Acreage Clauses............................ 1
B. The Railroad Commission Adopted Field Rules. ................................. 3
C. This Action. ...........................................................................................4
ARGUMENT AND AUTHORITIES ........................................................................ 5
A. The proper interpretation of the leases is a “controlling
question of law.”....................................................................................5
B. There is a substantial ground for a difference of opinion. .................... 7
C. An immediate appeal from the Amended Order may
materially advance the ultimate termination of the
litigation.................................................................................................8
PRAYER ....................................................................................................................9
CERTIFICATE OF CONFERENCE.......................................................................11
CERTIFICATE OF COMPLIANCE .......................................................................11
CERTIFICATE OF SERVICE ................................................................................12
iii
APPENDIX:
Amended Order On Cross-Motions For Summary Judgment ..........................TAB 1
Defendant's Motion For Summary Judgment ...................................................TAB 2
Plaintiff's Cross-Motion For Partial Summary Judgment And
Response To Defendant's Motion For Summary Judgment ........................TAB 3
Plaintiff's Original Petition ...............................................................................TAB 4
iv
INDEX OF AUTHORITIES
Page(s)
CASES
Johnson v. Burken,
930 F.2d 1202 (7th Cir. 1991) .............................................................................. 6
Jones v. Killingsworth,
403 S.W.2d 325 (Tex. 1965) ................................................................................ 7
RULES AND STATUTES
28 U.S.C. § 1292(b) ...................................................................................................5
TEX. CIV. PRAC. & REM. CODE § 51.014(Vernon Supp. 2014).................. vi, vii, 5, 6
Tex. R. of App. P. 25.1 .............................................................................................vi
Tex. R. of App. P. 28.3 .............................................................................................vi
Tex. R. of App. P. 28.4 ........................................................................................... vii
LAW REVIEWS AND TREATISES
16 Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice &
Procedure § 3930 (3d ed. 2012) .......................................................................6, 7
19 James Wm. Moore, Moore’s Federal Practice & Procedure §203.31[3]
(3d ed. 2014) .........................................................................................................8
v
TO THE HONORABLE COURT OF APPEALS:
ConocoPhillips Company (“ConocoPhillips”), Defendant below, files this
Unopposed Petition for Permission to Appeal regarding an order signed on January
27, 2015 on the parties’ cross-motions for summary judgment. Because the
underlying lawsuit was filed after September 1, 2011, this appeal is governed by
the 2011 amended version of Section 51.014(d)-(f) of the Texas Civil Practice and
Remedies Code and by Rule 28.3 of the Texas Rules of Appellate Procedure.
Respondent Vaquillas Unproven Minerals, Ltd. (“Vaquillas”), Plaintiff
below, did not oppose Petitioners’ Motion for Interlocutory Appeal filed in the
district court and has agreed to the relief requested in this Petition.
INFORMATION REQUIRED BY TEXAS
RULE OF APPELLATE PROCEDURE 25.1(d)
In accordance with Texas Rule of Appellate Procedure 28.3(e)(1),
Petitioners provide the following information required by Texas Rule of Appellate
Procedure 25.1(d):
(1) Trial court, style, and case number:
• 406th Judicial District Court, Webb County, Texas,
• Vaquillas Unproven Minerals, Ltd., Plaintiff v. ConocoPhillips
Company, Defendant
• Case Number: 2014 CVQ000 438 D4.
vi
(2) ConocoPhillips Company desires to appeal the Amended Order on Motions
for Summary Judgment signed by the district court on January 27, 2015.
That Amended Order is attached at Tab 1.
(3) This appeal is taken to the Court of Appeals for the Fourth Judicial District,
San Antonio, Texas.
(4) This Petition for Permission to Appeal is filed by ConocoPhillips Company.
(5) This Petition is filed in accordance with Texas Civil Practice & Remedies
Code § 51.014(d) & (f) (Vernon Supp. 2014). If the Court accepts this
appeal, it will be accelerated and governed by Texas Rules of Appellate
Procedure for pursuing an accelerated appeal. See TEX. CIV. PRAC. & REM.
CODE § 51.014(f) (Vernon Supp. 2014). This is not a parental termination or
child protection case, as defined in Texas Rule of Appellate Procedure 28.4.
STATEMENT OF THE CASE
Plaintiff Vaquillas is the lessor on two oil, gas, and mineral leases with
ConocoPhillips. One of the leases encompasses 26,622.79 acres and the other
includes 6,740 acres, both in Webb County. Both leases contain a retained acreage
clause, which the parties interpret differently. The leases provide the lessee
(ConocoPhillips) may retain at least 640 acres for each producing or shut-in gas
well, but Vaquillas argues the Railroad Commission’s Field Rules apply under the
leases to limit the retained acreage to 40-acre units for each gas well. Vaquillas
vii
claims that ConocoPhillips must release 15,351 acres in addition to the nearly
9,700 acres it has already released so that ConocoPhillips would be retaining 8,320
acres out of the original 33,362.79.
The parties’ dispute turns on the proper interpretation of the retained acreage
clause in connection with the Field Rules adopted by the Railroad Commission for
the particular field included in the leases. Vaquillas argues the Field Rules dictate
that the retained acreage for each well (all of which are gas wells) is only 40 acres
per well. ConocoPhillips argues that the Field Rules do not alter the lease’s
provision that the retained acreage is 640 acres per well.
No material fact necessary to address the legal questions is disputed. The
district court, on cross motions for summary judgment, held that Vaquillas’
proposed lease interpretation was correct. At the same time, the district court ruled
that ConocoPhillips’ lease interpretation was incorrect.
ISSUE PRESENTED
The issue in this case is “what is the proper interpretation of the leases’
retained acreage clause?” More specifically, the question is whether the leases’
retained acreage clause permits ConocoPhillips to retain only 40 acres per each
producing or shut-in gas well it has drilled on the two leases or whether
ConocoPhillips is allowed to retain 640 acres for each of those same gas wells.
viii
STATEMENT OF FACTS
Vaquillas alleged that ConocoPhillips breached the leases by failing to
release additional acreage under the retained acreage clause. The basic, undisputed
facts on which the district court ruled are summarized as follows:
A. The Two Leases Contain Retained Acreage Clauses.
This case involves two oil, gas, and mineral leases on which Vaquillas is the
lessor and ConocoPhillips is the lessee. The first lease includes 26,622.79 acres
(the “26,000-acre lease”) and the second lease covers 6,740 acres (the “6,700-acre
lease”). Defendant ConocoPhillips’ Motion for Summary Judgment (“D’s MSJ”),
Tab 2, Exhibits A & B. As lessee under these two leases, ConocoPhillips drilled
208 gas wells prior to the time it ended its continuous program. Id. Exhibits C &
D; Plaintiff Vaquillas’ Cross-Motion for Partial Summary Judgment and Response
to Defendant’s Motion for Summary Judgment (“P’s MSJ”), Tab 3, at 4.
The two leases contain retained acreage clauses, both of which read
essentially identically: 1
On November 1, 1990, Lessee covenants and agrees to execute and
deliver to Lessor a written release of any and all portions of this lease
which have not been drilled to a density of at least 40 acres for each
producing oil well and 640 acres for each producing or shut-in gas
well, except that in case any rule adopted by the Railroad Commission
of Texas or other regulating authority for any field on this lease
1
This quotation is from the 26,000-acre lease. D’s MSJ, Tab 2, Exhibit A, ¶ 18 The only
difference between this language in the two leases is that the second lease, the 6,700-acre Lease,
starts with: “At the end of the primary term hereof, Lessee covenants and agrees . . . .” D’s
MSJ, Tab 2, Exhibit B, ¶ 18.
1
provides for a spacing or proration establishing different units of
acreage per well, then such established different units shall be held
under this lease by such production, in lieu of the 40 and 640-acre
units above mentioned.
There is no dispute that ConocoPhillips conducted a continuous drilling
program and that the 90 days following the end of that program occurred no later
than June 30, 2012.2 Plaintiff’s Original Petition, Tab 4, ¶ 11; D’s MSJ, Tab 2, at
3. The expiration of the 90 days triggered the retained acreage clause.
ConocoPhillips released acreage in accordance with its interpretation of the
retained acreage provision. ConocoPhillips retained 23,671.63 acres, having
released 9,691.16 acres. P’s MSJ, Tab 3, at 6. Vaquillas asserts that
ConocoPhillips should have released all but 8,320 acres, claiming that
ConocoPhillips has retained 15,351.63 acres that also should be released. Id. The
parties’ differing interpretation of the retained acreage clause lies at the heart of the
parties’ contradictory positions in this case.
2
The retained acreage clause provides a time for releasing acreage: “provided, however, that if at
such date lessee is engaged in drilling or reworking operations the date for the execution and
delivery of such release shall be postponed and the entire lease shall remain in force so long as
operations on said well or wells are prosecuted with reasonable diligence, and if, after the
completion or abandonment of any such well Lessee commences the drilling of an additional
well within Ninety (90) days from the completion or abandonment of the preceding well, or
continuously conducts drilling operations in good faith and with reasonable diligence on said
lease without any cessation for longer than Ninety (90) days, said lease shall remain in full force
and effect during such drilling operations and until the end of Ninety (90) days after the
completion or abandonment of the final well, at which time Lessee shall execute and deliver to
Lessor said written release, releasing all portions of the lease not then so developed.” D’s MSJ,
Tab 2, Exhibit A, ¶ 18.
2
B. The Railroad Commission Adopted Field Rules.
The explanation for the differing interpretations of the retained acreage
clause arises out of the Railroad Commission’s adoption of Field Rules for this
field. Those Field Rules provide:
RULE 2: No well shall hereafter be drilled nearer than FOUR
HUNDRED SIXTY SEVEN (467) feet to any property line, lease line
or subdivision line and no well shall be drilled nearer than ONE
THOUSAND TWO HUNDRED (1,200) feet to any applied for,
permitted or completed well in the same reservoir on the same lease,
pooled unit or unitized tract. Provided, however, there is no minimum
between-well spacing requirement between a well being permitted at
least 660 feet from the nearest property line, lease line or subdivision
line, and the other wells permitted, drilled or completed on the same
lease, pooled unit or unitized tract. A well being permitted at a
distance less than SIX HUNDRED SIXTY (660) feet from the nearest
property line, lease line or subdivision line must be a minimum of
ONE THOUSAND TWO HUNDRED (1,200) feet from any applied
for, permitted or completed well in the same reservoir on the same
lease, pooled unit or unitized tract, or an exception to Rule 37 must be
obtained.
The aforementioned distances in the above rule are minimum
distances to allow an operator flexibility in locating a well, and the
above spacing rule and the other rules to follow are for the purpose of
permitting only one well to each drilling and proration unit. Provided
however, that the Commission will grant exceptions to permit drilling
within shorter distances and drilling more wells than herein prescribed
whenever the Commission shall have determined that such exceptions
are necessary either to prevent waste or to prevent the confiscation of
property. When exception to these rules is desired, application
therefore shall be filed and will be acted upon in accordance with the
provisions of Commission Statewide Rule 37 and 38, which
applicable provisions of said rule are incorporated herein by reference.
Provided however, that persons who are presumed to be affected by a
request for an exception to the between-well spacing requirement
3
shall be limited to the operators and owners/lessees of tracts, lease or
units within one mile or less of the proposed well.
Final Order Amending Field Rules For The Vaquillas Ranch (Lobo Cons.) Field
Webb County Texas (amended November 2, 2010), D’s MSJ, Tab 2, at Tab 2.
These Field Rules are the source of the parties’ disagreement. Vaquillas
contends the Field Rules triggered the exception to the parties’ basic agreement,
which would otherwise allow ConocoPhillips to retain 640 acres for gas wells.
Plaintiff’s Original Petition, Tab 4, ¶¶ 13-14. Vaquillas contends the Field Rules
“established different units of acreage per well,”—specifically, only 40-acre units
for gas wells. See Id. ¶¶ 14, 17, 18, 19.
C. This Action.
Vaquillas filed this action in March, 2014. ConocoPhillips moved for
summary judgment on the entire case and Vaquillas cross-moved for partial
summary judgment on liability. On November 25, 2014, the district court initially
granted Vaquillas’ motion for partial summary judgment and denied
ConocoPhillips’ motion for summary judgment on the entire case. Subsequently,
however, the district court amended its order to grant the parties permission to file
an interlocutory appeal. That Amended Order, attached as Tab 1, was signed on
January 27, 2015.
4
ARGUMENT AND AUTHORITIES
A party may take an interlocutory appeal under section 51.014(d), if the
order to be appealed involves a controlling question of law as to which there is a
substantial ground for difference of opinion, and an immediate appeal may
materially advance the ultimate termination of the litigation. TEX. CIV. PRAC. &
REM. CODE § 51.014(d)(1) & (2). The district court properly certified the order
that is the subject of this Petition for interlocutory appeal under section 51.014(d).
Case law construing section 51.014(d) is limited. The requirements for
certifying an interlocutory appeal under section 51.014(d), however, are
substantially identical to those under the federal rule permitting interlocutory
appeals – 28 U.S.C. § 1292(b) – thus, case law interpreting section 1292(b) is
instructive.
A. The proper interpretation of the leases is a “controlling question of
law.”
First, the parties agree that the interpretation of the oil, gas, and mineral
leases at issue involves a pure question of law. Neither party has pleaded or
argued that the provisions are ambiguous.
Second, there can be no doubt that the construction of the retained acreage
provision is a controlling question of law in this case within the meaning of section
51.014(d)(1). It is the question on which the case turns. If ConocoPhillips is right,
judgment should be rendered against Vaquillas. If Vaquillas’ interpretation is
5
correct, ConocoPhillips will have to release many thousands of additional mineral
acres.
Texas courts have not attempted to give the word “controlling” a precise
definition in section 51.014(d). However, there is no reason to conclude the word
has anything other than its usual meaning. ‘“Controlling’ means serious to the
conduct of the litigation, either practically or legally.” Johnson v. Burken, 930
F.2d 1202, 1206 (7th Cir. 1991) (internal citations omitted). “There is no doubt
that a question is ‘controlling’ if its incorrect disposition would require reversal of
a final judgment, either for further proceedings or for a dismissal that might have
been ordered without the ensuing district-court proceedings.” 16 Alan Wright,
Arthur R. Miller & Edward H. Cooper, Federal Practice & Procedure (“Wright &
Miller”) § 3930 at 496 (3d ed. 2012). In this case, if the district court were to enter
judgment based on an erroneous interpretation of the retained acreage provision,
reversal would be required. Accordingly, determination of the proper legal
interpretation of the retained acreage provision is a “controlling question of law.”
Further, a question of law is “controlling” if its resolution could determine
the outcome or future course of the litigation. See Johnson, 930 F.2d at 1206.
Questions also are controlling if “interlocutory reversal might save time for the
district court, and time and expense for the litigants.” Id.; see also Wright &
Miller § 3930 at 499. Here, an interlocutory appeal of the decisive issue before
6
this Court would allow either a final decision of this case or allow the case to go
forward in a manner that will not generate a new set of title issues between the
parties.
The district court properly concluded the issues determined in the Amended
Order present a controlling question of law.
B. There is a substantial ground for a difference of opinion.
There is little direct legal guidance concerning the proper interpretation of
the retained acreage clause in the context of its language and the particular
Railroad Commission Field Rules. Both parties cite to the Texas Supreme Court’s
opinion in Jones v. Killingsworth, 403 S.W.2d 325 (Tex. 1965), and both sides
claim the case supports their side of the argument. That case drew differences
between the words “permitted” and “prescribed” as used in the Railroad
Commission Field Rules and in the leases at issue.
Here, the issue is whether the Railroad Commission’s Field Rules
“established” units for gas wells of a different size than 640 acres. ConocoPhillips
advocated that the Field Rules merely permitted the creation of gas units of fewer
than 640 acres. Hence, it argued the Field Rules allow operators to drill wells on a
minimum of 40 acres, but the rules did not “establish” 40 acre units. Vaquillas, on
the other hand, emphasizes a different portion of the retained acreage clause. It
argued the clause allowed for the Field Rules to “establish” units of a different size
7
through the spacing provisions, and that the particular Field Rules established 40-
acre units through its spacing provisions.
The answer to the issue presented requires a careful analysis of the lease
language vis-à-vis the particular words used in the Field Rules. Accordingly, there
is substantial ground for a difference of opinion, as determined by the district
court.
C. An immediate appeal from the Amended Order may materially advance
the ultimate termination of the litigation.
Determination of whether a legal issue is “controlling” goes hand-in-hand
with the question whether an interlocutory appeal of an order deciding that issue
“may advance the ultimate termination of the litigation.” 19 James Wm. Moore,
Moore’s Federal Practice & Procedure §203.31[3] at 203-120 (3d ed. 2014).
An immediate appeal of the district court’s Amended order will materially
advance the ultimate termination of this litigation. The question how to interpret
the retained acreage provision is the liability issue in this case. However, unlike
many cases where damages can be easily tried, that is not true in this case. We can
start with the relief Vaquillas is seeking. Vaquillas is requesting that
ConocoPhillips release over 15,000 additional mineral acres to Vaquillas, which
Vaquillas would then be free to develop or to lease to a third party oil and gas
producer. This will create chaos if a judgment in Vaquillas favor is reversed on
appeal. Further, even an assessment of damages will prove to be complicated. At
8
issue are tracts of land scattered throughout a field in which damages, if any,
would have to be assessed in accordance with, among other things, those tracts’
size and location. It is a far better approach to finally determine the liability issue
before embarking on implementing remedies that are complicated and difficult to
unwind.
PRAYER
ConocoPhillips Company requests the Court to grant permission to take an
interlocutory appeal of the district court’s Amended Order granting summary
judgment for Respondent and denying the summary judgment filed by Petitioner
ConocoPhillips, and for such other relief as they may show themselves entitled.
9
Respectfully submitted,
LOCKE LORD LLP
/s/ Michael V. Powell
Michael V. Powell
State Bar No. 16204400
Email: mpowell@lockelord.com
Cynthia K. Timms
State Bar No. 11161450
Email: ctimms@lockelord.com
Elizabeth L. Tiblets
State Bar No. 24066194
Email: etiblets@lockelord.com
Locke Lord LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Tel: 214-740-8520
Fax: 214-740-8800
Adolfo Campero
State Bar No. 00793454
Email: acampero@camperolaw.com
Campero & Associates, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
Tel: 956-796-0330
Fax: 956-796-0399
ATTORNEYS FOR PETITIONER
CONOCOPHILLIPS COMPANY
10
CERTIFICATE OF CONFERENCE
I hereby certify that on February 8, 2015, counsel for ConocoPhillips
conferred with Mr. Michael Jung, counsel for plaintiff / respondent Vaquillas in
this case, regarding this Petition. Mr. Jung stated that Vaquillas does not oppose
this Petition for Permission to Appeal and has agreed to the relief requested in this
Petition.
/s/ Michael V. Powell
Michael V. Powell
CERTIFICATE OF COMPLIANCE
Pursuant to Texas Rule of Appellate Procedure 9.4(i)(3), as amended
effective December 1, 2012, the undersigned certifies that this Petition complies
with the length limitations of Rule 28.3(g) (which the undersigned understands
now to be stated in Rule 9.4(i)) and the typeface requirements of Rule 9.4(e).
1. Exclusive of the contents excluded by Rule 9.4(i)(1), this Brief
contains 2,221 words as counted by the Word Count function (including textboxes,
footnotes, and endnotes) of Microsoft Office Word 2010.
2. This Brief has been prepared in proportionally spaced typeface using:
Software Name and Version: Microsoft Office Word 2010
Typeface Name: Times New Roman
Font Size: 14 point
/s/ Michael V. Powell
Michael V. Powell
11
CERTIFICATE OF SERVICE
I hereby certify that on the 10th day of February 2015, a true and correct
copy of Agreed Petition for Permission to Appeal, with Exhibits, was served by
File&ServeXpress and/or pdf or Certified Mail, Return Receipt Requested on
Respondent through its counsel of record listed below:
Gregg Owens Raul Leal
Email: gregg.owens@haysowens.com State Bar No. 24032657
Robert G. Hargrove Email: rleal@rl-lawfirm.com
Email: rob.hargrove@haysowens.com Raul Leal Incorporated
Hays & Owens L.L.P. 5810 San Bernardo, Suite 390
807 Brazos Street, Suite 500 Laredo, Texas 78041
Austin, Texas 78701 Tel: 956-727-0039
Tel: 512.472.3993 Fax: 956-727-0369
Fax: 512.472.3883
A. Michael Jung Armando X. Lopez
State Bar No. 11054600 State Bar No. 12562400
Email: michael.jung@strasburger.com Email: mandox@rio.bravo.net
Strasburger & Price, LLP Law Offices of Armando X. Lopez
901 Main Street, Suite 4400 1510 Calle Del Norte, Suite 16
Dallas, Texas 75202-3794 Laredo, Texas 78041
Tel: 214-651-4724 Tel: 956-726-0722
Fax: 214-651-4330 (main) Fax: 956-726-6049
Fax: 214-659-4022 (direct)
Counsel for Vaquillas Unproven
Minerals, Ltd.
/s/ Michael V. Powell
Michael V. Powell
12
No. _______________
In the Court of Appeals
for the Fourth Judicial District of Texas
San Antonio, Texas
CONOCOPHILLIPS COMPANY,
Petitioner,
V.
VAQUILLAS UNPROVEN MINERALS, LTD.,
Respondent.
From Cause No. 2014 CVQ000 438 D4
406th Judicial District Court, Webb County, Texas
Honorable Oscar J. Hale, Jr., Presiding Judge
Appendix
Amended Order On Cross-Motions For Summary Judgment ..........................TAB 1
Defendant's Motion For Summary Judgment ...................................................TAB 2
Plaintiff's Cross-Motion For Partial Summary Judgment And
Response To Defendant’s Motion For Summary Judgment .......................TAB 3
Plaintiff’s Original Petition ...............................................................................TAB 4
13
Tab 1
01-28-15;13:59 ;From:406th Distr i ct Court lo:8111 4 / 4UbbUU ,~OOOLJOUI ~ tt L I U
...
CAUSE NO. 2014CVQ000438 D4
VAQUILLAS UNPROVEN MINERALS, § IN THE DISTRICT COURT
LTD, §
§
Plaintiff, §
§
v. § WEBB COUNTY, TEXAS
1
"-.·
...
·'
CONOCOPBILLI:PS COMPANYt
§
§
,.~ §
~
,.
Defendant. § 406'l'u JUDICIAL DISTRICT
AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT
On October 30, 2014, Defendant's Motion for Summary Judgment and Plaintiffs Cross-
Motion for Partial Summary Judgment were heard. The Court, having reviewed the motion,
·'
briefs, responses, competent swnruary judgment evidence, and argument of counsel, rules on
these motions as follows,
IT IS ORDERED, ADJUDGED, AND DECREED that Defendant's Motion for
Summary Judgment is DENIED.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Plaintiffs Cross-
Motion for Partial Summary Judgment is GRANTED. The Court DECLARES that Defendant
has breached the 26,622.79-acre Lease and the 6,740-acre Lease by failing to release all acreage
in excess of 40 acres for each producing and shut-in natural gas well capable of producing in
paying quantities.
This Order of the Court decides the central question in this case, which is the number of
j
:....~
·.;
acres under two oil and gas leases that Defendant ConocoPhillips Company retains under the
"retained acreage" clauses of the leases at the conclusion of ConocoPhillips' continuous drilling
operations. The Court finds that the question decided by this order is a controlling question of
;j AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY .JUDGMENT PAGEl
---··- ~·-~-------- ····--···· -·--·-···· ···-··"·-·------~------~·----
01-28-15; 13:59 ;From:406th Dist r ict Court To:912 14740BBOO ;9565235074 # 31 6
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law as to which there is a substantial ground for difference of opinion. The Court also finds that
immediate appeal of the order will materially advance the ultimate termination of this litigation.
This Court's Order, and the underlying controlling question of law, involve the parties'
:i competing legal interpretations of the language of the "retained ac.reage'' clauses and certain
Field Rules adopted by the Railroad Commission of Texas. Although the Court has ruled in
.,;,• favor of the Plaintiff lessor, Vaquillas Unproven Minerals, Ltd., the Court concludes there are
'"·
I substantial grounds for difference of opinion regarding whether the leases allow ConocoPhillips
~
I
to retain 40 acres per well, as Plaintiff contends, or 640 acres, as ConocoPhillips contends.
An immediate appeal from this Court's Order will materially advance the final
conclusion of litigation. Plaintiff seeks judgment ordering ConocoPhillips to cx.ecute releases of
over 15,000 acres described in the leases, as well as possible direct and consequential damages
flowing from ConocoPhillips' alleged breach of the utetained acreage" clauses of the leases. If
ConocoPhillips is forced to release the acreage but later wins an appeal determining that
ConocoPhillips' original interpretation is correct, significant problems could develop. On the
other hand, the lessor, Vaquillas Unproven Minerals, Ltd. is interested in having the release of
acreage as soon as possible. Furthermore, the Court and the parties anticjpate that a
determination of Plaintiff's damages, if any, will be costly and time~consuming.
..
'...·
ConocoPhillips desires to take an interlocutory appeal. The Court rules that such appeal
shall be defined by the lease interpretation question addressed in the parties' cross-motions for
:.1 summary judgment. More specifically, the question is whether the leases' retained acreage
clause allows ConocoPhillips Company to retain only 40 acres per each producing or shut-in gas
well it has drilled on the two leases, or whether ConocoPhillips is allowed to retain 640 acres
(plus 10% tolerance) for each wells.
" AMENDED ORDER ON CROSS...MOTIONS FOR SUMMARY .JUDGMENT PAGE2
1.!
01-28-15;13:59 ;From:406th District Court To:912 14740S800 ;9565235074 # 4/ I]
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~~ IT IS HEREBY ORDERED that, pursuant to Texas Civil Practice & Remedies Code §
Sl.014(d) (West. Supp. 2014) an interlocutory appeal is ALLOWED from this Order.
;
.~
·' IT IS FURTllER ORDERED that trial of this action is stayed pending the interlocutory
:I appeal. The Court's Pre-Trial Guideline Order and Scheduling Order arc hereby VACATED.
:j The parties may proceed with discovery and pretrial proceedings by agreement or with leave of
Court.
.;·-·
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q SIGNED1his_2Zf-dayof7-===-t ,2015.
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Hon~Oscar J. Hale, Jr.
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Judge Presiding
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AMENDED ORDER ON CROSS-MOTXONS FOR SUMMARY JtlDGMENT PAGE3
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01- 28-1 5; 13 :59 ;Fr om :406th Dist ric t Cour t lo:81214 /4UddUU ; ~000L j ou 1~ w ~'
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"...1 .:• ..: • • • • • • •• ~· · ---~ ~·-- .. - · - · ·· - -- ..... ........ ----> _.. ._
APPROVED AS TO FORM:
~~·~~
Micfu\CIViPowell
State Bar No. 16204400
Email: mpowell@lockelord.com
Elizabeth L. Tiblets
.
~
State Bar No. 24066194
..",
~
Email: etib1ets@lockelord.com
·!
LOCKE LORD LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201~6776
Tel: 214-740-8520
Fax: 214-740-8800
Adolfo Cam.pero
State Bar No. 00793454
Email: acampero@camperolaw.com
CAMPERO & ASSOCIATES, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
Tel: 956-796-0330
Fax:956~796-0399
ATTORNEYS FOR DEFENDANT
CONOCOPHILLIPS COMPANY
:j
AMENDED ORDER ON CROSS-MOTlONS FOR SUMMARY JUDGMENT PAGE4
- - -- - - - - - - - -······-- ..·- - ··- ____________________
.,
To:912147408800 ;9565235074 tt bl 0
01 - 28- 15; 13 :59 ;From:406th District Court
.. .. ··· --
~·- ......_ - - --
APPROVED AS TO FORM:
/s/ P. Michael Jung
P. Michael Jung
State Bar No. 11054600
Email: micllaeLjung@strasburger.com
STRASBURGER. & PRICE, LLP
901 Main Street, Suite 4400
Dallas, Texas 75202-3794
..• Tel: 214-651-4724
)! Fax: 214-651-4330 (main)
·.•
Fax~ 214-659-4022 (direct)
J
:l Gregg Owens
..· State Bar No. 15383500
Email: gregg.owens@haysowens.com
Robert 0 . Hargrove ·
State Bar No. 09303300
Email: rob.hargrove@haysowens.com
H AYS & OWENS L.L.P.
807 BJ:"azos Street, Suite 500
Austin, Texas 78701
Tel: 512-472-3993
Fax: 512~472<3883
Annando X. Lopez
State Bar No. 12562400
Email: mandox@rio.bravo.net
LAW OFFICES OF ARMANDO X. LOPEZ
1510 Calle Del Norte, Suite 16
Lw:edo, Texas 78041
Tel: 956-726-0722
Fax: 956-726-6049
•·.
...,.
·i
Raul Leal
!°! State Bar No. 24032657
.~
Email: rleal@rl-lawfirm.com
RAUL LEAL lNCOR.PORATEP
5810 San Bernardo, Suite 390
Laredo, Texas 78041
Tel: 956~727-0039
,, Fax; 956-727r0369
ATTORNEYS FOR VAQUILLAS
UNPROVEN MINERALS, LTD.
AMENDED ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT PAGES
Tab 2
Filed
7/30/2014 12:03:15 PM
Esther Degollado
District Clerk
Webb District
2014CVQ000438 D4
Although all of the language in the Leases is important, 1 Vaquillas bases all of its claims
in this lawsuit on the following language from Paragraph 18 of both Leases. 2 (ConocoPhillips
will indent and number the sentences and separate phrases quoted from Paragraph 18 in order to
facilitate later discussion of them.)3
Sentence (1): On November 1, 1990, Lessee covenants and agrees to
execute and deliver to Lessor a written release of any and all portions of this lease
which have not been drilled to a density of at least 40 acres for each producing oil
well and 640 acres for each producing or shut-in gas well,
Sentence (2): except that in case any rule adopted by the Railroad
Commission of Texas or other regulating authority for any field on this lease
provides for a spacing or proration establishing different units of acreage per well,
then such established different acreages shall be held under this lease by such
production, in lieu of the 40 and 640-acre units above mentioned;
Sentence (3): provided, however, that if at such date lessee is engaged in
drilling or reworking operations the date for the date for execution and delivery of
such release shall be postponed and the entire lease shall remain in force so long
1
When interpreting an oil and gas lease, the Court must "examine the entire document
and consider each part with every other part so that the effect and meaning of one part on any
other part may be determined." Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118, 121
(Tex. 1996).
2
Each of the alleged causes of action in Plaintiffs Original Petition is based on Vaquillas'
erroneous interpretation of Paragraph 18. See Plaintiffs Original Petition '11'11 17-20. This
Motion for Summary Judgment explains why Vaquillas' interpretation is wrong as a matter of
law. Consequently, this motion seeks summary judgment on the entire case.
3
This quotation is from the "26,622. 79 Acre Lease," as described in Paragraph 8 of
Vaquillas' Petition. The only difference between this language in the two Leases is that the
second lease, the "6,740 Acre Lease" described by Vaquillas starts with: "At the end of the
primary term, Lessee covenants and agrees .... "
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE2
as operations on said well or wells are prosecuted with reasonable diligence, and
if, after the completion or abandonment of any such well Lessee commences the
drilling of an additional well within Ninety (90) days from the completion or the
abandonment of the preceding well, or continuously conducts drilling operations
in good faith and with reasonable diligence on said lease without any cessation for
longer than Ninety (90) days, said lease shall remain in full force and effect
during such drilling operations and until the end of Ninety (90) days after the
completion or abandonment of the final well, at which time Lessee shall execute
and deliver to Lessor said written release, releasing all portions of the lease not
then so developed.
Sentence (4): Each retained unit shall contain at least one (1) well
producing or capable of producing oil or gas in paying quantities, and the acreage
within a unit shall be contiguous.
See Petition 'if'il 11, 13; Huebner Declaration, Exhs. A & B (emphasis added).
The wells on the Leases produce gas, so the relevant "development" obligation and the
retained acreage size to which the parties agreed in Sentence (1 ), quoted above, is 640 acres.
There is no dispute between the parties that ConocoPhillips maintained the 26,622.79 Acre Lease
in full force and effect for many years after November 1, 1990, and the 6,740 Acre Lease in full
force and effect for many years after its primary term by continuous drilling. There is no dispute
that ConocoPhillips' continuous drilling operations ended at or about the time Vaquillas states in
Paragraph 11 of its Original Petition. Due to the end of continuous drilling operations, COPC
filed the Releases of Acreage that it believed were due to Vaquillas as stated in the final phrase
of Sentence (3) and in Sentence (4), copies of which are attached as Exhibits C and D to the
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE3
Huebner Declaration, filed herewith. ConocoPhillips' Releases of Acreage retained 640-acre
units around producing gas wells, as agreed in Sentence (I).
The sole dispute between the parties to this case turns the proper interpretation of
Sentence (2), quoted above. There is no disagreement that the Railroad Commission of Texas
(the "Commission") has adopted Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, Webb
County, Texas. Those Field Rules apply to the wells at issue in this case. Those Field Rules,
originally effective February 24, 1998, were amended into their current form effective November
2, 2010. The Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, as amended, are attached
as Tab 2 to this Motion. The Court may take judicial notice of these Field Rules adopted by the
Commission, and ConocoPhillips requests it to do so. TEX. R. Evm. 201.
Vaquillas contends the Field Rules triggered the exception in Sentence (2) to the parties'
basic agreement of Sentence (1 ), which was that ConocoPhillips would retain 640 acres for gas
wells. (Plaintiffs Original Petition iii! 13-14). Vaquillas contends that the Field Rules
"established different units of acreage per well," specifically only 40-acre units for gas wells, and
that consequently, COPC must forfeit, because of Paragraph 18, a great deal more acreage from
the two Leases than it already has released to Vaquillas. (See Plaintiffs Original Petition iii! 14,
17, 18, 19).
For the reasons explained below, Vaquillas' contentions are wrong Under the
straightforward, plain meaning of Paragraph 18, the Commission's Field Rules do not "establish"
different units of acreage per well. Those Rules state only that no well may be drilled on less
than 40 acres, which is exactly the same minimum density that applied under the Commission's
Statewide Rules in effect for these Leases before the Commission adopted Field Rules. The
Field Rules say nothing about any maximum acreage that may be assigned to gas wells.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE4
Consequently, nothing in the Field Rules is inconsistent with, or overrides, the parties' basic
agreement that gas wells retain 640 acres. Nothing about those Field Rules "establishes" any
unit different from 640 acres. 4
II. PERTINENT PROVISIONS OF THE TWO LEASES
As Texas oil and gas leases, the two Leases actually are conveyances by which the Lessor
granted a fee simple determinable in the minerals in and under the land described in the Leases
to the Lessee, who is more properly referred to as a "Grantee." Natural Gas Pipeline Co. v.
Pool, 124 S.W.3d 188, 192 (Tex. 2003); accord Anadarko Petroleum Corp. v. Thompson, 94
S.W.3d 550, 554 (Tex. 2002). By the first Lease, Vaquillas and its predecessors granted to
ConocoPhillips' predecessor the mineral estate in and under 26,622. 79 acres of Webb County
land for "five years (called "primary term") and as long thereafter as oil, gas or other mineral is
produced from said land or land with which said land is pooled hereunder." By the second
Lease, Vaquillas and its predecessors did the same for an additional 6,740 acres of Webb County
land, except the term of that Lease was for "three years ... and as long thereafter as oil, gas or
other mineral is produced from said land or land with which said land is pooled .... "
"An oil, gas and mineral lease is indivisible by its nature. Production from any part of
the lease keeps the lease in effect during the primary term and for long as oil, gas and other
minerals are being produced as to all lands described in the instrument." Shown v. Getty Oil Co.,
645 S.W.2d 555, 560 (Tex. App.-San Antonio 1982, writ refd). Accord, Matthews v. Sun Oil
4
There are field rules that do "establish" maximum acreages. As one example, Tab 3 to
this Motion is a copy of the Final Order Adopting Temporary Rules and Regulations for the Big
Reef (Edwards) Field, Webb County. Rule 3 of that Field Rule establishes standard drilling and
proration units to be 160 acres. Those rules provide that "no proration unit shall consist of more
than ONE HUNDRED SIXTY (160) acres, plus a 10% tolerance. ConocoPhillips' point is that
the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field do not establish any such
"maximum" units.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGES
Co., 425 S.W.2d 330, 333 (Tex. 1968); Humphrey v. Seale, 716 S.W.2d 620, 622 (Tex. App.-
Corpus Christi 1986, no writ).
Accordingly, ConocoPhillips' extensive production from the two Leases entitles
ConocoPhillips to maintain the Leases in full force and effect as to all of the land covered by the
Leases until one of two events came to pass, both of which are "limitations on the grant." The
first limitation on the grant is found in the habendum clauses of the two Leases and is cessation
of production in paying quantities, an event that has not occurred. Under Vaquillas' arguments,
the second limitation on the grant is the requirement to deliver releases of undeveloped acreage
that is contained in Paragraph 18. Consequently, the question posed by Vaquillas' Petition is
whether by virtue of a second limitation on the grant contained in the two Leases,
ConocoPhillips must release thousands of additional acres it has earned by extensive drilling and
would continue to hold under the habendum clauses because Sentence (2) of Paragraph 18 means
it may retain only 40, rather than the agreed 640, acres around producing wells?
Note that both Leases expressly authorized ConocoPhillips to assign acreage up to 640-
acres (plus a tolerance of 10 percent) to gas wells. Paragraph 4 of both Leases grants optional
pooling authority to the Lessee and says:
... units pooled for gas hereunder shall not substantially exceed in area
640 acres each plus a tolerance often percent (10%) thereof, provided that should
governmental authority having jurisdiction prescribe or permit the creation of
units larger than those specified, for the drilling or operation of a well at a regular
location or for obtaining maximum allowable from any well to be drilled, drilling
or already drilled, units thereafter may conform substantially in size with those
prescribed or permitted by governmental regulations.
Paragraph 16 of both Leases created an additional limitation on the Lessee's pooling authority by
restricting the option to pool to leases covering land belonging to Vaquillas or in which
Vaquillas owned an interest, but that restriction is not pertinent here.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE6
Accordingly, the normal and completely authorized block of acreage under these Leases
for gas wells is 640 acres. As noted above, that acreage for gas wells was expressly authorized
by the pooling clause. Under Sentence (I) of Paragraph 18, that was the parties' agreement for
"retained acreage" around gas wells at the time Paragraph 18 came into play as an active
limitation on the grant of a fee simple determinable to ConocoPhillips "as long thereafter as oil,
gas or other mineral is produced from said land or land with which said land is pooled .... "
(Leases i!2).
III. THE FIELD RULES
The Field Rules do not, on their face, say anything about a minimum density, or
minimum acreage around wells. (See Tab 2 to this Motion). The Field Rules state (with an
important exception) that wells must be at least 467 feet from property and lease boundaries
("lease line spacing") and at least 1,200 feet apart if they are drilled to the "same reservoir on the
same lease, pooled unit, or unitized tract" ("between well spacing"). The exception added by the
20 I 0 amendment to the Field Rules is that there is no between well spacing for wells drilled at
least 660 feet from the nearest property or lease boundary.
The minimum distances of 467 feet for lease line spacing and 1,200 feet for between well
spacing are the very same minimum distances set forth by Statewide Spacing Rule 37, which
governed wells on these Leases before the Commission adopted Field Rules. See 16 T.A.C. §
3.37(a)(l) (stating the Statewide Spacing Rule as follows: "No well for ... gas ... shall
hereafter be drilled nearer than 1,200 feet to any well completed in or drilling to the same
horizon on the same tract or farm, and no well shall be drilled nearer than 467 feet to any
property line, lease line, or subdivision line."). So, the Field Rules did not adopt any "different"
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE7
spacing rules from the Statewide Rules already in effect before the Commission promulgated
those Field Rules.
When, as here, a Field Rule of the Commission does not contain a well density
requirement, which is the minimum amount of acreage needed to drill a well, but does prescribe
minimum spacing requirements, one looks to the Commission's Statewide Rule 38, titled "Well
Densities," to ascertain minimum densities. 16 T.A.C. § 3.38. "Rule 38 establishes the minimum
number of acres to be assigned to each well in a given reservoir." 2 E. Smith & J. Weaver,
TEXAS LAW OF OIL AND GAS if 9.3(B) (2013). Statewide Rule 38(b)(2)(A) provides that for
spacing rules requiring a minimum 467 feet lease line spacing and 1,200 feet between-wells
spacing (which is the case for both the Statewide Spacing Rule 37 and the Field Rules for the
Vaquillas Ranch (Lobo Cons.) Field), the minimum number of acres that must be assigned to
each well is 40 acres. There is no maximum number of acres that may be assigned to each well.
Except for the requirement that there must be at least 40 acres, Rule 38 does not require acreages
of any particular size to be assigned to gas wells. 5
The only relevant prohibition in Rule 38 is that "[n]o well shall be drilled on substandard
acreage," which means in this case, no well shall be drilled on less than 40-acre units. 16 T.A.C.
§3.38(b)(l). None of the applicable Commission rules prohibits drilling on, or retention of, units
larger than 40 acres per well. As stated above, neither the Field Rules nor Statewide Rule 38
5
Proper interpretation of the Commission's Field Rules is, of course, a question oflaw for
the Court. See, e.g., State v. Bilbo, 392 S.W.2d 121, 122 (Tex. 1965) (interpretation of certificate
issued by the Commission presents a question oflaw).
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGES
establishes any maximum acreage per well. 6 Consequently, these parties' agreement that
ConocoPhillips may retain 640 acres of retained acreage around gas wells complies in every
respect with the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field and Statewide Rule 38.
As a matter of common sense, blocks of 640 acres plainly satisfy the requirement that there must
be at least 40 acres assigned.
As will be discussed in greater detail below, nothing in the Field Rules for the Vaquillas
Ranch (Lobo Cons.) Field requires, mandates, or-important here--"establishes" any units of less
than 640 acres.
Rule 3 of the Field Rules addresses proration. There is no factor in the proration formula
for the Vaquillas Ranch (Lobo Cons.) Field for the amount of acreage assigned to wells. Other
field rules do employ acreages as a factor for proration, but these Field Rules do not.
IV. ARGUMENT AND AUTHORITIES
A. The Word the Parties Chose for Paragraph 18: "Establish."
In order to decide this case, the Court must closely analyze the specific language these
parties chose to use for Paragraph 18 of these Leases. The operative words from the exception in
Sentence (2), quoted above, are: "in case any rule adopted by the [Commission] for any field on
this lease provides for a spacing or proration establishing different units of acreage per well. then
such established different units shall be held under this lease by such production, in lieu of the ..
. 640-acre units above mentioned."
The leading Texas Supreme Court opinion on this type of language-which
ConocoPhillips says compels a decision in its favor-is Jones v. Killingsworth, 403 S.W.2d 325
6
As noted above, the maximum acreage limitation for the wells at issue here is set forth in
Paragraph 4 of the Leases. Paragraph 4 prohibits ConocoPhillips from assigning more than 640
acres (plus a IO percent tolerance) to each gas well.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE9
(Tex. 1965). In Jones, the Court was called upon to construe a pooling provision in an oil and
gas lease that provided, in pertinent part, as follows:
Units pooled for oil hereunder shall not substantially exceed 40 acres each in area,
and units pooled for gas hereunder shall not substantially exceed 640 acres each
plus a tolerance of I 0% thereof, provided that should governmental authority
having jurisdiction prescribe or permit the creation of units larger than those
specified, units thereafter created may conform substantially in size with those
prescribed by governmental regulations.
Id. at 327 (emphasis added). The Railroad Commission promulgated Field Rules for the field
covered by the Jones lease, and those Field Rules required operators to assign a minimum of 80
acres to oil wells, but went further to permit them also to assign an additional 80 acres, for a total
of 160 acres to oil wells. Id.
The dispute before the Supreme Court was that the lessor, Jones, contended the language
of her lease authorized the lessee, Killingsworth, to unitize only 80 acres around oil wells.
Killingsworth, the lessee, contended the Field Rules permitted him to create units that conformed
substantially to the maximum acreage of 160 acres that was permitted for oil wells by the
applicable Field Rules. The Supreme Court decided the case for Jones by focusing on the
difference between two specific words-"prescribed" and "permitted"-that the parties had
employed in the Jones-to-Killingsworth lease. The Court held as follows:
The lessors did not consent to enlarge an oil proration unit to any size
permitted by governmental regulations. They gave their consent to enlarge a unit
of substantially 40 acres, but only to the extent of the size of units prescribed by
the regulatory authority. The fact that the Railroad Commission may permit a
much larger unit cannot be read into the lease contract when, as here, the authority
create larger units is expressly limited to units of the size prescribed by the
Railroad Commission. The Commission prescribed a unit of 80 acres. [The field
rules clearly say that there must be a proration unit of at least 80 acres, and there
may be larger units of not more than 160 acres]. * * *
The parties obviously knew when the lease contract was executed that a
permitted oil proration unit could conceivably be much larger in area than one
prescribed by governmental authority. To say that a lessee can pool lessors' land
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 10
with units of any size permitted by the Railroad Commission would defeat the
intention of the parties to restrict the size of the units to the size prescribed by
governmental authority.
Id. at 328 (emphasis in original).
The same analysis is applicable here. Before the exception in Sentence (2) of the
Vaquillas Leases, quoted above, comes into play, the Railroad Commission must "establish"
units for gas wells of a different size than 640 acres. The parties used the word "establish" twice,
saying first "establishing different units of acreage," and second, referring to "established
different units." The parties did not say the exception in Sentence (2) comes into play if the
Railroad Commission adopts a Field Rule that merely "permits" the creation of gas units of
fewer than 640 acres, and that is all the Field Rules for the Vaquillas Ranch (Lobo Cons.) Field
do. They permit operators to drill wells on a minimum of 40 acres, but they do not "establish"
40 acre units.
Unless words are specifically defined in oil and gas leases, Texas courts give those words
their "plain, ordinary, and generally accepted meaning." Heritage Resources, 939 S.W.2d at
121. The ordinary meaning of the word "establish" is "to settle, make, or fix firmly." BLACK'S
LEGAL DICTIONARY at 626 (9th ed. 2009). Similarly, an old Texas case says "established"
means "(m]ake steadfast, firm, or stable, to settle on a firm or permanent basis." Rowley v.
Braley, 286 S.W. 241, 245 (Tex. Civ. App.-Amarillo 1926, writ dism'd). WEBSTER'S THIRD
NEW INTERNATIONAL UNABRIDGED DICTIONARY (1993) says "establish" means either "to make
firm or stable," or to "settle or fix after consideration by enactment or agreement." Id. at 778.
Using those definitions, it is flatly incorrect for Vaquillas to argue that the Field Rules in
question "settle" or "fix firmly" that there must be only 40 acre units of acreage for gas wells.
Those Rules clearly do not. Those Rules provide nothing more than that gas wells must have a
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 11
minimum of 40 acres, and ConocoPhillips' retained acreage blocks of 640 acres clearly meet that
minimum limit.
ConocoPhillips was well within its authority under the Vaquillas Leases' pooling clauses
to assign 640 acres to gas wells, and nothing in the Field Rules "established" or in any way
compelled ConocoPhillips to reduce its units to any different size.
In order for the Court to give Sentence (2) the meaning for which Vaquillas contends, the
Court would have to rewrite that sentence in both Vaquillas Leases to say something like: "in
case any rule adopted by the Railroad Commission of Texas or other regulating authority for any
field on this lease provides for a spacing or proration [permitting] different units of acreage per
well, then such [permitted] different units shall be held under this lease by such production, in
lieu of the ... 640-acre units above mentioned." But this Court may not rewrite the Vaquillas
Leases in the guise of interpreting them. E.g., EOG Resources, Inc. v. Killam Oil Co., Ltd., 239
S.W.3d 293, 300 (Tex. App.-San Antonio 2007, pet. denied). And that is precisely the
interpretation the Supreme Court rejected in Jones. 7 "Prescribe" does not mean "permit," and
"establish" does not mean "permit."
B. The Presumption Against a "Limitation on the Grant."
For the reasons explained above, there is no room for doubt about the proper meaning of
Sentence (2). As explained above, "establish" does not mean "permit." Indeed, "establish"
means "to settle, make, or fix firmly," which is a far cry from "permit" or "allow." But even if
there were some possible doubt or ambiguity in Paragraph 18, the Court would be required to
interpret Paragraph 18 as ConocoPhillips contends because of the long-standing, very strong,
7
The Supreme Court decided Jones v. Killingsworth in 1965, several years before either
of the Vaquillas Leases was executed. With knowledge of the Court's interpretation in Jones,
there can be little doubt that if these parties intended for Sentence (2) to apply when the Railroad
Commission merely permitted smaller units, they would have said so.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 12
rule in Texas law that "the language used by the parties to an oil and gas lease will not be held to
impose a special limitation on the grant unless it is clear and precise and so unequivocal that it
can reasonably be given no other meaning." Rogers v. Ricane Enterprises, Inc., 773 S.W.2d 76,
79 (Tex. 1989). Accord, Anadarko Petroleum Corp. v. Thompson, 94 S.W.3d 550, 554 (Tex.
2002); Fox v. Thoreson, 398 S.W.2d 88, 92 (Tex. 1966); Knight v. Chicago Corp., 188 S.W.2d
564, 566 (Tex. 1945).
Vaquillas wants the Court to interpret Sentence (2) of Paragraph 18 as a limitation on the
lessors' grant to ConocoPhillips of a fee simple determinable in the mineral estate in and under
all land described in the Vaquillas Leases. Although ConocoPhillips disagrees, Vaquillas even
describes Paragraph 18 as an automatic, self-executing limitation on Vaquillas' grant to
ConocoPhillips. Paragraph 11 of Plaintiffs Original Petition alleges: "Under Paragraph 18 of
both oil and gas leases, un-earned acreage reverted to Vaquillas 90 days after Conoco ceased
drilling wells under the continuous drilling clause." Vaquillas even describes the additional
acreage it contends ConocoPhillips must release as the "Reverted Minerals." (Plaintiffs
Original Petition ii 14). Accordingly, Vaquillas wants the Court to interpret Sentence (2) to
result in ConocoPhillips' loss of an additional thousands of acres of leasehold estate, i.e.,
Vaquillas seeks a ruling from this Court that ConocoPhillips forfeited the thousands of acres
Vaquillas calls the "Reverted Minerals," which are those acres included within the 640-acre
"Retained Units" that ConocoPhillips retained when it executed releases to Vaquillas under
Paragraph 18, but would not be within the only 40-acre blocks Vaquillas claims Sentence (2)
allowed ConocoPhillips to retain.
When the word "establish" in Sentence (2) is given its proper, ordinary meaning,
Vaquillas' interpretation of Sentence (2) is not a permissible--or even reasonable--
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 13
interpretation. That is especially true in view of the Texas Supreme Court's strong presumption
against construing lease provisions as limitations on the grant, which is what Vaquillas contends
Sentence (2) of Paragraph 18 is. Vaquillas' interpretation should be rejected as a matter of law.
V. THE SUMMARY JUDGMENT RECORD
The summary judgment record that ConocoPhillips places before the Court consists of:
I. The Declaration of Dana C. Huebner, attached as Tab 1, which authenticates
copies of the two Leases and the Partial Releases of Oil and Gas Leases that ConocoPhillips has
already filed of record releasing acreage from the two Leases, but retaining 640-acre blocks of
acreage around producing gas wells.
2. The Field Rules for the Vaquillas Ranch (Lobo Cons.) Field, Webb County,
Texas, as amended, attached at Tab 2.
3. ConocoPhillips relies on Plaintiffs Original Petition to show what Plaintiff
contends in this case and for certain admissions therein that demonstrate that certain facts are
undisputed. ConocoPhillips has generally denied the allegations in Plaintiffs Original Petition.
If this Motion for Summary Judgment is denied, ConocoPhillips reserves all rights to contest the
allegations in the Petition.
VI. PRAYER FOR RELIEF
Defendant ConocoPhillips Company prays that this Motion for Summary Judgment will
be granted and that final judgment be entered that Plaintiff Vaquillas Unproven Minerals, Ltd.,
take nothing by this action. ConocoPhillips also prays for recovery of its costs and for all other
relief to which it is entitled.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 14
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing Defendant's Motion for
Summary Judgment was served via email on the following counsel of record for Plaintiff as
stated on this 30th day of July 2014:
Gregg Owens Raul Leal
Email: gregg.owens@haysowens.com Raul Leal Incorporated
Robert G. Hargrove 5810 San Bernardo, Suite 390
Email: rob.hargrove@haysowens.com Laredo, Texas 78041
Hays & Owens L.L.P. Tel: 956.727.0039
807 Brazos Street, Suite 500 Fax: 956.727.0369
Austin, Texas 78701 Email: rleal@rl-lawfirm.com
Tel: 512.472.3993
Fax: 512.4 72.3 883
Michael Jung Armando X. Lopez
Strasburger & Price, LLP 1510 Calle Del Norte, Suite 16
901 Main Street, Suite 4400 Laredo, Texas 78041
Dallas, Texas 75202-3794 Tel: (956) 726-0722
Tel: 214.651.4724 Fax: (956) 726-6049
Fax: 214.651.4330 (main) mandox@rio.bravo.net
Fax: 214.659.4022 (direct)
Email: michael.jung@strasburger.com
Counsel for Vaquillas Unproven Minerals, Ltd.
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 16
Dated: July 30, 2014 Respectfully submitted,
7n~~ce
Michaelpowell
State Bar No. 16204400
Email: mpowell@lockelord.com
Elizabeth L. Tiblets
State Bar No. 24066194
Email: etiblets@lockelord.com
LOCKE LORD LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Tel: 214-740-8520
Fax: 214-740-8800
Adolfo Campero
State Bar No. 00793454
CAMPERO & ASSOCIATES, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
Tel: 956-796-0330
Fax: 956-796-0399
Email: acampero@camperolaw.com
ATTORNEYS FOR DEFENDANT
CONOCOPHILLIPS COMPANY
DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PAGE 15
TAB 1
DECLARATION OF DANA C. HUEBNER
I. My name is Dana C. Huebner, and my date of birth is It- ffil - [t\ ~~
My business address is at ConocoPhillips Company, 600 North Dairy Ashford Road, Houston,
Texas 77079. I am employed as a Landman by ConocoPhillips Company, and I currently
provide land support to ConocoPhillips' South Texas operations. I have been employed by
ConocoPhillips Company since June 2013. I hold a B.B.A. degree from the University of
Houston.
2. In my capacity as a landman, I have access to ConocoPhillips' land records,
including oil and gas leases and releases of oil and gas leases. I have examined those leases and
can and do testify as follows:
A. The document attached at Exhibit A to this Declaration is a true and
correct copy of the Oil, Gas and Mineral Lease, as amended November 1, 1987, from Vaquillas
Ranch Company, Ltd., and others to Conoco, Inc., covering 26,622.79 acres of land, more or
less, in Webb County, Texas, as more fully described on Exhibit "A" attached thereto, without
subsequent amendments.
B. The document attached at Exhibit B to this Declaration is a true and
correct copy of the Oil, Gas and Mineral Lease dated November 1, 1987, from Vaquillas Ranch
Company, Ltd., and others to Conoco, Inc., covering 6,740 acres ofland, more or less, in Webb
County, Texas, as more fully described on Exhibit "A" attached thereto, without subsequent
amendments.
C. The document attached as Exhibit C to this Declaration is a true and
correct copy of a Partial Release of Oil and Gas Lease, executed February 17, 2014, that is
shown to be recorded in Volume 3577, Pages 454-530 of the public records of Webb County,
1
Texas. This Partial Release pertains to the 26,622.79-acre lease described in subparagraph A,
above.
D. The document attached as Exhibit D to this Declaration is a true and
correct copy of a Partial Release of Oil and Gas Lease, executed February 17, 2014, that is
shown to be recorded in Volume 3577, Pages 440-453 of the public records of Webb County,
Texas. This Partial Release pertains to the 6,740-acre lease described in subparagraph B, above.
I declare under penalty of perjury that the foregoing is true and correct. Executed in
Houston, Harris County, Texas, on the 'Vl-tvl day of July 2014.
Dana C. Huebner
2
EXHIBIT A
~- Pri>duccn U {140 ?o,~lnllnt ~ Sii1lon1r1 Co •• llou110~, T,~11
• ·\.. ·• ·~.,ViJi UO Acr.1
Po0ll11r- Pr:ovl1lo11 •. I
if• ,. OIL, GAS AND MiitJt'RAL LEASE AMENDING OIL·, GAS AND''ntNERAL_
LEASE DATED JUNE 15, 1974 (AS AMENDED) BJ;TWEEN LESSOR-AND LESSEE HEREIN
26,622.79-acres of land, more or less, situated' in Webb County, Texas more
fully described in Exhibit "A11 attaclted···he·reto Bnd made a part Of thiS Lease
for all relevant purposes, including limitations upon warranty as specifically
set out therei~.
"""""' For lli• 11urww of cakul.ilnr th• nntaJ 111:rra1nt1.1i•rdn.ti..r pnivl~td for, uld Ind lo utlm11..i 10 coaiprlM .... ?.~_,_6~-~ ..:.?..9 ....
··-··---·-----;--...acr.. ,_ ":h•lll•r It 1dul': ~prlw1 mor• or,, I~•.. . .five
t. Svbh•:t to Ill• othr proYhl11111 bu•h1 oontah1.!!, thh' In.. 1h1.ll ~- for & 111111 Gf Wtt 7Uro from. \bit due (olltd "prL'"1r7 tum.-)
and ~.J?,- llitnt!i..r .u oil, ,u or oUl_\f" "''"'~I .h.11~11od frolll '"'1
I•. nd or lan.d wl!21_ •IJJcll nld l1nd 11 ~loci b.,oundoc.
'il'>h~eri)i~M! ~ !l..rtgt.J.P~?L.~2-~. t.f-olf~1f~~~-li~not!ib.P'lf4~~.~ Mi .-U-1i=~J!1R~\!1, 1l~t..0Jllrv'°;~.~t ~. 1
·
••II• or "' tlit credit ot Woo~ 111'° Ult p/PtllllH. 10 •1ilc11 t.b1 -.1r. =•r bt unnt-=i..d 1 Lt•-.al ·J..tf..
