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HomeMy WebLinkAboutJ.W. BRASHEARS AND ZORA B. BRASHEARS - ROY J. BERRYHILL AND DEANE NEWENHAM - 1948-02-04, M»•A.. ..�, 6� r r _ . AI •e ,:.k...n»a� ».«�� .;:,�.r .<.w .,«+-..«r«+r.; s'RN =..;-.c y d""".N F ^*CC.t+ ^„^:"..'"^J^�w..".c (^^"'n"`. �` ;d,... ,7�i,J(j , o-r•a r,,.�. ..��� r�r w.�•rm.�y,, >� �••—>tiS, «...-s "'+`"l.}'..�.r ry�«'�,.ir« l7'r... � .r.+..�... w.. 4 . .1.: i� +� ` } �4,1?re .,,..aLj�l1�,»..,. .,y...M., .a � M.:w �(r ..•.,i:.+»�.., ..wr, ::+,.4 � � � r-.`r�.,,»rr.�.,,�. .....1i-.,....+.�..,�. ._ .,�..,,...,>:. .n�j.., ..-.. _,` „��, � .,11 ' ..,,.,�q:„W.�:,�.»—. sn�... Tvw+..« :J .�k�r �Vt - r.w«n•.+...p+. � �., �: : �t .Jtt •� �` Ic. iy e� a �� '. � .,.�.+ �.. . . ...n. v..K .hio., rc .M,,.....Fr .r..., H"P*rti�i.�.y.�Q M••.sa+ W �. 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'. rf. -. ... ,,,._ ,..n-..«.+?:.,....U,..ti. ,.. ),�:..»<, ...+dy�., n::w _ M WUIOWB# the City Of Habti> gtan 840ho '4 40114 *ovp*rOIoA# 0�torod Into am 011* 04 GO, 14+ 490 COOV$99 10* 6 ozA tka OmthOstolyXV test 0 toot 8 14 VUWI 314 at Uut ass %On boaaht to per mv tbars0t' V#M*vd*4 in ftok 3w x* 36 ur JA J * W * Bfts saVa Pr'a 5 & RPSO ar'S Vero 4054000 0 #R 1.0444 iug roi road in book 1675 p�&$ 393La afftaial r000rdto of ora a uk�tyt aallfor3 la; wAd to AOy Jr ftrx*ybJJ1 aad Desav, Nowo0hsout Maid assig ratW- UK rvoodgd In Book 1?0:L0 'paO affidial rats Orobs* Countr# CaI;LfP t, Otwat tho prodUbt4oz of oil txt6w tha voll 0% Stijl c=tiaua tha proftotion of as veil aAd to pad' tho vay*aty as rogUiriod IW paragrap IYA bf dais orUIW ioxes, uhieh ?p ' de s for 1% O-Mg Y'latr of 00 000 pot *t ' PA44 �# tow ths 4ioU owAor a.Od Opa t k t Is 'tea do'sirs' of tho p,avtidl� rota *at Waal bol 4304t uod QA pr404" , -,*Ad tpat uto •Oe r&OLUOA 100 V01U iA order t� sl tioul, tho► r0a t -of D"JAO K'aVOIn1*0 to *O(Mot to° r010c 11tift *044 di o 0a more prt 4u*tj,4a thwraOwt a r4 other;, soot *YA "' Imble cousldtr+atiano r0 ip� xh ah Is torah ths Qity of *vmtiutt*n oh doos bra ' wa v* past* of the Y yw�ra 4, .e-+=p"M.iw.'pK� IYna � l IiliW�a1M16 r i A,..... n, .w^n.�r, ...,y.,.-,- ....-,,.,. __ r ^....,{.r. ...,...b.. .. ra:-.,., .,..�. r._ : ,s. "K+'.. .._. ,. z• .nr" _... .. .. .. .-...k*Nli n "Yaty of $5000 ?or month *a proud od prift,"a , 274 of x*AA origi l boa a, MWU4 the noftths *ommotag rimer AV%41,0 ; to and IL-ilwd VAO monthAt AIRra�� 19 " 0 , It It further Wood thata all * � t4las 434 oanat" � tons of aatd laaaoi> Oar USA the$$ tot toy' P*Xsgrupb 1.74 thoteatq shail r+ in in bra . Tarot and Ottgat* , �1 vmoro tho Otty eat Huntington B,ox US aausid its corporate niiw *JDA seal to "ba laoreuAto amn"Od 'by its Xeyor and 00' o stist by its Cit y r +� C�+oroto dint' +►imrd+rdt�_ WA DO*Aw So w boy" mot their h d s ;WO MY 01VADITIXOTOX BVAIX# �uapa orpra s t M� w. F 1 i WHERW9 the City of RUntington H'tA449 a ratuAolpal corporations entered into as Oil and Gas Imaso covering hot u ',' the Sontbwostorly 15 feet Of Lot 8 in I3Iogk 32.4 of Huntington Heaahe as per mp thereof regord•d 14 Boa 3ar p*ts 36 of MIV.collanaaous Flaps, rmaaords of Orangg (-o atrt Callfornir�aa wherein, zo We Unshears and Zors Be Brashooms were 14240e+81 acid r � leaser boirts, r000rW -- ..&'Book X6759 page 391 f official r000rds of Ormset County, California; and WVASI tIm interest of losaaees therein was aaolg d =?, { b 'N'oy, J. Berman and Deane Newenhamy said assigtaout bring d r000rdodr in Book 1701# page 533, official records of Or"go Countyo Calif orn ,i and f WOMB, the .prob4ion of oil from tuo well on said !, A pfoparty has .dimminidhed and it is a6t sounomically feasible to continue the prod"tion of said well and to pay the royalty as requtrokl,, by paragraph I? a of geoid original aal. least $ which provides for a aaa<tni.*m rcVy°alty of $50*00 por montha WOMAAt the partnership of goy jo V*Mr hill and Draane Nowell was dissolved 6A -T� 10, 19 M Deaant Newozibas is e the Sala sea' and opereatoo hereof) and WIMAUst it is tholdsdre of tho parties hereto that r said wa�;:L be contimad on parsadU0tj*A o-and that said NewoMaea to. � con4 tior- said well In order" to secure add:.tiouneal. proftstion r NOW THA - 01%, in coAstdorati.on of the pro ses a Y the Agreement of Deaue iTilvohh a to atte mot to recondition j*id i well rind secure more prod Lion th+arefvmj &W other good and yal.' u tblo considereatioxg xtotipt of which is horoby aaknovIodged, the I . Ci tr of Huntington Bwaoh deeraa her*IW waive payments of the sib �` I Into voyaltr of #50(*00" per moulth to ptw-W$A*& la piravaph l7sk of swid artflml le"Of 6wlU'9 tho -vontha 0000040Ag Vlth'APZx$-lO 19% to 4nd ill oluding tho *00th Ormae-,'', 1956 It Is Aqthor agrood that *'ll Ohor lurm amutoo lon$ of x4id leasti ot:wr th*-WO*'v*'4"t to in ivm%17A ig ftll. ftrao ar4 , affsti 14 WITOSS Wi lwvv the Coy of Huntington Diu% hAs O*Ussd Us eovporatc� a mmIV s )uw sz4 so; I to be bo*sWito amod it May &-nd attostod by lt-� uM Duns to twvq.,'.sst their ha,-'10 thlO 'Glow tel III 2 th* MY Of AUVWX00A 11OUCE19 4 muu"GIVAA, 4 joat oldtorod ilato,in oil 0410 toga 00ydrios. 