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arc fessoe s agents and shill continue depository for all lentils payable herevnder(/ atjlcss of changes in the ownership
of said land or of the right to receive rentals) tla sum of ..FIF.TY..SEVEN .IiU\DRED..TiIIRT] .FOUR. 6 90110.0 dollars
(S... S734...90. ..................... ) which shall maintain this lease in force and cxtc-id for one additional year the time within
which such operations may be eoaurenced. Thereafter, annually and in like manner and upon like pa):•ncnts or tender (all of
which are herein called •'renals"), such operations may be deferred for successive periods of orre )car each during the primary
term. Payments or tenders of rental may be ms -le by mailing cash, check, or draft to Lessor or to tl:c dro:itory bank and the
\ ate of the mailing shall be eonirdctc.l the date of payment. Pi)rr.:ncs or ttr.:crs of renals may be m2c by Lesscc or by any
lxsa.1 or persons on Lesste s behalf, and tray be made jointly to all parties Lessor or to their credit in the depository bans.•
,off such rentals rray be tend; red or aid separately to each owner or to his separate credit. From time to time during the primary
Kim of a) Lessee shall drill acrd abandon a well as being in Lessee s opinion int:pablc of pro'ecing any of sail subsanca
from si land and there is at the time of abandonment no other well so pto lucing, or (b) all production of said substances
shall cease then Lessee may (subject to provisions of paragraph 13 hereof) commence or resume opetatio.%s (as defined in
I.atagrajsh 3 hereof), theprodunion of any of said substances or the payment of delay rental and in such event this lease shall
_ ternstn xt full force and effect as thaaatt there had been no internipc-7 in operldon; production. or rental payments, as the
use-Ruy-be. 1f abandonment tinder (a) above or the cessation of production under (b) above occurs more than six months
before the next ensuing anniversary dace of this lase. Lessee shall have until such anniversary date in which to commence
of resume pPeration; prods-cdon or rental psymrnts. if such ab:ndonmrne or caution of produciron occurs less than six
months before the next ensuing mnivctsary date of this lease, the Lessee shall have until the second ensuing anniversary date
rodicthan or rensl payments; provided. Lessee shall not have the tight under
in which to cotrunence or resume operation; p
this provision to extend the p6maty term of ith s lease.
3. Operations as used in paragraphs 2 and 4 hereof means drilling, redrillingg,. deepening, any preparatory work for
doing any of the fore¢o&hg if commenced in good faith and prosecuted with reasonable diligence eonpledon w abandonrxnt
wroth., testing or flowing or other work to determine productivity, secondary Moyery operations or the exercise of any other
right ¢uvea Lessee in ppauuagraph 1 hncof for the purpose of obtaining or resuming production in paying quantities (as do-
fined'or paragraph 2 hereof). Such operations are continuous when no more than six months cbesm between the date on
which production ceased or any of soedh operations ceased, whichever is the later, and the dace on which further operations are
begin or production is commend or resumed, and this lease shall remain in full force and effect during each and every six-
month period. Production in such paying Tiantities may be followed or preceded by continuous operations from time to time
for the purpose of keepiaa this Lease in force in accordance with paragraph 2 hereof. Operations commenced or conducted on
Or in aha }ands for a wellll bottomed or to be bottomed in said land shat be deemed, lot all purposes of this lease. operations
ooaunmad or conducted in said had.
6. Eu othaw•ise provided herein, royalty payments shall be computed and paid monthly. Lessee shall furnish to
Lessor Monro ly written sutenxssts of the production credited o- allocated to said land during the preceding calendar month.
Royalties wrespect to production credited or allocated to said land during any calendar month shall be paid not Iter than
be last day
ay of the next succeeding calendar rnonds. if the amount estimated to be payable to any party hereto for cq•akies is
,est shag las dotlaes (S10), or if the amount of a1 produced don not '�uscify shipmenn on a monthly Basi; then Lessee may.
upon prior written notice to such ppaarip, make suck royalty payments and written statement; on a quarterly. semi-annual or an-
aatd basis„ as it elect:; provided. however. all sums theretofore accru and unpaid shall be paid as lase once each calmdac
yae. Royalty payments may be made or tendered to Lessor or to tessa's credit in the depository named in paragraph 4.
