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HomeMy WebLinkAbout865678pug „ain1l pact y„ agl sr of pa.uala. iajuutaiaq st lsa.zaiut jo aiul gotgm) aloN otp ui gpoj las owl agi of innba uoatagl Isaialui gltm `X odoJd paMizow agl loalotd of as rSpow jo Argo(' uo .zo /Cq paouunpu sums IF jo 1oauSlzoJ,% luauziCud agi (q) `FuioSraxoj agi jo iaq o jo suotluogtpout Jo suotlnitlsgns `suotsualxa `slnmaua1 /iuu par „saloN„ agl `aloN as.znooag -uoN acll gltm 1amo2o1 „aloN lua upuo0„ agl `aural of gulp uzou paluautaiddns puu pagtpouz `papuaure aq'Cum su) ooSr l.zoy\I Jo 1on2J ut 1ogrEpoyAJ ./Cq apuuz joaaag olup ail Jo sr pomp luounalfy pun aloN klosstu oid luo5utiuoD urelzao ingl (tt) Pui tug `0£ 1aquzanoN 3o ainp JClunluut Tuug u gltm `(SbZ`£b£`L£$) SIIVTIOQ OM.L CINVSIIOH.L HZ QDDIQNf1H 1 DIH L MOI'I'IIIAI NHAaS-AZ'HH,L JO lunouzu indtouud agi ut aagal1oj, jo Rug ut 1oa1SIzon Aq apuum joa.zag omp agi jo su pomp „aloN JCtosstuzoId as.mooag -uoN„ agi `auui of aurtl uzog paluauzaiddns xo pagipout `papuaure oq iCnuz sr) aloN kzossUUOJd aslnooa21 -uoN urepao iugi (t) ut pautniuoo JoRe21.1ow JO luatuaa12E pine luuuanoo `uotin5ggo kl0A0 put? goua jo aounuuol.zad am pun `XCq paouaptna ssaupalgaput iiu jo luauaud agl (n) „nl.Iado1d palnrl.zoiN„ agl `Xiiantioalloo) luauIJind uotionpoId agl utpnloxa `satlzado.zd am of JO III a.ztnbou .alum t! AMU .to sntl mou 1oS1$itoyN lugs soSounud pun siomod `saluisa 'ma'am! `sailtl `sigRu iiu tlltoj las xaljnutaxagl suotitpuoo pun suual agl of loofgns pun 1apun ooSrS low of su2tssu pun sXanuoo `Iano SIOS `s1OJSU 1l siuna$ `SOSu21zouz iCignoonazu Agoioq ao2u2liow `paapaimomiou Along am gotgm Jo Xounbapu pun idtaoa.z oqi `paitoa' utaloq ssaupalgaput agi 5utpniout `NOIZVIMGISNOD g'IHVn'IVA GNV GOOD 1IOd ZOOLL suxas `uoisnoH `t7S£ altnS `gi!WS OOZI Si ssaippn °Sogm „aa ndltoyAI dtgstaulznd palturti a.remuiaa n `•d•'1 'suoilisinbay saaJnosag Dog OL909 sroutilI `ZOSO aPOO i!RYAI `.zooid u1 LI `nznid auO TRH 1 'oUI `I aounutd a1aug 3d op st ssatppu asogm „Jozuzltow„) dtgsiauli d mum' a.remuiaa u `•d71 `6661 SPURS Aq `aurtL antioaJJg amp St ant1oa33a `666 i `i Jogmaoaa jo sr apuut st azuzi.zow„ sup) LNgJ 1V LS JNIDNVNId GNV imawaallov A.LRIn3gS `1JVO1'IOI^I SIHI 1NawaiV1S QNV Al 1f101S `a9V012IOIAI 'a r L r i 41 lr t `W7 �J XVI4 00 l uiuto,fM `,cIun,Q? 1,Ta m-. Q3At3338 691” RIJNd 2Id 7 -;4”- NOON JNRIIIDaS AO 1S0cRII1d MIL 110d ZOOLL suxal, `uolsnoH WITS WILTS OOZI °auI `saomosag OOg stuntijTM canals 9 f S 9 2 :OZ TINT (Emma' maim aNV Ag aaisanOai JNIQ2IO3 1 j(t 4x338 3.13 t (c) the performance by Mortgagor of each and every obligation, covenant and agreement of Mortgagor contained in this Mortgage; TO PROTECT THE MORTGAGED PROPERTY AND THE SECURITY GRANTED BY THIS MORTGAGE, MORTGAGOR HEREBY COVENANTS AND AGREES AS FOLLOWS: ARTICLE 1 DEFINITIONS 170 All capitalized terms used herein without definition shall have the meanings specified in the Non Recourse Promissory Note. In addition, the following terms shall have the following respective meanings: `Applicable Rate "means the rate of interest published in the Wall Street Journal from time to time, as the prime rate of interest. `Assignment with Reservation of Production Payment "means that certain Assignment with Reservation of Production Payment and Notice of Options to Repurchase dated as of the date hereof between Mortgagor and Mortgagee. 'Contingent Reversion Date "means the first day of the month immediately following the date on which the total volume of Gas produced and sold from the Properties equals 63,500,251 MMBtus. 'Equipment" means all machinery, equipment, improvements and other personal property and fixtures that are (a) either (1) owned by Mortgagor or (2) jointly owned by the Mortgagor and another Person(s) under the applicable Operating Agreements and (b) are attached or connected to the surface or the subsurface of the Wells. `Event of Default "has the meaning assigned thereto in Section 5.1 hereof. `Gas "means all natural gas and other gaseous hydrocarbons in, on, under, produced from or attributable to the Properties: teases means an oil and gas lease described, referred to or identified in Exhibit A, together with any renewal or extension of such lease (as to all or_any part_or_portion, thereof),__ and any replacement lease taken upon or in anticipation of expiration or termination of such lease (if executed and delivered during the term of or within one year after expiration of the predecessor lease), as to all lands described in the predecessor lease as described in Exhibit A, and all renewals and extensions of such replacement leases. MORTGAGEWY.DOC !mom amp !pea Jo azogllaM am of Igluaptoui OM JO uinliad a�niai supu kiolgin8ai .io Xio}ntnls Igmou.quoo !Ions sg 2Iy30SNI NINO (INV IIVdOSNI sIIaM amp goua mop sup Jo uoijonpoid antaoaz 11421.1 s .ioSa ioyi 10 Jo uoggiado am 2utuianoS Jo 2uqlooJJg s }il u i.iowlnSa.i :io `A.iopueis Ignuonzmoo xagpo pun `satouaSE AzowlnSai algiudozddn Jo szapzo uoggioid .to &utogds `Sutlood IIaM sE IIaM sg `smauzaa.an uojnliodsuuu `sluatuaaBg Sutssaoozd `sivauzaai2d 2uigzad0 tutotuaa.au lnotuugj Aug zapun pug ui (p) `.sainpxg pug 2uauzdinbg gons 2uisn mom age ui papnloui suoi &iuo3 age pug (RPM you azg goiqM) suoijntuzoj amp iaquinu otp oI st sazitpxg pug 2uauidtnbg tons uogriodo ziagp ut asn (silaM otp ui papnloui aou azg goiqM) suot }uuuol amp iogtunu aniglaz otp sg cum auius age ui si Igtp sa.m1xg pug auatudinba gons ui lsatamt papinipun ug 'mom amp poadsai ui pasn Apnisnloxa pug Amos Tau an Imp Inq `(i) asnglo ut paquosap asiMZag2o san xg pun 2uatudinbg Jo tuapxa otp (tt) pug mom otp Sutsuduzoo A.jzadozd znpuns Jotpo pun s.iolvipAgap `sanlgn `stossaiduzoo `szoi1u dos `szaluo.q `s3Iuul `stun 3utdwnd 'symptom Tutgm `Suisun `saugM011 `ot pump you lnq Sutpnlout 'mom aqi Jo gona Sutonpozd _to/pug guggzado `Jana 5unpoM ui pasn CIanisnloxa pug XINOs azu Imp sazn2xg pug 2uatudmbg IIg (t) ut (o) !pm alquotlddu age of alggmnquug sasuadxa gupgzado pug uogalduioo Tuglup Jo antis alguotiiodozd s,zoRatioj Xnd uoi i ilgo aq2 Suipnloui `ota.zagi alggmgtlug suapinq .zagmo pug saplgAoi Euiptuano `saiigAoz •tlsixa Aug (34) Ioafgns 'mom amp goga cuoz3 uotlonpozd o3 su u ui (q) `•IIaM gons o) alquoollg JO iuozl suogzgoozpAq zag2o pug sa 'Ho 3o uoponpoid of pug IIaM gaga o2 soma.' 2saza2ui pug aim `1gSu qons su 2Id30SNI KINO QNY IIvdOSNI `sIIaM aq; Jo gna 3o azogllom age ui (g) :isazami pug aim `1q0u s,zogayioysl IIu suratu„ saimado.id, DOCI'AfteDVD1.110141 °2uaui, i d uoijonpozd Jo uogenuasag qut ivatuu2issy otp of 11uatugoguy ui paquosap i(lzglnoi2zgd azouz pug ao2g own pan iasa i si saivadozd alp of pug ut wow/cud uouonpozd sugauz„ yuatudv uopanpo rd, '(luauiaaag gons Aug `02 pagOEuu z0 `jo iigd ait? goiqM stuatuaaz.2g guiouglgq suS pug aznpaoozd 2uijunooag