5 and US i��Ourly 15 feet 6f Lot, 8 in,`J *42 314 *aiA9#0A 6: BO40'40 jag V*:j map therwt r000rded In SCOX 7 jazoOUA Iftp;* r4000j*do or om-id PoMtVj W sh#aiand Zora Brailiears, *40rlb 1400a00sv S&14 le 001 Uift 9 r000vdid in S6ok 16?51, PA90 301s of fi*Ul V1,94OWS Of Oso 10 and Wgf"$v "t Intoroot of lost*6a tIzor*In WO assimed "oo 12 Ror ► Serrykill ant Deene Neverha%* said &S.01ta"At '40146 to" 13 torded ft, -Book 17019. pa$* 533o Offt*Ul V660rds Of Or age COMO$ 14 C:allfornii; and tUe :production, of oil atom. th.0 W*1111,On said 16 property` I Ma diminished and U iS 0.0t *40uMdG0'117 r0asibls U 171, continue prodUOtift Of SoU Vell and to pay the, At 18' required paragraph, 174 of said original ltast,t vhi0h. pr ov%* a by 19 for a matt um rq4lty of 00*00 Per MoUthi and 20 wH@FXA$j. '�Jtt is s desire of the parties he"to tbAt said 21 wall be contihAW! In ptod'P.11tton god that 13o:r 14 SOVhIll and JDA&no Nevenba". 6andition said sill to att-ompt to gle0wo w4dt%lobal productign theretroms 24 ._�Ow' , TRBWiDRzt in oonsUeration of the, pr6%:L$*t,&Ad tho', 2 . 5 agreeirAnt, of Rol Jo Sevryhill and Deww Nov to stUrApt to -26 aona,,tion said well and se re mor produatioA, thsrefrozi*, and othej'r good so Vajuabjo voa#jot vf MAch is heraby do*6 '. voby wallve aoXww1adods the Citj Of, Huutin$t6b Ch he .29 Paymonit's of the MIA100 roya).jjr og, $5C,000 per amth as prov+IOS4 30 in Pax4ftPh 174 of said OVISinal 10&sst ftrIA9 0A X00%$ QQ* 'U th cing Vt. gkraLt 19%4 nx the mouth of February, man 044 32 (6 ;r i 20 WHEREAS, it is the dosire,;of the parties hereto that said 21 well be contihued in production and that Roy J. BerryYill and Deane- 22 Newenham condition said well to ,attempt to secure additional pro- 23duction therefromo 24 NOw TUREFORE, in consideration of the premises and the 95 agreement of Roy Z. Ber*—A.1 and Dfpane Newenham to attempt to 2e, condition said well and secure more pradue, Lion therefrom, axed 2' other good and valuable cona!Aoiq ;#on, reo�)ipt of which is hereby d- acknowledged, the City of HuntingtonBeach does hereby waive 29 E 3 Wfi,.M.,S, the City of Huntington Beach, a, municl�al corpora 4 tion, entered into an oil and Gas Lease covering Lot 6 and.the 5 Southwesterly, l5 fcet of Lot S in Blc:ck 31- , of _ iuttirton Pooh a as per map thereof recorded in BoolC 3 page' 36 of Miscellaneous 7 Maps., records of 'Orange County, California, wherein, J. W. Hrashears 8 and Zora B..Brashears were lessees, said lease being recorded in 9 Book 1675 page 391, official records of Orange County, California- 10 and 1.Z I& EREAS, the interest of lessees therein was as :, gne.d to 1114 Itoy J. Berryhil.l and Deane Newenham-9 said assignment being recorded 10 in gook 1701, page '533,d.official records of Orange'Countyy 14 California; and -15 WHEREAS, the production Qf oil from the well, on said 1 property has diminshed, and it is not economically feasible tcl continue the production of saidwell and to pay the royalty a4 $ required by paragraph 17a of said orifinal lease, which provider fog a minimum royalty cify?.00 per month; and., ;payment. of ` " .e► minimum royalty of S-550400 per month as ,provided 30 in paragr�,' 17a of said originrl lease, during and for the months 31 of March., April, May-, June, July and August of 11953, 11 It is fuxthar agreed that all other, 'ter!ns and oonditions 10 *W. 0 44 �VIat.ti, 4R.LVYrLr.' ?'fr OIL AIN, i3 CAS LEAS TWO ASN111130T, m.lei and entered into ,.0r!fk..day of, ... ?Abn=,Y........ ...... ..... 19.660,...... by and between ... .... .... .. ,, .................a .......... ST, ...C� ..i Aft..NCH,...a..M�aaicipal...GnrPo�ai�,as�....... ........ N....r.......'r......Y....r.rr.....k.... ..................rr.. .rrr ..............rr..rr • .r...,.r«..............................ru.. ♦..r.