7. Lessee shall not be liable to Lessor for damages to any 041 and gas n-Av it underlying said land or for the loss of
Said sibtantes therein a therefrom resulting from its operations hereunder unless such damage or loss is caused by Lessee's
pons negli or willful misconduct. Lessee shall have the tight at any time during the term hereof or within a reasonable
rimcrawreattter to terncw•e from said land all of Lessee's properires and fixture; including the right to draw and remove all
IL If. during or after the primary term hereof, a well is drilled into adjacent property, whether by Lessee or by another
Pant. and the Lessor has no Menest in the productions therefrom and the production interval of the well is located within
three hundred thirty feet of the exterior boundasits of the land at that time utchtded in this Lease and is completed as a
producer of a7 or gas in eommetcui gwntiries and causes the migration of a7 or as from said land, then Lessee shall
(provided it is not then dulling a has rat theretofore drilled an offset well in said land) within ninety, (90) dais from the
dace the owner of.such wen eommitam marketing production cherefron% either commence, operations for the drilling of an
offset well in said land or surrender and terminate this lease, in the manner provided in pangnph 13 hereof. as to a portion
of said had. the dimahsioas of which said portion shall be equal to the distance of such well from said exterior boundary.
Suet surrender shall be limited to the zone or zones being drained by the well on the adjacent prop:rejr. Lessee shall never be
=ircd to drill (or surrender in lieu thereof) any offset well which, in Lessees opinion. would be incapable of producinga '
Said substances m quantities sufficient to yield a return which, after deducting the value of ail said substances to be dtaksed
Inco said lnhd from such mise or cases by existing wells therein, would exceed the dnlling and operating caeca of such offset
Oren.
V. 711e rights of Lessor and Lessee hereunder racy be transferred, in whole or in part and as to any substance or zone -
No ehanr in owacrship of Lessor's interest, however accomplished, shall be binding on Lessee until Lessor has famished
Lessee with writam notice of such thinggee end thea only with respect to pa thereafter made; such notice to consist of
original or eenified copies of an recorded ittscrumecha, documents and omer narsuryto establish a complem
dein of record tick from Lessor, and written auuuctions from Lessor and Leaves transferee &wring the disbursement of
Cmy papnenes which may be made thereafter. No other kind of notice whether actual or constructive shall be binding an
.rate and in the absence of such notice Lessee may make psymena•petcisdy as if no change had occurred. No preserve or,
future division t f Lessoi s ON enhtp as to d,lfeteot portions ew parcels of said land shall operate to entsrge the obligations
or daainish the rights of Lessee and an of Lessees opendons. particularly as to the drilling and loation of wells and the
weasurei,WA of production. may be conducted without regard to anr Poch division. If all or any part of this lease is assigned,
so ace or omissien of any leasehold owner shall affect the rights or liabilities ofao� other such owner. except that operations
im or production from any part of said land. whether assigned or ooc, shall scree col cep the .,is. lease in force n though res
aasignincnt had been made, and all payments to Lessor, except royalty on actual production. shall be apportioned between
assignor sad assignee in peoportic-m to acreage.
M If any rental or royalty is nes paid when due, Lessor shall notify Lessee thereof in writing and this lease shall mac
traminaw unless die Lessee fails to make such payment within fifteen (13) days after receipt of such written naive• provided,
however, that if these is a dis�ue as to the amount due and all anmid,
disputcd aourm are pasaid 13 -day pant shall be
extended until S days afar sudn dispne is scaled by final court donne arbitration or agreanast. if Lessee fails to make such
payasent &fret receipt of such notice within said Period or such extension thereof). turn this lease shah terminate as to the
portant car portions thereof as to which Lessee is in default.
In the erne Lessor considers that Lessee has mot complied with any other co mant, condition or obliption hereunt(m
either express or implied. Lessor shall notify Lessee.' in wriring, sming out specifically is what srspttcs it 6 claimed that
Leasee has breached this lease, and Lessee shah nes be liable to Lessor for any dama¢es caused by any breach of a covenan4
coondition, or omption, or implied, occurring more than sixty (Go) days prior to the recce by Lessee of th ; afore-
said written notice of such�h. The rece;pe of such notice by Lesser and the lapse of sixty (60rdays thereafter without
Lessee meeting or commencing to mea the alleged breaches shall be a condition precedent to any action by Lessor for any
enure hereunder. Neither the service of said notice nor the doing of any cans by Lessee armed to meet all or any of the altered
breaches shall be d6emed an admission or pon that Lessee has failed to perform all of its obUllateons hcrcun cr.
