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NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY 
REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY 
INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED 
FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR 
DRIVER'S LICENSE NUMBER. 

STATE OF TEXAS 

KNOW BY ALL MEN THESE PRESENTS: 

COUNTY OF TARRANT 

Villages of Fairfield Neighborhood Association (VFNA), North Cravens Community Group (NCCG) & 

Harold Patterson Community Association 

NO SURFACE USE OIL AND GAS LEASE 

This NO SURFACE USE OIL AND GAS LEASE ("LEASE") is made as of .the V day of /f/v, 7 2008 (the 

"Effective Date") by and between Ujuii 7 P^/ei au£ v-fe fafy W. facet 

("Lessor,"' whether one or more), whose address is 

fMC Ui/ifo.U ArLtfbn 7> , and 

Dale Property Services, LLC., ("Lessee," whether one or more), whose address is 2100 Ross Avenue, Suite 1870, LB-9, Dallas, TX 
75201 . Lessor and Lessee are sometimes collectively referred to in this Lease as the "Parties." 

1. Leased Premises. Lessor, in consideration of a cash bonus in hand paid by Lessee, the royalties herein provided, and the 
covenants, agreements and obligations of Lessee herein contained, and subject to the conditions and limitations hereinafter set forth, 
hereby leases and lets, exclusively unto Lessee, for the purpose of exploring, drilling for, producing, and marketing oil and gas, the 
land in Tarrant County, Texas, described in Exhibit A attached hereto and incorporated herein by reference (and referred to herein as 
"Said Land," the "Property," or the "Leased Premises"). The Leased Premises shall include all strips and gores, streets, easements, 
highways and alleyways adjacent thereto. Lessor agrees to execute at Lessee's request any additional or supplemental instruments 
reasonably necessary for a more complete or accurate description of the leased premises. For the purpose of determining the amount 
of any shut-in royalties hereunder, the number of gross acres specified above shall be deemed correct, whether actually more or less. 

2. Term . Subject to the other provisions contained herein, this Lease shall be for a term of thirty-six (36) months from the date 
hereof (the "primary term 1 '), and for as long thereafter as oil or gas or other substances covered hereby are produced in paying 
quantities from the Leased Premises or from lands pooled therewith, or this Lease is otherwise maintained in effect pursuant to the 
provisions hereof. 

3. Option Clause . Notwithstanding anything to the contrary herein, Lessee is hereby granted the exclusive option, to be exercised 
prior to the date which this Lease or any portion thereof would expire in accordance with its terms and provisions, of extending this 
Lease for an additional period of two (2) years as to all or any portion of the acreage of the Leased Premises. The only action required 
by Lessee to exercise this option being payment to Lessor of an additional consideration of the sum equal to the original cash bonus 
paid to Lessor as a bonus for signing the Lease (prior to the expiration of the primary term), which payment shall cover the entire two 
(2) year extended primary term. Should this option be exercised as herein provided, it shall be considered for all purposes as though 
this Lease originally provided for a primary term of five (5) years. If this Lease is extended as to only a portion of the acreage then 
covered thereby, Lessee shall designate such portion by a recordable instrument, 

4. Minerals Covered . For purpose of this Lease, "oil and gas" means oil, gas and other liquid and other gaseous hydrocarbons and 
their constituent elements produced through a well bore. "Oil includes all condensate, distillate, and other liquid and gaseous 
hydrocarbons produced through a well bore. "Gas includes helium, carbon dioxide and other commercial gases, as well as 
hydrocarbon gases. Expressly excluded from this are lignite, coal, sulfur and other like minerals. Lessee shall have no rights to water 
in, on, or under lands of Lessor. 

5. Royalty . Royalties on oil, gas and other substances produced and saved hereunder shall be paid by Lessee to Lessor as follows: (a) 
for oil and other liquid hydrocarbons separated at Lessee's separator facilities, the royalty shall be twenty five percent (25%) of such 
production, to be delivered at Lessee's option to Lessor at the wellhead or to Lessor's credit at the oil/gas purchaser's transportation 
facilities, provided that Lessee shall have the continuing right to purchase such production at the wellhead market price then prevailing 
in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; and (b) 
for gas (including casinghead gas) and all other substances covered hereby, the royalty shall be twenty five percent (25%) of lie 
proceeds realized by Lessee from the sale thereof, computed at the point of sale, provided that Lessee shall have the continuing right 
to purchase such production at the prevailing wellhead market price paid for production of similar quality in the same field (or if there 
is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) pursuant to 
comparable purchase contracts entered into on the same or nearest preceding date as the date on which Lessee commences its 
purchases hereunder. 