«.r...............4.....w.......................... J r».party of the first part, herein stylod °`Lessor," and ..... a1.a... Ws...r 43AW&..16.A&AA=JL... $126A=tw IMIALb nd.. and.. 9� Ifs .................................................. party of the second part, herein styled "Lessee." ; WETllIESUMN: That for and in consideration lawful money of the United .8tates of America, to the Lessor paid, and of other valuable considerations, the receipt of all of which in hereby acknowledged, and in eonsideration of the covenumta and agreements hereinafter contained by the Lessee to be kept and performed, the Lessor has granted, leased; let and demised, and by these presents does grant, lease, let-and'demise unto the Lessas, ita grantees, successors and assigns, the land and premises hereinafter described, with tho sole and exelualve right to tke Lessee to drill for, product, extract, take and rermove oil, gas, asph&tu m and other hydrocarbons (and water without cost for its operations) from, and to atore the same upon, said land clpring the term hereinafter provided, With the right of entry thereon at all times for said purposes, send to eonstmet, usa, maintain, erect, repair and replace thereon end to remove therefrom all pipe lanes, Wephone aamd telegraph lines, tanks, machinery, buildings and other structures Idek the Lessee may desire in carrying on its busiiuesat and operations on said land, or adjoining or neighboring prozaises operated by L-aflee, with the further right to the Lessee or any of ita subsidiaries to erect, maintain, operate and remove a plant with all necessary appurtenances, for the extraction of gasoline from gas produced from said land and/or other premises in the vicinity of said land, including all rights necessary or convenient thereto, together with rights -of -way for passage over, upon and across, and ingress and egress to and from, said land, for any or all of the above mentioned purposes. The possession by the Lessee of said land shall be sole sand exclusive, excepting only that the Lessor reserves the right to occupy said, band or to lease the same * x agricultural, horticultural, or grazing uses, which uses s aall be e,VAed on subject to, and with no interference with, the rights or operations of the Lessee hereunder. The land which is the subject of this lease is situated in the County oL.._.__A)XJ gAL ____��_... ...._...- ....- . --....--., State of California, and is described ae, follows, to -wit: Lot Six (6) and the SouthwesteriLy Fifteen (151) feet of Lot. Bight (8) in Block Three Hundred and Fourteen (ills) of Huntington Beach, Book 3 Page 36 of Miscellaneous Maps Records of OrangeCounty, California. putt a r b._ ._.............aas...y .. ......_. y3Y O RCLU the same for a tern oLtV9 tY_ _(2D_) years from and after the date hereof and no long' or gall+, cr cesingb,,ead gas, or other hydrocarbon substances, or either or any of tbem,,is prodnotld 1 tnereiroafot .�- —'t Zan&er'than thirty-five (3d5) years , In eo"dec .'`-^ < r',he premises it is hereby mutually agree as folAAwai at .i of the 1. Lessee it Lessor as royalty on oil the -----.—..Part proceeds of"81l oil ; �uaueed, saved and sold from the leased premises, after making the eustomery deductions for temperature,, water and b. s. at the posted available market price in the district, in which the premises area located for oil of like gravity the day the oil is ran into purchaser's pipe line or oiorage tank, and settlement shall be made by Lessee on or :before the 25th day of eaeh month for accrued royalties for the preceding calendar month,. jet Lessor's option exercised not oftener than once in any one calendar year days' previous written notice, Lessee shall deliver into Lessor's tanks on the leased praaaises, or. at mouth of well to pipe line designated by Lena nor free of cost, Lessor's royalty oil, provided that Lessee may at any time purchase and take Ler sor% royalty oil at said posted available market price. No royalty shall be due the Lessor for or on account of oil lost through oV,%poration, leak- age or otherwise l �- to the marketing of the same or delivery to Lessor if royalty oil is being taken is kind. 2. For all gas prc3noed, saved and sold from said land by Lessee, the Ldnee shall pay as royalty the..._l�„ l.. pert of the net proceeds from the sale of such gas, but nothing herein ,contained shall be deemed to d:liugMe the'Les ies t' 1, to produce, save, sell or otherwise dispose of gas from said land. For the purpose of having gasoline exUacted from gas £. produced from said land, the Lessee .may transport,or cause to be transported, to a gasoline extraction, ,plant