111.,. fro.r.a llnit 10 Lime purdl1M .,.,. ror1llr oil Jn Ju
P01 ... 11lon, P•rlnr·the"nnrht Prln th1t1for"'11r.hllln ·-tor th• neld •h•ro · roducod on· lb• dcte·ot·pyrchHU (\I)
Jgl
.'b-'
'"l·
. 0.
...•·'"·M.J .
•' ti) J.
1:1
---------·-·-·----
STATE 01'------------·} TB:LU StNGL& J.CKNOWLEDOM&HT
COUNTY OF.-..- - - - - - - - - - - - -
pen.ot1all1 1p~1rtd .•. _ _ __
---------··-----------------------------------------
1tnow11 i.o m1 to 1H th1 Pinon •• whou 11....,L_, _ _ _ ,__..111b1erlti.d l.O U.1 roroio\111 l11rtNm1n\, a11d acllnowlld1td l.O m1 I.hat _.b ..... u.c:u~
th• 111JJ11 for \bt PllrPOltl and aontld.r1Uo11 \bt.rli11 UPrthld, ·
Olnn undu 1117 hlml and ual of autet, \hll tht-----.d•7 1 1 f - - - - - - · - - . - - - - · - - - · A. !;), 11---·
Nota'7 Publll In 1114 tor--------Cou11tr, - - - - - -
STATt O F - - . - · - · - - - - - - - - · - · - } TEXAS lOINT ACKNOWU:OCM&HT
COUNTY O F - - - · - - - - - - - - Stfort mt, U.t 11nd1nl1ntd, 1 Not&rr Public 111 and for nld Collnt1 and S\1\4, on \.bh du- 1>troonal17
C\011 11ndu in1 b&M and Hal of oUlct, \bl.• \ht..-----d17 ol--
No~U'f P11bllc In .ad for---··-----·-Coinlng ~O acre~, l1~ing the N\.I 1/lf of SE J/l; of CC:SO i RGNG Survl·~· 259.
(6) All of the \J, 320 :i.:r~·::. of Survey 1629 d<.•scribi?d and included In O&G Lsc. tu ();1nlel A.
Pedrotti dated Sc-j'\.-;:1h1.•r 2~. 1973, a,s amcndi:d.
T~OP00121s7:•
--~---~-.---
EXlllllT I
C1lcul1tlon of toy1lty to bt SNld on t••
d•~l't'•r•d to L••••• or Afftll•t•• far u11 (Ind
nn for renltl tn •ccard1nc1 'llth p1r111r1ph 19.
'tlnclp1h '•Y L111or roy1lty bind on th• 11r11t1r of the v1l;ht1d 1v1r1;1 ptlc•
peld by th1 thr11 l1r1111t vol\ldtrtc p1Jrcb111ra for th• c1l1nd1r quarter
In th• 111t q\llrttr of Vtbb COl.lntY or the v1l11httd 1v1r1;• of the prlc••
us1d by tilt L"•or for roy1L tY pt)'Mnt p1.1rpo11• a
0111 sources rntrVY Pl.nnlnv loot publtc1tlon or 11 r1parud to th• State of t11t11 h1r
11v1r1nc1 tu purpo••••
Utp 1. r1lcul1t1 tht v1l9ht1d 1v1r1111 prtc1 for th• .onth for 11ch of thv thr•• llr11si
volumt P'lrch1111 far tit qu1rt1r tr- th• tax r1c:ord1.
llMth•Jpnu•ry 19§!
Purchn11 fro,. Ca!l!P•ny A
Lt••t 1 100,000 z.oo 200,1163
Unit 14 ao,ooo 1.51 120,eoo
?yrehnet frO!!I Cp•p•ny I
291,733
1110,1121
'·"
TOTAL Unftltd T1x11 360,tlZI C1lc:ul1t1 613,396
Tren••l••ton
Monthly V1l11ht1d Av1r1111 Price 61J,396/l60,t121 • S1.70/MKitu.
t1p11t procedure for r11111lnln11 two 11onth1 for thh purch111r ind for re1111tnlnt t110
purch111r1.
Step 2. C1lcul1t1 tht v1hht1d 1v1r1111 price of the thr11 t1r;est volu1111trlc purch111r1 for
th1 qu1rt1r using JllOnthly v1lun fro• lttp t.
Montb•J1ny1ry \9!! Month • Februuv 12aa Hon th ' March l?IU!
?mb.WL VolUM Prlca Extanslon Vo\\nlt Prlc:a Extant Ion Vol~t Price Extension
"' .S/HCf • "' S/HCF
• "' S/MCF
•
Unltad TIXll 360,1121 1.70 61J,J96 397, t:SO t.5a 627 ,465 :S20,J06 t.5a 506,0!:S
Traru11ls1lon
uruor:
South Gulf
Tot1l1
400,m
ill..222 Lil
t, 136,044
1.55 620,346
~
=
350,723
1,!l3,74Z 1 1 047 1 009
1.60
WI.
561, 157
lli.m
soo,126 1.55 775,195
:i.!!!...222•'~·'~''---''~"""''~···
1,673,255 I, 121,432 1,756,158
Sum of Volurau IUll of E11un1!on1
l,304,485 5,263,855 1.59
sup l. C1lcul1t1 wal;htad avar191 prlca U.td by Lat••• to calculatt roy1lty p1y11111nt1 on
111 d1ltv1rtd to L11111 or l1ftlht11 and not for rn1le.
Honth•Jaouary 1?!8 Month•February 191111 Hpntb•Mprch 1988
Voh.-1 Pr I ca Extension Voluma Price Extension Vol1o1111e Prlc1 Exunalon
"" S/llCf • "' S/HCf
• "' $/HCf
•
155,000 1.60 248,000 140,000 1.62 Z26,!00 155,000 t.5e 244,900
'II' gt vo1y..., Sypi 9t E11un1ton1 Velghsrd &ysrpgs rcie•
719,700 1.60
IUp 4, CIO'lplra 111l9httd 1v1ra91 price ctlculattd In Sup Z to tha walthtad 1var•t• \111a1
prlc1 c:1lc:ul1tad In •t•p J.
Sl.60/HCF 11 1n1t1r than S1,59/KCf ao no addltlon1l roy1lty p1y111ent1 1ra required
1or thh qVlrt1r,
VOIU1111 and prlcu u11d In thh u:1111pla tra ua1d for lllunrulon and 111y not b1
rtflactlvt of 1c:tu1l condltlona.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
'-{iL
This instrument was acknowledged before me on the q day of
January, 1988, by J. 0. WALKER, JR., General Partner of Vaquillas Ranch
Co., Ltd., A Texas Limited Partnership, on behalf of said partnership.
~ . µA,. *~o,,°}--
Notary Public in an or
The State of Texas.
My Co1T111ission Expires 7-3- o 1
Lt:1vR.A BA LLEvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
oY--L
This instrument was acknowledged before me on the I day of
January, 198B, by E. WALKER QUIROS, General Partner of Vaquillas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 9~day of
January, 1988, by GENES. WALKER, General Partner of Vaqu111as Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
oar): ub~in and for
The State of Texas.
My Corrrnission Expires
,_
7- 3- '1
oq
,l_,11012.A GA usvl
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the CJ~ day of
January, 1988, by EVAN B. QUIROS, General Partner of Vaquillas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
d.,j,a ~,J(1,,'}-
Notary Public in and for
The State of Texas.
My CDITllliss1on Expires '7-3-J"A LLEN
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
~
This instrument was acknowledged before me on the '=t day of
January, 1988, by E. WALKER QUIROS, Trustee for the Vaquillas Unproven
Mineral Trust.
~··~4~~
Notary Pu lie in and for
The State of Texas.
My Conmission Expires: 7-:3- ?9
.IJA vv 811 LLEvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
n'fL
This instrument was acknowledged before me on the -, day of
January, 1988, by GENE S. WALKER, Trustee of the Vaquillas Unproven Mineral
Trust.
~" 94~'" OOr,,t
~Pub le in and for
The State of Texas
My Commission Expires: '1-3- J'?
l.,,,11uR.A "£5,.,, LlsvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the day of
January, 1988, by EVAN B. QUIROS, Trustee of Vaquillas Unproven Minera 1
Trust. ~ "
~Y
- ~ !! ), a, 4-11Q,"9-'
Public in and for
The State of Texas
My Commission Expires: '7-3-11'!
lc.u/(A 1J,.,, Lle:vJ
Printed/stamped name of Notary.
-13-
GWB2/dm 130(1)
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the CJ fl--, day of
January, 1988, by J. 0. WALKER, JR., Trustee of Vaquillas Proven Mineral
Trust.
NOtarY ic in and for
The State of Texas "
My Corranission Expires: 7-3- i?{
LAJ~A 12,,q l..LG vJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
y.LJ
the 9 day of
January, 1988, by E. Proven Mineral Trust.
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged the 9 ~ day of
January, 1988, by GENE S.WALKER, Trust Proven Mineral Trust.
otary ub 1c 1n an for
The State of Texas
My Commission Expires: 7- .3- 'g"f
L.4 J)/(A BA LL;;;vJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
on the
This instrument was acknowledged before me 9 L
day of
January, 1988, by EVAN B. QUIROS, Trustee of Vaquil 1as Proven Mineral
Trust.
Notary Public in and for
The State of Texas
My Commission Expires: 7-3-:>!j
0AuRA S-4 LLev-1
Printed/stamped name of Notary.
-14-
GWB2/dm 130(1)
·.. ·..
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 'l-J-b day of
January, 1988, by l ci
c. • .So..el
er .
Attorney-in-Fact for CONO~ INC., ali aware corporation, on behalf of said
corporation.
NotlU~in?fk'~
The State of Texas
My Commission Expires: 9-!&'· f?g'
LJ e.fl«- !/la. r Ke. rt-
Printed/stamped name of Notary.
-15·
GWB2/dm 130(1)
·r...,,.... .
EXHIBITB
.,
•
•
J :
Oo oO • •- A
"i • itu1d11uu U (1 .. 0
;. iJ:I UD Acf• l'oollns Pro.-bi..11
•
OIL, GAS AND MINERAL LEASE
TBIS AGltEEKENT mat. lbb._!~ .. ------·l!&T of. Novemb~L--------·--···--··--·-···11~?._, b.t..._11
Vaguillas RancQSoml?fil}Y.t,_Ltd.; Vaguill~.Y.9.P.roven_Mingal Tn,ist i ...Y!9..'!!.+1.~!..9.Y.~D. _
_2!!!.l~ral_!~ust..;_l!f:.S.'!!!~nd thr.g.H.&h....!~f!....&.fil!.i:nLPJ!t..t.~ ....-h..-Q.,_B!J..lc.er. Jr~·-·---···­
-~. Wal~r_gu_!~.l!.i....£~~~!!s~L~M-~<'!!!-Jb.. ...Q.\!ill.~ - . ---·-···-·----···
;::·~:~ Oii• ~ inon>. • " - add ..... lu- ·- P..!.~O:B-~;1086:-~p Texa! 7B04Ji=~===-====-~
and __G..?.!!~~.£:..z.Y-~-~ox 219L__~o'!~!Q..l!.t._'.t~!!P_-1.1.£?_~-----·--·-·---·• r..-. WITNESS!:THi
- 1• t.NoJ- 111 ccmaw...,i.101> ot......!en Do l la r..§..!!E.!!. •.9.~-1!~_99_0_4....rul!LY.~.!..1.@bl t;:_~..QJ!§.!~.E~!!P.!L.--.-- ...»oll&r•
11.J: 0•00 )Jn b.nd paMt. of Lh• roJalU11 bu.In Pf'llYIW, •11d Of U.. &pMmuts ol I.Maw banln toat.IMd, berebr sraa.ta.
kuM u.4 J.tt.o u:clual"'1' viii,;'L.'.... tor tb• InUpoM of h1n•Ua1U11s, t:Xpl.orl111', pro.p1atl11s, drUlh•s U>d minlnl' for a11d Pf'Odud.ns oll, I'll 1.1\d
all otbar mir.1rals, C011d1Ktlns p;plora~n. noloslc and ctoph111c&I 111rYirJ'I b7 ~a»b, oora Ullo sn.'Pi&;J and 111asn.tlu• -".~:~~·
au, watu an.s ~sr t111lda. and air lnto aubnrl1q Hrat.. 1.,.1,... pfoe Un•, bulldf•s ~ 1 lmnita, ~ 1t1Llo11a, te 1. _ nM 111 - . - 1tn1oo
hlAI thtr91111 11111. 011, o\'tr •nd uzw1 Ind.I DWlllubllv h~ f.lld for
----°"'"'~· ------
ITATZ 07__
OOVNT?OJ':
__} T&XUJOlNT .lCKNOWLU>OlilEHT
Nt1tu7 hbllt la -4 tor____
""""'· -----·----
t
, II ~ ~
l
~ " ~ 0
~~
ol
l f ~ • ·f .]::: 0,
•!
1
l
( I ~ ~ i:
la
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•
fF l
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~
k
'
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f.
'j
t
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•
J
• I i
• •
ADDENDUM TO OIL AND GAS LEASE
From Vaquillas Ranch Co., Ltd. et al
To Conoco Inc., Dated November 1, 1987
12. Should Lessee be prevented from complying with covenants of this
lease by reason of conditions or acts set forth in Paragraph '11' hereof,
then Lessee agrees annually to pay to Lessor an amount equal to the delay
rentals herein provided for during such period of prevention, whether same
be during or subsequent to the primary term, and such payment shall be made
at the end of each year of prevention either to Lessor or to the depository
above named for credit to the account of Lessor.
13. This lease does not cover or include any right or privilege of
hunting or fishing on any part of the above described land, and Lessee
agrees with Lessor that neither he nor his assigns or agents or employees
of his assigns, will bring firearms or dogs upon the leased premises, and
should this provision against hunting and fishing be violated by any
agents, servants, employees or contractors of Lessee 1 s assigns, any such
•
person so violating same shall have no further right to enter upon the
leased prem1 ses, and such person sha 11 be regarded as and sha 11 be a
trespasser on the premises of Lessor and be subject to the penalties
imposed upon trespassers under the laws of the State of Texas.
14. It is expressly agreed and understood that after production of .,
oil and gas in corrmercial quantities is obtained from the leased premises, ~C'I
the minimum annual income to Lessor from payment of rentals, shut-in c)1)
royalty and royalty on production shall be sum of not less than Two_($2.00)
Dollars per acre on the total acreage retained and then covered by this
lease, but this provision shall not impair the right and privilege of
Lessee, his successors and assigns, to release and surrender any part of
the above described leased premises as herein provided. Lessee 1 hfs
successors and assigns, shall detennine within 90 days from the expiration
of any lease year during which royalties have been paid on actual
production the amount of any deficiency, and shall within said 90-day
period pay such deficiency to lessor or deposit same to Lessor's credit at
GW82/dm 124(7)
°"'I JUt 1 4 ~
.......
the depository hereinabove designated.
•
Default in the payment of such
deficiency shall not operate to terminate this lease or any part hereof,
but Lessee, his successors and assigns, agrees to personally pay such
deficiency to Lessor at Laredo in Webb County, Texas, together with any
reasonable cost, including attorney's fees, incurred by Lessor in
collecting such deficiency if not paid within the 90-day period hereinabove
provided for.
15. Nothwlthstanding any other provision herein contained, this oil,
gas and mineral lease is limited to oil, gas and sulphur and minerals
produced with oil and gas, and does not include minerals other than oil,
gas and sulphur and minerals produced with oil and gas, as Lessor herein
excludes from the leasehold estate herein granted, and reserves unto
himself, his heirs and assigns, all minerals other than oil, gas and
sulphur and mi nera 1s that may be produced with oil and gas, but it is
1
expressly agreed that gas 1 as used herein includes gas, condensate,
distillate or any other gaseous substance or any other mineral produced
with oil and gas, including sulphur.
16. The right to pool under Paragraph '4' of this oil, gas and
minera 1 lease sha 11 be 1imi ted to 1ease or 1eases on 1and belonging to
Lessor herein, or in which Lessor owns an interest in the oil, gas and
other minera 1s.
17. For the purposes of the annual rental payments due under
paragraph 5, Lessor and lessee agree that said payments have been timely
paid and received, and that this Lease is perpetuated, without the
necessity of further delay rental payments, until. the expiration of the
primary term.
18. At the end of the primary tenn hereof, Lessee covenants and
L D?
agrees to execute and deliver to Lessor a written release of any and all
portions of this lease which have not been drilled to a density of at least
40 acres for each producing oil well and 640 acres for each producing or
shut-in gas well, except that in case any rule adopted by the Railroad
Commission of Texas or other regulating authority for any field on this
GWB2/dm 124(7)
• •
lease provides for a spacing or proration establishing different units of
acreage per well, then such established different units shall be held under
~e~se by-su~h production, in lieu of the 40 and 640-acre units above
mentioned; provided, however, that if at such date lessee is engaged in
drilling or reworking operations the date for the execution and delivery of
such release shall be postp~n;d a~d the entire lease shall remain in force
so long as operations on said well or wells are prosecuted with reasonable
diligence, and if, after the completion or abandonment of any such well
~.):
Lessee commences the drilling of an additional well within Ninety (90) days
from the comPlet1on or abandonment of the preceding well, or continuously
conducts drilling operations in good faith and with reasonable diligence on
said lease without any .ces_s.atjon for longer than Ninety (90) days, said
lease shall remain in full force and effect during such drilling operations
and until the end of Ninety {90) days after the completion or abandonment
of the final well, at which time Lessee shall execute and deliver to Lessor
said written release, releasing all portions of the lease not then so
developed, Each retained unit shall contain at least one (1) well
producing or capable of producing oil or gas in paying quantities, and the
acreage within a unit shall be contiguous.
lf, after the date the partial release called for under this Paragraph 18
talces affect, all production from a retained unit around a well or wells
cease to produce oil or gas in commercial or in paying quantities, Lessee
shall have one hundred eighty (180) days thereafter within which to
commence operations to establish or re-establish production therein in
cormnercial or paying quantities, whether such production be from the same
wellbore or other wellbore. If such operations result in commercial
production, then this 1ease, as it applies to such unit sha 11 continue
until such corrmercial or paying production again ceases. However, if such
operations do not result in corrmercial production, then Lessee shall have
ninety ( 90) days after completion of such operations within which to
commence drilling ·-or reworking operations within such unit, and this lease,
as it applies to said unit, shall remain in force so long as operations on
said well or for drilling or reworking of any additional well therein are
prosecuted with no cessation of more than ninety {90} consecutive days, and
if they result in the production of 011 or gas therein, so long thereafter
GWB2/ dm 124 ( 7)
"· ...
•
as oil or gas is produced from said unit.
•
As to any unit upon which
cornnercial production may periodically terminate, the above right to timely
resume operations and continue this lease as to such unit shall be
reoccurring right.
The stipulation above as to the size of retained tracts around wells shall
never be construed as a satisfaction of Lessee's right, duty and obligation
to reasonably develop the leasehold held by Conoco or its successors or
assigns. After November I, 1990, Lessee agrees to dri 11 such add it i ona 1
we 11 s on the leased premises or such port i ans thereof as may be in force
and effect from time to time, as may be necessary to reasonable develop the
same for the production of oil and/or gas as a reasonable prudent operator.
19. A portion of paragraph 3 has been deleted and the following Is in lieu
thereof.
(b) on gas, including casinghead gas or other gaseous substances,
produced from said land, the Lessors royalty shall be calculated and
paid as follows:
a) Sales To Non-Affiliated Third Parties:
In the event Lessee enters into a gas sales contract with a
non-affiliated third party, Lessor's royalty shall be one-fifth
(1/5) of the gross proceeds received by Lessee from the sale of
such gas.
b) Sales To Related Or Affiliated Entities For Resale:
Jn the event Lessee enters into a gas sales contract to sell gas
to a related or affiliated entity, then Lessor s royalty shall be
1
computed on the greater of the following:
I. One-fifth (1/5) of the gross proceeds received by Lessee or
any affiliate or related entity from the sale of such gas to
the first non-affiliated entity, or
2. One-fifth (1/5) of the highest price reasonably obtainable
for gas by lessee and other producers or operators in the
-4-
GWB2/dm 124(7)
• •
east one-fourth of Webb County, Texas, who are producing gas
of like kind, quality and quantity.
11
In this regard, it is understood that the highest price
reasonably obtainable" may be equal to, but is not
necessarily, the highest price then being obtained by other
producers or operators in the east one-fourth of Webb
County, Texas, who are producing gas of like kind, quality
and quantity.
c) Taking, Selling Or Delivery Of Gas To Lessee Or Its Related Or
Affiliated Entities For Use (Not For Resale):
In the event Lessee takes gas for its own use, or sells or
transfers gas to a related or affiliated entity for use, then
Lessor's royalty shall be computed on the greater of the
following:
!. One-fifth (1/5) of the highest price reasonably obtainable
for gas by Lessee and other producers or operators in the
east one-fourth of Webb County, Texas, who are producing gas
of like kind, quality and quantity.
In this regard, it is understood that the "highest price
reasonably obtainable" may be equal to but is not
necessarily the highest price then being obtained by other
producers or operators in the east one-fourth of Webb
County, Texas, who are producing gas of like kind, quality
and quantity, or
2. One-fifth (1/5) of the quarterly weighted average of the
prices being paid by "purchasers" (as hereinafter defined)
in the east one-fourth of Webb County, Texas, who are
purchasing gas of like kind and quality. For the purposes
of calculating the average price under this Paragraph c2,
prices paid shall be those as reported in the Energy
Planning Book publication or as reported to the State of
-5-
GWB2/dm 124(7)
•
Texas for severence tax purposes.
the three largest purchasers
• "Purchasers 11 sha 11 mean
based on volume of gas
purchased for such calendar quarter, in the east one-fourth
of Webb County Texas.
1 For an example of the calculation of
the quarterly weighted average of such price, see Exhibit
Lessor and Lessee shall meet within eleven (11) months after the end
of each calander year. At least thirty (30) days prior to such meeting,
Lessee should furnish to Lessor a statement or other documentation of the
basis upon which royalties accrued to Lessor under the terms of the Lease
for the previous calender year. Any additional royalties calculated by
Lessee to be due, if any, shall be paid at such meeting. Within one (1)
year from delivery of the above referred to statement or other
documentation, Lessor shall notify Lessee of any discrepancies. Failure to
notify Lessee timely of any discrepancies shall constitute final acceptance
of royalty payments as covered by such statements or other documentation.
The first period for which Lessee shall prepare such statements or other
documentation shall begin on April 1, 1988 and end on December 31, 1988.
Nothing in this paragraph shall preclude Lessor from claiming any royalty
which Lessor is entitled to as a result of mistake in computation,
oversight in computation, or error in computation of royalty or which may
result from the subsequent disclosure of a discrepancy.
LESSOR'S royalty shall be without deduction for any costs, such as,
but not limited to, costs of producing, gathering, storing, separating,
treating, dehydrating, compressing, processing, transporting and otherwise
making the oil, gas and associated substances ready for sale or use, except
for a) severance and related taxes, and b) reasonable transportation
expenses which may be necessary to be paid to non-affiliated third parties
or entities to get Lessor's gas to a market or point of sale off the leased
premises and which sale or sales will result in a net price equal to or r' <.
I" I
higher than if said gas had been sold at the wellhead.
LESSEE may submit a copy of a proposed gas sales contract to Lessor
which is acceptable to Lessee and request that Lessor approve same for
-6-
GW82/dm 124(7)
". -
•
royalty computation purposes.
•
Lessor sha 11 have thirty (30) days after
receipt of a gas contract to approve same. If Lessor approves same or does
not timely decline to do so, then Lessor's royalty on gas sold under such
gas sales contract shall be based on the gross proceeds received under said
contract.
GAS contracts with a term in excess of three (3) years shall contain a
provision for price redetermination no later than the end of the 3rd year
and subsequent price redeterminations thereafter at intervals no greater
than two (2) years apart.
20. Lessee agrees to fill all slu~h pits and level the same when they
have ceased to be used and to restore the land to as near 1ts original
state as is practicable and to pay for damages to the surface of the land
and the improvements, water wells, growing crops and livestock thereon, and
to any other personal property of Lessor, Vaquillas Ranch Company, Ltd.,
occasioned by, arising out of, or resulting from operations by Lessee, his
agents, employees or independent contractors on the land hereby leased to
Lessee. Lessee also agrees, when requested in writing by Lessor. to
divulge to Lessor true and correct information as requested by Lessor as to
all drilling, producing and marketing operations conducted under this lease
and to furnish to Lessor copies of all electric well logs taken hereunder;
provided, however, lessee shall not be obligated to release such
information until it has been released to the industry.
21. Lessee hereby agrees to ensure that the two exit gates on F.M.
2895 (Forest Gate and Reynolds Gate) are guarded in an efficient and
prudent manner during drilling, reworking or plugging operations and at
other times as mutually agreed to by Lessee and Lessor. As to the exit
gate on the north side of U.S. Highway 59, Lessee agrees to use its best
efforts to work out an arrangement with other exploration companies using
such gate to ensure that it is guarded in an efficient and prudent manner
during drilling, reworking or plugging operations and other times as
mutually agreed to by Lessee and Lessor. Further, Lessee agrees to use its
best efforts to work out an arrangement with TransAmerican Natural Gas
Corporation or its successors or assigns to ensure that the exit gate
-7-
GWB2/dm 124(7)
• •
....
located 9 miles north of Aguilares, Texas, on F.M. 2895 is guarded in an
efficient and prudent manner during drilling, reworking or plugging
operations and at other times as mutually agreed to by Conoco and Lessor.
In regard to gates used by lessee and other exploration companies, Lessee
agrees to pay its share of the cost of guarding such gates when such gate
guards are required under this agreement. Lessee shall not be obligated to
furnish a gate guard on any gate which has been abandoned or is not being
used by Lessee.
22. Lessee agrees that before abandoning any well drilled on said ;j'., '0 ':)
lease for oil or gas purposes, it will notify the owner or the surface
estate in person or by telephone of its intention to do so, and it will
allow said owner of the surface estate a reasonable time, not exceeding
twenty-four (24) hours thereafter, within which to elect to take over the
hole for the purpose of attempting to make and complete a water well.
Lessee agrees to consult with such surface owner as to the location of a
potential water zone, without any liability or warranty for such
consultation. Upon the owner of the surface estate election, within the
specified time, to attempt to complete the well as a water well and
complying with all rules and regulations of the Railroad Co"'11ission of
Texas and applicable statutes, Lessee will, at its expense, set all plugs
to just below the designated water sand as may be required by the Railroad
Convnission and thereafter deliver the well to said owner of the surface
estate, leaving in such well all surface casing and such intennediate
casing as may have been run and set to at least the depth of the designated
water sand and thereafter the owner of the surface state shall own the well
and shall be responsible for all subsequent matters in connection with the
well and for compliance with the applicable statutes and regulations of all
regulatory agencies having jurisdiction. Lessee shall have no liability to
Lessor in connection with any of the operations which may be conducted by
the owner of the surface estate who shall thereafter bear all
responsibility and liability with respect thereto. It is expressly
understood that lessee shall not be required to furnish any additional
casing or other equipment for any well plugged back at the request of the
owner of the surface estate under this paragraph. Should the owner of the
surface estate elect not to attempt to make a producing water well out of
-8-
GWB2/dm 124(7)
....
•
any such hole, Lessee shall plug the well in accordance with all applicable
rules, regulations and statutes.
23. It is expressly agreed and understood that for the purposes of
this lease the following definitions shall apply:
11
Cormnences 11 - A well shall be deemed corranenced on the
date which the drilling bit enters the
earth for the drilling of a well.
11
Abandoned 11 - A well shall be deemed abandoned on the
day when it is finally plugged as a dry
hole.
11
Completed 11 - A well shall be deemed completed thirty
(30) days after the day the Lessee sets
production casing.
24. Lessor and Lessee agree to limit the conrnencement of actual Ao~
drilling during deer hunting season to 1) those wells drilled in areas
which would not disturb deer hunting, and 2) offset wells. If Lessee must
co1T1J1ence a well during deer hunting season to perpetuate said lease, then
Lessor will either a) not object to the drilling of such well during deer
hunting season orb) agree to extend the commencement date for such well to
a mutually agreeable date after deer hunting season ends. For the purposes
of this paragraph "deer hunting season" shall be that period defined by
State law.
25. Nothwithstanding anything contained herein to the contrary, the
lessor at any time and from time to time, upon not less than ninety {90)
days notice to the holder of this lease, may elect to require the payment
of any royalties accruing to such royalty owner under this lease to be made
in kind; provided that any expenses incident to the exercise of such
election shall be borne by Lessor· and such election shall be for periods of
not less than twelve (12) months. Lessor shall only be allowed to take in
kind when lessee is producing for his own account. In the event of such an
election by Lessor, lessee shall cooperate fully with Lessor in allowing
Lessor to take their royalty in kind, including permitting lessor to use
Lessee 1 s wellhead equipment and, to the extent that Lessee has assignable
rights, the use of Lessee's purchaser 1 s transportation facilities in good
faith and not to exceed preva i 1 i ng charges for s imi 1ar services in the
industry at the time if Lessee or its affiliates are transporting the gas,
-9-
GWB2/dm 124( 7)
•
.......
••
but if Lessee has a third party contract for the transport of said gas,
Lessor will be bound by said contract. Should Lessee desire to enter into
a gas purchase contract having a tenn of more than one (1) year, then (a)
Lessee shall include in such contract a provision that allows Lessor to
elect to take its gas in kind and be released from such contract one
hundred twenty (120) days after notice, or (b) Lessor may approve of such
contract in writing, 1n which event, Lessor may elect to take its gas in
kind either at the end of such gas contact or'one (1) year after notice to
Lessee, whichever happens sooner. Any equipment installed by Lessor
necessary to take in kind must be approved by Lessee and maintained
according to Lessee 1 s specifications.
If Lessee is unable to obtain a more favorable gas contract because of
Lessor's reservation of this election to take in kind, then Lessee may
elect to give notice of its intention to sign a gas contract acceptable to
Lessee and request that Lessor join in signing same, and if Lessor elects
to sign same, then Lessor's royalty share of revenue shall be bound by such
contract and Lessor may not elect to take its royalty in kind during the
term of such gas purchase contract.
DATED this 91Jr day of January, 1988.
VAQUILLAS RANCH COMPANY, LTD. VAQUILLAS UNPROVEN MINERAL TRUST
By: ;&.
E. Wa
By:
By:
-10-
GWB2/dm 124(7)
• •
......
VAQUILLAS PROVEN MINERAL TRUST CONOCO INC.
By~~4 rif1 By: -'l.fd:::;:f;fJ5a,.o
Ul...2.22
lotllt 1,136,044 1,IJJ,74Z 1,047,009 1,67J,ZS5 1, IZ1,4JZ 1,756,858
SU- of V!!IYIHI Su,. 2f [!ltt"'ton1 V1!9bt1d Av1c991 Prier
1oul• 5,Z6l,155 1,59
Sttp J, C1\c:11l1tt v1l9bttd 1v1r1111 pclc:t 1111d by Ltnt• to c1lc11l1u roy1lty p1y111nu on
1111 dtllvtrtd to Lt11u or 1ftlllnt1 tnd not for r11111,
t!opth•Jenyuy 1000 t!ontb•ltbrupy 12AA Montb•H11rcb 12AA
Volu.1 Prlc:• E:r.t1ntlon Yolu111 Prlc• h:t1n1ion Yolu.111 Price Extrn1lon
"" S/ltCl
• "" S/MC,
• "" $/lltl
1n,ooo 1.60 241,0DO 1'0,0DO \,62 U6,&00 155,000 1.sa 2U,900
he 2f vgtu.,,.. SUI! gf fxt1n1 Igo•
719,700 1.60
ll•P ' · Cffip•rt 111lthnd 1Y1r1111 prlct c1lcul1t1d In sup z to the vthht•d •v1r191 ~"'''
pcl;e ;1Lc:ul1od In :sup J,
S1.60/MCr 11 ' ' ' " ' ' Hllfl Sl.50/MCf 10 M 1ddltl2n.1l roy1tty P•Y••l\U lfl r1q.1.lr•d
for thh qu1rt1r,
llOUt Vol"'-"• UICI prlcu uud In thl1 1x19f!l• 1r1 u11d for l\\uttrnlon and ••Y not b1
r1H1nlvt of 1c:t111I c~hlona,
' ..
'
'
. THE STATE OF TEXAS
COUNTY OF WEBB
•
§
§
§
•
This instrument was acknowledged before me on the 9y.f-_,day of
January, 1988, by J. O. WALKER, JR., General Partner of Vaquillas Ranch
Co., Ltd., A Texas Limited Partnership, on behalf of said partnership,
i-- ~
.. ....';·.·
.· ·. ·- .......
._\.:. " ..•. -··
·· .........
~·~
otarY ~600•. s-
~le in and for
!~:~ .. ._ The State of Texas.
\ :
My Coomission Expires
.LA (J/?Jj BA LLi::v.J
7- B -'89
·• '"'·
~ .......
-~. ___ ..... Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 9'1+- day of
January, 1988, by E. WALKER QUIROS, General Partner of Vaqu1llas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
• f •
~)i~aQ_Q,,[Y
:...~~"',·
• _:':!-. ..,.
otal'Yublic in and for
§ ~i The State of Texas.
My Co11111ission Expires '7-:3- o0 9
•, ~A-oJRA ~ LlEW
\. -~~·:--..... -· Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 't'ff- day of
January, 1988, by GENES. WALKER, General Partner of Vaqui11as Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
~~~~,,;)--'
NOtarYUbfc in allor
The State of Texas.
My Co11111ission Expires 7-3-89
LAat.. Y'A-'ert"
Printed/Stamped name of Notary.
·15-
GWB2/dm 130(1)
EXHIBITC
PARTIAL RELEASE OF OIL AND GAS LEASE
STATE OF TEXAS §
§
COUNTY OF WEBB §
WHEREAS on June 15, 1974, Vaquitlas Ranch Company, Ltd., a limited partnership acting- therein
through its general partners, J.O. Walker, Jr., Gene S. Walker, Evan B. Quiros and E. Walker Quiros, as
Lessors, and Continental Oil Company, as Lessee, entered into an Oil and Gas Lease, recorded in Volume 460,
Page 324 of the Deed Records of Webb County, Texas, covering 26,622.79 acres of land, more or less,
hereinafter referred to as "the Lease,· and;
WHEREAS the Lease was revised, more particularly described in that certain Oil, Gas and Mineral
Lease Amending Oil, Gas and Mineral Lease dated November 1, 1987, as evidenced by said Memorandum of
Amendment to Oil and Gas Lease, dated June 16, 1988; recorded in Volume 1303, Page 879 in the Real
Property Records Of Webb County, Texas.
WHEREAS the Lease has also been amended from time to time, as reflected in the Public Records of
Webb County, Texas, and all references to the Lease herein shall be to the Lease as amended.
NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt of which is hereby acknowledged, ConocoPhillips Company, does hereby
RELEASE, RELINQUISH and SURRENDER unto the Lessor, all of its right, title and interest and estate in the
Lease SAVE AND EXCEPT THOSE LANDS AS MORE PARTICULARLY DESCRIBED ON THE EXHIBIT
"A," AND FURTHER DESCRIBED ON EXHIBITS A-1 THROUGH A-36 ATTACHED HERETO AND MADE A
PART HEREOF.
Provided, however, Lessee shall have and retain full rights of access and all easements of ingress and egress
over and across those lands covered by the Lease, including the lands which are hereby released, for the
production of oil and gas and operations in the acreage not hereby released, and Lessee shall not be required
to remove or relocate any pipelines, utilities, roads, tank batteries, or other surface equipment or installations
from any portion of the Lease or lands herein released for so long as same continues to be used for the
exploration, development or operation of such portions of the Lease that continue in force and effect
This instrument is binding upon and inures to the benefit of the parties hereto, their heirs, successors and
assigns.
Executed this ) 1 'th day of f.k,,4 ,2014.
LESSEE:
::~oc~
Michael P. Rose
Attorney-In-Fact
Volume: 3577 Page: 454- 530
Ooe#11!M188
Doc Type: PARTIAL RB.EASE OF OIL & GAS LEASE
RecOC'd Date: 21251201411:28:17 AM Record By: Mtc
199129-001 Fees·.$330.00.
Margie Ramirez Ibarra, Webb County Cieri!.
ACKNOWLEDGEMENT
STATE OF TEXAS §
§
COUNTY OF HARRIS §
ACKNOWLEDGED BEFORE ME, this 11le>. day of F...
'k!onnJ , 2014, by
Michael P. Rose, Attorney-in-Fact for ConocoPhillips Company, a Delaware (Corporation, on behalf of said
corporation.
199129-001
OVERALL EXHIBIT "A"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH RETAINEO TRACTS 1-36
CONTAINING A TOTAL OF 21,291.86 ACRES
GRAPffiC SCALE
( ltl f[[1 )
CONOCOPHILLIPS COMPANY
HOWLAND ENGINEERING AND SURVEYING CO., _
Tl!PEF'll-nlleghn--~ TDPl.$FWrl~No.
VAQUIUAS RANCH RETAINED
TRACTS BASE HAP
T81~N.-A_,.,. LMBl£S. l!Cl'll\MD Elfl)ljEElllH(:
N10 ~C CO., 1iC. >SSUJtS NO RESPONSIBIUTY TO LOCAlt PPEl.11£ Oii CAa£ ~CS.
CHECKED BY: J.S.
=~H:c~RE~~~~~~E/::.O!At rn: O'ME1!SHP Oii
JOB No. 221Ji-1J
c:oPmOfT HOWl.IHJ OICKV!tlr:l N10 ~ CO., lt\HCl'MNID\i\IR\IO'WG DUAA™ltll\lob>\NIN1lJl·lJ\271ll·lJ.do.g. IJl/201• 2:1C:IC ;>M, , . _ POf
HOWLAND
ENGINEERING AND SURVEYING CO.
EXlllBIT "A-1"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 199129--001
RETAINED TRACT 1
(VAQUILLAS RANCH WELLS A-3 No. 61, No. 67, No. 199, No. 200, & No. 203)
640.00 ACRES
A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the Vaquillas
Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1955, G.C. & S.F. R.R.
CO., Abstract 1328, Webb County, Texas, and being more particularly described as follows:
BEGINNING at a foWld Y:i." iron rod next to a fence comer, which bears N 56°51 '30" W, a
distance of 886.46 feet, from the Vaquillas Ranch A 3 No. 199 Well;
THENCE, N 89004'24" E, along an existing fence line, a distance of392.77 FEET, to a point
for a deflection right;
THENCE, N 89°17'59" E, continuing along said existing fence line, a distance of 1,379.80
FEET, to a point for a deflection right;
THENCE, N 89042'30" E, continuing along said existing fence line, a distance of 695.33 FEET,
to a found 1 Y:i." pipe at fence comer, for the Northeast comer hereof;
THENCE, S 00°20'36" E, along an existing fence line, a distance of2,S33.32 FEET, to a point
for a deflection right;
THENCE, S 00°19' 10" E, continuing along said existing fence line, a distance of2,829.52
FEET. to a point for a deflection left;
THENCE, S 00°20'17" E, continuing along said existing fence line, a distance ofl,697.58
FEET, to a point, for the Southeast corner hereof;
THENCE, S 89°39'43" W, a distance of 4,334.37 FEET, to a point for the Southwest comer
hereof;
THENCE, N 00°38'14" W, a distance of 4,273.09 FEET, to a point under an existing fence line,
for an exterior comer hereof; j
p
THENCE, N 89°20'19" E, along an existing fence line, a distance of 1,910.21 FEET, to a fowid
Vi" iron rod at fence comer, for an interior comer hereof;
THENCE, N 00°39'19" W, a1ong an existing fence line, a distance of3,668.08 FEET, to a point
for a deflection right;
THENCE, N 00°33'14" W, continuing along said existing fence line, a distance of96.40 FEET,
to the POJNT OF BEGINNING, containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET! OF2
H:\HOWLAND\SURVEYING DEPARTMEN1\lobs\20\3\l2131.l-13\22131.1-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue 1 P.O. Box451128 (78045) i Laredo, TX78041P.956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 l TBPLS Arm Registration No. 100464-00
EXHIBIT "A-1"
CONOCO PHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001. N RETAINED lRACT 1
(VAQUIUAS RANCH A-3 WELLS No. 61, No. 67, No. 199, No. 200, & No. 203)
640.00 ACRES
WEBB COUtm', TEXAS
SURVEY 294 N l04-•24• E N 89"17°9• E SURVEY 2'14
-- --- --
ABSTRACT 2227
--'-'~~--
~")------:
Found 1/Z' H 00"33'14• W
Iron Rod 98.40'
392.Tt 1,379.80'
-.:::..;;;;~~+-"=----,_..;;;;.;;;..~
'-..~,. _r.,__10o VAQUIUAS RANCH
61
Dall. C. FANNING (BHL)
ABSTRACT 2228 '
"' UI
SURVEY 1955
G.C. & S.F. R.R. CO.
ABSTRACT 1328
WEBB COUNTY, TEXAS
WEST 1/2
SURVEY 1844
P.K. CONNOWAY
N 89"20'19• E ... 1,910.21' ABSTRACT 2188
VAOUILLAS -¢-
Found 112· RANCH A-3 No. 67
'~""'
0 Fonce Comer
_n_VAQUILLAS
¥ RANCH
No. 211
CONOCOPHILLIPS COMPANY
VACUlLLAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED)
RETAINED 840.00 ACRE UNrT
SURVEY 1958
H. E. BROCK
ABSTRACT 2580
VAOUILLAS RANCH
A-J No. 200 (BHL)f.t:....
~ VAOUILlAS RANCH
A-3 No. 200 (SHL)
z
VAQUJLlAS -¢f)VAQUILLAS
RANCH RANCH
A-3 No. 203 A-3 No. 203
(BHL) (SHL)
UI
s 89'39 4Ji w- 4.334
1-.-..-~-.-~ ......... ------------------------.,..-L------
.-.-......................
GRAPHIC SCALE
SURVEY 2058 SURVEY 851
T C.T. & M.C. R.R. CO .
ABSTRACT 2880
S.B. TURNER
ABSTRACT 1842
LEGEND Dale
HOWLAND
ENGINEERING AND SURVEYING CO.
lllPE"'ni~Na.1'-«1111" TBPl.SFm>Reglsltolb\Ho..1-..00
~
0 = HORIZONTAL WE:Ll
stJRr>.a: LOCATION
WW.
UHIT UN£
04-05-lJ
10-1&-\J
7&15N._ ........ ~lX.nGlt P.05&.122.+ltl
www.howlundc::ornpanltt!!.eom """ "'"
""'
SURVEY UNE
WARNING: a>.s1S OF BEAAINC: C.?.S. Tx. South 2<>1"1c. NAO. 27.
1NS l'lAT "'IV llOT .51-JJW .OU CROss:tlCS ~ PF'£lJ!-IES CR Cla!S. ~D ENCINtEJllHG
Nf:J SUIM:'T"llC CD.. INC. ASSUMES HO llfSPOHSltlUTY TD ~Tt ~EU'< OR CA78041 P. 956.722.4411 1 F. 956.722.5414
TBPE Firm Registration No. F-4097 : TBPLS Firm Registration No. 100464-00
EXHIBIT "A-2"
CONOCOPHILLIPS COMPANY
VAQUJLLAS RANCH LEASE 199129-001 N RErAJNED TRACT 2
(VAQUJLLAS RANCH A-5 WELLS No. 126, No. 166, No. 205, & No. 230)
640.00 ACRES
WEBB COUNTY, TEXAS
I I
•
! ,,..
J
SURVEY 1954 SURVEY 1956 SURVEY 1956
Dall. C. FANNING D. C. FANNING H. E. BROCK
(PO~
ABSTRACT 2226 ABSTRACT 2591
I ABSTRACT 2560
~)_
Found 60 0 Noa
0 Fence Comer{ ti H 89"35'52• E
0 found Fenc:o
Carner Poat
I
'\l"~~..1.~~....:";..:: ..
:.:..::.:·"'::..·~·~-;..:~~..~·~J:'.!:-~.==~,;'.'.:~~,-:-i~~.==~·;r•:77:·:""~,~·=='.":",:'i'f_-T"I~~·~~
...
'\, t x ~
'
'\.
',1-
I
r
:
I.
',~
'\~o....
:
:
><
\
I
1
Foundt
'
' I
I
i•
Iron Rod '\ I VAQUILLAS _A_ ~.1
O Fenca Comer ', l VAOUILLAS RANCH RANCH V
-------~~~--------0
VAOUlLLAS RANCH
.
-Q-A-5 No. 205
(BHL)
A-5 No. 166 ~I
ro·1
A-5 No. 205 VAQUILLAS RANCH-¢'. .~.1
(SHL) A-5 No. 2.30 -
0 (BHL) · ':n 1
VAQUILLAS RANCHO I')
"' "'"'
·"' 11; SURVEY 2057 A-5 No. 230 ~"'O i'
~o:"' "'
"'"'·~ ~..; C.T. & M.C. R.R. CO.
(SHL)
~~~
ABSTRACT 965
"'""""'.... ' WEBB COUNTY. TEXAS
1:
"'cJ !:]
ci
~ _n_ VAQUILLAS
V RANCH
A-5 No. 126
~
J
VAOU!LLAS i)
• RANCH
• A-5 No. 118
I• f
-~-:;:-0~ ~
SURVEY 2060
• L.F. UPDEGROVE
., "'
.,00::;;;
li
ABSTRACT 3330
I• , ~~=
>--Cf.)~
A VAOUILLAS
[;;' "'
GRAPHIC SCALE
¥. RANCH
A-5 No. 40
: NE 1/4
SURVEY 2060 I
:
!5 ~ &;
T I• R.D. GUINN
ABSTRACT 3331
•
en"'!:]
( ti FEET)
I heh • lDCOFl.
I
t£GEND R...,!slon 0<1!•
HOWLAN~ __ ,_ ....
"' HORIZONTAL w:EtL
SUllrAC£ 1.0CJiTlOH ,'
04-12 \J
OS-11 \J
ENGINEERING AND SURVEYING CO.
TBPEArmRfO'll' AU. mosstlCS Of Pl'WIC OR C\ll.ES. HOOl\NIO [NOll££JIN;
,tllO SIJR\ltYlllG CO., INC. ASSIJloC5 NO RESPOIG!llU!Y TO l..OCATE PIP£ll'< OSI CMllL CllOSSN'lS.
t<0 C>J,111 IS ll£R£B"I' WD£ R.E~ CIMIEHT OR =wl.. SUIT~ f'El: OWMERSHI' OR
FlEW DATE
'" """
""
PAGE"
'"
DRAWN BY:
CHECKED BY:
LAF./S.LM.
J.S.
lt$SCll. !)llS DAAJrllfC w.D!: EXCUISMl.Y ftlR C0H0coPt-.u>s Cl)UIWN.
JOB No. 221J1.2 lJ
~ ~o [N(;»lttAINQ NrJ ~c co., 1HC. 201JC
SHEET: 2 OF 2
HOWL.lt\~~D;
ENGINEERING AND SURVEYING CO.
EXHIBIT"A-3"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 3
(VAQUILLAS RANCH A-5 WELLS No. 40, No. 97, No. 101, No. 108,
No. 110, No.113, & No. 118)
515.26 ACRES
A TRACT OF LAND CONTAINING 515.26 ACRES, more or less, being out of the
Vaquillas RJmchLease 199129-001, 26,622.79 Acres (Called), situated in Survey 2059,
C.T. & M.C. RR. CO., Abstract 984, acd Survey 2060, L.F. Updegrove, Abstract 3330,
Webb County, Texas, and being more particularly described as follows:
BEGINNING at a point which bears N 11°25'37" W, a distance of 2, 799.89 fee~ from
the Vaquil!as Ranch A-5 No. 108 Well;
THENCE, EAST, a distance of 6,540.37 FEET, to a point for the Northeast corner
hereof;
THENCE, S 01°14'46" E, a distance of 1,214.36 FEET, to a point for an exterior comer
hereof;
THENCE, S 88°51'20" W, a distance ofl,363.69 FEET, to a point for an interior
comer hereof;
THENCE, S 00°34'04" E, a distance of 1,364.74 FEET, to a point for an exterior corner
hereof;
THENCE, S 89°54'17" W, a distance of 2,712.87 FEET, to a point for an interior
comer hereof;
THENCE, S 00°23'37" E, a distance of24.86 FEET, to a point for a deflection left;
THENCE, S 00°33'33" E, a distance of2,796.79 FEET, to a point under an existing
fence line, for the Southeast comer hereof;
THENCE, S 89°25'42" W, along an existing fence line, a distance of2,494.30 FEET, to
a point for a deflection right;
THENCE, S 89°37'21., W, continuing along said existing fence line, a distance of60.97
FEET, to a point for the Southwest comer hereof;
THENCE, N 00°14'54" E, a distance of5,457.34 FEET, to the POINT OF
BEGINNING, containing 515.26 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
11:\HOWLAND\SURVEYlNG DEP ARTMEN1\Jobs\2013\22131.3-13\2213l .3-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue . P.O. Bo)( 451128 (78045) ; Laredo, TX78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 : TBPLS Firm Registration No. 100464-00
EXHIBIT "A-3"
CONOCOPHILLIPS COMPANY
VAQUILI.AS RANCH LEASE 199129-001 N RETAINED lRACT 3
(VAQUILI.AS RANCH A-5 WELLS No. 40, No. 97, No. 101,
No. 108, No. 110, No. 113, & No. 118)
515.26 ACRES
WEBB COutfTY, lEXAS
SURVEY 2057
SURVEY 1953 C.T. & M.C. R.R. CO.
G.C. & S.F. R.R. CO. ABSTRACT 985
ABSTRACT 1329 A VAOUILLAS
y RANCH
A-5 No. 126
-- -~--..-----------+--'BIST='--~-"o....
""'"-'"$1';.;...._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _<>- - - --
'' l' -¢-
'\ ' VAQUILLAS VAQUJLLAS
''
CONOCOPHILLIPS COMPANY
RANCH A-5 No. 101
VAQUILlAS RANCH LEASE 199129-001
1-.£
1-"
;,-:
;:!: I 26,622.79 ACRES (CALLEO)
A-5 No. 116
-¢-
\''• NI RETAINED !51!5.26 ACRE UNrT SURVEY 2060
\'ij. I
L.F. UPDEGROVE
\!1, t ABSTRACT 3330
\£ I
s 88'!51"20. w
ll
\t->
: VAOUILLAS 1,383.69' 0 0::;
I RANCH A ~111~
. \~
,.\~.:' I SURVEY 2059
C.T. & M.C. R.R.
ABSTRACT 984
co. I A-5 No. 40 ¥
ILi
!to'-
or-
SW!/40F
NE 1/4
:
ru§:._.
~zu
~
~ '!t_ SURVEY 2060 1 > Ul Ci?
••
\I < I
WEBB COUNTY, TEXAS
I !! ?!, R.D. GUINN I 0: .( E-<
U) - ABSTRACT 3331 1 ~ i;ri ~
! 3329
S.E. 1/4 OF :
SW 1/4
SURVEY 2060
I A VAQUILLAS RANCH
V l-4 No. 105
R.D, GUINN
VAQUILlAS A : ABSTRACT 3331 :
RANCH y
A-5 No. 110
I I
DETAIL: N.T.S.
-s 89"37'21· w
60.97'
NORTH HALF SURVEY 1838
S 00'23'31 E ? P .K. CONNOWAY
24.86' _,/ ABSTRACT 2187
GRAPHIC
~
..•Jo-"
lol•
~~
T
(If fUT)
I Inell - lOOOfl.
-- ----- -- --
HOWLANIJ 0
-¢-
LEGEND
= llORIZONTAI. WElL
SURFACE l..OCATIOH
R•vlllon
' . """ :
12. 13 I
OS-17-13
ENGINEERING ANO SURVEYING CO.
• WW.
" UNIT LINC ' 0&-06-IJ
•'
T&PEF'im~NO.fJHR TBPUIAm ~J'ol>.1~
• ftNCE UHE
78l~H.e.t.llA...,. Lot.io,l)'..nol1 P.llM.Tn.4411
www.howtandcomp.1mles.com '
- - - - - - - .. Tits
- • • - ' " S U R V E Y LINE
10-1a-1J
~ BASIS Of BEARING: G.P.S. Tx. South Zon~. NAD.-27.
FIELD lli\TE PAGE s
MS Pl.Ar 11.78041 P. 956.722.4411 1 F. 956.722.5414
TBPE Firm Registration No. F-4097 TBPLS Finn Registration No. 100464-00
II I 1
'
i'
~
SURVEY 1633 ' i;
G.C. & S.F. R.R. CO.
ABSTRACT 1323
t-· N 89"S2'oo• E ,.. ~48Sl.7SI'
~- .1
: -~
CONOCOPHILLIPS COMPANY
l...
I
SURVEY 467
A.B. & M.
ABSTRTACT 799
I SURVEY 1664
G.T. BLACK
ABSTRACT 2696
VAQUILLAS RANCH LEASE 199129-001
i,.
I
26,622.79 ACRES (CALLED)
RETJJNED &40.00 ACRE UNIT
I~ "' s 89"08'23" E H . •
H22.2 '
VAQUILLAS RANCH
STATE G.U. No. 1-R
-¢-
I' y~J t'E-PO~
l j
~ -¢- I I
.I."'/.~
SURVEY 1634
~ N.B. GOSSE'IT VAQUILLAS RANCH
CO. LTD. No. 20
81 .JtllfJ ILi
z ABSTRACT 2252 -~ ~/:t ~~
WEBB COUNTY, TEXAS
VAQUIUAS
VAQUILLAS
RANCH CO. I 1-.,
I !J/C!, :-'I:!:
,.,-~
RANC~ " . !;!
RANCH CO. LTD. No. 11
LTD. No. 30
-¢- VAQUILLAS -
-¢- STATE G.U. No. S W
s 89'43'43• w ... 10,925.98' -:- I
SURVEY 468 '
IVAQ~l:.
VAQUIUAS RAt.;CH N.B. GOSSETT
CO. LTD. No. 73
ABSTRTACT 2255
GRAPHIC SCALE -¢-
k.•.-L:Uoo \j 1j ' -¢- VAQUILIJIS RANCH ·"'· - - -
( IH rtET )
I 1nllS Pl>.T IAAY llOT SHC7il' 111..L CROSSllfOS (1' PIPllllts Oii CAii.ES. 1tOWV.HO CNGl~O No. 30, & VAQUIL!AS STATE G.U. No. 5) flEtO OAlE BOOK PAC[{• DRAWN SY: s.1.1.1.
NID SlllV£nNQ CO., I«:. /.SSUllE!i NO ~E$PONSll!IUJY TO LDC.\TE PIPD..l;t O!t Cla£ CltOSSH:S. H/A CHECKED SY: J.S.
""
N/A
~~r:s:HG%~~~~=-W~Rfct~CR.ll rtE O'llNERHP 01t 640.00 ACRES JOB No. 221J1.<4-1J
COPTRICHT HOWIJ,NO OfQllEDIUfCl NIO SUIMYWQ CO, !NC. 2013C
WEBB COUNTY, TEXAS SHEET: 2 Of 2
lt\How.AllD\'IUll\ltWll; OIPARTMlNl\Job<\201Nl1lL4-ll\211lL<-1ldlog. l/!,l70l~ 105.!.WJ.U. Mobo POI'
HOWLAND
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-5"
FIELD NOTES
FOR
CONOCOPHILLIPS COMPANY
V AQUllLAS RANCH LEASE 199129-001
RETAINED TRACT 5
(VAQUllLAS RANCH CO., LTD. WELLS No. 3, No. 14,
No. 41, No. 45, & No. 69,)
640.00 ACRES
A TRACT OF LAND CONTAJNING 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 865, H.
& G.N. R.R. CO., Abstract 1438, Webb County, Texas, and being more particularly
described as follows:
BEGINNING at a point under an existing fence line which bears N 24°04'13" W, a
distance of2,161.34 feet, from the Vaquillas Ranch Co., LTD. No. 69 Well;
THENCE, N 89'30'43" E, partially along an existing fence line, a distance of 5,303.50
FEET, to a point for the Northeast comer hereof;
THENCE, S 00°28'34" E, a distance ofl,802.66 FEET, to a point for a deflection right;
THENCE, S 00°09'23" E, a distance of2,489.65 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°35'00" W, a distance ofS,256.20 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°14'17" W, a distance of3,677.21 FEET, to a point for an interior
corner hereof;
THENCE, S 89°45'43" W, a distance of 44.35 FEET, to a found l" pipe at fence
corner, for an exterior corner hereof;
THENCE, N 00°37 150" W, along an existing fence line, a distance of 1,608.36 FEET,
to the POINT OF BEGINNING, containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET! OF2
H:\HOWLAND\SURVEYING DEPAR1MENJ\JabsUO 13U213 J.5-13U2131.5-13.doc
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7615 N. Bartlett Avenue P.O. Box 451128 (78045) ! Laredo, 1X 78041 P. 956.722.4411 F. 956.722.5414
T6PE Firm Registration No. F-4097 TBPLS Firm Registration No. 100464-00
EXHIBIT "A-5"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 1N99129-001 - RETAINED "TRACT 5
(VAQUIUAS RANCH CO., LTD. WELLS No. 3, No. 14 No. 41, No. 45, & No. 69)
640.00 ACRES
WEBB COUNlY, TEXAS
SURVEY 2238
P.O. BODE
I
I
SURVEY 866
FRANCISCO CONTRERAS
ABSTRACT 2065
ABSTRACT 3016 I
------
SURVEY 2336
_, __ , __ ,_
J.E. ANDERSON
ABSTRACT 3183
\
----
t
... --- -- -------- N 89"30'-43• E "" S,303..50'
~ \\~.,o ! {Cl
"'
j§ a:
"'., ~
~i .: "' .... "'
I
\"";
VAQUILLAS RANCH
CO. LTD. No. 45 ~ ~z
!! ,.,
\V,
\i:.\1.
i~tb.~ Till'l.Sfrn.~No.I~
7e151t._/'o._ t.a..do,lX.78001 P.115a.722Ml1 - - ' - - = ftHCE UHE <4 11 27-13
www.howlandcompankls.com - - - - - - - •TIES
" .. '" SURVEY UHE
WARNING: SI.SIS OF BEARING: C.P.S. Tx. South :Zone, N.A.O. 27.