This lease shall never be forfeited or cancelled in whole or in part, either during Or after the primary term hereof. for failure
of Lessee to perform any of its express or implied covenarhrs, condiion; or obligations until it shall have first been finally
judiciail determined that such failure exists, and any decree of termination, cancellation or forfeiture shall be in the a:cerna-
tive andyshall provide for termination, cancellation, or forfeiture unless Lessee complin with the covehaats, conditions, or
obli &tions breached within a reasonable titre to be determined by the Court. No default in the performance of any condition
or ligation hereof shall affect the rights of Lessee her -under with respect to any drilling or pr011uciig %ell or wells in regard
P to which Lessee is not in defauit, to^crher with a parcel of forty acres surrounding rich such oil well then co npincd or bring
drilled and a parcel of six hundred forty acres surrounding each such gas well then completed or bring drilled
11. If Lessee is prevented or hindered from drilling or conducting other operations for the purpose of obtaining or
restoring production or from producing said substances by fire. Rood, storm, act of God, or any cause bey—c! Lessees control
(including but not limited to governmental law, order or regulation, labor disputes, war, inability to secure men, materials or
transportation, inability to secure a market for gas, or an adverse claim to Lessors title when Lessor has been notified pursuant
to paragraph 14 hereof). then the performance of any such operations or the production of said substances shall be suspended
during the period of such prevention or hindrance. if such suspension occurs during the primary tecta, the payment of delay
rental during such suspension shall be "cused-and the primary term shall be extended for a period of time equal to the period
It such suspension and this lease shall remain in full force and effect during such period of suspension and any such extexnsion
of thes;maty term. Lessee may commence or resume the p;i •ment or tender of rentals in accordance with paragraph 4 hereof
&free the period of suspension by pitying or tendering -xitlun 60 days after the period of suspension the proportionate part
of the rental for the rental year remaining after such period of suspension. If such suspension occurs after the primary tree %
chis lease shall remain in full force and effect during such suspension and for a reasonable rime thereafter provided that within
such time following the period of suspension Lessee diligently commences or resnroes operations or the production of said
substatsees. Lessees obligation to pay royalty on actual production shall never be suspended under this paragraph. Whenever
Lessee would otherwise be required to surrender any of slid land as an alternative to the petfotmance so suspended, then
so long as such performance is supended by this paragraph Lessee shall net be required to surrender any portion of said land.
If the permission or approval of any governmental agency is necessary before drilling operations may be co+nmenced in
said land. than if such permission or approval has barn lied for a Last 30 days prior co else date upon which such opQeerra-
&w mux be commenced under the terms hereof. the obl,garion to commence such operations shall be suspended unci! thirty
(30; days after the governmental permit is granted or approval given, or if such permit or approval is denied initially, then
se, long as Lessee in good firth appeals from such eenial or conducts further proceedings -in an arternpc to secure such permit
or approves) and thirty days thereafter.
12. For the consideration paid at the time of execution of this agreement and without any additional consideration to
be id therefor. except as provided below, Lessor hereby grants to Lessee. its successors and assigns, the sole and exclusive
rig h9 r; of way and casement to drill into and through said land by means of a well or wells drilled from the surface of
lands tic than said land. and the sole and exclusive right to abandon or repair. teddIl, deepen, maintain, rework and oper-
ate such well or v6dis for the production of said substances from or the infection of gas, water. air or ocher substances mro
Inds other than said Ind. 'The rights granted in this paragraph shall continue for. and may be exercised at at:; time or from
time to time within. ten (10) years from the date hereof and thereafter as Ion. as Lessee in good faith shall conduct .a. ;hang
operations under the provisions of this Lase or this paragraph. or said substa.hces are produced from wells drilled pursuant
to this Lase or this.pira¢raph. or wells drilled pursuant to this paragraph are used for injection as aforesaidi or the perform-
ance of siny such operations is suspended or deferred for the reasons or causes set forth in paragraph 11 hereof. If Lessee
exercises the rights granted in this paragraph and thereafter .completes' a well dpable of being used for injection or of
producing said substances in quanta ies deemed paying quantities -by Lesser, then Lessee shall within sixty (60) days after
such cornpktion pay Lessor an annual rental computed at the rate of one dollar ($I) per yard of horizontal projection of the
surrey course of that part of the borehole of such well traversing said land; provided. however. that Lessor shall nix be entitled
to receive any rental under the provisions of this paragraph during such times as Lessor is cntitkd to receive loyalty of rentals
under other provis%oas of this lease. Any such rentals #.hall continue until such well is abandoned. Any well drilled under the
ppttovisitaris of this paragraph shall be drilled so that the production or injection intcaal thereof shall lie wholix outside the
boundary of said land and Lessor recognizes and agrees that Lessor has no interest in any such well or wells drilled pursuing
to thisppaaragraph or any production therefrom. if Lessee shall assign to any third party or parties rights granted to Lessee
tender chis paragraph, the rights of Lessee shah not thereby be diminished, but in sorb event both Lessee and its assignee shall
have. hold and enjoy said rights. each independently of the other.