located either on said land or on other lands, all or any portion of such gas where it may be commingled. with gaR from othe pp. properties. Mosee shall meter such gas so transported and such meter readings, together with the resultwof couten rs. testy by recognized methods made at approxima^elly regular intervals, at leant once every month, shall furnish the basis• for c.amputation of the amounts of gasoline and residue gas to be creditod to this lease. Gas used or consumed, or lost in the oi?erations,of any such plant, shall be frrp of charge, and Lessee shall not be hold accountable to the Lessor fLr the same or for any royalty thereon. Lessee shall not be required to pay royalty for or on account of any gas usel for repressuring any oil�bearing formation which in being produced from by a well or wells ou the leaned premises, even though such repressuring is done by in�iecting sueh gas into wells not situated on the leased: premises.. The IOAMor shall be -entitled to gao free of charge from any► ga,,s_wells Rn the leased promises for all stoves and inside lights in the principal dwelling houses on said land byy-making his owwcouneetions at a point designated by Lessee, the taking and use of said„gas to be at the Lessor'a sole risk, and expense at all times. S, Any oasinghead gasoline extracted :roue gas produced from said land shall, at the option of the Lenses, be re- turned to the oil produced therefrom and shall be trey err a part thereof; otherwise the Lessee shall pay to tite Lessor as royalty for gnoh extracted gasoline the equaL.—.2a........ ..... part of the net proceeds of the Bale thereof after deducts ng transpor°.a 04 and extraction coots, or of the Lessee's portion thereof if extracted on a royalty basis. If there shall uq, no available market /or no public or open market price for the gasoline at the place of extraction, then the Lessee i�all be entitled to sell aid/or-dispose of all the gasoline for the beat price and on the beat terms obtainable, W its no rose shall settlement of.royalty beat a=saw price than that obtained by t1w Lersee"ior its portion of the gaao' ne. j 4' The Lessee shall not be required to socount to the Lessor for, or pay royalty on, oils ga4_0)r wafer produced by tee �• Less�ie from said land rind used y it in its operations hereunder, but it may use such oil, gas and water free of', - sate, 6. Commencing*the... .4 +d..altoq, r.......... --of the term hereof, it the Lessee has not th11 totoce e Nei rminated this lease' as herein provided, the Lessee shall pay r tender to , r .r the Lessor ....... .... . advance, am rental, the am of. . ...... =tV ... . .... . ..... . ........Pc llarn pa awn land Sim-=-* Ahm 06,13 110 Nlia _�O_ tHe7ia- I-r _R�w_�o_a_Tt ;d.-• *d "*4e=%�r this le"a terminated as herein pro deT; the 08 S. Vae Lessee agrees to commence drilling operations on said land w0hin .. AJXt*_A9XX . . ....... from the date ham of (unless the Lessee has sooner commenced the drilling of an offset well on said land as herein provided) and to prase Bute the same with reasonable diligence until -'or gas is found in' paying qiuwtit*, or to a depth at whieh further drilling would, in the judgment -f the Lessee, � i unproM.'IbN; or it may at any tiva vilthin said period barminste thin lease and surrender said lend as hereinafter provided. No implied covenant shall be read Into this lease requiring As Lessea to drill or to oontinue drilling on said land, or fixing the measure of diligence therefor. The Lessee may eleet not to comrieners or prosecute the drilling of a well on said land az abova provided, and thereupon this lease shall tominate. A-111 07 T* se -not -be- e sablall elea 6 &I.- Iffilet __Z "1.— -1 IN; Pro-Oled; 4&ai the I~ 9; de"Off epefttiew fele the teftft:t .M capt as herein othemise Pic.- ..................... 11 mt Ou Of 00.0mi V7_WCZA ,agreed that the Lessee shall drill such wells and operate each completed oil well with 'reasonable diligerme and in aocwdPn-4e with good oil field practice so long as such wellA, shall- produce oil in paying quantities while this lease is in force as to the portion of said land on which such well or wells are situated; but in conformity with any reason- able conservation or curtailment program affecting the drWing of wells or the production of all oil and/or gas from said land, which tlxe Lessee may either voluntarily or by order of any authorized governmental agency subseebe to or be sub- ject to. Drilling and producing operations hereunder may also