Royalties on oil, gas and other substances produced and saved hereunder which are processed in a processing plant in which Lessee, 
or an affiliate of Lessee, has a direct or indirect interest, shall be calculated based upon the market value of the products so produced. 
Similarly, on oil, gas and other substance produced and saved hereunder which are sold to Lessee, or an affiliate of Lessee, royalties 
shall be paid based upon the market value of the products so produced. Notwithstanding anything to the contrary herein, in no event 
shall anv of Lessor's royalty bear anv part of the costs of production or any post-production costs , including costs of lifting, gathering 
dehydration, compression, separation, delivery, transportation, manufacture, processing, treating or marketing, or for construction, 
operation or depreciation of any plant or other facility or equipment for processing or treating oil or gas produced from the leased 
premises or lands pooled therewith. It is agreed between the Lessor and Lessee that, notwithstanding any language herein to the 
contrary, all oil, gas or other proceeds accruing to the Lessor under this lease or by state law shall be without deduction for the cost of 
producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and 



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other products produced hereunder to transform the product into marketable form; however, reasonable costs incurred on an 
unaffiliated interstate or intrastate gas pipeline which result in enhancing the value of the marketable oil, gas or other products to 
receive a better price may be deducted from Lessor's share of production so long as they are based on Lessee's actual cost of such 
enhancements and such costs are shared on a pro-rata basis with Lessee based upon each party's share of production. In no event shall 
Lessor receive a price that is less than, or more than, the price received by Lessee. In no event shall Lessor receive a price less than 
Lessee in sales to non-affiliates. It is in the intent of the parties that die provisions of this section are to be fully effective and 
enforceable and are not to be construed as "surplusage" under the principles set form in Heritage Resources v . NationsBank. 939 

5. W.2d 118 (Tex 1997). 

As used herein, "affiliate" means (i) a corporation, joint venture, partnership or other entity that owns more than ten percent (10%) of 
the outstanding voting interest of Lessee or in which Lessee owns more man ten percent (10%) of the outstanding voting interest; or 
(ii) a corporation, joint venture, partnership or other entity in which, together with Lessee more than ten percent (10%) of the 
outstanding voting interest of both the Lessee and the other corporation, joint venture partnership or other entity is owned or 
controlled by the same person or group of persons. 

Lessee must disburse or cause to be disbursed to Lessor its royalty on production from a particular well not later than one hundred 
twenty (120) days after the end of the month following first delivery of gas from the well into the pipeline. Thereafter, Lessee must 
disburse or cause to be disbursed to Lessor by the last day of each month its royalty on production for which Lessee received payment 
in the preceding month, but in no event shall royalty be paid more than sixty (60) days after the last day of the month of production. If 
not paid when due, Lessor's royalty shall bear interest at die maximum lawful rate from due date until paid, which amount Lessee 
agrees to pay. Acceptance by Lessor of royalties that are past due shall not act as a waiver or estoppel of its right to receive interest 
due thereon unless Lessor expressly so provides in writing signed by Lessor. 

The receipt by Lessee, or Lessee's operator, from a purchaser or a pipeline company of proceeds of production for distribution to 
Lessor will not result in Lessee, or Lessee's operator, acquiring legal or equitable title to those proceeds, but Lessee, or Lessee's 
operator, will at all times hold the proceeds in trust for the benefit of Lessor. Notwithstanding the insolvency, bankruptcy, or other 
business failure of a purchaser of production from Said Land or pipeline company transporting production from Said Land, 
Lessee will remain liable for payment to Lessor for, and agrees to pay Lessor all royalties due Lessor together with interest if not 
timely paid. Lessor retains the right to terminate the Lease for failure to pay royalties, after a period of written notice and opportunity 
to cure which shall not exceed sixty (60) days. 

Gas produced from Said Land or pooled unit that Said Land is included therewith shall not be commingled with gas produced from 
any other lands prior to the point where the gas produced from this Lease passes through the meter which will measure the gas for 
calculating the payment made by the purchaser of gas production. 