Jo uuol Aug Sutpnlout) mom aqi `z0j Sut2un000g pug Jo uogi iado pug 2uillup alp guiuzanog JO `02 2ut1glaz s1uatuaa ag zagmo pug Szapmm `suogare Sap `swatuaaz2g uoi1gzi2iunuttuoo pug Sugood `uougzt2iun `s1uatuaazag Suiouglgq suS `s1uauzaa1 E 2ut2un000g Itun `2uauiaa1SE Sup 2tun `s1uauiaaz2g uun `sulouloadg Oup iado otp sugauI„ s;uawaa L2 .8uyvdadp„ MORTGAGEWY.DOC 172 (e) in the Leases INSOFAR AND ONLY INSOFAR as the Leases (i) cover or are allocated production of oil, gas and other hydrocarbons in place, in, under or that may be produced from the Lands and capable of being produced through the wellbores of the Wells, or (ii) pursuant to the unit agreements described in Exhibit A hereto, are allocated production of oil, gas and other hydrocarbons from the Lands included within such units and capable of being produced through the wellbores of the Wells, but including only such of Mortgagor's leasehold or operating rights as may be required to own and operate the Wells and to produce and market production of oil, gas and other hydrocarbons therefrom, including, rights to rework or recomplete each of the Wells; and (f) a non exclusive, irrevocable license and right to use: (i) all Mortgagor's interest in any rights of way, easements, servitudes, surface leases, tenements, appurtenances, licenses, and any other rights of ingress, egress, use or occupancy of the surface, to the extent and only to the extent the same relate, pertain or are incidental to the Wells or any of them, or the other rights and interests described in this definition of Properties; and (ii) all Mortgagor's interest in other personal property (other than the equipment described in subsection (c) of this definition of Properties) upstream of the point at which Mortgagor's share of production from each of the Wells is delivered for sale or exchange to a person who takes title to such production at such point, which personal property is necessary or convenient for the production, gathering, storage, transportation and/or disposal of oil, gas and other hydrocarbons, produced water, and other substances from each of the Wells, including but not limited to, common facilities such as tanks, treaters, separators, compressors, gathering systems and water disposal systems. `Wells "means the wells described in Exhibit B hereto INSOFAR AND ONLY INSOFAR as the formations in such wells described in Exhibit B, and which wells are located on the Lands, and at a location on said Lands, as is more particularly described in the location plat, or similar record, for each of such wells in the records maintained in the offices of the appropriate oil and gas regulatory or conservation agency for the state in which each of such wells is situated and identified by the API Number- shown on Exhibit B. ARTICLE 2 COVENANTS AND AGREEMENTS OF MORTGAGOR -xapunaxaq aprm st plus g xaUE xo `Allu0xmpuop `axojaq x0440 `uoildo slt lu 'gums a41 uodn azquax as1Mxaglo 10 joaxagl alas am aoxoJua /Cum 11 `4ata4 pampas suotlaggo amp Aug .zoj Alunpas luuo111Ppu splog aurtl Aug lg =Sallop lug/kg aq1 uI •ssaupalQapui pigs jo luaulAgd am .zoj xas.zopua 10 xolugxgnS 'Aims `xa7luut Aug Jo iCltltggq aql .0 durt .zo mug 1011 tiggs pug a2g2lxoyu s1g1 Jo uatl ipaJ.a `ao1oJ am usluiuuig lou pits ssaupalgapur 0111 jo luaurAud Jo aunt ogjo uotsualxa Aug io `Alunoas agl jo sasgalax !glued Jo uotlnoaxa `iClunpas luuoilippg J0 dut}lel aq j •antlulnumo sg pIaq pug paxaptsuoo `ualgl aq pip Alunoas p uoruppg HE pug `agglxow s141 Jo uognoaxa am ,Cq paloajjg x0 paxiudu1l aq Timis 'wag Jo Aug .to `suopaggo Bons o1 loodsax 411M .tas1opua .zo xolugxgn2 `Ala.ms `xa}lgul Aug Jo iClgiggil 043 JOU JCgaxaq pampas suotlaggo ag1 moos 03 `110}141 xa}luaxa4 .zo `Su1lsixa Mou IClunpas x0410 oN •4unaaS 1euoillppV b•Z °Agaxaq pampas aq Hulls sums plus `ptud'pun `pug lunoulg lions piudax uaaq sgq =Sallow lilun amltpuadxa lion Jo amp age uuox3 0142 paadly aql lg uoaxa4l lsaxalu1 411M x0410203 `41tMaxa43 uOTlpauuOp ut paouauIUIOO (Ilgnl0g st uoupg ire 1011 x0 x04l01M `sasuadxa pug slsoo `saaj ,sICauxollu pug mama= pug `slsop lino° `allildo aouaptna Jo slsoo 3ulpnlpu1 `s14 &1.3 gu1aaxoj a41 Jo =Sallow iiq aSlpxaxa 041411M uo130auuop ut li iCq paxxnout sasuadxa pug slsoo qv of Ignba luno11re uu 0a uSuoj 03 ,Cud aaMlxml Act xojaxagl puuuzap uodn Alaluipauzurt `llggs xoSESlxoykl •slugllnsuoo alquxisap xo ,Q ssaoau xa410 xo psunoo Jo lugulAoiding 2utpnlpui `sasuadxa £i ssaoau Alquuosuax /Cud of `SxaMOd lions ut (A) pug `.Agaxag palu010 uaq am jo Aluoud a41 1pallg 03 sxgad& 10 Slp0JJ x0 a5u2lxoyAl 6141 Jo ilunpas 041 l0ajjg 03 sxgaddg 10 Sl0aJJg aaRgSlxow Jo luauapnf a41 111 4014M lgop xo uaq `0511 q0 `tulgj0 `aougxquznoua Aug astuxoxduzoo xo 1SO4U00 `asggomd `Agd 04 (Al) `008u2lxoyAl Jo sxaMod xo sl4Su am xo joaxaq Alunoas agl loamy ,Cgu1 goigM .10 23413011g Sulpaapoid x0 uogou Aug u1 algdtpilxgd pug xgaddg of (iii) `•xigdax pug uoiltpuop poo 111 iClxadoxd paSalxow 041 daaN 01 xadoxd 10 IRSS00au xapisuoo Amu 4 40t4M ,Clxadoxd pa2alxow am 03 sxigdax pug suolluxallg `suoilippg avid 01 (11) °Xlxadoxd paRu2lxoyyl a41 Jo uoissassod 0)IE1 pug uodn xalua o1(i) :uoge2ggo 0431011 lnq `14Su 041 uan1S Agaxaq Si pug aq Ilg4s a0 1.Iow '(Mg1 Xq 10 saloN a41111 `1110x04 paxxajuoo xa41a4M 'SxaMOd xa410 pug lux0ua2 s4i 2 uiliuz4 lnogliM) 4IIMaxag1 uotl0auuoo uI poaxa4,Ciunpas 041300301d o1 Xxgssapau tuoop Amu 11 su 11101x0 4pns 04 pug x0uUgul lion 111 guns a41 op x0 03lgul,Cgul `uol3ES4lgo iCug u1O1j x0MlxOyAl 2uisgalax 1no41tM pug `OS Op 04 u0tlagg01n0g4iM'u0tlax0s1p uMO S1t 11t `aa3g2lx0yAl `saloN am ut JO aRalxoN ag1114 papinoxd IODUEUI 041 ut pug se log Aug op 01 si!EJ xoSgSlxoyAl 3i `040N a41 JO L uotloas xapun lingj0Q Jo lug/kg LIE JO luaAa am uj .S.padoid pa2u2lxoyAl annsaad of aa2u2liow Sq suollaV £'Z •pags9us uaaq mug o1 JClantsnlpuo0 pauxaap aq Ilggs luuuanoo 5141 'papa ut Suiuutax `0001041 algil1JE Aug xo) aoSatzoysl pug xoSalxoyAl u0ahlaq gliMaxaq amp uan0 Jo 11301.1100.35y sapping luauzagugyg uiglxao 11141 sg 33301 os `11141 papinoxd `xauuulu a)ltlssautsnq pug luapnxd g ut pug xtgdax pug uotltpuoo pooS 1114Iodoxd paSaixow a41 anxasaxd pug uiglureul ljg4s •suoil1JallV '.zigdag 'aaueualutuiN Z'Z •SaloN 041 ui papinoxd Su ao2g2uow Ol anp slunotur xa410 Ilu pug lsaxalut `lgdtouud a41 anp ua4M /Cud Hugs xoSalxow •su0 331 1lgp pa.tnaas jo luauc,Cud I'Z E,1 3oafAM3DVD.laow ARTICLE 3 ASSIGNMENT ()�,�►'6, 17 4 2.5 Mortgagee's Powers. Without affecting the liability of any other person liable for the payment of any obligation herein mentioned, and without affecting the lien or charge of this Mortgage upon any portion of the Mortgaged Property not then or theretofore released as security for the full amount of all unpaid obligations, Mortgagee may, from time to time and without notice (i) release