be suspended while the price offered generally to pro- ducers in the same vicinity for oil of the quality produced from said land is...cents or less per barrel at the well, or when there is no available market for the same at th", 9. If tl-i Lessee shall complete a well or wells on said land which shall fail to produce oil in paying quantities but which preoduces gas in paying quantities, the Lessee, shall either sell so much of said gas as it may be able to %V a market for, and pay the Lessor the royalty provided herein on the volume of gas so sold, or Lessee may, if i+ Ao elects, suspend the operation of such gas well or wells from t3me to time and during the period of such suspension pay or ten- der to the Lessor as rental ... I in advance, a sum equal to ... Ten-.Dx).1Jals..pe.r ... lot.. per-som for so much of the acreage then held under this lease, such rental to continue until producing operations are resumed and royalties are paid to the Lessor for gas sold as above provided. It in further understood and agreed that if the Lessee shall complete a well which shall fail to produce oil in paying quantities, but -which produces gas in pay- ing quantities, it shall not be obliged to conduct any further drilling operations on said land (except the drilling of offset wells as hereinafter provided) unless and until, in its judgment, the drilling of such additional wells under the provision of this lease is warranted in view of existing or anticipated market requirements. 10. If it should hereafter appear that the Lessor at the time of making this lease owns a less interest in the leaned land than the fee simple estate or the entire interest in 4he oil and gas under said land, then the rentals and royalties accruing hereunder shall be paid to the Lessor in the proportion which his interest bears to the entire fee simple estate or to the entire estate in said oil and gnu. 1, . . 11. There is her-1-7 expressly reserved to the Lessor, vend as well to the I Lessee, the right and privilege to convey, transfer or assign in whole or in part its interest in this lease or in the leased pr9mises or in the oil and/or gas therein or produced therefrom., but if the Lessor shall sell or treader any part or partsot the leased premises or any interest in the oil and/or gas under any part or parts thereof the Imasee's drilling obligations shall not thereby be altered, in- creased or enlarged, but the Lessee may continue to oiperata the leased premises and pay and settle -rents and royalties as an entirety. 18. The obligations of the Lessee hereunder shall beauspended while the Lessee is prevented from complying there- with, in whole or in part, by strikes, lockouts, action of the elements, accidents, rules and regulations of any Federal, State, Municipal or other governmental agency, or other matters or conditions beyond the control of the Lessee, wheth- er similar to the matters or conditions herein specifically enumerated or not. 14. The Lost;" shall pay all taxes on its im"rovements and all taxes on its oil stored on the leased premises on the first Monday of Maich in each year, and ....... . ...... of the taxes levi,,!d and t3seeseA aglinst the petroleum mineral rights. Lessw agree to pay all taxes levied and assessed against the land as swans . ...... :W.th .................... . of the taxes levied and amc;sed against the petroleum mineral Agnts, In the event the State, United States or any municipality levies a livens: , severance, production or other tax on the oil produced hereunder, or on the Lessee's right to operate, then and in that event the Lessee shall pay.......... .. .....................................of said tax and Lessor shall pay .......... VA'" ...................................... of said tax. Ifit , The Eemsee -WeR_U.U_ZU1U 1416uu "'thim ................ .......................... =::::=e ..... �- feet -of• thtrivaw ILI: Pa enwing bu PAGN Will"MA. 