6. Shut-in Royalty . If at the end of the primary term or any rime thereafter one or more wells on the leased premises or lands pooled 
therewith are capable of producing oil or gas or other substances covered hereby in paying quantities, but such well or wells are either 
shut-in or production therefrom is not being sold by Lessee, such well or wells shall nevertheless be deemed to be producing in paying 
quantities for the purpose of maintaining this Lease. A well that has been drilled but not traced shall be deemed incapable of 
producing in paying quantities. If for a period of ninety (90) consecutive days such well or wells are shut-in or production therefrom 
is not being sold by Lessee, then Lessee shall pay a quarterly shut-in royalty of One Hundred Dollars ($100.00) per acre to Lessor 
then covered by this Lease on or before the end of said ninety (90) day period and thereafter on or before each anniversary of the end 
of said ninety (90) day period while the well or wells are shut-in or production therefrom is not being sold by Lessee; provided, 
however, that if this Lease is otherwise being maintained by operations, or if production is being sold by Lessee. Notwithstanding 
anything to the contrary herein, it is expressly understood and agreed that after the expiration of the primary term, Lessee shall not 
have the right to continue this Lease in force by payment of shut-in royalty for more than one single period of up to two consecutive 
years. 

7. Payments , All shut-in or other royalty payments under this Lease shall be paid or tendered to Lessor at the address in Exhibit A 
attached hereto, or at such address or to Lessor's credit at such depository institution as Lessor may provide written notice of from 
time to time. All payments or tenders may be made by check or electronic transfer. 

8. Continuous Drilling Obligations . If Lessee drills a well which is incapable of producing in paying quantities (a "dry hole") on the 
Leased Premises or lands pooled therewith, or if all production (whether or not in paying quantities) permanently ceases from any 
cause, including a revision of unit boundaries pursuant to the provisions of Section 9 or the action of any governmental authority, then 
in the event this Lease is not otherwise being maintained in force it shall nevertheless remain in force if Lessee commences production 
for reworking an existing well or for drilling an additional well or for otherwise obtaining or restoring production on the Leased 
Premises or lands pooled therewith within ninety (90) days after completion of production on such dry hole or within ninety (90) days 
after such cessation of all production. If at the end of the primary term, or at any time thereafter, this Lease is not otherwise being 
maintained in force but Lessee is then engaged in drilling, reworking or any other production reasonably calculated to obtain or restore 
production therefrom, this Lease shall remain in force so long as any one or more of such operations are prosecuted with no cessation 
of more than ninety (90) consecutive days, and if any such operations results in the production of oil or gas or other substances 
covered hereby, as long thereafter as there is production in paying quantities from the Leased Premises or lands pooled therewith. 
After completion of a well capable of producing in paying quantities hereunder, Lessee shall drill such additional wells on the Leased 
Premises or lands pooled therewith as a reasonably prudent operator would drill under the same or similar circumstances (a) to 
develop the Leased Premises as to formations then capable of producing in paying quantities on; the Leased Premises or lands pooled 
therewith, or (b) to protect the Leased Premises from uncompensated drainage by any well or wells located on other lands not pooled 
therewith. There shall be no covenant to drill exploratory wells or any additional wells except as expressly provided herein. 

9. Pooling . Lessee shall have the right but not the obligation to pool all of the Leased Premises or interests therein with any other 
lands or interests, and as to any or all substances covered by this lease, either before or after the commencement of production, 
whenever Lessee deems it necessary or proper to do so in order to prudently develop or operate the Leased Premises, whether or not 
similar pooling authority exists with respect to such other lands or interests; provided, however, that the entire Leased Premises 
covered by this Lease, shall be included in any unit created pursuant to the pooling authority granted herein. 