THIS l'Ull llAY HOT $HOW ALL alOSSf'ICS Of PIPQJN£S OR CA8.tS. IKN\NICI E>IGll~
AAD ~I: en.. lie. ~ NCI l!C'J'CINSlllUIY TO l.CICA.TE Pf'UK Cit eoa£ D!OSSINCS.
flEW DATE
,,,
''°' ,,,
PAGEi~ DRAWN BY: LAF./S.l.r.I.
NII Cl.AIW IS HEN£Erl' IMO( R£lW!lllH(l i;:mR£HT OR ,oCTU.1,1. SUIU'...::C/l.IHERN. FU OWNERSlfP OR
l.£SSOR.. 1lltS OR>.11'111: WDE DCClilSMl.Y Rl!I CONOCOl'HUJPS IXlMP>HI'. "" CHECKED BY: J.S.
JOB No. 221.ll.5-13
COP'l'RlCHT HOWl.AACI ENl:INEE!tliG N«l SlJIMW«O CO •• N;. 20130
SHEET: 2 or 2
HOWUJ\N[l)
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-6"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 6
(VAQUILLAS RANCH CO., LTD. WELLS No. 31, No. 56 &
W.R. CARR, ET AL No. 1)
620.58 ACRES
A TRACT OF LAND CONTAINING 620.58 ACRES, more or less, being out of the Vaquillas
Ranch Lease 199129-001, 26,622.79 Acres (Called1 situated in Survey 1635, T.C. R.R. CO.,
Abstract 1797; Survey 865, H. & G.N. R.R. CO., Abstract 1438; and Survey 467, A.B. & M.,
Abstract 799, Webb County, Texas, and being more particularly described as follows:
BEGINNING at a point which bears N 67°46'35" W, a distance of 4,196.87 feet, from the
Vaquillas Ranch Co., LTD. No. 31 Well;
THENCE, N 88°55'14" E, a distance ofl,040.09 FEET, to a point under an existing fence line,
for a deflection right;
THENCE, N 89051'04" E, a distance of3,989.57 FEET, to a found I" pipe at fence comer, for
a deflection left;
THENCE, N 89°45'43" E, a distance of 44.35 FEET, to a point for the Northeast comer hereof;
THENCE, S 00°14'17" E, a distance of3,677.21 FEET, to a point for an exterior comer hereof;
THENCE, S 89°35'00" W, a distance of 44.35 FEET, to a point for a deflection right;
THENCE, S 89054'09" W, a distance ofl,767.82 FEET, to a point for an interior comer hereof;
THENCE, S 00°17'52" E, a distance of3,432.25 FEET, to a p_oint for a deflection left;
THENCE, S 00°38'54" E, a distance of 54.14 FEET, to a point for the Southeast comer hereof;
THENCE, N 89°49'18" W, a distance of2,249.93 FEET, to a point for the Southwest corner
hereof;
THENCE, N 00°10'41" E, a distance of54.13 FEET, to a point for a deflection left;
THENCE, N 00°21'54" W, a distance of 1,361.31 FEET, to a found fence corner post, for a
deflection left;
THENCE, N 00°30'20" W, aJong an existing fence line, a distance of 1,631.92 FEET, to a point
for a deflection right;
THENCE, N 00°28'47" W, continuing along said existing fence line, a distance of 882.77
FEET, to a point for a deflection left;
THENCE, N 00°29'28" W, continuing along said existing fence line, a distance of 1,092.72
FEET1 to a point for an interior corner hereof;
SHEET! OF3
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box451128 (78045) ; Laredo, lX 78041 P. 956.722.4411 F. 956.722.5414
TBPE Finn Registration No. F-4097 , TBPL5 Firm Registration No. 100464-00
Ho.aAli[] /~ [fc..~l~':c,;;~-;
'WW:f~~J:d'\~JP:-:-:-::~·
ENGINEERING AND SURVEYING CO.
Continuation
THENCE, S 88°55'14,, W, a distance of 1,965.93 FEET, to a point for an exterior comer
hereof;
THENCE, N 01°04'46" W, a distance of2,125.56 FEET, to the POINT OF BEGINNING,
containing 620.58 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET2 OF3
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7615 N. Bartlett Avenue P.O. Box 451128 {78045) Laredo, 1)( 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 i TBPLS Firm Registration No. 100464-00
EXHIBIT "A-6"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 6
(VAQUIUAS RANCH CO., LID. WELLS No. 31, No. 56 &
W.R. CARR, ET AL No. 1)
620.58 ACRES
WEBB COUNlY, TEXAS
I
SURVEY 1838'
FRANK BARRETT '
ABSTRACT 2137 '
~
I
• I SURVEY 2336
J.E. ANDERSON
~ I '
'
ABSTRACT 3183
SEE
VAQUlll..AS
RANCH
CO. LTD.
No. 69
(SHL)
W.R. CARR.
ET Al No. l
-¢-
CONOCOPHlLUPS COMPANY
SURVEY 1632 VAQUIUAS RANCH LEASE 199129-001
FRANK BARRETT 26,622. 79 ACRES (CAUED)
ABSTRACT 2140 RET~ED 820.SS ACRE UNrT'
o---------.(J)o-
w ----w--.
s B9"54'oo• 5 89'M'oo•
1,767.82' 44.35'
z
SURVEY 1683
I
DETAIL:
N.T.S.
N 89"4&'43. E
i r44.30' ..'" ' ~.
ill
C.C.S.D. & R.G.N.G. R.R.
ABSTRACT 1115
co.
il "'I
ii~ ~VAOUILLAS RANCH
Found 1") S ..:1 l c~~. \~·
Plpoc!~~" z 1'
"'
~•--•--•--•--•--X-y
I
µ
\Found Fenca
Com--::-:;::~:::::;-;::""."."'::'"::~~-~"- S 00'38'54" E
54.13' N 89"49'18" w ... 2,249.93" I 154.14'
VAOUILLAS RANCH
CO. LTO.
A. B. & M. No. JJ ST (BHL)
ABSTRTACT 799 -¢- '
GRAPHIC
VAOUJLLAS RANCH
CO. LTD. No. 71 VAQUIL~!
!.00
~ --- •J-'
~ 500
I loch • 1ooan.
T c~Cr~.
No. SJ I•
-¢-
VAOUlLLAS RANCH
CO. LTD.
No. 5
LEGEND Rnl1lon
HOWL.A~~ = M--17-13
0 HOR!ZOKTAL WEU
SURFACC L.OCATIOH
ENGINEERING AND SURVEYING CD.
-¢- • WW. 06-06-1J
08-14-13
Tl!PE Fhn llo;IMdoo HO>. ~1 T8P\..S Fhn ~ ...,_ IOOolM«I -~,--: ~1.R(Ji£
7~1'N.llallldllvm>110 Ls-._TX.7111M1 P.111:16..72:2.4411 10-18-tJ
www.howlandcompanles.com - - - - - - - = TIES
.. ,. = SURV£Y Ult( 11-27-1J
WARNING: BASIS Or BOOING: G.P.S. Tx. South Zone, NAD.-27.
n-=> FU.l KAI'" NOT SllOllf JU o:ICJSSlj(;S Of' PlPEIJ'IES 00 eoa.tS.. ltl:l'fl'V'ltl DIC»l(£JllNc; FlUD DATE
"o' PAGE ~l DRAWN BY: LAF./S.1.ld.
"'' "'' CHECKED SY: J.S.
JOB No. 221Jl.6-IJ
SHEET: J or J
Ho-1Q1~ ilir S~-~[f~;
'WW~t£-::J.Li~r.~ '-'.21 1 ~;----··/
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-7"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 7
(VAQUILLAS RANCH CO., LTD. WELLS No. 5, No. 8,
No. 23, No. 25, No. 33 ST, & No. 64)
639.48 ACRES
A TRACT OF LAND CONTAINING 639.48 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1683,
C.C.S.D. & R.G.N.G. RR. CO., Abstract 1115, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 09°35'49" W, a distance of 1,417.68 feet, from
the Vaquillas Ranch Co., LTD. No. 64 Well;
THENCE, N 89°54'09" E, a distance ofl,767.82 FEET, to a point fora deflection left;
THENCE, N 89°35'00" E, a distance of3,454.97 FEET, to a point for the Northeast
corner hereof;
THENCE, S 00'02'16" W, a distance of 4,514.84 FEET, to a point for a deflection left;
THENCE, S 00°56'49" E, a distance of845.79 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°46'53" W, a distance of 2,479.20 FEET, to a point for a deflection
right;
THENCE, S 89°59'21" W, a distance of2,715.08 FEET, to a point for the So_uthwest
comer hereof;
THENCE, N 00°38'54" W, a distance of 1,910.27 FEET, to a point for a deflection
right;
THENCE, N 00°17'52" W, a distance of3,432.25 FEET, to the POINT OF
BEGINNING, containing 639.48 acres of land, more or Jess.
Basis of Bearing: G.P.S., TIC South Zone, NAD-27
. ·;~.-
SHEET 1 OF2
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7615 N, Bartlett Avenue 1 P.O. Box451128 (78045) ; Laredo, 1X78041 P. 956.722.4411 I F. 956.722.5414
TBPE Finn Registration No. F-4097 TBPLS Firm Registration No.100464-00
EXHIBIT "A-7"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 7
(VAQUILLAS RANCH co.,
LTD. WEllS No. 5, No. 8, No. 23,
No. 25, No. 33 ST, & No. 64)
639.48 ACRES
WEBB COUNTY, TEXAS
I
-¢-VAQUILLAS RANCH Ji
CO. LTD. No . .31 ' r.:
' ;:1
I •
SURVEY 1635 I' j~'f!i
J
T.C. R.R. co. SURVEY 665
ABSTRACT 1797 • H. & G.N. R.R. co. .
I' ABSTRACT 1438
VAQUIUAS RANCH
POnft OP;) 1
llllllNlllllC CO. LTD. No. 3-¢-
N 89'54'09• E ,.. 1,787.82' I N 89'35'00- E ,.. 3,454.97'
----
N 09'35'49" W~ ''I lII
1,417.68' I I
\
.-
I
lia
lJi!!. SURVEY 1683
C.C.S.D. & R.G.N.G. R.R. co.
!-e;,,,.
II
II ABSTRACT 1115
~ VAQUILLAS RANCH WEBB COUNTY, TEXAS
CO. LTD. No. 64
"
' VAOUILLAS RANCH-¢-
CO. LTD. No. 2J !
~ VAQUILlAS RANCH ~ 8::.:: "'
:g
CO. LTO. No. JJ ST
§" ' ""'"'
z
O (SHL)
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
26,622.79 ACRES {CALLED)
."
m
l;
-o
~ §1t>
!5,;. 01b;
RETNNED 639.48 ACRE UNIT
s "' "' "'<
"
--------!:; VAOUILlAS RANCH CO.~
LTD. No. JJ ST (BHL)
s VAOUILLAS
C~N&~.-¢-
C>
No. 53
' -¢-
ii;" :------·
VAOUILlAS RANCH
VAOUILLAS RANCP-
CO. LID. No. 5
-¢- CO. LTD. No. 8 ~
VAOUILLAS RANCH
SURVEY 467
A. B. & M. ~ CO. LTD. No. 25 !:DI
~I":
ABSTRTACT 799 z ~~
S 89"9'21· W ,.. 2.71S.08' I s 89"48'53. w- 2.479.20' "
• ' •
• SURVEY 1684 ' ' ~
I• I' D. B. GRACY
ABSTRACT 2910 I ~oco
- ...
"'"'-
>-a:; u
' • SURVEY 1684 •' [::!"«
1----------- ___J G.T. BLACK
ABSTRACT 2698 I• "'-~
p~Cl'l
., .. <;;]
GRAPHIC SCALE
'
~
--
)or•
~~
•J-'
( IN ft:ET)
I lnc:h • lOOOR.
·~
I =I
I•
LEGEND R•vlston Dola
HOWLANf3
ENGINEERING ANO SURVEYING CO.
0
-¢-
• UNIT UNE
= HORIZONTAL waL
SURf'AC( l.OCA.TION
o~
'
' 04-06-13
0~17-13
06-06-13
•'
TI!PE Fm Rtp:lr_, No. F-«m TBPL.S Arm~ Ne. 100ol&4-0CI _ , _ =FDIC£Ul'lt:
tr.nN.IW'6ti;A-.o ......,._ lX. J'e.9l£S- HCN!J.110 DIJ!S>F OR
LLSS0R. l1ll:5 DRA1nHC w«: fXCl.USMl.Y RIR IUIUNCTON ~ 0A<: CO. IP. '" CHECKED BY; J.s.
JOB No. 22131.7
COP'tRICl!T \\O'Wl\H78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 I TBPLS Firm Registration No. 100464-00
EXHIBIT "A-8"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 N RETAINED lRACT 8
{VAQUIUAS RANCH CO., LTD. waL.S No. 29 ST, No. 53,
No. 61, No. 71, AND STATE G.U. No. 1-R &: No. 15)
640.00 ACRES
WEBB COUN1Y, TEXAS
SURVEY 1632
FRANK BARREIT
'I' '
'
-:.=.._""'X" .; ~x
ABSTRACT 2140
_ _ _ , _ _ , __ , __ , _ _ , __ , Tii I
SURVEY 1635 ' 0
T.C. R.R. CO. ' VAOUIUAS
i~-.~.~.~. . .".
RANCH
ABSTRACT 1797
I' No. .33 ST
(SHL)
' '
~.. ~.,~ -~2.49"'. .
0
L...
-...
.....ol'J
E -· '.072.''' • -
......
s OO'to'42• w
I
I
..o:: .... .;t""""-
u
........................... !! ., • 54.13' I VAQU!LI..AS RANCH ;.,
71
--... ... "'
"'u~
"' VAQUIUAS RANCH-O- RANCH en
~m
CO. LTD. No. 29 ST STATE G.U.
ci (BHL) No. 15 >--· .. --•••
{BHL) o
§ 0 A
V 1&1 "' -
co>oci
z CONOCOPHILLIPS COMPANY -¢- VAOUILLAS «>UN
~~t;
VAQUIUAS RANCH LEASE 199129-001 VAQUILLAS RANCH RANCH
26,622.79 ACRES (CALLED)
~"'.~
CO. LTD. No. 61 STATE G.U.
RETAINED &40.00 ACRE UNIT No. 15
(SHL) "!De-<
:::::> t:i 00
"' ~ "'
·------ SURVEY 46?
A.B. & M. >---------
ABSTRACT 799
WEBB COUNTY. TEXAS .,
1o
t
'
~
z
VAOU!LLAS RANCH-¢-
STATE C.U. No. 1-R
I
"'
-:Je..
>-"' u
"'"'
"'"'"'"'
M'N«. JOB No. 2ZU1.6-1.l
COl'l'RIQfl llOWINIO El!C1!£ERf!G Nil SUIM.YNl 00., J'IC. 2013CI
SHEET: 2 OF 2
HOWLA~~D
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-9"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 9
(VAQUILLAS RANCH CO., LTD. WELLS No. 39, No. 40, & No. 46)
635.23 ACRES
A TRACT OF LAND CONTAINING 635.23 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1633,
G.C. & S.F. R.R. CO., Abstract 1323; and Survey 467, A.B. & M., Abstract 799,Webb
County, Texas, and being more particularly described as foUows:
BEGINNING at a point which bears N 66°46'35" W, a distance of 1,328.20 feet, from
the Vaquillas Ranch Co., LTD. No. 40 Well;
THENCE, N 89°30'45" E, a distance of2,492.56 FEET, to a found fence corner post,
for a deflection right;
THENCE, N 89°32'27" E, along an existing fence line, a distance ofl,572.15 FEET, to
a point for a deflection left;
THENCE, N 89°29'25" E, continuing along said existing fence line, a distance of
2,016.77 FEET, to a point for the Northeast comer hereof;
THENCE, S 00°33'08" W, a distance of 1,348.09 FEET, to a point to an exterior corner
hereof;
THENCE, S 89°34'30" W, a distance of80.70 FEET, to a point to an interior comer
hereof;
THENCE, S 00°19'36" W, a distance of 3,274.41 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°52'00" W, a distance of 5,977.93 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°06'46" E, a distance of4,585.15 FEET, to the POINT OF
BEGINNING, containing 635.23 acres of land, more or less.
Basis of Bearing: G.P .S., TX. South Zone, NAD-27
SHEET I OF2
H:\HOWLAND\SURVEYmG DEPARi'?'>fENNoln\2013\22131. 9-13\22131.9-13.doc
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7615 N. Bartlett Avenue 1 P.O. Box 451128 (78045) i Laredo, lX 78041P.956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 TBPLS Firm Registration No. 100464-00
EXHIBIT "A-9"
CONOCOPHILLIPS COMPANY
VAQUILU\S RANCH LEASE 199129-001 N RETAINED TRACT 9
(VAQUIUAS RANCH CO., LTD, WELLS No. 39, No. 4-0, & No. 46)
635.23 ACRES
WEBS COUNlY, TEXAS
:'·I .,
-----, SURVEY 1631
G.C. & S.F. R.R. CO. I! I j
:1
A
ABSTRACT 1317
SURVEY 1632
'' 1·.l FRANK BARRE'IT
ABSTRACT 2140
I ,I
I i
.
H 89"32'2r E N 89'29'25" E
't;::::::.:~~-;....::"°:':46~::.;:~N:::::..:.. ~.?-""':.:-..:::::::::;i;:::::.:•~•~'=':"':2.::;.;l~;O;•:.::::o.:•:.:•..;:::::..;:•~2:.;0;1;•·:"::;.;'-:.:•..:::::::}-
.
t
- ........ }{
.... ~fi't6,
1.J2;;~· II'
l·
Ira
, _ _ _ ,_
-<'o"'l ... .._, I
~---,-.222'----=¢-VAQUILLAS RANCH SURVEY 1633
CO. LTD. No. 40 G.C. & S.F. R.R. CO.
ABSTRACT 1323
WEBB COUNTY, TEXAS
-----
"'
-¢-VAQUJLI.AS RANCH s 89".34'30. w
CO. l TO. No. 39 60.70'
CONOCOPHILLIPS COMPANY
VAOUILLAS RANCH LEASE 199129-001
26.622.79 ACRES (CALLEO)
RETAINED 635.23 ACRE UNrr
-¢-vAaUlllAS RANCH
CO. LTD. No. 46
I'----
~ "'
"'
..,.,.,...
,['-
0 w ...
~"'~
> ....
"' " ,.....
s 89"52'00" 5,9nSJ'
[3~:;:
' . 1-.00
Til1,~Botto!IA..-.. i.a.-,T.ll.1Dl1 P.115&.n2M11
FnlCE LINE
10-18-13
www.howlondc:ornpanles.com n"
SlJRVtY UHr
~ BASIS OF BEARlNG: G.P.S. Tx. South Zona, NAD.-27.
11WS Pt.Ill ""'T H!ll' StEll MJ.. Cl!OSSllC:S Df PIP£l.JNCS OR C'8.£S. HOllll.JiliO EliGll LDC.I.IE ~ ~ c:oa.I: CROSSllfGS.
~ni:s~~~~~~fll~O>I
FlELO DATE
"
'""
,,. . DRAWN BY: LAFJS.l.M.
CHECKED BY: J.S.
CCIP'lll!tl'1" "°"""""° ~ AHO SUi\01tlG CO., t-H;, 20130
JOB No.
SHEET:
22131.9 IJ
2 OF 2
HOWlMANlt~
ENGINEERING AND SURVEYING CO.
EXIDBIT "A-10"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 10
(VAQUILLAS RANCH CO., LTD. WELLS No. 27, No. 43,
No. 44, No. 59, No. 73, No. 74 & VAQUILLAS RANCH A-2 No. 6)
640.00 ACRES
A TRACT OF LAND CONTAlNING 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 468,
N.B. Gossett, Abstract 2255; North V, of Survey 166, A.C. Gaeth, Abstract 3142; and
Survey 1634, N.B. Gossett, Abstract 2252, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 29°17'05" E, a distance of2,149.76 feet, from
the Vaquillas Ranch Co. Ltd. No. 44 Well;
THENCE, S 00'31'13" E, a distance of3,087.94 FEET, to a point for the Southeast
corner hereof;
THENCE, WEST, a distance of7,909.49 FEET, to a point for the Southwest comer
hereof;
THENCE, N 00°00'03" W, a distance of 1,852.04 FEET, to a point for an interior
comer hereof;
THENCE, S 89°43'42" W, a distance of3,039.93 FEET, to a point for an exterior
comer hereof;
THENCE, N 00°12'49" W, a distance of 1,198.42 FEET, to a point for the Northwest
corner hereof;
THENCE, N 89°43'43" E, a distance of 10,925.96 FEET, to the POINT OF
BEGINNING, containing 640.00 acres of land, more or less.
:f.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
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7615 N. Bartlett Avenue i P.O. Box451128 (78045} I Laredo, TX78041 P. 956.722.4411 F. 956.722.5414
TBPE Finn Registration No. F-4097 t TBPLS Firm Registration No. 100464-00
.... ___ .. .. .. .. .. ..
1
l• -¢- •
SURVEY 1684
~
G.T. BLACK
VAOUILlAS RANCH
CO. LTD. No. 20
• ABSTRACT 2898
SURVEY 1834
N.B. GOSSETT
•
I• VAQUILLAS
RANCH CO.
VAQUILLAS
RANCH CO.
I•
<:~P]
LTD. No. 11
ABSTRACT 2252 LTD. No. JO
-¢- VAQUIUAS RANCH-¢- •
-¢-
~ •
I
STATE G.U. No. 5 \BIGllOOllG
j N 8V43'43" E ... 10,925.96' I j
• I I
" •• '
• I
~I
''' ~/ '-··--··-
~i CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
I• VAQUlLLAS RANCH
CO. LTD. No. 73
'''
"""':,'
ll:: 26,622.79 ACRES (CALLED) -¢- "
~'
z RETA!~ &40.00 Jal£.. UNrT
··-··-··-··-i
• -¢- VAOUILLAS
CO. LTD. No. 59
RANCH bl
~·
~·
'
4/
•
.~/
f> I
I
..
~ VAQUILLAS
-¢-
'''
VAQUILLAS RANCH
s 89""43'•2• w ,.. 3,039.93' ~I RANCH CO.
CO. LTD. No. 43-¢- I
~
i.'
I
LTD. No. 24
I
SURVEY 468 '
I I
0
NORTH 1/2
SURVEY 1868
A.C. GOETH
ABSTRACT 3142
II
I
-¢-vAQUJLLAS RANCH
CO. LTD. No. 74
N.B. GOSSETT
ABSTRTACT 2255
WEBB COUNTY, TEXAS VAQUILlAS RANCH
CO. LTD. No. 44
'"
-¢-----!,Q.Sf ___ '
;"'
;;;
_,,,
;
ro~~
u,..
.f.D
>- . t;
SURVEY 1665
~ I -¢-VAQUlllAS RANCH
ll [;'"'""
,,,"'[::
8 VAQUILLAS RANCH CO. LTD. No. 27 "'
-¢-
C.C.S.D. & R.G.N.G. R.R. CO.
ABSTRACT 1124
ll
z
A-2 No. 6
I
I
I '"'""
"' u .';';]
..;
I '-r VAQUILLAS RANCH WEST ,... 7.909.49' -¢-
• CO LTD No 32 -¢- I VAQUILLAS
I VAQUILLAS RANCH
I I RANCH CO
L .. ---------··--·. - .. _ :o~ :_": _'_j_t~o- ~'- ..
I
I
500
Po;;•.- -~~
GRAPHIC SCALE
·-I
,_
I
I
•
(ti rt:ET)
I Inc~ • 1000fl
I
EXHIBIT "A-10" LEGEND Ravl•!on
"'"
HOWL.AND
ENGINEERING AND SURVEYING CO.
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001
0
-¢-
= HORIIONTl.1. W£U
•WW.
SURFAtr tOCAOON
'
' 04-1.:l:-1J
05-17-\J
00-00-13
•'
TBPEFkm~No.F-oCOV'I lBPLllFm.~IC>.1CXMS4-0:l • UNIT UH[
_ , _ . , rEHCE UH£
78'5N.llullollA...,. u..da,TX.76041 P.~r.,7Z2M11
10-U~-IJ
www.hoWlandeompanles.com RETAINED TRACT 10 - - - - - - - = TICS
11-27-13
WARNING· BASIS OF BEAAING: G.P.S. T1t. S1 F. 956.722.5414
TBPE Arm Registration No. F-4097 ; TBPl5 Firm Registration No. 1004&4-00
EXHIBIT "A-11"
CONOCOPHILLIPS COMPANY
VAQUlli.AS RANCH LEASE 199129-001 N RETAINED TRACT 11
(VAQUlli.AS RANCH CO., LID. WELLS No. 7, No. 12, No. 18, No. 22,
No. 24, No. 35, No. 51, No. 65, No. 67, & No. 68)
640.00 ACRES
WEBS COUNTY. TEXAS
-¢-
SURVEY 1684 VAQUlllAS
G.T. BLACK RANCH
A-1 No . .3
ABSTRACT 2698
N 6714'28' W
m:os---- - - - • .. - .... - .... - - - - - - - VAQUlll.AS
N 89"24'.W- E ,.. S.260.70° RANCH
... ___
-- ,, '!§!
-~·--".:-:¢- VAOUILLAS
RANCH CO. -¢-
VAOUILLAS
RANCH CO.
VAQUILLAS
RANCH
A-1 No. 7
-¢-
A-1 No. 214
¢-
(BHL}
VAQUJUAS
LTD. No. 24 LTD. No. 7 RANCH
VAOU!LLAS A-1 No. 214
SURVEY 468 -¢- RANCH CO. (SHL)
LTD. No. 67
A.B. & M. SURVEY 1698
ABSTRACT 2255 G.C. & S.F. R.R. CO.
ABSTRACT 2418
CONOCOPHILLIPS COMPANY
VAQUlLLAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED) VAOUILLAS EAST ,... 1,818.67"
RETAHD 540.00 ACRE UNIT -¢- RANCH CO.
LTO. No. 12
SURVEY 1691
z VAQUILLAS G.C. & S.F. R.R. CO.
-¢- RANCH CO.
VAOUILLAS
ABSTRACT 1287
LTD. No. 51
-¢- RANCH CO. WEBB COUNTY, TEXAS
LTD. No. 18
VAOUILLAS
RANCH CO.
LTD. No. 65
. Q(SHL)
WEST - 2.743.83" VAOUILlAS -¢- · VAOUILLAS
NORTH 1/2 SURVEY 1666 ~--·::! RANCH CO.
LTD. No. 65
-¢- RANCH CO.
LTD. No. 35
----- ------- --- --.
A.C. GOETH
(BHL)
ABSTRACT 3142
VAOUlllAS ~ VAQUILLAS _n_
RANCH CO. >i\..j RANCH co.¥
SOUTH 1/2 LTD. No. 68 . VAOUILLAS LTD. No. 22
SURVEY 1666 (BHL) RANCH CO.
LTD. No. 68
N.B. GOSSETT (SHL)
ABSTRACT 2253
--- --- --- --- --~===---==:::~~~.----~i-.. ...., SOUTH ,.. &>.64'
WEST ,... 4,066.67
s 89"32'20• w
249.85'
SURVEY 1678
C.C.S.D. & R.G.N.G. R.R. CO.
ABSTRACT 2495
--------
GRAPHIC SCALE
1000 2000
~~~I
(~FEET)
1 one~~ IOOOF\.
U:GEMD Ruisi on Dot•
HOWLAND
ENGINEERING AND SURVEYING CO.
TBP£ firm f!ookn!tln No.""4Wl' TBl'L!I ~ 118'1*"°"' ..... 1(l(ll64-00
_
0
-¢-
_.._ _ "
__ , _ = FE!tCt
"' HORIZONTAL WELL
. ""'
SIJ!IFAC[ LOCATION
UNIT UHt
UNt
2
05-17-13
060613
08-14-13
76\SH.- ...VOBJO ~.TJC.lflCM• P.lloSll.722.4411
- - - - - - - ,. TJES 10--18 13
www.howlandcomp&oles.com
- • • - •SURVE'l'UN£ 11-27-13
~ a.\SIS OF BE.ARING: G.P.S. Tx. South Zono, N.A.D.-27.
FIELD DATE
,.
PAGE a
"''
lHS Pl.AT MAY tlOT SHOii' >LL CRQ$$lllG$ Of' Pl>£IJl6 OR C>.l!U3. HCMV.H0 ~ DRAWN BY: U..F./S.1.1.4.
NID Sl..1IM:Tlle CO.. M:. ASSUt45 NO l!£SPClt78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 TBPl5 Finn Registration No. 100464-00
---------------------------------
I
I I '
'
I'
A VAQUIL.1-'S VAQUILLAS
¥RANCH CO. -¢- RANCH CO. SURVEY 1691
LTD. No. 74 LTO. No. 44
G.C. & S.F. R.R. CO.
~~
VAQUILLAS
-¢- RANCH
LTD. No. 27
CO.
ABSTRACT 1267 VAQUILLAS
RANCH CO.
LTD. No. 12
-¢- JI
~~
::z:
I
I! '¢' VAQUILlAS
£AST ,.. 7,009.-49'
I VAllUILLJ>S ~­ ~ .,-g
~
.,. -¢-
YAQUI LL.AS
RANCH CO.
VAQUILLAS
',, L
LTD. No. 51
.......
................ 1
RANCH CO
LTD. No. 32_
I
: SURVEY 468
RANCH CO.y
LTD. No. 2
-¢- RANCH CO.
N.B. GOSSETT ~:Ii LTD. No. 18 VAOUILLAS
I !!~ RANCH CO.
i!; '',,, : ABSTRACT 2255
EAST ... 2,74J.83'
LTD. No. 65
2 '-.. N
',!.S·~· • - - - · · --··--·~--· · - - · • - - · · - - ••
I "' {SHL)
~ -,_;.,. "·
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• I
~I
I VAQUILlAS -¢- . 0
l ................... .s VAOUILLAS "!.: NORTH 1/2 SURVEY 1666 1
RANCH CO.
65
~ .... - .... -- "" -- .... - . .::~~ ? A-~~~~ ~:
1 LTD. No.
8
68 A.C. GOETH, ABSTRACT 3142
----,:-- ---- -:---- - -- ,..,v;a-u1;:;::;s • --- -- --- - -- -- -- - - --- -
'' yRAN~
a1
8
~
(BHL)
VAQUILLAS
RANCH CO.
LTD. No. sa.n.,,__
~ ........ iI A-2 No. 4 SOUTH 1/2 SURVEY 1666 l (8HL) "'l"\J
VAQUILLAS
z 4,948' ................... 1 VAOUJLLAS CONOCOPH1U1PS COMPANY N.B. GOSSETT ~ • RANCH CO.
--------------------------------------------------V;A- 2RANCH VAQUJLLAS RANCH LEASE 199129-001 ABSTRACT 2253 • LTO. No. ea
r· __.
No. 38 26,622.79 ACRES (CALLED) WEBB COUNTY, TEXAS {SHL)
RETNNED 640.00 ACRE UNT
! I ......·20· w - to...,.... ! 'I.-.-·-
1 SURVEY 1678
SURVEY 1667 I C.C.S.D. & R.G.N.G.
R.R. CO.
GRAPHIC SCALE
C.C.S.D. & R.G.N.G. R.R. CO.
ABSTRACT 1125
SURVEY 1677
C.C.S.D. & R.G.N.G. R.R. CO. I ABSTRACT 2495
~
o L:.U 1j
J.·.·---- { IH tUT}
2000
I '
ABSTRACT 1130
'
'
I
1 noh - nx19n I
LEGEND R1vl1lon Dalo
EXHIBIT "A-12"
HOWLAND ENGINEERING ANO SUR\ISYINQ CO. CONOCOPHILLIPS COMPANY
0
-¢-
• HORIZOHTAL 'flEl.L
SURrACE LOCATION
• WELl
• UNIT UNE
'
'
04-11-\J
05-17-13
oe-oe-u
•'
Tll!'fRTTl~l!o.F-4081 TBPLS Rom~ No.100464-00
76151<1..e...:IMIA- Llt.:lo. lX.18041 P.9:i&.m..u11 VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 12 - - >- - • rEHCE UHE
10-18-13
www.hOINlandeompanlM.com - - - - - - - • 11£S
(VAQUIUAS RANCH A-2 WEI.LS No. 4, No. JB, No. 68 & - • • - ,. SUll\ICY UHE 11-27-13
WARNING: BASIS Of B&.RINC: C.P.S. T1. South Zone, N.A.0.-27.
nn PLAT MAY r«IT SHC# Ju. Cf!OSS.fjll! or c.oau::s.
f«IW'lNCI OCH~
Plf'EL.IHl:5 Oft
VAQUIUAS RANCH CO. LlD. No. 2, No. 32) FIELD DATE I BOOK I PACE(t) II DRAWN BY;
'
L.A.r./S.l.M.
HID SURY£'11t1G CO~ lllC. AS'SIJll£S HO RtSPONSIMITT TO LOCATt PIPWNE Oft CAEl.E CllOSSNGS.. 640.00 ACRES N/A I N/A I N/A II CHECKED SY: J.S.
~nt:HO~~Ml."J'TJ.r~WPS~ IU OWICJtSHI' OR WEBB COUNTY. TEXAS I I 11 JOB No. 22131-:13-13
COl'TIUGNT HOWl»IO OIDIN1'.JJUN(I ANO Sl/INt'l'NJ CO., H:, 2013C I SHEET: 2 OF 2
H.\llOWWI~ OCP~U\221JUJ..ll\Ul.ll..1J..ll.<1vo9. IJIJl0)1~ U.~20IN.l.-POF
EXHIBIT "A-13"
FIELD NOTES
FOR
CONOCOPRUJJPS COMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 13
(VAQUILLAS RANCH A-1 WELLS No. 3, No. 7, No. 33, No. 144,
No. 156, No. 163, No. 214)
636.53 ACRES
A TRACT OF LAND CONTAINING 636.53 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1696,
P.B. Reynolds, Abstract 2418; and Survey 1695, G.C. & S.F. R.R. CO., Abstract 1268,
Webb County, Texas, and being more particularly described as follows:
BEGINNING at a point which bears N 53°13'51" W, a distance of 1,137.24 feet, from
the Vaquillas Ranch A- 1 No. 3 Well;
THENCE, N 89°19'22" E, a distance of 6,735.31 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°58'29" E, a distance of 4,150.50 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°19'59" W, a distance ofll.75 FEET, to a point for a deflection right;
THENCE, N 89°52'06" W, a distance of 4,950.94 FEET, to a point for a deflection left;
THENCE, WEST, a distance of 1,816.67 FEET, to a point for the Southwest comer
hereof;
THENCE, N 00°22'59" W, a distance ofl,911.15 FEET, to a point for a deflection
right;
THENCE, N 00°21'20" W, a distance of2,147.98 FEET, to the POINT OF
BEGINNING and containing 636.53 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYING DE>ARTMEN1\JobsU013U2131.14-13U2131.14-13.doc
www.howlandcompanies.com
7615 N. S78041 P. 956.722.4411 F. 956.722.5414
TBPE firm Registration No. F-4097 i TBPLS Firm Registration No. 100464-00
EXHIBIT "A-13"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 ~ RETAINED lRACT 13
(VAQUIUAS RANCH A-1 WEU.S No. 3, No. 7, No. 33, No. 144,
No. 156, No. 163, No. 214)
636.53 ACRES
WEBB COUNTY, TEXAS
·;
h"
I·. SURVEY 1697
T.M. R.R. CO .
J.11
.q. ~ r:P0t;. OJ' ABSTRACT 1813
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C\l '-BBGINHING
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,..: ·U ~ Of PPEl.JNES QI. coaIS. ltC7lilHIO ~
NID SIJl!YE'VIHC co_ INC. ~ lfO RESPaU'Nrr. JOB No. 221ll.14-1J
c:a>l'RIGHT llOWlNlO ~ >16) SU1MW1G CO., INC. 2013C
SHEET: 2 DF 2
HOW~~~[lW
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-14"
FIELD NOTES
FOR
CONOCOPHILLlPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 14
(VAQUILLAS RANCH A-1 WELLS No. 18, No. 35,
No. 85, No. 155, No. 185, & No. 240)
640.00 ACRES
A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1695,
G.B. & C.N.G. R.R. CO., Abstract 1268, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a found 2" pipe which bears N 41°50'50" W, a distance of 1,969.80
feet, from the Vaquillas Ranch A-I No. 35 Well;
THENCE, N 89°21 '27" E, a distance of 6,725.49 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°48'50" E, a distance ofl,999.05 FEET, to a point for a deflection right;
THENCE, S 00°39'16" E, a distance of2,150.00 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°20'44" W, a distance of 6,707.86 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°58'29" W, a distance of 4,150.50 FEET, to the POINT OF
BEGINNING and containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYrNG DEr ARTMEN1'Jobs\2013\22131.15-13\22131.15-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue . P.O. Box451128 (78045) , Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 , TBPLS Firm Registration Na. 100464-00
EXHIBIT "A-14"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 - RETAINED TRACT 14
(VAQUILLAS RANCH A-1 WELLS No. 1B, No. 35,
No. 85, No. 155, No. 185, & No. 240)
640.00 ACRES
WEBB COUNTY, TEXAS
I
I '
' '
I'
'
I'
1i '
0
t.>"
·"'
"''""0:"
I SURVEY 1698
T.M. R.R. CO.
I Ni:i::..-.
>- . t;
ABSTRACT 2592 '
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o:"'
... N 89"21 'ZJ" E ,.. 8,725..49'
"'"'"'
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I"'
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• '•\ : VAQUILLAS VAQUIU..AS RANCH LEASE 199129-001
~ f.-----1~~'!.'..----~ RANCH 26,622.79 ACRES (CAUED)
S A-1 No. 35 RET.NNED &40.00 N:SlE. l»llT
:;;
....
~
'
VAOUILLAS
-¢-A-1RANCH
Iz
YAQUlLLAS
No. 185
SURVEY 1695
G.B. & C.N.G. R.R. CO.
ABSTRACT 1286
-¢- A-1RANCH
No. 18
WEBB COUNTY, TEXAS
VAQUILLAS VAOU!LlAS
-¢-A-1RANCH -¢- A-1RANCH
No. 85
No. 155
VAQUILLAS
s sg-20·44• w I"' e,101.as•
RANCH VAQUJLLAS VAQUILLAS ,..l.,:
A-1 No. 215 ~-o RANCH 'I VAOUIUAS RANCH V
(BHL) ¥ A-1 No. 215
(>- A-1 No. 191
(SHL)
r RANCH
A-1 No. 193 VAQUILLAS
VAQUILLAS RANCH
-¢- RANCH A-1 No. 241A
A-1 No. 11
(BHL) '"() VAQUILLAS
a UA5 n. RANCH
SURVEY 1692 VARA~CH V A-1 No. 241
P.B. REYNOLDS A-1 No. 184 (SHL) -¢-
VAOUILLAS ~ ABSTRACT 2419 SURVEY 2112 VAQUILLAS I
RANCH ¥ P.B. REYNOLDS RANCH
1
A-1 No. 73
ABSTRACT 2420 A-1 No. 1301
GRAPHIC SCALE VAOU!LLAS
-¢- RANCH VAQUILLAS
k--J-2L~ 'j VAOUILLAS
-¢- A-1RANCH A-1 No. 186
A-1
RANCH
No. 212
c .. fE£T) No. 15
1 """' • 1ooon. , (BHL) .(
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ENGINEERING ANO SURVEYING CO.
0
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SURF...a: UICATIOH
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UNIT UHL
,' 04-12
OS-17-13
06-13
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---- ""' SURVEY WIE
I
10-16-13
WARNING: BASIS OF OC>.RlNG: G.P.S. Tx. South Zone, N.A.O. 27.
TlfS PlA1 lolNlr'.
flElD DATE
""
900<
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. DRAWN SY: LAF./S.l.t.4.
CHECKED BY: J.S.
JOB No. 22131.\5 13
COP'r!ll(;llf llQWVJll DfCll£IRtfG NfO ~co.• U:. 2013C
SHEET: 2 OF 2
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ENGINEERING AND SURVEYING CO.
EXHIBIT "A-15"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 15
(VAQUILLAS RANCH A-1 WELLS No. 180 & No. 217)
541.82 ACRES
A TRACT OF LAND CONTAlNlNG 541.82 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 279,
G.C. & S.F. R.R. CO., Abstract 1353; and Survey 1004, P.B. Reynolds, Abstract 2421,
Webb County, Texas, and being more particularly described as follows:
BEGINNING ala point which bears S 54°13'31" E, a distance of2,749.54 feet, from the
Vaquillas Ranch A-1 No. 180 Well;
THENCE, S 89°24'49" W, a distance of 5,281.57 FEET, to a point for the Southwest
corner hereof;
THENC~ N 00°46'34" W, a distance of2,624.47 FEET, to a point for a deflection
right;
THENCE, N 00°30'06" W, a distance of3,119.05 FEET, to a point for the Northwest
comer hereof;
THENCE, N 89°45'42" E, a distance of2,654.31 FEET, to a point for an exterior
corner hereof;
THENCE, S 00°28'50" E, a distance of2,550.31 FEET, to a point for an interior comer
hereof;
THENCE, N 89°35'17" E, a distance of2,653.22 FEET, to a point for an exterior
corner hereof;
THENCE, S 00°16'38" E, a distance of3,169.04 FEET, to the POINT OF
BEGINNING, containing 541.82 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYING DEPARTMENl\Jobs\20 ! 3U2131.16-13\22131.16-I 3.dce
www.howlandcompanies.com
7615 N. Bartlett Avenue , P.O. Box451128 (78045) , Laredo, TX78041 P. 956.722.4411 F. 956.722.5414
TBPE Flrm Registration No. F-4097 : TBPLS Finn Registration No. 100464-00
EXHIBIT "A-15"
CONOCOPHILLIPS COMPANY
VAQUJLLAS RANCH LEASE 199129-001
RETAINED TRACT 15
(VAQUJLLAS RANCH A-1 WELLS No. 180 & No. 217)
541.82 ACRES
WEBB COUNTY. TEXAS
.
' SURVEY 41
-----\ SURVEY 280
J. LEONARD
ABSTRACT 2634
C.C.S.D. &
~ R.G.N.G. R.R. CO.
\ ABSTRACT 1039
SURVEY 1698
~~a:c~· i~s21>----"-...
'
I
_.._·~-·-·_•_-_.."'"....
_.3_,_.___,_ .... __________ -4
~
SURVEY 279
G.C. & S.F. R.R. CO.
ABSTRACT 1353
:i WEBB COUNTY, TEXAS
,.•
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p
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SURVEY 40
C.R. DAVIS
ABSTRACT 2203
CONOCOPHILLlPS COMPANY
VAOUILLAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED)
RETAlhEJ 54 t .82 N.!ff£. Ltm'
VAQUILLAS RANCH
A-1 No. 180*::--------!~~:_ _________ !
~
,. VAOUIUAS RANCHO I
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-¢- (SHL) • I i'!)'4J•
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VAQUILLAS RANCH
A-1 No. 104 0
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----~
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A-1 No. 217 -¢- jl '-.,~
(BHL) ,
VAOUILLAS RANCH/,...------:::::<.---.-.-~-.-.~...
-.:'.~W::-_-,-...
'-,-.S-7~'----------~'?-~,
A-1 No. 240 ,1
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'
VAOU!LLAS RANCH
"'·OA-1 No. 242 ' ~)
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1 VAOUILLAS RANCH¥ (SHL) '
I A-1 No. 242
{BHL) I'
VAQUIU.AS RANCH_A SURVEY 1004
A-1 No. 157 Y P.B. REYNOLDS '
ABSTRACT 2421
I'
bo·---- '
GRAPHIC SCALE
I'
VAQUlllAS RANCH
!iOJ 0 ~ !iOJ If' A-1 No. 218
-Q- (BHL) VAOUJLLAS RANCH VAQUIUAS RANCH
0 VAOUIUAS RANCH A-1 No. 216....._ A-1 No. 216
A-1 No. 218 (SHU (BHL1 V (SHL)
LEGEND RHlslcn Oo!•
HOWLAND ENGINEERING ANO SURVEYING CO.
TBPl'flnn~tlo.14Wl' TBl'l..SAml~/ob,!t!Cl01.(l(J
-¢-
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WARNING: BASIS OF BEARING: G.P.S. Tx. South Zone, NAO. 27.
ntS PIM 1111'1' HOT $HOW M.l. ~ OF PP£IJKS OR t>8..ES. llOll'l.NIO DfCL'UJll'IC
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FIELD DATE: ""°K PAGE s DAAWH BY: A.LC./LA.F.
~11~=oo~~~~ra:010ND1S>POR '" '" '" CHECKED EJY:
JOB No.
J.S.
221J1.15-1J
SHEET: 2 OF 2
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-16"
FIELD NOTES
FOR
CONOCOPHILLIPS COMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 16
(VAQUILLAS RANCH A-1 WELLS No. 29, No. 44, No. 157,
No. 212, No. 216, No. 218, & No. 242)
558.74 ACRES
A TRACT OF LAND CONTAlNING 558.74 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1004,
P.B. Reynolds, Abstract 2421, Webb County, Texas, and being more particularly
described as follows:
BEGINNING at a point which bears N 74°36'06" E, a distance of2,077.33 feet, from
the Vaquillas Ranch A-1 No. 242 Well;
THENCE, S 00°31 '16" E, a distance of 4,612.08 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°23'44" W, a distance of 5,270.83 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°39'16" W, a distance of 4,613.75 FEET, to a point for the Northwest
comer hereof;
THENCE, N 89°24'49" E, a distance of 5,281.57 FEET, to the POINT OF
BEGINNING, containing 558.74 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
,,j
,.
SHEET! OF2
H:\HOWLAND\SURVEYING DEPARTMENl\lohs\2013U2131.17-13U2131. I7-13.doc
/~~-~¥..·~~ ...'
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.0. Box 451128 {78045) , Laredo, TX 78041 P. 955.722.4411
TBPE Firm Registration No, F-4097 ' TBPL5 Firm Registration No. 100464-00
F. 956.722.5414
lt;r
EXHIBIT "A-16"
CONOCO PHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 N RErAINED TRACT 16
(VAQUIUAS RANCH A-1 WELLS No. 29, No. 44, No. 157,
No. 212, No. 216, No. 218, & No. 242)
558.74 ACRES
WEBB COUNTY, TEXAS
II A
VAQUIUAS
RANCH
I1
I
1 SURVEY 279
G.C. & S.F. R.R.
ABSTRACT 1353
co.
0
VAQUILtAS
RANCH
VA-1 No. 180
I
1
VAQUILlAS A-1 No. 217 1
_Yx_ RANCH . {SHl) 1
VA-1 No. 104 _J
L----~AOu~~~c;---------------- I
I A-t No. 217
: (BHL) -¢- N 89"24'1 -49• E ,.. 5,281.5.,. :
I
;...1 i;'!J6'9rt..-'<--- -----
VAQUIUAS< VAQUILLAS :21_l:!.J.{011·~
RANCH RANCH AQ~~:.: ___ ~-----------
A-1 No. 240 A-1 No. 242 V VAQUIUAS 2.008'
(BHL) RANCH
A-1 No. 242
_n_ VAQUILlAS (SHL) SURVEY 40
5 V RANCH C.R. DAVIS
. ____ __,..
A-1 No. 157 ABSTRACT 2203
CONOCOPHILLIPS COMPANY
VAQUlllAS RANCH LEASE 199129-001
~
VAOUILLAS A
RANCH -y-
~
G
.,;
VAQUILL.AS
RANCH .Q-
26,622.79 ACRES (CALLED)
RETAl\IED &!58..74 ~ UNIT
VA~~'H"'5
,_
~ ______ _
...•
A-1 No. 191 A-1 No. 218('.) VAQUIUAS A-1 No. 216d'"'t..
SURVEY 2112 l (BHL) RANCH (BHL) ¥
P .B. REYNOLDS 3t A-1 No. 218 VAQUJLLAS ':.:,
ABSTRACT 2420 • (SHL) RANCH
DVAOUILLAS ~ SURVEY 1004
P.B. REYNOLDS
A-1 No. 216 -
(SHL) ~
RANCH ">
A-1 No. 241 ~ ABSTRACT 2421
(SHL) -¢-z VAOUlLLAS WEBB COUNTY, TEXAS
VAOUlllAS
-¢- RANCH
A-1 No. 29
RANCH
A-1 No. 1.30 VAOUJUAS
RANCH
VAOUILLAS A-1 No. 212
} RANCH
A-1 No. 186
Q (SHL)
VAQUlllAS-¢-
_y'-( VAQUILLAS RANCH
¥ RANCH A-1 No. 44
A-1 No. 212 (BHL}
s 89"23'-M. w ... a,210.aJ'
VAQUILLAS VAOU!LLAS
RANCH ~ RANCH
A-l No. 239 A-t No. 187
(SHL)
(), VAQUJUAS
I
V RANCH
A-1 No. 2.39
csH'I
SURVEY 1003
J. POITEVENT
ABSTRACT 1655
i-.-.---
!oC(I 0
GRAPHIC SCALE
VO ~ llljlO
c:
( IN f'E£l)
1 Ire), • lOIXH\.
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•.
I UGENO Revl•lon Date
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HO ,.~~~~ft§ji
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-17"
FIELD NOTES
FOR
CONOCOPRIIJJPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 17
(VAQUILLAS RANCH A-1 WELLS No. 15, No. 71, No. 130,
h~~~~~~m~mh~k~k~
No. 239, No. 241, & VAQUILLAS RANCH A No. 89)
635.73 ACRES
A TRACT OF LAND CONTAlNING 635.73 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 2112,
P.B. Reynolds, Abstract 2420, Webb County, Texas, and being more particularly
described as follows:
BEGINNING at a point which bears N 41°40'24" W, a distance of 1,866.60 feet, from
the Vaquillas Ranch A-I No. 184 Well;
THENCE, N 89"20'44" E, a distance of 3,399.18 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°39'16" E, a distance of3,089.17 FEET, to a point for a deflection right;
THENCE, S 00°12'57" E, along an existing fence line, a distance of3,414.86 FEET, to
a point for the Southeast comer hereof;
• THENCE, S 89°22'44" W, a distance ofS,109.93 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°20'48" E, a distance of3,275.75 FEET, to a point for an exterior
corner hereof;
THENCE, N 89°26'27" E, a distance of 1,655.49 FEET, to a point for an interior comer
hereof;
THENCE, N 00°13'32" W, a distance of3,228.56 FEET, to lhe POINT OF
BEGINNING, containing 635.73 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYlliG DEPARTMEl\i\Jobs\2013\22131.18-13122131.18-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box 451U8 {78045) Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 1 TBPLS Flrm Registration No. 100464-00
EXHIBIT "A-17"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 17
(VAQUIUAS RANCH A-1 WEUS No. 15, No. 71, No. 130, No. 145, No. 184, No. 186, No. 187,
No. 191, No. 192, No. 193, No. 194, No. 239, No. 241, & VAQUIUAS RANCH A No. 89)
635.73 ACRES
WEBB COUNTY, TEXAS
VAOUJLlAS -¢1
VAOU!UAS
RANCH I
-¢- A-1 No. 240
•
.~
RANCH VAOUJUAS
SURVEY 1695
A-1 No. 18 RANCH
A-1 No. 155
-¢-
riiif]P-, -¢-
VAOUJUAS I•
J
RANCH
G.B. & C.N.G. R.R. CO.
ABSTRACT 1268
""""""""' A-1 No. 85
•
.._ _____ ---- --- ...... - -- ' ,,.,,
N 89"20' +4-• E ... 3,399.18'
I
I
VAOUILLAS
-¢-
'~~-
I VAOUILLAS
-¢-0. A-1RANCH I
VAQUILLAS
No. 215
(SHL)
VAOUJUAS
RANCH 'j. ,
't"• .. 1~ VAQUJLLAS
RANCH
A-1 No. 191
~Cllc;j
l "
A-1 No. 19J
RANCH
VAOUIUAS
',, .~ RANCH
!:: o~..,
OoN
A-1 No. 215 A-1 No. 241
~
(BHL) -¢- RANCH '°~
'\.~cv.1
II
(BHL) -!() ~z,...
A-1 No. 11
. VAQUILLAS ~~'-'
"' "'Qi
I') '.,_ l
SURVEY 1692 t L-----1235.----~
RANCH
A-1 No. 241
l
w .....
¢- VAOUILLAS
P.B. REYNOLDS
AB,STRACT 2419
~
\.,
' VAOU!LLAS
RANCH
{SHL)
-¢- :. ""'"'
"'.,;~
i
A-1 No. 184 VAQUJLLAS
RANCH
11-1 No. 7J VAOUILLAS
h RANCH
A-1 No. 130
VAOtJILLAS
RANCH § RANCH
A-1 No. 237
z -¢-VAOUILLAS
"' A-1 No. 212
(SHL)
VAQUILLAS {BHL) VAOUIUAS RANCH
VAOUILLAS
RANCH
A-1 No. 2.37
ail- -¢- RANCH
A-1 No. 15
A-1 No. 186
0
RANCH (SHL) -¢-
A-I No. 198
VAOUJLLAS
0 (SHL) N 89"2&'2r E
1.~.49' RANCH ;-.-·
VAOUILLAS
RANCH
A-1 No. 187 A-1 No. 212
•"'?"')( x~~·
VAQUILLAS
RANCH
-¢- (BHL)
-¢- VAQU!LI.AS
RANCH
A-1 No. 91
A-1 No. 239
(SHL) %
,.
-¢-
VAQU!LLAS
CONOCOPHILLIPS COMPANY
VAOUILlAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED)
•
VA~~~'H"5
,.
VAOUILLAS
RANCH :; RANCH
A-1 No. 192 RETAINED 63S.73 ACRE UNJ" A-1 No. 239 ...m
A-1 No. 195
~
(8HL) ~
b (SHL)
l -¢-
VAQUILLAS
RANCH
w
l
w A No. 89
SURVEY 2112
~ "'
~!l
SURVEY 1693 VAQUJLLAS P.B. REYNOLDS g~~
-¢-A-IRANCH ~~-
G.B. & C.N.G.
R.R. co.
No. 194 ABSTRACT 2420
WEBB COUNTY, TEXAS
§ ><"' ...
ABSTRACT 1269 :z "' [;'~~
"'P. ..
~...;~
VAOUILLAS
VAOUILLAS -¢- RANCH
RANCH A-1 No. 71
A-1 No. 90 VAQUILLAS
-¢- -¢-
RANCH
A-1 No. 145
:'J. s 89"22'44. w .... 5,109.93'
·~~·~ ~
VAQUILLAS
RANCH
A-1 No. 208 •• F.R. FE!LLE
AB~:T-~---··
GRAPHIC SCALE
I- '
• 'll
-· "'1 I w~-·~->~->
SURVEY 278
T-.....AJ--!r(J ·=. =
I
FRED SPEED
ABSTRACT 2462
(ll. 1004.54-00
• WW.
Ul'!IT Ull[
f'DICE UHE
'
11115N.BM!oll.A......,. 1..8Mo.lX.1ll(l41 P.lil::IG-722.Mll
-------
WARNING: BASIS Of' BEARING: G.P.S.
www.howlandcompenles.com
T~. South Centrcl Zone. NAD.-27.
-··- "'
SURVE"f UNE
THS PLAT l.IAY MlT SHOW Ml. Cll!lSSl'ICS IY l'Mllt£S OR CA!l..£S. HOM.AllD ElfClt£E!INO FIELD DATE BOOK PN:."'a\ DRAWN BY: LAF.
NG SlMIYEY»IG 00.. Ille. .tSSUMES HO AESPOl!SlllUlY "lU l.OCO.TE PIPEl..N'. Of!; CA8l( a!OSSIHCS..
~~':HG~~NEL~~=:::J:"::-oon:""IJ'~ ~
COPl'RICHT HCN\H(I) DlCff:ERllC ~ SU!MYN: CO., .fie. 201JC
0
"'' "'' "'' CHECKED BY: J.S.
JDS No. 22131.18
"
SHEET: 2 Of
'
Ho. •'1.\\'1
1 ·_:!JJ~~h\ lf1\~rr.··I~·
'WWA[~..,.f~.f'<1lJfili.v
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-18"
F1ELDNOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETA1NED TRACT 18
(VAQUILLAS RANCH A-1 WELLS No. 11, No. 24, No. 72, No. 73,
No. 106, No. 198, No. 215, & No. 237)
615.92 ACRES
A TRACT OF LAND CONTAINING 615.92 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1692,
P.B. Reynolds, Abstract 2419, Webb County, Texas, and being more particularly
described as follows:
BEGINNING at a point which bears N 77°14'2T' E, a distance of2,088.50 feet, from
the Vaquillas Ranch A-1No.215 Well;
THENCE, S 00°13'32" E, a distance ofJ,228.56 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°26'27" W, a distance of7,026.24 FEET, to a found fence comer post
for a deflection right;
THENCE, S 89°56'25" W, a distance of 1,257.95 FEET, to a point for the Southwest
comer hereof;
THENCE, NORTH, a distance ofJ,271.85 FEET, to a point for the Northwest comer
hereof;
THENCE, S 89°52'06" E, a distance of 4,950.94 FEET, to a point for a deflection left;
THENCE, N 89°20'44" E, a distance of3,320.43 FEET, to the POINT OF
BEGINNING, containing 615.92 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYlNG DEPARTMENT\Jobs\2013\22131.19-13\22131.19-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box451128 {78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414
TBPE Finn Registration No. F-4097 : TBPLS Firm Registration No. 100464-00
.I -.,,,--- • _n_ VAOUILLAS
' VAQUJLLAS V RANCH
VAOUlLLAS
1· I•
'
ii
RANCH
RANCH
.I A-1 No. 18
~ I''L_ _____
A-1 No. 85
SURVEY 1696 A-1 No. 156 SURVEY 1695 VAOUILLAS
(SHL) -¢- RANCH -¢-
G.B. & C.N.G. R.R. CO. 155
(ii,,~
P .B. REYNOLDS A-1 No.
x ABSTRACT 2418 ' ABSTRACT 1268 N 7714'27" E
- --- - .. I 2,088.SO'
~)
I l s 89'52'0S-' -c. ... 't,VOU.V't N 89'20'44-. E ... 3,320.43'
VAQUILLAS
RANCH
-..,
!;;II --- _ ......