Any surrender or germination under any other provision of this lease shall be effective notwithstanding the feta that
Lessee in and by such surrender or termination reserves the rights granted to Lessee under this ppaarraagraph. and regardless of
surrender or termination, the rights granted under this paragraph shall continue lot the hereinabove stated term.
13. Lessee ma at any time ot tunes within twenty-one (21)' year from the date her without Lessors joinder or
further consent. poo consolidate or unitize this lease and said land in whole or in ppaart or as to any zone, with other lands.
mineral interests, and kases in the vicinity thereof so as to constitute a unit or units wi,eneaer such action in Leuees� j)udgment
is required to comply with Appiicable laws or to promote or encourage the conservation of natural resources of the efficient and
eeonom 1 location and spacing of wells. cycling, pressure -maintenance. repressuring or secondary recovery pr %ams, or to
join is any cooperative or unit plan of development or operation approved 6jr State or Federal authbritia. 7ht stat of shape
of any such unit may be changed at any time or times within twenty-one (21) years from the date hereof without Lessor's
joinder or further consent to permit more a frcknt and economical operation. to include acreage believed to be productive and
Cto exclude acreage believed to be unproductive or which is not committed to the unit. but any increase or decrease in Lessors
royalties resulting from any such change in any such unit shall not be retroactive. Any such unit may be established or
changed, and in the absence of production therefrom may be abolished and dissolved, by filing for record an instrument so
declaring, a copy of which shall be delivered to Lessor or to the depository bank. Drilling or ocher operadoos (as defined in
paragraph 3 hereof) in. or ptodection of any one of said substances from, any part of such unit shall be treated and considered
or all purposes of this lease as such operatiot in or suc.% production from said find. Lessee shall allocate to the portion of said
had included in any such unit a fractional part of all production from any part of such unit on the same basis as is provided
in the agreement beruce. LeYsir and others whereby such unit is established or. in the absence of such an Agreement or of a
method of allocation therein. Lessee shall clew one of the following bases: (a) The ratio between the acreage of the portion
of this lease included in such unit and the total of all acreage included in such unit- or (b) 71w ratio betweetn the value. as
estirnated by Lessee. of recoverable production within the portion of this lease included in stash unit and the total value. as
estimated by Lessee. of all recov-etabfe production within such unit. Lessee may change from one of the aforesaid bases to the
Other At any tune or times within 21 years from the date hereof w•;thaat Lessor's further joinder or consent but any increase
or decrease in Lessor's royalty resulting from any such change shall not be retroactive. No offset obligation shall accrue under
this kasc as a result of any well drilled within any such unit.