The unit formed by such pooling for an oil well which is not a horizontal completion shall not exceed eighty (80) acres plus a 
maximum acreage tolerance of ten percent (10%) and for a gas well or a horizontal completion shall not exceed six hundred forty 



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(640) acres plus a maximum acreage tolerance often percent (10%). For the purpose of the foregoing, the terms "oil well" and "gas 
well" shall have the meanings prescribed by applicable law or the appropriate governmental authority, or if no definition is so 
prescribed, "oil well" means a well with an initial gas-oil ratio of less than 100,000 cubic feet per barrel and "gas well" means a well 
with an initial gas-oil ratio of 100,000 cubic feet or more per barrel, based on a 24-hour production test conducted under normal 
producing conditions using standard lease separator facilities or equivalent testing equipment and "horizontal completion" means a 
well in which the horizontal component of the gross interval in the reservoir exceeds the vertical component thereof. In exercising its 
pooling rights hereunder, within ninety (90) days of first production, Lessee shall file of record a written declaration describing the 
unit and stating the effective date of pooling which may be retroactive to first production. In the event Lessor's acreage is included in 
a well, all of Lessor's acreage shall be included. Production, drilling or reworking operations anywhere on a unit which includes the 
Leased Premises shall be treated as if it were production, drilling or reworking operations on the Leased Premises, except that the 
production on which Lessor's royalty is calculated shall be that proportion of the total unit production which the mineral acres covered 
by this Lease and included in the unit bears to the total number of mineral acres included in the unit. 

Pooling in one or more instances shall not exhaust Lessee's pooling rights hereunder, and Lessee shall have the recurring right but not 
the obligation to revise any unit formed hereunder by expansion or contraction or both, either before or after commencement of 
production, in order to conform to the well spacing or density pattern prescribed or permitted by the governmental authority having 
jurisdiction, or to conform to any productive acreage determination made by such governmental authority. In making such a revision, 
Lessee shall file of record a written declaration describing the revised unit and stating the effective date of revision. If the Leased 
Premises are included in or excluded from the unit by virtue of such revision, the proportion of unit production on which royalties are 
payable hereunder shall thereafter be adjusted accordingly. In the absence of production in paying quantities from a unit, or upon 
permanent cessation thereof, Lessee may terminate the unit by filing of record a written declaration describing the unit and stating the 
date of termination. Pooling hereunder shall not constitute a cross-conveyance of interests. 

10. Assignment . The interest of either Lessor or Lessee hereunder may be assigned, devised or otherwise transferred in whole or in 
part, by area and/or by depth or zone, and the rights and obligations of the parties hereunder shall extend to their respective heirs, 
devisees, executors, administrators, successors and assigns; provided, however, if Lessee is to assign any part of this Lease, it shall 
give written notice and a copy of any assignment to the Lessor within sixty (60) days of assignment with the exception of assignments 
being made to Lessee, its officers, directors, and/or affiliates. No change in Lessor's ownership shall have the effect of reducing the 
rights or enlarging the obligations of Lessee hereunder, and no change in ownership shall be binding on Lessee until thirty (30) days 
after Lessee has been furnished the original or certified or duly authenticated copies of the documents establishing such change of 
ownership to the reasonable satisfaction of Lessee or until Lessor has satisfied the notification requirements contained in Lessee's 
usual form of division order. If Lessee transfers its interest hereunder, no assignment by Lessee will relieve Lessee of any liability, 
before or after the assignment, and Assignee is jointly and severally liable with Lessee for all Lease obligations, 

11. Release and Vertical Pugh Clause . Lessee may, at any time and from time to time, deliver to Lessor a file of record written 
release of this Lease as to a full or undivided interest in all or any portion of the area covered by this Lease or any depths or zones 
thereunder, and shall thereupon be relieved of all obligations thereafter arising with respect to the interest so released. If Lessee 
releases all or an undivided interest in less than all of the area covered hereby, Lessee's obligation to pay or tender shut-in royalties 
shall be proportionately reduced in accordance with the net acreage interest retained hereunder. In any event, upon termination of this 
Lease, Lessee its successors or assigns shall deliver to Lessor a recorded release within sixty (60) days as to such portion or portions 
of this Lease which have terminated under the terms of mis Lease. Subject to the terms of paragraph 2 of this Lease, upon the 
expiration of the primary term of this Lease, upon the expiration of any extension or renewal of the primary term, or after cessation of 
production as provided herein, whichever occurs last, this Lease shall terminate as to all rights lying one hundred feet (100*) below 
either (1) the deepest depth drilled in any well drilled on the Leased Premises or on lands pooled therewith or (2) the stratigraphic 
equivalent of the base of the deepest formation producing or capable of producing in any well drilled on the Leased Premises or on 
lands pooled therewith,, whichever is the deepest (as determined by well logs); provided, however, if Lessee is then engaged in 
production on the Leased Premises or on lands pooled therewith, this Lease shall remain in full force and effect as to all depths so long 
as no more than ninety (90) days elapse between production. 

