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authority simliarjf thte.F4 'its with respect to such other land, lease or leases. Likewl; eviousiy formed to Include formations not producing oil o Q reformed to exclude
such non-prockf The forming or reforming of any unit shall be noon executing and filing of record a declaration of suc or reformation, which
declarationshar wsc,e unit. Any unit may Include land upon which a well has iterecorJte been completed or upon which drilling operations havb uetmi cuaimenced. Production,
drilling or reworking operations or a well shut-in for any reason anywhere on a unit which includes all or a part of thls lease shall be treated as if it were production, drilling or reworking
operations or a well shut -in under this lease. In lieu of the royalties elsewhere herein specified, lessor shall receive on production from the unit so pooled royalties only on the portion of
such production allocated to this lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease and included in the unit
bears to the total number of surface acres in such unit. c j _4
11. Lessee shall have the right to unitize, pool, or combine all or any part of the land described above as to one or more of the formations ther under with other lands In the same
general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change
or terminate any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed modified to conform to the terms, conditions, and
provisions of such approved cooperative or unit plan of development or operation and particularly, all drilling and development requirements of this lease, express or implied, shall be
satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement.
In the event that the land described above or any part thereof shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production
therefrom is allocated to different portions of the and covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to
be paid hereunder to lessor, be regarded as having been produced from the particular tract of land to which its allocated and not to any other tract of land; and the royalty payments to
be made hereunder to lessor shall be based upon production only as so allocated.
12. If the estate of either party hereto is assigned or sublet, and the privilege of assigning or subletting in whole or in part is expressly allowed, the express and implied covenants
hereof shall extend to the sublessees, successors and assigns of the parties; and in the event of an assignment or subletting by lessee, lessee shall be relieved and discharged as to the
leasehold rights so assigned or sublet from any liability to lessor thereafter accruing upon any of the covenants or conditions of this lease, either express or implied. No change in
ownership of the land, royalties, or other payments, however accomplished, shall operate to enlarge the obligations or diminish the rights of lessee or require separate measuring or
installation of separate tanks by lessee. Notwithstanding any actual or constructive knowledge of or notice to lessee, no change in ownership of said land or of the right to deceive royalties
or other payments hereunder, or of any interest therein, whether by reason of death, conveyance or any other matter, shall be binding on lessee (except at lessee's option in any
particular case) until one hundred twenty (120) days after lessee has been furnished written notice thereof, and the supporting information hereinafter referred to, by the party claiming as
a result of such change in ownership or interest. Such notice shall be supported by original and certified copies of all documents and other instruments or proceedings necessary in
lessee's opinion to establish the ownership of the claiming party.
13. In the Interest of conservation, the protection of reservoir pressures and recovery of the greatest ultimate yield of oil and /or gas, lessee shall have the right to combine the
leased premises with other premises in the same general area for the purpose of operating and maintaining repressuring and recycling facilities, and for such purpose may locate such
facilities, Including Input wells, upon leased premises, and no royalties shall be payable hereunder upon any gas used for repressuring and recycling operations benefiting the leased
premises.
14.1f lessor, during the primary term of thls lease, receives a bona fide offer from a third party to purchase from lessor a lease covering any or all of the substances covered by this
lease and covering all or a portion of the land described herein, with such lease to become effective upon expiration of this lease, which lessor is willing to accept from the offering party,
lessor hereby agrees to notify lessee in writing of said offer immediately, Including In the notice the name and address of the offeror, the price offered and all other pertinent terms and
conditions of the offer. Lessee, for a period of fifteen (15) days after the receipt of the notice, shall have the prior and preferred right and option to purchase the lease or part thereof or
Interest therein covered by the offer at the price and on the terms and conditions specified in the offer. All offers made up to and Including the last day of the primary term of this tease
shall be subject to the terms and conditions of this paragraph 14. Should lessee elect to purchase the lease pursuant to the terms hereof, it shall so notify lessor in writing by mail, telefax,
or telegram prior to expiration of said fifteen (15) day period. Lessee shall promptly thereafter furnish to lessor the new lease for execution by lessor along with lessee's sight draft payable
to lessor in payment of the specified amount as consideration for the new lease, such draft being subject to approval of title according to the terms thereof. Upon receipt thereof, lessor
shall promptly execute said lease and return same along with the draft through lessor's bank of record for payment.