--------
.. -
·~ SURVEY 1691
"I
"1 "1
><
A-1 (~~L} 215!-J?:s-=-=-------2.ros·-------~- VA~~~'H"s
RANCH
A-1 No. 215 VAQUILLAS
YA-1 No. 193
i
G.C. & S.F. R.R. CO. CONOCOPHILLIPS COMPANY SHL RANCH
VAQUILL-6.S
RANCH CO. ABSTRACT 1267 tel,. VAQUILLAS RANCH LEASE 199129-001 ( ) -¢-. A-1 No. 11
Q
LTO. No. 65 :i ~-I
~ I 26,622.79 ACRES (CAllED)
RET~ED 81S.92 ~ UrtT SURVEY 1692 VAQUILLAS _r,_
~
(SHL)
i ' RANCH V
P.B. REYNOLDS
~-
VAQUILLAS A-1 No. 184
i)- RANCH CO. ABSTRACT 2419 "'
~1-
VAQUILLAS .r'-f
VAQUJLLAS LTD. No. 35
' RANCH V WEBB COUNTY, TEXAS
~
RANCH CO.
LTD. No. 68 §z VAQUILLAS
RANCH
A-1 No. 73
VAQUILLAS
RANCH §
(BHL) VAQUILLAS A ><,.1 A-l No. 106 A-1 No. 237
RANCH co.V (BHL) VAQUILLAS (BHL)
"'
-¢()VAQUILLAS
RANCH CO.
LTD. No. 22 VAOUIUAS
RANCH
11
><,. -¢-
VAQUILLAS
RANCH
A
-y- VAQUILLAS
VAQUJLLAS
RANCH
RANCH
A-1 No. 237
air -¢-
VAQUILLAS
RANCH
A-1 No. 15
LTD. No. 68 A-1 No. 72 A- l No 24 Q RANCH A- 1 No. 198 VAQUILLAS
(SHL)
(SHL) -¢- 11 FatJr.d Fenee A-L No. 106 (BHL) RANCH
I >< >< C"..imar P03t (SHL) Q A-1 (:~l.) 198
-¢" !
1=1 ' I ,_ ' s 89'66'25.
1.257.~'
w tIff>< ' s ' ' '
89"28'27" w ... 7 ,026.24' ' -¢-' ' VAQUILLAS •
I
SURVEY 1676 RANCH I
911 VAQUILLAS
ll .' -¢-
A-1 No
ABSTRACT 2495 ><
RANCH
A-1 No. 192
I VAOU!LLAS VAQUJLL.AS I SURVEY 2112
·~ur
GRAPHIC SCALE
'i
,. RANCH
A-1 No. 92
RANCH
A-1 No. 195
_
-Q-Q
VAQUILLAS
RANCH I P .B. REYNOLDS
ABSTRACT 2420 VAOU!LLAS
..:-.- ........
(Nrm)
, 1,..h .. 1ooon.
=I
tI
¥I
><
-¢- (BHL) A-1 No. 195
(SHL)
1
1
I
-¢- RANCH
A No. 89
LEGEND Rwlslon Doi•
HOWl"AN~ EXHIBIT "A-18" : HORIZONTAL WEil.
0 SUllF"AC[ LOc.t.TlON
04-11-13
11-27-13
ENGINEERING AND SURVEYING CO. CONOCOPHJLLIPS COMPANY -¢- •WW.
.. '
:,'.';" "'"
UNIT UN[ 12-0~13
l9PfAon~No.F-f097 T8Pl.8Rnl~No.1-..00
7..$N.B.uoa.1.- Utwdo,TX,710t1 P.~722.U11
www.howlandcompanlos.com VAQUIUAS RANCH L£ASE 199129-001 ~ RETAINED TRACT 18 =~=:
(VAQUIUAS RANCH A-1 WEUS No. 11, No. 24, No. 72, No. 73, - · · - • "'""" "" "' "
WARNING: BAS!S OF BEARING: G.P.S. T•. South Zono. NAD.-27.
TIU l'L'T
MOT SHOW AU. CROSSINCOS or l'll'tUtUHt OR eo.el..E CftOSSINGS. 615.92 ACRES N/A I H/A N/A II CHECKED BY: J.S.
~TH\:NO~~cr~~~F"tt~OR WEBB COUN1Y, TEXAS 1 11 JOB No. 22131.19-13
COPYRIGHT llClWWIO DOh'WtlNC AA'll SUlMYINO co.. INC. 20130 SHEET: 2 OF 2
1-1.\ll~ OfPAA1'MtNf\JObl\l'DUUJ.1Jll21JU!-~ l/!m1'1 WUI PU. Adobl PDF
HOWLAND
ENGINEERING AND SURVEYING CD.
EXHIBIT"A-19"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 19
(VAQUILLAS RANCH A-1 WELLS No. 25, No. 90, No. 91, No. 92,
No. 132, No.143, No. 195 No. 208, & No. 238)
640.00 ACRES
A TRACT OF LAND CONTAINING 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1693,
G.B. & C.N.G. R.R. CO., Abstract 1269, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 24°31 '42" W, a distance of 1,631.39 feet, from
the Vaquillas Ranch A-I No. 92 Well;
THENCE, N 89026'27" E, a distance ofS,370.75 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°20'48" W, a distance of3,275.75 FEET, to a point for a deflection
right;
THENCE, S 00°41'52" W, a distance of862.52 FEET, to a point for a deflection· left;
THENCE, S 00°21'12" E, a distance of 1,087.58 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°28'19" W, a distance of 5,311.17 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00"23'39" W, a distance ofS,222.38 FEET, to the POINT OF
BEGINNING and containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SUR VI:.i'ING DEPARTMEN'NobsUOJJ\22131.21-13\22131.21-13.doc
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7615 N. Bartlett Avenue P.O. Box451128 (78045) i Laredo, TIC78041P.956.722.4411 F. 956.722.5414
TBPE Rrm Registration No. F-4097 TBPLS Arm Registration No. 100464-00
EXHIBIT "A-19"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 19
(VAQUILLAS RANCH A-1 WELLS No. 25, No. 90, No. 91, No. 92, No. 132,
No. 143, No. 195 No. 208, & No. 238)
640.00 ACRES
WEBB COUNTY, TEXAS
·1I. _r.,_ VAQUIUAS
V RANCH
A-1 No. 11
·1I.
·1
J
•
¥-<
~
VA.?_~!CLlASH
II
><
I "1
><
H--;)
>< ><
I
p~~:~Nl~~S
ABSTRACT 2419
VA~6'if5
-Q-A-1 No 24
-
VAQUILLAS
A-L No. 106
(BHL)
-¢-
VA~~6~
0 A-L
VAQUILL.AS
RANCH
A-1 No. 198 VA~~6'H"'5
-¢-A:~~~:3
-
VAQUILLAS
A-I No. 237
@
(BHL)
VAOUILL.AS
.'. .
V """ ,........,... .,. No. 106 (BHL) A-1 No. 198 RANCH
A-1 No. 72 >< >< llBGIKNING (SHL) -¢- Q (SHL) A- l No. 237
N 89"26'27" E ,.. 6.J]0.75' (SHL)
h.-------~-- ,=-r--
--....:..;::..:.:;,.;;...:..;....;;:;;,;=.,..._,.--===~= --- ---
~ -¢- VAQUILL.AS
l\~ '{J •
1
RANCH
A-1 No. 91
-¢-
I.~~- ~:
I
>< ':"~-:, ~I VAQUILL.AS
~-\ ~ I VAOUILL.AS RANCH
I l
><
'~ I
\
\
I VAOU!LL.AS
RANCH
YAQUI LL.AS
RANCH
A-1 No. 195
_,.i.,_
¥0
RANCH
A-1 No. 195
(SHL)
A-1 No. 192
t-6Jft_4A-1 No. 92 (BHL)
...., .I VAOU!LLAS J?c... VAQUILLAS
RANCH ' U RANCH
VAQUIUAS
-¢-
VAQUILLAS
RANCH
A-1 No. 194
~I
A-1 No. 238 A-1 No. 238
0: (BHL) (SHL)
-¢- RANCH
~
., x A-1 No. 25
SURVEY 2112
"'~'""'
r- "
~f..?N.,,,_. ..' l CONOCOPHILLIPS COMPANY
VAQU!LLAS RANCH LEASE 199129-001
VAQUILLAS
RANCH
P.B. REYNOLDS
ABSTRACT 2420
i 1~I 26,622.79 ACRES (CALLEO) A-1 No. 90
~~~ RETAINED &40.00 ACRE UNIT -¢- -¢-
~B~
x
-¢- ~ - --- -. - ...;
"'~~ z
VAOUILLAS
~~
,." I~
RANCH
A-1 No. 208 ~~
SURVEY 2367
F.R. FEILLE
!l"' ABSTRACT 3333
Ii. SURVEY 1693
G.B. & C.N.G. R.R. CO .
ABSTRACT 1269
I WEBB COUNTY, TEXAS
I ..-'-<: VAQUILLAS
¥ RANCH
A-1 No. 1.32
I "' SURVEY 276
s 89"28'19• w .... 5,311.17' FRED SPEED
1
ABSTRACT 2462
SURVEY 1694
FRED SPEED
ABSTRACT 2461
GRAPHIC SCALE
~93~00 ,i
'"""--~ (IN FIIl") I '
I-..---·-
LEGEND Ravlslon Drita
HOWLAND ENGINEERING AND SURVEYING CO.
lBPEFltmlteglob!lonNo..F-!097 Ttlf'l.8Rm~lt:>.10G4M-03 --"--
0
=
;;
-¢- ,. =ACE LOCAnOH
UKlf LINE
HOllJZOKTAL WELL 1
2
J
04-12-13
05-17 13
10-18-IJ
76\~H.-A......., l.a'..m.TX.7ZIO78041 P. 956.722.4411 J F. 956.722.5414
TBPE Firm Registration Na. F-4097 ! TBPL.S Firm Registration No. 100464-00
l SURVEY 278
FRED SPEED
~
ABSTRACT 2482
f"aund Cone/'1!111
A
' "····-·n\--.......
--
1
,,
'../(~IS': l. VAQUILLAS
N 88'50'379 E - 10,42.5.89'
VAOUILLAS
RANCH
...
~-
,. N
:I! ~
!s
1.ss"-}~?.: Jy l[8 RANCH -¢-E No. 209 (ll
-9<·'""-..... I A E No. 210 ST •
1----------.-----:_. . .,,..L, VAQUIUAS V (BHL) S 89'.31'31• W ... 5.280.JO'
l,522 -Y- RANCH 0· +
E No. 31 VAQUILtAS /
SURVEY 1694
FRED SPEED
ABSTRACT 2461
!.,
l
SURVEY 277
G.C. & S.F. R.R. CO.
ABSTRACT 1337
(SHL)
RANCH
E No. 210 ST
A VAQUILLAS
-y· RANCH
l ;""
E No. 70
WEBB COUNTY, TEXAS
~
l
"'
§
I
CONOCOPHILLIPS COMPANY
VAQUILlAS RANCH LEASE 199129-001 SURVEY 32
z 26,622.79 ACRES (CALLED) A VAQUILLAS C.R. DAVIS
RETNNED 502.31 ACRE UNIT ¥ RANCH ABSTRACT 2582
E No. 82
"'
t~I
------k--,~
\+'+ s 89"-49'01· w ... 5,164.33'
I
I \"' SURVEY 275
I +, G.C. & S.F. R.R. CO.
GRAPHIC SCALE ABSTRACT 1336
!!oOO .J. ~ ~00 1000 2000
1"1.-•••- .......
_ . I VAQUILLAS
( JI fEET} RANCH '
1 mh • 1ooon ,..i.., A No. 19 I
~
LEGEND II Rtvlolon Dalt
HOWLAND
ENGINEERING ANO SURVEYING CO.
TBPER!ll~ll'rtOtlNo.F-4087 11lPUIFm~No.10045'<00
EXHIBIT "A-20"
CONOCOPHILLIPS COMPANY
0
-¢- .. wcu
"
-~,-- : ~~1£u~~r
HORIZONTAL W[U
SURFACt LOCATIOH
J
'
2
04-09-13
05-17-\3
06-05-13
101Ul.-"-'lo ~1X.ta)41 P.~7"M11
www.howland<;0mpanlel!.com
VAQUILLAS RANCH LEASE 199129-001 N RETAINED lRACT 20
(VAQUILLAS RANCH E WEUS No. 31, No. 70,
- - - - - - - = Tl[S
- • • - = SURV[Y LIME
• 08-14-13
WARNING: BASIS OF BEARING: G.P.S. 1.... South Zono, N.A.0.-27.
No. 82, No. 209, & No. 210 ST)
ms !'Liff W.Y ttOT SllO'll" IU CROSSINGS or Pl~E:S Oil C>Jlt.E!I. H:lWVl!tl tNGIHt[lb!IG
" " stJRV£YING CO., .ic. JSS\JllE:S NO R£SPOHSetm' ltl l.CIC\Tt ~C Ofl C0&£ CllO$SN;l5.. 502.31 ACRES
FlELD DATE
NIA
BOOK
,,,
PACE(•) ORi\WN BY: L.A.F.
CHECKED BY: J.S.
~~~~~~%i.~co~~!Jlr~CRN. ft[ OWllDISlllP Ofl WEBB COUNTY, TEXAS "'' JOB No. 22\Jl.22-ll
COP"rlllllttT HOl'!lM'O DIQNwtlNO NIO SllfM'l'JIQ CO. INC. 20\3C SHEET: 2 OF 2
ll:'IHCIYMN~UPMYING DaMfl,OlHT\Jcbo~U\UllUl·U\nUJ.U-~.~ J.U:U7PM.AdoboPDf
How·
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-21"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUJLLAS RANCH LEASE 199129-001
RETAINED TRACT 21
(VAQUILLAS RANCH A-7 WELL No. 249)
608.05 ACRES
A TRACT OF LAND CONTAlNlNG 648.05 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 259,
C.C.S.D. & R.GN.G. & R.R. CO., Abstract 1137, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 39°24'54" W, a distance of 1,866.66 feet, from
the Vaquil!as Ranch A-7 No. 249 Well;
THENCE, N 88°53'51" E, a distance of5,385.00 FEET, to a point for the Northeast
comer herof;
THENCE, S 00°35'40" E, a distance of 5,280.00 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°32'20" W, a distance ofS,369.40 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°45'49" W, a distance of 5,219.79 FEET, to the POINT OF
BEGINNING and containing 648.05 acres of land, more or less.
LESS AND EXCEPT 40.00 ACRES, described as follows:
BEGINNING at a point which bears S 52°35'23" E, a distance of 1,871.58 feet, from the
Vaquillas Ranch A-7 No. 249 Well;
THENCE, N 89°32'20" E, a distance ofl,320.00 FEET, to a point for the Northeast
corner hereof;
THENCE, S 00°27'40" E, a distance of 1,320.00 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°32'20" W, a distance of 1,320.00 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°27'40" W, a distance of 1,320.00 FEET, to the POINT OF
BEGINNING, containing 40.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET! OF2
H:\HOWLAND\SURVEYING DEPARTMENT\JobsU0\ 3\22131.2l- !3\22 \ 3 J.23-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.O. Box 451128 {78045) ; Larr: do, lX 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Regl5tration No. F-4097 , T8PL5 Firm Registration No. 100464-00
EXHIBIT "A-21"
CONOCOPHILLIPS COMPANY
VAQUILlAS RANCH LEASE 199129-001
RETAINED TRACT 21
(VAQUILlAS RANCH A-7 WEll. No. 249)
608.05 ACRES
WEBB COUNTY, TEXAS
SURVEY 36
C.R. DAVIS
I' J
~
ABSTRACT 2581 ' SURVEY 35 '
I' C.C.S.D. &
R.G.N.G. R.R. co.
ABSTRACT 1036
I•
I'
-· '
' SURVEY 16
@~ I C.C.S.D. &
R.G.N.G. R.R. CO.
:~ ~ 1
'
ABSTRACT 2727
----- N 88'53'51 • E ,,.. s.;585.00'
------
''
' ' ',<-
lI
>''~
Ito
-~~ ...
~~~
,_.·~
I
SURVEY 259
SURVEY 264
I C.C.S.D. &
'~ I R.G.N.G. R.R. co. G.C. &
'' I
ABSTRACT 1137 S.F. R.R. co.
I
1166'
'-$
' IVAQUILLAS RANCH
A-7 No. 249
WEBB COUNTY, TEXAS ABSTRACT 3302
---!.I.----- (SHL)
VAOUIUAS RANCH ',
A-7 No. 249 '.._
(BHL)
,,
·~).J~~~J
' " .,. -~
JlllGllOOllG
40.~ or
~
i"
for
m '3cP>-,e trocl
;;. ',,, N 89"32°20• E
" ', 1 32000'
I
I
~ ~
"' "'~
~ ~~ LESS " EXCEl'T ~8 ~
iii' 40.00 M:RES !:; ci
I! ~~ I!~ I!
ci ..
u .. z z
" "
"'""
C') ~- 0
>- i::i i:i:: E-< s 89'J2·20- w
~0ci~
u. CONOCOPHILLIPS COMPANY
VAQUJLLAS RANCH LEASE 199129-001
1,320.00'
:>uzrn
"' ci ':! 26,622.79 ACRES (CALLED)
RETNNED 608.05 l-o A. et: E-<
I'
C.C.S.D. &
R.G.N.G. R.R. co.
ABSTRACT 2816
I' r:'~c;Ol
~I'.:! 'E-<
:>uZi{/}
u
' "' ""'
'
I I "'""
'
.
GRAPHIC SCALE
'
~
" =
bes......- ·~
~
=
I I'
{'" rro I
I lr'Ch - 1DOCJf\.
'
Rn1slon
LEGEND
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HOWliL~~fill 0
-¢-
" HORIZONTAL Wl:Ll
SUAf,lCC l.OC.l.TIOH
wru
'
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04-12-lJ
05-17-IJ
ENGINEERING ANO SURVEYlNG CO.
_,_
111PEFhn~W...f-4Clll'
www.howlandcompenles.com
TIIPl..Sfb>RogialldcnNo.IQ04&1.(1()
l'll15N.-,l-... Undl>.TX.71IOIP OR
l.fSSOlt. THIS DRAn1CO W« IXCWSNCLT' FM lllR.JHCTCl'I R£SCM!C£S O.kC CD. lP.
'" CHEC!(E() BY: J.S.
JOB No. 221J1.2J-1J
COPmlCH1" HOWUoNO EHCl!€IRtlC ~ SUllVE'l\ltl;l CO~ ..-;:. lOllC
SHEET: 2
' OF
HOWLAl~D
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-22"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 22
(VAQUILLAS RANCH A WELLS No. 14, No. 19, No. 20, &
VAQUILLAS RANCH B No.13)
612.33 ACRES
A TRACT OF LAND CONTAINING 612.33 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 275,
G.C. & S.F. R.R. CO., Abstract 1336, Webb County, Texas, and being more particularly
described as follows:
BEGINNING ata point which bears N 46°23'57" W, a distance of936.17 feet, from the
Vaquillas Ranch A No. 14 Well;
THENCE, N 89°49'01" E, a distance ofS,164.33 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°30'14" E, a distance of5,150.08 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°49'01" W, a distance ofS,194.07 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°10'23" W, a distance of 5,150.00 FEET, to the POINT OF
BEGINNING, containing 612.33 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:U:l.OWLAND\SURVEYrnG DEPARTMEN"Nobs\2013\221J1.24-13\22131.24-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue ; P.O. Box 451128 (78045) i Laredo, l'X 78041 P. 956.722.4411 f_ 956. 722.5414
TBPE Firm Registration No. F-4097 1 TBPLS Firm Registration No. 100464-00
EXHIBIT "A--22"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 22
{VAQUIUAS RANCH A WEllS No. 14, No. 19, No. 20, & VAQUIUAS RANCH B No. 13)
61 2.33 ACRES
WEBB COUN1Y. TEXAS
I• ,....., VAOUJLLAS
V RANCH
I
1
ENo.70
• 1
I• SURVEY 277
I•
I •
I•
G.C. & S.F. R.R. CO.
ABSTRACT 1337
-¢- VAQUJUAS
•
I•
J~ • POINT o!'l
RANCH
E No. 82
•
lllGllOOllG
- • • - ., • --,;..,---.------_;•;;..;... ;;.."0~1~·-=·-N_.;~~·~'84;.;.;.33';;;;._ _ _ _ _ _ _ _ _ _- ;
;;....
I•
't._....r. t
.s>.J:'$:• I~ SURVEY 32
~,*. t
'~
VAQU!UAS
C. R. DAVIS
f---576'"--Y- RANCH ABSTRACT 2582
A No. 14
VAQUILLAS
RANCH
A No. 19
~d CONOCOPHILLIPS COMPANY
VAQUJUAS RANCH LEASE 199129-001 ~
- :i E-o
- · · -- · · __...11-----------s-...--.-.'"·o-,::-.-w-N-.-.-,.-.-.o-r.,...----------9 " ... ~ei~
""'' 0:
•• "'"""'
r:i<;l
.;
I• uu SURVEY 274
G.T. BLACK •
ABSTRACT 2551
I•
GRAPHIC SCALE •
(IN m;r)
'j r I•
1 Inch~1DODFl.
Revlslcm
HOWlA~lQJ
ENGINEERING AND SURVEYING CO. -¢-
__
0 • ~;~~~.
...._ ~ ~ 1.JHE 2
' '°'"
04-09-13
05-17 13
3 06-06-13
TBPE~~.::.....F-4097~~~~~~~ ---<- • F'tNCE: UN[
U---------~===~==~---------H
www.howlandoompa.l'\les.com ------- "
- • • -
TIES
= SURVEY LINE
• 06-14 13
FIELD OATE BOO<
,,,
PAGE sl DRAWN EJY: LAF.
"' "' CHECKED BY:
JOB No. 221J1.24 13
J.S.
SHEET: 2 or 2
HOWLAND
ENGINEERING AND SURVEYING CO.
EXHIBIT"A-23"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAlNED TRACT 23
(VAQUILLAS RANCH A WELLS No. 27, No. 36,
No. 146, No. 149, & No. 158)
639.04 ACRES
A TRACT OF LAND CONTAINING 639.04 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 276,
G.T. Black, Abstract 2552, Webb County, Texas, and being more particularly described
as follows:
BEGINNING at a found iron rod on the West right-of-way line of Ranch Road 2895,
which bears N 52°54'37" W, a distance of 838.32 feet, from the Vaquillas Ranch A No.
36 Well;
THENCE, N 89°34'02" E, along as existing fence line, a distance of5,282.71 FEET, to
a found concrete monument, for the Northeast comer hereof;
THENCE, S 00°10'23" E, a distance ofS,279.75 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89°33'08" W, a distance of 5,260.79 FEET, to a found 2" pipe, for the
Southwest comer hereof;
THENCE, N 00024'40" W, a distance of 5,281.06 FEET, to the POINT OF
BEGINNING, containing 639.04 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET I OF2
H:\HOWLAND\SURVEYING DEPARTMENl\Jobs\20 \ 3\22 l3 l .25-13\22131.25-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box45112B (78045) J Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 ! TBPL5 Firm Registration No. 100464-00
EXHIBIT "A-23"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 23
(VAQUILLAS RANCH A WELLS No. 27, No. 36,
No. 146, No. 149, & No. 158)
639.04 ACRES
. WEBB COUNTY, TEXAS
I !
~
•
)i
I~
I ~
~ SURVEY 1694
F. SPEED
ABSTRACT 2461
'~"' c~mt•
I
1
I
j
--- --
Y 0 '""' ''o"
Rod
~~~--.~~~~--'..,.;;.;.-,;;;;;....;;,_..;;;;;~~~~~~~~
P:::l',: l.
N 8V'34'02• E - 5.282.71'
Mo""m~t-,
l
......-------
N 52'5" '37• YI-..- ' , , I;;;;
8JB.J2' ,-:;¢'-VAQUILLAS
I
>< 655 RANCH
ANo.36
VAOUlllAS
RANCH
A No. 27
-¢-
VAQUIUAS
• RANCH
.I
A No. 14
.I YAQUI LI.AS
-¢- A ~~C~49
..,
~I
lo
CONOCOPHlLLIPS COMPANY
~
0
~
'
i. VAQUILLAS RANCH LEASE 199129-001
26,622.79 ACRES (CAUED)
RETAINED 839.04 ACRE Ut«T "' '"'"'
·"'
"""'"'
VAQUILLAS ...' Nii ......
"I -¢- RANCH
j:i ~.: t;
i II
A No. 158
SURVEY 276 0 "'ui 0'1
G.T. BLACK
ABSTRACT 2552
~
U>
"'"'!ii
UJ
u
!:! •
z
. WEBB COUNTY, TEXAS VAQUILlAS
RANCH
A No. 146
ci
-¢-
.I (BHL)
I
I VAOUILLAS
VAQUJLlAS
RANCH
A No. 20
RANCH
I
7
ANo.1460
(SHL)
,_ ---- ----&-1---------------------------'9'--
s w ,.. ~I
---- ---
"l:r-- round 2"
89"33 08• 1
5,2.60.79'
:\ \ Pipo VAQUILLAS
-¢- RANCH
ti·
.. 1
No. 174
SURVEY 226
·1 •
I I G.T. BLACK
ABSTRACT 2550
GRAPHIC SCALE
:500 9 2'0 ~ 1000
'~
°l".•..W;;,,,jwwi . I
( ti rn;r)
.
LEGEND RoYlslon Doto
HOWLANDENGINEERING AND SURVEYING CO.
ll!PEArm~Ni>.F-40ll"f l8Pt.11Arm~Ho..1004&4-00
0
-¢-
;o HDIUZOHTAL WELL
SURFACE LOCATION
wru.
UHIT UHE '
04-11 1.'.5
05-17-IJ
06-06-1.'.5
711~N.-A- Lo-TX.19001 P.O!fl.722.0411 ftMCC UMC
08-14-13
www.howtandeompanles.com
WARNING: BASIS Of SD.RING: G.?.S. Tx. South Control Zon ... NAD.-27.
""
SUMY UHE 5 11 27-1.'.5
nus P\,lil w.y NOT SKlW MJ. CROSSJjCS or Pl'El.JNES Oii CAil.ES. HOlltNIO DIWiEl'.laNC FIElD [).t.7£ PAGE" DRAWN BY: LAf.
"" "" CHECKED B'f:
JOB No. 221J1.25-1J
J.s.
SHEET: 2 OF 2
Ho ... ~1 ~tf!J., IT\1:.~Wf.~1
. 'WWJl1..-m@~J1f~fll:b.Jt
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-24"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 24
(VAQUILLAS RANCH WELLS No. 16, No. 164, No. 174, AND
VAQUILLAS RANCH A WELLS No. 111, No. 116, & No. 125)
633.38 ACRES
A TRACT OF LAND CONTAlNlNG 633.38 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 228,
G.T. Black, Abstract 2550, Webb County, Texas, and being more particularly described
as follows:
BEGINNING at a found 2" pipe on the West right-of-way line of Ranch Road 2895,
which bears N 73°18'04" W, a distance of2,034.65 feet, from the Vaquillas Ranch No.
174 Well;
THENCE, N 89033'08" E, a distance ofS,260.79 FEET, to a point for the Northeast
corner hereof;
THENCE, S 00°10'58" E, a distance of 5,254.72 FEET, to a point for the Southeast
corner hereof;
THENCE, S 89"32'59" W, a distance of 5,240.13 FEET, to a point under an existing
fence on the West right-of-way line of said Ranch Road 2895, for the Southwest comer
hereof;
THENCE, N 00°24'29" W, a distance of 5,254.89 FEET, to the POINT OF
BEGINNING, containing 633.38 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
,.
!;
.~-1.,
;.;;.:
;,ii-~
~:~1
/:~1
/..- .~;
SHEET! OF2
H:\HOWLAND\SURVEYlNG DEPARTMEt-rruobs\2013\22131.26-13\22131.26-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box 451128 (78045) . Laredo, TX 78041 P. 956.722.4411 1 F. 956.722.5414
TBPE Firm Registration No. F-4097 ; TBPLS Firm Registration No. 100464-00
EXHIBIT "A-24"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH L.£ASE 199129-001 N RETAINED TRACT 24
{VAQUIUAS RANCH WELLS No. 16, No. 164, No. 174, AND
VAQUIUAS RANCH A WELLS No. 111, No. 116, & No. 125)
633.36 ACRES
WEBS COUNTY, lE<
BICllOOMG
Found 2· Pipe
u-------~-~~::_-:::::~~ VA~~
----- - -•....7.!'19•
>OJ,-~·.
N 89"JJ'oa· E ... 5.2eD.79' A No. 146
II§
I
-¢-
VAQUILLAS
RANCH A~
' I
I
I
....
VAOUILLAS
-¢- A RANCH
____
No. 20
>< 1,945' No. 174
I" SURVEY 274
J" SURVEY 228
G.T. BLACK
ABSTRACT 2551
G.T. BLACK
0 I ABSTRACT 2550
"
~.,
" -¢- WEBB COUNTY, TEXAS
-~g'" J ,I VAOUILL.AS
RANCH
No. 164
"'~~-
-~ 1·
" 1~
I I
CONOCOPHILLIPS COMPANY
~~t VAQUJUAS RANCH LEASE 199129-001 "'
"''"~ ~
!
26,622.79 ACRES (CALLED)
::>"'"'
"' . ':! ""II~ RETJ.tiED 8JJ.J8 N:R£. UNrr
-¢- ..~
"'uui z ' ~ VAQUILl.AS
1·~ VAQUILLAS RANCH
u ~la -¢- RANCH
A No. 116
A No. 125
1·~
11
-1
1· -¢- VAQUILLAS -¢- VAOUILLAS
RANCH
I
II,[ RANCH A No. 111
~------
No. 16
-------·
s 89"32'~9· w ... !5,240. 13'
I •
I
I VAQUILLAS
-¢- RANCH I
I.
I No. 10
II SURVEY 227
C.C.S.D. & R.G.N.G. R.R. co. VAQUIUAS~
I•
•• ABSTRACT 1133 RANCH I
No. 12 T
Il I
I
~ I I
soo
--
~--A-"
GRAPHIC SCALE
~ soo ·~I
-I
VAQUILLAS
-¢- ~c1~
I
I
( N FUT)
1 1'><11 ~ 1000fl.
.
I
LEGEND Revhlon Oat•
HOWLAND
ENGINEERING AHO SURVEYING CO.
TBPEFnnRoQllhlb'IMl>.F.-r TllPl..Sfm~Nc>.•~ _,_
0
-¢-
= HORIZONTAL WELL
SURFACC L.OCATlOH
wru
UNIT UHE
' (M.-11-13
m«:£ UNE
7 a 1 5 K . - - ~lX.78041 P.~722M11
www.hoWlandcompanles.com
----
------- =
SURVEY Uff[
~ BASIS OF BE'ARING' G.P.S. Tx. South Zono, N.A.D.-27.
llG Pl.AT 111.Y l!OW MJ. CROSSINGS or P!l>[ll;£S OR CIBl.!:S. l/OMNID EHGff.DlllG
Niil SU~ CO~ IHC. A.SSIJMES NO RE?iPOIGlllUl'I TO LOCATE Wfl..tfE Ofl Cla.E CROSSINGS.
flElD tlATE
"'o' PAGE s ORAWM Br: LM.
~~~~~~CO~:~ rtl: OWHE11SHP OR "' " "" CHECKED SY: J.S.
JOB No. 22131.25
CIJPTRICHT HOM.NID o.'QH[ERlllG Al«> ~ co~ INC. 201lC
SHE.ET: 2 OF 2 "
, U11[l,/1{\ ~\DC't;:)
HO 'WWA~~~-~w ~1Lz.-.·
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-25"
FIELD NOTES
FOR
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 25
(VAQUILLAS RANCH WELLS No. 10, No. 11,
No. 12, VAQUILLAS RANCH A No. 80, & No. 99)
640.00 ACRES
A TRACT OF LAND CONTAlNlNG 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 227,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1133; and Survey 273, C.C.S.D. & R.G.N.G.
R.R. C.o .• Abstract 1141, Webb County, Texas, and being more particularly described as
follows:
BEGINNING at a point which bears N 33°34'02" E, a distance of 1,360.57 feet, from
the Vaquillas Ranch No. 12 Well;
THENCE, S 00°26'16" E, a distance of 4,991.78 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°36'57" W, a distance of332.74 FEET, to a point for a deflection left;
THENCE, S 89°36'41" W, a distance of 5,270.89 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°05'03" W, a distance of 4,985.84 FEET, to a point for the Northwest
corner hereof;
THENCE, N 89'32'59" E, a distance of 5,572.87 FEET, to the POINT OF
BEGINNING and containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H;\HOWLAND\SURVEYJNG DEPARTMENT\JobsUO 13\22131.27· 13\22131.27-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.O. Box451128 {78045) 1 Laredo, TX78041 P. 956.722.4411 J F. 956.n2.5414
TBPE Finn Registration No. F-4097 : TBPLS Finn Registration No. 100464-00
EXHIBIT "A-25"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 25
(VAQUILLAS RANCH WELLS No. 10, No. 11, No. 12,
VAQUILLAS RANCH A No. 80, & No. 99)
640.00 ACRES
WEBB COUNTY, TEXAS
a 1[ '
I'
,,.,'
~I
C) -¢-
Pi VAQUILLAS
.-\~~ SURVEY 226 -¢-
VAQUILLAS
RANCH
RANCH
'
I'
A No. 125
- :z; t;
~
[· G.T. BLACK
ABSTRACT 2550
A No. 116
[;'~O'i
!3"' ....
·1 l '
~
"'"~ ti l -¢- VAOUILLAS
I SURVEY 274
"oj
C)
ti
:j l
-¢- VAQUILtAS
RANCH
No. 16
RANCH
A No. 111
I
I
,__ _______
G.T. BLACK
ABSTRACT 2551
~---
I N 89"32'9• E ,., r5$12.t!n"
f .v' '
a.I ·%
.I -¢-
VAQUILLAS
RANCH
~·
~1
I ~/-,
4;:~.
~ GPODIT or'"')
~
£lJH£ OR CIBl.E Cl!OSSl«l$.
~~'=.c~~~~~ ffl: a..wtSHI' OR
FJELD DATE
"" "'
"'•I• . DRAWN BY: LA.F./S.l.M.
o-IECKED BY: J.s.
JOB No. 221Jl.27
COFYRD€£RtlC ~ Sl.RM'EYIHG CO.. NC. 20!JCI
SHEET: 2 OF 2 "
HOWi~i~[x_g
ENGINEERING ANO SURVEYING CO.
EXHIBIT"A-26"
FIELD NOTES
FOR
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 26
(VAQUILLAS RANCH WELLS No.15, No. 18, No.154, No. 177,
No. 182, AND VAQUJLLAS RANCH A No. 175, & No. 231)
635.36 ACRES
A TRACT OF LAND CONTAINING 635.36 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 988,
J.H. Fuller, Abstract 2593, Webb County, Texas, and being more particularly described
as follows:
BEGlNNING at a point which bears N 59°15'10" W, a distance of907.68 feet, from the
Vaquillas Ranch No. 18 Well;
THENCE, N 89°36'41" E, a distance ofS,270.89 FEET, to a point for the Northeast
comer hereof;
THENCE, S 00°06'58" E, a distance of 5,240.20 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°23'40" W, a distance ofS,272.32 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°06'07" W, a distance ofS,260.16 FEET, to the POINT OF
BEGINNING, containing 635.36 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
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www.howlandcompanies.com
7615 N. Bartlett Avenue ; P.O. Box451128 (78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 ; TBPL5 Firm Registration No. 100464-00
EXHIBIT "A-26"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 N RETAINED TRACT 26
(VAQUILLAS RANCH WELLS No. 15, No. 18, No. 154, No. 177,
No. 182, AND VAQUILLAS RANCH A No. 175, & No. 231)
635.36 ACRES
WEBB COUNlY, TEXAS
-¢- I
•
VAOUILl..AS
RANCH "
t'
A No. 99
I
" VAOUJLLAS
I -¢-RANCH A
No. 231
"
I SURVEY 986
J.H. FULIER
"
ABSTRACT 2593
I WEBB COUNTY, TEXAS
I
• -'~No.
A
VAQUlllAS
RANCH
182 ~><
.~.
V
VAQUILlAS
RANCH A
No. 175
-'1---'1-
-'/;
"1--- "1-
\
z
CONOCOPHlLLIPS COMPANY
VAQU!LLAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED)
"
\ ..
VAQUILlAS
REl'AliED 835.38 ACRE UNIT
"\
>'< RANCH
V No. 154
\
,• VAOUILLAS
>'< RANCH
\"
I V No. 177
\
[ I
-- ---- -- ~~---------,s~..-"'2.>""°'<0"'='·~w~~-:•~;1.:!'7':'2.32~.--"""-------t~- ~~
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01"'
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SURVEY 229
C.C.S.D. & R.G.N.G. R.R. CO.
I [;'
"'"' . "'~
ABSTRACT 1132
GRAPffiC SCALE ''
T "'~':\!
I
{IN f'!:rT)
W~ • IODIJR.
I'
l.£GENO R•vblon
""''
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ENGINEERING AND SURVEYING CO.
lllPEFtmRoglonlion/ob.~1 Tlll'l.SFtm~ND.11XM64-0:l
0
-¢-
,. HORIZONTAL WELL
SURFACE \.OCATIOH
wru
UHIT UHC
' 0'4-11-1.3
7815N._ll_ t..ot.io,TX.7'°'1 P.ll:le..n:z.M\1 F£HCE LJH[
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WARNING: BASIS OF BEAAING: C.P.S. Tx. South Central Zone. NAD.-27.
""'
SURV£Y UN£
nG PUJ W.1 NOT SHOlf NJ. alOSStfCS Of' PIPEIJNES 00 Cla.l:li. HOWl.HiO ENOINCERING FlElD DATE BOOK PAGE SJ DRAWN BY: LA.F.
NID ~ CO~ t1C. ASSWCi NO RESl'ONSlllUIY T1l UlCA.l( PPllJNE OR CA!J.£ C!OSSINCS.
NO ~ IS llO!E8'1' W.OC l!El;NIDING ClRROIJ OR ACTiw. SURl',ia/l.llHEJW.
U3SOlt. nns llRAJiTfC w« DCCWslVEl.T fllf! ~ ~ °""' ru:OllNERS>IP Off
co. U'. '" '" " CHECKED BY: J.S.
JOB No. 22131.28-lJ
COl"l'RICHT ltOWWll ENCll£El!fiG AHO Sl.Rt'E'l'M:: co., t«:. 201JC
SHEET: 2 OF 2
HOWLL~~,~~~
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-27"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 27
(VAQUILLAS RANCH A-12 WELLS No. 168 & No. 202)
614.74 ACRES
A TRACT OF LAND CONTAlNING 614.74 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 987, J.
Poitevent, Abstract 2061, Webb County, Texas, and being more particularly described as
follows:
BEGlNNING at a point which bears N 13°58'44" E, a distance of 1,605.58 feet, from
the Vaquillas A-12 Ranch No. 168 Well;
THENCE, S 00°30'00" E, a distance of 5,218.37 FEET, to a found 8" fence comer post,
for the Southeast comer hereof;
THENCE, S 89°22'22" W, a distance ofS,138.40 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°06'58" W, a distance of 5,240.20 FEET, to a point for the Northwest
comer hereof;
THENCE, N 89°36'57" E, a distance of 5,103.29 FEET, to the POINT OF
BEGINNING, containing 614.74 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
;.i.
_:~
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r·~i
SHEET 1 OF2
H:\HOWLANDISURVEYING DEP ARTMENl'Jobs\2013U2l3I.29-13\22131.29-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Boll 451128 (78045) i Laredo, 1){78041P.956.722.4411 1 F. 956.722.5414
TBPE Firm Registration No. F-4097 i TBPlS Firm Registration No. 100464-00
EXHIBIT "A-27"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 ~ RETAINED TRACT 27
{VAQUIUAS RANCH A-12 WELLS No. 168 & No. 202}
614.74 ACRES
WEBB COUNTY, TEXAS
I I
SURVEY 273
'
' C.C.S.D. & R.G.N.G. R.R. co. I
SURVEY 227 I ABSTRACT 1141
,__!
•
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C.C.S.D. & R.G.N.G. 1
R.R. CO.
ABSTRACT 1133
1
_____ , ___ .,,--.,,--r
. ~\__
VAOUILLAS
_..-'1. __ .,, N 89"38"F E \ ... ~.103.29' RANCH
------_,,,,_*"':..:....~~~....::..=..::::.::..~~::.:.::::::::..~~~~~-.~~ A-4 No. 173
_......,,---
'1.---1- ""1 '' "'/
• J.
.. -I .+~
\ VAQUILI.AS ~! ;,~·
"1 RANCH
168~
I ;e:I
• A-12 No.
(BHL)
,.,f
I
SURVEY 988
J.H. FULLER
ABSTRACT 2593
1• ,
0--- I
SURVEY 987 1 VAOUILLAS
RANCH
A-12 No. 168
401'
-¢-
VAQUlUAS
l •1
J. POITEVENT (SHL) RANCH
ABSTRACT 2061 A-4 No. 121
WEBB COUNTY, TEXAS
_rt_
VAQUJUAS
RANCH
VA No. 175 •
l
:I: "
I A VAOUIUAS
L ___ _
i CONOCOPHJLLIPS COMPANY
"
I
VAQUILLAS RANCH LEASE 199129-001
i.r· RANCH
A-12 No. 202
~
!}
26,622.79 ACRES (CALLED)
RErAIN£D 814.74 ACRE utlT ...•
I
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I RANCH
C No. 64
f - - ~-~~- ~------::-:::=~r":-:-:.=-=-----~;;:=-t-t=l=
S 89"22'22"' W - 15,138.40' Found 8"
fanca Post
SURVEY 230
W.R. AU.DREDGE
ABSTRACT 2523 I.
~------
.'1:
GRAPHIC SCALE
:i.oo 0 2SO SOO 1000
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(tll'!FI)
I:
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SURFACE l.OCATIOlt
Q-1.-09 \J
ENGINEERING AND SURVEYING CO.
TDPEFlmi~Na.~ 1BPLS F'""'Rldsh6lnNa.1~
76\SN._A_ 16odo.1X.78l)O\ F>.PS&.722Mll
""'
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WARNING: B.o\SIS OF BEAR!liG; G.P.S. Tx. South Central Zone, NAD.-27.
""
SURVEY UHE
Tlf:S PL» W.T NJT S>10111 ALL C110SS11c:S Of' P'PEl.JtCS OR C1aLS. tlOWlAllD £NCIN(£~
""'° ~ CO., INC- MSl.MCS 1«1 ~!11.Jl'r TO 1,0CATI: Pffl.H: Oii CIBL.E Cl!OSSIHGS.
FlElD OATE 'OOK
N' "''". OAAWH BY: tAF.
~~H=.c~~~i::.=~rorr:-U'~Dlt "' " CHECKED SY;
JOB No. 22131.29-IJ
J.S.
COPmlClfT "OMJ,HI) EHCHDll'IC AN> SUIMwt: CO.. tlC. 20\JC
SHEET: 2 or 2
HOWLA~JD
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-28"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129..001
RETAINED TRACT 28
(VAQU1LLAS RANCH A-6 WELLS No. 41, No. 57, No. 229, VAQU1LLAS
RANCH H No. 28, No. 109, VAQU1LLAS RANCH H No. 224 A &
V AQUILLAS RANCH H No. 46 C)
640.00 ACRES
A TRACT OF LAND CONTA1NING 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 31,
C.C.S.D. R.G.N.G. R.R. CO., Abstract 1043; and Survey 26, R.0. Bamesley, Abstract
2133, Webb County, Texas, and being more particularly described as follows:
BEGINN1NG at a point which bears N 58°26'33" W, a distance of 1,644.66 feet, from
the Vaquillas Ranch A-6 No. 41 Well;
THENCE, N 89"29'46" E, a distance of 5,358.90 FEET, to a point for the Northeast
corner hereof;
THENCE, S 00°29'05" E, a distance of2,525.78 FEET, to a point for a deflection left;
THENCE, S 01°28'37" E, a distance of2,670.53 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°32'59" W, a distance ofS,399.74 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°32'40" W, a distance ofS,190.85 FEET, to the P01NT OF
BEGINNING and containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\.SURVEYING DEPARTMENNobs\2013\22131.31-13\22131.31-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.O. Box451128 (78045) Laredo, TX78041P.956.722.4411 F. 956.722.5414
TBPE Arm Registration No. F-4097 TBPLS Firm Registration No. 100464-00
EXHIBIT "A-28"
CONOCOPHILLIPS COMPANY
VAQUJUAS RANCH LEASE 199129-001 ~ RETAINED TRACT 26
(VAQUIUAS RANCH A-6 WEllS No. 41, No. 57, No. 229, VAQUJUAS RANCH H No. 26,
No. 109, VAQUJUAS RANCH H No. 224 A & VAQUJUAS RANCH H No •.46 C)
640.00 ACRES
WEBB COUITTY, TEXAS
'
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VAQUJLLAS
~~~J
B
~~
• -\BBGINHING
SURVEY 31
C.C.S.D. & R.G.N.G. R.R. CO.
ABSTRACT 1043
WEBB COUNTY. TEXAS
'
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·(Js">-..if- co: VAQUILLAS
'-..,
-----1~1' ____':...'-Q-A-6 No. 41
1 RANCH 26,622.79 ACRES (CALLEO)
RETAttED &40.00 JafE. UNIT 5 "'"'
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I§.,,
VAOUJUAS ' 01
RANCH "'
A-6 No. 229
-¢-.(BHL) VAOU!LLAS ~
RANCH ~
.0 VAOUILL.AS
-o-A-6 No. 57 !!
RANCH
A-6 No. 229 "'
(SHL)
~ ------------------------ -----
VAOUILLAS
z VAQUIUAS RANCH
RANCH -¢- H No. 109
-¢-H No. 46 C
SURVEY 274
G.T. BLACK
ABSTRACT 2551
SURVEY 26
R.O. BARNESLEY
VAQUILLAS
ABSTRACT 2133
RANCH
-Q-H No. 224 A
VAOUIUAS
-¢-
VAOUILLAS
,_________ vr'-iHNo.28
RANCH
RANCH
A-6 No. 83
~.-----------s---,-.~.,.-.:-w---o~~.~J~.7.----------1... ...
VAOUILLAS
' RANCH
-¢- H No. 96
CRAPlliC SCALE VAQUILL.AS
1;
~
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(IN Fm)
1 Inch - 1ooon
VAOUILLAS
RANCH
-¢- H No. 225
RANCH
-¢-H No. 115
LEGEND
HOWLAND ENGINEERING AND SURVEYING CO.
TaPEFm.~No..l'-4097 n?Ull'tm~N<>.1~
0
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SURrACE LOCATIOH
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WARNING: BASIS or
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'MS PlA7 NAY NOT ~ ALL CROSSINtS Of PIPEl#£S DR aa..E5. liDWlNftl ~ flElD O.ATE PAGE ~I OAAWN BY; LA.F"./S.1.1.1.
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~ll~~~~~d:x:o~~.EJW. FD: OIM1!SllP OR "' "'' OiECKED SY: J.S.
JOB Ne. 221J1.Jl 13
COP'l'l!IGNT lfOlllNID DK:11ED!1NC ANO SUIM:'l'\NC CO~ tole. 20!lC
SHEET: 2 OF 2
HOWUi\~;~~
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-29"
FIELD NOTES
FOR
CONOCOPBILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 29
(VAQUILLAS RANCH B WELLS No. 96, No. 115, No. 162, No. 226,
VAQUILLAS RANCH D No. 117, No. 153, No. 223 &
VAQUILLASRANCBNo.17)
618.16 ACRES
A TRACT OF LAND CONTAlNING 618.16 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 26,
R.O. Baroesley, Abstract 2133; aod Survey 273, C.C.S.D. & R.G.N.G. R.R. C.O.,
Abstract 1141, Webb County, Texas, and being more particu]arly described as follows:
BEGINNING at a point which bears N 33°41 '33" E, a distance of 1,796.29 feet, from
the Vaquillas Ranch H No. 162 Well;
THENCE, S 01'28'37" E, a distaoce of2,576.14 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°10'24" W, a distaoce of 10,341.47 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00'26'16" W, a distaoce of2,643.65 FEET, to a point for the Northwest
comer hereof;
THENCE, N 89°32'59" E, a distaoce of 10,294.50 FEET, to the POINT OF
BEGINNING and containing 618.16 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYJNG DEPARThffi.N"Nobs\2013\22131.32-tl\22131.32-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue i P.O. Box451128 (78045) I Laredo, lX78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 I TBPLS Firm Registration No, 100464-00
SURVEY 274
G.T. BLACK •
ABSTRACT 2551 •
I VAOUll.l..AS
~\
RANCH
.JS· 1:; ~~~~
No. 12 T 0 No. 223 VAOUILLAS RANCH VAOUILLAS °ta <-i 1;j
~z RANCH -¢-H No. 115 RANCH ;...
-¢- H No. 226
H No. 162 o
"
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.. VAQUILLAS
RANCH J~
!5c::i~Ul SURVEY 273 A-4 No. 150-¢- ,..[Zl ..
ti}~ ~ C.C.S.D. & R.G.N.G. R.R. co. [;:el"
c..i ABSTRACT 1141
"'"Cl
::> ..
. "'
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GRAPHlC SCALE I SURVEY 25
"~ I• C.C.S.D. & R.G.N.G. R.R. CO.
• • LJ..3
';,-- 'j
( IN filT)
1 .... ~ • 1000 Fl
I
>--\ ' .-J ABSTRACT 1042 I
I
I
LEGE:NO R•villon 001•
HOWLANDENGINEERING ANO SURVEYING CO.
18PERmoRogftltolkwl"°·-' lllPUIFmRo;lolrftontlo.1~
EXHIBIT "A-29"
CONOCOPHILLIPS COMPANY
0
-¢-
: HORl20KTAL WEU.
=
SURrAC£ LOCATION
lfl'[ll
., UNIT UM£
04-12-13
05-17-13
08-06-13
1016H.-.S,O,- i..mlX.111(141 P.llC.0.1n.4<11 VAQUILLAS RANCH LEASE 199129-001 - RETAINED TRACT 29 <- - " rt:NCC UN[
10-18-13
www.howlarnlcompanles.com - - - - - - - =TIES
(VAQUILLAS RANCH H WEUS No. 96, No. 115, No. 162, • SURVEY UNE 11-::n-13
~ BASIS OF' BEAAINC: G.P.S. T~. South Zone, N.A.D.-27. No. 226, VAQUILLAS RANCH D No. 117, No. 153, No. 223 &
'l1ms PlAT W.'1 HOT 3'°" l i l C!IOSSINC:s Of PIPD.JllCS OR t.oa.e. HOWl.NIO UONl'.ERlllC FlElO DATE 800' PACE(,) ORAWN SY: u..r.;s.1.1...
NICI $lJM'l'l1IC CO., l78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 i TBPL5 Finn Registration No. 100464-00
EXHIBIT "A-30"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 30
(VAQUILLAS RANCH A-6 WELLS No. 30, No. 83, & No. 228)
323.87 ACRES
WEBB COUNTY, TEXAS
I •
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I ~~t;
t.i
ERNEST C. GASSER '' '"ioi.,!;;
VAQUILLAS
-¢-
RANCH
A-6 No. 57
ABSTRACT 2607
I' §c!~
o~
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I'-----
N 89"15'20• E ,.. ~,37!5.43' I ----
I.. CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 -¢-A-6
VAQUILLAS
RANCH
No. 30
i...
' 26,622.79 ACRES (CALLED)
REl'AINED 323.87 ACRE UtlT '
~
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VAOUILLAS
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-¢-A-6 No. 228
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-¢- VAOUILLAS I c.c.s.D. & R.G.N.G. R.R.
ABSTRACT 1045
WEBB COUNTY, TEXAS
co. I'
RANCH ' '
H No. 162 '
I I
' ''
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~-----+-----------------------
GRAPHIC SCALE
.
• = = =I
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~-·:w.J-1 R.O. BARNESLEY
(Ill ~ET) ABSTRACT 2134
l Ill<~ - 1000F'I..
LEGEND Revision Do•
HOWLAND
ENGINEERING AND SURVEYING CO.
TllPEAm~-F-40ll'I 1N'LS,,...~H0.1004M.(ID
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' 04-09-13
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-- TIES
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ENGINEERING AND SURVEYING CD.
EXHIBIT "A-31"
FIELD NOTES
FOR
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 31
(VAQUILLAS RANCH A-4 WELLS No. 150, No. 167 & No. 227)
567.81 ACRES
A TRACT OF LAND CONTAINING 567.81 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 25,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1042; and Survey 273, C.C.S.D. & R.G.N.G.
R.R. CO., Abstract 1141, Webb County, Texas, and being more particularly described as
follows:
BEGINNING at a point which bears N 34°45'22" E, a distance of 820.70 feet, from the
Vaquillas Ranch A-4 No. 150 Well;
THENCE, S 01°11 '23" E, a distance of2,428.19 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°36'57" W, a distance ofl0,373.11 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°26'16" W, a distance of2,348.13 FEET, to a point for the Northwest
comer hereof;
THENCE, N 89°10'24" E, a distance of 10,341.47 FEET, to the POINT OF
BEGINNING and containing 567.81 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
SHEET I OF2
H:UIOWLAND\SURVEYJNG DEPARTMENI\Job.s\2013\22131.34-13\2213 l.34-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.O. Box451128 {78045) . Laredo, TX78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registratlon No. F-4097 i TBPLS Firm Registration No. 100464-00
T T
'
' SURVEY 26
VAQUILLAS r_:i
z
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I R.O. BARNESLEY
ABSTRACT 2133
RANCH
H No. 162
-¢-
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RANCH f;' ... "~
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-¢-H No. 115
@?.!
RANCH
ABSTRACT 1141 -¢- H No. 226
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VAQUILLAS - .. - .. •
RANCH I N J4"45'22" E
d A-4 No. 1 S7 VAQU\LLAS '!;;I 620.70'
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VAQU!LlAS RANCH LfASE 199129-001
26,622.79 ACRES (CALLED)
0
VAQUILLAS
RANCH
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RANCH
A-4 No. 150
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C.C.S.D. & R.G.N.G. R.R. co
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J. POJTEVENT
VAQUILLAS
RANCH
1 I•
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1 ABSTRACT 2061
. A-12 No.
(BHL)
1se-¢-
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C.J. BERGSTROM
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RANCH 0 1
ABSTRACT 2148
VAQUILLAS
VAQUILLAS
RANCH
-¢-A-4 No. 151
~ - J
GRAPHIC SCALE
2U° 1o::io 2o::io
• A-12 No. 168 1 I -¢- RANCH (llllUT)
• \ (SHL) 1 1 A-4 No. 121 , .... h .. 10001'\.
LtGE:NO RHl1!on Dale
HOWLANtt\9ENGINEERING ANO SURVEYING CO.
EXHIBIT "A-31
CONOCOPHILLIPS COMPANY
H 0
-¢-
• HORIZONTAL Wtu.
-•UNITUllE
SURrAet LOCATIOll
a WEU
,' 04-09-13
05-17-U
OCl-06-13
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1~1~11.~A- lon.T W.Y J78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. f.4097 ; TBPLS fl rm Registration No. 100464-00
EXHIBIT "A-32"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 32
(VAQUILLAS RANCH C WELLS No. 84, No. 103, No. 160, & No. 246 ST)
450.44 ACRES
WEBB COUt((Y, TEXAS
SURVEY 273
C.C.S.D. & R.G.N.G.
I N 89"3t5'S7" E
I•
R.R. CO. r- 1
131
.54,
"
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ABSTRACT 1141
•
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VAOUILLAS
-¢-
SURVEY 25
I•
RANCH c.c.S.D. & R.G.N.G. R.R. co. •
VAQUIUAS
A-12RANCH ""·
No. 168¥
(BHL)
A-4 No. 173
ABSTRACT 1042
I•
... VAOUIUAS
•
RANCH
I• ~~~
I..
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VAOUIUASQ
RANCH -¢- VAOUIUAS """"'
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<.,/I C No. 84 RErAINED 4eQ,44 N:;R£. UNIT
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ABSTRACT 2523 i' PO;r 01\
89"2&'29. 5.288.76'
•
•
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I: SURVEY 231
c.c.s.D. & R.G.N.G. R.R. co. •
11 ABSTRACT 1116
I•
[: •
GRAPHIC SCALE I•
T •
l Wh • llXXlR
I
LEGEND Rn!slon Oat•
HOWLAND ENGINEERING AND SURVEYING CO. $
= HORIZOHTAL \11£1..1.
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SURFACE LOCATION '
TIIPEA.~WI
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llllS PVoT llAV HOT St!O'll' ,l,U. CR0SSNCS Of PFllJNES CR aaLS. HCNIV"ID DQ.IEERN:
NICI SlJfM:l1'IG co_ IMC. ASS1M:S HO RESPOtiSIBU1Y ro 1.DCATE PIPfl.HE CR aaL C!K:!S9NGS.
FlaD OATE
'"''' PAGE"
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DRAWN SY: LAF.
~ni:s~~~~~~~~=r:D.tttlP~
COP\'RC>{T lfOWlNIO Dlc:fl~ .<>ill SIJIM.WIC CO~ INC. 2013CI
QI "' CHECK£D BY:
JOB No.
J.S.
221ll.JS ll
SHEET: 2 OF 2
HoaQI 'WWJ~~
&~~ [~\J; t;\i
ENGINEERING AND SURVEYING CO.