any person so liable, (ii) extend the maturity or alter any of the terms of any such obligations, (iii) grant other indulgences, (iv) release or reconvey, or cause to be released or reconveyed at any time at Mortgagee's option any parcel, portion or all of the Mortgaged Property, (v) take or release any other or additional security for any obligation herein mentioned, or (vi) make compositions or other arrangements with debtors in relation thereto. By accepting payment or performance of any obligation secured by this Mortgage after the payment or performance thereof is due or after the filing of a notice of default and election to sell, Mortgagee shall not have thereby waived its right to require prompt payment or performance, when due, of all other obligations secured hereby, or to declare a default for failure so to pay or perform, or to proceed with the sale under any notice of default and election to sell theretofore given by Mortgagee, or with respect to any unpaid balance of the indebtedness secured hereby. The acceptance by Mortgagee of any sum in an amount less than the sum then due shall not constitute a waiver of the obligation of Mortgagor to pay the entire sum then due. Mortgagor's failure to pay the entire sum then due shall continue to be a default, notwithstanding the acceptance of partial payment and, until the entire sum then due shall have been paid, Mortgagee shall at all times be entitled to declare a default and elect to sell the Mortgaged Property, which entitlement shall in no way be impaired, whether or not such amounts are received prior or subsequent to any notice of default given hereunder. No delay or omission of Mortgagee in the exercise of any right or power hereunder shall impair such right or power or any other right or power nor shall the same be construed to be a waiver of any default or any acquiescence thereto. 3.1 Assignment of Production For the purpose of additionally securing the payment and performance of all Mortgagor's obligations under this Mortgage and to provide an additional means of paying the Notes and as cumulative of any and all rights and remedies herein provided for, Mortgagor hereby TRANSFERS, ASSIGNS, GRANTS, CONVEYS and SET OVER to Mortgagee, and its successors in interest as holder of the Notes, and grants to Mortgagee as Secured Party a security interest in, all of the following: MORTGAGEWY.DOC (a)_ _,11 _011, gaa,_asinghead gas,slistillate_ and. other minerals, -and the proceeds therefrom, produced and to be produced from the interests of Mortgagor in the oil, gas and mineral leases, properties, processing plants and interests now or hereafter constituting a part of the Mortgaged Property from and after 12:01 A.M. on -6- Iuatu.ad antaaa.t 'CIa3EtpauwLLil astozaxa o31ou s3oE .'Iuoo .'o sag .'adold.1> Inot3zgd o3 3oadsa.' 43!M pop molls Oaa3zoy\J `oouatuanuo3 Sy! .zoJ }Etp Irma 043 uI °asplaxa -uOm .1o2g23.'o1A1 jo aumu 043 ur JO au reu uMO s3T ui .'a41ma ons Amu Ii (3ms Bons Aug 2uuq o3 3q u 043 any! 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'miry .'o luasazd `30113UO3 i(UE ropun .'o (soiiiodozd pa .'robot -za33E Aug 5utpntout) A3zad0 .'d p02g23zoyit 043 Jo Xus Uzozj zoSuSpow 03 algE/ 3d =wag 4D14M 0uroout pus sanuanaz `sums `s3unoure IIFr (o) •A3zadozd poRtS3zoj 043 j0 3 .'td t ourooaq 03.'apEa .'a4 .'0 Mou s1oE .'3uoo Suissaoo .'d std ire pus `s30EZ3uoo uogE3zodsus13 S IIE `s3Dg.'3uo0 saps 0IESUapuo0 .'0 01EII!Sip Iio THE `s30g .'3uoo saps S IIE .'apun pat3t3ua si 10$E23.roy\1 LIDt4M or .'O .'o2t5310JAI 03 oigsAed autooaq o3 .'0 03 oiquA d io jEazaq sp0000id zo s3unoure IIy (q) pomp St 02ESI.'oyAt Si41 4D[4M ui 43uour 0143 5uipaoazd 41UOiu zgpualg0 043 Jo ,gp I S .'3 041 1.T 4 ;9 O 30c1 AMaDVDDIONI MORTGAGEWY.DOC 686S-it' Tit'i 176 of oil, gas or mineral production, then the oil or gas purchasers of production from the Mortgaged Property or other persons obligated to make such payment shall continue to make payment of such proceeds or amounts to Mortgagor until such time as written demand has been made upon them by Mortgagee that payment be made direct to Mortgagee. Such failure to notify shall not in any way waive the right of Mortgagee to receive any payments not theretofore paid out to Mortgagor before the giving of written notice. In this regard, in the event payments are made directly to Mortgagee, and then, at the request of Mortgagee payments are, for a period or periods of time, paid to Mortgagor, Mortgagee shall nevertheless have the right, effective upon written notice, to require that future payments be again made to it. 3.4 Transfer Orders. Independent of and without limiting the foregoing provisions and authorities herein granted, Mortgagor agrees to execute and deliver any and all transfer orders, division orders and other instruments that be required by any purchaser of the production from or of gas or oil or products delivered through, any of the Mortgaged Property to effect payment of the proceeds thereof directly to Mortgagee. If under any existing gas sales agreements or products sales contracts, other than division orders or transfer orders, or under any gas transportation contract, any proceeds are required to be paid by the purchaser or transporter direct to Mortgagor so that under such existing agreements payment cannot be made for such proceeds of runs to Mortgagee in the absence of foreclosure, then Mortgagor's interest in all proceeds under such sales agreement and in all other proceeds or payments which for any reason may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in his hands (and Mortgagor grants to Mortgagee, as Secured Party, a security interest in Mortgagor's interest in such proceeds) and shall be immediately paid over to Mortgagee, if Mortgagee has requested that such payments be delivered to it under this assignment. 