14. Lessor warrants and agrees to defend clic title to said Land. ne rentals and royAdes hereinabove provided are deter -
mated with retprct to the entire mineral essate, and if Lessor owns a lesser interest, the rentals and rgalties to be paid Lessor
may be reduced proportionately. If the interest of Lessor covered by this lease is subject to any outstanding royalties payable
to another. Such royalties shall be deducted from Lessors royalties herein provided. Lessee shall pay all taxes levied against
Lessees plants, machinery and personal property owned by Lr --see and used for dive ncnt of said Land and ail taxes (except
the agreed share thereof) assessed upon mineral rights or assessed upon or measured by proJuction from or allocated to said
Ind. Lessor shall pay all other taxes asscsscd against said land and the agreed share of taxes assessed upon mineral rights and
assessed upon or mrasured by production from or allocated to said land. Lessee may discharge in whole or in part, on behalf
of Lessor, airy` tax, rnort¢agc err ether lien upon said land, or may redeem the same from any purchaser at any tax sale or
Adjudication. ar�d mayy reunburse itself from any rentals and ro)al6c•s accruing licteunJe•r and shall be subrogateJ to such lien
with the right to enforce same. Lessee shall haee dee right to hold or acquire mineral rights or leases from ;:hers claiming
any interest in any\pa« of said land, and to withhold from Lessor pa)n(nt of rentals and ro)•alties attributable to an)-. interest
so claimed or to any other interest which is subject to adtvrse Crim. Jisrurr nr C.ririt;nn ,n.l.rl,r .►„u t _ .t.._ .. .a
• the ownership of such interni has been deterrrin:d, and Lessee shill not thcrct.l• be held in default of any Cro. i>ron hereof
or to hive dis v.cd Lessors title. When Lessee bcctzrcs swue of any adverse claim to Lessoi s title to said land being asserted
Lessee by another. shall notify Lessor in writing and upon such notification Less:•e shill be excused from drillin; offset or
ocher wells on or producing from said lands until such adverse claim has been f riAly drerrnined.
15. Lessee may at any time or times sutrrudcr this lease or any sone or portion of either dscicof by delivering or mail-
ing a written notice of surrender to Lessor and upon such delivery or mailing Lessee shall be tclicced of all obligations as to
the potties+ sutrendered. and thereafter all rivinetuts to Lesser or to the depository bank rovided herein, except royalties on
actual production, shall be reduced in the sarre proportion that the acteage covered hereby is reducri. If Lessee surrenders
less than;:ll sones in any portion of this kase the serial as to such portion shall not be reduced. Within a reasonable time
after any such surrender. Lessee shah file appropriate surrender instrumcnis for record. in the event this lease is surrendered
or assigned as. to any sone or portion. then so long as this lease shin remain in effect u to any ocher sone or.pottion Lessee
shalt have such t ,hts of way or easements in. under and through the surrendered or assigned sone or portion as shall be
necessary or conseatent for Lessees operations in the retained portion or oche: lands in the vicinity thcreof.
I& If any of said subftances is discovered by Lessee in said land in quantities deemed paying quantities br Lessee, then
Lessee shall keep one string of tools in continuous operation in said land, allowing not more than six months to elapse between
completion or abandonment of the first or an p succeeding .ren and the commencement of operations for the drilling of the
next succeeding well except that if Lessee shall drill in said land a well which in Lessees opinion is not capable of producing
said substances in paying tlWntitics, then Lessee may allow not more than one yesc to elapse after the abandonment of each
such well before eomrnencmg operations for the next succeeding wc1L Lessee shall be given credit for so much of the time
in each six t xwA or one )rest drilling interval as is n' a utilised and such credit may be use.) to extend subsequent drilling
intervals in such manner as Lessee may determine. Lessees obligations tender this paragraph and under paragraph 8 hereof
shirt be fully satisfied when there has been drilled and completed or abandoned the equivalent in number of one well for each
10 acre (or any i 2ior fracthm thereof) of said land then subject to this lease if such discovery was of oil or one well for
welt WO acres (or any majot fraction thereof) of said land then subject to this lease if such discovery urns of gas. provided.
however. that Lessee shall be red to conduct suds continuous -operations in the event of a discovery of gas only if in
Lessee's *?Mion such add tiotat ilting is warranted existing or ted market requirements for such and in the
event of a dtscoretr of oil only if the market price in the Geld lot 0 of h1ce quality or gravity is more than One Dollar per
barrel at the we1L
If both oil and gas are discovered in said land in quantities deemed paging quantities by Lessee. then Lessee shalt dull
the number of wells herein psondtd for an oil discovery moult respect to the portion of said land whish in Lessees opinion
+P is c pabk of producing oil is paying quantities and 'Lessee shall be entitled to retain an of said land for the term hereof.
Lessee span roc be se9uued to but may drill � ore wells in said land than those herein specified.