'· ~:&f::-r
EXHIBIT"A-33"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 33
(VAQUILLAS RANCH WELL A-10 No. 81, VAQUILLAS RANCH
B-1 WELLS No. 23, & No.120)
382.64 ACRES
A TRACT OF LAND CONTAlNING 382.64 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 233,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1117, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 42°39'42" W, a distance of 1,797.35 feet, from
the Vaquillas Ranch 8-1 No. 23 Well;
THENCE, N 89°08'54" E, a distance of 4,485.02 FEET, to a point under an existing
fence line, for the Northeast comer hereof;
THENCE, S 00°19'51" E, along an existing fence line, a distance of3,744.45 FEET, to
a point for the Southeast comer hereof;
THENCE, S 89°36'00" W, a distance of 4,459.86 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00°43'00" W, a distance of3,709.15 FEET, to the POlNT OF
BEGINNING, containing 382.64 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
I
'
~
SHEET! OF2
H:\HOWLAND\SURVEYING DEPARTMEN'Nobs\1013\21131.36-!3\22131.36-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box 451128 {78045) l Laredo, TIC 78041 P. 956.722.4411 F. 956.722.5414
TBPE Arm Registration No. F-4097 ! TSPlS Firm Registration No. 100464--00
EXHIBIT "A-33"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LfASE 199129-001 ~ RETAINED TRACT 33
(VAQUJUAS RANCH A-10 waL No. 81, VAQUJUAS RANCH B-1 WELLS
No. 23, &: No. 120)
382.64 ACRES
WEBB COUNlY, TEXAS
I
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I
SURVEY 24
SURVEY 25
I I
R.O. BARNESLEY
ABSTRACT 2134
C.C.S.D. & R.G.N.G. I
R.R. CO.
ABSTRACT 1042 I
l --·
I
POlllT or
~
---------- I N 89"08'54• E - -4-.485.02"
'
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SURVEY 232 ,?. I
C.J. BERGSTROM
ABSTRACT 2148
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I
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLEO) ~
."' ;, f- - - -1.201'- - - -'.:¢-
RErAIHED J82.M laf£. UNT :t
""
~~
VAQUlllAS
...'
RANCH
8-1 No. 23
==: l==-
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C.C.S.D. & R.G.N.G.
-61VAQUILLAS C.C.S.D. & R.G.N.G. R.R. co.
VAOUILLAS
§ R.R. CO.
RANCH C ABSTRACT 1117 ABSTRACT 1136
VAOUILLAS
No. 246 ST
(SHL)
WEBB COUNTY, TEXAS
RANCH
-r;f-1 No. 120 "'
RANCH
c No. 246 ST -¢-
(BHL) VAQUILLAS
RANCH
A-10 No. 81
-------
SURVEY 231
s 89"3fl'oo· w .... 4,4!5s.aa'
'
C.C.S.D. & R.G.N.G.
R.R. CO.
I
I
ABSTRACT 1116
I' 1•
SURVEY 234
' C.J. BERGSTROM
I• ABSTRACT 2146
' t•
I
GRAPHIC SCALE
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ENGINEERING AN) SURVEYING CO.
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' 04-09-IJ
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~ BASIS OF BOOING: G.P.S. Tx. South Central Zona, NA0.-27.
ms P\JiT llAY HOT SHC7ll' AU. tmlSSHCS OF P1'£1.JllES OR Cla.E.S. HOWl.NIO DICmEllll«; flEl.D DATE BOOK PAGE si DAAWN BY: LM.
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~lln':s:.C~R!~~~~J1LIP~ OR "'' '" "" CHECKED BY:
J0a No.
J.S.
221:::11.36-13
CIOl'l'RICHT HOWVllO ~ N'J ~c co., li'IC. :to\JC
SHEET: 2 OF 2
HOWLAND
ENGINEERING AND SURVEYING CO.
EXIDBIT "A-34"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 34
(VAQUILLAS RANCH A-8 WELLS No. 59, No. 66, &
VAQUILLAS RANCH A No. 86)
606.84 ACRES
A TRACT OF LAND CONTAINING 606.84 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1649,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1110, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 38°23'35" E, a distance of2,217.27 feet, from
the Vaquillas Ranch A-8 No. 59 Well;
THENCE, S 00°17'51" W, a distance ofS,027.60 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°24'12" W, a distance ofS,177.16 FEET, to a point for the Southwest
corner hereof;
THENCE, N 00°30'01" W, a distance of 5,115.58 FEET, to a point for the Northwest
corner hereof;
THENCE, S 89°37'46" E, a distance ofS,247.75 FEET, to the POINT OF
BEGINNING, containing 606.84 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
SHEET I OF2
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7615 N. Bartlett Avenue , P.O. Box451128 (78045) ! Laredo, TX78041 P. 956.722.4411 F. 956.722.5414
TBPE Firm Registration No. F4097 ; TBPLS Firm Registration No. 100464-00
.
EXHIBIT "A-34"
CONOCOPHILLIPS COMPANY
VAQUILI.AS RANCH LEASE 199129-001 N RETAINED lRACT 34
(VAQUILI.AS RANCH A-8 WELLS No. 591 No. 66. & VAQUILI.AS RANCH A No. 86}
606.84 ACRES
WEBB COUNTY, TEXAS
•• •• •
•
I• I• I•
• SURVEY 1646
O.A. & F.A. SITZ
• SURVEY 1648 •
I• ABSTRACT 3301 I• C.M. SAWYER
ABSTRACT 2441 I• ~
~
·,llBOOOllllG
• • •
1-
S 89"37'46• E 5:.Z.47.75'
lI ' ' -------
I
I
,.,-6/''
.,.,
SURVEY 1927 I
,_, ' '"'
I
T.M.R.R. CO.
ABSTRACT 1808 ~·
~·I
_,j>,..,/
'
I
I
~'?/'
I ~/
I
1/' '
I
~ -¢-------,,68'----
l
CONOCOPHILUPS COMPANY
...;j:
--------:a'
VAQUILLA.S RANCH LEASE 199129-00 I VAOUIUAS
26,622.79 ACRES (CALLED) RANCH 0 0:
~~N
...
RETAHD 608.84 AmE UNT A-8 No. 59
' t>
>- <
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i
z
SURVEY 1649
C.C.S.D. & R.G.N.G. R.R. co.
ABSTRACT 1110
VAOUJLLAS
RANCH
A-8 No. 66
-¢-
~
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.~
"!.,
"'"!:!
WEBB COUNTY. TEXAS
"' ·rn
~go:i
"'
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VAQUILLAS
1il" !:l -¢- RANCH
A No. 86
-·----- 15 89'24'12· w ... 5,1n.1e•
-------
•
SURVEY 1906
•
T.T. R.R. co.
ABSTRACT 3103
I•
• SURVEY 1653
I• C.C.S.D. & R.G.N.G. R.R.
ABSTRACT 1099
co.
•
I
GRAPHIC SCALE
=
bo------ 0 ~
= ·=I
( IN f'EU )
1 Inch• IOOOn.
·=I
LEGEND Ravlslon 0 ..1.
HOWLAND ENGINEERING ANO SURVEYING CO.
TBPEF\mRlglol'16onNO.f~ ~ftmR19ahblllo.ICOl6UD
0
-¢-
= HORIZONTAL WELL
•
SURFACt LOCAnoH
M~
= UN!T UH[
I 04-11 lJ
• FEHCE a-IE
761~N.Flallo!IA- t...-.ll<..7ll041 P,111511.nz.4411
www.l'>owlandcompanle11.com
-
'
- - - - - - - "' TIE'S
" " - " SURVEY UH!
WARNING: BASIS or BEAAING: G.P.S. T~. so ... th Zone, N.A.D. 27.
t.U.
MS P\AT W.Y liOT SHOii' ALL CROSSt!GS Of" l'IPWhG OR aa..r:s.. llOWlJJIO ENC1111£ERN;
HIO SUIM:'l'i'tG CO. lllC. .ISSl..::s NO JIC;PC»&Ell!IY ro l.OClTE P1PDJNt OR C08IL CllllSSHClS.
FlEUl DATE
'NA PAGE :s DRAWN SY:
NO QJ.&1 IS 1tER1'.BT MM)[ f!teN!IJHG OJRRDIT Oii M:f\£1.t. S!RlF>a'./latU;AAI, f!I: OllMRS>!P OR
U3SOfL n11S OAAllllf(l WNX txQ..l.!SMl.Y Rlll CCINOCOPliUJPS COIWNIT.
" "' CHECKED SY'
JOB No. 221J1.J7-1J
J.S.
~ ~ EHCN'.DiHD .lHO StJll\ll"l'N; i::o.. INC. 20130
SHEET:
' O' '
HOWL.A~~mJ
ENGINEERING AND SURVEYING CO.
EXHIBIT"A-35"
FIELD NOTES
FOR
CONOCOPRUJ.IPS COMPANY
VAQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 35
(VAQUILLAS RANCH A·ll WELLS No. 55, No. 58, No. 79 & No. 147)
640.00 ACRES
A TRACT OF LAND CONTAlNlNG 640.00 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129-001, 26,622.79 Acres (Called), situated in Survey 1651,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1112, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bearsN 46°43'15" W, a distance of799.66 feet, from the
Vaquillas Ranch A·l I No. 79 Well;
THENCE, EAST, a distance of 5,173.18 FEET, to a point for the Northeast corner
hereof;
THENCE, S 00°01'12" E, a distance ofS,422.60 FEET, to a point for the Southeast
comer hereof;
THENCE, WEST, a distance ofS,077.78 FEET, to a point for the Southwest comer
hereof;
THENCE, N 01°30'06" W, a distance of3,788.66 FEET, to a point for a deflection
right;
THENCE, N 00°04'11" E, a distance of 1,635.25 FEET, to the POINT OF
BEGINNING and containing 640.00 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
.;
SHEET I OF2
H:\HOWLAND\SURVEYING DEPARTMENl'Jobs\2013\22131.311-13\22131.38-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue ' P.O. 8oK451128 (78045) i Laredo, lX 78041 P. 956.722.4411 I F. 956.722.5414
TBPE Firm Registration No. F-4097 1 TBPLS Firm Registration No. 100464-00
EXHIBIT "A-35"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 199129-001 ~ RETAINED TRACT 35
(VAQUILLAS RANCH A-11 WEU.S No. 55, No. 58, No. 79, & No. 147)
640.00 ACRES
WEBB COUNTY, T£Xlo.S
SURVEY 1647
C.C.S.D. &
i
R.G.N.G. R.R. co.
i
I
IT
SURVEY 1646
~-·
ABSTRACT 1101
BLAS PENA
ABSTRACT 2396
i
N 46"43'15• W ;$· H
_ c_799.66'
- -,- - .. - - - .... -EAST .:-g:;'13.1's~ - .. - .... - .... -
;, ' j I
~ ',,, ~
- • -~---,.,..-
"°"''""- VAQUILLAS
l RANCH
SURVEY 1664
. A-11 No. 79 W.H. TAYLOR
ABSTRACT 2877
f-------~
i A
V
VAOU!UAS
RANCH
A-11 No. 55
CONOCOPHIUIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001
26,622.79 ACRES (CALLED)
RETAINED 540.00 ll;flE. UNTT -¢-
VAQUIUAS
RANCH
A-11 No. 58
SURVEY 1651
C.C.S.D. & R.G.N.G. R.R. CO.
ABSTRACT 1112
WEBB COUNTY, TEXAS
-¢-
-- .. --- 0
u
VAOUILLAS
RANCH
SURVEY 1650 A-1 l No. 147
C.M. SAWYER
ABSTRACT 2444
WEST ,.. ~.Cf77.7B'
.-p-• VAQUIUA~
SURVEY 1652
------~
W.H. TAYLOR
ABSTRACT 2876 ~
I RANCH
1 L No. 196
GRAPHIC
"""·-- ....
~UT
1
l t1 n:a)
1neh • 1ooon
T
LEGEND Revl~on Dote
HOWLAND ENGINEERING AND SURVEYING CO.
T'BPE F1tm Regll- tb. F-4097 TBPUI Am~ Na. 10G464-0)
0
-¢-
-~,--
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= WW.
: ~EU/1~£
1
2
3
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05-17-IJ
05-06-lJ
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7B\5N.Bo_A_ ~lX.7BO't'l'ING CO., II<. 2'1130
SHEET: 2 OF 2
HOWlt~~~
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-36"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
V AQUILLAS RANCH LEASE 199129-001
RETAINED TRACT 36
(VAQUILLAS RANCH A-4 WELLS No. 121, No. 151, No. 173 & No. 247)
367.60 ACRES
A TRACT OF LAND CONTAlNING 367.60 ACRES, more or less, being out of the
Vaquillas Ranch Lease 199129·001, 26,622.79 Acres (Called), situated in Survey 25,
C.C.S.D. & R.G.N.G. R.R. CO., Abstract 1042, Webb County, Texas, and being more
particularly described as follows:
BEGINNING at a point which bears N 72°18'31" W, a distance of 1,190.94 fee~ from
the Vaquillas Ranch A-4 No. 173 Well;
THENCE, N 89036'57" E, a distance of 5,471.02 FEET. to a point for the Northeast
comer hereof;
THENCE, S 01°11'25" E, a distance of2,927.97 FEET, to a point for the Southeast
comer hereof;
THENCE, S 89°08'54" W, a distance of374.16 FEET, to a point for a deflection right;
THENCE, S 89°56'18" W, a distance of 5,133.27 FEET, to a point for the Southwest
comer hereof;
THENCE, N 00'28'50" W, a distance of2,901.83 FEET, to the POINT OF
BEGINNING and containing 367 .60 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVh"YING DEPARTMENI\Jobs\2013122131.39-l 3U213 l .39-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue 1 P.O. Box451U8 (78045) : Laredo, lX 78041P.956.722.4411 F. 956.n2.S414
TBPE Arm Registration No. F-4097 I TBPLS Firm Registration No. 100464-00
EXHIBIT "A-36"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 199129-001 N RETAINED TRACT 36
(VAQUIUAS RANCH A-4 WEUS No. 121, No. 151, No. 173, & No. 247)
367.60 ACRES
WEBB COUNTY, TEXAS
: -¢- VAOUILL.AS 1 ;~
~------= """:~-::;.,.,, ---:.:=··+ .1~
0
u
"'
(")~:;jl
~r_;::!
~:z; t> A-4 No 167 _r'-r_ A- 4 No. 227 RANCH 1
Ct:~~ ' (BHL} ¥ -¢- A-4 No. 150-¢-
::>.:d~
' I '.;!l1'
I'
VAOUlw.P
"' .< RANCH JH
A-4 No. 167
"cjoi (SHL)
cj
'
I• SURVEY 25
C.C.S.D. & R.G.N.G. R.R.
ABSTRACT 1042
co .
• N 72'18'31" W
WEBB COUNTY. TEXAS
__ r l,190.94'
~--~--_;;,~_--_-1-f~-~ol~~....::..;:::.::::""-.:;..;;;-"""..:::::;~~~~~~~--r
N 88'38'S7• E - &.471.02'
I - -... 1:)1
___ .lJ.~:.-~~ VAQUIUAS
•' >,.< RANCH
A-4 No. 173 CONOCOPHILUPS COMPANY
VAQUIU.AS
RANCH
A-12 No. 168--1"-<_
(BHL) ¥
1:l
0
::!
• VAOUILLAS
VAQUILLAS RANCH LEASE 199129-001
26,622.79 ACRES {CALLED)
RETAINED 357.tlO N:iP£. UNIT
!•
w
VAQU!U.AS
VAOUILLAS
RANCH
0 "
ii
RANCH
-¢-A-4 No. 121
RANCH
-¢-A-4 No. 151
VAOUJLLAS
A-12 No. 168
(SHL)
Iii RANCH
!! A-4 No. 247
0 (SHL)
z
VAOUILLAS
RANCH
A-4 No. 247·
·YI"
(BHL) .fl.
1>-~~~~~~~~~~~.;.....;_-"'-~~~~~~~~-9-r-o-~---
s 89'58'1s• w- 5,133.27"
S 89"08'M• W
SURVEY 987 A VAQUJLLAS 374.16'
J. POITEVENT y RANCH I
C No. 160
ABSTRACT 2061
SURVEY 232
C.J. BERGSTROM
VAQUILLAS ABSTRACT 2148
RANCH
-¢- C No. 84
'
'
v~~2~ j
+=I
- •• - •- i==i==i==~==2==i==i==i===i== C No. 246 ~x----X
VAOUILLAS (BHL) ffi VAQUILLAS I
RANCH
C No 103 _,.i.,__
V
~ RANCH
VAQUILl.AS C No 246 &
RANCH No 246 STI
I
1 I
-¢-
l ~~:~~~:'.
C No. 246 ST1 (SHL)
=~ ~-~-~-~-8~-=~:.~R~,~ .!.,i ~i -i ~i ~i ";, ~nAL~E~ ~ ~=~I - "" - -- - "" - - "~L~" - ..
L£GEHO R.vlslon Doi•
HOWLAND ENGINEERING AND SURVEYING CO.
ll!l'E~~Ho.F-<097 T51'\.SAm~HD.I~.
_
0
-¢-
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SURFACE LDC.\TIOH
• WW.
....._ _ ,. UMIT LIKE
I 10-18-IJ
74151<.8allldli_..• l.ando.1X..1ll041 P.9'6.mMl_l -~•- " F"ENCE LtlE
www.howlandcompanles.com ------- = 11£5
- • • - " SURV[Y UHE
~ &.SIS OF BEAA!NG: G.P.S. Tic. South Zone. N.A0.-27.
'MS P\AT ""'T llOT SfOW H..L ~ OF PfflJKES OR Cla..ES. l!O'll'l.AHtl , ~
AHO SIJRVl:THP CO. ttC. AS9.lilES NCI FIESPCIHSlllllY Tll L.OC.'-TE PPElM OR ClaL Cl!OSSNGS.
~r!s~~~~~~rtt.OMil'.JlSHPOR
FJELD CATE
"'
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"''
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. DRAWN BY:
CHECKED BY:
SJ.I.I
J.S.
JOB No. 221.'.U.39 13
CCIP'r1'llCKl' tKlWlNE DDNEIRll-IG N(J SUIM."!1NG CO.. N:. 20\JC
SHEET: 2 or 2
EXHIBITD
PARTIAL RELEASE OF OIL AND GAS LEASE
STATE OF TEXAS §
§
COUNTY OF WEBB §
WHEREAS on January 9, 1988, Vaquillas Ranch Company, Ltd., Vaquillas Unproven Mineral Trust and
Vaquillas Proven Mineral Trust acting therein through its general partners, J.O. Walker, Jr., Gene S. Walker,
Evan B. Quiros and E. Walker Quiros, as Lessors, and Conoco Inc., as Lessee, entered into an Oil, Gas and
Mineral Lease dated November 1, 1987, covering 6,740 acres of land, more or Jess, hereinafter referred to as
Mthe Lease,· and;
WHEREAS the Lease description was amended May 31, 1988, by deleting the acreage covered from
6,740 acres, more or less, to include a revised total of 4,800 acres, more or less, as evidenced by
Memorandum of Oil and Gas Lease, dated June 16, 1988; recorded In Volume 1303, Page 886 of the Real
Property Records of Webb County, Texas.
WHEREAS the Lease has also been amended from time to time, as reflected in the Public Records of
Webb County, Texas, and all references to the Lease herein shall be to the Lease as amended_
NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt of which Is hereby acknowledged, ConocoPhillips Company, does hereby
RELEASE, RELINQUISH and SURRENDER unto the Lessor, all of its right, title and interest and estate in the
Lease SAVE AND EXCEPT THOSE LANDS AS MORE PARTICULARLY DESCRIBED ON THE EXHIBIT
"A," AND FURTHER DESCRIBED ON EXHIBITS A-1 THROUGH A-5 ATTACHED HERETO AND MADE A
PART HEREOF.
Provided, however, Lessee shall have and retain full rights of access and all easements of ingress and egress
over and across those lands covered by the Lease, including the lands which are hereby released, for the
production of oil and gas and operations in the acreage not hereby released, and Lessee shall not be required
to remove or relocate any pipelines, utilities, roads, tank batteries, or other surface equipment or installations
from any portion of the Lease or lands herein released for so long as same continues to be used for the
exploration, development or operation of such portions of the Lease that continue in force and effect
This instrument is binding upon and inures to the benefit of the parties hereto, their heirs, successors and
assigns.
~ VOlmne: 3517 Page:44'1 -453
Executed this n day of f~\o .... 'Qc-1I • 2014. Doc# 1194187
Doc Type: PARTIAL RE.£ASE OFOIL & GAS LEASE
Record Dllte: 2125/201.C 11:28:17 AM Record By: MIC
Fees $71.00
Margie Ramirez Jbaml. Webb County Clerk
LESSEE:
::~oc~
Michael P. Rose
Attorney-In-Fact
25757HJ01
ACKNOWLEDGEMENT
STATE OF TEXAS §
§
COUNTY OF HARRIS §
ACKNOWLEDGED BEFORE ME, this rl "' day of F"... lon••"f • 2014, by
Michael P. Rose, Attorney-in-Fact for ConocoPhillips Company, a Delawar; orporation, on behalf of said
corporation.
257577-001
I
OVERALL EXHIBIT "A" I
: \_____ -,--y !
, I
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH RETAINED TRACTS 1-5
I . !' I
CONTAINING A TOTAL OF 2,379.77 ACRES
1-- :
i i I '
I ill
~~~I
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I I !
A-t
: I
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:
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L_ __ j___
I
------- .:O.lo ---i_ i i i
--._, - _____ j______ _j__ _____ +I ----
Acres 1 ' '
L__ L ___ LJ'f~
598.911
kres :
L ___ _
GRAPHIC SCALE
30XI 0 I~ .3000 ~
'°9--oj;;j-! I
CONOCOPHILLIPS COMPANY
HOWLAND
ENGINEER/NO AND SURVEYING CO.
TBPERmllrlglolr-.llo.~ TBl'l.5Fm~llo.1-
VAQUILIAS RANCH RETAINED
TRACTS BASE lilAP
71115N.-A....,. lAnldOo TX.7'°"1 P.llM.12ZM11
www.howtandcompanJas.com
LEASE 257577-001
WEBB COUNJY, TEXAS
WARNING: BASIS OF 8£.1.RING: C.P.S. l•. South Zone, NAO. 27.
ms Pl.AT MAY HOT Sim MJ. CRCSSll'fCS Of Pf'(Ll'£S OR eo.au:s. IKJllll..NID ~c DRAWN BY: LAf./S.l.M.
10-11-IJ
>HD ~ CO.. INC. J.SSULS HO ReiPCl'ISmilY TO LOCATE PF£l.K Cll CAtl.t CROSS1NCS.
~n':sH~~~~,&'~u.W"~ FEE~ OR "" "" CHECKED SY: J.S.
JOB No. 22160-13
SHEET: 1 Of 1
HOWLAND
ENGINEERING AND SURVEYING CO.
EXHIBIT "A-1"
F1ELDNOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 257577-001
RETAINED TRACT 1
(VAQUILLAS RANCH L-6 WELL No. 211)
328.36 ACRES
A TRACT OF LAND CONTAINING 328.36 ACRES, more or less, being out of the Vaquillas
Ranch Lease 257577--001, 6,740.00 Aaos (Called), situated in Survey 1956, H.B. Brock, Abstract
2560, Webb County, Texas, and being more particularly described as follows:
BEGINNING at a found monument at fence comer, which bears N 70°15'08" W, a distance of
1,699.67 fee~ from the Vaquillas Ranch L-6 No. 211 Well;
THENCE, N 89°20'09" E, along an existing fence line, a distance of3,112.47 FEET, to a point
for the Northeast comer hereof;
THENCE, S 00°38'14" E, a distance of 4,600.71 FEET, to a point under an existing fence, for
the Southeast comer hereof;
THENCE, S 89030'49" W, along an existing fence line, a distance of 1,416.19 FEET, to a point
for a deflection right;
THENCE, S 89035'52" W, continuing along said existing fence 1ine, a distance of 1,696.63
FEET, to a found 60 D nail at fence comer, for the Southwest corner hereof;
THENCE, N 00°37'59" W, continuing along an existing fence line, a distance of 4,588.56
FEET, to the POINT OF BEGINNING, containing 328.36 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
,:
·'
SHEET! OF2
H:\HOWLAND\SURVEYING DEPARTMENNobs\2013\22160.1-13122160.1· 13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue ; P.O. Box 45112B {78045) : Laredo, TX 78041 P. 956.722.4411 F. 956.n2.5414
TBPE Firm Registration No. F-4097 : TBPLS Arm Registration No. 100464-00
EXHIBIT "A-1"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LfASE 257577-001
RETAINED TRACT 1
(VAQUILLAS RANCH L-6 WELL No. 211)
328.36 ACRES
WEBB COUNTY, TEXAS
•
' 1
I SURVEY 2096
'
' D.C. FANNING
I'
J
ABSTRACT 2228
-
' (~
- I ---------- N 89"20'09• E ,.. 3112.47'
Found Monl.lll'lllllt
--___,,.,,, ,-~~-
t
1m
0 Fence Comer '6.99.a) ..Jt I
-- '¢-VAQUILLAS
-------T.5~i3.------::: RANCH
SURVEY 1955
G.C. & S.F. R.R. CO.
L-6 No. 211 ABSTRACT 1326
I CONOCOPHILLIPS COMPANY
,_
J~ ~
VAQUILLAS RANCH LEASE 257577-001
~ 6,740.00 ACRES (CALLED)
!§ RETNNED 328.38 ACRE UNfT
~ l
l
......
SURVEY 1956
s];;'" ~
VAOUILLAS RANCH
A-3 No. 200 (BHL)
D.C. FANNING I! "' -lb
ABSTRACT 2591 z SURVEY 1956 VAOUlUAS RANCH
H.E. BROCK A-3 No. 200 (SHL)
ABSTRACT 2560
WEBB COUNTY. TEXAS
r~round
- Ko~ 0
ooFence
o Comllr
' ' ' ' x- s 89"~·~2·
1,696.63'
w - )ti
><
1 s 89"30""'9.
1,416.19'
w
SURVEY 2057
I:
C.T. & M.C. R.R. CO.
ABSTRACT 965 II
1: SURVEY 2056
"lI, C.T. & M.C. R.R. CO.
ABSTRACT 2680
VAQUILLAS RANCH
A-5 No. 205
(SHL)Q
VAQUILlAS RANCH
-¢- A-5 No. 205
(BHL)
VA~~~-¢.
A-5 No. 166
liI:
II
~
• =
~--"'wiJ-'
GRAPHIC SCALE
~
(IN fE£r)
·=. -I
0 VAQUlUAS .•RANCH
A-5 No. 230
(SHL)
"
1 l'><.h •
IDOOF\.
LEGEND Rtvblcn Dell
HOWLAND
ENGINEERING AND SURVEYING CO.
TBPE Fm\ Rogllt_, ~ f..Q11 Tlll'l.S llm ~HO. ICICM64-00 _,
0
-¢- =WW.
., HORIZONTAL WELL
"' UNIT UHE
SURFACE LOCATION ' 04-10-ll
,. FOIC£ LIKE
761,,t.lllllldA--.. ~ 1)(.1l!G41 P.li5a.122Ml1
------- =TIES
www.howl11ndcomp11nles.com
WARNING: BASIS OF B£AAING: GJ>.S. b. So111h Zone, NAO. 27.
-- " SURVEY UNE
rntS PlAl' W.T NOi' 9llW N.1. CROSStlc:s OF PIP£l.Jlml OR CAllUS. 110W1.N10 ~
.-HO $l.IFN£TtlG CO., tfe. ASSlAIES HO RESPOtGaUTT TO l,DCU'[ Pffl.JI£ OR CAll..E ~
FIELD DATE
""'• t'AGE s DRAWlll BY: A.LC.
NO CUit.i 15 KEREBT WOE: ~ CU!!1oa OR H;T\W. SURI"~ f'EE ~ Oii
USS0R. ltn QRla'J'tG WOE: aa.\ISVELV FOR CCitfOCOPKUW'S COllPAlfT.
CllPYlllQIT HC7M..IHD DONEERttC Nm ~CO., tc. 2CllJC
" "" "'' CHECKED BY: J.S.
JOB No. 22160.1-13
SHEET: 2 OF 2
Ho~~ .~~\ ~"ii,l~I[~®
,--~~~~ ,1J~~f?
ENGINEERING AND SURVEYING CO.
EXHIBIT"A-2"
FIELDN01ES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 257577-001
RETAINED TRACT 2
(VAQUILLAS RANCH L4 WELLS No. 95 & No. 105)
172.43 ACRES
A TRACT OF LAND CONTAINING 172.43 ACRES, more or less, being out of the Vaquillas
Ranch Lease 257577-001, 6,740.00 Acres (Called), situated in SE \4 of Survey 2060, C.C.
Marshall, Abstract 3329, Webb County, Texas, and being more particularly described as follows:
BEGINNING at a point which bears N 50°34'35" W, a distance of 490.36 feet. from the
Vaquillas Ranch L-4 No. 95 Well;
THENCE, N 89°18'10" E. a distance of 1,350.57 FEET, to a point for a deflection right;
THENCE, S 89°39'06" E, a distance of 1,338.93 FEET, to a point on an existing fence line, for
the Northeast comer hereof;
THENCE, S 00°18'08" E, along an existing fence line, a distance of2,76S.12 FEET, to a found
fence comer post, for the Southeast comer hereof;
THENCE, S 89°15'36" W, along said existing fence line, a distance ofl,691.33 FEET, to a
point for the Southwest comer hereof;
THENCE, N 00°48'19" W, a distance of 1,517.91 FEET, to a point for a deflection right;
THENCE, N 00"22'53" E, a distance ofl,273.82 FEET, to the POINT OF BEGINNING,
containing 172.43 acres of land, more or less.
Basis of Bearing: G.P.S., TX. South Zone, NAD-27
SHEET I OF2
H:\HOWLAND\SURVEYrNG DEPARTMEITT\Job$\20\ 3\22 I 60.2- l3\22160.2- I 3.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue P.O. Box 451128 (78045) ! Laredo, 1X 78041 P. 956.722.4411 F. 956.722.5414
TBPE Finn Registration No. F-4097 • TBPLS Firm Registration No. 100464-00
EXHIBIT "A-2"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 257577-001
RETAINED TRACT 2
(VAQUIUAS RANCH· L-4 WEU.S No. 95 & No. 105)
172.43 ACRES
WEBS COUNTY, TEXAS
I A VAOUlllAS
¥ RANCH
A-5 No. 126
.
I SURVEY 2058
C.T. & M.C. R.R. CO .
A-2880
.
I
L
I It
11 --- .. -
M
.. -·.-¢- ~:=L~~ ·--··-. -- .---.,---- -----1f-------------f·-
RANCH
A-5 No. 118
VAQUILLAS
A-5 No. 101 I
:
0 l ~1·c..{j:
i
SURVEY 2080 ~ o~~ ~
~~: /f.~1i
C.T. & M.C. R.R. CO.
:
ABSTRACT 3330
VAQUILLAS RANCH
,------1
I I .,«01
~;:gE-<
Ii
A-5 No. 40
0
I
1 SURVEY 2060
R.D. GUINN
I
I
1
=> Od Cll
rn .___:
~
~ j
r~~ I ABSTRACT 3331 ti
~~: N 89'18'10• E
- - - - - - - - - - ~3°4·3s~·'°w~_.:-,....,.,:r,1:,,"""~".o~r--.1..-....:1.i:•::o:~::::
•3··---1
i S 89'39'oe• E
SURVEY 1884
M.E. WIDEMAN
49Cl.36' ~;;;i VAQUILLAS RANCH
ABSTRACT 2501
ti.I tJBi.C:} L-4 No. 95
i:l ii . (SHL)
SURVEY 2060
R.D. GUINN "§_. ,. ;
~
-¢-vAOU!UAS RANCH
L-4 No. 95
ABSTRACT 3332 (BHL)
z
,-~ ~
1
1
tOZM
ozM
--: • •
CONOCOPHILUPS COMPANY
6,740.00 ACRES (CALLED)
R£TAINED 172."3 ACRE
111
VAQUILLAS RANCH LEASE 257577-001 ~
co
UN~
8
§
00 se-o at"'"
:-~ SE 1/4 OF
"'
~ c; U
!> · 01
§:;j- VAQUIL~ RANCH SURVEY 2080
Cow. C. MARSHA!L
o:: A E-< z L- 4 No. 1OS ABSTRACT 3329
=>~ r/l
rn !:J WEBB COUNTY, TEXAS
LI---·-·-·-·-· _L --··--''-----:s'""'B9"""1o"JO"'•..-·w:::-'.~~..~.:<,;;1-;.JJ~-~,_-r- -----------
found Fen~ I
•'
Comer Post
NORTH 1/2 SURVEY 1836
P.K. CONNOWAY
ABSTRACT 2187
I
'
'
I SURVEY 260
MARY E. WIDEMAN
' ABSTRACT 2504
'
GRAPHIC SC~ - - - - - - - - - -S:: ~-- - ---i
k-.JJ-; i ~~J:~ :I
1
T
< IN nu I ABSTRACT 2137
I lll<:h • 1000F\.
Ravlalon
LEGEND
"'"
HOWL.ANrE
ENGINEERING ANO SURVEYING CO.
0
-¢-
,. HORIZOKTAI.. WELL
stlRl'ACt LOC4l10H
wru. ,' 04-11-13
"
27-1J
TllPEflm~No.l409l' TllPLSflm~No..1(1(14114-00
7&\0N.->-- ~TX.111C4• P.$$8.722M11
www.howlandcompanles.com
-·-·-
..
------
UNIT UHE
rENC£ UH[
n"'
5U)IVEY I.JN[
WARNING: BASIS OF BEARING: G.P.S. T~. South Zone, NAD.-27.
·~'
'lllS PW' l&Al' NOT SllOW .0.U. CROSSflCS Of PPDJH£5 OR CAIUS.. lfllWl.AIE £NCltlECJl!NG flM DATE l'AGE s DRAWN BY: A.LC.
N't/) $UR't'E'l'flC co. tlC. ...ssu.1ES 110 ~BUT'I' TO \.DCAn: PPD.N: OR CAa( ~
HO a>!lol IS Hl1!EllT WDE RtCAIUllH!l Clf!R£M1' OR ACf\IAL SURfJa:/lllHO!Al fU °""'ER!MP OR
1ISSOR. n11S l;IRl.ln78041 P. 956.722.4411 f. 956.722.5414
TBPE Firm Registration No. F-4097 ; TBPL5 Arm Registration No.100464-00
EXHIBIT "A-3"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LFASE 257577-001
RETAINED TRACT 3
(VAQUILLAS RANCH L WEUS No. 129, No. 137, No. 171, No. 135 & No. 196}
640.00 ACRES
WEBB COUNTY, TEXAS
I
'
- "' - I'
- BC\J '' ' SURVEY 1665
c.c.s.n. &
"'
CD~
>oc:!lit;
• ::::
SURVEY 1664
W.H. TAYLOR
I R.G.N.G. R.R. CO.
ABSTRACT 1124
~~ci~ ABSTRACT 2877 '
~~ ·e-. ' '
::=> u
rt.I
:z; rJJ
C?~
I' I'
"'
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WUUNG
N 89"59'M• E ,.. S,380.33'
,
-¢- t
.'
&~ ......
!
VAOUlllAS
~ ~-t.~q\.,t
~
RANCH
.... ____
f,,.~ ..
A-11 No. 147
' ,
I
CONOCOPHlLLIPS COMPANY -¢-'.:.--"~---·
VAQUllt.AS RANCH LEASE 257577-001 VAQUILl.AS
6, 740.00 ACRES (CALLED)
RETAINED MO.OD ACRE UNIT
RANCH
L No. 137
I
~ ~
~
!i
"l } VAOUIUAS
..~
.. RANCH
L No. 196
SURVEY 1663
..
~------
$!;;
I
C.C.S.D. & R.G.N.G. R.R. co.
"'
"'"',._ ABSTRACT 1123
~sre !! WEBB COUNTY, TEXAS
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EXHIBIT "A-4"
CONOCOPHILLIPS COMPANY
VAQUIUAS RANCH LEASE 257577-001
RETAINED TRACT 4
(VAQUJUAS RANCH L WELLS No. 134, No. 136, No. 140, &: No. 190)
598.98 ACRES
WEBB COUNTY, TEXAS
i SURVEY 1663
VAQUIUASi.yr
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C.C.S.D. & R.G.N.G. R.R.
ABSTRACT 1123
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ABSTRACT 1122
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EXHIBIT "A-5"
FIELD NOTES
FOR
CONOCOPHILLIPSCOMPANY
VAQUILLAS RANCH LEASE 257577-001
RETAINED TRACT 5
(VAQUILLAS RANCH L WELLS No. 138, No. 139, No. 133 & No. 188 ST)
640.00 ACRES
A TRACT OF LAND CONTAINING 640.00 ACRES. more or less, being out of the Vaquillas
Ranch Lease 257577-001, 6,740.00 Acres (Called), situated in the West Y2 of Survey 1662, R.E.
Farr, Abstract 2230; and Survey 1652, W .H. Taylor, Abstract 2876, Webb County, Texas, and
being more particularly described as follows:
BEGINNING at a point which bears S 41°48'58" E, a distance of782.90 feet, from the Vaquillas
Ranch L No. 138 Well;
THENCE, N 80°01'00" W, a distance of 1,834. 72 FEET, to a point for the Southwest comer
hereof;
THENCE, NORTH, a distance of 1,133.33 FEET, to a point for an exterior comer hereof;
THENCE, EAST, a distance of97.l2 FEET, to a point for an interior comer hereof;
THENCE, NORTH, a distance of 5,125.38 FEET, to a point for the Northwest comer hereof;
THENCE, S 89°33'23" E, a distance of 5,644.97 FEET, to a point for the Northeast comer
hereof;
THENCE, S 00°07'00" E, a distance of 4,247.26 FEET, to a point for an exterior comer hereof;
THENCE, WEST, a distance of3,943.78 FEET, to a point for an interior comer hereof;
THENCE, S 00°00'05" E, a distance of2,285.82 FEET, to the POINT OF BEGINNING,
containing 640.00 acres of land, more or less.
Basis ofBearing: G.P.S., TX. South Zone, NAD-27
SHEET 1 OF2
H:\HOWLAND\SURVEYmGDEPAR'IMEITTUobs\2013\22160.5-13\22160.5-13.doc
www.howlandcompanies.com
7615 N. Bartlett Avenue : P.O. Box451128 (78045) : Laredo, lX 78041P.956.n2.4411 F. 956.722.5414
TBPE Firm Registration No. F-4097 ; TBPLS Firm Registration No. 100464-00
EXHIBIT "A-5"
CONOCOPHILLIPS COMPANY
VAQUILLAS RANCH LEASE 257577-001
RETAINED TRACT 5
(VAQUIUAS RANCH L WELLS No. 133, No. 138, No. 139 & No. 188 ST)
640.DD ACRES
WEBB COUNTY, lEXAS
SURVEY 1650
-- --- ---- -- ------ --------
C.C.S.D. &
R.G.N.G. R.R. CO.
ABSTRACT 2444
SURVEY 1652
SURVEY 1653 W.H. TAYLOR
C.C.S.D. & ABSTRACT 2878
R.G.N.G. R.R. CO. CONOCOPHILLIPS COMPANY
ABSTRACT 1099 VAOUILtAS RANCH
LEASE 257577-001
6,740.00 ACRES (CALLED)
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VAQUJLlAS RANCH
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ABSTRACT 2230 VAQUIUAS RANCH
WEBB COUNTY, TEXAS L No. 188 ST
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RAILROAD COMMISSION OF TEXAS
OFFICE OF GENERAL COUNSEL
OIL AND GAS DOCKET IN THE VAQUILLAS RANCH (LOBO
NO. XX-XXXXXXX CONS.) FIELD, WEBB CO~NTY, TEXAS
FINAL ORDER
AMENDING FIELD RULES FOR THE
VAQUILLAS RANCH (LOBO CONS.) FIELD
WEBB COUNTY, TEXAS
The Commission finds that after statutory notice In the above-numbered docket
heard on September 23, 2010, the presiding examiner has made Id.
6
16 TAC § 3.38(b)(2)(A) (Ex. A-2 to Ringuet Aff.).
7
Id.
8
Id.
9
Conoco’s Resp. to Interrogs. Nos. 16 & 17 at p. 8. (Ex. A-3 to Ringuet Aff.).
10
Ex. B-2 & B-3 to Smith Aff.
11
Ex. B-2 & B-3 to Smith Aff.; Exs. C & D to Conoco Motion.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 5
of 23,671.63 acres.12 This stands in sharp contrast to the 8,320 acres retainable on the
basis of 40 acres per well. Conoco thus wrongfully claims title to 15,351.63 acres of the
Reverted Minerals. Conoco’s wrongful claim of title to these disputed minerals forced
Vaquillas to file this case.
In support of its argument that it is entitled to retain 640 acres per well, Conoco
argues that the Commission did not “establish” 40-acre units because the units
established by the special field rule for the Vaquillas Ranch (Lobo Cons.) Field only set
out the minimum amount of acreage for drilling units required to drill a well. Conoco
also suggests that the 40-acre units established by the special field rules for the Vaquillas
Ranch (Lobo Cons.) Field do not trigger the exception set forth in Paragraph 18 because
they are not different than the 40-acre units established by the statewide rules. Each
contention misses the point and requires that certain language be ignored and that other
words be added to the Leases, contrary to accepted rules of contract instruction.
II. SUMMARY JUDGMENT STANDARD
This is a “traditional” motion for summary judgment, filed pursuant to Rule
166a(c), as to certain of Vaquillas’s claims against Conoco. “[T]here is no genuine issue
as to any material fact and [Vaquillas is] entitled to judgment as a matter of law on the
issues expressly set out in the motion.”13
12
Conoco MSJ at Exs. C and D.
13
TEX. R. CIV. P. 166a(c).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 6
III. BACKGROUND
A. The purpose of an oil and gas lease, as well as a retained acreage clause, is to
develop property to produce minerals.
An oil and gas lease is, at its core, a bargain struck by a landowner/lessor to have
developed the hydrocarbons beneath his land with another who has the experience and
capability to do so by undertaking the complex process of drilling and producing those
hydrocarbons.14 The landowner/lessor wants the mineral value of the land developed; the
oil and gas company/lessee wants the opportunity to make a profit. In order to have their
minerals developed, landowners/lessors generally must transfer the rights to explore,
drill, produce, and market the minerals to an oil and gas company with the skill and
financial ability to do so, such as Conoco.15 The oil and gas lease is the instrument that is
almost invariably used to transfer these rights to the oil and gas company.16 In return for
the risk assumed by the oil and gas company, it receives the lion’s share of the profit
derived from production and a generous time period (typically so long as production is
obtained and maintained in paying quantities) within which to continue operations on the
lease.
Absent an express limitation in the lease, a lessee’s rights under an oil and gas
lease may continue, as to the entire property, for an indefinitely long period of time. This
is the case because leases are typically structured so that if oil or gas in paying quantities
is found during the lease’s primary term, the oil and gas company’s rights to operate will
14
1 Ernest E. Smith and Jacqueline Lang Weaver, Texas Law of Oil and Gas § 4.1(B) (2014).
15
Id.
16
Id.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 7
continue for so long thereafter as any well is producing oil or gas in paying quantities on
the leased property.17
Oil and gas leases frequently contain a retained acreage clause that provides
operators with the choice and flexibility to develop the acreage to a specified density, or
to not do so and have acreage revert to the landowners/lessors. The retained acreage
clause also helps the landowners/lessors ensure that his property is fully developed within
a reasonable period of time, by allowing development of reverted acreage by another
lessee.18 In specifying the density for development, the clause may provide for reference
to Railroad Commission rules.19
B. Spacing, density, and proration units.
The Railroad Commission is responsible for preventing waste of the state’s oil and
gas natural resources and protecting the correlative rights of mineral owners, and it
adopts statewide rules and special field rules as means to accomplish this end.20 Special
field rules for a given field (reservoir) are commonly referred to simply as “field rules.”
Field rules typically address, among other things, spacing requirements. The
Railroad Commission’s spacing requirements typically establish the minimum distance a
well can be located to the nearest lease line, property line, or subdivision line, and to
other wells on the same lease completed in the same reservoir. 21 Spacing in effect
17
Id.
18
1 Smith & Weaver § 5.2(B)(3).
19
1 Smith & Weaver § 5.2(B)(3) (citing ConocoPhillips Co. v. Ramirez, 2006 WL 1748584 (Tex. App.—
San Antonio 2006, no pet.) (mem. op.).
20
R.R. Com'n of Texas v. WBD Oil & Gas Co., 104 S.W.3d 69 (Tex. 2003).
21
16 TAC § 3.37.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 8
mandates that a certain number of acres be allotted to a given well, and is intertwined
with “density.”
The Railroad Commission’s “density” requirements govern the number of wells
that may be drilled on a given amount of acreage in a reservoir.22 The density
requirement does so by prescribing the minimum required size of the “drilling unit” – the
minimum number of acres the operator must have to drill a well.23 This is the essential
nature of the drilling unit. The “drilling unit” is on occasion also referred to as a “spacing
unit” or a “development unit.”24 Such units are by their nature minimum-sized units,
because they prescribe the minimum acreage required to obtain a Railroad Commission
permit to drill a well. An operator may always drill a well with more acreage than the
minimum.
The Railroad Commission also regulates production levels to prevent waste and
protect correlative rights. One way this is done is through specification of “prescribed”
“proration units” for a field. These units are often confused with drilling units, though
they are very different. A prescribed proration unit does not address the number of acres
necessary to drill a well.25 It simply specifies the maximum amount of acres that an
operator may assign to a well as the proration unit for that well. In turn, the Commission
uses the well proration units designated by operators for the purpose of assigning
22
16 TAC § 3.38. (Ex. A-2 to Ringuet Aff.)
23
16 TAC § 3.38(a)(2), (d)(1). (Ex. A-2 to Ringuet Aff.)
24
2 Smith & Weaver § 10.1(B)(2).
25
See 2 Smith & Weaver § 10.1(B)(2).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 9
production allowables that allocate total field production among individual wells.26
Prescribed proration units are by their nature maximum-sized units, because they
prescribe the maximum acreage that an operator may assign to a well as a proration unit
for production allowable purposes. An operator may always assign fewer acres to its
proration unit than the maximum.
C. The Leases contain a retained acreage clause limiting the amount of acreage
Conoco was allowed to retain for each well.
The properties that are the subject of this lawsuit are a 26,622.79-acre tract27 and a
6,740-acre tract,28 both located in Webb County, Texas. Vaquillas is the successor-in-
interest to the original lessor(s) under both the 26,622.79-acre lease and the 6,740-acre
lease (the “Leases”).29 Defendant Conoco is a successor-in-interest to the original
lessee(s).
The Leases have been amended and supplemented a number of times. On or about
November 1, 1987, the 26,622.79-acre lease was amended to include Paragraph 18.30 On
the same date, the 6,740-acre lease was entered into, containing the same Paragraph 18.
This paragraph provides for the release of acreage at the end of the continuous drilling
26
16 TAC § 3.38(a)(3). (Ex. A-2 to Ringuet Aff.)
27
26,622.79 acres of land, more or less, situated in Webb County, Texas more fully described in the Oil,
Gas and Mineral Lease dated June 15, 1974 (as amended) between Vaquillas Ranch Company, Ltd. et al.,
as Lessor, and Conoco Inc., as Lessee, a copy of which is recorded in Volume 460, Pages 324-330 of the
Webb County Deed Records (hereinafter the “26,622.79-acre lease”). (Ex. B-2 to Smith Aff.).
28
6,740 acres of land, more or less, situated in Webb County, Texas more fully described in the Oil, Gas
and Mineral Lease, dated effective November 1, 1987, and entered into by and between Vaquillas Ranch
Company, Ltd., Vaquillas Unproven Mineral Trust, and Vaquillas Proven Mineral Trust, as Lessor, and
Conoco Inc., as Lessee, a Memorandum of which is recorded in Volume 1303, Pages 886 et seq. of the
Webb County Real Property Records (hereinafter the “6,740-acre lease”). (Ex. B-3 to Smith Aff.).
29
See Ex. B Smith Aff.
30
The retained acreage clause found in Paragraph 18 was also in the original 26,622.79-acre lease. In the
original 1974 lease, the clause was found in section 12(g). (Ex. B-2 to VAQ Aff.).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 10
program. In order to be engaged in a continuous drilling program, after the end of the
primary term, Conoco must commence the drilling of a new well within 90 days after the
completion of each well. At the end of the continuous drilling program (i.e., when
Conoco elects to cease commencement of the drilling of new wells within the 90 day
period(s)), the Leases are maintained only as to an amount of acreage for each producing
or shut-in gas well that is capable of producing in paying quantities. The Leases go on to
require Conoco to execute and deliver to Vaquillas a written release of any acreage not
retained.
Paragraph 18 states in pertinent part:
… Lessee covenants and agrees to execute and deliver to Lessor a written
release of any and all portions of this lease which have not been drilled to a
density of at least 40 acres for each producing oil well and 640 acres for
each producing or shut-in gas well, except that in case any rule adopted by
the Railroad Commission of Texas or other regulating authority for any field
on this lease provides for a spacing or proration establishing different
units of acreage per well, then such established different units shall be
held under this lease by such production, in lieu of the 40 and 640-acre
units above mentioned.
(Emphasis added).31
Conoco and Vaquillas thus agreed to an exception to Conoco’s otherwise-existing
right to retain 640 acres for each gas well. If the Commission adopts a rule for the field
providing for spacing or proration that establishes units of acreage different than 40 acres
[oil wells] or 640 acres [gas wells], Paragraph 18’s “except” provision is triggered and
Conoco therefore retains only the amount of acreage per well established by the spacing
provided in the Railroad Commission’s rules for the field. The expressed intent of the
31
Exs. B-2 & B-3 to Smith Aff. at ¶ 18.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 11
parties’ agreed exception is clear. In lieu of the default 640 acres, the units established by
the Railroad Commission’s rules for the field were to determine the amount of acreage
that would be retained for each well.
D. The Railroad Commission adopted spacing rules for the Vaquillas
Ranch (Lobo Cons.) Field.
The Railroad Commission of Texas adopted spacing rules in its special field rules
for the Vaquillas Ranch (Lobo Cons.) Field.32 Each of the wells drilled under the Leases
is in the Vaquillas Ranch (Lobo Cons.) Field.33
After the November 1, 1987, amendment to the Leases, at Conoco’s request, the
Railroad Commission adopted rules specifically for the Vaquillas Ranch (Lobo Cons.)
Field. These field rules, which were initially adopted on February 24, 1998, contained
spacing rules providing that no well could be drilled nearer than 467 feet to any property
line, lease line, or subdivision line (the “lease-line spacing” requirement), and that no
well could be drilled nearer than 1,200 feet from any other well (the “between-well
spacing” requirement).34 Under such rules, the established spacing unit (i.e., drilling
unit) was a minimum of 40 acres per well.
On or about November 2, 2010, and again at Conoco’s request, the Railroad
Commission held a field rule hearing for the Vaquillas Ranch (Lobo Cons.) Field.
Following the hearing, the Commission amended the rules for the field, leaving the 40-
32
Conoco MSJ at 4.
33
Id.
34
The 467 foot lease-line spacing and 1,200 foot between-well spacing requirements happen to be
identical to the requirements set out in Statewide Rule 37, which would apply in the absence of field
rules. The Commission, through its adoption of special field rules for the field, considered the evidence
presented and in its expertise concluded that this was the appropriate spacing rule for development in this
particular field. (Ex. A-4 to Ringuet Aff.).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 12
acre drilling unit requirement intact.35 The 1998 field rules, as amended, remain in effect
today.
The amended field rules continue to provide for lease-line spacing of 467 feet, and
between-well spacing of 1,200 feet, with one exception. As has become common for
certain types of fields, in the 2010 amendments to the field rules, the Commission
eliminated the minimum between-well spacing requirement for wells located at least 660
feet from the nearest property line, lease line, or subdivision line. This gave the operators
in the field greater flexibility in locating wells.36 The 40-acre established drilling unit
requirement continued to apply for all wells drilled in the field.37
IV. ARGUMENT AND AUTHORITIES
A. Under the plain language of the Leases, Conoco is entitled to retain no more
than the 40-acre units per well established by the Railroad Commission.
Paragraph 18 of the Leases unambiguously provides that when the Railroad
Commission adopts field rules that provide for spacing “establishing different units of
35
Ex. A-5 to Ringuet Aff.
36
Conoco sought to eliminate the between-well spacing requirement for interior wells because the area is
highly faulted. Because of the complexity of the geology, the difficulty of developing the many separate
fault blocks in the field, and the desire to ensure all the “sweet spots” were produced, the between-well
spacing requirement for interior wells was eliminated. See Ex. A-5 to Ringuet Aff.
37
Importantly, while the field rules were amended in 2010 to remove the between-well spacing
requirement for interior wells, the amendments did not affect the density requirement for any wells drilled
on the Subject Property. As discussed above, the purpose of the elimination of the between-well spacing
requirement for interior wells was to promote production in a tight formation and deal with structural
anomalies. The effect was not to amend or remove the density requirement. The Commission did not
amend or eliminate the acreage requirement for drilling wells, including interior wells, in the field.
Where field rules are amended, but the amendments do not expressly amend, eliminate, or address an
already-existing portion of the field rule, that section of the rule is unaffected by the amendments. After
the 2010 amendments, the Commission continued to require standard drilling units of 40 acres per well.
See, e.g., “Field Rules Display” for the field on the Commission’s website. (Ex. A-1 to Ringuet Aff.).
Further, the 40-acre standard drilling unit requirement is consistent with Conoco’s W-1 drilling permits.
E.g., W-1 for API No. 42-479-41635. (Ex. A-6 to Ringuet Aff.).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 13
acreage per well, then such established different units shall be held under this lease by
such production, in lieu of the 40 [for oil wells] and 640-acre [for gas wells] units above
mentioned.”38 The Railroad Commission did adopt field rules providing for spacing that
established 40-acre units for the Vaquillas Ranch (Lobo Cons.) Field. Conoco, therefore,
may retain no more than 40 acres per gas well.
In Paragraph 18, the parties agreed to an exception to Conoco’s otherwise existing
right to retain 640 acres for gas wells. The exception is triggered by the Railroad
Commission’s adoption of spacing or proration establishing “… different units of
acreage per well …” (the “agreed exception”). Thus, the parties clearly contemplated
that spacing rules (as well as proration rules) trigger the agreed exception, if the units of
acreage thereby established are different than 640 acres for gas wells. When triggered,
the agreed exception allowed Conoco to retain only those units of acreage per well
established by the spacing provided in the Railroad Commission rules, thus reducing the
acreage Conoco could retain. This is precisely what occurred here. It is undisputed that
the Railroad Commission, through its special field rules, provided spacing rules for the
Vaquillas Ranch (Lobo Cons.) Field.39 As discussed below, these spacing rules in turn
establish 40-acre units per well.
In situations such as this one, in which the Commission adopts rules for a field
providing for spacing, but where the field rules do not explicitly set out the required
density (minimum acres required to drill a well), Railroad Commission Rule 38 operates
38
Exs. B-2 & B-3 to Smith Aff. at ¶ 18.
39
Conoco MSJ at 4.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 14
to prescribe the units of acreage established by the spacing provided in the rules for the
field. 16 TEX. ADMIN. CODE § 3.38 (“Rule 38”).40 Rule 38 provides in pertinent part:
The standard drilling unit for all oil, gas, and geothermal resource fields
wherein only spacing rules… are applicable is hereby prescribed to be
the following.
Spacing Rule Acreage
Requirement
(1) 150 - 300 2
(2) 200 - 400 4
(3) 330 - 660 10
(4) 330 - 933 20
(5) 467 - 933 20
(6) 467 - 1200 40
(7) 660 - 1320 40
16 TEX. ADMIN. CODE § 3.38(b)(2)(A) (emphasis added).41
The Commission’s special field rules provide a spacing rule – 467 feet lease-line
spacing and 1,200 feet between-well spacing – for the Vaquillas Ranch (Lobo Cons.)
Field. As is contemplated by Rule 38, these special field rules did not contain a density
rule. Nevertheless, as shown on the above table, the special field rules’ designation of
40
Ex. A-2 to Ringuet Aff.
41
Ex. A-2 to Ringuet Aff.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 15
spacing operated to prescribe and establish 40-acre drilling units for each oil or gas well
in the Vaquillas Ranch (Lobo C.) Field.42
The agreed exception was triggered by the adoption of the Vaquillas Ranch (Lobo
Cons.) special field rules, which included spacing that established 40 acre units. Conoco
was therefore entitled to retain no more than 40 acres for each of the gas wells it drilled
on the Subject Property. Consistent with the fundamental purpose of the oil and gas lease
– to develop and produce the minerals – this allows Conoco to continue to produce the
minerals from the wells that it has drilled on the acreage that it has developed. The
remaining undeveloped acreage reverts to Vaquillas, allowing Vaquillas or another party
to develop the undeveloped reverted acreage and produce the minerals underlying that
acreage.
B. Conoco’s contention that the field rules for the Vaquillas Ranch (Lobo Cons.)
field do not establish 40-acre units requires the Court to disregard or to add
words to the Leases.
Conoco argues that the established 40 acre spacing/drilling units are not
“established” because they constitute a minimum (with no maximum) acreage
requirement for drilling each well. In advancing this argument, Conoco would have the
Court ignore well-settled rules of contract construction in order to fulfill Conoco’s quest
42
Prior to 1955, the Commission relied upon spacing rules alone to govern the density of drilling.
Observing that on tracts of irregular size and shape, wells could be drilled with less acreage per well (i.e.,
to a greater density), as compared to regularly-shaped tracts, i.e., square tracts, in 1955, the Commission
first adopted the chart found in Rule 38. The chart was adopted to prescribe the required minimum
number of acres per well based on the applicable spacing to remedy this “disadvantage” for regularly-
shaped tracts. The chart remains the same to this date. (Exs. A-2, A-7 of Ringuet Aff.). The chart in Rule
38 effectively serves as a backstop or gap-filler when only spacing is provided for in the special field
rules.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 16
to retain 640 acres for each well drilled under the Leases.43 Conoco’s reading is at odds
with the plain language of the Leases.