3.5 Indemnity. Mortgagee and its successors and assigns are hereby absolved from all liability for failure to enforce collection of the proceeds and amounts assigned under Section 3.1 above and from all other responsibility in connection therewith, except the responsibility to account (by application upon the Notes or otherwise) for funds actually received. Mortgagor agrees to indemnify and hold harmless the Mortgagee against any and all liabilities, actions, claims, judgments, costs, charges and attorney's fees by reason of the assertion that they or either of them have received, either before or after payment in full of the Notes, funds from the production of oil, gas, other hydrocarbons or other minerals claimed by third persons unless such claims arise as a result of the willful misconduct or gross negligence of Mortgagee, and the Mortgagee shall have the right to defend against any such claims or actions employing attorneys of their own selection, and if not furnished with indemnity satisfactory to each of them, they shall each have the right to compromise and adjust any such claims, actions and judgments, and in addition to the rights to be indemnified as hereinprovided, all amounts paid by the Mortgagee in compromise, satisfaction or discharge of any such claim, action or judgment, and all court costs, reasonable attorney's fees and other expenses of every character incurred by Mortgagee pursuant to the provisions of this Section shall be demand obligations owing by Mortgagor and shall bear interest at the Agreed Rate from date of expenditure until paid and shall be secured by the liens evidenced by this Mortgage. -8- 6 loop Amu Apud pa tnoas se .tauugtu .to zapzo Bons ui `a2n21iow slap pamoas suognSijgo pun ssaupo gopui zagto jjn puu saloM age 2utpnjout Agazaq pamoas suoge2tjgo s,zolgaQ ail Jo IuoimCnd pznnnot pug 'Al .red pamoas Aq paunoui i gazai j sasuadxa j>?5aj pug sooj ssCauzo ue puU sasuadxa puu slsoo Aug jo luaut,Ced preMouoaoagd spaaoozd alp Ajdde of pun `zolgap e Aq ajnnjop za a apoj In1ozauzuzop uuojlun plus zapun palttuuad zo pazuoglne zauunuz Niue ut joazagp sped zo put Cue pun jnzainjjoj atp azgmn JO aseaj jo asodsip asinuatpo .to `sajns .to ales aWniud JO otjgnd le 'Has of Jomod pup 1q2!.! oq `uouelztuij 1notpIm Tutpnjoui „Intamoj„ sr oT pauajoi uiataq Sutaq Apadozd pa2e2pow amp uotlzod Bons) Auadozd pa2u2liow atp uT papnjoui saznlxg pun (ajgOunlui JO ajgOuei) Xzadozd jeuoszad age Jo Tied Aug zo Ile o} se SuTuzotiM ui papeua su apoj jeiozauzuzoD uuojiun atH .tapun pao oid lingo(' auang iCue JO Juana 3111 UT 'ARM `mod paznoas se `aag1Silow aogallo I o� 4uauttutsut sltu uT paluez$ satpauzaz zag4o Aun 04 uomppn uI (e) IMaVIaIV S 9NIDNVNId CINV £LRIf1D S b a'IDLULd DOU AM3DVDfl1ON1 lap `Alma pamoas Bons se `aage$pow glinn saazige pue s}ueuanoo pun `SuiuzoiCM uT paloeua se apo3 IeiozatutuoD uuojiun ago of pafgns aq Cu eu gotgnn (Sugsixa zagnazag JO nnou) 4zadozd paSn21JoJAJ age Jo Hr ut 4saza4ut X4unoas e 'Aged paznoas se `aaS>?Sa toy\I own S,LNY' JD Ajssatdxa `IowgaQ sn `zoVuSpow `4uaurtu4sui slip 3o suoisTnozd ail 3o Cue SugTurtl 4no1pTM •luauzaaz2y All.moos I•fi •anoge j uopoas uT paquosap slun000e Hg pun uzozjazatp spaaoozd pun sjnzauttu Jaw pun apellijstp `suS pnagSutsno `suS `Ito a1Uo He 04 pun u! Immix!! Aunoas a 'Aped pamoas se `aoSuSiloj, own s4uez5 s4uasazd asatp Aq `Iowa se `zaeSlzoJA `SutoSazol alp Sugtuuq }nog4inn `zaga.m3 •IsaialuI S.IjznaaS L'£ suogeuado s,zoSallow ut asn ioj tun000n sit of Ttsodap 4 (o oN aqp of paijdde ue p zamat) zoSa4.toJAI of pauzntaz oq on! Aq paniaoaz spunj 4iuuad `uottazosip alos s4! uT `,Ceuz aa5a4tow a4oN atp of pa!jdde Ajjnntoe axe spunj lions jqun pug ssajun aloN am Jo Iuautked of patjdde pump aq }ou Ijngs pautewoo utazaq s4uatuuSissn ail zapun pantaoaz satuoN Agazag paznoas suopuSucio pun ssaupatgaput imp jjn pun atoN aqm Jo IuaUXXnd aqt aznoas oa 2upsTxa zagnazaq JO MOU zalonzngo Xzana pun Aug Jo Akunoas =Ho Hy Jo angnjnuzno act Hugs aaalzoj^I sig4 zapun s4qpiu alit pun `gums alit /Ced oa luaiogjns azn pauSissn utazag spaaoozd aqt 104404nn 3o ssajpiuSaz cog Xnuu asno alp se `utazaq papinozd JO OWN aq4 ut papinozd zautteuz aq4 ut pun autp 0144 4e zapunazaq SuIMO s4unot.e jle jo auauz,Cnd 4duzozd oral 04 zoBa4oN Jo uogaggo a4nlosge atp zo `uoazagl 2utnno s4unou1n jje Jo pup a4oN 0141 JO 4uauuCpd 4duzozd a)Ietu o1 zo2n2I10N 3o uoge2ijgo o nlosgn aq� 111114 in wog loezpp limp paumuoo utazag 2uupoN •uoilaatjgp alnjosgy 9•£ MORTGAGEWY.DOC 178 (b) The rights of Secured Party in the event of default shall include, without limitation, the right, by any lawful means, to take possession of the Collateral or any part thereof and to enter, in any lawful manner, upon any premises where same may be situated for such purpose without being deemed guilty of trespass and without liability for damages thereby occasioned, and to take any lawful action deemed necessary or appropriate or desirable by Secured Party, at its option and in its discretion, to repair, refurbish or otherwise prepare the Collateral for sale, lease or other use or disposition as herein authorized; (c) To the extent permitted by law, Debtor expressly waives any notice of sale or other disposition of the Collateral and any other rights or remedies of Debtor or formalities prescribed by law relative to sale or disposition of the Collateral or exercise of any other right or remedy of Secured Party existing after default hereunder; and to the extent any such notice is required and cannot be waived, Debtor agrees that if such notice is mailed, postage prepaid, to Debtor at the address first shown herein at least ten (10) days before the time of the sale or disposition, such notice shall be deemed reasonable and shall fully satisfy any requirement for giving of said notice; (d) Secured Party is expressly granted the right, at its option, to transfer at any time to itself or to its nominee the Collateral, or any part thereof, and to receive the monies, income, proceeds or benefits attributable or accruing thereto and to hold the same as security for the Debtor's obligations or to apply it on the principal and interest or other amounts owing on any of the Debtor's obligations, whether or not then due, in such order or manner as Secured Party may elect. All rights to marshalling of assets of Debtor, including any such right with respect to the Collateral, are hereby waived; (e) All recitals in any instrument of assignment or any other instrument executed by Secured Party incident to sale, transfer, assignment, lease or other disposition or utilization of the Collateral or any part thereof hereunder shall be full proof of the matters stated therein and no other proof shall be requisite to establish full legal propriety of the sale or other action taken by Secured Party or of any fact, condition or thing incident thereto and all prerequisites of such sale or other action or of any fact, condition or thing incident thereto shall be presumed conclusively to have been performed or to have occurred; (f) Secured Party may. require Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party that is reasonably convenient to both parties. All expenses of retaking, holding, preparing for sale, lease or other use or disposition, selling, leasing or otherwise using or disposing of the Collateral and the like which are incurred or paid by Secured Party -10- Ii Anna aslataxa of pajlilua aq jjggs =Sallow zo 'swat ain jo Amp uongotjddg pug idiaoaz `uouoaiioo Ogg JO Xiiadozd pagSpoj, agl jo uotiiod Aug JO jjg JO IoAiooaz E JO aoStSpow Xq uotssassod ut aougnuguoo alp 2utpuelsq im }ou `pug tjni j p 3o aotaou gons wuEnsznd 10 ljngjap lions of asuodsai ut auop tog Aug algpijgnui JO Japunazag ijngjap Jo aopou