'he 1p-MO Lesear. The Lessee �agree Amagem 16, The Lessor may at all reasonable times examine said land, the work done and in progress, thereon, and the pro- duction therefrom, and may inspect the books kept by the Lessee in relation to the production from said land, to ascertain the production auid the amount saved and sold therefrom. The Lessiee agrees, on written request, to furnish to the Lessor copies of loge of all wells drilled by the Lessee on said land. 17. All the labor to be perfon and materials to be furnished in the operations of the Lessee hereunder shall be at the cost and expense of the Le tuld the Lessor shall not be chargeal"ith, or liable for, any part thereof a# and the Lessee shall protect said Is against liens of every character arisinaWm its operations thereon. .1 H • 1 1 i A 1 +. l f ♦ i i it • • a 17a. Notwit,�t,standing any other prevision in this lease, it is agreed that tl♦ ,, Lessee Will k $0.OQ ilex month. pay to the Le3sor a minimum royalty of � v e f -P rc 18..' Upon the written request the Lessor, the Leace agrees -tp laIr &U, rVilul Which it construeta through cultivated fields, i low plow depth m&MA upon similar request agrees to fene,05i manp , 11oles or other excavations to safeguard livestock on said land. W' qW 19. The Lessee shall have the right at L(ny time to remove from Paid Imid, A, machirterr, rigs, piping, casing, pumping stations and other property and improvements belonging to or furnished by the Lessee, provided that such removal shall be completed within a reasonable time ofter the termination of this 14,--ase. Lessee agrees nLer termination of this lease to fill all sump holes and other excavations made by It. 20. It royalty oil Is payable in onsh, Lessee may deduct therefrom a proportionate part of the cast of; treating un. merchantable oil produced from said premises to render same merchantable. In the event such oil L jot treated on the leaved promises, Lessor's cash royalty shall Wso bear a, corresponding proportionate part of the cost of transporting the oil to the treating ;Aant. Nothing herein contained thull be eonstrued as obligatIng Lessae to treat oil produced from the herein described premises. If Lessor shall elect to receive royalty oil in kind, such royalf.,y oil shall be of the same quality as that rAmoved from the leased premises for :Lessee's own account, and if Lessee's own oil shall be treated before such reauival, Leasorla oil wM be treated therewith before delivery to Lessor and Lessor in such event will pay a proportionate part of the cost of treatment. 21. Upon the violation of any of the terms or conditions of this lease by the Lou m- uad. the ieflure to begin to remedy the same within.thlrtY ... CIA3M ...... after written notice from the Lessor co to do, then, at the option of the Lessor, this lease shall forthwith cease and terminate, and all rights of the Lease.. in and to said land be at an end, save and excepting ......... ... ......... ) me= surrounding each well producing or being drilled and M* rpi;zet to which Lessee shall not be in default, and and excepting rights -of -way necessary for Lessee's operationsiprovidrd, however, that the Lrtimaa may at any time after rush default, and upon payment of the sum of ........... . ...... . ....... . ... . ........ . ........ . ......... (... ) Dollars to the Lessor as and for fixed and liquidated damages quitclaim to the Lessor, all of the right, title and inteir;. of Lessee in and to the leased lands in respect to which it has made default, and thereupon all rights and obligaia,,. - of the parties hereto one to the other shall, thereupon crodse and terminate as to the premises quitclaimed. 22. All royalties and rents payable it money hereunder may be paid to the Lessor by mailing or deli-,rering a cheek ther4orto ....... OUX ... Qt .. ......... . ..................... . . . . ......................... its successors and assigns, herein designated by the Lessor as depositary, the Lessor hereby granting to said depositary full power and authority on behalf of the Lessor, his heirs, executors, administrators, successors and assigns, to collect and receipt for all sums of money due and payable from, the Lessee to the Lessor hereunder. No change in the owner,-,O., ship of the laud or minerals covered by this lease, and no assignment of rents or royalties s4all be binding on the Lewee until it has been furnished with satisfactory written evidence thereof. 4 23. Lessor hereby warrants and agrees to defend title to the land herein, described, and agpjest4at'the Lessee, at its option, may pay and discharge any taxes, mortgages, or other liens existing, levied or asseWW on or against the above described land; and, in t1- even'•, it exercisea such option, it shall be subrogated to the rights of any holder or holders thereof and may reimburse V;self by applying to the discharge of any such mortf;age, tax, or' other lien, any royalty or rentals accruing hereunder. 