15: In the event lessor considers that lessee has not complied with all Its obligations hereunder, either express or implied, lessor shall notify lessee in writing, setting out specifically
in what respects lessee has breached this lease. Lessee shall then have sixty (60) days after receipt of said notice within which to meet or commence to meet all or any part of the
breaches alleged by lessor. The service of said notice shall be precedent to the bringing of any action by lessor on said lease for any cause, and no such action shall be brought until the
lapse of sixty (60) days after service of such notice on lessee. Neither the service of said notice nor the doing of any acts by lessee aimed to meet all or any of the alleged breaches shall
be deemed an admission or presumption that lessee has failed to perform all its obligations hereunder. This lease shall never be forfeited or cancelled for failure to perform in whole or In
part any of its implied covenants, conditions, or stipulations until a judicial determination Is made that such failure exists and lessee fails within a reasonable time to satisfyany such
covenants, conditions, or stipulations.
16. All express and implied covenants of this lease shall be subject to all federal and state, county or municipal laws, executive orders, rules and regulations, and lessee's
obligations and covenants hereunder, whether express or implied, shall be suspended at the time or from time to time as compliance with such obligations and covenants is prevented or
hindered by or is in conflict with federal, state, county, or municipal laws, rules, regulations or executive orders asserted as official by or under public authority claiming jurisdiction, or Act
of God, adverse field, weather, or market conditions, inability to obtain materials In the open market or transportation thereof, wars, strikes, lockouts, riots, or other conditions or
circumstances not wholly controlled by lessee, and this lease shall not be terminated in whole or in part, nor lessee held liable in damages for failure to comply with any such obligations
or covenants it compliance therewith is prevented or hindered by or Is in conflict with any of the foregoing eventualities. The time during which lessee shall be prevented from conducting
drilling or reworking operations during the primary term of this lease, under the contingencies above stated, shall be added to the primary term of this lease.
17. Lessor hereby warrants and agrees to defend the title to the lands described above, and agrees that lessee, at its option, shall have the right at any time to pay for lessor, any
mortgage, taxes or other liens existing, levied or assessed on or against the above described lands in the event of default of payment by lessor and be subrogated to the rights of the
holder thereof, and Lessor hereby agrees that any such payments made by lessee for the lessor may be deducted from any amounts of money which may become due the lessor under
the terms of this lease.
18. This lease and all Its terms, conditions, and stipulations shall extend to and be binding on all successors in Interest, in whole or in part, of said lessor or lessee.
19. With respect to and for the purpose of this lease, lessor, and each of them if there be more than one, hereby release and waive the right of homestead.
WW REOF witness our ands as of the da .and year first above written.
ih fie 7 e
Joanp Marland
STATE OF California
COUNTY OF -4 ss.
/f/Z zee'
On this ID day of 2Q013rbefore me personally appeared Alfred Eugene Marland and Joanne Marland, husband and wife. to me known to be the
person(s) described In, and who executed the forego g instrument, and who acknowledged to me that they executed the same as their free act and deed, Including the release and
waiver of the right of homestead.
Given under my hand and seal this
My commission expires:
4 a— /8 Df
FomuAa .,dup-HBSI-MSTR
Jo 12
JOHN A. WE88
Commission )257309
Notary Public Cattfon*
Riverside County r
My Cornm. Etpines Mar 18.2004
day of ✓,`�fr✓llo�l/ r/
aW.
Notary Pub or the State of
residing at
fred u ene Marland
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is
INDIVIDUAL