io lingjap Aug anigm JO a1n5 IOU togs `ptEsazojE se joazagl uoilgogddg all pug qua! !Ions Jo uogoajjoo alp `Xiiadozd poSgSpoj agl Jo uotssassod SupjEt pug uodn Suualua aq j •OUtuuamap Xgui aaaitow se zapzo gons ut jji `Agazag painoas ssaupalgaput Aug of `saa3 ,sXauzollg Suipnjout uotloajloo pug uotlgzado Jo sasuadxa pug slsoo ssaj 'owes alp Ajddg pug `ptgdun pug anp lsgd asotp 2uipnjout 'swat Ogl pawn asimzaglo JO zoj ons `Xiiadozd poSalloytj agl Jo uotssassod SuDlel lnoglim _to gilm `pug pang Xlunoas agl loalozd JO uiozlazagl OWOOUI alp Osga1OUI `Uiazagl lsazatui JO joazagl 11Ed 10 `Xitadozd poSapo l mg Jo Xliiiggtuaz JO Xitjiggla)p ut `anjgn agl anzasazd of Ojgansap zo Xzgssooau suiaap It g0igm log Aug op pug `auzgu umo sli ui `joazagt tzgd Aug zo `Xiiadozd poSapow agl Jo uotssassod avl pug uodn zalua `Alimoas si! Jo Aounbapg agt of preSaz lnogltm pug iino° E palutoddg zan103az E nq JO Tutpaaoozd zo uotlog Aug SutSuug lnoglim 10 gltM `1u02g Xq 10 uoszad ut zagtig ITS :2utmoljo3 Oqt uo jig zo XUE op Xrnu aoSeSpow `uotldo pigs sastozaxa ooSESitoy\j lou 10 zaglagm pug `punj Aug 3o aOilou JO lsalozd `puguzap luauiluasazd Xue lnoglim ajggXgd pug anp Xjalgtpauzuit aq of Xgazag paznOas suotlatjgo pug ssaupalgapui jig Ozgioap `uogdo sli tE 'Amu ooStS tow `ljng3OQ Jo luang ug Jo uoggnutluoO pug aouazm000 alp uodn •satpatuag leuollippv tlinejaQ node notleaaIa33V Z'S °zapunazag ljng,.aQJo luang ug pauzaap aq uggs aloNwo2unuoD atop 9 uoitOas zapun „ljngjOQ3o Luang„ ue 10 atoNasznooa21 -uoN agl jo L uotloas zapun „ungjoa Jo liana„ ug Jo aouazzn3OO ags, •linetaQ Jo s rS ,i'Ifnv,Iia AIOdfl saIQahi ni S W'IDIIMIV 6L1 9!;9S0 DOOEARRaDV D1aow Xitadozd pagSpow Ogl ut moat Jo lsazalui ug sEg zolgOQ aq j •SutuioXM ui palogua sg apoj jg!OZauzuzo3 uuOJiun alg JO £017 Pug ZOV6 suottoas JO SUOISLnozd agl glim aOUEpzoOOg ut luaUZalgts 2utouguid E sg anilOa33a osig aq of uodnazagl st pug •palgooj si pgagautui zO peogjjam alp azagm sailunoO zo Xlunoo alp Jo spzoOaz alglsa mat alggotjddd aql ut pzooaz zoj palm aq of si TutuioXM Jo awls alp ut patgooj jgzalgjjoJ Jo swan zo sodicl !Tons of loadsai giim 02apoui g SE pajg uagm pug `pgagauiw zo pEagjjam agl lE joazagl ajgs agl wog Supinsaz slunoOOg sg gam sg `palogzlxa aq of pug patoe.nxa (si5 pug Ho 2utpnjoui) a' pj alp 10 sjgzautuz `uouElturtI lnoglim `Sutp zaM njOUi `jgza1Ejjo3 Om sOO luauinzlsut sign °luatualels 2UPnea[d z:17 °zopazagt am!' aq jjggs zotgoo pug suouatjgo s agl of pappg ag ins `slsoo pug sasuadxa 'ESN `saaJ s,iCauzottg jji osjg 2uipnjoui `zapunazag pattiuuad _to pazuogtng SE OS:6 `'1 right provided for in this Mortgage, the Notes or by law upon occurrence of any Event of Default, including the right to exercise the power of sale. 5.2.2 Commence an action to foreclose this Mortgage as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof. 5.2.3 Exercise all other rights and remedies provided herein, in the Note or in any other document or agreement now or hereafter securing all or any portion of the obligations secured hereby, or provided by law. 5.3 Appointment of Receiver. If an Event of Default shall have occurred and be continuing, Mortgagee, as a matter of right and without notice to Mortgagor or anyone claiming under Mortgagor, and without regard to the then value of the Mortgaged Property or the interest of Mortgagor therein, shall have the right to apply to any court having jurisdiction to appoint a receiver or receivers of the Mortgaged Property, and Mortgagor hereby irrevocably consents to such appointment and waives notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases and all the powers and duties of Mortgagee in case of entry as provided herein and shall continue as Mortgagee, respectively, in case of entry as provided herein and shall continue as such and exercise all such powers until the date of confirmation of sale of the Mortgaged Property unless such receivership is sooner terminated. 5.4 Application of Funds After Default. Except as otherwise herein provided, upon the occurrence and continuation of an Event of Default hereunder, Mortgagee may, at any time without notice, apply any or all sums or amounts received and held by Mortgagee to pay insurance premiums, impositions, or either of them, or as rents or income of the Mortgaged Property, or as insurance or condemnation proceeds, and all other sums or amounts received by Mortgagee from or on account of Mortgagor or the Mortgaged Property, or otherwise, upon any indebtedness or obligation of the Mortgagor secured hereby, in such manner and order as Mortgagee may elect, notwithstanding that said indebtedness or performance of said obligation may not yet be due. The receipt, use or application of any such sum or amount shall not be construed to affect the maturity of any indebtedness secured by this Mortgage, or any of the rights or powers of Mortgagee under the terms of the Notes, or any of the obligations of Mortgagor under the Notes, or to cure or waive any default or notice of default under the Notes, or to invalidate any act of Mortgagee. 5.5 Costs of Enforcement. If any Event of Default occurs, Mortgagee may employ an attorney or attorneys to protect their rights hereunder. Mortgagor promises to pay to Mortgagee, on demand, the fees and expenses of such attorneys and all other costs of enforcing the obligations secured hereby, including recording fees, Mortgagee's fees and expenses, receivers' fees and expenses, and all other expenses, of whatever kind or nature, incurred by Mortgagee, in connection with the enforcement of the obligations secured hereby, whether or not such enforcement includes the filing of a lawsuit. Until paid, such sums shall be secured hereby and shall bear interest, from date of expenditure, at the Agreed Rate. MORTGAGEWY.DOC -12- 180 OL909 'II `oSeolgj ZOSO II apoj j U JA `100 1.d 41L Enid alto Aug I ouj `j a0ueut3 Maug a3 op 'd•"I `6661 sPugS ft�is 3oQ'AM3Ov9U1O1 :smoiloJ se `Adooajaf 41110S 10 `palsanbal idiaoa.t ulnfal pue p!Eda1d aelsod `pguz paupiao fCci paiieuz `Xiieuoslad patanliap aq pus pue SupUM ut aq Bugs .iapunaiaq uanIS aq of paiituuad 10 paltnbal suolvoiunuzuzoo latfo puu suoifonllsut `puetuap `sisanbal `saogou Hy •saatlom S'9 •.zapuna1aq plan uagi ICfladold paeSflow am Jo uopiod /Cue `Aiue u M inotolm 'ma'am palftiva AiieSai suoslad 10 uoslad ati of 10 `IOSVS1101A1 of ACan11000J puu aseajal liegs aa2egilow Xgataq palnoas suoifm ijgo pun sums Ile 3o iin3 ut luattaud uodn •aa2g2poJAJ aseaiag 17•9 •101gals Si 1anagONM `103a1atp aa2e2fl0JAJ 01 Iwo ienfoe am 10 .tojaioq saS.le1O /Cieutolsn0 spaSuS low 111M aouepi000e u1 uatf `mntuixetu Bons ou aq a.lagl 3i 10 `1oJaiatl Isanbal am 3o aum aqI pe mg! Xq paflluuad lunotue tuntuixi to aqI o n qo /Cem aa01 low `aaSeSpoy/ Aq 1OReSil0JAJ OI pagsitun3 Iuatutulsui 10 