Paragraph 18’s agreed exception to Conoco’s otherwise existing right to retain 640
acres for gas wells is triggered by the Railroad Commission’s field rules providing for
spacing or proration establishing “…different units of acreage per well….” It does not
use the words establishing “…maximum units of acreage per well….” The units are no
less “established” or “prescribed” because they operate as minimums. Acceptance of
Conoco’s argument that because the 40 acre units are only minimums, Paragraph 18’s
agreed exception is not triggered, would require that the court add words to the language
chosen by the parties, contrary to accepted rules of contract interpretation.44
To the extent that Conoco means to imply that because the 40-acre units
established by the spacing provided in the field rules for the Vaquillas Ranch (Lobo
Cons.) Field are the same as the statewide rules (which apply if field rules have not been
established), the exception provision of Paragraph 18 is not triggered, Conoco is
incorrect.45
Where the language of Paragraph 18 refers to the Railroad Commission’s adoption
of “spacing … establishing … different units of acreage per well …,” the word
“different” refers back to the 40 acres for each oil well and 640 acres for each producing
43
See Am. Mfrs. Mut. Ins. Co. v. Schaefer, 124 S.W.3d 154, 162 (Tex. 2003) (courts “may neither rewrite
the parties' contract nor add to its language,” but rather, must interpret unambiguous contract language as
written).
44
Id.
45
Conoco MSJ at 8.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 17
or shut-in gas well earlier in the sentence.46 The word “different” here does not, as
Conoco suggests, mean different from the “statewide rules” for well density; had it meant
that, the parties would have referenced the statewide rules.47 Conoco’s effort to add
words to the contract must again be rejected.
Conoco also appears to take the position that the reference to “units of acreage per
well” refers only to “proration units” and does not include “drilling units.”48 The parties
chose the broader term “units of acreage,” and specified that spacing rules or proration
rules could trigger the exception. Thus the provision cannot be limited to proration
units, but must include both drilling units and proration units. This is consistent with the
language of Paragraph 18’s agreed exception referring to “…spacing or proration
establishing different units of acreage per well.”
In addition, Conoco references the pooling clause in the Leases.49 Under the
Leases, however, the pooling clause has nothing to do with or effect on the acreage
limitation in the retained acreage clause. Conoco’s statement that the pooling clause
somehow establishes the “normal and completely authorized block of acreage” under the
Leases would render meaningless the agreed exception.50
46
Indeed, Conoco acknowledges this on page 11 of its Motion for Summary Judgment, when it states that
before Paragraph 18’s exception is triggered, “the Railroad Commission must ‘establish’ units for gas
wells of a different size than 640 acres.”
47
Notably, there is no reference to statewide rules in Paragraph 18.
48
Id. at 4.
49
Conoco MSJ at 6.
50
Conoco MSJ at 7.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 18
The Commission has, through the spacing rules adopted for the field, established a
40-acre spacing/drilling unit requirement. Paragraph 18’s condition was thus triggered.
Conoco is entitled to retain no more than 40 acres per well.
C. Jones v. Killingsworth, cited by Conoco, supports Vaquillas’s position that the
field rules “establish” or “prescribe” 40-acre units, and operators are only
“permitted” to form larger units.
Jones v. Killingsworth, 403 S.W.2d 325 (Tex. 1965), dealt with a pooling clause
and proration units prescribed by the Railroad Commission, not a retained acreage clause.
Nonetheless, the case is instructive and supports Vaquillas’s position that the
Commission’s field rules for the Vaquillas Ranch (Lobo Cons.) Field “establish” 40-acre
units.
Jones involved a lessee’s attempt to create a pooled unit for oil of 160 acres rather
than an 80-acre unit, which the lessor believed to be the maximum size allowed under the
pooling clause of the parties’ oil and gas lease. Similar to the retained acreage clause in
this case, the pooling provision in Jones also created an exception to the default
maximum pooled unit size when a different one was prescribed by a governmental
authority.
Units pooled for oil hereunder shall not substantially exceed 40 acres each
plus a tolerance of 10% thereof, provided that should governmental
authority having jurisdiction prescribe or permit the creation of units larger
than those specified, units thereafter created may conform substantially in
size with those prescribed by governmental regulations.
Id. at 327 (emphasis added).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 19
The lessee in Jones argued that because rules adopted by the Railroad Commission
prescribed oil proration units of not less than 80 acres but merely permitted up to 160
acres for each oil unit, that by reading these rules into the lease’s pooling provision the
lease would read: “the size of the units thereafter created may not be substantially less
than 80 acres nor substantially more than 160 acres. Id. at 327. The Supreme Court
disagreed with this construction, writing:
The lessors did not consent to enlarge an oil proration unit to any size
permitted by governmental regulations. They gave their consent to enlarge
a unit of substantially 40 acres, but only to the extent of the size of units
prescribed by the regulatory authority. The fact that the Railroad
Commission may permit a much larger unit cannot be read into the lease
contract when, as here, the authority to create larger units is expressly
limited to units the size prescribed by the Railroad Commission. The
Commission prescribed a unit of 80 acres. The field rules clearly say that
there must be a proration unit of at least 80 acres, and there may be larger
units of not more than [160] acres. The parties obviously knew when the
lease contract was executed that a permitted oil proration unit could
conceivably be much larger in area than one prescribed by
governmental authority. To say that a lessee can pool lessor’s land
with units of any size permitted by the Railroad Commission would
defeat the intention of the parties to restrict the size of the units to a
size prescribed by governmental authority.
Id. at 327-28 (boldface added; italics in original).
Jones stands for the proposition that when an oil and gas lease provision references
acreage prescribed by a Railroad Commission rule as a marker that will restrict or limit
the size of the units that the lessee is otherwise allowed to retain, the unit size prescribed
by the Commission rule controls over a larger-sized unit that is merely permitted or
allowed by such Commission rule.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 20
Like Jones, here the Vaquillas retained acreage clause clearly contemplated a
restriction in the size of the otherwise allowed 40- or 640-acre units to the size prescribed
by Railroad Commission field rules. The parties knew when the Leases were executed
that field rules could be adopted for a field on the Vaquillas Ranch providing for spacing
that established units different than 640 acres per gas well. That is what happened. The
467-1200 spacing in the field rules established the 40-acre drilling unit requirement.
The standard drilling unit for all oil, gas, and geothermal resource
fields wherein only spacing rules… are applicable is hereby prescribed
to be the following.
Spacing Rule Acreage Requirement
... ...
(6) 467 – 1200 40
... ...
51
16 TEX. ADMIN. CODE § 3.38(b)(2)(A) (emphasis supplied). The field rules provide for
spacing establishing 40 acre units. In the Jones pooling provision, the limiting word was
“prescribed.” In the Vaquillas Leases, the word of limitation is “established.” As
Conoco’s motion correctly states, Black’s Law Dictionary defines “Establish” as “To
settle, make or fix firmly; place on a permanent footing; found; create; put beyond doubt
or dispute; prove; convince.”52 Black’s also defines “Prescribe” with an equivalent
meaning: “Prescribe”- “To dictate, ordain, or direct; to establish authoritatively (as a
rule or guideline).”53 (emphasis added). The applicable rules for the field include
51
Ex. A-2 to Ringuet Aff.
52
Conoco MSJ at 11.
53
Black’s Legal Directory at 1373 (10th ed. 2014). Likewise, Webster’s Dictionary defines “prescribe” to
include “to establish rules, laws, or directions.” Webster’s II New College Dictionary at 874 (Houghton
Mifflin Company 1999).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 21
spacing rules that clearly “establish” or “prescribe” 40-acre units for the Vaquillas Ranch
(Lobo Cons.) Field.
Conoco argues that because the prescribed density rule sets out only a minimum
amount of acreage required for a drilling unit (i.e., to drill a well) rather than a fixed
acreage or the maximum acreage, that this somehow means the spacing rules provided in
the special field rules do not establish units of acreage different than 640 acres. 54 This is
incorrect. The units are no less “prescribed” and “established” because they are
minimums. And, the prescribed and established 40-acre units are unarguably different
than 640-acre units. Conoco’s argument tracks the argument made (and lost) by the lessee
in Jones. That argument was rejected by the Texas Supreme Court, and it should be
rejected by this Court.
D. Conoco’s interpretation ignores the inherent role of drilling units as
specifying the minimum acreage required to drill wells, and thereby renders
the word “spacing” in Paragraph 18’s agreed exception meaningless.
Conoco’s erroneous interpretation of Paragraph 18 also fails because it would
render Paragraph 18’s “except” clause meaningless as it relates to spacing.
The Texas Supreme Court has held that in construing an oil and gas lease, one
must “examine the entire document and consider each part with every other part so that
the effect and meaning of one part on any other part may be determined.”55 This is
because the court presumes “that the parties to a contract intend every clause to have
54
Conoco MSJ at 4, 8, 11-12.
55
Heritage Res., Inc. v. NationsBank, 939 S.W.2d 118, 121 (Tex. 1996) (emphasis added).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 22
some effect.”56 And in construing the language of a contract, the court should consider
the surrounding circumstances as part of determining whether the language can be given
a definite meaning. E.g., Sun Oil Co. (Delaware) v. Madeley, 626 S.W.2d 726, 731 (Tex.
1981).
Conoco argues that spacing provided in the Railroad Commission’s field rules do
not “establish” 40-acre units, because they “permit operators to drill wells on a minimum
of 40 acres.”57 By their very nature, because of their purpose, the Railroad Commission’s
density requirements establish only a minimum acreage requirement – they establish the
minimum amount of acreage required for drilling a well.58 Conoco’s construction,
whereby the exception applies only when the Commission establishes a precise and fixed
drilling unit size or proration unit size, ignores the fact that by their nature, prescribed
drilling units are minimum requirements.59 The agreed exception of Paragraph 18,
however, unquestionably indicates that the parties contemplated that special field rules
that provide for spacing could trigger the retained acreage clause’s exception, and thereby
reduce the number of acres that Conoco could otherwise retain.60
56
Id. (emphasis added).
57
Conoco MSJ at 11.
58
This, of course, is because any other requirement would lead to absurd results (e.g., an operator with a
45 acre tract being denied a drilling permit, where the established density is 40 acres) and because the
Commission’s concern in establishing drilling units is to prevent waste caused by excessively dense
drilling.
59
This motion concerns drilling/spacing units, and not proration units. Conoco’s reference to proration
units in footnote 4, page 5 of its Motion for Summary Judgment ignores this distinction and the lease
language that speaks to “spacing or proration establishing … units.” As noted above, proration units serve
an entirely different purpose than drilling units, and establish the maximum amount of acreage that an
operator may assign to a well for proration purposes.
60
It is settled law that contracts are presumed to incorporate regulations and laws existing at the time of
execution. Amarillo Oil Co. v. Energy-Agri Products, Inc., 794 S.W.2d 20, 22-25 (Tex. 1990); Houston
Lighting & Power Co. v. R.R. Comm'n, 529 S.W.2d 763, 766 (Tex.1975).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 23
If Conoco were correct that the Commission-established 40-acre units do not
apply because the required drilling units are always only the minimum acreage required
to drill a well, then there would be no circumstances under which the agreed “except”
provision of Paragraph 18 could apply where field rules provide for spacing alone. Thus,
Conoco’s reading would render the reference to “spacing” in the parties’ agreed
exception meaningless and violate the rules of construction that every provision in a
contract be given effect and that it be construed in light of the surrounding circumstances.
For this reason also, Conoco’s argument fails.
E. Conoco’s argument regarding a presumption against a “limitation on the
grant” is not relevant to the question of whether Conoco is obligated to
execute a formal release of the Reverted Minerals. Further, the presumption
does not apply in the context of Paragraph 18’s clear condition.
Whether the agreed exception constitutes a covenant or a condition is not relevant
to the issue of whether Conoco is required to execute a formal release for all acreage in
excess of 40 acres for each producing and shut-in natural gas well capable of producing
in paying quantities.
Nonetheless, the cases cited by Conoco in support of its argument regarding a
presumption against a limitation do not apply in this case because Paragraph 18 contains
a clear limitation or condition. A distinction is generally drawn between covenants and
conditions in oil and gas leases. See, e.g., Rogers v. Ricane Enterprises, Inc., 772 S.W.2d
76, 79 (Tex. 1989). Breach of a condition results in automatic termination of the
leasehold estate upon the happening of stipulated events. Id. Breach of a covenant does
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 24
not automatically terminate the estate, but instead subjects the breaching party to liability
for damages, or the remedy of a decree of cancellation. Id.
Paragraph 18 specifies the acreage that “shall be held” by Conoco, thus
necessarily also providing for the acreage that shall not be held (i.e., shall revert to
Vaquillas). The agreed exception and the phrase “shall be held” cannot be construed to
be anything other than a condition, breach of which results in termination of the leasehold
estate as to the Reverted Minerals.61
V. CONCLUSION
Conoco has drilled some 208 wells on the leases and retains up to 40 acres for
each well capable of producing in paying quantities. This acreage allows Conoco to
operate these wells and produce them at maximum potential. This case concerns the
remaining 25,000+ acres that Conoco has not developed to the density provided by
Railroad Commission rules for the field. Yet, Conoco wants to hold that acreage and
thereby prevent Vaquillas from having it developed by another operator.
The Leases unequivocally provide in Paragraph 18 that Conoco retains only that
acreage for each well equal to the acreage per unit established by the Railroad
Commission’s spacing rules for the field if those units are different than 640 acres for gas
wells. Conoco does not dispute that the applicable drilling/spacing units – the minimum
amount of acres required to drill a well – established by the Commission field rules are
40 acres per well. Instead, Conoco makes a number of arguments that simply do not fit
with the language of the Leases and would have this Court rewrite that language.
61
See, e.g., Freeman v. Magnolia Petroleum Co., 171 S.W.2d 339, 340 (Tex. 1943).
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 25
Conoco has refused to acknowledge that the undeveloped acres that it elected not
to earn by drilling additional wells has reverted to Vaquillas. And, consistent with this
refusal, Conoco has not provided the formal releases required by the Leases. Vaquillas
simply asks this Court to rectify this situation.
VI. SUMMARY JUDGMENT EVIDENCE
In support of this Motion, Vaquillas relies on the following summary
judgment evidence, which is filed with the Motion and is hereby incorporated as part of
this Motion:
Exhibit A: Affidavit of Alicia R. Ringuet.
Exhibit A-1: Field Rules Display for the Vaquillas Ranch (Lobo Cons.)
Field.
Exhibit A-2: Railroad Commission Rule 38 (16 TAC §3.38).
Exhibit A-3: Defendant ConocoPhillips Company’s Response to Numbers
16 and 17 of Plaintiff Vaquillas Unproven Minerals, Ltd.’s
First Set of Interrogatories in the above-captioned case.
Exhibit A-4: Proposal For Decision and Final Order in the Texas Railroad
Commission, Oil and Gas Docket No. XX-XXXXXXX.
Exhibit A-5: Proposal For Decision and Final Order in the Texas Railroad
Commission, Oil and Gas Docket No. XX-XXXXXXX.
Exhibit A-6: Form W-1 filed with Texas Railroad Commission for API
No. 42-479-41635.
Exhibit A-7: Special Order Pertaining to Density Development in All
Fields Where Standard Proration Units Have Not Been
Adopted, Oil and Gas Docket Nos. 108, 124, 125, 126, 128,
129 and 146, August 15, 1955.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 26
Exhibit B: Affidavit of Dino O. Smith.
Exhibit B-1: June 15, 1974 Oil, Gas and Mineral Lease between Vaquillas
Ranch Company, Ltd., a limited partnership acting herein
through its general partners, J.O. Walker, Jr., Gene S. Walker,
Evan B. Quiros and E. Walker Quiros (a/k/a Mary Elizabeth
Quiros) and Continental Oil Company for 26,622.79 acres of
land, more or less, situated in Webb County, Texas.
Exhibit B-2: November 1, 1987 Oil, Gas and Mineral Lease Amending
Oil, Gas and Mineral Lease dated June 15, 1974 (As
Amended) between Vaquillas Ranch Company, Ltd.;
Vaquillas Unproven Mineral Trust; Vaquillas Proven Mineral
Trust; acting by and through its general partners, J. O.
Walker, Jr., E. Walker Quiros, Gene S. Walker and Evan B.
Quiros, and Conoco, Inc., Lessee for 26,622.79 acres, more or
less, situated in Webb County, Texas.
Exhibit B-3: November 1, 1987 Oil, Gas and Mineral Lease between
Vaquillas Ranch Company, Ltd.; Vaquillas Unproven Mineral
Trust; Vaquillas Proven Mineral Trust; acting by and through
its general partners, J.O. Walker, Jr., E. Walker Quiros, Gene
S. walker and Evan B. Quiros and Conoco Inc. for 6,740 acres,
more or less, situated in Webb County, Texas.
Exhibit B-4: December 19, 1984 Mineral Deed from Vaquillas Ranch Co.,
Ltd. to J. O. Walker, Jr., et al. a copy of which is recorded in
Volume 1097, Pages 66 et seq. of the Deed Records of Webb
County, Texas.
Exhibit B-5: December 19, 1984, Mineral Deed from J.O. Walker, Jr., et
al. to J.O. Walker et al., as Trustees of the Vaquillas
Unproven Minerals Trust, a copy of which is recorded in
Volume 1097, Pages 101 et seq. of the Deed Records of
Webb County, Texas.
Exhibit B-6: Effective December 31, 1996, Mineral Deed from the
Trustees of the Vaquillas Unproven Minerals Trust to
Vaquillas Unproven Minerals, Ltd. a copy of which is
recorded in Volume 471, Pages 711 et seq. of the Official
Public Records of Webb County, Texas.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 27
Pursuant to Rules 201 and 204 of the Texas Rules of Evidence, Vaquillas requests
that the Court take judicial notice of the following:
Exhibit A-2: Railroad Commission Rule 38 (16 TAC §3.38).
Exhibit A-4: Proposal For Decision and Final Order in the Texas Railroad
Commission, Oil and Gas Docket No. XX-XXXXXXX.
Exhibit A-5: Proposal For Decision and Final Order in the Texas Railroad
Commission, Oil and Gas Docket No. XX-XXXXXXX.
Exhibit A-7: Special Order Pertaining to Density Development in All
Fields Where Standard Proration Units Have Not Been
Adopted, Oil and Gas Docket Nos. 108, 124, 125, 126, 128,
129 and 146, August 15, 1955.
VI. PRAYER
For these reasons, Plaintiff Vaquillas Unproven Minerals, Ltd. asks for judgment
against Defendant ConocoPhillips Company for the following:
A. Judgment granting Vaquillas’s cross-motion for partial summary judgment;
B. Judgment that Conoco has breached the Leases by failing to release all
acreage in excess of 40 acres for each producing and shut-in natural gas
well capable of producing in paying quantities;
C. Judgment denying Conoco’s motion for summary judgment;
D. All other and further relief to which Plaintiff may be justly entitled.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 28
Respectfully submitted,
By: /s/Gregg Owens
Gregg Owens
Gregg Owens, SBN 15383500
gregg.owens@haysowens.com
John R. Hays, Jr., SBN 09303300
john.hays@haysowens.com
Alicia R. Ringuet, SBN 24074958
alicia.ringuet@haysowens.com
HAYS & OWENS L.L.P.
807 Brazos Street, Suite 500
Austin, Texas 78701
(512) 472-3993
(512) 472-3883 Facsimile
Michael Jung, SBN 11054600
michael.jung@strasburger.com
STRASBURGER & PRICE, LLP
901 Main Street, Suite 4400
Dallas, Texas 75202-3794
(214) 651-4724
(214) 651-4330 Facsimile
Armando X. Lopez, SBN 12562400
mandox@rio.bravo.net
LAW OFFICES OF ARMANDO X. LOPEZ
1510 Calle Del Norte, Suite 16
Laredo, Texas 78041
(956) 726-0722
(956) 726-6049 Facsimile
Raul Leal, SBN 24032657
rleal@rl-lawfirm.com
RAUL LEAL INCORPORATED
5810 San Bernardo, Suite 390
Laredo, Texas 78041
(956) 727-0039
(956) 727-0369 Facsimile
ATTORNEYS FOR VAQUILLAS
UNPROVEN MINERALS, LTD.
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 29
CERTIFICATE OF SERVICE
I hereby certify that a true copy of this document is being served on the following
persons by the means shown on this the 8th day of September, 2014.
By: /s/Gregg Owens
Gregg Owens
Mr. Michael V. Powell via Electronic Mail
mpowell@lockelord.com
Ms. Elizabeth L. Tiblets
etiblets@lockelord.com
LOCKE LORD LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Mr. Adolfo Campero via Electronic Mail
acampero@camperolaw.com
CAMPERO & ASSOCIATES, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
ATTORNEYS FOR DEFENDANT
CONOCOPHILLIPS COMPANY
PLAINTIFF’S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT AND
RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT PAGE 30
Filed
9/8/2014 4:12:20 PM
Esther Degollado
District Clerk
Webb District
2014 CVQ000 438 D4
EXHIBIT
A
_________
Exhibit A-5: a true and correct certified copy of the Proposal For Decision and
Final Order in the Texas Railroad Commission, Oil and Gas Docket
No. XX-XXXXXXX.
Exhibit A-6: a true and correct certified copy of the Form W-1 filed with the
Texas Railroad Commission for API No. 42-479-41635.
Exhibit A-7: a true and correct copy of the Special Order Pertaining to Density
Development in All Fields Where Standard Proration Units Have
Not Been Adopted, Oil and Gas Docket Nos. 108, 124, 125, 126,
128, 129 and 146, August 15, 1955.
Exhibit A-8: Resume of Alicia R. Ringuet."
Further affiant sayeth not.
Subscribed and sworn to before me on this 6 !!::aay of September, 2014.
I ,,,,..,,,,,,, JENN lfER ROGERS
f Texas
~~..~~.Y~r~,.;;-,, Notary Public. State o . s
f":' ': ~ My commission Expire Not ry lie in and for
\...j ......:..~~ March 28, 20 15 - •
'~/1'£ Of'\''
''''111"'' the State of Texas
My commission expires:
AFFIDAVIT OF ALICIA R. RINGUET PAGE2
8/25/2014 Field Rules Display
Log In I
Field Rules Display
Field Query Previous Query
Field Rules for Field: VAQUILLAS RANCH (LOBO CONS.)
Field Number: 93215400 District Name: 04
Oil field Rules:
County Regular: N Salt Dome: N field Location: LAND Don't Permit: N
Schedule Remarks: UNITIZED TRACT.
Comments: SEE REMARKS FOR OPTIONAL RULES
Rule Lease Well Acres per Tolerance Diagonal Diagonal Max
Depth
Type Spacing Spacing Unit Acres Code Length
Special All Corner to
467 1200 40.0 0.0 1200
Rules Depths Corner
Gas field Rules:
County Regular: N Salt Dome: N field Location: LAND Don't Permii: N
Schedule Remarks: NO P-15 OR PLAT REQUIRED.
Comments: SEE REMARKS
Rule Lease Well Acres per Tolerance Diagonal Diagonal Max
Depth
Type Spacing Spacing Unit Acres Code Length
Special All
Rules Depths
467 1200 40.0 0.0 0
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EXHIBIT
A-1
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RAILROAD COMMISSION OF TEXAS
STATE OF TEXAS ·. · · ··· :.
COUNTYOFTRAVIS '. ·•·
I hereby certify that the information on the
reverse side hereof is a true and correct copy of a document on
D513 7 i; nuG 25 1t~ file with the Railroad Commission of Texas, and I further certify that
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I am the legal Custodian of the records, files and seal of the Rail-
''.f (~· road Commission of Texas.
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: Texas Administrative Code http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_d...
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TITLE 16 ECONOMIC REGULATION
PART 1 RAILROAD COMMISSION OF TEXAS
CHAPTER 3 OIL AND GAS DIVISION
RULE §3.38 Well Densities
(a) Definitions. The following words and terms, when used in this section, shall have the following
meanings, unless the context clearly indicates otherwise.
(1) Commission designee--Director of the Oil and Gas Division or any Commission employee designated in
writing by the director or the Commission.
(2) Drilling unit--The acreage assigned to a well for drilling purposes.
(3) Proration unit--The acreage assigned to a well for the purpose of assigning allowables and allocating
allowable production to the well.
(4) Substandard acreage--Less acreage than the smallest amount established for standard or optional drilling
units.
(5) Surplus acreage--Substandard acreage within a lease, pooled unit, or unitized tract that remains
unassigned after the assignment of acreage to each applied for, permitted, or completed well in a field, in an
amount equaling or exceeding the amount established for standard or optional drilling units. Surplus acreage
is distinguished from the term "tolerance acreage,"in that tolerance acreage is defined in context with
proration regulation, while surplus acreage is defined by this rule only in context with well density
regulation.
(6) Tolerance acreage--Acreage within a lease, pooled unit, or unitized tract that may be assigned to a well
for proration purposes pursuant to special field rules in addition to the amount established for a prescribed or
optional proration unit.
(b) Density requirements.
(1) General prohibition. No well shall be drilled on substandard acreage except as hereinafter provided.
(2) Standard units.
(A) The standard drilling unit for all oil, gas, and geothermal resource fields wherein only spacing rules,
either special, country regular, or statewide, are applicable is hereby prescribed to be the following.
Attached Graphic
(B) The spacing rules listed in subparagraph (A) of this paragraph are not exclusive. If any spacing rule
not listed in subparagraph (A) of this subsection is brought to the attention of the commission, it will be
given an appropriate acreage assignment. EXHIBIT
A-2
_________
(c) Development to final density. An application to drill a well for oil, gas, or geothermal resource on a
drilling unit composed of surplus acreage, commonly referred to as the "tolerance well," may be granted as
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regular when the operator seeking such permit certifies to the commission in a prescribed form the necessary
data to show that such permit is needed to develop a lease, pooled unit, or unitized tract to final density, and
only in the following circumstances:
(1) when the amount of surplus acreage equals or exceeds the maximum amount provided for tolerance
acreage by special or county regular rules for the field, provided that this paragraph does not apply for a
lease, pooled unit, or unitized tract that is completely developed with optional units and the special or county
regular rules for the field do not have a tolerance provisions expressly made applicable to optional proration
units;
(2) if the special or county regular rules for the field do not have a tolerance provision expressly made
applicable to optional proration units, when the amount of surplus acreage equals or exceeds one-half of the
smallest amount established for an optional drilling unit; or
(3) if the applicable rules for the field do not have a tolerance provision for the standard drilling or proration
unit, when the amount of surplus acreage equals or exceeds one-half the amount prescribed for the standard
unit.
(d) Applications involving the voluntary subdivision rule.
(1) Density exception not required. An exception to the minimum density provision is not required for the
first well in a field on a lease, pooled unit, or unitized tract composed of substandard acreage, when the
leases, or the drillsite tract of a pooled unit or unitized tract:
(A) took its present size and shape prior to the date of attachment of the voluntary subdivision rule
(§3.37(g) of this title (relating to Statewide Spacing Rule)); or
(B) took its present size and shape after the date of attachment of the voluntary subdivision rule (§3.37(g)
of this title (relating to Statewide Spacing Rule)) and was not composed of substandard acreage in the field
according to the density rules in effect at the time it took its present size and shape.
(2) Density exception required. An exception to the density provision is required, and may be granted only
to prevent waste, for a well on a lease, pooled unit, or unitized tract that is composed of substandard acreage
and that:
(A) took its present size and shape after the date of attachment of the voluntary subdivision rule (§3.37(g)
of this title (relating to the Statewide Spacing Rule)); and
(B) was composed of substandard acreage in the field according to the density rules in effect at the time it
took its present size and shape.
(3) Unit dissolution.
(A) If two or more separate tracts are joined to form a unit for oil or gas development, the unit is accepted
by the Commission, and the unit has produced hydrocarbons in the preceding twenty (20) years, the unit may
not thereafter be dissolved into the separate tracts with the rules of the commission applicable to each
separate tract if the dissolution results in any tract composed of substandard acreage for the field from which
the unit produced, unless the Commission approves such dissolution.
(B) The Commission shall grant approval only after application, notice, and an opportunity for hearing.
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The applicant seeking the unit dissolution shall provide a list of the names and addresses of all current
lessees and unleased mineral interest owners of each tract within the joined or unitized tract at the time the
application is filed. The Commission shall give notice of the application to all current lessees and unleased
mineral interest owners of each tract within the joined or unitized tract. Additionally, if one or more wells on
the unitized tract has produced from the field within the 12-month period prior to the application, the
applicant shall include on the list all affected persons described in subsection (h)(1)(A) of this section, and
the Commission shall give notice of the application to these affected persons.
(C) A Commission designee may grant administrative approval if the Commission designee determines
that granting the application will not result in the circumvention of the density restrictions of this section or
other Commission rules, and if either:
(i) written waivers are filed by all affected persons; or
(ii) no protest is filed within the time set forth in the notice of application.
(e) Application involving unitized areas with entity for density orders. An exception to the minimum density
provision is not required for a well in a unitized area for which the commission has granted an entity for
density order, if the sum of all applied for, permitted, or completed producing wells in the field within the
unitized area, multiplied by the applicable density provision, does not exceed the total number of acres in the
unitized area. The operator must indicate the docket number of the entity for density order on the application
form.
(f) Exceptions to density provisions authorized. The Commission, or Commission designee, in order to
prevent waste or, except as provided in subsection (d)(2) of this section, to prevent the confiscation of
property, may grant exceptions to the density provisions set forth in this section. Such an exception may be
granted only after notice and an opportunity for hearing.
(g) Filing requirements.
(1) Application. An application for permit to drill shall include the fees required in §3.78 of this title
(relating to Fees and Financial Security Requirements) and shall be certified by a person acquainted with the
facts, stating that all information in the application is true and complete to the best of that person's
knowledge.
(2) Plat. When filing an application for an exception to the density requirements of this section, in addition
to the plat requirements in §3.5 of this title (relating to Application to Drill, Deepen, Reenter, or Plug Back)
(Statewide Rule 5), the applicant shall attach to each copy of the application a plat that:
(A) depicts the lease, pooled unit, or unitized tract, showing thereon the acreage assigned to the drilling
unit for the proposed well and the acreage assigned to all current applied for, permitted, or completed oil,
gas, or oil and gas wells in the same field or reservoir which are located within the lease, pooled unit, or
unitized tract;
(B) on large leases, pooled units, or unitized tracts, if the established density is not exceeded as shown on
the face of the application, outlines the acreage assigned to the well for which the permit is sought and the
immediately adjacent wells on the lease, pooled unit, or unitized tract;
(C) on leases, pooled units, or unitized tracts from which production is secured from more than one field,
outlines the acreage assigned to the wells in each field that is the subject of the current application;
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(D) corresponds to the listing required under subsection (g)(1)(A) of this section.
(E) is certified by a person acquainted with the facts pertinent to the application that the plat is accurately
drawn to scale and correctly reflects all pertinent and required data.
(3) Substandard acreage. An application for a permit to drill on a lease, pooled unit, or unitized tract
composed of substandard acreage must include a certification in a prescribed form indicating the date the
lease, or the drillsite tract of a pooled unit or unitized tract, took its present size and shape.
(4) Surplus acreage. An application for permit to drill on surplus acreage pursuant to subsection (c) of this
section must include a certification in a prescribed form indicating the date the lease, pooled unit, or unitized
tract took its present size and shape.
(5) Certifications. Certifications required under paragraphs (3) and (4) of this subsection shall be filed on
Form W-1A, Substandard Acreage Certification.
(A) The operator shall file the Form W-1A with the drilling permit application and shall indicate the
purpose of filing. The operator shall accurately complete all information required on the form in accordance
with instructions on the form.
(B) The operator shall list the field or fields for which the substandard acreage certification applies in the
designated area on the form. If there are more than three fields for which the certification applies, the
operator shall attach additional Forms W-1A and shall number the additional pages in sequence.
(C) The operator shall file the original Form W-1A with the Commission's Austin office and a copy with
the appropriate district office, unless the operator files electronically through the Commission's Electronic
Compliance and Approval Process (ECAP) system.
(D) The operator or the operator's agent shall certify the information provided on the Form W-1A is true,
complete, and correct by signing and dating the form, and listing the requested identification and contact
information.
(E) Failure to timely file the required information on the appropriate form may result in the dismissal of
the application.
(h) Procedure for obtaining exceptions to the density provisions.
(1) Filing requirements. If a permit to drill requires an exception to the applicable density provision, the
operator must file, in addition to the items required by subsection (g) of this section:
(A) a list of the names and addresses of all affected persons. For the purpose of giving notice of
application, the Commission presumes that affected persons include the operators and unleased mineral
interest owners of all adjacent offset tracts, and the operators and unleased mineral interest owners of all
tracts nearer to the proposed well than the prescribed minimum lease-line spacing distance. The Commission
designee may determine that such a person is not affected only upon written request and a showing by the
applicant that:
(i) competent, convincing geological or engineering data indicate that drainage of hydrocarbons from the
particular tracts subject to the request will not occur due to production from the proposed well; and
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(ii) notice to the particular operators and unleased mineral interest owners would be unduly burdensome
or expensive;
(B) engineering and/or geological data, including a written explanation of each exhibit, showing that the
drilling of a well on substandard acreage is necessary to prevent waste or to prevent the confiscation of
property;
(C) additional data requested by the Commission designee.
(2) Notice of application. Upon receipt of a complete application, the Commission will give notice of the
application by mail to all affected persons for whom signed waivers have not been submitted.
(3) Approval without hearing. If the Commission designee determines, based on the data submitted, that a
permit requiring an exception to the applicable density provision is justified according to subsection (f) of
this section, then the Commission designee may issue the exception permit administratively if:
(A) signed waivers from all affected persons were submitted with the application; or
(B) notice of application was given in accordance with paragraph (2) of this subsection and no protest was
filed within 21 days of the notice; or
(C) no person appeared to protest the application at a hearing scheduled pursuant to paragraph (4)(A) of
this subsection.
(4) Hearing on the application.
(A) If a written protest is filed within 21 days after the notice of application is given in accordance with
paragraph (2) of this subsection, the application will be set for hearing.
(B) If the application is not protested and the Commission designee determines that a permit requiring an
exception to the applicable density provision is not justified according to subsection (f) of this section, the
operator may request a hearing to consider the application.
(i) Duration. A permit is issued as an exception to the applicable density provision shall expire two years
from the effective date of the permit; unless drilling operations are commenced in good faith within the two
year period.
Source Note: The provisions of this §3.38 adopted to be effective November 1, 1989, 14 TexReg 5255;
amended to be effective April 21, 1997, 22 TexReg 3404; amended to be effective July 10, 2000, 25 TexReg
6487; amended to be effective June 11, 2001, 26 TexReg 4088; amended to be effective February 13, 2002,
27 TexReg 906; amended to be effective September 1, 2004, 29 TexReg 8271
Next Page Previous Page
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Figure: 16 TAC §3.38(b)(2)(A) http://info.sos.state.tx.us/fids/16_0003_0038-1.html
Figure: 16 TAC §3.38(b)(2)(A)
Acreage Requirement
Spacing Rule
(1) 150 - 300 2
(2) 200 - 400 4
(3) 330 - 660 10
(4) 330 - 933 20
(5) 467 - 933 20
(6) 467 - 1200 40
(7) 660 - 1320 40
1 of 1 9/8/2014 3:18 PM
CAUSE NO. 2014CVQ000438 D4
VAQUILLAS UNPROVEN MINERALS, § IN THE DISTRICT COURT OF
LTD, §
§
Plaintiff, §
§
v. § WEBB COUNTY, TEXAS
§
CONOCOPHILLIPS COMPANY, §
§
Defendant. § 406™ JUDICIAL DISTRICT
DEFENDANT CONOCOPHILLIPS COMPANY'S RESPONSE TO PLAINTIFF
VAQUILLAS UNPROVEN MINERALS, LTD. 'S FIRST SET OF INTERROGATORIES
Defendant ConocoPhillips Company, acting pursuant to Tex. R. Civ. P. 197, responds to
Plaintiffs First Set of Interrogatories as shown on the attached pages.
By Rule 11 agreement between counsel for Plaintiff and Defendant, ConocoPhillips' time
for responding to these interrogatories was extended to and including July 7, 2014.
ConocoPhillips objects to the "Definitions" set forth on pages 4-5 of Plaintiffs First Set
of Interrogatories as follows:
1. ConocoPhillips objects to the twenty-one "Definitions" in their entirety for the
reason that they consist mainly of boilerplate "definitions," not tailored to Plaintiffs First Set of
Interrogatories. For example, they include instructions "to produce" documents, which is not the
proper function of interrogatories. As another example, the definitions include many words
never used in Plaintiffs interrogatories. ConocoPhillips declines to attempt to comply with
Plaintiffs boilerplate definitions, but instead will comply with the requirements of Tex. R. Civ.
P. 195.
2. ConocoPhillips objects to the definitions of "documents" and "records." This
"definition" was obviously not written to be used with interrogatories because it talks about
EXHIBIT
A-3
_________
which it relies established units of different sizes from 40 acres for oil wells and
640 acres for gas wells, then that is wrong, and ConocoPhillips denies it.
14. Identify by the Well name(s) used in the Partial Releases and the corresponding API
Number each Well you contend entitles you to any Retained Acreage pursuant to the
Vaquillas Leases.
ANSWER: Objection: ConocoPhillips objects to this interrogatory because it is vague
and ambiguous.
Subject to the foregoing objection, the Partial Releases described in
Plaintiffs Definition 19 provide well names and numbers, and ConocoPhillips
does not understand what more Plaintiff wants other than API numbers. The API
numbers are equally available to Plaintiff from public sources as they are
available to ConocoPhillips; but ConocoPhillips will attach, as Exhibit A to these
Answers to Interrogatories, a map from which Plaintiffs counsel may derive API
numbers.
15. Identify by API Number any Wells located on the acreage covered by the Vaquillas
Leases that were not drilled by or for Conoco under the Vaquillas Leases but in which
Conoco owns an interest.
ANSWER: Objection: ConocoPhillips objects to this interrogatory because it is
incomprehensible, vague, and ambiguous. It asks about "Wells," which Plaintiff
defines in its Definition 16 as "wells drilled by or for Conoco," but this
interrogatory purports to inquire of wells "not drilled by or for Conoco," so the
interrogatory contradicts itself. The interrogatory also appears to ask whether
ConocoPhillips owns an interest in Wells on acreage covered by the Vaquillas
Leases, but that are not subject to the Vaquillas Leases, yet Plaintiffs definition
of "Wells" states they were drilled under the terms of the Vaquillas Leases.
ConocoPhillips cannot be required to guess or speculate what Plaintiff is asking.
16. Identify by API Number and rig release date the Final Well completed or abandoned
during Conoco's drilling and reworking operations engaged in on and after November 1,
1990 on the 26,622. 79 Acre Lease.
ANSWER: The well was the Vaquillas A-7 249, API No. 42-479-41635.
17. State the date you contend to be the 90th day after completion or abandonment of the
Final Well at which time a written release of acreage was to be provided pursuant to
Paragraph 18 of the 26,622. 79 Acre Lease.
ANSWER: ConocoPhillips believes the relevant date was June 21, 2012.
18. Identify by API Number and rig release date the Final Well completed or abandoned
during Conoco's drilling and reworking operations engaged in on and after November 1,
1990 on the 6, 740 Acre Lease.
DEFENDANT'S RESPONSE TO PLAINTIFF'S
FIRST SET OF lNTERROGATORIES -8
Dated: July 7, 2014 Respectfully submitted,
L-.--"l~~c.4_~~~
Michael
State B
Email: mpowell@lockelord.com
Elizabeth L. Tiblets
State Bar No. 24066194
Email: etiblets@lockelord.com
LOCKE LORD LLP
2200 Ross Avenue, Suite 2200
Dallas, Texas 75201-6776
Tel: 214-740-8520
Fax: 214-740-8800
Adolfo Campero
State Bar No. 00793454
CAMPERO & ASSOCIATES, P.C.
315 Calle Del Norte, Suite 207
Laredo, Texas 78041
Tel: 956-796-0330
Fax: 956-796-0399
Email: acampero@camperolaw.com
ATTORNEYS FOR DEFENDANT
CONOCOPHILLIPS COMPANY
DEFENDANT'S RESPONSE TO PLAINTIFF'S
FIRST SET OF INTERROGATORIES - 10-
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing Defendant's Response to
Plaintiffs First Set of Interrogatories was served via email on the following counsel of record for
Plaintiff as stated on this 7th day of July 2014:
Gregg Owens Raul Leal
Email: gregg.owens@haysowens.com Raul Leal Incorporated
Robert G. Hargrove 5810 San Bernardo, Suite 390
Email: rob.hargrove@haysowens.com Laredo, Texas 78041
Hays & Owens L.L.P. Tel: 956.727.0039
807 Brazos Street, Suite 500 Fax: 956.727.0369
Austin, Texas 78701 Email: rleal@rl-lawfirm.com
Tel: 512.472.3993
Fax: 512.472.3883
Michael Jung Armando X. Lopez
Strasburger & Price, LLP 1510 Calle Del Norte, Suite 16
901 Main Street, Suite 4400 Laredo, Texas 78041
Dallas, Texas 75202-3794 Tel: (956) 726-0722
Tel: 214.651.4724 Fax: (956) 726-6049
Fax: 214.651.4330 (main) mandox@rio.bravo.net
Fax: 214.659.4022 (direct)
Email: michael.jung@strasburger.com
Counsel for Vaquillas Unproven Minerals, Ltd.
DEFENDANT'S RESPONSE TO PLAINTIFF'S
FIRST SET OF INTERROGATORIES - 11 -
-
RAILROAD COMMISSION OF TEXAS
OFFICE OF GENERAL COUNSEL
OIL AND GAS DOCKET
NO. XX-XXXXXXX
FINAL ORDER
CONSOLIDATING VARIOUS FIELDS INTO A NEW FIELD CALLED
THE VAQUILLAS RANCH (LOBO CONS.) FIELD AND
ADOPTING FIELD RULES FOR THE
VAQUILLAS RANCH (LOBO CONS.) FIELD
WEBB COUNTY, TEXAS
The Commission finds that after statutory notice in the above-numbered docket
heard on October 8, 1997, the presiding examiner has made and filed a report and
recommendation containing findings of fact and conclusions of law, for which service was
not required; that the proposed application is in compliance with all statutory
requirements; and that this proceeding was duly submitted to the Railroad Commission
of Texas at conference held in its offices in Austin, Texas.
The Commission, after review and due consideration of the examiner's report and
recommendation, the findings of fact and conclusions of law contained therein, hereby
adopts as its own the findings of fact and conclusions of law contained therein, and
incorporates said findings of fact and conclusions of law as if fully set out and separately
stated herein.
Therefore, it is ordered by the Railroad Commission of Texas that the following
fields located in Webb County, Texas, are hereby combined into a new field called the
Vaquillas Ranch (Lobo Cons.) Field (No. q3~t 5 400 ):
BALTAZAR (LOBO 6 10470) FIELD 05357 400
BARNSLEY (LOBO 10900) FIELD 05791 800
BARNSLEY (LOBO) FIELD 05791 400
BONEBRAKE (LOBO 6) FIELD 10419 500
BONEBRAKE (UPPER LOBO) FIELD 10419 800
GAUCHE CREEK (LOBO) FIELD 14735 225
CARR (LOBO 10100) FIELD 15874 350
CARR (LOBO 8300) FIELD 15874 235
CARR (LOBO 8600) FIELD 15874 250
CARR (LOBO 8700) FIELD 15874 275
CARR (LOBO) FIELD 15874 200
CARR (WILCOX 8200) FIELD 15874 600
CARR (WILCOX 8300) FIELD 15874 700
CARR (WILCOX) FIELD 15874 500
CATTO (LOBO 9900) FIELD 16405 400
CATTO (LOBO 10200) FIELD 16405 500
EXHIBIT
A-4
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OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE 2
DESPARADO (LOBO 6) FIELD 24394 500
DIAMONDBACK (LOBO 3) FIELD 24574 400
GATO CREEK (9800) FIELD 34238 400
GATO CREEK (LOBO 1) FIELD 34238 300
GATO CREEK (LOBO 1-SEGA) FIELD 34238 325
GATO CREEK (LOBO 3) FIELD 34238 350
GATO CREEK (LOBO 6 SEGMENT A) FIELD 34238 375
GATO CREEK, SE (9800) FIELD 34242 980
GATO CREEK, SE (LOBO 1) FIELD 34242 500
GATO CREEK, SE (UP. LOBO STRAY) FIELD 34242 750
HIRSCH (LOBO 9746) FIELD 41659 075
JURASCHEK (LOBO) FIELD 47740 500
JURASCHEK (WILCOX 11600) FIELD 47740 600
LUNDELL (LOBO 9200) FIELD 55755 180
LUNDELL (LOBO) FIELD 55755 175
MCLEAN (LOBO) FIELD 59725 500
MUJERES CREEK (LOBO 1) FIELD 63668 300
MUJERES CREEK (LOBO 3) FIELD 63668 400
MUJERES CREEK (LOBO 6) FIELD 63668 500
MUJERES CREEK (LOBO) FIELD 63668 250
MUJERES CREEK, SOUTH (LOBO) FIELD 63670 500
NICHOLSON (LOBO 3) FIELD 65469 020
NORDAN (LOBO) FIELD 65934 500
POZO (LOBO) FIELD 72838 500
RANCHO VIEJO, S. (LOBO 6) FIELD 74570 100
RANCHO VIEJO (LOBO 3) FIELD 74568 680
RANCHO VIEJO (LOBO 6) FIELD 74568 700
VAQUILLAS RANCH (LOBO 8100) FIELD 93215 450
VAQUILLAS RANCH (UP. LOBO STRAY) FIELD 93215 600
VAQUILLAS RANCH (WALKER 8300) FIELD 93215 680
VAQUILLAS RANCH (WALKER 8600) FIELD 93215 690
VAQUILLAS RANCH (WALKER, N.) FIELD 93215 670
VAQUILLAS RANCH (WILCOX 11, 100) FIELD 93215 700
VAQUILLAS RANCH (WILCOX 11,600) FIELD 93258 750
VAQUILLAS RANCH (WILCOX 11,900) FIELD 93215 725
VAQUILLAS RANCH (YARSA) FIELD 93258 900
VENADA (9800) FIELD 93436 800
VENADA (LOBO) FIELD 93436 300
VERGARA (LOBO 9300) FIELD 93537 750
VERGARA (LOBO) FIELD 93537 500
It is further ordered that the following rules are adopted for the Vaquillas Ranch (Lobo
Cons.) Field:
Ji
!
l
OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE 3
RULE 1: The entire Lobo Formation from the Lobo Unconformity to the top of the Wills
Point (Midway Shale) and including the above listed fields in Webb County, Texas, shall be
designated as a single reservoir for proration purposes and be designated as the Vaquillas
Ranch (Lobo Cons.) Field.
RULE 2: No gas well shall hereafter be drilled nearer than FOUR HUNDRED SIXTY
SEVEN (467) feet to any property line, lease line or subdivision line and no well shall be drilled
nearer than ONE THOUSAND TWO HUNDRED (1,200) feet to any applied for, permitted or
completed well in the same reservoir on the same lease, pooled unit or unitized tract. The
aforementioned distances in the above rule are minimum distances to allow an operator flexibility
in locating a well, and the above spacing rule and the other rules to follow are for the purpose
of permitting only one well to each drilling and proration unit. Provided however, that the
Commission will grant exceptions to permit drilling within shorter distances and drilling more wells
than herein prescribed whenever the Commission shall have determined that such exceptions
are necessary either to prevent waste or to prevent the confiscation of property. When exception
to these rules is desired, application therefore shall be filed and will be acted upon in accordance
with the provisions of Commission Statewide Rule 37 and 38, which applicable provisions of said
rule are incorporated herein by reference. Provided however, that persons who are presumed
to be affected by a request for an exception to the between-well spacing requirement shall be
limited to the operators and owners/lessees of tracts, lease or units within one mile or less of the
proposed well.
In applying this rule the general order of the Commission with relation to the subdivision
of property shall be observed.
RULE 3: The daily allowable production of gas from individual wells completed in the
subject field shall be determined by allocating the allowable production, after deductions have
been made for wells which are incapable of producing their gas allowables, among the individual
wells in the following manner:
TEN percent (10%) of the total field allowable shall be allocated equally among the
individual wells producing from this field.
NINETY percent (90%) of the total field allowable shall be allocated among the individual
wells in the proportion that the deliverability of such well, as evidenced by the most recent
G-10 test filed with the Railroad Commission bears to the summation of the deliverability
of all proratable wells producing from this field.
It is further ordered by the Railroad Commission of Texas that the allocation formula for
the Vaquillas Ranch (Lobo Cons.) Field be suspended. The allocation formula may be reinstated
administratively if the market demand for gas in the Vaquillas Ranch (Lobo Cons.) Field drops
below 100% of deliverability. If the market demand for gas in the Vaquillas Ranch (Lobo Cons.)
Field drops below 100% of deliverability while the allocation formula is suspended, the operator
shall immediately notify the Commission and the allocation formula shall be immediately
jl
J
OIL AND GAS DOCKET NO. XX-XXXXXXX PAGE4
reinstated. Failure to give such notice to the Commission may result in a fine (as provided for
in Tex. Nat. Res. Code §86.222) for eac day the operators fail to give notice to the Commission.
Effective this ;/,lf ~ay of , 19qg .
COMMISSIO~
a:&ON
~..... ..... Cou1.tJ, To-, .....,,
\
26,622. 79 acres of land, more or less, situated in .. Webb
County, Texas, more fully described in Exhibit "A" annexed
hereto and made a part of this lease for all relevant pur-
poses, including. limitations upon warranty as specifically
set out therein.
"11i~fuW;~~~'i'ri'~~oRA~~~--llM=•~---~F--:UIA•t=a:wm~o:::Do::: ..... ~clinda~......_~.---
littt:-*""-'*'--=-=-•-=·-.. --:a-.io:---..=-ao:::--~~::a.:-::i.,.,_ _ __
..,_.c ••"' th• 11ur£W'M of taltuletin1 tho rental parmenlt Mreinafltt pro.,Wed for. aakt lafHI h n• •mat.94 t• romprbe
26,622.79 iurn. wbt-.hlf It lth&aUt tomptJM• More or 11-.. Five ( 5)
: . !\uHHl 1•1 •h• othH pr1n·t•iDn• h•r•tn tont••nN. thl1 '-•M ahatl ta. fot • lff"' of=1Pit/uar• from '";• da1• fre:J• 4i ..,rirnuy ,.,,...•J
and at ' ut111 u,..,,..11., u oil. 1•• Of oth•r mfhnal J1 "'u.SYctJ frt11a aaid lan4 H la"4 wab •hirla M id l•nd i1 f'W'llUl.J twreun•I•• .
l . Th r••>•l•if"I 11) I• PAl4 ''' 1...... e:• : tO on o;t, } /hthor ,..al t•tOtluC'. . and 111.vfd hom ehi•I tu~d. th• Hn1• 10 ~ .. d•l in,..,. a1 1h1
•tll• or LO th1 cr..t1L of lA•Wr •nlO I~• lJll"9Ju..1 ht "lurh th• ,,ir1 m•1 be tvt1nf'C'tt'\I: IA•"'" tn•1
ltclf'l1 l1mf' tu tun• 1•1nrh1111# •••1
ruud•1 1oiJ 1n 1U
, ...... ,... " ""· a•11r11111 tl''I• nu1rlitl 1•ri. • thPufnr &•O•all111c for lh• fi•IJ •hrrt 11ro.tu11M 0'1 Iha d"t• of 1•1urhaa. : tbl on ¥"'· iru~Jwd.n1 C':t•1119'hf'~•·I wu
or l•lhrr IO••••..,•u• •~l·UalJC'f'. i.-t•.Jwt•l flut11 auJ l••1J an.J MJld 1.1r U•11"1I ofl 111• ••rtnii1r-. cir f•1r 01• .. ,1r111rt111n u f •.,,,..11n.. ut uthrr 1•iul11rt ,,,,,.,,..
frr.m, " ·• 1nuawt ••It•• •1 Ch• 1iull uf 1 It:.. th·•f lh• •n 1u .aid or 1.1•...t.=JAGAO=t-.OFtl~ih'.. f'tf..,. 11 • l!illl •tll nf'I thi1 lu11t or on &t'r•nll• t•onltd th•rtw,,h tn•t raa 1• ri••\ l•1nv • ••l•l or
u ....1. 1......... W•f 1·•1 ••• P>•llr, 0'1 ,,,. ) ... tur• _ntnr\1 l~U, Ll•J"• "":'' u,. 'l"I• nn whi .. h 11 • ••itl Wlf"ll 11 1hu1 '"· nr <': •_tht 1Mn·•h 1 Qft 1oe1, a n o gilS
-"•IJ a.. """'"'u.-.s •f••t ~.~1u to .. , ,.101 11, .. r '" d••'irh•J' &o d
111·•ra t e e.11ot lr.• •t•I \•trn1.,.,., on . 1·,.m111111 0c·• -. 11h rhr "1· 11u·.t1..: rul•·• "' 1hf' H.,i,.,.·4 t'•onl m1a•:c1n of Tt1'.al. nr ult1•r l ••d111 lt lHh .. r 11.y. "' • tw1i \ o 1lu ..,
• •'••lJ, lh llitt ~ -..t,;11u•11 l ol j,.,....,..., &•J••tH..\f' lhr '"""'r"\ Hll 11 h .,, u1I • ud "u ''' a114 u11~r •1111 t hat m•,. t ... l •h ..tun•I fr,.n1 .... .i 1•• it111.• ··• U111 t • ,,.,,..,
( 4•( t•l l hC'tC'•IU1l ..1 • II·•'' h •ll 11Uh!il 1t11 t 1.1il) .. \t'n-•I •om·• ··· t"M1' h IH Ulf'.l. • nil u111t• , ...o l rJ fur at••
h•·rf'Lo¥11tf'r •hnU" n ••l • \11+.. IMll ; ;. l l ) .. ......... In a r ra , • •,
",.,,.,. it1h· t1 ''·''' .1 l ••h •flUH'f' •lf 1t•11 &•c·tr ••11\ tl oo: I lh•·1 ...1I, ''' "~'*;"'t lh:.t th11u•1I 11CnU•ln1Uf'llli.I aulhqrjly h,.•·•!:!at J°u r1 ... l1 ftl,, ,. 1.i·t.... 4"'n 1•1' 1.r ,.,.nn 1t U1•
rr••11; .. 11 "' utut• l..1.;1•r t11.u1 th 11•t' , , .,...,f1nS. f1•r th .. ih 1l ;11.,,.. " ' , ., ..-r.1111•u 11f "•ttl 11l a n•,.:-1.114'f 1•¥'&1 1nn 11r h •r ·ot +t..i o 11.,. ttu, , 1ruurn ,.;;u • 1&hh· tr• •m
..,n,. "-f'U t•• I•· tiri!:,..1. 1t1 1lh11.,• nr Alr ..1uh Jr d lf'"I. "'' ' " 111 ....... flf'f 1· n·MtMI n111> t1u. fo.-n1 •uli"t ... nl1aU)I ln' t l l't" \111th t h •·... 1•r•·"•' f , l4 ·1 u r 1·•·1 m. u~t
hi 11£" (•\rrt1111.-111.1I r r.cu1n1 1..u • . IA·••1• uo .... , ,t,.. l''"~ · "l••11 .. t,.,,.. ,f h utt' l"" 1l ••r •' 11rnt11or ll('rt•tt,(0 ('CJ\t'tt.J lir 1h11 I,.,,.,.. .,, llH)' 1'"•1\ 1 •II Uh·r .- .f ....