24., If and when any oil produced from the do raised premims mall for any reason be unmarketable at tee well at the price mentioned in paragraph 8 hereof, the Lessor agrees in i-,neh case to tafte and receive Ids royalty in kind, and should he fail or refuse so to do, then the Lessee may sell the same at the best price obtainable, but not less than the price which the Lessee may be receiving for its own oil of the same quality. 25. The words "drilling operations" as used herein shall be held to mean any work or actual operations under•• taken or commenced in good faith for the purpose of carrying out any of the rights, privileges or duties of the Lessee under this lease, followed diligently and in due course by the construction of a derrick and ^ther necessary structures for the drilling of an oil or gas well, and by the actual operation of drilling in. the ground. 26. On the expiration or sooner termination of this lease, Lessee shall quietly and peaceably surrender possession of the premises to Lessor and deliver to him a good ,and sufficient quitell.-im deed, and so far as practietible cover all sumpL holes and excavations made by Lessee. Before removing the casing from any abandoned well Lenze6 shall notify Lessor of the intention so to do, end if Lessor within -A days thereafter shall inform Lease in writing of Les- sor's desire to wravert such well into's',vater well, and for that purpose to, retain and purchaao aaWng therein, Lessee will leave therein such am, unt of easing as Lessor may require for said purpose, provided !,Inch procedure is lawful and MI not violate any rule or order of any official, commission or authority then having jurisdiction in such mattem, emd X0. vided rmther that Lessor pay to Lessee .... fifty ..... (..$M% per cent of the original coat of the casing on the ground. 27. Lessee may at any time quitclaim this lease in its entirety A Mu Lessee shall be released from all further right to._ the laud so quitelaimed shall clear, of all claims of ftee ............... . .......... I I % 0_4 _* - -- --1! .4 " % VP .3 - — ­-Petaine-7- r--'--7 23. If this lease shall be assigned as to a particular part or as to particular parts of the leas6d premisea, such divi. sion or, severanee of the Y2se shall constitute mud create separate and distinct holdings under the lease of And according to the several portions of the leased premise as thus divided, and the holder or owner of each such portion of tho leased premises shall be required to comply with end perform the Lessee's obligations under this lease for, and only to the extent of, his portion of the leased Irea, provided jt�at nothing herein shall be construed to enlarge or multiply the Ir drill- ing or rental obligations, and provided furthe JW-the corrAmeucemotat of the drilling operations and the prosecution thereof, as provided in paragraph, six hereof, MAE by the Lwow or any amiguep, here: adir, shall protect the lease as a W Ole, 2. 1, . I I I I I , 111w This lease and all Its terms, conditions and stipulations shall extend to and be binding upon. the Iteirs, executors, adRWralors, grantoes, successors and wmi of the parties hereto. go. AiW notice from the saor t o must be given b.ir sending the same by retristered man addressed to the l"910-91 .. H=tAZ9.' land any notice from the Lessee to the Lessor must be given by send. Ing the samo by registered mail, addreAtil to the Lessor' .. . ..... . . ............. IN WITOSS VMUZOF, the parties hereto have caused this agreement to be duly executed as of the date first In, I- =5 11 . ... .................. . . ....... .. . . .............. . .... . . ... ....... 1W the county .. �. -y 9;tato of C�qrja, !odxftg ��1��Ay �1i1��1 CA3�1�T Qn«!d &�tl 'J19Q7CYlj 3 '• pe�sonelly appeaY� .,... ....,:..�.,. ,r.;. �---y' �.: _ ,, Clt1t to me.to, .� t of thew - the tha-lrxecu#led tho 'wlft,IW%� )mown to ma -to, be the paoms whq sxtsu ed the v4thin tuinmit on Be al£ a# the bi er zvfazrxed, euad air ► l tome that ---Cb �� y. uteri flier $me, .. im wififts Wit 13; lr have hftgab�> in atyv hand and atxea miy affiddtog the cisy-'&n4 ym fine wYx►W tfi r^ - �° �1c�t+urs► x"'�.th� +vtd �r.�ld CAv lytate: A Y h 4 r r Nn-nm.....vas..n,,.....,....r..a�°v-y�+.a::*•t.Xr.=+it'mP,�hT.wT*�"P,is#n•.�gx:�IR£.sC1N't:..r^i�"S+ Test �YN%-: /w�ticnc�i'wR�:CTR•_^:aa� aaw �wwfinMr.xVem4awx.+:l wrr.aw.rxa-n-ree+a'.'•r1iA' ,: STATZ Olt CALVORBTA , sa Q COY 'OF ORANGE ) ti Ori t� -3rd , day of Ifty 194'8 before maid the undersigned) Notlary Pnblie in, and for sala CounIy and 3t'pLte ,, residing vber*AAO ,, 91ay; crinaissionod and swern9 personally appeared J'ACX GHMj knwon � to as to be the Na*or and J'O L. ICK3XN;o kmown>to nee to M be the City Clark or the City O tti�ton 966h� a Muni, oipal ion t orpor'a escr ed �.