12. No Surface Use . Notwithstanding anything to the contrary in this Lease, Lessee shall not enter upon the surface of, cross over, 
place any structure or building upon or conduct any operations (including but not limited to geophysical/seismic operations) on the 
Leased Premises or within six hundred feet (600') of any structure on the Leased Premises. Lessee shall only develop the Leased 
Premises by pooling, as provided herein, or by directional or horizontal drilling commenced from a surface location on other lands. 
Notwithstanding anything to the contrary in the Lease, Lessee has no right to drill horizontally, vertically, or at an angle under the 
Leased Premises at any depth that is less than three hundred (300) feet below the surface. Lessee has no right to transmit or transport 
gas under the surface of the Property at any depth that is less than three hundred (300) feet below the surface of the Property. If 
Lessee can acquire consent from at least 70% of those property owners within six hundred (600) feet of said operations, then it shall 
be deemed that 100% of those within six hundred (600) feet of said operations have consented to allow Lessee to conduct operation 
closer than six hundred (600) feet of any structure on the Leased premises. In no event shall Lessee conduct operations within three 
hundred (300) feet of any structure on Leased premises. The terms and provisions of this paragraph shall be controlling over any 
contrary provisions located elsewhere in this Lease, 

13. Traffic. Lessee understands the residential streets within the area surrounding the Leased Premises boundaries are neither 
designed nor built to carry commercial traffic. Lessee agrees to instruct its employees and contractors to avoid using said streets, 
except for contractors doing business with Lessors. None of Lessee's employees or contractors shall be permitted to use the 
residential streets for parking or access to any drill site. 

14. Noise . Noise levels associated with Lessee's operations related to the drilling, completion and reworking of wells shall be kept to 
a reasonable minimum, taking into consideration reasonably available equipment and technology in the oil and gas industry, the level 
and nature of development and surface use elsewhere in the vicinity of Lessee's drill sites and the fact Lessee's operations are being 
conducted in or near an urban residential area. If Lessee utilizes any non-electric-powered equipment in its operations, Lessee shall 
take reasonable steps to muffle the sound therefrom by installing a noise suppression muffler or like equipment. 

15. Regulatory Requirements and Force Majeure . Lessee's obligations under this Lease, whether express or implied, shall be subject 
to all applicable laws, rules, regulations and orders of any governmental authority having jurisdiction, including environmental 
regulations, setback requirements, restrictions on the drilling and production of wells, and the price of oil, gas and other substances 
covered hereby. To the extent any such laws, rules, regulations or orders are less restrictive than the terms of this Lease, this Lease 



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shall control. The breach of this paragraph will be considered a material breach of the Lease. When drilling, reworking, production or 
other operations are prevented or delayed by such laws, rules, regulations or orders, or by inability to obtain necessary permits, 
equipment, services, material, water, electricity, fuel, access or easements, or by fire, flood, adverse weather conditions, war, sabotage, 
rebellion, insurrection, riot, strike or labor disputes, or by inability to obtain a satisfactory market for production or failure of 
purchases or carriers to take or transport such production, or by any other cause not reasonably within Lessee's control, this Lease 
shall not terminate because of such prevention or delay. Lessee shall not be liable for breach of any express or implied covenants of 
this Lease when drilling, production or other operations are so prevented, delayed or interrupted. Lessee shall take all reasonable 
actions to remove or end any cause of Force Majeure as soon as reasonably possible. In no even shall this Lease be perpetuated by an 
event of Force Majeure for a period of more than one (1) consecutive year or two (2) years of cumulative time. No obligation of 
Lessee to pay money that has accrued and was due before the Force Majeure event occurred under this Lease will be excused or 
delayed by reason of such Force Majeure event Lessee will notify in writing Lessor, at the address identified in Section 1, unless 
notice of another address has been provided in writing, when Force Majeure goes into effect. All such notices shall be made by 
registered or certified mail, return receipt requested, unless another means of delivery is expressly stated. 