17. This Lase stall be "Ing upon all who execute it. whether or not they are named in the granting clause hereof
and whether or not all parties named in the granting clause execute this Lase. This lease may be executed in any number of
ownterpsra and for an purposes hereof all of such counterparts shalt be considered as ,x►e lease. All the provisions of this
kale shall inure to the b Gc of and be binding upon the heirs. executors, administrators. successors, and assigns of Lessor
and Lessee
la. The land which is subject to this tern is situated in the County of . ..... ._ ..
State of California. and is described as follows:
SEH EXHIBIT "Ai' ATTACHED HERETO. AND MADE A PART HEREOF
iodudins all accretions thereto and a1t tikes, suear►n, canals. wuecways, d'kes toads. street% stlleys. easements and rights of
way. on. within. or adjoiningg the lands above descttbed and including ail strips or panels of land contiguous, adjacent to
or sdjanirtg the land and owned or claimed br Lessor. For the purpose of. cskuWing any payments based on
setas Lessee. a Lewes option. may act so if said land and its conscintentparids contai...S7.3...49............ acres. whether
cher sctuatlr contain snore or less. This lease shall cover all the interest in u; land now owned u hereafter acquired by Lessor.
IN WITNESS WHEREOF, the parties berm have executed this agreement.
LESSEE: LESSOR:
By ----
STATE OF CALIFORNIA
SL
......C.otmty of._
On this »._. dayof..__ . _ . AD. 19, before roe
a Notary Nbl;c in and for said County and State.
petsoi►a[I� appeared.__....._..._....__.,._....w._...... _
known to toe to be the person_.... wbcse nam--- subscribed to the within instrument, and acknowledged to me
that __..lie. executed the same.
IN WrINESS WHEREOF. I have hereunto sec my hand and affixed my official seal the day and year in this eertifecue
SM above wtitten.
My Commission Expires:
,19..- _ Notary Public its and for said County and State
SUBSURFACE OIL AND GAS LEASE _
Ti1IS AGREEMENT, made and entered into as of the ........ ....... .......... »day of ...........................................................
19.........., between...thr ..C.LTY..OF... LODI............. »...................................................... _.._......... ».............. »............ _.......
...».
. _..
(and all other parties executing this lease orany counterpart hereof) hereinafter called 'Lessor' and
hereinafter called "Lessee. -
1. Lessor, for and in consideration of one dollar and other valuable consideration,receipt and sufficiency of which is
hereby sal noN•lcdged, and of the royalties and agreements of the Lessee herein pprovided, hereby grants, lets and leases exclu.
sively unto Lessee all the land lying more than five hundred (500) feet below the surface, but none of the land lying above
the de•ptlh of five hundred (500) feet below the surface, of the lands specifically described and included in paragraph 18
bereof. which land is hereinafter referred to as "said land;' for the purposes of exploring and prospectsfor (by geological.
aeoph •areal. and all other means whether now known or not), drilling for, pproducing, sav;ng�,. taking and owning al, gas, all
ocher �ydrocatbon% and all other substances produced therewith, collectively hereinafter referred to as "said substances." in,
under or that may be produced from said land, and hereby grants. all rights, privilc¢cs and easements useful or convenient for
Lessee's operations in said land, in adjacent or contiguous bnds. and in other lands an the same vicinity, including, but not Iim-
hed td scabsurface rights of war for drilling,repairing, "tilling. decptning, maintaining, operating, abandoning, reworking
and removing wells in, into and through said find; and the right to drill wells and use Lessees existing wells, including product -
;ng wells. to inject gas, water, air or other substances into said Land. Lessee shall have the right hereunder to conduct operations
by methods now known or unknown which. in Lessees opinion, arc reasonably designed to benefit or facilitate the drilling
for or production of said substances (torn said land. Lessee shall have no r,Zht, without the consent of Lessor in writing being
fust obtained, to drill any well or wells frcxrn the surface of the lands described in para¢raph 18 hereof, or to use said sutfsce.
or that portion of such lands lying above a depth of five hundred (500) feet below said surface. for any put se. Lessee may
bare. or at its ion may obtain, rights in respect to other lands in the vicinity of said land for drill sites Bram which wells
can be slant drilled into said land for the purposes of this lease. Lessee shall have the unrestricted and exclusive right, power
and authority toproduce said substances beneath or recoverable from szid land, and to exercise all ether rights and privileges
herein set forth, by means of any well or wells which are slant drilled from surface drill sites located on such other lands and
the producing intetvals of which are bottomed in said land. The -rights and privilege's granted to Lessee hereunder shall be sole
and exclusive.