luatunoop lagfo dire 10310 'my' aigeoliddd 3o uotsinold Aug of fuenslnd uoslad papifua lagfo Cue 10 JoSe22ioj^i Xq palsanbai 2utfun000e 10 IuatuafElS AUE lOd 'slUaWalels aa3E31.1O1A1 £'9 •saifalns 3O satpauzal pug Sl42u am oI SututEilad sMEi am Jo uosEal tCg flassE of aigi aq 10 aim( Amu 1oSalloy/i uotgM satpatual pue Hu (II!) put 'paw= Xgalaq suau agfJo alnsoioalo3 3o Juana am ui Sugugsletu pue ssaupalgaput palnoas am 3o aiogM 0j anp =pap 10 animal o uopoaia Jo aotfou `uoifnoaxa Jo XEfs `lesiElddg `uo!ienTEA `uoifdmapal Jo si S1. Iie (it) `Pafealo 10 2UISLI laf3Ealaq 10 Sugsixa Mou laufatiM 'pug `�Cfladold paSE�iloy� amp uoglod �Cug 3o op s aloJaq iesiEldde Cue 1o3 5utpinold papEUa aq la13EaJag Xetu Teti 10 SUUS!xa MOU SMEI iie 3o ii3auaq a 4I (t) Mel Xq palittulad ivafxa aqT of SanteM IOSES11ON 'wpm jo lanleM .co3uSpow Z'9 poalag S•9 uopoas u1 pagtoads Jammu am ut Aind _mug() aqi of J igd pies i q luas aq filets luautnlfsut plus 3o Xdoo `I •110nos st uojeuiuuaf 10 aS1Eg0SIp `aSueg0 `1aAIEM i ue3o fuatuaaloJua mown Tsute2e Riled alp Xq paints 2119um ui Iuatun.nsui uE Xq Xluo Tnq `Xij 10 papeutuual 10 paaleg3Sip `paaueg0 `panieM aq fouug0 fuatunmu! sits j -sluguipuaury V9 SflOaNVIrlaDSIBI 9 a'I3I.LlIV •Molaq S uopoas ut tilo3 fas ssalppE ail TE Ti 01 pairetu ag lapunalat aigs 3o aotfou pug fineJap 3o aotfou /Cue 3o Xdoo e leiT sisanbal Along 1o21STlow •aailoN .ioj lsanbag 9•S T8T M Attention: President Telephone: (312) 732 -8100 Telecopy: (312) 732 -2569 Mortgagee: EOG Resources Acquisitions, L.P. 1200 Smith Street, Suite 354 Houston, TX 77002 Attention: Vice President, Finance Telephone: (713) 651 -6458 Telecopy: (713) 651 -6980 -14- 182 or to such other place within the United States of America as any party may designate as to itself by written notice to the others. All notices given by personal delivery or mail shall be effective on the date of actual receipt at the appropriate address. Notice given by telecopy shall be effective upon actual receipt if received during recipient's normal business hours or at the beginning of the next business day after receipt if received after the recipient's normal business hours. 6.6 Caption. The captions or headings at the beginning of Articles, Sections and Subsections hereof are for the convenience of the parties, are not a part of this Mortgage, and shall not be used in construing it. 6.7 Invalidity of Certain Provisions. Every provision of this Mortgage is intended to be severable. In the event any term or provision hereof is declared to be illegal, invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction, such illegality, invalidity or unenforceability shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Mortgage is invalid or unenforceable as to any part of the indebtedness intended to be secured hereby, or if the lien is invalid or unenforceable as to any part of the Mortgaged Property, then all payments made on such indebtedness, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid on and applied to the full payment of that portion of the indebtedness which is not secured or not fully secured by the lien of this Mortgage. 6.8 GOVERNING LAW. THIS MORTGAGE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISION THEREOF, EXCEPT TO THE EXTENT MANDATORILY GOVERNED BY THE LAWS OF THE STATE IN WHICH THE MORTGAGED PROPERTY IS LOCATED. 6.9 Interpretation. In this Mortgage the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa, if the context so requires; and the word "person" shall include corporation, partnership or other form of association. 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Wi a sses to all signatures° Printed Name: e (o ('a SS MORTGAGOR: Tight Sands 1999, L.P., a Delaware limited partnership By: Tight Sands G.P. 1999, L.L.C., a Delaware limited liability company, its general partner By: FC Energy Finance I, Inc., a Delaware atio ole member By: MORTGAGEE: EOG Resources Acquisitions L.P., a Delaware limited partnership By: EOG Resources Property Management, Inc., a Delaware corporation, its general partner By: Printed Name: ui.. 4k fe- g John M. Eber Managing Director David R. Looney Vice President, Finance 184 zo /Z L/6 saildx3 uolsslwwoo AyA slou!III ;o a s 'allgnd AJe 1oN i S3Wvr 'V N331HIVN old3S 1VIOI330n ••••••A 4 ••0••o•.f.A@a•4AO. :saudxg uoIsstuuuzo0 i(J, R T AAA diusiaulird plus Jo JINN uo `digsiauvrd pouum anAke a r `'d" I `6661 spues 112I,L Jo nulled lriauaa sr `i(urduzoo'ppgetl pouuul a.zrnnelaQ "D `6661 'd'o spurs I STIJo .iaquzauA 0105 sV `110t11.10dh03 a.JLMLIaU `•ouJ `I 001LUid anug Da Jo zoloa.zTQ 5u15ruryAI `zagg •JAI col Xg `6661 `1aquzaoaQlo /Cep a ,S i aul uo auz azolaq pa5palnnouvr srm luauzrulsut aca xooa d0 AINI1OD JO aivis WY USW- i'' STATE OF ILLINOIS COUNTY OF COOK This instrument was acknowledged before me on the 15 day of December, 1999, by David R. Looney, Vice President, Finance of EOG Resources Property Management, Inc., a Delaware corporation, as general partner of EOG Resources Acquisitions L.P., a Delaware limited partnership, on behalf of said partnership. State of a i Not Ty, State s 186 My Commission Expires: 'Via �o a "OFFICIAL SEAL" KATHLEEN A. JAMES Notary Public, State of Illinois My Commission Expires 9/12/02 .•moo ♦Aws ♦.:�sih9we A••Poo•♦ 3n3- fins 501 Dd 4£ )18 PS61 /10 /SO 71 131131S IZI Od PE X8 4561/10/;0 3.LL318fS EZI Od 4E X8 4561/10/;0 71 17181S SZI Dd 4E )I8 £561/10/40 3LL31finS 6ZI Od 4E )I8 4S61/10/50 711713(1S LZI Dd 4E X8 8;61/10/40 N103NI1 ZOI Od O£ X8 8S6I/ZZ/80 N100NI1 9L1 Od ZZ X8 LS61/80 /SO N100NI1 ZZ Dd O£ )I8 1961/10/LO N1ODNI1 OE Od SOE X8 4S61 /10/90 N100NI1 9Z Dd SOE X8 0561/10 /1I N1ODNI1 ZS Dd 68 )I13 9561/10/11 N100NI1 L!ZOd 81 318 8;61/91/10 N1ODNI1 LIZ Dd 81 318 9561/61/11 N1ODNI1 6E Od ZZ X8 9;61/41/11 ■100N11 6E Dd ZZ XS 9561/6Z/11 •100M1 049 Dd 98Z 318 1561/91/50 N1ODNI'I 049 Od 98Z X8 9561/E1/11 ■103NI1 SEE Od 4Z X8 9561 51/Z1 N100■I1 Z1 S Od £Z X8 LS61/80 /10 N1ODNI1 14£ Dd SOE X8 1561/91 /S0 N1ODNI1 89Z Od 98 X8 1 561 /91/50 1 89Z Od 98 318 1561/91/;0 N100Nn Z6Z Dd IZ 318 4561/10/60 N1OD■I1 LSZ Dd 96Z X8 8561/10/01 N1ODNI1 ZE Dd ZE X8 8561 /10 /LO N1ODN1 ZE Dd ZZ X8 81761/10/Z0 ■100NI1 ZZ Od ZZ XS 8461 /10/ZO N100NI1 ZZ Dd ZZ X8 Z961/l0/60 N1ODNI1 PEE Od 51 )I8 LS61 /10/90 N1ODNI1 8E1 Dd O£ 318 9561/10/60 N1ODNI1 049 Od 98Z 310 9561/10/60 N1001i11 049 Od 98Z 318 5561 /10 /L0 N1ODNI1 608 Dd IZ X8 4561 /I0/ZO NIODNI1 PEE Dd SI X8 81'61/10/Z0 N1ODNI1 605 Od IZ XS 81761/10/Z0 Al/s1300 9NIQ210)3I1 31VQ 3SV31 b3O 1 aged V-0IISZ0-M VSn 01tSZ0 VSn LOPSZO M VSn EZIOZO M VSn V M VSn V vsn NOISSIINW00 AMH 31.VIS AM DNW OAM A.I.NnOD N1ODNI1 9LZ880 VSn 59LSZ0 vsn O4Z9Z0-A3 VSn Xn .L3 XIItl1N 3 NHOf 919ZZ-0 AM .LS X21VW 8 VIsnDnv Xfl 13 A3'ISfOH 1111AD Xfl 13 NVINV3A 3 3021030 9E111 AM 1S Xfl 13 SINNIDDY4I f INVIIIIM SWIS .LM3N