16. Environmental Compliance . Lessee shall use the highest degree of care and all reasonable safeguards to prevent contamination or 
pollution of any environmental medium, including soil, surface waters, groundwater, sediments, and surface or subsurface strata, 
ambient air or any other environmental medium in, on, or under, Said Lands or lands pooled therewith, by any waste, pollutant, or 
contaminant. Lessee shall not bring or permit to remain on Said Lands or lands pooled therewith any asbestos containing materials, 
explosives, toxic materials, or substances regulated as hazardous wastes, hazardous materials, hazardous substances (as the term 
"Hazardous Substance" is defined in the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 

42 U.S. C. Sections 9601, et seq.) or toxic substances under any federal, state or local law or regulation ("Hazardous Material"), 
except ordinary products commonly used in connection with oil and gas exploration and development operations and stored in the 
usual manner and quantities. LESSEE'S VIOLATION OF THE FOREGOING PROHIBITION SHALL CONSTITUTE A 
MATERIAL BREACH AND DEFAULT HEREUNDER AND LESSEE SHALL INDEMNIFY, HOLD HARMLESS AND 
DEFEND LESSOR, ITS AGENTS, EMPLOYEES, TENANTS, GUESTS, INVITEES AND THEIR RESPECTIVE SUCCESSORS 
AND ASSIGNS FROM AND AGAINST ANY CLAIMS, DAMAGES, JUDGEMENTS, PENALTIES, LIABILITIES, AND COSTS 
(INCLUDING REASONABLE ATTORNEYS FEES AND COURT COSTS) CAUSED BY OR ARISING OUT OF (1) A 
VIOLATION OF THE FOREGOING PROHIBITION OR (2) THE PRESENCE, RELEASE OR DISPOSAL OF ANY 
HAZARDOUS MATERIALS ON, UNDER OR ABOUT SAID LANDS OR LANDS POOLED THEREWITH DURING LESSEE'S 
OCCUPANCY OR CONTRO OF SAME. LESSEE SHALL CLEAN UP, REMOVE, REMEDY, AND REPAIR ANY SOIL OR 
GROUND WATER CONTAMINATION AND DAMAGE CAUSED BY THE PRESENCE OR RELEASE OF ANY HAZARDOUS 
MATERIALS IN, ON, UNDER OR ABOUT SAID LANDS OR LANDS POOLED THEREWITH DURING LESSEE'S 
OCCUPANCY OF SAME IN CONFORMANCE WITH THE REQUIRMENTS OF APPLICABLE LAW. THIS 
INDEMNIFICATION AND ASSUMPTION SHALL APPLY, BUT IS NOT LIMITED TO, LIABILITY FOR RESPONSE 
ACTIONS UNDERTAKEN PURSUANT TO CERCLA OR ANY OTHER ENVIRONMENTAL LAW OR REGULATION. 
LESSEE SHALL IMMEDIATELY GIVE LESSOR WRITTEN NOTICE OF ANY BREACH OR SUSPECTED BREACH OF THIS 
PARAGRAPH, UPON LEARNING OF THE PRESENCE OF ANY HAZARDOUS MATERIALS, OR UPON RECEIVING A 
NOTICE PERTAINING TO HAZARDOUS MATERIALS WHICH MAY AFFECT SAID LANDS OR LANDS POOLED 
THEREWITH. THE OBLIGATIONS OF LESSEE HEREUNDER SHALL SURVIVE THE EXPIRATION OR EARLIER 
TERMINATION FOR ANY REASON, OF THIS LEASE. 

17. Indemnity. LESSEE AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS LESSOR, AND LESSOR'S 
REPRESENTATIVES, SUCCESSORS, AND ASSIGNS AGAINST ALL EXPENSES, CLAIMS, DEMANDS, LIABILITIES, AND 
CAUSES OF ACTION OF ANY NATURE FOR INJURY TO OR DEATH OF PERSONS AND LOSS OR DAMAGE TO 
PROPERTY, INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEY'S FEES, EXPERT FEES, AND COURT 
COSTS, CAUSED BY LESSEE'S OPERATIONS ON SAID LAND OR LANDS POOLED THEREWITH OR LESSEE'S 
MARKETING OF PRODUCTION FROM THE LAND OR ANY VIOLATION OF ANY ENVIRONMENTAL REQUIREMENTS 
BY LESSEE. AS USED IN THIS PARAGRAPH, THE TERM "LESSEE" INCLUDES LESSEE, ITS AGENTS, EMPLOYEES, 
SERVANTS, CONTRACTORS, AND ANY OTHER PERSON ACTING UNDER ITS DIRECTION AND CONTROL, AND ITS 
INDEPENDENT CONTRACTORS. 