2. This lease shall remain in force for a term of years from the date hereof. called "primary term." and
either as long thereafter as an of said substances is•produced from said land in paying quantities (being quantities sufficient
to pay operating costs) or so long as continuous operations (as defined in paragraph 5 hereof) are conducted in said land or
so long as this lease is kept in force under any other provision hereof.
3. The cam "agreed share" as used herein means ......... 116 ................. Royalties to be paid by'Lessee are: (a) on oil.
the value of the :greed share of that produced and saved from said brad. It is mutually agreed that the value shall be the price
currently offered or paid by Lessee for oil of like gravity and qualityy in the same field. The volume of oil upon which royalty
payrrncncs :re based may be determined tither by mnaing and sampling or by tank gats cs. After such mcasurarxnt, all or any
part of the oil may be transported to locations on other lands and.
nd commingled with oil from other lands. Lessee tnay deduct
from tg altlr payments the agreed share of the cost of treating unmerchantable oil produced from said land to render it met.
chartable. the agreed share of the cost of transporting the oil to the treating plant and the a reed share of the cost of disposing
of waste water produced with said substances; nothing herein contained shall be construed as obligating Lessee to treat oil;
(b) on gas including casinghead gar and all gaseous substances produced, saved and sold from said land, the
reed share of
t net proceeds (which shall be the amount realized (tom such sale less corn sling costs) of the gas so sold; €c) on gas not
told but used for any purpose net connected with or incidental to operations rn said land or land pooled or unitized therewith.
the agreed share of the market value at the well of the gas so used. Alt or an part of the gas produced from said land m:F
be transported to locations on other lands and commingled with gas from other lands. Lessee shall meter such transported
gas and such meter readings together with Lessees analysis of gasoline content of gas shall furnish the basis for prorat
I e amount of gasoline to be credited to said land. Lessee shall not be accountable to Lessor for gas lost or used or consumed
ba operations hereunder. Lessee may produce gas from said land or from lands with which said land is pooled or unitized in
accordance with any method of ratable taking at any time or from time to time hereafter generally in effect in any Pool of
Cwhich said Isnd oran portion thereof is a part. In the absence of any such method of ratable taking. Lessee shall produce
from acid land or bra s pooled or unitized therewith a fair and equitable proportion of the quantity of gas which it markets
from lands under lease to it in the pool of which said land is a pan. Lessee sh_11 be obligated to produce only zo much
gas as it may be able to marker at the well or wells. When there is no market for gas at the wells. Lessees obligation to produce
etas shall be suspended; (d) on gasoline extracted from gas produced from said land, the ralue of 49% of the agreed share
of the gasoline credited to said land by Lessee. it is mutually agreed that the value shall be the price currently offered or aid
b Lessee for gasoline of lilac specifications and quality in the same vicinity; (c) on any other substance, the agreed share
o the market value at the well.
For all operations hereunder. Lessee may use. free of royalty, oil, gas or other hydrocarbons and water from said land.
How-e.er. if Lessee shall use in operations hereunder, fuel, power. or other substances not obtained from said land. thea
Lessee shall be entitled to deduct from the amount of the additional royalty accruingg thereby to Lessor the agreed share of the
toss of such substituted fuel. power or other substances; provided, no deduction hereunder shall exceed the amount of such
additional royalty.
When any of said substances net produced from said land are injected into said land or land pooled or unitized therewith.
the initial production thereafter of said substances from any such land shall be free of royalty until the amount of the said
substances produced and saved therefrom shall equal that of said substances injected therein.
4. The consideration expressed in paragraph t covers all rental for the first ........".--.n.».... year(s) of the rimary tem
If drilling operations are not commenced in said land on or before ....... one-_»... cars) from the date her then. subject
to the Provisions of paragraph 15 hereof Lessce shall pay or tender to Lessor or to Lessor s credit in .........
»....»».».......»......._.
»...............»...------------ .......... ............ ......................................... __................ .................. ...... ».................