NOSI1V10 2131 13S b£III AM IS LEI I I-0 ANUS SEIII AM IS 3 VSn OLE990 -M VSf1 69E990 VSf1 ;90Z50 VSn 490ZS0 M vsn 196050 VSfI 616660 VSn V•Z898E0-M VSI1 Z898E0 VSn 156EEO VSn £6LtZ0 VSn 0 A3 VSO EIEEZO VSn ?IOSS31 Wd IIE t '66/61/Z1 a op•sanerina8aidwappinA 8 7WnuaplpIIII:I JNIWOAM `SaLL■IIOD 3.LL3'I8I1S (NV N103NII K8'V„ V31IV ONILVdIOILHVd 113ILNOELA alLVQIlOSNOD AO NOISIA311 H.LN3A3S 'V LINIl QN38 H3AIII N332I9 :S.LN3IN331I0y 3AOfV 3H.L 01 ,10311MS SQNV'I QNV S3SV31 SVO QNV '110 3HI 31IV MO TI3M 3SV31 '8 V31IV ONI.LVdIDI.LUIVd 1I3I.LN0113 'IVI.LINI 'V 'I'I3M 3SV3'I 3 «8 V31IV ONI.LVdIDIIIIVd 113.LXV11 Q3.LVQI'IOSNO3 30 NOISIA3II H.LN3.L 8 u8 V,, V31IV ONLLVdIDLL1IV(1 1I3I.LN01I3 Q31VQI10SNO) 30 NOISIA3II H.LN3A3S OMINOAM `SaI,LN11OD QNV 3113'IE3S «Vf, .LIHIHXL 000 z8Z0500000 000 I 8Z0S00000 000 000 000 000 000 000 000 000 000- 808LS00000 000 4ZEOS00000 000 ZZEOS00000 Z00 0ZE0S00000 100 0ZEOS00000 000 81E000000 000 Z I E0S00000 E00-60E0S00000 Z00 100 000 00010E0500000 000 40E0 500000 000 000-10E0500000 000-OOE0500000 000-1'6Z0S0000O 000 000 000 000 000 000 000 000-8LZ0500000 000 '0M 3SV31 IL£ 30Vd IZ)1008 IV 8861 `St 1.Sf10f1V Q3131100311 `LS6I `61 1I38IN333Q CUING IINfl d33Q 391IVHV'I MIXON 'II 'LEI 30Vd IZ NOM IV ONIINOAM `A.LNIlOO 3113'I8f1S NI 8S6I `L AIM Q3a110D31I QNV 8£17 30Vd 8Z NO08 IV ONIINOAM 4 A.LNf1O0 N'IODNI'I NI 8561 A'I11f Q3Q1I0J31I `LS6I `1 3Nflf Q31VQ .LINfl QN381I3ARI N33119 FROM Enron Oil Gas Company 0000050283-000 0000050284 -000 0000050286 -000 0000050290 -000 0000050295 -000 0000050296 -000 0000050297-000 0000050298 -000 0000050299 -000 0000050303 -000 0000050306 -000 0000050307 -000 0000050311 -000 0000057809 -000 PHONE NO. 7136462556 EXHIBIT "A" SUBLETTE AND LINCOLN COUNTIES, WYOMING INSOFAR AND ONLY INSOFAR AS THE ABOVE DESCRIBED OIL AND CAS LEASES COVER AND AFFECT THE LANDS IN THE GREEN RIVER BEND UNIT SEVEN'T'H REVISION OF CONSOLIDATED FRONTIER PARTICIPATING AREA "A -B" MORE PARTICULARLY DESCRIBED BELOW: Township 26 North, Range 112 West. 6 P.M. Section 6: All Section 7: All Section 18: All Section 19: Lot 1, NENW, N2NE Lincoln County, Wyoming Township 27 North, Ranee 112 West, 6'' P.M. Section 4: 8282 Section 5: SESE Section 8: E2E2 Section 9: All Sccti<n117: All Section 18: Lots 3, 4, S2NE, E2SW, SE Section 19: All Section 20; All Section 30: All Section 31: All Sublctte County, Wyoming Township 26 North, Runge 113 West, 6i P.M. Resurvey Lot 37: All (All of Original Sections 1, 12, and 13) Resurvey Lot 38: All (N2N2 of Original Section 24) Resurvey Lot 39: All (S2N2 of Original Section 24) Section 2: All Section 3: lots 1, 8, 9, E2SE, SWSE Section 10; NE, S2 Section 11; All Section 14: All Section 15: All Section 22: N2N2 Section 23: Lot 1, NWNE, N2NW Lincoln County, Wyoming Township 27 North. Rinse 1 West. 0 P.M. Section 27: N13, NENW, 1.12SE, SESE Section 34: E2E2 Sectio0 35: All Section 36: All Sublettc County, Wyoming B. LEASE NO. o0000s0277 -000 0000050278 -000 0000050292 -000 Eland! .•er*OfinakkAisalesalsalamecase VM USA EV- 025440 USA EV -025440 -A USA W- 036054 USA W- 047412 USA W -05751 USA W-05751 -A USA W- 05958 USA W- 059584 -A USA W- 059585 USA EV- 08051 -B STWYO -11141 ANDERSON L MCGINNIS, ET UX USA W- 048781 USA W -059091 TENTH REVISION OF CONSOLIDATED BAXTER PARTICIPATING AREA "A-B" LINCOLN AND SUISLETTE COUNTIES, WYOMING LESSOR USA EV- 023313 USA EV- 023313 -C USA W- 050961 03/01/1955 BK 34 PG 119 SUBLETTE 03/01/1955 BK 34 PG 117 SUBLETTE 04/01/1956 BK 34 PG 115 SUBLETfE 09/01/1958 BK 34 PG 113 SUBLETTE 06/01/1956 B1( 34 PG 07 SUHLETTE 06/01/1951 BK 34 PG 111 SUBLETTE 03/01/1956 BK 33 PG 419 SUBLETTE 03/01/1956 BK 34 PG 109 SUBLETTE 07/01/1947 BK 34 PG 107 SUBLETTE 04/01/1958 BK 34 PG 103 SUBLETTE 05/16/1951 BK 34 PG 99 SUBLETTE 12/26/1956 BK 34 PG 101 SUBLETTE 06/01/1956 BK 41 PG 98 SUBLETTE 08/01/1949 BK 41 PG 100 SUBLETTE Page 2 of 4 LEASE DATE 02/01/1948 02/01/1948 09/01/1962 Apr. 27 2000 09:34AM P2 188 RECORDING COUNTY BK 286 PG 640 OLN BK 286 PG 640 LINCOLN BI( 24 PG 335 LINCOLN 311.31BnS 31-L318nS 31-L318f1S 3 LI.318f1S 3 L31BfIS aLL3'IBns 31L31Bf1S 31L318f1S A,LNfOJ N10DNP1 AINf1OJ 311.31811S 31L318fIS 31L318f1S 1LL31811S 311.3181S 3/13/835 3.LL3'1EMS 31.131811S 311.318f1S N10JN11 N10JN11 N10DN11 N10DN11 Z£1 Dd 68 71B 0561/10/10 68L Dd 88 NEI Z561 /10/90 68 Dd 68 7IB L461 /I0 /L0 Z£1 Dd 68 NEI 0561/10/£0 Z£1 Dd 68 718 056I /i0 /10 68L Dd 88 718 061 /10/90 ZI1 Dd 68 N13 6E61/91/01 9L Dd 68 7IB 0461/10/10 DNIfHO33H 3.LV4 3SV31 ZLZ Dd 1Z 71B 1561/91/50 LIZ Dd 81 718 9S61/10 /£0 LIZ Od 81 718 9561/10/£0 6E Dd ZZ 718 1561/10/90 ZE Dd ZE 718 5561 /10 /EO ZZ Dd ZZ 7IB 4561/10/50 ZZ Dd ZZ 71B P561 /10 /50 4EE OA SI 718 4561/10/50 PEE Dd 51 718 4561/10/50 ESE Od 61 71B 9561/10/11 EPS Od SE 718 8561/91/10 6E1 Dd ZZ 71B 1 561/91/50 049 Od 98Z 718 8461 /10/Z0 1 JO E 38sd W96 VS11 60ZZZO-A3 VS11 08L840 M VS11 1619Z0 VSn 464M0-A\ VSfl £649520 -M VSfl 8 VSfl 40684 M VS11 1OSS31 Wd IIE i'66 /Plat Dop t redspilluopputgvelvanualApurnl 000 000 000 I 0500000 000 000 5£10500000 000 0001E10500000 000 'ON 3SV31 JNIWOAM `AINf1O3 311318f1S V311V °V IINf1 d33Q 3911VHV'I HfllON :M013H 03HINDS3Q A1NV1f1JLLNVd 3110W SQNV1 3HL S1J3AAV QNY S1113A0D 3SV31 SVO (NV 110 Q3HIlIDS313 3AOSV 3H1. SV NV3OSNI A1NO QNV NVAOSNI Z6Z Dd IZ 718 4561/10/60 3 A3 VSfl 914IQ21OJ31I MLVQ 3SY31 HOSS31 8ulwo,CM `,ClunoD uloaull MN$M :41 uoroas 'W'd,9'lsaMEll *Z 1 41 10 14 9Z cINsu#A01 INM 41-44 BZID 'I'I3M 3SV3i 14111 AM IS V VSfl 485650 VS11 V VS11 V 0415Z0 VSfI V 0145Z0 VS11 0145Z0 VS11 LO45Z0 M VS11 V VS11 Xn 13 X11VYV 3 NHOf 949ZZ AM .LS 4E11 l 0 AM LS 590Z50 VS11 ONITAIOXM `SaI.LN9OD N IODNII'I QAIv a,Lia'InriS 6 8 T 44V,, 1IfIHXL 000 ON 3SV31 'II Sulwo CM'Munoj aualgnS 3SMN `3SZS `ZMZ3 '4 `E 'Z slot :61 uoilaaS ZI 11 '8 L '9 `S `Z `1 510101 ualidu sl Imp ianli uaalo ay1 ;o paq ay1 ;o uoluod ley* pue `3NMN `3NMS `3SZM `ZMZ3 `ZI '1 I '01 `6 '8 'L `9 `S `4 `E 't 1 s1o1 :1E uollaas o1 ueuedu sl le mini uaaJ a o a a o uoluod 1e u¢ 8 Pug u o s1o1 41 H D 4 paq 413 41 P 3N3N `ZMZ3 `Z3ZM `8 `L `9 S 4 `Z `l s1 :Of 0!1005 111'd m 9 `1saM Z 11 aaUell `41 LZ 0!4suMOL SulwoAM 'dlunoD aualgnS ZMZ3 `Z3 :9E uollaas W'd t 'IsoM E11 aliuell vot LZ dlysuMol Sulwo,(M ',(luno3 uloaur i 91 m uelidu sl ley(1antg uaaiD 2111 ;o paq aql ;o uoltiod lay* pus MS3N `3NMS 'MN3S '6 '9 `5 `17'E `Z I 101 :9 uollaas •yi•d e 9 `lsaM Z! 1 aNueg `4uoN 9Z d!ysu0ol Sulwo,(M `,Cluno3 uloaull (ZI uollaas dan ns laul8u0 dllauuo; seM lid 1/1 110110) L£ 101 ,Canmsa)l ;o E/1 alppliN algwlxoiddV a111 ;o MNZ3 `3SMN `31%1 Pug u0110aS Aan.tns leul9u0 dpauuo; sem tied vi ply/A) LE 101 damnsaJl ;o £/l yuoN alew►xwddV 2111 ;o MNMN 'ZMZ3 `Z3 'W'd h 9 1saM E1I 3Nue11 '41101%19Z QlysuMOl :M0138 Q3HINDS3Q A1NV1f10I1.11Vd 31101 µH V3HV ONI.LVd13I.L11Vd 1131XVH Q3.LVQI'IOSNO3 30 NOISIA3U HIN31 IINf1 QN3S 113AI11 