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1\• 1•ru\11h... I NII l o 101 i ll ..">' t111r ••f tno1 u • fli t fl.ta fl.ti.I " • tu ···•• Ill •fl) 011it ur "'" '• 11tal a . Th• un1l1 f vrn"J ' ' ' \"•11 111.,· "" t... 1u 1> •! 11.lum u r • lftt.f •
nf'l"1 11111 , ..;ttortn 111 • .,,. o r At •·11 • 1th llw oru t ••r 01111• Hit" •hH"h lhr It·~ '' l.>t•1l"I ur '"mt11h...,I a.•
t•• A1tr .. t hrt • lt" tu1n •ir .,,,,\, ' · "'"' 0 11 uhllt
h•1'"l 1111\ r1111 t 111m, "• I•• M/1•M "' rft: ,.· h • u111i11 . 'J h1• , ... .i.11..c 111 t•llt' .,, 111u1 r Out1o1 11r t·• "h"ll nut '°~hft u~t lh• r i,;ill• 1of thr JA'"'"'"' ''''tl'11ll .!••: to l'"• •I 11111
lr11M1 ••r 1.,1rt ,u1.a lht·11.. •f 1111•• ••tlll'r 111uh. IA·11•t,...tu•U f 1ir fut u ..·111•l 1n lh• a1•111 4•&1rtulie rt..·nrdJ uf tJ1f' ('1+1J llt w in • h1d1 ""' 1,.1 ••··I 1•r1:ut1M·t a re
t1lH.<1t• .. t on 1t,Pfrt111wr.1 1l1•p• r.l•ll• llC nll•I •••·1111(11 .11 . ot( Uu• •" • •l••I ""' r1·.1,:t" a.11 a , ... ,1 , ..1 1uut: •Hui ,, ,.,,n • u rh , , ., ·<·r~t111 un 1!1t' u 1. 1t • h11o a 1..,. rH ...·11'• "'
I•• "U l •nit11•• l1rtt"t11, tl11·1r f1nr•, "un·•·., .. •r•. 41111111 •·~ "1.,; h11 , Hh''"' J·tf'll\r uf •hf"U1rr ur n ••t t he 1u11 t 1• I1ir.f'W1M' r f frt't~\ • 11111 tu • i i uiJ11·r ' '""1,1r• ,,, • u t f •r r ,
m nif"ri.I, ,.,,11;1). ur hlllf'r ri,cl1ta •n h111•l 111d11dnl 111 • ••··h 4 f•1l. 1,• ..,.~ n 1•1)' •l 1U •l...-11•JO ~• rrc•M· 1i. 1•~.oltt1 ie ut•l aur1 a.·fui r ur .., • •., r•1n 1a,r fl' •f•il
0 1... u1\111n • f11r 11f t1 1D1&•!di11.; kl\ 1111 ur ); IUI "''II 1•n tl1• lr 11,...•I L·rt·11111111•11t, a u d lhl" ll\'Vlt•I UU •l n1•r indu•h -. l 111t it i1 1111\ ft.""11111"1 tu ,11r h~1IC', i"11•I u t
1,...,.,.. Ul·"n " tud\ a .... 1 C"t4L•ul· ~.- ••f L''"•hu·111.i 011 ••t .,..•• 1n Nu 111.i ' l 'U•••lll.t'• h•• thuf'"ti ;r.,, .. l'"'n rum1•lf"t1·4 o r lH"lll •tnd\ 111" nll 11110a f.,,
t he
d110110,; ol a •c-IJ fo r .., 1 t•r .,;"•1• h"\" 1hr1r111fvrt' 11'\11 r .. mnu·u··...,J, I n l h e f'\r lL I of 111·tr111t1..11• fur 1lni1,n.,. u n vr JH• •i11r\ ih n ,,f f•ll "'lit",. frt1m • ny
'"1tl oC " ~,c•1: .....1 unit \11!1;rh 1Ju•llt1lt•• ..,11 ur " 1•n r1«•h Hf th.. la nd tO\o•rt,.J t•)' th1111 Jf'1"""· f toM•r•tll"H of •hf'thf't tuf'h hL111•rkt1un1 f,1r 1h1 ;l 1 11~ •f'l f
('11111111rn1·nt ur o111rh l''''"l1;,·!i·•U "'"" M'l'1~r"I l••l1•f11C" • if Aflrf Ut • f' \1~·11ltun ,., l h 1• H.•trutnt•lll u r the' io•trunir nl 1W11111,1u1t111.,; thl! 14 ... 1t..1 utu t, • u1·h
Ol,..fl• l•••IU .. t.all l~ r ..,, ,.,l,.tt'll •• uL..-r1tl h ol1t fu r dn:JiOM "n or L•f'l ..i Lh'ltuU of oil ur w...a fr111•1 l1u 1J ("tl~._,,.,l 111 tb1t lt':Ut' • tit-tht"l or 111··1 u,. •f'll ' ' '
• t't1t 1-e 11.. hl•··l on 111• ••ft•rtllol\'• ("•n,.r'"'t h7 th 11 J.,,, ... '""t 1n t L!r h f \'f'"lll u1•1·t•t ;on• f,,, Jril h n.c 1h.d l t4 1l"'rn"l to havr '"''fl C'umto•·n<'""J 11n • •iii
lu n1i • 1th1n 1h .. nw•hi h.,: o f l ·•rtt,CrkL)h C. uC U11 • Ir~..- ; .. nil lhf' ""t1rr Arr f':•..:• r uot t 11 11tin.r t uC"h u n u t•r uu1t•. •• \o oil )Ultl att\.I, ur 1"11h .. r l"f t11,m.
n 1 brro-11, ' 'l• •\ ,,t....l, ' t ti1dl l,..• trf'lth"t f11f &IJ L•J(11t1'•-·,, f' \ l't"l'I thr l •ll) mt'lll u f royMhH"f un llf•cl11rt :o n fr.,m th• l•utl... t UOi l , fU If 1tof' llltW Jf' "'f' r•
11il'lu•l1.._I i11 f11111 lf'11llt'. l·'.;r th~ p_u n .. 111t• 111 1·pt111 •uti11,.: lli1• ru)u1t1r11 to 111·h1rA 0 "11,. ra ut r u)· u lt1f!t a11•t 1•t1) Jnrnt11 t uJt cir
&• ro-.t on .~in 11 1,11 t1tt:h Cl f tlu• rn
1t1,.IJ 1,.. t'lll.11•..t 1111 , ,, ..1i 1ct~un 11 t 1·11 IUl•I ..:11•. ur 1·11,w r o l lh• ·m , h••m lhl' 1•o11•h..t u1, i1, lt1f'tf' tha ll toe a ll•"'Ml"1 lo t h 1· hu:•I ('0 H'r• d by th11 lt'1tmt!
111;ti irwlti.11•'1 II\ 11 •• 1..t uui\ 1t1r I•• .....·h ••·••• rut,. t rit•·t • :Uuo th" unit 1f t )u • lroiiu <'.,,._.,. w•••U•U• tr•('U • ·ithin t h• u1111t a ••ru ra· " : .. 1rtiun \, f l h•
uil Aial ,.:.••. " ' ... :h.. r ••I lhf'fU, ,.,u.1111....s l r" m lh" ,,..,j,,.t u w t 11ftrr •h,lu r1,n,r · thtt.l u~t for u1..-rat auna on Lh• 5..111!.-t un1I . S11rh 11 lhl<".\ti.1n • h 11ll . ..
l•t\ kO .. rr r :1.:'" 1..,,.,. · t hat IJ to • ·•)', U "•r• .,hall Lf. 11.:.<"at"I leo l h.- • l' l • hiltt 4"D\'f'tf'lt i•r thi1 It•~ a nri indu1tN in thf' ,,.,..,ft.J ut11t 111r t 1'1 ··:tl'h ..,., • ., .., .
t ri..·1 v. :lh111 tt,f' Uhl l it li1i• lt';1"4' t"•nll'r• .,,.,,,.r:1t.• lf"o'l11 \l. ,th10 lhf' Oll il f thfl.I i •ro rut,, l ml"\illt\ of Lhe 11,j a ruJ JCll.I, u r e1'. h f'f ••t \t.f'm, L•f'•l111·r d
fr1tm 1t1f' l"'" ':,.,1 1uut "'hi··h th• m1mt ..·r 111 t111tfon• ••·t..:o• 1·11\'••tt"l ••,. 1h.1 l('a•e i()r in f'nrh 1urh u•1•1ul\t• Hftl'I) •w it 111rJu4lc"1 rn tht' i · 1t1:1.. I u n 1l 1.-·.• r•
lo 1n.,.1111.d 111,mt.,·r "' ,.urfo,·• 1~· r1•11 ~111'11111 .... 1 w 1t1• i •1>t1h1I 11nit. ltu)·ull u• • h.·r t uhJ•r •hl\IJ a..
C'unu·~h"t en t h• l"•r1;on o f 11ur b s1r•1tl Utt 111 n . wtif' lh.. r
i1 .... "'' 1u.1I ··n•. 11r .. ~1twr "' Ow111, .... .,1i...·;1t1..1 tu th('" 1111:.1 ('p\'t•rt.. I 11)' th i• , ..~ ,.. tlllcl it1d1111....1 i n thf' u n il JU•l R• l huu;:h &1Jrh ,I,. ·l11r 1i•lll .. ,.,.
lr•1m a irb l.u t•I. ·n ... 1•11'tllJ" t 1••n ' " '"' :1n ~·ii "'' :1 "'d L t.• • t•111;11i1l•·rt'lll n• l H•ul1.rt 111n hotn 1h.ft lf"h~ or t')il ,.,~ 1lt'\l l1n1i fr um .. b ••·h it i11 J , . ..tud 1.111 an•t
h ut nl ,,r, ..1 ,.·t. .. n f 11°111 ., .::•• , ,...11..I 0111l ; •tt.I l •l'•• lud .un ' "' " l 14 J.:M• • ..II "" ii\ t-e C"on11ti dt"r... t .,. t'r n.l11ct111n horn lhf' ll"n•r '''Jo:"•• 1~ .. ; ....1 unit fn•tn
I
• ·h :"h .1 1• 1•r • ..h ;l·111.: t.t11I n ..t f1t•lh ••• oi1 '".,:... J uf",; l. 'fh,. fu u nutiun tif •nY uuit h•·tt•lntl•r 11h11l1 n Ql hA\'ft t h«> eft.-~l o f C'h&nj.(tl+a." lft• 1l•r.ruh•11 ,1f
any olc:1t) 1rr.1. d 11r ,.hi.it· in ,,,,.,tu r~wn rt•) ult t v.h1d1 mit)' l 14'1·umf' ' '" )"1,1dt' u11dtor th1 • lt-ut'. It thi• )1•;, lf> n1•W or hf'tP1'flitr r n\'f'U '"'~ :1J Kl f" tr .. rtfl , n••
, .....,iin.- tit unl::.1:Htl••h uf ,..,,..,:1y '111:rrl'•t •• l"':•t...n "''' MUf"h .,.~·a rail# 1r1u•1a. i• i ntr11ttf"t1 or •hfl ll t.,. im11l1ed or r.-•ult n 1tritl1 trrim 1h• 1nrh111111n u t
•1.t .. n •••11;.,r;,1e lra•"I• "''ilh•n this l1•a""" 1011' l.c·"' ll4-C ai11all r.~\f"flhf':r~• h11\"• lh.- r 11lht •o pt.1111&I11rnv1d..J . t ...n·e- with fUhll«'llUtnt •Ur..ati11n '>f fl"...lucl1 n n ••
alio\'f l•rrn j,1,..1. As u,., .. t 1n thi• l·'•'""'°'''b .fi, t hf' 'rnr1l111 ··,.•·l•l\U1lf tr11rt'' m"~•n an1 lrart w it h ru1alt7 o .. nt'ra.h ip d 1fCuin•. no w llr h.rrAf l #t, •alhH
u tu &;•rt i.. or •mnu11h, lrum th•l al l u ""' cthtr i•arl ol the lra11o1....1 i •rt mi~. .
6. It 1•1...·ri•ti11n• f.1r 1lrllli ni: nr• nol r onim.. nr..d on u.id l&nd or on acre:tJCO pooltd th•r•whh u aho\'e [lroviJN ~I\ or Wfor• onr. >P.lr frr-m thi1
d;1I•, th• lf'aw "hall tl1rn h!rminatt u lo Loth pattiu, \mlna on CH' Wtore aut'h anniveuar7 dat• LrtHe ahaU &JA.7 or l#ndu (or •h..U ma~• a Lona
fide ott•m~t ID'"''"' «nd«r, in .µ.!l~.QJl.. .N.?.lJ.iQr!~. l ..I3.~l') }< .. 9.f ....~A ?:".~do
aa herolnafttr ot•l•dl to 1At1or or to the I• 1••1·ab le hu.un•lor r•~ardl<.. ~ tld''"'2 ijiflUn"iPof oaiJ land or U.1 rontal•I the 1um otf'.Or.t y-~ ~ gh t
Thou sa nd E1gh t Hundred Eleven/1>o11ar• .. '18, 811. 2 6 .... ), (h.rtin rnllrJ rrntAI•). •hi .-h .t•• 11 llh'o t.h" r1. 111nh·r1r•·nu· ra o f .tr ill;n;r 0Jlt'rati11n1 ni•1 1.,. fu rlhl"r- 1leofrrrf'd ! 1lr IUf't"t"fl~h·e 1'f'riod& of 1• ·•lwe (1:) mont h ' ~t"h dur . n•· th~ 1•r1m ar7
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lllt'lil • or t• nilrra ·
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i " t ot t... in .: 1Mrl
c,t Ul't-.1 tn;\t t~ rn:11lr t•)' tt1l" irhrri· f i t 1inh Of J,....,.:i;.f!!P Jn,"liltJ o r dr)i\'Nrd to \he fl"rtirt entt\ lf'd thf"ff'IO n r l u r.nitl t11lf1k n n r-r t ... ft11 p lhf' 1l 1t~ f' of
i•Afmt•r,I . U 1o~Jl' h h11u l.. 1 r.r :u1y 11111'1"..•i;ur ' ""'M~ ·-.tiould f• il, liquidnC• o r 1.. aUf'<"t•"l~t 111 ft nnt hflr hnnk, nr f••r' any rc-t1ll'nn Intl 11 r rr:'u"'" '" Arrf"p t
'"'nllt.I. 1.. .. ~ ••, .. hnll n ••l I•• twr.l in tl1•f.-uh for f 11il11r• lo Ut1•L.•· 'iurh 1•1umrnt or t rn•l••r of r"ntAI un ti l tMrir t3 il) 111\yl Af1.,.r lA"•.,~·r
l"""""'' a 1.r1o;·1·r t-r~11r•h l • l1· j , 1..1rumr11l un1nifl.C 11.n.. tl1•·r li:1t1k 11• fll.'.rh1 1n rrc·rh·r 111111r h 1•111yMrn1t ,, r t•tL t\f"rt . It f.,r• ~ eh"ll· " ll t'lll' I •lrre • .,.,, 1.11 ni•
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\o • 11d1 11t ll ,.111H••I 1•a)' lnf'l1l 1or .1 .., ..., i1. h tH• ,: i¥rr. 1;111......, nCtl•('r. i n a1·•'ut1lunt"tt ~· i1h aul 1u .. nt 1•rO\' i•u•fl• n f th ·• !"ll 'f'. c•f h i• r i.:h1 I' r "<'r i•·r n-n t .d,
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f ••n1 11I J•ruJ o·r: , ,,., ,.,.1,1,. f u r II·• r 1·:11~J l •rt•o.t ln~·11h·1,I. nu.I th i• lra,... •hnU not l••rmi rrnt• lou t •hi.11 l>f' f'U1\inl•i•\t"11t in thf' 1:oim1• m ahn·•t 11• if •:Id\
11·rrc1n1'"'"" ur ,1wff,.,·t i\' • rrntl\I 1•11)'rnPnt or dt•ltt••ir luul l...·n 1•ro1"frl7 nuutt', 11T•ni1lflll thnt thf' rrtonf'Ou• nr l nrffl"l'l iY• t f' nl ni 1•:•)"h lt rH nr rlr1")'°i1 No
c-orrrr1 . ..1 .,..it ti:n :)(, d .1r• alt r r ,.,, .. it1C 117 l..i·"""' of wri l •rn nol ire frum •udi (..,., ,.,o r o l aurh f"tn>t aC'romr1m:e'1 toy auC'h ltu t rum .. n :a " ' ·~r f' r .,...... ..1try
(1• •n.,.Me l•·P~rf' ''' h1'4ke 11ro11 .. t I'·'~"'""' · 1't1.. du.-n C'hah ' '"r1n •11t i1 .-11n•i1if'r;\hon for t h ie litn~ •rcor-l in .r t•• it•· l•rmt •n•I •ha. ii l\l"C loe ..::.1C'•f1-.t
... " llH·t• r•1.1.-1I f o ,. • r..-rir.I. i.. ..~ m•T at any t imf' o r linw• ,,...,.."'" •n il dr lh·•r to Lr~.or or co th" df'('Olitnt'J ah.n ·.,. n1ut11..1 '1r 1•1.tu nl rf'1"11rfl
A felr11i.e nr , ..: ...'l!>i"t , ,f lhi"' lt.":l•f' u to "'H or anr Jll'rt of t h ,. nt. ,vt.drArrit..;.d Jlrtmi"""•· or o f anr m i ntra1 <'!' hnr ii nn und"r a H <'r •n r ·Pflln thrMf.
•rid thrrf'••Y t• Trlw~ro.l o f all oltli'R111t1ona •• to lh.. h":t'aM-.I land or l11t .. rr.'it. U t hi• 1f'"M i• r"lu ..,.t •• to atl minPrAlt and h o ri ron& u nrl.-r a i•ttrt :on
ol •he land '''""t'"'' ,,,,lhi• I••~. thr rf'nl&l• and oth,r J•nrn\•nu comri111tod tn • ctnr1lanre th•rt•it.h aAall U\•r~upon be r ...,ur"'S h\ t~•• prn1"'n to"
th.t 1he n11rnh.r of 1wrface &l'~a • i lhin. l\.lrb fltl•ueJ portioo bear• to tbt totaJ number of 11.1tfate s.crte wbSt'b ••• ('nY•rfld ht thia Jc ..• imm4'11a t•lr
prior '° aut'b ,.1.....
4GO
. I Vnt. 4Gn r·.~r 326·
I . If a1r Jor f •\ 1li•··•t\rl' " " '' L''""l11r ll11n or ulf. " " " 1•r ••tli•·r mt1oN" I ,,,, • l\l•I l"rnl 1•r un lll"trtt~'" ,.,,,,J,.,I tl1f'rtiwi1h. J , .._.,,.., •••·,ulit 1lr1. I '' olr y J,,,;.
h·•I•·• l l•"••·,111. "' If " ' ' • r •l•h u\ 1•rr- lllt••I 11r 1..t11<"l 11•11 t • ( 1111, ) '.k• ••t ••1fo••r 111110 r 11I. llu• &•lt"llurJiun r11•·rt•• f ..h1111 l•I 1 • ; u.tt f1 •111' n11\' , " ''""'· 111 .. fr1o••• •11..U
flf
h ••l 1.-r111lh HI" 1f I 1·••1·r • ••011111•11r,·• 1111•·f11t 111r1• Cu r 1lull11tlo' or r•·• ·.,1!.111..: "-"1ll111\ .,,,t 1.;11 > 1l n.t·• l1, 1•1t'.1f h· r 11r 1f il 1.. • 1tt. : 11 1!,,. 1•r, 11o: •r v 1' 1111, ,. .,,,..
' """ .."• u r 1e· 1111111·• lhl' 1•1H t11•·"' t•r l••111l4·r ": r•·ul a l• or t'o111u11rHl"f'• u1..-1,..c1on• fut dr; H1nt1 ur r1•.. 11rlo111j( ••n ur llf'f•u" th" r •·t•l• I , ;,.,.,. •' •l nlft n,..,,
• n• o11··· 11(h·r 11... . . ,I 'll · · ····· ,,, ,.; , 1 )' j·h~· "••In''·''" ur 1"'u11,1d ..r1un .. , ~1r.- f111I·· .., ,.,.......1iun fl( . ..., ......,....,,.. II at •II)' 1 1111• • •1l···•.. j•1••11t .,, .. . .. , ,,,.,
11.1• • , ..... r '" 11,.. •·• 1·1111 .. 11.: ••f 1l1f> l;1•t ~1·;, f ••f 1111' 11r11u"f J' l1•rr11 111111 l •f~ur 1o th" 11,.,,.,,,.,,1 of r•il , 1::•• •1r 11•tu·r 11111wrnl t111 • .1119 l•t111I. '• ' ••n .nt'f•·•· •~•
, .. ,.,Jt<,t 1111·1""'''11. I .. .. ~. ,. "'h"1~l·6 1lr.1l" 1lry 1, ..lf" Owt(..111, nu n ·11tnJ l'IU'lllt'fll ur 111••·rati11ru1 ure 11t•1·1•, ,, afJ Ill u11h·r ln ••·1"'11 11,.. 11•;1~" in f• f"'" dor1nJ(
1 In• f1·111a.r1·\•·r "' ! t .. • I'' 111<1• )' lo·• Ill . Ir lit lh•· ,. 'jllft1li111t "' I hf'I l•l lll)lllY I 1·'1n, tnJ. ··.a• ••r ,., ...., u11111·t11 I '" r111l tl-f'i n 1~ ,., ...a.,... ·I t1'1 ,. ... t I i.1111. 1.r ,,.,
11r•r:H·• ,., .. 1),,t tl1f"1•·\\llh. ~ dlt l.r· ..•• I• t!1••11 l'U•'.•t1~1'il 1n •hill1ni.: ur T11\\.,.r., 111.i u&•1•f:1l1uUt llH•n·••ll or •111111 lu1~• t'ntlll•f,.1111 "oll'v 11"!" tJ11·f• "H 11111htn
••\I~ ,1~u 1 11:1 •1111 1111••r lo 1~1 • rn•I u( the 11ricn :,rr h•rm, th• l•neo •l1n.ll r1•m;1in i t1 f11r•'f" 1r11 lnn• 11• 011rrfllf111n11 ''" •:•uJ w•ll cir f•.r tlrill1t1.1t ••r r •·• ·111 lrntf
uf """ 11ol•l111 .. uul l\f"ll "''"' l'l""''#°u1,..& "'•Ill Ill• 4"1"";'''"11 u f 111.. r• lh.11• •1 \t\I 1 ~11, '"'"'".. rutivir ilitY•. a m l i f 11.... , rf'•11ll 01 ft1.i \ •t••l11t'ti .. h " ' *>11, -'"" nt
o t! w r n 1111.•1.1I, ' '' l" Hil lt1•·r,. .• h 1•r AS 111 J, J::l• P r 1ttJ1t' t' 1111n('thl i • l '•"•h1t••i f~ u111 r a i,I l.1hd r.r Al'rt·11.r• ,,.,,,:t"'ll U1C"r.. ...-i1h, ,Ar. / 1~~ .1, .. 1 ,,,,it •I•-. .::' •"' '"'' L,
1.,..,..,-c i rl a r r 1r1l.t1.rr • 11 h lli • t..ru.e h•tf"l•f mny t .. d .u11h-f'CI f,r
0 J..,.,,,.,.. l1r i 11,lnlf11f'nl f .i r"'t tor , ..,.,.,,) ;,. Ott! 1tt11ro1•ri-.t•· r•·1·•n .h u( rt1" • •1LJht1 1n
•hiC' h Ch• 1... ,, ...1 1•fr 111,,.r, 111.ro 1 11u"t~I al "nr 11i1o., after t t1 ~ r11m t•le·lnlll 11f a dr1 h•1lr u t th4 f't•11111:1ti1 •n to( 1•r• " lurr1 .. n 11n ~ ..1.J 11111! 111 1J,,. ...:.. 1ot • """"
"' ' '"• : le 1•rol•1o .11,.: ••ii ••r " " • 1n 1•:1)"111w ~·11,nl it 1re 111loold 1.,. l rn11whl in nf'I • •IJllirf'nl ••mJ-=-ftft:;..mwt~"1Ro:fi>tAili'~=t1t;:tr, :r.r.:11q: r;."':q "'"t 1tra.ln i nw-
0
lh1· lr.u•-.I l''' ''""' •. ,,, orf•·••"•' ' "·ml...6 lhtrt•1th. IA·U~<' •.cn1·• to ..anu tu•:h ttflM:l •f"ll• u a rt'11 M•n11My ,.,,,,,IC"f1t o,~ratot • hlll•I tltiU \u ..ln th., •Aln•
11r 1.1111:ar ,,,,·.-11.•10111·4·' ·
1. '"""'.'I'·•
fllh:dl h:i\,. 1t1- ri~·ht ftl aov lime flurinll ()r "''"'\ht f!'11irat~on n f thi• Jt11'6 to rf'n\O\'• all l1fnl•l"r!J fth•I fhturl"I 1•r1v•·•t b, f.it1""t n"
Mi1I lnwt, ~11rh111Lu~· Ill•• 1ud1l lo 1lrnw a111l n•m11\·f' ftll ciuin;c. \\'lit>n r<'ltlfirr1l 111 [A'c"nr, i.,..,.".
wHI t111rr Rll L'il •'" lin•'ll t ..·luw or1lin•ry (•l 11w dot&1lh,
a n•I .,,, ..·rU .. t ml l 1•• 1lritr1.. l "-ill.in l •'U huo+frN 1:.!u~> f•"f't of Al'\J rH1dt'ru-• or l1iun 11uw un •n~J l:u1•J • ·i\hout J.1·,.,,\11r'• r1111t-••nt.
P.. Tl1e r ;..:!•U 11f t•i! h··r l•"rrv ht-trnnit.. r m•j 11111! 1111ui.rn,..1 In whhle or •n r•ttr1. •nrt t he rrn ¥i1io'11 h,.,,..,, 1h;,U ,.,,,•tul to tbrir f1..i n . 11 tJuM ... •1rt
•n·t "~~:.·ra ; 111: 1 110 1·h a !..... 11r •li vi1.:i1n io o"nt·nhiJ• uf thit l::uul . rf't1tnl• or r u >nlt i1·•· · h ·••t•\'f'r •rrt1rn11:i•l1f'1I, a hall •'C·•' r 1'1r tu 1·td:1fJ"'t th,. ••t,J;..:;i~
t1·in• flt .t1t111n: •h fi•'"'" •" ,....,. •..,. :
l tt f> ,_n,f· flO ("h :\fll'.I' nr 1t1 v1J1l•' ll In •11r>t ....... n.·r11f1 i p el1nll 1><" h ind111i.: ''" J.--,.~ t1 rit i l t l1 Jrl \' , :11') 1 t la; 11 nf ~rr r.....11...
•h:1:1 n .1n• t• r n f •11 t ii ..h· .. l t.,. u·;•1· : rrf"ll \J. S. tn;ul nl f 1!1<\f•1•'• s•rinri1 ·ul a•lal"'r ol ' "'"i11rM •·ith • 1·f'r t if i•"I n 111v " ' ,,.,.,,,d•··I in ~i111 ri1o·:u "' u 1• 1r 11·
ffl••llt• ··~· ••t..1u·1t1·· "'!lfllO'. 111 1 :~·· 1'\"1°l1l nf "lliti ..:urnr z.t ~l rtro( ' n !i\holf' or in 11:ul. li:d.iti l)• for tirrat"h or
n nr ol1ti1::ilf11n ''"''" Ul.t .. r "'""u
(t4t .. ,..i... ,1\t'l7
11:•••r1 lh.. tm11rr ,,(th.~ i, ._, ~,. ''' <1f n 11••rt.,•t1 1twu.. 1( v.· hn r1•n11u111 •u•·h t.r..:u·h. Jn the t'\rflt " ' lht 1l1·:1tb ••f #llt\y i·•·r111°11 f" nt;tl•"I \• • r•·ntAIJ her.-.
UIL•l1•f', IA·o; '1.'t' 111.1v C•ll)' t1r !f•h•lt·r 11u.-h rr11 t:lla tn lh1t rtf"•l•t fl( ll1f' d"e":l'••l ••r thf' 4'1 t-ud1 I f'rt•m't ••r tn ttitit
J":r1t ru.. lit in t tu· 1l••l"••i1 " r)' nanll··I hurin; or, al 1...... ._,..,·1 1•lr r l iun, the 1•rt11 ~1rti11n:-i1.- l•:t.rl n ( 111ai1I , ..111Al't tu .-hirh 1":1."h l• :l~li"'il1!'t11 t i~ f'"1tit1f 1j tn"J
I
•·• 1•:1111 nf tr n•l1·1t·•I lo t1 im 'w1•;11 ,1111..; , f\r to hi• •wl•MHlf' rr...t :l in • aid dl"t" •~ttur, : ~~--llNIS~U·mtmr=la:mqc:~a:uc~D:icpldlila::.C::Ole
m:da:i::mmumm:ac:us:: aui:bmo:t.:::imdaA:a~1JaA:;im::la4J,u.c; ln f'n•n!. 111 "'"'"i~ nmrut of th i1 t..:i.. f' h~ to • &r~r.-.cat ""l 11u n i11n ••l ""i
1 l"rul, ih1 ·
' " " ::.:• ~·":tul1.• hrr,·u n ct•· r •hAll lit' n t•L" Jfl 1unnl·lir •a l)tlt.,·rrn thr ~ \·rral lf'.U·• ·h n r.t uwnrr• ratnl.ly •rrorJ1mt to thr • •irfar• a r1·a nf . ......., . • •t•I .1....
h 111t rn rrf'lt11.I 1•u)' mtM l1r 1111fl ahnll not "'''"d the riwhta ~r o' hr-t ).,n1oP.h nl1I ownt rt h.-rf'ttnder. If 1i' o r tnon 1tlltJH l«1;rnt t n! it lflltt to ro1 n lrJ
tlrt~U n•trr, .i...._,,.,.., '"">' • i 1hho1d Jl:l)'tntnt tJ1crtuf u cdt-,.1 •At.I unl il furni11bt'Ci with • n curtJ:1i.l1!1 inttrumr.1t u:ttul~t lt1 all 1udl , .aui1·1 dni1:notin1
an • .;t"nt 'o rC'C"t'i\·e ua1m"nl for all. · ·
9. The brr:1rh tir Lr"!'"f' of 1t.nr ul.liw-"I inn ar•~irur: htr~un1t .. r 111hAll nt•l 'f>•lrk a torftitur~ or termlnntion of 1hi1 lt:u~ nnr r;·uiPe a 1..rrninl\linn
o r fl"\·rr111tin 111 til•• f'!llt:lt4e C'rP'Lfrd hf'r•t•y nur •~ i.;rnornl• lrtr C'l1nrrlhition h..,t.. 1f in 111·h11l11t or In ln,rt. Jn lhe l'\'tnt lrnur t"IJlllitlf'fl U :1t 11r14•rnti•>n•
are n11l al ar11 t 1tnt t"'m.: ·C'flOliurl""1 in rom1•linntt with th l1 :1r11I 111r1· \l•·H l ·•' I" ,; J·• ;.,., ,... I h.~ 11!1
a rr.. nt:t l1)lt"ru1.r• ru1t t n rint'\t IO';i of ''O M'rfl of th1 ar~• reulnect htrtundu and ca 1 al.I• of 11ruilutin• 1 11:•• or oth•t m ineral in ,.;,y iHlt qu1an1itin.
lo. J.r-."''" hl'rtt1.7 ..-arru nte and •~rt'l'S to dt"f•nd the title to uld 1an•t and "Krttl thitl IAHH at lt1 011tion m11)' ttl&C"hnnre •tior tA>. mc1rt11:h'e
or •lthr1 l1 rtn 11t••n • n icl lnn1I, •lth,;r ln •hOI• ur in s•nrt. ""'I In. •vtnl Ltott •l•lf'I • 1>, it 1h11ll 1.. 111l1ru~l\h•d to •urh lilfn ""·~th ri.,;ht •o f'rilr.n• •:lnir •hd
0
"''l'I' rr111:d1 1u•.1 r u)' flh14·' "nruin.h htrt•u111lf"r Inward ••lilf.t· lhM Hmf'. Wi1h11ut im111tim,ent of IAUl'f' t ri..ihtl \lndrr tt1r -.·nrra111r I" •1rnt n f
h11u"r hf lat!,., H I• tl,:ri ... t thl\l 1f thit l"n"~ t"11\'f'r• • ,,.,., inter••t in the oi l. •••· euft1hur. or other minu•I• in all or •n1 L)art of 1.• id l•n'-* lh•n
l hr- t'nlir .. 11n•I 111. .i i,,·l.i. ..1 f~ 111inwl• H lntt '"'hPlhH 1Aa1tOr'• int..rC"U Je hn•in •1•eorlfi"'I or not), o r no lnlHHl th•rtJn, thN1 ihr. r e na 111·1, . . .JC
P~~S::...ZIR:lncmca 1tr1·ruinac froru an1 11ut a1 W • ·hkh 1hi1 lr-ue tuvf'r1 ff"U rh•n aur h full inlHHI. 1haU 1.,. 1•ai1I ••nlv ir1 tn• 111111 ..•1 \iun
~:.,~~·~·f,.~t~r:·'!';~~:. ~i~tie i~~~. •;; !~:~i·~·.:~~·~ =~,i~~:i'~~i~.t~~'ti!~'p:::;l:r ~~~l;;~~-~~~~. ~b~
0
·htrtun•l.. r ahal1 not iowat r the ri•ht of l..t11N to ttllute ror•lliH.
:=.
•h1rh thP i1;:,., .... t it.1•u •1n, if a 11r. C't.\'f'tf'1t h1 thi1 ltklf', Wu1 t •t lh• wholit •ntt undi,·idf'1I (ff 1imrl1 Ht&t• thrte~n. All rn)·11.lt1 lnh·r.-.. t ""'"t'rf'!lt l•r
. ~F::f!:. n~t •t;.,i;:r:;:~~~~,. !,:!~'1'~ai4
ll . .Shoulot a.... ~.,. I"" flrP \f'nt rd f mm complrin• wi;1h •nr ir•,1t.a• nr im~l i !Pd C"ov•nant of thi1 ll'Aa.t, f'1>m f'nnduC'linw drillinw nr r••otldn•
OJ•f'rallu••• thrr ,... •n of hum irr oo.lurini{ nil or M'M tt1•'l'f'lrom tir r•""-'" of a1·nrri1J <"If or in•t.llity lo nbtain or ll) UfN! .,qu'i11mcf)t or m \lr:ial , or br
oprn1tm'h nt ft1 r1·• maw11rir. ""1 ...
tdrtal or flt•t• J•w ur Ah)' nrd•r. NI• ,-.r rf'l(Ul:oi1iun uf ~ovu·nm•ntal •uthor•tr. tll•n .,.hilr .o 11r•·u"' '"·I. IA'HN'•
-
nld•.:ncu•n to r11111:•lt' "'•lh •urh rnunant 1h11.lt 1.• •ujl1•f' rut,..1. •nd l.ru~ 1hall not l•f' tiAtde in d•mawH for failure lO C'.tmplr tht1•'""11h : a r.d thie
t.,"..,. ..
t.:111 1.. "''' "'1di.. t ""hile An•t eu l••h• •• '""'"'""• i • 1·rrv•n tf'd t•r an1 tu.("h cau~ from C'nnd" '"t in • dri.111n• or nwn rk;nw oJt4"r"tl"' • 'n n r trorn
''''·•hu· .r. ~ ui t o r .r11• ff nm th«" lf'l\M'd 11ru11tw1: an,J the tun• •hil• IAHH i• 10 prev.nttd 1haU hot be cuunttd a1•in1t IA11•"· anf\h10,: Ira thi1 k&lll
'
__
LO the t '1Ulrarr n1,ta·1lh•tuwlin11.
·- ---, - - --- · .. ,_,_-.,,; , ......... -
··.
l
·'
1:
I
12. It is mutually agreed, notwith~tanding any other provision
. '
herein contained, as follows: . ·-· ·
(a)__ Should Lessee be prevented from complying with covenants of .
this lea~o by reason of conditions or acts set forth in paragraph '11 1 .
hereof, then Lessee agrees annually to pay to Lessor an amount equal
to the delay rentals herein provided for during such period of pre-·
vention, whether same be during or subsequent to the primary term,
and such payment shall be made at the end of each year of prevention
either to Lessor or to the depository above named for credit to tile
account of Lessor.
(b) This lease does not ·cover or include any righ~~r privilege
of hunting or fishing on any part of the above described land, and
Lessee ayrccs with Lessor that neither he nor his assigns.or agents
or c~~loyees of his assiqns, will bring firearms or dogs upon the
leased premises, and should this provision against hunting and fish-
ing be violated by any agents, servants, employees or contractors of
Lessee's assigns, any such person so violating same shall have no
further right . to enter upon the leased premises, and such person shall
be regarded as and shall be a trespasser on the premises of Lessor
and be subject to the penalties imposed upon trespassers under the
laws of the State of Texas.
I (c) It is expressly agreed and understood that after production
of oil and gas in commercial quantities is obtained from the leased
premises, the minimum annual income to Lessor from payment of rentals,
shut-in royalty and royalty on production shall be a sum of :iot lc!;s
than 1~o ($2.00) Dollars per acre on the total acreage retained and
then covered by this lease, but this provision shall not impair tht:·.1i L!lst.:ir..;!:.1; .1ny .:.1r.h~c · p:-ovi.sion lv:cC?in conc.:iir.~•J, thi •~s not i:-,-=J.u~~ r.l1n·.? C.ll.:.i or:h~: c.~ ..
' : ~ ~. ' .: l:,, ~;i..! !:Ul;J:l~= Jad i:ti :""• .::: .1~ !.; :,:-o·J·..:cnci u1:.~ oil .!:ti ';cl..;, ...a~ £. ·.!~· .. v=
.-: ~:· :~~ c ~;.;.:;l1~._:~s iro::i !:!h.: 1·:.::.: .> ,:: i.Ji~ .~ st :ii:c ~ ~ r~'- n 'i~ .:: n t:~ ·.!, ..1~ G. r•! : ;·! : ·:~:i
'.. :'.::':..) h!. ,"'..Z:!l(, hi~ f.~it' S ..ir,ci J~ !.i if:-.:.i, 1'! l ~ mi n ..:?!" .ll ::.t Gt:-:~r t h .ln (JI! o:.!. ,
;~ : . 1~~ ~~!~~u:- .:i~~ ~i~~r.:il~ t~.:ic ~~1 =a prod~ccd w1ch oil and ~l~,
!,:- ; .~ i-: i.i ..~:·~?:~s5ly aq:-~~d t~~:: '<;,?s' ll5 U.:ied h~rai:i inclu~cs <;! .:.;.
co~~~n~ac~, aistillat~ a:- anv other aJ~eous subst.Jr.cc or any oth~c
oin~ r3l pro~uced with oil .:i n~ q~s, i~cludin; sulphur .
(c l The right to pool un~er parac;ra?h '4 • o f this oil, gas anc!
n:~e :~l lease sh~ll be limited to lease or leases on land belonqirig
c~ ~~'sor herein, or in which Lessor owns an interest in the oil, ga~ ~···
~r:~ other minerals. -
\
I
(fl Commencement of operations for drilling of a well for oil or
gls to a depth of 5,000 feet or less shall entitle Lessee to· a credit
o~ the rentalsmquired under paraqraph '5' hereof only in the ~~dunt
of s1,zao.oo, but if operations for drilling are conducted to a depth
belcw 5 ,COO feet, such credit shall be increased from $1,280.00 to
~2.560.CO and Lessee shall, by an instrt;111ent to be filed fc~ rcco:d
ir: i:.~H? office of the County Cle rk of Webb County, select and describe .
u40 contig~ous acres as to which rentals are to .be credited if tho
~~:1 is drilled to a depth of 5,000 feet or less, or select and describe
i,i co contiguous acres to, which rentals are to be credited if a w~ll CO
i5 drilled bdlow depth ot 5,000 feet, and pay~ent of. delay rentals or ~
?rocuction of oil, c;as and other minerals is to be required in o=dc r ~
to ~cntinue the lease in force and effect as to the remaining acreage, ~
~nd su=h payment or production shall elir.tinate requirement to select
deres in accord.tnce with above provisions .
(gl ht the end of the primary term hereof, Lessee covenants an~
~q:ees to execute and deliver to Le ssor a written release of any a ~ d
~11 portions or this lease which have not been drilled to a densi: ~ of
~~ least 40 acres for each producing oil well and 640 acres ror each
?r~=~ci~g or shut-in gas well, except that in case any rule a~optoc
I
by th~ Railroad Cor.unission o f Texas or other regulating autho:it;• ! or
any field on this lease provides for a spacing or proration establ i sh•
inc; dif:'erent units of acreage per well, then such estanc!o:\.-::ent c: ~.::a
.:i::;:il ·.; .:~.: • ..i~ wh ich ti.:::e. Le saee :;hall exec~t:e a cd ci~li«•ar co ~ :o!s:;o: :;aid
~ric~ 0 n ·~~~1se, ral~asinq all porcio::s of the 13&se not t he:: so ~ ~v~ loped.
(hl It ls ayre!~ d that where the Lessee hereunder enters into a •;t1?rmi nation lie made a t intervals no greater th.m
two ( :.! ) ye."lrs .1part.
I ( il 1.1:s:ion.:il property u f l..tii;uu r, V.1')uil l .1i;
r-----------~------ .................... .·'
~
nanch Company, r.t.•l., ricc<1Rioncd by°, arising out of, or resulting .from
operations by Lessee, his agents, employees or independent contractor!;
on the land hereby lca.scd to Lessee. Lessee also agrees, when rcqucs t 1·d
in writin.0
6i.o . o
6J.O . O
61i0.0
659.96
640.0
S.1/2 1666 2253 1166 CCSO & RGNC J28 . ]')
N.1/2 1666 3142 1166 CCSO & RGNG 328 . 7')
468 2255 236 AB & H 659. 111
467 799 236 AB. & H 61iO.O
1635 1797 17 TC Ry. 6J.O.O .-.-
865 1'438 12/2541 H & GN 640.0
1683 1115 ·1175 CCSD & RGNG 640.0
1691 1267 5446 GC t Sf 640.0
1696 1'418 54'48 CC & SF 640 .0
1695 1268 I 5448 CC & SF 640 . 0
279 (pt_. only) . 1353 3702 CC & SF i.sa. 2
1004 2421 2/105 J . Poltevent 634 . Sll
GC & SF 61 J.Oli 0
1692 2419 5li46 M
1693 1269 51i117 CC& SF 640 .0 M
2112 2~20 t 1925 631 B. F. James 627 . 12 tr.
3700 GC & SF ··64o.n ~
276 .... ·2552
228 ' 2550 I )i.11 CCSD & RGNG - 636 . 93 0
227,, 1133• 1344 CCSD & RGNG 640.0 u::>
988 2593 2/103 J. Po I tevent 637. 10 ~
98]'\ . 206'1 2/103 J. Poi tevent 64fJ .0
273 ~ - 1141
·1336
131f9
3700
CCSO & RGNG
GC & SF
6'40.0
61i0 . 0 . ~
275'\
277* - 1337 3701 CCSD & RGNG 640 . 0
CCSD & RGNG 320.0- •
S. 112 .JI, Bh>ck 2
. 25, Block 2
I 043-
I Oli2
453
'452 CCSO & RGNG 640.0 (""' E
N.1/2
.232 '1
233.....
51, e :ock 2
259 (pt. only)
'1955
211+8
1117
1045
1137
1328
1346
13'47
460
1074
4526
CCSO f. RGNG
CCSD & RGNG
CCSO & RGNG
CCSD & RGNC
GC t SF
462.70
455 - 9 - •
320.0
600.D
640.0
""0
-~
~: ... ,
'>' . :··
.
..
302 CCSO & RGNG 652. 2;
2057 985 ~·
' 2060 -!pt. only) 3329·30 303 CT f. H 41i0,0 ~ ,,,
303 CT& H 321>. 0 '
~'"T" .. .
E.1/2 · 2059 . 984 . -..,, I I
E. I /2 •I 9S3"' 1329 4527 GC& SF 320. 0
- 1627 {pt . only) 1324 li683 GC & SF 160.0 C(j 1• ·' .
.1629 irt. only)
w.112 ~ 1662
E.1/2 161i8
1275
2230
2441
4682
116'4
1157
GC & Sf
CCSO & RGNG
CCSO f. RGNG
292 . 6·i . .
329.3''
325. 7!;
..do:
> .. :
. ..· : :.-.
W.1/2 1648 3301 1157 CCSD & RGNC 325.7~ -·
-26, .uock . 2 '~ 452 R. O. Barnsley 640. D. . .-'.'.\ -~~ ~·
. 2335 3025 School W. Brown 27 . 3 . ! · ..:.
~-· . .
E.1/2 . 19SU'' 2~60 li526 GC & SF 327. )L ....:-. -.... ~.
Lessor's warrant? hereunder as to all of Surveys 987, 273, 275, 277 , 26, the E.1/2 .of 1 ~53,
E. 1/2 of 1956 ~~ ~ 401 .9 acres out of Survey 233 (all except 5li acres out.of SW corner of said
Sur. 233) is ex;Kessly llmlteC: to 1/2 of the executive rights In the oil and gas .rights In ·
and undcf said l~nds, and as to all of Survey 23 2 is expressly limit~d to 4/5 or the ~xcc utive
rl•1ht~ in tht> 9i: .ind gas right s.
The ro l lo.ilng p.uere'> of GC&SF Surv,•y '/79.
(~I lll ..c.k II ilS per thu E.O.Cli1!l•1ctt Sul.Kllvhlon of n•cord 2 Plat ll··~11 rJ •, 2'1, Wo:bb r .... 111v,
rnn t a inl 119 40 .1crc'i , bcln9 1111• NII I/Ii of SE 1/1+· of C:CSD ~ KGNf. S111\i1·y ? '·'I .
(6) 1111 of th•: W. }20 .1 crc ' uf S•il,v· ..... 16/9 duccn U {140 ?o,~lnllnt ~ Sii1lon1r1 Co •• llou110~, T,~11
• ·\.. ·• ·~.,ViJi UO Acr.1
Po0ll11r- Pr:ovl1lo11 •. I
if• ,. OIL, GAS AND MiitJt'RAL LEASE AMENDING OIL·, GAS AND''ntNERAL_
LEASE DATED JUNE 15, 1974 (AS AMENDED) BJ;TWEEN LESSOR-AND LESSEE HEREIN
26,622.79-acres of land, more or less, situated' in Webb County, Texas more
fully described in Exhibit "A11 attaclted···he·reto Bnd made a part Of thiS Lease
for all relevant purposes, including limitations upon warranty as specifically
set out therei~.
"""""' For lli• 11urww of cakul.ilnr th• nntaJ 111:rra1nt1.1i•rdn.ti..r pnivl~td for, uld Ind lo utlm11..i 10 coaiprlM .... ?.~_,_6~-~ ..:.?..9 ....
··-··---·-----;--...acr.. ,_ ":h•lll•r It 1dul': ~prlw1 mor• or,, I~•.. . .five
t. Svbh•:t to Ill• othr proYhl11111 bu•h1 oontah1.!!, thh' In.. 1h1.ll ~- for & 111111 Gf Wtt 7Uro from. \bit due (olltd "prL'"1r7 tum.-)
and ~.J?,- llitnt!i..r .u oil, ,u or oUl_\f" "''"'~I .h.11~11od frolll '"'1
I•. nd or lan.d wl!21_ •IJJcll nld l1nd 11 ~loci b.,oundoc.
'il'>h~eri)i~M! ~ !l..rtgt.J.P~?L.~2-~. t.f-olf~1f~~~-li~not!ib.P'lf4~~.~ Mi .-U-1i=~J!1R~\!1, 1l~t..0Jllrv'°;~.~t ~. 1
·
••II• or "' tlit credit ot Woo~ 111'° Ult p/PtllllH. 10 •1ilc11 t.b1 -.1r. =•r bt unnt-=i..d 1 Lt•-.al ·J..tf..
111.,. fro.r.a llnit 10 Lime purdl1M .,.,. ror1llr oil Jn Ju
P01 ... 11lon, P•rlnr·the"nnrht Prln th1t1for"'11r.hllln ·-tor th• neld •h•ro · roducod on· lb• dcte·ot·pyrchHU (\I)
EXHIBIT
B-2
_________
Jgl
.'b-'
'"l·
. 0.
...•·'"·M.J .
•' ti) J.
1:1
---------·-·-·----
STATE 01'------------·} TB:LU StNGL& J.CKNOWLEDOM&HT
COUNTY OF.-..- - - - - - - - - - - - -
pen.ot1all1 1p~1rtd .•. _ _ __
---------··-----------------------------------------
1tnow11 i.o m1 to 1H th1 Pinon •• whou 11....,L_, _ _ _ ,__..111b1erlti.d l.O U.1 roroio\111 l11rtNm1n\, a11d acllnowlld1td l.O m1 I.hat _.b ..... u.c:u~
th• 111JJ11 for \bt PllrPOltl and aontld.r1Uo11 \bt.rli11 UPrthld, ·
Olnn undu 1117 hlml and ual of autet, \hll tht-----.d•7 1 1 f - - - - - - · - - . - - - - · - - - · A. !;), 11---·
Nota'7 Publll In 1114 tor--------Cou11tr, - - - - - -
STATt O F - - . - · - · - - - - - - - - · - · - } TEXAS lOINT ACKNOWU:OCM&HT
COUNTY O F - - - · - - - - - - - - Stfort mt, U.t 11nd1nl1ntd, 1 Not&rr Public 111 and for nld Collnt1 and S\1\4, on \.bh du- 1>troonal17
C\011 11ndu in1 b&M and Hal of oUlct, \bl.• \ht..-----d17 ol--
No~U'f P11bllc In .ad for---··-----·-Coinlng ~O acre~, l1~ing the N\.I 1/lf of SE J/l; of CC:SO i RGNG Survl·~· 259.
(6) All of the \J, 320 :i.:r~·::. of Survey 1629 d<.•scribi?d and included In O&G Lsc. tu ();1nlel A.
Pedrotti dated Sc-j'\.-;:1h1.•r 2~. 1973, a,s amcndi:d.
T~OP00121s7:•
--~---~-.---
EXlllllT I
C1lcul1tlon of toy1lty to bt SNld on t••
d•~l't'•r•d to L••••• or Afftll•t•• far u11 (Ind
nn for renltl tn •ccard1nc1 'llth p1r111r1ph 19.
'tlnclp1h '•Y L111or roy1lty bind on th• 11r11t1r of the v1l;ht1d 1v1r1;1 ptlc•
peld by th1 thr11 l1r1111t vol\ldtrtc p1Jrcb111ra for th• c1l1nd1r quarter
In th• 111t q\llrttr of Vtbb COl.lntY or the v1l11httd 1v1r1;• of the prlc••
us1d by tilt L"•or for roy1L tY pt)'Mnt p1.1rpo11• a
0111 sources rntrVY Pl.nnlnv loot publtc1tlon or 11 r1parud to th• State of t11t11 h1r
11v1r1nc1 tu purpo••••
Utp 1. r1lcul1t1 tht v1l9ht1d 1v1r1111 prtc1 for th• .onth for 11ch of thv thr•• llr11si
volumt P'lrch1111 far tit qu1rt1r tr- th• tax r1c:ord1.
llMth•Jpnu•ry 19§!
Purchn11 fro,. Ca!l!P•ny A
Lt••t 1 100,000 z.oo 200,1163
Unit 14 ao,ooo 1.51 120,eoo
?yrehnet frO!!I Cp•p•ny I
291,733
1110,1121
'·"
TOTAL Unftltd T1x11 360,tlZI C1lc:ul1t1 613,396
Tren••l••ton
Monthly V1l11ht1d Av1r1111 Price 61J,396/l60,t121 • S1.70/MKitu.
t1p11t procedure for r11111lnln11 two 11onth1 for thh purch111r ind for re1111tnlnt t110
purch111r1.
Step 2. C1lcul1t1 tht v1hht1d 1v1r1111 price of the thr11 t1r;est volu1111trlc purch111r1 for
th1 qu1rt1r using JllOnthly v1lun fro• lttp t.
Montb•J1ny1ry \9!! Month • Februuv 12aa Hon th ' March l?IU!
?mb.WL VolUM Prlca Extanslon Vo\\nlt Prlc:a Extant Ion Vol~t Price Extension
"' .S/HCf • "' S/HCF
• "' S/MCF
•
Unltad TIXll 360,1121 1.70 61J,J96 397, t:SO t.5a 627 ,465 :S20,J06 t.5a 506,0!:S
Traru11ls1lon
uruor:
South Gulf
Tot1l1
400,m
ill..222 Lil
t, 136,044
1.55 620,346
~
=
350,723
1,!l3,74Z 1 1 047 1 009
1.60
WI.
561, 157
lli.m
soo,126 1.55 775,195
:i.!!!...222•'~·'~''---''~"""''~···
1,673,255 I, 121,432 1,756,158
Sum of Volurau IUll of E11un1!on1
l,304,485 5,263,855 1.59
sup l. C1lcul1t1 wal;htad avar191 prlca U.td by Lat••• to calculatt roy1lty p1y11111nt1 on
111 d1ltv1rtd to L11111 or l1ftlht11 and not for rn1le.
Honth•Jaouary 1?!8 Month•February 191111 Hpntb•Mprch 1988
Voh.-1 Pr I ca Extension Voluma Price Extension Vol1o1111e Prlc1 Exunalon
"" S/llCf • "' S/HCf
• "' $/HCf
•
155,000 1.60 248,000 140,000 1.62 Z26,!00 155,000 t.5e 244,900
'II' gt vo1y..., Sypi 9t E11un1ton1 Velghsrd &ysrpgs rcie•
719,700 1.60
IUp 4, CIO'lplra 111l9httd 1v1ra91 price ctlculattd In Sup Z to tha walthtad 1var•t• \111a1
prlc1 c:1lc:ul1tad In •t•p J.
Sl.60/HCF 11 1n1t1r than S1,59/KCf ao no addltlon1l roy1lty p1y111ent1 1ra required
1or thh qVlrt1r,
VOIU1111 and prlcu u11d In thh u:1111pla tra ua1d for lllunrulon and 111y not b1
rtflactlvt of 1c:tu1l condltlona.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
'-{iL
This instrument was acknowledged before me on the q day of
January, 1988, by J. 0. WALKER, JR., General Partner of Vaquillas Ranch
Co., Ltd., A Texas Limited Partnership, on behalf of said partnership.
~ . µA,. *~o,,°}--
Notary Public in an or
The State of Texas.
My Co1T111ission Expires 7-3- o 1
Lt:1vR.A BA LLEvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
oY--L
This instrument was acknowledged before me on the I day of
January, 198B, by E. WALKER QUIROS, General Partner of Vaquillas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 9~day of
January, 1988, by GENES. WALKER, General Partner of Vaqu111as Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
oar): ub~in and for
The State of Texas.
My Corrrnission Expires
,_
7- 3- '1
oq
,l_,11012.A GA usvl
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the CJ~ day of
January, 1988, by EVAN B. QUIROS, General Partner of Vaquillas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
d.,j,a ~,J(1,,'}-
Notary Public in and for
The State of Texas.
My CDITllliss1on Expires '7-3-J"A LLEN
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
~
This instrument was acknowledged before me on the '=t day of
January, 1988, by E. WALKER QUIROS, Trustee for the Vaquillas Unproven
Mineral Trust.
~··~4~~
Notary Pu lie in and for
The State of Texas.
My Conmission Expires: 7-:3- ?9
.IJA vv 811 LLEvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
n'fL
This instrument was acknowledged before me on the -, day of
January, 1988, by GENE S. WALKER, Trustee of the Vaquillas Unproven Mineral
Trust.
~" 94~'" OOr,,t
~Pub le in and for
The State of Texas
My Commission Expires: '1-3- J'?
l.,,,11uR.A "£5,.,, LlsvJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the day of
January, 1988, by EVAN B. QUIROS, Trustee of Vaquillas Unproven Minera 1
Trust. ~ "
~Y
- ~ !! ), a, 4-11Q,"9-'
Public in and for
The State of Texas
My Commission Expires: '7-3-11'!
lc.u/(A 1J,.,, Lle:vJ
Printed/stamped name of Notary.
-13-
GWB2/dm 130(1)
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the CJ fl--, day of
January, 1988, by J. 0. WALKER, JR., Trustee of Vaquillas Proven Mineral
Trust.
NOtarY ic in and for
The State of Texas "
My Corranission Expires: 7-3- i?{
LAJ~A 12,,q l..LG vJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
y.LJ
the 9 day of
January, 1988, by E. Proven Mineral Trust.
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged the 9 ~ day of
January, 1988, by GENE S.WALKER, Trust Proven Mineral Trust.
otary ub 1c 1n an for
The State of Texas
My Commission Expires: 7- .3- 'g"f
L.4 J)/(A BA LL;;;vJ
Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
on the
This instrument was acknowledged before me 9 L
day of
January, 1988, by EVAN B. QUIROS, Trustee of Vaquil 1as Proven Mineral
Trust.
Notary Public in and for
The State of Texas
My Commission Expires: 7-3-:>!j
0AuRA S-4 LLev-1
Printed/stamped name of Notary.
-14-
GWB2/dm 130(1)
·.. ·..
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 'l-J-b day of
January, 1988, by l ci
c. • .So..el
er .
Attorney-in-Fact for CONO~ INC., ali aware corporation, on behalf of said
corporation.
NotlU~in?fk'~
The State of Texas
My Commission Expires: 9-!&'· f?g'
LJ e.fl«- !/la. r Ke. rt-
Printed/stamped name of Notary.
-15·
GWB2/dm 130(1)
·r...,,.... .
.,
•
•
J :
Oo oO • •- A
"i • itu1d11uu U (1 .. 0
;. iJ:I UD Acf• l'oollns Pro.-bi..11
•
OIL, GAS AND MINERAL LEASE
TBIS AGltEEKENT mat. lbb._!~ .. ------·l!&T of. Novemb~L--------·--···--··--·-···11~?._, b.t..._11
Vaguillas RancQSoml?fil}Y.t,_Ltd.; Vaguill~.Y.9.P.roven_Mingal Tn,ist i ...Y!9..'!!.+1.~!..9.Y.~D. _
_2!!!.l~ral_!~ust..;_l!f:.S.'!!!~nd thr.g.H.&h....!~f!....&.fil!.i:nLPJ!t..t.~ ....-h..-Q.,_B!J..lc.er. Jr~·-·---···­
-~. Wal~r_gu_!~.l!.i....£~~~!!s~L~M-~<'!!!-Jb.. ...Q.\!ill.~ - . ---·-···-·----···
;::·~:~ Oii• ~ inon>. • " - add ..... lu- ·- P..!.~O:B-~;1086:-~p Texa! 7B04Ji=~===-====-~
and __G..?.!!~~.£:..z.Y-~-~ox 219L__~o'!~!Q..l!.t._'.t~!!P_-1.1.£?_~-----·--·-·---·• r..-. WITNESS!:THi
- 1• t.NoJ- 111 ccmaw...,i.101> ot......!en Do l la r..§..!!E.!!. •.9.~-1!~_99_0_4....rul!LY.~.!..1.@bl t;:_~..QJ!§.!~.E~!!P.!L.--.-- ...»oll&r•
11.J: 0•00 )Jn b.nd paMt. of Lh• roJalU11 bu.In Pf'llYIW, •11d Of U.. &pMmuts ol I.Maw banln toat.IMd, berebr sraa.ta.
kuM u.4 J.tt.o u:clual"'1' viii,;'L.'.... tor tb• InUpoM of h1n•Ua1U11s, t:Xpl.orl111', pro.p1atl11s, drUlh•s U>d minlnl' for a11d Pf'Odud.ns oll, I'll 1.1\d
all otbar mir.1rals, C011d1Ktlns p;plora~n. noloslc and ctoph111c&I 111rYirJ'I b7 ~a»b, oora Ullo sn.'Pi&;J and 111asn.tlu• -".~:~~·
au, watu an.s ~sr t111lda. and air lnto aubnrl1q Hrat.. 1.,.1,... pfoe Un•, bulldf•s ~ 1 lmnita, ~ 1t1Llo11a, te 1. _ nM 111 - . - 1tn1oo
hlAI thtr91111 11111. 011, o\'tr •nd uzw1 Ind.I DWlllubllv h~ f.lld for
----°"'"'~· ------
ITATZ 07__
OOVNT?OJ':
__} T&XUJOlNT .lCKNOWLU>OlilEHT
Nt1tu7 hbllt la -4 tor____
""""'· -----·----
t
, II ~ ~
l
~ " ~ 0
~~
ol
l f ~ • ·f .]::: 0,
•!