� and. that vaaC1.4GO 0k.1a t L hin =5rta- nen►t and known to me to be -the the persons who exoftto the '' ,, k p . with instrument on behalf Of wild 3innicIpal > <<crro' rat�oa$ and acknowledged to me tMt. such *%�I*Ipa l corporation executed the dame+ ' Is W1T1WS °W0 T bAve hero to set my lhaad and affizoo my 9 offlaial, seal' the 'day and yeatr in tchis cartifUite first above ' wAtteA6 a i AA�''�a' or,fin .o ' M1 ,: J M[ew•x 11 r "J � .—..+'�-+J JIA ■y r `` yy {{ . _ �,. tl �I: WOO 0 4 Yvr4.. �W TiMr•iex°r•'!M' rMMMMyM11MT•x4 Sa'•5 0 A f ' Mt DiV,i 0,00 of oil, *A4 im 030 nth za area Avenue U916WIX4, California 90302 A sqo. lad, W , AxIvi stun a .itinIt©n iloaaa04h, VieW Door Mr. 'Zulbovti i 'Font awwwry 19, i96600"Unioat ill raq**djuq . &bov4-.,*oui ish#d oil v oll on c ty•'provo rty -to vt"Y much a maciatodty, Moor t t ",to'wA 3"•0t *read of the"V ty of xuft4vtou brodho 60 privartwa as 4" Vitt ovor'ty'+ parr. ww oxuto oil operations V"r.k t !�iic bouwk, Los *Ply d X0,4 WA t� m00% City Comail or* In to .00"s Qa� ��ri u a raaat r "t*ot oil produat on ordin air to e avo now A e9�E,e0t, .4rr Dtho yyke+ Cpo�ot,.nty $A i>� A o!� to +afro° v oil in,$moudFo to lea iho Vey in +Ck biow up ar ftit al it iiiMilt J4 001' 2A *-he aalawa ntiaose it the city Suould Poftit *044 1w►xa►t oil 44aR0* 4w MOIL tho SwopertIfe w o will **art ow trim'y; tify, # tr o9fS'Qe 110Miller city aeauwl►ra Straator �#ar�a► t I t t rues .. r EDMU'�iQ G. BROWN, Crovarnor STATE OF CAMFORNIA—RESOURCES AGENCY i ' i to DEOAMFENT OF CONSERUTION DIVISION OF OIL AND GAS 330 NOXTH LA EREA AVENUE INGLEWOOD, CALIFORNIA OM02 4anuary 19, 1966 k->> Gannon and Winel Nell No. %atson" 4 Sac. 10, US, R11W, SFB&M Huntington Beach field City of Huntington Beach P. Q. Box 190 Huntington Beach, California ',. Gentleman: Y p According to the records of the County Assessor, E, the Cite' of Huntington Beach is the owner of Lots 6 and 8 of Block 314 of the Tawnlot area, on which the well cited above has been dri.11,ed. Should the City sell or leases the property to anyone .: else, or :Lf it is already under lease to someone, will you notify this Divlsion�, giving the rune and address of the new owner or leaseholder, -ad the effective AAkA of thrnnAfar_ k ,. y.M. � _ � i, ��i _ - _. - ._ _. _��i _� � - ., - yr .� .. Ju1q 13, 1960 5 14.� 2. Memorandum to Mr, Doyle Miller' City Administrator Subject: COnd.ition of city owned property Lots 6 and 8 Block 314, H.B.Tract Mr. Miller Following the last council meeting I made an inspection of the subject city property, The property is under Tease to an oil operator and the well is not now under production. P'roducti,on eras halted some several months past. The operator has riot cleaned up the property despite ceasing production of this well. He has left on the property two tanks, drawworks, a boors fabricated from steel pipe, the pumping unlit and pertinent Ail production <; devi.ces;.the lot is in very poor condition from the clean- up standpoint. ` ., It would be well, I thin3r., to refer this matter to the 'City Attorney to check the status of the lease. Si Williams remembers that there was a minimum monthly pay- ment to be rude, if this is so and the operator is not x meeting the conditions of his lease to the City of Hunt, u ington beach, it appears that legal action is appropriate,, r I think that the equipment remaining on the property would offset the cleanup cost 'of these lots if the city were not able to locate the present owner of the lease, Initially this property was leased to Deane Newen.ham., subsequently the lease ruts sold to other producers,, r Y At the sane t1me I made this inspection, I also looktZd` at two city at_::d parcels on the west side of 15th Street in i the same block as the subject property. 'these two sites are not cleaned up in good oonditi.on,"the properties are lots 9 and 11 Block 315 where, there are 2 holes that are not properly abandoned o Abandoning these wells in the correct manner and cleaning up the lots should cost aboutl ,4to,00. Also there are lots- 17 and 19 Block 315 that needod cleanup, Mr. Williams estimates cleanup of approximv, tely $800 in the cape of these lots. Here l again it might be well to have they City Attorney check the status of leases on these properties and advise us as to the proper course of action+ 4 Very truly yours, 1,4 t 1 r 2 times A. .Wheeler City Engineer t. J$W : a s i 0