1 8. Notices . All notices required or contemplated by this Lease shall be directed to the party being notified at the address identified in 
Section 1, unless notice of another address has been provided in writing. All such notices shall be made by registered or certified 
mail, return receipt requested, unless another means of delivery is expressly stated. 

19. No Warranty of Title . Lessor makes no warranty of any kind with respect to title to the surface or mineral estate in the Leased 
Premises or any portion of or interest therein. AU warranties mat might arise by common law or by statute, including but not limited 
to Section 5.023 of the Texas Property Code (or its successor), are excluded. By acceptance of this Lease, Lessee acknowledges that it 
has been given full opportunity to investigate and has conducted sufficient investigation to satisfy itself as to the title to the Leased 
Premises. Lessee assumes all risk of title feilures. 

20. Curing Defaults . Should Lessee at any time fail to comply with its obligations hereunder regarding construction, maintenance, or 
repair, Lessor shall have the right, after giving thirty (30) days prior written notice to Lessee, to do or have done whatever is necessary 
to fulfill the obligations to its satisfaction, and Lessee shall be liable to Lessor for the reasonable and necessary expenses thus incurred 
by Lessor, to be paid within thirty (30) days after Lessor shall have furnished Lessee an itemized written statement of the expenses. 

21. Venue and Legal Fees . Venue for any dispute arising under this Lease shall lie in Tarrant County, Texas, where all obligations 
under this Lease are performable. At any time that any obligation of the Lessee to make a payment shall not be complied with in 
accordance with the terms of the Lease, it is agreed and understood that Lessee will pay to Lessor interest thereon at the highest lawful 
rate allowed to be charged to Lessee by Lessor under the then existing Statutes of the State of Texas. In addition, in the event of the 
breach of any provision of the Lease, Lessee shall pay to Lessor all costs and expenses reasonably incurred including reasonable 
attorneys' fees and expenses, expert fees and expenses, and costs of court incurred by Lessor for the enforcement of the provisions of 
this Lease. It is agreed and understood that time is of the essence in the performing of each responsibility under the terms of this 
Lease. 

22. Records . During the primary term of this Lease and for as long as oil and gas is produced therefrom, and for a period of one (1) 
year thereafter Lessee shall keep complete and accurate records of all its operations relating to or affecting the Leased Premises, and 



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the results thereof, including but not limited to: all geophysical, geological, geochemical and paleontological data (if any), and 
interpretations or analyses thereof; all land surveys, title opinions and title curative material; ail drilling, coring, logging, testing and 
completion records; all production records showing (he total gross production, the quantities saved, sold and used, the disposition 
thereof, and the sales prices or values thereof; all production sales contracts; and such other records and as may be proper for the 
settlement of accounts between Lessor and Lessee or to determine the respective rights and obligations of Said Parties hereunder. 
Lessee shall make all of such records and data available to Lessor or Lessor's designee for examination and copying in Lessee's 
offices at all reasonable times, as well as all other records, reports, notes, charts, graphs, maps, contracts, documents, papers, and other 
material in the possession of or under the control of the Lessee and pertaining to the Leased Premises. 

23. Division Orders . It is agreed that neither the Lease nor any of its terms or provisions shall be altered, amended, extended, or 
ratified by any division order or transfer order executed by Lessor, Lessor's successors, agents, or assigns. If Lessee shall require the 
execution of a division order for payment of royalty payable under the Lease, then such form of division order permitted for Lessee's 
use shall be such form promulgated by the State of Texas and set forth in Section 91 .402(d) of the Texas Natural Resources Code as 
amended from time to time. Any amendment, alteration, extension or ratification of this Lease, or of any term or provision of this 
Lease, shall be made only by an instrument clearly denominating its purpose and effect, describing the specific terms or provisions 
affected and the proposed change or modification hereof, and executed by the parry against whom any such amendment, alteration, 
extension or ratification is sought to be enforced. Any purported amendment, alteration, extension or ratification not so drafted shall 
be of no force or effect. 