1
l
( I ~ ~ i:
la
• I, ~ •
•
fF l
I l
~
k
'
l !
[
i' i
p,.
f.
'j
t
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~
;
t'
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•
J
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• •
ADDENDUM TO OIL AND GAS LEASE
From Vaquillas Ranch Co., Ltd. et al
To Conoco Inc., Dated November 1, 1987
12. Should Lessee be prevented from complying with covenants of this
lease by reason of conditions or acts set forth in Paragraph '11' hereof,
then Lessee agrees annually to pay to Lessor an amount equal to the delay
rentals herein provided for during such period of prevention, whether same
be during or subsequent to the primary term, and such payment shall be made
at the end of each year of prevention either to Lessor or to the depository
above named for credit to the account of Lessor.
13. This lease does not cover or include any right or privilege of
hunting or fishing on any part of the above described land, and Lessee
agrees with Lessor that neither he nor his assigns or agents or employees
of his assigns, will bring firearms or dogs upon the leased premises, and
should this provision against hunting and fishing be violated by any
agents, servants, employees or contractors of Lessee 1 s assigns, any such
•
person so violating same shall have no further right to enter upon the
leased prem1 ses, and such person sha 11 be regarded as and sha 11 be a
trespasser on the premises of Lessor and be subject to the penalties
imposed upon trespassers under the laws of the State of Texas.
14. It is expressly agreed and understood that after production of .,
oil and gas in corrmercial quantities is obtained from the leased premises, ~C'I
the minimum annual income to Lessor from payment of rentals, shut-in c)1)
royalty and royalty on production shall be sum of not less than Two_($2.00)
Dollars per acre on the total acreage retained and then covered by this
lease, but this provision shall not impair the right and privilege of
Lessee, his successors and assigns, to release and surrender any part of
the above described leased premises as herein provided. Lessee 1 hfs
successors and assigns, shall detennine within 90 days from the expiration
of any lease year during which royalties have been paid on actual
production the amount of any deficiency, and shall within said 90-day
period pay such deficiency to lessor or deposit same to Lessor's credit at
GW82/dm 124(7)
°"'I JUt 1 4 ~
.......
the depository hereinabove designated.
•
Default in the payment of such
deficiency shall not operate to terminate this lease or any part hereof,
but Lessee, his successors and assigns, agrees to personally pay such
deficiency to Lessor at Laredo in Webb County, Texas, together with any
reasonable cost, including attorney's fees, incurred by Lessor in
collecting such deficiency if not paid within the 90-day period hereinabove
provided for.
15. Nothwlthstanding any other provision herein contained, this oil,
gas and mineral lease is limited to oil, gas and sulphur and minerals
produced with oil and gas, and does not include minerals other than oil,
gas and sulphur and minerals produced with oil and gas, as Lessor herein
excludes from the leasehold estate herein granted, and reserves unto
himself, his heirs and assigns, all minerals other than oil, gas and
sulphur and mi nera 1s that may be produced with oil and gas, but it is
1
expressly agreed that gas 1 as used herein includes gas, condensate,
distillate or any other gaseous substance or any other mineral produced
with oil and gas, including sulphur.
16. The right to pool under Paragraph '4' of this oil, gas and
minera 1 lease sha 11 be 1imi ted to 1ease or 1eases on 1and belonging to
Lessor herein, or in which Lessor owns an interest in the oil, gas and
other minera 1s.
17. For the purposes of the annual rental payments due under
paragraph 5, Lessor and lessee agree that said payments have been timely
paid and received, and that this Lease is perpetuated, without the
necessity of further delay rental payments, until. the expiration of the
primary term.
18. At the end of the primary tenn hereof, Lessee covenants and
L D?
agrees to execute and deliver to Lessor a written release of any and all
portions of this lease which have not been drilled to a density of at least
40 acres for each producing oil well and 640 acres for each producing or
shut-in gas well, except that in case any rule adopted by the Railroad
Commission of Texas or other regulating authority for any field on this
GWB2/dm 124(7)
• •
lease provides for a spacing or proration establishing different units of
acreage per well, then such established different units shall be held under
~e~se by-su~h production, in lieu of the 40 and 640-acre units above
mentioned; provided, however, that if at such date lessee is engaged in
drilling or reworking operations the date for the execution and delivery of
such release shall be postp~n;d a~d the entire lease shall remain in force
so long as operations on said well or wells are prosecuted with reasonable
diligence, and if, after the completion or abandonment of any such well
~.):
Lessee commences the drilling of an additional well within Ninety (90) days
from the comPlet1on or abandonment of the preceding well, or continuously
conducts drilling operations in good faith and with reasonable diligence on
said lease without any .ces_s.atjon for longer than Ninety (90) days, said
lease shall remain in full force and effect during such drilling operations
and until the end of Ninety {90) days after the completion or abandonment
of the final well, at which time Lessee shall execute and deliver to Lessor
said written release, releasing all portions of the lease not then so
developed, Each retained unit shall contain at least one (1) well
producing or capable of producing oil or gas in paying quantities, and the
acreage within a unit shall be contiguous.
lf, after the date the partial release called for under this Paragraph 18
talces affect, all production from a retained unit around a well or wells
cease to produce oil or gas in commercial or in paying quantities, Lessee
shall have one hundred eighty (180) days thereafter within which to
commence operations to establish or re-establish production therein in
cormnercial or paying quantities, whether such production be from the same
wellbore or other wellbore. If such operations result in commercial
production, then this 1ease, as it applies to such unit sha 11 continue
until such corrmercial or paying production again ceases. However, if such
operations do not result in corrmercial production, then Lessee shall have
ninety ( 90) days after completion of such operations within which to
commence drilling ·-or reworking operations within such unit, and this lease,
as it applies to said unit, shall remain in force so long as operations on
said well or for drilling or reworking of any additional well therein are
prosecuted with no cessation of more than ninety {90} consecutive days, and
if they result in the production of 011 or gas therein, so long thereafter
GWB2/ dm 124 ( 7)
"· ...
•
as oil or gas is produced from said unit.
•
As to any unit upon which
cornnercial production may periodically terminate, the above right to timely
resume operations and continue this lease as to such unit shall be
reoccurring right.
The stipulation above as to the size of retained tracts around wells shall
never be construed as a satisfaction of Lessee's right, duty and obligation
to reasonably develop the leasehold held by Conoco or its successors or
assigns. After November I, 1990, Lessee agrees to dri 11 such add it i ona 1
we 11 s on the leased premises or such port i ans thereof as may be in force
and effect from time to time, as may be necessary to reasonable develop the
same for the production of oil and/or gas as a reasonable prudent operator.
19. A portion of paragraph 3 has been deleted and the following Is in lieu
thereof.
(b) on gas, including casinghead gas or other gaseous substances,
produced from said land, the Lessors royalty shall be calculated and
paid as follows:
a) Sales To Non-Affiliated Third Parties:
In the event Lessee enters into a gas sales contract with a
non-affiliated third party, Lessor's royalty shall be one-fifth
(1/5) of the gross proceeds received by Lessee from the sale of
such gas.
b) Sales To Related Or Affiliated Entities For Resale:
Jn the event Lessee enters into a gas sales contract to sell gas
to a related or affiliated entity, then Lessor s royalty shall be
1
computed on the greater of the following:
I. One-fifth (1/5) of the gross proceeds received by Lessee or
any affiliate or related entity from the sale of such gas to
the first non-affiliated entity, or
2. One-fifth (1/5) of the highest price reasonably obtainable
for gas by lessee and other producers or operators in the
-4-
GWB2/dm 124(7)
• •
east one-fourth of Webb County, Texas, who are producing gas
of like kind, quality and quantity.
11
In this regard, it is understood that the highest price
reasonably obtainable" may be equal to, but is not
necessarily, the highest price then being obtained by other
producers or operators in the east one-fourth of Webb
County, Texas, who are producing gas of like kind, quality
and quantity.
c) Taking, Selling Or Delivery Of Gas To Lessee Or Its Related Or
Affiliated Entities For Use (Not For Resale):
In the event Lessee takes gas for its own use, or sells or
transfers gas to a related or affiliated entity for use, then
Lessor's royalty shall be computed on the greater of the
following:
!. One-fifth (1/5) of the highest price reasonably obtainable
for gas by Lessee and other producers or operators in the
east one-fourth of Webb County, Texas, who are producing gas
of like kind, quality and quantity.
In this regard, it is understood that the "highest price
reasonably obtainable" may be equal to but is not
necessarily the highest price then being obtained by other
producers or operators in the east one-fourth of Webb
County, Texas, who are producing gas of like kind, quality
and quantity, or
2. One-fifth (1/5) of the quarterly weighted average of the
prices being paid by "purchasers" (as hereinafter defined)
in the east one-fourth of Webb County, Texas, who are
purchasing gas of like kind and quality. For the purposes
of calculating the average price under this Paragraph c2,
prices paid shall be those as reported in the Energy
Planning Book publication or as reported to the State of
-5-
GWB2/dm 124(7)
•
Texas for severence tax purposes.
the three largest purchasers
• "Purchasers 11 sha 11 mean
based on volume of gas
purchased for such calendar quarter, in the east one-fourth
of Webb County Texas.
1 For an example of the calculation of
the quarterly weighted average of such price, see Exhibit
Lessor and Lessee shall meet within eleven (11) months after the end
of each calander year. At least thirty (30) days prior to such meeting,
Lessee should furnish to Lessor a statement or other documentation of the
basis upon which royalties accrued to Lessor under the terms of the Lease
for the previous calender year. Any additional royalties calculated by
Lessee to be due, if any, shall be paid at such meeting. Within one (1)
year from delivery of the above referred to statement or other
documentation, Lessor shall notify Lessee of any discrepancies. Failure to
notify Lessee timely of any discrepancies shall constitute final acceptance
of royalty payments as covered by such statements or other documentation.
The first period for which Lessee shall prepare such statements or other
documentation shall begin on April 1, 1988 and end on December 31, 1988.
Nothing in this paragraph shall preclude Lessor from claiming any royalty
which Lessor is entitled to as a result of mistake in computation,
oversight in computation, or error in computation of royalty or which may
result from the subsequent disclosure of a discrepancy.
LESSOR'S royalty shall be without deduction for any costs, such as,
but not limited to, costs of producing, gathering, storing, separating,
treating, dehydrating, compressing, processing, transporting and otherwise
making the oil, gas and associated substances ready for sale or use, except
for a) severance and related taxes, and b) reasonable transportation
expenses which may be necessary to be paid to non-affiliated third parties
or entities to get Lessor's gas to a market or point of sale off the leased
premises and which sale or sales will result in a net price equal to or r' <.
I" I
higher than if said gas had been sold at the wellhead.
LESSEE may submit a copy of a proposed gas sales contract to Lessor
which is acceptable to Lessee and request that Lessor approve same for
-6-
GW82/dm 124(7)
". -
•
royalty computation purposes.
•
Lessor sha 11 have thirty (30) days after
receipt of a gas contract to approve same. If Lessor approves same or does
not timely decline to do so, then Lessor's royalty on gas sold under such
gas sales contract shall be based on the gross proceeds received under said
contract.
GAS contracts with a term in excess of three (3) years shall contain a
provision for price redetermination no later than the end of the 3rd year
and subsequent price redeterminations thereafter at intervals no greater
than two (2) years apart.
20. Lessee agrees to fill all slu~h pits and level the same when they
have ceased to be used and to restore the land to as near 1ts original
state as is practicable and to pay for damages to the surface of the land
and the improvements, water wells, growing crops and livestock thereon, and
to any other personal property of Lessor, Vaquillas Ranch Company, Ltd.,
occasioned by, arising out of, or resulting from operations by Lessee, his
agents, employees or independent contractors on the land hereby leased to
Lessee. Lessee also agrees, when requested in writing by Lessor. to
divulge to Lessor true and correct information as requested by Lessor as to
all drilling, producing and marketing operations conducted under this lease
and to furnish to Lessor copies of all electric well logs taken hereunder;
provided, however, lessee shall not be obligated to release such
information until it has been released to the industry.
21. Lessee hereby agrees to ensure that the two exit gates on F.M.
2895 (Forest Gate and Reynolds Gate) are guarded in an efficient and
prudent manner during drilling, reworking or plugging operations and at
other times as mutually agreed to by Lessee and Lessor. As to the exit
gate on the north side of U.S. Highway 59, Lessee agrees to use its best
efforts to work out an arrangement with other exploration companies using
such gate to ensure that it is guarded in an efficient and prudent manner
during drilling, reworking or plugging operations and other times as
mutually agreed to by Lessee and Lessor. Further, Lessee agrees to use its
best efforts to work out an arrangement with TransAmerican Natural Gas
Corporation or its successors or assigns to ensure that the exit gate
-7-
GWB2/dm 124(7)
• •
....
located 9 miles north of Aguilares, Texas, on F.M. 2895 is guarded in an
efficient and prudent manner during drilling, reworking or plugging
operations and at other times as mutually agreed to by Conoco and Lessor.
In regard to gates used by lessee and other exploration companies, Lessee
agrees to pay its share of the cost of guarding such gates when such gate
guards are required under this agreement. Lessee shall not be obligated to
furnish a gate guard on any gate which has been abandoned or is not being
used by Lessee.
22. Lessee agrees that before abandoning any well drilled on said ;j'., '0 ':)
lease for oil or gas purposes, it will notify the owner or the surface
estate in person or by telephone of its intention to do so, and it will
allow said owner of the surface estate a reasonable time, not exceeding
twenty-four (24) hours thereafter, within which to elect to take over the
hole for the purpose of attempting to make and complete a water well.
Lessee agrees to consult with such surface owner as to the location of a
potential water zone, without any liability or warranty for such
consultation. Upon the owner of the surface estate election, within the
specified time, to attempt to complete the well as a water well and
complying with all rules and regulations of the Railroad Co"'11ission of
Texas and applicable statutes, Lessee will, at its expense, set all plugs
to just below the designated water sand as may be required by the Railroad
Convnission and thereafter deliver the well to said owner of the surface
estate, leaving in such well all surface casing and such intennediate
casing as may have been run and set to at least the depth of the designated
water sand and thereafter the owner of the surface state shall own the well
and shall be responsible for all subsequent matters in connection with the
well and for compliance with the applicable statutes and regulations of all
regulatory agencies having jurisdiction. Lessee shall have no liability to
Lessor in connection with any of the operations which may be conducted by
the owner of the surface estate who shall thereafter bear all
responsibility and liability with respect thereto. It is expressly
understood that lessee shall not be required to furnish any additional
casing or other equipment for any well plugged back at the request of the
owner of the surface estate under this paragraph. Should the owner of the
surface estate elect not to attempt to make a producing water well out of
-8-
GWB2/dm 124(7)
....
•
any such hole, Lessee shall plug the well in accordance with all applicable
rules, regulations and statutes.
23. It is expressly agreed and understood that for the purposes of
this lease the following definitions shall apply:
11
Cormnences 11 - A well shall be deemed corranenced on the
date which the drilling bit enters the
earth for the drilling of a well.
11
Abandoned 11 - A well shall be deemed abandoned on the
day when it is finally plugged as a dry
hole.
11
Completed 11 - A well shall be deemed completed thirty
(30) days after the day the Lessee sets
production casing.
24. Lessor and Lessee agree to limit the conrnencement of actual Ao~
drilling during deer hunting season to 1) those wells drilled in areas
which would not disturb deer hunting, and 2) offset wells. If Lessee must
co1T1J1ence a well during deer hunting season to perpetuate said lease, then
Lessor will either a) not object to the drilling of such well during deer
hunting season orb) agree to extend the commencement date for such well to
a mutually agreeable date after deer hunting season ends. For the purposes
of this paragraph "deer hunting season" shall be that period defined by
State law.
25. Nothwithstanding anything contained herein to the contrary, the
lessor at any time and from time to time, upon not less than ninety {90)
days notice to the holder of this lease, may elect to require the payment
of any royalties accruing to such royalty owner under this lease to be made
in kind; provided that any expenses incident to the exercise of such
election shall be borne by Lessor· and such election shall be for periods of
not less than twelve (12) months. Lessor shall only be allowed to take in
kind when lessee is producing for his own account. In the event of such an
election by Lessor, lessee shall cooperate fully with Lessor in allowing
Lessor to take their royalty in kind, including permitting lessor to use
Lessee 1 s wellhead equipment and, to the extent that Lessee has assignable
rights, the use of Lessee's purchaser 1 s transportation facilities in good
faith and not to exceed preva i 1 i ng charges for s imi 1ar services in the
industry at the time if Lessee or its affiliates are transporting the gas,
-9-
GWB2/dm 124( 7)
•
.......
••
but if Lessee has a third party contract for the transport of said gas,
Lessor will be bound by said contract. Should Lessee desire to enter into
a gas purchase contract having a tenn of more than one (1) year, then (a)
Lessee shall include in such contract a provision that allows Lessor to
elect to take its gas in kind and be released from such contract one
hundred twenty (120) days after notice, or (b) Lessor may approve of such
contract in writing, 1n which event, Lessor may elect to take its gas in
kind either at the end of such gas contact or'one (1) year after notice to
Lessee, whichever happens sooner. Any equipment installed by Lessor
necessary to take in kind must be approved by Lessee and maintained
according to Lessee 1 s specifications.
If Lessee is unable to obtain a more favorable gas contract because of
Lessor's reservation of this election to take in kind, then Lessee may
elect to give notice of its intention to sign a gas contract acceptable to
Lessee and request that Lessor join in signing same, and if Lessor elects
to sign same, then Lessor's royalty share of revenue shall be bound by such
contract and Lessor may not elect to take its royalty in kind during the
term of such gas purchase contract.
DATED this 91Jr day of January, 1988.
VAQUILLAS RANCH COMPANY, LTD. VAQUILLAS UNPROVEN MINERAL TRUST
By: ;&.
E. Wa
By:
By:
-10-
GWB2/dm 124(7)
• •
......
VAQUILLAS PROVEN MINERAL TRUST CONOCO INC.
By~~4 rif1 By: -'l.fd:::;:f;fJ5a,.o
Ul...2.22
lotllt 1,136,044 1,IJJ,74Z 1,047,009 1,67J,ZS5 1, IZ1,4JZ 1,756,858
SU- of V!!IYIHI Su,. 2f [!ltt"'ton1 V1!9bt1d Av1c991 Prier
1oul• 5,Z6l,155 1,59
Sttp J, C1\c:11l1tt v1l9bttd 1v1r1111 pclc:t 1111d by Ltnt• to c1lc11l1u roy1lty p1y111nu on
1111 dtllvtrtd to Lt11u or 1ftlllnt1 tnd not for r11111,
t!opth•Jenyuy 1000 t!ontb•ltbrupy 12AA Montb•H11rcb 12AA
Volu.1 Prlc:• E:r.t1ntlon Yolu111 Prlc• h:t1n1ion Yolu.111 Price Extrn1lon
"" S/ltCl
• "" S/MC,
• "" $/lltl
1n,ooo 1.60 241,0DO 1'0,0DO \,62 U6,&00 155,000 1.sa 2U,900
he 2f vgtu.,,.. SUI! gf fxt1n1 Igo•
719,700 1.60
ll•P ' · Cffip•rt 111lthnd 1Y1r1111 prlct c1lcul1t1d In sup z to the vthht•d •v1r191 ~"'''
pcl;e ;1Lc:ul1od In :sup J,
S1.60/MCr 11 ' ' ' " ' ' Hllfl Sl.50/MCf 10 M 1ddltl2n.1l roy1tty P•Y••l\U lfl r1q.1.lr•d
for thh qu1rt1r,
llOUt Vol"'-"• UICI prlcu uud In thl1 1x19f!l• 1r1 u11d for l\\uttrnlon and ••Y not b1
r1H1nlvt of 1c:t111I c~hlona,
' ..
'
'
. THE STATE OF TEXAS
COUNTY OF WEBB
•
§
§
§
•
This instrument was acknowledged before me on the 9y.f-_,day of
January, 1988, by J. O. WALKER, JR., General Partner of Vaquillas Ranch
Co., Ltd., A Texas Limited Partnership, on behalf of said partnership,
i-- ~
.. ....';·.·
.· ·. ·- .......
._\.:. " ..•. -··
·· .........
~·~
otarY ~600•. s-
~le in and for
!~:~ .. ._ The State of Texas.
\ :
My Coomission Expires
.LA (J/?Jj BA LLi::v.J
7- B -'89
·• '"'·
~ .......
-~. ___ ..... Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 9'1+- day of
January, 1988, by E. WALKER QUIROS, General Partner of Vaqu1llas Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
• f •
~)i~aQ_Q,,[Y
:...~~"',·
• _:':!-. ..,.
otal'Yublic in and for
§ ~i The State of Texas.
My Co11111ission Expires '7-:3- o0 9
•, ~A-oJRA ~ LlEW
\. -~~·:--..... -· Printed/stamped name of Notary.
THE STATE OF TEXAS §
§
COUNTY OF WEBB §
This instrument was acknowledged before me on the 't'ff- day of
January, 1988, by GENES. WALKER, General Partner of Vaqui11as Ranch Co.,
Ltd., A Texas Limited Partnership, on behalf of said partnership.
~~~~,,;)--'
NOtarYUbfc in allor
The State of Texas.
My Co11111ission Expires 7-3-89
LAat.. Y'A-'ert"
Printed/Stamped name of Notary.
·15-
GWB2/dm 130(1)
:
I
I
'330158 I
MINERAL DEED
1
STATE OF TEXAS s . .
S KNOW ALL MEN BY THESE PR~SENTS1
COUNTIES OF STARR WEBB s .
AND ZAPATA
THAT VAQUILLAS RANCH CO., LTD., a Texas Limited Partnership,
for and in consideration of the sum of Ten Dollars ($10.00}) and
other qood and valuable consideration to it in hand paid by the
grantees hereinafter named, does hereby BARGAIN, SELL, TRANSFER,
ASSIGN and CONVEY unto the following, to-witi
J o. WALKER, JR. an und-ivided • r628 interestJ
$
JAMES n. WALKER an undivide4 .0853 interest1
NANCY J. WALKER BRICE an undivided .0853 interest1
EVAN B. QUIROS an undivided .0814 interest1
£, WALKER QUIROS an undivided ,0814 interest!
EVAN J, QUIROS an undivided .05686 interest;
SADIE DIANE GYURKO an undivided .05686 interest1
QUINLAN QUIROS SMITH-SAAB an undivided .05686 interest7
GENE s. WALKER an undivided .1628 interest;
GENE s. WALKER, JR. an undivided .042605 interestJ
Il
,...'.
JAMES PATRICK WALKER an undivided .042605 interest;
ELIZABETH WALKER an undivided .042605 interest1 and
KATHLEEN WALXER an undivided .042605 interest,
I
in and to all of·its right, title and interest in and to all of
the oil, gas and other minerals in and under the.following land&
100,403.93 acres of land, more or less, commonly known as the
VAQUILLAS RANCH, in Webb and Zapata Counties, Texas, said land
beinq fully described on Exhibit l which is attached hereto and
incorporated herein for all purposes and 102.35 acres of land in
Starr County, said land being fully described in Exhibit 2 which
is attached hereto and incorporated herein for all purposes.
TO HAVE AND TO HOLD the respective interest hereby conveyed
unto each of the said 9rantees, his or her heirs and assigns,
EXHIBIT
forever. This assignment shall be effective as of November 1,
1984 at 7100 A,M,
tl.
.J.t.:::.....
EXECUTED this day of December, 1984, B-4
_________
~ ~~~ VAQUILLAS ~·
~ '1::.i~
...
~
~ ~·= Bya•tf.A KE~, JR.,
- ~;i • O. W
.,., ....
- 33
~co
-., 11"'
General Pattner
·~ .!IC,_
.... ·-~ .
' "
Byt !7)
k4t.LQ~
~ /}
General Partn~
~· Byr €- UJ~ Jl 1btu2
, WALKER QUl S,
1
General Partner ~ .
&u,s:
I Byt 'U?lf_A-.)
GENE S • WALKER,
General Partner
The mailing address of each ot the grantees isi
J. o. Walker, Jr. Quinlin Quiros Smith-Saab ·
P.O. Box 342· 8308 Wi~ningham
Laredo, TX 78040 Houston~ TX 77055
James o. Walker Gene S, Walker
111 Inwood Road P.O. Box S
Laredo, TX 78041 Aguilares, TX 78369
Nancy J. Walker Brice Genes. Walker, Jr,
P.O. Box 716 P,O, Box 39
Hebbronville, TX 78361 Mirando City, TX 78369
Evan B. Quiros James Patrick Walker·
2102 Galveston P.O. Box 4
Laredo, TX 78040 Aguilares, TX 78369
E. Walker Quiros Eli~abeth Walker
2102 Galveston P.O. Box 5
Laredo, TX 78040 Aguilaree, TX 78369
Evan J. Quiros Kathleen Walker
2105 Galveston Street P.O. Box 5
Laredo, TX 78040 Aguilaree, TX 78369
Sadie Diane Gyurko
2105 Galveston
Laredo, TX 78040
STATE OF TEXAS S
COUNTY OF _.((,..J,_({_..8'-'fl..__ _ _ _ S
This instrument wa(Jaoknowledqed before me on
/21! Z>nrmb&r t
. ~ ••: . · 1: .
STATE OF "TEXAS S
COUNTY OF -:W=a.Jrlr=----- S
S'l'A'l'E OF TEXAS 5
COUNTY OF -"'ll.)~g/J=(r:.- ____ S
ary ~c n an or
State of Texas
/J.ar.fha U U:l/nrr-' My Commis!3ion Expires; ~.l- 03-Jlcf
STATE OF TEXAS s
couNTY OF Welde- s
,_-: ,J>Th).JJ instrument waa !cknowledged before J!le on
/ C\ . /)ece,m hev 19J ·
·
N~f~~and
the State of Texas
for
~-
- -- --...
,, Jl at /.Aa U UJ{orua.f
Printed Name of Notuy
My Commission Expireiu O[·O~ •,P>' (.0
·'
STATE OF TEXAS s ~
COUNTY OJI' _(l)_IAfr_fr____ S
N ry Public n and for
the State of Texas
... Q.·'S·) µor !Ao ~· U//lo.rnal
Printed Name oNotary
My Commiuion Expirea1 QS~oa-11
I
6
- - - - · - · - · - · ·· ·
S'l'ATE OF TEXAS S
COUNTY 01" --.1!..::P::.:e.::.:b:=.ib"------ S
r-y-J?u in an or
e State of Texas
I\'
Ua dfta 0 fJ.-!loumf
.,.·" C:·'S·)
·'!
7
------------"------------·---·-- - ----···· ..-·------·1
EXHIBIT 1
To Deed from J, o. Walker, Jr., et al.
to J. O. Walke'r , Jr., Evan B. Quiros
and Gene s. Walker, Trustees of the
Vaquillas Unproven Mineral Trust
l00,403.93 acres, more or less, known as
The Vaquillas Ranch,
and beinq comprised of the followin9 lands in
Webb and Zapata Counties, Texas1
SURVE~ t ABSTR ACRES CERT. NAME t
9
10
~168
477
640.00
646.67
H&GN
H&GN
I
11 53 640.00 HGNRR
12 400 640.00 P. BENAVIDES
14 447
525
647.15
640.00
HG&N
MR. PENA
t
16
18 2136 640.00 HG&N iI
24 2134 647 .,.40 CCSD-RGNG I
25 1042 640,"00 CCSD&RGNG
26 2133 .. 640,00 F.R. FEVILLE
N/2 31 1043 320.00 CCSD&RGNG
S/2 31 1043 320 .00 CCSD&RGNG
32 2682 640.00 C.R. DAVIS
33 1044 640.00 CCSO&RGNOR.R co
0
N/2
S/2
34
34
2186
2605
326.00
335.48
CCSO-RGNG
E.N, GASSER ...
.......
...
~
N/2 51 1045 320.00 CCSO-RGNG
S/2 51
52
1045
2606
320. 00 • CCSO-RGNG
640.00 E.N. GASSER
r-
0)
5.6.~ 1224 157 . 00 A. GARZA 0
57 1211 188.60 D. GAMBOA ~
..j
67 1834 319 . 71 G.A. TEAL ~
112 475 643.77 J,H, GIBSON
114 492 648 . 44 J,H. GIBSON
116 472 655.05 J.H. GIBSON
124 2180 643.84 BS&F
125 1'748 598.00 SK&K
125 84 42.00 SK&K
W/2 135 1774 320,00 T&NO
E/2 135 1774 320.00 T&NO
W/2 136 2322 320 , 00 J. JUAREZ
E/2 136 2322 320.00 J, JUAREZ
182 490 640,00 CC&FR CO.
E/S 197 563 8856,00 J.V , BORREGO
W/S 197 209 8856,00 J,V, BORREGO
W/V 197 563 320.00 J.V , BORREGO
E/V 197 563 160.00 J.v. BORREGO
v 197 563 5109.50 J.V . BORREGO
p 197 563 1132.00 J.V. BORREGO
p 197 563 722. 22 J.V, BORREGO
W/2 227 1133 320.00 CCSO,RGNG
E/2 227 1133 320.00 CCSD&RGNG -
W/2 228 2550 318.47 CCSO,RGNG
E/2 228 2550 318.48 CCSDUGNG
EXhibit l, Paqe l
--- - - . --- ----- .. .. -
·-··- -·-- · .. ·· -· ------ --- --··
.·. ::~?~??;~;~ .~
:.~:-~f:t;:r .
--•;•:·
:~ :'--- 232 2149 462.70 CCSD&RGNG
232 2148 *184.l* CCSD&RGNG
233 1117 *455.9* CCSD&RGNG
233 1117 *455,9* CCSD&RGNG
233 1117 455.90 CCSD&RGNG
259 1137 600.00 CCSD&RGNG
Bkll 259 1137 40.00 CCSD&RGNG
260 2607 640.00 CCSO&RGNG
264 3302 482.30 F.E. PROYOR
265 1142 618.80 CCSD&RGNG
266 2948 154,80 CCSD&RGNG
'W/2 266 2131 318.35 CCSD&RGNG
267 1134 553.60 CCSO&RGNG
267 1134 40,00 CCSD&RGNG
268 2132 605.49 CCSD&RGNG
W/2 273 1141 320 .00 CCSD& RGNG
E/2 273 1141 320 .00 CCSD&RGNG
274 2551 640 .00 CCSD&RGNG .r ·
W/2 275 1336 320.00 CCSD& RGNG
E/2 275 1336 3 20 .00 CCSD&RGNG
276 2552 640.23 GC&SC
277 1337 640.00 . CCSD&RGNG
NE 279 1353 160,00 GC&GF C7l
279'
SW
~
1353 463.65 GC&GF
307
309
474
1908
966.52
425.40
F.M. McKING
J.J. WRIGHT
....
335 1424 63,92 H&GN
:!
W/2 461
E/2 461
1286
1286
335.60 • GC&SF
335.60 GC&Sf'
r;
462
464
2104
1715
649.80
731.50
GC&SF
HE&WT
~...
C>
467 799 640.00 ASli.H ..
~
~
468 2255 659.14 GC&SF
469 1474 664.20 HE&WT
•;o 2612 663 .50 HE&WT
471 UBS 666,40 ELRR
472 2613 655.20 ELRR
475 972 622.40 C&M
-176 3132 650 . 95 S&M
542/2 3131 330.17 AB&M
575 910 648.17 BS&F
576 2473 639.55 RT
590 2599 573.40 GC&SF
593 1484 468. o·o HE&WT
593 1484 40.00 HE&WT
593 1484 107.56 HE&WT
594 2611 666.90 HE&l'IT
595 1189 642.10 ELRR ·
596 2610 650.70 ELRR
598 2598 649,30 CCSD&RGNG
603 970 663.50 C&M
604 2181 693.00 C&M
N/2 613 422 6 22.84 P . BENAVIDES
S/2 613 .422 667.24 MARTHA HALL
Exhibit l, Page 2
- - -- ··
I
--- --· ··--··- ... ·- --··- -·· -· - . .. -~ · -- -- -- · · · · ···
. :,; ::- ..~,·.·
. .. • • 1, • • •
~:.r.·;,:_:.-·..:.:,'·
-.. :~.,,,:
S/2 1666 2253 328.75 GC&SF
"'
-~,,...
1683 1115 640 . 00 CCSD&RGNG
E 1684 2910 160.00 CCSD&RGNG
w 1684 2910 400,00 CCSD&RGNG
N 1684 2698 80.00 CCSD&RGNG
1691 1267 640.00 GC&SF
1692 2419 613.04 GC&SF
1693 1269 640.00 CC&SF
1695 1268 640.00 GC&SF
1696 2418 640.00 GC&SF
1838 2187 67.00 P.H. SUTTON
1928 2474 430.27 'l'EX MEX
H/2 1953 1329 320.00 GC&SF
E/2 1953 1329 320 . 00 GC&SF
1955 1328 640.00 GC&SF
1956 2560 327.34 GC&SF
1987 1809 14 . 82 TEX MEX
1988 2475 8,.P5 TEX MEX
2057 985 652.'25 CCSD&RGNG
2058 2880 .. 652.25 CT&MC
W/2 2059 98 4 320.00 C&MRR
E/2 2059 984 320.00
2060 3'110 200.00
C&MRR
C&MCRR _.
-t
2060
2060
3329
2941
160.00
80 . 00
CT&MCRR
CT&MCRR
......
...
2060 3332 120.00 CT&MCRR ~
2060 3331 80.00 s. SYNDER r-...
2112 2420 672 .12 • B.A. JAMES O:>
2267 1888 53.30 A. WARD 0
2335 3025 27.30 w. BROWN ~
N/2 2336
Sf7~ 336
3167 14.00 w . BROWN <:;)
>
2342
3167 16.30 w. BROWN
3335 14.74 FROS'l' BANK
2367 3333 91.34 F.R. FEVILLE
52/53 P/80 *52,35• JO DeLaGARZA
TOTAL 100403.93
1
'
.!
Exhibit 1, Page 4
.· . :
:I
l
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---- -~·---- - -. 'i
I
I
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. " "'";"
J
EXHIBIT 2
DEED FROM J. O. WALKER, JR., ET AL
TO
J . O. WALKER, JR., EVAN B. QUIROS AND GENE S. WALKER,
1RUSTEES OF THE VAQUILLAS UNPROVEN MINERAL TRUST
102.35 Acres, more or leas, being comprised of the following
land in Starr County, Texas1
Share No. 52 out of ~orcion 7No . 80 aa allocated to
A~ L. Shawl by Decree of the Diatrict Court of Starr
County, Texas, in Cause No. 941, recorded in Volume G,
paq• 205, of t.he Deed Records of Starr County, Texas.
_________
B-6
I
EXHIBIT
MINERAL DEED
State of Texas §
§ Know All Men By These Presents:
Counties of Webb, Zapata and Starr §
That, the undersigned TRUSTEES OF THE v AQUILLAS UNPROVEN MINERALS TRUST' for and
in consideration of the sum of TEN AND No/100 DOLLARS ($10.00) and other good and valuable
consideration to the undersigned paid by the Grantee herein named, the receipt of which is hereby
acknowledged, have GRANTED, SOLD AND CONVEYED, and by these presents DO GRANT, SELL-AND
CONVEY unto vAQUILLAS UNPROVEN MINERALS, LTD.' a Texas limited partnership, all of the
following described real property in Webb, Zapata, and Starr Counties, Texas, to wit:
All of the right, title and interest owned by v AQUILLAS UNPROVEN MINERALS
TRUST in and to all of the oil, gas and other minerals in and under the following
land: 100,403.93 acres, more or less, commonly known as the Vaquillas Ranch in
Webb and Zapata Counties, Texas, said land being fully described on Exhibit A
which is attached hereto and incorporated herein for an purposes and 102.35 acres,
more or less, in Starr County, Texas, said land being fully described as Exhibit B
which is incorporated herein for all purposes.
This conveyance is made and accepted subject to all matters, conditions, restrictions, and
reservations, if any, relating-to the above described property which are recorded or apparent on
said property, but only to the extent that the same are still in force and effect.
To HAVE AND To HOLD the above described mineral interests, together with all and
singular the rights and appurtenances thereto in anywise belonging unto the said Grantee, its
successors and as~igns forever; and Granters do hereby bind themselves, their successors and
assigns to WARRANT AND FOREVER DEFEND, all and singular, the said premises unto the said
Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to
claim the same or any part thereof.
EXECUTED to be effective the 31st day of December, 1996.
V AQUJLLAS UNPROVEN MINERALS TRUST
By: ~£~
Gene S. Walker, Trustee
By:
u • on tcu
&YUH, P/ITI'-SON 8 AYCOC:l
A RQUS.$1~\. COl.POIAllON
112 lASt ttCAH !TlkUt SIJIU U00
\.\N ANTONIO. nSAl 78'1Cle
.... .. -
By:
Grantees' Address:
Vaquillas Unproven Minerals, Ltd.
5810 San Bernardo Avenue, Suite 490
Laredo, Tuxas 78041
STATBOFTEXAS §
§
COUNTY OF WEBB, ZAPAT~ AND STARR §
THIS INSTRUMENT WAS ACKNOWLEDGED before me on the J:!!!..
by GENE S. WAl.KER, 1hlstee of the Vaquillas Unproven Minerals Trust.
day of January, 1997'
Printed or Stamped Name of Notary,
with Date of Commission Expiration
-2-
STATE OF TEXAS §
§
COUNTY OF WEBB, ZAPATA AND STARR §
THIS INSTRUMENT WAS ACKNOWLEDGED before me on the 1111
day of January, 1997,
by JAMES D. WALKER, Trustee of the Vaquillas Unproven Minerals Trust.
Printed or Stamped Name of Notary,
with Date of Commission Expiration
STATE OF TEXAS §
§
COUNTY OF WEBB, ZAPATA-AND STARR §
THIS INSTRUMENT WAS ACKNOWLEDGED before me on the ;111i day of January; 1997,
by EVAN I. QUIROS 1 Trustee of the Vaquillas Unproven Minerals Trust.
Printed or Stamped Name of Notary,
with Date of Commission Expiration
-3-
100,403.93 acres, more or less, known as
The Vaquillas Ranch, ,
and being comprised of the following lands in
Webb and Zapata Counties, Texas:
SURVEY i ABS TR ACRES CERT. NAME
9 3168 640.00 H&GN
10 477 646.67 H&GN
11 53 640.00 HGNRR
12 400 640.00 P. BENAVIDES
14 447 647.15 HG&N
16 525 640.00 MR. PENA
18 2136 640.00 HG&N
24 2134 647.40 CCSD-RGNG
25 1042 640.00 CCSD&RGNG
26 ·2133 640.00 F.R. FEVILLE
N/2 31 1043 320.00 CCSD&RGNG
S/2 31 1043 320.00 CCSD&RGNG
32 2682 640.00 C.R. DAVIS
33 1044 640.00 CCSD&RGNORR ~
N/2 34 2186 326.00 CCSD-RGNG -2
S/2 34 2605 335.48 E.N. GASSER ~
N/2 51 1045 320.00 CCSD-RGNG
S/2 51 1045 320.00 · CCSD-RGNG
52 2606 640.00 E.N. GASSER -2
56 1224 157.00 A. GARZA .......
~
57 1211 188.60 D. GAMBOA
67 1834 319.71 G.A. TEAL
112 475 643.77 J.H. GIBSON
114 492 648.44 J.H. GIBSON
116 472 655.05 J.H. GIBSON
124 2180 643.84 BS&F
/
125 1749 598.00 SK&K
125 84 42.00 SK&K
W/2 135 1774 320.00 T&NO
E/2 135 1774 320.00 T&NO
W/2 136 2322 320.00 J. JUAREZ
E/2 136 2322 320.00 J. JUAREZ
182 490 640.0.0 CC&FR CO.
E/S 197 563 8856.00 J. V. BORREGO
W/S 197 209 8856.00 J.V. BORREGO
W/V 197 563 320.00 J.V. BORREGO
E/V 197 563 160.00 J.V. BORREGO
v 197 563 5109.50 J.V. BORREGO
p 197 563 1132. 00 J.V. BORREGO
p 197 563 722.22 J.V. BORREGO
W/2 227 1133 320.00 CCSO&RGNG
E/2 227 1133 320.00 CCSD&RGNG
W/2 228 2550 318.47 CCSD&RGNG
E/2 228 2550 318.48 CCSD&RGNG
Exhibit "A"
Page 1of4
232 2148 462.7'o CCSD&RGNG
232 2148 *184.l* CCSD&RGNG
233 1117 *455.9* CCSD&RGNG
233 1117 *455.9* CCSD&RGNG
233 1117 455.90 CCSD&RGNG
259 1137 600.00 CCSD&RGNG
Bkll 259 1137 40.00 CCSD&RGNG
260 2607 640.00 CCSD&RGNG
264 3302 482.30 F.E. PROYOR
265 1142 618.80 CCSD&RGNG
266 2948 154.80 CCSD&RGNG
W/2 266
267
2131 318.35 CCSD&RGNG I
267
1134
1134
553.60
40.00
CCSD&RGNG
CCSD&RGNG
l
268
W/2 273
2132
1141
605.49
320.00
CCSD&RGNG
CCSD&RGNG I
E/2 273
274
1141
2551
320 . 00
640.00
CCSD&RGNG
CCSD&RGNG
l
W/2 275
E./2 275
1336
1336
320.00
320.00
CCSD&RGNG
CCSD&RGNG
I
276 2552 640 . 23 GC&SC
277 1337 640.00 CCSD&RGNG
NE 279 1353 160.00 GC&GF
SW 279 1353 463.65 GC&GF ~
307 474 966.52 F.M. McKING -.l
309 1908 425.40 J.J. WRIGHT ~
335 1424 63.92 H&GN
W/2 461 1286 335.60 • GC&SF
E/2 461 1286 335.60 GC&SF -.1
462 2104 649.80 GC&SF r-
464 1715 731.50 HE&WT t.11
467 799 640.00 AB&N
468 2 2 55 659.14 GC&SF
469 1474 664.20 HE&WT
470 2612 663.50 HE&WT
471 1188 666.40 ELRR
472 2613 655.20 ELRR
475 9 72 6 2 2.40 C&M
476 3132 650.95 S&M
542/2 3131 330.17 AB&M
575 910 648.17 BS&F
5 76 2473 639.55 RT
590 2599 573.40 GC&SF
59 3 1484 4 68. o·o HE&WT
593 1484 40.00 HE&WT
593 1484 107.56 HE&WT
594 2611 666.90 HE&WT
5 95 1189 642.10 ELRR
596 2610 650.70 ELRR
598 2598
II
649.30 CCSD&RGNG
603 97 0 663.50 C&M
604 2181 693.00 C&M
N/2 613 42 2 622.84 P. BENAVIDES
S/2 613 422 667.24 MARTHA HA~L
; !
Exhibit "A"
Page2of4
I
!
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I
I
I
733 1276 639.~0 GC&SF
I
I
N/2 734 1276 348.00 GC&SF I
S/2 734
735
2901
1322
352.00
238.60
GC&SF
GC&SF
. I
736 2233 642.00 GC&SF
744 2595 639.84 GC&SFR CO. I
770
770
1959
1959
893.40
320.00
T.F. PICKETT
T.F. PICKETT
I
781 1361 211. 50 GS&SF I
782
865
2997
1438
209.30
640.00
R. PENA
H&GN I
W/2
E/2
987
987
2061
2061
320 .00
320.00
J. POITEVENT
J. PO!TEVENT
I
W/2
E/2
988
988
2593
2593
318.50 J. POITEVENT I
318.50 .J. POITEVENT
1004 2421 634.58 P.B. REYNOLDS
1011 1846 640.00 CCSD&RGNG
1012 2489 *40.00* S.V. VELA
1012 2489 640.00 S.V. VELA
1113 1407 79.99 E.H.
1172 1405 160.00 B. HERRERA
1184 1673 160.00 R. ROYAL
1194 3·207 682.30 GC&SF
W/2 1627 1324 320.00 GC&SF ~
W/E 1627 1324 160.00 GC&SF -.:!
E/E 1627 1324 160.00 GC&SF >---
W/2 1629 1275 306.32 GC&SF
E/ '2 1629 1275 306.33 · GC&SF
1630 2254 621.00 GC&SF -.:!
W/2 1631 1317 320.00 GC&SF ~
~2 1631 1317 320.00 O':>
GC&SF
1632 2140 92.00 GC&SF
1633 1323 640.00 GC&SF
1634 2252 640.00 GC&SF
1635 1797 548.00 TCRR
1643 1162 104.79 JOSEFA CUELLAR
1635 1797 *92.00* TCRR
N/2 1645 1111 320.00 CCSD&RGNG
S/2 1645 1111 320.00 CCSO&RGNG
1646 2396 640.00 CCSD&RGt-:G
W/2 1647 1101 320.00 CCSD&RGNG
E/2 1647 1101 320.00 CCSD&RGNG
W/2 1648 3301 325.75 DA&FA
E/2 1648 3301 325 .75 CCSD&RGNG
1649 1110 640.00 CCSD&RGNG
1650 2444 609 . 95 C.M . SAMY ER
1651 1112 640.00 CCSD&RGNG
1652 2876 640.00 W.H. TAYLOR
W/2
1661
1662
1122
2230
640.00
329 .31
CCSD&RGNG
R.E. PARR
!
~l
E/2 1662 3094 320.00 A.F. CARROLL !
1663 1123 640.00 CCSD&RGNG ~
1665 1124 640.00 CCSD&RGNG
N/2 1666 3142 328.79 CCSD&RGNG
Exhibit "A" t
Page 3 of 4
I
t
S/2 1666 2253 328.75 GC&SF
1683 1115 640.00 CCSD&RGNG
E 1684 2910 160.00 CCSD&RGNG
w 1684 2910 400.00 CCSD&RGNG
N 1684 2698 80.00 CCSD&RGNG
1691 1267 640.00 GC&SF
1692 2419 613.04 GC&SF
1693 1269 640.00 CC&SF
1695 1268 640.00 GC&SF
1696 2418 640.00 GC&SF
1838 2187 67.00 P.H. SUTTON
1928 2474 430.27 TEX MEX
W/2 1953 1329 320.00 GC&SF
E/2 1953 1329 320.00 GC&SF
1955 1328 640.00 GC&SF
1956 2560 327.34 GC&SF
1987 1809 14.82 TEX MEX
1988 2475 8.05 TEX MEX
2057 985 652.25 CCSD&RGNG
2058 2880 652.25 CT&MC
W/2 2059 984 320.00 C&MRR
E/2 2059 984 320.00 C&MRR
2060 3210 200.00 C&MCRR ~
2060 3329 160.00 CT&MCRR -.:z
2060 2941 80.00 CT&MCRR ~
2060 3332 120.00 CT&MCRR
2060 3331 80.00 S. SYNDER
2112 2420 672.12 • B .A. JAMES -.:z
~
2267 1888 53.30 A. WARD -:i
2335 3025 27.30 W. BROWN
""tr/2 2336 3167 14.00 W. BROWN
S/2 2336 3167 16.30 W. BROWN
2342 3335 14.74 FROST BANK
2367 3333 91. 34 F.R. FEV!LLE
52/53 P/80 *52.35* JO DeLaGARZA
TOTAL 100403.93
Exhibit "A"
Page 4 of 4
102.35 Acres, more or less, being comprised of the following
land in Starr County, Texas:
Share No. 52 out of Porcion No. 80 as allocated to
A. L. Shawl by Decree of the District Court of Starr
County, Texas, in Cause No. 941, recorded in Volume G,
page 205, of the Deed Records of Starr County, Texas.
:_ .. \
I
<:'
Exhibit "B"
Page 1of1
Tab 4
VAQUlLLAS UNPROVEN MINERALS, §
LTD, §
Plaintiff, §
§
v. § WEBB COUNTY, TE
~t-DlClAL DIS
§
CONOCOPHILLIPS COMP ANY, §
Defendant
PLAINTIFF'S ORCGINAL PETITION
TO THE HONORABLE JUDGE OF SAID COURT:
Vaquillas Unproven Minerals, Ltd. ("Vaquillas"), Plaintiff, complains of
ConocoPhillips Company ("Conoco"), Defendant, and respectfully shows:
I.
DISCOVERY CONTROL PLAN
l. Plaintiff affirmatively pleads that discovery should be conducted in
accordance with Texas Rule of Civil Procedure 190.4 (Level 3).
II.
PARTIES
2. PlaintiffVaquillas is a Texas Limited Partnership with its principal place of
business in Laredo, Webb County, Texas.
3. Defendant Conoco is a Delaware Corporation with its principal place of
business in Houston, Texas. It may be served through its registered agent: United States
Corporation Company, 211 E. 7th Street, Suite 620, Austin, Texas 78701-3218. Service
of process is requested at this time.
PLAINTIFF'S ORIGINAL PETJ1'10N Page I
III.
JURISDICTION AND VENUE
4. The District Courts of the Stale of Texas have jurisdiction over these claims
and these parties. Conoco's principal offices are in Houston, Texas, and its Texas oil and
gas operations are the subject of this cause.
5. This suit involves a dispute over two oil and gas leases which relate to real
property in Webb County, Texas. Venue is therefore proper (and mandatory) in Webb
County, Texas, under Sections 15.002(a) (1) and 15.011 of the Texas Civil Practice &
Remedies Code.
IV.
RELIEF SOUGHT
6. Vaquillas seeks a release of acreage previously the subject of an oil and gas
lease, specific performance, and monetary relief over $1,000,000.
v.
FACTS
7. Conoco has violated a covenant and agreement between the parties by
refusing to execute and deliver to Vaquillas a written release of the portions of certain
leased property that reverted to Vaquillas as a matter of law.
8. The following properties (the "Subject Property") are the subject of this
lawsuit:
26,622.79 acres of land, more or less, situated in Webb County, Texas more
fully described in the Oil, Gas and Mineral Lease dated June 15, 1974 (as
amended) between Vaquillas Ranch Company, Ltd. et al., as Lessor, and
Conoco Inc., as Lessee, a copy of which is recorded in Volume 460, Pages
PLAINTIFF'S ORIGINAL PETITION Page2
324-330 of the Webb County Deed Records (hereinafter the "26,622.79
acre lease"); and
6,740 acres of land, more or less, situated in Webb County, Texas more
fully described in the Oil, Gas and Mineral Lease, dated effective
November I, 1987, and entered into by and between Vaquillas Ranch
Company, Ltd., Vaquillas Unproven Mineral Trust, and Vaquillas Proven
Mineral Trust, as Lessor, and Conoco Inc., as Lessee, a Memorandum of
which is recorded in Volume 1303, Pages 886 et seq. of the Webb County
Real Property Records (hereinafter the "6, 740 acre lease").
9. Plaintiff Vaqui!las is successor-in-interest to the Lessor(s) with respect to
both oil and gas leases described above. Defendant Conoco is the successor-in-interest to
the Lessee(s) with respect to both oil and gas leases described above.
10. Both leases described in Paragraph 8 above have been amended and
supplemented a number of times. On or about November 1, 1987, both the 26,622.79
acre lease and the 6, 740 acre lease were amended to include a Paragraph 18, which
allows Conoco to postpone execution and delivery to Lessor of a written release of the
portions of the lease not drilled to the required density by engaging in a continuous
drilling program. In order to be engaged in a continuous drilling program, Conoco must
commence the drilling of a new well within 90 days after the completion of each well.
At the end of the continuous drilling program (i.e. when Conoco ceases to commence the
drilling of new wells within the 90 day period(s)), Conoco is allowed to maintain its
leases of the Subject Property onlv as to an amount of acreage surrounding each well it
drilled. Both leases require Conoco to execute and deliver to Vaquillas a written release
of any acreage not earned by drilling operations.
PLAIN71FF'S ORIGINAL PETITION Page 3 ,
l l. Under Paragraph 18 of both oil and gas leases, un-earned acreage reverted
to Vaquillas 90 days after Conoco ceased drilling wells under the continuous drilling
clause. In this case, that date occurred no later than June 3 0, 2012 ("Release Date").
111is is the date ninety days after Conoco's Vaquillas Ranch A-7 No. 249 Well was
completed. On information and belief, Conoco's Vaquillas Ranch A-7 No. 249 Well was
the last well it drilled on the Subject Property.
12. Conoco takes the position that it is not obligated to release any acreage
back to Vaquillas, as it claims to have earned 40 acres per oil well and 640 acres per gas
well. Conoco's position is not correct as to gas wells because it disregards an important
provision of both leases.
13. Paragraph 18 of both leases controls how much acreage surrounding each
well Conoco is allowed to retain. Paragraph 18 states that if the Railroad Commission of
Texas adopts a rule for the field that provides for a spacing establishing units of acreage
per well different than 40 acres for oil wells or 640 acres for gas wells, Conoco may
retain only the acreage provided by the units established by virtue of the spacing provided
by the Commission's rule:
... Lessee covenants and agrees to execute and deliver to Lessor a written
release of any and al I portions of this lease which have not been drilled to a
density of at least 40 acres for each producing oil well and 640 acres for
each producing or shut-in gas well, except that in case any rule adopted by
the Railroad Commission of Texas or other regulating authority for any
field on this lease provides for a spacing or proration establishing different
units of acreage per well, then such established different units shall be held
under this lease by such production, in lieu of the 40 and 640-acre units
above mentioned. (Emphasis supplied).
PLAINTIFF'S ORIGINAL PETITION Page4
14. After the November I, 1987 alllendment to the two leases, the Railroad
Commission did adopt a rule for the Vaquillas Ranch (Lobo Cons.) Field that provided
for spacing that established 40 acre units of acreage for each gas well rather than 640
acres. Therefore, Conoco is not allowed to retain more than 40 acres for each of the gas
wells it drilled on the Subject Property. The acreage to be released will hereafter be
referred to as the "Reverted Minerals."
15. Without waiver of its right to do so at a later time and 1·etaining all of its
rights under the two leases in question, Vaquillas does not challenge by this cause
Conoco's rights or interest in the weils it drilled on the Subject Property and producing in
paying quantities at the Release Date.
VI.
CAUSES OF ACTION
16. The foregoing Paragraphs 1 to 15, which are incorporated by reference
herein as ifrecited verbatim, support the following causes of action and claims:
17. Breach of Contract: At the Release Date, the Reverted Minerals
automatically reverted to Vaquillas. Conoco was required to provide Vaquillas with a
fully executed and recordable release of Reverted Minerals under the 26,622. 79 acre
lease and the 6, 740 acre lease, but Conoco has failed and refused to provide Vaquillas
with this formal release. Vaquillas has suffered direct and foreseeable indirect or
consequential damages from these breaches of contract in excess of the minimum
jurisdictional amount.
PLAINTIFF'S ORIGINAL PETITION Page 5
l 8. Specific Performance: Conoco has failed to provide Vaquillas with a
formal release of acreage as provided for in the leases. Conoco should be ordered to
specifically perform this obligation to provide to Vaquillas such release of the Reverted
Minerals.
19. Alternatively, Removal of Cloud and Action to Quiet Title: As is set
out above, the 26,622.79 acre lease and the 6,740 acre lease terminated as of the Release
Date as to the Reverted Minerals. Vaquillas would show that after making the oil and gas
leases of the Subject Property it was the owner of the reversionary interest in the mineral
estate in the Subject Property. On the Release Date, the mineral interest in the Reve1ied
Minerals reverted to Vaquillas. By Conoco's refusal to provide the required written
release of the Reve11ed Minerals, the two oil and gas leases constitute a cloud on
Vaquillas' title to the Reverted Minerals, forcing Vaquillas to seek judicial confirmation
of Vaquillas' interest in the Reverted Minerals and judgment quieting title to the
Reverting Minerals in Vaquillas.
20. Attorneys' Fees: As set out above, Conoco has breached (and continues to
breach) its obligation under the 26,622.79 acre lease and the 6,740 acre lease to execute
and deliver to Vaquillas a written release of all portions of the Subject Property it did not
earn through continuous drilling. Vaquillas' claims have been presented to Conoco and
Conoco has failed to release the acreage in question within 30 days after presentment.
Accordingly, Vaquillas is entitled to its reasonable and necessary attorneys' fees with
respect to this action. TEX. CJV. PRAC. & REM. CODE §38.001.
PLAINTIFF'S OIUGINAL PETITION Page6
21. Conditions Precedent: All conditions precedent to the bringing of these
claims has been performed or has occurred.
VII.
REQUEST FOR DISCLOSURES
22. Pursuant to Texas Rule of Civil Procedure 194, Plaintiff request that
Defendant disclose within 50 days of the service of this request the information and
material required by Rule 194.2.
PRAYER
23. For these reasons, Plaintiff Vaquillas Unproven Minerals, Ltd. asks for
judgment against Defendant ConocoPhillips Company for the following:
L judgment ordering Conoco to execute a written release of the
Reverted Minerals;
JJ. damages, both direct and indirect or consequential in excess of the
minimum jurisdictional amount;
iii. judgment that the oil and gas leases in question have terminated as to
all acreage described in such leases except 40 acres around the
well bore of each gas well drilled by Conoco;
iv. reasonable and necessary attorneys' fees;
v. prejudgment interest as provided by law;
vi. post-judgment interest as provided by law;
vii. costs of suit; and
viil. all other relief to which Plain ti ff deems itself entitled.
PLAINTIFF'S ORIGINAL PETITION Page 7
HAYS & OVlENS L.L.P.
Gregg Owens, SBN 15383500
gregg.mvens@haysowens.com
Robe11 G. Hargrove, SBN 24032391
rob.hargrove@haysowens.com
807 Brazos Street, Suite 500
Austin, Texas 7870 I
(512) 472-3993
(512) 472-3883 Facsimile
Raul Leal Incorporated
Attn: Raul Leal, SBN 24032657
rleal@rl-lawfirm.com
5810 San Bernardo, Suite 390
Laredo, Texas 7804 I
(956) 727-0039 - Phone
(956) 727-0369 -Fax
Michael Jung, SBN 11054600
Strasburger & Price, LLP
90 l Main Street, Suite 4400
Dallas, TX 75202-3794
(214) 651-4724-Phone
(214) 651 4330 fax
ATTORNEYS FOR VAQUILLAS
UNPROVEN MINERALS, LTD.
PLAINTIFF'S ORJGINAL PETITION Page8