N33N9 3H1. NI SONV13H.L LIMN" QNV 113A03 S3SV31 SVO QNY 110 033110SMQ 3AORV 3111 SV 11VAOSNI A1NO QNV NVAOSN1 000 000 000 000 000 000 000 000 000 000 000 000 80E0500000 000 EXHIBIT "A" SUBLETTE AND LINCOLN COUNTIES, WYOMING 0000050140 -000 ST WY 0 -847 06/16/1936 BK 89 PG 370 SUBLETTE 0000050141 -000 USA EV- 09561 -A 06/20/1932 BK 89 PG 65 SUBLETTE 0000050142 -000 USA EV- 021978 01/01/1940 BK 89 PG 119 SUBLETTE 0000050143 -000 USA EV -07555 01/01/1940 BK 89 PG 70 SUBLETTE 0000050144 -000 USA EV- 07671 -A 12/29/1939 BK 89 PG 125 SUBLETTE 0000050145 -000 USA EV- 07671 -B 12/29/1939 BK 89 PG 125 SUBLETTE 0000050147 -000 USA W -48907 01/01/1940 BK 89 PG 76 SUBLETTE INSOFAR AND ONLY INSOFAR AS THE ABOVE DESCRIBED OIL AND GAS LEASES COVER AND AFFECT THE LANDS IN THE NORTH LABARGE DEEP UNIT INITIAL FRONTIER PARTICIPATING AREA MORE PARTICULARLY DESCRIBED BELOW: Township 27 North, Range 113 West, 6 P.M. Section 4: Lots 2, 3, 4, SWNE, S2NW, SW, W2SE Section 5: Lot 1, S2NE, S2 Section 8: Ali Section 9: W2E2, W2 Section 16: All Section 17: NE, E2NW, NESW, SE Section 20: NE Section 21: N2N2 Sublette County, Wyoming Township 28 North, Range 113 West, 6 P.M. Section 32: Lot 6, NESE Section 33: Lots 1, 2, 3, 4, NE, S2NW, N2S2 Section 34: Lot 1, W2NW, NWSW Sublette County, Wyoming B. LEASE WELL LEASE NO. LESSOR LEASE DATE RECORDING COUNTY 0000050134 000 USA W 0256493 INSOFAR AND ONLY INSOFAR AS THE ABOVE DESCRIBED OIL AND GAS LEASE COVERS AND AFFECTS THE LANDS MORE PARTICULARLY DESCRIBED BELOW: NLB 36-33 Well Township 28 North, Range 113 West, 6 P.M. Section 33: NWSE Sublette County, Wyoming (Aland leaau. me 12/14/99, 2:31 PM Page 4 of 4 06/01/1947 BK 88 PG 789 SUBLETTE 190 MZII N9Z 9 E'01 aalxag 00Z080Z£Z06b 100000EE6IZ0 90 g# 11E1110 MEII N9Z ZI LE .1.01 aaaxag 008bLOZ£Z06b 10000085L610 ZI 11#f1g210 MEI 1 N9Z I LE IO'I aa3Xeg OOLILOZEZ06b 100000L5L610 10-6 g# f113210 ME11 N9Z I LE 101 aapxag OOL£LOZEZ06b 10000095L610 I0 11# f1g210 MEII N9Z I LE WI aalxag 008ELOZEZ06b 100000S5L610 10 El#f113210 MEII N9Z ZZ 3N3N aahuoad 00L180ZEZ0617 I00000E0bIZO ZZ flg2ID MEI1 N9Z 01 3S3S aahuoad 00£6LOZEZ06b 1000005900Z0 01 f1g210 MEII N9Z S I 3N3S aahuoad 008180ZEZ06b I00000Z0b I Z0 51 I# flEDIO WI N9Z 81 b.1,01 aahuoad 000890ZEZ0617 100000925600 81 lg21D ME11 N9Z b 3NMS aahuoad 0008LOZEZ0617 100000958610 171 11E1110 MEII N9Z EI MNMS a2l1uoad OOLLLOZEZ06b 100000558610 E1 flg21D ME11 N9Z 01 3S3N 12►2uoad 0086LOZ£Z06b 100000b900Z0 01 f113210 MEII N9Z 01 3■I3S aatluoa,d 0099LOZ£Z06b 1000001758610 0I MZII N9Z 81 3•MS aahuoad 001180ZEZ0617 1000001017120 81 flg21O MZII N9Z 81 Zi01 aahuoad 008Z80ZEZ06b I0000000bIZ0 8I #fla110 MZ I I N9Z 81 MN3N aahuoad 005I80ZEZ0617 10000066E1Z0 81 #f1g21D MZII N9Z 81 MN3M aahuoad 00LLbOZEZ06b 100000109600 8I 178 flg11O MZ1 I N9Z 9 MN3S aalxeg 00ZLb0ZEZ0617 200000665600 90 flg21D MEI I N9Z ZI 3N3N 123xag 0010170ZEZ06b E00000565600 Z1 f1g21O ME1 1 N9Z ET MSMN aahuoad 0066£OZEZ06b 1000001765600 E1 f113210 MEI 1 N9Z El 3NMN aahuoad 0000b0ZEZ06b 100000E65600 E1 f1112I0 MEII N9Z 171 3N3N aahuoad 00L6£0ZEZ0617 100000Z65600 171 flg210 MEI I N9Z 1 LE .1.01 aaixag 001EZ50EZ06b Z00000655600 10 f1g2IO MEII N9Z VI MN3N aalxag 0Z9150EZ06b Z00000L55600 171 f122IO DNHI dA&1 DaS tit b/t lwalul aulanpoJ J xaquinu Idd aaguinx ll oa awvisi'riaM T6T 3o T a�8a u!uionM 4uno3 u!o3u!l 181 ;!q!ux3 s .,c,c0S0 WELLNAME EOGR Number API Number Producing Interval 1/41/4 S C TWP RGE GRB 49 -19 009561000002 490350530100 Baxter SESE 19 27N 112W GRB 50 -30 009563000002 490352005400 Baxter LOT 3 30 27N 112W GRB 66 -17 009580000001 490352062100 Frontier SWNE 17 27N 112W GRB B 19 -19 021932000001 490352115700 Baxter LOT 2 19 27N 112W GRBU 3 -31 009543000002 490350502400 Baxter NWSE 31 27N 112W GRBU 6 -30 009573000002 490350518400 Baxter SWSE 30 27N 112W GRBU 29 -30 009541000002 490350527900 Baxter NENW 30 27N 112W GRBU 38 -36 009550000002 490350516200 Baxter SENE 36 27N 113 W GRBU 39A -31 009551000002 490350508100 Baxter SENW 31 27N 112W GRBU 68 -30 009583000002 490352053400 Baxter NESW 30 27N 112W GRBU 69 -19 009584000002 490352053500 Baxter NENW 19 27N 112W GRBU 70 -19 009586000002 490352054100 Baxter NESW 19 27N 112W GRBU 74 -31 009590000003 490352057300 Baxter E2SW 31 27N 112W GRBU 75 -31 009591000002 490352057700 Baxter LOT 2 31 27N 112W GRBU 98 -27 001521000003 490352107600 Frontier 1 NWNE 27 27N 113W GRBU 99 -27 009616000003 490352097100 Frontier NENE 27 27N 113W GRBU #100 -35 009520000002 490352097400 Frontier 1 NWNW 35 27N 113W GRBU #B 4 -36 019753000001 490352111200 Baxter NESW 36 27N 113W GRBU #B 5 -36 019754000001 490352111100 Baxter NESE 36 27N 113W GRBU #B 11 -30 021396000001 490352114300 Baxter LOT 2 30 27N 112W GRBU #B 13 -30 021397000001 490352114900 Baxter SESW 30 27N 112W GRBU #B 14 -31 021398000001 490352114200 Baxter LOT 3 31 27N 112W GRBU #B 18 -19 021730000001 490352115100 Baxter LOT 4 19 27N 112W NLB 36 -33 004655000003 490352082000 Baxter NWSE 33 28N 113W NLBU #27 -17 004646000002 490352048400 Frontier 1 NENW 17 27N 113W NLBU #30 -16 004649000002 490352076700 Frontier 1 NESE 16 27N 113W NLBU #33 -17 004652000002 490352082200 Frontier 1 NESW 17 27N 113W NLBU #34 -21 004653000002 490352080100 Frontier 1 NWNW 21 27N 113W NLBU #35 -34 004654000002 490352083400 Frontier 1 SWNW 34 28N 113W NLBU #36 -33 004655000002 490352082000 Frontier 1 SWNE 33 28N 113W NLBU #38 -08 004657000002 490352083200 Frontier 1 NWNW 8 27N 113W NLBU #39 -17 004658000002 490352083100 Frontier 1 NENE 17 27N 113W NLBU #40 -33 001578000002 490352103200 Frontier 1 NENE 33 28N 113W NLBU #44 -34 004663000002 490352096500 Frontier 1 SWSW 34 28N 113W NLBU #45 -33 004664000002 490352096700 Frontier 1 LOT 3 33 28N 113W NLBU #46 -33 004665000002 490352098300 Frontier 1 NWNE 33 28N 113W NLBU #48 -04 004666000002 490352097200 Frontier 1 NWSE 4 27N 113W NLBU #49 -09 004667000002 490352097300 Frontier 1 NWNE 9 27N 113W NLBU #51 -16 019808000002 490352111800 Frontier 1 NENE 16 27N 113W NLBU #52 -16 001541000002 490352104000 Frontier 1 NWSE 16 27N 113W NLBU #53 -21 001542000002 490352105900 Frontier 1 NENW 21 27N 113W NLBU #54 -20 001543000002 490352108400 Frontier 1 SWNE 20 27N 113W NLBU #56 -17 004670000002 490352098700 Frontier 1 SENW 17 27N 113W TGS Exhibit 'B' Sublette County, Wyoming Page 2 of 3 192 WELLNAME EOGR Number API Number Producing Interval 114_114 SEC TWP RGE NLBU #57 -33 001544000001 490352108300 Frontier 1 LOT 1 33 28N 113W NLBU #58 -04 022094000001 490352116200 Frontier 1 NWNW 4 27N 113W NLBU #59 -09 001079000002 490352099700 Frontier 1 NWNW 9 27N 113W NLBU #61 -16 022077000002 490352116000 Frontier 1 NENW 16 27N 113W NLBU #65 -33 022079000001 490352116600 Frontier 1 SWSE 33 27N 113W NLBU #66 -04 022096000001 490352116100 Frontier 1 NESW 4 27N 113W TGS Exhibit 'B' Sublette County, Wyoming Page 3 of 3 193