............._»..Bank a:
..........».»...»..»........... ......... ............ ..... .......................................................... »..».....--•_........».».. (which bank and as successors
RESOLUTION NO. 81-80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LODI, CALIFORNIA, DECLARING ITS INTENTION
TO CALL FOR BIDS FOR A CERTAIN OIL AND GAS
LEASE AND MAKING FINDINGS IN CONNECTION
THEREWITH
The City Council of the City of Lodi, California,
does resolve as follows:
Section 1. - That certain form of Subsurface Oil and
Gas Lease presented to the City Council, with the original
filed in the office of the City Clerk at the Council Meeting
this date, is hereby referred to and by this reference incor-
porated herein.
Section 2. - Pursuant to Section 7058.5 of the Public
Resources Code of the State of California, the City Council
declares that it intends to call for bids for an oil and gas
lease in the form of the lease referred to in Section 1 of
this Resolution. The property to be leased is situated in the
County of San Joaquin, State of California, and is described
as follows:
Portions of Sections 23, 24, 25 and 26, Township
3 North, Range 5 East, Mount Diablo Base and Meridian,
also being described as Assessor's Parcels 055-120-1,
055-120-7, 055-130-4, 055-1-30-13, 055-130-14, 055-130-15t
055-150-11, 055-150-12, 055-150-14, 055-150-15, and
055-150-17. The property is also commonly known as the
ti,.
White Slough Control Plant Property.
For more detailed description, reference
is hereby made to Exhibit "A" appended to proposed
form of Subsurface Oil and Gas Lease, hereinabove
referred to in Section 1 which is on file in the office
of the City Clerk of the City of Lodi. Diagrams of
the subject areas are also on file in the office of the
Lodi City Clerk.
Section 3. - The royalty share payable for oil, gas-,
and other hydrocarbons produced from wells on the leased land
shall be ane -sixth (1/6), to be computed as provided in said
form of lease. The one variable bidding factor upon which
bids shall be received shall be the cash bonus consideration,
including the first year's rental. The minimum rental per year
during the primary term shall be as specified in paragraph 4
of the lease. The term of the lease shall be for a period of
five (5) years and for such longer period (not to exceed 35
years) during which oil, gas and other hydrocarbon substances
shall be produced from the leased land, or lands with which
the leased land may be pooled. Lessor will permit drill sites
only at such locations as may be mutually agreed upon by Lessor
and Lessee.
Section 4. - None of the land described in the form of
lease.hereto has been used, owned, dedicated or acquired as
parks, highways, streets, walks or public playgrounds for park
purposes.
-2-
Section 5. - The bidder shall submit his bid in letter
form -accompanied by a Certified or Cashier's check in the full
amount of the cash bonus consideration, including rental, bid
for the first year. The bid shall set forth the said cash bonus
consideration, and shall indicate bidder's willingness to enter
into a lease in all respects identical to the lease referred to
in Section 1, except for the identity of the Lessee.
Section 6. - Bids for said Agreement of Lease are hereby
invited and shall be received in the office of the City Clerk
located in the City Hall, Lodi, California, until 5:00 p.m. on
Wednesday, the 19th day of August, 1981, and shall be opened
and publicly declared by the Council at 8:00 p.m. on said date.
Section 7. - The City Clerk shall publish this resolution
once a week for four successive weeks in the Lodi clews Sentinel
and Lodi Life and Times, newspapers of general circulation
published and printed in the City and County where the property
is situated.
f
Dated: July 1, 1981
I hereby certify that Resolution No. 81-80 was passed
and adopted by the City Council of the City of Lodi
in a regular meeting held July 1, 1981 by the following
vote:
Ayes: Councilmen - Murphy, Hughes, Pinkerton and
McCarty
Noes: Councilmen - None
Absent: Councilmen - Katnich
4C
ALICE M. REI CHE
City Clerk
-3-
0
EXHIBIT "A"
Portions of Sections 23, 24, 25 and 25, Township 3
North, Mange 5 East, Fount Diablo Base and Meridian, also being
described as Assessor's Parcels 055-120-1, 055-120-7, 055-130-4,
055-130-13, 055-130-14, 055-130-15, 055-150-11, 055-150-120,
055-150-148 055-150-15, and 055-150-17. The property is also
commonly known as the White Slough Control Plant Property.