24. Subordination Agreement Fees . Notwithstanding anything contained herein to the contrary, neither Lessee nor Lessee's assigns 
shall ever require a subordination, partial release of lien, release of lien, consent or other documentation from any lender or tenant of 
Lessor mat has a lien on said land as a condition to Lessor receiving the agreed signing bonus or any subsequent royalties payment if 
the Land is not used as a drill site location and/or located directly above the actual Wellbore. However, Lessor will cooperate with any 
reasonable effort of Lessee to obtain same from Lessor's lender on behalf of Lessor. 

25. Miscellaneous . This Lease is entered into in the State of Texas and shall be construed, interpreted and enforced in accordance 
with the laws of the State of Texas without reference to choice-of-law rules. Should any of the provisions herein be determined to be 
invalid by a court of competent jurisdiction, it is agreed that this shall not affect the enforceability of any other provision herein and 
that the parties shall attempt in good faith to renegotiate that provision so determined to be invalid to effectuate the purpose of and to 
conform to the law regarding such provision. The section titles appearing in this Lease are for convenience only and shall not by 
themselves determine the construction of mis Lease. This Lease may be executed in one or more counterparts, each of which shall be 
deemed an original, but all of which shall constitute one and the same instrument Singular and plural terms, as well as terms stated in 
the masculine feminine or neuter gender, shall be read to include the other(s) as the context requires to effectuate the full purposes of 
this Lease. 

26. Insurance . Insurance. Lessee, at its own expense, shall maintain a general liability insurance policy (covering bodily injury, 
property damage, and covering its Indemnity obligations under paragraphs 12 and 16 of the lease) in an amount of at least three 
million ($3,000,000.00) dollars combined single limit. Lessee shall also, at its own expense, carry workers compensation insurance as 
required by law. 

"The rights of Lessor under this Lease shall be in addition to, and not in lieu of, all rights Lessor may have as to payment of royalty 
under Texas law, including, without limitation, V.T.C.A. Natural Resources Code 91.401 through 91.405." 



IN WITNESS WHEREOF, this Lease is executed to be effective as of the date first written above, but upon execution shall be binding 
on each signatory and the signatory's heirs, devisees, executors, administrators, successors and assigns, whether or not this Lease has 
been executed by all parties hereinabove named as Lessor. 



[Individual Name/Title] 



[Signature] 




[Individual Name/Title] 



[Signature] 




Page 5 of 7 



ACKNOWLEDGEMENTS 



STATE OF TEXAS 
COUNTY OF TARRANT 

This Instrument was acknowledged before me on 



Peffv X»fi Pucei 



tS*""'",, 


MICHAEL KEITH lEPTHIEN 


m 


Notary Public, State of Texas 




My Commission Expires 




December 06, 2011 



Notary Public, State of Texas 



STATE OF TEXAS 
COUNTY OF TARRANT 

This instrument was acknowledged before me on Aft* I 2/ lCf£ 



->by 



iMxi lit tu/j)i. 




Page 6 of 7 



EXHIBIT A 



Attached to and made a part of the NO SURFACE USE OIL AND GAS LEASE dated 

Af >'</ 2 1 , 2008, between Dale Property Services, LLC, as Lessee, and 

Lsfiuu J Pur.rb taJ w.te Pefty W, puttk , as Lessor; 

WITNESSETH: 

0.275 acres of land, more or less, being Blk 8 Lot 19 Palos Verdes Addition, an addition to the City 
of Arlington, Tarrant County, Texas, according to the Plat thereof recorded in Volume , 
P a S e ■> P^ at Records, Tarrant County, Texas. 



Page 7 of 7 



DALE RESOURCES LLC 

2100 ROSS AVE STE 1870 LB-9 

DALLAS TX 75201 

Submitter: DALE RESOURCES LLC 



SUZANNE HENDERSON 
TARRANT COUNTY CLERK 
TARRANT COUNTY COURTHOUSE 
100 WEST WEATHERFORD 
FORT WORTH, TX 76196-0401 

DO NOT DESTROY 
WARNING- THIS IS PART OF THE OFFICIAL RECORD. 




$40.00 



ANY PROVISION WHICH RESTRICTS THE SALE, RENTAL OR USE 
OF THE DESCRIBED REAL PROPERTY BECAUSE OF COLOR OR 
RACE IS INVALID AND UNENFORCEABLE UNDER FEDERAL LAW. 




Printed by: MC